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fre&% HI 10 V.i>7 LtteL-lX&JitXfml POOM' 5030 JUN 1 * ^72 - 3- IBBfc n 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State., b are exempt from all taxation now or hereafter imposed on the principal or inter 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 whic Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am of discount at which bills issued hereunder are sold is not considered to accru until such bills are sold, redeemed or otherwise disposed of, and such bills ar eluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in hi income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the retur 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 - 1 _-E-KXt_3£X__X_g_^ 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 pe cent of the face amount of Treasury bills applied for, unless the tenders are acc panied 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 fin Subject to these reservations, noncompetitive tenders for $200,000 or less for th additional bills dated January 8, 1959 } (91 days remaining until maturity date on July 9, 1959 ) and noncompetitive tenders for $50,000 or less for the ____; 182-day bills without stated price from any one bidder will be accepted in full a the average price (in three decimals) of accepted competitive bids for the respec tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 9, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing April 9. 1959 . 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 2 TREASURY DEPARTMENT Washington A ^ f^- K/ .^~- RELEASE A.M. NEWSPAPERS, Thursday, April 2, 1959 P£ The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts, for cash and in exchange for Treasury bills maturing of $ 1,599,557,000 91 April 9, 1959 , in the amount , as follows: -day bills, (to maturity date) for $ 1,200,000,000 , or thereabouts, representing an additional amount of bills dated to mature July 9, 1959 182 -day bills, for $ 400,000,000 April 9, 1959 p_5 January 8, 1959 , and , and to be freely interchangeable therewith , or thereabouts, to be dated , and to mature October 8, 1959 " pEEJ * The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 6, 1959 im • • 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 TREASURY DEPARTMENT ; WASHINGTON, D.C. RELEASE A.M. NEWSPAPERS, Thursday, April 2, 1959. A-488 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,600,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 9, 1959, In the amount of $1,599,337,000, as follows: 91-day bills, (to maturity date) for $1,200,000,000, or thereabouts, representing an additional amount of bills dated January 8, 1959, and to mature July 9, 1959, and to be freely interchangeable therewith. 182-day bills, for $400,000,000, or thereabouts, to be dated April 9, 1959, and to mature October 8, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be Issued in bearer form only, and In denominations of $1,000. $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 6, 1959. 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 application1 therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from' incorporated banks and' -trust companies and from responsible and recognized dealers In investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated January 8, 1959, (91 days remaining until maturity date on July g, 1959) and noncompetitive tenders for $50,000 or less for the lo2~day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 9, 1959, In cash or other Immediately available funds or in a like face amount of Treasury bills maturing April 9, 1959. 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 oOo or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their Reserveissue. Bank or Copies Branch. of the circular may be obtained from any Federal A RIIJSASB A. M. HB*3i_PS!_, ; / a Tu»«tey, April 7f im. the treasury Dopartaoat annmtac^ laat evening that the tenders tor two oeriea of Trmmmtmy bills, one series to be m additional issue of the bills dated January 8, 1959, and tm ether series U be dated April 9, 1 ^ # «aieh were offered on April 2, w r ® opened at the federal Haaerve Baates m April 6. Tenders worm invited tor ii,200,000,000, or thereabout®, of 91<^'fe£Ua swad for #*00,000,000, or thereabout*, of llt-4ay bills, fhe detail® mt itom %w* mmrimm are as folio*.t 162-day froaosry bill* M i e s of A O T ? » 91~day fi^aaury bills jaaturiag Ootober S, 1959 GOHPRTITIV?, S I M J maturing m? 9, 1959. ApfTOX. Equiv, Prioe Prtoe High 99.260 f/ 99.S51 99.255 Aver&ge a/ |/ 55 $7 2.9271 91.370 y 3.221$ 2.MM n.m 3.2k9$ 96.357 teMpttaf two teasers totaling tk52»O00 Bxe@|itiisg om tender mi #250,000 peroost #f that ajueuat of 91<-d_y bills bid for at tho low price poroeiii of tfao assousst of 182-4&J bills bid tor at t&e I©» price wmt «n-ymm A F P U S D IOR Approx. £quiv, Aaasaal late accepted At© AocsPtsD &r m_3_u. Hsgnmra HISTRICTSJ Uiairiei ^ESaCTi.rJSSL^B..- ft^BRSft. m^J**,, ^m*** Mmton I 22,187,000 1,$J2,G_9>000 33,927,000 36,931,000 17,501,000 31,1162,000 130,532,000 20,100,000 U,52b,000 39,392,O00r 12,851,000 85,737,000 |2,O7lfc,l63,00O I 1,927,000 S7li,731,000 7,796,000 22,639*000 569,000 2,266,000 95,1*90,00© 4,953,000 3,327,000 6,335,000 2,070,000 *» - - - _»_u_l_, H®8r XOFK Pblladelpfe&a Cleveland Ri©blBOJld Atlanta Chicago st. tmi* fftaioapolJ* mnmrn QAty £*ll»t •Sam frmmim&o tmm 11,117,000 791,8911,000 12,377,000 30,649,000 i7,l*S6,ooo 30,062,000 163,9k7,O0O 19,600,000 10,22b,?OO 22,1*21,000 12,851,000 |;l,t00,iC$-,000o/ • • • • # » » » _ « » #765,122,000 # 1,677,000 261,611,000 2,796,000 12,639,000 569,000 2,286,000 66,160,000 1,953,000 2,027,000 6,235,000 2,070,000 32,999,000 |l400,022,00Gd/ of imXodmm &2U.lO3,O0O nonconpeUtivo tenders aeoepted at the average price of 99.^55 jy Ingiudoo #22,1*50,000 noaooMpotiUvo tenders aeeepied at the average price of 98.357 i 5 TREASURY DEPARTMENT mmmm^mf^imtjmmmmmaia!Ciiet9mu«m W A S H I N G T O N , D.C RELEASE A. M. NEWSPAPERS, Tuesday, April 7, 1959* A-489 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated January 8, 1959, and the other series to be dated April 9, 1959, which were offered on April 2, were opened at the Federal Reserve Banks on April 6„ Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows; RANGE OF ACCEPTED COMPETITIVE BIDS: 91-day Treasury bills maturing July 9, 1959 Price High Low Average 99.260 a/ 99.251 " 99.255 182-day Treasury bills maturing October 8, 1959 Approx. Equiv. Annual Rate Price 98.370 b/ 98.350 "" 98.357 2.927# 2.963* 2.91*8$ Approx. Equiv, Annual Rate 3.22W 3.261$ 3.21*956 a/ Excepting two tenders totaling $1*58,000 £"/ Excepting one tender of $250,000 55 percent of the amount of 91-day bills bid for at the low price was accepted 67 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted Boston . New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 22,187,000 1,532,019,000 33,927,000 36,931,000 17,501,000 31,U62,000 230,532,000 20,100,000 ll,52l*,000 39,392,000 12,851,000 85,737,000 $ TOTALS $2,071*, 163,000 $1,200,105,000c/: 11,187,000 791,89l*,000 12,377,000 30,61*9,000 17,1*56,000 30,062,000 163,91*7,000 19,600,000 10,221*,000 22,1*21,000 12,851,000 77,1*37,000 j Applied For \ <t '1 J ! : s : J : : Accepted $ 8,927,000 57U,73l,000 7,796,000 22,639,000 569,000 2,286,000 95,1*90,000 h,953,000 3,327,000 6,335,000 2,070,000 35,999,000 $ 8,677,000 261,611,000 2,796,000 12,639,000 569,000 2,286,000 66,160,000 1,953,000 2,027,000 6,235,000 2,070,000 32,999,000 $765,122,000 $1*00,022, OOOd/ c/ Includes $211,103,000 noncompetitive tenders accepted at the average price of 99.255 el/ includes $22,1*50,000 noncompetitive tenders accepted at the average price of 98.357 to thank those who^by sitting on the national Advisory Cornell on International and imximtmxy and financial Problems of which Secretary Anderson is Chairman^ served a® the coordinating avenue for the U. S. delegation position. the charter is now completed, We may all spend a moment looking back with satisfaction on a job well done, but after this brief pause, we must again look forward, not back. We must now all do our utmost to bring about expeditious consideration of the Inter-American Development Bank by our respective legislative bodies. This Cosamittee now disbands, Its work completed. Each of us can point with pride and contemplate with honor the results of our labors. The charter which we are submitting today calls for mi institution of the American Republics, which will work for the benefit of the American Republics, and which will be staffed and operated by the American Republics» It is our institution. We are happy to be in a position today to participate in signing the final mt which this Specialized Committee has prepared. We look forward with confidence to a future for the Inter-American Development Bank which will make it a focal center for the financial and economic progress of all Latin America. 7 * * Specialised Ctosamittee, md their aesaeiatea. % % *»• to ©r, tr*o*t*9 and to many of Delegation in particular, awes a debt of gratitude to the translating staff which enabled us M follow the negotiations with speed and clarity. tesisting the testation to mm every delegate, I think the Sowittss tauat also egress ita appreciation for the oat* standing wi^tt of the officials of the various subcommittees. The Selegate from Chile* Sr. Don Felipe lerrera, moved the work of Subcoi^snittee 2 forward with despatch. Subcommittee I started its work under the energetic and experienced hand of Dr. Xgnacio Copete Lisarralde of Cofeorabia. Mien Dr. Copete found it necessary to return to his own country, Sr. ion Jorge Hasera of Costa Rica carried forward the work of Subcommittee I, which was called upon to handle very csnplem portions of the Committee *s work, the Style Committee worked long and tirelessly under the direction of Sr. Hon Jorge Marshall of Chile. The Coimnittee on Credentials concluded its work promptly under the Chairmanship of Ambassador VIrgilio Diaz Ordonez. X would also like to give my personal thanks to those who haved served with me in the 0. S. delegation. They include representatives of the departments of State, treasury, the Export-Import Rank and Development Loan Fund* I would also like 8 * 5 When so many outstanding individuals ham participated constructively in our work, it would be citricu.lt tm suggest which delegate mad* which eimtrilmttm^t© our «m_m« immxtk®* less, there was one fci_Uvi**l> wtma* « * * * * • * «*• conscientious toll, whose unfailing good humoreand whose ability to bring about the most satisfactory merger of- different viewpoints was outstanding. On many occasions he found the path to our mm*> tinued progress, lis optimism carried us through many a long aid difficult session. I refer, of course, to our Chairmen, Dr. Mario 0. Mendivil. to him belong our affectionate and sincere tifm "iffithit, Hay he wear this achievement proudly. oZeuo The sincere thanks of the Cofsraittee are' <§t$et &&& overcb_e, to the Organisation of American States* and to its Director General, Dr. Mora* The .able Chairman of the Inter-American and Econoiaic Social Council, Sr. Lie. Rafael Glower Valdivieso, mwm&.mm ip , ^pw' %mmy*sim w^™~-^p—jp TIRPBBIi^!^w<"''*ei^w*''* **ir *** WWPW - iws ^)i*ep~iB^PWHe^wP SP^^w^iP-gf •^weaips m 9mmp'mm*mwWmW *mr^gp^m* mr-m* my flffwspaa^swi™wS in Ha would not be hare today celebrating the completion of our work litre it net for the devoted and intelligent support which the Secretariat o_ the Organisation o£ itoe±ic-m states has provided m through long and gruelling hours mi drafting, t r a n s l a t e , iuplieatlen of docuisents* ami other services, thanks mm dm m mc. Morales, Secretary General of the ©ur s ** 4 * Inter*American Development Bank has now arrived. Its arrival has been hastened by the unremitting hard work and the real sense of give wad take which has characterized this meeting. It has been hastened by the fine feeling of Inter-American cooperation which has been displayed hf every delegate to this Specialized Committee, to those of you who have not participated in our work for thirteen busy weeks, these words may sound like the usual formalities of a closing ceremony. But those who have shared the close analysis of every phrase and every paragraph, the long hours of discussion with which we clarified our objectives, the search for a satisfactory capital structure—you will know that 1 speak sincerely. Delegates from twenty-one nations do not spend three intensive months working on a complex problem of the type with which we were faced without having honest differences of opinion. My admiration is very high Indeed for the manner in which Individual delegates presented and supported the positions of their governments. But together, country by country, delegate hf delegate, we placed our individual concepts under searching examination. Many of our original thoughts were revised, clarified and given precise expression by the process of analysis and examination, and are found in the charter before us. 10 * 3 . At the invitation of the Inter*Americen Economic md Social Council mad under the instructions of our governments, we met together in this room just three months ago to begin a very challenging task. He had bmmn asked to draft a charter for an inter^Aiaeriean financial institution, to btit% to realization the hopes and dreams for such an institution which had existed for the last sixty years. We were instructed to remain in continuous session until we could transform these aspirations of Hie past into a concrete, specific instrument for dealing with the development problems of the present, today, our work is completed. The charter for the Inter*itmericaa Development Bank lies before us on the table. One of the distinguished delegates reminded us the other day of the proverb that a journey of a thousand idles begins with a single step. The step we have taken here is a long one, and a firm one which starts us straight toward our objective of speeding still further the economic development of all the American republics. It has hmm said that there Am nothing more powerful than an idmm whoae hour has arrived. The hour for the idea of an 11 - 2Secretary of the Treasury, Eobert B», Andersont "Mm im. Uptom I congratulate you an$ the other Members of the Specialised Camittee who arefcudaycompleting the final step In drafting a charter for the pcoposed Inter-American Development Bank. tf I am confident that the proposed bank will become a major instrument of economic cooperation among the American Republics. As a result of die negotiations during the past three months in Washington, the ideas discussed at the meeting of Ministers of Finance or Economy in Buenos Aires in August of 1957 have now h®mn given a definite and concrete form. The instrument which has been drafted will provide the basis for the institution to carry out its operations In am effective mid responsible manner, with the active participation of the Latin American countries in all ttt* activities. "X would be pleased if you would read this letter at the closing session at the fan American Union as an egression to all concerned of my deep satisfaction. Sincerely, /s/ Eobert B. nindmgmm» 12 STAT_§H5I!T BY T. OATOCfi Wm*$M ASSXSTAUT BmmmmY w T H E mEkzmt Am v. a* m a n cat T H E aFa(u_iLxzjsD CQMNIVXSBt AT TKi N B A * iL^AI¥ SESSI0M 0* THE amiAUzro commae. OF ommmmf MwrnmEmhTx^m, TO momxhTR m® BHAFT m hmmmt mm m mmt** AMSHI0AI FINANCIAL XlfSTXTtJTXOM* AT THE FAN A$EaX0AM 0 M l ^ t V/UffiXHQtOlI, D # C # , VS33li-380ASr« AfllL §* 1959; '//*0/Mf, FOB HELEASE OH DELXVBBYl Mr. ahali«man# Mr. Secretary General* Fellow Delegates to the Specialised Committee* I have the honor to read a statement by the President of the United States % *fhe proposal tmr m Intet^Ameriean Develepieat Bank has taken concrete form as a result of the negotiations which have just been concluded In Washington. Such an Inter-American financial institution has been an aspiration and hope of Latin American countries for decades. "I believe that the proposed Xnter*i_aerican Development Bank, when approved by the members of the Organisation of American States through their regular legislative processes, will make a significant contribution to the continuing economic progress of the American Republics and stand as an enduring testimonial to the spirit of cooperation among these nations. I congratulate the representatives of the nations concerned for their work in advancing the proposed bank to the point marked by todayf s event.** This is the etid of the statement by President Elsenhower* I also would like to read a letter addressed to me by the {I 13 HOLD FOR RELEASE ON DELIVERY STATEMENT BY T. GRAYDON UPTON, ASSISTANT SECRETARY OF THE TREASURY AND U. S. MEMBER OF THE SPECIALIZED COMMITTEE, AT THE FINAL PLENARY SESSION OF THE SPECIALIZED COMMITTEE OF GOVERNMENT REPRESENTATIVES TO NEGOTIATE AND DRAFT AN AGREEMENT FOR AN INTERAMERICAN FINANCIAL INSTITUTION, AT THE PAN AMERICAN UNION, WASHINGTON, D. C , 11:00 A.M.,vE.S.T. WEDNESDAY, APRIL 8, 1959. ~~ Mr. Chairman, Mr. Secretary General, Fellow Delegates to the Specialized Committee: I have the honor to read a statement by the President of the United States: "The proposal for an Inter-American Development Bank has taken concrete form as a result of the negotiations which have just been concluded in Washington. Such an Inter-American financial institution has been an aspiration and hope of Latin American countries for decades. "I believe that the proposed Inter-American Development Bank, when approved by the members of the Organization of American States through their regular legislative processes, will make a significant contribution to the continuing economic progress of the American Republics and stand as an enduring testimonial to the spirit of cooperation among these nations. I congratulate the representatives of the nations concerned for their work in advancing the proposed bank to the point marked by todayfs event." This is the end of the statement by President Eisenhower. I also would like to read a letter addressed to me by the Secretary of the Treasury, Robert B. Anderson: "Dear Mr. Upton: "I congratulate you and the other members of the Specialized Committee who are today completing the final step in drafting a charter for the proposed Inter-American Development Bank. A-490 14 - 2"I am confident that the proposed bank will become a major instrument of economic cooperation among the American Republics. As a result of the negotiations during the past three months in Washington, the ideas discussed at the meeting of Ministers of Finance or Economy in Buenos Aires in August of 1957 have now been given a definite and concrete form. The instrument which has been drafted will provide the basis for the institution to carry out its operations in an effective and responsible manner, with the active participation of the Latin American countries in all its activities. "I would be pleased if you would read this letter at the closing session at the Pan American Union as an expression to all concerned of my deep satisfaction. "Sincerely, /s/ Robert B. Anderson" At the invitation of the Inter-American Economic and Social Council and under the instructions of our governments, we met together in this room just three months ago to begih a very challenging task. We had been asked to draft a charter for an inter-American financial institution, to bring to realization the hopes and dreams for such an institution which had existed for the last sixty years. We were instructed to remain in continuous session until we could transform these aspirations of the past into a concrete, specific instrument for dealing with the development problems of the present. Today, our work is completed. The charter for the Inter-American Development Bank lies before us on the table. One of the distinguished delegates reminded us the other day of the proverb that a journey of a thousand miles begins with a single step. The step we have taken here is a long one, and a firm one which starts us straight toward our objective of speeding still further the economic development of all the American republics. It has been said that there is nothing more powerful than an idea whose hour has arrived. The hour for the idea of an Inter-American Development Bank has now arrived. Its arrival has been hastened by the unremitting hard work and the real sense of give and take which has characterized this meeting. It has been hastened by the fine feeling of Inter-American cooperation which has been displayed by every delegate to this Specialized Committee. To those of you who have not participated 15 - 3in our work for thirteen busy weeks, these words may sound like the usual formalities of a closing ceremony. But those who have shared the close analysis of every phrase and every paragraph, the long hours of discussion with which we clarified our objectives, the search for a satisfactory capital structure— you will know that I speak sincerely. Delegates from twenty-one nations do not spend three intensive months working on a complex problem of the type with which we were faced without having honest differences of opinion. My admiration is very high indeed for the manner in which individual delegates presented and supported the positions of their governments. But together, country by country, delegate by delegate, we placed our individual concepts under searching examination. Many of our original thoughts were revised, clarified and given precise expression by the process of analysis and examination, and are found in the charter before us. When so many outstanding individuals have participated constructively in our work, it would be difficult to suggest which delegate made which contribution to our success. Nevertheless, there was one individual whose unlimited and conscientious toil, whose unfailing good humor and whose ability to bring about the most satisfactory merger of different viewpoints was outstanding. On many occasions he found the path to our continued progress. His optimism carried us through many a long and difficult session. I refer, of course, to our Chairman, Dr. Mario 0. Mendivil. To him belong our affectionate and sincere thanks. May he wear this achievement proudly. The sincere thanks of the Committee are also due, and overdue, to the Organization of American States, and to its Director General, Dr. Mora. The able Chairman of the InterAmerican and Economic Social Council, Sr. Lie. Rafael Glower Valdivieso, served as Vice Chairman of the Committee, and assisted Dr. Mendivil and all the rest of us In the successful conclusion of our work. We would not be here today celebrating the completion of our work were it not for the devoted and intelligent support which the Secretariat of the Organization of American States has provided us through long and gruelling hours of drafting, translation, duplication of documents, and other services. Our thanks are due to Dr. Morales, Secretary General of the Specialized Committee, and to Dr. Iraneta, and to many of their associates. My Delegation In particular, owes a debt of gratitude to the translating staff which enabled us to follow the negotiations with speed and clarity. 16 - 4Resisting the temptation to name every delegate, I think the Committee must also express its appreciation for the outstanding work of the officials of the various subcommittees. The Delegate from Chile, Sr. Don Felipe Herrera, moved the work of Subcommittee 2 forward with despatch. Subcommittee I started its work under the energetic and experienced hand of Dr. Ignacio Copete Lizarralde of Colombia. When Dr. Copete found it necessary to return to his own^country, Sr. Don Jorge Hazera of Costa Rica carried forward the work of Subcommittee I, which was called upon to handle very complex portions of the Committee!s work. The Style Committee worked long and tirelessly under the direction of Sr. Don Jorge Marshall of Chile. The Committee on Credentials concluded its work promptly under the Chairmanship of Ambassador Virgilio Diaz Ordonez. I would also like to give my personal thanks to those who have served with me in the U. S. Delegation. They include representatives of the Departments of State, Treasury, the Export-Import Bank and Development Loan Fund. I would also like to thank those who, by sitting on the National Advisory Council on International and Monetary and Financial Problems of which Secretary Anderson is Chairman, served as the coordinating avenue for the U. S. Delegation position. The charter is now completed. We may all spend a moment looking back with satisfaction on a job well done, but after this brief pause, we must again look forward, not back. We must now all do our utmost to bring about expeditious consideration of the Inter-American Development Bank by our respective legislative bodies. This Committee now disbands, its work completed. Each of us can point with pride and contemplate with honor the results of our labors. The charter which we are submitting today calls for an institution of the American Republics,. which will work for the benefit of the American Republics, and which will be staffed and operated by the American Republics. It is our institution. We are happy to be in a position today to participate in signing the Final Act which this Specialized Committee has prepared. We look forward with confidence to a future for the Inter-American Development Bank which will make it a focal center for the financial and economic progress of all Latin America. oOo 17 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 subjec 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 interes 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou 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 cluded 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, whet on original issue or on subsequent purchase, and the amount actually received eit upon sale or redemption at maturity during the taxable year for which the return 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. 19 TREASURY DEPARTMENT l^M^^^mm^mkXtni^ Washington RELEASE A.M. NEWSPAPERS, / ' Thursday, April 9, 1959 , ^ . ______ The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,600,000,000 , or thereabouts, for cash and in exchange for Treasury bills maturing April 16, 1959 , in pnm amount ^r of $ 1,599,657,000 , as follows: ___- 91 -day bills, (to maturity date) for $ 1,200,000,000 , or thereabouts, representing an additional amount of bills dated January 15, 1959 , and to mature July 16, 1959 , and to be freely interchangeable therewith. 1111 J_«JI> ' 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated April 16, 1959 , and to mature October 15, 1959 x£__# """ ~~- £_$£ The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face am 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 (matur value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 15, 1959 . p__£ "" 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 th 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 TREASURY DEPARTMENT m'tf.'"Vi'TT I ...J.ll_WI_lli|Ul|M«^ WASHINGTON, D.C. N ^ ^ _ > ^ RELEASE A.M. NEWSPAPERS, Thursday, April 9, 1959. A-491 The Treasury Department, by this public notice, invites tenders £? r £AA°™^ r A™ o f T r e a s u r v "bills to the aggregate amount of $1,000,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 16, 1959, in the amount of $1,599,657,000, as follows: 91-day bills, (to maturity date) for $1,200,000,000, or thereabouts, representing an additional amount of bills dated January 15, 1959, and to mature July l6, 1959, and to be freely interchangeable therewith. 182-day bills, for $400,000,000, or thereabouts, to be dated April 16, 1959, and to mature October 15, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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, Aprilv13, 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated January 15, 1959, (91 days remaining until maturity date on July 16, 1959) and noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April l6, 1959, In cash or other immediately available funds or in a like face amount of Treasury bills maturing April 16, 1959Cash 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 oOo or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their Reserveissue. Bank or Copies Branch. of the circular may be obtained from any Federal I'D c /"..» , r. S T A T U T O R Y D E B T LIMITATION ^ . March 3 1 . 1959 --1 A„-> 1 0 * 1959 Washington, *H>r* -• r Section 21 of Second Liberty Bond Act, as amended provides that the ^ / m ° « n t f ^ J ^ g ^ J ^ ^ ^ ^ of that Act, and the face amount of obligations guaranteed as to principa 1 and nteres,t . ^ ^ - ^ / ^ ;J" e a % C C ^ C 8 3 >00,000,000 anteed obligations as may be held by the Secretary of the Treasury), shall n£< exceed »ntbeagjre g ^ e * ^ t i ^ t h e current (Act of Sepfember 2, 1958; U.S. C , title 31, sec. 757b), outstanding at anv one t m e . F o J W J J J J J Section of the.holder redemption value of any obligation issued on a discount basis which w redeema trie prior to mat y - o ^ e s t h a t during the shall be considered as its face amount." The Act of February 26, 1958, ^'\i°?J.^ f_28^000 000.000) shall be temporarily period beginning on February 26, 1958 and ending June 30, 1959, the above limitation (J283,OUU,uuu,uuu, increased by $5,000,000,000. .. . .,., . }_OI„,J Uftt i #r . The following table shows the face amount of obligations outstanding and the face amount which$288,000,000,000 can still be issued this limitation: Total face amount that may be outstanding at any one time Outstanding Obligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills $32,233 , 877 , 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 34,390,086,000 25.429.450.000 84,189,784,750 50,980,068,480 184,570,500 8.691.652.000 21,355,823,000 15,646,352,000 6,937,500,000 $ 92,053,413,000 l44, 046,075,730 43.939.675.000 280 1 039,163,730 599,855,719 50,661,165 855,104 923.000.000 Guaranteed obligations (not held by Treasury): Interest-bearing: 118,085,300 Debentures: F.H.A Matured, interest-ceased ____ 675,325 Grand total outstanding ,A Balance face amount of obligations issuable under above authority, 974.516.269 281,613,535,718 118.760.625 March 31 1959 Reconcilement with Statement of the Public Debt ....L^.„.„...t:....l...7..<.Z.1. (Date) (Daily Statement of the United States Treasury, 5J^^...^7.!....i?.55. ) (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-492 281.732.296.343 6,267,703,657 282,034,279,295 118.760.625 282,153,039,920 420.743.57? 281,732,296,343 7 STATUTORY DEBT LIMITATION AS OF March 31. 1959 Washington, Apr, -l 1959 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issue d under authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (<except such guar-_~ i _ui: »: L _ L . I J v... >k» Co.-r_<>a•>» nf »ha TfcaciiruV "shall nnt <>Yr«>f>d in the a i? ere 2 ate redemption value of any obligation issued on a discount basis wnicn is reaeemaDie prior to maturity at the optiuu "» shall be considered as its face amount." The 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 ($283,000,000,000) 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 : $288,000,000,000 Total face amount that m a y be outstanding at any one time OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing : Treasury bills $32, 233 , 877 ,000 Certificates of indebtedness Treasury notes 3^,390,086,000 25.429.450.000 $ 92,053,413,000 BondsTreasury * Savings (current redemp. value) 84,189,784,750 50 , 9 8 0 , 0 6 8 ,480 Depositary. Investment series Special FundsCehificates of indebtedness Treasury notes Treasury bonds Tota! interest-bearing 184,570,500 8.691.652.000 144,046,075,730 21,355,823,000 15,646,352,000 6 , 9 3 7 , 5 0 0 ,000 Matured, interest-ceased 43.939.675,000 280 , 039 , l63 , 730 599,855,719 Bearing no interest: United States Savings Stamps 50,661,165 855,104 Excess profits tax refund bonds Special notes of the United States: 923.000,000 Internat'l Monetary Fund series Total 974.516.269 281,613,535,718 Guaranteed obligations (not held by Treasury): Interest-bearing: 118,085,300 Debentures: F.H.A Matured, interest-ceased .__6_____2__ Grand total outstanding ,,Balance face amount of obligations issuable under above authority 118.760.625 281.732.296.343 6,267,703,657 * u _ „i- n k, March 31, 1959 Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury, .r.....: (Date) „_.?._..?1^...1?5.? (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-492 ) 282,034,279,295 118.760.625 282,153,039,920 420.743,577 281,732,296,343 23 HUEASt; A. M. ITOSFAPHtS, Tuesday, April Ik, X959* fbe Trmmmvry Bepartiseat aaaoiaaeed last eveaiag *imt tb© tenders tor two series of treasury bills, ©as mmrimm to be aa additioaal immm of the M i l s dated January *$ # 1959, and the otaer series to be dated April 16, X959, which were o ^ e r ^ on April 9, were opmmd at the Federal Heserve Banks oa April 13. fenders war© invited for 11,200,000,000, or thereabouts, of 91-dsy bills and for $|00,000,G00, or thereabouts, of i82~day bills. fhe details of the two series are as follows.* 91-day treasury bills mturiag *&¥ **» *»» BUKUS OF AGOSFfia Ugh Law Average Price Approx. Equiv. Annual Bate 99.2J 99.; 99.2-3 2.947$ 3.0905. 3.0751 182-day treasury bills naturiag October 15. 19S9 Fxi.ee 96.320 98.301 98.30© Approx. Squiv. Annual Rate 3.3232 3.3611 3.351* 67 percent of the amount of 91~day bills bid for at tfae low priee was accepted 77 pereeat of the a&ouat of 182-day bills bid for at the low priee ~as accepted TOfAL fH_®aS AFRJID IQR AMD ACOBHED BI FSDHAL HBSMVB DISTEISfSj District Ap&lsd For Boston Mew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas Baa Francisco $ fOSALS 28,31*6,000 xM5.lol.tm 35,U0,ooo 6a ,896,000 13,206,000 26,§?>,0Q0 202,880,000 27,734,000 12,21*1,000 43,1*44,000 19,129,000 93_291_OQO m9O37*m*OQQ0 Allied For Accepted 28,346,000 773,701,000 14,149,000 52,896,000 13,206,000 2h,Q9k9QOQ 130,151,OCX) 27,234,000 10,909,000 28,iiW*,0Q0 19,129,000 77,626,000 I 7,91*8,000 619,51*3,000 8,06?,000 16,108,000 523,000 3,79l*,OOG 90,406,000 2,798,000 3,110,000 5,718,000 2,026,000 32,111,000 $ 7,91*8,000 312,55^,000 1,34*6,000 10,758,000 523,000 3,294,000 33,316,000 2,798,000 2,010,000 4,618,000 2,026,000 18,809,000 H,20G,185,000J^ $792,151*,G00 #1*00,000,QQCy Accepted mf Xaeludea $253,206,000 aoaeotspetitive tenders accepted at the average price bf ladades $23,973,000 noacosqpetitive teaders accepted at the average priee of 98.31 iy TREASURY DEPARTMENT WASHINGTON, D.C RELEASE A. M. NEWSPAPERS, Tuesday, April ll*, 1959*_ A-493 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated January 15, 1959, and the other series to be dated April 16, 1959, which were offered on April 9, were opened at the Federal Reserve Banks on April 13. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows! RANGE OF ACCEPTED COMPETITIVE BIDS: High Low Average 91-day Treasury bills maturing July 16, 1959 Price Approx. Equiv. Annual Rate 99.255 99.219 99.223 2.91*756 3.090$ 3.075$ 182-day Treasury bills maturing October 15, 1959 : Price 98.320 98.301 98.306 Approx. Equiv. Annual Rate 3.323$ 3.361$ 3.351$ 67 percent of the amount of 91-day bills bid for at the low price was accepted 77 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco % 28,31*6,000 1,1*65,761,000 35,1*1*9,000 68,896,000 13,206,000 26,894,000 202,880,000 27,73l*,O00 12,21*1,000 43,1*44,000 19,129,000 93,291,000 TOTALS $2,037,271,000 Accepted Applied For Accepted 28,346,000 773,701,000 14,1*49,000 52,896,000 13,206,000 24,094,000 130,151,000 27,234,000 10,909,000 28,444,000 19,129,000 77,626,000 % 7,948,000 619,543,000 8,069,000 16,108,000 523,000 3,794,000 90,406,000 2,798,000 3,110,000 5,718,000 2,026,000 32,111,000 $ 7,948,000 312,554,000 1,346,000 10,758,000 523,000 3,294,000 33,316,000 2,798,000 2,010,000 4,618,000 2,026,000 18,809,000 4fcL,200,l85,OOOa/ $792,154,000 $400,000,000b/ a / includes $253,206,000 noncompetitive tenders accepted at the average price of 99.223 T£f includes $23,973,000 noncompetitive tenders accepted at the average price of 93.306 23 AEUStsE A . n. nmmAmm, Tuesday, April 14, 1959. The treasury Dspar1»ent aaneuaeed last evening that the tenders for two series of Treasury bills, ©ae series to be an additional issue of the bills dated Jtoiary 15, 1959, aad the other series to be dated April 16, 1959* which were offered oa April 9, were opened at the federal leserve Banks oa April 13* fenders were invited for $1,200,000,000, or thereabouts, of 91-day bills aad for #400,000,000, or thereabouts, of 182-day bills. The details of the two series are as followsi R A » g m ACOSFfS) I82~isy treasury bills 91~day treasury bills CQHPETIfliri KJgi « t u r l ^ October 15, 1959 jBaturiag Ml " *** jgg, Frice Approx. Equiv. Annual late Approx. Equiv. Price Annual late i .•nin,,.w.m..ii«ii.iii,.i«|.i:li||Wi»r.«iir.a:<.»»i Ugh Low Average 99.255 99.219 99.223 m 91.320 3.323$ 98.301 9S.306 3.361$ 3.351* 3*m$% 67 psreetsfc of the assouat of 91~day bills bid for at the low price was accepted 77 perceat of the amount of l8S*dty hills bid for at the low price was accepter TOfAL TSHDBBS APPLKD mm District Boston lew York Fbiladelphta Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas SanTOTALS Francisco AID AOCBFTSD H I wmmi m^.m AgBBftrtn munis. BxarjiicfSs Applied For I 28,346,000 $ 7,948,000 I 28,346,000 773,701,000 619,543,000 1,465,761,000 14,449,000 8,069,000 35,449,000 16,108,000 & m*Qom 9 61,196,000 523,000 13,206,000 13,206,000 3*794*000 24,094,000 26,894,000 90,406,000 I30,l5i,ooo 202,880,000 2,798,000 27,234,000 27,734,000 3,110,000 10,909,000 12,241,000 5,718,000 28t4l*4,ooo 43,444,000 2,026,000 19,129,000 19,129,000 32,111,000 ^,037,271,00^ 11,200,185,000^ $792,154,000 Accepted f 7,948,000 312,554,000 1,346,000 10,758,000 523,000 3,294,000 33,316,000 2,798,000 2,010,000 4*610,000 2,026,000 18,809,000 |l$00,000,000y a/ laeludes #253,206,000 noncosepetitiire tenders accepted at the average price of §/ ladudes $23,973,000 noncompetitive tenders accepted at the average price of M.tf y RELEASE A. M. NEWSPAPERS, Tuesday, April 14, 1959* A-493 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated January 15, 1959, and the other series to be dated April 16, 1959, which were offered on April 9, were opened at the Federal Reserve Banks on April 13. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. The details of the two series are as followss RANGE OF ACCEPTED 91-day Treasury bills s 182-day Treasury bills COMPETITIVE BIDS: maturing July 16, 1959 i maturing October 15, 1959 Approx. Equiv. : Approx. Equiv. Price High Low Average Annual Rate 99.255 99.219 99.223 2.947$ 3.090$ 3.075$ : Price Annual Rate * 98.320 98.301 98.306 3.323$ 3.361$ 3.351$ 8 « 67 percent of the amount of 91-day bills bid for at the low price was accepted 77 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS? District Applied For Accepted ss Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 28,346,000 1,465,761,000 35,449,000 68,896,000 13,206,000 26,894,000 202,880,000 27,734,000 12,241,000 43,444,000 19,129,000 93,291,000 $ TOTALS $2,037,271,000 ^1,200,185,000a/ S $792,154,000 28,346,000 t1 $ 7,948,000 773,701,000 1 619,543,000 14,449,000 .s 8,069,000 52,896,000 ! 16,108,000 13,206,000 I 523,000 24,094,000 : 3,794,000 130,151,000 .5 90,406,000 27,234,000 : : 2,798,000 10,909,000 : 3,110,000 5,718,000 28,444,000 . 2,026,000 19,129,000 : 32,111,000 77,626,000 . Accepted $ 7,948,000 312,554,000 1,346,000 10,758,000 523,000 3,294,000 33,316,000 2,798,000 2,010,000 4,618,000 2,026,000 18,809,000 $400,000,000b/ a/ Includes $253,206,000 noncompetitive tenders accepted at the average price of 99.223 £"/ includes $23,973,000 noncompetitive tenders accepted at the average price of 93.306 25 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or inter 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am of discount at which bills issued hereunder are sold is not considered to accru until such bill's are sold, redeemed or otherwise disposed of, and such bills ar cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in hi income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the retur 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. - 2itA*4e^;*;*^*;*;**;w:*.».t:4;t:4;***t 26 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 pe cent of the face amount of Treasury bills applied for, unless the tenders are acc panied 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 fin Subject to these reservations, noncompetitive tenders for $200,000 or less for th additional bills dated January 22, 1959 , (91 days remaining until maturity date on July 25, 1959 ) and noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full a the average price (in three decimals) of accepted competitive bids for the respec tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 23, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing April 23, 1959 Cash and exchange tenders will receive equal treatment. $_5£x 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 27 xxx___xxxx AM**«:i>*.*#;.o.*:*vf.; TREASURY DEPARTMENT Washington i:t>. * M * • . •'•.*:*.•». i RELEASE A.M. NEWSPAPERS, Thursday, April 16, 1959 ^ / ^ The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,400,000,000 , or thereabouts, ?or cash and in exchange for Treasury bills maturing of $ 1,400,854,000 April 23, 1959 , in the amount , as follows: 91 -day bills, (to maturity date) for $ 1,000,000,000 , or thereabouts, ______ - ^ representing an additional amount of bills dated January 22, 1359, and _—pj--.— to mature July 23, 1959 , and to be freely interchangeable therewith. —^@r 182 -day bills, for $ 400,000,000 JSgf- , or thereabouts, to be dated $c_S$: '"" April 25, 1959 , and to mature October 22, 1959 . r^Lg £*_* The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 20, 1959 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 . 28 TREASURY DEPARTMENT B_T_______:_r_:_r^__-~—~r~r-r • v^;v^'^.;.-»*T:rjFr—T^TCTT^^ WASHINGTON, D.C RELEASE A.M. NEWSPAPERS, Thursday, April 16, 1959. A-494 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 23, 1959, In the amount of $1,400,834,000, as follows: 91-day bills, (to maturity date) for $1,000,000,000, or thereabouts, representing an additional amount of bills dated January 22, 1959* a n d to mature July 23, 1959* and to be freely Interchangeable therewith. 182-day bills, for $ 400,000,000, or thereabouts, to be dated April 23, 1959, and to mature October 22, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be Issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value).. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 20, 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated January 22, 1959, (91 days remaining until maturity date on and July 23, 1959) noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 23, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing April 23, 1959. 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*1-. 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 0O0 or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe theor terms of and govern from the conditions of their Reserveissue. Bank Copies Branch. ofthe theTreasury circularbills may be obtained any Federal 29 April 2, 1959 Hut following transactions -mm w&d® in direct an?i guarantee-, mmwrAtto* • of the Qovpranftflt for Treasury irwestneate and other accounts during the mnm of v*rch9 1959f Purehaaes $131,009,500.00 Sales ^68^2,700.00 :*t _**•_*». : 62,216.^0.00 (8g_) Gtarloa I. Brnimmn Chief, Investments BasuM-i Division sf deposits Is Iar@g%a@Ett* /yrvs 30 TREASURY DEPARTMENT WASHINGTON, D.C IMMEDIATE RELEASE, Jtondayy-Maroh l4y_JL£59. 7^w«u*_^ /J,/*** During Fobruary: 1959, 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 oOo TREASURY DEPARTMENT W A S H I N G T O N , D.C. IMMEDIATE RELEASE, Wednesday, April 15, 1959. A-495 During March 1959, 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 $62,216,800.00. oOo 32 - 2 IXirlng World War II, he samd tbnt* fears in the 0*S. Armr M r Foree as a iMmgtoa pilot instructor. He has authored arfelelas to various publications. Including economic journals and periodie arrl*m t M ttKttaa reports for the Federal Rsstrv* baalcs. He* Mallear is a matfber of Beta 0««ta Blgna* honorary business adzBlnistastloii fraternity, the Intrlean Economic Association, and the Southwestern Social Science Association* a» is errantly a wmlNir of the Editorial Board of ft» Journal of fSjomee, official publication of tits Aaerle&n Finance Association, and is a past amber of the board of directors of that organization* Hr* Halker la wrried and has tm children. 0O0 33 eo__5________r j£7_ Pom^mMAmM •••„, i. i - • "^""^ Charls B. Walker, Viee President and Economic Adviser of the Federal ffceserve Bank of Dallas, Texas, has keen named an Assistant t© the Secretary of the Treasury. Mr. Walker will serve as an economic consultant on special assigmaents for the Secretary of the Treasury and other top Treasury officials. Mr. Walker, a native of Graham, Texas, returned in Septeaber 1956, to the Federal Reserve Bank of Dallas where be had previously served as ? inane la 1 BconoadLst. At the Republic National Bank of Dallas, !€_*. Walker had served one year as economist and Special Assistant to the President while the banlis President, Mr. Fred F. Florence, was President of the African Bankers Association* ffr. Walker holds both bachelorfs and masterfs degrees in business administration frost the Iftiiverslty of Texas, and a I*. D. degree frc® the University of Pennsylvania. From 19^8 to 1950 he taught in the Wharton School of Finance and Oo__serce of the University of Pennsylvania. Then, fro© 1950 until the sumaer of 1954, be served as Assistant Professor of Finance, and later as Associate Professor of Finance, at the University of Texas. Mr. Walker served as associate economist, Federal Be serve Bank of Philadelphia, while on leave of absence from the University of Texas in 1953. IMMEDIATE RELEASE Wednesday, April 15, 1959 A-496 Charls E. Walker, Vice President and Economic Adviser of the Federal Reserve Bank of Dallas, Texas, has been named an Assistant to the Secretary of the Treasury. Mr. Walker will serve as an economic consultant on special assignments for the Secretary of the Treasury and other top Treasury officials. Mr. Walker, a native of Graham, Texas, returned in September 1956, to the Federal Reserve Bank of Dallas where he had previously served as Financial Economist. At the Republic National Bank of Dallas, Mr. Walker had served one year as economist and Special Assistant to the President while the bank*s President, Mr. Fred F. Florence, was President of the American Bankers Association. Mr. Walker holds both bachelor's and master's degrees in business administration from the University of Texas, and a Ph.D. degree from the University of Pennsylvania. From 1948 to 1950 he taught in the Wharton School of Finance and Commerce of the University of Pennsylvania. Then, from 1950 until the summer of 1954, he served as-Assistant Professor of Finance, and later as Associate Professor of Finance, at the University of Texas. Mr. Walker served as associate economist, Federal Reserve Bank of Philadelphia, while on leave of absence from the University of Texas in 1953. During World War II, he served three years in the U.S. Army Air Force as a 4-engine pilot instructor. He has authored articles in various publications, including economic journals and periodic reviews and annual reports for the Federal Reserve banks. Mr. Walker is a member of Beta Gamma Sigma, honorary business administration fraternity, the American Economic Association, and the Southwestern Social Science Association. He is currently a member of the Editorial Board of The Journal of Finance, official publication of the American Finance Association, and is a past member of the board of directors of that organization. Mr. Walker is married and has two children. 0O0 J/r - 2- Commodity Period and Quantity : Unit : Imports : of : as of ; Quantity; April 4, 1959 Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter) ... 12raos.from August 1, 1958 Rye> rye flour, and rye meal .... 12 mos. from July 1, 1958 Canada Other Countries Butter substitutes, including butter oil, containing k5% or more butterfat Tung oil * Imports through April 13. Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries 1,709,000 Pound 1,522,723* 182,280,000 3,720,000 Pound Pound 182,178,566* 1,200,000 Pound Quota Filled 16,633,591 2,231,680 702,000 Pound Pound Pound 5,710,506* Quota Filled Quota Filled 36 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE FRIDAY, APRIL 17, 1959* A-497 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 April 4, 1959, inclusive, as follows: Commodity Period and Quantity : Unit : Imports : of : as of :Quantity:Apr. 4. 1959 Tariff-Rate Quotas: Cream, fresh or sour •• Calendar Year 1,500,000 Gallon 28 Whole milk, fresh or sour Calendar Year 3,000,000 Gallon 46 Cattle, 700 lbs. or more each (other than dairy cows) ....... January 1, 1959 March 31, 1959 April 1, 1959 June 30, 1959 Cattle, less than 200 lbs. each. 12 mos. from April 1, 1958 12 mos. from April 1, 1959 120,000 Head 32,479 120,000 Head 630 200,000 Head 17,917 200,000 Head 1,612 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish ... Calendar Year 36,919,874 Pound 15,225,885-=/ Tuna fish ••• •••••• Calendar Year 52,372,574 Pound 11,308,844 114,000,000 36,000,000 Pound Pound 65,986,445 4,864,598 Walnuts •• • • Calendar Year 5,000,000 Pound 1,632,556 ALsike clover seed • 12 mos. from July 1, 1958 3,000,000 Pound 2,595,789 80,000,000 Pound 3,378,580 White or Irish potatoes: Certified seed ••• • Other 12 mos. from Sept. 15, 1958 Peanut oil • 12 mos. from July 1, 1958 Woolen fabrics Calendar Year To be Pound announced 6,844,547 (I) Imports for consumption at the quota rate are limited to 18,459,93? pounds during " TREASURY DEPARTMENT Washington, D. C. 37 IMMEDIATE RELEASE FRIDAY, APRIL 1 7 , 1959. A-497 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 April 4, 1959, inclusive, as follows: Unit : Imports of : as of Quantity:Apr. 4. 1959 Commodity Tariff-Rate Quotas: Cream, fresh or sour • • • •. Calendar Year Calendar Year Whole milk, fresh or sour Cattle, 700 lbs. or more each (other than dairy cows) ••••. January 1, 1V59 March 31, 1959 April 1, 1959 June 30, 1959 Cattle, less than 200 lbs. each. Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish ... 12 mos. from April 1, 1958 12 mos. from April 1, 1959 Calendar Year 1,500,000 Gallon 3,000,000 Gallon 46 120,000 Head 32,479 120,000 Head 630 200,000 Head 17,917 200,000 Head 1,612 36,919,874 Pound 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 65,986,445 4,864,598 1,632,556 Walnuts Calendar Year 5,000,000 Pound fd.sike clover seed 12 mos. from July 1, 1958 15,225,885=-/ 11,308,844 Tuna fish Calendar Year 52,372,574 Pound tfhite or Irish potatoes: Certified seed Other 28 3,000,000 Pound 2,595,789 80,000,000 Pound 3,378,580 5 eanut oil 12 mos. from " July 1, 1958 6,844,547 foolen fabrics Calendar Year To be Pound announced - 2 - Commodity 1 : Period : and Quantity : Unit : Imports as 0f : of : , -,o_n :Quantity: April 4, 1959 Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter) .... 12 mos. from August 1, 1958 &y e , ry© flour, and rye meal ... Butter substitutes, including butter oil, containing 45$ or more butterf at < Tung oil -* Imports through April 13- 12 mos. from July 1, 1958 Canada Other Countries Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries 1,709,000 Pound 1,522,723* 182,280,000 3,720,000 Pound Pound 182,178,566* 1,200,000 Pound Quota Filled 16,633,591 2,231,680 702,000 Pound Pound Pound 5,710,506* Quota Filled Quota Filled ' /~s — J CD 38 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE Friday, April 17, 1959. A-498 The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to April 4, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: Commodity : : Unit : Established Annual : of : Quota Quantity :Quantity Buttons 765,000 Gross Imports as of April 4. 1959 98,567 Cigars 180,000,000 Number 1,195,854 Coconut oil 403,200,000 Pound 38,310,984 Cordage 6,000,000 Pound 1,450,285 (Refined Sugars (Unrefined. • 8,480,000* 1,904,000,000 Pound Tobacco 5,850,000 Pound * Information furnished by Department of Agriculture. 498,^18,000* 2,868,775 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE Friday, April 17, 1959. A-498 The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to April 4, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: : : Unit : Imports Commodity Buttons : Established Annual : . of : as of : Quota Quantity :ijuantity : April 4. 1959 765,000 Gross 98,567 Cigars 180,000,000 Number 1,195,854 Coconut oil 403,200,000 Pound 38,310,984 Cordage 6,000,000 Pound 1,450,285 (Refined 8,480,000* Sugars (Unrefined 1,904,000,000 Pound Tobacco 5,850,000 Pound 2,868,775 * Information furnished by Department of Agriculture. 498,518,000* CO CO LO -«i2— COTTON WASTES (In pounds) COTTON CARD STRIPS made from cotton having-a staple-of less than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, 'WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUES Provided, however, th_t not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the case of the following countries? United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin United Kingdom Canada . . . . France . . . . British India , Netherlands Switzerland Belgium . . Japan . . . China , , . Egypt . • . Cuba o „ . 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 if Included in total imports, column 2, Prepared in the Bureau of Customs. 1 Total Imports I Established s I m p o r t s T f g Sept. 20, 1956, to s • 33-1/356 of : Sept. 20,.19^8 Total Quota : to April 13, 1959 : April 13, 1959 1,448,232 239,690 1,441,152 1,441,152 75,807 25,302 22,747 14,796 12,653 24,935 6fq80 25,443 7.088 24,935 6,580 1,744,739 1,599,886 1,472,667 CO CO !_D 41 TREASURY DEPARTMENT Washington, D. C* IMMEDIATE RELEASE A Friday, April 17, 1959* j,QQ ^ Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) Cotton under 1-1/8 inches other than rough or harsh under 3/4" Imports September 20, 1958 - April 13, 1959 Country of Origin Established Quota Imports Country of Origin Established Quota Egypt and the Anglo- Honduras ....... ... 752 Egyptian Sudan 783,816 ?er^y •••• • 247,952 British India 2,003,483 9,672 china •••• 1,370,791 Mexico 8,883,259 $,883,259 Brazil 618,723 618,723 Union of Soviet Socialist Republics ... 475,124 327,702 Argentina 5,203 ' Haiti 237 Ecuador... 9,333 _ Paraguay ......... . Colombia .............. Iraq British East Africa ... Netherlands E. Indies . Barbados l/other British W. Indies Nigeria 2/0ther British W. Africa 3/0ther French Africa ... Algeria and Tunisia ... 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. • / Other than Gold Coast and Nigeria. / Other than Algeria, Tunisia, and Madagascar. Cotton 1-1/8" or more Imports August 1, 1958 - April 13. 1959 Established Quota (Global) - 45,656,420 Lbs. Staple length Allocation Imports 1-3/8" or more " 1-5/32" or more and under I-3/8" (Tanguis) 1-1/8" or more and under 1-3/8" 39,590,778 39,590,778 1,500,000 1,500,000 4,565,642 4,565,642 871 124 195 2,240 71,388 21,321 5,377 16,004 689 42 TREASURY DEPARTMENT Washington, D. C. A-499 MEDIATE RELEASE Friday, April 17, 1959 Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) Cotton under 1-1/8 inches other than rough or harsh under 3/4" Imports September 20, 1958 - April 13, 1959 Established Quota Country of Origin Egypt and the AngloEgyptian Sudan Peru • British India , China Mexico Brazil Union of Soviet Socialist Republics Argentina Haiti Ecuador 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports Honduras 9,672 8,883,259 618,723 327,702 Established '^uota Country of Origin Paraguay Colombia Iraq British East Africa ... Netherlands E. Indies . Barbados l/Other British W. Indies Nigeria 2/Other British W. Africa 3/Other French Africa ... Algeria and Tunisia ... 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3/ Other than Algeria, Tunisia, and Madagascar. Cotton 1-1/8" or more Imports August 1, 1958 - April 13, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation Imports I-3/8" or more 39,590,778 r 1-5/32" ° more and under 1-3/8" (Tanguis) 1,500,000 -1-1/8" or more and under 1-3/8" 4,565,642 39,590,778 1,500,000 4,565,642 752 871 124 195 2,240 71,388 21,321 5,377 16,004 689 imp or - - - -«"%_— COTTON WASTES (In pounds) COTTON CARD STRIPS made-from cotton having-_, staple of less than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, 'WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUES Provided, however, that not more than -33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple- length in the case- of the- following countries? United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Established TOTAL QUOTA Country of Origin United Kingdom Canada • • • • France « . . « British India Netherlands Switzerland Belgium . . Japan . . . China < . • Egypt . . . Cuba . . . Germany « . Italy . . . . 9 . » . o e . » • « .. . . 9 . . . •9 e . 9 • • i Total Imports "s Sept. 20, 1958, to : April 13, 1959 4,323,457 239,690 227 -, 420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 .-. 21,263 1,448,232 239,690 5,482,509 1,744,739 l/ Included in total imports, column 2, Prepared in the Bureau of Customs. Established 33-1/35* of Total Quota 1,441,152 Imports Sept. 20, 1958 t o April 13, 1959 1,441,152 75,807 25,302 22,747 14,796 12,853 24,935 ___4_i80_ 25,443 7,088 24,935 6,580 1,599,886 1,472,667 V 43 TREASURY DEPARTMENT Washington, 0. C. IMMEDIATE RELEASE Friday, April 17, 1959. A-500 PRELIMINARy DATA ON IMPORTS FOR CONSUMPTION OF DNMANUPACTUiiSS LEAD AND ZINC CHARGEABLE TO fSS &0OTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 Of SEPTEMBER 22, 195S GDARTERLT QUOTA PERIOD - January 1, 1959 « Marshal, 1959 IMPORTS • January 2, I959 - March 31, I959 Country of Production Australia ITEM 391 ITEM ?92 * _eaa bullion su-iion orbass or case bullion, ouiuon, J1 Lead s 11 lead load in pigs and bars, lead 1 Lead-bearing ores, flue dust,t dross, raolaiasd lead, scrap t and mattes s lead, anti_onial lead, anti* s aonial serap lead, type -etal, : t all alloys or combinations of t(_iartarly Quota ±:Quartsriy Gsaota J lead n.s.p.f. 1 Dutiable. Lead I-ports : Dutiable Lead I-porta (Pounds') "^FoundsJ """"" 10,080,000 10,080,000 23*680,000 ITEM 393 ITEM 394 : I t t s Zino-bearing ores ©f all kinds,s Zino ia blocks, pigs, or slabs; : except pyrites containing not : old and worn-out zino, fit j over 3 $ of sino t only to be reaanufactured, lino s : ' dross, and sine skimmings :<_aarterly _jota j •jQuarterly Quota t Dutiable Zing laports : By Weight Imports (Pounds') 23,-80,000 Belgian Congo 5,440,000 Belgium and Luxemburg (total) Bolivia Canada 5,040,000 13,440,000 Italy « lexioo - 5*040,000 - 13,440,000 15*920,000 37,840,000 3,600,000 3,600,000 36,880,000 70,480,000 70,480,000 6,320,000 6,320,000 12,877,539 35,120,000 35,120,000 3,760,000 3,757,737 in. So. Africa 14,880,000 14,880,000 . PBS.PAK-D XN TK2 BOB_AU 0~ CUSTOMS 66,480,000 37,840,000 - 12,880,000 6,560,000 66,480,000 36,880,000 16*160,000 11 other foreign countries (total) 7,520,000 . m l6,UQpQ0Q m 15,920,000 7,520,000 - HTX\ ugoslovia - 5,440,000 a* • - - - 15,760,000 15,760,000 - 2,589,453 6,030,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 44 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE A-500 Friday, April 17* 1959. PRELtMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UH-ANU?ACTUH-D LEAD AND ZINC CHARGSABLE TO THE OUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 195« fflJARTERLY QUOTA PERIOD - January 1, 1959 - March 31, 1959 IMPORTS - January 2, 1959 - March 31, 1959 ITEM Country of Produotion Australia 391 : 1 1 V t Lead-bearing ores, flue dust,: : and cattes : j j :C_iart9rly feiota t Dutiable. Lead Iaporta "(pounds) 10,080,000 10,080,000 ITEM 394 ITEM 393 ITEM ?92 Lead 'bullion™or base bullion, lead in pigs and bars, lead Zina-baaring ores of all kind3,s Zinc la blocks, plg3, or slabs} d_033, reolai-ad lead, scrap except pyrites containing not : old and -cm-cut zinc, fit lead, antisonial 1-aad, anti1 only to be resanufactorsd, zinc over 3^ of lino aoaial scrap load, type _atal, : dress, and zinc ski.__Inga all alloys or coobinationa of lsad n.s«p»f. :Quarterly Quota tOoartsrly __ota irtarly Quota Inserts Isoarts Isoorta : Dutiable Zins Duti^bla Lsai (Pounds; (pounds) (pounds')" 23,680,000 23,680,000 5,440,000 Belgian Congo Belgium and Luxemburg (total) Bolivi* 5,040,000 5,040,000 Canada 13,440,000 13,440,000 15,920,000 15,520,000 66,430,000 66,480,000 Italy Msxico Peru l6,l6oPooo 16,160,000 On. So. Africa 14,880,000 14,880,000 Yugoslovia All other foreign countries (totad) 6,560,000 PH2?„P_3 IN TH2 BOSSA- 0~ CUSTOMS 2,589,453 36,880,000 36,880,000 12,830,000 12,877,539 15,760,000 15,760,000 6,030,000 6,080,000 5,440,000 7,520,000 7,520,000 37,840,000 37,840,000 3,600,000 3,600,000 70,480,000 70,480,000 6,320,000 6,320,000 35,120,000 35,120,000 3,760,000 3*757*737 17,840,000 17,840,000 6,080,000 6,030,000 CO LO TREASURY DEPARTMENT Washington, S. C. IMMEDIATE RSLEASS A-501 Friday, April 17* 1959. PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 1958 QUARTERLY QUOTA PERIOD » April 1, 1959 - June 30, 1959 IMPORTS - April 1, 1959 - April 14, 1959 ITEM 394 ITEM 393 ITEM 392 : Lead bullion or base bullion, t lead in pigs and bars, lead t Lead-bearing ores, flue dust,t dross, reclaimed lead, scrap : Zino-bearing ores of all kinds, Zino in blooks, pigs, or slabs; old and worn-out zino, fit and mattes : lead, anti_onlal lead, anti: except pyrites containing not only to be reaanufactured, zino : aonial scrap lead, type setal, : over 3$ of zino dross, and zino skimmings j all alloys or combinations of 1 % lead n.s.p.f. t Quarterly Quota i&aartarly _aota Quarterly _iota : Quarterly Quota Iraoorts By Weight Imports Iffloorts t Dutiable Zinc t Dutiable. Lead Imports : Dutiable Laad_jt_ (Pounds) (Pounds) (Pounds) * (Pounds)" ITEM 391 Country of Production Australia 10,080,000 7*742,592 23,680,000 4,002,762 * Belgian Congo Belgium and Luxemburg (total) Bolivia Canada 7,520,000 5,040,000 5,040,000 m 23,476,136 37*840,000 5,781,905 3,600,000 3,600,000 70,480,000 3,800,291 6,320,000 1,246,333 35,120,000 9,635,411 3»76o,ooo 17,840,000 17,840,000 13,440,000 7,607,859 15,920,000 2,302,565 66,480,000 36*880,000 sxioo era 1.,160,000 13,799*202 n. So. Africa 14,880,000 3,138,609 ugoslovia 6,560,000 PB2PJ-—:_ TH TH2 BURSA" OF CUSTOMS 429,732 5,806,406 - taly 11 other foreigi jountries (total) 5,440,000 2,652,680 12,880,000 m 15,760,000 4,389,464 6,080,000 6,080,000 6,080,000 6,080,000 TREASURY DEPARTMENT Washington, D. C. 46 X__20XAT_ RELEASE A-501 Friday, April 17* 1959. PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UN_ANU?ACTU?_D LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 195« QUARTERLY QUOTA PERIOD - April 1, I959 - June 30, 1959 IMPORTS - April 1, 1959 - April 14, 1959 ITEM 394 IT£M 392 ITEM 393 : Lead bullion or base bullion, : * t lead in pigs and bars, lead : t Lead-bearing ores, fluo dust,: dro33, raclal-ad load, sera? : Zinc-baaring ores of all kind3,: Zino ia blooks, pigs, or slabs; and mattes : lead, antiaoalal lead, anti: except pyrites containing not : eld and *ora-o_t zinc, fit x only to be reaanufactured, zinc : aoalal scrap load, type -atal, : cvsr yja of zino dross, and zino ski.—ainga j all alloys or ocQbinationa of : j lead n.s.p.f. 1 iSiartarly Quota :G_artariy _iota Quarterly feiota :£_artarly Quota Inoorts i By £ei?frt I~?ort» Ir-jarta t Dutiable Zinc 1 Dutiable. Lead Iaports : Dutiable Laad (PcundsJ (Pounds) (Pouads) "(piounds) ITEM 391 Country of Production Australia 10,080,000 7,742,592 23,680,000 4,002,762 5,440,000 Belgian Congo Belgium and Lux9_burg (total) 7,520,000 Bolivia 5,040,000 5,040,000 Canada 13,440,000 7,607,859 m 15,920,000 Italy Mexico 36,880,000 Peru l6,l6G?GQ0 13,799*202 12,830,000 Un« So. Africa 14,880,000 3,138,609 All other foreign oountries (total) 2,302,565 66,480,000 37,840,000 5,781,905 3,600,000 3,600,000 3,800,291 6,320,000 1,246,333 35,120,000 9,635,411 3,760,000 17,840,000 17,840,000 23,476,136 a* Yugoslovia 6,560,000 Pft_?_R-D IK THS BORSiUJ 0_ CUSTOUS 429,732 5,806,406 2,652,680 15,760,000 4,389,464 6,080,000 6,080,000 70,480,000 6,080,000 6,080,000 47 A - i on_ EEUASE A. K. NWSPAFEHS, •T»e»d»y, April 21, 1959, The Treasury Department announced Xmmt e w i a g that the tender® tor two eer^e* of Treasury bills, om series to be an additional irnmm of the bill® dated January 22, and the other aerlm to ho dated April 23, 1959, which worn offered on April 16, we opened at the federal Besenr® Baiics on April 20. Tender® were invited for 11,000, or thereaboute, of 91-day Mils and for 11*00,000,000, or thereabouts, of 182-day b the details of the too series are ae fellows § KAMHE Of ACCEPTS© GQHPETITXVS BXDfts Friee High tow Average 182-day Treasury bUle maturing October 22, X9S9 91~day Treasury bills maturing <?ulj 23, 1959 99.229 *f 99.21k 99*21$ Approrn. Equiv. Annual Hate Price 98.306 b/ 98.297 98.301 3*050% 3.XQ9% 3.105% Approx. Equiv. Annual late 3.35US 3.369* 3.36l# mf Excepting om tender of $350,000 W Excepting one terser of 11,000,000 tfe percent of the amount @f 91~day bills bid for at the low price was accepted 19 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL m m m s ArrXXSD wm k m ACCEPTED m wmmkh Bletriet Applied for Boston Mew fork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis iimieapolie lansas City Dallas San Francisco I 23,787,000 1,J|26,383,000 30,864,000 57,220,000 13,918,000 til, 760,000 835,572,000 23,567,000 9,500,000 1*6,320,000 20,2114,000 TOTALS 11,975,338,000 *#*33,oqo RBSSRTO DISTRICTSt Accepted 22,567,000 663,632,000 15,1*37,000 36,826,000 13,373,000 18,855,000 100,025,000 18,11*7,000 9,000,000 30,732,000 19,36ii,000 52,ii93_OQQ ll,ocx),^71,00O|/ Applied tor Accepted $ 2,651,000 659,385,000 9,383,000 17,090,000 2,10li,000 3,719,000 78,1*96,000 2,705,000 1,601,000 5,1*77,000 2,867,000 33,816^000 % 2,651,000 327, 910,000 95*4,000 890,000 70l},000 719,000 x, 3,360,000 705,000 x,1401,000 1,1492,000 h,867,000 l: 2, iq6,ooo 18, 1819,2914,000 11*00,069,000*/ of Includes 1256,620,000 noncompetitive tendere accepted at the averse price of 99 21_ t Z T £ 0 f * £ . * $ *' Include* f23,6o6,000 noncompetitive tendere accepted at the % U TREASURY DEPARTMENT W A S H I N G T O N , D.C. RELEASE A. M. NEWSPAPERS, Tuesday, April 21, 1959. AT5<8L The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated January 22, and the other series to be dated April 23, 1959, which were offered on April 16, we opened at the Federal Reserve Banks on April 20. Tenders were invited for $1,000,00 or thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day b The details of the two series are as follows t RANGE OF ACCEPTED COMPETITIVE BJDSs 91-day Treasury bills maturing July 23, 1959 Price High Low Average 99.229 a/ 99.2114 99.215 Approx. Equiv. Annual Rate 3.050$ 3.109$ 3.105$ 182-day Treasury bills maturing October 22, 1959 Price 98.306 b/ 98.297 98.301 Approx. Equiv, Annual Rate 3.351$ 3.369$ 3.361$ a/ Excepting one tender of $350,000 b/ Excepting one tender of $1,000,000 $5 percent of the amount of 91-day bills bid for at the low price was accepted 19 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS} District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS Applied For Accepted Applied For * 23,787,000 I,li26,383,000 30,86*4,000 57,220,000 13,918,000 21^,760,000 216,572,000 23,567,000 9,500,000 1*6,320,000 20,2lli,000 82,233,000 22,587,000 663,632,000 15,1*37,000 36,826,000 13,373,000 18,855,000 100,025,000 I8,lh7,000 9,000,000 30,732,000 19,3614,000 52,1493,000 I 2,651,000 659,385,000 9,383,000 17,090,000 2,10i|,000 3,719,000 78,196,000 2,705,000 1,601,000 5,177,000 • 2,867,000 33,816,000 $1,975,338,000 tl,000,l*71,000c/i $819,2914,000 Accepted 1 2,651,000 327,910,000 2,9514,000 6,890,000 1,7014,000 3,719,000 25,360,000 1,705,000 1,101,000 14,1492,000 2,867,000 I8,lil6,000 $h00,069,000d/ y Includes $256,620,000 noncompetitive tenders accepted at the average price of 99.2 |( Includes $23,606,000 noncompetitive tenders accepted at the average price of 98.301 CD - 10 - _JM monetization as if I had called down to the Bureau of Engraving and Printing and said, 'Please print me up $100 million worth of greenbacks which I can pay out tomorrow.!" At this point my visitor broke in to say, "Oh, I would be against printing those greenbacks I" There are many lessons to be learned from the history — and particularly from the history of manfs struggle to achieve and maintain human freedom. But one lesson stands out: Each generation must have the wisdom, the courage, and the toughness to accept the responsibilities which are uniquely theirs. If they do not — if difficult problems are pushed aside — the generations that follow will surely pay the price. Alfred North Whitehead has said that every epoch has its character determined by the way its population reacts to the material events they encounter. They may rise to greatness — or they may collapse. In writing of the Greeks and Romans, one of our greatest classical scholars summed up their story as follows: "In the end, more than they wanted freedom, they wanted security, a comfortable life, and they lost all — security and comfort and freedom...when the Athenians finally wanted, not to give to the Society, but the Society to give to them, when the freedom they wished most for was freedom from responsibility, then Athens ceased to be free and was never free again." Let us remember. Let us remember, too, George Washington fs admonition to the new American republic. Liberty and self-government, he said, are "finally staked on the experiment entrusted to the hands of the American people." The stark truth of Washington's statement is being underscored almost' every day by events in the headlines. The imperialist programs of the communist dictatorships represent the greatest challenge to freedom which the world has ever known. The success or failure of that challenge depends very largely on the choices of the American people. Our country will make the right choice; our freedom will be preserved. 0O0 CD H CO CD 50 - 9As publishers and editors of the great newspapers of our Nation, you have more than a working familiarity with the difficulties and dangers involved in Government financing. By giving expression in realistic perspective to the whole panorama of viewpoints on these complex and unromantic areas of the news, you can help millions of Americans obtain a much-needed insight into the nature of our financial responsibilities as a Nation. The Treasury is willing and anxious to give all the help it can in supplying the facts. It is obvious, however, that we must refrain from making public information which is confidential under law, as well as giving out information which would be inappropriate in light of a pending financing or information which might improperly serve to promote speculation in any market. Within these limits we do make information available to the maximum limit. The fact that fiscal matters are little understood — even by some rather prominent and otherwise well-informed people — was brought home to me one day when a visitor in ray office remarked: "You talk of the dangers of monetization of the debt, Mr. Secretary. You know I just don't believe there is such a danger. Probably because I don't quite understand what monetization means!" I said this to my visitor: "Now suppose I wanted to write checks of $100 million starting tomorrow morning, but the Treasury was out of money. If I called up a bank and said, Will you loan me $100 million at 3-1/2$ for 6 months if I send you over a note to that effect, the banker would probably say, Yes, I will. "Where would he get the $100 million with which to credit the account of the United States Treasury? Would he take it from the account of someone else? No, certainly not. He would merely create that much money, subject to reserve requirements, by crediting our account in that sum and accepting the Government's note as an asset. When I had finished writing checks for $100 million the operation would have added that sum to the money supply. Now certainly that approaches the same degree of oOo o <yy CD y ju - 8If it is not — if instead we adopt the philosophy that at no time in our history is anything more required of us than barely breaking even — we begin to cast reasonable doubt upon our willingness to accept the responsibilities which are ours. To ignore the obligation of paying off some part of our debt during prosperous times is contrary to all of our American traditions of good faith and performance. Failure to reduce our debt when we can means passing on the problems of the debt to another generation, which we have no moral right to do. It also means foregoing the restraining effect of budget surpluses on the inflationary pressures that historically exist during periods of high activity. Budget surpluses are effective weapons in our arsenal; we cannot afford to ignore them. The whole world is watching us closely. The countries who are new to democracy, in particular, are observing very carefully the extent to which we practice what we preach. On my trip to and from New Delhi last fall, for the annual meetings of the International Bank and Monetary Fund, I was impressed to discover how well informed foreign officials are about even the details of our fiscal attitudes and position. As we face the problems of our day, we have the comforting realization that we have recently been able to achieve — not without effort — a rather high degree of price stability. The value of the dollar has not decreased in 12 months. The allcommodity index of wholesale prices has been substantially level. We have a substantial amount of unused capacity in basic industries. Nevertheless, I must repeat that in a free economy there is never a complete absence of the inflationary or deflationary threat. There are those who say that in this period of stability no voice should be raised about the dangers of inflation. There are those who say that the realities of the moment should shield us from the disturbing prospects of what future inflation might produce. There are those who say that if we warn against future dangers we are contributors to the inflationary process. What would they have us do? Would they have us ignore the future consequences of what we now propose or do? Such a doctrine must be alien to those of you who have the responsibility of keeping the nation informed as to the problems of today and equally alert to the problems of tomorrow. CO CO CD - 7 - KO y L— and the willingness to exercise flexibility and reversibility, and to constantly pursue the sound objective of maximum employment, reasonable growth, and freedom of economic activity. Recession must not be allowed to develop in a cumulative downward spiral of declining wages and profits, reduced buying, and curtailed employment. These factors, if unimpeded, feed upon each other. Monetary policy, our fiscal system, the utilization of unemployment compensation, and other resources at the command of the Government must be wisely administered in terms of both the short and the long run. By the same token, we must maintain a constant awareness of the dangers of inflation during the upward swing of the cycle. However unpopular, we must be willing to exercise at such a time the restraints which changes in monetary controls, Government fiscal policy, and the maintenance of budgetary surpluses can bring about. We must remember that what we are trying to protect is our way of life. This protection cannot be accomplished by having absolute controls over prices, wages, salaries, choice of occupation, right to expand, and similar activities of a free society. If we resort to such controls we surrender many of our freedoms and threaten others. In a competitive economy which is going to have its adjustments from time to time, how then are we going to assure national security and at the same time pursue a long range policy of economic soundness and the furtherance of human welfare? The Administration is determined to do this, first, by adopting policies which give primary call on our resources and our output to maintaining the physical security of the United States. The determination of what this involves must be made by the one man who has the responsibility for a comprehensive view of the total national effort — the President. After that, we must determine how much of our resources we can afford to give to promoting growth and a rising standard of living, not neglecting the need for a surplus of revenues over expenditures which can be used for debt reduction. We cannot expect such a surplus during periods of readjustment such as we experienced in 1958. But a surplus should be part of our fiscal program during periods of high and rising business activity. en *-* CO CD - 6Such a doctrine I reject I Another false assumption we hear discussed is that deficit financing has little to do with inflation. The fact is that when the Government has to borrow from commercial banks, as is often the case in times of high business activity, such borrowing adds to the money supply by the amount of the borrowing and so increases inflationary pressures. Continued deficits are bound to add to monetary inflation. They are bound to have the same effect, over a period of time, as a resort to printing press money. Today, our gross national product for the first quarter on an annual basis is 465 billions of dollars. Personal income for the first quarter stood at an annual rate of almost 366 billion dollars. Corporate profits for the first quarter of this year are at an all-time high. The Federal Reserve Board index of industrial production has reached 147 — another all-time high. If in a period like this we say to ourselves and to the world that we cannot live within our means, everyone has the right to ask: When do you expect to do so? Finally, one hears from time to time that the efforts to balance the budget are without hope. This assumption I also reject. On the revenue side, we estimated our revenue in January to be 77 billion dollars. Today, I believe there is even more evidence to support this estimate than there was last January. The level of expenditures as submitted in the January budget continues to be sound. I believe that there will be a great deal more said about how we divide the Government's income in the fiscal year i960 than there will be about how much more than our income we as a nation are willing to spend. I have this judgment because I believe that the American people have shown and are showing their determination to pursue prudent policies that help avoid dangerous pressures for either inflation or deflation. In a free economy, we can never wholly eliminate the incidence of inflationary pressures during some periods and recessionary pressures during others. The problem is to walk the narrow path which allows neither to become dominant, to maintain the capacity en •*—'i CO CD - 5- 54 Concern about price inflation during periods of rapid peacetime growth is a relatively new phenomenon. Most of the price inflation in our history has been the accompaniment or the aftermath of ^ war. During the previous century, price inflation was associated with the War of 1812, the panking and credit inflation of the l830's, and the Civil War. In this century, it has been associated with World War I, World War II, and the Korean War. Apart from these temporary periods, our great economic growth since the beginning of the nineteenth century frequently has occurred against the background of a general down trend in prices. This was particularly marked in the late l800's. But it has been evident also in this century. From 1910 to 1915, for example, manufacturing production increased thirty percent while prices showed a moderate decline. During the decade of the 1920's we had one of the most notable periods of sustained economic growth in the history of our country prior to World War II, with national output rising 50 percent in eight years. Yet this decade,was characterized by remarkable price stability. Between 1951 and 1955, a period again characterized by relative stability in the broad indexes of wholesale and consumer prices, we reached the most prosperous levels attained in our economy up to that time. It is not only our experience of the recent and warremote past that demonstrates growth goes hand in hand with stable prices. Any realistic appraisal of continuing instability, with the speculation and the waste that inflation produces, makes it quite clear that this is not the way to attain steady and enduring growth. Then, too, the judgments of business men and investors would be distorted and create maladjustments which could finally result in serious fluctuations in the economy. Also, of course, if serious inflation occurs, public opinion may well demand government controls over almost every facet of our lives. I am confident that this Nation is not now going to adopt a philosophy that inflation is a necessary part of the price of progress. For in addition to what it does to our economic structure, inflation exacts a penalty that would be levied on the pocketbook of every American. It would fall with the most hardship on the wageearner, the self-employed, the teachers, the holders of insurance policies, depositors in savings associations, parents trying to provide for their children's education, those on social security, and others like them. The rich and those with the capacity for self-protection would suffer least. yJ - 46. We must maintain the priceless incentive of confidence in the value of money. 7. We must achieve a budget that is in balance or better during periods of high level activity. 8. We must be willing to seek out the impediments to growth in our economy whether these are found in traditional business practices, in organized labor, in Government subsidy programs, or in any other area. 9. We must encourage the inventiveness and research necessary for new products, new jobs, and improved living standards in a growing economy. 10. We must accept the imposition of discipline and prudent responsibility. 11. We must not passively allow either inflation or deflation to run its course. 12. We must — and by "we" I mean businessmen, workers, investors, and not only officials of Government — make our day-to-day decisions with the welfare of the whole in mind, and not merely the advantage of the moment for some narrow segment. 13. Finally, we must have confidence — and this confidence I have deep faith is well justified — that the American people are wise enough and perceptive enough to support the principles which can leave for your children and mine an America not ravaged by economic turmoil, but full of strength and growth and hope. In sharp contrast to these principles, we are hearing talk today on what I believe to be some false assumptions. One of them is that "a little inflation is good for economic growth". So long as our aim is to increase real wages and real goods and services, I do not believe that any characteristic which could contribute to the debasement of the currency is a desirable ingredient in our economy. OA: CO - 3- *y y It is a task of Government to minimize the impact of such adjustments on the individual, the community, and the Nation. It is our task to prevent a spiraling effect in either direction. To this end, we have established certain stabilizers in our Government. We must have an awareness of — and a readiness to use — all of the instrumentalities of Government to prevent undesirable cumulative effects and to .soften the impact on every-segment of society, we must strive continually to reduce the levels of unemployment. The utilization of these instrumentalities available to us, however must be judged in the context of both the short- and long-range effects. We must remember that although the Government has a number of responsibilities when the economy moves too far in either direction, we are essentially a Nation of private, competitive enterprise. The course our economy will pursue is finally determined by the multitudes who engage in every phase of productive activity and of consumption. The Government taxes and spends and, therefore, plays an important role in the economy. Its influence is felt both through direct demand for goods and services and through the effect of Government requirements on the amounts available for other consumers to buy. However, measured against the scale of national earnings and national consumption, the Government role is not the primary one. The rate of our growth and the development of our capacity to meet the expanding demands of our economy as a whole are still essentially anchored to the growth and the development of private business and industry. In considering the task which this imposes on our free enterprise system, I should like to suggest certain guiding principles which I believe should be a part of our basic thinking. 1. We must realize that long-term economic growth in real terms can be achieved not with but only without inflation. 2. We must strive for an achievable rate of relatively constant growth — not a succession of sharp ups and downs. 3. We must not, as we come out of a recession, seek to force the economy into a quick boom which can later injure our long-run capacity to produce. 4. We must put major reliance upon the private sector of the economy to increase production. 5. We must give maximum free rein to incentives to save, to work, to produce, to invest. - 2- £7 _> i Rome is a classic example. But we need not go that far back in history. One has only to look at what happened in Germany after the downfall of the Kaiser. One has only to look at the economic problems which have faced some other European countries — not newcomers to democracy — in recent years. In the rest of the world, too, are countries which in their efforts to effect rapid economic changes have sacrificed financial soundness. In these countries we may see the dramatic symbols — impressive installations, public works, large buildings. But meanwhile, in all too many instances, the standard of living for the average man has remained low. Prices have gone up. Disease is a scourge. Job opportunities and job security are lacking. The savings which could lead to a better use of both resources and labor sometimes are not forthcoming. In the United States we have an abundance of resources, skilled manpower, technological capacity. These are vital. But we must relate them to the well-being of people. We are dedicated to maximum employment. We are equally dedicated to growth in real terms. We are determined to maintain a free economy. These goals are consistent with and contribute to each other. Every economy is an exercise in change. Growth is the process of the development and expansion of economic segments. Each day sees a new horizon of accomplishment; tomorrow it becomes a part of our economic fabric. The process takes place when there is a climate of confidence — where there is free play for initiative and incentive. The foundation is the willingness of people to save and invest; the ambition of workers for self betterment that flows from the right to choose occupations and to bargain for a fair share of the product. The factor of competition provides a basic insurance against exploitation. It is a motivating drive toward making the best use of new inventions and new processes. It lies at the root of satisfying real demands with the goods and services people want and will work to acquire. Growth in a competitive society is historically uneven. Members of the same industry tend to expand or contract at the same time in order to maintain competitive positions. There are frequent shifts in geographical areas of operations that bring additional dislocations, In any given period, differing industries may be exhibiting very different patterns of growth or decline. When a pattern of expansion or retraction becomes general in a number of industries and interests, the economy is characterized by inflationary or recessionary trends. CO CO CD _/ y> TREASURY DEPARTMENT Washington FOR RELEASE P.M. NEWSPAPERS, MONDAY, APRIL 20, 1959. REMARKS BY TREASURY SECRETARY ROBERT B. ANDERSON AT ASSOCIATED PRESS LUNCHEON, WALDORF ASTORIA HOTEL, NEW YORK CITY, 1:00 P.M., E.S.T., MONDAY, APRIL 20, 1959. This country can have a bright economic future; it can have it without inflation. This country cannot have an enduring bright economic future with inflation. This is a principal tenet of my belief. It is a faith I should like to examine with you in historic perspective and as a basis for future real growth in our Nation. Demosthenes once said: "The time for extracting a lesson from history is ever at hand for them who are wise". Surely the world has never been in greater need of wisdom than now. The history of every nation is in fact the fruition of the lives and beliefs and ideas of men. Almost 500 years before the birth of Christ, another great leader of the Greek people urged his fellow citizens to "remember'that prosperity can be only for the free, and that freedom is the sure possession of those alone who have courage to defend it." We are dedicated to security that we may preserve freedom. Long term security must rely on sound economic growth to support it. Should we impair either military security or economic growth in our efforts to achieve both, we shall have failed in our trust. The story of a nation's downturn has been in one way or another the chronicle of its unwillingness to face reality. Time and again, the choice has been made of an apparent easy way out. People have been misled by a seeming innovation in government or finance, by a misguided leader, or simply through accepting the notion that undesirable developments are inevitable. They have listened to promises that unromantic hard work can be done away with and that difficult problems can be pushed aside. Where have these choices led? There is no lack of answers. A-503 TREASURY DEPARTMENT Washington 5g ^ FOR RELEASE P.M. NEWSPAPERS, MONDAY, APRIL 20, 1959. REMARKS BY TREASURY SECRETARY ROBERT B. ANDERSON AT ASSOCIATED PRESS LUNCHEON, WALDORF ASTORIA HOTEL, NEW YORK CITY, 1:00 P.M., E.S.T'., MONDAY, APRIL 20, 1959. This country can have a bright economic future; it can have it without inflation. This country cannot have an enduring bright economic future with inflation. This is a principal tenet of my belief. It is a faith I should like to examine with you in historic perspective and as a basis for future real growth in our Nation. Demosthenes once said: "The time for extracting a lesson from history is ever at hand for them who are wise". Surely the world has never been in greater need of wisdom than now. The history of every nation is in fact the fruition of the lives and beliefs and ideas of men. Almost 500 years before the birth of Christ, another great leader of the Greek people urged his fellow citizens to "remember"that prosperity can be only for the free, and that freedom is the sure possession of those alone who have courage to defend it." We are dedicated to security that we may preserve freedom. Long term security must rely on sound economic growth to support it. Should we impair either military security or economic growth in our efforts to achieve both, we shall have failed in our trust. The story of a nation's downturn has been in one way or another the chronicle of its. unwillingness to face reality. Time and again, the choice has been made of an apparent easy way out. People have been misled by a seeming innovation in government or finance, by a misguided leader, or simply through accepting the notion that undesirable developments are inevitable. They have listened to promises that unromantic hard work can be done away with and that difficult problems can be pushed aside. Where have these choices led? There is no lack of answers. A-503 - 60 - 2 Rome is a classic example. But we need not go that far back in history. One has only to look at what happened in Germany after the downfall of the Kaiser. One has only to look at the economic problems which have faced some other European countries — not newcomers to democracy — in recent years. In the rest of the world, too, are countries which in their efforts to effect rapid economic changes have sacrificed financial soundness. In these countries we may see the dramatic symbols — impressive installations, public works, large buildings. But meanwhile, in all too many instances, the standard of living for the average man has remained low. Prices have gone up. Disease is a scourge. Job opportunities and job security are lacking. The savings which could lead to a better use of both resources and labor sometimes are not forthcoming. In the United States we have an abundance of resources, skilled manpower, technological capacity. These are vital. But we must relate them to the well-being of people. We are dedicated to maximum employment. We are equally dedicated to growth in real terms. We are determined to maintain a free economy. These goals are consistent with and contribute to each other. Every economy is an exercise in change. Growth is the process of the development and expansion of economic segments. Each day sees a new horizon of accomplishment; tomorrow it becomes a part of our economic fabric. The process takes place when there is a climate of confidence — where there is free play for initiative and incentive. The foundation is the willingness of people to save and invest; the ambition of workers for self betterment that flows from the right to choose occupations and to bargain for a fair share of the product. The factor of competition provides a basic insurance against exploitation. It is a motivating drive toward making the best use of new inventions and new processes. It lies at the root of satisfying real demands with the goods and services people want and will work to acquire.1 Growth in a competitive society is historically uneven. Members of the same industry tend to expand or contract at the same time in :; brder to maintain competitive positions. There are frequent shifts in geographical areas of operations that bring additional dislocations. In any given period, differing industries may be exhibiting very different patterns of growth or decline. When a pattern of expansion or retraction becomes general in a number of industries and interests, the economy is characterized by inflationary or recessionary trends. D_. - 3It is a task of Government to minimize the impact of such adjustments on the individual, the community, and the Nation. It is our task to prevent a spiraling effect in either direction. To this end, we have established certain stabilizers in our Government. We must have an awareness of — and a readiness to use — all of the instrumentalities of Government to permit undesirable cumulative effects and to soften the impact on every segment of society. We must strive continually to reduce the levels of unemployment. The utilization of these instrumentalities available to us, however, must be judged in the context of both the short- and long-range effects. We must remember that although the Government has a number of responsibilities when the economy moves too far in either direction, we are essentially a Nation of private, competitive enterprise. The course our economy will pursue is finally determined by the multitudes who engage in every phase of productive activity and of consumption. The Government taxes and spends and, therefore, plays an important role in the economy. Its influence is felt both through direct demand for goods and services and through the effect of Government requirements on the amounts available for other consumers to buy. However, measured against the scale of national earnings and national consumption, the Government role is not the primary one. The rate,of our growth and the development of our capacity to meet the expanding demands of our economy as a whole are still essentially anchored to the growth and the development of private business and industry. In considering the task which this imposes on our free enterprise system, I should like to suggest certain guiding principles which I believe should be a part of our basic thinking. 1. We must realize that long-term economic growth in real terms can be achieved not with but only without inflation. 2. V/e must strive for an achievable rate of relatively constant growth — not a succession of sharp ups and downs. 3. We must not, as we come out of a recession, seek to force the economy into a quick boom which can later injure our long-run capacity to produce. 4. We must put major reliance upon the private sector of the economy to increase production. 5. V/e must give maximum free rein to incentives to save, to work, to produce, to invest. 62 - 4 - c 6. We must maintain the priceless incentive of confidence in the value of money. 7. We must achieve a budget that is in balance or better during periods of high level activity. 8. V/e must be willing to seek out the impediments to growth in our economy whether these are found in traditional business practices, in organized labor, in Government subsidy programs, or in any other area. 9. We must encourage the inventiveness and research necessary for new products, new jobs, and improved living standards in a growing economy. 10. We must accept the imposition of discipline and prudent responsibility. 11. We must not passively allow either inflation or deflation to run its course. 12, We must — and by "we" I mean businessmen, workers, investors, and not only officials of Government — make our day-to-day decisions with the welfare of the whole in mind, and not merely the advantage of the moment for some narrow segment. 13. Finally, we must have confidence — and this confidence I have deep faith is well justified — that the American people are wise enough and perceptive enough to support the principles which can leave for your children and mine an America not ravaged by economic turmoil, but full of strength and growth and hope. In sharp contrast to these principles, we are hearing talk today on what I believe to be some false assumptions. One of them is that "a little inflation is good for economic growth". So long as our aim is to increase real wages and real goods and services, I do not believe that any characteristic which could contribute to the debasement of the currency is a desirable ingredient in our economy. 63 - 5Concern about price inflation during periods of rapid peacetime growth is a relatively new phenomenon. Most of the price inflation in our history has been the accompaniment or the aftermath of war. During the previous century, price inflation was associated with the War of 1812, the banking and credit inflation of the l830!s, and the Civil War. In this century, it has been associated with World War I, World War II, and the Korean War. Apart from these temporary periods, our great economic growth since the beginning of the nineteenth century frequently has occurred against the background of a general down trend in prices. This was particularly marked in the late l800's. But it has been evident also in this century. From 1910 to 1915* for example, manufacturing production increased thirty percent while prices showed a moderate decline. During the decade of the 1920's vie had one of the most notable periods of sustained economic growth in the history of our country prior to V/orld War II, with national output rising 50 percent in eight years. Yet this decade was characterized by remarkable price stability. Between 1951 and 1955, a period again characterized by relative stability in the broad indexes of wholesale and consumer prices, we reached the most prosperous levels attained in our economy up to that time. It is not only our experience of the recent and warremote past that demonstrates growth goes hand in hand with stable prices. Any realistic appraisal of continuing instability, with the speculation and the waste that inflation produces, makes it quite clear that this is not the way to attain steady and enduring growth. Then, too, the judgments of business men and investors would be distorted and create maladjustments which could finally result in serious fluctuations in the economy. Also, of course, if serious inflation occurs, public opinion may well demand government controls over almost every facet of our lives. I am confident that this Nation is not now going to adopt a philosophy that inflation is a necessary part of the price of progress. For in addition to what it does to our economic structure, inflation exacts a penalty that would be levied on the pocketbook of every American. It would fall with the most hardship on the wageearner, the self-employed, the teachers, the holders of insurance policies, depositors in savings associations, parents trying to provide for their children's education, those on social security, and others like them. The rich and those with the capacity for self-protection would suffer least. - 6- 64 Such a doctrine I reject J Another false assumption we hear discussed is that deficit financing has little to do with inflation. The fact is that when the Government has to borrow from commercial banks, as is often the case in times of high business activity, such borrowing adds to the money supply by the amount of the borrowing and so increases inflationary pressures. Continued deficits are bound to add to monetary inflation. They are bound to have the same effect, over a period of time, as a resort to printing press money. Today, our gross national product for the first quarter on an annual basis is 465 billions of dollars. Personal income for the first quarter stood at an annual rate of almost 366 billion dollars. Corporate profits for the first quarter of this year are at an all-time high. The Federal Reserve Board index of industrial production has reached 147 — another all-time high. If in a period like this we say to ourselves and to the world that we cannot live within our means, everyone has the right to ask: When do you expect to do so? Finally, one hears from time to time that the efforts to balance the budget are without hope. This assumption I also reject. On the revenue side, we estimated our revenue in January to be 77 billion dollars. Today, I believe there is even more evidence to support this estimate than there was last January. The level of expenditures as submitted in the January budget continues to be sound. I believe that there will be a great deal more said about how we divide the Government's income in the fiscal year I960 than there will be about how much more than our income we as a nation are willing to spend. I have this judgment because I believe that the American people have shown and are showing their determination to pursue prudent policies that help avoid dangerous pressures for either inflation or deflation. In a free economy, we can never wholly eliminate the incidence of inflationary pressures during some periods and recessionary pressures during others. The problem is to walk the narrow path which allows neither to become dominant, to maintain the capacity 65 - 7and the willingness to exercise flexibility and reversibility, and to constantly pursue the sound objective of maximum employment, reasonable growth, and freedom of economic activity. Recession must not be allowed to develop in a cumulative downward spiral of declining wages and profits, reduced buying, and curtailed employment. These factors, if unimpeded, feed upon each other. Monetary policy, our fiscal system, the utilization of unemployment compensation, and other resources at the command of the Government must be wisely administered in terms of both the short and the long run. By the same token, we must maintain a constant awareness of the dangers of inflation during the upward swing of the cycle. However unpopular, we must be willing to exercise at such a time the restraints which changes in monetary controls, Government fiscal policy, and the maintenance of budgetary surpluses can bring about. We must remember that what we are trying to protect is our way of life. This protection cannot be accomplished by having absolute controls over prices, wages, salaries, choice of occupation, right to expand, and similar activities of a free society. If we resort to such controls we surrender many of our freedoms and threaten others. In a competitive economy which is going to have its adjustments from time to time, how then are we going to assure national security and at the same time pursue a long range policy of economic soundness and the furtherance of human welfare? The Administration is determined to do this, first, by adopting policies which give primary call on our resources and our output to maintaining the physical security of the United States. The determination of what this involves must be made by the one man who has the responsibility for a comprehensive view of the total national effort — the President. After that, we must determine how much of our resources we can afford to give to promoting growth and a rising standard of living, not neglecting the need for a surplus of revenues over expenditures which can be used for debt reduction. We cannot expect such a surplus during periods of readjustment such as we experienced in 1958. But a surplus should be part of our fiscal program during periods of high and rising business activity. If it is not — if instead we adopt the philosophy that at no time in our history is anything more required of us than barely breaking even — we begin to cast reasonable doubt upon our willingness to accept the responsibilities which are ours. To ignore the obligation of paying off some part of our debt during prosperous times is contrary to all of our American traditions of good faith and performance. Failure to reduce our debt when we can means passing on the problems of the debt to another generation, which v/e have no moral right to do. It also means foregoing the restraining effect of budget surpluses on the inflationary pressures that historically exist during periods of high activity. Budget surpluses are effective weapons in our arsenal; v/e cannot afford to ignore them. The whole world is watching us closely. The countries who are new to democracy, in particular, are observing very carefully the extent to which we practice what v/e preach. On my trip to and from New Delhi last fall, for the annual meetings of the International Bank and Monetary Fund, I was impressed to discover how well informed foreign officials are about even the details of our fiscal attitudes and position. As we face the problems of our day, we have the comforting realization that we have recently been able to achieve — not without effort — a rather high degree of price stability. The value of the dollar has not decreased in 12 months. The allcommodity index of wholesale prices has been substantially level. We have a substantial amount of unused capacity in basic industries. Nevertheless, I must repeat that in a free economy there is never a complete absence of the inflationary or deflationary threat. There are those who say that in this period of stability no voice should be raised about the dangers of inflation. There are those who say that the realities of the moment should shield us from the disturbing prospects of what future inflation might produce. There are those who say that if we warn against future dangers v/e are contributors to the inflationary process. What would they have us do? Would they have us ignore the future consequences of what we now propose or do? Such a doctrine must be alien to those of you who have the responsibility of keeping the nation informed as to the problems of today and equally alert to the problems of tomorrow. As publishers and editors of the great newspapers of our Nation, you have more than a working familiarity with the difficulties and dangers involved in Government financing. By giving expression in realistic perspective to the whole panorama of viewpoints on these complex and unromantic areas of the news, you can help millions of Americans obtain a much-needed insight into the nature of our financial responsibilities as a Nation. The Treasury is willing and anxious to give all the help it can in supplying the facts. It is obvious, hov/ever, that we must refrain from making public information which is confidential under law, as well as giving out information which would be inappropriate in light of a pending financing or information which might improperly serve to promote speculation in any market. V/ithin these limits we do make information available to the maximum limit. The fact that fiscal matters are little understood — even by some rather prominent and otherwise well-informed people — was brought home to me one day when a visitor in my office remarked: "You talk of the dangers of monetization of the debt, Mr. Secretary. You know I just don't believe there is such a danger. Probably because I don't quite understand what monetization meansi" I said this to my visitor: "Now suppose I wanted to write checks of $100 million starting tomorrow morning, but the Treasury was out of money. If I called up a bank and said, Will you loan me $100 million at 3-1/2$ for 6 months if I send you over a note to that effect, the banker would probably say, Yes, I will. "Where would he get the $100 million with which to credit the account of the United States Treasury? Would he take it from the account of someone else? No, certainly not. He would merely create that much money, subject to reserve requirements, by crediting our account in that sum and accepting the Government's note as an asset. When I had finished writing checks for $100 million the operation would have added that sum to the money supply. Now certainly that approaches the same degree of -lo- ss monetization as if I had called down to the Bureau of Engraving and Printing and said, 'Please print me up $100 million worth of greenbacks which I can pay out tomorrow.'" At this point my visitor broke in to say, "Oh, I would be against printing those greenbacks I" There are many lessons to be learned from the history — and particularly from the history of man's struggle to achieve and maintain human freedom. But one lesson stands out: Each generation must have the wisdom, the courage, and the toughness to accept the responsibilities which are uniquely theirs. If they do not — if difficult problems are pushed aside — the generations that follow will surely pay the price. Alfred North Whitehead has said that every epoch has its character determined by the way its population reacts to the material events they encounter. They may rise to greatness — or they may collapse. In writing of the Greeks and Romans, one of our greatest classical scholars summed up their story as follows: "In the end, more than they wanted freedom, they wanted security, a comfortable life, and they lost all — security and comfort and freedom...When the Athenians finally wanted, not to give to the Society, but the Society to give to them, when the freedom they wished most for was freedom from responsibility, then Athens ceased to be free and was never free again." Let us remember. Let us remember, too, George Washington's admonition to the new American republic. Liberty and self-government, he said, are "finally staked on the experiment entrusted to the hands of the American people." The stark truth of Washington's statement is being underscored almost every day by events in the headlines. The imperialist programs of the communist dictatorships represent the greatest challenge to freedom which the world has ever known. The success or failure of that challenge depends very largely on the choices of the American people. Our country will make the right choice; our freedom will be preserved. oOo ffl? £9 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bill's are sold, redeemed or otherwise disposed of, and such bills ar cluded 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, whe oh original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return 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- supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incor- porated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 p cent of the face amount of Treasury bills applied for, unless the tenders are ac panied by an express guaranty of payment by an incorporated bank or trust compan 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 o all tenders, in whole or in part, and his action in any such respect shall be fi Subject to these reservations, noncompetitive tenders for $200,000 or less for t additional bills dated January 29. 1959 J (91 days remaining until maturity date on July 30. 1959 ,) and noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full the average price (in three decimals) of accepted competitive bids for the respe tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 50. 1959 y in cash or X__K_& other immediately available funds or in a like face amount of Treasury bills maturing April 50, 1959 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 los TREASURY DEPARTMENT Washington 3®lg_QtoDQ__3^^ RELEASE A.M. NEWSPAPERS, Thursday, April 25, 1959 ______ • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000 , or thereabouts, for cash and in exchange for Treasury bills maturing April 50. 1959 , in the amount of $1,599,275,000 , as follows: 91 -day bills, (to maturity date) for $1,000.000,000 , or thereabouts, representing an additional amount of bills dated January 29, uary 1959 _i, and to mature July 50, 1959 , and to be freely interchangeable therewith. X0_XX 182 -day bills, for $ 400,000,000 y or thereabouts, to be dated April 50, 1959 y and to mature October 29, 1959 TK5c ®ST The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/_dja_j__jas_: time, Monday, April 27, 1959 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 t 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 7 TREASURY DEPARTMENT -"" ii|-nw.i.i..iiiiiii-.i8a——,__,—,———BB_BBBW_M_MB_««—«_WW"~*~"'~""1—P~«~~~~~ WASHINGTON. D.C RELEASE A.M. NEWSPAPERS, Thursday, April 23, 1959. A-504 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 30, 1959* in the amount of $1,399,273,000, as follows: 91-day bills, (to maturity date) for $1,000,000,000, or thereabouts, representing an additional amount of bills dated January 29, 1959, and to mature July 30, 1959, and to be freely interchangeable therewith. 182-day bills, for $400,000,000, or thereabouts, to be dated April 30, 1959, and to mature October 29, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 Daylight Saving time, Monday, April 27, 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 •Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of "the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated January 29, 1959, (91 days remaining until maturity date on July 30, 1959) and noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on April 30, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing April 30, 1959. 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 oOo or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe theor terms of and govern from the conditions of their Reserveissue. Bank Copies Branch. ofthe theTreasury circularbills may be obtained any Federal 73 < /n HELM.SF A. M. Nl-vSPAPr'.RS, Tuesday. April 28, 195?. The TreasuryDepartment aniio-i^d last evesiing that the Uader® for-two ffffjftM <$;^ w .• : be i Treasury bills,-one aeries to be an .additional issue ©f the bills dated 4mmm^y •2?9$$g&i ... " ->• ' :r and the other series to be dated April 30, 19599 which were offered,;©*! April Z3^.i*mrm opt-nad at the Federal Reserve Banfcs ©n April 27. Tenders', were _ invited for. |i,O00#0O or thereabouts, of 91-day bills and tor HjaO,OO0,00O, or thereabouts, of 182-day bil&i. The (Retails of the two series are as follows? 3ASGE Of ACCEPTED COMPETITIVE 3IISs 91~day Treasury bills si&taring July 30, 1959 Price Approx. 'Begot*. Annual Bate iUM»l..i High tow Aversre IM.I. Price Approx • Mqzifi Annual" Rate ..H. I .»II1II I .I..M. z*mi$ 99*m 99.m 99*2®k 182-day Treasury-,MH& maturing .October ._9, '1959 2.B36% 9B.39U 98.382 3.200JI 3_lB9_t 8S percent of the mount of f 1-day bijli fcid^for at the low price was accep-ea 60 percent of the amount of X & « d « y o i U s bid for at the loir price was accepted TOTAL TEimElS APPLET f0» AND ACCEPTS!- BT' FKP£RAL RESERVE PISTBICTS.j District Applied For Boston-' Hew York Philadelphia Cleveland Richmond ^ Atlanta : Chicftpo St. tOUiB Mixmeapolis Kansas City •Villas San Francisco # 27,857,000 I,ii2ti,6l8,000 26,535,000 1*0,866,000 l_j,l51,000 26,365,000 203,71*2,000 2_,6ih,0QO 8,671,000 ii0,030,000 1 15,1*22,300 66,108,000 TOTALS $1,926,979,900 Accepted, 17,Olt7.000 635,7614,000 11,075,000 33,650,000 13,85^,000 21,883,000 11*5,5*7,000 19,lUt,000 r,3H,000. 27,im9p00' 18,887,000 50,758,000 r *i;O02?dii5,OOQ!/ Applied lor - Accepted.^ -!:1 "t" .7,334,000 ! 7C^,78l4,000 12,0^7,000 5>, 310,000 3,1*61,000 2,267,000. 86,069,000 6,263,000 2,506,001^61*0,000 1,930,000 25,8014,000 I 7,lBli^00 I862,66ito) 3,1*10,000 3,26^,000 l,556,ooo l6,_JL$,0QQ. ^.,106,000 l*>057,000 "l,736,00d 7,838,000 J, ^00,216,00^: _/ Includes ?2iiO,ii78,O0O noncompetitive tenders' accepted at the Average price" of ?9".-8li & Includes $21,366,000 noncompetitive tenders accepted at the average price of 98.388 • ab?V TREASURY DEPARTMENT W A S H I N G T O N , D.C. RELEASE A . M . NEWSPAPERS, A-5o5 April 28, 1959. Tuesday, The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated January 29, and the other series to be dated April 30, 1959, which were offered on April 23, we opened at the Federal Reserve Banks on April 27. Tenders were invited for §1,000,00 or thereabouts, of 91-day bills and for #l|O0,000,000, or thereabouts, of 182-day b The details of the two series are as follows: RANGE OF ACCEPTED COMPETITIVE BIDS: Price High Low Average 182-day Treasury bills maturing October 29, 1959 91-day Treasury bills maturing July 30, 1959 Approx. Equiv. Annual Rate 2.801$ 2.Q36% 2.831%' 99.292 99.233 99.28k j i Price i 98.39^ i 98.3*8 Approx. Equiv. Annual Rate 3.177£ 3.200£ 3.189£ 85 percent of the amount of 91-day bills bid for at the low pi ice was accepted 60 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AMD ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted j Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 27,857,000 I,ii2ii,6l8,000 26,535,000 1*0,866,000 $ I• t 7,33^,000 :• 700,7814,000 12,097,000 • J 9,310,000 3,l46i;,000 s 2,267,000 : 86,069,000 : 6,263,000 2,506,000 ; : 14,81*0,000 : 1,930,000 25,8014,000 « TOTALS iU,i5i,ooo 26,365,000 203,71*2,000 22,6lii,000 8,671,000 l|0,030,000 25,1*22,000 66,108,000 $1,926,979,000 17,Oli7,000 635,761i,000 11,075,000 33,650,000 13,851^000 21,883,000 115,597,000 19,11^,000 7,311,000 27,105,000 18,887,000 50,758,000 #1,002,0li5,00Q_/j Applied For #862,668,000 Accepted $ 7,1814,000 3140,1314,000 6,559,000 3,iao,ooo 3,2614,000 1,556,000 16,115,000 6,263,000 2,106,000 14,057,000 1,730,000 7,838,000 £Ji00,2l6,000]>/ / Includes C'2ijO,_i.78,000 noncompetitive tenders accepted at the average price of 99.?8U / Includes $21,366,000 noncompetitive tenders accepted at the average price of 98.388 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded 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, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return 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. - 2decimals, 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 ex- cept for their own account. Tenders will be received without deposit from incorpo- rated banks and trust companies and from responsible and recognized dealers in inv ment securities. Tenders from others must be accompanied by payment of 2 percent o the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting 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 tender 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 for the additional bills dated February 5, 1959 p_q[ y ( 91 days remaining until maturity date on psqc August 6, 1959 ) and noncompetitive tenders for $50,000 or less for the §__fck ]$_____ X82 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 7, 1959 , in cash or $GI_Q_ other immediately available funds or in a like face amount of Treasury bills maturing May 7, 1959 • Cash and exchange tenders will receive equal treatment. s£-& 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 77 TREASURY DEPARTSlEi.T Washington i RELEASE A. M. NEWSPAPERS, Thursday, April 50, 1959 The Treasury Department, by this public notice, invites tenders for two series of Treasury hills to the aggregate amount of $1,400,000,000 , or thereabouts, fo cash and in exchange for Treasury bills maturing May 7.^1959 y in tne ^^oxmt of $ 1,599,754,000 , as follows: 91 -day bills (to maturity date) to be issued » May 7. 1959 y in the amount of $ 1,000,000,000 , or thereabouts, representing an additional amount of bills dated February 5. 1959 y and to mature August 6, 1959 , originally issued in the amount of $599,912,000 , the additional and original bills ]pKKJ to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated 55-15 <m& May 7, 1959 , and to mature ffovember 5. 1959 ^KHJC _($_& The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face am 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 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/_tfic_r»tomt time, Monday, May 4, 1959 """" pi? " 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 th ^-rice offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, Thursday, April 30, 1959. A-506 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing May 7, 1959, in the amount of $1,399,734,000, as follows: 91-day bills (to maturity date) to be issued May 7, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills dated February 5, 1959, and to mature August 6, 1959, •* originally issued in the amount of $399,912,000, the additional and original bills to be freely interchangeable. 182-day bills, for $ 400,000,000, or thereabouts, to be dated May 7, 1959, and to mature November 5, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 Daylight Saving time, Monday, May 4, 1959. . Tenders will not be rece'ived 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 bill3 applied Top, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 •f-io T_Immedlately after the closing hour, tenders will be opened at tne rederal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be ^ V 1 m e d ° f t h e a c c e P t a n c e or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or & i T^ e ? d e r S " i n w h o l e o r i n Part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated February 5, 1959, (91 days remaining until maturity date on August 6, 1959) and noncompetitive tenders for $ 50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 7, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 7, 1959. 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 oOothe taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe Federal of theirReserve issue. the terms Bank Copies of orthe Branch. of Treasury the circular bills may and begovern obtained thefrom conditions any Thursday, April 30, 1359. • 1&e Treiwsury B e p a r t ^ mturity the $a.7 billion of special Treasury bills issued ®etebe-* S, l i i % , mturlng May 15, 19S@, aad the #1-8 billion of 1-1/* percent certificates^ "of indebtedness issued June 15, 1958, maturing May 15, lfS0> and for raising new cash funds estimated to be required for the balance of the time*! year.The $2.7 billion of special Treasury hill® ssaturing M_y IS will be redeaned for cash on that date, A further step in the Treasury's program to establish a patters of l-$%ar Treasury Bill mturltlea with <parterly dates in January, April, #tfy-*M: October, %AXX be taken with en offering of AS. billion, or thereal^ttfcs,^ S40«day Treasury hills to be dated Hay 11, 19Si> end to stature April 1$,. i960 fenders will be received at Inderal Beserve Banks and Branches up to the ^ closing hour, one-thirty o'clock p.m., lastem Baylight Saving tiney on10'5 Wednesday, Hay 6, 1959, for this offering, Any qualified depositary 'will be permitted to siske psyatant by credit in its Treasury Tase and Loan A«abtf_ji£ 3 for Treasury bills of this issue* Worn Treasury mil also receive tenders oa Thursday, Way 7, up to the closing hour, one-thirty o'eloeic p.a., Sastern ©aylight Saving tiise/ -for an offering of 321«day tax anticipation treasury bills la the asaount of '$i.S": billion, or thereabouts, to be dated Hay 15, X9S9, aad to mature BeGetaber" _22, 1339. These bills will be aeeepted at lace value in payment of ineasis'etid* profits taseee dase oa ©ee«teer IS, 1059, and to the extent -they are not |>re^ seated for this purpose the face mmmmt of the M i l s will be payable without;; interest at maturity, f^gnmt for Treasury bills of this issue mmt bm^imM1 in cash er other iwediately aval-Able funis oa May IS. Full details of the two Treasury bill offerings are being made public -'today. All subscribers to the two issues of Treasury bills are required to agree set t© purchase or sail or to mAkm my agreeaMmts with respect to/the purchase or sale or other disposition of the bills subscribed for usxtil ^ffcer, trie closing hour for tenders on May © and Heiy 7, respectively. The treasury vill announce late Thursday, Sfety 7, an offering.. Qf a 1-yea** certificate of indebtedness to be dated my 15, 108&>;.'*nd to nature jfey 13; I960, in e3iehange for the $1.0 billion of i-l/4 percent ^certificates of indebtedness mturlng May 15- The subscription brnlm will be open only on Hay 11 and May 12 for the receipt of subscriptions fbr this 'issue''i * Any subscription for the new certificates addressed to''a federal Beserve Bank or Branch or to the treasurer of the tfeited States and placed in the snail before midnight Hay 12. will be considered as tiajely. TREASURY DEPARTMENT 80 WASHINGTON, D.C. FOR IMMEDIATE RELEASE, Thursday, April 50, 1959. A-507 The Treasury Department announced today its program for meeting at maturity the $2.7 billion of special Treasury bills issued October 8, 1958, maturing May 15, 1959, and the $1.8 billion of 1-1/4 percent certificates of indebtedness issued June 15, 1958, maturing May 15, 1959, and for raising new cash funds estimated to be required for the balance of the fiscal year. The $2.7 billion of special Treasury bills maturing May 15 will be redeemed for cash on that date. A further step in the Treasury's program to establish a pattern of 1-year Treasury Bill maturities with quarterly dates in January, April, July and October, will be taken with an offering of $2 billion, or thereabouts, of 340-day Treasury bills to be dated May 11, 1959, and to mature April 15, 1960. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving time, on Wednesday, May 6, 1959, for this offering. Any qualified depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for Treasury bills of this issue. The Treasury will also .receive tenders on Thursday, May 7, up to the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving time, for an offering of 221-day tax anticipation Treasury bills in the amount of $1.5 billion, or thereabouts, to be dated May 15, 1959, and to mature December 22, 1959. These bills will be accepted at face value in payment of income and profits taxes due on December 15, 1959, and to the extent they are not presented for this purpose the face amount of the bills will be payable without interest at maturity. Payment for Treasury bills of this issue must be made in cash or other immediately available funds on May 15; Full details of the two Treasury bill offerings are being made public today. All subscribers to the two issues of Treasury bills are required to agree not to purchase or sell or to^make any agreements with respect to the purchase or sale or other disposition of the bills subscribed for until after the closing hour for tenders on May 6 and May 7, respectively. The Treasury will announce late Thursday, May 1, an offering of a 1-year certificate of indebtedness to be dated May 15, 1959, and to mature May 15, 1960, in exchange for the $1.8 billion of 1-1/4 percent certificates of indebtedness maturing May 15. The subscription books will be open only on May 11 and May 12 for the receipt of subscriptions for this issue. Any subscription for the new certificates addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United States and placed in the mail before midnight May 12 will be considered as timely. -3- 81 -_-_BgD8__3E-tH_-L local taxing authority. _br 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. 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 __>^a»^ifciM#f 82 All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills Daylight Saving of this issue, until after one-thirty o'clock p.m., Eastern/to-3fea_t time, w_<*nesday, May 6, 1959 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 submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in thre decimals) of accepted competitive bids. Payment of accepted tenders at the price offered must be made or completed at the Federal Reserve Bank in cash or other i mediately available funds on May 11, 1959 , provided, however, any qualified P5 ' depositary will be permitted to make payment, by credit in its Treasury tax and loan account for Treasury bills allotted to it for Itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so no fied by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether Interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and los 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any 8 ./ B-MX-tti-Oaa; M^MXJQ____3E__D_fc TREASURY DEPARTMENT Washington IMMEDIATE RELEASE, Thursday, April 30, 1959 The Treasury Department, by this public notice, invites tenders for $ 2,000,000,000 , or thereabouts, of 340 -day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided. The bills of this series will be dated May 11, 195>9 ___, and will -_PB mature April 15, I960 , when the face amount will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, v $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 closDaylight Saving ing hour, one-thirty o'clock p.m., Eastern/igSaaatgHKat time, Wednesday, May 6, 1959 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 t price offered must be expressed on the basis of 100, with not more than three de imals, e. g., 99.925. Fractions may not be used. It is urged that tenders be mad on the printed forms and forwarded in the special envelopes which will be suppli 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 incorporate banks and trust companies and from responsible and recognized dealers in invest securities. Tenders from others must be accompanied by payment of 2 percent of t 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. IMMEDIATE RELEASE, Thursday, April 30, 1959. A-508 The Treasury Department, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 3^0-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated May 11, 1959, and will mature April 15, i960, 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 Daylight Saving time, Wednesday, May 6, 1959. 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. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this Issue, until after one-thirty o'clock p.m., Eastern Daylight Saving time, Wednesday, May 6, 1959. 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 price accept or any or all tenders, final. $400,000 in wholeSubject or less in part, to without these and reservations, his stated action infrom noncompetitive anyreject any suchone respect bidder tenders shall will be for be - 2 accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on May 11, 1959, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of- 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest 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 in 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 - 3- 3f^jg_&___@e& 85 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 speci treatment, as such, under the Internal Revenue Code of 1954. The bills are subjec 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 interes 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou of discount at which bills issued hereunder are sold is not considered to accrue such bills are sold, redeemed or otherwise disposed of, and such bills are exclud 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 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- __I___£K3_XXBEB_ 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 investme securities. Tenders from others must be accompanied by payment of 2 percent of th face amount of Treasury bills applied for, unless the tenders are accompanied by express guaranty of payment by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills Daylight Saving of this issue, until after one-thirty o'clock p.m., Eastern j_J_*a_U_a_ time, Thursday, May 7, 1959 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $U00JL000__ or less without stated _$_dkjt price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other im diately available funds on May 15, 1959 fty^fry^frg^y*^*13" s_j__^_______3: TREASURY DEPARTMENT 87 Washington IMMEDIATE RELEASE, mrammm_iimra_3iB-3 Thursday. April 30, 1959 A~yf • :___* The Treasury Department, by this public notice, invites tenders for $1,500,000,000 , or thereabouts, of 221 -day Treasury bills, to be issued on a £_£ X^SoX discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated May 15, 1959 , and they will mature December 22, 1959 . They will ^ _^ be accepted at face value in payment of income and profits taxes due on December 1959 , and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of December 15, 1959 , income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Bran or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before December 15, 1959 , and receiving receipts therefor showing ____ the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before December 15, 1959 , to the District Director of ____ Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., _kstera/____ix__x___ time, Thursday, May 7, 1959 j Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders th price offered must be expressed on the basis of 100, with not more than three dec mals, e- g., 39.925- Fractions may not be used. It is urged that tenders be made TREASURY DEPARTMENT _________ WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, April 30, 1959. A-509 The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, of 221-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated May 15, 1959, and they will mature December 22, 1959. They will be accepted at face value in payment of income and profits taxes due on December 15, 1959, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of December 15, 1959, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before December 15, 1959, and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before December 15, 1959, to the District Director of Internal Revenue for the District In which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000. $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving time, Thursday, May 7, 1959. 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 All to or accompanied make trust bidders any company. by agreements are anrequired express with guaranty torespect agreeof to not payment the to purchase purchase by an or incorporated orsale to sell, or other bank or - 2 disposition of any bills of this issue, until after one-thirty o'clock p.m., Eastern Daylight Saving time, Thursday, May 7, 1959. 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 $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on May 15, 1959. 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 terras of the Treasury bills and govern the conditions oOo may be obtained from any of their issue. Copies of the circular Federal Reserve Bank or Branch. QQ _ ' _ . • • BBTP%^. A. ¥, yy$^h?i Tuesday, May 5, 1959. A y jit'* The Treasury Department announced last evening that the tenders for two #eries yfrf Treasury bills, one series to b® an additional issue of ~he bills dated Februarys, r?59, and the other series to be dated May 7, 19>9, which were offered on .April 30, were opened at zhe Federal Reserve Bank® on May h* Tenders were invited for :i,OO-v*,O0O,OOO, or thereabout-, of 91-day bills and for 51*00,000,000, or thereabouts, of 182-day bills. The details of the two series are as followa? E4M1E OF ACC'iiPTED COMPETITI?E BiESt Price High 99.267 99.256 99.258 Average a/ b/ 74 20 182-day Treasury bills maturing Hovea-frer 5, 1959 91~day Treasury bills maturing August 6, 1959 a/ Lpprox. „ouiv# : annual Rate s * 2.90Q% - t 2.943* 2.935% : 1 Price Approx. Squiv, Annual Bate 98.340 b/ 3.284$ 3.3511 98.306 3.316! 98.321 Excepting one tender of ' 300,000 Excepting two tenders totaling f100,GOG percent of the amount of 91-^sy bills bid for at the low price wee_ accepted percent of the amount of 182-day bills bid for at the low priee was accepted TOTAt TENDERS AFPLIi'.n FOR AWE ACCEPTED BY FEDERAL RL£_liV_; PISTRICI.:? "District Appll Applied For 'or Accepted t Boston ??ew York Philadelphia Cleveland •Richmond Atlanta Chicago St. Louii? Minneapolis Kansas City Pallas San Francisco 1 25,109,000 1,430,569,000 29,929,003 35,429,000 8,297,000 37,233,000 199,450,000 16,272,000 11,386,000 35,612,000 l6,ul,000 64,-*6,000 « 14,712,000 670,369,00) 13,877,000 30,180,000 8,?v7,000 27,1*82,000 121,750,000 15,772,^00 10,1314,000 19,360,000 16,413,000 52,661,000 1 5 1 : : : -i : 1 ? s : 1 4,078,000 612,976,000 6,062,000 4,971,000 531,000 8,407,000 95,596,000 1,905,000 1,316,000 5,144,000 1,968,000 17,578,000 4,078,900 2*9*376,000 1,#6£_OQ0 4,9:71,080 531,060 8,407,000 53,996,000 1,905,000 I,3l6j000 4,844,000 1,968,000 17,576,000 * il, 910,130,000 c/ V Includes n,G01,_l_,uuuc/: *760,532,QOa ti*0G,O32,OOOd/ '2l6,9l5,OOv noncompetitive tencars accepted at the average -rice of 16,777,000 noncompetitive tenders accepted at the average price of 98.3-k V_y.U TREASURY DEPART — • ! » I.'" . I_ i l _ M ! H — _ " . l J--LI U,,,t.,ftir!r WASHINGTON, D.C. RELEASE A . M . NEWSPAPERS, Tuesday, May 5, 1959* A-510 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated February 5, 1959, and the other series to be dated May 7, 1959? which were offered on April 30, were opened at the Federal Reserve Banks on May 4. Tenders were invited for #1,000,000,000, or thereabouts, of 91-day bills and for #400,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows? RANGE OF ACCEPTED COMPETITIVE BIDS: 91-day Treasury bills maturing August 6, 1959 Approx. Equiv* Annual Rate Price High Low Average a/ b/ 74 20 99.267 99*256 99.258 182^-day Treasury bills maturing November 5, 1959 a/ Price Approx. Equiv, Annual Rate 98.340 b/ 3.284$ 98.306 3.35l$ 98.324 3.316$ 2,900$ 2.943$ 2.93556 Excepting one tender of $300,000 Excepting two tenders totaling $100,000 percent of the amount of 91-day bills bid for at the low price was accepted percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS? District Applied For Accepted : Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 25,109,000 1,430,569,000 29,929,000 35,429,000 8,297,000 37,233,000 199,450,000 16,272,000 11,386,000 35,612,000 16,418,000 64,426,000 $ t s % ? : 1 : : : t : s $ 4,078,000 612,976,000 6,062,000 4,971,000 531,000 8,407,000 95,596,000 1,905,000 1,316,000 5,144,000 1,968,000 17,578,000 $ 4,078,000 299,376,000 1,062,000 4,971,000 531,000 8,407,000 53,996,000 1,905,000 1,316,000 $1,910,130,000 $1,001,212,000c/: $760,532,000 $400,032,OOOdy TOTALS 14,712,000 670,369,000 13,877^000 30,180,000 8,297,000 27,482,000 121,750,000 15,772,000 10,134,000 19,360,000 16,418,000 52,861,000 Accepted 4,844,ooo 1,968,000 17,578,000 of Includes $216,815,000 noncompetitive tenders accepted at the average price of 99.258 3/ Includes $16,777,000 noncompetitive tenders accepted at the average price of 98.324 91 FOR I*_*DIAT_, wmmm Mmmm\ft may k. ayft , * / ^ The Treasury Department announced today that on the basis of preliminary report® holders of $ 473 million of the h$ Treasury Notes of Series A-1.X1, outstanding in the amount of $2.6 billion, which aature on August 1, 19t-l, hmm exercised the option to redeem tneir notes on August 1, 1959, at par and accrued interest on that date. The notes were issued om August 1, X*St* SSotiee of intention to redeem on August 1, 1959, m_si have been given in writing directly to any Federal Beserve Bank or Branch or to the Office of the Treasurer of the United States, or placed in the mail prior to sUdnight May 1, 1959* A notice may not be revoked. The notes to be redeeajed on August 1, 1959, vill be stooped to show that they are payable cm that date, and the coupons maturing after H^W-tt^h _te-_^fc_fc -wnJfc,jfcu-w.___*_«--& J L A ^_(__Bk t^i'iifriiiiffi 0O0 _%___s____t Tf__r_a_m _%J__M_«__•_*_ *_ _fe_*_ Q TREASURY DEPARTMENT WASHINGTON, D.C. FOR IMMEDIATE RELEASE Monday, May 4, 1959 A-5H The Treasury Department announced today that on the basis of preliminary reports holders of $473 million of the h$ Treasury Notes of Series A-1961, outstanding in the amount of $2.6 billion, which mature on August 1, 1961, have exercised the option to redeem their notes on August 1, 1959, at par and accrued interest on that date. The notes were issued on August 1, 1957* Notice of intention to redeem on August 1, 1959, must have been given in writing directly to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, or placed in the mail prior to midnight May 1, 1959* A notice may not be revoked. The notes to be redeemed on August 1, 1959, will be stamped to show that they are payable on that date, and the coupons maturing after that date, attached to the notes, have been cancelled. 0O0 - 3 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 subje 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 intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded 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, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 410, 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- xffmmwii___i__{_t decimals, e. g., 99.925. Fractions may not be used. It is urged that tendersc^e made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breeches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their cwn account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent 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 the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $ 200,000 or less for the addition bills dated February 13, 1959 , ( 91 days remaining until maturity date on m{H%$ August 13, 1959 3^_-_$ ) and noncompetitive tenders for $ 50,000 or less for the 182 -day bills without stated price from any one bidder will "be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May llx. 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing May 14., 1959 . 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 &MmUM. TREASURY DEPARTWISIJT Washington RELEASE A. M. NEWSPAPERS, / ' Thursday, May 7, 1959 A . The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000 , or thereabouts, fo cash and in exchange for Treasury bills maturing May l4? 1959 , -n the amount of $ 1,401,266,000 , as follows: 91 -day bills (to maturity date) to be issued May 14, 1959 f^r , ^F in the amount of $ 1,000,000,000 , or thereabouts, representing an additional amount of bills dated February 13, 1959 and to mature August 13, 1959 , originally issued in the amount of $ 399,998,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated May 14, 1959 , and to mature November 12, 1959 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be Issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/sflffl833_i3: time, Monday, May 11, 1959 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 t price offered must be expressed on the basis of 100, with not more than th-»<_ TREASURY DEPARTMENT T—•——'•' KIWIM"-V>..--."J.M-I.IM.I'».JI HD'nwiii'.w'm-mw WASHINGTON. D.C RELEASE A. M. NEWSPAPERS, Thursday, May 7, 1959. A-512 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing May 14, 1959, in the amount of $1,401,266,000, as follows: 91-day bills (to maturity date) to be issued May 14, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills dated February 13, 1959,and to mature August 13, 1959, originally issued in the amount of $399,998,000, the additional and original bills to be freely inte re hange able. 182-day bills, for $400,000,000, or thereabouts, to be dated May 14, 1959, and to mature November 12, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 D.m., Eastern Daylight Saving time, Monday, May 11, 1959. . 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 Tor, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the federal Reserve 3anks and Branches, following which public announcement 7*111 be made by the Treasury Departmment 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 for the additional bills dated February 13, 1959, ( 91 days remaining until maturity date on August 13, 1959) and-noncompetitive tenders for $50,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on ^ a Y 14, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 14, 1959. Cash and r exchange tenders v,iil receive equal treatment. Cash adjustments ?:ill 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. Tor 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 subsecuent 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 oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of bills and thefrom conditions Federal of theirReserve issue. Bank Copies orthe Branch. of Treasury the circular may begovern obtained any ;ed Lie ent of the amoi 3 will retary oj WMZMSM A, %%m frmmnry Bspartasent trnmrntimmd last evsaiag that th® tenders far ^S,000,,p<^^p00, or thereabouts, of 3fc0-4ay fr®a_ury bills? to om 4&U& my 11, 1959, aad Wafatui-e April IS, SNS©, which w offered on April 30, opmmd at the Fadsml feaserv* om any one Basics m my 6. (in three • ective Issues* Tim* details of thin issue are as follows s h the .bids must >v l4 1QSQ Total applied for - 53,460,664,000 ' ' ~ ~ total accepts - 2,000,28^,000 (includes $25>7,4l4,000 entered on a noa©osspstitivs basis and aecapt#& i|i ful£ st the averts prise shows ^bsis^} : tutgs ©f aenepted eoapetitivs bidss (tasptiftg om Umimr at &,3OO,0OO) 66 :Squival@«t rate of discount mpprox. 3* • _ . * 3. * •_ spos: i « ft » ^-it^^jSU^ (75 ptresnt of ttm mmavnt bid for at the im priss lias aeeeptad) or any of the F#d#r~l Bsscnni District Boston W w fork i%ils4@lphla Clsv_lai!d Atlanta Qhloago St* ImdM Mwimpolis Kansas City Dallas San Rraaolaeo total Applied for I 145,841,000 1,427,339,000 1?0,$68,000 361,150,000 95,3X0,000 142,780,000 k99fi71,WO 86,458,000 80,$?1®,000 87,436,000 128,983,000 214,209,000 TDTAL ;t3,l»6b,66t),O00 Aceepttft until IS'St'SK ich bi WL,»» f O0O ^ J 5 1 - 154,000,000 nies) ^3,035,000 86,730,000 323,S£6,000 £2,308,000 50,319,000 64,336,000 103,383,000 62,009,000 £2,000,289,000 TREASURY DEPARTMENT W A S H I N G T O N . D,CREIEASE A. M. NEWSPAPERS, Thursday, my 7, 1959* A-513 The Treasury Department announced last evening that the tenders for $2,000,000,000, or thereabouts, of 340-day Treasury bills to be dated May H, 1959, and to mature April 15, I960, which were offered on April 30, were opened at the Federal Reserve Banks on May 6. The details of this issue are as follows? Total applied for - $3,460,864,000 Total accepted - 2,000,289,000 (includes $297,414,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids* (Excepting one tender at §1,300,000) High Low • 96*468 Equivalent rate of discount approx, 3«?4o£ per annum - 96.350 « w n 11 • n 3.$65% « « Average «- 96,378 M « « » » 3.835$ " (75 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 $ 145,841,000 1,427,339,000 170,568,000 381,150,000 95,310,000 142,780,000 499,871,000 86,458,000 80,919,000 87,436,000 128,983,000 214,209,000 $ $3,460,864,000 $2,000,289,000 TOTAL 84,141,000 822,214,000 131,918,000 154,000,000 63,035,000 88,730,000 323,896,000 52,308,000 50,319,000 64,336,000 103,383,000 62,009,000 W w BF-L^SE A, If. I W S P A P E R S , Friday, lay 8, 1959. A ' "^ ' The Treasury Department announeed last evening that the tenders for 11,500,000,000, or thereabouts, mt tmx Anticipation Swiss 221-day Treasury bill® to be dated Hay 15, 1559, and to mature December 22, 1959, whieh wsre offered on April 30, were opened at the Federal Reserve Banks on May 7. The details of this issue are as followsi Total applied for - #1,699,421,000 fetal Accepted - 1,500,025,000 (iaelu^es flU>,l£7fQ00 entered on a noncompetitive' basis and accepted in fall at the average price shown below) Wangs* of adeemed competitive bidss (fcxnspfriag one tender of |_5,000,000) High Lew - 97.851 Equivalent rate of diseouisfc ap$>rsx. 3.501$ per annus - 97*756 » • « * " 3.6552 « tt Average - 97#Sll » • tt • « 3*565% w n (98 per®est of the amount bid for at the lew pri&m was aseepted) Federal Eeserve District fetal Applied for Total Accepted Boston lew fork fhiladelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis fansas city Dallas San Fsraaolseo I 21,451,000 1,257,054,000 30,029,000 91,231,000 9,586,000 34,116,000 170,801,000 13,404,000 8,227,000 13,404,000 4,131,000 45,987,000, 1 5,451,000 1,124,954,000 15,029,000 72,231,000 9,586,000 31,016,000 166,801,000 13,404,000 8,077,000 13,368,000 4,121,000 35,987,000 #1,699,421,000 $1,500,025,000 TOTAL wV iu \l I TREASURY DEPARTMENT ««;ffi_ryra__awiiiirT_^ i RELEASE A. H. NEWSPAPERS, Friday, May 8, 1959. " iT—»—y—^»-_——~_—-—-——-,_-_-—, WASHINGTON, D.C. A-5l4 The Treasury Department announced last evening that the tenders for $1,500,000,000, or thereabouts, of Tax Anticipation Series 221-day Treasury bills to be dated May 1 1959, and to mature December 22, 1959, which were offered on April 30, were opened the Federal Reserve Banks on May 7« The details of this issue are as follows? Total applied for - $1,699,421,000 Total Accepted - 1,500,025,000 (includes $110,167,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: (Excepting one tender of $15,000,000) High - 97.851 Equivalent rate of discount approx* 3*50X% per annum Low - 97*756 » « » w w 3*655% Average - 97*811 m n it w « 3.565$ M n (98 percent of the amount bid for at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 21,451,000 1,257,054,000 30,029,000 91,231,000 9,586,000 34,116,000 170,801,000 13,404,000 8,227,000 13,404,000 4,131,000 45,987,000 $ 5,451,000 1,124,954,000 15^029,000 72,231,000 9,586,000 31,016,000 166,801,000 TOTAL $1,699,421,000 $1,500,025,000 i3,4o4,ooo 8,077,000 13,368,000 4,121,000 35,987,000 " n I N / B§!IDIAT1 RELEASE, Thursdayf May 7, I9§& yy The Treasury Departaasnt axmouneed today ths ompXmtm details of the offering of a one-year certificate of indebtedness in exchaa§e for the §1.8 billion of l-i/4 pereent eertifleatea of indebtedness ai&turing May II, coneernini which a preliiidnsary announcestent was made last Thursday, April SO. The Treasury will offer the holders ©f the $1.8 billion of 1*1/4 percent certificates of indebtedness maturing May IS, 19S9, J*ho of^ortuBity to exchange their h©Min«8 for a new issue of (j/ percent certificates of indebtedness to be dated Hay IS, XW®9 and t© mature May 15, 1960. The certificates will be issued at a price of 99.95 percent of faee value, to yield about 4.OS percent. Sash subscriptions will not be received. Interest w$ll be payable on the new certificates semiannually on November 15, 19S9, a M May 15, 1960. A cash payatent of $,S0 por $1*000 face value of the new certificates, representing the discount from the face value, will be paid to holders upon issuance of the new certifieates. The subscription books wiH be open orslyjon May^Xj^jtnjl,May 12y| for the receipt of subscriptions for this issuer Any subscription for the new certificates addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United States and plaeed in the sail before midnight, May 1£, will be considered as timely. TREASURY DEPARTMENT i WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, May 7, 1959. A-515 The Treasury Department announced today the complete details of the offering of a one-year certificate of indebtedness in exchange for the $1.8 billion of 1-1/4 percent certificates of indebtedness maturing May 15, concerning which a preliminary announcement was made last Thursday, April 30. The Treasury will offer the holders of the $1.8 billion of 1-1/4 percent certificates of indebtedness maturing May 15, 1959, the opportunity to exchange their holdings for a new issue of 4 percent certificates of indebtedness to be dated May 15, 1959, and to mature May 15, 1960. The certificates will be issued at a price of 99.95 percent of face value, to yield about 4.05 percent. Cash subscriptions will not be received. Interest will be payable on the new certificates semiannually on November 15, 1959, and May 15, 1960. A cash payment of $.50 per $1,000 face value of the new certificates, representing the discount from the face value, will be paid to holders upon issuance of the new certificates. The subscription books will be open only on May 11 and May 12 for the receipt of subscriptions for this issue. Any subscription for the new certificates addressed to a Federal Reserve Bank or Branch or to the Treasurer of the United States and placed in the mail before midnight, May 12, will be considered as timely. 10 - *_' TC mtMM k. U. MiSPAHBUI, Tuesday, May It, 1959. the treasury Department announced last evening that the tenders for two seriee of Treasury bills, one series to be an additional issue of the bills dated February 13, 1959, and the other series to be dated my 14, 1959, which were offered on May 7, wan opened at the federal teserve tanks on May XX. feaders were invited for $1,000,000,0$ or thereabouts, of 91-day M i l s and for 1400,000,000, or thereabouts, of 182-day bUU, The details of the two series are as followsi XAJDB OT ACCEPT® 182-day Treaswy bills 91-day treasury bills CCMFflf 2?IfE BJBS-t maturing Sfevamber 12, 1959 m&tiariag August 13, 1959 Fries Approx. Equiv. Annual late •nmniiMimnii High Low Average 99-317 99.310 99 *m n» Fries Approx. Equiv. Annual late 98.330 98.266 98,277 3.30356 3.430* 3.408* M-kmwnmm-Mwmi 2.702* 2.730$ 2.7ft* 55 percent of the aatoust of 91-day bills bid for at the low priee was aeoepted 19 percent of the amount, of ld&«day bills bid for at the low price was accepted TOfAI* tUBOBS AFFLUX FOB AW AUCWtm District Applied for Boston lew fork Philadelphia Cleveland Hichmor^ ghieage I 17,173,000 1,513,923,00O 30,604,000 36,745,000 •St* Louis Minneapolis Kansas City San frausisee TOfAlS m9k$®,om 41,331,000 217,685,000 35,860,000 13,423,000 41,779,000 22,131,000 12,058,273,000 _J2_JMi292 if IiaBttt. I1S11W1 &I3m0TS] Accepted 17,073,000 650,770,000 13,887,000 30,475,000 18,938,000 35,058,000 102,764,000 15,659,000 13,423,000 27,092,00© 10,191,000 tl,0^0,954,0Oqa/ Applied For Accepted # 4,608,000 704,047,000 7,559,000 10,443,000 1,423,000 4,485,000 86,617,000 3,33S,0OO 6,225,000 4,814,000 1,813,000 . 31,97b,QQC, 1867,346,000 $ 4,456,000 291,908,000 2,009,000 4,363,000 1,423,000 i*,Q68,OQ0 56,109,000 3,338,000 5,425,000 i»,129,0OO 1,813,000 f4<X>,017,000|/ a/ Includes #246,225,000 nonoowpetitive tenders aeeepted at the average prise of 99.$ bf Ineludes 1^3,831,000 noncompetitive tenders accepted at the average priee of 98.271 TREASURY DEPARTMENT —_m«T^ra_nv!fmM;ff_»fiM^ W A S H I N G T O N , D.C RELEASE A. M. NEWSPAPERS, Tuesday, May 12, 1959. A-516 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated February 13, 1959, and the other series to be dated May 14, 1959, which were offered on May 7, were opened at the Federal Reserve Banks on May 11. Tenders were invited for $1,000,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows; RANGE OF ACCEPTED 91-day Treasury bills 1 182-day Treasury bills COMPETITIVE BIDS: maturing August 13, 1959 1 maturing November 12, 1959 Price High Low Average 99.317 99.310 99.312 1 Approx. Equiv. Annual Rate 2.702$ 2.730$ 2.722$ Price s J J 98*330 98.266 98.277 Approx. Equiv. Annual Rate 3.303$ 3.430* 3.408$ 55 percent of the amount of 91-day bills bid for at the low price was accepted 29 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS? District Applied For Accepted Applied For Accepted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS I 27,173,000 1,513,923,000 30,604,000 36,765,000 20,450,000 41,331,000 217,685,000 15,860,000 13,423,000 41,779,000 22,131,000 77,149,000 $2,058,273,000 17,073,000 650,770,000 13,887,000 30,475,000 18,938,000 35,058,000 102,764,000 15,659,000 13,423,000 27,092,000 19,191,000 56,624,000 $1,000,954,000a/ $ 4,608,000 704,047,000 7,559,000 10,443,000 1,423,000 . 4,485,000 86,617,000 3,338,000 6,225,000 4,814,000 1,813,000 31,974,000 f.867,346,000 $ 4,453,000 291,908,000 2,009,000 4,363,000 1,423,000 4,068,000 56,109>000 3,338,000 5,425,000 4,129,000 1,813,000 20,974,000 #400,017,000b/ a/ Includes £246,225,000 noncompetitive tenders accepted at the average price of 99.311 V Includes :*23,831,000 noncompetitive tenders accepted at the average price of 98.277 105 - 2After adoption «# the mm collection procediires, only *Mymm*WmVmsfyt and pAMyimOffl, iSN8®il mwmAmm tmxmw will oootlssis to INS «a«4 Jl' *%>*i» j»ni».mi_i__Mi _l_*J__4__,i„ ITH-T mi miwunirto* urn ___» ,__*____» <fe«_W*_i__i_ —.——-—- —- — _HHI& EOT f^SHI^ JPSQHKwb ©l^S^CwPwi SBHS OtmStw Wmm0mWS* ffWBfl 1 r>n i --o I^QKXSED F53B3&-gLSASB _f ,,-,-.• Tte Treasury Dcya.tMealv--U-^ to collect all federal Uqiaor end tobacco excise taxesfey%wmm mt returns instead of by sale of Internalfteveaaetax stands. __• as* procedure Is sghedttled tm mm effective June Sfc, 1959flis new return systes will leangely replace eat of the historic feature* of excise tax collection. For a&aost & century', liquor and tobacco taxes have been paid by laeaa s of staaps. As otter excises were added to the tax structure, payiaents by steass of returns were authorised. However, it was not until the enactment of the l$F>k Internal Seveaue Code that Congress authorized liquor and tobacco taxes to be paid by returns instead of stassps. Since that tiiae, returns on a daily basis have been authorised for the payEsefit of beer, wine, sod cigar taxes. These taxes will now be paid nfmlmonthly under the geaeral proce&xres belxtg adopted. Internal Revenue Coct!_lssiccier Baas Lathaa said experience under the limited program heretofore adapted indicated the returas system could aprpropariately be extended to distilled spirits taxes and to cigarette and other tobacco taxes. Be said the eontimtoua end extensive industry supervision carried out by the Internal Avenue's Alcohol and Tobacco fax Division vculd protect the Federal revenues. TREASURY DEPARTMENT UU»<t -, -W- .JU„miMJu—•——HI-|————-————B_____M__^__^B___M_M_mM_H__—»••___ WASHINGTON, D.C. IMMEDIATE RELEASE Monday, May 11, 1959. A-517 The Treasury Department today announced plans to collect all Federal liquor and tobacco excise taxes by means of returns instead of by sale of Internal Revenue tax stamps. The new procedure is scheduled to be effective June 24, 1959. The new return system will largely replace one of the historic features of excise tax collection. For almost a century, liquor and tobacco taxes have been paid by means of stamps. As other excises were added to the tax structure, payments by means of returns were authorized. However, it was not until the enactment of the 1954 Internal Revenue Code that Congress authorized liquor and tobacco taxes to be paid by returns instead of stamps. Since that time, returns on a daily basis have been authorized for the payment of beer, wine, and cigar taxes. These taxes will now be paid semimonthly under the general procedures being adopted. Internal Revenue Commissioner Dana Latham said experience under the limited program heretofore adopted indicated the returns system could appropriate^be extended to distilled spirits taxes and to cigarette arid other tobacco taxes. He said the continuous and extensive industry supervision carried out by the Internal Revenue's Alcohol and Tobacco Tax Division would protect the Federal revenues. After adoption of the new collection procedures, only documentary and playing card excise taxes will continue to be paid by stamps. Federal cigarette and other tobacco products stamps will no longer appear on packages. The strip stamp, which is not a tax stamp as such but which evidences tax payment, will continue to be used on liquor bottles. oOo ] ! Iw STATUTORY DEBT LIMITATION ASOF APRH 30, 1959 »__^_.J_______59_ Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued undei^authority of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States (erepciiucnguranteed obligations as m a y be held by the Secretary of the Treasury), "shall not exceed in the aggregate J 2 * ? ^ ^ * * * " " 0 0 0 (Act of September 2, 1958; U.S.C., title 31. sec. 757b), outstanding at any one time. .For purposes of t h i s J * * " ° * " f « « « redemption value of any obligation issued on a discount basis which is redeemable M O T to maturity at the option attteholder shall be considered as its face amount." T h e Act of February 26, 1958, (P.L. 85-336 8 5 * " C o n g w ) „ & o v j d e s ^ . i S i U w period beginning on February 26, 1958 and ending June 30, 1959, the above limitation ($283,000,000,000) shall be temporarily increased by $5,000,000,000. T h e following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation: Total face amount that m a y be outstanding at any one time ?2oo,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills ._ . ... ......... $3**, 244,051,000 Certificates of indebtedness.34,390 ,086,000 Treasury notes ..„ _ 27.203.917.000 $ 95,838,054,000 BondsTreasury _ _ 84,821,321,650 Savings (current redemp. value) 50 , 8l8 , 502 1 945 Depositary.182,763, 500 Investment series ._ __ . _ 8.509.189.000 144,331,777,095 Special FundsCertificates of indebtedness 20,844,004,000 Treasury notes 15,496,344,000 Treasury bonds ............. 6 , 9 3 7 , 5 0 0 , 0 0 0 43.277.848.000 Total interest-bearing .... ... 2 8 3 , 4 4 7 , 6 7 9 , 0 9 5 Matured, interest-ceased — — 51^,907» T^*' Bearing no interest: United States Savings Stamps Excess profits tax refund bonds —.... Special notes of the United States: Internat'l Monetary Fund series .. Total 5 1 , 2 1 3 » 29.2 "51,377 919.000.000 _-_ -... Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 106,007,050 Matured, interest-ceased 597.150 Grand total outstanding m< „ Balance face amount of obligations issuable under above authority April 30 1959 Reconcilement with Statement of the Public Debt.....*;. 971.064.669 284,933,651,708 106.604.200 „ „ 285,040,255,908 2,959,744,092 .;£..*.....—.„..„..... (Date) (Daily Statement of the United States Treasury, _ _• .._"P.?3:I„^X.*..^r.„5S!. J o*'*> 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-518 285,353,359,825 106 . 604.200 285,459,964,025 419. 708.117 285,040,255,908 S T A T U T O R Y D E B T LIMITATION ASOF_APgIL_30, ^ Q Q "MaviQiQco Washington. May 13,1959 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 1283,000,000,000 (Act of September 2, 1958; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount." The Act of February 26, 1958, (P.L. 85*3*36 85th Congress) provides that during the period beginning on February 26, 1958 and ending June 30, 1959, the above limitation (1283,000,000,000) 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 $288,000,000,000 Outstanding* Obligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills $34,244,051,000 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 34,390,086,000 27,203.917,000 8 4 , 821, 321,650 50 ,818, 502,9V? 182 , ?63 , 500 8.509,189.000 20,844,004,000 15,496,344,000 6 , 937, 500 , 000 1959 $ 95,838,054,000 144,331,777,095 43.277.848.000 283 , 447 , 6?9,095 514,907,944 51,213,292 851 > 377 919,000.000 971,064, 669 284,933,651,708 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 106,007,050 Matured, interest-ceased 597.150 Grand total outstanding .« Balance face amount of obligations issuable under above authority * u _ KI- -. u April 30, 1959 Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury, 106,604.200 t. (Date) £:J??l]±.\.2Q..i..^2.52. (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-518 285, 040 , 255 , 908 2 , 959 , ?44, 092 , ) 285,353,359,825 106 , 604 , 200 285 ,459 i 9^4 , 025 419 . ?08 ,117 285,040,255,908 - 3- Mf„H««_gtt 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 hills are subjec to estate, inheritance, gift or other excise taxes, whether Federal or State, hut are exempt from all taxation now or hereafter imposed on the principal or interes 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou 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 cluded 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, whet on original issue or on subsequent purchase, and the amount actually received eit upon sale or redemption at maturity during the taxable year for which the return 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- 111 r <>«,/* + « « <|. <J> 4> t . « <) 4> 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 ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in i ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona bills dated February 19. 1959 , ( 9l days remaining until maturity date on August 20, 1959 ) and noncompetitive tenders for $ 50,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full fMiyy at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on Hay 21. 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing May 21, 1959 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 _____U_U-u£-___ TREASURY DSPARE-i'EI.'T Washington /\ ^ T/^7 RELEASE A. M. NEWSPAPERS, Thursday, May \it 1959 w Ttte Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1.400.600,000 > cash and in exchange for Treasury bills maturing My- pi i Q-Q or thereabouts, for , in the amount _£*f of $1.599.999.000 , as follows: _D_E_! 91 -day bills (to maturity date) to be issued Way 21, 1959 y in the amount of $1,000,000.000 > or thereabouts, represent- ing an additional amount of bills dated F_te_-*-~y 19. 1959 , and to mature Aagost 20, 1959 > originally issued in the amount of $401.127.000 j the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated ^^#^T -1 _ t i t _i _^-^-^_^ _, ^^^^™"^"^^^^^^2____^^"^^^^™"'^ lff-1 s--*_----^- May 21. 1959 J and to mature g_Ta_ber 19. 1959 — * —* ______ 1™•*-' y \mt-a 1 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face a will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/_____n____t time, Monday, May 18, 1959 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 t price offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, Thursday, May Ik, 1959. -A-519 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing May 21, 1959, in the amount of $1J399,999,000, as follows: 91-day bills (to maturity date) to be issued May 21, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills datedFebruary 19, 1959, and to mature August 20, 1959, originally issued in the amount of $401,127,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated May 21, 1959, and to mature November 19, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 o.m., Eastern Daylight Saving " time, Mtonday, May 18, 1959. . 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 bill3 applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 for the additional bills dated February 19, 1959,( 91 days remaining until maturity date on August 20, 1959) and noncompetitive tenders for $ c 0 000 or less for the 182-day bills without stated price rrom any one bidder will be accepted In full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 21, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 21, 1959. 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 h5h (b) and 1221 (5) of the Internal Revenue Code of 195^ the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need Include in his income tax return only the difference between the price paid for such bills, whether on original Issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of bills and thefrom conditions Federal of theirReserve issue. Bank Copies orthe Branch. of Treasury the circular may begovern obtained any • y: _. - 2 - Commodity : Period and quantity : Unit : Imports ~" : of : as 01' : Quantity : X_7 2. 1959 absolute Quotas; Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter) •••• 12 mos, from AUgUSo 1, 1^58 Eye, rye flour, and rye meal •••• 12 mos. from July 1, 1958 Canada Other Countries Butter substitutes, including butter oil, containing k5% or more butterfat ••• Tun£ oil Imports through May 11. Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries _,709,000 Pound 1,528,889* 182,280,000 3,720,000 Pound Pound 182,178,566* 1,200,000 Pound Quota Filled 16,633,591 2,231,680 702,000 Pound Pound Pound 7,450,269* Quota Filled Quota Filled 6161 TREASURY DEPARTMENT Washington, D. C. i *> IMMEDIATE RELEASE A-520 Thursday, May 14, 1959. 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 May 2, 1959, inclusive, as follows: Commodity : Period and Quantity : Unit : Imports : of : as of : Quantity : May 2, 1959 Tariff-Rate Quotas: Cream, fresh or sour ..... Calendar Year 1,500,000 Gallon 38 Whole milk, fresh or sour Calendar Year 3,000,000 Gallon 51 Cattle, 700 lbs. or more each (other than dairy cows) ..... April 1, 1959 June 30, 1959 120,000 Head 13,870 12 mos. from April 1, 1959 200,000 Head 12,126 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish ... Calendar Year 36,919,874 Pound Quota Fill Tuna fish Calendar Year 52,372,574 Pound 14,958,862 White or Irish potatoes: Certified seed • Other 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 74,008,620 7,210,497 Walnuts Calendar Year 5,000,000 Pound 1,930,611 Alsike clover seed 12 mos. from July 1, 1958 3,000,000 Pound 2,595,789 12 mos. from July 1, 1958 80,000,000 Pound 3,378,580 Calendar Year 13,500,000 Pound 9,845,451 Cattle, less than 200 lbs. each. Peanut oil Woolen fabrics 1/ Imports for consumption at the quota rate are limited to 18,459,937 pounds during the first six months of the calendar year. TREASURY DEPARTMENT Washington, D. C. 'MEDIATE RELEASE A-520 mrsday, May 14, 1959. The Bureau of Customs announced today preliminary figures showing the imports for jnsumption of the commodities listed below within quota limitations from the beginning f the quota periods to May 2, 1959, inclusive, as follows: Commodity : Period and Quantity : Unit : Imports : of : as of :Quantity : May 2. 1959 iriff-Rate Quotas: Calendar Year 1,500,000 Gallon 38 Calendar Year 3,000,000 Gallon 57 ttle, 700 lbs. or more each ttle, less than 200 lbs. each. sh, fresh or frozen, filleted, tc, cod, haddock, hake, ollock, cusk, and rosefish ... April 1, 1959 June 30, 1959 120,000 Head 13,870 12 mos. from April 1, 1959 200,000 Head 12,126 Calendar Year 36,919,874 Pound Quota Filled -1/ Calendar Year 52,372,574 Pound 14,958,862 114,000,000 36,000,000 Pound Pound 74,008,620 7,210,497 Calendar Year 5,000,000 Pound 1,930,611 12 mos. from July 1, 1958 3,000,000 Pound 2,595,789 12 mos. from July 1, 1958 80,000,000 Pound 3,378,580 Calendar Year 13,500,000 Pound 9,845,451 ite or Irish potatoes: 12 mos. from Sept. 15, 1958 Imports for consumption at the quota rate are limited to 18,459,937 pounds during the first six months of the calendar year. Commodity Period aa wuantixy Unit of Quantity izporis as or May 2. lyy, Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter) .... 12 mos. from Augus- 1, 1958 2ye, rye flour, and rye meal .... 12 mos. from July 1, 1958 Canada Other Countries Butter substitutes, including butter oil, containing 45$ or more butterfat ••••• Tung oil * Imports through May 11, Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries 1,709,000 Pound 1,528,889* 182,280,000 3,720,000 Pound Pound 182,178,566* 1,200,000 Pound Quota Filled 16,633,591 2,231,680 702,000 Pound Pound Pound 7,450,269* Quota Filled Quota Filled CM 117 "** mim l TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE Thursday, May Ik, 1959. A-521 The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to May 2, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: : - |-j-j-j: - imports Commodity : Established Annual : of : as of : Quota Quantity :Quantity : May 2. 1959 Buttons 765,000 Gross 145,243 Cigars 180,000,000 Number 1,211,029 Coconut oil 403,200,000 Pound 46,261,002 Cordage 6,000,000 Pound 1,625,268 (Refined 15,378,000* Sugars (Unrefined 1,904,000,000 Pound Tobacco 5,850,000 Pound 3,626,719 * Information furnished by Department of Agriculture. 624,210,000* TREASURY DEPARTMENT Washington, D.. C. IMMEDIATE RELEASE A-521 Thursday, May 14, 1959 The Bureau of Custom's announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to May 2, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: Commodity : s Unit ; Imports s Established Annual : of : as of : Quota Quantity :Quantity : May 2, 1959 Buttons 765,000 Gross 145,243 Cigars 180,000,000 Number 1,211,029 Coconut oil 403,200,000 Pound 46,261,002 Cordage 6,000,000 Pound 1,625,268 (Refined 15,378,000* Sugars (Unrefined 1,904,000,000 Pound Tobacco 5,850,000 Pound 3,626,719 * Information furnished by Department of Agriculture. 624,210,000* CO CD *-i CD -«__— COTTON WASTES (In pounds) 'J& COTTON CARD STRIPS made from cotton having-a staple of less than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUEs Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple- length in the case- of the following countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin Established TOTAL QUOTA United Kingdom Canada . France . . . British India . . . . . . Netherlands Switzerland ....... Belgium Japan . . . . China Egypt Cuba Germany 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 i x>a_y . . . . fcj. . . . . . . Total Imports Sept. 20, 1958, to _ May lj, 1959 1,448,232 239,690 Established s Imports 33-1/356 of : Sept. 20, 1958 Total Quota : to May 11, 1959 1,441,152 1,441,152 75,807 50,304 22,747 14,796 • 12,853 25,443 7,088 24,935 9«~o.? 24,935 6,580 5,482,509 1,769,741 1,599,886 1,472,667 ^f Included in total imports, column 2. Prepared in the Bureau of Customs • 6,580 V CO CD rH CD TREASURY DEPARTMENT 7 _/ ^ Washington, D. C. ^'cV IMMEDIATE RELEASE Thursday, May 14, 1959. A-522 Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) Cotton under 1-1/8 Inches other than rough or harsh under 3/4" Imports September 20, 19 58 - May 11, 1959 Establii3hed Q u o t a Country of Origin Established Quota Imports Country of Origin l>V;,ypt and the Anglo- Honduras K/ryptlnn fhuhm 783,816 Paraguay l\-ru .?47,9'j2 Colombia Bi.it L:;h Lid La 2,003,^3 9,672 Iraq China 1,370,791 British East Africa .. . Mexico 8,883,^9 8,883,259 Netherlands E. Indies . J3iviz.il 618,723 618,723 Barbados Union of 'Soviet l/Other British W. Indies Hoc i.ali.r.t H e p u b l l c s ... 475,124 327,702 Nigeria Argentina 5,203 _:/othcr British W. Africa Unit L 2JJ __/Other French Africa ... Keiwidor 9,333 ~ Algeria and Tunisia ... l/ Oilier than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. Other than Gold Coast and Nigeria. «, Other than Algeria, Tunisia, and Madagascar. Cotton 1-l/8" or more Imports August 1, 1958 - May 11, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation Imports I-3/8" or more I-5/32" or more and under 1-3/8" (Tanguis) 1-1/8" or more and under 1-3/8" 39,590,778 39,590,778 1,500,000 1,500,000 h,<yy,6km. 4*565 #64-! 752 871 124 195 Imports 752 2 ,;.^io 71.,308 — — _ - 21 ,321 5,,377 16,,oo4 _. — — 689 TREASURY DEPARTMENT Washington, D. C. 121 IMMEDIATE RELEASE Thursday, May 14, 1959. A-522 Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) Cotton under 1-1/8 inches other than rough or harsh under 3/4" Imports September 20, 19 58 - May 11, 1959 Country of Origin Egypt and the AngloEgyptian Sudan Peru , British India ........ China , Mexico Brazil Union of Soviet Socialist Republics Argentina Haiti , Ecuador , Established Quota 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports 9,672 8,883,259 618,723 327,702 Country of Origin Honduras Paraguay . Colombia Iraq British East Africa ... Netherlands E. Indies . Barbados 1/Other British V. Indies Nigeria 2/0ther British W. Africa 3/Other French Africa ... Algeria and Tunisia ... 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3/ Other than Algeria, Tunisia, and Madagascar. Cotton 1-1/8" or more Imports August 1, 1958 - May 11, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation 1-3/8" or more 1-5/32" or more and under 1-3/8" (Tanguis) 1-1/8" or more and under 39,590,778 Imports 3?,590,778 1,500,000 1,500,000 Established Quota 752 - 871 124 195 2,240 71,388 21,321 5,377 16,004 689 752 - - COTTON WASTES (In pounds) COTTON CARD STRIPS made-from cotton having-a etapl-e--of less than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING IASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE % Provided, however, that not more than -33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple- length in the- case- of the following countries? United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin United Kingdom . . . . . Canada . France . . . . . . . .. British India Netherlands • . . . . . . Switzerland . . . . . . . Belgium Japan . . . . . . . . . . China . . . . . . . . . . Egypt Cuba . . . . •••... Germany Italy Established TOTAL QUOTA " i Total Imports s Established 2 Importsy : Sept. 20, 1958, to s 33-1/3^ of i Sept. 20, 1958 May II. 1959 £ Total Quota ; to May 11, 1959 4,323,457 239,690 227>420 69,627 68,240 44,388 38,559 341,535 17,322 8,135 6,544 76,329 21,263 1,448,232 239,690 24,935 6,580 25,443 7,088 24,935 5,482,509 1,769,741 1,599,886 1,472,667 if Included in total imports, column 2. Prepared in the Bureau of Customs. 1,441,152 1,441,152 75,807 50,304 22,747 14,796 • .12,853 - 6,580 CO CD 12 TREASURY DEPARTMENT Washington, D. 0. IMMEDIATE RSLEASS Thursday, May 14, 1959. A-523 PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OP UNMANUFACTURED LEAD AND ZINC GHARGEABLB TO THEttUOTASESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 Of SEPTEMBER 22, 195« QUARTERLY QUOTA PERIOD - April 1, 199? - *»«• 30, 1959 IMPORTS - April 1, 1959 - May 12, 1959 ITEM 394 ITEM 393 ITEM 3?2 " ' t Load bullion or baa a bullion, i lsad in pigs and bars, load Zino-boaring oros of all kinds,i Zino In blooks, pigs, or slabs; Load-boaring oroa, fluo dust,i dross, roolalraad load, sorap oxoopt pyrltos containing not i old and worn-out zino, fit and mattot * load, antlMonlal load, antlovir yfi of cino » only to bo romanufaoturod, sino x aonlal sorap load, typo natal, t dross, and sino skimmings a all alloys or combinations of t ___ tcuartsrly Quota t load n.s.p.f. ^Quarterly Quota Imports Imports i By Weight Dutiable Zino {Quarterly Csuota ""r tC-ar^tarly Quota (Pounds) '""""*" (Pounds) Dutlabls. Load Imports i Dutlablt Load Imports (Pounds} (Pounds) 23,680,000 10,080,000 10,080,000 9#237i7l9 ITEM 391 Country of Production Australia 5,440,000 Bolglan Congo Belgium and Luxemburg (total) Bolivia Canada 5,040,000 7,520,000 6,467,792 37,840,000 M, 102,320 3,600,000 3,600,000 $,040,000 66,480,000 13,440,000 11,609,927 15.920,000 8,055,447 51,874,660 Italy 36,880,000 Moxloo Poru 16,160,000 On. So. Afrloa 14,880,000 11,785,109 14,135,660 11,472,351 12,880,000 157,538 70,480,000 30,156,031 6,320,000 35,120,000 12,800,706 3,760,000 3,463,071 1,005,179 15,760,000 14,740,156 Yugoslorla All othor forslgn oountriss (total) 2,700,684 6,560,000 pnCPAIua IN THE BUIUCA.U or OU_TOU_ 654,808 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 TREASURY DEPARTMENT fashington, D . C. y liT.S-IATB RELEASE lursday, May 14. 1959. A-523 PRELIMINARY DATA ON IMPORTS FOR CONSUHPTION 0? tJN_ANU?ACTU?_D LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 1958 QUARTERLY QUOTA PERIOD - April 1, I959 - June 30, 1959 IMPORTS - April 1, I959 - May 12, 1959 ITEM 391 Country of Produotion Australia ITEM 392 : Lead bullion or base bullion, t lsad in pigs and bars, lead Lead-bearing ores, flue dust,: dross, reslai-ad lsad, scrap and cattes . lfla ^ antisonial load, anti: aonlal scrap lsad, type _atal, t all alloys or combinations of »i__artarly Guota lead n.s.p.f. : Quarterly Casta i Dutiable. Lead I-ports ; Dutiable Lsad Isoorta (Pounds) (Pounds) "~ 10,080,000 10,080,000 23,630,000 ITEM 393 ITEM 394 t t t : Zino-baaring ores ©f all kinds,: Zino in blocks, pigs, or slabs; : except pyrites containing not : old and -worn-out zino, fit 1 only to bo reaanufactured, zino : oyer 3 ^ of tino dross, and zino ski._-ing_ : 1 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ :_oartarty _oota Quarterly Quota 1 Dutiable Zins Inports Icports By Selght (Pounds)' ~ (Pounds') 9,237,719 Belgian Congo 5,440,000 Belgium and Luxsaburg (total) Bolivia 5,040,000 5,040,000 Canada. 13,440,000 11,609,927 15,320,000 8,055,447 66,430,000 51,874,660 Italy Merioo Peru 16,160,000 14,135,660 On. So. Afrioa 14,880,000 11,785,109 Yugosloria <m All other foroign countries (total) 6,560,000 654,808 36,880,000 2,700,684 7,520,000 6,467,792 37,840,000 14,102,320 3,600,000 3,600,000 11,472,351 70,480,000 30,156,031 6,320,000 3,463,071 12,880,000 157,538 35,120,000 12,800,706 3,760,000 1,005,179 15,760,000 14,740,156 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 TREASURY DEPARTMENT l24 f, \ WASHINGTON. D.C IMMEDIATE RELEASE, Thursday, May 14, 1959. \ A-524 Preliminary reports from the Federal Reserve Banks show that about $1,258 million of the $1,817 million of certificates of indebtedness maturing May 15 have been exchanged for the new 4 percent certificates of Series B-1960, leaving about $559 million for cash redemption. The details of the exchange by Federal Reserve Districts will be announced tomorrow. 125 BS—OIATB RELEASE, Fi-Ugr. K g IS. 1989. II The Treasury Departiseat today aanotinesd the results of the etureist exchange offering of A pmrmmnt Trmmmwry Certificates of Indebtedness of Series B-4960, dated May 15, 1959, mt«ri»g May 15, I960* and open to holders of 11,83.6,W79000 of 1*1/4 pmrmnt eertifioatea of indebtedness maturing May IS* Ai^omits exchanged were divided among the Federal Reserve Mstrlets and the Treasury mm follows? Federal Reserve P*»tri«t Total Subscriptions Sesgtirsd and Allotted Boston Hew Tork Philadelpitia Cleveland liehsiond Atlanta. Chicago St, Lotiis ;inn«apolis Kansas 0ity Dallas San Fran^is^G Treasury | S8,86S,000 ?64,?S4,000 18,199,000 4§,9Q?,OG0 TOTAL g£,5as,ooo 22,889,000 166,419,000 S#,S11,O0O *6,2**»000 54,S88,G00 u9 sea, ooo S$,44S,000 M*g_«P , tl,ii9,4&3,000 The siaount of the maturing certificates for caefe redemption is #5**7.X rnHUon. 126 TREASURY DEPARTMENT WASHINGTON, D.C TJYMEDIATE RELEASE, Friday, May 15, 1959. k-525 The Treasury Department today announced the results of the current exchange offering of 4 percent Treasury Certificates of Indebtedness of Series B-1960, dated May 15, 1959, maturing May 15, 1960, and open to holders of $1,816,517,000 of 1-1/4 percent certificates of indebtedness maturing May 15, Amounts exchanged were divided among the Federal Reserve Districts and the Treasury as follows: Federal Reserve District Total Subscriptions Received and Allotted Boston New York Philadelphia Cleveland Richmond Atlanta Chicago : St. Louis Minneapolis Kansas City Dallas San Francisco Treasury $ 58,865,000 764,754,000 18,199,000 49,907,000 22,565,000 22,889,000 166,419,000 28,511,000 55,262,000 54,588,000 24,588,000 55,445,000 9,448,000 TOTAL $1,269,458,000 The amount of the maturing certificates for cash redemption is $5^7-1 million. My A9 1959 127 y m m i g H n 10 m. >*mti® I** ^UORSS The following transactions were aide in diretst and guaranteed securities •f the Ooverweat for treasury invest-eats and other accounts daring the soaifc of April, 1959s •Hrobmmm U*U*6,500.00 Sales let Purchases 4,535.500.00 143,951,000.00 (8*dJ ®w*l*m ** Chief, ZsEvestsMuitc 'Srmmh Mission of Deposits 4 X*rest««*ts o "3 y'r ... - •.; O _ . i ~ _ _ •-JO y\ *• v TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Wednesday,,ftprll1_K- 1 P59. ^?** J <^~~ • A '199* During Nrtfimh 1959* market transactions in direct and guaranteed securities of the government for Treasury investment and other accounts resulted in net purchases by the Treasury Department ofT% f\2} 3l6s 8001QQ. oOo TREASURY DEPARTMENT WASHINGTON, D IMMEDIATE RELEASE, Friday, May 15, 1959* A-526 During April 1959* 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 $43,951*000. oOo TREASURY DEPARTMENT WASHINGTON. D. FOR IMMEDIATE RELEASE Monday, May 18, 1959 A-527 Secretary of the Treasury Robert B. Anderson and Chilean Finance Minister Roberto Vergara today signed an exchange agreement in the amount of $15,000,000. This replaces a similar agreement in the amount of $10,000,000 which has been periodically renewed since April, 1956. The agreement provides that until December 31* 1959* Chile may request the United States Exchange Stabilization Fund to purchase Chilean pesos should the occasion for such purchase arise. Any pesos so acquired by the U. S. Treasury would subsequently be repurchased by Chile for dollars. The agreement is designed to assist Chile in its continuing efforts to achieve economic stability and freedom in its trade and exchange system. The Chilean Government has stated its intention to continue to operate a free exchange market in which the value of its currency unit, the peso, will be determined by basic supply and demand forces. It further states that exchange operations on the part of the authorities will be conducted to minimize exchange rate fluctuations arising from purely temporary or erratic influences which do not reflect a fundamental trend in the market. The International Monetary Fund has also announced a standby arrangement with Chile in the amount of $8.1 million. oOo 1 Ti - U _ H E m s ^ A. U. SE&SPAPI3IS, Tuesday, Hay 19, X959* f -_ y- v The treasury Department mmmmomd last evening that the tenders tor two series of treasury M i l s , one series tofeean additional issue mt the bills dated Fehrasay Xf X9$99 and the ether series t© be dated May 21, 1959, whieh were offered on Kay lh, were opened at the federal tesenr® Banks d a i g r H . fenders were inrlted for 11,000,000,000, or thereabouts, of 91-day M i l s and for ttt00,OO0,0O0, or thereabouts, of 182-day hills, fhe details of the two series are as follows* M m OF Aooiftir> CCMPITXflfl BH3Ss f1-day treasury hiUs aaturlEf August 20, 1959 Priee Approx. Equiv, Annual late 182-day treasury hills during Boveaber 19, 1959 Priee Approx. Equir. R&t€ .urn, ,-..,, ,i I . I J H I M — » — » » — — High Low Average 99.282 99*270 99.275 2.&m t.mB% 2.86958 98.310 a/ 98.280 90.293 3.3WS 3.ii02* 3.376* a/ froept-lng om tender of t35,OO0 jk peroent of the aiioiint of 91«day bills bid for at the low price was accepted 53 percent of the amount of 182-day bills bid for at the low price was accepted TmA&.'f&wmm APPLIES FOE AW ACCEPTS© BT nos&ix BESHOT BIOTUJCTSI ©istriet Applied For Boston law fork f^iladelphia Oleveland BioliBond. Atlanta Chicago St. Louis Minneapolis mmm City Dallas SaaFranoise© I 23,089,000 1,567,1*1*1,000 28,237,000 33,612,000 9*5659OOQ 2ii,?21,QQ0 180,507,000 15,003,000 7,619,000 3i*,6Sl*,000 15,885,00© 55,266,000 fOfAfcS 11,995,599,000 Accepted 11,959,000 7£S,7la,®00 12,892 ,000 18,1*37,000 9,515,000 I6,9li7,000 99,527,000 lii,9O3,000 7,019,000 22,6Sl*,000 15,860,000 y.,9g^_ooo^ tl,000,378,000y V Includes *210.7lt9,000 noneo»petitiire tenders of Includes 121,827,000 noncompetitive tenders Applied For Accepted # ii,092,CO0 6714,122,000 12,65l*,©00 19,3ii0,0O0 670,000 1,900,000 66,103,000 2,992,000 2,913,000 li,891,000 2,237,000 I k,069,«00 30l*,962,S90 79m*m 9,056,000 670,090 1,900,000 29,8^8,000 2,9^2,000 2,819,000 h95hk9m 2,037,000 1831,9^,000 giO0,117,0OO^ at the average priee of 99«tfl at the average priee of 98»2f) 1 QO TREASURY DEPARTMENT J. wi- WASHINGTON, D.C. RE-EASE A. M. NEWSPAPERS, Tuesday, May 19, 1959. A-528 The Treasury Department announced last evening that the tenders for two series of Treasury bills, 6ne series to be an additional issue of the bills dated February 19, 1959, and the other series to be dated May 21, 1959, which were offered on May Ik, were opened at the Federal Reserve Banks on May 18. Tenders were invited for 11,000,000,000, or thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day bills. The details of the two series are as followst RANGE OF ACCEPTED COMPETITIVE BIDS j High Low Average 91-day Treasury bills maturing August 20, 1959 182-day Treasury bills maturing November 19, 1959 Price Approx. Equiv, Annual Rate Price Approx. Equiv, Annual Rate 99.282 99.270 99.275 2,81*0$ 2.888$ 2.869$ 98.310 a/ 98.280 " 98.293 3.31*3$ 3.1*02$ 3.376$ a/ Excepting one tender of $35,000 3\ percent of the amount of 91-day bills bid for at the low price was accepted 53 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BI FEDERAL RESERVE DISTRICTS: District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS Applied For \ 23,089,000 1,567,1*1*1,000 28,237,000 33,612,000 9,565,000 2i*,721,000 180,507,000 15,003,000 7,619,000 3l*,651*,000 15,885,000 55,266,000 $1,995,599,000 Accepted 11,959 ,000 728,71*1,000 12,892 ,000 18,1*37,000 9,515 ,000 16,91*7,000 99,527 ,000 It,903 ,000 7,019 ,000 22,651*,000 15,860 ,000 1*1,921*,000 Applied For Accepted I 1*,092,000 67lt,i*22,000 12,651*, 000 19,11*0,000 6?0,000 1,900,000 66,103,000 2,992,000 2,913,000 1*,891,000 2,237,000 39,930,000 $ 1*,069,000 30l*,962,000 7,50l*,000 9,056,000 670,000 1,900,000 29,81*8,000 2,91*2,000 2,819,000 i*,5U*,000 2,037,000 29,766,000 $l,000,378,OOOb/: $831,91*1*, 000 $1*00,117,000c/ bf Includes $210,71*9,000 noncompetitive tenders accepted at the average price of y Includes $21,827,000 noncompetitive tenders accepted at the average price of 98.293 Yt-IXMi- E X XHK-I„ KtX KBfl_ 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 subjec 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 interes thereof by any State, or any of the possessions of the United States, or by anylocal 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou 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 cluded 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, whet on original issue or on subsequent purchase, and the amount actually received eit upon sale or redemption at maturity during the taxable year for which the return 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. - 2decimals, 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 Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona bills dated February 26, 1959 , ( 91 days remaining until maturity date on Xp?gJK £&XX August 27. 1959 ) a n d noncompetitive tenders for $ 50.000 or less for the 185 -day bills without stated price from any one bidder will be accepted in full &XXX at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 28, 1959 , in cash or p~-_ - other immediately available funds or in a like face amount of Treasury bills matu ing May 28. 1959 • Cash and exchange tenders will receive equal treatment. "mm 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 smxmmmm. 7 Q^ mi. 0 J TREASURY DEPARTMENT Washington- 4- r> f RELEASE A. M. NEWSPAPERS, Thursday, May 21, 1959 ______ The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,400,000,000 , or thereabouts, f cash and in exchange for Treasury bills maturing May 28, 1959 , in the amount of $ 1,599,950,000 , as follows: 91 -day bills (to maturity date) to be issued W May 28, 1959 , """"" w in the amount of $1,000,000,000 , or thereabouts, representing an additional amount of bills dated February 26, 1959 , m and to mature August 27, 1959 , originally issued in the amount of $595,562,000 , the additional and original bills $__x) to be freely interchangeable. 185 -day bills, for $400,000,000 , or thereabouts, to be dated ----__- ___^_ May 28, 1959 , and to mature November 27, 1959 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/ftDQCKBQCB:time, Monday, May 25, 1959 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 t price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, May 21, 1939. A-529 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing May 28,. 1959, in the amount of $1,399,930,000, as follows: 91-day bills (to maturity date) to be issued May 28, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills dated February 26, 1959,and to mature August 27, 1959, originally issued in the amount of $395,3^2,000, the additional and original bills to be freely interchangeable. 183-day bills, for $400,000,000, or thereabouts, to be dated May 28, 1959, and to mature November 27, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 o.m., Eastern Daylight Saving time, Monday, May 25, 1959. . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, -with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded In the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from Incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 for the additional bills dated February 26, 1959,(91 days remaining until maturity date on August 27, 1959) and noncompetitive tenders for $50,000 or less for the 183-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on May 28, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing May 28, 1959. 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 oOo loss. Treasury Department Circular 4l8, Revised, andthe this notice, Federal prescribe of theirReserve Issue. the terms Bank Copies of or the Branch. of Treasury the No. circular bills may and begovern obtained from conditions any 1 17 IMMEDIATE RELEASE THURSDAY, MAY 21, 1959 A-530 The Treasury made public the following letter today: May 21, 1959 My dear Mr. Chairman: In pursuance of the planning initiated several weeks ago, I am glad that representatives of your staff and Treasury's tax staff are meeting in connection with developing plans for the announced extensive inquiry into the opportunities for constructive reform of the Federal tax system. As agreed in our meetings on this subject, we welcome the opportunity to work with you to seek such changes as may be developed to provide a more equitable tax system and a tax climate which will foster sound economic growth in our free enterprise system. It is clear that any changes must be carried out so as to avoid sacrificing revenue required for responsible financing of our government and to provide needed debt retirement. The Treasury looks forward to continuing to work with you and your Committee in developing pertinent information both before and during the hearings beginning in November. We share your belief that this inquiry, plans for which we have discussed with you during recent weeks, offers a very real opportunity to develop recommendations for practical and achievable improvements in the tax structure which would aid in fostering increased incentives and continued economic health for our nation in the years ahead. Sincerely, /s/ Robert B. Anderson Secretary of the Treasury Honorable Wilbur D. Mills Chairman Committee on Ways and Means House of Representatives Washington 25, D. C. TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE THURSDAY, MAY 21, 1959 A-530 The Treasury made public the following letter today: May 21, 1959 My dear Mr. Chairman: In pursuance of the planning initiated several weeks ago, I am glad that representatives of your staff and Treasury's tax staff are meeting in connection with developing plans for the announced extensive inquiry into the opportunities for constructive reform of the Federal tax system. As agreed in our meetings on this subject, we welcome the opportunity to work with you to seek such changes as may be developed to provide a more equitable tax system and a tax climate which will foster sound economic growth in our free enterprise system. It is clear that any changes must be carried out so as to avoid sacrificing revenue required for responsible financing of our government and to provide needed debt retirement. The Treasury looks forward to continuing to work with you and your Committee in developing pertinent information both before and during the hearings beginning in November. We share your belief that this inquiry, plans for which we have discussed with you during recent weeks, offers a very real opportunity to develop recommendations for practical and achievable improvements in the tax structure which would aid in fostering increased incentives and continued economic health for our nation in the years ahead. Sincerely, /s/ Robert B. Anderson Secretary of the Treasury Honorable Wilbur D. Mills Chairman Committee on Ways and Means House of Representatives Washington 25, D. C. 1 Q y HgttASE A. n. wmsfAtim, **fflMr_ mJhJ&^ Tha Trmmmmry Mpmrtmtit mmmmmi Xmmt availing that iita tmndmrm for *mo mmrimm af fraasnry bill®, om morimm t# bm an additional immm af tha Mlla datad fmbrmry 26, X9$99 and tha athar mmrimm u bm datad my 28, X999, whieh war® ottmrmd on my IX, ve opened at tha Federal Mmmrwm ianka on my 25* Tenders wara invited far #1,000,000,0 or tha:raab®i*ta, af n~day Mlta and far itoO,OODfOO0, or tfearaabouta, ©f 183-day tha details af tha in© aarlaa ara a® follows: mm% f1-day fraaawy bills OF ACCEPTO 183-day Treasury bills JZUtSSL oumfififs B U S s Approx. Equiv. Annual lata JEStSl MllllllWllllWI—WWmiMirnMiliniK Hifh ?9«282 a/ Average ?f.273 Approx. Equiv, Animal Rata Friaa r< i 1.1 •• III In 2.BIM 2.WW 2.mm ?8.303fc/ ^8.27C^ 98.285 3.338* 3.388* 3-373* mf Ssaaptlug om tmndmr of $ » , 0 G 0 W Kxoaptlng om tandar @f 1500,000 F5 pareant af tha asBaant af 9X-*m%y billa bid far at tha Xm prism wae accaptad 67 parcant of tha mmowat of 183-day Mlla bid for at tha low priom waa accaptad TOfAi. mmms Am*MB ton AID Biatrict Appliadfar Boston Hew Tork Philadelphia Clavaland Richmond Atlanta Chicago St. houis ffinnaapalia Kansas City Ballaa San Francisco i tmAU Amtfmn m mmm. Aeaaptad m9m9om 1,531**573,000 25,f5l,000 31,392,000 9,180,000 21,560,000 171,620,000 lli,683,00O 5,315,000 36,21*9,000 10,62t*,000 66,057,000 $x9953*7oh,om H*,ti38,©00 731,1*73,000 10,958,000 26,120,000 9,059,000 17,1*91,000 7?,320,O00 Ui,683,000 S,31f,O00 2O,fli0,000 10,6_li,00Q 62,Olt5,000 SBSIIVI mBtiiefSt Ag^liad For Accaptad I XX993k9(m m99m9<m # 6,934,000 291,028,000 825,000 6,256,000 1,708,000 1,671,000 It7f0^0,000 2,167,000 10,965,00© 3,340,000 5,825,000 11,256,000 1,708,000 2,071,000 71,220,000 2,167,000 11,031,000 i*,310,000 M90,OO0 311,200,000 $x9mo9k70,mmf#858,610,000 k9m9m «bO0,cw,00fii^ 2 / Inclndaa H8,680,00O nan©a»ipatltiva tandars aeaaptad at tha average ptU* 0f f8.HS TREASURY DEPARTMENT — • M__,iF*.'IA. Jl*_Ai_l—WlfL.—tfJMg___« 140 _i- WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, Tuesday, May 26, 1959 * A-531 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated February 2 1959, and the other series to be dated May 28, 1959, which were offered on May 21, opened at the Federal Reserve Banks on May 25. Tenders were invited for $1,000,000 or thereabouts, of 91-day bills and for $U00,000,000, or thereabouts-, of 183-day The details of the two series are as follows i RANGE OF ACCEPTED COMPETITIVE BIDS: Price High Low Average 183-day Treasury bills maturing November 27, 1959 91-day Treasury bills maturing August 27, 1959 99.282 a/ 99.270 ~" 99.273 Approx. Equiv. Annual Rate Price 98.303b/ 98.278" 98.285 2.81*0$ 2.888$ 2.878$ Approx. Equiv. Annual Rate 3.338$ 3.388$ 3.373$ a/ Excepting one tender of .11100,000 V Excepting one tender of $500,000 "9$ percent of the amount of 91-day bills bid for at the low price was accepted 67 percent of the amount of 183-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted s Applied For Accepted | ll,93li,00O 693,998,000 5,825,000 11,256,000 1,708,000 2,071,000 7li, 220,000 2,167,000 12,031,000 k,310,000 h,890,000 3^,200,000 ft 6,93U,000 291,028,000 825,000 6,256,000 1,708,000 1,671,000 Ii7,0li0,000 2,167,000 10,965,000 3,310,000 h,590,000 23,535,000 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas . San Francisco $ 26,1*89,000 1,531^,573,000 25,958,000 31,392,000 9,180,000 21,560,000 171,620,000 lh,683,000 5,319,000 36,2ii9,000 10,62li,000 66,057,000 lU,ii38,000 731,1473,000 10,958,000 26,120,000 9,059,000 17,1*91,000 77,320,000 111,683,000 5,319,000 20,9UO,000 10,62^,000 62,015,ooo TOTALS £>1,953,70^,000 $L,000,li70,000c/_ $858,610,000 tt00,0?9,000d/ c/ Includes £179,256,000 noncompetitive tenders accepted at the average price of 9 3/ Includes $18,680,000 noncompetitive tenders,accepted at the average price of 98.285 141 - 7countries have won political independence. Whether these new nations swing toward East or West will depend largely on you — on what you in your generation do to help them achieve the conditions of living which give scope for the inventiveness and resourcefulness of the human mind. This, then, I conceive to be our Nationfs charge to all of us: Enter your chosen professions with a keen awareness of the lessons of the past and the challenges of the future. Apply your minds not only to the problems of daily living but also to the pressing national and international issues which must be resolved if freedom is to be preserved at home and furthered abroad. In so doing may we remember the inquiry of Edwin Markham, the American poet who was deeply dedicated to the cause of his fellow men: "Why build these cities great If man unbuilded goes. In vain we build the world Unless the builder also grows." 0O0 -5 / o «&. r &— - 6 With the maintenance of discipline in both our public and private affairs, the possibilities for the further development of the American economy are truly dazzling. We are starting off on firm ground — a fact, you may be sure, which is being carefully evaluated in other countries as well as in our own. The American private enterprise system is sound. It is healthy. It is growing. It is capable of adjusting to changes which are inherent in the growth process. It is capable of adjusting — we have recently seen — without resort to the dangerous stimulus of massive Government intervention. Economic growth is compounded from many ingredients. It requires basic research — in an atmosphere of free-ranging inquiry. It requires technological advance, following closely on the leads provided by research. It requires an efficient production process — and the planning which goes with successful marketing and distribution, It requires mobility of resources, so that the old and outmoded can give way to the new and improved without crippling after effects. It requires, finally, sufficient savings and investment to make all of these things possible. Let us never forget that the merger of Men, Money, and Minds which is the essence of the growth process can be fruitful only if we keep steadily in view this important truth: Values, in whatever form they may take — a political system, a university education, a power plant — have no meaning except in relation to people. Woodrow Wilson once said, "Sometimes people call me an idealist. Well, that is the way I know I am American." In the eyes of the world, America stands for freedom and humanity, as it has throughout our history. We can be rightly proud of the fact that the first postage stamps issued by the Republic of Indonesia turned out to bear the portraits of Washington, Lincoln, Franklin and Hamilton, side by side with the founders of the new republic. But we cannot rest complacently on the achievements of our forefathers. During the past 15 years 700 million people in 20 CO CD CO - 5But when change takes place rapidly or abruptly, a crisis may occur. Decisive new actions may be required. It is not enough, then, to look only to patterns of the past. What we require are principles which have been developed from historic precedents and out of our own experience and ingenuity. In the absence of such principles, the tendency will be to take a negative attitude. Generalities will be sought which can obscure the need for action, and reasons will be found why things should not be done. Let me give you an example right out of recent newspaper headlines There are those few who are coming forward with reasons why we should not maintain a balanced budget, why we cannot plan to pay off any of our huge debt at any foreseeable time. They cloak their arguments with the generality that more growth is needed — and then move on to the false assumptions that inflation stimulates growth and that a "creeping" erosion in the value of the dollar need be of little concern. The end result of what they are advocating is a destruction of values which will advance so slowly that it will not be noticed by the naive and trusting. How long could we expect the habits of thrift and savings which have built this country to survive in such an atmosphere? How could we under any circumstances morally justify a program which is a continuing invitation to unsoundness as a way of purporting to meet our obligations? I leave these questions with you. As educated people, I hope and believe that you will never be deluded by those who say that safeguarding the value of our money isn*t really very important. It is the responsibility of each one of us to develop convictions strong enough to replace a shallow approach of this kind. And this can only be done by dedicated thought — by the application of mind to the experience of the past and the problems of the present. More than four centuries ago, Leonardo da Vinci wrote: "Wrongly do men cry out against experience and with reproaches accuse her of deceitfulness...Experience is never at faultj it is only your judgment that is in error..." Today, a great deal — probably more than any of us can now comprehend — depends on the judgment of the American people. It is not too much to say that the future of freedom in this world may depend on what we do and what we achieve here in America during your lifetimes. We are living in a time of great international tension — but it is also a time of great promise. Our particular system of competitive enterprise is superbly equipped to meet the growth needs which are clearly foreseeable in the period just ahead. CO co CO 144 - 4Labor demands and gets higher wages which add further to costs. People are discouraged from saving — indeed, many in the fixed income groups find it impossible to save. With declining savings, sufficient capital to finance normal growth is not forthcoming, and the cost of available capital is high. Programs for expansion and improvement are cut back, and output may be restricted — at the same time that costs are rising. And so the spiral goes. Now the most hopeful aspect of this entire situation is that it happens to be one of the major problems that we can — and must — do something about. As a primary step, we can exercise the discipline and restraint needed to keep Government spending within Government income during prosperous times like the present. The evidence of growing support on the part of Congress and the public for sound fiscal policies gives hope that we can be successful in reaching this goal in fiscal i960. In other areas, also, it is within our power to keep -inflationary pressures from growing, so strong as to disrupt the* process of growth. Any practices Which act as a continual spur to costs and prices must be carefully examined. Waste and inefficiency must be eliminated — not only in Government, but wherever they may be f%unif; In all of our affairs, public and private, we must endeavor to lodk at the whole economy; not just at the sector of it wlih >'which we ourselves are most concerned. This is a task for the Mind — the third element of the merging process I mentioned earlier. What a person does is something which comes from the inner part of his being. It is the fruit of his mind. And in a free society, each individual has a personal responsibility for developing his powers of judgment and decision to the fullest, Goethe has said that what one inherits from his father he must earn all over again, or it will not be truly his. This is a penetrating commentary on the quality of wisdom required in our own day. We must earn, all over again, the freedom and security, the capacity for growth and adaptability to change, which constitute our American heritage from the past. It is true that there are periods in an individual's life, as in a nation's, when change seems to be occurring almost imperceptibly. At these times, little seems to be required beyond the application of established rules and precepts received unearned — as Goethe would say — from the past. c~> CO CD • _ • - 3Backed by public opinion, outstanding leaders of both parties in Congress are now giving strong support to a program for sound management of the Government's fiscal affairs. One of the significant developments behind this attitude is the resilience which our economy has recently demonstrated. Despite the predictions of many, the change from recession to recovery occurred with little direct Government intervention. In most sectors of activity the economy has now advanced beyond its former record highs. While there are still areas of employment dislocation, it is heartening that employment generally continues to improve noticeably contrary to some predictions that large scale Government intervention would be required to open up job opportunities for many of those out of work. These experiences have served to demonstrate once more a longstanding characteristic of the American economy. Reasonable stability of prices is not the enemy of a high rate of economic growth. Rather, we find that economic progress has thrived on the basis of sound money when the inflationary impact of war finance is taken out of the picture. A notable example is the tremendous economic growth which took place in this country during the latter part of the nineteenth century, when prices were in a general downtrend following the rise associated with the Civil War. Again, from 1910 to 1915. manufacturing production expanded by almost one-third against a background of moderate price decline. In the 1920's, also, national output increased 50 percent during an eight-year period characterized by remarkable price stability. More recently, between 1951 and 1955* a high level of prosperity was accompanied by relative stability in the broad indexes of wholesale and consumer prices. In the face of this evidence, there are still some who unwisely argue that continual deficit spending and the inflation which it promotes are somehow necessary to encourage growth. But what really happens when inflationary forces are at work in the economy? First of all, the buying power of both current earnings and accumulated savings begins to shrink. This brings cruel hardship to those who cannot bargain effectively for wage and salary increases and to those living on past savings — annuities, pensions and so on. Savings eroded through price inflation command fewer goods in exchange. They have less ability to transform human effort and ingenuity into productive capacity and in consequence their potency as a positive instrument of economic growth is seriously weakened. Second, continuing inflation brings about maladjustments in the economy which beget recession — and recession is the enemy of sustained, rewarding economic growth. When we dilute the worth of the standard by which we must measure value, capital result. equipment Businessmen at who higher prices replenish raisedislocations their theirinventories pricesnecessarily in turn. and CO i, n?" y - 2bare land for homes and streets in our spreading metropolitan areas. The development and conservation of water resources will be a major task, and so will the development of an energy base to meet a demand which may well triple. These are a few of the problems with which the process of growth will confront us. We must solve them in terms of benefits to people — and in ways which maintain and strengthen our traditional freedoms. We know that our growth will not be even; there will be difficult problems of time and adjustment. Some of the answers must wait on yet undiscovered scientific truths; others on the refinement of data already known. All require the coordinated action of millions of Americans and all require staggering amounts of money, running to the hundreds of billions of dollars. This brings me to the second point: money. From what source are we going to accumulate the necessary capital for a doubling of output over a twenty-five year period? From just one place: savings — the excess of what we earn as a people over what we spend. There is no other acceptable source. To achieve these savings, individuals must set aside a part of their earnings. Corporations must retain some earnings for capital account. Improvements and techniques which enable us to increase our savings potential through using our resources more efficiently must be constantly sought. These are the principal sources of investment funds, whether they are used to build a steel mill, a highway, a university, or a space ship to Mars. Wealth is not created merely by increasing the number of dollars in the economy. It cannot be brought into being by Government decree. Wheels must turn, hammers must fall, and people must work with mind and hand, before anything definable as wealth emerges. We owe the handsome increase in our standard of living to technology, invention, and hard work — not to any fiscal or monetary legerdemain. We live better than we used to because we produce more. There are hopeful signs in our economy that Americans are becoming increasingly aware of that simple but important fact. They are becoming increasingly alert to both the dangers and the futility of trying to bring about greater growth during periods of prosperity by simply pouring more money into the economy. With governments, as with individuals, spending in excess of income must be financed by means of loans. During periods of high activity, when the private demand for loan funds is high, a considerable part of Government borrowing must come from the banking system. Such borrowing is inflationary — it increases the number of dollars in the economy without necessarily increasing the things that can be bought with them. CO 147 TREASURY DEPARTMENT Washington FOR RELEASE A.M. NEWSPAPERS, SUNDAY, MAY 31, 1959. REMARKS BY SECRETARY OF THE TREASURY ROBERT B. ANDERSON AT THE COMMENCEMENT EXERCISES, UNIVERSITY OF HOUSTON, HOUSTON, TEXAS, 7:00 P.M., C.S.T., SATURDAY, MAY 30, 1959. This evening I should like to talk about a trilogy — Men, Money, and Minds. The effective merger of men, money and minds is an aim of the educational process. It presents pressing problems with which you as university graduates are particularly concerned. The most obvious characteristic of a civilization, society, or nation is that it is an association of people. It is directly concerned with human beings — their wants and needs, their fears and hopes, their capacities and limitations. We in this country believe that the sole purpose of a political economy is to make life for people more decent and rewarding and free. We believe further that by giving the individual the maximum chance for expression,the whole community — whether one nation or many — may more nearly reach the goal of fulfillment for all its members. This is our objective, however imperfectly we may have realized it so far. One of our greatest challenges today arises out of the fact that the human community is growing very fast — and its needs are growing in proportion to Its numbers. There are well over two and a half billion people living today. By the time you have been out of college as long as I have there will easily have been added a billion more. That means, if you please, one hundred million more Americans by the time your children sit where you do now. Talk about growth! Your generation is obviously in for a lot of it. Within the next twenty-five years we will virtually double the producing capacity of America. We are going to have to create some 35 to 40 million new jobs. We shall need something like one million additional school rooms and 30 million more homes. We shall have to build hundreds of thousands of miles of new highways and thousands of new hospitals, and somehow find room for 60 million more automobiles and trucks. We must develop more than 10 million acres of A-532 14S TREASURY DEPARTMENT Washington FOR RELEASE A.Mi. NEWSPAPERS, SUNDAY, MAY 31* 1959. REMARKS BY SECRETARY OF THE TREASURY ROBERT B. ANDERSON AT THE COMMENCEMENT EXERCISES, UNIVERSITY OF HOUSTON, HOUSTON, TEXAS, 7:00 P.M., C.S.T., SATURDAY, MAY 30, 1959. This evening I should like to talk about a trilogy — Men, Money, and Minds. The effective merger of men, money and minds is an aim of the educational process. It presents pressing problems with which you as university graduates are particularly concerned. The most obvious characteristic of a civilization, society, or nation is that it is an association of people. It is directly concerned with human beings — their wants and needs, their fears and hopes, their capacities and limitations. We in this country believe that the sole purpose of a political economy is to make life for people more decent and rewarding and free. We believe further that by giving the individual the maximum chance for expression,the whole community — whether one nation or many — may more nearly reach the goal of fulfillment for all its members. This is our objective, however Imperfectly we may have realized it so far. One of our greatest challenges today arises out of the fact that the human community is growing very fast — and its needs are growing in proportion to Its numbers. There are well over two and a half billion people living today. By the time you have been out of college as long as I have there will easily have been added a billion more. That means, if you please, one hundred million more Americans by the time your children sit where you do now. Talk about growth I Your generation is obviously in for a lot of it. Within the. next twenty-five years we will virtually double the producing capacity of America. We are going to have to create some 35 to 40 million new jobs. We shall need something like one million additional school rooms and 30 million more homes. We shall have to build hundreds of thousands of miles of new highways and thousands of new hospitals, and somehow find room for 60 million more automobiles and trucks. We must develop more than 10 million acres of A-532 bare land for homes and streets in our spreading metropolitan areas. The development and conservation of water resources will be a major task, and so will the development of an energy base to meet a demand which may well triple. These are a few of the problems with which the process of growth will confront us. We must solve them in terms of benefits to people — and in ways which maintain and strengthen our traditional freedoms. We know that our growth will not be even; there will be difficult problems of time and adjustment. Some of the answers must wait on yet undiscovered scientific truths; others on the refinement of data already known. All require the coordinated action of millions of Americans and all require staggering amounts of money, running to the hundreds of billions of dollars. This brings me to the second point: money. From what source are we going to accumulate the necessary capital for a doubling of output over a twenty-five year period? From just one place: savings — the excess of what we earn as a people over what we spend. There is no other acceptable source. To achieve these savings, individuals must set aside a part of their earnings. Corporations must retain some earnings for capital account. Improvements and techniques which enable us to increase our savings potential through using our resources more efficiently must be constantly sought. These are the principal sources of investment funds, whether they are used to build a steel mill, a highway, a university, or a space ship to Mars. Wealth is not created merely by increasing the number of dollars in the economy. It cannot be brought into being by Government decree. Wheels must turn, hammers must fall, and people must work with mind and hand, before anything definable as wealth emerges. We owe the handsome increase in our standard of living to technology, invention, and hard work — not to any fiscal or monetary legerdemain. We live better than we used to because we produce more. There are hopeful signs in our economy that Americans are becoming increasingly aware of that simple but important fact. They are becoming increasingly alert to both the dangers and the futility of trying to bring about greater growth during periods of prosperity by simply pouring more money into the economy. With governments, as with individuals, spending in excess of income must be financed by means of loans. During periods of high activity, when the private demand for loan funds is high, a considerable part of Government borrowing must come from the banking system. Such borrowing is inflationary -it increases the number of dollars in the economy without necessarily increasing the things that can be bought with them. - 3Backed by public opinion, outstanding leaders of both parties in Congress are now giving strong support to a program for sound management of the Government's fiscal affairs. One of the significant developments behind this attitude is the resilience which our economy has recently demonstrated. Despite the predictions of many, the change from recession to recovery occurred with little direct Qovernment intervention. In most sectors of activity the economy has now advanced beyond its former record highs. While there are still areas of employment dislocation, it is heartening that employment generally continues to improve noticeably contrary to some predictions that large scale Government intervention would be required to open up job opportunities for many of those out of work. These experiences have served to demonstrate once more a longstanding characteristic of the American economy. Reasonable stability of prices is not the enemy of a high rate of economic growth. Rather, we find that economic progress has thrived on the basis of sound money when the inflationary impact of war finance is taken out of the picture, A notable example is the tremendous economic growth which took place in this country during the latter part of the nineteenth century, when prices were in a general downtrend following the rise associated with the Civil War. Again, from 1910 to 1915* manufacturing production expanded by almost one-third against a background of moderate price decline. In the 1920's, also, national output increased 50 percent during an eight-year period characterized by remarkable price stability. More recently, between 1951 and 1955, a high level of prosperity was accompanied by relative stability in the broad indexes of wholesale and consumer prices. In the face of this evidence, there are still some who unwisely argue that continual deficit spending and the inflation which it promotes are somehow necessary to encourage growth. But what really happens when inflationary forces are at work in the economy? First of all, the buying power of both current earnings and accumulated savings begins to shrink. This brings cruel hardship to those who cannot bargain effectively for wage and salary increases and to those living on past savings — annuities, pensions and so on. Savings eroded through price inflation command fewer goods in exchange. They have less ability to transform human effort and ingenuity into productive capacity and in consequence their potency as a positive instrument of economic growth is seriously weakened. Second, continuing inflation brings about maladjustments in the economy which beget recession -- and recession is the enemy of sustained, rewarding economic growth. When we dilute the worth of the standard by which we must measure value, capital result. equipment Businessmen at who higher prices replenish raisedislocations their theirinventories pricesnecessarily in turn. and - 4 - J. Si Labor demands and gets higher wages which add further to costs. People are discouraged from saving — Indeed, many in the fixed income groups find it impossible to save. With declining savings, sufficient capital to finance normal growth is not forthcoming, and the cost of available capital is high. Programs for expansion and improvement are cut back, and output may be restricted -- at the same time that costs are rising. And so the spiral goes. Now the most hopeful aspect of this entire situation Is that it happens to be one of the major problems that we can — and must — do something about. As a primary step, we can exercise the discipline and restraint needed to keep Government spending within Government income during prosperous times like the present. The evidence of growing support on the part of Congress and the public for sound fiscal policies gives hope that we can be successful in reaching this goal in fiscal i960. In other areas, also, it Is within our power to keep inflationary pressures from growing so strong as to disrupt the process of growth. Any practices which act as a continual spur to costs and prices must be carefully examined. Waste and inefficiency must be eliminated -~ not only in Government, but wherever they may be found. In all of our affairs, public and private, we must endeavor to look at the whole economy; not just at the sector of it with which we ourselves are most concerned. This is a task for the Mind -~ the third element of the merging process I mentioned earlier. What a person does Is something which comes from the inner part of his being. It is the fruit of his mind. And in a free society, each individual has a personal responsibility for developing his powers of judgment and decision to the fullest. Goethe has said that what one Inherits from his father he must earn all over again, or it will not be truly his. This is a penetrating commentary on the quality of wisdom required in our own day. We must earn, all over again, the freedom and security, the capacity for growth and adaptability to change, which constitute our American heritage from the past. It is true that there are periods In an individual's life, as in a nation's, when change seems to be occurring almost imperceptibly. At these times, little seems to be required beyond the application of established rules and precepts received unearned — as Goethe would say — from the past. 1^9 •*•»_•£_ - 5But when change takes place rapidly or abruptly, a crisis may occur. Decisive new actions may be required. It is not enough, then, to look only to patterns of the past. What we require are principles which have been developed from historic precedents and out of our own experience and ingenuity. In the absence of such principles, the tendency will be to take a negative attitude. Generalities will be sought which can obscure the need for action, and reasons will be found why things should not be done. Let me give you an example right out of recent newspaper headlines. There are those few who are coming forward with reasons why we should not maintain a balanced budget, why we cannot plan to pay off any of our huge debt at any foreseeable time. They cloak their arguments with the generality that more growth is needed — and then move on to the false assumptions that inflation stimulates growth and that a "creeping" erosion in the value of the dollar need be of little concern. The end result of what they are advocating is a destruction of values which will advance so slowly that it will not be noticed by the naive and trusting. How long could we expect the habits of thrift and savings which have built this country to survive in such an atmosphere? How could we under any circumstances morally justify a program which is a continuing invitation to unsoundness as a way of purporting to meet our obligations? I leave these questions with you. As educated people, I hope and believe that you will never be deluded by those who say that safeguarding the value of our money isn't really very important. It is the responsibility of each one of us to develop convictions strong enough to replace a shallow approach of this kind. And this can only be done by dedicated thought — by the application of mind to the experience of the past and the problems of the present. More than four centuries ago, Leonardo da Vinci wrote: "Wrongly do men cry out against experience and with reproaches accuse her of deceitfulness...Experience is never at fault; it is only your judgment that is in error..." Today, a great deal — probably more than any of us can now comprehend — depends on the judgment of the American people. It is not too much to say that the future of freedom in this world may depend on what we do and what we achieve here in America during your lifetimes. We are living in a time of great international tension — but It is also a time of great promise. Our particular system of competitive enterprise is superbly equipped to meet the growth needs which are clearly foreseeable in the period just ahead. 1 ^ - 6With the maintenance of discipline in both our public and private affairs, the possibilities for the further development of the American economy are truly dazzling. We are starting off on firm ground — a fact, you may be sure, which is being carefully evaluated in other countries as well as in our own. The American private enterprise system is sound. It is healthy. It is growing. It is capable of adjusting to changes which are inherent in the growth process. It is capable of adjusting — we have recently seen — without resort to the dangerous stimulus of massive Government intervention. Economic growth is compounded from many ingredients. It requires basic research — in an atmosphere of free-ranging inquiry. It requires technological advance, following closely on the leads provided by research. It requires an efficient production process — and the planning which goes with successful marketing and distribution. It requires mobility of resources, so that the old and outmoded can give way to the new and improved without crippling after effects. It requires, finally, sufficient savings and investment to make all of these things possible. Let us never forget that the merger of Men, Money, and Minds which is the essence of the growth process can be fruitful only if we keep steadily in view this important truth: Values, in whatever form they may take — a political system, a university education, a power plant — have no meaning except in relation to people. Woodrow Wilson once said, "Sometimes people call me an idealist. Well, that is the way I know I am American." In the eyes of the world, America stands for freedom and humanity, as it has throughout our history. We can be rightly proud of the fact that the first postage stamps Issued by the Republic of Indonesia turned out to bear the portraits of Washington, Lincoln, Franklin and Hamilton, side by side with the founders of the new republic. But we cannot rest complacently on the achievements of our forefathers. During the past 15 years 700 million people in 20 - 7- 1 ^4 «L y r countries have won political independence. Whether these new nations swing toward East or West will depend largely on you — on what you in your generation do to help them achieve the conditions of living which give scope for the inventiveness and resourcefulness of the human mind. This, then, I conceive to be our Nation's charge to all of us: Enter your chosen professions^with a keen awareness of the lessons of the past and the challenges of the future. Apply your minds not only to the problems of daily living but also to the pressing national and international issues which must be resolved if freedom is to be preserved at home and furthered abroad. In so doing may we remember the inquiry of Edwin Markham, the American poet who was deeply dedicated to the cause of his fellow men: "Why build these cities great If man unbuilded goes. In vain we build the world Unless the builder also grows." oOo Cw 1- -t Mr. B_-u« ,-» bom Jim. 22, 1897 m Jtff««°a. • « * Croli-w «• « • ______ at **** Otf-U» -r ** ***** * «-. "«* *rtM__ _.e_i~_ M. 1—-"« «« «-«* ^^ ** * Worthiest, Washington* D# C» oOo WaShinet0n ' D* °" M E D I A T E Hlla_ASg Wednesday, May 27* 3£S9 « — * — »i*rf_——imJT *~ — 4 5 — w — < * . ^ "~ 3 3 ~*^ —«/ Secretary Anderson today preseat#d the Treasury Dsi>*urtawt*s Exceptional Civilian Sendee Award to Jdm.W. Barnes, an Assistaat Chief Coaissel of the In ernal Revenue Service, who is retiimag on May 31* 1959. The award which is sysbolised by a geld s_©dal and a lapel safelea was presented at ceremoaaies attended by Treasury officials, aad frieods and associates of Hr> 3orr_s la the Internal Revenue Service. It was authorised ia recogniaation of his outstanding services and co©tr3 but Ions to tfe© weak & y^ /i\ of the Internal Revenue Service, which which he hasfeeeaassociated for 3° years* Mr» Burma catered torn GoveraBeat service la X9XB as a clerk of the Civil Service Coasaission, la April, 1£20 he transferred to the Goss&ssioae^s office of the then Bureau of Internal Revenue, and ia July, 192li to the Office of Chief Counsel. Ia 1931* he was appointed Assistant Head of the Interpretative Division, which brought his to the attention of the that Chief Coaneel, 'the late Mr. Justice Jackson, who made Mr. Barms his rinol^R, assistant to supervise the general administration of that office* He was made an Assistant Chief Counsel ia 1£3?« For the next two years Mr. Burras was director of a grovtp which organised the first aajor decentralisation of Internal Revenue work before the fax Court, and his efforts ia this connection were recognised as a prime factor la the successful eoaqpletloa of this project* Mr* Surras also carried the principal respoiraibility for the Office of the CMef Counsel in the reorgaaisatioa of the Bureau which took place ia 19!>2f and in the decentralisation of the criminal work of the Internal Revenue Service ia 19&. TREASURY DEPARTMENT ^ WASHINGTON, D.C. IMMEDIATE RELEASE Wednesday, May 27. 1959 A-533 Secretary Anderson today presented the Treasury Department's Exceptional Civilian Service Award to John W. Burrus, an Assistant Chief Counsel of the Internal Revenue Service, who is retiring on May 31, 1959. The award, which is symbolized by a gold medal and a lapel emblem, was presented at ceremonies attended by Treasury officials, and friends and associates of Mr, Burrus in the Internal Revenue Service. It was authorized in recognition of his outstanding services and contributions to the work of the Internal Revenue Service, with which he has been associated for 39 years, Mr. Burrus entered the Government service in 1918 as a clerk of the Civil Service Commission. In April, 1920, he transferred to the Commissioner^ office of the then Bureau of Internal Revenue, and in July, 1924, to the Office of Chief Counsel. In 1934 he was appointed Assistant Head of the Interpretative Division, which brought him to the attention of the then Chief Counsel, the late Mr. Justice Jackson, who made Mr. Burrus his principal assistant to supervise the general administration of that office. He was made an Assistant Chief Counsel in 1937. For the next two years Mr. Burrus was director of a group which organized the first major decentralization of Internal Revenue work before the Tax Court, and his efforts in this connection were recognized as a prime factor in the successful completion of this project. Mr. Burrus also carried the principal responsibility for the Office of the Chief Counsel in the reorganization of the Bureau which took place in 1952, and in the decentralization of the criminal prosecution work of the Internal Revenue Service in 1954. Mr. Burrus was born June 22, 1897* in Jefferson, North Carolina. He was educated at Trinity College, now Duke University, Durham, North Carolina, and received his law degree from National University in Washington, D. C , in 1924, Mr. and Mrs. Burrus live at 5004 Lowell Street, Northwest, Washington, D. C. oOo ______ - 3 - jyygsm*j__^__Bc 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded 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, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular I7o. 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 - - r- . decimals, e. g.. 99.925. Fractions may net be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which vill be supplied by Federal Reserve Banks or Breeches on application therefor. Others than bariking institutions will not be permitted to submit tenders ex- cept for their cwn account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part; and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona —6__ck bills date I March 5, 1959 y ( 91 days remaining until maturity date on 'fi"_.n 'tfl'nr Seurtember 5, 1959 ) arid noncompetitive tenders for $ 50,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full ~mw at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 4, 1959 , in cash or /____ other immediately available funds or in a like face amount of Treasury bills mat ing June 4, 1959 • 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 cf the bills, does not have any exemption, as such, and los .60 (] <>.«Mif«;•>#:<i /*:*>*•M»<» ifT J V TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, May 28, 1959 • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of & 1.500,000,000 y <?r thereabouts, f cash and in exchange for Treasury bills maturing June 4, 1959 > in tne amount of $1.500.249.000 y as follows: 91 -day bills (to maturity date) to be issued "35_$T June 4^ 1959 ' , 5p_$x in the amount of $1,100,000,000 y or thereabouts, representing an additional amount of bills dated and to mature September 5, 1959 March 5, 1959 , originally issued in the amount of $ 400,147,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400^000,000 , or thereabout^, to be dated June 4, 1959 y and to mature December 5, 1959 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/fettaSSS^s. time, Monday. June 1. 1959 __,' 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 t price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT ir »„.,..v.. > . '• t -:rM tl> r~,-^»——^-J.11 .niuu.gw.i.wiijj-iii'MiM^i.——iN|||| |||| ! "_" —.a—a_____________—_•_•_•_••_•_•_•—•—•• WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, May 28, 1959* A-534 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 4, 1959* in the amount of $1,500,249,000, as follows: ' 91-day bills (to maturity date) to be issued June 4, 1959. in the amount of $1,100,000,000, or thereabouts, representing an additional amount of bills dated March 5* 1959> and to mature September 3, 1959* originally issued in the amount of $400,147,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated June 4, 1959. and to mature December 3, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 tp__the closing hour, one-thirty o'clock p.m., Eastern Daylight "Saving time, Monday, June 1, 1959. . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded In the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from Incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 4-u T_IlGmedia'tely after the closing hour, tenders will be opened at one Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 for the additional bills dated March 5, 1959. (91 days remaining until maturity date on September 3, 1959) and noncompetitive tenders for $50,000 or less for thel82 -day bills without stated price from any one bidder will be accepted In full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 4, 1959* in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 4, 1959. 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 oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of bills and thefrom conditions Federal of theirReserve Issue. Bank Copies orthe Branch. of Treasury the circular may begovern obtained any u: o ~F€ft I1MDIATE REESAS£ ^<__*©«4&yr JSay 2fr 1959 r y/i ^ ,;*. y -r , .//-. i i &y& The treasury Department announced today that approximately 2,500 applications *m<T been received to take the written examination for special enrollment to practice as Agent before the Internal Revenue Service. The examination will be given simultaneously in the offices of the District Directors of Internal Revenue throughout the country on June 24 and 25> 1959. ., , ^—^. T&e examination la being given to, provide public accountants and other quailfled persons who are not attorneys or certified public accountants an opportunity to demonstrate their technical competency to adequately represent taxpayers at all levels of the Service. The ^easury decision to give this new examination was announced last October, Applications were received in all Internal Revenue Servlee Districts in sufficient numbers to indicate a nationwide interest in the examination. The greatest number of applications were received in the Los Angeles and San Francisco Districts* Los Angeles receiving approximately 270 and San Francisco ISO* Chicago received 130 applications and Detroit 125. The period for applying for the examination has now closed, but the Treasury stated that a study is being made to determine the feasibility of holding similar examinations on a regular basis* oOo TREASURY DEPARTMENT 163 fiuwjuumimiuiimm WASHINGTON. D.C. IMMEDIATE RELEASE, Monday, June 1, 1959. A-535 The Treasury Department announced today that approximately 2,500 applications have been received to take the written examination for special enrollment to practice as Agent before the Internal Revenue Service. The examination will be given simultaneously In the offices of the District Directors of Internal Revenue throughout the country on June 24 and 25, 1959. The examination is being given to provide public accountants and other qualified persons who are not attorneys or certified public accountants an opportunity to demonstrate their technical competency to adequately represent taxpayers at all levels of the Service. The Treasury decision to give this new examination was announced last October. Applications were received in all Internal Revenue Service Districts In sufficient numbers to indicate a nation-wide interest in the examination. The greatest number of applications were received in the Los Angeles and San Francisco Districts, Los Angeles receiving approximately 270 and San Francisco 180. Chicago received 130 applications and Detroit 125. The period for applying for the examination has now closed, but the Treasury stated that a study is being made to determine the feasibility of holding similar examinations on a regular basis. 0O0 164 SBUUSS A. Mi-mmfAfm, The treasury Department annMuwed last eveaiiig that tfce tenders for two series mt treasury bills, one series t® be a® mMMmmX issue of the bills dated tfareh %9 X9$99 and th® ©ther series to be dated «?tiae k9 1959, wbiea were offered on May 28, were opene at the Federal Beearve Sealce en «fc*ne 1. fenders were invited for #1,300,000,000, or hereabouts, of 91-day bills and for |ii00,000,000, or thereabouts, of 182-day bills. Th« details of the two series are as follows; RAH3I O F Aceiran ^CltFEflTIYE BXB&i 91~day Treaeary bills ytqring September_.}•*: JffljjjE, Approve Equiv. Annual late fries •mi High &©w Average m IIII m m llli i Mi* Approx. Equiv. Annual Bate 98.232 98.236 3*kM 3.1*97* 3M9% I iliil»..iiiiilnin m n u m 3*m$ 3*m% 3.xm #2^0,000 99.210 a/ 99.20O $9.m l8t~day treasury bills totaling V Excepting 3 totaling #600,000 \f$ percent of th« of 91-day feiHe bid for at the low prica was aeceptad 70 percent of the amraii* of 182-day bills bM for at the lew price was TOTAX, nzimm APPUH> wm A® AOOIITO tr maout mmwm BisfEicfSs Bietriet % Allied For . Accepts ( Allied Fer Accepted I 22,561,000 HOStOR ll,96l,O0O $ 11,934,000 # 1,934,000 1,550,9*11,000 Hew Torte 773,066,000 805,959,000 348,666,000 fS,8^,000 Philadelphia 9,869,000 S,6|l,000 191,000 26,100,000 Cleveland 21,1*10,000 17,986,000 7,661,000 7,911,000 Richjr.ond 7,911,000 541,000 l,ola,ooo 21,718,000 Atlanta 20,293,000 1,514,00© 1,939,000 187,865,000 Chicago 120,611,000 10,662,000 66,133,000 St. Louis 12,5e%,000 13,o4,000 2,21*3,000 2,Ua,ooo Minneapolis 7,956,00© 1,475,000 9,506,000 3,115,000 86,066,000 Kansas City 29,275,000 3,168,000 3a,525,000 a,9li6,000 Dallas 12,823,000 2,434,000 12,823,000 #l,10O,3l*6,G0G«/ XOTAU #1,999,234,000 2,1*34,000 San Francisco 72,6Q3_Q0Q 23,201,000 Includes 1177,536,000 noncompetitive tenders accepted at the average price of 99.20s #946,772,000 #400,244,000^ Includes $17,495,000 uncompetitive tenders accepted at the average ' of 98.23s TREASURY DEPARTMFNT WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, Tuesday, June 2, 1959. A-536 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated March 5, 1 and the other series to be dated June 4, 1959, which were offered on May 28, were at the Federal Reserve Banks on June 1* Tenders were invited for 11,100,000,000, o thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bill details of the two series are as follows? RANGE OF ACCEPTED 91-day Treasury bills s 182-day Treasury bills COMPETITIVE BIDS? maturing September 3, 1959 t maturing December 3, 1959 « « Price 99.210a/ 99.200 99.204 High Low Average Approx. Equiv. Annual Rate 3.125$ 3.165$ 3.149$ s s s * * Price 98.254 hf 98.232 98.236 Approx. Equiv. Annual Rate 3.454$ 3-497$ 3-489$ a/ Excepting 3 tenders totaling $240,000 hf Excepting 3 tenders totaling J600,000 25 percent of the amount of 91-day bills bid for at the low price was accepted 70 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS? District Applied For Accepted % Applied For Accepted Boston # 22,561,000 * 11,961,000 t # 11,934,000 # 1,934,000 New York 1,550,941,000 773,066,000 8 805,959,000 Philadelphia 25,844,000 9,869,000 : 5,641,000 Cleveland 26,410,000 21,410,000 i 17,986,000 Richmond 7,911,000 7,911,000 s 1,041,000 Atlanta 21,718,000 20,293,000 i 1,939,000 Chicago 187,865,000 120,615,000 * 66,133,000 St. Louis 13,064,000 12,564,000 t 2,443,000 Minneapolis 9,506,000 7,956,000 t 3,115,000 Kansas City 34,525,000 29,275,000 t 4,946,000 Dallas 12,823,000 12,823,000 . 2,434,000 San Francisco 86,066,000 72,603,000 * 23,201,000 348,666,000 591,000 7,661,000 541,000 1,514,000 10,662,000 2,243,000 1,475,000 3,168,000 2,434,000 19,355,000 TOTALS #1,999,234,000 #1,100,346,000c/: #946,772,000 $400,244,000_/ of Includes #177,536,000 noncompetitive tenders accepted at the average price of 9 _ t _ ^ _. m.x*.A~+, I^A**.* «.-«.«_-+•„/! _+. t h * ATflrafffl or ice o f 98.236 tec «L w _. - 21 ** , w -,4«i»ii~ni % our laes&ership to the #i ^rie«_a Static ^mi niter regiaaal inntitutions, pot*** m hmm. CQ^Umntly &Ue4 mmm% othec la claM #f mtmm m& mmmiM. Tm mmmMimiwmm mi the later-/ sserlean as a tartta* liak in 9»Uti**Jl and miiosry *s^ci&tia»a, atti will .c ties mxxcH are £te essential i;3&*e4ie*tt of a stable my m9 itst m® taiid ^yrmat *»• #f #§§, ml lie*, m Ui, p*iwi-ia t ^ U * ! is As 1 poiate4 insf e ^ H e i ^ ti*e £*mk will mm t* e*4.1 UMi * * » n i i a s ^ U ^ x c «ft mm i* *fcle subaexlptiua uatil f0 percent of t&e total #^e*ri#tii>as #f tm imi&ttxmhip mm §*M $m* Sf___U*rly it will M t La able t» call tit* tittrd l*-atalij_§s&t ^attil iH ^exce&t #1'fc&e_HMMHMI i*&* bae>a ^aiil# *&& it ititt also tast b# *&i# tm call ike ae«oa4 $5$ »i^i-_* *f ^ur p^awni %m ttm mWwm&m mttlX at leaat a year aiaac tte mmm tea l*ftptti a ^ & u a i u u 1m tl_U w§r # #§§ *UU<ro will te ail d u e will have m ho p*M tafo* m %m Amm**^mrlm*m Bank S*|>ees&cr jo, Iff*. _md Fima&et^I f'TOfelew #tJtangly tN^memlgi that the United States p M p & l f ^ce,|>t sw_alerstii|j in the iater-Aaaericaa tmm%m§m*m im m*mm®®® &*mk isfeecor_tfs*c e nitli the agreeraeat eigttewi here •• * f * U •* «* believe itef ttfcia Beak will b* •£ great wiltae ZQ t&& ea-usatries In tillsfoensiepliereis ei^eneV lag ftaiir pwm&mt&tm mM devel©pis-g tlieir economies. He be- lieve £tmt the Wmltmi Stmtm mauld mt promptly and show iim otlier i^rieim Eep^iieefcii&fcwe Iteve tlwir i-ttereet Am min4 ewl ttot w* B£*% #111,1;wt fn# ejaatloue fc# it*l$* frftifw to iw pstmm taeir ec^snoaic life. 1GB - 21 (2) It «witheris«s fmjdf tmr paying our •ubeerlptien, (3) I* *-k** provision for the marketing of the Bank»» soenrfties in the United c -tatee, (li) The bill $»*vtdes for giving" the Bank "tihrtrequired laaunltiet andar Aa«ri«*n lav and establishes the procedure for dealing with sach legal dl*pnt»s as alght eriee ia eeertc ia the Batted Statae. (5) Finally, it province far eeereiaatton mi tie activities ef the Halted States Governor and gxceative Director ef the Inter-Anarioaa Bank tgr tea Rational Advisory Council in the saac wmy mm is aew provided by law for the United States representativce ea the Jetafnatieaal Bank and the International Monetary Pone* The hill authorltae the aperoprlatlca ef #350 aillloa to the President to pay tmr mm capital stock ia the Bank, aad also provide an aetherisatien of $100 nilUoawtteeei fiaeal year H M t a t i e n tmr payment of the United States sribeerlpUoa te the »Faed for iaaoial Operatioac.* On or after the dat« on anion this gevefaeaafc eee.pt* the agreement (hat ao later than September 30, I960), the United States will he required te nay ia #30 nillion to the Bank's capital far ordinary accretions and #50 allUea to the •Faad.* An additional appropriation of #60 million will he reqaired when eelled hy the lank bat not before September 30, 1961, to aaka a SP r^. payment te tan owtinary capital emheerlptioni the third payment will net haeeae dae hefere September 30, 1962, whan a* of m a time U idJU of ti» Latin of tnair »a esaff idLU to headed by a is also v U l be elected hy tt** hoard «£ *f la a ?lc# is t© ef of will imll juri&cal ia Lta «f legal -ill* a&lcii t&a CosKlttee hae CD It ia the ia vita a the Preeioant I7u - it The activities mad aecamte o£ ttiie "§m**T * » & » b w a v a r , /w*f ^ te mingled w_*» the operations of its ordinary departaeat, so ttot tiha security behiad the Bate's borrowing* will aot te diluted th?e^ga tee lees-lifaid loaa* ef tee wf^adtf, way la stellar to teat of the lat«n_afeioa_i Baafc* The final authority ia a Board #f i&earaers, nesting eaaaaliy, with sate agnate? apnoi&ting a ©ewarasr. fetea$ ia tee teste ef Soveraore will te ia prspsr&laa to steckteldiag, eacept test each eeaegr? ton U S additional **T_tebertei#^ votes* te ia SSMSMUSS Urgar voice to the roller corcitriee. tee teak will te controlled by a teste ef Executive iteaetsrs, pesters* tte Board of Executive Director* will consist of seveeraetsters,one appelated fey tee Hailed States, and the aix otters elected by a rather eostpla* votii^g »chs»e, which will give rafcessetetiae te sate that large sad tte emit s e w triee ead te tte varioua geographical area* of Latin tessriea* fa-teg la taa __tecutive Board will te psapectieeal. te tee votee mi tee countries which tea Sirecter* rsprseent. Except - it - ie^r aeste* $as$taatei% if «as steels ef a project Is te A — __, .. a. —. _«_..»_, 1iin MI _nnh •__ _ifS H M ,, I.» „» _ n _ m _ *ft _ x.f__t_*__a__a _J__ norct_i_r_.___ c____m_!_fv «_t__ife___e ____n i_E„ni_* _ 1 «ii ri _MM_&____maMr_k a a.aa_iM ro_r _ _ 9 K V _ J K I I cascsatiSLe• It might te aesdFal te iadleate te jet fast tears are siMiarities ate aaffesaaeaae tetaaaa the later*tesrlsaa ttmm peid-iri mm&AtmX sad lass froa ^mtwmmm% capItal than la the SaaaYaatiaaai Beak* $mmg!*1*^^ tetemau te»jlpi»^ Hwawwiiaisii. M r s * ia aaaitei ia ia tee ferns #f nsld sr dollars, so test MM will asconater fewer cUffiaaities te atilislag tea capital safe** seaiftteas ef its asaters team tee Interactional leak ass ttsd* Like tee iacarastlaaal Beak* teis institution alii asks orditaaty leans m*patfmMm Am tee curreocy leat, hot unlike tee <PBawmpie*abew^»me*awpWSS^»*e> ^P^i^asafr'-aa^papKmp^ae^^ « e^mtsass-* a^ve' * a a i « F ^w**M) *a*—pie am' s^ajPjjiFwis^pi»eeW"*e<aF—w*sii• ^p we,^*'ejiMm*'- ^ ^ ^ m i ^ m ' , ^w — a ia ail taste tesriaem mm&xlmB.. WPWST ar e e a e a e Seaa'a* sips~~a^a'akSB'ws ma*a*^a ^a^mp^MP-satismBiMm-w^ asae*^smaaiaSnp'mPsmmweeB' la view of tee special iaaas iwmm tiMi "ftei* aajr aa aade repayable psie^lslJir mw tesi% ia «te l i t r w a f ^ ewreae^. 172 • 17 mi eate aea&ar's Am 1 aalf ef ite te tae u FuGdM are te te paid te geld -tell te tee ef tee Xks part ef ^mld te ftg eaa ef te its territories* te ps? ef ia its territory, tiffcjr ef tea ffinitad ia taia is lea ef tee steer will use its mtm mi project* it amy, teeiever, paid te oo eo#tst sad sal? ia ite « 1 7Q ^ this Sype ef it ia to be saail ia ef ef tea for Specie! ef #150 adllioa, ef wkich tee United eiii te #St adilion # 1 « teiliaa* M tee Halted States is payahle ia the first date, ia eas or aare Install is providing such a large portion ef tee ite afIiratttive vote will te necessary for a men^maem-^s^^i^^ i_a*emaarse*,'^te ~_w- e v a n m ^ mi—ssMmpap-macP ^Pi|_raj_e_e eeSP tee reepeualoility of contributing to tee ef teeir in tea field ef la tea past, loans af this saseiai type eaiy ky tea United Ststes* The precedent ef ay asaar countries ia tais eras is oae tee Ma feel teat tee l*fasdst will te a _ae operatioaa s£ the Bank te aate it te ail Latin te te ef a/u - 15 i turn aea te «as ^^fted Jar pastel ttevaaaaaaa'. te eklek I retorted earlier* us* cmrauiv «SSR£ «aa iaaas af ska ifWmdA are- ce*ee sate %os*i*itjtiww mjj^ptwp* «w*»w A4P% W M R M ^ P " • • ' *v^•»*•• te apseifte prajeete* it ante te rseofatete teas sate #f. tits L_titi teerlsam counts lea i m ttes te stes aay netfeeia a poeition te easwias addifcieejel kste Issas sesaaakte entirely te tellers or otter curi*nsi_s teite can te aaad. te ftesaaa _j__i£_rse af _^_*itfii #iinl!Fnaeatti m a r s are slam ssaa mrojleess aaais^p^apap* seas ep^a* mii*'aespae^aaBHe» "ms^ppjwaqj^^wppas^^mfce* %2_i£ _Ldri_£ _3__fi^_r ^____i _:.-^_^^^f>_^>-*t_ltffl't-1f'' ________?* ermeva-w jfe s * a t e j u B # £ & ' I ap***-*" ^ppip^m-er esr-*^-^** •mr^^^mf^pF^Ph*^*^ a#^_g_i__fti-*_a-_ft __B_E ________&____!________ ___ di___Ne ia its la^MtegStaa aepeai^r ate ateiasss&y te ite ability to asdlsteiy iaarsase ite dte€ earvicinE sanaaier* tees eeaa* tries any fite stasselvas in a 4AMfteals foreign exchange situation wkite will reduce* as least teaassarilv* tteir akUULsy te re#ay "kate*1 loans* Far s k e w raaaoaa, tee **tate fee ipssiai ^fw^al&ei^1* ia tesily* in tee a^r^saay of toe borrow!©* amatory. teyseat of - u- 275 increase m&& subscribe te its «&at af tka tesraaaad capital.rt Ite bill before yen aakas as provision far t M i increase in Ska subscription of tke Onite*a States, md ealres the authorisation mi Um subscribe to this increase* specifically re* before the Salted State* can I call tela provision te tits attention ©f tits Congress sa as indication mi the anrwrnced intentions of the Salted States. While a Onited States vote for an lacrosse in tbe ea^itel can te given only wite Cea* grssafsaal authorisation, it should be understood that side increase may be reeassSsd after Ifit if tka Bate's aaarattaas te ha. Aside fro© skis $3§@ ailllm Increase ia tee Baak*s callable capital, ^kieh s__y te antlclaated after several years, tea a^reeaaiiS provides tkst tke capital of tea Baak can te increased at any tiae try a vote af tiss-thirds m§ tka Governors wite at least tlsree-fourths mi the total vating power* In brief, the capital of the Sank cannot be increased unless tka milted states as wall mm tea otter countries agree te it and te accordance with tea kill before yea, teds Increase ia capital eoold net be effected without spacial ^thorlsatioo af las. las Bank a§reeaaes provide- teas tka capital aaf be increased wtea additional funds mm tisas. reaaired fer ite epere* It is anticipated tkst see* tiaa after Sestaater » # ifal, when tee peyaeats mm tka paid-in capital have been completed, tka Bank will wish te increase las mmUMblm capital b? an additional $500 ail lion- litis increase ia capital will results a tiuree-fourths sffirastive vote ia t*m Beard af Governors, fkis srrsngeaeat ass asde te recognition af tee oonwietion af the Latin teericaa representatives skat era* vision for 4m increase in tka capital af the Beak should be aade at an early data* Sines tals iaereese would be in ste team mi callable capital and not paleVin caoitei, is would result ia tee United States asaaeiag mm additional contingent liability ef #200 telilom* As tee Fraaident poinded out ia nis sasaage, tee 0.S. representatives agreed teas sate an increeae would be dssirable, bat baiievad teas it would be wiae te nave an initial pasted of experience witn tee Bank's operations before Ska additional capital is subscribed, tke President said, "Accordingly, if tee Baak9s opsretioas are aatteUsked oa aa effective hmmAm im accordance witk expeceatioae, tee United ftetasw H i in good faith be eoaalttad to vote for tee -1* • senroes tea lank aili ante leans, repayable in tee Loans asy be », te steir'-'jwUcUai >» *m *** nriwate enterprises, la tee case of tmmm te privets entities, tee teak may require, m* a condition ef ska lean, a gnarantee by tea 3ov*rne*mt or a public financial institution of the country in wftite tea psejee* is loeatad* Haile tee lank any not finance s private project te wklck the ebjeete, is Is net rehired to ektela a tetetka tese ef tea lassaaaaiaaal sad tswatepaaat,tee-teter*te_qriasalamlepamt Bank will a aaateasiaa of 1 percent m mtt laeae* wkite u *ttt invest te iiaafd securities te eaat saw liabilities of tes on ita-tonaateM •* Its guarantees, loans of tke lank mmm be repaid la tka r e s u m e s of tee teak will revolve. parsiaas af pxiwipzl mwi interest cnre paid te dollars or tee Bank will continue to ksve &^4i*jLjr^a( y€?'&<**y®«? , l?p -u all of It mm is sell I of la tMs way, will ite bay it* af die bill« te af tee la te will f§&4 te is »as it will te aa a teasdd te 17.9 • m* «mi*«s9» nm* M M W i« K M tot*** -f m 9****f wtU b. to* tepatofc, half to iAlllmXw'tM&m teg cnpiua, net sajgr pid^ptet fMRatWI. ase ef iladr oi: ^ LaUa zai ^ n ska tea iss m:4lmxj ''Fund twill f81 ***** with Skatr e^andl^g ^ofmlnsiogas, tiay *a*-*'m^Bp ,% ^*eaat*£* ^aKHMpapees "w'^^ma'na ^s* - BF I WPHMH pHFmppjj^™e^mp*"appnK wiweBKe^^pjKj^ 182 vixhtXm is • & * • «£ y te the t%ff#iifwjt iff te as* It. is aitelater as te flUI M P f i m ia te lietto tei tentta**. 18 ~ 5* lais afreeaeat is ate being subaitted to tee its for acceptance or ratification ia accordance With tneix own conetitutioaal processes. B.a. 707a en 7073 preside the neaassary authority for participation by tka wHit-rd Ststss. da a aattex af national policy, the United Statse -••-' :- - '-">_?U" " - >* • i? ,-. ' • :**•; close relatione with the 20 other republic* in this hemisphere, we kswe had for aore than a century tea friendliest relationships wish tease countries, bote politically sad economically. -?-- ?£-" i. \v--.--.-: - ' •'...- . V,*-. - fks nee s^nV will tela te astarsia ea^ strengthen the is gpfitod relatione aad infclaate associations la world sffsirs. Lstin aaariss, which ferae a large #art of oar total 50 oercent of of ear experts go So tea these 20 countries have been running in years st an annual rate of $3-1/2 billion. Oar exports So Latin America have been around $4 biltfa A*/£. mitt lion, ^tbese countries layna'" ImiPge t u n nif 184 United States ieffurt -»* tka eetteiineaont af a new institution was cnaewiwrod late tegnss sy Bader Secretary af tsase f&Haa* A apocisllsari coaeittee far nagotiatiag sad drafting s eaaree* for ska aaa financial last f fasten sat ia Washington te January It59 at tea faa-tesrisaa Union aad drafted aa agraeasas steak was signed mm aaril § by tee r e s w e a t a tivss af ska 21 American aapahiiaa* Ikie agrnen-irir aaa widely hailed mm a gaete step forward ia Salted States-Lat-iir mas risen relatione, la a latter sa skateafsaraaae,Izasideas sUseahsaer ssatad, "t believe shams the proposed latsr *nnticaa Dews lopes nr Beak, when approved by She aaaaars ef tee Organlretina of tesrisaa States, will aske a signlfleant eeatributioa to tee con ri taring econot-ic progress ef tee Anarican tepeklics and stand ma mm enduring testijaonial se the spirit ef ©©operation among tease astloaa." 185 ~ 3 ~ including e^nslnarati^m af in the *M iate&'Mtesrlaaa financial It United States* th# eomricti* -L *. ke in 'ear lat*reet te Jain wlte the il ia •j*^"*-?: tea : pairs of tee ttw of tide -1 * in wiafeh sails sresi deal af tka initiative tine te ite _,* sj ; af an k> at .Ite pr«Mit,fefass*,rm m aaidteed *s;owte te Latin not only with This * ^Pwi^ <*» We.". ,*"'****11 So establish Steely likely to be -2- ;ig5 nanafc#skis fate ef It tea tosassi sMeaaat ia link ia skis tenia* §«rfl_rtgt_aecatetka f laa&ly te cte aaate ate ^Mteia af tika of Latin iteerlea* 'j£t*ay te af oaljr te fffffgjs- of a#M:tiiiPfflSl f inam^ng m ia immm af tea i^ojecte te an ®essa* M mmmm M m in I M 7 ite ska of tka a ^ ^ i ^ a m ofteeitteanStetee* tka United states intend t*lt£i ska tatta teer&nan eou^tries in- a teBsle** *r^J»_»» i¥» -nimi^mif—Mrttiiiiri rfflff HIM iirli «»>&*_**• *A~— '* —-J— •—•—- - — — - • — — • - * -—. W _ » ________ _. _u*J_ £____.£ ___ txoa xaoesRssnBjLn& i*nat %*s$s in*^»r^j8fflWBpxcaB0i iSwtrra&anijfr a n a nac_au. Council m m p ^ p t e a ap^sdaj^tesd o>©ss__itt,#a o f 187 TREASURY DEPARTMENT Washington STATEMENT BY SECRETARY OF THE TREASURY ROBERT B. ANDERSON BEFORE THE HOUSE BANKING AND CURRENCY DOMMITTEE, ON THE PROPOSED INTER-AMERICAN DEVELOPMENT BANK, 10:00 A.M..EST, 1EDNESDAY, JUNE 3, 1959. mmm ll af tea national Myimty Ceeaeil *p # 70» and !.fu 7W$9 af to effSSt OUar iB this af % *£. The ,,_ji^^ /9- 3 > / 'I P u Jm.\y y TREASURY DEPARTMENT Washington STATEMENT BY SECRETARY OP THE TREASURY ROBERT B ANDERSON BEFORE THE HOUSE BANKING AND CURRENCY COMMITTEE. ON THE PROPOSED INTER-AMERICAN DEVELOPMENT BANK, 10:00 A.M., EDT, WEDNESDAY, JUNE 3, 1959. Mr. Chairman: The President on May 11 sent a Special Message to the Congress recommending that the United States accept membership in the proposed Inter-American Development Bank. Attached to this message was a Special Report of the National Advisory Council on International Monetary and Financial Problems strongly recommending such action. I am appearing before you today to support the President's recommendation and urge your favorable consideration of this request. The bills before you, H.R. 7072 and H.R. 7073, provide for the acceptance of membership by the United States and make provision for authorization of the financial contribution necessary to effect our participation in this new institution. Over a major portion of our history, the United States has forged a chain of cooperation with the nations of the Western Hemisphere. Step by step, together,we have acted on matters of mutual interest and for our mutual defense. The Organization of American States, the Inter-American Defense Board, the Inter-American Economic and Social Council, as well as many bilateral commissions and boards,bear witness to this fact of hemispheric cooperation. It has become apparent in recent years that an Inter-American financial institution would be an important link in this chain. Our neighbors to the south have advocated such an institution which would be tailored specifically to the needs and demands of the economic development of Latin America. They and we believe that a financial institution dealing specifically with Latin-American problems would be of tremendous importance and assistance, not only in terms of additional financing which would become available, but even more so in terms of the greater concentration of interest, activity, and mutual understanding of the economic development problems of Latin-America. Projects for an Inter-American Bank have been discussed over many years. At Buenos Aires inAmerican 1957 at the Economic United Conference States of the joined Organization with the Latin of American States, countries the in a 1 PQ J. <y —• - 2 resolution recommending that the Inter-American Economic and Social Council convoke a specialized committee of governmental representatives to study the problems of financing economic development, including consideration of proposals for an Inter-American financial institution. Here in the United States, the conviction has grown that it would be in our interest to join with the other American Republics in founding a new bank which would concentrate on the problems of this hemisphere and in which the Latin American countries would provide a substantial part of the resources and a great deal of the initiative and management. At no time in the past have conditions appeared so propitious for establishment of an Inter-American Bank as they do at the present time. In recent years there has been a marked growth in Latin American interest in economic cooperation not only with the United States but among the various Latin American countries themselves. This new trend toward economic cooperation means, I believe, that efforts to establish a new Inter-American Bank now are much more timely than they would have been in the past and that such efforts are much more likely to be successful. United States support for the establishment of a new institution was announced'last August by Under Secretary of State Dillon, A specialized committee for negotiating and drafting a charter for the new financial institution met in Washington in January 1959 at the Pan-American Union and drafted an agreement which was signed on April 9 "by the representatives of the 21 American Republics. This agreement was widely hailed as a great step forward in United StatesLatin American relations. In a letter to the Conference, President Eisenhower stated, "I believe that the proposed Inter-American Development Bank, when approved by the members of the Organization of American States, will make a significant contribution to the continuing economic progress of the American Republics and stand as an enduring testimonial to the spirit of cooperation among these nations." This agreement is now being submitted to the governments for acceptance or ratification in accordance with their own constitutional processes. H.R. 7072 and 7073 provide the necessary authority for participation by the United States. - 3As a matter of national policy, the United States has developed over many years close relations with the 20 other republics in this hemisphere. We have had for more than a century the friendliest relationships with these countries, both politically and economically. The new Bank will help to maintain and strengthen these good relations and intimate associations in world affairs. One aspect of this relationship is our trade with Latin America, which forms a large part of our total international trade. About 30 percent of our imports come from Latin American countries, and about one-fourth of our exports go to those countries. Our imports from these 20 countries have been running in recent years at an annual rate of $3-1/2 billion. Our exports to Latin America have been around $4 billion. We sell to these countries machinery and vehicles, chemicals and textiles, and a great variety of manufactured products. Trade with the United States is also of the greatest importance to the Latin American countries. Over half of their imports annually come from the United States, and about half of their exports go to the United States. Our trade relations, therefore, necessarily loom very large in the thinking of the Latin American countries and our trade with Latin America is of tremendous importance to us. It is vital for us to continue the expansion of our trade with the American Republics. American industry also has a tremendous stake in Latin America. American companies have invested $8.8 billion in branches and subsidiaries in Latin America. Our investments in Latin America represent about 35 percent of our total foreign direct investments. In recent years U.S. investors have reinvested in Latin America annually over $200 million of their earnings. Our investments are an added reason for assisting Latin American economic development. Many of the countries of Latin America today are far from realizing their economic potential. Many of them have vast natural resources which are as yet untapped. In fact, some of these countries have never even been fully explored. With their expanding populations, they have increasing manpower to develop their resources and industries, and with further investment of capital and technical assistance, they can utilize this manpower more efficiently to produce more for their own consumption and for world markets. In Latin America as elsewhere, the main source of capital must, of course, be the work and savings of the people living there. But for these expanding economies production cannotexcept obtain bythe Importing capitalthese goodsgoods they need lrom 191 abroad and obtaining from abroad a considerable part of the necessary financing as the United States did in the last century. Private capital has been and must continue to be the major source of such financing, but there are areas in which private capital cannot be expected to do the job. The proposed Inter-American Development Bank has been designed for the particular purpose of expanding the growth of Latin America under present conditions. The Bank will provide additional needed finance by making loans to supplement other sources of credit. It will also provide assistance to these countries in formulating development programs and in engineering and organizing particular projects. Its technical assistance work will help Latin American countries in obtain- .ing capital, not only from the Inter-American Bank, but from other existing institutions, and more importantly, from the private capital market. The Inter-American Bank can assist the countries in formulating and presenting their projects and in making most effective use of their borrowing capacity. The Inter-American Development Bank is designed to enlist 'the full cooperation of the Latin American countries in a joint enterprise with the United States. All will share a part of the cost and in the responsibility for managing the institution successfully. The Bank should assist the countries in mobilizing their own resources and in encouraging domestic and foreign private capital to undertake desirable investments. By concentrating on the problems of the other American Republics, it can give close attention to their needs. The assumption by the Latin Americans of a major responsibility for management, both as lenders and as borrowers, should facilitate the harmonious economic development of all these countries. The total resources of the Bank will amount to $1 billion, of which $850 million will be the authorized capital stock for its ordinary operations, and $150 million will be the Initial resources of the "Fund for Special Operations", which I will discuss presently. The United States subscription will be $350 million, or 4l percent of the total ordinary capital of the Bank. The shares of the other members are generally in proportion to their proposed new quotas in the International Monetary Fund. Of the total capital, $400 million is to be paid-in capital, with an initial installment of 20 percent to be paid by each country on or after acceptance of membership, but in any event not later than September 30, i960. A second installment of 40 percent will be payable when the Bank burden exchange calls of 1962. 40 percent it, The onresources not the three-installment when budgets before the over September of Bank athe period calls member arrangement 30, of it, 196l, countries two not or will and before more aand spread third years. September on the their installment 30, foreign 1Q9 mk W __ - 5One-half of each installment must be paid by each member country in gold or United States dollars. The other half is paid in the national currency of the member. The second installment cannot be called unless 90 percent of the total amount due from all members on the first installment has been paid, and similarly the third installment cannot become due until 90 percent of the second installment has been paid. These provisions assure that practically all of the members must participate. The 10 percent leeway may be necessary in case one or two countries are definitely unable to provide their payments. The second part of the Bank's capital is to consist of $450 million in callable capital. This part of the capital is intended to provide a guarantee fund for the bonds, or other securities which the Bank may sell to private investors. In this way, eventually a good portion of the resources which the Bank will have for its lending operations will come from the private investors who buy its securities rather than from the public treasuries of the members. You will note that the bills before you also make provision for the marketing of these securities in the United States on the same basis as the securities of the International Bank. It is not anticipated that the Bank will find it necessary to make a call, since calls may be made only to meet the Bank's liabilities on obligations which it has issued or guarantees which it has made. Should a call be made, it will be on a pro rata basis and must be paid in gold, dollars, or the currency actually needed to discharge the Bank's obligations. The ordinary operations of the Bank will be financed from the capital subscriptions of the members, from borrowings, and from reinvested earnings. From these resources the Bank will make loans, repayable in the currency lent on normal terms for international lending. Loans may be made to the governments of member countries, to their political subdivisions, or to private enterprises. In the case of loans to private entitles, the Bank may require, as a condition of the" loan, a guarantee by the Government or a public financial institution of the country in which the project is located. While the Bank may not finance a private project to which the member country objects, it is not required to obtain a.government guarantee. The Bank may also make loans to several countries in one transaction where these loans are part of joint or regional projects. 1 QQ mi. y y - 6As in the case of the International Bank for Reconstruction and Development, the Inter-American Development Bank will charge a commission of 1 percent on all loans, which it will invest in liquid securities to meet any liabilities of the Bank on its borrowings or its guarantees. Since the ordinary loans of the Bank must be repaid in the currency lent, the resources of the Bank will revolve. As portions of principal and interest are paid in dollars or other currency that has been used to provide foreign exchange, the Bank will continue to have usable currencies available for additional loans. The Bank agreement provides that the capital may be Increased when additional funds are required for its operations. It is anticipated that some time after September 30, 1962, when the payments on the paid-in capital have been completed, the Bank will wish to increase its callable capital by an additional $500 million. This increase in capital will require a three-fourths affirmative vote in the Board of Governors. This arrangement was made in recognition of the conviction of the Latin American representatives that provision for an increase In the capital of the Bank should be made at an early date. Since this increase would be in the form of callable capital and not paid-in capital, it would result In the United States assuming an additional contingent liability of $200 million. As the President pointed out In his message, the U.S. representatives agreed that such an increase would be desirable, but believed that it would be wise to have an initial period of experience with the Bank's operations before the additional capital is subscribed. The President said, "Accordingly, if the Bank's operations are established on an effective basis in accordance with expectations, the United States will in good faith be committed to vote for the n increase and subscribe to its share of the increased capital. The bill before you makes no provision for this increase in the subscription of the United States, and specifically requires the authorization of law before the United States can subscribe to this increase. I call this provision to the attention of the Congress as an indication of the announced Intentions of the United States. While a United States vote for an increase in the capital can be given only with Congressional authorization, it should be understood that this increase may be requested after 1962 if the Bank's operations prove to be.to be as successful and as valuable as we expect them - 7- 1S4 Aside from this $500 million increase in the Bank's callable capital, which may be anticipated after several years, the agreement provides that the capital of the Bank can be increased at any time by a vote of two-thirds of the Governors with at least three-fourths of the total voting power. In brief, the capital of the Bank cannot be increased unless the United States as well as the other countries agree to it and in accordance with the bill before you, this increase in capital could not be effected without special authorization of law. I turn now to the "Fund for Special Operations" to which I referred earlier. The loans of the "Fund" are to be made on terms and conditions appropriate for dealing with special • circumstances arising in specific countries or with respect to specific projects. It must be recognized that some of the Latin American countries from time to time may not be in a position to service additional hard loans repayable entirely in dollars or other currencies which can be used to finance imports of capital equipment. There are also some projects which may be important for a general program of economic development in a country, which will contribute to an increase in its productive capacity and ultimately to its ability to service foreign debt, but which will not directly and immediately increase its debt servicing capacity. Some countries may find themselves in a difficult foreign exchange situation which will reduce, at least temporarily, their ability to repay "hard" loans. For these reasons, the "Fund for Special Operations" is intended to make loans which may be made repayable, partly or wholly, in the currency of the borrowing country. Payment of interest and amortization of these loans, to the extent that they are repayable in local currencies, will not impose a direct burden on the balances of payments of the country in which the loans are made. The "Fund" is intended for this type of extraordinary assistance in development programs, but it is to be small in comparison with the ordinary operations of the Bank. The initial resources of the "Fund for Special Operations" are to be the equivalent of $150 million, of which the United States' share will be $100 million. Of the United States contribution, $50 million is payable in the first installment and the rest at a later date, in one or more installments. Because the United States is providing such a large portion of the resources, its affirmative vote will be necessary for a loan from these resources, since a two-thirds vote is required. In accepting the responsibility of 1 QR _ U ; - 8 contributing to the "Fund for Special Operations", the Latin American countries have given an effective demonstration of their willingness to help each other in the field of economic development. In the past, loans of this special type have been made only by the United States. The precedent of cooperation by other countries in this area is one that we consider important. We feel that the "Fund" will be a very useful adjunct to the operations of the Bank to make it an Instrument fashioned to be of assistance to all Latin American countries. As I have mentioned previously, one-half of each member's subscription to the ordinary capital, and one half of its quota in the "Fund" are to be paid in gold or dollars and one-half in the national currency of the member. The gold and dollar payments in both departments are "untied" and may be used by borrowers for payments anywhere. The part of the member's subscription paid in its own currency may be used without restriction for payments of goods and services produced In its territories. These currencies, therefore, may be used to pay for exports of materials needed in connection with loans by the Bank. National currencies may also be used for payments in other countries, unless the member specifically restricts the currency to payments in its own territory. Fifty percent of the United States subscription is considered national currency in this sense, and may be used under the same terms as the currencies of the other members. The Bank will use its foreign exchange resources ordinarily only to finance foreign exchange costs of a loan project. It may, however, lend a member country its own local currency paid in on subscription to finance local currency costs, and only in special cases the Bank may provide foreign exchange to cover a reasonable portion of local currency costs, particularly If the result of a project is to increase the borrowing country's needs for foreign exchange. It might be useful to indicate to you that there are similarities and differences between the Inter-American Development Bank and the International Bank. In the Inter-American Bank a larger portion of its total resources comes from paid-in capital and less from borrowed capital than in the International Bank. Moreover, in the Inter-American Bank a larger portion of the paid-in capital is in the form Of gold or dollars, so had. that it will encounter fewer difficulties in utilizing International the Bank capital has subscriptions of its members than the 1 QC •*. W <w> - 9Like the International Bank, this institution will make ordinary loans repayable in the currency lent, but unlike the International Bank it has a supplementary "Fund for Special Operations", which will enable it to aid economic development In all Latin American countries. In view of the special circumstances affecting particular countries or projects, the loans from the "Fund" may be made repayable partially or wholly in the borrower's currency. The activities and accounts of this "Fund" however, may not be mingled with the operations of its ordinary department, so that the security behind the Bank's borrowings will not be diluted through the less-liquid loans of the "Fur\d". The organization of the Inter-American Bank in a general way is similar to that of the International Bank. The final authority is a Board of Governors, meeting annually, with each country appointing a Governor. Voting in the Board of Governors will be in proportion to stockholding, except that each country has 135 additional "membership" votes. As in the case of the International Bank, this provision gives a somewhat larger voice to the smaller countries. As in the International Bank, the active operations of the Bank will be controlled by a Board of Executive Directors, to which the Governors may delegate all but a few reserved powers. The Board of Executive Directors will consist of seven members, one appointed by the United States, and the six others elected by a rather complex voting scheme, which will give representation to both the large and the small countries and to the various geographical areas of Latin America, Voting in the Executive Board will be proportional to the votes of the countries which the Directors represent. Except for the United States, the Executive Directors and their Alternates must be of different nationalities so that at any one time 12 of the Latin American countries will have one of their nationals following the day-by-day operations of the Bank. The Bank's staff will be headed by a President, who will be elected by the Board of Governors. There is also to be an Executive Vice President, appointed by the Board of Executive Directors, on the President's recommendation. The Board of Executive Directors is to appoint a Vice President in Charge of the "Fund for Special Operations and may appoint additional Vice Presidents. The Inter-American will certain have juridical personality of legal process and will andBank be taxation given so as full toexemptions perform its infunctions matters - 10 - 7Q7 -i. y t effectively as an International financial institution. The proposed legislation includes a section to give effect to these provisions. The bill, which the Committee has under consideration, contains five basic provisions, (l) It empowers the President to accept membership in the Inter-American Development Bank for the United States in accordance with the Agreement. (2) It authorizes funds for paying our subscription. (3) It makes provision for the marketing of the Bank's securities in the United States. (4) The bill provides for giving the Bank the required immunities under American law and establishes the procedure for dealing with such legal disputes as might arise in courts in the United States. (5) Finally, it provides for coordination of the activities of the United States Governor and Executive Director of the Inter-American Bank by the National Advisory Council in the same way as is now provided by law for the United States representatives on the International Bank and the International Monetary Fund. The bill authorizes the appropriation of $350 million to the President to pay for our capital stock in the Bank, and also provides an authorization of $100 million without fiscal year limitation for payment of the United States subscription to the "Fund for Special Operations." On or after the date on which this government accepts the agreement (but no later than September 30, i960), the United States will be required to pay in $30 million to the Bank's capital for ordinary operations and $50 million to the "Fund." An additional appropriation of $60 million will be required when called by the Bank but not before September 30, 1961, to make a second payment to the ordinary capital subscription; the third payment will not become due before September 30, 19o2, when the third payment of $60 million to the paid-in capital is due. As I pointed out earlier, the Bank will not be able to call the second installment of our subscription until 90 percent of the total subscriptions of the membership are paid in. Similarly it will not be able to call the third installment until 90 percent of the second has been paid, and it will also not be able to call the second $50 million of our payment to the "Fund" until at least a year after the Bank has begun operations. In this way, $80 million will be all that will have to be paid to the Inter-American Bank before September 30, i960. The and Financial States National promptly Advisory Problems accept membership strongly Council on recommends in International the Inter-American that theMonetary United 1QQ •A. y v-» - 11 Development Bank in accordance with the agreement signed here in Washington on April 8. We believe that this Bank will be of great value to the countries in this hemisphere in expanding their production and developing their economies. We believe that the United States should act promptly and show the other American Republics that we have their interest in mind and that we are willing and anxious to help them to improve their economic life. Our relationship with Latin America has always been close, as evidenced by our membership in the Organization of American States and other regional institutions. We are joined with these countries in mutual assistance and defense pacts. We have consistently aided each other in times of stress and strain. The establishment of the Inter-American Development Bank will serve as a further link in these close political and military associations, and will strengthen the economic ties which.are the essential ingredient of a stable and strong and unified Western Hemisphere. 0O0 - 3 - 1 QQ «n> *<•:•»*> • »•:«;«:««* 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded 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, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return 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. • -w -' )gxocx-QgQGaixKiig(a_t 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 Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200.000 or less for the additiona GASdc bills dated March 12, 1959 September 10, 1959 ) 6rfr$tjf y ( 91 days remaining until maturity date on and - noncompetitive tenders for $1QQ,Q@Q or less for the fe—<_ _ 182 -day bills without stated price from any one bidder will be accepted in full 9_d_Jc~ at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June n , 1959 , in cash or BE_s_KX other immediately available funds or in a like face amount of Treasury bills maturing June 11, 1959 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 0^ 1 TREASURY DEFARTMEI.T Washington RELEASE A. M. NEWSPAPERS, ^_tt_ra-_tyr Jfrae 4/-^35a ^ —-' f * The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1.700,000,000 y or thereabouts, for cash and in exchange for Treasury bills maturing Jane 11. 1959 y of $ 1.701.228.OOP > 91 as in the amount follows: 91 -day bills (to maturity date) to be issued .Time llf 1959 in the amount of $ l.atO.OQp.000 y or thereabouts, representing an additional amount of bills dated flfergfe 12 1959 t and to mature September 10, 1959 , originally issued in the amount of $400.299.000 y the additional and original bills to be freely interchangeable. 182 -day bills, for $500,000,000 , or thereabouts, to be dated J\me XX. 1959 and to mature December TO, 1959 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/afcflmt_«_ft time, Monday, June 8, 1959 • 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 t price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT 202 WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, June 4, 1959. A-538 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 11, 1959* in the amount of $1,701,228,000, as follows: 91-day bills (to maturity date) to be issued June 11, 1959. in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated March 12, 1959, and to mature September 10,1959,originally issued in the amount of $400,299,000, the additional and original bills to be freely interchangeable. 182-day bills, for $500,000,000, or thereabouts, to be dated June 11, 1959, and to mature December 10, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 Daylight "Saving time, Monday, June 8, 1959. . 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 trom responsible and recognized dealers in investment securities lenders from others must be accompanied by payment of 2 percent of the laee amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment, by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount eye. 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 for the additional bills dated I'lareh 12, 19:>9> (91 days remaining until maturity date on September 10, 1959;-nd noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders In accordance with the bids must be made or completed at the Federal Reserve Bank on June 11, 1959, In cash or other immediately available funds or in a like face amount of Treasury bills maturing June 11, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments '.-rill 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 oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions Federal of theirReserve Issue. Bank Copies or Branch. of the circular may be obtained from any TREASURY DEP._RTI.EOT Washington STATEMENT BY JULIAN B. BAIRD, UNDER SECRETARY OF THE TREASURY FOR MONETARY AFFAIRS, BEFORE THE SENATE BANKING AND CURRENCY CCMtfTTEE, FRIDAY, JUNE 5, 1959* Mr. Chairman and Members of the Committee: I am pleased to have this opportunity to present the views of the Treasury Department concerning the proposed sale of the 4$ VA-guaranteed mortgages held in the Management and Liquidating Portfolio of FNMA. The Treasury supports the proposal because the basic objective of the proposed exchange of FNMA mortgages for 2-3/4$ bonds is to carry out one of FNMA's primary statutory purposes. This purpose, whose importance must not be lost sight of, is to manage and liquidate FNMA mortgages "in an orderly manner, with a minimum of adverse effect upon the home mortgage market and minimum loss to the Federal Government." Two incidental benefits will accrue to the Government through the carrying out of this objective by the exchange of FNMA mortgages for Government bonds. The first benefit is reduction of Government debt through retirement of the bonds acquired by FNMA in the exchange and surrender to the Treasury for cancellation. The second benefit is that retirement of these bonds properly will be reflected in the Budget as a receipt item (credited against the expenditures of FNMA) just as the purchase of the mortgages was originally reflected in the Budget as an expenditure item. These two secondary benefits, which are real and are important, are neverthele incidental to the basic purpose of the exchange, which is the carrying out A-539 - 2of FHMA's statutory obligations through liquidation with minimum adverse effect on the mortgage market and minimum loss to the Government. We do not believe that the sale of these mortgages for Treasury bonds will have any material impact upon the current mortgage market. It is not expected that the proposal will reduce in any significant amount, if at mXX the cash which otherwise would be available for investment in the mortgage market. We believe the proposal will only be attractive to institutions and other organizations which are investors in mortgages and are accustomed to the problems involved in the servicing of mortgages, and which will be able to enlarge their mortgage holdings by reducing their holdings of the 2-3/4$ Treasury Bonds. These bonds, being nonmarketable, are held by the original purchasers. This precludes the possibility of speculators buying up bonds in the market to turn in to FNMA for mortgages. The 2-3/4$ Treasury Bonds Investment Series B which will be accepted by FNMA for mortgages is an issue of nonmarke table bonds which mature in 1980 but which may be callable for redemption by the Treasury in 1975* The holders of these bonds, however, may at their election present them at any time for marketable 1-1/2$ Treasury 5-year notes. Since April 1, 1957* about $2-1/4 billion of bonds have been exchanged for marketable l-l/2$ notes. As a consequence, there are 10 separate issues of l-l/2$ notes aggregating $3.3 billion outstanding in the market in amounts ranging from $99 million to $590 million. An issue of these 1-1/2$ notes is coming due each six months, and must be redeemed in cash by the Treasury. These small issues also present market problems in that they are difficult issues in which to make market transactions because of their relatively small sizes. - 3In your telegram to the Secretary you indicated that you wished to discuss the internal revenue aspects of the proposal. On the basis of our best estimates at this time, the revenue loss would be insignificant. The proposed exchanges would constitute taxable transactions under the Federal income tax laws (for those holders subject to tax). Due to the rise in interest rates in recent years, any exchanges can be expected to result in losses from a tax standpoint. These will be long-term capital losses in most cases. The mortgages received in exchange would be valued at less than par and if paid off at maturity, or sold before maturity at more than the exchange value, would result in a gain to the holder, generally a capital gain. These same results are taking place every day in ordinary market transactions, including the market transactions I mentioned involving the 2-5/4$ Treasury Bonds. When the bonds are exchanged for l-l/2$ notes, this trans- action is nontaxable because the exchange is made pursuant to a right contain in the bonds and is viewed as merely a change in the form of investment. But the seller who then sells such notes has a taxable transaction, which at pres prices will result in a loss. The magnitude of the possible tax losses and future gains are set by the size of the proposed exchange and the present market price of the securities involved. If $555 million of mortgages are exchanged for equal amounts of Treasury 2-5/4$ bonds, the maximum loss is about 10$, or $55*5 million, with an approximate tax loss of $8.4 million (assuming a full 25$ tax effect). Repayment of the mortgages at par will result in most cases in equal gains in later years. This also involves tax revenues of approximately $8.4 million on the same basis of 25$. -4 This assumes that all purchasers will be fully subject to Federal income taxes. However, many investors who are likely to be interested in acquiring the mortgages, such as mutual savings banks and savings and loan associations, often have little or no tax liability because of a statutory deduction permitted for additions to reserves. Pension funds generally are exempt from tax. The attached table shows estimated holdings, by classes of owners, of the 2-3/4$ Treasury Bonds. It should be emphasized again that the exchange of mortgages for 2-3/4$ Treasury Bonds does not make available to owners of the bonds any tax privilege for taking losses on their bonds that they do not already possess. As a matter of fact, there is attached a schedule of outstanding 1-1/2$ Treasury notes issued in exchange for the 2-3/4$ Treasury Bonds which shows that bond-owners during the past two years have elected to take losses on the disposition of more than $2 billion of their 2-3/4$ Treasury Bonds. These are taxable transactions to the extent that the bond-owners were subject to Federal income taxes. Attachments 2-3/4$ TREASURY BONDS, INVESTMENT SERIES B (in millions of dollars) Original Subscriptions Total 1952 1951 Class of Investor Holdings Apr, go, 195? $1,847 $455 $2,300 550 164 714 124 I83 525 41 10 66 165 195 591 Subtotal 5,229 754 5,965 $2,383 Insurance companies _--Mutual savings banks Commercial & industrial banks Federal Reserve System Government investment accounts 5,558 1,252 336 127 57 5,674 1,579 1,810 796 123 — 2,714 523 ?#_»? 1,757 15,551 Pension and retirement funds State and local governments, other than pension & retirement funds Savings and loan assns., building and loan assns., and cooperative banks Individuals A H other private investors Total -- 13*574 1/ 172 .-- 2,714 2,870 Survey of ownership. 2/ Outstanding April 30, 1959 - $7,8l6 million. 209 2,704 7,8l6§/ 1-1/2$ TREASURY NOTES ISSUED IN EXCHANGE FOR 2-3/4$ TREASURY BONDS, INVESTMENT' SERIES B Outstanding May 31, 1959 Period Amount Oct. 1, 1954, to March 31, 1955 $99,108,000 April 1, 1955, to Sept. 50, 1955 198,041,000 Oct. 1, 1955, to March 31, 1956 277,542,000 April 1, 1956, to Sept. 30, 1956 144,055,000 . Oct. 1, 1956, to March 51, 1957 551,975,000 April 1, 1957, to Sept. 30,1957 551,176,000 Oct. 1, 1957, to March 31, 1958 590,195,000 April 1, 1958, to Sept. 50, 1958 555,150,000 Oct. 1, 1958, to March 31, 1959 505,574,000 April 1959 -— " 19,764,000 May 1959 70,455,000 5,521,015,000 TJD _D TREASURY DEPARTMENT Washington 3_£_EDIATE ffgt.'R-.ggg Friday, J u n e 5, 1 9 5 9 . £C - A-54-0 The Bureau of Custoas announced today that the quotas on Canadian irfieat and wheat flour prescribed in the President's Proclamation of May 28, 19ljl, as •odified, wore filled at the opening moment of the quota year, 12:00 noon, e.s.t., on May 29, 1959. TREASURY DEPARTMENT Washington IMMEDIATE RELEASE Friday, June 5, 1959. A "54° The Bureau of Customs announced today that the quotas on Canadian *heat and *heat flour prescribed to the President's Proclamation of May 28, 19Ul, as modified, *ere filled at the opening moment of the quota year, 12:00 noon, e.s.t., on May 29, 1959* r> 11 RELEASE A. X. KSWSFAPSRS, the trmmmwty Mpmrtmmmt anaouneed 3*4 stoning that the tenders for two mmrlmm mt Treasury bills, one series to be an additional issue of the bills ***** f»njfr ItiJtfJF, and the other s*rios to be dated #vm ll_ I^gf , jihi&i* were offered on <Ju*i» I*# were opened at the Federal &*#•**• Mxii^i^iiOC^f«»d«l»s were invited for $X9W^9Qm9mQ) or thereabouts, of 9X«4my hills and for #00*000,000, or thereabouts, of lSt-dey hills, the details of the tuo series are as fellswsi 1 U D 1 OF JMXSPfSB COUP® Jf 111 ilBBt 91*iay treasury M i l s maturing September 10, 1959 MSL Urn «/ W 16 80 9f*m mf $9*1M 99*xn ApprOM* Bqo.lv* Annual late .MMi'll" •«•*' —iiiliiim»« n Mini r.W» 3*xm$ 3*m% 3*m$ 182-day treasury bills Approx. Equiv« Annual Bate HI iijmwi'i mill i m 98.220 b/ 9%*XU 3*m$ 3.588* 3*m% Baeeeptiiig two tender® totalis #375,000 Kxeootiiii on© tender of #100,000 percent of the amount of 91-day bills bid for at the loir price was accepted pereent of the a&ioumt of U$*day bill® bid tor at the low primm tofAi t&H&tts APPLIES rat AW Amwtm m wmwm* msmm nmnmnt jDistriet tallied., for ioston new lOFK Philadelphia Cleveland I titf007,000 3L»_t3*,uki,M> 38,372,000 Atlanta Chicago St. Louis Minneapolis Wmmmm City Dallas San Francisco TOKftlS i 3MkM>o 10f90$,000 35*X5t,0OG _05,I&1,000 21,258,000 iaftoi#ooo 143,810*000 lit,iyi,000 §1,958,281,000 a#<BMw Accepted lk,007,000 77kiSaf000 28,372,0m t7#SUI»000 10,906,00© 3MS2,OO0 138,©fl,000 21,258,000 10,8l#,000 !§0,860,000 i%,_iAf0OC 000 Aeeepted I $,933,000 665,519,000 7,755,000 18,117,000 1,1*15,000 2,770,000 72,689,000 h9X3X9QQ0 3,1*85,000 0,075,000 2,625,000 I $811,262,000 $500,022,0004/ 5,933,000 392,3*9,000 2,755,000 22,117»O00 1,1*15,000 2,770f00O li8,089,000 li,|31,000 7,1*75,000 .,,.Af?$i, $1,200,021,0005/ Includes 1221,363,000 noncompetitive tenders Include® |t*0,793,000 ao»«wi8|J»titiiw tenders hv\ Applied for at the average price of 99.170 at the average price of 98.198 TREASURY DEPARTMENT £l2 •iagtaMB^rri^wnr7gs>i»WCTmi»—^ WASHINGTON. D.C. RELEASE A, M. NEWSPAPERS, Tuesday, June 9, 1959* k~5kl The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated March 12, 1959, and the other series to be dated June 11, 1959, which were offered on June 1*, were opened at the Federal Reserve Banks on June 8. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows: RANGE OF ACCEPTED COMPETITIVE BIDS: 91-day Treasury bills maturing September 10, 1959 Price High Low Average 99.200 a/ 99.162 " 99.170 Approx. Equiv, Annual Rate 3.1652 3.315$ 3.283$ 182-day Treasury bills maturing December 10, 1959 Price 98.220 b/ 98.186 98.198 Approx. Equiv, Annual Rate 3.521$ 3.588$ 3.565$ a/ Excepting two tenders totaling $375,000 b/ Excepting one tender of $100,000 16 percent of the amount of 91-day bills bid for at the low price was accepted 80 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 2l*,007,000 1,1*36,1*141,000 32,372,000 32,21*8,000 10,906,000 35,152,000 205,1*61,000 21,258,000 11,1*16,000 143,860,000 3J*,lUi,000 91,016,000 TOTALS $1,958,281,000 Accepted ll*,007,000 77i*,3ia,ooo 22,372,000 27,21*8,000 10,906,000 3l*,852,000 138,621,000 21,258,000 10,816,000 1*0,860,000 ll*,ll*l*,000 90,596,000 $1,200,021,000c/ Applied For Accepted $ 5,933,000 665,519,000 7,755,000 18,117,000 $ 5,933,000 392,319,000 2,755,ooo 12,117,000 1,1*15,000 2,770,000 1*8,089,000 1*, 131,000 2,61*5,000 7,175,000 2,625,000 17,71*8,000 i,la5,ooo 2,770,000 72,689,000 1*, 131,000 3,1485,000 8,075,000 2,625,000 18,71*8,000 $811,262,000 #500,022,OOOd/ c/ Includes $221,363,000 noncompetitive tenders accepted at the average price of 99.170 V Includes $1*0,793,000 noncompetitive tenders accepted at the average price of 98.193 CO CD S T A T U T O R Y D E B T LIMITATION - -j 3 AS OF May 31, 195? wllgt_n, Jj_ne,lQ> 1959 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount ^^^J^i^^9^^ of that Act, and the face amount of obligations guaranteed as to principal and interest by the 1United St ates <c*ceP< *« anteed obi gations as may be held by the Secretary of the Treasury), "shall not exceed in the • « ? « » « irion the ciurent (Act of Sepfember 2, 1958; U.S.C., title 31. sec. 757b), outstanding at any w ^ P J J " « ^ ^ S " Ae w S redemption value of any obligation issued on a discount basis which is redeemable P«?r to **tmuy at the option or tne noiaer shall be considered as its face amount." The Act of February 26, 1958, (P.L. 85-336 f}^SS^)c^^i^\;SSnX period beginning on February 26, 1958 and ending June 30, 1959, the above limitation ($283,000,000,000) 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 : _ oo Total face amount that may be outstanding at any one time $288,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills $35 ,013 ,855 ,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 33,843»030»000 27.274. 372.000 $ 96,131,257,000 84,811,447,350 50 »677»189*628 181,995.000 8.419,134.000 144,089,765,978 21,811,867,000 15,453,153,000 6,937,500,000 44.202.520.000 •• 284,423,542,978 484,254,908 49,479,392 848,642 926.000.000 976.328.034 285,884,125,920 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 106,908,750 Matured, interest-ceased 592.225 107.500.975 Grand total outstanding .<• Balance face amount of obligations issuable under above authority Mav 31 1959 Reconcilement with Statement of the Public Debt (Daily Statement of the United States Treasury Y.....-f,...f. <.?..?.. (Date) .!?...-..?..,....„}.5?. (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 285,991,626,895 2,008,373,1^5 ) . 286,302,940,106 107t?QQ«972 286,410,441,081 4l8.8l4.l86 285,991,626,895 A-542 71 4 STATUTORY DEBT LIMITATION AS O F May 31, 1959 -oco T nA Washington. June 10,1959 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 guarJ __•.„_.. —.. _. __.., ... _.. „ , .. _. ... 00Q current holder _ the Increased'by $5,000,000,0001 ' " """"', ' ' ' temporarily 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 $288 000 000 000 Outstanding Obligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills $35,013,855,000 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 33,843,030,000 27.274.372.000 $ 96,131,257,000 84,811,447,350 50,677,189,628 181, 995 , 000 8.419.134.000 144,089,765,978 21,811,867,000 15 ,453,153,000 6,937,500,000 44.202.520.000 .. 2 8 4 , 4 2 3 , 5 4 2 , 9 7 8 484,254,908 49,479,392 848,642 926.000.000 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 106,908,750 Matured, interest-ceased 592.225 Grand total outstanding ,A , Balance face amount of obligations issuable under above authority Reconcilement with Statement of the Public Debt 976.328.034 285,884,125,920 107.500.975 285,991,626,895 2,008,373,105 Mav 31 1959 #....<...?. <yZ. (Date) ?.S...£?.*...„.??.?. (Date) (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. Deduct - other outstanding public debt obligations not subject to debt limitation , ,..., J 286,302,9^0,106 10/.500*"/J 286,410 ,*Wi, Ool *K_0,ol4,lop 285,991,626,895 A-542 - 3jfrMasafteaLttt*:*** _ _. y 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 hills are subj to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded 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, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 41_, 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. - 2i.t**-'*i%:ZMf •. » 1 6 1 4 0 decimals., e. g., 99.925. Fractions nay not be used. — > •* .-*» It is urged that tenders be made on the printed forms and forwarded in the specia?. envelopes which vill be supplied by Federal Ressrve Banks or Breeches on application therefor. Others than banking Institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 anncuncerient will be made by th Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for S200,000 or less for the additiona bills dated March X99 X9S9 , ( 91 days rei_aining until maturity date on September 17, 1959 ) and noncompetitive tenders for $100,000 or less for the -"• m$— *aac) 182 -aay bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 18, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing June lb, X959 . Cash and exchange tenders will receive equal treatment. xxsx 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 cf the tills, does not have any exemption, as such, and loss Ol 7 __ JL ! TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, June 11, 1959 A X \ ~*" ^1 ^., , W^_J? • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,700,000,000 y or thereabouts, fo cash and in exchange for Treasury bills maturing June 18, 1959 > in the amount of $1,700,688,000 , as follows: ~ PJc 91 -day bills (to maturity date) to be issued June 18, 1959 in the amount of $1,200,000,000 , or thereabouts, represent- ing an additional amount of bills dated March 19, 1959 , and to mature September 17, 1959 , originally issued in the amount of $uQ0,017,0QQ , the additional and original bills to be freely interchangeable. 182 -day bills, for $500,000,000 , or thereabouts, to be dated June 18, 1959 _, and to mature December 17. 1959 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value ). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Easterry gOBBKDffxafl, time, Monday, June 15, 1959 -' 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 t price offered must be expressed on the basis of 100, with not more than three ?1 Q TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, June 11, 1959. A-5^3 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 18, 1959* in the amount of $1,700,688,000, as follows: 91-day bills (to maturity date) to be Issued June 18, 1959, In the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated March 19, 1959* and to mature September 17,1959*originally issued in the amount of $400,017,000, the additional and original bills to be freely Interchangeable. 182-day bills, for $500,000,000, or thereabouts, to be dated a June 18, 1959* ^d to mature December 17* 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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)9 Tenders will be received at Federal Reserve Banks and Branches UB. to the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving" time, Monday, June 15* 1959. . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and In the case of competitive tenders the price offered must be expressed on the basis of 100, *with not more than three decimals, e.g., 99.925. Fractions may not be used. It Is urged that tenders be made on the printed forms and forwarded In the special envelopes which will be supplied by •Federal Reserve Banks or Branches on application therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in Investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 rigfyt 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 for the additional bills dated March 19* 1959* (91 days remaining until maturity date on September 17,1959) and noncompetitive tenders for $100,000 or less for the 182-day bill's without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 18, 1959* in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 18, 1959. 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*1. 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 0O0 return Is made, as ordinary gain or loss. Treasury Federal prescribe of theirReserve Issue. Department the terms Bank Copies of or Circular the Branch. of Treasury the No. circular 4l8, bills may Revised, and begovern obtained andthe this from conditions notice, any CO JO TREASURY DEPARTMENT lashlngton, D» C* IMfeSDIATE BSLEASE Friday, June 12, 1959. A-544 PRELLMINAKy DATA ON IMPORTS *OR CONSUMPTION 07 UNMANUFACTURED LEAD AND ZINC CHAHGSABLS TO THEftUOTASESTABLISHES BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 195« QUARTERLY QUOTA PERIOD • April 1, 1959 - June 30, 1959 IMPORTS - April 1, 1^59 - June 9, 1959 ITEM 394 ITEM 393 ITEM 392 : Lead bullion or base bullion, T 1 load in pigs and bars, lead s Lead-bearing ores, flue dust,1 dross, reolaisnad lead, sorap : Zinc-bearing ores of all kinds,s Zino in blocks, pigs, or slabs; and eattes : lead, anti_onial lead, anti: except pyrites containing not : old and worn-out zino, fit : aonlal scrap lead, type metal, 1 over 3 ^ of zino I only to be reaanufactursd, zino 1 all alloys or ooabinations of s : dross, and zino skimmings * lead n«s.p.f. j Quarterly _iota :£ Quarterly Quota : Qoarterly Quota. :Quarterly Quota Iaporta t Dutiable Zins Imports 1 ^r Weight Imports 1 Dutiable. Lead Iaports 1 Dutiable Lead " (Pounds) (Pounds) (Pounds) (Pounds) ITEM 391 Country of Produotion Australia 10,080,000 Belgian Congo - Belgium and Luxemburg (total) - 10,080,000 5,040,000 5,040,000 Canada 13,440,000 13,440,000 ss> iexioo - i?eru ftia S 0 » Afrioa /ugoslovia \11 other foreign eountries (total) 14,558,236 14,880,000 11,785,109 - 33*190,613 12,880,000 8,055,822 5,440,000 7,520,000 7,349,&1 37,840,000 3°,097,480 3,600,000 3,600,000 70,480,000 60,698,530 6,320,000 5,138,979 35,120,000 24,799,824 3,760,000 1,805,482 66,480,000 36,880,000 16,160,000 6,560,000 21,048,689 5,440,000 Bolivia Italy 23,680,000 66,480,000 15,760,000 15,760,000 1,5^6,124 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 TREASURY L^ATir-Sff Washington, D« Ce B-SDIATE RELEASE Friday, June 12, 1959. A-544 PRELIMINARY DATA ON I_?0R?3 FOR CONSUMPTION 0? UHLANO. ACTUISD LEAD AKD ZINC CHARG2ABLS TO THEftUOTASESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 1958 QUARTERLY QUOTA PERIOD - April 1, 1?5? - June 30, 1959 IMPORTS - April 1, 135? _ June 3, 1959 Country of Produotion Australia ITEM 392 ITEM 391 33 Lead : Lead bullion Bullion or or base case bullion, bullion, t 1 lead in pigs and bars, lead s Lead-baaring ores, flue dust,s dross, reol&isad load, Bora? t and sattes s lead, antisocial lead, anti$ l aonial scrap Isad, typs _atal, : s all alloys or ooobinationa of :_oarterly Cuota s_iartariy Quota : 1 Isad n«s«?.f. t Dutiable. Lead Isporta ; Dutiable Lsai lEoorta (Pounds) " " " (pounds)"~ 10,080,000 10,080,000 23,680,000 ITEM 394 ITE- 393 T : s j s j Zinc-baaring ores of all kinds,: Zino ia blocks, pigs, or slabs; : except pyrites containing not : old and T^om-out zina, fit : crar 3 ^ ©f zino x only to be rsaanufactured, zino t : dross, and zino ski—sings :CSiartarly feiota jQuarterly Quota j : 1 Dutiable Zins Inports ; By ?3ight Iaports (Pounds) ~~~ (Pounds)" 21,048,689 5,440,000 Belgian Congo Belgium and Luxemburg (total) Bolivia Canada 5,040,000 7,520,000 7,349,641 37,840,000 30,037,480 3,600,000 3,600,000 5,040,000 13,440,000 13,440,000 15,920,000 10,210,805 66,480,000 66,480,000 Italy Mexioo Peru 16,160^000 Un. So. Afrioa 14,880,000 11,785,109 14,558,236 Yugoslavia All other forei&i eountries (total) 5,440,000 36,880,000 33,190,613 70,480,000 60,698,530 6,320,000 5,138,979 12,880,000 8,055,822 35,120,000 24,739,824 3,760,000 1,805,482 15,7&>,O0O 15,760,000 6,560,000 1,536,124 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,030,000 221 - 2 - Commodity Period and Quantity Unit of Quantity 1,709,000 Pound 1,531,621* 182,280,000 3,720,000 Pound Pound 182,178,566* 1,200,000 Pound Quota Filled 16,633,591 2,231,680 702,000 Pound Pound Pound 8,395,130* Quota Filled Quota Filled Imports as of May 30, 1959 Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl.. roasted peanuts but not peanut butter) ... Ry e , rye flour, and rye meal •• Butter substitutes, including butter oil, containing iy>% or more butterfat .......... Tung oil Imports through June 8. 12 mos. from August 1, 195^ 12 mos. from July 1, 195S Canada Other Countries Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries CO 22° TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE A-545 Friday, June 12, 1Q5Q. 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 May 30, 1959, inclusive, as follows: """ Unit of Quantity Commodity : Import s c as of : May 30, 1959 Tariff-Rate Quotas: Cream, fresh or sour Calendar Year 1,500,000 Whole milk, fresh or sour Calendar Year 3,000,000 Gallon 57 April 1,1959 June 30, 1959 120,000 Head 39,583 Cattle, less than 200 lbs. each. 12 mos. from April 1, 1959 200,000 Head 20,049 Cattle, 700 lbs. or more each (other than dairy cows) Gallon 38 Fish, fresh-or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish Calendar Year 36,919,874 Pound Quota Filled" Tuna fish Calendar Year 52,372,574 Pound 17,689,773 114,000,000 36,000,000 Pound Pound 78,907,050 10,848,072 5,000,000 Pound 2,232,166 July 1, 1958 3,000,000 Pound 2,595,789 July 1, 1958 80,000,000 Pound 3,378,580 13,500,000 Pound Quota Filled 350,000 Pound White or Irish potatoes: Certified seed Other 12 mos• from Sept. 15, 1958 Walnuts Calendar Year Alsike clover seed 12 mos. from Peanut oil 12 mos. from Woolen fabrics Calendar Year Woolen fabrics (Presidential Proclamation 3285 - TD 54845) May 19 - Dec. 31, 1959 46,640 1/ Imports for consumption at the quota rate are limited to 18,459,937 pounds during the first six months of the calendar year. TREASURY DEPARTMENT Washington, D. C. ___. y 1-_"L 'JD 1 ri 1 ill iLCiL.'ii.iVjil/ A-545 rlday, June 12, 1959. .The Bureau of Customs announced today preliminary figures showing the imports for •onsuraption of the commodities listed below within quota limitations from the beginning •:>f the quota periods to May 30, 1959, inclusive, as follows: Unit of Quantity Commodity Imports as of May 30, 1959 'ariff-Rate Quotas: 1,500,000 Jrearn, fresh or sour Calendar Year 38 Gallon 3,000,000 Gallon 57 120,000 Head 39,583 Jattle, less than 200 lbs. each. 12 mos. from April 1, 1959 200,000 Head 20,049 _sh, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish ...... Calendar Year 36,919,874 Pound Quota Filled Calendar Year 52,372,574 Pound 17,689,773 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 78,907,050 10,848,072 jalnuts Calendar Year 5,000,000 Pound 2,232,166 fclsike clover seed 12 mos. from July 1, 1958 3,000,000 Pound o r.qz n.|o ~,J/}>i^/ Peanut oil 12 mos. from July 1, 1958 80,000,000 Pound o ->o , * r. <_f"\ 13,500,000 Pound yuota Filled Pound A6,640 /hole milk, fresh or sour Calendar Year Jattle, 700 lbs. or more each (other than dairy cows) 1 "" April 1,1959 June 30, 1959 , ,\ma fish'"' .' 1 •Jhite or Irish potatoes: Certified seed Jother *.. foolen fabrics '/oolen fabrics (Presidential Proclamation 3285 - TD 54845) Calendar Year May 19 - Dec. 31, 1959 350,000 U [/ Imports for consumption at the quota rate are limited to 18,459,937 pounds durin the firnb sir. months of the calendar year. (continued) - 2 - Commodity Period and Quantity Unit of Quantity Imports " as of May 30, llll 1,709,000 Pound 1,531,621^ 182,280,000 3,720,000 Pound Pound 182,178,56ft 1,200,000 Pound Quota Fillec 16,633,591 2,231,680 702,000 Pound Pound Pound 8,395,120* Quota Fillec Quota Filled Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl.. roasted peanuts but not peanut butter) ... Rye, rye flour, and rye meal ... Butter substitutes, including butter oil,i containing 45$ or more butterfat Tung oil Imports through June 8. 12 mos. from August 1, 1958 12 mos. from July 1, 1958 Canada Other Countries Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE fffriday, June 12. 2224 A-546 IQRQ., The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour authorized to be entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's proclamation of May 28, 194l, as modified by the President's proclamation of April 13, 1942, for the 12 months commencing May 29, 1958, as follows: : Wheat flour , semolina, crushed or cracked. wheat, and similar wheat products Wheat Country of Origin Established : Imports : Established : Imports Quota Quota :May 29, 1958, :May 29, 1958, : :to May 28, 195 < :to May 28, 1959: (Bushels) (Bushels) (Pounds) (Pounds) L Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia Germany 100 Syria 100 New Zealand Chile Netherlands 100 Argentina 2,000 Italy 100 Cuba France 1,000 Greece Mexico 100 Panama ', Uruguay Poland and Danzig Sweden Yugoslavia Norway Canary Islands Rumania 1,000 Guatemala 100 Brazil 100 Union of Soviet Socialist Republics 100 Belgium 100 795,000 800,000 795,000 _ _, _ _ _ tmm .^, mm _ n, — _. _ — _ _ _. _ _ _ _ _ _, 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 ' 3,815,000 _ _, _ 147 — _. 661 mm _, _, 800 220 _ _ _ _ _ _. _ _ _ _ _ _ _ _ _ _ - * - 4,ooo,ooo 3,816,828 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE Friday. June 12. 1QSQ. ??5 A-546 The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour authorized to be entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's proclamation of May 28, 194l, as modified by the President's proclamation of April 13, 1942, for the 12 months commencing May 29, 1958, as follows: Country of Origin Wheat flour, semolina, crushed or cracked wheat, and similar wheat products Established : Imports Established : Imports 1958, Quota :May 29, Quota :May 29, 1958, :to May 28, 1959 :to May 28, 1959 (Pounds) (Pounds) (Bushels) (Bushels) Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia Germany 100 Syria 100 New Zealand Chile Netherlands 100 2,000 Argentina Italy 100 Cuba 1,000 France Greece Mexico 100 Panama Uruguay Poland and Danzig Sweden Yugoslavia — Norway — Canary Islands 1,000 Rumania Guatemala 100 100 Brazil Union of Soviet Socialist Republics 100 Belgium 100 795,000 800,000 795,000 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 3,815,000 — — - 147 _ — 661 — — _ _ 800 _ 220 _ - 1,000 4,000,000 >c> •},Sl6f&>£ TREASURY DEPARTMENT Washington, D. C. f i 20 "* __ y IMMEDIATE RELEASE A-547 Friday, June 12, 1959. The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour authorized to be entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's proclamation of May 28, 194l, as modified by the President's proclamation of April 13, 1942, for the 12 months commencing May 29, 1959, as follows: Country of Origin Wheat flour, semolina, crushed or cracked wheat, and similar wheat products Established : Imports Quota :May 29, 1959, :to May 30, 1959 (Bushels) (Bushels) Established : Imports Quota :May 29, 1959, :to May 30, 1959 (Pounds) (Pounds) Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia Germany 100 Syria 100 New Zealand Chile Netherlands 100 Argentina 2,000 Italy 100 Cuba France 1,000 Greece Mexico 100 Panama Uruguay Poland and Danzig Sweden Yugoslavia Norway Canary Islands Rumania 1,000 Guatemala 100 Brazil 100 Union of Soviet Socialist Republics 100 Belgium 100 795,000 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 3,815,000 800,000 795.QUO 4,000,000 3,815,000 m. TREASURY DEPARTMENT Washington, D. C. 227 IMMEDIATE RELEASE Friday, June 12, 1959. A-547 The Bureau of Customs announced today preliminary figures showing the quantities of wheat and wheat flour authorized to be entered, or withdrawn from warehouse, for consumption under the import quotas established in the President's proclamation of May 28, 194l, as modified by the President's proclamation of April 13, 1942, for the 12 months commencing May 29, 1959, as follows: Wheat flour, semolina, crushed or cracked wheat, and similar wheat products Wheat Country of Origin Established : Imports Established : Imports Quota :May 29, 1959, Quota :May 29, 1959, :to May 30, 1959; :to May 30, 1959 (Bushels) (Bushels) (Pounds) (Pounds) Canada 795,000 China Hungary Hong Kong Japan United Kingdom 100 Australia Germany 100 Syria 100 New Zealand Chile Netherlands 100 2,000 Argentina Italy 100 Cuba 1,000 France Greece Mexico 100 Panama Uruguay Poland and Danzig Sweden Yugoslavia Norway — Canary Islands Rumania 1,000 Guatemala 100 100 Brazil Union of Soviet Socialist Republics 100 100 Belgium 795,000 3,815,000 24,000 13,000 13,000 8,000 75,000 1,000 5,000 5,000 1,000 1,000 1,000 14,000 2,000 12,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 3,815,000 800.000 7-9-77000- 4,0: .vase ;\> _:<_d TREASURY D_PARO_I5_IT Washington, D. C. IMMEDIATE RELEASE A-5^8 Friday, June 12, 1959. The Bureau of Customs announced today the following prelindnary figures showing the imports for consumption from January 1, 1959, to May 30, 1959, 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 : Quantity : Imports as of May 30. 1959 164,468 Buttons 765,000 Gross Cigars 180,000,000 Number Coconut oil 403,200,000 Pound 54,849,503 Cordage 6,000,000 Pound 2,143,685 (Refined Sugars (Unrefined Tobacco 5,850,000 1,662,244 18,658,000* 1,904,000,000 Pound 837,890,000* • Pound Information furnished by Denartment of Agriculture. 4,085,877 c?y TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE A-548 Friday, June 12, 1959. The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to May 30, 1959, 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 Quantity Imports as of May 30. 1959 164,468 Buttons 765,000 Gross Cigars , 180,000,000 Number 1,662,244 Coconut oil 403,200,000 Pound 54,849,503 Cordage 6,000,000 Pound 2,143,685 (Refined Sugars (Unrefined .• Tobacco 5,850,000 18,658,000* 1,904,000,000 Pound 837,890,000* Pound Information furnished by Department of Agriculture. 4,085,877 -«£COTTON WASTES (In pounds) * , +b«.n 1-3/16 inches in length, COMBER WASTE, LAPtoASTB, SLlViJt WAOI * thtt not more than 33-1/^Pe^" 1.3/16 inches or more Country of Origin Established TOTAL QUOTA 4,323,457 United Kingdom . e . • * 239,690 Canada 227,420 France • . • . . . * * * 69,627 British India. a . o • 68,240 Netherlands • 44,388 . o • • Switzerland , 38,559 e • • • Belgium . • • 341,535 • • • • Japan . . • • 17,322 China . . . . 8,135. . . . . Egypt o . • • 6,544 . . . . Cuba ... • . • • 76,329 Germany • a « • • • . 21-263 e . • • Italy If Included in total imports, column 2 Prepared in the Bureau of Customs. Total Imports _ Sept. 20, 19 58, tc_j_rn* 8, 1251 1,448,232 .239,690 50,304 Established 33-1/3% of Total. Quota 1,441,152 75,807 22,747 14,796 12,853 24,935 ________ 25,443 7.088 Imports 1/ Sept. 20, 19 58 to June 8.. 1252. 1,441,152 oo CO CO TREASURY DEPARTMENT Washington, D. C IMMEDIATE RELEASE Friday. June 12. 1Q*5Q. A-5^9 •Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) Cotton under 1-1/8 inches other than rough or harsh under 3/^" Imports September 20, 19^8 ~ June 8, 1959 ~~ Country of Origin Established Quota Imports Country of Origin Established Quota Imports Egypt and the Anglo- Honduras'..... 752 Egyptian Sudan . 783,816 Peru 247,952 British India 2,003,483 China 1,370,791 Mexico 8,883,259 Brazil 6l8,723 Union of Soviet " Socialist Republics ... 475,124 Argentina 5,203 Haiti 237 Ecuador 9,333 752 ' 10,064 8,883,259 618,723 327,702 " Paraguay ...... .... Colombia Iraq... ".... British East Africa ... Netherlands E. Indies . Barbados l/Other British W. Indies Nigeria 2/Other British W. Africa 3/0ther French Africa ... Algeria and Tunisia ... ' :./ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. \J Other than Gold Coast and Nigeria. ,/ Other than Algeria, Tunisia, and Madagascar. Cotton 1-1/8" or more Imports August 1, 1958 - June 8, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation Imports 1-3/8" or more ' 1-5/32" or more and under 1-3/8" (Tanguis) -1-1/8" or more and under 1-3/8" 39,590,778 39,590,778 1,500,000 1,500,000 4,565,642 4,565,642 - 871 124 195 2,240 71,388 21,321 5,377 16,004 689 TREASURY DEPARTMENT Washington, D. C. °o IMMEDIATE RELEASE A-5^9 Friday, June 12,, 1959. Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas established by the President's Proclamation of September 5, 1939, as amended COTTON (other than linters) (in pounds) , Cotton under 1-1/8 inches other than rough or harsh under 3 A " Imports September 20, 19 ^# - June 8, 1959 Country of Origin -.;vrP^ an<3- the AngloIgyptian Sudan . ... ?er; British India , China , ;'.2XiCO Brazil , Union of Soviet Socialist Republics Argentina , Haiti , Ecuador , Established Quota 783,816 247,952 2,003,^83 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports " 10,064 8,883,259 618,723 327,702 — — Country of Origin Established Quota Honduras' Paraguay Colombia Iraq British East Africa ... Netherlands E. Indies . Barbados l/0ther British W. Indies Nigeria 2/0ther British W. Africa 3/0ther French Africa ... Algeria and Tunisia ..• Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. Other than Gold Coast and Nigeria. Other than Algeria, Tunisia, and Madagascar. Cotton 1-l/8" or more Imports August 1, 1958 - June 8, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation Imports I-3/8" or more 39,590,778 1-5/32" or more and under 1-3/8" (Tanguis) 1,500,000 1-1/8" or more and under 1-3/8" 4,565,642 39,590,778 1,500,000 4,565,642 752 - 871 124 195 2,240 71,388 21,321 5,377 16,004 689 752 - - .yx,. COTl'OW PASTES (In pounds) COTTON CARD STRIPS made-from cotton having a staple-of les« than 1-3/16 inches in length, COMBER WASTE, LAP WASTE, .SLIVER WASTE, AND ROVINQ WASTE, V/HETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUEs Provided, -however, that not more than -33-1/3 percent of the quotas shall' be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the- case- of the following countries; United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italys Country of Origin Established TOTAL QUOTA United Kingdom . . 4,323,457 • a Canada . 239,690 France . . . . . . . 227,420 British India . . o • 69,627 Netherlands . . . 68,240 * . Switzerland . . . » e . . 44,388 Belgium ..... a9 99 38,559 a . Japan . . . . , < 341,535 China . 17,322 ' . * . « a. » 9 . • Egypt . . . . . 8,135 9 9 Cuba . . . 6,544 Germany » . . • 9 9 » 76,329 . 9 . Italy . • a . . 21,263 5,482,509 if Included in total imports, column 2. prepared in the Bureau of Customs. t Total Imports % Established s ~ Imports t Sept. 20, 19 58, to s 33-1/3* of : Sept. 20, 19 58 Total Quota ; to June B. 1959 _L_J__, 125SL 1,448,232 239,690 1,441,152 1,441,152 75,807 50,304 22,747 14,796 12,853 24,935 6., 5 80 1,769,741 25,443 7,088 24,935 6,580 1,599,886 1,472,667 T/ 3 3 BBfflASB A. H. HSWSPAPEBS, Taeaday, J_w 16, l?g9. "> e> • ^ fhe Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue ef the M i l s dated March 19, 1959, and the ether series to be dated June 18, 1959, which were offered en June 11, were opened at the federal Reserve Banks on June X$. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for 1500,000,000, or thereabout*, of 182-day bills. The details ef the two series are as follows. 91-day Umt OF ACCEPTED bills bills maturing COMPETITIVE MWSt JStSHSL iZ__2_t_ High Low Average 99.100 99,170 99.172 Priee m* 3*2IMI% 98.256 3*k$® 3.284% 3.276JI n*m 3.48« 98.218 of the amount of 91-day bills bid for at the low ?ric< of the amount of 182-day bills bid for at the lew price 86 TOTAL mmm A?vum FOR A S ACCSPIED BY USUAL mmim DISTRICTS: Applied For Accepted Applied for St. Louis Minneapolis Kansas City Bellas San Francisco # 26,719,000 1,370,748,000 29,047,000 50,157,000 16,528,000 32,160,000 237,044,000 29,11*2,000 8,f|0,0O0 1*5,014,000 20,162,000 # 2,959,000 586,962,000 9,91*1,000 18,950,000 1,292,000, 3,697,000 71,871,000, 19,422,000 3,357,000 7,991,000 4,823,000 tomis 11,918,722,000 16,616,000 781,224,000 14,047,000 44,713,000 16,022,000 29,337,000 358,748,000 27,587,000 7,530,000 35,674,000 19,789,000 1*9,220,000 |1,2OO,5O7,OO0_/ District lew Tork Philadelphia Richmond Atlanta b/ # ••. ,v» Fries $247,769,000 noncoiapetitive tenders Includes $50,240,000 noncoirjpetiUre tenders 'hh Accepted 1 2,959,000 ,368,848,000 g ..,991,000 ^ 18,950,000 ° 1,292,000 3 3,697,000 g 45,703,000 I 19,122,000 a> 2,7t9,000 <_ 7,949,000 q 4,823,000 #751,565,000 ®009xm9QWjf price ef 99*2$ at the at the average prise of 98.238 TREASURY DEPARTMENT WASHINGTON, D.C RELEASE A. M. NEWSPAPERS, Tuesday, June 16, 1959. A-550 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated March 19, 1959, and the other series to be dated June 18, 1959, which were offered on June 11, were opened at the Federal Reserve Banks on June 15. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows* RAKGE OF ACCEPTED COMPETITIVE BIDSs Price High Low Average 182-day Treasury bills maturing December 17, 1959 91-day Treasury bills maturing September 17, 1959 99.180 99.170 99.172 Approx. Equiv. Annual Rate Price 98.256 98.230 98.238 3.244$ 3.284$ 3.276$ Approx. Equiv. Annual Rate 3.450$ 3.501$ 3.486$ 82 percent of the amount of 91-day bills bid for at the low price was accepted 86 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted s Applied For Accepted $ 2,959,000 586,962,000 9,991,000 18,950,000 1,292,000 3,697,000 71,871,000 19,422,000 3,357,000 7,991,000 4,823,000 20,250,000 $ 2,959,000 368,848,000 4,991,000 18,950,000 1,292,000 3,697,000 45,703,000 19,122,000 2,729,000 7,949,000 4,823,000 19,040,000 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco t 26,719,000 1,370,748,000 29,047,000 50,157,000 16,528,000 32,160,000 237,044,000 29,142,000 8,930,000 45,034,000 20,162,000 53;051,000 16,616,000 781,224,000 14,047,000 44,713,000 16,022,000 29,337,000 158,748,000 27,587,000 7,530,000 35,674,000 19,789,000 49,220,000 TOTALS $1,918,722,000 $1,200,507,000a/: $751,565,000 $500,103,000b/ _/ Includes $247,769,000 noncompetitive tenders accepted at the average price of 99 0/ Includes $50,240,000 noncompetitive tenders accepted at the average price of 98.238 June 2, 1959 MS>OUM)UK TO MR. HAETLN L. MOORE: The following transeetioeis were aade ia direst end guaranteed eeeuritiee of the Groverastent for Treasury investments end ether aeeounts during the month of tfey 1959 s Purchases |98,443,$00.00 • **** ••••• .......... ,,4^1^,600.00 ** MET PURCHASES. $53,131,900.00 r==___=====_=_= •Includes purchase ef #7,156,000.00 face anount U.S. Treasury m i l s . **Includes sales of $10,000,000.00 face amount U.S. Treasury Bills. Chief, Investments Branch Division ef Deposits & Investment* U 5 o -y. o o-OJ U5 1UK TREASURY DEPARTMENT £~ <y _• WASHINGTON, D.C yi IMMEDIATE RELEASE, ^Friday ,-May A 3 , 1959. A-526- During *£^%lf 1959, market transactions in direct and guaranteed securities of the government for Treasury investment and other accounts resulted in net purchases by the Treasury Department of • (^13,951,000. oOo O Q ~' _. «-* ! TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Monday, June 15, 1959. A-551 During May 1959, 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 $53,131,900. oOo r ; '-\ w >L» y UNITED STATES NET MONETARY GOLD TRANSACTIONS WETH FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS January 1, 1959 - March 31, 1959 (in millions of dollars at $35 per fine ounce) Negative figures represent net sales by the United States| positive figures, net purchases First Quarter Country 1959 Bank for International Settlements .... -$7.0 International Monetary Fund ........ -8.8 Japan ^h9.9 Netherlands -29.9 Philippines ...•• 5.0 Vatican • -1.2 Other -.9 Total Figures do not add to total -$92.6 because of rounding. y o CD CO CD RELEASE A.M. NEWSPAPERS Wednesday, June 17, 1959 A-552 The Treasury Department today made public a report of monetary gold transactions with foreign governments, central banks and international institutions for the first quarter of 1959. The net sale of monetary gold by the United States in this period amounted to $92.6 million. A table showing net transactions, by country, for the first quarter of 1959 is printed on reverse side. TREASURY DEPARTMENT RELEASE A.M. NEWSPAPERS Wednesday, June 17, 1959 A-552 The Treasury Department today made public a report of monetary gold transactions with foreign governments, central banks and international institutions for the first quarter of 1959. The net sale of monetary gold by the United States in this period amounted to $92.6 million. A table showing net transactions, by country, for the first quarter of 1959 is printed on reverse side. UNITED STATES NET MONETARY GOLD TRANSACTIONS WETH FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS January 1, 1959 - March 31, 1959 (in millions of dollars at $35 per fine ounce) Negative figures represent net sales by the United States; positive figures, net purchases First Quarter Country 1959 Bank for International Settlements .... -$7.0 International Monetary Fund ......... -8.8 U apan ««».a...»eae«eaee«e — L\y a 7 Netherlands ....... • -29.9 Philippines .••••• 5*0 vax>ican ....... ........... —_.._ u~on er ......«...«..«.«.•. — • • Total -$92.6 Figures do not add to total because of rounding. - 3- JMfe______-_j* _4i *— ' mi. frcan 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 subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from an taxation now or hereafter imposed on the principal or interes 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 inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo 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 cluded frcan 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 betveen the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity daring the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular _fo. 418, Revised, and this notice, prescribe the terns of the Treasury bills and govern the conditions of their issue. Copies of the circular may "be obtained from any federal Reserve Ban!: or Branch. - 2 - r ?/ir? £**•-- 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 Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hoiir, 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona bills dated March 26, 1959 y ( 91 days remaining until maturity date on September 24, 1959 ) and noncompetitive tenders for $ I Q Q QQQ or less for the i_B$ ~ $__# 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the re tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 25, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills mat ing June 25, 1959 . 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 los 243 TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, June 18, 1959 J\ —^A 3 ^ • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,700,000,000 , or thereabouts, f cash and in exchange for Treasury bills maturing June 25, 1959 , in the amount xxi^x of $1,699,708,000 , as follows: 91 -day bills (to maturity date) to be issued June 25, 1959 , in the amount of $ 1,200,000,000 y or thereabouts, representing an additional amount of bills dated March 26, 1959 and to mature September 24, 1959 , originally issued in the a^Jx amount of $ 400,149,000 f the additional and original bills to be freely interchangeable. 182 -day bills, for $ 500,000,000 , or thereabouts, to be dated ______ piijH June 25, 1959 g_|J , and to mature " December 24, 1959 pi? The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be Issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/fet&82ftB£& time, Monday, June 22, 1959 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 t price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, June 18, 1959. A-553 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing June 25, 1959, in the amount of $1,699,708,000, as follows: 91-day bills (to maturity date) to be issued June 25, 1959, In the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated March 26, 1959, and to mature September 24, 1959,orlginally issued in the amount of $400,149,000, the additional and original bills to be freely interchangeable. 182-day bills, for $500,000,000, or thereabouts, to be dated June 25, 1959, and to mature December 24, 1959. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 Daylight Saving time, Monday, June 22, 1959. . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, ^with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 for the additional bills dated March 26, 1959, (91 days remaining until maturity date on September 24,1959) and noncompetitive tenders for $100,000 or less for the 182-day bills, without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 25, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 25, 1959. 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 0O0 loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions Federal of theirReserve issue. Bank Copies or Branch. of the circular may be obtained from any TREASURY DEPARTMENT Washington Statement by David A. Lindsay, Assistant to the Secretary, before The Committee on Finance of the United States Senate, with respect to H. R. 10, 10:00 A.M., Wednesday, June 17, 1959 It is a privilege to appear before this Committee. We have been asked to testify on H. R. 10, a bill "to encourage the establishment of voluntary pension plans by self-employed individuals". H. R. 10 would allow self-employed people to deduct amounts up to 10 percent of their otherwise taxable income from selfemployment, provided they invest such amounts in certain specified types of retirement funds, annuities and insurance contracts. Individual retirement funds which are not made up exclusively of annuities and insurance contracts must be placed with a bank as trustee. There would be an annual ceiling on the deduction of $2,500 and a lifetime ceiling of $50,000. The bill would allow individuals who are 50 years of age or over at the effective date to increase their regular deductions by one-tenth for each year that their age exceeds 50. These extra deductions would cease after the taxable year in which the individual reaches the age of 70. Participants withdrawing the funds invested under the plan after reaching the age of 65 would generally be required to include the entire proceeds in taxable Income in the year the withdrawal A-554 - 2 - occurs. However, a special averaging procedure would apply where a participant withdraws his funds in a lump sum in one taxable year after the age of 65. The tax on such proceeds would be limited to five times the tax resulting from including one-fifth of the lump sum in the participant's taxable income in the year of withdrawal. Withdrawals made before the participant reaches the age of 65 would be taxed at a rate of 110 percent of the liability otherwise resulting from including such sums in taxable income. However, if such withdrawals amount to $2,500 or more they generally would be taxed at 110 percent of the liability resulting from spreading them in equal parts over the taxable year and up to four immediately preceding years. To prevent indefinite postponement of tax on the sums invested under the plan, in all cases withdrawals of such funds would have to be started not later than the age of 70. The Treasury opposes this bill. H. R. 10 will involve a substantial loss of revenue, estimated at $3&5 million for the first year, which, in the interest of fiscal soundness, we can ill afford. This legislation should be considered against the background of our present fiscal position. We are now moving towards the close of the fiscal year with a deficit which may be in the order of magnitude of $12.5 to $13 billion. We will shortly appear before this Committee requesting an extension for another year of the Korean War - 3corporate and excise tax rates. As you know, the President in his Budget Message to the Congress this year stated that the budget outlook for i960 makes it essential to extend present tax rates for corporation profits and certain excise taxes another year beyond their present expiration date of June 30, 1959. Not only will the budget outlook for i960 make the rate extension essential, but we are also of the opinion that a reduction of corporate rates is not justified when reduction in rates for individuals cannot properly be made. By the same token, we do not believe it is appropriate to permit selective tax relief when more general tax reduction cannot properly be made. There are many alleged discrepancies in the tax law, and it is difficult to pick out just one and provide tax relief for a particular group of taxpayers when you do not have a general leavening or a total amount of money that you can release and agree as to how it should be distributed. The Treasury recognizes that present law does not give selfemployed persons tax treatment for their retirement savings comparable to that now accorded to employees covered by employer-financed pension plans. Employee pension plans, if arranged on a non-discriminatory basis, receive favorable tax treatment. At present, employers are permitted to take current deductions in computing their taxable incomes for contributions which they make to nondiscriminating pension funds for the benefit of their employees. -4- 248 No tax is imposed on the employee until the pensions are received after retirement. The opportunity to postpone the receipt and the taxation of income currently set aside in pension funds makes it possible for employees who are covered by such plans to secure larger net retirement incomes after tax from any given payment by an employer. Qualified pension trusts have a further tax advantage. The investment income earned on the funds held by the pension trusts is tax exempt until received by employees as part of their pensions. There is, in effect, a tax-free build up on nontaxed earnings. Though there is.no final tax exemption of the income paid by employers, or of the income earned on accumulated funds, the advantages of postponement of tax on both are important, and combine to increase materially the net retirement income of employees. The purpose of H. R. 10 is to remove a discrimination or inequity in the tax law affecting self-employed persons. I believe it is fair to say that sponsors of this legislation have worked conscientiously for many years in an attempt to remove the inequity in a manner which they believe to be modest from the point of view of the taxpayers benefited and from the point of view of the impact on the revenues. In the attempt to remove the inequity, however, new inequities and new discrepancies are created. This, in turn, will create pressures for still further modifications in the tax law to eliminate the new inequities created by this legislation. The tax benefit which has been conferred on those covered under private and certain public pension plans Is not the result of any legislative purpose to discriminate in favor of one group to the exclusion of others. The present tax treatment of employees covered by pension plans arose, to a significant degree, in recognition of the circumstances under which pensions are usually provided. Employees typically do not acquire vested rights under pension plans until they have reached a certain age or work for a company for a specified number of years or both and may forfeit their pensions if they leave the firm before acquiring vested rights. Consequently, the present postponed tax treatment granted to employees covered by pension plans is, in a sense, a practical solution since to tax all employees currently on their potential benefits under pension plans would be unfair to those who never receive actual benefits. A similar reason does not exist for allowing self-employed people to postpone payment of tax on their retirement savings since they always retain rights to such funds. Moreover, self-employed people may often have offsetting advantages over employees with respect to their retirement. Many professional persons and other self-employed people do not have definite retirement ages. They can and often do prefer to work at £0U - 6 least on a reduced schedule long after employees are required to retire. Self-employed persons therefore are able to spread their earned incomes over longer periods. In this connection, it should be noted that there is no need to retire in order to receive the full benefits under H. R, 10. H. R. 10 would grant the self-employed unique advantages under the tax law. First, under H. R. 10, self-employed persons may voluntarily establish their own private pension plans without making provision for the retirement of their own employees. Thus for the first time voluntary plans may, subject to the limitations under the bill as to amounts, be adopted for the benefit only of the employer. Second, the self-employed persons may time contributions to suit their individual needs without losing the benefits of past or future contributions. Self-employed persons would not have to finance their investments in the specified funds out of current earned income but Instead could finance such investments by utilizing past savings. Third, although H. R. 10 is intended to provide tax relief for funds set aside for retirement purposes, there is no effective means provided to prevent or discourage the withdrawal and consumption of the specified savings before the age of retirement. The relatively moderate "penalty" imposed on such withdrawals under 4_ y ->- -7 H. R. 10 would frequently be more than offset by the tax advantages resulting from spreading the income over as long as a five-year period for tax purposes. Consequently, people with fluctuating incomes would have the incentive to use the plan for averaging their incomes rather than for retirement purposes, since they would be able to withdraw savings made under the plan with tax advantages when their incomes are relatively low. The Treasury has estimated the revenue loss under H. R. 10 at $365 million on a full year's basis. About $100 million of this revenue loss would be accounted for by the extra deductions granted to those already 50 years of age or over on the effective date of the bill. These estimates assume that actual deductions would be only a part of the maximum allowable, ranging from 15 percent of the maximum for taxpayers with less than $3,000 of income to 66-2/3 percent of the maximum for those with more than $20,000 of income. Comment has been received to the effect that because of the uncertainty regarding the extent to which eligible individuals will participate in the plans, the Treasury's estimate of the revenue loss is high and that the actual revenue loss will be lower. It is suggested that many self-employed persons will not be able to take full advantage of the legislation and still keep up their normal expenses. In this connection it Is well to reiterate that the revenue estimate was based on the assumption that the - 8- 252 actual deductions would be only a part of the maximum allowable, and that self-employed persons with more than $20,000 of annual income would use only two-thirds of their maximum allowable deduction. On this assumption, it is nevertheless estimated that self-employed persons with incomes of $20,000 or over would receive about $200 million or about 55 percent of the total tax reduction. The revenue loss could very well be larger than our estimates. The fact that the bill would grant tax deductions for investments in a wide range of assets, including stocks, Government bonds, and specified types of insurance and annuity contracts, coupled with the fact that the bill would not require such investments to be financed out of current earnings, suggests that there might well be close to maximum utilization of the benefits in the higher income brackets. The adoption of H. R. 10 in whatever limited or modified form might well constitute a precedent for widespread tax relief for savings which would further erode the tax base. It should be pointed out, however, that the same argument as to discrimination cannot be made in every case involving employees as is available to the self-employed. Under the private and Government pension plans, while the employee's contributions are not deductible, the contributions by the employer are not currently taxed to the employee. 253 -9 In addition, in the case of social, security and railroad retirement, the benefits when paid are tax free. On the other hand, there are many employees who have no coverage under private or Government pension plans or, while covered, have Inadequate coverage as compared with the benefits proposed under H. R. 10. Furthermore, as previously noted, employees covered by pension / plans frequently have no vested rights in the contributions made on their behalf by the employer and lose such benefits should they leave their employer. Under earlier versions of the bill before us, more widespread coverage was provided. The bill was subsequently limited to the self-employed because of objections from the Treasury based on the revenue impact and because employees at least potentially may benefit from private and public pension plans established by their employers whereas under the tax law self-employed individuals do not have the potentiality of tax benefits available to employees to provide retirement income. However, proponents of the bill have observed that sooner or later the pensionless employee must also be brought under the bill, since those employees who are forced to provide their own retirement are entitled to the same right of tax deferment on the portion of their earnings so used as their more fortunate colleagues who are provided for by their employers under qualified employee pension - 10 - 254 plans. Moreover, it has been suggested that, as the revenue permits, those inadequately covered under qualified employee pension plans should be given an opportunity to supplement such benefits by being able to participate in a limited way under the bill. Thus, in all likelihood, adoption of H. R. 10 will be used as a precedent for more widespread tax relief in this particular area, with pressures to permit the deduction of employee contributions to public and private plans. If the benefits of H. R. 10 are extended to all employees not covered by pension plans, the additional revenue loss under H. R. 10 would amount to more than $1.2 billion. If the benefits are further extended to inadequately covered employees, that is to say, covered employees with the employer's contribution deducted from the allowable limit, the additional revenue loss would amount to about $500 million. The over-all revenue loss would accordingly be in excess of $2 billion, taking Into account the three separate classes of (l) self-employed, (2) pensionless employees and (3) inadequately covered employees. Other revenue estimates based on different approaches or broader coverage were previously submitted to this Committee in our report of February 16, 1959 on this legislation. If tax deductions for the retirement savings of other groups, including employees' contributions under private pension plans and under the social security, - 11 railroad retirement, Federal, State and local civil service retirement programs, were permitted, the revenue loss would amount to over $1.3 billion. Alternatively, if all taxpayers were allowed deductions for retirement savings up to 10 percent of their adjusted gross income or $2,500 a year with the maximum also raised for persons over 50 years of age, as provided in the bill, It is estimated that the revenue loss would be $3 billion a year. As stated at the outset, we will shortly appear before this Committee requesting an extension of certain corporate and excise tax rates. We cannot at this time support a major tax reduction bill.. We recommend that the tax treatment of retirement savings be carefully considered in conjunction with the Ways and Means Committee's announced plans for an extensive Inquiry into the opportunities for constructive reform of the Federal tax system, a project' in which the Treasury Is cooperating. The Committee will investigate the practical possibilities of broadening the tax base sufficiently to permit significant reductions In individual and corporation income tax rates, without sacrificing the revenues needed by the Government. Problems relating to retirement, including pension and profit-sharing plans, are included in this inquiry. _d" (X IMMEDIATE' PLEASE Thursda^|tJune 18, 1959 k-555 Treasury Secretary Robert B. Anderson, acting as the United States Governor for the International Bank for Reconstruction and Development and the International Monetary Fund, today notified the two institutions that he is making arrangements to increase the United States' subscription to both organizations. Secretary Anderson's letter of notification follows authorization o.^ Public Law 86-48, signed into law by President Eisenhower" on Wednesday. By this action the United States is agreeing to increase the United States' subscription to the Monetary Fund by $1,375 million, of which $3^3,750,000 will be in gold. The gold transfer will be made to the Monetary Fund in the next few days through the Federal Reserve Bank of New York. The remainder of the Fund subscription is in non-interest-bearing demand notes. The subscription of the additional shares of stock in the Bank will not involve any cash payment but it will increase by $3A75 million the United State guaranty behind obligations to be issued by the Bank. This increase will facilitate the continued sale of the Bank's securities to private investors in U.S. The membership of the United States in these institutions was authorized by Congress in the Bretton Woods agreements Act of 19^5• Both institutions have been outstandingly successful in establishing an effective and continuing system of international cooperation in the field of monetary and exchange policies and economic development. The increase in their resources will enable these two institutions to continue to operate successfully over the years ahead. TREASURY DEPARTMENT WASHINGTON, D . C IICEDIATE RELEASE Thursday, June 18, 1959 X k-555 Treasury Secretary Robert B. Anderson, acting as the United States Governor for the International Bank for Reconstruction and Development and the International Monetary Fund, today notified the two institutions that he is making arrangements to increase the United States' subscription to both organizations. Secretary Anderson's letter of notification follows authorization of Public Law 86-48, signed into law by President Eisenhower on V.ednesday. By this action the United States is agreeing to increase the United States' subscription to the Monetary Fund by $1,375 million, of which $3^3,750,000 will be in gold. The gold transfer will be made to the Monetary Fund in the next few days through the Federal Reserve Bank of New York. The remainder of the Fund subscription is in non-interest-bearing demand notes The subscription of the additional shares of stock in the Bank will not involve any cash payment but it will increase by $3,175 million the United Sta guaranty behind obligations to be issued by the Bank. This increase will facilitate the continued sale of the Bank's securities to private investors in U.S. The membership of the United States in these institutions was authorized by Congress in the Bretton Woods agreements Act of 19^5 • Both institutions have been outstandingly successful in establishing an effective and continuing system of international cooperation in the field of monetary and exchange policies and economic development. The increase in their resources will enable these two institutions to continue to operate successfully over the veare ahead. mmASt A -2^7" •? ^ ^ A. M. MEH8HFIR8 f _~ w ^ sagag» * a gj WB^ the frmmmury Department anaouaoed last evening tfaat the tendere l%r two seriea ©f freaeury M i l s , one series to be an additional Umm ®f thm bills dated ffareh 24, 1959, and the other mmrimm to be dated June 25, 1959, which were offered on June 18, were op_n* at the Federal Reserve Banlce on June 28. tmt%Hmm were invited for $1,200,000,000, or tkmrm&honU. of 91~iay bills mm for ^00,000,000, or thereabout*, of X$%t**m%y bill*. Hit stalls of the two series are as follows i M i l l OF A O C O T ? ro XM**®*y fmrnmity bills 91«<§ay ?r®a»ury bill® ataturHif tmmmbmr ** 1959 maturing Seyteaiber 21^ l$?jg.f. OGNFBflTXtil BIDS* Approx. S*piv* frim mum High Average 99.166 99.X7X %*tm 3*m$ Approx. Ecjulv. Annual late 9®.m mf 3JkW 98*176 98.188 3.608j£ 3.185* mf thmmpUm t»* Utmmrm totaling $350,000 n perorat of tt* *mm*% of 9h*$my Mill Mil for at mm 1m prim 30 payees* of mm amount of jy$M*)r bill* bi4 for at tlw lew pi«i©e wae accepted fOfAL 9 U R S 8 affgJIO f0& AH* A§0»fED II FIBttt&L HSSSVK SUMUgSSt Oletrieb Boeton lew York lfeil*ttl]*iSA Olevelatii ftUta-onft Atlanta Chle&go St. Louie %%***** City Delias Sen Franeleeo mms fjjyf^iiffi*» $ 25,I*63,OO0 l,5b5.763tO0O 29,21*5,000 k79m*m® 17,1*10,000 30,655,000 188,836,000 20,175,000 21,1108,000 lrft,-48,000 23,058,000 I2,oi8,0ti,ioo 15,163,000 8tt#fc83*000 iMfc&ooo 12,052,000 17,1*10,000 29,it55,000 126,31*1,000 20,175,000 11,1*08,000 3§,§O8,OO0 23,058,000 $1,200,168,000^ • 6,665,000 7,1109,000 21,079,000 3,1*23,000 3,986,000 fl,08?,000 4,3?6,000 39m9m® 9,k00,000 5,017,000 W55,W,O00 £^£2_E!IS!EL # 6,465,000 370,606,000 2,1*09,000 23,O7f,O0O 3,!i23,OO0 3,986,000 it3,687,000 6,376,000 3,5h6,OO0 9,100,000 5,017,000 t5©O,337,00%/ of XmlvL&mm 1253,285,000 noncompetitive tenders aeoepted at the average price of 99.171 of Xnolu&eit $$2937h9Qm neneeaipetitive tenders aeo«pte4 at the average price of 98.181 %\ Co'1-*- TREASURY DEPARTMENT jmw_i^___________a______a_ W A S H I N G T O N , D.C. RELEASE A. M. NEWSPAPERS, .day, June 23, 1959. A-556 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional Issue of the bills dated March 26, 1959, and the other series to be dated June 25, 1959, which were offered on June 18, were openec at the Federal Reserve Banks on June 22. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows: RANGE OF ACCEFTED COMPETITIVE BIDS} Price High Low Average 182-day Treasury bills 91-day Treasury bills maturing September 2k, 1959 99.180 99.166 99.171 maturing December 2l*, 1959 Approx. Equiv. Annual Rate Price 98.206 a/ 98.176 98.188 3.2W 3.299$ 3.281$ Approx. Equiv. Annual Rate 3-51*9$ 3.608$ 3.585$ a/ Excepting two tenders totaling $350,000 5l percent of the amount of 91-day bills bid for at(ti|ie low price was accepted 30 percent of the amount of^o^-day bills bid for at the low price was accepted TOTAL TENDERS APFLTJED FOR AMD ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted j Applied For Accepted : Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City "Dallas San Francisco TOTALS $ 25.1*63,000 1,51*5,783,000 29,21*5,000 1*7,502,000 17,1*10,000 30,655,000 188,836,000 20,175,000 11,1*08,000 l|l*,l68,000 23,058,000 61*,315.000 I 15,1*63,000 812,1*83,000 Hi,21*5,000 1*2,052,000 17,1*10,000 29,1*55,000 126,3^1,000 20,175,000 11,1*08,000 38,808,000 23,058,000 1*9,270,000 &2,01*8,018,000 i $855,1*37,000 ftl,200,168,000b/ : : : : : : j j j j J : t 6,665,000 688,006,000 7,1*09,000 28,079,000 3,1*23,000 3,986,000 71,087,000 6,376,000 3,51*6,000 9,1*00,000 5,017,000 22,1*1*3,000 $ 6,665,000 370,606,000 2,1.09,000 23,079,000 3,1*23,000 3,986,000 1^3,687,000 6,376,000 3,51*6,000 9,100,000 5,017,000 22,1*1*3,000 6500,337,000c/ b/ Includes $253,285,000 noncompetitive tenders accepted at the average price of 99.171 c/ Includes $52,37U,000 noncompetitive tenders accepted at the average price of 98.188 Increase in revenue 1/ resulting from extension of present corporation income and excise tax rates for one year beyond June 30, 1939 (In millions of dollars) Scheduled rate reduction Corporation income tax >* Excise taxes: Alcohol: Distilled spirits Beer • Wines Total alcohol • Tobacco: Cigarettes (small) Manufacturers* excise taxes: Passenger automobiles • Parts and accessories for automobiles... Total manufacturers* excise taxes .... Total excise taxes Total increase in receipts » • 52# to 47# Increase in receipts Fiscal year : Pull I960 : 1961 : year 1,000 1,200 2/ ; Decrease in refunds (I960 only) 2,200 4 160 73 8 241 143 201 4 205 20 315 60 375 45 29. 10 60 $10.50 to $9.00 per gallon $9.00 to $8,00 per barrel Various ^f 157 72 8 237 $4.00 to $3.50 per thousand 10# to 7£ of mfgrs. price 8# to 5# of mfgrs, price _803 _S 1,803 Office of the Secretary of the Treasury, Tax Analysis Staff. 1/ At levels of income estimated for the calendar year 1959 and fiscal year i960 2/ Includes small receipts in succeeding years. 3/ Sparkling wines (champagne) $3.40 to $3.00 per gallon Artificially carbonated wines $2.40 to $2.00 per gallon Still wines: Not more than 14# alcohol • 17 cents to 15 cents per gallon More than 14#, not over 21# alcohol 67 cents to 60 cents per gallon More than 21%. not over 24# alcohol $2.25 to $2.00 per gallon Wine liqueurs or cordials produced domestically containing over 2|# wine, which wine contains over 14# alcohol (in lieu of rectification tax) $1.92 to $1.60 per gallon 3 1 mt. JO. J8. 1,278 130 8 208 3,081 208 June 2, 1959. 16: - 3 At the present time we must keep striving to close the gap between revenues and expenditures and to achieve a surplus. To do otherwise would add to the burden of an already Eeavy debt which encumbers our economy not only by the cost of interest but by substantial interference in the financial markets of private business, States, municipalities, and other political subdivisions competing for national savings. 7^ 3'y\ ) We are indeed appreciative of the thougjhtful and cooperative tj^.'y" consideration which hasYbeen given bji the ILLUILI uh i _ nT hnfh to these problems (-_** H^iM^ G^K^*"fe**^'s X^^-J^l* Att. Of the total of approximately $3.1 billion, $2.0 billion would come in the fiscal year i960 and $1.1 billion in fiscal year 1961. The rates now in effect were established by the Revenue Act of 195t> under which the increases were scheduled to terminate on March 31, 1954. The higher rates have been continued by successive rate extension acts, on a one-year basis in 1954, 1955, 1956, and 1958, and for 15 months in 1957. If H. R. 7523 were not enacted, the present corporate income tax rate of 52 percent would revert on July 1, 1959 to 47 percent through a reduction of the normal rate from 30 percent to 25 percent. Further details as to the particular taxes, the respective rates and the revenue effects for both fiscal years are presented in the accompanying table. The reductions in tax rates that would take place witlout the adoption of H. R. 7523 would go to only a few of the tax sources of the Federal Government. When budgetary conditions make it possible to consider tax reductions, we believe that consideration should be given to the tax system as a whole. The Treasury is of the opinion that a reduction of corporate rates is not justified when reduction iH the rates of individuals cannot properly be made. We also believe that when a suitable opportunity is available for the reduction of excise tax rates, we should reexamine the over-all pattern of rates to determine which should then enjoy priority in reduction* ralheJP-'-fchau*' \iBimm%&g)J£^^ Statement by David A. Lindsay, Assistant to the Secretary, before the Committee on Finance of the United States ^ Senate, on H. R. 7523, 10:00 a.m., Tuesday, June 23, 1959 / ft*^$>Wy Mr. Chairman and Members of the Committee on Finance: /'V ^e I appreciate this opportunity to appear before you in support of H. R. 7523 which was passed by the House of Representatives on June 8, 1959* This legislation would extend for one year the present tax rates on corporation incomes and the excise rates on liquor, cigarettes, automobilesWnd automobile parts and accessories. As you know, the President in his Budget Message to the Congress this year stated that the budget outlook for i960 makes it essential to extend these existing tax rates another year beyond their present expiration date of June 30, 1959The Treasury De-ptttaent on January 19, 1959 sent to the Vice President and tbfe Speaker df the House of Representatives le<££€xIp regarding the recommeipted contijiuation^df these taxe^ afid grafts of the proposed / y /r * ''y ^ / ^ "'" ^y legislation now incorporated in H,/E. 7523^'**' ^^ "-The full jicm "gB«ejmff"TrPrpr>°&nt_f'^^ •ext©ns4o_rspo*ttld If this legislation were not adopted there would be a revenue loss in a full year of operation of about $3.1 billion. $2.2 billion of this vould'Vbe,. in corporation income taxes and $0.9 billion in the following excise taxes: $241 million of various alcohol taxes, $205 million of the tax on cigarettes, and $435 million of the taxes on automobiles and automobile parts and accessories. ^— —• • 36i TREASURY DEPARTMENT Washington STATEMENT BY DAVID A. LINDSAY, ASSISTANT TO THE SECRETARY OP THE TREASURY, BEFORE THE COMMITTEE ON FINANCE OF THE UNITED STATES SENATE, ON H. R. 7523. 10:00 A.M., TUESDAY, JUNE 23, 1959 Mr. Chairman and Members of the Committee on Finance: I appreciate this opportunity to appear before you in support of H. R. 7523 which was passed by the House of Representatives on June 8, 1959. This legislation would extend for one year the present tax rates on corporation incomes and the excise rates on liquor, cigarettes, automobiles and automobile parts and accessories. As you know, the President in his Budget Message to the Congress this year stated that the budget outlook for i960 makes it essential to extend these existing tax rates another year beyond their present expiration date of June 30, 1959. If this legislation were not adopted there would be a revenue loss in a full year of operation of about $3.1 billion. $2.2 billion of this would be in corporation income taxes and $0.9 billion in the following excise taxes: $241 million of various alcohol taxes, $205 million of the tax on cigarettes, and $435 million of the taxes on automobiles and automobile parts and accessories. Of the total of approximately $3.1 billion, $2.0 billion would come in the fiscal year i960 and $1.1 billion in fiscal year 1961. The rates now in effect were established by the Revenue Act of 1951, under which the increases were scheduled to terminate on March 31. 1954. The higher rates have been continued by successive rate extension acts, on a one-year basis In 1954, 1955, 1956, and 1958, and for 15 months in 1957. If H. R. 7523 were not enacted, the present corporate Income tax rate of 52 percent would revert on July 1, 1959 to 47 percent through a reduction of the normal rate from 30 percent to 25 percent. Further details as to the particular taxes, the respective rates, and the revenue effects for both fiscal years are presented in the accompanying table. A-557 - 2 The reductions in tax rates that would take place without the adoption of H. R. 7523 would go to only a few of the tax sources of the Federal Government. When budgetary conditions make it possible to consider tax reductions, we believe that consideration should be given to the tax system as a whole. The Treasury is of the opinion that a reduction of corporate rates js not justified when reduction in the rates of individuals cannot properly be made. We also believe that when a suitable opportunity is available for the reduction of excise tax rates, we should reexamine the over-all pattern of rates to determine which should then enjoy priority in reduction. At the present time we must keep striving to close the gap between revenues and expenditures and to achieve a surplus. To do otherwise would add to the burden of an already heavy debt which encumbers our economy not only by the cost of interest but by substantial interference in the financial markets of private business, States, municipalities, and other political subdivisions competing for national savings. We are indeed appreciative of the thoughtful and cooperative consideration which has consistently been given to these problems by your Committee. oOo Increase in revenue 1/ resulting from extension of present corporation income and excise tax rates for one year beyond June 30, 1959 (In Killions of dollars) Scheduled rate reduction Corporation income tax Excise taxes: Alcohol: Distilled spirits Beer , Wines Total alcohol Tobacco: Cigarettes (small) Kanufacturers* excise taxes: Passenger automobiles * Parts and accessories for automobiles... Total manufacturers* excise taxes .... Total excise taxes 52^ to 47# Increase in receipts Fiscal year Pull i960 1961 year 1,000 $10.50 to $9,00 per gallon $9.00 to $8,00 per barrel Various J/ 1,200 2/ Decrease in refunds (I960 only) 2,200 157 72 8 3 1 160 73 8 130 8 5 237 4 241 143 $4.00 to $3.50 per thousand 201 4 205 20 10# to 7Jo of mfgrs. price S% to 5fl» of mfgrs, price 315 60 375 45 365 803 70 78 435 881 1,803 1.278 3,081 Total increase in receipts Office of the Secretary of the Treasury, Tax Analysis Staff. 1/ At levels of income estimated for the calendar year 1959 and 2/ Includes small receipts in succeeding years. 3/ Sparkling wines (champagne) $3.40 to $3.00 Artificially carbonated wines • $2.40 to $2.00 Still wines: Hot more than l4g alcohol « 17 cents to 15 Kore than 14£, not over 21g alcohol 67 cents to 60 Kore than 2l£, not over 24£ alcohol $2,25 to $2.00 Wine liqueurs or cordials produced domestically containing over 2 ^ wine, which wine contains over 14£ alcohol * (in lieu of rectification tax) • $1.92 to $1.60 208 June 2, 1959* fiscal year i960 per gallon per gallon cents per gallon cents per gallon per gallon per gallon - 3} ^___1?_____?__™ 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 subjec 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 interes 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou 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 cluded 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, whet on original issue or on subsequent purchase, and the amount actually received eit upon sale or redemption at maturity during the taxable year for which the return 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 - decimals, e. g., 99.925. Fractions may not be used. It is urged that tenderr be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions •.•rill not be permitted to submit tenders ex- cept for their cwn account. Tenders will be received without deposit fro_. incorp rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied 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 submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende In whole or in part, and his action in any such respect shall "be final. Subject these reservations, noncompetitive tenders for $ 200,000 or less for the addition S_B5 bills dated April 2, 1959 , ( 91 days remaining until maturity date on pjj^ £$£$ October 1, 1959 ) and noncompetitive tenders for $100,000 or less for the _$_&$£ pQQfy. 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 2, 1959 , in cash or §__§5 other immediately available funds or in a like face amount of Treasury bills maturing July 2» 1959 • Cash and exchange tenders will receive equal treatment. fc__d Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition cf the tills, does not have any exemption, as such, and less __CM_XXQSXX im&3mXfl§m&m TREASURY DEPARTrlEI.T Washington RELEASE A. M. NEWSPAPERS, Thursday, June 25, 1959 __$- . The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts, f cash and in exchange for Treasury bills maturing July 2. 1959 t i31 tne amount of $1,600,515,000 , as follows: 91-day bills (to maturity date) to be issued July 2, 1959 , in the amount of $ 1,100,000,000 , or thereabouts, represent- _£$$_ ing an additional amount of bills dated April 2, 1959 , ip_p and to mature October 1, 1959 , originally issued in the amount of $ 400,057,000 , the additional and original bills to be freely interchangeable. 182-day bills, for $ 500,000,000 , or thereabouts, to be dated July 2, 1959 , and to mature December 51, 1959 £t_e$x _p5Ep The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/st3D5Kt_xaxtime, Monday, June 29, 1959 . 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 t price offered must be expressed on the basis of 100, with not more than three is1 TREASURY DEPARTMENT '•"»"WIji—I'UHW—WW II l.'I'JI! M"JW-MWJIUHH WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, June 25. 1959. A-558 The Treasury Department, by this public notice, invites tenders £ o r J ^ ° ^ r ^ o f Treasu**y hills to the aggregate amount of $1,000,000,000, or thereabouts, for cash and in exchange for « Treasury bills maturing July 2, 1959, in the amount of $1,600,313,000, as follows: 91-day bills (to maturity date) to be issued July 2, 1959, in the amount of $1,100,000,000, or thereabouts, representing an additional amount of bills dated April 2, 1959, and to mature October 1,1959, originally issued in the amount of $400,057,000, the additional and original bills to be freely interchangeable. 182 -day bills, for $500,000,000, or thereabouts, to be dated July 2, 1959, and to mature December 31, 1959. The bills of both series will be issued on a discount basis unde competitive and noncompetitive bidding as hereinafter provided, and at maturity their 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 Daylight Saving time, Monday, June 29, 1959. . 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 hot 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 o£ Treasury bill3 applied for, unless the tenders are or accompanied trust company. by an express guaranty of payment by an incorporated bank - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment 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 for the additional bills dated April 2, 1959, (91 days remaining until maturity date on October 1, 1959) and noncompetitive tenders for $100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 2, 1959, In cash or other immediately available funds or In a like face amount of Treasury bills maturing July 2, 1959. 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*1-. 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 0O0 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 Federal of theirReserve issue. Bank Copies or Branch. of the circular may be obtained from any June Z%, lt§9 ©ear Bill, It is with regret that I receive and accept your resignation, to haeome effective at the close of butine®:© on Augttit Si. You have hud a long and dietinguished career serving your country and have made many valuable contirihatioiia te our government and our national well***. Perhape the richest reward that you could tali© with you in the knowledge of a job well d©n# and the gratitude not only of your aeaoeiates but that of a grateful country. It haa been a personal pleasure to have worked with you during that* past two yeare, and I would like to mmprmmm my own personal appreciation for all erf the work which you have done to lighten m y own taste® and thoee of your associates. W e hope that you will always, feel that you are a part of our Treasury family and that when your new duties permit, you will return to vi»lt with at, I wish for you and your family every possible success and happiness in the years ahead. I knew that you will bring to your new associate® a high mnmm of dedication and an outstanding competence. We shall undoubtedly he taking advantage of your offer of service in the' future and will he looking, for a ta*k that it worthy of your talents. With every good wish, I am Sincerely yours, (Signed) Robert B. Anderson M r . William W . Par tent Administrative Assistant Secretary The Treasury department Washington 25, D. C. Swam 22, 1959 my dear Mr. Seeretaryj Following our infomal conversations* I as herewith submitting ay resignation as Adadeistrstive Assistant Secretary ef the Treasury to heeoae effective at the close of business on August 31, X*$9* A* yea knew, I as leaving the Govenaent to aeeept a position in Santa Monica, California, as Ties President ef the Systesr Development Corporation, m private non-profit organization established for scientific, educational and charitable purposes. Hy decision te resign has been m difficult one te make because of the richly rewarding experiences and association* of Covernsent Service, and the unusual opportunities for participation In the ss&ny Treasury functions and services so vital te the welfare and security ef our Nation. It has indeed been a privilege te serve the Treasury Departsent these past nine years as the first Administrative Assistant Secretary ef the Treasury, a career post which was established te afford adsinittrs%l*e continuity in internal departmental affairs. The contributions which I asy have Bade te the management of the affairs of the Treasury have been due In large measure te the dedicate and able leadership ef the Secretaries ef the Treasury under when I have served. X shall always veins my associations with the Treasury people both in Washington and in the field service, and shall continue te hold in highest esteee their devotion te public service. It has meant mich to me to have been personally associated with yea these past two years la the Treasury, sad if X can be of service in the future either to yon or to the Treasury Department, I shall consider it a privilege. Sineerely, Honorable Robert B. Anderson Secretary of the Treasury WWParsons;jc RELEASE A. M. NEWSPAPERS Thursday, June 25, 1959 A-&7 Secretary of the Treasury Robert B # Anderson today announced his acceptance "with regret" of the resignation of William ¥, Parsons as Administrative Assistant Secretary of the Treasury, Mr. Parsons, whose resignation becomes effective August 31, has been named Vice President of the System; Development Corporation, Santa Monica, California, Secretary AndersoiCin citing Mr, Parsons1 "long and distinguished career,11 said "I know/you will bring to your new associates a high sense w of dedication and an outstanding competence," Mr. Parsons has been serving since August, 195>0 as the Treasury's first Administrative Assistant Secretary, a career post established to afford administrative continuity in internal departmental affairs. Mr. Parsons entered Federal Government service in May of 194L with the Bureau of the Budget. In December, 1944 he transferred to the Treasury Department. He had previously worked for New York State and as a management consultant in Chicago, In his professional experience and education, Mr. Parsons has specialized in the field of public administration. A native of Los Angeles, he was graduated from the University of Southern California in 1935, receiving a B. S. in Business Administration^ and was later awarded a fellowship at Syracuse University. He received an M.S. in Public Administration from Syracuse University in 1938. He was awarded an LL.D. from Southeastern University in 195-7. In 195k Mr. Parsons served as National President of the American Society for Public Administration and in 1949 was President of the Society1 s Washington Chapter. He has been active in civic and welfare activities in the National Capital area where he is currently serving as a member of the Board of Directors and Executive Committee of United Givers Fund of the National Capital area, and 1st Vice President of the Health and Welfare Council of the National Capital Area. TREASURY DEPARTMENT •««'^ i r f f i _ ^ _ g a f f l g y a i ^ r w m M ^ IIIMI B l l l l uMljUMMBMBBMBIL WASHINGTON, D.C. RELEASE A, M. NEWSPAPERS Thursday. June 25, 19^9 A-559 Secretary of the Treasury Robert B. Anderson today announced his acceptance "with regret" of the resignation of William W. Parsons as Administrative Assistant Secretary of the Treasury. Mr. Parsons, whose resignation becomes effective August 31, has been named Vice President of the System Development Corporation, Santa Monica, California. Secretary Anderson, in citing Mr. Parsons' "long and distinguished career," said "I know that you will bring to your new associates a high sense of dedication and an outstanding competence." Mr. Parsons has been serving since August, 1950 as the Treasury's first Administrative Assistant Secretary, a career post established to afford administrative continuity In internal departmental affairs. Mr. Parsons entered Federal Government service in May of 1941 with the Bureau of the Budget. In December, 1944 he transferred to the Treasury Department. He had previously worked for New York State and as a management consultant in Chicago. In his professional experience and education, Mr. Parsons has specialized in the field of public administration. A native of Los Angeles, he was graduated from the University of Southern California in 1935. receiving a B.S. in Business Administration, and was later awarded a fellowship at Syracuse University. He received an M.S. in Public Administration from Syracuse University in 1938. He was awarded an LL.D. from Southeastern University In 1957. In 1954 Mr. Parsons served as National President of the American Society for Public Administration and in 1949 was President of the Society's Washington Chapter. He has been active in civic and welfare activities in the National Capital area where he is currently serving as a member of the Board of Directors and Executive Committee of United Givers Fund of the National Capital area, and 1st Vice President of the Health and Welfare Council of the National Capital area. Secretary Anderson's and Mr. Parsons' letters are attached. 0O0 THE SECRETARY OF THE TREASURY WASHINGTON June 23, 1959 Dear Bill, It is with regret that I receive and accept your resignation to become effective at the close of business on August 31. You have had a long and distinguished career serving your country and have made many valuable contributions to our government and our national welfare. Perhaps the richest reward that you could take with you is the knowledge of a job well done and the gratitude not only of your associates but that of a grateful country. It has been a personal pleasure to have worked with you during these past two years, and I would like to express m y own personal appreciation for all of the work which you have done to lighten m y own tasks and those of your associates. W e hope that you will always feel that you are a part of our Treasury family and that when your new duties permit, you will return to visit with us. I wish for you and your family every possible success and happiness in the years ahead. I know that you will bring to your new associates a high sense of dedication and an outstanding competence. We shall undoubtedly be taking advantage of your offer of service in the future and will be looking for a task that is worthy of your talents. With every good wish, I am Sincerely yours, fsf Robert B. Anderson Mr. William W. Parsons Administrative Assistant Secretary The Treasury Department Washington 25, D. C. TREASURY DEPARTMENT ADMINISTRATIVE ASSISTANT SECRETARY WASHINGTON June 22, 1959 % dear Mr. Secretary? Following our informal conversations, I am herewith submitting my resignation as Administrative Assistant Secretary of the Treasury to become effective at the close of business on August 31, 1959* As you know, I am leaving the Government to accept a position in Santa Monica, California, as Vice President of the System Development Corporation, a private non-profit organization established for scientific, educational and charitable purposes. My decision to resign has been a difficult one to make because of the richly rewarding experiences and associations of Government Service, and the unusual opportunities for participation in the many Treasury functions and services so vital to the welfare and security of our Nation. It has indeed been a privilege to serve the Treasury Department these past nine years as the first Administrative Assistant Secretary of the Treasury, a career post which was established to afford administrative continuity in internal departmental affairs* The contributions which I may have made to the management of the affairs of the Treasury have been due in large measure to the dedicated and able leadership of the Secretaries of the Treasury under whom I have served. I shall always value my associations with the Treasury people both in Washington and in the field service, and shall continue to hold in highest esteem their devotion to public service. It has meant much to me to have been personally associated with you these past two years in the Treasury, and if I can be of service in the future either to you or to the Treasury Department, I shall consider it a privilege• Sincerely, fsf William W. Parsons Honorable Robert B. Anderson Secretary of the Treasury X> O Comparison of principal items of assets and liabilities of active national banks - Continued^ :? (In thousands of dollars) ^ * jlncrease or decrease jlncrease or decrease Mar. 1 2 , 4 Dec, 3 1 . sslnee Dec- 31. 1958 gsinee War- 4. 1 9 5 8 — 8 1958 1958 1959 Amount 2 Percent s Amount t Percent LIABILITIES Deposits of individuals, partnerships, and corporations: Demand , , 59,483,011 Time 33,229,040 Deposits of U. S. Government.... 1,622,690 Postal savings deposits.,,.,.•••••,•• 9.559 Deposits of States and political subdivisions ................. , 8,168,870 Dpposits of banks..,.,,....,,,,.,..., 8,585*962 Other deposits (certified and cashiers 1 checks, etc*).,..,*••••••• 1.618.181 Total deposits.................. 112,717.313 Bills payable, rediscounts, and other liabilities for borrowed money, 917.898 Other liabilities..................... 2.085.Ill Total liabilities, excluding capital accounts,,.............«H5.720,322 CAPITAL ACCOUNTS Capital stock: Common,«•.«*•«••«.««.««»,«...«**.•»• 3.051.015 Preferred,».•«««*.,,«..,...«..«•,••. j.^t^rc Total,,.... ? t 0$4 t 4g7 Surplus •*••....••••• 4*821,012 Undivided profits... ,,.,, 1,712,065 Reserves, ............................ 272,623 Total surplus, profits and reserves..............*»».*..... 6.805.7QQ Total capital accounts..,.,,.,,,, 9.860,157 Total liabilities and capital accounts,•••,•••«.•••«••.••••••.125.580.479 BATIOS: Percent U.3.Gov*t securities to total assets 27,70 Loans A discounts to total assets 42,38 Capital accounts to total deposits 8,75 61,785,222 32,614,707 2,565.032 9.905 55,043,7^2 29,882,234 2,163,907 10,786 •2,302,211 614,333 •"•942,342 WJ46 **3*T3 1,88 «36.7** «3,49 4,439.269 3,346,806 -541,217 *»1,227 8,06 11.20 -25.01 -11.38 8,426,763 9,809,186 8,018,405 8,688,328 -257.893 «*_, 223, 224 **3*06 *12»47 150,465 «102,366 1.88 1.875.313 117,086,128 1.418.851 105,226,253 -257.132 «4.368,815 -13.71 *3.73 129,330 7.491.060 14,05 7.12 43.035 610,019 874,863, 2032,91 307.879 1.999.002 2.163.042 86.109 4.31 -77.931 *a.!8 119,128,165 107.999.314 «*3.407,843 -.2,86 7.721§008 2.840,160 2 y ?51 t 279 4,718,459 1,711.435 287*628 2 t 842 t 903 4,448,129 1,694,533 257.257 103,228 ^0 !Q1tl78 102,553 630 •agtOOg 6,717,522 9.668,801 6,399,919, 9.242,822 88,178 191.356 2,947.787 J_J_2__ 2_?ifl 3^50 210,855 J_J_0. 2,17 ,04 __5*22_ 211.554 372,883 17.532 l?t?66 1*_1 1.98 i_____ZSl 62SI 617*335 128.796,966 117.242.136 -^,,216.467 ____*_50 8,338,34? Percent Percent 27*81 27.12 HOTEj Minus sign denotes decrease. 40.99 42.38 8.26 8.78 LO CD O r— Statement showing comparison of principal items of assets and liabilities of active national banks as of March 12, 1959. December 31. 1958 and March 4, 1958 (In thousands of dollars) : Number of banks , Mar. 12, * 1959 ; Dee. 31, 1958 Mar, 4, 1958 4,569 4,585 4,622 Increase or decrease : Increase or decrease isince Dec. 31. 1958 : since Mar. 4. 1958 Percent : Amount Percent: Amount •53 -16 ASSETS Commercial and industrial loans,.,.,... 22,305,884 22,402,978 Loans on real estate. 14,052,350 13,713.325 All other loans, including overdrafts.. 17.942.232 17.735.911 Total gross loans 54,300,466 53.852,214 Less valuation reserves, 1.083.326 1.055.990 Net loans.. , 53,217,140 52,796,224 U, S, Government securities: Direct obligations , 34,787.430 35,821,327 Obligations fully guaranteed......... 3.045 3.433 Total U. S. securities............ 34,790.475 35.824,760 Obligations of States and political subdivisions.... , 9.005,281 8,845.522 Other bonds, notes and debentures.,,.., 1,769,676 1,836,523 Corporate stocks, including stocks of Federal Reserve banks,,.,.. 288.263 281,419 Total securities,, 45,853*695 46.788,224 Total loans and securities 99.070.835 99.584,448 Currency and coin 1,554,486 1,675,827 Reserve with Federal Reserve banks,.,., 11,275,663 U , 139j573 Balances with other banks,.,........... 11,368.670 14,049,420 Total cash, balances with other banks, including reserve balances and cash items in process of collection • •.,••••,. 24.198.819 26.864,820 Other assets 2.310.825 2,347.698 Total assets............ 125.580,479 128,796,966 -*.43 2.47 1.16 .83 2.59 .80 1,231,809 1.535.149 866.140 3.633.098 104.815 3.528,283 31.795.874-1,033.897 -2,89 2.393 -388 -11,30 31.798.26? -1,034.285 -2.89 2,991,556 65L 2.992,208 9.41 27#25 9.41 1.81 -3,64 1,378,840 -158,142 18,08 -8.20 271.708 6,844 2_43 41,624,234 -934.529 ~ZJM 91.313.091 -513.613 -.52 1,377.38? -121,341 -7.24 11,336,198 136,090 1.22 10.919.891 -2.680.750 ^_l_t_08 16.55$ 4,229,461 7*757.744 177.099 -60.535 448.779 6,0? 10.16 8.50 12.86 -.53 4_11 565.343 1^.256 8,338.343 2_39 ,66 7.11 21,074,075 12,517,201 17.076,092 50,667,368 978.511 49,688,857 7.626,441 1,92?,818 -97.094 339.025 206.321 448,252 27.336 420,916 159.759 -66,84? 23.633.476 -2,666,001 2.295.569 -36.873 117.242.136 -3.216,487 -9.92 -1.57 -2.50 5.85 12,26 5#07 7.17 io»7i 7.10 m <_o CD - 2 - and other securities of $1,500,000,000 decreased $300,000,000. 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 $11,200,000,000 increased about 3,7 percent since December. The percentage of net loans and discounts (after deduction of valuation reserves of $1,083,326,000) to total assets on March 12, 1959 was 42.38 in comparison with 40.99 in December and 42.38 in March 1958. Total investments of the banks in bonds, stocks, and other securities aggregated $45,800,000,000, a decrease of $900,000,000 since December. Included in the investments were obligations of the United States Government of $34,800,000,000 ($3,045,000 of which were guaranteed obligations). These investments, representing 27.70 percent of total assets, were decreased by $1,000,000,000 during the period. Other bonds, stocks, and other securities of $11,100,000,000. including $9,000,000,000 of obligations of States and other political subdivisions, showed an increase of $100,000,000 since December, Cash of $1,554,000,000, reserves with Federal Reserve banks of $11,276,000,000, and balances with other banks (including cash items in process of collection) of $11,369,000,000, a total of $24,199,000,000, showed a decrease of $2,700,000,000. Bills payable and other liabilities for borrowed money of $918,000,000 showed an increase of $875,000,000 since December. Total capital funds of the banks on March 12 of $9,860,000,000, equal to 8.75 percent of total deposits, were $191,000,000 more than in December when they were 8.26 percent of total deposits. Included in the capital funds were capital stock of $3,054,000,000, of which $3,442,000 was preferred stock; surplus of $4,821,000,000; undivided profits of $1,712,000,000, and capital reserves of $273,000,000. LO CD CD TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Monday, June 29, 195$ A "560 The total assets reported by the 4,569 active national banks in the United States and possessions on March 12, 1959 amounted to nearly $125,600,000,000, it was announced today by Controller of the Currency Ray M. Gidney. The total assets showed a decrease of $3,216,000,000 below the amount reported by the 4,585 active national banks on December 31, 1958, the date of the previous call, and an increase of $8,338,000,000 over the amount reported by the 4,622 banks on March 4, 1958. The deposits of the banks on March 12 were $112,700,000,000, a decrease of $4,400,000,000 since December, Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $59,500,000,000, a decrease of $2,300,000,000, and time deposits of individuals, partnerships, and corporations of $33,200,000,000, an increase of $614,000,000, Deposits of the United States Government of $1,600,000,000 decreased $942,000,000 in the period; deposits of States and political subdivisions of nearly $8,200,000,000 decreased $258,000,000, and deposits of banks of $8,600,000,000 showed a decrease of $1,223,000,000. Postal savings deposits were $9,559,000 and certified and cashie checks, etc., were $1,600,000,000. Gross loans and discounts on March 12, 1959 of $54,300,000,000 showed an increase of $448,000,000 since December. Commercial and industrial loans of $22,300,000,000 decreased $100,000,000, while loans on real estate of $14,000,00 increased $339,000,000. Retail automobile installment loans of $3,900,000,000 showed an increase of $102,000,000. Other types of retail installment loans of $1,380,000,000 showed an increase of $12,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bond TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Monday, June 29, 1959 A-_r_0 The total assets reported by the 4,569 active national banks in the United States and possessions on March 12, 1959 amounted to nearly $125,600,000,000, it was announced today by Comptroller of the Currency Ray M. Gidney. The total assets showed a decrease of $3,216,000,000 below the amount reported by the 4,585 active national banks on December 31, 1958, the date of the previous call, and an increase of $8,338,000,000 over the amount reported by the 4,622 banks on March 4, 1958. The deposits of the banks on March 12 were $112,700,000,000, a decrease of $4,400,000,000 since December. Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $59,500,000,000, a decrease of $2,300,000,000, and time deposits of individuals, partnerships, and corporations of $33,200,000,000, an increase of $614,000,000. Deposits of the United States Government of $1,600,000,000 decreased $942,000,000 in the period; deposits of States and political subdivisions of nearly $8,200,000,000 decreased $258,000,000, and deposits of banks of $8,600,000,000 showed a decrease of $1,223,000,000. Postal savings deposits were $9,559,000 and certified and cashier checks, etc., were $1,600,000,000. Gross loans and discounts on March 12, 1959 of $54,300,000,000 showed an increase of $448,000,000 since December, Commercial and industrial loans of $22,300,000,000 decreased $100,000,000, while loans' on real estate of $14,000,0 increased $339,000,000. Retail automobile installment loans of $3,900,000,000 showed an increase of $102,000,000. Other types of retail installment loans of $1,380,000,000 showed an increase of $12,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bonds W TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Monday, June 29, 19$9 k ~560 The total assets reported by the 4,569 active national banks in the United States and possessions on March 12, 1959 amounted to nearly $125,600,000,000, it was announced today by Comptroller of the Currency Ray M. Gidney. The total assets showed a decrease of $3,216,000,000 below the amount reported by the 4,585 active national banks on December 31. 1958, the date of the previous call, and an increase of $8,338,000,000 over the amount reported by the 4,622 banks on March 4, 1958. The deposits of the banks on March 12 were $112,700,000,000, a decrease of $4,400,000,000 since December. Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $59,500,000,000, a decrease of $2,300,000,000, and time deposits of individuals, partnerships, and corporations of $33,200,000,000, an increase of $614,000,000. Deposits of the United States Government of $1,600,000,000 decreased $942,000,000 in the period; deposits of States and political subdivisions of nearly $8,200,000,000 decreased $258,000,000, and deposits of banks of $8,600,000,000 showed a decrease of $1,223,000,000. Postal savings deposits were $9,559,000 and certified and cashie checks, etc., were $1,600,000,000. Gross loans and discounts on March 12, 1959 of $54,300,000,000 showed an increase of $448,000,000 since December. Commercial and industrial loans of $22,300,000,000 decreased $100,000,000, while loans on real estate of $14,000,00 increased $339,000,000. Retail automobile installment loans of $3,900,000,000 showed an increase of $102,000,000. Other types of retail installment loans of $1,380,000,000 showed an increase of $12,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bond TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Monday, June 29, 1959 A-560 The total assets reported by the 4,569 active national banks in the United States and possessions on March 12, 1959 amounted to nearly $125,600,000,000, it was announced today by Comptroller of the Currency Ray M. Gidney. The total assets showed a decrease of $3,216,000,000 below the amount reported by the 4,585 active national banks on December 31, 1958, the date of the previous call, and an increase of $8,338,000,000 over the amount reported by the 4,622 banks on March 4, 1958. The deposits of the banks on March 12 were $112,700,000,000, a decrease of * $4,400,000,000 since December. Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $59,500,000,000, a decrease of $2,300,000,000, and time deposits of individuals, partnerships, and corporations of $33,200,000,000, an increase of $614,000,000. Deposits of the United States Government of $1,600,000,000 decreased $942,000,000 in the period; deposits of States and political subdivisions of nearly $8,200,000,000 decreased $258,000,000, and deposits of banks of $8,600,000,000 showed a decrease of $1,223,000,000. Postal savings deposits were $9,559,000 and certified and cashie checks, etc., were $1,600,000,000, Gross loans and discounts on March 12, 1959 of $54,300,000,000 showed an increase of $448,000,000 since December. Commercial and industrial loans of $22,300,000,000 decreased $100,000,000, while loans' on real estate of $14,000,0 increased $339,000,000. Retail automobile installment loans of $3,900,000,000 showed an increase of $102,000,000. Other types of retail installment loans of $1,380,000,000 showed an increase of $12,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bond - 2 - and other securities of $1,500,000,000 decreased $300,000,000, 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 $11,200,000,000 increased about 3.7 percent since December. The percentage of net loans and discounts (after deduction of valuation reserves of $1^083.326,000) to total assets on March 12, 1959 was 42.38 in comparison with 40.99 in December and 42.38 in March 1958. Total investments of the banks in bonds, stocks, and other securities aggregated $45,800,000,000, a decrease of $900,000,000 since December. Included in the investments were obligations of the United States Government of $34,800,000,000 ($3,045,000 of which were guaranteed obligations). These investments, representing » 27.70 percent of total assets, were decreased by $1,000,000,000 during the period. Other bonds, stocks, and other securities of $11,100,000,000, including $9,000,000,000 of obligations of States and other political subdivisions, showed an increase of $100,000,000 since December, Cash of $1,554,000,000, reserves with Federal Reserve banks of $11,276,000,000, and balances with other banks (including cash items in process of collection) of $11,369,000,000, a total of $24,199,000,000, showed a decrease of $2,700,000,000, Bills payable and other liabilities for borrowed money of $918,000,000 showed an increase of $875,000,000 since December. Total capital funds of the banks on March 12 of $9,860,000,000, equal to 8.75 percent of total deposits, were $191,000,000 more than in December when they were 8,26 percent of total deposits. Included in the capital funds were capital stock of $3,054,000,000, of which $3,442,000 was preferred stock; surplus of $4,821,000,000; undivided profits of $1,712,000,000, and capital reserves of $273,000,000. Statement showing comparison of principal items of assets and liabilities of active national banks as of March 12, 1959, December 31, 1958 and March 4, 1958 Q < (In thousands of dollars) — Mar. 12, 1959 [umber of banks. ............... 4,569 Dec. 31. 1958 4,585 ASSETS oomercial and industrial loans,....,,. 22,305*884 22,402,978 osns on real estate................... 14.052,350 13,713,325 1 1 other loans, including overdrafts.. 17.942.232 _ l?_73_j_m. Total gross loans................. 54,300,466 53,852,214 Less valuation reserves.... .Jlsg^j^^^^^ Net loans...................... 53,21?sl40 52,796,224 . S. Government securities: Direct obligations 34,?8?,430 35,821,32? Obligations fully guaranteed......... 3.045 3.433 Total U. S. securities............ . J i t ^ m ^ - ^ ^ Obligations of States and political * subdivisions.......... 9,005,281 8,845.522 fther bonds, notes and.debentures...... 1,769,676 1,836,523 Joroorate stocks, including stocks of F-d-ral Reserve banks 288.263 281,419 Total securities. 45,853,695 46,788,224 Total loans «_i securities -99.070.835 99,584,448 lurrency *nd coin... 1,554,436 1,675.827 ^sot-ro vitv» Scleral Reserve banks..,., H,2?5,663 11,139.573 Jal--ce3 with other banks 11.368.670 14,049.420 Total cash, balances with other banks, including reserve balances and cash items in process of collection. 24.198.819 26.864,820 ythor assets 2.310.825 2,347.698 Total assets 125,580.479 128.796.966 M „ h 19^8 * ^Increase or decrease : Increase or decrease :since Dec, 3 1 , 1958 : since M a r , 4, 1 9 5 8 . , % Amount Percent: Amount Percent 4,622 21,074,075 12,517,201 3Z*£_-Ud_22_ 50.667.368 49s688,857 -16 __ -97,094 -,43 339,025 2,4? g&gil--.. ,-J-_3->— 448,252 .83 __Ztl_6____2iJ52_-. 420,916 .80 31,795,874-1,033.897 -2.89 _2j_222L -388 J1,?0 7,626,441 1,927,818 159,759 -66,847 1.81 -3.64 271,708 _6_844 2*42 41,624.234 -934,529 -2-&Q 91,313,091 -513,613 -.52 1.377.387 -121,341 -7.24 11,336,198 136,090 1.22 10,919,891 -2 f 680,?50 -^9.08 __>3_ J»23J.8p9 *•£35,149 866*140. 3.633.098 _^_k3__L 3.528,283 2,991.556 _. ________ 1,378,840 -158,142 _-!-52L 4^_i__L 7j752_J^L 177.099 -60,535 44_L__Z_L 5.S5 12.26 7.17 10.71 7.10 9.41 _2Z_i___9,41 18.08 -8.20 _j£«0_L 10.16 8.50 12.86 -.53 4.11 2„39 .66 23,633,476 -2,666,001 2,295,569 -36,873 117.242,136 -3.216.487 =_____£__ =_*__. -2,50 ________0. 2_L_2_6_ 8,338,343 _Z_3_L Comparison of principal items of assets and liabilities of active national banks - Continued (In thousands of dollars) Mar. 12, 1959 LIABILITIES sposits of individuals, partnerships, and corporations: Demand sposits of U. S, Government..««.,«•• >stal s avings deposits, jposits of States and political ;ut_o._visions...«4........«*..«.««.,, ;posits of banks«,.»-..««««,•,«,«.,,. *har deposits (certified and cashiers' checks,, etc.).,,....,,,.., 59,483,011 33,229,040 1,622,690 9.559 8,168,870 8,585,962 1_618.181 112,717,313 paysble,- rediscounts, and yther liabilities for borrowed money, Mar. 4 1958 61,785,222 32,614,707 2,565.032 9.905 8,426,763 9.809,186 .Increase or decrease ;Increase or decrease :since D e c 31. 1958 :since Ear. 4. 1958 s 55,043,742 29,882,234 2.163.907 10,786 8,013,405 8,688,328 1.3S7.S313 117,086,128 i^is,ea 105,226,253 43.035 1,999.002 610,019 2,163,042 Amount s Percent s Amount ; Percent . -2,302,211 614,333 -942,342 -346 -3.73 1.88 -36.74 -3J+9 4,439,269 3,346,806 -541,217 -1,227 8,06 11.20 -25.01 -11.38 -257.893 -1,223,224 -3.-06 -12,47 150,^65 -102,366 1.88 -1.18 -257,132 -4,368,815 -13,71, -3.73 199.330 7,491,060 874,863, 2032,91 ,,66.109 4a31 307,879 -77,931 14. 05. 7.12 LIIS *Li&r _._ 3 D_jL_t_.es»««.«».«.«.«...««,.,, 917,898 2.085.311 Total liabilities, excluding capital accounts,,,,,....,,.,,.,115,?20,322 119.128,165 107,999,314 CAPITiLL ACCOUNTS ipital stock: Coicrion ..t......... .... «•*,... •»,«•«.« 3f 051. 015 2,947,78? 2,840,160 3.492 2,743 Total, 3.054,457 2.951.279 2,842.903 4*821,012 -t _p—•—.0 , . • . « . . « . . . « . « . « , , . • * « « , . , . , . , . 4,718,459 4,^48,129 o_-Video, proxies...«•«•....,,«.,,,,,,« 1,712,065 1,711,435 1,694,533 5er\rest.•••••««.••«..••«,«•••.••••••. .-,272,623 267.628 257,25? Total surplus, profits and reserves ,. 6,805*700 6,717,522 6,399,919 9,668,801 9,242,822 'otal capital accounts..,,,...... 9.860,157 Total liabilities and capital accounts,,..,...... ..125.580,479 128,796,966 117.242.136 TICS: . Percent Percent Percent .S.C-cv't securities to total assets 27,?0 27,81 2?,12 cans & discounts to total assets 42,38 40.99 42.38 apital accounts to total deposits 8.75 8.26 8.78 50.47 -3,60 ?•!_ -3*407,843 -2.86 7.721.008 103,228 -_?0 3a50 __i_i_i _-Q3_OZ§_ JLL_0_ 102,553 630 -15.005 2*17 _______ 210,855 699 _y_j2__ 372,883 17.532 15.366 7.42 25*43 !*____ 8.38 I.03 5.97 83>179 191,356 1_21 1.98 405,781 617.335 6,34 6.68 ^?l6.437 ___£__ 8t333,3^3 7.11 NOTE? .04 Hinus sign denotes decrease, TREASURY DEPARTMENT WASHINGTON. FOR IMMEDIATE RELEASE, Thursday, June 25, 1959. D.C. A_.t The Treasury Department is offering for cash subscription: $3,000 million, or thereabouts, of 258-day Treasury bills, Tax Anticipation Series, to be dated July 8, 1959, and to mature March 22, 1960, and $2,000 million, or thereabouts, of 1-year Treasury bills to be dated July 15, 1959, and to mature July 15, 1960. (Issuance of the securities will be dependent upon the availability at time of issue of an adequate debt limitation.) The current cash financing will cover the major share of Treasury cash financing needs for the first quarter of the fiscal year. Treasury bills, Tax Anticipation Series The $3,000 million of Treasury bills, Tax Anticipation Series, will be offered on an auction basis on July 1, 1959. These bills will be dated July 8, 1959, and will mature March 22, 1960. They will be acceptable at par in payment of income and profits taxes due March 15, 1960. Treasury bills, 1-year The $2,000 million of 1-year Treasury bills will be offered on an auction basis on July 8, 1959. Notwithstanding the fact that these bills will run for 366 days, the discount rate will be computed on a bank discount basis of - 2- 360 days as is currently the practice on all issues of Treasury bills. The bills will be dated July 15, 1959, and will mature July 15, 1960. This is the third step in the Treasury's program looking to the eventual establishment of a pattern of 1-year maturities on quarterly dates in January, April, July, and October. General requirements All subscribers to each of the above issues of Treasury bills are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of the Treasury bills for which tenders are submitted under these offerings, until after the closing hours for tenders on July 1 and July 8, respectively. Full details regarding the offering of Tax Anticipation Treasury bills will be released for morning newspapers Monday, June 29, and for the oneyear Treasury bills on Monday, July 6. The new issues may be paid for by credit in Treasury tax and loan accounts. - 3- ___i__?____S___* 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 speci treatment, as such, under the Internal Revenue Code of 1954. The bills are subjec 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 interes 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 inter Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou of discount at which bills issued hereunder are sold is not considered to accrue such bills are sold, redeemed or otherwise disposed of, and such bills are exclud 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 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- on the printed forms and forwarded in the special envelopes which will be suppli 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 incorporate banks and trust companies and from responsible and recognized dealers in investm securities. Tenders from others must be accompanied by payment of 2 percent of t face amount of Treasury bills applied for, unless the tenders are accompanied by express guaranty of payment by an Incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bill Daylight Saving of this issue, until after one-thirty o'clock p.m., Eastern/s__a__K__t time, Wednes- ~^SmW~ day, July 1, 1959 . 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 submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $ 400,000 or less without stated price from any one bidder will be accepted in full at the average price (in thre decimals) of accepted competitive bids. Payment of accepted tenders at the price offered must be made or completed at the Federal Reserve Bank In cash or other i diately available funds on July 8. 1959 , provided, however, any qualified P_€J depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so no fied by the Federal Reserve Bank of its District. mmKxM TREASURY DEPARTMENT Washington A- RELEASE A. M. NEWSPAPERS, Monday, June 29. 1959 TCT- The Treasury Department, by this public notice, invites tenders for $ 5,000,000,000 , or thereabouts, of 258 -day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter prov The bills of this series will be designated Tax Anticipation Series, they will b dated July 8, 1959 , and they will mature March 22, 1960 They will be accepted at face value in payment of income and profits taxes due on March 15 I960 , and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers de siring to apply these bills in payment of March 15, 1960 , income and profits rW taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more tha fifteen days before March 15, 1960 , and receiving receipts therefor showing {-5 the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, 1960 , to the District Director of ___£ Internal Revenue for the District in which such taxes are payable. The bills wil 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 Daylight Saving hour, one-thirty o'clock p.m., Eastern/__OBS2E€R_: time, Wednesday, July 1, 1959 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 t price offered must be expressed on the basis of 100, with not more than three de mals, e. _;., 99.925- Fractions may not be used. It is urged that tenders be mad REASURY DEPARTMENT S T — _ — — ^ i m ..jmr IJUI»IJIMIIUU,U"I'J \-»i H'lrJ '~n'«.-MLJI—I WASHINGTON, D.C. RELEASE A.M. NEWSPAPERS, Monday, June 29, 1939. A-562 The Treasury Department, by this public notice, invites tenders for $3,000,000,000, or thereabouts, of 258-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated July 8, 1959, and they will mature March 22, i960. They will be accepted at face value in payment of income and profits taxes due on March 15, i960. and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, i960, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before March 15, i960, and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, I960, to the District Director of Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o'clock p.m.; Eastern Daylight Saving time, Wednesday, July 1, 1959. 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 mav 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 tr^nrlprs except for their own account. Tenders will be received wifhout deposit from incorporated banks and trust companies and from re-oonsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the - 2 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. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o'clock p.m., Eastern Daylight Saving time, Wednesday, July 1, 1959. 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 $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on July 8, 1959, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the . Internal Revenue Code of 195^. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For Durooses of taxation the amount of discount at which Treasury bills aboriginally sold by the United States is considered to be interest. Under slot ions 454 (b) and 1221 (5) of the Internal Revenue Code of 1QS4 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 a^cTo-tal assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his incSme 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 Treasury ' during gain of Reserve m ^their corr the loss. Bank Department ^isSue taxable S orterns Branch. Copies year Circular of the for of the Treasury which No. circular illii, .thebills return may Revised, and be isgovern obtained made, andthe as this from ordinary conditios notice any __dora mimm A. n. imsmmm, tmmtimy. flu* 30, X9$9* The treasury Department announced last evening that tl»» tenders for tw( of freamtxy bills, one series to be an addiUoimi issue of the bills dated April 2, 1959, asa! tfc* etfaasr series to be dat^„ July 2, 1959, which were offered on June 25, were sp#£«_d at ttss Federal Reserve Banks oa «ta£ 29» fensiers were invited for 11,100,000,000, or ther^bouto, of yl»d_y bills mM for 4500,000,000, or thereabouts, of 182-day bills, fti® devils of ii*e too series mm as follows: l82^1ay Tre_sury bille ^l-4ay ffceasnaqr bills a ® or Aommm mmrnimt Qetsber X9 l*$p y*rtwft—f»yft*w » (XlW^TtXM BJBSt Approx. Equiv. Approx.* J&Qtiiv. Fries High Low Average 99.210 99.200 3<125$ 3.®M j*xm% 98.188 3.58W 98-114 98*128 3.T31I 3.7031 a8 percent of the ajaount of 9i~day bills bid tor at the low price was accepted 57 pmrmtit of the wmmnt of lS2~_ay bill® b M f#r at the low prise M M accepted Ktttt B i f i K APPLIED F01 AID A C O i m B II RSOOMlI XBSSmt DlSTRICISt Msfcrist Applied Bar Bos torn lew fork Philadelphis Cleveland 1 -5,573,000 1,376,057,00© 26,218,000 2*1,31*9,000 7,588,000 14,1*82,000 197,318 „000 20,211,000 9,063,000 22,186,000 12,864,000 £*1CM_SB3XI AUaaia Ghleag® St. iMmAm Minneapolis fiuisas City B&llas Ssa nmaolieo TOTALS ,«M**<W 11,818,715,000 Accepted 15,573,00© 726,217,000 11,218,000 ia,i49,ooo 7,588,000 34,1*82,000 356,318,000 20,211.000 9,063,000 20,136,000 12,86i*,000 H,100,025,O0O_/ ff***tfl_P Ajqpilisd For Accepted $ 3,475,000 706,006,000 8,807,000 21,100,000 594*000 3,625,000 88,176^000 2,029,000 1,372,000 5,968,000 2,248,000 # 3,l*?5,ooo A?i^>0OQ $892,635,000 363,708,000 3,807,000 21,100,000 594,000 3,625,000 62,746,000 2,029,000 1,372,000 5,368,00® 2,248,000 • P_ffl*_9ffl tSO0,O05,000_/ y Include® #182,509,000 nsneoiqwtittr* tenders accepted st tbe average price of 99.200 of Imlndes §33,396*000 noneaflpetitive tenders accepted at the average pries of 98.128 TREASURY DEPARTMENT ___________ W A S H I N G T O N , D.C. RELEASE A. M. NEWSPAPERS, Tuesday, June 30, 1959* A-563 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated April 2, 1959, and the other series to be dated July 2, 1959, which were offered on June 25, were opened at the Federal Reserve Banks on June 29. Tenders were invited for .1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows j 182-day BANGE OF Treasury ACCEPTED bills 91-day Treasury bills maturing October 1, 1959 COMPETITIVE BIDS j Price High Low Average 99.210 99.188 99.200 Approx. Equiv. Annual Rate 3.125$ 3.212*. 3.161$ maturing December 31, 1959 Price 98.188 98.114 98.128 Approx. Equiv. Annual Rate 3.581$ 3*731% 3.703$ U8 percent of the amount of 91-day bills bid for at the low price was accepted 57 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTSs District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS Applied For \ 25,573,000 1,376,857,000 26,218,000 hi,11*9,000 7,588,000 14,1*82,000 197,318,000 20,211,000 9,063,000 22,186,000 12,861*, 000 ______ 206,000 $1,818,715,000 Accepted Applied For 15,573,000 : $ 3,1*75,000 706,008,000 726,217,000 : 8,807,000 000 : 11,218, 21,100,000 000 : 1*1,149, 59U,000 7,588,000 : 3,625,000 14,1*82,000 : 88,176,000 156,318,000 : b U y CmSm-Am *f 2,029,000 000 j 9,063,000 : 1,372,000 20,136,000 : 5,968,000 12,861*,000 : 2,21*8,000 65,206,000 r 1*9,233,000 tL,10O,O25,O0Ca/J $892,635,000 Accepted $ 3,475,000 363,708,000 3,807,000 21,100,000 59h,000 3,625,000 62,71*6,000 2,029,000 1,372,000 5,368,000 2,21*8,000 29,933,000 $500,005,000b/ a/ Includes Jl82,509,000 noncompetitive tenders accepted at the average price of 9 of Includes $33,396,000 noncompetitive tenders accepted at the average price of 98.128 v ^ - 7dsvelopsaent, at home sad abroad. We In the foreipi financial field are particularly aware of its ravages in many of the less developed countries, and of the great impediment it creates to their further economic progress. Heal and sustainable growth can only take place when there is a elimate ©f confidence — where there is confidence te save and confidence to invest. Stability of prices proisotee this confidence. It advances the supply of real capital for economic growth and strengthens the monetary system itself. It is because sound m& sustainable progress requires financial stability and because it is defeated by inflation that we have a deep convietloipa fiscal soundness. The American people must contixue to show their determination to shape their fiscal policy so as to avoid pressures for inflation. Orderly finances and a stable monetary system in the TJ.S are not only a key to internal strength* Ihey are isjsortant to maintaining the strength of the !_*ee world. It is by aainimining our financial strength that we are able to discharge our international responsibilities. It is because of our financial strength that we are able to invest abroad, and make loans to the less developed countries. I assure you that oar fiscal acts are watchedfeefmany nations around the world, with whose representatives I coiae into daily contact, fhey are well InforsKid and they watch very carefully to see whether we practice at horse the fiscal soundness which we preach abroad*' I am confident that we will do so, and thus make the most iH^ertant contribution of all, not miy to our expanding econoE^r, but to our capacity to assist in the economic growth of the less developed countries of the world* m O ** in 1956 to m annual rate of more than double -that mount in ®m firmt half of 1958. Though a substantial amount of this fturp-M *»» finaneed %W the nmportn of European capital* it appears that in. 1958 over it billion was paid to Europe of these pretoiinate^ lasa developed countries m& that a large part of this represented net receipts fcy these less developed countries from Ox* lilted States* Another soMu_pls of the growing financial strength of ^OBtmm garopa;' and «£apan, has boon the increase in their international reserves, fhegr have hmm able to bnild up their gold and dollar reserves rather steadily and substantially, for mxmmoX®. in ths past three years "Western ttope and Smpmm have added almost I5#5 billion to their gold and dollar holdings **** mo dollars being &©th officially and privately held. The sound rebuilding of reserves by both Western Surept and Japan has enabled them t© finance an laaraaalng flow of thsir trade with the industrially lagging countries. ' this has been reassuring and welesiir. As we look ahead into the future, we believe that in their own Interest, as well as in that of Hie trmo world, Western Europe and Japan should play an $m®rmmm$M$y important role In the *jemm% task that lies ahead in financing the development of Hie less developed countries. I would now like to discuss the third, and most important element, in the economic effort of the Mestara World to assist the less developed oountrles <*>*» and. feat is the slgnificanc® of Hi® soundness, and vitali^ of the n.S. eeo&ei^v It is readily evident -feat the rest of the world is af Jfeatad %w 0 # S. finaiisial and economic contributions' to their development. It should fee no less evident that they are also af Hated by what we are doing in our own eoon®w» %m thm Resent day world, V** affacts ©f-sotmd financial and mmmmmmA* progress, in the Ihited States *** or the unfortunate consequences ef inflation or deflation — are not confined within national boundaries« Me in -the Halted States have faith and confidenee in our economic ibture* It is to assure such a fnte»e that mmy leading figures in the Administration and Congress repeatedly stress the fiscal attributes of a sound eoonoi^r. The financial spsspiisiies for process are savings and Investment, There is no real source for acquiring the neoessajy funds either tm developing tins tfoittd States or fm ailing tfea _nder*d®vel@ped world, ether than savings — the excess of what we earn over what we spend. Health Ss not brought into being* bgr msmXg increasing Hie naaber of dollars An the @com©i$" through inflationary ftnanelng. lather, it is the restUt of hard work, production m& savings. It is tempting to follow what appears to be the easy road t© the attainment of the acrostic olgeetive of mmy Individual giroup, at the sacrifice of wmrnXX financial soundness, the very process, however, is self-defeating — for it prodoaaa inflation* Inflation distorts economls decisions, misdirects investiwnt, and works serion® hardships on large segments of the population *• it is a thief of savings and of ©onfidenoe ~~ deaMtLeattjr and internationally. It is the enemy of sound -5the benefits of the private enterprise system* I understand that the afternoon session ef this Conference Mill be devoted to the probleias of private investment abroad and what can be done to encourage it* I would like, therefore, %m mention just two more points about it* First, I believe that to the extent the U.S. Governrrent is involved in facilitating the flow of private capital abroad through tax measures, guarantees, or other methods, these efforts should be directed toward facilitating the flow of capital to the less developed countries. Second, all countries have te compete for available private capital. As was said in a report of the Colombo Flan Consultative Coaeaittee "private capital has a wide area of choice and it sill tend to go where it is most secure and profitable and where the friendly reeeptlvifcy of Governments is assured". In a word, it has to he attracted by the less developed nations* To this extent there is a definite saeponsibility on the pert of these nations to maintain the kind of investment "climate" within which outside capital can function most effectively. X have spoken about what the U.S. seeks to achieve and what we have done about it during the last year. Many elements ef these programs, whether carried out through international organisations or directly, are aimed at helping the less developed countries is their own efforts te attain sound and sustainable growth. This indeed has become increasingly a focal point of our international economic and financial activity. ^e hope that increasingly, t?*3„ concern for the progress of the lass developed countries, will be shared as well by the other industrialised nations of 'the free world, where our earlier post war efforts for financial mnd economic reconstruction were concentrated. In recent years Western Europe and Japan have forged ahead with the task of rebuilding their financial strength, and now have additional resources which can be brought into action in the free world effort to prostote progress in the newly developing countries. The lopreasive economic gains of Western Surope particularly have been seen in a number of events during the past year* As one example, the leading European countries last December moved to make their currencies convertible for non-residents. These moves were important financially^ they were ioportant also as indications of their own confidence in their growing economic and financial strength* They reflected the very substantial progress made in Western Surope in the availability of savings, in the growth of production and in the development of export capacity of a kind particularly needed by the less developed areas of the free world* It has been estimated that Western Europe's current account surplus — the excess of net sales over purchases of goods and services — with countries other than the United States and Canada rose from $1.5 billion ^1% 4the Latin American Republics #250 sillisn (50 percent of each subscription to be in national currencies). The U.S. proportion of the "Fund tor Special Operations* will be higher. The Bank is designed to supplement other sources of credit, assist the countries of latin America in mobilizing their own resources and in encouraging domestic and foreign private capital to undertake desirable investments to promote the economic development of these countries. It is particularly noteworthy in that our latin American friends will not only contribute substantially to its resources, but will also play a vital role in the management of the Bank. It is, in all its aspects, a common inter-American effort* la addition to these major multilateral steps taken during the past year, bilateral activities of the U.S. in the field of international finance continued in vigorous operation. The Sxport-Isport Sank, which received |2 billion of additional lending authority earlier in calendar year 1958, continued to contribute to economic progress mf less developed countries through its Xomn operations which finance the exportation of U.S. goods and services. These loans ere repayable in dollars. In addition, the Export-Import Bank isade a number of foreign currency loans from foreign currency resources nade available under the so-called Cooley Aiaendnsent, to American companies operating abroad. lou are all faatiliar with the various elsnents of the Mutual Security Program, which Is an important part of U.3# Government foreign economic and financial activities. I would like te mention especially one of the more recently established phases of the Mutual Security Program and that is the Development loan fund* Laundhed in 1957, the DLF got actively underway in 1958* It provides capital for economic development, and Beets the need which exists for financing sound projects that promote the long-term economic growth of the less developed areas, but which do not qualify for financing from other sources* A principal feature in the tenas of the Development Loan Bind is the authority to accept repaynant in the currency of the borrowing country where warranted. The l6nd received appropriations of #550 aillion in fiscal 1959, and its I960 appropriation is currently under discussion. the Govermaent has also given particular study during this past year to various proposals to enhance the constructive role of private investment in promoting growth of less developed areas* Although it is said that the less developed countries do not sometimes, share our long tradition of free enterprise, it aeem to me that there is a growing awareness in these developing countries of its iisportance. In this connection, the general acceptance at Buenos Aires by the Committee of 21 of a detailed U*$# resolution on the role of private capital is worthy of comment. lou note it also in the day-to-day contacts with people from South and Southeast Asia and in the reports of such bodies as the Colombo Plan Consultative Committee. We in the Ohited States are particularly aware of the fast that private efforts and initiative have made our country economically strong* Having seen, and knowing what it can do, we in Government are making intensive efforts to extend abroad still further t«m - 3very remote contingency. The Bank's activities are gathering momentum, particularly ia the developing areas, and the increase in callable capital will permit the Bank to continue to finance its long-term lending operations for economic development through the sale of Its bonds to private American and other investors* These two matters, discussed in the Presidents August 26 latter to the Secretary, have been accomplished, and we feel these actions are an iaiportant contribution to the well-being of the entire f_*ee world* The President also requested the Secretary of the Treasury te explore the feasibilities of a proposed "International Development Association0 as an affiliate of the International Bank* It is envisaged that the International Development Association, recognizing the United ability of certain developing countries to service additional debt on usual terras, would further advance economic development by making loans wholly or partly repayable in the currency of the borrower, thus complementing on an international basis the activity of the Development Loan Bind in the bilateral field* Capital would be provided through subscription by all member countries. This Association would offer a further opportunity for the other industralized countries af the free world to stake use ef their rapidly growing financial strength and export capacity, to join with the U.S. in promoting growth of the less developed areas* Provision would also be made for the use by the Association of local currencies contributed by the U.S. and arising from our surplus agricultural commodity sales abroad, on the basis of understandings with the countries whose currencies arm involved. Other donor count-d*e_£-^ould make similar contributions if they so desire* The U.S# Government is presently carrying on informal discussions with other governjaents relative to the establisteaent of this International Development Association and we hope that a specific plan can be developed in the coming months. During this past year also, we have seen a further recognition of the special political, economic,and financial inter-relationships of the Ansricas in the proposed Inter-Agasrican Development Bank. It had become apparent in recent years that such an institution, long advocated by our neighbors to the South, would be an important link in the historical chain of cooperation between the United States and the other Aiaerican Republics, and it was ray privilege to be the U.S. member of the Specialised Committee for drafting a Charter for this new financial institution. We were in continuous session for three months and completed a draft charter in early April. Legislation is now before our Congress for acceptance of membership by the U*S and to make provision for the U.S. contribution* AH the members will share in the cost of the Bank. The lank would have a basic capital of $850 million and in addition a $150 million HPund for Special Operations.": About half the basic capital is to be paid-in, the remainder will constitute a guarantee fund for the securities the lank will issue* Of the paid-in-capital, the draft charter provides that the U*S will subscribe $150 million payable over several years and - 2 - Sow, what have we done during the past year? In money terns, X could cite various figures to demonstrate this point, but they do net tell the whole story. Ia fiscal year 1959 we estimated new obligational authority of soss* $7 billion in the international finance sad eeonosde field* A significant part of this, as we shall see later, does net involve direct expenditures by the QeveraaaBt, although it does involve the use of dollar resources from the private sector ef the econoay. As the current fiscal year closes, we have Bade expenditures from past and new legislation of son* #3 billion ia this field, (this includes subscription to the IMF, net expenditures ef the ^port-Isport -task, aid eeonosde parts ef the Mitual Security program.) These figures would be increased still more if we added the foreign currency loans sade possible by our agricultural sales prograa, or the expenditures aade abroad in connection with the Government's military programs and regular civilian operations. I think you will agree as we review the U.S. GovernaenVs specific prograas undertaken or continued from the past to carry out our international financial and economic purposes that they have been substantial, varied, and dynas&c. Early in the fiscal year, the President requested the Secretary of the Treasury to propose to the Governors of the International Monetary Jbad and of the International lank for Reconstruction and Development that prompt consideration be given to the advisability of enlarging the resources of those institutions. The proposals were sade, and too matter considered within the two institutions. In December, the Executive Directors of the Jfcnetary Smd proposed increases in the quotas of ite 68 aeabers, with a 50 percent increase recommended for moot countries, including the United States* The ftaad, mm you know, is a short-term international credit institution, which assists the monetary authorities of the aeaber countries to carry out sound financial policies. The quota increase would enable the Rmd, through Its tiisely short-tern aseistaaee, to aeet the foreign exchange difficulties and emergencies which nay arise in Hie years ahead* About two weeks ago the President signed the legislation permitting aa increase in the U.S. quota (the largest single quota) ia the Pond fro* $2,750 irillion to $4,125 million. This required a payaeat of $344 Million ia gold, the reminder taking the for* of non-interest bearing notes. Last week we aade our payaent* Other Members will pay a total of about $900 million in gold, SBJL\ the aggregate increase in the ftnd*a resources will bring its total te the equivalent of H4*3 billion. The Directors of the International Bank recoassended that the total authorised capital of that institution be increased to J&l billion mn4 the subscriptions of the 68 asaber countries generally by 100 pereent. The legislation I mentioned persdtted the U.S. to increase its contingent liability to the Bank by $3,175 sdllion. Ho cash payaeat is required since the Sank will not call up any part ef the increased capital subscriptions unless it is necessary to aset obligations of the Bank — a "1 (, TREASURY. DEPAR1MBTC Washington EHitMS M ASSISTAUT SBCHITARX 0? THE TEBASUaT T. 01ATD0I UPTOlf, Af A XAITONAL C0HJSSB1CS OF IBS IlfHWATIOMAI.. MOMOWLt POUOT ASSOCIATEOII, NAXI&OMBE' nom, msMmtmn9 D. O. Jims 30, 1959. TIE u.s. Go?mTMsiT*s mm H mfrnmnon^ . II i . m m • .II'M.I.I mi . i im ni i in i m m IM.I.IIIII n n I«I i in III HIIIIIK i . miimw mmmn i III lilt i 11. 'iin __?• Chairman, ladies and Gentlssien It Is a privilege to speak to the distinguished members and guests of The International Sooaoaie Policy Association on the subjeot of the U.S. Government's Role in International Bnance* It is, X think, an appropriate recognition of the in^ortance of this subject, that it eooss first on your program* Today (June 30) marks th® close of our financial year. It has been a challenging year In the field of International finance. Baring the course of it mmiy iisportant measures have been brought to completion, md other plans have been significantly advanced* I think it, therefore, particularly appropriate to review these prophase today. first, however, what is our objective7 The U*S. Government, in both its domestic and International activities is concerned basieaily with protecting and advancing the national interest, and improving the securi^and well-being of its people. In achieving this objective, we recognise the very important role of sound and sustainable progress in the economies of the fro® world. President Eisenhower, some months ago, listed three principal elements in maintaining an economic environment which is both dynamic and financially sounds ®(l) a continuing growth in productive investment, international as well as doiaestics (2) financial polioies that will cossaand the confidence of the public, and assure the strength of currencies; and (3) mutually beneficial international trade and a constant effort to avoid hampering restriction® on the freedom of exchange transactions.n The goveriasisnt has an liaportant part to play in this. The role of our Government, however, rests both teaediately and ultimately on the energies, initiatives and resources of the private eitisea* It is through private citisens and private companies that the greater contributions toward the achleveiaent of our international financial and economic objectives are made. It is there where the day-<te*day contacts are made In eonsaerce, industry, and finance, and where the sharing of experience, skills, and techniques with the free world in all these lis Ids takes place. Th the full sense our Oovernaent objectives are national objectives. TREASURY DEPARTMENT Washington REMARKS BY ASSISTANT SECRETARY OF THE TREASURY T. GRAYDON UPTON, AT A NATIONAL CONFERENCE OF THE INTERNATIONAL ECONOMIC POLICY ASSOCIATION, MAYFLOWER HOTEL, WASHINGTON, D. C. JUNE 30, 1959. THE U.S. GOVERNMENT'S ROLE IN INTERNATIONAL FtNANCE Mr. Chairman, Ladies and Gentlemen It is a privilege to speak to the distinguished members and guests of The International Economic Policy Association on the subject of the U.S. Government's Role in International Finance. It is, I think, an appropriate recognition of the importance of this subject, that it comes first on your program. Today (June 30) marks the close of our financial year. It has been a challenging year in the field of international finance. During the course of it many important measures have been brought to completion, and other plans have been significantly advanced. I think it, therefore, particularly appropriate to review these programs today. First, however, what is our objective? The U.S. Government, in both its domestic and international activities is concerned basically with protecting and advancing the national interest, and improving the security and well-being of its people. In achieving this objective, we recognize the very important role of sound and sustainable progress in the economies of the free world. President Eisenhower, some months ago, listed three principal elements in maintaining an economic environment which is both dynamic and financially sound J "(l) a continuing growth in productive investment, international as well as domestic; (2) financial policies that will command the confidence of the public, and assure the strength of currencies; and (3) mutually beneficial international trade and a constant effort to avoid hampering restrictions on the freedom of exchange transactions." The government has an important part to play in this. The role of our Government, however, rests both immediately and ultimately on the energies, initiatives and resources of the private citizen. It is through private citizens and private companies that the greater contributions toward the achievement of our international financial and economic objectives are made. It is there where the day-to-day contacts are made in commerce, industry, and finance, and where the sharing of experience, skills, and techniques with the free world in all these fields takes place. In the full sense our Government objectives are national objectives. - 2 - Now, what have we done during the past year? In money terms, I could cite various figures to demonstrate this point, but they do not tell the whole story. In fiscal year 1959 we estimated new obligational authority of some $7 billion in the international finance and economic field. A significant part of this, as we shall see later, does not involve direct expenditures by the Government, although it does involve the use of dollar resources from the private sector of the economy. As the current fiscal year closes, we have made expenditures from past and new legislation of some $3 billion in this field. (This includes subscription to the IMF, net expenditures of the Export-Import Bank, and economic parts of the Mutual Security program.) These figures would be increased still more if we added the foreign currency loans made possible by our agricultural sales program, or the expenditures made abroad in connection with the Government's military programs and regular civilian operations. I think you will agree as we review the U.S. Government's specific programs undertaken or continued from the past to carry out our international financial and economic purposes that they have been substantial, varied, and dynamic. Early in the fiscal year, the President requested the Secretary of the Treasury to propose to the Governors of the International Monetary Fund and of the International Bank for Reconstruction and Development that prompt consideration be given to the advisability of enlarging the resources of those institutions. The proposals were made, and the matter considered within the two institutions. In December, the Executive Directors of the Monetary Hind proposed increases in the quotas of its 68 members, with a 50 percent increase recommended for most countries, including the United States. The Rind, as you know, is a short-term international credit institution, which assists the monetary authorities of the member countries to carry out sound financial policies. The quota increase would enable the Fund, through its timely short-term assistance, to meet the foreign exchange difficulties and emergencies which may arise in the years ahead. About two weeks ago the President signed the legislation permitting an increase in the U.S. quota (the largest single quota) in the Fund from $2,750 million to 14,125 million. This required a payment of $3kk million in gold, the remainder taking the form of non-interest bearing notes. Last week we made our payment. Other members will pay a total of about $900 million in gold, and the aggregate increase in the Iund's resources will bring its total to the equivalent of $14*3 billion. » The Directors of the International Bank recommended that the total authorized capital of that institution be increased to $21 billion and the subscriptions of the 68 member countries generally by 100 percent. The legislation I mentioned permitted the U.S. to increase its contingent liability to the Bank by $3,175 million. No cash payment is required since the Bank will not call up any part of the increased capital subscriptions unless it is necessary to meet obligations of the Bank — a - 3very remote contingency. The Bank's activities are gathering momentum, particularly in the developing areas, and the increase in callable capital will permit the Bank to continue to finance its long-term lending operations for economic development through the sale of its bonds to private American and other investors. These two matters, discussed in the President's August 26 letter to the Secretary, have been accomplished, and we feel these actions are an important contribution to the well-being of the entire free world. The President also requested the Secretary of the Treasury to explore the feasibilities of a proposed "International Development Association" as an affiliate of the International Bank. It is envisaged that the International Development Association, recognizing the limited ability of certain developing countries to service additional debt on usual terms, would further advance economic development by making loans wholly or partly repayable in the currency of the borrower, thus complementing on an international basis the activity of the Development Loan Rind in the bilateral field. Capital would be provided through subscription by all member countries. This Association would offer a further opportunity for the other industralized countries of the free world to make use of their rapidly growing financial strength and export capacity, to join with the U.S. in promoting growth of the less developed areas. Provision would also be made for the use by the Association of local currencies contributed by the U.S. and arising from our surplus agricultural commodity sales, abroad, on the basis of understandings with the countries whose currencies are involved. Other donor countries could make similar contributions if they so desire. The U»S# Government is presently carrying on informal discussions with other governments relative to the establishment of this International Development Association and we hope that a specific plan can be developed in the coming months. During this past year also, we have seen a further recognition of the special political, economic,and financial inter-relationships of the Americas in the proposed Inter-American Development Bank. It had become apparent in recent years that such an institution, long advocated by our neighbors to the South, would be an important link in the historical chain of cooperation between the United States and the other American Republics, and it was my privilege to be the U.S. member of the Specialized Committee for drafting a Charter for this new financial institution. We were in continuous session for three months and completed a draft charter in early April. Legislation is now before our Congress for acceptance of membership by the U.S and to make provision for the U.S. contribution* All the members will share in the cost of the Bank. The Bank would have a basic capital of $8^0 million and in addition a $150 million "Rind for Special Operations.^ About half the basic capital is to be paid-in, the remainder will constitute a guarantee fund for the securities the Bank will issue. Of the paid-in-capital, the draft charter provides that the U.S* will subscribe $150 million payable over several years and -4 the Latin American Republics $250 million (50 percent of each subscription to be in national currencies). The U.S. proportion of the "Rind for Special Operations" will be higher. The Bank is designed to supplement other sources of credit, assist the countries of Latin America in mobilizing their own resources and in encouraging domestic and foreign private capital to undertake desirable investments to promote the economic development of these countries. It is particularly noteworthy in that our Latin American friends will not only contribute substantially to its resources, but will also play a vital role in the management of the Bank* It is, in all its aspects, a common inter-American effort* In addition to these major multilateral steps taken during the past year, bilateral activities of the U.S. in the field of international finance continued in vigorous operation. The Export-Import Bank, which received $2 billion of additional lending authority earlier in calendar year 1958, continued to contribute to economic progress of less developed countries through its loan operations which finance the exportation of U.S. goods and services. These loans are repayable in dollars. In addition, the Export-Import Bank made a number of foreign currency loans from foreign currency resources made available under the so-called Cooley Amendment, to American companies operating abroad. You are all familiar with the various elements of the Mutual Security Program, which is an important part of U.S# Government foreign economic and financial activities. I would like to mention especially one of the more recently established phases of the Mutual Security Program and that is the Development Loan Fund. Launched in 1957, the DLF got actively underway in 1958* It provides capital for economic development, and meets the need which exists for financing sound projects that promote the long-term economic growth of the less developed areas, but which do not quality for financing from other sources. A principal feature in the terms of the Development Loan FUnd is the authority to accept repayment in the currency of the borrowing country where warranted. The Ruid received appropriations of 1550 million in fiscal 1959, and its I960 appropriation is currently under discussion. The Government has also given particular study during this past year to various proposals to enhance the constructive role of private investment in promoting growth of less developed areas. Although it is said that the less developed countries do not sometimes, share our long tradition of free enterprise, it seems to me that there is a growing awareness in these developing countries of its importance. In this connection, the general acceptance at Buenos Aires by the Committee of 21 of a detailed U.S. resolution on the role of private capital is worthy of comment. You note it also in the day-to-day contacts with people from South and Southeast Asia and in the reports of such bodies as the Colombo Plan Consultative Committee. We in the United States are particularly aware of the fact that private efforts and initiative havo made our country economically strong. Having seen, and knowing what it can do, we in Government are making intensive efforts to extend abroad still further - 5the benefits of the private enterprise system. I understand that the afternoon session of this Conference will be devoted to the problems of private investment abroad and what can be done to encourage it. I would like, therefore, to mention just two more points about it. First, I believe that to the extent the U.S. Government is involved in facilitating the flow of private capital abroad through tax measures, guarantees, or other methods, these efforts should be directed toward facilitating the flow of capital to the less developed countries. Second, all countries have to compete for available private capital. As was said in a report of the Colombo Plan Consultative Committee "private capital has a wide area of choice and it will tend to go where it is most secure and profitable and where the friendly receptivity of Governments is assured". In a word, it has to be attracted by the less developed nations. To this extent there is a definite responsibility on the part of these nations to maintain the kind of investment "climate" within which outside capital can function most effectively. I have spoken about what the U.S. seeks to achieve and what we have done about it during the last year. Many elements of these programs, whether carried out through international organizations or directly, are aimed at helping the less developed countries in their own efforts to attain sound and sustainable growth. This indeed has become increasingly a focal point of our international economic and financial activity. We hope that increasingly, U.S^ concern for the progress of the less developed countries, will be snared as well by the other industrialized nations of the free world, where our earlier post war efforts for financial and economic reconstruction were concentrated. In recent years Western Europe and Japan have forged ahead with the task of rebuilding their financial strength, and now have additional resources which can be brought into action in the free world effort to promote progress in the newly developing countries. The impressive economic gains of Western Europe particularly have been seen in a number of events during the past year. As one example, the leading European countries last December moved to make their currencies convertible for non-residents. These moves were important financially; they were important also as indications of their own confidence in their growing economic and financial strength. They reflected the very substantial progress made in Western Europe in the availability of savings, in the growth of production and in the development of export capacity of a kind particularly needed by the less developed areas of the free world. It has been estimated that Western Europe's current account surplus — the excess of net sales over purchases of goods and services — with countries other than the United States and Canada rose from $1.5 billion - 6 in 1956 to an annual rate of more than double that amount in the first half of 1958. Though a substantial amount of this surplus was financed by the "export" of Europe an capital, it appears that in 1958 over y>2 billion was paid to Europe by these predominately less developed countries and that a large part of this represented net receipts by these less developed countries from the United States. Another example of the growing financial strength of Western Europe and Japan, has been the increase in their international reserves. They have been able to build up their gold and dollar reserves rather steadily and substantially, ibr example, in the past three years Western Europe and Japan have added almost $5.5 billion to their gold and dollar holdings — the dollars being both officially and privately held. The sound rebuilding of reserves by both Western Europe and Japan has enabled them to finance an increasing flow of their trade with the industrially lagging countries. This has been reassuring and welcome. As we look ahead into the future, we believe that in their own interest, as well as in that of the free world, Western Europe and Japan should play an increasingly important role in the great task that lies ahead in financing the development of the less developed countries. I would now like to discuss the third, and most important element, in the economic effort of the Western World to assist the less developed countries — and that is the significance of the soundness, and vitality of the U.S. economy. It is readily evident that the rest of the world is affected by U.S. financial and economic contributions to their development. It should be no less evident that they are also affected by what we are doing in our own economy. In the present day world, the effects of sound financial and economic progress, in the United States — or the unfortunate consequences of inflation or deflation — are not confined within national boundaries• We in the United States have faith and confidence in our economic future. It is to assure such a future that many leading figures in the Administration and Congress repeatedly stress the fiscal attributes of a sound economy. The financial requisites for progress are savings and investment. There is no real source for acquiring the necessary funds either for developing the United States or for aiding the under-developed world, other than savings — the excess of what we earn over what we spend. Wealth is not brought into being by merely increasing the number of dollars in the economy through inflationary financing. Rather, it is the result of hard work, production and savings. It is tempting to follow what appears to be the easy road to the attainment of the economic objective of any individual group, at the sacrifice of overall financial soundness. The very process, however, is self-defeating — for it produces inflation. Inflation distorts economic decisions, misdirects investment, and works serious hardships on large segments of the population — it is a thief of savings and of confidence — domestically and internationally. It is the eneriy of sound - 7 - development, at home and abroad, vie in the foreign financial field are particularly aware of its ravages in many of the less developed countries, and of the great impediment it creates to their further economic progress. Real and sustainable growth can only take place when there is a climate of confidence — where there is confidence to save and confidence to invest. Stability of prices promotes this confidence. It advances the supply of real capital for economic growth and strengthens the monetary system itself. It is because sound and sustainable progress requires financial stability and because it is defeated by inflation that we have a deep conviction m fiscal soundness. The American people must continue to show their determination to shape their fiscal policy so as to avoid pressures for inflation. Orderly finances and a stable monetary system in the U.S are not only a key to internal strength. They are important to maintaining the strength of the free world. It is by maintaining our financial strength that we are able to discharge our international responsibilities. It is because of our financial strength that we are able to invest abroad, and make loans to the less developed countries. I assure you that our fiscal acts are watched by many nations around the world, with whose representatives I come into daily contact. They are well informed and they watch very carefully to see whether we practice at home the fiscal soundness which we preach abroad. I am confident that we will do so, and thus make the most important contribution of all, not only to our expanding economy, but to our capacity to assist in the economic growth of the less developed countries of the wor Treas. HJ 10 .A13P4 v.117 Treas. HJ 10 .A13P4 U "#?" i T r e a s u r y Dept, Press Releases U.S. Treasury Dept. Press Releases TITLE v.117 BORROWER'S NAME U.S. TREASURY LIBRARY 1 0031489