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LIBRARY
pnowi 5030
JUN 151972
TREASURY DEPARTMENT

TREASURY DEPARTMENT
•M_—iw^_iaffiCT—MHMm-nsaBiSMraragii^^

W A S H I N G T O N , D.C.
RELEASE A. M. NEWSPAPERS, Tuesday, October 4, I960.

A-945

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 July 7, I960,
and the other series to be dated October 6, I960, which were offered on September 28,
were opened at the Federal Reserve Banks on October 3. Tenders were invited for
$1,000,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts,
of 182-day bills. The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS J

High
Low
Average

91-day Treasury bills
maturing January $. 1961
Approx. Equiv.
Price
Annual Rate
99.388
99.367
99.375

2.4212
2.5042

2.k73%y

182-day Treasury bills
maturing April 6, 196l
Approx. Equiv,
Price
Annual Rate
98.538 a/
98.510 "'
98.521

2.8922
2.9472
2.9252 y

a/ Excepting six tenders totaling $3,420,000
73 percent of the amount of 91-day bills bid for at the low price was accepted
24 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
*
21,425,000
1,379,639,000
32,602,000
18,456,000
10,276,000
19,411,000
160,584,000
23,209,000

Accepted
Applied For
Accepted
$
11,1*25,000 s $3,088,000
B 3,088,000
707,239,000 :
824,644,000
410,904,000
14,602,000 :
7,389,000
2,389,000
18,156,000 :
24,562,000
15,762,000
10,276,000 :
1,655,000
i,655,ooo
19,011,000
5,196,000
5,596,000
99,584,000
26,814,000
,
69,194,000
21,709,000
4,367,000
4,367,000
15,246,000
2,161,000
i5,5i6,ooo
4,161,000
29,951,000
5,773,000
34,031,000
6,533,000
10,535,000
2,795,000
10,635,000
3,395,000
000
42,126,
19,218,000
43,126,000
37,598,000
4Soo,i__,606 c/
^,182,06b
U,1W,9l69606 $1,000,160,000" b/
b/ Includes $184,524,000 noncompetitive tenders accepted at the average price of 99.375
c/ Includes $38,065,000 noncompetitive tenders accepted at the average price of 98.521
1/ On a coupon issue of the same length and for the same amount invested, the return on
"
these bills would provide yields of 2.522, for the 91-day bills, and 3.012, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather than
the amount invested and their length in actual number of days related to a 360-day
year. In contrast, yields on certificates, notes, and bonds are computed in terms
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semiannual
compounding if more than one coupon period is involved.

- 2 th T?Immediately after the closing hour, tenders will be opened at
^ne 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
fuV1me(i 0 f t h e acce Ptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
, n -? e ? de £ Sj i n w h ° l e o r i n 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
October 27, I960, (91 days remaining until maturity date on
April 27, 1961)
and noncompetitive tenders for $100,000
or less for the 382 -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 January 26, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 26, 1961. 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 the Treasury bills and govern the conditions
of theirReserve
issue. Bank
Copies
of the circular may be obtained from any
Federal
or Branch.

TREASURY DEPARTMENT
, ,i
i i,
l'fil.. . ::.»,i"i r l .v

11 i.,, ,..„.,1,!,,w,«..iin „,, t,.,.«,, i i n M u i i \ :imv;iwiu'jni')iim_inurm

WASH,4GTON, D.C.
IMMEDIATE RELEASE,
Wednesday, January 18, 1961.

A-1031

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 January 26, 1961, in the amount of
$1,400,840,000, as follows:
91-day bills (to maturity date) to be issued January 26, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated October 27, i960, and to
mature April 27, 196l,
originally issued in the amount of
$ 400,087,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
January 26, 1961, and to mature July 27, 1961.
The bills of both series will be issued on a discount basis undo
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value) . /,
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, January 23, 1961. 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.

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, _«00 -o
Wednesday, January 18, 1961

' '
.

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> fo

cash and in exchange for Treasury bills maturing January 26, 1961 , in the amount
of $ 1,400,840,000 , as follows:

—m—"
91 -day bills (to maturity date) to be issued January 26, 1961 ,
in the amount of $1,100,000,000 , or thereabouts, represent«^--__

ing an additional amount of bills dated October 27, I960 ,
and to mature April 27, 1961

, originally issued in the

ip_E
amount of $ 400,087,000

, the additional and original bills

to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
January 26, 1961 , and to mature July 27, 1961

pi?

£-£T

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 amo
will be payable without Interest. They will be issued in bearer form only, and in

denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matur
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, January 23, 1961

p_5
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

- 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 incorpo-

rated banks and trust companies and from responsible and recognized dealers in inv

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

ting tenders will be advised of the acceptance or rejection thereof. The Secretary

of the Treasury expressly reserves the right to accept or reject any or all tender

in whole or in part, and his action in any such respect shall be final. Subject to

these reservations, noncompetitive tenders for $ 200,000 or less for the additiona
3*p_89
bills dated October 27, I960
, ( 91 days remaining until maturity date on

'
April 27, 1961

{pgg
182

Sp&J

£_&)

J and noncompetitive tenders for $ 100,000 or less for the

-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 January 26, 196l

_n cash or

_5__3

other immediately available funds or in a like face amount of Treasury bills matur
ing January 26, 1961 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 exe-cptiort., as such, and lo

- 391

from the sale or other disposition of Treasury bills does not have any special

treatment, as such, under the Internal Revenue Code of 1954. The bills are subje

to estate, inheritance, gift or other excise taxes, whether Federal or State, but

are exempt from all taxation now or hereafter imposed on the principal or intere
thereof by any State, or any of the possessions of the United States, or by any

local taxing authority. For purposes of taxation the amount of discount at which

Treasury bills are originally sold by the United States is considered to be inte

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amo

of discount at which bills issued hereunder are sold Is not considered to accrue

until such bills are sold, redeemed or otherwise disposed of, and such bills are
cluded from consideration as capital assets. Accordingly, the owner of Treasury

bills (other than life insurance companies) issued hereunder need include in his

income tax return only the difference between the price paid for such bills, whe

on original issue or on subsequent purchase, and the amount actually received ei

upon sale or redemption at maturity during the taxable year for which the return
made, as ordinary gain or loss.
Treasury Department Circular No. 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.

TREASURY DEPARTMENT
W A S H I N G T O N , D.C
RELEASE A. M. NEWSPAPERS, Tuesday, January 17, 1961.

A-1030

The Treasury Department announced last evening that the tenders for two series oi
Treasury bills, one series to be an additional issue of the bills dated October 20,
I960, and the other series to be dated January 19, 1961, which were offered on January 11, were opened at the Federal Reserve Banks on January 16. Tenders were invited
for $1,100,000,000, or thereabouts, of 91-day bills and for $400,000,000, or thereabou
of 182-day bills. The details of the two series are as follows:
RAN3E OF ACCEPTED
COMPETITIVE BIDS:

High
Low
Average

91-day Treasury bills
maturing April 20, 1961
Approx. Equiv,
Price
Annual Rate

182-day Treasury biHs
maturing July 20, 1961
Approx. Equiv.
Price
Annual Rate

99*413 y
99.400
99.404

98.730 b/
98.717
98.721

2.3222
2.3742
2.3582 1/

2.5122
2.5382
2.5302 1/

a/ Excepting two tenders totaling $945,000
£"/ Excepting one tender of $175,000
7x2 percent of the amount of 91-day bills bid for at the low price was accepted
11 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 j
: District
Applied For
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San JTancisco
TOTALS

Applied For
$
30,920,000
1,319,637,000
30,415,000
40,508,000
17,952,000
23,987,000
235,406,000
32,484,000
14,665,000
44,383,000
17,557,000
80,769,000
^1,588,603,000

Accented
$
20,820,000
687,107,000
15,415,000
34,508,000
17,952,000
21,787,000
145,666,000
30,484,000
9,265,000
28,383,000
17,557,000
71,499,000
&L,100,Wi3,000

1
1

$15,053,000
813,341,000
7,285,000
18,934,000
2,430,000
6,035,000
81,733,000
7,129,000
6,097,000
7,856,000
3,567,000
24,915,000
$994,375,000

Accepted
$ 3,243,000
318,178,000
2,285,000
10,734,000
2,230,000
3,635,000
27,823,000
4,529,000
2,497,000
7,681,000
2,767,000
14,420,000
$400,022,000 [\l

0/ Includes $269,533,000 noncompetitive tenders accepted at the average price of
d/ Includes $56,321,000 noncompetitive tenders accepted at the average price of 98.721
T/ On a coupon issue of the same length and for the same amount invested, the return oi
these bills would provide yields of 2.412, for the 91-day bills, and 2.6Q2, for *
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather tha
the amount invested and their length in actual number of days related to a 360-da;
year. In contrast, yields on certificates, notes, and bonds are computed in tern
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semianfl)
coaipounding if more than one coupon period is invol .„ 1

17
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treasury bills, #n» §®r£«s tc %m an « * - U I M » 1 i*su* of Mm i H H # cwrfcaa et,«r 00,
I960, ant trie oihrr series t® i# dfttad J i » « 7 19, 1961, vfclafti war* •*$•*•* ©a Mm*
mvy il, were cpsnad at mm m®m$ml »mmvm H a k i en $mmmwf M* faai®rs mm
irniUA
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fftntptiat to» tenters toM-i* tlfcfftOQQ
E»o#pting on© terser of fl7$9000
percent «f tlw « M m « t #f n«4_jrfcftXX*M A ft* *t tht Xor pli4§ wag tc^y&i
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2,230,003

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f-mv hm® mmm provide ^ 0 ^ «T 2.4lf, for t ^ n « « V M i l * , aai 2.601, Iter ^ ^
MtHlay liiU0« »t«?s#i ffti00 on hSUM mm w@&*
!• %»»«0 •* ^ ^ 4^g««wi vlih
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if w r t t » n os^i OOUPO:I i>eriod In invoiwd.

A'?i-

32 s

TREASURY DEPARTMENT
WASHINGTON, D.C.

IMMEDIATE RELEASE,
Monday, January 16, 1961.

A-1029

During December i960, 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 $39*703,700.

0O0

31F

T R E A S U R Y DE
BBSII

^WHIIIiW«BMi

WASHINGTON, D.C

IMMEDIATE RELEASE
rf&nokvs^W

+ y )(of iy&!

During TTO'¥omTi>mir. i960, 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

^39fJo3,yaO

0O0

.u
6* 1961

The foxlswiag
of th^ gover-aeat for

In direct _ad
« during the south

10x^x3*900

3t 9 TO,m

o/ J
STATUTORY DEBT LIMITATION
A S OF December 31, I?6Q

.
Washington, J a n . l b

_
.
of &%£,

_, , c ,
Hih?(a°«

196l
j,—^-±_

. t :i_rr„ n„„J irr a<: amended, provides that the face amount of obligations issued under authority
.L^rttVofBob".fea.io- V T a S 5. «. principal ar... in.eres. b, .he U n L d States
te^jekj-J

(Act of June 30, 1959, U.S.C.. title 31, sec. 'y°* . . «... . ' reJeemable prior to maturity at the option of the
demptioo value of any obligation issued on a * * ; ^ » » . ™g(£Ct(r56i
86th Congress) Provides that during the period
fife
« ' J M M . 1 9 S anrenrgDt,;neT30,A196l! & \ ^ \ Z L l a . (*285,000,000,ofo) shall he temporarily increased |*

^'TheTonowing table shows the face amount of obligations outstanding and the face amount vvhich can still be i
this limitation :
Total face amount that may be outstanding at any one time

.
? 2 9 3 » 0 0 ° »000,000

Outstanding Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $39 M5 • 778 .000
Certificates of indebtedness

18,441,629,000

Treasury notes

51,283,979,000

BondsTreasury
* Savings (current redemp. value)

7 9 ,793 ,677 ,050
^ 7 > 1 5 9 , H o , yyy

Depositary.
R.E.A. series
investment series
Special FundsCeriificates 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

^eiInt-Il..DeveiQp. fc ..As5.!.n.
Totai

$109,171,386,000

136 , 649 , 000
H . 0 7 9 ,000
6.152.477,000

133 . 253 .001,

7,210,463,000
9 ,598 ,4l6 , 0 0 0
27.537.385.000

44.346.264,000
2 8 6 ,770 , 6 _ 1 , 0 4 9
465,998,600

5 1 , 196,589
(OLtL^2,(
2,469,000,000

57...652...2.00......

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A&..DC..Stad.Bds .
155,009,900
Matured, interest-ceased
928,425

2, ^8,610,216
289.815,259.865

1^,9?8,?2?

Grand total outstanding
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt ...?£?.£$.?£. 31»_1?60
(Date)
-r^o,™
December 30,1960
,
r • ., • A c. .
(Daily Statement of tne United States Treasixy,
,
•?....:..,..'..
v
(Date)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.
Deduct - other outstanding public debt obligations not subject to debt limitation

A-1028

^ A o'firtl il
3.02o,o01i_

)
2 9 0 , 2 1 6 , 6 1 5 ,2ft
n
Q ^ g „,
- r 7 l' • « ^ g
u-S ' < « ' Y
*^11 777 tM
2oy, V (x, 19o»1,

< •

t. It'
STATUTORY DEBT LIMITATION
A S O F December 31. 1%0

- , Q £,

—
"
Washington, Jail. 1 6 > -^VO-1Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations^i8SUed under ^hothy
,f that Act, and the face amount of obligations guaranteed as to principal and interest by the United States[_(« C /P^chgua^otee
Act
lemption value ot any U W I K B U U U issaea on a ui»i-vr_n. ^«~.»~ .*
— —_____---. ^_--_ ~~
»"" ' ••
t_ * J • ^ ^ :^j
shall be considered as its face amount." The Act of June 30, I960 (P.L. 86-564 86th Congress) provides that during the period
ttginning on July 1, I960 and ending June 30, 1961, the above limitation ($285,000,000,000) shall be temporarily increased by
18,000,000,000.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
:his limitation :
Total face amount that may be outstanding at any one time
$293,000,000,000
Outstanding Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $39,445,778,000
Certificates of indebtedness
Treasury notes

1 8 ,44l ,629 t000
• 51,283,979,000

BondsTreasury
* Savings (current redemp. value)

$109,171,386,000

79.793.677.050
4 7 ,159 » H o ,999

Depositary.
R.EoA. series
Investment series „

136,649,000
1 1 , 0 7 9 ,000
6.152.477.000

Special FundsCertificates of indebtedness

133,253.001,049

7.210,463.000

Treasury notes
Treasury bonds
Total interest-bearing

9 .598 ,4l6 , 0 0 0
27.537.385.000

Matured, interest-ceased

44.346.264,000
286,770,651.049

465»998|600

)
Bearing no interest:
United States Savings Stamps.....
Excess profits tax refund bonds
Special notes of the United States:
Internal'1 Monetary Fund series

51.196,589
761,427
, 2,469.000,000

xpsaiInt.ll..De^elQp....As5.'.a,
Total

57.652.200

2.578.610,216
289,815.259.865

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F . H . A & . . D C . . S ± a d . B d s .
Matured, interest-ceased..

155.009,900
928,425

155.938.325

Grand total outstanding
Balance face amount of obligations issuable under above authority..
Reconcilement with Statement of the Public Debt „.2®?.®?5?£..2.1.!...J!:?.„9.
(Date)
(Daily Statement of the United States Treasiry,
5?.°?.™£..3.9.»i?.„.9
)
(Date)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.
lodnrr « other outstanding public debt obligations not subject to debt limitation

A-1028

2 o y t.7/1 l l ? b , I 7 Q
J ,02o,o01,ol0

290,216,815,242
? ^
'
^
J
-^J\,J—iy
J.
290, V 2 , /jJt^O,
U
-*-»OPP \J\(
289,971,198,190

-4-

'if-\y „

Inasmuch as the fiscal year 1962 budget assumes a rising level
of business activity throughout most of calendar year 1961, it is
apparent that the projected surplus (assuming appropriate actions b
the Congress, in keeping with the P r e s i d e n t s legislative requests)
will be realized only if the economy responds as expected. If the
economic advance exceeds expectations, the surplus will be
appropriately larger. On the other hand, if the economic advance
falls short of our expectations, the Federal fiscal position will
move toward deficit. As I have stated several times, the
incurrence of deficits is not only unavoidable but may even be
helpful during periods of pronounced economic slack. The proper
goal is to strive for surpluses in periods of strong business
activity sufficient to more than offset the deficits that may occur
in periods of slack.
I should like to add my strong surpport to the President's
renewed request for removal of the 4-1/4 percent interest rate
ceiling on new issues of Treasury bonds. The incoming administratlc
faces a difficult problem in managing our $290 billion Federal
debt. The existence of the interest rate ceiling during much of
1959 and i960 effectively blocked the debt extension that is
essential to achievement of better balance in the debt structure.
As a result of the Treasury's inability to extend maturities, the
1 to 5-year marketable debt expanded by $17 billion between the
end of 1958 and the end of i960 (from $54 billion to $71 billion),
despite the fact that this maturity sector was already badly overcrowded when the period began. Although the debt maturing in
less than one year, at $75 billion, is perhaps not too large in
view of the economy's liquidity needs, the fact is that this very
short-term debt will tend to grow larger and larger, simply as a
result of the passage of time, as the securities now in the 1 to
5-year sector move closer to maturity. This would further complicat
the already difficult tasks of debt management and monetary policy.
The problem of the 4-1/4 percent interest rate celling is not a
transitory problem,8 it Is a barrier that must be removed if debt
management is to be handled in the best Interests of the American
people.
I should also like to add my strong support to the President's
request for an increase in postal rates to make the postal service
self-supporting, and for necessary Increases in taxes on motor and
aviation fuels. Assuming these and the other proposals of the
President are accepted by the Congress, the 1962 budget will Indeed
respond to the needs of the American economy.
0O0

- 3-

:iU

savings and loan associations. .Such a build-up in liquidity serves
both as a condition for and stimulant to a resumption of economic
advance•
This view of the prospects for the economy justifies revenue
estimates reflecting substantial advances in economic activity in
calendar year 1961. Still, the estimates may well prove to be
conservative. The estimated rise in corporate profits between
i960 and 1961 is $1 billion. The estimated rise in personal income
of $10 billion compares with an average annual rise in the past
five years of almost $20 billion. It is our opinion that the
economic advance which is in prospect for the economy in 1961
should readily produce the increases in Federal revenues assumed
in the fiscal year 1962 Budget.
In adjusting Federal fiscal policies so as to contribute to the
goal of sustainable economic growth, we should, in my judgment, relj
primarily on the tremendous built-in flexibility in the Federal
budget. This flexibility, as reflected in the operation of the
so-called "built-in stabilizers," coupled with flexibly administered
monetary policies, has consistently provided powerful forces for
economic stability in the postwar years. As I have emphasized
before, any decision to engage in overt fiscal actions to stimulate
the economy during a period of economic slack should await clear
indications that such built-in flexibility (along with expansive
monetary policies) Is not sufficient to promote resumption of
growth.
The built-in stabilizers have been at work in calendar year
i960. For example, between the first and third quarters of i960,
the expenditures and receipts of Federal, State and local government
on national income and product account are estimated to have
shifted from a $3.9 billion surplus (at seasonally adjusted annual
rates) to a $1.8 billion deficit, with the Federal Government
accounting for most of the shift. This change represented a total
shift towards deficit in the government income and product account
of $5.7 billion, and it is probable that a further move in this
direction took place in the final quarter of the year. This large
shift in i960, despite the mildness of the economic adjustment,
testifies to the strength of the built-in stabilizers in the
American economy. (Note: The Federal Government's surplus or
deficit on national income and product account is not the same as
its surplus or deficit in the administrative budgeTTor in cash
payments to and receipts from the public. The trend in government
surplus or deficit on income and product account is a much more
significant and timely measure of changes in the government's Impact
on aggregate income and demand than are changes in the surplus or
deficit of the administrative budget.)

- 2 -

309

coming fiscal year and should also be consistent with the proper
role of Federal fiscal policies in promoting relatively high and
efficient use of our economic resources. The fiscal year 1962
budget, we are convinced, fully meets these tests.
The calendar year i960 was a year of economic adjustment.
Following widespread expectations early in the year of soaring
economic activity, a sharp decline in the rate of inventory accumu.
lation resulted in a decrease in industrial production and
employment. In my judgment, this sharp decline (from a seasonallyadjusted annual rate of accumulation of $11-1/2 billion in the
first quarter to a liquidation rate of approximately $4 billion
in the final quarter) resulted mainly from the pronounced decrease
in inflationary expections, a growing belief on the part of
businessmen that goods could be obtained readily and in large
amounts, improving techniques of inventory control, and failure
of consumer demand to rise as rapidly as generally expected. In
view of the $15-1/2 billion decline In the rate of inventory
spending, it is both striking and heartening that gross national
product in the final quarter of the year was above the first
quarter level and that final demand grew without interruption durin
the year.
We believe that the United States economy in calendar year
1961 will once again demonstrate the inherent strength and
resiliency that it has shown in earlier postwar adjustments and
advance to markedly higher levels. This view is supported by the
performance of certain important economic indicators in recent
months. Retail sales, a key barometer of consumer attitudes and
income positions, have remained close to record levels. Personal
income has exhibited strength, despite the relatively high level
of unemployment, and disposable personal Income in real terms has
continued to advance. With this rise in real income and a
substantial increase in individual savings, the financial position
of consumers has strengthened significantly. Business capital
expenditures, according to recent surveys, show substantial resista
to the squeeze on profit margins and are expected to decline only
slightly in 1961. Total government spending (Federal, State and
local) has been rising at a relatively rapid rate in recent months.
Most importantly, as the inventory adjustment nears completion, any
resulting shift toward inventory accumulation would, of course,
add significantly to business demand for goods and stimulate
production, employment, and Income.
Another factor pointing to a resumption of economic growth
is the pervasive impact of the program of monetary ease, followed
with vigor in recent months by the Federal Reserve System. As
the monetary system has received additional funds, liquidity In the
deposits
economy has
(particularly
grown apace,
time
as and
reflected
savings
indeposits)
sharp increases
and shares
in bank
in

TREASURY DEPARTMENT
Washington

FOR RELEASE AT 12 NOON, EST,
MONDAY, JANUARY l6, I96I.

^HR

A-1027

STATEMENT BY SECRETARY OF THE TREASURY ANDERSON
For the current fiscal year, 1961, net budget receipts are
estimated at $79.0 billion, reflecting an increase of $1.3 billion
over fiscal year i960. A further rise of $3.3 billion to $82.3
billion is estimated for fiscal year 1962. These revenue
projections, coupled with estimates of expenditures and favorable
Congressional action on the President's legislative requests as
set forth in the budget message, would result in budget surpluses
of approximately $0.1 billion for this fiscal year and $1.5 billion
for fiscal year 1962. Specific assumptions underlying these
revenue estimates are:
Calendar year

I960

-9bT~

(In billions of dollars)
Personal income 404 415
Corporate profits ...
45
46
After adjusting for changes in budget accounting procedures,
the revenue estimate for fiscal year 1961 is $3.9 billion less than
estimated in January i960. This shortfall reflects primarily the
sharp decline in estimated corporate profits for calendar year
i960. In January, earnings of corporations before taxes were
estimated at $51 billion, or $6 billion higher than the current
estimate. Revenues from this source are now estimated to be
$3.1 billion lower. In addition, receipts from individual income
taxes are expected to be approximately $400 million lower than
estimated last January, even though personal income for calendar
year i960 appears to have been close to the original estimate. The
shortfall in this instance arises from a shift within the total of
personal income, with wage and salary payments in recent months
being somewhat less than estimated and transfer payments, which
yield less revenue to the Federal Government, being somewhat higher.
Revenues from all other sources in fiscal year 1961 are expected
to be about $400 million lower than estimated last January.
The 1962 Federal budget, the final budget of this Adminlstratio:
has been prepared with a full awareness of the state of the economy
and our domestic and international responsibilities. The
Administration recognizes that the Federal fiscal position — as
reflected in surplus, balance, or deficit — is highly Important
as a framework for Congressional and Executive actions in the

Washington

FOR WMtMBW m is mm, mW9
mmAY. JAHUAHY 16. 1961.
!

mmmmmmml

^i ****/. &<*-

£ .

STATSW-RT M

% M | |

SECRETARY OF « g TREASURY iWBBISG*

For the current fiscal year, "19&, net budget reeeip%m mm estimated
at B19.0 billion, reflecting m

increase of #1.3 Mlllon ot«r fiscal year

i960. A further rise of #3.:f billies to $80.3 billion is estimated for
fiscal year 1 0 2 . these revenue projections, eoupled with estimates of
expenditures and favorable Congressional action on the President «s legislative requests as set forth in the budget message, would result in
bttdget surpluses of approximately $0.1 billion for this fiscal year and
$1.5 billion for fiscal year 1962. Specific assumptions underlying these
revenue estimates are:
CtelftBft&r year
{it^iUloas 0$ dollSs!
Fersonal tneoae . . . ; •-Bkw **?
iorporate profits . . .
k$

M5
k6

After adjusting for changes In budget accounting procedures, the
revenue estimate for fiscal year I96I Is $3.9 billion less than estimated
la January i960. this shortfall reflects primarily the sharp decline in
estimated corporate profits for calendar year i960. In January, earniags
of corporations before taases uere estimated at 01 billion, or $6 billion
higher than the current estimate. Revenues from this source are now
estimated to be #3.1 billion lower.
- m

In addition, receipts froa individual
• • • --' -••:•

•••'-'•

"-:.J-

• ---•'

income taxes are expected to be approximately $^00 million lever than

301
-1 estimated last January, even though personal income for calendar year
*•

/) & C ?

C/£'J> G*

^"c

I960 appears to have; matslisd the original estiaate* The shortfall in this
mi-

instance arises from a shift within the total of personal income, with
wage and salary payments in recent months being. ~"

an"

* "

transfer payments, which yield less revenue to the federal Govern%etnf F*mtwi*f~ '4if4ea<
aentj^ Revenues frea all other sources is fiscal year 1961 are expected
to be about $%©0 million lower than estimated last January.
the X$6B Federal budget, the final budget of this Administration,
has been prepared with a full awareness of the state of the economy and
our domestic and international responsibilities. The Administration
recognises that the Federal fiscal position — as reflected in surplus,
balance, or deficit — is highly iatortant as a fraaewor_ for Congressional and Executive actions in the coming fiscal year and should also be
consistent with the proper role of federal fiscal folieifs in preaoting relatively high and efficient use of our economic resources. The
fiscal year 1962 budget, we are convinced, fully meets these tests.
The calendar year i960 was a year of economic adjustment, following
widespread expectations early in the year of soaring economic activity,
a sharp decline in the rate of inventory *m*mmmm& resulted in a decrease
in Industrial production and employment. In ay judgment, this sharp
decline Jiii j<m»SMinff.j^lBffiaa£g (from a seasonally adjusted
lco^y^^/srf-/ay) at2*
**
"
&£/>**fa#fe I*/
mtJ|U| billion In the first quarter to a liquidation rate of J^m
$4 billion in the final quarter) resulted mainly from the pronounced
>
decrease in Inflationary firrtrtf nt1 rmnim^Irfiiiiliiiiiiilll^^
-yrrtiir^ bus*-^--*****
tomf
fs&^s
c&v/d
ft f~

rr
4<*

-42*
**

305
-3 -

to rise as rabidly as . g M m t t ? «*$efcted. S* *Bm of Mm #J#£)KlUt«*
decline in the rate of inventory spending, it is both striking arid ,:
heartening that gross national product in the final quarter of the yearwas above the first quarter level and that final demand grew without
Interruption during the $mm.
We believe that the United States eeeno&y in calendar year 1961 mill

in earlier postwar adjustments and advance to sar&edly higher
levels, Ihis view is supported by the performance of certain important

consumer attitudes and incosaa positions, have rejaained close to record
levels. Personal income has exhibited strength, despite the relatively
'S'SlppJBBff*

W>^w

»w-ifc

*irmk

xmrnmmPOwpplpffliw^f 9HrWWi-*W'W to. 1 ^MJ^P|p

^mmr*mtMp!*&W^&m.wimwW

H B ^ ^ * ^P^pwaPHFS^"

jjfeaeepPt-MPv-

#:I*

<m ~ J ^ - w f c

WP'wIi-'WS—*

has. continued to advance. With this rise In real income and a substantial
increase in. individual savings^ the financial position of consumers has
strengthened significantly. Business capital expenditures, according to
recent surveys, show pMtmgtt*- resistanee to Mm .mt*mm m jwtfit ..
-argins and are expected to decline only slightly in 1 0 1 . total, governroent spending (federal*- State «*A leeai) has Heem rising at a relatively
rapid rate in recent months. Host iaportiyatiy, the inmnt^ry adjustment

•

q. m

K--

ye&t* c*»£/z+y±'eye%ijl*^iy"
l^BP*E8§iii liiSllBteeiik ^jjTshlft toward inventory accumulation would,
of course, add etgaifieaatly to business demand for goods and stimulate
^YPWMWVIVM,

ei^pjuoyiaenw, end incoae.

Another factor pointing t® a resumption of economic growth s^^r
saMMMSiissaHri^pMWie is the pervasive Isspact of the program of monetary
ease, followed wita vigor in recent months by the Federal Beserve %etea*
Aa the aanetary system has received additional funds, liquidity in the
eeonoay has grown apace, as reflected in sharp increases in sank deposits
(particularly U a e end savings deposits) and shares mJmnmm

mi* loan

associations. Such a build-up in liquidity serves both a* a condition
fesr and stimulant to a resumption of economic advance.
fhie view ef the prospects for the economy justifies revenue
estimates reflecting substantial advances in economic activity in calendar
year Ifol, Still, the estimates aey w e U prove te,he conservative. fhe
estimated rise in corporate profits between i960 and..19A is $1 billion.
the estimated rise *n personal income of #|0 billion eoaparee with am
average annual rise in the past five years of alaost $B9 billion.

It is

our opinion that the economic advance which is in prospect for the economy
in 1901 should produce the increases in federal revenues assuaed in the
/\

fiscal year 1902 Budget.
In ad justing federal fiscal policies so as to contribute to the
goal of sustainable economic growth, we should, in ay judgment, rely
primarily on the tremendous built-in flexibility in the Federal budget.

9 this flegibility, as reflected ** Mm

3r.<

operation ©f the so-called «hitilt*ia

stabilisers," coupled with flexibly adainistered Monetary policies, has
consistently provided powerful forces for eeono_ic stability in the
postwar years. As X have emphasised before, any decision to engage in
overt fiscal actions to stimulate the economy during a period of economic
slack should await clear indications m a t such built-in flexibility (along
with expansive monetary policies) are not sufficient to promote resumption
of growth.
The built-in stabilisers have been at work In calendar year XfbQ.
for example, between the first and third quarters of i960, the expenditures and receipts of federal, Stats and local governments on national
income and product account/ are estimated to have shifted from a $3-9 billion surplus (at seasonally adjusted annual rates) to a $1.6 billion
deficit, with the federal Government accounting for most of the shift.
this change represented a total shift towards deficit in the government
income and product account of $5-T billion, and it is probable that a
further move in this direction took place in the final quarter of the
year. This large shift in 19&3, despite the mildness of the economic
adjustment, testifies to the strength of the built-in stabilisers in the
American economy.

(Bote: The Federal Government's surplus or deficit

on national income and product account is not the saae as its surplus or
deficit in the administrative budget or in cash payments to and receipts
from the public, the trend in government surplus or deficit on incoae and
it Is a much more significant and timely measure of changes
j0.the government'a impact on aggregate income and demand than are changes
/

•- -

•=

in the surplus or deficit of the administrative budget.)

Q09

*>€ as the fiscal year 1962 budget assumes a rising level
activity throughout most,#| Mm^m^

It is

surplus (assuming appropriate actions by the Congress, in
jaBes^iPjjris^aa^g^. ^s^f'Spaa

WSJP-a« ii^iW-vpip^^si^pww'w

w ; ^•^•jgyw^Pwi^wePsii* v e ^ is*™^^u^mm^.w-^mmWm'

a"SMIWP*

sp'a' a* TtpaasenaHa-e™a*

vsssw^if

If the economy responds as expected. If the economic advance exceeds
i, the surplus will he appropriately larger. On the other
i, if the economic advance falls short of our expectations, the
fiscal position will move toward deficit. As X have stated several times,
the incurrence of aaafe deficits is not only

A
^ daring periods of pronounced economic slack. The proper goal is to
strive for surpluses in periods of strong business activity sufficient
to more than offset the deficits that may occur in periods of slack*
m mm* mrm*** ««——w— o* a dynamic

&i'i

.•

" position will sfcSlirWW-^ A&Jips

renewed request for removal of the k± percent interest rate ceiling on
issues of Treasury bonds. The incoming administration faces a diffi-

ya
cult problem in

$-90 billion federal debt^. yH-arJlji liiiwin,

# existence of the interest rate ceiling during much of 1959 and i960
effectively blocked the debt extension that is essential to
of better balance in the debt structure. As a result of the Treasury's
inability to extend maturities, the 1 t© 5-year marketable debt
by $17 billion between the end of 195$ and the end of i960 (j

7
• 2 * hiillon to f7l billion), despite the fact m a t this smturlty
already badly over-crowded when the period began. Although the debt
maturing in less than one year, at $75 billion, is perhaps not to© large in
view of the

*s liquidity needs, the fact is that this very short

debt w l H tend to grow larger eat larger, simply as a result of the passage
S3

Of time, m the securities now in the 1 to 5-year sector move closer to
maturity. This would further complicate the already difficult tasks of
debt management and monetary policy, the problem of the 4 percent
interest rate cellist is not a transitory problem; it is a barrier that
must he removed if debt management is to be handled in the best interests
of the American people.
~5
%•-. o

A*0*^,

yLfry********^^^^

\J*<A+ * <"dV dS&tr JA J* fyrtm

^ ^

i" *

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made-from cotton having-* staple-of less than 1-3/16 inches in length, COHB-R
HASTE. LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERvaSADVANCED 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 Italy*
Established
TOTAL QUOTA

Country of Origin

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
C h i n a ......•.••

Egypt
Cuba
Germany
Italy . . . .

1,116,474
239,690
42,782

1,441,152 964,933

21,442

22,747 21,442
14,796
12,853

3,068

75,807 42,7S2

3,068

1«> y~i*-

- •

. .

1
Total Imports
i Established s
Imports1/
i Sept. 20, I960, to % 33-1/3* of : Sept. 20, 1960_
Total Quota ; to Jan* 9« 1961
j, Jan. 9., 1961

•

8,135.
6,544
76,329
21.263

5,482,509
1/ Included in total imports, column 2,
prepared in the Bureau of'Customs-*

11,285

25,443
7.088

1,434,741

1,599,886

1,032,225

30 i

Washing-boil, D. C.

IMMEDIATE RELEASE
THURSDAY. JANUARY 12. lQ6l.

A-1026

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September 20, 19 60 - January 9. 1961
Country of Origin
R/-ypt 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

^9m>259
618,721

Country of Origin

Established Quota

Honduras
Paraguay
Colombia
Iraq
British East Africa ...
Netherlands E. Indies .
Barbados
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
3/0ther French Africa ...
Algeria and Tunisia ...

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, i960 - January 9* 1961
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
1-3/8"
4,565,642

39,590,778
609,648
4,565,642

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

Iirroor

TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE

A-1026

THURSDAY. JANUARY 12. 196l.

Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September 20, 19 60 - January 9. 1961
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

Established Quota

Country of Origin

Honduras ..............
Paraguay
Colombia ..............
Iraq
«
British East Africa ...
8,883,259
Netherlands E. Indies .
618,721
Barbados
l/Other British W. Indies
Nigeria
2/Other 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, I960 - January 9» 1961
Established Quota (Global) - 45,656,420 Lbs.
Staple Length Allocation Imports
I-3/8" or more
39,590,778
1-5/32" or more and under
1-3/8" (Tanguis)
1,500,000
1-1/8" or more and under
1-3/8"
4,565,642

39,590,778
609,648
4,565,642

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a. staple of less than 1-3/16 inches in length, COMBER
¥ASTE, LAP WASTE, SLIVER WASTE, AND ROVING 7/ASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE* Provided, however, th4t not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case- of the following countries? United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italyg
Established
TOTAL QUOTA

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

« .
. 6
e .

« •
. «
a •

. .
e s
. a

. .
• a
.9 .

:
Total Imports
s Established
. Sept. 20, I960, to % -33-1/3% of
: Jan. 9. 1961
% Total Quota

Imports
Sept. 20, I960
to Jan. 9. 1961

,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263

1,116,474
239,690
42,782

1,441,152

964,933

75,807

42,782

21,442

22,747
14,796
12,853

21,442

11,285

25,443
7,088

5,482,509

1,434,741

1,599,886

1/ Included in total imports, column 2,
Prepared in the Bureau of Customs.

3,068

1,032,225

«a.s_tngton# D« C.

Il__DIATE RELEASE

29 7

THURSDAY, JANUARY 12, 196l.

A-1025

PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UNM-TOPACTURSB LEAD AND ZINC CHARGEABLE TO THE G.UOTAS ESTABLISHES
BY PRESIDENTIAL PaOCLAttATION NO. 3257 OF SEPTEMBER 22, If 58
fflJARTERIT QUOTA PERIOD • October I, I960 - December 51, I960
IMPORTS • October I, 1960 - December 31, I960
ITEM 391

ITEM 392
ITEM 394
ITEM 393
jueaa bullion
oiuuoa or base
oass bullion,
cu.1j.10n, s
t
VJ Lead
*
t i6ad in pigs and bars, lead
1
*
s Lead-bearing ores, flue dust,: dro3S, reslalaad lead, sora?
j Zinc-bearing ores ©f all kinds,s Zino ia blooks, pigs, or slabs
8
and asattes
s lead, anti-oaial lead, antis except pyrites containing not s old and worn-out zino, fit
i only to be r©manufactured, zino
8
s aonial scrap lead, type aatal, *
over 3 ^ of gino
dross, and sine ski._iings
*
j all alloys or ooabinations of s
I:Quarterly Quota
s
lead n.s.p.f.
s:_iart3riy „iota
:_i_—;er.ty
Quota.
sQuarterly Quota
t Dutiable. Lead
Iaports ; Dutiable Laad
laoorts : By ael.aht
Isporta 1 Dutiable Zinc
Iaporta
(Pounds)"
(Pounds)
'
(Pounds)
~~
~"~"
(Pounds)
10,080,000
10,080,000
25,680,000
23,680,000
?

Country
of
Production

Australia
Belgian Congo

5,440,000

Belgium and
Luxemburg (total)
Bolivia

5,040,000

Canada

13,440,000

15,440,000

Peru

16,160,000

(6,160,000

On. So. Africa

14,680,000

14,880,000

Yugoslovia
All other foreign
countries (total)

6,560,000

P22PAR2D IN THE BUREAU 0? CUSTOMS

6,560,000

7,520,000

5,441,373

37,840,000

3,600,000

949,752

15,920,000

36,880,000

56,880,000

70,480,000

6,320,000

2,190,758

12,880,000

12,877,950

35,120,000

3,760,000

3,757,431

15,750,000

15,760,000

6,080,000

17,840,000

66,480,000

Italy
M$xioo

5,458,385

6,080,000

TREASURY DEPARTMENT
Washington, D. C«
IMMEDIATE RELEASE

THURSDAY, JANUARY 12, 196l.

A-1025

PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BT PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, 1958

fx3
CO

QUARTERLY QUOTA PERIOD • October I, I960 - December 31, I960
IMPORTS - October 1, I960 - December 31, I960
ITEM 392
ITEM 393
ITEM 394
: Lead bullion or base bullion, :
t lead in pigs and bars, lead
t
s
Lead-bearing ores, flue dust,g dross, reolaimad lead, scrap
: Zino-bearing ores of all kinds,; Zino in blooks, pigs, or slabs;
and nattes
: lead, anti&onlal lead, antij except pyrites containing not : old and -worn-out zino, fit
* only to be reaanufactured, zino
: aonial scrap lead, type aetal, :
over yfr of zino
:
dross, and zino skimmings
t all alloys or ooabinations of x
t:~C_artaVly^-ilead
j:Quarterly Quota
Quarterly —iota
ota n.s.p.f.
iQuarterly Quota
Iaports ; By Wel^t
i Dutiable Lead
Imports : Dutiable Lead
Daporta 1 Dutiable Zinc
Iaports
^PoundTJ
,
(pounds)
~~""
{Pounds]
(Pounds)
ITEM

Country
of
Production

Australia

10,080,000

391

10,080,000

23,680,000 23,680,000

Belgian Congo

5,440,000

Belgium and
Luxemburg (total)
Bolivia

5,040,000

Canada,

13,440,000

15,440,000

15,920,000

•5,920,000

66,480,000

Italy
Mexioo
Peru

16,160,000

On. So. Afrioa

14,880,000

Tugoslovia
All other foreign
countries (total)

6,560,000

PREPARED IN THE BUREAU OF CUSTOMS

6,560,000

5,458,385

7,520,000

3,441,373

37,840,000

57,840,000

3,600,000

949,752

36,880,000

70,480,000

6,320,000

2,190,758

12,880,000

12,877,950

35,120,000

35,12®, 000

3,760,000

3,757,431

15,760,000

6,080,000

17,840,000

6,080,000

a
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.
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000

"-• V> vj

TREASURY DEPARTMENT
Washington
M E D I A T E RELEASE
THURSDAY, JANUARY 12, 196l,

A-1023

The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, I960, to
December 31, I960, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of
1955:

Commodity

Established Annual
Quota Quantity

:
Unit
; Imports
5
of
2
as of
; Quantity ; Dec. 31. I960
Gross

jjUuXiOns.............

765,000

oigars...a....«.«»..

180,000,000

Number

Coconut oil...

403,200,000

Pound

118,988,470

LfOrdage ••>«......<>...

6,000,000

Pound

4,703,235

xoDacco.»....««.....

5,850,000

Pound

6,495,862

306,469
3,721,702

7Q9

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASER

A-1023

THURSDAY, JANUARY 12, 196l/

Commodity

Buttons

Imports
as of
Dec. 31, I960

Established Annual
Quota Quantity
765,000

Gross

306,469

Cigars•••••<

180,000,000

Number

3,721,702

Coconut oil.

403,200,000

Pound

118,988,470

Cordage.....

6,000,000

Pound

4,703,235

Tobacco.....

5,850,000

Pound

6,495,862

2 -

Commodity

Period and Quantity

: Unit
:
Imports
: of
:
as of
:Quantitv: Dec. 31. 1960

>lute Quotas
mts, shelled, unshelled,
inched, salted, prepared or
^served (incl. roasted peais but not peanut butter)..,
rye flour, and rye meal,

:er substitutes, including
:ter oil, containing 45% or
re butterfat
(
I Oil

iports through January 9, 1961.

12 mos. from
Aug. 1, 1960
July 1, 1960June 30, 1961
Canada
Other Countries

Calendar Year 1960
Calendar Year 1961
Nov. 1, 1960Jan. 31, 1961
Argentina
Paraguay
Other Countries

1,709,000 Pound

5,000*

140,733,957 Pound
2,872,122 Pound

122,233,935*

1,200,000
1,200,000

Pound
Pound

1,199,952
Quota Filled

5,525,000
741,000
234,000

Pound
Pound
Pound

2,239,333*
Quota Filled
224,812*

_. \J.
TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE

A-1022

THURSDAY, JANUARY 12, 1961

The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to December 3 1 , 1960, inclusive, as follows:

Commodity

Period and Quantity

Unit :
Imports
of
:
as of
Quantity; Dec. 31, 1960

Tariff-Rate Quotas:
Cream, fresh or sour Calendar Year 1,500,000 Gallon
Whole milk, fresh or sour Calendar Year 3,000,000 Gallon
Cattle, 700 lbs. or more each Oct. 1, 1960(other than dairy cows)
Dec. 3 1 , I960

120,000

Head

Cattle less than 200 lbs. each.... 12 mos. from
April 1, 1960

200,000

Head

33,O0(

Pound

Quota Fillet

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

Calendar Year

36,533,173

50,266,02!

Tuna fish.. Calendar Year 53,448,330 Pound
White or Irish potatoes:
Certified seed
Other....

12 mos. from
Sept. 15, I960

18,644

114,000,000
36,000,000

Pound
Pound

27,863,051
2,225,86!

80,000,000

Pound

1,441

Peanut oil 12 mos. from
July 1, 1960
Walnuts. Calendar Year 5,000,000 Pound

Quota Fille

Woolen fabrics Calendar Year 13,500,000 Pound

Quota Fille

Woolen fabrics Pres. Proc. 3285 and 3317
(T. D s . 54845 and 54955)
Stainless steel table flatware
(table knives, table forks,
table spoons)

March 7«
- 31» 1 9 6 °

Dec

Nov. 1, 1960Oct. 3 1 , 1961

350,000

69,000,000

Pound

Pieces

Quota Fille

67,091.4C

Cover)

2 9.,

TREASURY DEPARTMENT
Washington, D, C.
[EDIATE RELEASE

A-1022

URSDAY, JANUARY 12, 196l

The Bureau of Customs announced today preliminary figures showing the imports for
isumption of the commodities listed below within quota limitations from the beginning
the quota periods to December 31, 1960, inclusive, as follows:

Commodity

Period and Quantity

Imports
:
Unit :
as of
:
of
:
: Quantity: Dec. 31, 1960

iff*Rate Quotas:
am, fresh or sour... Calendar Year 1,500,000 Gallon

128

le milk, fresh or sour......... Calendar Year 3,000,000 Gallon

239

tie, 700 lbs. or more each Oct. 1, 1960ther than dairy cows)...
Dec. 31, 1960

120,000 Head

18,644

tie less than 200 lbs. each,.,. 12 mos. from
April 1, 1960

200,000 Head

33,006

h, fresh or frozen, filleted,
., cod, haddock, hake, polk, cusk, and rosefish.......... Calendar Year

36,533,173

Pound

50,266,025

a fish,.... Calendar Year 53,448,330 Pound
te or Irish potatoes:
rtified seed..
her
,

,
.•

12 mos. from
Sept. 15, I960

Quota Filled

114,000,000 Pound
36,000,000 Pound

27,863,050
2,225,862

80,000,000 Pound

1,440

lut oil , 12 mos. from
July 1, 1960
iuts, Calendar Year 5,000,000 Pound

Quota Filled

len fabrics,... Calendar Year 13,500,000 Pound

Quota Filled

Len fabrics 2s. Proc. 3285 and 3317
Ds. 54845 and 54955)
Lnless steel table flatware
ible knives, table forks,
ible spoons)

March 7* 31 > 1 9 6 °

Dec

Nov. 1, 1960Oct. 31, 1961

350,000 Pound

69,000,000

Pieces

Quota Filled

67,091,405

(over)

f Q

- 2-

Commodity

Period and Quantity

: Unit
;
Impdrts
as of
; of
:
: Quantity; Dec. 31. 1960

solute Quotas
muts, shelled, unshelled,
Lanched, salted, prepared or
reserved (incl. roasted peaits but not peanut butter)..,
:, rye flour, and rye meal,

:ter substitutes, including
itter oil, containing 45% or
)re butterfat
,
ig Oil

Imports through January 9, 1961.

12 mos. from
Aug. 1, 1960
July 1, 1960June 30, 1961
Canada
Other Countries

Calendar Year 1960
Calendar Year 1961
Nov. 1, 1960Jan. 31, 1961
Argentina
Paraguay
Other Countries

1,709,000

Pound

5,000*

140,733,957
2,872,122

Pound
Pound

122,233,935*

1,200,000
1,200,000

Pound
Pound

1,199,952
Quota Filled

5,525,000
741,000
234,000

Pound
Pound
Pound

2,239,333*
Quota Filled
224,812*

TREASURY DEPARTMENT

OQQ

WASHINGTON. D.C

RELEASE A . M . NEWSPAPERS, Thursday, January 12, 196l.

A-1021

The Treasury Department announced last evening that the tenders for $1,500,OQ(L
or thereabouts, of 365-day Treasury bills to be dated January lfj>, 196l, and to matur
January 15, 1962, which were offered on January 5, were opened at the Federal Reser?
Banks on January 11.
The details of this issue are as follows s
Total applied for - $3,076,1*31,000
Total accepted
- 1,500,095,000

Range of accepted competitive bids:

(includes $11*6,681,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
(Excepting one tender of fi*00,000)

High
Low

- 97• 318 Equivalent rate of discount approx. 2,645$ per anna
- 97.262
"
n
tt
n
n
2.700$ " »

Average

- 97.284

2.679$ ,n

(23 percent of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied For

Total
Accepted

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

$
43,099,000
2,173,884,000
3U,200,000
139,812,000
15,792,000
4l*,5l7,000
279,1*10,000
26,921*, 000
18,062,000
39,031,000
37,1*50,000
22i*,250,000

$
22,21*9,000
1,11*5,224,000
1*,200,000
1*3,212,000
10,791,000
27,332,000
137,220,000
23,824,000
5,312,000
22,031,000
10,450,000
48,250,000

$3,076,1*31,000

$1,500,095,000

TOTAL

1/ On a coupon issue of the same length and for the same amount invested, the return
these bills would provide a yield of 2.77$. Interest rates on bills are quoted
terms of bank discount with the return related to the face amount of the bill6
able at maturity rather than the amount invested and their length in actual n*
of days related to a 360-day year. In contrast, yields on certificates, notesj
bonds are computed in terms of interest on the amount invested, and relate the
ber of days remaining in an interest payment period to the actual number of da]
the period, with semiannual compounding if more than one coupon period is invo3

_._«.„*. :i:.yi4.ri.^S? thursday, iJanugrv_.._U_..1?__L».
The rreasury Lepertnent announced last evening tfeat tfes fcoadsre for #1,500,000,000,
' thereabouts, of 3Q$HS&y Treasury bilir to be dated Jmmmrj 1>, 196l, and to matssre
nuary 15, 19Q2, which were r-ffared SM January 5, ware opener
-serve
nks on January 11,
The details of Vssue &r^ as followsi
Total •

- $3,0?M31,<

Total a

- 1,500,0'

larr© of accepted competitive bidst
Low

- 97.31
- 97.26?

Averare

- 97.1

(includes '
>0 entered
noncompetitive basis and accented in
full at the average price shown bslov)
excepting on© tender o

valent rate of discount
f
•
*
*f
n

• • at

2.700S «

I •

(23 percent of the asoouni bid for at the low price wags accepted;
ml esenrs
Met
M«»»-...I • ninmii 11— i

•al

Applied For
in

Aecepte_

—•»

?,000
2,173,IS1*,0
3!i,20Q,^
139, Ht*<
15,792,0.

BOStOD

- 22,21$,l,l^,22ii,uv^
l*,2U3,OuO
1*3,212,000
%B9f9%^m
IT,311,000
137,5?2UW
23,
£*31i,
Il,63l»Q00
10,

•rk
Fhiladelr>
Cleveland
"ietworn*
,&?*$
Atlanta
27°,iac,ooo
Chicago
>,9*k,ooe
18,062,^
$$. Loiiis
,031,©)
^irmearol
37, .150,0,
^"s City
$?k»2yG,Q0Q
t*llM
tl,50G,oyi6,iy
Francisco
i a coupon Issue of the same lengt?
• sane amount invested, Mm return on
theft* bill? wonti provide a fitiM of 2,77%. Interest rates on bills are qoottd in
terr.F of hmvfc discount fit* the* return relatsd to tb* face amount of tiie bills payable at -aturity M h S # than tfca I
inmMtsd and tn©ir length in aotual sunbsr
of
i to m J(50-4a; r w « In contract, yields on csrtlfieatss, notes, and
bonds are c-routed 1« terms of Interest on the s»ottnt iisrested, and relate the number of day* repaid In? ir> an interest payseSBfe period to the actual noabsr ot days in
jjrlcdj wttfc eel lanmal co^poif mors tfeott one coupon period Is involved.

- 2 4-V, ^^-diately after the closing hour, tenders will be opened at
rue 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 villi 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
October 20, i960, (91 days remaining until maturity date on
April 20, 1961)
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 January 19, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 19, 1961, Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 195*1-. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections k5k (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 their issue. Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.

TREASURY DEPARTMENT

98b

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Wednesday, January 11, 1961.

A-1020

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 January 19,1961, in the amount of
$1,401,252,000, as follows:
91-day bills (to maturity date) to be issued January 19, 196l,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated October 20,19o0, and to
mature April 20, 1961, originally issued in the amount of
$4-01,065,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $400,000,000, or thereabouts, to be dated
January 19, 19&1, and to mature July 20, 1961.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value) . /,
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, January 16, 196l„ 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.

9^5
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4:00 P.M., EST
Wednesday, January 11, 1961
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 January 19, 1961

, in the amount

®E
of $ 1,1*01,252,000 , as follows:
91 -day bills (to maturity date) to be issued January 19, 1961

in the amount of $ 1,100,000,000 , or thereabouts, representing an additional amount of bills dated October 20, I960 ,
and to mature April 20, 1961

, originally issued in the

amount of $ 401,065,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 400,000,000 , or thereabouts, to be dated

"TddcT ^__f
January 19, 196l

5_EJ

, and to mature

July 20, 1961

^?T

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 amo
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 (maturi
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, January 16, 1961 .
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

- 2-

2
decimals, e. g., 99.925. Fractions may not be used.

It is urged that tenders be

cept for their own account. Tenders will be received without deposit from incorpo-

rated banks and trust companies and from responsible and recognized dealers in inv

ting tenders will be advised of the acceptance or rejection thereof. The Secretary

of the Treasury expressly reserves the right to accept or reject any or all tender

in whole or in part, and his action in any such respect shall be final. Subject to

these reservations, noncompetitive tenders for $200,000 or less for the additional
bills dated October 20, I960 , ( 91 days remaining until maturity date on
April 20, 1961

) 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 January 19, 1961 , in cash or

other immediately available funds or in a like face amount of Treasury bills matur
ing January 19, 1961 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 exemxifeksk^ 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 subjec

to estate, inheritance, gift or other excise taxes, whether Federal or State, but

are exempt from all taxation now or hereadfter 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 inter

Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amou
of discount at which bills issued hereunder are sold is not considered to accrue
until such bills are sold, redeemed or otherwise disposed of, and such bills are
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in his

income tax return only the difference between the price paid for such bills, whet

on original issue or on subsequent purchase, and the amount actually received eit
upon sale or redemption at maturity during the taxable year for which the return
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT

h_m_t-iia«it—w—*i««__'i^_ra_^

WASHINGTON, D.C
RELEASE A.M. NEWSPAPERS,
Wednesday, January 11, 1961,

A-1019

Treasury Secretary Anderson and Postmaster General Summerfield
announced today that the Treasury's electronic facilities used in the
payment and reconciliation of Government checks here in Washington
will be expanded to include the processing of about 275,000,000 postal
money orders a year. Combining these two functions will save the
Government about $650,000 in cost annually after the changeover is
completed.
^
j is capable
._ paying and
The electronic system in the Treasury
of
c
day.
reconciling over 3,000,000 checks and money orders each working
•
The decision to bring these two comparable functions together
followed a study during the past year by the Treasury and Post Office
Departments. Both Secretary Anderson and Postmaster General Summerfield
characterized the decision as an outstanding example of how two Government agencies can work cooperatively together towards a common objective
to achieve savings and improved services in the conduct of Government
operations.
Conversion to the new system will require considerable advance
work and the rental of additional specialized equipment before the new
system can be placed in operation. The estimated savings takes into
account the cost of this additional equipment. It is estimated that
the new system will become operative in January 1962 and will require
about a year to become fully effective.
Within the next twenty-four months, it is expected that use of
electronic equipment will cause a net reduction of about 200 employees
in the Post Office Department staff that is now processing the money
orders in the audit office at Kansas City, Missouri.
It is expected that much of the reduction over the next 24 months
will be achieved through normal attrition and transfers to continuing
Government functions in the Kansas City area. Postmaster General
Summerfield stressed that every effort would be made to assist the remaining employees in finding suitable employment.
The new system will not affect individuals, post offices, or banks
in the issuance and handling of money orders. "Data Processing" by the
electronic computers will produce most of the economies by rendering
unnecessary the recording and auditing procedures now followed by the
Post Office Department in paying, verifying, and reconciling money
orders.
Under the new system, data concerning money orders issued, such as
serial numbers and amounts, will be "fed" into the computer. When a
money order is received for payment it will go through the computer and
will be either verified or rejected as incorrect. Over 1,000,000 money
orders a day will be handled under the new system. The machine will
provide information at any time on money orders paid and outstanding.
This will simplify the reconciliation of the accounts of over 35>000
postmasters and will provide more timely information for the adjudication of claims relating to stolen, destroyed, and

-. u._

yea mmm

»GE MBSR

ti&s

_, „

HggjBAy MQBN-SG, JSMRI&1Y U# 19& H~ - ~ /' <^7/'
Treasury Secretary Anderson and Postmaster General Summerf ield
announced today that the Treasury's electronic facilities used In the
payment and reconciliation of Government checks hero in Washington
will be espondeS to inolu&e the processing of about £75,000,000 postal
money orders a year. Combining these two functions will save the
Government about $650,000 in cost annually after the changeover la
completed.
the electronic system in the troas^ry is capable of paying and
reconciling over 3,000,000 eheofca and money writers each wording day.
The decision to bring these two comparable functions together
followed a study during th# past year by the Tnwsury and foot Oft ice
Bepartaents. Both Secretary Anderson sad Post-aster General gu-sserfield
characterized the decision as an outstanding example of how two Government agencies can work cooperatively together towards a common objective
to aehieve savings and Improved services in the conduct of Government
operations.
Conversion to the new system will require oo-sidermble advance
work ant the- rental of additional specialized equipment before the new
system can be placed in operation. The estimated savings takes into
account the cost of this additional equipment. It is estimated that
the new system will become operative in January 1962 and will require
afeout a ymmr tofeeeaaefully effective.
Within the next twenty-four months, it is expected that use of
electronic equipment will cause a net reduction of about 200 employees
in the Post Office Department staff that is now processing the money
orders in the audit -office at Kansas City, Missouri.
ft is expected that much of the reduction over the next 2k months
will be aohioved through normal attrition and transfers to continuing
Government functions in the Kansas City area* postmaster General
8u_m©rfield stressed that every effort would be made to assist the remaining employees in finding suitable employment.
The new system will not affect individuals, post offices, or banks
in the issuance and handling of money orders. "Sata Processing" by the
electronic eo-puters **lli produce most of the tconoiaies b^ rendering
unnecessary the re-cording and auditing procedures now followed by Mm
Post Office Department in paying, verifying, ant reconciling money
orders.
tteder tho hew system, data concerning money orders issued, such as
serial numbers sad amounts, will be Mfed!* into the co-piter. When a
money order is received for payment It will go through the computer and

will bo either verified or rejected as incorrect. Qvmr 1,000,000 money
orders a day will be handled under the new system. The machine will
provide iaformtion at any fciaa on money orders paid and outstanding.
fhis w i n simplify the reconciliation of the accounts of over 55,000
postmasters sat will provide more timely information for the adjudication of claims relating to stolen, destroyed., and lost money orders.

GFStickneyrmaf 1-9-61

TREASURY DEPARTME
X___32____™™E__£_»_»™B»S_^

W A S H I N G T O N , D.C.
A-1018

RELEASE A. M. NEWSPAPERS, Tuesday, January 10, l?6l.

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 October 13, 196
and the other series to be dated January 12, 1961, which were offered on January k, wer
opened at the Federal Reserve Banks on January 9. Tenders were invited for $1,000,000,
or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills.
The details of the two series are as follows:
RAN3E OF ACCEPTED
COMPETITIVE BIDS?

High
Low
Average

91-day Treasury bills
maturing April 13, 196l
Approx. Equiv.
Price
Annual Rate

182-day Treasury bills
maturing July 13, 196l
Approx. Equiv.
Price
Annual Rate

99.1*08 a/
99.393
99.397

98.710 b/
98.676
98.681;

2.3u2$
2.1*01$
2.385$ 1/

2.552$
2.619$
2.602$ 1/

a/ Excepting four tenders totaling $1,152,000
b/ Excepting one tender of $25,000
0*2 percent of the amount of 91-day bills bid for at the low price was accepted
10 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TEM3ERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
$
26,590,000
1,389,586,000
33,01*7,000

la,358,ooo
15,689,000
26,1*12,000
200,51*8,000
36,071,000
13,026,000
38,572,000
20,1*27,000
67,81*2,000
$1,909,168,000

Accepted
$
16,590,000
630,736,000
17,517,000
38,358,000
15,689,000
25,1*60,000
113,1*08,000
32,691,000
8,026,000
29,1*32,000
20,1*27,000
51,702,000
$1,000,036,000

t Applied For
: $ 6,770,000
s
800,605,000
:
8,782,000
:
27,1*99,000
5
2,318,000
:
5,898,000
*
73,930,000
:
5,l47li,000
:
1*,355,000
:
ll*,589,000
s
3,173,000
:
35,193,000
y $988,586,000

Accented
$ 6,770,000
372,705,000
3,602,000
27,1*99,000
2,318,000
5,698,000
3l*,636,000
5,li7l*,000
1,855,000
12,1*89,000
3,173,000
23,793,000
$500,012,000 d/

c/ Includes $258,503,000 noncompetitive tenders accepted at the average price of 99*591
37 Includes $52,083,000 noncompetitive tenders accepted at the average price of 98.681*
1/ On a coupon issue of the same length and for the same amount invested, the return 01
these bills would provide yields of 2.1*3$, for the 91-day bills, and 2.67$, for tb
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather thar
the amount invested and their length in actual number of days related to a 360-daj
year. In contrast, yields on certificates, notes, and bonds are computed in term!
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semiannui
compounding if more than one coupon period is involved

GLC:
%ZA8B A. x. nnaPAreM^ fuesdaar* January 10, lff6l,

-fc'/p-

the Traaaury Ifepartnaafe aaaoaiiBad last wraaiflg H m t th« taadart for two series of
sasury billa, one aerie* to be m additional immm of Mm bills dated October 13, I960,
d tta® other series to mm data* Smmmrf 12, 1961, «§*ieh wore offered ©a ^anuarjr If, ware
«nsi at the Fadteml Reserve BaiAta an Mmmef 9. ttodara were Invited for fl,000,a00,00C
> tbareabout®, of 91«day bills and for HfeOfGOO,0QQ# or thereabout®, of 182-day bills.
a details of the tiro ®«*ioa art m follows
,»£ IF ACCSPTSD
102-day treasury bill®
JttHftgr t w a » r y billa
IFfTXVItV B H » i
appros:. Bquir.
Fflfrf,
anqaal lata
,ftftn_ » „. ft^Jttt-,

w*wawi i^*ua« >j*y_

High
_ow
Awago
y
y
m
10

99-MB y
n.m '

».no |/
2*3S|jg 3/

*.6ltf
2,602$ y

ft*3f?

£_otpii_§ four taadaw totaling fl, 1452,00®
Biaapii-g omm tauter of |SS,000
portent of Mm amufc of ^1-day billa tti for at %h# %m priaa was aceapiad
percent of ifee anoumt of 182-day bills b!4 for at Mm low price was aooapted

ML TB1IDBR8 AFKJQD It» a® 4€aSffS» If WIBB8A1, Sffiifl BISfllCTSi
Boats®

i*d fw
lM90f0®@
1»3#»^»0»
33»okT»ooo
ta»3$8,ooo
lS,6Sf,O0O
26,lil2,OQ0
2G0,5ti8,Qe©
36,071,000
13,§26,0§O

Ammpto*

I 6,770*000
f 6,770,000
,000
37t,70$,000
eoo,*o$,ooo
630,73**000
3,602,000
8,7§2,@O0
17,517*000
27,1*99,00©
&7,ii99,ooo
3S,35i,000
2,311,00©
2,316,000
iiot»Olsd
• 15,689,000
5,698,000
5fa°SsOoo
Atlanta
2$,i§60,000
3«,636,O0O
73,930,000
Chicane
H3,fao6,ooo
5,1*71,000
S,Ii7k,000
it, Louie
32,691,000
1,10,000
«,38 f 0Q0
Hi-^aapolls
8,026,000
12,ii89,000
ti^tf^ooo
f&naaa City
2^,ii32,CK»
3,173,000
3B
m>m®
3,173,^0
Ballaa
9
20,1*27,000
&.tt_jgS
San frmnoisoo
m.JMShm
m9k27>m® 11,000,036,000 y |986,SW
TOKatS
9 O0O
$5GO,O18,0Q0
&*&>,*»,
Iwludss #258,503,000
a©«o»potitiv®
tenders
aeeapted
at
the
araragft
price
of 99.391
#1,909,168,00©
fneiadas 152,083,000 maaanpatl&lv* taatfar* mmp%m4 at the avaraga prlaa of 98.601*
On a aavpoii issm® of the ®mm lanssth and for'Mm aaaa amount invested, the return on
those bills would piwrlds yields of 2.1*3$, for Mm 91-day bills, and 2.6?H, for the
182-day bill®, X*ta*aat rata® on billa are quoted is towns of bask diaoouut with
the return related to thm tmm amount of the bills payable at maturity rather than
tfea aaaant iwraatad and thair lengtis in actual .]^fe«#r of days- related to a 360-day
ymmr. In eontraat, yi@ld« on certificate®, n®tea, anei hoada are computed in tersse
of lutoreat on Mm amaunt iavaatad, and relate the nuabar of dmy® fo^aining in an
lntaraat pajwan* period to the actual s«bor of ^>y® in the period, with ae-ianms.al
c«Rpatt8ding if morm tban one coupon period la involved.

lore
MUMp-ia
Olavtlaad

fi^S^iS©

CORRECTED COPY

TREASURY DEPARTMENT
WASHINGTON, D.C.

N^*__^

CORRECTED COPY
IMMEDIATE RELEASE,
Friday, January 6, 1961.

A-1017

Robert B. Anderson, Secretary of the Treasury, and
Emilio Donato del Carril, Ambassador of Argentina, today
signed a one-year extension of the $50,000,000 Exchange
Agreement between the United States Treasury and the
Government and Central Bank of Argentina, which had
been in force during i960.
The agreement is designed to assist Argentina in
Its continuing efforts to promote economic stability
and freedom in its trade and exchange system.

Exchange

operations on the part of the Argentine authorities will
be for the purpose of maintaining an orderly foreign
exchange system.
Under the Treasury Exchange Agreement, Argentina may
request the United States Exchange Stabilization Fund to
purchase Argentine pesos. Any pesos acquired by the
United States Treasury would subsequently be repurchased
by Argentina with dollars.
With the purpose of assisting the Argentine Government
in continuing Its stabilization efforts, by providing
currencies that may be used for the maintenance of an
orderly exchange market, the International Monetary Fund
on December 9, I960, announced a standby arrangement with
Argentina in the amount of $100 million.
0O0

5Z2

&*&***.. 1, And^Bou^

/AsJ**~,

^fLHLl2/3°

$&mmtm%tj of £he Treasury, and

B_dll0-liiuito d*l Ounrll, ^ * a s a a i » of Argaittiiia, today sipaMi
a cm-year m t m a l o n of th* $SO,MO,'000fetuA-Mi*'% r » » » s f "
batamm tfo* llstitad Otataa tHMMwry mmi tha (fcwan-iMit ami
Central Bank of Jfegftntliia, w h l ^ had b**n la fore* during

IfJ^l
fha agramaiit it dafignad to assist Argentina la its
eosatlmsifsg efforts m promts*' #ii€mi»i© it^ility and frtadm
£m ieo trad* mid m®hm>m

•!•*•»•

Wmgkmm®

@$mmttmm

tha fart of tha -Jttganaim mxthmritiMB will fee for'tha pur^aaa
of ^^istiii^sf-:am <md*«%]fcfar*i$a mchaag* ayatmu
(fed** tha treasury Isehansa %raamstt,. A*§aftt£.M.my
rafiiaat tha fjsiited States EKchaags Stabilisation Fund to
furefeaaa ArfOfttiiia pes»oa. Any faaos aaqpiimd by'th* United
Stataa frtaittxy would oubaaqu*atly bo t^ri?^fe«iii by. Argaatlna
with dollars.
With til* purpoaa of Assisting th* Argaatiaa Ctovarnmat in
eontltmiiig Its stabilisation offort*, by providing. eurranaias
that ®mf hm usad for the mlnt*&ftae* of an orderly agchang*
Mrkat, th* Intarnationai Iteiatary Fund on M e m b e r 9, i960,
mmnaufiead * standby arrangaswtnt with Argentina in th* «aoont
of $100 million.

- 2 :pressly reserves the right to accept or reject any or all tenders, in
lole or in part, and his action in any such respect shall be final.
ibject to these reservations, noncompetitive tenders for $400,000 or
iss without stated price from any one bidder will be accepted in full
; the average price (in three decimals) of accepted competitive bids.
tttlement for accepted tenders in accordance with the bids must be
ide or completed at the Federal Reserve Bank on January 16, 1961, in
ish or other immediately available funds or in a like face amount of
'easury bills maturing January 15, 1961. Cash and exchange tenders
.11 receive equal treatment. Cash adjustments will be made for
.fferences between the par value of maturing bills accepted in
[change and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain
'om the sale or other disposition of the bills, does not have any
cemption, as such, and loss from the sale or other disposition of
?easury bills does not have any special treatment, as such, under the
iternal Revenue Code of 1954. The bills are subject to estate,
lheritance, gift or other excise taxes, whether Federal or State, but
?e exempt from all taxation now or hereafter imposed on the principal
? Interest thereof by any State, or any of the possessions of the
lited States, or by any local taxing authority. For purposes of
ixatlon the amount of discount at which Treasury bills are originally
>ld by the United States is considered to be interest. Under
actions 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the
aount of discount at which bills issued hereunder are sold Is not
msidered to accrue until such bills are sold, redeemed or otherwise
Lsposed of, and such bills are excluded from consideration as capital
ssets. Accordingly, the owner of Treasury bills (other than life
isurance companies) issued hereunder need include in his income tax
iturn only the difference between the price paid for such bills,
lether on original Issue or on subsequent purchase, and the amount
jtually received either upon sale or redemption at maturity during the
ixable year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
describe the terms of the Treasury bills and govern the conditions
* their issue. Copies of the circular
may be obtained from any
0O0
sderal Reserve Bank or Branch.

TREASURY DEPARTMENT
Mki»-vi • - r » • — • SAtf^r1_U'?,^JW«l^;.'i-gS!.Jt—.--tig-J j L J _ j a » j . i i 8 U ! U _ . - u > J j i < i u » u . . — I U - U L

at.»JJJJ..UI-I«IMJ

•

U . n _ m u u _ — I — — — — — —

WASHINGTON, D.C.

IMMEDIATE RELEASE,
Thursday, January 5* I96l.

-k-1016

The Treasury Department, by this public notice,, invites tenders fo:
$1,500,000,000, or thereabouts, of 365-day Treasury bills, for cash and
in exchange for Treasury bills maturing January 15* 196l, in the
amount of $1,503,740,000, to be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be dated January 15* 196l, and will mature
January 15, 1962, when the face amount will be payable without
interest. They will be Issued in bearer form only, and in denomination;
of $1,000, $5*000, $10,000, $100,000, $500,000 and $1,000,600
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up
to the closing hour, one-thirty o!clock p.m., Eastern Standard time,
Wednesday, January 11, 1961. 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. (Notwithstanding
the fact that these bills will run for 365 days, the discount rate
will be computed on a bank discount basis of 360 days, as is currently
the practice on all issues of Treasury bills.) 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 responsibl
and recognized dealers in investment securities. Tenders from others
must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an Incorporated bank or trust company.
All bidders are required to agree not to purchase or to sell, or
to make any agreements with respect to the purchase or sale or other
disposition of any bills of this issue, until after one-thirty o'clock
p.m., Eastern Standard time, Wednesday, January 11, 1961.
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

/ '1

r ~

TREASURY DEPARTMENT
Washington

^. yyy~ -</"
"•^- >

IMMEDIATE RELEASE, 4:00 PM, EST,
i^^:*^:i^f^^OK^^:*>ii':#ii:<'>iv:«t

-~"

(•

•yy
C

Thursday, January 5, 1961
The Treasury Department, by this public notice, invites tenders for
$1,500,000,000 , or thereabouts, of 565 -day Treasury bills, for cash and in
exchange for Treasury hills maturing January 15. 1961 >

in the

amount of

$1.505,740.000 > *o be issued on a discount "basis under competitive and noncompetitive "bidding as hereinafter provided.

The bills of this series will be dated

January 15. 1961 , and will mature January 15. 1962 , when the face
amount will be payable without interest. They will be issued in bearer form only,

and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the clos-

ing hour, one-thirty o'clock p.m., Eastern Standard time, Wednesday. January 11. 1
&_&
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 dec(Notwithstanding the fact that these bills will rurT
imals, 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 investmen

securities. Tenders from others must be accompanied by payment of 2 percent of the
for 565 days, the discount rate will be computed on a bank discount basis
of 560 days, as is currently the practice on all issues of Treasury bills.)

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

ting tenders will be advised of the acceptance or rejection thereof. The Secretary
of the Treasury expressly reserves the right to accept or reject any or all 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 withou
#_$

stated price from any one bidder will be accepted in full at the average price (in
three decimals) of accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal Reserve Bank on
January 16, 1961

;

in cash or other immediately available funds or in a like

5$2Q£x
face amount of Treasury bills maturing

January 15, 1961
Gash and exchange
X^2k
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
All bidders are required to agree not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other disposition of any bills
of this issue, until after one-thirty o'clock p.m., Eastern Standard time, Wednesday, January 11, 1961.

- 5 -

Treasury bills are originally sold by the United States is considered to be in-

terest. 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 considere

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 in

clude in his income tax return only the difference between the price paid for su

bills, whether on original issue or on subsequent purchase, and the amount actual
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 *'* ^-^iately after the closing hour, tenders will be opened at
zne 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
October 13, I960, (91 days remaining until maturity date on
April 13, 1961)
and noncompetitive tenders for $100,000
or less for the 182-day bills without stated orice 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 January 12, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 12, 1961. 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 ara
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 their Issue. Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.

TREASURY DEPARTMENT

27:

WASHINGTON, D.C

IMMEDIATE RELEASE,
Wednesday, January 4, 1961.

A-1015

The Treasury Department, by this public notice, invites tendei
f o r ^ w o ser*iss of Treasury bills to the aggregate amount of
$1,500,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing January 12, 196l, in the amount of
$1,500,493,000, as follows:
91 -day bills (to maturity date) to be issued January 12, 1961
in the amount of $1,000,000,000, or thereabouts, representing an
additional amount of bills dated October 13, I960, and to
mature April 13, 1961, originally issued in the amount of
$500,480,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
Janua.ry 12, 1961, and to mature July 13, 1961.
The bills of both series will be issued on a discount basis urn
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 (maturit;
value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, January 9, 196l . 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 nol
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 suta!
tenders except for their own account. Tenders will be received
without deposit from Incorporated banks and trust companies and fror
responsible and recognized 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 bai
or trust company.

/ » I

TREASURY DEPARTMENT
WashingtonRELEASE A. M. NEWSPAPERS, 1;00 PM, EPT^ A^-~JQ\ y~
Wednesday, January 4, 1961
\
2?-3_<

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

<p_jT
cash and in exchange for Treasury bills maturing
of

January 12, 1961 , in the amount

$1.500.495.000 , as follows:
xsadt

91 -day bills (to maturity date) to be issued January 12

-____.

1961 >

$&£

in the amount of $ 1,000,000,000 , or thereabouts, representing an additional amount of bills dated October 15, 1960 ,
and to mature

April 15, 1961

, originally issued in the

amount of $ 500.480,000 , *he additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated

&&&£

1__S
January 12. 1961

, and to mature

julv 15f 1961

•

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 amo
will be payable without interest. They will be issued in bearer form only, and in

pc_J
Tenders will not be received at the Treasury Department, Washington.

Each tender

must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three

- 2i... <J _>•

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 inv

ting tenders will be advised of the acceptance or rejection thereof. The Secretary

of the Treasury expressly reserves the right to accept or reject any or all tender

in whole or in part, and his action in any such respect shall be final. Subject to

these reservations, noncompetitive tenders for $200,000 or less for the additional
bills dated October 15, 1960 , ( 91 days remaining until maturity date on

y_k
April 15. 1961

y_5

TEST

) an^L noncompetitive tenders for $ 100,000 or less for the

m±

182 -day bills without stated price from any one bidder will be accepted in full

"T_§5T
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 January 12, 1961 , in cash or

other immediately available funds or in a like face amount of Treasury bills matur
ing January 12. 1961 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

m 5 •

-' -* «-

^B_xxx5_-_aaKH
from the sale or other disposition of Treasury bills does not have any special

treatment, as such, under the Internal Revenue Code of 1954. The bills are subjec

to estate, inheritance, gift or other excise taxes, whether Federal or State, but

Treasury bills are originally sold by the United States is considered to be inter

income tax return only the difference between the price paid for such bills, whet

Q U E S T I O N N A I R E (Continued)
10. If you favored method (c) In question 9, which of the following alternatives would be the most suitable?
(Check one)
l_]a. REINVESTMENT DEPRECIATION ALLOWANCE WHICH WOULD PERMIT THE DIFFERENCE BETWEEN THE
ORIGINAL COST AND THE CURRENT REPLACEMENT VALUE OF THE OLD ASSET TO BE DEDUCTED IMMEDIATELY WITH ADJUSTMENT OF THE DEPRECIABLE BASIS OF THE NEW PROPERTY
Ob. DEPRECIATION WHICH WOULD ALLOW THE TAXPAYER TO CLAIM ANNUAL DEPRECIATION BASED ON ORIGINAL COST ADJUSTED FOR CHANGES IN THE PRICE LEVEL
•

c OTHER (Specify)

0iV7

11. How does the amount of depreciation for book purposes compare with depreciation taken for tax purposes in
the most recent year? (Check only one)
O a. ABOUT THE SAME

O b . MORE

• c. LESS

12. If there are differences, are they caused by: (Check one or more)
l~~la. CAPITALIZATION OF DIFFERENT AMOUNTS*
Q]b. DIFFERENCE IN USEFUL LIVES?
DIFFERENCE IN DEPRECIATION METHODS (For example, straight line for book and double declining balance for
IIc. tax purposes)? IF ITEM 12c. WAS CHECKED, DO YOU SET UP DEFERRED TAX RESERVES OR MAKE OTHER
BOOK ADJUSTMENTS FOR THE CURRENT TAX DIFFERENCES RESULTING FROM THE NEW METHOD?

O <« YES

O (")•NO

O d - PRICE LEVEL ADJUSTMENTS FOR BOOK PURPOSES?
[~le. OTHER? (Specify)
13. If depreciation were liberalized along the lines you favor, would you be willing to:
a. GENERALLY CONFORM BOOK AND TAX DEPRECIATION
ACCOUNTING PRACTICES7
O W YES

O (")NO

b. FOREGO CAPITAL GAINS BENEFITS ON DISPOSALS OF
DEPRECIABLE PROPERTY TO THE EXTENT OF DEPRECIATION PREVIOUSLY TAKEN?

O W YES

O <") NO

c. WOULD LIBERALIZED DEPRECIATION MATERIALLY
INFLUENCE YOUR INVESTMENT DECISIONS SO AS TO
INCREASE YOUR CAPITAL EXPENDITURES? (Please
explain briefly the reasons for your answer to 13c.)

O (U YES

D (ID NO

14. D o you expect future rates of obsolescence on your depreciable property to increase significantly?
I I a. YES O

b- NO

W "Yet-" please explain reasons for expected change)

L5. Please complete the following summary schedule on the firm's dispositions of depreciable property during the most recent'
(Please round the figures to the nearest thousand and adjust items so that they add to totals)

ITEM

ORIGINAL
COST

ACCUMULATED
DEPRECIATION

(2)

NET
SALVAGE
AND SALES
PROCEEDS

(3)

NET GAIN OR LOSS (
REALIZED AS

)

CAPITAL

ORDINARY

(4)

(5)

AMOUNT OF
SALVAGE AND
JSALES PROCEED
CREDITED TO
DEPRECIATION
RESERVE
(6)

a. BUILDINGS AND
STRUCTURES
b. MACHINERY, EQUIPMENT
AND OTHER
c.

TOTAL
FORM

T.D. 2795-A (tf*

Budget Bureau Number 48-6001 Approval expires March 3;
U. S. TREASURY DEPARTMENT- DEPRECIATION SURVEY

QUESTIONNAIRE
(Explain items checked where appropriate - Use separate sheet for comments)

NAME AND ADDRESS OF FIRM

For Treas itDo not write
this space

1. Check any of the new methods permitted under the Internal Revenue Code of 1954 for tax purposes which you
are using for any significant part of your assets.
Oa.

THE DOUBLE DECLINING BALANCE

O b . THE SUM OF THE YEARS- DIGITS
d. ENTER THE YEAR YOU FIRST ADOPTED ANY OF
Qc. OTHER (Specify)
THESE METHODS 19.
2. Have you elected to use the additional first-year depreciation allowance provided under the Small Business
Tax Revision Act of 1958?

O a. YES

O b . NO

c. IF "YES," PLEASE ENTER THE AMOUNT OF THIS DEDUCTION FOR THE MOST RECENT YEAR (In thousands),

3. If a material change was made in the estimated useful lives of your depreciable assets for tax purposes since
December 31, 1953, please enter the year the change was made.
CHECK IF THE USEFUL LIVES WERE MADE
O b. LONGER
0<=-SHORTER
a. 19.
4. If a material change was made in the estimated salvage value of your depreciable assets for tax purposes
since December 31, 1953, please enter the year the change was made.
19.

CHECK IF THE SALVAGE VALUE WAS

b. INCREASED
c. DECREASED
o
o
5. D o you think the present allowances for depreciation for tax purposes are reasonably satisfactory?
O a. YES Ob. NO Oc. DON'T KNOW
6. If, in your opinion, you should have taken more depreciation than was allowed for tax purposes in the most recent year to maintain your investment in depreciable property and to provide for obsolescence, please fill out
the following items:
a. AMOUNT YOU ESTIMATE WOULD HAVE MET YOUR REQUIREMENTS (In thousands) $
b. ACTUAL DEPRECIATION AND AMORTIZATION DEDUCTION
c. DIFFERENCE
$
7. How did your capital expenditures on depreciable property since December 31, 1953 compare with your depreciation deductions for the same period?
a. CAPITAL EXPENDITURES ON DEPRECIABLE PROPERTY SINCE 1953 (In thousands) — $
b. DEPRECIATION $
c. AMORTIZATION $
d. TOTAL DEPRECIATION AND AMORTIZATION SINCE 1953
e. DIFFERENCE
_
$
8. If you think your deductions for depreciation are inadequate, what are the major reasons for this opinion?
(Check

one or more

of the

following)

„
O

a. USEFUL LIVES REQUIRED FOR TAX PURPOSES TOO LONG

U b. INADEQUATE ALLOWANCE DURING EARLY YEARS

c. CHANGE IN PRICE LEVELS

O d . OTHER (Specify)

9. If y o u think that the present tax treatment of depreciation should b e c h a n g e d , indicate your first choice b y entering " 1 " in the s p a c e provided a n d your s e c o n d choice b y entering "2" in the s p a c e provided. P l a c e a
c h e c k m a r k in the s p a c e provided for a n y of the other m e t h o d s w h i c h y o u favor. (If you so desire, please expand on any measure
you favor.)

a. ALL DEPRECIABLE ASSETS GROUPED INTO BROAD-CLASS CATEGORIES WITH GENERALLY SHORTER
MINIMUM LIVES PRESCRIBED BY STATUTE.
b. FURTHER ACCELERATION DURING EARLY PART OF LIFE OF ASSET, SUCH AS TRIPLE DECLINING BAL.
c. SOME FORM OF DEPRECIATION ADJUSTMENT TO REFLECT INCREASED PRICE LEVELS (See Question 10)
d. FURTHER EXTENSION OF ADDITIONAL FIRST-YEAR DEPRECIATION ALLOWANCE
e. FREEDOM TO FOLLOW OWN JUDGMENT AS TO LIVES AND METHODS (Consistently applied)
f. ISSUE A NEW REVISED BULLETIN "F", FOR CONTINUED USE AS A GUIDE ONLY.
g. LEGISLATION AUTHORIZING A DETAILED CLASSIFICATION OF ASSETS ALONG THE LINES OF BULLETIN
•«F", TO BE PRESCRIBED FOR GENERAL USE SUBJECT TO A STATUTORY PERCENTAGE LEEWAY AS TO
USEFUL LIVES OR DEPRECIATION RATES.
A SELECTIVE PROGRAM OF ACCELERATED DEPRECIATION FOR PARTICULAR. INDUSTRIES OR LINES OF
BUSINESS WHICH MAY DEMONSTRATE A NEED FOR ENCOURAGEMENT IN THE NATIONAL INTEREST (For
example, special shortened service lives for railroad equipment and rolling stock, textile machinery, or depreciable
assets used in producing for export)
1. O T H E R (Explain briefly)

FORM

- 2-

It would be greatly appreciated if you would undertake to complete
the questionnaire by September 1. Please address your reply to:
Administrator, Small Business Administration, Washington 25, D. C.
If you should encounter any problems in filling out the questionnaire, we would be glad to answer any questions or assist you in any
way which seems feasible. You may address your written inquiries to
me or to the Under Secretary of the Treasury, Treasury Department,
Washington 25, D. C. In case you wish to make an inquiry by telephone,
you may do so conveniently by calling the Chief, Tax Analysis Staff,
Treasury Department, at WOrth 4-23-8 or Executive 3-6400, extension 23-8,
here in Washington.
May I thank you in advance for your interest in making available
your suggestions and comments.
Sincerely yours,

(j Philip McCallum
Administrator

Enclosure

SMALL BUSINESS ADMINISTRATION
WASHINGTON 25, D. C

"C K
*-- <*J ^S

OFFICE OF THE ADMINISTRATOR August 8, i960

Dear Sir:
The Small Business Administration is co-operating with the Treasury
Department in making a survey of current practices and opinions on
depreciation deductions for income tax purposes. The enclosed questionnaire is designed to give you an opportunity to express your views and
suggestions on tax policy In the depreciation area.
The purpose of this survey is to provide a factual basis for
evaluating the many legislative proposals for changes In the depreciation provisions which have been placed before the Congress in recent
years. As you know, the income tax deductions for depreciation are of
particular importance to small business.
Your firm is one of a cross section
both large and small firms, which have
When the study is completed we hope to
group of businesses, more than half of
small business concerns.

of American industry, including
been selected for this study.
secure data from a representative
which would be classified as

We hope you will participate. We want a full representation of
the views of small businessmen in this study.
The Chairman of the Joint Committee on Internal Revenue Taxation,
which Is composed of the Chairmen and ranking members from both parties
of the tax-writing Committees of the Congress, has recently announced
that the Joint Committee is interested in this survey. His statement
indicated that in the past, because of the lack of information on this
subject, the Congress has encountered a great deal of difficulty in
considering proper legislation dealing with depreciation. As he stated,
if the groups included "would give full and prompt participation in
the survey, it would add greatly to its reliability and usefulness in
providing a sound basis for making revisions in the depreciation laws."
The survey is solely to provide information. The data requested
on the questionnaire are not designed or intended for use in the
review of particular taxpayers' depreciation allowances or tax
liabilities. Although statistical summaries will be made available
to the Congress and others, information with respect to individual
companies received through the survey will be held in confidence.

Page 2

intended, for use in the review of particular taxpayers* depreciation allowances or tax liabilities. Although statistical
summaries will be made available to the Congress and others,
information with respect to individual companies received through
the survey will be held in confidence.
It would be greatly appreciated if you would undertake
to complete and return the questionnaire and schedules by September 1* If you should encounter any problems in supplying the
data requested, we would be glad to answer any questions or
assist you in any way which seems feasible. Please address your
written inquiries to me. In case of telephone inquiries, please
call the Chief, Tax Analysis Staff, Treasury Department, at
WOrth 4-2_l8 or Executive 3-6400, extension 2318, here in Washington.
I should like to express our appreciation for your cooperation in providing the information essential to the success
of the survey.
Sincerely yours,

••* yi / • -/

^;y L.^yyyy y>
Fred C. Scribner, Jr.
/
Under Secretary of the ^Treasury
Enclosure

OQ'A

OFFICE OF THE SECRETARY OF THE TREASURY
WASHINGTON

(Copy of Under Secretary Scribner's cover letter
of July 5, I960 which was sent to 2700 corporations
included in the Treasury Department depreciation
survey.)

In the past two or three years many proposals for
changes in the tax laws relating to depreciation have been
placed before Congress. In studying these proposals, the
Treasury Department has found it difficult to evaluate them
because of a lack of sufficient reliable statistical Information. While we do not want to burden you, in order to determine what changes may be appropriate in this area we need more
information.
I am enclosing certain schedules and a questionnaire,
with accompanying instructions, to enable you to furnish information on your current practices and opinions on depreciation.
Your firm is one of about 6,000 businesses, both large and small,
representing a cross section of American industry included in
this survey.
The Chairman of the Joint Committee on Internal Revenue
Taxation, which is composed of the Chairmen and ranking members
from both parties of the tax-writing Committees of the Congress,
has recently announced that the Joint Committee is interested in
this survey. His statement indicated that in the past, because
of the lack of Information on this subject, the Congress has encountered a great deal of difficulty in considering proper legislation dealing with depreciation. As he stated, if the groups
included "would give full and prompt participation in the survey,
it would add greatly to its reliability and usefulness in providing a sound basis for making revisions in the depreciation laws."
The purpose of the survey is solely to provide a broad
statistical basis for an up-to-date understanding of depreciation
practices within industry groups and for general classes of depreciable properties. The data requested are not designed, or

Table 2
Choice of liberalized depreciation methods by volunteer respondents
(Percentage of responses)
:
Volunteers
1st choice::2nd choice :0therwi se favored

Depreciation methods
a.

All depreciable assets grouped into broad-class categories with
generally shorter minimum lives prescribed by statute

Qf>

c. Some form of depreciation adjustment to reflect increased price
levels
23

d. Further extension of additional first-year depreciation allowance4

f. Issue a revised Bulletin "F", for continued use as a guide only 1

IVfo

b. Further acceleration during early part of life of asset, such as
triple declining balance

e. Freedom to follow own judgment as to lives and methods,
consistently applied

ro
g.

Legislation authorizing a detailed classification of assets
along lines of Bulletin M F", to be prescribed for general use
subject to a statutory percentage leeway as to useful lives or
depreciation rates

CD
CO
1

h. A selective program of accelerated depreciation for particular
industries or lines of business which may demonstrate a need
for encouragement in the national interest

IOC?

*12

i. Other 4 2_ 8
Treasury Department, Tax Analysis S

IOC?
y

3, 1961

Source: Preliminary tabulation from Treasury Department Depreciation Survey Questionnaire,
Volunteer Respondents, Question 9.

Table 1
Choice of liberalized depreciation methods by responding large corporations and small businesses
(Percentage of responses)

Depreciation methods

Small businesses
Large corporations
:
herwise
1st choice 2nd choice : ° *
: l s t choice:2nd choice \°l^XlT
:
: favored :
:
: favored

All depreciable assets grouped into broadclass categories with generally shorter
minimum lives prescribed by statute
Further acceleration during early part
of life of asset, such as triple
declining balance

17$

14$

c. Some form of depreciation adjustment
to reflect increased price levels

13$

Further extension of additional firstyear depreciation allowance

14$

Freedom to follow own judgment as to
lives and methods, consistently applied

iris

f. Issue a revised Bulletin "F", for
continued use as a guide only

Legislation authorizing a detailed classification of assets along lines of Bulletin
"F", to be prescribed for general use subject to a statutory percentage leeway as
to useful lives or depreciation rates

h. A selective program of accelerated depreciation for particular industries or lines
of business which may demonstrate a need
for encouragement in the national interest
1.

Other

Treasury Department, Tax Analysis Staff
Source:

Toe?"

Toc$

100$
January 3, 1961

Prellralnary tabulation from Treasury Department DepreGiatLon Survey Questionnaire, Question 9,

100^

i~ w _,

APPENDIX A
Depreciation Survey - Large Corporations
Status of responses on December 22, i960
Responses through November included in preliminary tabulation
Additional late responses

1,918
kk

Total responses through December 22

1,962

Corporations unable to respond or for which data were
reported by other respondents:
Mergers, sale of assets, or consolidation for tax
purposes with respondents
Mergers or sale of assets to non-sample corporation
Mergers or sale of assets to nonrespondents
Corporation liquidated or ceased operations
Corporation indicating few or no depreciable assets
Duplications
No address located for corporation

139
14

9
26
39
7
9

243

Nonrespondents:

396

No reason given for nonresponse
Giving reason for response:
Lack of adequate staff and time 27
Expense of responding
Information not readily available
Engaged in discussion with Service
Have reported for affiliate
Present depreciation provisions satisfactory
No interest in survey
Assets outside the United States
Miscellaneous
Total large corporations in survey

Treasury Department, Tax Analysis Staff

10
8
6
16
6
5
8
14

100

496
2,701

January 3, 19&

- 7The significance of these data on business views concerning the
changing importance of the obsolescence factor in depreciation will be
enhanced by a comparative analysis, industry by industry, which is planned
for the final report.
•X-X-X-X--X-X-* X X X X **-X-X"X~X--X-X--X--X x x X X X'

This study was undertaken at the direction of Secretary of the Treasury
Robert B. Anderson, Under Secretary Fred C. Scribner, Jr., and Assistant to
the Secretary Jay W. Glasmann, to provide factual groundwork and guidelines
for the development of specific depreciation reforms which would encourage
growth and strengthen the economy. This preliminary report of results
dealing with taxpayers' experience and opinions in the depreciation area is
not intended to present Treasury recommendations at this time with respect
to future depreciation policy. However, the preliminary information
summarized here indicates discernible trends in the thinking and experience
of the business community and suggests many factors which should be taken
into consideration in the formulation of major tax reform in the depreciation
area.

•^ r- <«\

- 6 Depreciation for book purposes compared with tax depreciation
About 6l percent of the large corporations indicated that depreciation
for book purposes was about the same as depreciation taken for tax purposes
in the most recent year. About 28 percent took less depreciation for book
than for tax purposes, while 11 percent took more for book than for tax
purposes. In the case of the smaller firms, depreciation for book and tax
purposes was about the same for about 92 percent of the respondents. The
remaining 8 percent was approximately equally divided between those who
took more and those who took less for book than for tax purposes.
While differences in tax and book depreciation were reported to be
due to a variety of factors, the bulk of the large firms indicating such
differences reported that they were caused by differences in depreciation
methods. About 62 percent of those indicating that there was a difference
in depreciation methods, such as the use of straight line for book and the
double declining balance for tax purposes, reported that they set up deferre
tax reserves or made other book adjustments for the current tax differences
resulting from the new methods.
Business response to liberalized depreciation
The great majority of firms answering this question (86 percent of the
larger corporations and 97 percent of the smaller businesses) indicated
that they would be willing generally to conform book and tax depreciation
accounting in the event depreciation were liberalized along the lines they
favored.
A substantial majority who answered (73 percent for large and 63 percent for small firms) also expressed willingness to forego capital gain
benefits on disposals of depreciable property to the extent of depreciation
previously taken if depreciation were liberalized.
A decisive majority of the responding firms (approximately 65 percent of the large and 59 percent of the small businesses) indicated that
liberalized depreciation would materially influence their investment
decisions in a manner which would increase their capital expenditures.
Opinions on future trends of obsolescence
The questionnaire data do not show clear trends of opinion on expected
changes in the future rates of obsolescence on depreciable property. About
58 percent of the larger firms were of the opinion that future rates of
obsolescence would increase significantly, as against 42 percent who were
of the opinion that they would not so increase. However, only 34 percent
of the small business respondents anticipated an increase in the tempo of
obsolescence.

«U^ \mJ

- 5 Choices among alternative methods of liberalization
About 89 percent of the larger firms returning questionnaires and
85 percent of the smaller firms chose to answer Question 9, which gave
participants in the survey an opportunity to express their choice among
alternative methods of liberalization. These are substantially higher
proportions of the survey groups than the number indicating that they
felt that the present allowances are not satisfactory. Among both large
and small firms, a decided preference was expressed for a method which
would accord the taxpayer freedom to follow his own judgment as to useful
lives and depreciation methods, consistently applied. In the case of the
large corporations, for example, 51 percent of those indicating a first
choice among methods of liberalization, chose freedom to follow the taxpayer's own judgment.. About 29 percent gave first choice to some form of
depreciation adjustment to reflect increased price levels. About 8 percent designated as first choice a method of grouping depreciable assets
into broad class categories, with generally shortened minimum lives prescribed by statute.
The small business firms expressed approximately the same pattern of
preferences among alternative methods of liberalization. About 5° percent
of the small firms gave first choice to freedom to follow the taxpayer's
own judgment, with about 22 percent preferring adjustments to reflect
increased price levels and 13 percent, the statutory bracket system. The
general pattern of choice indicated on the volunteer returns was similar
to that expressed by the survey groups, both large and small.
Further details on the order of choice among alternative liberalization methods are summarized in the accompanying tables 1 and 2.
Methods of depreciation adjustment to reflect increased price levels.
Over half of the large corporations indicated interest in some form
of depreciation adjustment to reflect increased price levels by giving
it first or second choice or otherwise favoring this approach. Of this
number, about three-fourths felt that the most suitable method of making
this adjustment would be to allow the taxpayer to claim annual depreciation based on original cost adjusted for changes in the price level.
About one-fifth of this group favored the reinvestment depreciation
allowance which would permit the differences between the original cost
and current replacement value of a retired asset to be deducted at the
time of replacement with a corresponding reduction of the depreciable
basis of the new property. Less than 5 percent of such respondents
indicated a preference for other methods of price level adjustment.
Among the small business group, about 59 percent favored annual
adjustments to cost depreciation and 39 percent the reinvestment depreciation allowance.

- 4Of the one out of six reporting a change in estimated life, about onethird involved instances in which service lives were shortened materially
while two-thirds involved lengthening of service life. Thus, out of 1,918
responding corporations, only 222 reported a material lengthening of service life in the period since 1953. The one out of eight involving a
material change in estimated salvage value generally represented adjustments which increased salvage.
The experience of the small business respondents with respect to
changes of estimated service life disclosed a similar pattern. The questionnaire data suggest, however, that changes in salvage value estimates
have been somewhat more numerous among the small business respondents.
Limitations of the preliminary and other available data make it
difficult to compare the experience since the adoption of liberalized
administrative procedures under the 1953 Revenue Rulings 90 and 91 "with
administrative experience for earlier periods. However, statistical
information will be available to permit an analysis of the classes and
length of life of assets and types of businesses in which the estimated
useful lives and salvage values have been materially altered during the
survey period, as well as the probable reasons for such adjustments.
General views on present depreciation provisions
About 32 percent of the large corporations and 53 percent of the
smaller firms indicated that they regard the present allowances for
depreciation for tax purposes as reasonably satisfactory. About 63 percent of the large corporations and about 42 percent of the smaller firms
considered the present allowances unsatisfactory. A minority of 5 percent had no opinions as to whether present provisions are reasonably
satisfactory.
Opinions of major causes of inadequacy of depreciation allowances
In general, the views of the large and small firms on causes of
inadequacy of present depreciation allowances followed a similar pattern.
More than 60 percent of the firms responding to this phase of the questionnaire attributed what they considered an inadequacy of the present
allowances to excessively long useful lives for tax purposes. About 20
percent attributed the inadequacy to inappropriate timing of allowances
resulting in an insufficient allowance during the early years of service.
About 70 percent considered the change in price levels to be a major cause
of inadequacy. The number of firms expressing opinions on the major reasons
for the inadequacy of present depreciation allowances was somewhat greater
than those who chose to indicate that the present system is not reasonably
satisfactory.

ozc
- 3Use of new depreciation methods
About 70 percent of the responding large corporations reported that
they used one or more of the new liberalized depreciation methods authorized under the Internal Revenue Code of 1954, leaving 30 percent which did
not report using the new methods for any significant part of their depreciable property accounts. Of those reporting that they had adopted one or
more of the new methods, nearly two-thirds indicated that they were using
the double declining balance method. More than one-half reported using the
sura of the years digits method. About 1 percent reported that they were
using other equivalent new methods.
Among the smaller business firms, 57 percent reported the use of one
or more of the new methods. About three-fourths of these indicated that
they were using the double declining balance method. More than one-third
reported use of the sum of the years digits method, with a small number
using other equivalent methods.
Additional first-year depreciation allowance
As might reasonably be expected, the preliminary survey data disclosed
differences in the extent of use of the additional first-year depreciation
allowance provided under the Small Business Tax Revision Act of 1958, as
between large and small firms. This allowance permits the taxpayer at
his election to write off in the first year 20 percent of up to $10,000
capital expenditures annually ($20,000 on a joint return) for both new
and used equipment, other than certain short-lived assets. Although equally
available to large and small firms, it is of importance chiefly for small
business. About 22 percent of the larger corporations surveyed had elected
to use the additional first-year depreciation allowance. About 37 percent
of the smaller firms had elected to use the additional first-year allowance.
Recent experience with respect to changes in service lives and salvage
values
Questionnaire responses by both large and small firms indicated relatively few material changes in service lives and salvage value during the
period since 1953- The number of reported changes - either increases or
decreases - reflect general stability in this aspect of depreciation.
In the case of the large firms, five out of six reported no material
change in estimated useful life since 1953. About seven out of eight reported no material change in estimated salvage value in the survey period.

o r~ r~

- 2 classifications was also made so as to provide approximately two-thirds coverage of the depreciable property in each industry. The small businesses in the
survey were determined, from as vide a range of Industries as was practicable,
by random selection procedures using the list of commercial and industrial
employers with between 50 and 250 employees reporting to the Bureau of OldAge and Survivors Insurance for purposes of the Federal payroll taxes. A
more detailed description of the selection procedures and the characteristics
of the survey groups will be included in the final report.
For large corporations, 2,701 schedules and questionnaires were mailed,
of which 1,918 or 71 percent were returned satisfactorily filled out in sufficient time for the present tabulation. Some additional returns have been
received which were too late to be included in the preliminary tabulation
but which will be utilized in the final report. Allowing for these late
returns and other factors, such as mergers and consolidated reporting among
respondents subsequent to the selection of the survey group, it is estimated
the effective response by the larger firms has been nearly 80 percent. The
large corporations included in this preliminary study reported depreciable
property of about $202 billion or over half of the total depreciable property
accounts of taxpaying corporations. A recent tally of responses and nonresponses by the larger firms, with reasons for nonresponse, is shown in
Appendix A.
In the small business portion of the survey 7>593 questionnaires were
mailed, of which 1,177 or nearly one-sixth were returned in time for the
present preliminary report. Owing to the greater number of small businesses
and selection procedures used, mailings of questionnaires to small businesses
by the Small Business Administration were necessarily made at a later date
then the initial mailings by the Treasury to large corporations, resulting
in less time for response prior to the cut-off for this report. Follow-up
procedures used to encourage response by the larger firms were not feasible
for the more numerous small businesses selected for the study. Nevertheless,
the one-sixth response reported here is relatively high by standards of past
experience with mail surveys of the small business community. Preliminary
study indicates that an important factor contributing to nonresponse has been
the relatively high turnover, including changes of ownership, name, and address
among small enterprises. A further analysis of nonrespondents and typical
reasons for nonresponse among the smaller firms is in preparation for the final
report.
An additional 361 questionnaire returns were volunteered by firms, mostly
small, not included in the Initial sample. Including the volunteer returns,
questionnaire data have been received from roughly 3,500 respondents, of which
about 2,000 may be characterized as large and 1,500 as small businesses.

Preliminary Report on Treasury Depreciation Survey

*--**.

This preliminary report on the results of the Treasury's depreciation
survey, initiated by the Department last July, summarizes the highlights of
current practices and opinions on depreciation obtained from survey questionnaires returned through November. The study was conducted in cooperation with
the Small Business Administration with particular reference to the small businesses included in the survey. A copy of the questionnaire form and the respective transmittal letters from Under Secretary of the Treasury Fred C.
Scribner, Jr. and Small Business Administrator Philip McCallum, which were
sent to participating businesses and on which the present summary is based,
accompany this report.
The purpose of the survey is to obtain up-to-date information on current
depreciation practices and opinions from representative groups of taxpayers
in order to determine how the present depreciation provisions of the tax law
are operating and what legislative changes may be appropriate. It is hoped
that this preliminary report may furnish guidance to public consideration
of possible revisions in the depreciation law pending completion of a more
detailed study which will include late returns and which requires further
time for tabulation and processing of the data.
In addition to providing a more complete analysis and interpretation
of the results, the final study will furnish statistical information on
service lives of different types of depreciable property, more comprehensive
reporting on the extent of the use of the new methods of depreciation made
available under the 1954 Internal Revenue Code, as well as other pertinent
information. The final study will also include appropriate classification
of data by size of firm and industry, which could not be completed in time
for this report. The present preliminary report therefore covers only key
aspects of the questionnaire portion of the survey for both large and small
firms. It deals primarily with Information submitted on depreciation practices, experience under the present law, and opinions on alternative legislative approaches to liberalization of depreciation in the interest of a
better tax system, expanded investment, and greater employment opportunities.
Coverage of preliminary report
The survey results reported here are necessarily subject to the limitations inherent in a study of this nature and scope. The survey covered two
distinct groups: one comprising large corporations with a high proportion
of all the depreciable property on tax returns; the other comprising a
longer list of small enterprises, both corporate and unincorporated, which
were canvassed by the Small Business Administration. The list of large
corporations surveyed was compiled through selection procedures which
Included businesses with approximately two-thirds of the total depreciable
property of active taxpaying corporations in the country. To the extent
feasible, the distribution of the survey groups among different industrial

TREASURY DEPARTMENT

253

WASHINGTON, D.C.

RELEASE A.M. NEWSPAPERS,
Thursday, January 5, 19ol.

A-1014

The Treasury Department today released the attached
preliminary report on the results of its depreciation
survey.
This study, which has been conducted by the
Treasury in cooperation with the Small Business
Administration, was initiated last July with the
transmittal by Under Secretary Fred C. Scribner, Jr.
of questionnaires to a cross section of thousands of
businesses throughout the country. Today's preliminary
report summarizes the highlights of the survey findings
on current practices and opinions on depreciation policy,
including major tax reforms in this area to expand
investment and employment opportunities.
A final report which will present additional
Information is scheduled when more detailed tabulations
are completed.

Sryx.-^f^/
^

<~* c o
j _ _• —

i^t-ffe/

fi~/ a*

*y Departmenttoday released the attached preliminary
report on the results of its depreciation survey.TThis study, which
has been conducted by the Treasury in cooperation with the Small
Business Administration, was initiated last July with the transmittal
by Under Secretary Fred C. Scribner, Jr. of questionnaires to a cross
section of thousands of businesses throughout the country. Today's
preliminary report summarizes the highlights of the survey findings
on current practices and opinions on depreciation policy, including
major tax reforms in this area to expand investment and employment
opportunities.7^A final report which will present additional information is scheduled when more detailed tabulations are completed.

Preliminary Report on Treasury Depreciation Survey
This preliminary report on the results of the Treasury's depreciation
survey, initiated by the Department last July, summarizes the highlights of
current practices and opinions on depreciation obtained from survey questionnaires returned through November. The study was conducted in cooperation with
the Small Business Administration with particular reference to the small businesses included in the survey. A copy of the questionnaire form and the respective transmittal letters from Under Secretary of the Treasury Fred C.
Scribner, Jr. and Small Business Administrator Philip McCallum, which were
sent to participating businesses and on which the present summary is based,
accompany this report.
The purpose of the survey is to obtain up-to-date information on current
depreciation practices and opinions from representative groups of taxpayers
in order to determine how the present depreciation provisions of the tax law
are operating and what legislative changes may be appropriate. It is hoped
that this preliminary report may furnish guidance to public consideration
of possible revisions in the depreciation law pending completion of a more
detailed study which will include late returns and which requires further
time for tabulation and processing of the data.
In addition to providing a more complete analysis and interpretation
of the results, the final study will furnish statistical information on
service lives of different types of depreciable property, more comprehensive
reporting on the extent of the use of the new methods of depreciation made
available under the 1954 Internal Revenue Code, as well as other pertinent
information. The final study will also include appropriate classification
of data by size of firm and industry, which could not be completed in time
for this report. The present preliminary report therefore covers only key
aspects of the questionnaire portion of the survey for both large and small
firms. It deals primarily with information submitted on depreciation practices, experience under the present law, and opinions on alternative legislative approaches to liberalization of depreciation in the interest of a
better tax system, expanded investment, and greater employment opportunities.
Coverage of preliminary report
The survey results reported here are necessarily subject to the limitations inherent in a study of this nature and scope- The survey covered two
distinct groups: one comprising large corporations with a high proportion
of all the depreciable property on tax returns; the other comprising a
longer list of small enterprises, both corporate and unincorporated, which
were canvassed by the Small Business Administration. The list of large
corporations surveyed was compiled through selection procedures which
included businesses with approximately two-thirds of the total depreciable
property of active taxpaying corporations in the country. To the extent
feasible, the distribution of the survey groups among different industrial

- 2 classifications was also made so as to provide approximately two-thirds coverage of the depreciable property in each industry. The small businesses In the
survey were determined, from as wide a range of industries as was practicable,
by random selection procedures using the list of commercial and industrial
employers with between 50 and 250 employees reporting to the Bureau of OldAge and Survivors Insurance for purposes of the Federal payroll taxes. A
more detailed description of the selection procedures and the characteristics
of the survey groups will be included in the final report.
For large corporations, 2,701 schedules and questionnaires were mailed,
of which 1,918 or 71 percent were returned satisfactorily filled out in sufficient time for the present tabulation. Some additional returns have been
received which were too late to be included in the preliminary tabulation
but which will be utilized in the final report. Allowing for these late
returns and other factors, such as mergers and consolidated reporting among
respondents subsequent to the selection of the survey group, it is estimated
the effective response by the larger firms has been nearly 80 percent. The
large corporations included in this preliminary study reported depreciable
property of about $202 billion or over half of the total depreciable property
accounts of taxpaying corporations. A recent tally of responses and nonresponses by the larger firms, with reasons for nonresponse, is shown in
Appendix A.
In the small business portion of the survey 7,593 questionnaires were
mailed, of which 1,177 or nearly one-sixth were returned in time for the
present preliminary report. Owing to the greater number of small businesses
and selection procedures used, mailings of questionnaires to small businesses
by the Small Business Administration were necessarily made at a later date
then the initial mailings by the Treasury to large corporations, resulting
in less time for response prior to the cut-off for this report. Follow-up
procedures used to encourage response by the larger firms were not feasible
for the more numerous small businesses selected for the study. Nevertheless,
the one-sixth response reported here is relatively high by standards of past
experience with mail surveys of the small business community. Preliminary
study indicates that an important factor contributing to nonresponse has been
the relatively high turnover, including changes of ownership, name, and address,
among small enterprises. A further analysis of nonrespondents and typical
reasons for nonresponse among the smaller firms is in preparation for the final
report.
An additional 361 questionnaire returns were volunteered by firms, mostly
small, not included in the initial sample. Including the volunteer returns,
questionnaire data have been received from roughly 3*500 respondents, of which
about 2,000 may be characterized as large and 1,5°0 as small businesses.

- 3Use of new depreciation methods
About 70 percent of the responding large corporations reported that
they used one or more of the new liberalized depreciation methods authorized under the Internal Revenue Code of 1954, leaving 30 percent which did
not report using the new methods for any significant part of their depreciable property accounts. Of those reporting that they had adopted one or
more of the new methods, nearly two-thirds indicated that they were using
the double declining balance method. More than one-half reported using the
sum of the years digits method. About 1 percent reported that they were
using other equivalent new methods.
Among the smaller business firms, 57 percent reported the use of one
or more of the new methods. About three-fourths of these indicated that
they were using the double declining balance method. More than one-third
reported use of the sum of the years digits method, with a small number
using other equivalent methods.
Additional first-year depreciation allowance
As might reasonably be expected, the preliminary survey data disclosed
differences in the extent of use of the additional first-year depreciation
allowance provided under the Small Business Tax Revision Act of 1958, as
between large and small firms. This allowance permits the taxpayer at
his election to write off in the first year 20 percent of up to $10,000
capital expenditures annually ($20,000 on a joint return) for both new
and used equipment, other than certain short-lived assets. Although equally
available to large and small firms, it is of importance chiefly for small
business. About 22 percent of the larger corporations surveyed had elected
to use the additional first-year depreciation allowance. About 37 percent
of the smaller firms had elected to use the additional first-year allowance.
Recent experience with respect to changes in service lives and salvage
values
Questionnaire responses by both large and small firms indicated relatively few material changes in service lives and salvage value during the
period since 1953• The number of reported changes - either increases or
decreases - reflect general stability in this aspect of depreciation.
In the case of the large firms, five out of six reported no material
change in estimated useful life since 1953* About seven out of eight reported no material change in estimated salvage value in the survey period.

- 4Of the one out of six reporting a change in estimated life, about onethird involved instances in which service lives were shortened materially
while two-thirds involved lengthening of service life. Thus, out of 1,918
responding corporations, only 222 reported a material lengthening of service life in the period since 1953• The one out of eight involving a
material change in estimated salvage value generally represented adjustments which increased salvage.
The experience of the small business respondents with respect to
changes of estimated service life disclosed a similar pattern. The questionnaire data suggest, however, that changes in salvage value estimates
have been somewhat more numerous among the small business respondents.
Limitations of the preliminary and other available data make it
difficult to compare the experience since the adoption of liberalized
administrative procedures under the 1953 Revenue Rulings 90 and 91 with
administrative experience for earlier periods. However, statistical
information will be available to permit an analysis of the classes and
length of life of assets and types of businesses in which the estimated
useful lives and salvage values have been materially altered during the
survey period, as well as the probable reasons for such adjustments.
General views on present depreciation provisions
About 32 percent of the large corporations and 53 percent of the
smaller firms indicated that they regard the present allowances for
depreciation for tax purposes as reasonably satisfactory. About 63 percent of the large corporations and about 42 percent of the smaller firms
considered the present allowances unsatisfactory. A minority of 5 percent had no opinions as to whether present provisions are reasonably
satisfactory.
Opinions of major causes of inadequacy of depreciation allowances
In general, the views of the large and small firms on causes of
inadequacy of present depreciation allowances followed a similar pattern.
More than 60 percent of the firms responding to this phase of the questionnaire attributed what they considered an inadequacy of the present
allowances to excessively long useful lives for tax purposes. About 20
percent attributed the inadequacy to inappropriate timing of allowances
resulting in an insufficient allowance during the early years of service.
About 70 percent considered the change in price levels to be a major cause
of inadequacy. The number of firms expressing opinions on the major reasons
for the inadequacy of present depreciation allowances was somewhat greater
than those who chose to indicate that the present system is not reasonably
satisfactory.

-5 Choices among alternative methods of liberalization
About 89 percent of the larger firms returning questionnaires and
85 percent of the smaller firms chose to answer Question 9, which gave
participants in the survey an opportunity to express their choice among
alternative methods of liberalization. These are substantially higher
proportions of the survey groups than the number indicating that they
felt that the present allowances are not satisfactory. Among both large
and small firms, a decided preference was expressed for a method which
would accord the taxpayer freedom to follow his own judgment as to useful
lives and depreciation methods, consistently applied. In the case of the
large corporations, for example, 51 percent of those indicating a first
choice among methods of liberalization, chose freedom to follow the taxpayer's own judgment. About 29 percent gave first choice to some form of
depreciation adjustment to reflect increased price levels. About 8 percent designated as first choice a method of grouping depreciable assets
into broad class categories, with generally shortened minimum lives prescribed by statute.
The small business firms expressed approximately the same pattern of
preferences among alternative methods of liberalization. About 50 percent
of the small firms gave first choice to freedom to follow the taxpayer's
own judgment, with about 22 percent preferring adjustments to reflect
increased price levels and 13 percent, the statutory bracket system. The
general pattern of choice indicated on the volunteer returns was similar
to that expressed by the survey groups, both large and small.
Further details on the order of choice among alternative liberalization methods are summarized in the accompanying tables 1 and 2.
Methods of depreciation adjustment to reflect increased price levels,
Over half of the large corporations indicated interest in some form
of depreciation adjustment to reflect increased price levels by giving
it first or second choice or otherwise favoring this approach. Of this
number, about three-fourths felt that the most suitable method of making
this adjustment would be to allow the taxpayer to claim annual depreciation based on original cost adjusted for changes in the price level.
About one-fifth of this group favored the reinvestment depreciation
allowance which would permit the differences between the original cost
and current replacement value of a retired asset to be deducted at the
time of replacement with a corresponding reduction of the depreciable
basis of the new property. Less than 5 percent of such respondents
indicated a preference for other methods of price level adjustment.
Among the small business group, about 59 percent favored annual
adjustments to cost depreciation and 39 percent the reinvestment depreciation allowance.

- 6 Depreciation for book purposes compared with tax depreciation
About 6l percent of the large corporations indicated that depreciation
for book purposes was about the same as depreciation taken for tax purposes
in the most recent year. About 28 percent took less depreciation for book
than for tax purposes, while 11 percent took more for book than for tax
purposes. In the case of the smaller firms, depreciation for book and tax
purposes was about the same for about 92 percent of the respondents. The
remaining 8 percent was approximately equally divided between those who
took more and those who took less for book than for tax purposes.
While differences in tax and book depreciation were reported to be
due to a variety of factors, the bulk of the large firms indicating such
differences reported that they were caused by differences in depreciation
methods. About 62 percent of those indicating that there was a difference
in depreciation methods, such as the use of straight line for book and the
double declining balance for tax purposes, reported that they set up deferred
tax reserves or made other book adjustments for the current tax differences
resulting from the new methods.
Business response to liberalized depreciation
The great majority of firms answering this question (86 percent of the
larger corporations and 97 percent of the smaller businesses) indicated
that they would be willing generally to conform book and tax depreciation
accounting in the event depreciation were liberalized along the lines they
favored.
A substantial majority who answered (73 percent for large and 63 percent for small firms) also expressed willingness to forego capital gain
benefits on disposals of depreciable property to the extent of depreciation
previously taken if depreciation were liberalized.
A decisive majority of the responding firms (approximately 65 percent of the large and 59 percent of the small businesses) indicated that
liberalized depreciation would materially influence their investment
decisions in a manner which would increase their capital expenditures.
Opinions on future trends of obsolescence
The questionnaire data do not show clear trends of opinion on expected
changes in the future rates of obsolescence on depreciable property. About
58 percent of the larger firms were of the opinion that future rates of
obsolescence would increase significantly, as against 42 percent who were
of the opinion that they would not so increase. However, only 34 percent
of the small business respondents anticipated an increase in the tempo of
obsolescence.

-7 The significance of these data on business views concerning the
changing importance of the obsolescence factor in depreciation will be
enhanced by a comparative analysis, industry by industry, which is planned
for the final report.
•V...V. V..V..V. YT.V.IV •V..Y.I.Y, iV,.V..Y,.V V.,V_,V_,V, V.V.V.V.V ,V V,
A A"AA
A A AA"A

A JT A " A A A

A7*»ATTT A " A A A " A T T

APPENDIX A
Depreciation Survey - Large Corporations
Status of responses on December 22, i960
Responses through November included in preliminary tabulation
Additional late responses
Total responses through December 22

1,962

139
14
9
26
39
7
9

243

Nonrespondents:
No reason given for nonresponse

396

Giving reason for response:
Lack of adequate staff and time 27
Expense of responding
Information not readily available
Engaged in discussion with Service
Have reported for affiliate
Present depreciation provisions satisfactory
No interest in survey
Assets outside the United States
Miscellaneous
Total large corporations in survey

Treasury Department, Tax Analysis Staff

10
8
6
16
6
5
8
±k

100

496
2,701

January 3

Table 1
Choice of liberalized depreciation methods by responding large corporations and small businesses
(Percentage of responses)
Large corporations
Small businesses
i„+ u •
:o J u •
:Otherwise:- , , . : 0 , , . :Otherwise
1st choice
2nd choice
_
, 1st choice 2nd choice _
,
:
: favored :
:
: favored
a. All depreciable assets grouped into broadclass categories with generally shorter
minimum lives prescribed by statute
14*
14*
17*
13*
Depreciation methods

b. Further acceleration during early part
of life of asset, such as triple
declining balance
c. Some form of depreciation adjustment
to reflect increased price levels

d. Further extension of additional firstyear depreciation allowance
e. Freedom to follow own judgment as to
lives and methods, consistently applied

f. Issue a revised Bulletin "F", for
continued use as a guide only
Legislation authorizing a detailed classification of assets along lines of Bulletin
"F", to be prescribed for general use subject to a statutory percentage leeway as
to useful lives or depreciation rates
h. A selective program of accelerated depreciation for particular industries or lines
of business which may demonstrate a need
for encouragement in the national interest

i. Other

Toc^-

10036

6
Too^"

Toc$

4
Toc^r

Treasury Department, Tax Analysis Staff
January 3, 196I
*Less than 1*.
Source: Preliminary tabulation from Treasury Department Depreciation Survey Questionnaire, Question 9.

Table 2
Choice of liberalized depreciation methods by volunteer respondents
(Percentage of responses)

Depreciation methods
a.

:
Volunteers
. l s t choice:2nd choice:Otherwise favored

All depreciable assets grouped into broad-class categories with
generally shorter minimum lives prescribed by statute

13*

b. Further acceleration during early part of life of asset, such as
8
triple declining balance

c. Some form of depreciation adjustment to reflect increased price
levels
23

d. Further extension of additional first-year depreciation allowance4

f. Issue a revised Bulletin "F", for continued use as a guide only 1

e. Freedom to follow own judgment as to lives and methods,
consistently applied

11*

g. Legislation authorizing a detailed classification of assets
along lines of Bulletin !,FM, to be prescribed for general use
subject to a statutory percentage leeway as to useful lives or
depreciation rates

h. A selective program of accelerated depreciation for particular
industries or lines of business which may demonstrate a need
for encouragement in the national interest

_0C|

100JE

100^

i. Other 4 2 8
Treasury Department, Tax Analysis Staff

January 3, 1961

Source: Preliminary tabulation from Treasury Department Depreciation Survey Questionnaire,
Volunteer Respondents, Question 9.

TREASURY DEPART

SSJSC—if.l^-,.•:••is

WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS, Saturday, December 31, I960.

N^>-?
^
A-1013

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 October 6
I960, and the other series to be dated January $, 196l9 which were offered on December 22, were opened at the Federal Reserve Banks on December 30. Tenders were
invited for $1,000,000,000, or thereabouts, of 91-day bills and for $500,000,000, or
thereabouts, of 182-day bills. The details of the two series are as followst
RANGE OF ACCEPTED
COMPETITIVE BIDS:

High
Low
Average

91-day Treasury bills
maturing April 6, 196l
Approx. Equiv,
Price
Annual Rate
99.kh9 a/
99.k30 "
99.k3$

2.180$
2.255$
2.234$ 1/

182-day Treasury bills
maturing July 6, 196l
Approx. _qui\,*
Price
Annual Rate
98.786 b/
98.760 "
98.772

2.401$
2.453$
2.429$ 3/

a/ Excepting one tender of $100,000
T>/ Excepting one tender of $200,000
The entire amount of 91-day bills bid at the low price was accepted
86 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
B
21,094,000
1,359,936,000
24,283,000
18,221,000
10,498,000
17,973,000
173,945,000
25,498,000
11,413,000
35,586,000
10,239,000
47,757,000
$1,756,443,066

Accepted
Applied For
$1,475,000
000
21,094,
f
796,169,000
703,436,000
6,754,000
13,283,000
10,566,000
18,221,000
1,504,000
10,498,000
3,431,000
16,873,000
55,544,000
108,445,000
3,339,000
24,498,000
3,615,000
7,413,000
12,655,000
34,586,000
2,248,000
10,239,000
29,397,000
000
31,757,
P.,000,343,000 c/ $926,697,000

Accepted
$ 1,475,000
422,989,000
1,754,000
10,559,000
1,504,000
3,231,000
24,264,000
3,089,000
2,115,000
12,501,000
2,248,000
14,407,000

$5o6 i36',ooM

y Includes $176,589,000 noncompetitive tenders accepted at the average price of 99&
d/ Includes $30,932,000 noncompetitive tenders accepted at the average price of 98.77
_/ On a coupon issue of the same length and for the same amount invested, the return
*"
these bills would provide yields of 2.28$, for the 91-day bills, and 2.49$,for
182-day bills. Interest rates on bills are quoted in terms of bank discount wit
the return related to the face amount of the bills payable at maturity rather th
the amount invested and their length in actual number of days related to a 3^0*^
year. In contrast, yields on certificates, notes, and bonds are computed in ter
of interest on the amount invested, and relate the number of days remaining i» a
interest payment period to the actual number of days in the period, with semis®
compounding if more than one coupon period is involved.

£.:u

A-'/o/

tlM f r u u m ? StfMwtoMHit mmmmmmB TmaiA mmim
%kmt Mm ttntfto* f»r two M I I M
«f f m t u r tin*, mm mwrtmm %• mm as tftitlml t i m #f tut Mils feto* OvMNur § #
%$$®9 m& to* «*_*» N r l M u m mm
Jtomt? St W$l» ***. mm offmrt <m D»»
mm%mr n$ mm ®pmm*. m% %hm tm4mml mwmnm MwkM on Bmmmimm 3®. Tsslters mm
tmitm4 tm %\9tm$mm$m&$
m Mmmim&mi*** •* nnHar u u i «ni <nr $§m9m$omg
«r
tfemtlMmte, of lit«4ay mil*, flit dftmilt *f tt» %m mmim mrm m
mUmmt
l$3-d^r tyawaqr fettl*
mmt 0? AccsmD

tcmnrxnut m s t
JB&WL •_ #JMB&UBttL~,
solo*

ff.tt*)/

9t.9fO~
Avwrttt

sJtitf
t»MM y

*/fe.^ceptiBrone traltr of #300,000
The tatlm w#ul of 91-day MU§ bM m% %m Urn ptUm mm
BB pmmmm% of Mm mmn% mi TMB^mj bill* MM -trnt m* mm ] * * pp|## w u

mm&p%m

ran 9Mmmm A m n &rat**& ACCOTID si i m i tssim Piafsicts*

i^r1
Mr fM B
M&MiMfc
§%mml»M

4C:«i_Dt@d

"CxxJ
Tt&UMOO
is,atx,ooo

litftlf#$§

»3*ftoltO00
iMrStOoo

17#fT5tWI

24,264,000

4WW* ji #nnjp jpWww

tb»k9§»t0t
€•&•*• city
San Fra^i^eo

JfcJtMOO
aMJMto

2,^48,000
gn_ftjiTf0QP

t#itf,iae
t*afaMao

WK»07»U»

XwltttfM llT##Pff0e© mmmpmttttm
%mwmm mmmt** m% Mm t w i f i y«iM» #f ft *US
X m l ^ l ^ IJO^fJHI/W iMttMH|MAiti«» t«^l#r® Mt^piitA «t *!» iw®r«g€ inrlM «f VS.Ttt
m m tmmm Ommrn *f "to® mmm tmm^ mm pt ife# mm mmm% Utn*%m69 th« r#im» #m
^«»# %UXi n « M pntrimm jrUAAn «f «*t%» f®r tlM fl-4my U I U , UMI ».I^S, tm Mm
mto<4*y mill*. Mmmm%
vmiAm m hiXXm mm qmftmB £® tmm oi hmk BimmmaB *IAH
M%m m%mm mUtm4 t# %hm li^t mm,nt mi m @frillssmy&M® at M'terity xmt^tr Mmm.
%m mm®®* lmm%m4 m* tt»lr Magife i» M t w a w«fei»r ®f iayt » U M to a J60*4a$ymr* tm m®%r»m$ jrteXto #n Mf%lfitai«ct ne%«i# »a^ b^^i mm ®mpu%m$ %& tmm®
mi l»t«i*9t ^n til* «M«ni in»#®t#it mm mlmXm Mm wmXmt of iays ww&iislisi to «
int#r#tt ptpMK* ptriNI to WMI tetual mfetf «f «ty» is «it pmUA9 with mm&mmm&
If mors %hmm om mmpm mr%$* im iimslwi.,

TREASURY DEPA
WASHINGTON, D.C
REISASE A. M. NEWSPAPERS, Saturday, December 24, I960.

A-1012

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 September 29,
I960, and the other series to be dated December 29, I960, which were offered on
December 16, were opened at the Federal Reserve Banks on December 23. Tenders were in
vited for $1,000,000,000, or thereabouts, of 91-day bills and for $500,000,000, or the;
abouts, of 182-day bills. The details of the two series are as follows j
RAN3E OF ACCEPTED
COMPETITIVE BIDS:

High
Low
Average

91-day Treasury bills
:i
1
maturing March 30, 1961
Approx. Equiv. ;
Price
Annual Rate
j1

99.464
99.449
99.457

2.120$
2.180$
2.148$ 1/

i
1
!1

182-day Treasury bills
maturing June 29, 1961
Approx. Equiv.
Price
Annual Rate
98.838
98.814
98.820

2.298$
2.346$
2.333$ y

78 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:
Accepted
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
$
26,142,000
1,579,957,000
23,288,000
40,314,000
9,864,000
14,881,000
155,487,000
16,036,000
11,721,000
19,633,000
30,869,000
83,676,000
$2,011,868,000

Accepted
\1 Applied For
$
26,142,000 j• B
2,193,000 $ 1,943,000
698,357,000 :i
881,639,000 431,138,000
11,888,000 J:
7,563,000
2,563,000
25,014,000 :r
16,129,000
11,129,000
9,764,000 s\
1,875,000
1,373,000
13,181,000 :t
6,710,000
6,310,000
87,777,000 :
64,090,000
14,260,000
15,036,000 :J
4,604,000
3,489,000
7,501,000
4,148,000
1,648,000
18,633,000 !
6,262,000
4,643,000
10,869,000 :
6,191,000
3,041,000
76,176,000 :
29,423,000
18,945,000,
$1,000,338,000 a/' $1,030,827,000 §500,482,000 b/

Includes $165,857,000 noncompetitive tenders accepted at the average price of 99.$
%J Includes $33,026,000 noncompetitive tenders accepted at the average price of 98.820
_/ On a coupon issue of the same length and for the same amount invested, the return 0
these bills would provide yields of 2.19$, for the 91-day bills, and 2.39$, for t
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return related to the face amount of the bills payable at maturity rather th*
the amount invested and their length in actual number of days related to a 360-da
year. In contrast, yields on certificates, notes, and bonds are computed in term
of interest on the amount invested, and relate the number of days remaining in ar
interest payment period to the actual number of days in the period, with semianiw
compounding if more than one coupon period is invel-^d

49 A
E»_£___J_g__s_____3_

____2-

U s t awtigig thst ihs tenders f o r two sprigs of
freaeury bill», one sarias to be an addition! isaue of the bills *mt*(t a e p i ^ e r U ,
L96C, *nd tUt other mvim U mm dated December ft» lflto, vteUli *•*• offarei on
jteassfosr 16, were opaaad «t tha Federal Wmmmvm Saatai on tmmm®? 23* frnMrnm mm inrited for 11,000,000,000, or thereabout*, ©f 9l«4*¥ bills a * far 4500,0^,000, or
ibouta, af 182-day b U l « . The details of the two aarias are aa follows91-d&y Treasury bills
mM.1 OF ACCSPTES
102*4&3f ttmmwt? tux*
„turln«
Ksrch
>0,
lj>61
M V I t m i l SZBtt
B * »J_ "'"
»r<Mt. _<{&&¥•

High

99.464

Average

2.120s:
2.ieo$

|t.tjl

S*SMI
2.346^

i.m%y

M S * 1/

it of 91-day bills bid for at the 1 ^ pries
of 162-day bills cid far m% Mm Im price wss adapted
10BU 1SMKBS AOTJ3SB F08 AMD A M M E D SI n E M U L n « m BXSftiefSt
trict

mm worn
Philtdelpi
Cleveland

Atlanta
Chicago
it, Louis
mmm

City

San Francisco
fOfALS

?^_5
AtSTffMtfOQO
23,286,000
40,314,000

9>m$®m
14,861,000
10fWTfOOO
16,036,000
l»,43StO0O
3® f §# # 00®

Applied for
«pa9jfT#ooo
n,see,000
25,014,000
t?»m»ooo
iSfos}6tooo
7«fa»ooo
!0,I#,O®O
•am *ajt^iiHia^aiag

#1,000,338,000

16,129,000
1,8?5,000
*t?&Moo
64,0^0*000

6,191,000

H,Xtf,000
1,371,000
6,310,000
14,260,000
SjmfB.mB
1,41,000
^,643,000
3,04l,OCO

ifeBlff

Includes 1165,857,000 noneomoetiUve tomtkmm mmw®M* at mm mmmm
prim of 99.457
Includes $33,026,000 noncompetitive tenders accepted at Mm jrvafaga priaa of fS.Sf©
On a eoupos Mmm mi tha mmm length ani for the sang® a w i l laves ted, fee return m
Mmm M U i « M _ U pravS4a yialda of f .190* f#* Mm n«Bmy W X U u mm f .Iff, fur tha
ie.-afey bill*. Interest rates on biiia sre quoted in terms of teak discount wltn
the intern related to the tmmm amount of th*fcilisyAyable at r^turity rather than
the aaount iavaatad mad their laagth in aetnal inwisaF of limya r*l*tad to a 360-day
yaar. In contract, yields on aartifiaataa, mMm9
&i*$ hoMm mm mmmmUB is %mrm
of interest on the amount lirvaatwl, mi* mUU
Mm- anaftwr of 4&„m raaftialas ia an
lutaraat papist period to Mm motml tmrnom mi digra in tha partod, w i ^ semiannual
.if aiara tliait m m ®@®pon pmrU* %m AwmlAmB.

INDIVIDUAL INCOME TAX RETURNS F0R1959
2^
Number of Returns, Adjusted Gross Income, Selected Sources of Income, and [ncome Tax,
for 1959, Compared with 1958 and 1957
1959

1958
(Millions)

1957_

60.3
$305,760.6

59.1
$281,154.1

59.8
$280,320.6

52.9
$247,201.6

51.6
$227,550.6

52 6
$228,076.'9

5.9
$ 10,294.2

5.1
$ 9,057.8

5.1
$ 9,432.1

9,4
$ 4,542.3

7.4
$ 3,659.2

7,3
$ 3,319.0

47.5
$ 38,899.7

45.7
$ 34,335*7

46.9
$' 34,393.6

Percentage Increase in 1959 Over —

____

1957

Number of returns
Adjusted gross income
Salaries and wages:
Number of returns
Amount
Total domestic and foreign dividends received:
Number of returns
Amount
Interest received:
Number of returns
Amount
Income tax after credits:
Number of taxable returns
Amount

2.0

0.8

Number of returns
Adjusted gross income
Salaries and wages:
Number of returns
Amount
Total domestic and foreign dividends received;
Number of returns
Amount
Interest received:
Number of returns
Amount
Income tax after credits:
Number of taxable returns
Amount

Sources:

9.1
2.6

0.6
8.6

8.4
15.8

15.8

9.1

13.7
26.2

28.3
36.9

24.1
1.4

4.1
13.3

13.1

1959, advance statistics in Tax Analysis of individual Income Tax Returns
1958 and 1957, complete Statistics of Income, individual Income Tax Returns

Internal Revenue Service
Statistics Division
December I960

TREASURY DEPART

____

WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, December 22. I960.

A-1011

The following identical letter has been sent to the Chairmen and
ranking Minority members of the Senate Finance Committee and the
House Ways and Means Committee:
December 22,i960
Dear
The enclosed advance data from Statistics of Income for
1959 individual income tax returns filed during 190O show
significant increases over the two prior years in the number
of returns reporting interest and dividends. There were
also sizable increases In the amount of dividends and
interest reported. Although the advance data may be revised
somewhat when the complete Statistics of Income becomes
available, our experience in previous years Is that little
change occurs in the dividend and interest items. These
statistics indicate a considerable degree of success for
the first year of the Treasury's concerted drive to improve
taxpayer reporting of dividend and interest income.
The enclosed table shows for 1959 that 5.9 million
returns reported $10.3 billion in dividends. This
represents a 16 percent increase over 1958 in the number
of returns reporting dividends and a 14 percent increase
over Of
theeven
samegreater
period importance,
in the dollar
of dividends
inamount
my opinion,
is the fact
reported.
that the table shows for 1959 that 9.4 million returns
reported $4.5 billion in interest. This is an increase of
26 percent over 1958 in the number of returns reporting
interest and an increase of 24 percent over the same
period in the dollar amount of interest reported.
It is the present intention of the Revenue Service to
issue a press release containing these and other data from
the 1959 returns shortly before the end of the year. I
thought, however, that you would appreciate receiving this
information since it releates so closely to our previous
discussions concerning dividend andSincerely,
interest income.
/»/

Fred C.Scribner, Jr.
Fred C. Scribner, Jr.
Under Secretary of the Treasury

Enclosure

TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
rhursday, December 22, i960.

^ ^ ^ Z

A-1011

The following identical letter has been sent to the Chairmen and
ranking Minority members of the Senate Finance Committee and the
House Ways and Means Committee:
December 22,i960
Dear
The enclosed advance data from Statistics of Income for
1959 individual income tax returns filed during 190Q show
significant increases over the two prior years in the number
of returns reporting interest and dividends. There were
also sizable increases in the amount of dividends and
interest reported. Although the advance data may be revised
somewhat when the complete Statistics of Income becomes
available, our experience in previous years is that little
change occurs in the dividend and interest items. These
statistics indicate a considerable degree of success for
the first year of the Treasury's concerted drive to improve
taxpayer reporting of dividend and interest income.
The enclosed table shows for 1959 that 5.9 million
returns reported $10.3 billion in dividends. This
represents a 16 percent increase over 1958 in the number
of returns reporting dividends and a 14 percent increase
over the same period in the dollar amount of dividends
reported.
Of even greater importance, in my opinion, Is the fact
that the table shows for 1959 that 9.4 million returns
reported $4.5 billion in interest. This is an increase of
26 percent over 1958 in the number of returns reporting
interest and an increase of 24 percent over the same
period in the dollar amount of interest reported.
It is the present intention of the Revenue Service to
issue a press release containing these and other data from
the 1959 returns shortly before the end of the year. I
thought, however, that you would appreciate receiving this
information since it releates so closely to our previous
discussions concerning dividend and interest income.
Sincerely,
/s/ Fred C. Scribner, Jr.
Fred C. Scribner, Jr.
Under Secretary of the Treasury
Enclosure

INDIVIDUAL INCOME TAX RETURNS F0R1959
lumber of Returns, Adjusted Gross Income, Selected Sources of Income, and Income Tax,
for 1959, Compared with 1958 and 1957
-

1959

1958
(Millions)

1957
r

dumber of returns
Adjusted gross income
Salaries and wages:
Number of returns
Amount
Total domestic and foreign dividends received:
Number of returns
Amount
Interest received:
Number of returns
Amount
Income tax after credits:
Number of taxable returns
Amount
Percentage Increase in 1959 Over — Number of returns
Adjusted gross income
Salaries and wages:
Number of returns
Amount
dividends received:
Total domestic and foreign <
Number of returns
Amount
Interest received:
Number of returns
Amount
Income tax after credits:
Number of taxable returns
Amount

60.3
$305,760.6

59.1
$281,154.1

59/8*
$280,320.6

52.9
$247,201.6

51.6
$227,550.6

52.6
$228,076.9

5.9

5.1

$ 10,294.2

9,057.8

"• 9=4
4,542.3

3,659.2

47.5
$ 38,899.7

5.1
$

9,432.1

3,319.0

7.3

7.4
45.7
$ 34,335.7

46.9
$ 34,393.6

1958

1957

2.0
SaS

0.8
9.1

2.6
8.6

0.6
8.4

15.8
13.7

15.8

2602
24.1

28.3
36.9

9.1

4.1

1.4

13.3

13.1

Sources: 1959, advance statistics in Tax Analysis ofp^ndjlvidual Income Tax Returns
1958 and 1957, complete Statistics of Income, individual Income Tax Returns
Internal Revenue Service
Statistics Division
December I960

ftmrtwr &, 19&>

Mr-, gt&rHr. CtalZMB:
immm t«x tmtom* Hint 4arla* W stew significant inerre&seg over Mm
tm prior years la the sa&@r of ittHN* mpos^ing Interest a M dl^ideiids.
„&$re were also disable increases in th*e amount of dividejjds asd inii&»$&
reported, iilthoum tts@ mSmmm fetft may be revised iscwytmt viicn the
msg&mim mmHiMm
of ..IjjBpy 1sec«^a ipmilj.Ma, « c a ^ n l a m ltt yevfiou*
J M U * is tbi* littk 'Wmm
oomm is th* toiieiia tad l a t a m * it**.
These statistics Indicate & eon^iderable degree of ^access for th» first
y®$a? of Mm tmmkw*r',m oaneosioA $Hm to ijqpra** taxgogwr sqfartiag of
OlirlAaBA m& Interest Saccno*
_bt ©gieXossea t®aal@ otam *oar X95f tittt 5*f att&ion x«tiix&» ttforM.
$10*3 bUlictt la ilvi&Mi&ft. 3_&* i®p«®»3t0 * 2Ml> jperoont immmm
mm?
i^a Sm 1£** ouriber of wsfamm m$m%$zm dtrManio «aft * 2& perc«at iaesms®
mm? mm M I fosrtflA in tHe io&tar omaft of dlTid.^Kls r e p o r t .
Of ©iren gjPBK&Mf I^@^te@^@# in. mf 0piiadU3&4t is th# ftecfc tsftt tia® t&ijX®
•Hot* far 1959 ttmt 9** M J i i m ' mmaam fopiriM # M ICUtai in iii&*Nfft»
9Bdm i# an iaefwutt of W6 $ta»a_& ower l f P is Urn syetef of *«t«m»
Mpovt&ag iiitos^st and aa inorooo* of at p@a?««if8fe osiw tbo mm pstioi. la
tbo dollar amount of ft&osoot r^iK^ted.
It %m Mm .pzoaait la&aaft&on. of Mm Wtmtmm Mmim to loouo * p»#
releai^ ccmtalisin^ tfemo tw& other d#ta f & » ife* 1959 retens gbortly
fettim tb* end of tb* jremr. I l&oatfst* tensfw, tost joa «oiU4 irottfteitft*
%mm$mm
t^&® iaftoiaation. slaoo it Tol&tos S O ei«n*iy to oor pgwHmm
di5cuaslc.ES e^eeinUm dividend m& interest immm.

Ubtar Secretary €tf t3ue fe®a0i»y
laoanoa* mi^w ft. MUm

Qmxmm, m&m ®s* mmm Oandttoo
mmm of ®$p!mm^%im®
mmMM&m 23, ».. C.
Enclosure
FQS/HTR:3ef 32/22/60

- 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
October 6, i960, (91 days remaining until maturity date on
April 6, 1961)
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 January 5, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 5, 1961. 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 their issue. Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
•

•'"' "»

•

• ' • . ! . . •'

WASHINGTON, D

IMMEDIATE RELEASE,
Thursday, December 22, i960.

A-1010

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 January 5, 19^1, in the amount of
$1,500,195,000, as follows:
91-day bills (to maturity date) to be issued January 5, 196l,
in the amount of $1,000,000,000, or thereabouts, representing an
additional amount of bills dated October 6,1960, and to
mature April 6,1961,
originally issued in the amount of
$500,137,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated i
January 5, 196l, and to mature July 6, 1961.
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) . -r.
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Friday, December 30, i960. Tenders will not be
received at the Treasury Department, Washington. Each tender must
be for an even multiple of $1,000, a n d l n t h e °ase o f 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.

TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, iiOO PsM. > EQ_->
Thursday. December 22. 19fiQ_

A - "

/ 6/

£>

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> fo
&**
cash and in exchange for Treasury bills maturing
January 5, 1961 , in the amount
of $ 1,500,195,000 , as follows:
— r

91 -day bills (to maturity date) to be issued January 5, 1961 ,
in the amount of $ 1,000,000,000 , or thereabouts, represent-

5555
ing an additional amount of bills dated
and to mature April 6, 1961

October 6, 1960.

, originally issued in the

amount of $ 500,157,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
January 5, 1961 , and to mature July 6? 1961
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
hour, one-thirty o'clock p.m., Eastern Standard time, Friday, December 50, 1960
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

- 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 except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders are accompanied by
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the
Treasury Department of the amount and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary
of the Treasury expressly reserves the right to accept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for $200.000 or less for the additional
bills dated October 6, 1960 , ( 91 days remaining until maturity date on
April 6, 1961 ) and noncompetitive tenders for $lop QQQ 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 January s. 19fil >

in cash or

other immediately available funds or in a like face amount of Treasury bills maturing January 5, 1961 . 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 exeMptiotk^ as such, and loss

/::0

from the sale or other disposition of Treasury bills does not have any special

treatment, as such, under the Internal Revenue Code of 1954. The bills are subjec

to estate, inheritance, gift or other excise taxes, whether Federal or State, but

are exempt from all taxation now or hereafter imposed on the principal or 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, whet

on original issue or on subsequent purchase, and the amount actually received ei

TREASURY DEPART

I 1

i—m»

-T—a__er,___'».3Kn-"'=-"

WASHINGTON. D.C
RELEASE A. v. :_T.:S?AFERS. Tuesday, December 20, I960.

A-1009

The Treasury Departnent announced last evening that the tenders for two series oi
Treasury bills, one series to be an additional issue of the bills dated September 22,
I960, and the other series to be dated December 22, I960, which were offered on Deceaber 14, were opened at the Federal Reserve Banks on December 19. Tenders were invited
for 31,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereat
of 183-day bills. The details of the two series are as follows:
RAISE OF ACCEPTED
CC>~?_I_TI7_ BIDS:

High
Low
Average

91-day Treasury bills
maturing March 23, 196l
Approx. Equiv,
Price
Annual Rate

99.kk9
99.433
99*438

2.180£
2.2432
2.2222 1/

183-day Treasury bills
maturing June 23, 196l
Approx. Equiv.
Price
Annual Rate
98.800
98.780

98.784

2.361*
2.4002
2.3922 1/

31 percent of the amount of 91-day bills bid for at the low price was accepted
77 percent of the amount of 183-day bills bid for at the low price was accepted

TOTAL TZKDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Applied For

Accepted

Applied For

Accented

$
32,106,000 1
31,656,000
$
6,533,000 $ 6,004,000
354,983,000
673,507,000
1,434,657,000
875,744,000
2,2ii4,000
12,034,000
27,334,000
7,594,000
20,874,000
29,507,000
60,282,000
31,704,000
8,088,000
13,205,000
13,375,000
8,096,000
4,876,000
18,842,000
23,342,000
5,327,000
34,508,000
116,669,000
183,382,000
65,561,000
4,930,000
26,420,000
29,390,000
5,430,000
2,388,000
14,969,000
17,969,000
5,003,000
8,11*9,000
37,351,000
44,381,000
13,949,000
4,910,000
13,831,000
48.141*,000
113,186,000
13,891,000
5,6n,ooo
119,321,000 $1,101,177,000 a/ $1,083,932,000
53,380,000 $500,098,000;
$1,999,430,000
a/ Includes ?234,001,000
noncompetitive tenders accepted at the average price of 99.H
£*/ Includes $53,183,000 noncompetitive tenders accepted at the average price of 98.7$
l/ On a coupon issue of the same length and for the same amount invested, the return
""
these bills would provide yields of 2.272, for the 91-day bills, and 2.1*62, f°? '
183-day bills. Interest rates on bills are quoted in terms of bank discount wit!
the return related to the face amount of the bills payable at maturity rather tto
the amount invested and their length in actual number of days related to a 360-d
year. In contrast, yields on certificates, notes, and bonds are computed in ten
of interest on the amount invested, and relate the number of days remaining in a
interest payment period to the actual number of days in the period, with semi--1
compounding if more than one coupon period is involved

jgisn A. *. wmnm®.

fmmmm7. Potssrtttr M> xm.

fha fraasury ftmpmrtmmt mmm&mm4 last ovsaiag that th® tenters for two series of
raasury M i l s , one ssriss to ha aa additional Umm of iha bills «kt«& Saptamfesr 22,
fBo9 and the ©tliar sort** to mm datad mmmhmr
229 I960, whieh wara offeror on Decemir lit, wars ©pensd At the Federal !!e»«r~e Banks on December 19. faadars were invited
»r $1,100,000,000, or th«raab@«ta, of 91-tey M i l s **«t f®r $500,000,000, or ttsaraahoats,
f li3-tey ©ills, this tetails of Ma® %m series are as folic**®*
M B * OT ACCEPTED
183-day Treasury bills
91~tey
oillo
—turlag Mm 23. 19&I
''"'"UJ """ ' "" ' ilpproju *6quir.
£__&
Frioe
Awsssl tote
2.m$
^a.soo
2.m%
Low
u.km$
9B.1BQ
UtkBt
Average
2*392$ y
9B.7Bk
99.m
2.222% y
II percent of the awount of 91-day bills bid for at the 2m price was accepts
t percent ot the anew* of XS3*4ay hills hid Jfer at the law priaa was aee«f>test
MIU'I.I

•••UKI'IIHlMMIilii

.U»

. . . M - n . i . , i ,,,,1,1, in.illi.l. *».,».,i. •••

«».

n.m

U N U T S U & 8 AFK*HD FOft AID A e W T S D SI F B M U L RESERVE IttSTSJJCTSi

MS*

lew Tork
Philadelphia
Cleveland
Pich-onri
Atlanta
Chicago
St. Louis
City

i,43MS7»ooo

Bn9m§m®

,000 i*ia000
***%§*»
i?5 ?IOi,ooo 3S4,9S3,OO0

f
17,31^*000
17,034,000
t,aUi,ooo .
7,Sfii,ooo
60,^82,000
29,107,000
20,874,000
31,704,000
13,375,000
13,205,00©
8,066,000
6,0^6,000
$3,342,00©
H t tt2 # QQ0
4,076,000
5,3t7,000
X83,3§t,O0O
116,669,000
34,508,000
29,390,000
65,S£*,ooo
?6,l4?0,000
4,930,000
17»«4f,000
S,It30,ooo
UuttMOO
2,388,000
13,831,000
44,361,003
£,003,000
37,351,000
San Francisco
0,1*9,000
H3,lMtO0O
_ _
13,891,000
13,949,00©
,000 11,101,177,000 y $1,083,932,000
4,9io,ooo
#1,999,430,
5,611,000
ftl44tO0O
/ Include® 1234,001,000 Mmeqpetltive tenders aeeapted at the mmm** priee ot4899.438
ISoo,098,ooo
f Includes #53,183,000 nemompetiiive tenters mmm/mM* at the average price of BB.lBky
I O B a coupon issue of the sane length and far the saw© amount imraatad, the return an
these © U l e would provide yialte of 2.273*, ftwr the 91-«§ay hllla, and, ST.^M, for tfea
183-day bills. Interest rataa on billa mm q\iot«d in tarms of basilc discount with
tha return related to the faaa amount of the bills payable at maturity rather than
the amount invested and their length In actual %%mbmr of days related to a 360-day
ymmr. In contrast, yields on certifieatee, notes, and bonds are cowputad in taraia
»f
intareat on
the amount
imrested,
and ralata
tha iKmb«r of days remaining in an
ao-poundin^
if mora
than one
•ovpon period
is inmlvwl.
interest payment period to tha actual mmbmw of days in tha period, with semiannual

STATUTORY DEBT LIMITATION

-^ -

AS OF _J__veivbej:J_3__1960

Tlpr

lMj1Q/:ft

Washington, J ^ J L - _ ± Z £ l _ D l L _
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
>f that Act, and the face amount of obligations guaranteed as to principal and interest by the United States ^/J^1*^* #Wt"
inteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate 5285,000,000,000
[Act of June 30, 1959; U.S.C., title 31, sec. 757b), outstanding at nny 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 ot the holder
shall be considered as its face amount." The Act of June 30, I960 (P.L. 86-564 86th Congress) provides that during the period
beginning on July 1, I960 and ending June 30, 1961, the above limitation (1285,000,000,000) shall be temporarily increased by
$8,000,000,000.
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 he outstanding at any one time
« P w J i vUU,U(J0,()(){
Outstanding'
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing :
Treasury bills $39 .W ^5. 000
Certificates of indebtedness

_0» t K*'l,027 ,OUU

Treasury notes

51.226.1^.000

BondsTreasury
* Savings (current redemp. value)

$109,122,260,000

79,668,038,350
Q( tyy^t^/^-yiJ&y

Depositary.

117,^07,500

R.E.A. series
Investment series

9 ,339 ,000
6.23.6.596,000

Special FundsCertificates of indebtedness

_...

Treasury notes
Treasury bonds
Total interest-bearing

133.^05.706,233

7,299,051,000
9,72^,122,000
27,537,385,000

Matured, interest-ceased

¥ K 560 , 558 , 0 0 0
287,088,52^,233
yyO t~Jy

Bearing no interest: _
•
United States Savings Stamps
r
,,
,
f
fcxeess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series

.025

50 9 5 9 9 3 1
-' * - ,
761,602
'
*
2,458,000,000

,57 < 6 ^,?00 .

•post Iixt.develop* t Ass• n

Total.;*..7"*r."^r;v.'.v:'.'::.;..:

2,567,373,73?

290,012,130,991

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.<?;..JXJ..JS.tad.™i E d s 1 5 2 , 1 1 9 , 9 0 0
Matured, interest-ceased
937.000

1£3,0^6,900

?.90tl65,l8?__;

Grand total outstanding
Balance face amount of obliga cions issuable under above authority

•

• i. c

2 , OJrr»o JX. <

i ,u o K»;~ r, k, Koveriber 30, I960

Reconcilement with Statement of the Public Debt

. ,„

T.....Z.
(Dnte)

November 30, 19^0

(Daily Statement of the United States Treasury,
(Onto)
Total gross public debt
OutstandingGuaranteed obligations not owned by the Treasury.....
Total gross public debt and guaranteed obligations.
Deduct - other outstanding public debt obligations not subject to debt limitation

)

290,^1^.U^»^
i^X-^-1^
290,-' *
L*£
*f01Pl,^- X ^

290,165, 1 ™ I&'

A-1008

STATUTORY DEBT LIMITATION
AS OF _November 30. I960

Washington. D e c . ±y s I 9 6 0
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under authority
of that Act and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $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 rebeginning on July
$8,000,000,000.
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
$293,000,000,000
Outstanding*
Obligations issued under Second Liberty Bond Act, as amended
Intereshearing:
Treasury bills $39,454,485,000
Certificates of indebtedness
Treasury notes

18,441,629.000
51.226.146,000

BondsTreasury
,
* Savings (current redemp. value)
Depositary.
R.E.A. series
Investment series

$109,122,260,000

79,668,038,350
^ 7 ,39^.325.yOy
W

,407 ,500
9,339,000
6.216.596,000

Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
Total interest-bearing
Matured, interest-ceased

1 3 3 ,405 ,706 , 233

7,299,051,000
9,724,122,000
27,537,385,000

Bearing no interest:
United States Savings Stamps

50,959,93-1-

Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series

44.560.558,000
287,088,524,233
3 5 6 , 2 3 3 ,025

fO_»OU£
2,458,000,000

USK* .T^t.JQevelpp«t.Ass'n
Total

.Sl.t&5&.»200,
2,567,373,73?
290,012,130,991

Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F . H . A . & . i X L & t & t o m B d S 1 5 2 , 1 1 9 , 9 0 0
Matured, interest-ceased..
Grand total outstanding

937,000

153.056,900
290,165,187,891

Balance face amount of obligations issuable under above authority,

2,OJrr,oJ.2,J.U7

Reconcilement with Statement of the Public Debt ..?.9!?.®?!?*?®?...?.9.!...i?».9
m

, . „ tA c,

November"^, I960

(Daily Statement of tne United States Treasury,
,
;
Outstanding'
<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

)
290,4l4,11.4,993
15J ,05O>7OO
2 9 0 ,5^7 ,171.893
*K)1,9 OH-,002

290,165,187,891
A-1008

- 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
September 29,i960, (91 days remaining until maturity date on
March 30, 1961)
and noncompetitive tenders for $ 100,000
or less for the 182-day bills without stated price from any one
bidder villi 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 December 29, i960,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 29,1960.Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the Issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 195^+ - The bills are subject to
estate, Inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount 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;.

TREASURY,DEPARTMENT
WASHINGTON, D

IMMEDIATE RELEASE,
Friday, December 16, i960.

A-1007

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 December 29*i960, in the amount of
$1,501,766,000, as follows:
91-day bills (to maturity date) to be issued December 29, I960,
in the amount of $1,000,000,000, or thereabouts, representing an
additional amount of bills dated September 29,I960,and to
mature March 30, 1961, originally issued in the amount of
$^99,96O,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
December 29, i960,and to mature June 29, 1961.
The bills of both series will be issued on a discount basis unde
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount will be payable without interest.
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value),
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time,Friday, December 23,1960 . 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 fro»
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 bani
or trust company.

ffliMxxxxa.

233

BXmXXI_a_X_X_JDC
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4:00 P.M., EST
Friday, December 16, I960

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 December 29, I960 , in the amoun
_ ^

of $ 1,501,766,000 , as follows:
91 -day bills (to maturity date) to be issued December 29, I960 ,
in the amount of $1,000,000,000

or thereabouts, represent-

—w—
ing to
an mature
additional
amount
bills dated
September
29, in
I960
and
March
30, of
1961
, originally
issued
the,
amount of $U99,960,000

, the additional and original bills

pa?
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
December 29, I960 , and to mature June 29, 1961 .

___g

jEgr

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

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

- 2 -

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 September 29, I960 , ( 91 days remaining until maturity date on

p*? -s?r
March 30, 1961 ) and noncompetitive tenders for $ 100,000 or less for the
182 -day bills without stated price from any one bidder will be accepted in fall

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 December 29, I960 , in cash or

other immediately available funds or in a like face amount of Treasury bills matu
ing December 29, I960 . Cash and exchange tenders will receive equal treatment.
Z_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 exem^ffcin©^ as such, and lo

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