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i• LIBRARY P W M 5030 JUN 141972 TREASURY DEPARTMENT 527479 - 3> • s>;>.#,.M.*l«fi-JW-»_*. »<&:'> from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $ 200,000 or less for the addition bills dated April 9, 1959 , ( 91 days remaining until maturity date on October 8, 1959 ) and noncompetitive tenders for $ 100,000 or less for the "Ipig 3$@ft) 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 respec- tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 9. 1959 in cash or other immediately available funds or in a like face amount of Treasury bills mat es July Qjvlg59 Cash and exc hange 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 fflB&xx±ia_KSBft_*Bc TREASURY DEPARTiMEuT Washington A ' y^^ y^j ^ RELEASE A. M. NEWSPAPERS, Thursday. July 2 J 9 5 9 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of frl.T600.000.000 , Pr thereabouts, f cash and in exchange for Treasury b^Llls maturing July 9^959 > ln the ™oymt of $1.600.093,000 y as follows: 91 -day bills (to maturity date) to be issued July 9,1959 , > in the amount of $ 1.200,000.000 y P* thereabouts, representing an additional amount of bills dated April 9.1959 y and to mature October 8. 1959 y originally issued in the amount of $400.047.000 y the additional and original bills to be freely interchangeable. 182 -day bills, for $400,000,000 y or thereabouts, to be dated July 9, 1959 3ps5 y and to mature ~ January 7' I960 3$J&fc 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closin Daylight Saving hour, one-thirty o'clock p.m., Eastern/gtaadzrak time, Monday, July 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 price offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, THURSDAY, JULY 2, 1959 A-565 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 July 9, 1959, In the amount of $ 1,600,093,000, as follows: 91-day bills (to maturity date) to be issued July 9, 1959, in the amount of $ 1,200,000,000, or thereabouts, representing an additional amount of bills dated April 9, 1959* and to mature October 8, 1959* originally issued in the amount of $ 400,047,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated July 9. 1959, and to mature January J, I960, 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, July 6, 1959 . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It Is urged that tenders be made on the printed forms and forwarded In the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank Dr trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these"reservations, noncompetitive tenders for $200,000 or less for the additional bills dated April 9, 1959, (91 days remaining until maturity date on October 8, 1959) and noncompetitive tenders for $ 100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders In accordance with the bids must be made or completed at the Federal Reserve Bank on July 9, 1959, in cash or other immediately available funds or In a like face amount of Treasury bills maturing July 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 oOo return is made, as ordinary gain or loss. » Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions Federal of theirReserve Issue. Bank Copies or Branch. of the circular may be obtained from any Wkj^ f- RELMSE A. M. NEWSPAPERS, Thursday, July 2, 1959. The Treasury Department announced last evening that the tenders for $3,000,090,OC or thereabouts, of Tax Anticipation Series 258-day Treasury bills to be dated Jul 1959, and to mature March 22, I960, which were offered on June 29, were opened at Federal Reserve Banks on July 1. The details of this issue are as follows? Total applied for - 14,299,054,000 Total accepted - 3,000,328,000 (includes 1327,239,000 entered on a noncompetitive basis and accepted in fall at the average price shown below) Range of accepted competitive bids? High Low - 97.239 Equivalent rate of discount approx. 3.853*per annum n n -97.033 *:.-***," " 4.140* n " - .ea: Average - 97-080 "'•DO: 4.075£ * (9 percent of the amount bid fer at the low price was accepted) Federal Reserve District Total Applied for Total Accepted Boston Hew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco # 158,271,000 1,995,727,000 173,472,000 397,009,000 120,994,000 145,566,000 549,412,000 96,495,000 128,120,000 98,527,000 152,310,000 283,151,000 I 14,299,054,000 13,000,328,000 TOTAL 128,971,000 1,174,542,000 157,217,000 324,209,000 113,284,000 129,846,000 417,143,000 75,W,uuQ 111,770,000 84,992,000 145,305,000 137.981,000 y TREASURY DEPARTMENT WASHINGTON, D.C RELEASE A. M. NEWSPAPERS, Thursday, July 2. 1959. A-566 The Treasury Department announced last evening that the tenders for $3,000,000,000, or thereabouts, of Tax Anticipation Series 258-day Treasury bills to be dated July 1959, and to mature March 22, I960, which were offered on June 29, were opened at t Federal Reserve Banks on July 1. The details of this issue are as follows: Total applied for - #4,299,054,000 Total accepted - 3,000,328,000 (includes #327,239,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids; High Low - 97.239 Equivalent rate of discount approx. 3.853* per annum n - 97.033 n u n «t 4.l4o* « n Average - 97.080 " « " « « 4.075* « (9 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Applied for Total Accepted $ 158,271,000 1,995,727,000 173,472,000 397,009,000 120,994,000 145,566,000 549,412,000 96,495,000 128,120,000 98,527,000 152,310,000 263,151,000 $ 128,971,000 1,174,542,000 157,217,000 324,209,000 113,284,000 129,846,000 417,11*3,000 75,068,000 111,770,000 84,992,000 TOTAL $4,299,054,000 $3,000,328,000 i45,305,ooo 137i981,000 - 3- g 2gS__?EffiK>5Q_«My____C local taxing authority. _\Dr purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury "bills and govern the conditions of their issue. Copies of the circular may he obtained from any Federal Reserve Bank or Branch. - 2 - All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bill Daylight Saving of this issue, until after one-thirty o'clock p.m., Eastern/StonritaKL time, Wednesday, July 8, 1959 . Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $ 400,00CK or less without stated price from any one bidder will be accepted in full at the average price (in thre decimals) of accepted competitive bids. Payment of accepted tenders at the price offered must be made or completed at the Federal Reserve Bank in cash or other i mediately available funds on July 15, 1959 , provided, however, any qualified depositary wiH be permitted to make payment by credit in its Treasury tax and lo account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so no fied by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether Interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and los from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any - 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 $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on July 15, 1959, provided, however, any qualified depositary will be permitted to make payment by credit In its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of- its District. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills Issued hereunder are sold 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 oOois made, as ordinary gain or loss, Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. •to c^ ULEASE A. K. NEHSPAPERS, Tuesday,^ July 7, 1959. fr •• The Treasury ©apartmentarm^unc-ed laet evaning tot t h # tender© for %mo BOVJM® 01 Treasury bills, o m seriee to be_an "additional -ismm of the bills dated April 9, 1959, and- tne other aeries toto®dated- July 9, 1959, which were offered on July 2, were opeaa at the Federal Reserve Banka on; <Jt*ly 6. leader® Kere invited for H,200,000,000, or thereabout®, of 91-day hillm- BM~ tor f400,0oo,000, or thereabouts, of 182-day bills, tl details of the two aeries mem m®'-toXX®m% •• imm OP ACCEPTED CQH>EfITi?E BRSt 91»4&y Treasury- bills maturing October 8, 1959 I82~4ay Tre&imry bill© maturing Jamary 7, I960 c Price High Low .Average -^3 99*186 a/ 99.150 99.174 , Ajjprox« Iquiv. Annual Rate 3.220* 3.363$ Price 98.018 hf 97.966 ~* 97*$U .,. Ipprox. E«_aiv, Amiufel late 3.901$ 4.©23j« 3.964H a/ Excepting one tender of 1*8,000. W Excepting one tender of #5,000: Ife-jjereesit ef the anaupt of 91-day bill® bid for at tha Xm price wan accepted 8®,percent of tha a»oimt of 182-day Mils bid for at the low'frltta was accepted TOiAl* TWEES .AffLlM- FOB A¥t ACCEPTED m FEDBRAt lESlOTS DISTRICTSs pistariet ' . v * •. < . Batten- Hew York Philadelphia Clevel&sMl Richmond Atlanta Chicago §t. kouia .Minneapolis Kansas City Balla® fean Franeisc© m m , i for ,..: ' Accented Applied For Accepted I 1,393,000 594,003,000 I 1,393,000 312,003,000 6,836,000 11,846,000 2,401,000 1,760,000 25,773,000 2,615,000 _ , I 24,142,000 1,1423,628,000 27,173,000 33,536,000 9,066,000 21,302,000 157,773,000 20,308,000 8,502,000 40,964,000 14,190,000 63,0^4,000 14,142,000 845,128,000 13,473,000 33,536,000 9,066,000 21,302,000 116,773,000., 2u,3Q8,QQO S,302,000 4o.,?64,ooo 14,190,000 63,064,000 ,fl,843,94S,GOO rJl,2C»,746,0OC^/ 11,846,000 2,401,000 , I,Y6u,000 57,473,GGU .- 2,ol5,OU< * 2,?56,0OO 6.X999yt>j 3,25?,vX>u P3ll66j,uuu $.713,707,000 2,?56,ooo 6,199,000 • 3,2>9,000 . 23,166,000 fi;wG,007,000d/ Include® ^200,456,000 rwircoiapetitive:! tenders accepted at 'the average pric includes -*33, 240,000"noncompetitive tenders 'acceptt-d at the" average price ot 97.996 / pKUorr<y. y TREASURY DEPARTMENT WASHINGTON, D . C RELEASE A . M . NEWSPAPERS, Tuesday, July 7, 1959. A-565 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated April 9, 1959, and the other series to be dated July 9, 1959, which were offered on July 2, were opened at the Federal Reserve Banks on July 6. Tenders were invited for $1,200,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. Th details of the two series are as follows? RANGE OF ACCEPTED COMPETITIVE BIDS: 91-day Treasury bills maturing October 8, 1959 mm- s X 182-day Treasury bills maturing January 7, I960 t Price Approx. Equiv. t Annual Rate j Price Approx. Equiv. Annual Rate . High Low Average 99.186 a/ 99.150 ~ 99,174 3.220$ 3.363$ 3.266$ I : ; 98.028 of 97.966 "" ,97.996 3.901$ 4.023$ 3.964$ a/ Excepting one tender of f58,000 B"/ Excepting one tender of 15,000 26 percent of the amount of 91-day bills bid for at the low price was accepted 80 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AMD ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 24,142,000 1,423,628,000 27,173,000 33,536,000 9,066,000 21,302,000 157,773,000 20,308,000 8,802,000 40,964,000 14,190,000 63,064,000 TOTALS $1,843,948,000 Accepted 14,142,000 845,128,000 13,473,000 33,536,000 9,066,000 21,302,000 116,773,000 20,308,000 8,802,000 40,964,000 14,190,000 63,064,000 $1,200,748,000c/ Applied For Accepted $ 1,393,000 594,003,000 6,836,000 11,846,000 2,401,000 1,760,000 57,473,000 2,615,000 2,756,000 6,199,000 3,259,000 23,166,000 $ 1,393,000 312,003,000 6,836,000 11,846,000 2,401,000 1,760,000 25,773,000 2,615,000 2,756,000 6,199,000 3,259,000 23,166,000 1713,707,000 $4GO,007,OOOd/ c/ Includes $200,456,000 noncompetitive tenders accepted at the average price of 99.174 3/ Includes $33,240,000 noncompetitive tenders accepted at the average price of 97.996 » > TREASURY DEPARTMENT Washington STATEMENT BY DAVID. A. LINDSAY, ASSISTANT TO THE SECRETARY, BEFORE THE COMMITTEE ON WAYS AND MEANS OF THE HOUSE OF REPRESENTATIVES ON H. R. 5 10:00 A.M., JULY 7, 1959 Ue are pleased to appear before your Committee today to present the view of the Treasury Department on H. R. 5* a bill entitled "Foreign Investment Incentive Tax Act of 1959".? introduced on January 7> 1959 by Mr. Boggs. The purpose of the bill is to provide tax relief for foreign income in order to provide incentives for expansion of United States investment abroad. The need to enlist resources and talents of American enterprise in helping to improve the economies of the less developed countries is particularly important today with a hostile Communist bloc actively pressing a massive economic offensive against the free world. Secretary Dillon stated, in testimony before your Committee's Subcommittee on Foreign Trade Policy last December, that he regards the problem of achievement in freedom of higher living standards in the lesser developed countries as the primary economic and political problem of the 20th Century. He observed that it is a problem in which the interests of our Government and our business community coincide, so that a real opportunity exists for a joint effort in attacking it. A-569 - 2 - During the last decade, there has been an increasing flow of United States capital to Canada and Western Europe. Almost half of our private foreign investments are in these more developed areas. A relatively small percentage of our private investment abroad has been and is going to the less developed critical areas in Asia, the Middle East and Africa. In the light of these considerations, the Secretary of the Treasury submitted a report on H. R. 5 which was developed in cooperation with the State and Commerce Departments. The Secretary stated in this report that measures which the Treasury would support, include: (l) The deferral of tax on Income derived by a foreign business corporation which ohtains substantially all of its income from investments in one or more of the less developed areas of the free world. (2) Ordinary loss treatment for losses incurred by original investors on stock of such a foreign business corporation. (3) The early implementation, by treaty or by negotiated agreement authorized by legislation, of the principle of a credit for tax sparing in order to make it possible for American firms Investing in an underdeveloped country to benefit from the tax inducements offered by such a country to attract new capital. - 3It generally is recognized that tax incentives alone cannot successfully stimulate private investment in the critical less developed areas of the free world. There are many obstacles which impede the flow of private investment to less developed countries. These include political instability, risk of expropriation, problems of currency convertibility, inflation, in some instances high foreign tax rates, and the natural attraction of capital to areas where a profitable return is comparatively assured. We believe that some of these problems can be minimized, however, by provision for ordinary loss treatment for investment losses in the less developed areas coupled with the expansion of our investment guaranty program. Implementation of the tax sparing principle should make more effective efforts of certain countries to provide tax incentives of their own to attract new investment. Deferral of tax on profits reinvested should encourage relative permanence and expansion of the successful enterprises in such areas. H. R. 5 contains a number of provisions designed to encourage private Investment abroad. A major difference between H. R. 5 and the Treasury Department recommendations is that the tax provisions of H. R. 5 would have world-wide application outside of the United States, whereas the Treasury proposals are limited in application to the less developed areas. The substantive provisions of H- R. 5 are: Deferral of tax on foreign income for private domestic foreign business corporations; liberalization of present restrictions on tax-free transfers of property to foreign corporations; a 14 percent reduction in tax rates for foreign business corporations; modification of the foreign tax credit to include an over-all limitation wherever such limitation would be more advantageous than the per country limitation imposed by present law; a credit for taxes spared by foreign countries to attract American industries; and nonrecognition of gain on involuntary conversion of property of foreign subsidiaries. For convenience, we shall cover each of the provisions of H. R. 5 in order of appearance in the bill. Tax Deferral (Section 2) This provision would permit the creation of a special domestic corporation — referred to as a foreign business corporation — which would be entitled to tax deferral on its foreign earnings until they are repatriated. Setting aside our fiscal situation, the problem of revenue and the question of encouraging investment abroad, there is substantial merit to section 2 of H. R. 5* Under existing law, deferral of income derived abroad is now available to American companies operating through subsidiaries incorporated in foreign countries. This is because a corporation which is created under the laws of a foreign country and derives its income abroad does not fall within the scope of our tax system. A tax is paid by the domestic parent only upon dividends received from the foreign subsidiary if and when distributed. This has been a basic feature of our income tax structure since its enactment. On the other hand, domestic corporations, individual residents and most of our citizens must pay tax currently on all income, foreign and domestic alike, with provision however for tax credit against United States tax for taxes imposed by foreign countries on income derived within their borders. Under certain circumstances domestic corporations have tax advantages, as, for example, the offsetting of foreign losses against domestic income, the availability of the percentage depletion deduction, and the benefit of various tax treaties negotiated by the United States. Because American firms are able to defer United States tax by operating abroad through foreign subsidiaries, much of the private investments abroad by citizens of this country has been channeled through foreign corporations, with the exception of the extractive industries. If, for example, an American firm contemplates the acquisition of a plant in a country having a tax rate substantially lower than our corporate rate and if it expects to leave a substantial part of Its profits of its foreign plant abroad, - 6 it would ordinarily organize a foreign corporation to operate the business so as to postpone indefinitely payment of tax to the United States. In recent years a number of American firms investing abroad have done so through foreign holding companies located in a "tax haven" country. The holding company, in turn, conducts its business through foreign operating subsidiaries located in various parts of the world. This method of operation permits, for example, the transfer of earnings from a subsidiary in Western Europe to one in South America, free of United States income tax. In the absence of the intermediate holding company, the transfer of funds from one foreign subsidiary to another would ordinarily be treated as a taxable dividend to the United States parent corporation followed by a capital contribution by the parent to the second subsidiary. Section 2 of H. R. 5 would permit foreign business corporations the same latitude available to foreign holding companies to shift funds between countries or its subsidiaries with no intervening tax imposed by the United States. In this sense and also in Its application to export income, section 2 is broader than the deferral provisions contained in earlier bills, namely, H. R. 8300 in 1954 and H. R. 7725 in 1955* Although recognizing the merits of section 2 of H. R. 5, the Treasury Department nevertheless is compelled to oppose unlimited deferral at this time because of the substantial revenue ia - 7 losses involved in extending the deferral provisions to include investments in and exports to all regions of the world by American firms. While the estimates are exceedingly difficult to make, it is believed that section 2, if enacted, would involve a revenue loss ranging from $300,000,000 to $500,000,000 annually, depending upon the dividend policies followed by foreign business corporations. If export income were entirely excluded the revenue loss would be in the neighborhood of $100,000,000 a year. Revenue losses of this magnitude cannot be accepted at this time without contributing to an unsound fiscal position. If section 2 is confined to less developed areas without limitation in regard to export income, the revenue loss would still be in the order of $100,000,000. Apart from the impact on revenues, to extend deferral to export income is to grant deferral in many cases even though no significant activity is conducted abroad. Accordingly, we are compelled to recommend that export income be excluded but would be pleased to explore with the Committee, in cooperation with the Committee staffs, the feasibility of limiting the deferral provision to foreign business corporations which do not earn more than 50 percent of their gross Income from exports. Liberalization of Section 367 (Section 3) Section 3 of the bill is designed to facilitate the creation of a foreign corporation through the transfer of assets, other than - 8 - cash, which are currently in use either in the United States or abroad, without the recognition of any gain or loss upon such transfer. Under section 367 of existing law, the transfer of assets to a foreign corporation cannot be accomplished on a taxfree basis unless prior approval is obtained that the exchange does not have as one of its principal purposes the avoidance of United States tax. This provision was enacted in 1932 and according to the report of the Ways and Means Committee at that time was designed to close- "a serious loophole for avoidance of taxes". Section 3 would make section 36? inapplicable in the case of transfers of foreign business property and certain stock investments to foreign corporations. Thus, under the bill, a domestic corporation with separate foreign manufacturing subsidiaries in various countries could transfer its stock in all these companies to a foreign holding company organized in a "tax haven" country without recognition of gain. Each of the subsidiaries may have accumulated substantial earnings free of United States tax and paid little or no dividends to the American parent corporation. In the absence of a favorable ruling under section 367^ the transfer of stock of the operating companies to the foreign holding company in exchange for stock of the holding company would be a taxable exchange. -9 The Treasury would support a limited amendment to section 367 to permit tax-free transfers of foreign business property, including stock of foreign subsidiaries, to a United States foreign business corporation. Possibly a change in the advance ruling requirement might also be desirable in the case of transfers of business property from a foreign business corporation to one or more of its foreign subsidiaries if "distribution" limitations were placed on the foreign subsidiary similar to those provided in section 2 of the bill for the foreign business corporation itself. We believe that such distribution limitations would largely eliminate the present opportunities for tax avoidance in the repatriation of the earnings of a foreign subsidiary either without tax or at capital gain rates. Under this approach, loans by the foreign subsidiary to the shareholder of the foreign business corporation and certain investments by the subsidiary in the United States would be regarded as a constructive dividend distributed by the foreign business corporation. If changes such as these were made, tax avoidance opportunities available through foreign subsidiary operations would be considerably reduced and greater leeway would be justified in connection with the proposed liberalization of present restrictions on tax-free transfers of property to foreign corporations. - 10 - While consideration might be given to permitting transfer of property to other foreign corporations controlled by United States interests, if similar "distribution" safeguards were enacted, it would seem that broad liberalization in this area would tend to defeat the purpose of limiting deferral under section 2, as suggested by the Treasury, to foreign business corporations operating in the less developed areas. Reduction in Tax Rate (Section 4) Section 4 would reduce the tax on foreign income by 14 percentage points. With certain modifications, this section of the bill would apply the present Western Hemisphere trade corporation provisions of the Code on a world-wide basis. Foreign source income eligible for the reduced rate would include income from exports, royalties, and passive portfolio investments. The provision would apply equally to earnings from existing as well as new investments. An enterprise that is currently engaged in business in a foreign country and which could qualify for treatment as a "foreign business corporation" would be more likely to repatriate foreign earnings if the tax on such repatriated profits were to be at the reduced rate of 38 percent than would- be the case if the tax were continued at the 52 percent rate. The incentive to repatriate foreign income would probably have its greatest impact - 11 - in the less developed areas abroad where reinvestment of earnings is most needed but where the risk of loss is comparatively acute. The estimated revenue loss from the proposed 14 percentage point rate reduction is in the order of $200 million a year. This loss, it should be noted, would materialize without an increase in investments abroad. Because of the loss of revenue involved and because of the doubtful effect of rate reduction as an effective incentive for the expansion of private investment in the less developed areas, the Treasury Department is opposed to the enactment of Section 4 of the bill. Liberalization of the Foreign Tax Credit Limitation - (SectiQg jj Section 5 of the bill would revise the present provisions of the Code dealing with the foreign tax credit to give taxpayers the benefit of the so-called "over-all" limitation, whenever such limitation would be more advantageous than the present "per country" limitation. The new "over-all" limitation is similar to one which was in the law until 1954 but with this difference — the pre-1954 provision was operative only if it reduced the credit that was otherwise available under the application of the per country limitation while the present proposal would be operative only if it increased the credit. The per country limitation gives companies operating at a loss in some countries the right to continue to take - 12 - tax credits for the taxes paid in countries where they operate profitably without having to offset for losses in the other countries. The over-all limitation would give companies operating in countries with tax rates above the United States rates the right to offset those higher taxes against income tax in other countries where the tax rates are lower than the United States rates. The justification often given for the over-all limitation is that foreign income should be treated as a whole. So viewed, a consistent approach would require the elimination of the per country limitation. It should be noted, however, that taxpayers conducting their operations abroad through foreign holding companies, average the foreign tax rates applied to the distributed earnings of their subsidiaries, and are in effect using only the over-all limitation. The proposed over-all limitation might provide some encouragement to investment In less developed areas abroad where some of the countries most in need of capital impose taxes at rates that are higher than our 52 percent corporate rate. On the other hand, if section 5 were enacted, the immediate revenue loss attributable to existing United States private investment abroad might well be substantial. 24 - 13 Our estimates, based on the year 1955, are that the revenue loss under section 5 would amount to approximately $45 million. With respect to individual companies, the effect of such an amendment would vary from year to year. We referred in our report to a revenue loss of $19 million in 1955 for one company. We are informed that there would be no loss for that company today; in recent years the existing per country limitation has been more favorable to that company than the over-all limitation. There may not be a substantial difference in revenue impact in comparing the over-all limitation on a consistent basis with the per country limitation on a consistent basis, but there is revenue loss where each company may use the more favorable limitation each year regardless of consistency. Accordingly, we oppose adoption of section 5 at this time. In our report of May 6, we referred to possible amendments to section 5 which we believe would considerably reduce the impact on the revenue. Such amendments should be adopted only if on thorough analysis they are deemed fair and appropriate. We should like to explore this further with the Committee and the Committee staffs. Tax Sparing by Underdeveloped Countries (Section 6) Under section 6 of the bill, a taxpayer deriving income from abroad would be allowed a credit for taxes waived by a foreign country as an inducement to render services or to engage in business in that country. The principle involved in this provision is one to which the Treasury Department fully subscribes, and which is incorporated in a number of tax conventions that are currently in the process of negotiation. Tax treaties with tax sparing provisions are currently in an advanced state with six countries located in Latin America, the Middle East and Asia. Preliminary negotiations have been held with four other countries in Latin America and Asia. Under existing law, a reduction in foreign tax as an incentive to induce new investment may result in a reduced foreign tax credit and a commensurate increase in United States tax. The tax incentive measures of less developed countries may thus be made ineffective by the provisions of our own law. By giving recognition to such tax incentive laws, the tax treaty program can, within appropriate limitations, remove this consequence of existing law and help promote a desirable tax climate in other ways. Our experience thus far indicates that this policy has stimulated greatly interest among underdeveloped countries in tax treaties to eliminate double taxation and other tax obstacles to - 15 - international trade and investment. This tax credit device, utilized in connection with the negotiation of treaties would, we believe, produce more productive results than if handled in a unilateral statutory provision such as is incorporated in section 6. Nonrecognition of Gain or Involuntary Conversion "of Property of a Foreign Subsidiary (Section f) Section 7 of the bill would permit a domestic parent corporation that takes out insurance in this country on the property of a foreign subsidiary to exclude from its taxable income the insurance proceeds received upon the destruction or other involuntary conversion of the subsidiary's property, provided the insurance money is reinvested abroad in property similar or related in use to the converted property. Under existing law taxable gain is realized upon receipt of insurance proceeds if the recipient does not also own the property destroyed or otherwise converted. It has been suggested that section 7 would encourage investment abroad in countries where it is difficult or impossible for a subsidiary corporation to secure adequate insurance coverage by permitting the domestic parent to carry the necessary insurance without adverse tax consequence. If it is true that adequate insurance protection cannot be obtained by foreign subsidiaries, a change in our tax law along the lines proposed in section 7 ^ay merit consideration. A change in existing law seems unwarranted - 16 unless adequate information is developed as to the countries involved and the nature of the restrictions which result in the unavailability of insurance protection. It is our hope that witnesses from the business community will, either during the course of these hearings or shortly thereafter, come forth with specific information indicating the extent of and the reasons underlying the claimed inadequacy of insurance coverage abroad. Other Recommendations There are other provisions In the Code dealing with foreign income where a modification would be desirable. Several of these have been described in the Secretary's letter of May 6, and I should like here merely to mention them briefly. Two deal with the filing of information returns with respect to the formation or reorganization of foreign corporations and with respect to the ownership and changes in ownership of foreign personal holding companies. Our suggestions would simplify and improve the effectiveness of the information returns currently required. Another suggestion would correct what seems to be an error in the 1954 redrafting of the provisions dealing with foreign personal holding companies. Under some circumstances the aggregate taxes imposed with respect to the income of a foreign personal holding company may equal 115 percent of its income. We doubt that this was intended by the Congress, and suggest that it be modified. - 17 In conclusion, the Treasury Department favors adoption of legislation which would, in fact, promote the flow of United States investment into the less developed regions of the free world. We believe that ordinary loss treatment for investment losses in lesser developed countries, together with tax deferral of reinvested profits and early implementation of the tax sparing principle should help to encourage United States firms to operate in less developed areas. - 3Sg___XJQC3QSa__X_0_g__ 29 from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the teiros 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. - i. - mvm:o:mmrm*:t). decimals, e. g., 99.925. Fractions may not be used. It is urged that>lenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action In any such respect shall be final. Subject t these reservations, noncompetitive tenders for $ 200,000 or less for the addition bills dated April 16, 1959 , ( 91 days remaining until maturity date on October 15, 1959 ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respec- tive issues. Settlement for accepted tenders In accordance with the bids must be made or completed at the Federal Reserve Bank on July 16, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills mat ing July 16, 1959 • Cash and exchange tenders will receive equal treatment. S3 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 Q1 TREASURY DEFART2IEI.T? Washington RELEASE A. M. NEWSPAPERS, Thursday, July 9, 1959 !_he Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of & 1.600.000,000 y or thereabouts, fo cash and in exchange for Treasury bills maturing July 16. 1959 y ^ the araoun t of $1,600,361,000 . as follows: 91 -day bills (to maturity date) to be issued July 16, 1959 , in the amount of $1,200,000,000 , or thereabouts, representing an additional amount of bills dated April 16, 1959 , and to mature October 15, 1959 , originally issued in the sp^ amount of $400,002,000 , the additional and original bills i$_k_q_ to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated 5opB5" £_** July l6 5 1959 SpEtj y and to mature January 14, I960 £__* The bills of both series will he issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face a will be payable without interest. They will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will he received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/steCDEfcaxat time, Monday, July 13, 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 th price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT nv.tm'ftinnnm»minamui.jK.i»ma.% <'| ««. i M M f | i w « w M i W M i — M WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, July 9, 1959. A-570 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 July 16, 1959, in the amount of $1,600,361,000, as follows: 91-day bills (to maturity date) to be issued July 16, 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated April 16, 1959, and to mature October 15,1959, originally issued in the amount of $400,002,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated July 16, 1959, and to mature January 14, i960. 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 u_L._to_the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving time, Monday, July 13, 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 blll3 applied for/ unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 ~ Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated April 16, 1959, (91 days remaining until maturity date on October 15, 1959) and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 16, 1959* in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 16, 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 hereundei 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 during0O0the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions Federal of theirReserve Issue. Bank Copies or Branch. of the circular may be obtained from any 33, 1EXMSI A. H. ISfSPAPStS, the fraamiry fJapartmaiit mtmmmm4 last monim ife&t the teadera..tor.,M9\A»J9w9m!Ju. or thereabeuta, of 3#@-day treasury bills to b® data*. * O y 15, •• X9*99 **& *? mamrm my 15, I960, whish ware ©ffarad on ^ l y 6, ware opanad at ®m *Iso**a ~**m*rwm Banks ©i «fttly«. ftso «§®tails of this issraa ara as follows g fatal allied far - 13,172,602*000 fetal aeeepted - i,Q®O,O|7,0OO Clsaiudefi $186,342,000 entered o a a moe^ipatitiva basis aaA accepted in ftill at the a¥»rag®:^ic@"AahoWa'"be.l9w) Bang® ©f a*raapfce4 e«patitlv@ bldat li^tIjm (feeeaptlag fArm tmmklmm totaling 1610,000) - 95.58© Iqulwlast rmtm of fiseona* approx. *4.3481, per,annas - 95.100 » * •" * *:_ 4 J 2 0 C « -• • tango - 95.193 m m • > ' 'n l,* 4.?aaJlc* . " (?9 pareant of tlio aaowit t*M for at too %m pries was aaecgrttd) Federal Rooorvo district Boston mm fork I%ila4©__£iia Clavalasi Eietwos^Atlanta Chicago St. |0ula Minneapolis &.-"t*x City Dallas San Framise© mmx jfo^ai r AX» J C y# fna*rt,^-,^ Acaaptad - 1 i • ^BB,109,ob 108,835,000 l,73§,?y^ooo 103,120,000 180,940,000 54,O5O,OQO 99,0?i,000 421,795,000 57,45^,000 4a,703,000 62,342,000 71,008,QQQ 225,747,000 • T!W»^eal3*i72;6O2JIO0Q 920, §4^000 .66)330*000 i59,64a,ooQ 3-93,lSl*<W 275,2*0,$$ 48,826,000 :48,&3.,0OG 65_o9^odd 100,697,000 12,000,057,000 TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, mursday, July 9, 1959. A ^ V ^ X ^?1 The Treasury Department announced last evening that the tenders for $2,000,000,000 >r thereabouts, of 366-day Treasury bills to be dated July 15, 1959, and to mature July 15, I960, which were offered on July 6, were opened at the Federal Reserve Ba July 8. The details of this issue are as follows: Total applied for - $3,172,602,000 Total accepted - 2,000,057,000 (includes $186,342,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: (Excepting five tenders totaling $610,000) *?igh * 95.580 Equivalent rate of discount approx. 4.348$ per annum Lw - 95.100 « w » « it U.820^ « Average - 95.193 tt »• » " " »• 4.728$ '• « (79 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Applied for Accepted Boston $ 108,819,000 $ 88,109,000 Sf?,*^ ^ Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL $3,172,602,000 $2,000,057,000 1,738,743,000 103,120,000 180,948,000 54,050,000 99,071,000 421,795,000 57,456,000 48,703,000 62,342,000 71,808,000 225,747,000 920,243,000 86,620,000 159,648,000 52,050,000 93,151,000 275,270,000 48,826,000 48,^03,000 61,842,000 65,098,000 100,697,000 -';£ A. H. BEWSHLFSBS* Tuesday, duly 14, 1959. The Treasury Department announced last evening that the tenders for \mo series of Treasury bills, on® sarias to b© an addltioml issue of the bills dated April 16, 1959, and the other series to be dated duly 16, 1959, which were offered on July 9, were opened at the Federal Reserve Banks on duly 13- Tenders were invited for $1,200,050,000, or thereabouts, of 91-4ay bills and tor 1400,000,000, or thereabouts, of 182-day bills, the details of the two series are as follows: 182-day Treasury bills 91-day Treasury bills B U C K OF ACCEPTED maturing January 14, I960 mataring Qetober 15, 1959 GOIOTTITIVB BIDS* i¥ice Low Average 99.155 mf 99.117 99.140 Approx. Squiv. Annual Rate Approx. Equiv. Prioe Annual Bate 3.343$ 3.493$ 3.401$ 97.978 4.000$ 97.960 97.963 4.035$ 4.029$ a/ Excepting one tender of 150,000 00 percent of the amount of 91-day bills bid for at the low prlee was accepted 62 percent of the amount of 182-day bills bid for at tha low price waa accepted TOTAL TENDERS APPLIED FOR AHD ACCEPTED IX FEDERAL HESER?E DISTRICTS$ : Applied for District Applied For Boston lew fork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 26,664,000 1,385*440,000 28,078*000 39,078,000 23,629*000 23,183,000 172,050,000 23,497,000 8,969,000 36,165,000 20,150,000 76,142,000 $ TOTALS 11,863,045,000 H,2OO,00O,000b/ 16,664,,000 001,415,,000 18,078;,000 39,078,,000 23*629,,000 23,163,,000 313,050,,000 23,497,,000 8,969;,000 36,165,,000 20,150,,000 76,142,,000 « s $ 6,239,000 s 688,675*000 J 7,057,000 i 18,602,000 J 970,000 : 3,307,000 3 100,640,000 3,915,000 s t 2,422*000 : 7,005,000 2,374*000 s : 65,443,000 s 1906,649,000 Accepted $ 5,762,000 261,236,000 1,657,000 11,362,000 951*000 2,680,000 54,095*000 3,515,000 2,422,000 4,846,000 2,374,000 49,922,000 1401,022,000c/ bf Includes #229,025,000 noncompetitive tenders accepted at the average price of 99.14 e/ Includes $42,502,000 noncompetitive tenders accepted at the average price of 97.963 fJr- TREASURY DEPARTMENT WASHINGTON, D.C REIEASE A. M. NEWSPAPERS, Tuesday, July 14, 1959. A-572 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated April 16, 1959, and the other series to be dated July 16, 1959, which were offered on July 9, were opened at the Federal Reserve Banks on July 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 follows: RANGE OF ACCEPTED COMPETITIVE BIDS: Price High Low Average 182-day Treasury bills maturing January 14, I960 91-day Treasury bills maturing October 15, 1959 99.1^ a/ 99.117 " 99.140 Approx. Equiv. Annual Rate Price 3.343$ 3.493$ 3.401$ 97,978 97.960 97.963 Approx. Equiv. Annual Rate 4.00Q$ 4.035$ 4.029$ a/ Excepting one tender of $50,000 60 percent of the amount of 91-day bills bid for at the low price was accepted 62 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 t 26,664,000 1,385,44o,ooo 28,078,000 39,078,000 23,629,000 23,183,000 172,050,000 23,497,000 8,969,000 36,165,000 20,150,000 76,142,000 $1,863,045,000 TOTALS Accepted 16,664,000 801,415,000 18,078,000 39,078,000 23,629,000 23,163,000 113,050,000 23,497,000 8,969,000 36,165,000 20,150,000 000 : : : : $1,200,000,000b/ Applied For Accepted $ 6,239,000 688,675,000 7,057,000 18,602,000 970,000 3,307,000 100,640,000 3,915,000 2,422,000 7,005,000 2,374,000 65,4^3,000 $ 5,762,000 261,236,000 1,657,000 11,362,000 951,000 2,880,000 54,095,000 3,515,000 2,422,000 4,846,000 2,374,000 49,922,000 $906,649,000 $401,022,000c/ b/ Includes $229,025,000 noncompetitive tenders accepted at the average price of 99.140 c/ Includes $42,502,000 noncompetitive tenders accepted at the average price of 97.963 37 <y i *my x9 ifff Tfe* following trautisactio&is mm mad© In direct and guaranteed securities of the CJovexm^ai for fr^a^ury imtfttaitttii aid otter acccuats during the m*mth of dtes 1959J JJilSfl *«««»•«>. *••.#•**••»«••*.•».****»*».** *••*•******** »WmMM/lmm%\M.mmmWn*i W£ M fMiUHl ....; ...... „ ftlflMIMi TREASURY DEPARTMENT WASHINGTON, D.C IMMEDIATE RELEASE, Wednesday, July 15, 1959 A-573 During June 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 $9,869,500. oOo - 3 - ww MAwmeWw*.<•. w m w from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2i! ",' y decimals, e. g.. 99.925. Fractions nay not be used. It is urged that tenders be made on the printed forms and forvarded in the special envelopes which will be supplied by Federal Reserve Banks or Breeches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their cwn account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final* Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona bills dated April 25, 1959 , ( 91 days remaining until maturity date on October 22, 1959 ) and noncompetitive tenders for $100,000 or less for the PS? &&* 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 23, 1959 , in cash or ^ i^bc other immediately available funds or in a like face amount of Treasury bills maturing July 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 SKfe&s&xm .* ^ TREASURY DEPARTttEliT Washington RELEASE A. M. NEWSPAPERS, Thursday, July 16, 1959 X _ C^ /] / . The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1.400.000.000 y Pr thereabouts, fo cash and in exchange for Treasury bills maturing July 23. 1959 y in tne amount of $1,400,956,000 , as follows: —m 91 -day bills (to maturity date) to be issued July 25. 1959 y in the amount of $ 1,000,000,000- y or thereabouts, representing an additional amount of bills dated April 25. 1959 y and to mature October 22. 1959 » originally issued in the amount of $ 400,070,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated X>fck$ j&£$ July 25, 1959 , and to mature January 21, 1960 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face a will be payable without interest. They will be Issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern/4B_s_m_m_i time, Monday, July 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 th price offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, Thursday, July 16, 1959 A-574 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 July 23, 1959* in the amount of $1,400,956,000, as follows: 91 -day bills (to maturity date) to be issued July 23, 1959, in the amount of $1 000,000,000, or thereabouts, representing an additional amount of bills dated April 23, 1959. and to mature October 22, 1959, originally issued in the amount of $400,070,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated July 23, 1959. and to mature January 21, I960. 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, July 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 oi* ? percent of the face amount of Treasury bills applied for, unloim the tenders are accompanied by an exprests guaranty of payment by an Incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $ 200,000or less for the additional bills dated April 23, 1959, (91 days remaining until maturity date on October 22, 1959) and noncompetitive tenders for $ 100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 23, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 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 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) Issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or 0O0 loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions Federal of theirReserve issue. Bank Copies or Branch. of the circular may be obtained from any TREASURY DEPARTMENT Washington, D. C. A-575 IMMEDIATE BSLEASS Thursdayr July 16, 1959 P__*I_1NARY DATA ON IMPORT3 F A CONSUMPTION OF DNMANUPACTUi^D LEAD AND ZINC; CHAHG3ABLB TO THE O.U0TAS ESTABLISHED PRELIMINARY DATA ON ^ ^ ^ ^ PROCLAMATION NO. 3257 Of SEPTEMBER 22, 19S» QUARTERLY QUOTA PERIOD April 1, 1?59 - «&»» 30> 195? IMPORTS April 1, 1959 - *»» 30# l?59 ITEM 393 ITEM 392 a Lead bullion or base bullion, t load In pigs and bars, load t _«„,»,, • 7ina la blocks. pigs» or slabs; Lead-boaring ores, fluo dust,, dross, r j j U l - d lead, scrap , Zinc- sar n f *,£«£££'• and aattes « lead, _ ant isonial U a d , anti-^ . exceptoror W r r3# « « of ;°lino ;lna * : aonial scrap load, typo aatal, t i all alloys or combinations of : j load n.s.p»f« *:Qjartarly Quota :_aartarly Quota tQuartarly Quota laports Imports i Dutiable Zins Imports : Dutiablt Lead t Dutiable Lead B Pounds ' " (Pounds) (Pounds) ITEM 391 Country of Production Australia 10,080,000 10,080,000 ITEM 394 t g ? J j % T ^ Z > , fit i ionly onlyto tobo bsreaanufactursd, reaanufactursd,zino s dross, and zino skiamlngs • auartsrly Quota : By Welj&t (Pounds) Imports 23,680,000 23,680,046 5,440,000 5,440,000 7,520,000 7,520,000 37,840,000 37,840,000 3,600,000 3,600,000 Belgian Congo Belgium and Luxemburg (total) Bolivia 5,040,000 5,040,000 Canada. 13,440,000 13,440,000 15,920,000 15,920,000 66,480,000 66,430,000 Italy Moxioo Poru 16,160,000 16,160,000 Dna So. Afrioa 14,680,000 14,880,000 Yugoslavia All other foroigi countries (total) 6,560,000 2,501,807 36,880,000 36,880,000 70,480,000 70,480,000 6,320,000 6,320,000 12,880,000 12,880,000 35,120,000 35,120,000 3,760,000 3,760,000 15,760,000 15,760,000 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 44 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE A-575 Thursday, July 16, 1959 PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UNL!ANU?ACTU?3D LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO, 3257 0? SEPTEMBER 22, 1958 SJARTERLY C0OTA PERIOD - April 1, 1959 - June 30, 1959 IMPORTS - April 1, 1959 - June 3°# 199? rra£ 39* ITEM 393 ITEM 392 t i Lead bullion or basa bullion, I laad in pigs and bars, lead Zino-baaring ors3 of all kinds,: Zinc la blocks, ?izs, or ilaas; Lead-boaring oraa, flu* dust,J: dross, roslaisad load, lead, antisonial load, scrap aarti- : except pyritas containing not : old and wora-cut zicc, fit and aattes : only to bs reaanufaotarsd, zinc cvsr 3 ^ ot * i n 0 : aoni&l scrap load, typs satal, : dross, and zinc skl^clnga s all alloys or combinations of : * laad n.s.p.f. t jQuartsrly Quota :j_aartarly _aota tOartarly _aota Oiart^rly Quota "Lzz orts Inserts t B7 freight _=n>art3 : Dutiable Zinc Dutiibls Laad t Dutlabla Lead Iaports (Pounds) (Pounds) (Pounds' "(pounds) ITEM 391 Country of Produotion Australia 10,080,000 10,080,000 23,680,000 23,680,046 5,440,000 Belgian Congo Belgium and Luxemburg (total) Bolivia Canada 5,040,000 5,040,000 13,440,000 13,440,000 15,320,000 15,920,000 66,430,000 66,430,000 Italy M*xico Peru 16,160*000 16,160,000 Un« So. Afrioa 14,880,000 14,880,000 Yugoslovia All other forsign oountries (total) 6,_60,000 2,501,807 5,44U,C^C 7,520,000 7,520,000 37,840,000 37,840,0CC 3,600,000 3,6cc,coo 36,880,000 36,880,000 70,480,000 70,480,000 6,320,000 6,320,oco 12,830,000 12,8SC,000 35,120,000 35,150,000 3,760,000 3,7&,cco 15,760,000 15,760,000 6,030,000 6,080,000 17,840,000 17,840,000 6,0.0,000 6,C30,oco TREASURY DEPARTMENT Washington, D* 0. 2s A-576 IMMEDIATE RELEASE Thursday, July 16, 1959 ______ __.0M»«« —ss-srrsy.-SMWS?*• - - "* mamm QUARTERLY QUOTA PERIOD - July 1, 1959 - September 3°* 1959 IMPORTS - JUly 1, 1959 - July 4, 1959 ITEM 394 ITEM 393 ITEM ??2 i T'Leaa bullion or base bullion, I lead in pigs and bars, lead t v__„<„_ __•- of all kinds, s Zino la blooks, pigs, or slabsi Uad-b.arlag .res, flu. tat.. * . » , rMUl-4 Uj*. « £ ; £ ^ f ^ n ^ n ^ * '. dd » d - — « » J t - J « ITEM 391 Country of production Australia f j all alloys or combinations of t j load n«s_»p»f« * ——• : Quarterly Quota IteZZZrTFo^ tGuartarly Quota Imports layts i Dutiable Zinc -r ^ S - K I . t.a?4 Imports : ltotl____ L Ls«*^ "~" " " " " " " (Pounds) ir (pounds) 178,289 10,080,000 6,787,969* 23,680,000 bV WW m mtmmmm.mm.-m'- r dross, and zino skismlngs : Quarterly Quota t By Weight (Pounds) Imports - 5,440,000 - 7,520,000 4,109,352* 37,840,000 1,872,185 3,600,000 3,600,000 299,925 Belgian Congo Belgium and Luxemburg (total) Bolivia 5,040,000 3,736,510* Canada 13,440,000 6,935,341 15,920,000 650,176 66,480,000 13,970,421 m Italy 725,035 70,480,000 3,140,578 6,320,000 36,880,000 19,763 35,120,000 9,379,737 3,760,000 12,880,000 - 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 Mexico Peru 16,160*000 9,442,646 On. So. Afrioa 14,880,000 12,830,532 15,760,000 Yugoslovia All other foreiffi countries (total) 6,56*0,000 * Imports as of Julyl4, 1959 56,397 6,080,000 TREASURY DEPARTMENT Washington, D. C« IMKSDIATE RELEASE -jro A-576 Thursday, July 16, 1959 PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? DSMANDPACTUiSD LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0. SEPTEMBER 22, 1358 QUARTERLY OBOTA PERIOD - July 1, 1959 - September 30, 1959 IMPORTS • July 1, 1959 - July 4, 1959 ITEM 391 ITEM 392 V Lead bullion or base bullion, i 1 lead in pigs and bars, lead t Lead-boaring ores, flua dust,t dross, re-slalsad lead, scrap 8 and sattes s lead, antiisoaial load, &ntts : aonisl scrap load, typs aatal, s J all alloys or combinations of jsGiartarly Quota load rus.p.f, s Quarterly teiata t Dutiable Lead laports t Dutl^bls Laad lBpart3 " (Pounds)"" * '"'(Pcunds J* ITEM 393 ITEM 394 f Country of Production Australia 10,030,000 6,737,963* 23,680,000 s s : ZIno-baaring orss of all kinds,? Zino ia blocks, pigs, or slabs; s except pyrites containlag- not J old and ^ora-out zinc, fit : ovsr 3^ of zine I only to bs reaanufactur«d, zinc 1 s dross, and zinc skinnings 1sQaartarly feiota Quarterly C£iQ"ta t Dutiable Zinc By slight Imports | laports (Pounds)' ^ p!0'\__»ci w y 178,289 Belgian Congo 5,440,000 Belgium and Luxemburg (total) 7,520,000 4,109,352* 37,840,000 1,372,135 3,600,000 3,6cc,oco 299,925 Bolivia 5,040,000 3,736,510* Canada 13,440,000 6,935,341 15,920,000 650,176 >,43Q,000 13,970,421 Italy m Msxico 36,880,000 725,035 70,480,000 3,140,578 6,320,000 12,880,000 19,763 35,120,000 9,379,737 3,760,000 Peru 16,160*000 9,442,646 Un. So. Afrioa 14,880,000 12,830,532 1 Yugoslovia All othar foreign oountriss (total) 6,560,000 • Imports as of Julyl4, 1959 15,760,000 56,397 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,COO to UN 0S oj vr\ +> O « M r-ICNJ H 2 rt UN CN * • « I I I I I I I UN H m\ 5 3 J* a*Ti CM 0) O CO -P xi *M «J d) O P J3 O J3H all «} •p <A-P ono &q H CM 1 C*- | ir\ O fH COo» o\ rH UN <t r» F-NO CN I I II -4" O UN O-C-00 m\ m\ m\ CM -d" CM C\i H rA CNt» ' CO CO UN CM to o o UN 3* o oo oo oo o p CO m -P <v UN C*N I t I I I O U> & CN *« R O-OOC~-O«0OUNCMUN-4;C>C*N ir\c>cM<N}-d-oo»r\c«NCMc*N-4'CMv£) -4-NO-TvOCMC*NUNifNC<\iHUNC*NCM .C . --C O v O v O C<N C M > O to -d/CO H _: r-i • c- CM CM CVCM vO vO -4- CN -i en CN CM CM o CNOs-tf-© Oi vO N O CN o WNUN I rlO(f| <-i > > $ rt CM H •P O ' P* HP,!? 1 co^ 61 .g« »• T3 «aj X\ o § «H f£) •• o» .. a 9 toco c O 8 O •ft W o la 9« ** Xi 0) Q> (0 -P •H CO <0 T> d o o a> i_ p x\_» (0 "4 %? P •as pOliiPQa »T) O fx? 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O 9 . =d § §O n td Ct) CO •3 o •as S P. OJ • • 9 O o • a s « • « H •tf*3 3-2 5-§ » e e _ cd rd p p cd o •H 43 P To c3 CJ P, cd 6 rd P cd •H P 0) P P. CO >S O ( x j O C _ > M rt pofema P. -2- Commodity Period and Quantity Unit ©f Quantity Imports as of Jl&LkxJml absolute Quotas: > e«nuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter)......, 12 mos. from August 1, 1958 1,709,000 Pound 1,532,62 Gutter substitues, including butter oil, containing i+5% or more butterfat................. Calendar Year 1,200,000 Pound Quota fill 16,633,^91 2,231,680 702,000 Pound Pound Pound 13,463,9'J Quota fil Quota fH Fung Oil... Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries * Imports through July 13 • TREASURY D^ARTMMT Washington, D. C. CI <J J. IMMEDIATE RELEASE July 26. 1959. Thursday A-571S The Bureau of Customs announced today preliminary figures showing the imports for consumption of the commodities listed below within quota limitations from the beginning >f the quota periods to July 4, 1959, inclusive, as follows: Quantity Unit of Quantity Jream, fresh or sour...... Calendar Year 1,500,000 Gallon fhole milk, fresh or sour..... Calendar Year 3,000,000 Gallon Commodity Period and 'ariff-Rate Quotas: lattle, 700 lbs* or more each (other than dairy cows).•••••••••• April 1, 1959 June 30, 1959 Ju0y*l, 1959 Sept. 30, 1959 120,000 Head 120,000 Head lattle, less than 200 lbs. each... 12 mos. from April 1, 1959 200,000 Head ? ish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish......... Calendar Year 36,919,874 Pound tana fish. •••••••••••••••••• Calendar Year 52,372,574 Pound finite or Irish potatoes: Certified seed Other 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 5,000,000 Pound 80,000,000 Pound 13,500,000 Pound 350,000 Pound Falnuts.•••••••••••••••••••••••••• Calendar Year >eanut Oil...... ••••••••••••• 12 mos. from July 1, 1959 foolen fabrics.•••••••••••••••••••. Calendar Year roolen fabrics (Presidential Proclamation 3285 - TD 54845) 7 May 19 - Dec. 31, 1959 Imports for assumption at the quota rate are limited to 27,689,905 pounds during the first nine months of the calendar year. (continued) TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE July 16. 1959 . Thursday SO A-57r6 . The Bureau of Customs announced today preliminary figures showing the imports for lsuraption of the commodities listed below within quota limitations from the beginning the quota periods to July 4, 3 959, inclusive, as follows: Commodity Period and Quantity Unit of Quantity Imports as of Ju2zJu222 riff-Rate Quotas: earn, fresh or sour * Calendar Year 1,500,000 Gallon 74 96 3le milk, fresh or sour..,. Calendar Year 3,000,000 Gallon ttle, 700 lbs. or more each )ther than dairy cows)........... April 1, 1959 June 30, 1959 July 1, 1959 Sept. 30, 1959 120,000 Head 64,691 120,000 Head 997 :tle, less than 200 lbs. each.... 12 mos. from April 1, 1959 200,000 Head 25,580 Pound 26,992,914 3h, fresh or frozen, filleted, be, cod, haddock, h&ke, pol)ck, cusk, and rosefish Calendar Year 36,919,874 21,977,235 ia fish Calendar Year 52,372,574 Pound Ite or Irish potatoes: jrtified seed -her 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 79,208,750 16,626,795 2,506,424 Lnuts Calendar Year 5,000,000 Pound mat Oil 12 mos. from July 1, 1959 80,000,000 Pound Quota fillc >len fabrics Calendar Year 13,500,000 Pound »len fabrics (Presidential •oclamation 3285 - TD 54845)..... May 19 - Dec. 31, 1959 350,000 Pound 241,780 Imports for consumption at the quota rate are limited to 27,689,905 pounds during the first nine months of the calendar year. (continued) ~2~ Period and ________________ Commodity Quantity : : : Unit of Quantity Imports as of iHi£AJ_ solute Quotas: tanuts, shelled, unshelled, lanched, salted, prepared, or reserved (incl. roasted pea.uts but not peanut butter)....... 12 mos. from August 1, 1958 1,709,000 Pound 1,532,62 .tter substitues, including •utter oil, containing 45$ •r more butterfat....99. 9*. 0. 1,200,000 Pound Quota fill 16,633,591 2,231,680 702,000 Pound Pound Pound 13,463,971 Quota fil Quota fil Jig UJ-JL. .....Om. ...... *!.»«• ».*«•»...«» Imports through July 13. Calendar Year Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE July 16. 1959ft 'flrarsday A-57f The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to July 4, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: : Unit : Imports Established Annual . of : as of Quota Quantity : Quantity : July 4. 1959 Commodity Buttons ••••••••• • 765,000 174,342 Gross Cigars 180,000,000 Number Coconut oil •• • 403,200,000 Pound 68,105,717 Cordage ............... 6,000,000 Pound 2,587,327 (Refined Sugars (Unrefined. ••••••• Pound Tobacco 5,850,000 * 2,363,869 25,502,000* 1, 904, 000,000 1,025,648,000* Pound Information furnished by Department of Agriculture. 4,739,933 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE July 16, 1959^ Thursday A-579 The Bureau of Customs announced today the following preliminary figures shovdng the imports for consumption from January 1, 1959, to July 4, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: Commodity : : Unit : Imports : Established Annual . of 5 as of : Quota Quantity : Quantity : July 4. 1959 Buttons 765,000 Gross 174,342 Cigars 180,000,000 Number 2,363,869 Coconut oil 403,200,000 Pound 68,105,717 Cordage * 6,000,000 Pound 2,587,327 (Refined 25,502,000* Sugars (Unrefined 1,904,000,000 Pound 1,025,648, 000* Tobacco 5,850,000 Pound 4,739,933 * Information furnished by Department of Agriculture. STATUTORY DEBT LIMITATION AS OF June 30, 1959 t^^VS^™" WaaUagum. _Jri£_l*_iim Sectioa 21 of Second Liberty Bond Act, as emended on June 30, 1959 .provides that the face amount j^^gJ^J §SM under authority of that Act, and the face amount of obligaoons guaranteed as a> principal . ^ o f 0 1 * " * ' ' L F h . the aggregate (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not " « S e l T o i t l i « ^ e c 5 o n $285,000,000,000 (Act of June 30, 1959, U.S.C., title 31, Sec. 757b), outstanding at any one £ m e . For ^ ^ ^ " t b e optic. the current redemption value of any obligation issued on a discount basis ^ * "F^gf*}? Z^'S^^laFmSZ of the holder s h a F b e considered as its face amount." The Act of February 26, 1958, (P.L. 85- 336 J5th Congress) P J ° ™ £ * that during the period beginning on February 26, 1958 and ending June 30, 1 9 5 % .the ^ * « ^ ^ ^ J j * sentence of section 21 ($285,000,000,000 as of June 30. 1959) shall be temporarily increased by $5.OOO.OUU.UW. The following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation : . Total face amount that may be outstanding at any one time $^yU ,U U U , UUU ,UUU Outstanding Obligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills .... .„ $32,017,368,000 Certificates of indebtedness............... Treasury notes....... . 33,8 4 3.030 ,000 27.314.097.000 $ 93,174,4-95,000 BondsTreasury .__... ' Savings (current rederop. value) .—.. Depositary. .. Investment series .„ .__ „_.„_„.._ Special FundsCertificates of indebtedness Treasury notes..Treasury bonds Total interest-bearing „. 182,59^ , 500 8.365.265.000 Bearing no interest: United States Savings Stamps.............. Excess profits tax refund bonds ._....„. Special notes of the United States: Internat'l Monetary F u n d series .«._.. 14-3,853,436,4-29 8,072,108,000 16,626,4-13,000 —.—. .. 2 0 , 0 5 7 , 1 1 0 , 0 0 0 ...... „„_......„...... — Matured, interest-ceased —................. Total ._ 84,803,019,850 5 0 1 5 0 2 , 557 , 0 7 9 ~—. 44.755.631.000 281,783,562,4-29 ..—.—.-.-.—.... 473 , 524,547 50,275,899 Qnr£,\JOj 1,979,250,000 - 2.030.367.964 - _ - 284,287,454,940 Guaranteed obligations (not held by Treasury): In t ere st-be ar ing: Debentures: F . H . A 110,429,100 111,019,150 Matured, interest-ceased.. 590,050 Grand total outstanding ._ , _.._ „ Balance face amount of obligations issuable under above authority _ , ..„. 284,398,474,090 5,601,525,910 June 30 1959 Reconcilement with Statement of the Public Debt .„._7„„...^7-»..r:.<.^.<. (Daily Statement of the United States Treasury, «JS3!L.«^.f.-."?:!?J?5! (Date) (Date) J OutstandingTotal gross public debt „.... .._ „„..„ ...... _.. Guaranteed obligations not owned by the Treasury. . . „ ............ Total gross public debt and guaranteed obligations. » -. D e d u c t - other outstanding public debt obligations not subject to debt limitation..,. 284,705,907,078 1 1 1 . 0 1 9 .150_ 284,8l6,926,228 418,4^2.133 284,398,474,090 S T A T U T O R Y D E B T LIMITATION TREASURY DEPARTMENT ,. _-Fiscal 8ervice ACHF June 30f 1 9 6 9 — ~. , 1 r Washington, J u l y I D , 1 9 5 9 Section 21 of Second Liberty Bond Act, as amended on June 30, 1959» provides that the face amount of obligations issued under authority of that Act. and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury\ "shall not exceed in the aggregate 1285,000,000,000 (Act of June 30, 1959, U.S.C., title 31, Sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder shall ^be considered as its face amount.'* The Act of February 26, 1958, (P.L. 85-336 85th Congress) provides that during the period beginning on February 26, 1958 and ending June 30, 1959, the above limitation set forth in the first sentence of section 21 ($285,000,000,000 as of June 30. 1959) shall be temporarily increased by $5,000,000,000* The following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation : Total face amount that m a y be outstanding at any one time $290,000,000,000 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills $32,017,368,000 Certificates of indebtedness............... Treasury notes *„.... BondsTreasury ._ * Savings (current redemp. value) Depositary. Investment series Special FundsCertificates of indebtedness Treasury notes. Treasury bonds Total interest-bearing Matured,.interest-ceased Bearing no interest: United States Savings Stamps Excess profits tax refund bonds Special notes of the United States: Internat'l Monetary Fund series Total , 33,843,030,000 27.314*097.000 84,803,019,850 50,502,557,079 182,594,500 8.365.265.000 8,072,108,000 16,626,413,000 20,057,110,000 $ 93,17^95,000 143,853,^36,429 44.755.631.000 281,783,562,429 473 524 y^7 50 , 275 , 899 842,065 1,979,250,000 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A. ..., 110,429,100 Matured, interest-ceased 590,050 Grand total outstanding „ Balance face amount of obligations issuable under above authority 2.030.367.964 284,287,454,940 111,019,150 Reconcilement with Statement of the Public Debt „.\v£„.,.:?.„.£...„?.:?.„ (Date) (Daily Statement of the United States Treasury, !?,S5J?...3,Q.f. J$*H9. (DaYei 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 284,398,474,090 5,601,525,910 , 1 284,705,907,078 111 .019.150 284,8l6,926,228 4l8.452.138 284,398,474,090 TREASURY DEPARTMENT WASHINGTON, D.C, IMMEDIATE RELEASE, Thursday, July 16, 1959. A-581 The Treasury Department announced today an optional exchange offering of 4-3/4 percent 12-1/2-month Treasury notes to be dated August 1, 1959, and to mature August 15, 1960, and 4-3/4 percent 4-3/4-year Treasury notes to he dated July 20, 1959, and to mature May 15, 1964, open to holders of $13,500 million I-5/8 percent certificates of indebtedness, maturing August 1, and $473 million 4 percent Notes of Series A-1961, dated August 1, 1957, on which the option to redeem on August 1, 1959, was exercised by the holders. Cash subscriptions will not be received. Interest on the new 12-l/2-month note will be payable on February 15 and August 15, 1960. Interest on the longer note will be payable on November 15, 1959, and thereafter on May 15 and November 15 in each year until the principal amount is payable. In the case of the 12-l/2-month note, exchanges will be made at par as of August 1 and the coupons due on that date on both of the exchange issues should be detached and cashed when due. In the case of the Notes of Series A-1961, interest coupons Nos. 5 through 8 should be attached to the notes when they are surrendered. In the case of the 4-3/4-year note, exchanges will be made at par as of July 20 with interest adjustments on the exchange issues as of that date, and both of the exchange issues should be presented with the August 1, 1959, coupon attached. In the case of the Notes of Series A-1961, interest coupons Nos. 5 through 8 should also be attached. The delivery date for both new issues will be August 3. The subscription books will be open July 20 through July 22 for this exchange offering. Any subscription for either issue addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the United States, and placed in the mail before midnight Wednesday, July 22, will be considered as timely. TREASURY DEPARTMENT Washington STATEIIENT BY DAVID A. LMDS AY, ASSISTANT TO THE SECRETARY, BEFORE THE COMMITTEE ON WAYS AND MEANS OF THE HOUSE OF REPRESENTATIVES ON H. R. 8l26 10:00 A.M., JULY 20, 1959 The Treasury Department appreciates the invitation to appear before this Committee to testify on H. R. 8126, introduced by Mr. Simpson. This bill would amend the Internal Revenue Code of 1954 with respect to the taxation of exchanges of property and distributions of stock made pursuant to orders enforcing the antitrust laws. H. R. 8126 would alleviate the impact of the income tax burden otherwise imposed where stock or other property is disposed of pursuant to an antitrust order. It would treat as a nontaxable exchange certain transfers between corporations of property for stock in obedience to an antitrust order. It further provides that where a corporation is required to distribute stock to its shareholders pursuant to an antitrust order, the distribution shall be treated as a dividend to the extent of the lesser of the fair market value of the divested stock or its average adjusted basis in the hands of the distributing corporation. In other words, the bill would apply to individual shareholders in the case of antitrust divestitures substantially the same rule as now applies to corporate shareholders. A-5& - 2 - There are certain limitations and safeguards provided under the bill which will be discussed later. The Du Pont Case Particular attention has been focused on H. R. 8126 and similar bills at this time because of the proposed divestiture of General Motors stock by E. I. du Pont de Nemours and Company. Briefly stated, the facts of this case are as follows: The Du Pont Company holds 63 million shares of General Motors stock out of a total of about 23l million shares outstanding. In June of 1957> "the Supreme Court held this investment violated the antitrust laws, and returned the case to the District Court for a determination of "equitable relief necessary and appropriate in the public interest to eliminate the effects of the acquisition offensive to the statute". If the Court accepts the Justice Department's plan for carrying out the Supreme Court order, all of the 63 million shares of General Motors stock would be transferred to a trustee .„ The trustee would be directed to distribute about two-thirds or 42,000,000 shares of the General Motors stock over a ten-year period to the public stockholders of Du Pont. He would be directed to sell over the ten-year period the balance remaining for the accounts of two corporate shareholders of Du Pont, Christiana Securities and Delaware Realty, which are largely owned by the - 3Du Pont family, and for the account of the stockholders of Delaware who directly own Du Pont stock. The cash proceeds of such sales would be distributed to Christiana, Delaware and the stockholders of Delaware. The decree proposed by the Department of Justice also would require sale by Christiana, over the ten-year period, of the 535*000 shares of General Motors stock which it owns directly. The market value of General Motors stock today is in the order of $56 a share. Accordingly, the distribution over a ten-year period at today's market amounts to a distribution of stock with an aggregate value of over $3.5 billion. The magnitude of the proposed distribution raises a question as to the impact of the tax laws on compulsory distributions under the antitrust laws. Under existing tax law, the General Motors stock received by Du Pont shareholders would be taxable as a dividend at fair market value to individual shareholders and at Du Pont's cost (less the dividend received deduction) to the corporate shareholders. The average cost to Du Pont of General Motors stock Is about $2.10 a share. H. R. 8126 would limit the amount taxable as a dividend to individual shareholders to $2.10 per share. The bill would make no change in the dividend tax on corporate shareholders. Recent Legislative Developments H. R. 8126 is related in purpose to a bill Introduced in the 85th Congress, H. R. 7^23, and is similar to S. 200 introduced this year by Senator Frear. A resume of the history of these bills and the position of the Treasury Department may be in order. H. R- 7628 would have extended nonrecognition of gain in certain situations where a taxpayer Is required under the antitrust laws to sell or dispose of property and subsequently reinvests the proceeds in similar property. That bill did not deal with the tax consequences of a distribution of property to shareholders. The Treasury Department, in its report to your Committee, opposed enactment of II. R. 7628 on the ground that special tax relief measures are objectionable In the absence of overriding considerations of general public policy. We stated: "The Treasury Department is not aware of any general policy considerations which would justify this special tax relief. However, the Department of Justice is in a better position than this Department to comment on this bill as it relates to antitrust policy." We also objected to the bill because it would have applied retroactively to dispositions of property occurring more than a year prior to enactment. The Department of Justice in its report to your Committee, also opposed enactment of II. R. 7628. One objection was that the requirement that the proceeds be invested in property similar or related in service or use to the property disposed of might present a basic incompatibility with antitrust enforcement requiring the divestiture of property. Another objection was that the bill CO y L_ - 5applied only to proceedings brought by the Attorney General and did not apply to divestiture proceedings brought under the Clayton Act by other agencies such as the Federal Trade Commission and the Interstate Commerce Commission. Furthermore, the Department of Justice stated that the retroactive feature of the bill would give rise to problems with respect to decrees of divestiture which had already been entered. On January 12, 1959 Senator Frear introduced S. 200. S. 200 would permit a corporation to distribute "divested stock" to its shareholders without dividend tax consequence if the transaction does not have as one of its principal purposes the distribution of earnings and profits. Proponents of this approach point out that in at least three instances the tax law has been amended by Congress to provide for the nonrecognition of gain in the case of exchanges or distributions of property ordered or certified to be necessary by a Federal agency. First, a provision for nonrecognition of gain or loss on exchanges or distributions in obedience to the orders of the Securities and Exchange Commission was added in 193^> now section 108l of the 195^ Code. This provision relates to an order of the Securities and Exchange Commission issued to effectuate the provisions of section 11 (b) of the Public Utility Holding Company Act of 1935* The order must be one requiring or approving action which - 6 - pQ the Commission finds to be necessary or appropriate to the integration or simplification of the holding company system of which the transferor corporation is a member. Second, nonrecognition of gain or loss on the sale or exchange of property to effectuate policies of the Federal Communications Commission was permitted under section 1071 of the 1954 Code. The Technical Amendments Act of 195<3 amended section 1071 by restricting nonrecognition of gain or loss to the sale or exchange of property certified "oy the Federal Communications Commission to be "necessary or appropriate to effectuate a change In policy of, or adoption of a new policy by, the Commission". The third instance relates to distributions pursuant to the Bank Holding Company Act of 1956. Section 1101 of the 1954 Code provides that under certain circumstances the distribution of nonbanking assets by a bank holding company may be made without recognition of gain if the Federal Reserve Board certifies that the distribution of property "Is necessary or appropriate to effectuate section 4 of the Bank Holding Company Act of 1956*" Public Healings were held by the Senate Finance Committee on S. 200 on May 26 and 27 of this year. The position talien by the Treasury Department on S. 200 before that Committee may be summarized as follows: (l) In the absence of overriding considerations of general public policy, special tax relief measures ore objectionable. y • -7 (2) If, however, some change in the tax law is deemed necessary by those charged with responsibility of enforcing the antitrust laws, the Treasury Department would be willing to cooperate in the development of appropriate legislation which would provide adequate safeguards and protect the public interest. (3) ^e questioned whether complete nonrecognition of tax in connection with distributions pursuant to antitrust divestiture decrees was appropriate and suggested that consideration be given to providing partial liquidation treatment to such distributions. In our testimony before the Senate Finance Committee, we stated that there may be cases where a taxpayer has acquired property in the past for legitimate business purposes under circumstances which did not appear to involve any violation of antitrust laws. Subsequently, by reason of developments in business relationships, it may be necessary to require that the taxpayer divest itself of such property to assure effective enforcement of the laws against restraint of trade. In such a case a strong argument can be made for tax relief especially where tax consequences of a divestiture may create adverse economic consequences for innocent parties. On the other hand, such equitable considerations would not exist in favor of a ta;:payer who could or should reasonably anticipate a divestiture decree at the time of acquisition of the property. During and since the hearings on S. 200, the Department of Justice has made it clear that some change in the tax law is neecssar; -8 - 65 to facilitate divestitures. In view of the position of the Department of Justice, the Treasury Department would not object to appropriate legislation in this area. After the hearings on S. 200, the Department of Justice concluded that it could not recommend adoption of the partial liquidation approach as a solution in the area of antitrust divestitures. It reasoned that the long-standing stockholders, who have a lower basis for their shares than the recent stockholders, would have to pay a substantially greater tax. Accordingly, the partial liquidation approach might provide the least relief in the case where relief may be needed most, namely, where the acquisition occurred many years ago when violation of the law may have been less evident at the time of acquisition. Another objection to the partial liquidation approach which was raised at the recent hearings before the Senate Finance Committee is that, although it grants tax relief to individual shareholders, the substitution of a capital gains tax for an ordinary dividends tax Imposes a much larger tax burden on corporate shareholders. As we stated in our testimony before the Senate Finance Committee, we were not categorical in our recommendation of a partial liquidation rule but offered it as a proposal for consideration. Policy Issues and II. R. 812. Enactment of special tax relief for dispositions of divested property would require strict limitations, which might be difficult to devise, or enforce, to prevent taxpayers from acquiring prohibited property with a view to a subsequent tax-free distribution of such property. We suggested to the Senate Finance Committee that if tax relief is to be enacted in this area, consideration might be given to more specific statutory criteria to prevent distributions of property for tax avoidance purposes, and that one such criterion might be a rule that tax relief will not be applicable to property acquired in reasonable anticipation of a divestiture decree, coupled with a presumption that such anticipation exists as to property acquired within a stated period, perhaps five years, prior to commencement of the antitrust proceedings. H. R. 8126 attempts to carry out this suggestion by providing that, with stated exceptions, its provisions shall not apply to stock which was acquired by the distributing corporation less than five years prior to the institution of the antitrust proceedings. One of the exceptions to the five-year limitation is that the limitation will not apply if the antitrust order recites that in the judgment of the Court or Commission or Board, as the case may be, the distributing corporation could not have reasonably anticipated that the acquisition of such stock would result in an antitrust order requiring its divestiture. We believe consideration should be given to mailing such a finding a requirement for - 10 - tax relief regardless of the time or year in which the divested stock was acquired. The five-year limitation appears less necessary in connection with the "dividend at cost" treatment provided for in H. R. 8126 than it would be in connection with complete nonrecognition of gain as provided in S. 200. By imposing an immediate dividend tax of an amount equal to the cost of the distributing corporation of the divested stock, H. R. 8126 has a built-in safeguard which eliminates or minimizes tax relief in the case of a shareholder of a corporation which has made a recent acquisition. It should be recognized, therefore, that the bill will aid in the enforcement of antitrust laws primarily in those cases where the stock to be divested has a low basis relative to its market value. This would ordinarily be the case where the divested stock was acquired by the distributing corporation many years before the time of divestiture. H. R. 8126 provides that the tax relief for distributions to shareholders "shall not apply to any distribution if the divested stock was acquired in pursuance of a plan one of the principal purposes of which is the distribution of the earnings and profits of the distributing corporation . . . ." Although a limitation along these lines is desirable, we have some reservations as to whether the exact phrasing of the rule is appropriate since it prohibits a tax avoidance motive only at the time of acquisition of the divested stock. A similar rule contained in S. 200 is more -11 - broadly phrased and would permit a court to look at the entire transaction in determining whether a tax avoidance situation exists• The definition of divested stock in H. R. 8126 contains five pertinent provisions, two of which deserve mention. One is that the antitrust order must recite that the result of the distribution will not lodge control of the corporation whose stock is distributed in a shareholder or defined group of shareholders likely to act in concert contrary to the policies of the Sherman Act or Clayton Act or both. While this provision Is mainly of interest to the Justice Department, it may have an advantage from the standpoint of tax policy in minimizing the possibility of special tax benefits accruing where the shareholders are In close affinity with the corporation whose actions gave rise to the antitrust divestiture. The second provision to which I should like to call the attention of this Committee is the requirement that the antitrust order recite that the application of special tax results under the bill relating to divested stock is required to reach an equitable judgment, decree or order in the antitrust suit or proceeding. This should be a helpful provision in preventing unwarranted relief and protecting the public interest. As indicated at the outset, the bill would also treat as a nontaxable exchange certain transfers between corporations of property for stock In obedience to an antitrust order. Specifically, the bill provides that if a corporation subject to an - 12 - antitrust order transfers property in obedience to such order to another corporation solely in exchange for stock of the acquiring corporation, whether or not the acquiring corporation is a controlled corporation, then no gain or loss shall be recognized to the transferor corporation upon such exchange. The provision, by ' its terms, shall not apply to a transfer of property acquired in pursuance of a plan one of the principal purposes of which was to avoid Federal income tax on the transfer. This provision relating to exchanges of property for stock appears to be extremely broad. It apparently is designed to permit maximum flexibility in the manner in which assets or businesses can, pursuant to antitrust action, be separated from a corporation without tax consequence. Most of the limitations and safeguards which expressly apply to divested stock are not by their terms applicable to exchanges of property for stock. Such limitations should also apply to exchanges of property for stock. This might be accomplished by permitting nonrecognition of gain on such exchanges only if the stock so acquired is required by the antitrust order to be distributed to the shareholders of the transferor corporation, subject to the limitations and requirements otherwise pertaining to divested stock. Conclusion Since, in the opinion of the Department of Justice, legislation is deemed necessary to implement the public policy underlying - 13 the antitrust laws, we would not object to appropriate legislation designed to facilitate divestiture proceedings. We have referred to problem areas, some of which are met by H. R. 8126 and others which we believe merit further attention, particuarly in the area of exchanges of corporate property for stock. If this Committee determines that a change in the tax law should be made in this area, we would be pleased to cooperate with the Committee in the development of the legislation. y "J 4 hr S RELEASE A. X. NJ1/SPAPERS, fussday, #oly 21, 1959* The Treasury Department announced last evening that the tenders tor two series oi Treasury bills, one series to be an additional issue of the bills dated April 23, 1955 ana the other series to be dated July 23, 1959, which were offered on JmXy 16, were opened at the Federal Reserve Banks on July 20. fenders were invited for #1,000,000,C or thereabouts, of 91-day bills and for IU0O,O0OfOO0, or thereabouts, of 182-day bills The details of the two series are as follows: mmt OF ACCEPTS) CCSIFITITIfl BIDS? High Low Average 91-day treasury bills maturing October 22, 1959 182-day treasury bills saturing Janaary 21, I960 Approx. Equiv. Priee Animal gate Approx. Equiv. Fries Anaaal Rate 99.XTX 3.280$ 99.151* 99.156 98.061 3.835$ 98.032 3#893$ 98*0^ 3.869$ 3.3li7$ 3.337$ 81* percent of the amount of 91-day bills bid for at the low price was accepted 20 percent of the amount of 182-day bills bid for at the low price was accepted fOt&L flMHIlS APPUID F0& At© ACCiFTO BT FWmAl District Applied For Boston Mew fork Philadelphia Cleveland Richmond Atlanta Chicago St. f£_ds Minneapolis Kansas City Dallas San Francisco $ 3Mli2,0GQ l,U2,556,ooo 29,087,000 32,823,000 15,522,000 1*1,138,000 201,611,000 18,352,000 6,990,000 37,986,0(K) 20,1^,000 63,635,000 RESEKfl DISTRJSfSs 2li,90$,000 61*7,019,000 13,062,000 32,393,000 13,722,000 18,320,000 120,711,000 15,166,000 6,990,000 33,728,000 20,021,000 53,31*3,000 Applied For Accepted i 3,1*67,000 565,275,000 12,61*2,000 10,935,000 5,868,000 3,919,000 73,581,000 1*,1*2Q,000 8,731,000 7,306,000 3,322,000 38,652.000 # 3,367,000 2l*5,25fc,OGO 7,61*2,000 10,535,000 5,868,000 3,069,000 63,531,000 14,1*20,000 7,971,000 6,906,000 3,322,000 38,252,000 wi r \\\w9mm*m9mm\mw*mmttmmi-9mmmmi-* ?0fAI3 §1,91*5,136,000 mammmmimmmmmmmimmmmmmmmm H,0OO,O80,O0Cka/5 |738,H8,000 moo,i3?,ooq^ a/ Includes 122*1,660,000 noncompetitive tenders accepted at the average price %f Includes J*li8,51*8,000 noncompetitive tenders accepted at the average price of 98.0J M i- TREASURY DEPARTMENT ___E______ WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Tuesday, July 21, 1959. 7 2 A-583 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated April 23, 1959, and the other series to be dated July 23, 1959, which were offered on July 16, were opened at the Federal Reserve Banks on July 20. Tenders were invited for $1,000,000,000, or thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows: RANGE OF ACCEPTED COMPETITIVE BIDS: 91-day Treasury bills maturing October 22, 1959 Price i t Approx. Equiv. i s Annual Rate 182-day Treasury bills maturing January 21» I960 Price Approx. Equiv. Annual Rate i High Low Average 99.171 99.15k 99.156 3.280$ 3.31*7$ 3.337$ !t J sJ 98.061 98.032 98.01*1* 3.835$ 3*893$ 3.869$ 81* percent of the amount of 91-day bills bid for at the low price was accepted 20 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 $ 3l*,9i*2,000 1,1*1*2,556,000 29,087,000 32,823,000 15,522,000 1*1,138,000 201,611,000 18,352,000 6,990,000 37,986,000 20,1*1*1*,000 63,685,000 $1,91*5,136,000 TOTALS Accepted Applied For Accepted 2l*,905,000 61*7,019,000 13,062,000 32,393,000 13,722,000 18,320,000 120,711,000 15,866,000 6,990,000 33,728,000 20,021,000 53,31*3,000 $ 3,1*67,000 565,275,000 12,61*2,000 10,935,000 5,868,000 3,919,000 73,581,000 1*,1*20,000 8,731,000 7,306,000 3,322,000 38,652,000 $ $1,000,080,000a/ $738,118,000 £1*00,137,000b/ 3,367,000 2l*5,251*,000 7,61*2,000 10,535,000 5,868,000 3,069,000 63,531,000 1*, 1*20,000 7,971,000 6,906,000 3,322,000 38,252,000 a/ Includes $21*1,660,000 noncompetitive tenders accepted at the average price of 99.156 H/ Includes $1*8,51*8,000 noncompetitive tenders accepted at the average price of 93.01*1* - 3- gg%_m&§_a__ff_%8 from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are eluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorp rated banks and trust companies and from responsible and recognized dealers in i ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanie an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $200,000 or less for the addition bills dated April 50, 1959 , ( 91 days remaining until maturity date on October 29, 1959 ) and noncompetitive tenders for $ 100,000 or less for the _-_-_^ $28$ 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the re tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 50, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills mat ing July 50, 1959 Cash and exchange tenders will receive equal treatment. pEEJ 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 ymm&x&m TREASURY DEPART2IEuT Washington RELEASE A. M. NEWSPAPERS, Thursday, July 25. 1959 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1 ,400^00,000 > or thereabouts, f cash and in exchange for Treasury bills maturing July 30^959 > ** of & 1T402.071.000 y as e anoun follows: 91 -day bills (to maturity date) to be issued _ July 30^1359 ' in the amount of t 1 T000.000.000 , or thereabouts, representing an additional amount of bills dated • kVr±1 3%^5" ' and to mature October 29, 1959 , originally issued in the amount of * 40O.218.00Q9 9 the additional and original bills to be freely interchangeable. nog -day bills, for & 4Q0.000.000 , or thereabouts, to be dated -fi_\ fcSS -Tiny 50. 1959 and to mature January 2 ^ 1 9 6 0 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma value). Tenders will be received at Federal.Reserve Banks and Branches up to the closi Daylight saving hour, one-thirty o'clock p.m., Eastem/W** time, Monday, Jdlyg, 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 price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, July 23. 1959 A-584 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 July 30, 1959* in the amount of $1,402,071,000, as follows: 91-day bills (to maturity date) to be issued July 30, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills dated April 30, 1959, and to mature October 29. 1959, originally issued in the amount of $ 400,218,000, the additional and original bills to be freely interchangeable. 182-day bills, for $ 400,000,000, or thereabouts, to be dated July 30, 1959, and to mature January 28, I960. 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, July 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 bhe Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and^price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of bhe Treasury expressly reserves the right to accept or reject any oi all tenders, in whole or in part, and his action in any such resped shall be final. Subject to these reservations, noncompetitive v tenders for $200,000 or less for the additional bills dated kpril 30, 1959, (91 days remaining until maturity date on October 29, 1959) and noncompetitive tenders for $ 100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on July 30, 1959 in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 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 hereunde need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent*purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of theirReserve Issue. Bank Copies of the circular may foe obtained from any Federal or Branch. TREASURY D E P A R T M E N T Washington 77 ' • STATEMENT BY ASSISTANT SECRETARY OF THE TREASURY L A U R E N C E B. ROBBINS B E F O R E T H E HOUSE C O M M I T T E E O N W A Y S A N D M E A N S , 11:00 A.M., E D T , THURSDAY, JULY 23,1959. Mr. Chairman and Members of the Committee: I am glad to have this opportunity to present the Treasury Department's views on the financing of the Federal Highway Program. In the highway legislation which it enacted in 1956, the Congress estab- lished certain policies for the long-term*financing of the Federal highw gram. It determined that the costs of the program should be paid by taxe which are in the nature of user-charge taxes. It set the rates of these so that revenues would be sufficient to pay the expected full cost of the progr By establishing the Highway Trust Fund and directing that total expenditures at any time could not exceed available revenues, the Congress established the policy of pay as you build. The Treasury Department strongly supports the principle of pay as you build from taxes specifically enacted to pay highway costs. The estimated cost of the 40, 000 mile interstate system has been increased substantially above the 1956 estimate and it is apparent that present taxes allocated to the Highway Trust Fund will not be sufficient to complete the system in the thirteen year period set as the goal by the Congress in 1956. The indicated deficiency is large, some $12 billion. Already the rate of outgo from the trust fund is greater than the rate of income. In the fiscal year 1959 just completed, expenditures were $2. 6 - 2- billion and exceeded receipts by over $500 million. As a result the accumu- lated balance in the fund as of June 30, 1958 of $1. 049 billion was reduced t $523 million as of June 30, 1959. This trend is expected to continue in fiscal I960. Expenditures are estimated to be $3.1 billion, exceeding estimated receipts by $1.0 billion. This would create a $500 million deficiency in the trust fund. The President in his budget message last January recommended an increase, effective July 1, 1959, of 1-1/2 cents per gallon in the present 3 cent per gallon tax on motor fuels. This would provide immediate funds to maintain the highway program at the construction rate set by the Congress. The President recommended that the increase in tax rate be for a five year period, the minimum required to permit apportionments among the states for the fiscal years 1961 and 1962. These and previous apportionments would be expended over a period through 1963 and 1964. Apportionments for 1961 would normally be made at the present time and those for 1962 in July or August of I960. It is the view of the Treasury Department that the problem should be met immediately in conformity with the Congressional intent of maintaining a "pay-as-you-build" program. There would appear to be only three alternatives (1) to finance the projected deficit with new taxes, (2) to cut back or stretc out the construction program, or (3) a combination of the two. The Treasury Department has given consideration to other types of user taxes, such as a flat tax on each vehicle, or one measured by horsepower, weight, or length. All of these alternatives would involve difficulties in enforcement and collection, and would appear to be impracticable as temporary tax measures. Under these circumstances, the Treasury Department can see no satisfactory solution to the problem except through increased motor fuel taxes. However, if the Congress decides to impose other appropriate forms of user taxes, which will produce the same amount of revenue, the Treasury will have no objection. Before the expiration of the recommended five year period, the results of the, Commerce Department's study will be helpful in establishing a more permanent method of financing. The important thing now is to make revenues and expenditures balance. From present indications, the balance in the trust fund will be exhausted by October, and it seems clear that immediate action should be taken to provide additional funds so that states may be reimbursed for work performed. Several proposals have been made to take care of the situation in lieu of an increase in the motor fuel taxes, including suspension of Sectio 209(g) of the 1956 Act, transfer of the present excise taxes on automobiles, parts and accessories, or of other revenues from the general fund. All of these proposals would result in the diversion of general revenues which would have to be replaced by additional taxes or met by Treasury borrowing. It has also been proposed that special revenue bonds be issued to finance the deficit in the trust fund. The Treasury Department must oppose this proposal for several important reasons: - 4X i I y \m* 1. Raising of the funds by borrowing, rather than through taxation, would clearly violate the "pay-as-you-build" principle originally adopted by Congress. Resort to borrowing at this comparatively early stage of the program would provide an undesirable precedent supporting borrowing at any later stage, when revenues appeared to be insufficient. 2. Although the proposal would not technically increase the outstanding public debt subject to statutory limit, and even though the bonds would represent a prior claim on the revenues of the highway trust fund, in any realistic sense the bonds would be considered to be obligations of the Federal Government. Since the end of 1952, despite vigorous efforts to sell longerterm bonds, the Treasury has been able to market only $10 billion in new obligations with maturities exceeding 10 years. With more and more Treasury debt tending to move into the short-term range, thus adding to inflationary pressures, it is more important today than ever to market longer-term Treasury issues. Issuance of a significant volume of competitive issues could severely complicate this problem. 3. By absorbing part of the flow of savings available in financial markets, issuance of special highway bonds would tend to reduce the supply of funds available to finance home building, State and local government projects, and corporate expenditures for new plant and equipment. This would tend to push long-term interest rates to higher levels or to force more borrowing into the short-term area, which is already congested. 4. Financing through the issuance of bonds creates inflationary pressures. A "pay-as-you-build" program drains off, through taxes, funds to pay for the work. A borrowing program might of necessity have to rely on bank credit expansion. 5. The interest costs of the borrowing would add tremendously to the cost of the program. Without additional taxes there would be an accumulated deficiency in the Highway Trust Fund of $12 billion by 1972. Financing of this deficiency by the issuance of revenue bonds would add, assuming an interest rate of 5%, about $8. 5 billion in interest costs to the program and would require the continuation of present highway taxes until 1981. 6. It is unlikely that the bond proposal would turn out to be a temporary financing device. Even if the interstate program as now planned were completed on schedule, it is improbable that most of the Federal highway revenues could be diverted after 1972 to debt repayment. Highway needs are too dynamic to expect that in 1972 a system planned 15 years earlier will be adequate to meet current needs without continuing highway construction on a very large scale. The end result could be that the Federal-aid highway program would be permanently financed by a steadily expanding volume of debt. For all of these reasons, the Treasury Department urges that prompt action be taken to increase the tax on motor fuels as recommended by the President, in order that the highway program can go ahead without interruption. go r y — TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Thursday, July 23, 1959. A "5o6 Preliminary figures show that $13.7 billion of the Treasury certificates of indebtedness and notes aggregating nearly $14 billion maturing or payable on August 1, 1959, have been exchanged for the new issues of Treasury notes. About $9,1 billion of the certificates maturing August 1 have been exchanged for the notes maturing August 15, I960, and $4.1 billion for the notes maturing May 15, 1964, leaving for cash redemption about $234 million. Of the $473 million Treasury Notes of Series A-1961 on which notice of intention to redeem on August 1, 1959, was given in accordance with the terras of Department Circular No. 992, about $432 million have been exchanged for the notes maturing August 15, I960, and $32 million for the notes maturing May 15, 1964, leaving for cash redemp- tion about $9 million. Total exchanges for the notes maturing August 15, I960, amounted to $9.5 billion and for the notes maturing May 15, 1964, amounted to $4.2 billion. The Federal Reserve System held $8,l43 million of the certificates maturing August 1, of which $$.5 billion were exchanged for the notes maturing August 15, I960, and $2,643 million for the notes maturing May 15, 1964. The publicly held maturing issues amounted to $5.8 billion, of which $5*59 billion, or 96 percent, were presented for exchange. This includes exchanges of about $4.0 billion for the note due August 15, I960 and about $1.5 billion for the note due May 15, 1964. Further details regarding the exchange will be announced later after final reports are received from the Federal Reserve Banks. p.l W w imjmmAm k. M. IffiWSMPEgS, Tuesday, July 28, 19_%« The Treasury Department announced last eveaing that the tenders for two aeries of Treasury bills, oat series to bo as additional issue of the bills dated April JO, 1959, and the other series to bo dated _uly 30, 1959, which were offered oo «teZy 23, wore opened at the Federal Sooorvo Banks on July 2?. teagers were invited for ^1,000,000,000, or thereabout*, of 91-day bills and for 1400,000,000, or thereabout*, of 182-day bills. The details of the two series are as follows: mmi% m 91-day Treasury bills maturing October 29, 1959 ACC C0NF1T Hflfl Approx. Sqaiv. : Annual -late t Price Bigis Low Average i s 99.2W 99*22© 99.21© 162-day Treeoury bills Maturing Jsa—ty 28, I960 Price 98.060 mf 98.046 98.049 2,987* 3.086$ 3.C&T* approx. Eqelr. Annual Bate 3.837$ 3.U$% 3.8601 a/ Excepting one tender of 160,000 96 percent of the amount of 91-day bills bid for at the loir price was accepted 91 percent of the amount of 182-day bills bid for at the low price was accepted torn mmsm ATfum wm A ® ACCEPTS* it rsmrnt fLwrnmn TJSTRIETS: District Applied For Accepted jt Applied For Accepted Boston lew lork Philadelphia Cleveland -iebmood Atlanta Chicago St. Louis Firmeapolia Kansas City Dallas San Francisco i 25,0^,000 1,350,426,000 25,022,000 33,629,000 12,876,000 24,073,000 189,698,000 25*723,000 9,035.000 33,709,000 13,614,000 40,546,000 I : i s t : J i i i i : i 1 6,200,000 610,743,000 6,912,000 30,655,000 2,009,000 3,047,000 87,886,000 4,416,000 3,557,000 5,787,000 8,542,000 51*142.000 t 3,120,000 258,465,000 1,912,000 24,214,000 2,009,000 2,777,000 57,886,000 4,416,000 2,348,000 5,485,000 2,642,000 35,492.000 fOtltS H,783,576,000 H,000,1O9,000J/1 1820,896,000 UiO0f786,00®i/ 15,^20,000 655,526,000 10,022,000 32,329,000 12,876,000 22,973,000 128,898,000 25,081,000 9,035,000 33,709,000 13,614,000 40,536,000 b/ Includes 1205,06l,OCO nortcompetitiv© tenders accepted at the average prise o of Includes §40,282,000 noncompetitive tenders accepted at the average price of 98.04 U- TREASURY DEPARTMENT c ^WASHINGTON. D.C. RELEASE A. M* NEWSPAPERS, Tuesday, July 28, 1959. A-5&7 The Treasury Department announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated April 30, 1959, and the other series to be dated July 30, 1959, which were offered on July 23, were opened at the Federal Reserve Banks on July 27* Tenders were invited for $1,000,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills* The details of the two series are as follows: RANGE OF ACCEPTED 91-day Treasury bills s 182-day Treasury bills COMPETITIVE BIDS: maturing October 29, 1959 t maturing January 28, I960 Approx. Equiv. s Approx. Equiv* Price Annual Rate t Price Annual Rate 8 High Low Average 99*245 99*220 99.230 2*9872 3*086* 3.047* t t t 98.060 mf 98.046 98.049 3*337* 3*8652 3.860* if Excepting one tender of $60,000 5o percent of the amount of 91-day bills bid for at the low price was accepted 91 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BT FEDERAL RESERVE DISTRICTS: District Applied For Accepted : Applied For Accepted : Boston $ 25,025,000 $ 15,020,000 : $ 6,200,000 $ 3,120,000 New York 1,350,426,000 655,526,000 : 610,743,000 258,465,000 Philadelphia 25,022,000 10,022,000 : 6,912,000 1,912,000 Cleveland 33,629,000 32,829,000 : 30,655,000 24,234,000 Richmond 12,876,000 12,876,000 s 2,009,000 2,009,000 Atlanta 24,073,000 22,973,000 : 3,047,OQd 2,777,000 Chicago 189,898,000 128,898,000 : 87,886,000 57,886,000 St. Louis 25,723,000 25,081,000 i 4,4l6,000 4,416,000 Minneapolis 9,035,000 9,035,000 : 3,557,000 2,348,000 Kansas City 33,709,000 33,709,000 % 5,787,000 5,485,000 Dallas 13,614,000 13,614,000 i 8,542,000 2,642,000 San Francisco 40,546,000 40,526,000 t 51,142,000 35,492,000 TOTALS $1,783,576,000 $1,000,109,000^/: $820,896,000 $400,786,000c/ >/ Includes $205,061,000 noncompetitive tenders accepted at the average price of 99.230 if Includes $40,282,000 noncompetitive tenders accepted at the average price of 98.049 from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subje to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular iray be obtained from any Federa.1 Reserve Bank or Branch. decimals, e. g., 99.925. Fractions may not be used. It is urged thatStenders 'be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $ 200,000 or less for the addition bills dated May 7, 1959 , ( 91 days remaining until maturity date on November 5, 1959 ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the r tive issues. Settlement for accepted tenders in accordance with the bids must b made or completed at the Federal Reserve Bank on August 6, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills ma ing August 6, 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 lo TREASURY DEFARK-iEuT Washington RELEASE A. M. NEWSPAPERS, Thursday, July 30, 1959 X <" V ( • m The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,400,000,000 , or thereabouts, fo cash and in exchange for Treasury bills maturing August 6, 1959 , in the amount of $1,400,882,000 , as follows: 91 -day bills (to maturity date) to be issued August 6, 1959 , tr\ TFX in the amount of $1,000,000,000 , or thereabouts, represent~$*% ing an additional amount of bills dated May 7, 1959 , and to mature November 5, 1959 , originally issued in the pjf amount of $400,032,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $400,000,000 y Qr thereabouts, to be dated *— * August 6, 1959 , and to mature February 4, I960 The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., !EksterVxt_o_ta_i time, Monday, August 3, 1959 £££$& " 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 PQ \j y TREASURY DEPARTMENT P " » '» '• .P'HU'JII-II H....I.IIL.MJ i ]•• JI.JIMK "•' »| 'l^|_____BagB»aa«MB^MnMWMWW_________«««_BM____________i WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, July 30, 1959 A-588 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 August 6, 1959, i n the amount of $1,400,882,000, as follows: 91-day bills (to maturity date) to be issued August 6, 1959, in the amount of $1,000,000,000, or thereabouts, representing an additional amount of bills dated May 7, 1959, and to mature November 5, 1959, originally issued in the amount of $400,032,000, the additional and original bills to be freely interchangeable. 182-day bills, for $ 400,000,000, or thereabouts, to be dated August 6, 1959, and to mature February 4, I960. 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, August 3, 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from Incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bill3 applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated May 7, 1959, (91 days remaining until maturity date on November 5, 1959) and noncompetitive tenders for $ 100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 6, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 6, 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 duringoOo the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of bills and the from conditions Federal of theirReserve Issue. Bank Copies orthe Branch. of Treasury the circular may begovern obtained any - « " • * B3N1DIA3S WWm, Friday, July 51, 13S9> ®M* Treaaury De^rtsaent today «smM$*eei& tfta reeults of th» euo*r«^ e&fedfcailgir ^ff lag of 4-3/4 percent Treaisury iote© of Series 0*1980, tofee$a&ed 4u£lurir X-,-1059, <lue August 15, 1080, sad 4-5/4 p©rces*t fmmmry mtm of SiirSee A-X&S4,- diluBd'^ay'lDi^lA! due Itey IS, 3JS4, op«i to tolifcw of #13,500,587,000 of i~S/a percent ?MMni*? O n H f ) cate® of mdabt©ds»ssi of S«ries C-30&, attforJitg August X9 19S9, and ^nr,*Uj/D(Kf of 4 percent Tr»_ury 8®feeis of gerl«*e A-.3&6X, a&in^ Awgust 1, its?, oft tmMrthfc # U o t t ^ x * d m on Augatt 1, 3SS9, w e»reifs«& by the holders. eateeri^Stot* fm the tsfc#rfj« Mounted to $13,799,810,000, l « v i 3 % $8SS,481,0d0 of tto mdafeffr i«we« for «f&sh red« tiati. Of this sstamnffc $g8$_589_000 ere ttoe certificates sad $7,908i>00& mm the notes* - Jteonts «citsai#&& irere divided between tba tw asn? "issue* aa&;*i^-*he several FederalfteaerveXttsfcrlcts sad the'********? mm tollmmi in, wrfu ,n«tti nwi ».MUH<*..mi BH.HI.II iii»ii,M«r.77KMiWi,i.M),i,.,«m..iimiiw ,J.IIIHIII.. iymiiii""« Ffedeml Bessrve ©i0trlet lew Torls nilftftottfef* Clew3jg0d'Bicbsottd Atlanta CMc^? St. tadu Miii&^SJoXis KSiis*6$ity. Ballad ' S@y_ .Traqcisco Treatftvry flstal 0«1&S§ C*fB» **• ftor C-3JS0 Botes ?,450,gS7,OO0 77,000,000 2QX*ie3,000 4g,4S§,000 154,2X7,000 35$,ttl3*O0O 111,040,600 70,060,000 $$40^OOO 55,309,000 £40,772^000 • & m m 10,127,633,000 h~iMl im®n mt. tw C-1960 Ifbfcee ^f'2B;Wi9nbd&v' g^3,C344,000 03,431^000 lH,3Kr^000 975,000 gjH4,000 • 43,0^5,000 U # 040.O_0 10jG50,000 4,0U,0O3 380_000 w,]»^otk) tbr'-tj-1960 "Bates " 1 ffiBi7i;doo 7,ti5,3U,0<X) 101^091,000 "v 2_»,Sl2,000 45,444,000 158.^331,000 ;iS84i8»l,QQP s..:i^,m-$$o -81,310,000 1 HX),039*000 .. ;SS,e»fO0O .^iTyffr 23,665,000 X3,SS6,0GG l«2,0oe,ooo $9,560,581^000 •••inni>^ »*/<_ guausuror ncaw or g a m i-iy* F e d e m l E@@©r»e district Bomtoimt- Wm mrt &iilA&$l&bla Cleveland Kiolisioad AtlftOtft Chicago St. I^ttls ... Miisne&poXis Kansas City DaHw San fema.i$cQ • Tresjnwsy C ~ 2 & $ Ctfav ©x* , 2,360,634,000 44#^prQ00 57,30&,,<J00 .as,sii,ooo . 69,436,000 . £75,913,000 4O,E40,000 3b,050,000 i>0,7G3,0iX> 27,SiG#.QOO ..9^,903,000 . __,__id2iifiasi Total $4,147,165,000 A»1991 mtemm* ox. *ygg,sr 21,9?5,QQ0 7B5,00G g?0*QQ© 670,000 £00,000 *,93*,0QD< i800,000 - • 1,175,000 M «» a7o.,ooo «<• .« $32,114,000 T^a^r 2tnW3»S^,O0O 45,1^0®®:&7>5?a,000 •«4»._97,000 ^9,6^1000 27«,te^,O0Q 41,040,000 35,950,000 m.,majm E7,$S8,00® ao,ira,ooo 3^401,000 $4,179,279,000 TREASURY DEPARTMENT WASHINGTON, D IMMEDIATE RELEASE, Friday, July 5 1 , 1959. A-589 The Treasury Department today announced the results o f the current exchange offering of 4-3/4 percent Treasury Notes o f Series C-1960, to be dated August 1, 1959, due August 15, 1960, and 4-3/4 percent Treasury Notes o f Series A-1964, dated July 2 0 , 1959 due May 15, 1964, open to holders of $13,500,387,000 o f 1-5/8 percent Treasury Certificates of Indebtedness o f Series C-1959, maturing August 1, 1959, and $472,914,000 of _ percent Treasury Notes of Series A-1961, dated August 1, 1 9 5 7 , on which the option to redeem on August 1, 1 9 5 9 , was exercised b y the holders. Subscriptions for the new issu< amounted to $13,739,810,000, leaving $233,491,000 of the exchange issues for cash redem] tion. Of this amount $225,589,000 are the certificates and $7,902,000 are the notes. Amounts exchanged were divided between the two new^issues and among the several Federal Reserve Districts and the Treasury as follows: 4-5/4$ TREASURY NOTES OF SERIES C-1960 Federal Reserve C-1959 Ctfs. ex. District for C-1960 Notes Boston $ 77,576,000 New York 7,450,267,000 Philadelphia 77,660,000 Cleveland 201,923,000 Richmond 42,469,000 Atlanta 154,217,000 Chicago 555,816,000 3t. Louis 111,640,000 MLnneapo3.is 70,660,000 Kansas City 96,028,000 Dallas 55,508,000 3an Francisco 240,775,000 Preasury 15,296,000 Total federal Reserve Jistrict lost on lew York 'hiladelphia leveland Ichmond tlanta hicago t. JLouis inneapolis ansas City alias an Francisco reasury $9,127,655,000 A-1961 Notes ex. for C-1960 Notes $ 28,597,000 265,044,000 25,451,000 18,589,000 975,000 2,114,000 49,025,000 11,040,000 10,650,000 4,011,000 550,000 18,892,000 400,000 $452,898,000 4-5/4$ TREASURY NOTES OF SERIES A-1964 A-1961 Notes ex. C-1959 Ctfs. ex. for A-1964 Notes for A-1964 Notes $ 1,546,000 $ 64,897,000 21,925,000 5,566,654,000 725,000 44,950,000 270,000 57,502,000 670,000 25,517,000 200,000 69,458,000 4,655,000 275,612,000 800,000 40,240,000 _ 55,950,000 1,175,000 50,765,000 - 27,656,000 570,000 88,805,000 - 5,401,000 7,165,000 $32,114,000 Total exchanges for C-1960 Notes 106,175,000 7,715,511,000 101,091,000 220,312,000 43,444,000 156,351,000 584,841,000 122,680,000 81,510,000 100,059,000 55,658,000 259,665,000 13,696,000 T $9,560,531,000 Total exchanges for A-1964 Notes 66,243,000 5 ,388,559,000 45,675,000 57,572,000 24,187,000 69,658,000 278,245,000 41,040,000 35,950,000 51,940,000 27,636,000 89,173,000 5,401,000 $4,179,279,000 TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, Monday, August 3, 1959 The following letter signed by Secretary Anderson is being sent to banks and other financial institutions: August 3, 1959 TO BANKS AND OTHER FINANCIAL INSTITUTIONS: Since 19^5 the Treasury Department regulations have required every financial institution in the United States to file on Form TCR-1, Report of Currency Transactions, monthly reports of large and unusual currency transactions. This form has now been revised and simplified to permit easier preparation by financial institutions and increased usefulness to the Treasury Department's Internal Revenue Service. In addition, only one copy of the new smaller form is to be submitted instead of two copies as required heretofore. The supply of old forms should continue to be used until exhausted, but only one copy of each report should be filed. In view of the fact that recently there has been a wide variance among financial institutions with respect to reporting large or unusual currency transactions, I would like to again emphasize how important full and careful reporting by banks is to the Internal Revenue Service. These reports were originally developed for the purpose of discovering large currency transactions resorted to by racketeers, dealers in narcotics, foreign agents, and others engaged in illegal activities as an attempted method of concealing income. Particularly, the reports have been of invaluable assistance to the Internal Revenue Service in breaking some of the largest income tax evasion . cases. For example, in fiscal years 1957 and 1958* the Revenue Service completed 129 fraud cases involving additional tax and penalties of approximately $13,500,000 which originated from information contained in Forms TCR-1 submitted by banks and other financial institutions. The Internal Revenue Service has recently revised its procedure to provide for better utilization of tne currency reports and tighter controls for their handling by Its employees. Instructions were issued again cautioning Internal Revenue employees that the reporting of currency transactions by financial institutions should not be divulged to the customers of the reporting institutions. At this time I would like also to call to your attention the importance of financial institutions requiring satisfactory identification. Instances have recently been brought to our attention in which individuals have engaged in large and unusual currency transactions and have furnished false or inadequate identification. Transactions of this nature can have far-reaching effects on the protection of the Federal revenue, and all banks and other financial institutions are requested to guard against those transactions where satisfactory identification is not furnished by persons or organizations (including any agents or couriers) engaged in currency transactions. Attention - 2 - is invited to the Instructions Relating to Reports of Currency Transactions, which provide in part: "Section 102.3. Identification required. No financial institutions shall effect any transaction with respect to which a report is required unless the person or organization with whom such transaction is to be effected has been satisfactorily identified** A decent stirvey &f the forms filed indicates that some financial institutions are not submitting reports when it appears obvious that the criteria tot the submission of reports have been meij while, &n the other hand, there are indications that Sotoe few report© are received of cash transactions which are ordinary, necessary^ and commettsttrate with the customary financial require-* j_ents of the persons or organizations making the transactions. Therefore, I would li&e to tirge all financial institutions to re-examine their methods of handling this program* There are attached a Copy Of the current instructione and the new Foritf TCR-1* it may be that because of the constant pressures of day-to-day problems, and in some instances the mergers of banks, some offi^ eials of financial institutions are t&famdliar with the Treasury ttepartment*s currency reporting program. Officials of ail banks and other financial institutions are requested to give their wholehearted cooperation in furnishing information to enable the Internal Revenue Service to identify the few tax cheats, thereby helping to protect the economic and financial interests of the vast majority of our citizens. I am sure that upon reviewing this matter all financial institutions will realize the importance of proper reporting and assisting the Treasury Department in this area as they have in so many other ways. The Treasury Department is grateful for the assistance rendered it by the financial institutions of the country. Sincerely, Secretary of the Treasury Attachments - 2 TITLE 31 - MONEY AND FINANCE: TREASURY •••- -• SUBTITLE B - REGULATIONS RELATING TO MONEY AND FINANCE CHAPTER I - MONETARY OFFICES, DEPARTMENT OF THE TREASURY Part 102 - Instructions Relating to Reports of Currency Transactions Part 102, Chapter I, Subtitle B, Title 31, of the Code of Federal Regulations of the United States, is hereby revised to read as follows: Sec. 102.1 Reports of currency transactions required. 102.2 Filing of reports. 102.3 Identification required. 102•k Definitions. AUTHORITY: §§102.1 to 102A issued under R.S. 251, sec. 5(b), IfO Stat. kl5, as amended,- 31 U.S.C. k2J, 12 U.S.C. 95a and note, E. 0. 8389, as amended by E. O.'s 8*K>5, Qkk69 QhQk, 81*93, 8565, 8701, 8711, 8721, 87^6, 8785, 8832, 8963, 8998, 9760, 3 CFR, 19^3 Cum. Supp., 3 CFR, 191+3-1948 Comp., E. 0. 9193, as amended by E. O.'s 9567, 9788, 3 CFR, 19^3 Cum. Supp., 3 CFR, 19^3-19^8 Comp. § 102.1 Reports of currency transactions required. Commencing with transactions occurring in the month of August 1959, every financial institution in the United States shall file monthly reports on Form TCR-1 concerning each deposit or withdrawal, or other payment or transfer, effected by, through, or to such financial institution, which involves transactions in United States currency as follows: \j > - 2 ~ (a) Transactions involving $2,5>00 or more of United States currency in denominations of $100 or higher; (b) Transactions involving $10,000 or more of United States currency in any denominations, and (c) Transactions involving any amount in any denominations, which in the judgment of the financial institution exceed those commensurate with the customary conduct of the business, industry or profession of the person or organization concerned* § 102.2 Filing of reports. Reports on Form TCR-1 shall be filed on or before the l£th day of the month following that in which the reported transactions occur, with the Federal Reserve Bank of the district in which the reporting financial institution is located* All information called for in such form shall be furnished. A supply of Form TCR-1 may be obtained upon request directed to any Federal Reserve Bank. § 102.3 Identification required. No financial institution shall effect any transaction with respect to which a report is required unless the person or organizations with whom such transaction is to be effected has been satisfactorily identified. § 102.Ii Definitions. As used in this part "payment or transferM shall include exchange of currency; and "financial institutions" shall mean banks, trust companies, savings banks, private bankers, investment bankers, building and loan associations, securities and commodities Cr -3brokers, and currency exchanges and other persons or organizations engaged primarily in cashing checks and exchanging currency* Secretary of the Treasury Datedt AUGUST 3, 1959 f^"?*"1 n REPORT OF CURRENCY TRANS ACTIONS See Reverse for Instructions U.S. Treasury Department (Revised 8-3-59) Part A. PERSON OR ORGANIZATION CONCERNED IN TRANSACTIONS REPORTED Name Address. Business, profession, or occupation Part B. DESCRIPTION OP TRANSACTIONS U.S. Currency Involved Date Total amount Amount in denominations of $100 or higher Nature of Transactions (State whether deposit, withdrawal, exchange of currency, cashing or purchase of check, etc.) Additional information Part C. FINANCIAL INSTITUTION REPORTING Name Address (Nunber ) (Street) (City) (State) INSTRUCTIONS This report is required pursuant to Treasury Department regulations revised August 3, 1959 (31 Code of Federal Regulations 102). Forms TCR-1 shall be prepared in original only for currency transactions involving United States currency as follows: 1* Transactions involving $2,500 or more of United States currency in denominations of $100 or higher; 2. Transactions involving $10,000 or more of United States currency iu any denominations, and 3. Transactions involving any amount in any denominations, *hich in the Judgment of the financial institution exceed those commensurate *ith the customary conduct of the business, industry or profession of the Person or organization concerned. Reports in which ^strict form may shall be filed on or before the 15th day of the month following that the reported transactions occur, with the Federal Reserve Bank of the in which tho reporting financial institution is located. Copies or this be obtained from any Federal Reserve ttank. Comparison of principal items of assets and liabilities of active national3>2nks - Continued (In thousands of dollars) _ June 1 0 , 1959 LIABILITIES Deposits of individuals, partnerships, and corporations: Demand 58,917.809 Time 33.779.7^7 Deposits of U . S. Government....... 1.755.388 Postal savings deposits............ 9.457 Deposits of States and political subdivisions 8,072.361 Deposits of banks 8.522,813 Other deposits (certified and cashiers* checks, etc.)........... 1.601.688 Total deposits.. H2,659,263 Bills payable, rediscounts, and other liabilities for borrowed money 1,419,817 Other liabilities 2.135.073 Total liabilities, excluding capital accounts....•••••••••• 116.214.153 CAPITAL ACCOUNTS Capital stock: Common • 3,075,784 Preferred... ••••••••• 3.091 Total..... 3,078.875 Surplus . 4,857,509 Undivided profits.. 1,843,558 Reserves.•••••••••••••••••••••••••• 260.696 Total surplus, profits and reserves.•••••••••••••••••.., 6.961.763 Total capital accounts 10.010.638 Total liabilities and Percent capital accounts...... 126,254.791 26.26 RATIOS: 44.21 U.S.Gov't securities to total assets 8.91 Loans & discounts to total assets Capital accounts to total deposits Mar. 12, 1959 June 23, slnerease or decrease sIncrease or decrease :since Mar. 12. 1959 gslnce June 23. 13S8 1958 : Amount : Percent : Amount : Percent 3,802,314 2,450,055 .3,229,104 6.90 7.82 -64.78 -8.26 ..539,621 -162,348 -6.27 -1.87 -1.02 -.05 -67,931 2,252,514 -4J07 501,919 54.68 2,10 19.962 928,315 40.163 188,87 1,9? -.95 59,183.011 33,229,040 1,622,690 9.559 55.115,495 31.329.692 4,984,192 10,308 -565,202 550,707 132,698 -102 1,66 8,18 -1*07 8,168,870 8,585,962 8,611,982 8,685,161 -96,509 -63,149 ,,1.18 - .74 1.618.181 112,717.313 1.669.619 110,406,749 -16.4.3 -58,050 917,898 2,085,111 191,502 2,094,910 115.720.322 112.993.161 493.831 .43 3,220,992 3,051,0*5 3-142 3.054.457 4,821,012 1,712,065 272.623 2,865,U6 2.743 2.867.859 4,514,485 1,839,600 253,710 24,769 24.418 36,497 131.493 -11.927 .81 .10.20 .80 .76 7.^8 -4,37 210,668 318 211.016 343,024 3,958 6-986 6,80,5,700 9,860,157 6,607,795 9>475,654 156,063 2,29 180,181, l f 83 353*968 ,564,984 _5___6. 125.580.479 Percent 27.70 42.38 8.75 122.468.815 Percent 28.25 41.56 8.58 3.785.976 _2_0_>. -2__L 674.312 .54 2.04 _____! 7.35 12.69 _Z_2__ 7.60 .22 _______ NOTE: Minus sign denotes decrease. 1*2L QQ y _* Statement showing comparison of principal items of assets and liabilities of active national banks as of June 1 0 , 1959t March 1 2 , 1959 and June 23, 1958 (In thousands of dollars) jBne 23 silnerease or decrease ^Increase or decrease » '• since Mar. 1 2 . 1959 .since June 2 3 . 1958 s Amount : Percent * Amount s Percent Number of banks........ 4,559 4,606 -47 4,569 -10 ASSETS Commercial and industrial............. 23,255,052 22,305,884 21,426,872 4.26 949,168 1,828,180 Loans on real estate.................. 14,505,U3 14,052,350 12,759,900 3.22 ^763 1.745,213 All other loans, including overdrafts 19.153.215 17,942,232 17,713,632 1,210,983 6,75 1,439,58? 51,900,404 2,612,914 4.81 Total gross loans... 56,913,380 54,300,466 5,012,976 1,083,326 14.208 Less valuation reserves......... 1.097.534 997,971 1*21 99,56? 50.90H.433 2,598,706 4.88 4,913,413 Net loans 55.815,846 53.217.140 U . S . Government securities: 34,787,430 34,599,192 -1,639,707 -4.71 -1,451,469 -4.20 Direct obligations.. 33,147,723 3.045 2.813 1.559 51.20 qt.791 Obligations fully guaranteed. 4,604 34.790.475 34.602.005 -1.638.118 ^ . 7 1 •a.149.678 Total U . S . securities........... 33.152.327 Obligations of States and politi9,005,281 8,364,896 66,704 .74 707,089 cal subdivisions.................... 9,071,985 1.769.676 2,045,247 -119,125 -6.73 Other bonds, notes and debentures..... 1,650,551 -394,696 Corporate stocks, including stoeks 288.263 274.438 1.14 _3_it2_L 17,123 of Federal Reserve banks............ 291.561 ii_-t-_-2_695 45,286,58cT^__687.27l «.3_68 -1.120_162 Total securities..... 44.166.424 99,070,835 96.189.019 911.435 J22 -MSQt&BL Total loans and securities....... 99.982.270 1,554,486 1,565,247 18,162 3.10 37.401 arreney and coin..................... 1,602,648 11.275,663 11,261,086 -253.210 -2.25 •238,633 Reserve with Federal Reserve banks.... 11,022,453 11.368.670 11.206.103 -159.268 -1.1a 3,299 alances with other banks...... 11.209.402 Total cash, balances with other banks, including reserve balances and cash items i n process 24.198.819 24.032.436 .364.316 -1-51 ~197,9?1 of collection 23.834.503 2,?10f825. ._ 2,242,360, 19Q,6_j8 -127,191 5_L5_L ther assets.................. 2.438.018 125,580,422 122,468^5^674.312 ^4~~3^85.976 Total assets........ 126.254.791 8.53 13.68 8t13 9.66 2a.98„. 9.65 63.67 ~^4.19 8.45 -19.30 6.24 -2.47 _i_54 2.39 -2.12 tO? __a82 8_48 3*OQ - 2 - and other securities of $1,533,000,000 increased $40,000,000. Other loans, including loans to farmers, loans to banks, and other loans to individuals (re and modernization and installment cash loans, and single-payment loans) of $12,000,000,000 increased about 7.7 percent since March. The percentage of net loans and discounts (after deduction of valuation reserves of $1,097,534,000) to total assets on June 10, 1959 was 14.21 in comparison with 42.38 in March 41.56 in June 1958. Total investments of the banks in bonds, stocks, and other securities aggre- gated $44,200,000,000, a decrease of $1,700,000,000 since March. Included in t investments were obligations of the United States Government of $33,200,000,0 ($4,600,000 of which were guaranteed obligations). These investments, represen 26.26 percent of total assets, were decreased by $1,600,000,000 during the per Other bonds, stocks, and other securities of $11,000,000,000, including $9,100,000,000 of obligations of States and other political subdivisions, show a decrease of $49,000,000 since March. Cash of $1,603,000,000, reserves with Federal Reserve banks of $11,022,000,00C and balances with other banks (including cash items in process of collection) $11,209,000,000, a total of $23,834,000,000, showed a decrease of $365,000,000 Bills payable and other liabilities for borrowed money of $1,419,817,000 showed an increase of $500,000,000 since March. Total capital funds ©f the banks on June 10 of $10,041,000,000, equal to 8.91 percent of total deposits, were $180,000,000 more than in March when they were 8.75 percent of total deposits. Included in the capital funds were capita stock of $3,079,000,000, of which $3,091,000 was preferred stock; surplus of $4,857,000,000; undivided profits of $1,844,000,000, and capital reserves of $261,000,000. TREASURE DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Wednesday, August 5, 1959. A-591 The total assets reported by the 4,559 active national banks in the United States and possessions on June 10, 1959 amounted to nearly $126,300,000,000, it was announced today by Comptroller of the Currency Ray M. Gidney. The total assets showed an increase of $674,000,000 over the amount reported by the 4,569 active national banks on March 12, 1959, the date of the previous call, and an increase of $3,786,000,000 over the amount reported by the 4,606 banks on June 23, 1958. The deposits of the banks on June 10 were $112,660,000,000, a decrease of $58,000,000 since March. Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $58,900,000,000, a decrease of $565,000,000, and time deposits of individuals, partnerships, and corporations of $33,800,000,000, an increase of $550,000,000. Deposits of the United States Government of $1,755,000,000 increased $133,000,000 in the period; deposits of States and political subdivisions of nearly $8,100,000,000 decreased $97,000,000 and deposits of banks of $8,500,000,000 showed a decrease of $63,000,000. Postal savings deposits were $9,457,000 and certified and cashiers' checks, etc., were $1,600,000,000. Gross loans and discounts on June 10, 1959 of $56,900,000,000 showed an increase of $2,600,000,000 since March. Commercial and industrial loans of $23,200,000,000 increased $949,000,000, while loans on real estate of $14,500,0 increased $453,000,000. Retail automobile installment loans of $4,200,000,000 showed an increase of $280,000,000. Other types of retail installment loans of $1,400,000,000 showed an increase of $36,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bond TREASURY DEPARTMENT Comptroller of the Currency Washington RELEASE A. M. NEWSPAPERS, Wednesday, August 5. 1959. A-591 The total assets reported by the 4,559 active national banks in the United States and possessions on June 10, 1959 amounted to nearly $126,300,000,000, it was announced today by Comptroller of the Currency Ray M. Gidney. The total assets showed an increase of $674^000,000 over the amount reported by the 4,569 active national banks on March 12, 1959, the date of the previous call, and an increase of $3,786,000,000 over the amount reported by the 4,606 banks on June 23, 1958. The deposits of the banks on June 10 were $112,660,000,000, a decrease of $58,000,000 since March. Included in the deposit figures were demand deposits of individuals, partnerships, and corporations of $58,900,000,000, a decrease of $565,000,000, and time deposits of individuals, partnerships, and corporations of $33,800,000,000, an increase of $550,000,000. Deposits of the United States Government of $1,755,000,000 increased $133,000,000 in the period; deposits of States and political subdivisions of nearly $8,100,000,000 decreased $97,000,000, and deposits of banks of $8,500,000,000 showed a decrease of $63,000,000. Postal savings deposits were $9,457,000 and certified and cashiers1 checks, etc., were $1,600,000,000. Gross loans and discounts on June 10, 1959 of $56,900,000,000 showed an increase of $2,600,000,000 since March. Commercial and industrial loans of $23,200,000,000 increased $949,000,000, while loans on real estate of $14,500,00 increased $453,000,000. Retail automobile installment loans of $4,200,000,000 showed an increase of $280,000,000. Other types of retail installment loans of $1,400,000,000 showed an increase of $36,000,000. Loans to brokers and dealers in securities, and others for the purpose of purchasing or carrying stocks, bonds and other securities of $1,533*000,000 increased $40,000,000. Other loans, including loans to farmers, loans to banks, and other loans to individuals (repair and modernization and installment cash loans, and single-payment loans) of $12,000,000,000 increased about 7.7 percent since March. The percentage of net loans and discounts (after deduction of valuation reserves of $1,097,534,000) to total assets on June 10, 1959 was 44.21 in comparison with 42.38 in March and 41.56 in June 1958. Total investments of the banks in bonds, stocks, and other securities aggregated $14,200,000,000, a decrease of $1,700,000,000 since March. Included in the investments were obligations of the United States Government of $33,200,000,000 ($4,600,000 of which were guaranteed obligations). These investments, representing 26.26 percent of total assets, were decreased by $1,600,000,000 during the period. Other bonds, stocks, and other securities of $11,000,000,000, including $9,100,000,000 of obligations of States and other political subdivisions, showed a decrease of $49,000,000 since March. Cash of $1,603,000,000, reserves with Federal Reserve banks of $11,022,000,000, and balances with other banks (including cash items in process of collection) of $11,209,000,000, a total of $23,834,000,000, showed a decrease of $365,000,000. Bills payable and other liabilities for borrowed money of $1,419,817,000 showed an increase of $500,000,000 since March. Total capital funds of the banks on June 10 of $10,011,000,000, equal to 8.91 percent of total deposits, were $180,000,000 more than in March when they were 8.75 percent of total deposits. Included in the capital funds were capital stock of $3,079,000,000, of which $3,091,000 was preferred stock; surplus of $4,857,000,000; undivided profits of $1,814,000,000, and capital reserves of $261,000,000, a.s Q CM 00 vo OVCO IN CM • • • • VO tN-3" CO IS.JS CM CO o CM C^CM 00 ON co 8 « CM 1' _* W W H OO H CO » . .I CM O Ov •3" CM * . . OCM o H CO CM 3F vo o . . v>vocq _sOvvo H O • • . • I Hco H CM O-CO CM I O O OVO CM tNvO H . . .f vr\o CM vo v^c~> COJ* _> CM CM CO Qv ov qv o 3- vo ir o * at . . uvov^h o H CM 00 H H p^o\ • •» . 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W - h , Illff-rt *, Iff*. s1 jyy %**% evealag that the tenders for two series < Treasury bills, one series to be an additional issue of the bills dated my 7, 1959, & M the other series to be dated August 6, Xf$f» vhich warm mttmrmM on July 30, were opened a% the- Federal Reserve Banks on Amwmt J, Tenders Here AmAtmi tor |1>000,OCK or thereabouts, of 91-day M i l s and for 1400,000,000, or thereabout, of 182-day bill fh$ details of the t«o series are as followss bill« 91*^ay ¥**mmm®nr &£H* m n or AGO_P» fe, 3.960 IHSISWIMMSBIIII Apprm&.. I^uiv« Approx.. E^uiv« 1 !»••! ..W..I.HIIM I. •<).••• l.lliirul.lDM.milMlltWHIIIIia.llMIMIXWIIMllll ' High £9.2i*T 99.116 99.131 14»? 2.9?fg S#06t$ 3**1$ 9§.12§ a/ 9S.10S 9SJ01 3.703* %.7*M $.137$ if mmtpUm tuo tenders totaling |61,000 % percent of the amount #f n - * g r bills bid for at the lev price mm accepted m percent of the amount of 2ftMhgr bills M i for at the lowprice was accepted TMDii. trams APPLHD MstrUt foil Am A r a v m m wmmh Aoolled For 22__3_i_M_2_2_2_^_*_^E_i_M__^_^- mmim Acceoted A__Eii__i. f^mZZ!ZZmmmmmx2*mJ^m, $ f%Had«lplsia Cleveland. Atlanta St* !*•!* -!imwapolia Kansas City mxum mm Tmmimm wmm X 26,654.000 24,910,000 2$991k9WQ UI»3fJ»000 22,431,000 12.60^,000 22,154,000 13,711**0®© n t 6i7 f §oo iafi$*#ooo H_Si5»t35,00Q U*,?liifO0O m9Bik9w® H#^0f#l#oaq_/ Includes $201^,934,000 noncompetitive tenders 146,018,000 noncompetitive LL 3,161,000 # 2,494,000 #79f9SM©© m*®M9m® u9m39(m x?$9m$®m n9kM9m sufiim* 27,235,0<X) 672,000 ASS S,136#<K&® 3,370,000 10,506,000 4,600,000 i9$$t89£,O0© ?hfto,<x» 5,724,000 872,000 3,442,000 ki9n$,m 3,936,000 2,306,000 9*0S?,W 4,600,000 *00,3A,00®j/ at the price of 99.2 at the average price of 98.H1 TREASURY DEPARTMENT 'nfr-fflWBBffl|-"'y>IWT-fH I _ r " W ~ WASHINGTON, D.C EEIEASE A. M. NEWSPAPERS, Tuesday, August h, 1959. A-592 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 May 7, 1959, and the other series to be dated August 6, 1959, which were offered on July 30, were opened at the Federal Reserve Banks on August 3. Tenders were invited for $1,000,000,000 or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows: RANGE OF ACCEPTED COMPETITIVE BIDS? Price High Low Average 182-day Treasury bills maturing February hs I960 91-day Treasury bills maturing November 5, 1959 99.21*7 99.226 99.231 Approx. Equiv. Annual Rate Price 98.128 a/ 98.106 98.111 2.9792 3.062^ 3.0432 Approx. Equiv. Annual Rate 3.7032 3.7462 3.7372 a/ Excepting two tenders totaling $61,000 5o percent of the amount of 91-day bills bid for at the low price was accepted 68 percent of the amount of 182-day bills bid for at the lowprice was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: Accepted District Applied For Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St, Louis Minneapolis Kansas City Dallas San Francisco $ 23,1*63,000 l,38l,03l*,000 26,654,000 25,210,000 11,203,000 29,97U,000 178,833,000 22,1*31,000 12,617,000 32,151*,000 ll*,7U*,000 £6,91*8.000 33,1*53,000 679,9#*,000 11,65U,000 21*, 910,000 11,203,000 27,87l*,000 113,193,000 22,1*31,000 12,609,000 22,1#*,000 13,7ll*,000 l*6,9l*l*,000 $1,815,235,000 $1,000,093,000b/: TOTAIS Applied For Accepted $ $ 3,161,000 71*8,01*0,000 10,754,000 27,235,000 872,000 1*,392,000 8U,81*5,000 5,136,000 3,370,000 10,508,000 1*, 600,000 52,982,000 $955,895,000 2,l*9l*,000 280,820,000 5,754,000 5,721*, 000 872,000 3,1*1*2,000 1*7,715,000 3,936,000 2,306,000 9,087,000 1*,600,000 33,61*l*,OOQ &00,394,OOOc/ y Includes $20l*,93l*,000 noncompetitive tenders accepted at the average price of 99.231 y Includes $1*6,018,000 noncompetitive tendersaccepted at the average price of 98.111 wm«ttar# jgllW I, iHt * * 5^7 Jjj; *1.7 M~ai» «f mm mm*- Mk- mi m$m $m AiUm $h& sale of t431M,<mfr^ mmily ^mmsry M lis ^ ^ - ^ *&-fcfc the M3Jk i&am> £&tM A u # m 2$. Aa isdt&t&w&l &sgmft @# $1 billie© *U1 1»tavern*mmm^k Km mlm m% mmtlm ®i m twrtm? mmm ut mm ttefc ^Bticipttl^feWHlvirMM* &&%&& aajr % 1959, &u« Hut first ntff ^111 tae&it* the is$u«j «ff && _stftfttaii»i $80© aftJU&Bft #f fMtaqr %US# ititA 4ng^t %$* fmi&mm fw the ffex Mtl&ip&tim. Mils ¥13.;;- INK M M * * * * m MX&AB% IfEtaM** mmm for mm fi.rat fwnr at vfEHef»Oflja«v/«i# i/5/99 lj TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Wednesday, August 5, 1939. A-593 The Treasury Department plans to raise approximately $1.7 billion of new cash. It will raise $700 million through the sale of additional weekly Treasury bills beginning with the bill issue on August 13. An additional amount of $1 billion will be borrowed through the sale at auction of a further amount of the Tax Anticipation Treasury bills dated July 8, 1959, due March 22, i960. The first step will include the issue of an additional $200 million of 91-day bills on August 13. Tenders for the Tax Anticipation bills will be received on August 13 for payment on August 19. On the basis of present estimates this completes the Treasury's financing needs for the first quarter of the current fiscal year. 0O0 m3 !«VWK^>:*«*:«:-»:O:WK'KII " <nq •«. o c 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 accru until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No- 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2SKmxXM_0_Qg_S_ decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorp rated banks and trust companies and from responsible and recognized dealers in i ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanie an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $ 200,000 or less for the additio bills dated May 14, 1959 , ( 91 days remaining until maturity date on November 12, 1959 ) and noncompetitive tenders for $100,000 or less for the P^ 182 &&£ -day bills without stated price from any one bidder will be accepted in full md at 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 August 15, 1959 y _n cash or other immediately available funds or in a like face amount of Treasury bills mat ing August 15, 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 msooQMHmxH Cy/ 7 TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, August 6. 1959 5BT The Treasury Department, by this public notice, Invites tenders for two series of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts, f l_3r cash and in exchange for Treasury bills maturing August 15, 1959 of $ 1,400,927,000 , as follows: , in the amount 91 -day bills (to maturity date) to be issued August 15, 1959 , in the amount of $1,200,000,000 , or thereabouts, representing an additional amount of bills dated May 14, 1959 , and to mature November 12, 1959 , originally issued in the amount of $ 400,206,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated August 15, 1959 , and to mature February 11, 1960 -p_tj_ "" £_*$ The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face will be payable without interest. They will be issued in bearer form only, and i denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closir Daylight Saving hour, one-thirty o'clock p.m., Eastern/k&safl&SKX time, Monday, August 10, 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 112 TREASURY DEPARTMENT W" r V - - ~ T - - ^ ~ — . " .• ••fi-Ml-m,;i.,JM...mi'fvmii.a .., ~ B - • K " , „ _ _ _ WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, August 6, 1959. A-594 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 August 13, 1959* in the amount of $1,400,927,000, as follows: 91-day bills (to maturity date) to be issued August 13, 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated May 14, 1959, and to mature November 12,1959, originally issued in the amount of $400,206,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated August 13, 1959, and to mature February 11, i960. 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, August 10, 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 v/ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any oi 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 May 14, 1959, (91 days remaining until maturity date on November 12, 1959) and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 13, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 13, 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 hereunde need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, Federal prescribe of theirReserve issue. the terms Bank Copies of orthe Branch. of Treasury the circular bills may and begovern obtained thefrom conditions any -3- 113 The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, an loss from the sale or other disposition of Treasury bills does not have any spec 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 such bills are sold, redeemed or otherwise disposed of, and such bills are exclu from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his incom 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 eithe 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 - 114 3Egga&xxx%?_£ on the printed forms and forwarded in the special envelopes which will be suppli by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders excepl for their own account. Tenders will be received without deposit from incorporate banks and trust companies and from responsible and recognized dealers in investm securities. Tenders from others must be accompanied by payment of 2 percent of t face amount of Treasury bills applied for, unless the tenders are accompanied by express guaranty of payment by an incorporated bank or trust company. All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bill additional Daylight Saving of this/issue, until after one-thirty o'clock p.m., Eastern/g«S_S®g_aa time, Thursday &__4 August 15, 1959 . Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $ 200,000 or less without stated price from any one bidder will be accepted in full at the average price (in thre decimals) of accepted competitive bids. Payment of accepted tenders at the price offered must be made or completed at the Federal Reserve Bank in cash or other i diately available funds on August 19, 1959 , provided, however, any qualified Pig depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so no fied by the Federal Reserve Bank of its District. 1 1 ^ Momxxxx and represent an additional amount of bills dat July 8, 1959, to mature March 22, 1960, origina issued in the amount of $5,005,203,000. The ad vtional and original bills will be freely interchangeab! TREAStf^Y DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Monday, August 10, 1959 The Treasury Department, by this public notice, invites tenders for (to matttrity date), August 19, 3 $ 1,000,000,000 , or thereabouts, of 216 -day Treasury bil^s/ to be i3Sued/on a ]£__) _£s$x discount basis under competitive and noncompetitive bidding as^t^ereinafter provided The bills of this series will be designated Tax Anticipation Series^ tsl_C8DcSBdxb_X5be »:» 9 .-J .• •:•:•:•:•'•;••••••••«.••••••••'•••:•••••;•••;••«,-»,,i,, »;* •*:<>,->•#;•.-»», •:.: »:«,<>,-». .*> AWVRXVMVtVWVKV XX__uU_9w 'uUu'uuuwn __cx They will be accepted at face value in payment of income and profits taxes due on March 15, fn\ f< 1960 , and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1960 , income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before March 15, 1960 , and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, 1960 , to the District Director of x$_fcjc Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closir Daylight Saving hour, one-thirty o'clock p.m., Eastern/___x__ta_L time, Thursday, August 15, 1959 Tenders will not be received at the Treasury Department, Washington. Each tender, must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. 3., 99.925. Fractions may not be used. It is urged that tenders be made TREASURY DEPARTMENT '^6 WASHINGTON, D.C RELEASE A. M. NEWSPAPERS, Monday, August 10, 1959. A-595 The Treasury Department, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 2l6-day Treasury bills (to maturity date), to be issued August 19, 1959, on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series and represent an additional amount of bills dated July 8, 1959, to mature March 22, i960, originally issued in the amount of $3,005,203,000. The additional and original bills will be freely interchangeable. They will be accepted at face value in payment oi income and profits taxes due on March 15, I960, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, I960, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen_days before , March 15, i960, and receiving receipts therefor showing the iace amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, 1?6Q, to the District Director of Internal Revenue for the District in which such taxes are payable. The bills will be issued f e a r e r 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 ^^r^a^?^eS up to the closing hour, one-thirty o'clock p m , Eastern Daylight Saving time, Thursday, August 13, 1959. Tenders will not be received at the Treasury Department, Washington Bach ^ d e r must be for an even multiple of $1,000, and in the case of competitive rpnriA-r.- t-h^ r,r>irf> offered must be expressed on the basis oi luu, tenders the P^ce oiierea ™ ^ P K , 99 925. Fractions may not with not more than three decimals, e. g., **•*<;£• n r > i n t p d forms and be used. It is urged that tenders be made.on the printed forms ana forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. ^ofunfinnq will not be permitted to submit T without tenders Others deposit except than for from banking their incorporated own i n sa tJ ^c °u u^ banks ^ sV _lenders ^and f t trust s will t companies cobe received and from - 2 responsible and recognizee* dealers in investment securities. Tendei 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 bar or trust company. All bidders are required to agree not to purchase or to sell, o to make any agreements with respect to the purchase or sale or other disposition of any bills of this additional issue, until after onethirty o'clock p.m., Eastern Daylight Saving time, Thursday, August 13, 1959. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000,or less without stated price from any one bidde will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the price offered must be made or completed at the Federal Reserve Bank in casl or other immediately available funds on August 19, 1959, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The income derived from Treasury bills, whether interest or gaii 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 tl Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, bi are exempt from all taxation now or hereafter imposed on the principi 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 consideratioi as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only difference between the price forthe sue during gain bills, amount orwhether the actually loss. taxable on received original yearthe for either issue which upon or the on sale return subsequent or redemption is made, purchase, aspaid at ordinary maturity and *_ X . - 3 Treasury Department Circular No. 4l8, Revised, and this ^i??Jr,Sr^^84th? t6mS °f the Treasur"y biHs and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. oOo < i M X -- w BU&ISE _. H. K M S P A H O S , __„„ ___ _„_ „ liMit eveniog tte*t th* tmtm**** teat &* mmri** mt Trmmmvry M i l s , mm mmrAmrn to be «m additional issue *f tte® bills **t*& m y U*, 1959, mm\ It* other seriei to be dated August 13, 1959, *Hi«fc wwro ©f*«r*l ©a August W t opened at the Federal *ecerve Bank* on August 10. Tenders wear* ia»i1»4 far •1,180*000,000, mr thftreabouta, ©f 91-«*jr M i l s *** £«* #100,000,000, ©* thara&bouta, of 112-day b i U a . it* detail, of the two eeriee are *« follow* Ut*4*y frwMwy Mil* bill* U m t 0? ACOEPTIB n*4sy MtoriXmZ February H , I960 COMPETItlVE BIESt Ml ^ , AfPfSPOE. BfgttllN Approx. Equiv« Trim Hi«h I** 99.2fct 99.190 Aytmit**^* ff.twk *M— %\.9$9A 3.t&t$> 98 .U$6 96.128 98.135 3.667* 3.IOI36 3*690£ 81 percent of the aaouat of 9i~d*y M i l s bid for at the l w price 67 percent of theftatomttof 182-day M i l s bid for at the low price TOTAL Til&StSS APPLP5D FOR Am ACCF,?TiD BT FCDEHAL HESHIfE DISTRICTS: M*rt* Am>lied For Boston # 33,^,000 1,380,731*000 32,199,000 20,1*27,000 IftHf Tork Philadelphia CJlev#lJu__ Atlanta St. Ixmia Kizmeapelia mmm* City Dallas Smn frmmi*mm wum # S/ ^*** *}&fifflm jm\R0m0 33,3^5,000 206t3lt2,000 17,lhlf000 15,720,000 36,220,000 20,761,000 11,866,066,000 n griff"! .S Includes #138,983,000 Include* 8Mi,7y,000 lC\ Ammm&tmd 23,81*8,000 77u,68l,0OO 32,199,000 20,1*27,000 AsollAd \for Aeenitad • 7,583,000 I 7,583,000 690,511,000 272,1*01,OCX) 12,528,000 7^70,000 17,205,000 15,791,000 iz9m»ooo a.,67^,000 lf67lt,000 5,561,000 32,355,000 ii,768,000 71,3^7,000 158,31*2,000 hS ,397,000 3,86^,000 17,2U,O0O 3,l6k,080 2,891,000 15,720,000 2,871,000 11,110,000 38,220,000 6,673,000 11,200,026,000*/ mi$ m,<m ^0,033,00%^ 9 3,336,000 19,761,000 f,3|f,O00 tm tendera accepted hi*im at the9average price of 99*% tmtmtmrm accepted at the average pries of 98.11 TREASURY DEPARTMENT WASHINGTON, D.C. 119 HEE&ASE A. M. NEWSPAPERS, Tuesday, August 11, 1959. A-5°6 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 May 14, 1959, and the other series to be dated August 13, 1959, which were offered on August 6 were opened at the Federal Reserve Banks on August 10. 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: High Low Average 91-day Treasury bills maturing November 12, 1959 182-day Treasury bills maturing February 11, I960 Approx. Equiv. Price Annual Rate Approx. Equiv* Price Annual Rate 99.242 2.9992 99.190 99.204 98.146 "3.6672 98.128 3.7032 98.135 3.6902 3.2042 3.15Q2 81 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 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco $ 33,848,000 1,380,731,000 32,199,000 20,427,000 12,584,000 33,345,000 206,342,000 17,241,000 15,720,000 38,220,000 20,761,000 54,648,000 TOTALS $1,866,066,000 Applied For Accepted 23,848,000 774,681,000 32,199,000 20,427,000 12,584,000 32,355,000 158,342,000 17,241,000 15,720,000 38,220,000 19,761,000 54,648,000 $ 7,583,000 690,511,000 12,528,000 17,205,000 1,674,000 5,568,000 71,247,000 3,864,000 2,891,000 11,110,000 3,336,000 47,768,000 $ 7,583,000 272,401,000 7,470,000 15,792,000 1,674,000 4,768,000 45,397,000 3,164,000 2,871,000 6,673,000 3,336,000 28,904,000 $1,200,026,000a/ $875,285,000 $400,033,OOOb/ Accepted if Includes $238,983,000 noncompetitive tenders accepted at the average price of 99.2C y Includes $44,743,000 noncompetitive tenders accepted at the average price of 98.135 STATUTORY DEBT L1MITATIC. «OF ___________ _ .. ton Aug. 11,1959 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of 0j»*if«j0""/"uA_^ptesu5 guar of that Act, and the face am «,n of obligations guaranteed as to principal and interest by the United Mates i r anteed obligations as may be held by the Secretary of the Treasury), "shall not exceed m the j w e j * &*>•U ^ r e n t » re. (Act of June 30, 1959; U.S.C., title 31, sec. 757b), outstanding at any one ° ^ / 5 n ^ ! X t £ 5 « ° ft h e h o l d " demption value of any obligation issued on a discount basis which is " ^ e ^ ^ ^ ^ . ^ ^ T ^ y J ^ a t during the period shall be considered as its face amount." The Act of June 30, 1959 (P.L. 86-74 ffiC^fiffi^J^Hy increased by beginning on July 1, 1959 and ending June 30, I960, the above limitation ($285,000,000,000) shall be temporar y $10,000,000,000. ... . , . The following table shows the face amount of obligations outstanding and the face amount which can still be issue, under this limitation: $295,000,000,000 Total face amount that may be outstanding at any one time OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills '. $37,029,384,000 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 33,843,030,000 2 ? . 3**) . 9 6 0 . 0 0 0 $ 98,213,374,000 84 , 793 , 696 , 250 50,221,261 .l(y 182,823,500 8.317.730.000 143,515,510,925 8,267,275,000 15,736,735,000 20,057,110,000 ,,,44,061,120,009 285,790,004,925 ••• ^ 3 ^ , 20 / , yjy 50,845,816 Ofl, J7O 1,989,250,000 . 2 , 040 , 937 . 23> 288,265,150,078 Total Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 108,531,800 Matured, interest-ceased 1.747.175 Grand total outstanding Balance face amount of obligations issuable under above authority ~„_rto_ 110,278,975 288,375,429,053 6,624,570 ,7^7 Reconcilement with Statement of the Public Debt ....„5na5T...j?....! ?.?!*. (Date) (Daily Statement of the United States Treasury Ju3X.3i.t....3r7.2S ) (Date) Total gross public debt Guaranteed obligations not owned by the Treasury. Total gross public debt and guaranteed obligations. Deduct - other outstanding public debt obligations not subject to debt limitation. K-597 288,681,726,543 HQ,^0*"'^ 288,792,005,518 4l6t576*465 288,375,429,053 STATUTOItY D E B T LIMITATION AS0F J "*' " _ J _ U L Y 3 l , 1959 x A u g , -L-^-^1959 Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority of that Act, and the face am - >«»nr of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $285,000,000,000 (Act of June 30, 1959; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option,of the holder shall be considered as its face amount.*' The Act of June 30, 1959 (P.L. 86-74 86th Congress) provides that during the period beginning on July 1, 1959 and ending June 3G, I960, the above limitation ($285,000,000,000) shall be temporarily increased by $10,000,000,000. The, following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation: Total face amount that may be outstanding at any one time «p 2 9 5 , 0 0 0 , 0 0 0 , 0 0 0 OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Wa;th;nt>ron Treasury bills $37,029,384,000 Certificates of indebtedness. Treasury notes BondsTreasury _ * Savings (current redemp. value) Depositary. Investment series Special FundsCertificates of indebtedness Treasury notes Treasury bonds Total interest-bearing Matured, interest-ceased Bearing no interest: United States Savings Stamps Excess profits tax refund bonds Special notes of the United States: Internat'l Monetary Fund series Total _ 33,843,030 , 000 27.340.960.000 $ 98,213,374,000 84,793,696,250 50,221,261,175 182,823 , 500 8.317.730.000 143,515,510,925 8,2o7,275,000 15,736,735,000 20 , 0 5 7 , H O , 000 4 4 . 06l. 120 . 000 285,790,004,925 434,207,939 50,845,816 O*4_.,.}90 1,989,250,000 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 108,531,800 Matured, interest-ceased 1.747.175 Grand total outstanding , , Balance face amount of obligations issuable under above authority 2 .040 . 937. 214 288,265,150,078 110.278.975 288,375,^*29,053 6 , 62*1, 5 7 0 , 9*^7 Reconcilement with Statement of the Public Debt ....„.^±^...^.!....„.<.r?Z (Dnte) (Daily Statement of the United States Treasufy,.„...,.J.Uiy...3.1.t...-):$55 ) <Pato> rw UutstandingTotal gross public debt Guaranteed obligations not owned by the Treasury. Totul gross public debt and guaranteed obligations Deduct - other outstanding public debt obligations not subject to debt limitation A-597 288,681,726,543 110,? fO, ) f j 2 8 8 , 7 9 2 , 0 0 5 , jlo 4l6 . 5 7 ^ . 465 288,375,429,053 122 - 3 from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The "bills are subj to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular Wo. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their Issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2 decimals, e. g., 99.925. Fractions may not be used. 1 0 Q 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 Breeches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $ 200,000 or less for the addition bills dated May 21, 1959 , ( 91 days remaining until maturity date on November 19, 1959 ) emd- noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 20. 1959 y lu cash or ]p_2_$ other immediately available funds or in a like face amount of Treasury bills maturing August 20, 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 TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, Augugt 15, ,1959 • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,600,000.000 y or thereabouts, for cash and in exchange for Treasury bills maturing August 20. 1959 y *_» of $1,^01,625,000 y a s Allows: 91 -day bills (to maturity date) to be issued August 20, 1959 in tne amount y m in the amount of $1,200,000,000 y or thereabouts, represent_$X) ing an additional amount of bills May 21. 1959 in they and to mature November 19, 1959 dated , originally issued amount of $400,187,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated August 20, 1959 , and to mature February 18. 1960 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., &stem/flj_nte* time, Monday. Alight. 17 f IQSQ .Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders t price offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, Thursday, August 13, 1959. A-598 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 August 20, 1959* in the amount of $1,401,625,000, as follows: 91-day bills (to maturity date) to be issued August 20, 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated May 21, 1959* and to mature November 19, 1959* originally issued in the amount of $400,187,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated August 20, 1959* and to mature February 18, i960. 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__tQ_ the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving time, Monday, August 17* 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99-925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated May 21, 1959* (91 days remaining until maturity date on November 19, 1959) and noncompetitive tenders for $100,000 or less for thelo2 -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 August 20, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing August 20, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or Interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or oOo loss. Treasury Department Circular No. 4l8, Revised, and this notice, Federal prescribe of theirReserve issue. the terms Bank Copies of orthe Branch. of Treasury the circular bills may and begovern obtained thefrom conditions any 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 VALUEt Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the case- of the following countries? United Kingdom, France, Netherlands, Switzerland* Belgium, Germany, and Italy* Country of Origin United Kingdom . . . . . Canada . France . . . . British India Netherlands Switzerland . . . . . . . Belgium Japan . . . . . . . . . . China . . . . . . . . . . Egypt Cuba . Germany Italy Established TOTAL QUOTA 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 2f Included in total imports, column 2. Prepared in the Bureau of Customs. Total Imports Sept. 20, 1950. to Established 33-1/3* P* Total Quota 1,4*8,473 239,690 1,441,152 648 75,807 50,304 - — — - 24,935 6,ffftf) 1,810,630 - 22,747 14,796 12,853 Sept, 20, 195# to A u g m t 10_ 1959 1,441,152 - 643 _. . - 25,443 7,088 24,935 6,580 1,599,886 1,473,315 TREASURY DEPARTMENT Washington, D. C. cf IMMEDIATE RELEASE Thursday, August 1^. 1QR9, A-599 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, 1%8 - August 10. 1959 Country of Origin Egypt and the AngloEgyptian Sudan Peru British India China Mexico Brazil Union of Soviet Socialist Republics Argentina , ,Haiti , Ecuador Established Quota Imports 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 Honduras — 10,064 8,883,259 618,723 475,124 5,203 237 9,333 327,702 Country of Origin Paraguay , Colombia Iraq , British East Africa ... Netherlands E. Indies . Barbados l/Other British W. Indies Nigeria 2/0ther British W. Africa ji/other French Africa .., Algeria and Tunisia ... Established Quota Imports 752 752 871 124 195 2., 240 71,388 21,321 5,377 16,004 689 1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. 2/ Other than Gold Coast and Nigeria. 3/ Other than Algeria, Tunisia, and Madagascar. Cotton 1-1/8" or more Imports August 1, 1959 - Auguat 1071959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation 1-3/8" or more 1-5/32" or more and under 1-3/8" (Tanguis) 1-1/8" or more and under 1-3/8" Imports 39,590,778 5S£3W77S 1,500,000 1,500,000 4,565,642 4,565,642 TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE Thursday, August 13. lqqq. A-599 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, 1953 , August 10, 1959 Country of Origin Egypt and the AngloEgyptian Sudan .... Peru British India China Mexico Brazil Union of Soviet Socialist Republics Argentina .Haiti , Ecuador Established Quota 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 Imports Country of Origin Established Quota Honduras Paraguay Colombia 10,064 Iraq ._ British East Africa ... 8,883,259 Netherlands E. Indies . 618,723 Barbados l/0ther British W. Indies 327,702 Nigeria 2/0ther British W. Africa 3/Other French Africa ... Algeria and Tunisia ... 752 - 871 124 195 2,240 71,388 21,321 5,377 16,004 689 l/ 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, 1959 - August 10, 1959 Established Quota (Global) - 45,656,420 Lbs. Staple Length Allocation Imports 1-3/8" or more 39,590,778 1-5/32" or more and under 1-3/8" (Tanguis) 1,500,000 1-1/8" or more and under l-^/ft" _._«?£-_*__-• 3975907773 1,500,000 __-5£5_£__? ^2CQTTON WASTES (In pounds) r F ? L C A R D ^ S T R I P S maderfrom cotton having * staple of less than 1-3/16 Inches In length, COlffiER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE_ Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or mors in staple- length in the- case- of the following countries! United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italyj „ . _ „ M • . " ' : Established ; Total Imports j Established s Imports Country of Origin , TOTAL QUOTA i Sept. 20, 1958, to , 33-1/3* of : Sept. 20, 1958 — — ~——: ____. * August ID, 1,9^9 ?. Total Quota t to August 10, 1959 K±ngd0m ^ • ' • • " 4 ^23,457 Canada . . . . . . . . . 239,690 France . . . . . . . . .• 227*420 British India. . . . . . . 69,627 Netherlands . . . . , . . 68,240 Switzerland , . . 44,388 Belgium ... . . 38,559 Japan. . . . . . . . . . . 341,535 China . . . . . . . . . . 17,322 Egypt • • • • • • . , . . 8,135 Cuba 6,544 Germany ......... 76,329 5,482,509 Italy . _2L262 1/ Included in total imports, column 2. Prepared in the Bureau of Customs. 1*^8*473239,690 Q^ 5 0 304 J _. _, _. _,, -,, 1,441,152 75.807 22 747 14*796 12*853 ' ' _ _. mm 24,935 1,810,630 25,443 1,599,886 1'ffi V!&i 1,441,152 XJ " 4_A ^ " "" o7 Q ,c 1,473,315 *ffi35 1/ 1 ?Q TREASURY DEPARTMENT Washington, D» C« MHM Skamm '•^mJ' A-600 IMMEDIATE RELEASE Thursday, August 13, 1959. PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF DNMANUFACTUBID LEAD AND ZINC CHARGEABLE TO THEftUCTASESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 195» QUARTERLY QUOTA PERIOD « July 1, 1959 - September 30, 1959 IMPORTS - July 1, 1959 . August 8, 195? Country of Produotion Australia ITEM 392 ITEM 391 i i Lead bullion or base bullion, 1 1 load in pigs and bars, lead t Lead-bearing ores, fluo dust,: dross, reol&imad lead, scrap * and mattes : lead, anti&onial lead, antls : aonial scrap lead, type metal, : t all alloys or combinations of : t lead n.s.p.f. ~iQoai^rly~__0tei t~<_^^rly~Quota 1 Dutiable. Lead Imports 1 Dutiable Lead Iaparta (Pounds) (Pounds) """" 10,080,000 8,073,987* 23,680,000 ITEM 394 ITEM 393 T t t t : Zino-bearing ores of all kind3,: Zino in bleaks, pigs, or slabs} : except pyrites containing not : old and vorn-out zino, fit 1 oyer Jfc of zino x only to bo .©manufactured, zino t : ' dross, and zino skimmings j ___. : iQiartarly (kiota sQuarterly Quota. 1 Dutiable Una Imports : By Weight Imports " (Pounds) (Pounds) 20,402,921 5,440,000 Belgian Congo Belgium and Luxemburg (total) 5,040,000 Bolivia. Canada 3,736,510* Italy 36,880,000 Peru 16,160*000 12,217,011* On. So. Africa 14,880,000 12,830,532* 4,109,352* 37,840,000 16,635,208 3,600,000 3,600,000 15,967,424 12,880,000 4,316,835 70,480,000 43,389,759 6,320,000 2,505*955* 3,760,000 35,120,000 21,178,873 681,998 15,760,000 9,040,713 Yugoslovia All other foreign oountries (total) 7,520,000 - 13,440,000 13,428,886* 15,920,000 5*370,832 66,480,000 57,858,489 Mexioo 370,380* 6,560,000 Imports as «£f August 10. PBSPAKSO XN TH2 BURSAU 0_ CUSTOMS 851,781 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 TREASURY -Iv^-Hik-i**1 Washington, D. G. A-600 U&30IATE RELEASE Thursday, August 13, 1959. PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UNMANU?ACTURSD LEAD AND ZINC CHARG3ABLS TO THEfiUOTASESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 195* QUARTERLY QUOTA PERIOD • July 1, 1959 - September 30, 1959 IMPORTS - Jbly 1, 1?59 - August 8, 1959 ITEM 394 ITEM 393 ITEM 392 V Lead bullion or base bullion, t lead in pigs and bars, lead Ziuo-baaring ores of all kind3,: Zino ia blocks, pigs, or slabs; Lead-bearing ores, fluo dust,I dro3s, realaiaad load, scrap except pyrites containing not : old and worn-out zino, fit and cattes : lead, antlsonial load, antloyer 3^ of zino I only to be reaanufactured, zino : aoaial scrap load, typs setal, : dross, and zino skimmings ; all alloys or combinations of »tfezartsriy Quota lead n.s.p.f. :Quarterly _uota iGiartarly Biota tQuarterly Quota Imports ; By Weight Imports Inrporta : Dutiable Zinc j Dutiable. Lead Isaports i Dutiabla Load ^Pounds) (Pounds) (Pounds) (Pounds) ITEM 391 Country of Production Australia 10,080,000 8,073,987* 23,680,000 20,402,921 5,440,000 Belgian Congo Belgium and Luz9_burg (total) Bolivia Canada 5,040,000 7,520,000 4,109,352* 37,840,000 16,635,208 3,600,000 3,600,000 70,480,000 43,389,759 6,320,000 2,505,955* 35,120,000 21,178,873 3,760,000 681,9^8 3,73^,510* 66,480,000 13,440,000 13,428,886* 15,920,000 5,370,832 57,858,489 Italy Mexico 36,880,000 Psru 16,160,000 12,880,000 4,316,835 On. So. Afrioa 14,880,000 12,830,532* 12,217,011* s Imports as c? August 10. 15,967,424 15,760,000 9,040,713 Yugoslori* All other foreign oountries (total) 370,380* 6,560,000 851,781 6,080,000 6,080,000 17,840,000 17,840,000 6,080,000 6,080,000 TREASURY DEPARTMENT Washington, D. C. A-601 M E D I A T E RELEASE Thursday, August 13, 1959. The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1959, to August 1, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955t Commodity Established Annual Quota Quantity Buttons 765,000 Unit : Imports of . as of Quantity ; August 1, 1959 Gross Cigars 180,000,000 Number Coconut oil U03,200,000 Pound Cordage 6,000,000 Pound (Refined Sugars (Unrefined Tobacco 5,850,000 * 355,003 3,225,2iiU 79,957,688 2,721*, 556 32,892,000* l,90l±, 000,000 Pound l,25U,O30,00O* Pound Information furnished by Department of Agriculture. 5,235,21*2 09 TREASURY DEPARTMENT Washington, D. C. A-601 IMMEDIATE RELEASE Thursday, August 13, 1959. The Bureau figures showing August 1, 1959, lished pursuant of Customs announced today the following preliminary the imports for consumption from January 1, 1959, to inclusive, of commodities for which quotas were estabto the Philippine Trade Agreement Revision Act of 1955: • Unit « Imports as Established Annual . of . °f Quota Quantity » Quantity « August 1, 1959 Commodity Buttons •••• .... 765,000 Gross Cigars 180,000,000 Number Coconut oil 1*03,200,000 Pound Cordage .............9.. 6,000,000 Pound (Refined Sugars (Unrefined Pound 3,225,21*1* 79,957,688 2,721*, 556 32,892,000* l,90l*,000,000 Tobacco ......•.*•».*... * 355,003 1,251*, 030,000* 5,85o,ooo Pound Information furnished by Department of Agriculture. 5,235,21*2 y _• 2- Commodity Period and Quantity : Unit : of :Quantity Imports as of August 1. lffi osolute Quotas; sanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter)... ye, rye flour, and rye meal ... utter substitutes, including butter oil, containing k5% or more butterfat ••••• ung Oil Imports through August 10. 12 mos. from August 1, 1958 12 mos from August 1, 1959 1,709,000 Pound 1,709,000 Pound 3,0K August 5 August 31, 1959 Canada Other Countries 6,606,443 134,825 Pound Pound Quota Fil Calendar Year 1,200,000 Pound Quota Fil 16,633,591 2,231,680 702,000 Pound Pound Pound 14,037,3^ Quota Fil Quota Fil Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries 1,532,623 TREASURY DEPARTMENT Washington, D. C. A-602 IMMEDIATE RELEASE Thursday, August 13, 1939. The Bureau of Customs announced today preliminary figures showing the imports for consumption of the commodities listed below within quota limitations from the* beginning j of the quota periods to August 1, 1959, inclusive, as follows: Commodity Period and Quantity Unit of Quantity Imports as of August 1. Iff Tariff-Rate Quotas: Cream, fresh or sour ..... Calendar Year 1,500,000 Whole milk, fresh or sour Calendar Year 3,000,000 Gallon Cattle, 700 lbs. or more each (other than dairy cows) ..... Gallon U July 1, 1959 Sept. 30, 1959 120,000 Head 14,65 12 mos. from April 1, 1959 200,000 Head 29,09 Fish, fresh or frozen, filleted, etc., cod, haddock, hake, pollock, cusk, and rosefish Calendar Year 36,919,874 Pound Quota Fil Tuna fish Calendar Year 52,372,574 Pound 26,535,17 White or Irish potatoes: Certified seed Other 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 79,208,75 17,340,79 Walnuts ... Calendar Year 5,000,000 Pound 2,600,75 Peanut Oil 12 mos. from July 1, 1959 80,000,000 Pound Calendar Year 13,500,000 Pound Quota Fil May 19 - Dec. 31, 1959 350,000 Pound 152,61 Cattle, less than 200 lbs. each Woolen fabrics Woolen fabrics (Presidential Proclamation 3285 - TD 54845) .. 1/ - Imports for consumption at the quota rate are limited to 27,689,905 pounds during the first nine months of the calendar year. (continued) TREASURY DEPARTMENT Washington, D. C. A-602 DIATE RELEASE rsday, August 13, 1959. The Bureau of Customs announced today preliminary figures showing the imports for romption of the commodities listed below within quota limitations from the* beginning foe quota periods to August 1, 1959, inclusive, as follows: Commodity Period and Quantity Unit of Quantity Imports as of August 1. 1959 95 .ff-Rate Quotas: im, fresh or sour Calendar Year 1,500,000 Gallon .e milk, fresh or sour Calendar Year 3,000,000 Gallon le, 700 lbs. or more each ,her than dairy cows) July 1, 1959 Sept. 30, 1959 120,000 Head 14,654 12 mos. from April 1, 1959 200,000 Head 29,093 L, fresh or frozen, filleted, :., cod, haddock, hake, pol:k, cusk, and rosefish Calendar Year 36,919,874 Pound Quota Filled? i fish Calendar Year 52,372,574 Pound 26,535,173 •e or Irish potatoes: tified seed er •••••• 12 mos. from Sept. 15, 1958 114,000,000 36,000,000 Pound Pound 79,208,750 17,340,795 uts ... Calendar Year 5,000,000 Pound 2,600,753 tut Oil 12 mos. from July 1, 1959 80,000,000 Pound Calendar Year 13,500,000 Pound May 19 - Dec. 31, 1959 350,000 Pound le, less than 200 lbs. each . en fabrics en fabrics (Presidential clamation 3285 - TD 54845) •• Quota Filled 152,613 Imports for consumption at the quota rate are limited to 27,689,905 pounds during the first nine months of the calendar year. (continued) - 2 - Commodity Period and Quantity : Unit : Imports s of s as of : Quantity : August 1^ lj •bsolute Quotas: eanu.ts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter) :ye, rye flour, and rye meal .... tatter substitutes, including butter oil, containing 45$ or more butterfat ...... ung Oil •••••••, • Imports through August 10. 12 mos. from August 1, 1958 12 mos from August 1, 1959 1,709,000 Pound 1,709,000 Pound August 5 August 31, 1959 Canada Other Countries 6,606,443 134,825 Pound Pound Calendar Year 1,200,000 Pound 16,633,591 2,231,680 702,000 Pound Pound Pound Feb. 2, 1959 Oct. 31, 1959 Argentina Paraguay Other Countries 1 xj y -. 2 - A RELEASE A . M . NEWSPAPERS, fiie Treasury l}®pa_i3„«»t mimmmm iy U — la»t!-evenin|-"'lliat tenders for an additional" uiwuv/fuw^wu, or wtmMmts, of the lax Anticipation Series treasury bills dated July 8, 1959, to mature March 22, I960, were opened at the Federal teserve Banks '-? August 13-. the i&idiMoiiAi amount of bill®, whieh were offered on August 10, will be issued on August 19 (216 days to ^aturit/ datej. i*m, Pound Hie details of the aa^tlftaal leiue"a.re as follows? Pound fetal applied for - 13,216,431,000 total momptM ••••• - 1,000,1S8,00#. ( I Q D . I ^ M 1232,481,000 entered on a *noneonpetitiv® basis and accepted in ^ ,ott:i * full At the 'avenge pric©1 shown below; ' t' i ftang© of aeeepted eojspetitive bids* High &J * ^ o. (Excepting otm tender of 1300,000) - 97.810 Equivalent rate of discount approx. 3.6$Q% per annum - 9?»?$2 v ^ » -••-*« n , --if, ••• „ 3.747$ »^-'n Average - ft .768 S b * « 195,1 if n « 3.719$ « « ^ 31. 1959 14,03?, (47 percent of the amount 'bi&'fer at the low price was accepted) - • • r Afaguay ._, -• ; ' Quota t: QUG;^ Fi Pound Other Countries ?02#0G0 fotAl Federal teseanr® fatal Boston,n August 10* lew York Philadelphia Cleveland ticlsaond Atlanta Chicago Ft. hmim Minneapolis Kansas City Ballas San Francisoe TOTAL f l3o,?S5,ooo I 1,298,712,000 11*3,982,000 31*5,086,000 77,063,000 125,356,000 410,148,000 81,088,000 120,125,000 84,136,000 19lt,660,QG0 205»32Q_0QQ 49,i55,ooo 299,342,000 96,577,000 35,626,000 39,257,000 64,1*26,000 92,691,000 25,738,000 51,325,000 51,371,000 152,360,000 te_32O_000 ^3,216,1*31,000 QF| a,ooo,i88,ooo TREASURY DEPARTMENT ________ WASHINGTON, D RELEASE A. M. NEWSPAPERS, Prlfoy, An^st 14> 1959. A_.503 The Treasury Department announced last evening that tenders for an additional $1,000,000,000, or thereabouts, of the Tax Anticipation Series Treasury bills dated July 8, 1959, to mature March 22, I960, were opened at the Federal Reserve Banks on August 13. The additional amount of bills, which were offered on August 10, will be issued on August 19 (216 days to maturity date). The details of the additional issue are as follows: Total applied for - #3,216,431,000 Total accepted - 1,000,188,000 (includes $232,481,000 entered on a noncompetitive basis and accepted in full at the average price shown below) Range of accepted competitive bids? (Excepting one tender of $300,000) -*& - 97.810 Equivalent rate of discount approx. 3.650$ per annum Um - 97.752 » « « tt it 3.747$ n » Average • 97«?68 « « « « « 3.719$ « « (47 percent of the amount bid for at the low price was accepted) Federal Reserve Total Total District Bo-toi $ 130,755,000 $ 49,l55,000 New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTAL 13,216,431,000 $L,000,l88,000 Applied for 1,298,712,000 143,982,000 315,086,000 77,063,000 125,356,000 410,148,000 81,088,000 120,125,000 84,136,000 194,660,000 205,320,000 Accepted 299,342,000 96,577,000 35,626,000 39,257,000 64,426,000 92,691,000 25,738,000 51,325,000 51,371,000 152,^60,000 1^2,320.000 T:6 /UW HGUttAl i, St. H M S M P S K , The trmmmry mpmrtmmtt mtmmmmti Xmt evening Vm*% tHe teaiew far tot series of frmmry M i l s , ene series to *m m mMitimmX Umm of the felUs <isted my 21, W&9 «*l tfe* • « * » series to be 4tto6 August 10, lfftt *itfc w*t*» •ffar*d on August 13, were opened At tot FeierAl leserve Banks on totfitt 17. Tenders were lavitoi t*r n9Wm$®m9*m9 or mmrmU^M, of $A«4*y M i l s m& far 1400,000,000, er to**totooto, mf USi««qr Hills* Tft* details *f toe two series mm mm tmXAmmt copmirxfi fl*^ir TiwMnuT fett&s Lew tsnm 4nnual*Hate rnmmf SJHV •tv Ttofc f%ila4t#ljiii*€l#veiAni AftlM** m* Umim BJjMttfftli* mmm ilty 0aUt* isa Francisco TOTALS $*m$ Fries Apprsst* ssjaSv-* late f$,0?0 9B.03S 3.748$ 3.H8$ 3.782$ 3Mt$ totoltog t§#00O,IK» low pri«# was accepted #f 9A*4my few* feU fir •% the *ff l i t - * ? bills bid for at the AMOEB & & * & i Price ff.117 Bttftptlit 4 laatptiac k pmmmAt of the psreest of the TORU. bills •ttortoi Fe^sry U . 1*0 BIBS* vm Am AcentsD IT mBM& intra Planum t mm^ Applied Far Accepted 24,046,000 S3ff$64,000 ff,44§,000 33,909,000 15,?58»OG0 24,154,000 110,307,000 14,012,000 9»iJ>5_ooo 31,165,000 14,423,000 i $,3x7,000 I 5,3X7,000 298,762,000 1,547,000 lt,tl3,000 JM>MS® 8,975,000 mo>fr1»iffl» 9Hi9*n m • -., asmflff*. # 14,045,000 Xfl0*,f*MQO ££,466,00© 3I#K9»000 l&tSMOO 14,154,000 ll*,3O?»ie0 %9m9m® 11,853,4X2,00® ©All,0©5 ,@@0 6,$l7»*Q» 12,293,000 m,@00 t,f31,000 61,514,000 f,?§4,@0@ l,?7$f000 n9m9mm ^100,411,000^ m9m 8,931,000 3$,7|4,000 1,784,000 X,®TS#00® n,n®#000 1,975,000 mm9m9omf Includes $212,272,000 xieneempetitlve tenders accepted at the average price of 99.lj Xatladt* 136,091,000 noncompetitive tenders accepted at the Average prise of 98.018 7 b }y? - f/ TREASURY DEPARTMENT 1 QQ •__ y y WASHINGTON, D.C. RELEASE A. M. N&ISPAFERS, Tuesday, August 18, 1959. A-604 The Treasury Department announced lest evening that the tenders for two series of Treasury bills, one series to be an Additional issue of the bills dated Kay 21, 1959, and the other series to be dated August 20, 1959, which were offered on August 13, were opened At the Federal Reserve Banks on August 17* 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 ere A S followst 182-day Treasury bills 91-day Treasury bills nmn OP ACCEPTED maturing February 18, I960 maturing November 19, 1959 COMPETITIVE BIBS* High Low Average a/ of 30 42 Price Approx. Equiv, Annual Rate Price Approx. Equiv* Animal Rat® 99.152s/ 99.117 99.136 3.355$ 3.493$ 3.417$ 98.105_}/ 98.070 98.088 3.748$ 3.818$ 3.782$ Excepting 4 tenders totaling $6,000,000 Excepting 4 tenders totaling $620,000 percent of the amount of 91-day bills bid for at the low price was accepted percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted Applied For Boston New Tork Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS \ 24,046,000 1,458,564,000 29,666,000 33,909,000 35,958,000 24,854,000 144,307,000 14,012,000 9,255,000 31,165,000 14,423,000 53,253,000 $l,853,fcl2,OO0 24,046,000 839,564,000 29,666,000 33,909,000 15,958,000 24,854,000 110,307,000 14,012,000 9,255,000 31,165,000 14,423,000 53,253,000 $1,200,412,000c/ \ 5,317,000 648,005,000 6,567,000 12,283,000 901,000 2,931,000 6i,5i4,ooo 2,784,000 1,975,000 11,235,000 2,975,000 33,780,000 $790,267,000 i Accepted \ 5,317,000 298,762,000 1,567,000 12,283,000 901,000 2,931,000 35,774,000 2,784,000 1,975,000 11,119,000 2,975,000 23,780,000 $400,l68,OOCM/ Includes $212,272,000 noncompetitive tenders accepted at the average price of 99.136 Includes $36,091,000 noncompetitive tenders accepted at the average price of 98.088 i, vm m m* situ L. :$mm$ •»»»»«««»»»»«M»»M|<MIWMM*«»»—« IIIIIMB i n n mi 11 nniliiMWWl—immmmmk teed securities Vm f oXXcaftng trtatfletiMk worm m&m in direct and jptMtf tottoswtsweiittm ^ I I M T Awwtotato tat utter ftst-tuate XSSfi ..............•»..».*.*•..*.*•.*.*.*•*.******** ........*.*.*....**.*******•-•*****.*************** •#•#*••»**•»•*• 226,100.00 32,194,900.00 <i«mimli«»uiiiii II m iifiwun i i> m i n i m i TREASURY DEPARTMENT 1 4 1 WASHINGTON, D.C. y IMMEDIATE RELEASE, Wodnooday, Jul_f l_ir-if59 & -ft-^f^- During J*»e- 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 ^ 9 I 8 O 9 J 5 0 Q . 0O0 142 TREASURY DEPARTMENT WASHINGTON, D.C IMMEDIATE RELEASE., Monday, August 17. 1939. A-605 During July 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 $32,194,900. oOo Q DRAFT HffiSS RELEASE - - V U IHCOME TAX COHVEHTION DISCUSSI0JS3 WITH UNITED ARAB REPUBLIC Technical discussions are to be held in the near future between officials of the Governments of BBM^and the United States looking toward the conclusion of a tax convention between the two countries for the avoidance of double taxation of income and the elimination of tax obstacles to the international flow of trade and investment. If bases for agreement are found, drafts of the proposed agreement will be prepared and submitted to the respective governments for consideration vith a viev to signing. Interested parties in the United States desiring to present their vievs on the scope and content of the proposed agreement may submit information and suggestions to Mr. Fred C. Scribner, Jr., Under Secretary of the Treasury, Treasury Department, Washington 25, D.C, * * * TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Monday, August 17, 1939. A-606 INCOME TAX CONVENTION DISCUSSIONS WITH UNITED ARAB REPUBLIC Technical discussions are to be held in the near future between officials of the Governments of the United Arab Republic and the United States looking toward the conclusion of a tax convention between the two countries for the avoidance of double taxation of income and the elimination of tax obstacles to the international flow of trade and investment. If bases for agreement are found, drafts of the proposed agreement will be prepared and submitted to the respective governments for consideration with a view to signing. v Interested parties in the United States desiring to present their views on the scope and content of the proposed agreement may submit information and suggestions to Mr. Fred C. Scribner, J Under Secretary of the Treasury, Treasury Department, Washington 253 D. C. 0O0 - 3 - -"tv^ »>:*:ct:o:«^i>/#>'M: 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 n.n taxation now or hereafter imposed on the principal or intere thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be inte Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are cluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whe on original issue or on subsequent purchase, and the amount actually received ei upon sale or redemption at maturity during the taxable year for which the return made, as ordinary gain or loss. Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. - 2' • - [ x "'x y decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incorpo rated banks and trust companies and from responsible and recognized dealers in in ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanied an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submit- ting tenders will be advised of the acceptance or rejection thereof. The Secretar of the Treasury expressly reserves the right to accept or reject any or all tende in whole or in part, and his action in any such respect shall be final. Subject t these reservations, noncompetitive tenders for $200,000 or less for the additiona bills dated May 28, 1959 W& November 27, 1959 f ( 92 days remaining until maturity date on ~WmV ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the res tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 27, 1959 , in cash or other immediately available funds or in a like face amount of Treasury bills matu ing August 27, 1959 Cash and exchange tenders will receive equal treatment. B_3 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 -; A f _. ~r i HK_KXX}0ffl_H______3 TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, AugustJ>QT 1QRQ The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,600,000,000 y or thereabouts, for cash and in exchange for Treasury bills maturing August 27, 1959 i in the amount of $ 1,595,606,000 , as follows: tH 92-day bills (to maturity date) to be issued August 27. 1959 y in the amount of $ 1,200,000,000 y or thereabouts, representing an additional amount of bills dated May 28, 1959 , —w and to mature November 27, 1959 , originally issued in the sr to be freely interchangeable. of $ 599,979.000 , the additional and original bills 182 -day bills, amount for $ 400,000,000 , or thereabouts, to be dated August 27. 1959 , and to mature February 25, 1960 . 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 Daylight Saving hour, one-thirty o'clock p.m., Eastern/%%&&%¥& time, Monday, August 24, 1959 pEEJi 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 " RELEASE A. M. NEWSPAPERS, Thursday, August 20, 1959. A-607 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 August 27, 1959* In the amount of $1*395*606,000, as follows: 92-day bills (to maturity date) to be issued August 27. 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated May 28, 1959* and to mature November 27* 1959*originally issued in the amount of $399*979*000, the additional and original bills to be freely interchangeable. 182 -day bills, for $400,000,000, or thereabouts, to be dated August 27* 1959* and to mature February 25* i960. 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-rthirty o'clock p.m., Eastern Daylight Saving , time, Monday, August 24, 1959. x Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e. g., 99-925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit"from Incorporated banks and trust companies and from responsible and recognized dealers in Investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an Incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and^price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated May 28, 1959* ( 92 days remaining until maturity date on November 27*1959) and noncompetitive tenders for $100,000 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 August 27* 1959* in cash or other immediately available funds or In a like face amount of'Treasury bills maturing August 27, 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 0O0 return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of bills and thefrom conditions Federal of theirReserve issue. Bank Copies orthe Branch. of Treasury the circular may begovern obtained any AO FOR IMMEDIATE RELEASE WEDNESDAY, AUGUST 19, 1959 *¥ y A-608 Treasury Secretary Anderson today commended Nelson P. Rose, General Counsel of the Treasury Department for his "many outstanding services". Mr. Rose's resignation effective October 1, was accepted by President Eisenhower on Tuesday, August 18. "You have every right to take great pride in the many accomplishments you have achieved during your service in the Federal Government", Secretary Anderson said. Mr. Rose also announced today that he plans to return to the practice of law in Cleveland with his former firm of Jones, Day, Cockley & Reavis. Mr. Rose was Chief Counsel of the Internal Revenue Service from February 13, 1957, to January 27, 1958, since which time he has been General Counsel of the Treasury Department. Mr. Rose was graduated from Princeton University and later Harvard Law School and admitted to the Ohio Bar in 1936 with the highest mark of all candidates in the State bar examination that year. Mr. Rose joined the staff of the War Production Board in late 1941 and in May, 1942, he was commissioned a 1st Lieutenant in the Army. He served in the Office of Quartermaster General and the Army Service Forces and was discharged in 1946 with the rank of Lieutenant Colonel and awarded the Legion of Merit. Mr. and Mrs. Rose, the former Elizabeth Newberry Hitchcock of Cleveland, have two sons. Attached are copies of correspondence between President Eisenhower, Secretary Anderson, and Mr. Rose. FOR IMMEDIATE RELEASE WEDNESDAY, AUGUST 19, 1959 Treasury Secretary Anderson today commended Nelson P. Rose, General Counsel of the Treasury Department for his "many outstanding services'1. Mr. Rose's resignation effective October 1, was accepted by President Eisenhower on Tuesday, August 18. "You have every right to take great pride in the many accomplishments you have achieved during your service in the Federal Government", Secretary Anderson said. Mr. Rose also announced today that he plans to return to the practice of law in Cleveland with his former firm of Jones, Day, Cockley & Reavis. Mr. Rose was Chief Counsel of the Internal Revenue Service from February 13, 1957, to January 27, 1958, since which time he has been General Counsel of the Treasury Department. Mr. Rose was graduated from Princeton University and later Harvard Law School and admitted to the Ohio Bar in 1936 with the highest mark of all candidates in the State bar examination that year. Mr. Rose joined the staff of the War Production Board in late 1941 and in May, 1942, he was commissioned a 1st Lieutenant in the Army. He served in the Office of Quartermaster General and the Army Service Forces and was discharged in 1946 with the rank of Lieutenant Colonel and awarded the Legion of Merit. Mr. and Mrs. Rose, the former Elizabeth Newberry Hitchcock of Cleveland, have two sons. Attached are copies of correspondence between President Eisenhower, Secretary Anderson, and Mr. Rose. THE WHITE H O U S E WASH INGTON August 18, 1959 Dear M r . Rose: With much regret, but in keeping with your request, I accept your resignation as General Counsel of the Treasury to be effective on October 1. You have carried your responsibilities first as Chief Counsel of the Internal Revenue Service and then as General Counsel of the Treasury Department with distinction. You have done a great deal to strengthen the Chief Counsel's Office in the Internal Revenue Service and as Treasury's General Counsel to help in the formulation of basic Treasury policies. It is fortunate for the nation that men of your competence, integrity and devotion have been willing to serve in public office, often at great personal sacrifice. As you return to private life, you can take well-deserved pleasure and satisfaction from the record of your outstanding service to the United States. You have m y personal thank3 for a job well done. To you and Mrs. Rose go my sincere good wishes for the future. Sincerely, DDE The Honorable Nelson P. Rose General Counsel of the Treasury Department of the Treasury Washington 25, D. C. THE SECRETARY OF THE TREASURY WASHINGTON 152 AUG 19 1959 Dear Nelson: As you know, the President yesterday accepted with much regret your resignation as General Counsel of the Treasury, to be effective on October 1st this year. We in the Treasury shall miss, more than you know, your presence in our midst. Both as Chief Counsel of Internal Revenue and General Counsel of Treasury, you provided outstanding service to the Treasury and to the Nation. You have made this contribution out of great ability and integrity which was unfailingly enriched by goodnatured common sense. You have every right to take great pride in the many accomplishments you have achieved during your service in the Federal Government. As much as we regret to see you go, it is realized that your family and business considerations now make it essential that you return to private practice. Because of the high regard in which you are held by your countless friends in and out of the Government, your offer to serve in the future, if the occasion should arise, is most appreciated. To you and Mrs. Rose go the sincere wish of all of us for the best of success and good health in the years ahead. Warmest regards, Sincerely, /s/ Bob Honorable Nelson P. Rose General Counsel Treasury Department Washington 25, D. C. THE GENERAL COUNSEL OF THE TREASURY 153 WASHINGTON August 1^, 1959 Dear Mr. Secretary: As you know, my commitment to Mr. Humphrey when he was Secretary of the 2*reasury was that I would serve as Chief Counsel of the Internal Revenue Service for two years, beginning in March 1957. In January 1958, when the President on your recommendation appointed me to my present position, you and I agreed that the change of assignments did not extend my commitment, but that you were free to ask for an extension if you desired it. Later you requested that I remain throughout the present session of this 86th Congress, and I agreed to do so. Xou are aware of the family and business obligations which are uppermost in my reluctant decision that I must ask to be released to return to private life. It now appears likely that the Congress will adjourn not later than the middle of September. Accordingly, in line with our recent discussions, I tender to you my resignation with the request that you transmit it to the President. I have asked that it become effective October 1. It is difficult to express to you my feelings as this assignment draws to a close. All of us who have tried to serve you are unanimous in recognizing not only your special capacity to inspire loyalty and team-effort on the part of your associates, but also the impressive individual ability and widespread regard which enable you to make a unique contribution to your country. I shall not have a more rewarding experience than my personal and official association with you and with the distinguished group around you. With my warm good wishes and profound respect, Faithfully yours, /s/ Nelson P. Rose Honorable Robert B. Anderson Secretary of the Treasury ••* C A J. ^" •' FOR IMMEDIATE RELEASE THURSDAY, AUGUST 20, 1959 / y-^ AJohn P. Weitzel, Assistant General Counsel of the Treasury horn boon uXjiii1 a^arhonii as Deputy to the Secretary of the Treasury. Mr. Weitzel will^peFform duties in the area of national security affairs and/also be responsible to the Secretary for special assignments in legal and other departmental matters. Mr. Weitzel has been with the Treasury since April 1953 when he was appointed Special Assistant to the Assistant Secretary of the Treasury. He served in that position until October 1955 when he was appointed Assistant to the Under Secretary of the Treasury. Since December 1956 he has been Assistant General Counsel of the Treasury. Born in Pittsburgh, Pennsylvania, on August 24, 1923, Mr. Weitzel studied at Arnold School, Pittsburgh, and Deerfield Academy, Deerfield, Massachusetts, and served in the Air Force in World War II. He was graduated from Yale University with an AB degree in 1946, and received an LL.B degree from Harvard Law School in 1949. He was admitted to the Massachusetts Bar in 1949. Prior to coming to the Treasury he practiced law with' the firm of Herrick, Smith, Donald, Ftxrley^etftdr Ketchum in Bostoc Massachusetts. ofMr. Weitzel is a member of the American Bar Association and the American Judicature Society. He is also a member of the Vestry of the Church of the Epiphany, Washington, D. C. Mr. Weitzel is the son of Mr. and Mrs. Albert P. Weitzel of Weekapaug, Westerly, Rhode Island. TREASURY DEPARTMENT •vr__ur.^yj^^iHi!wj^.i^^ mm mi WASHINGTON, FOR IMMEDIATE RELEASE, Thursday, August 20, 1959* A-6Q9 Treasury Secretary Anderson today appointed John P. Weitzel, Assistant General Counsel of the Treasury, as Deputy to the Secretary,of the Treasury. Mr. Weitzel will perform duties in the area of national security affairs and also be responsible to the Secretary for special assignments in legal and other departmental matters. Mr. Weitzel has been with the Treasury since April 1953 when he was appointed Special Assistant to the Assistant Secretary of the Treasury. He served in that position until October 1955 when he was appointed Assistant to the Under Secretary of the Treasury. Since December 1956 he has been Assistant General Counsel of the Treasury. Born in Pittsburgh, Pennsylvania, on August 24, 1923, Mr. Weitzel studed at Arnold School, Pittsburgh, and Deerfield Academy, Deerfield, Massachusetts, and served in the Air Force in World War II. He was graduated from Yale University with an A.B. degree in 1946, and received an LL.B. degree from Harvard Law School in 1949. He was admitted to the Massachusetts Bar in 1949. Prior to coming to the Treasury he practiced law with the firm of Herrick, Smith, Donald, Farley & Ketchum in Boston, Massachusetts. Mr. Weitzel is a member of the American Bar Association and the American Judicature Society. He is also a member of the Vestry of the Church of the Epiphany, Washington, D. C. Mr, Weitzel is the son of Mr. and Mrs. Albert P. Weitzel of Weekapaug, Westerly, Rhode Island. 0O0 -L. W ^ IMMEDIATE RELEASE, Friday, August 21, 1959 - A-610 Treasury Secretary Anderson today announced the resignation effective August 31, of Arch M. Cantrail, Chief Counsel of the Internal Revenue Service since January, 1958. Mr. Cantrall is returning to his law firm of Stathers and Cantrall in Clarksburg, West Virginia, where he had engaged in tax law practice from 1925 to, 1958. Secretary Anderson, in announcing Mr. Cantrall's decision to leave the Service, praised the Chief Counsel for his effective direction of IRS legal activities. The Chief Counsel also serves as Assistant General Counsel of the Treasury Department. During his tenure, Mr. Cantrall gave steady emphasis to the importance of a strong legal staff, nation-wide, to deal with the great variety of legal issues involved in administration of the federal tax laws. He also instituted a program to increase taxpayer understanding of Internal Revenue litigation procedures. Mr. Cantrall has been prominent in American Bar Association activities and those of other legal organizations, as well as in Clarksburg and West Virginia civic and social service activities. 0O0 TREASURY DEPARTMENT WASHINGTON, D.C. IMMEDIATE RELEASE, Friday, August 21, 1959* A-610 Treasury Secretary Anderson today announced the resignation effective August 31* of Arch M. Cantrall, Chief Counsel of the Internal Revenue Service since January, 1958. Mr. Cantrall is returning to his law firm of Stathers and Cantrall in Clarksburg, West Virginia, where he had engaged in tax law practice from 1925 to, 1958. Secretary Anderson, in announcing Mr. Cantrallfs decision to leave the Service, praised the Chief Counsel for his effective direction of IRS legal activities. The Chief Counsel also serves as Assistant General Counsel of the Treasury Department. During his tenure, Mr. Cantrall gave steady emphasis to the importance of a strong legal staff, nation-wide, to deal with the great variety of legal issues involved in administration of the federal tax laws. He also instituted a program to increase taxpayer understanding of Internal Revenue litigation procedures. Mr. Cantrall has been prominent in American Bar Association activities and those of other legal organizations, as well as in Clarksburg and West Virginia civic and social service activities. 0O0 1 Ck p*? IBLBASS A. M. M W « « A M H W f , August 25, 1959* MtMPMMlMWMk •-^-*«#l«l*ll«lltft>«l»««««l«l«»»<«*l|l^^ • The Treasury announced last evening that the tender* for two series c Treasury bills, an additional issue of the M i l s dated May 28, 1959, and the other series to be dated August 27, 1959, which were offered on August 20, w, opened at the F on august 2lu Tenders were invited for 11,200,0(3 or thereabouts, of 92-day bills and for 6liOO,OOO,O0G, or thereabouts, ef 182-day bill The details of the EAIGS OF ACCVTKD bill© 182-day Treasury bills COKRTITITB B U S ? November 27. 1959 11 [II»IIJUI^IIIUIM»I>I»IM«I<»«^IWB»«»H^^ Prise a/ g/ fl 77 HI 99.0$b a, 99.001 99.023 Low Fries Annual Bats iittmmfmmmmmmm 97.936 b / 97-630 * 97.901 3* 3.909* 3*821$ Annual Bats l*,292% li.li>2* accepting one tender of t * w , Iieeeptlng one tender of tlOO, percent of tee amount of 92-4sy bills bid forat the leu pries was aec< for at the low pries was accepted psrcent of the »imnt of 162-da m~r:tyy A P F I U P •istriet Atlanta Chicago St*. !«TOia km ACCEPTED B Y mmmi wateHVE BisfEietSt Applied for V Mm York Philadelphia Clsveland \jr\ 20,C*V4-,' 1,507,788,000 33,552,000 21,866,000 12,296,000 22,935,000 li*f88l,000 11,600,000 25,191,000 9,580,000 61i#285t000 t 16,601,1 805,268,000 18,552,000 21,886,000 12,296,000 22,935,000 114,381,000 11,600,000 25,191,000 9,580,000 5 it,? 83.000 t 2,Jt82i,000 58i*,2891,000 8,017,,000 13,b294,000 1,153,,000 2,988,,000 hh,9hB,,000 2,798,,000 2,969,,000 5,20b,,000 2,21*9,,000 22,686,,000 I 2,U82,000 303,139,000 7,997,000 13,^9,000 l,lS3,ooo 2,988,000 it2,9li8,000 ja $i» 2,798,000 lamas City 2,969,000 Balls® 5,20l»,000 2,2li9,O0O TOTALS 12,686,000 |l,961t,663,000 H,200,U3,000e/ $693,212,000 Wt00,0i2,000^ c/ Includes 1188,792,000 tenders accepted at the price IJSIiCOBI of 99.0i 3/ Includes ?3S,6OO,O0O noneempetltiv© tenders accepted at the average price of 97.90] »iiinrn nfli n 1111111 iimiiii n&mimmtmtmm t9m9mmmt» mm IIIUMWIIIBMWWIW Q TREASURY DEPARTMENT WASHINGlTdlsLD.C. RELEASE A. M* NEWSPAPERS, Tuesday, August 25, 1959* A-611 The Treasury Department aniaounced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated Hay 28, 1959, and the other series to be dated August 2? P 1959, which were offered on August 20, were opened at the Federal Reserve Banks on August 2lu Tenders were invited for $1,200,000,000, or thereabouts, of 92-day bills and for 6^00,000,000, or thereabouts, of 182-day bills* The details of the two series are as follow© s RANGE OF ACCEPTED 92-day Treasury bills 182-day Treasury bills COMPETITIVE BIDS* maturing November 27, 1959 maturing February 25, I960 Price Annual Bate Price Appro*. EquiT. Annual Rate 9mm»mmmmmmmmmmmmmmmmwmmmmm. High Low Average 99.05k _/ 99.001 99.023 3. 3. 3. 97.936 b / 97.830 97.901 1.083* U.292* U.152* *f Excepting one tender of „ V Excepting one tender of $100,000 28 percent of the amount of 92«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 ASD ACCEPTED BI FEDERAL RESERVE DISTRICTS? District Applied For Applied For Accepted $ 2,1*82,000 581*,289,000 8,017,000 13,1*29,000 1,153,000 2,988,000 l*J*,9l*8,000 2,798,000 2,969,000 5,201,000 2,21*9,000 22.686,000 #693,212,000 % 2,1*82,000 303,139,000 7,997,000 13,1*29,000 1,153,000 2,988,000 1*2,91*8,000 2,798,000 2,969,000 5,20l*,000 2,21*9,000 12,686,000 $UOO,Ol42,OOOd/ 9mWmmmmm^mtmmJmmt*M!Mmmuamvmmm1iaMaar»u> Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St, Louis Minneapolis Kansas City Dallas San Francisco TOTALS $ 28,601,000 1,507,788,000 33,552,000 21,886,000 12,296,000 22,935,000 212,068,000 lU,88l,000 11,600,000 25,191,000 9,580,000 6U,285,000 6l,961i,663,000 $ 18,601,000 805,268,000 18,552,000 12,296,000 22,935,000 185,068,000 lij,88l,000 11,600,000 25,191,000 9,580,000 51t»285_000 $1,200,1143,0002/ mi iiln Jh M mmmwtmlCmmmm—» mmmmmmmmmmm%mmmmmmmfmm\mmmmmm9mm at the$188,792,000 average price of 99.023 y Includes noncompetitive termers _ ^ . , y Includes $35,600,000 noncompetitive tenders accepted at the average price of 97*901 - 3Mr. and Mrs. Weatherbee, and their three children, reside at 9302 Second Avenue, Silver Spring, Maryland. - 2 In 1943, Mr. Weatherbee began ni^mllllary serj^tfe With the U.S. Navy and served as a supply and disbursing officer on duty both in the United States an4 in Europe. inactive dutyldSi 1946, an He was placed on •the prosent time is a Commander in the U.S. Naval Reserve. lamed rx^±ufr^ot Mr. Weatherbee was ja^ J the War Assets Administrationyln 19^6^ the same year he joined the State Department where he served in yariouss^top departmental adm3_nl^tr^Ti6n^a^ Jffhea^-he wgRjaypd^^a Bureau Ex£cutJ_v_3j_^^ UU the Post Office D^partmonfri—-He—^rsr»^rnsoi'vliiSg=:^s>Beputy Assistant Postmaster General tffltrofleeroten,rvAnderson announced his present appointment^ While at the State Department, Mr. Weatherbee received the Meritorious Service Award, and ho roeToivod ngfrional rooog-sdJ;lon *a-s—fe-he recipient of the Arthur S. Flemming Award from the U. S. Junior Chamber of Commerce as one of the ten outstanding young men in the Federal Government in 1956. Th1 n nwnrd wnr. Jn T^riogn|tinn of his aspiqf^npfl in thn nnhnhH rhmnnf nni JQfmag^m^n*" of thb first Bureau of Personnel in the Post Office Departmentf s history, and f ogHfcnglemauLation of Hoover Commission recommendations Mr. Weatherbee was born at Bangor, Maine, <D$ February 9, 1918. He attended the public schools of Bangor, and received his A.B. degree >In 1939^from the University of Maine. He is a member of the honorary societies Phi Beta Kappa, Phi Kappa Phi, Sigma Mu Sigma and of the social fraternity Beta Theta Pi. ::•) (GENERAL V E R S I O N ) DRAFT PRESS RELEASE IMMEDIARE RELEASE, z. Secretary of the Treasury Robert B . Anderson today announced President Eisenhower's approval of the appointment of M r . Artemus E . Weatherbee. »f ^ ^ ^ ^ p ^ ^ g i Mary1fir"j^ as Administrative Assistant Sec^*§tary of the Treasury Department. M r . Weatherbee, in Federal_>srviee f o r the past twenty years,—lias lj fcfig mo,sr,:j_£__j Deputy Assistant Postmaster General, ) lf£ will succeed M r . William W . Parsons, w h o has resigned effective August 31* to become Vice President of the System Development Corporation, Santa Monica, California. / In commenting on M r . Weatherbee ! s appointment, Secretary /Anderson said, "I am pleased to b e able to announce the appointment of M r . Weatherbee, one of the Government's most dedicated career public servants, to the top career civil service position in the Treasury Department." M r . Weatherbee began his career with the Federal Government in 1939 as one of 4 0 college g r a d u a t e selected annually b y the National Institute of Public Affairs f o r an internship in the Federal Service. F^ahb-WMli *ri?gp positions with the Farm Credit A chisf placement and appointment ^ ^ e held a number of tionjfwhoro ho booasae^ n 1942,, >eeame director of personnel for the National War Labor (Stabilization) Board. TREASURY DEPARTMENT •B__nmBgn«________________B^ wwsmm W A S H I N G T O N , D.C. IMMEDIATE RELEASE, Tuesday, August 25, 1959. A-612 Secretary of the Treasury Robert B. Anderson today announced President Eisenhower's approval of the appointment of Mr. Artemus E. Weatherbee, Deputy Assistant Postmaster General, as Administrative Assistant Secretary of the Treasury Department. Mr. Weatherbee, in Federal Government career service for the past twenty years will succeed Mr. William W. Parsons, who has resigned effective August 31, to become Vice President of the System Development Corporation, Santa Monica, California. Mr. Weatherbee began his career with the Federal Government in 1939 as one of 40 college graduates selected annually by the National Institute of Public Affairs for an internship in the Federal Service. He held a number of positions with the Farm Credit Administration and in 1942 became director of personnel for the National War Labor (Stabilization) Board. In 19433 Mr. Weatherbee entered the U.S. Navy and served as a supply and disbursing officer on duty both in the United States and in Europe. He was placed on inactive duty as a Lieutenant in 1946, and now is a Commander in the U.S. Naval Reserve. Mr. Weatherbee was with the War Assets Administration briefly in 1946. In the same year he joined the State Department where he served in various top departmental administration and personnel positions where his last assignment was Acting Director of Personnel. In 1954 he became Bureau Executive Director of the Post Office Department and later Deputy Assistant Postmaster General. While at the State Department, Mr. Weatherbee received the Meritorious Service Award, and was a recipient of the Arthur S. Flemming Award from the U.S. Junior Chamber of Commerce as one of the ten outstanding young men in the Federal Government in 1956. Mr. Weatherbee was born at Bangor, Maine, Feb. 9> 1918* He attended the public schools of Bangor, and received his A.B.degree with honors in 1939 from the University of Maine. He is a member of the Honorary societies Phi Beta Kappa, Phi Kappa Phi, Sigma Mu Sigma and of the social fraternity Beta Theta Pi. Mr. and Mrs. Weatherbee, and their three children, reside at 9302 Second Avenue, Silver Spring, Maryland. 0O0 164 - 3- from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are sub 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 inte 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 whi Treasury bills are originally sold by the United States is considered to be in Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a of discount at which bills issued hereunder are sold is not considered to accr until such bills are sold, redeemed or otherwise disposed of, and such bills a eluded from consideration as capital assets. Accordingly, the owner of Treasur bills (other than life insurance companies) issued hereunder need include in h income tax return only the difference between the price paid for such bills, w on original issue or on subsequent purchase, and the amount actually received upon sale or redemption at maturity during the taxable year for which the retu 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 o the circular may be obtained from any Federal Reserve Bonk or Branch. - 2- decimals, e. g., 99.925- Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incor rated banks and trust companies and from responsible and recognized dealers in ment securities. Tenders from others must be accompanied by payment of 2 percen the face amount of Treasury bills applied for, unless the tenders are accompan an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by t Treasury Department of the amount and price range of accepted bids. Those submi ting tenders will be advised of the acceptance or rejection thereof. The Secret of the Treasury expressly reserves the right to accept or reject any or all te in whole or in part, and his action in any such respect shall be final. Subject these reservation^, noncompetitive tenders for $ 200,000 or less for the addit bills dated June 4, 1959 , ( 91 days remaining until maturity date on December 5, 1959 ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in fu at the average price (in three decimals) of accepted competitive bids for the tive issues. Settlement for accepted tenders in accordance with the bids must b made or completed at the Federal Reserve Bank on September 5, 1959 , in cash o other immediately available funds or in a like face amount of Treasury bills ma ing September 5, 1959 * Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturin 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 lo gaffl&j3_xa« JL w w TREASURY DEFARTiMEI<T Washington RELEASE A. M. NEWSPAPERS, Thursday, August 27, 1959 ' T i l — — — - i i ii T 11. | i i| 11 l i i i n n l ) i 4-U? 111 P$ The Treasury Department, "by this public notice, invites tenders for two serie; of Treasury bills to the aggregate amount of &1.500.000.000 > °r thereabouts, f cash and in exchange for Treasury bills maturing September 3, 1959 , in **»« am of $ 1,500,795,000 , as follows: 91 -day bills (to maturity date) to be issued September 5. 1959 , in the amount of $ l.ioo ooo.OQO > or thereabouts, represent- ££ ing an additional amount of bills dated June 4, 1959 , and to mature December 3, 1959 , originally issued in the 5_3^ amount of $ 400,244.000 to be freely interchangeable. , the additional and original bills 182 -day bills, for $ 400,000.000 , or thereabouts, to be dated (11) Ipl* September 5, 1959 , and to mature March 5, 1960 jtijr . l±£3x 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma value). Tenders will be received at Federal Reserve Banks and Branches up to the clos Daylight Saving hour, one-thirty o'clock p.m., Eastern/&m&&&& time, Monday, August 51, 1959 Tenders will not be received at the Treasury Department, Washington. Each tende must be for an even multiple of $1,000, and in the case of competitive tenders price offered must be expressed on the basis of 100, with not more than three RELEASE A. M. NEWSPAPERS, Thursday, August 27, 1959. A-613 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 3,1959, in the amount of $1,500,793,000, as follows: 91-day bills (to maturity date) to be issued September 3* 1959, in the amount of $1,100,000,000, or thereabouts, representing an additional amount of bills dated June 4, 1959. and to mature December 3, 1959, originally issued in the amount of $400,244,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated September 3, 1959,and to mature March 3, I960. 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 ^uE^9_J_i__.e closing hour, one-thirty o'clock p.m., Eastern Daylight Saving , time, Monday, August 31, 1959. . Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, *with not more than three decimals, e. g., 99-925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any o: all tenders, in whole or in part, and his action in any such respec shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated June 4, 1959, (91 days remaining until maturity date on December 3,1959) and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 3, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 3,1959. 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 hereunde need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent*purchase, and the amount actually received either upon oOo sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury prescribe Federal of theirReserve issue. Department the terms Bank Copies of or Circular the Branch. of Treasury the circular No. bills 4l8,may Revised, and begovern obtained and thefrom this conditions any notice; TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, 'Tuesday, September 1, 1959. A-61U The Treasury Department announced last evening that the tenders for tvo series of Treasury bills, one series to be an additional issue of the bills dated June 4, 1959, and the other series to be dated September 3, 1959, which were offered on August 27, were opened at the Federal Reserve Banks on August 31. Tenders were invited for $1,100,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabouts, of 182-day bills. ..he details of the two series are as follows s 182-day Treasury bills 91-day Treasury bills ANGE OF ACCEPTED maturing March 3, I960 maturing December 3, 1959 OMFETITIVE BIDS* h Price Approx. Equiv. Annual Rate Price Approx* Equiv, Annual Rate 99.050 a/ 4.3462 High 3. 97.803 W 98.995 4.5022 Low 3. 97,72k 99.017 4.468* Average 3. 97.7la {/ Excepting one tender of $700,000 >/ Excepting one tender of $165,000 [6 percent of the amount of 91-day bills bid for at the low price was accepted (8 percent of the amount of 182-day bills bid for at the low price was accepted K)TAL TENDERS APPLIED FOR AND ACCEPTED BI FEDERAL RESERVE DISTRICTS t District Applied For Accepted Applied For Accepted $ 5,983,000 5,983,000 2it,795,000 229,185,000 600,01(5,000 68U,106,000 5,103,000 10,103,000 2U,092,000 22,002,000 2U,602,000 30,79lt,000 1,157,000 1,157,000 19,217,000 3,882,000 3,882,000 21,090,000 81»,983,000 102,503,000 168,120,000 3,169,000 3,169,000 17,260,000 2,81»3,000 3,295,000 9,590,000 6,201, ,000 26,215,000 7,UoU,ooo 2,125,000 12, 320,000 2,125,000 $L,100,007,00Cte/: $807,915,000 $400,283,000d/ 33,337,000 62.098,000 U3,337,000 / Includes $205,853,000 noncompetitive tenders accepted at the average price of 99.017 y Includes $38,567,000 noncompetitive tenders accepted at the average price of 97.741 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas SanTOTALS Francisco 24,795,000 1,391,116,000 34,092,000 30,794,000 19,217,000 21,090,000 183,120,000 17,265,000 9,590,000 28,215,000 12,320,000 $1,836,712,000 65,098,000 - 3- from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are sub to estate, inheritance, gift or other excise taxes, whether Federal or State, are exempt from all taxation now or hereafter imposed on the principal or inte thereof by any State, or any of the possessions of the United States, or by an local taxing authority. For purposes of taxation the amount of discount at whi Treasury bills are originally sold hy the United States is considered to be in Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a of discount at which bills issued hereunder are sold is not considered to accr until such bills are sold, redeemed or otherwise disposed of, and such bills a eluded from consideration as capital assets. Accordingly, the owner of Treasur bills (other than life insurance companies) issued hereunder need include in h income tax return only the difference between the price paid for such bills, w on original issue or on subsequent purchase, and the amount actually received upon sale or redemption at maturity during the taxable year for which the retu 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 o the circular may be obtained from any Federal Reserve Bank or Branch. - 2 17: decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Breaches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incor rated banks and trust companies and from responsible and recognized dealers in ment securities. Tenders from others must be accompanied by payment of 2 percen the face amount of Treasury bills applied for, unless the tenders are accompan an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by t Treasury Department of the amount and price range of accepted bids. Those submi ting tenders will be advised of the acceptance or rejection thereof. The Secret of the Treasury expressly reserves the right to accept or reject any or all ten in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $200.000 or less for the additio peg bills dated June 11, 1959 y ( 91 days remaining until maturity date on December 10, 1959 ) and noncompetitive tenders for $ioo 000 or less for the 182 -day bills without stated price from any one bidder will be accepted in ful at the average price (in three decimals) of accepted competitive bids for the tive issues. Settlement for accepted tenders in accordance with the bids must b made or completed at the Federal Reserve Bank on September 10, 1959 , in cash o other immediately available funds or in a like face amount of Treasury bills ma ing September 10, 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 lo — 17v A"! *" y, ( J TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Tuesday, ggptemftgr, 1, 1,959 The Treasury Department, by this public notice, invites tenders for two serie of Treasury bills to the aggregate amount of &1,600,000,000 , or thereabouts, f cash and in exchange for Treasury bills maturing September 10, 1959; in the amou of $1,600.520.000 > as follows: 91 -day bills (to maturity date) to be issued September inf mR9 > in the amount of $1,200,000,000 > or thereabouts, representing an additional amount of bills dated June 11, 1959 . & and to mature December 10. 1959 > originally issued in the W amount of $500.072.000 y the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated September 10, 1959 , and to mature March 10, 1960 • 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma value). Tenders will be received at Federal Reserve Banks and Branches up to the clos Daylight Saving hour, one-thirty o'clock p.m., Eastern ySd>m_Ctec_l time, Friday. September 4. 1959 Tenders will not be received at the Treasury Department, Washington. Each tende must be for an even multiple of $1,000, and in the case of competitive tenders price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT r 95jE3-Yrr> --^'T^^'^J™^ritmMm\ IMBHIJI iiiwirrf irairrii^TiMinimm«TMmiriMi«__n__M»ii ••••••••••__•__••«___••__••••_••• WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Tuesday, September 1, 1959* A-615 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 September 10,1959,in the amount of $1,600,320,000, as follows: 91-day bills (to maturity date) to be Issued September 10, 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated June 11, 1959, and to mature December 10,1959, originally issued in the amount of $500,072,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated September 10,1959,and t o mature March 10, i960. 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 -UB.-tQ.tke closing hour, one-thirty o'clock p.m., Eastern Daylight Savins time,Friday, September 4, 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 acoompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 •i-w ^^diately after the closing hour, tenders will be opened at -one federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount ana price range of accepted bids. Those submitting tenders will be ^ V 1 m e d ° f t h e a c c e P t a n c e °r rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or a 1 ~ tenders, in whole or In part, and his action in any such respect snail be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated June 11, 1959, (91 days remaining until maturity date on December 10, 1959) and noncompetitive tenders for $100,000 or less for thel82 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective Issues. Settlement for accepted tenders In accordance with the bids must be made or completed at the Federal Reserve Bank on September 10,1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 10,1959.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 hereunde: need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon oOo sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 4l8, Revised, and this notice, Federal prescribe of theirReserve issue. the terms Bank Copies of orthe Branch. of Treasury the circular bills may and begovern obtained thefrom conditions any DRAFT PRESS RELEASE 8-24-59 iT ? /\ /0 -:^S Hart tf. Spiegel, a tax attorney of San Francisco, Californ: has been named by Treasury Secretary Robert B. Anderson as Chief Counsel of the Internal Revenue Service effective September 21. Mr. Spiegel will succeed _S^, Arch M. Cantrall of Clarksburg, West Virginia, whose resignation, effective August 31* was announced recently. Born in Safford, Arizona, in 1918, Mr. Spiegel attended public schools in Topeka, Kansas, and was graduated from Yale University. He is a member of Phi Beta Kappa and Sigma Xi. In World War II, Mr. Spiegel was a Lieutenant in the U.S. Marine Corps and received the Purple Heart and Bronze Star during his service in the Pacific. Mr. Spiegel is a graduate of the Yale Law School, having received his LL.B. degree in 1946. While at the University he served as an editor of the Yale Law Journal. He was admitted to practice in California in 1947 and has been a partner of Brobeck, Phleger & Harrison in San Francisco since 1955. Mr. Spiegel was President of the Barristers* Club of San Francisco in 1951* and of the Conference of Barristers, State of California in 1953. He is presently Chairman of the Taxation Committee of the San Francisco Bar Association. He is "J/** the A author of various published articles on tax law^ ^ * ^ /•*** ->£&**/#! %/^r Mr. Spiegel is married to the former Genevieve Willson. They have three children and at present reside in Berkeley, California. 175 TREASURY DEPARTMENT W A S H I N G T O N , D.C. IMMEDIATE RELEASE, Monday, August 31* 1959. A-6l6 Hart H. Spiegel, a tax attorney of San Francisco, California, has been named by Treasury Secretary Robert B. Anderson as Chief Counsel of the Internal Revenue Service effective September 21. Mr. Spiegel will succeed Arch M. Cantrall of Clarksburg, West Virginia, whose resignation, effective August 31, was announced recently. Born in Safford, Arizona, in 1918, Mr. Spiegel attended public schools in Topeka, Kansas, and was graduated from Yale University. He is a member of Phi Beta Kappa and Sigma Xi. In World War II, Mr. Spiegel was a Lieutenant in the U. S. Marine Corps and received the Purple Heart and Bronze Star during his service in the Pacific. Mr. Spiegel is a graduate of the Yale Law School, having received his LL.B. degree in 1946. While at the University he served as an editor of the Yale Law Journal. He was admitted to practice in California in 1947 and has been a partner of Brobeck, Phleger & Harrison in San Francisco since 1955. Mr. Spiegel was President of the Barristers1 Club of San Franciscp in 1951, and of the Conference of Barristers, State of California in 1953. He is presently Chairman of the Taxation Committee of the San Francisco Bar Association. He is Secretary of the Bay Area Section on Taxation of the State Bar of California. He is the author of various published articles on tax law, and has lectured on tax subjects for the University of California. Mr. Spiegel is married to the former Genevieve Willson. They have three children and at present reside in Berkeley, California. 0O0 ' U . .. •/ _J i • » -: J"~" " STATEMENT BY TREASURY SECRETARY ANDERSON The bill providing for the payment of interest rates above the present ceiling on United States Savings Bonds, while inadequate, should be promptly enacted if this is all that is achievable at this time. However, this view should not be re- garded as any compromise of the Administration's firm position on the need for removing the interest rate ceiling on marketable bonds. The entire debt management legislation requested by the President almost three months ago is even more important today than when first presented. The responsibility for the conse- quences which could occur if the full proposal is not enacted would have to rest with those who opposed it. The holders of Government securities — and marketable issues — on their investment. both Savings Bonds are entitled to a fair rate of return But they must also be assured that the Government's financial policies are helping to prevent the purchasing power of their invested dollars from beiri] by inflation. Although the present measure provides needed relief for Savings Bonds purchasers and holders and makes certain technical improvements, we shall continue to urge that the ceiling on the marketable debt be removed in order that the Government may act prudently in managing the debt, so as to maintain confidence both at home and abroad in our determination to handle our financial affairs soundly. TREASURY DEPARTMENT -__ — ^ ^^ W A S H I N G T O N . D.C. IMMEDIATE RELEASE, Thursday, September 3. 1959. A-617 STATEMENT BY TREASURY SECRETARY ANDERSON The bill providing for the payment of interest rates above the present ceiling on United States Savings Bonds, while inadequate, should be promptly enacted if this is all that is achievable at this time. However, this view should not be regarded as any compromise of the Administration's firm position on the need for removing the interest rate ceiling on marketable bonds. The entire debt management legislation requested by the President almost three months ago is even more important today than when first presented. The responsibility for the consequences which could occur If the full proposal is not enacted would have to rest with those who opposed it. The holders of Government securities — both Savings Bonds and marketable issues — are entitled to a fair rate of return on their investment. But they must also be assured that the Government's financial policies are helping to prevent the purchasing power of their invested dollars from being impaired by inflation. , Although the present measure provides needed relief for Savings Bonds purchasers and holders and makes certain technical improvements, we shall continue to urge that the ceiling on the marketable debt be removed in order that the Government may act most prudently in managing the debt, so as to maintain confidence both at home and abroad in our determination to handle our financial affairs ' soundlv. 0O0 1 7w mi. I \y TREASURY DEPARTMENT Washington STATEMENT BY ASSISTANT SECRETARY OF THE TREASURY L A U R E N C E B. ROBBINS B E F O R E T H E S E N A T E FINANCE C O M M I T T E E , 10:00 A.M., E D T , FRIDAY, S E P T E M B E R 4, 1959 Mr. Chairman and Members of the Committee: I am glad to have this opportunity to present the Treasury Department's views on the financing of the Federal Highway Program. In the highway legislation which it enacted in 1956, the Congress estab- lished certain policies for the long-term financing of the Federal highwa gram. It determined that the costs of the program should be paid by taxes are in the nature of user-charge taxes. It set the rates of these taxes s revenues would be sufficient to pay the expected full cost of the program establishing the Highway Trust Fund and directing that total expenditures anytime could not exceed available revenues, the Congress established the policy of pay as you build. The Treasury Department strongly supports the principle of pay as you build from taxes specifically enacted to pay highway costs, and for that continues to feel that the best solution of the financing problem would b increase of 1-1/2 cents a gallon in the taxes on motor fuels proposed by President and urged by him again on several occasions. It would seem to be unnecessary to review in detail the immediate financial problem. The rate of outgo from the Highway Trust Fund is great than the income. The balance in the Trust Fund at the present rate will b A-618 179 - 2 - exhausted by October, and action is necessary if the states are to be reimbursed for work performed and the program is to be continued without serious interruption. H. R. 8678 falls considerably short of the President's recommendation. However, by providing a 1 cent tax increase for 22 months it does make possible a continuation of the program for several months beyond the date on which the reports of the studies of the Department of Commerce are to be submitted to the Congress. The section in H. R. 8678 providing for transfers of excise taxes to the Highway Trust Fund is one which the Treasury Department cannot regard favorably. We understand that the main purpose of this section is to make possible apportionments for 3 years after 1961 without suspending the Byrd amendment, but the Treasury has been and is opposed, in principle, to the diversion of general revenues for specific purposes, and it is our earnest hope that this will not be part of the ultimate financing plan. To meet the present situation, however, in the realization that the Congress must weigh the economic impact of a somewhat diminished highway program together with financing plans which are practicable and achievable, the Treasury, while not approving H. R. 8678, will accept it reluctantly in the hope that as a result Continued study, and after the Commerce Departments reports have been submitted, a satisfactory plan for permanent financing of the highway system can be devised which will eliminate the revenue transfers proposed in this bill. -Ltifj / / •<M*y i The treasury tmpmxtmmwA announced laat evening that the tender© far two eeriee oi Treasury bills, one series to be an additional lean* ef the hill* &m%*4 Jut* U , 19S9, and the other series te be dated fept«»ber 10, 1959, nhieh were offered on Septeaber 3 were efened at the Federal Reeervt Bank* en September tu Tandai* ?*ere imdted far fl,?00,000,000, or thereabouts, #f fl~day M M » **** *** fJfOO,©O0?OQO, or ihereaboitta, of lBf~4ay bill** THe detail* of tlMi %m Mritt are ae follows: l82~dey treasury bill* 91-dajr Treaanry bills mm* CWPST aaturlag Marat* 10, fteeepber XQM 1959 •MMNWWMIWmMIIIMMMMIIMMMMWMH . f. m%y^9m9 «<MaWWIHHMi Approx. Equiv Annual Hate mmm9999umm^mmmmmmmmm9m9mmmmt9m9mmf Price •MM MMVMM IWlMMMIMMWMlMIHiaM mmmi9i9mmmmm9mmmm99mmmmmmm 99*001 ^ tm 3.: 98 • 977 3.979$ Approx. &*viv. Annual Rat* 9797*730 97.739 lt.i*73* Exeepting one te&iar of 18,000 3 percent of the tmount of 91-day billff bid for at the loir price was accepted * percent of the a»emist of 182~day bills bJUs for at the leu price was accepted tOfat TMIttS APTLXIfi F0i AWT< ACClffit BY fIDatL R^SDNB DXSTIIBfSi Accepted District Applied For Aeo«gfd 999m9mmmmm>mm9mmm9m Boston let? IOTK Cleveland fttehM&d Atlanta t. Louis «? Kansaa City Sallaa 271.13?,000 1,399,.712, 32i»W9, 39,.709, If,>909, 29,.501, 157,.873,000 19,,093,000 11,,181,000 36,.397,000 12,,195,000 tmmmmmm 90.330,000 mmmmmmmSmmim9mmm9m TOTALS tl,368,1471,000 i 3,865,000 718,222,000 000 t 7,116 19,997 000 1,511 000 fe,968000 63,905 000 3,586 3,085 000 9,985 3,5*0 ^,306,000 ?l,200,071,OOOb/: 1885,106,000 # 27,132 775,612 9999^" ' 3,813,000 301,902,000 1,991,000 9,997,000 1,511,000 1,588,000 35,71(5,000 3,586,000 2,185,000 8,665,000 3,5fcO,ooo 22.i66.O00 tfaOO,O69,O0O|/ b/ laclude. 1202.332,000 m>neo»p«fcitlT« t«nd«rt accepted at the evcrafe price of 98.91 e/ Includes *«r,1^62,000 noncompetitive tenders accepted at the average prise of 97.739 i/'J A? Q1 TREASURY DEPARTMENT WASHJNGTOW.D.C. ELEASE Ae M. BEHSPAPERS, Saturday, September 5, 1959+ A-619 The Treasury Department announced last evening that the tenders for two series of freasury bills, one series to be an additional issue of the bills dated June 11, 1959 md the other series to be dated September 10, 1959, which were offered on September 1, rere opened at the Federal Reserve Banks on September 1*. Tenders were invited for £,200,000,000, or thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts. )f 182-day bills. The details of the two series are as follows: IANGE OF ACCEPTED 91-day Treasury bills 182-day Treasury bills IOMPETITIVE BIDS: maturing December 10, 1959 maturing March 10 9 I960 Price High Low Average Approx. Equiv< Annual Rate 99.002 a/ Price 3 1*.02*7# 3.979# 98.977 98*99fc 97-750 97.730 97.739 Approx. Equiv. Annual Rate h.h$l% h.h90% I Excepting one tender of $8,000 3 percent of the amount of 91-day bills bid for at the low price was accepted k percent of the amount of 182-day bills bid for at the low price was accepted OTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For WMSBMM«__MM»_»_MM_____ Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St, Louis Minneapolis Kansas City Dallas San Francisco TOTALS $ 27,132,000 1,399,712,000 32,1*39,000 39,709,000 12,909,000 29,501,000 157,873,000 19,093,000 11,181,000 36,397,000 12,195,000 90,330,000 $1,868,1*71,000 Accepted • - - A || Applied For Accepted * 3,865,000 718,222,000 7,116,000 19,997,000 1,511,000 l*,988,O00 63,905,000 3,586,000 3,085,000 9,985,000 3,51*0,000 1*5,306,000 $885,106,000 $ 3,813,000 301,902,000 1,991,000 9,997,000 1,511,000 1*,588,000 35,71*5,000 3,586,000 2,1*85,000 8,665,000 || 27,132,000 775,612,000 15,U39,000 39,709,000 12,909,000 29,201,000 ll»3, 873,000 19,093,000 11,181,000 28,397,000 12,195,000 85,330,000 &L,200,071,0O0b/ mtm^tmtmtt', . u r n — J _ _ — W — 1 • • i i ••• II i»»«»ja—___— 3,5i*o,ooo 22,266.000 $1400,089,0000/ / Includes $202*332,000 noncompetitive tenders accepted at the average price of 98.99U / includes $U2,W>2,000 noncompetitive tenders accepted at the average price of 97.739 1 n 200 IMMEDIATE RELEASE, Friday, September h9 1959. A-620 Secretary Anderson today announced that he has named Fred Burton Snith for appointment as an Assistant General Counsel of the Treasury Department, effective October 15. Mr. Staith will succeed John P. Weitzel who has been appointed Deputy to the Secretary of the Treasury. Mr. Snith was born in Syracuse, New York, on January 27, 1915• He studied at public schools in central New York and graduated from Princeton University with an A.B. degree in 1937. Be graduated from Syracuse University College of Law in 19^0 with the degree of LL.B. In the same year he was admitted to practice in New York State and for three years thereafter was associated with the firm of Hancock, Dorr, Ityan & Shove of Syracuse. In 19^3, Mr. Smith joined the Office of the General Counsel of the Treasury Department and has been with the Treasury continuously since. He has been concerned primarily with legal matters in the monetary, international finance and trade fields. In 19*A, as part of his official duties, he authored a study on "Financial and Economic Laws of Czechoslovakia11. In 19*4-5 and 19^6 he served in Treasury's Foreign Funds Control Office in Manila, Philippine Islands, completing his service there as Acting Chief of the office. Mr. Staith has been a member of the United States delegations to > a number of international conferences. Mr. Smith, and his wife (the former Lynda Dickinson) have nine children. They reside at 5205 Battery Lane, Bethesda, Maryland. oOo TREASURY DEPARTMENT WASHINGTONIMMEDIATE RELEASE, Friday, September k, 1959* A-620 Secretary Anderson today announced that he has named Fred Burton Smith for appointment as an Assistant General Counsel of the Treasury Department, effective October 15. Mr. Smith will succeed John P. Weitzel who has been appointed Deputy to the Secretary of the Treasury. Mr. Smith was born in Syracuse, New York, on January 27, 1915. He studied at public schools in central New York and graduated from Princeton University with an A.B. degree in 1937. He graduated from Syracuse University College of Law in 19^0 with the degree of LL.B. In the same year he was admitted to practice in New York State and for three years thereafter was associated with the firm of Hancock, Dorr, Ryan & Shove of Syracuse. In 19^3, Mr. Smith joined the Office of the General Counsel of the Treasury Department and has been with the Treasury continuously since. He has been concerned primarily with legal matters in the monetary, international finance and trade fields. In 19^, as part of his official duties, he authored a study on "Financial and Economic Laws of Czechoslovakia11. In 19^5 and 19^6 he served in Treasury's Foreign Funds Control Office in Manila, Philippine Islands, completing his service there as Acting Chief of the office. Mr. Smith has been a member of the United States delegations to > a number of international conferences. Mr. Smith, and his wife (the former Lynda Dickinson) have nine children. They reside at 5205 Battery Lane, Bethesda, Maryland. oOo 184 - 3- from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are sub 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 inte 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 whi Treasury bills are originally sold by the United States is considered to be in Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a of discount at which bills issued hereunder are sold is not considered to accr until such bills are sold, redeemed or otherwise disposed of, and such bills a eluded from consideration as capital assets. Accordingly, the owner of Treasur bills (other than life insurance companies) issued hereunder need include in h income tax return only the difference between the price paid for such bills, w on original issue or on subsequent purchase, and the amount actually received upon sale or redemption at maturity during the taxable year for which the retu 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 o the circular may be obtained from any Federal Reserve Bank or Branch. - 2- decimals, e. g., 99.925. Fractions may not be used. It is urged that tdn&3-s be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their own account. Tenders will be received without deposit from incor rated banks and trust companies and from responsible and recognized dealers in ment securities. Tenders from others must be accompanied by payment of 2 percen the face amount of Treasury bills applied for, unless the tenders are accompani an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by t Treasury Department of the amount and price range of accepted bids. Those submi ting tenders will be advised of the acceptance or rejection thereof. The Secret of the Treasury expressly reserves the right to accept or reject any or all ten in whole or in part, and his action in any such respect shall be final- Subject these reservations, noncompetitive tenders for $ 200,000 or less for the additi bills dated June 18, 1959 , ( 91 days remaining until maturity date on December 17, 1959 ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in ful at the average price (in three decimals) of accepted competitive bids for the r tive issues. Settlement for accepted tenders in accordance with the bids must b made or completed at the Federal Reserve Bank on September 17, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills ma ing September 17, 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 lo LW$M*M5iTf?«f-: TREASURY DEPARTiMEi<T Washington RELEASE A. M. NEWSPAPERS, Thursday, September 10, 1959 • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1T600.000.000 > ox thereabouts, cash and in exchange for Treasury bills maturing September 17, 1959; in *be amou of $ 1,600,712,000 , as follows: 91 -day bills (to maturity date) to be issued September-17. 1959 > ' in the amount of $ 1,200.000,000 , or thereabouts, representing an additional amount of bills dated June 18. 1959 , and to mature December 17, 1959 , priginally issued in the m^ amount of $ 500,105,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated September 17, 1959 , and to mature March 17, 1960 fc_3$ " PSJ 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma value). Tenders will be received at Federal Reserve Banks and Branches up to the closi Daylight Saving hour, one-thirty o'clock p.m., Eastern/8$Sfia3aGK& time, Monday, September 14, 1959 Tenders will not be received at the Treasury Department, Washington. Each tende must be for an even multiple of $1,000, and in the case of competitive tenders price offered must be expressed on the basis of 100, with not more than three >K 7 J, W I TREASURY DEPARTMENT WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, September 10, 1959. A-621 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $L, 600,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 17,19594n the amount of $1,600,712,000, as follows: 91-day bills (to maturity date) to be issued September 17> 1959* in the amount of $ 1,200,000,000, or thereabouts, representing an additional amount of bills dated June 18, 1959* and to mature December 17^1959^ originally issued in the amount of $500,103,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated September 17*1959/*nd to mature March 17, i960. 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, September 14,1959 Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, ^with not more than three decimals, e. g., 99-925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking Institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from Incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amounl and price range of accepted"bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any c all tenders, in whole or in part, and his action in any such respec shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated June 18, 1959, (91 days remaining until maturity date on December 17,1959) and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted In full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 17, 195S in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 17,1959-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 exclude from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereund need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which tfc return is made, as ordinary gain or loss. 0O0 Revised, and this notice Treasury Department Circular No. 4l8, prescribe the terms of the Treasury bills and govern the conditions of theirReserve issue. Bank Copies of the circular may be obtained from any Federal or Branch. S T A T U T O R Y D E B T LIMITATION AS OP AUGUST J l ^ ^ i , " , , v t c u u u n g o u u u a as may uc ucia D V m e secretary wi m e ucoa»uy/j 1 Q 0 - Washington ;^e E t i _10 i 1959 .*»««.. «-- —- ^~ ~ » _ _ ,1.- r n r r . n f .... (Act of June 30, 1959; U.S.C.,title31, sec. 757b), outstanding at any one time. For purposes of this £ « " » * « * £ " £ ! • £ demption value of any obligation issued on a discount basis which is redeemable prior to maturity at the opt*OQ ™ ™ e **** shall be considered as its face amount." The Act of June 30, 1959 (P.L. 86-74 86th Congress) ^ ^ ^ J ^ ^ ^ 1 ^ beginning on July 1, 1959 and ending June 30, I960, the above limitation ($285,000,000,000) shall be temporarily increased by $10,000,000,000. The following table shows the face amount of obligations outstanding and the face amount which can still be issued under this limitation: Total face amount that may be outstanding at any one time v£>7J|UUU,UUU, UUU OutstandingObligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills , $38, 630 ,577, 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 ... 20 , 342 , 643 » 000 40.664.117.000 $ 99,627,337,000 84,786, 062 , 050 49,983,091,673 178, 985, 500 8.250.817.000 9,014,501,000 15 , 650 , 902, 000 20,057,110,000 143,198,956,223 44.722.513.000 287 , 548 , 806 , 223 4 0 8 , 785,375 50,063,709 o2o,5H 1,971,250,000 Total Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 109,966,300 Matured, interest-ceased 815,425 Grand total outstanding .„ , Balance face amount of obligations issuable under above authority 2.022.142.220 289,979,733,818 110 , 781. 725 Reconcilement with Statement of the Public Debt...rS^.?.5....2ij....i.?™ (Date) (Daily Statement of the United States Treasury, -^Sf.?.$:..2-kf....?:.?5S (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 2 9 0 , 0 9 0 , jlj, JT*J kr9yQy9*w3Hr.Lbj( ) t 290,395,608,739 110 . /Ol. (Cj. 290,506,390,krtn 415,874.921 290,090,515,5^3 A-622 STATU i OK Y DEBT LIMITATION AS O F _AUGUST _3_1JU1959_ -: 0 0 . 1959 Washington, k e p t . 1 0 , 1 ^ ^ Section 21 of Second liberty Bond Act,, as amended, provides that the face amount of obligations issued under authority of that Act, and the face aiu- MHC of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $285,000,000,000 (Act of June 30, 1959; U.S.C., title 31, sec. 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder shall be considered as its face amount." T h e Act of June 30, 19^9 (P»L. 86-74 86th Congress) provides that during the period beginning on July 1, 1959 and ending June 30, I960, the above limitation ($285,000,000,000) shall be temporarily increased by $10,000,000,000* The following table shows the face amount of obligation, outstanding and the face amount which can still be issued under this limitation: Total face amount that may be outstanding at any one time $295,000,000,000 Outstanding Obligations issued under Second Liberty Bond Act, as amended Interest-bearing: Treasury bills , $38,630 ,577,000 Certificates of indebtedness 20,342,643,000 Treasury notes Bonds- 40.654.117.000 Treasury * Savings (current redemp. value) Depositary. 84,786 , 062,050 4 9 , 983 , 091, 673 I78,985, 500 Investment series Special FundsCertificates of indebtedness 8,250.817.000 143,198,956,223 9,014,501,000 Treasury notes Treasury bonds Total interest-bearing Matured, interest-ceased $ 99,627, 337,000 1 5 f 6 5 0 ,902,000 20,057,110,000 f 44.722.513.000 287,548,806,223 « Bearing no interest: United States Savings Stamps Excess profits tax refund bonds Special notes of the United States: Intcrnat'l Monetary Fund series 4 0 8 , 785,375 50,063,709 82o,5H 1,971,250,000 2.022.142,220 Total 289,979,733,818 Guaranteed obligations (not held by Treasury): Interest-bearing: Debentures: F.H.A 109,966,300 Matured, interest-ceased 815,425 Grand total outstanding .„ Balance face amount of obligations issuable under above authority . 110 . 7ol. 725 2 y 0 , U y U , J±J9 jrrj *•","vi/f*rO*r f*r^>/ An PI is t 31 1959 Reconcilement with Statement of the Public Debt ...^fe^.?..r...^.l...^:.<.^ (Dntc) (Daily Statement of the United States Treasury, v ,. &}![&}$.%...jJr.t.....y.2.S. ) (Date) totatanding- , rt To,..e r o s s public deb. p * Guaranteed obligations not owned by the Treasury •r Total gross public debt and guaiautecd obligations. kdua - other outstanding public debt obligations not subject to debt limitation „ 290,395.608,739 i i n *yf\i r ? oc » i '— '/'VrP Q O ^ 0 ^ 3 Q 0 4(S4 *-7^% ' »tlr7, • ^ 7-*Oa "f ^ i .^JL 290,090,515. i*3 A-62f! TREASURY DEPARTMENT Washington, D* C« IMMEDIATE RELEASE FRIDAY, SEPTEMBER 11, 1959. A-623 PRELDONiJCf DATA ON IMPOSTS FOR CONSUMPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED B7 PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 195$ QUARTERLY QUOTA PERIOD duly I, 1959 - September 30, 1959 IMPORTS duly I, 1959 - September 8, 1959 ITEM 394 ITEM 393 ITEM 392 V Lead bullion or base bullion, t load in pigs and bars, lead Zino-bearing ores of all kinds,: Zino In blocks, pigs, or slabs; Lead-bearing ores, flue dust,s dross, reolaimad lead, scrap except pyrites containing not : old and worn-out zino, fit and mattes : lead, antii&onlal lead, antiorer 3$ of zino i only to be reaanufaetured, zino : aonial scrap lead, type a*stal, : ; dross, and zino skinmings * all alloys or combinations of * lead n.s.p.f. :Quarterly Oaota aiartarly&iota :&*artarly Cfciota : Quarterly Siota Imports : By Wsljfot Imports t Dutiable. Lead Imports i Dutiable Lead Imports i Dutiable Zins (Pounds) (Pounds} (Pounds) *(Pounds) "" ITEM 391 Country of Produotion Australia 10,080,000 9,802,?U0 23,680,000 23,680,000 5,000,126 Belgian Congo - 5,440,000 Belgium and Luxemburg (total) - 7,520,000 H, 109,352 37,840,000 28,500,378 3,600,000 3,600,000 6,320,000 2,505,955 Bolivia 5,040,000 Canada 13,440,000 5,0^0,000 13,^0,000 15,920,000 10,390,616 66,480,000 66,^80,000 Italy m> m. • Mexico - 36,880,000 36,007,309 70,480,000 68,090,720 9,983,976 35,120,000 28,681,38*4 3,760,000 Peru l6,l6Q,000 I*»,9I2,«I39 12,880,000 Un. So* Afrioa 14,880,000 IU,880,000 Tugoslovia All other foreign countries (total) mt 6,560,000 i5,7$o#ooo 15,760,000 1,828,036 6,080,000 6,080,000 17,840,000 I7,8H0,000 6,080,000 2,6l*»,78H 6,080,000 TREASURY DEPARTMENT Washington, D. C. IMKEDIATE RELEASE FRIDAY, SEPTEMBER 11, 1959, A-623 PRELIMINARy DATA ON IMPORTS FOR CONSUMPTION 0? UNMANUFACTURED LEAD AND ZINC CHARC2A3LS TO THE QUOTAS ESTABLISHED BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 1958 QUARTERLY QUOTA PERIOD • duly 1, 1959 - September 30, 1959 IMPORTS • July I, §959 •» September 8, 1959 ITEM Country of Produotion Australia 391 ITEM 392 i Lead bullion or base bullion, t lead in pigs and bars, lead Lead-bearing ores, flue dust,: dro33, reolaisad lead, scrap and sattes : lead, antiaonial load, anti: aonial scrap l_ad, typ_ satal, : all alloys or combinations of * load n.s.?»f. Giartarly feiota :£_art3rly Guota. 1 Dutiable, Lead Iaports : Putlabia L-aai I^Dorts (Pounds) (PcundsJ~ 10,080,000 3,80_,_U0 23,680,000 ITEM 393 ITEM 2J.no-bearing or«3 of all kinds,: Zino la blocks, pigs, or slabs; except pyrites containing- not : old and *om-out zino, fit orir 3^ of zino t only to be rssanufactured, zinc dross, and zinc 3ki.in in53 rosartsrly Cnota : Dutiable Zinc ^Pounds) Inserts 5,440,000 Belgium and Luxemburg (total) 5,040,000 Canada 13,440,000 Italy 13,^0,000 15,920,000 »0,390,616 66,480,000 66,*f30,0C0 37*840,000 -S,50C,378 3,600,000 3,600,000 6,320,000 2,505,955 68,090,720 9,983,976 35,120,000 28,681,38** 3,760,000 2,6i*4,78U 17,8*40,000 6,080,000 IMI2,»»39 12,880,000 Un« So. Afrioa 14,880,000 1^,880,000 PRZPARZD IN TH2 BUHSATJ 07 CUSTOyS *+,109,352 36,007,309 70,480,000 16,160,000 6,560,000 7#520,000 36,880,000 Peru Yugoslovia 5,000,126 5,G*t0,000 • a. Msxloo All other fOrel&\ oountrles (total) Starts rly Cuota By height Imports {?onnds) 23,680,000 Belgian Congo Bolivia 394 T : 15,760,000 •5,760,000 1,828,036 6,080,000 6,080,000 17,840,000 6,080,000 *&. \m/ __. TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE, F R I D A Y , SEPTEMBER 1 1 , 1 9 5 9 . A-624 The Bureau of Customs announced today the following preliminary figures showing the import & for consumption from January 1, 19 £9, to August 29, 1959, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955: Established Annual Quota Quantity Commodity Buttons • 765,000 Unit of Quantity Gross Imports as of August 29, 1959 229,060 Cigars .• • 180,000,000 Number 3.233,919 Coconut oil • ••• 1*03,200,000 Pound 93,592,621* Cordage 6 , 000 , 000 Pound 3,198,913 (Refined Sugars (Unrefined*....••• Tobacco ....• 5,850,000 1,90U,000,000 63,i*Ol*,000* Pound 1,81*0,596, 000* Pound 5,691,829 •^Information furnished by Department of Agriculture TREASURY DEPARTMENT Washington, D. C. 1 QQ *t,m \J IMMEDIATE RELEASE, F R I D A Y , SEPTEMBER 1 1 , 1 9 5 9 . \y A-624 The Bureau of Customs announced today the following preliminary figures showing the imports for consumption from January 1, 1°3>°, to August 2°, 1959, inclusive, of commodities for which quotas were established pursuant to the Philirroine Trade Agreement Revision Act of 1955: Commodity . DUT> x»ons.......99.9..... Established Annual ! Quota Quantity : 765,000 Unit o f \ : Imports as of Quantity* August 29, 1959 Gross 229,060 180,000,000 Number 3,233,919 Coconut oil.•«•••»..••• 1*03,200,000 Pound 93,592,621* ooruage «•••••«••« «»•«»« 6,000,000 Pound 3,198,913 ^itennecL.......9.. Sugars 63,l*Ol*,000* 1,901*, 000, 000 Pound 1,81*0,596,000* 10Daceo•«««».«#*»«#«.«• 5,85o,ooo Pound -^Information furnished by Department of Agriculture 5,691,829 - 2 - Commodity Period and Quantity Unit of Quantity "Imports as of August 29, Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl* roasted peanuts but not peanut butter)•••< Rye, rye flour, and rye meal, Butter substitutes, including butter oil, containing U5% or more butterfat............... Tung Oil, *Imports through September 8» 12 mos. from August 1, 1959 August 5 August 31, 1959 Canada Other Countries Sept. 1, 1959 June 30, I960 Canada Other Countries Calendar Year Feb* 2, 1959 October 31, 1959 Argentina Paraguay Other Countries 1,709,000 Pound 3,800 6,606,1*1*3 13U,825 Pound Pound Quota fil 75,851,71*1 1,51*7,995 Pound Pound 18,870,996^ 1,200,000 Pound Quota fir 16,633,591 2,231,680 702,000 Pound Pound Pound ll*,253,621* Quota fir Quota fiT - *\ "mJ *y TREASURY DEPARTMENT Washington, D. C. IMMEDIATE RELEASE FRIDAY, SEPTEMBER 11, 1959. A-625 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 August 29, 1959, inclusive, as follows: Commodity Period and Quantity Unit of Quantity Imports as of August 29, Tariff-Rate Quotas: Cream, fresh or sour, Calendar Year 1,500,000 Gallon 117 Whole milk, fresh or sour, Calendar Year 3,000,000 Gallon 155 Cattle, 700 lbs. or more each (other than dairy cows).**., July 1, 1959 Sept. 30, 1959 120,000 Head 21,153 12 mos* from April 1, 1959 200,000 Head 30,326 Fish, fresh or frozen, filleted, etc*, cod, haddock, hake, pollock, cusk, and rosefish. Calendar Year 36,919,871* Pound Quota fiT Tuna fish, Calendar Year 52,372,571* Pound 31,31*5,081* White or Irish potatoes: Certified seed. Other • 12 mos* from Sept. 15, 1958 111*, 000,000 36,000,000 Pound Poujid 79,208,750 17,369,820 Walnuts..., Calendar Year 5,000,000 Pound 2,71*3,257 Peanut Oil* 12 mos* from July 1, 1959 80,000,000 Pound Calendar Year 13,500,000 Pound Quota fi May 19 - Dec. 31, 1959 350,000 Pound 180,753 Cattle, less than 200 lbs* each.. Woolen fabrics Woolen fabrics (Presidential Proclamation 3285 - TD 51*81*5)... - 1/ Imports for consumption at the quota rate are limited to 27,689,905 pounds during the first nine months of the calendar year. (cohtinued) TREASURY DEPARTMENT Washington, D. C. c_. \j '-• 3DIATE RELEASE IDAY, SEPTEMBER 11, 1959. A-625 The Bureau of Customs announced today preliminary figures showing the imports for sumption of the commodities listed below within quota limitations from the beginning the quota periods to August 29, 1959, inclusive, as follows: Commodity Period and Quantity Unit : Imports of : as of Quantity : August 29. 195^ ——•—^mmtrntt^^mmthmmmlmmmm—mm^mmmmmmmm_»———••m\% • I I iff-Rate Quotas: am, fresh or sour, Calendar Year le milk, fresh or sour.••••••• Calendar Year 3,000,000 Gallon 155 July 1, 1959 Sept. 30, 1959 120,000 Head 21,153 12 mos* from April 1, 1959 200,000 Head 30,326 h, fresh or frozen, filleted, >c, cod, haddock, hake, pol|k, cusk, and rosefish**.*••• Calendar Year 36,919,871* Pound Quota filled! a fish, Calendar Year 52,372,571* Pound 31,31*5,081* te or Irish potatoes: rtif ied seed* her _ 12 mos. from Sept. 15, 1958 111*, 000,000 36,000,000 Pound Poujid 79,208,750 17,369,820 Calendar Year 5,000,000 Pound 2,71*3,257 12 mos. from July 1, 1959 80,000,000 Pound Calendar Year 13,500,000 Pound 350,000 Pound tie, 700 lbs* or more each other than dairy cows).***, tie, less than 200 lbs* each*. nuts #• nut Oil, ken fabrics k'n fabrics (Presidential >clamation 3285 - TD 51*81*5)..• May 19 - Dec. 31, 1959 1,500,000 Gallon 117 Quota filled 130,753 •i'«>orts for consumption at the quota rate are limited to 27,689,905 pounds during the i'irat nine months of the calendar year. (cohtinued) - 2 - Commodity Period and Quantity Unit of Quantity Imports as of August 29, Absolute Quotas: Peanuts, shelled, unshelled, blanched, salted, prepared, or preserved (incl. roasted peanuts but not peanut butter).*. Rye, rye flour, and rye meal, Butter substitutes, including butter oil, containing U5% or more butterfat.........••*.•• Tung Oil, ^Imports through September 8, 12 mos* from August 1, 1959 August 5 August 31, 1959 Canada Other Countries Sept. 1, 1959 June 30, I960 Canada Other Countries Calendar Year Feb. 2, 1959 October 31, 1959 Argentina Paraguay Other Countries 3,80( 1,709,000 Pound 6,606,1*1*3 13U,825 Pound Pound 75,851,71*1 1,51*7,995 Pound Pound 18,870,9* 1,200,000 Pound Quota fi] 16,633,591 2,231,680 702,000 Pound Pound Pound ll*,253,62] Quota fil Quota fH Quota f i] - -<2COTTON WASTES (In pounds) ( 19 7 ^JLCA?!»SJK2 mo™rm,COtton having* staple of less than 1-3/16 inches in length, COMBER ' M £ 5 ™ ^ , ™ f r £ S ^ K . W A S T B , AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUEt Provided, however, that not more than33-1/3 percent of the quotas shall ,„ 5 i ± ~ ?y ^ f 1 1 ^ s t e s o t h e r t h a n ^mber wastes made from cottons of 1-3/16 inches or more XiJSo!" 1*°?? ™ t ° aSe 0f t h & f o l l o w i n g countries! United Kingdom, France, Netherlands, Switzerland, Belgium, Germany, and Italy* . ' Established '. Total Imports s Established Imports Country of Origin 17 TOTAL QUOTA t Sept. 20, 19 5a, to ; 33-1/3^ of Sept. 20, 19 58, is«pt.. skt IQ^Q t Total Quota to Sept. 8. 1959 United Kingdom . 4,323,457 * * 1,441,152 1,488,473 1,441,152 Canada 239,690 239,690 France ...... 75,807 227*420 648 648 British India . 69,627 50,304 22,747 Netherlands 68,240 14,796 Switzerland 44,388 12,853 Belgium . . 38,559 Japan • . . 341,535 China . . . 17,322 Egypt . . . 8,135 24,935 25,443 24,935 Cuba . . . 6,544 __^_3D_ 7.088 6rsao Germany . • 76,329 5,482,509 1,810,630 Italy 0 . . 1,599,886 21.263 1,473,315 © . 1/ Included in total imports, column 2, Prepared in the Bureau of Customs. 1 QQ TREASURY DEPARTMENT Washington, D. C. MEDIATE RELEASE FRIDAY. SKPTWyiRTCB-n, iggo, A ^626 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/Vr Imports September 20, lge - September 8_ 1959 Country of Origin Established Quota Imports Country of Origin Established Quota ilgypt and the Anglo- Honduras 752 Egyptian Sudan 783,8l6 Paraguay . ?eru • •• • 2^7,952 -.Colombia 3ritish India 2,003,^3 1Q,064 Iraq hina ' 1,370,791 British East Africa .. . fexico 8,883,259 8,883,259 Netherlands E. Indies . 3razil 618,723 618,723 Barbados Jnion of Soviet l/other British W. Indies Socialist Republics ... kl5,122+ 327,702 Nigeria Argentina .. 5,203 2/0ther British W. Africa Iaiti 237 3/0ther French Africa .., Ecuador 9,333 _. Algeria and Tunisia ... ./ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago. \J Other than Gold Coast and Nigeria. ;/ Other than Algeria, Tunisia, and Madagascar. 871 ' 122* . 195 2,2^0 71,388 . Cotton 1-1/8" or more Imports August 1, 1959 - September 8, 1959 Established Quota (Global) - k-5,656,^20 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 39,590,778 39,590,778 1,500,000 1,500,000 21,321 5,377 l6,00l+ 689 TREASURY DEPARTMENT Washington, D. C. 1 QO IMMEDIATE RELEASE FRIDAY, SF.PTF,MRKR.n, 1,959. A-626 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, lgS - September 8, 1959 Country of Origin Egypt and the AngloEgyptian Sudan Peru British India China Mexico Brazil Union of Soviet Socialist Republics ... Argentina Haiti Ecuador Established Quota 783,816 247,952 2,003,483 1,370,791 8,883,259 618,723 475,124 5,203 237 9,333 10,064 8,883,259 618,723 327,702 Established Quota Country of Origin Imports Honduras Paraguay Colombia Iraq British East Africa ... Netherlands E. Indies . Barbados l/0ther British W. Indies Nigeria 2/0ther British W. Africa 3/Other French Africa ... Algeria and Tunisia ... l/ 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, 1959 " September S, 1959 Established Quota (Global) - 45,656,420 Lbs. Allocation Staple Length 1-3/8" or more 1-5/32" or more and under 1-3/8" (Tanguis) . 1-1/8" or more arid under 1-3/8" Imports 39,590,778 39,590,778 1,500,000 1,500,000 4,565,642 4,565,642 J.L.. ~ ^ — ~t ~> 752 871 12U 195 2,2^0 71,388 752 21,321 5,377 16,00*4689 - — — — — — — -£COTTON WASTES (In pounds) COTTON CARD STRIPS made from cotton having-a staple of less than 1-3/16 inches in length, COHBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Provided, however, that not more than 33-1/3 percent of the quotas shall be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more in staple length in the case of the- following countries: United Kingdom, France, Netherlands, Switzerland* Belgium, Germany, and Italys Country of Origin Established TOTAL QUOTA 1 T o t a l Imports s Established s Imports T7 : Sept. 20, 19 5a, to s _33-l/3$ of s Sept. 20, 19 58, Total Quota : to Seot* 8, 1959 sSfipt,,ft,1959 United Kingdom 4,323,457 Canada . 239,690 France . . . . 227,420 British India 69,627 Netherlands . 68,240 Switzerland . . . . . . . 44,388 Belgium 38,559 Japan . . . . . . . . . . 341,535 China 17,322 Egypt 8,135 Cuba 6,544 Germany 76,329 Italy 21.263 1,488,473 239,690 648 50,304 1,441,152 1,441,152 75,807 648 24,935 6,580 25,443 7,088 24,935 6^30 5,482,509 1,810,630 1,599,886 1,473,315 1/ Included in total imports, column 2. Prepared in the Bureau of Customs. 22,747 14,796 12,853 UNITED STATES NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL; INSTITUTIONS January 1, 1959 - June 30, 1959 (in millions of dollars at $35 per fine troy ounce) • ^ — _ ^ _ . _. _ - Negative figures represent net sales by the United Statesj positive figures, net purchases ^^^^^^m^^^^^'^^m^^^H^m^^mam^mmmm1'm^mm9m^^m^^m^.%mm^m^mm^mm^m^mm^.^mm%%%Wm%m^^ Country Argentina Austria Bank for International Settlements Belgium Chile Denmark Indonesia International Monetary Fund Iran First Quarter 1959 — •HI > -39.3 -7.0 -25.0 -120.7 -38.5 -5.0 -210.2 +3.0 -5.0 -5.0 -5.0 — -8.8 -U9.9 Netherlands Philippines Portugal -29.9 +5.0 United Kingdom Vatican City All Other Total Fiscal Year 1959 July 1, 1958 to June 30, 1959 +67.2 -123.5 Italy Japan Mexico Spain Surinam Switzerland Second Quarter 1959 — -1.2 -.9 -92.6 -3ii3.8* -352.6 -2.3 -20.0 -180.0 -125.0 -20.0 -10.0 -186,0 +11.9 -10.0 -U5.0 +31.7 -2.5 -75.1 — -200.0 -350.0 -3.2 -.9 -3.5 -732.5* -1,660.7 * Pursuant to the Act approved June 17, 1959, the United States made payment of its increase in quota to the International Monetary Fund, amounting to $1,375,000,000, on June 23, 1959. The payment was made in gold in amount of $3ii3,750,000.40, and in non-negotiable, non-interestbearing notes of the United States amounting to $1,031,2l;9,999.60 in place of a like amount of currency. Figures may not add to totals because of rounding* ^y^\ 1^- IMMEDIATE RELEASE Friday, September 11, 1959 A-627 The Treasury Department today made public a report of monetary gold transactions with foreign governments, central * banks, and international institutions for the second quarter of 1959. In this period, net sales of gold by the United States amounted to $388*7 million. These transactions brought to $461*3 million the net sales of monetary gold by the United States in the first half of this year. Pursuant to the Act approved June 17, 1959, the United States made payment of its increase in quota to the International Monetary Fund, amounting to $1,375,000,000, on June 30, 1959* Of this amount, $343 <> 8 million was paid in gold* With this gold payment to the International Monetary Fund in June, United States net monetary gold transactions were $825<>1 million in the first half of this year* In the fiscal year ended June 30, 1959, net monetary gold transactions by the United States totaled $1,660*7 million, including the $343*8 million gold payment to the International Monetary Fund. A table showing net transactions, by country, for the first two quarters of 1959 and for the fiscal year (ended June 30) 1959 is printed on reverse side. TREASURY DEPARTMENT WASHINGTON. D. IMMEDIATE RELEASE Friday, September 11, 1959 A-627 The Treasury Department today made public a report of monetary gold transactions with foreign governments, central banks, and international institutions for the second quarter of 1959* In this period, net sales of gold by the United States amounted to $388*7 million. These transactions brought to $461*3 million the net sales of monetary gold by the United States in the first half of this year. Pursuant to the Act approved June 17, 1959, the United States made payment of its increase in quota to the International Monetary Fund, amounting to $1,375,000,000, on June 30, 1959. Of this amount, $343*8 million was paid in gold. With this gold payment to the International Monetary Fund in June, United States net monetary gold transactions were $825*1 million in the first half of this year* In the fiscal year ended June 30, 1959, net monetary gold transactions by the United States totaled $1,660*7 million, including the $343.8 million gold payment to the International Monetary Fund. A table showing net transactions, by country, for the first two quarters of 1959 and for the fiscal year (ended June 30) 1959 is printed on reverse side. UNITED STATES NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS January 1, 1959 - Junev30, 1959 (in millions of dollars at $35 per fine troy ounce) Negative figures represent net sales by the United States; positive figures, net purchases First Second Fiscal Year 1959 Quarter Country 1959 Argentina Austria Bank for International Settlements Belgium Chile Denmark Indonesia International Monetary Fund Iran asm** -39.3 -7.0 -25.0 -120.7 -38.5 -5.0 -210.2 +3.0 -5.0 -5.0 -5.0 9m-mmm» -8.8 -U9.9 Netherlands Philippines Portugal -29.9 +5.0 United Kingdom Vatican City All Other Total July 1, 1958 to June 30, 1959 +67.2 -123.5 Italy Japan Mexico Spain Surinam Switzerland Quarter 1959 mtmrnW. 1 ^ 111 _ . -3U3.8* -45.0 -20#0 -180.0 -125.0 -20.0 -10.0 -186.0 +11.9 -10.0 Hi—111 — -200.0 -1.2 -.9 -92.6 -352.6 -2.3 -.9 -732.5* +31.7 -2.5 -75.1 -350.0 -3.2 -3.5 -1,660.7 •* Pursuant to the Act approved June 17, 1959, the United States made payment of its increase in quota to the International Monetary Fund, amounting to $1,375,000,000, on June 23, 1959* The payment was made in gold in amount of $343,750,000.40, and in non-negotiable, non-interestbearing notes of the United States amounting to $1,031,249,999.60 in place of a like amount of currency. Figures may not add to totals because of rounding. TREASURY DEPARTMENT WASHINGTON. D.C. IMMEDIATE RELEASE, , Monday, September 14, 1959- A-628 Secretary Anderson today administered the oath of office to Artemus E. Weatherbee as Administrative Assistant Secretary of the Treasury. Mr. Weatherbee has been in the Federal career service for the past 20 years, and prior to his present appointment served as Deputy Assistant Postmaster General. He succeeds William W. Parsons, who resigned on August 31, 1959. As Administrative Assistant Secretary, Mr. Weatherbee will exercise direction over the Treasury's administrative affairs, which includes the departmental budgetary, personnel, and management improvement programs. Friends and Treasury associates of Mr. Weatherbee were present at the swearing-in ceremony. Mr. and Mrs. Weatherbee, and their three children, reside at 9302 Second Avenue, Silver Spring, Maryland. (Biographical sketch attached) ARTEMUS E. WEATHERBEE Administrative Assistant Secretary of the Treasury cC4 PUCE AND DATE OF BIRTH: February 9/1918 — Bangor, Maine. STEP-FATHER: Ray Wellman Sherman. MOTHER: Lola (Ye Hand) Sherman. EDUCATION: Public Schools of Bangor, Maine. University of Maine (A.B. 1939) IARRIED: ^Pauline Jellison. DATE: June 18, 1940. JHIIDREN: Sue, Richard and Steven. I0ME: 9302 Second Avenue. Silver Spring, Maryland. BRIEF CAREER SUMMARY: 1939-40 National Institute of Public Affairs - Non-salaried internship in public administration in Federal Service. 1939-42 Farm Credit Administration - Chief Placement and Appointment. Chief Classification. Classification Analyst. 1942-43 National War Labor (Stabilization) Board Director of Personnel. 1943-46 U.S. Navy - Naval Supply and Disbursing Officer U.S. and Europe, currently Commander, Naval Reserve. 1946*War Assets Administration - Chief, Executive Selection. 1946-54 State Department - Acting Director and Deputy Director of Personnel. Special Asst. Office of Under Secretary of Admin. Assistant Chief, Departmental Personnel Division. Chief, Allowances Staff. Assistant Branch Chief, Division of Foreign Service Admin. Chief, Foreign Service Recruitment. 1954-59 Post Office Department - Deputy Assistant Postmaster General. Bureau Executive Director. 1959-Treasury Department, Administrative Assistant Secretary of the Treasury. Took oath of office on Sept. 14, 1959. - 2 PROFESSIONAL AND ACADEMIC: / __ „ ^ ^ A.B. University of Maine (History and Government Major, Economics Minor) - with Honors Valedictorian - Nominated by University of Maine for Rhodes Scholarship. Several night and correspondence courses in public administration, foreign affairs, law and military science. Member Phi Beta Kappa, Phi Kappa Phi, Sigma Mu Sigma. Former member of a number of management organizations,and participant in several special management and personnel activities. Active in several civic and social groups. September, 1959. - 2 05 A# If. September 35, lj y^i. i.., •, •MWIMM«<MM<*lMMnllllW*<MM«| f^„ fhe Treasury Departansnt announced last evening that the tenders for two series of Treasury bills, one series to \m m additiowftl issue of the bills dated June 18, 1959, and the other series to be dated September 17,. 1959, Ifhioh were offered on September 10, were opened at the Federal Reserve Banks on September l\k* Tenders were invited for 11,200,000,000, or thereabouts, of 91^iay bills a**i for $400,000,000, or thereabouts, of 182-day bills. The details of the two series are as follow* •wry bills Mim Of A0CBPIED SQLniay jareastiry 17s 1»60 COWETIflfE BIDS? mtmmm Approx. mquir. i rsotmeI activity Approx. Equir. Prlos Annual Rate Price Annual Bate High Low a/ £/ 88 13 9mmm»mm999t99t99'mmm9»mmmf99>9t mm*m9m*mmmm9mMmm»mMmimmmmmmm9m 98.96b a/ 98.926 98.9U7 k.096% h.2h9% 4*166^ mm9909mm0m99*imm*'mmmfm*t99til9. _ . ) ; « H » « n > « M W M « M M H M M M I 9t.602W 97.Sit 97*57$ 4.74& U-898j_ 4.79# Excepting 3 tenders totaling $1,000,000 Excepting 3 tenders totaling $624,000 peroent of the amount of 91~d*y bills bid for at the loir prloe was accepted percent of the amount of 182-day bills bid for at the Ion price was accepted TOTAL TENDERS APPLIES FOR AKD ACCEPTED BI FEDERAL RESERVE DISTRICTS! District Applied year im^mWmmmmmtmimmmm9mm99mmm Boston Hew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Kansas City ijajuLss San Francisco & 28,859,000 # 18,859,000 $ 7,596,000 * 7,596,000 1,1*03,388,000 713,388,000 516,235,000 217,1*1*5,000 1*0,500,000 30,500,000 9,1*17,000 9,1*17,000 31,91*1,000 30,1*1*1,000 27,320,000 27,320,000 17,761,000 17,761,000 1,868,000 1,862,000 33,729,000 33,729,000 5,1*18,000 5,lil8,000 206,375,000 189,775,000 87,001,000 80,001,000 20,581,000 20,581,000 7,977,000 7,977,000 13,1»35,000 13,1*35,000 3,202,000 3,202,000 38,633,000 38,633,000 8,518,000 8,518,000 21,1*73,000 21,1*73,000 3,376,000 3,376,000 77,153,000 72,153,000 32,954.000 27,95U,OO0 TOTALS 11,933,828,000 11,200,728,0000/: #710,876,000 ^00,066,0008/ of Includes #295,905,000 - tenders accepted at the average pries of 98.9 Zf Includes $53,776,000 noncompetitive tenders accepted at the average pries of 97*57 TREASURY DEPARTMENT WASHINGTON, D.C RELEASE A. M. NEWSPAPERS, Tuesday, September 15, 1959 A-629 , 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 June 18, 19593 & nd the other series to be dated September 17, 1959* which were offered on September 10, were opened at the Federal Reserve Banks on September ll*. 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 t 91-day Treasury bills maturing December 17, 1959 Price High Low Average 98.961* a/ 98.926 "" 98.91*7 Approx. Equiv< Annual Rate IN 098* h.2k9% 14.166$ 182-day Treasury bills maturing March 17, I960 Price 97.602 b / 97.521* ~ 97,575 Approx. Equiv. Annual Rate lw 7l*3# 1N898# I N 796$ a/ Excepting 3 tenders totaling $1,000,000 F/ Excepting 3 tenders totaling $821*, 000 F8 percent of the amount of 91-day bills bid for at the low price was accepted 13 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 $ 28,859,000 1,1*03,388,000 1|0,500,000 31,91*1,000 17,761,000 33,729,000 206,375,000 20,581,000 13,1*35,000 38,633,000 21,1473,000 77,153,000 . ^ — — TOTALS IIIIIMliM 18,859,000 713,388,000 30,500,000 30,1*1*1,000 17,761,000 33,729,000 189,775,000 20,581,000 13,1*35,000 38,633,000 21,1*73,000 72,153,000 % Applied For Accepted $ 7,596,000 516,235,000 9,1*17,000 27,320,000 1,862,000 5,1*18,000 87,001,000 7,977,000 3,202,000 8,518,000 3,376,000 3___5__.000 $ 7,596,000 217,1*1*5,000 9,1*17,000 27,320,000 1,862,000 5,1*18,000 80,001,000 7,977,000 3,202,000 8,518,000 3,376,000 27,951*, 000 $710,876,000 $1*00,096, OOOd/ • Tl •>»«^«^^^fc____.,_,_.i__| $1,933,828,000 $1,200,728,000c/ c/ Includes $295,905,000 noncompetitive tenders accepted at the average price of 98.91*7 \l Includes $53,776,000 noncompetitive tenders accepted at the average price of 97.575 I am sure that all of you will give most careful attention to this problem. You should, through methods available to you, determine how many depositors you believe are, for one reason or another, failing to report in full interest received or credited. Some of you now have bookkeeping systems which do inform you of depositors who do not present their books for crediting. These banks know how many depositors at the end of the year are probably not accurately reporting their Interest because they have not checked with the bank to determine the amount of interest earned. You may have some other methods of checking the extent of the problem. The purpose of such inquiries would be to determine for yourselves whether a problem exists and if it does what is its magnitude. The Treasury, the Internal Revenue Service, and the Ways and Means Committee, among others, are at work attempting to evaluate this problem. Our Information indicates that the failure to report interest received does present a troublesome question. I am sure that all of us hope it can be solved through the voluntary action of those who are receiving interest payments. We believe that a frank discussion of the problem, a consideration of alternative methods of making sure that interest is reported and the urging of voluntary compliance will be helpful. In fairness to wage earners who are subject to the withholding system and in fairness to individuals who file correct tax returns and pay their taxes in full, we cannot allow this area of failure to report to continue to exist without taking steps, voluntary if possible, otherwise mandatory, to remedy the situation. We ask for your understanding and assistance. In your own interests and in the interest of your depositors, we ask your aid in measuring the extent of the problem and finding the solution which will rectify the situation with the least possible inconvenience and expense to your depositors. 0O0 /> r* n S t imm W >^ W - 8he should include, it nevertheless would be an effective means h ?F i n g i n S home to the depositor the fact that interest credited, wnether or not received, must be included in personal income for Federal income tax purposes. I assume that these suggestions will not cause much enthusiasm on their first consideration. If adopted, they would add to your expense and, since you are mutual institutions, amounts paid out come out of depositors1 funds. In addition, many of your depositors desire complete secrecy as to their accounts. They will not welcome receipt of a notice. The proposal, then, involves expense, inconvenience and annoyance both for your institutions and for your depositors. The mailing of notices, however, would, in my opinion, be an effective voluntary tool in assisting depositors in properly filing their tax returns and reporting interest received. The alternative to failing to solve this problem on a voluntary basis could be the proposal of legislation intended to make more certain the proper reporting of interest due. Such legislation might well call for withholding. As you know, mutual savings institutions receive special treatment under the Federal income tax law. One of the reasons frequently urged In support of this special tax treatment is the fact that the banks are mutual. All of the assets are held for the benefit of depositors and the depositors are required to report interest received or credited on their personal income tax returns and pay a tax thereon if they are in a taxable bracket. It is therefore contended that it is proper to allow savings banks special tax treatment to recognize their mutuality and to avoid double taxation. Obviously, if through failure to report — either intentionally or otherwise — only a minority of depositors report interest received or credited and pay taxes on it, one of the grounds frequently urged for the special tax treatment which mutual savings banks receive fails to stand up under examination. For this reason, among others, I have no hesitation to urge you carefully to examine this problem and, if necessary, to make expenditures to help solve It on a voluntary basis. Legislation might not be forthcoming if no voluntary action is taken in this field. Legislation may result even though all possible voluntary steps are taken. My purpose in discussing this matter with you this morning is to call your attention to the problem, to indicate its general magnitude as we measure it, and to urge you to join with us in seeking voluntary correction of the situation. r> r> .^» (L* V_/ w - 7as possible, join together in a program of education based on the premise that much of the failure to report in this area is due to inadequate information and carelessness. We need a planned program designed to advise bank depositors of the fact that the interest which they receive is part of their personal income in the year credited and must be reported as such whether withdrawn from the bank or left on deposit subject to future withdrawal. We in the Treasury Department can do our part by participating In discussions such as the one we are now having, by changing and clarifying the instructions and the tax forms distributed by the Internal Revenue Service, and perhaps by preparing specific bulletins or notices to be distributed by interest paying institutions to their depositors. We can make clear the obligation to report interest received or credited and the penalties which will be applied if such action is not taken. You, in oral statements and in communications to your depositors, can make the same approach. It has recently been suggested that all savings institutions be requested to consider the advisability of causing a legend to be printed in red on the face of all new passbooks and placed by sticker on all existing passbooks. This legend would read: "You are informed that interest paid or credited on this account should be included by you In determining your income for the purposes of computing Federal income taxes." There is another voluntary step which I believe would be even more effective than any of those thus far suggested. This would be the sending of a notice to each depositor at the graar end informing him of the amount of interest paid or credited to his account and informing him that the information was sent to assist in the preparation of his Federal income tax return. It probably would not be necessary to send such notices to every depositor. Perhaps the notices need be sent only to depositors whose annual interest received or credited exceeded ten dollars. Some other amount of interest might be chosen as the dividing line. Less burdensome would be the mailing at each year end of a notice to each depositor that interest received or credited by the depositor must be included by the recipient of the interest for the purpose of determining personal income received for purposes of computing Federal income taxes. While not as effective as informing the depositor of the exact amount of the interest which y \ 5 Cm mm. JL. - 5 We do not have a breakdown which shows the percent of savings bank interest which was not reported or the percent of interest not reported from other sources. We have made studies of the reporting of interest paid on E Bonds and have discovered that the extent of under-reporting in this area is high although the amount of money involved is a relatively small part of the total interest gap. I can assure you that we are not unmindful of this particular under-reporting situation and the responsibility which it places on the Treasury. Certainly, we have no reason to believe that there is any more serious failure to report savings bank interest than there is to report interest from other sources. On the other hand, we have no information which leads to the conclusion that the recipients of savings bank interest are more meticulous in the reporting of sums received than are the recipients of interest from other sources Based on information available as the result of a study of a sample of the tax returns filed in 1956 and the bringing forward of a more detailed study made in 19^8, the evidence seems clear to us that there is a substantial underreporting of interest. In a study published by the National Bureau of Economic Research, Inc. in 1955, written by Lawrence Seltzer and entitled "Interest as a Source of Personal Income and Tax Revenue", it is stated that in the period 1930-1950 interest reported on taxable income tax returns represented only about one-fourth, on the average, of total personal interest receipts. Because we wish to be as accurate as possible in appraising the extent of the under-reporting problem in the interest field, additional, although limited, studies are going forward at the present time. These include sampling and spot checking of certain types of returns filed for the year 1958. Until these studies have been finished and until we have had the benefit of comments and suggestions from representatives of various interest paying institutions, we will not reach final conclusions as to the dollar amount of interest which individuals fail to report and the taxes lost thereby. We are certain enough however of the size of the problem to call the matter to your attention at this time and ask for your assistance in bringing home to all recipients of interest their obligation to report fully interest received. It is my personal belief that much of the failure to report savings bank interest, as well as interest received from other sources, comes about through carelessness or ignorance. - 4A study of the general problem of under-reporting of income inevitably leads to an examination of income components such as dividend and interest income reported by individuals. Because dividends are paid only by corporations, all of which are statutory creatures and subject to State and Federal regulation and reporting requirements, it is less difficult to estimate the gap in the dividend field than is the case for other types of income. A recent Treasury Department study based on statistics from the returns filed for 1956 indicates a gap between the amount of dividends paid to individuals by corporations and the amount of dividends reported on individual income tax returns of approximately one billion four hundred million dollars, or about fourteen percent of the total amount of dividends that should have been reported. In deriving this figure from the $14,498 million of dividends paid by domestic corporations a number of adjustments were made to allow for dividends paid to other corporations, foreigners, fiduciaries, corporate pension funds, and tax-exempt organizations, as well as to individuals whose incomes were so small that they were not required to file tax returns. Even after such allowances it appears that $10,356 million of dividends were paid to individuals, but only $8,o92 million were reported in individual tax returns. A portion of non-reported dividend income undoubtedly would not have been taxable although reported. In many cases individuals who received total dividends of less than $50 did not report them since such amounts were offset by the $50 dividend exclusion. Had these individuals reported the dividend income received, no additional tax would have been forthcoming. Even after generous assumptions concerning dividend income which would not be taxable, our studies do indicate a substantial tax loss through failure of taxpayers to report dividends received. Turning now to interest payments, it has been estimated that in 1956 less than one-half of interest received by individuals was reported by them on their income tax returns. In measuring this problem it should be clearly understood that much of the unreported interest would not have been taxable if reported. Estimates indicate that individuals failed to report more than $3 billion of interest received or credited. I refer here to all types of interest, including interest on corporate bonds, interest on deposits in commercial and savings banks and building and loan associations, interest accrued or paid on E Bonds and other U. S. securities, and interest received from insurance companies and from brokerage accounts. _~ - w - 3who know how best to contribute to economic growth. We need people who understand that there is no substitute for hard work, careful planning and true saving. We will grow as a country only if we produce more than we consume and use our surplus to provide new sources of production. With assurance that the value of their dollars will be protected, people will be willing to work harder, save more and invest more. Our economy will grow only if we have the savings needed for investment capital. We need more however than just a balanced budget. The public debt must be reduced. If in bad times we allow ourselves to run a deficit in order to stimulate recovery, we must pay off that debt in good times. Otherwise, we shall engage in periodic increases in the public debt without countervailing reductions. If we are realistic we know that we will not achieve debt reduction unless we can find support for a program calling for the reduction of expenditures on the Federal level. Here each of you can make a contribution. It is easy indeed to suggest that public expenditures dear to someone else's heart should be reduced or eliminated. We need far more than that. Every one of us must be prepared to accept and even to request limitation of those expenditures in which he has an individual special interest. Holding down expenditures means to hold down everybody's expenditures. When everybody accepts that principle for a fact, then we will have established fiscal discipline and the budget will be under control. One step in insuring fiscal soundness is to make certain that we collect in full all taxes due and owing to the United States. It is for this reason that I want to discuss with you a problem of importance to all of us as taxpayers, but of particular importance to you as you represent your depositors — the recipients of interest paid or credited on deposit accounts. This problem is one of making certain that taxpayers report in full, for Federal income tax purposes the total amount of dividends received and interest payments received or credited. As you know, there has recently been a marked increase in the attention given by legislators, tax officials, and students of tax law to the gap which exists between the income received by individuals and the income reported on the tax returns of individuals. In fact, the income tax base in 1957 represented about 42.6 percent of total personal income. Most of this difference is accounte for by exemptions or deductions authorized by the law or items not treated as income for income tax purposes, such as imputed rent and certain types of income in kind. Some part of the difference, however, is represented by sums received by individuals which should be reported but which were omitte Weakening our economy will play into the hands of those who threaten our way of life just as surely as weakening our military position. I am sure you will agree that the spending record of the 86th Congress has been quite different from that which was predicted when the Congress convened in January of this year. The record has been different because more and more the people of this country have responded to sound fiscal leadership which believes that there is nothing more important to work for and stand for and fight for than fiscal soundness. Some people will tell you that all the government needs to do to aid in expanding the economy is to spend more money; that the economy will then grow faster, and we will have more resources for everything for defense, for housing, for personal consumption. Frankly, in my opinion this is a short-sighted and an unsound doctrine. To argue that with a larger output costs tend to fall, overlooks the basic fact that a rising demand for labor and raw materials drives up costs. An economy running under forced draft, like a war economy, is bound to be inflationary. For a short while some people — not all by any means — will enjoy the illusion of good times that the inflationary boom will bring. This is an attraction on which this doctrine has been sold time after time. A year or two after you have started off on this inflationary spiral the exhilaration passes off, and you begin to pay the price. An inflationary society is a disorganized and an inefficient one. It is a very poor base from which to conduct a long-term worldwide struggle. It's a particularly poor base from which to meet the strain of a sudden emergency. Under those conditions we would have a hard time assuming the additional financial strain of even a minor emergency if we were to go into one already overextended. Let me make it very clear that there is no striving for a balanced budget simply for the sake of achieving balance. A balanced budget is an important and an understandable symbol of sound fiscal policy and of good government. Its primary purpose is to safeguard the savings and the purchasing power of the dollars of every American. It is imperative that all of us who know this to be true constantly inform the people of this country of the reasons why we need balanced budgets and the problems which surely will follow if we continue for an indefinite period of time to spend substantially more than we collect. A balanced budget works for a growing economy. It works against inflation. It inspires confidence. It is one thing we can strive for to assure economic growth and expansion. If we are to continue to carry for an indefinite time the heavy burdens on the military and civilian fronts which the cold war makes essential, we must have an economy which will grow, which will be dynamic. We need informed businessmen, workers, savers and investors FOR RELEASE ON DELIVERY TREASURY DEPARTMENT Washington REMARKS BY FRED C. SCRIBNER, JR., UNDER SECRETARY OF THE TREASURY, AT THE 42ND ANNUAL CONVENTION OF SAVINGS BANKS ASSOCIATION OF MASSACHUSETTS, HOTEL WENTWORTH-BY-THE-SEA, PORTSMOUTH, NEW HAMPSHIRE, SEPTEMBER 19, 1959, at 11:30 A. M. You meet here in convention at a time when the indebtedness of the Federal Government is the heaviest in history. On the 10th day of this month the Federal debt was $290,160,000,000. This sum is more than one-fifth of all the money spent by the Federal Government since this country came into existence in 1776. For the fiscal year which ended last June, the Federal Government operated with a deficit of $12-1/2 billion — the largest peacetime deficit in any single year. At present rates the annual interest cost of the Federal debt is $8-1/2 billion. These are chilling figures. Of even greater significance, in my opinion, is the fact that the last several years have seen, at an ever-increasing rate, the growth of the indebtedness of State and local governments. In fact, both in dollars and percentage-wise, the indebtedness of State and local governments has increased much more in the last decade than the Federal debt. The State and local governmental debt outstanding at the end of fiscal 1949 was $21 billion. At the end of fiscal 1959 just ten years later — it was $62 billion. It has nearly tripled in ten years. In the same period of time the Federal debt increased $32 billion — a significant sum but substantially less than the total increase in State and local governmental indebtedness. I am sure that none of us minimizes the grave significance of these debt figures. We cannot too frequently call them to the v attention of the American people. At every level of government we have been living beyond our income. How much further must we plunge into debt before we read correctly the warning signals which fly today' However, I do not participate in this program with a sense of discouragement. Although it was said that it couldn't be done, the President submitted to the Congress a balanced budget for the year I960 and has led a vigorous fight for its adoption. He is engaged now in putting together a balanced budget for 196l. The case has been taken directly to the people of this country. I believe they are now coming to realize that the United States cannot continue indefinitely to live beyond its income and still have the internal strengths necessary to fight effectively the external challenges which we face on both military and economic fronts, A-630 RELEASE ON DELIVERY TREASURY DEPARTMENT Washington REMARKS BY FRED C. SCRIBNER, JR., UNDER SECRETARY OF THE TREASURY, AT THE 42ND ANNUAL CONVENTION OF SAVINGS BANKS ASSOCIATION OF MASSACHUSETTS, HOTEL WENTWORTH-BY-THE-SEA, PORTSMOUTH, NEW HAMPSHIRE, SEPTEMBER 19, 1959, at 11:30 A. M. You meet here in convention at a time when the indebtedness of the.Federal Government is the heaviest in history. On the 10th day of this month the Federal debt was $290,160,000,000. This sum is more than one-fifth of all the money spent by the Federal Government since this country came into existence in 1776. For the fiscal year which ended last June, the Federal Government operated with a deficit of $12-1/2 billion — the largest peacetime deficit in any single year. At present rates the annual interest cost of the'Federal debt is $8-1/2 billion. These are chilling figures. Of even greater significance, in my opinion, is the fact that the last several years have seen, at an ever-increasing rate, the growth of the indebtedness of State and local governments. In fact, both in dollars and percentage-wise, the indebtedness of State and local governments has increased much more in the last decade than the Federal debt. The State and local governmental debt outstanding at the end of fiscal 1949 was $21 billion. At the end of fiscal 1959 just ten years later — it was $62 billion. It has nearly tripled in ten years. In the same period of time the Federal debt increased $32 billion — a significant sum but substantially less than the total increase in State and local governmental indebtedness. I am sure that none of us minimizes the grave significance of these debt figures. We cannot too frequently call them to the attention of the American people. At every level of government we have been living beyond our income. How much further must we plunge into debt before we read correctly the warning signals which fly today? However, I do not participate in this program with a sense of discouragement. Although it was said that it couldn't be done, the President submitted to the Congress a balanced budget for the year I960 and has led a vigorous fight for its adoption. He is engaged now in putting together a balanced budget for 196l. The case has been taken directly to the people of this country. I believe they are now coming to realize that the United States cannot continue indefinitely to live beyond its income and still have the internal strengths necessary to fight effectively the external challenges which we face on both military and economic fronts. A-630 217 - 2 Weakening our economy will play into the hands of those who threaten our way of life just as surely as weakening our military position. ° * I am sure you will agree that the spending record of the 86th Congress has been quite different from that which was predicted when the Congress convened in January of this year. The record has been different because more and more the people of this country have responded to sound fiscal leadership which believes that there is nothing more important to work for and stand for and fight for than fiscal soundness. : \ Some people will tell you that all the government needs to do to aid in expanding the economy is to spend more money; that the economy will then grow faster, and we will have more resources for everything for defense, for housing, for personal consumption. Frankly, in my opinion this is a short-sighted and an unsound doctrine. To argue that with a larger output costs tend to fall, overlooks the basic fact that a rising demand for labor and raw materials drives up costs. An economy running under forced draft, like a war economy, is bound to be inflationary. For a short while some people — not all by any means — will enjoy the illusion of good times that the inflationary boom will bring. This Is an attraction on which this •doctrine has been sold time after time. A year or two after you have started off on this inflationary spiral the exhilaration passes off, and you begin to pay the price. An inflationary society Is a disorganized and an inefficient one. It is a very poor base from which to conduct a long-term worldwide struggle. It's a particularly poor base from which to meet the strain of a sudden emergency. Under those conditions we would have a hard time assuming the additional financial strain of even a minor emergency if we were to go Into one already overextended. Let me make it very clear that there Is no striving for a balanced budget simply for the sake of achieving balance. A balanced budget s is an Important and an understandable symbol of sound fiscal policy and of good government. Its primary purpose is to safeguard the savings and the purchasing power of the dollars of every American. It is imperative that all of us who know this to be true constantly inform, the people of this country of the reasons why we need balanced budgets and the problems which surely will follow if we continue for an Indefinite period of time to spend substantially more than we collect. A balanced budget works for a growing economy. It works against inflation. It inspires confidence. It is one thing we can strive for to assure economic growth and expansion. If we are to continue to carry for an Indefinite time the heavy burdens on the military and civilian fronts which the cold war makes essential, we must have an economy which will grow., which will be dynamic. We need informed businessmen, workers, savers and investors 01 -u u J- ^ - 3who know how best to contribute to economic growth. We need people who understand that there is no substitute for hard work, careful planning and true saving. We will grow as a country only if we produce more than we consume and use our surplus to provide new sources of production. With assurance that the value of their dollars will be protected, people will be willing to work harder, save more and invest more. Our economy will grow only if we have the savings needed for investment capital. We need more however than just a balanced budget. The public debt must be reduced. If in bad times we allow ourselves to run a deficit in order to stimulate recovery, we must pay off that debt in good times. Otherwise, we shall engage in periodic increases in the public debt without countervailing reductions. If we are realistic we know that we will not achieve debt reduction unless we can find support for a program calling for the reduction of expenditures on the Federal level. Here each of you can make a contribution. It is easy indeed to suggest that public expenditures dear to someone else's heart should be reduced or eliminated. We need far more than that. Every one of us must be prepared to accept and even to request limitation of those expenditures in which he has an individual special interest. Holding down expenditures means to hold down everybody's expenditures. When everybody accepts that principle for a fact, then we will have established fiscal discipline and the budget will be under control. One step In insuring fiscal soundness is to make certain that we collect in full all taxes due and owing to the United States. It is for this reason that I want to discuss with you a problem of importance to all of us as taxpayers, but of particular importance to you as you represent your depositors — the recipients of interest paid or credited on deposit accounts. This problem is one of making certain that taxpayers report in full, for Federal income tax purposes, the total amount of dividends received and interest payments received or credited. As you know, there has recently been a marked increase in the attention given by legislators, tax officials, and students of tax law to the gap which exists between the income received by individuals and the income reported on the tax returns of individuals. In fact, the income tax base in 1957 represented about 42.6 percent of total personal Income. Most of this difference is accounted for by exemptions or deductions authorized by the law or items not treated as income for income tax purposes, such as imputed rent and certain types of income In kind. Some part of the difference, however, is represented by sums received by individuals which should be reported but which were omitted. - i - 4- ?1 Q Strnm JL \y A study of the general problem of under-reporting of income inevitably leads to an examination of income components such as dividend and interest income reported by individuals. Because dividends are paid only by corporations, all of which are statutory creatures and subject to State and Federal regulation and reporting requirements, it is less difficult to estimate the gap In the dividend field than is the case for other types of income. A recent Treasury Department study based on statistics from the returns filed for 1956 indicates a gap between the amount of dividends paid to individuals by corporations and the amount of dividends reported on individual Income tax returns of approximately one billion four hundred million dollars, or about fourteen percent of the total amount of dividends that should have been reported. In deriving this figure from the $14,498 million of dividends paid by domestic corporations a number of adjustments were made to allow for dividends paid to other corporations, foreigners, fiduciaries, corporate pension funds, and tax-exempt organizations, as well as to individuals whose incomes were so small that they were not required to file tax returns. Even after such allowances it appears that $10,356 million of dividends were paid to individuals, but only $8,892 million were reported in Individual tax returns. A portion of non-reported dividend income undoubtedly would not have been taxable although reported. In many cases individuals who received total dividends of less than $50 did not report them since such amounts were offset by the $50 dividend exclusion. Had these individuals reported the dividend income received, no additional tax would have been forthcoming. Even after generous assumptions concerning dividend income which would not be taxable, our studies do indicate a substantial tax loss through failure of taxpayers to report dividends received. Turning now to interest payments, it has been estimated that in 1956 less than one-half of interest received by individuals was reported by them on their income tax returns. In measuring this problem it should be clearly understood that much of the unreported interest would not have been taxable if reported. Estimates Indicate that individuals failed to report more than $3 billion of interest received or credited. I refer here to all types of interest, including interest on corporate bonds, Interest on deposits in commercial and savings banks and building and loan associations, interest accrued or paid on E Bonds and other U. S. securities, and interest received from insurance companies and from brokerage accounts. 220 - 5We do not have a breakdown which shows the percent of savings bank Interest which was not reported or the percent of interest not reported from other sources. We have made studies of the reporting of interest paid on E Bonds and have discovered that the extent of under-reporting in this area is high although the amount of money involved is a relatively small part of the total interest gap. I can assure you that we are not unmindful of this particular under-reporting situation and the responsibility which it places on the Treasury. Certainly, we have no reason to believe that there is any more serious failure to report savings bank interest than there is to report interest from other sources. On the other hand, we have no information which leads to the conclusion that the recipients of savings bank interest are more meticulous in the reporting of sums received than are the recipients of interest from other sources. Based on information available as the result of a study of a sample of the tax returns filed in 1956 and the bringing forward of a more detailed study made in 1948, the evidence seems clear to us that there is a substantial underreporting of interest. In a study published by the National Bureau of Economic Research, Inc. in 1955, written by Lawrence Seltzer and entitled "Interest as a Source of Personal Income and Tax Revenue", it is stated that in the period 1930-1950 interest reported on taxable income tax returns represented only about one-fourth, on the average, of total personal interest receipts. Because we wish to be as accurate as possible in appraising the extent of the under-reporting problem in the interest field, additional, although limited, studies are going forward at the present time. These include sampling and spot checking of certain types of returns filed for the year 1958. Until these studies have been finished and until we have had the benefit of comments and suggestions from representatives of various interest paying institutions, we will not reach final conclusions as to the dollar amount of interest which individuals fail to report and the taxes lost thereby. We are certain enough however of the size of the problem to call the matter to your attention at this time and ask for your assistance in bringing home to all recipients of interest their obligation to report fully interest received. It is my personal belief that much of the failure to report savings bank interest, as well as interest received from other sources, comes about through carelessness or ignorance. -6- 221 In the case of interest credited by banks many individuals do not withdraw such Interest in the year in which it is earned and credited. Many depositors do not even present their passbooks for crediting. Many taxpayers do not, in fact, know how much interest they should report. In many instances the amount of interest is small and is inadvertently overlooked. In many other cases I believe that the individuals involved, while they may have presented their passbooks for the crediting of Interest or may have even withdrawn the same, do not keep a set of personal books, are not skilled in the tax law and fail because of incomplete reqords to report interest earned when completing their returns. If these assumptions are correct, then by bringing clearly and forcibly to the attention of the recipients of bank interest their obligation to report the amount credited, whether or not it is withdrawn, we may well be able to reduce substantially the amount of such interest which is unreported. Those who believe that failure to report is intentional have, of course, little sympathy with the belief that the problem can be remedied by advising bank depositors of their obligations under the Internal Revenue Code and Informing them of the amounts which they should report. Those who believe the failure to report is, in the main, intentional believe that the only effective remedy is to establish a system of withholding. Under such a system, for example, each savings bank would withhold a certain amount of the interest due each depositor. Amounts withheld would be forwarded to the Internal Revenue Service and the depositors would be notified of the amount withheld and would claim the same as income taxes paid for their account. Admittedly, in the case of savings banks, this would be an effective method of collecting taxes. It would, however, place heavy burdens on the savings banks and their depositors and, in many Instances, impose great inconvenience on depositors who are dependent on their interest for the payment of living expenses. There would be many cases of over-withholding. In spite of the many problems, it still may be that the situation, after further study, will require the adoption of a law imposing a withholding system as to interest payments. As of today, however, I am not persuaded that the time has arrived when we should move for legislation to require such withholding. Before advocating legislation I would like to see the Treasury Department, the Revenue Service, mutual savings banks and their officers, other interest paying institutions, and all those who are Interested in keeping our tax procedures as simple 222 - 7as possible, join together in a program of education based on the premise that much of the failure to report in this area is due to inadequate information and carelessness. We need a planned program designed to advise bank depositors of the fact that the interest which they receive is part of their personal income in the year credited and must be reported as such whether withdrawn from the bank or left on deposit subject to future withdrawal. We in the Treasury Department can do our part by participating in'"discussions such as the one we are now having, by changing and clarifying the instructions and the tax forms distributed by the Internal Revenue Service, and perhaps by preparing specific bulletins or notices to be distributed by interest paying institutions to their depositors. We can make clear the obligation to report interest received or credited and the penalties which will be applied if such action is not taken. You, in oral statements and in communications to your depositors, can make the same approach. It has recently been suggested that all savings institutions be requested to consider the advisability of causing a legend to be printed in red on the face of all new passbooks and placed by sticker on all existing passbooks. This legend would read: "You are Informed that interest paid or credited on this account should be included by you in determining your income for the purposes of computing Federal income vaxe s. There is another voluntary step which I believe would be even more effective than any of those thus far suggested. This would be the sending of a notice to each depositor at the year end informing him of the amount of interest paid or credited to his account and informing him that the Information was sent to assist in the preparation of his Federal Income tax return. It probably would not be necessary to send such notices to every depositor. Perhaps the notices need be sent only to depositors whose annual interest received or credited exceeded ten dollars. Some other amount of interest might be chosen as the dividing line. Less burdensome would be the mailing at each year end of a notice to each depositor that interest received or credited by the depositor must be included by the recipient of the Interest for the purpose of determining personal income received for purposes of computing Federal income taxes. While not as effective as informing the depositor of the exact amount of the Interest which 223 - 8he should include, it nevertheless would be an effective means of bringing home to the depositor the fact that interest credited, whether or not received, must be included in personal income for Federal income-tax purposes. I assume that these suggestions will not cause much enthusiasm on their first consideration. If adopted, they would add to your expense and, since you are mutual institutions, amounts paid out come out of depositors' funds. In addition, many of your depositors desire complete secrecy as to their accounts. They will not welcome receipt of a notice. The proposal, then, involves expense, inconvenience and annoyance both for your institutions and for your depositors. The mailing of notices, however, would, in my opinion, be an effective voluntary tool in assisting depositors in properly filing their tax returns and reporting interest received. The alternative to failing to solve this problem on a voluntary basis could be the proposal of legislation intended to make more certain the proper reporting of interest due. Such legislation might well call for withholding. As you know, mutual savings institutions receive special treatment under the Federal income tax law. One of the reasons frequently urged in support of this special tax treatment is the fact that the banks are mutual. All of the assets are held for the benefit of depositors and the depositors are required to report interest received or credited on their personal income tax returns and pay a tax thereon if they are in a taxable bracket. It is therefore contended that it is proper to allow savings banks special tax treatment to recognize their mutuality and to avoid double taxation. Obviously, if through failure to report — either intentionally or otherwise — only a minority of depositors report interest received or credited and pay taxes on It, one of the grounds frequently urged for the special tax treatment which mutual savings banks receive fails to stand up under examination. For this reason, among others, I have no hesitation to urge you carefully to examine this problem and, if necessary, to make expenditures to help solve it on a voluntary basis. Legislation might not be forthcoming if no voluntary action is taken in this field. Legislation may result even though all possible voluntary steps are taken. My purpose in discussing this matter with you this morning is to call your attention to the problem, to indicate its general magnitude as we measure it, and to urge you to join with us in seeking voluntary correction of the situation. 224 I am sure that all of you will give most careful attention to this problem. You should, through methods available to you, determine how many depositors you believe are, for one reason or another, failing to report in full interest received or credited. Some of you now have bookkeeping systems which do inform you of depositors who do not present their books for crediting. These banks know how many depositors at the end of the year are probably not accurately reporting their interest because they have not checked with the bank to determine the amount of interest earned. You may have some other methods of checking the extent of the problem. The purpose of such inquiries would be to determine for yourselves whether a problem exists and if it does what is Its magnitude. The Treasury, the Internal Revenue Service, and the Ways and Means Committee, among others, are at work attempting to evaluate this problem. Our information indicates that the failure to report interest received does present a troublesome question. I am sure that all of us hope it can be solved through the voluntary action of those who are receiving interest payments. We believe that a frank discussion of the problem, a consideration of alternative methods of making sure that interest Is reported and !the urging of voluntary compliance will be helpful. In fairness to wage earners who are subject to the withholding system and in fairness to Individuals who file correct tax returns and pay their taxes in full, we cannot allow this area of failure to report to continue to exist without taking steps, voluntary If possible, otherwise mandatory, to remedy the situation. We ask for your understanding and assistance. In your own interests and in the interest of your depositors, we ask your aid in measuring the extent of the problem and finding the solution which will rectify the situation with the least possible inconvenience and expense to your depositors. 0O0 TREASURY D E P A R T M E N T -?• WASHINGTON, D.C IMMEDIATE RELEASE, Muiidaj, Augum 1/, lyyy. Q~ During J^fty 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 ~* f J°j1infl. ^ " . 0O0 TREASURY DEPARTMENT 27 WASHINGTON, D.C IMMEDIATE RELEASE Tuesday, September 15* 1959 A-631 During August 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 $18,255,150. 0O0 - 6The American saver is not a member of a special interest group; he is the man who owns one of the 22,000,000 accounts in mutual savings banks, one of the 25,000,000 accounts in savings and loan associations, or one of the 37,000,000 savings accounts in commercial banks. He is one of the 40,000,000 Americans who own Savings Bonds. He is one of the 112,000,000 with savings in the form of life insurance or one of the 14,000,000 who are beneficiaries of nonInsured pension plans. He may also be a man who, when his employment contract is settled, is entitled to assurance that the purchasing power of the dollars in which his wages are fixed will not be whittled away by inflation. The softest kind of money is, of course, printing press money — such as the Continental currency of the Revolutionary War days and the "greenbacks" of the Civil War. No one today is an outright advocate of printing press money. But there are many who advocate what is in essence the same thing. These people believe that the Federal Reserve System should return to the discredited and highly inflationary practice of supporting the prices of Government bonds — to keep interest rates down — in the same way that was done during and after World War II. Every dollar that the Federal Reserve puts out In this way is a high-pox^ered dollar, providing the basis for a $6 growth in the money supply. Such action would spawn the very inflation that ultimately shoots interest rates through the ceiling. Fear of inflation discourages investors from buying bonds; it encourages borrowers to seek credit. Thus, the demand for money rises and the supply subsides. Interest rates go up. Consequently, removal of the 4-1/4 percent ceiling on new issues of long-term Treasury bonds, by permitting the Treasury to manage the debt in the least inflationary way, would actually work for' lower — not higher — interest rates. We are convinced that if the whole borrowing area was open to us — short-term, intermediate, and long-term — we could be borrowing some in each of these areas, spreading our indebtedness, taking advantage of the funds available in these areas and doing a better job and, it may well be, at less cost than we will be required to pay because of the ceiling which the Congress has kept in effect. These are technical matters; but they are matters of the greatest importance to the American people. In a special message to Congress on August 25, the President pointed to the debt management proposals as the most important issue to come before the Congress during the session just ended. We are now in the midst of one of the greatest monetary debates since the campaign days of Williams Jennings Bryan. In 1890 the people of this country voted for sound money and a stable currency. Once again, apparently, the people must be acquainted with the facts about money. They must choose between 0O0 artifically low Interest rates created by soft money, and the inflation that results, or the flexible interestisrates are essential if inflation is to be avoided and growth to bethat healthy, long-lasting, and rewarding. ^9^ — p — 4,„ _L w impact of record credit demands on the part of consumers, small businesses, and other short-term borrowers. This overcrowding means that somebody is going to get pinched, so long as the Treasury has to borrow exclusively on short-term issues. In addition to being inflationary, costly, and unfair to private short-term borrowers such as consumers and small businesses, Treasury financing wholly in the short-term range can only add to future problems of debt management. Currently almost three-fourths of the marketable publie debt matures within five years. As more debt is piled Into this area, the short-term debt will grow, and future refundings of maturing issues will have to be undertaken more frequently and in greater amounts. The situation is comparable to one that might be faced by an individual with a mortgage on his home that matured every two or three years — he would be forced to? refinance that mortgage, if he could, each time it came due, and under whatever conditions might be prevailing at that time. This, to say the least, would not be a desirable arrangement. The Congress has in effect put the Treasury in this same sort of position. It has been alleged that the removal of the 4-1/4 percent.ceiling would raise interest rates. This is simply not the case. The Inflationary aspects of debt management policy under the present ceiling could raise increasing apprehension both here and abroad as to the future value of the dollar. Nothing contribures so strongly to forcing interest rates upward as fear of inflation. Those Investors who want to invest in fixed-dollar obligations — rather than in stocks — will demand higher interest rates to compensate for their expectation of a shrinking purchasing power of the future repayments of principal and interest. Interest rates are determined by the effect of changing market forces. Those who feel that removing the 4-1/4 percent ceiling would raise rates need only look to the market for shorter-term Issues, where no celling applies. For example, Treasury 91-day bill rates in a competitive market have moved up and down with the business cycle — up to almost 2-1/2 percent in 1953, down to 5/8 of 1 percent a year later; up to 3-5/8 percent In 1957, down to 5/8 of 1 percent in mid-1958, and up again to over 4 percent now. Even the 5-year rate has fluctuated from around 2 percent to more than 4 percent within the last 5 years. The refusal of Congress to act in this area — despite the clearcut and pressing need for action — is in effect a renewal of the old conflict between the advocates of soft money and pegged interest rates versus those who stand solidly for sound money and flexible interest rates. This Administration is dedicated to the proposition that sound money is the firm foundation on which an effective antiinflationary program must be based. We believe that there is a fundamental and inescapable duty on the part of the Federal Government to use its financial powers to protect the purchasing power of the billions of dollars of savings of the American people. -4- 23'J response to this demand. When there are more buyers than sellers and the product Is one of universal appeal, prices will Inevitably Increase. Now, there are more borrowers than lenders and the price of money has inevitably increased. It has been said, "Well, let's go back to 1957 conditions." No one, I believe, wishes to secure lower interest rates through bringing on another recession. As Secretary of the Treasury Anderson testified in June: "For a responsible Government, the choice between high levels of business activity and - - employment as opposed to low interest rates is actually no choice at all. Stated differently, high interest rates are not an end in themselves; rather they are the usual accompaniment of the active credit demands that characterize expansion in production employment and income." Thus the choice is between the abnormally low interest rates spawned by recession and unemployment and the somewhat higher levels of rates that characterize a vigorous, growing economy. The choice, it seems to me, Is obvious. The Treasury, unable to spread its borrowing at competitive rates of interest among short, intermediate and long-term obligations, is now forced to crowd all of its borrowing into the short term market. This adds to inflationary pressures for two reasons. In the first place, a long-term bond is a true investment instrument, but a shortterm Treasury security is only a few steps away from being money. It can be sold easily in the market, at or about its redemption price, to obtain funds to spend for goods and services, or the holder can simply wait a few days or weeks until it matures, demand cash from the Treasury, and spend the proceeds. Secondly, commercial banks make up a much larger part of the market for short-term Treasury securities than they do for long-term issues. When banks buy securities they create in the process new deposits, and this adds to the money supply. An expanding money supply, during a period when pressures on economic resources are intensifying, adds momentum to inflationary forces. The handling of our $290 billion debt in a manner which is clearly and decisively inflationary is bad enough, but that's not all. Sole reliance on short-term borrowing is costly today, because interest rates on most securities of less than 5 years1 maturity are higher than those on longer-term issues. It is only common sense that the confinement of all borrowing to one segment of the market tends to drive up interest rates in that part of the market. The fact is that the short-term market is already overcrowded, reflecting the "The responsibility for enacting legislation lies with the Congress. If our recommendations are not enacted as we proposed, we will operate under whatever legislation is enacted to the best of our ability. *5r *3r 7T "We shall, however, continue to press for those parts of our original proposal which have not been granted, and which I am convinced are essential to the best possible handling of our financial affairs in a sound manner." Popular discussion of interest rates is often clouded by misunderstanding of their nature in a free market economy. Frequently it has been incorrectly stated that the level of interest rates is determined by actions of the Federal Reserve authorities. The view is also incorrectly expressed that interest rates somehow are fixed at high levels by large financial institutions. Interest is the price paid for borrowed money. In free credit markets it responds to supply and demand. This being the case, the primary determinants of interest rates are the actions of millions of individuals and institutions rather than those of the Treasury or the Federal Reserve. Today the current pressure for funds by businesses, State and municipal governments, home builders, and other borrowers makes heavy demands on a relatively modest volume of savings and has pushed up interest rates. The Treasury, because of the 4-1/4 percent ceiling, cannot sell new bonds of more than five years' maturity. The Treasury must, therefore, borrow wholly on short-term securities. This is inflationary; under current market conditions it is costly; it hurts consumers and small businesses; and it creates even greater debt management problems for the future. The question has been asked, "If intermediate and long term bonds could be sold two years ago with Interest rates at less than 4-1/4 percent, why cannot they be sold now?" The answer is obvious when it is understood that interest is simply the price paid for borrowed money. The period of declining interest rates which began in the summer of 1957 was also a period of rising unemployment, declining incomes, reduced inventories, and falling output. The demand for money fell off, loans were repaid, easier credit resulted. Interest rates of course declined. Today we have quite a different economy. Before the steel strike more people were at work than ever before in history and at higher wages. Incomes are rising. Except for areas affected by the steel strike, output is expanding in nearly every sector of our economy. We now have a heavy demand for credit. Interest rates have moved up in - 2 In the year ahead the Treasury faces the refinancing of $75 billion of maturing short-term securities. In some ways the volume of this short-term debt is as important a factor in our financing picture as the size of the total debt. Each time the Treasury borrows — either for refunding operations or for new cash — it is a significant event In the financial markets. The size and the frequency of Federal borrowings tend to interfere with the smooth marketing of new corporate, State and local government securities. In order effectively to do its job in handling the public debt ~ and effectively doing the job means not only providing the funds to pay the Government's bills when they are due, but also securing the money in a noninflationary and economical manner — the President in June of this year presented a three-point proposal to Congress. He requested: (l) Removal of the 3.26 percent interest rate ceiling on Savings Bonds; (2) Removal of the 4-1/4 percent Interest rate ceiling on new issues of marketable Treasury bonds; and (3) Increases in the temporary and permanent public debt limits. The Congress acted promptly on the request to increase the debt limit -- not giving all that was asked, but raising the permanent ceiling to $2o5 billion and the temporary ceiling to $295 billion. , It was immediately apparent, however, that the additional authority requested would be difficult to secure. The matter was debated at great length in the Ways and Means Committee of the House. No action was taken. In August the President by special message emphasized the necessity of immediate action to enable the .Treasury properly to handle Its borrowing programs. Finally, in the last rush before adjournment, Congress enacted legislation raising the permissible ceiling rate on Savings Bonds. It also adopted certain technical amendments which would allow advance refunding. Neither the House nor Senate bills contained the authority requested to lift the present statutory ceiling on marketables, a ceiling under which we have operated since 1918, and one not suited to current market conditions nor to the Treasury's need for flexibility in its debt management activities. Immediately after Congress acted, Secretary Anderson issued the following statement: "Time and again I have said that the entire debt management proposal offered by President Eisenhower in early June is the right and best thing for the American people. This is still our firm position. FOR RELEASE ON DELIVERY I I TREASURY DEPARTMENT Washington 233 REMARKS BY FRED C. SCRIBNER, JR., UNDER SECRETARY OF THE TREASURY, AT THE I36TH QUARTERLY MEETING OF THE NEW ENGLAND COUNCIL, PIKE, NEW HAMPSHIRE, SEPTEMBER 18, 1959 AT 1:00 P.M. From the point of view of the Treasury Department, the most important piece of business which Congress left unfinished upon adjournment was granting to the Treasury the additional statutory authority necessary to manage, without adding to inflationary pressures, the record Federal debt which is now in excess of $290 billion. As you meet here today, the indebtedness of the United States is at its highest point In history. The debt increased $12-1/2 .billion in the last thirteen months, the amount of the Federal deficit for the fiscal year 1959. Annual interest cost of the existing debt at present rates is more than $8-1/2 billion — more than one-tenth of total Federal expenditures. The national debt is nearly one-third of all the debt in the United States, public and private. In considering the weight of this Federal indebtedness., amounting to over $1,600 for every individual in the United States, don't overlook the tremendous increase in the indebtedness of State and municipal governments. This debt has nearly tripled in the last ten years. During that period it has grown far more than the Federa] debt. The weight of this indebtedness also lies on the American people who are obligated for the Federal indebtedness. When we consider debt reduction and tax reduction we must measure all of these obligations. What does the management of our tremendous Federal debt mean? The United States Government is the Nation's largest single borrower. In the calendar year 1958 the Treasury issued $69 billion of new marketable securities — $19 billion for cash and $50 billion in refinancing maturities, quite apart from the job of refunding more than $20 billion in short term bills. America's private corporations issued slightly under $10 billion of new bonds and notes last year while new securities issued by State and municipal governments amounted to $7-1/2 billion. A-632 )R RELEASE ON DELIVERY TREASURY DEPARTMENT 234 Washington REMARKS BY FRED C. SCRIBNER, JR., UNDER SECRETARY OF THE TREASURY, AT THE I36TH QUARTERLY MEETING OF THE NEW ENGLAND COUNCIL, PIKE, NEW HAMPSHIRE, SEPTEMBER 18, 1959 AT 1:00 P.M. From the point of view of the Treasury Department, the most important piece of business which Congress left unfinished upon adjournment was granting to the Treasury the additional statutory authority necessary to manage, without adding to inflationary ressures, the record Federal debt which is now in excess of 290 billion. As you meet here today, the indebtedness of the United States is at its highest point in history. The debt increased $12-1/2 .billion in the last thirteen months, the amount of the Federal deficit for the fiscal year 1959. Annual interest cost of the existing debt at present rates is more than $8-1/2 billion — more than one-tenth of total Federal expenditures. The national debt is nearly one-third of all the debt in the United States, public and private. In considering the weight of this Federal indebtedness, amounting to over $1,600 for every individual in the United States, don't overlook the tremendous increase in the indebtedness of State and municipal governments. This debt has nearly tripled in the last ten years. During that period it has grown far more than the Federal debt. The weight of this indebtedness also lies on the American people who are obligated for the Federal indebtedness. When we consider debt reduction and tax reduction we must measure all of these obligations. What does the management of our tremendous Federal debt mean? The United States Government is the Nation's largest single borrower. In the calendar year 1958 the Treasury issued $69 billion of new marketable securities ~ $19 billion for cash and $50 billion in refinancing maturities, quite apart from the job of refunding more than $20 billion in short term bills. America's private corporations issued slightly under $10 billion of new bonds and notes last year while new securities issued by State and municipal governments A-632 amounted to $7-1/2 billion. - 2 • ...^ tl}e year ahead the Treasury faces the refinancing "of $75 * iu? n °„ m^rln& short-term securities. In some ways the volume of this short-term debt is as Important a factor in our financing picture as the size of the total debt. Each time the Treasury borrows -- either for refunding operations or for new cash — it is a significant event in the financial markets. The size and the frequency of Federal borrowings tend to interfere with the smooth marketing of new corporate, State and local government securities. In order effectively to do its job in handling the public debt ~ and effectively doing the job means not only providing the funds to pay the Government's bills when they are due, but also securing the money in a noninf lationary and economical manner -- the President in June of this year presented a three-point proposal to Congress. He requested: (l) Removal of the 3.26 percent interest rate ceiling on Savings Bonds; (2) Removal of the 4-1/4 percent interest rate ceiling on new issues of marketable Treasury bonds; arid (3) Increases in the temporary and permanent public debt limits. The Congress acted promptly on the request to increase the debt limits --not giving all that was asked, but raising the permanent ceiling to $2o5 billion and the temporary ceiling to $295 billion -•It was Immediately apparent, however, that the additional authority requested would be difficult to secure. The matter was debated at great length in the Ways and Means Committee of the House. No action was taken. In August the President by special message emphasized the necessity of immediate action to enable the Treasury properly to handle its borrowing programs. Finally, in the last rush before adjournment, Congress enacted legislation raising the permissible ceiling rate on Savings Bonds. It also adopted certain technical amendments which would allow advance refunding. Neither the House nor Senate bills contained the authority requested to lift the present statutory ceiling on marketables, a celling under which we have operated since 1918, and one not suited to current market conditions nor to the Treasury's need for flexibility In Its debt management activities. Immediately after Congress acted, Secretary Anderson issued the following statement: "Time and again I have said that the entire debt management proposal offered by President Eisenhower in early June is the right and best thing for the American people. This is still our firm position. - 3 "The responsibility for enacting legislation lies with the Congress. If our recommendations are not enacted as we proposed, we will operate under whatever legislation is enacted to the best of our ability. # * * "We shall, however, continue to press for those parts of our original proposal which have not been granted, and which I am convinced are essential to the best possible handling of our financial affairs in a sound manner." Popular discussion of interest rates is often clouded by misunderstanding of their nature in a free market economy. Frequently it has been incorrectly stated that the level of interest rates is determined by actions of the Federal Reserve authorities. The view is also incorrectly expressed that interest rates somehow are fixed at high levels by large financial Institutions. Interest is the price paid for borrowed money. In free credit markets it responds to supply and demand. This being the case, the primary determinants of interest rates are the actions of millions of individuals and institutions rather than those of the Treasury or the Federal Reserve. Today the current pressure for funds by businesses, State and municipal governments, home builders, and other borrowers makes heavy demands on a relatively modest volume of savings and has pushed up interest'rates. The Treasury, because of the 4-1/4 percent ceiling, cannot sell new bonds of more than five years' maturity. The Treasury must, therefore, borrow wholly on short-term securities. This is inflationary; under current market conditions it is costly; It hurts consumers and small businesses; and it creates even greater debt management problems for the future. The question has been asked, "If intermediate and long term bonds could be sold two years ago with interest rates at less than 4-1/4 percent, why cannot they be sold now?" The answer is obvious when it is understood that interest is simply the price paid for borrowed money. The period of declining interest rates which began in the summer of 1957 was also a period of rising unemployment, declining incomes, reduced inventories, and falling output. The demand for money fell off, loans were repaid, easier credit resulted. Interest rates of course declined. Today we have quite a different economy. Before the steel strike more people were at work than ever before in history and at higher wages. Incomes are rising. Except for areas affected by the steel strike, output is expanding in nearly every sector of our economy. We now have a heavy demand for credit. Interest rates have moved up in .4 - 23? response to this demand. When there are more buyers than sellers and the product is one of universal appeal, prices will inevitably increase. Now, there are more borrowers than lenders and the price of money has inevitably increased. It has been said, "Well, let's go back to 1957 conditions." No one, I believe, wishes to secure lower interest rates through bringing on another recession. As Secretary of the Treasury Anderson testified in June: "For a responsible Government, the choice between high levels of business activity and employment as opposed to low interest rates is actually no choice at all. Stated differently, high interest rates are not an end in themselves; rather they are the usual accompaniment of the active credit demands that characterize expansion in production employment and income." Thus the choice is between the abnormally low interest rates spawned by recession and unemployment and the somewhat higher levels of rates that characterize a vigorous, growing economy. The choice, it seems to me, is obvious. The Treasury, unable to spread its borrowing at competitive rates of interest among short, intermediate and long-term obligations, is now forced to crowd all of its borrowing into the short term market. This adds to inflationary pressures for two reasons. In the first place, a long-term bond is a true investment instrument, but a shortterm Treasury security is only a few steps away from being money. It can be sold easily in the market, at or about its redemption price, to obtain funds to spend for goods and services, or the holder can simply wait a few days or weeks until it matures, demand cash from the Treasury, and spend the proceeds. Secondly, commercial banks make up a much larger part of the market for short-term Treasury securities than they do for long-term issues. When banks buy securities they create in the process new deposits, and this adds to the money supply. An expanding money supply, during a period when pressures on economic resources are intensifying, adds momentum to inflationary forces. The handling of our $290 billion debt in a manner which is clearly and decisively inflationary is bad enough, but that's not all. Sole reliance on short-term borrowing is costly today, because interest rates on most securities of less than 5 years' maturity are higher than those on longer-term Issues. It is only common sense that the confinement of all borrowing to one segment of the market tends to drive up Interest rates in that part of the market. The fact is that the short-term market is already overcrowded, reflecting the - 5 - p-50 impact of record credit demands on the part of consumers, small businesses, and other short-term borrowers. This overcrowding means that somebody is going to get pinched, so long as the T w a s S y Safto V borrow exclusively on short-term issues. In addition to being inflationary, costly, and unfair to private short-term borrowers such as consumers and small businesses, Treasury financing wholly in the short-term range can only add to future problems of debt management. Currently almost three-fourths of the marketable public debt matures within five years. As more debt is piled into this area, the short-term debt will grow, and future refundings of maturing issues will have to be undertaken more frequently and in greater amounts. The situation is comparable to one that might be faced by an individual with a mortgage on his home that matured every two or three years -- he would be forced to refinance that mortgage, if he could, each time it came due, and under whatever conditions might be prevailing at that time. This, to say the least, would not be a desirable arrangement. The Congress has in effect put the Treasury in this same sort of position. It has been alleged that the removal of the 4-1/4 percent ceiling would raise interest rates. This is simply not the case. The Inflationary aspects of debt management policy under the present ceiling could raise increasing apprehension both here and abroad as to the future value of the dollar. Nothing contribures so strongly to forcing interest rates upward as fear of inflation. Those investors who want to invest in fixed-dollar obligations — rather than in qtocks — will demand higher interest rates to compensate for their expectation of a shrinking purchasing power of the future repayments of principal and interest. Interest rates are determined by the effect of changing market forces. Those who feel that removing the 4-1/4 percent ceiling would raise, rates need only look to the market for shorter-term issues, where no ceiling applies. For example, Treasury 91-day bill rates in a competitive market have moved up and down with the business cycle ~ up to almost 2-1/2 percent in 1953, down to 5/8 of 1 percent a year later; up to 3-5/8 percent in 1957, down to 5/8 of 1 percent in mid-1958, and up again to over 4 percent now. Even the 5-year rate has fluctuated from around 2 percent to more than 4 percent within the last 5 years. The refusal of Congress to act in this area -- despite the clearcut and pressing need for action — is in effect a renewal of the old conflict between the advocates of soft money and pegged interest rates versus those who stand solidly for sound money and flexible interest rates. This Administration is dedicated to the proposition that sound money is the firm foundation on which an effective antiinflationary program must be based. We believe that there is a fundamental and inescapable duty on the part of the Federal Government to use its powers to protect the purchasing billions offinancial dollars of savings of the American people.power of the The American saver is not a member of a special Interest group; tie is the man who ovms one of the 22,000,000 accounts in mutual savings banks, one of the 25,000,000 accounts in savings and. loan associations, or one of the 37,000,000'savings accounts in commercial banks. He is one of the 40,000,000 Americans who own Savings Bonds. He is one of the 112,000,000 with savings in the form of life insurance or one of the 14,000,000 who are beneficiaries of noninsured pension plans. He may also be a man who, when his employment contract is settled, is entitled to assurance that the purchasing power of the dollars in which his wages are fixed will not be whittled away by inflation. . The softest kind of money is, of course, printing press money — such as the Continental currency of the Revolutionary War days and the "greenbacks" of the Civil War. No one today is an outright advocate of printing press money. But there are many who advocate what is in essence the same thing. These people believe that the Federal Reserve System should return to the discredited and highly inflationary practice of supporting the prices of Government bonds — to keep interest rates down — in the same way that was done during and after World War II. Every dollar that the Federal Reserve puts out In this way is a high-powered dollar, providing the basis for a $6 growth in the money supply. Such action would spawn the very inflation that ultimately shoots interest rates through the ceiling. Pear of Inflation discourages investors from buying bonds; it encourages borrowers to seek credit. Thus, the demand for money rises and the supply subsides. Interest rates go up. Consequently, removal of the 4-1/4 percent ceiling on new issues of long-term Treasury bonds, by permitting the Treasury to manage the debt in the least inflationary way, would actually work for lower — not higher — interest rates. We are convinced that if the whole borrowing area was open to us -- short-term, intermediate, and long-term — we could be borrowing some in each of these areas, spreading our indebtedness, taking adyantage of the funds available in these areas and doing a better job and, it may well be, at less cost than we will be required to pay because of the ceiling which the Congress has kept in effect. These are technical matters; but they are matters of the greatest importance to the American people. In a special message to Congress on August 25, the President pointed to the debt management proposals as the most important issue to come before the Congress during the session just ended. We are now in the midst of one of the greatest monetary debates since the campaign days of Williams Jennings Bryan. In 1896 the people of this country voted for sound money and a stable currency. Once again, apparently, the people must be acquainted with the facts about money. They must choose between artifically low interest rates 0O0 created by soft money, and the inflation that results, or the flexible growth interest Isrates to bethat healthy, are essential long-lasting, if inflation and rewarding. Is to be avoided and 24u IMMEDIATE RELEASE Thursday, September 17, 1959* A-633 Secretary of the Treasury Robert B. Anderson has named Mr. Chapsnan C. Flensing as a Deputy Comptroller of the Currency. The position -was created by an Act of Congress approved by the President on September 9, 1959 • Formerly there had been three Deputy Controllers. Under the direction of the Comptroller of the Currency, each Deputy is responsible for administering the national banking laws, which includes the supervision of all national banks, in one or more Federal Reserve Districts. Kr. Fleming has been with the Office of the Comptroller of the Currency since 1929, and prior to his appointment as a Deputy Comptroller he had been Assistant Chief National Bank Examiner in Washington. From 1945 to 1954 Mr* Fleming, in the capacity of a National Bank Examiner, assisted the District Chief National Bank Examiner in the Cleveland Office and performed special assignments in the Fourth Federal Reserve District. Born in Pittsburgh, Pennsylvania, in 1905, Mr. Fleming attended school in Lakewood, Ohio and Lehigh University at Bethlehem, Pennsylvania. oOo IMMEDIATE RELEASE Thursday. September 17, 1959• A-633 Secretary of the Treasury Robert B. Anderson has named Mr. Chapman C. Fleming as a Deputy Comptroller of the Currency. The position was created by an Act of Congress approved by the President on September 9, 1959. Formerly there had been three Deputy Comptrollers. Under the direction of the Comptroller of the Currency, each Deputy is responsible for administering the national banking laws, which includes the supervision of all national banks, in one or more Federal Reserve Districts. Mr. Fleming has been with the Office of the Comptroller of the Currency since 1929, and prior to his appointment as a Deputy Comptroller he had been Assistant Chief National Bank Examiner in Washington. From 1945 to 1954 Mr. Fleming, in the capacity of a National Bank Examiner, assisted'the District Chief National Bank Examiner in the Cleveland Office and performed special assignments in the Fourth Federal Reserve District. Born in Pittsburgh, Pennsylvania, in 1905, Mr. Fleming attended school in Lakewood, Ohio and Lehigh University at Bethlehem, Pennsylvania. 0O0 -3- 2 4 2 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 subj to estate, inheritance, gift or other excise taxes, whether Federal or State, bu are exempt from all ^taxation now or hereafter imposed on the principal or inte 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 int 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 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, wh on original issue or on subsequent purchase, and the amount actually received e 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. 243 - 2?!>;*»*»:*•.*.«•_»;«»>:i 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 Breeches on application therefor. Others than banking institutions will not be permitted to submit tenders ex- cept for their cwn account. Tenders will be received without deposit from incorp rated banks and trust companies and from responsible and recognized dealers in i ment securities. Tenders from others must be accompanied by payment of 2 percent the face amount of Treasury bills applied for, unless the tenders are accompanie an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Re- serve Banks and Branches, following which public announcement will be made by th Treasury Department of the amount and price range of accepted bids. Those submit ting tenders will be advised of the acceptance or rejection thereof. The Secreta of the Treasury expressly reserves the right to accept or reject any or all tend in whole or in part, and his action in any such respect shall be final. Subject these reservations, noncompetitive tenders for $ 200,000 or less for the additio bills dated June 25, 1959 , ( 91 days remaining until maturity date on December 24, 1959 ) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the r tive issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 24. 1959 > in cash or other immediately available funds or in a like face amount of Treasury bills mat ing September 24, 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 44 MZmxXNI8l____m» TREASURY DEPARTMECT Washington RELEASE A. M. NEWSPAPERS, Thursday. September 17, 19.scT _—- / 3 ^ 7 • The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts, f cash and in exchange for Treasury bills maturing September 24. 1959 , -* in the amou jjp* of $ 1,600.211.000 , as follows: 91 -day bills (to maturity date) to be issued sepfremter ?Af 1959 , ^&ix xfej or in the amount of $ \ 20p.QQQ.000 > thereabouts, representing an additional amount of bills dated June 25, 1959 , and to mature December 24, 1959 , originally issued in the amount of $ 500,242,000 , the additional and original bills to be freely interchangeable. 182 -day bills, for $ 400,000,000 , or thereabouts, to be dated September 24, 1959, and to mature March 24, 1960 . 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 wj^ll be issued in bearer form only, and denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat value). Tenders will be received at Federal Reserve Banks and Branches up to the closing Daylight Saving hour, one-thirty o'clock p.m., Eastern /&££K88£?C time, Monday, September 21, 1959 Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders t price offered must be expressed on the basis of 100, with not more than three TREASURY DEPARTMENT • L m _ - _ _ _ a _ j y , . . -•-___^v__lj,..F_w?l.pL,,..jW,.,J.,,,,.,w,JW ,.„„„., , T .j, .ui • n m w u M M U M WASHINGTON. D.C. RELEASE A. M. NEWSPAPERS, Thursday, September IT, 1959. A-634 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 September 24,1959,in the amount of $1,600,211,000, as follows: 9_rday bills (to maturity date) to be issued September 24, 1959, in the amount of $1,200,000,000, or thereabouts, representing an additional amount of bills dated June 25, 1959, and to mature December 24,1959, originally issued in the amount of $500,242,000, the additional and original bills to be freely interchangeable. 182-day bills, for $400,000,000, or thereabouts, to be dated September 24,1959yand to mature March 24, i960. 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 lipjto the closing hour, one-thirty o'clock p.m., Eastern Daylight Saving;'::", time, Monday, September 21,1959 Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and In the case of competitive tenders the price offered must be expressed on the basis of 100, *with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded In the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated June 25, 1959, (91 days remaining until maturity date on December 24,1959) and noncompetitive tenders for $ 100,000 or less for the 182 -day bills without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders In accordance with the bids must be made or completed at the Federal Reserve Bank on September 24, 1959, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 24,1959. 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 hereunde: need Include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent*purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. 0O0 Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their Issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. y RELEASE A. V. ITCWSPAFE Tuesday, September 22, 1959. The Treasury Bparteent announced last evening that the tenders for two series of Treasury bills, one series to be an additional issue of the bills dated Jane £S,0>959, and the other series to be dated September ?lt, 1959, which were offered on September 1 were opened at the Federal Reserve Sanies on September 21. Tenders ware intdttmlefiisec •. U,200,000,OOU, or thereabouts, ©f 91-day bills and for $400,JUO,000, or, thereabouts, i 182-day bills, rhe details of tne two series are as followst *AK}I iJc ACCEPTS' COM-ETirifE BIBS: rice High Low Averare bills mmxtweixm Maarchr_tft_o>i6o : ^-'i ..-T (in three :•' : 11 Approx* u&pi&T. Price* * Ahcaxal rotate f ]«da;y Treasury bills maturing December 2k9 1959 99*00? a/ 98.976 ~ 99*000 Approx. Kquiv. Annual Ttat© 3.92oi 4.051JS 3.956* V7.*» 97.578 97.591 tesw 11*191% a/ Excepting on© tender of $600,000 7 percent of the amount of 91-day bills Die ror at* %M low prxce was accep^eo 7v percent;"of .-the aawmnt ef i§2~day bills b M *for at tee low price was accepted or r > , Dii_.i, toes net nave --1-. .:i » _ Oi other disposition as such, TOTAL-Tl^i^f?^ .-APPLIED FOR a^lB ACCI1 subject to Tb.. bii 2.3 ar i A ccepted c i* Acce Applied For restrict ror ~**ntmm%-i*£*>im9im<>-9inmm99ww iwiniwiii ro»i.«wwmn«__rrpi' Hostor yew York Philadelphia Cleveland licisiiond Atlanta Chicago St. Louis Kansas City r.allas San Francisco I 27,339,000 1,342,152,000 32,io3,0uo uO,004,000 l6,li|l,Q00 27,486,000 196,754,000 27,031,000 11,399,000 33,578,000 23,181,000 66^r3>;|0^x:? 17,339,000 766,152,000 17,153,000 1*0,0(34,000 l6,l4l,OUO 27, 000 ,?5ii,ooO 25,631,000 1 11,3/9,000 i-32,:>76,u0o a 81,181,000 57,429,000 t s t t * t: 7,66d,000 5?G,1>1,000 > :/,777,QOO 26*553,(X» 2,9?a;ooo 6,968,000 »5,25l^O00* 4,7HV«30 >6,5£J*000 2,973,000 x 5,124,000 ^59$90QOd 61,916,000 » 4,368*000 ed •r. 'i*,360,uOO ^39£*O00 • 3,392,000 1 8,6?i>,OOG te «v8,175,000 t 4,30ft, 000 t4,308,000 48,726.000 49,4l6,OuO MMWwJbl«HIM*MMI*W» ft L"» L^ r\^;e ved e_ - a *• ill"* m * U,?uof>L7,00Ol^ _ $70ia,626,000 ar ^tqOu,0l5,OGG<*/ i i»tiii ^i in TOTALS l,81Ui,257,OU> MmAmmmmmmmmmAmjmmmmmtmm ^/ Includes 1291,836,000 noncompetitive tenders accepted at the average price of 99.00( c/ Includes $57,3l8,OuO noneo«pefcitlve tenders-accepted at^Ui^ airera_aeai_riei-of 97.591 ^T^K o TREASURY DEPARTMENT WASHINGTON, D.C. RELEASE A. M. NEWSPAPERS, Tuesday, September 22, 1959. A-635 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 June 25, 1959, and the other series to be dated September 24, 1959, which were offered on September 17, were opened at the Federal Reserve Banks on September 21. 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 followst RANGE OF ACCEPTED 91-day Treasury bills 182-day Treasury bills COMPETITIVE BIDS, maturing December 24, 1959 maturing March 24, I960 Price High Low Average 99.007 a/ 98*976 99.000 Approx. Equiv. Annual Rate 3.928£ 4.05l# 3.958* Price 97*609 97.578 97.591 Approx. Equiv. Annual Rate k. 7*9% k.791% k.7(A% i t/ Excepting one tender of $600,000 percent of the amount of 91-day bills bid for at the low price was accepted 70 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS i District Applied For Accepted Applied For Accepted Boston Mew York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco TOTALS 27,339,000 1,31*2,152,000 32,1«53,000 1*0,00l*,000 16,lljl,000 27,1(86,000 196,75l4,ooo 27,031,000 11,399,000 33,578,000 23,181,000 66.739,000 $1,81»1*,257,000 17,339,000 766,152,000 17,1*53,000 l*0,00l*,000 16,11*1,000 27,1*86,000 167,751*,000 25,631,000 11,399,000 32,578,000 21,181,000 57,lt29,000 #l,2O0,51*7,OO0b/ # 7,868,000 520,151,000 9,777,000 26,553,000 2,978,000 5,12l*,000 61,916,000 1*, 368,000 3,392,000 8,775,000 1*, 308, 000 1*9,1*16,000 $70l*,626,000 $ 6,968,000 255,251,000 i*,777,000 26,553,000 2,978,000 l*,l*2l»,000 35,595,000 1*,368,000 3,392,000 8,675,000 k,308,000 1*2,726,000 $l»00,0l5,000c/ y Includes $291,836,000 noncompetitive tenders accepted at the average price of 99.000 y Includes $57,318,000 noncompetitive tenders accepted at the average price of 97*591 - 11* - c46 The choice before us is a momentous one. At stake for all of our people are the job opportunities, rising incomes, and the security of savings set aside for later years. At stake also is J^Atif the siaxui'Ufr of our country and of the free world, for in the last analysis this too depends upon the economic strength of America. _2T* /£ my + kt A»\eirtC3h people •r T - — - B abiaing faith that-we will make the right choice. A A -0-0-0-0-0-0-0- 24^ - 13 legislation which will permit us to raise the interest rate on Savings Bonds from 3^ to 3 3/4 percent and to adjust upward the rate on outstanding £ and H Bonds. This new rate will provide purchasers of Savings Bonds with a fair and equitable return on their investment. Although clearly necessary, the action on Savings Bonds alone was inadequate. The inflationary debt management policies which we have no choice but to follow can undo much of the good that is being achieved through a balanced budget and sound monetary policies. It is to be hoped that the next session of Congress will place further action on our debt management proposals at the top of the list of vitally needed legislation. Our Nation today is confronted with a critical choice. / We can mriflTfl frhr f^rArmA -in fnimn fl^* sound Government financial policies that A will foster growth A not of the temporary, unsustainable type, but long4asting and rewarding. /Or we can choose the temporary expedient of excessive Government spending and money creation during a period of Sock p^ach^t^ tan Kte4i\y strong business activity. This oan onl^lead to inflation, which will ultimately dry up the flow of genuine savings and lead to recession — the number one enemy of growth. As has been proved in country after country, the road of currency depreciation own only recuAt An katfdolitp s S<LI~*OUS Sbd kn<f-/a$f~ir)q c/t f-f) c u I h -es^ and CH'gappululmeirt. ' / ?~;, <*m. - 12 - This ij bemuse U m Trwmm'y m luutod OUfttt"1 M e inai'luat ^Por "tonpjitftrm monoy* A law passed 41 years ago, in connection with a S specific financing operation of World War I, established an interest rate ceiling of 4-^- percent on Treasury bonds running five years or more to maturity. When long-term rft*its are moving in a range above 4-J percent, as they are now, the Treasury has no choice except to borrow on short-term securities. The result is that we havo te. by-pass genuine savings — the only source of noninflationary borrowing — in favor of short-term issues which are only a few steps away from being money. Moreover, such securities bounce back and require refinancing at short intervals; this makes debt management even more difficult. More than $73 billion of marketable Treasury securities come due within the next twelve months; these must be refinanced. Such frequent Treasury trips to the money market, in relatively large amounts, also complicate the task of the Federal Reserve in administering a sound credit policy. Despite the fact that President Eisenhower, in a special message to Congress, referred to our debt management proposals which were made in June as the most important issue to come before the Congress in the session just ended, no action was taken with respect to removing the outmoded 4^ percent rate on new issues of marketable Treasury bonds. Shortly before adjournment, Congress did enact - 11 - "Si Actions to limit inflationary pressures during this period of strong business activity will, in addition to protecting the purchasing power of the dollar, foster sustained growth in still another important way. Restraint and self-discipline today will help assure that the current healthy advance in business activity does not rise to an unsustainable rate and then fall back. This is the best possible assurance that our economic resources will remain in continuous and efficient use. The severity of a recession reflects primarily the build-up of unsustainable expansion in the preceding period of prosperity. By exercising restraint and moderation during periods of prosperous business, we can keep booms from getting out of hand. This will minimize the impact of later adjustments Our <a«Ni*M#e prospects today are bright. We have high hopes for a balanced budget in this fiscal year. A surplus for debt retirement would be preferable, but even a mere balance will be highly beneficial in promoting sustainable growth. Federal Reserve monetary policies, flexibly administered in keeping with the developing economic situation, will also be beneficial. Unfortunately, however, the Treasury does not today have sufficient authority to manage our $290 billion public debt in a manner that will be most conducive to sustainable economic rai. TAts ts growth 0 U> -6<zc6Us& He T-tesj'*-/ ts AckcJ ? rV \<S Ky /__ - 10 out of changes in the economy in recent years; further study may be necessary before they can be identified and before appropriate policies to control them can be devised. But there can be no doubt as to the role of general budget, monetary, and debt management policies. Even though the steel strike has caused temporary cutbacks in parts of the economy, the fact remains that general business activity is strong, employment and incomes are at high levels, and consumer and business optimism is growing. These conditions call for self-discipline and restraint. This requires Federal income in excess of spending, to provide a surplus for debt retirement; monetary policies to prevent excessive credit expansion from generating inflationary pressures; and sound and flexible management of the public debt. Some observers point to the high degree of price stability of the past year as proof that we are not now confronted with monetary inflation. This general price stability should be carefully evaluated. A rise in the cost of many goods and services has been offset by declining prices for farm products and food. This is, at best, a precarious balance. Moreover, the important point is that effective control of inflation requires actions to restrain inflationary pressures as they develop. To wait until the pressures have permeated the economy, and have finally emerged in the form of price increases, is "to close the barn door after the horse is already part way out." s** 1 9***m - 9 and in which the Treasury is cooperating, will lead to significant and beneficial results. Moreover, the Government can and should do much to eliminate waste, not only in its own operations, but in Government sponsored or regulated activities. All of these are important methods of aiding growth in a free choice economy. I am convinced, however, that one of the most significant Governmental contributionSto economic progress involves use of fiscal, monetary, and debt management powers to promote stability in the value of the dollar and relatively complete and continuous use of our economic resources. Confidence in the integrity of the dollar is basic to a high sos+awtbfe, rate of^growth. As I noted earlier, a high rate of capital formation in turn depends upon saving. As your industry is well aware, incentives to save in traditional forms — in savings accounts, bonds, and through purchasing insurance —Jtiave been somewhat impaired by a disturbing conviction on the part of some people that inflation is inevitable. This is a mistaken conviction. But if we should ever allow a lack of confidence to develop in the future value of the dollar, the desire to save in traditional forms will be weakened. Growth will be impeded • Full confidence in the future value of the dollar can be maintained only^bya broad-cdyfeaejiaategi all of the forces and practices that promote inflation. Some of these forces and practices may have grown - 8family is strongest in an atmosphere of freedom. Consequently, the first task of Government in fostering growth is to safeguard and strengthen freedom. The proper role of Government is to provide an atmosphere conducive to growth, not to attempt /bo forcefr^owth ~~~ "~ through direct intervention in markets or through an improvident enlargement of the public sector of the economy. Governmental efforts to promote growth that rely on, or subsequently lead to, excessive intervention in and direction of market forces car^sin the long rurv> only impede the kind of growth. Government can also promote rapid, healthy growth by fostering competition in the economy. Competition sharpens interest in reducing costs and in developing more efficient methods of production. It places a premium on skills in business management. It stimulates business investment in new plant and equipment, both as a means of economizing in the production process by use of more efficient machinery, and by enlarging capacity in order to capture a larger share of the market. Healthy, vigorous, and widespread competition, in short, is the primary stimulant to efficiency in use of our economic resources, both human and material, through technological advance and by stamping out waste and inefficiency. There are other ways in which the Government can promote healthy and sustainable economic growth. I am hopeful that a study of the tax system, recently undertaken by the House Ways and Means Committee - 7A third important requisite for a high and sustained rate of growth is efficient and continuous use of our economic resources. Inefficiencies in use of resources can carry a heavy toll in terms of lost output. Moreover, idle manpower and equipment — a characteristic of the adjustment periods that result from efforts to grow too fast — represent production that is irretrievably lost. Recession is the number one enemy of sustained growth. ^^ To SUm vpj In ohorU. economic growth in a free choice, competitive economy tends to vary directly with the pace of technological advance, the rate of saving and capital formation, and the efficient and continuous use of our economic resources. An effective Government program to shov U foster growth mte^ operate largely through these basic determinants. The moving forces which promote growth in a free economy are basically the same as those that account for economic progress on the part of the individual. Tine individual^ desire for a higher and more secure standard of living for himself and for his family is the basic stimulus; this is the prime mover. To this end he studies, plans, works, saves and invests. He searches out new ways of doing things, developing new techniques and processes. Where such instincts as these are strong, the forces promoting growth in society as a whole are strong. Where they are weak, the impetus for growth is also weak. We are dedicated to the proposition that the desire of the individual to improve the standard of living for himself and for his - 6 - ?£_• contributions of the inventor, the innovator, and the engineer. Manfs ingenuity in tackling and solving his problems lies at the heart of the growth process. Technological advance alone, however, cannot assure a high rate of growth. The best ideas and the best techniques are of little benefit if the means are not available to translate them into , , operating processes. This requires capital*- Mfaieh. can only grow ) A out of saving and productive investment. The cruciality of a high rate of saving to the growth process leads to an important but, apparently, little understood principle of economics. From the standpoint of an individual, sauing-^s means •}*$+ mvio^ less cortsvnf+t&H- ^ ilnililni n i Pi rim i i in imiijjf n HJ_ The more he consumes, the less he saves; the more he saves, the less he consumes. Consequently, if we insist on a dramatic and unprecedented rate of economic growth in the future, we must frankly admit to ourselves that this requires a higher rate of saving at the present time. This principle has important implications today. There appear to be some observers who believe that, on top of providing adequately for national defense and devoting a considerably larger volume of current output to public projects, we can achieve a dramatic rate of growth in the private sector. Perhaps we can; but it seems clear to me that this can occur only if we are willing to increase our saving. - 5hi^iways, and other public facilities? How much of the increase in output was composed of goods that people did not want — goods which ended up in Government warehouses, being given away, destroyed, or sold for less than true value? What portion of total output was devoted to enlargement and modernization of business plant and equipment and to research? How much of our effort had to be devoted merely to maintenance of plant and equipment, as opposed to net new additions? There are other important questions. How were the fruits of the growth in output distributed among various groups in the economy? Was the growth characterized by distortions and imbalances that would hamper future growth? To what extent was temporary growth stimulated by actions that impinged on the free choice of individuals and institutions? These questions indicate that economic growth, in terms of a specific figure, is not an end in itself. It must be growth of the right kind. It must be sustainable. It must have a reasonable distribution. In an economy so highly dynamic and complex as ours, with its primary emphasis on the freedom of individual decisions, the factors influencing the rate of growth are necessarily manifold and complex. The pace of technological advance is one of the more important factors. No one can study the economic history of this or of any other advanced industrial nation without being impressed by the vital ^ r— .-\ ^ *_, __ -4- maximum success in this endeavor only if we understand the nature of growth and the forces that influence it in our type of econonjy. Economic growth is usually thought of in terms of the annual increase in real gross national product — that is, growth in the dollar value of total output, adjusted for changes in price levels. For some purposes this is a good measure of economic growth; for others it is not. This particular measure of growth is deficient, in the first place, because it tells us nothing about the nature of the growth that takes place, ©lis is simply another way of saying that promotion of growth for its own sake UILIIJI HI. 1L result in an undesirable type of growth. An increase in output, to be meaningful, must consist of the useful goods and services that people want and are able to buy. Secondly, a broad, aggregate measure of growth provides only a partial clue as to whether the growth that takes place is sustainable. If an upsurge in output prodeeds at an unsustainable pace, and if pressures on prices are allowed to \muHIULIILLIL LUIQul,m we run the risk of falling back to a lower level of output. We must look behind the broad measures of growth. We must ask searching questions about its characteristics. When growth has taken place, how much did consumption expand relative to Government use of goods and services? How much of the Government portion consisted of military hardware as opposed to schools, - 3 - ^^O J ^> w -._; this view, Government should utilize all of its capabilities and powers to guarantee tOkmb ^ewte^qpsaaaaaib^te a record-breaking rate* / ^ * _-,©__ __>JI__£S '/ elhtM Cfe\/^l6pr7)t^T5 J M year in and year out, recjotriro *€?*:> * y ' ' * r OUk comp&hiiwe, economy* This view is wholly inconsistent with our basic ideals. The strength of our economy stems from reliance on the integrity, wisdom, .> and initiative of the individuals^Just as our political sys^ternisl^ov'em^ one of free choice, in that each individual is free to select the party and candidate of his choosing, so is our economic system one of free choice. The consumer, by casting his dollar votes in the market place, selects the goods to be produced, their quantities and characteristics. Growth cannot be forced in a free choice economy. The essence of economic freedom is the right to dispose of our incomes as we see fit — to consume or to save, to invest or not to invest. These decisions, arrived at freely and independently by millions of people ^ and institutions, lha¥#~an import aWfe ofif'QQl> on the growth process ./if we are to maintain our freedoms, the Government cannot be the predominant factor in our Nation's economic advancement. Its role must be to foster and facilitate growth — not to force it.-*, sf'~~ J g\ /Economic growth at a forood anfoartificial ratefcan only cause f^7 the loss of some of our most cherished economic freedoms — or inflation — or both. While Government cannot force growth in a free economy, it can do much to promote sound, sustainable economic progress. We can realize k ^w&^x\ * y* :t ^ %-< ~J - 2 - Sound money, and the maintenance of the purchasing power of the dollar that it implies, is properly a goal in itself. The millions of Americans who hold savings in the form of life insurance contracts, Government savings bonds, savings accounts in financial institutions, social security, and in other forms are entitled to the assurance that these invested dollars will not shrink in value because of inflation. But sound money is more than an end in itself; it is absolutely essential if our other important economic objectives — nnfl mnwy noneconomic objectives foch esou* /jziioH&l s*,o»un+y an wi^r^ — are to be realized as fully as is possible. We are dedicated to the attainment of three important economic goals — Continuity of job opportunities for those able, willing, and seeking to work; A sustainable rate of economic growth; Reasonable stability of price levels. Each of these objectives is important. /u*A*i£^a'v Each isArelated to the A others. The desirability of promoting continuity of job opportunities and stability in the purchasing power of the dollar has been emphasized for years. Only recently has continuing economic growth been recognized as a major economic objective. Some observers appear to believe that economic growth at a dramatic and unprecedented rate is of such overriding importance that it must be achieved at any cost. According to \ \ REMARKS BY SECRETARY ANDERSON AT THE ANNUAL CONVENTION OF THE NATIONAL ASSOCIATION OF LIFE UNDERWRITERS ON THE AMERICAN COLLEGE HOUR, BELLEVUE-STRATFORD HOTEL, PHILADELPHIA, PENNSYLVANIA, 11:00 A.M., SEPTEMBER 23, 1959 I welcome this opportunity to appear before a group that sells one of the most valuable products available in this country today security for the American family. Life insurance may come in a variety of packages, but all contracts have one thing in common: the policyholder exchanges current income for dollars in the future. The attractiveness of your product is tied directly to the future value ef the dollar. Inflation is not just a scare-word to you -- you have seen its effects over the past twenty years, as the purchasing power of the dollar has shrunk to less than half its former value. And you know that if the future value of the dollar is not protected, you and your industry will suffer. No group has a greater direct interest in safeguarding and strengthening our currency. The vigorous and effective campaign conducted by your Industry during recent months in support of sound Government financial policies, which are essential to a stable dollar, represents a vital contribution to the public Interest. These efforts grow out of the firm conviction% which I share with you, that future progress in this Nation and in your industry must be based on the solid f oundation of a reasonably stable currency. TREASURY DEPARTMENT Washington ^ ^ __ REMARKS BY SECRETARY OP THE TREASURY ROBERT B ANDERSON AT THE ANNUAL CONVENTION OP THE NATIONAL ASSOCIATION OP LIFE UNDERWRITERS ON THE AMERICAN COLLEGE HOUR, BELLEVUE-STRATFORD HOTEL, PHILADELPHIA, PENNSYLVANIA, 11:00 A.M . EDT, SEPTEMBER 23, 1959 ,1 welcome this opportunity to appear before a group that sells one of the most valuable products available in this country today — security for the American family. Life insurance,may come in a variety of packages, but all contracts have one thing in common: the policyholder exchanges current income for dollars in the future. The attractiveness of your product is tied directly to the future value of the dollar. Inflation is not just a scare-word to you — you have seen its effects over the past twenty years, as the purchasing power of the dollar has shrunk to less than half its former value. And you know, that if the future value of the dollar is not protected, you and your industry will suffer. No group has a greater direct interest in safeguarding and strengthening our currency. The vigorous and effective campaign conducted by your industry during recent months in support of sound Government financial policies, which are essential to a stable dollar, represents a vital contribution to the public interest. These efforts grow out of the firm conviction, which I share with you, that future progress in this Nation and in your industry must be based on the solid foundation of a reasonably stable currency. Sound money, and the maintenance of the purchasing power of the dollar that it implies, is properly a goal in itself. The millions of Americans who hold savings in the form of life insurance contracts, Government savings bonds, savings accounts in financial institutions, social security, and in other forms are entitled to the assurance that these invested dollars will not shrink in value because of inflation. But sound money is more than an end in itself; it Is absolutely essential if our other important economic objectives — as well as noneconomic objectives such as our national security — are to be realized as fully as is possible. We are dedicated to the attainment of three important economic goals — Continuity of job opportunities for those able, willing, and seeking to work; A sustainable rate of economic growth; Reasonable stability of price levels. A-636 — P « 3 C '•> w ^ ^i^E^C\- °f these objectives is important. Each is fundamentally related to the others. The desirability of promoting continuity of job opportunities ana stability in the purchasing power of the dollar has been emphasized tor years. Only recently has continuing economic growth been recognized as a major economic objective. Some observers appear to believe that economic growth at a dramatic and unprecedented rate is of such overriding importance that it must be achieved at any cost. According to this view, Government should utilize all of itlTcapabilities and powers to guarantee a record-breaking rate of growth, year in and year out, regardless of other developments in our competitive economy. This view is wholly inconsistent with our basic ideals. The strength of our economy stems from reliance on the integrity, wisdom, and initiative of the individual -- not the directives of an allwise government. Just as our political system is on£ of free choice, in that each individual is free to select the party and candidate of his choosing, so is our economic system one of free choice. The * consumer, by casting his dollar votes in the market place, selects the goods to be produced, their quantities and characteristics. Growth cannot be forced in a free choice economy. The essence of economic freedom is the right to dispose of our incomes as we see fit -- to consume or to save, to invest or not to invest. These decisions, arrived at freely and independently by millions of people and institutions, are a central and highly important factor in the growth process. If we are to maintain our freedoms, the Government cannot be the predominant factor in our Nationfs economic advancement. Its role must be to foster and facilitate growth — not to force it. Economic growth at an artificial rate, forced through unsound practices, can only cause the loss of some of our most cherished economic freedoms -or inflation — or both. While Government cannot force growth in a free economy, it can do much to promote sound, sustainable economic progress. We can realize maximum success in this endeavor only if we understand the nature of growth and the forces that influence it in our type of economy. Economic growth is usually thought of in terms of the annual increase In real gross national product -- that is, growth in the dollar value of total output, adjusted for changes in price levels. For some purposes this is a good measure of economic growth; for others it is not. This particular measure of growth is deficient, In the first place, because it tells us nothing about the nature of the growth that takes place. This Is simply another way of saying that promotion of - 3 growth for its own sake could result in an unwanted type of growth. An increase in output, .to be meaningful, must consist of the useful goods and services that people want and are able to buy. Secondly, a broad, aggregate measure of growth provides only a partial clue as to whether the growth that takes place is sustainable. If an upsurge in output proceeds at an unsustainable pace, and if strong pressures on prices are allowed to build up, we run the risk of falling back to a lower level of output. We must look behind the broad measures of growth. We must ask' searching questions about its characteristics. When growth has taken place, how much did consumption expand relative to Government use of goods etnd services? How much of the Government portion consisted of military hardware as opposed to schools, highways, and other public facilities? How much of the increase in output was composed of goods that people did not want — goods which ended up in Government warehouses, being given away, destroyed, or sold for less than true value? What portion of total output was devoted to enlargement and modernization of business plant and equipment and to research? How much of our effort had to be devoted merely to maintenance of plant and equipment, as opposed to net new additions? There are other important questions. How were the fruits of the growth in output distributed among various groups in the economy? Was the growth characterized by distortions and imbalances that would hamper future growth? To what extent was temporary growth stimulated by actions that impinged on the free choice of individuals and institutions? These questions indicate that economic growth, in terms of a specific figure, is not an end in itself. It must be growth of the right kind. It must be sustainable. It must have a reasonable distribution. In an economy so highly dynamic and complex as ours, with its primary emphasis on the freedom of individual decisions, the factors influencing the rate of growth are necessarily manifold and complex. The pace of technological advance is one of the more important factors. No one can study the economic history of this or of any other advanced industrial nation without being impressed by the vital contributions of the inventor, the innovator, and the engineer. Man's ingenuity in tackling and solving his problems lies at the heart of the growth process. Technological advance alone, however, cannot assure a high rate of growth. The best ideas and the best techniques are of little benefit Cor - 4 - ^°- if the means are not available to translate them into operating processes. This requires capital; and true capital can only grow out of saving and productive investment. The cruciality of a high rate of saving to the growth process leads to an important but, apparently, little understood principle of economics. Prom the standpoint of an individual, every act of saving means that much less consumption. The more he consumes, the less he saves; the more he saves, the less he consumes. Consequently, if we insist on a dramatic and unprecedented rate of economic growth in the future, we must frankly admit to ourselves that this requires a higher rate of saving at the present time. This principle has important implications today. There appear to be some observers who believe that, on top of providing adequately for national defense and devoting a considerably larger volume of current output to public projects, we can achieve a dramatic rate of growth in the private sector. Perhaps we can; but it seems clear to me that this can occur only if we are willing to increase our saving. A third Important requisite for a high and sustained rate of growth is efficient and continuous use of our economic resources. Inefficiencies in use of resources can carry a heavy toll in terms of lost output. Moreover, idle manpower and equipment — a characteristic of the adjustment periods that result from efforts to grow too fast — represent production that is irretrievably lost. Recession is the number one enemy of sustained growth. To sum up, economic growth in a free choice, competitive economy tends to vary directly with the pace of technological advance, the rate of saving and capital formation, and the efficient and continuous use of our economic resources. An effective Government program to foster growth should operate largely through these basic determinants. The moving forces which promote growth in a free economy are basically the same as those that account for economic progress on the part of the individual. The individual's desire for a higher and more secure standard of living for himself and for his family is the basic stimulus; this is the prime mover. To this end he studies, plans, works, saves and invests. He searches out new ways of doing things, developing new techniques and processes. Where such instincts as these are strong, the forces promoting growth in society as a whole are strong. Where they are weak, the impetus for growth is also weak. We are dedicated to the proposition that the desire of the individual to improve the standard of living for himself and for his family is strongest in an atmosphere of freedom. Consequently, the first task of Government in fostering growth is to safeguard and strengthen freedom. The proper role of Government is to provide an atmosphere conducive to growth, not to force unsound and unsustainable 3s$ - 5 growth through direct intervention in markets or through an improvident enlargement of the public sector of the economy. Governmental efforts to promote growth that rely on, or subsequently lead to, excessive intervention in and direction of market forces can in the long run only impede the kind of growth that is desirable and sustainable. Government can also promote rapid, healthy growth by fostering competition in the economy. Competition sharpens interest in reducing costs and in developing more efficient methods of production. It places a premium on skills in business management. It stimulates business investment In new plant and equipment, both as a means of economizing in the production process by use of more efficient machinery, and by enlarging capacity in order to capture a larger share of the market. Healthy, vigorous, and widespread competition, in short, is the primary stimulant to efficiency in use of our economi< resources, both human and material, through technological advance and by stamping out waste and inefficiency. There are other ways in which the Government can promote healthy and sustainable economic growth. I am hopeful that a study of the tax system, recently undertaken by the House Ways and Means Committee and in which the Treasury is cooperating, will lead to significant and beneficial - results. Moreover, the Government can and should do much to eliminate waste, not only in its own operations, but in Government supported or regulated activities. All of these are important methods of aiding growth in a free choice economy. I am convinced, however, that one of the most significant Governmental contributions to economic progress involves use of fiscal, monetary, and debt management powers to promote stability in the value of the dollar and relatively complete and continuous use of our economic resources. Confidence in the integrity of the dollar is basic to a high rate of sustainable growth. As I noted earlier, a high rate of capital formation in turn depends upon saving. As your industry is well aware, incentives to save in traditional forms — in savings accounts, bonds, and through purchasing insurance — may have been somewhat Impaired by a disturbing conviction on the part of some people that Inflation is inevitable. This is a mistaken conviction. But if we should ever allow a lack of confidence to develop in the future value Df the dollar, the desire to save in traditional forms will be weakened. 3rowth will be impeded. Pull confidence in the future value of the dollar can be maintained :>nly if we remain constantly alert to all of the forces and practices that promote inflation. Some of these forces and practices may have grown out of changes in the economy in recent years; further study nay be necessary before they can be Identified and before appropriate )olicies to control them can be devised. But there can be no doubt as to the role of general budget, monetary, and debt management policies. Even though the steel strike nas caused temporary cutbacks in parts of the economy, the fact remains that general business activity is strong, employment and Incomes are at high levels, and consumer and business optimism is growing. These conditions call for self-discipline and restraint. This requires Federal income in excess of spending, to provide a surplus for debt retirement; monetary policies to prevent excessive credit expansion from generating inflationary pressures; and sound and flexible management of the public debt. . Some observers point to the high degree of price stability of the past year as proof that we are not now confronted with monetary inflation. This general price stability should be carefully evaluated. A rise in the cost of many goods and services has been offset by declining prices for farm products and food. This is, at best, a precarious balance. Moreover, the important point is that effective control of inflation requires actions to restrain inflationary pressures as they develop. To wait until the pressures have permeated the economy, and have finally emerged in the form of price increases, is "to close the barn door after the horse is already part way out.11 Actions to limit inflationary pressures during this period of strong business activity will, in addition to protecting the purchasing power of the dollar, foster sustained growth in still another important way. Restraint and self-discipline today will help assure that the current healthy advance in business activity does not rise to an unsustainable rate and then fall back. This is the best possible assurance that our economic resources will remain in continuous and efficient use. The severity of a recession reflects primarily the build-up of unsustainable expansion in the preceding period of prosperity. By exercising restraint and moderation during periods of prosperous business, we can keep booms from getting out of hand. This will minimize the impact of later adjustments. Our prospects today are bright. We have high hopes for a balanced budget in this fiscal year. A surplus for debt retirement would be preferable, but even a mere balance will be highly beneficial in promoting sustainable growth. Federal Reserve monetary policies, flexibly administered in keeping with the developing economic situation, will also be beneficial. Unfortunately, however, the Treasury does not today have sufficient authority to manage our $290 billion public debt in a manner that will be most conducive to sustainable economic growth. This is because the Treasury is locked out of the market for long-term money. A law passed 41 years ago, in connection with a specific financing operation of World War I, establishes an interest rate ceiling of — 1mI QC U \._j KJ \y 4_; percent on Treasury bonds running five years or more to maturity. When long-term yields are moving in a range above 4£ percent, as they are now, the Treasury has no choice except to borrow on shortterm securities. The result is that we must substantially by-pass genuine savings — the only source of non-inflationary borrowing — in favor of short-term issues which are only a few steps away from being money. Moreover, such securities bounce back and require refinancing at short intervals; this makes debt management even more difficult. More than $73 billion of marketable Treasury securities come due within the next twelve months; these must be refinanced. Such frequent Treasury trips to the money market, in relatively large amounts, also complicate the task of the Federal Reserve in administering a sound credit policy. Despite the fact that President Eisenhower, in a special message to Congress, referred to our debt management proposals which were made in June as the most important issue to come before the Congress • in the session just ended, no action was taken with respect to removing the outmoded 4£ percent rate on new issues of marketable Treasury bonds. Shortly before adjournment, Congress did enact legislation which will permit us to raise the interest rate on Savings Bonds from 3^ to 3-3/4 percent and to adjust upward the rate on outstanding E and H Bonds. This new rate will provide purchasers of Savings Bonds with a fair and equitable return on their investment. Although clearly necessary, the action on Savings Bonds alone was inadequate. The inflationary debt management policies which we have no choice but to follow can undo much of the good that is being achieved through a balanced budget and sound monetary policies. It is to be hoped that the next session of Congress will place further action on our debt management proposals at the top of the list of vitally needed legislation. Our Nation today is confronted with a critical choice. We can choose sound Government financial policies that will foster growth — not of the temporary, unsustainable type, but longlasting and rewarding. Or we can choose the temporary expedient of excessive Government soendinK and money creation during a period of strong business activit? Such practices can readily lead to inflation, which will ultimately dry up the flow of genuine savings and lead to recession theiSmbe? one enemy of growth! As has been proved in country after country, the road of currency depreciation leads inevitably to serious'and long-lasting difficulties. .- 8 The choice before us is a momentous one. At stake for all of our people are the job opportunities, rising incomes, and the security of savings set aside for later years. At stake also is the safety of our country and of the free world, for in the last analysis this .too depends upon the economic strength of America. It is my abiding faith that the American people will make the right choice. 0O0 MESSAGE FROM TREASURY SECRETARY ANDERSON TO ALL SAVINGS BONDS WORKERS ^-^,^ ' *>' We cannot stress too often the importance of the U. S. Savings Bonds Program in the management of the Nation's financial affaire. The legislation signed today by the President makes it possible to offer American citizens a more up-to-date and more profitable Savings Bonds Program. A higher return on new E and H Bonds is provided, and the future interest earnings of outstanding E and H Bonds are improved. The following points art important for you to stress in your sales effortst 1. The new earning rate of 3-3/** is applicable to all B and H Savings Bonds bought since June 1 of the year. 2. In practically every instanoe it is to the advantage of those who already hold Savings Bonds to retain them, rather than to redeem them to purchase new Bonds. 3. The purchase of U.S. Savings Bonds is a practical way for every American to help guard against the threat of inflation, thus protecting the buying power of the dollar. The action taken today will help all engaged in Savings Bonds sales, staff members and volunteers alike, to increase your sales of Savings Bonds. Tour record has been splendid despite the difficult period we have been through. I know you will experience deep satlsfact in the future as your effforts produce even greater results. Robert B. Anderson IMMEDIATE RELEASE Tuesday, September 22, 1939 A-637 Following his signing earlier today of legislation recently passed by the Congress, President Eisenhower approved Treasury recommendations for the issuance of United States Savings Bonds which will earn at the rate of 3-3/ty* instead of the previous 3-lA*Attached is a letter from the President to Secretary Andersoi approving the new program, and a summary sheet detailing the new bond offerings directed to all the Federal Reserve Banks and other issuing and paying agents who transact U. S. Savings Bonds business with the public. be distributed. A printed circular will later Also attached are tables showing redemption values and investment yields for Series E and H Bonds Issued beginning June 1, 1959. All new Savings Bonds purchased since June 1, 1959# will earn at the new rate of 3-3/ty*. In addition to the issuance of Series E and H Savings Bonds at interest rates above the previous rate, the new law and subsequent actions by the President and the Treasury raised the earnings after June 1, 1959* of all outstanding E and H Savings i Bonds. A message from Secretary Anderson to all Savings Bonds staff workers and the numerous volunteers throughout the country is also attached. 0O0 TREASURY DEPARTMENT W I W A S H I N G T O N , D.C. IMMEDIATE RELEASE Tuesday, September. 22, 1959 A-637 Following his signing earlier today of legislation recently passed by the Congress, President Eisenhower approved Treasury recommendations for the issuance of United States Savings Bonds which will earn at the rate of 3-3/*$ instead of the previous 3-1/^'. Attached is a letter from the President to Secretary Anderson approving the new program, and a summary sheet detailing the new bond offerings directed to all the Federal Reserve Banks and other issuing and paying agents who transact U. S. Savings Bonds business with the public. be distributed. A printed circular will later Also attached are tables showing redemption values and Investment yields for Series E and H Bonds issued beginning June 1, 1959. All new Savings Bonds purchased since June 1, 1959, will earn at the new rate of 3-3 A$In addition to the issuance of Series E and H Savings Bonds at Interest rates above the previous rate, the new law and subsequent actions by the President and the Treasury raised the earnings after June 1, 1959, of all outstanding E and H Saving^ Bonds. A message from Secretary Anderson to all Savings Bonds staff workers and the numerous volunteers throughout the country is also attached. 0O0 73 THE WHITE HOUSE WASHINGTON September 22, 1959 Dear Mr. Secretary: In accordance with legislation signed into law earlier today, I am returning with my approval your proposal to increase the interest return on all United States Series E and H Savings Bonds. In approving your recommendation, I take this opportunity to reaffirm my enthusiastic support of the Savings Bonds Program. This is one of our country's finest and most worthwhile activities. It contributes to the sound management of the Nation's finances. It gives millions of American families the opportunity to save safely and regularly — while investing in their Nation's future. To my mind there is no better way of saving, no more effective way of strengthening our power for peace, than to own United States Savings Bonds. To buy these bonds is to express faith in America. It helps provide the economic strength in both our Government and in individual families on which our freedom depends. I hope that the making of both old and new Savings Bonds even more attractive will serve as a renewed invitation to every citizen to buy and hold these "Shares in America." Sincerely, Honorable Robert B. Anderson Secretary of the Treasury Enclosure 274 MESSAGE PROM TREASURY SECRETARY ANDERSON TO ALL SAVINGS BONDS WORKERS We cannot stress too often the importance of the U. S. Savings Bonds Program in the management of the Nation's financial affairs. The legislation signed today by the President makes it possible to offer American citizens a more up-to-date and more profitable Savings Bonds Program. A higher return on new E and H Bonds is provided, and the future interest earnings of outstanding E and H Bonds are improved. The following points are important for you to stress in your sales efforts: 1. The new earning rate of 3~3/tyo is applicable to all E and H Savings Bonds bought since June 1 of the year. 2. In practically every instance it is to the advantagevof those who already hold Savings Bonds to retain them, rather than to redeem them to purchase new Bonds. 3. The purchase of U.S. Savings Bonds is a practical way for every American to help guard against the threat of inflation, thus protecting the buying power or the dollar. The action taken today will help all engaged in Savings Bonds sales, staff members and volunteers alike, to increase your sales of Savings Bonds. Your record has been splendid despite the difficult period we have been through. I know you will experience deep satisfaction in the future as your efforts produce even greater results. Robert B. Anderson SUMMARY SHEET A —r J— Improvements in Series E and H Savings Bonds c Effective June ly 195? 1° New Series E bonds with issue dates of June 19 1959 and after ~ earn 3~3fh% compounded semi-annually $ if held to maturity (instead of former 3~lfk%)* The increase from 3«l/l$ to 3~3/h% is accomplished by reducing the term of the bond to 7 years,* 9 months (instead of former 8 years*, 11 months). 2. NOT Series H bonds with issue dates of June 1, 1959 and after ~ earn 3-3/1$ if held to maturity (instead of former 3=1/1$)* The new H bond,, like its predecessor5 is a current~income bond5 issued at par^ redeemable at par (on one month's notice after six months8 holding)^ and maturing at par at the end of its ten-year life. There are also improved redemption values and investment yields if the new E bonds are held for less than the 7-3A years to maturity0 Here are some examples of the new values and yields., When held fors »ion value per $100 bond Yield forr Period Period remaining held to maturity T^TSTilFI ~~17870ir~ ^T^ ~""EOT—~™~ 3 years 82_61| 3.26 k*0$ 5 years 89*60 369 iio03 As before^ interim yields on the new H bonds are approximately the same as the new E B s for equal periods of holding _ Interest checks after the first three will be level providing k% current income after 1-1/2 years of holding* 3» All outstanding E and H bonds purchased prior to June 15 1959 ~~ earn at least l/2/K more than before from now to next maturity. Present bonds earning 3-lA% or 3% for their full current maturity periods will earn if2% more* Those earning 2.9/6 will earn 6fl0% more. There will be lesser improvement in yields if redeemed earlier© The increase will be on a graduated scale, starting with next full interest period beginning June 1$ 1959 or aftero There is no retroactive increase in interest rates for periods prior to June In 1959* iu Extension privileges on E bonds. a) Unmatured bonds. 1© Issued June 1914-9 through April 1957 (which had not reached maturity before June 1$ 1959) on which a 10-year 3% extension had already been promised^ will now earn 3=0/1$ for the entire extension period if held the full 10 years, with lesser yields (beginning at approximately 3=1/256) if redeemed earlier. (The redemption value of any- bond at the beginning of the new extension will be the base upon which interest will accrue during the 10«year extension period.) 2o Issued beginning with May 1957 will have a 10-year extension privile^j. interert rates and other terms and conditions to be determined as thy approach maturity© b) Matured bonds, issued May 19I4I through May 19U9* which are already ir- their extension period and which will begin to reach second maturity in May 1961, have been given a second 10-year extension. (Other terms and conditions including interest rates to be determined as they approach extended maturity*) UNITED STATES SAVINGS BONDS - SERIES E TABLE OF REDEMPTION VALUES AND DIVESTMENT YIELDS FOR BONDS BEARING ISSUE DATES BEGINNING JUNE 1, 1959 Table showing: (1) How "bonds of Series E bearing issue dates beginning June 1, 1959, by denominations, increase in redemption value during successive half-year periods following issue; (2) the approximate investment yield on the purchase price from issue date to the beginning of each half-year period; and (3) the approximate investment yield on the current redemption value from the beginning of each half-year period to maturity. Yields are expressed in terms of rate percent per annum, compounded semiannually. | Maturity Value....... :' $25.00 •: $50.00 : £100.00 : $200.00 : $500.00 : $1,000.00 «: $10,000 7,500 [ Issue Price 750.00 «: ! 18.75 :• 37.50 «: ' 75.00 «: 150.00 : 375.00 j Approximate Investment Yield : (3) On current (2) On purchase ] : redemption valu price from issue : from beginning date to beginning \ (1) Redemption values during each half-year period 1/ Period after issue : > of each half\ of each half-year \ (Values increase on first day of period shown) : date : : year period 1/ \ period 1/ ] : to maturity Percent Percent 3.75 * 0.00 First 1/2 year $18.75 $37.50 $ 75.00 $150.00 $375.00 $ 750.00 $ 7,500 3.89 1.71 1/2 to 1 year 18.91 37.82 75.64 151.28 378.20 756.40 7,564 3.96 2.33 1 to 1-1/2 years 19.19 38.38 76.76 153.52 383.80 767.60 7,676 4.01 2.67 1-1/2 to 2 years 19.51 39.02 78.04 156.08 390.20 780.40 7,804 4.01 3.00 2 to 2-1/2 years 19.90 39.80 79.60 159.20 398.00 796.00 7,960 4.03 3.16 2-1/2 to 3 years 20.28 40.56 81.12 162.24 405.60 811.20 8,112 4.05 3.26 3 to 3-1/2 years..... 20.66 41.32 82.64 165.28 413.20 826.40 8,264 4.06 3.36 3-1/2 to 4 years 21.07 42.14 84.28 168.56 421.40 842.80 8,428 4.06 3.45 4 to 4-1/2 years 21.50 43.00 86.00 172.00 430.00 860.00 8,600 4.04 3.53 4-1/2 to 5 years 21.95. 43.90 87.80 175.60 439.00 878.00 8,780 3.59 4.03 5 to 5-1/2 years 22.40* 44.80 89.60 179.20 448.00 896.00 8,960 4.02 3.64 5-1/2 to 6 years 22.86 45.72 91.44 182.88 457.20 914.40 9,144 4.01 3.67 6 to 6-1/2 years....* 23.32 46.64 93.28 186.56 466.40 932.80 9,328 4.01 3.70 6-1/2 to 7 years 23.79 47.58 95.16 190.32 475.80 951.60 9,516 3.99 3.72 7 to 7-1/2 years 24.27 48.54 97.08 194.16 485.40 970.80 9,708 7-1/2 years to 3.74 4.06 7 years & 9 months... 24.75 49.50 99.00 198.00 495.00 990.00 9,900 MATURITY VALUE Co (7 years and -NJ 9 months from cD 3.75 .... issue date) $25.00 $50.00 $100.00 $200.00 $500.00 $1,000.00 $10,000 * Approximate investment yield for entire period from issuance to maturity. 1/ 3-month period in the case of the 7-1/2 year to 7 year and 9 month period. UNITED STATES SAVINGS BONDS - SERIES H TABLE OF CHECKS ISSUED AND INVESTMENT YIELDS FOR BONDS BEARING ISSUE DATES BEGINNING JUNE 1, 1959 Table showing: (1) Amount of interest checks paid on United States Savings Bonds of Series H bearing issue dat beginning June 1, 1959, by denominations, on each interest payment date following issue; (2) the approximate investment yield on the face value from issue date to each interest payment date * and (3) the approximate investment yield on the face value from each interest payment date to maturity. Yields are expressed in terms of rate percent per annum, compounded semiannually* (Maturity Value Face Value (Redemption Value l/ (Issue Price "" Period of time bond is held after issue date $10,000 $500 $1,000 $5,ooo 10,000 500 1,000 5,000 10,000 500 1,000 5,000 (1) Amount of interest check for each denomination l/2 year 1 year 1 1/2 years 2 years 2 1/2 years 3 years.... 3 1/2 years k years k 1/2 years........ 5 years • •• 5 1/2 years 6 years •.« 6 1/2 years........ 7 years 7 1/2 years 8 years • 8 l/2 years 9 years 9 1/2 years 10 years (maturity) 1/ At all times, except that bond is ; U.oo 7.25 $ 8.00 1U.50 $ Uo.oo 72.50 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10,00 10*00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 16.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 80.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 $ 80.00 12*5.00 160.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 Approxm^e investment xield on Face Value {2) From issue : (3) From each • interest payment date to each interest payment .date to maturity 2/ date Percent Percent 3.88 1.60 2.2. 3.95 2.56 2.91 3.12 3.26 3.30 3.kh 3.k9 3.5U 3.58 3.6l 3.6k 3.66 3.68 3.70 3.71 3.72 3.7U 3.75 U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U.oo U . o o CA_> U.oo --J U.oo '••> U.oo not redeemable during first 6 months. 2/ Approximate investment yield for entire period from issuance to maturity is 3.75 percent per annum. ~70 - 3 - sn_g_[isgggiB. 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 subj to estate, inheritance, gift or other excise taxes, whether Ffederal 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 int 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 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, wh on original issue or on subsequent purchase, and the amount actually received e 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. 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 incorpo- rated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated July 2, 1959 , ( 91 days remaining until maturity date on December 31, 1959 ) and noncompetitive tenders for $100,000 or less for the —— 5^c y?a®? L0 • ^ -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 October 1, 1959 , in cash or x£Q0$C "* other immediately available funds or in a like face amount of Treasury bills maturing October 1, 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 \J \. / V-' MX_aCM_G3_XBL TREASURY DEPARTMENT Washington RELEASE A. M. NEWSPAPERS, Thursday, September 2U, 1959 •_- The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $1,500,000,000 , or thereabouts, for cash and in exchange for Treasury bills maturing October 1_ 1959 > in tlie amount of $1,500,20*1,000 , as follows: 91 -day bills (to maturity date) to be issued October 1, 1959 ^ f v _ in the amount of $1,100,000,000 , _-^. , or thereabouts, represent- xp? ing an additional amount of bills dated July 2, 1959 , m and to mature December 31, 1959 , originally issued in the amount of $U99,965,OQO , the additional and original bills to be freely interchangeable. 182 -day bills, for $1*00,000,000 , or thereabouts, to be dated IBF —PS£— October 1, 1959 , and to mature March 31, I960 . 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 amour 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 (maturft value). Tenders will be received at Federal Reserve Banks and Branches up to the closir two Daylight Saving hour, 3R30$&23O$r o'clock p.m., Eastern/gdEHaftasKl time, Monday, September 28, 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 TREASURY DEPARTMENT . IJIII-UI J..»..t JW1..H.U. • i.. _. 38i iiiruimM— W A S H I N G T O N . D.C. RELEASE A. M. NEWSPAPERS, Thursday, September 24, 1959. A-638 The Treasury Department, by this public notice, invites tenders lor two series of Treasury bills to the aggregate amount of $1,500,000,OQO, or thereabouts, for cash and in exchange for Treasury bills maturing October 1, 1959. in the amount of $1,500,204,000, as follows: 91 -day bills (to maturity date) to be issued October 1, 1959, in the amount of $1,100,000,000, or thereabouts, representing an additional amount of bills dated July 2, 1959, and to mature December 31, 1959.originally issued in the amount of $499,965,000, the additional and original bills to be freely interchangeable. 182 -day bills, for $400,000,000, or thereabouts, to be dated October 1, 1959, and to mature March 31, i960. 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 jtp to the closing hour, two o'clock p.m., Eastern Daylight Saving time, Monday, September 28, 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, Arith 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 ?ederal Reserve Banks or Branches on application therefor. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. - 2 Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departmment of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for $200,000 or less for the additional bills dated July 2, 1959, (91 days remaining until maturity date on December 31, 1959^ and noncompetitive tenders for $100,000 or less for the 182-day bills without stated price from any one bidder will be accepted In full at the average price (in three decimals) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 1, 1959, in cash or other immediately available funds or In a like face amount of Treasury bills maturing October 1, 1959. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, Inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need Include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or 0O0 loss. Treasury Department Circular No. 4l8, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of theirReserve issue. Bank Copies of the circular may be obtained from any Federal or Branch. 3°° ' !:" *» It » It is t q m U y important titat an effort of this n&turo bo isade through an institution ^the jiieBU)erehlp of^ which consists of the cossmunity of free nations t$^m^tmVbim to tha a o w A jsjonetary foSAoii&a r®pre®ent#^ t^jr the 2 W | ani adhering to the belief that' the mximumftccoi^pliahiRentof any society can be attained within the framevork ^f fr©« Qconoioies. If we can accomplish these objectives, m can mafte a contribution of lasting benefit to the lass dswloped countries* ®a recognise thai m are breaking new ground in an international undertaking of this sort* Because it is new we need to approach it with an attitude of flexibility. The Eacecutivs Directors of the IBSfi )mm the experience and res^ur««fulnss^ to dei^lop effective pcOi-cies and we can confidently rely on them in th*ir task of canyijig out tho oparationa of this new institution* The proposed J n t e a w t i O M ^ provides the opportunity for snaa&or countries to .ioin together to fwther eeonoraic progress in Hie less developed areas # the positive effort we will ba aak* .lug through this new iwtitution will ba ^an;^kiitional and effective answer to tfeo challengefeaffcrox&* ffe* m o d for it ia e S a a x ^ A o o o ^ *&• United States has introduced a re^lution aaking the Bank1 a Kacecutive Bireotor^ to formxOate articles of agreeramt for tfa* Xatanmtiaaai Development Association after full consideration of all aspects which they daam pertinent* ffao Estecutiv© Director* have mm tfaam adequat«3y daiaonstratad their ability in the past to purs™ this kind of task expeditiously, your *_3proval of toia resolution whan it is presented fof action* 0O0 m 3 m Q y o w rapr#* t thia inati a wotiM be both f©aaible and our further greatly aided Jy the in our consultationa* wo have outlinad our thoughts on th© basic framework of an %terna ideas were cireulal th© Bank to each of you early in August. In forwarding that latter to Mr. Black expreesedhi* v i w m a t auoh m AaaoeiaMoa toal* bo a valuable sxpplewnt to the offorts of the Iifjtarnatlonal Bank. la all realise that there are situations in tha leas ^velopod oountri^ where a sound project may wader institution*. It tho criteria of our astafoliahed w u l d be unfortxmate if wo did not situations, whera oftan raargia of ', * It would ha a_nia1 I T to organisation whisk coxajpetod or conflicted witli the oparationa of our othar to accomiaiah this purpose by establishing the new inctitution within tha frawwork of tha JBBB. In this warmer we will not ii?piir thia axiating lending institution which can ineet the aeads of bankable projaota. %% also want to be aura that wo are sufficiently imaginative aad reaourcoful to bring about effective use of two form of credit suificisnt3y discriiai-nating so that we add to, •y&it-w capacity of existing sound organisationa. id* tiae the 3e m 2 ** fhoa. of m frm ®m iad_Btrti_.v wmtoeiaa h a w I N S impressive gaiaa S» oar eooooalea. New and higher level* »f economic activity ha*. :1*«n: achieved, this has been rwuseoring t© the teiitad States sinoe erar iniaiP* national activities over many 7««r8 have been directed toward cooperating in th. _©i**wa_ raaoEHrbfoetian'^ oifcar iaiait«^ : e«mt^«» ; a»''w_l a r in helping the efforts of the lees developed areas. We wslcome the return of these other industrial countriea to m economic position Whoro thay are capable to an incraaeing aatant of participating, both directly and ticrou^i international financial institutions, in aroplemnting the baaic efforts of the developing countries themselves. I do not think it appropriate for m to comment on the inechanisma of • •my.. . ........ - • : . ;•_ . ... . . ' . . . carrying out direct financial relations between other countries* X would like, howover, to say that the very character of development financing require* longer term lending mm has M a n available from may existing national financial institutions. There 1$ a need, in addition to these direct efforts of each of us, for furthor Jo$3£t action by those repre»€2Tted hare to help progress of tha less developed areas in a way which will not boar heavily on their w t o r m l - •• " • • -.rx"- ^%-ru- ~ ...••... payusonts. I refer to the International Developraant Association, which is on th© agenda of tha Bank nee ting. Xou will rocali that at last year ! s matting* a*t h e direction of President Eiaanhowar, J stated tha view of m Government that an International BavaiapKjent Association as an affiliate •I- A> .• •. ** Of the International Bank warranted serioua atngy* 1 had no definite •: '•• . • • ••-'• ' iy ;• • -••''..•• course of action to suggest at that tiraa for such an asoooiatlon, but expressed tha hope that you would all give thought to thia rcatter. FIMAL mm m ta mmm9 *m fTjffffiiiiniM'nfJiTi _a mwmM ** lltOO AM. EDT and on bfcbalf of _jp Dolafatlon, in ^ of you by the Pra#idant of the United Statoa. jj *-w mimmw W^F ^PVIHJ* a w ^ w w > ^pf inau__urata^l, ^WI4PHIPPIHIPI «f-• ajF^^ wwaiiiwp^WTaiWHi>*a mw ww^-mnm^A- .aaw^^w ^IP ^ P B W ^ H T ww^pp by your thoughtful addreca, mill ba highly *a Mating, the Governor© considered the need for Bank and the Fund to increasa their financial capacity in to m r e affactivaly with the problems of ecoBoaic dewlopiaftat and havo acted with doapatch to th© proposals fonoulated by the ^jcecutive Directors. I am e w o that f Idance in th© Bank and tha greatly enhance the uaeftineaa of these two institutions in their futuro operations. We have seen in recent yoara intonaifiad offorts la tha loot developed countriea represented horo toraoveahead oooBOudoally. Tha Fund and tha lank,$ in their reapoctive roles, have dose much new resources they will, ba in a batter , and as a raault of to m a t appropriate on their funda. iiowevar, tha needa of tha lass dovoloped countries to at and f & sound and sustainable growth, a t i U further ehallenga tha eeonou&c ial atatesrsanahlp which thia group, costing hero froa the *any nations of the Free World, has showi in the past, HOLD FOR RELEASE ON DELIVERY TREASURY DEPARTMENT Washington 086 STATEMENT BI SECRETARY OF THE TREASURY ROBERT B. ANDERSON, GOVERNOR FOR THE UNITED STATES AT THE JOINT MEETING OF THE BOARDS OF GOVERNORS OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, THE INTERNATIONAL MONETARY FUND, AND THE INTERNATIONAL FINANCE CORPORATION, SHERATONPARK HOTEL, WASHINGTON, D. C , MONDAY, SEPTEMBER 28, 19,9, ABOUT 11:00 A.M.,EDT. ST. Chairman, Governors: I wish to join, both personally and on behalf of my Delegation, in the welcome extended to all of you by the President of the United States. We hope your stay here will be pleasant and that these deliberations, so notably inaugurated, Mr# Chairman,by your thoughtful address, will be highly productive • At last year's meeting, the Governors considered the need for both the -Bank and the Fund to increase their financial capacity in order to assist more effectively with the problems of economic development and financial and economic stability. The member countries have acted with dispatch to approve the proposals formulated by the Executive Directors. I am sure that not only the financial response itself but also the clear expression of confidence ih the Bank and the Fund will greatly enhance the usefulness of these two institutions in their future operations. We have seen in recent years intensified efforts in the less developed countries represented here to move ahead economically. The Fund and the Bank, in their respective roles, have done much to help, and as a result of their new resources they will be in a better position to meet appropriate demands on their funds. However, the needs of the less developed countries to attain sound and sustainable growth, still further challenge the economic and financial statesmanship which this group, coming here from the many nations of the Free World, has shown in the past. A-639 38 - 2Those of us from the industrial countries have seen impressive gains in our economies. New and higher levels of economic activity have been achieved. This has been reassuring to the United States since our international activities over many years have been directed toward cooperating in the post-war reconstruction of other industrial countries as well as in helping the efforts of the less developed areas. We welcome the return of these other industrial countries to an economic position where they are capable to an increasing extent of participating, both directly and through international financial institutions, in supplementing the basic efforts of the developing countries themselves. I do not think it appropriate for me to comment on the mechanisms of carrying out direct financial relations between other countries. I would like, however, to say that the very character of development financing requires longer term lending than has been available from many existing national financial institutions. There is a need, in addition to these direct efforts of each of us, for further joint action by those represented here to help progress of the less developed areas in a way which will not bear heavily on their external payments, I refer to the International Development Association, which is on the agenda of the Bank meeting. You will recall that at last year's meeting, at the direction of President Eisenhower, I stated the view of my Government that an International Development Association as an affiliate of the International Bank warranted serious study. I had no definite course of action to suggest at that time for such an association, but expressed the hope that you would all give thought to this matter. -3- 38 ° The subsequent informal discussions with many of you and your representatives encouraged w Government to feel that this institution would be both feasible and desirable. As a result of our further study, and greatly aided by the valuable opinions received in our consultations, we have outlined our thoughts on the basic framework of an International Development Association. These ideas were circulated by the President of the Bank to each of you early in August. In forwarding that letter to you, Mr. Black expressed his view that such an Association could be a valuable supplement to the efforts of the International Bank. We all realize that there are situations in the less developed countries where a sound project may require financing which cannot be provided under the criteria of our established international lending institutions. It would be unfortunate if we did not help in these situations, where often only a relatively small margin of capital is needed. It would be equally regrettable if, in jointly meeting this responsibility, we set up an organization which competed or conflicted with the operations of our other proven international institutions. It is, therefore, of great importance to accomplish this purpose by establishing the new institution within the framework of the IBRD. In this manner we will not impair this existing lending institution which can meet the needs of bankable projects. We also want to be sure that we are sufficiently imaginative and resourceful to bring about effective use of two forms of credit and at the same time sufficiently discriminating so that we add to, rather than take from, the capacity of existing sound organizations. -h- 7 89 It is equally important that an effort of this nature be made through an institution the membership of which consists of the community of free nations subscribing to the sound monetary policies represented by the IMF and adhering to the belief that the maximum accomplishment of any society can be attained within the framework of free economies. If we can accomplish these objectives, we can make a contribution of lasting benefit to the less developed countries. We recognize that we are breaking new ground in an international undertaking of this sort. Because it is new we need to approach it with an attitude of flexibility. The Executive Directors of the IBRD have the experience and resourcefulness to develop effective policies and we can confidently rely on them in their task of carrying out the operations of this new institution. The proposed International Development Association provides the opportunity for member countries to join together to further economic progress in the less developed areas. The positive effort we will be making through this new institution will be an additional and effective answer to the challenge before us. The need for it is clear. Accordingly, the United States has introduced a resolution asking the Bank's Executive Directors to formulate articles of agreement for the International Development Association after full consideration of all aspects which they deem pertinent. The Executive Directors have more than adequately demonstrated their ability in the past to pursue this kind of task expeditiously. your approval of this resolution when it is presented fofc action. 0O0 I urge (From National Advisory Council Report published August 19,9) PROPOSED INTERNATIONAL DEVELOPMENT ASSOCIATION THE Hon, EUGENE R. B L A C K , SECRETARY OP THE TREASURY, Washington, July 81, I960. '^aaW^to^iO^*^011 **ankf°r Reconstruction and Development, : At the opening joint session of the 1958 annual meeting or tne international B a n k for Reconstruction and Development and the International Monetary Fund at N e w Delhi, I called attention to the fact that the unitea btates was studying a proposal to establish an International Development Association as an affiliate of the International Bank. President Eisenhower had earlier asked m e to ascertain the attitudes of member governments toward the proposal, and, if the creation of an International Development Association appeared feasible, to initiate negotiations to that end. T h e N e w Delhi meeting offered an opportunity for fruitful contacts among the Governors of the Bank, and the preliminary responses to the International D e velopment Association proposal voiced there were encouraging. Since last October, w e in the U.S. Government have been engaged in further study of the International Development Association in an attempt to formulate a more specifio project. W e have had subsequent discussions with other members of the Bank, and m a n y members have shown a favorable attitude toward the concept of an International Development Association. W e are continuing our discussions with other B a n k members. Y o u will recall that as a basis for these discussions the U.S. Executive Director of the B a n k recently circulated to all the other Directors an informal paper giving the major outlines of an International Development Association as w e presently visualize it. W e realized that in m a n y cases a Director would be in a position to give only his personal views, and would not have the considered views of the government or governments he represents. Nevertheless, the reactions of Directors to this informal paper were useful and illuminating, and w e have kept these in mind in drawing up the m e m o r a n d u m which I have attached to this letter. W e have been m u c h impressed, as I a m sure you also have been, with the role played by the Executive Board of the Bank in bringing to fruition several complex proposals in the recent past. T h e International Finance Corporation, for example, came into being after a proposal was formulated in the Board of Executive Directors and submitted to the m e m b e r governments for approval. Just last year, the Executive Directors were charged with the task of submitting an appropriate proposal for increasing the Bank's resources. This task was successfully discharged, and governments are n o w acting on the resolutions drafted in the Executive Board. I believe the Executive Directors, in the case of the International Development Association, can again perform the invaluable function of taking the basic outline of an idea and fashioning it into a specific proposal. I a m convinced that there exists a sufficiently broad base of support for an International Development Association a m o n g the member governments that a plan carefully worked out by the Executive Directors would meet with widespread acceptance. It is m y hope that this year's meeting of the Governors will be the occasion for taking definite steps looking toward the establishment of an International Development Association along the lines of the attached paper. As Governor for the United States, I a m planning to place before the Board of Governors in September a resolution calling upon the Executive Directors to study carefully the question of establishing an International Development Association and, if feasible, to formulate of agreement appropriate submission to the momber governments. I articles International would Development appreciate Association it,for therefore, on the if you agenda would forplace the September the subject meeting. of the MY DEAR MR. BLACK - 2S t a U T ^ ^ be transmitted to the Bank by the United time and ?fX?wlVLDirect°r5 ??ake their recommendations within a reasonable ernmen^ t h ? Z J f o m m ^ d a t l ™ s are expeditiously presented to member govelrlvlnlQf^ £*•£* c o u l d £ ea c t e d upon formally by member governments would^ consMer thpG jT ° f ^ 6 ^ E * States'this would mean that the Congress Son. International Development Association during the 1960 011 w U a re n Jinn^l^l?/ i A S ? with me that the question of establishing an InUsrLsen? o f ^ h e C C ^ ~ t l o n isa ^tter of thefirstimportance, and that the and[vlfn^^a^norsKat+t1lle annual meeting to a resolution calling for a study toLld f W ! ? d a 1 l o n s 1 hy*¥ Executive Directors would be a significant step ired g0aL lXr^^f/r , J * 'I™?h ° P e t h a t b e t ween now and September the idea P n l ™ ^ J-nilQS• c o n s i d e f a t l o n within the member governments, and that the Tn 7£fc ? l b e *?a P°sltl°? t 0 support the U.S. resolution when it is offered. in this connection, I request that you forward a copy of this letter to each of the LrOverm)rs^together with any comments you might consider appropriate. ROBERT B. ANDERSON, Governor for the United States, International Bank for Reconstruction and Development. Attachment: Guidelines for Use in IBRD Executive Directors' Study of a Proposed International Development Association. INTERNATIONAL B A N K FOR RECONSTRUCTION A N D D E V E L O P M E N T , • , Washington, D.C., August 8, 1959. M Y D E A R G O V E R N O R : The Governor for the United States has requested m e to forward to you and the other Governors of the Bank the attached letter concerning the International Development Association. The letter expresses the Governor's intention to introduce a resolution on that subject at the next annual meeting and requests that the matter be placed on the agenda for that meeting. I have often said that in many less-developed countries the achievement of reasonable rates of growth will require more external capital than can properly . be provided by conventional loans of the kind which the International Bank is authorized to make, and that there would be substantial advantage in channeling a large part of such further external aid through a soundly organized international institution. This is the essential concept of the proposed International Development Association. It is m y opinion that, given suitable resources an,d functions, such an institution would be a valuable supplement to the International Bank's efforts to meet the pressing problems of developmentfinancingin the world today. Without expressing any views at this stage on specific aspects of the proposal, J can say that I a m fully in accord with the suggestion of the Governor for the United States that our meeting in September should be the occasion for taking action looking toward its consideration and, as I would hope, toward the establishment of an International Development Association. Yours sincerely, E U G E N E R. B L A C K , President. Attachments. (The attachments consist of the letter from the U.S. Governor to the President of the Bank and the "Guidelines" paper appended thereto. 33 - 3GUIDELINES FOR USE IN IBRD EXECUTIVE DIRECTORS' STUDY OF A PROPOSED I N T E R N A T I O N A L D E V E L O P M E N T ASSOCIATION (IDA) TT ^? focffitate the consideration of the IDA by the Executive Directors, the united btates submits herein certain guidelines which it hopes will form the basic tramework of the proposed organization. 1. Purpose.—The purpose of the International Development Association would be to promote, byfinancingsound projects of hi^h-priority, the economic development of less-developed member countries whose needs cannot be adequately met under International Bank lending programs. 2. Structure.—IDA should be a close affiliate of the I B R D ; membership in I D A would be open to all members of the I B R D . I D A should be a separate financial entity, but should be manned by I B R D personnel. 3. Voting.—Voting should be on a weighted basis, according to capital subscribed. 4. Size.—The authorized capital of I D A should be $1 billion. Members would pay in 50 percent of their subscriptions initially, and the remainder in equal installments over 5 years. 5. U.S. subscription.—The U.S. subscription would be proportional to the U.S. subscription in the International Bank, taking into account the proposed increases .in the I B R D . This would amount to about $320 million. 6. Replenishment.—At 5-year intervals the Governors of I D A should consider the desirability of increasing the capital of the institution. Any increase would require approval of three-fourths of the total voting power. Each member would have the right, although not the obligation, to subscribe to a portion of the increase in accordance with its proportion of the initial capital. The Board of Governors could also, by three-fourths vote, approve an increase in capital at any other time, provided prior capital obligations of members have been substantially discharged. 7. Currency subscribed.—Members would make their subscriptions in part in gold or fully convertible currencies, and in part in their own national currencies. Each payment made under the installment arrangements mentioned in paragraph 4 would consist in part of gold or fully convertible currencies, and in part of national currencies, in the proportions set forth in paragraph 8. The basis on which each part of a member's subscription m a y be used by I D A is also outlined in paragraph 8. 8. Use of currencies subscribed.—Twenty percent of each payment by each member should be in gold or in fully convertible currencies which would be freely disposable by IDA. The remaining 80 percent should be in national currencies and should be usable at a minimum for procurement of nationally produced goods and services for use in connection with IDA-financed development projects within the country concerned, or for procurement of nationally produced goods and services for export and use elsewhere in connection with IDA-financed projects. In no event would I D A engage infinancingtrade in commodities not related to IDA-financed development projects. 3Q^ w s_. - 4In addition to the basic m i n i m u m usability of the 80 percent of subscriptions paid in national currency, there should be provision in regard to this 80 percent for— (a) T h e convertibility of 30 percent as required by I D A . T h e obligation to m a k e this portion of its national currency convertible on d e m a n d should extend to all members except those to w h o m I D A granted a suspension of the obligation. This suspension would not be given to any of the industrialized countries, and countries receiving suspensions should not have an aggregate of more than about a quarter of total subscriptions. (6) T h e convertibility of the remaining 50 percent of subscriptions paid in national currency by the industrialized countries if and w h e n all of the industrialized countries agree to such a move. T h e United States would m a k e this portion of its subscription available on a fully convertible basis * so long as the other industrial countries do the same. Under these arrangements, the I D A would have the responsibility for taking account of the economic position of a less-developed country in using such a country's currency, from whatever ,source acquired. A n operating principle of I D A would be that I D A would maintain reasonably uniform rates of usage a m o n g the subscriptions in national currencies which become convertible as provided in (a) or (6) above, after first using the holdings of the currency of the country of procurement. 9. Borrowing authority.—IDA should have authority to borrow from m e m b e r governments, or other sources. 10. Special resources provided in local currencies.—Arrangements should be m a d e to permit I D A to receive from one m e m b e r the currency of another member. Transfers of such currency would be over and above the member's subscription to the regular capital of I D A . Currencies so transferred should be available on terms which impose no greater restrictions on their use by I D A than previously applied to their use. Efforts would be m a d e to secure the agreement of m e m b e r countries, in accepting the I D A charter, to cooperate in facilitating reasonable transfers to I D A of their currency which another country wishes to m a k e available. T h e m e m b e r would receive nonvoting "special development certificates" in exchange for currency provided. These certificates would carry a right of recovery of any such currency remaining upon liquidation of I D A . In addition, holders of certificates would be eligible to receive half of net operating profits derived from use of the resources provided. r k. n. WSPAFISS, Tuesday, September 29. 19$9. /V / f\ U s .• ^ The Treasury Department announced last evening that tha tenders for two series of Treasury bills, one series to be an additional issue of tha bills dated July 2, 1959, and the other series to be dated October 1, 1959, whioh were offered on September 2k9 were opened at the Federal Reserve Banks on September 28* Tenders were invited for $1,100,000*000* or thereabouts, of 91-day M i l s and for $*QQ,000,Q00, or thereabouts, of 182-day bills, The details of thetooaeries are as follows: MJI Of ACCEPTS fl-iay Treaawy Mils t 10f~«iajr Treasury bills GOWBTITIfE BHJSs raftturlng December 31, 1959 J aatairtnf Mfrrch 31» I960 •MMWMMMftMiMMM^^ 99mmmmm9m9mm99mmm9mgmm^9mmmm99mmm99Mmmm9m9m9mimm9mm9m99m. <m*mmmmmmmmmm^mmmHmmmtM99mi. M M W M M M W M 98.961 */ 96*927 98.91*0 im s f : i I * * Jt.llOg k.2k$$ h*lM Approx. Equiv. Annual Bate k*®M .4.9813S i*.895* Price 97*550 b/ 97*1*82 ~ 97-526 9m9»mmmmm99mmmm.m9i>m9)9mmmm> mm9mm999m99999$mmmmmmm99mm9m99 a/ Excepting one tender of $2,000,000 W Excepting two tenders totaling $101,000 US pereent of the amount of 91-day bills bid for at the low price was accepted percent of the amount of 182-day M i l e bid for at the low price was accepted TOTAL ffBTOEtS APFLMB FOE AM ACCEPTED BI m&ML MSEMW MBTIICTS. District Applied For Aeoepted $ Applied For — — * — — * « • » * • — « — !•_ i ii 11„ mi 11 mm m9tmmmm%9tmmmm»mmm9mm9mmmmmm>m>. 9mmmm*mmim9)<mi999m9mmmm9*m mJSmmmmm9m*i9i999mm99mmmmm» * Boston Maw Turk Philadelphia SUwland Richmond Atlanta Chicago St. _ouis Minneapolis Kansas City Balla* San Francisco $ 24,651,000 1,536,892,000 27,215,000 36,106,000 11,244,000 18,279,000 160,331,000 20,024,000 9,192,000 34,263,000 14,045,000 55,226,000 # mm *M>**M««««arfMiaMiHaw4|iaMMiN» iiiiMfunTp m iimiifi t v> 14,651,000 804,342,000 12,215,000 30,856,000 22,244,000 17,479,000 97,981,000 18,024,000 9,192,000 21,263,000 14,045,000 48.726,000 : $ 13,151,000 : 525,884,000 : 10,969,000 t 14,219,000 t 1,447,000 * 2,697,000 i 76,986,000 i 8,367,000 s 2,702,000 t 5,662,000 j 4,713,000 t 40.657,000 —mmmmmmtnrtm iimmmimmm9mmwm $ 13,151,000 257,634,000 5,969,000 9,219,000 1,392,000 2,697,000 52,986,000 8,367,000 2,702,000 5,652,000 4,713,000 35,657,000 ^mmmSmSmmimmmmmmmmmmmmmmmmmmmmm I TOTALS fl,9i*9fi*68,000 H,100f0l8,00qe/s $707,1*54,000 ^00,139 f OOOd/ 0/ Includes #201,988,000 nonooiapetitive tenders accepted at toe average priee of 98.9b 3 / Includes 11*6,769,000 noncompetitive tenders accepted at the average price of 97.526 :oc XJREASURY DEPARTMENT •UJUJI-MWIT" inn __sn W A S H I N G T O N , D.C. RELEASE A. M, NEWSPAPERS, Tuesday, September 29, 1959, A-61*0 Treasury Department announced last evening that the tenders for two series o* Treasury M i l s , one series to be an additional issue of the bills dated July 2, 1959, and the other series to be dated October 1, 1959, which were offered on September 2l*, were opened at the Federal Reserve Banks on September 28 • Tenders were invited for i'f-2 0 ' 000 ' 000 ' o r thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of IB 2-day bills • The details of the two series are as follows: RANGE 0? ACCEPTED 91-day Treasury bills 182-day Treasury bills COMPETITIVE BIDS: maturing December 31» 1959 maturing March 31* I960 Price Approx. Equiv. Annual Rate Price Approx. Equiv. Annual Rate l*.8i*6$g h.981% 1*.895£ High 98*961 a/ 97.550 b / lull<# Low 98.927 ~ 97.1*82 ~ i*.2U5# Average 98.91*0 97,526 h*19h% a/ Excepting one tender of $2,000,000 F/ Excepting two tenders totaling $101,000 55 percent of the amount of 91-day bills bid for at the low price was accepted 61 percent of the amount of 182-day bills bid for at the low price was accepted TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS: District Applied For Accepted * • Applied For Accented $ 13,151,000 24,651,000 $ 14,651,000 •• $ 13,151,000 Boston 257, 631*, 000 804,342,000 • 525,881*,000 1,538,892,000 New York : 10,969,000 5,969,000 12,215,000 * 27, 215,000 Philadelphia lU,219,000 9,219,000 30,856,000 :• 36,106,000 Cleveland 1,1*1*7,000 1,392,000 • 2,697,000 2,697,000 11,244,000 11, 244,000 Richmond • 76,986,000 52,986,000 17,479,000 18, 279,000 Atlanta : 8,367,000 8,367,000 97,981,000 331,000 160, Chicago : 2,702,000 2,702,000 18,024,000 024,000 20, 5,662,000 5,652,000 St. Louis li, 713,000 U,713,000 9,192,000 9,192,000 Minneapolis 1*0,657,000 35,657,000 21,263,000 34, 263,000 Kansas City 14,045,000 $1. i4,o45,ooo : $707,1*5^,000 Dallas $1*00,139,OOOd/ $1,949,468,000 T0TAI3 _ # _ 226,000 48,726,000 San Francisco c/ Includes $201,988,000 noncompetitive tenders accepted at the average price of 98.91*0 3/ Includes $1*6,769,000 noncompetitive tenders accepted at the average price of 97.526 Treas. HJ 10 .A13P4 v.118 Treas. HJ 10 .A13P4 U.S. Treasury Dept. Press Releases U.S. Treasury DeDt. AUTHOR Press Releases TITLE v.118 DATE LOANED /lftt/pt BORROWER'S NAME PHONE NUMBER U.S. TREASURY LIBRARY 1 0031490 •