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i*4
LIBRARY
ROOM 5030
J UN I 5 1972
TREASURY DEPARTMENT
1
Tha Traaaury Papartaaat anmo^aetd laat avaaiag that tha taadara for tiro series of
Treasury M i l ® , one aariaa to be an additional issue of tha bills dat«£ October 27, 196
and tha othar aarlaa to ba datad £awia*y 26, 196l, afeiah .aara affarad on January 1$, vt
opanad at tha Fadaral Mmminm 8aalca on 4anoary 23 • Taadara war® imdtad for §1,100,00$
or tharaabcratis, of 91-day M i l * aad far 1500,000,000, or tharaabouts, mt l6**4ajr bill®.
The details of tha two ©aria® are as followst
M M d l 0? AOGEFflU
91-day Traaamry ©ills
Ut-day fraaaaty billa
27, g1961
OOfffiTITIfE SIBSt
maturing April 27, 1961
maturing Jmly 2?,
Appro*. Equir.
Appro*. Eajiiiiv*
Prioa
Aqpal. tatai[ t
Prlaa
Animal lata
Sigh
91,190
2.393%
2.196*
99.y*5
Low
98.77©
2.1*33*
S.fSltf
99.1*31
A~arag«
98.71®
2.1*22* 1/
2.834* J/
mmi
87 peroant of tfea
It pavaaaft of tha
IIHIII.II
NiiiiiiiniTiTiin i
i l i i h . I ^ « M W W W M I » I I « I ) Iffii.ii.ii.iiMIIII>I m i i » n IIIIIIIIWII
of 91*4ay ©ill® bid for at tha Ion prioa w&a aeeaptad
of llt-day bill® U d for at tha Im prioa was aeeaptad
TOTAL TKMpERS A r Y U E B IQR AID ACCEPT© IT FiJ;£Ml* BSSSBI8 I&STBieTSt
Blatrlot
1
Hilol"
''
Aeaaatad
r toaias
_______________
Acceptod
865,694,000
362,95^,000
13,01*8,000
5,^0,000
737»Qfaft»O0Q
19,357,000
lli,357,000
12,Ii39,§00
3,ii21,000
3,1*21,000
28tf4j|f000
9,397,000
lt,77a,0OO
lk,125f*00
82,587,000
36,727,000
ft,171,000
«j93?»000
!*,lt32,0O0
159,959,000
1,807,000
2,007,000
tl,!i56900O
6,lJt?,OO0
5,Slt7,ooo
8,02fetOOO
6
lAk»O0O
#
f0»5JfB,000
3,i8J*,0OO
•MQO,0t8,00O
1 5 , M 9 , Q O O £ / #1,081,602,000
a9_yri.ooo
to,9t».ooo
1500,051,000 y
Xaeladaa 1206,770,000 noaftaa-patltlva taadara aooaptad at tha a w a g a prlaa of 99Jk3f
Xoclitdag $10,305,000 ooaeoiBjsatitiira taadara aeeaptad at tha araraga prlaa of 98.776
0& a aovqpan issue of tha aa»a laii^tis sni for th® @me amount invastad, tha ret.rn oa
tfaaaa billa woald proirida ylalda of 2«a7jf, for tha 91-<Say bills, and f M$» for thi
182-ifay bill®. Xataraat m&m om billa art «niotad in t a m a of ba»k discount with
tha r®%®m ralatad to tha fac® aaouat of tha bill® fajrabla at natarlty rathar ^iaa
tha miomist invaatad and thair laagth in aataal n^bar of day® ralatatV to a 360-day
^a&r. In aootraat, yialda on cartifioataa, aotes, ami bonds ar© co-putad in taraa
of interest on tha aaouat Invested, &m relate tha rramb^r ©f days remaining In an
intaraat papiai^t pariod to tha aoteal iwabar of* days in tha period, with ®@§?i&niaia2
conpomidiiig if'jmirpt tha/: om ooupoa pariod la invol~ad.
Ha%? Tark
fhliadalphia
Clavalaad
Uafamond
Atlanta
Ohioago
St. Louts
Piantapolia
gaaaaa City
Dallaa
Bmn Franeiaoo
TOTALS
I
Applied For
fc 30,151,00©
I,lt96,ltf2,000
27,439,000
£8,968,00©
lfi,13$f000
22,821,000
220,739,00©
22,ii*6*QQQ
13,i2i&,000
2*,lfa8fO0O
18,1459,000
63,88fc,000
11,985,1*36,000
(y
Lil
TREASURY DEPARTMENT
W A S H I N G T O N , D.C.
RELEASE A. M. NEWSPAPERS, Tuesday, January 2k, 1961.
D-l
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 27, I960,
and the other series to be dated January 26, 196l, which were offered on January 18, wer<
opened at the Federal Reserve Banks on January 23. Tenders were invited for $1,100,000,(
or thereabouts, of 91-day bills and for 1500,000,000, or thereabouts, of 182-day bills.
The details of the two series are as follows;
RANGE OF ACCEPTED
COMPETITIVE BIDSt
High
Low
Average
91-day Treasury bills
maturing April 27, 196l
Approx. Equiv.
Price
Annual Rate
99.105
99.1*31
99.1*36
2.196$
2.251$
2*230$ 1/
182-day Treasury bills
maturing July 27t 196l
Approx. Equxv,
Price
Annual Rate
98.790
98.770
98.776
2.393*
2.1*33*
2.1*22* 1/
87 percent of the amount of 91-day bills bid for at the low price was accepted
57 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS j
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS '
Applied For
|
30,151,000
1,1*96,1422,000
27,1*39,000
28,968,000
ll*,125,00Q
22,821,000
220,739,000
22,1*56,000
13,82l*,000
26,ll|8,000
18,1*59,000
63,881*, 000
$1,985,1*36,000
Applied For
1
7,007,000
865,69l*,000
13,01*8,000
19,357,000
3,1*21,000
9,397,000
82,587,000
1*,932,000
i*,807,000
6,11*7,000
6,l81+,000
i5,l*59,ooo
59,021,000
1*1,929,000
$1,100,028,000 a/ $1,081,602,000
Accepted
17,108,000
737,01*2,000
12,1*39,000
28,968,000
Hi,125,000
22,171,000
159,959,000
21,1*56,000
8,82l*,000
20,51*8,000
Accepted
$ 6,807,000
362,951*,000
5,1+68,000
H*, 357,000
3,1*21,000
U,776,000
36,727,000
1*,1*32,000
2,807,000
5,5i*7,ooo
3,181*,000
1*9,571.000
$500,051,000 b/
a/ Includes $206,770,000 noncompetitive tenders accepted at the average price of 99.U36
5/ Includes $1*3,305,000 noncompetitive tenders accepted at the average price of 98.776
1/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.27*, for the 91-day bills, and 2.1+9*, 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
confounding if more than one coupon period is involved.
__..... _
jy __ 2
fraaamry Saaratary Beaglta tillon has designated
Thaodora U laiot, Jr. as Spaalal Asilstant to tha Sao rotary,
XT. Eliot haa aar^ad in a similar aapaaity slnea
1959 whan ha was si»i>ointad aa Ipaaial Assistant to
m. Dillon, than Undar Saaratary of ftato, Mr. Eliot ia
a mm1-*®* of tha $, B. foraign 3#rriaa and has %nm
datailad to tha treasury.
Ia entarad tha Foralgn Sanrlaa in lf%9 and haa mrvoA
in ®aylon and in aoaaany and, dmring tha parlod of 1956^53,
at tha Amario&n Xnbsssy in ffoaaoir. Ha holds dagraas of
Baohalor of Arta and Hastar of Bt&lla Administration from
Harvard. Ha was tern in mm fork City January £4, 1928,
and attandad sahoola In Haasachuaattg and tha Watriat of
Columbia hafora antanng Harvard.
Mr. Eliot ia marrisd to tha foasar Patricia Patars of
San Frsnalsoo, California, fliay haira four ahildran
agaa 3 to 9 and raalda at 6601 Virginia Tlaw Court in
Washington.
0O0
TREASURY DEPARTMENT
WASHINGTON, D.C
IMMEDIATE RELEASE,
Tuesday, January 24, 1961.
D-2
Treasury Secretary Douglas Dillon has designated
Theodore L. Eliot, Jr. as Special Assistant to the Secretary,
Mr. Eliot has served in a similar capacity since
1959 when he was appointed as Special Assistant to
Mr. Dillon, then Under Secretary of State. Mr. Eliot is
a member of the U. S. Foreign Service and has been
detailed to the Treasury.
He entered the Foreign Service in 1949 and has served
in Ceylon and in Germany and, during the period of 1956-58,
at the American Embassy in Moscow.
He holds degrees of
Bachelor of Arts and Master of Public Administration from
Harvard.
He was born in New York City January 24, 1928,
and attended schools in Massachusetts and the District of
Columbia before entering Harvard.
Mr. Eliot Is married to the former Patricia Peters of
San Francisco, California. They have four children
ages 3 to 9 and reside at 6601 Virginia View Court in
Washington.
0O0
2^"
The purpose of the action is to screen and check all matters submitted
to the Secretary and Under Secretary for completeness and conformity with
established standards of presentation, and to insure responsiveness in al
departmental un^3.
TREASURY DEPARTMENT
WASHINGTON
FOR IMMEDIATE RELEASE
TUESDAY,JANUARY 24, 1961
A
Treasury Secretary DouglasJDillon today announced the establishmenl
in the Office of the Secretary^an Executive Secretariat. Attached is
Treasury Department Order No. 170-6 of January 23. /4C/^
pTbj^urjgp^e p£ thJM action jj^t© insurejp
PfffTt isnan^^o^Jfert^.
_^he^aftjjBiror
h
t
l
n es s \2^^*^Kcmif itj
IH_SSSP''^^f556t als
^^S^R
in
tl^l^y^^^^^^m
jTOflent agenoifs
to^r^ideW^
^s«^ ^^^ ^^^^^p»SaS^* *^
and tA^^uhl^rGT
!
a
u
Mr. Thomas W. Wolfe, Assistant Chief of the Debt Analysis Staff
has been named as Director of the Executive Secretariat. Mr. Wolfe
joined the Treasury as a fiscal economist in 1949. He has been Assistant Chief of the Debt Analysis Staff since 1958.
Mr. Wolfe was born in Boston, Massachusetts, May 5, 1919, attending
public schools there. He served in the United States Army Air Force
from 1941 through 1945. He received a Bachelor of Arts degree from
Columbia College in 1948 and an M. A. in Economics from Columbia University in 1949.
Mr. Wolfe is married to the former Patricia Ann Howley of New York
and now resides in Kensington, Maryland. They have a son, Thomas
Brendan Wolfe, age 2.
7
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, January 24, 1961.
D-3
Treasury Secretary Douglas Dillon today announced the
establishment in the Office of the Secretary of an Executive
Secretariat. Attached is Treasury Department Order
No. 170-6 of January 23, 1961.
The purpose of the action is to screen and check all
matters submitted to the Secretary and Under Secretary
for completeness and conformity with established standards
of presentation, and to insure responsiveness in all
departmental units.
Mr. Thomas W. Wolfe, Assistant Chief of the Debt
Analysis Staff has been named as Director of the Executive
Secretariat. Mr. Wolfe joined the Treasury as a fiscal
economist in 1949. He has been Assistant Chief of the
Debt Analysis Staff since 1958.
Mr. Wolfe was born in Boston, Massachusetts, May 5, 1919,
attending public schools there. He served in the United
States Army Air Force from 194l through 1945. He received
a Bachelor of Arts degree from Columbia College in 1948 and
an M. A. in Economics from Columbia University in 194-9.
Mr. Wolfe is married to the former Patricia Ann Howley
of New York and now resides in Kensington, Maryland. They
have a son, Thomas Brendan Wolfe, age 2.
0O0
THE SECRETARY OF THE TREASURY
WASHINGTON
January 23, 196l
Q
TREASURY DEPARTMENT ORDER NO. 170-6
There is hereby established in the Office of the Secretary an
Executive Secretariat. The Executive Secretariat vill ba the central
coordinating staff of the Department serving the Secretary and the
Under Secretary. Its purpose is to screen and check all matters submitted to them for completeness and conformity with established standards
of presentation, and to insure responsiveness in all departmental units
to the vishes of the Secretary and the Under Secretary.
In carrying out this responsibility, the Director of the Executive
Secretariat vill, among other duties:
a. Review all material submitted by departmental units for
the attention of the Secretary and Under Secretary to
insure completeness and proper coordination;
b. Review for assignment of action all Incoming official
correspondence for the Secretary and Under Secretary;
c. Attend key meetings with the Secretary and Under Secretary
to assure completeness of action assignments made;
d. Assure proper oral and/or vritten briefing of the Secretary
and Under Secretary for their appointments with the President,
meetings of the Cabinet, NSC and similar engagements, and for
official visitors calling upon them; and
e. Maintain direct liaison with the White House Staff Secretary
as the principal Department channel to the White House.
All action papers, correspondence, staff studies and memoranda,
and similar material submitted by departmental units for the attention
of the Secretary and Under Secretary vill be routed through the Executive
Secretariat for review and approval.
- 3 Q
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, bu
are exempt from all taxation now or hereafter imposed on the principal or inter
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whic
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am
of discount at which bills issued hereunder are sold is not considered to accru
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in hi
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retur
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 MR5rB_-0-____-<: - ^
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incorp
rated banks and trust companies and from responsible and recognized dealers in
ment securities. Tenders from others must be accompanied by payment of 2 percent
the face amount of Treasury bills applied for, unless the tenders are accompanie
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submit
ting tenders will be advised of the acceptance or rejection thereof. The Secreta
of the Treasury expressly reserves the right to accept or reject any or all tend
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $200,000 or less for the addition
hills dated November 5, 1960 , ( 91 days remaining until maturity date on
pixjc
pe^c
May 4, 1961
_) and noncompetitive tenders for $100,000 or less for the
1
^^
'
:x£-(x)c
182 -day bills without stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive bids for the respec-
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on February 2, 1961 , in cash or
x?__3c
other immediately available funds or in a like face amount of Treasury bills maturing February 2. 1961 Cash and exchange tenders will receive equal treatment.
xpaipE
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 am exemixticsu as such, and i0s
X3m_££Q___£
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, «:«>M.*ttfMik>&:«:#:*:ii!
Wednesday, January 25, 1961
5_gE
The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $1,600,000,000 > or thereabouts> f
X?_5c
cash and in exchange for Treasury bills maturing
of $ 1.400.610.000 >
as
February 2, 1961 t in the amount
follows:
91 -day bills (to maturity date) to be issued
£3}c
February 2, 1961
t
$_3c
in the amount of $1,100,000,000 , or thereabouts, represent-
ing an additional amount of bills dated November 5, 1960 t
„3_$r
and to mature
May 4, 1961
, originally issued in the
amount of $400,140,000 , the additional and original bills
$_85c
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
"T_53T
fc&fi*
February 2, 1961
C33£
> and to mature
August 5. 1961
.
3__3T
The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closin
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, January 50, 1961
xp_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
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
1 ">
•— 3 —
.,-A'[ L'.'.'L .' ' .il',m»l j M i | l l l M m n w < J."JI'JJliJI."l'.MCTIHJB!lllf.!rii!_.J
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, January 25, 196l.
D -4
The Treasury Department, by this public notice, invites tenders
*?rd^°/J5Srie5 o f T r e a s u r > y b i l l s to the aggregate amount of
$1,000,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing February 2, 1961, in the amount of
$1,400,610,000, as follows:
91-day bills (to maturity date) to be issued February 2, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated November 3,1960, and to
mature May 4, 1961,
originally issued in the amount of
$400,140,000,
the additional and original bills to be freely
interchangeable.
182 -day bills, for $500,000,000, or thereabouts, to be dated
February 2, 1961, and to mature August 3, 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). A
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 30,1961 . 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
br trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
November 3, i960, (91 days remaining until maturity date on
May 4, 196l)
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 February 2, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing February 2, 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
y,
WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
Monday, January 50, 1961.
D-f>
The holders of $6,938 million of 4~7/8$ certificates of indebtedness of Series A-196I, dated February 15, i960, maturing February 15,
1961, will not be offered preemptive rights to exchange their holdings
for new securities to be offered early next month. The maturing
certificates will be paid off in cash. Approximately $3,250 million of
the certificates are publicly held.
The necessary funds to pay off the maturing certificates will be
provided by an other issue, or issues, of direct Treasury obligations
offered for cash subscriptions. Subscribers to such new issue, or issues,
who hold the maturing certificates may, if they wish, deposit them at
face value in lieu of any cash down payments required with subscriptions.
To the extent subscribers are allotted the new securities, the Treasury
will accept the maturing securities in lieu of cash in making final
payments.
The announcement of the terms of the new issue, or issues, will be
made later this week.
-0-
14
mmss *. H. mmHi^m. twtey, »m*n », im,
tha tmmwtf
®0p&rtmm% ssassnss* last wwsifig tfett lbs tsstsm for to# a^riaa of
Trssswr M i l s , sas s*rt*»« te IM» aa sSWUUsstl la*** tff to* bills tete* mmmftm* 3, 1*
and tha olhar strlss te fea iatei fbbrssfy I, 1 P H , sfoisto w**t sffte** «s January IS,
vsrs apansd at tha Fadaral Hasarta m%$m on Jaaasaiy 30* tasters M M loHto* far
& ,100*000,000, or tfcsrssbsste, •£ 91-dsjr bills nasi tmt tfOO,000#000, or
of 102-day cilia * ffcta dateils of tfet te# ssrlss srs as foli®w»i
llt-day Treasury bills
91«4sjr fraaairy bills
feist
ftlfb
Ion
Avaraga
•6
WOilli
t.aiw
n.n*y
i.3SJi
m*7»
Many
SxcopUisg two tani#ra tetelins &,800,000
ptrttat of tot njwmfii ®f fl-tegr bills bit ibr at tbt lam prist waa assspteS
it parent #f the *mmm% mi M t * ^ r bill* bid for at th* low pric* vm
,
tQT»l T919tHS A^PUKD lt» A ® ACCK°TOB if flMMU. WStlfl DXSTKZGX81
HI?1
^aw Tsrlt
CltsSlsaS
'•UQhsaoixt
Atlanta
Chicago
St. ;-©uifi
ItSMatpslis
laaaass 0 %
Saa FraiicUco
T0KU3
_______LJt___
i w IS,ICS®
l,UO,fft»0Q0
t6,7**»OQO
t9,70f»,000
ia,i37,O©0
n,itt,oeo
alif,i5i*,oo0
tO,O81i,®O0
U*,3f3,000
k3,jt?,0OO
i*,7iMoo
Xaslwlss 1107,696*000
nomomvUtU®
W,qjl,000
tmlw&m
1^1,710,000
mmm^mUUv*
tt s <&jUQ»0tt
tht,33)9<K*
H,7iM00
2i*,70l*,000
ia,137,000
f0,33S#OOO
i*6,iitfooo
i§,l*oi§too0
10,W,000
3fe,3fl|(,000
X7,71l*,OO0
r mmm
6,586,000
XT«l0k»M0
J»,SM*ooo
5,221,000
13,310,000
Mf?,Q0»
7,0trf»000
15,»©,000
302,771,000
1#SS6#000
9,6ii4,00O
liJ5h7fOOO
4,371,000
40,6iiS,000
5,71*7,000
3,itW,000
7,b00,000
3,3W,000
i§oo,t7o,ooo«/
$,m
*m
$
a% Urn avaraga prlca of 99.US
ta^lara accepted
tmm®m aeeaptad a% 20,626,000
%h® avaraga pric® of 96.738
On a « « ^ a lamia «T tha aa»® Xtagtli aui far Hit aa«a»i,oit,m,ooo
a m m a t iav«t««if Urn mimm ©a
^ ® a a bills mmM prmM* yialda «T f»JU, far tt» fl-ilay b l U s , and B.SH9 f«p ti
lif«4t|r b i U a . XftftNPMt tataa an bills ara qaotad In t a m a af bank discount wi®
Urn ratu-n related ia tha ffea* asso^at of tha bills payabl© at maturity rathar this
tha ajwmat invftst^d snd thtsir l e % Ui In actual fiu^b^r of daya reUt«d to a 3&Mty
yuar* m ssalvsst, irisl*** ®» ssrtiflsstss, aataa, aai banda ara computed la tarn
af interst O/J tha amourjt invaatad, & M ralals tha nmb«r of daye r^ssaiMiig is as
iatsrast papiant psrlsd ts ths aataal mrnkmr of ^ y s in lbs parist, wlte aa»laffla«i
@^»#wiii« if mm tea-a ass ssspss ptriai. la inwliWNt,
H'\-
TREASURY DEPARTMENT
WASHINGTON, D.C.
RELEASE A, M, NEWSPAPERS, Tuesday, January 31, 1961.
D-6
The Treasury Department announced last evening that the tenders for two series of
Treasury bills, one series to be an additional issue of the bills dated November 3, 196
and the other series to be dated February 2, 1961, which were offered on January 25,
were opened at the Federal Reserve Banks on January 30. Tenders were invited for
$1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts,
of 182-day bills. The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing May k9 1961
"""""
Approx. Equiv.
Price
Annual Rate
182-day Treasury bills
maturing August 3^1961
Approx. Equxv,
Price
Annual Rate
99.1*28
99.1*11*
99.1*19
98.71*8 a/
98.730 ~
98.738
2.263$
2.318$
2.299$ 1/
2.1*76$
2.512$
2.1*97$ 1/
Excepting two tenders totaling $1,800,000
percent of the amount of 91-day bills bid for at the low price was accepted
62 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
Applied For
$
28,60U,000
: Applied For
Accepted
Accepted
I
13,6oU,000 t I 2 3 , 3 0 0 , 0 0 0 $ 23~,300,000
61*6,333,000 J
896,31*1,000 382,777,000
11,766,000 t
6,586,000
1,586,000
2l*,70ii,000 :
17,l*li*,000
9,6khs 000
18,137,000 :
14,51*7,000
1*,51*7,000
20,338,000 t
5,221,000
1*>371,000
168,322,000 :
73,310,000
hO,81iS,
000
18,1*014,000 s
6,627,000
5,71*7,
000
10,103,000 t
7,ol*5,ooo
3,1*1*5,
000
314,305,000 $
15,250,000
7,1*00,
17,7ll*,0O0 !
000
5,960,000
116,901,000 i
3,3^6,000
20,626,000
.,100,631,000 b/ $1,082,227,000 $500,270,000
13,262,000 _-/
1,1*53,953,000
26,766,000
29,70^,000
18.137,000
21,61*8,000
2l+9,l5M00
20,081*,000
U*,353,000
1*3,385,000
19,71i*,000
131,061,000
$2,056,563,000
)/ Includes $207,898,000 noncompetitive tenders accepted at the average price of 99.1*19
1/ Includes $1*1,720,000 noncompetitive tenders accepted at the average price of 98.738
0 On a coupon issue of the same length and for the same amount invested, tha return on
these bills would provide yields of 2»3l*$, for the 91-day bills, and 2.56$, for th
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 3o0~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 semiannua
compounding if more than one coupon period is involved.
FOR IMMEDIATE RELEASE
TUESBiAY, JANUARY 31, 1961
D-7
Secretary Douglas Dillon has asked Mr. William H. Neal to
continue as National Director of the U. S. Savings Bonds Division.
Mr. Neal has agreed to do so.
In making this announcement Secretary Dillon emphasized that
the Savings Bonds program plays a basic role in the administration of the public debt and affords an opportunity for every
American citizen to participate directly in the sound management
of the nation's finances. He welcomed the fact that the American
people now own more than $43 billion in Savings Bonds — an all
time high.
Mr. Neal has served in his present position since Feb. 23,
1960. He has had a long background of volunteer service with
the Savings Bonds program and in promotional work in his previous
capacity as Senior Vice President of the Wachovia Bank and Trust
Company, in Winston-Salem, North Carolina, from which institution
he is on leave. In 1958 Mr. Neal toured military and other
government installations in Europe as a volunteer to aid in
maintaining participation by Americans abroad in the Savings
Bonds program.
oOo
T R E A S U R Y DEPARTMENT
17
~—~H~II lllllllllll/VU^miWmi_JIL«—WI'MUMPI'IP^^
WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
TUESDAY, JANUARY 31, 1961
D-7
Secretary Douglas Dillon has asked Mr. William H. Neal to
continue as National Director of the U. S. Savings Bonds Division.
Mr. Neal has agreed to do so.
In making this announcement Secretary Dillon emphasized that
the Savings Bonds program plays a basic role in the administration of the public debt and affords an opportunity for every
American citizen to participate directly in the sound management
of the nation's finances.
He welcomed the fact that the American
people now own more than $43 billion in Savings Bonds —
an all
time high.
Mr. Neal has served in his present position since Feb. 23,
1960.
He has had a long background of volunteer service with
the Savings Bonds program and in promotional work in his previous
capacity as Senior Vice President of the Wachovia Bank and Trust
Company, in Winston-Salem, North Carolina, from which institution
he is on leave.
In 1958 Mr. Neal toured military and other
government installations in Europe as a volunteer to aid in
maintaining participation by Americans abroad in the Savings
Bonds program.
0O0
10
DRAFT - 1/30/61
IMMEDIATE RELEASE,
Tuesday, January 31, 196l.
D-8
Treasury Secretary Dillon today named Mr. Joseph Walker
Barr as Assistant to the Secretary.
Mr. Barr's responsibilities
will include Congressional liaison and related duties.
A Member of the 86th Congress, Mr. Barr represented the
11th District of Indiana. He served as a member of the
House Banking and Currency Committee.
Mr. Barr resigned as Executive Vies President of
Merz Engineering Company in Indianapolis and Shelbyville,
Indiana, to accept the Treasury appointment.
Mr. Barr served during World War II in the United States
Navy, attaining the rank of Lieutenant Commander.
He received
the Bronze Star for sinking a submarine in actions off Anzio
beachhead.
In 1939 Mr. Barr received his A.B. degree from DePauw
University, and in 194l his M.A. degree in Economics from
Harvard University.
He is a member of Phi Beta Kappa.
Mr. Barr is 43 years of age and is married to the former
Beth Ann Williston. Mr. and Mrs. Barr and their five children
will reside at 10711 Tulip Lane, Potomac, Maryland.
0O0
TREASURY DEPARTMENT
"WM'flWWhnrofMT^i^fflmrcW^
• • H U M — — _
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Tuesday, January 31, 1961.
D-8
Treasury Secretary Dillon today named Mr. Joseph Walker
Barr as Assistant to the Secretary.
Mr. Barr's responsibilities
will include Congressional liaison and related duties.
A Member of the 86th Congress, Mr. Barr represented the
11th District of Indiana.
He served as a member of the
House Banking and Currency Committee.
Mr. Barr resigned as Executive Vies President of
Merz Engineering Company in Indianapolis and Shelbyville,
Indiana, to accept the Treasury appointment.
Mr. Barr served during World War II in the United States
Navy, attaining the rank of Lieutenant Commander.
He received
the Bronze Star for sinking a submarine in actions off Anzio
beachhead.
In 1939 Mr. Barr received his A.B. degree from DePauw
University, and in 194l his M.A. degree in Economics from
Harvard University.
He Is a member of Phi Beta Kappa.
Mr. Barr is 43 years of age and Is married to the former
Beth Ann Williston.
Mr. and Mrs. Barr and their five children
will reside at 10711 Tulip Lane, Potomac, Maryland.
0O0
-? -
?n
*~
_-. w
in graduate studies at the University of Chicago, and from 19^8
to 1949 was an instructor at the Illinois Institute of
Technology.
He received his Ph.D. degree from the University
of Chicago in 1956.
Mr. Wallace is 40 years of age, and is married to
the former UA^^H $«0foM» C$P*^UH4^
,
Mr. and Mrs. Wallace and their thre
three children reside at
2913 Argyle Drive, Alexandria, Virginia.
0O0
DRAFT 1-30-61
Of
IMMEDIATE RELEASE,
Tuesday, January 31, 196l.
f
D-
Treasury Secretary Douglas Dillon has named Robert A.
Wallace of Park Forsest, Illinois, as a Special Assistant
to the Secretary.
Mr. Wallace will serve as an economic advisor to the
Secretary on financial, banking sad monetary, policy matters.
During 1959 and i960, Mr. Wallace was a consultant to
Senator Kennedy, and during the presidential campaign he was
responsible for research on economic policies. From 1955 to
1959, be served as Staff Director of the Senate Committee on
Banking and Currency, directing the Committee's background
study of the stock market, and participated in Senator
Douglas' study of central banking problems in Western Europe.
In 1958, he prepared materials and report for the Monroney
Resolution to create the International Development
Association as an arm of the World Bank.
Mr. Wallace was research associate to Senator Paul H.
Douglas, of Illinois, from 1949 to 1954. In 1952 he directed
a study of the Railroad Retirement System and in the same year
served as Federal Expenditures Analyst for the American
Assembly of Columbia University in its study of inflation.
In 1945 Mr. Wallace received his A.B. degree from the
University of Washington, and during the following year held
a teaching fellowship there. From 1946 to 1948, he was engaged
IMMEDIATE RELEASE,
Tuesday, January 31, 1961.
D-9
Treasury Secretary Douglas Dillon has named Robert A.
Wallace of Park Forest, Illinois, as a Special Assistant to
the Secretary.
Mr. Wallace will serve as an economic advisor to the
Secretary on financial, banking, monetary and fiscal policy
matters.
During 1959 and i960, Mr. Wallace was a consultant to
Senator Kennedy, and during the presidential campaign he was
responsible for research on economic policies. From 1955 to
1959, he served as Staff Director of the Senate Committee on
Banking and Currency, directing the Committee's background
study of the stock market, and participated in Senator Douglas'
study of central banking problems in Western Europe. In 1958,
he prepared materials and report for the Monroney Resolution
to create the International Development Association as an arm
of the World Bank.
Mr. Wallace was research associate to Senator Paul H.
Douglas, of Illinois, from 1949 to 1954. In 1952 he directed
a study of the Railroad Retirement System and in the same year
served as Federal Expenditures Analyst for the American
Assembly of Columbia University in its study of Inflation.
In 1945 Mr. Wallace received his A.B. degree from the
University of Washington, and during the following year held
a teaching fellowship there. From 1946 to 1948, he was engaged
in graduate studies at the University of Chicago, and from
1948 to 1949 was an Instructor at the Illinois Institute of
Technology. He received his Ph.D. degree from the University
of Chicago in 1956.
Mr. Wallace is 40 years of age, and is married to the former
Luna Agnes Campbell. Mr. and Mrs. Wallace and their three
children reside at 2913 Argyle Drive, Alexandria, Virginia.
0O0
23
- 3 -
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inter
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whic
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am
of discount at which bills issued hereunder are sold is not considered to accru
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in hi
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retur
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
"2"
decimals, e. g., 99.925. Fractions may not be used.
24
It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incorp
rated banks and trust companies and from responsible and recognized dealers in i
ment securities. Tenders from others must be accompanied by payment of 2 percent
the face amount of Treasury bills applied for, unless the tenders are accompanie
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submit
ting tenders will be advised of the acceptance or rejection thereof- The Secreta
of the Treasury expressly reserves the right to accept or reject any or all tend
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $ 200,000 or less for the additio
bills dated November 10, 1960 , ( 91 days remaining until maturity date on
3d_^
May 11, 1961
"ISSF
_) 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
xfcg}#
at the average price (in three decimals) of accepted competitive bids for the respec-
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on February 9, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills mat
ing February 9. 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 as?/ exaassftioa^ as such, and
m3_£J_D__{&
__-=
—-^
TREASURY DEPARTMENT ^
Washington
/<
IMMEDIATE RELEASE, 4:00 P.M., EST, ^
Wednesday, February 1, 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, f
cash and in exchange for Treasury bills maturing February 9, 1961 , in the amou
of $1,600,405,000 , as follows:
91 -day bills (to maturity date) to be issued
February 9, 1961
,
1_$
W"
in the amount of $1,100,000,000
, or thereabouts, represent-
xpijc
ing an additional amount of bills dated November 10. 1960 ,
and to mature May 11, 1961 , originally issued in the
amount of $ 400,206,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
£__£
#_2£
February 9, 1961 , and to mature
August 10, 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
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat
value).
Tenders will be received at Federal Reserve Banks and Branches up to the dosini
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, February 6 1961
&S*
'
"
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
g = = = - - - -
••
•
.•
..
-
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, February 1, 1961.
D-10
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 February 9,1961, in the amount of
$1,600,403,000, as follows:
91-day bills (to maturity date) to be issued February 9, 196l,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated November 10, 1960,and to
mature May 11, 1961,
originally issued in the amount of
$400,206,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
February 9, 1961, and to mature August 10, 1961.
The bills of both series will be issued on a discount basis und<
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, February 6, 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 submi
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. Tender
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 ban
or trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
November 10,1960, (91 days remaining until maturity date on
May 11, 196l)
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 February 9> 196l,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing February 9,196l. Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life Insurance companies) issued hereunder
need Include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
0O0
return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe
the terms
of
bills
and
thefrom
conditions
Federal
of theirReserve
issue.
Bank
Copies
orthe
Branch.
of Treasury
the circular
may
begovern
obtained
any
IMMEDIATE RELEASE,
Thursday, February 2, 1961.
D-ll
The Treasury will borrow $6.9 billion, or thereabouts, on February 15,
1961, for the purpose of paying off in cash $6.9 billion of 4-7/8$ Treasury
Certificates of Indebtedness maturing February 15, 1961. The $6.9 billion
to be borrowed will be obtained from the issue of:
$6.9 billion, or thereabouts, of 18-month 3-1/4$ Treasury
Notes, at par, to be dated February 15, 1961, and to mature
August 15, 1962. Interest to be payable semiannually on
February 15 and August 15.
»
Subscriptions to the new Treasury Notes will be received subject to
allotment. Payment for the securities may be made in cash, or Treasury Certificates of Indebtedness of Series A-1961, maturing February 15, 1961, which
will be accepted at par, in payment or exchange, in whole or in part, for the
Treasury Notes subscribed for, to the extent such subscriptions are allotted
by the Treasury.
The subscription books will be open for the 3-1/4$ Treasury Notes only
on Monday, February 6.
Any subscriptions for the Treasury Notes with the required deposits
addressed to a Federal Reserve Bank or Branch, or to the Treasurer of the
United States, and placed in the mail before midnight, February 6, 1961, will
be considered timely.
The new issue may not be paid for by credit in Treasury Tax and Loan
Accounts.
Other details concerning the new 3-1/4$ Treasury Notes are as follows:
Subscriptions to the 3-1/4$ notes from commercial banks, for their own
account, will be restricted in each case to an amount not exceeding 50 percent of the combined capital, surplus and undivided profits of the subscribing
bank.
Subscriptions to the 3-1/4$ notes from commercial and other banks for
their own account, Federally-insured savings and loan associations, States,
political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international organizations in which the United
States holds membership, foreign central banks and foreign States, dealers who
make primary markets in Government securities and report daily to the Federal
Reserve Bank of New York their positions with respect to Government securities
and borrowings thereon, Government Investment Accounts, and the Federal Reserve
Banks will be received without deposit.
- 2 -
'"'J 0
Subscriptions to the 3-1/4$ notes from all others must be accompanied by
payment of 2$ (in cash, or Treasury Certificates of Indebtedness, maturing
February 15, 1961, at par) of the amount of notes applied for not subject to
withdrawal until after allotment.
The Secretary of the Treasury reserves the right to reject or reduce any
subscription, to allot less than the amount of notes applied for, and to make
different percentage allotments to various classes of subscribers; and any
action he may take in these respects shall be final. Subject to these reservations, all subscriptions from States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, }nternational organizations in which the United States holds membership, foreign
central banks and foreign States, Government Investment Accounts, and the
Federal Reserve Banks, will be allotted in full. The basis of the allotment
of all other subscriptions will be publicly announced, and allotment notices
will be sent out promptly upon allotment.
All subscribers 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 notes of this issue, until after midnight February 6, 1961.
Commercial banks in submitting subscriptions will be required to certify
that they have no beneficial interest in any of the subscriptions they enter
for the account of their customers, and that their customers have no beneficial
interest in the banks' subscriptions for their own account.
Draft of proposed press release for 1961 Assay Commission
Page 2
Dr. Edward Wichers, Associate Director of the National Bureau
of Standards, one of the members of the Commission, will take to Phila
delphia the official weights of the Philadelphia Mint, which have been
calibrated at th<=> Ri^po" <-*•? Q+ondaHo
-H,~«~
~,r-^i-x-, ^**j • ,$ ^gea
annual tests.
Mr. Chootor L. E r a w e , oftola,Wisconsin
Mr. Au$mt John Throw, of Pmrioi, Mew Joroojr
year ar¥r- Jack T. Conn, of Ada, Oldahoxiiji
Mr.ftaadolpfcw . Nookolo, of m®kmm*&$ Virginia
•vtr. AGfcort Gallatia Mv#rse, Sr.. of Gaotoola, North Carolta-*;
Mr. c. k. mi$i®> of Caaftaa, Ohio
Mr. John £. Power* of PhUadolpkia,
Pmmftvmtm
Mr* Wattor B. Wooison* Sr». of Smlitfeairy, Not* h Carolina
Mr. A n t o * Ittiafcf4_0£l^^
North Cor* :-lm*
Mr. IteaaathatafltOfAdaaio, of Bartloaritta, Oisialioma
Mr. Harry O. Klotota, of Nortel*, Virginia
Mr.
Honsloy*
of Fort
Thomas,
m»Mmk$
Mr. HowoU
John H.a.Morris,
Jr.,
of Home
wood, Alabama.
Gt_A_* _2.r-~ \:(.. :-.{ iiiG Commission, named .in conformity wit-.
statutory provisions, are Honorable Ray M. Gidney, Comptroller of the
Currency, Washington, D. C.; Honorable J. Cullen Ganey, Judge of the
District Court, Eastern District of Pennsylvania, Philadelphia, Pennsy
and Mr. Howard F. Johnson, Chief Assayer of the U. S. Assay Office,
New York, New York.
1D R A F T O F PROPOSED PRESS RELEASE
ANNUAL ASSAY COMMISSION 1961
/
<
JJosoi^afe-le Douglas Di 1 Ion ^ae*1..^lag^ofctte^&E^^E
today that the Annual Assay Commission for 1961 will convene at t
United States Mint in Philadelphia on Wednesday morning, February
for the traditional "trial of the coins. " The White Ho_se *0_a5r
the names of the /S members appointed by President Kennedy
to take part in the tests.
The Assay Commission is one of the oldest institutions of the
Government, having been provided for in the same statute that est
the Mint on April 2, 1792, and assembled regularly since that tim
function is to make tests of coins, taken at random from the two
mints during the preceding year, to determine whether they confor
weight and fineness to legal requirements.
During each year one silver coin from every delivery of 10,000 ma
at each of the two mints is taken out for test by the Commission.
coins are carefully preserved in a "pyx" at the Philadelphia Mint
joint care of the Superintendent and Assayer, and are delivered t
mission for the annual tests. The word "pyx, " referred to in the
authorizing the "trial of the coins, " derives from the "pyx-ches
tacle for coins selected for testing in the early days of the Bri
IMMEDIATE RELEASE,
Monday, February 6, 1961.
D-12
Treasury Secretary Douglas Dillon said today that the Annual
Assay Commission for 1961 will convene at the United States Mint in
Philadelphia on Wednesday morning, February 8, 1961, for the
traditional "trial of the coins." The White House Saturday announced
the names of the 15 members appointed by President Kennedy to take
part in the tests.
The Assay Commission is one of the oldest institutions of the
Government, having been provided for in the same statute that
established the Mint on April 2, 1792, and assembled regularly since
that time. Its function is to make tests of coins, taken at random
from the two operating mints during the preceding year, to determine
whether they conform in weight and fineness to legal requirements.
During each year one silver coin from every delivery of 10,000
made at each of the two mints is taken out for test by the Commission.
These coins are carefully preserved in a "pyx" at the Philadelphia
Mint, under the joint care of the Superintendent and Assayer, and
are delivered to the Commission for the annual tests. The word
"pyx," referred to in the law authorizing the "trial of the coins,"
derives from the "pyx-chest," a receptacle for coins selected for
testing in the early days of the British Mint.
Mr. Edward Wichers, Associate Director of the National Bureau
of Standards, one of the members of the Commission, will take to
Philadelphia the official weights of the Philadelphia Mint, which
have been calibrated at the Bureau of Standards. These weights
will be used in the annual tests.
Besides Dr. Wichers, those serving on the Assay Commission this
year are;
Mr. Chester L. Krause, of lola, Wisconsin
Floyd W. Shafer, M. D., of Stroudsburg, Pennsylvania
Mr. August John Throm, of Paterson, New Jersey
Mr. Jack T. Conn, of Ada, Oklahoma
Mr. Randolph W. Nuckols, of Richmond, Virginia
Mr. Albert Gallatin Myers, Sr., of Gastonia, North Carolina
Mr. C. A. Seiple, of Canton, Ohio
Mr. John E. Power, of Philadelphia, Pennsylvania
Mr. Walter H. Woodson, Sr., of Salisbury, North Carolina
Mr. Archie Kimbrough Davis, of Winston-Salem, North Carolin
Mr. Kenneth Stanley Adams, of Bartlesvllle, Oklahoma
Mr. Harry 0. Nichols, of Norfolk, Virginia
Mr. Howell
John H.R.
Morris,
Hensley>
Jr.,
ofof
Fort
Homewood,
Thomas,Alabama
Kentucky
- 2 Other members of the Commission, named in conformity with
statutory provisions, are Honorable Ray M. Gidney, Comptroller of the
Currency, Washington, D. C ; Honorable J. Cullen Ganey, Judge of the
District Court, Eastern District of Pennsylvania, Philadelphia,
Pennsylvania; and Mr. Howard F. Johnson, Chief Assayer of the
U. S. Assay Office, New York, New York.
0O0
i.l\k : k. r. ^VimM*
teooday*
Pobpuary 7*.*96l.
J
Tho Traaoarjr copartaaat tew««i U o t ovonlag that tho toadoro forte©aarias af
Troaaury bil%M$ ®m mt%m to ba an additional iaaao of tho M i l * dated N m a b o r 10*
I960, and tho otbor mwim te it dated tehtuary ^# ^ 1 , ***•* *•*• *M**** aa $&m$Q
worn opaate at th* Fod««l % t # r w Banka on M r a n r y 6* fondaro oara invited for „
fXf100f-.H)OfOOO# or thoraabooto* offt<-dayhilla and for ISO;) ,00© ,000* or thot-aateati* ,
l $ M a y hilla. Tha Stella of tha teo aoriaa art aa tellavot
mmh OF nf CEPTET
91«day trmmrf bills
__«_S_lMJ«_UaWI}SL
ppron* SiffEiu
A]
4«aoal Hate
JESbB.
Appro*:*
pproa:* ffaifT
JQ_2tt,
Annual late
i.$30|
*.3t8ft
99JOJ a/
9d.d9*
low
t.397*
99.39k
Limy
90,701
A*nrato
99.k0_
a/ Parting teo tewior® totaling #t5D»00Q
£_aa?ttee oiaatessdorof *100»000 ^
« '3' paraoat ©f \Jm anount of 91-day bill® bid for at tha Ion prion vm aeoopted
1$ paroant of tho aaoaat of 18$-day bills bid for at tho low prioo mm aooopiai
High
*.n&y
TOTAt TKXDB 5 4HX1KD F3H AMD dttBrTKO IT f t W M tKMff* rXSTftttfSt
pjEltt
••
Bootes
fan fort
9l&UMMlphla
Oiovalofad
itkk*»i*k,a3o
t7»U6 # 0OO
3k»fcso,ooo
Mb mMBSmW*ftmX£
tff3-S#G0G
Atlmnte
tt,M?f000
€!iloago
291,913*000
St. loyia
39»68d#OQO
llissaapolia
19,666,000
Hasan® City
k6,hofc»oc®
San franoiooo
ll#I«*lSlfO00 j|/ll,9J»&,XM,000
11*061*196,000
I
ills w w w l ^ % W 0
rfep
*S3,30a,ooo
6*119*000
ld»t33t»ooo
5»Q»,ooo
1**573*000
63*701*000
k,t*Sl*0©0
S*65t*ooo
3Ut*9$k*000
kt677*OQO
t J,m,m
39S*o£k*ooo
1,119,000
30*331*00©
t*0§9,00©
3,373*00®
31*701*000
3*k8l*000
t»l$9,0@§
7,1**000
3*677,000
Tnalndoa *200*k£6*000 nonaonpntftlvo tendora ooe«tpte«t at tha aforaga tfjgliWI.
prtea of 99JM
Xnelodaa f39*036*000 'nowowpotitivt tmtz&®r® aoaapted. at tha avorafo tSOO
r^rteo
of 9t«70|
fO7h»00Q,^
l
7O7,9kk,OO0
lft,U£,000
3o#a8Ofo0O
15*311*000
A # 2d7»O0O
Ik7,fa03,000
17*090*000
us*€86*c©0
lk,099,000
33,051**000
on a coupon 'laa^h of tha mm% loiwfth m® for ilia INSWO A K W ! Invootod* ^ J O ratoni ai
thoao bill* «ro«;ld prorMo yitia® of f .UMC* for tho 91-daar hlllot a»d $M$$
for II
l6?-da/ bllla. Xnt«wr*tt ratoa oa hilla "aro ^notai km tor»« of hadk dla®ou«t wm
tho ratism ratetad to tto faeo amount of tha bill* piya!?!o at natarltar ratisar tan
tha amount immt®i and th#ir loagtt in aetual wnbor of dayo ralatad to a 360-d^
jmv.
In mn%m®t$
ylalda on oortlfloatao* notaa* and 'bo^s are ©«^itod la taml
of iat#r«isi @n tho iw^aet lmraotod, and ralate tha w » b # r of daya 'romatoiog in as
%s&®m®% pmym%vt& parted to tha aetual m»b#r of dayo in tho ^irlod* ni^j
ceopovtndlnK if mor® than ®m oonpon porlod ia iwralvad*
TREASURY DEPARTMENT
WASHINGTON. D.C.
RELEASE A . M . NEWSPAPERS, Tuesday, February 7, 1961.
A-13
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 November 1 0 ,
I960, and the other series to be dated February 9, 196l, which were offered on February I
were opened at the Federal Reserve Banks on February 6. Tenders were invited for
$1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of
182-day bills. The details of the two series are as follows:
RAN3E OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
a/
B"/
73
15
91-day Treasury bills
maturing May 11, 196l
Approx. Equiv.
Price
Annual Rate
99.1*13 a/
99.39k ~
99.1*00
2*322$
2.397$
2.37W 1/
182-day Treasury bills
maturing August 10, 196l
Approx. Equiv.
Price
Annual Rate
98.721 b/
98.698 "
98.703
2.530*
2.575$
2.566$ 1/
Excepting two tenders totaling $250,000
Excepting one tender of .^00,000
percent of the amount of 91-day bills bid for at the low price was accepted
percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AMD ACCEPTED BY FEDERAL RESERVE DISTRICTS?
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
t Applied For
3,192,000
: f
883,301*, 000
:
6,819,000
s
:
1*5,332,000
:
5,059,000
:
l*,573,ooo
:
63,701^000
:
l*,i*8l,000
5,659,000
:
12,951*, 000
:
:
k,677,ooo
:
21,ljli5,000
Applied For
$
2li, 001,000
l,l4_i2,12U,000
27,116,000
3l*,l*20,ooo
15,318,000
28,1*67,000
198,913,000
19,686,000
19,666,000
l46,l|.0ii,000
18,090,000
70,863,000
Accepted
$
10,91*6^,000
707,9U*,000
12,116,000
3l*,lj20,000
15,318,000
214,267,000
1147,1*83,000
18,686,000
lli,099,000
33, 051*, 000
17,090,000
614,728,000
*i,9k$,ik8,ooo
£L,100,151,000 c/ $1,061,196,000
Accepted
$ 3,192,000
395,o51*,ooo
1,819,000
30,332,000
2,059,000
3,373,000
31,701,000
3,1*81,000
2,159,000
7,851*, 000
3,677,000
15,373,000
|5oo,07l*,ooo d/
c/ Includes $200,1*88,000 noncompetitive tenders accepted at the average price of 99.1*00
5/ Includes $39,036,000 noncompetitive tenders accepted at the average price of 98.703
1/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.1*2$, for the 91-day bills, and 2.6)4$, 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.
- 3 from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inter
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whic
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am
of discount at which bills issued hereunder are sold is not considered to accru
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in hi
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retur
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bill3 and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2-
Mm_j-Qg____&
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Breaches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incorp
rated banks and trust companies and from responsible and recognized dealers in i
ment securities. Tenders from others must be accompanied by payment of 2 percent
the face amount of Treasury bills applied for, unless the tenders are accompanie
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submit
ting tenders will be advised of the acceptance or rejection thereof. The Secreta
of the Treasury expressly reserves the right to accept or reject any or all tend
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $200,000 or less for the addition
pa*
bills dated November 17, I960
, (
91 days remaining until maturity date on
May 18, 19ol ) and noncompetitive tenders for $100*000 or less for the
^ E
182
~~p_gr~
-day bills without stated price from any one bidder will be accepted in full
k£kx
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 February 16, 196l i_ cash or
other immediately available funds or in a like face amount of Treasury bills mat
ing February 16, 1961 . cash and exchange tenders will receive equal treatment.
e_g
Cash adjustments will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new hills.
The income derived from Treasury "bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and los
B__d__soas_:
01
TREASURY DEPARTMENT
Washington
y~
,
C,
\s
IMMEDIATE RELEASE
IJXEl__X___B_I_MS_-£-__i, 1*:00 P. M., EST
Monday, February 6. 196l
.•
The Treasury Department, by this public notice, invites tenders for two s
of Treasury bills to the aggregate amount of $ 1*600*000*000 , or thereab
cash and in exchange for Treasury bills maturing February 16, 1961 , in t
__o
of $ 1,601,639,000 , as follows:
91 -day bills (to maturity date) to be issued February 16, 1961
in the amount of $ 1,100*000,000 , or thereabouts, representing an additional amount of bills dated November 17, I960 ,
and to mature May 18, 1961
, originally issued in the
5S
amount of $ U99,975,000
, **ie additional and original bills
£j__5
to be freely interchangeable.
182 -day bills, for $ 500*000*000 , or thereabouts, to be dated
"555"
,
, *&%
February 16, 1961
, and to mature August 17, 1961
.
The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity thei
will be payable without interest. They will be issued in bearer form onl
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,0
value).
Tenders will be received at Federal Reserve Banks and Branches up to the
hour, one-thirty o'clock p.m., Eastern Standard time, Friday, February 1
Tenders will not be received at the Treasury Department, Washington. Eac
must be for an even multiple of $1,000, and in the case of competitive t
price offered must be expressed on the basis of 100, with not more than t
TREASURY DEPARTMENT
! • • . ' .
!
."i
.
.
' .•
•
'.•.•
. • • ' . .
••
' ,
*-'T..—
<>n
.'•. "••
. •'••
- J L "
'. '•••••••>• i
in m,"......n . ,. ••! ,< ,i.... ;• -A'-no -•••"•»'
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Monday, February 6* 1961.
D.l4
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 February 16,1961, in the amount of
$1,601,639,000, as follows;
91-day bills (to maturity date) to be issued February 16, 1961*
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated November 17, i960,and to
mature May 18, 1961,
originally issued in the amount of
$499,975,000,
the additional and original bills to be freely
Interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
February 16, 1961,and to mature August 17, 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, Friday, February 10, 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 arc
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
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- 2-
Commodity
Period and Quantity
Unit
Imports
of
:
as of
Quantity •Jan. 28, ic
bsolute LQuotas
eanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted pea12raos.from
auts but not peanut butter)...... Aug. 1, I960
ye, rye flour, and rye meal July 1, 1960June 30, 1961
Canada
Other Countries
titter substitutes, including
butter oil, containing 45% or
more but t erf at.
Calendar Year 1961
1,709,000 Pound
15,701*
140,733,957 Pound
2,872,122 Pound
122,967,888*
1,200,000 Pound
Quota Filled
Jan. 31, 1961
Argentina
Paraguay
Other Countries
5,525,000 Pound
741,000 Pound
234,000 Pound
3,329,423
733,687
224,812
Oct. 31, 1961
Argentina
Paraguay
Other Countries
18,770,577 Pound
2,230,313 Pound
711,188 Pound
ung Oil Nov. 1, 1960-
Feb. 1, 1961-
Imports through February 7, 1961.
745,177*
Quota Filled
TREASURY DEPARTMENT
Washington, D. C.
MMSDIATE RELEASE
D-18
FRIDAY, FEBRUARY 10, 196l
The Bureau of Customs announced today preliminary figures showing the imports for
onsumption of the commodities listed below within quota limitations from the beginning
f the quota periods to January 28, 1961, inclusive, as follows:
Commodity
:
Period and Quantity
: Unit
Imports
: of
as of
;Quantity Jan. 28, 19f>l_
ariff-Rate Quotas:
ream, fresh or sour Calendar Year
1,500,000 Gallon
hole milk, fresh or sour Calendar Year
3,000,000 Gallon
attle, 700 lbs. or more each Jan. 1, 1961(other than dairy cows)
Harch 31, 1961
120,000 Head
attle less than 200 lbs. each.... 12 mos. from
April 1, 1960
200,000 Head
ish, fresh or frozen, filleted,
tc,, cod, haddock, hake, polock, cusk, and rosefish
I... Calendar Year
32,600,645 Pound
una fish. Calendar Year
hite or Irish potatoes:
Certified seed
Other
To be Pound
announced
,
12 mos. from
Sept. 15, 1960
114,000,000 Pound
36,000,000 Pound
July 1, 1960
80,000,000 Pound
eanut oil.......... 12 mos. from
alnuts Calendar Year
tainless steel table flatware
(table knives, table forks,
table spoons)..
5,000,000 Pound
Nov. 1, 1960Oct, 31, 1961
69,000,000
Pieces
68,123,'
/ Imports for consumption at the quota rate are limited to 8,150,161 pounds during
le first three months of the calendar year.
(over)
4y
TREASURY DEPARTMENT
Washington, D. C.
12DIATE RELEASE
D-l8
RTDAY, FEBRUARY 10, 196l
The Bureau of Customs announced today preliminary figures showing the imports for
isuraotion of the commodities listed below within quota limitations from the beginning
the quota periods to January 28, 1961, inclusive, as follows:
Commodity
Period and Quantity
: Unit
: of
;
Imports
as of
;Quantity ;Jan. ?fi, 1961
riff-Rate Quotas:
earn, fresh or sour
Calendar Year
ole milk, fresh or sour,
Calendar Year
3,000,000 Gallon
12
ttle, 700 lbs. or more each
other than dairy cows)
Jan. I, 1961March 31, 1961
120,000 Head
8,424
ttle less than 200 lbs. each.
12 mos. from
April 1, 1960
200,000 Head
33,734
sh, fresh or frozen, filleted,
c,, cod, haddock, hake, polck, cusk, and rosefish......;.
Calendar Year
32,600,645 Pound
7,533,073
aa fish.
Calendar Year
To be
announced
2,552,633
ite or Irish potatoes:
artified seed...
ther.
12 mos. from
Sept. 15, 1960
anut oil
12 mos. from
July 1, 1960
80,000,000
Pound
1,440
Lnuts
Calendar Year
5,000,000 Pound
1,403,801
linless steel table flatware
:able knives, table forks,
:able spoons )
,
Nov. 1, 1960Oct. 31, 1961
69,000,000 Pieces
68,123,909
1,500,000 Gallon
'ouna
114,000,000 Pound
36,000,000 Pound
232
38,993,150
3,691,047
Imports for consumption at the quota rate are limited to 8,150,161 pounds during
first three months of the calendar year.
(over)
- 9 -
Period and Quantity
Commodity
; Unit
:
Imports
; of
:
as of
:Quantitv :Jan. 2ftj
absolute Quotas
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter)
12 mos. from
Aug. 1, 1960
1,709,000
Pound
140,733,957
2,872,122
Pound
Pound
122,957,1
Calendar Year 1961
1,200,000
Pound
Quota Filled
Jan. 3 1 , 1961
Argentina
Paraguay
Other Countries
5,525,000
741,000
234,000
Pound
Pound
Pound
3,329,423
733,687
224,812
Oct. 3 1 , 1961
Argentina
Paraguay
Other Countries
18,770,577 Pound
2,230,313 Pound
711,188 Pound
745,177*
Quota Filled
lye, rye flour, and rye meal July 1, 1960June 3 0 , 1961
Canada
Other Countries
Gutter substitutes, including
butter o i l , containing 4 5 % or
more butterfat
15,701*
rung Oil Nov. I, 1960-
Feb. 1, 1961-
* Imports through February 7, 1961.
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
FRIDAY, FEBRUARY!), 196l,
D-19
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961, to
January 28, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of
1955:
Commodity
Buttons ,
Imports
as of
Jan. 28, 1961
Established Annual
Quota Quantity
765,000
Gross
26,888
250,110
Cigars........
180,000,000
Number
Coconut oil...
403,200,000
Pound
15,170,059
Cordage ,
6,000,000
Pound
171,201
Tobacco.......
5,850,000
Pound
1,193,011
49
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
FRIDAY, FEBRUARY 30,1961.
D-19
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961,to
January 28, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of
1955:
Commodity
Imports
as of
Jan. 28, 1961
Established Annual
Quota Quantity
Buttons.
765,000
Gross
26,888
Cigars.
180,000,000
Number
250,110
Coconut oil
403,200,000
Pound
15,170,059
Cordage.,..,
6,000,000
Pound
171,201
Tobacco....
5,850,000
Pound
1,193,011
H%lMSil..n.
mtSMnm,
Saturday, February 11, 1961.
The Treasury Department announced last evening that the tenders for two ssrlt* (
Treasury bills, on® series to be aa additional issue of the bills dated Hoveaber 17,
I960, and tee other series t© be dated February 16, 1961, wfcish were offered on
February 6, were opened at the Federal Reserve Banks on February 10. Tenders were is
vited for 11,100,000,000, or thereabouts, of 91-d»y b i H s and for ^00,000,000, or
thereabouts, of 182-day bills, the details of the two series are as foUowst
183-day Treasury bills
91-day Treasury bills
mmt OF ACCIPTH*
astolqg august 17, 19&
«atnriii| m y li f 19ft
G0M-3STXTIVE BITSt
MppTQ
Approx. lq«iy;
purox. ^©,uiv,
fries
Pries
Annas! mtt
Annual Hate
nwiiimnniiiwimitiniin N H
High
Low
Average
n.my
n
i m
2.437*
98*666
2.639J
98.656
98.659
2.658*
z.kim
99.37k
2.6*2* y
99.378
u.km y
f/ Excepting two tenders totaling #988,000
3 percent of the amount of 91-day bills bid for at the low prise ires accepted
23 percent of the exeunt of 182-day bills bid for at the lov price
TOmt ntttBlS A^PU^D F0t Ai© AOCSJPTfB BT FKDB1AI. w s t m DISTRICTS?
9LW
Men Tork
Philadelphia
Cleveland
Riehiaond
Atlanta
Chicago
St. koala
Minneapolis
Kansas City
Dallas
TOtAXJ
San Francisco
Applied
1,508,285,000
t7,ltOli,ooo
60,846,000
10,420,000
24,046,000
202,359,000
18,987,000
19,689,000
36,926,000
18,480,000
$2,035,627,000
«|S«,O0p
Aooepted
%' WMM
i3,oK^o
^ r o
1,091,384,000
?69,138,0O0
10,602,000
12,279,000
25,950,000
4§,846,0OO
1,502,000
1O,420,00O
5,857,000
18,9T6,0O0
72,541,000
107 ,474,000
7,375#000
15,982,000
5,730,000
13,314,000
16,433,000
31,143,000
26,706,000
4,896,000
$1,100,699,000
14,405,000 b / 11,286,647,000
50,47^000
»mn t m
387,239,000
5,452,000
25,900,000
1,252,000
5,8*7,000
32,295*000
3,828,000
2,105,000
6,460,009
3,221,000
14,838,000
8500,393,000 n
b/ Includes 1209,505,000 aoacoiipetitlve tenders accepted at the average price of 9?»
e/ Includes 841,958,000 noncompetitive tenders aeeepted at the average prise of 9 M
1/ On a coupon issue of the mm length and for the saw© amount invested, the retan
these sills would provide y%*l$& of 2.51$, for the 91-day bills, amd 2.731* f«
182-day bills. Interest rates on bills are quoted ia terns of bank discount *i«
the return related to toe faoe aaeuat of the bills payable at maturity rathsr t»
the amount infested and their length ia actual number of days related to a 360-4
year. In contrast, yields on certificates, notes, and bonds are computed ia W
of interest on the amount invested, and relate the number of days remaining ia*
interest payment period to the actual number of days ia the period, with seaiftiB*
compounding
if more than one coupon period is involved.
)
u
TREASURY DEPARTMENT
rafcs__*»mmaTm—WWf_^
W A S H I N G T O N , D.C
RELEASE A, M. NEWSPAPERS, Saturday, February 11, 196I,
D-20
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 November 17,
I960, and the other series to be dated February 16, 1961, which were offered on
February 6, were opened at the Federal Reserve Banks on February 10. Tenders were invited for #1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or
thereabouts, of 182-day bills. The details of the two series are as followss
RAN3E OF ACCEPTED
COMPETITIVE BIDS 5
High
Low
Average
91-day Treasury bills
maturing May 18, 1961
Approx. Equiv".
Price
Annual Rate
182-day 1reasury bills
maturing August 17, 1961
Approx. Equiv.
Price
Annual Rate
•
•
«
%
a
99.384 a/
99.374
99.378
2.437$
2.476$
2.462$ 1/
98.666
98.656
98.659
.
:
e
*
•
2.639$
2.658$
2.652$ 1/
a/ Excepting two tenders totaling $988,000
T3 percent of the amount of 91-day bills bid for at the low price was accepted
23 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
$
30,620,000
1,508,285,000
27,404,000
60,846,000
10,420,000
24,046,000
202,359,000
18,987,000
19,689,000
38,926,000
18,480,000
75,565,000
$2,035,627,000
Accepted
$
15,68^,000
769,138,000
12,279,000
45,846,000
10,420,000
18,976,000
107,474,000
15,982,000
13,314,000
26^706,000
14,405,000
50,474,000
$1,100,699,000 ]
t Applied For
Accepted
13,014,000 $ 12,176,000
1,091,384,000
387,239,000
10,802,000
5,452,000
25,950,000
25,900,000
1,502,000
1,252,000
5,857,000
5,627,000
72,561,000
32,295,000
7,375,000
3,828,000
5,730,000
2,105,000
16,433,000
6,460,000
4,896,000
3,221,000
31,143,000
14,838,000
$1,286,647,000 $500,393,000 c/
s I
%
«
•
A
«
«
•
«
«
«»
«
»
»
b/ Includes $209,505,000 noncompetitive tenders accepted at the average price of 99.378
0/ Includes $41,958,000 noncompetitive tenders accepted at the average price of 98.659
l/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.5l$> for the 91-day bills, and 2.73$, 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.
no
IMMEDIATE RELEASE
Friday, February 10, 1961
D-21
Secretary of the Treasury Douglas Dillon and Walter Muller,
Ambassador of Chile today signed an exchange agreement in the amount
of $15 million.
Under the agreement, which will run for one year, Chile may
request the United States Exchange Stabilization Fund to purchase
Chilean pesos should the occasion for such purchases arise. Any
pesos so acquired by the U.S. Treasury would subsequently be repurchased by Chile for dollars.
This exchange agreement is designed to assist the continuing
efforts of Chile to consolidate economic stabilization and freedom
in its trade and exchange system, while Chile pursues a program of
reconstruction from the damage of the severe earthquakes of May 196©
and a program of general economic development. The Chilean Government has stated that exchange operations on the part of the authorities
will be conducted to minimize exchange rate fluctuations arising from
purely temporary or erratic influences which do not reflect a fundamental trend in the market.
The agreement with the U.S. Treasury supplements the $75 million
standby arrangement with the International Monetary Fund which was
also announced today.
TREASURY DEPARTMENT
53
WASHINGTON, D.C.
IMMEDIATE RELEASE n p.
Friday, February 10, 1961
Secretary of the Treasury Douglas Dillon and Walter Muller,
Ambassador of Chile today signed an exchange agreement in the amount
of $15 million.
Under the agreement, which will run for one year, Chile may
request the United States Exchange Stabilization Fund to purchase
Chilean pesos should the occasion for such purchases arise. Any
pesos so acquired by the U.S. Treasury would subsequently be repurchased by Chile for dollars.
This exchange agreement is designed to assist the continuing
efforts of Chile to consolidate economic stabilization and freedom
in its trade and exchange system, while Chile pursues a program of
reconstruction from the damage of the severe earthquakes of May I960
and a program of general economic development. The Chilean Government has stated that exchange operations on the part of the authorities
will be conducted to minimize exchange rate fluctuations arising from
purely temporary or erratic influences which do not reflect a fundamental trend in the market.
The agreement with the U.S. Treasury supplements the $75 million
standby arrangement with the International Monetary Fund which was
also announced today.
- Bcountries carry their full and fair share of the burden, ineluding those which up to now have not fullir met their response
teilltles in this field.
In this respect also we in the
treasury Sfepartment look on the OECD aa an essential instrument
of financial policy.
fo summarize the role of the OBCD, in terms of tasks
which the Fresident has stressed in his message on balance of
payments and gold
—
It will be a major forum for efforts to harmonize
the financial and economic policies for growth and
stability of most of those industrialized nations of
the world whose economic behavior significantly influences the course of the world economy and trend of
international payments!
—
It will provide a solid framework for intensive and
frequent international consultations on the financial
and monetary policies which must be pursued in order
to achieve and maintain better balance in the international payments position;
— finally, it will bring into being an organization of
vital importance for assisting, on a cooperative basis,
the developing countries of the free world.
1
z;?;
\
^
_ •
coordination between our financial and monetary authorities and
those of the major Industrialized countries of fee tern Europe.
this is now recognized on all sides. The Que© is the forum
in which this coordination can be worked out and through which
we can avoid similar episodes in the future. As such it is a vifci
important element in our drive to right our payments deficit
without infringing on the actions that must be taken to reinvigorate our economy at home.
The 0B0P will also provide an especially important
mechanism for the industrialized countries of North America
and Western Europe to work in concert to contribute to sound
economic growth in the less^developed countries. The extreme
poverty of these countries cannot be allowed to continue. The
gap between standards of living In the industrialized OSCD
countries and those in the less-developed countries is large
and widening.
To narrow this gap will require great effort and considerable
resources. Economic development requires the formation of
capital on a large scale. While the greatest portion of this
capital must be derived from savings on the part of the lessdeveloped countries, these countries also need large help
from the industrialized countries. By fostering consultation
and coordination among member countries, the OBCD can contribute
greatly to increasing and improving the economic, technical,
and educational assistance extended to the less-developed
countries. It can help to ensure that all the industrialized
- 6 -
>-.
r.,Q.
began to slow in the United States, our Federal Reserve
began to ease credit and reduced its rate first to 3i$*
an
^
later to 3$. Heanwhile the Oerman Bundesbank, with its eye
on the domestic boom in Oermany, and with the objective of
controlling inflation at home, increased its discount rate to
50 in June. The Bank of England promptly followed suit and
upped its rate to 6#.
These actions brought about a sharp imbalance in shorttQrm interest rates. The results were bad for all concerned.
A flood of short-term funds left Wew York seeking the higher
return in Frankfurt and J*ondon. This sharply increased our
balance-of-paymenta deficit from an annual rate of $2.9 billion
in the first six months to a rate of $4*7 billion in the second
six months. This sudden and sharp increase shook confidence
in the dollar and the result was a substantial increase in
the outflow of gold. This in turn brought on the speculative
outbreak in the private gold market in London last October when U
a day or two gold sold at $40 an ounce. Meanwhile the large
inflow of American funds frustrated the efforts of the 0©rman
authorities to tighten up on investment in Germany. When this
became clear the German and British authorities cut back their
discount rates, the flow of short-term capital slowed and
confidence was gradually restored.
The less#a>to be learned by all this is that in these days
of convertible currencies there must be close cooperation and
c;7
m 5 —
major Western European countries pursue compatible policies.
It is in this connection that we in the Treasury Department
think the OECD will be especially useful. In the OECP, we
shall be able to have informal and frank consultations with
policy-making officials from our partner countries. Such consultations should enable the 0100 countries to move in harmony
toward the common objective of economic growth. Also such consultations should result in measures to contribute to the
solution of the United States balance-of-payments problem.
The President, in his message to Congress on balance of
payments and gold, set forth our program to ease the problem
of short-term funds as well as to correct the basic payments
deficit and achieve longer*term equilibrium, Jfost of the
measures described by the President will be more effective
if complementary policies are followed by the major OECD
countries. Some of the measures can be effective only in
cooperation with these countries.
To Illustrate the need for better international coordination of economic and financial policies I would like to refer
to last year's movements of international short-term capital.
during the first half of i960 our balanca~of-payments
deficit on an annual basis was $#.7 billion — down markedly
from the level of $3.8 billion in 1959*
Last Spring our
Federal Rf serve discount rate was at ##, the Qanaan Bundesbank
rate was 40, and the Bank of England rate was <fijf • In other
words, all those rates were close together. Then, as business
. -0
. 4Weatern Europe are Joining together and the reasons why they
are doing so. It provides the means for converting common
policy objectives into effective action, fet it does not restrict or impinge upon the sovereign rights which each of the
Member Countries Is determined to preserve. In short, the Convention provides a simple, sturdy platform from which the QM®
countries can launch cooperative and constructive action to
meet the major economic problems facing us toiay.
The Treasury ©apartment is especially concerned with two
types of measures to which the functions of the 0S0S would be
relevant! Those that will invigorate our economy and those that
will improve our balance of payments position. Such measures
ere now closely interrelated. For the first time in over thirty
years, and to a larger extent than ever 'before! in our history,
our success in pursuing these objectives is dependent on the
understanding and cooperation of the Industrialized countries
of Western furope. In turn their economies are heavily inf luenett
by our actions here at home. We must take into account the
international repercussions of actions which we take here at
home since the reactions they may provoke abroad could easily
frustrate our objectives. The only answer is close, continuing
consultation and cooperation with Canada and the countries of
Western Europe. The OSCD is designed to provide the forum for
this consultation and cooperation.
As an example, the effectiveness of the program Just
announced by the President to improve our balance of payments
will depend to a considerable degree on the extent to which the
3 -
59
In the fall of 1959 Western lurope, newly strong end
confident, appeared ready to share fully with us the responsibilities we had shouldered virtually alone through most of the
post-war period. Accordingly, Fresident Slsenhower, in his
meetings in Faris In December of that year, with Fresident
de daulie, Chancellor Adenauer and Frime Minister Haemillan,
suggested that the time had come to reorganize and revitalize
trans-Atlantic relations so as to redirect the energies of
the industrialized countries toward the economic improvement
of the free world as a whole.
Otit of these four-power telke emerged consultations and
negotiations among ail IS of the member countries of the 0HEC,
the United States and Canada.
A group of four experts was created to draft the charier
of a successor organization to the OESC which the United States
and Canada could join as full members. After consulting representatives of the twenty Interested government, as well as a
mmher of individuals and international organizations, the
group of four experts submitted their draft In April, i960.
Intensive inter-governmental negotiations on the 01C0 then
begin in Way and continued almost without break until December
14, when representatives of the twenty governments signed the
OSCD Convention.
The result of this work is the Convention before you. It
provides a solid foundation for the 08C8. It clearly states the
basis on which the industrialized nations of north America and
Secretary of State.
The OECD was an American proposal put forward by Fresident
Eisenhower late in 1959. It was an initiative to which the
Western European countries and Canada quickly and enthusiastically responded.
The old Organization for European Economic Cooperation,
originally established in 1948 to assist In carrying out the
Marshall Flan, had completed the task It was designed to fulfill.
Western Europe had been restored to vigorous health. Discriminatory trade quotas were rapidly disappearing. Convertibility of the major European currencies had been reestablished.
This era of transatlantic relations had drawn to a close.
In this earlier period the United Statea and Canada were
associated with the Europeans in their efforts through the OEEC,
but were not full partners. This was proper, for the Job to
be done required a breakthrough in intra-European cooperation,
with the United States and Canada cast in the role of providing
material and moral support for this great cooperative effort
of Europe to help itself.
How we are entered upon a new era and face new challenges.
In this era intra-European cooperation remains Important and
must be preserved. But, beyond this, the Industrialized
countries of Western Europe and North America must henceforth
work in full partnership to strengthen the economy of the
entire free world and to provide the developing countries with
the resources they so sorely need If freedom is to be preserved.
HOLD FOR RELEASE ON DELIVERY
EXPECTED ABOUT lliOO A.M. EST
6,
Statement by the Secretary of the Treasury»
Douglas DillonAbefore the
genateHForel^n Relations Committee on
Hatification of the Qi^D Convention/
Tuesday, February 14. 19Q1
I am glad to appear before the Foreign Halations Committer
to urge Senate approval of the Convention for the Organization
for Economic Cooperation and Development, tfhen I last appeared
before the Committee on this subject, we were in the middle of
the negotiations and while the main outlines of the OECD
Convention were already clear many details remained to be
ironed out. Wow the Convention has hmn
signed and if before
the Senate for its advice and consent to ratification.
The concept of the OECD reflects an historic change in
our relations with Western Europe and in the relations between
the industrialized and developing countries. The OECD would
be the main instrumentality for welding stronger links between
the countries of Worth America and Western Europe in meeting
the enormous challenge they face In advancing the cause of
economic growth and freedom throughout the free world. Only
through working together can we bring our tremendous economic
resources, technical competence, and scientific ability fully
to bear on the problems of today1s revolutionary world.
Before indicating in more detail the kind of cooperation
through the OECD of major concern to the Treasury Department,
I should like to mention briefly the origins of the OECD
Convention, with which I was closely associated as Under
D-22
HOLD FOR RELEASE ON DELIVERY
EXPECTED ABOUT 11:00 A.M. EST
£2
Statement by the Secretary of the Treasury,
Douglas Dillon,'.before the
Senate foreign Relations Committee on
Ratification of the OECD Convention,
Tuesday, February "It 4, 19^1
I am glad to appear before the Foreign Relations Committee
to urge Senate approval of the Convention for the Organization
for Economic Cooperation and Development. When I last appeared
before the Committee on this subject, we were in the middle of
the negotiations and while the main outlines of the OECD
Convention were already clear many details remained to be
Ironed out. How the Convention has been signed and Is before
the Senate for its advice and consent to ratification.
The, concept of the OECD reflects an historic change In
our relations with Western Europe and in the relations between
the industrialized and developing countries. The OECD would
be the main instrumentality for welding stronger links between
the countries of Morth America and Western Europe in meeting
the enormous challenge they face in advancing the cause of
economic growth and freedom throughout the free world. Only
through working together can we bring our tremendous economic
resources, technical competence, and scientific ability fully
to bear on the problems of today1® revolutionary world.
Before indicating in more detail the kind of cooperation
through the OECD of major concern to the Treasury Department,
I should like to mention briefly the origins of the OECD
Convention, with which I was closely associated as Under
D-22
CQ
_ 2 —
Secretary of State.
The OECD was an American proposal put forward by Fresident
Eisenhower late in 1959. It was an Initiative to which the
Western European countries and Canada quickly and enthusiastically responded.
The old Organization for European Economic Cooperation,
originally established in 1948 to assist in carrying out the
Marshall Flan, had completed the task It was designed to fulfill.
Western Europe had been restored to vigorous health. Discriminatory trade quotas were rapidly disappearing. Convertibility of the major European currencies had been reestablished.
This era of transatlantic relations had drawn to a close.
In this earlier period the United States and Canada were
associated with the Europeans in their efforts through the OEEC,
but were not full partners. This was proper, for the job to
be done required a breakthrough in Intra-European cooperation,
with the United States and Canada cast in the role of providing
material and moral support for this great cooperative effort
of Europe to help Itself.
Now we are entered upon a new era and face new challenges.
In this era intra-European cooperation remains Important and
must be preserved. But, beyond this, the industrialized
countries of Western Europe and North America must henceforth
work in full partnership to strengthen the economy of the
entire free world and to provide the developing countries with
the resources they so sorely need if freedom is to be preserved.
• 3 •
QA
O "T
In the fall of 1959 Western Europe, newly strong and
confident, appeared ready to share fully with us the responsibilities we had shouldered virtually alone through most of the
post-war period. Accordingly, President Eisenhower, in his
meetings in Paris in December of that year, with President
de Gaulle, Chancellor Adenauer and Prime Minister Kacmillan,
suggested that the time had come to reorganize and revitalize
trans-Atlantic relations so as to redirect the energies of
the industrialized countries toward the economic improvement
of the free world as a whole.
Out of these four-power talks emerged consultations and
negotiations among all 18 of the member countries of the OEEC,
the United States and Canada.
A group of four experts was created to draft the charter
of a successor organization to the OEEC which the United States
and Canada could Join as full members. After consulting representatives of the twenty interested government, as well as a
number of individuals and international organizations, the
group of four experts submitted their draft in April, i960.
Intensive inter-governmental negotiations on the OECD then
began in May and continued almost without break until December
14, when representatives of the twenty governments signed the
OECD Convention.
The result of this work is the Convention before you. It
provides a solid foundation for the OECD. It dearly states the
basis on which the industrialized nations of North America and
- 4 -
re.
Western Europe are Joining together and the reasons why they
are doing so.
It provides the means for converting common
policy objectives into effective action. Yet it does not restrict or Impinge upon the sovereign rights which each of the
Member Countries is determined to preserve. In short, the Convention provides a simple, sturdy platform from which the OECD
countries can launch cooperative and constructive action to
meet th© major economic problems facing us today.
The Treasury Department is especially concerned with two
types of measures to which the functions of the OECD would be
relevant!
Those that will invigorate our economy and those that
will improve our balance of payments position. Such measures
are now closely interrelated.
For the first time in over thirty
years, and to a larger extent than ever before in our history,
our success in pursuing these objectives is dependent on the
understanding and cooperation of the industrialized countries
of Western Europe. In turn their economies are heavily Influenced
by our actions here at home. We must take into account the
international repercussions of actions which we take here at
home since the reactions they may provoke abroad could easily
frustrate our objectives. The only answer Is close, continuing
consultation and cooperation with Canada and the countries of
Western Europe. The OECD is designed to provide the forum for
this consultation and cooperation.
As an example, the effectiveness of the program Just
announced by the President to improve our balance of payments
will depend to a considerable degree on the extent to which the
- 3 -
QQ
- -J
major Western European countries pursue compatible policies.
It is in this connection that we in the Treasury Department
think the OECD will be especially useful. In the OECD, we
shall be able to have informal and frank consultations with
policy-making officials from our partner countries. Such consultations should enable the OECD countries to move in harmony
toward the common objective of economic growth. Also such consultations should result In measures to contribute to the
solution of the United States balance-of-payments problem.
The President, in his message to Congress on balance of
payments and gold, set forth our program to ease the problem
of short-term funds as well as to correct the basic payments
deficit and achieve longer-term equilibrium. Most of the
measures described by the President will be more effective
if complementary policies are followed by the major OECD
countries. Some of the measures can be effective only in
cooperation with these countries.
To Illustrate the need for better International coordination of economic and financial policies I would like to refer
to last year's movements of international short-term capital.
During the first half of i960 our balance-of-payments
deficit on an annual basis was $2.7 billion —
from the level of $3.8 billion in 1959•
down markedly
Last Spring our
Federal Reserve discount rate was at 40, the German Bundesbank
rate was 40, and the Bank of England rate was 50. In other
words, all those rate3 were close together. Then, as business
began to slow in the United
States, our Federal Reserve
began to ease credit and reduced its rate first to 340, and
later to 30. Meanwhile the German Bundesbank, with Its eye
on the domestic boom In Germany, and with the objective of
controlling Inflation at home, Increased its discount rate to
50 In June. The Bank of England promptly followed suit and
upped Its rate to 60.
These actions brought about a sharp imbalance in shortterm interest rates. The results were bad for all concerned.
A flood of short-term funds left New York seeking the higher
return in Frankfurt and London. This sharply Increased our
balance-of-payments deficit from an annual rate of $2.9 billion
In the first six months to a rate of $4.7 billion in the second
six months. This sudden and sharp increase shook confidence
in the dollar and the result was a substantial increase In
the outflow of gold. This In turn brought on the speculative
outbreak In the private gold market in London last October when for
a day or tv?o gold aold at $40 an ounce. Meanwhile the large
Inflow of American funds frustrated the efforts of the German
authorities to tighten up on investment in Germany. When this
became clear the German and British authorities cut back their
discount rates, the flow of short-term capital slowed and
confidence was gradually restored.
The lesson-'to be learned by all this is that in these days
of convertible currencies there must be close cooperation and
coordination between our financial and monetary authorities and
those of the major Industrialized countries of Western Europe.
This is now recognized on all sides. The OECD is the forum
in which this coordination can be worked out and through which
we can avoid similar episodes in the future. As such It is a vitally
Important element in our drive to right our payments deficit
without infringing on the actions that must be taken to reInvigorate our economy at home.
The OECD will also provide an especially Important
mechanism for the industrialized countries of North America
and Western Europe to work in concert to contribute to sound
economic growth in the less-developed countries. The extreme
poverty of these countries cannot be allowed to continue. The
gap between standards of living in the industrialized OECD
countries and those in the less-developed countries is large
and widening.
To narrow this gap will require great effort and considerable
resources*
Economic development requires the formation of
capital on a large scale. While the greatest portion of this
capital must be derived from savings on the part of the lessdeveloped countries, these countries also need large help
from the industrialized countries. By fostering consultation
and coordination among member oountries, the OECD can contribute
greatly to increasing and Improving the economic, technical,
and educational assistance extended to the less-developed
countries.
It can help to ensure that all the Industrialized
- 8-
£Q
countries carry their full and fair share of the burden, Including those which up to now have not fully met their responsibilities in this field.
In this respect also we In the
Treasury Department look on the OECD as an essential instrument
of financial policy.
To summarize the role of the OECD, in terms of tasks
which the President has stressed in his message on balance of
payments and gold
—
It will be a major forum for efforts to harmonize
the financial and economic policies for growth and
stability of most of those industrialized nations of
the world whose economic behavior significantly influences the course of the world economy and trend of
international payments;
—
It will provide a solid framework for intensive and
frequent international consultations on the financial
and monetary policies which must be pursued in order
to achieve and maintain better balance in the international payments position*
—
Finally, It will bring into being an organization of
vital importance for assisting, on a cooperative basis,
the developing countries of the free world.
- 3 -
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inte
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whi
Treasury bills are originally sold by the United States is considered to be in
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a
of discount at which bills issued hereunder are sold is not considered to accr
until such bills are sold, redeemed or otherwise disposed of, and such bills a
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in h
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received
upon sale or redemption at maturity during the taxable year for which the retu
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 -
decimals, e. g., 99.925. Fractions may not be used. It is urged that 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
p&)
bills dated
November 25, 1960
'
May 25, 1961
!__*}
p£)
, ( 91
days remaining until maturity date on
$_3$
) 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 Etebruary 25, 1961 , in cash or
$__x
other immediately available funds or in a like face amount of Treasury bills maturing February 25, 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 exemtstio-k^ as such, and loss
^^•'/.'•••cw^Hmw;^
TREASURY DEPARTMENT
Washington
!>
IMMEDIATE RELEASE, 4:00 P.M., EST,
Wednesday, February 15, 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;
cash and in exchange for Treasury bills maturing February 23, 1961 y in the amo
of $1,605,040,000 , as follows:
91
-day bills (to maturity date) to be issued February 25, 1961
_____
t
__^
in the amount of $ 1,100,000,000 , or thereabouts, represent X2J&P
ing an additional amount of bills dated November 25. 1960 t
and to mature
May 25, 1961
, originally issued in the
amount of $501,794,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $500,000,000 , or thereabouts, to be dated
x$__£
~
xfcl&jT
February 25, 1961
!__$
, and to mature August 24. 1961
.
i_i)
The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closin
hour, one-thirty o'clock p.m., Eastern Standard time, Mon^vr TM~^ gn, loffi ._
Tenders will not be received at the Treasury Department, Washington. Each tende
must be for an even multiple of $1,000, and in the case of competitive tenders
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
WASHINGTON, D.C
IMMEDIATE RELEASE,
Wednesday, February 15, 1961.
D-23
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 February 23,19^1, in the amount of
$1,603,040,000, as follows:
91-day bills (to maturity date) to be issued February 23, 196l,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated November 25,i960, and to
mature May 25, 196l,
originally issued in the amount of
$501,794,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
February 23, 19ol,and to mature August 24, 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) . ATenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, February 20, 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.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
November 25,1960, (91 days remaining until maturity date on
May 25, 19§l)
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 February 23, 196l,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturingFebruary 23 > 196l. 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 k^k (b) and 1221 (5) of the Internal
Revenue Code of 195^ the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) Issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original Issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during0O0the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe the terms of the Treasury bills and govern the conditions
Federal
of theirReserve
issue. Bank
Copies
or Branch.
of the circular may be obtained from any
74
February 3, 1961
immnmw to m. MARTIS _. MOORE:
mi "mill M " ~ " I
IIIWIiiliniTi IT 'mgiffli 111 iiini7S5.i7lMir.iTiT I ninTi
miiHrmwuSSm
The following transactions wear® made in direct and guaranteed securities
of the government for Treasury Investment and other accounts during tha aonth
of Januarys
Purchases ................. $38,507,000
Sales 4JL.lM.Bm
NET mm
5,615,$00
TREASURY DEPARTMENT
7
_ME_»MMUUBii»iwwj«_M_m«M^
WASHINGTON, D.C
IMMEDIATE RELEASE, /
Monday, January iG, yl$6l.
"__\L__f
A 10#Q
During Duu*wttLiui 19^0, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net {oanfaM-ts by the
Treasury Department of
oOo
TREASURY DEPARTMENT
7S
i?lW_BgWIIIW_Mflffl__Zg»_i^^
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, February 15, 196l.
D-24
During January 1961, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted in net sales by the Treasury
Department of $5,615,800.
0O0
-7
V 1
1 -
^MEDIATE RHLEASJ;,
Wednesday, February 15, 1S61.
The Treasury Department today announced the subscription and allotmeat figures with respect to the current offering of $6,900 million, or
thereabouts, of 3-1/44 Treasury Botes of Series G-1962, due August 15,
1062.
Subscriptions for the notes from States, political subdivisions, or
instrumentalities thereof, public pension and retirement end other public
funds, international organisations ia which the United States holds
membership, foreign central banks and foreign States, Government Investment Accounts, and the Federal Reserve Banks totaled $4,383,589,000 and
were allotted in full, in accordance with the offering announcement.
Subscriptions from all others totaled $14,619,474,000 and were allotted
20 percent with subscriptions for $10,000 or less being allotted In full
and those for store than $10,000 being allotted not less than $10,000.
Subscriptions and allotments were divided among the several Federa
Reserve Districts and the Treasury as follows:
federal Reserve
District
Total Subscriptions Received
Total
Allotments
Boston
Hew York
Biilsdelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Govt. Inv. Accts.
$
592,733,000
10,728,131,000
413,800,000
972,311,000
476,755,000
559,881,000
2,143,803,000
386,500,000
289,239,000
490,227,000
506,100,000
1,412,697,000
26,131,000
750,000
$ 127,426,000
5,290,193,000
88,009,000
232,314,000
124,425,000
126,402,000
475,127,000
98,202,000
72,770,000
169,870,000
120,661,000
390,172,000
8,119,000
750,000
$18,983,063,000
$7,324,440,000
TOTAL
„fal
TREASURY DEPARTMENT
.BVW i wai»t&?w—«ew
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, February 15, 1961.
D-25
The Treasury Department today announced the subscription and allotment figures with respect to the current offering of $6,900 million, or
thereabouts, of 3-1/4$ Treasury Notes of Series G-1962, due August 15,
1962.
Subscriptions for the notes from States, political subdivisions, or
instrumentalities thereof, public pension and retirement and other public
funds, international organizations in which the United States holds
membership, foreign central banks and foreign States, Government Investment Accounts, and the Federal Reserve Banks totaled $4,363,589,000 and
were allotted in full, in accordance with the offering announcement.
Subscriptions from all others totaled $14,619,474,000 and were allotted
20 percent with subscriptions for $10,000 or less being allotted in full
and those for more than $10,000 being allotted not less than $10,000.
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows:
Federal Reserve Total Subscrip- Total
District
tions Received
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Govt. Inv. Accts.
TOTAL
Allotments
$
592,738,000
10,728,131,000
412,800,000
972,311,000
476,755,000
539,881,000
2,148,803,000
386,500,000
289,239,000
490,227,000
506,100,000
1,412,697,000
26,131,000
750,000
$
127,426,000
5,290,193,000
88,009,000
232,314,000
124,425,000
126,402,000
475,127,000
98,202,000
72,770,000
169,870,000
120,661,000
390,172,000
8,119,000
750,000
$18,983,063,000
$7,324,440,000
S T A T U T O R Y D E B T LIMITATION
AS OF ______i_x_3Ju_J^ Washington, Igb-
; J
l6
'196l_
IonSection
21 of Second Liberty Bond Act, as amended provides that .^^J^^^^^Z^^^^^
,f that Act. and the face amount of obligations guaranteed as to P ™ c * ? * " j , 1 * ; ^
mteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the W ? B ™ | J ^ cSrVnt'r*
Act of P e 30, 1959; uTs.C,, title h sec, 757b), ^ " f ^ V f f ^ ^
lemption value of any obligation issued on a discount basis which ts "deenmble pr*^l° ^ " J v i d e s .tha^ d u r i Q g the ^ i o ,
t^£^p\:»ii k-jsz;i^^ti M™ 1 ?^^^
.& be «*«_, ^
|8,00M00,00a ^ ^
^ ^ ^ ^
^ ^ ^ obligation, outstanding and the face amount which can still be issued unde,
this limitation :
Total face amount that may be outstanding at any one time
$ 2 9 3 »000,000,000
Outstanding Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $39 , 7*0 .839,000
Certificates of indebtedness
Treasury notes
BondsTreasury
'.
* Savings (current redemp. value)
Depositary.
R.E.A. series
Investment series
Special FundsCertificates of indebtedness
Treasury notes
.,
Treasury bonds
Total interest-bearing
Matured, interest-ceased
18,^1,629,000
51,308,933,000
79.775,969,250
^f »2Hv , *-JJ ,62.2
135.96^,000
12,855,000
6,11^,683,000
7, H 7 » 591, 000
9,168,993,000
27 , 537 ,385,000
$109,^9^01,000
133 ,282,60^,875
^3.823.969.000
2 8 6 , 6 0 0 ,97*+,875
H ^ O j O Q / , fyO
}
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
XM3dcI.nt....U..DevJel....4ss'n..
Total
51,270,295
760,8^*5
2,^98,000,000
57..-652.20.0....
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A.&.._€..S.tad..BdS . 1 5 8 , 8 0 ^ , 2 5 0
Matured, interest-ceased
1,682,^-25
Grand total outstanding .„
Balance face amount of obligations issuable under above authority
2.607,683.3^
289,635.265,965
160,^86,675
Reconcilement with Statement of the Public Debt...^.^!^.^...?.i.»...l?.„i
(Date)
(Daily Statement of the United States Treasury, J a n u a r y 3 1 1 1 9 6 1
,.
(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
289,79^7^-*"^
3,20^,2^7,360
j
2 9 0 ,035,560 ,39°
1 5 0 .^OOfOf J.
2 9 0 , _yo,Lr4Y ,\)(J
*K)0»2;TT .^"J2.
289,795,752,6^0
D-26
STATUTORY D E B T LIMITATION
AS OF __B______1 w-ehj
Feb._l6jl26l_
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under
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 redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the optionof 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 I, I960 and ending June 30, 1961, the above limitation ($285,000,000,000) 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 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 , 7^3 » 839 ,000
Certificates of indebtedness
Treasury notes
BondsTreasury
'.
* Savings (current redemp. value)
Depositary.
R.E.Ao series
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
18,44l,629»000
51,308,933,000
$109,494,401,000
7 9 ,775 ,969 ,250
47,243,133,625
135,964,000
1 2 ,855 , 0 0 0
6,114,683,000
7 , H 7 » 591, 000
9,168,993,000
2 7 ,537 ,385 , 0 0 0
133,282,604,875
43,823.969.000
2 8 6 ,600 , 9 7 4 , 8 7 5
4 2 6 ,607 »750
51,270,295
760,845
2,498,000,000
XwofkInt....,.X.DsvJel....Ass.|.nTotal
57.,6.52*20.Q....
2,607,683.340
289,635.265,965
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H. A. &..UC.. S.tad.Bds .
158,804,250
Matured, interest-ceased
1,682,425
Grand total outstanding
:
Balance face amount of obligations issuable under above authority,.,
160,486,675
Reconcilement with Statement of the Public Debt .V..........*,
(Dnte)
(Daily Statement of the United States Treasury, ^J}}}.f,}Z..^}:^..}:?.~~ )
(Onto)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury.
Total gross public debt and guaranteed obligations.
Deduct - other outstanding public debt obligations not subject to debt limitation
2 8 9 ,795 . 7 5 2 , 6 4 0
3,204,247,360
290,035,560,398
I O U ,*4-CO , Of 5
2 9 0 , ±yO , 0 4 / , 0 7 3
4 0 0 t 294 ,433
289.795.752,640
D-26
81
RELEASE A. H. WttBfcPMB, faesday« February 21, 1961.
The Treasury Department announced last evening that the tendera for tiro series of
Treasury bills, one series to be an additional issue of tho bills da tod Moveaber 25,
I960, and the other aeries to b« dated fobraary 23, 1941, which were offered on
February 15, wore opened at tho Federal Reserve Banks on February 20, Tenders vers in
vited for #1,100,000,000, or thereabouts, of 91-day bills and for 1500,000,000, or tht
aborts, of 182-day bills, The details of tho two series are as follows*
91-day Treasury bills
182-day Treasury bUla
mm*-: m ACCEPTED
aatarim August 24, 1961
coM^rirrF; BIOSS
Approx. EquXtT
Annual Hate
^riee
Fries
Annual Bait
High
99.383 a/
Average
99. m
99.369
c.hkl%
2.$m
i.kmy
96.657
98.637
98.64a
2.65#
2.6961
2.680*1/
one tender of #300,000
V, Excepting
percent of the amount of 91-day bills bid for at the low priee
2? percent of the zmmmt
accepted
of 162-day bills bid for at the low pries was accepted
TOfAL TEW5KS APP.rj|D FOR km AGGHPffD Ml flOBRAL IBSBJrVS DISTRICTS*
gistriot
Applied for ^ Accepted
_gtfM*»,ir
&9W**
Boston
1 16,273,000 # 6,273,000
$32,296,000
• 17,894,000
lew fork
990,304,000 405,884,000
1,402,481,000
715,841,000
fhiladelphia
9,485,000
4,285,000
29,270,000
14,194,000
25,7ia,ooo
15,741,000
Cleveland
34,468,000
31,418,000
2,614,000
2,614,000
.Richmond
16,678,000
12f67i,000
4,680,000
4,070,000
Atlanta
28,885,000
27,66£,O0O
70,667,00©
Chicago
28,667,000
211,128,000
139,108,000
St. Louis
5,362,000
4,762,000
22,036,000
20,536,000
MioneaDolis
6,720,000
3,220,000
21,258,000
I6,3ff,©00
Kansas City
17,845,000
10,815,000
39,106,000
29,806,000
Dallas
4,183,000
4,183,000
15,855,000
15,855,000
0002/
San Franeieco
$2,004,676,000 $1,100,352,
27,01^000
Inelade®
f239,608,OO0 fsoaeenpetliive tenders accepted^1,180,807,000
at the average pries of 99.J*
fomu
Includes $51,560,000 noncompetitive tenders accepted at the average pries of 9bM
On a coupon Issue of the sans length and for the saate a«ount invested, the return en
these bills would provide yields of 2.55#» *** the 91-day bills, and t.76£# ftr *
162-day bills. Interest rates on bills are quoted in terms of bank discount vita
the return related to the face amount of the bills payable at maturity rather thin
the amount invested and their length in actual number of days related to a 360-fcJ
year* In contrast, yields on certificates, notes, and bonds are computed in Ur*
of interest on the amount invested, and relate the nus&sr of days remaining ia *»
interest payment period to the actual number of days in the period, with semiannu*
compounding if more than one coupon period is involved.
m>y
I
1
TREASURY DEPARTMENT
_ffiS3___S2__3
S_____S3X_!K3SS2_
8?
iaES^s&m^rsassimE^^
WASHINGTON, D
RELEASE A. M^ NEWSPAPERS, Tuesday, February 21, 1961.
D-2?
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 November 25,
I960, and the other series to be dated February 23, 1961, which were offered on
February 15, were opened at the Federal Reserve Banks on February 20. Tenders were Invited for $1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills. The details of the two series are as follows:
RJLNGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing May 2$, 1961
Approx, Equiv.
Price
Annual Rate
182-day Treasury bills
maturing August 2k, 1961
Approx. Equiv.
Price
Annual Rate
99.383 a/
99.364
99.369
98,657 2.656£
98.637
2.696^
98.641
2.6882 1/
2.4412
2.5162
2.4962 1/
a/ Excepting one tender of $300,000
59 percent of the amount of 91-day bills bid for at the low price was accepted
27 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
*
32,296,000
1,482,481,000
29,270,000
34,468,000
16,678,000
28,885,000
211,128,000
22,036,000
21,258,000
39,806,000
i5,855,ooo
70,515,000
$2,004,676,000
Accepted
Applied For
Accepted
Accep
1
16,273,000 $ 6,273,000
»
17,894,000
990,304,000
715,841,000
405,884,000
9,485,000
14,194,000
4,285,000
25,741,000
31,418,000
15,741,000
2,614,000
12,678,000
2,614,000
4,680,000
27,665,000
4,070,000
70,667,000
139,108,000
28,667,000
5,262,000
20,536,000
4,762,000
6,720,000
16,392,000
3,220,000
17,845,000
29,806,000
10,815,000
4,183,000
15,855,000
4,183,000
27,033,000
58,965,000
l___i_000 c/
$1,100,352,000 b/ $1,180,807,000 $500,045,000
)/ Includes $239,608,000 noncompetitive tenders accepted at the average price of 9
5/ Includes $51,560,000 noncompetitive tenders accepted at the average price of 98.641
[/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.55$* for the 91-day bills, and 2,762, 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.
- 3-
83
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inte
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whi
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a
of discount at which bills issued hereunder are sold is not considered to accr
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in h
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retu
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
-2 -
84
-SBOG_(HgEC-BQ--C
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incor
rated banks and trust companies and from responsible and recognized dealers in
ment securities. Tenders from others must be accompanied by payment of 2 percen
the face amount of Treasury bills applied for, unless the tenders are accompani
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by t
Treasury Department of the amount and price range of accepted bids. Those submi
ting tenders will be advised of the acceptance or rejection thereof. The Secret
of the Treasury expressly reserves the right to accept or reject any or all ten
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $ 200,000 or less for the additi
bills dated December 1, 1960 , ( 91 days remaining until maturity date on
$ ^
#?d*k)c
June 1, 1961
) and noncompetitive tenders for $100,000 or less for the
$S£
'
(iaadc
182 -day bills without stated price from any one bidder will be accepted in full
x$2_$
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 b
made or completed at the Federal Reserve Bank on March 2. 1961 > in cash or
other immediately available funds or in a like face amount of Treasury bills ma
ing March 2, 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 exemnDtioa- as such, and l
8
EKOCGOQBSEOTXH
TREASURY DEPARTMENT
Washington
J-JS-
IMMEDIATE RELEASE, 4!00 V.M., ECg,
Tuesday, February 21, 1961
.
re
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> f
cash and in exchange for Treasury bills maturing
March 2, 1961
, in the amount
xpEJE
of $ 1,506,404,000 , as follows:
m—
91 -day bills (to maturity date) to be issued March; 2, 1961 ,
in the amount of $ 1,000.000,000 , or thereabouts, representing eun additional amount of bills dated December 1, 1960 >
and to mature June 1, 1961 , originally issued in the
W
amount of $ 500,211.000
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000.000 f or thereabouts, to be dated
March 2, 1961 , and to mature August 51. 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
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closi
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, February 27. 196
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
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
•„i„___ii'.'iWff.'tf_«_;i
WASHINGTON, D.C
IMMEDIATE RELEASE,
Tuesday, February 21, 1961.
D-28
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 March 2, 1961,
in the amount of
$1,506,404,000, as follows:
91-day bills (to maturity date) to be issued March 2, 1961,
in the amount of $1,000,000,000, or thereabouts, representing an
additional amount of bills dated December 1, i960, and to
mature June 1, 1961,
originally issued in the amount of
$500,211,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
March 2, 1961,
and to mature August 31, 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, February 27,196*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 decimals, e. g., 99-925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by
Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible- and recognized dealers in Investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves.the right to accept or reject any o
all tenders, in whole or in part, and his action in any such respec
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
December 1, i960, (91 days remaining until maturity date on
June 1, 19ol)
and noncompetitive tenders for |100,000
or less for the l82_„ay 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 March 2, 196l,
in cash or other immediately available funds or In a like face
amount of Treasury bills maturing March 2, 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 exclude
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereund
need include in his income tax return only the difference between
the price paid for such bills, whether on original Issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during
the taxable year for which th
0O0
return is made., as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice
prescribe the terms of the Treasury bills and govern the conditions
Federal
of theirReserve
issue. Bank
Copies
or Branch.
of the circular may be obtained from any
ffUW
At ft. ^ S M r » > i f i » ^ ^ a i f o b r u a r g j a ^ ^
TIM fraasury r:®pari®®o& aaasunaeii last evening that the tenriera for two series of
f**asury tills, one aarisa to kg an additional issue of the bills datod £#*#$#* 1, X960
aad tfea other sarins to bo datadfcareh2 S l?6l, which war* offered on February ft, wtn
Qpaned at tha Faderal R«*«ff*e Bmm ou February 27« T®mi®r& *•** invited for
11,000,000,000, or thereabout®, of 91-day bills mi for 1500,000,000, or thereabouts, «f
l«t~day billi. Hi* details of tfca two a«rlis art as followst
any or
BASSE OF AGCBFt-ft
91-£ay iTtMury billa
s
l82-4ay Treasury bill*
C&tf$?f?fSt 1X881
watttrlng Juna 1, 1961
t
attarlag hnsmet 31, 196l
Approx. £<juiv.
s
Approx. J£q*iv,"~
Price
Annual Pate
t
Price
Annual Rati
t&& 99.352 a/ 2.56W I ' 96.612 b/ 2.7h$%
>n March 2, 1961,
a/ftteqptiugtwo trader© totaling: 8500,000
' in a like
W Sxcaptlnft one tender of $200,000
Ife percent of tbe teouat of 91-day bill® bid for at the low price was accepted
1? percent ©f the amomst of M ^
bill* bid for at the low price was aeeaptad
:
:
mm wmm
m^hm m
mmm
iff w^^ m.mm'1msmnr
Wrlot „ Allied For , „ Aggtg .__ * Allied ,l» letted
VStcsT
1 23,Ml,GOO
10,303,000 J
7,39li,0O0
H ^ M «
* » fork
1,531,767,000
" H5,l*'?5,000 i
e?6,Hi7,0OO
393,$67,000
8iila4elphiA !
2fc,S69,C
9,369,000 P
7 , l 6 9 , 0 G C T ^ 2,169,000
Cleveland
30,561,000
18,517,000 I
35,037,000
Ui,a66,000
m*tatoiKf
Ili,l85ta00
J 31, VOM 1
1,187,000
1,062,000
Atlaata
32,636,0
?6,?36,000 » .
fe,291,000
fe,onf000
Osieaf©
216,?00 9 0OJ
135,365,000 *
614,260,000
3M$5*W
M. Louis
l6,58o,0vQ
. 15,080,000 *
5,517,000
ii,5*9,000
ffinaeapoliii
15,600,000
9,582,000 J
1^,310,000
1,710,000
leases city
37,867,000
25,531,000 1
7,057,000
5,857,000
Balls®
lk,2$B,000
1S^5,00Q r
t,600*000
2,860,000
SanFramiaoo
_ 7^t0"6jtQQ0
,, ,? f ^fU0O. * . ?7fBPjqg_
,.^fW*S j
tt,0*3,050,000ft,vCC,23,,000£/ 11,053,299,000
f500,090,000 j/
XatiM** lm,80fe,000 noncompetitive tenders accepted at tha average price of 99.M
Includes ff;3s6?lf,000 noncompetitive tender* accepted at tha average price of 98#S#
0a a ttqpqm iswe of tha sasse m r a ®r& for the stee a-ouni invested, tho return "
these bills utilf provide yields of %.&*>%. tor tha 91-day bills, ana tMfo to
182-day bill*. Interest rates en bills ara ciuotad 1B ter«» of bade discount with
tha rwturm relate to tH« faca amo^t of the bills payabla at maturity ratasr &*»
tha amount Investad a m thai* lanrth 1« aotusl aosibar of days ralatsi* to a 360-^V ^
yaar. In ©otstrast, yia24a O B ©artlfloatas, uotas, aud bomls ara eostputad in tsrrt ^
«f istartit oa «fea asuraist isvastad, M i ralsta tha naaibor af cays ra»alM|i| is •» |
intarost pa^as* p«ri*# to ttia aetiml nonbar of days i*j th* pariod, with ssaiaaad
eo«p#^idi«« IT ^sra tha« ona coupon |*riod la torolvad.
s
•3
____C_332_
DEPARTMENT
SSEgSE*'"', -IfflWirglaB
Fy^™pw,?^.w»a»_«^^
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS, Tuesday, February 28, 1961.
D-29
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 December 1, i960,
and the other series to be dated March 2, 1961, which were offered on February 21, were
opened at the Federal Reserve Banks on February 27. 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:
RAN3E OF ACCEPTED
COMPETITIVE BIDSs
High
Low
Average
a/
B"/
B_
19
91-day Treasury bills
maturing June 1, 1961
Approx. Equiv.
Price
Annual Rate
99.352 a/
99.342 "
99.344
182-day Treasury bills
maturing August 31, 196l
Approx. Equiv.
Price
Annual Rate
98.612 b/
98.590
2.564£
2.6032
2.5942 1/
98.595
2.7452
2.7892
2.7792 1/
Excepting two tenders totaling $500,000
Excepting one tender of $200,000
percent of the amount of 91-day bills bid for at the low price was accepted
percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BI FEDERAL RESERVE DISTRICTS?
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
i
Applied For
$
23,461,000
1,581,767,000
24,869,000
30,561,000
14,185,000
32,636,000
216,200,000
16,580,000
15,600,000
37,867,000
14,258,000
75,096,000
$2,083,080,000
Accepted
10,203 ,000
683,495 ,000
9,869,000
18,517 ,000
14,131,000
26,986,000
135,365 ,000
15,080,000
9,582,000
25,831,000
14,195,000
37,584,000
$1,000,838,000
*
t
t
J
:
:
:
:
:
:
a
2
c/
Applied For
$
7,594,000
876,147,000
7,169,000
35,037,000
1,187,000
4,291,000
64,260,000
5,517,000
4,310,000
7,057,000
2,860,000
37,870,000
$1,053,299,000
Accepted
7,594,000
393,567,000
2,169,000
14,886,000
1,062,000
4,091,000
34,855,000
4,529,000
1,210,000
5,857,000
2,860,000
27,410,000
$500,090,000 d/
<y Includes $201,804,000 noncompetitive tenders accepted at the average price of 9
/ Includes $43,674,000 noncompetitive tenders accepted at the average price of 98.595
1/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.652, for the 91-day bills, and 2.862, 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
- j i r- ff w,oir^ than one coupon period is involved.
- 3 ___IKXXXHMKXKXKH
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inter
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whic
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the am
of discount at which bills issued hereunder are sold is not considered to accru
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in hi
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retur
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2b'MWiXMWiM'A&WA.
decimals, e. g., 99.925. Fractions may not be used.
It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incorp
rated banks and trust companies and from responsible and recognized dealers in
ment securities. Tenders from others must be accompanied by payment of 2 percent
the face amount of Treasury bills applied for, unless the tenders are accompanie
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submit
ting tenders will be advised of the acceptance or rejection thereof. The. Secret
of the Treasury expressly reserves the right to accept or reject any or all tend
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $ 200,000 or less for the additio
bills dated
December 8, 1960
x^d
> (
91
days remaining until maturity date on
HWT
June 8, 1961
) a-d noncompetitive tenders for $ lOO.QOQ or less for the
182 -day bills without stated price from any one bidder will be accepted in full
~X3__5T
at the average price (in three decimals) of accepted competitive bids for the respec-
tive issues. Settlement for accepted tenders in accordance with the bids must b
made or completed at the Federal Reserve Bank on March 9, 1961 , in cash or
x^5
other immediately available funds or in a like face amount of Treasury bills maturing March 9, 1961 . Cash and exchange tenders will receive equal treatment.
X)_S$C
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 asv exemptioxL, as such, and l
Q1
o _.
KKKi___(3_______t
TREASURY DEPARTMENT
Washington
^
IMMEDIATE RELEASE, 4:00 P.M., EST, fC/ ~ <-^ 0
Wednesday, March 1, 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>
cash and in exchange for Treasury bills maturing March 9, 1961 , in the amount
mr
of $ 1,600.724,000 , as follows:
91 -day bills (to maturity date) to be issued March 9. 1961 ,
in the amount of $ 1,100.00^000 , or thereabouts, representing an additional amount of bills dated
December 8. 1960
,
sr
and to mature
June 8, 1961
, originally issued in the
amount of $ 500,255,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
March 9, 1961 , and to mature September 7. 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
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma
value).
Tenders will be received at Fed.eral Reserve Banks and Branches up to the closi
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, March 6. 1961
SpEEJ
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders
price offered must be expressed on the basis of 100, with not more than three
IMMEDIATE RELEASE,
Wednesday, March 1, 1961.
D-30
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 March 9, 1961,
in the amount of
$1,600,724,000, as follows:
91-day bills (to maturity date) to be issued March 9, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated December 8, i960, and to
mature June 8, 1961,
originally issued in the amount of
$5V235,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
March 9, 1961,
and to mature September 7, 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, March 6, 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.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, In whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
December 8.1960, (91 days remaining until maturity date on
June 8, 19ol)
and noncompetitive tenders for $100,000
or less for the l8_-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 March 9, 19^1,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturingMarch 9,19^1.
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
nAn
return is made, as ordinary gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe the terms of the Treasury bills and govern the conditions
Federal
of theirReserve
issue. Bank
Copies
or Branch.
of the circular may be obtained from any
- 2 Mr. Donnelley was married in mmmms^m^^m
1943 to
Lucia Tarquinio de Sousa, of Rio de Janeiro, Brazil. Mrs. Donnelley,
a former newswoman, is an interpreter who has served at many major
international conferences,JM_«IBMMP*"*7 *"***• giasBtppiiiiftiifiPiiign
iw_iiiip_%ed'^^
__
The Donnelleys have a daughter, Leigh Patricia, 16, who
attends the Marymount School in Arlington, Virginia. They mm
Lj^^.
w
at 3721 25th Street, N., Arlington.
myijjjJ|^H3>"Vjt»w«BF_mii
iw»i»t—>III'W'I.IIIII 11 ^ ^ * M — ~ » ^ — ' . w qgiiMMi i » — — • p a w ~ ~ ~ ~ * - '
oOo
—™—
—
RELEASE MORNING NEWSPAPERS,
Friday, March 3, 1961.
D-31
Secretary of the Treasury Douglas Dillon today announced the
appointment of Dixon Donnelley, former Washington newsman and foreign
news magazine editor, as Assistant to the Secretary for Public
Affairs. Mr. Donnelley served as Assistant to Mr. Dillon when he was
Under Secretary of State.
Born in New York City on July 29, 1915, Mr. Donnelley attended
Columbia University. He began news work on the New York Daily Newsj/^6
l jtn 19374-B^rwenT"to Cuba/as City Editor of The_Havana Post^
He returned to the United States in 1940 and became Assistant
City Editor of The Washington Daily News, joining Nelson Rockefeller1!
Office of the Coordinator of Inter-American Affairs as News Editor a
year later. From 1942-45, he was an Intelligence Mts4NplB_-~ssiiitab-e_i
Officer with the U.S. Army Air Force. At war's end, he became
Assistant City Editor of The Washington Post.
Mr. Donnelley joined the Foreign Service in 194-6 and served as
Press Attache to U.S. Embassies in Mexico, Chile, and Argentina. In
1950, he resigned to become Editor and Publisher of "Visao," an
American-owned news magazine published in Brazil.
In 1955, Mr. Donnelley became Editorial Director of the Senate
Sub-committee on Juvenile Delinquency. He then served on the
Stevenson-Kefauver campaign staff in 1956 as Senator Estes Kefauver's
Public Relations Director.
»Prior to rejoining the State Department in 1958, Mr. Donnelley
was a Consultant to the President's Committee on Scientists and
.Engineers. TWnaLxa^jit state, he was a mef-bel? of the U.S. Delegations
to -che inaugural lfeeT_ti_--Qfthe TnfrrftmrrlrinTV^vrlg^mniil- TVIIMT at
San Salvador in February 19697* tlaeMeeyjag--o_^Se Committee of 21 at
Bogota, Colombia, in Septembera-JL9S^,^S5^5 launched the new U.S.
program of social d^vgjjo^wnelnt for Latin Am^r_^La; and the meeting
establishingtlad--ffSwOrganization for EconomicCt^^eration and
Develorjim£»fc*"
at Paris, and
in December
i960.
Author of£OECD)
"Establishing
Operating
A Small Newspaper,"
Mr. Donnelley has, ^.on1>*_fcBBtoo4"'nirHialas Bin imMwmi-l''
the National Press Club & Washington and the Overseas Press Club
New York.
*
J
J
$£c# VG$ 7
V
RELEASE MORNING NEWSPAPERS,
Friday, March 3, 1961.
D-31
Secretary of the Treasury Douglas Dillon today announced the
appointment of Dixon Donnelley, former Washington newsman and foreign
news magazine editor, as Assistant to the Secretary for Public
Affairs. Mr. Donnelley served as Assistant to Mr. Dillon when he was
Under Secretary of State.
Born in New York City on July 29, 1915, Mr. Donnelley attended
Columbia University. He began news work on the New York Daily News,
and went to Cuba in 1937 as City Editor of The Havana Post.
He returned to the United States in 1940 and became Assistant
City Editor of The Washington Daily News, joining Nelson Rockefeller'f?
Office of the Coordinator of Inter-American Affairs as News Editor a
year later. From 1942-45, he was an Intelligence Officer with the
U.S. Army Air Force. At war's end, he became Assistant City Editor
of The Washington Post.
Mr. Donnelley joined the Foreign Service in 1946 and served as
Press Attache to U.S. Embassies in Mexico, Chile, and Argentina. In
1950, he resigned to become Editor and Publisher of "Visao," an
American-owned news magazine published in Brazil.
In 1955, Mr. Donnelley became Editorial Director of the Senate
Sub-committee on Juvenile Delinquency. He then served on the
Stevenson-Kefauver campaign staff in 1956 as Senator Estes Kefauver's
Public Relations Director. Prior to rejoining the State Department
in 1958, Mr. Donnelley was a Consultant to the President's Committee
on Scientists and Engineers.
Author of "Establishing and Operating A Small Newspaper,"
Mr. Donnelley belongs to the National Press Club, Washington, and
the Overseas Press Club, New York.
Mr. Donnelley was married in 1943 to Lucia Tarquinio de Sousa,
of Rio de Janeiro, Brazil. Mrs. Donnelley, a former newswoman, is
an interpreter who has served at many major international conferences.
The Donnelleys have a daughter, Leigh Patricia, 16, who attends the
Marymount School in Arlington, Virginia. They live at 3721 25th
Street, N., Arlington.
0O0
m
Treasury Secretary Douglas Dillon today made a key policy offi^
responsible for ensuring that Treasury ifsagss^B!*** adheres closely to
fair employment practices.
He designated Robert A. Wallace, Special Aswistant to the Secretary
as Employment Policy Officer of the Department. Mr. Wallace will
pfitu&csr |1| frljfefr
work on a continuoing basis to
discrimination within the Department against ans job applicati
or e ployee because of race, color, religion, or national origin.
A
/ Mr. Wallace's designation marks the first time that Msfk a top
Treasury
policy jofficer has beenjgiven this assignment..
Mr. Wallace has called a special conference in Washington at an
-~p _ii Treasury Department Employment Policy Officers in
--- — A M _!_« united States, to
UNITED STATES NET MONETAE! GOLD TRANSACTIONS WITH
FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS'
January 1, i960 - December 31, i960
(in isillions of dollars at 035 per fine'troy ounce)
Negative figures represent net sales by the
.gures, net purchases
United States; posii
Country
Argentina
Austria
Belgium
BIS
Burma '
Cambodia * —
Chile
Colombia
Denmark
Egypt
First
Quarter
I960
-1.1
-26 « 3
Second
Quarter
I960
-2U.5
Iraq
Japan
Mexico
Morocco
Netherlands
Pakistan ---•
Peru
Saudi Arabia
£n:iin
Fourth ; i Calendar
Year
Quarter |
I960
1?60__ I
-30.0 0
-20.0
-7.0
-83.1
-36.0
^3.8
-12.0
-2.0
I -50.0
'
-1.1
j; -mo.9
jj
in
(I!
-6.3
—
-15.0
M
-7*5
Finland
France
Germany
Ghana
Greece
Honduras
Iceland
Indonesia
International Monetary
Fund
Iran
Third
Quarter
I960
-5.0
-2.0
-.2
-22.9
-•8
-2.6
-2k.9
/300.0
|j /300o0
-3.0
-173o0
-33. Q
-5.6
-ItfoO
—•ij.
-•U
___
-—
——
_._—
-1.8
-15.2
-21*. 9
-109.7
-12 • 5
—_—
—
—
—
—
—_
-11.3
-.2
-i£.o
-3*0
•116.7
-33-8
-$.6
-1*2.0
-.8
-2.1;
—-10.0
-12.0
-2.0
-6o3
1 O
-56.3
—
-360O
-3.8
-.2
-32.7
—
-28o0
H
-29=8
-15.2
-20.0 j( -20.0
-21.0
-21.0 ji
-10U.7 !: -2U9.U
is31
-15*0 |i
-15.0
— II -11.3
-80.6 n -113.7
-2.5 i!
"2.5
11
S':;lt^erland
Syria
Tunisia
Turkey
United Kingdom
Uruguay
Vatican City
Yugoslavia
All Other
Total -Ul.7
__—
-159.6
—
—
—
-2.1
-.5
~~~
-,»6
« — .-
___
_——
/l.O
-2.5
-3ok
-350.0
-631.6
Figures may not add to totals because of rounding.
; !
\
-3-8 ,jj
-u.5 ;;:
-12.5 .j:
-.1
-•9
—_ 0 1
• >>
—Q© L
-200.0
-83.5
-I6U06 [\\
— '.i\
-911.6
-6.1
-550oO
-3.8
-6*0
-15.9
-3.?
;-1,668.5
IMMEDIATE RELEASE
FRIDAY, MARCH 3, 196l
D-32
Treasury Secretary Douglas Dillon today made a key policy
official responsible for ensuring that Treasury adheres closely to
fair employment practices.
He designated Robert A. Wallace, Special Assistant to the
Secretary, as Employment Policy Officer of the Department.
Mr. Wallace will work on a continuing basis to prevent discrimination within the Department against any job applicant or employee
because of race, color, religion, or national origin.
Mr. Wallace's designation marks the first time that a top
Treasury policy officer has been given this assignment.
Mr. Wallace has called a special conference in Washington at
an early date of all Treasury Department Employment Policy Officers
in Washington and from field offices all over the United States,
to discuss existing practices under the Employment Policy program
and how they may be further implemented and more effectively applied throughout the entire Treasury organization.
Secretary Dillon told a top level meeting of Treasury officials
that the Wallace appointment is directly in line with the personal
desire of President Kennedy and the firm policy of his administration to fight discrimination on all fronts. Wallace is in daily
contact with the Secretary and will be responsible for periodic
reports to him on the progress of the Treasury's employment policy
group.
0O0
U. S. TREASURY DEPARTMENT
Washington, D. C.
FOR B.EDIATE RELEASE, SATURDAY, MARCH I4, 1961
The action of the Government of the Federal Republic of Germany in
increasing the par value of the Deutsche mark by approximately 5 percent
must be viewed in the context of three separate problems facing the free
world. The first is the basic disequilibrium in the free world balance
of accounts, which has been characterized by a persistent surplus of the
Federal Republic and deficits in some other free world countries, including the United States. The second has arisen from movements of short-term
capital seeking higher interest rates in Germany or speculating on the
possibility of a revaluation of the Deutsche mark. The third is the common
problem facing the economically advanced countries of the free world in
providing foreign assistance in amounts adequate to bring about a significant
increase in the standards of living of the less developed countries.
The action taken by the Federal Republic in increasing the par value
of the Deutsche mark is a useful but modest step toward redressing the first
problem, the basic imbalance in free world accounts. As to the second problem, it should put an end to uncertainty concerning the future level of the
German exchange rate. It is the hope of the United States Government that,
having taken this step, the Federal Republic will now proceed rapidly to
take further steps along other lines which have been tinder discussion.
It is further hoped that the Government of the Federal Republic will
take prompt steps toward helping with a solution of the third problem by
moving forward with a large-scale program of foreign assistance on a continuing budgetary basis.
a&.
wmmjjL±^Bj^imxl^mmi nmM h,m%
O-'i
\i
Tttt frmmrf Dtpwrtatnt ®mmwm&& lust mm&m
that tha ttndtrt for two ssrles «f
frtamiry bill*, oat asrios to b# m additional istmt of the bills dat*t Wmmhme S, #|
ani tli© oitttr string to b# d*tt* ( m l £ * J 3 & » -**«4i «*r* •fftrti <m Patth 1, vere
opansi at tht Ptdwrtl Bttorvs Baakt eft iterd- 6. Ttatar* vtvt Invito for ll»l@@,OO0l0(
or tlwrMbovtt, of filter bills aaA for t$QO,00O,OOO, or thtrtabomt*, of l«t^toy tll]|,
fh* ittails of tlMi t*» acri** aro at follontf
ltt«4igr frasanry bills
liMCrl OF & « P T 1 E )
fl-4*f f M M T bills
CQUfSfltlVC S I M t
,^^i4iiJ^fe^,li,l(^
JSl^il^im,liJi^,,,^
J3ESSL
rllgfe
low
Av^rag*
IT ptrotat of tli®
S3 p#ro«nt of tho
ff.3?i
99.#1
n.m
Annual fttit
muy
tmsiy
of n-tajr bills bid for at th* low prist was accepts
of l8?<4ajr bills fcii for at Urn 1*» priot was Mttptai
fOffit ftMOIlS AfrrtlKD f « A M A C C U m If 9 1 M M I , M S i f W D i m i C T S t
MB*
Tovk
fkll*it&|4ilm
Citwiind
RjUrisntnl
AtUaU
Chl*ago
it. Lottl*
tflnnstpoll*
ftMMMMI City
Ballns
San 7ranti*ao
<mm
X,M?*M0,000
ts»irr,ooo
3^,?3#,CW
ff3ftT,000
8M&5tO0Q
ftt0,f§?,0®0
*fe,3t*,000
X5»*tt»ooo
Ii3,iit,»0
XT,*» f 000
it,ooi,to,ooo
, ^*&am
FiSTtrnm
Accsptsd
*T*#10ftOOO
T0)*3*t,<*Q
XMtt,tf»
JMfMoo
15**06,000
?,1T3,000
5,100,000
»,3§T,OQO
5?,sn,©o@
4,05>O,OQ0
5f!t6xf0Q0
XX,33MQO
,,L?6,000
11,201,56^,000
to»ti5sOoo
151,161,000
ftft9Mif000
13f6§li»000
33,3tX»000
txtxoo9ojf,oop y
XT,lttf000
t fmm
3Ti,6i6,W
1,603,000
10,6142,000
1,623,00©
3,972,000
3,23§,000
f,S6l,®©0
f9m,m
h,tfS,Mt
1500,260,06© |
a/ Xaelndtt $2fO £ 3Ui f OQp
at tht avtragt prim of W*3_l
; noneoaf*ttti*t ttnitrt mmpfi
5 / Inoludtt tk9,jliQ9Q0Q n»aeo*?*titlv* tomtit atttpttd at tht avtrsft prioo of 9&*m
" 0« a eovpon l&s«# of tht satta laugtfe and for tho sssso amount .inrtsttd, tha rttani t
tfe**t bills vmtii provM* yUMm
of 2.51*1* tm tht n«4tjr blllt, m& 9.7S%$ tor to
lc7-r!6;- bills. Iiifcorost ratos on bills'art quoted to ttnst of bank discouat with
tht r t t v n rolatoi to tht fact ssKmst of the b U l s isayablt at natortty rsthtr Vm
tho mount invostod -nd their Iti^th In actual number of days rtlattd to a 360-4*1
fwmr* Xn ooairast, yitl4t on otrtlfltatos, notts, a j ^ bonis art oospotti la t s m
of iHttrost oa tht sstoast larttttd, i M r t U t t tht tmmh*r of days rtnalttlaf 1» •«
isttrest pt|»t_t porio4 to tht aotual wmbmr of o^ys In tht $s*ri@4l, with
oo»poa«llsg if »orsi than ont ooupou ptrlod It lnvolvti*
I
TREASURY DEPARTMENT
vsu.'isexi3BnF!esnrT<;rr7ji
________s:g^._^^_ry_i7sg~^
WASHINGTON, D.C. N<
RELEASE A. M. NEWSPAPERS, Tuesday, March 7, 1961.
D-33
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 December 8, I960
and the other series to be dated March 9, 196l, which were offered on March 1, were
opened at the Federal Reserve Banks on March 6. Tenders were invited for $1,100,000,000
or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills.
The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
i
91-day Treasury bills
maturing June 8, 1961
ji
Approx. Equiv. i
i
Price
Annual Rate
99.376
99.367
99.372
2.1*69$
2.501$
2.km 1/
i
.
.
182-day Treasury bills
maturing September 7, 1961
Approx. Equiv.
Price
Annual Rate
98.652
98.61*6
98.61*8
2.666$
2.678$
2.67W 1/
77 percent of the amount of 91-day bills bid for at the low price was accepted
53 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
Applied For
}
26,961*,000
l,li.67,1*60,000
25,377,000
39,736,000
9,387,000
2h,6l5,000
21*0,207,000
2l*,32l*,000
l5,68l*,000
1*3,682,000
17,265,000
69,500,000
$2,00li,if01,000
Accepted
§> 12,76U,000
703,356,000
10,377,000
39,056,000
9,387,000
20,815,000
157,865,000
22,821^,000
13,681^,000
33,321,000
17,265,000
59,325,000
Accepted
s1 Applied For
8,ii*2,bbo
'1 $
I 5,iii,oob
979,109,000
378,686,000
!1
.
6,735,000
1,603,000
25,606,000
10,61*2,000
J1
7,173,000
1,623,000
J:
5,100,000
3,972,000
:.
16,350,000
57,571,000
•t
1*, 090,000
3,238,000
i,
J\
5,161,000
2,861,000
{
11,336,000
5,807,000
1*, 1*28,000
1*, 1*28,000
86,813,000
65,629,000
,t
$1,100,039,000 ayf
$1,201,561*,000
$500,280,000 1
\l Includes $220,31*1*,000 noncompetitive tenders accepted at the average price of 99.372
)/ Includes %k9.71*0,000 noncompetitive tenders accepted at the average price of 98,61*8
[/ On a coupon issue of the same length and for the same amount invested, the return on
" . these bills would provide yields of 2.5k%> for the 91-day bills, and 2.75$> 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.
-in.-*
i
>
•
•
_. a —
IMMEDIATE RELEASE,
Monday, March 6, 1961. D-31*
The Treasury Department today made public a report of
monetary gold transactions with foreign governments, central
basks, and international institutions for the calendar year
I960. For the year as a whole, net sales of gold by the
United States amounted to $1,668.5 million.
A table showing quarterly and annual net transactions,
by country, for I960 Is printed on reTerse side.
6VL
UNITED STATES Nr£T MONETARY GOLD TRANSACTIONS WITH
FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS
January 1, I960 - December 31, I960
(in millions of dollars at §35 per fine troy ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases
Country-
First
Quarter
I960
Argentina
Austria
Belgium
BIS
Burma
___
-1.1
-26.3
—
—
Cambodia
Chile
Colombia
Denmark
Egypt
—
—
—
—.
Finland
France
Germany
Ghana
Greece
—
—
—
—
—
Honduras
Iceland
Indonesia
International Monetary
Fund
Iran
Iraq
Japan
Mexico
Morocco
Netherlands
Pakistan
Peru
Saudi Arabia
Spain
Surinam
Total
Third
Quarter
I960
—._«_.
-30.0
-20.0
-2U.5
-7.0
—
—
-83.1
-36.0
-3.8
__ _
—
-6.3
—
—
-12.0
-2.0
—
—
—_—
—
—
—
-7.5
-
___
—
—
—
-56.3
—
—
-5.0
___
—
-2o0
-.8
-2.1*
—
Fourth
Calendar
Quarter !
Year
I960 : !
I960
-50.0
-l.l
-11*0.9
-36.0
-3.8
-12.0
-2.0
-6.3
-15.0
-7-5
-15.0
—
-3.0
-116.7
-33.5
!
-1*2.0
-3.0
-173.0
-33". 8
-5.6
-1*7.0
-.2
-22.9
-.8
-2.6
-2l*.9
-5.6
/300.0 >
-.k
-10.0
-.2
/3O0.0
-.u
—
—
—
-2)4.9
-1.8
-15.2
-109.7
___
—
—
-32.7
—
-11.3
-.2
-2.1
-.5
-28.0
•
-20.0
-21.0
-12.5
Switzerland
Syria
Tunisia
Turkey
United Kingdom
Uruguay
Vatican City
Yugoslavia
All Other
Second
Quarter
I960
-159.6
—
—
—
-200.0
-ioii.7 i
———
-15.0
i
1
' i
-8o.6 :!
-2.5 !
-161*.6
—
—
-6.L
-350.0
-29.8
-15.2
-20.0
-21.0
-21*9.1*
-12.5
-15.0
-11.3
-113.7
-2.5
1
| -32U.2
-2.1
'
-.5
-6.1
.'
; -550.0
-3.8 1
-2.5
-U.5
-3.k
-.6
/1.0
—
-.9
-.1
-12.5
-2.1
-3.8
-6.0
-15.9
-3.7
-U1.7
-83.5
-631.6
-911.6
,-1,668.5
Figures may not add to totals because of rounding.
!
IMMEDIATE RELEASE,
Monday, March 6, 1961.
D-34
The Treasury Department today made public a report of
monetary gold transactions with foreign governments, central
banks, and international institutions for the calendar year
I960. For the year as a whole, net sales of gold by the
United States amounted to $1,668.5 million.
A table showing quarterly and annual net transactions,
by country, for I960 is printed on reverse side.
'
r
-22rather than mere temporary stimulus — to the flourishing
and continuing growth we can and must achieve. We hope
that by carrying out these many-sided programs with resolve
and determination, we can make maximum use of our resources,
both human and material, to create a bribhter future for
all Americans.
-21The tax system should fee flexible and respond to changing
economic conditions. Ia times of falling income, the receipts
under such a tax system should decline, so that resulting
Federal Budget deficits will help to sustain the level of
demand and employment. 2a times of rising income aad employe
the system should furnish increasing revenue and a surplus
should result. An important advantage of the surplus will
be that through debt retirement, it can fee made available to
private investors for capital formation and economic growth.
Wo are looking forward to a strong economy la which such
years of surplus will match or eseeetf those of deficit.
The problems of bringing about a prompt recovery and,
more importantly, vigorous expansion, call for tho stimulating
potential of a larger Government budget within a financially
orderly framework. Wo aim to make Government's contribution
to economic activity ia a way that will provide solid mm®**
rather tW
markets and repay their bank loans, the more the banks will be
able to supply credit to other borrowers, and so stimulate
if eooife^ir •
There is another vital force ia this whole area of interest
the fieid of tax policy.
I shall defer discussion of this subject ia view of tho
rtcomtaendations which the President proposes to submit shortly
oa tax measures that will encourage the expansion and
modernization of the Nation's productive plant so as to
accelerate economic growth and improve the international
competitive position of American industry. It will perhaps
suffice to state the basic goal of our tax policy. It is
simply this: to.develop and maintain a strong tax system
which will meet the revenue requirements of the Government,
contribute to economic stability, and further the objectives
of a dynamic and growing economy.
The tax
1 0 G
in long-term mortgage rates reflecting the increase ia
I
available mortgage funds that is already beginning to manifest
itself.
Second, security offerings of municipalities, state, and
local governments: Ordinarily, as interest rates decline and
funds become increasingly available la a recession period,
such offerings increase. However, in tho current recession,
this pattern lias not been discernible. As late as last mont_,
offerings continued to lag somewhat below a year ago. But as
the credit ease continues, wo- can expect some growth ia
constructive municipal borrowing.
Estimates for March project
y
a considerable increase over the corresponding month last year.
Third, the corporate financing field, where the stock
•,v.v
market seems to be openly inviting additional equity financing
aa iavitatioa we hope wiH.fes iaoyeaeiagly aeeepte«s fey
corporations, fern the more corporations turn to the seouritiW
markets and
107
~i*»
these policies is, of course, to decrease tie supply of long-
term securities and increase the supply of short term aecuritii
Our attempts to try to bring about a greater availability
of credit at lower interest rates la pursuing recovery and
growth are certainly justified by recent developments.- There
has teem a notable lag in certain key areas such as housing
and municipal and corporate investment, tot these are the
very areas which we wish to stimulate. . y
Let me briefly examine these three specific areas:
first, housing: Although la housing the availability oj
credit at lower mortgage rates is only one aspect of the-4*
problem, it is nevertheless an important ©ae.if We are hopeful
that efforts of the Administration to lower mortgage rates fey reducing the Federal Housing Administration rate, placing
more emphasis la the Federal National Mortgage Association
program oa buying rather than selling mortgages, and urging fc«
mortgage leaders to lower their rates — will help to speed «?
a decreas*
Chart
MARKET YIELDS ON U.S. TREASURY SECURITIES
Pattern of Rates by Length of Maturity
i
%
i—i—r
"i—i—i—r
n
i iI
i—i—i—r
T—i—r
i
i—i—r
"i—i—r
.*"•»*<
^- ; —^Jan.6,/960
5.0
I
I
4.5
'Mov. 29,1960
4.0
3.5
3.0
10
15
20
25
30
35
40
Years to Maturity
Chart 2
MARKET YIELDS ON U.S. TREASURY SECURITIES
Pattern of Rates by Length of Maturity
15
20
25
•Years to Maturity
Office of the Secretary of the Trftftwjry
F-625-1
Chart!
^^ 109
again affect confidence in the soundness of our dollar.
This we cannot allow to occur.
Therefore, other means must fee found to promote tower
long term rates —
means that they do not immediately involve
downward pressures on short rates. It was this dilemma that
led the Federal Reserve Boardtoo the conclusion that the "bills
oalvn poilefwliiehhad worked effeetively ia earlier recessions
was ao loager appropriate to the task at hand.
Ia addition,
the Treasury eaa aad should support efforts to lower the long
tern rate by judicious debt management policies, aot forgetting
however, the need for some lengthening of the debt so as to
maintain a reasonable refunding eattern.
Recent developments m this field earn be seen from the
two charts before you which show the market yields oa U. S.
Treasury securities for selected dates.
The first ehart
In 1958, for instance, ninety day bills sold at six-tenths
of oae percent. This tended to lower long term rates aad ia
tura promoted economic recovery. It is important here to
recognize that extremely low short term rates are not of
themselves necessary for recovery. They reflect increased
credit availability aad help stimulate the investment flow
iato the long term sector at lower rates. Today, a reduction
ia loag term interest rates, including mortgage rates, is
Just as necessary as ia previous recessions, but we must
find new tools to achieve it. No longer can extremely low
short term rates fee permitted to result from credit easing
steps taken to achieve our recovery objective. Instead,
moves have been made to stabilize the short term rate around
present levels, aa adequately low rate for business purposes*
There is always the danger that a lower rate may precipitate
a renewed flow of short term capital abroad which could once
agaia
-14*
budgets aad surpluses.
It is now clear that revenues in fiscal 1962 cannot help
feat fee less thaa those projected ia President Eisenhower's
final Budget Message of Jaauary 16.^ Ia tfeat message* corpora
profits for/ealemdar 1M& {*» which, of eeiirs*, fiscal 1962
/
reveaue figures are feasedj were*estimated at ierff-six feiUie
dollars. The facts aow avallafel* isdieate ta*t,this estimate
is too hi^posslfelir fey as mu^,as three feilliea. dollars.
-^
la addltiom* perseaal iaeeme may fall Jsomewaat.Jhut of the
four hundred fifteen billion dollar estimate ia that Message.
cannot piapoist revenues and expenditures more exactly
since final decisions have not yet feeea takea fey tae Preside
However, the Director of the Budget will be able to provide
you with these estimates whea he appears before you later this
mouth.
la past recessions the Federal Reserve has been able to
promote the aeeded lower loag term rates of interest fey
allowing the short term rate to fall almost to aero.
We must make certain that the powerful aad productive lafiueaet
of tae Federal Geverameat is used most effectively. m^..
Our nation's resouroes#-« the capacity of&our people and
the qualityj>f our physical plaat aad materials, — |are impress
But they are not presently being fully utilised aad, tae level
of unemployment is unacceptably high. In initiating new progra
d£ expansion, therefore, we can call upon unused reeouroes,^
upon credit ease.aad fiscal expansion - aad.even upon a
,•
reasonable budget .deficit f## a limited period of time — ^
without running the risk of inflation.
ahm
^\ tmt Ee>-^
There are, of course, inescapable physical limits cm the
speed with which our untapped reserves caa fee put to use.i^t,
Nevertheless, the curren trecession makes a modest aad tempera*
deficit not only inevitable, but actually desirable as a %idh
stimulant to recovery aad the resumption of economic growth.
Hie fact is that a budget deficit may,prove helpful ia a period
of widespread unemployment such as the present one. During
periods of prosperity, of course, we should retura to fealaaeed
distribute the benefits of that Increased productivity between
workers, investors aad coasumer®, without sacrificing our
lateraatioaal competitive positioa. The^President has just
provided a channel for funnelling many of these considerations
aad bringing them to bear on key problems through the President'
Advisory Committee oa Irabor-Management Policy.
How to return to the problems of our economy here at host.
We must try to produce aa environment that will not only bring
us out of our preseat recession, but will also permit our
economy to grow at a faster rate than has been the case la
recent years.
The role of the Federal Government as aa energising force
ia the growth of our economy and as a stabilizing influence
upon its ups aad downs is dally becoming more important. But
there are limits upon what the Government can, or should, do.
It is as important to avoid over-commitment as uader-commitmeat,
as essential to avoid waste as to avoid constrictive economy.
-X3U
H4
responsibilities for a rising flow of capital to the less
developed countries. We hope to facilitate both of these
types of cooperation through the OECD.
It is also esseatial for our people to realise that we
are inevitably subject to iateraatioaal competition. Just
as tills country has always found open competition to fee a
major force ia stimulating growth, expansion, aad technological
change here at home, the same is proving to fee true later*
nationally. This development serves to emphasise our need
to remain strong aad competitive — sad not restrictive or
isolated. Obviously, this has a great many implications for
Americas industry la terms of the price-wage-cost structure.
It becomes important to emphasise to both management and tabor
that profits aad wages aeed not always fee increased to provide
more benefits to investors aad workers. Both of these economic
groups are made up of individual consumers. Hence, the
provision of more goods aad services for the same dollar fey
some lowering of prices with increasing productivity may better
to promote aa increased stream of tourists to the United States.
We are recommending a redactioa in tourist allowances. We are
developing procedures to encourage foreign monetary authorities
to hold dollars. And we are reexamining the tax status of Ameri<
*t~~S*~* m<U&
investment abroad to determine whether thap mvv paying t&gfcr fail
share of our national tax aad whether or not may deficiency of
our tax system ia this regard has contributed substantially te
aa imbalance of payments. We will continue to explore ways
aad meaas of assuring that the substantial payment imbalances
of recent years are not continued so as to impair our national
economic position.
But improvement ia oar basic deficit also meaas- that
the chronic surplus la tae balance of payments of certain other
advanced countries needs to fee simultaneously reduced. This
calls for Improved international cooperation across the broad
spectrum of economic policies* International cooperation is
also increasingly needed ia approaching what are now mutual
respoaslfeilitles W
.9-
21$
We hope to pursue this cooperation through the proposed new
Organization for Economic Cooperation and Development (OECD),
through the International Monetary Fuad, aad ia other appropriate ways. At longer range, we are instituting a thorough%*j
exploration of measures to improve the functioning of the
International Monetary Fund aad to strengthen its capabilities,
ia order to assure adequate and flexible liquidity for the
growth that lies ahead*
X have said that we must utilise tae time given us fey
the restoration of confidence to attack tae problem of our
basic deficit, which last year amounted to about $1.5 billion.
Ia dealing with this basic deficit, we are actively pursuing
the specific lines of policy laid dowa fey the President.
For example, we expect to tie our military procurement aad
economic aid expenditures even more closely to United States
sources of supply. We axe preparing to improve our facilities
for providing credit to our exporters. We are moving feigorously
achievement of reasonable equilibrium ia our balance of
payments will not fee a simple task. It will involve
vigorous aad many-sided actloa fey our government, the
cooperation of other free countries, aad active aad enlightened
support by our own people. I am increasingly hopeful that If
we utilize these elements, properly welded togetherjWe can
reach our goal within the aest two years.
Oae inescapable conclusion which emerged from the short
term capital movements of 1960 is the need for more effective
international cooperation in economic aad monetary policy ia
order to minimize the disruptive effects, aad the magnitude
/
of such movements. To be sure there will always fee differences
amoag countries la the tlmiag of booms aad recessions, aad
there will always fee some need for a short term capital flow.
But if fuller exchanges of views aad experience amoag the
financial officials of leading countries can ia aay way reduce
the impact of these swings, we must seek such exchanges.
We hope
118
a broad aad comprehensive approach to achieving aa over-all
equilibrium in our international payments, placing heavy
emphasis oa expanding our exports. He rejected protectionism
as ineffective aad undesirable and stressed that kelp for the
less developed countries from all the economically advanced
countries must fee enlarged.
I am pleased to report that reaction abroad to the
President's vigorous aad determined approach has been very
favorable. The dollar once again is strong. There has been
a decided slackening la the outflow of gold aad dollars aad
there are signs that some of the speculative funds taat left
our shores last fall are beginning to return.
This is not, of course, a siga that the problem is over,
but only taat the world believes that we mean what we say.
It is imperative, therefore, that we press oa with more
fundamental measures for correcting our basic balance of
payments deficit, utilising the breathing spell provided by
this free world vote of confidence. It is clear that
119
to differentials ia interest rates, as well as to speculative
considerations. When recession here coincided with boom abroad
from mid I960 onward, monetary policies and Interest rates ia
the United States aad Europe diverged widely. At oae time last
fall a short term investor could obtain as much as two percent
more on his money in London than in Hew York. Hence, a broad
stream of short term capital moved from New York to London
and other European money centers in search of these higher
short term rates. The sise of this flow shook confidence in
our ability to maintain the value of the dollar. Speculation
began against the dollar and added to the outflow. This
speculative fever continued unabated until late January.
The first task of this Administration was to restore
confidence and put an end to these speculative movements.
The President promptly pledged that the official dollar price
of gold would fee maintained at $35 per ounce. He also outlined
a broad
-ft-
120
this deficit.
In I960 another over-all deficit of $3.3 billion
occurred aad we paid out another $1.7 billion of gold.
me situation in I960 was dominated fey a new element. Our
exports had a very good year. But a very large outflow of
short term capital took place, mainly from June to the end of
the year. Our basic deficit — that is, minus the short term
capital outflow— markedly improved, and was estimated at about
$1-1/2 billion, as against something over $4 fellllea ia 1959.
The outflow of short term capital, amounting to more than two
billion dollars, was the major factor in the large drain of gold
and dollars during the final six months of last year.
How what caused this aew phenomenal- the large scale exodus
of short-term capital?
With convertibility, international money markets have
agaia become closely inter-connected aad liquid funds now
flow freely la large volume between these markets la response
to differentials
121
This aew situation arose two years ago with the return of
convertibility ia Europe.
For the first time since the
thirties all the major currencies of the free world became
freely Interchangeable for current transactions.
This new situation severely aggravated our balance of
payments problem last year and, ia turn, it determined the
nature of some of our responses to recession here at home.
To begin with, I should like to review briefly the
significant developments la our balance of payments ia
reseat years.
Between 1951 and 1SS7 foreign countries utilised the
proceeds of their surpluses, averaging roughly oae billion
dollars a year, to build up needed reserves of dollars. The
situation hasfeeeaquite different slaee 1957.
in 1958 and
1953, our exports fell off sharply aad our imports rose.
Our deficit rose to $1--1/2 billion aad more a year aad we had
to pay out some $3 billion la gold to cover a large part of
this deficit.
122
It seems important that we search for and employ those economic pol
which are best designed to achieve a maximum of all of these deslia
objectives, without unduly sacrificing one at the expense of another
In moving now, in the year 1961, towards these long-range national
economic objectives, we must recognise the urgency of the two major
problems immediately confronting us:
First, the problem of bringing afeout a prompt recovery from the
present recession aad, even more important, a continuing, vigorous
expansion in our domestic economy.
Second, curing the long standing imbalance ia our international
paymeats, aad working ia concert with other iadustralised aatioas to
a more permanent equiliferium.
The simultaneous occurrence of recession and acute balance of pay-
meats difficulties posed new and complex problems for the United St
last year. The sensitive iater-relatioaship between our domestic
economy and our balance of payments situation can fee expected to r
with us ia the future. For today we face an international economic
situation quite different from anything we have seen for over thirt
This new
-2~
123
During the intervening years, marked at various times fey
unanticipated price rises, attention shifted to the problem
of iafiatioa and reasonable price stability emerged as a
second national economic objective.
More recently, a third national objective has received
increasing emphasis — to develop economic policies directed
at stimulating maximum sustainable rates of growth withia our
own country aad withia the economies of our friends and allies.
In pursuing these aatioaal economic objectives it is
important to keep ia mind other aatioaal objectives such as
national security, a desirable degree of economic freedom, a
maintenance of a market mechanism unimpaired fey the absence
of workable competition, the provision of adequate government
services in areas where private action will not suffice, aad
some equitable distribution of income aad opportunity.
It is oaly realistic to recognize that some courses of
policy aad actioa can serve to promote the achievement of
certain of our goals at the sacrifice of others.
It. seems
±?4
STATEMENT OF TEE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY, BEFORE THE
JOINT ECONOMIC COMMITTEE,
TUESDAY, MARCH 7, 1961, 10:00 A.M.
Mr. Qiairman, X am pleased to meet with this distinguished
Committee. It is Important that we discuss the broad outlines
of our economic situation and the economic programs the Govern-
ment should follow in pursuit of our central national objective.
This objective, simply stated, is to preserve and develop
the security, freedom and prosperity of the United States within
a strong free world. Our economic policies, both domestic and
foreign, can fee used effectively to serve our central objective
if they are directed particularly at three specific economic
objectIves which have been a subject of particular concern to
this Committee during the past year.
The first national economic objective is that stated in
the Employment Act of 1946, namely, the maintenance of a high
level of employment or, in the words of the Act, "maximum
employment.ff
^^ During the
V
"-}
HOLD FOR RELEASE ON DELIVERY
TREASURY DEPARTMENT
Washington
STATEMENT OP THE HONORABLE DOUGLAS DILLON
SECRETARY OP THE TREASURY, BEFORE THE
JOINT ECONOMIC COMMITTEE,
TUESDAY, MARCH 7, 19^1, 10:00 A.M.
Mr. Chairman, I am pleased to meet with this distinguished
Committee. It is important that we discuss the broad outlines of
our economic situation and the economic programs the Government
should follow in pursuit of our central national objective.
This objective, simply stated, is to preserve and develop the
security, freedom and prosperity of the United States within a
strong free world. Our economic policies, both domestic and foreign,
can be used effectively to serve our central objective if they are
directed particularly at three specific economic objectives which
have been a subject of particular concern to this Committee during
the past year.
The first national economic objective is that stated in the
Employment Act of 19^6, namely, the maintenance of a high level of
employment or, in the words of the Act, "maximum employment."
During the Intervening years, marked at various times by
unanticipated price rises, attention shifted to the problem of
inflation and reasonable price stability emerged as a second national
economic objective.
More recently, a third national objective has received increasing
emphasis — to develop economic policies directed at stimulating
maximum sustainable rates of growth within our own country and
within the economies of our friends and allies.
In pursuing these national economic objectives it is important
to keep in mind other national objectives such as national security,
a desirable degree of economic freedom, a maintenance of a market
mechanism unimpaired by the absence of workable competition, the
provision of adequate government services in areas where private
action will not suffice, and some equitable distribution of income
and opportunity.
It is only realistic to recognize that some courses of policy
and action can serve to promote the achievement of certain of our
goals at the sacrifice of others. It seems important that we
search for and employ those economic policies which are best designed
to achieve a maximum of all of these desirable objectives, without
unduly sacrificing one at the expense of another.
D-35
± / f"v
«*. £_ '^j
- 2 In moving now, in the year 196l, towards these long-range
national economic objectives, we must recognize the urgency of the
two major problems immediately confronting us:
First, the problem of bringing about a prompt recovery from the
present recession and, even more important, a continuing, vigorous
expansion in our domestic economy.
Second, curing the long standing imbalance in our international
payments, and working in concert with other industralized nations
toward a more permanent equilibrium.
The simultaneous occurrence of recession and acute balance of
payments difficulties posed new and complex problems for the
United States last year. The sensitive inter-relationship between
our domestic economy and our balance of payments situation can be
expected to remain with us in the future. For today we face an
international economic situation quite different from anything we
have seen for over thirty years. This new situation arose two years
ago with the return of convertibility in Europe. For the first time
since the thirties all the major currencies of the free world
became freely interchangeable for current transactions.
This new situation severely aggravated our balance of payments
problem last year and, in turn, it determined the nature of some of
our responses to recession here at home.
To begin with, I should like to review briefly the significant
developments in our balance of payments in recent years.
Between 1951 and 1957 foreign countries utilized the proceeds
of their surpluses, averaging roughly one billion dollars a year, to
build up needed reserves of dollars. The situation has been quite
different since 1957. In 1958 and 1959> our exports fell off sharply
and our imports rose. Our deficit rose to $3-l/2 billion and more
a year and we had to pay out some $3 billion in gold to cover a
large part of this deficit. In i960 another over-all deficit of
$3.8 billion occurred and we paid out another $1.7 billion of gold.
The situation in i960 was dominated by a new element. Our
exports had a very good year. But a very large outflow of short
term capital took place, mainly from June to the end of the year.
Our basic deficit — that is, minus the short term capital outflow —
markedly improved, and was estimated at about $1-1/2 billion, as
against something over $4 billion in 1959. The outflow of short
term capital, amounting to more than two billion dollars, was the
major factor in the large drain of gold and dollars during the final
six months of last year.
-4 O ~f
- 3 Now what caused this new phenomenon— the large scale exodus
of short term capital?
With convertibility, international money markets have again
become closely inter-connected and liquid funds now flow freely
in large volume between these markets in response to differentials
in interest rates, as well as to speculative considerations. When
recession here coincided with boom abroad from mid-1960 onward,
monetary policies and interest rates in the United States and
Europe diverged widely. At one time last fall a short term investor
could obtain as much as two percent more on his money in London than
in New York. Hence, a broad stream of short term capital moved from
New York to London and other European money centers in search of
these higher short term rates. The size of this flow shook confidence in our ability to maintain the value of the dollar.
Speculation began against the dollar and added to the outflow. This
speculative fever continued unabated until late January.
The first task of this Administration was to restore confidence
and put an end to these speculative movements. The President
promptly pledged that the official dollar price of gold would be
maintained at $35 per ounce. He also outlined a broad and
comprehensive approach to achieving an over-all equilibrium in our
international payments, placing heavy emphasis on expanding our
exports. He rejected protectionism as ineffective and undesirable
and stressed that help for the less developed countries from all the
economically advanced countries must be enlarged.
I am pleased to report that reaction abroad to the President's
vigorous and determined approach has been very favorable. The
dollar once again is strong. There has been a decided slackening
in the outflow of gold and dollars and there are signs that some of
the speculative funds that left our shores last fall are beginning
to return.
This is not, of course, a sign that the problem is over, but
only that the world believes that we mean what we say. It is
imperative, therefore, that we press on with more fundamental
measures for correcting our basic balance of payments deficit,
utilizing the breathing spell provided by this free world vote of
confidence. It is clear that achievement of reasonable equilibrium
in our balance of payments will not be a simple task. It will
involve vigorous and many-sided action by our government, the
cooperation of other free countries, and active and enlightened
support by our own people. I am increasingly hopeful that if we
utilize these elements, properly welded together, we can reach our
•goal within the next two years.
One inescapable conclusion which emerged from the short term
capital movements of i960 is the need for more effective international cooperation in economic and monetary policy in order
- 4-
128
to minimize the disruptive effects, and the magnitude of such
movements. To be sure there will always be differences among
countries in the timing of booms and recessions, and there will
always be some need for a short term capital flow. But if fuller
exchanges of views and experience among the financial officials of
leading countries can in any way reduce the impact of these swings,
we must seek such exchanges. We hope to pursue this cooperation
through the proposed new Organization for Economic Cooperation and
Development (OECD), through the International Monetary Fund, and in
other appropriate ways. At longer range, we are instituting a
thorough exploration of measures to improve the functioning of the
International Monetary Fund and to strengthen its capabilities, in
order to assure adequate and flexible liquidity for the growth that
lies ahead.
I have said that we must utilize the time given us by the
restoration of confidence to attack the problem of our basic deficit,
which last year amounted to about $1.5 billion. In dealing with this
basic deficit, we are actively pursuing the specific lines of policy
laid down by the President. For example, we expect to tie our
military procurement and economic aid expenditures even more closely
to United States sources of supply. We are preparing to improve
our facilities for providing credit to our exporters. We are moving
vigorously to promote an increased stream of tourists to the
United States. We are recommending a reduction in tourist allowances.
We are developing procedures to encourage foreign monetary
authorities to hold dollars. And we are reexamining the tax status
of American investment abroad to determine whether It is paying Its
fair share of our national tax and whether or not any deficiency of
our tax system in this regard has contributed substantially to an
imbalance of payments. We will continue to explore ways and means
of assuring that the substantial payment imbalances of recent years
are not continued so as to impair our national economic position.
But improvement in our basic deficit also means that the chronic
surplus in the balance of payments of certain other advanced
countries needs to be simultaneously reduced. This calls for
improved international cooperation across the broad spectrum of
economic policies. International cooperation is also increasingly
needed in approaching what are now mutual responsibilities for a
rising flow of capital to the less developed countries. We hope to
facilitate both of these types of cooperation through the OECD.
It is also essential for our people to realize that we are
inevitably subject to international competition. Just as this
country has always found open competition to be a major force In
•stimulating growth, expansion, and technological change here at
home, the same Is proving to be true Internationally. This
development
competitive
a
great manyserves
—implications
and to
notemphasize
restrictive
for American
ouror
need
isolated.
industry
to remain
in
Obviously,
strong
terms of
andthis
the has
J L « _ <-
- 5price-wage-cost structure. It becomes important to emphasize to
both management and labor that profits and wages need not always be
increased to provide more benefits to investors and workers. Both
of these economic groups are made up of individual consumers.
Hence, the provision of more goods and services for the same dollar
by some lowering of prices with Increasing productivity may better
distribute the benefits of that increased productivity between
workers, investors, and consumers, without sacrificing our
international competitive position. The President has just provided
a channel for funnelling many of these considerations and bringing
them to bear on key problems through the President's Advisory
Committee on Labor-Management Policy.
Now to return to the problems of our economy here at home. We
must try to produce an environment that will not only bring us out
of our present recession, but will also permit our economy to grow
at a faster rate than has been the case in recent years.
The role of the Federal Government as an energizing force in
the growth of our economy and as a stabilizing Influence upon its
ups and downs is daily becoming more important. But there are
limits upon what the Government can, or should, do. It is as
important to avoid over-commitment as under-commitment, as essential
to avoid waste as to avoid constrictive economy. We must make
certain that the powerful and productive influence of the Federal
Government is used most effectively.
Our nation's resources — the capacity of our people and the
quality of our physical plant and materials -- are Impressive.
But they are not presently being fully utilized and the level of
unemployment is unacceptably high. In initiating new programs of
expansion, therefore, we can call upon unused resources, upon credit
ease and fiscal expansion — and even upon a reasonable budget
deficit for a limited period of time — without running the risk of
inflation.
There are, of course, inescapable physical limits on the speed
with which our untapped reserves can be put to use. Nevertheless,
the current recession makes a modest and temporary deficit not only
inevitable, but actually desirable as a stimulant to recovery and the
resumption of economic growth. The fact is that a budget deficit
may prove helpful in a period of widespread unemployment such as the
present one. During periods of prosperity, of course, we should
return to balanced budgets and surpluses.
It is now clear that revenues in fiscal 1962 cannot help but be
less than those projected in President Eisenhower's final Budget
Message of January 16. In that message, corporate profits for
- 6calendar 1961 (on which, of course, fiscal 1962 revenue figures are
based) were estimated at forty-six billion dollars. The facts now
available indicate that this estimate is too high, possibly by as
much as three billion dollars. In addition, personal income may fall
somewhat short of the four hundred fifteen billion dollar estimate
in that Message.
I cannot pinpoint revenues and expenditures more exactly since
final decisions have not yet been taken by the President. However,
the Director of the Budget will be able to provide you with these
estimates when he appears before you later this month.
In past recessions the Federal Reserve has been able to promote
the needed lower long term rates of interest by allowing the short
term rate to fall almost to zero. In 1958, for instance, ninety day
bills sold at six-tenths of one percent. This tended to lower long
term rates and in turn promoted economic recovery. It is important
here to recognize that extremely low short term rates are not of
themselves necessary for recovery. They reflect increased credit
availability and help stimulate the investment flow into the long
term sector at lower rates. Today, a reduction in long term interest
rates, including mortgage rates, is just as necessary as in previous
recessions, but we must find new tools to achieve it. No longer can
extremely low short term rates be permitted to result from credit
easing steps taken to achieve our recovery objective. Instead,
moves have been made to stabilize the short term rate around present
levels, an adequately low rate for business purposes. There is
always the danger that a lower rate may precipitate a renewed flow
of short term capital abroad which could once again affect confidence
in the soundness of our dollar. This we cannot allow to occur.
Therefore, other means must be found to promote lower long
term rates — means that they do not immediately involve downward pressures on short rates. It was this dilemma that led
the Federal Reserve Board to the conclusion that the "bills only"
policy which had worked effectively in earlier recessions was
no longer appropriate to the task at hand. In addition, the
Treasury can and should support efforts to lower the long term
rate by judicious debt management policies, not forgetting, however,
the need for some lengthening of the debt so as to maintain a
reasonable refunding pattern.
Recent developments in this field can be seen from the two
charts before you which show the market yields on U. S. Treasury
securities for selected dates.
- 7-
Chart
MARKET YIELDS ON U.S. TREASURY SECURITIES
Pattern of Rates by Length of Maturity
15
20
25
Years to Maturity
Offir.e of the Secretary of the Treasury
The first chart shows that the high point last year was reached
in January, and the low point the following July. It also clearly
shows that long-term rates actually moved up as the recession
deepened toward the end of last year — indicative of a lag in the
availability of credit to borrowers.
1 Q'l
_• w
_,
-8
Chart 2
MARKET YIELDS ON U.S. TREASURY SECURITIES
Pattern of Rates by Length of Maturity
Office of the Secretary of the IreaAury
The second chart shows that a decline in rates has occurred
since Inaugural Day and that a further decline followed the
President's economic Message, in which he specifically called for
maintaining short rates at current levels and a greater availability
of long-term credit at declining rates. This decline in long term
rates, coupled with the maintenance of short term rates was helped
when the Federal Reserve last month began buying government notes
and bonds of varying maturities, some beyond five years, for
virtually the first time in a decade, and the Treasury concentrated
its sales of securities in the short-term sector. The effect of
these policies is, of course, to decrease the supply of long-term
securities and increase the supply of short term securities.
- 9Our attempts to try to bring about a greater availability of
credit at lower interest rates in pursuing recovery and growth are
certainly justified by recent developments. There has been a
notable lag in certain key areas such as housing and municipal
and corporate investment. Yet these are the very areas which we
wish to stimulate.
Let me briefly examine these three specific areas:
First, housing: Although in housing the availability of credit
at lower mortgage rates is only one aspect of the problem, it is
nevertheless an important one. We are hopeful that efforts of
the Administration to lower mortgage rates — by reducing the
Federal Housing Administration rate, placing more emphasis in the
Federal National Mortgage Association program on buying rather than
selling mortgages, and urging key mortgage lenders to lower their
rates — will help to speed up a decrease in long-term mortgage
rates reflecting the increase in available mortgage funds that is
already beginning to manifest itself.
Second, security offerings of municipalities, state, and local
governments: Ordinarily, as interest rates decline and funds
become Increasingly available in a recession period, such offerings
increase. However, In the current recession, this pattern has not
been discernible. As late as last month, offerings continued to lag
somewhat below a year ago. But as the credit ease continues, we can
expect some growth In constructive municipal borrowing. Estimates
for March project a considerable increase over the corresponding
month last year.
Third, the corporate financing field, where the stock market
seems to be openly inviting additional equity financing — an
invitation we hope will be Increasingly accepted by corporations.
For the more corporations turn to the securities markets and repay
their bank loans, the more the banks will be able to supply credit
to other borrowers, and so stimulate recovery.
There Is another vital force in this whole area of interest
rates and the availability of funds generally, and that is in the
field of tax policy.
I shall defer discussion of this subject in view of the
recommendations which the President proposes to submit shortly on
tax measures that will encourage the expansion and modernization of
the Nation's productive plant so as to accelerate economic growth
and improve the international competitive position of American
industry. It will perhaps suffice to state the basic goal of our
tax policy. It Is simply this: to develop and maintain a strong
tax system which will meet the revenue requirements of the Government,
contribute to economic stability, and further the objectives of a
dynamic and growing economy.
- 10 The tax system should be flexible and respond to changing
economic conditions. In times of falling income, the receipts under
such a tax system should decline, so that resulting Federal Budget
deficits will help to sustain the level of demand and employment.
In times of rising income and employment, the system should furnish
increasing revenue and a surplus should result. An important
advantage of the surplus will be that through debt retirement, it
can be made available to private investors for capital formation
and economic growth. We are looking forward to a strong economy
in which such years of surplus will match or exceed those of
deficit.
The problems of bringing about a prompt recovery and, more
importantly, vigorous expansion, call for the stimulating potential
of a larger Government budget within a financially orderly framework.
We aim to make Government's contribution to economic activity in a
way that will provide solid support — rather than more temporary
stimulus — to the flourishing and continuing growth we can and
must achieve. We hope that by carrying out these many-sided programs
with resolve and determination, we can make maximum use of our
resources, both human and material, to create a brighter future
for all Americans.
0O0
•A, *+J \^
~ 3 -
38mx&xM<mm-
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are subj
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inte
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whi
Treasury bills are originally sold by the United States is considered to be in
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a
of discount at which bills issued hereunder are sold is not considered to accr
until such bills are sold, redeemed or otherwise disposed of, and such bills a
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in h
income tax return only the difference between the price paid for such bills, w
on original issue or on subsequent purchase, and the amount actually received
upon sale or redemption at maturity during the taxable year for which the retu
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies o
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 -
.< ,-r:
1 w -:
__S^MMM1_IIK
decimals, e. g., 99.925. Fractions may not be used,
it is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incor
rated banks and trust companies and from responsible and recognized dealers in
ment securities. Tenders from others must be accompanied by payment of 2 percen
the face amount of Treasury bills applied for, unless the tenders are accompani
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by t
Treasury Department of the amount and price range of accepted bids. Those submi
ting tenders will be advised of the acceptance or rejection thereof. The Secret
of the Treasury expressly reserves the right to accept or reject any or all ten
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $200,000 or less for the additio
5_a§r~
bills dated December lf>> I960
p_3E
f
(
91
days remaining until maturity date on
„?_8c)
June 1$. 196l
) and noncompetitive tenders for $100,000 or less for the
$_9$:
?_&)
182 -day bills without stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive bids for the r
tive issues. Settlement for accepted tenders in accordance with the bids must b
made or completed at the Federal Reserve Bank on March 16 196l , in cash or
other immediately available funds or in a like face amount of Treasury bills ma
ing March 16, 1961 cash and exchange tenders will receive equal treatment.
p_3E
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 asv csseiasstiQiu as such, and
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4:00 P.M., EST, ^K^/ ' «^-A->
Wednesday, March 8, 1961
.
s~\
^^
p$
The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts;
5_3fc
cash and in exchange for Treasury bills maturing
of
March 16. 196l
, la the amount
$1^98,517,000 , as follows:
91 -day bills (to maturity date) to be issued March 16, 196l
,
in the amount of $1,100,000,000 , or thereabouts, representing an additional amount of bills dated December 1$, I960 ,
___£
and to mature June 15, 1961 , originally issued in the
amount of $ 501,318,000
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $ £00,000,000 , or thereabouts, to be dated
March 16, 1961 , and to mature September lU, 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
will be payable without interest. They will be issued in bearer form only, and
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (ma
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closin
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, March 13, 1961
Tenders will not be received at the Treasury Department, Washington. Each tende
must be for an even multiple of $1,000, and in the case of competitive tenders
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, March o, 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 March 16, 1961, in the amount of
$1,598,517*000, as follows:
91-day bills (to maturity date) to be issued March 16, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated December 15, i960,and to
mature June 15, 196l,
originally issued in the amount of
$501,318,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, 0r thereabouts, to be dated
March 16, 1961, and to mature September 14, 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, March 13, 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.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
December 15, 196JQ ( 91 days remaining until maturity date on
June 15, 196l)
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 March 16, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing March 16, 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^. 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 ^5^ (b) and 1221 (5) of the Internal
Revenue Code of 195^ the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or 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.
DRAFT
?
D-~^
IMMEDIATE RELEASE,
The Treasury Department^ade public the following letter from
Secretary Dillon to Clarence E. Hunter, who resigned effective
February 15th>as U. S. Treasury Representative at the U. S. Mission
to NATO and other European Regional Organizations, in Paris, France:
February ±57—±96_Dear Clarence:
A
^
VAJ
Aft/
I ,_Bt^r_^ra_'-*^_i3^
to express -%<r
y«wa the deep appreciation of the TreasOTaLJiLE^cmr M b>pjL&«/**
seven and a half years of dedicated service as
-YKIW 1 ntM]
Treasury Representative and Financial Advisor to the
U. S. Permanent Representative to the North Atlantic
Council and to the OEEC.
^-Through-•p&B%r Qon%ac%_-iif%yi Secretary Anderson and
others here at the Treasuryjik have lung begn"TOHBg±otts ~ J £ *
of the very high regard which they have always had for
you personally and for your fine work in Paris.
Withthe completion of your Treasury service, I
Ha_d_J_aJS^-*3P^wn-'4&^^
health and happiness
in the years aheacX-fce- those whleh—_~4moirirTO^
_4*±fendsH*»»»3&ea&ux^^
4-he^^(MmmMnt -all--*
O a^A. fax*., Mtt+JSt*-* Sincerely
/s/ Douglas Dillon
Douglas Dillon
Mr. Clarence E. Hunter
U. S. Treasury Representative
U. S. Mission to NATO and European
Regional Organizations
Place du Marechal de Lattre de Tassigny
Paris 16, France
% ex '
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, March 8, 1961.
D-37
The Treasury Department today made public the following letter
from Secretary Dillon to Clarence E. Hunter, who resigned, effective
February 15th, as U. S. Treasury Representative at the U. S. Mission
to NATO and other European Regional Organizations, in Paris, France:
Dear Clarence:
I want to express the deep appreciation of the
Department for your seven and a half years of dedicated
service as Treasury Representative and Financial Advisor
to the U. S. Permanent Representative to the North
Atlantic Council and to the OEEC.
Former Secretary Anderson and others here at the
Treasury have told me of the very high regard which
they have always had for you personally and for your
fine work in Paris.
With the completion of your Treasury service, I
want to wish you and Mrs. Hunter health and happiness
in the years ahead.
Sincerely,
/s/ Douglas Dillon
Douglas Dillon
Mr. Clarence E. Hunter
U. S. Treasury Representative
U. S. Mission to NATO and European
Regional Organizations
Place du Marechal de Lattre de Tassigny
Paris 16, France
imiMm
a. M . MMSBsPSBS. fueed&y, jfrrch Hi, 1961,
f
The Treasury Department announced last evening that the tender* for t¥0 series tf
treasury bills, one series to be an additional issue of tho bills dated December 15.
I960, and the other series to be dated Hareh 16, 1961, which were offered oa ffareh 8,
were opened at the Federal Reserve Banks oa m r c h 13* Tenders were Invited for
$1,100,000,000, or thereabouts, of 91-day bills and for #$00,000,000, or thereabout,
of 182-day bills. The details of the two series are as followst
182-day treasury bills
91-day Trmamr? bills
mmm OF ACGI^TU
maturing June 1$, 1961
taring September 14, %m
ommifmm BXM\
Approx. gqaiv.
^
mrA. &mi-.
Prise
Annual
fets
Price
Annual Rets
96.768 a/
High
2.330$
2.437*
99.411
98.738
Low
2.382*
2.49*
99.398
98.759
2.352* y
2.45551/
99.405
a/ Excepting two tenders totaling 11,274,000
3 percent of the amount of 91-day bills bid for at the lew price was accepted
7 percent of the amount of 182-day bills bid for at the low price wag accepted
tmki TE8BSRS
APFLHU FOE Am
mmnm
11 wmmmi msmm uisfRicfSt
Accepted
Applied fer
District
Accepted
Boston
000
000
I 3,309,000
$ 2,13k 000
1,405 999
lew fork
000
665,601,000
393,2U 000
26 301 000
Philadelphia
$98,145 000
1,107,000
3,107 www
000
31
925
Cleveland
9,874 000
12,527,000
12,327 000
000
1? 214
29,866 000
1,743,000
1,743 000
Atlanta
30 226 000
11,LU 000
4,003,000
3,803 000
Chicago
000
202
26,376 000
65,656,000
33,851 000
St. Louis
9$ 62*7000
143,809 000
5,224,000
4,942 000
Minneapolis
000
604
18
22,609
000
it,947,000
3,985
K&nsag City
000
425
1*5
13,997 000
12,358,000
12,358 000
Dallas
78,057 000
17
45,*04 000
5,375,000
4,475
San Francisco
11,100,131
000 y
1500,004,0000/
H,930,835 000
17,375
000
23,888,000
T0SAX3
66,007 accepted1812,738,000
Includes $240,249,000 noncoms- titive tenders
at the average price of 99.40$
Includes 151,007,000 noncompetitive tenders accepted at the average prise of 98.759
On a coupon issue of the same length and for the ease amount Invested, the return oa
these bills weald provide yields of 2.1*0$, for the 91-day bills, and 2.521, fer tt
162-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 tfe"
the amount invested and their length in actual number of days related to a 3&H*J
year. In contrast, yields on certificates, notes, and bonds are computed ia tem
of interest on the amount invested, and relate the number of days remaining ia *B
interest payment period to the actual number of days in the period, with sealeastf
compounding if more than one coupon period is involved.
1 w,m
T
TREASURY DEPART
A. '"figs.. i^_^W__Ui&—JJS&J
WASHINGTON, D.C.
D-36
raTFASB A. M. NEVISPAPSRS, Tuesday^J^rch^ l4, 1961.
The Treasury Department announced last evening that the tenders for tso series o.
The ^ ^ ^ n 7 ^ ™ _ ^ b e a n additional issue of the bills dated December 15,
S T S l ^ other serial S be dated Karch 16, 1961, which were offered on March 8,
19
'nlTned atthe Federal Reserve Banks on March 13. Tenders were invited for
M S K c S S , ^ hereabouts, of 91-day bills ard for $500,000,000, or thereabouts,
of l 8 2 W b i l l s . The details of the two series are as follows*
182-day Treasury bills
91-day Treasury bills
RANGE OF ACCEPTED
maturing September 14, lQ6l_
maturing
June
„5
1961
?
COMPETITIVE BIDS 5
""
Approx. Equiv,
Approx. Equiv.
Price
Annual Rate
Price
Annual Rate
2.4372
98.768 a/
2e33<#
99.411
High
2.4962
98.738
2.3822
99.398
Low
2.4552 1/
98.759
2.3522 1/
99.405
Average
a/ Excepting two tenders £ * ^ » j g ' g g
g perce£ °of £ —
°of ^tZ^^Jfor
low price was accepted
a\ the lo/p-io. was accepted
f o r a t the
TOTAL TENDERS APPLIED FOB AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
Applied For _ Accepted
Accepted
Applied For
District
2,134,000
$3,309,000
¥ 31,340,000 1 157553,000
Boston
393,211,000
665,601,000
698,145,000
1,405,909,000
New York
3,107,000
8,107,000
9,876,000
26,301,000
Philadelphia
12,327,000
12,527,000
29,866,000
31,925,000
Cleveland
1,743,000
1,743,000
11,114,000
17,214,000
Richmond
3,803,000
4,003,000
26,376,000
30,978,000
Atlanta
33.851,000
65,656,000
143,809,000
202,226,000
Chicago
4,942,000
5,224,000
22,609,000
25,209,000
St. Louis
3,965,000
4,947,000
13,997,000
18,647,000
Minneapolis
12,358,000
12,358,000
45,6o4,ooo
45,6o4,ooo
Kansas City
4,675,000
5,375,000
17,375,000
17,425,000
Dallas
23.888,000
23,888,000
66,007,000
78,057,000
Francisco
h/San
Tnn,,H
price
of 99.4C3
M *oliG 249 000 nonccinm titive tenders accepted at the average85co,oo4,coo
£/
8812,738,000
^1,100,1^1,000
b/
non w
$1,930,835,000
TOTALS
0/ Includes .i>2Ug,^uy,OUV ^ '^. *__. +rt„H0,,e. accented at the average pries of 9o.?59
V includes $51,007,000 n o n e ^ i t l ^ e te^e.^acccpted t
g^P
^ ^
to
6 1
r
1/ On a coupon issue of ® f™ . ®?!™. ,J£ XL the 91-dav bills, and 2.52?, for to.
182-day bills. iln^e^/f.n(.(:, amount of the bills payable at maturity ratn.r Ui^.
the return ^
^
^
t
^
^
^ J £ B 1 number of days related to a 360-dr-r
the ~
t
™
^ ^ s on certificates, notes, and bonds are computed intor:•;
„ * _ _ £ . ? S H K ' a S - t invested,'and relate the number of days « ~ u « u a s ^ an
? n t » ^ t oav^enneriod to the actwl nunfcer of days in the period, W : i sc/o",-...
i S ^ ^ S 3 - ^ . « * * one coupon period is involved.
Financing of the Highway Trust Fund
Rates
: R a t e s u n d e r Rates under
Rates
prior to : 1 9 5 6
Federal-aid
under
Presidents N*
^ „
1956
: Highway
Highway
Highway : R e v e n ue Act Act of 1959 proposal : 1957 :1958-61
Revenue Act:
Fiscal year
p^HT^OIiSI--^
Item
1962-64
1962-72"
1
President
1965-72
proposal
Percent
Gallon
Diesel fuel 2/ .
Gallon
Trucks and buses
Mfrs. price
Tires - for highway vehicles
others
Pound
Pound
5/
no change
Pound
9i
no change
Tread rubber ,
Pound
0
Use tax on trucks and buses 4/
Taxable
gross weight
0
Tubes
••
,
Floor stocks taxes:
Gasoline
•
Tires for highway vehicles
••••
Tread rubber
Tubes
•••••
Trucks and buses •
_
Passenger automobiles •••••
•••••
10/o
U
$1.50 per
M lbs.
Mfrs. price
no change
Mfrs. price
Automobile parts and accessories ....
Q'fo no change
100
100
100
100
100
20
50
50
50
50
37_
100
100
100
100
100
100
100
100
no change
100
100
100
100
no change
100
100
100
100
no change
100
100
100
100
no change
10
no change
no change
lOe'
no change 3/ no change
2
i
°
0
100
100
100
100
-__
--
100
100
100
0
0
100
I
—
100
u
3i
•) ^
100
' no change { 100
Hi! li - I
Gallon
Pound
Pound
Pound
Mfrs. price
Treasury Department
100
ki l/
Gasoline .......
y
1/ For period October 1, 1959 through June 30, 1961.
2/ Includes special motor fuels.
#'/ T . + % +4-«« -taxed at 1-cent per pound beginning June 1, i960.
3/ Lamxnated tires ^ x ?
*
weign-fc in excess of 26,000 pounds.
S. Vehicles ^ J ^ e q u f y a l e n t to *_* o_ 5 ^ e n t .
no change
no change
no change no change
0
50_5/
0
62J 5/ 0 0
March 14, I96I
now approach $#00 aillioa a fm&r.
Wn&m the oiroasistaaces, It
is iaooasisteat to us® the reveaties derived from aviatioa gasolin
to help imtm highways.
President Kennedy's proposal with respect to aviation gasoline
revenues 414 not include any recommendation® as to aa increase ia
the level of taxation of aviation gasoline or the taxing of jet
fuel, which 1® now free of tax. We believe, along with tae previou
Admiaistration, that these products should make a greater contribution to Federal revenues in view of the heavy Federal expeaditures for airways. However, we have aot finished our analysis of
the situation aad, therefore, are aot nakiag aay suggestions for
change at this time.
To sum ap, X believe that we have got to keep our Federal
Highway Program moving ahead — aad that we should do so oa a
pay-as-you-build basis.
O0O
••11**
specifically the automotive users of the roads* Federal aid to
roads came Into being because of the developmeat of the automobile
aad truck, aad Federally aided roads are designed aad feuilt for
automotive traffic aeeds. Since highways built with Federal aid
exist because of the need for actor roads aad would aot exist exce
for motor travel, the additional revenue should come £rem motor
vehicles.
Let me say a fiaal few words regarding one further item
meatloaed by the President: the use of receipts from the a eeats
per gallon tax oa aviatioa gasoline. Ifeese receipts, about $22
millioa ia fiscal 1©62, are sow traasferred to the Highway Trust
Fund, the President recommended that ia the future aviatioa
gasoline receipts be retaiaed ia the geaeral fuad of the Treasury.
alrsraft operators use a Federal airways system which provides
services that may be compared with the Federal highway system.
Federal costs for operating aad improving the airways system
(excluding airport graats aad weather aad other indirect services)
now appro&ek
-4u
-10*-
„. "T" '«'
such a shift of the tax burdea is elearly borae oat by various1*
State aad Federal atudiep. The shift would asslga to heavier
trucks a more reaseaable share of the highway bulIdlag coats
attributable to them. For its part, the Treasury would seaside*
either alteraative to be f laaaeially satlsf aetery beeamse bath
the aead to fiaaace the highway program from additional reweaaes.
I should poiat out that both alternatives appear to leave a
shortfall of about $1 billioa by the ©ad of fiscal 1*72 relative
to preseat intimated f iaaaciag aeeds. Slace this ia about % peret
of total reveaues over the life of the Fumi, It ahould permit the
taxes to sad before the elose of the oaieadar year ls72. We are
dealing with revemue aad expeaditure ea time tea up to a decade i
tha future, ao there will be ample time ia the future te take ears
of suoh miaor adjustmeats. cmym * -iaa w^'
Of course the additieaal taxes of about $900 millisa tint
tha Fresideat haa reoommeaded meaa additloaal burdeaa whieh la
all fairness meat be Justified. The Highway Program benefits meat
specifically
fas
aaae
Present
rata
M t M M W i
^mmmmmm
Diesel fuel aad
special motor fuel
galloa
Trucks aad buses 1,000 lbs.
ower 26,000 lbs.
of gross
weight
Highway tires peuad Bf Bf
irn i i i m
Rate aa of
July 1 uader
preoeat law
late
proposed
by
Frealdeat
Mtmmmammmmmmwmmmmmmmmmmmmmmmt
4$
$$
$l.o0
$1.50
mmmmmmmmm.mmmm.mmm
$5.00
10*
Inner tubes pound B# 99
10$
Tread rubber pouad 3$ 3$
10$
His alternative suggestion, which also was the recommendatioa
of the preMeus Administration, was to increase the tax oa motor
fuels to 4*1/2 oeats a galloa, but without other tax increases.
TO obtain a lull perspective ox tae increases proposed Dy
the President, as compared with present Highway Trust Fund tax
rates, X reter you to the table attached to my statement.
While either of theae alternative programs would raise
approximately $900 million a year at preaeat levels of consumption
the first — which is the President's preference -- would shift ft
coasiderable part of tho increase oa to heavier trucks using diese
fuel, rather thaa oa to motorists ia general. The desirability ot
such
tc
byproduct of the highway program
Flth these considerations ia m*as« aaa aixer wewxewimg
possible methods of finaaeiag, the Fresident decided that it f
would be preferable to raise additloaal revenues from the exeises
whlah h.r. torn earmarked te support tha highway program
As you remember, he made alternative suggestions ia
this respect.
His first preference was the retention of the preaeat four
to three seats oa July 1 aa scheduled under preaeat law.
Aa part
of thia program, he recommended increases ia certaia other taxea
as follows:
149
4aht isaues oould reduce the interest estimate somewhat, but there
would still be biilieas of interest costs ^ dollars that build ao
roads.
lbs President haa definitely stated that he believes defia4|
fiaaaciag for the Federal Highway Program would be aa unwise
decision aad that the amendment to Section MB of the Highway Seven
Act of 1956 limiting highway aid apportioameats to estimated trust
Fuad revenues should be continued ia force. The Presldeat la
pledged, "barring a worsening economy to submit to the Omaress
programs (aside from any new defeaae outlays) which of aad by
themselves will aot unbalance the budget=previouely submitted."
To fiaaaoe the highway program by diverting reveaues now going to
the geaeral fuad from the tax oa passenger automobiles aad parts
aad aooeasoriea would constitute a deliberate unbalancing of the
budget. Aa the President said, "This is a decision which, if it
is taken at all, should be taken oa its merits, ia relation to the
state of the economy aad the budget aa a whole, aot aa aa accident
byproduct
1 -I :
-_ — w
to measure the cost of bead f iaaaeiag, but the cost ia still ther
A special bead issue te f isaace the Iaterstate System was pro*
posed to the Congress ia 1955. The Ceagress considered the interes
east disadvaatages of bonds aad decided oa a pay-aa~you~build appr
X think that decision is just as sound today aa it was la 1955.
The magaltude of interest coste, if we ware to take this route
toward cempletiag the Federal Highway Program, would be heavy inde
The President said ia his message that a special highway bead prog
to finish the Iaterstate System as mow pleased woald cost $3.6 bil
ia imterest. This figure was based upon three assamptieas: oae,
a 4 pereemt interest rate. Two, redaetioa of the motor fuel tax
to 3 ceats pmr gallom oa July 1, 1991. Three, repeal of the aow
scheduled diveraion for fiscal 1999-94 of the equivalent of a 5 pe
tax oa paaaeager automobiles aad parts aad aeceaserlea. The Highwa
Trust Fuad would hawa to be heat ia being through most of fiseal
1981 to retire the bonds which would amouat to over $19 billies at
their maximum. Flmaaeiag the highway cost through regular Federal
debt
**o—
JL w i.
aot solve the preble*. It would merely traasfor it to another
portion of the over-ail Federal budget.
To use some of the previously expeoted geaeral s,f mad reveaues
for highways would be tantamount to makiaa oae of these assumptions
""J^^mi w
*•» <mirflpma^W^HPJJ
me?iim«Si < a w r a a H B .
]|_rahe*^^*mvd*^s»
^* wyj^F"^a>~!^~Ma^BF
as^%»amww
jp'-*mjr^^mH*awmp~^r .
expenditures for
i< defease, aid to farmers, aid to veterans, etc.
.... -Imwiii that
ti these latter functions should be carried oa as
plaaaed by increasing, taxes used for general fuad purposes. . ,_.
that highway building should be financed by deficits.
I am sure it is aot iateaded to use diversions from the g<
fuad for highway 1 iaaaoiag aa a means of reducing other Governmen
programs.
Oa the other hand, X am aot aware of amy interest ia
increasing taxes to offset the Immm to the general fuad of aay
h
diversion to the Highway Trust Fuad,% Coasefueatly* it is meat life**!
that diversion will in fast mean the use of deficit financing to
build our highwaye. Fiaaaciag the highway ^^agram by iasreasiag
the level of the geaeral Federal .debt may make it diffi^
to measure
1^
-4-
Federal Highway program was set up, it was well understood that th
Federal Government would have to spend considerably more oa highwa
aid thaa the equivalent of receipts then being obtalaad from the
gasollae tax aloae. Thus, la makiag the 1909 program possible,
Congress decided to impose a few aew automotive taxes — tread
rubber aad the truck weight tax — to increase the rates on others
— motor fuels, highway tires, sales of trucks — aad to use the
resultlag additional revenues, plus most of the then existlag
revenues from these sources, for highway aid.
Other revenues from these aad from other automotive products
were retaiaed as general revenue sources.
To reverse the 1939 decision would be highly undesirable.
It
would repreaaat aa attempt to avoid admitting that the highway
program la costing more money thaa est last ed. more revenues are
required. Diverting monies from the general fuad for highway aid
would reduce revenues required for other aeeda of the Government,
around which other important programs have been built. This would
aot
~3and 1994 for the Iaterstate fyatem are eet at $2.2 billion.
Because of estimated shortagea of Trust Fuad revenuesunder
present law. however, it sow appears that apportioame^i#t# States
for fideal 1993 oaa only be $2 billion, and for fiscal 1994, $1.5
billion. Thereafter, under preaeat law, revenues would permit
apportionments to rise slowly to a maximum of $1.9 billion in 1968
compared to aa estimated requirement ia that year of $3 billion.
Under preaeat law, diversions from the general fuad to the
Trust Fuad amounting to $2.5 billion are scheduled during the fisc
years 1962-64.
President Kennedy, just aa President Eisenhower before him, has
requested that this diversion aot be permitted to occur. Instead,
both have supported the 1939 decision for financing the Highway
Trust Fuad. The original legislation setting up the Highway trust
Fund represented a decision that some — but aot all — reveauea ***
excises oa automotive products be used for highway purposes.
At this peiat, it is important to remember that when the aew
Federal
-21 KA
previously plaaaed Interstate System.
We.now see clearIF that
considerably more money thaa waa first aatieipated muat be raised
to pay for the System if it is to be finished as scheduled. -
.^;
w mass ^^s^'m-^s^'^s^^.^mmiiii^^s^m^^^m^mmkmm-^ ...^=_„-B. „_.
We caaaoj lgaore this need for additional fuada.felilotld
continue the fiaaaaiag ex^ttNk^yrogram aader the priaeiples which
guided the Congress la 1956 j&eo It authorilfred^the program aad
out the fiaaacial blueprint fer making it a reality. c/
The Highway Trust Fuad will seed an additioaal $9.7 billies by
1972 to meet the aatieipated extra ooata, aad $12.2 billioa if th
presently scheduled diversion for fiscal 1962-64 of revenues froa
the geaeral fuad of the Treasury is rescinded.
bet us take a look at the eitnation faeiag us ia the aext few
years ia order to put these figures ia better perspective!
Highway aid iavolvea planalag aad apportionments to States far
ia advaaae of the time tha faada are aetualiy apeat. Wmw thia
reason, Ifft~- ~,gggHT"*4~T~-*- will be made thia summer for the
year 1993. Under preaeat law, author last i one for both fiscal 1
1994
1
<u -y
For Release: %®a delivery
_f
March 14, 1991
,c4
mmm
WE
mmxTtm OH WAYS m& HBAHS
©F TOS H©OTI $§? MnBftllTATSVBf^ . .„«, j*
OH FINANCING THE FEDER/,L-AID HIGHWAY PROGRAM,
TUESDAY, 1*A8®I 14, 1991, 10109 A.M.
rum€
The transportation potential of the Federal Highway Program's
network of roads •— its eoatributi^wa tooths economic, agric
and industrial growth of the Station, as well as to its secu
is clearly visible. We have the engineers, machinery, aad ma
to carry out the program easily withia the time limit contem
Furthermore, highway construction is making a positive contr
at this moment by putting uader-employed manpower and machin
However, aa President Kennedy said la hla message of February 2
the pay-as-you-go Federal Highway Program is ia trouble,
Ifswe j^jto'^w^ii^y^out the Program as plaaaed* if »g|__Arj» to
»3M
Five years have now passed since it was.decided to compl
m/y - ^ ^ previously
;
_1
TREASURY DEPARTMENT
Washington
For Release: Upon Delivery
March 14,, 196l
STATEMENT OF THE HON. DOUGLAS DILLON,
SECRETARY OP THE TREASURY,
BEFORE THE COMMITTEE ON WAYS AND MEANS
OF THE HOUSE OF REPRESENTATIVES,
ON FINANCING THE FEDERAL-AID HIGHWAY PROGRAM,
TUESDAY, MARCH 14, 196l, 10:00 A.M.
The transportation potential of the Federal Highway Program's
network of roads — its contribution to the economic, agricultural
and industrial growth of the Nation, as well as to its security —
is clearly visible. We have the engineers, machinery, and manpower
to carry out the program easily within the time limit contemplated.
Furthermore, highway construction is making a positive contribution
at this moment by putting under-employed manpower and machinery to
work.
However, as President Kennedy said in his message of February 28,
the pay-as-you-go Federal Highway Program is in trouble.
Five years have now passed since it was decided to complete the
previously planned Interstate System. We now see clearly that
considerably more money than was first anticipated must be raised
to pay for the System If It is to be finished in the early 1970*s
as scheduled.
The Highway Trust Fund will need an additional $9.7 billion by
1972 to meet the anticipated extra costs, and $12.2 billion if the
presently scheduled diversion for fiscal 1962-64 of revenues from
the general fund of the Treasury is rescinded.
Let us take a look at the situation facing us in the next few
years in order to put these figures in better perspectives
D-39
Highway aid involves planning and apportionments to States far
In advance of the time the funds are actually spent. For this
reason, State apportionments will be made this summer for the fiscal
year 1963. Under present law, authorizations for both fiscal 1963
and 1964 for the Interstate System are set at $2.2 billion.
Because of estimated shortages of Trust Fund revenues under
present law, however, it now appears that apportionments to States
for fiscal 1963 can only be $2 billion, and for fiscal 1964, $1.5
billion. Thereafter, under present law, revenues would permit
apportionments to rise slowly to a maximum of $1.9 billion In 1968,
compared to an estimated requirement in that year of $3 billion.
Under present law, diversions from the general fund to the
Trust Fund amounting to $2.5 billion are scheduled during the
fiscal years 1962-64.
President Kennedy, just as President Eisenhower before him,
has requested that this diversion not be permitted to occur. Instead, both have supported the 1956 decision for financing the
Highway Trust Fund. The original legislation setting up the Highway
Trust Fund represented a decision that some — but not all —
revenues from excises on automotive products be used for highway
purposes.
At this point, It Is important to temember that when the new
Federal Highway program was set up, it was well understood that the
Federal Government would have to spend considerably more on highway
aid than the equivalent of receipts then being obtained from the
gasoline tax alone. Thus, in making the 1956 program possible,
Congress decided to impose a few new automotive taxes — tread
rubber and the truck weight tax --to increase the rates on others
— motor fuels, highway tires, sales of trucks — and to use the
resulting additional revenues, plus most of the then existing
revenues from these sources, for highway aid.
Other revenues from these and from other automotive products
were retained as general revenue sources.
To reverse the 1956 decision would be highly undesirable. It
would represent an attempt to avoid admitting that the highway
program is costing more money than estimated. More revenues are
required. Diverting monies from the general fund for highway aid
would reduce revenues required for other needs of the Government,
around which other important programs have been built. This would
not solve the problem. It would merely transfer it to another
portion of the over-all Federal budget.
To use some of the previously expected general fund revenues
for highways would be tantamount to making one of these assumptions:
- 3-
1S®
That highway building should replace nome planned expenditures for defense, aid to farmers, aid to veterans, etc.
Or, that these latter functions should be carried on as
planned by increasing the taxes used for general fund purposes.
Or, finally, that highway building should be financed by deficits.
I am sure it is not intended to use diversions from the general
fund for highway financing as a means of reducing other Governmental
programs. On the other hand, I am not aware of any interest in
increasing other taxes to offset the loss to the general fund of any
diversion to the Highway Trust Fund. Consequently, it Is most likely
that diversion will in fact mean the use of deficit financing to
build our highways. Financing the highway program by Increasing
the level of the general Federal debt may make it difficult to
measure the cost of bond financing, but the cost is still there.
A special bond issue to finance the Interstate System was proposed to the Congress in 1955. The Congress considered the interest
cost disadvantages of bonds and decided on a pay-as-you-build approach.
I think that decision is just as sound today as it was in 1955.
The magnitude of interest costs, if we were to take this route
toward completing the Federal Highway Program, would be heavy indeed.
The President said in his message that a special highway bond program
to finish the Interstate System as now planned would cost $6.6 billion
in interest. This figure was based upon three assumptions: one,
a 4 percent Interest rate. Two, reduction of the motor fuel tax
to 3 cents per gallon on July 1, 1961. Three, repeal of the now
scheduled diversion for fiscal 1962-64 of the equivalent of a 5 percent
tax on passenger automobiles and parts and accessories. The Highway
Trust .Fund would have to be kept in being through most of fiscal
1981 to retire the bonds which would amount to over $16 billion at
their maximum. Financing the highway cost through regular Federal
debt Issues could reduce the interest estimate somewhat, but there
would still be billions of interest costs — dollars that build no
roads.
The President has definitely stated that he believes deficit
financing for the Federal Highway Program would be an unwise
decision and that the amendment to Section 209 of the Highway Revenue
Act of 1956 limiting highway aid apportionments to estimated Trust
Fund revenues should be continued in force. The President is
pledged, "barring a worsening economy, to submit to the Congress
Programs (aside from any new defense outlays) which of and by
themselves will not unbalance the budget previously submitted."
- 4To finance the highway program by diverting revenues now going to
the general fund from the tax on passenger automobiles and parts
and accessories would constitute a deliberate unbalancing of the
budget. As the President said, "This is a decision which, if it
is taken at all, should be taken on its merits, in relation to the
state of the economy and the budget as a whole, not as an accidental
by product of the highway program."
With these considerations in mind, and after reviewing
possible methods of financing, the President decided that it
would be preferable to raise additional revenues from the excises
which have previously been earmarked to support the highway program.
As you remember, he made alternative suggestions in this respect.
His first preference was the retention of the present four
cents per gallon tax on gasoline, rather than allowing it to be
reduced to three cents on July 1 as scheduled under present law.
As part of this program, he recommended increases in certain other
taxes as follows:
Diesel fuel and
special motor fuel
Rate
proposed
by
President
Tax
base
Present
rate
Rate as of
July 1 under
present law
gallon
H
3t
n
$1.50
$1.50
$5.00
8^
8$
10^
Highway tit*es
1,000 lbs.
of gross
weight
pound
Inner tubes
pound
9tf
9t
10^
Tread rubber
pound
3i
3t
10#
Trucks and buses
over 26,000 lbs.
His alternative suggestion, which also was the recommendation
of the previous Administration, was to increase the tax on motor
fuels to 4-1/2 cents a gallon, but without other tax increases.
To obtain a full perspective of the increases proposed by
the President, as compared with present Highway Trust Fund tax
rates, I refer you to the table attached to my statement.
While either of these alternative programs would raise
approximately $900 million a year at present levels of consumption,
the first — which is the President's preference — would shift a
considerable part of the increase on to heavier trucks using diesel
fuel, rather than on to motorists in general. The desirability of
such a shift of the tax burden is clearly borne out by various
State and Federal studies. The shift would assign to heavier
trucks a more reasonable share of the highway building costs
attributable to them. For its part, the Treasury would consider
either alternative to be financially satisfactory because both meet
the need to finance the highway program from additional revenues.
I should point out that both alternatives appear to leave a
shortfall of about $1 billion by the end of fiscal 1972 relative
to present estimated financing needs. Since this is about 2 percent
of total revenues over the life of the Fund, it should permit the
taxes to end before the close of the calendar year 1972. We are
dealing with revenue and expenditure estimates up to a decade in
the future, so there will be ample time in the future to take care
of such minor adjustments.
Of course the additional taxes of about $900 million that
the President has recommended mean additional burdens which in
all fairness must be justified. The Highway Program benefits most
specifically the automotive users of the roads. Federal aid to
roads came into being because of the development of the automobile
and truck, and Federally aided roads are designed and built for
automotive traffic needs. Since highways built with Federal aid
exist because of the need for motor roads and would not exist except
for motor travel, the additional revenue should come from motor
vehicles.
Let me say a final few words regarding one further item
mentioned by the President: the use of receipts from the 2 cents
per gallon tax on aviation gasoline. These receipts, about $22
million in fiscal 1962, are now transferred to the Highway Trust
Fund. The President recommended that in the future aviation
gasoline receipts be retained in the general fund of the Treasury.
Aircraft operators use a Federal airways system which provides
services that may be compared with the Federal highway system.
Federal costs for operating and improving the airways system
(excluding airport grants and weather and other indirect services;
now approach $600 million a year. Under the circumstances, it
is inconsistent to use the revenues derived from aviation gasoline
to help build highways.
- 6President Kennedy's proposal with respect to aviation gasoline
revenues did not include any recommendations as to an increase in
the level of taxation of aviation gasoline or the taxing of jet
fuel, which is now free of tax. We believe, along with the previous
Administration, that these products should make a greater contribution to Federal revenues in view of the heavy Federal expenditures for airways. However, we have not finished our analysis of
the situation and, therefore, are not making any suggestions for
change at this time.
To sum up, I believe that we have got to keep our Federal
Highway Program moving ahead — and that we should do so on a
pay-as-you-build basis.
0O0
Financing of the Highway Trust Fund
Item
Tax
base
Fiscal year
Rates
Percent of receipts appropriated to Trust Fund
under
~
1962-72
1956
: Highway
Highway President's
1965-72 President's
1958-61 1962-6U
1957
Highway '-Revenue Act Act of 1959 proposal
proposal
Revenue Act:
•Percent"
~
y
Rates
prior to
:
Rates under Rates under
:
195o
Federal-aid
U
M
Hll
Hi!
no change
100
100
100
100
100
74
100
100
100
100
100
Diesel fuel 2/ Gallon
H
H
8$
10$
no change
no change
20
50
50
50
50
Trucks and buses Mfrs. price
Tires - for highway vehicles Pound
others
.
H
37_
0
100
100
100
100
100
100
100
100
Gasoline
Gallon
Pound •
no change
10c/
no change
no change 3/ no change
no change
no change
0
100
100
100
100
10??
no change
10??
100
100
100
100
100
no change
$5
100
100
100
100
100
u
100
100
100
100
2
ti
Tubes Pound
94
Tread rubber Pound
0
Use tax on trucks and buses _/ ...... Taxable
gross weight
Floor stocks taxes:
Gasoline
Gallon
Tires for highway vehicles ......... Pound
Tread rubber
Pound
Tubes
Pound
Trucks and buses
Mfrs. price
0
Passenger automobiles Mfrs. price
Automobile parts and accessories .... Mfrs. price
Zi
$1.50 per
M lbs.
—
"i
5
100
100
100
--
100
10$
no change
no change
no change
0
0
50_5/
8#
no change
no change
no change
0
0
• 62_ 5/
March 14, 1961
Treasury Department
1/
2/
3/
tf
5/
For period October 1, 1959 through June 30, I96I.
Includes special motor fuels.
Laminated tires taxed at 1-cent per pound beginning June 1, i960.
Vehicles with taxable gross weight in excess of 26,000 pounds.
Actually, receipts equivalent to tax of 5 percent.
f -1
CO
r.
STATUTORY DEBT LIMITATION
A S . O P .r»bro_y28. 1961
',' Q 1
^ l , ^15,1961
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued under
of that Act, and the face amount of obligations guaranteed as to principal and interest by the United States Accept such,guaranteed obligations as may be held by the Secretary of the Treasury), "shall not exceed in the aggregate $285,OQQ,000,00(
(Act of June 30, 1959; U.S.C., title 31, sec, 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holdei
shall be considered as its face amount." The Act of June 30, I960 (PL. 86-564 86th Congress) provides that during the period
beginning on July 1, I960 and ending June 30, 1961, the above limitation ($285,000,000,000) 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 undet
this limitation :
Total face amount that may be outstanding at any one time
$293*000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $39,942,377,000
Certificates of indebtedness
Treasury notes
BondsTreasury
* Savings (current redemp. value)
Depositary.
R.EcA. series
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
Total interest-bearing
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series.
,
,
3B__t ._j_t..f.l.-D9- el,..Asa. .n.
Total
1 1 , 503 »147 1000
58,660.653,000
79,762,604,850
47,327,154,782
126,813,000
14,119,000
6,075,763,000
7,341,985.000
8 , 847 ,768 , 000
2?,ff71^,000
$110,106 ,1771 000
133.306,454,632
43,727,138.000
287,139,769,632
396,669,975
}
51,457.648
759,707
2,498,000,000
-57.,&52.r20Q..
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F . H . A A . . ^ . . S t a d B d S .
194,561,650
Matured, interest-ceased..
1,505,375,
Grand total outstanding
Balance face amount of obligations issuable under above authority,.
2,607.869,555
290,144,309,162
196*067,025
Reconcilement with Statement of the Public Debt ..„F©br^2^#>28A„.1961
(Date)
(Daily Statement of the United States Treas_y,...,,.,.^.?b.^a^<_28A>#<l§61
(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
D-40
290.340.376.187
2,6591623»813
j
290,543,590,281
, „• l " P | 0 V f f " 4 2
290,739*657»30O
399.281,119
290,340,376,187
STATUTORY DEM'LIMITATION
AS OF February 28, 196I
_
; C4
" ^^gzzzyyyy^
Washington, . , . ^ ? A _ 5 i i Z _ _ _
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 3Uch 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 ejection the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder
shall be considered as its face amount." The Act of June 30, I960 (P.L. 86-564 86th Congress) provides that during the pe^pd
beginning on July 1, I960 and ending June 30, 1961, the above limitation ($285,000,000,000) 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 be outstanding at any one time
$293,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $39,942,377,000
Certificates of indebtedness
11,503,147,000
Treasury notes
Bonds-
58,660.653,000
Treasury
* Savings (current redemp. value)
Depositary.
R.E*A. series
7 9 ,762 ,604,850
47,327,154,782
126 , 813 , 000
1 4 , 1 1 9 ,000
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
Total interest-bearing
Matured, interest-ceased
6,075,763,000
7,341,985,000
8 ,847 1 7 6 8 , 0 0 0
27.537.385.000
$110,106,177,000
133.306,454,632
43.727.138,000
287,139.769,632
396,669,975
)
Bearing no interest:
United States Savings Stamps
51,457,648
Excess profits tax refund bonds
Special notes of the United States:
Internat'l Monetary Fund series
759»707
2,498,000,000
Xca_t .Int,.!.l..Davel...Ass.l.n,
Total
.57-,£52.,.200..
2,607.869.555
290,144,309,162
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F . H . A A J C . . S t a d B d s .
194,561,650
Matured, interest-ceased
1,505,375
Grand total outstanding
Balance face amount of obligations issuable under above authority
196«067,025
Reconcilement with Statement of the Puhtic Debt ...February..28A...196l
(Date)
(Daily Statement of the United States Treasury,
;lMW?.^...?.?..»...l.Spl.
„
..
'
(Date)
OutstandingTotal gross public debt
Guaranteed obligations not owned by the Treasury,
Total gross public debt and guaranteed obligationa
Deduct - other outstanding public debt obligations not subject to debt limitation
, 2 9 Q t 2 ^ ° 1,27.6tlfi?.
2 , bjy % OCj , O-Lj
)
'290,543,590,281
,4-7,9I0.0/ «"^.S.
290,739,657.306
399.281,119
290,340,376,187
D-40
«_ w >*•
<—f~
_
March 10, 196l#
^~- T___following letter today was made public by the Treasury De
Dear Mr. Salinger:
Thank you for your memorandum of February 28, 1M1,
enclosing a letter from Mr. H. E. Salisbury of the *lfew
York times", concerning delays la receiving copies of
the Soviet newspaper "Pravda" published ia Moscow,
A check with Sew York authorities disclosed that
parcels containing newspapers are stamped without examination by Customs. However, the local Postmaster had
requested that such paresis bear the customs stamp to
show that they bad received customs treatment. Hence,
when such parcels arrived oa a weekend, they received
customs treatment the following business day.
Arrangements have now been made between the Collector
of Customs at Hew York and the local Postmaster to place
ia tho city mail amy current newspapers aad magazines,
including those from the Soviet Union, without the
customary "Customs Wrm&** stamp. Such publication*
arriving over the weekend would, of course, receive
similar treatment.
I bops these arrangements will help to contribute
to the freest possible flow of information between our
own and other countries.
Sincerely yours,
Douglas 01lion
Honorable Pierre Salinger
press Secretary to the President
the finite Rouse
Washington 25, 0. C.
Customs: RKljiben: bin 3-6-7-61
Rewritten -^©Donnelley:jc 3-10-61
TREASURY DEPARTMENT
|||U lllill III'"' ' "mmmm., ^mmmmmmmmmmmmumm,
I.uiJ»__«_____«IW«i___B____a
WASHINGTON, D.C
FOR IMMEDIATE RELEASE,
Tuesday, March 14, 1961.
D-41
The following letter today was made public by the Treasury
Department:
March 10, 1961
Dear Mr. Salinger:
Thank you for your memorandum of February 28, 19&1*
enclosing a letter from Mr. H. E. Salisbury of the
"New York Times", concerning delays in receiving copies
of the Soviet newspaper "Pravda" published in Moscow.
A check with New York authorities disclosed that
parcels containing newspapers are stamped without
examination by Customs. However, the local Postmaster
had requested that such parcels bear the customs stamp
to show that they had received customs treatment.Hence, when such parcels arrived on a weekend, they
received customs treatment the following business day.
Arrangements have now been made between the
Collector of Customs at New York and the local
Postmaster to place in the city mail any current
newspapers and magazines, including those from the
Soviet Union, without the customary "Customs Free"
stamp. Such publications arriving over the weekend
would, of course, receive similar treatment.
I hope these arrangements will help to contribute
to the freest possible flow of information between our
own and other countries.
Sincerely yours,
/s/ Douglas Dillon
Douglas Dillon
Honorable Pierre Salinger
Press Secretary to the President
The White House
Washington 25, D. C.
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, March 15, 1961.
D-k2
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961, to
March 4, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955:
Commodity
Established Annual
Quota Quantity
Buttons.
765,000
Cigars..
Coconut oil
: Imports
Unit
as of
of
Quantity [March 4, 1961
Gross
38,923
180,000,000
Number
655,965
403,200,000
Pound
27,072,028
Cordage.
6,000,000
Pound
391,720
Tobacco....,
5,850,000
Pound
3,000,386
"*-» ^
V«/
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
Wednesday, March 15>, 1961.
D-l*2
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961, to
March 4, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955:
Commodity
Buttons„......
Established Annual
Quota Quantity
765,000
Unit
: Imports
of
: as of
Quantity :March 4, 1961
Gross
38,923
655,965
Cigars........
180,000,000
Number
Coconut oil...
403,200,000
Pound
27,072,028
Cordage.......
6,000,000
Pound
391,720
Tobacco
5,850,000
Pound
3,000,386
TREASURY DEPARTMENT
Washington, D. G.
IMMEDIATE BSLEASS
Wednesday, March 15, 1961.
D-ltf
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 1?5«
QUARTERLY QUOTA PERIOD • January », 1961 - March 3», 1961
IMPORTS • January », 1961 - March fj, 1961
ITEM 391
Country
of
Produotion
Australia
ITEM 392
a Lead bullion or base bullion,
t lead in pigs and bars, lead
Lead-bearing ores, flue dust,! dross, reclaimed lead, scrap
and matte*
: lead, antimonial lead, antit aonial scrap lead, type metal,
t all alloys or combinations of
j
lead n.s.p.f.
Oiarterly Quota
:Quarterly Quota
j Dutiable. Lead
Imports : Dutiable Lead
Haporta
(Pounds)
(Pounds)"
10,080,000
5,944,788
23,630,000
ITEM 394
ITEM 393
:
i
i
t
: Zino-bearing ores of all kinds,: Zino ia blooks, pigs, or slabs;
: except pyrites containing not s old and worn-out zino, fit
t
over 3% of tino
t only to be remanufaotured, zino
:
:
dross, and zino skimmings
t
: Quarterly _iota
tQuarterly Quota
Imports
t Dutiable Zinc
Imports ; By Weight
(Pounds)
(Pounds)
22,687,898
Belgian Congo
5,440,000
Belgium and
Luxemburg (total)
Bolivia
5,040,000
4,217,279
Canada
13,440,000
3,44o,ooo
15,920,000
12,349,542
66,480,000
37,379,636
Italy
Mexico
Peru
l6,l6G„G00
7,730,987
On. So. Afrioa
14,880,000
14,880,000
Yugosloria
All other foreign
oountries (total)
6,560,000
6,560,000
3,417,192
7,520,000
»»,750,6I9
37,840,000
22,284,005
3,600,000
663,152
1,792,026
36,880,000
23,978,378
70,480,000
58,743,072
6,320,000
12,880,000
3,eo2,H»rt>
35,120,000
30,127,982
3»76o,ooo
15,760,000
1*1,273,717
6,080,000
6,080,000
17,840,000
17,840,000
6,090,000
1,759,419
6,080,000
f RSASURY DEPARTMENT
Washington/ D* Ce
H&2DIATE RSLEASS
D-U3
'Wednesday, March 15, 1961,
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? UN_ANUFACTURSD LEAD AND ZIKC CHARG3ABLS TO ?HS QUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO. 3257 0? SEPTEMBER 22, ly5*
QUARTERLY QUOTA PERIOD • January f, i961 - March 31, 196!
IMPORTS- January J, 1961 - March f3, \$6\
jrrjM_j2__-__--_-------
J^__LJ£L
Country
of
Production
Australia
I
t
Lead-boaring ores, flue dust,s
aad mattes
:
:
3
__ *
aaartarly Caota
i Dutlabis^Lead
Imports
Pounds
10,080,000
5,944,788
Lead buTticn or base bulTionTs
lead in pigs and bars, lead
s Zino-baaring oras ©f all kinds, Zino in blocks, pigs, or slabs;
d?033, reolaiaad lead, sora?
old and ^om-out zino, fit
except pyrites containing- aot
lead, antisonial load, antionly to ba rsaianufacturad, zinc
cvar 3^ of sino
aonlal scrap load, type aatal,
dross, and zinc skisxaings
all alloys or combinations of :
s
_
l®_i__ _2ljX*
*
Quarterly Quota
: Quartsrly feieta
_irt3rly Quota
E7 £ei?ht
Imports
Inoorts
Isoorts s Dutiable Zinc
DutiabU Lsad.
(pounds)
(Pounds)
Pounds
*L
23,680,000
. — — — ^ a ^ w i y i II.III •• ' MIL HI J r
22,687,898
5,440,000
3,417,'92
7,520,000
4,750,619
37,840,000
22,284,003
3,600,000
663,152
58,7^3,072
6,320,000
1,792,026
30,127,982
3,760,000
1,759,419
Belgian Congo
Eelgiuni and
Luz9aburg (total)
Bolivia
5,040,000
4,217,279
Canada
13,440,000
15,440,000
12,349,542
66,430,000
37,579,636
m
Italy
Ksxioo
Peru
l$,l6C,G00
7,750,987
Un. So* Afrioa
14,880,000
14,880,000
Yugoslcvia
All other foreign
countries (total)
15,920,000
6,560,000
PPJZ.?>.P_D H* TH2 BUXSMJ OT CUSTOMS
6,560,000
36,880,000
23,978,378
70,480,000
12,830,000
3,802,446
35,120,000
15,760,000
«4,275,717
6,080,000
6,080,000
17,840,000
17,840,000
6,030,000
6,060,CCO
COTTON WASTES
(in pounds)
:
7 7?
1E?3H£«*_ ? ™ r«*a_s_,'i'a__Established
TOTAL QUOTA
Country of Origin
United Kingdom . . . . .
Canada
4,323,457
239,690
France
227,420
British India
.
69. 627
Netherlands . . . . . . .
68,^240
Switzerland . . . . . . .
44,388
Belgium
.
38,559
Japan
341,535
China
•
17,322
J^t
Established
Imports1/
33-1/38 of
Sept. 20, i960
Total Quota s to March 13* 1961
1,411,231
239,690
42,732
1,441,152
1,179,209
75,807
42,782
21,442
22,747
14,796
12,853
21,442
3,068
3,068
8,135
uba
£
Germany
Ital
y
Total Imports
Sept. 20, I960, to
March 1% 1961
.
6,544
76,329
21.263
21,222
25,443
-7,088
9,937
5,482,509
1,739,435
1,599,886
1*256*438
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.
TREASURY DEPARTMENT
Washington, D. C.
_[! t,
IMMEDIATE RELEASE -_U,
Wednesday, March l£, 1961.
"^*
Preliminary data on imports for cons-umption 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, i960 - March 13, 1961
Country of Origin Established Quota Imports Country of Origin Established Quota
Egypt and the Anglo- Honduras
Egyptian Sudan ........
Peru
British India
China
Mexico
Brazil...
Union of Soviet
Socialist Republics ...
Argentina
Haiti
Ecuador
752
783,816
247,952
2,003 A 8 3
1,370,791
8,883,259
618,723
475*12^
5*203
237
9*333
50,569
8,883,259
618,721
-
Paraguay
Colombia .............. *
Iraq
British East Africa .. .
Netherlands E. Indies . Barbados....
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
_/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 17 I960 - March 13, T96I
Established Quota (Global) - 45,656,420 Lbs.
Staple Length Allocation Imports
1-3/8" or more ~
1-5/32" or more and under
1-3/8" (Tanguis)
l-l/8" or more and -under
1-3/8"
39*590,778
39,590,778
1,500,000
609,648
4,565,642
4,565,642
- 871
124
195
2,240
71*388
21,321
5,377
16,004
689
TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE
Wednesday, March 15, 196l.
D-44
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, 1960~^~March 13, 1961
~
Country of Origin
E£-;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
475,12^
5*203
237
9*333
Imports
50,569
3,883,259
618,721
Country of Origin
Established Quota
Honduras
Paraguay
Colombia
Iraq
British East Africa ...
Netherlands E. Indies .
Barbados
l/Otxher British W. Indies
Nigeria
2/0ther British W. Africa
3/Other French Africa ...
Algeria and Tunisia ...
752
- 871
124
195
2,240
71,388
21,321
5,377
16,oo4
689
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
'3/ Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or more
Imports August 1, I960 - March 13, 1961
Established Quota (Global) - 45,656,420 Lbs.
Staple Length
Allocation
1-3/8^ or more
1-5/32" or more and under
1-3/8" (Tanguis)
1-1/8" or more and under
1-3/8"
39*590,778
Imports
39,590,778
1,500,000
609,648
4,565,642
4,565,642
•vQjF
GOTTON WASTES
"(In pounds)
COTTON CARD STRIPS made from cotton having -a staple-of less than 1-3/16 inches in length, COISBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEt Provided, however, that not more than-33-1/3-percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple- length in the- case- of the following-countries j United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy*
Country of Origin
Established
TOTAL QUOTA
United Kingdom
4,323,457
Canada
....
239,690
France
227,420
British India
69,627
Netherlands . . . . . . . .
68,240
Switzerland .
44,388
Belgium .. 38,559
Japan . . . . . . . . . . . .
341,535
China
17,322
Egypt
8,135
Cuba .
6,544
Germany
76,329
Italy . . . .
.......
21,263
5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.
Total Imports
Sept. 20, I960, to
March 13, 1961
239,690
42,732
21,442
3,068
21,222
1,739,435
Established
33-1/3* of
Total Quota
Imports
l/
Sept. 20, I960
to March 13, 1961
1,441,152
1,179,209
75,807
42,782
22,747
14,796
12,853
21,442
25,443
7,088
1,599,886
3,068
9,937
1,256,438
1 7/r
- 2
Imports
as of
March 4. 196
Commodity
Absolute Quotas
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter)
12 raos. from
Aug. 1, 1960
Rye, rye flour, and rye meal July 1, 1960June 30, 1961
Canada
Other Countries
Butter substitutes, including
butter oil, containing 45% or
more butterfat
Calendar Year 1961
1,709,000
Pound
31,243"
140,733,957
2,872,122
Pound
Pound
122,967,888*
1,200,000
Pound
Quota Filled
18,770,577
2,230,313
711,188
Pound
Pound
Pound
3,583,268*
Quota Filled
Tung Oil Feb. 1, 1951Oct. 31, 1961
Argentina
Paraguay
Other Countries
* Imports through March 13, 1961.
t
f »'A
TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE
Wednesday, March l£, 1961.
D-W
The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to March 4, 1961, inclusive, as follows:
Commodity
'eriod and Quantity
Unit :
Imports
of :
as of
Quantity: March 4, 1961
Tariff-Rate Quotas:
Cream, fresh or sour.......
Calendar Year
1,500,000
Gallon
236
Whole milk, fresh or sour..
Calendar Year
3,000,000
Gallon
17
Cattle, 700 lbs. or more each
(other than dairy cows)....,,
Jan. 1, 1961March 31, 1961
120,000
Head
14,161
Cattle less than 200 lbs. each.
12 mos. from
April 1, 1960
200,000
Head
35,272
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish
Calendar Year
32,600,645
Pound
Tuna fish,
Calendar Year
To be
announced
Pound
7,475,964
White or Irish potatoes
Certified seed
Other
,
12 mos. from
Sept. 15, 1960
114,000,000
36,000,000
Pound
Pound
42,098,000
5,007,468
80,000,000
Pound
1,440
2,779,340
Peanut oil,
12 mos. from
July 1, 1960
Walnuts,
Calendar Year
5,000,000
Pound
Stainless steel table flatware
(table knives, table forks,
table spoons)
,
Nov. 1, 1960Oct. 31, 1961
69,000,000
Pieces
Quota Filled!/
Quota Filled-/
1/ Imports for consumption at the quota rate are limited to 8,150,161 pounds during
the first three months of the calendar year.
2/ Based on preliminary data; subject to adjustment.
(over)
TREAJU.<Y DEPARTMENT
Wa ;ih i ng t on , D. C.
jfriEDIATE RELEASE
=dnesday, March l£, 1961.
D-4S
The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
£ the quota periods to March 4, 1961, inclusive, as follows:
Commodity
Imports
as of
March 4, 1961
Period and Quantity
ariff-Rate Quotas:
ream, fresh or sour . . Calendar Year
1,500,000
hole milk, fresh or sour....... Calendar Year
3,000,000 Gallon
17
attle, 700 lbs. or more each Jan. 1, 1961(other than dairy cows)
March 31, 1961
120,000 Head
14,161
attle less than 200 lbs. each.. 12 mos. from
April 1, 1960
200,000 Head
35,272
ish, fresh or frozen, filleted,
tc., cod, haddock, hake, pol)ck, cusk, and rosef ish.
Calendar Year
236
32,600,645
Pound
To be
announced
Pound
7,475,964
12 mos. from
Sept. 15, I960
14,000,000
36,000,000
Pound
Pound
42,098,000
5,007,468
July 1, 1960
80,000,000
Pound
1,440
5,000,000
Pound
2,779,340
ma fish Calendar Year
lite or Irish potatoes:
Certified seed
>ther
Gallon
Quota Filled!/
ian
ut oil .. 12 mos. from
dnuts Calendar Year
aihless steel table flatware
table knives, table forks,
table spoons)
e
Nov. 1, 1960Oct. 31, 1961
69,000,000
Pieces
Quota Filled!'
Imports for consumption at the quota rate are limited to 8,150,161 pounds during
first three months of the calendar year.
tsed on preliminary data; subject to adjustment,
(over)
- 2 -
mports
as of
March 4. lc
Absolute Ouotas
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter)..,
Rye, rye flour, and rye meal..,
Butter substitutes, including
butter oil, containing 45% or
more butterfat
,
Tung Oil
* Imports through March 13, 1961.
12 mo s. f rom
Aug. 1, 1960
July 1, 1960June 30, 1961
Canada
Other Countries
Calendar Year 1961
Feb. 1, 1951Oct. 31, 1961
Argentina
Paraguay
Other Countries
1,709,000
Pound
140,733,957
2,872,122
Pound
Pound
122,967,!
1,200,000
Pound
Quota Fille
18,770,577
2,230,313
711,188
Pound
Pound
Pound
3,583,268
Quota Fille
31,243
- 3 -
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The biHs are subje
to estate, inheritance, gift or other excise taxes, whether Federal or State, b
are exempt from all taxation now or hereafter imposed on the principal or inte
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority. For purposes of taxation the amount of discount at whi
Treasury bills are originally sold by the United States is considered to be int
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a
of discount at which bills issued hereunder are sold is not considered to accr
until such bills are sold, redeemed or otherwise disposed of, and such bills ar
cluded from consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued hereunder need include in h
income tax return only the difference between the price paid for such bills, wh
on original issue or on subsequent purchase, and the amount actually received e
upon sale or redemption at maturity during the taxable year for which the retu
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2_____»K«(«,ttja»»:<ir?«
1 7Q
decimals, e. g., 99.925. Fractions may not be used.
It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex-
cept for their own account. Tenders will be received without deposit from incorp
rated banks and trust companies and from responsible and recognized dealers in
ment securities. Tenders from others must be accompanied by payment of 2 percent
the face amount of Treasury bills applied for, unless the tenders are accompanie
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal Re-
serve Banks and Branches, following which public announcement will be made by th
Treasury Department of the amount and price range of accepted bids. Those submit
ting tenders will be advised of the acceptance or rejection thereof. The Secreta
of the Treasury expressly reserves the right to accept or reject any or all tend
in whole or in part, and his action in any such respect shall be final. Subject
these reservations, noncompetitive tenders for $200,000 or less for the addition
bills dated December 22, 1960
, ( 92
days remaining until maturity date on
June 25, 1961 ) and noncompetitive tenders for $100,000 or less for the
P»5
182
'
&&£
-day bills without stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competitive bids for the r
tive issues. Settlement for accepted tenders in accordance with the bids must b
made or completed at the Federal Reserve Bank on March 25, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills ma
ing March 25, 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. bave any exea&ti-ik* as such, and
•=-» .*">
y*
I
^
SE5__-_________g
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4:00 P.M., EST,
Wednesday, March 15. 1961
•
m
The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $1,600.000.000
t or thereabouts^ for
cash and in exchange for Treasury bills maturing March 25. 1961
> in the amount
m
of $ 1,601,661,000 , as follows:
92 -day bills (to maturity date) to be issued March 25. 1961 t
"^sT
___f
in the amount of $ 1,100,000,000 , or thereabouts, representing an additional amount of bills dated December 22, 1960 ,
m~^
and to mature
June 25, 1961
, originally issued in the
_-^
182
amount of $500,151,000
, the additional and original bills
2$_b^£
to be freely interchangeable.
.day bills, for $500,000,000 , or thereabouts, to be dated
~"p_£~
fc_2c)
March 25, 1961
pK^E
, and to mature
September 21. 1961
5_3k~
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 Fed.eral Reserve Banks and Branches up to the closing
hour, one-thirty o'clock p.m., Eastern Standard time, Monday. March 20 Iftfil
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
_a___.",i 11. .'_•!__:
WASHINGTON, D.C
IMMEDIATE RELEASE, 4:00 P.M., EST,
Wednesday, March l£, 1961
-^5
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 March 23, 1961,
in the amount of
$1,601,661,000
as follows:
92-day bills (to maturity date) to be issued March 23, 1961,
in the amount of $ 1,100,000,000,
or thereabouts, representing an
additional amount of bills dated December 22, i960, and to
mature June 23, 1961,
originally issued in the amount of
$500,151,000
the additional and original bills to be freely
interchangeable.
I82.„ay bills, for $500,000,000 or thereabouts, to be dated
March 23, 1961 and to mature September 21, 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, March 20, 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.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated December 22,
I960,
( 92 days remaining until maturity date on June 23, 196:
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 March 23, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing March 23, 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
|[HH__«MM«m'Mn3tKi_«»Wffffl^^
W A S H I N G T O N , D.C
HOLD FOR RELEASE - 4:00 P.M.
Wednesday, March 15, 1961
D-H7
ADVANCE REFUNDING OFFER
The U. S. Treasury offers to the holders of four issues of
outstanding Treasury Bonds and Notes which mature from June lf>,
1962, through August 15, 1963, two issues of 3-3/8$ and 3-5/8$
intermediate-term bonds in exchange as of March 15, 1961, on
mutually advantageous terms to the holder and the Treasury.
The Treasury will in this way offer holders of intermediateterm securities maturing within the next 2-1/2 years an opportunity
of remaining invested in new intermediate-term securities in the
six and seven-year maturity range. By means of this advance refunding the Treasury can reduce the volume of outstanding debt to
be refinanced on final maturity during the next 2-1/2 years. In
view of the large volume of other issues in the short-term area,
any reduction of the congested maturity schedule in 1962 and 1963
will be of material advantage in the management of the debt and
will reduce the over-all burden of interest costs.
The offering is made attractive to investors by providing an
immediate increase in interest return5 in consideration of acceptance of a security of somewhat longer maturity. Market yields
on the new issues are at least equal to those on outstanding issues
of comparable maturity on the date of this offering. The investment return to holders for the period of the extension as summarized herein, would appear to compare favorably with prospective
yields that might be obtained on reinvestment at the time when
these four outstanding securities are scheduled to mature. The
transfer of old for new securities will not be treated as a sale
and purchase for tax purposes, thereby avoiding immediate charging
of book losses on the securities being accepted by the Treasury in
exchange for the new issues•
Terms and Conditions of the Advance Refunding Offer
1. To all holders owning $500, or more, of the following outstanding Treasury
bonds s
Remaining term
Amount
Description of bonds
to maturity
outstanding
and notes
Issue date
Maturity date (Yrs. - Mos.) (in billions)
2-1/4$ bonds
2-1/4$ bonds
2-5/8$ notes
2-1/2$ bonds
of
of
of
of
6/15/59-62
June 1, 1945
June 15, 1962
12/15/59-62 Nov. 15, 1945 Dec. 15, 1962
2/15/63
Apr. 15, 1958 Feb. 15, 1963
8/15/63
Dec. 15, 1954 Aug. 15, 1963
1 1 1 - 1
2 -
3
9
1
5
$5.3
3.4
4.0
6.8
••-. O
4_
_ 2 2. New bonds to be issued:
Description
Issue date
Maturity date
1-5/8$ bonds of 1967 March 15, 1961 Nov. 15, 1967
)-3/8$ bonds of 1966 March 15, 1961 Nov. 15, 1966
Interest
payable
Interest starts-1/
March 15, 1961
March 15, 1961
May 15 & Nov. 15
May 15 & Nov. 15
\7 Interest on the bonds and notes surrendered stops on March 15, 196l»
3. Terms of the exchange:
Exchanges will be made on the basis of par for par in multiples of $500,
and with adjustments of accrued interest to March 15, 196l, and payments
to the Treasury as indicated below:
Accrued
Outstanding bonds
and notes
Exchangeable only
for bonds
l/k% bonds 6/15/59-62 )
•JA* bonds 12/15/59-62) 3-5/8$ of Nov. 15, 1967
notes 2/15/63
)
1/2$ bonds 8/15/63
Payment
interest
to
payable to
Treasury
investor
on account
(per $100
of $100 issue
face
price 1/
amount)
$ $0.30
$ -
3-3/8$ of Nov. 15, 1966
$0,556
$0,556
$0,203
'.193
Extension
of
maturity
Irs.-Mos.
5- 5
4-11
4- 9
3-3
To be deducted from amount of accrued interest shown in next column.
4. Limitation on amount of new bonds to be issued:
"While it is not practicable to.estimate the extent of investor acceptance,
the Treasury is placing an outside limit of $5 billion, or thereabouts, on
the aggregate amount of 3-5/8$ bonds of Nov. 15, 1967, and $3 billion, or
thereabouts, on the aggregate amount of 3-3/8$ bonds of Nov. 15, 1966, to
be issued to the public. In the event the limit on either issue is
exceeded, subscriptions to the respective issue will be subject to allotment. In addition, exchange subscriptions not to exceed $250,000,000, in
the aggregate, from Government Investment Accounts to these two issues
will be allotted in full.
5. Books open for subscriptions for the new bonds:
Books will be open for subscriptions from March 20 through March 22,
1961. Subscriptions accompanied by eligible bonds and notes and
placed in the mail by midnight March 22, 196l, addressed to Treasurer,
U. S., Washington 25, D. C , or any Federal Reserve Bank or Branch
will be accepted. The use of registered mail is recommended for
bondholders' protection. The new bonds will be delivered to subscribers on March 30, 196l.
6. Requirements applicable to subscriptions:
Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Office of the Treasurer of the United States, Washington, D.C.
Banking institutions generally may submit subscriptions for account of
customers, provided the names of the customers are set forth in such
subscriptions.
Subscriptions which are subject to allotment from banking institutions
for their own account, Federally-insured savings and loan associations,
States, political subdivisions or instrumentalities thereof, public
pension and retirement and other public funds, international organizations in which the United States holds membership, foreign central
banks and foreign States, Federal Reserve Banks, and Government Investment Accounts will be received without deposit. Subscriptions which
are subject to allotment from all others must be accompanied by deposit
of eligible securities in an amount equal to 10$ of the bonds applied
for.
7. Denominations and other characteristics of new bonds:
$500, $1,000, $5,000, $10,000, $100,000, and $1,000,000 in coupon and
registered forms. They will be acceptable to secure deposits of public
moneys•
8. Nonrecognition of gain or loss for Federal income tax purposes:
Pursuant to the provisions of section 1037(a) of the Internal Revenue
Code of 1954 as added by Public Law 86-346 (approved Sept. 22, 1959)
the Secretary of the Treasury has declared that no gain or loss shall
be recognized for Federal income tax purposes upon the exchange of
the eligible bonds and notes solely for the new 3-5/8$ or 3-3/8$
bonds. For tax purposes, therefore, the investor will carry the new
bonds on his books at the same amount as he is now carrying the eligible
bonds and notes, plus the amount of premium, if any, paid on the new
bonds* Gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption
of the new bonds.
9. Federal estate tax option in new bonds:
The option to redeem the eligible 2-1/4$ bonds of June 15, 1959-62,
and December 15, 1959-62, at par and accrued interest prior to maturity
for the purpose of using the proceeds in payment of Federal estate
taxes (if the bonds were owned by the deceased at the time of his death)
is not applicable to the new 3-5/8$ bonds issued in exchange.
10.
Book value of new bonds to banking institutions:
The Comptroller of the Currency, Board of Governors of the Federal
Reserve System, and the Federal Deposit Insurance Corporation have
indicated to the Treasury that banks under their supervision may
place the new 3-5/8$ and 3-3/8$ bonds received in exchange on their
books at an amount not greater than the amount at which the eligible
bonds and notes surrendered by them are carried on their books, plus
the amount of premium, if any, paid on the new bonds, and that they
will so advise their examiners.
11. Computation of investment return for the extension of maturity:
A holder of the outstanding eligible bonds or notes has the option
of accepting the Treasury's exchange offer or of holding the
eligible bonds or notes to maturity. Consequently, he can compare
his return resulting from exchanging now with the return that he
might obtain by reinvesting the proceeds of the eligible bonds or
notes at maturity.
The return before tax for making the extension now through exchange
will be the coupon rate on the new issue. If a holder of the
eligible bonds or notes does not make the exchange, he would receive
only the respective interest rates to their maturity and would have
to reinvest at that time at a rate equal to that indicated in
section 12 below for the remaining terra of the issue now offered,
in order to equal the return he would receive by accepting the exchange offer. For example, if the 2-1/4$ bonds of June 15, 1959-62,
are exchanged for the new 3-5/8$ 6-year 8-month bonds, the rate for
the entire 6 years and 8 months will be 3-5/8$. If the exchange is
not made, a 2-1/4$ rate will be received until June 1962 requiring
reinvestment of the proceeds of the 2-l/4s at that time at a rate
of at least 3.98$ for the remainder of the 6 years and 8 months,
all at compound interest, to average out to a 3-5/8$ rate for
6 years, 8 months. This minimum reinvestment rate for the extension
period is shown in the table under section 12 and is the investment
return for the extension period if the exchange is made now. The
minimum reinvestment rates for the other issues included in the exchange are also shown in the table under section 12.
-5 12. Investment return on the 3-5/8$ and 3-3/8$ bonds offered in exchange,
to the holders of the eligible bonds and notes:
eible bonds and notes — 2-l/4$ bonds 2-l/4$ bonds 2-5/8$ notes 2-l/2$ bonds
*
June 15,
Dec. 15,
Feb. 15,
Aug. 15,
1959-62
1959-62
1963
1963
merit to Treasury on
:count of $100 issue price •
-
$0.30
/
^___
v
bond offered in exchange —-— November 15, 1967
bond offered in exchange — —— Nov. 15, 1966
A
/
\
>roxircate investment return:
from issue date (Mar. 15, 1961)
to maturity 1/
—
3.75$
for the extension of maturity:!/
Nontaxable holder (or before
3.98
tax)
^
3.75$
__
3.75$
, .
3.63$
4.10
4.08
4.09
4.07
4.06
4.08
4.10
4.12
4.14
4.05
4.07
4.09
4ai
4.13
4.15
4.06
4.08
4.09
4.11
4.13
4.15
Taxable holder; equivalent
rate 3/ if ®ost (book value)
of eligible bond or note
(per $100 face value) is:
|102 4/ - - 4.02 4.02
100
98
96
9^
92
—
90
.
3.96
3.98
4.00
u.02
4.04
U.06
Yield to a nontaxable holder, or before tax. Based on mean of bid and ask prices of
eligible bonds and notes at noon on March 14, 19-1.
For explanation see paragraph 11 above,
Rate of return during extension which, combined with the respective interest rat
until maturity of the eligible bond or note, would provide the same return as the
applicable new bond for its full term after tax (on basis of 52$ tax on ordinary
income and 25$ tax on long-term capital gain at maturity of the new bond). To
obtain approximate equivalent rates between those for book values shown, interpolation
Nay be applied.
Holders of the 2-l/4$ bonds are assumed, to have amortized any premium when purc
to par at first call date in 1959. Holders of the 2-5/8$ notes and 2-1/2$ bonds with
book cost above par are assumed to be amortizing any premium to par at maturity.
186
^r^p"
|o ^
i&£mrw*tm
. # B P B ,fo,ffljfffft
ft&lgaSnf %rf#<mc%i^ mm mm i» direct &-_ ^mmtm* wmmmm
Sales *•**••*****•*•**-* ,Jlff3faf§t
N t Stint
^21,349,200
«* t»
1 Q7
TREASURY DEPARTMENT
___________E__J__&__SE
_. v-> '
3_S_G__U
" • ^ " " " •~~qrn»^Trarcnp~g*roErCTi
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Wednesday, February 15, -i96_-r
1
'
1,
/«i/^y
During J _ _ w _ ^ 1961, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted^.in net sales by the Treasury
Department of
0O0
1 QQ
TREASURY DEPARTMENT
WASHINGTON, D.C.
IMMEDIATE RELEASE,
Thursday, March 16, 1961.
D-48
During February 1961, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted In net sales by the Treasury
Department of $21,349,200.
0O0
QQ
O
w
In connection with this action, representatives of the
State of Alaska have expressed concern over possible expanded
activities of foreign fishing fleets in areas of the high
seas near Alaska.
We understand that the Department of State
has long been aware of the problems which would be posed by
the expansion of foreign fishing activities into new areas
of primary interest to Alaskan fishermen, and is giving
serious consideration to this matter, which involves complex
aspects of conservation and fisheries policy. '
TREASURY DEPARTME
WASHINGTON, D.C.
x
March _#. 1961
FOR IMMEDIATE RELEASE
TREASURY LIFTS IMPORT RESTRICTIONS
ON SOVIET CANNED CRABMEAT
The Treasury Department today announced the removal
by the United States of a prohibition on imports of
Soviet canned crabmeat which has been in effect since
January 27, 1951.
The prohibition was placed in force under Section 307
of the U. S. Tariff Act, which bans imports of goods
produced with convict or forced labor.
The decision to remove the prohibition on imports
of Soviet canned crabmeat is in accordance with U. S. law,
and is based upon the fact that there is no current
evidence that prison or forced labor is still being used
in connection with Soviet canned crabmeat.
A Treasury spokesman said:
"If the removal of this restriction also helps to
promote better relations between the Soviet Union and
the United States, it should be welcomed by the peoples
of both countries.
"This action supports the President's desire for
Improved relations between the Soviet and American
peoples and the often-expressed willingness of the
United States Government to offer the Soviet Union every
opportunity to trade with us in peaceful goods on normal
commercial terms. *V_
^c
D-38"
' 47
. C A C I I D V DEPARTMENT
n 6^ *-> A W I IWI h* l\I
REASURY
1 \
,
-————-,
i
--———^j^w-..^.^—TK^rrrrrr^wg^
WASHINGTON, D.C.
March 20, 1961
FOR IMMEDIATE RELEASE
TREASURY LIFTS IMPORT RESTRICTIONS
ON SOVIET CANNED CRABMEAT
The Treasury Department today announced the removal
by the United States of a prohibition on imports of Soviet
canned crabmeat which has been in effect since January 27
1951.
The prohibition was placed in force under Section 307
of the U. S. Tariff Act, which bans Imports of goods
produced with convict or forced labor.
The decision to remove the prohibition on imports
of Soviet canned crabmeat is in accordance with U.S. law,
and is based upon the fact that there is no current
evidence that prison or forced labor is still being used
in connection with Soviet canned crabmeat.
A Treasury spokesman said:
"If the removal of this restriction also helps to
promote better relations between the Soviet Union and the
United States, it should be welcomed by the peoples of
both countries.
"This action supports the President's desire for
improved relations between the Soviet and American peoples
and the often-expressed willingness of the United States
Government to offer the Soviet Union every opportunity to
trade with us in peaceful goods on normal commercial terms.
"In connection with this action, representatives of
the State of Alaska have expressed concern over possible
expanded activities of foreign fishing fleets in areas
of the high seas near Alaska. We understand that the
Department of State has long been aware of the problems
which would be posed by the expansion of foreign fishing
activities into new areas of primary interest to Alaskan
fishermen, and is giving serious consideration to this
matter, which involves complex aspects of •conservation and
fisheries policy."
71 J 9
0O0
1 OO
E:_t»*5& A. £. ftW'-'^-ftf, Tnooday, Hftrch 21. 1961,
.
w _.
fho Treasury : eparasnt oa&owieot last oroaiag that the toafSoro for two series
treasury bills, ©sto oorioa to bo a& additional issue of the bills dotorf £*fas;bor 22
I960, and tho ethor storioo to bo datocf Korea 83, 196i, which w«ra offorod on larca '
woro opened at the federal Monorvo Baiako oa March 20, foadori were Invitad for
61,100,000,000, ©r thereabouts, of 98~dor bills not for #500,000,000, or th©roab«raii
of l$8~day bills. %%m Entails of tho two sorlos* ar# am follow*t
1ANGE :.f ACC£PT£<>
l§8-d«y treasury blllo
98-day fraaaury bill*
maturing jam 23, 1961
Approi'*'' IqpAir.
Price
Annual tat®'
I i^
tow
averago
99.U26 t.8it6*
99 »fcl8
99.106
appro*. E<juii
prico
96.766
8.301$
2.f78$ 1/
rt.rw
98,751
Annual Rati
t.MW
8.1*765
9.kmy
6? por©ont of tho aaoant of 92~iay bill* bid for at tho low prloo wa* aaoopttg
99 fjoreoist of tho aaount of 168-day blllt bid for at tho low prio© not aoooptad
TCTAL TiWDIBS Affile IQft ARD A C G _ m s Si n a n a ! Rmm%
listriot
Sooton
fork
Fhiladolfliia
Clofolaisd
Blohaoad
Atlanta
Cnlaago
St. ismls
ftiaaaapali*
&*n*aa City
Pallas
Sa~ Frooeiooo
mtm>
DISTRICTSt
Applied for
_____________
#,1*9,660
tr,oi9,ooo
r!,9ii,ooo
1,399,163,000
97,56li,000
3§,837,000
11,014,000
t6^95,ooo
238,59^,000
28,379,000
80, Iff 1,000
35,509,000
17,770,000
76,660,000
611,613,000
10,758,000
38,237,000
11,016,000
95,131,000
6Jt3,09©,000
7,01*7,000
18,999,000
18,563,000
18,230,000
7l»,O*7»00O
5,li67,000
h,390,000
14,197,000
5,859,000
I
9i,*S7,69fc,ooo
m9&m9om
27,379,000
17,ktfe,000
3h,8«9,O0O
17,810,©O0
rrn"
396,870,000
8,0*7,000
11,399,000
8,563,000
11,530,009
3fc,566,OO0
i»,967,0OO
8,310,000
12,99a,000
5,839,000
BtSg_ii_tt §500,087,000;
11,100,066,000 0 / 11,033,761,000
n mm
Xneladaa i855»83®,000 n*n*oap«*itiv* t©odors aocoptod at tho airoraf© price
t of 99.
IttBlndo* f59,(&7,000 ooaeoffpotitifo tosdora acooptoci at to© av«ra^©£,|pi*© of 96.7
On a ooapaa i.M.mm of tho oa»® loagth aocf, for tho aa**© amount lovoatod, tho ratoio
tha** M i l * mould proviso yl*ld* of 8.38#, for tho 98-day bill*, ant 8.SM. tw
188-day bills. Xatoroot rata© on billo aro quoit** la torao of bank dlatowfl* *i
tho roturn r*X*t*d to tho f*«* aaouat of tho billo payabl© at maturity rather t
tho mmrfc liwoatod an* th*ir lon«th in aotoal noMbor of dayo rolatod to a 3^0yoar. in o©_tra«t, yields ©a oorilfieato®, notoo, and bonds aro ooaipotoi in it
of intwrost on tho apo^iat inveatod, and rolato tho w^abor of oOja rouialiiiBl ia
ifttomfit panMOBt poriod to tho attoal m » b o r of imym in tho porioO, *%th 8«wi««
«O£if*0tiao*liig if m®m thas «ne c©up©» porioO1 ia inoolvad.
h
T
TREASURY DEPART
A
r% o
WASHINGTON, D.C.
RELEASE A. M. NEWSPAPERS, Tuesday, March 21, 1961.
D-50
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 December 22,
i960, and the other series to be dated March 23, l°6l, which were offered on March 15,
were opened at the Federal Reserve Banks on March 20. Tenders were invited for
$1,100,000,000, or thereabouts, of 92-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:
High
Low
Average
92-day Treasury bills
maturing June 23, 196l
Approx. Equiv,
Price
Annual Rate
99.1*26
2.21*6$
99.1*12
99.1*18
2.301$
2.278$ 1/
182-day Treasury bills
maturing September 21. 196l
~*~~"~~"
Approx. Equiv.
Price
Annual Rate
98.768
98.71*8
98.751
2.1*37$
2.1*76$
2.1*71$ 1/
67 percent of the amount of 92-day bills bid for at the low price was accepted
99 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;
Applied For
Accepted
District
Accepted
Applied For
Boston
i
1*,952,000 $ !*,302,000
$
37,679,000 $
27,019,000
New York
81*3,090,000
386,870,000
1,399,263,000
612,613,000
Philadelphia
7,01*7,000
2,01*7,000
27,561*, 000
10,752,000
Cleveland
22,999,000
11,399,000
38,237,000
38,237,000
Richmond
12,583,000
2,583,000
11,016,000
11,016,000
Atlanta
12,230,000
11,530,000
26,595,000
25,131,000
Chicago
7l*,027,000
3l*,566,000
238,598,000
202,628,000
St. Louis
5,1*67,000
1*,967,000
28,379,000
27,379,000
Minneapolis
1*,390,000
2,390,000
20,1*21*, 000
17,l*2i*,000
Kansas City
ll*,197,000
12,99l*,000
35,509,000
3l*,8l*9,000
Dallas
5,259,000
5,239,000
17,770,000
17,210,000
San Francisco
27,51*0,000
21,11*0,000
76,860,000
75,830,000
TOTALS
|l,957,89l*, 000 $1,100,088,000 a/ $1,033,781,000 $500,027,000 b/
\J Includes $255,239,000 noncompetitive tenders accepted at the average price of 99.1*18
3/ Includes $59,1*1*7,000 noncompetitive tenders accepted at the average price of 98.751
[/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.32$, for the 92-day bills, and 2.5U$, 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
-*»—_^.....,4-t — ,
-t-p -rt-*. +,v,»r> 0 ne coupon period is involved.
ia A
'
- _.
March 21, 1961
FOR IMMEDIATE RELEASE
DILLON URGES BROADER JOB OPPORTUNITIES
IN TREASURY DEPARTMENT
Treasury Secretary Douglas Dillon yesterday called upon the
Department's employment officers to broaden job opportunities,
particularly at the higher grades, for all applicants and
employees, regardless of race, color, religion, or national
origin.
The Secretary told a meeting of employment officers from
Washington and Treasury field offices throughout the country
that the Department's recent record on actual discrimination was,
on the whole, not a bad one. However, he said there is a need to
encourage by positive measures equal opportunities for all qualifie
persons to make maximum contributions to the Department's operation
In this connection he stressed the need for broader recruitment
among minority groups and fairer promotion policies within the
various Bureaus.
Frank Reeves, Special Assistant to the President, told the
meeting that the President expects all Federal agencies to enforce
a strict policy of non-discrimination in hiring, assigning, and
promoting government workers. He said that the President's
Executive Order establishing a Committee on Equal Employment Opportunity under the Chairmanship of Vice-President Johnson goes far
beyond mere policing against discrimination. The President's
order, he emphasized, is intended to produce affirmative action
by executive departments and agencies in carrying out a national
policy of non-discrimination within the executive branch of the
Government.
Mr. Reeves complimented the Treasury Department on the speed
with which it has acted in supporting the President's policy for
a more active program to spread employment opportunities on a
broader basis.
Yesterday's meeting was the first in a series scheduled by
Robert A. Wallace, Special Assistant to the Secretary, who has
been designated Treasury's Employment Policy Officer to accelerate
the Department's program of broader employment opportunities
among minority groups. Further meeting's are being held today.
0O0
D-51
TREASURY DEPARTMENT
(•jpmffiBM'AMll^^^^^
VVASHINGTON, D.C.
March 21, 1961
FOR IMMEDIATE RELEASE
DILLON URGES BROADER JOB OPPORTUNITIES
IN TREASURY DEPARTMENT
Treasury Secretary Douglas Dillon yesterday called upon the
Department's employment officers to broaden job opportunities,
particularly at the higher grades, for all applicants and
employees, regardless of race, color, religion, or national
origin.
The Secretary told a meeting of employment officers from
Washington and Treasury field offices throughout the country
that the Department's recent record on actual discrimination was,
on the whole, not a bad one. However, he said there Is a need to
encourage by positive measures equal opportunities for all qualified
persons to make maximum contributions to the Department's operations,
In this connection he stressed the need for broader recruitment
among minority groups and fairer promotion policies within the
various Bureaus.
Frank Reeves, Special Assistant to the President, told the
meeting that the President expects all Federal agencies to enforce
a strict policy of non-discrimination in hiring, assigning, and
promoting government workers. He said that the President's
Executive Order establishing a Committee on Equal Employment Opportunity under the Chairmanship of Vice-President Johnson goes far
beyond mere policing against discrimination. The President's
order, he emphasized, is intended to produce affirmative action
by executive departments and agencies in carrying out a national
policy of non-discrimination within the executive branch of the
Government.
Mr. Reeves complimented the Treasury Department on the speed
with which it has acted in supporting the President's policy for
a more active program to spread employment opportunities on a
broader basis.
Yesterday's meeting was the first in a series scheduled by
Robert A. Wallace, Special Assistant to the Secretary, who has
been designated Treasury's Employment Policy Officer to accelerate
the Department's program of broader employment opportunities
among minority groups. Further meeting's
are being held today.
0O0
- 5Nations meetings. Most important, we can seek to increase the
sense of harmony among nations, particularly between the older
industralized states and the younger emerging nations of Asia
and Africa.
In these ways, we can seek solutions to international problems
before they become conflicts. It takes great statesmanship to
solve a world crisis. But it is a sign of greater, if sometimes
lesser-known statesmanship, to prevent the crisis from developing.
Never before has mankind been confronted by such grave dangers
nor by such magnificent opportunities. In the same hand we hold
the power of death and destruction and the power of life and
progress. We Americans have a profound conviction that mankind will
choose the pathway of life. In this conviction, we must dedicate
ourselves anew to the principles of the United Nations Charter and
to the pursuit of peace, freedom, and prosperity for all the peoples
of the earth. Our consciences as Americans and as members of the
human race demand no less.
r\r\r\
- 4Each time the world organization takes on a new and bigger tas
skeptics wonder if it can survive the test. But it has grown stron
from adversity. Today it is meeting the test of the Congo, where
there is a United Nations force of approximately twenty thousand
troops and several hundred administrators, paid for by a United Nat
budget of some $135 million.
Tne development of the operating capacity of the United Nation
is perhaps the most striking aspect of the organization since its
inception. But there is considerably more to the United Nations.
It is also a facility for the practice of multilateral diplomacy.
The complex world of today presents us with issues which involve
many different peoples. Hence, multilateral negotiations are
required to supplement bilateral diplomacy. They, in turn, require
a place and an atmosphere that are suitable. The place should have
corridors as well as council chambers, because some of the most
important developments in international arrangements come, not from
formal meetings and agreements, but from informal, unofficial understandings and exchanges of views. Indeed the very presence in New
York for protracted periods of time of leading statesmen is a real
if intangible force in bridging gaps of misunderstanding between
ourselves and the world around us.
This bodes well for the present and for the future. It is a
happy development in the current struggle between freedom and
totalitarianism that statesmen from all continents and all sections
of the world desire to mingle their voices in a cosmopolitan chorus
demanding peace.
It is our duty to strengthen and to maintain this great
experiment in international collaboration, particularly in these
days when it is subject to heavy attack and severe testing. It is
valuable as a unifying factor of free states against totalitarian
assaults or infiltrations which challenge their independence and
security. However, the United Nations should not be used as a
means of extending the Cold War but, rather, as a means of ending
it. The world organization is needed to preserve national ways of
life and the ability of individual nations to choose how they should
live. But it is not a device to hold back the hand of time or to
maintain the status quo. On the contrary, change is often good
and desirable, and the United Nations should serve as the framework
of change and progress throughout the world. Peoples are best
cemented together, not by mutual fear, but by mutual hope.
Finally, there are contained within the framework of the
United Nations many opportunities to develop what may be called
"quiet diplomacy", free from the shrill urgencies of the crisis
and the headline. We need to cultivate these opportunities, and
we will be better enabled to do so as the world organization grows
bothglare
more
responsible
and
more
responsive
to world
needs.
Wefrom
can
perhaps
the
doof
this
publicity
best in
which
many
cases
sometimes
by operating
distorts
formal
quietly
United
away
•I ij 'j
- 3Only in the United Nations can a small country participate
fully in deliberations of international developments. Without
the United Nations, it is not likely that small African states
would have much say in decisions that will not only shape the
future of Africa, but of the entire world. Small or emerging
nations desperately need the United Nations for their security
and as a sounding board for their hopes, fears, and aspirations.
President Kennedy had this idea very much in mind when he
called in his State of the Union Message on "the many smaller
nations of the world to join with us in strengthening this
Organization, which is far more essential to their security than
it is to ours — the only body in the world where no nation
need be powerful to be secure, where every Nation has an equal
voice, and where any nation can exert influence, not according
to the strength of its armies, but according to the strength of
its ideas."
What, then, is this organization which has grown and
developed in ways not foreseen by those who wrote its Charter
in San Francisco fifteen years ago?
It is, first of all — and I say this without apology, a
debating forum. This characteristic causes some United
Nations supporters to become impatient and to assume that the
United Nations because it is often long-winded and, on
occasion, even unproductive, is also ineffective.
But free, thoughtful debate is essential on such immense
issues as the rights of man, the ways of seeking peace, the need
for economic advancement and spiritual growth, and the importance
of justice with freedom. These topics must be endlessly explored
and debated according to the customs of free Parliaments if humanity
is to move forward out of the shadows which becloud this uneasy
world. Indeed, if the totalitarian spokesmen through their contacts with the free world in the forum of the United Nations learn
nothing more than the rules and procedures of a democratically conducted debate, perhaps a small dent will have been knocked into the
theoryThe
of United
the autocratic
state
dent which— one
day may operation
bring
Nations is
also—ana operation
a limited
about
repercussions
in
the
proceedings
of
monolithic
totalitarianism;
it is true, but a crucial one. The United Nations has demonstrated
that an international organization can mobilize people and resources
for economic development — that it can supervise the administration
of dependent areas -- that it can whip together a military force to
repel aggression — and that it can mobilize security forces and
civilian administrators to bring about a modicum of order and securi
where there might otherwise be civil war and communal rioting.
i QQ
«i_, \J Ntf'
- 2 The United Nations has amassed great support around the world
in the fifteen years of its life — although often for different
reasons. This is at once a tribute to the many-sidedness of the
world organization, which plays a variety of roles in various
parts of the world. It is also a tribute to the capacity of the
United Nations to respond to successively different demands
throughout its existence.
The world has moved onward — but unfortunately, not always
upward — since 1945* when the United Nations was a fledgling
hope of barely fifty members. The United Nations has also altered,
both in its composition and in its functions. It was originally
conceived as an organization dependent for action upon agreement
between the Permanent Powers — notably the United States and the
Soviet Union. In those days, a majority in the General Assembly
could be obtained from the votes of Western Europe and Latin
America.
But the strains of international events demanded that the
organization either grow or simply wither away — discarded, like
its predecessor, the League of Nations. The United Nations did
grow. It has now reached a total of 99 members, with several
more almost certain to join in the next few years. A majority can
now be obtained from the combined states of Asia and Africa. The
functions of the organization have also expanded to meet new
needs, as more and more problems affecting its membership and the
world as a whole have been thrown into the lap of the United Nations
Throughout these changes and developments, the United Nations
concept has retained the allegiance of the overwhelming majority
of the people of the United States.
President Kennedy spoke for all of us when he said in his
Inaugural Address that the United Nations is "our last best hope
in an age where the instruments of war have far outpaced the
instruments of peace."
Four months earlier, former President Eisenhower told the
General Assembly that the United Nations "has accomplished what
no nation singly or any limited group of nations could have
accomplished
to forego the bonds and build the structure
of a true world community."
Important as the United Nations is to us, it is of perhaps
greater importance to the new and emerging countries. To them,
it is the symbol of nationhood. Membership in the world
organization has become tangible evidence of their newly-won
independence.
TREASURY DEPARTMENT
Washington
HOLD FOR RELEASE ON DELIVERY
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
ANNUAL DINNER OF THE UNITED NATIONS ASSOCIATION
OF MARYLAND, HOTEL EMERSON, BALTIMORE, MARYLAND
r
EDNESDAY, MARCH 22, 1961, 7:30 P.M.
"The^United Nations in a Tim@„of Trans it iQ_p&U»,
It is a great pleasure for me to meet with the members of
the United Nations Association of Maryland. For it is through the
efforts of such organizations as yours that the message of the
United Nations reaches the American public. Public understanding
and support of the United Nations are, as you well know, fundamental
to our country's fulfillment of its international responsibilities
and objectives. We in Government are, therefore, deeply
appreciative of the splendid work you are doing to help achieve
this essential end.
Two decades ago, the idea of an organized world community
seemed to many people to be no more than an idle dream. Some
felt that such an organization was wholly impractical. Others
feared that a successful world organization would impair the
national sovereignties of member nations. Still others insisted
that world affairs should be managed by a few of the great powers
and that smaller nations should be compelled to follow their
bidding.
Many obstacles were encountered in the creation of the United
Nations. There have been further obstacles to its development
and growth. But most of these obstacles have been surmounted.
Today, the United Nations is one of the most vital realities in the
entire sphere of international relations. We Americans can take
justifiable pride in the role our country has played in helping to
build and to preserve the United Nations system.
By a great many standards, the United States is classified as
a "great power". However, throughout our history the American
people have been devoted to the rights of small nations — the
right to independence, the right to survive, the right to grow,
and the right to pursue material and spiritual well-being for their
peoples
within a framework of free institutions of their own making
•n_"9
These
rights
been achieved
framework
of have
the United
Nations.— as never before — within the
TREASURY DEPARTMENT
Washington
HOLD FOR RELEASE OH DELIVERY
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
ANNUAL DINNER OF THE UNITED NATIONS ASSOCIATION
OF MARYLAND, HOTEL EMERSON, BALTIMORE, MARYLAND
WEDNESDAY, MARCH 22, 1961, 7:30 P.M.
'The United Nations in a Time of Transition"
It is a great pleasure for me to meet with the members of
the United Nations Association of Maryland. For it is through the
efforts of such organizations as yours that the message of the
United Nations reaches the American public. Public understanding
and support of the United Nations are, as you well know, fundamental
to our country's fulfillment of its international responsibilities
and objectives. We in Government are, therefore, deeply
appreciative of the splendid work you are doing to help achieve
this essential end.
Two decades ago, the idea of an organized world community
seemed to many people to be no more than an idle dream. Some
felt that such an organization was wholly impractical. Others
feared that a successful world organization would impair the
national sovereignties of member nations. Still others insisted
that world affairs should be managed by a few of the great powers
and that smaller nations should be compelled to follow their
bidding.
Many obstacles were encountered in the creation of the United
Nations. There have been further obstacles to its development
and growth. But most of these obstacles have been surmounted.
Today, the United Nations is one of the most vital realities In the
entire sphere of international relations. We Americans can take
justifiable pride in the role our country has played in helping to
build and to preserve the United Nations system.
By a great many standards, the United States Is classified as
a "great power". However, throughout our history the-American
people have been devoted to the rights of small nations -- the
right to Independence, the right to survive, the right to grow,
and the right to pursue material and spiritual well-being for their
peoples within a framework of free Institutions of their own making,
D-52 rights have been achieved « as never before — within the
These
framework of the United Nations.
- 2-
2G2
The United Nations has amassed great support around the world
in the fifteen years of its life — although often for different
reasons. This Is at once a tribute to the many-sidedness of the
world organization, which plays a variety of roles In various
parts of the world. It is also a tribute to the capacity of i,ne
United Nations to respond to successively different*demands
throughout its existence.
The world has moved onward -~ but unfortunately, not always
upward — since 19^5, when the United Nations was a fledgling
hope of barely fifty members. The United Nations has also altered,
both in its composition and in its functions. It was originally
conceived as an organization dependent for action upon agreement
between the Permanent-Powers — notably the United States .and the
Soviet Union. In those days, a majority in the General Assembly
could be obtained from the votes of Western Europe and Latin
America.
\
V But the strains of international events demanded that the
organization either grow or simply wither away -~ discarded, like
its predecessor, the League of Nations. The United Nations did
grow. It has now reached a total of 99 members, with several
more almost certain to join in. the next few years. A majority can
now be obtained from the(.Ncombined states of Asia and Africa. The
functions of the organization have also expanded to meet new
needs,, as more and more problems affecting its membership and the
world as a whole have been thrown Into the lap of the United Nations
Throughout these changes and developments, the United Nations
concept has retained the allegiance of the overwhelming majority
of the people of the United States.
President Kennedy spoke for all of us when he said in his
Inaugural Address that the United Nations is "our last best hope
in an age where the instruments of war have far outpaced the
instruments of peace."
Four months earlier, former President Eisenhower told the
General Assembly that the United Nations "has accomplished what
no nation singly or any limited group of nations could have
accomplished ..... to forego the bonds and build the structure
of a true world community."
Important as the United Rations is to us, it is of perhaps
greater importance to the new' and emerging countries. * To them,
it is the symbol of nationhood. Membership in the world
organization has become tangible evidence of their newly-won
independence.
9°Q
»-- w .<_•
~ J -
Only in the United Nations can a small country participate
fully in deliberations of international developments. Without
the United Nations, it is not likely that small African states
would have much say in decisions that will not only shape thefuture of Africa, but of the entire world. Small or emerging
nations desperately need the United Nations for their security
and as a sounding board for their hopes, fears, and aspirations.
President Kennedy had this idea very much in mind when he
called in his State of the Union Message on "the many smaller
nations of the world to join with us in strengthening this
Organization, which is far more essential to their security than
It is to ours — the only body in the world where.no nation
need be powerful to be secure, where every Nation has an equal
voice, and where any nation can exert influence, not according
to the strength of its armies, but according to the strength of
its ideas."
What, then, is this organization which has grown and
developed in ways not foreseen by those who wrote its Charterin San Francisco fifteen years ago?
It is, first of all — and I say this without apology, a
debating forum. This characteristic causes some United
Nations supporters to become Impatient and to assume that the
United Nations because it is often long-winded and, on
occasion, even unproductive, is also ineffective.
But free, thoughtful debate is essential on such immense
issues as the rights of man, the ways of seeking peace, the need
for economic advancement and spiritual growth, and the importance
of justice with freedom. These topics must be endlessly explored
and debated according to the customs of free Parliaments if humanity
is to move forward out of the shadows which becloud this uneasy
world. Indeed, if the totalitarian spokesmen through their contacts with the free world in the forum of the United Nations learn
nothing more than the rules and procedures of a democratically conducted debate, perhaps a small dent will have been knocked Into the
theory of the autocratic state — a dent which one day may bring
aboutThe
repercussions
in the
of monolithic
totalitarianisms.
United Nations
is proceedings
also an operation
— a limited
operation
it is true/ but a crucial one. The United Nations has demonstrated
that an international organization can mobilize people and resources
for economic development -- that it can supervise the administration
of dependent areas — that it can whip together a military force to
repel aggression -- and that it can mobilize security forces and
civilian°administrators to bring about a modicum of order and security
where there might otherwise be civil war and communal rioting.
- •'•! -
on A
Each time the world organization takes on a new and bl?:rer fca..;k
skeptics wonder if it can survive the test. But it has grown stronger
from adversity. Today it is meeting the rest of the Congo, where
there is a United Nations force of approximately twenty thousand
troops and several hundred administrators, paid for by a United Nations
budget of some $135 million.
The development of the operating capacity of the United Nations
is perhaps the most striking aspect of the organization since its
inception. But there is considerably more to the United Nations.
It is also a facility for the practice of multilateral diplomacy.
The complex world of today presents us with issues which involve
many different peoples. Hence, multilateral negotiations are
required to supplement bilateral diplomacy. They, in turn, require
a place and an atmosphere that are suitable. The place should have
corridors as well as council chambers, because some of the most
important developments in international arrangements come, not from
formal meetings and agreements, but from informal, unofficial understandings and exchanges of views. Indeed the very presence in New
York for protracted periods of time of leading statesmen is a real
if intangible force in bridging gaps of misunderstanding between
ourselves and the world around us.
This bodes well for the present and for the future. It is a
happy development in the current struggle between freedom and
totalitarianism that statesmen from all continents and all sections
of the world desire to mingle their voices in a cosmopolitan chorus
demanding peace.
It is our duty to strengthen and to maintain this great
experiment in international collaboration, particularly in these
days v/hen it is subject to heavy attack and severe testing. It is
valuable as a unifying factor of free states against totalitarian
assaults or infiltrations which challenge their independence and
security. However, the United Nations should not be used as a
means of extending the Cold War but, rather, as a means of ending
it. The world organization is needed to preserve national ways of
ife and the ability of individual nations to choose how they should
ive. But it is not a device to hold back the hand of time or to
maintain the status quo. On the contrary, change is often good
and desirable, and the United Nations should serve as the framework
of change and progress throughout the world. Peoples are best
cemented together, not by mutual fear, but by mutual hope.
Finally, there are contained within the framework of the
United Nations many opportunities to develop what may be called
"quiet diplomacy", free from the shrill urgencies of the crisis
and the headline. We need to cultivate these opportunities, and
we will be better enabled to do so as the world organization grows
both more responsible and more responsive to world needs. We car:
perhaps do this best in many cases by operating quietly away from
the glare of publicity which sometimes distorts formal United
- 5 -
Nations meetings. Most important, we can seek to increase the
sense of harmony among nations, particularly between the older
industralized states and the younger emerging nations of Asia
and Africa.
In these ways, we can seek solutions to international problems
before they become conflicts. It takes great statesmanship to
solve a world crisis. But it Is a sign of greater, if sometimes
lesser-known statesmanship, to prevent the crisis from developing.
Never before has mankind been confronted by such grave dangers -_nor by such magnificent opportunities. In the same hand,we hold
the power of death and destruction and the power of life and
progress. We Americans have a profound conviction that mankind will
choose the pathway of life. In this conviction, we must,dedicate
ourselves anew to the principles of .the United Nations Charter and
to the pursuit of peace, freedom, and prosperity for all the peoples
of the earth. Our consciences as Americans and as members of the
human race demand no less.
0O0
- 3 -
from the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code of 1954. The bills are 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 intere
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amoun
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 e
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, wheth
on original issue or on subsequent purchase, and the amount actually received eith
upon sale or redemption at maturity during the taxable year for which the return i
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
-
Ccj:
decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
made on the printed forms and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorpo-
rated banks and trust companies and from responsible and recognized dealers in inve
raent 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 b
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 December 29, 1960 j ( 91 days remaining until maturity date on
p££
June 29, 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 respe
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on March 30, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills maturing March 50, 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 exessstioik-, as such, and los
r\ f* Q
/
V.
_>
BK_30Gag4MMiyiKM
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4tGG-Pi__rr #/ / <— S
Wednesday, March 22, 1361
•
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
P5
cash and in exchange for Treasury bills maturing
March 30, 1961
, in the amount
p£
of $ 1,500,859,000 , as follows:
m
91 -day bills (to maturity date) to be issued
March 50, 1961
in the amount of $ 1,100,000,000 , or thereabouts, represent-
>
m —
ing an additional amount of bills dated December 29. 1960 i
and to mature June 29, 1961 , originally issued in the
m
amount of $ 500,655,000
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 500,000,000 y or thereabouts, to be dated
March 50, 1961 , and to mature September 28, 19m
The bills of both series will be Issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face am
will be payable without interest. They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matu
value).
Tenders will be received at Federal Reserve Banks and Branches up to the closin
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, March 27, 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 th
price offered must be expressed on the basis of 100, with not more than three
L, w -»
TREASURY DEPARTMENT
WASHINGTON. D.C.
E~jI__?~S HELEASffi,
vrndno-clay, I-Zarch 23* 19&U
'
' ... ,
i
.
• -i
•
in
m
i>
in
i
ii
i n mrr-riT
'n
i iri—i1
i ir—1
D-53
'
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 .Earcft 30, 19&L, in the amount of
$1,500,859*000, as follows?
91-day bills (to maturity date) to be issued March 30, 19^1,
in the amount of $1,100,000,000, 0 r thereabouts,^ representing an
additional amount of bills dated December 29*19$0, and to
mature June 29* 19&L*
originally issued in the amount of
$500,633,000, the additional and original bills to be freely
interchangeable.
183-day bills, for $500,000,000, or thereabouts, to be dated
mvotx 30, 1961, and to mature September 28, 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 Nissued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value) .
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, March 27* 19^1 • - 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 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 B&nks or Branches on application therefor.
Others than banking Institutions will not be permitted to submit
tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
- 2 4-u ^Immediately after the closing hour, tenders will be opened at
the federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
Boconbar 29, I960,(91 days remaining until maturity date on
June 29^ 1951)
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 Ilarch 30, I9S1,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing March 30, 19Sl.
Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation now or hereafter imposed on
the principal or interest thereof by any State, or any of the
possessions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454 (b) and 1221 (5) of the Internal
Revenue Code of 1954 the amount of discount at which bills issued
hereunder are sold Is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need Include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or 0O0
loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe the terms of the Treasury bills and govern the conditions
of theirReserve
issue. Bank
Copies
of the circular may be obtained from any
Federal
or Branch.
0
i*
- 2 Following his service with the Treasury, Mr. Nichols joined
the Renegotiation Board, where he served as General Counsel
until April 1954, when he left the Government to enter private law
practice.
Born in Boston, Massachusetts, on August 11, 1907* Mr. Nichols
earned his A.B. degree from Harvard College and his LL.B. degree
from Harvard Law School. After graduation in 1932, he practiced
law in Boston for six years before entering the Government with
the Justice Department.
He served in the Lands Division of that
Department until January 1942, when he transferred to the
War Production Board. uH/w->^-
(A^ S*-+^SJ~^CL CK^>
<*-
<TYV>-<^VJA-<<^
From December 1943 to February 1946, Mr. Nichols was on
active duty as an officer in the U. S. Navy.
The Bureau of Customs, under the direction of the Commissioner,
administers powers and duties vested in the Secretary of the
Treasury pertaining to the importation and exportation of
merchandise. The principal functions are the assessment and
collection of import duties, and the prevention of smuggling.
oOo
^
FOR IMMEDIATE RELEASE
DILLON APPOINTS NEW COMMISSIONER OF CUSTOMS
Philip Nichols, Jr., Washington attorney who ten years ago
helped simplify U.S. Customs regulations,
*-* Commissioner of Customs by Treasury Secretary Douglas Dillon^AJ0 JW+
Mr. Nichols has been a member of the law firm of
Butler, Koehler and Tausig since 1957. Ho wao appointed and
4^ok~*he*~oatrr^ofn^^
c er_3iiiQiiy-^hj__L^a£i^er^oon ^%H;iie^Tre a s ury Btr±±t±ing.
Mr. Nichols succeeds Ralph Kelly, who resigned last
January 20.
Mr. Nichols was with the Treasury from December 1946 to
December 1951* in various legal positions. For three years, he
was an Assistant General Counsel for Customs and Narcotics.
Mr. Nichols also served as chairman of the Committee which drafted
legislation to simplify Customs procedures
TREASURY DEPARTMENT
WASHINGTON, D.C.
March 23* 196l
FOR IMMEDIATE RELEASE
DILLON APPOINTS NEW COMMISSIONER OF CUSTOMS
Philip Nichols, Jr., Washington attorney who ten years ago
helped simplify U. S. Customs regulations, will be sworn In
tomorrow as Commissioner of Customs by Treasury Secretary
Douglas Dillon.
Mr. Nichols has been a member of the law firm of Butler,
Koehler and Tausig since 1957*
Mr. Nichols succeeds Ralph Kelly, who resigned last
January 20.
Mr. Nichols was with the Treasury from December 1946 to
December 1951* in various legal positions. For three years, he
was an Assistant General Counsel for Customs and Narcotics.
Mr. Nichols also served as chairman of the Committee which drafted
legislation to simplify Customs procedures.
Following his service with the Treasury, Mr. Nichols joined
the Renegotiation Board, where he served as General Counsel until
April 1954, when he left the Government to enter private law
practice.
Born in Boston, Massachusetts, on August 11, 1907* Mr. Nichols
earned his A.B. degree from Harvard College and his LL.B. degree
from Harvard Law School. After graduation in 1932, he practiced
law in Boston for six years before entering the Government with
the Justice Department. He served in the Lands Division of that
Department until January 1942, when he transferred to the
War Production Board, where he served as a member of the Office
of General Counsel.
From December 1943 to February 1946, Mr. Nichols was on active
duty as an officer in the U. S. Navy.
The Bureau of Customs, under the direction of the Commissioner,
administers powers and duties vested in the Secretary of the
Treasury pertaining to the importation and exportation of
merchandise. The principal functions are the assessment and
collection of import duties, and the prevention of smuggling.
0O0
D-54
Treasury Secretary Douglas Dillon s«rd that.Mr. J. Dewey
"TO
Daane will continue in his present capacity as Assistant to the
Secretary. HrXka^t
^ 3 * &&ef 4cd ~t1r\\& Cl&$ /^/> **tfff.
Mr. Daane also serves as the principal advisor to Under
Secretary for Monetary Affairs, Robert V. Roosa, in all aspects
of his responsibilities.
Mr. Daane has served in his present
capacity since July 18, 1960.
On leave from the Federal Reserve Bank of Minneapolis
where he holds the position of Vice President and Economic
Advisor, Mr. Daane was previously associated with the Federal
Reserve Bank of Richmond.
His principal duties have included
economic research and analysis in the monetary field, and in
recent years he served as an associate economist of the Federal
Open Market Committee.
oOo
TREASURY DEPARTMENT
214
WASHINGTON, D.C
March 23, 19^1
FOR IMMEDIATE RELEASE
DAANE TO CONTINUE AS ASSISTANT TO THE SECRETARY
Treasury Secretary Douglas Dillon announced today
that he has asked Mr. J. Dewey Daane to continue in his
present capacity as Assistant to the Secretary.
Mr. Daane
has accepted this assignment.
Mr. Daane also serves as the principal advisor to
Under Secretary for Monetary Affairs, Robert V. Roosa,
in all aspects of his responsibilities. Mr. Daane has
served in his present capacity since July 18, i960.
On leave from the Federal Reserve Bank of Minneapolis
where he holds the position of Vice President and Economic
Advisor, Mr. Daane was previously associated with the
Federal Reserve Bank of Richmond.
His principal duties
have included economic research and analysis in the
monetary field, and in recent years he served as an
associate economist of the Federal Open Market Committee.
0O0
D-55
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,
loss from the sale or other disposition of Treasury bills does not have any sp
treatment, as such, under the Internal Revenue Code of 1954. The bills are sub
to estate, inheritance, gift or other excise taxes, whether Federal or State,
are exempt from all taxation now or hereafter imposed on the principal or inte
thereof by any State, or any of the possessions of the United States, or by an
local taxing authority. For purposes of taxation the amount of discount at whi
Treasury bills are originally sold by the United States is considered to be in
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the a
of discount at which bills issued hereunder are sold is not considered to acc
such bills are sold, redeemed or otherwise disposed of, and such bills are exc
from consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his inc
tax return only the difference between the price paid for such bills, whether
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 retu
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies o
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2-
pic
ft— — .
W
• *;«:»• t:o>if :t.
on the printed forms and forwarded in the special envelopes which will be supplied
by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except
for their own account. Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized dealers in investment
securities. Tenders from others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
All bidders are required to agree not to purchase or to sell, or to make any
agreements with respect to the purchase or sale or other disposition of any bills
of this issue, until after one-thirty o'clock p.m., Eastern Standard time, Tuesday,
"~3p_5$
March 2®, 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 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 $ 500,000 or less without stated
"133
price from any one bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids. Payment of accepted tenders at the prices
offered must be made or completed at the Federal Reserve Bank in cash or other imme
diately available funds on April 5, 1961 , provided, however, any qualified
depositary will be permitted to make payment by credit in its Treasury tax and loan
not more than 50 percent of the amount of
account for/Treasury bills allotted to it for itself and its customers up to any
amount for which it shall be qualified in excess of existing deposits when so noti
fied by the Federal Reserve Bank of its District.
> M » « • <•« \> •:« cn>:«
_1 • ;
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4&JQQ R
^0-5^
j:w;**:*w,r#wt3;i:HYK*:*i:*H;ftt
Thursday, March 23, 1961
The Treasury Department, by this public notice, invites tenders for
$ 1,500,000,000 , or thereabouts, of 172 -day Treasury bills, to be issued on
discount basis under competitive and noncompetitive bidding as hereinafter p
The bills of this series will be designated Tax Anticipation Series, they wil
dated April 5, 1961 , and they will mature September 22. 1961 * They will
be accepted at face value in payment of income and profits taxes due on Septe
1961
f
and to the extent they are not presented for this purpose the face
amount of these bills will be payable without interest at maturity. Taxpayer
siring to apply these bills in payment of September 15, 1961 , income and pr
m
taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch
or to the Office of the Treasurer of the United States, Washington, not more
fifteen days before September 15, 1961 , and receiving receipts therefor sho
_pg$x
the face amount of the bills so surrendered. These receipts may be submitted in
lieu of the bills on or before September 15, 1961 , to the District Director
Internal Revenue for the District in which such taxes are payable. The bills
be issued in bearer form only, and in denominations of $1,000, $5,000, $10,0
$100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the clo
hour, one-thirty o'clock p.m., Eastern Stardard time, ,>g&tesday, March 26 j
x$a_*)
""""
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 tende
price offered must be expressed on the basis of 100, with not more than thre
mals, e. _;., 92.925. Fractions may not be used. It is urged that tenders be
I IV1CIN I
TREASURY DEPARTMENT
gr—_-—rr-jr_.-r_rrrrrr~~g^-rerrT_a<rg*fK!ii_.M„ti'.^.r-j' ? ff«m „ura>v«mr_«
218
W A S H I N G T O N , D.C
IMMEDIATE RELEASE,
Thursday^ March 23, 196l.
D-56
The Treasury Department, by this public notice, invites tenders
for $1,500,000,000, or thereabouts, of 172-day Treasury bills, to be
issued on a discount basis under competitive and noncompetitive
bidding as hereinafter provided• The bills of this series will be
designated Tax Anticipation Series, they will be dated
April 3, 196l,
and they will mature September 22, 1961.
They will be accepted at face value In payment of income and
profits taxes due on September 15,196l, and to the extent they
are not presented for this purpose the face amount of these bills
will be payable without interest at maturity. Taxpayers desiring
to apply these bills in payment of September 15,1961,income
and profits taxes have the privilege of surrendering them to any
Federal Reserve Bank or Branch or to the Office of the Treasurer
of the United States, Washington, not more than fifteen days before
September 15,19^1,and receiving receipts therefor showing the
face amount of the bills so surrendered. These receipts may be
submitted in lieu Of the bills on or before September 15, 19&1,
to the District Director of Internal Revenue for the District in
which such taxes are payable. The bills will be issued in bearer
form only, and in denominations of $1,000, $5,000. $10,000,
$100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern Standard
time, Tuesday, March 28, 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
- 2 face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated
bank or trust company.
, All bidders are required to agree not to purchase or to sell, or
to make any agreements with respect to the purchase or sale or other
disposition of any bills of this issue, until after one-thirty
o'clock p.m., Eastern Standard time, Tuesday, March 28, 1961.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcemen
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
$300,000 or less without stated price from any one bidder will be
accepted in full at the average price (in three decimals) of accepted
competitive bids. Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in cash or other
immediately available funds on April 3, 1961, provided, however, any
qualified depositary will be permitted to make payment by credit in
its Treasury tax and loan account for not more than 50 percent of the
amount of Treasury bills allotted to it for itself and its customers
up to any amount for which it shall be qualified in excess of existing
deposits when so notified by the Federal Reserve Bank of its District.*
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but are exempt from all taxation now or hereafter imposed on the
principal or Interest thereof by any State, or any of the possessions
of the United States, or by any local taxing authority. For
purposes of taxation the amount of discount at which Treasury bills
are originally sold by the United States is considered to be interest
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold
is not considered to accrue until such bills are sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such
bills, whether on original issue or on subsequent purchase, and the ,
amount actually received either upon sale or redemption at maturity
during the taxable year for which the return Is made, as ordinary 1 01
Treasury
prescribe
gain
of
Reserve
their
or Bank
loss.
Department
issue.
the or
terms
Branch.
Copies
of
Circular
the
of Treasury
theNo.
circular
4l8,
bills
Revised,
may
and
begovern
obtained
and the
this
from
conditions
notice,
any l ^
March 23, 1961.
IMMEDIATE RELEASE
Thursday, March 23, I96I
TREASURY TO RAISE $1-1/2 BILLION CASH IN TAX BILLS
The Treasury will receive tenders on Tuesday, March 28, I96I, for
$1-1/2 billion, or thereabouts, of Treasury tax anticipation bills, to be
dated April 3, 1961, and to mature September 22, 1961. These bills will be
acceptable in payment of income taxes due September 15, 1961- They may be
paid for up to 50$ by credit in Treasury tax and loan accounts.
This issue of bills is for the purpose of covering the current cash
needs of the Treasury, and will offset in part the $3-1/2 billion of tax
anticipation bills which matured on March 22, I96I, of which approximately
one-half were used by the holders in payment of income taxes due March 15,
1961.
In addition to the cash being obtained from the issue of $1-1/2 billion
of the September I96I tax anticipation bills, the Treasury has also announced
an increase of $100 million in the regular weekly Treasury bills to be dated
March 30, I96I. The Treasury may elect to raise an additional $200 million
by increasing the regular 91-day weekly Treasury bills maturing during the
following two weeks.
The Treasury also is planning to issue $2 billion in one-year Treasury
bills on April 15, 1961, for the purpose of redeeming a like amount of oneyear Treasury bills which mature on that date. The customary invitation
for tenders to these bills will be issued early in April.
0O0
D-57
TREASURY DEPARTMENT
^WASHINGTON, D.C.
March 23, 1961.
FOR IMMEDIATE RELEASE
TREASURY TO RAISE $1-1/2 BILLION CASH IN TAX BILLS
The Treasury will receive tenders on Tuesday, March 28, 1961, for
$1-1/2 billion, or thereabouts, of Treasury tax anticipation bills, to be
dated April 3, 1961, and to mature September 22, 1961. These bills will be
acceptable in payment of income taxes due September 15, 1961. They may be
paid for up to 50$ by credit in Treasury tax and loan accounts.
This issue of bills is for the purpose of covering the current cash
needs of the Treasury, and will offset in part the $3-1/2 billion of tax
anticipation bills which matured on March 22, 1961, of which approximately
one-half were used by the holders in payment of income taxes due March 15,
1961.
In addition to the cash being obtained from the issue of $1-1/2 billion
of the September 1961 tax anticipation bills, the Treasury has also announc
an increase of $100 million in the regular weekly Treasury bills to be date
March 30, I96I. The Treasury may elect to raise an additional $200 million
by increasing the regular 91-day weekly Treasury bills maturing during the
following two weeks.
The Treasury also is planning to issue $2 billion in one-year Treasury
bills on April 15, 1961, for the purpose of redeeming a like amount of oneyear Treasury bills which mature on that date. The customary invitation
for tenders to these bills will be issued early in April.
0O0
D-57
- 2O -1 4l •_
an important part of our over-all debt management program.
To the
extent that we are able to encourage millions of Savings Bonds
owners to retain their matured bonds and purchase new ones, to that
extent will individual citizens help strengthen the economy of our
country and prepare themselves and their children for a brighter
future. The more than $43 billion now outstanding Series E and H
r
n
Bonds is a magnificent testament of our people*s deep concern and
j
interest in their country's future welfare, as well as their own.
w
The new rate of interest on Series E bonds bearing issue dates
from May, 1941 through May, 1949 is comparable to the yield on outstanding marketable obligations of the United States that have ten
years to run to maturity. These bonds originally earned 2.90 per
cent if held to maturity. In their first extension period they have
been earning from 2.90 to 3.47 per cent if held to extended maturit
During the second extended maturity beginning May, 1961 and running
through May, 1979, they will all earn a straight 3 3/4 per cent per
year, compounded semi-annually.
#
**
fs
,-• _-,t
«~ _* _^
"By retaining their matured bonds and purchasing new ones,
individual citizens will not only prepare themselves and their
childeen for a more
secure future, but will help strengthe
the economy of our country. The more than
9
dillars
forty-three billi
[k now outstanding in Series E and H bonds
\
testifies to
foresighted
to the thrift of our people and to their
faith in the future of America."
;="•. J*" ••"'}
Under the new regulations, these bonds -- the first of
which will be twenty years old on May 1 -- htfe earn a full
three and three-quarters percent interest a year
now
They may be held for an additional ten years. Abour llliii fifteen
A
billion of the forty-three billion dollars « K
currently
outstanding In Series E and H Savings Bonds will be affected by
this action.
<£.
"/^ts^J
^^•^•^^^t-^c^, t " '
/C^i-<_-*. j.
1~J¥/%
DRAFT
0/;r
FOR IMMEDIATE RELEASE
March 24, 196l
The Secretary of the Treasury issued the following statement
today that will benefit some 10 million Americans who own Series E
savings bonds issued from May, 1941 through May, 1949:
^Under new Treasury regulations effective May 1, Series E
savings bonds issued from May, 1941 through May, 1949 may henceforth be held for an additional 10 years and earn a full 3 3/4$
IAKAJI ta-
per year.
The first of these bonds wCfffr 20 years old on May 1,
which is the 20th anniversary of the Savings Bond Program. About
15 billion dollars of the 43 billion dollars in Series E and H
/••*'
bonds currently outstanding will affected by this action.
"In addition to benefiting the bond holder,! this action to
encourage him to retain his bonds will diminish the Treasury's
problem of refinancing the public debt and will contribute to
the country's stability by keeping a sizeable portion of it in
the hands of the average citizen,V
Sec-ieta^y- ,&ll^m?^t4Xk^ /"jbhe Savings Bonds program represents
Series E Savings Bonds by selected issue dates outstanding at September 30,
I960, their original maturity values, their current redemption -values at said
date and their redemption values at their respective extended maturity dates
Original Current Redemption
maturity
value
outstanding
Sept* 30, I960
ttay 191*1
$
redemption
value
as of
Sept. 30, I960
2l*,l58,900 $
value at
end of first
extended
maturity
30,952,382.68 *
32,1*98,552.28
June-Nov. I9I4I
153,1*05,850
195,1*50,1*55.58
206,975,172.82
D e d 9 l » _ „ p r . 191^
1*81,523,900
602,851,628.52
65l,598,lla.lt8
87,211*,1*75
110,1|83,296.93
118,925,658.11
June-Nov. 19li2
588,91*3,200
7ii2,671,58U.85
801*, 967,565.76
Dec. 19l*2-May 19U3
959,007,750
1,190,591,71*8.72
l,3H*,22l*,220.60
June-Nov. 191*3
992,01*2,125
1,217,270,838.91
1,362,669,062.90
Dec. 19l*3-May 19kk
1,065,032,225
1,288,633,313.81
1,1*66,762,380.27
June-Nov. 19kk
1,107,226,935
l,317,l*08,53l*.39
l,528,U6,O6l.07
Dec. 19l*l*-May 191*5
1,206,970,360
1,10-2,075,869.63
1,669,961*,190.10
June-Nov. 191*5
l,061*,5l8,86o
1,226,700,179.78
1,1*76,700,562.59
Dec. 19l*5-May 191*6
71*0,31*3,305
81*1,609,520.79
1,029,669,1*68.59
June-Nov. 19l*6
573,031,935
61*1,1*60,790.29
798,806,517.39
Dec. 19U6-May 19U7
769,306,550
8i*9,7H*,9l*9.92
1,075,182,831*.28
June-Nov. 191*7
599,921*, 915
652,1*36,301.82
81*0,37U, 820.93
Dec. 19l*7-May 191*8
819,311,21*0
878,1*76,311.93
1,156,61(0,705.1*6
June-Nov. 19l*8
728,197,1*50
769,021,365.1*1*
1,025,156,370.11
Dec. 19l*8-May 19l*9
932,833,915
971,1*63,123.92
1.3l6.la5,220.8|
12,892,993,890
Hi,939,272,197.91
17,869,91*7,505.59
Hay 191*2
Total
REDEMPTION VALUES
*~c J
SERIES E SAVINGS BONDS (PER $100 FACE AMOUNT)
Issue dates
May 1941
June to Nov. l°Al
Dec.1941 to Apr.1942
Issue
price
$75.
tt
n
Value at
maturity
(10 years
from issue)
$100.
Value at first
extended maturity (20 years
from issue)
Value at second
extended maturity
(30 years from
issue)
$134.52
$195-04
134.92
195.64
135.32
196.20
May 1942
Tt
136.36
197-72
June to Nov. 1942
It
136.68
198.16
Dec.1942 to M_y 1943
tl
137-04
198.72
June to Nov. 1943
IT
137.36
199.16
Dec. 1943 to May 1944
It
137.72
199.68
June to Nov. 1944
n
138.04
200.16
Dec.1944 to May 1945
n
138.36
200 .60
June to Nov. 1945
tt
138.72
201.12
139.08
201.64
139*40
202.12
139.76
202.64
ltoo08
203.12
lto.44
203.64
l40o78
204.12
141.12
204.60
Dec.1945 to May 1946
June to Nov. 1946
tt
Dec.19^+6 to May 1947
June to Nov. 1947
tt
Dec.1947 to May ±9^8
June to Nov. 1948
Dec. 1948 to May 1949
tt
TREASURY DEPARTMENT
For Inquiries:
Mr. Reese - WO 4-4133
cZ1
v.
^ s . WASHINGTON, D
March 24, 1961
FOR RELEASE:
Sunday, A.M. Newspapers, March 26, 1961.
TREASURY ANNOUNCES HIGHER INTEREST RATE
FOR LONG-TERM HOLDERS OF SAVINGS BONDS
Treasury Secretary Douglas Dillon today announced new
regulations that will benefit some ten million Americans who own
Series E Savings Bonds issued from May, 194l, through May, 1949.
Under the new regulations, these bonds — the first of which
will be twenty years old on May 1 — will earn a full three and
three-quarters percent interest a year. They may now be held
for an additional ten years. About fifteen billion of the
forty-three billion dollars currently outstanding in Series E and
H Savings Bonds will be affected by this action.
"In addition to benefiting the bond holder," Secretary
Dillon said, "this action to encourage him to retain his bonds
will diminish the Treasury's problem of refinancing the public
debt and will contribute to the country's stability by keeping
a sizeable portion of it in the hands of the average citizen.
"By retaining their matured bonds and purchasing new ones,
individual citizens will not only prepare themselves and their
children for a more secure future, but will help strengthen the
economy of our country. The more than forty-three billion
dollars now outstanding in Series E and H bonds testifies to the
foresighted thrift of our people and to their faith in the future
of America."
The new rate of interest on Series E bonds bearing issue
dates from May, 19^1 through May, 1949 is comparable to the yield
on outstanding marketable obligations of the United States that
have ten years to run to maturity. These bonds originally earned
2.90 per cent if held to maturity. In their first extension
period they have been earning from 2.90 to 3.47 per cent if held
to extended maturity. During the second extended maturity they
will all earn a straight 3-3/^ per cent per year, compounded
Attachments:
semi-annually.Series E Bonds Redemptipn Values
Series E Bonds Outstanding
D-58
§
OQ
TREASURY DEPARTMENT
For Inquiries:
Mr. Reese - WO 4-4133
__t _^ ^
WASHINGTON, D.C.
March 24, 1961
FOR RELEASE:
Sunday, A.M. Newspapers, March 26, 1961.
TREASURY ANNOUNCES HIGHER INTEREST RATE
FOR LONG-TERM HOLDERS OF SAVINGS BONDS
Treasury Secretary Douglas Dillon today announced new
regulations that will benefit some ten million Americans who own
Series E Savings Bonds issued from May, 194l, through May, 1949.
Under the new regulations, these bonds — the first of which
will be twenty years old on May 1 — will earn a full three and
three-quarters percent interest a year. They may now be held
for an additional ten years. About fifteen billion of the
forty-three billion dollars currently outstanding in Series E and
H Savings Bonds will be affected by this action.
"In addition to benefiting the bond holder," Secretary
Dillon said, "this action to encourage him to retain his bonds
will diminish the Treasury's problem of refinancing the public
debt and will contribute to the country's stability by keeping
a sizeable portion of It in the hands of the average citizen.
"By retaining their matured bonds and purchasing new ones,
individual citizens will not only prepare themselves and their
children for a more secure future, but will help strengthen the
economy of our country. The more than forty-three billion
dollars now outstanding in Series E and H bonds testifies to the
foresighted thrift of our people and to their faith in the future
of America."
The new rate of interest on Series E bonds bearing issue
dates from May, 194l through May, 19^9 is comparable to the yield
on outstanding marketable obligations of the United States that
have ten years to run to maturity. These bonds originally earned
2.90 per cent if held to maturity. In their first extension
period they have been earning from 2.90 to 3.^7 per cent if held
to extended maturity. During the second extended maturity they
will all earn a straight 3-3A Pev c e n t P e r y ear > compounded
semi-annually.
Attachments: Series E Bonds Redemption Values
Series E Bonds Outstanding
D-58
£ cL ^
REDEMPTION VALUES
SERIES E SAVINGS BONDS (PER $100 FACE AMOUNT)
Issue dates
May 194L
Issue
price
Value at
maturity
(10 years
from issue)
$75.
$100.
Value at first
extended maturity (20 years
from issue)
Value at second
extended maturity
(30 years from
issue)
$134.52
$195-04
June to Nov. 194l
It
134.92
195-64
Dec.19^1 to Apr. 1942
II
135.32
196.20
SI
136.36
197.72
June to Nov. 1942
lit
136.68
198.16
Dec. 19^2 to May 1943
M
137-04
198.72
June to Nov. 1943
II
137.36
199.16
Dec.1943 to May 1944
III
137.72
199.68
June to Nov* 1944
M
138.04
200.16
Dec.1944 to May 1945
tt
138.36
200.60
June to Nov. 1945
It
138.72
201.12
Dec.1945 to May 1946
It
139-08
201.64
June to Nov. 1946
It
139.40
202.12
139.76
202.64
ito.08
203.12
May 19^2
Dec.1946 to May 1947
it
tt
n
June to Nov. 1947
16
Dec.1947 to May 1948
11
140.44
203.64
June to Nov. 1948
w
lUO.78
204.12
Dec. 1948 to May 1949
n
141.12
204.60
tt
C_ v_> v >
Series E Savings Bonds by selected issue dates outstanding at September 30,
I960, their original maturity values, their current redemption values at said
date and their redemption values at their respective extended maturity dates
Original Current Redemption
maturity
value
outstanding
Sept. 30, I960
May 19ltl
$
2l*,l58,900 «
redemption
value
as of
Sept. 30, I960
30,952,382.68
value at
end of first
extended
maturity
$
32,1*98,552.28
June-Nov. 191*1
153,1*05,850
195,1*50,1*55.58
206,975,172.82
Ped9la-Apr. 19l*2
1*81,523,900
602,851,628.52
651,598, lla. U8
87,21l*,l*75
110,1*83,296.93
118,925,658.11
June-Nov. 19l*2
588,9U3,200
7l*2,671,581*.85
80l*,967,565.76
Dec. 19l*2-May 191*3
959,007,750
1,190,591,71*8.72
l,3H*,22l*,220.60
June-Nov. 191*3
992,01*2,125
1,217,270,838.91
1,362,669,062.90
Dec. 19l*3-May 191*1*
1,065,032,225
1,288,633,313.81
1,1466,762,380.27
June-Nov. 191*1*
1,107,226,935
l,317,l*08,53l*.39
1,528,1*16,061.07
Dec. 19l*l*-May 19l*5
1,206,970,360
1,1*12,075,869.63
1,669,961*,190.1O
June-Nov. 191*5
l,06i*,5l8,860
1,226,700,179.78
1,1*76,700,562.59
Dec. 19l*5-May 191*6
7UO,3l»3,305
81a,609,520.79
1,029,669,1*68.59
June-Nov. 191*6
573,031,935
6141,1*60,790.29
798,806,517.39
Dec. 19l*6-May 19U7
769,306,550
8U9,711*, 9U9.92
1,075,182,831*. 28
June-Nov. 191*7
599,921+, 915
652,1*36,301.82
81*0,37U,820.93
Dec. 19l*7-May 191*8
819,311,21*0
878,1*76,311.93
1,150,61*0,705.1*6
June-Nov. 191*8
728,197,1*50
769,021,365.1*1*
1,025,156,370.11
Dec. 19l*8-May 191*9
932,833,915
971,1*63,123.92
1,316,10-5,220.85
12,892,993,890
ll*,939,272,197.91
17,869,91*7,505.59
Hay 19k2
Total
0Q1
L. \J _-
FOR IMMEDIATE RELEASE
March 24, 1961
DILLON TERMS LATEST TREASURY REFUNDING A SUCCESS
Treasury Secretary Douglas Dillon today announced that more than six
billion dollars has been subscribed to the Department's latest advance refunding operation, which he described as "a gratifying success." Subscription books for the offering were opened March 20-22. Holders of 31$ of the
outstanding issues exchanged them for new securities.
"The Treasury has accomplished a significant reduction in the debt coming
due in 1962 and 1963,* Secretary Dillon said. "Consequently, we will be in a
much stronger position to conduct the necessary financing operations facing the
Treasury in those years. The operation is a gratifying success. It illustrates
the fact that the Treasury can obtain an extension of the debt without disturbance in the market for outstanding issues."
Preliminary reports from the Federal Reserve Banks show that total subscrij
tions received amount to $6,017 million. These subscriptions (including $5,438
million from public holders and $579 million from the Federal Reserve Banks and
Government Investment Accounts) have been received to the two issues of 3-3/85J
and 3-5/8$ intermediate-term Treasury Bonds included in the current offering of
the Treasury to the holders of outstanding issues of 2-1/4$ Treasury Bonds of
June 15, 1959-62, and December 15, 1959-62, 2-5/8$ Treasury Notes of February 15
1963, and 2-1/2$ Treasury Bonds of August 15, I963, aggregating $19.5 billion.
All subscriptions will be allotted in full. The new 3-3/8$ and 3-5/8$ bonds
will be dated March 15, I96I, with delivery to be made on March 30, 1961.
Subscriptions are as follows (in millions of dollars):
From Public From Fed. Res. Banks
New Issue
Holders
3-3/8$ Bonds of 1966
3-5/8$ Bonds of 1967
Total
—
$2,375
3,063
$5,438
& Govt. Inv. Accts.
$39
540
15^9
Ibtal
$2,4U
3,603
$6,017
Details by Federal Reserve Banks as to subscriptions will be announced
when final reports are received.
0O0
D-59
9Q9
TREASURY DEPARTMENT
£ _ v^/'
miwwwwiviMmi^iies^^
WASHINGTON, D.C.
FOR IMMEDIATE RELEASE
March 24, 1961
DILLON TERMS LATEST TREASURY REFUNDING A SUCCESS
Treasury Secretary Douglas Dillon today announced that more than six
billion dollars has been subscribed to the Department's latest advance refunding operation, which he described as "a gratifying success." Subscription books for the offering were opened March 20-22. Holders of 31$ of the
outstanding issues exchanged them for new securities.
"The Treasury has accomplished a significant reduction in the debt coming
due in 1962 and I963," Secretary Dillon said. "Consequently, we will be in a
much stronger position to conduct the necessary financing operations facing the
Treasury in those years. The operation is a gratifying success. It illustrates
the fact that the Treasury can obtain an extension of the debt without disturbance in the market for outstanding issues."
Preliminary reports from the Federal Reserve Banks show that total subscriptions received amount to $6,017 million. These subscriptions (including $5>438
million from public holders and $579 million from the Federal Reserve Banks and
Government Investment Accounts) have been received to the two issues of 3-3/8$
and 3-5/8$ intermediate-term Treasury Bonds included in the current offering of
the Treasury to the holders of outstanding issues of 2-1/4$ Treasury Bonds of
June 15, 1959-62, and December 15, 1959-62, 2-5/8$ Treasury Notes of February 15,
I963, and 2-1/2$ Treasury Bonds of August 15, I963, aggregating $19-5 billion.
All subscriptions will be allotted in full. The new 3-3/8$ and 3-5/8$ bonds
will be dated March 15, 1961, with delivery to be made on March 30, I96I.
Subscriptions are as follows (in millions of dollars):
New Issue
3-3/8$ Bonds of 1966
3-5/8$ Bonds of 1967
Total ---
From Public
Holders
$2,375
$5,**3B
From Fed. Res. Banks
& Govt. Inv. Accts.
$39
540
$579
Total
$2,4l4
3,603
$6,017
Details by Federal Reserve Banks as to subscriptions will be announced
when final reports are received.
0O0
D-59
BH&ASE A. M. HBWSafcPSSS, Ta.8<jay, Mareia 28, 1961.
tenders for tiro seriei tj
Treaauri bills, on© series to be an additional issue of the bills da tod December 29
to bo da tod larch 30, 1961, which were offered on March 2?
were opened at the
Beaerve Bank® on mrch 27. Tenders were invited for
§1,100,000,000, or
, of 91-day bills and for $500,000,000, or thereabout!,
of I82~day M i l e . The
series are at follows?
?l~day Treasury bill*
s
182-day Treasury bills
.*u
jt * .*, * J. v m
*
maturing September 28, l;
mBMMmmm*i*0mmimmimM*m*immimi
High
tow
99.1*05
99.590
99.395
mmmmmmmmm*Mmm*mmlmmmmiMm
Pric
98.716
2.U3*
2.392* 1/
Animal Sat.
<aMH«MHMIMMMWInMMHI
2.5UO*
2.58»
96.696
73 percent of the amount of 91*4ay M i l s bid for at the lew price was accepted
of the amount of 182-day bills bid for at the low price was accepted
ttHGAX TENDERS A*?IJM
District
>n
Mew fork
Philadelphia
y
FOR HMD M O T
Bf FBHRAL ttSSflVS DISTRICTS *
Applied For
Aocptad
mmmmmitmmmmmmmmmmmmmmmmim*
mmmmmmmmmmmmmm
#
35,599,000
968,000 $
000
23,559,000
1,10.6,132,000
8?8,8U8,O00
000
738,1*62,000
2,269 000
25,293,000
7,287,000
10,212,000
U»,739 000
fe9,053,0O0
19,820,000
2lt,053,000
7,16U 000
18,666,000
11,21U,000
16,666,000
3,393 000
20,57?#000
1»,951*,000
20,096,000
27,31*2 000
66,037,000
St. Louis
112,951,000
tif5?3fOOO
3,251* 000
3,751*, 000
Minneapolis
19,073,000
14,6^0,000
1,067 000
5,067,000
Kansas City
10,890,000
4i,S5o,ooo
5,979 000
12,6214,000
36,550,000
il,37fe,OO0
San Francisco
71,135.000
2,632 000
3,832,000
ll,37U,0O0
90,766,000
,000 31,100,021,000 ej 51,01*6,395,000
22A06O 000
29,990,000 1500,065
n M M M M M i M W M M
m v ^ , ^ **.v <#,;-«*.,000 noncompetitive tenders accepted at the average prioe of 99JJ
Includes #35*959*000 noncompetitive tenders accepted at the average prloe of 98.698
a coupon iseue of the same length and for the same amount invested, the return o
these bills would provide yields of 2.Uk%, for the 91-day bills, and 2.(6%, f°r *
182-day bills. Interest rates on bills are quoted In terns of bank discount witty
the return related to the face amount of the M i l e payable at maturity rather ttf
the amount Invested and their length in actual number of days related to a 3^0-41
year. In contrast, yields on certificates, notes, and bonds are computed in te»
of interest m the amount invested, and relate the number of days remaining la **
interest payment period to the actual number of days in the period, with seal**"*
comDoundlng if more than one coupon period is involved.
TREASURY DEPARTMENT
n__.iW)i»
"•iw-l
OQ-1
Vy
WASHINGTON, D.C.
March 27, 1961.
REIEASE A, M. NEWSPAPERS, Tuesday, March 28, 1961+
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 December 29,
i960, and the other series to be dated March 30, 1961, which were offered on March 22,
were opened at the Federal Reserve Banks on March 27. Tenders were invited for
$1,100,000,000, or thereabouts, of 91-day bills and for $500,000,000, or thereabouts,
of 182-day bills. The details of the two series are as follows?
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing June 29, 1961
Approx. Equiv.
Price
Annual Rate
99.405
99*390
99.395
2.3542
2.4132
2.3922 1/
182-day Treasury bills
maturing September 28, 1961
Approx. Equiv.
Price
Annual Rate
98.716
98.694
98.698
2.5402
2.5832
2.5762 1/
73 percent of the amount of 91-day bills bid for at the low price was accepted
40 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
Applied For
Applied For _ Accepted
968,000 r
818,000
23,559,000
*
35,599,000 $
878,848,000 409,348,000
738,462,000
1,416,132,000
7,287,000
2,269,000
10,212,000
25,293,000
19,820,000
14,739,000
24,053,000
49,053,000
11,214,000
7,164,000
18,666,000
18,666,000
4,954,000
3,393,000
20,096,000
20,577,000
68,037,000
27,342,000
112,951,000
178,801,000
3,754,000
3,254,000
19,073,000
21,573,000
5,067,000
1,067,000
10,890,000
14,6140,000
12,624,000
5,979,000
38,550,000
41,550,000
3,832,000
2,632,000
11,374,000
11,374,000
000 *
29,990,000
22,080,000
72,135,
90,766,000
,100,021,000
a/
$1,046,395,000
$500,085,000
b/
H792& ,024,000
a/ Includes $176,908,000 noncompetitive tenders accepted at the average price of 99.395
V Includes $35,959,000 noncompetitive tenders accepted at the average price of 98.698
3/ On a coupon issue of the sametlength and for the same amount invested, the return on
' these bills would provide yields of 2.1i42, for the 91-day bills, and 2.652* 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.
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
D-60
HSI_AS1 A. If. SEWSPAPEBS,
W.dne«day, March 29. 1961.
^ •? r
-v -
{/)
s ,
K/~~ 6> /
The Treasury t^parteent announced last evening that the tenders far tl,500,000,OC
or thereabouts, of/l7?-day Treasury bills to be dated April 3 and to nature dept«ber
1961, which were offered on March 23, were opened at the Federal Reserve Banks en
Mareh 28.
The details of thin issue are as follow i
Total applied for - $3,8?l*,63$,000
Total accepted
- 1,501,150,000
(includes 1218,935,000 entered on a
noncowpetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bidet (Excepting three tenders totaling $1,900,00
High - 96.863 Iquivalent rate ef discount approx. 2.380$ jw asm
10*
- 98.810
•
•
•
•
Average
- 98.818
»
s
•
•
«
2.U91S *
•
2.h73* •
•
(47 percent of the amount bid for at toe low price was accepted)
Federal Reserve
District
f«Ul
Applied for
Total
Aeeapt.4
Boston
Sew York
Philadelphia
Cleveland
Bichstond
Atlanta
Chisago
St. Louis
Finneapolis
Kansas City
Dallas
San Francisco
$
1
TOTAL
213,880,000
1,689,980,000
186,190,000
379,695,000
69,930,000
121,975,000
I»31,i415,000
11^,265,000
97,b80,000
88,900,000
2k5,500,000
255,1*5,000
106,080,000
tl6,7«5,0O0
75,876,000
177,675,000
37,1*98,000
70,103,000
2l5,98b,OO0
U,7O2,000
58,055,000
39,730,000
169,850,000
91,810,008
tl,5oi,i5o,ooo
83,89it,635,000
1/ On s coupon issue of the sane length and for tha earn snout invented, the refcara •
~
these bills would provide a yield of 2.541. Interest ratae on bills are qeetai 1
terns of bank discount with the return related to the fane amount of toe bills H
able at maturity rather than the amount invested and their length in actual mM
of days related to a 360-day year. In contrast, yields on certificates, notes* *
bonds are computed in terns of interest on the aaount invested, and relate toe '
number of days remaining in an interest payment period to toe actual amber af llj
in the period, with semiannual compounding if wore than one coupon period is iMtt
/(
\vl\
March 28, 1961
j^SE A. M. NEWSPAPERS,
dnesday, March 29, 196l.
The Treasury Department announced last evening that the tenders for $1,500,000 000
• thereabouts, of Tax Anticipation Series 172-day Treasury bills to be dated April'3 '
id to mature September 22, 196l, which were offered on March 23, were opened at the
ideral Reserve Banks on March 28.
The details of this issue are as follows:
Total applied for - $3,894,635,000
Total accepted
- 1,501,150,000 (includes $218,935,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids? (Excepting three tenders totaling $1,900,000)
Hi h
_ - 98.863 Equivalent rate of discount approx. 2.3802 per annum
n
M
Low
- 98.810
"
«
«
2.4912
Average - 98.818 » » •» w » 2.4732
n n
w
w
1/
(47 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
$
$
213,880,000
1,689,980,000
186,190,000
379,695,000
69,930,000
121,975,000
1*31,415,000
114,265,000
97,480,000
88,900,000
255,425,000
106,080,000
416,785,000
75,878,000
177,675,000
37,498,000
70,103,000
215,984,000
41,702,000
58,055,000
39,730,000
169,850,000
91,810,000
$3,894,635,000
$1,501,150,000
245,5oo,ooo
TOTAL
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide a yield of 2.54$* 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.
- 3 -
0
/ ^
7
• *•»>.< * v;•:£•: o t n >:• w >:tf •,
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 intere
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amoun
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 e
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, wheth
on original issue or on subsequent purchase, and the amount actually received eith
upon sale or redemption at maturity during the taxable year for which the return i
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe the
terms of the Treasury bills and govern the conditions of their issue. Copies of
the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 -
decimals, e. g., 99.925. Fractions may not be used. It is urged that 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
raent 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 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
bills dated January 5, 1961 , ( 91 days remaining until maturity date on
_§lac
July 6. 1961
X2_fi$SC
) 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 resp
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on April 6, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills matur
ing April 6. 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 anv exasjpstd_m~ as such, and los
O ^Q
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE, 4:00 P.M., i
Wednesday, March 29, 1961
P£
The Treasury Department, by this public notice, Invites tenders for two series
of Treasury bills to the aggregate amount of $ 1,600,000,000 , or thereabouts; for
xp§E
cash and in exchange for Treasury bills maturing
April 6, 1961
x$3$
, in the amount
of $ 1,501.015,000 , ^s follows:
91 -day bills (to maturity date) to be issued April 6, 1961 ,
in the amount of $ 1,100,000,000
9
or thereabouts, represent-
ing an additional amount of bills dated January 5, 1961 ,
mand to mature
July 6. 1961
, originally issued in the
x$E£
amount of $ 500,256.000
to be freely interchangeable.
, the additional and original bills
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
w_yt
13dgr
April 6f 1961
, and to mature
October 5, 1961
The bills of both series will be issued on a discount basis under competitive
N
and noncompetitive bidding as hereinafter provided, and at maturity their face amoui
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 closi
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 5, 1961 _
xp££
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
r-s
TREASURY DEPARTMENT
-••
..'*:.'.
"
••'."••".".'-•-;••—"-.''•-..'.^;:•!•^••^••..-•^:''.••••r•l•"^l
u
'^
/y^__,
•'rv<M''ir1;';'ii».l,^-HVM^n,,r,,l,,,.|,.i^i,J,;,l,,,.,,,^v^,,.,,i^
WASHINGTON, D.C.
March 29, 196l
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$1,600,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing April 6, 196l,
in the amount of
$1,501,013,000, as follows:
91-day bills (to maturity date) to be issued April 6, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated January 5, 1961, and to
mature July 6, 1961,
originally issued in the amount of
$500,236,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
April 6, 196l,
and to mature October 5, 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 villi be payable without interest.
They will be issued in bearer form only, and in denominations of
$1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity
value) . /,
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, April 3, 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 e>cpressed 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
D-62
or trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and^price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
January 5, 196l, (91 days remaining until maturity date on
July 6, 196l)
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 April 6, 19ol,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing April 6, 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
Federal
of theirReserve
issue. Bank
Copies
or Branch.
of the circular may be obtained from any
Comparison of principal items of assets and liabilities of active national banks - Continued
(In thousands of dollars)
Increase or decrease :Increase or decrease
Dec. 31, since Oct. 3. i960
Oct. 3.
Dec. 31,
:since Deo. 31. 1959
1959
i960
i960
Amount 'Percent'
Amount •Percent
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand
Time
Deposits of U. S. Government
Postal savings deposits
Deposits of States and political
subdivisions
*.
Deposits of banks
Other deposits (certified and
cashiers' checks, etc.)
Total deposits
Rills payable, rediscounts, and other
liabilities for borrowed money
Other liabilities
Total liabilities, excluding
capital accounts
CAPITAL ACCOUNTS
Total
Capital stock:
Surplus
Common
Undivided profits.
Preferred
Reserves
Total surplus, profits and
reserves
Total
capital accounts.. • • • • • • • • •
\-,.J
63,131,263 59.025,5^7
36,761,292 35,972,75'*
3,448,244 4,087,800
8,297
8,300
8,473.965
8,885,686
9,297,327
10,439,491
1.509.134
1.824,934
124,910,851 117,963,183
62,496,399
3^.385,356
2,936.037
9,042
8,469.237
9,460,445
4,105,716
788,538
-639,556
3
823,362
1.553,805
6.96
2.19
15.65
.04
9.72
17.^
634,864
2,375.936
512,207
-742
828,090
979,046
1.02
6.91
17.45
-8.21
9.78
10.35
1.881.161
315.800
6,947,668
20.93
5.«9
-56.227
5.273,17^
-2.99
4.41
H9.637.677
-902,733
-^3,290
.89.09
-3.^8
-229,772
785.131
•67.51
33,33
4.85
5.828,533
4__
5.52
110,590
3.141.088
1,013,323
3.254,378
3^0,362
2,355.957
5.931.645
128.162.529
122.230.884
122.333.996
3^.773
3.342.850
5,^0.143
3,341,320
2,030,052
1.530
279.293
3.308.077 "3.169,742 ~ Z&321
5,062,684
195,284
5.250,859
3,306,547
3.166,651
1,814,637
171,077
2,201,129
1.530
j?,,Cgl.
_ _ _ _ _ _ _
_ _ _ _ _ _ _
29.905
J-P__
3.72
-7.77
174,669
.-.-1,561
173,108
384,059
215,415
_ _ _ _
_ _ _ _ _ _
5^,112
88.885
.70
...81
623.113
„____[
6.020,530
4.52
6.624.754
7.755.488
7,70l.3?6
7.132.375
!53_, 10,302,117
lliP?8,338 11,009,4;
Total
liabilities
and
capital accounts
139.26o.867 133.240.337 132.636.113
Peroent
Percent
Percent
RATIOS:
23.95
22.97
23.49
U.S.Gov't securities to total assets
45.21
47.39
45.74
Loans & discounts to total assets
Capital- accounts to total deposits
8.89
9.33
8.61
1.05
_ _ _
*M
7.59
11.87
_ _ _ _
8__
7__
_.-22
NOTE: Minus sign denotes decrease.
Statement showing comparison of principal items of assets and liabilities of active national banks as
of Dec. 31, i960, Oct. 3t I960, and Dec. Jl9 1959
(In thousands of dollars)
Dec. 31,
i960
Number of banks
ASSETS
Commercial and industrial loans
Loans on real estate
Loans to financial institutions
All other loans
Total gross loans
Less valuation reserves
Net loans
U. S. Government securities:
Direct obligations
Obligations fully guaranteed
Total U. S. securities
Obligations of States and political
subdivisions
Other bonds, notes, and debentures..
Corporate stocks, including stocks
of Federal Reserve banks
Total securities
Total loans and securities
Currency and coin
Reserve with Federal Reserve banks..
Balances with other banks
Total cash, balances with other
banks, including reserve balances and cash items in
process of collection
Other assets
Total assets
^.530
Oct. 3,
i960
4,535
1)60
• 31.
*959
4,542
: Increase or decrease :Increase or dedrease
..since Oct. 3. i960
.since Dec. 31. 1959
.
Amount
'Percent ' Amount
'Percent
23,414,546
15,416,351
4,911,095
20.629.765
64,371,757
1.234.579
o3Tl37,l78
22,309,563
15,169,786
4,249,564
19.434,937
61,163,850
1.201.861
59,961,989
564,841
117,855
-631,141
576.893
628,448
71.958
556,490
32,615,321
96.402
32.711.723
30,507,592
91.209
30.598.801
31,723,878
37.092
31.760.970
2,107,729
5.193
2.112.922
9,*K)8,7ll
1,407,576
9,123,621
1,245,349
9.036,149
1,553,557
285,090
162,227
302.179
316.748
41.284,519 42.652.855
104.421.697 102.614.844
1,5^6,553
1,521,33^
10,833,627
11,247,162
13.466.182
14.695.749
7.436
2,567.675
3.124.165
17^,939
-192,046
2.845.251
25.846.362
2,972.278
133.240,337
-,„_..
2.828.144
68.221
6,020,530
28.674.506
3.040,499
139.260,867
27.464.245
2,557.024
132.636,113
-12
-5
23,979,387
15,534,206
4,279,954
21.206,658
65,000,205
1.306.537
63,693,668
324.184
43.852,194
107.545.862
1,721,492
10,641,581
I6'.31l\hy3
#0
1,669,824
364,420
30,390
1-771.721
3.836,355
104,676
3,731,679
7.**8
2.40
.72
9.12
6.27
8.71
"722
6.91
891,443
59.310
950.753
2.81
159.90
2,22
3.12
13.03
372,562
-145,981
4.12
-9.^0
6.22
2.99
11.31
-1.77
21.13
22.005
1,199.339
4.931.018
200,158
-605,581
1.615.684
7.28
2.81
4.81
13.16
-5.38
10.99
10.94
2.30
4.52
1.210.261
483,475
6,624,754
4.41
18.91
2.41
.76
-12.85
2.80
.98
_ _ _
188
6.91
_ _ _ .
_____
4.99
-
2
for the purpose of purchasing or carrying stocks, bonds, and other securities of
$2,115,000,000 increased $164,000,000. Other loans, including loans to fanners and
other loans to individuals (repair and modernization and installment cash loans, and
single-payment loans) amounted to $12,461,000,000. The percentage of net loans and
discounts (after deduction of valuation reserves of $1,306,537,000) to total assets
on December 31 • I960 was 45*74 in comparison with 45.21 in December 1959.
Total investments of the banks in bonds, stocks, and other securities aggregated
$43,852,000,000. Included in the investments were obligations of the United States
Government of $32,712,000,000 ($96,402,000 of which were guaranteed obligations).
These investments, representing 23*49 percent of total assets, showed an increase of
$951f000,000 during the year. Other bonds, stocks, and securities of $11,140,000,000,
including $9,409,000,000 of obligations of States and other political subdivisions,
showed an increase of $249,000,000.
Cash of $1,721,000,000, reserves with Federal Reserve banks of $10,642,000,000,
and balances with other banks (including cash items in process of collection) of
$l6,3Ht000,000, a total of $28,674,000,000, showed an increase of $1,210,000,000.
Bills payable and other liabilities for borrowed money of $110,600,000 showed
a decrease of $230,000,000 in the year.
Total capital funds of the banks on December 31, i960 of $11,098,000,000, equal
to 8.89 percent of total deposits, were $796,000,000 more than in December 1959 ^©n
they were 8.6l percent of total deposits. Included in the capital funds were capital
stock of $3,343,000,000, of which $1,530,000 was preferred stock; surplus of
$5,446,000,000; undivided profits of $2,030,000,000 and capital reserves of
$279,000,000.
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
$4
-1 ^ r
n
March 30, 1961.
RELEASE A.M. NEWSPAPERS,
FRIDAY, MARCH 31. 1961.
COMPTROLLER OF THE CURRENCY REPORTS TOTAL ASSETS AND LIABILITIES
OF ACTIVE NATIONAL BANKS ON DECEMBER 31, I960.
The total assets of the 4,530 active national banks in the United States and
possessions on December 31 , i960 amounted to $139,300,000,000, it was announced
today by Comptroller of the Currency Ray M. Gidney. The total assets showed an
increase of $6,600,000,000 over the amount reported by the 4,542 banks on
December 31» 1959*
The deposits of the banks on December 31, i960 were nearly $125,000,000,000,
an increase of $5*273,000,000 during the year. Included in the deposit figjares were
demand deposits of individuals, partnerships, and corporations of $63,000,000,000,
an increase of $635,000,000, and time deposits of individuals, partnerships, and
corporations of $37,000,000,000, an increase of $2,376,000,000. Deposits of the
United States Government of $3,448,000,000 increased $512,000,000; deposits of
States and political subdivisions of nearly $9,300,000,000 increased $828,000,000;
and deposits of banks of $10,400,000,000 showed an increase of $979,000,000.
Postal savings deposits were $8,300,000 and certified and cashiers * checks, etc.
were $1,825,000,000.
Gross loans and discounts on December 31, I960 of $65,000,000,000 showed an
increase of $3,836,000,000 during the year. Commercial and industrial loans
amounted to nearly $24,000,000,000 and increased $1,670,000,000 during the year,
while loans on real estate of $15,534,000,000 increased $364,000,000. Loans to
financial institutions amounted to $4,280,000,000, an increase of $30,000,000.
Retail automobile installment loans of $5,000,000,000 showed an increase of
$479,000,000. Other types of retail installment loans of $1,630,000,000 showed an
increase of $47,500,000. Loans to brokers and dealers in securities and to others
D-63
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
„ _
k 41)
n
March 30, 1961.
RELEASE A.M. NEWSPAPERS,
FRIDAY, MARCH 31, 1961.
COMPTROLLER OF THE CURRENCY REPORTS TOTAL ASSETS AND LIABILITIES
OF ACTIVE NATIONAL BANKS ON DECEMBER 31, I960.
The total assets of the 4,530 active national banks in the United States and
possessions on December 31, I960 amounted to $139,300,000,000, it was announce
today by Comptroller of the Currency Ray M. Gidney. The total assets showed an
increase of $6,600,000,000 over the amount reported by the 4,542 banks on
December 31, 1959.
The deposits of the banks on December 31, i960 were nearly $125,000,000,000,
an increase of $5,273,000,000 during the year. Included in the deposit figures
demand deposits of individuals, partnerships, and corporations of $63,000,000
an increase of $635,000,000, and time deposits of individuals, partnerships, a
corporations of $37,000,000,000, an increase of $2,376,000,000. Deposits of th
United States Government of $3,448,000,000 increased $512,000,000; deposits of
States and political subdivisions of nearly $9,300,000,000 increased $828,000
and deposits of banks of $10,400,000,000 showed an increase of $979,000,000.
Postal savings deposits were $8,300,000 and certified and cashiers1 checks, et
were $1,825,000,000.
Gross loans and discounts on December 31, I960 of $65,000,000,000 showed an
increase of $3,836,000,000 during the year. Commercial and industrial loans
amounted to nearly $24,000,000,000 and increased $1,670,000,000 during the yea
while loans on real estate of $15,534,000,000 increased $364,000,000. Loans to
financial institutions amounted to $4,280,000,000, an increase of $30,000,000.
Retail automobile installment loans of $5,000,000,000 showed an increase of
$479,000,000. Other types of retail installment loans of $1,630,000,000 showed
increase of $47,500,000. Loans to brokers and dealers in securities and to oth
D-63
-
2
for the purpose of purchasing or carrying stocks, bonds, and other securities of
$2,115,000,000 increased $164,000,000. Other loans, including loans to farmers and
other loans to individuals (repair and modernization and installment cash loans, and
single-payment loans) amounted to $12,461,000,000. The percentage of net loans and
discounts (after deduction of valuation reserves of $1,306,537,000) to total assets
on December 31, I960 was 45.74 in comparison with 45.21 in December 1959.
Total investments of the banks in bonds, stocks, and other securities aggregated
$43,852,000,000. Included in the investments were obligations of the United States
Government of $32,712,000,000 ($96,402,000 of which were guaranteed obligations).
These investments, representing 23.49 percent of total assets, showed an increase of
$951,000,000 during the year. Other bonds, stocks, and securities of $11,140,000,000
including $9,409,000,000 of obligations of States and other political subdivisions,
showed an increase of $249,000,00a
Cash of $1,721,000,000, reserves with Federal Reserve banks of $10,642,000,000,
and balances with other banks (including cash items in process of collection) of
$16,311,000,000, a total of $28,674,000,000, showed an increase of $1,210,000,000.
Bills payable and other liabilities for borrowed money of $110,600,000 showed
a decrease of $230,000,000 in the year.
Total capital funds of the banks on December 31, I960 of $11,098,000,000, equal
to 8.89 percent of total deposits, were $796,000,000 more than in December 1959 ^en
they were 8.6l percent of total deposits. Included in the capital funds were capital
stock of $3,343,000,000, of which $1,530,000 was preferred stock; surplus of
$5,446,000,000; undivided profits of $2,030,000,000 and capital reserves of
$279,000,000.
Statement, showing comparison of principal items or assets and liabi_-i-bi.es of ae-tive national l^anks as
of Dec. 31, i960. Oct. 3, I960, and Dec. 31, !959
(In thousands of dollars)
Dec. 31,
i960
Number of banks••••••..«•••
ASSETS
Commercial and industrial loans.....
Loans on real estate
Loans to financial institutions
All other loans
Total gross loans
Less valuation reserves
Net loans
U. S. Government securities:
Direct obligations
Obligations fully guaranteed
Total U. S, securities
Obligations of States and political
subdivisions
Other bonds, notes, and debentures..
Corporate stocks, including stocks
of Federal Reserve banks
Total securities
Total loans and securities
Currency and coin
Reserve'with Federal Reserve banks..
Balances with other banks..
Total cash, balances with other
banks, including reserve balances and cash items in
process of collection
Other assets
Total assets
4,530
Oct. 3,
i960
4,535
Dec. 31,
1959
4,542
.12
-5
2.41
.76
-12.85
2.80
.98
5.83
^88
1,669,824
364,420
30,390
1.77L721
3.836,355
104,676
3.731,679
7.48
2.40
- .72
9.12
6.27
8,71
^ 2
2,107,729
5.193
2,112,922
6.91
6.91
891,443
59.310
950.753
2.81
159.90
2.99
9,036,149
1,553,557
285,090
162,227
3.12
13.03
372,562
-.145,981
4.12
•9.40
316,748
41,284,519
104,421,697
1,546,553
10,833,62?
13.466,182
302.179
42,652,855
102,614.844
1,521,334
11,247,162
14,695.749
7.436
2,567,675
3.124,165
174,939
-192,046
2,845,251
2.35
6.22
2.99
11.31
-1.77
21.13
22.005
1,199,339
4.931,018
200,158
-605,581
1,615.684
7.28
2.81
4.81
25.846,362
2,972,278
133,240,337
.
27.464,245
2,557,024
132,636,113
.
.
2,828.144
68,221
6,020,530
10.94
2.30
4.52
1.210,261
483,475
6,624,754
23,979,387
15,534,206
4,279,954
21,206,658
65,000,205
1,306,537
63,693,668
23,414,546.
15,416,351
4,911,095
201629,765
64,371,757
1,234,579
63,137,178
22,309,563
15,169,786
4,249,564
19, 434. 937
61,163,850
1.201,861
59,961,989
32,615,321
96,402
32,711.723
30,507,592
91,209
30.598,801
31,723,878
?7,092_
31,760,970
9,408,711
1,407,576
9,123,621
1,245,349
'324,184
43,852,194
107.545.862
1,721,492
10;64l',581
16,311.433
28.674,506
3,040,499
139,260.867
Increase or decrease : Increase or decrease
since Oct. 3. i960
:since Dec. 31. 1959
Amount
:Percent : Amount
: Percent
564,841
117,855
-631,141 576,893
628,44-8
7 jiff 8
556,490
13.16
-5.38
10.99
4.41
18.91
4.99
oornpa__.son o_" principal items of assets and liabilities ox active na-oionai D a m s
:
:
:
—
oontmueu
(In thoxxsands of dollars)
.
_
_. ; ^ _ o
••-.
o-i : Increase or decrease :Increase or decrease
:
:
1Q60 '
^Q60
^
:since Oct.3t 1?60 :since Dec. 3 l f 19^9
iyou
iyou
iy:>y
:
1
:
Amount : Percent?
Amount : Percent
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand
,
63.131,263
Time.....
36,761,292
Deposits of U. S. Government
3,448,244Postal savings deposits
8,300
Deposits of. States and -oolitical
subdivisions
\
9,297,327
Deposits of banks
10,439,491
Other deposits (certified and
cashiers' checks, etc.)
1,824,934
Total deposits
124,910,851
Bills payable, rediscounts, and other
liabilities for borrowed money
110,590
Other liabilities
3.-41,088
Total liabilities, excluding
capital accounts
128,162,529
CAPITAL ACCOUNTS
Caoital stock *
^Common....]
"3,341,320
Preferred
1,530
Total
3 __2,850
Surplus
5~,446\143
Undivided prof its
2,030,052
Reserves
279,293
Total surplus, profits and
reserves
7.755.438
. Total capital accounts
11.098.338
Total liabilities and
capital accounts
139,260,867
RATIOS: '
Percent
Loans
Capital
U.S.Gov't
& discounts
accounts
securities
to
tototal
to
total
total
deposits
assets
assets
23.49
45.74
8.89
59,025,547
35,972,754
4,087,800
8,297
62,496,399
34,385,356
2,936,037
9,042
4,105,7-6
788,538
-639,556
3
6.96
2.19
-15.65
.04
8,473,965
8,885,686
8,469,237
9,460,445
823,362
1,553,805
9.72
17.49
828,090
979,046
9.78
10.35
1,509.134
117,963,183
1,881,161
119,637,677
315,800
6,947,668
20.93
5.89
-56,227
5,273,174
-2.99
4.41
1,013,323
3.254,378
340,362
2,355.957
-902,733
-113,290
-89.09
-3.48
-229,772
785.131
-67.51
33.33
122,230,884
122,333.996
5.931,645
4.85
5,828,533
4.76
1.05
-_.
1 s_5
3.72
-7.77
11.99
3,306,547
i__0
3.308,077
5,250,859
2,201,129
249,388
3.166,651
3,091
3 Jfe, 742
5.062,084
1,814,637
255.654
34,773
--34,773
195,284
-171,077
29.905
7.70l.3?6
11.009.453
7.132.375
10.302,117
54.112
88,885
133.240,337
. Percent
22.97
47.39
9.33
132.636,113
Percent
^5.21
23.95
8.61
6,020,530
634,864
2,375,936
512,207
-742
174,669
-1.561
173.108
384,059
215,415
23,639
.70
623.113
.81
796,221
- , , , .
4.52 6,624,754
1.02
6.91
17.45
-8.21
5-52
-50.50
5M
7.59
11.87
___£
8__
7___
,
4,22
H0TB: Minus sign denotes decrease.
FOR IMMEDIATE RELEASE
Ap*il 3, 19$1
BREAKDOWN OF FINAL REPORTS OF SUBSCRIPTIONS TO M&RCH ADVANCE REFWfDlKG
The Treasurer Department announced today xne resuxw or T*ne current
advance refunding offer of:
3-3/8$ Treasury Bonds of 1986, due November 15, 1966, in exchange
for 2-1/2$ Treasury Bonds of 1963, due August 15, 1963; and
3-5/8$ Treasury Bonds of 1967, due November 15, 196?, in exchange
for 2-1/4$ Treasury Bonds of 1959-62, due June 15, 1962j
2-1/4$ Treasury Boads of 1959-62, due December 15, 1962$
and 2-5/8$ Treasury Notes of Series A-1963, due February 15^
3363.
Subscriptions, all of which were allotted in full, Here divided
among the several Federal Reserve Districts and the treasury as follows:
FEDERAL RESERVE 3-5/8$ BONDS 3-5/8$ BONDS
DISmilCT
OF 1966
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
Govt. Inv. Accts. and
Federal Reserve Banks
Totals
f
$
6§,184,000
777,602,000
126,402,000
193,778,500
54,662,500
79,435,600
488,676,000
108,574,500
76,302,500
121,100,000
130,458,000
165,906,000
10,765,500
38,989,500
$2,441,854,500
OF 1967
$
128,881,500
1,231,668,500
124,019,500
171,900,000
88,722,500
112,840,500
547,691,000
125,941,500
76,309,500
123,025,000
140,265,500
182,507,500
11,709,506
540,039,000
$3,605,521,000
Total subscriptions aamunt to $6,047 million as coaaap&tfed to $6,017
million of subscriptions reported in the preliminary announcement of
March 24.
TREASURY DEPARTMENT
-*
WASHINGTON. D.C.
FOR IMMEDIATE RELEASE April 3, 1961
BREAKDOWN OF FINAL REPORTS OF SUBSCRIPTIONS TO MARCH ADVANCE REFUNDING
The Treasury Department announced today the results of the current
advance refunding offer of:
3-3/8$ Treasury Bonds of 1966, due November 15, 1966, in exchange
for 2-1/2$ Treasury Bonds of 1963, due August 15, 1963; and
3-5/8$ Treasury Bonds of 1967, due November 15, 1967, in exchange
for 2-1/4$ Treasury Bonds of 1959-62, due June 15, 1962;
2-1/4$ Treasury Bonds of 1959-62, due December 15, 1962;
and 2-5/8$ Treasury Notes of Series A-1963, due February 15,
1963.
Subscriptions, all of which were allotted in full, were divided
among the several Federal Reserve Districts and the Treasury as follows:
FEDERAL RESERVE 3-3/8$ BONDS 3-5/8$ BONDS
DISTRICT
OF 1966
Boston
$
69,184,000
New York
777,602,000
Philadelphia
126,402,000
Cleveland
193,776,500
Richmond
54,662,500
Atlanta
79,435,500
Chicago
umcago
488,676,000
St. Louis
108,574,500
Minneapolis
76,302,500
Kansas City
121,100,000
Dallas
130,458,000
San Francisco
165,906,000
Treasury
10,765,500
Govt. Inv. Accts. and
Federal Reserve Banks
58,989,500
Totals $2,441,834,500 $3,605,521,000
OF 1967
$ 128,881,500
1,231,668,500
124,019,500
171,900,000
88,722,500
112,840,500
547,691,000
125,941,500
76,309,500
123,025,000
140,265,500
182,507,500
11,709,500
540,059,000
Total subscriptions amount to $6,047 million as compared to $6,017
million of subscriptions reported in the preliminary announcement of
March 24.
D-6U
243
FOB » E U
April 3 f 1961*
A, « . IQMSPAP
, April It, 196JL
•*MM4NM*NMMIimil
The Treasury fitpartetist announce last evening that the tender* for two sarlss ©j
Treasury bills, one aeries to be an additional 1 M M of the bills toted J a m a r y %$ JJ|
and the ether aerit* toteadated April 6, 19*1, which were offered on March 29, vara
opened at the Federal feserve Banks on April 3. Tenders were Invited for ?1,100,000,0
or theraahoTjsta, of n ~ d a y bills and for ?500 f 000,000, or thereabouta, of i8f-day bill§
The details of the two saris* are as follows 1
9l~day Traasury bills
l82-d*y f N t n i y biXla
,
Maturing *ft*ly 6, 196l
—taring Oct.br 5. 1961
mas
Approx. E^iiv.
Approx. EqwitT
Anna*!
B«U
-MM—MWMMMM
^laa
Annual Rata
Priea
MMMMN(HMMM_NMMMMNMWN»
98.666 y
?.Jt37*
98.650
99*371
2.1*38*
99.376
2.1*70$ y
a/ Excepting two tendere totaling #565,000
73 percent of the aaount of 91*day bills bid for at the low price waa accepted
16 percent of the amount of 182-day bills bid for at the law pries was accepts*
TOTAL TSINHS APTIIED
District
m
lew Terir
?m km
ACCEPTED
Aypliad For
1,1,36,869,000
22,079,000
f8,JtlO,000
8,535,000
m mmmu*
Accepted
13,69fc,OQO
7it2,li03,000
7,079,000
DXSIMCflf
Applied For
mmmmmmmmmmmmmmmmmm
1.7W,
560,000
063,090
60k,000
7W,000
868,000
?6fc,000
183,000
735,000
917,000
*A8.000
135,008]
mmmmMmmmtm
Cleveland
HlehBond
Atlanta
158,Hi5,000
2l!t»955.000
Chicago
18,713,000
19,7k3
St. Loula
8,303,000
11,573
Minneapolis
20,li92,000
32,992,000
Kansas City
000
Dallas
6b!b33l000
8ii.98S.000
mmmamMmmmtmmmmmmm.
Hast Francisco
11,915,852,000 tl,100,106,000 b/ fl,0i»8,U»6,0Q0
TOTALS
\f Includes $176,81*1*000 noncosxpat itiv« tenders accoptad at the average priaa of W.JT
si,
a/ Includes $37,151,000 isoncompatltiva tandars accoptad at the average prica of ?8.4$6
On a coupon iesue of the same length and for the mm* amount invested, the return #
these bills would provide yields of 2.$2%, far the 91-day bills, and 2.73$,to**&
18?-day bills, interest rates os* bills are quoted in tents 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*4*/
year. In contrast, yields on certificates, notes, and bonds are oepputed in tani
of interest ontoeamount invested, and relate the number of days remaining in •»
interest paysent period to the actual number of days is the period, with aeaiasaai
compoundifir if ssore than one coupon period is involved.
It
/
- / ,s
\y
c
.^
TREASURY DEPARTMENT
&„ v> w
WASHINGTON, D.C.
April 3, 1961-.
MR RELEASE A« M« NEWSPAPERS, Tuesday, April h9 196l.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
Treasury bills, one series to be an additional issue of the bills dated January 5, 196l,
and the other series to be dated April 6, 196l, which were offered on March 29, were
opened at the Federal Reserve Banks on April 3. Tenders were invited for $1,100,000,000
or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 182-day bills.
The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing July 6, 196l
Approx. Equiv.
Price
Annual Rate
99.381*
2.h31%
99.371
2.1*88$
99.376
2.hl0% 1/
182-day Treasury bills
maturing October 5, 196l
Approx. Equiv.
Price
Annual Rate
98.666 a/
2.639$
98.650 ""
2.670$
98.656
2.658$ 1/
a/ Excepting two tenders totaling $565,000
73 percent of the amount of 91-day bills bid for at the low price was accepted
16 percent of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Applied For
Accepted
Applied For
Accepted
Boston
$
2l*, 23*4,000 $
8
l,7U7,00O
$ 1,71*7,000
13,69*1,000
New York
1,^36,869,000
897,160,000
1*18,560,000
7)42,103,000
Philadelphia
22,079,000
8,31*7,000
1,063,000
7,079,000
Cleveland
28,J4lO,000
ll*,60l4,000
9,6014,000
28,lao,ooo
Richmond
8,535,000
71*8,000
71*8,000
8,535,000
Atlanta
21,609,000
6,013,000
1*, 868,000
20,001,000
Chicago
2lli,955,000
66,056,000
32,238,000
i58,i!£,ooo
St. Louis
19,71*3,000
5,1*21*, 000
l4,96U,000
18,7)43,000
Minneapolis
11,573,000
1*,683,000
2,183,000
8,303,000
Kansas City
32,992,000
12,671,000
14,735,000
20,1*92,000
Dallas
9,868,000
2,977,000
2,977,000
9,868,000
San Francisco
81i,985,OOQ
27,716,000
16,1|{48,000
6h,U33,000 b / $1,01*8,11*6,000
$1,100,106,000
TOTALS
,915,852,000
$500,135,000 c/
/ Includes $176,81*1,000 noncompetitive tenders accepted at the average price of 99.376
/includes $37,151,000 noncompetitive tenders accepted at the average price of 98.656
/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.52$, lor the 91-day bills, and 2.73$, 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.
D-65
The Under Secretary cited developments in the automotive
competition between United States and foreign cars, at home arid in
export markets, as an example of the interacting benefits of
competition. He asserted that new United States policies to preserve
the strength of the dollar and strengthen the economies of the
Free World without a resort to protectionism, deserved the cooperative
support of other nations.
He welcomed the visit of Prime Minister Harold Macmillan to
confer with President Kennedy as an opportunity for the United States
and Great Britain to concert their efforts and influence for a dynamic
Atlantic economic community, with far-reaching benefits throughout
the Free World.
oOo
uis* V > £_.
April 4, 1961
FOR IMMEDIATE RELEASE
AFTER 12:Q0 NOON, APRIL 4, 196l.
FUTURE HOLDS PROMISE FOR BUSINESS IN
FREE WORLD, TREASURY OFFICIAL SAYS
Under Secretary of the Treasury Henry H. Fowler today said that
businessmen throughout the Free World have a vital stake in programs
advanced by President Kennedy to strengthen the Atlantic economic
community and provide more effective aid to the newly developing
areas of Asia, Africa and Latin America.
He told members of the British Automobile Manufacturers Associatic
attending the New York Automobile Show, at a luncheon meeting at the
Plaza Hotel in New York:
"The future holds great promise for all within the structure of
the Free World if programs advanced by President Kennedy are fully
supported."
Under Secretary Fowler called attention to three new or improved
Kennedy programs for:
1. Stimulating economic recovery and growth in the
United States.
2. Harmonizing the financial and economic policies
of the industrialized nations of the Free World
to achieve greater growth and stability through
the new Organization for Economic Cooperation
and Development and related institutions.
3. Coordinating increased development assistance to
the emerging economies of Asia, Africa and
Latin America by a cooperative Free World effort,
based upon national development programs forged
by the developing countries themselves.
Concerning the role and stake of all Free World businessmen in
these programs, Under Secretary Fowler said:
"Responsive action by businessmen to the Kennedy programs and
complimentary ones in other nations of the Free World will be a
decisive element in their achievement. By supporting them, businessmer
will help create a climate for developing markets and new opportunities
By participating in the economic processes that are made possible by
these programs, businessmen can contribute to progress as well as
profit."
D-66
- 2•*~ \J '.^
"Responsive action by businessmen to the Kennedy pgrH programs and
complimentary ones in other nations of the Free World will be a decisive ±SL
element in their achievement.
By supporting them, businessmen will help create j_a
a climate for developing markets and new opportunities.
By participating in the
economic processes that are made possible by these programs, businessmen can
contribute to progress as well as profit."
The Under Secretary cited developments in the automotive competition between
United States and foreign cars, at home and in export markets, as an example of
the interacting benefits of conpetition.
He asserted that new United States
policies to preserve the strength of the dollar and strengthen the economies of
the Free World without a resort to protectionism, deserved the cooperative
support of other nations•
He welcomed the visit of Prime Minister Harold Macmillan to confer with
President Kennedy as an opportunity for the United States and Great Britian to
concert their efforts and influence for a dynamic Atlantic econon#%mmunity,
with far-reaching benefits throughout the Free World*
(TREASURY INF0?MATI0N SERVICE LETTERHEAD)
^- «J f
April U, 1961
FOR IMMEDIATE RELEASE UPON DELIVERY
EXPECTED ABOUT NOON, APRIL U, 1961.
Under Secretary of the Treasury Henry H. Fowler today said that
businessmen throughout the Free World have a vital stake in programs advanced
by President Kennedy to strengthen the Atlantic economic coimnunity and provide
more effective aid to the newly developing areas of .'Asia, Africa and Latin
America*
ipciation
He told members of the British Automobile Manufacturer^attending
te New York Automobile Show at the Plaza Hotel in New York:
"The future holds great promise for all within the structure of the
Free World if programs advanced by President Kennedy are fully supported. "
Under Secretary Fowler called attention to three new or imp roved
Kennedy programs for:
1. Stimulating economic recovery and growth in the
United States.
2. Harmonizing the financial and economic policies of the
'of the Free World
industrialized nations/to achieve greater growth and
stability through the new Organization for Economic
Cooperation and Development and related institutions.
3. Coordinating increased development assistance to the
emerging economies of Asia, Africa and Latin America
by a cooperative Free Torld effort, based upon national
development programs forged by the developnmg countries
themselves.
Concerning the role and stake of all Free World businessmen in these
programs, Under Secretary Fowler sSfaJd:
TREASURY DEPARTMENT
__3
.'u. ,."> •SiH.t.Kffma—timr r-~a__i L j^r^_;
WASHINGTON, D.C
April 4, 1961
FOR IMMEDIATE RELEASE
AFTER 12:00 NOON, APRIL 4, 1961.
FUTURE HOLDS PROMISE FOR BUSINESS IN
FREE WORLD, TREASURY OFFICIAL SAYS
Under Secretary of the Treasury Henry H. Fowler today said that
businessmen throughout the Free World have a vital stake in programs
advanced by President Kennedy to strengthen the Atlantic economic
community and provide more effective aid to the newly developing
areas of Asia, Africa and Latin America.
He told members of the British Automobile Manufacturers Association,
attending the New York Automobile Show, at a luncheon meeting at the
Plaza Hotel in New York:
"The future holds great promise for all within the structure of
the Free World if programs advanced by President Kennedy are fully
supported."
Under Secretary Fowler called attention to three new or improved
Kennedy programs for:
1. Stimulating economic recovery and growth in the
United States.
2. Harmonizing the financial and economic policies
of the industrialized nations of the Free World
to achieve greater growth and stability through
the new Organization for Economic Cooperation
and Development and related institutions.
3. Coordinating increased development assistance to
the emerging economies of Asia, Africa and
Latin America by a cooperative Free World effort,
based upon national development programs forged
by the developing countries themselves.
Concerning the role and stake of all Free World businessmen in
these programs, Under Secretary Fowler said:
"Responsive action by businessmen to the Kennedy programs and
complimentary ones in other nations of the Free World will be a
decisive element in their achievement. By supporting them, businessmen
will help create a climate for developing markets and new opportunities.
By participating in the economic processes that are made possible by
these programs, businessmen can contribute to progress as well as
profit."
D-66
9C,
•^ w v
- 2 The Under Secretary cited developments in the automotive
competition between United States and foreign cars, at home and in
export markets, as an example of the interacting benefits of
competition. He asserted that new United States policies to preserve
the strength of the dollar and strengthen the economies of the
Free World without a resort to protectionism, deserved the cooperative
support of other nations.
He welcomed the visit of Prime Minister Harold Macmillan to
confer with President Kennedy as an opportunity for the United States
and Great Britain to concert their efforts and influence for a dynamic
Atlantic economic community, with far-reaching benefits throughout
the Free World.
0O0
Treasury Secretary Douglas Dillon welcomes Dr« Samuel Z. Wester field, Jr.,
Dean of the School of Business Adviinlstration of Atlanta University, to the
#'
Treasury
t
On June 1, Dr. Westerfield will become Associate Director of
the Debt Analysis Staff of the Treasury.
Until then he will serve as a
** .#
consultant on domestic and International monetary affairs e
A
£C3
- 3 from Dunbar High School. He was the recipient of an Anson Phelps
Stokes Scholarship and of fellowships from the Rosenwald Foundatio
and the Social Science Research Council in the years from 1940 to
1944.
Dr. West erf ield was married to Helene Bryant in 1946. T_tey
have two children, Samuel III, aged 14, and Sheila Helene,/£.
oOo
_1 w w
Dr. Westerfield has been an instructorffand jprofessor of economics
at Howard University^West Virginia State College, Lincoln University,
and Atlanta University, as well as guest Lecturer at University
College, Addis Ababa, Ethiopia, and University College, Ibadan,
Nigeria. In 1959-1960 he was visiting professor at the Graduate
School of Business Administration of Harvard University.
Dr. Westerfield has also served as an economist during summer
recesses, with the Bureau of Labor Statistics of the U. S. Department
•J~*I
*
of Labor, the TVA, the War Labor Board 2mdm&m^9*m*mi*
He is a member of the Board of Directors of the
Atlanta Urban League, Chairman of the Research Committee of the
National Business League, .afk& Treasurer of the All-Citizens
Registration Committee.
Born in Chicago, Illinois, November 15, 1919, Dr. Westerfield
received his early education in Washington, D. C. where he graduated
Dr. Westerfield has been Dean of the School of Business
Administration and Professor of Economics at Atlanta University,
Atlanta, Georgia, since 1952. He received his Ph.D. from Harvard
University in 1950 and his MasterTs degree a year earlier from
the same University. In 1939 he was awarded an A.B., Magna Cum Lau
from Howard University in Washington, D. C.
£_ <J _.
"The Treasury is foftunate In obtaining the services of
_
Dr. Westerfield^fc
As one
of the nation1s leading economists, Dr. Westerfield will be
extremely helpful
in
formulation of both
domestic and international financial policy.
11
rs r- ;~*.
FOR RELEASE:
AM's, Thursday,
April 6, 1961
DR. SAMUEL WESTERFIELD, ATLANTA UNIVERSITY DEAN,
NAMED TO KEY POST IN TREASURY DEPARTMENT
Treasury Secretary Douglas Dillon today announced
that Dr. Samuel Z. Westerfield, Jr., Dean of the School of Business
Administration at Atlanta University, will join the Treasury staff
9on June 1 as Associate^ Director of the Debt Analysis Staff in the
Office of the Secretary.
-felua
Until he takes over his new M U M
at the close of the
current academic year, Dr. W^sterfiedl will act
as a consultant
to the Secretary on domestic and international monetary affairs.
/ In announcing the appointment, wr. _*_.-
teeB:gkgk£E:g;£gteB
i n ltetoltodtatiajal 1 1 1 1 1 1 1
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 4, 1961
FOR RELEASE A.M. NEWSPAPERS,
THURSDAY, APRIL 6, 1961.
DR. SAMUEL WESTERFIELD, ATLANTA UNIVERSITY DEAN,
NAMED TO KEY POST IN TREASURY DEPARTMENT
Treasury Secretary Douglas Dillon today announced that
Dr. Samuel Z. Westerfield, Jr., Dean of the School of Business
Administration at Atlanta University, will join the Treasury staff on
June 1 as Associate Director of the Debt Analysis Staff in the Office
of the Secretary.
Until he takes over his new post at the close of the current
academic year, Dr. Westerfield will act as a consultant to the
Secretary on domestic and international monetary affairs.
In announcing the appointment, Mr. Dillon said: "The Treasury
is fortunate in obtaining the services of Dr. Westerfield. As one
of the Nation's leading economists, Dr. Westerfield will be extremely
helpful in the formulation of both domestic and international financial
policy."
Dr. Westerfield has been Dean of the School of Business
Administration and Professor of Economics at Atlanta University,
Atlanta, Georgia, since 1952. He received his Ph.D. from Harvard
University in 1950 and his Master's degree a year earlier from the
same University. In 1939 he was awarded an A.B., Magna Cum Laude
from Howard University in Washington, D. C„
Dr. Westerfield has been an instructor of economics at Howard
University, and a professor of economics at West Virginia State College,
Lincoln University, and Atlanta University, as well as guest Lecturer
at University College, Addis Ababa, Ethiopia, and University College,
Ibadan, Nigeria. In 1959-1960 he was visiting professor at the
Graduate School of Business Administration of Harvard University.
Dr. Westerfield has also served as an economist during summer
recesses, with the Bureau of Labor Statistics of the U.S. Department
of Labor, the TVA, and the War Labor Board. He is a member of the
Board of Directors of the Atlanta Urban League, Chairman of the
Research Committee of the National Business League, and former
Treasurer of the All-Citizens Registration Committee,
D~fi7
a~. CJ 'T
- 2 Born in Chicago, Illinois, November 15, 1919, Dr. Westerfield
received his early education in Washington, D. C. where he graduated
from Dunbar High School. He was the recipient of an Anson Phelps
Stokes Scholarship and of fellowships from the Rosenwald Foundation
and the Social Science Research Council in the years from 1940 to
1944.
Dr. Westerfield was married to Helene Bryant in 1946. They have
two children, Samuel III, aged 14, and Sheila Helene, 9.
oOo
- 3-
from the sale or other disposition of Treasury bills does not have any speci
treatment, as such, under the Internal Revenue Code of 1954. The bills are s
to estate, inheritance, gift or other excise taxes, whether Federal or State,
are exempt from all taxation now or hereafter imposed on the principal or in
thereof by any State, or any of the possessions of the United States, or by a
local taxing authority. For purposes of taxation the amount of discount at w
Treasury bills are originally sold by the United States is considered to be
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the
of discount at which bills issued hereunder are sold is not considered to ac
until such bills are sold, redeemed or otherwise disposed of, and such bills
cluded from consideration as capital assets. Accordingly, the owner of Treas
bills (other than life insurance companies) issued hereunder need include in
income tax return only the difference between the price paid for such bills,
on original issue or on subsequent purchase, and the amount actually receive
upon sale or redemption at maturity during the taxable year for which the re
made, as ordinary gain or loss.
Treasury Department Circular No. 418, Revised, and this notice, prescribe th
terms of the Treasury bills and govern the conditions of their Issue. Copies
the circular may be obtained from any Federal Reserve Bank or Branch.
^0 Q
- 2 -
_1 C 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 except for their own account. Tenders will be received without deposit from incorpo-
rated banks and trust companies and from responsible and recognized dealers in inve
ment 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 b
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
January 12, 1961
July 13$ 1961 )
$3§EJE
183
, ( 91
days remaining until maturity date on
and
- noncompetitive tenders for $100,000 or less for the
_$0&)
-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 respe
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on April 13, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills maturing April 13, 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
TREASURY DEPARTMENT
Washington
April 5, 1961
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
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
p*
cash and in exchange for Treasury bills maturing April 13 9 1961
of $ 1,500,921,000 , as follows:
, in the amount
—m
91 -day bills (to maturity date) to be issued April 13, 1961
,
in the amount of $1,100,000,000 , or thereabouts, representing an additional amount of bills dated January 12, 1961
,
m
and to mature
July 13, 1961
—
^
amount of $$00,112,000
originally issued in the
--
, the additional and original bills
pi?
to be freely interchangeable.
183 -day bills, for $$00,000,000
o r thereabouts, to be dated
p3%
££g£
April 13, 1961
f and to mature October 13, 1961
^
Xfcpgj
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 araouc
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 closir
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 10, 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
JO^ L
y
TREASURY DEPARTMENT
~«r~np-~~-v
_L L '«_
w y '.".•»",••'. .•<•»!• i J>»M<W'KIWJ .'••• i'_.im_nm._Mim-ga
WASHINGTON, D.C.
April 5, 1961
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$1,600,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing April 13, 196l,
in the amount of
$1,500,921,000, as follows:
91-day bills (to maturity date) to be issued April 13, 196l,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated January 12, 1961, and to
mature July 13, 1961,
originally issued in the amount of
$500,112,000,
the additional and original bills to be freely
interchangeable.
183-day bills, for $500,000,000, or thereabouts, to be dated
April 13, 196l,
and to mature October 13, 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, April 10, 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.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
January 12, 196l, (91 days remaining until maturity date on
July 13, 196l;
and noncompetitive tenders for $100,000
or less for the 183-day bills without stated price from any one
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on April 13, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing April 13, 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 loss.
0O0Revised, and this notice,
Treasury Department Circular No. 4l8,
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
|_-__-£S2-_U-_Ea_^^
WASHINGTON, D.C.
April 5, 196l
IMMEDIATE RELEASE
TREASURY DECISION ON PORTLAND CEMENT
UNDER ANTIDUMPING ACT
The Treasury Department has determined that Portland
cement, other than white, nonstaining Portland cement,
from West Germany is not being, nor likely to be, sold
in the United States at less than fair value within the
meaning of the Antidumping Act. Notice of the finding
will be published in the Federal Register.
Appraising officers are being instructed to proceed
with the appraisement of this merchandise from West
Germany without regard to any question of dumping.
The dollar value of Imports of the involved
merchandise received during 1959 was approximately
$1,225,000.
0O0
:£9
- 3Mr. Sagalyn is married to the former Louise Edelman London,
of New York City. They have three children and reside in
Alexandria, Virginia.
0O0
07,j
- 2 -
He helped reorganize that city!s police department and participate
in major criminal and racketeering investigations. He came to
Washington in 1942 to help organize a nation-wide law enforcement
program against prostitution for the Office of Defense Health and
Welfare Services. Later, as an aide to the Chief of the Public
Safety Division of the Office of Military Government in Germany,
Mr. Sagalyn helped direct the reorganization of the German police
system and the administration of the Denazification program.
Born in Springfield, Mass. in 1918, Mr. Sagalyn was graduated
from Oberlin College and the Graduate Institute of International
Studies at Geneva, Switzerland. He enlisted as a private during
World War II and rose to the rank of Captain in the Infantry,
winning four battle stars for service in the European Theatre of
Operations. He has worked on the staff of the "New York Times"
and "Life" Magazine, Since 1957, be has been Assistant Publisher
of the Northern Virginia Sun.'*
t .„.
April 5, 1961
FOR RELEASE: P.M. NEWSPAPERS
THURSDAY, APRIL 6, 1961
ARNOLD SAGALYN NAMED DIRECTOR OF
TREASURY LAW ENFORCEMENT COORDINATION
Arnold Sagalyn/ Assistant Publisher of the "Northern Virginia
Sun", was today appointed Director of Treasury1s Office of Law
Enforcement Coordination by Secretary Douglas Dillon. Mr. Sagalyn
has been associated with law enforcement since 1939.
Mr. Sagalyn will advise the Secretary on law enforcement policy
and coordinate the operations of Treasury's enforcement agencies.
These include the U.S. Secret Service, the Bureau of Narcotics,
the Investigations and Enforcement Division of the Bureau of Custom
Intelligence, Inspection, and Alcohol and Tobacco Tax Divisions of
the Internal Revenue Service, and the Intelligence Division of the
U.S. Coast Guard.
Mr. Sagalynfs background includes service in Cleveland, Ohio,
where he was special assistant to the Director of Public Safety.
•ON
April 5, 1961
FOR RELEASE: P.M. NEWSPAPERS
THURSDAY, APRIL 6, 1961
ARNOLD SAGALYN NAMED DIRECTOR OF
TREASURY LAW ENFORCEMENT COORDINATION
Arnold Sagalyn, former Assistant Publisher of the "Northern
Virginia Sun", was today appointed Director of Treasury's Office
of Law Enforcement Coordination by Secretary Douglas Dillon.
Mr. Sagalyn has been associated with law enforcement since 1939*
Mr. Sagalyn will advise the Secretary on law enforcement policy
and coordinate the operations of Treasury's enforcement agencies.
These include the U.S. Secret Service, the Bureau of Narcotics, the
Investigations and Enforcement Division of the Bureau of Customs,
Intelligence, Inspection, and Alcohol and Tobacco Tax Divisions of
the Internal Revenue Service, and the Intelligence Division of the
U. S. Coast Guard.
Mr. Sagalyn's background includes service in Cleveland, Ohio,
where he was special assistant to the Director of Public Safety.
He helped reorganize that city's police department and participated
in major criminal and racketeering investigations. He came to
Washington in 1942 to help organize a nation-wide law enforcement
program against prostitution for the Office of Defense Health and
Welfare Services. Later, as an aide to the Chief of the Public
Safety Division of the Office of Military Government in Germany,
Mr. Sagalyn helped direct the reorganization of the German police
system and the administration of the Denazification program.
Born in Springfield, Mass,, in 1918, Mr. Sagalyn was graduated
from Oberlin College and the Graduate Institute of International
Studies at Geneva, Switzerland. He enlisted as a private during
World War II and rose to the rank of Captain In the Infantry,
winning four battle stars for service in the European Theatre of
Operations. He has worked on the staff of the "New York Times"
and "Life" Magazine. Since 1957, be has been Assistant Publisher
of the "Northern Virginia Sun."
Mr. Sagalyn is married to the former Louise Edelman London, of
New York City. They have three children and reside in Alexandria,
Virginia.
0O0
D-69
27.?
CONGRESSIONAL
WM««M«MMpMWMIH<i*WlnHlMll^^
J, W. Fulbright, United States Senate
Chairman, Committee on Foreign Relations
Member Committee on Foreign Relations
1, Kilburn, United States House of Representatives
Member Committee on Banking and Currency
Rains, United States House of Representatives
Member Committee on Banking and Currency
ASSISTANT: Pat M. Holt, Consultant to the Senate Foreign
Relations Committee, United States Senate
SENIOR ADVISERS
John X.
Lincoln
Robert H.
Harold W.
, American Ambassador to Braasil
, Consultant, President's task Force on Latin
America, Department of State
f
w w w - * * * , x*w««*»«--»* |
, President, Export-Import Bank of Washington
mmmmmmmmmrmmmmtmm
Dixon Donnelley, Assistant to the Secretary of the Treasury
for Public Affairs
L* Eliot, Special Assistant to the Secretary of the
Charles ft, Harley, Chief, Latin American Division, Office of
International Division, Treasury Department
Ralph V. Korp, Office of International Finance, Treasury Dept.
Herbert K. May,
Edwin C. Kendall, Economic Development Division,
Department of State
Alexander M. Roseuson, Deputy Director, Office of InterAmerican Regional Affairs, Department of Stat
Leonard J. Saccio, Minister, Counselor for Economic Affairs
American Embassy, Rio do Janeiro
Norman M. Ward, Chief, Progrmro Office, Office of Latin America
Operations, International Cooperation
Administration.
-a-
274
the President, who regards the Bank as a major instrument
•
\
for accelerating economic development aad social advanee_ent
•i
in the Americas, has proposed tm the Congress that the new institution administer $394 of the $500 million requested for the
Inter-American Fund for Social Progress.
The Bank ttfH. apply most of these funds on a loan basis
A
with flexible terms, including low interest rates or repayment
in local currency. The Bank's major fields of social development
activity wWMt be land settlement aad Improved land use, housing,
water supply and sanitation. It «Mfe also provide technical
assistance related to the mobilisation of domestic resources.
Members of the U. 8. Delegation to the Rio nesting include]
GOVERNOR
MMMMMMIIMM
Douglas Dillon, Secretary of the Treasury
TEMPORARY ALTEENATE GOVERNORS
John X. Leddy, Assistant Secretary of the Treasury
Edwin K. Martin, Assistant Sooretary of State
Hobert Cutler, llnltSd^f^Sl^IISiffe Director,
Inter-American Development iBank
r\ 7 s
s
I
FOfi RELEASE:
A
DILLON LEAVING FRIDAY TO HEAD U. S. DELEGATION
TO INTER-AMERICAN BANK MEETING IN BR$SIL
Treasury Secretary Douglas Dillon will leave Washington
Friday for Rio de Janeiro, Brazil, where ho will head the
United States delegation to the Second Meeting of the Board
of Governors of the Inter-American Development Bank, from
April 10-14.
The delegation will include key members of the Congress
and ranking officials of the Departments of State and Treasury,
She Export-Import Hank, and the International Cooperation
&dmi nl stmt ion •
The Rio meeting of the Board of Governors ~- on which
the United States and the Bank's nineteen Latin American member nations are represented ~ will provide an opportunity to
M'-'-
review the Bank's policies and operations during the year since
it was organized last February In San Salvador, El Salvador*
- 2-
n -y -v
CONGRESSIONAL ADVISERS
J. W. Fulbright, United States Senate
Chairman, Committee on Foreign Relations
Bourke B. Hickenlooper, United States Senate
Member Committee on Foreign Relations
Clarence E. Kilburn, United States House of Representatives
Member Committee on Banking and Currency
Albert Rains, United States House of Representatives
Member Committee on Banking and Currency
ASSISTANT: Pat M. Holt, Consultant to the Senate Foreign
Relations Committee, United States Senate
SENIOR ADVISERS
John M. Cabot, American Ambassador to Brazil
Lincoln Gordon, Consultant, President's Task Force on Latin
America, Department of State
Robert H. Knight, General Counsel, Treasury Department
Harold F. Linder, President, Export-Import Bank of Washington
ADVISERS
Dixon Donnelley, Assistant to the Secretary of the Treasury
for Public Affairs
Theodore L. Eliot, Special Assistant to the Secretary of the
Treasury
Charles R. Harley, Chief, Latin American Division, Office of
International Finance, Treasury Department
Ralph V. Korp, Office of International Finance, Treasury Dept.
Herbert K. May, Treasury Attache, American Embassy, Rio de
Janeiro
Edwin C. Rendall, Economic Development Division,
Department of State
Alexander M. Rosenson, Deputy Director, Office of InterAmerican Regional Affairs, Department of State
Leonard J. Saccio, Minister, Counselor for Economic Affairs
American Embassy, Rio de Janeiro
Norman M. Ward, Chief, Program Office, Office of Latin American
Operations, International Cooperation
Administration.
0O0
- 3-
mm 278
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 tb
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^
mam
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 Bonks 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
April 17, 1961 ; in cash or other immediately available funds or in a like
face amount of Treasury bills maturing April 15, 1961 . Gash 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
OAT,
»;*:<ra«w:™t:«':
C <J w
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE.
April 6, 1961
,
:iM^:^fii:^.r«C«r^vi;HvM^i«^^ At'
TREASURY TO REFUND $2 BILLION OF ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders for
$2,000,000,000 , or thereabouts, of 565 -day Treasury bills, for cash and i
exchange for Treasury bills maturing April 15, 1961 , in the amount of
$2,000,780,000 , to be issued on a discount basis under competitive and non
—w—
petitive bidding as hereinafter provided. The bills of this series will be dated
April 15, 1961 , and will mature April 15. 1962 > when the face
^
_ - ^
amount will be payable without interest. They will be issued in bearer form
and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,0
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the cl
ing hour, one-thirty o'clock p.m., Eastern Standard time, Wednesday, April
2
-
^
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 tend
price offered must be expressed on the basis of 100, with not more than thr
(Notwithstanding the fact that these bills will
iraals, 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 s
by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders ex
for their own account. Tenders will be received without deposit from incorp
banks and trust companies and from responsible and recognized dealers in i
securities. Tenders from others must be accompanied by payment of 2 percent
for 365 days, the discount rate w i n be computed on a bank discount basis
of 360 days, as is currently the practice on all issues of Treasury bills.
TREASURY DEPARTMENT
o
C
WASHINGTON, D.C.
X ^ > V ^
April 6, 1961
FOR IMMEDIATE RELEASE
TREASURY TO REFUND $2 BILLION OF ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
for $2,000,000,000, or thereabouts, of 365-day Treasury bills, for
cash and in exchange for Treasury bills maturing April 15, 19§1, in
the amount of $2,000,780,000, to be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be dated April 15, 196l, and will mature
April 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 closing hour, one-thirty o'clock p.m., Eastern Standard time,
Wednesday, April 12, 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 responsibli
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
D-71
tenders,
in whole or in part, and his action In any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $400,000 or less without stated price from any one bidder
- 2 will be accepted in full at the average price (in three decimals) of
accepted competitive bids. Settlement for accepted tenders in
accordance with the bids must be made or completed at the Federal
Reserve Bank on April 17, 19&1, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing
April 15, 196l. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par
value of maturing bills accepted in exchange and the issue price of
the new bills.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under
the Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but are exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions
of the United States, or by any local taxing authority. For purposes
of taxation the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills Issued hereunder are sold
Is not considered to accrue until such bills are sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills (other
than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such
bills, whether on original Issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordinary
gain or loss.
Treasury Department Circular No. 4l8, Revised, and this notice,
prescribe the terms of the Treasury bills and govern the conditions
of their issue. Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.
0O0
TREASURY DEPARTMENT
WASHINGTON, D.C
April 10, 1961
Y<M RSIEASE A. M. NEWSPAPERS, Tuesday, April 11. 1961.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
Treasury bills, one series to be an additional issue of the bills dated January 12, 196]
and the other series to be dated April 13, 1961, which were offered on April 5, were
opened at the Federal Reserve Banks on April 10. Tenders were invited for $1,100,000,0<
or thereabouts, of 91-day bills and for $500,000,000, or thereabouts, of 183-day bills.
The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing July 13, 1961
Approx. Equiv.
Price
Annual Rate
99.410
2". 3315
99*399
2.378$
99.403
2.360$ 1/
183-day Treasury bills
maturing October 139 1961
Approx. Equiv.
__dce
Annual Rate
98.708
2.542$
2.561$
98.698
2.556$ 1/
98.701
30 percent of the amount of 91-day bills bid for at the low price was accepted
4l percent of the amount of 183-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
Applied For
Accepted
$
287275", 000
1,447,184,000
3i,45o,ooo
32,415,000
i4,948,ooo
26,481,000
213,802,000
26,652,000
20,129,000
41,445,000
23,916,000
92,836,000
,999,534,000
I
13,575;000
703,524,000
16,450,000
32,415,000
14,009,000
24,081,000
126,902,000
000
24,800,000
15,179,000
41,445,000
18,916,000
,100,233,000
68,936,
Applied For
Accepted
» ^ , 4 3 0 , 0 0 0 $ 4,130,000
926,736,000 400,104,000
6,835,000
1,776,000
19,903,000
16,940,000
5,881,000
1,681,000
5,193,000
3,943,000
87,791,000
4i,34i,ooo
4,772,000
3,677,000
4,569,000
1,469,000
14,308,000
5,018,000
9,082,000
4,507,000
27,515,000
15^460*000
a/ $1,118,015,000 $500,046,000 b/
y Includes $231,959,000 noncompetitive tenders accepted at the average price o
W Includes $49,363,000 noncompetitive tenders accepted at the average price of 98.701
1/ On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.4l$, for the 91-day bills, and 2.63$, for the
183-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 en 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*
D-72
HAVE PARTICIPATED WITH THE J_ANK IN ITS OPERATIONS. I M S , TUU,
IS SOMETHING OF A RECORD FOR AN INTERNATIONAL BANK STILL IN IT'S
INFANCY. THE BANK HAS ALSO MOVED QUICKLY INTO AREAS WHERE ECONOMIC
FRUSTRATION HAS RETARDED THE MARCH OF PROGRESS. IT
HAS
FACED
UP TO HARD PROBLEMS. UDANS TO BREAK THE GRIP OF STAGNATION HAVE
BEEN EXTENDED TO .BOLIVIA, HAITI, PARAGUAY, AND TO THE NORTHEAST
REGION OF OUR HOST COUNTRY, BRAZIL. THERE IS A QUALITY IN THE
BANK'S GROWTH WHICH HAS A SPECIAL SIGNIFICANCE — THE PERVADING
SPIRIT OF UNANIMITY AND BROTHERHOOD IN WHAT THE
BANK DOES^AFTER THOROUGHGOING EXAMINATION AND DISCUSSION OF
COMPLEX ISSUES^ JHE MANAGEMENT AND DIRECTORS HAVE NOT ONCE FAILED TO
ARRIVE AT A DECISION WHICH ALL COULD CONSIDER A WISE AND
FORWARD STEP.
THIS IS A HAPPY AUGURY FOR THE FUTURE SUCCESS OF OUR ALLIANCE FOR
PROGRESS. EARLIER IN MY REMARKS, I SAID THAT WE OF THE UNITED
STATES DO NOT ACCEPT ECONOMIC STAGNATION AS A TOLERABLE CONDITION
FOR THE AMERICASc WE REGARD BOTH ECONOMIC STAGNATION AND SOCIAL
INJUSTICE AS TOTALLY INTOLERABLE. TO US, THEREFORE, ECONOMIC AND
SOCIAL PROGRESS IN THE HEMISPHERE IS NOT MERELY A DREAM IT IS AN
ESSENTIAL STEP IN THE ATTAINMENT OF THE POSSIBLE. WE HAVE THE
ESSENTIAL INSTRUMENTS IN OUR GRASP. LET US HERE RESOLVE TO USE THEM
WISELY AND WELL.
ITEM
GOAL WHICH WE ARE HAPPY
TO NOTE IS WELL ON ITS WAY TO FULFILLMENT
UND'ER THE ABLE LEADERSHIP OF _SR. JORGE' SOL. THE INTER AMERICAN BANK
IS DESTINED TO PLAY A VITAL ROLE IN BOTH THE ECONOMIC AND SOCIAL
DEVELOPMENT SECTORS OF THIS GREAT NEW EFFORT, NOT ONLY AS A LENDER
OF FUNDS, BUT ALSO AS A PROVIDER OF TECHNICAL-ASSISTANCE, AS A
POLICY COORDINATOR WITH OTHER INTERNATIONAL AGENCIES, AND AS A
285
SOURCE OF INFORMATION AND ASSISTANCE TO THE .UNITED &TATES IN THE
OPERATION OF ITS FOREIGN AID PROGRAMS.'JHE jNTER-AMERICAN _ANK
HAS BEEN CHOSEN BY OUR GOVERNMENTS TO CARRY THE PRINCIPAL RESPONSIBILITY FOR ADMINISTERING THE FUND FOR SOCIAL DEVELOPMENT.
P
BELIEVE IN THE MULTILATERAL,-COOPERATIVE CONCEPT WHICH INSPIRED
ITS ORGANIZATION. THE DISTINGUISHED PRESIDENT OF THE BANK,
«__%
•*__•»*
carta
j
FELIPE HERRERA, WHOSE ELOQUENT SPEECH WE HAVE JUST HEARD,
WAS IDEALLY CHOSEN TO DIRECT THE BANK'S EFFORTS IN FULFILLING
THIS RESPONSBILITY. 1JE, TOGETHER WITH THE EXECUTIVE DIRECTORS AND
THE PROFESSIONAL STAFF, ARE MEN OF BROAD EXPERIENCE, INTELLECTUAL
STAMINA, OBJECTIVITY, AND PERSONAL INTEGRITY -- MEN WELL DESERVING
OF THE TRUST REPOSED IN
THEM/OUR
TRUST HAS BEEN SUSTAINED BY THE
BANK'S PERFORMANCE. IN THE SHORT PERIOD OF ITS EXISTENCE THE £ANK
HAS ALREADY APPROVED 50 MILLION DOLLARS IN LOANS TO PRIVATE AND
PUBLIC ENTERPRISES IN EIGHT LATIN AMERICAN COUNTRIES: SIX LOANS
FOR $23,750,000 FROM ITS ORDINARY CAPITAL RESOURCES, AND FOUR
LOANS FOR $26,500,000 FROM ITS FUNDS FOR SPECIAL OPERATIONS.
IT HAS
ALSO PROVIDED TECHNICAL ASSISTANCE TO SEVERAL COUNTRIES GWffffii
THROUGH ITS WIDERANGING MISSIONS. ITS RECORD OF ACCOMPLISHMENT
IS OUTSTANDING. IT HAS GIVEN HIGH PRIORITY TO PROVIDING URGENTLY
NEEDED FUNDS FOR THE ECONOMIC DEVELOPMENT OF SMALL AND MIDDLE-SIZE
PRIVATE ENTERPRISES. TWO OF ITS LOANS MET A NEED WHICH IS BASIC
IN MANY L.ATIN AMERICAN COUNTRIES: INCREASED SUPPLIES OF POTABLE
WATER AND EXPANDED SANITATION. XHESE LOANS PROVIDE GRAPHIC
EXAMPLES OF HOW ECONOMIC(AND SOCIAL PROGRESS CAN BE COMBINED
IN SOUND LOANS. _AS TESTIMONY TO THE SOUNDNESS OF THE BANK'S/DPERATIONS FIFTEEN PRIVATE FINANCIAL INSTITUTIONS OF MY COUNTRY
FOR DISCIPLINE AND SACRIFICE. %___s£___fc» JHESE BURDENS WILL. BEAR x
MOST' HEAVILY UPON THE MORE FAVORED CLASSES OF 'SOCIETY. GREATiAS THE
SACRIFICES MAY BE, I AM CONFIDENT THAT THEY WILL BE MADE. JORm:
THE CHALLENGE WHICH THE AMERICAS FACE.IS CLEAR AND
—
y
UNMISTAKABLE. WE CAN NOT, WE DARE NOT, LET IT GO UNANSWERED.
opC
J£>
£-w '-•
THE VAST EFFORT REQUIRED IN PLANNING, IN SELF-HELP, AND IN THE
CHANELLING OF EXTERNAL RESOURCES INTO DEVELOPMENT, MAKES IT
MANDATORY THAT WE MAKE FULL USE OF OUR INTER-AMERICAN . ,
Inter-American Economic"^and SWBxal Council, and Economic Com_s
MACHINERY. THE BANK^TA-ECOSOC AND ECLAJI EACH MUST PLAY ITS
PART. AN EXCELLENT BEGINNING HAS ALREADY BEEN MADE WITH
THE CREATION OF THE NEW COMMITTEE ON COOPERATION
BY OUR PRESIDENT, .SENOR JELIPE KERRERA, AND HIS
COLLEAGUES, DR. RAUL PREBISH OF ECLA, AND DR. JOSE JORA
OF THE _AS. THE OPPORTUNITY TO ORGANIZE IN CONCRETE TERMS, THE NEW
SUBSTANTIVE PROGRAMS ENVISAGED IN THE .ALLIANCE JOR ^PROGRESS,
WILL BE PROVIDED BY THE FORTHCOMING _SPECIAL .MINISTERIAL MEETING
OF IA-ECOSOC. THE UNITED STATES WILL HAVE SPECIFIC SUGGESTIONS
TO PRESENT AT THAT .MEETING, AND WE WILL WARMLY WELCOME THE SUGGESTIO
"J?
OF OTHERS. MEANWHILE, I SHOULD LIKE TO OUTLINE SOME OF OUR THINKING:
JT MAY, FOR EXAMPLE, BE DESIRABLE TO MAKE USE OF A LIMITED NUMBER
OF SPECIAL WORKING GROUPS IN AREAS WHERE INDIVIDUAL COUNTRY EXPERIENCE CAN BE BENEFICALLY EXCHANGED, OR,WHERE MULTILATERAL CONSULTATIONS MAY BE NEEDED, AS IN THE FORMULATION OF METHODS FOR
EMPLOYING SURPLUS FOOD IN SOCIAL DEVELOPMENT PROJECTS.
WE ATTACH GREAT IMPORTANCE TO THE ANNUAL REVIEW OF ECONOMIC AND
SOCIAL PROBLEMS AND PROGRESS AS ENVISAGED BY THE ACT OF JJPGOTA.
THESE REVIEWS SHOULD PROVIDE BOTH A CONTINUING SENSE OF
DIRECTION AND A STIMULUS FOR EVEN GREATER EFFORTS, THE ALL
IMPORTANT THING IS THAT THERE BE CONTINUOUS AND PRODUCTIVE WORK
FROM WHICH THE MEMBER NATIONS CAN REALLY BENEFIT. .SURVEYS AND
REPORTS SERVE NO USEFUL PURPOSE UNLESS THEY PRODUCE CONCRETE
RESULTS. WE ARE ALSO CONVINCED THAT THE STAFF OF IA-ECOSOC MUST BE
BUILT INTO AN OUTSTANDINGLY COMPETANT AND CREATIVE SECRETARIAT -- A
V,ILL STRIVE TO BRING THIS ABOUT. WE DO NOT FORESEE ANY DIFFICULTY,
FOR I UNDERSTAND THAT MR. THORKIL KRISTENSEN, THE DISTINGUISHED
EUROPEAN STATESMAN, WHO WILL BE THE .SECRETARY GENERAL OF THE OECD,
SHARES THIS VIEW.~^I HAVE SPOKFj/OF THE NEED FOR SELF-HELP AND EFFECTIVE NATIONAL PLANNING IN CARRYING FORWARD THE .ALLIANCE JOR
PROGRESS. JHE PHRASE "SELF-HELP" SHOULD NOT BE INTERPRETED TO
MEAN CONDITIONS IMPOSED UPON A COUNTRY AS THE PRICE OF EXTERNAL
ASSISTANCE. .gJUITE THE CONTRARY. £ELF"HELP IS THE KEY TO THE ENTIRE
DEVELOPMENT PROCESS. .WITHOUT IT,^
(dUTSIDE ASSISTANCE^ULD""BE~TOTALLY INEFFECTIVE. JHE GREAT BULK OF
RESOURCES FOR DEVELOPMENT, HUMAN AND MATERIAL, MUST COME FROM WITHIN
THE DEVELOPING COUNTRIES. EXTERNAL ASSISTANCE CAN BE A CRITICALLY
IMPORTANT SUPPLEMENT TO THEIR OWN EFFORTS. _B,UT IT CAN BE EFFECTIVE
i ONLY WHEN THE DEVELOPING COUNTRIES MAKE FULL USE OF THEIR OWN
RESOURCES ON THEIR OWN BEHALF. JT IS FOR THIS REASON THAT LONG-RANGE
PLANNING AND PROGRAMMING FOR ECONOMIC AND SOCIAL DEVELOPMENT ARE
SO IMPORTANT TO THE CONCEPT OF THE ALLIANCE FOR PROGRESS.
—
«>
-
—
AS WE SEE IT, DEVELOPMENT PLANNING DOES NOT IMPLY REGIMENTATION OF
ECONOMIES THROUGH GOVERNMENTAL CONTROLS. JT DOES MEAN CONSISTENT T*K* *
PROGRAMMING OF PUBLIC INVESTMENT AIMED AT/
^~**s*
(
";,**''»M*fwWK~W-M
BROAD DEVELOPMENT TARGETS —
PROGRAMMING SUPPLEMENTED BY ECONOMIC
AND SOCIAL POLICIES DESIGNED TO ACTIVATE A NATION'S
* ENERGIES AND RESOURCES, INCLUDING THE INDISPENSABLE PRIVATE SECTOR.
IT MEANS GOOD MONETARY MANAGEMENT. U MEANS THE MOBILIZATION OF
EACH COUNTRY'S RESOURCES IN A MANNER BEST CALCULATED TO
BRING INTO THE COMMON ENDEAVOR THE SAVINGS AND EARNINGS OF ALL
THE PEOPLE. XT MEANS THE ENCOURAGEMENT OF PRIVATE ENTERPRISE
THROUGH TAX AND OTHER POLICIES.)
IT MEANS THE BUILDING OF ROADS AND DAMS. IT MEANS THE EXTENSION OF
TfiWfffiTING, DISTRIBUTION AND BANKING SYSTEMS. IT MEANS THE OPENING
UP OF AGRICULTURAL LANDS AND THE REFORMATION OF OUTDATED SYSTEMS
OF LAND TENURE. LET US NOT DECEIVE OURSELVES. THE ADOPTION AND
EXECUTION OF WELL-PLANNED PROGRAMS BASED UPON SELF-HELP WILL CALL
ABOVE THE PRESENT -FLOW OF PUBLIC AND;
w ^«»4'weiffl ^ # ^ & t f J ^ ® 8 S ^ ^
faWttWi* nr»1^^f^at^1Miit._,•;-
PRIVATE CAPITAL, TO BASIC ECONOMIC DEVELOPMENT AS A PART OF THE
ALLIANCE FOR PROGRESS.^PRESIDENT KENNEDY HAS SUBMITTED TO THE .CONGRESS
A NEW OVERALL PROGRAM OF .FOREIGN ECONOMIC .ASSISTANCE TO ASSURE THE
AVAILABILITY OF UNITED STATES PUBLIC CAPITAL FOR THESE,,PURPOSES IN
*Sti»?
_tM*
LATIN AMERICA AS WELL AS IN OTHER DEVELOPING COUNTRIES. THIS ASSISTANCE
WILL BE AVAILABLE, ON A LONG RANGE BASIS, BOTH FOR SPECIFIC
PROJECTSAFOR _ » GENERAL ECONOMIC SUPPORT OF WELL-CONCEIVED
DEVELOPMENT PROGRAMS. TERMS OF REPAYMENT ARE TO BE ADJUSTED
TO NATIONAL ABILITY TO REPAY, AND WILL INCLUDE THE USE OF.
LONG-TERM, INTEREST-FREE LOANS." JE ALSO HOPE THAT THE ^ALLIANCE £0R
PROGRESS WILL LEAD TO AN INCREASE IN DEVELOPMENT ASSISTANCE TOJ.ATIN
AMERICA FROM THE OTHER INDUSTRIALIZED COUNTRIES OF THE FREE WORLD.
TWO WEEKS AGO, IN LONDON, $#&r^§4&%~$~.
~ "
" * "
"
"
GROUP AGREED UPON A SIGNIFICANT DECLARATION OF POLICY. THEY CALLED
FOR AN EXPANSION OF THE AGGREGATE VOLUME OF THE RESOURCES PRESENTLY
FLOWING TO THE DEVELOPING COUNTRIES, FOR AID ON AN ASSURED AND
CONTINUING BASIS, AND FOR GREATER ASSISTANCE IN THE FORM OF GRANTS
AND LOANS ONFAVORABLE TERMS. A LARGER SUPPLY OF EXTERNAL PUBLIC
CAPITAL AND ITS MORE SYSTEMATIC APPLICATION FOR DEVELOPMENT
PROGRAMS SHOULD BRING ABOUT A GREATER FLOW OF FOREIGN PRIVATE
INVESTMENT, PARTICULARLY INVESTMENT IN THE PRODUCTION AND DISTRIBUT
ION OF GOODS AND SERVICES FOR EXPANDING DOMESTIC MARKETS. WHEN
THE NEW ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
"IS ESTABLISHED SOMETIME LATER THIS YEAR, THE ^DEVELOPMENT ASSISTANCE CROUP WILL BECOME A SUBSIDIARY BODY OF THE OECD.
I?
i
THROUGH THE£RGANIZATION OF .AMERICAN STATES , LAT IN _AMER ICA SHOULD
HAVE A CLOSE WORKING RELATIONSHIP WITH THE OECD. THF H M T T ™ CTATITC
.DIVIDUAL, OUR THIRD GOAL, IS IN MANYi'JAYS THE MOST IMPORTANT.
DEVELOPMENT WILL NOT PRODUCE TRUE ECONOMIC PROGRESS IF ITS BENEFITS
ARE RESTRICTED TO THE PRIVILEGED FEW AND DENIED TO THE MANY WHO TODAY
ARE SADLY UNDER PRIVILEGED. J30CIAL EQUITY FOR THE INDIVIDUAL MUST BE
A PRIME TARGET OF OUR ENDEAVOR. OUR SPIRITUAL TRADITIONS DEMAND NO
LESS. .MOREOVER, PEOPLE ARE THE SINGLE MOST POWERFUL FACTOR IN ECONOM
DEVELOPMENT. WITHOUT SOCIAL EQUITY FOR THE INDIVIDUALj' DEMOCRACY
WILL LANGUISH AND FREE GOVERNMENT WILL DISAPPEAR. JW -MOVE
RAPIDLY ToWARDS THESE ImtR-ntLATED GOALS, THE ALLIANCE FOR PROGRESS
PROPOSED BY .PRESIDENT JJENNEDY CALLS-FOR A CONCERTED MAXIMUM EFFORT
OVER THE NEXT DECADE. XHIS WOULD INVOLVE THE FORMULATION BY EACH
LATIN AMERICAN COUNTRY OF ITS OWN LONG-TERM PLANS FOR DEVELOPMENT,
AS WELL AS THE ESTABLISHMENT OF SPECIFIC TARGETS AND PRIORITIES.
THESE PLANS WOULD NOT ONLY "INSPIRE SURGING NATIONAL EFFORTS,
THEY WOULD ALSO PROVIDE SOLID FOUNDATIONS,
FOR THE EFFECTIVE USE OF EXTERNAL ASSISTANCE — FROM THE INTERAMERICAN J3ANK, FROM THE UNITED STATES AND OTHER INDUSTRIALIZED
COUNTRIES, AND FROM THE INTERNATIONAL INSTITUTIONS OF THE TREE
WORLD. XHE NEW _SOCIAL ^DEVELOPMENT .PROGRAM EMBODIED IN THE kOl OF
.BOGOTA WILL BE AN IMPORTANT PART OF THE ALLIANCE FOR PROGRESS.
W ARE CONFIDENT THAT THIS PROGRAM CAN BE STARTED QUICKLY,
WITH THE JJTER-AMERICAN.BANK TAKING A LEADING ROLE. AS YOU KNOW,
PRESIDENT KENNEDY HAS PROPOSED TO OUR CONGRESS THAT, OF THE 500
MILLION DOLARS TO BE PROVIDED AS A FIRST STEP IN IMPLEMENTING SOCIAL
DEVELOPMENT UNDER THE .ACT .OF BOGOTA, 394 MILLION^BE ADMINISTERED
BY THE J3ANK AND SIX MILLION BY TffiTpAS. IN THE NORMAL COURSE OF
OUR LEGISLATIVE PROCESS THESE FUNDS SHOULD BECOME AVAILABLE
WITHIN THE NEXT TWO MONTHS. ^SOCIAL DEVELOPMENT, WE ARE ALL AGREED,
MUST BE ACCOMPANIED BY ECONOMIC DEVELOPMENT.
_________Mt-.^;r- -*©•*! "tW" ..,'-1m
J.LJmilx.irt, rtw
RESOURCES,
BOTH NATIONAL AND INTERNATIONAL, MUST BE
DEVOTED TO THE EXPANSION OF INDUSTRY, AGRICULTURE AND MINING,
TRANSPORT AND POWER, AND COMMERCIAL ENTERPRISE. THE UNITED STATES
IS, iHEREFORE, PREPARED TO &44W"SUBSTANTIAL RESOURCES OVER AND
PURPOSE OF GOVERNMENT -- THEY MUST FORM AN INDISSOLUBLE TRINITY.
ECONOMIC STABILITY IS NOT AN END IN ITSELF. U IS A MEANS' TO
PROMOTE STEADY AND WIDELY-SHARED ECONOMIC GROWTH.JO INDUCE AN ^
ADEQUATE RATE OF SAVINGS, TO CHANNEL INVESTMENT INTO TRULY PROD- BE
UTIVE UNDERTAKINGS, TO STRENGTHEN POPULAR CONFIDENCE IN DEMOCRATIC
PROCESSES, TO ATTRACT FOREIGN ENTERPRISE, IN SHORT TO PROMOTE
A BALANCED DEVELOPMENT OF THE ECONOMY, THERE MUST BE REASONABLE
PRICE STABILITY. .THIS IN TURN REQUIRES EFFECTIVE BUDGET MANAGEMENT
AND TAX ADMINISTRATION. CREDIT POLICIES SHOULD BE DESIGNED TO
FOSTER GROWTH. THEY SHOULD ALSO BE DESIGNED TO AVOID SPECULATIVE
EXCESS. JFOREIGN EXCHANGE POLICIES SHOULD REALISTICALLY RELATE
INTERNAL PRICES AND COST TO WORLD MARKETS. THESE VIEWS,
J^BELIEVE, ARE NOW WELL SETTLED IN THE THINKING OF THOSE RESPONSIBLE
FOR ECONOMIC AND FINANCIAL POLICY IN THE DEVELOPING COUNTRIES.
THE HEAVY LONG-RUN COSTS OF SEVERE INFLATION HAVE BEEN WIDELY
RECOGNIZED. THE ILLUSION THAT SUCH INFLATION CAN PROVIDE A QUICK
AND EASY WAY TO BETTER LIVING STANDARDS HAS BEEN DISPELLED. OF
COURSE ECONOMIC STABILITY BY ITSELF WILL NOT GUARANTEE ECONOMIC
GROWTH. THIS IS ESPECIALLY TRUE IN THE DEVELOPING COUNTRIES,
WHERE BOLD AND POSITIVE EFFORTS MUST BE MADE IN BOTH THE GOVERNMENTAL AND PRIVATE SECTORS TO HELP CREATE THE CONDITIONS FOR GROWTH.
_I_
HAVE
HEARD IT SAID THAT SOME LATIN AMERICANS BELIEVE THE jJNITED
STATES IS CONCERNED ONLY WITH FINANCIAL STABILIZATION PROGRAMS IN
.LATIN AMERICA. JF THERE ARE ANY DOUBTS ON THIS SCORE, LET ME DISPEL
THEM HERE AND NOW: THE UNITED STATES IS CONCERNED, AND DEEPLY
CONCERNED, WITH MUCH MORE THAN STABILITY. WE DO NOT ACCEPT ECONOMIC
STAGNATION AS A TOLERABLE CONDITION FOR THE AMERICAS. DEVELOPMENT
•,. GROWTH ...PROGRESS — BROADLY BASED AND WIDELY SHARED — THESE
MUST BE OUR PRIMARY OBJECTIVES. STABILIZATION AND GROWTH ARE NOT
HETEKNAflVES IN CONFLICT WITH EACH OTHER.
jON THE CONTRARY, THEY ARE MUTUALLY REINFORCING OBJECTIVES WHICH,
WHEN PURSUED SIMULTANEOUSLY, PROMOTE IMPROVEMENT IN LIVING STANDARDS
AT THE MOST RAPID AND CONTINUOUS,RATE POSSIBLE. ^SOCIAL EQUITY FOR TH
Ai .;.OGOTA, LAST FALL, WE JOINED IN LAUNCHING AN UNPRECEDENTED
-—
—*>
7
7
SOCIAL DEVELOPMENT PROGRAM FOR LATIN AMERICA, A PROGRAM WHICH
SUBSTANTIALLY ENLARGED THE RESPONSIBILITIES OF THE J.ANK. THE
STASIS NOW SET FOR US TO JOIN TOGETHER AGAIN' IN A VAST, EXPANDED
EFFORT TO ACHIEVE OUR GOALS THROUGH PRACTICAL AND CONCRETE
MEASURES AFFECTING ALL ASPECTS OF ECONOMIC AND SOCIAL LIFE. OQ,
a
*• ^ '
PRESIDENT JANIO QUADROS IN HIS MESSAGE LAST MONTH TO THE NATIONAL
CONGRESS STATED: "AS WAS RECOGNIZED BY THE ACT OF BOGOTA, IN *
Si
WHICH THE MAJOR PRACTICAL AND THEORETICAL POINTS OF OPERATION .PAN
AMERICA WERE CONSECRATED, THE SOLUTION OF THE PROBLEMS WHICH
AFFLICT THE CONTINENT WILL DEPEND SUBSTANTIALLY ON ECONOMIC
o
PROGRESS. THAT ECONMIC PROGRESS WILL NOT BE STIMULATED UNTIL
THE GOVERNMENTS OF AMERICA DECIDE TO PASS FROM THE PLANE OF
THEORETICAL FORMULATIONS TO THE TERRAIN OF THE PRACTICAL EXECUTION
OF ADEQUATE MEASURES." TO "PASS FROM THE PLANE OF
THEORETICAL FORMULATIONS TO THE TERRAIN OF THE PRACTICAL
EXECUTION OF ADEQUATE MEASURES" — AND TO DO SO ON A COMPREHENSIVE
SCALE: THIS IS THE VERY PURPOSE OF THE ALIANZA PARA EL PROGRESO
«_»
Bit*"
(DO*
PROPOSED BY .PRESIDENT JENNEDY. IN PRESIDENT KENNEDY'S WORDS:
"IF WE ARE TO MEET A PROBLEM SO STAGGERING IN ITS DIMENSION,
OUR APPROACH MUST ITSELF BE EQUALLY BOLD --AN APPROACH CONSISTENT
WITH THE MAJESTIC CONCEPT OF OPERATION PAN AMERICA. THEREFORE,
~
y
_ HAVE CALLED ON ALL THE PEOPLE OF THE HEMISPHERE TO JOIN IN
A NEW ALLIANCE FOR PROGRESS -- 4, VAST COOPERATIVE EFFORT,
UN$PARLLELED IN MAGNITUDE AND NOBILITY OF PURPOSE, TO SATISFY
THE BASIC NEEDS OF THE .AMERICAN PEOPLE FOR HOMES, WORK AND
LAND, HEALTH AND SCHOOLS — TECHO, TRABAJO Y TIERRA, SALUD Y
ESCUELAV^HAT ARE THE ECONOMIC AND SOCIAL GOALS WE MUST PURSUE
IN CARRYING FORWARD AN ALLIANCE FOR PROGRESS? X THINK THESE GOALS
X7TN BE DEFINED AS GROWTH, STABILITY, AND SOCIAL EQUITY FOR
THE INDIVIDUAL. THESE THREE GOALS GO HAND IN HAND. JJ\EY ARE NOT
ISOLATED OBJECTIVES. INDEED, IF THEY ARE TO SERVE THE PEOPLE — AND IN
i
OUR HEMISPHERE THE WELL-BEING OF THE PEOPLE is THE SUPREME
TEXT FOLLOWS)/MR. CHAIRMAN, PRESIDENT HERRERA, FELLOW GOVERNORS:
IT IS A SPECIAL PLEASURE FOR ME TO MEET WITH YOU IN MY NEW
CAPACITY AS A GOVERNOR OF THE INTER-AMERICAN DEVELOPMENT JBANK. \
THE CONCEPT OF THE £ANK AS A VITAL INSTRUMENT OF JNTER-AMERICAN
COOPERATION HAS BEEN CLOSE TO MY HEART SINCE 1958, WHEN I HAD
THE HIGH PRIVILEGE OF INFORMING THE .INTER-.AMERICAN ECONOMIC AND
SOCIAL COUNCIL OF UNITED STATES SUPPORT FOR THIS NEW AND LONG
DREAMED-OF JOINT VENTURE.
WE ARE ALL GRATEFUL TO THE GOVERNMENT AND THE PEOPLE OF J3RAZIL
FOMNVITING US TO THIS GRACIOUS AND HOSPITABLE CITY OF RIO
DE JANEIRO. THE FAME OF RIO AS A WORLD METROPOLIS IS TOO WELL
ESTABLISHED FOR US TO ENRICH IT FURTHER BY OUR REMARKS. BUT
WE CAN AND DO EXTEND OUR WARM THANKS TO THE FRIENDLY PEOPLE OF
THIS LOVELY CITY FOR MAKING OUR STAY SO VERY PLEASANT.
,I_ALSO CANNOT FAIL TO CONGRATULATE OUR jC.HAIRMAN, THE DISTINGUISHED
MINISTER OF FINANCE OF BRAZIL, FOR THE INSPIRATION WHICH HE HAS
GIVEN TO OUR DELIBERATIONS BY THE WISDOM OF HIS WORDS. U IS
FITTING THAT THE FIRST BIRTHDAY OF THE BANK IS BEING CELEBRATED
HERE IN BRAZIL, WHOSE GENIUS GAVE US THE NOBLE CONCEPT OF
OPERACAO PANAMERICANA. OPERATION PAN AMERICA, BORN OF ONRUSHING
SOCIAL CHANGE AND THE AWAKENING ASPIRATIONS OF THE PEOPLE,
SPEAKS TO THE HEARTS OF THE MEN AND WOMEN OF THE .AMERICAS.
IT IS A SPIRITUAL CALL TO ACTION -- ACTION TO RAISE THE LIVING
STANDARDS OF THE MANY MILLIONS WHO NOW STRUGGLE IN POVERTY AND
(
TO GIVE THEIR LIVES REAL MEANING INyv \\
l*'
TERMS OF PERSONAL FREEDOM- AND INDIVIDUAL DIGNITY. MORE THAN A
CENTURY AGO, DEMOCRACY RAISED ITS VOICE THROUGHOUT LATIN AMERICA
IN A REVOLUTIONARY GRITO FOR LIBERTY. OPERATION PAN AMERICA IS
THE GRITO OF THE 20TH CENTURY — AN INSISTENT AND INEXORABLE
DEMAND FOR LIBERATION FROM THE HUMAN MISERY CREATED BY CRUSHING
ECONOMIC AND SOCIAL CONDITIONS. £HE GOVERNMENTS AND THE PEOPLES
OF THE HEMISPHERE ARE RESPONDING TO THE CALL. AT SAN SALVADOR,
A YEAR AGO, WE JOINED IN INAUGURATING THE INTER-_MEflICAN__ANK.
Ji"f
V
V
HAVE PARTICIPATED WITH THE BANK IN ITS OPERATIONS. THIS, TOO,
IS SOMETHING OF A RECORD FOR AN INTERNATIONAL BANK STILL IN ITS
INFANCY. THE BANK HAS ALSO MOVED QUICKLY INTO AREAS WHERE ECONOMIC
FRUSTRATION HAS RETARDED THE MARCH OF PROGRESS. IT HAS FACED
UP TO HARD PROBLEMS. LOANS TO BREAK THE GRIP OF STAGNATION HAVE
BEEN EXTENDED TO BOLIVIA, HAITI, PARAGUAY, AND TO THE NORTHEAST
REGION OF OUR HOST COUNTRY,
BRAZIL. THERE IS A QUALITY IN THE
BANK'S GROWTH WHICH HAS A SPECIAL SIGNIFICANCE — THE PERVADING
SPIRIT OF UNANIMITY AND BROTHERHOOD IN WHAT THE
BANK D0ES9 AFTER THOROUGHGOING EXAMINATION AND DISCUSSION OF
COMPLEX ISSUES, THE MANAGEMENT AND DIRECTORS HAVE NOT ONCE FAILED TO
ARRIVE AT A DECISION WHICH ALL COULD CONSIDER A WISE AND
FORWARD STEP.
THIS IS A HAPPY AUGURY FOR THE FUTURE SUCCESS OF OUR ALLIANCE FOR
PROGRESS. EARLIER IN MY REMARKS, I SAID THAT WE OF THE UNITED
STATES DO NOT ACCEPT ECONOMIC STAGNATION AS A TOLERABLE CONDITION
FOR THE AMERICAS. WE REGARD BOTH ECONOMIC STAGNATION AND SOCIAL
INJUSTICE AS TOTALLY INTOLERABLE. TO US, THEREFORE, ECONOMIC AND
SOCIAL PROGRESS IN THE HEMISPHERE IS NOT MERELY A DREAM IT IS AN
ESSENTIAL STEP IN THE ATTAINMENT OF THE POSSIBLE. WE HAVE THE
ESSENTIAL INSTRUMENTS IN OUR GRASP. LET US HERE RESOLVE TO USE THEM
WISELY AND WELL.
ITEM
GOAL WHICH WE ARE HAPPY
TO NOTE IS WELL ON ITS WAY IU i u u i U " B i
UNDER THE ABLE LEADERSHIP OF SR. JORGE SOL. THE INTER-AMERICAN BANK
IS DESTINED TO PLAY A VITAL ROLE IN BOTH THE ECONOMIC AND SOCIAL
DEVELOPMENT SECTORS OF THIS GREAT NEW EFFORT, NOT ONLY AS A LENDER
OF FUNDS, BUT ALSO AS A PROVIDER OF TECHNICAL ASSISTANCE, AS A
POLICY COORDINATOR WITH OTHER INTERNATIONAL AGENCIES, AND AS A
SOURCE OF INFORMATION AND ASSISTANCE TO THE UNITED STATES IN THE
OPERATION OF ITS FOREIGN AID PROGRAMS. THE INTER-AMERICAN BANK
HAS BEEN CHOSEN BY OUR GOVERNMENTS TO CARRY THE PRINCIPAL RESPONSIBILITY FOR ADMINISTERING THE FUND FOR SOCIAL DEVELOPMENT.
WE BELIEVE IN THE MULTILATERAL, COOPERATIVE CONCEPT WHICH INSPIRED
ITS ORGANIZATION. THE DISTINGUISHED PRESIDENT OF THE BANK,
FELIPE HERRERA, WHOSE ELOQUENT SPEECH WE HAVE JUST HEARD,
WAS IDEALLY CHOSEN TO DIRECT THE BANK'S EFFORTS IN FULFILLING
THIS RESPONSBILITY. HE, TOGETHER WITH THE EXECUTIVE DIRECTORS AND
m
THE PROFESSIONAL STAFF, ARE MEN OF BROAD EXPERIENCE, INTELLECTUAL
STAMINA, OBJECTIVITY, AND PERSONAL INTEGRITY — MEN WELL DESERVING
OF THE TRUST REPOSED IN THEM. OUR TRUST HAS BEEN SUSTAINED BY THE
BANK'S PERFORMANCE. IN'THE SHORT PERIOD OF ITS EXISTENCE THE BANK
HAS ALREADY APPROVED 50 MILLION DOLLARS IN LOANS TO PRIVATE AND
PUBLIC ENTERPRISES IN EIGHT LATIN AMERICAN COUNTRIES: SIX LOANS
FOR $23,750,000 FROM ITS ORDINARY CAPITAL RESOURCES, AND FOUR
LOANS FOR $26,500,000 FROM ITS FUNDS FOR SPECIAL OPERATIONS. IT HAS
ALSO PROVIDED TECHNICAL ASSISTANCE TO SEVERAL COUNTRIES COUNTRIES
THROUGH ITS WIDERANGING MISSIONS. ITS RECORD OF ACCOMPLISHMENT
IS OUTSTANDING. IT HAS GIVEN HIGH PRIORITY TO PROVIDING URGENTLY
NEEDED FUNDS FOR THE ECONOMIC DEVELOPMENT OF SMALL AND MIDDLE-SIZE
PRIVATE ENTERPRISES. TWO OF ITS LOANS MET A NEED WHICH IS BASIC
IN MANY LATIN AMERICAN COUNTRIES* INCREASED SUPPLIES OF POTABLE
WATER AND EXPANDED SANITATION. THESE LOANS PROVIDE GRAPHIC
EXAMPLES OF HOW ECONOMIC AND SOCIAL PROGRESS CAN BE COMBINED
IN SOUND LOANS. AS TESTIMONY TO THE SOUNDNESS OF THE BANK'SS
OPERATIONS FIFTEEN PRIVATE FINANCIAL INSTITUTIONS OF MY COUNTRY
FOR DISCIPLINE AND SACRIFICE, g,"".-,$ :-3 , THESE BUKDENS WILL BEAR
MOST HEAVILY UPON THE MORE FAVORED CLASSES OF SOCIETY. GREAT AS THESE
SACRIFICES MAY BE, I AM CONFIDENT THAT THEY WILL BE MADE. FOR
THE CHALLENGE WHICH THE AMERICAS FACE IS CLEAR AND
UNMISTAKABLE. WE CAN NOT, WE DARE NOT, LET IT GO UNANSWERED.
THE VAST EFFORT REQUIRED IN PLANNING, IN SELF-HELP, AND IN THE
CHANELLING OF EXTERNAL RESOURCES INTO DEVELOPMENT, MAKES IT
MANDATORY THAT WE MAKE FULL USE OF OUR INTER-AMERICAN
MACHINERY. THE BANK, IA-ECOSOC AND ECLAJ EACH MUST PLAY ITS
PART. AN EXCELLENT BEGINNING HAS ALREADY BEEN MADE WITH
THE CREATION OF THE NEW COMMITTEE ON COOPERATION
BY OUR PRESIDENT, SENOR FELIPE HERRERA, AND HIS
COLLEAGUES, DR. RAUL PREBISH OF ECLA, AND DR. JOSE MORA
OF THE OAS. THE OPPORTUNITY TO ORGANIZE IN CONCRETE TERMS, THE NEW
SUBSTANTIVE PROGRAMS ENVISAGED IN THE ALLIANCE FOR PROGRESS,
WILL IE PROVIDED BY THE FORTHCOMING SPECIAL MINISTERIAL MEETING
OF IA-ECOSOC. THE UNITED STATES WILL HAVE SPECIFIC SUGGESTIONS
TO PRESENT AT THAT MEETING, AND WE WILL WARMLY WELCOME THE SUGGESTIONS
OF OTHERS. MEANWHILE, I SHOULD LIKE TO OUTLINE SOME OF OUR THINKING:
IT MAY, FOR EXAMPLE, BE DESIRABLE TO MAKE USE OF A LIMITED NUMBER
OF SPECIAL WORKING GROUPS IN AREAS WHERE INDIVIDUAL COUNTRY EXPERIENCE CAN BE BENEFICALLY EXCHANGED, OR WHERE MULTILATERAL CONSULTATIONS MAY BE NEEDED, AS IN THE FORMULATION OF METHODS FOR
EMPLOYING SURPLUS FOOD IN SOCIAL DEVELOPMENT PROJECTS.
WE ATTACH GREAT IMPORTANCE TO THE ANNUAL REVIEW OF ECONOMIC AND
SOCIAL PROBLEMS AND PROGRESS AS ENVISAGED BY THE ACT OF BOGOTA.
THESE REVIEWS SHOULD PROVIDE BOTH A CONTINUING SENSE OF
DIRECTION AND A STIMULUS FOR EVEN GREATER EFFORTS. THE ALL
IMPORTANT THING IS THAT THERE BE CONTINUOUS AND PRODUCTIVE WORK
"ROM WHICH THE MEMBER NATIONS CAN REALLY BENEFIT. SURVEYS AND
REPORTS SERVE NO USEFUL PURPOSE UNLESS THEY PRODUCE CONCRETE
JESULTS. WE ARE ALSO CONVINCED THAT THE STAFF OF IA-ECOSOC MUST BE
5UILT INTO AN OUTSTANDINGLY COMPETANT AND CDITATT,^
ILL STRIVE TO BRING THIS ABOUT. WE D O N 5 T FORESEE ANY DIFFICULTY,
FOR I UNDERSTAND THAT MR. THORKIL KRISTENSEN, THE DISTINGUISHED
EUROPEAN STATESMAN, WHO WILL BE THE SECRETARY GENERAL OF THE OECD,
SHARES THIS VIEW. I HAVE SPOKE OF THE NEED FOR SELF-HELP AND EFFECTIVE NATIONAL PLANNING IN CARRYING FORWARD THE ALLIANCE FOR
PROGRESS. THE PHRASE "SELF-HELP" SHOULD NOT BE INTERPRETED TO
MEAN CONDITIONS IMPOSED UPON A COUNTRY AS THE PRICE OF EXTERNAL
ASSISTANCE. QUITE THE CONTRARY. SELF-HELP IS THE KEY TO THE ENTIRE
DEVELOPMENT PROCESS. WITHOUT IT,
OUTSIDE ASSISTANCE WOULD BE TOTALLY INEFFECTIVE. THE GREAT BULK OF
.SOURCES FOR DEVELOPMENT, HUMAN AND MATERIAL, MUST COME FROM WITHIN
THE DEVELOPING COUNTRIES. EXTERNAL ASSISTANCE CAN BE A CRITICALLY
IMPORTANT SUPPLEMENT TO THEIR OWN EFFORTS. BUT IT CAN BE EFFECTIVE
DNLY WHEN THE DEVELOPING COUNTRIES MAKE FULL USE OF THEIR OWN
RESOURCES ON THEIR OWN BEHALF. IT IS FOR THIS REASON THAT LONG-RANGE
PLANNING AND PROGRAMMING FOR ECONOMIC AND SOCIAL DEVELOPMENT ARE
SO IMPORTANT TO THE CONCEPT OF THE ALLIANCE FOR PROGRESS.
AS WE SEE IT, DEVELOPMENT PLANNING DOES NOT IMPLY REGIMENTATION OF
ECONOMIES THROUGH GOVERNMENTAL CONTROLS. IT DOES MEAN CONSISTENT
PROGRAMMING OF PUBLIC INVESTMENT AIMED AT
BROAD DEVELOPMENT TARGETS —
PROGRAMMING SUPPLEMENTED BY ECONOMIC
AND SOCIAL POLICIES DESIGNED TO ACTIVATE A NATION'S
ENERGIES AND RESOURCES, INCLUDING THE INDISPENSABLE PRIVATE SECTOR.
IT MEANS GOOD MONETARY MANAGEMENT. IT MEANS THE MOBILIZATION OF
i
EACH COUNTRY'S RESOURCES IN A MANNER BEST CALCULATED TO
BRING INTO THE COMMON ENDEAVOR THE SAVINGS AND EARNINGS OF ALL
THE PEOPLE. IT MEANS THE ENCOURAGEMENT OF PRIVATE ENTERPRISE
THROUGH TAX AND OTHER POLICIES.
IT MEANS THE BUILDING OF ROADS AND DAMS. IT MEANS THE EXTENSION OF
MARKETING, DISTRIBUTION AND BANKING SYSTEMS. IT MEANS THE OPENING
UP OF AGRICULTURAL LANDS AND THE REFORMATION OF OUTDATED SYSTEMS
OF LAND TENURE. LET US NOT DECEIVE OURSELVES. THE ADOPTION AND
EXECUTION OR WELL-PLANNED PROGRAMS BASED UPON SELF-HELP WILL CALL
ABOVE THE PRESENT FLOW OF PUBLIC AND
PRIVATE CAPITAL, TO BASIC ECONOMIC DEVELOPMENT AS A PART OF THE
ALLIANCE FOR PROGRESS. PRESIDENT KENNEDY HAS SUBMITTED TO THE CONGRESS
A NEW OVERALL PROGRAM OF FOREIGN ECONOMIC ASSISTANCE TO ASSURE THE
AVAILABILITY OF UNITED STATES PUBLIC CAPITAL FOR THESE PURPOSES IN
LATIN AMERICA AS WELL AS IN OTHER DEVELOPING COUNTRIES. THIS ASSISTANCE
WILL BE AVAILABLE, ON A LONG RANGE BASIS, BOTH FOR SPECIFIC
PROJECTS FOR FOR GENERAL ECONOMIC SUPPORT OF WELL-CONCEIVED
DEVELOPMENT PROGRAMS. TERMS OF REPAYMENT ARE TO BE ADJUSTED
TO NATIONAL ABILITY TO REPAY, AND WILL INCLUDE THE USE OF
LONG-TERM, INTEREST-'
STAR FROMM"LOG-TERM INTEREST ETC
LONG-TERM, INTEREST-FREE LOANS. WE ALSO HOPE THAT THE ALLIANCE FOR
PROGRESS WILL LEAD TO AN INCREASE IN DEVELOPMENT ASSISTANCE TO LATIN
AMERICA FROM THE OTHER INDUSTRIALIZED COUNTRIES OF THE FREE WORLD.
TWO WEEKS AGO, IN LONDON, 5#3 .3.?34 9! 5#3 $3|3)90.3,5 -g5-,*3
GROUP AGREED UPON A SIGNIFICANT DECLARATION OF POLICY. THEY CALLED
FOR AN EXPANSION OF THE AGGREGATE VOLUME OF THE RESOURCES PRESENTLY
FLOWING TO THE DEVELOPING COUNTRIES, FOR AID ON AN ASSURED AND
CONTINUING BASIS, AND FOR GREATER ASSISTANCE IN THE FORM OF GRANTS
AND LOANS ONFAVORABLE TERMS. A LARGER SUPPLY OF EXTERNAL PUBLIC
CAPITAL AND ITS MORE SYSTEMATIC APPLICATION FOR DEVELOPMENT
PROGRAMS SHOULD BRING ABOUT A GREATER FLOW OF FOREIGN PRIVATE
INVESTMENT, PARTICULARLY INVESTMENT IN THE PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES FOR EXPANDING DOMESTIC MARKETS. WHEN
THE NEW ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
IS ESTABLISHED SOMETIME LATER THIS YEAR, THE DEVELOPMENT ASSISTANCE GROUP WILL BECOME A SUBSIDIARY BODY OF THE OECD.
THROUGH TMRORGANIZATIOM.OF AMERICAN STATES, LATIN AMERICa anvil*.*
HAVE
A CLOSE WORKING
RFTATTHMQVITP
WITH-THF nxrnn ^,TT- ,...
WJ.IH IHE OECD. THE UNITED
STATES
V
.DIVIDUAL, OUR THIRD GOAL, IS IN NANYWAYS THE MOST IHPOnrn..
DEVELOPMENT WILL NOT PRODUCE TRUE ECONOMIC PROGRESS IF ITS BENEFITS
ARE RESTRICTED TO THE PRIVILEGED FEW AND DENIED TO THE MANY WHO TODAY
ARE SADLY UNDER PRIVILEGED. SOCIAL EQUITY FOR THE INDIVIDUAL MUST BE
A PRIME TARGET OF OUR ENDEAVOR. OUR SPIRITUAL TRADITIONS DEMAND NO
^
~ ™ m r- ADC TUT STNCLE MOST POWERFUL FACTOR IN ECONOMIC
LESS. MOREOVER, PEOPLE ARE THE SINGLt uvo*
„„,.. r-m.TTv rnp THE INDIVIDUAL. DEMOCRACY
DEVELOPMENT. WITHOUT SOCIAL EQUITY FOR iHL im/AVAuu ,
WILL LANGUISH AND FREE GOVERNMENT WILL DISAPPEAR. THE MOVE
RAPIDLY TOWARDS THESE INTER-RELATED GOALS, THE ALLIANCE FOR PROGRESS
PROPOSED BY PRESIDENT KENNEDY CALLS FOR A CONCERTED MAXIMUM EFFORT
OVER THE NEXT DECADE. THIS WOULD INVOLVE THE FORMULATION BY EACH
LATIN AMERICAN COUNTRY OF ITS OWN LONG-TERM PLANS FOR DEVELOPMENT,
AS WELL AS THE ESTABLISHMENT OF SPECIFIC TARGETS AND PRIORITIES.
THESE PLANS WOULD NOT ONLY INSPIRE SURGING NATIONAL EFFORTS,
THEY WOULD ALSO PROVIDE SOLID FOUNDATIONS
FOR THE EFFECTIVE USE OF EXTERNAL ASSISTANCE —
FROM THE INTER-
AMERICAN BANK, FROM THE UNITED STATES AND OTHER INDUSTRIALIZED
COUNTRIES, AND FROM THE INTERNATIONAL INSTITUTIONS OF THE FREE
WORLD, THE NEW SOCIAL DEVELOPMENT PROGRAM EMBODIED IN THE ACT OF
BOGOTA WILL BE AN IMPORTANT PART OF THE ALLIANCE FOR PROGRESS.
WE ARE CONFIDENT THAT THIS PROGRAM CAN BE STARTED QUICKLY,
WITH THE INTER-AMERICAN BANK TAKING A LEADING ROLE, AS YOU KNOW,
PRESIDENT KENNEDY HAS PROPOSED TO OUR CONGRESS THAT, OF THE 500
MILLION DOLARS TO BE PROVIDED AS A FIRST STEP IN IMPLEMENTING SOCIAL
DEVELOPMENT UNDER THE ACT OF BOGOTA, 39 4 MILLION BE ADMINISTERED
BY THE BANK AND SIX MILLION BY THE OAS. IN THE NORMAL COURSE OF
OUR LEGISLATIVE PROCESS THESE FUNDS SHOULD BECOME AVAILABLE
WITHIN THE NEXT TWO MONTHS. SOCIAL DEVELOPMENT, WE ARE ALL AGREED,
MUST BE ACCOMPANIED BY ECONOMIC DEVELOPMENT.
PLANNING AND RESOURCES, BOTH NATIONAL AND INTERNATIONAL, MUST BE
DEVOTED TO THE EXPANSION OF INDUSTRY, AGRICULTURE AND MINING,
TRANSPORT AND POWER, AND COMMERCIAL ENTERPRISE. THE UNITED STATES
IS. THEREFORE. PREPARED TO FJ&HftE SUBSTANTIAL RESOURCES OVER AND
PURPOSE OF GOVERNMENT —
THEY MUST FORM AN INDISSOLUBLE TRINITY.
ECONOMIC STABILITY IS NOT AN END IN ITSELF. IT IS A MEANS TO
PROMOTE STEADY AND WIDELY-SHARED ECONOMIC GROWTH. TO INDUCE AN
ADEQUATE RATE OF SAVINGS, TO CHANNEL INVESTMENT INTO TRULY PRODUTIVE UNDERTAKINGS, TO STRENGTHEN POPULAR CONFIDENCE IN DEMOCRATIC
PROCESSES, TO ATTRACT FOREIGN ENTERPRISE, IN SHORT TO PROMOTE
A BALANCED DEVELOPMENT OF THE ECONOMY, THERE MUST BE REASONABLE
PRICE STABILITY. THIS IN TURN REQUIRES EFFECTIVE BUDGET MANAGEMENT
AND TAX ADMINISTRATION. CREDIT POLICIES SHOULD BE DESIGNED TO
FOSTER GROWTH. THEY SHOULD ALSO BE DESIGNED TO AVOID SPECULATIVE
EXCESS. FOREIGN EXCHANGE POLICIES SHOULD REALISTICALLY RELATE
INTERNAL PRICES AND COST TO WORLD MARKETS. THESE VIEWS,
I BELIEVE, ARE NOW WELL SETTLED IN THE THINKING OF THOSE RESPONSIBLE
FOR ECONOMIC AND FINANCIAL POLICY IN THE DEVELOPING COUNTRIES.
THE HEAVY LONG-RUN COSTS OF SEVERE INFLATION HAVE BEEN WIDELY
RECOGNIZED. THE ILLUSION THAT SUCH INFLATION CAN PROVIDE A QUICK
AND EASY WAY TO BETTER LIVING STANDARDS HAS BEEN DISPELLED. OF
COURSE ECONOMIC STABILITY BY ITSELF WILL NOT GUARANTEE ECONOMIC
GROWTH. THIS IS ESPECIALLY TRUE IN THE DEVELOPING COUNTRIES,
WHERE BOLD AND POSITIVE EFFORTS MUST BE MADE IN BOTH THE GOVERNMENTAL AND PRIVATE SECTORS TO HELP CREATE THE CONDITIONS FOR GROWTH.
I HAVE HEARD IT SAID THAT SOME LATIN AMERICANS BELIEVE THE UNITED
STATES IS CONCERNED ONLY WITH FINANCIAL STABILIZATION PROGRAMS IN
LATIN AMERICA. IF THERE ARE ANY DOUBTS ON THIS SCORE, LET ME DISPEL
THEM HERE AND NOW: THE UNITED STATES IS CONCERNED, AND DEEPLY
CONCERNED, WITH MUCH MORE THAN STABILITY. WE DO NOT ACCEPT ECONOMIC
STAGNATION AS A TOLERABLE CONDITION FOR THE AMERICAS. DEVELOPMENT
... GROWTH ...PROGRESS —
BROADLY BASED AND WIDELY SHARED — THESE
1UST BE OUR PRIMARY OBJECTIVES. STABILIZATION AND GROWTH ARE NOT
U.TERNATIVES IN CONFLICT WITH EACH OTHER.
ON THE CONTRARY, THEY ARE MUTUALLY REINFORCING OBJECTIVES WHICH,
»HEN PURSUED SIMULTANEOUSLY, PROMOTE IMPROVEMENT,IN LIVING STANDARDS
"TJHE
MQ?T ?APID
AND
CONTINUOUS RATE POSSIBLE. SOCIAL FOHTTV TOR THE
AT .OGOTA, LAST FALL, WE JOINED IN LAUNCHING AN UNPRECEDENTED
SOCIAL DEVELOPMENT PROGRAM FOR LATIN AMERICA, A PROGRAM WHICH
SUBSTANTIALLY ENLARGED THE RESPONSIBILITIES OF THE BANK. THE
STATE IS NOW SET FOR US TO JOIN TOGETHER AGAIN IN A VAST, EXPANDED
EFFORT TO ACHIEVE OUR GOALS THROUGH PRACTICAL AND CONCRETE
MEASURES AFFECTING ALL ASPECTS OF ECONOMIC AND SOCIAL LIFE.
PRESIDENT JANIO QUADROS IN HIS MESSAGE LAST MONTH TO THE NATIONAL
CONGRESS STATED: "AS WAS RECOGNIZED BY THE ACT OF BOGOTA, IN
WHICH THE MAJOR PRACTICAL AND THEORETICAL POINTS OF OPERATION PAN
AMERICA WERE CONSECRATED, THE SOLUTION OF THE PROBLEMS WHICH
AFFLICT THE CONTINENT WILL DEPEND SUBSTANTIALLY ON ECONOMIC
PROGRESS. THAT ECONMIC PROGRESS WILL NOT BE STIMULATED UNTIL
THE GOVERNMENTS OF AMERICA DECIDE TO PASS FROM THE PLANE OF
THEORETICAL FORMULATIONS TO THE TERRAIN OF THE PRACTICAL EXECUTION
OF ADEQUATE MEASURES." TO "PASS FROM THE PLANE OF
THEORETICAL FORMULATIONS TO THE TERRAIN OF THE PRACTICAL
EXECUTION OF ADEAUATE MEASURES" — AND TO DO SO ON A COMPREHENSIVE
SCALE: THIS IS THE VERY PURPOSE OF THE ALIANZA PARA EL PROGRESO
PROPOSED BY PRESIDENT KENNEDY. IN PRESIDENT KENNEDY'S WORDS:
"IF WE ARE TO MEET A PROBLEM SO STAGGERING IN ITS DIMENSION,
OUR APPROACH MUST ITSELF BE EQUALLY BOLD — AN APPROACH CONSISTENT
WITH THE MAJESTIC CONCEPT OF OPERATION PAN AMERICA. THEREFORE
I HAVE CALLED ON ALL THE PEOPLE OF THE HEMISPHERE TO JOIN IN
A NEW ALLIANCE FOR PROGRESS — A VAST COOPERATIVE EFFORT,
UNAPARLLELED IN MAGNITUDE AND NOBILITY OF PURPOSE, TO SATISFY
THE BASIC NEEDS OF THE AMERICAN PEOPLE FOR HOMES, WORK AND
LAND, HEALTH AND SCHOOLS - TECHO, TRABAJO Y TIERRA, SALUD Y
ESCUELA". WHAT ARE THE ECONOMIC AND SOCIAL GOALS WE MUST PURSUE
IN CARRYING FORWARD AN ALLIANCE FOR PROGRESST I THINK THESE GOALS
CAN BE DEFINED AS GROWTH, STABILITY, AND SOCIAL EQUITY FOR
THE INDIVIDUAL. THESE THREE GOALS GO HAND IN HAND. THEY ARE NOT
ISOLATED OBJECTIVES. INDEED, IF THEY ARE TO SERVE THE PEOPLE - AND IN
)UR HEMISPHERE THE WELL-BEING OF TH, p E 0 P L E Is -« s u p R E M £
PW11/RJ123 RIO DE JANEIRO CK CMG RTP 10 2239GMT VIA PREWI
PRESS USINFO
WASHINGTON
RIO DE JANEIRO, APRIL 10 —
(HEREWITH FULL TEXT OF TREASURY
SECRETARY DOUGLAS DILLON'S SPEECH BEFORE SECOND ANNUAL MEETING
OF BOARD OF GOVERNORS OF INTER-AMERICAN DEVELOPMENT BANK.
TEXT MUST NOT II NOT BE RELEASED UNTIL TUESDAY, APRIL 11, AT NOON
EST. PLEASE^ PASS TO TREASURY DEPARTMENT FOR STEVE MANNING.
TEXT FOLLOWS) MR. CHAIRMAN, PRESIDENT HERRERA, FELLOW GOVERNORS:
IT IS A SPECIAL PLEASURE FOR ME TO MEET WITH YOU IN MY NEW
CAPACITY AS A GOVERNOR OF THE INTER-AMERICAN DEVELOPMENT BANK.
THE CONCEPT OF THE BANK AS A VITAL INSTRUMENT OF INTER-AMERICAN
COOPERATION HAS BEEN CLOSE TO MY HEART SINCE 1958, WHEN I HAD
THE HIGH PRIVILEGE OF INFORMING THE INTER-AMERICAN ECONOMIC AND
SOCIAL COUNCIL OF UNITED STATES SUPPORT FOR THIS NEW AND LONG
DREAMED-OF JOINT VENTURE.
WE ARE ALL GRATEFUL TO THE GOVERNMENT AND THE PEOPLE OF BRAZIL
FORINVITING US TO THIS GRACIOUS AND HOSPITABLE CITY OF RIO
DE JANEIRO. THE FAME OF *RIQ AS A WORLD METROPOLIS IS TOO WELL
ESTABLISHED FOR US TO ENRICH IT FURTHER BY OUR REMARKS. BUT
WE CAN AND DO EXTEND OUR WARM THANKS TO THE FRIENDLY PEOPLE OF
THIS LOVELY CITY FOR MAKING OUR STAY SO VERY PLEASANT.
I ALSO CANNOT FAIL TO CONGRATULATE OUR CHAIRMAN, THE DISTINGUISHED
MINISTER OF FINANCE OF BRAZIL, FOR THE INSPIRATION WHICH HE HAS
GIVEN TO OUR DELIBERATIONS BY THE WISDOM OF HIS WORDS. IT IS
FITTING THAT THE FIRST BIRTHDAY OF THE BANK IS BEING CELEBRATED
HERE IN BRAZIL, WHOSE GENIUS GAVE US THE NOBLE CONCEPT OF
OPERACAO PANAMERICANA. OPERATION PAN AMERICA, BORN OF ONRUSHING
SOCIAL CHANGE AND THE AWAKENING ASPIRATIONS OF THE PEOPLE,
SPEAKS TO THE HEARTS OF THE MEN AND WOMEN OF THE AMERICAS.
IT IS A SPIRITUAL CALL TO ACTION —
ACTION TO RAISE THE LIVING
STANDARDS OF THE MANY MILLIONS WHO NOW STRUGGLE IN POVERTY AND
TO GIVE THEIR LIVES REAL MEANING IN
TERMS OF PERSONAL FREEDOM AND INDIVIDUAL DIGNITY. MORE THAN A
CENTURY AGO, DEMOCRACY RAISED ITS VOICE THROUGHOUT LATIN AMERICA
IN A REVOLUTIONARY GRITO FOR LIBERTY. OPERATION PAN AMERICA IS
THE GRITO OF THE 20TH CENTURY —
AN INSISTENT AND INEXORABLE
DEMAND FOR LIBERATION FROM THE HUMAN MISERY CREATED BY CRUSHING
ECONOMIC AND SOCIAL CONDITIONS. THE GOVERNMENTS AND THE PEOPLES
OF THE HEMISPHERE ARE RESPONDING TO THE CALL. AT SAN SALVADOR,
A YEAR
AG0 _
WE JOINED IN INAUGURATING THE iNTERrAMERICAN BANK.
TREASURY DEPARTMENT
Washington
April 11, 1961
FOR RELEASE: AFTER 12:00 NOON
SK
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
SECOND MEETING OF THE BOARD OF GOVERNORS OF THE
INTER-AMERICAN DEVELOPMENT BANK
RIO de JANEIRO, BRAZIL, TUESDAY, APRIL 11, 1961
- 6The Inter-American Bank has been chosen by our Governments to
carry the principal responsibility for administering the Fund for
Social Development. We believe in the multilateral, cooperative
concept which inspired its organization. The distinguished
President of the Bank, Felipe Herrera, whose eloquent speech we have
just heard, was ideally chosen to direct the Bank!s efforts in
fulfilling this responsibility. He, together with the Executive
Directors and the professional staff, are men of broad experience,
intellectual stamina, objectivity, and personal integrity — men
well deserving of the trust reposed in them.
Our trust has been sustained by the Bank's performance. In the
short period of its existence the Bank has already approved 50
million dollars in loans to private and public enterprises in eight
Latin American countries: Six loans for $23,750,000 from its
ordinary capital resources, and four loans for $26,500,000 from its
funds for special operations. It has also provided technical
assistance to several countries countries through its wideranging missions. Its record of accomplishment is outstanding. It
has given high priority to providing urgently needed funds for the
economic development of small and middle-size private enterprises.
Two of its loans met a need which is basic in many Latin American
countries: increased supplies to potable water and expanded
sanitation. These loans provide graphic examples of how economic
and social progress can be combined in sound loans.
As testimony to the soundness of the Bank's operations fifteen
private financial institutions of my country have participated with
the Bank in its operations. This, too, is something of a record
for an international bank still in its infancy. The Bank has also
moved quickly into areas where economic frustration has retarded
the march of progress. It has faced up to hard problems. Loans to
break the grip of stagnation have been extended to Bolivia, Haiti,
Paraguay, and to the Northeast Region of our host country, Brazil.
There is a quality in the Bank's growth which has a special
significance — the pervading spirit of unanimity and brotherhood
in what the Bank does after thoroughgoing examination and
discussion of complex issues. The management and directors have
not once failed to arrive at a decision which all could consider
a wise and foward step.
This is a happy augury for the future success of our Alliance
For Progress. Earlier in my remarks, I said that we of the United
States do not accept economic stagnation as a tolerable condition
for the Americas. We regard both economic stagnation and social
injustice as totally intolerable. To us, therefore, economic and
social progress in the Hemisphere oOo
is not "merely a dream it is an
essential step in the attainment of the possible. We have the
essential instruments in our grasp. Let us here resolve to use them
wisely and well.
- 5earnings of all the people. It means the encouragement of private
enterprise through tax and other policies. It means the building
of roads and dams. It means the extension of marketing, distribution
and banking systems. It means the opening up of agricultural lands
and the reformation of outdated systems of land tenure.
Let us not deceive outselves. The adoption and execution of
well-planned programs based upon self-help will call for discipline
and sacrifice. These burdens will bear most heavily upon the more
favored classes of society. Great as these sacrifices may be, I am
confident that they will be made. For the challenge which the
Americas face, is clear and unmistakable. We can not, we dare not,
let it go unanswered.
The vast effort required in planning, in self-help, and in the
channelling of external resources into development, makes it mandatory
that we make full use of our Inter-American machinery. The Bank,
Inter-American Economic and Social Council, and Economic Commission
for Latin America; each must play its part. An excellent beginning
has already been made with the creation of the new Committee on
Cooperation by our President, Senor Felipe Herrera, and his
colleagues, Dr. Raul Prebish of ECLA, and Dr. Jose Mora of the
OAS. The opportunity to organize in concrete terms, the new
substantive programs envisaged in the Alliance For Progress, will
be provided by the forthcoming Special Ministerial Meeting of
IA-ECOSOC. The United States will have specific suggestions to
present at that Meeting, and we will warmly welcome the suggestions
of others.
Meanwhile, I should like to outline some of our thinking:
It may, for example, be desirable to make use of a limited number
of special working groups in areas where individual country experience
can be beneficially exchanged, or where multilateral consultations
may be needed, as in the formulation of methods for employing surplus
food in social development projects.
We attach great importance to the annual review of economic and
social problems and progress as envisaged by the Act of Bogota.
These reviews should provide both a continuing sense of direction
and a stimulus for even greater efforts. The all important thing is
that there be continuous and productive work from which the member
nations can really benefit. Surveys and reports serve no useful
purpose unless they produce concrete results. We are also convinced
that the staff of IA-ECOSOC must be built into an outstandingly
competent and creative secretariat — a goal which we are happy to
note is well on its way to fulfillment under the able leadership of
Sr. Jorge Sol. The Inter-American Bank is destined to play a vital
role in both the economic and social development sectors of this great
new effort, not only as a lender of funds, but also as a provider of
technical assistance, as a policy coordinator with other international
States
agencies,
in the
and operation
as a source
ofof
its
information
foreign aid
and
programs.
assistance to the United
- 4 -
>^ w
available, on a long range basis, both for specific projects and for
general economic support of well-conceived development programs.
Terms of repayment are to be adjusted to national ability to repay,
and will include the use of long-term, interest-free loans.
We also hope that the Alliance For Progress will lead to an
increase in development assistance to Latin America from the other
industrialized countries of the Free World. Two weeks ago, in
London, the members of the Development Assistance Group agreed upon
a significant declaration of policy. They called for an expansion
of the aggregate volume of the resources presently flowing to the
developing countries, for aid on an assured and continuing basis,
and for greater assistance in the form of grants and loans on
favorable terms. A larger supply of external public capital and
its more systematic application for development programs should
bring about a greater flow of foreign private investment, particularly
investment in the production and distribution of goods and services
for expanding domestic markets. When the new Organization for
Economic Cooperation and Development is established sometime later
this year, the Development Assistance Group will become a subsidiary
body of the OECD.
Through the Organization of American States, Latin America
should have a close working relationship with the OECD. The
United States will strive to bring this about. We do not foresee
any difficulty, for I understand that Mr. Thorkil Kristensen, the
distinguished European statesman, who will be the Secretary General
of the OECD, shares this view.
I have spoken of the need for self-help and effective national
planning in carrying forward the Alliance For Progress. The phrase
"self-help" should not be interpreted to mean conditions imposed
upon a country as the price of external assistance. Quite the
contrary, self-help is the key to the entire development process.
Without it, outside assistance would be totally ineffective. The
great bulk of resources for development, human and material, must
come from within the developing countries. External assitance can
be a critically important supplement to their own efforts. But it
can be effective only when the developing countries make full use of
their own resources on their own behalf.
It is for this reason that long-range planning and programming
for economic and social development are so important to the concept
of the Alliance For Progress.
As we see it, development planning does not imply regimentation
of economies through governmental controls. It does mean consistent
programming of public investment aimed at broad development targets —
programming supplemented by economic and social policies designed
to activate a nation's energies and resources, including the
indispensable private sector. It means good monetary management.
It means the mobilization of each country's resources in a manner
best calculated to bring into the common endeavor the savings and
I have heard it said that some Latin Americans believe the
United States is concerned only with financial stabilization programs
in Latin America. If there are any doubts on this score, let me
dispel them here and now: The United States is concerned, and
deeply concerned with much more than stability. We do not accept
economic stagnation as a tolerable condition for the Americas.
Development ... growth ... progress ... broadly based and widely
shared — these must be our primary objectives. Stabilization and
growth are not alternatives in conflict with each other.
On the contrary, they are mutually reinforcing objectives which,
when pursued simultaneously, promote improvement in living standards
at the most rapid and continuous rate possible. Social equity for
the individual, our third goal, is in many ways the most important.
Development will not produce true economic progress if its benefits
are restricted to the privileged few and denied to the many who
today are sadly underprivileged. Social equity for the individual
must be a prime target of our endeavor. Our spiritual traditions
demand no less. Moreover, people are the single most powerful
factor in economic development. Without social equity for the
individual, democracy will languish and free government will disappear
The move rapidly towards these inter-related goals, the Alliance for
progress proposed by President Kennedy, calls for a concerted maximum
effort over the next decade. This would involve the formulation by
each Latin American country of its own long-term plans for development
as well as the establishment of specific targets and priorities.,
These plans would not only inspire surging national efforts, they
would also provide solid foundations for the effective use of external
The new Social Development Program embodied in the Act of Bogota
assistance -- from the Inter-American Bank, from the United States
will be an important part of the Alliance for Progress. We are
and other industrialized countries, and from the international
confident that this program can be started quickly, with the
institutions of the Free World.
Inter-American Bank taking a leading role. As you know, President
Kennedy has proposed to our Congress that, of the 500 million dollars
to be provided as a first step in implementing social development
under the Act of Bogota, 39^ million dollars be administered by the
Bank and six million dollars by the Organization of American States.
In the normal course of our legislative process these funds should
become available within the next two months. Social development, we
are all agreed, must be accompanied by economic development.
Planning and resources, both national and international, must be
devoted to the expansion of industry, agriculture and mining,
transport and power, and commercial enterprise. The United States
is, therefore, prepared to devote substantial resources over and
above the present flow of public and private capital, to basic
economic development as a part of the Alliance for Progress.
President Kennedy has submitted to the Congress a new over-all
program of Foreign Economic Assistance to assure the availability of
United States public capital for these purposes in Latin America,
as well as in other developing countries. This assistance will be
*—' **,. 'v'
- 2 President Janio Quadros in his message last month to the
National Congress stated: "As was recognized by the Act of Bogota, in
which the major practical and theoretical points of Operation Pan
America' were consecrated, the solution of the problems which afflict
the Continent will depend substantially on economic progress. That
economic progress will not be stimulated until the Governments of
America decide to pass from the plane of theoretical formulations
to the terrain of the practical execution of adequate measures."
To "pass from the plane of theoretical formulations to the terrain
of the practical execution of adequate measures" — and to do so on
a comprehensive scale: this is the very purpose of the Alianza Para
El Progreso proposed by President Kennedy. In President Kennedy's
words: "If we are to meet a problem so staggering in its dimension,
our approach must itself be equally bold -- an approach consistent
with the majestic concept of Operation Pan America. Therefore, I
have called on all the people of the Hemisphere to join in a new
alliance for progress — a vast cooperative effort, unparalleled in
magnitude and nobility of purpose, to satisfy the basic needs of the
American people for homes, work and land, health and schools —
techo, trabajo y tierra, salud y escuela".
What are the economic and social goals we must pursue in carrying
forward an alliance for progress?
I think these goals can be defined as growth, stability, and
social equity for the individual. These three goals go hand in
hand. They are not isolated objectives. Indeed, if they are to
serve the people — and in our Hemisphere the well-being of the
people is the supreme purpose of government — they must form an
indissoluble trinity.
Economic stability is not an end in itself. It is a means to
promote steady and widely-shared economic growth. To induce an
adequate rate of savings, to channel investment into truly productive
undertakings, to strengthen popular confidence in democratic
processes, to attract foreign enterprise, in short to promote a
balanced development of the economy, there must be reasonable price
stability. This in turn requires effective budget management and
tax administration. Credit policies should be designed to foster
growth. They should also be designed to avoid speculative excess.
Foreign exchange policies should realistically relate internal
prices and cost to world markets. These views, I believe, are now
well settled in the thinking of those responsible for economic and
financial policy in the developing countries. The heavy long-run
costs of severe inflation have been widely recognized. The illusion
that such inflation can provide a quick and easy way to better
living standards has been dispelled. Of course economic stability
by itself will not guarantee economic growth. This is especially
true in the developing countries, where bold and positive efforts
must be made in both the governmental and private sectors to help
create the conditions for growth.
TREASURY DEPARTMENT
Washington
~l'I
April 11, 1961
FOR RELEASE: AFTER 12:00 NOON
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
SECOND MEETING OF THE BOARD OF GOVERNORS OF THE
INTER-AMERICAN DEVELOPMENT BANK
RIO DE JANEIRO, BRAZIL, TUESDAY, APRIL 11, 196l
Mr. Chairman, President Herrera, Fellow Governors:
It is a special pleasure for me to meet with you in my new
capacity as a Governor of the Inter-American Development Bank. The
concept of the Bank as a vital instrument of Inter-American
Cooperation has been close to my heart since 1958, when I had the
high privilege of informing the Inter-American Economic and Social
Council of United States support for this new and long dreamed-of
joint venture.
We are all grateful to the Government and the people of Brazil
for inviting us to this gracious and hospitable city of Rio de Janeiro
The fame of Rio as a world metropolis is too well established for us
to enrich it further by our remarks. But we can and do extend our
warm thanks to the friendly people of this lovely city for making our
stay so very pleasant.
I also cannot fail to congratulate our Chairman, the distinguishe
Minister of Finance of Brazil, for the inspiration which he has given
to our deliberations by the wisdom of his words. It is fitting that
the first birthday of the Bank is being celebrated here in Brazil,
whose genius gave us the noble concept of Operacao Panamericana.
Operation Pan America, born of onrushing social change and the
awakening aspirations of the people, speaks to the hearts of the men
and women of the Americas. It is a spiritual call to action —
action to raise the living standards of the many millions who now
struggle in poverty and to give their lives real meaning in terms of
personal freedom and individual dignity. More than a century ago,
democracy raised its voice throughout Latin America in a revolutionary
"gritonfor liberty. Operation Pan America is the fferito" of the 20th
century — an insistent and inexorable demand for liberation from the
human misery created by crushing economic and social conditions.
The governments and the peoples of the Hemisphere are responding to
the call. At San Salvador, a year ago, we joined in inaugurating
the Inter-American Bank. At Bogota, last fall, we joined in
launching an unprecedented social development program for Latin
America, a program which substantially enlarged the responsibilities
D-73
of
the Bank. The stage is now set for us to join together again in
a vast, expanded effort to achieve our goals through practical and
concrete measures affecting all aspects of economic and social life.
TREASURY DEPARTMENT
Washington
on >
^ w __
April 11, 1961
FOR RELEASE: AFTER 12:00 NOON
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
SECOND MEETING OF THE BOARD OF GOVERNORS OF THE
INTER-AMERICAN DEVELOPMENT BANK
RIO DE JANEIRO, BRAZIL, TUESDAY, APRIL 11, 1961
Mr. Chairman, President Herrera, Fellow Governors:
It is a special pleasure for me to meet with you in my new
capacity as a Governor of the Inter-American Development Bank. The
concept of the Bank as a vital instrument of Inter-American
Cooperation has been close to my heart since 1958, when I had the
high privilege of informing the Inter-American Economic and Social
Council of United States support for this new and long dreamed-of
joint venture.
We are all grateful to the Government and the people of Brazil
for inviting us to this gracious and hospitable city of Rio de Janeiro
Hie fame of Rio as a world metropolis is too well established for us
to enrich it further by our remarks. But we can and do extend our
tfarm thanks to the friendly people of this lovely city for making our
stay so very pleasant.
I also cannot fail to congratulate our Chairman, the distinguishe
Minister of Finance of Brazil, for the inspiration which he has given
to our deliberations by the wisdom of his words. It is fitting that
bhe first birthday of the Bank is being celebrated here in Brazil,
tfhose genius gave us the noble concept of Operacao Panamericana.
Operation Pan America, born of onrushing social change and the
awakening aspirations of the people, speaks to the hearts of the men
and women of the Americas. It is a spiritual call to action —
action to raise the living standards of the many millions who now
struggle in poverty and to give their lives real meaning in terms of
)ersonal freedom and individual dignity. More than a century ago,
lemocracy raised its voice throughout Latin America in a revolutionary
;rito"for liberty. Operation Pan America is the fferito" of the 20th
tentury — an insistent and inexorable demand for liberation from the
iuman misery created by crushing economic and social conditions.
?he governments and the peoples of the Hemisphere are responding to
'he call. At San Salvador, a year ago, we joined in inaugurating
;he Inter-American Bank. At Bogota, last fall, we joined in
.aunching an unprecedented social development programfor Latin
imerica, a program which substantially enlarged the responsibilities
D-73
>f the Bank. The stage is now set for us to join together again in
L vast, expanded effort to achieve our goals through practical and
oncrete measures affecting all aspects of economic and social life.
30 Q
Cs \J _»
- 2 President Janio Quadros in his message last month to the
National Congress stated: "As was recognized by the Act of Bogota, in
which the major practical and theoretical points of Operation Pan
America were consecrated, the solution of the problems which afflict
the Continent will depend substantially on economic progress. That
economic progress will not be stimulated until the Governments of
America decide to pass from the plane of theoretical formulations
to the terrain of the practical execution of adequate measures."
To "pass from the plane of theoretical formulations to the terrain
of the practical execution of adequate measures" — and to do so on
a comprehensive scale: this is the very purpose of the Alianza Para
El Progreso proposed by President Kennedy. In President Kennedy's
words: "If we are to meet a problem so staggering in its dimension,
<;our approach must itself be equally bold — an approach consistent
with the majestic concept of Operation Pan America. Therefore, I
have called on all the people of the Hemisphere to join in a new
alliance for progress — a vast cooperative effort, unparalleled in
magnitude and nobility of purpose, to satisfy the basic needs of the
American people for homes, work and land, health and schools —
techo, trabajo y tierra, salud y escuela".
What are the economic and social goals we must pursue in carrying
forward an alliance for progress?
I think these goals can be defined as growth, stability, and
social equity for the individual. These three goals go hand in
hand. They are not isolated objectives. Indeed, if they are to
serve the people — and in our Hemisphere the well-being of the
people is the supreme purpose of government — they must form an
indissoluble trinity.
Economic stability is not an end in itself. It is a means to
promote steady and widely-shared economic growth. To induce an
adequate rate of savings, to channel investment into truly productive
undertakings, to strengthen popular confidence in democratic
processes, to attract foreign enterprise, in short to promote a
balanced development of the economy, there must be reasonable price
stability. This in turn requires effective budget management and
tax administration. Credit policies should be designed to foster
growth. They should also be designed to avoid speculative excess.
Foreign exchange policies should realistically relate internal
prices and cost to world markets. These views, I believe, are now
well settled in the thinking of those responsible for economic and
financial policy in the developing countries.. The heavy long-run
costs of severe inflation have been widely recognized. The illusion
that such inflation can provide a quick and easy way to better
living standards has been dispelled. Of course economic stability
by itself will not guarantee economic growth. This is especially
true in the developing countries, where bold and positive efforts
must be made in both the governmental and private sectors to help
create the conditions for growth.
-3-
304
I have heard it said that some Latin Americans believe the
United States is concerned only with financial stabilization programs
in Latin America. If there are any doubts on this score, let me
dispel them here and now: The United States is concerned, and
deeply concerned with much more than stability. We do not accept
economic stagnation as a tolerable condition for the Americas.
Development ... growth ... progress^ ... broadly based and widely
shared — these must be our primary objectives. Stabilization and
growth are not alternatives in conflict with each other.
On the contrary, they are mutually reinforcing objectives which,
when pursued simultaneously, promote improvement in living standards
at the most rapid and continuous rate possible. Social equity for
the individual, our third goal, is in many ways the most important.
Development will not produce true economic progress if its benefits
are restricted to the privileged few and denied to the many who
today are sadly underprivileged. Social equity for the individual
must be a prime target of our endeavor. Our spiritual traditions
demand no less. Moreover, people are the single most powerful
factor in economic development. Without social equity for the
individual, democracy will languish and free government will disappear.
The move rapidly towards these inter-related goals, the Alliance for
progress proposed by President Kennedy, calls for a concerted maximum
effort over the next decade. This would involve the formulation by
each Latin American country of its own long-term plans for development,
as well as the establishment of specific targets and priorities.
These plans would not only inspire surging national efforts, they
would also provide solid foundations for the effective use of external
assistance -- from the Inter-American Bank,, from the United States
and other industrialized countries, and from the international
institutions of the Free World.
The new Social Development Program embodied in the Act of Bogota
will be an important part of the Alliance for Progress. We are
confident that this program can be started quickly, with the
Inter-American Bank taking a leading role. As you know, President
Kennedy has proposed to our Congress that, of the 500 million dollars
to be provided as a first step in implementing social development
under the Act of Bogota, 394 million dollars be administered by the
Bank and six million dollars by the Organization of American States.
In the normal course of our legislative process these funds should
become available within the next two months. Social development, we
are all agreed, must be accompanied by economic development.
Planning and resources, both national and international, must be
devoted to the expansion of industry, agriculture and mining,
transport and power, and commercial enterprise. The United States
is, therefore, prepared to devote substantial resources over and
above the present flow of public and private capital, to basic
economic development as a part of the Alliance for Progress.
President Kennedy has submitted to the Congress a new over-all
United
program
as wellStates
of
as Foreign
in public
otherEconomic
developing
capitalAssistance
for
countries.
these purposes
to assure
This assistance
in
the
Latin
availability
America,
will beof
W W -
- 4-
available, on a long range basis, both for specific projects and for
general economic support of we11-conceived development programs.
Terms of repayment are to be adjusted to national ability to repay,
and will include the use of long-term, interest-free loans.
We also hope that the Alliance For Progress will lead to an
increase in development assistance to Latin America from the other
industrialized countries of the Free World. Two weeks ago, in
London, the members of the Development Assistance Group agreed upon
a significant declaration of policy. They called for an expansion
of the aggregate volume of the resources presently flowing to the
developing countries, for aid on an assured and continuing basis,
and for greater assistance in the form of grants and loans ori
favorable terms. A larger supply of external public capital and
its more systematic application for development programs should
bring about a greater flow of foreign private investment, particularly
investment in the production and distribution of goods and services
for expanding domestic markets. When the new Organization for
Economic Cooperation and Development is established sometime later
this year, the Development Assistance Group will become a subsidiary
body of the OECD.
Through the Organization of American States, Latin America
should have a close working relationship with the OECD. The
United States will strive to bring this about. We do not foresee
any difficulty, for I understand that Mr. Thorkil Kristensen, the
distinguished European statesman, who will be the Secretary General
of the OECD, shares this view.
I haive spoken of the need for self-help and effective national
planning in carrying forward the Alliance For Progress. The phrase
"self-help" should not be interpreted to mean conditions imposed
upon a country as the price of external assistance. Quite the
contrary, self-help is the key to the entire development process.
Without it, outside assistance would be totally ineffective. The
great bulk of resources for development, human and material, must
come from within the developing countries. External assitance can
be a critically important supplement to their own efforts. But it
can be effective only when the developing countries make full use of
their own resources on their own behalf.
It is for this reason that long-range planning and programming
for economic and social development are so important to the concept
of the Alliance For Progress.
As we see it, development planning does not imply regimentation
of economies through governmental controls. It does mean consistent
programming of public investment aimed at broad development targets —
programming supplemented by economic and social policies designed
to activate a nation's energies and resources, including the
indispensable private sector. It means good monetary management.
It means the mobilization of each country's resources in a manner
best calculated to bring into the common endeavor the savings and
^ U w
- 5 earnings of all the people. It means the encouragement of private
enterprise through tax and other policies. It means the building
of roads and dams. It means the extension of marketing, distribution
and banking systems. It means the opening up of agricultural lands
and the reformation of outdated systems of land tenure.
Let us not deceive outselves. The adoption and execution of
well-planned programs based upon self-help will call for discipline
and sacrifice. These burdens will bear most heavily upon the more
favored classes of society. Great as these sacrifices may be, I am
confident that they will be made. For the challenge which the
Americas face, is clear and unmistakable. We can not, we dare not,
let it go unanswered.
The vast effort required in planning, in self-help, and in the
channelling of external resources into development, makes it mandatory
that we make full use of our Inter-American machinery. The Bank,
Inter-American Economic and Social Council, and Economic Commission
for Latin America; each must play its part. An excellent beginning
has already been made with the creation of the new Committee on
Cooperation by our President, Senor Felipe Herrera, and his
colleagues, Dr. Raul Prebish of ECLA, and Dr. Jose Mora of the
0AS. The opportunity to organize in concrete terms, the new
substantive programs envisaged in the Alliance For Progress, will
be provided by the forthcoming Special Ministerial Meeting of
IA-ECOSOC. The United States will have specific suggestions to
present at that Meeting, and we will warmly welcome the suggestions
of others.
Meanwhile, I should like to outline some of our thinking:
It may, for example, be desirable to make use of a limited number
of special working groups in areas where individual country experience
can be beneficially exchanged, or where multilateral consultations
may be needed, as in the formulation of methods for employing surplus
food in social development projects.
We attach great importance to the annual review of economic and
social problems and progress as envisaged by the Act of Bogota.
These reviews should provide both a continuing sense of direction
and a stimulus for even greater efforts. The all important thing is
that there be continuous and productive work from which the member
nations can really benefit. Surveys and reports serve no useful
purpose unless they produce concrete results. We are also convinced
that the staff of IA-ECOSOC must be built into an outstandingly
competent and creative secretariat — a goal which we are happy to
note is well on its way to fulfillment under the able leadership of
Sr. Jorge Sol. The Inter-American Bank is destined to, play a vital
role in both the economic and social development sectors of this great
new effort, not only as a lender of funds, but also as a provider of
technical assistance, as a policy coordinator with other international
agencies,
and operation
as a source
information
and
assistance to the United
States
in the
ofof
its
foreign aid
programs.
30T
- 6The Inter-American Bank has been chosen by our Governments to
carry the principal responsibility for administering the Fund for
Social Development. We believe in the multilateral, cooperative
concept which inspired its organization. The distinguished
President of the Bank, Felipe Herrera, whose eloquent speech we have
just heard, was ideally chosen to direct the Bank's efforts in
fulfilling this responsibility. He, together with the Executive
Directors and the professional staff, are men of broad experience,
intellectual stamina, objectivity, and personal integrity — men
well deserving of the trust reposed in them.
Our trust has been sustained by the Bank's performance. In the
short period of its existence the Bank has already approved 50
million dollars in loans to private and public enterprises in eight
Latin American countries: Six loans for $23,750,000 from its
ordinary capital resources, and four loans for $26,500,000 from its
funds for special operations. It has also provided technical
assistance to several countries countries through its wideranging missions. Its record of accomplishment is outstanding. It
has given high priority to providing urgently needed funds for the
economic development of small and middle-size private enterprises.
Two of its loans met a need which is basic in many Latin American
countries: increased supplies to potable water and expanded
sanitation. These loans provide graphic examples of how economic
and social progress can be combined in sound loans.
As testimony to the soundness of the Bank's operations fifteen
private financial institutions of my country have participated with
the Bank in its operations. This, too, is something of a record
for an international bank still in its infancy. The Bank has also
moved quickly into areas where economic frustration has retarded
the march of progress. It has faced up to hard problems. Loans to
break the grip of stagnation have been extended to Bolivia, Haiti,
Paraguay, and to the Northeast Region of our host country, Brazil.
There is a quality in the Bank's growth which has a special
significance — the pervading spirit of unanimity and brotherhood
in what the Bank does after thoroughgoing examination and
discussion of complex issues. The management and directors have
not once failed to arrive at a decision which all could consider
a wise and foward step.
This is a happy augury for the future success of our Alliance
For Progress. Earlier in my remarks, I said that we of the United
States do not accept economic stagnation as a tolerable condition
for the Americas. We regard both economic stagnation and social
injustice as totally intolerable. To us, therefore, economic and
social progress in the Hemisphere is not merely a dream it is an
essential step in the attainment oOo
of the possible. We have the
essential instruments in our grasp. Let us here resolve to use them
wisely and well.
STATUTORY DEBT LIMITATION
AS O F March 31, 1961
Washington. ApriU2, I96I
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obligations issued tinder 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
tAct of June 30, 1959; U.5.C., "tie 31, sec, 757b), outstanding at any one time. For purposes of this section the current redemption value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the boldef
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 be outstanding at any one time
$293,000,000,000
Outstanding Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $36,511,23? ,000
Certificates of indebtedness
Treasury notes
BondsTreasury
* Savings (current redemp. value)..
Depositary.
R.EoAo series
Investment series
Special FundsCertificates of indebtedness
Treasury notes
Treasury bonds
Total interest-bearing
Matured, interest-ceased
'}
11,503,147,000
57 ,833 ,160 . 0 0 0
80 , 622 , 954,250
4 7 , 3 9 5 , 1 4 4 ,010
121,211,000
*•
15,506,000
6,005,131,000
Bearing no interest:
United States Savings Stamps
„....
Excess profits tax refund bonds
Special notes of the United States:
_ .
l|M
Internal'! Monetary Fund series
asoar Int'l Bevel.Ass'n.
$105,847,544,000
7*686,008,000
8,777,172,000
27,537 ,385,000
1341159 ,946,260
ffi,
000,565,000
2W,00b,055»260
417,698,350
52,975*205
(jr*e%*~>J^r
_,
2,536,000,000
_o £_o onrt
n CA\n QQo O Q Q
57,652,200
^mai'-vvrvvi^v^rivTv:';:;';;;::::*:;";^::":;;
2,647,382,23?
287,073,135,849
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Deben.ures: F . H . A A J £ S t a d , B d S •
209,9^2,250
Matured, interest-ceased..
902,175
Grand total outstanding
Balance face amount of obligations issuable under above authority;.
•1 uc r u
n
210,844,425
2 8 7 , 2 8 3 f ?80,27^
5 , 7 1 6 , 019 9 (2.0
.
ui* n _ March 311 I96I
Reconcilement with Statement of the Public Debt.
:.(Date)
...* „
(Daily Statement of the United States Treasury, .. . ~?- *h ?tA..~?.....
-_
_•
(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
rC
)
. ^
287 ,47l^0l,^33
CJSJ%&***% J.
^ O ( ,OO/C,drrj,Oj
J V O t ^ O v t / «-
287,283,980,27^
D-7^
STATUTORY DEBT LIMITATION
Asnp March 31, 1961
AS OF
309
, . ,,0 ,_,.,
>
w..WD B «~. April"!, 1961
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 (except sucaguar-
ut6»»
o
—
i
$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 be outstanding at any one time
$293,000,000,000
OutstandingObligations issued under Second Liberty Bond Act, as amended
Interest-bearing:
Treasury bills $36 , 511, 237 , 000
Certificates of indebtedness
11,503,147,000
Treasury notes
BondsTreasury
* Savings (current redemp. value)
Depositary.
R.EoAc series
Investment series
Special FundsCertificates of indebtedness
57,833,160,000
$105,847,544,000
80,622,954,250
47,395,144,010
121,231,000
15,506,000
6,005,131,000
1 3 4 , 159 ,Q46, 260
Treasury notes
Treasury bonds
Total interest-bearing
8 , 7 7 7 ,172 , 0 0 0
27,537,385,000
7,686,008,000
44,000,565,000
2W , 008 , 055 , 260
Matured, interest-ceased
Bearing no interest:
United States Savings Stamps
Excess profits tax refund bonds
Special notes of the United States:
Internat'l
Monetary rFund
iiucniui i Monetary
unu series
scncs
417,698,350
5 2, „ f5»20^
(J^t^J^
2,536,000,000
c o
^
r o
oArv
0
/l,n
OQ0
OQO
xxxx Int'l Devel.Ass'n.
57,652,200
?-,6^7,,?82,232
TSiai"T.":':": :T:T:T. ':v::v::r. :r. r:vr:r:rr:7. ?87,073,135, 8^9
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F.H.A A ^ . . S ^ S d S .
209,942,250
Matured, interest-ceased
902,3 7 5
Grand total outstanding
Balance face amount of obligations issuable under above authority
• . - r , r. , •• -. 1 "inarch 311 1^61
Reconcilement with Statement of the Public Debt
(Daily Statement of the United States Treasury,
n
..
210,844,425
2 8 7 ,283 , 9 8 0 , 2 7 4
5,716,019,726
:
(Dnte)
!;;^?.^...?.^^.,.„?.&...
)
(Data)
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
287 ,471 r ^ 0 1 , 4 3 3
tCl\J t O'I<l t^^J
/CO / ,00.<. , jC^rj , O ^ O
_~Wo , ~ C _ , jeW
287,283,980,27^
D-74
a&EgCg_ffl3_KI%X_E^
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 intere
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amoun
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 e
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, wheth
on original issue or on subsequent purchase, and the amount actually received eith
upon sale or redemption at maturity during the taxable year for which the return i
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.
31
?
W _» __
TREASURY DEPARTMENT
Washington
>R IMMEDIATE RELEASE/ April 12 1961
TREASURY'S WEEKLY BILL OFFERING
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 April 20, 1961 j in the amount
of $1,501,608,000 , as follows:
91 -day bills (to maturity date) to be issued April 20. 1961 >
in the amount of $1,100,000,000 , or thereabouts, representing an additional amount of bills dated January 19, 1961 ,
and to mature July 20, 1961 , originally issued in the
amount of $400,112,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 400,000,000 , or thereabouts, to be dated
(33Q
ISsEF
April 20, 1961
, and to mature
October 19, 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 amou
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 closinf
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 17, 1961
pi?
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more than three
-7n
TREASURY DEPARTMENT
\* J-
'_••-•. >.\m ;•.,'»"•'.• ••'..•I •"l, .'.I!!.1 •••"•". .•• «••••• . .l>. ,' '••" l-.ymii'."•••• '".'nnn,ni»|i.l..ii— iwiwiiiiiMJlJJiltNIWI_l_flHHJi;illMLffl_
WASHINGTON, D.C.
April 12, 1961
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
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 April 20, 1961, in the amount of
$1,501,608,000, as follows:
91-day bills (to maturity date) to be issued April 20, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated January 19, 1961, and to
mature July 20, 1961,
originally issued in the amount of
$400,172,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $400,000,000, or thereabouts, to be dated
April 20, 196l,
and to mature October 19, 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). A
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock p.m., Eastern
Standard time, Monday, April 17, 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
orD-75
trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
January 19, 19^1, (91 days remaining until maturity date on
July 20, 196l)
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 April 20, 1961,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing April 20, 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^. 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
BM |J 1 lllll-AMPvvtf<IUWIMWIIIIIMm»JI__ T|f ^ Wff |^
WASHINGTON, D.C.
OR RELEASE A . M . NEWSPAPERS,
hursday, April 13, 196l.
April 12, 1961
RESULTS OF REFUNDING OF $2 BILLION OF ONE-YEAR BILLS
The Treasury Department announced last evening that the tenders for $2,000,000,000,
r thereabouts, of 365-day Treasury bills to be dated April 15, 1961, and to mature
pril 15, 1962, which were offered on April 6, were opened at the Federal Reserve Banks
n April 12.
The details of this issue are as follows:
Total applied for - $1*,116,1*51,000
Total accepted
- 2,000,367,000
(includes $178,891*, 000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids: (Excepting one tender of $1,500,000)
High
Low
Average
(81 percent
- 97.171 Equivalent rate of discount approx. 2.790$ per annum
l!
M
tl
f!
- 97.117
"
2.81*1$ * !f
fl
,!
l!
n
- 97-134
"
"
2.827$ "
1/
of the amount bid for at the low price was accepted)
Total
Total
Federal Reserve
Accepted
Applied For
District
I
31,818,000
$
86,818,000
Boston
l,34l,3li5,O00
2,682,215,000
New York
20,191,000
57,591,000
Philadelphia
72,1*91,000
225,551,000
Cleveland
17,801*, 000
37,9011,000
Richmond
35,1*95,000
74,745,000
Atlanta
230,793,000
522,032,000
Chicago
13,217,000
24,797,000
St. Louis
7,370,000
27,570,000
Minneapolis
27,169,000
52,281i,000
Kansas City
22,921,000
39,021,000
Dallas
176,723,000
285*923,000
San Francisco
On a coupon issue of the sameTOTAL
length and
for the same amount invested,
the return on
$2,000,367,000
$l*,ll6,1*51,000
these bills would provide a yield of 2.93$. 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.
D-76
316
-2-
Commodity
Period and Quantity
Unit
Imports
of
as of
Quantity April 1. 1961
Absolute Quotas
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter).....
12 mos. from
Aug. 1, 1960
lye, rye flour, and rye meal July 1, 1960June 30, 1961
Canada
Other Countries
Sutter substitutes, including
butter oil, containing 45% or
more butterfat
Calendar Year 1961
1,709,000
Pound
36,753*
140,733,957
2,872,122
Pound
Pound
122,967,888*
1,200,000
Pound
Quota Filled
18,770,577
2,230,313
711,188
Pound
Pound
Pound
4,909,007*
Quota Filled
rung Oil Feb. 1, 1961Oct. 31, 1961
Argentina
Paraguay
Other Countries
<f Imports through April 10, 1961.
31?
TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE
THURSDAY, APRIL 13, 196l
D-77
The Bureau of Customs announced today preliminary figures showing the imports for
consumption of the commodities listed below within quota limitations from the beginning
of the quota periods to April 1, 1961, inclusive, as follows:
Commodity
Period and Quantity
Imports
Unit
as of
of
Quantity: April 1. 1961
Tariff-Rate Quotas:
Cream, fresh or sour............ Calendar Year 1,500,000 Gallon
241
Whole milk, fresh or sour....... Calendar Year 3,000,000 Gallon
30
Cattle, 700 lbs. or more each
(other than dairy cows)........
Jan. 1, 1961March 31, 1961
120,000
Head
17,71Qi/
Cattle less than 200 lbs. each.. 12 mos. from
April 1, 1960
200,000
Head
39,5431/
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish........ Calendar Year
32,600,645
Pound
Quota Filled*/
Tuna fish
Calendar Year
57,114,714
Pound
11,822,619
White or Irish potatoes:
Certified seed.......
Other
12 mos. from
114,000,000
Sept. 15, 1960 36,000,000
Pound
Pound
47,542,220
5,866,643
12 mos. from
July 1, 1960
80,000,000
Pound
1,440
Walnuts.
Calendar Year
5,000,000
Pound
Stainless steel table flatware
(table knives, table forks,
table spoons)......••.......
Nov. 1, 1960Oct. 31, 1961
69,000,000
Pieces
Peanut oil
3,819,556
Quota Filled!/
1/ As of March 31, 1961.
2/ As of March 31, 1961. Imports for consumption at the quota rate are limited to
8,150,161 pounds during the first three months of the calendar year.
31 Based on preliminary data; subject to adjustment.
(over)
TREASURY DEPARTMENT
Washington, D . C .
318
.;_DIAIE RELEASE
URSDAY, APRIL 13, 1961
D-77
1 The Bureau of C u s t o m s announced today preliminary figures showing t h e imports f o r
resumption of t h e commodities listed b e l o w within quota limitations from the beginning
the quota periods to April 1, 1 9 6 1 , inclusive, as follows:
Commodity
Period and Quantity
Imports
Unit
as of
of
Quantity: April 1. 1961
riff-Rate Quotas:
earn, fresh or sour Calendar Year 1,500,000 Gallon
241
ole milk, fresh or sour Calendar Year 3,000,000 Gallon
ttle, 700 lbs. o r m o r e each
other than dairy c o w s )
J a n . 1, 1961March 3 1 , 1961
ttle less than 200 lbs. each.. 12 mos. from
April 1, 1960
30
120,000
Head
17,7101/
200,000
Head
39»543i/
sh, fresh or frozen, filleted,
c#, cod, haddock, h a k e , p o l ck, cusk, and rosefish
Calendar Year
32,600,645
Pound
Quota Filled*/
aa fish,
Calendar Year
57,114,714
Pound
11,822,619
Lte or Irish potatoes:
stifled seed
:her
12 m o s . from
114,000,000
Sept. 1 5 , I960 36,000,000
Pound
Pound
47,542,220
5,866,643
12 mos. from
July 1, 1960
Pound
1,440
iUUL 0 1 1 . . . . . . . . . . • « . . . « « . . .
.nuts
••••••••.••
Inless steel table flatware
able knives, table forks,
able spoons)
.•••.•••<
80,000,000
Calendar Year 5,000,000 Pound
Nov. 1, 1960Oct. 31, 1961
69,000,000
Pieces
3,819,556
Quota Filled!/
As of March 31, 1961
As of March 31, 1961. Imports for consumption at the quota rate are limited to
50,161 pounds during the first three months of the calendar year.
Jased on preliminary data; subject to adjustment.
(over)
-2
Commodity
Period and Quantity
: Unit
Imports
: of
as of
:Quantity April 1. lgj
Absolute Quotas
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter)...
Rye, rye flour, and rye meal
Butter substitutes, including
butter oil, containing 45% or
more butterfat.
Tung Oil
* Imports through April 10, 1961.
12 mos. from
Aug. 1, 1960
July 1, 1960June 30, 1961
Canada
Other Countries
Calendar Year 1961
Feb. 1, 1961Oct. 31, 1961
Argentina
Paraguay
Other Countries
1,709,000
Pound
36,753*
140,733,957
2,872,122
Pound
Pound
122,967,888*
1,200,000
Pound
Quota Filled
18,770,577
2,230,313
711,188
Pound
Pound
Pound
4,909,007*
Quota Filled
m
•
319
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
THURSDAY, APRIL 13, 196l
D-78
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961, to
April 1, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955:
Commodity
Imports
as of
April 1, 1961
Established Annual
Quota Quantity
Buttons....
765,000
Cigars.....
180,000,000
Number
Coconut oil
403,200,000
Pound
33,025,920
Cordage....
6,000,000
Pound
678,826
Tobacco....
5,850,000
Pound
4,533,885
Gross
65,511
1,466,365
7
—' C_ KJ
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
THURSDAY, APRIL 13, 196l
D-78
The Bureau of Customs announced today the following preliminary
figures showing the imports for consumption from January 1, 1961, to
April 1, 1961, inclusive, of commodities for which quotas were established pursuant to the Philippine Trade Agreement Revision Act of 1955:
Commodity
Buttons......
Imports
as of
April 1% 1961
Established Annual
Quota Quantity
765,000
Gross
65,511
1,466,365
Cigars ,
180,000,000
Number
Coconut oil..
403,200,000
Pound
33,025,920
Cordage......
6,000,000
Pound
678,826
Tobacco.
5,850,000
Pound
4,533,885
3^
COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having -a staple-of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUEt Provided, however, thkt not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italys
Country of Origin
United Kingdom .
Canada
France . . . . . .
British India .
Netherlands • •
Switzerland . •
Belgium . . . .
Japan • • • • .
China . . . . .
Egypt • • • • •
Cuba . . . o
Germany . . . .
JL uaxy . . . .
•
Established
TOTAL QUOTA
4,323,457
239,690
227*420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263
5,482,509
^/ Included in total imports, column 2
Prepared in the Bureau of Customs.
7
Total Imports
I Established s
Imports
l7
: Sept. 20, I960, to s 33-1/3$ of : Sept. 20, I960
Total Quota : to Aoril 10. 1961
April 10, 1961
1,411,231
239,690
42,782
1,441,152
1,179,209
75,807
42,782
21,442
22,747
14,796
12,853
21,442
3,068
3,068
21,222
25,443
7,088
9,937
1,739,435
1,599,886
1,256,438
o_rv—-
TREASURY DEPARTMENT
Washington, D. C.
IMvIEDIATE RELEASE
THURSDAY. APRIL IS. lQ6l
D-79
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/Vr
Imports September 20, I960 - April 10, 1961
""
Country of Origin
Established Quota
Egypt and the AngloEgyptian Sudan ...
»
Peril
0B
• o
e
e
e
. „
British India
China
Mexico
Brazil
Union of Soviet
Socialist Republics ..
Argentina
Haiti
t
.
«
«
.
«.«...«««
Ecuador ..
s
783,816
2^7,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
Imports
50,569
Country of Origin
Established Quota
Honduras
Paraguay
Colombia .....
752
-LX dvj
.......
- 871
12*i
.........
e *
* »
195
2,2k0
71,388
•
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 ...
Trinidad, and Tobago.
21,321
5,377
16,004
689
1/ Other than Barbados, Bermuda, Jamaica,
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or more
Imports August 1, i960 - April 10, 1961
Established Quota (Global) - 45,6^6,^20 Lbs.
Staple Length
Allocation
1-3/8" or more
1-5/32" or more and under
1-3/8" (Tanguis)
•1-1/8" or more and under
1-3/8"
39,590,778
Imports
39,590,778
1,500,000
609,648
4,565,642
CnHUGT-X
_jra/s:
3XC1A3-VS
Imports
4,565,642
—
681
0
TREASURY DEPARTMENT
Washington, D. C.
M E D I A T E RELEASE
THURSDAY. APRIL 13, 1Q61
23
D-79
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quot
as
established by the President's Proclamation of September 5, 1939, as amended
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3 A "
Imports September 20, i960 - April 10, 196f
"
~
Country of Origin
^ypt and the AngloEgyptian Sudan
Peru
British India
China
Mexico
Brazil
Union of Soviet
Socialist Republics
Argentina
Haiti
t
Ecuador
Established Quota
783,816
247,952
2,003,^83
1,370,791
8,883,259
618,723
^75,124
5,203
237
9,333
Imports
Country of Origin
Honduras
Paraguay
50,569
Colombia
,
Iraq
British East Africa ...
8,883,259
Netherlands E. Indies .
618,721
Barbados
l/Other British W. Indies
Nigeria
2/0ther British W. Africa
3/0ther French Africa ...
Algeria and Tunisia ...
Trinidad, and Tobago.
1/ Other than Barbados, Bermuda, Jamaica,
2/ Other than Gold Coast and Nigeria.
3/ Other than Algeria, Tunisia, and Madagascar.
Cotton 1-1/8" or more
Imports August 1, i960 - April 10, 1961
Established Quota (Global) - 45,656,420 Lbs.
Staple Length
1-3/8" or more
1-5/32" or more and under
Allocation
39,590,778
Imports
39,590,778
1-3/8" (Tanguis)
1-1/8" or more and -under
1,500,000
609,648
1-3/8"
Established Quote1
752
871
124
195
2,240
71,388
21,321
5,377
16,004
689
Iirvoorts
•»
681
-
COTTON WASTES
(In pounds)
^ 2 ? R ^!T» J S S m c ™ r 0 n \ C ° U o n h&vine*
staple of less than 1-3/16 inches in length, COMBER
™
K
,
S
SLIVER WASTE, AND ROVING WASTE, WETHER OR MOT MANUFACTURED OR OTHERWISE
ADVANCED Itf VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
?! f+Ti i °?Z°n !'astes other than comber wastes made from cottons of 1-3/16 inches or more
« ? « & ! " i 6 n f ^ " th€" Case'o f t h & foU -°"ine countries: United Kingdom, France, Netherlands,
Switzerland* Belgium, Germany, and Italys
Country of Origin
: Established
s TOTAL QUOTA
United Kingdc. . . . . .
;
B553_-I__* ,-//..:;
ife?
Total Imports
sEstablished s i m p o r t s
l7
Sept. 20, I960, to s 33-1/3? of x Sept. 20, I960
April 10, 1961
t Total Quota ; to Anrtl 10. 1961
4,323,457
1,411,231
42:?82 75 807
Netherlands . . . . . . .
68,240
Switzerland . . . . . . .
44,388
el ium
? S
••
38,559
Japan . . . . . . . . . .
341,535
China . . . . . . . . . .
17,322
Egypt
.
8,135
Cuba
6,544
1
07
6 329
Jf '^ * ^ >
21,222 25,443 9 93;
Italy . . . . . . . . . .
21.263
5,482,509
1/ Included in total imports, column 2.
Prepared in the Bureau of Customs.
>
1,441,152
1,179,209
«.^
2i,442
.
3,o68
.
I
.
.
1,739,435
22,747
14 796
12)853
'
- "-
y^gg
1,599,886
21 442
*i»m
3 06s"
J 0bS
»
9
»937
1,256,438
TREASURY DEPARTMENT
Washington, D* C*
1MUSDIATE RELEASE
THURSDAY, APRIL 13, 196l
D-80
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? DNMANUFACTUBSD LEAD AS© ZINC CHARGSABLS TO THE OUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 195*
QUARTERLY QUOTA PERIOD - January !, J36! - March 31, 1961
IMPORTS • January I, 1961 - March 31, 1961
ITEM 394
ITEM 393
ITEM 392
: Lead bullion or base bullion,
t lead in pigs and bars, lead
:
8
Lead-bearing ores, flue dust, i dross, reclaimed lead, scrap
: Zinc-bearing ores of all kinds,: Zino la blocks, pigs, or slabs;
and mattea
: lead, antl&onlal lead, anti: except pyrites containing not : old and worn-out zino, fit
s aonial scrap lead, type metal, :
over 3^ of lino
x only to be reaanufactursd, zino
t all alloys or combinations of s
*
dross, and zino skinmlngs
i
lead n«s«p»f«
._*_
I
___.
_aa^9rly~CbWa
:r&iar$ar~lyQuota
: Quarterly (_iota
:_uarier_y Quota
t Dutiable Lead
Imports i Dutiable Lead
Imports i Dutiable Zins
laports % By Weight
Imports
(Pounds}
-------------- J ^ - _ - J
(Pounds)
(Pounds)
ITEM 391
Country
of
Produotion
Australia
10,080,000
10,080,000
23,680,000
23,680,000
Belgian Congo
Belgium and
Luxemburg (total)
Bolivia
5,040,000
Canada
13,440,000
13,^0,000 15,920,000
Mexico
Peru
16,160^000
16,160,000
Un* So* Afrioa
14,880,000
I »f,380,000
Yugoslavia
6,560,000
5^*8,8*7
7,520,000
6,732,621
37,840,000
35,738,91*0
3,600,000
!, 10*4,072
5,0*40,000
15,920,000
66,430,000
50,5H7,398
Italy
All other foreign
countries (total)
5,440,000
6,560,000
36,880,000
36,880,000 70,480,000
70,U80,000
6,320,000
3,W,935
12,880,000
12,877,310 35*120*000
35,1x0,000
3,760,000
3,759,602
6,080,000
6,080,000
_
15,760,000
15,759,970
6,080,000
6,080,000 17,840,000
I7,8»*O,OO0
TREASURY DEPARTMENT
Washington, D* C»
Q9£
IMMEDIATE RELEASE
THURSDAY, APRIL 13, 196l
D-80
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION 0? DN_ANUFACTURED LEAD AND ZINC CHARGEABLE TO THE GUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO* 3257 OF SEPTEMBER 22, 135*
QUARTERLY QUOTA PERIOD • January f, 136! - March 31, 1961
IMPORTS • January I, 1961 - March 31 * 1961
ITEM 391
Country
of
Production
Australia
ITEM 392
i Lead buflion or base bullion,
I lead in pigs and bars, lead
Lead-bearing ores, flue dust,: dross, reslai-ad load, scrap
and _attes
: lead, antlsonlal lsad, ar.ti: aonial scrap load, type _atal,
j all alloys or oorabinatioaa of
t.
load n«s«p»f«
-iartarly Cs_ota
:&&rtarly""Quota
i Dutiable. Lead
Iaports : Dutlabla Laad
Icport3
(Pounds)
(Pounds)
10,080,000
f0,030,000
23,680,000
ITEM 394
ITEM 393
:
t
t
%
: Zlne-bsaring ores of all kinds,: Zino in blooks, pigs, or slabs;
i except pyrites containing not : old and vorn-out zino, fit
t
orer yfc °* * l n o
* °aly *Q &• reaanufactursd, zino
s
t
dross, and zino skinmings
i
:
: Quarterly __cta
:Quarterly Quota
: Dutiable Zinc
Import3 : By
ffeljght
Iaports
(Pounds)
(Pounds)
23,680,000
Belgian Congo
5,440,000
Belgium and
Lux9a burg (total)
Bolivia
5,040,000
Canada
13,440,000
«3,uuo,ooo 15,920,000
Mexico
Peru
16,160,000
16,160,000
On. So. Afrioa
14,880,000
m,380,000
Yugosloria
6,560,000
7,520,000
6,732,62!
37,840,000
35,756,S*C
3,600,000
J,)CJ*,072
5,0*»0,000
15,320,000
66,430,000
50,5^7,398
Italy
All other foreign
oountries (total)
5,^,^7
6,560,000
36,880,000
36,380,000 70,480,000
70^1*80,000
6,320,000
3,^76,935
12,880,000
12,877,310 35,120,000
35,J£0,000
3,760,000
3,759,602
15,760,000
15,759,970
6,080,000
6,080,000 17,840,000
I7»*D0,0C0
6,080,000
6,080,000
TREASURY DEPARTMENT
Washington, D* C*
IMMEDIATE RELEASE
THURSDAY, APRIL 13, 196l.
D-81
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 1958
QUARTERLY QUOTA PERIOD - Aprif I, 1961 - June 30,'1961
IMPORTS- *prll I, 1961 . April II, 1961
ITEM 391
Country
of
Production
Australia
ITEM 392
Y Lead bullion or base bullion,
t lead in pigs and bars, lead
Lead-bearing ores, flue dust,1 dross, reclaimed lead, scrap
and mattes
: lead, antifflonlal lead, antI: aonlal scrap lead, type metal,
1 all alloys or combinations of
t
lead n.s.p.f.
:Quarterly Quota
sQuartarly-Quota
t Dutiable Lead
Imports 1 Dutiable Lead
Imports
(Pounds)
(Pounds)
10,080,000
5,632,959
23,680,000
ITEM 394
ITEM 393
:
8
t
8
: Zino-bearing ores of all kinds,: Zino in blocks, pigs, or slabs;
: except pyrites containing not 1 old and worn-out zino, fit
:
over 3$ of zino
s only to be remanufaotured, zino
s
t
dross, and zino skimmings
1
:
: Quarterly Quota
tQuarterly Quota
: Dutiable Zinc
Imports : By
ffelaht
Imports
(Pounds)
(Pounds)
5,970,053
Belgian Congo
5,440,000
Belgium and
Luxemburg (total)
7,520,000
195,925
37,840,000
2,603,021
Bolivia
5,040,000
1,579,1 *>7
Canada
13,440,000
8,1 Mi,878
15,920,000
2,122,509
66,430,000
5,011,837
Italy
3,600,000
Mexico
Peru
16,160,000
On* So* Afrioa
14,880,000 ll»,880,000
836,1^9
Yugoslovia
All other foreign
countries (total)
6,560,000
6,^60,000
36,880,000
•1,125,075
12,880,000
1,603,278 35,120,000
70,480,000
11,791,501
6,320,000
MS,1*73
2,290,072
3,760,000
99,980
17,8^0,000
6,080,000
6,080,000
•»
15,760,000
3»8H5»"»I9
6,080,000
6,080,000
17,840,000
TREASURY DEPARTMENT
Washington, D* C«
327
B&SDIATE RELEASE
THURSDAY, APRIL 13, 196l.
D-81
PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF UNMANUFACTURED LEAD AND ZINC CHARCSASLS TO THE OUCTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMATION NO. 3257 OF SEPTEMBER 22, 1?5«
QUARTERLY QUOTA PERIOD - AprIf I, l$6l - June 30,'l96l
IMPORTS - April I, IS6| - April II, l$6|
ITEM 391
Country
of
Production
Australia
ITEM 392
ITEM 393
ITEM 394
V Lead "buTQon or base bullion, :
8
1 lead in pigs and bars, lead
1
t
Lead-bearing ores, flue dust,: dross, raolai-sd lead, scrap
: Zinc-bearing ores of all kinds,: Zino la blooks, pigs, or slabs;
and sattes
: lead, antlaonlal load, anti: except pyrites containing not : old and worn-out zino, fit
: aoaial scrap load, type satal, :
orer 3^ *? tXno
1 only to be reaanufactured, zinc
: all alloys or ooabinatlona of :
dross, and zino skinzolngs
i
load n.so.f.
1
Quarterly CSnota
:&ariarly Quota
tQoartarly __ota
Quarterly Quota
t Putlabia Lead
Iaports : Dutiabla Laad
I_port3 1 Dutiable Zinc
Iaoorta
By height
Iaports
(Pounds)
"~
(Pounds
(Pounds)
10,080,000
5,632,959
23,630,000
3,970,053
Belgian Congo
5,440,000
Belgium and
Luxemburg (total)
7,520,000
155,925
37,840,000
2,603,021
Bolivia
5,040,000
1,579,1»»7
Canada
13,440,000
8,1^,878
15,320,000
2,122,509
66,430,000
5,011,637
Italy
3,600,000
Mexico
Peru
16,160,000
Vn. So. Africa
14,880,000
836,^9
6,560,000
»*, t2J,075
70,480,000
11,791,501
6,320,000
HS,k73
12,880,000
1,603,278
35,120,000
2,290,072
3,760,000
S9,980
15,760,000
3,8»t5,M9
6,080,000
6,080,000
17,840,000
17,8^0,000
6,080,000
1^,880,000
Yugoslovia
All other foreign
countries (total)
36,880,000
6,560,000
6,080,000
10Q
w C w
§mtmmmm$
«»* • « * *• •• # •#«# *
• • » « * * • • * »• * #4 • • « * •
• #*#
329
TREASURY DEPARTMENT
WASHINGTON, D.C.
/7/?6/
IMT__IATE RELEASE,
During 9t0msmey 196l, market transactions
in direct and guaranteed securities of the
government for Treasury investment and other
accounts resulted In net s**«e by the Treasury
Department offyQfav&t&g^SQQ•
0O0
TREASURY DEPARTMENT
TVi
O \J
pifffWHl^lWaiWWiWI|l|HlllllMIII_^
WASHINGTON, D.C.
April 17, 1961
IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN MARCH
During March 1961, 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 $56,144,200.
0O0
D-82
TREASURY DEPARTMENT
WASHINGTON, D.C
April 17, 1961
IMMEDIATE RELEASE
TREASURY DETERMINATION ON ALUMINUM CHLORIDE
UNDER ANTIDUMPING ACT
The Treasury Department has determined that aluminum chloride
(anhydrous) manufactured by Welland Chemical Company of Canada,
Ltd,; Port Colborne, Ontario, Canada,, is not being, nor likely to
be, sold in the United States at less than fair value within the
meaning of the Antidumping Act of 1921- Notice of the finding will
be published in the Federal Register.
Appraising officers are being instructed to proceed with the
appraisement of this merchandise without regard to any question
of dumpingo
The dollar value of imports of aluminum chloride (anhydrous)
received from this manufacturer during the year i960 was approximately $27,250.
0O0
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 14, 1961
FOR RELEASE: A.M. NEWSPAPERS
TUESDAY, APRIL 18, 1961
NEW APPOINTMENTS IN TREASURY DEPARTMENT
The U. S. Treasury Department today announced the appointment
of Mr. Charles A. Dorsey, and Mr. Robert C. Vowels, as economists,
and Mr. Jesse Johnson as management analyst.
Their employment brings to a total of four the number of Negroe
appointed this year to important positions of this kind in the
Treasury Department. They are the first Negroes ever to be appointe
to such posts in Treasury.
The appointments resulted from Treasury policies adopted
following President Kennedy's executive order establishing the
President's Committee on Equal Employment Opportunity.
On April 4 the Treasury announced the appointment of Dr. Samuel
Westerfield, Dean of the School of Business Administration at
Atlanta University, as Associate Director of the Office of Debt
Analysis.
Mr. Johnson will be a ma^agement^analy#t in the Office of the
Administrative Assistant Secretary. Mr. Dorsey will be a fiscal
economist in the Office of Debt Analysis and Mr. Vowels will be a
fiscal economist in the Office of Tax Analysis. Mr. Johnson and
Mr. Dorsey assumed their duties Monday, April 17th. Mr. Vowels
will enter upon his duties after the close of the school semester
at Howard University where he is a member of the faculty.
Mr. Johnson was an employee of Howard University and later
became an assistant with the President's Committee on Government
Contracts. He holds an LL.B. degree from Howard University and
is 4l years of age. He is a former resident of St. Louis, Missouri,
but now resides at 4107 Third Street, N. W., Washington, D. C.
Mr. Dorsey, a native of Baltimore, was a research assistant
in the Office of Naval Operations, Navy Department. He holds
M.A. and B.A. degrees from Howard University and is 39 years old.
He resides at 1215 46th Street, S.E., Washington, D. C.
Prior to his service as an instructor in economics at Howard
University, Mr. Vowels was with the District of Columbia Public
Library. He, too, is a graduate of Howard University and holds
degrees of B.A. and M.A. He is a native of Baltimore, Maryland,
but resides now in Washington, D. C. at 130 Webster Street, N.W.
Mr. Vowels is 35 years old.
D-83
0O0
TREASURY DEPARTMENT
332
WASHINGTON, D.C.
April 14, 1961
FOR RELEASE: A.M. NEWSPAPERS
TUESDAY, APRIL 18, 1961
NEW APPOINTMENTS IN TREASURY DEPARTMENT
The U. S. Treasury Department today announced the appointment
of Mr. Charles A. Dorsey, and Mr. Robert C. Vowels, as economists,
and Mr. Jesse Johnson as management analyst.
Their employment brings to a total of four the number of Negroes
appointed this year to important positions of this kind in the
Treasury Department. They are the first Negroes ever to be appointed
to such posts in Treasury.
The appointments resulted from Treasury policies adopted
following President Kennedy's executive order establishing the
President's Committee on Equal Employment Opportunity.
On April 4 the Treasury announced the appointment of Dr. Samuel
Westerfield, Dean of the School of Business Administration at
Atlanta University, as Associate Director of the Office of Debt
Analysis.
Mr. Johnson will be a management analyst in the Office of the
Administrative Assistant Secretary. Mr. Dorsey will be a fiscal
economist in the Office of Debt Analysis and Mr. Vowels will be a
fiscal economist in the Office of Tax Analysis. Mr. Johnson and
Mr. Dorsey assumed their duties Monday, April 17th. Mr. Vowels
will enter upon his duties after the close of the school semester
at Howard University where he is a member of the faculty.
Mr. Johnson was an employee of Howard University and later
became an assistant with the President's Committee on Government
Contracts. He holds an LL.B- degree from Howard University and
is 4l years of age. He is a former resident of St. Louis, Missouri,
but now resides at 4107 Third Street, N. W., Washington, D. C.
Mr. Dorsey, a native of Baltimore, was a research assistant
in the Office of Naval Operations, Navy Department. He holds
M.A. and B.A. degrees from Howard University and is 39 years old.
He resides at 1215 46th Street, S.E., Washington, D. "C.
Prior to his service as an instructor in economics at Howard
University, Mr. Vowels was with the District of Columbia Public
Library. He, too, is a graduate of Howard University and holds
degrees of B.A. and M.A. He is a native of Baltimore, Maryland,
but resides now in Washington, D. C. at 130 Webster Street, N.W.
Mr. Vowels is 35 years old.
o0
D-83
°
33d
, l « l « l * l * , B * i u w * l ' l « M ( l M; W V , W I
*«"*
FEli^SE A. *, W S M P t l S , Tu
i—11 >
im»»i<i)»i<i|iiiw^mliillliW»iiiiiiiil»*MlW^^
*M
April 17, 1961
a 18 hm*$mm&m*w
•AM
m OF TKKIffi
S teEfti BXi*L
wW^Mims
tbat the tenders for two series ej
nf tbo M I I * ^|?i..i§j§i^^
wero offerod o© April Iff nere
feadora were invited for "1,100,0)0,
' , or theroabcute, of l82~daj Mill
and t*
othor sories
t
oroabouta, of
details of itte
f&:#JI OF
ui^i* wumt
I
^rioe
Migh
l8f*4ay T n u v t j r bills
October UJ^ l?6l
mmmmmmmmmmmuimmmmmmmmm
pprex. Ecpiv. S
*mrmmmmmmmrmmmmmmm*
f§.7;
93.758
32 percent o f the amount of 91-day bills bid for at the loir price W A S accepted
W'.mmt o f llf Htty bills bid for «& tbo low price was aedepted
TOTAL
nrnrws AmjotD wm km
Metric &
¥*--.
Aee*pt«d
Awpllod For
^8„»,0GO
1,362 !»7»
1?,
Chleaeo
St. Loo la
Ballw
San Froneiooo
fsnfA t *
1$,7k3,000
39,0(9,000
17,789,000
53,306,000
»9?7,<
*£ Bl&RlCtSt
llJI^IiQ®
t
t
t
i
3
l£9f$03f0Q0 t
29,#§7,000 t
9,?13,0®O i
16,069,000
s
f00§
s
itS,536,000
1*SI536
ti
# QQO
m>mmmmmmm**mimmmmm
11,100,229,000
«/
6,289,QOG | J,§TL
279 058,000
2 396,000
6 701,000
1
7,396,000
16,386,000
1,701,000
5,239,000
720,000
106,603,000
692,000
7,692,000
136,000
5,686,000
1,535,000
4,180,000
13,076,000
58.739.000
Uli.375.000
I
*
,535,000
11,1112,038,000 1*00,186,000 \j
at the average price of 99.U
a/ Inelndoo $fUi,09t,
U / Inoludaa #§1,725,0$® M o a m p o t i t l f o tender* accepted at the average price of 98.75*
' m-rmt invested, the return I
tf On a eoupozi'loMo of t*o M M I iMgtl- &**d for tfee
these bills would provide ylelda of ?.3li$> for the91-dey bill*, and 2.5*9» ' « *
l8?~d&y bills. I s t o r M t ratoa on bill* aro quoted. in torn* of baixfe diaeouai witli
tfee return rolatod to tbo faoo ^ o u a t of the bills payable at maturity rather thai
o r of daya related to a 360*4*1
the a&oinst invested ar?d their length in actual
year, la contrast, yields on cortiflcatea, note*, and bofida aro computed in terai
of interest on the amount invested, ami relate the immber of days remaining la aa
in the period, vitb senlaaaat
interest payment period to the- actual m m b o r of
compounding If ^ore than ona eoupoa period is
f
-L\
Ms/h^
TREASURY DEPARTMENT
SLW,,o-,'f:; n ^ r | __ a __
"•r\V"Mia)W!-l-V->.>- ..MJI.!IJII!iMJ..M»«,„^
$3
^J.„iJ_UlJM.lJLUM*l.lMUiJIMi_i 1 JM-l«lBJaWi_lfl»^aB
WASHINGTON, D.C
April 17, 1961
^RELEASE A. M. NEWSPAPERS, Tuesday, April 18, 1961.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
reasury bills, one series to be an additional issue of the bills dated January 19, 196l,
ad the other series to be dated April 20, 196l, which were offered on April 12, were
pened at the Federal Reserve Banks on April 17. Tenders were invited for $1,100,000,000
r thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day bills.
ie details of the two series are as follows:
iNGE OF ACCEPTED
DMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing July 20, 1961
Approx. Equiv.
Price
Annual Rate~
99.1*27
2.267$
99.1*17
2.306$
99. 1*21
2.292$ 1/
182-day Treasury bills
maturing October 19, 196l
Approx. Equiv.
Price
Annual Rate,
2.1*1*9$
98.756
2.1*61$
98.758
2.1*53$ 1/
82 percent of the amount of 91-day bills bid :for at the low price was accepted
89 percent of the amount of 182-day bills bid for at the low price was accepted
DTAL 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
Accepted
Applied For
Accepted
22,011*,000
3,57U,000
$
6,269,000
279,058,000
695,238 ,000
908,696,000
2,396,000
13,820 ,000
7,396,000
6,086,000
3l*,6l3,000
16,386,000
1,701,000
Il,81i9,000
1,701,000
1*,093,000
21*, 297 ,000
5,239,000
1*1,720,000
169,503 ,000
106,603,000
3,692,000
29,287 ,000
7,692,000
3,136,000
9,913 ,000
5,686,000
5,875,000
28,069 ,000
13,076,000
1*,180,000
16,089 ,000
i*,535,ooo
l*l*,375,OQO
1*5,536.000
58,739,000
$1,100,229,000 a/ $1,11*2,038,000
$1*00,186,000 b /
Includes $2l*l*,096,000 noncompetitive tenders accepted at the average price of 99.1*21
Includes $51,725,000 noncompetitive tenders accepted at the average price of 98.758
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.3l*$, for the 91-day bills, and 2.52$, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
v.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.
Applied For
1
1*7,591*,000
1,362,207,000
28,820,000
37,358,000
12,61*9,000
31,777,000
253,223,000
3I1,91*2,000
15,21*3,000
39,069,000
17,789,000
53,306,000
$1,933,977,000
F
TREASURY DEPARTMENT
__B___BUI,nL_IIPIMIi______B_M!BMwiiiwi
mi
• i iig__gBnB____g_nifflMlfflm^
WASHINGTON, D.C.
April 18, 1961
IMMEDIATE RELEASE
WITBDHOIDING OF APPRAISEMENT ON
JAIOUS3pS«IX)UVRE-SI2__D SHEET GLASS
The Treasury Department is instructing customs field officers
to withhold appraisement of sheet glass from Czechoslovakia, imported in jalousie louvre sizes, pending a determination as to
whether this merchandise is being sold in the United States at
less than fair value. Notice to this effect is being published
in the Federal Register.
Under the Antidumping Act, determination of sales in the
United States at less than fair value would require reference of
the case to the Tariff Commission, which would consider whether
American industry was being injured. Both dumping price and in-*
jury must be shown to justify a finding of dumping under the law.
The complaint in this case was received on February 10, 1961.
The dollar value of imports received during the last 6 months of
i960 was approximately $219>000.
TREASURY DEPARTMENT
-—
WASHINGTON, D.C.
April 18, 1961
IMMEDIATE RELEASE
TREASURY DECISION ON RAYON STAPLE FIBER
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that rayon staple
fiber from West Germany, except as to importations of "Cuprama11
rayon staple fiber manufactured by Farbenfabriken Bayer, is being,
or is likely to be, sold at less than fair value within the meaning of the Antidumping Act.
Accordingly, this case is being referred to the United
States Tariff Commission for an injury determination.
Notice of the determination and of the reference of the
case to the Tariff Commission will be published in the Federal
Register.
The dollar value of imports received during the year i960
was approximately $5,000,000.
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 18, 1961
IMMEDIATE REIEASE
TREASURY DECISION ON RAYON STAPLE FIBER
UNDER ANTIDUMPING ACT
The Treasury Department has determined that rayon staple
fiber from Cuba is being, or is likely to be, sold at less than
fair value within the meaning of the Antidumping Act.
Accordingly, this case is being referred to the Iftiited
States Tariff Commission for an injury determination.
Notice of the deteiinination and of the reference of the
case to the Tariff Commission will be published in the Federal
Register*
The dollar value of imports received during the year i960
was approximately $732,000.
TREASURY DEPARTMENT
_____
WASHINGTON, D.C.
IMMEDIATE RELEASE
Ap3?il l8
'
The United States Tariff Commission has determined that
an industry in the United States is being, or is likely to be,
injured by reason of the importation of portland cement, other
than white, nonstaining portland cement, from Sweden. Accordingly, the Treasury Department is issuing a finding of dumping
with respect to this merchandise imported from Sweden. Treasury
Decision 55369 to this effect is being published in the Federal
Register and in a weekly issue of Treasury Decisions.
The dollar value of imports of portland cement, other
than white, nonstaining portland cement, received from Sweden
during i960 was approximately $577,000.
19Sl
<*-» \J _*
April *§, l$m.
WBH&SXS
immfflSM taw wmmmtvm ira_s WBJL WS
mom TO gistra™» i&ssiv HUT 15, nil
*Mt teWem of *3,#T* PLUS* <rf **3^£ *»**tfi©«*«* of laS«bt«_ie«
ef msetm B-Uft* <!**#& ?Ay i3, l $ i % souring Mir lf>, lfft, as* balder*
"fft 1 1 in ii_nmfc.i imiiii». *% 1i "rf&SKEJ* TiTiiiM%nfr-r nttiMi^f _i dii' __M_& ^t _* «f3&»L"J I_KX It %[ MMija.lt1 __h •*•«—PPE ~ un Jhnjjf '^-.it in mi'MM iim #1 ift iWilii
jpe^mM^ 1^ <*SB5&* asPM*tBg wir *9JI ^-^i# m u m aga $0 oxxtr^a pf^MB^sw
rt^ta tn fMttagjy f&rtMr j&#Miiig& iter awtr a^^nriti«» tofea0ffer&& «^rly
n**t s^t-is, n * mimF&m
M i l be s*&M off in vmh*
m&mMm$m
ma& mtm*
sg^e^ttag #?#BS aUllM*
$^™^im%**Ti¥ Sfe##HB ollllm of t&cr MrtlJ!Uprt*§
vim %* T#&rt&&i fey a^mser £$§&% or ais&r issusa^ $f ite^t mmmm? oblige
tiofia oJ8toi$i f^i* e&ak e^bawtj*tiOT$i* Bs^Ni^fib^ra to ^&&t§. W0&
IMM*
OP
tomtom* 1^0 b&Ul tte &ai^iria£g e^rl^fl&a&^a »&d _s8t€* ss&y* if t^#^ wia&u &#soai1
To tte #5ctemt -a'^^erIbera ar*? altof't^i tbt^ $ai? a^o^r IM^i^ %l^i f«aa^ry
msmgfc tbe M^tet^f a«e^ritl^o in M « n of cassii in saafei^ £&&*& pa^wmta,
f^t ip^miaasM^t of the Urm
Fis-AsBt.Sccty; kfWf&l
®t mm mm imam* or iaa^s, will be *ad*
33S
TREASURY DEPARTMENT
WASHINGTON, D.C.
N^^X
April 18, 1Q61
FOR IMMEDIATE RELEASE
TREASURY ANNOUNCES THAT PREEMPTIVE RIGHTS WILL NOT
ATTACH TO SECURITIES MATURING MAY 15, 1961
The holders of $3,674 million of 4-3/8$ certificates of indebtedness
of Series B-I96I, dated May 15, i960, maturing May 15, 1961, and holders
of $4,078 million of 3-5/854 Treasury notes of Series B-1961, dated
December 1, 1958> maturing May 15, 1961, will not be offered preemptive
rights to exchange their holdings for new securities to be offered early
next month. The maturing certificates and notes, aggregating $7,752 million,
will be paid off in cash. Approximately $4,800 million of the certificates
and notes are publicly held.
The necessary funds to pay off the maturing certificates and notes
will be provided by another issue, or other issues, of direct Treasury obligations offered for cash subscriptions. Subscribers to such new issue, or
issues, who hold the maturing certificates and notes may, if they wish, deposit
them at face value in lieu of any cash down payments required with subscriptions «
To the extent subscribers are allotted the new securities, the Treasury will
accept the maturing securities in lieu of cash in making final payments.
The announcement of the terms of the new issue, or issues, will be made
later this month.
-0-
D-85
33?
Church of
^Alexandria/'
the BoageHo-MHbe
Depar-tmont of-
^
1 Dlocese-of Virginia.
Mr* Hunt is a member of the District of Columbia Bar, Bar of the
U.S. Court
of Appeals for the District of Columbia, and the Bar of
the United States Supreme Court. He is also a member of the District
of Columbia and American Bar associations.
Married to the former Mary Jane Pairbairn Abdill, Mr. Hunt
resides at 3617 Gunston Road, Alexandria. They have four children.
0O0
- 2 For the past 10 years, Mr. Hunt has been engaged in law practice
with Gardner, Morrison & Rogers, of Washington, D.C. He came to that
firm from the Yale Law School, where he received his LL#B. degree in
1951.
Mr. Hunt has been active in civic and political affairs in
Alexandria and Washington over the past several years. He has been
a member of the Alexandria City Democratic Committee since 1955* havi
served as its chairman since 1959. He was also Chairman of the
Alexandria Delegation to the Virginia State Democratic Convention
last year, and from 1956 to i960 was Vice Chairman of the Committee
of
for Job Opportunities /Washington, D. C #
Prior to attending the Yale Law School, Mr. Hunt received his A.B.
degree in 19^6 from the University of North Carolina, and was elected
Phi Beta Kappa. He served in the U.S. Army until 19^8. -While uUiuidl
33 Q
_f
April 19, 1961
FOR IMMEDIATE RELEASE
DOUGLAS?HUNT NAMED SPECIAL ASSISTANT TO _ B UNDER SECRETARY
•OF TR_13UR¥-^^^^
'y- «^>»* «*
-w~
v H'w
Secretary.
Mr. Hunt has/^een assigned to ser^e as the principal assistant to
Onder Secreta_*y Henry H. Fowler in/all phases of/the latter1 s
s. Mr. Hunt's appointment becomes effective
s
*
• *
*
Treasury Secretary Douglas Dillon announced today the appointment
^ Ui (^A^WX^CVVN dGtfokVv^ A^dLZ^fc <—
Df Mr. Douglass Hunt,A csB Alexandria, Va., as Special Assistant to the
K
Jnder Secretary.
In this capacity, Mr. Hunt will aid Under Secretary Henry H.
?owler in carrying out all phases of the Under Secretary's
responsibilities.
^
&•€•'• / .*
C*>».A
Mr. Hunt commences ^hi^dtrb
"
*
•
0_ 1 i
O""*
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 19, 1961
FOR IMMEDIATE RELEASE
DOUGLASS HUNT NAMED SPECIAL ASSISTANT TO
UNDER SECRETARY FOWLER
Treasury Secretary Douglas Dillon announced today the appointment of Mr. Douglass Hunt, a Washington attorney residing in
Alexandria, Va., as Special Assistant to the Under Secretary.
In this capacity, Mr. Hunt will aid Under Secretary Henry H.
Fowler in carrying out all phases of the Under Secretary's
responsibilities. Mr. Hunt took the oath of office today.
For the past 10 years, Mr. Hunt has been engaged in law practice
with Gardner, Morrison & Rogers, of Washington, D. C. He came to
that firm from the Yale Law School, where he received his LL.B. degree
in 1951.
Mr. Hunt has been active in civic and political affairs in
Alexandria and Washington over the past several years. He has been
a member of the Alexandria City Democratic Committee since 1955j
having served as its chairman since 1959. He was also Chairman of
the Alexandria Delegation to the Virginia State Democratic Convention
last year, and from 1956 to i960 was Vice Chairman of the Committee
for Job Opportunities of Washington, D. C.
Prior to attending the Yale Law School, Mr. Hunt received his
A.B. degree in 1946 from the University of North Carolina, and was
elected to Phi Beta Kappa. He served in the U. S. Army until 19^8.
Mr. Hunt is a member of the District of Columbia Bar, Bar of
the U. S. Court of Appeals for the District of Columbia, and the
Bar of the United States Supreme Court. He is also a member of the
District of Columbia and American Bar Associations.
Married to the former Mary Jane Fairbairn Abdill, Mr. Hunt
resides at 3617 Gunston Road, Alexandria. They have four children.
0O0
D-86
34i
- 2 attorneys and agents and, in general, acts as liaison between
the Treasury and the bar associations and associations of
C.P.A.s in matters relating to Internal Revenue practice.
0O0
342
DpflJTT - 4-17-61
FOR^RELEASEt^
TREASURY PROMOTES THOMAS J. REILLY
TO DIRECTOR OF PRACTICE
The Treasury Department today announced the promotion of
Mr. Thomas J. Reilly to the position of Director of Practice.
Mr. Reilly, a native of Washington, D.C, has been with
the Planning and Research Division of the Internal Revenue
Service since 1958. Before joining the Government Mr. Reilly
had extensive experience in the practice of law, specializing
in tax Blatters, and as an executive in private business.
Mr. Reilly attended the University of Pennsylvania and
studied accounting at Rutgers University. He received his
Bachelor of Laws degree from Georgetown University. He is a
member of the bar of the District of Columbia, Texas and
Oklahoma as well as of the Supreme Court of the United States.
The Director of Practice acts upon applications for
enrollment by persons to practice as attorneys or agents before
the Internal Revenue Service. He institutes and provides for
the conduct of disciplinary proceedings relating to enrolled
A F7
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 18, 1961
FOR IMMEDIATE RELEASE
TREASURY PROMOTES THOMAS J. REILLY
TO DIRECTOR OP PRACTICE
The Treasury Department today announced the promotion of
Mr. Thomas J. Reilly to the position of Director of Practice.
Mr. Reilly, a native of Washington, D. C, has been with the
Planning and Research Division of the Internal Revenue Service
since 1958. Before joining the Government Mr. Reilly had extensive
experience in the practice of law, specializing in tax matters,
and as an executive in private business.
Mr. Reilly attended the University of Pennsylvania and studied
accounting at Rutgers University. He received his Bachelor of
Laws degree from Georgetown University. He is a member of the bar
of the District of Columbia, Texas and Oklahoma as well as of the
Supreme Court of the United States.
The Director of Practice acts upon applications for enrollment by persons to practice as attorneys or agents before the
Internal Revenue Service. He institutes and provides for the
conduct of disciplinary proceedings relating to enrolled attorneys
and agents and, in general, acts as liaison between the Treasury
and the bar associations and associations of C.P.A.s in matters
relating to Internal Revenue practice.
0O0
D-87
-3 •
344
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 intere
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amoun
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 e
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, wheth
on original issue or on subsequent purchase, and the amount actually received eith
upon sale or redemption at maturity during the taxable year for which the return i
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 -
iecimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be
xiade on the printed foiras and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorpo-
rated banks and trust companies and from responsible and recognized dealers in inve
rnent 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 b
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 January 26, 1961 y ( 91 days remaining until maturity date on
£&§&
July 27, 1961
jfci&ix
) 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 respe
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on April 27, 1961 > in cash or
other immediately available funds or in a like face amount of Treasury bills maturing April 27, 1961 Cash and exchange tenders will receive equal treatment.
_p$a$E
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 as_y exem^tion^ as such, and loss
346
imftwtwt:*.
^w;^t»:«OK'K-».c#:w!
TREASURY DEPARTMENT
Washington
•^-IMNIEDIATE RELEASE *3_&b<_bcMx£ April 19, 1961
X3_£}g_C&XXXXXXXXX_QQQ^
TREASURY'S WEEKLY BILL OFFERING
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
April 27. 1961
9 In the amount
xfc5*
a
of $ 1.500.565.000 > s follows:
WL
91 -day bills (to maturity date) to be issued April 27, 1961 ,
in the amount of $ 1,100,000,000 , or thereabouts, representing an additional amount of bills dated January 26, 1961 ,
and to mature
July 27, 1961
, originally issued in the
amount of $ 500,051,000 , the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 400,000,000 , or thereabouts, to be dated
April 27, 1961 , and to mature October 26, 1961
ipEHJ
$3_fc£
The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their face a
will be payable without interest. They will be issued in bearer form only, and i
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (mat
value)•
Tenders will be received at Federal Reserve Banks and Branches up to the closir
hour, one-thirty o'clock p.m., Eastern Standard time, Monday, April 24, 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 t
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
I.II .HI ,••.,!• J-.!. ;.>n.j.m.i. .i.. »»•••.— i' i a i n . u g i f f « B » « « w ! " ' . II
WASHINGTON, D.C.
April 19, 1961
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
for, fwn6«*£?_!_Ur£ Separtmen*' by this Public notice, invites tenders
i? J 5 nnn n m ° L T ^ a s U T b * l l s *° t h e aggregate amount of
Jil!2St2025??0# °f ^reaboutB, for cash and in exchange for
J ^ S S ^ t e 1 ^ matu??i!?g A P r i l 2 ? ' 1961, in the amount of
$1,500,505,000, as follows:
91-day bills (to maturity date) to be issued April 27, 1961.
^ J J ? a m ^ n t of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated January 26, 1961, and to
!felnnrn^UnL27, I? 6 1 '
originally issued in the amount of
$500,051,000,
the additional and original bills to be freely
interchangeable.
*
1
1118
f0r
4oo 000 0
tarm !?"*^?
'
$ > > 0°> or thereabouts, to be dated
April 27, I96I,
and to mature October 26, 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
J
value). *
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty o'clock o.m., Eastern
Standard time, Monday, April 24, 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
benders 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
'rom others must be accompanied by payment of 2 percent of the face
D-83 of Treasury bills applied for, unless the tenders are
rniount
tccompanied by an express guaranty of payment by an incorporated bank
>r trust company.
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
January 26, 1Q61, (91 days remaining until maturity date on
July 27, 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 April 27, 196l,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing April 27, 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.
- 19 -
To achieve all these things will not be easy* But
with determination and perserverance ne should be able
to attain our goals. In the process, we can look forward
to a period of growth and prosperity during the Sixties
such as this nation has never known.
0O0
- 17 For another, President Kennedy has taken direct action in
the housing credit field which has helped to lower average
mortgage rates by more than a quarter of one percent since
the turn o£ the year.
Far more meaningful than interest rates, however, is
the quantity of funds flowing into investments. Here, we
see evidence of improvement in the mortgage credit area,
where, although rates are still on the high side, availability
of credit is no longer an inhibiting factor* We also see
increasing evidence of growing municipal and corporate borrowing.
Finally, since the budgetary deficits that are presently
envisioned are modest and bear no comparison to the deficit
of 1959, monetary policy will remain free to act in support
of business recovery. Therefore, the ,a&a£^ increases in
interest rates that characterized the 1958-59 period are not
likely to recur this time.
- 15 These changes will have a needed and favorable impact upon
our basic balance of payments deficit. We are not, however,
recausaending changes in t»x inducements for investment In
underdeveloped countries which are an essential part of
our overall program to help these countries grow*
I have briefly outlined our overall fiscal and budgetary
thinking* I have also told you something of our plans for
the immediate future as regards taxation*
Now* let me take up monetary policy. This is a field
where we face an entirely new situation brought about by
the recently achieved convertibility of foreign currencies.
Convertibility permits owners of liquid funds to shift them
freely from one world financial center to another in search
of higher Interest rates*
» 13 *
Tighter enforcement of the present law is not an adequate
solution, for it would put an unaeceptably heavy discretionary
burden upon Government tax auditors. What is needed is a
new and stricter legislative definition of allowable
deductions. This is what we are asking.
Second, we ax& asking for withholding at the source
on Interest md dividends* Our teat estimate is that about
three billion dollars of income from Interest and dividends
gems unreported every year* This situation is clearly unfair
to all wage earners and, indeed, to the majority of taxpayere.
He are asking that it be corrected by a workable withholding
provision that, as in the case of wages» will collect at the
source a substantial portion of the tax cm interest and
dividend incosie*
- 12 -
;:^C
And* as our econoi&y speeds mp* increased consumer and
business demand will expand the variety and volume of
goods produced$ thus creating new Jobs to replace those
eliminated by increased productivity. this is the way of
future progress.
The legislation the President has requested is carefully
designed to promote increased trending for modernization
and expansion. Its enactment is necessary to speed full
recovery and promote rapid growth thereafter* Initially,
it will result in some toss of revenue. To compensate for
this loss, he is asking that a number of serious tax defects
be corrected;
Firstf expense accounts *- mi area where abuse has
virtually become a national scandal.
- 10 An extensive review is now under ws^f and we expect to
present concrete recommendations to the Congress next
January*
In the meantime, there is one important tax reform
that cannot wait: This is legislation to spur the modernization
of our plant and equipment* It is an unpleasant fact that
owe plant equipment la growing older year by year* By contrast,
thanks to more liberal investment Incentives than are available
under our laws, Western Europe and Japan are modernising mt
a much faster rate • He must ntep txp our rate of modernization
if we are to maintain our nation's competitive position.
The installation of new and more efficient equipment is of
prime Importance in enabling us to meet foreign competition in
the drive for export markets which are so essential to improving
our balance of payments.
ft. "
W
W
* 9 Third, we must supply the ever-growing needs of
our municipalities: slum clearance, improved transportation,
modern sewage facilities, and increased water supply.
These needs are placing an unbearable burden upon our
larger cities*
We can and we must fulfill these n&e4*j u picni •HiitlE
c^SPI of hJS^flr ta^^g, Fortunately, if our economy operates
^t full capacity, our present tax system can yield a surplus
of several billion dollars* Our problem is not, therefore,
how to raise additional revenues but to get our economy
operating at higher levels. Moreover, in setting tax policy,
our most difficult task is not obtaining more revenue but
strengthening and modernising our whole tax system so as to
stimulate growth and improve equity. One of our major
objectives is thorough-going tax reform.
- gFirst, after careful reexamination, the President has
concluded that we ma®z increase our defense expenditures
in the coming fiscal year hf one m& one-half percent, or
about 650 million dollars* Surely* no one can logically
question our need or our capacity to spend whatever Is
required for our nations security.
Second, we are confronted by a shameful lag in education.
More education will* of course , assure the flowering of our
national culture* But, beyond this, we must recognize that
education today lies at the very root of a nation1* power
and well-being. Without adequate education, we cannot hope
to achieve the economic growth we desire * Our shortcomings
in providing our citizens with education according to their
needs and capacities is a blight upon our future* The problem
has grown so large that an additional Federal contribution i
clearly and urgently required*
Ho matter what the pace of our recovery from the
recession, there are major problems confronting us which
must be solved if we are to realise our full economic
potential. We must find ways first to achieve and then
to maintain production at full capacity. We must ensure
employment for our steadily growing labor force, At the
same time, we must preserve reasonable price stability*
If we balance these goals against our accomplishments,
I think it obvious that new and forward, looking governmental
action is called for*
Excessive federal spending is clearly undesirable. But
our minimum national needs must be met* Let me cite those
which merit highest priority:
«* f) •
^
Such a deficit is not a cause for alarm in times like these*
On the contrary, it is a stimulus to recovery that can, and ^
should, be readily offset by surpluses as prosperity returns*
Another deficit is in prospect for fiscal '62: one of
about three billion dollars. This, too, will be entirely
appropriate. The economy will require the stimulating effect
of a modest deficit in the coming fiscal year if it is to
move forward at an adequate pace.
The innate strength of our economy, the increase! in
government outlays which I have mentioned, and the automatic
action of the so-called built-in budgetary stabilizers, are
apparently putting an end to the current recession. Looking
backward we may well find that the turning point was reacted
early in March. But, unless we act energetically, recovery is
likely to be sluggish, just as the decline was gradual and slow*
President Kennedy has, therefore, taken a number of steps
to speed recovery:
- The annual veteransf dividend of $250,000,000,
ordinarily paid out over the course of a year* was paid
in full during March.
- Tax refunds were speeded up and we are now^MMP*
*H$$500,000,000 ahead of last year'* pace.
- Government programs have been expedited by the prompt
obligation of available funds.
- Most important, a temporary unemployment compensation
bill has been enacted.
These actions, together with Increased defense spending
that got underway last Fall and reduced revenues stemming
from the recession, have created a budgetary deficit of
about two billion dollars in the current fiscal year.
- 4 *
Current unemployment, with six point nine percent of our
labor force out of work, approaches the worst days of the
5
38 setback. A record member of our cities m:m classified
as areas of substantial unemployment*
Why, In view of the relative mildness of the recession,
do we have five and a half million people unemployed?
The answer is clear: We have &ot been producing at our
full capacity for some years* Even last year, at the point
of highest production in our history, our economy was operati
well below its potential and we still had five percent of our
labor force unemployed* We cmn and must do better in the
future. Meanwhile, until we find ways to improve the overall
performance of our economy, the extent of current unemploymen
demands prompt and forthright actioonby the Federal Governmen
- 3 We are a people who have built what is clearly the
strongest and most advanced economy on earth* But, as
recent experience demonstrates, we have not mastered the
art of keeping our economy operating at the highest sustainable
levels.
The recession from which we are now beginning to emerge
has been relatively mild, For example, in terms of constant
dollars which allow for inflation, Gross national Product
is now only two point^MM^pereent below last year's peak,
compared with a decline of four point seven percent in the
1958 recession. Personal income and industrial production
have also fallen less than in previous post-war recessions*
However, before we take too much satisfaction from these
figures, let us remember that they are relative. The
absolute figures tell a far different story:
- 2- We want an economy that can adequately provide for
our national defense and furnish our fair share of the
development needs of less fortunate peoples in Africa,
Asia and Latin America.
- We want to accomplish all of this in an atmosphere
of relative price stability*
Inevitably there will be differences among UB over the
means we should employ to achieve our objectives. But we
must not permit such differences to obscure our basic
agreement. We must recognise that unless all elements in
our society work together, we cannot mobilise the massive
effort required of our Nation in meeting the challenge of
the Sixties.
Before- considering the fiscal and monetary policies we
should follow to achieve our objectives, let us look briefl
at ourselves as we are today:
f-
S!Ii£H OP THE HONORABLE DOUGLAS DILLON,
SECRETARY OF THE TREASURY, AT THE
ANNUAL MEETING Of THE AMKRIGAK SOCIETY
OF NEWSPAPER EDITORS,*FRIDAY, APRIL 21,
1961, *SP 1:00 P. H. ms H
It is a pleasure to M
°^^
aere asss eo snap* ma&m you tm
inistration's thinking about some of the pressing economic
problems that have a bearing upon our Nation* s present and
To begin with, I think one can fairly say that there Is
a substantial concensus in our country today on national
economic goals:
- He want a steadily expanding economy, based upon a
strengthened system of free enterprise
want a rate of growth sufficient to give us an
ever-rising standard of living and to provide jobs for all.
want to assure the education of our youth and the
security of those who are growing old.
>
TREASURY DEPARTMENT
Washington
re?
April 21, 1961
FOR RELEASE: ON DELIVERY
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE
ANNUAL MEETING OF THE AMERICAN SOCIETY OF
NEWSPAPER EDITORS
STATLER-HILTON HOTEL, WASHINGTON, D.C.
FRIDAY, APRIL 21, 1961, 1:00 P.M., EST
It is a pleasure to be here and to share with you the
Administration^ thinking about some of the pressing economic problems
that have a bearing upon our Nation1s present and future well-being.
To begin with, I think one can fairly say that there Is a substantial concensus in our country today on national economic goals:
- We want a steadily expanding economy, based upon a
strengthened system of free enterprise.
- We want a rate of growth sufficient to give us an ever-rising
standard of living and to provide jobs for all.
- We want to assure the education of our youth and the health
and security of those who are growing old.
- We want an economy that can adequately provide for our national
defense and furnish our fair share of the development needs of less
fortunate peoples in Africa, Asia and Latin America.
- We want to accomplish all of this in an atmosphere of
relative price stability.
Inevitably there will be differences among us over the means
we should employ to achieve our objectives. But we must not permit
such differences to obscure our basic agreement. We must recognize
that unless all elements in our society work together, we cannot
mobilize the massive effort required of our Nation in meeting the
challenge of the Sixties.
Before considering the fiscal and monetary policies we should
follow to achieve our objectives, let us look briefly at ourselves
as we are today:
We are a people who have built what is clearly the strongest
and most advanced economy on earth. But, as recent experience
demonstrates, we have not mastered the art of keeping our economy
operating at the highest sustainable levels.
D-89
w> ^ -'
- 2 The recession from which we are now beginning to emerge has
been relatively mild. For example, in terms of constant dollars
which allow for inflation, Gross National Product is now only two
point tiTO percent below last year's peak, compared with a decline
of four point seven percent in the 1958 recession. Personal
income and industrial production have also fallen less than in
previous post-war recessions.
However, before we take too much satisfaction from these
figures, let us remember that they are relative. The absolute
figures tell a far different story: Current unemployment, with
six point nine percent of our labor force out of work, approaches
the worst days of the *58 setback. A record number of our cities
are classified as areas of substantial unemployment.
Why, in view of the relative mildness of the recession, do we
have five and a half million people unemployed?
The answer is clear: We have not been producing at our full
capacity for some years. Even last year, at the point of highest
production In our history, our economy was operating well below its
potentital and vie still had five percent of our labor force unemployed. We can and must do better in the future. Meanwhile,
until we find ways to improve the overall performance of our
economy, the extent of current unemployment demands prompt and
forthright action by the Federal Government. President Kennedy has,
therefore, taken a number of steps to speed recovery:
- The annual veterans1 dividend of $250,000,000, ordinarily
paid out over the course of a year, was paid in full during March.
- Tax refunds were speeded up and we are now $500,000,000
ahead of last year's pace.
- Government programs have been expedited by the prompt
obligation of available funds.
- Most Important, a temporary unemployment compensation bill
has been enacted.
These actions, together with Increased defense spending that
got underway last Fall and reduced revenues stemming from the
recession, have created a budgetary deficit of about two billion
dollars In the current fiscal year. Such a deficit is not a cause
for alarm in times like these. On the contrary, It js a stimulus
to recovery that can, and should, be readily offset by surpluses
as prosperity returns.
Another deficit is in prospect for fiscal !62: one of about
three billion dollars. This, too, will be entirely appropriate.
The economy will require the stimulating effect of a modest deficit
in the coming fiscal year if it Is to move forward at an adequate pace.
Qca
_ 3
-
^
-•
The innate strength of our economy, the increase in government
outlays which I have mentioned, and the automatic action of the
so-called built-in budgetary stabilizers, are apparently putting an
end to the current recession. Looking backward we may well find
that the turning point was reached early in March. But, unless we
act energetically, recovery is likely to be sluggish, just as the
decline was gradual and slow.
No matter what the pace of our recovery from the recession,
there are major problems confronting us which must be solved if we
are to realize our full economic potential. We must find ways
first to achieve and then to maintain production at full capacity.
We must ensure employment for our steadily growing labor force. At
the same time, we must preserve reasonable price stability.
If we balance these goals against our accomplishments, I think
it obvious that new and forward looking governmental action is
called for.
Excessive federal spending is clearly undesirable. But our
minimum national needs must be met. Let me cite those which merit
highest priority:
First, after careful reexamination, the President has concluded
that we must increase our defense expenditures in the coming fiscal
year by one and one-half percent, or about 650 million dollars.
Surely, no one can logically question our need or our capacity to
spend whatever is required for our Nationfs security.
Second, we are confronted by a shameful lag in education. More
education will, of course, assure the flowering of our national
culture. But, beyond this, we must recognize that education today
lies at the very root of a nation's power and well-being. Without
adequate education, we cannot hope to achieve the economic growth
we desire. Our shortcomings in providing our citizens with education
according to their needs and capacities is a blight upon our future.
The problem has grown so large that an additional Federal contribution
is clearly and urgently required.
Third, we must supply the ever-growing needs of our
municipalities: slum clearance, improved transportation, modern
sewage facilities, and increased water supply. These needs are
placing an unbearable burden upon our larger cities.
We can and we must fulfill these needs. Fortunately, If our
economy operates at full capacity, our present tax system can
yield a surplus of several billion dollars. Our problem is not,
therefore, how to raise additional revenues but to get our
economy operating at higher levels. Moreover, in setting tax
policy our most difficult task Is not obtaining more revenue
k ut strengthening and modernizing our whole tax system so as to
stimulate growth and improve equity. One of our major
objectives is thorough-going tax reform. An extensive
_. 4 -
^ i sJ
review is now under way and we expect to present concrete recommendations to the Congress next January.
In the meantime, there is one important tax reform that cannot
wait: This is legislation to spur the modernization of our plant
and equipment, it is an unpleasant fact that our plant equipment
is growing older year by year. By contrast, thanks to more
liberal investment incentives than are available under our laws,
Western Europe and Japan are modernizing at a much faster rate. We
must step up our rate of modernization if we are to maintain our
nation's competitive position. The installation of new and more
efficient equipment is of prime importance in enabling us to meet
foreign competition In the drive for export markets which are so
essential to improving our balance of payments.
Since the installation of modern equipment means that labor can
produce more, we must recognize that it may complicate the problem
of unemployment. However, modernization will also increase jobs in
the capital goods industries. Indeed, we estimate that the tax
incentive President Kennedy has recommended should lead to an
increase of from two to three billion dollars a year in expenditures
for plant and equipment. Some 250,000 new jobs would be required
to provide this equipment. In addition, at least as many more
people would find employment as an indirect result of these
expenditures. Although major benefits to economic growth will accrue
over the longer run, It is also clear that this tax incentive will
have a substantial effect In speeding our recovery from recession. •
And, as our economy speeds up, increased consumer and business
demand will expand the variety and volume of goods produced, thus
creating new jobs to replace those eliminated by increased
productivity. This is the way of future progress.
The legislation the President has requested is carefully
designed to promote Increased spending for modernization and expansion.
Its enactment Is necessary to speed full recovery and promote rapid
growth thereafter. Initially, it will result in some loss of
revenue. To compensate for this loss, he is asking that a number of
serious tax defects be corrected:
First, expense accounts — an area where abuse has virtually
become a national scandal. Tighter enforcement of the present law
is not an adequate solution, for it would put an unacceptably
heavy discretionary burden upon Government tax auditors. What is
needed is a new and stricter legislative definition of allowable
deductions. This is what we are asking.
Second, we are asking for withholding at the source of interest
and dividends. Our best estimate is that about three billion dollars
of income from Interest and dividends goes unreported every year.
This situation Is clearly unfair to all wage earners and, indeed,
to the majority of taxpayers. We are asking that It be corrected
by a workable withholding provision that, as in the case of wages,
will
collect
at the source
a substantial portion of the tax on
interest
and dividend
income.
- 5-
w i
Third, we are asking for repeal of the four percent dividend
credit. This credit was adopted in 195^ in an attempt to lighten
the double taxation of dividend Income. But, at only four percent,
it has not served its purpose. Furthermore, it gives considerably
greater benefit to those in the higher income brackets than to the
vast majority of stockholders. This favoritism In the law is
unhealthy and should be ended,. The related fifty dollar exemption
should also be dropped.
Finally, we seek an end to tax provisions that encourage
American business operations abroad through the use of tax havens.
We also want to withdraw preferential tax treatment for American
capital going into industrially advanced countries, for such
treatment discriminates against the investment of capital at home.
These changes will have a needed and favorable impact upon our
basic balance of payments deficit. We are not, however, recommending
changes in tax inducements for Investment in underdeveloped countries
which are an essential part of our overall program to help these
countries grow.
I have briefly outlined our overall fiscal and budgetary
thinking. I have also told you something of our plans for the
immediate future as regards taxation.
Now, let me take up monetary policy. This is a field where we
face an entirely new situation brought about by the recently achieved
convertibility of foreign currencies. Convertibility permits owners
of liquid funds to shift them freely from one world financial center
to another in search of higher interest rates. Therefore, the
extremely low short-term interest rates of previous recessions could
have dangerous repercussions today. Short-term interest rates much
below present levels might well touch off a renewed outflow of
dollars that could imperil our balance of payments and the soundness
of our dollar.
Nevertheless, we need low long-term rates to stimulate borrowing
for modernization, plant expansion, housing construction and the
like just as much today as in previous periods of recession.
Accordingly, the Administration is attempting to promote lower
long-term interest rates without putting downward pressure on present
short-term rates. For one thing, the Federal Reserve is now purchasing
securities of all maturities, Instead of restricting itself to shortterm Treasury bills. For another, President Kennedy has taken
direct action in the housing credit field which has helped to lower
average mortgage rates by more than a quarter of one percent since
the turn of the year.
Far more meaningful than interest rates, however, is the quantity
•^ ^,
of funds flowing into investments. Here, vre see evidence of Improvement In the mortgage credit area, where, although rates are still
on the hi^h side, availability of credit is no longer an inhibiting
factor
We also see increasing evidence of growing municipal
corporate borroxtfing.
_>
Q
_.
W
t t—
Finally, since the budgetary deficits that are presently
nvisioned are modest and bear no comparison to the deficit of 1959,
onetary policy will remain free to act in support of business
ecovery. Therefore, the substantial increases in interest rates that
haracterized the 1958-59 period are not likely to recur this time.
To sum up:
- Our policies — be they budgetary, tax, or monetary —
ihould have one overriding goal: the promotion of a healthy rate
>f economic growth within a reasonable atmosphere of economic
jtability. We must meet the needs of the day in the fields of
iefense, education, housing, highway construction, urban development,
md other essentials. Fortunately, we are in a position to meet
;hem — this year, and the next, and in the long run — without undue
strain on our economy.
- We must overhaul our tax system to provide greater fairness
md incentives for efficiency and growth, beginning with an investtient incentive this year, and following with a basic overhaul next
rear.
- We must maintain an interest rate structure conducive to the
steady flow of funds into investment.
To achieve aU these things will not be easy. But with
letermination and perserverance we should be able to attain our
;oals. In the process, we can look forward to a period of growth
md prosperity during the Sixties such as this Nation has never
mown.
0O0
April tb, l?*l
'. Agra as, 1 9 a
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and tr* otr*r **rl*# to b* d&twi April 27, 1?61, wiiiefa war* offered on April 19, w*r«
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A»li»a F y
Ji ypaiyl far
11 m m nifi
_ A .__._. ^ -'-A«ts_. ..t?,„ ^ j & j j g j r _,,
:o 4 coupon is^© of Hie $tet iejsgth am! f^r th« «^r, jm<m^ iw«#%ed, the retuya o>
th#f# bills vould provide jlelda of t*tjj|9 for tti* Si-day bilie, and 2.}6% for til
l68Htejr billi. M b e N e t tatee m billt art ^teted in Urn® ef b&i* discount w U h
the return related to th« ftce amount of tb® bille payable et a^atwi%f rat&ar % W Uie Mouot inv«st®<! m& their leimtb in actual numbar of itafa wlatad to a 3m*4ty
year. In cotitra^t, ylaMa on tartlfleataa, not®a, &od bearii era c<»aputad 1» tensf
of intaraat on tm wm?m% $®mfflM$ and relate Wm mmhm ftf iajra ra^aiiriU^ in aa
lularatt p*ymn% parted te tha actual mmtimw et d^ja jto tha parii^, with
compounding if mora than om mu\wn jpafjbad is imrolvad.
TREASURY DEPARTMENT
~ 1 " ' 1 ™ 1 " -MWilwFnr~Tf_»|jiiiiiaMi I.JJI.I.IM__I>_U
WASHINGTON, D.C.
April 2li, 1961
OR RELEASE A. M« NEl-JSPAPERS, Tuesday, April 25, 1961.
RESULTS OF TREASURY* S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
teasury bills, one series to be an additional issue of the bills dated January 26, 1961
nd the other series to be dated April 27, 1961, -which were offered on April 19, were
jpened at the Federal Reserve Banks on April 2k. Tenders were invited for $1,100,000,00
.p thereabouts, of 91-day bills and for $1*00,000,000, or thereabouts, of 182-day bills.
he details of the two series are as follows:
AHJB OF ACCEPTED
IOMPETITIVE B I D S :
High
Low
Average
91-day Treasury bills
maturing July 27« 1961
Approx. Equiv,
Price
Annual Rate
2.172#
99.U51 a/
2*200$
99.140i "
2.186$ 1/
99.14*8
182-day Treasury bills
maturing October 26, 1961
Approx. Equiv,
Price
Annual Rate
98.81*2
2.291$
98.832
2.310$
98.837
2.30Q$ 1/
a/ Excepting one tender of $750,000
73 percent of the amount of 91-day bills bid for at the low price was accepted
3l* percent of the amount of 182-day bills bid for at the low price was accepted
OTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas, City
Dallas
San Francisco
TOTALS
Applied For
31,887,000
1,513,132,000
29,131,000
26,210,000
8,650,000
22,929,000
223,31(1,000
22,182,000
13,1*76,000
31,262,000
10,502,000
11,7,887,000
$2,080,589,000
Accepted
Applied For
Accepted
I
13,U*5,000
3A63,000
$
57E85,ooo
720,012,000
858,631,000 321,921*,000
Ul.,050,000
1,825,000
7,21*8,000
20,022,000
9,762,000
22,1*39,000
8,500,000
91U, 000
1,26U,000
17,11*6,000
6,109,000
7,909,000
11*6,583,000
2lr,790,000
67,655,000
19,01*7,000
3,561,000
5,221,000
7,276,000
1,131,000
3,631,000
19,087,000
l*,7l*i*,000
10,362,000
10,502,000
2,893,000
3,593,000
10^,906,000
19^298 __000
3U,lq5,000
$1,100,576,000 b / $1,027,853,000 $U00,Hi|,000 c/
IM.IIiimi
!•_! — I I Ml
l>—«*_••
Includes $191,613,000 noncompetitive tenders accepted at the average price of 99.1*1*8
Includes $1*1*,831,000 noncompetitive tenders accepted at the average price of 98.837
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 2.23%, for the 91-day bills, and 2.36$ 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.
3-90
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 interes
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 ex
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, whethe
on original issue or on subsequent purchase, and the amount actually received eithe
upon sale or redemption at maturity during the taxable year for which the return 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 Q7C
m*titomm&**mt
decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders be
made on the printed foixas and forwarded in the special envelopes which will be
supplied by Federal Reserve Banks or Branches on application therefor.
Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorpo-
rated banks and trust companies and from responsible and recognized dealers in inve
raent 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 b
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 February 2, 1961 , ( 91 days remaining until maturity date on
August 5, 1961 ) and noncompetitive tenders for
SB
$1QQ.OQO
or less for the
im
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 respe
tive issues. Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on May 4, 1961 , in cash or
other immediately available funds or in a like face amount of Treasury bills maturing May 4, 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 arqr e_^_spfeijQ_k^ as such, and
Q77
:«a?«:««s»;pi«fi
MMWmmw#*m
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE 4_a3_tXK5fflDQC April 26, 1961
TREASURY'S WEEKLY BILL OFFERING
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,
cash and in exchange for Treasury bills maturing May 4, 1961 , in the amount
of $ 1,501,015,000 , as follows:
s*
91 -day bills (to maturity date) to be issued May 4, 1961 ,
in the amount of $ 1,100,000,000 , or thereabouts, representing an additional amount of bills dated February 2, 1961 ,
and to mature
August 5, 1961
, originally issued in the
amount of $ 500,588,000 , the additional and original bills
5_31*
to be freely interchangeable.
182 -day bills, for $ 500,000,000 , or thereabouts, to be dated
xBcJ:
fc-kihx
May 4, 1961
^5
> and to mature
November 2, 1961
g_5
The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their fa
will be payable without interest. They will be issued in bearer form only, an
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (
value).
Tenders will be received at Fed.eral Reserve Banks and Branches up to the clo
Daylight Saving
hour, one-thirty o'clock p.m., Eastern/Sk«.«fl«.KiiL time,
Monday, May 1, 1961
«
Tenders will not be received at the Treasury Department, Washington. Each ten
must be for an even multiple of $1,000, and in the case of competitive tender
price offered must be expressed on the basis of 100, with not more than three
0 7Q
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 26, 1961
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
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 May 4, 1961,
in the amount of
$1,501,013,000, as follows:
91-day bills (to maturity date) to be Issued May 4, 1961,
in the amount of $1,100,000,000, or thereabouts, representing an
additional amount of bills dated1 February 2, 1961, and to
mature August 3, 196l,
originally issued in the amount of
$500,388,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $500,000,000, or thereabouts, to be dated
May 4, 1961,
and to mature November 2, 196l.
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 ofclock p. m., Eastern Daylight
Saving time, Monday, May 1, 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 riot 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.
D-91
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
February 2, 196l, (91-days remaining until maturity date on
August 3. 196l)
and noncompetitive tenders for $100,000
or less for the 182-day bills without stated price from any one
bidder v/ill be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders In accordance with the bids must be
made or completed at the Federal, Reserve Bank on May 4, 1961,
in cash or other immediately available funds-or in a like face
amount of Treasury bills maturing May 4, 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.
IMMEDIATE RELEASE
TREASURY DECISION ON GARLIC
UNDER ANTIDUMPING ACT
The (Treasury Department has determined that garlic
from Mexico is not being, nor likely to be, sold in the
United States at less than fair value within the meaning
of the Antidumping Act. Notice of the finding will be
published in the Federal Register.
The dollar value of imports received during i960
was approximately $1,310,000.
TREASURY DEPARTMENT
WASHINGTON, D.C
IMMEDIATE RELEASE
TREASURY DECISION ON PORTLAND CEMENT
UNDER ANTIDUMPING ACT
The Treasury Department has determined that portland cement,
other than white, nonstaining portland cement, from Tunisia is
not being, nor likely to be, sold in the United States at less
than fair value within the meaning of the Antidumping Act. Although it was found that there had been some sales at less than
home market price prior to the date of the complaint, there have
been no recent importations and firm assurance has been given
that there will be no further sales at less than home market
price. Notice of the determination will be published in the
Federal Register,
The dollar value of imports of the involved cement from
Tunisia received during the period January through August i960
was approximately $200,000. There have been no importations
since that time.
TREASURY DEPARTMENT
-
^ ^ ^ ^ * ^ W W B _ _ _ _ _ _ _ I _ ^ _ _ _ M _ _ I _ _ _ _ _ _ _ _ B _ _ _ _ ~ ~ W W M M W ^
WASHINGTON,
APR 2 6 1961
IMMEDIATE RELEASE
TREASURY DECISION ON RAYON STAPLE FIBER
UNDER ANTIDUMPING ACT
The Treasury Department has determined that rayon staple
fiber from Italy is not being, nor likely to be, sold in the
United States at less than fair value within the meaning of
the Antidumping Act. Notice of the finding will be published
in the Federal Register.
The dollar value of imports of rayon staple fiber from
Italy received during i960 was approximately $1,980,000.
TREASURY DEPARTMENT
•"•• r> o
-* *^ _
_H.UK__W1. .._ai_.MJ._l
WASHINGTON, D.C.
April 27, 1961
FOR IMMEDIATE RELEASE
TREASURY WILL BORROW $7-3/4 BILLION IN CASH
TO PAY OFF SECURITIES MATURING MAY 15
The Treasury will borrow $7-3/4 billion, or thereabouts, on May 15, 1961,
for the purpose of paying off in cash securities maturing May 15, 1961.
The maturing securities to be redeemed in cash are:
$3,674 million of 4-3/8$ certificates of indebtedness of Series
B-1961, dated May 15, 1960, maturing May 15, 1961, and
$4,078 million of 3-5/8$ Treasury Notes of Series B-1961, dated
December 1, 1958, maturing May 15, 1961.
The $7-3/4 billion of new cash to be borrowed will be obtained from the
issue of:
$5,250 million, or thereabouts, of 3$ Treasury Certificates of
Indebtedness, to be dated May 15, 1961, and to mature May 15,
1962, and
$2,500 million, or thereabouts, of 3-1/4$ Treasury Notes, to be
dated May 15, 1961, and to mature May 15, 1963.
The new certificates of indebtedness and Treasury notes will be issued at
par, and subscriptions will be received subject to allotment. Payment for the
new certificates and notes may be made in cash, in 4-3/8$ Certificates of Indebtedness of Series B-1961, or in 3-5/8$ Treasury Notes of Series B-1961,
maturing May 15, 1961, which will be accepted at par, in payment or in exchange,
in whole or in part, for the new Treasury certificates of indebtedness and
Treasury notes subscribed for, to the extent such subscriptions are allotted by
the Treasury.
The subscription books for the new issues will be open only on Monday,
May 1.
Any subscriptions for the new 3$ certificates of indebtedness or 3-1/4$
Treasury notes with the required deposits addressed to a Federal Reserve Bank
or Branch, or to the Treasurer of the United States, and placed in the mall
before midnight May 1, 1961, will be considered timely.
The new issues may not be paid for by credit in Treasury Tax and Loan
accounts.
D-92
mm
£
«•
Vu«- *v_.' S^«
Other details concerning the new certificates of indebtedness and Treasury
notes are as follows:
Subscriptions from commercial banks, for their own account, will be restricted in the case of each new issue to an amount not exceeding 50$ of the
combined capital, surplus, and undivided profits of the subscribing bank.
Subscriptions from commercial and other banks for their own account,
Federally-insured savings and loan associations, States, political subdivisions
or instrumentalities thereof, public pension and retirement and other public
funds, international organizations in which the United States holds membership,
foreign central banks and foreign States, dealers who make primary markets in
Government securities and report daily to the Federal Reserve Bank of New York
their positions with respect to Government securities and borrowings thereon,
Government Investment Accounts, and the Federal Reserve Banks will be received
without deposit.
Subscriptions from all others must be accompanied by payment of 2$ (in
cash, or Treasury Certificates of Indebtedness of Series B-1961, or Treasury
Notes of Series B-1961, maturing May 15, 1961, at par) of the amount of new
certificates of indebtedness or Treasury notes applied for which will not be
subject to withdrawal until after allotment.
The Secretary of the Treasury reserves the right to reject or reduce any
subscription, to allot less than the amount of 3$ certificates of indebtedness
or 3-1/4$ Treasury notes applied for, and to make different percentage allotments to various classes of subscribers; and any action he may take in these
respects shall be final. Subject to these reservations, all subscriptions from
States, political subdivisions or instrumentalities thereof, public pension and
retirement and other public funds, international organizations in which the
United States holds membership, foreign central banks and foreign States, Government Investment Accounts, and the Federal Reserve Banks, will be allotted in
full. The bases of the allotment of all other subscriptions will be publicly
announced, and allotment notices will be sent out promptly upon allotment.
All subscribers 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 of the new 3$ certificates of indebtedness or 3-l/4$ Treasury notes until
after midnight May 1, 1961Commercial banks in submitting subscriptions will be required to certify
that they have no beneficial interest in any of the subscriptions they enter
for the account of their customers, and that their customers have no beneficial
interest in the banks' subscriptions for their own account.
- o -
TREASURY DEPARTMENT
WASHINGTON, D.C.
April 27, 1961
FOR IMMEDIATE RELEASE
TREASURY ADVANCE REFUNDING CLEARED OF
TECHNICAL OBSTACLES BY ATTORNEY G E N E R A L & ^ ^ / H ^ - ~
Treasury Secretary Douglas Dillon today ann6unced that the
Treasury has received an opinion from the Attorney General which
confirms its authority to engage in advance retfundings of
Government bonds where the new Issue bears a^-J^s^^st rate not
exceeding 4-1/4 per cent, even though the effective rate of interest
under certain accounting procedures technically would exceed that
figure.
,
The aettpwi rate on Government bonds is limited by law to not mor
than 4-1/4 per cent. The legal question presented was whether sellin
or exchanging bonds at a discount which produces an effective rate
above 4-1/4 per cent violates a prohibition of the Congress.
It is not contemplated that bonds would be sold or exchanged
in the near future under circumstances requiring application of
this ruling. However, in view of recent Congressional and public
interest, Secretary Dillon asked Attorney General Robert F. Kennedy
on April 7 for the opinion so that if such an issue should ever
become desirable the legal question would have been resolved.
Attorney General Robert F. Kennedy on April 25 delivered his
opinion that the 4-1/4 per cent "ceiling" applied only to the
coupon rate placed on bonds, and that issuance of bonds below par
as authorized by law does not "circumvent" any Congressional
prohibition.
"The power to do so plainly exists," the Attorney General
concluded, "and I cannot see anything inappropriate in exercising
It if you believe that the circumstances require such action. I
therefore answer your question in the affirmative."
D-93
0O0
?»Ri".r,...'_i.*
April 37, 1 W 1
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^
**
y
y
April 27, 1961
FOR IMMEDIATE RELEASE
TREASURY ADVANCE REFUNDING CLEARED OF
TECHNICAL OBSTACLES BY ATTORNEY GENERAL
Treasury Secretary Douglas Dillon today announced that the
Treasury has received an opinion from the Attorney General which
confirms its authority to engage in advance refundings of
Government bonds where the new issue bears a coupon rate not
exceeding 4-1/4 per cent, even though the effective rate of
interest under certain accounting procedures technically would
exceed that figure.
The interest rate on Government bonds is limited by law to not
more than 4-1/4 per cent. The legal question presented was whether
selling or exchanging bonds at a discount which produces an
effective rate above 4-1/4 per cent violates a prohibition of the
Congress.
It is not contemplated that bonds would be sold or exchanged
in the near future under circumstances requiring application of
this ruling. However, in view of recent Congressional and public
interest, Secretary Dillon asked Attorney General Robert F. Kennedy
on April 7 for the opinion so that if such an issue should ever
become desirable the legal question would have been resolved.
Attorney General Robert F. Kennedy on April 25 delivered his
opinion that the 4-1/4 per cent "ceiling" applied only to the
coupon rate placed on bonds, and that issuance of bonds below par
as authorized by law does not "circumvent" any Congressional
prohibition.
"The power to do so plainly exists," the Attorney General
concluded, "and I cannot see anything inappropriate in exercising
it if you believe that the circumstances require such-action. I
therefore answer your question in the affirmative."
D-93
0O0
A p
•.
W CJ i
THE SECRETARY OF THE TREASURY
WASHINGTON
April 7, 1961
Dear Mr. Attorney General:
I would greatly appreciate your opinion as to whether
the Secretary of the Treasury has authority under Sections 1
and 20 of the Second Liberty Bond Act, as amended, to issue
bonds bearing a coupon rate not in excess of 4-1/4 per cent
at a discount which would raise the investment yield or the
cost to the Treasury of the bonds above 4-1/4 per cent.
While currently prevailing low interest rates may make
the question appear academic, and while no specific borrowing operation to which this opinion could apply is now
contemplated, I believe your opinion would be timely in two
respects. In the first place, considerable interest in this
problem has been and is being expressed by both the Congress
and the press. Additionally, to request such an opinion
with respect to a specific proposal to issue bonds for cash,
exchange, or an advance refunding would inevitably promote
speculation and have a generally undesirable effect on the
market. Thus it would appear appropriate to obtain your
opinion now so that if at some future time the Treasury
Department should propose to issue securities at a discount
which would raise the investment yield or cost to the
Treasury above 4-1/4 per cent, the question would have been
resolved and the integrity of Government securities maintained
beyond question.
Sincerely yours,
/s/
Douglas Dillon
Douglas Dillon
Honorable Robert F. Kennedy
Attorney General of the
United States
Washington 25, Dw C #
APR 2 5 1961
The Honorable
The Secretary of the Treasury
My dear Mr. Secretary:
This is in reply to your request for my opinion as to
whether you have the authority under sections 1 and 20 of
the Second Liberty Bond Act to issue bonds for cash, exchange,
1/
or on advance refunding
where such bonds bear a coupon rate
not in excess of 4-1/4 per cent but are Issued at a discount
which would raise the effective rate or cost to the Treasury
of the bonds above the rate of 4-1/4 per cent* For the
reasons set forth hereinafter in detail I conclude that you
possess such authority*
Section 1 of the Second Liberty Bond Act authorizes the
Secretary of the Treasury, with the approval of the President,
to borrow on the credit of the United States and to issue
1/ Section 1 of the Second Liberty Bond Act of September 24,
1917, 40 Stat, 288, as amended, 31 U.S.C. 752, authorizes the
Secretary of the Treasury, with the approval of the President,
to borrow on the credit of the United States for a number of
purposes including SBthe purchase, redemption, or refunding,
at or before maturity, of any outstanding bonds, notes, certificates of indebtedness, or Treasury bills of the United
States * * *. w
nrO
therefor bonds of the United States which shall be subject
to a "rate or rates of interest, not exceeding 4-1/4 per
centum per annum" and shall "be offered at not less than
par."
Section 20 of the Second Liberty Bond Act, as amended
by section 3 of the Public Debt Act of 1942, 56 Stat. 189,
2/
31 U.S.C. 754b,
provides that the bonds authorized by
section 1 of the act:
BIJ
may be issued on an interest-bearing basis, on a
discount basis, or on a combination interestbearing and discount basis, at such price or
prices and with interest computed in such manner
and payable at such time or times as the Secretary
of the.Treasury may prescribe; and any such obligations may be offered for sale on a competitive
or other basis under such regulations and upon
such terms and conditions as the Secretary of the
Treasury may prescribe; and his decision with
respect to any such issue shall be final.tB
On May 1, 1958, my predecessor concluded that the 1942
amendment of section 20 had repealed the earlier enacted requirement, set forth in section 1 that bonds issued thereunder
shall c*be offered at not less than par" (41 Op. A.G. No. 62).
He based this opinion on the conclusions that the two sections
are irreconcilable and that the legislative history of the
1942 amendment of section 20 disclosed a congressional purpose
2/ Section 20 was added to the Second Liberty Bond Act by
Section 14(a)(4) of the Gold Resetve Act of 1934, 48 Stat.
343*
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toto
give the Secretary of the Treasury greater flexibility
in determining the terms upon which Treasury bonds, bills,
1/
notes, and certificates of indebtedness may be issued*"
That opinion, however, did not purport to consider
whether the Secretary of the Treasury is authorized to issue
bonds, bearing a stated coupon rate of no more than 4-1/4
per centum, for cash, exchange, or on advance refunding, if,
as the result of a discount at which the bonds are issued,
or for some related reason, their effective rate, investment
yield, or cost to the Treasury should exceed the statutory
4/
rate of 4-1/4 per centum per annum.
I base my conclusion
that you have this power on the following considerations:
First, when Congress uses the term "interest" in connection
with bonds without further explanation, it refers to the
coupon or stated rate, the usual meaning of that term, and
not to the accountants' concept of effective rate; second,
when a statute limits only the coupon rate of a security
issue and permits it to be offered at less than par, it
o/ ^—Rept. 1876, 77th Cong., 2d Sess., p. 4. See also S. Rept.
1173* 77th*Cong., 2d Sess., pp. 1, 2; Public Debt of 1942,
Hearings before the Committee on Finance, U.S* Senate, 77th
Cong. 2d Sess. on H.R. 6691, p. 3; 88 Cong. Rec. 2184.
Lf in'the interest of brevity I shall use only the term "ef?" tive rate™ when referring to the three related concepts
f "effective rate," "investment yield," and "cost to the
SI
Treasury.
.-• Q
authorizes sales at an effective rate in excess of the maximum permissible coupon rate; and third, when Congress seeks
to limit the effective rate of securities which may be sold
at a discount, it does so expressly.
I.
As originally enacted, section 1 of the Second Liberty
Bond Act provided that the interest rate of the bonds should
not exceed 4-1/4 per cent per annum, and that they should not
be issued at less than par. In view of the latter prohibition, the effective rate could not exceed the coupon rate,
and it was therefore unnecessary to determine whether the
4-1/4 interest rate referred to the coupon rate or to the
effective rate.
The 1942 amendment of the Second Liberty Bond Act, while
leaving the 4-1/4 per centum limitation on "interest" untouched, permits bonds to be issued on a discount basis, or
pn a combination interest-bearing and discount basis. In
view of this amendment, it becomes material to ascertain
whether the words
CB
rate or rates of interest" in section 1
refer to the coupon rate or to the effective rate. The
pertinent judicial decisions indicate that the first alternaVD
tive is the correct one; hence, that a limitation on "interest
- 4 _.
C-O
has no direct bearing on the effective rate.
In 01d
Colony R. Co. .7. Commissioner, 284 U.S. 552 (1932),
the Supreme Court was confronted with a situation closely
related to the one at hand. A corporation which had sold
its bonds at a premium sought to deduct the entire interest
payments on those bonds from its gross income for income tax
purposes. The Government claimed that this was not permissible because these payments included in part the repayment
of the premium, which constituted a loan and consequently
had to be amortized over the life of the bond. Hence, the
"interest" payments constituted in part "genuine interest"
which was deductible, and in part payments on a loan which
could not be deducted. In a nutshell, the Government's
position was that where bonds were sold at a premium, the
effective rate of interest was lower than the coupon rate,
and that the excess of the coupon over the effective rate
did not constitute deductible interest but a repayment on
•
• *
capital (284 U.S. 552, 559).
5/
The Supreme Court held
that when Congress uses the word "interest" without further
5/ See also Brief for the United States in No. 349, Oct. T.
1931, PP. 6-7, 10-14, 50-52. Significantly, the brief and
the accounting authorities quoted in it stressed that these
considerations applied conversely where bonds had been sold
at a discount.
amplification it refers to the normal meaning of the word,
_L_L_^ the stated or coupon rate, and not to the accountants1
concept of the effective rate. The Court said (284 U.S. 560
561):
"* * * the usual import of the term [interest] is
the amount which one has contracted to pay for
the use of borrowed money. He who pays and he
who receives payment of the stipulated amount conceives that the whole is interest. In the ordinary
affairs of life no one stops for refined analysis
of the nature of a premium, or considers that the
periodic payment universally called 'interest1 is
in part something wholly distinct—that is, a return of borrowed capital. It has remained for
the theory of accounting to point out this refinement. We cannot believe that Congress used the
word having in mind any concept other than the
usual, ordinary and everyday meaning of the term,
or that it was acquainted with the accountants'
phrase 'effective rate' of interest and intended
that as the measure of the permitted deduction."
The holding in Old Colony that Congress and courts use and
interpret statutory language according to its usual meaning
6/
and not on the basis of accounting theories
does not con7/
stitute an ^exception to the general course of decisions.
6/ The holding in Old Colony therefore applies with equal force
to an advance refunding of bonds at an increased interest rate
which according to some accountants constitutes the issue of
the bonds at a discount.
7/ See, e.g., Woolford Realty Co. v. Rose, 286 U.S. 319, 326327 (1932); Crane v. Commissioner, 331 U.S. 1, 3-7.
This, indeed, has been a source of complaint on the part
of accountants, see, e.g.> May, Accounting and the Accountant
in the Administration of Income Taxation, 47 Col. L.R. 377;
4 Martens, The Law of Federal Income Taxation (1960 Revision),
section 23.162.
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v^ w -*
The State courts also hold that the term "interest" without
explanation normally refers to the coupon rather than the
effective rate.
II.
The limitation on the interest rate set forth in section
1 therefore refers exclusively to the coupon rate of the bonds.
The original prohibition on the offering of those bonds below
par, however, constituted a bar on their sale at an effective
rate in excess of the coupon rate. Indeed, it has been recognized by students of public finance that one of the functions
of a statutory prohibition of the sale of securities below
par is to prevent their sale at an effective rate in excess
of the coupon rate. Thus it was stated by Dr. Love in his
treatise on Federal Financing, at p. 210:
"We are accordingly justified in thinking that the
ever-present restriction against sale below par is
in reality a logical team-mate of the restriction
on the nominal rate of interest, and that it was
only-by combining the two that the public's wishes
in respect to limiting the net yield on securities
were carried out."
It follows that prior to 1942, bonds authorized by section 1 of the Second Liberty Bond Act could not be issued
8/ Golden Gate Bridge etc. District v. Filmer, 217 Cal. 754, 21
P. (2d) 112 (1933); Stanley v. Mayor etc. of City of Baltimore,
146 Md. 277, 301-302, 126 Atl. 151, 160 (1924); Rowland v.
gmio^County, 108 Kan. 440, 195 Pac. 863 (1921); Kiernan v.
cAt£ of Portland, 61 Or. 398, 122 Pac. 764 (1912).
- 7 -
an effective rate in excess of 4-1/4 per cent because
the
atute barred the sale of those securities below par. When
the Public Debt Act of 1942 repealed that prohibition and
expressly authorized the sale of those bonds at a discount,
the basis of the restriction on the effective rate of in-
H
terest disappeared.
III.
In view of the fact that the limitation on the effective
rate was tied inextricably to the ban on sales below par, it
would appear inappropriate to view the 1942 amendment of section 20 as being designed merely to permit greater flexibil10/
ity in financing
and therefore to conclude that Congress
had no intention to modify the then existing limitation on
the effective rate. As already explained, once express
9/ The decisions of the State courts agree that where a statute permits the sale of securities at a discount, the investment
yield may exceed the statutory coupon rate; cf. the authorities
cited supra, fn. 8, and Jones, Bonds and Bond Securities (4th
ed., 1935), section 369.
Where a statute establishes a limit on the coupon rate
and does not expressly authorize the sale of the security below par, the courts are split on the question whether the sale
at discount is prohibited because it would result in an evasion
of the statutory coupon rate; see, e.g., Ohio ex rel. Laskey v.
Board of Education, 35 Ohio 519, 524; 43 American Jurisprudence,
Public Securities and Obligations, section 135, 91 A.L.R. 7,
12-13. These considerations, however, are inapplicable where,
as here, the sale at a discount has been expressly permitted.
10/ Cf. supra, fn. 3.
OQ n
V> \_* >^
permission had been given to sell the bonds issued pursuant
to section 1 at a discount, there remained no legal basis
for a limitation on the effective rate. Moreover, the history of the Second Liberty Bond Act and of its amendments
reveals sophisticated awareness on the part of Congress
that, if securities may be sold below par, any limitation
on the effective rate must be express.
Section 6 of the original Second Liberty Bond Act (40
Stat*. 291) authorized the issue of war savings certificates
"on which interest to maturity may be discounted in advance."
There was no limitation on the interest rate of these certificates; thus, it was not necessary to distinguish between
the coupon and effective rates.
Section 14 of the Gold Reserve Act of 1934 (48 Stat.
343) added to the Second Liberty Bond Act a section 20, the
predecessor to the present section 20, which authorized the
. Secretary of the Treasury to issue obligations having a
maturity of less than one year
"on a discount basis and payable at maturity
without interest."
Again, there was no limitation on the interest these obligations could bear.
_ 9 m.
QQ7
The problem created by the difference between coupon
rate and effective rate of securities issued below par was
first raised and dealt with in section 6 of the act of
February 4, 1935, 49 Stat. 21. That section added to the
Second Liberty Bond Act a section 22, 31 U.S.C. 757c, which
11/
authorized the issuing of United States Savings Bonds. ~
These bonds were to be issued
"on a discount basis to mature not less than ten
nor more than twenty years * * *. Provided That
the issue price of the Savings Bonds and the terms
upon which they may be redeemed prior to maturity
shall be such as to afford an investment yield not
in excess of three per centum per annum, compounded
semiannually." (Emphasis added.)
Section. 3 of the Public Debt Act of 1941 (55 Stat. 7)
amended and broadened section 22 of the Second Liberty Bond
Act. It provided in pertinent part:
E»<
•Savings bonds and savings certificates may
be issued on an interest-bearing basis, on a discount basis, or on a combination interest-bearing
and discount basis * * * e Such bonds and certificates may be sold at such price or prices, and redeemed before maturity upon such terms and conditions
as the Secretary of the Treasury may prescribe:
Provided, That the interest rate on, and the issue
price of, savings bonds and savings certificates
and the terms upon which they may be redeemed shall
be such as to afford an investment yield not in
excess of three per centum per annum, compounded
semiannually." (Emphasis added.)
11/ On the legal and financial history of United States Savings
Bonds, see H. Rept. 1148, 86th Cong., 1st Sess., pp. 2-7;
S. Rept. 909, 86th Cong., 1st Sess., pp. 2-7.
- 10 -
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In the following year the same Congress, which amended section
with its express reference to the investment yield, amended
section 20 so as to permit the sale of bonds below par. It is
significant that when modifying section 20, Congress did not
start out from the original version of that section contained
in section 14 of the Gold Reserve Act of 1934, but that it
followed almost verbatim the language of the 1941 amendment
of section 22, with the significant omission of the proviso
limiting the investment yield of securities issued at a dis12/
count.
The act of April 20, 1957, P.L. 85-17, 71 Stat. 15,
amended the proviso in section 22 to read:
"Provided, That the interest rate on, and the issue
price of, savings bonds and savings certificates
and the terms upon which they may be redeemed shall
be such as to afford an investment yield not in excess of 3.26 per centum per annum, compounded semiannually." (Emphasis added.)
Finally, section 101 of the act of September 22, 1959,
P.L. 86-346*, 73 Stat. 621, added a section 25 to the Second
Liberty Bond Act (31 U.S.C. 757c-l) which is indicative of
12/ The same 77th Congress again showed its awareness of problems resulting from securities sold at a premium or a discount
by enacting section 126 of the Revenue Act of 1942, 56 Stat.
822 which added a section 125 to the Internal Revenue Act*of
1939 (now I.R.C. 1954, section 171). This section permits a
bondholder who purchased a bond at a premium to treat part of
the bond "interest" as amortization of the premium. Cf. the
discussion of the Old Colony case, supra.
- 11 -
O ^ >")
e
full congressional awareness of the difference"between
interest rate and investment yield:
Section 25. In the case of any offering of
United States savings bonds issued or to be issued
under section 22 of this Act, the maximum limits
° n J h e interest rate or the investment yield or
both may be exceeded upon a finding by the President
with respect to such offering that the national
interest requires that such maximum limits be exceeded: Provided, however. That in no event may
the interest rate or the investment yield exceed
4-1/4 per centum per annum." (Emphasis added.)
The various sections of the Second Liberty Bond Act are
in pari materia. Sections 22 and 25 disclose the congressiona
awareness, at least since 1935, that when used in that statute
the term "interest" refers only to the coupon rate and not to
the effective rate. Consequently, I conclude that when Congress permitted the sale at a discount of the bonds referred
to in section 1 for cash, exchange, or advance refunding,
without placing a limitation on their investment yield, it
fully realized that such bonds could be sold or exchanged
below par at an effective rate, investment yield, or cost
to the Treasury in excess of the statutory coupon rate.
My interpretation of the legal effect of the 1942 amendment of section 20 is not novel. Your predecessor testified
before the Committee on Ways and Means of the House of Representatives to the effect that
- 12 -
r
4
• '
S w CJ
since March 1942 the Treasury has had the right
to offer securities at a discount. It is permissible under present statutory authority, therefore, for the Treasury to issue a bond with a
4-1/4-percent coupon rate at a price below par
to yield any rate of interest to the investor
above 4-1/4 percent which may be required by
market conditions." 13/
Secretary Anderson, however, did not wish to exercise
that authority without specific congressional leave because
he did not consider it appropriate "to circumvent the 4-1/4
14/
percent ceiling in this way."
Considering that the
4-1/4 per cent ceiling applies—as recognized by Secretary
Anderson himself—only to the coupon rate, the issue of
bonds below par, as authorized by section 20, and bearing a
coupon rate of 4-1/4 per cent, as authorized by section 1,
does not ^circumvent" any congressional prohibition. The
15/
power to do so plainly exists,
and I cannot see anything
13/ Public Debt Ceiling and Interest Rate Ceiling on Bonds,
Hearings before the Committee on Ways and Means, House of
Representatives, 86th Cong., 1st Sess., p. 18; see also H.
Rept. 1297, 86th Cong., 2d Sess., pp. 3, 13.
14/ Supra, -fn. 13.
15/ I cannot see any significance in the failure of Congress to
enact H.R. 10590, 86th Cong., 2d Sess., favorably reported by
the House Ways and Means Committee in H. Rept. 1297, 86th Cong.,
2d Sess., which conferred on the Secretary of the Treasury the
authority to exceed the effective rate of 4-1/4 per centum in
certain circumstances. In view of Secretary Anderson's statements, Congress may have considered this legislation redundant.
In any event a statutory power remains in effect until it is
repealed, limited, or modified. Its existence is not affected
by the failure to enact such repealing, limiting, or modifying legislation.
- 13 -
inappropriate in exercising it if you believe that the
circumstances require such action. I therefore answer
your question in the affirmative.
Sincerely,
Attorney General
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Treas.
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10
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v.124
Treas.
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U.S. Treasury Dept.
Press Releases
U.S. Treasury Dept,
AUTHOR
Press Releases
TITLE
v.124
DATE
LOANED
BORROWER'S NAME
PHONE
NUMBER
U.S. TREASURY LIBRARY
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@FedFRASER