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- 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 -

_-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

^ f^-

.^~-

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

• •

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

RIIJSASB A. M. HB*3i_PS!_,

; /

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

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

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

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

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

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
,

______

^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

...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

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

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

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

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

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$

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

- 2itA*4e^;*;*^*;*;**;w:*.».t:4;t:4;***t

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

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

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

£*_*

Monday, April 20, 1959

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

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

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.

- •

"^""^

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

Whole milk, fresh or sour Calendar Year

3,000,000

Gallon

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.

IMMEDIATE RELEASE
FRIDAY, APRIL 1 7 , 1959.

A-497

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

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

3,000,000

Pound

2,595,789

80,000,000

Pound

3,378,580

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

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

: : 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

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

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

1,500,000

4,565,642

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

TREASURY DEPARTMENT
Washington, D. C.

A-499

MEDIATE RELEASE
Friday, April 17, 1959

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 . . .

. »
. 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

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

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

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

l6,UQpQ0Q

15,920,000

7,520,000

HTX\

ugoslovia

5,440,000

•

15,760,000

2,589,453

6,030,000

6,080,000

17,840,000

6,080,000

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

Canada

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

Yugoslovia
All other foreign
countries (totad)

6,560,000

PH2?„P_3 IN TH2 BOSSA- 0~ CUSTOMS

2,589,453

36,880,000

12,830,000

12,877,539

15,760,000

6,030,000

6,080,000

5,440,000

7,520,000

37,840,000

3,600,000

70,480,000

6,320,000

35,120,000

3,760,000

3*757*737

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

23,476,136 37*840,000

5,781,905

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

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

TREASURY DEPARTMENT
Washington, D. C.

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

Canada

13,440,000

7,607,859

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

3,800,291

6,320,000

1,246,333

35,120,000

9,635,411

3,760,000

17,840,000

23,476,136

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

70,480,000

6,080,000

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

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
%

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

- 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-

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.

- 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
_>

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 -

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-

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-

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

< /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
...

->•

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

98.39^

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

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