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nnnARY
proftfl R(>QO

JUN 14 1972
TREASURY DEPARTMENT

561673

- 3-

mm o
or by any local taxing authority. For purposes of taxation the amount of dis
at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections \x$h (b) and 1221 (5) of the Internal Revenue Code of
195h the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued 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. hlB, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

2 percent of the face amount of Treasury bills applied for, unless the tenders a
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal 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

January 9, 1958

, in cash or other immediately available funds

or in a like face amount of Treasury bills maturing

January 9, 1958

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

TREASURY DEPARTMENT
Washington

/
/

A. M.
KHK RELEASE/ HEHKXHE NEWSPAPERS,
Thursday, January 2, 1958
.
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 9, 1958 , in the amount of
$ 1,600,260,000 , 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 9, 1958 , and will mature April 10, 1958 , when the face

SEJ

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

the price offered must be expressed on the basis of 100, with not more than thre
decimals, e. g., 99.92$. Fractions may not be used. It is urged that tenders

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

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

WASHINGTON, D.
RELEASE A.M. NEWSPAPERS,
Thursday, January 2, 1958.

A-119

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 9, 1958,
in the amount of $1,600,260,000, 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 9, 1958,
and will mature April 10, 1958,
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 6, 1958.
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 9, 1958,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 9, 195o
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
DAVID A. LINDSAY
Assistant to the Secretary of Treasury

Mr. Lindsay was born on November 24, 1921 in New York
City the son of George N. Lindsay and Eleanor V. Lindsay
(deceased).

He is a graduate of Buckley School of New York

City and of St. Paul's School in Concord, New Hampshire. He
received an A.B. degree in 1943 from Yale University, and his
LL.B. from Yale Law School in February, 1949.
In March of 1949 Mr. Lindsay became associated with the
law firm of Davis, Polk, Wardwell, Sunderland and Kiendl of
New York City, and he became a member of this firm on
January 1, 1957. Mr. Lindsay was admitted to the New York
bar in June, 1949. He is a member of the American Bar and
the New York State Bar Associations, and the Association of
the Bar of the City of New York.

In the latter he served as

a member of the Committee on Taxation from 1953 to 1955.
Commissioned an ensign in the United States Navy on
June 15, 1943, Mr. Lindsay served on the U.S.S. Koiner in
various capacities including gunnery officer, navigator and
executive officer.

He was separated from military service

on June 10, 1946, and is now a lieutenant in the U.S. Naval
Reserve.
He married Elizabeth Ann Austin on June 29, 1946. They
have four children: Eleanor V., aged 9; Marion A., aged J;
David A., Jr., aged 5; and Edward A., aged 21 months. Their
home is located on East Gate Road, Huntington, R.F.D. 3, New York.

'^^FHRAFT PRESS RELEASE

/ T

Secretary Anderson today ^nnounsod tjic . appol nf.mpu*"
David A. Lindsay as'anAs^iStant to the Seere tar ytf~M~A
Mr. Lindsay will head the Legal Advisory Staff, which
analyzes and prepares reports on legal aspects of tax
legislation and regulations, and provides legal advice to the
Secretary on tax matters.
He succeeds Russell E. Train, who resigned recently when
President Eisenhower appointed him a judge of the United States
Tax Court.
Since March of 1949 Mr. Linday has been associated with
the law firm of Davis/ Polk*/WardwellV'Sunderland and Kiendl of
New York City, having become a member of that firm on
January 1, 1957. He was admitted to the New York bar in
June, 1949, and is a member of the American and the New York
State Bar Associations. Mr. Lindsay is also a member of the
Association of the Bar of the City of New York, and served
as a member of its committee on taxation from 1953 to 1955.
Mr. Lindsay was born November 24, 1921 in New York City.
He is a graduate of Buckley School of that city and of
St. Paul's School, Concord, New Hampshire.

He received an

A.B. Degree in 1943 from Yale University, and his LL.B. from
Yale Law School in February, 1949. From June, 1943 to June,
1946, Mr. Lindsay served as an officer in the United States Navy.
He is married and has four children, two girls and two boys.
(Biographical sketch attached.)

TREASURY DEPARTMENT
WASHINGTON, D.C.

FOR USE AT 5 P.M.,
^HHRSDiiY. ^ATO'ARY -2. 1958.

A-120

Secretary Anderson today administered the oath
of office to David A. Lindsay, a tax attorney of
New York City, as an Assistant to the Secretary of
the Treasury.
Mr. Lindsay will head the Treasury's Legal
Advisory Staff, which analyzes and prepares reports
on legal aspects of tax legislation and regulations,
and provides legal advice to the Secretary on tax
matters. He succeeds Russell E. Train, who resigned
recently when President Eisenhower appointed him a
judge of the United States Tax Court.
Since March of 1949 Mr. Lindsay has been
associated with the law firm of Davis Polk Wardwell
Sunderland and Kiendl of New York City, having
become a member of that firm on January 1, 1957. He
was admitted to the New York bar in June., 1949, and
is a member of the American and the New York State
Bar Associations. Mr. Lindsay is also a member of
the Association of the Bar of the City of New York,
and served as a member of its committee on taxation
from 1953 to 1955.
Mr. Lindsay was born November 24, 1921 in
New York City. He is a graduate of Buckley School
of that city and of St. Paul's School, Concord,
New Hampshire. He received an A.B. degree in 1943
from Yale University, and his LL„B» from Yale Law
School in February, 1949c From June, 1943 to June,
1946, Mr, Lindsay served as an officer in the
United States Navy. He is married and has four
(Biographical
sketch
attached.)
children, two
girls and two
boys.

DAVID A. LINDSAY
Assistant to the Secretary of Treasury

Mr. Lindsay was born on November 24, 1921 in
New York City the son of George N. Lindsay and Eleanor
V. Lindsay (deceased). He is a graduate of Buckley
School of New York City and of St0 PaulTs School in
Concord, New Hampshire, He received an A 0 B e degree
in 19;-!3 from Yale University, and his L.L0B. from
Yale Law School in February, 1949.
In March of 1949 Mr. Lindsay became associated
with the law firm of Davis Polk Wardwsll Sunderland
and Kiendl of New York City, and he became a member
of this firm on January 1. 1957. Mr. Lindsay was
admitted to the New York car in June, 1949. He is
a member of the American Bar and the New York State
Bar Associations, and the Association of the Ear of
the City of New York, In the latter he served as a
member of the Committee on Taxation from 1953 to 1955.
Commissioned an ensign in the United States Navy
on June 15, 1943, Mr, Lindsay sarved on the UoS^S. Kolner
in various capacities Including gunnery officer,,
navigator and executive officer,, He was separated from
military service on June 10, 1946, and is now a lieutenant
In the U.S. Naval Reserve.
fie married Elizabeth Ann Austin on June 29* 1946.
They have four childrens Eleanor V., aged 9; Marion A.,
aged 75 David A., Jr., aged 5; and Edward A., aged 21
months. Their home Is located on East Gate Road,
Huntington, R0F.D. 3, New York.

0O0

January 1958.

J /
mmr

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vietor *m**4* *t tuXA-Am bom? ^W**

** **m*mm% mmmdimm tow *

mrim* *t om ymr Wm **cnm&> **&***** inlUftto* In 1956 httmen
the a.S. fiemmmry mk- tm iUmrmmt
tbm m&mmnt

**4 -mntrmlti*nkof Bolivia.

mxtmmm until woxbor )X9 X9*M9 *xA*mkmg ta-r»«fi»-

ats \md«r mtoimb mXtrAm mmy mmmmt

mho xehac^ ^tofeiUsattcm /und

boUvl*^>a UP t* $h« cwtftfUrt of # M Dillon ehualdt
for aach paroh*s«8 mwAm. M U v t * «o^ld sub*KKiu*ntly
for dollars any bollTiitnog so &o^uire^ by %m tr&sumry.
%%%* B&lirim Hoymmmmt hm r«it©r&t«d it* intention to con tin-•
t* *p*m%m a tm* whan*** wi#»t in a&iefii th« v&lu» of It*
unit, th« bollTlane, *fcllteedot*rmln*4 by b»»ie mpgly an*

wmtm tXmtmtAmm

arising tmm tmmpormry or mrrrn^o la~flm#ne»«t bm%

mt %m v**A*t tm*m*mmt*X mnmm* *A*tmtm4 by *&rfcet forcoa,

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
J^gMay.j. January 2. 1958.

A-121

Under Secretary of the Treasury Julian B. Baird
and Ambassador Victor Andrade of Bolivia today signed
an agreement extending for a period of one year the
exchange agreement initiated in 1956 between the
U a S e Treasury and the Government and Central Bank of
Bolivia.
The agreement extends until December 31* 1958,
existing arrangements under which Bolivia may request
the Exchange Stabilization Fund to purchase bolivianos
up to the equivalent of $7*5 million should occasion
for such purchases arise. Bolivia would subsequently
repurchase for dollars any bolivianos so acquired by
the Treasury,
The Bolivian Government has reiterated its
intention to continue to operate a free exchange market
in which the value of its currency unit, the boliviano,
will be determined by basic supply and demand forces,
and to conduct exchange operations so as to minimize
exchange rate fluctuations arising from temporary or
erratic

influences, but net to resist fundamental

changes dictated by market forces.

oOo

RELEASE A. K. NEWSPAPERS,
Tuesday, January 1, 1958.

/ L

The Treasury Department announced last evening that the tenders for $1,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated January 9 and to mature April 10,
1958, which were offered on January 2, were opened at the Federal Reserve Banks on
January 6.
The details of this issue are as follows:
Total applied for - $2,1*30,399,000
Total accepted
- 1,700,11*7,000

(includes |lill,29l,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 1350,000)

High
Low

- 99.288 Equivalent rate of discount approx. 2.Bll% per annua
M
- 99.272
n e e
2.880* per annua

Average

- 99.278

approx. 2.858* per annua

(one 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

TOTAL

fof\

1*5,1*10,000
1,61*7,812,000
1*8,1419,000
79,889,000
23,378,000
1*9,823,000
2l*-$,5J*5,000
1*6,060,000
23,838,000
59,11*8,000
39,733,000
122,3l*l*.000

#2,430,399,000

35,1*10,000
1,007,918,000
1*1,1*19,000
79,889,000
23,378,000
1*8,228,000
193,615,000
1*6,030,000
23,31*0,000
59,11*8,000
39,733,000
102,039.000

11,700,11*7,000

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

RELEASE A . M . NEWSPAPERS,
Tuesday, January 7, 1958.

A-122

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 9 and to mature Apri

1958, which were offered on January 2, were opened at the Federal Reserve Banks o
January 6.
The details of this issue are as follows:
Total applied for - $2,1*30,399,000
Total accepted
- 1,700,11*7,000

(includes $1*11,298,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting one tender totaling $350,000)
High - 99.288 Equivalent rate of discount approx. 2.311% per annum
, Low
- 99.272
"
"
"
"
2.880$ per annum
Average -99.278 ." «• " " approx. 2.858% per annum
(one percent of the amount bid for at the low price was accepted)

Federal Reserve Total Total
District
Boston $ 1*5,110,000 $ 35,1410,000
New York

PhllldSphia
Cleveland
Richmond
Atlanta
Chicago
St Touis
Minneapolis
KansasCity
Dallas
San Francisco
TOTAL $2,1*30,399,000 $1,700,11*7,000

Applied for

Acce

Pted

1,61*7 812 000

1,007,918,000

WW,**

£^000

79,889,000
23,378,000
1*9,823,000
2U* 5 W 000
1*6,060,000
23 838 000
59 ll|8,000
39,733,000
122.3Mi.000

F/^'nnn
H'llA™
1^8,228,000
193,615,000
1*6,030,000
23,31*0,000
59,11*8,000
39,733,000
102,039,000

12
D*~SDIATE Ri^LSAfiS,
ft&eaday, January 7* 1358.

5~» Treasury Department imnounced today that on Sa-redey, January 9, tb*
Secretary of tb* Treasury on behalf of the federal national Mortgage A****^*****
¥ U 1 offer for cash subscription $750 Billion, or thereabouts, of 3-5/8 percent
ML (Maaageoeat and L i m i t i n g ) notes of the Aseociation to be dated January 80,
1950, and to mature August 23, 1980* tm books will be open only lor one amy,
on January 9.
The Treasury Bepartaeat has agreed to handle this offering for the Association and it will utilise the facilities of the federal Baaarva Banks, aa Fiscal
Agents of the United States, in receiving subscriptions, making eOlotaeeata, and
delivering securities allotted ia such the sane manner aa public debt offerings
are handled. This will be a straight cash offering, with no provision tor credit
In Tax aad Loan accounts aad no provision lor the exchange of the ML notes maturing on January SO, which will be paid off from the proceeds of the new Inane*
Subaerlptlona from ennmarelal banks, which for thlm purpose are defined aa
banks accepting demand deposits, tor their own account, will be received without
depoait, bat will be restricted in each ease to an amount not exceeding one-half
of too combined capital, surplus aad undivided profits of the subscribing bask.
0a all other subscriptions a payment of 2 percent of too amount of notes subscribed
tor must be made, not subject to withdrawal until after allotment.
Coaeaercial banks and other lenders are recreated to refrain from making unsecured loans or loans collateralized in whole or in part by the notes subscribed
for, to cover the Z percent deposits reenlred to be paid when subscriptions are
entered. A certification by the subscribing bank that no such loan has been made
will be repaired on each subscription entered by At for account of its customers.
A certification that the bank has no beneficial interest la its customers' subacrlptions, and that no customers have any beneficial interest la the bank's own
subscription, will also be required.
Any subscription addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, aad placed in the mall before midnight, January 9,
will be considered as timely.

TREASURY DEPARTMENT
mgim'.l. Jll«mf',»i.|..l. mi!I.LH!l'»mHJJIiJ...,.••'!.' » » B W I M M l V J M a ' » M W ~ W i ^ ^

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, January 7, 1956.

The Treasury Department announced today that on Thursday, January 9, the
Secretary of the Treasury on behalf of the Federal National Mortgage Association
will offer for cash subscription $750 million, or thereabouts, of 3-5/8 percent
ML (Management and Liquidating) notes of the Association to be dated January 20,
1958, and to mature August 23, 1950. The books will be open only for one day,
on January 9.
The Treasury Department has agreed to handle this offering'for the Association and it will utilize the facilities of the Federal Reserve Banks, as Fiscal
Agents of the United States, in receiving subscriptions, malting allotments, and
delivering securities allotted in much the same manner as public debt offerings
are handled. This will be a straight cash offering, with no provision for credit
in Tax and Loan accounts and no provision for the exchange of the ML notes maturing on January 20, which will be paid off from the proceeds of the new issue.
Subscriptions from commercial banks, which for this purpose are defined as
banks accepting demand deposits, for their own account, will be received without
deposit, but will be restricted in each case to an amount not exceeding one-half
of the combined capital, surplus and undivided profits of the subscribing bank.
On-all other subscriptions a payment of 2 percent of the amount of notes subscribed
for must be made, not subject to withdrawal until after allotment.
Commercial banks and other lenders are requested to refrain from malting unsecured loans or loans collateralized in whole or in part by the notes subscribed
for, to cover the 2 percent deposits required to be paid when subscriptions are
entered. A certification by the subscribing bank that no such loan has been made
will be required on each subscription entered by it for account of its customers.
A certification that the bank has no beneficial interest in its customers' subscriptions, and that no customers have any beneficial interest in the bank's own
subscription, will also be required.
Any subscription-addressed to a Federal Reserve Bank or Branch, or to the
Treasurer of the United States, and placed in the mail before midnight, January 9,
will be considered as timely.

IMMEDIATE RELEASE,
Wednesday, January 8, 1958

The Bureau of Customs announced today that the global quota of
1*5,656,U20 pounds of cotton having a staple length of 1-1/8 inches
or more was filled for the quota year ending July 31, 1958, on
December 30, 1957.
The cotton imported under the quota originated in the following
countries in the amounts indicated: Egypt, ll*,070,2l*9 pounds; Peru,
6,713,373 pounds; Mexico, 21*,865,683 pounds; and The Sudan, 1,11$
pounds. Of the total amount of Peruvian cotton imported, 5,027,701*
pounds were l-ll/l6 inches or over in staple length.

15
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 8, 1958

A-124

The Bureau of Customs announced today that the global quota of
U5,65o,U20 pounds of cotton having a staple length of 1-1/8 inches
or more was filled for the quota year ending July 31, 1958, on
December 30, 1957.
The cotton imported under the quota originated in the following
countries in the amounts indicated: Egypt, lU,070,2i;9 pounds; Peru,
6,713,373 pounds; Mexico, 2k,865,683 pounds; and The Sudan, 7,115
pounds. Of the total amount of Peruvian cotton imported, 5,027,701*.
pounds were l-ll/l6 inches or over in staple length.

- 2 -

1G
1^

serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The

Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be

final. Subject to these reservations, noncompetitive tenders for $200,000 or les

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

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 16, 1958 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 16, 1958 Cash
and exchange tenders will receive equal treatment. Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

sale or other disposition of the bills, does not have any exemption, as such, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1951*. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal

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

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

i. i

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

be interest. Under Sections li51i (b) and 1221 (5) of the Internal Revenue Code
1951* the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued 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. ItlB, Revised, and this notice, prescribe

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

TREASURY DEPARTMENT
Washington

A. M.
8SR RELEASE/ M0KKXKJ NEWSPAPERS,
Thursday, January 9, 1958

&£
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 16, 1958 , in the amount of
$ 1,600,332,000 , 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 16, 1958 , and will mature April 17. 1958 , when the face

amount will be payable without interest. They will be issued in bearer form on

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/twa o'clock p.m., Eastern Standard time, Monday, January 15. 1958 .«
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 th
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders

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

incorporated banks and trust companies and from responsible and recognized de

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

TREASURY DEPARTMENT
WW">l"i.t.-mw tw«rw''w.^ . ^ ^ » i * ^ ^

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, January 9, 1958*

A-125

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 16, 1958,
in the amount of $1,600,332,000, 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 16, 1958,
and will mature April 17, 1958,
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 13, 1958.
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
uri?ed 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'Js applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
immediately after the closing hour, tenders will be opened at the
Peder™ReBerve Banks and Branches, following which public announcement Hill be madeby the Treasury Department of the amount and price
ranL of accepted bids? Those submitting tenders will be advised of
theAcceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final
Subject to these reservations, non-competitive tenders lor
accepted
iloo 000 or
in full
less without
at the average
stated price from
(in three
any one
decimals)
bidder will
of accepted
be

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 16, 1958, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 16, 1958.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 195^. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actuallyreceived either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

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,. •-*

,4*^

S T A T U T O R Y D E B T UMCTATIgN
A S O F . .?8<:e.!?!!:?-~?.if. 9 * 7

2
«, _• .»«_

Jan. 9ji^..i25~L

Washington, — « . . . — — • * - #
Section 21 of Second Liberty Bond Act, as amended, provides that the face amoonc <rf obl*gac*o««i « a u e d _£ s ac~6--tof that Act, and the face amount of obligations guaranteed as to principal and interest by the U u _ ^ * ^ " \ f 000\000,000
anteed obligations as may be held by the Secretary of the Treasury), "shaH not exceed inthe W«f_f*_J*V' ,, J| ie 'current re(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outs tandingat any one time. ^ ? ^ ^ " { 1 ™ ^ ^ of the holder
demotion value of any obligation issued on a discount basis wnich is redeemable prior to maturity at the option
shall be considered as its face amount."
The following table shows the face amount of obligations outstanding and the face amount which can still be iss
this limitation:
$275,000,000,000
T
Total face amount that may be outstanding at any one time
-^
OutstandingObligations issued under Second Liberty Bond Act, as amended
Intere st-bea r ing:
Treasury bills ..
I 26,857,097,000
Certificates of indebtedness.
34,553 » 539 » 0 0 0
Treasury notes.
.
20.663.899.000 t
BondsTreasury
82 , 067 , 294 , 250
Savings (current redemp. value) ........
52»474,370 ,682
Depositary.
.
155 . 942,500
Investment series
10.252.785.000
Special FundsCertificates of indebtedness
30,020,781,000
Treasury notes....
12,315,705 ,000
Treasury bonds
.
3.462.500.000
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 .. . . .

82,07^,535,000

144,950,392,432

45.798.986.000
272,823,913,432
837,691,763

50,766,570
905,264
746.000,000

797.671.834
274,459,277,029

Guaranteed obligations (not held by Treasury):
Interest-bearing:
103,694,150
Debentures: F.H.A
667.075
Matured, interest-ceased
.
_
Grand total outstanding ._
Balance face amount of obligations issuable under above authority,

104.361.225

Reconcilement with Statement of the Public I>bt.5?.S.®5!?!5£~2i~..~!:?5Z
(Date)
(Daily Statement of the United States Treasury, ^Cemter^lj..„1§„§7»
J
OutstandingTotal gross public debt..
„
„
„
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.......
„
„.
Deduct - other outstanding public debt obligations not subject to debt limitation

A-126

274,563.638,254
436.361.7^6

274,897,784,291
104.361.225
275,002,145,516
438.507,262
274,563,638,254

STATUTORY DEBT LIMITATION
1957

AS OF....^.?.^.^Jh.

Washington, .J.f£.*...8.l.l3&
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate 1275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the'current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The 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
$275,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
Certificates of indebtedness.
Treasury notes .BondsTreasury .„
Savings (current redemp. value),
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
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

$ 26,857 ,097,000
34,553,539,000
20,663,899,000 t
82,067,294,250
52,474,370,682
155.942,500
10.252,785,000

82,074,535,000

144,950,392,432

30,020,781,000
12,315,705,000
3,462,500,000

45.798.986.000
2 7 2 , 8 2 3 ,913,432
837,691,763

50,766,570
905,264
797,671,834
274,459,277,029

746,000.000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
103,694,150
Debentures: F.H.A
667,075
Matured, interest-ceased
Grand total outstanding ._
,
Balance face amount of obligations issuable under above authority,
Reconcilement with Statement of the Public Debt

104,361,225
274.563,638,254
436,361,746
t

.'....'. ..::...
(Date)

(Daily Statement of the United States Treasury,

December..^l*.. 1.23Z

)

(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
A-126

274,897,784,291
104,361,225
275,002,145,516
438,507,262
274,503,638,254

Comparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
Oct. llf
1957
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand
56,410,493
Time
28,737,084
Deposits of U. S. Government....
2,394,655
Postal savings deposits.........
11,284
Deposits of States and political
7,176,372
subdivisions.
8,403,799
Deposits of banks
Other deposits (certified and
1.274,991
cashiers' checks, etc•)•
Total deposits
104,408,678
Bills payable, rediscounts, and
other liabilities for borrowed
money
1,020,221
Other liabilities
1.996,776
Total liabilities, excluding
capital accounts
107,425,675
CAPITAL ACCOUNTS
Capital stock:
Preferred.. •
3,775
Common
Total
,
2,772,g?o
4,320,927
Surplus
1,730,206
Undivided profits
,
238.524
Reserves. •
Total surplus, profits and
6,289,657
reserves.
Total capital accounts
9,062.187
Total liabilities and
capital accounts
Il6.467.862
RATIOS:
Percent
U.S.Gov't securities to total assets
26.53
Loans & discounts to total assets...
42.83
8.68
Capital accounts to total deposits.•

Increase or decrease : Increase or decrease
since Septa 26. 1956
since June 6. 1957
:Percent
Amount
Amount
:Percent

June 6,
1957

Sept. 26,
1956

54,380,721
27,761,505
2,049,715
11,815

55,373,256
25.976,713
3.090,947
12,856

2,029,772
975,579
3^,940
-531

3.73
3-51
16.83
-4.49

1,037,237
2,760,371
-696,292
-1.572

7,677,687
7,967,347

6,897,426
8,437,734

-501,315
436,452

-6.53
5.48

278.946
-33,935

4.04
-.40

1.^46.341
101,295,131

1,434.095
101,223,027

-171.350
3,113,547

-11.85
3.07

-159.104
3,185,651

-11.09
3.15

814,874

749,376
lf76l,8?4

205,347
~J8*~~_8

25.20
3.04

270,845
234,882

36.14

104,047,803

103,734,297

3,377,872

3.25

3,691,378

3.56

3,791
2.702.682

3,843

-.42
2.44
2.44

-68

-1.77

4,201,561
1,602,630
233,50?

^,597,113
4,044,111
1,541,333
258.486

-16
66,073
^057
119,366
127,576
5,021

2^r
7.96
2.15

276,816
188,873
-19.962

6.037.694
8.744.167

5.843.930
8,441.043

251.963
318.020

4.17

445.727
621.144

7.63
7.36

112.791.970
Percent
26.98
43.05
8.63

112.175.340
Percent
27.67
41.93
8.34

3,695.892

3.28

4.312.522

3.84

,937,7?8, mm

mm.
175 . W

1.87
r^O.63

Nfe.53
-12.23

13»?3

6-77
^ 6T
75
12.25
-7*72

NOTE: Minus sign denotes decrease.

Statement showing comparison of principal items of assets and liabilities of active national banks
as of October 11, 1957, June 6, 1957 and Sept. 26, 1956
(In thousands of dollars)
Oct. 11,
1957
Number of banks

4,641

June 6,
1957

Sept. 26,
1956

4,654

4,671

Increase or decrease :Increase or decrease
since June 6. 1957
: since Sept. 26. 1956
Amount
: Percent : Amount
: Percent
-13

-30

ASSETS
Commercial and industrial loans... 21,875,673
Loans on real estate
12,307,341
All other loans, including overdrafts
16,615.151
Total gross loans
50,798,165
Less valuation reserves
902,589
Net loans
49,895.576
U. S. Government securities:
Direct obligations
30,904,269
Obligations fully guaranteed....
2.531
Total U. S. securities
30,906,800
Obligations of States and political subdivisions
7,452,643
Other bonds, notes and debentures.
1,631,550
Corporate stocks, including stocks
of Federal Reserve banks
251.494
Total securities
40.242.487
Total loans and securities... 90.138.063
Currency and coin
1,307,011
Reserve with Federal Reserve banks
11,851,510
Balances with other banks
11.049.877
Total cash, balances with other
banks, including reserve balances and cash items in process of collection
24,208.398
Other assets
2.141,401
Total assets
116,487,862

21,284,774 20,086,714 590,899 2.78 1,788,959ro 8»912,093,766
11,910,541
213,575
1.77
396,800co

3.33

16.068.008
49,^46,548
886,385
48,560,163

15.773.403
47,770,658
739.057
47,031,601

547.143
1,351,617
16,204
1,335,413

3.40
2.73
1.83
2.75

841.746
3,027,507
163.532
2,863.975

5.34
6.34
22.13
6.09

30,432,845
3.620
30,436,465

31,036,665
3.662
31,040,327

471,424
-1.089
470,335

1.55
-30*08
1.55

-132,396
-1.131
-133,527

-.43
-30.88
-.43

7,259,756
1,675,150

7,056,565
1,681,609

192,887
-43,600

2.66
-2.60

396,078
-50,059

5.61
-2.98

239.074
39.610.^45
88.170.608
1,403,881
11,494,513
9.690.359

232,852
40,011.353
87.042.954
1,574,263
11,306,822
10.475.651

12,420
632.042
1.967.455
-96,870
356,997
1.359.518

5.20
1.60
2.23
-6.90
3.11
14.03

18.642
231.134
3.095.109
-267,252
544,688
574.226

8.01
.58
3.56
-16.98
4.82
5.48

22.588.753
2.032.609
112,791,970

23.356.736
1.775.650
112,175,340

1.619.645
108.792
3,695.892

7.17
5.35
3.28

851.662
365.751
4,312,522

3.65
20.60
3.84

- 2 -

24
increased $115,000,000 to $1,725,000,000. Other loans, including loans to

farmers, loans to banks, and other loans to individuals (repair and moderniz

and installment cash loans, and single-payment loans) of $9,500,000,000 incr
2.50 percent since June. The percentage of net loans and discounts to total

assets on October 11, 1957 was 42.83 in comparison with 43.05 in June and 41
in September 1956.
Investments of the banks in United States Government obligations on Octo-

ber 11 aggregated $30,900,000,000 (including $2,500,000 guaranteed obligatio

an increase of $470,000,000 in the period. These investments were 26.50 perc

of total assets. Other bonds, stocks and securities of $9,335,000,000, which

included obligations of States and political subdivisions of $7,450,000,000,

$160,000,000 more than in June. Total securities held amounting to $40,250,0
increased $630,000,000.

Cash of $1,300,000,000, reserve with Federal Reserve banks of $11,850,000,00

and balances with other banks (including cash items in process of collection

$11,050,000,000, a total of $24,200,000,000, showed an increase of $1,600,00
Borrowed money of $1,020,000,000 was up $205,000,000 since June.
The capital stock of the banks on October 11 was $2,772,000,000, including

$3,775,000 of preferred stock. Surplus was $4,321,000,000, undivided profits

$1,730,000,000 and capital reserves $239,000,000, or a total of $6,290,000,0
Total capital accounts of $9,062,000,000, which were 8.68 percent of total

deposits, were $318,000,000 more than in June when they were 8.63 percent of
total deposits.

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
REIEASE A. M. NEWSPAPERS,
MONDAY, JANUARY 13, 1958.

A-127

The total assets of national banks on October 11, 1957 amounted to nearly
$116,500,000,000, it was announced today by Comptroller of the Currency Ray M.
Gidney. The returns covered the 4,641 active national banks in the United
States and possessions. The assets were $3,700,000,000 more than the amount
reported by the 4,654 active banks on June 6, 1957, the date of the previous
call.
The deposits of the banks on October 11 were $104,400,000,000, an increase

of $3,100,000,000 since June. Included in the recent deposit figures were demand

deposits of individuals, partnerships, and corporations of $56,400,000,000, whic
increased $2,000,000,000, and time deposits of individuals, partnerships, and
corporations of $28,700,000,000, up $975,000,000. Deposits of the United States
Government of $2,400,000,000 increased $345,000,000 in the period; deposits of
States and political subdivisions of $7,200,000,000 decreased $500,000,000, and

deposits of banks amounting to $8,400,000,000 showed an increase of $430,000,000

Postal savings were nearly $11,300,000 and certified and cashiers' checks, etc.,
were $1,275,000,000.
Net loans and discounts on October 11 were $49,900,000,000, an increase of
$1,300,000,000 since June. Commercial and industrial loans of $21,875,000,000
increased $590,000,000, and loans on real estate of $12,300,000,000 were up

$200,000,000. Retail automobile installment loans increased $160,000,000 to nea
$3,900,000,000. Other types of retail installment loans of $1,480,000,000 in-

creased $36,000,000. Loans to brokers and dealers in securities, and other loans
for the purpose of purchasing or carrying stocks, bonds, and other securities

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
REIEASE A. M. NEV/SPAPERS,
MONDAY, JANUARY 13, 1958.

9^
w

A-127

of $3,100,000,000 since June. Included in the recent deposit figures were demand

deposits of banks amounting to $8,400,000,000 showed an increase of $430,000,000

Postal savings were nearly $11,300,000 and certified and cashiers1 checks, etc.,
were $1,275,000,000.
Net loans and discounts on October 11 wore $49,900,000,000, an increase of
$1,300,000,000 since June. Commercial and industrial loans of $21,875,000,000
increased $590,000,000, and loans on real estate of $12,300,000,000 were up

$200,000,000. Retail automobile installment loans increased $160,000,000 to nea
$3 900,000,000. Other types of retail installment loans of $1,480,000,000 in-

creased $36,000,000. Loans to brokers and dealers in securities, and other loans
for the purpose of purchasing or carrying stocks, bonds, and other securities

- 2 -

increased $115,000,000 to $1,725,000,000. Other loans, including loans to

farmers, loans to banks, and other loans to individuals (repair and modernizat

and installment cash loans, and single-payment loans) of $9,500,000,000 increa
2.50 percent since June. The percentage of net loans and discounts to total

assets on October 11, 1957 was 42.83 in comparison with 43.05 in June and 41.9
in September 1956.
Investments of the banks in United States Government obligations on Octo-

ber 11 aggregated $30,900,000,000 (including $2,500,000 guaranteed obligations

an increase of $470,000,000 in the period. These investments were 26.50 percen
of total assets. Other bonds, stocks and securities of $9,335,000,000, which

included obligations of States and political subdivisions of $7,450,000,000, w

$160,000,000 more than in June. Total securities held amounting to $40,250,000
increased $630,000,000.

Cash of $1,300,000,000, reserve with Federal Reserve banks of $11,850,000,000,
and balances with other banks (including cash items in process of collection)

$11,050,000,000, a total of $24,200,000,000, showed an increase of $1,600,000,
Borrowed money of $1,020,000,000 was up $205,000,000 since June.
The capital stock of the banks on October 11 was $2,772,000,000, including
$3,775,000 of preferred stock. Surplus was $4,321,000,000, undivided profits

$1,730,000,000 and capital reserves $239,000,000, or a total of $6,290,000,000
Total capital accounts of $9,062,000,000, which were 8.68 percent of total
deposits, were $318,000,000 more than in June when they were 8.63 percent of
total deposits.

4,641

June 6,
1957

Sept. 26,

4,654

4,671

1956

Increase or decrease :Increase or decrease
since June 6. 1957
tsince Sept. 26. 1956 ^
Amount
:Percent : Amount
:Percent ,

-30

-13

ASSETS
nercial and industrial loans.••
21,675,673
is on real estate
12,307,341
All other loans, including overdrafts
16.615.151
Total gross loans
50,798,165
Less valuation reserves.....
902,589
Net loans
49,895.576
U. S. Government securities:
Direct obligations
30.904,269
Obligations fully guaranteed....
2.531
Total U. S. securities
30,906,800
Obligations of States and politic
7,452,643
cal subdivisions
1,631,550
Other bonds, notes and debentures.
Corporate stocks, including stocks
251.494
of Federal Reserve banks
Total securities
40.242,487
90.138.063
Total loans and securities...
1.307,011
Currency and coin
11,851,510
Reserve with Federal Reserve banks
Balances with other banks
11.049.877
Total cash, balances with other
banks, including reserve bauU
ances and cash items in process of collection
24,208.398
2.141.401
Other assets
Total assets
Il6.467.862

21,284,774
12,093,766

20,086,714
11,910,541

590,899
213,575

2.78
1.77

1,786,959
396,800

8.91
3.33

16.068.008
49,446,546
886,385
46,560,163

15.773.403
47,770,658
739.057
47.031,601

547.143
1,351,617
16.204
1,335,413

3.40
2.73
1.83
2.75

841.746
3,027,507
2,863.975

5.34,
6.34
22.13
6.09

30,432,845
3.620
30,436,465

31,036,665
3.662
31,040,327

471,424
-1.089
470,335

1.55
-30.08
1.55

-132,396
-1,131
-133,527

-.43
-30.88 .
-.43

7,259,756
1,675,150

7,056,565
1,681,609

192,887
-43,600

2.66
-2.60

396,078
-50.059

5.61
-2.98

239,07**
39.610.445
88.170.608
1,403,861
11.494,513
9.690.359

232.852
40.011,353
87.042.954
1,574,263
11,306,822
10.475.651

12,420
632.042
1.967.455
-96,870
356,997
1.359.518

5.20
1.60
2.23
-6.90
3.11
14.03

18.642
231.134
3.095.109
-267,252
544,668
574.226

8.01
3.56
-16.98
4.82
5.48

22.588.753
2.032,609"
112,791.970

23.356.736
1.775.650
112.175,340

1.619.645
108.792
3,695,892

7.17
5.35
3.26

851.662
365.751
4,312,522

3.65
20.60
3.84

163,532

L ^

1 <

Coinparison of principal items of assets and liabilities of national banks - Continued
(In thousands of dollars)
Increase or decrease • Increase or decrease
since June 6, 1957
• since Sept. 26, 1956
Amount
:Percent • Amount
:Percent

June 6,
1957

Sept. 26,
1956

56,410,493
28,737,084
2,394,655
11,284

54,380,721
27,761,505
2,049,715
11,815

55,373,256
25,976,713
3,090,947
12,856

2,029,772
975,579
344,940
-531

3.73
3-51
16.83
-4.49

1,037,237
2,760,371
-696,292
-1,572

1.87
10.63
-22.53
-12.23

7,176,372
8,403,799

7,677,687
7,967,347

6,897,426
8,437,734

-501,315
436,452

-6.53
5.48

278,946
-33,935

4.04
-*b0

1,274,991
104,408,678

1^6.341
101,295,131

1.4?4.095
101,223,027

-171,350
3,113,547

-11.85
3.07

-159,304
3,185,651

1,020,221
1.996,776

814,874
1,937,798

749,376
1,761,894

205,347
58,978

25.20
3.04

270,845
234,882

36.14
13.33

107,425,675

104,047,803

103,734,297

3,377,872

3*25

3,691,378

3.56

-.42
2.44
2.44
2.84
7.96
2.15

-68
175.485
175,417
276~,8l6
188,873
-19.962

-1.77
6.77
6.75
6V84
12.25
-7.72

4.17
3.64

445.727
~o21.l44

3.28

4.312.522

Oct. 11,
1957
LIABILITIES
sposits of individuals, partnerships, and corporations:
Demand
TLT.3
sposits of U. S. Government
>stal savings deposits...
^posits of States and political
subdivisions
Deposits of banks
Other deoosits (certified and
cashiers» checks, etc.)
Total deposits
Bills payable, rediscounts, and
other liabilities for borrowed
r.on?.y
Other liabilities
Total liabilities, excluding
capital accounts

CAPITAL ACCOUNTS
Capital stock:
Preferred
3,775
3,791
3,843
-16
Co;-on
?J,268125_>
2,702,682
2.593,270
66,073
Total
2,772,530
2,706,473
2,597,113
"06,057
Surplus
4,320,927
4,201,561
4,044,111
119,363
Undivided profits
1,730,206
1,602,630
1,541,333
127,576
Pesorves
238,524
233_?_503
258.486
5,021
Total surplus, profits and
reserves
6,289.657
6,037,694
5,843.930
251,963
Total capital accounts
9>062,l87
8.744,167
8,443,043
318,020
Total liabilities and
capitsl accounts
116,487,862
112,791,970
112,175,340
3,695,892
y.TlCS:
Percent
Percent
Percent
U.f.Gov't securities to total assets
26.53
26.98 •
27.67
yy.-.r-.i & discounts to total assets...
42.83
43.05
41.93
NOTE:
Capital accounts to total deposits..
8.68
8.63
8.34

-13.09.
3.15

_ 7 V 63_
7.36~

3.84
P^3
CD
Minus sign denotes decrease.

• * -

fact mutt mm dealing vitb IftrtitttUau vita
poUeie* of nillioM of Aawrieaa
li** iMurane* cO-KMt&itSfi*to
mmiX* mA timl mmUtm*
by tto» lift
peal to
policy divided* mm mrmXmm* tm tm mm* 195? t H U
m tJae f m a 4eter*taatiea of their tax liability.
Is rim ©f H U i m* in ©rtar to &»sur* tmXX o*&*l4ft*fttleft of the
mr*mm*% mtm** of taxation of insurance ccmuymy Amm*9 it
se«» rtfi**oaftbla to extend the Xm «ff*«tif* for the tsxabl*

1*55 *** xm t** mmmm mmr m*&

^ " W ^ ^

Ami imm*.
Xt noald *• my boom that we could than wroceed to
bet fair %m% m%vlt*%bXm.
£eeerdla«ly, t&e trmimwty vould g© along vith *a
of ti*t 1955 legi»I*tic* mo thAt it aitfit bt €*pU*d to 1957
of life

(Signed) Robert B. Anderson

/I / -

Immediate Release
/ \ - f ") p\
^ Treasury Secretary Inderson today sent the following letter to Senator
JUgry F. Byrd, Chairman of the Senate Finance Committee, and Representative
'Wlburj). Mills, Chairman of the

House fays and i~eans Committee:

It*

to wiotto mmmmmmMAmm

iteioo m in toe

mAtAt%%% witis raferroc* to too l~~eooo tax
to* 1937 **na*g* of XAtm tXmmmm
%m tmrnmrnifm of ymm Ooae&ttoo oat too
«oool*i»e * %**** mfeer of lo«Jiiirl««.
-i

...

-4 -^

A» foo know, in *j*m obiirnrr of sow 1 ngt 11*^1 tapj life
eooe oeofealoo v o l ee immt for too feo* 1957
m*mm*mm
too l*m towmmXM mAmb m* m* loom «»llod oiaee *9*S» I
believe it to ©o geatrslly o$reoe. to*t t&* *$$&l«otlom
1942 tmmmlm %m*M9 mttmr m Xmm of oi**t feero,
fir tn* tmmbX* mm* A*k$ %****& 1$$% *
mttmtim

tm tit* taxabls V * r * Xm

m* 1$$*.

tfiliwat to

tie foojeci, it to not oKti~e*l* toot final U g U U t t o o , oloa*
l*gi»l*ti©*, eooM Ho oiogfteo bmtmm **?*& X5t* mmm* the
for too Iff? taeteolo ymmr

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, January 10, 1958.

A-128

Treasury Secretary Anderson today sent the following latter to
Senator Harry P. Byrd, Chairman of the Senate Finance Committee, and
Representative Wilbur D. Mills, Chairman of the Rouse Ways and Means
Committee z
January 10, 1958
My dear Mr. Chairman:
Pursuant to various conversations which we in the
Treasury have had with you and other Members of your
Committee, I am writing with reference to the income tax
law which will apply to the 1957 earnings of life
insurance companies, concerning which the Members of
your Committee and the Treasury have been and are receiving
a large number of inquiries.
As you know, in the absence of new legislation, life
insurance companies will be taxed for the year 1957 in
accordance with the 1942 formula which has not been
applied since 1948. I believe it to be generally agreed
that the application of the 1942 formula would, after a
lapse of eight years, produce some inequitable results.
For* the taxable years 1949 through 1956 a succession
of interim laws were adopted, of which the most recent
was the law effective for the taxable years 1955 and 1956.
The Treasury Department believes that it is most
desirable that a permanent method of taxation of life
insurance companies be worked out, and we hope to
propose in the very near future an approach which we
believe will be reasonable and equitable for the
foreseeable future.
I am sure that the House Ways and Means and the
Senate Finance Committees will want to consular any such
propor-f?..ls i'r.' the light of testimony that will be
submitted aad other considerations which the Members of
your Committee may want to suggest or evaluatec
Under these circumstances, and because of the
complexity of the subject, it is not probable that
fx>-v\I legislation, along whatever jin^s the Cong-ess
determines is appropriate for pery^nent legislation,
could be adopted before March 15th when the returns for
the 1957 taxable year are due.

2 An Important fact is we are dealing with
institutions with responsibility for the insurance
policies of millions of American people and final
decisions by the life insurance companies as to policy
dividends and surpluses for the year 1957 will depend
to some extent on the final determination of their tax
liability. In view of this, and in order to assure
full consideration of the best permanent method of
taxation of insurance company income, it would seem
reasonable to extend the law effective for the taxable
years 1955 and 1956 for another year and make it
applicable for 1957 income. It would be my hope that
we could then proceed to work out a permanent method
of taxation In this area which would be fair and
equitable.
Accordingly, the Treasury would go along with an
extension of the 1955 legislation so that it might be
applied to 1957 income of life insurance companies.
Sincerely yours,
/s/ Robert B. Anderson
Secretary of the Treasury

oOo

This budget has had long and arduous consideration by the peopU

responsible for our military security and for our other essential
programs. We believe it is a practical and prudent budget that
will add significantly to our military strength while recognizing
the fundamental importance of a healthy growing economy not only

to support that security but provide better living for our people.

oOo

- 3 for the people. History records that in a number of countries
where the failure to observe sound fiscal and monetary policies
inflicted hardships and suffering on the people, the citizens
did not have the basic understanding and the self-discipline to
which I refer.
During the coming year our large gross national product
will include in addition to the private expenditures the substantial government expenditures represented in this budget.
I believe that we will all be prudent and that we will all be
confident in the use of these great resources to our best
advantage both as individuals and as a Nation.
Realizing the enormous size of our task, we here in the
Treasury want to meet our responsibility in financing the obligations of the government in a re asonable, flexible and sensible
manner.
First of all, we are going to pay for security for our
country, as such security is judged by the people in the best
position to know. We are going to regard our position of
strength as a long-time requirement and think in terms of
, maintaining our security over an unknowable period of time.
We are going to try to assure the kind of economic strength
and development that is indispensable to our military security.
We will neglect neither, and the world should know it!
Whatever choices are required, we will make them. Whatever

discipline is called for, we will exercise it as a free people shou

-2-

,:^f,iff **

es't^matilig receig^srjwe must remember that we are^ trying-tfgfj
lo^" tha^faj^bead.(/4t if veryd^rficu]^ to app^fd^Wi ecj^pejf
:e/andAomTMTex as dkffk:< .Jm the ^h^rTrujrand ijf i^ even Imore
difficult tS b€ preCise over^luhe longe^€un,
The current readjustments in the economy with which we are
all familiar are in part the consequences of a period of rapid
expansion during the past several years.

These readjustments,

however, require us to scale down our earlier estimates of receipts in the present fiscal year.

On the other hand, I believe

very confidently in the continued growth of this Nation once the
present period of adjustment is completed.

We have the ingre-

dients for a healthy economy and for one that will expand to
meet our needs.

It would be a mistake, I feel, for anyone to

sell our dynamic economy short for any protracted period.
We have a current annual gross national product of more than
$430 billion.

We have a growing population.

improving our standard of living.

We are constantly

We have, in addition, a

in our people and our government to use

the

mechanisms at our command so as to employ our economic strength
in a way which will assure a reasonable rate of sustainable growth.
I think, also, that we must remember that the power of
economic decision in this country rests with millions of free
people.

With this freedom goes responsibility.

These responsibi-

lities rest upon the government, upon businessmen, workers, farmers,
investors, and every citizen who participates in our way of life.
This very freedom imposes self-discipline and I think we will
rise to meet whatever disciplines are required of us;

and in the

long run we will avoid transient considerations and follow a
course of action that will provide necessary security and a betterj

(Insert table of estimates here)

akingj
'^n^~reveniie estimates

for the fiscal years 1958 and 1959
Calendar year

T95I"

1957
Personal income

$3^3 billion

$352 billion

Corporate profits

k2 billion

\2 billion

present period of adjustment is completed. We have the ingredients for a healthy economy and for one that will expand to
meet our needs. It would be a mistake, I feel, for anyone to
sell our dynamic economy short for any protracted period.
We have a current annual gross national product of more than
$430 billion. We have a growing population. We are constantly
improving our standard of living. We have, in addition, a
in our people and our government to use »**•-£-£: the
mechanisms at our command so as to employ our economic strength
in a way which will assure a reasonable rate of sustainable growth.
I think, also, that we must remember that the power of
economic decision in this country rests with millions of free
people. With this freedom goes responsibility. These responsibilities rest upon the government, upon businessmen, workers, farmers,
investors, and every citizen who participates in our way of life.
This very freedom imposes self-discipline and I think we will
rise to meet whatever disciplines are required of us; and in the
long run we will avoid transient considerations and follow a
course of action that will provide necessary security and a betterjjj

FOR USE AFTER MONDAY NOON, JANUARY IS?,' 1958
IHMmgl^-<^WrBlG STATEMENT BY TREASURY SECRETARY ANDERSON AT
BUDGET PRESS CONFERENCE, ROOM 4121, MAIN TREASURY, 11:30 A.M.,
SATURDAY, JANUARY 11, 1958
The President's budget recognizes the character of our
time by emphasizing the things we must do to remain strong
for the sake of peace in the world. It also recognizes our
continued determination to adhere to the principles of fiscal
soundness which contribute so much to the health of our
economy on which our adequate security is based.
Our efforts to keep militarily strong are underscored by
the increases in defense spending for the most modern forms
of weapons and decreased defense spending for military items
of declining importance. Our adherence to fiscal soundness
is underscored by the fact that in fiscal 1959 we will endeavor
to pay as we go for our necessary expenditures; that we propose to postpone, and in other cases reduce or eliminate
certain non-defense programs; and that we ask that present
tax rates be continued to contribute to paying as we go to
the maximum possible extent.
I believe that this budget represents proper and practical
recognition of our military need in the light of changed conditions, while recognizing the need to keep our economy strong
and growing so as to provide not only for the individual wellbeing of our people but the basic source of our military
strength.
We are currently estimating budget receipts for fiscal
1959 at $74.4 billion, an increase of $2 billion over our
current estimates for fiscal 1958. These estimates are based upon
certain assumptions which we must make in the budget processj^mfc*-^
whireh rah ou J ri , n n t. ha. ^4&m*&*WZt&^

TREASURY DEPARTMENT
Washington
FOR RELEASE AT 12 NOON EST,
Monday, January 13, 1958.

A-129

STATEMENT BY TREASURY SECRETARY ANDERSON
AT BUDGET PRESS CONFERENCE, ROOM 4121,
MAIN TREASURY, 11:30 A.M., SATURDAY,
JANUARY 11, 1958.
The Presidents budget recognizes the character of our
time by emphasizing the things we must do to remain strong for
the sake of peace in the world. It also recognizes our continued
determination to adhere to the principles of fiscal soundness
which contribute so much to the health of our economy on which
our adequate security is based.
Our efforts to keep militarily strong are underscored by
the increases in defense spending for the most modern forms of
weapons and decreased defense spending for military items of
declining importance. Our adherence to fiscal soundness is
underscored by the fact that in fiscal 1959 we will endeavor to
pay as we go for cur necessary expendituresj that we propose to
postpone, and in other cases reduce or eliminate, certain nondefense programs; and that we ask that present tax rates be
continued to contribute to paying as we go to the maximum possible
extent.
I believe that this budget represents proper and practical
recognition of our military need in the light of changed conditions, while recognizing the need to keep our economy strong
and growing so as to provide not only for the individual wellbeing of our people but the basic source of our military strength.
We are currently estimating budget receipts for fiscal 1959
at $74.4 billion, an increase of $2 billion over our current
estimates for fiscal 1958. These estimates are based upon certain
assumptions which we must make in the budget process.
In making the revenue estimates for the fiscal years 1958 and
1959 -the fol.lov7i.1g income assumptions for calendar years 1957 and
1958 were used:
Calendar year
Personal income
$3^3
billion
$352 billion
1957
155B
Corporate profits

42 billion

39
- 2 The current readjustments in the economy with which we are
all familiar are in part the consequences of a period of rapid
expansion during the past several years. These readjustments,
however, require us to scale down our earlier estimates of
receipts in the present fiscal year. On the other hand, I believe
very confidently in the continued growth of this Nation once the
present period of adjustment is completed. We have the
ingredients for a healthy economy and for one that will expand
to meet our needs. It would be a mistake, I feel, for anyone to
sell our dynamic economy short for any protracted period.
We have a current annual gross national product of more than
$430 billion. We have a growing population. We are constantly
improving our standard of living* W e have, in addition, a
sensitive willingness in our people and our government to use the
mechanisms at our cu.~aa.nd so as to employ our economic strength
in a way which will assure a reasonable rate of sustainable growth.
I think, also, that vie must remember that the power of
economic decision in this country rests with millions of free
people. With this freedom goes responsibility. These responsibilities rest upon the government, upon businessmen, workers,
farmers, investors, and every citizen who participates in our way
of life.
This very freedom imposes self-discipline and I think we will
rise to meet whatever disciplines are required of us; and in the
long run we will avoid transient considerations and follow a
course of action that will provide necessary security and a better
lot for the people. History records that in a number of countries
where the failure to observe sound fiscal and monetary policies
inflicted hardships and suffering on the people, the citizens
did not have the basic understanding and the self-discipline to
which I refer.
During the coming year our large gross national product
will include in addition to the private expenditures the
substantial government expenditures represented in this budget.
I believe that we will all be prudent and that we will all be
confident in the use of these great resources to our best
advantage both as individuals and as a Nation.
Realizing the enormous size of our task, we here in the
Treasury want to meet our responsibility in financing the
obligations of the government in a reasonable, flexible and
sensible manner.
First of all, we are going to pay for security for our
country, as such security is judged by the people in the best
position to know. We are going to regard o^.v position of
strength as a long-time requirement and think in terms of

- 3-

maintaining our security over an unknowable period of time.
We are going to try to assure the kind of economic strength and
development that is indispensable to our military security.
We will neglect neither, and the world should know it.1
Whatever choices are required, we will make them. Whatever
discipline is called for, we will exercise it as a free people
should.
This budget has had long and arduous consideration by the
people responsible for our military security and for our other
essential programs. We believe it is a practical and prudent
budget that will add significantly to our military strength
while recognizing the fundamental importance of a healthy growing
economy not only to support that security but provide better
living for our people.

oOo

RELEASE A. H. NEWSPAPERS,
Tuesday, January lit, 1958.

The Treasury Department announced last evening that the tenders for #1,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated January 16 and to mature April
1958, which were offered on January 99 were opened at the Federal Reserve Banks on
January 13.
The details of this Issue are as follows:
Total applied for - $2,681,857,000
Total accepted
- 1,700,522,000

(Includes $440,996,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High
Low

- 99*350 Equivalent rate of discount approx. 2.$11% per annum
- 99.344
"
n
n
n
»
2.$9$% H
«

Average

- 99.345

2.$91% "

(93 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

I
48,144,000
1,796,895,000
43,772,000,
71,910,000
28,928,000
64,314,000
293,693,000
44,830,000
20,703,000
65,882,000
52,622,000
150,164.000

I
27,204,000
1,031,151,000
26,860,000
64,209,000
22,797,000
57,831,000
194,175,000
44,535,000
19,085,000
50,835,000
41,882,000
119,958.000

$2,681,857,000

$1,700,522,000

TOTAL

(M4

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, January l4, 1958 *

A-130

The Treasury Department announced last evening that the tenders for $1,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated January 16 and to mature April 17
1958, which were offered on January 9, were opened at the Federal Reserve Banks on
January 13.
The details of this issue are as follows:
Total applied for - $2,681,857,000
Total accepted
- 1,700,522,000

(includes $440,996,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High
Low

- 99.350 Equivalent rate of discount approx. 2.$11% per annum
n
-99.344
"
" M
" 2^9# "
"

Average

-99.345

-»tf

(93 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

$ 48,144,000
1,796,895,000
43,772,000
71,910,000
28,928,000
64,314,000
293,693,000
44,830,000
20,703,000
65,882,000
52,622,000
150,164,000
$2,681,857,000

$
27,204,000
1,031,151,000
26,860,000
64,209,000
22,797,000
57,831,000
194,175,000
44,535,000
19)085,000
50,835,000
41,882,000
119.958,000
01,700,522,000

TOTAL

- 3 -

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

be interest. Under Sections 454 (b) and 1221 {$) of the Internal Revenue Code o
1954 the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereun

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

- 2 -

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

Those sub-

Settlement for accepted

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

January 25, 1958

, in cash or other immediately available funds

or in a like face amount of Treasury bills maturing

January 25, 1958

Cash

• *y

TREASURY DEPARTMENT
Washington

Li
/ '

/ _J

A. M.
3XE RELEASE/ M0RKXK5 NEWSPAPERS,
Tuesday, January 14, 1958
m

and will mature April 24, 1958 , when the face

amount will be payable without interest. They will be issued in bearer form only

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/tffljx ofclock p.m., Eastern Standard time, Friday, January 17, 1958

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

the price offered must be expressed on the basis of 100, with not more than thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

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

RELEASE A.M. NEWSPAPERS,
Tuesday. January 14. 1958.

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 23 1958
In the amount of $1,600,748,000, 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 23, 1958.
and will mature April 24, 1958,
when the face amount will be
payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern Standard time,
Friday, January 17, 1958.
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^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 in
or full
less without
stated price
price from
any one
bidder will
be
accepted
at the average
(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 23, 1958, in cash or other Immediately available funds
or in a like face amount of Treasury bills maturing January 23, 1958,
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

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, January 14, 1958.

A-132

The Treasury announced last evening a 15 percent allotment on subscriptions for more than $10,000 for the current cash offering of 5-5/8
percent Federal National Mortgage Association Notes of Series ML-1960-A.
None of these subscriptions will be allotted less than $10,000 and subscriptions for $10,000 and less will be allotted in full.
Reports received from the Federal Reserve Banks show that subscriptions total about $5,215 million.
Details by Federal Reserve Districts as to subscriptions and allotments will be announced when final reports are received from the Federal
Reserve Banks.

. £<y,if Ki
^*~*"-^->K.

;g^~vvu-v^ v.
:
/

'.. ,-;'
lUZs^y^

.....
'^-w^"**^

/\-

_/ 3

fy\ ^.M-<r~-orW<m-*~-*w'••• •'

Treasury Secretary Anderson today submitted to the
Congress draft legislation^which if enacted would provide
a temporary Increase in the debt limit ,©*-$^-=*wrlllon.
A
r\
The request was made in correspondence to Chairman Wilbur
D. Mills of the House Committee on Ways and Means and
Congressman Daniel A. Reed,

MJLUBJKIIJL

ranking minority member

of the Committee^ w4l^<,^r^o-Sfe|5^^cTed toint rt*c^tt^^*1TaMell^~?lia 1
V

Copies of this correspondence also hapbeen sent by
Secretary Anderson to Senator/ Harry F. Byrd, Chairman, and
Senator Edward P. Martin, ranking minority member of the
Senate Fifnance Committee which would handle such legislation
in the Senate.
K&K%fty%KjfcXXKfl&%ggH President Eisenhower in the 1959
budget message said that '*the present limit of $275 billion
is too restrictive in view of rising defense expenditures and
of the need for more flexibility to permit efficient and
economical debt management." / Secretary Anderson told his
_W^«n»Bi~T>il.|

budget press conference, nirrfliiirrTtff^^

in discussing

the debt limit situation, that a major consideration was "when
we j^t_ojir_^Jtaxes, and the rate at which we expend our funds"
(^Secretary AndersonMn
explainging the need for a temporary
v,
y

^ ~«»*w,(l !

**^.

increase in the debt limi1lM-»i*we seek to manage the debt of
the great proportions that we have, we ought to have the ability
to use the best and most efficient mechanisms that we can and
that some consideration has to be given to a sufficient flexibility
that will allow us the capacity to do as good a job as we can in
the management of the debt."

TREASURY DEPARTMENT

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, January 14, 1958.

A-133

Treasury Secretary Anderson today submitted to the Congress
draft legislation which if enacted would provide a temporary
increase of $5 billion in the public debt limit.
The request was made in correspondence to Chairman Wilbur
D.. Mills of the House Committee on Ways and Means and
Congressman Daniel A. Reed, ranking minority member of the
Committee,
Copies of this correspondence also have been sent by
Secretary Anderson to Senator Harry F. Byrd, Chairman, and
Senator Edward P. Martin, ranking minority member, of the
Senate Finance Committee, which would handle such legislation
in the Senatem
President Eisenhower in the 1959 budget message said
that "the present limit of $275 billion is too restrictive in
view of rising defense expenditures and of the need for more
flexibility to permit efficient and economical debt management."
Secretary Anderson told his budget press conference, In
discussing the debt limit situation, that a major consideration
was "when we get our taxes, and the rate at which we expend
our funds." In explaining the need for a temporary increase
in the debt limit Secretary Anderson said: "As we seek to
manage the debt of the great proportions that we have, we ought
to have the ability to use the best and most efficient mechanisms
that we can and that some consideration has to be given to a
sufficient flexibility that will allow us the capacity to do as
good a job as we can in the management of the debt."

oOo

r — ."

- 2-

~)U

He served in the Illinois Reserve Militia during World War I, retiring
as first sergeant. Later he became a first lieutenant in the Arity Ifedical
Reserve Corps.
Mr. Stiles was born in Chicago June 27, 1892.

oOo

- /'34
Treasury Secretary Anderson today announced that he will appoint James
F. Stiles, Jr., of Chicago, as an Assistant to the Secretary and National
Director of the Treasury's Savings Bonds Division.
In taking over the direction of the Savings Bonds program, with full

responsibility for all of its activities throughout Hie country, Mr. Stiles
$ retiring as Chairman of the Board of Abbott Laboratories, of Chicago,
manufacturers of pharmaceuticals.
Mr. Stiles succeed^ John R. Buckley, magazine publishing and advertising
A
executive, who served as National Director for almost two years. Mr. Buckley
resigned in order to give more attention to his personal affairs.
Mr. Stiles has had an outstanding career as a business man and has been
prominent in civic and public service activities. He was President of the

Illinois State Chamber of Commerce from 194-5 to 1947; served for twelve yea

as General Chairman of the Lake County (Illinois) War Finance Committee; was

a Director of the Chicago Regional Planning Commission,* and a member of the
Industrial Panel of the War|fLabor Board. He is a past president of the
Chicago Chapter, National Association of Cost Accountants.
He has served as Trustee of Northwestern University, Chicago Wesley

Memorial Hospital, the Lake County Water District, the Illinois State Pensio
Laws Commission, the Abbott Fund and the Abbott Foundation, and the labor
Ifenagement Committee of the Department of Labor.
In 1953 Mr. Stiles received 1ke National Industrial Man Award of the
National Council of Industrial Management Clubs*

fyvy&v -w

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, January 15, 1958.

k-13k

Treasury Secretary Anderson today announced that he will
appoint James F. Stiles, Jr., of Chicago, as an Assistant to
the Secretary and National Director of the Treasury's Savings
Bonds Division.
In taking over the direction of the Savings Bonds program,
with full responsibility for all of its activities throughout
the country, Mr. Stiles will retire as Chairman of the Board of
Abbott Laboratories, of Chicago, manufacturers of pharmaceuticals.
Mr. Stiles will succeed John R. Buckley, magazine publishing
and advertising executive, who served as National Director for
almost two years. Mr. Buckley resigned in order to give more
attention to his personal affairs.
Mr. Stiles has had an outstanding career as a business man
and has been prominent in civic and public service activities.
He was President of the Illinois State Chamber of Commerce from
19^5 to 19^7, served for twelve years as General Chairman of the
Lake County (Illinois) War Finance Committee; was a Director of
the Chicago Regional Planning Commission; and was a member of
the Industrial Panel of the War Labor Board. He is a past
president of the Chicago Chapter, National Association of Cost
Accountants.
He has served as Trustee of Northwestern University,
Chicago Wesley Memorial Hospital, the Lake County Water District,
the Illinois State Pension Laws Commission, the Abbott Fund and
the Abbott Foundation, and the Labor Management Committee of the
Department of Labor.
In 1953 Mr. Stiles received the National Industrial Man
Award of the National Council of Industrial Management Clubs.
He served in the Illinois Reserve Militia during World War I,
retiring as first sergeant. Later he became a first lieutenant
in the Army Medical Reserve Corps.

oOo

53
ICM)RAHBPM TO MR, mBJU^ I* ICXM
the following transactions were made in direct and guaranteed securities
of the Government for Treasury investment/ and other accounts during ths
month of December, 1957*
Purchases $36,927,000.00

(Sgd) Charles j. Braonan

Chief, Investments Branch
Division of Deposits & Investments

TREASURY DEPARTMENT
— f t *

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, December 16. 1QD7'.
&**«—' ^ WodfiAf Jm*] , Jcr7\ . t*T( iqJY
rf~
I - J
During NnWmhrr 1957, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
purtJiuty
accounts resulted in net ^asjJL^c by the
Treasury Department of $G7jQfirlJj~iD0.

oOo

TREASURY DEPARTMENT

'^mmmmm^m^mmm^^^^^^^mmm^mmmmtmmm9mmmmm^m9m^mmm.^mmm^mmmmmmmmmmmmi^^m^

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 15, 1958.

A-135

During December 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 $33,325,000.

oOo

56
- 6 Simplification in the tax law and in tax computations are
important objectives. Our staffs are studying with great interest
the reports of the Advisory Groups to your subcommittee on income
taxation on technical aspects of the law concerning corporate
reorganization, partnerships, and the income of estates and trusts.
The 1954 Code made important changes in all of these fields.
Experience since its enactment may well have shown opportunities
for still further improvements to increase the fairness and simplify
the application of the laws in these difficult areas. Testimony
which you receive in your Hearings will be of help to us, as it will
doubtless be to you, in appraising the current proposals for change.
while I have no additional recommendations at this time for
major tax legislation, we shall continue to appraise situations as

they develop •»*» +v~--~»^n->*--4-Mf--? national. fXQDQffly, and in, the.
OT^a&AGmm^&kU&po^^ shall make such
j

recommendations as become appropriate ihu>ii>u tin IIIIIIIMI 1 ulmiiiil
We in the Treasury are, of course, following with great interest
~i*v S*vuu ft****
the material presented in these Hearings. I -H»w*tlB*sj_~BtfpwT__rTe^
help .in developing ^B-S8-tSJ8SSMi recommendations to you. In the meantime/* I-«s&£hy associates
be_ ready
_ in the Treasury)will
.„
and anxious
to be of such assistance as we can in working with you and your
staffs.

-0-0-0-0-0-0-0-

ias-t~r\uA>'58"\»,

l^m.

^C_-

W e have already advised the Committee that the
Treasury is agreeable to the application of the stop-gap
legislation concerning taxes to be applied against the income
of life insurance companies for the calendar year 1957. We
are giving a great deal of thought to the development of a fair
and equitable system of taxation that can be permanently
applied, and will be working cooperatively with your staff in
the development of concrete proposals which we hope to submit
to you in the near future.

-5were assumed to be valid at the time of the 1951 legislation, have
been held invalid where aAs. certificates do not have a determinable
market value. Thus, it is possible for the cooperative to receive jf
a deduction in computing its taxable income, while its members are
not taxable on the certificate they receive. While we are fully
aware of the important place which cooperatives occupy in the life
of our agricultural and farming communities, we "believe that some
single tax liability should be assumed by all who participate in the
business activities of the country, as was contemplated in the 1951
legislation and that legislation which is fair and reasonable, both
from the standpoint of the availability of retained earnings for
expansion and tax benefits to cooperative members, should be developed.
During the course of the deliberations of this Committee, the staff
of the Treasury will .wart to work cooperatively with the staffs of
A
your Committee in developing such legislation.

- kLast October, the Supreme Court denied a petition for certiorari in a series of cases dealing with the so-called cut-off point
for percentage depletion in the manufacture of bricks and cement.
The net result of the cases is to apply the percentage depletion
allowance to the price of finished manufactured products, bricks
and cement, rather than to the value of the clay and the cement
rock before it is manufactured. In both cases, the effect of the
decision is to increase the depletion deductions several-fold over
the amounts previously allowed under Treasury regulations. While
we support the principle of depletion for these materials, we do
not believe that depletion on this scale is reasonable or was
intended. The problem appears to arise from the application of the
phrase "the commercially marketable mineral product or products" in
the statute. I recommend the law he revised to prevent these excessive depletion deductions. The revenue loss in the two industries
directly covered by the cases is $- million a year. Auuilugmij

The proper taxation of cooperatives continues to be a troublesome problem. We have already called to your attention the fact that
a series of court decisions have made largely ineffective the 1951
legislation which was intended to -easwee that all cooperative income
would be taxed either to the cooperative or to its members as it was
earned. The Treasury rulings under which all patronage SSdeads in the
form of certificates were held to be taxable at their face value, which

consultation and cooperation with our staffs. Tie will always have our tax
laws and regulations under close,~fi___-3F continuous aaaBKS: observation
and will call to your attention any inequities that we observe*

60
- 3I am especially glad to recommend this tax relief for small
business because of the great importance of new and small companies
in the .American economy. Our country has grown strong in competition and in the introduction of new products and techniques. We
must have as many independent business concerns as possible because
each company is a separate center of initiative as well as a source
of livelihood for its employees and owners. Small businesses are a
real and important part of our American way of life. We believe that
the foregoing recommendations for tax changes will give
relief for the revenue loss involved.
tha^jthey- nfoy ^i^.sjqf£lcient-~4~^etu5
comp

quite pos^ibteT^IBr fact,
formaticp of new

ansion of exis
^ ,,,.,»»B*>l«««W ! »* w i B » < ' M

increase!

r the years.

Loopholes or unintended benefits are always a matter of concern.
They are particularly serious when tax rates have to be maintained at
high levels. It is particularly important that we maintain
^UMJ Aiti**^*-**!**/ 4^b&*+m,j
if
which should.be a source of national pride. This
gives added emphasis to the necessity of maintaining fairness and
equality in the application of our country's tax burden. H. R. 8381,
on which this Committee worked so long in the last session, and
which is now before the House of Representatives, is important legis-

« '

lation to close tax loopholes and make technical changes which, in
vcatiSuiD

a"i^mkrmmXif^^
iffijH PTAjf^frwyb i f l M A t T n n #

pointftifiorfyrniT^iTf\^ciirfmi:in • llr t h e f u t u r e . — .

m
(>,.yy^rffcy*> aA-^if^f^^r* £t^d

t*/-xe>-?\.*",\
£2*-~*f
A<rt-tx«hjUn3^^
V%••1-"%m*mf £i&ytmJ><9*-S-X.
*£s^**i
m4*mmtf*Jmm1«\

°*4AA

Of
- 2 -

I regret that a continuation of existing rates has to be my
first recommendation to you on tax matters, because I am anxious
for tax reductions of various sorts, as I know you are, and as the
people of the country are. But under the conditions as they are
foreseen at present, such tax reductions do not seem prudent. If
present rates are continued, and if business activity resumes its
upward growth in the flgeg^^^e^ as I believe it will, we estimate
h

a small surplus for the fiscal year 1959.

/ \y I am glad to say that we have been able to provide in the
i tAf Ks.y',
^ *Q$*fJ*" budget for the tax relief measure for small business which the
(\ President recommended in his letter to the Chairman of this Committee
last July 15. There was not, of course, time to give full consideration to these proposals in the last session of the Congress, but we
do recommend that they receive attention sef_±=aK--i*R in the present
session. Specifically those recommendations were:
K - {] f^ (1) Tnat businesses be given the ri^it to utilize,
\P"
|#
''for purchases of used property not exceeding $50,000 in
.
^*'
/ any one year, the formulas of accelerated depreciation
§t
y^L^ i
j *bat were made available to purchasers of new property $> < 0
*»
J
' by the Internal Revenue Code of 1954.
^
9

§o

*)
*'

°' 4
v_,
f

71
(2) That
with,of
say,
tentaxed
or fewer
stockholders
becorporations
given the option
being
as if'
they vere partnerships.

'
(,

*>
(3) That the taxpayer be given the option of pay- -> 0»
ing the estate tax over a period of up to ten years in -" *
cases where the estate consists largely of investments
in closely held business concerns.
(4) That original investors in small business be
given the right to deduct from their incomes, up to
^
some specified maximum, a loss, if any, realized on a A '
^
stock investment in such business. At the present time
\3A^
the deduction of such losses from income is subject to
the general limitation on net capital losses of $1,000.

0*°'

x :

• CT~^s~-ttaryTgta-^

I am glad to have this opportunity to meet for the first time
with this distinguished committee. The distinctive position of the
House Committee on Ways and Means is known to all students of our
governmental processes. My predecessor has told me of his very
pleasant relations with you and of your assistance to him in discharging his responsibilities in the Treasury. I look forward to
continued close collaboration with you in developing such tax and
other legislation as becomes appropriate within your jurisdiction.
You have already received the President's Budget Message. The
increased requirements for expenditures for security, even after
the strictest reviews of expenditures in all other programs, bring
total estimated spending to a level such that it is necessary to
recommend a continuation of the corporation income tax and the excise
tax rates, which, in the absence of legislation, would be reduced on
CO
July 1. She reduction in the normal corporation income tax rate from
30 percent to 25 percent, which would also have the effect of reducing
the rate on income above $25,000 from 52 percent to k7 percent, would

0)
involve a revenue loss of about $2 billion a year,

-fee reduction in

the excise tax rates on liquorjjtubat/w and automobilLes would involve

an additional revenue loss of over $0t© million.

Length of Service Awards
/

Silver pin, foi/l^ years or more service

TREASURY DEPARTMENT
Washington

Statement by Secretary of the Treasury Robert B. Anderson
Before House ^ays and Means Committee, 10 A.M. E.S.T.
Thursday, January 16, 195>8

64
TREASURY DEPARTMENT
Washington
Statement by Secretary of the Treasury
Robert B. Anderson Before House Ways and
Means Committee, 10 A.M. E.S.T.
Thursday, January 16, 1958
I am glad to have this opportunity to meet for the first time
with this distinguished committee. The distinctive position of the
House Committee on Ways and Means is known to all students of our
governmental processes. My predecessor has told me of his very
pleasant relations with you and of your assistance to him in
discharging his responsibilities in the Treasury. I look forward
to continued close collaboration with you in developing such tax
and other legislation as becomes appropriate within your
jurisdiction.
You have already received the President's Budget Message.
The increased requirements for expenditures for security, even
after the strictest reviews of expenditures in all other programs,
bring total estimated spending to a level such that it is
necessary to recommend a continuation of the corporation income
tax and the excise tax rates, which, in the absence of legislation, would be reduced on July 1, A reduction in the normal
corporation income tax rate from 30 percent to 25 percent,
wnich would also have the effect of reducing the rate on income
above $25,000 from 52 percent to 47 percent, would involve a
revenue loss of about $2 billion a year. A reduction in the
excise tax rates on liquor, cigarets and automobiles would
involve an additional revenue loss of over $900 million.
I regret that a continuation of existing rates has to be my
first recommendation to you on tax matters, because I am anxious
for tax reductions of various sorts, as I know ycu are, and as the
people of the country are. But under the conditions as they are
foreseen at present, suoh tax reductions do not seem prudent. If
present rates are continued, and if business activity resumes its
upward growth during the year,
as I believe it will, we
estimate a small surplus for the fiscal year 1959.
I am glad to say that we have been able to provide in the
budget for the tax relief measures for small business which the
President recommended in his letter to the Chairman of this
Committee last July 15. There was not, of course, time to give
full consideration to these proposals in the last session of
the Congress, but we do recommend that they receive attention
A-136

- 2 in the present session.
were:

Specifically those recommendations

(1) That businesses be given the right to utilize,
for purchases of used property not exceeding $50,000 in
any one year, the formulas of accelerated depreciation
that were made available to purchasers of new property
by the Internal Revenue Code of 1952*.
(2) That corporations with, say, ten or fewer
stockholders be given the option of being taxed as if
they were partnerships.
(3) That the taxpayer be given the option of
paying the estate tax over a period of up to ten
years in cases where the estate consists largely of
investments in closely held business concerns.
(4) That original investors in small business be
given the right to deduct from their incomes, up to
some specified maximum, a loss, if any, realized on a
stock investment in such business. At the present
time the deduction of such losses from income is
subject to the general limitation on net capital
losses of $1,000.
I am especially glad to recommend this tax relief for small
business because of the great importance of new and small companies
in the American economy. Our country has grown strong in
competition and in the introduction of new products and techniques.
We must have as many independent business concerns as possible
because each company is a separate center of initiative as well as
a source of livelihood for its employees and owners. Small
businesses are a real and important part of our American way of
life. We believe that the foregoing recommendations for tax
changes will give important relief for the revenue loss involved.
Loopholes or unintended benefits are always a matter of
concern. They are particularly serious when tax rates have to be
maintained at high levels. It is particularly important that we
maintain respect for our voluntary tax system, which should
continue to be a source of national pride. This gives added
emphasis to the necessity of maintaining fairness and equality
in the application of our country's tax burden. H. R. 0381,
on which this Committee worked so long in the last session, and
which is now before the House of Representatives, is important
legislation to close tax loopholes and make technical changes
which was developed in consultation and cooperation with our
staffs. We will always have our tax laws and regulations under
close, continuous observation and will call to your attention any
inequities that we observe.

66
- 3Last October, the Supreme Court denied a petition for
certiorari in a series of cases dealing with the so-called
cut-off point for percentage depletion in the manufacture of
bricks and cement. The net result of the cases is to apply the
percentage depletion allowance to the price of finished
manufactured products, bricks and cement, rather than to the
value of the clay and the cement rock before it is manufactured.
In both cases, the effect of the decision is to increase the
depletion deductions several-fold over the amounts previously
allowed under Treasury regulations. While we support the
principle of depletion for these materials, we do not believe
that depletion on this scale is reasonable or was intended. The
rroblem appears to arise from the application of the phrase
"the commercially marketable mineral product or products" in
the statute. I recommend the law be revised to prevent these
excessive depletion deductions. The revenue loss in the two
industries directly covered by the cases is about $50 million
a year.
The proper taxation of cooperatives continues to be a troublesome problem. We have already called to your attention the fact
that a series of court decisions have made largely ineffective
the 1951 legislation which was intended to assure that all
cooperative income would be taxed either to the cooperative or
to its members as it was earned. The Treasury rulings under
which all patronage refunds in the form of certificates were
held to be taxable at their face value, which were assumed to be
valid at the time of the 1951 legislation, have been held invalid
where the certificates do not have a determinable market value.
Thus, it is possible for the cooperative to receive a deduction
in computing its taxable income, while its members are not
taxable on the certificate they receive. While we are fully
aware of the important place which cooperatives occupy in the life
of our agricultural and farming communities, we believe that some
single tax liability should be assumed by all who participate in
the business activities of the country, as was contemplated in
the 1951 legislation and that legislation which is fair and
reasonable, both from the standpoint of the availability of
retained earnings for expansion and tax benefits to cooperative
members, should be developed. During the course of the
deliberations of this Committee, the staff of the Treasury will
be available to work cooperatively with the staffs of your
Committee in developing such legislation.
We have already advised the Committee that the Treasury is
agreeable to the application of the stop-gap legislation
concerning taxes to be applied against the income of life
and
development
equitable
a
in
insurance
great
the
will
near
deal
be
companies
system
future.
working
ofofconcrete
thought
of for
taxation
cooperatively
proposals
the
to the
calendar
that
development
which
with
canyear
be
your
we
permanently
1957.
hope
of
staff
a to
fair
We
in
submit
are
the
and
applied,
giving
to you

- 4Simplification in the tax law and in tax computations are
important objectives. Our staffs are studying with great
interest the reports of the Advisory Groups to your subcommittee
on income taxation on technical aspects of the law concerning
corporate reorganization, partnerships, and the income of
estates and trusts. The 1954 Code made important changes in
all of these fields. Experience since its enactment may well
have shown opportunities for still further improvements to
increase the fairness and simplify the application of the laws
in these difficult areas. Testimony which you receive in your
Hearings will be of help to us, as it will doubtless be to you,
in appraising the current proposals for change.
While I have no additional recommendations at this time for
major tax legislation, we shall continue to appraise situations
as they develop and shall make such recommendations as become
appropriate.
We in the Treasury are, of course, following with great
interest the material presented in these Hearings. I am sure
these data will be of help to us in developing recommendations
to you. In the meantime, my associates in the Treasury and I
will be ready and anxious to be of such assistance as we can in
working with you and your staffs.

oOo

- 3Mr. Cantrall is a veteran of World War I, and is active
in the American Legion and the Forty & Eight.

- 2 He Is a member of the American Bar Association and has
been active in the ABA Section &n Taxation, Section <&n
on
Corporation, Banking and Business Law, Section/Bar Activities,
Committee on Resolutions, and Special Committee on Lawyers
in the Armed Forces.
His memberships include the American Law Institute,
American Judicature Society, National Advisory Counsel of
the Practising Law Institute, the Harrison County and
West Virginia Bar Associations and West Virginia State Bar.
He has served as President of the Harrison County Bar
Asso.; as President and Chairman of the Board of Governors
of the West Virginia State Bar, and as President of the
West Virginia Tax Institute, Inc.
He represented the West Virginia State Chamber of
Commerce on the Federal Finance Committee of the Council
of State Chambers of Commerce, and was Chairman of the
Council's Federal Tax Committee.

He was Chairman of the

Committee on Government and Taxation of the West Virginia
State Chamber of Commerce from 1951 to 1954.
He has been a member of the Committee of Twenty-two,
the American Law Institute —

American Bar Association Committee

on Continuing Legal Education. Under the sponsorship of this
Committee he has lectured before many professional groups on
the problems of small business and on law office management.
He has contributed numerous articles to legal publications.

7i)

mttftT W

Mm£m&bh

^^^^mym^CmmJ^^f^^^^^^^y

/ £ /f / '/

•^—

oly-^7^., ' t Zm—
Treasury Secretary Anderson today announced the

m>--

appointment of Arch M. Cantrall, a tax lawyer of Clarksburg,
West Virginia, as Chief Counsel of the Internal Revenue
Service.

He succeeds Nelson P. Rose of Cleveland, Ohio, whom

President Eisenhower has nominated to be General Counsel of
the Treasury Department.
Mr. Cantrall has been senior partner in the law firm of
Stathers and Cantrall, of Clarksburg.

He is relinquishing

the partnership to accept the Revenue Service post.
The Chief Counsel serves also as an Assistant General
Counsel of the Treasury Department.
Mr. Cantrall was born in Danville, Kentucky, August 30,
1896.

He attended high sehool at Princeton, N.J.,' was a

student at Parsons College, Fairfield, Iowa in 1916-1917*

**^—

was graduated from West Virginia University with the degree
of A.B. in 1922 and the degree of LL.B. in 1925.
He was admitted to the West Virginia bar in 1925* and
thereafter was admitted to practice before the Supreme Court
of the United States, the United States Court of Appeals for
the Fourth Circuit, the United States District Court for the
Northern District of West Virginia, the Tax Court of the
United States, the Interstate Commerce Commission
and the Treasury Department.

TREASURY DEPARTMENT
•m••wmmmmmmmmmmmmma—mmmmmmmmna~M~«~aH~~fl~«iHW«~M~aBaiHH~*M~a—H^IH—MI

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, January 16, 1958.

A-137

Treasury Secretary Anderson today announced the appointment
of Arch M. Cantrall, a tax lawyer of Clarksburg, West Virginia,
as Chief Counsel of the Internal Revenue Service. He succeeds
Nelson P. Rose of Cleveland, Ohio, whom President Eisenhower has
nominated to be General Counsel of the Treasury Department.
Mr. Cantrall has been senior partner in the law firm of
Stathers and Cantrall, of Clarksburg. He is relinquishing the
partnership to accept the Revenue Service post.
The Chief Counsel serves also as an Assistant General Counsel
of the Treasury Department.
Mr, Cantrall was born in Danville, Kentucky, August 30, 1896.
He attended high school at Princeton, N.J., was a student at
Parsons College, Fairfield, Iowa in 1916-1917; was graduated from
West Virginia University with the degree of A.B. in 1922 and the
degree of LL#B. in 1925.
He was admitted to the West Virginia bar in 1925* and thereafter was admitted to practice before the Supreme Court of the
United States, the United States Court of Appeals for the Fourth
Circuit, the United States District Court for the Northern
District of West Virginia, the Tax Court of the United States,
the Interstate Commerce Commission and the Treasury Department.
He is a member of the American Bar Association and has been
active in the ABA Section in Taxation, Section in Corporation,
Banking and Business Law, Section on Bar Activities, Committee on
Resolutions, and Special Committee on Lawyers in the Armed Forces.
His memberships include the American Law Institute, American
Judicature Society, National Advisory Counsel of the Practising
Law Institute, the Harrison County and West Virginia Bar
Associations and West Virginia State Bar.
He has served as President of the Harrison County Bar Asso,;
as President and Chairman of the Board of Governors of the
West Virginia State Bar, and as President of the West Virginia Tax
Institute, Inc.
He represented the West Virginia State Chamber of Commerce on
the Federal Finance Committee of the Council of State Chambers of
Commerce, and was Chairman of the Council's Federal Tax Committee.

72
- 2 He was Chairman of the Committee on Government and Taxation of
the West Virginia State Chamber of Commerce from 1951 to 1954.
He has been a member of the Committee of Twenty-two, the
American Law Institute — American Bar Association Committee
on Continuing Legal Education. Under the sponsorship of this
Committee he has lectured before many professional groups on
the problems of small business and on law office management.
He has contributed numerous articles to legal publications.
Mr. Cantrall is a veteran of World War I, and is active in
the American Legion and the Forty & Eight,

oOo

-9 ~SJBk™f~

/ O

Vim want to re-emphasiae that we are now at the p#rlo# o£ the year
when the Treasury find* itself In a most difficult position and at m time
when we are facing major financing operations. W© respectfully urge,
therefore, that the Congress give prompt consideration to this matter.
We at the Treasury assure you that we will exert all our abilities
to achieve the utmost economy in governmental operations and to manage
the public debt as bast we can in the national interest.

74
~$m

-f isaal year. Thee© collections of corporate taxes are gradually being
leveled off, but there are still large seaeonal fluctuation*. Vn4*r these
circumstances, it is necessary for the Treasury to burrow targe sums
in the July~Becember period to meet expenditures, and to pay off such
borrowings in the January*June period, even in year© when we have
balanced budgets. (Charts 4>r-$F *n& w show the semiannual distribution
of budget expenditures, receipts, and surplus or deficit for recent years,
including estimates for the fiscal year If Sf.}
It is difficult to make precise month-to-month forecasts which
reflect all operations of the Government, including collection el a great
many types of revenues, the rates of expenditures under the prograraftof
each agency, the issue # and retirement of our public debt obligations,
and all of the multitude of operations reflected in the total inflow and outflow of the Treasury. We have, however, made estimates of the public
debt and cash balances which are based upon our best Judgment as of the
moment, and I am submitting for your information these figures in the
attached Table 3. These figures assume maintaining mid-month and
end-of-month cash balances of $3.5 billion and for an allowance of $3.0
billion for flexibility in financing and for contingencies.

7
-?Scs&e aawfc est
• * ^ S S - - M P jBnOm*m W ^9\*mm

m m*M at afi tinaae the Treasury is faced
Am abjective «f **m**\ A * e * i pelicyieta

lathe a r e * ef

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est Sjsj^h
n

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^r ^ ^ n s | ^ ~ B W ^ M K _ p

'••MHS-^I^^WS*

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fn JIH^JSJ nils tetikesesjrlisjt d^gitHi%f/ sss§ efttfr Use. sjesjaHsej.

mom

a a d ia aceordnftre v4*h the rewdttiene lsfttfJs j» i m i H ,

W » saamltf

as far a s p o a a i U e leave the c-arket* freerfeesheer* n e w flnsnrtag a y
east local |*o var.tfnftate ajsjsft %mmmmm

heeiweaese.

,^1. c

T h e circ eaas tancaa which I have eetttee 4 i» c « jadgraeaft, raqaige a
^feret-gjoa the pre rout statutory deht Umitatieit. W e w i U etitl
in fiscal year 195* a continuation o£*A\m aeaaoaal peaaa in the
cellectiea m€ mmpmmm*

i n c o m e taa&es/

As an example of oar tight posiUon, during early February
our balances in eoamarcUl banks, lass withdrawal nonces, may be
«s low as $ WD million — or less than aa average day** di3biirse«aata.
It is too early to make precise day-to-day projections of
our cash balances through liarch, but at present It appears It may
be necessary to resort to substantUi direct borrowing from the
Federal Reserve (if there is authority under the debt limitatiofi) In
view of heavy peynieats, heading Interest, and maturing securities
due on March 15. Proceed* frees corporate tax collections do not
become available In large volume to meet espend~&ares until March IS
^thereafter.
Qmm of the

ET^OS* series* difficulties

encountered b& the Treasury

In operating under the Jmmrit limltatloc Is Hie problem of carrying
out our financing la an orderly and economical manner. A Urge
portion of our public debt Is made up of securities with relatively
short maturity. More than $ W% bHUco of Treasury bills come doe
within the Best 90 days and more than $ 50 billion of Treasury certificates, net*s aad bonds are coining due la the calendar year VA-bh.
(Bee Attached Table 2 and Charts 3 aad 4 O R the •oiua-j© of Treasury
financing.)

-5-

Primarily to take care of the uneven flow of corporate tax
collections, it was necessary to increase temporarily the $ 275 billion
debt limitation to $ 281 biLion for the year ending June 30, 1955.
This limit was continued until June 30, 1956, when the temporary
increase was reduced to $278 billion for the year ending June 20, 1957.
Since June 30, 1957, we have been operating under a limitation again
of $2v 5 billion. (See Table 1, which outlines these changes, and
Chart 2, which compares the debt outstanding in recent years with
the debt limit.)
Total cash balances in Federal Reserve Banks and commercial
banks (tax and loan accounts) were down to $ i. 6 billion in mid*January,
and are estimated to be about $1.5 billion in mid-February. Here 1
would like to expgUn that in order to h*ve cash in the Federal Reserve
Banks with which to pay what we anticipate in drawings against the /
Treasury, we are required to draw out of our accounts in the commercial
banks (known as tax and loan accounts) sufficient amounts of money in
advance to injure that there will be adequate cash on hand to meet our
expected obligations. While the deposits carried in commercial banks
are on demand, there are approximately 11,000 banks involved, and the
~y,—

physical problem of handling the change of deposits from the commercial
banking system to the Federal Reserve Banks involves a lag of several
days.

78
-4bonds was changed from one based upon the amount of bonds issued
to one based upon the amount of bonds outstanding. In 19S8, the
separate authorities applicable to different classes of public debt
obligations were consolidated under one limitation applicable to all
public debt obligations outstanding under the Second Liberty Bond
Act, as amended. The limitation established at that time was
$45 billion, when our fjpblic debt amounted to about $ 37 billion.
This limit was later raised to $49 billion.
Early in 1941, before this nation had become actively involved
in World W a r II, the debt limitation was increased to $ 65 billion and
the public debt was about $ 4 6 billion. During the period from 1942
until 1945 the debt limitation was increased each year by substantial
amounts until it reached $ 300 billion on April 3, 1945, when our
public debt amounted to about $234 billion.
After the close of World W a r n, the limitation was reduced
from $ 300 billion to $ 27© billion in June 1946. At that time our total
debt amounted to about $ 268 billion, and the balance in the general fund
of the Treasury amounted to more than $ 14 billion.
Changes during these periods consistently provided larger
margins between the outstanding debt and the successive limits than
now exist or which would result from the temporary increase under
consideration.

73
*3Under our Constitution, the Congress has the power to borrow
money on the credit of the United States and this power has tradit ionally bmrnja delegated to the Secretary of the Treasury. The Congress
has adopted various means of exercising control over the power which
it delegates. The power to borrow money cannot be exercised without
regard to the powers of Congress to lay and collect taxes and to
appropriate monies from the Treasury.
Prior to World W a r I the public debt amounted to about $ 1-1/4
billion. U p to that time it was customary for the Congress to enact
specific laws each time the Treasury was authorised to borrow money,
which was at infrequent intervals. This procedure became outmoded
in meeting requirements for borrowing due to heavy expenditures in
World W a r I. In 1917 the Treasury had general authority to issue bonds
subject to a limitation based upon the total amounts of issues without
regard to interim retirements. W e had another authority to issue
certificates of indebtedness bm*d upon the amount outstanding. During
the period from 1918 to 1921 the Treasury's borrowing authority was
increased and extended to include authority to issue Treasury notes, as
well as bonds and certificates of indebtedness.
In 1929 the authority was further extended to permit the issuance
of Treasury biHs. In 1935, after further increases in amounts of
borrowing authority in 1931 and 1914, the limitation applicable to Treasury

8U
. 2After I assumed my responsibilities as Secretary of the Treasury
last summer, I reviewed the situation confronting the T'Saeuif and
concerned with Hie small

then ^n^i^sf^^irmtrfl e_tis±f
i'^mm>^rw*~m

^ w ^ v ^ w ^ w i r i f n m * ^mrm9-%wmwm^jK

the forecasts of our financial requirement* daring this fiscal
year and the statutory debt limitation. We notified thia
the Senate Finance Committee that 1 wee** do all la amy power to operate
under the $275 billion iij.iitation. At mmt time, the budget for the fiscal
year if SS atUl projected a surplus of mmmm than $i-l/a billion. Since
then, as yen know, increased defense expenditures, coupled ^ith a less
favorable outlook for rewsaea, have caused us to project a budget
deficit of $400 million, or a net decline of approximately U billion from
our position last s-asuner •
We have been able to discharge our obligations vdthin 1
limit during the intervening period only by ^^i^ftH^ cash
^^m^^**mM •^"^r-^K-pp^^p-e^ Wr ^^ VSHSI e*e$s^sss^pa( • we mft SsjHeW^P e^eseP-sV J§H~P <ee*s^B'*^B*ve9t J~flH*

and we believe that with eeene fi*_abiiity we would have
better able to taanage the pubUe debt to a better advantage for the
ptibiic taie*ei£lfThe corobin*d cash inflow and outflow of the Treeewy
on ail accounts during fiscal year 1957 amounted to ever $400
We disburse approximately $1.5 billion in an average five-day
Has? badge! expenses, and our caah frelnnff-ti *****
that level on several occasions. (See Chart I, which
vith Treasury cash balances.)

srATrafmyr B¥j9sYsfl)pi^
&.M^mil$ ImUmWULm T Q J^I^§rTm

BTAWfemttlmBy

yPfeO^TION

I a m glad to have this cp-ortiuiity to review with the Committee
the tatus of the statutory Umitation on the pubUc debt. The %mi®m&i
limitation of $ 27b billloa is contained hi the Second Liberty Bond Act,
as amended, w h k h is the current authority mi the Treasury to issue

p*^**t*U»»M. H.R.^^I^«th8Co«B~tt«fer
its coaslderation, would provide a temporary increase of $ 5 billion
in this limit until June 30, 1969,
I want to mafee clear at the outset thatfeeneed for a debt limit
increase is based on:
i« The fact that cash balances have been running
dangerously low, as I will show in detail later.
ft* There is need for mors flexibility for
efficient and economical management of the debt.
3. £^en vvit^i a b^anced budget there will still be
large seasonal fluctuations in reeeiets which
tasks operations under the $ 275 billion limitation
mostd&ioult*
This request, made within the framework of our 1959 budget
estimates lor Tmvmmi* m& expenditures, emphasises not eri^ muchm®4M

fiexibUity as Outlined above, but takes Into accou

which might develop in a world i U M with uncertainties*

O £-m

- 2 our financial requirements during this fiscal year and the
statutory debt limitation. We notified this Committee and
the Senate Finance Committee that we would do all in our power
to operate under the $275 billion limitation. At that time,
the budget for the fiscal year 195^ still projected a
surplus of more than $1-1/2 billion. Since then, as you
know, increased defense expenditures, coupled with a less
favorable outlook for revenues, have caused us to project
a budget deficit of $400 million, or a net decline of
approximately $2 billion from our position last summer.
We have been able to discharge our obligations within
the debt limit during the intervening period only by
maintaining cash balances which have been distressingly low
ltF'""tiniTei5T-*-"%e^
margin for contingencies^ as*d\^e
believe that with some^ flexibility we would have been better
able to manage the public debt to a better advantage for the
public interest.
The combined cash inflow and outflow of the Treasury on
all accounts during fiscal year 1957 amounted to over
$400 billion. We disburse approximately $1.5 bjULlion^in an
average five-day week for budget <%.xpfflia.fitfH^'^^^u^'^sf" "
balance has been approximately at that level on-several
occasions. (See Chart 1, which compares average monthly
budget expenditures with Treasury cash balances.)
Under our Constitution, the Congress has the power to
borrow money on the credit of the United States and this
power has traditionally been delegated to the Secretary of
the Treasury. The Congress has adopted various means of
exercising control over the power which it delegates. The
power to borrow money cannot be exercised without regard to
the powers of Congress to lay and collect taxes and to
appropriate monies from the Treasury.
Prior to World War I the public debt amounted to about
$1-1/4 billion. Up to that time it was customary for the
Congress to enact specific laws each time the Treasury was
authorized to borrow money, which was at infrequent intervals.
This procedure became outmoded in meeting requirements for
borrowing due to heavy expenditures in World War I. In
1917 the Treasury had general authority to issue bonds
subject to a limitation based upon the total amounts of issues
without regard to interim retirements. We had another authority
to Issue certificates of indebtedness based upon the amount
outstanding. During the period from 1918 to 1921 the
Treasury's borrowing authority was increased and extended to
include authority to issue Treasury notes, as well as bonds
and certificates of indebtedness.

TREASURY DEPARTMENT
Washington

Statement by Treasury Secretary Anderson
before House Ways and Means Committee on
H.R. 9955 and H.R. 9956, bills to amend
the Statutory Debt Limitation, 10 A.M.
E.S.T. Friday, January 17, 1958
I am glad to have this opportunity to review with the
Committee the status of the statutory limitation on the
public debt. The present limitation of $275 billion is
contained in the Second Liberty Bond Act, as amended, which
Is the current authority of the Treasury to issue public
debt obligations. H.R. 9955 and H.R. 9956, now before the
Committee for its consideration, would provide a temporary
increase of $5 billion in this limit until June 30, 1959.
I want to make clear at the outset that the need for a
debt limit increase is based on:
1. The fact that cash balances have been running
&&4**&4L nlumcjiiivi'nini 1 y low, as I will show in detail later.
2. There is need for more flexibility for more
efficient and economical management of the
debt.
3. Even with a balanced budget there will still be
large seasonal fluctuations in receipts which
make operations under the $275 billion limitation
most difficult.
This request, made within the framework of our 1959 budget
estimates for revenue and expenditures, emphasizes not only
much-needed flexibility as outlined above, but takes into
account contingencies which might develop in a world filled
with uncertainties.
W^L,
After I assumed my/responsibilities as Secretary of the
Treasury last summer, /p reviewed the situation confronting
the Treasury and became concerned with the small margin,
then indicated, which would exist between the forecasts of
A-138

TREASURY DEPARTMENT
Washington

Statement by Treasury Secretary Anderson
before House Ways and Means Committee on
H.R. 9955 and H.R. 9956, bills to amend
the Statutory Debt Limitation, 10 A.M.
E.S.T. Friday, January 17, 1958
I am glad to have this opportunity to review with the
Committee the status of the statutory limitation on the
public debt. The present limitation of $275 billion is
contained in the Second Liberty Bond Act, as amended, which
is the current authority of the Treasury to issue public
debt obligations. H.R. 9955 and H.R. 9956, now before the
Committee for its consideration, would provide a temporary
increase of $5 billion in this limit until June 30, 1959.
I want to make clear at the outset that the need for a
debt limit increase is based on:
1. The fact that cash balances have been running
distressingly low, as I will show in detail later.
2. There is need for more flexibility for more
efficient and economical management of the
debt.
3. Even with a balanced budget there will still be
large seasonal fluctuations in receipts which
make operations under the $275 billion limitation
most difficult.
This request, made within the framework of our 3959 budget
estimates for revenue and expenditures, emphasizes not only
much-needed flexibility as outlined above, but takes into
account contingencies which might develop in a world filled
with uncertainties.
After I assumed my responsibilities as Secretary of the
Treasury last summer, we reviewed the situation confronting
the Treasury and became concerned with the small margin,
then indicated, which would exist between the forecasts of
A-138

85
- 2 our financial requirements during this fiscal year and the
statutory debt limitation. We notified this Committee and
e
rthe_^nate_Jgi_nstnc Committeethat we would do all in our power
to o^e^a^e^onller" the $275~£lX_Toh limiTa/eTon^ At that time,
the budget for the fiscal year 1958 still projected a
surplus of more than $1-1/2 billion. Since then, as you
know, increased defense expenditures, coupled with a less
favorable outlook for revenues, have caused us to project
a budget deficit of $400 million, or a net decline of
approximately $2 billion from our position last summer.
We have been able to discharge our obligations within
the debt limit during the intervening period only by
maintaining cash balances which have been distressingly low
at times. We have had little or no margin for contingencies.
We believe that with some flexibility we would have been
better able to manage the public debt to a better advantage
for the public interest.
The combined cash inflow and outflow of the Treasury on
all accounts during fiscal year 1957 amounted to over
$400 billion. We disburse approximately $1.5 billion in an
average five-day week for budget expenditures. Our cash
balance has been approximately at that level on several
occasions. (See Chart 1, which compares average monthly
budget expenditures with Treasury cash balances.)
Under our Constitution, the Congress has the power to
borrow money on the credit of the United States and this
power has traditionally been delegated to the Secretary of
the Treasury. The Congress has adopted various means of
exercising control over the power which it delegates. The
power to borrow money cannot be exercised without regard to
the powers of Congress to lay and collect taxes and to
appropriate monies from the Treasury.
Prior to World War I the public debt amounted to about
$1-1/4 billion. Up to that time it was customary for the
Congress to enact specific laws each time the Treasury was
authorized to borrow money, which was at infrequent intervals.
This procedure became outmoded in meeting requirements for
borrowing due to heavy expenditures in World War I. In
1917 the Treasury had general authority to issue bonds
subject to a limitation based upon the total amounts of issues
without regard to interim retirements. We had another authority
to issue certificates of indebtedness based upon the amount
outstanding. During the period from 1918 to 1921 the
Treasury's borrowing authority was increased and extended to
include
authorityof
toindebtedness.
issue Treasury notes, as well as bonds
and
certificates

- 3In 1929 the authority was further extended to permit
the issuance of Treasury bills. In 1935, after further
increases in amounts of borrowing authority.in 1931 and
193^1 the limitation applicable to Treasury bonds was
changed from one based upon the amount of bonds issued to
one based upon the amount of bonds outstanding. In 1938,
the separate authorities applicable to different classes of
public debt obligations were consolidated under one
limitation applicable to all public debt obligations outstanding under the Second Liberty Bond Act, as amended. The
limitation established at that time was $45 billion, when our
public debt amounted to about $37 billion. This limit was
later raised to $49 billion.
Early in 1941, before this nation had become actively
involved in World War II, the debt limitation was increased
to $65 billion and the public debt was about $46 billion.
During the period from 1942 until 1945 the debt limitation
was increased each year by substantial amounts until it
reached $300 billion on April 3, 1945, when our public debt
amounted to about $234 billion.
After the close of World War II, the limitation was
reduced from $300 billion to $275 billion in June 1946. At
that time our total debt amounted to about $268 billion, and
the balance in the general fund of the Treasury amounted to
more than $14 billion.
Changes during these periods consistently provided larger
margins between the outstanding debt and the successive
limits than now exist or which would result from the temporary
Increase under consideration.
Primarily to take care of the uneven flow of corporate tax
collections, it was necessary to increase temporarily the
$275 billion debt limitation to $28l billion for the year
ending June 30, 1955. This limit was continued until June 30,
1956, when the temporary increase was reduced to $278 billion
for the year ending June 30, 1957. Since June 30, 1957, we
have been operating under a limitation again of $275 billion.
(See Table 1, which outlines these changes, and Chart 2,
which compares the debt outstanding in recent years with the
debt limit.)
Total cash balances in Federal Reserve Banks and
commercial banks (tax and loan accounts) were down to $1.6
billion in mid-January, and are estimated to be about
$1.5 billion in mid-February. Here I would like to explain
that in order to have cash in the Federal Reserve Banks with
which to pay what we anticipate in drawings against the

- 4-

Treasury, we are required to draw out of our accounts in the
commercial banks (known as tax and loan accounts) sufficient
amounts of money in advance to insure that there will be
adequate cash on hand to meet our expected obligations.
While the deposits carried in commercial banks are on demand,
there are approximately 11,000 banks involved, and the
physical problem of handling the transfer of deposits from
the commercial banking system to the Federal Reserve Banks
involves a lag of several days.
As an example of our tight position, during early
February our balances in commercial banks, less withdrawal
notices, may be as low as $250 million — or less than an
average day's disbursements.
It is too early to make precise day-to-day projections
of our cash balances through March, but at present it
appears it may be necessary to resort to substantial direct
borrowing from the Federal Reserve (if there is authority
under the debt limitation) in view of heavy payments,
including interest, and maturing securities due on March 15.
Proceeds from corporate tax collections do not become
available in large volume to meet expenditures until March 18
and thereafter.
One of the most serious difficulties encountered by the
Treasury in operating under the present limitation is the
problem of carrying out our financing in an orderly and
economical manner. A large portion of our public debt is
made up of securities with relatively short maturity. More
than $25 billion of Treasury bills come due within the next
90 days and more than $50 billion of Treasury certificates,
notes and bonds are coming due in the calendar year 1958.
(See attached Table 2 and Charts 3 and 4 on the volume of
Treasury financing.)
Some part of this short-term indebtedness Is coming due
each month, so that at all times the Treasury is faced with
substantial refunding problems. An objective of sound fiscal
policy is to extend the maturity of new issues whenever opportunities are available, so as to avoid concentrating too
large a portion of the public debt in the area of short
maturities.
In recent years, due to market conditions or the
restrictions of the debt limit, opportunities to accomplish
this objective have not been very frequent. We should be
able to take advantage of opportunities in the period ahead
of us. Under the present debt limit, we would not be able
to take full advantage of such opportunities. During the

- 5-

past several months, we have been able to issue only relatively
small amounts of longer maturities on two occasions. The
practice of the Government going frequently to the market
disturbs not only the market for Government securities but
also the market for corporate, State, and municipal
securities. We should be able to conduct our operations on
a scale commensurate with our needs and in accordance with
the conditions which prevail. We should as far as possible
leave the markets freer to absorb new financing by State and
local Governments and private businesses.
The circumstances which I have outlined, in our judgment,
require a prompt temporary increase in the present statutory
debt limitation. We will still experience in fiscal year
1959 a continuation of seasonal peaks in the collection of
corporate income taxes. These collections of corporate taxes
are gradually being leveled off, but there are still large
seasonal fluctuations. Under these circumstances, it is
necessary for the Treasury to borrow large sums in the
July-December period to meet expenditures, and to pay off
such borrowings in the January-June period, even in years
when we have balanced budgets. (Charts 5, 6 and 7 show the
semiannual distribution of budget expenditures, receipts,
and surplus or deficit for recent years, including estimates
for the fiscal year 1959.)
It is difficult to make precise month-to-month forecasts which reflect all operations of the Government, including
collection of a great many types of revenues, the rates of
expenditures under the programs of each agency, the issue
and retirement of our public debt obligations, and all of the
multitude of operations reflected in the total inflow and
outflow of the Treasury. We have, however, made estimates
of the public debt and cash balances which are based upon
our best judgment as of the moment, and I am submitting for
your information these figures in the attached Table 3.
These figures assume maintaining mid-month and end-of-month
cash balances of $3.5 billion and for an allowance of
$3.0 billion for flexibility in financing and for contingencies.
We want to re-emphasize that we are now at the period
of the year when the Treasury finds itself In a most
difficult position and at a time when we are facing major
financing operations. We respectfully urge, therefore, that
the Congress give prompt consideration to this matter.
We at the Treasury assure you that we will exert all our
oOo
abilities to achieve the utmost economy in governmental
operations
and to manage the public debt as best we can in the
national
interest.

TABLE 1

3TOT LIMITATION
.

m m

tnJDEE SEOT7.0N 21 03? THE SECOND LIBEBTY BOND ACT AS AMEN3TO
KXSTOHY OF I3SQI3LATX0N
APT 1917
Sept. 24, 1917t Soo. 1 (1*0 Staft.2SS) authorized bonds in the
amount; of ^..*....:
$7.53&,945,lJOO (a)
Sec. 5 (UO Stat.290) authorized certificates
of indebtedness out standing (revolving authority) k9 000,000,000 (b)

Apr. U, 191S, amending Sec. 1 (U0 Stat.502) increased bond
authority to
12,000,000,000 (a)
amending See. 5 (*40 Stat.[>04) increased authority for oertlfioatoa outstanding to ............. 8,000,000,000 (b)
July 9, 1913, amending Seo. 1 (UO Stat.844) inoreaaed bond
authority to

20,000,000,000 (a)

221a
Mar* 3, 1919, amending Seo. 5 (Urt Stat.1311) inoreaaed authority for certificatea outstanding to
10,000,000,000 (b)
Now Sootion 1# added (UO Stat.1309) authorised
notes in the amount of
7,000,000,000 (a)
1921
Nov. 23, 1921, amending Seo. IS (42 Stat.321) increased note
authority to outstanding (establishing revolving
authority)

7.500.000.000(b)

June 17, 1929, amending Seo. 5 (46 Stat.19) authorized Treasury
bills in lieu of certificates of indebtedness,
no change in limitation for the outstanding ..... 10,000,000,000 (b)

Qfl
y \y

- 2 -

1221
H-V . 3, 1931, "ending 3ec. 1 (46 Stat.1506) increased bond
aUth rlty t0

$28,000,000,000 (a)

3,9.34
^. 30, 1934, pending Sec. 18 (4£ Stat.343) increased authority for notes outstanding to

Feb. 4, 1935, amending Sec. 1 U9 Stat.20) limited bonds outstwiding (establishing revolving authority to ..
New section 21 added (49 Stat.21) consolidated
authority for certificates, and bills (sec.5)
and authority for notes {sec. 18). Same aggrogate mount outstanding
New section 22 added (49 3tat.2l) authorized
United States Savings Bonds vdthin authority
of Sec. 1.

10,000,000,000 (b)

25,000,000,000 (b)
K
'
'
'

20,000,000,000 (b)

im
May 26, 1938 amending Sections 1 and 21 (52 Stat.447) consolidated in section 21, authority for bonds,
certificates of indebtedness, Treasury bills
.and notes (outstanding bonds limited to
•830,000,000,000). Same aggregate total outstanding

45,000,000,000 (b)

12251
July 20,' 1939 amending Sec. 21 removed limitation on bonds
(53 Gta%X07l) without change total authorized outstanding
of bonds, certificates of indebtedness, Treasury bills and notes

45,000,000,000 (b)

1940
June 25, 1940, Sec. 302, Section 21 of the Second Liberty Bond
(5^ Stat»§26) Act,, as amended, is hereby further amended by
inserting "(a)" after "21." and by adding at the
end of such section a new paragraph a3 follovjs:
"(b)" In addition to the amount authorized
by the preceding paragraph of this section, any
obligations authorized by sections 5 and 10 of
this Act, as emended, not to exceed in the aggre-

- 3 -

wj.

Juno 25, 1940, gate 04,000,000,000 outstanding at any one tinio,
(cont'd)
less any retirements made from the special fund
made available under section 301 of' thu Revenue
Act of 1940, may be issued under said sections
to.provide the Treasury '.vith fund3 to meet any
expenditures made, after June 30, 1940, for the
national defense, or to reimburse tho general fund
of the Treasury therefor, any such obligations so
issued shall be designated 'National Defense
Series'."
$ 4,000,000,000 (c)

mi
Feb. 19, 1941, amending Sec. 21 to read "Provided that the face
(55 Stat«7) . amount of obligations issued under the authority
of this Act shall not exceed in the aggregate
#65,000,000,000 outstanding at any one time."
Eliminates separate authority for sP4,000,000,000
of National Defense Series obligations
65,000,000,000 (b)

Mar. 23,.1942, amending Section 21 increasing limitation to
.(56 Stat.lG$5) S125,000,000,000

125,000,000,000 (b)

194
Apr. 10, 1943, amending Section 21 increasing limitation
(57 stat.63)
to $210,000,000,000

210,000,000,000 (b)

1944
Juno 9 1944, amending Section 21 increasing limitation
% fltlt.272) to |26Q,O0O,O0O,OOO

260,000,000,000 (b)

mi
Apr. 3 1945, amending Section 21 to read: "The face amount of
(59 S t a L w
obligations issued under authority of this Act, and
J
the face amount of obligations guaranteed as to
principal and interest by the United States (except such guaranteed obligations as may bo held
by the Secretary of the Treasury), shall not exceed in the a ^ a t . feOO,000,000,000 ouUtanding at any ono time."

(b)

,?w/,wv,ws/,w

QO
y i—

- k19**6
June 26, 19^6, amending Section 21 decreasing limitation to
(60 Stat. 316)
$275,000,000,000 and adding, "the current redemption value of any obligation issued on a
discount basis which is redeemable prior to
maturity at the option of the holder thereof shall
be considered, for the purposes of this section,
to be the face amount of such obligation."
$275,000,000,000 (b)
19^
Aug. 28, I95U
(68 Stat. 895)

amending Section 21, effective August 28, 195^, and
ending June 30, 1955, temporarily increasing
limitation by $6 billion to
$281,000,000,000 (b)

1955
June 30, 1955
(69 Stat. 2*H)

amending Aug. 28, I95U Act, by extending until
June 30, 1956, increase in limitation to

$281,000,000,000 (b)

1956
July 9, 1956
(70 Stat. 519)

amending Act of Aug. 28, 195^, temporarily increasing limitation by $3 billion, for period beginning on
July 1, 1956, and ending on June 30, 1957, to .... $278,000,000,000 (b)

1957
Effective July 1, 1957, temporary increase
terminates and limitation reverts, under Act
of June 26, 19^6, to

(a) Limitation on issue.
(b) Limitation on outstanding.
(c) Limitation on issues less retirements.

$275,000,000,000 (b)

TABLE 2
QQ
y

MARKETABLE MATURITIES JANUARY 1958 THROUGH DECEMBER 1958

(In millions of dollars)

Maturity date
1958

Security
(issue date)

Total amount
outstanding
12/31/57

Feb. 11+

3-3/8$ Certificate (2/15/57)

$10,851

Mar. 15

2-1/2$ Bond (6/2/41)

1,449

Apr• 1 •••••

1-1/2$ Exchange Note (4/1/53)

383

Apr. 15

Special Bill (8/21/57)

1,751

Apr. 15

3-1/2$ Certificate (5/1/57)

2,351

June 15

2-7/8$ Note (12/1/55)

4,392

June 15

2-3/8$ Bond (7/1/52)

4,245

June 15

2-3/4$ Bond of 1958-63 (6/15/38) ^

919

Aug. 1

k^ Certificate (8/1/57)

11,519

Oct. 1 .....

1-1/2$ Exchange Note (IO/I/53) -

121

Dec. 1 .....

3-3/4$ Certificate (12/1/57)

9,830

Dec. 15

2-1/2$ Bond (2/15/53)

2,368
$50,179

1/ Partially tax exempt.

Callable June 15, 1958.

2/ Excludes $22.1 billion of regular veekly Treasury bills and
$3.0 billion Tax Anticipation bills due March 24, 1958.

TABLE 3

FORECAST OF CASH BALANCE AiND DEBT, FISCAL YEAR 1959

BASED ON CONSTANT OPERATING CASH BALANCE OF ^3»5 BILLION (excluding free gol
{in billions)
Operating Balance

Allowance to
provide flexiFederal Reserve Banks Public debt'bility in finane- Total public
and Depositaries
subject to
ing and for
debt limita(excluding free gold) limitation
contingencies
tion required
July 15, 1958
July 31

$3.5
3.5

$271.6
272.6

$3.0
3.0

$274.6
275-6

August 15
August 31

3.5
3.5

273.5
273.6

3.0
3.0

276.5
276.6

September 15
September 30

3.5
3.5

275.2
271.3

3.0
3.0

278.2
274.3

October 15
October 31

3.5
3.5

273.4
274.7

3.0
3.0

276.4
277-7

November 15 • • •
November 30

3.5
3.5

275.3
275.0

3.0
3.0

278.3
278.O

December 15 .........
December 31

3.5
3.5

277.1 275.3

3.0
3.0

280.1
273.3

January 15, 1959 »•••
January 31

3.5
3.5

276.9
276.1

3.0
3.0

279.9
279.1

February 15 »
February 28

3.5
3.5

27b. 8
275-4

3-0
3.0

279.8
278.4

March 15
March 31

3.5
3.5

276.6
271.3

3.0
3.0

279-6
274.3

April 15
April 30

3.5
3.5

272.8
273.I

3.0
3.0

275-8
276.I

May 15
May 31

3.5
3.5

273-4
273.1

3.0
3.0

276.4
276.I

June 15
June 30

3.5
3.5

274.9
269.3

3.0
3.0

277-9
272.3

NOTE:

When trie 15th of a month falls on Saturday or Sunday the figures relate to
the following business day.
January 13, 19S>

sf-

Chart I

.THE TREASURY CASH BALANCE PROBLEM.
$Bil.

Monthly Averages. Fiscal 1948-58

Operating
Cash Balance

JJISEI

Operating Cash Balance as % of
Budget Expenditures

iPP|

w*$

1L
Budget Expendit
1948

'52

'55

'58
Fiscal Years

Otfiie irf \)w Scire I at > uf (he Ireasuiy

'52

'58

Chart 2

PUBLIC DEBT OUTLOOK

Offct a* xrm Sacrv-ry a* Vt Vtasary

vj •y

Chart 3

1MARKETABLE MATURITIES >nINB
Excluding Regular and Tax Anticipatic

135ft
ills

11.5

$Bil.
10.9

9.8

^5-7 Federal
Reserve Banks*

A All Other
S Investors

4.4 4.2

—

1.8

1.4

Calla ble

2.4

f|j|

Gil

3 % % _!fe% l'/2% Sp. 3 k %
CI
Bd. E.Nt. Bill C.I.
Feb. 14 Mar. 15 Apr.l k -Aprl5- J

liijSj:

\*M.

i,
m

27/8% 2 3 / 8 % 23/4% 4 %
Nt. Bd. Bd. CI.
'
June 15
' Aug.1

* Including Government Investment Accounts.
Oftct of U . SKnury o< im ttuuy

2.4

!4;6;

.1
l'/2%

ENt.
Oct.l

"ill

:24:l

l\% 2'/2%
CI
Bd.
Dec.l Dec. 15

Chart 4

VOLUME OF TREASURY MARKET FINANCING
(Excluding Weekly Roll-Over of Bills)
$Bil.
60

65.5
EZZZ3I.3

5-10 Year Bonds -

—OtherNotes

Long-Term Bonds.

40
>• Certs.

and Short
Notes*

~~ Seasonal
'51

'53

- Calendar Years *Notes originally 20 months or less to maturity.
Office of the Stcrflar) of the Ireasury

Chart 5

BUDGET SURPLUS OR DEFICIT-SEMIANNUAL
Fiscal Years 1 9 5 5 - 5 9
$Bil.

Budget Surplus
•5

+9.5.
+7.3
JulyDec.

JulyDec.

Jan.June

JulyDec.

Jan.June

JanJune
-5.7

JanJune

Jan.June
-6.1

-6.8

-7.9:;

•6.6<

+6.4

- 5 - -9.3

Budget Deficit
•10

1955

Otfic of U » StcnUry of U . iiuuy

'56

'58

'59

Chart 6

BUDGET

EXPENDITURES-SEMIANNUAL
Fiscal Years !955-'59

$Bil.

33.4:

:36.9:

33.8:

:36.6:

33.1

36.2

33.0

:35.6

3I.6-:

JulyDec.

Jan.June

JulyDec.

Jan.June

JulyDee.

Jan.June

JulyDec.

Jan.June

JulyDec.

— 1955—'
Office of the Secnuvy of the toasury

—1956—'

*—1957—'

—1958—'

:37.0

Jan.June

—1959—'

Chart 7

, BUDGET RECEIPTS-SEMIANNUAL
Fiscal Years 1955-59
"$BiT

JulyDec.

Jan.Juneu

'—1955—
Office of the Secretary of the Treasury

JulyDec.

'56

Jon.June

JulyDec.

' '—-'57

Jan.June

JulyDec.

' '

'58

Jan.June

July- Jan.Dec. June

' '

'59

B-1326 -A

101

A-1*

IMMEDIATE RELEASE,
Friday, January 17, 1958.

The Treasury Department today announced the subscription and allotment figures with respect to the current cash offering ot 3-5/8 percent
Federal Rational Mortgage Association Notes of Series KL-1960-A. These
notes will be dated January 20, 1958, and will mature August 23, I960.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve Total Total
District

Subscriptions

Allotments

Boston % 73,85^,000 ^K'iMX
Sew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL

2,90)4,073,000
159,1*27,000
119,009,000
158,992,000
163,851,000
615,81*8,000
138,375,000
80,01*1,000
93,69i*,QOO
185,797,000
522,930,000
lMOO
15,215,905,000

W S ' S X
Jfc'&ffi
J?'#2'25
&ft!'2£
25,1*73,000
5'2&'S£
S'Ifi'25
}Hll>™
& P M
28,Ul8,000
W
'°?M£
lhyOOO
*797»3U*,O0O

TREASURY DEPARTMENT

lij2

WASHINGTON, D.C. N^V_;
IMMEDIATE RELEASE,
Friday, January 17, 1958.

A-139

The Treasury Department today announced the subscription and allotment figures with respect to the current cash offering of 3-5/8 percent
Federal National Mortgage Association Notes of Series ML-1960-A. These
notes will be dated January 20, 1958, and will mature August 23, I960.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve
District

Total
Subscriptions

Total
Allotments

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

73,85U,000
2,90l*,073,000
159,1*27,000
119,009,000
158,992,000
163,851,000
6l5,81i8,000
138,375,000
80,0la,000
93,69U,000
185,797,000
522,930,000
1U,000

$ 11,1*05,000
U*0,l*7l*,000
2U,1*29,000
18,693,000
2l*,5U2,000
25,1*73,000
95,071,000
21,771,000
13,289,000
ll*,738,000
28,1*18,000
79,02l*,000
ll*,000

TOTAL

$5,215,905,000

$797,3Ul*,0OO

f\~yo

103
RELEASE A. M. NEWSPAPERS,
Saturday, January 1?, 19>8.

(

The Treasury Department announced last evening that the tenders for $1,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated January 23 and to mature April 21*,
1958, which were offered on January ll*, were opened at the Federal Reserve Banks on
January 17.
The details of this issue are as followst
Total applied for - 12,750,212,000
Total accepted
1,700,823,000

{includes t355,69l*,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Ran^e of accepted competitive bids* (Excepting one tender of 1600,000)
High - 99.359 Equivalent rate of discount approx. 2.536$ per annum
Low
• 99.31*1* ' "
« «
«
«

2.595$

Average - 99.31*6 n * " w » 2.587$ " "
(31 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

TOTAL

/hi

1*5,378,000
1,998,1*1*5,000
1*1,399,000
70,1*19,000
18,726,000
1*1,11*7,000
21*6,378,000
3*4,028,000
17,06U,000
55,851*,000
36,158,000
11*5,216,000

12,750,212,000

3l*,378,000
1,100,01*5,000
21,019,000
60,1419,000
18,726,000
1*0,61*7,000
177,61*8,000
3l*,028,000
l6,lll*,000
51,350,000
35,658,000
110,791.000

$1,700,823,000

•i 0 4 .
oi. 'y -

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Saturday, January 18, 1958.

A-140

The Treasury Department announced last evening that the tenders for $1,700,000,000

or thereabouts, of 91-day Treasury bills to be dated January 23 and to mature Apri
1958, which were offered on January 1I4, were opened at the Federal Reserve Banks
January 17.
The details of this issue are as follows:
Total applied for - $2,750,212,000
Total accepted
1,700,823,000

(includes $355,69*4,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids: (Excepting one tender of $600,000)
High
Low

- 99.359 Equivalent rate of discount approx. 2.536$ per annum
- 99.31*1*
"
«
ft
»
2.595$ »
»
N

Average

- 99.31,6

„

2.587$

(31 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
$ 1*5,378,000
1,998,1*145,000
1*1,399,000
70,1*19,000
18,726,000
1*1,11*7,000
21*6,378,000
3l*,028,000
17,06*4,000

55,85i*,ooo
36,158,000
11*5,216,000
TOTAL $2,750,212,000

Total
Accepted
$

314,378,000
1,100,0*45,000
21,019,000
60,1419,000
18,726,000
1*0,61*7,000
177,6*48,000
314,028,000
16,11*4,000
51,350,000
35,658,000
110,791,000

$1,700,823,000

- 2-

Commodity

Period and Quantity

•

_L U y

Unit
•
of
: Imports as of
Quantity : December 31, 1957

Absolute Quotas:
Tung oil

Nov. 1 -30, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

764,771
Quota Filled
Quota Filled

Dec. 1 - 31, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

767,978
Quota Filled
Quota Filled

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Tuesday. January 21, 1958.

1_Q

A-141

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, 1957, inclusive, as follows:.

Commodity

Period and Quantity

Unit :
of
t Imports as of
Quantity; Dec. 31. 1957

Tariff-Rate Quotas:
Cream, fresh or sour.. ,

Calendar Year

1,500,000

Gallon

469

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

3,000,000

Gallon

843

Cattle, less than 200 lbs. each12 mos. from
April 1, 1957

200,000

Head

Cattle, 700 lbs. or more each
(other than dairy cows)

120,000

Head

Quota Filled

Pound

Quota Filled

Tuna fish Calendar Year 44,528,533

Pound

42,513,788

White or Irish potatoes:
Certified seed
Other

Pound
Pound

72,553,417*
34,161,697*

Walnuts Calendar Tear 5,000,000

Pound

2,388,535

Almonds, shelled, blanched, Oct. 23, 1957 - 5,000,000
roasted, or otherwise prepared Sept. 30, 1958
or preserved...•••

Pound

2,365,348*

Alsike clover seed 12 mos. from 3,000,000
July 1, 1957

Pound

129,783

Peanut oil.. 12 mos. from 80,000,000
July 1, 1957

Pound

Woolen fabrics Calendar Year 14,000,000

Pound

Quota Filled

Pound

Quota Filled

Pound
Pound

Quota Filled

Pound

Quota Filled^
(Continued}

Oct. 1, 1957 - «
Dec. 31, 1957

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

37,375,636

12 mos. from
114,000,000
Sept. 15, 1957 36,000,000

16,023*

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted peanuts, but not peanut butter)

12 mos. from
Aug. 1, 1957

1,709,000

Rye, rye flour, and rye meal.... 12 mos. from
July 1, 1957
Canada
182,280,000
Other Countries 3,720,000
Butter substitutes, including
butter oil, containing 45$
Calendar Year
1,800^000
or more butterfat
* Imports as of January 4, IV58

TREASURY DEPARTMENT
Washington

IMEDIATE RELEASE,
iesda_L~__January 21. 1958.

A-141

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, 1957, inclusive, as follows:

Commodity
^ J _____________.__________________________^

Period and Quantity

-•_—_•!•*•

Unit :
of
: Imports as of
Quantity: Dec.. 31, 1957

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

Gallon

469

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

Gallon

843

Cattle, less than 200 lbs. each 12 mos. from 200,000
April 1, 1957

Head

Cattle, 700 lbs. or more each Oct. 1, 1957 - 120,000
(other than dairy cows)
Dec. 31, 1957

Head

Quota Filled

Pound

Quota Filled

Tuna fish Calendar Year 44,528,533

Pound

Z£,513,788

White or Irish potatoes:
Certified seed
Other

Pound
Pound

72,553,417*
34,161,697*

Walnuts. Calendar Year 5,000,000

Pound

2,388,535

Almonds, shelled, blanched, Oct. 23, 1957 - 5,000,000
roasted, or otherwise prepared Sept. 30, 1958
or preserved.••

Pound

2,365,348*

Alsike clover seed 12 mos. from 3,000,000
July 1, 1957

Pound

119,783

Peanut oil 12 mos. from 80,000,000
July 1, 1957

Pound

Woolen fabrics Calendar Year 14,000,000

Pound

Quota Filled

Pound

Quota Filled

Pound
Pound

Quota Filled

Pound

Quota Filled
(Continued)

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

37,375,636

12 mos. from
114,000,000
Sept. 15, 1957 36,000,000

16,023*

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts, but not peanut butter)
Aug. 1, 1957

1,709,000

Rye, rye flour, and rye meal.... 12 mos. from
July 1, 1957
Canada
182,280,000
Other Countries 3,720,000
Butter substitutes, including
butter oil, containing 45$
Calendar Year
1,800,000
or more butt erf at
* Imports as of January 4, iVi>«

- 2 -

Unit
of
Quantity

Commodity

Imports as of
December 31. 1957

Absolute Quotas:
Tung oil

Nov. 1 -30, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

764,771
Quota Filled
Quota Filled

Dec. 1 - 31, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

767,978
Quota Filled
Quota Filled

TREASURY DEPARTMENT
Washington

10 Q
JL

y ^

IMMEDIATE RELEASE, A-142
Tuesday, January 21. 195o«
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1958, to
January 4, 1958, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act
of 1955:
. : Unit : ~"
CQ-oaodity

:Established Annual :
of
: Imports as of
: Quota Quantity
: Quantity : Jan. 4, 1958

Buttons

807,500

Gross

16,887

Cigars 190,000,000 Number 187,085
Coconut oil 425,600,000 Pound 2,935,054
Cordage 6,000,000 Pound 174,875
(Refined
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 50,706

Pound
6,720,000

TREASURY DEPARTMENT
Washington

1US

TJMMEDIATE RELEASE, A-142
Tuesday, January 21. lgffQy
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1958, to
January 4, 1958, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act
of 1955:
. \ Unit :
Commodity

•Established Annual :
of
: Imports as of
: Quota Quantity
: Quantity : Jan. 4, 1958

Buttons

807,500

Gross

16,887

Cigars 190,000,000 Number 187,085
Coconut oil 425,600,000 Pound 2,935,054
Cordage 6,000,000 Pound 174,875
(Refined
Sugars
(Unrefined

1,904,000,000

Tobacco 6,175,000 Pound 50,706

Pound
6,720,000

v_J

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Tuesday, January 21, 1958*

A-143

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1957, to
December 31, 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

Unit
:
of
: Imports as of
Quantity : Dec. 31, 1957
Gross

806,698

Cigars 190,000,000

Number

Coconut oil 1*25,600,000

Pound

190,889,277

Cordage 6,000,000

Pound

5,151,978

(Refined
Sugars
(Unrefined...
Tobacco 6,175,000

4,489,627

44,650,386
1,904,000,000

Pound

1,711,663,875
Pound

5,964,908

TREASURY DEPARTMENT
Washington

1 1 t
mim mL U.

IMMEDIATE RELEASE,
Tuesday, January 21, 1958.

A-143

Commodity

:Established Annual
: Quota Quantity

Unit
:
of
: Imports as of
Quantity : Dec. 3l> 1957

806,698

Buttons 807,500

Gross

Cigars 190,000,000

Number

Coconut oil 425,600,000

Pound

190,889,277

Cordage 6,000,000

Pound

5,151,978

(Refined
Sugars
(Unrefined...

Pound

Tobacco 6,175,000

4,489,627

44,650,386
1,904,000,000

1,711,663,875
Pound

5,964,908

"^%S»^*

COTTON WASTES
j[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 Italyg

Country of Origin

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

Established
TOTAL QUOTA

Total Imports
s Sept. 20, 1957, to
t Jan. 16. 1958

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

552,973
239,690

1,441,152

5,482,509
if Included in total imports, column 2.
Prepared in the Bureau of Customs •

Established
33-1/3$ of
Total Quota

Imports
Sept. 20, 1957
to Jan. 16. 1958
552,973

—

75,807

6,996

—
-

22,747
14,796
-2,853

0,915

25,443
7,088

6,915

806,574

1,599,886

5599BBQ

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Tuesday, January 2 1 . 1958.

y
A-144

Preliminary data on imports for consumption ofcotton and cotton waste chargeable to the quotas
established by the President'^ Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1957. to Jnmm^r 1A, 10**
Country of Origin
Established Quota
Imports
Country of Origin
s

Egypt and the AngloEgyptian Sudan . . .
*eru « • » » . . . . .
British India . . . . .
China . . . . . . . . .
Mexico .
Brazil . . . •, . , . ,
Union of Soviet
Socialist Republics •
Argentina
naiul

. . . . . . . . .

Ecuador

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

7,296

Honduras ...... .
Paraguay . . . . . . .
Colombia . . . . . . «,
XAaq

8,8$3,259
600,000

. . . . . a . ,

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

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago<
2/ Other than Gold Coast and Nigeria.
__/ Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of less than 3/4"
Imports Sept. 20. 19 57f to Jan. 4 f IQSft

Cotton 1-1/8" or more
Imp^j^s^ugujt.1, 19S7 to n w r > 3 1 ,

Established Quota (Global)

Established Quota (Global) Imports

70,000,000

Imports
1,246,024

45,656,420

ilMt1«.

45,656,420

Imports

IMMEDIATE RELEASE,
Tuesday, January 21, 1958.

TREASURY DEPARTMENT
Washington

11 A
A-144

Preliminaryjlata on imports for AconsumpUon of cotton and cotton waste chargeable to the quotas
established by.the President'*.Proclamation of September 5, 1939, fs amended
*
P «. '.. C?™N (°ther ^an linters) (in pounds)
Imports sepx;. zu, IQ^7I t,0 tTRmmrv lA> -^ VICountry of Origin
Established Quota
^Ports
Country of Origin
Established Quota
Egypt and the AngloHonduras ..... .
752
Egyptian Sudan • .
783,816
7,296
Paraguay
871
Peru
247,952
Colombia
•
•
.
.
.
.
.
124
2,003,483
British India . . . .
Iraq .
195
1,370,791
China
British
East
Africa
.
.
2,240
8,883,259
Mexico
71,388
8,883,259
Netherlands E. Indies.
618,723
Brazil . . . - . . . . ,
600,000
Barbados
21,321
475,124
Union of Soviet
1/Other
British
W.
Indies
5,377
5,203
Socialist Republics
16,004
Nigeria
237
Argentina
689
2/0ther British W. Africa
9,333
Haiti
.2/Other French Africa . .
Ecuador
Hi
llhtl ^ ° n ^ n 0 3 ' B e r m u d a > Jamaica, Trinidad, and Tobago. Algeria and Tunisia .
|/ Other than Gold Coast and Nigeria,
^
y Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rongh. of less than ^An
.Cotton 1-1/8" or more
Imports Sept. 20. 1 9 V r ^ lTnn,
^
^
Imports A u j g ^ L 7 I 9 ^ t o ^
.i^c^^j^.
Established Quota (Global) Imports
Established Quota (Global) imports
70,000,000 1,246,024

45,656,420 45,656,420

—2COTTON WASTES
(In pounds}
COTTON CARD STRIPS made from cotton having-a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING 7/ASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE2 Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple- length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy.
iEstablished
Country of Origin
2 TOTAL QUOTA
- " - : •"

: T o t a l Imports
s Established s
Imports
Tf
; Sept. 20, 1957, to s 33-l/3# of s Sept. 20, 1957
: Jan. 16. 1958
; Total Quota ; to Jan. 16. 1958

United Kingdom 4,323,457 552,973 1,441,152 552,973
Canada
.
239,690
239,690
France . . . . . . . . . .
227,420
_
British India
69,627
6,996
Netherlands . . . . . . .
68,240
Switzerland . . . . . . .
44,388
Belgium
38,559
Japan . . . . . . . . . .
341,535
China . . .
17,322
Egypt
.
8,135
Cuba
6,544
Germany
76,329
Ital
y
- •
21.263
6P915
5,482,509
if Included in total imports, column 2.
Prepared in the Bureau of Customs.

806,574

75,807
22,747
14,796
12,853
25,443
7,088
1,599,886

6 915
5599BBS

^f'~C

- 2 -

Commodity

Period and Quantity

:
Unit
•
:
of
: Imports as of
: Quantity : January 4. 1958

Absolute Quotas:
.

Dec. 1 -31, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

767,978
Quota Filled
Quota Filled

Jan. 1 - 31, 1958
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

440,924*
Quota Filled
Quota Filled

^Imports as of January 16.

IMMEDIATE RELEASE,
Tueadav. January Pfr 1Q58.

TREASURY DEPARTMENT
Washington

1 1E
mm. mm. W *

A-145

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 January 4, 1958, inclusive, as follows:

Commodity

Period and Quantity

: Unit :
:
of
: Imports as of
:Quantity: Jan. k. low

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

Gallon

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

Gallon 2

Cattle, less than 200 lbs. each 12 mos. from 200,000
April 1, 1957

Head 16,023

Cattle, 700 lbs. or more each Jan. 1, 1958 - 120,000
(other than dairy cows)
Mar. 30, 1958

Head

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

3,760

Pound

5,298,958

Pound

130,358

Pound
Pound

72,553,4-7
34,161,697

Walnuts Calendar Year 5,000,000

Pound

3,030

Almonds, shelled, blanched, Oct. 23, 1957 - 5,000,000
roasted, or otherwise prepared Sept. 30, 1958
or preserved.

Pound

2,365,348

Alsike clover seed 12 mos. from 3,000,000
July 1, 1957

Pound

119,783

Peanut oil 12

Pound

Tu^

fisn

Calendar Year To be announced

White or Irish potatoes:
Certified seed
other

mos.

12 mos. from
114,000,000
Sept. 15, 1957 36,000,000

from 80,000,000
July 1, 1957

Woolen fabrics Calendar Year To be announced

Pound

1,354,269

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter).... Aug. 1, 1957

1 709 000

Bye, rye flour, and rye meal.... 12 mos. from
July 1, 1957
Canada
182,280,000
Other Countries 3,720,000
Butter substitutes, including
butter oil, containing U5%
or more butterfat
...,
Calendar Year 1,200,000

Pound

Quota Fillid

Pound
Pound

Quota Filled

Pound

1,199,952
(Cunliimed)

IMMEDIATE RELEASE,
TREASURY DEPARTMENT
Washington

THftflflavt January 23,. 1958*

A-145

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 January 4, 1958, inclusive, as follows:

Commodity

Period and Quantity

: Unit :
:
of
: Imports as of
:Quantity: Jan. 4. 1958

Tariff-Rate Quotas:
Calendar Year

1,500,000

Gallon

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

3,000,000

Gallon

12 mos. from
Cattle, less than 200 lbs. each
April 1, 1957

200,000

Head

16,023

Cattle, 700 lbs. or more each
(other than dairy cows)

120,000

Head

3,760

Cream, fresh or sour • •«

Jan. 1, 1958 Mar. 30, 1958

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

5,298,958

Tuna fish • •••••• Calendar Year To be announced

Pound

130,358

White or Irish potatoes:
Certified seed
Other

Pound
Pound

72,553,417
34,161,697

Walnuts.. Calendar Year 5,000,000

Pound

3,030

Almonds, shelled, blanched, Oct. 23, 1957 - 5,000,000
roasted, or otherwise prepared Sept. 30, 1958
or preserved.....

Pound

2,365,348

Alsike clover seed......... 12 mos. from 3,000,000
July 1, 1957

Pound

119,783

Peanut oil 12 mos. from 80,000,000
July 1, 1957

Pound

Woolen fabrics Calendar Year To be announced

Pound

12 mos. from
114,000,000
.. Sept. 15, 1957 36,000,000

1,354,269

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter).... Aug. 1, 1957

1,709,000

Pound

Quota Fillid

Pound
Pound

Quota Filled

Pound

1,199,952
(Cuulinued)

- 2 -

Unit
of
Quantity

Commodity

Imports as of
January 4, 1958

Absolute Quotas:
Tung oil

Dec. 1 -31, 1957
Argentina
Paraguay
Other Countries

980,900
131,556
41,544

Pound
Pound
Pound

767,978
Quota Filled
Quota Filled

Jan. 1 - 31, 1958
Argentina
980,900
Paraguay
131,556
Other Countries
41,544

Pound
Pound
Pound

440,924*
Quota Filled
Quota Filled

^Imports as of January 16.

- 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 \i$\\ (b) and 1221 ($) of the Internal Revenue Code of
195U the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. Itl8, 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 X&KKKA .. - ''

Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be

final. Subject to these reservations, noncompetitive tenders for $200,000 or les

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

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 50, 1958 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 50, 1958 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 princ

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

TREASURY DEPARTMENT
Washington

/ ( - /

A. M.
Mm RELEASE/ MSRMNS NEWSPAPERS,
Thursday, January 25, 1958
.
-__-

#1,699,189,000 , to be issued on a discount basis under competitive and non-

—i_r—
competitive bidding as hereinafter provided. The bills of this series will be
dated January 50, 1958 . and will mature. May 1, 1958 , when the face

5S5E

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of #1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/tax o*clock p.m., Eastern Standard time,Monday, January 27, 1958
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders

the price offered must be expressed on the basis of 100, with not more than thr
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from

incorporated banks and trust companies and from responsible and recognized dea

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

RELEASE A.M. NEWSPAPERS,
Thursday, January 23, 1958.
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 30, 1958,
in the amount of $1,699,189,000, 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 30, 1958,
and will mature May 1, 1958,
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 27, 1958.
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 bill* s applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on January 30, 1958, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing January 30, 1958,
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his Income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

oOo

Recipient (1953) National Industrial Man Award, National Council Industrial
Management Clubs.
Member, Navy League, U« S,
Elected Msthodist Hall of Fame, 1956, Department of Philanthropy
Member, Safety Commission of Lake County
Recipient, Eisenhower Prayer Award - U.S0 Treasury Department

Served in Illinois Reserve Militia During First World War (Chicago Race Riots)
and retired a s Top Sergeant at time it was disbanded. First Lieutenant in
Medical Department of U. S. Army (Reserve).
Sanitary Corps until k$ years of age - served about ten years.
Director, Vice-President and Treasurer of our Canadian Corporation.
Also member of Committee who established the use of Mercury Drops in eyes
of children - 1910 - 1912.
Formerly active member Illinois Emergency Relief Commission (Lake County)
prior to W.P.A.
Msmber - Advisory Council - Chemical Warfare Service.
Superintendent of Sunday School for eighteen years.
Teacher of adult Bible Class for twenty-*two years.
Veteran member and Past Governor of Khollwood Country Club
Past Master of Wayfarers Lodge
Past President, Worth Chicago Club, and Member Rotary International.
Past President and Director of Illinois State Chamber of Commerce.
Member - Chemical Warfare Advisory Service - Edgewood Arsenal.
Has served on numerous Committees appointed in connection with Federal and
State Laws and has personally testified before Committees in Senate, Finance
Committees, Ways and Means, Committee in House, various Commissions in the
Department of Labor and helped write regulations in such organizations as
O.PoA., etc. Also Federal Tax Laws and Regulations.

12?

January 8, 1958

BIOGRAPHY OF MR. JAMES F. STILES,JR.
Vice-President and Director of Abbott Laboratories in 1950.
Made Chairman of the Board in 1952 and carried the title of "Chairman of
the Board and Treasurer" until April, 195>7«

Will be Chairman of the Board until retirement. Also is Chairman of the Finance
Committee and Pension and Retirement Program.
Formerly - General Chairman of Lake County War Finance Committee.
Director - Chicago Regional Planning Commission.
Member of Industrial Panel - War-Labor Board.
Administrator, Lake County, Illinois Emergency Relief Commission.

Past President, Chicago Chapter National Association of Cost Accountants, 1925.
President, Illinois State Chamber of Commerce, 19U5-19U7.
TRUSTEESHIPS
Grace Methodist Church
Chicago Vfesley Memorial Hospital - also President
Northwestern University
Lake County T.B. Sanatarium - also Secretary
Lake County Water District
Damar Foundation
Illinois State Pension Laws Commission
Labor Management Committee - Department of Labor
Victory Memorial Hospital
Boy Scouts - Oak Plain Council - Trustee
Abbott Fund - Trustee
Abbott Foundation - also Treasurer
Illinois State Chamber of Commerce Employees Pension Fund.

8, 1958
- 2 -

124
Served as trustee of Northwestern University*, Chicago
4
Wesley Itaorial Hospital, Lake County water District, Zmtfa&w^^***^
Illinois State Pension Laj© Commission, Abbott Fund,
Abbott Foundation.
Served In Illinois Reserve MILlItia during

tee.

world War I, retiring as first sergeant. Later became
first lieutenant, Army Medical Corps R^s^rve,
national Director, U.S. Savings Bonds Division of
Treasury Department, Jan. 22, 1958.

JAMES F. STCLES, JR.

125

National Director, Savings Bonds Division, Treasury Department

Born June 27, 1892, 1** Chicago.
Parent**: James F. Stiles Sr. and Isabella Dillon Stiles,
previously of Mamaroneck, lt.1.
Schooling:

Austin grade echool, Chicago, and night

•U.... at t a ^ ^ ^ t i f c £ ^ %^,2J,lift.
Harried
With Sears Roebuck k Co., Chicago, 1912-13.
Associated with Abbott Laboratories, Chicago, ^nufacturers
of pharmaceuticals, 1913-5^

Advanced from order picker in

shipping room to director- XX** president and treasurer,
chairman of beard.
President of Illinois State Chamber of Commerce, 1945.47.
General Chairman, Lake County (Illinois) mw Finance
Committee, for 12 years.
Served as Director of Chicago Regional Planning Commission*
Recipient of national Industrial Man rtward of national
Council of Industrial Management Clubs, 1953.
Hember of Industrial Vmtttl, War Labor Board 1 V.B. Havy
league, Advisory Council, Cfcemioal Warfare Service; Safety
Commission of Lake County*
fast President, Chicago Chapter of National Association
of Cost Accountants.

-l_ £. y

Because of the importance of the Savings Bonds program and the coming in
of Mr. Stiles to MM lead it, I want to read a brief statement.
\ Y/hile sales of Series E and H bonds declined somev/hat in calendar 1957,
and redemptions increased somewhat, there are encouraging developments
to report.
x

At the end of December 1957 the cash value of Series E and H bonds

outstanding reached -yip., 57 8 million — a new all-time record. This
amount is approximately 1$ percent of the total public debt.
' In the last three months of calendar 1957 redemptions decreased
substantially, and there were sales gains in September and December over the
corresponding months of 1956.
Throughout the year 1957, sales of smaller denomination E bonds —
up to $200 — held their own. Total sales of Series E and H bonds for the
year topped M*$ billion.

'^«ftg^ Bmi«^ program
rsjum****^'

encourgiKini

*™>*^ in fiMi-^ii-.i i mm M i'iM^rr ' ih \i\\\\\iu\ >fi • nil mm
x

The outlook for 195& 1» bright.

As a 1958 sales goal, the Savings Bonds Division of the

Treasury and its volunteer advisory chairmen In the various
States have set a mark of $4*7 billion.
>N

I want to announce here today that very vigorous payroll

savings and "Share in America" sales campaigns will be conducted
within the next few months in *ymmmmj*\\\m\ metropolitan em*e*«and asase 200 w^a«e^wi#efei-4-»tH

We will have more details on

A
this In the near future.
A
We are gratified that we have National Mrector James F.
Stiles, Jr. to take general charge of this stepped~up program.
We know he will provide inspiring leadership.
^ W*

Stiles has a very challenging job. The Savings

Bonds program is an activity of top importance not only to
sound Qovernment financing and a healthy debt structure, but

128
** 2 *
also to the health of our free economy.

And It is peculiarly

important at this moment in world affairs.
\N In these days of swift-moving Mspace-age" developments,
every Savings Bonds purchase helps provide our country with
the strengthened resources on which so much depends# not
only for us but for future generations of Americans.

We must never forget that real capital cannot be created
by any form of monetary magic —

it must be saved!

Individual

savings therefore are one of the major responsibilities of
citizenship under present world conditions. Every American
who buys a Savings Bond can truly says

rl am helping to

provide for my own future, and I am adding to the strength of
my country, both military and economic.

I am putting real

meaning into the slogan, ''Share in America. +* •
v The Treasury is depending on this year's stepped-up campaigns
for payroll savings, and the "Share in America" bond campaigns,
to produce telling results*

All of us are confident that the

bond program is a whole will make fine progress under the

direction of Mr. Stiles as the P H W S « * » new National Director. "

t- y

plans of the Savings Bonds staff and volunteer organization for vigorous
payroll savings and "share in America" sales campaigns WLLJ J^f'liife in
33 metropolitan centers and 200 other cities.

I«_l-MM$i officials0mm

and personal friends of Mr. Stiles attended
r

the swearing-in ceremony at the treasury.

Responding to the Secretary's remarks, Mr. Stiles said: "I am entering
into this responsibility with all m# strength and vigor because I believe it

one of the most important assignments of my career. I'recognize J**mmtim--WK*
it as a challenge to help carry on one of the most
" V •'-«'*» jKJB-ea" •-

vital forces in the economic life of our cor^try."
The text of Secretary Anderson's remarls follows:

«L y w

Ilr* Stiles, who has had an outstanding

rsiriess career, retired as

chairman of the Abbott Laboratories of Chicago to accept the Savings .Bonds

leadership. He takes over his new post fronf John v.. Buckley, who resigne

A
devoting alr.ost two years to Savings Bonds affairs*

To the^^ationLasjiaeBS^?^"structure

Uni

James F. Stiles, Jr., new National Director of the United States
Savings Bonds program, is taking over the direction of stepped-up Savings
Bonds activities which are of vital importance to the Nation•fcpemBet^-^
"in these days of swift-moving 'space-age' developments," Treasury Secretary
Anderson said today as he administered the oath of office to Mr. Stiles.

He called individual savings "one of the major responsibilities of
citizenship under present world conditions", and said every American who
buys a Savings Bond can truly say: "I am helping to provide for my own
future, and I am adding to the strength of my country, both military and
economic."

The Jecretary told

Mr. °tiles that he "has a very challenging job

and expressed confidence the new lationajt Director will provide the bond prog ram
jjiih "inspiring leadership." /tfc C*M£^L. ^t^^-^%%, fa

' J ^^^^**^m^

f^u^tt

TREASURY DEPARTMENT

WASHINGTON, D.C.
FOR USE AT 3:30 P.M. E.S.T.,
Wednesday, January 22* 1958.

A-147

James P. Stiles, Jr., new National Director of the United
States Savings Bonds program, is taking over the direction of
stepped-up Savings Bonds activities which are of vital importance
to the Nation "in these days of swift-moving 'space-age*
developments," Treasury Secretary Anderson said today as he
administered the oath of office to Mr* Stiles*
He called individual savings "one of the major responsibilities
of citizenship under present world conditions", and said every
American who buys a Savings Bond can truly say: "I am helping
to provide for my own future, and I am adding to the strength of
my country, both military and economic."
Mr. Stiles, who has had an outstanding business career,
retired as chairman of the Abbott Laboratories of Chicago to
accept the Savings Bonds leadership. He takes over his new post
from John R. Buckley, magazine publishing executive who resigned
after devoting almost two years to Savings Bonds affairs.
The Secretary told Mr. Stiles that he "has a very challenging
job", and expressed confidence the new National Director will
provide the bond program with "inspiring leadership." He called
attention to encouraging sales and redemptions developments
toward the end of 1957, and to plans of the Savings Bonds staff
and volunteer organization for vigorous payroll savings and
"share in America" sales campaigns In 1958 in 33 metropolitan
centers and 200 other cities.
Department officials and personal friends of Mr. Stiles
attended the swearing-in ceremony at the Treasury.
Responding to the Secretary's remarks, Mr. Stiles said:
"I am entering into this responsibility with all my strength
and vigor because I believe it one of the most important assignments of my career. I recognize it as a challenge to help carry
on one of the most vital forces in the economic life of our
country."
The text of Secretary Anderson's remarks follows:
"Because of the importance of the Savings Bonds program and
the coming in of Mr. Stiles to lead it, I want to read a brief
statement•
"While sales of Series E and H bonds declined somewhat in
Calendar 1957, and redemptions increased somewhat, there are
encouraging developments to report.

- 2 -

-; Qo
mm. y

"At the end of December 1957 the cash value of Series E
and H bonds outstanding reached $41,578 million — a new all-time
record. This amount Is approximately 15 percent of the total
public debt.
"In the last three months of calendar 1957 redemptions
decreased substantially, and there were sales gains In
September and December over the corresponding months of 1956,
"Throughout the year 1957, sales of smaller denomination
E bonds — up to $200 — held their own. Total sales of
Series E and H bonds for the year topped $4.5 billion*
"The outlook for 1958 is bright.
"As a 1958 sales goal, the Savings Bonds Division of the
Treasury and its volunteer advisory chairmen in the various
States have set a mark of $4.7 billion.
"I want to announce here today that very vigorous payroll
savings and 'Share in America1 sales campaigns will be conducted
within the next few months in 33 metropolitan centers and 200
other cities. We will have more details on this in the near
future.
"We are gratified that we have National Director James P.
Stiles, Jr. to take general charge of this stepped-up program,
We know he will provide inspiring leadership.
"Mr* Stiles has a very challenging job. The Savings
Bonds program is an activity of top imports nee not only to sound
Government financing and a healthy debt structure, but also to
the health of our free economy* And it is peculiarly important
at this moment in world affairs,
"In these days of swift-moving 'space-age' developments,
every Savings Bonds purchase helps provide our country with
the strengthened resources on which so much depends, not
only for us but for future generations of Americans.
"We must never forget that real capital cannot be created by
any form of monetary magic — it must be saved I Individual
savings therefore are one of the major responsibilities of
citizenship under present world conditions. Every American who
buys a Savings Bond can truly say: 'I am helping provide for
my own future, and I am adding to the strength of my country,
both military and economic. I am putting real meaning into the
slogan, "Share in America."•
"The Treasury is depending on this year's stepped-up campaigns
for payroll savings, and the 'Share in America' bond campaigns,
to produce telling results. All of us are confident that the bond
program as a whole will make fine progress under the direction of
Mr. Stiles as the new National Director."
0O0

134

Xm total 159 casaaoditT nmabai* are included cm tba final list is
full aad ty> eaeaedlty aaebere save scam bet net all ltees Included on
tba final U s t .
The eetlaated fiaeal left dollar vales mt la^ertstlsBS of all itaas
included on the final list aaounts to approximately $ 1*311,000,000 (cellar
value mt items not imported is fieeal year IfA i* included as tba daUar
subsequent
raise tmr the/fiaeal yaar closest to fiaeal ymmr X9fk tor which there were
i«y«rtaUoaa)*

H d s constitutes 16.6$ ef tha total fiaeal 1 9 ^ dollar

•ol-me of importations dutiable en tbm baaia of vmlno aad approximately
2.3% ot the total dollar volume ef all fiaeal Ifft importations*

J. \J \m*

Custom* froa its valuation experts is all cases whose it was felt that
additional Information was needed to adequately evaluate the presentations made*

-any of the presentations cohered items net Imported la

fiscal year ~#ft and consequently not covered in the study upon which
the preliadnary H a t was based*

In each cases, studies comparable to

those made la the preparation of the preliminary list were made for such
commodities for later years.
la the preparation of the preliminary and final lists the greatest
care was exercised in applying the statute to the many varied factual
situations existing. Particular attention was given, whereever possible,
to describing various articles eeaprislng a single eemw&slty classification in such exact terms that specific articles which weald incur an
average valuation decrease of $% or sore under the new procedures would he
placed m the list and articles included la the classification incurring
no such average decrease would not be placed on the H a t ,

As a result of investigations of presentations made following the
publication of the preliminary list, | eonraoditgr numbers act included on
the preliminary list are covered on the final list in fall sad 6 commodity
numbers not on the preliminary list have at least seas but not all items
covered by the commodity number Included on the final list. Also,
the final list includes additional items not on the preliminary list for
22 ccfflBodity numbers *hieh were covered la part on the preliminary Ust*

1 OQ

-3of chwagm* in definition which will eetwdt as expert value
to be determined more readily are alee contained la section 2.

Following the approval ef the Simplification Act ef Iff* ea August 2,
L956, with Its p r o v i d e tmr m excepted X$m% the tieasury Desartaent sad
its Bureau of Castosa instituted a thorou^going study ef imported commodities as to which the duty la fiseal year If ft was dependent m value*
this study eabFseed some ?,586 different sea*od*%y nmbmrm or classification* covering s»*ebaadiee subject to mtt valorem and compound rates ef
duty* The starting point for this stmdy was an original survey prepared
tmr Congress in 1*5$ aad left eeveriag import* of such merehandise in fiscal
year 19ft. The orlglaal 20,000 samples contained la the survey prepared
far deagrese wars supplanted by 0,500^ additional samples la prej&sretion
of the ptelimtaary sad final lists i« eases where it was felt that more information was needed*
In the preparation of the preliminary list the Bureau of Customs was
assisted ia Its omap^ttea by it« eoaw&edity valuation experts in vaideus
Custom exYieee throughout the country, la of whoa were eallsd te Iss'tdagtea
for periods of time t* aid in the etady. The esfterietiee and valye iafermatlon cf theee vsluatic® everts and other Customs persoaael around the
eeiattry were atHised extensively in the et~a>*
la the imvestigatf on of the presentations mm

by Interested parties

within c4 day* after fmbUcatieii of the preliminary list, additional
samples, value information and other data were obtained by the Bureau cf

ef the Treasury found would decrease ey 9% er mere wader the nee valaetien
procedure*. The section provided for the publication ef a preliminary list
cf such articles, baaed on Customs eaperlaaee la the fiscal year left*

The

preliminary list was peellshed August t% X9$f.
the Act further directed that within #0 days ef tee p-bUe*t±eo ef the
preliminary list, interested parties might present reasons tm their belief
that specific additions should be mace te the prel lad nary H a t tmm*smaat to
the Act* The procedures for the preeeatatloa ef such lafeaamtlca wete pah**
lished la the Federal Register ea Augmst 20* V&l.

The final list pnhllahsd

today encompasses the items on the preliminary list together with aaaltieas
made aa a result ef Treasury investigations ef the mrseea^ataeaa ef Interested parties during the 60~day peried*
The Act provides that JO days following the date ef p*fclleatleB ef the
final list, all articles net on the final list will se valwed under the sew
previsions* Articles cm the final list will continue te be appraised sneer
the eld law*
The new valuation procedures are set forth la section 2 of the Simclifiearnest
U e a Act* As already stated, they will apply te wJemmmmJemsjsmmm* United States
import* dutiable oa the basis cf value (ad valorem aad composed duty mershsfidise). Export value (the usual wholesale value In the foreign marmot for
trade with the felted States) will he the preferred basis ef valuation under
the sew procedures, Instead ef the clear formula cf the higher ef expert
value or foreign value (the usual wholesale value la the towmtm market for
heme eonsuaptloa) •

~>-y-'-^p>.,..yt^--^ v'"*' y

^.^yy,y

,}Whm( l%0LWmmtffl^
s)

^^^^
A- w y

Release A.M. Newspapers

A+*m<my January 2 $ 1958
The Treasury Department today announced that February %$, 1958, will
be the effective date for entry into force of the valuation provisions of
the Customs Simplification Act of 1956. All provisions of the Act will
then be in effect.
The announcement was accompanied by the publication today in the
Federal Register of the final list of the articles which, when imported

fyh>7jff^t>
into the United States on or after thai f\4tsi will continue to be valued
A
for customs purposes under the presently applicable provisions of the
Tariff Act of 1930 rather than under the new valuation provisions of the
Simplification Act.
It is expected that use of the new valuation provisions will result
in the simplification of customs work and the speeding up of final determination of the duties due on imported merchandise.

The new valuation

provisions will apply to most of the merchandise imported into the United
States which is dutiable on the basis of value.
&**... ..^w^a-w***-*^ STATUTORY BACKGROUND
•v™

Section 6(a) of the Simplification Act, an amendment added on the
Senate floor, provided that the Act's new valuation provisions were not
to be applicable to articles whose average dutiable value the Secretary

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Tuesday,, January 28, 1958.

A-148

The Treasury Department today announced that February 27,
1958, will be the effective date for entry into force of the
valuation provisions of the Customs Simplification Act of 1956.
All provisions of the Act will then be in effect.
The announcement was accompanied by the publication today in
the Federal Register of the final list of the articles which, when
imported into the United States on or after February 27, 1958,
will continue to be valued for customs purposes under the
presently applicable provisions of the Tariff Act of 1930 rather
than under the new valuation provisions of the Simplification Act.
It is expected that use of the new valuation provisions will
result in the simplification of customs work and the speeding up
of final determination of the duties due on imported merchandise.
The new valuation provisions will apply to most of the
merchandise imported into the United States which is dutiable on
the basis of value.
STATUTORY BACKGROUND
Section 6(a) of the Simplification Act, an amendment added
on the Senate floor, provided that the Act's new valuation provisions were not to be applicable to articles whose average
dutiable value the Secretary of the Treasury found would decrease
by 5$ or more under the new valuation procedures. The section
provided for the publication of a preliminary list of such
articles, based on Customs experience in the fiscal year 195^*
The preliminary list was published August 23, 1957.
The Act further directed that within 60 days of the publication
of the preliminary list, interested parties might present reasons
for their belief that specific additions should be made to the
preliminary list pursuant to the Act. The procedures for the
presentation of such information were published in the Federal
Register on August 20, 1957. The final list published today
encompasses the items on the preliminary list together with
additions made as a result of Treasury investigations of the
presentations of interested parties during the 60-day period.
The Act provides that 30 days following the date of
publication of the final list, all articles not on the final list
will be valued under the new provisions. Articles on the final
list will continue to be appraised under the old law.

l4u
*» 2

«•

The new valuation procedures are set forth in section 2 of
the Simplification Act. As already stated, they will apply to
most United States imports dutiable on the basis of value
(ad valorem and compound duty merchandise). Export value (the
usual wholesale value in the foreign market for trade with the
United States) will be the preferred basis of valuation under
the new procedures, instead of the older formula of the higher of
export value or foreign value (the usual wholesale value in the
foreign market for home consumption).
A number of changes in definition which will permit an export
value to be determined more readily are also contained in section 2.
EXTENSIVE STUDY CONDUCTED
Following the approval of the Simplification Act of 1956
on August 2, 1956, with its provision for an excepted list, the
Treasury Department and its Bureau of Customs instituted a
thoroughgoing study of imported commodities as to which the duty
in fiscal year 1954 was dependent on value. This study embraced
some 2,588 different commodity numbers or classifications covering
merchandise subject to ad valorem and compound rates of duty.
The starting point for this study was an original survey prepared
for Congress in 1955 and 1956 covering imports of such merchandise
in fiscal year 1954. The original 20,000 samples contained in the
survey prepared for Congress were supplemented by 9,500 additional
samples in preparation of the preliminary and final lists in
cases where it was felt that more information was needed.
In the preparation of the preliminary list the Bureau of
Customs was assisted in its compilation by its commodity valuation
experts in various Customs offices throughout the country, 41 of
whom were called to Washington for periods of time to aid in the
study. The experience and value information of these valuation
experts and other Customs personnel around the country were
utilized extensively in the study.
In the investigation of the presentations made by interested
parties within 60 days after publication of the preliminary list,
additional samples, value information and other data were obtained
by the Bureau of Customs from its valuation experts in all cases
where it was felt that additional information was needed to
adequately evaluate the presentations made. Many of the
presentations covered items not imported in fiscal year 1954 and
consequently not covered in the study upon which the preliminary
list was based. In such cases, studies comparable to those made
in the preparation of the preliminary list were made for such
commodities for later years.

J. HA.
- 3 In the preparation of the preliminary and final lists the
greatest care was exercised in applying the statute to the many
varied factual situations existing. Particular attention was
given, wherever possible, to describing various articles
comprising a single commodity classification in such exact terms
that specific articles which would incur an average valuation
decrease of 5$ or more under the new procedures would be placed
on the list and articles included in the classification incurring
no such average decrease would not be placed on the list.
STATISTICAL SUMMARY
As a result of investigations of presentations made following
the publication of the preliminary list, 3 commodity numbers not
included on the preliminary list are covered on the final list in
full and 6 commodity numbers not on the preliminary list have at
least some but not all items covered by the commodity number
included on the final list. Also, the final list includes
additional items not on the preliminary list for 22 commodity
numbers which were covered in part on the preliminary list.
In total 139 commodity numbers are included on the final list
in full and 230 commodity numbers have some but not all items
included on the final list.
The estimated fiscal 1954 dollar value of importations of
all items included on the final list amounts to approximately
$234,000,000 (dollar value of items not imported in fiscal year
1954 is included as the dollar value for the subsequent fiscal
year closest to fiscal year 1954 for which there were importations).
This constitutes 16.6$ of the total fiscal 1954 dollar volume of
importations dutiable on the basis of value and approximately
2.3$ of the total dollar volume of all fiscal 1954 importations.

0O0

3
j.4'2

New Orleans - Homer G. Bartee, Vice President and General Manager, Southern Be
Telephone & Telegraph Co.
New York - Eugene Holman, ^resident, Standard Oil Co. of New Jersey.
Philadelphia - Joseph A. Fisher, President, The Reading Co.
Pittsburgh - Harry B. Higgins, Director, Pittsburgh Plate Glass Co.
Portland - Frank E. McCaslin, President, Oregon Portland Cement Co.
Providence - Raymond H. Trott, Chairman of Board, Rhode Island Hospital Trust Co.
Rochester - Schuyler C. Wells, Jr., General Manager, Shearson & Hammill Co.
San afrancisco-Oakland - Norman R. Sutherland, President, Pacifi©1 Gas
& Electric Co.
Seattle - William M. Allen, President Boeing Airplane Co.
St. Louis - Arthur K. Atkinson, President, Wabash Railroad.
St. Paul - Frank H. Delaney, President, First Grand Avenue State Bank

Atlanta - Jack Crowder, Regional Manager Cluett Peabody Co.
Baltimore - Robert D. Black, President and Chairman of Board, Black & Decker
Manufacturing Co.
Birmingham - Claude S. Lawson, President, TJ.S. Pipe & Foundry Co.
Boston - Bryan 3. Smith, President Liberty mtual Insurance Co.
Buffalo - Ralph* F. Peo, President. Houdaille Industries, Inc.
Chicago - Meyer Kestnbaum, President Hart Schaffner & Marx
Cincinnati - Lloyd I. ?Jiller, Chairman of Board, Cincinnati Transit Co.
Cleveland £ Paul W. Johnston, Chairman of Board, Erie Railroad.
Columbus - John H. Fulford, President Jeffery ifemufacturing Cn.
Dallas - Frederick D. Detweiler, President, Chance Vought Aircraft,Inc.

Denver - Frank A. Kemp, ^resident and General lianager, Great Western Sugar Co.
Detroit - Irving A. Duffy, Vice President, Ford ::otor Co.
Vice
Gary-Hammond - A.I. Cochrane, Assistant to/President, Youngstown Sheet & Tube Co.
Hartford - Frazar B. Wilde, President, Connecticut General Life Insurance Co.
Houston - Roy H. Cull en, President, Quintana Oil &o. (,/rrv**j^v Oft-****!.*
Kansas City - Ktonath W. Lineberry, President, Black, Sivalls & Bryson, Inc.
Los Angeles - Robert E. Gross, Chairman of Board, Lockheed Aircraft Corp.
Louisville - Charles K. Rieger, Vice President and General Manager, General
Electric Co.
I£Llwaukee - John M. Nuzum, President, First Tfisconsin Trust C .
vinneapolis - A?resident, ianneapolis Gas C •
Newark - Carrol Lr. Shanks, President, Prudential Life Insurance Co.

is, •-*

"E1EASE SUNDAY NEWSPAPERS
January 26, 1958

Treasury Secretary Anderson today announced that 3_sPE-^ifi-i American
business leaders and industrialists have volunteered to serve as ihairmen ^CrfA
campaigns in as many metropolitan centers of the c ountry
this spring for the sale of TJJLIT Li il " I! 11 u. Savings Bonds on the payroll
savings plan*
Secretary

The volunteer chairzien
tJ
J_***~ **

£•+

"t-m.

y&~f
for the.sales drive, and are now
Anderson umiiiiiiiir
2Q_s~a~i3das-3p associates among t o p ^
consulting 7ri.thND^usinl^iriiS3^^
of the various communities
on final arrangements. Dates for the campaigns will be announced in all of
the metropolitan centers within a short time.
country1 s
The 33^centers are the homes of about 80 percent of the*larger
industries. An effort will be made to give every employee in every

plant .an opportunity to sign up for, JMIIIIIIII H IUIII I i 1 ii' geg3gqS3Earac&3a^gg±aa

J A

bond Durchases.

"This will be the most important payroll savings promotion we have
undertaken in many years,"yi^TiSnaT^ of the

Treasury's Savings Bonds ^i I ~*MII jflJlFliiilnl i >iiiihrnilrnw^n^n»niinVgHete«a-»-e
The list of business and industry executives who are undertaking the /
bond ..drive leadership follows: ^y^

h^uj£[ i*Jr ±°**4
i* ftf C+>S&.&mf d^O,M*7f
C&>**&1***£*\ (0*&f\

jfam~<

•

fmf
•*V^-"\. Irr\^m\

jmm*aX*4>*-~* jtm*.§ir#ug%

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE SUNDAY NEWSPAPERS,
January £6, 1958.

A-149

Treasury Secretary Anderson today announced that 32 American
business leaders and industrialists have volunteered to serve as
chairmen to launch new vigorous campaigns in as many metropolitan
centers of the country this spring for the sale of Savings Bonds
on the payroll savings plan.
The volunteer chairmen met in Washington last week with
Secretary Anderson to discuss plans for the new sales drive, and
are now consulting with associates among top business and
industry executives of the various communities on final arrangements. Dates for the campaigns will be announced in all of the
metropolitan centers within a short time.
The 32 centers are the homes of about 80 percent of the
country!s larger industries. An effort will be made to give
every employee in every plant in these centers an opportunity to
sign up for,or increase, regular bond purchases,
"This will be the most important payroll savings promotion
we have undertaken in many ;aars," said Jamas P. Stiles, Jr., new
National Director of the Treasury's Savings Bonds Division.
Mr. Stiles who was sworn in as National Director last week,
participated in the conferences of the metropolitan center
volunteer chairmen with Secretary Anderson.
The list of business and industry executives who are undertaking the bond drive leadership follows:
Atlanta - Jack Crowder, Regional Manager, Cluett Peabody Co.
Baltimore - Robert D. Black, President and Chairman of Board,
Black & Decker Manufacturing Co.
Birmingham - Claude S. Lawson, President, U.S. Pipe &
Foundry Co.
Boston - Bryan E. Smith, President, Liberty Mutual
Insurance Co.
Buffalo - Ralph P. Peo, President, Houdaille Industries, Inc.
Chicago - Meyer Kestnbaum, President, Hart Schaffner & Marx

"2 -

146

Cincinnati - Lloyd I. Miller, Chairman of Board, Cincinnati
Transit Co.
Cleveland - Paul W. Johnston, Chairman of Board, Erie
Railroad.
Columbus - John H. Pulford, President, Jeffery Manufacturing Co.
Dallas - Frederick D. Detweiler, President, Chance Vought
Aircraft, Inc.
Denver - Frank A. Kemp, President and General Manager,
Great Western Sugar Co.
Detroit - Irving A. Duffy, Vice President, Ford Motor Co.
Gary-Hammond - A.I. Cochrane, Assistant to Vice President,
Youngstown Sheet & Tube Co.
Hartford - Prazar B. Wilde, President, Connecticut General
Life Insurance Co.
Houston - Roy H. Cullen, President, Quintana Oil Co.
(Houston campaign now under way.)
Kansas City - Kenneth W. Lineberry, President, Black,
Sivalls & Bryson, Inc.
Los Angeles - Robert E. Gross, Chairman of Board,
Lockheed Aircraft Corp.
Louisville - Charles K. Rieger, Vice President and General
Manager, General Electric Co.
Milwaukee - John M. Nuzum, President, First Wisconsin
Trust Co.
Minneapolis - Gerald T. Mullin, President, Minneapolis Gas Co.
Newark - "Carrol M. Shanks, President, Prudential Life
Insurance Co.
New Orleans - Homer G. Bartee, Vice President and General
Manager, Southern Bell Telephone &
Telegraph Co.
New York - Eugene Holman, President, Standard Oil Co. of
New Jersey.
Philadelphia - Joseph A. Fisher, President, The Reading Co.
Pittsburgh - Harry B. Higgins, Director, Pittsburgh Plate
Glass Co.

- 3-

.. .,
.

• •

i"f i

Portland - Frank E. McCaslin, President, Oregon Portland
Cement Co.
Providence - Raymond H. Trott, Chairman of Board, Rhode Island
Hospital Trust Co.
Rochester - Schuyler C. Wells, Jr., General Manager,
Shearson & Hammill Co.
San Francisco-Oakland - Norman R. Sutherland, President,
Pacific Gas & Electric Co.
Seattle - William M. Allen, President Boeing Airplane Co.
St. Louis - Arthur K. Atkinson, President, Wabash Railroad.
St. Paul - Frank H. Delaney, President, First Grand Avenue
State Bank

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TABUS 3

•< V D ^

FORECAST OF CASH BALANCE AND DEBT, JANUARY, 1958 - JUNE, 1959
BASED ON CONSTANT OPERATING CASH BALANCE OF $3.5 BILLION (excluding free gold)
(in billions)
Operating Balance Allowance to Provide flexibility
in financing and
and for
contingencies

Total public
debt limitation required

January 31, 1958 .... $3.5 $275.0 $3.0 $278.0
February 15
3.5
275.6
February 28
3.5
274.9

3.0
3.0

278.6
277.9

March
Iferch
April
April

Federal Reserve Banks Public Debt
and Depositaries
subject to
(excluding free gold) limitation

15 3*5 276.2 3.0 279.2
31
3.5
15
3.5
30
3.5

270*4
271.8
272.2

3.0
3.0
3.0

273.4
274.8
275.2

May 15 3.5 272.5 3.0 275.5
May 31
3.5
June 15
3.5
June 30
3.5

272.1
273.9
269.3

3.0
3.0
3.0

275.1
276.9
272.3

July 15 3.5 271.6 3.0 274.6
July 31
3.5
August 15
3.5
August 31
3.5

272.6
273.5
273.6

3.0
3.0
3.0

275.6
276.5
276.6

September 15 3.5 275.2 3.0 278.2
September 30
3.5
October 15
3.5
October 31
3.5

271.3
273.4
274.7

3.0
3.0
3.0

274.3
276.4
277.7

November
November
December
December

275.0
277.1
275.3

3.0
3.0
3.0

278.0
280.1
278.3

January 15, 1959 .... 3.5 276.9 3.0 279.9
January 31
3.5
February 15
3.5
February 28
3.5

276.1
276.8
275.4

3.0
3.0
3.0

279.1
279.8
278.4

Bferch 15 3.5 276.6 3.0 279.6
March 31
3.5
April 15
3.5
April 30
3.5

271.3
272.8
273.1

3.0
3.0
3.0

274.3
275.8
276.1

my 15 3.5 273.4 3.0 276.4
my 31
June 15
June 30

273.1
274.9
269.3

3.0
3.0
3.0

276.1
277.9
272.3

15 3.5 275.3 3.0 278.3
30
3.5
15
3.5
31
3.5

3.5
3.5
3.5

NOTE: When the 15th of a month falls on Saturday or Sunday, the figures relate to t
following business day.
January 27, 1958

-7 normally be utilized only at the time of large new financing, and then
for a short period.

It can best be described as an overlapping opera-

tion needed until the proceeds are used either for attrition or the
voluntary retirement of Treasury bills or other maturing debt.
I would like to repeat, Mr. Chairman, my pledge to the members
of the Committee on Ways and Means of the House that:

"We of the

Treasury assure you and the members of this Committee and the Congress
that we will exert all of our abilities to achieve the utmost economy
in Government operations and to manage the public debt as best we can
in the national interest."

0 o 0

-6 securities would have to be more generous than would otherwise be required. If the attrition proves to be greater than anticipated, the
Treasury has to go back into the market almost Immediately to restore
working balances, even before the previous issue has been distributed
properly. This threat of a new issue hanging over the market creates
uncertainty in the minds of investors and keeps the market for U. S.
Government securities in a weak position. It also unreasonably handicaps the normal financing operations of States, municipalities, and
private businesses.
If, on the other hand, a cash offering is included in the refunding
program and the market were to improve between the date of announcement
of new U. S. Government financing and the date the boo^s close, the
attrition might be substantially less than anticipated. In such event,
the Treasury must calculate that it runs the risk of inadvertently exceeding the limit for a short period.
While we subscribe fully to the principle that every expenditure
should be scrutinized carefully in the interest of the maximum economy
and efficiency, the ability to pay our bills is not the sole consideration in this problem. However, in our opinion an increase of $5 billion
is necessary to provide adequate working balances, flexibility and a
modest provision for contingencies that we deem essential to prudent and
economical debt management.
It should also be made clear that the portion of the requested increase in the debt limit that is required for needed flexibility would

- 5b«st judgment at this early date, and I am submitting for your information
these figures in the attached Table 3. These figures are based on the
assumption that for an operation of this size we should have cash on
hand equal to at least twelve days' expenditures - about $3.5 billion.
We have assumed this balance at the middle and at the end of each month
with the full realization that between these dates the cash might be
below or above this level by a substantial amount. This margin is necessary to keep the Treasury in a strong position to meet wide fluctuations
in expenditures and to minimize our vulnerability to slow collections
because of weather conditions affecting the mails or other conditions
beyond our control.
In addition to this moderate working balance, we are of the opinion
that a reasonable margin for contingencies and provision for flexibility
in financing is very important in the public interest. What we mean by
"flexibility" involves a rather technical explanation, but I will try to
make it clear. For example, if we go into the market to refund an outstanding issue, regardless of the terms of the new issue, we must take
into consideration the fact that in the normal course of business certain
holders of these securities will need cash. Others will decide that the
terms of the new securities do not meet their particular investment requirements and therefore they too will take payment for their maturing
securities in cash. So long as the debt margin is very narrow, and cash
balances low, the Treasury has to estimate carefully what this attrition
(maturing securities presented for cash payment) will be so as not to
be in a position where the Treasury could not make payment for all maturing
obligations presented. This might mean that the coupon rate on the new

1 ^J
- 3The figures on this chart do not include $3 billion of tax
anticipation bills which we expect to pay off in March, nor do they
include $22 billion of regular 90-day Treasury bills which we normally
turn over four times a year.
Chart k shows the total volume of Treasury financing that has
taken place in recent years, which again excludes the regular Treasury
bills that we roll over quarterly. The total, for example, in 1957
was $65-5 billion, of which we were able to extend $8.8 billion beyond
one year in one- to five-year notes, and $1-3 billion in 12- and 17-year
bonds.
Some part of this debt is coming due each month, so that at all
times the Treasury is faced with substantial refunding problems. An
objective of sound fiscal policy is to extend the maturity of new issues
whenever opportunities are available, so as to avoid concentrating too
large a portion of the public debt in the area of short maturities.
During the past several months, we have been able to issue only relatively
small amounts of longer maturities on two occasions.
We should be able to take advantage of any such favorable opportunities that may arise in the period ahead of us. Under the present debt
limit, we are not able to take full advantage of such opportunities by
selling long-term issues in advance to retire part of the maturing issues.
The need for temporarily overlapping of the debt will be explained later.
We will still experience in fiscal year 1959 a continuation of
seasonal peaks in the collection of corporate income taxes. These collections of corporate taxes are gradually being leveled off, but there

- 2 Chart 2 compares the debt outstanding in recent years with the
debt limit. I should like here to call your attention particularly
to the fact that the Treasury operated very close to the $275 billion
limit during the fiscal year 195^, but to keep under the limit we had
to adopt relatively costly expedients. There was somewhat more leeway
under the temporary debt increase to $28l billion during the fiscal
year 1955, but in the fiscal year 1956 the debt was very close to the
limit during a substantial part of the winter. There was a little
greater margin under the limit a year ago, but, as the chart depicts,
during the past several months the Treasury has been extremely close
to the debt limit. You will note that we normally have sufficient
margin under the debt limit on June 30 of each year and that it is
during the winter when the limit is the most restrictive.
One of the most serious difficulties encountered by the Treasury
in operating under the present limitation is the problem of carrying
out our financing in an orderly and economical manner. A large portion of our public debt is made up of securities with relatively short
maturity. More than $25 billion of Treasury bills mature within the
next 90 days and more than $50 billion of Treasury certificates, notes
and bonds are coming due in the calendar year 1958.
I should like here to call your attention to Charts 3 and k.
Chart 3 shows that our first maturity in calendar 1958 is on
February lk and that we have some further maturities almost every month
during the rest of the year. Maturities on Chart 3 total $50.2 billion,
of which $21.3 billion is held by Federal Reserve Banks and Government
investment accounts.

TREASURY DEPARTMENT
WASHINGTON

Statement by Treasury Secretary Anderson
before Senate Finance Committee on H.R. 9955,
a b i n to amend the Statutory Debt Limitation,
10 A.M. E.S.T., Monday, January 27, 1958
H.R. 9955, which was passed by the House of Representatives and
is now before your Committee for consideration, provides a temporary
increase from $275 billion to $280 billion until June 30, 1959, in the
statutory limitation on the public debt.
I sent to each member of the Committee a copy of my statement (with
accompanying tables and charts) before the House Ways and Means Committee
on January 17. I am attaching the same exhibits and would like to
review them briefly with you this morning.
Before doing so, however, I want to emphasize again that the need
at this time for a debt limit increase is based on:
1. The fact that cash balances have been running
distressingly low, as I will show in detail later.
2.' There is need for more flexibility for more efficient
and economical management of the debt.
3. Even with a balanced budget there will still be large
seasonal fluctuations in receipts which make operations
under the $275 billion limitation most difficult.
I would like to direct your attention to Table 1, which summarizes
the various changes in the statutory debt limitation during the past
forty years. Previous changes made in the debt limitation consistently
provided larger margins between the outstanding debt and the successive
limits than now exist or which would result from the temporary increase
under consideration.

A-150

TREASURY DEPARTMENT
WASHINGTON

156

Statement by Treasury Secretary Anderson
before Senate Finance Committee on H.R. 9955;
a bill to amend the Statutory Debt Limitation,
10 A.M. E.S.T., Monday, January 27, 1958
H.R. 9955, which was passed by the House of Representatives and
is now before your Committee for consideration, provides a temporary
increase from $275 billion to $280 billion until June 30, 1959, in the
statutory limitation on the public debt.
I sent to each member of the Committee a copy of my statement (with
accompanying tables and charts) before the House Ways and Means Committee
on January 17• I am attaching the same exhibits and would like to
review them briefly with you this morning.
Before doing so, however, I want to emphasize again that the need
at this time for a debt limit increase is based on:
1. The fact that cash balances have been running
distressingly low, as I will show in detail later.
2. There Is need for more flexibility for more efficient
and economical management of the debt.
3. Even with a balanced budget there will still be large
seasonal fluctuations in receipts which make operations
under the $275 billion limitation most difficult.
I would like to direct your attention to Table 1, which summarizes
the various changes in the statutory debt limitation during the past
forty years. Previous changes made in the debt limitation consistently
provided larger margins between the outstanding debt and the successive
limits than now exist or which would result from the temporary increase
under consideration.

A-150

Chart 2 compares the debt outstanding in recent years with the
debt limit. I should like here to call your attention particularly
to the fact that the Treasury operated very close to the $275 billion
limit during the fiscal year 195^, but to keep under the limit we had
to adopt relatively costly expedients. There was somewhat more leeway
under the temporary debt increase to $28l billion during the fiscal
year 1955, but in the fiscal year 1956 the debt was very close to the
limit during a substantial part of the winter. There was a little
greater margin under the limit a year ago, but, as the chart depicts,
during the past several months the Treasury has been extremely close
to the debt limit. You will note that we normally have sufficient
margin under the debt limit on June 30 of each year and that it is
during the winter when the limit is the most restrictive.
One of the most serious difficulties encountered by the Treasury
in operating under the present limitation is the problem of carrying
out our financing in an orderly and economical manner. A large portion of our public debt is made up of securities with relatively short
maturity. More than $25 billion of Treasury bills mature within the
next 90 days and more than $50 billion of Treasury certificates, notes
and bonds are coming due in the calendar year 1958.
I should like here to call your attention to Charts 3 and k.
Chart 3 shows that our first maturity in calendar 1958 is on
February 1^ and that we have some further maturities almost every month
during the rest of the year. Maturities on Chart 3 total $50.2 billion,
of which $21.3 billion is held by Federal Reserve Banks and Government
investment accounts.

156
- 3 The figures on this chart do not include $3 billion of tax
anticipation bills which we expect to pay off in March, nor do they
include $22 billion of regular 90-day Treasury bills which we normally
turn over four times a year.
Chart k shows the total volume of Treasury financing that has
taken place in recent years, which again excludes the regular Treasury
bills that we roll over quarterly. The total, for example, in 1957
was $65*5 billion, of which we were able to extend $8.8 billion beyond
one year in one- to five-year notes, and $1.3 billion in 12- and 17-year
bonds.
Some part of this debt is coming due each month, so that at all
times the Treasury is faced with substantial refunding problems. An
objective of sound fiscal policy is to extend the maturity of new issues
whenever opportunities are available, so as to avoid concentrating too
large a portion of the public debt in the area of short maturities.

During the past several months, we have been able to issue only relatively
small amounts of longer maturities on two occasions.
We should be able to take advantage of any such favorable opportunities that may arise in the period ahead of us. Under the present debt
limit, we are not able to take full advantage of such opportunities by

selling long-term issues in advance to retire part of the maturing issues.
The need for temporarily overlapping of the debt will be explained later.
We will still experience in fiscal year 1959 a continuation of
seasonal peaks in the collection of corporate income taxes. These colJLectiorB of corporate taxes are gradually being leveled off, but there

159
- k are still large seasonal fluctuations. Under these circumstances, it
is necessary for the Treasury to borrow large sums in the July - December
period to meet expenditures, and to pay off such borrowings in the
January - June period, even in years when we have balanced budgets.
I should like to direct your attention to Charts 5; 6, and 7«
Chart 5 shows quite vividly the seasonal peaks and valleys of the Federal
Budget. This clearly indicates the extent to which heavy Treasury borrowing is required during each July through December budget deficit
period in anticipation of a budget surplus in the following spring.
Chart 6 is illustrative of the fact that in recent years there is
less marked seasonal movement in budget expenditures than in receipts,
and, if you look at Chart 7 in relation to Chart 6, you see the reason

for the big seasonal swing in the Government's deficit or surplus position
Chart 7 reflects the way in which taxes flow into the Treasury. As I have
said, some of this unevenness is being ironed out slowly as a result of
the corporate tax collection change under the Revenue Code of 195*S but
still it has a way to go.
It is difficult to make precise month-to-month forecasts which
reflect all cash operations of the Government, including collection of
a great many types of revenues, the rates of expenditures under the
program of each agency, the issuance and retirement of our public debt
obligations, and all of the multitude of operations reflected in the
total inflow and outflow of the Treasury. We have, however, attempted
such estimates of the public debt and cash balances, based upon our

- 5best judgment at this early date, and I am submitting for your information
these figures in the attached Table 3. These figures are based on the
assumption that for an operation of this size we should have cash on
hand equal to at least twelve days* expenditures - about $3.5 billion.
We have assumed this balance at the middle and at the end of each month
with the full realization that between these dates the cash might be
below or above this level by a substantial amount. This margin is necessary to keep the Treasury in a strong position to meet wide fluctuations
in expenditures and to minimize our vulnerability to slow collections
because of weather conditions affecting the mails or other conditions
beyond our control.
In addition to this moderate working balance, we are of the opinion
that a reasonable margin for contingencies and provision for flexibility
in financing is very important in the public interest. What we mean by
"flexibility" involves a rather technical explanation, but I will try to
make it clear. For example, if we go into the market to refund an outstanding issue, regardless of the terras of the new issue, we must take
into consideration the fact that in the normal course of business certain
holders of these securities will need cash. Others will decide that the
terms of the new securities do not meet their particular investment requirements and therefore they too will take payment for their maturing
securities in cash. So long as the debt margin is very narrow, and cash
balances low, the Treasury has to estimate carefully what this attrition
(maturing securities presented for cash payment) will be so as not to
be In a position where the Treasury could not make payment for all maturing
obligations presented. This might mean that the coupon rate on the new

-6 -

securities would have to be more generous than would otherwise be required. If the attrition proves to be greater than anticipated, the
Treasury has to go back into the market almost immediately to restore
working balances, even before the previous issue has been distributed
properly. This threat of a new issue hanging over the market creates
uncertainty in the minds of investors and keeps the market for U. S.
Government securities in a weak position. It also unreasonably handicaps the normal financing operations of States, municipalities, and
private businesses.
If, on the other hand, a cash offering is included in the refunding
program and the market were to improve between the date of announcement
of new U. S. Government financing and the date the books close, the
attrition might be substantially less than anticipated. In such event,
the Treasury must calculate that it runs the risk of inadvertently exceeding the limit for a short period.
While we subscribe fully to the principle that every expenditure
should be scrutinized carefully in the interest of the maximum economy
and efficiency, the ability to pay our bills is not the sole consideration in this problem. However, in our opinion an increase of $5 billion
is necessary to provide adequate working balances, flexibility and a
modest provision for contingencies that we deem essential to prudent and
economical debt management.
It should also be made clear that the portion of the requested increase in the debt limit that is required for needed flexibility would

162
- 7normally be utilized only at the time of large new financing, and then
for a short period. It can best be described as an overlapping operation needed until the proceeds are used either for attrition or the
voluntary retirement of Treasury bills or other maturing debt.
I would like to repeat, Mr. Chairman, my pledge to the members
of the Committee on Ways and Means of the House that: "We of the
Treasury assure you and the members of this Committee and the Congress
that we will exert all of our abilities to achieve the utmost economy
in Government operations and to manage the public debt as best we can
in the national interest."

0 o 0

163
TABLE 1

iDSBT LIMITATION
1—
TOPER ACTION 21 PIT THE SECOND LIBERTY BOND ACT AS AMETOD
KISTOSY OF LEGISLATION

m 2321
DcVs. 2v, 1517, Coo. 1 (kO Stat.2SS) author!eed bonds in tha
emount of .*.......
$7.53^.9^5.**00 (a)
Soc. 5 (340 Stat.290) authorized certificates
of indebtedness outstanding (revolving authority) k9000,000,000 (b)
121S
Anr. h. 191S, amending Seo. 1 (^0 Stat.502) increased bond
authority to
12,000,000.000 (a)
emending Seo. 5 (^0 Stat.^OH) increased authority for oertifioatoB outstanding to ............. 8,000,000,000 (b)
July 9. 191S. amending Seo. 1 (^0 Stat.g^H) inoreaaed bond
authority to

20.000.000,000 (a)

2311
Mar. 3. 1919. amending Seo. 5 (UO Stat.l31l) inoreaaed authorMar.
J>, 1W.
^ f ^ c e r t i f ^ c a t e Q outstanding to
10.000,000.000 (b>
JSfou Sootion 18 added (UO Stat.1309) authorised
notes in the amount of
7.000,000,000 (a)
1921
Hov* 23, 1921, amending Seo. IS 0+2 Stat.321) inoreaeed note
authority to outstanding (establishing revolving
authority)

7.500.000.000(b)

June 17, 1929, amending See 5 0*6 Stat.19) authorized Treasury
Mllo in lieu of certificates of indebtedness,
no change in limitation for the outotanding ..... 10.000,000,000

164
- 2-

1221
JT-

3, 1931, finding Sec. 1 (46 3tat.l50o) increased bond
authority to

$28,000,000,000 (a)

123A
an. 30, 1934, amending Sec. 18 (48 Stat.343) increased authority for notos outstanding to
10,000,000,000 (b)
1935
eb* U9 1935* amending Sec. 1 (49 Stat.20) limited bond3 outstanding (establishing revolving authority to .. 25,000,000,000 (b)
New section 21 added (49 Stat.21) consolidated
•authority for certificates and bills (sec.5)
and authority for notes (sec. 18). Same aggregate amount outstanding
20,000,000,000 (b)
Now section 22 added (49 ^>tat.2l) authorized
United States Savings Bond.3. within authority
of Sec. 1.

ism
lay -&, 1938 amending Sections 1 and 21 (52 St at. 447) consolidated in section 21, authority for bonds,
certificates of indebtedness, Treayury bills
and notes (outstanding bonds limited to
$30,000,000,000). Same aggregate total outstanding
45,000,000,000 (b)

1222
July 20 1939 amending Sec. 21 removed limitation on bonds
(53 0tat*107l) without change total authorized outstanding
of bonds, certificates of indebtedness, Treasury bills and notes

45,000,000,000 (b)

12~__
June 25 1940, Soc. 302, Section 21 of the Second Liberty Bond
(5U Stat*525) Act, as amended, is hereby further amended by
inserting "(a)" after "21." and by adding at the
end of such section a new paragraph as follovra:
"(b)" In addition to the amount authorized
by the preceding paragraph of thisflection,any
obligations authorized by sections 5 and IS of
this Act, as emended, not to exceed in the aggre-

-3 -

*G$
mo 25, 1940, gate 04,000,000,000 outsthiding at any one t W
(cont'd;
less any retirements made from the special fund
made available under section 301 of- the Revenue
Act of 1940, may be issued under said sections
to provide the Treasury -,vith funds to meet any
expenditures made, after June 30, 194O, for the
national defense, or to reimburse the gnneral fund
of the Treasury therefor, any such obligations so
issued shall be designated 'National Defense
Sorie3t M
•

$ 4,000,000,000 (c)

19a
eb. 19, 1941, amending Sec. 21 to read "Provided that the face
[55 Gtat*j)
amount of obligations issued under the authority
of this Act shall not exceed in the aggregate
$05,000,000,000 outstanding at any one time."
Klindnates separate authority for ^4,000,000,000
of National Defense Series obligations
.,* 6^,000,000,000 (b)

12A2
ar. 28, 1942, amending Section 21 increasing limitation to
[$S OtatkLCg) 6125,000,000,000

125,000,000,000 (b)

1943
pr. 10, 1943, amonding Section 21 increasing limitation
(57 fltat.63) to $210,000,000,000

210,000,000,000 (b)

22AA
uno 9, 1944, amending Section 21 increasing limitation
($3 Stat.272) to $260,000,000,000
*

260,000,000,000 (b)

mi
pr. 3, 1945, amending Section 21 to read: "The face amount of
(59 Stat*^7) obligations issued under authority of this Act, and
the face amount of obligations guaranteed as to
principal and interest by the United States (except such guaranteed obligations as may bo held
by the Secretary of the Treasury), shall not exceed in the aggregate #300,000,000,000 outstanding at any ono time."
300,000,000,000 (b)

leb
- k19h6
June 26, 19**6, amending Section 21 decreasing limitation to
(60 Stat. 316)
$275,000,000,000 and adding, "the current redemption value of any obligation issued on a
discount basis which is redeemable prior to
maturity at the option of the holder thereof shall
be considered, for the purposes of this section,
to be the face amount of such obligation."
$275,000,000,000 (b)
19_5_+
Aug. 28, 195U amending Section 21, effective August 28, 1951*, and
(68 Stat. 895)
ending June 30, 1955> temporarily increasing
limitation by $6 billion to
$281,000,000,000 (b)
1955
June 30, 1955 ' amending Aug. 28, 195^ Act, by extending until
(69 Stat. 2kl) June 30, 1956, increase in limitation to
$281,000,000,000 (b)
1956
July 9, 1956 amending Act of Aug. 28, 195U, temporarily increas(70 8tat. 519)
ing limitation by $3 billion, for period beginning on
July 1, 1956, and ending on June 30, 1957, to .... $278,000,000,000 (b)
1957
Effective July 1, 1957> temporary increase
terminates and limitation reverts, under Act
of June 26, 19^6, to

(a) Limitation on issue.
(b) Limitation on outstanding.
(c) Limitation on issues less retirements.

$275,000,000,000 (b)

TABLE 2

iff?

MARKETABLE MATURITIES JANUARY 1958 THROUGH DECEMBER 1958 -?/
(In millions of dollars)

Total amount
Maturity date
1958

Security
(Issue date)

outstanding
12/31/57

Feb. I** 3-3/8$ Certificate (2/15/57) $10,851
Mar. 15 2-1/2$ Bond (6/2/1*1) I,hk9
Apr. 1 1-1/2$ Exchange Note (VV53) 585
Apr. 15 Special Bill (8/21/57) 1,751
Apr. 15 3-1/2$ Certificate (5/1/57) 2,351
June 15 2-7/8$ Note (12/1/55) ^,392
June 15 2-3/8$ Bond (7/1/52) ^,2^5
June 15 2-3A$ Bond of 1958-63 (6/15/38) i/ 919
Aug. 1 ^Certificate (8/1/57) 11,519
Oct. 1 1-1/2$ Exchange Note (IO/I/53) 121
Dec. 1 3-3A$ Certificate (12/1/57) 9,830
Dec. 15 2-1/2$ Bond (2/15/53) 2>363
$50,179

1/ Partially tax exempt.

Callable June 15, 1958.

2/ Excludes $22.1 billion of regular weekly Treasury bills and

TABLE 3

168

FORECAST OF CASH BAIANCE AND DEBT, JANUARY. 1958 - JUNE. 1959
BASED ON CONSTANT OPERATING CASH BAIANCE OF $3.5 BILLION (excluding free gold)
(in billions)
Operating Balance Allowance to Provide flexibility
in financing and
and for
contingencies

Total public
debt limitation requirec

January 31, 1958 .... $3.5 $275.0 $3.0 $278.0
February 15
3.5
275.6
February 28
3-5
274.9

3.0
3.0

278.6
277.9

March 15 3.5 276.2 3.0 279.2
jferch 31
3.5
April 15
3.5
April 30
3.5

270.4
271.8
272.2

3.0
3.0
3.0

273.4
274.8
275.2

16yl5 3.5 272.5 3.0 275.5
16y31
June 15
June 30

3.5
3.5
3.5

272.1
273.9
269.3

3.0
3.0
3.0

275.1
276.9
272.3

July 15 3.5 271.6 3.0 274.6
July 31
3.5
August 15
3.5
August 31
3.5

272.6
273.5
273.6

3.0
3.0
3.0

275.6
276.5
276.6

September 15 3.5 275-2 3.0 278.2
September 30
3.5
October 15
3.5
October 31
3.5

271.3
273.4
274.7

3.0
3.0
3.0

274.3
276.4
277.7

November 15 3.5 275-3 3.0 278.3
November 30
3.5
December 15
3.5
December 31
3.5

275.0
277.1
275.3

3.0
3.0
3.0

278.0
280.1
278.3

January 15, 1959 .... 3.5 276.9 3.0 279.9
January 31
3.5

276.1

3.0

279.1

February 15

3.5

276.8

3.0

279.8

February 28

3.5

275.4

3.0

278.4

fcchl5 3.5 276.6 3.0 279.6
Lferch31
3.5
April 15
3.5
April 30
3.5

271.3
272.8
273.1

3.0
3.0
3.0

274.3
275.8
276.1

ibv 15 3.5 273.4 3.0 276.4
^ 3 ?
....
June 1 5 " " . . . .

3.5
3.5

273.1
274.9

3.0
3.0

276.1
277.9

2130::::::::::.:.

3.5

269.3

3.0

272.3

Federal Reserve Banks Public Debt
and Depositaries
subject to
(excluding free gold) limitation

NOTK: V/hen the 15th of a month falls on Saturday or Sunday, the figures relate to
following business day.
January 27, 1958

169

Chart I

.THE TREASURY CASH BALANCE PROBLEM.
*Bil.

Monthly Averages. Fiscal 1948-58

Operating Cash Balance as % of
Budget Expenditures

140

Operating
Cash Balance
\
.*••••

ari.
•^

,***w

***9m-m'-'-'-'

100

[Budget Expenditures]

1948
V

uiiii m ni> s»mi«j ui u * in

'52

'55

"58
Fiscal Years

170

Chart 2

PUBLIC DEBT OUTLOOK
$Bil.

280[_ Legal

Limit \

281 \
r —•->i i***^ i
274.4
Jan.I5,'58

270

260

250

1111111111111111

1954

1955

1956
—

Office of the Secretary of the Treasury

1957

Fiscal Years

1958

1959

Chart 3

MARKETABLE MATURITIES IN 1958
Excluding Regular and Tax Anticipation Bills
11.5

*Bil.
10.9

9.8
<_-7

Federal
Reserve Banks*

All Other
Investors

Callable

2.4

5.1

1.8

14
.4

1.7 2.2

l%%
2'/2% l'/2% Sp. 3'/2%
CI.
Bd. E.Nt. Bill C.I.
Feb. 14 Mar. 15 Apr. I »- Apr. 15-^

3.9 42

.9
2 7 / 8 % 2 3 / 8 % 23/4%
M.
Bd. Bd.
'
June 15
'

1.9
4%
CI.
Aug. I

* Including Government Investment Accounts.
Otiu gf U» Stcnuvy ol U . touuy

4.6

l'/2%
ENt.
Oct. I

33/4% 2'/2%
CI. Bd.
Oecl Dec. 15

Chart 4

VOLUME OF TREASURY MARKET FINANCING
(Excluding Weekly Roll-Over of Bills)

*Notes originally 20 months or less to maturity.
Olfcti uf ihw Sttfil&f) ol Ihc Ireasury

173

Chart 5

BUDGET SURPLUS OR DEFICIT-SEMIANNUAL
Fiscal Years 1 9 5 5 - 5 9
$Bil.

Budget Surplus
V

•5

+9.5:
+7.3:

'+6.6<

+ 6.4

L*5-l*
JulyDec.

JulyDec.

Jan.June

JulyDec.

JulyDec.
Jan.June

JanJune
-5.7

-5

-9.3::

•-6.I

•6.8

-79

Jan.June

Budget Deficit
-10

1955

Otfco of U * Sxntvy of U» Inuuy

'56

'58

"59

174

Chart 6

BUDGET EXPENDITURES-SEMIANNUAL
Fiscal Years 1955-'59

JulyDec.

Jan.June

— 1955—'
Oldie of Uu) Seiteldfy of the (rtA&uiy

JulyDec.
v

—1956

Jan.June

JulyDec.
v

1957

Jan.June

' *

JulyDec.

1958

Jan.June

July- Jan.Dec. June

1959—'

1 7Z
.*„ I

Chart 7

BUDGET RECEIPTS-SEMIANNUAL
Fiscal Years 1955-59

JulyJan.JulyJan.JulyJan.Dec. June Dec. June Dec. June Dec. June Dec. June
J

—1955 ' ' '56
Otfu of llu Secretary of m e treasury

July-

' '57 ' ' '58 ' ' '59 '

Jan.-

July-

Jan.-

tf*
(\

IMMEDIATE MLEASE,
Secretary Anderson today aimouitoet tha appolntmelit of
torn C&auneey, A^izmmJAwLo

and^t^ievision mxmmtlm,

a©

ehairsiaii of a new broadaaattrs advisory eoaaalfcfc#« for
U.S. Savings Bonds,

a*^

•Eh© eoiaiiittee will assist the treasury &SL
voluntaggr support of the Savings Bond* program fey loeal

A radio m&

television stations throughout the country.

Chauncey wtio is ©r@al<i@nt
KOOL and ®SK^»W in

F^n^i

and ®tn@ral manager of Stations

s aetiv|# in national affairs of

theferoaioastingindustry. His committee will include
represimtatives of both and large stations in all motions of
tbm country.
fii® radio and television Industries have Jong been amogg
the
/*m*mm.

active contributors to the promotion of the bond
loth national networks andl local stations participate

on a regular basis through the cooperation of the national
association of broadcasters and advertising council.

-T/

177
TREASURY D E P A R T M E N T
WASHINGTON, D.C.

IMMEDIATE RELEASE.
Friday* January 24. 1958.

A-151

Secretary Anderson today announced the appointment
of Tom Chauncey, Arizona radio and television executive,
as chairman of a new broadcasters1 advisory committee
for U.S..Savings Bonds.
The committee will assist the Treasury in developing
additional voluntary support of the Savings Bonds program
by looal radio and television stations throughout the
country.
Chauncey, who is president and general manager of
Stations KOOL and KOOL-TV in Phoenix and KOLD and
KOLD-TV in Tucson, is active in national affairs of
the broadcasting industry.

His committee will include

representatives of both small and large stations in all
sections of the country.
The radio and television industries have long been
among the most active contributors to the promotion of
the bond program.

Both national networks and local

stations participate on a regular basis through the
cooperation of the National Association of Broadcasters
and the Advertising Council.

oOo

li^ 8

RELEASE A. M. MZWSFAP^RS,
Tuesday9 January 28, 1958.

The Treasury Department announced last evening that the tenders for 11,700,000,000
or thereabouts, of 1-ca/ Treasury bills to be dated January 30 and to nature May 1,
1958, which were offered on January 23, were opened at the Federal Reserve Banks on
January 27.
The details of this issue are as followst
Total applied for - 12,692,158,000
Total accepted
- l,7Qt),9G9,OQO (includes I381*,873,000 entered on a
*
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bidss
High
Low

- 99.ii50 Equivalent rate of discount appro*. 2.176$ per annua
- 99*kk2
B
« n
«
n
2.207$ "
•

Average

- 99-1*1*3

•

2.2021

($k 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
Chicaro
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

#
1*1,032,000
1,8^3,275,000
l*0,2ll*,000
78,li2ii,000
19,935,000
36,728,000
301,206,000
33,361i,000
?3,19l*,000
51,186,000
Mi,388,0OO
178,912,000

t
27,807,000
1,033,793,000
26,81t>,000
63,869,000
17,690,000
32,720,000
225,9!i6,OQu
32,531,000
20,075,000
1*3,938,000
29,883,000
11*5,811,000

*2,692,158,000

H , 700,909,000

TOTAL

A jvJV^ U)°'

' ^'73

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, January 28, 1958.

The Treasury Department announced last evening that the tenders for $1,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated January 30 and to mature May 1,
1958, which were offered on January 23, were opened at the Federal Reserve Banks on
January 27*
The details of this issue are as follows:
Total applied for - $2,692,158,000
Total accepted
- 1,700,909,000 (includes $381*,873,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids:
High - 99»U50 Equivalent rate of discount approx. 2.116% per annum
Low
- 99*1*1*2
»
«
n
e
n
Average - 99.1*1*3

2.207$

» « M « 2.202$ " "

($k 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*1,032,000
1,81*3,275,000
i*0,211*,000
78,l*2l*,000
19,935,000
36,728,000
301,206,000
33,361*,000
23,19l*,000
51,1*86,000
1*1*,388,000
178,912,000

$
27,807,000
1,033,793,000
26,81*3,000
63,869,000
17,690,000
32,720,000
225,91*6,000
32,53l*,000
20,075,000
1*3,938,000
29,883,000
11*5,811,000

$2,692,158,000

$1,700,909,000

TOTAL

ta.l
-i. y

Mr. Rose isas appointed Chief Counsel of the Internal Revenue Senri.ce
February 13, 1957. President Eisenhoiser nominated him on Jan.16, 1958,
to be General C unsel of the Treasury Department, and ks the nomination
was confirmed by the Senate on January 27, 1958

rj^mm,*^
^JUyf^

fotkym****r

^y^^—^

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.

]Q9
A v £_

NELSON P. ROSE
General Counsel of the Treasury Department

Mr. Rose was born October 26, 1909, in Columbus, Ohio. He is the son
of the late Henry Nelson Rose of Lancaster, Ohio, and Grace Chapman Rose,
now of Columbus.

, ?,r, n J~

83
~ (J

'<4

Secretary Anderson today administered the oath of office to
Nelson P. Rose of Cleveland, Ohio, as General Gounsel of the Treasury
Dep artment.
Friends and Treasury associate* of Mr. Rose v/ere present at the
^•l_ii

—

ceremony a^the Treasury.
Mr. Rose succeeds Fred C. Scribner, Jr., as General Counsel. Mr.
Scribner is now Under Secretary of the Treasury.
As the Qhief legal officer/of the Treasury, the General Counsel

supervision over and coordinates the work of the Legal Division. He
is directly responsible to the Secretary of the Treasury, and performs «
such additional duties as are assigned ** by the Secretary or required
by law.
For the past year Mr. ^ose has been Chief Counsel

of the Internai

Revenue Service. He was nominated by President Eisenhower for his new
post on January 16, 1958 and confirmed by the Senate on January 27, 1958
Prior to entering the Federal service he was a partner in the
Clevel^d law firm of Jones, Day, Cockley & Reavis,

RELEASE 12:15 P.M..
Tuesday, January 28, 1958.

A-153

Secretary Anderson today administered the oath of
office to Nelson p. Rose of Cleveland, Ohio, as
General Counsel of the Treasury Department.
Friends and Treasury associates of Mr. Rose were
present at the ceremony at the Treasury.
Mr. Rose succeeds Fred C. Scribner, Jr«, as
General Counsel. Mr. Scribner is now Under Secretary
of the Treasury,
As the chief legal officer of the Treasury, the
General Counsel has supervision over and coordinates
the work of the Legal Division. He is directly
responsible to the Secretary of the Treasury, and
performs such additional duties as are assigned by
the Secretary or required by law.
For the past year Mr. Rose has been Chief Counsel
of the Internal Revenue Service. He was nominated by
President Eisenhower for his new post on January 16,
1958 and confirmed by the Senate on January 27, 1958.
Prior to entering the Federal service he was a
partner in the Cleveland law firm of Jones, Day,
Cockley & Reavis.

NELSON P# ROSE
General Counsel of the Treasury Department

184

Mr. Rose was born October 26, 1909, in Columbus, Ohio. He
Is the son of the late Henry Nelson Rose of Lancaster, Ohio, and
Grace Chapman Rose, now of Columbus.
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 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.
Mr. Rose was appointed Chief Counsel of the Internal Revenue
Service February 13, 1957. President Eisenhower nominated him
on January 16, 1958, to be General Counsel of the Treasury
Department, and the nomination was confirmed by the Senate on
January 27, 1958.
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.
January 28, 1958
oOo

- 3 • 1 QQ
-A.

\y ^

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
m

be interest.

Under Sections h$k (b) and 1221 (5) of the Internal Revenue Code of

1951* the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*15, 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 Q 7

2 percent of the face amount of Treasury bills applied for, unless the tenders
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the Federal Re-

serve Banks and Branches, following which public announcement will be made by t
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any
all tenders, in whole or in part, and his action in any such respect shall be

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

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

price (in three decimals) of accepted competitive bids. Settlement for accepted

tenders in accordance with the bids must be made or completed at the Federal Re
serve Bank on February 6, 1958 , in cash or other immediately available funds

££<

or in a like face amount of Treasury bills maturing February 6, 1958 Cash
and exchange tenders will receive equal treatment. Cash adjustments will be mad

for differences between the par value of maturing bills accepted in exchange an
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

sale or other disposition of the bills, does not have any exemption, as such, a
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 195U. The bills

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

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

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

L
TREASURY DEPARTMENT
Washington

A. M.
tSSL RELEASE/ mmSM. NEWSPAPERS,
Thursday, January 50, 1958
.

mW^
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 6, 1958 , in the amount of
I1,700.448.000

» 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 6, 1958 , and will mature May 8, 1958 , when the face

x^5

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,^b»oco'clock p.m., Eastern Standard time, Monday, February 5, 1958 .
x^c
'
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders

the price offered must be expressed on the basis of 100, with not more than thre
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders

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

RELEASE A.M. NEWSPAPERS,
Thursday, January 30, 1958.

.A-154

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 6, 1958,
in the amount of $1,700,448,000, 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 6, 1958,
and will mature May 8,1958,
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 3, 1958.
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 bi!3s 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 6, 1958, in cash or other immediately available funds
or In a like face amount of Treasury bills maturing February 6, 1958.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter Imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
Issued hereunder need include in his Income tax return only the
difference between the price paid for such bills, whether on
original Issue or on subsequent purchase, and the amount actuallyreceived either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O0

TREASURY DEPARTMENT
-V"

'••••« •

"...i, I " • l>"Li,u,niwnjilJI,»Ji),i,i»n.»uuiinii..

I .m».ii«iimiM»iiiii»uiw.—•IMM.IJ.I.-.

WASHINGTON. D.C
IMMEDIATE RELEASE,
Wednesday, January 29, 1958.
A-155

The Treasury Department today announced that on Monday, February 5, it will
offer three new Treasury securities, all to be dated February 14, 1958, as follows:
2-1/2$ Treasury Certificates of Indebtedness of Series A-1959, maturing
February 14, 1959
3$ Treasury Bonds of 1964, maturing February 15, 1964
o-l/2% Treasury Bonds of 1990, maturing February 15, 1990

of anv^f tL^^™* iss^es wil1 be open only, on an exchange basis to holders
oi any ol the following maturing securities:
Title of Issue
Maturity
Amount Outstanding
Date
(Millions of Dollars)
3-3/8$ Treasury Certificates, Series A-1958 Feb. 14, 195810,851
2-1/2$ Treasury Bonds of 1956-58
Mar. 15, 1958
1,449
1-1/2$ Treasury Notes, Series EA-1958
Apr. 1, 1958
383
Treasury Bills (Special Issue)
Apr. 15, 1958
1,751
3-1/2$ Treasury Certificates, Series B-1958 Apr. 15, 1958
2,551
TOTAL .
. . . 16,785
F e b ™ i f I°O?Q
ill? Z H k
It
6
tiveiy mature!

f t l f l c a t e s * 1 U b * P^able on August 14, 1958, and
I ?
" b o n d s will be payable on August 15,
the
"
** ' 5 "* ^ ^ ±5 ** ""* ^
^
* re^ec"

T T
Inte

t 0n the t w o ne

Exchange of the maturing securities for any of the three new issues will be
made par for par with the following interest adjustments:
5-5/8$ Certificates of Indebtedness of Series A-1958: Coupons dated February 14, 1958, to be detached and cashed when due
2-1/2$ Treasury Bonds of 1956-58: To be surrendered'with coupons dated
March 15, 1958, attached. Accrued interest from September 15 1957
to February 14, 1958, will be paid the subscriber following acceptance
of the bonds. In the case of registered bonds accrued interest will
be paid m accordance with the assignments.
1 1/ : T
~ ! l r ! S U 7 N ° t e S ° f S e r i 6 S E A - 1 9 5 8 ? T o b * surrendered with couoons
dated April 1, 1958, attached. Interest from October 1, 1957 to
^ r o 1 l' 1 958 4 W i l 1 b e c r e d i t e d > accrued interest from February 14
1958, to April 1, 1958, at the appropriate rate on the new securities for which the notes are exchanged will be charged, and the difference will be paid the subscriber following acceptance of the notes
Treasury bills maturing April 15. 1958: They will be accepted at face
value. Accrued interest from February 14, 1958, to April 15, 1958
at the rate borne by the securities for which the bills are exchanged
must be paid by the subscriber following acceptance of the bills

^-» > ^ ^

3-1/2$ Certificates of Indebtedness of Series B-1958: Coupons dated
April 15, 195b", must be attached to certificates when surrendered.
Interest from October 15, 1957, to February lU, 1958, will be paid
if exchanged for new 3-1/2$ bonds. If exchanged for the 2-1/2$
certificates or the 3% bonds interest from October 15, 1957, to
April 15, 1958, will be credited. Interest from February 14, 1958,
to April 15, 1958, at the appropriate rate borne by the new securities subscribed for will be charged, and the difference will be paid
the subscriber following acceptance of the certificates.
The subscription books will be open only on February 3 through February $
for this exchange offering. Any subscription for any of the three issues addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United
States and placed in the mail before midnight Wednesday, February 5, will be
considered as timely.

TABLE OF INTEREST ADJUSTMENTS PER $1,000
IN CONNECTION WITH EXCHANGE OF VARIOUS MATURING
SECURITIES FOR NEW 2-1/2$ CERTIFICATES, 3$ BONDS AND 3-1/2$ BONDS
Net Amt. Net Amt.
ecurities Surrendered

Int. Credited
to Subscriber

-3/8$ Certs., Series A-l
958

-1/2$ Bonds of 1956-58

16.78
10.50

Int. Charged
to Subscriber
%

—
—

to be Paid
Subscriber

to be Collected
From Subscriber

% 16.78

io.5o

—

-1/2$ Notes of Series EA
-1958
(If exchanged for 2j»s)

7.50

3.18

4.32

—.«

(If exchanged for 3's)

7.50

3.81

3.69

—.

(If exchanged for 3j's)

7.50

4.45

3.05

—

(If exchanged for 2jfs)

...

4.14

—«.

4.14

(If exchanged for 3's)

—

4.97

—

4.97

(If exchanged for 3i's)

—

5.80

—

5.80

reasury Bills

•1/2$ Certs., Series B-l!
958
(If exchanged for 2|,s)

17.50

4.14

13.36

...

(If exchanged for 3's)

17.50

4.97

12.53

—

(If exchanged for 3j's)

11.73

...

11.73

...

•

iQ7

3-1/2$ Certificates of Indebtedness of Series B-1958: Coupons~dated
April 15, I9i>b, must be attached to certificates when surrendered.
Interest from October 15, 1957, to February 14, 1958, will be paid
if exchanged for new 3-1/2$ bonds. If exchanged for the 2-1/2$
certificates or the 3$ bonds interest from October 15, 1957, to
April 15, 1958, will be credited. Interest from February 14, 1958,
to April 15, 1958, at the appropriate rate borne by the new securities subscribed for will be charged, and the difference will be paid
the subscriber following acceptance of the certificates.
The subscription books will be open only on February 3 through February $
for this exchange offering. Any subscription for any of the three issues addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United
States and placed in the mail before midnight Wednesday, February 5, will be
considered as timely.

TABLE OF INTEREST ADJUSTMENTS PER $1,000
IN CONNECTION WITH EXCHANGE OF VARIOUS MATURING
SECURITIES FOR NEW 2-1/2$ CERTIFICATES, 3$ BONDS AND 3-1/2$ BONDS
Net Amt. Net Amt.
Securities Surrendered

Int. Credited
to Subscriber

3-3/8$ Certs., Series A-1958 $$ 16.78
2-1/2$ Bonds of 1956-58

10.50

Int. Charged
to Subscriber

to be Paid
Subscriber

to be Collected
From Subscriber

$ 16.78

...
—

10.50

—

L-l/2$ Notes of Series EA-1958
(If exchanged for 2j»s)

7.50

3.18

4.32

...

(If exchanged for 3's)

7.50

3.81

3.69

—

(If exchanged for 3j,s)

7.50

4.45

3.05

..«•

(If exchanged for 2j's)

....

4.14

—«.

4.14

(If exchanged for 3's)

—

4.97

—

4.97

(If exchanged for 3jfs)

—

5.80

—

5.80

Treasury Bills

3-1/2$ Certs., Series B-1958
(If exchanged for 2i's)

17.50

4.14

13.36

—

(If exchanged for 3fs)

17.50

4.97

12.53

—

11.73

...

11.73

—

(If exchanged for 3ifs)

is X

RELEASE A. M. HMSPAFEBS,
Tuesday, February 4 t 1958.

1 mJ

The Treasury BsparfcBieiit announced last evening that the tenders for #1,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated February 6 and to mature May 8, X

which were offered on January 30, were opened at the Federal Reserve Banks on February
The details of this issue are as followst
Total applied for - $2,356,367,000
Total accepted
- 1,700,017,000

(includes $321,144,000 entered on a
noncompetitive basis and accepted in
lull at the average price shown below)

Range of aeeepted competitive bidst
Hi$i - 99.634 Equivalent rate of discount approx. 1.448$ per annua
Low
- 99.573
*
"
*
»
*
1.689$

Average - 99.600 » » « • * x.$&$% » »

(j&u*t*s a^^y

y/tj&r

(96 percent of the amount bid for at the low price was accepted)
Federal Reserve Total Total
District
^omton $ 34,375,000 | 24,375,000
»«* * w *
Philadelphia
Cleveland
lichMond
Atlanta
Chisago
St. Louis
Minneapolis
Kansas City
5* 11 **
,
San Francisco
TOTAL 12,356,367,000 11,700,017,000

Applied for
1,605,306,000
36,466,000
75,296,000
15,722,000
41,848,000
277,962,000
37,401,000
19,590,000
1*2,689,000
47,472,000
122,240,000

Accepted
1,001,306,000
36,066.000
74,796,000
15,722,000
41,848,000
236,962,000
37,401,000
19,440,000
42,689,000
47,172,000
122,240,000

-AS*'XL\
n

TREASURY DEPARTMENT

iQQ
jm y

WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, February 4, 1958.

A-156

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 6 and to mature May 8,

which were offered on January 30, were opened at the Federal Reserve Banks on Februa
The details of this issue are as follows:
Total applied for - $2,356,367,000
Total accepted
- 1,700,017,000

(includes $321,144,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High
Low
Average

99.634 Equivalent rate of discount approx. 1.448$ per annum
n
99.573
"
«
w
»
n
1.689$ "
- 99.600

1.583$ *»

(96 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

$
34,375,000
1,605,306,000
36,466,000
75,296,000
15,722,000
41,848,000
277,962,000
37,401,000
19,590,000
42,689,000
47,472,000
122,240,000

$
24,375,000
1,001,306,000
36,066,000
74,796,000
15,722,000
41,848,000
236,962,000
37,401,000
19,440,000
42,689,000
47,172,000
122,240,000

$2,356,367,000

$1,700,017,000

TOTAL

AJ33&

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

at which Treasury bills are originally sold by the United States is considered t

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 o
and such bills are excluded fror consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereund

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 nay be obtained from any Federal Reserve Bank or Branch.

- 2 -

Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be

final. Subject to these reservations, noncompetitive tenders for $200,000 or les

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

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 15, 1958 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 15, 1958 Cash

and exchange tenders will receive equal treatment. Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

sale or other disposition of the bills, does not have any exemption, as such, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 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

EXK3M3K1
....

.__

TREASURY DEPARTMENT
Washington
<
A. M.
S8K RELEASE/ 8®dbB& NEWSPAPERS,
Thursday, February 6, 1958
.

IL ^
/ \

'"~*\

/ *Q
/ -

gg—
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
$1,700,087,000

February 15, 1958

, 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 February 15, 1958 , and will mature Hay 15, 1958
, when the face

re 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,/tea o^lock p.m., Eastern Standard time, Monday, February 10, 1958 .

TB—
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, February 6, 1958.
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 13, 1958,
in the amount of $1,700,087,000, 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 13, 1958,
and will mature May 15, 1958,
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 10, 1958.
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 13, 1958, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 13, 1958.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The Income derived from Treasury bills, whether Interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject
to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
issued hereunder need Include In his income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
loss.
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their Issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
0O0

TREASURY DEPARTMENT
Washington

Statement by Treasury Secretary
Robert B. Anderson before the
Joint Economic Committee, 10:00 A.M.,
E.S.T., Friday, February 7, 1958.
I am glad to have this opportunity to appear before the
Joint Economic Committee. The Economic Report of the
President and the deliberations and reports of this Committee
and its subcommittees, together with the work of the Council
of Economic Advisers, are of great value in developing and
maintaining coordinated economic policies which will
facilitate, to the greatest extent possible, strong and
balanced economic growth in our dynamic economy.
Perhaps the one characteristic of our American economy
which has persisted since the beginning of our history has
been growth by means of constant change. Fluctuations and
dislocations are typical of a dynamic, competitive system in
which the energies of free individuals have full scope. We
must expect that the momentum of our economy will not be the
same in all sectors of activity at the same time. Throughout
our economic history there has been constant evolution of
both our needs and wants and our means of satisfying them.
We.have firm grounds for our belief that our Nation possesses
the basic ingredients of an economic system which will insure
a sound maintainable rate of economic growth.

A-158

1 QQ
mL \J ^

- 2 At present we are passing through a period which is
presenting certain difficulties and problems.
our continued and careful evaluation.

This requires

But we must recognize

that the need for appraisal — for considered judgment and
action —

is one of the responsibilities of membership in

a free society.

One of our great strengths is the

dedication of our government and our people to the task of
maintaining the basic health of our economy.

Neither

inflation nor deflation will be allowed to run a ruinous
course.
Our judgments last December in arriving at our estimated
budgetary receipts for the period 18 months in advance were
admittedly difficult.

They took into consideration both the

current problems of our economy and a confidence in the
strength of the underlying forces of our system contributing
to growth.

A further consideration was the fact that each

of our governmental departments and our monetary agencies
would continue to conduct their operations so as to contribute
renewed vitality to our economy.
Some of the specific factors contributing to our
judgments will be discussed later on.
We have not endeavored to judge the movements of our
economic system with exact nicety nor to estimate shifts in
the economy at precise moments. Rather, our judgments are

200
- 3 predicated upon the belief that the restrictive phases of
economic fluctuations would not continue for a protracted
period.
It seems most important to us that our economic outlook
in terms of future growth should be evaluated from the standpoint of long range factors as well as those of a shorter term.
Let us first review some of the forces underlying our
belief in long-term progress.
We have a growing, vigorous population.
competitive, productive economy.

We have a highly

Rapid technological advances

have created new products and processes. Long range and
careful planning is becoming more predominant.

All of these

forces are generating new demands and new needs. In order to
satisfy these and like requirements, we must look to our
natural resources, our expanded Industrial capacity, our
growing skills, our managerial capacity, and other like
contributors to our productive machinery.
When we view our long-term situation in perspective,
therefore, it is clear that we have on the one side the
expanding needs and wants of our growing population and on
the other side the capacity and skill for meeting these wants
and needs with an expanding volume of output.
Moreover, we have the two further essentials of
continued high level activity in a free enterprise economy —
a relatively stable currency and an efficient financial system.

201
- 4Our financial system is demonstrating an ability to
provide short-term and long-term financing necessary for
increasing activity and growth,

we must continue to exert

every effort to achieve stability in the purchasing power
of our dollar.
In order to see just where we stand, it is worthwhile
examining the elements of our current strength a little more
closely.
First of all, what are the expanding needs of the American
economy?
To answer that question, we have only to look around us.
Our population is growing at the rate of approximately three
million a year —

the equivalent of adding a state the size

of Kentucky to our consumer population every 12 months. We
have constantly increasing demands for new products and
materials from American business, as the result of scientific
and technological advances taking place In almost every area
of activity throughout the economy.

We have a constant desire

on the part of all of our people to improve their standards of
living and to expand the opportunities available to their
children.
Turning now to our capacity for meeting these needs —
America has demonstrated that we have in this country an
industrial mechanism capable of meeting any reasonable demands
that may be made upon it, both military and civilian. The
urgencies of World War II unlocked many new productive
powers in the American Industrial machine.

Nevertheless, in

202
- 5 the period since the end of World War II, American industry
has made an unprecedented investment in plant and equipment.
From 1946 through 1957 such investment totaled over
$300 billion —

a total outlay equal to United States military

expenditures during World War II, 1941-45. And this
investment is continuing.

Business plans for fixed investment

in the calendar year 1958 exceed actual spending in any
previous year except 1956 and 1957.
Along with our expanding plant and equipment, our labor
force is growing by three-quarters of a million workers a
year —

a part of our growth in population. Yet we are

constantly making more efficient use of the contribution of
American workers to output.

Output per man hour in the

private nonfarm sector of the economy has been increasing at
an average rate of more than 3 percent a year for the postwar
period, reflecting again the tremendous expansion of plant
and equipment and improved techniques and working conditions.
Moreover, agricultural productivity has been increasing even
more rapidly than that of industry.
A further —

and very important — factor in the long-

term situation is the willingness of our people and pur
Government to use the mechanisms at our command so as to
employ our economic strength in a way which will help assure
sustainable growth.

203
- 6In the short-term area, a number of favorable factors can
be discerned.
occurred.

First of all, part of the readjustment has

Reduction of inventory in some lines and certain

adjustments in output and prices have already taken place.
Possibly in reflection of this fact, both sensitive
industrial material prices and the prices reflected in the
all-commodity index of the Bureau of Labor Statistics have
recently showed considerable stability.
The level of personal income has held up well.

There has

been prompt and responsive readjustment in certain stock and
bond yield and interest rate relationships, and the stock
market has shown some elements of strength during the past
month.
Residential housing construction has turned upward slightly,
and mortgage money is becoming more readily available.
A sustaining influence can be expected from the stepped-up
pace of certain federal programs such as highway building, and
from a number of state and local projects having to do with
community facilities.

Increased defense spending and contract

placement will also have a stimulating effect on the economy.
Perhaps one of the most important considerations, however
either long-term or short-term —

is the fact that the

confidence of the American people in the basic strength of
our economy has remained strong.
confidence is increasing.

There is evidence that this

The American people are recognizing

204
- 7 that the period of adjustment we are now going through is in
part the consequence of our rapid expansion during the past
several years. Our power for growth remains unimpaired, and
justifies a belief that we have the elements needed for a
continuing healthy economy, capable of expanding and adapting
itself to any new demands which it may be called upon to
fulfill.
You are. familiar with the contents of the Budget Message
and its recommendations for a continuation of existing tax
rates on corporation income and excises on liquor, tobacco and
automobiles for another year.
The economic assumptions underlying our revenue estimates
in the 1959 budget, which you requested in your letter of
January 20th, are as follows:
Personal income was assumed to be $343 billion
in the calendar year 1957 and $352 billion in the
calendar year 1958.
Corporate profits were assumed to be $42 billion
in each of the two years.
We do not assume any change in prices from the
present.
I should now like to discuss for a moment some of the
problems involved in making the basic assumptions which we must
make in estimating the Government's income from taxes.

- 8-

205

The problem of projecting our revenue receipts, which is
a part of the budgetary process, in always difficult.

In the

months of November and December it becomes necessary, as a
part of this operation, to arrive at certain determinations with
reference to income tax receipts for a period 18 months in
advance.
This task would be much simpler if we could be content
with a range of estimates. However, the budget-making
process does not permit such a procedure. We are required to
use a degree of preciseness which involves a number of specific
judgments made with the help of the best evidence and the best
experts available.
The difficulties inherent in making precise determinations
of future tax income are clearly evident in the historical
records.

These show that various relationships between tax

receipts and major economic indicators which might be expected
to be fairly constant over the years do not in fact remain
constant.

They change considerably from one year to the next.

The individual income tax and the corporate tax provide the
bulk of our revenues; and personal income and corporate
profits are the two most important bases for estimating
receipts from these two tax sources.

Corporate profits,

however, are not uniformly related to any single indicator or
combination of economic indicators. There is even a lack of
correspondence as to the direction of change between
corporate profits and the gross national product.

206
- 9In 1952, for example, there was a large decrease in corporate
profits in spite of a substantial increase in the gross
national product.
I might add in'passing that the best current data on
corporate profits are themselves estimates which are subject
to substantial revision, after taxes are collected and tax
returns tabulated in Statistics of Income.

Again referring

to 1952, estimated corporate profits were reported at the end
of the year as $40.8 billion.

This figure was finally revised

to $35.9 billion,long after the end of the year.
Our estimate of $42 billion for corporate profits in both
1957 and 1958 is based on our own best appraisal and on advice
which we have sought from staff experts in the Department of
Commerce, the Council of Economic Advisers, and the Federal
Reserve Board.

The estimate Is, of course, subject to the

same hazards as have been manifest in the past but it
represents our best judgment.
With respect to the individual income tax, we have
estimated increases in receipts from this source, although
these expected increases are substantially less than those
which occurred in recent years. Our estimate took into
account current economic conditions, as well as our judgment
that growth would be resumed during the year 1958 and
continued on into 1959. Specifically, the increase estimated
for the individual income tax estimated for fiscal 1958 over
fiscal 1957 Is $1.6 billion; and the increase for 1959 over
1958 is $1.3 billion.

Individual income tax receipts

- 10 increased $3.4 billion in each of the fiscal years 1956
and 1957. Thus the total increase for the two years 1958 and
1959 of $2.9 billion in individual income taxes is
substantially less than the increase in this category which
took place in either one of the years 1956 and 1957.
The personal income level for the calendar year 1958
underlying the budget estimate assumes a rise of $9 billion
over the personal income of the preceding calendar year.
This is about one-half of the annual rate of increase of
preceding years.
As in the case of corporate tax estimates and the
economic indicators on which they are based, the historical
record shows that there have been substantial variations in
the relationship between individual income tax receipts and
their major determinant, personal income.
These variations reflect changes in the distribution of
personal income at different income levels, including varying
proportions in the taxable and nontaxable categories, and in
the realization of capital gains which affect tax receipts
but are not included in the statistical concept of personal
income.

They indicate the difficulty of attempting to

project tax receipts with complete accuracy, even if the
underlying figure for personal income could be estimated
accurately.

- 11 In the Committee's invitation to appear before you, you
asked that I give attention to four questions. With your
permission, I should like to address myself to three of them
and ask Under Secretary Baird to address himself to the final
/ question on our outlook for debt management for the coming
year.
With reference to your question as to the proper division
of labor between tax policy and monetary policy as instruments
of economic stabilization during the current year, I should
like to suggest the following:
The power of taxation should always first be critically
examined as an instrument to provide revenue for the government
upon the most equitable basis possible.

Tax changes should be

utilized for purposes of economic stimulation only when economic
conditions are sufficiently adverse to warrant it.
I have heretofore stated that I can conceive of
situations where tax reductions might appropriately be brought
into play in order to help the resumption of economic growth.
It is our judgment that the present condition of the economy
does not warrant such action now.

We continue to believe

that growth in our economic system will reassert itself.
We continue to be concerned that we should avoid if possible
adding to our already burdensome debt during periods of high
production.

However, we must continue to examine developments

as they progress from month to month with a willingness

to use this or other methods of stimulation if conditions
should require them.
Monetary and credit policy can be used more appropriately
during periods of economic change such as we are now
experiencing.

The recent sharp reduction in interest rates,

plus an increase in availability of credit, provides easier
financing of business and local government capital projects
and projects in other areas of growth, such as residential
housing.
With reference to your second question concerning
recommendations for general or structural revisions in tax
policy at this time, I should like to advise that we are
following closely the material which is being developed In
the hearings of the House Committee on Ways and Means and
our staff is currently reviewing the hearings with the
staffs of the House and Joint Committees. These cooperative
efforts will continue.
We have recently reaffirmed the recommendation of the
Budget Message for a continuation of the existing corporation
income tax rates and the excises on liquor, tobacco and
automobiles for another year. There is about $3 billion in
revenue involved.

We have also recommended that H."R. 8381

to make certain technical revisions and eliminate some
unintended benefits and hardships be enacted with some
modifications. This bill has now passed the House and Is
before the Senate Finance Committee.

2iu
- 13 We have also suggested to the House Committee on ways
and Means that the question of tax simplification is in our
judgment exceedingly important.

I have asked the staffs of

the Treasury and the Internal Revenue Service to work closely
with the staffs of the Joint Committee on Internal Revenue
Taxation and the Committee on Ways and Means to determine
the most effective way of dealing with this problem.

seems to me to go to the very heart of our voluntary tax
system.

I hope that we will be able to develop a mechanism

for giving effective consideration to this important matter
in the near future„
On the third question as to the relative importance of
encouragement of investment and encouragement of consumption,
let me be frank to say that our system of competitive
enterprise should be such as to encourage increased investment
and to provide the generation through savings of adequate
capital to finance both replacement and expansion.

At the

same time, the utilization of the products of our enterprise
is dependent upon effective demand which, of course, is the
basis for consumption.

It would seem, therefore, that any

consideration of tax policy should give weight to both the
development of effective capital and the stimulation of
effective demand.

Here again, in order to maintain our

voluntary tax system we must be concerned not only with the
objectives of economic stimulation, but at the same time so
act as to insure fairness to all taxpayers and the

development of a system of tax forms and calculations which
can be fully understood and prepared without undue
complications. ,
I shall now ask Mr. Julian Baird, the Under Secretary
for Monetary Affairs, to speak on the fourth and final
question concerning our outlook for debt management for the
coming year.

0O0

DEPARTMENT
Washington

TREASURX

Statement by Under Secretary of the Treasury
Julian B. Baird, following testimony by Secretary
Anderson, before the Joint Economic Committee,
10:00 A.M., E.S.T., Friday, February 7, 1958.

I am glad to have the opportunity to discuss with you today what we
in the Treasury consider to be our most important debt management problems during 1958.
Debt management, of course, does not take place in a vacuum. If it
is to make its maximum contribution to sound financial management it must
work effectively with the budget and tax policies of the Government and
the monetary policies of an independent Federal Reserve System. Even
though the Treasury^ debt operations run well over $100 billion a year
in terms of over-all issuances or retirements, good debt management rarely
makes headlines. The Treasury is making every effort to handle this very
technical and complicated phase of fiscal policy in a way that will contribute to sound and sustainable economic growth and stability.
The environment in which debt management operates consists of many
factors, the first of which is the budget outlook. If other conditions
are favorable, the debt tends to be more easily managed at times when the
Government is taking in more than it is spending. As a result of the
budget surpluses during the past two years, the public debt has been reduced from $281 billion in December 1955, to $275 billion in December 1957.
As you know, however, the present budget outlook does not allow for
further debt reduction in the year ahead, other than the usual seasonal
down-swing under the impact of heavy tax collections this spring, which

- 2 will be followed by a seasonal increase in the debt again next fall.

Even

with a balanced budget, the Treasury has substantial amounts of cash financing to do during the July-December period each year in anticipation of
heavy tax payments in the January-June period.

The seasonal swings in

Treasury receipts are being moderated somewhat from year to year as a
result of corporations paying their taxes more currently as provided for
in the Revenue Code of 1954, but substantial seasonal movements still occur.
Chart I

THE PUBLIC DEBT

Office of the Secretary of the Treasury

BH274-A-2

As Chart 1 indicates, there have been only two periods since the end
of World War II in which sizable debt reduction out of budget surplus has
been realized — a reduction of $8 billion in 1947, 1948, and early 19h9,

r\ -.

- 3and a reduction of $6 billion during the last two years.

We folly expect,

of course, that further debt reduction will be possible as we move beyond
the period of time covered by the present budget, always keeping in mind
that important as it is, the goal of debt reduction should not interfere
with whatever steps are necessary to assure the security of our country.
One of the Treasury1s major responsibilities in the field of debt
management is to work toward a better structure of the debt within the
over-all total whenever conditions permit.

Chart 2 shows the structure

of the debt as of December 31, 1957.
Chart 2

STRUCTURE OF THE PUBLIC DEBT, DEC. 31,1957
Total

Marketable

Nonmarketable

$Bil

Time to Maturity:

Savings BondsSZ

($l64'/2 Billion)

200
'x46>

*>^lnvestment
Bonds, etc.

\ Special Issues

to Trust Funds

275

100

Within I Year
0
Portiolfy tax-exempt bonds to earliest call date.
Office of trw SecrHar) n< the Irnsufy

Most of the Treasury's effect on the structure of the public debt is
achieved through its financing decisions affecting the marketable debt,
which, on December 31, 1957, accounted for $164-1/2 billion of the total
$275 billion debt.

These marketable issues consist of 91-day bills,

1-year certificates of indebtedness, 1- to 5-year notes, and longer-term
bonds —

issues which are freely traded in the Government securities mar-

ket every day.
It would be better to have less of the public debt coming due each
year.

If the $75-1/2 billion of under one-year debt, which is shown as

the bottom bar on Chart 2, can be cut down, there will be a reduction in
both the frequency and volume of Treasury financing.

To the extent that

progress is made toward this objective, the Treasury will be contributing
to a smoother flow of corporate and municipal financing to the capital
markets.

It also will add to the free time which the Federal Reserve will

have to take effective monetary steps without always having to be concerned
with a new Treasury financing which is coming up or financing which is
still in the process of being lodged with the eventual holders of the
securities.

The Treasury would prefer to go to the market less frequently

than it had to in 1957. Last year there were financing operations, other
than the regular roll-over of Treasury bills, in every month except April,
a frequency which reflected in large part the pressure of an increasingly
restrictive debt limit.
The remaining $110-1/2 billion of the public debt is not marketable.'
As shown on the right side of Chart 2, this part of the debt includes
securities issued to the social security and other Government trust funds.
It also includes our savings bonds — which are at the heart of our efforts
to achieve a broader distribution of the public debt.

-5At the present time, approximately 40 million Americans own $4l-l/2
billion of E and H savings bonds. We estimate that something like eight
million people are buying savings bonds regularly through payroll savings
plans where they work or through the thousands of financial institutions
around the country that sell these bonds for us as a public service.
As you know, the rates of interest on Series E and H savings bonds
were raised last winter from 3% to 3-l/W, along with a substantial improvement in earlier yields in case a bondholder redeems his security before it
is due.

This added attractiveness of E and H bonds, together with their

proven appeal of convenience, safety, indestructibility, and a guaranteed
interest rate over a period of years, is already showing up in improved
sales.

Our sales in January 1958 were $510 will ion, up 10% over January

a year ago.
We are now conducting a number of intensive campaigns in leading cities
across the Nation to encourage further sales of savings bonds. We are
reminding Americans again that they are adding not only to their own financial well-being, but also to that of their Nation, when they buy savings
bonds.

Even though E and H bonds may be redeemed on short notice by the

holder, they in fact remain outstanding about seven years on the average.
As a result, they help to achieve a broader distribution of the debt beyond
the short-term area.
The only way, of course, in which the Treasury can reduce the amount
of marketable debt coming due within one year —
retirement —

short of over-all debt

is by replacing some of the maturing short-term debt with

new issues that will come due over a longer period of time.

That is what

we mean by extending the debt, and we try to do that whenever conditions

917

-6 -

are favorable. The simple passage of time brings more and more of the debt
into the one-year area so that a substantial amount of debt extension is
required even if we are to prevent the under one-year debt from growing.
As has been so often said, we operate in something like Alice's Wonderland,
and have to run fast in order to stay in the same place — and even faster
if we want to get some place.
Chart 3

VOLUME OF TREASURY MARKET FINANCING
(Excluding Weekly Roll-Over of Bills)
$Bil.

65.5
szai.3

61.9

5-fO Year Bonds -

^OtherNotes

Long-Term Bonds.

40^ Certs.
andShort
Notes*

57.9J *•Seasonal
'51

'53

- Calendar Years * Notes originally 20 months or less to maturity.
Offir.t: of th»j Secretary of the Treasury

Chart 3 shows what has been done during the last 11 years not only.
in terms of the total amount of Treasury financing that has been required,
other than the roll-over of Treasury bills, but also the amount of debt
extension which has been accomplished.

218
- 7 There was some debt extension back in 1949 and 1950, which helped
reduce the size of the financing job in 1951 and 1952. There was further
debt extension in 1952 and even more in 1953, but the most substantial
debt lengthening that has taken place since the war occurred in the calendar
year 1954. During a year when the Treasury had a $62 billion financing job
to do, $31 billion —

half of the total — was extended into securities

running more than one year to maturity, with almost $22 billion of the
extension in 5- to 10-year bonds. This in turn helped to reduce the volume
of market financing in 1955 and 1956, but the relatively small amount of
debt extension which the Treasury was able to accomplish under the conditions which existed in 1955 and 1956 meant that again in 1957 our problem
was more difficult.

The $65-1/2 billion figure shown on this chart for

1957 Treasury financing is inflated by the fact that $10 billion of the
August maturities (mostly held by Federal Reserve banks) were rolled over
into a December maturity and were, therefore, counted twice during the
year. The fact remains, however, that even if this doubling-up were excluded, the 1957 job was among the largest in history.
Our financing job in 1958 —

including our current financing —

expected to be somewhat smaller than in 1957. Chart 4 indicates the
marketable maturities, issue by issue, which are facing us during this
calendar year. The subscription books on the Treasury refinancing this
year have just closed and we hope to be able to announce shortly the results
on our offering of a 1-year certificate, a 6-year bond, and a 32-year bond,
which was made to the holders of the five issues maturing from February 14
through April 15, as shown on this chart.

219
- 8Chart 4

MARKETABLE MATURITIES IN 1958
Excluding Regular and Tax Anticipation Bills
11.5

$Bil.

Held by:
Public
$28.8 Bil.
Federal Reserve! 21.4
Total
$50.2Bil.

10.9

9.8

Federal
Reserve Banks*

4.4

Public

4.2

Callable

2.4

mm
1.4

1.8

•

'HAW

3.9 |4.2
.9

3 3 / 8 % 2'/2% l'/2% Sp. 3'/2% 2 7 / 8 % 2 % % 2 3 / 4 % 4 %
l'/2%
C.I.
Bd. E.Nt. Bill C.I
Nt.
Bd. Bd.
CI
ENt.
1
Feb. 14 Mar. 15 Apr. I ^ Apr. 15 June 15
' Aug. I
Oct. I
* Including Government Investment Accounts.

[24

1.9

33/4% 2'/2%
C.I. Bd.
Dec. I Dec. 15

Office of the Secretary of the Treasury

B-II64-E-3

Although t h e Treasury decision t o include a large block o f maturities
in t h e current financing helps t o take some o f t h e burden off of our debt
management activities in the spring, w e still face a heavy schedule.
Total maturities o f Treasury certificates, notes and bonds this year
amount t o %$0 billion, o f which $ 2 9 billion is held by t h e public.

addition t o this $50 billion, t h e Treasury h a s an issue of $3 billion o f
tax anticipation bills coming due in March (to be paid off in cash), and
122-1/2 billion of regular 91-day Treasury bills which will be rolled over
four times during t h e course of t h e year.

This total o f $75-1/2 billion

outlines t h e basic dimensions of our job in 1 9 5 8 .

- 9 Chart 5

POTENTIAL GROWTH OF SHORT-TERM DEBT* DEC. 1957-BU
(Assuming N o Debt Extension)
Outstanding
Dec.31,1957

Potential Growth during
Each Calendar Year

Potential
Dec. 31,1961

$Bil.
l23'/2

120

13^1
:i6'/2

'61

'60
80

Notes
and '
Bonds

75/2

HI1

///s////

Debt extension needed
to keep
under I-year
debt at
present
level.

////////
////////
////////
/S/////S

/ss/////

Ci:s
and
Bills

ji6lSpii

////////
////////.
////ss//.
////////
;;75'/
2;
S//////S
////////
/SSS////

/s/ss/s/
//S/SS/S

* Marketable maturities within one year (partially tax-exempt bonds to earliest call date).
Office of the Secretary of the Treasury

Chart 5 spells out our problem of the passage of time adding to the
short-term debt over the next few years, on the basis of the total amount
of marketable debt as it now stands. If we add up all of the debt that
will come into the under one-year category in 1958, 1959, I960, and 1961,
we would find that the amount of under one-year debt four years from now,
instead of being $75-1/2 billion, would be $L23-l/2 billion, if all refinancing in those years was in the one-year area. That would mean about
1$% of the entire marketable debt would be due within one year in 1961,
as compared with ii$% at the present time.

To put it another way, we need a net amount of $1*8 billion of debt
extension in the next four years in order to keep even —

and more than

that if we are to make any progress in cutting down the size of our
short-term debt.
We continue to believe that it is in the long-range best interest
of this country to offer intermediate- and long-term securities over the
next few years whenever conditions are favorable.
operation was based on this principle.

Our recent refunding

It is obvious, however, that a

great deal more remains to be done.
In conclusion, I can assure you that the Treasury will continue to
discharge its responsibilities of debt management with broad national
interest as the first consideration.

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

AS oF^i«Ha.a«.^58

222

Feb 1 0 19 „

Washington, lf°.T.±y..'..±W....
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount."
The 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
$275,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $ 2? , 260 ,226 , 000
Certificates of indebtedness
Treasury notes
BondsTreasury
Savings (current redemp. value)
Depositary.
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
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

34»553 »539»000
20,702,722,000 * 82,516,487,000
82,060,296,650
52,343»528,871
142,880,500
10.194.500.000
29,506,351,000
12,500,999,000
3.462.500.000

ikk,74l,206,021

45.469.850.000
272,727,543,021
... 606,164,359

50,857*921
902,136
733.000.000

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
100,118,750
Matured, interest-ceased
845*750
Grand total outstanding ...
Balance face amount of obligations issuable under above authority

784,760.057
274,118,467,437

100.964.500

Reconcilement with Statement of the Public Debt .^.^1?^^.. 3.I.J...I958
"(Date)
(Daily Statement of the United States Treasury
JjS^l^X^^ ^ l f # _ 1^>58
Outstanding(Da'te)
Total gross public debt
Guaranteed obligations not owned by the Treasury.
^
Total gross public debt and guaranteed obligations.
Deduct - other outstanding public debt obligations not subject to debt limitation

A-160

2 7 4 2 1 9 431.937
780,568,063

)
274,554,825,744
100 ,964.500.
274,655*790.244
4 3 6 .3581307
274,219,431,937

STATUTORY DEBT LIMITATION
AS OF ...iff^^X.31... 1958
^ I sWhH OiU InU ggt VtU fe...99...
* , !....9
* ^ ,.. !.....*,.....,
m

Treasury bills
Certificates of indebtedness
Treasury notes
BondsTreasury

$ 2 7 » 260,226 , 000
34,553,539,000
20,702,722,000 $ 82,516,487,000
82 ,060 ,296 ,650

Savings (current redemp. value)
Depositary.

'..

Investment series
Special Funds-

52,343,528,871
142,880,500
10,194,500.000

Certificates of indebtedness
Treasury notes.
Treasury bonds

29,506,351,000
12,500,999,000
3.462.500.000

Total interest-bearing
Matured, interest-ceased

144,741,206,021

45.469.850.000
272,727.543,021

606,164,359

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

50,857,921
902,136
733.000,000

784.760.057
274,118,467,437

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
Matured, interest-ceased
Grand total outstanding ,„

100,118,750
845.750

100.964.500
274,219,431,937
780,568,063

Balance face amount of obligations issuable under above authority,
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,
,.
,.
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.

Z.^H&£J?...»?.r.!....„:5!5.„
(Date)
$&™l&lffl...l)}'.1, .^-9.5&
(Date)

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

A-160

„

)

274,554,825,744
100.964.500
274,655.790,244
436,358,307
274,219,431.937

c <ft*c*M-v

DRAFT PRESS RELEASE
Under Secretary of the Treasury Julian B. Baird and Ambassador
Fernando Berckemeyer of Peru today signed a one-year exchange agreement in the amount of $17.5 million.

This replaces a similar agree-

ment, in the amount of $12*5 million, which had been periodically
renewed since February 1954.
The Government of Peru has announced a monetary and fiscal program
designed to enable Peru to maintain external trade and payments substantially free from governmental restrictions. Peruvian authorities
have stated that they intend to permit the international value of the
Peruvian currency, the sol, to be determined by basic supply and demand
forces in the exchange market while at the same time conducting exchange
operations so as to minimize fluctuations arising from purely temporary
or erratic forces.
In connection with this stabilization program, the International
Monetary Fund has announced a doubling of its standby arrangement
with Peru from $12.5 million to $25 million.

Peru b** also o^f&S&Tj

lines of credit with U. S. private banks in the amount of $17.5 million.
Under the exchange agreement with the Treasury, which supplements
the arrangements with the International Monetary Fund and the United
States banks, Peruvian authorities may request the United States Stabilization Fund to purchase Peruvian currency should the occasion for such purchase
arise. Any Peruvian currency so acquired by the Treasury would subsequently
be repurchased by Peru for dollars.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Friday, February 7, 1958.

A-l5l

Under Secretary of the Treasury Julian B. Baird and
Ambassador Fernando Berckemeyer of Peru today signed a one-year
exchange agreement in the amount of $17.5 million. Tills replaces
a similar agreement, in the amount of $12e5 million, which had
been periodically renewed since February 1954.
The Government of Peru has announced a monetary and fiscal
program designed to enable Peru to maintain external trade and
payments substantially free from governmental restrictions.
Peruvian authorities have stated that they intend to permit the
international value of the Peruvian currency, the sol, to be
determined by basic supply and demand forces in the exchange market
while at the sane time conducting exchange operations so as to
minimize fluctuations arising from purely temporary or erratic
forces.
In connection with this stabilization program, the
International Monetary Fund has announced a doubling of its
standby arrangement with Peru from $12.5 million to $25 million.
Peru is also opening lines of credit with U. S. private banks in
the amount of $17.5 million.
Under the exchange agreement with the Treasury, which
supplements the arrangements with the International Monetary Fund
and the United States banks, Peruvian authorities may request the
United States Stabilization Fund to purchase Peruvian currency
should the occasion for such purchase arise. Any Peruvian
currency so acquired by the Treasury would subsequently be
repurchased by Peru for dollars.
oOo

°26
O

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in tm mrmmM r^fuMiug hmm bmm m**$mmmA tm*f the Mir immm* To® fallowing table
mmb mi tte

-mmmim>m-,mmumammmi4mmlXmni«n^miurimmm\timmi

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mr* M'Sewts.*** %#
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$10,576

5S2 1,282

aa?

273
lit
$0

£pr« 15 Bills. * *. I/?:
Apr* M Oti******

iriifa

•sB.

,ai§

«»i»

«i*,m

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mmmmmmm aa& their dlotribwtiom lp Federal Reserve
y^k aft«r final wmmem mm roomiymH from the

'27

TREASURY DEPARTMENT
WASHINGTON, D.C.
H#ffiDIATE RELEASE,
Friday, February 7, 1958.

A-162

Preliminary figures show that about $15,322 million of the five issues involved
in the current refunding have been exchanged for the new issues. The following table
shows the amounts outstanding of the maturing issues eligible for exchange, the extent to which they are being exchanged for each of the three new issues offered, and
the unexchanged portion of each of the maturing issues.
(In millions of dollars)
Eligible
Old Issues
for
Exchange

Exchange Subscript:ions for New Issues
2-1/2$ • — ~v;;y
3-1/2$
Total
Ctfs.
Bonds
Bonds

Feb.

$10,851

$7,506

$1,956

$1,114

$10,576

275

1,449

355

595

352

1,282

167

383

187

111

323

Apr. 15 Bills

1,751

679

371

1,141

610

Apr.

2,351

1,063

796

141

2,000

351

$16,785

$9,770

$3,029

$1,723

(j)15,322

$1,463

Mar. 15 Bonds....
Apr.

Unexchanged

Final figures regarding the exchange and their distribution by Federal Reserve
Districts will be announced next week after final reports are received from the
Federal Reserve Banks.

RELEASE A. K. NEWSPAPERS,
Tuesday, February 11, 1958 <

The Treasury Bepartiieat announced last evening that the tenders for 11,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated February 13 and to mature May

1958, which were offered on February 6, were opened at the Federal teserve Banks on
February 10.
The details of this issue are as follows:
Total applied for - $2,1*93*385,000
Total accepted
- 1,?OO,505,000

(includes 1316,780,000 entered on a
noncompetitive basis and accepted in
lull at the average price shown below)

Range of accepted competitive bids?
- oo.6go Equivalent rate of discount approx. 1.503$ p«r anntss
- 99.558
«
»
«
« •
»
x.ih9% »
"

High
Low

- 99.563

•

i#730$ «

(The entire amount bid for at the low price was accepted)
Federal Reserve
District

xoxiax
Applied for

Accepted

Boston
Hew Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City

1
35^50,000'
1,708,283,000 •
1^0,011,000 .
71,632,000l6,flli,Q00
33,27^,000 *
278,618,000 26,057,000
18,528,000 1*8,1*03,000.
52,261,000
163,9514,000

$
25,it50,OO0 *
1,037,053,00027,011,00066,632,000. l6,91b,0G0
33,27l*,000 •
21li,6l8,000 •
26,057,000
18,278,0001*2,603,000
k3,261,000-

#2,1*93,385,000

$1,700,505,000

San Francisco
TOTAL

X m*?

'¥

TOTiSX

H9,35ii.ooo

n
cd°- q

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, February 11, 1958.
A-163
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 13 and to mature May 1
1958, which were offered on February 6, were opened at the Federal Reserve Banks on
February 10,
The details of this issue are as follows:
Total applied for - $2,1*93,385,000
Total accepted
- 1,700,505,000

(includes $316,780,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids?
High
Low

" S * S 2 E < * u i v a l e n t rate of discount approx. 1.503* per annum
- 99*S$o
«
w
«
n
ti
1.7l|Q£ «
n

Average

- 99.563

1.130%

«»

(The entire amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Total
Applied for

Total
Accepted

* 35,1*50,000
1,708,283,000
1*0,011,000
71,632,000
l6,9ll*,000
33,27l*,000
278,618,000
26,057,000
18,528,000
1*8,1*03,000
52,261,000
163,951*,000

$
25,1*50,000
1,037,053,000
27,011,000
66,632,000
I6,9ll*,000
33,27l*,000
211*,6l8,000
26,057,000
18,278,000
1*2,603,000
1*3,261,000
11*9,351*, 000

TOTAL $2,1*93,385,000

$1,700,505,000

or by any local taxing authority.

For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections h$\\ (b) and 1221 (5) of the Internal Revenue Code of
1951* the amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise disposed of,
and such bills are excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
for such bills, whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, Revised, and this notice, prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve Bank or Branch,

- 2 -

2.31
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 20. 1958

, in cash or other immediately available funds

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

February 20, 1958

. Cash

Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the
sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 1951*. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal
or State, but are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the United States,

232
B3foIEtt&Al

asm
TREASURY DEPARTMENT
Washington

A. K.
XSR RELEASE/ MEJHHIK5 NEWSPAPERS,
T h u r s d a y , Ttehpia-ry ^

A
;

/ / Cmm-f
f ^

1 q.qft

The Treasury Department, by this public notice, invites tenders for
$1.800,000,OOP , or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing fp^h^^ry 2QT I95fl , in the amount of
$1,,800,427,000

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

15
competitive bidding as hereinafter provided. The bills of this series will be
dated February 20, 1958 , and will mature May 22. 1958 , when the face

135T

amount will be payable without interest. They will be issued in bearer form only,
and in denominations of |1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour/^S o'clock p.m., Eastern Standard time, Monday. T ^ ^ a r y 17, i s ^ '

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

the price offered must be expressed-on the basis of 100, with not more than thre
decimals, e. g., 99*92$. Fractions may not be used. It is urged that tenders

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

TREASURY DEPARTMENT
,')

, jJumwwjiA.'jw.mwtiijii.iiiini.i.. _ ...•IIII.I.L.^

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, February 13. 1958.

A-164

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 20 1958
in the amount of $1,800,427,000, 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 20, 1958
and will mature May 22, 1958,
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 17, 1958.
Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and In the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bll^s applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve Bank
on February 20, 1958, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing February 20, 1958
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
DillS.
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. 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.

oOo

234
RELEASE A.M. NEWSPAPERS,
Thursday, February 13, 1958.

Remarks by Secretary of the Treasury
Robert B. Anderson at the Union League
Club, Philadelphia, Pennsylvania,
Wednesday, February 12, 1958, 7 P.M.,E.S.T.
It is always a pleasure to meet with old and new friends in
Philadelphia. I am particularly happy to be here this evening
because it gives me an opportunity to discuss informally with
you some of the pressing national problems which are in the minds
of all of us at the present time.
I believe it is always a temptation for each generation to
think of its own problems as more crucial — as casting a longer
shadow over the future — than those of other periods. And just
as our own difficulties seem larger, so our means for resolving
them sometimes seem more elusive than we like to think was the
case in the past.
The present occasion, the birthday of Abraham Lincoln, should
make us wary of falling into this habit of thought. Faced with
events which many thought would result in shattering the Union,
Abraham Lincoln had the supreme faith to look far into the future
and to speak of the American ideal as "the germ which has vegetated
and still is to grow and expand into the universal liberty of
mankind."
Abraham Lincoln's vision was great enough to see America not
as an achievement, but as part of a process — a process whereby
the creative energies of free individuals are constantly working
to give new form to the ideals set down by the Founding Fathers.
At the beginning of our history, George Washington had said that
liberty and self-government are "finally staked on the experiment
entrusted to the hands of the American people". Not only
Abraham Lincoln, but every American before or since has felt
Intuitively that this is so.
What has this conviction meant in the history of our Nation?
There are many ways of characterizing the American system; no
one of them, certainly, can tell the whole story. But I believe
that most of us would agree on one outstanding characteristic of
both our form of Government and the way of life which we have
come to designate as American. That is the placing of ultimate
responsibility for both policy and action squarely on the individual
A-165
citizen.

235
- 2 From the days of the first town meetings right down to the
present, Americans have eagerly grasped the opportunities for
managing their own affairs and working out their own problems
presented by a free society. More than 100 years ago a visitor
to the United States, Alexis de Tocqueville, painted this picture
of the American scene: "No sooner do you set foot on the
American ground," he said, "than you are stunned by a kind of
tumult. A confused clamor is heard on every side, and a thousand
simultaneous voices demand the satisfaction of their social
wants. Everything is in motion. Here the people of one quarter
meet to decide on the building of a church. There a representative
is being elected. A little farther, the delegates of a county
are hastening to consult upon some local improvements. Elsewhere
the laborers of a village quit their plows to deliberate upon a
projected road or public school." All of this, observed
de Tocquerville, has to be seen to be understood; and he added
the shrewd comment that "This ceaseless agitation ... may be the
greatest advantage of democracy."
Individual responsibility — facing problems and getting things
started at the grass roots — has kept Americans working, risking.
adventuring, striving, and above all, changing and adding to the
store of ideas and accomplishments inherited from the past. The
man with a new slant or a new idea — whether developed on the
work bench, in the laboratory, or in a skyscraper office — could
be sure of a hearing.
This was new. This was different. It was, for all the world
to see, American. And, finally, it has met the supreme test —
the American system works.
There are many ways of illustrating the changes made in
American life by mass production and the widening benefits which
have gone with it. A wide variety of figures can be cited —
the fact that family incomes in this country now average over
$5,000 a year; the fact that more than 60# of our homes are
owner-occupied; the startling figures on the ownership of such
things as automobiles, telephones and electric household devices.
This, of course, is only part of the material side of the
picture. Our schools, our recreational facilities, our community
activities, our churches, the rapid spread in recent years of local
centers of music, art and adult education are all the result of
the continuous striving of individual Americans to better the
conditions in which they live.
Because of their firm rooting in the past, the forces making
ror growth and creative expression in every sector of American
life are present today as strong as ever before. We need to

- 3-

236

recognize, however, that the very vitality of our system and
its ever-changing character will make for a different momentum
in our economy at different times. The important thing is to be
wise enough and perceptive enough to view our present situation
in the proper perspective. It is only when we understand the
true sources of our productive power that we can take the right
kind of actions for promoting growth in our particular type of
economy, and avoid wrong or hastily considered steps which may
delay or actually work against progress.
What, then, are the sources of the productive power on the
American economy? As I have already indicated — and as visitors
to our country began to glimpse over a century ago — the major
characteristic of the American economy which makes it stand out
from all others is the diffusion of economic decision and economic
action. In our free society, sparked by the profit motive, risk
and enterprise are encouraged; the urge for greater earnings
motivates the worker to acquire new skills and better education;
the universal drive to expansion in search of rewards permeates
every business, large and small.
This universal drive has been the great generating force
for cumulative growth in the United States since the beginning
of our history. Because of decentralization of economic
initiative, our whole society derives benefit from all the skills
and knowledge and all the ambitions and inventions inHerent in
the whole people. The drive for expansion in the American
economy and in American society springs from tens of millions
of sources — not from some power group on top, as in authoritarian
systems.
Before examining the implications of our current situation,
it is helpful to look a little more closely at the specific
factors making for long-term growth in our economy — now, as in
the past.
It may be noted first of all that while our economic growth
has not proceeded at a uniform rate, data covering long periods
of time show no tendency on the part of the growth rate in this
country to diminish. The achievement of continually higher
output and continually wider sharing of that output over a
period of time is not an imagined Utopia.
In the United States, it is and has been a practical goal for
practical men.
Now as to the long-term growth factors which are strongly
present today.
First among these may be mentioned certain human resources.
Managerial ability, sparking millions of separate businesses,
large and small, shows no evidence of deterioration; in fact,
enterprises are now planned ahead with more care than ever before.

23"?
- 4The American business community is more development-conscious
than it has ever been; it is more alert to new markets and to the
use of new materials, processes, and techniques.
Our labor force remains highly mobile and possesses growing
skills and adaptabilities to the new techniques and processes
of industry.
Our stock of capital goods per worker keeps mounting and is
continually pushing output per worker upward. The rate of output
per man hour has increased by more than 3% per year in recent
years in the nonfarm sector of the economy, and in agriculture
it has increased even more.
Our transportation and communication facilities are increasing
in both extent and efficiency, and our wholesale and retail
distributive industries are greatly widening the network of
services — as is evidenced by the spread of supermarkets and
suburban shopping centers in almost every community.
Moreover, a number of these factors responsible for our
previous growth have stronger potentials now than in the past.
Research has become big business, with more money than ever before
being devoted to enlarging our fund of scientific and technical
knowledge. Private expenditures for research which amounted to
$200 million in 1939 have increased to more than $3 billion a
year at present — quite aside from the research expenditures of
the Federal Government.
Finally, we have a rapidly growing population and a drive for
increasing betterment on the part of every American family. Our
nation is growing at the rate of 3 million persons a year,
equivalent to adding a city the size of Los Angeles to our
consumer population every 12 months. Together, the forces of
change working for individual business promotion and expansion
and individual family betterment make up the most powerful
drive toward continued growth that the world has ever known.
This has been so in the past and with the growing diffusion of
technical skills and of education, it is so in increasing degree
in the present.
These are some of the powerful long-term factors which have
kept our economy on a continuous up-grade, despite occasional
setbacks and pauses. What are their implications for our present
situation?
First of all, I think we should remember that we are dealing
with an economic mechanism highly diffused over a wide geographical
area, involving millions of people and producing an annual gross
national product of about 435 billions of dollars. While all of
the monetary and fiscal instruments available to the Government are

238
- 5 important and are highly influential, they do not within themselves
constitute the entire means by which the whole course of our very
complex economic system can be altered within a short period of
time.
Only a few months ago our primary concern was to halt the
growth of inflationary tendencies. Today, considerable attention
is directed toward economic stimulation.
In point of fact, even the briefest review of our past
development indicates that the American economy simply does not
respond in a predictable ratio to use of a few tools intended
to modify the people's collective judgment and collective actions.
There is a place for governmental action — and an important
place. The day of laissez-faire is over. There is an immense
body of law and custom within which American business and labor
must operate. Governmental authorities must remain flexible
at all times, and must be constantly alert to changing conditions.
We have the willingness and determination to employ the tools of
government as properly and helpfully as we can. But this use
cannot do the whole job.
In our decentralized free enterprise system, the momentum of
the economy comes from the millions of decisions being made all
over the country by businessmen, workers, investors, housewives —
all of us, in every walk of life. It is in this area, most
importantly, that each one of us needs to assume serious
responsibilities.
If our competitive system measures up to the full demands
expected of it, each person in his efforts to achieve profits and
to acquire take-home pay must as well consider his decisions in
achieving thoee goals so as to preserve the economic atmosphere
where profit and take-home pa.-/ »r>e generated. This is the system
of Intelligent competition. The profit raottve and the wages of
the laborer cannot be divorced from the welfare of all of the
people without endangering the values inherent in a free, democratic
society.
This is not altruistic. We must make allowances for sectional
differences, for diversity of interests, for the pulls of
competition, for the full play of enlightened negotiations. But
if we allow any single interest to completely dominate cur
collective decisions and activities, the full potentialities of
a competitive enterprise system cannot be realized.
What are the positive directions, then, which our efforts
should take? As individuals, we must be aware of the need to
raise the level of skills and business management so as to foster
continued investment and jobs and enterprise and sufficient
individual savings to support them. We must recognize the need
for Improved education and a widening of the skills of our

- 6population. We must not deny the needed mobility of labor and
capital. In short, we want to avoid moving toward a system of
controls, and we want to do all in our power to encourage the
creative and expansive forces inherent in the American economy.
Now, how does this bear on our view of the current situation —
on the short-term outlook?
At present, a number of downward indicators are evident in the
economy, and these are properly receiving attention. We are facing
the facts squarely. We are deeply concerned about the increase
in unemployment and the human problems it creates. Each adverse
factor in all sections of our economy and that of other free
nations is being constantly studied and evaluated as best we can.
The first need, as I see it, is to stand these indicators up
against the forces which have stimulated — and are continuing
to stimulate — the impressive long-terra growth rate in the
American economy. This is the best insurance I know of against
ill-advised and inappropriate action.
But when that has been done, we can recognize also certain
factors in the short-term outlook which are favorable — which
indicate that a general upturn may not be too long postponed.
First of all, we can recognize without being unduly optimistic
that part of the readjustment has occurred. Reduction of
inventory in some lines and certain adjustments in output and
prices have already taken place. Possibly in reflection of this
fact, both sensitive industrial material prices and the prices
reflected in the all-commodity index of the Bureau of Labor
Statistics have recently showed considerable stability.
The level of personal income has held up well. There has been
prompt and responsive readjustment in certain stock and bond
yield and interest rate relationships, and the stock market has
shown some elements of strength during the past month.
Residential housing construction has turned upward slightly,
and mortgage money Is becoming more readily available. A sustaining
influence can be expected from the stepped-up pace of certain
federal programs such as the post office modernization program
just announced by the President, highway building, other
construction and modernization programs and urban redevelopment.
In addition, state and local projects having to do with community
facilities are increasing, with the visible supply of new
municipal bond issues estimated to be twice as large as a year
ago. Increased defense spending and contract placement will also
have a stimulating effect on the economy.
Another factor may be noted which may have a stimulating
effect on business spending in the future.

24J

- 7 Between 1946 and 1957 American industry invested over
$300 billion in fixed plant and equipment, a total outlay equal
to United States military expenditures during World War II, 19411945. This is an impressive contribution to our industrial
machine, and it is an important factor in the increased output
per man hour of recent years.
However, it has been little realized that a large and
increasing proportion of this investment was required to replace
capital values currently used up. Recently only about one-tenth
of business expenditures for fixed assets has represented net
expansion. This fact has not been generally understood, partly
because one of the effects of long-term inflation is that
depreciation allowances are less than the actual cost of replacing
the capital consumed. It is a most important factor in the current
outlook, however. The fear that we have over-exnanded and have
much more new capacity than we will need would seem to be
exaggerated.
Finally, every American should ask himself.
Do I believe in this country?
Do I believe in our economic system?
Do I believe that competition, initiative, skill, ambitions,
the plans of a free people will result in growth and expansion?
If you believe these things, you should have confidence —
confidence which is the primary ingredient for insuring that,
despite any readjustments, our economy will go forward.
In a growing, ever-changing economy, constantly responsive
to the decisions of individuals and groups, we cannot expect that
every period will be spangled with superlatives. What we should
remember is that our economy is healthy; that we will grow and
expand; that we will meet new demands of an increasing population.
We believe that the one new thing in hundreds of years —
government by the people and a system of competitive enterprise —
will succeed. I have that confidence. I believe that every
thinking American has the same confidence and faith.in his country.
Abraham Lincoln did not visualize a static America but a
creative, a constantly changing, a constantly improving America.
I have faith that our people, wanting -;o remain free, will make
their decisions so that we perpetuate our freedoms and preserve
the American pattern of progress.

y>j

- 2 -

24i
Unit :
of
: Imports as of
Quantity: Feb. 1. 1958

Commodity
Absolute Quotas;
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter)....Aug. 1, 1957

1,709,000

Pound

Rye, rye flour, and rye meal.... 12 mos. from
July 1, 1957
182,280,000 Pound
Canada
3,720,000 Pound
Other Countries
Butter substitutes, including
butter oil, containing 45^
or more butterfat..
Calendar Year

1,200,000 Pound

Quota Filled

1,199,952

Tung oil Jan. I —31, 1958
Pound
131,556 Pound
41,544 Pound

Argentina
Paraguay
Other Countries

±9*5
18,467,416 Pound
2,437,128 Pound
739,366 Pound

Feb. 1 - Oct. 31,

* Imports as of Feb. 11, 1958.

y«o,voo

Argentina
Paraguay
Other Countries

768,307
Quota Filled
Quota Filled

627,208*
Quota Filled

TREASURY DEPARTMENT
Washington

A n

IMMEDIATE RELEASE,
Thursday. February 13. 1958.

A-166

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 1, 1958, inclusive, as follows:

Unit :
of
: Imports as of
Quantity: Feb. 1. 1958

Gonraodity
Tariff-Rate Quotas:
Cream, fresh or sour •

Calendar Tear

1,500,000

Gallon

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

3,000,000 Gallon 25

Cattle, less than 200 lbs. each.
12 mos. from
April 1, 1957

200,000 Head 16,512

Cattle, 700 lbs. or more each
(other than dairy cows)

120,000 Head 46,10?

Jan.l, 1958 Mar. 30, 1958

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

35,892,221

Pound

Quota Filled (1)

To be Pound 1,305,989
announced
12 mos. from
Sept. 15, 1957

Walnuts Calendar Year

114,000,000 Pound 106,687,408
36,000,000 Pound
45,826,630
5,000,000

Pound

400,067

Almonds, shelled, blanched, Oct. 23, 1957 roasted, or otherwise prepared Sept. 30, 1958
or preserved.•

5,000,000 Pound

4,775,272

Alsike clover seed.. 12 mos. from
July 1, 1957

3,000,000 Pound

189,606

Peanut oil.. 12 mos. from

80,000,000 Pound

Woolen fabrics

July I, ±957
Calendar Year

To be
announced

Pound

3,390,402

(1) Imports for consumption at the quota rate are limited to 8,973,055 lbs. during
the first three months of the calendar year.
(Continued)

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, February 13. 1958.

A-166

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 1, 1958, inclusive, as follows:

Unit :
of
: Imports as of
Quantity: Feb. 1, 1958

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

Cattle, less than 200 lbs. each.
12 mos. from
April 1, 1957

200,000 Head

16,512

Cattle, 700 lbs. or more each
(other than dairy cows)

120,000

46,10?

Jan.l, 1958 Mar. 30, 1958

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

35,«V2,221

Head

Pound

Quota Filled (1)

To be Pound 1,305,989
announced
12 mos. from
Sept. 15, 1957

114,000,000 Pound 106,687,408
36,000,000 Pound
45,826,630

Walnuts Calendar Year

5,000,000 Pound 400,067

Almonds, shelled, blanched, Oct. 23, 1957
roasted, or otherwise prepared Sept. 30, 1958
or preserved.•

5,000,000 Pound 4,775,272

Alsike clover seed.. 12 mos. from
July 1, 1957

3,o00,000 Pound 189,606

Peanut oil • ••••• 12 mos. from
July 1, ±9>7
Woolen fabrics
Calendar Year

80,000,000 Pound
To be Pound 3,390,402
announced

(1) Imports for consumption at the quota rate are limited to 8,973,055 lbs. during
the first tnree months of the calendar year.
(Continued)

- 2 Unit :
of
: Imports as of
Quantity; Feb. lt 1958
Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter)....Aug. 1, 1957
Rye, rye flour, and rye meal....±2 mos. from
July 1, 1957
Canada
Other Countries
Butter substitutes, including
butter oil, containing 45$
or more butterfat
Calendar Year
Tung oil,

Jan. 1 — 3 1 , 1958
Argentina
Paraguay
Other Countries

1,709,000

Pound

182,280,000 Pound
3,720,000 Pound

Quota Filled

1,200,000 Pound

1,199,952

V«0,V00 Pound
131,556 Pound
41,544 Pound

768,307
Quota Filled
Quota Filled

Feb. 1 - Oct. 31,±V>H
18,467,416 Pound
Argentina
2,437,128 Pound
Paraguay
739,366 Pound
Other Countries

* Imports as of Feb. 11, 1958.

Quota Filled

627,208*
Quota Filled

'^bm^m-

COTTON PASTES
^In pounds)
CC

SSSpCA??tiSJ?SS

made from

cotton having-* staple of less than 1-3/16 inches in length, COMBER
A ™ T ^ ^ ? ™ ^
> A K D R 0 V I W G W A S T E > 'WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, that not more than 33-1/3 percent of the quotas shall
oe lined 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
SLIVER WASTE

Country of Origin
United Kingdom .
Canada
France „ . .. . .
British India
Netherlands
Switzerland
Belgium . .
Japan . . .
China . . .
Egypt c . .
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
s Established 2
Imports
17
i Sept. 20, 1957, to : 33-1/3$ of : Sept. 20, 1957
•* F eb > 11. 1958
g- Total Quota s to Feb. 11. 1958
689,134
239,690

1,441,152

689,134

75,807
6,996
22,747
14,796
12,853

6,914

25,443
-7,088

6,915

942,735

1,599,886

696,049

IMMEDIATE RELEASE,
Thursday. February 13* 1958

TREASURY DEPARTMENT
Washington
A-lg7

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

K. '

COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports Sept. 20, 1957. to F e b m m ^ n , i W
— * ^ Country of Origin
Established' Quota
Imports
Country of Origin
Established Quota
Egypt and the AngloHonduras a a .
752
Egyptian Sudan . .
783,816
7,296
Paraguay . . . . . . .
871
*eru . . . . . . . .
247,952
Colombia . . . . . . . .
124
British India . . . .
2,003,483
Iraq « o . . . . . . .
195
China . . . . . . . .
1,370,791
British East Africa . .
2,240
Mexico . . . . . . .
8,883,259
8,883,259
Netherlands E. Indies.
71,388
Brazil . . . •. . , .
618,723
600,000
Barbados . . . . . . .
Union of Soviet
l/0ther British W. Indies
21,321 Z
475,124
Socialist Republics
Nigeria
,
5,377
5,203
Argentina
2/0ther British W. Africa
16,004
237
Haiti
........
2/Other French Africa . .
689
9
9 .
9,333
Ecuador . . . .
Algeria and Tunisia .
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2f Other than Algeria, Tunisia, and Madagascar.
Cotton, harsh or rough, of jess than 3/4" fj\
Imports Sept. 20. 1957. to Jan. 27. 1958

Cotton 1-1/8" or more

Imports August lt iy, 7 t 0 n ^, ^ p 1QCT

Established Quota (Global) Imports

Established Quota (Global)

70,000,000 1,550,903

45,656,420

(1) Quota terminated as of January 28, 1958,
by Pres. Proc. No. 3220.

Imports
45,656,420

Imports

TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE,
Thursday, February 13* 1958,

A-167

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established bythe 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. 1957, to February 11. 1958
Country of Origin
Egypt and the AngloEgyptian Sudan . .
*eru . . . . . . . .
British India . . . .
China
..
Mexico
Brazil . . . . . . .
Union of Soviet
Socialist Republics
Argentina . . » . . . .
Haiti . . . .
Ecuador . . .

Established' Quota

Imports

Country of Origin

Honduras a . . . .
Paraguay .
Colombia .
. . . .
Iraq . . . • . 9 .
British East Africa . .
8,883,259
Netherlands E. Indies.
600,000
Barbados
l/0ther British W. Indies
475,124
Nigeria
5,203
2/0ther British W. Africa
237
2/0ther French Africa . .
9,333
Algeria and Tunisia .
If Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2J Other than Algeria, Tunisia, and Madagascar.
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

Cotton, harsh or rough, of less than 3/4" m
Imports Sent. 20. 1057, to Jan. 27. 1958
'
Established Quota (Global) Imports
70,000,000 1,550,903
(1) Quota terminated as of January 28, 1958,
by Pres. Proc. No. 3220.

7,296

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

Cotton 1-1/8" or more
Established Quota (Global)
45,656,420 45,656,420

imports

«£~
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE2 Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries2 United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy*

Country of Origin

United Kingdom
Canada
France
British Incia
Netherlands
Switzerland .
Belgium
Japan
China
kgypt
Cuba
Germany
Italy

....

Established
TOTAL QUOTA

Total Imports
i Established s
Imports
Yf
Sept. 20, 19 57, to . 33-1/356 of 2 Sept. 20, 1957
Feb. 11, 1958
*• Total Quota ; to Fob. 11. 1958

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

689,134
239,690

6,915

25,443
7.088

5,482,509

942,735

1,599,886

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

1,441,152

689,134

75,807
6,996
22,747
14,796
12,853

Ju51$.
696,049

TREASURY DEPARTMENT
Washington

IMMEDIATE RLEASE,
Thursday, Pefer**»T»y ^ f 1958>

24'^
A-168

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1958, to
February 1, 1958, inclusive, of commodities for which quotas were
established pursuant to the Philippine Trade Agreement Revision Act
of 1955:

Conanodity

: Established Annual
: Quota Quantity

Buttons

807,500

Unit
:
of
: Imports as of
Quantity : Feb. 1, 1958
Gross

60,064

Cigars 190,000,000

Number 346,115

Coconut oil ............. 425,600,000

Pound 17,370,689

Cordage 6,000,000

Pound 580,116

(Refined
Sugars
(Unrefined.••••••
Tobacco 6,175,000

1,904,000,000

Pound

80,844,512
Pound

234,710

TREASURY DEPARTMENT
Washington

243
A-168

IMMEDIATE RLEASE,
Thursdayj February 13. 1958,

Commodity

: Established Annual
: Quota Quantity

Unit
of
: Imports as of
Quantity : Feb. 1, 1958

Buttons 807,500

Ooss

Cigars 190,000,000

Number

Coconut oil 425,600,000

Pound

17,370,689

Cordage • 6,000,000

Pound

580,116

(Refined
Sugars
1,904,000,000
(Unrefined.••••••

Pound

Tobacco 6,175,000

Pound

60,064
346,115

80,844,512
234,710

A-itf

BSCSDIAT3& RSLEASB,
Thursday, February 15, 1958.

The Treasury Department announced today that final tabulation of subscriptioae
fbr the recent exchange offering showed $9,772 million tor the now 2-1/2 percent
certificates due February 14, 1059, $3,828 million tor the $ percent bonds of 1964
due February IS, 1964, and $1,731 million tor the 3-1/2 percent bonds of 1990 due
February 15, 1900*
The following tables show the amounts outstanding of the five issues eligible
for exchange and the extent to which they are being exchanged for the new issues,
and subscriptions by Federal Reserve Districts.
(In millions of dollars)

aigiole
Old Issues

'Z-tfmlf

Feb. 14 Ctfs...

$10,851

$7,510

Mar. IS Bonds..

1,449

Apr. 1 Notes...

383

189

Apr. 15 Bills*.

1,751

$74

s or oo±jj
Subscript'Ions for Hew Issues
Total
Bonds
Bonds
$10,5S3
$1,953
$1,180

3?—i^im"

BiffliFiWBlWIf ^

Apr* 15 Ctfs...
3total..*..

$10,785

$9,772

t^^mmmmr^mmm

268

353

1,288

167

115

529

370

1,135

616

797

142

mmmhSSS,

349

$3,623

$1,731

$15,331

$1,454

SUBSCRIPTIONS BY FS&&RAL jEBSETO DISTRICTS
Federal Heserve
District

2-1/2$ Ctfa.
Series A-1959

3$ Bonds
Of 1964

3-1/2$ Bonds
Of 1990

Boston
Hew York
IWla&elphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

$ 127,222,000
7,963,030,000
81,933,000
185, 221,000
44,302,000
180,908,000
472,401,000
141,001,000
108,908,000
181,000
84*
968,000
258,160,000
11,245*000

$ 111,607,000
1,804,483,500
93,475,000
208,876,500
96,556,000
143,059,000
618,227,000
181,970,500
100,308,000
12$,377,500
06,160,500
470,730,000

$ 83,385,000
1,270,390,500
42,262,500
31,475,300
31,404,000
18,731,500
114,183,500
19,119,500
12,123,500
16,187,500
6,137,500
81,530,000

$9,772,460,000

$3,827,921,000

$1,730,899,000

Total

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, February 15, 1958.

A-169

The Treasury Department announced today that final tabulation of subscriptions
for the recent exchange offering shoved $9,772 million for the new 2-1/2 percent
certificates due February 14, 1959, $3,828 million for the 3 percent bonds of 1964
due February 15, 1964, and $1,731 million for the 3-1/2 percent bonds of 1990 due
February 15, 1990.
The following tables show the amounts outstanding of the five issues eligible
for exchange and the extent to which they are being exchanged for the new issues,
and subscriptions by Federal Reserve Districts.
(In millions of dollars)
Eligible
Old Issues
for
Exchange

Exchange Subscriptions for New Issues
2-1/2?
3?
^Tfl%
TTT~"
Ctfs.
Bonds
Bonds
±ota±

Unexchanged

Feb. 14 Ctfs $10,851 $7,510 $1,953 $1,120 $10,583 $ 268
Mar. 15 Bonds 1,449 337 592 353 1,282 167
Apr. 1 Notes 383 189 115 25 329 54
Apr. 15 Bills 1,751 674 370 91 1,135 616
Apr. 15 Ctfs 2,551 1,065 797 142 2,002 549
Total

$16,785 $9,772 $3,828 $1,731 $15,351 $1,454

SUBSCRIPTIONS BY FEDERAL RESERVE DISTRICTS
Federal Reserve
District

2-1/2$ Ctfs.
Series A-1959

5$ Bonds
of 1964

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

$ 127,222,000
7,965,050,000
81,955,000
185,221,000
44,502,000
180,908,000
472,401,000
141,001,000
108,908,000
121,161,000
84,968,000
252,160,000
11,245,000

111,607,000
1 ,604,465,500
95,475,000
208,676,500
96,556,000
145,059,000
618,227,000
161,970,500
100,508,000
126,377,500
86,160,500
470,730,000
6,310,500

$
83,565,000
1,270,590,500
42,262,500
51,475,500
51,404,000
18,751,500
114,185,500
19,119,500
12,125,500
16,187,500
6,157,500
81,550,000
3,988,500

$9,772,460,000

$3,827,921,000

$1,730,899,000

Total

3-1/2$ Bonds
of 1990

RELEASE A. M. 1KWSFAPER8,
Friday, February Xk. 1953.

f7<?

'Hie Treasury Department today issued the official notice of call for
redemption on June 15, 1958, of the partially tax-exaup* 8-$/* *******
treasury Bonds of 195&-65, dated June 15, 193&, *** June 15, 19&5* Siere
era now outstanding $918,780,600 of these bonds.
It has been the practice of the Treasury to ©all the partially taxexempt bonds at the first call dates because the total cost of these
borrowings to the Treasury, taking into account interest and the tax
advantages to the holder», is greater than the cost based upon currant
interest rates of new issues of comparable maturities.
The text of the formal notice of call la as folio we:
TWO AKD mREE-ftUARTKRS FERGEUT mASURY BQSPS OF 1953-65

^twmo *nm 15, 1938)
NOTICE OF GALL FDR REDEMPTION
To Holders of 2-3/* pareeat Treasury Bonds of 195&-65, and Others Concerned:
1. Public notiea is hereby given that all outstanding 2-yjk percent
Treasury Bonds of 1958-63, dated June 15, 1958, due June 15, 1963, are
hereby called tor redemption on June 15, 1958, on which date interest on
euch bonds v U l cease*
Z* Holders of these bonds may, in advance of the redemption date, be
offered the privilege of exchanging all or any part of their called bonds
for other interest-bearing obligations of the United States, in which event
public notice will hereafter be given and an official circular governing
the exchange offering will be issued.
5. Full information regarding tha presentation and surrender of the
bonds for cash redeaptlon under this call will be found in Department Circular 80. JOOT Revised, dated April 30, 1955*
Robert B. Anderson,
Secretary of tha Treasury,
•HOSASURY DEPARTMENT,
Washington, February Xk9 195&-

TREASURY DEPARTMENT

WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Friday, February 14, 1958.

The Treasury Department today issued the official notice of call for
redemption on June 15, 1953, of the partially tax-exempt 2-3/4 percent
Treasury Bonds of 1958-63, dated June 15, 1938, due June 15, 1963. There
are now outstanding $918,780,600 of these bonds.
It has been the practice of the Treasury to call the partially taxexempt bonds at the first call dates because the total cost of these borrowings to the Treasury, taking into account interest and the tax advantages to
the holders, is greater than the cost based upon current interest rates of
new issues of comparable maturities.
The text of the formal notice of call is as follows:
TWO AND THREE-QUARTERS PERCENT TREASURY BONDS OF 1958-65
~
(DATED JUNE 15, 1938)
NOTICE OF CALL FOR REDEMPTION
To Holders of 2-3/4 percent Treasury Bonds of 1958-63, and Others Concerned:
1. Public notice is hereby given that all outstanding 2-3/4 percent
Treasury Bonds of 1958-63, dated June 15, 1938, due June 15, 1963, are
hereby called for redemption on June 15, 1958, on which date interest on
such bonds will cease.
2. Holders of these bonds may, in advance of the redemption date, be
offered the privilege of exchanging all or any part of their called bonds
for other interest-bearing obligations of the United States, in which event
public notice will hereafter be given and an official circular governing the
exchange offering will be issued.
3. Full information regarding the presentation and surrender of the
bonds for cash redemption under this call will be found in Department Circular No. 300, Revised, dated April 30, 1955.

Robert B. Anderson,
Secretary of the Treasury,
TREASURY DEPARTMENT,
Washington, February 14, 1958.

February 4, 1958

IX? m.

M^HTiy L. HQQH3B

fhe following transactions were made in direct and guaranteed securities
of the Qovernsent for Treasury investments and other accounts during the
aonth of January, 1958t
Sales 1158,635,000.00
Purchases 35,259,000,00
$123,376,000.00

(Sgd) Charles X. Branaen

Chief, Investments Branch
Division of Deposits & Investments

TREASURY DEPARTMENT
WASHINGTON, D.C

IMMEDIATE RELEASE,
•Wodnooday, January 1[3, 195&*

During MI I I ii^niWlifnT, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net-#ttswtetsfes by the
Treasury Department of

0O0

7IB, ?76,040

255
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, February 14. 1958.

A-171

During January 1958, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net sales by the Treasury
Department of $123,376,000.

oOo

oqQ

BELEASE A. M. IWSFAPEHS,
Tuesday, February ±8, 1958.

The Treasury Department announced last evening that the tenders for 11,800,000,000,

or thereabouts, of 91-day Treasury bills to be dated February 20 and to matur

May 22, 1958, which were offered on February 13, were opened at the Federal B
Banks on February 17.
The details of this issue are as followss
Total applied for - 12,619,035,000
Total accepted
- 1,800,871,000

(includes 1302,315,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids*
High
tow
Average

" 2*£K
- 99.560
-99.562

I iil ll tst

« *
«

***** of discount approx. 1.654* pmr annum
» »
«
«
1.71*1$ »
»
«
« t?«
«
i.nx%
„
m

(h6 percent of the amount bid for at the low price was accepted)

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

total
Applied for

Total
Accepted

48,1*01,000
1,845,104,000
31,1*30,000
63,084,000
18,109,000
47,883,000
254,238,000
24,608,000
13,631,000
39,944,000
44,365,000
± p O f S'^flftfQQ
f 2,619,035,000

•

34,876,000
1,199*317,000
21,202,000
56,733,000
17,009,000
36,045*000
167,206,000
23,974,000
13,131,000
39,701,000
21,993,000
169,6^1,000
^1,800,871,000

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, February 18, 1958.

A-172

The Treasury Department announced last evening that the tenders for ft,800,000,000,
or thereabouts, of 91-day Treasury bills to be dated February 20 and to mature

May 22, 1958, which were offered on February 13, were opened at the Federal Reserve
Banks on February 17.
The details of this issue are as follows:
Total applied for - $2,619,035,000
Total accepted
- 1,800,871,000

(includes $302,315,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids;
High
Low

I IV f&

Average

.90.562

* u i v a l e n t » t e of discount approx. 1.654* per annum
e

„

(46 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
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

48,401,000
1,845,104,000
31,430,000
63,084,000
18,109,000
47,883,000
254,238,000
24,608,000
13,631,000
39,944,000
44,365,000
i88.g?flronQ
TOTAL

$ 2,619,035,000

Total
Accepted
34,876,000
1,199,317,000
21,202,000
56,733,000
17,009,000
36,045,000
167,206,000
23,974,000
13,131,000
39,701,000
21,993,000

I69.6flh,000
$ 1,800,871,000

?5St© take full account of the interests of ell groups
which may be particularly concerned, as well as tlie
need to maintain the strength and dyaaa£& character
of our oim economy.
I have talked of treasury's main concern in the-*
£tabtla*a as*4-1 know foreign relations and other aspects
of the program have been or will he covered by other
Departments.
A strong economy In the United States is the key
to our own future and a powerful support to the free
world. The Treasury Department favors H. R. 10363
and H. R. 10369 because we believe that this bill
provides authority to the President which is needed
to sustain the growth of our foreign trade, and thus
to contribute to the growth of our economy.
A

looking ahead to the future, we may be certain
that as our population grows» and our production
expands, and as we dip further into our own heritage
of resources, we will hate to <$mp&m4, mm

and mtm

upon foreign sources to maintain the^ efficiency mi

our production m*$ our standard #1 living. .To pay
tmw4m

ulmXX tmm

m £Am* eitpaadiag—

Cyt-y~<<f*>&Smt

Apart from considerations of our own self*interest
we must recognise that foreign nations are profoundly
affected by mmA coneeraed with the direction and trend
of our commercial., policy, They do not expect us to
propose drastic or mMmm

changes which weuld greatly

or quickly increase their marhsts here. They do hope
for assurance of reasonable continuity in our policies,
and a continuation of our willingness to negotiate
with them realistically in the furtherance of mutually
beneficial trade.
the proposal before you Is moderate.

It preserves

and strengthens the existing safeguards for our own
industries. We can be assured that the authority which
it provides to the President will be e3tety%sed so as

A*r

m a *

will aid materially in this task,
A prudent regard for our own future n®m&* would,
alone, favor continued effort to seek reductions in
trade barriers which bar our exports -* a policy which
we have been following under mm Trade Agreements program which has hmmm Am effect without interruption
since if S4 under both major political parties.
Important as our enperts are, perhaps equally
Important la thm long term to our continuing prosperity
and the further improvement of our standard of living
is our growing dependence m®wt otter countries for
vital materials and supplies. Our imports may look
"small in comparison with our gross national product***-- they
are only about 3 percent of the total, or a little over
&. percent of the movable goods we produce.

But for

many commodities we are much more dependent upon imported
supplies. For example, we now obtain from foreign
sources ajmoit ©ue*fourth of our iron ore, one-third
of our r&ber, o^er half of our raw wool, the great
bulk of our supplies of tin, nickel, bauxite and newsprint, and most of our supplies of ferro alloying ores
and metals which are essential to the manufacture of
modern equipment from machine tools to jet aircraft.

- 7 -

undertook a program of dollar liberalisation. By the
Organisation* s measurement, duller liberalization
freeing imports from the United States from restrictions
increased from 39 percent in 1954 to 54 percent in
May of 1957.
In most foreign eoumtries outside markets are even
more important than in the united States because their
foreign trade is an even larger proportion of their
total business activity.

dining trade, actual or prospective, may cause exchange
problems,

culties resulting from inflation or other causes can
lead to restrictions on foreign trade which can adversely affect our exports.

It is important to main-

'%Z- tain the progress we have made Am liberalization of
trade and transferability of currencies.

Our own

attitude and declared purpose will play a key role in
determining whether the world continues to progress
in this desirable direction.

The continuity and

stability which we seek for our foreign trade policies

. 6
m

V **

Insofar as financial controls are concerned, the
International Monetary Fund was able to state in It*
Manual Import for 1956;^hat 'foreign exchange restrictions
impose a less serious obstacle to International commerce
today than at any time since the mmUkmmi of World
War IX.*
Substantial progress has also been made Am the relaxation of quantitative restrictions en trade, although
we all agree that there Is much mm*

to be dene. This

progress has hmm most marked for the countries in
Western Europe, Most of the Astern European countries,
as wail as some countries outside of Europe, have Am
some degree relaxed trade restrictions or made them less
discriminatory in relation to dollar Imports.

Illustrative

©f this tendency is mm experience of the countries in
the Organisation for European Economic Cooperation. According to that Organization's method of measurement,
which is bated on the composition of trade tm tha base
year 194$, these countries have increased the liberaliaation
among themselves from 6® percent In 1950 to 89 percent in
1956.

Beginning with 1954, the member countries of OEEC

mutually beneficial foreign trade has not only permitted our exports to expend but has also enabled
many of our free world partners to build up their
economies without dependence upon continuing economic
assistance from this country*
The last war brought in its wake many die*
locations*

Our friends abroad m e n confronted

with unfavorable trade balances, and resorted to
exchange and trade restrictions ixi an effort to
safeguard their international financial positions*
Tha Treasury has bean concerned with these problems.
Our government's peliey has been to press for the
elimination of these restrictions as baiance-ofpayments positions improved.

Insofar as financial

-4-

264

km the pace of expansion in domestic demand
eased off during the pant year, the export sales
of some commodities continued at a high level. For
instance, higher exports of machine tools and metalworking machinery provided n major support to production during the first half of 1957 as shipments to
domestic customers declined sharply| during the first
9 months of 1957, cotton, cattle hides, bituminous
and anthracite coal, mad iron and steel scrap were
exported in larger quantities than during a comparable
period in the previous year, while domestic demand*
were declining.
It is plain, therefore, that foreign trade is
exerting an important sustaining and stabilizing
effect on production and employment in this country*
Should the markets for our exports decline, £his
shrinkage would be felt not only by those primarily
involved but also by secondary industries. aemV retail
trade and service activities in the community*'
As taxpayers, our citizens have another interest
in our foreign trade*

The growth and expansion of a

265

3 -

going broad percentage relationships indicate. To cite
a few examples: The proportion of our total production which was exported la 1956 ran
over 4G percent for copper sulphate,
cartela insecticides, track-laye*nejm|^ 'b'» >mm-m m**%FS*; *mw £

^mmfflmtm tW^fmMmm**mm^~mm*m

^f'^mmf^g^mmmmmj^mXw <p •

^ j * - ^ , - ^ over 3© percent for certain types of
construction and mining equipment,
complete civilian aircraft, molybdenum
ores and concentrates, and resin;
over 20 percent for sulphur and penicillin,
carbon black, lubricating oil, petro*
ieum coke Ami phosphate rock;
19 percent for motor trucks and eoaehesj
1® percent for anthracite eoel;
16 percent for dies el engines for certain
types of tractors end for turpentine |
14 percent for agriculture1/combines,
synthetic rubber mad bituminous coal;
and 11 percent for machine tools.
As any businessman can testify, the course of demand
in so sizeable a proportion of his market as these
percentages represent is likely to have a w r y Important
influence on hi* profits and mm the level of employment
he is able to maintain*

— 2-

26S

grown to more than 20 percent of world trade. In 195?
A

our exports amounted to about $19*1/2 billion dollars,
which is an increase of almost 60 percent in value and
moarly, half again as large in physical volume^ compared
with- the corresponding figures for 1953.
The sustaining role of our foreign trade in the
growth of our domestic economy is revealed Am the way
it has matched the spectacular growth in our domestic
production and employment. There have been notable
achievements in the growth of our gross national
product over the past decade, and our foreign trade
has consistently expanded at a comparable rate*
Approximately 3 million of our workers are now employed,
directly or indirectly, im producing goods for export
mid transporting them to foreign markets. More than
9 percent of the movable goods we produced in 1956 was
sold abroad. For agriculture, our foreign sales represented in the fiscal year 1957 between 12 and 13 percent
of our total agricultural output.
For many of our industries, foreign trade is even
more important in our own self-interest than the for€~

26» . CHAHKAK, AND MEMBERS OF I S CCi®fITTS£:

I am very pleased to appear before this Committee
today in support of H.R. 10368 and H.R. 10369, which
would

amend and extend present Trade Agreements

legislation.

We in the Treasury are especially con-

cerned with the Trade Agreements program's importance
to the maintenance of a healthy and expending domestic
economy.

^e have, of course, a special interest in

our domestic economy for the very practical reason
that this is the source of the tax revenues with
which the Treasury pays the Government's bills*
Our foreign trade is an essential source of our
economic strength*

It has contributed significantly

to production and employment in many of our industries.
It has frequently exerted a stabilising effect on
domestic production and employment when demands at
home have been declining.
«e are one of the world's great trading nations.
Twenty years ago, when the Trade Agreements Program
was getting under way, our exports comprised about 14
percent of the world's total. Today, our exports have

- 5The proposal before you is moderate. It preserves
and strengthens the existing safeguards for our own
Industries. We can be assured that the authority which it
provides to the President will be exercised so as to take
full account of the interests of all groups which may be
particularly concerned, as well as the need to maintain
the strength and dynamic character of our own economy.
I have talked of Treasury*s main interest in this
program. However, I know foreign relations and other aspects
of the program have been, or will be, covered by other
Departments.
A strong economy in the United States is the key to
our own future and a powerful support to the free world.
The Treasury Department favors H. R. 10368 and H. R. 10369
because we believe that this bill provides authority to the
President which is needed to sustain the growth of our
foreign trade, and thus to contribute to the growth of our
own economy.

0O0

- 4-

<6Q

internal financial difficulties resulting from inflation or
other causes can lead to restrictions on foreign trade which
can adversely affect our exports. It is Important to maintain the progress we have made In liberalization of trade
and transferability of currencies. Our own attitude and
declared purpose will play a key role In determining whether
the world continues to progress in this desirable direction.
The continuity and stability which we seek for our foreign
trade policies will aid materially in this task.
A prudent regard for our own future needs would, alone,
favor continued effort to seek reductions in trade barriers
which bar our exports — a policy which we have been following
under our Trade Agreements program which has been in effect
without interruption since 193? under both major political
parties.
Important as our exports are, perhaps equally important
In the long term to our continuing prosperity and the
further improvement of our standard of living is our growing
dependence upon other countries for vital materials and
supplies. Our Imports may look small in comparison with
our gross national product — they are only about 3 percent
of the total, or a little over 6 percent of the movable goods
we produce. But for many commodities we are much more
dependent upon imported supplies. For example, we now obtain
from foreign sources almost one-fourth of our iron ore, onethird of our rubber, over half of our raw wool, the great
bulk of our supplies of tin, nickel, bauxite and newsprint,
and most of our supplies of ferro alloying ores and metals
which are essential to the manufacture of modern equipment
from machine tools to jet aircraft.
Looking ahead to the future, we may be certain that as
our population grows, and our production expands, and as we
dip further into our own heritage of resources, we will have
to depend more and more upon foreign sources to maintain
the volume and effieieney of our production and our standard
of living. We shall want to have expanding markets for our
own exports, as these Import requirements increase.
Apart from considerations of our own self-interest we
must recognize that foreign nations are profoundly
affected by and concerned with the direction and trend of our
commercial policy. They do not expect us to propose drastic
or sudden changes which would greatly or quickly increase
their markets here. They do hope for assurance of reasonable
continuity in our policies, and a continuation of our
willingness to negotiate with them realistically in the
furtherance of mutually beneficial trade.

- 3-

2?u
As taxpayers, our citizens have another interest in
our foreign trade. The growth and expansion of a mutually
benefieial foreign trade has not only permitted our
exports to expand but has also enabled many of our free
world partners to build up their economies without dependence
upon continuing economic assistance from this country.
The last war brought in its wake many dislocations.
Our friends abroad were confronted with unfavorable trade
balances, and resorted to exchange and trade restrictions
in an effort to safeguard their international financial
positions. The Treasury has been concerned with these
problems. Our government's policy has been to press for the
elimination of these restrictions as balance-of-payments
positions improved.
Insofar as financial controls are concerned, the
International Monetary Fund was able to state in its
Annual Report for 195©: "Foreign exchange restrictions
impose a less serious obstacle to International commerce
today than at any time since the outbreak of World War II."
Substantial progress has also been made in the
relaxation of quantitative restrictions on trade, although
we all agree that there is much more to be done. This
progress has been most marked for the countries in
Western Europe. Most of the Western European countries, as
well as some countries outside of Europe, have in some degree
relaxed trade restrictions or made them less discriminatory
in relation to dollar imports. Illustrative of this tendency
is the experience of the countries In the Organization for
European Economic Cooperation. According to that Organization's
method of measurement, which is based on the composition of
trade in the base year 1948, these countries have increased
the liberalization among themselves from 68 percent In 1950
to 89 percent in 1956. Beginning with 1954, the member
countries of OEEC undertook a program of dollar liberalization.
By the Organization's measurement, dollar liberalization
freeing imports from the United States from restrictions
increased from 39 percent in 1954 to 54 percent in May of 1957.
In most foreign countries outside markets are even
more important than in the United States because their
foreign trade is an even larger proportion of their total
business activity. Their foreign trade and financial positions
are thus closely Inter-related. Declining trade, actual or
prospective, may cause exchange problems. On the other hand

£72.*

- 2-

27^

over 30 percent for certain types of
construction and mining equipment,
complete civilian aircraft, molybdenum
ores and concentrates, and resin;
over 20 percent for sulphur and penicillin,
carbon black, lubricating oil, petroleum
coke and phosphate rock;
19 percent for motor trucks and coaches;
18 percent for anthracite coal;
16 percent for diesel engines for certain
types of tractors and for turpentine;
14 percent for agricultural combines,
synthetic rubber and bituminous coal;
and 11 percent for machine tools.
As any businessman can testify, the course of demand in
so sizeable a proportion of his market as these percentages
represent is likely to have a very important influence on
his profits and on the level of employment he is able to
maintain.
As the pace of expansion in domestic demand eased off
during the past year, the export sales of some commodities
continued at a high level. For instance, higher exports
of machine tools and metal-working machinery provided a
major support to production during the first half of 1957
as shipments to domestic customers declined sharply;
during the first 9 months of 1957, cotton, cattle hides,
bituminous and anthracite coal, and iron and steel scrap
were exported in larger quantities than during a comparable
period in the previous year, while domestic demands were
declining.
It is plain, therefore, that foreign trade is
exerting an important sustaining and stabilizing effect on
production and employment in this country.
Should the markets for our exports decline, this
shrinkage would be felt not only by those primarily
involved but also by secondard industries, retail trade
and service activities in the community.

TREASURY DEPARTMENT
WASHINGTON

27?

Statement by Julian B e Baird, Under Secretary of the
Treasury for Monetary Affairs, before the House Ways
and Means Committee, Tuesday, February 18, 1958,
MR, CHAIRMAN, AND MEMBERS OF THE COMMITTEE:
I am very pleased to appear before this Committee today in support
of HeR. 10368 and H.R„ 10369, which would amend and extend present Trad<
Agreements legislation. We in the Treasury are especially concerned
with the Trade Agreements program's importance to the maintenance of
a healthy and expanding domestic economy. We have, of course, a
special interest in our domestic economy for the very practical reason
that this is the source of the tax revenues with which the Treasury
pays the Government's bills.
Our foreign trade is an essential source of our economic strength.
It has contributed significantly to production and employment in many
of our Industries. It has frequently exerted a stabilizing effect on
domestic production and employment when demands at home have been
declining.
We are one of the world's great trading nations. Twenty years
ago, when the Trade Agreements Program was getting under way, our
exports comprised about 14 percent of the world's total. Today, our
exports have grown to more than 20 percent of the world total. In
1957 our exports amounted to about $19-1/2 billion dollars, which is
an increase of almost 60 percent in value and Is about half again as
large in physical volume, as compared with the corresponding figures
for 1953.
The sustaining role of our foreign trade in the growth of our
domestic economy is revealed in the way it has matched the spectacular
growth in our domestic production and employment. There have been
notable achievements in the growth of our gross national product over
the past decade, and our foreign trade has consistently expanded at a
comparable rate. Approximately 3 million of our workers are now
employed, directly or indirectly, in producing goods for export and
transporting them to foreign markets. More than 9 percent of the
moveable goods we produced In 1956 was sold abroad. For agriculture,
our foreign sales represented In the fiscal year 1957 between 12 and
13 percent of our total agricultural output.
For many of our industries, foreign trade is even more important
in our own self-interest than the foregoing broad percentage relationships indicate. To cite a few examples: The proportion of our total
production which was exported in 1956 ran
about 40 percent for copper sulphate,
A-173
certain insecticides, track-laying tractors, and ammonium sulphate;

TREASURY DEPARTMENT
WASHINGTON

?73

Statement by Julian B. Baird, Under Secretary of the
Treasury for Monetary Affairs, before the House Ways
and Means Committee, Tuesday, February 18, 1958.
MR, CHAIRMAN, AND MEMBERS OF THE COMMITTEE:
of H R ^o^l^SJTn* ^o!£PeaLb?fore this Committee today in support
of H.R. 10368 and H.R. IO369, which would amend and extend present Trade
w l S ^ t ? r i S 5 1 K a t l 0 n V W 6 ± n t h ? T r e a s ^ are especiaUy conclmed
with the Trade Agreements program's Importance to the maintenance of
a healthy and expanding domestic economy. We have, of course, a
?K2 ZLi^tl* i n 0 U r d o m e s t i o economy for the very practical reason
that this is the source of the tax revenues with which the Treasury
pays the Government's bills.
-treasury
Our foreign trade is an essential source of our economic strength.
It ™ ! ? S 2 ^ J b ? t e d s ^ n F i c a n t l y t 0 Production and employment S many
2 L f ^ i n ^ r i ^ I t , h a S ^equently exerted a stabilizing effect on
domestic production and employment when demands at home have been
declining.
We are one of the world's great trading nations. Twenty years
ago, when the Trade Agreements Program was getting under way. our
exports comprised about 14 percent of the world's total. Today, our
exports have grown to more than 20 percent of the world total. In
1957 our exports amounted to about $19-1/2 billion dollars, which is
an increase of almost 60 percent In value and is about half again as
large In physical volume, as compared with the corresponding figures
for 1953•
The sustaining role of our foreign trade in the growth of our
domestic economy is revealed in the way it has matched the spectacular
growth in our domestic production and employment. There have been
notable achievements in the growth of our gross national product over
the past decade, and our foreign trade has consistently expanded at a
comparable rate. Approximately 3 million of our workers are now
employed, directly or indirectly, In producing goods for export and
transporting them to foreign markets. More than 9 percent of the
moveable goods we produced In 1956 was 3old abroad. For agriculture,
our foreign sales represented in the fiscal year 1957 between 12 and
13 percent of our total agricultural output.
For many of our industries, foreign trade is even more important
in our own self-interest than the foregoing broad percentage relationA-173
ships Indicate. To cite a few examples: The proportion of our total
production which was exported in 1956 ran
about 40 percent for copper sulphate,
certain
insecticides,
track-laying
tractors,
and ammonium
sulphate;

- 2 over 30 percent for certain types of
construction and mining equipment,
complete civilian aircraft, molybdenum
ores and concentrates, and resin;
over 20 percent for sulphur and penicillin,
carbon black, lubricating oil, petroleum
coke and phosphate rock;
19 percent for motor trucks and coaches;
18 percent for anthracite coal;
16 percent for diesel engines for certain
types of tractors and for turpentine;
14 percent for agricultural combines,
synthetic rubber and bituminous coal;
and 11 percent for machine tools.
As any businessman can testify, the course of demand in
so sizeable a proportion of his market as these percentages
represent is likely to have a very important influence on
his profits and on the level of employment he is able to
maintain.
As the pace of expansion in domestic demand eased off
during the past year, the export sales of some commodities
continued at a high level. For Instance, higher exports
of machine tools and metal-working machinery provided a
major support to production during the first half of 1957
as shipments to domestic customers declined sharply;
during the first 9 months of 1957, cotton, cattle hides,
bituminous and anthracite coal, and iron and steel scrap
were exported in larger quantities than during a comparable
period in the previous year, while domestic demands were
declining.
It is plain, therefore, that foreign trade is
exerting an Important sustaining and stabilizing effect on
production and employment in this country.
Should the markets for our exports decline, this
shrinkage would be felt not only by those primarily
involved but also by secondard industries, retail trade
and service activities in the community.

- 3A 4.
27^
As taxpayers, our citizens have another interest in
K ^ ^orfign^trade. The growth and expansion of a mutually
beneficial foreign trade has not only permitted our
exports to expand but has also enabled many of our free
world partners to build up their economies without dependence
upon continuing economic assistance from this country;
The last war brought in its wake many dislocations.
our friends abroad were confronted with unfavorable trade
balances, and resorted to exchange and trade restrictions
anerrort to safeguard their international financial
positions. The Treasury has been concerned with these
problems. Our government's policy has been to press for the
elimination of these restrictions as balance-of-payments
positions improved.
Insofar as financial controls are concerned, the
International Monetary Fund was able to state in its
Annual Report for 1956: "Foreign exchange restrictions
impose a less serious obstacle to international commerce
today than at any time since the outbreak of World War II."
Substantial progress has also been made in the
relaxation of quantitative restrictions on trade, although
we all agree that there is much more to be done. This
progress has been most marked for the countries in
Western Europe. Most of the Western European countries, as
well as some countries outside of Europe, have in some degree
relaxed trade restrictions or made them less discriminatory
in relation to dollar imports. Illustrative of this tendency
is the experience of the countries In the Organization for
European Economic Cooperation. According to that Organization's
method of measurement, which Is based on the composition of
trade in the base year 1948, these countries have increased
the liberalization among themselves from 68 percent in 1950
to 89 percent in 1956. Beginning with 1954, the member
countries of OEEC undertook a program of dollar liberalization.
By the Organization's measurement, dollar liberalization
freeing Imports from the United States from restrictions
increased from 39 percent in 1954 to 54 percent In May of 1957.
In most foreign countries outside markets are even
more Important than in the United States because their
foreign trade Is an even larger proportion of their total
business activity. Their foreign trade and financial positions
are thus closely inter-related. Declining trade, actual or
prospective, may cause exchange problems. On the other hand

- 4-

276

internal financial difficulties resulting from Inflation or
other causes can lead to restrictions on foreign trade which
can adversely affect our exports. It is important to maintain the progress we have made in liberalization of trade
and transferability of currencies. Our own attitude and
declared purpose will play a key role in determining whether
the world continues to progress in this desirable direction.
The continuity and stability which we seek for our foreign
trade policies will aid materially in this task.
A prudent regard for our own future needs would, alone,
favor continued effort to*seek reductions in trade barriers
which bar our exports — a policy which we have been following
under our Trade Agreements program which has been in effect
without interruption since 193^ under both major political
parties.
Important as our exports are, perhaps equally important
in the long term to our continuing prosperity and the
further improvement of our standard of living is our growing
dependence upon other countries for vital materials and
supplies. Our imports may look small in comparison with
our gross national product — they are only about 3 percent
of the total, or a little over 6 percent of the movable goods
we produce. But for many commodities we are much more
dependent upon imported supplies. For example, we now obtain
from foreign sources almost one-fourth of our Iron ore, onethird of our rubber, over half of our raw wool, the great
bulk of our supplies of tin, nickel, bauxite and newsprint,
and most of our supplies of ferro alloying ores and metals
which are essential to the manufacture of modern equipment
from machine tools to jet aircraft.
Looking ahead to the future, we may be certain that as
our population grows, and our production expands, and as we
dip further into our own heritage of resources, we will have
to depend more and more upon foreign sources to maintain
the volume and efficiency of our production and our standard
of living. We shall want to have expanding markets for our
own exports, as these import requirements increase.
Apart from considerations of our own self-interest we
must recognize that foreign nations are profoundly
affected by and concerned with the direction and trend of our
commercial policy. They do not expect us to propose drastic
or sudden changes which would greatly or quickly Increase
their markets here. They do hope for assurance of reasonable
continuity In our policies, and a continuation of our
willingness to negotiate with them realistically in the
furtherance of mutually beneficial trade.

-5-

27r

The proposal before you is moderate. It preserves
and strengthens the existing safeguards for our own
industries. We can be assured that the authority which it
provides to the President will be exercised so as to take
full account of the Interests of all groups which may be
particularly concerned, as well as the need to maintain
the strength and dynamic character of our own economy.
I have talked of Treasury's main interest in this
program. However, I know foreign relations and other aspects
of the program have been, or will be, covered by other
Departments.
A strong economy in the United States is the key to
our own future and a powerful support to the free world.
The Treasury Department favors H. R. IO368 and H. R. 10369
because we believe that this bill provides authority to the
President which is needed to sustain the growth of our
foreign trade, and thus to contribute to the growth of our
own economy.

0O0

- 3-

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

at which Treasury bills are originally sold by the United States is considered t

be interest. Under Sections h$k (b) and 1221 {$) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold is not

considered to accrue until such bills are sold, redeemed or otherwise disposed o
and such bills are excluded from consideration as capital assets. Accordingly,

the owner of Treasury bills (other than life insurance companies) issued hereund

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.

?7a

- 2-

asm
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 27, 1958

, in cash or other immediately available funds

or in a like face amount of Treasury bills maturing

February 27, 1958

. Cash

TREASURY DEPARTMENT
Washington

/
'•

A. M.
mWSi RELEASE/^SOfiKBJG NEWSPAPERS,

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 Tjy*frnmry 27. 1958 , in the amount of
$1.800.644.000 » to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated February 27. 1958 , and will mature May 29. 1958 , 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,/riaK> o^lock p.m., Eastern Standard time, Monday Tfeh-rnary ?4 msa *
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 deale
in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
—

9»*tpmmm*Amm*mwlmnM\mm9m

•^mm^^l^i(^g^=m^Srimmmrm.TiifWiiae^

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, February 20, 1958.

A-174

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 27> 195©,
in the amount of $1,800,644,000, 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 27, 195o,
and will mature May 29, 1958,
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 24, 1958.
Tenders will not be received at tne
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
4-fcr.A* ^ H m a l a e it 99.925. Fractions may not be used. It is
urged tnat^enders be'made on the printed forms and forwarded In the
spfoial 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
rtthort 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
or^vm? n? T T M S U T V bills applied for, unless the tenders are
^cSanied r by S a^express^uaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
peder»rRestrve Banks and Branches, following which public announceFederal Reserve BanKsmiu
Department of the amount and price
™ n L " o f acceded bids
SosHubmltting 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
SubJectPto these reservations, non-competitive tenders for
tioo 000 or less without stated price from any one bidder will be
iccep^ed in f u U 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 27,1958, in cash or other Immediately available funds
or in a like face amount of Treasury bills maturing February 27, 1958.
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

IMMEDIATE RSLSASJB,
Thursday, February %p* 1958.
I9ie Treasury Stepartigent announced today that on Friday,
February 28, it vill offer for cash subscriptioa a Treasury bond
maturing in the general range of nine years, in the amount of
approximately $1-1/4 billion. The rate at which the nev bond will
be offered,, and other details regarding the offering, including
the extent to union payment by credit in Treasury tax and loan
accounts will be permitted, will be announced next Tuesday,
February 25.

283
TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, February 20, 1958.

A-17f>

The Treasury Department announced today that on Friday,
February 28, it will offer for cash subscription a Treasury bond
maturing in the general range of nine years, in the amount of
approximately $1-1/4 billion. The rate at which the new bond will
be offered, and other details regarding the offering, including
the extent to which payment by credit in Treasury tax and loan
accounts will be permitted, will be announced next Tuesday,
February 25.

%L WvWkd? I M ^ mS^i^^jjmOA 'J^yy 'Jo
CU/i

U/M

t.f,,( y I'• •-

a/-

n y.-i

\'.w&'\:
7y^'y ? U f 'Lrjv« ^nymi(JUu M iloJ
.„,
..
.
ux'-"
!

-j;

^
/

u> J'A.JU *A^k£L A.,l#

-4^fc£FT RELEASE jf^1

^^tfy^p^'

Secretary Anderson today announced the appointment of
Charles J. Gable, Jr. of Philadelphia, Pennsylvania as an
Assistant to the Secretary* effective March 3* 1958.
Mr. Gable will assist Under Secretary for Monetary
Affairs Julian B. Baird in Treasury financing and debt
management.

He succeeds Paul I. Wren who has resigned to

return to the Old Colony Trust Company in Boston.
A native of Pennsylvania, Mr. Gable was born in Lansford
and attended schools in Elkins Park and Philadelphia.

1929 he was graduated from Princeton University with a degree
of A.B., having majored in economics.
Practically all of Mr. Gable*s business career has been
in the commercial banking field.

He joined The First National

Bank of Philadelphia In 1931 and served in various capacities,
including Vice President until the merger of that bank with
the Pennsylvania Company for Banking and Trust, in 1955. Since
that time he has been senior Vice President of The First
Pennsylvania Banking and Trust Company, the successor corporation.
Mr. Gable is a veteran of World War II. He has been active
in and served on several boards of directors of community,
charitable and religious organizations in Philadelphia.
With his wife and five children, three daughters and
two sons, Mr. Gable resides at 1820 Valley Road, Meadowbrook,
Pennsylvania.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Monday, February 24, 1958.

A-176

*
S e ? r e t a r y Anderson today announced the appointment
of Charles J. Gable, Jr. of Philadelphia, Pennsylvania
as an Assistant to the Secretary, effective March 3,
,J
1958.
*
Mr
Gable w111
- *
assist Under Secretary for Monetary
Affairs Julian B. Baird in Treasury financing and debt
management. He succeeds Paul I. Wren who has resigned
to return to the Old Colony Trust Company in Boston.
A native of Pennsylvania, Mr. Gable was born in
Lansiord and attended schools in Elkins Park and
Philadelphia. In 1929 he was graduated from Princeton
University with a degree of A.B., having majored in
economics.
Practically all of Mr. Gable!s business career
has been in the commercial banking field. He joined
The First National Bank of Philadelphia in 1931 and
served in various capacities, including Vice President
until the merger of that bank with the Pennsylvania
Company for Banking and Trust, in 1955. Since that
time he has been senior Vice President of The First
Pennsylvania Banking and Trust Company, the successor
corporation.
Mr, Gable is a veteran of World War II. He has
been active in and served on several boards of
directors of community, charitable and religious
organizations in Philadelphia.
With his wife and five children, three daughters
and two sons, Mr. Gable resides at 1820 Valley Road,
Meadowbrook, Pennsylvania.

0O0

287

HIXASB A. K. ISWSMPSBS,
Tuesday, February 25, 1958

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 27 and to mature Ma

1958, which were offered on February 20, were opened at the Federal Beserve Banks
February 24 •
The details of this issue are as follows:
total applied for - #2,595,544,000
Total accepted
- 1,800,475*000

(includes #266,924,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99.701 Equivalent rate of discount approx, 1.183$ pmr annum
Low
* 99.690
»
«
«t
»
it
1.2261 «
Average

- 99.696

•

1.202g

(8 percent of the amount bid for at the low price was accepted)
federal leserve
District
•'Winn

i II

11 n n i i n . , mi in,i m

total
Applied for

total
Accepted

$
21,963,000
1,850,566,000
38,627,000
43,837,000
12,141,000
45,275,000
233,964,000
20,618,000
14,249,000
46,651,000
51,024,000
216,629,000

$
21,663,000
1,225,713,000
12,332,000
43,477,000
10,791,000
27,987,000
198,748,000
19,818,000
13,849,000
38,410,000
23,333,000
164,354,000.

#2,595,51*4,000

$1,800,475,000

IM,

Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Ohicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOfAL

MNJIW t*ii°

TREASURY DEPARTMENT
WASHINGTON, D.C
HEUBASE A. M. NEWSPAPERS,
Tuesday, February 2$. 1958.

A-177

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 27 and to mature May

1958, which were offered on February 20, were opened at the Federal Reserve Banks o
February 24.
The details of this issue are as followst
Total applied for - $2,595,544,000
Total accepted
- 1,800,475,000

(includes $266,924,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids?
High
Low

- 99.701 Equivalent rate of discount approx. 1.183# per annum

- 99.690

1.226$

°- 99*696 « t« w 9« H 1,202$ B •»
(8 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

$ 21,963,000
1,850,566,000
38,627,000
43,837,000
12,141,000
45,275,000
233,964,000
20,618,000
14,249,000
46,651,000
51,024,000
216,629,000

$
21,663,000
1,225,713,000
12,332,000
43,477,000
10,791,000
27,987,000
198,748,000
19,818,000
13,849,000
38,410,000
23,333,000
164,354,000

$2,595,5W*,ooo

$1,800,475,000

TOTAL

B®|gDIAT£ BaJSASK,
Tuesday, February 25, 1558.
The Treasury ©apartment *mmmmA
today that the Treasury
tad«
which the cash sTJkacrlption books will be open on Friday, February 28,
will be dated February 28, 1958, and will bear interest fro® that data
at the rate of 3 pereant per annua, and will mature August 15,
*&**-**
amount of the offering is $1,S50 million, or thereabouts, and in addition,
up to $100 million may be allotted to Government Investment Accounts.
Interest will be payable on a semiannual basis on August IS, 3J58, and
thereafter each six months until the bonds became payable. Delivery of
the new bonds will be made on march 10. The books will be open only tmr
one day, on February 28.
Subscriptions from commercial banks, which far this purpose are
defined as banks accepting demand deposits, tmr their own account will be
received without deposit but will be restricted in each case to an amount
not exceeding 25 percent of the combined capital, surplus and undivided
profits of the subscribing bank, A payment of 15 percent of the amount
of bonds subscribed for must be made on a H other subscriptions, and this
payment must be forwarded with the subscriptions in Immediately available
funds, or by credit in a Treasury tax and loan account of the bank
through which the aubscriftioa is entered, to the Federal Beserve Bank or
Branch, or to the Office of the Treasurer of the United states. Following
allotment, any portion of the 15 percent payment in excess of the amount
of bonds allotted will be returned to the subscribers. The new bonds may
be paid for by credit in Treasury tax mam loan accounts.
Commercial banks and other lenders are requested to refrain from
m i H w g unsecured loans or loans collateralized In whole or in part by
the bonds subscribed for, to cover the 15 percent deposits rehired 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 m a n before midnight February 28, w i H be considered as timely.

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, February 25, 1958.

The Treasury Department announced today that the Treasury bond on
which the cash subscription books will be open on Friday, February 28,
will be dated February 28, 1958, and will bear interest from that date
at the rate of 3 percent per annum, and will mature August 15, 1966. The
amount of the offering is $1,250 million, or thereabouts, and in addition,
up to $100 million may be allotted to Government Investment Accounts.
Interest will be payable on a semiannual basis on August 15, 1958, and
thereafter each six months until the bonds become payable. Delivery of
the new bonds will be made on March 10. The books will be open only for
one day, on February 28.
Subscriptions from commercial banks, which for this purpose are
defined as banks accepting demand deposits, for their own account will be
received without deposit but will be restricted in each case to an amount
not exceeding 25 percent of the combined capital, surplus and undivided
profits of the subscribing bank. A payment of 15 percent of the amount
of bonds subscribed for must be made on all other subscriptions, and this
payment must be forwarded with the subscriptions in immediately available
funds, or by credit in a Treasury tax and loan account of the bank
through which the subscription is entered, to the Federal Reserve Bank or
Branch, or to the Office of the Treasurer of the United States. Following
allotment, any portion of the 15 percent payment in excess of the amount
of bonds allotted will be returned to the subscribers. The new bonds 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 bonds subscribed for, to cover the 15 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 February 28, will be considered as timely.

- 3 -

mm.

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

- 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 March 6, 1958 , in cash or other immediately available funds

m
or in a like face amount of Treasury bills maturing

March 6, 1958

. Cash

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

TREASURY DEPARTMENT
Washington

A -' ' i

A.M.
WOC RELEASE/ WSEB& NEWSPAPERS,
Thursday, February 27. 1958
The Treasury Department, by this public notice, invites tenders for
$1,800.000.000 5 or thereabouts, of 91 -day Treasury bills, for cash and
in exchange for Treasury bills maturing March 6, 1958 , in the amount of
$1,799.986.000

> 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 6. 1958 , and will mature June 5. 1958 , 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,/tax o•clock p.m., Eastern Standard time, Monday, March 3, 1958
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

incorporated banks and trust companies and from responsible and recognized deale

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

WASHINGTON, D.

RELEASE A.M. NEWSPAPERS,
Thursday, February 27, 1958.

A-179

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 6, 1958,
in the amount of $1,799,986,000, 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 6 1958
and will mature June 5, 1958,
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, March 3, 1958.
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 bllJs applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury '
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 6, 1958,
In cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 6. 1958.
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

nQS

RELEASE A. M. NEWSPAPERS,
Tuesday, March 4t 1958.

The Treasury Department announced last evening that the tenders for 11,800,000,000,
or thereabouts, of 91-day Treasury blUa te be dated March 6 and to mature June 5, 1958,
which were offered on February 27, were opened at the Federal Reserve Banks on March }.
The details ef this issue are as follows;
Total applied for - #2,194,797,000
Total accepted
- 1,800,197*000

(include* #07,795,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bidet
High - 99*670 Equivalent rate of discount approx. 1*305? per annum
Low
* 99.646
"
' • ce *
«
*o. 1.40Q£ "
p

Average

- 99*658

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

Total
Applied far

total the
Accepted

$31,1*15,000
1,496,7^,000
37,032,000
56,415,000
12,793,000
29,510,000
271,455,000
30,032 ,000
16,277,000
42,629,000
36,822,000
133,658,000

$
2i,4l5,ooo
1,154,459,000
34,732,000
56,415,000
12,793,000
29,510,000
231,451,000
30,032,000
16,277,000
42,629,000
36,822,000
133,658,000

$2,194,797,000

H,80O,197,0OO

TOTAL

ft
X.%%1% *
xl
(77 percent ef the amount bid for at the lew prioe wae accepted)

Federal Reserve
District

•

296
TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday. March 4, 1958*

A _ lA

The Treasury Department announced last evening that the tenders for ftL,800,000,000,
or thereabouts, of 91-day Treasury bills to be dated March 6 and to mature June 5,

which were offered on February 27, were opened at the Federal Reserve Banks on Marc
The details of this issue are as follows;
Total applied for - $2,194,797,000
Total accepted
- 1,800,197,000

(includes $237,795,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99*670 Equivalent rate of discount approx. X.30$% per annum
M
Low
- 99.646
"
»'
«
«
1.400$ "

Average - 99.658 n « M n n l.35l^ •» "
(77 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for

Total
Accented

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

$
31,415,000
1,1*96,759,000
37,032,000

$
21,415,000
1,154,459,000
34,732,000

56,lo5,ooo

56,4i5,ooo

12,793,000
29,510,000
30,032,000
16,277,000
42,629,000
36,822,000
133,658,000

12,793,000
29,510,000
231,455,000
30,032,000
16,277,000
42,629,000
36,822,000
133,658,000

$2,194,797,000

$1,800,197,000

27i,455,ooo

TOTAL

^Q7
C3 >

m u m m HSUHU»,
Tuesdayj March 4, 1358.
Hie Treasury today announced a 20 percent allotaeat on subscriptions in excess of $10,000 for the current cash offering of
$1-1/4 billion of 3 percent Treasury Bands of IBM*

Safeeeripfeioae

for $10,000 or less will be allotted in *fcU, Subscriptions tor
more than $10,000 ifill be allotted not less than $10,000.
£a addition to the mmmt

allotted to the public, $100 aillion

of these bonds w i U be allotted to Qovem®ent Xnvesfeaent Accounts.
Reports received thus far from the Federal Beaerre Banks show
that subscriptions total about $8,715 sillies, details by Federal
Reserve Mstrict® as to subscriptions and allotments will be
announced xmm final reports are received froa the lederal Beserv©
Banks.

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Tuesday, March 4, 1958.

A-181

The Treasury today announced a 20 percent allotment on subscriptions in excess of $10,000 for the current cash offering of
$1-1/4 billion of 3 percent Treasury Bonds of 1966. Subscriptions
for $10,000 or less will be allotted in full. Subscriptions for
more than $10,000 will be allotted not less than $10,000.
In addition to the amount allotted to the public, $100 million
of these bonds will be allotted to Government Investment Accounts.
Reports received thus far from the Federal Reserve Banks show
that subscriptions total about $6,715 million. Details by Federal
Reserve Districts as to subscriptions and allotments will be
announced when final reports are received from the Sederal Reserve
Banks.

- 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
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 -

Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be

final. Subject to these reservations, noncompetitive tenders for $200,000 or les

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

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on March 13, 1958 , in cash or other immediately available funds

SEE

or in a like face amount of Treasury bills maturing
March 13, 1958
Cash
and exchange tenders will receive equal treatment. Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

sale or other disposition of the bills, does not have any exemption, as such, an
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 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

301

TREASURY DEPARTMENT
Washington

A. M.
%m RELEASE/ MXXXM NEWSPAPERS,
Thursday, March 6, 1958
^ -

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

——m

~w~

in exchange for Treasury bills maturing
March 13, 1958
, in the amount of
$ 1,802,558,000 , to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided.

The bills of this series will be

dated March 15, 1958 a and will mature June 12. 1958 , 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,/JBKK o'clock p.m., Eastern Standard time, Monday, Itoch 10. 1Q58
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

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

RELEASE A.M. NEWSPAPERS,
Thursday, March 6. 1958.

A-182

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 March 13, 1958,
in the amount of $1,802,558,000, 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 13, 1958,
and will mature June 12, 1958,
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 10, 1958.
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 billis applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
* or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price
range of accepted bids. Those submitting tenders will be advised of
the acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final. Subject to these reservations, non-competitive tenders for
$200,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted

- 2 competitive bids. Settlement for accepted tenders In accordance
with the bids must be made or completed at the Federal Reserve Bank
on March 13, 1958,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 13, 1958.
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

303
- 2 In July 1956, combined sales of the two series exceeded
redemptions by $11 million.

Thereafter, the bond program

leveled out, with a persistent excess of redemptions over
sales from month to month for some time.

Improved results

in the fall of 1957 signified a reversal of that trend,
however, with the excess of redemptions being reduced from
month to month until the sales excess was accomplished in
February 1958.
James F. Stiles, Jr., national director of the Savings
Bonds Division, also expressed satisfaction.
"Naturally I am pleased to see bond sales on the upward
trend again," Mr. Stiles said.
It indicates some very positive things: First, it
expresses the confidence of the American people in the soundness
of our country and in Savings Bonds as a vital force in its
economy.

Second, it shows the public's desire to be a

part of the government's efforts to strengthen our over-all
power for peace."
Savings Bond sales campaigns are now being organized in
32 metropolitan centers of the country and 200 other
major cities, with emphasis on the payroll savings method
of bond-buying.

This is the first time since the end

of World War II that the Treasury has launched Savings Bond
campaigns simultaneously in all the key employment areas
of the country.
This year's sales goal for E and H bonds combined is
$4,700 million. Sales last year were $4,507 million.
0O0

304
RELEASE A.M. NEWSPAPERS,
ThurDdtt!!fr-"<fegeh 65 1958.

^
^
A- / 5 J j

This is important, not

only for the individuals who are buying these bonds but
also for the economic health of the Nation by providing
better distribution of the public debt," Secretary Anderson
said.
The combined sales in February were up $47 million
(13 percent) from the combined sales for February, 1957, and
the combined redemptions were down $46 million (ll percent.)
February figures for the two series separately were:
E bond sales $335 million, redemptions $364 million;
H bond sales $72 million, redemptions $16 million. The
total amount of E and H bonds outstanding rose at the end of
February to a record-breaking $41.8 billion.

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A.M. NEWSPAPERS,
Friday, March 7, 1958.

N ^ V ^

A-183

Combined sales in February of Series E and H Savings
Bonds exceeded redemptions of matured and unmatured bonds of
these series for the first time in any month since July, 1956,
the Treasury announced today.
The combined sales were $407 million and the combined
redemptions were $379 million, giving a sales excess of
$23 million.
This development brought this congratulatory statement
from Treasury Secretary Robert B, Anderson:
"It is good for the country to have the Savings Bonds
program moving forward in this way. This is important, not
only for the Individuals who are buying these bonds but
also for the economic health of the Nation by providing better
distribution of the public debt," Secretary Anderson said.
The combined sales in February were up $47 million
(13 percent) from the combined sales for February, 1957, and
the combined redemptions were down $46 million (ll percent.)
February figures for the two series separately were:
E bond sales $335 million, redemptions $364 million;
H bond sales $72 million, redemptions $16 million. The total
amount of E and H bonds outstanding rose at the end of February
to a record-breaking $41.8 billion.
In July 1956, combined sales of the two series exceeded
redemptions by $11 million. Thereafter, the bond program
leveled out, with a persistent excess of redemptions over
sales from month to month for some time. Improved results in
the fall of 1957 signified a reversal of that trend, however,
with the excess of redemptions being reduced from month to
month until the sales excess was accomplished in February 1958.
James F. Stiles, Jr., national director of the Savings
Bonds Division, also expressed satisfaction.
"Naturally I am pleased to see bond sales on the upward
trend again," Mr. Stiles said.
"It indicates some very positive things: First, it
expresses the confidence of the American oeople in the soundness
of our country and in Savings Bonds as a vital force in its
economy. Second, it shows the public's desire to be a part
of the government's efforts to strengthen our over-all power for
peace."

- 2 -

30b

v mJlV^? Bond sales campaigns are now being organized in
32 metropolitan centers of the country and 200 other major
cities, with emphasis on the payroll savings method of bond?uyin?i: m 1S the first time since the en<* of World War II
tnat the Treasury has launched Savings Bond campaigns
simultaneously in all the key employment areas of the country.
*ii -7^hl?n^?ar,s oales goal for E and H bonc*s combined is
$4,700 million. Sales last year were $4,507 million.

oOo

h-i T"
IMMEDIATE RELEASE,
Friday, March 13 1958*

mthe Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
$1,250 million, or thereabouts, of 3 percent Treasury Bonds of 1966.
Kiese bonds are dated February 28, 1958, and will mature August 15,
1966.
Subscriptions and allotments were divided among the several
Federal Heserve Districts and the Treasury as follows:
Federal
Reserve
Sotal SubscripDistrict

Itotal Subscriptions Received

^Ston
$ 337,761,500
$ 69,086,500
Sew York
Philadelphia
Cleveland
Hichaond
Atlanta
Chicago
St. I*>uis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Govt.Ihv.Accts.
TOTAL

tions Allotted

3,009,717,000
220,139,000
363,748,000
245,006,500
227,402,000
858,212,500
167,658,000
116,233,000
162,160,000
281,641,000
725,162,500
615,500

613,475,000
44,887,000
74,425,000
51,051,000
51,004,500
177,830,000
38,019,500
24,855,000
35,050,500
58,038,500
146,555,500
191,500
100,000,000

$6,715,456,500

$1,484,465,500

TREASURY DEPARTMENT

°°^

WASHINGTON, D.C

IMMEDIATE RELEASE,
Friday, March 7, 1958.

A-184

The Treasury Department today announced the subscription and
allotment figures with respect to the current cash offering of
$1,250 million, or thereabouts, of 3 percent Treasury Bonds of 1966.
These bonds are dated February 28, 1958, and will mature August 15,
1966.
Subscriptions and allotments were divided among the several
Federal Reserve Districts and the Treasury as follows:
Federal Reserve Total Subscrip- Total SubscripDistrict
tions Received
tions Allotted
Boston $ 337,761,500 $ 69,086,500
New York
3,009,717,000
Philadelphia
220,139,000
Cleveland
363,748,000
Richmond
245,006,500
Atlanta
227,402,000
Chicago
858,212,500
St. Louis
167,658,000
Minneapolis
116,233,000
Kansas City
162,160,000
Dallas
281,641,000
San Francisco
725,162,500
Treasury
615,500
Govt.Inv.Accts.
TOTAL

$6,715,456,500

613,473,000
44,887,000
74,425,000
51,051,000
51,004,500
177,830,000
38,019,500
24,853,000
35,050,500
58,038,500
146,555,500
191,500
100,000,000
$1,484,465,500

RELEASE A. n. Ml&f SFAPBRS,
Tuesday, March 11, 1958.

The Treasury Department announced last evening that the tenders for $1,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated March 13 and to mature June 12,

which were offered on March 6, were opened at the Federal Reserve Banks on March 10.
the details of this Issue are as followss
Total applied for - t*#436,867,000 .«tersd on a
Total accepted
- 1,700,377,000
l ™ ~

full at the average price shown below)
Range of accepted competitive bides (Excepting one tender of 1100,000)
High
Low

- 99.660 Equivalent rate of discount approx. 1.3452 pmr mnmm
- 99.609
*
«
r
«
*
1^47*

Average

- 99.613

* 532>J

(3 percent of the amount bid for at the law price was accepted)

Federal Reserve
District

Total
Applied for

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

TOTAL

Total
Accepted

49,260,000
1,689,294,000
35,050,000
55,979, 000
17,562, 000
58,516,,000
237,529,,000
30,740,,000
15,459,,000
71,022t,000
30,293,000
146.163.000

$
34,260,000
1,078,254,000
15,050,000
50,329,000
17,562,000
56,746,000
194,409,000
30,740,000
15,459,000
64,972,000
27,353,000
115.243.00Q

|2,li36,867fOOO

11,700,377,000

RELEASE A. M. NEWSPAPERS,
Tuesday, March 11. 1958.

A_!8£

i.
The Treasury Department announced last evening that the tenders for $1,700,000,000,
or thereabouts, of 91-day Treasury bills to be dated March 13 and to mature June 12, 1958,
which were offered on March 6, were opened at the Federal Reserve Banks on March 10.
The details of this issue are as follows $
Total applied for - $2,436,867,000
Total accepted
- 1,700,377,000

(includes $312,155,000 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)
*&&
Low

- 99.660 Equivalent rate of discount approx. 1.3452 per annum
n
- 99.609
n
n
*
n
l.$kl% *
»

Average

- 99.613

1.5322

(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

$
49,260,000
1,689,294,000
35,050,000
55,979,000
17,562,000
58,516,000
237,529,000
30,740,000
15,459,000
71,022,000
30,293,000
146,163,000

$
34,260,000
1,078,254,000
15,050,000
50,329,000
17,562,000
56,746,000
194,409,000
30,740,000
15,459,000
64,972,000
27,353,000
115,243,000

$2,436,867,000

$1,700,377,000

TOTAL

S T A T U T O R Y D E B T LIMITATION
A S 0F.«3?*fefO9Sr...?6ji 1 9 5 8

„ .. L
Mar. 1 0 , 1958
Washington, ...Z:...'
?......£Mlr..
ations Issued under authority
oited States (except such goat*
aggregate $275,000,000,000
the
period beginning on February 26, 1958 and ending Tune 30, 1959, the above limitation ($275,000,000,000) shall be temporarily
increased by $5,000,000,000.
< 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
$280,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills
Certificates of indebtedness
Treasury notes
BondsTreasury
Savings (current redemp. value)
Depositary.....
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
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'I Monetary Fund series
Total

$26,126,631,000
31*475,356,000
20,483.088.000 $

78,085,075.000

86,348 , 030 ,350
52,31^»600,504
1^3,572,500
10,058.852,000

148,865»055,35k

29,798,363,000
12,698,080,000
3.462,500.000

45,958.943.000
272,909,073,354
559,085,496

^9,519,989
900,014
725.000.000

775,420.003
27^,243,578,853

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A
>
101,965,350
Matured, interest-ceased
798.900
Grand total outstanding ._
Balance face amount of obligations issuable under above authority,

102.764.250
27^1346,243,103
5,653,656,897

Reconcilement with Statement of the Public Debt...F.®hruary 2 8 , 1 9 5 8
(Date')

(Daily Statement of the United States Treasury,

February..2.8|...1^8.
'(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.. ..

A-186

)
274,678,784,268
102.764.250
274,781,548,518
435,205.415
274,346,343,103

STATUTORY DEBT LIMITATION
February 28. 1958
A<5 O F
AS 0 F
"*
*

±2

w..hin«t«i M ^ -

> 1 958

Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $275,000,000,000
(Act of June 26, 1946; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount." T h e Act of February 26, 1958, (P.L. 85-336 85th Congress) provides that during the
period beginning on February 26, 1958 and ending June 30, 1959, the above limitation ($275,000,000,000) shall be temporarily
increased by $5,000,000,000.
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
$280,000,000)000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills ...
Certificates of indebtedness.
Treasury notes
BondsTreasury
Savings (current redemp. value)
Depositary.....
„
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
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

$ 26,126,631,000
31,475,356,000
20.483.088.000 $

78,085,075,000

86 ,348 ,030 ,350
52»314»600,504
143 ,572,500
10.058.852.000

148,865,055,354

29,798,363,000
12,698,080,000
3,462,500,000
~

45.958.943.000
272,909,073,354

559.085,496
49,519,989
900,014
725.000.000

775,420.003
27^,243,578,853

Guaranteed obligations (not held by Treasury):
Interest-bearing:
101,965,350
Debentures: F.H.A
798,900
Matured, interest-ceased
__
Grand total outstanding
Balance face amount of obligations issuable under above authority,

102.764,250
274.346.343,103
5.653,656,897

Reconcilement with Statement of the Public Debt ...February 2 8 , 1 ? 5 8 .
(Date)
(Daily Statement of the United States Treasury
February. 28,t>>lgjg
j
(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 Hebt limitation

A-186

27^,678.784,268
102.764.250
274.781,548,518
435.205.415
274.346,343.103

- 3 -

or by any local taxing authority.

For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections 454 (b) and 1221 {$) of the Internal Revenue Code of
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. 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 >y *

Secretary of the Treasury expressly reserves the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respect shall be

final. Subject to these reservations, noncompetitive tenders for $200,000 or les

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

tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on March 20, 1958 , in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 20, 1958 Cash

and exchange tenders will receive equal treatment. Cash adjustments will be made

for differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the

sale or other disposition of the bills, does not have any exemption, as such, and
loss from the sale or other disposition of Treasury bills does not have any
special treatment, as such, under the Internal Revenue Code of 19$k. The bills
are subject to estate, inheritance, gift or other excise taxes, whether Federal

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

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

X1KMA
TREASURY DEPARTMENT
Washington
A.M.
Xfift RELEASE^ XDDHHM NEWSPAPERS,
Thursday, March 13, 19$8
.

See
The Treasury Department, by this public notice, invites tenders for
$1,700,000,000

, or thereabouts, of

in exchange for Treasury bills maturing

-day Treasury bills, for cash and
March 20, 1958

cr
$1,700,115>000

, in the amount of

B5
, to be issued on a discount basis under competitive and non-

Eg
competitive bidding as hereinafter provided.
dated
March 20, 1958
, and will mature

The bills of this series will be
June 19, 1958
w n e n 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, <a«/o*clock p.m., Eastern Standard time, Monday, March 17, 1958

X-tA
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
the price offered must be expressed on the basis of 100, with not more than three
decimals, e. g., 99.925. Fractions may not be used.

It is urged that tenders

Tenders will be received without deposit from

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

TREASURY DEPARTMENT
a«AW-^-'vr:---«irrrr

wm.v-iM

..* -J»J./»' j*.tf ar^r'fHWPT-'.g^ja:

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, March 13, 1958.

A-187

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 March 20, 1958
In the amount of $1,700,115,000 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 20, 1958,
and will mature June 19, 1958,
when the face amount will be
payable without interest. They villi 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, March 17, 1958.
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 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 £??£e5iSiK?HbldB-4. Settlement for accepted tenders In accordance
M
u o ^ ^ l * b e Inade o r comPleted at the Federal Reserve Bank
on March 20, 1956,
in cash or other immediately available funds
or in a like face amount of Treasury bills maturing March 20, 1958
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 speeial 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

rf- /??
<g

®PB«lMOOIBa'inKlil»

found, drafts of jfcteef proposed agreement will b e prepared and submitted
to the respective governments for consideration wlUi a VUIIW to
^.^InterestedJ|pa#t4e« in the United States may submit suggestions
ftfr inclusion in such a convent:j^^^

ubher p m t i n c n e .

*W^*W?^>4W«V^:^^
.•i^'^

inarms*ion, €o Mr. Dan Throop Smith, Deputy to the Secretary of the
Treasury, Treasury Department, Washington 25, D. C.
0 $0

TREASURY DEPARTMENT

31B

WASHINGTON, D.C.
RELEASE AM NEWSPAPERS
Thursday, March 13, 1958

A-188

Technical discussions are scheduled to be resumed in Washington
in the near future between representatives of the governments of
Mexico and the United States, looking toward the conclusion of an
income tax convention between the two countries for the avoidance of
double taxation and the elimination of other tax obstacles to the
international flow of trade and investment.
If bases for agreement are found, drafts of a proposed agreement
will be prepared and submitted to the respective governments for
consideration.
Interested persons in the United States who desire to submit
suggestions for possible inclusion in such a convention should forward
them to Mr. Dan Throop Smith, Deputy to the Secretary of the Treasury,
Treasury Department, Washington 25, D. C.

###

-2'-. * U

Commodity

Period and Quantity

:Unit
:Imports as of
of
Quantity :Mar. 1, 1958

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter)... Aug. 1, 1957
Rye. rye flour, and rye meal...,
,12 mos. from
July 1, 1957
Canada
Other countries
Butter substitutes, including
butter oil, containing 45$
or more butterfat
Tung oil.

* Imports as of Mar. 11, 1958.
** Adjusted

Calendar Year

1,709,000

Pound

Quota Filled

182,280,000 Pound

Quota Filled

3,720,000

Pound

1,200,000

Pound

Feb. 1 - Oct. 31, 1958
Argentina
18,475,901**Pound
Paraguay
2,437,128 Pound
Other Countries 739,366 Pound

1,199,952
692,514*
Quota Filled
Quota Filled

IMMEDIATE RELEASE,
Thursday, March IS. 1QS8

TREASURY DEPARTMENT
Washington
A-189

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 1, 1958, inclusive, as follows:

Unit :
of
: Imports as of
Quantity: Mar. 1. 1958

Commodity

Tariff-Bate Quotas;
Cream, fresh or sour •

Calendar Year

1,500,000

Gallon

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

3,000,000

Gallon

Cattle, less than 200 lbs. each.
12 mos. from
April 1, 1957

200,000

Head

17,337

Head

72,748

Cattle, 700 lbs. or more each
(other than dairy cows)

Jan. 1, 1953 Mar. 30, 1958

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

120,000

Tuna fish

Calendar Year

35,892,221
To be
announced

White or Irish potatoes:
Certified seed
Other

12 mos. from
Sept. 15, 1957

114,000,000
36,000,000

Walnuts.

Calendar Year 5,000,000

Pound 665,947

Almonds, shelled, blanched,
roasted, or otherwise prepared
or preserved.•••••

Oct. 23, 1957 -5,000,000
Sept. 30, 1958

Pound 4,808,108

Alsike clover seed.

12 mos. from
July 1, 1957

Pound

Peanut oil,

12 mos. from
July 1, 1957

80,000,000 Pound

Woolen fabrics

Calendar Year

14,200,000

3,000,000

Pound

Qaota Filled (1]

Pound 4,341,824
Pound Qaota Filled
Pound
68,740,086

Pound

229,339

5,084,360

(1) Imports for consumption at the quota rate are limited to 8,973 055 lbs during
the first three months of the calendar year.
*^UW>
lbs. during

(Continued)

32l
TREASURY DEPARTMENT
Washington

IMMEDIATE RELEASE
Thursday. M»Tv»h 13, 1958.

A-I89

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 1, 1958, inclusive, as follows:

Unit :
of
: Imports as of
Quantity: Mar. 1, 1958

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

Cattle, less than 200 lbs. each. 12 mos. from
April 1, 1957

200,000

Head

17,337

Cattle, 700 lbs. or more each Jan. 1, 1958 (other than dairy cows)
Mar. 30, 1958

120,000

Head

72,748

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

35,892,221
To be
announced

Pound

Quota Filled (l)

Pound 4,341,824

White or Irish potatoes:
Certified seed
••••• 12 mos. from
Other
Sept. 15, 1957

114,000,000
36,000,000

Pound Quota Filled
Pound
68,740,086

Walnuts Calendar Year

5,000,000

Pound 665,947

Almonds, shelled, blanched, Oct. 23, 1957 roasted, or otherwise prepared Sept. 30, 1958
or preserved.•••••
••••

5,000,000

Pound 4,808,108

Alsike clover seed •••• 12 mos. from
July 1, 1957
Peanut oil... 12 mos. from

3,000,000

Pound

229,339

80,000,000 Pound
July 1, 1957

Woolen fabrics Calendar Year

14,200,000 Pound 5,084,360

(1) Imports for consumption at the quota rate are limited to 8,973,055 lbs. during
the first three months of the calendar year.

(Continued)

- 2 -

Commodity

Period end Quantity

Unit
of
Imports as of
:Quantity :Mar. 1, I958

Absolute Quotas:
Peanuts, shelled, unshelled,
blanched, salted, prepared, or
preserved (incl. roasted pea- 12 mos. from
nuts but not peanut butter)... Aug. l, 1957
Rye, rye flour, and rye meal....
.12 mos. from
July 1, 1957
Canada
Other countries
Butter substitutes, including
butter oil, containing 45$
or more butterfat
Tung oil,

* Imports as of Mar. 11, 1958.
** Adjusted

Calendar Year

1,709,000

Pound

Quota Filled

182,280,000 Pound

Quota Filled

3,720,000

Pound

1,200,000

Pound

Feb. 1 - Oct. 31, 1958
Argentina
18, U75,901-** Pound
Paraguay
2,437,128 Pound
Other Countries 739,366 Pound

1,199,952
692.51k*
Quota Filled
Quota Filled

-&-

COTTON WASTES
(In pounds)

<•">

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

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, 1957, to
Mar, 111 1958

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

773,918
239,690

5,482,509
if Included in total imports, column 2.
Prepared in the Bureau of Customs.

47,319
_
mm

6,91?
1,067,842

Established s
Imports
33-1/3* of s Sept. 20, 1957
Total Quota : to Mar* 11, 1958

1,441,152

773, 918

75,807
-

22,747
14,796
12,853

25,443
7.088
1,599,886

itSii.
780,833

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE,
Thursday, March 13, 1958.

A-1Q0

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 ^han rough or harsh under 3/4H
Imports Sept. 20. 1957, to March 11, 1953
Country of Origin Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras ...... 752
Egyptian Sudan . . .
783,816
Per
*
247,952
British India . . . . .
2,003,483
China
1,370,791
Me
xi c o
8,883,259
Brazil . . . v . . . .
618,723
Union of Soviet
Socialist Republics •
475*124
Argentina
5,203
Haiti
237
Ecuador
9,333

7,296
8,883,259
600,000
-

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

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

1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
2/ Other than Algeria, Tunisia, and Madagascar.
rqjg^ L'jy^-m-. ~J~_ 1 ffiflpBaj J^ Cotton 1-1/8" or more
sfetlfk^iiyr7^
^jffi^fc^lf

Imports August 1 T 1957 to Dec. 31, 1957, incl.

.'^^"^r^^^lrii^. ~-X yWLWBEk Established Quota (Global) Imports
45,656,420 45,656,420

IMMEDIATE RELEASE,
Thursday, March 13, 1958.

TREASURY DEPARTMENT
Washington
A-190

"•"""MSi'KS a=srsiS3^-rfsrirss^.*:—
Country of Origin
Egypt and the AngloEgyptian Sudan . .
Peru . .
British India . . , .
China . . . . . . . .
Mexico
Brazil . . . v . . . ,
Union of Soviet
Socialist Republics
Argentina
*aiti
Ecuador

V
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rongh or harsh unrtei. 3/4*
JJL
Imports Sept. 20. 1057, to March 11, 1958
'
Established Quota
Imports
Country of Origin
Established Quota

Honduras ..... .
Paraguay . . . . . . .
Colombia
Iraq • • • • . . . , a
British East Africa . a
8,883,259
Netherlands E. Indies.
600,000
Barbados
l/0ther British W. Indies
475*124
Nigeria . . . . . . .
5,203
2/0ther
British W. Africa
237
,2/0
the
r
French Africa . .
9,333
Algeria and Tunisia .
Hi m h ^ ^ Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
|/ Other than Gold Coast and Nigeria.
y Other than Algeria, Tunisia, and Madagascar.
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

7,296

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

_Cotton 1-1/8" or more
Imports August"l, 1957 to Dec. 31. 1957,
Established Quota (Global) Imports
^'656,420 ^5,656,420

lncl,

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

Catalf ^ ^
° ' ° ' ' U'l?aill
oanaaa
239,690
France . . . . . . . ..
227,420
British India . . . . . .
69,62?
Netherlands
68,240
Switzerland . . . . . . .
44,388
Belgium
,
38,559
Japan . . . . . . . . . . .
341,535
China
17,322
Egypt e
8,135
Cuba . . . . • • » . . .
6,544
6
J?1?^ •
?
>329
5.482,509
ltaly
. . . . . 21,263
1/ Included in total imports, column 2«
Prepared in the Bureau of Customs.

1
Total Imports s Established . "
Imports
17
. Sept. 20, 1957, to : 33-1/3* of : Sept. 20, 1957
s Mar. 11,- 1958
* Total Quota ; to Marc 11, 1958
TO 918

'
039 590
—
> 7 330

~
~
"
~
"
°*
1,067,8Z£

"
6,915

-W,152
„
«75 807
•
'
22 ?4?
Ik 196
12*853
*
„"
.

773, 918
_
—
Z
Z
"
™*
"*

25,443
1,599,886
7,088

780,833
6,915

41M

TREASURY DEPARTMENT
Washington
A-191
IMMEDIATE RELEASE,
Thursday, March 13, 1958.
The Bureau of Customs announced today the following preliminary
wlST*? ^ S * 2 . * 1 1 ? i B « x > r t s f o r consumption from January 1, 1958, to
* £ , K 1 9 5 8 ' ^c^sive, of commodities for which quotas were
PtirSUant t 0 t h e
ofl955
^ i P P ^ 6 ^ade Agreement Revision Act

Commodity

I Established Annual
J Quota Quantity

Imports as of
Mar, 1, 1958

Buttons .....##0### 807,500

Gross

108,449

Cigars .•... #. 190,000,000

Number

678,190

Coconut oil 425,600,000

Found

2&98819658

&>rdage 6,000,000

Pound

761,401

(Refined
Su ars
S
,
1,904,000,000
( Unrefined ..

Pound

Tobacco .....•• 6,175,000

Bound

2,154,860
192,707,998
398,916

TREASURY DEPARTMENT
Washington

^ Cm W

A-191
IMMEDIATE RELEASE,
Thursday, March 13, 1958
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1958, to
March 1, 1958, inclusive, of commodities for which quotas were
G
f 1955 S h e d p U r S U a n t t 0 t h e P h i l i P P l n © Trade Agreement Revision Act

Commodity

* Established Annual
J Quota Quantity

Unit
of
Quantity

Imports as of
Mar, 1, 1958

—4 ?

Buttons «,.,,,,,,,,

807,500

Gross

108,449

Cigars 190,000,000

Number

678,190

Coconut oil , 425,600,000

Pound

2S98S1965&

Cordage • ... 6,000,000

Pound

761,401

(Refined .....
Sugars
1,904,000,000
( Unrefined • •

Pound

Tobacco ,..,, 6,175,000

Pound

2,154,860
192,707,998
398,916

March kt

1958
/> <^ y
C ... *

Hift following transactions were Bade in direct and guaranteed securities
e f the Government for .-.reasury investments and other accounts during the montn
of February, 195?:
Sales $292,072,000.00
Purchases 136.178,500.00
1155.893.500.00

(S-iiJ w.**'*tfd £. jSrannan
Chief, Investments Branch
Division of deposits & Investments

L_J

TREASURY D E P A R T M E N T
WASHINGTON, D.C.

-yv^Lt^'1* fl_ ff >
IMMEDIATE RELEASE, /
Friday, -frafoinuai'y lk\ 1U96.

-^J^tf
A-*r*

feu*****
During TninniiMP^1958, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net sales by the Treasury

\4f^C^9S.*rmo
Department of Tl?3j37n.feQ;

0O0

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Friday, March lk3 1958.

A-192

During February 1958, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net sales by the Treasury
Department-of $155,893,500.

oOo

^
WdMSn M. m. wmm?m>,
l%o*4*yw mrmb IB. X9$B.

A aJ
• •'

The Treasury Department announced last *m*A*M that the tenders for |i,700,000,OOS»

or thereabouts, mt 91-day treasury bills ta be stated mmh W *i*t %* mtmtm June If,
1^0, whieh were offered ©a mrmh 13, were opened at the Federal \\m*t*m Banks ©n
mroh 17.
The details of this issue are as fellows $
Total applied fay - f2,507,15§,000
fetal accepted
- 1,700,310,000

Bangs of aoacpttd eessp#tltiv# bids*
^k - 99.61X bivalent ml* of diseount mpprox. X*302i per mmm
Urn
- 99 Ml
•
• a
»

1.357* *

Average - 99.661 ** * * « » 1.31*3$ * •
(73 pereent of tbe *mm% bii for at the leu prim ws accepted)
Federal nmmrwm
District

Total
Applied for

Total
Accapted

Boston
mv fork
?hila4«lj»hla
Cleveland
Richmond
Atlanta
Chicago
St. Ionia
Mlaaespolis
Itensae City
Dallas
San Francisco

I kx9m9om

* 31,65^,000
fSi,?75,OO0
2S,220,OQO
57,753,000
22,270,000

1,670,825,000
35,2^0,000
63,?O3fO0O
22,270,000
53,256,000
319,580,000
t*3,681*,0O0
u<,iiSi*,o©0
1*6,117,000
36J65,000
tOTAl

*g»*g|*»
t,507,158,000

k$,m9ooo
30^,110,^30
t*3,68l*,000
13,§>5a,O0O
1*3,127,000
21,765,000
%,7OOt3ia,O00

RELEASE A. M. NEWSPAPERS,
Tuesday, March 18. 1958.

A-193

The Treasury Department announced last evening that the tenders for $1,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated March 20 and to mature June 19
1958, which were offered on March 13, were opened at the Federal Reserve Banks on
March 17.
The details of this issue are as follows:
Total applied for - #2,507,158,000
Total accepted
- 1,700,318,000

(includes $329,977,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)

Range of accepted competitive bids:
High - 99.671 Equivalent rate of discount approx. 1.302$ per annum
n
Low
- 99.657
« w
w
«
1.357$ "
Average - 99.661 « www n 1.3^3$ « «
(73 percent of the amount bid for at the low price was accepted)

Federal Reserve
District

Total
Applied for

Total
Accepted

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

01,669,000
1,670,825,000
35,220,000
63,703,000
22,270,000
53,256,000
339,580,000
l*3,68li,000
lU,li5n,000
1*6,127,000
36,765,000
139,605,000

$2,507,158,000

31,699,000
958,775,000
28,220,000
57,753,000
22,270,000
19,686,000
309,810,000
li3,68U,000
13,95U,000
1*3,127,000
28,765,000
112,605,000

$1,700,318,000

TREASURY DEPART^CSNT
Washington

232

Statement by Treasury Secretary Robert T?«.
Anderson before tha Subcommittee on
International Finance of the Senate Banking
and Currency Committee, 10:00 a.m. E.S.T.,
Tuesday, Ma&ch 18, 1958.
It is a pleasure to appear before your subcommittee with
respect to Senate Resolution 264, which your distinguished
chairman has Introduced. The resolution proposes chat consideration be given to the establishment of an International
Development Association in cooperation witn the International
Bank for Reconstruction and Development. It is contemplated
that such an agency would provide long-term dollar and hard
currency loans at a low rate of interest and repayable in local
currencies to supplement World Bank loans, and would also use
foreign currencies resulting from the sale of United States
agricultural surpluses and other programs In its lending
activities.
This proposal relates to questions of real importance
to both this country and the less-developed countries of the
free world. We must recognize that the desires of the lessdeveloped countries for economic developuent financing
frequently exceed their capacity to service loans from the
Export-Import Bank and the International Bank. Since the
International Bank is financed largely by borrowing in the
American market, its loans must be repayable for the most part
in dollars. Many of the less-developed countries have a
limited capacity to service dollar loans. Loans paj^able in
the currencies of the borrowing country are very much easier
to service than loans payable in dollars. This of course is
one of the reasons why our own Development Loan Fund is making
loans on these flexible terras. Senator Monroney's proposal
represents a valuable additional suggestion as to how to deal with
this problem.
It has been suggested by the Chairman that the International Development Association be set up with an original
capital of $1 billion, in dollars or hard currency. Of this
amount, the United States would probably put up 30 percent,
or $300 million. The Association would also have the use of
local currencies, including a large portion of those which the
United States has accumulate 1 from its large-scale disposal
of agricultural surpluses. The Chairuan also suggests
A-194

333
- 2that the loans of the International Development Association should
be subordinated to the loans of the International Bank, and that
it might extend its own loans for 40 years at low interest rates,
with payments of interest and principal being made in the currency
of the borrowing country.
The resolution and the suggestions that have been made in
implementing its objectives are being given and should be given
most careful and thorough examination. It appears that in any
undertaking of a multilateral program of loans repayable in
local currency, the best way to do so would be through the
use of an affiliate of the International Bank which could draw
upon the experience and personnel of that organization. However,
the implications of the proposal are far-reaching, and we shall
need to devote much time and effort to give it the thorough
consideration which it warrants. We must explore various
economic, financial and legal questions. The creation of an
international institution involving large sums of money is a
major effort of international financial negotiation, and we
would need to be sure of our grounds before undertaking such
an important endeavor. In this light we may wish to suggest
for your consideration some modifcations in the wording of the
proposed resolution. For example, in order to be slightly more
specific as to the relationship of the proposed International
Development Association to the Bank, we would offer the suggestion that the last clause of the opening paragraph of the
resolution read "as an affiliate of the International Bank for
Reconstruction and Development."
One of the advantages sought by the resolution is that
countries other than the United States would provide additional
financing of economic development which they may not be
likely to furnish in the absence of such an institution. As
outlined in the proposal, such additional financing is
anticipated from subscriptions of $700 million in hard or usable
currencies from foreign countries.
While it would be very helpful if capital for development
abroad could be made available on a larger scale from some of
the other countries, It is not now known whether foreign countries
would be willing to subscribe substantial amounts of convertible
currencies to such an institution. Many of the 65 member
countries of the International Bank regard themselves as lessdeveloped areas and might want to consider whether they should
provide capital from their limited reserves of convertible

- 3-

334

currencies to finance development in other areas. The
industrialized countries of Europe, Canada, Japan and a few
other areas provide the best possibilities for seeking subscriptions In hard currencies. To some extent they are now
exporting capital through public loans and credits, through
direct pr5ovate investments, and other forms of foreign investment. Foreign central banks and international investors have
also purchased substantial amounts of dollar obligations of
the International Bank.
The experience of the International Bank is illuminating,
and suggests both the possibilities and many o?: the practical
problems encountered in multilateral financing. The Articles
of Agreement of the International Bank provide that each member
shall contribute, In addition to two percent in gold or dollars,
Id percent of its capital subscription in Its own currency. The
Bank has had available for lending out of its two percent capital,
$63.5 million from the United States and about $120 million from
other countries. The 18 percent contributions are not
automatically convertible since they nay be used only with the
permission of the subscribing government. Countries have
been urged to make funds available for the Bank's lending
operations from the 18 percent capital* The total subscriptions forming this portion of the capital amount to the
equivalent of $1,680 million. A little more than half of this
has been loaned, amounting to $890 million. The United States
subscription amounted to $571.5 million. The balance of the
amount loaned consists of the Canadian subscription and part of .
the capital subscriptions of Germany, Italy, the United Kingdom,
Belgium, France, the Netherlands, Sweden and small amounts from
other countries. Besides the $319.5 million obtained from these
countries, the Bank has obtained releases under which it expects
to be able to use about $250 million in the near future. Many
of the countries have from tine to time Imposed special
conditions upon the use of funds released by them.
While the experience of the International Bank is valuable
in judging the prospects for obtaining capital subscriptions;.
from other countries in convertible or usable currencies,
there is one important difference between the Bank and the
proposed International Development Association. The International Bank makes bankable loans, most of which are repayable
in dollars, and the rest are to be serviced in major trading
currencies. The International Development Association would
be making loans most of which would be repayable in the currency
of the borrowing country. Just how this difference in the
hardness of the assets held by the two institutions would affect
the attitude of foreign countries toward capital subscriptions
to the new institution is not entirely clear, and would have to
be determined by consultation.

.4-

The second way in which it is proposed that the International
Development Association augment the resources available for
economic development is through the use of local currency which
has accrued from various united States programs. It is
suggested that currencies accumulated by the united States
could be used for economic development programs through the
proposed institution. I would like to examine this aspect of
the proposal in a little more detail.
Broadly speaking, the degree of success which might result
from the proposal would involve, among other things, the answers
to these questions; (1) Is local currency available in countries that might have capital goods available for export to
other areas? (2) If there are such holdings, would the countries
permit their use for financing exports? (3) Would they be
willing to have the currencies turned over to an international
agency for this purpose? (4) Would financing through this
agency within the country be favored by countries now receiving
loans repayable in local currency from United States programs?
While the whole subject of local currency accumulations
is extremely complex, it should be clearly understood that the
United States does not have unilateral power of decision in
these questions. Although the United States holds title to
large sums in local currencies, these have been acquired only
under specific agreements with foreign countries that their use
would be limited in various specific ways, and generally these
limitations do not permit their use for financing exports. The
reason is clear. Most of these currencies were acquired from the
sale of surplus agricultural commodities of which the united State!
wished to dispose. In order to avoid a drain on their foreign
exchange resources, foreign countries are willing to buy our
agricultural surpluses only if strict limitations are placed upon
the use of the currencies which are paid into our accounts. We
would have to determine the extent to which these countries would
consent to diverting any substantial portion of these currencies
from the financing of development in their own country to
financing exports to other areas.
In addition to this broad general limitation, we do not in
fact hold very large amounts of local currency in industrial
countries which are in a position to export the goods needed by
the less-developed areas. A large part of the European currency
is being used for U.S. governmental expenditures, and loan
programs have been agreed for most of the remainder. By far the
predominant part of the local currencies held are the currencies
of less-developed countries themselves. These currencies could
be utilized within the country for loans, and transferred to an
international agency, if the countries agreed to do so. However,
funds sr>ent within their own borders will not at once add to the
country1s real resources, as do imports of capital and other
'.yooCiS rrom abroad.

336
- 5Even in less-developed areas, a large or preponderant
part of the financing of economic development over a period of
time has been and will be provided from internal savings within
the country. And over time, these savings, effectively invested,
will add to the productive effort of the country. But they do
not have the immediate effect of imports, and frequently
advanced capital equipment can be procured only in a more
industrialized country. The mobilization of large amounts of
local currency under the PL 480 program does provide a fund of
currency usable within the country which the foreign government
might not otherwise easily obtain. Effectively used, and with
due regard to the inflationary consequences of too large an
outlay in addition to the already existing level of public
expenditure and private Investment, this mobilized fund of
currency can be a useful adjunct to internal development programs.
But the immediate increase in real resources which comes from the
PL 480 program is the delivery In the country of the agricultural
commodities themselves, which add to the food and raw material
resources of the recipient country.
The present program of the United States contemplates the
use of most of- these currencies for economic development within
the country which originally acquired our agricultural surpluses.
Loans are being made through United States agencies that are
repayable in local currency on very favorable terms. For
example^ the loans to the Brazilian Economic Development Bank
for the financing of economic development in that country
amount to about $150 million, and are repayable in Brazilian
currency over 40 years. Frequently these loans, which are both
made and repayable in local currency, can be used to facilitate
the operations of the Export Import Bank and the International
Bank by providing for local currency expenditures which are
related to the projects being financed by these institutions.
Broadly speaking, the foreign currency holdings derived
from the sale of agricultural surplus commodities under
P. L. 480 may be used for:
1. Country uses — where the currency is granted or
loaned back to the country from which it was
originally received.
2. United States uses — which includes meeting the
general expenditures of our foreign missions and
personnel and special programs such as educational
and informational activities and the development
of new agricultural markets.
About 70 percent of the present holdings derived from
P.L. k80 are destined for country use and the remaining 30 percent
for United States use. Under the Cooley Amendment there will
In the future be increasing amounts for private American

- 6-

337

^£I e S £? e n t w h i c h w i u r s d u °e the percentages available for
the other uses.
Let us consider first those currencies which are to be
T h ^ ! „ o r g r a n t e d *? ^he country from which they are received.
pmSfnoS 6 ! 5 r ! u S p ? C i f ^ e d i n t h e agreements which generated the
currency and the foreign countries involved have in effect
already secured our agreement that they will not be used for
expenditures which do not have the specific approval of the
We w o u W be
»«otlf»^OVZV^entU
squired by consultation to
ascertain whether they would approve expenditures which would
countrV a lm °n thelr resources for ths benefit of another
4 <,JLnJ:a'ctf one of the specific uses provided for in P.L. 480
is the financing of goods purchased in one country for the use
of another country. Only very small amounts of currencies
generated under the program have to date been agreed upon for
this purpose.
^
^v. 7iI^t5eo2afe of tl>e cur>rencies which are, by agreement,
for United States use, the situation may be somewhat different.
mere the currencies are available for use to meet the general
obligations of the United States in its operations, the foreign
exchange which these countries would otherwise earn is reduced
since we save dollar expenditures by using these currencies. '
in this case the foreign countries might more readily agree to
the transfer of currencies to an international body since they
already expect to lose dollars through their use. In this
situation, however, assuming the United States had ready use
f°? * 5 ® c u r r e n c i e s , t h e y represent an asset as valuable to the
United States as are dollars. Consequently, transferring such
usable currencies to the international body would cost us
dollars, but would not necessarily give the international
organization a convertible asset.
There are in a few countries currencies for United States
use which are in excess of our immediate requirements and will
require many years to use. These countries might agree to
use of the currencies by an international institution but the
usefulness of these currencies is limited because they are for
the most part the currencies of less-developed areas.
A relatively new type of use is for loans through the
Export-Import Bank to private American business to encourage
investment abroad. This program was recently enacted by the
Congress In the Cooley Amendment. If these funds should be provided to the International Development Association, such funds
could not be used to carry out this congressional intent, and
ways would have to be examined to meet this objective.

- 7 -

J 38

For the future one of the principal sources of foreign
currencies will be the repayments on loans made from currencies
received under P. L. 480 and the Mutual Security program. These
will reach considerable magnitude during the middle and later
1960fs and continue over the next 40 years. The loan agreements with the countries permit the repayments to be used for
any expenditures or payments by the United States in the debtor
country. Transfers into other currencies or areas are, however,
subject to mutual agreement from time to time and we have
agreed that whatever use the United States makes of the currency
we will take Into consideration the economic position of the
country concerned. Since these repayments are spread over
many years in the future it Is impossible to predict what the
economic position of the countries will be at the time of
repayment or what other uses for the currencies the United
States may find.
The creation of any new Institution will not by itself
produce any new resources of capital for the less-developed
areas of the free world. Making resources available means
that the production'of some nation must be tapped to provide real
goods, for the use of another nation. On the other hand, we
must remember that mechanisms for the best utilization of capital
resources approach being as important as the capital itself.
As we explore what might be accomplished under the proposed
International Development Association, we know from our earlier
conversations that the Chairman would want us to face all of the
problems realistically and to develop our thinking in terms of
the important objectives.
At the same time, I think that we all agree that our
national interest requires the capacity for bilateral financing.
The Congress has expressed Its faith in bilateral loans payable
in dollars through the Export-Import bank. We must, in our
judgment, continue to implement the Development Loan Fund as
a part of our national policy. Andfor:this we need^the
appropriations which have been included in the President's
Budget. Meanwhile, we shall be exploring and developing the
contributions that can be made through the proposed
International Development Association. This should proceed with
all reasonable diligence.
To make progress in the underdeveloped countries of the
free world is going to require the best resources that can
effectively be brought to bear from the United States and from
other countries — and through the best utilization of our bankable resources, as well as the use of resources in other ways.

33d
- 8 In this statement I have listed many points for further
consideration. I have done so because these points seem to
involve questions that will require a good deal of study. There
are a number of other areas suggested by the Resolution which
deserve exploration. We shall proceed with our further consider
ation of the proposal with diligence.

0O0

- 3 -

xxm
or by any local taxing authority.

_-tU
For purposes of taxation the amount of discount

at which Treasury bills are originally sold by the United States is considered to
be interest. Under Sections h$k (b) and 1221 {$) of the Internal Revenue Code of
195*1 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. Itl8, 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.

-*-

34i

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 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 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 March 27, 1958 , in cash or other immediately available funds

®&
or in a like face amount of Treasury bills maturing

March 21, 1958

Cash

BfiS
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 princi

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

1&J

sssKmgg
TREASURY DEPARTMENT
Washington
K»K RELEASE/ MmM
NEWSPAPERS,
Thursday, March 20, 1958
.

A
I

< 7

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

-m

in exchange for Treasury bills maturing March 27, 1958
, in the amount of
$1,700.152,000 , to be issued on a discount basis under competitive and non-

competitive bidding as hereinafter provided. The bills of this series wil
dated

March 27; 1958 , and will mature June 26, 1958 when the face

amount will be payable without interest. They will be issued in bearer fo

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
one-thirty
closing hour,/tam o'clock p.m., Eastern Standard time, Monday, March 24, 1958

3jg-*

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 ten

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

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

be made on the printed forms and forwarded in the special envelopes which
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 fro

incorporated banks and trust companies and from responsible and recognize

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

TREASURY DEPARTMENT
WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, March 20, 1958.

A-195

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 March 27, 1958*
in the amount of $1,700,152,000, 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 27, 1958,
and will mature June 26, 1958,
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, March 2k. 1958.
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. gi, 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 -

witHte bids must S^S"* 11 * f 0 r ac°ePted tenders In accordance
on March 27 1Q^8
? ^ e ° r 0OlnPleted at the Federal Reserve Bank
or in a llk« ll„'
*? cash.o r o t h e r Mediately available funds
Cash «nri ZZ^lt S f ° ^ n t o f ^easury bills maturing March 27, 1958
adlustSenlf f ? P h « e n d ! r V 1 U r e c e l v e e « u a l tr.ati.nt. Cash
•*££?!£ M - I T 1 1 1 b e ? a d e f o r differences between the par value of
maturing bills accepted in exchange and the issue price of the new
aain f£L1?h2mLderiVed.£rom ^easury bills, whether interest or
fnv exertion =» « , 0 V t h e r dis P°s"ion of the bills, does not have
tfyTreasur^ Siifs K ' a ? dl o s s f r o m t h e sale or other disposition
im,ii£ tt^r 5 llls , d ?es not have any special treatment, as such,
totl£+l I f ^ r n ? i Reve nue Code of 1954. The bills are subject
o? a £ £ 'hi? h ! r " anoe '«. s i ft o r o t h e r e x c l s e taxes, whether Federal
on fhe D r i n c L ^ n ^ T fr °"V a11 taxation ™ w or hereafter imposed
pSssefsions of Jh« iii?!ere|J ! h e r e o f b y any State, or any of the
C BSB a L L D H ^ i t a t e s ' 2rb y a n y l o c a l taxing authority.
bilif S £ «^^„- a ? a t l 0 ? J t J? e amount of discount at which Treasury
bills are originally sold by the United States is considered to
RevenufCode oFl**^1?" T PL"* 1221 & of internal
hlrlSnder ar^ L ^ 5 i » ^ < . a m ° U n h 0 f d l s o o u nt at which bills issued
nereunaer are sold is not considered to accrue until such bills

d e l u d e d ' f ^ ^ r 0^erwise disposed o f r ^ S E n biUs"rl
excluded from consideration as capital assets According th»
owner of Treasury bills (other than life insurance compa^lls>
issued hereunder need Include in his income tax rlturTSnly the
difference between the price paid for such blllsT whether on
r e e f e d ^L°f, ° n s u b s e ^ e n t purchase, and the a^ou^t actually.
ZIZZMI
JL\t ? r UP °? talt o r redemption at maturity during the
taxable year for which the return is made, as ordinary gain or
Treasury Department Circular No. 4l8, Revised, and this
notice, prescribe the terms of the
oOoTreasurybills and eovfSn th»
conditions of their issue. Copies of the^ circular mav bloht^Lrt
from any Federal Reserve Bank or Branch clrcuJ-ar *** b e obtained

344

TREASURY DEPARTMENT
WASHINGTON,
RELEASE AM NEWSPAPERS
Monday, March 2k 1958

A-196

The Treasury Department today made public a
report of monetary gold transactions with foreign
governments, central banks and international institutions for the calendar year 1957• For the
year as a whole, the net inflow of gold into the
United States amounted to $771.6 million, with U. S.
gold purchases at $779.6 million and U. S. sales,
$8#2 million,
A table showing quarterly and annual net transactions for 19^7, by country, is attached.

345
NET UNITED STATES GOLD TRANSACTIONS WITH
FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTION
January 1, 1957 - December 3 1 , 1957
l^.fflj-llions of dollars at 135 per fine troy ounce)
Negative figures represent net sales by the
JJnited States; positive figures, net purchases
First
Quarter
1957

Country
Afghanistan
Argentina .
Belgium . .

-ft

10.0
3.k

Canada • •
Chile • . ,
Denmark . •

5.2

El Salvador
Indonesia .
International
Monetary Fund

-3.5

Iran ....
Netherlands •
Peru
....

•?

Second
Quarter
1957

Third
Quarter
1957

-4.1
10.1

-'4*2
15.0

Total

1*0.2

7.0

299.9

20.0

-.3
5.0

-.1

6.9

-.1

599.7

3.5

-.3
25.0
3.5

15.0
31.5
3.1

21.9
31.5
3.1

1.0
-.3

$3iil.5

-.1

*318.U

-$#6
7$.k
3.k

-3.5
-2.0

-2.0
300.0

Calendar
Year
1957

5.2
2.8
7.0

2.8

Philippines .
Spain . . . .
Uruguay , . .
Vatican City .
All Other . .

Fourth
Quarter
1957

,:>18.9

-.k

m.Q

# - Less than si>50,000
Figures will not necessarily add to totals because of rounding

1.0
-l.k

771.6

^4^
•-- V V

AX^'^^X

~yy"U,y **~\

y.K

yynA^y^^^-

^'/ / 7 :f°~*

ifl

The Treasury Department announced that Leon M. Slier, a Treasury
information officer for the past 15 years, m i l retire from the Government
service on April 1. [ M ^ ^
Assistant to the Secretary for Public Affairs. He recently received
a gift of Savings Bonds at a farewell reception given by his Treasury
associates and friends. He also received a letter from Secretary
Anderson praising him for having "contributed greatly" t© the Treasures
public information operations.

TREASURY DEPARTMENT
WASHINGTON, D.C
IMMEDIATE RELEASE,
Friday, March 21, 1958.

A-197

The Treasury Department announced that
Leon M. Slier, a Treasury information officer for
the past 15 years, will retire from the Government
service on April l.
Mr. Slier a former Texas newspaperman, has
been assistant to Nils A. Lennartson, Assistant
to the Secretary for Public Affairs. He recently
received a gift of Savings Bonds at a farewell
reception given by his Treasury associates and
friends.

He also received a letter from Secretary

Anderson praising him for having "contributed
greatly" to the Treasury's public information operations.

oOo

&*€

y 'tr

RELEASE A. M. tmsmmw9
Tuesday, m r o h 25. 1958.

The Treasury Department announced last evening that the tenders for 11,700,000,000,
or thereabouts, of 91~day Treasury bills t© be dated Haroh 27 and to mature June 26,
1958, which were offered on mreh 20, were opened at the Federal leserve Bante on
Harsh 2k*
The details of this Issue are as follows t
Total applied for - #2,479,667,000
Total accepted
- 1,700,800,000 (includes $331,074,000 entered on
a nonooapetitivs basis and accepted In
full at the average prise shown below)
Range of accepted competitive bids:
High
Low
Average

* 99.704 iquitaleat rate of discount approx. 1.171$ per annua
w
* 99*696
*
« »
«
»
i # 203^ *
*

- 99*100

1.%$$%

(18 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
Chisago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

* 39,893,000
1,^8,532,000
40,023,000
66,671,000
21,810,000
42,166,000
273,735,000
36,380,000
18,688,000
1*0,861,000
32,177,000
218,731.000
^,479,667,000

*
32,067,000
1,031,356,000
24,709,000
59,921,000
20,672,000
30,235,000
221,989,000
34,224,000
18,688,000
36,723,000
21,145,000
166,071.000
1,700,800,000

TOTAL

^ , 7 , / K /-/>«P*

TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS,
Tuesday, March 25, 1958.

N^f^X

A_198

The Treasury Department announced last evening that the tenders for 11,700,000,000,

or thereabouts, of 91-day Treasury bills to be dated March 27 and to mature June 26
1958, which were offered on March 20, were opened at the Federal Reserve Banks on
March 24.
The details of this issue are as follows:
Total applied for - $2,479,667,000
Total accepted
- 1,700,800,000 (includes $331,074,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids:
?igh " 99.704 Equivalent rate of discount approx. 1.171* per annum
^w
- 99.696
»
n
H
it
it
1.203$

Average - 99.700 « «• « « ti 1.189$ " "
(18 percent of the amount bid for at the low price was accepted)
Federal Reserve , Total Total
District

Applied for

Accepted

Boston

• 39,893,000 $ 35,067,000
£ J , T ? ? u,
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dall
t!
,«„rt
San Francisco

TOTAL $2,479,667,000 #1,700,800,000

1,648,532,000
40,023,000
66,671,000
21,810,000
42,166,000
273,735,000
36,380,000
18,688,000
40,861,000
32,177,000
218,731,000

1,031,356,000
24,709,000
59,921,000
20,672,000
30,235,000
221,989,000
34,224,000
18,688,000
36,723,000
21,145,000
166,071^000

J5U
mmmr, MA meat 34. i9sa

h'/ff

—"•"» " • • • " " " » • * » « » • M W ) » i IIMWW 11 ,II„I,I.II nlBniiniKri.wdiiHnmat

Saarstary Aaasrsaa tatfajr appoints Stapltsa G. Haaalag,
Jr. f m timmmtf to Ills A. I*saaar&s#si9 Assistant tofci*sSsantajrjr
< « *ttaila Atf tkim.
la t^ls |@st» Mr. isaatas will aaaaaadl Urn M. BiXme, mkmm
Mti***a»t mttmr Xm ymmtm wits tfc# Itomtrjr IN^artasat, was
asMttaasjsl lift waafe. Mr. Maaalsg will te principal mmimtmrnt %m
Mr. Jbaaaartsaa i» aaiag r#s#oaslbl# far tfca Information aativitiaa
01 tas Treasury iN^iyrtaeuit aad its 14 luMfsana &m*\ miiimm*
M** Haaalag, o*t«4aaily * *«#@*t#r wit* *!** Msw Orleans State**
ia it$w Orlaaa*, Am., aaa aasa PabUc Intonation OttAmmm af tas
Marltiaa asfeiaiatfatla* slaaa IS**, and prior to that is tniorm*tkmm wwrk wits tas y. S. Mmritia* Ommlmmimm mm thm Halts* States
Itarsst mmwim®.

Mr. mjmAm

aetirsriislaa assistant is taw advertising bieinmmm.
®r. tmjmAmm, m raaiaaat mi mmm as&laataa &riirst §VE # , attaaaaa
Tuiaas OsiMnitj at Maw Orlaaas, la.., and latar George WaaMaataa
Ski^arslt? la Wash tag to a. Mm is a a^aaar at tha fetiaaaX Press

cxm*

IMMEDIATE RELEASE,
Monday, March 24, 1Q68.
Treasury Secretary Anderson today appointed
Stephen C. Manning, Jr., as deputy to Nils A.
Lennartson, Assistant to the Secretarv for Public
Affairs.
In this post, Mr. Manning will succeed
Leon M, Slier, whose retirement after 15 years with
the Treasury Department, was announced last weak.
Mr. Manning will be principal assistant to
Mr. Lennartson in being responsible for the information activities of the Treasury Department and
its 14 bureaus and offices.
Mr. Manning, originally a reporter with the
The New Orleans. States" in New Orleans, La,, has
been Public Information Officer of the Maritime
Administration since 1950, and prior to that in
information work with the U. S. Maritime Commission
and the United States Forest Service. Mr, Manning
also has been a copywriter and advertising assistant
in the advertising business.
Mr. Manning, a resident of $539 Abbington Drive,
S.E., attended Tulane University at New Orleans, La ,
and later George Washington University in Washington.
He is a member of the National Press Club.

oOo

- 3 ansnmraf

^ *-• -

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 XSBtt

^ -' ^

Those sub-

Settlement for accepted

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

April 3. 1958

in cash or other immediately available funds

or in a like face amount of Treasury bills maturing

Aprilft.I Q S S

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

SXKXKmx
TREASURY DEPARTMENT
Washington /"T""^*^/ ?~^
2Efi RELEASE/ WSMM NEWSPAPERS,
Thursday. MMM* «7, i«ffl .
The Treasury Department, by this public notice, invites tenders for
*-*t7QQ,eQP,QQQ > or thereabouts, of 91 -day Treasury bills, for cash and
000
gg
in exchange for Treasury bills maturing Awf1 « ,«,» in the amount of
$_liL700^i2000__, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be
dated

April ysfl , and will mature ,Tulv

a 1<MM 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 ^^^ceived at Federal Reserve Banks and Branches up to the
closing hour,/*W8 o'clock p.m., Eastern Standard time, Monday. March 51 l958
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., 90.925. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders
except for their own account. Tenders will be received without deposit from
incorporated banks and trust companies and from responsible and recognized dealers
in investment securities. Tenders from others must be accompanied by payment of

TREASURY DEPARTMENT
B8gi;g*j.M.^^TMT«TM^Jju^ii.^^,'kiiWX':,4ii^l.'mTlHIMa

o r\

***>

WASHINGTON. D.C.
RELEASE A.M. NEWSPAPERS,
Thursday, March 27, 1958.

A-200

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 April 3, 1958,
in the amount of $1,700,3^0,000, 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 3, 1958,
and will mature July 3, 1958,
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 31, 1958.
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 2rpercent 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

- 2wltS the bids %L+ settlement for accepted tenders in accordance
on Anrli \ I Q ^ b e **** o r C0JBPleted at the Federal Reserve Bank
i CaSn or other
or i n V i ^ 11 '
?
immediately available funds
c**\\ «n* I u
fmount of Treasury bills maturing April 3, 1958
X h
tenders w 1 1 1
ad?n«t^? ° f??\
receive equal treatment! Cash
be
6 for
1
1
1
S X M ^
f^
differences between the par value of
maturing bills accepted in exchange and the issue price of the new
»»*« lhQ income derived from Treasury bills, whether interest or
Sale or
fnZ Sl^J
°ther disposition of the bills, does not have
of Treasury hi if 2 51J25* a n d l 0 S S f ^ o a ^ e sale or other disposition
iinnl£ tll^l o ± l l s does not have any special treatment, as such,
^ d ^ . ^ e I n t e r n a J Avenue Code of 1954. The bills are subject
r£ 2 ^ a ^ e ' ^eritance, gift or other excise taxes, whether Federal
™ fit ' 4 * a ? e e x e m P t f r o m all taxation now or hereafter imposed
«««2J!o? 01 2 a 2L or i n t e r e s t thereof by any State, or any of the
For n ^ n ^ L 0 ^ ^ 6 U ^ t 6 d 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

^eVen^r^; «i^S?iiS?£ti0nS 454 ib)

and 1221 (5) of the

Internal

5 f ! ! S S ^ tL l ^
*te mm>imt of discount at which bills issued
Bol
i S n o t conside
*STS?S
I
5
red to accrue until such bills
a
deemed
r
^i»^%
. ° otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly, the
owner of Treasury bills (other than life insurance companies)
d ? ? ^ l « ! r ^ e r ne ?2 i n c l u d e i n h^ i^ome tax return only the
ttiJi\ti °? b e t w e e n t h e P r i c e paid for such bills, whether on
£S5iSS iJJS8 ° r ° n su ? se( l uent Purchase, and the amount actuallyreceived either upon sale or redemption at maturity during the
taxable year for which the return is made, as ordiLr^gain or
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 maySCI obtained
from any Federal Reserve Bank or Branch.
ootamed
0O0

(In thousands of dollars)
• Dec. 31,
;
1957

• Oct. 11,
;
1957

•

LIABILITIES
Deposits of individuals, partnerships, and corporations;
Demand
58,715,522
Time
29,138,727
Deposits of U. S. Government
2,**12,867
Postal savings deposits
11,270
Deposits of States and political
subdivisions
7.878 ,315
Deposits of banks
9.^3»%6
Other deposits (certified and
cashiers* checks, etc.)
1.796,17**
Total deposits
109,^36,311
Bills payable, rediscounts, and
other liabilities for borrowed
money
38,32**
Other liabilities
1,95^.788
Total liabilities, excluding
capital accounts
lll,**29,*i-23
CiiPITAL ACCOUNTS
Capital stocks
Preferred
.#
3,760
Common.
2,802,**53
Total
2,806.213"
Surplus
4,41b, 42b
Undivided profits
1,618,857
Reserves
251,721
Total surplus, profits and
reserves
6,287.00**
Total capital accounts
9,093,217
Total liabilities and
capital accounts
120,522,6*40
RATIOS:
Percent
U. S.Gov't securities to total assets 26.00
Loans & discounts to total assets... **1.90
Capital accounts to total deposits.. 8. 31

Dec. 31,
;
1956

56,**10,**93
28,737.08**
2,39^.655
11,28**

59.582,3^
26,270,576
2,31*7.519
12,751

Increase or decrease
Increase or decrease
since Dec. 31. 195$
since Oct. 11, 1957
{Percent
Amount
jpercents
Amount

2305,029
*K>1,6**3
18,212
-1^

**.09
l.*JO
.76
-.12

~B66,B26
2,868,151
65.3^8
-l,*»8l

~1.**5
10.92
2.78
-11.61

-366,66**

-3.72

*K).88
0 2

-167.9^2
1,9**1,**88

-8.55
TUT

-981,897 -96.2**
~**1.988 ~2.10

19.670
238«**15

105.**5

2,199.573

2.01

7,176,372 7»k67M3 701,9^3 9.78 **10,902 5.50
8,*K>3,799
9.850,100
1,079.637
12.85
1.27^991
10**,*JO8,678

1,020,221
1.996,776
107.^25,675

1,96**, 116
107,^,823

,18,65**
1,716,373

521,183
5.027.633

109.229,850

**,003,7**8

3.775
3.808
2,768,755
2,63**300
2,772,530
2,638,108
^.320,92? k,X3ii.7^3
1,730.206
1,**39.937
238,52*1
255,30k

-15

6,289,657
9.062,187

33.6IJ
95.^9
-Ul.349
13.197

5.83**,02**
8,472,132

-2,653
31,030

Il6,*t87.862 U7.7Q1.982
Percent
Percent
26.53
26.92
**2.83
**0.99
s.GS
7*88

U,03**,778

3.73

~.*K)
1.22
1.21
2.21

«S.kk
_5.53
-.0^
,3**
3.U6

-**8
168,153
168,165
2t7.6**3
178,920

-1.26

**52,980
m
THx^5

7»76
7.33

2,820.658

2.I10

UOTBs Minus sign denotes decease.

6.38
6.71
12.^3
-l.*J0

CO
en
CTj

Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 3 L 1957. October 11, 1957 and December 3 1 , 1956
(in thousands of dollars)
* Dec. 31,
: 1957
number of banks. **,627

Oct. 11,
1957
**,6**1

Dec. 3 1 ,
1956
**,659

iT3srH-

ffi:.V ***}

%^;

-1**
>**.

ASSETS
Commercial and industrial loans.... 22,20S,6**7
Loans on real estate
12,**80,5**2
All other loans, including overdrafts
16,777.509
Total gross loans
51,**66,69S
Less valuation reserves
96**,**21
Net loans
50,502,277
U, S. Government securities:
Direct obligations
31,335,767
Obligations fully guaranteed
2,309
Total U. S. securities
31,338,076
Obligations of States and political subdivisions
7,**95,S7S
Other bonds, notes and debentures..
1,880,706
Corporate stocks, including stocks
of Federal Reserve banks
267,0**9
Total securities
*40,981,709
Total loans and securities.... 91,**83,98o
Currency and coin
1,734,533
Reserve with Federal Reserve banks. 11,**79,820
Balances with other banks
13,650,78!
Total cash, balances with other
banks, Including reserve balances and cash items in process of collection
26,865,13**
Other assets
2,173,520
Total assets
120,522,6*40

mmtlmfmm

Increase or decrease Increase or d e c r e a s e ^
since Oct. 11, 1957s since Dec.*31. 195fettra
1 Amount
sPercent; Amount
:Percent

21,875.673
12,307,3^1

21,1*16,983
12,065,9^5

332,97**
173.201

1,061,66**
**l**,597

16,615,151
50,798,165
902,589
^9,895,576

15.868,9**6
*+9,osi,87**
48,248,332

162,358
668,5
6l,8_
606,701

2.253.V*5

30,90**,269
2.531
30,906,800

31,675,780
^.305
31,680,085

*+31,**98
-222
**31*276

l.*40
-8.77
l.*40

-3^.013
- 1.996
*31*2.009

-1.07
-1*6.36
-1.08

7.1*52,6**3
1.631,550

7.025,220
1.561.566

^3.235
2^*9.156

.58
15.27

**70,658
319,1*10

6.70

251,**9**
40,242,487"
90.138,063
1,307,011
11.851,510
11,0**9,877

236,521
^,503,392
88,751,72**
1,706,507
11,**67,0**8
13.908,9**2

15.555
739,222
1,3**5.923
427.522
-371.690
2.600.QO**

6.19

2**,208,398
2,141,1*01
116,**87,862

27.082,*497
1,867,761
117,701.982

2,656,736
32,119
**,03**>778

10.97
1.50
3.**6

30.528
1.84-^M
1.49 ^^Ba>-gfe
28,026
32.71
12,772
-3.1**
-258,161
23.5^

-217.363
305.759
2,8Ju^

5.02
3*kk

20.****

12.91
1.18
1.64
.11
•1.86

££

359
securities increased $74,000,000 to $1,800,000,000. 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) of over
$9,500,000,000 increased about one-half percent since October. The percentage
of net loans and discounts to total assets on December 31, 1957 was 41.90 in
comparison with 42.83 in October and 40.99 in December 1956•
Investments of the banks in United States Government obligations on
December 31 aggregated $31,300,000,000 (including $2,300,000 guaranteed obligations), an increase of $430,000,000 in the period. These investments were
26.00 percent of total assets. Other bonds, stocks and securities of
$9,640,000,000, which included obligations of States and political subdivisions
of $7,500,000,000, were $300,000,000 more than in October. Total securities held
amounting to nearly $41,000,000,000 increased $740,000,000.
Cash of $1,735,000,000, reserve with Federal Reserve banks of $11,480,000,000,
and balances with other banks (including cash items in process of collection) of
$13,650,000,000, a total of $26,865,000,000, showed an increase of $2,650,000,000.
Borrowed money of $38,300,000 was down $980,000,000 since October.
The capital stock of the banks on December 31 was $2,806,000,000, including
$3,760,000 of preferred stock. Surplus was $4,4l6,000,000, undivided profits
$1,619,000,000 and capital reserves $252,000,000, or a total of $6,287,000,000.
Total capital accounts of $9,093,000,000, which were 8.31 percent of total
deposits, were $31,000,000 more than in October when they were 8.68 percent of
total deposits.

4^1

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE A. M. NEWSPAPERS,
Monday, March 31, 1958.

359
^

A-201

The total assets of national banks on December 31, 1957 amounted to
$120,500,000,000, it was announced today by Comptroller of the Currency Ray M.
Gidney. The returns covered the 4,627 active national banks in the United
States and possessions. The assets were $4,000,000,000 more than the amount
reported by the 4,64l active banks on October 11, 1957, the date of the
previous call.
The deposits of the banks on December 31 were $109,400,000,000, an increase
of $5,000,000,000 since October. Included in the recent deposit figures were

demand deposits of individuals, partnerships, and corporations of $58,700,000,00
which increased $2,300,000,000, and ttae deposits of individuals, partnerships,
and corporations of $29,100,000,000, up $400,000,000. Deposits of the United

States Government of $2,400,000,000 increased $18,000,000 in the period; deposits
of States and political subdivisions of $7,900,000,000 increased $700,000,000,
and deposits of banks amounting to $9,500,000,000 showed an increase of
$1,100,000,000. Postal savings were nearly $11,300,000 and certified and
cashiers* checks, etc., were $1,800,000,000.
Net loans and discounts on December 31 were $50,500,000,000, an increase of
$600,000,000 since October. Commercial and industrial loans of $22,200,000,000
increased $330,000,000, and loans on real estate of $12,480,000,000 were up
$170,000,000. Retail automobile installment loans increased $16,300,000 to more
than $3,900,000,000. Other types of retail instalment loans of $1,500,000,000
increased $25,300,000. loans to brokers and dealers in securities, and other
loans for the purpose of purchasing or carrying stocks, bonds, and other

TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE A. M. NEWSPAPERS,
Monday, March 3 1 , 1958.

"0 U

_201

The total assets of national banks on December 31, 1957 amounted to
$120,500,000,000, it was announced today by Comptroller of the Currency Ray H.
Gidney. The returns covered the 4,627 active national banks in the United
States and possessions. The assets were $4,000,000,000 more than the amount
reported by the **,64l active banks on October 11, 1957, the date of the
previous call.
The deposits of the banks on December 31 were $109,400,000,000, an increase
of $5,000,000,000 since October. Included in the recent deposit figures were

demand deposits of individuals, partnerships, and corporations of $58,700,000,0

which increased $2,300,000,000, and time deposits of individuals, partnerships,
and corporations of $29,100,000,000, up $400,000,000. Deposits of the United

States Government of $2,400,000,000 increased $18,000,000 in the period; deposi
of States and political subdivisions of $7,900,000,000 increased $700,000,000,
and deposits of banks amounting to $9,500,000,000 showed an increase of
$1,100,000,000. Postal savings were nearly $11,300,000 and certified and
cashiers' checks, etc., were $1,800,000,000,
Net loans and discounts on December 31 were $50,500,000,000, an increase of
$600,000,000 since October. Commercial and industrial loans of $22,200,000,000
increased $330,000,000, and loans on real estate of $12,480,000,000 were up

$170,000,000. Retail automobile installment loans increased $16,300,000 to more
than $3,900,000,000. Other types of retail installment loans of $1,500,000,000
increased $25,300,000. Loans to brokers and dealers in securities, and other
loans for the purpose of purchasing or carrying stocks, bonds, and other

T6i
- 2 securities increased $7^,000,000 to $1,800,000,000. 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) of over
$9,500,000,000 increased about one-half percent since October. The percentage
of net loans and ^discounts to total assets on December 31, 1957 was 41.90 in
comparison with 42.83 in October and 40.99 In December 1956.
Investments of the banks in United States Government obligations on
December 31 aggregated $31,300,000,000 (including $2,300,000 guaranteed obligations), an increase of $430,000,000 in the period. These investments were
26.00 percent of total assets. Other bonds, stocks and securities of
$9,640,000,000, which included obligations of States and political subdivisions
of $7,500,000,000, were $300,000,000 more than in October. Total securities held
amounting to nearly $41,000,000,000 increased $740,000,000.
Cash of $1,735,000,000, reserve with Federal Reserve banks of $11,480,000,000,
and balances with other banks (including cash items in process of collection) of
$13,650,000,000, a total of $26,865,000,000, showed an increase of $2,650,000,000.
Borrowed money of $38,300,000 was down $980,000,000 since October.
The capital stock of the banks on December 31 was $2,806,000,000, including
$3,760,000 of preferred stock. Surplus was $4,4l6,000,000, undivided profits
$1,619,000,000 and capital reserves $252,000,000, or a total of $6,287,000,000.
Total capital accounts of $9,093,000,000, which were 8.31 percent of total
deposits, were $31,000,000 more than in October when they were 8.68 percent of
total deposits.

Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 31, 1957, October 11, 1957 and December 31, 1956
(in thousands of dollars)
Dec. 31,
1957
Jumber of banks.*..

**,627

ASSETS
Dommercial and industrial loans.... 22,208,647
Loans on real estate
12,480,542
All other loans, including overtops 16,777.509
Total gross loans.
,,
Less valuation reserves
Net loans.
S.
Government
securities;
u.
Direct obligations
Obligations fully guaranteed
Total U. S. securities
Obligations of States and polltical subdivisions
Other bonds, notes and debentures..
Corporate stocks, including stocks
of Federal Reserve banks...

Oct. 11,
1957
4,64l

Dec. 31,
1956
4,659

Increase or decrease Increase or decrease
since Oct. 11. 1957. since Dec. 31, 1956
* Amount
spercent J Amount
••Percent
••14

-32

21,875.673
12,307,3^1

21,146,983
12,065.9^5

332,97**
173.201

1.52
1.41

1,061,664
4l4,597

16,615,151
50,798,165
902,589
% , 895,576"

15.868.9**6
49,081,874
833,5**2
1
*ST2!*8,332

162,358

51,466,698
964,421
50,502,277

908,563

668,533
61,832
606,701

.98
1.32
6.85

1.22

31,335,767
2,309
31,338,076

30.90*+, 269
2,531
30,906,800

31,675,780
^ **.3Q5
31,680,085

**31,**98
-222
431,276

l.*K>
-8.77
1.40

7,**95,878
1,880,706

7.**52,643
1,631,550

7,025,220
1,561,566

)#*235
^•9,156

.58
15.27

**70,658
319a**0

251.^9**
*40,242,487
90,138,063
-1,307,011
11,851,510
11,049,877

236,521
40,503*392
88, 75lTf24
1.706,507
ii,467fO**S
13.908,942

427*522
-371*690
2i60Q#§04

6.19
1.84
1.^9
32.71
-3.1U
23.51*

30,528
478,317
2,732^52
28,02
12,772
-258,161

27,082,497
1,867,761
117,701.982

2,656,736
32,119
4,034,778

267,049
. ,

Total securities
*40,981,709
Total loans and securities... *. 91,483,986
Currency and coin.
.# 1,734,533
Reserve with Federal Reserve banks. 11,479,820
Balances
other
banks with other
« 13,650,78!
Totalwith
cash,
balances
banks, Including reserve balances and cash items in process of collection
26,865,134 24,208,398
Other assets
2,173.520
2,l4l,i#l
Total assets
120,522,6*40 116,487,862

T>9*&2

••

10.97
1.50
3.**6

2,384,82**
130,879
2,253,9W

5.02

3.kk
5.73
4.86
15.70
~X67

-3*10,013
-1.07
- 1.996 -**6.36
-3^2,009 -1.08
6.70
20.44
12.91
1.18

^1——11 mi' ~ 11un *) 1

•

*•••-• n i l

-217.363
305.759
2,820,658

T5T^
2.*40

(in thousands of dollars)
Dec. 31
1957

Oct. 11,
1957

Dec. 31»
1956

Increase or decrease t Increase or decrease
since Oct^ 11, 1957 s since Dec. 31. 1956 ,
Amount
{Percent
Amount
{percentj

LIABILITIES
Deposits of individuals, partnerships, and corporations}
Demand...
58,715,522
56,**10,U93 59,582,3^8
Time
29,138,727
28,737,084 26,270,576
Deposits of U. S. Government.
2,412,867
2,394,655
2,347,519
Postal savings deposits.^..........
11,270
11,284
12,751
Deposits of States and political
7,176,372
7.1*67.J*13
subdivisions.............*......
7,878,315
8,*403,799
9,850,100
Deposits of banks...
9,**83*^36
Other deposits (certified and
1,27**, 991 1,96**, 116
cashiers* checks, etc.)
1,796,17** 104^08,678 107,^,823
Total deposits....
•«...» 109,436$311
Bills payable, rediscounts, and
other liabilities for borrowed
money
38.32**
1,020,221
,18,654
Other liabilities
1,95^,788
1,996,776
1,716,373
107,**25,675 109,229,850
Total liabilities, excluding
capital account s........... 111,429.^23
CAPITAL ACCOUNTS
3,808
Capital stock}
2,63**,300
Preferred
3.760
3,775
2,772,530
2,638,108
Common.
2,802,453
2,768,755
n
4,138,783
+T3^T927
Total
2,806.213""
1.^39,937
1,730,206
SUTDIUS
4,41b, 42b
255.30k
238,524
Undivided profits
1,618,857
Reserves
..«•
251»721
Total eurnlus, profits and
reserves*
6,287,00**
6,289,657
5,83**,02**
Total capital accounts
9,093.217 Il6,*i87,862
9,062,187 117.701,982
8,472,132"
Total liabilities and
capital accounts
120,522,6*40
RATIOS:
percent
Percent
Percent
U.S.Gov't
securities
to
total
assets
26.00
26.53
26.92
Capital
Loans & pccounts
discountstotototal
totaldeposits..
assets... 4l«90
8.31
42.83
8.68
*K).99
7.88

2305,029
401,643
18,2X2
-14
701,9^3
1,079,637
521,183
5.027,633

-.12
9.78
12.85

S669B26
2,868.151
65.3^8
-1,481

-l.**5
10.92
2.78
-11.61

410,902
-366,664

5.50
-3.72

*iO. 88
02"

-167,9^2
"l,94l,488

-8.55
1.81

**.09

i.4o
.76

-981,897 -96.24
-41,988 -2.10
**,003,7^8

3.73

19,670
238,415
2,199.573

105.**5
13.89
2.01
C
CD
-1.26
6.38

-15
-.**0
33,698
1.22
33,683
1.21
95.499 " 2 ^ 1
-111,349 «*6.****
13.197
5.53

-48
168,153
168,105
2f7.643
178,920
-3,583

oTIT
12.1*3
-1.^40

-.04

7.76
7.33
2.**0

-2.653
31.030

~3F

**52,9S0
621,085

**.03^.778

3*k6

2,820,658

NOTE; Minus sign denotes detrease.

Treas.
HJ — —

U.S. Trp^—-

Full text of Press Releases of the United States Department of the Treasury : Volume 112

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