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U-S• /feas,Lutms Jmku?T • — ! • I'U'inii .. ,.! . .1111 ., mmnu^mlS^immmJSSSmSSff .1.. 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 - mm 2 percent of the face amount of Treasury bills applied for, unless the tenders a accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal 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 9 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- M — 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 m m amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour,/fcfifc£ o'clock p.m., Eastern Standard time, Monday, January 6, 1958 SEJ l 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 c; / 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. 8 J / mmr Umm%*wy mi %m trmm%m ^XJUm B. isUi mm 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 10 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 I $ 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. A /1 f 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. 14 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^ 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by 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. 18 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 .<,y^ iv.;-.v\lv' \ \%mi.' ,. •-* ,4*^ c 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. 21 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 3M 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. 25 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 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 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 - 27 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. 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 >er of banks•••• 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. 30 • * - 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 31 /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 34 - 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 36 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. 38 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- 40 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 41 /V 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 n * « w n 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 3 * 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 " " " " 2 -»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 need include in his income tax return only the difference between the price pai for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copie of the circular may be obtained from any Federal Reserve Bank or Branch. - 2 - v 44 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- 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 25, 1958 , in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 25, 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, • *y TREASURY DEPARTMENT Washington Li / ' ~ / _J A. M. 3XE RELEASE/ M0RKXK5 NEWSPAPERS, Tuesday, January 14, 1958 m 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 25. 1958 , in the amount of $ 1,600,748,000 * to be issued on a discount basis under competitive and nonfee competitive bidding as hereinafter provided. The bills of this series will be dated January 25, 1958 5 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 be made on the printed forms and forwarded in the special envelopes which will b supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized deal in investment securities. Tenders from others must be accompanied by payment of RELEASE 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 $5,215 million. Details by Federal Reserve Districts as to subscriptions and allotments will be announced when final reports are received from the Federal Reserve Banks. . £<y,if Ki ^*~*"-^->K. ;g^~vvu-v^ v. : / '.. ,-;' lUZs^y^ ..... '^-w^"**^ /\- _/ 3 48 fy\ ^.M-<r~-orW<m-*~-*w'••• •' Treasury Secretary Anderson today submitted to the Congress draft legislation^which if enacted would provide a temporary Increase in the debt limit ,©*-$^-=*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 4 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 ^ W '^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"\», Z7 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 3A 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 I 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 c ' 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 y §o *) *' / > °' 4 v_, f y / 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 K fM 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: 65 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 / '/ ^ 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 $e sjsjs^Mssj^hsli tsdsi We> s^Hssid %e> e)i~Ni ts> pexttnl lttand of mm. »e esjaii sjot b e able te mMmttmmr %bm J3~sriM ^~s>Jejsjsjfc; est Sjsj^h n *£*W* djiyei H m U t e e la the tsissei hea-tal-te t~* ***-**»*• ae&g- 3*s&as_wssW sassaM •^"*^-» n^^i»^^r ^ ^ » ^^w^p^p^ *^-^ * ~ B ^ w ^ ^^•^•••M ifiisjtuT'fffas; eei tana y^mm$tm&mw ^r ^ ^ n s | ^ ~ B W ^ M K _ p '••MHS-^I^^WS* *£Am* jsssjMB^sse) mi fn JIH^JSJ nils tetikesesjrlisjt d^gitHi%f/ sss§ efttfr Use. sjesjaHsej. mm 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/ 7C 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.) 77 -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 84 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- 87 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- 83 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. 89 TABLE 1 3TOT LIMITATION . T 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 v / 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. $275,000,000,000 (b) TABLE 2 QQ y y MARKETABLE MATURITIES JANUARY 1958 THROUGH DECEMBER 1958 ^ (In millions of dollars) Maturity date 1958 Security (issue date) Total amount outstanding 12/31/57 Feb. 11+ 3-3/8$ 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 T 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. $Bil. % Monthly Averages. Fiscal 1948-58 Operating Cash Balance JJISEI Operating Cash Balance as % of Budget Expenditures iPP| V w*$ 1L Budget Expendit 1948 '52 '55 '58 Fiscal Years Otfiie irf \)w Scire I at > uf (he Ireasuiy '52 55 '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* 8- A All Other S Investors 4 4.4 4.2 — 1.8 1.4 0 Calla ble 2.4 f|j| 1 .4 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* 20 ~~ 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. JulyDec. Jan.June JulyDec. 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 57 '58 '59 CQ Chart 6 BUDGET EXPENDITURES-SEMIANNUAL Fiscal Years !955-'59 $Bil. 25 33.4: :36.9: 33.8: :36.6: 33.1 36.2 33.0 :35.6 3I.6-: JulyDec. Jan.June JulyDec. Jan.June JulyDee. Jan.June JulyDec. Jan.June JulyDec. — 1955—' Office of the Secnuvy of the toasury v —1956—' *—1957—' v —1958—' v :37.0 Jan.June —1959—' y Chart 7 , BUDGET RECEIPTS-SEMIANNUAL Fiscal Years 1955-59 "$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$ w n 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 I 1 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 » « » n „ 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. 07 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 X! 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 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 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 17 TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Tuesday, January 2 1 . 1958. y A-144 LP 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 . , m 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 1Q ^r 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. m 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 1 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 1 Whole milk, fresh or sour....... Calendar Year 3,000,000 Gallon 2 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 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 1,200,000 or more butterfat < 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 .. - '' 2 percent of the face amount of Treasury bills applied for, unless the tenders a accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any o all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or les without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 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, 1 TREASURY DEPARTMENT Washington /" / ( - / A. M. Mm RELEASE/ MSRMNS NEWSPAPERS, Thursday, January 25, 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 50, 1958 , in the amount of --^ #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 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, (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. x 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 $4*7 billion. >N I want to announce here today that very vigorous payroll savings and "Share in America" sales campaigns will be conducted within the next few months in *ymmmmj*\\\m\ metropolitan em*e*«and asase 200 w^a«e^wi#efei-4-»tH We will have more details on A this In the near future. A We are gratified that we have National Mrector James F. Stiles, Jr. to take general charge of this stepped~up program. We know he will provide inspiring leadership. ^ W* Stiles has a very challenging job. The Savings Bonds program is an activity of top importance not only to sound Qovernment financing and a healthy debt structure, but 128 ** 2 * also to the health of our free economy. And It is peculiarly important at this moment in world affairs. \N In these days of swift-moving Mspace-age" developments, every Savings Bonds purchase helps provide our country with the strengthened resources on which so much depends# not only for us but for future generations of Americans. We must never forget that real capital cannot be created by any form of monetary magic — it must be saved! Individual savings therefore are one of the major responsibilities of citizenship under present world conditions. Every American who buys a Savings Bond can truly says rl am helping to provide for my own future, and I am adding to the strength of my country, both military and economic. I am putting real meaning into the slogan, ''Share in America. +* • v The Treasury is depending on this year's stepped-up campaigns for payroll savings, and the "Share in America" bond campaigns, to produce telling results* All of us are confident that the bond program is a whole will make fine progress under the . direction of Mr. Stiles as the P H W S « * » new National Director. " ~L t- y plans of the Savings Bonds staff and volunteer organization for vigorous payroll savings and "share in America" sales campaigns WLLJ J^f'liife in 33 metropolitan centers and 200 other cities. I«_l-MM$i officials0mm A 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 s ? 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 m 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 L^ "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* 1 ^ 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 $% or sore under the new procedures would he placed m the list and articles included la the classification incurring no such average decrease would not be placed on the H a t , As a result of investigations of presentations made following the publication of the preliminary list, | eonraoditgr numbers act included on the preliminary list are covered on the final list in fall sad 6 commodity numbers not on the preliminary list have at least seas but not all items covered by the commodity number Included on the final list. Also, the final list includes additional items not on the preliminary list for 22 ccfflBodity numbers *hieh were covered la part on the preliminary Ust* 1 OQ "i ' -3of chwagm* in definition which will eetwdt as expert value to be determined more readily are alee contained la section 2. Following the approval ef the Simplification Act ef Iff* ea August 2, L956, with Its p r o v i d e tmr m excepted X$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 i ^.^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 7 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 n 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 l4 '~ 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- .. ., . • • t 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 oOo C\ SS" in *rr-- CL. o t — o O C£ C_ l'J >. in ; CVJ ar UJ -c. h-* c-; • < »~w UJ Q» ">-. -^z ZDCO •~D CO i-U -r*"" * 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 - 1 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 W 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. 7. 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 55 % 58 170 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 44 42 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 24 4.6 l'/2% ENt. Oct. I 24 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. JulyDec. Jan.June ~~ 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 57 '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 's 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.- y 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. ti 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 w • R " n 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)°' X ' ^'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 $381*,873,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: High - 99»U50 Equivalent rate of discount approx. 2.116% per annum Low - 99*1*1*2 » « n e n Average - 99.1*1*3 w 2.207$ « « » « 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 \j 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 ha 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 oa 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 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 $1,000,0 (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 be made on the printed forms and forwarded in the special envelopes which will b supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized deal in investment securities. Tenders from others must be accompanied by payment of RELEASE 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.-. 1 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 6 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 ce e 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 ... • 2 - 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 — 1 11.73 ... 11.73 — (If exchanged for 3ifs) is X QO RELEASE A. M. HMSPAFEBS, Tuesday, February 4 t 1958. 1 mJ C 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$ w H 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 v/ 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 w w w w » 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 - 2 percent of the face amount of Treasury bills applied for, unless the tenders a accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any o all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or les without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on 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 . f/ 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. It 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 mm ($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 - 60 ^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 — is 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 ^7 9.8 Federal Reserve Banks* 4.4 Public 4.2 Callable 2.4 mm 1.4 1.8 • 11 24 '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. In 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 . y< U - 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///// 40 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 9 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as m a y be held by the Secretary of the Treasury), "shall not exceed in the 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 thfs 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 y 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 m a y 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 $ 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 r c <ft*c*M-v y* 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 \1myPmz million of the tkm imemm iavolvod 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 „1U mr* M'Sewts.*** %# A$r* IWot^B.**** $10,576 5S2 1,282 aa? in 273 lit $0 £pr« 15 Bills. * *. I/?: Apr* M Oti****** iriifa •sB. ,ai§ «»i» a «i*,m $x,m iHMiriim»rmtjmiii»iiii«»imMi. MmtMmt* win 1st mmwmmi t 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 25 323 60 Apr. 15 Bills 1,751 679 371 91 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 w * • * « 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- mitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 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 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 $1,000,0 (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 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 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 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 16 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 43 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 16 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 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. w. 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, 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: 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 7A 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 for jgscch&aig© '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 25 529 54 370 91 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 A 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 25 WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, Friday, February 14, 1958. A. 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 Cy 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&* n\ 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 n oqQ (S 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 Ec * u i v a l e n t » t e of discount approx. 1.654* per annum e . . , l m % „ m (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. Their foreign trade and interfinaneial positions mr* thus closely/related, ©a- dining trade, actual or prospective, may cause exchange problems, ©a the other band] internal financial diffi- 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 26 . 6 m 2 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 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. y - 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 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. ?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- mitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 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, TREASURY DEPARTMENT Washington / '• I / / 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 M U/M t.f,,( y I'• •- a/- n y.-i \'.w&'\: 7y^'y ? U f 'Lrjv« ^nymi(JUu M iloJ .„, .. . ux'-" ! -j; n ^ / 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. 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. 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 it (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 n n a n a 1.226$ n °- 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, n 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 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 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. V 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 tt *t » " J 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 y TOTAL " f 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 - 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by 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 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 '_ t f" 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 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 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 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 $28 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. 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 n 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 w * " X * 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 1 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 n « « » u 1.5322 M » (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 "* * c ±2 w..hin«t«i M ^ - 10 > 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 * 2 percent of the face amount of Treasury bills applied for, unless the tenders a accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any o all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or les without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on 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 91 -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 m m amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the one-thirty closing hour, <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 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 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» Technical discussions are scheduled to b e 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. Ulf bases for agreement are (hy> 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 4 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 34 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 22 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 22 Whole milk, fresh or sour Calendar Year 3,000,000 Gallon 34 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 y 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 [imXvdmm B29,9779mo entered ©a a mnempmtltivm basis and accepted in full at the average prise shown below) 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 w 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- 35 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 O m 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 -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 « n u n u 1.%$$% n (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 m*mm aaa ©aaa m copy writer aad 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 ^ -' ^ 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 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 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 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 1 -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^—-