The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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A)'3PIJ
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J.,d \g ._~~,~~~t:~~___ J:?~p:L_
~,...~S 5
~,
JE'Q ,
C'~
LIBRARY
ROOM
50~O
JUN 161972
TREASURY DEPARTMENT
8109
LIBRARY
RnOM 5030
JUN 161972
TREASURY DEPARTMENT
Uni ted States Savings Bonds Is~;ued
and
Redeerr.ed Through
M8¥
31, 1963
(Dollar amounts in millions - rOUT ded and Vlill Lot necessarily add to totals
./I.mcunt
Amount
Amount
% Outs tar.
ISSUEd 11 Redeemed 11 Outstanding 2.J of Amt.lr.
Wut...TU?cED
Series A-1935 - D-1941 .•.•••••••
Series F & G-1941 - 1950 ••••.•••
UNrMTURED
Series
E:
$ 5,003
28,512
1944 .••••••••••••••••••••
1945 ....•..••••.•••••••••
1946 •.••..••.••••••••••••
1947 •..••.•••••••••••.•••
1948" .•..•••••••••••••••••
1949
1950
1951
1952
1953
1954
1955
1956 • ••••••••••••••••••••
1957
1958
,.
1959
1960
1961
1962
1963
Unclassified •••••••••••••••••.
Total Series E ••••••••••••••••
Series H (1952 - 1963L¥' ••••••••
· ....................
·................... .
· ................... .
··...................
.
................... .
··...................
.
................... .
·................... .
·....... ........... .
·................... .
·................... .
·................... .
·................... .
·. ...................
.2f!
.S;
r-=====~====~========~===
1,533
291
15.96
6,795
1,262
lS.~
10,915
2,056
lS.8.~
12,594
2,500
16.5c
9,649
2,171
18.3"
4,109
1,200
22.&
3,685
1,314
26.2~
3,686
1,463
28.4]
3,535
1,529
)0.15
4,414
2,992
1~421
32.1j
3,822
2,573
1,250
32.71
3,999
2,620
1,380
34.51
4,552
2,759
1,793
39.3?
4,580
2,692
1,888
41.22
42.08
4,746
2,749
1,997
4,560
2,647
1,913
41.95
44.]£
4,281
2,393
1,888
4,135
2,149
1,986
48.03
3,863
1,949
1,914
49.5~
3,840
1,769
2,071
53.9;
6o.2C
3,847
1,531
2,316
3,697
1,127
2,571
69.S!!
93.61
954
61
893
537
513
24
~--------~----~--+-------~---+------126,115
87,026
39,089
30.95
1--;;"',0-9-2--+--1":;',-92-8-+---7":;',-16-4---+--7-8-.75
9
1,823
8,057
12,972
15,094
11,820
5,309
4,999
5,149
5,064
Total Series E and H ••••••••••
135,207
Series F and G (1951 - 1952).....
1,007
Series J and K (1952 Total Series F, G, J
All Series
88,954
745!J
46,253
34.21
261
2,,92
r---------r---------+------------+------3,696
1,980
1,716
46.4:
1957) ••••
r-------~----~--~~--~~----+-----and K ....
4,703
2,725
1,978
42.06
Total matured •••.••.
Total unmatured •••••
Grand Total •••.•••••
11 Includes accrued discount.
2/ Current redemption value.
y
14
151
J.I
1941 .•....••••••...•.•••.
1942 ....••.•••.••••••.•••
1943 .••.••••..••.••.•.•••
3.1
$
$ 4,989
28,361
33,515
139,910
173,425
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.
Includes matured bonds which have not been
presented £or redemption.
33,351
91,.679
125,030
165
48,231
48;395
BUREAU OF THE PUBLIC DEE'
Uni ted States Savings Bonds
(Dollar amounts in millions -
I,-~~ued
rO;lt
and Hedeerred Through l,ray 31, 1963
cit:~ ,':l1cl
\',ill r:ot necessarily add to totals)
---------------------------r----------~------_.------------~~---------
P.mClu.t
Issu(d.LI
AmoWlt
Hedeemed
11
Amount
% Outstanding
Outstanding 2J of Amt.Issued
TunED
eries A-1935 - D-1941 ......... .
eries F & G-1941 - 1950 .....•..
~TmlliD
eries E:
J.!
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
·.................................
......................... .
·............................... .
$ 5,003
28,512
$ 4,989
28,361
$
14
lSI
.28%
.53
r-=======~=========i==========~===========
1,533
291
15.96
6,795
1,262
15.66
10,915
2,056
15.85
....................................
16.56
12,594
2,500
9,649
2,171
........ "
18.37
4,109
1,200
22.60
26.29
3,685
1,314
28.41
5,~19
3,686
1,463
5,064
3,535
1,529
30.19
4,414
2,992
1,421
32.19
3,822
2,573
1~250
32.71
3,999
2,620
1,380
,. ... .
34.51
..................... .
4,552
2,759
1,793
39.39
4,500
2,692
1,888
41.22
42.08
4,746
2,749
1,991
·
"
4,560
2,647
1,913
41.95
4,281
2,393
1,888
44.10
1,986
4,135
2,149
48.03
3,863
1,949
1,914
49.55
3,840
1,769
2,071
53.93
60.20
3,847
1,531
2,316
·
"
3,697
1,127
2,571
69.54
954
61
893
93.61
~classified •••••••••••••••••• ~~__~53_7~~__~5~1~3__~_______
2~4__~______-_ ____
Total Series E .•••.••..••••... ~_1_2_6~,_11_5__~__8_7~,0_2_6__~____
39~,~0_8_9--~----~3_0_.9_9__~
~ries H (1952 - 1963).~........
9,092
1,928
7,164
78.79
.................... .
·................... .
·................... .
· ................... .
· ...................... .
·................
·
.......... ........ .
·.................... .
·..................... .
·...................... .
·...................... .
............... .....
•
•••••••••••••••••••
0
to!
••••••••••••••••••••
• . . . . . . . . . . . . . . . . . . e .. .
•
••••••••
0
~
..........
.
~
•
....................
0
••
•
••••••••••
.,
••
III
••••••
Total Series E and H ......... .
;ries F and G (1951 - 1952).....
~ries J and K
(1952 - 1957) ....
Total Series F, G, J and K ....
1 Series
1,823
8,057
12,972
15,094
11,820
5,309
4,999
iTotal matured •••••..
Total unmatured .•••.
Grand Total .••••••••
I----------~---~----+-----~-----+------------
135,207
88,954
46,253
34.21
1,007
745
261
25.92
3,696
1,980
1,716
46.43
4,70)
2,725
1,978
42.06
33,515
139,910
173}425
33,351
91,679
125,030
165
48,231
tl-8,395
3L~.47
y'
~---------~--------+-----------~----------~--------~----------+------------+------------
r-=====~======~======~========
Includes accrued discount.
Current redemption value.
At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.
Includes matured bonds which have not been
presented for redemption.
.h9
27.91
BUREA U OF THE PUBLIC DEBT
POR BLEASE A. t!.
NEWSP~RS
fae!d!r, .fUM 4, 196).
iESUL1'S OF TREASURI t S \.J!EItLI BILL 0PrUIJIQ
rhe frauuI7 DepartMDt 8DDO'...-1 l&Bt ..,.,.1111 that, tile MadeN IfX' two ......
~ billa, CIII8 . .rie. to be a4d1t.1onal 18. . of i.be bUla date. March 1, U6J.
\be otJ..\0 be elated June 6, 196), wb10b . f t ottvad 011 " " " 29, ..........
at, the .......:1 ~ Badts on June ,. t.Ddan were 1rn1.tecl tOIl" $1,)00,000,000, •
tbeNabwta. of 91-da7 bill. and for $800,000,000, or t.benabouta . , 182-c1q bIlII.
!be dnaSla of t.he two ser1ea are aa toUowe.
....s.e.
BAlDI or .lCCEPTID
C(J(PITITIVE Blnsa
91-dq
-"v1r!g
T'Naav.I7
Ml,.
BeejF!!!.?,.3
ppc'GX.
99.238
99.2))
99.2)$
:9' •
A....al late
Price
!I
).01S'
).O~
3.028%
I
•
:
!I
I
I
a/
fa
ExoIp't-ing two tenders to'ta.l1ng $l,4S0,OOOJ ~ Excepting one tender
peroet ot the amount ot 91-day bllls bid for at t:. 1CJV price was
12 ptl'Oel'lt or the amount ot 182-daJ' bUla bid tor at the low price -
ot $l6O,OO.
....tid
... JDtted
t'OfAL DNlBRS 'PPLIID lOR A.ID ACCEPreD It PKlERAL RESERVI DISftICfSI
DS.8t.ri.ot
AppUecl lar
IoetaD
lev tGl1c
phil adelphia
$
C1e"teland.
~
'\lan*a
Chicago
st. Lou1a
JC1.DDHpolJ.a
la... Clt7
Dell..
San Frano1aoo
toTALS
2l,466,JOO
1,591,270,000
31, 018,000
26,197 ,000
15,202,000
21,926,000
24),771,000
)0,)92,000
18,186,000
34,262,000
28,174,000
l2S ,60),000
$2,188,067,000
Accepted
$
U,466,ooo
82S,210,OOO
16,018,000
'
t
ill'
16,90S,OOO
.ljJ)lJ.!C\
~
$
• l,,..OJ
1,2S].,Ul,ooo
148,m,CII
16, au7,000
9,S",CII
8,391,000
26,197 ,000
9,7S"ooo
\l12.l&lal,OOO
12, 202, OQO
1,400,000
17,726,000
19b,07l,OOO
2h,092,OOO
U,9)6,OOO
29,262,000
19.818.000
6.S8l.000
10,800,000
8.~.aoo
11,77),000
U6,60l,OOO
Q.M;.gop
$1,)02,616,ooo!l Q..SSl.,800,ooo
2.~0I
1..,..<*
hi,..,..
6.~0I
~ .....
Jt,;t.-
Sa'•
11
$80()
II
c/ Includes ;~212,/34,ooo ~t.1t1ft t.enden acoept.ecl at. 1'.1:" 6'fWaP pr1M ., ".
:if Inoludea $$0,929,000 ~titiye tenden acoepte4 at the _ _ _ pr1M of"~
~
ooupcm 1eaua of the . . . length and. tor \he
a.o. . iaftatecl, U. __
the. . M1ls woald prori.de 71alda ot 3.<.>9:t, t".. the 9l-cSq Ml). and 3~, til
182-dq .,,11.. Interest rattUJ on billa are qaoted. in tenia of bank M .. ciiilllltr.
the retum related to the taoa _:Nftli of the btlls pqable at. ...t.ur1~7 "'lIf'l
t.be aaomJt, invested and their length in actual na_ _ ~ clap . .l.ated \0 • J6G'
1Quo. In cant.re.at. y1alda on cert11'1catea, not.ee, aDd bcmd..... o~ted .. ~
or interest on the aount. invested, and JI81a\e tbe 11 her of _ . rata'.... 11
interest ~nt period to the actual naber ot clap 1ft tile period, ld.tb ~
COII1pQIUDd1ng 1£ more than one coapon period 1. imolft4.
-:.!I
•
8_
TREASURY DEPARTMENT
:t RELEASE A. M. NEWSPAPERS
~sdsr, June 4, 1963.
6
June 3, 19 3
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series ot
'aBUrY' bills, one series to be additional issue of the bUls dated March 7, 1963, and
• other series to be dated June 6, 1963, which were off'ered on May 29, were opened
the Federal Reserve Banks on June 3. Tenders were invited for $1,300,000,000, or
lreabouts, of 91-~ bills and for $800,000,000, or thereabouts ot 182-day b11ls.
~ details of' the two series are as follows.
JOE OF ACCEPI'ED
91-day Treasury bills
182-~ Treasury bills
IPETITIVE BIDS z
maturing September ,,1963
: maturing December 5, 196~
Approx. Eq v.
Approx. EqUiv. :
~ce
High
Low
Average
99.238
99.233
99.235
!I
~wU~te
3.01,%
3.034%
3.028%
!I
Price
:
:
98.438 £I
3.090%
98.431
98.434
3.104%
3.098%
:
Annual
~te
I
-11
Yo Excepting two tenders
totaling $1,450,000; ~ Excepting one tender of $160,000
o percent of the amount of 91-~ bills bid for at the 1en1 price was accepted
72 percent of' the amount of' 182-day bills bid tor at the low price was accepted
At TENDERS APPLIED FOR AND ACCEPl'ED BY FEDERAL RESERVE DISTRICTS:
y
Accepted
AppUed For
Accepted
: Applied For
$ 21,466,000 $ 11,466,000 : $ 16,90,,000 $ 1,905,000
825,270,000 •• 1,,251,,111,000
1,591,270,000
648,977,000
I
16,018,000
)1,018,000
8,397,000
2,343,000
16,847,000
26,197,000 :
26,197,000
9,599,000
~chmond
12,202,000 I
1,759,000
15,202,000
9,759,000
•
t.1anta
6,.$00,000
1,400,000
21,926,000
17,726,000 •
picago
194,071,000 :
112,~h1,OOO
48,272,000
243,771,000
~. Louis
16,218,000
24,092,000 :
19,818,000
.30,.392,000
:
Pmeapolls
6,581.,000
.3,801,000
18,186,000
1l,936,OOO
lUUJas City
5,600,,000
29,262,000 :
10,800,000
,34,262,000
8,049,000
17,773,000 ••
.3,049,000
/lllas
28,174,000
:
;Ill
Franoisco
52,195,000
125,60,3,000
116,603!000
8.3.t62~"OOO
•
TOTALS
$2,188,067,000 $1,302,616,000 sI $1,551,800,000 $800,218,000 #
Includes $212,934,000 noncompetitive tenders accepted at the average price of 99.23>
Includes $50,929,000 noncompetitive tenders accepted at the average price of 98.434
On a coupon issue of the same length and for the same amount invested, ·t.he return on
these bills would provide yields of' 3.09%, for the 91-day bills and 3.19%, tor the
182-day bill.s. Interest rates on bills are quoted in terms of bank: discount 'With
the return related to the face amount of the bUls payable at maturity rather ttta.n
the amount invested and their length in actual number of days related to a 360-day
year. In contrast, yields on eertif'icates, notes, and bonda are computed in terms
ot interest on the amount invested, and relate the number of days rema 1ning in an
interest payment period to the actual number o£ days in the period, with semi-annual.
eompoWlding i f more than one coupon period i15 involved.
D-870
iistrict
oston
ew York
bilade1phia
leve1and
-
- 2 -
This is constructive financing for the Treasury,
because it represents the tapping of real savings
and also because this money stays with us for a
long time -- on the average for more than seven
years.
"The large deficit which we face in fiscal
1964 will not carry with it inflationary
consequences, as long as we continue to finance
the deficit in a sound manner, as we did in
fiscal 1962 and 1963. The basic issue is whether
the increase in the Federal debt during the coming
year will be associated with an excessively large
rise in the money supply.
If the deficit is
proPQrly financed, we will have no greater
increase in the money supply than we would have
had with a balanced budget.
"To accomplish this result requires that a
substantial part of the deficit must be financed
out of savings.
In this overall program of noninflationary financing, the Savings Bond Program
has a key role to play. Every Savings Bond
purchased is not only a contribution to the
financial security of the saver and his family, it
is also a contribution to the financial security
and stability of the nation.
In lending your
support to the Savings Bond Program, you are making
a direct contribution toward our national goal of
maintaining a stable price level."
000
TREASURY DEPARTMENT
June 5, 1963
FOR IMMEDIATE RELEASE
SAVINGS BONDS HELD VITAL TO
GOOD DEBT-MANAGEMENT POLICIES
Chicago, Ill., June 5 -- Frank E. Morris, Assistant to
Treasury Secretary Douglas Dillon, told area retail store
executives that Savings Bonds playa key role in the Government's
overall program of non-inflationary financing and directly
contribute to the financial security and stability of the country.
Mr. Morris addressed a meeting of retail industry officials
representing more than 20 of the largest firms at a Chicago Club
luncheon today.
Similar meetings in 27 major industries are
being held throughout the country to promote the sale of Savings
Bonds through the Payroll Savings Plan during the Freedom Bond
Drive.
Crowdus Baker, President and James Griffin, Vice-President
of Sears-Roebuck & Company, were appointed in January by
Secretary Dillon as co-chairman of the drive within the retail
merchandising industry.
The text of Mr. Morris remarks follows:
"The help you are giving us in this campaign is
especially significant to the Treasury, and to our
country, at this time.
"If your mission is successful, and we are
confident that it will be, it will result in
additional savings bond sales in the retail store
industry of about $60 million during the course of
a year -- another $60 million of non-inflationary
financing.
I can assure you that this is a very
significant figure to those who have the
responsibility for managing the Federal debt.
It
will be one more very helpful addition to the $46
billion in Savings Bonds currently outstanding,
bonds which constitute more than 20 percent of the
total Federal debt now held by the pUblic.
TREASURY DEPARTMENT
June 5, 1963
FOR IMMEDIATE RELEASE
SAVINGS BONDS HELD VITAL TO
GOOD DEBT-MANAGEMENT POLICIES
Chicago, Ill., June 5 -- Frank E. Morris, Assistant to
Treasury Secretary Douglas Dillon, told area retail store
executives that Savings Bonds playa key role in the Government's
overall program of non-inflationary financing and directly
contribute to the financial security and stability of the country.
Mr. Morris addressed a meeting of retail industry officials
representing more than 20 of the largest firms ·at a Chicago Club
luncheon today. Similar meetings in 27 major industries are
being held throughout the country to promote the sale of Savings
Bonds through the Payroll Savings Plan during the Freedom Bond
Drive. Crowdus Baker, President and James Griffin, Vice-President
of Sears-Roebuck & Company, were appointed in January by
Secretary Dillon as co-chairman of the drive within the retail
merchandising industry.
The text of Mr. Morris remarks follows:
"The help you are g~v~ng us in this campaign is
especially significant to the Treasury, and to our
country, at this time.
"If your mission is successful, and we are
confident that it will be, it will result in
additional savings bond sales in the retail store
industry of about $60 million' during the course of
a year -- another $60 million of non-inflationary
financing. I can assure you that this is a very
significant figure to those who have the
responsibility for managing the Federal debt. It
will be one more very helpful addition to the $46
billion in Savings Bonds currently outstanding,
bonds which constitute more than 20 percent of the
total Federal debt now held by the public.
- 2 -
This is constructive financing for the Treasury,
because it represents the tapping of real savings
and also because this money stays with us for a
long time -- on the average for more than seven
years.
"The large deficit which we face in fiscal
1964 will not carry with it inflationary
consequences, as long as we continue to finance
the deficit in a sound manner, as we did in
fiscal 1962 and 1963. The basic issue is whether
the increase in the Federal debt during the coming
year will be associated with an excessively large
rise in the money supply. If the deficit is
properly financed, we will have no greater
increase in the money supply than we would have
had with a balanced budget.
"To accomplish this result requires that a
substantial part of the deficit must be financed
out of savings. In this overall program of noninflationary financing, the Savings Bond Program
has a key role to play. Every Savings Bond
purchased is not only a contribution to the
financial security of the saver and his family, it
is also a contribution to the financial security
and stability of the nation. In lending your
support to the Savings Bond Program, you are making
a direct contribution toward our national goal of
maintaining a stable price level."
000
TREASURY DEPARTMENT
June 4, 1963
FOR IMMEDIATE REIEASE
TREASURY DECISION ON ACRYLIC STAPIE FIBER
UNDER THE ANTIDUMPING ACT
The Treasury Department bas determined that acr,ylic staple
fiber 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 determination will be pub-
lished in the Federal Register.
The dollar value of imports of the involved merchandise
received during the 12-month period ending March 1963, based on
an f.o.b. European port price, was approximatelY $2,400,000.
TREASURY DEPARTMENT
June
4, 1963
FOR IMMEDIATE llliIEASE
TREASURY DECISION ON ACRYLIC STAPIE FIBER
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that acr,ylic staple
fiber from West Germany is not being, nor likelY to be, Bold in
the United States at less than fair value within the meaning of
the Antidumping Act.
Notice of the determination will be pub-
lished in the Federal Register.
The dollar value of imports of the involved merchandise
received during the 12-month period ending March 1963, based on
an :f.o.b. European port price, was approximatelY $2,400,000.
"
--
• I
/:J [)
<
~
&II
Information Start
has j
w.
III
7 1III1 r
)1 P' Dr
M"
KDbert Grubb
d~-~~P~~~P!IIPI~~~"'''''
l~b'i1.t:ffa~~l~~
.. ' fs E 'is. ........ is. .... I. ,PlU •• l LB'
James J.
S~xon.
relat10Da and _ _paper work in
aEEi
_
E ).
2
I k ? lu .Is
_ew Yon aQd. V. .tp • .,t.
II'
pg as te' ,., _.
•• v . . vidl tile Mew York publ1c relationa fan of
Gr ...&1 I PI,
...... 1951 .. lNG
~1
.,.U •
Pr••• 1a . . . 'fork ADd executive flDancial ecliteR" of tIae "f"~
(M.t.) lvea1ag Rewa.
Mr. Crubb i . in Room 3203, Main Treaaury Iul1diaa (tID
DlXOB 1)012 "'''1'
"24M).
,
~
,)
-"
TREASURY DEPARTMENT
June 4, 1963
NOTE TO EDITORS AND CORRESPONDENTS:
W. Robert Grubb has joined Treasury's Information Staff
and will serve as the Public Affairs Officer for the Office of
Comptroller of the Currency James J. Saxon.
Before entering Government service, Mr. Grubb was in public
relations and newspaper work in New York and Westport, Connecticut.
From 1951 to 1960 he was with the New York public relations firm
of Carl Byoir & Associates, Inc.
Earlier, he was a news editor
for The Associated Press in New York and executive financial
editor of the Buffalo (N.Y.) Evening News.
Mr. Grubb is in Room 3203, Main Treasury Building
(WO 4-2434)
Dixon Donne1ley
Assistant to the Secretary
(Public Affairs)
- 4 Washington noting Hamilton's appointment as the new nation's firsl
Secretary of the Treasury.
Hamilton is also credited as one of the first leading
Americans actively to promote U. S. seapower.
He successfully
the Congress to build ten armed cutters to combat smuggling.
This fleet, for eight years the y'8il.g Nation's only navy, was
named the Revenue Marine, and was the precursor of the present
United States Coast Guard.
That organization serves under the
Treasury during times of peace.
000
ur~1
- 3 -
Corporation, Portland, Oregon, and delivered for sea duty
on March 10, 1942.
She was one of the original group to be
na:ned for the Founding Fathers of the nati. on.
Ship constructed was the SS PATRICK HENRY.
The first Liberty
Subsequently, 2579
more Liberty Ships came off the shipways located along all
U. S. coastlines, and were named for other American heroes and
patriots.
The SS ALEXANDER HAMILTON was operated throughout the war
for the War Shipping Administration by the firm of Sudden &
Christensen.
The ship saw service at Eniwetok, Palau, Saipan,
Cebu, and called at ports throughout the world during and after
th= war.
In the Treasury Exhibit Room the plaque will hang above a
case containing several important papers and other items relatir.;
to Alexander Hamilton, including the memorandum signed by Presi~
- 2 or individuals most concerned with the persons for whom the
were named.
ship~
These brass plates carry the name of the ship, and
its builder, and the date of its delivery.
Assistant Secretary James A. Reed received the name plate
for the Treasury from Donald W. Alexander, Maritime Administrator.
u. S. Department of Commerce.
The plate and a small model of a
Liberty Ship is mounted on a mahogany plaque.
Mr. Alexander presented the plaque on behalf of the
Liberty Ship Memorial Program being carried out by the American
Institute of Marine Underwriters and the American Merchant Marine
Institute.
Mr. George Inselman, President of the Underwriters'
group, and Mr. Ralph E. Casey, President of the Institute, were
present at the ceremony which took place in the Treasury's
.-
/
I
"
·(.JI(~I
( :'
cf' /1..-
Exhibit ROOjo ;;ome lOJ,OOO persons visited
r;;; (
J
(;
~ 1',
Exhi bi t
Room
last year.
The SS ALEXANDER HAMILTON was built by the Oregon Shipbui:,
DRAFT -- 6/4/63
FOR RELEASE: AFTERNOON NEWSPAPERS
WEDNESDAY, JUNE 5, 1963
TREASURY RECEIVES MEMORIAL OF
SS ALEXANDER HAMILTON
The nameplate and a model of a Lib;;;; S , liihf L 1 •
throughout World War II,
a~d
the first Secretary of the
1".. _' ....
Treasur~,
IlIi..
named for Alexander Hamilton
iwa,s presented to the Treasury
Lt (:.\ tle.~' 1"-
today by government and industrl,maritime officials.
Jrf
The SS ALEXANDER HAMILTON, which went into service three montr.:
after Pearl
Harbo~)was
one of the dozens of Liberty Ships in the
7
Maritime Administration's Reserve Fleet
syste~atically
W4 -r
~wal
/\
are being
sold for scrapping,as their value for further
'€obtaEii:1Jj:y service diminishes.
Maritime officials ·ift 8 ••eltiMwt
and industry are seeking to preserve the memory of these ships,
which were the principal cargo carriers of World War II, by
plac~
their builder's plates in the hands of theE e agencies, organizati::
TREASURY DEPARTMENT
FOR RELEASE:
AFTERNOON NEWSPAPERS
WEDNESDAY, JUNE 5, 1963
TREASURY RECEIVES MEMORIAL OF
SS ALEXANDER HAMILTON
The nameplate and a model of a Liberty Ship named for
Alexander Hamilton, the first Secretary of the Treasury, which
served throughout World War II, was presented to the Treasury
today by government maritime officials and industry leaders.
The SS ALEXANDER HAMILTON, which went into service three
months after Pearl Harbor, was one of the dozens of Liberty Ships
in the Maritime Administration's Reserve Fleet that are being
systematically sold for scrappin& as their value for further
service diminishes. Government Maritime officials and industry
representatives are seeking to preserve the memory of these ships,
which were the principal cargo carriers of World War II, by placing
their builder's plates in the hands of those agencies, organizations,
or individuals most concerned with the persons for whom the ships
were named. These brass plates carry the name of the ship, and
its builder, and the date of its delivery.
Assistant Secretary James A. Reed received the nameplate
for the Treasury from Donald W. Alexander, Maritime Administrator,
U. S. Department of Commerce. The plate and a small model of a
Liberty Ship is mounted on a mahogany plaque.
Mr. Alexander presented the plaque on behalf of the
Liberty Ship Memorial Program being carried out by the American
Institute of Marine Underwriters and the American Merchant Marine
Institute. Mr. George Inselman, President of the Underwriters'
group, and Mr. Ralph E. Casey, President of the Institute, were
present at the ceremony which took place in the Treasury's
Exhibit Room, where it will go on display.
Some 100,000 persons
visited the Exhibit Room last year.
D-871
(OVER)
- 2 The SS ALEXANDER HAMILTON was built by the Oregon Shipbuildinl
Corporation, Portland, Oregon, and delivered for sea duty on
March 10, 1942. She was one of the original group to be
named for the Founding Fathers of the nation. The first Liberty
Ship constructed was the SS PATRICK HENRY. Subsequently, 2579
more Liberty Ships came off the shipways located along all
U. S. coastlines, and were named for other American heroes and
patriots.
The SS ALEXANDER HAMILTON was operated throughout the war
for the War Shipping Administration by the firm of Sudden &
Christensen. The ship saw service at Eniwetok, Palau, Saipan,
Cebu, and called at ports throughout the world during and after
the war.
In the Treasury Exhibit Room the plaque will hang above a
case containing several important papers and other items relati~
to Alexander Hamilton, including the memorandum signed by
President Washington noting Hamilton's appointment as the new
nation's first Secretary of the Treasury.
Hamilton is also credited as one of the first leading
Americans actively to promote U. S. seapower. He successfully
urged the Congress to build ten armed cutters to combat smuggling,
This fleet, for eight years the young Nation's only navy, was
named the Revenue Marine, and was the precursor of the present
United States Coast Guard. That organization serves under the
Treasury during times of peace.
000
- 3 -
and exchange tenders will receive equal treatment.
Cash adjustments will be made
for differences between the par value of maturing bills accepted in exchange
~d
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sal!
or other disposition of the bills, does not have any exemption, as such, and lou
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 hereaf'ter imposed on the principal or interest
thereof by any State, or any of the possessions of the United sta.tes, or by any
local taxing a.uthority.
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 ot
~M
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 ca.pital assets.
Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need
~.
clude in his income tax return only the difference between the price paid tor
s~b
bills, whether on original issue or on subsequent purchase, and the amount actuaJ.l.r
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, preo
scribe the tenms of the Treasury bills and govern the conditions of
thelr.ls~.
Copies of the circular may be obta.ined from any Federal Reserve Bank or Brauch.
- 2 -
!cimals, e. g., 99.925.
P'ractions ~ not be used.
It is urged that tenders
!
made on the printed f'orms and forwarded in the special envelopes which will
!
supplied by Federa1 Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
~vided
Others than
the names of the customers are set f'orth in such tenders.
LD.king institutions will not be permitted to submit tenders except for their
m account.
Tenders will be received without deposit from incorporated banks
ld trust companies and from responsible and recognized dea.1ers in investment
!curities.
Tenders f'rom others must be accompanied by payment of 2 percent of
le face amount of' Treasury bills a.pplied for, unless the tenders are accompanied
r an express gua.ra.nty of'
~ent
by an incorporated bank or trust company.
Dmnediately after the closing hour, tenders will be opened at the Federal
~serve
Banks and Branches, following which public announcement will be made by
le Treasury Department of the amount and price range of accepted bids.
Those
lbmitting tenders will be advised of the acceptance or rejection thereof.
~creta.ry
The
of the Treasury expressly reserves the right to accept or reject any
a.11 tenders, in whole or in part, and his action in any such respect shall be
.na1.
tSS
Lg
Subject to these reservations, noncompetitive tenders for
for the add1tiona.l bills da.ted
-
le.rch 14, 1963
91 days remain~
) and noncompetitive tenders for
, (
-day bills without stated price from any 'one
~
twJk
or
)(XIXJQ
until maturity date on September 12, 1963
lOO,OOOor less for the 182
$2~
.dder will be accepted in full. at the average price (in three decimals) of ac:pted competitive bids for the respective issues.
Settlement for accepted ten-
'rs in accordance with the bids must be made or completed at the Federal Reserve
nIts on
June 13.63
, in eash or other immedia.tely available funds or
a like face amount of Treasury bills maturing
J u n . 1963
•
Cash
TREASURY DEPARTMENT
wa.shington
FOR IMMEDIATE RELFASE,
June 5, 1963
•
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two aeriel
of Treasury bills to the aggregate amount of $ 2,100.,000 , or thereabouts, for
of $
2,1~73.000,
91
m
, in the ~~
JUDe llifi963
cash and in exchange for Treasury bills maturing
as follows:
-day bills (to maturity da.te) to be issued
in the amount of
$
1,300~,OOO
, or thereabouts, represent-
ing an additional amount of bills dated
and to mature
amount of $
,
JUDe 13td963
March 14, 1963
,
til
September 12, 1963, originally issued in the
~
SOO'i:!ooo
,
the additional and original bills
to be freely interchangeable.
112
tJfl
-day bills, for
June
$
8001~OOO
W963 ,
, or thereabouts, to be dated
and to mature
December:Jij: 1963
•
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 pa.yable without interest.
They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 ud
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Eastern/1lII1IXI time,
Monday, JUDe 10, ISIS _
lDfEach tender
Tenders will not be received at the Treasury Department, Washington.
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
~
:t!£''tZ!!O:';e:;z!r;'s'
1li(lj,It:t2!!i!!!!l:::O!:"P
"tt.Shim
'i2jA
F'R'
June
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
$2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing June 13, 1963,
in the amount of
$2,101,373,000, as follows:
91-day bills fto maturity date) to be issued
in the amount of $ ,300,000,OUO, or thereabouts,
additional amount of bills dated March 14, 1963,
mature September 12,1963,originally issued in the
$800,265,000,
the additional and original bills
interchangeable.
June 13, 1963,
representing an
and to
amount of
to be freely
182-day bills, for $800,000,000,
or thereabouts, to be dated
June 13, 1963,
and to mature December 12, 1963.
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 ( $50,000, $100,000 J $500, 000 and $1,000,.000
(maturity value).
Tenders will 'be received at Ii'ederal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Daylight Saving
time, Monday, June 10, 1963.
Tenders will not be
received at the Tr.~asury DeJ?artment, 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 1n the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. 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-872
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Departmment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
March 14, 1963,
(91-days remaining until maturitr date on
September 12,1963) and noncompetitive tenders for ~100,000
or less for the 182-day bills without stated price from anyone
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 Ban~ on
June 13, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing June 13, 1963.
Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturing
bills accepted 1n 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 author1tl.
For purposes of taxation the amount of discount at whioh Treasury
bills are originally sold by the United States is considered to be
interest. Under Seotions 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 a~
sold, redeemed or otherwise disposed of, and such bills are exoluded
from consideration as capital assets. Accordingly, the owner ot
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and thiS
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtalnedfr
any Federal Reserve Bank or Branch.
000
TREASURY DEPARTMENT
June 6, 1963
FOR IMMEDIATE RELEASE
TREASURY TO BORROW $1-1/4 BILLION
BY OFFERING 7-YEAR BONDS
The Treasury, in beginning its cash borrowing program for the remainder
of the year, will offer a 7-year and 2 months bond carrying a 410 coupon at par.
The offering will be made for cash subscription on Tuesday, June 11. The
Treasury bonds are to be dated June 20, 1963, and will mature on August 15,
1970. Payment, which will be due on June 20, may be made through credit to
Treasury Tax and Loan Accounts.
410
In addition to the amount of bonds to be offered for public subscription,
the Secretary of the Treasury reserves the right to allot up to $50 million of
the bonds to Government Investment Accounts.
Subscriptions will be received for one day only, on Tuesday, June 11. All
subscriptions for the bonds addressed to-a-Federal Resa-rve Bank, or-tO the
Treasurer of the United States, Washington 25, D. C., and placed in the mail
before midnight, June 11, 'nll be considered as timely. All subscribers requesting registered bonds will be required to fUrnish appropriate identifying numbers
as required on tax returns and other documents submitted to the Internal Revenue
Service.
Subscriptions to the 4% Treasury Bonds of 1970 from banking institutions
for their own account and from Federally-insured savings and loan associations,
States, political subdivisions or instrumentalities thereof, public pension and
retirement and other public f'lmds, international organizations in which the
United States holds membershi]), foreign central banks and foreign States, and
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, will be received without deposit. Subscriptions from all others must be accompanied by payment of 10 percent of the amount
of bonds applied for, not subject to withdrawal until after allotment. Subscriptions from commercial banks for their own account will be restricted in
each case to an amount not exceeding 10 percent of the combined amount of time
and savings deposits, including time certificates of deposit, or 25 percent of
the combined capital, surplus and undivided profits, of the subscribing bank,
whichever is greater.
Interest will be payable semiannually on February 15 and August 15, in
each year until the bonds mature. The first interest coupon, payable February 15,
1964, will cover interest accrued from June 20, 1963, to February 15, 1964.
D-873
- 2 -
The Secretary of the Treasury reserves the right to reject or reduce any
subscription, to allot less than the amount of bonds applied for, and to make
different percentage allotments to various classes of subscribers. Subject to
these reservations subscriptions in amounts up to and including $100,000 will
be allotted in fUll and subscriptions over $100,000 will be allotted on a percentagebasis but not less than $100,000.
Commercial banks and other lenders are
unsecured loans, or loans collateralized in
scribed for, to cover the deposits required
entered, and banks will be required to make
effect.
requested to refrain from making
whole or in part by the bonds subto be paid when subscriptions are
the usual certification to that
All subscribers to the bonds are required to agree not to purchase or to
sell, or to make any agreements with respect to the purchase or sale or other
disposition of the securities subscribed for under this offering, until after
midnight June 11.
fOIl IIl.IA. 1. II. IlEWSPA.P&RS,
" - 10,
!!P"", .-- n, U6J.
1M,
auuLfs OF TIElSUR!' S WDIlJ JILL 0PnIlDI
!be .,......, ~ em: "d 1u\ ....-t", \lad \1M '.nt... t . . . ....,..,
II u.'7 btl l
., _
. .rie.
... ... ou.r ..n.. too
.t .....
"')00,
t.o be _ Md1\1ouJ. 18_ of t.ba MILt .taW . . . .
wb10h weft otN'e. - .,..
be dat.e4 l . - 1), 196),
t.M ~ . . . . ,. Baftke _ .... 10.
14.1Il.
_.A• • •,
flZ'ID . . . iIwlMC ,.,
• ~, of 91..,. ltSll. aM t_ $800,000,000, fir ~, of ~ ~
!be . . .'". of tbe t,vo _riee an ..
t.u.a •
. . . or ACClPftD
91-cSq TN~ kill.
-!!r!Iw
CUftlftm IIDh
PrJ.oe
S!f!:rr:ttll.,
....... :'I.,
J
,1_.1
99.m
aat.
2.9SU
2.987'
99.2hf
99."
S) peroeat of
S. peroet of
•
2.97S~
•
•
Y
I
•
91....,.
t.be ~ ot
bw.a bU t . at. t.he 1_ PI"1M ... IICCepW
t.be _..aI'\ of 182-cIq 1dll. bid tor a' t.a. 1_ pJi.ee _
aGcepW
tarAt RllZas APPLIF.D POll AD lCC&PTED I f P!DDlL RF..savz DISTJ1IctS.
~
APplied Pur
, • ...,..
.....
•
•
. . twk
27,577,000
1.551.198,000
pId'.edelplda
J1.~1,000
neftl •• d
29,14),000
10,90>,000
=..
Ill'
Au.t.a
ClbS._..
r.-t.
MI.
..,o11a
ISA •• 01..
8\.
Dell..
. . hMolaoo
F
torALS
IU,S6I,ooo
2lS,OS).ooo
)0,1&42,000
I
17,S11,000 •
8S),19I,ooo
I
16,9S7,000.
19,14),000
10,905,000
42,1S2,OOO
I
I
t
27,n7,ooo
11.6,193,000.
24,912,000 I
18,1)1,000.
2l,n7,OOO.
102.180,000
86,l:SO,OO'l.
19,842,000
~,16),OOO
$2,l.28,))9,000
)0,22),000.
gUM,..
*
11,196,000
1,16),61S,OOO
U,e&.9,ooo
IS,OSS,OOO
la,la6,OOO
1),1&f,00D
10l,8S),OOO
6,190,000
6,6-",000
9,160,000
9,111,,000
94,18!.000
$1,]OO,11k,OOO!l .1,41S,621,OOO
AmPW
• 4,296,a
606,4SS.aI
6,.9,.-
12,46k,aat
),4«',GI
1,)"",,,1IS,)9,..
5, zes,.
s,~,GI
S,Uf,6, n1,-
76,021.1
tIOO,m,aI
.3,896,000 .......uU... ~ ~ at. \ - &~ prioI ",,,.
m,1468,OOO . . . wpeUU.. te........ ~cl at, . . . . . . . . . . pIl"1M of,u
• .-pea 1 __ ., \lie _
~ and tflr U. _
lin ...... tM .....
\be.
WCNld prw1de "..lda of ).<4~, trw tbe 91
~l] ., ... ).1S~••
~
hi",
.1""
'IIJ"
.... ltt2-4q billa. IaieNIIt rater _ bill. are Cl1IO'W ill ...... of . . . . . .
1IlUl \at ret.um nlated \0 \be t _ -awrt ot the tat)'. ~ .,
. . . \be _oat. 1Jwe..... aad their locth 1.a aatul , II bIr of ..,. JIIl,aW "
J6tUq 7'bV. III 00Dt.rut., 71el,da OIl . .rt.U1oat.a, _\ea, ... lNB'. an ....
ill t..-. or la.....t. ca toM - .... s..a1.e4, aDd N1a\lt trill. n
dip III
lac 18 . . ~ pap.1Il per10d \0 ,be anual , I e.. ., .... Sa . . pIfWt
~ . " " " " _ i t 110ft t.Ma OM MIIpoa perlod 18 iIINl.....
_Wri."
I" .,
TREASURY DEPARTMENT
-
-
=-=
RELEASE A. M. NEWSPAPERS,
<;aY, June li, 1963.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
BUrY bills, one series to be an additional issue of the bills dated March 14, 1963,
the other series to be dated June 13, 1963, which were offered on June 5, were
ed at the Federal Reserve Banks on June 10. Tenders t4ere invited for $1,300,000,000,
hereabouts, of 91-d~ bills and for $800,000,000, or thereabouts, of 182-d~ bills.
details of the two series are as follows:
g OF
ACCEPTED
&TITIVE BIDS:
. High
Low
Average
91-day Treasury bills
maturing September 12, 1963
Approx. Equiv.
Price
AnnuaJ. Rate
99.254
2.951%
99.245
2.987%
99.248
2.975% 1/
·•
·
·•
:
•
••
••
••
182-day Treasury bills
maturin~ December 12,! 196)
Approx. Equiv.
Annual Rate
Price
98.458
3 .. 050%
9tl.448
3 .. 070%
98.452
3 .. 063% 1/
53 percent of the amount of 91-day bills bid for at the low price was accepted
59 percent of the amount of 182-day bills bid for at the low price was accepted
t. TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DIS1'RICTS:
•• AEElied For
Applied For
Acce;eted
strict
iston
$
27,577,000 $ 17,577,000 • $ 21,296,000
'il York
853,398,000 •
1,16),615,000
1,553,198,000
t1adelpbia
16,957,000 •
31,957,000
11,849,000
ave1and
29,143,000 ••
29,143,000
25,055,000
10,905,000 •
emond
10,905,000
4,426,000
42,152,000 •
tanta
1),789,000
45,.562,000
146,293,000 ••
lcago
108,853,000
215,053,000
24,972,000 •
6,990,000
Louis
30,41+2,000
:
18,137,000
meapolis
6,679,000
19,842,000
23,717,000 :
9,160,000
~sas City
27,717,000
:
30,223,000
9,127,000
34,163,000
~1as
ooo
:
0
86 264 .z
94 2 782 2 000
;1 Francisco
lO2~780.z000
$1,475,621,000
$2,128,339,000 $1,300,114,000
TOTALS
·
·
·
·
·
·
!I
AcceE,ted
$ 4)296,000
606,455,000
6>849,000
22,464,000
3,406,000
13,379,000
45,393,000
5,285,000
5,474,000
5,1l9,OOO
6,717,000
76~092.t0OO
$800,929,000 ~
Includes $243,696,000 noncompetitive tenders accepted at the average price of 99.2LB
Cncludes $57,468,000 noncompetitive tenders accepted at the average price of 98.452
On a coupon issue ot the same length and for the same amount invested~ the "return on
these bills would provide yields of 3.0'-~%, for the 91-day bills, and 3",15%, for
the 1ti2-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 amotult invested and their length in actual nmnber of days related to a
360-day year. In contrast, yields on certificates, notes~ and bonds are compu·ted
in terms o:f interest on the amount invested, and relate the munber of days remaining in an interest payment period to the actual. number ot days in the period, with
semiannual compounding i f more than one coupon period is involved.
- 3 -
<\ncl exch:).n~c tenders will receive cqu::u treatment.
Cash adjustments will 'be IIIade
:for dlfferenccG bctucen the p3.r value of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived frolT! Trco. sury bills, whether interest or gain from the sale
or other disposition of the bills, does not have any exemption, as such, and losl
from t.he s~)le or other disposition of Treosury bills does not have any special
trC[1
trr:r:nt, ns such, under the IntcrnoJ. Revenue Code of 1954.
The bills are subject
to cGtf1.te, inheritance, gift or other excise taxcs, whether Federal or state, but
a.rc exempt from all tm:ation 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 toxinG authority.
For purposes of ta,'l]tion the amount of discount at which
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 ~~
the amount of discount at which bills issued hereunder are sold is not
conslde~
to accrue until such bills are sold, redeemed or otheIVfise disposed of, and such
bills are excluded from consideration as capital a.ssets.
Accordingly, the owner
of Treasury bills (other th8n life insurance companies) issued hereunder need in·
elude in his income tax return only the difference between the price paid for8~
bills, whether on original issue or on subsequent purchase, and the amount ~t~
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 (current revision) and this notice, ~
scribe the terms of the Treasury bills and govern the conditions of their.1ss~,
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 -
cmal.s, e. g., 99.925.
Fractions ~ not be used.
It is urged that tenders
made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions senerally may submit tenders for account of customers
~vided
the names of the customers are set forth in such tenders.
others than
.nking institutions will not be permitted to .submit tenders except for their
account.
D
Tenders will be received without deposit from incorporated banks
d trust companies and from responsible and recognized dealers in investment
curities.
Tenders trom others must be accompanied by payment of 2 percent of
e face amount of Treasury bills applied for, unless the tenders are accompanied
an express guaranty
ot payment by an incorporated bank or trust company.
DDmediately a.1'ter the closing hour, tenders will be opened at the Federal
serve Banks and Branches, following which public announcement will be made by
e Treasury Department ot the amount and price range of accepted bids.
Those
Dmitting tenders will be advised of the acceptance or rejection thereof.
~reta.ry
The
of the Treasury expressly reserves the right to accept or reject any
all tenders, in whole or in part, and his action in any such respect shall be
~.
IS
Subject to these reservations, noncompetitive tenders for
for the additional bills dated
March 21, 1963
Ui5J
, until maturity date on September 19, 1963
,(
91
$
2~0
XXti3IX
or
days remain-
) and noncompetitive tenders for
\iQ
.00,000 or less for the
182"'day bills without stated price from anyone
mi
tiQ
lder will be accepted in tu.ll. at the average price (in three dec1ma.1.s) of ac~ed
competitive bids for the respective issues.
Settlement for accepted ten-
s in accordance with the bids must be made or completed at the Federal Reserve
ks on June 20, 1963
1m
a. like face amount
, in cash or other immediately available f'unds or
ot Treasury bills maturing _ _J.lI:lun_e...l.-r:lI;:Tlu9~6;,ac3___ • Cash
TREASURY DEPARTMENT
Washington
June 12, 1963
FOR ntMEDIATE RELEASE,
TREASURY IS WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two ser:::
of Treasury bills to the aggregate amount of $ 2,100~0,OOO , or thereabouts, f=:
cash and in exchange for Treasury bills ma.turing
June iiu1963
,in the amall,,:
of $ 2,lW'000 , as follows:
-&--daY bills (to maturity date) to be issued _____J_un___e__iii
2rO~,r_l-9-6-3----
in the amount of $
l,30~,000
, or thereabouts, represent-
ing an additional amount of bills dated
and to mature September 19, 1963
iii
amount of $ SOO!iii'OOO
March 21, 1963
m
,originally issued in the
,the additional and original bills
to be freely interchangeable.
~-daY bills, for
$
SOO!O~OO
June 2£iii963
, or thereabouts, to be dated
, and to mature
December 19, 1963
ffif
•
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 bea.rer form only.
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 Md
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Eastern/~ time, Monday. Junedit 1963 __
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 tenderst~
price offered must be expressed on the basis of 100, with not more than three
TREASURY
DEPARTMENT
tea . . .
54*
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
or two series of Treasury bills to the aggregate amount of
2,100,000,000, or thereabouts, for cash and in exchange for
reasury bills maturing June 20, 1963,
in the amount of
2,101,293,000, as follows:
91-day bills (to maturity date) to be issued
n the amount of $1,300,000,000, or thereabouts,
dditional amount of bills dated March 21, 1963,
ature September 19, 1963,Qriginally issued in the
800,595,000,
the additional and original bills
nterchangeable.
June 20, 1963,
representing an
and to
amount of
to be freely
182-day bills, for $800,000,000,
or thereabouts, to be dated
une 20, 1963,
and to mature December 19, 1963.
The bills of both series will be issued on a discount basis under
ompetitive and noncompetitive bidding as hereinafter provided, and at
aturity their face amount will be payable without interest. They
ill be issued in bearer form only, and ih denominations of $1,000,
5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,.000
,naturi ty value).
Tenders will be received at l~ederal Reserve Banks and Branches
) to the closing hour, one-thirty p.m., Eastern Daylight Saving
lme, Monday, June 17, 1963.
Tenders will not be
~ce1ved at the Tr'~asury DeJ?artment, Washington.
Each tender must
~ for an even multiple of $1,000, and in the case of competitive
~nders the price qffered must be expressed on the basis of 100,
Lth not more than three decimals, e. g., 99.925. Fractions may not
e used. It is urged that tenders be made on the printed forms and
)rwarded 1n the special envelopes which will be supplied by Federal
~serve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
stomers provided the names of the customers are set forth 1n such
nders. Others than banking institutions will not be permItted to
bmit tenders except for their own account. Tenders will be received
thout deposit from incorporated banks and trust companies and from
sponsible and recognized dealers in investment securities. Tenders
om others must be accompanied by payment of 2 percent of the face
ount of Treasury bills applied for, unless the tende.rs are
companied by an express guaranty of payment by an incorporated bank
trust company.
D-875
- 2 Inunediately 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 amo~t
and orice range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves th.e right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
March 21, 1963
(91-days remaining until maturit;y date on
September 19,1963) and noncompetitive tenders for ~ 100 ,000
or less for the 182-day bills without stated price from anyone
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
SeJ;tlement for accented tenders in accordance with the bids must be
rl~ade or completed at the Federal Reserve Bank; on
June 20, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing June 20, 1963.
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, Hhether interest or
gain from the sale or other disposition of the bills, does not haw
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 ~
State, but are exempt from all taxati.on 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.
li'or purposes of taxation the amount of discount at which Treasury
bills are originally sold 1JY the United States is considered to be
interest. Under Sections 45L~ (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 c~pital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereundel
need include in h~Ls income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department CirCUlar No 418 (current revision) and th1l
notice prescrib'd the terms of the Tr·easury bills and gov rn the
conditions of their issue. Copies of the circular ma~ b: obtaln~~
any Federal Reserve Bank or Branch.
0
000
8235
~-
concH WASTES
CIA
powuls)
carroN CARD STRIPS made -trom cotton having -a staple at less than 1-3/16 inches in length, COl!BER
WASTE, LAP WASTE, SLIVER ~ASTE, AND ROVING iIASTE, /'iHEniSR OR NOT MANUFACTURED OR OTHER/lISE
ADVANCED rrl VALUE: Provided, howev~r, that not more than 33-l/3percent 01 the quotas shall
be tilled bT cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple- length in the- ease- of the- following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, GerBJall7, and Ita1y&
Country or Origin
:
:
:
United Kinsdom • • • • •
Canada • • • • • • • • •
France • • • • • • • • •
British India ••••••
Nether~and8 • • • • • • •
Switzerland • • • • • • •
Belgium • • • • • • • • •
Japan • • • • • • • • • •
Chi.na • • • • • • • • ••
Egypt • • • • • • • • • •
Cuba • • • • • • • • • •
Ge~
• • • • • • • • •
• • • •••
Ital7 • • • •
J,/ Included
Established
TOTAL QUOTA
:
Total Imports
: Established:
Imports
: Sept. 20, 1962, to:
33-1/3% of: Sept. 20, 1962,
June 10. 1963 __t __To_tal Qt!Qt&_L to June 10. 1963
.
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21.263
1,430,190
239,690
162,778
49,926
51,982
11,234
33,150
36,070
25,443
7.088
5,482,509
2,015,020
1,599,886
1,4.4l,152
1,091,408
75,807
75,183
22,747
14,796
12,853
21,836
-1,188,427
in total imports, column 2.
Prepared in the Bureau ot Customs.
The country deSignations listed in this press release are those specified in ~residential
~roclamat~on No. 2351 of September 5, 1939.
Since that date the names of certain countries
ha.ve
been
cha.nged.
II
8235
TREASURY DEPARTMENT
Washington, D. C.
I~'!,SDL\n;
RELEASE
THURSDAY, JUNE 13,1963
0-876
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
CO'l'I'ON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September 20, 1962 - June 10. 1963
Country of Oriein
E.:;ypt and the AngloS~JPti~~ Sudan •.••••••
.:--e r-tl
••• • • • • • • • • • • • • • • • • •
British India •.•.•••.•••
China •.•...••...•...•.••
i·!c.>:i co ••••••••••••••••••
Brazil •..............•••
Union of Soviet
Socialist Republics •••
ArGentina ••
••••
••
lIci ti ....
. ...••
Ecuador •••••••••••••••••
Established Quota
Imports
183,816
247,95 2
2,003,483
1,370,791
8,883,259
618,123
782,857
35,995
81,640
8,883,259
618,723
415,124
5,203
231
9,333
Established Quota
Country of Origin
Honduras
Paraguay
Colombia
··............
.
............ .
·............ .
Iraq •...•.•••.•.•. _..••
British East Africa •••
Netherlands E. Indies •
Baz-bacios ••••••••••••••
yOther British W. Indies
Nigeria •••••••••••••••
2/0ther British
W. Africa
l/Other French Africa •••
Algeria and Tunisia •••
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
J/
Cotton 1-1/8" or more
Imports August 1, 1962 - JllruL10_lq~":t
Established Quota (Global) - 45,656,420 Ills.
length
~- 3/8" or more
Stap~e
~-5/32" or more and. under
1-3/8" (Tangu:1.s)
~-~/a"
or
:I..-3/S··
1DO%"e
&ZJd. UDder
Allocation
Imports
39,590,778
39,590,778
1,500,000
_a..,.s,.61.:2
1-81.,360
.3 .. 5 6 0 _ ' _ 9 3
752
871
124
195
2,240
71,388
21,321
5,371
16,004
689
Imnorts
e
TREASURY DEPARTMENT
<' VI
i
Washington, D. C.'
IMl·tEDIATE RELEASE
.
THURSDAY,
JU~~
13,1963
.
D-876
Preliminary data on imports for consumption of cotton
established by the President·s Proclamation
~~d
cotton waste chargeable to the quotas
as amended
of September 5, 1939,
COTTON (other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under
Imports Sep~~~pe~_2~ 1962 - June 10.___1963
Country of Oriein
Established
Country of Origin
Imnorts
....
-
Quot~
Er,ypt and the Anglo~gypti~~
Sudan ••••••••
~
.:'e z-'I.l ••••••••••••••••••••
3~itish
~:lina
India •••••••••••
••••••••••••••.••••
..
i
r·~::!>: CO ••••••••••••••••••
Brazil ••.••...•..••.••••
Vnion of Soviet
Socialist Republics •••
ArGentina •••••••••••••••
lIc.i t1 ••••••••.••••••••••
E~~ador
••••••••..•••••••
3/4"
Established Quota
Hond'llras ••••••••••••••
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
782,857
35,995
81,640
2,240
Netherlands E. Indies •
71,388
II
8,883,259
618,723
•••••••••••••
9,333
1/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
~/ Other than Algeria, Tunisia, and Madagascar ..
2/
Cotton 1_1/8· or more
- .Tune laLtq6~
~rts Augustl,~_J.262
Establisbed Quota (Global) - 45,656,420 .tbs.
Staple length
11
1-3/8 or more
1-5/32" or more and. under
l~~~_cr~s)
124
195
Bar-bados ••••••••••••••
lIOther British Y. Indies
NIgeria •••••••••••••••
YOther British W. Africa
Yother French Africa ....
Algeria and Tunisia •••
475,124
5,203
237
752
871
Paraguay ••••••••
Colombia ••••••••
• ••
Iraq •••••
British East Africa •••
Alloeation
39,590,718
1.'iMJ'Q(')
~
39,590,778
21,32l
5,377
16,004
689
Imports
-2COTTON WASTES
(In pounds)
COTTON CARD STRIPS made -from cotton ho.~ling·-a staple of leas thon 1-3/16 inCh".J3 in length, COlffiER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING ~'/ASTE, 'NHETHER OR NOT l-1A.NUFACTURZD OR OTHER/lISE
ADVANCED Iil VALUE: Provided, ho~cver, that not more than 33-1/3 percent of the quotas shall
be tilled by cotton wa.stes other than comber wastes made from cottons of 1-3/16 inches or more
1r stap1~ length in the- casc- of th~ fol1o'rling countries: United Kingdom, Franc~, Netherlands,
Switzer1and~ Be1g1um~ Germany, and Italy,
:
:
Countr,y ot Origin
Established
TOTAL QUOTA
_ _ _ _ _-'1
United KinBdom •••••
Canada • • • • • • • • •
4,323,457
239,690
France • • • • • • • • •
227,420
British India • • • • • •
69,627
Nether~aods • • • • • • •
68,240
Si:itzerland • • • • • • •
44,388
BelgituD • • • • • • • • •
.38,559
Japan • • • • • • • • ••
341,53.5
Ch1.na • • • • • • • • • •
17,322
Egypt • • • • • • • • • •
8,13.5
Cuba • • • •
1,430,190
239,690
162,778
49,926
51,982
11,234
33,150
Imports
Sept. 20, 1962,
to June 10. 1963
1,441~152
-
1,091,408
75,807
75,183
22,747
14,796
12,853
21,836
-
36,070
25,443
2,015,020
1~.599,886
76,329
21,263
5,482,509
Established
33-1/3% of:
Total Quota.:
--
6~544
• • • • • •
~r.man1
• •
• •• • • • • • •
Italy • •
• • • • • •
11 Included
:
Total Imports
:
: Sept. 20, 1962, to:
:.
. June .10. 1963
:
7,OS8
1,188,427
in total imports, . column 2.
Prepared in the Bureau
or
Customs.
The country designations listed in this press release are those specified in Presidential
rrocLnmation No.
\."t.n.'V'«!l
b~a.'C'\.
23SL of September S.
c.hft.'("'\£"~ed_
1939.
S~nce
that date the names of certain countries
II
8236
TREASURY DEPARTI'IENT
WashinGton, D. C.
IJ.IHEDIATE RELEASE
11
v..l..
D-877
THURSDAY, JUNE 13,1963
The Bureau of Customs announced today preliminary figures showing the
quanti ties of 'tlheat and 'vlheat flour authori zed to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1963',
as follows:
-
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Wheat
Country
of
Origin
.
.. Established
Established
Imports
Imports
Quota
Quota
:May 29, 19 63, :
: May 29 J 196J,
:to June 10, 1963
: to June 10,11
(Bushels)
(Bushels)
(Pounds )
(Poundsf
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
795,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
3,815,(0)
1 1 °00
1,000
----'
800,000
795,000
~,ooo,ooo
'l Nil:
/,w~tI·
TREASURY DEPARTHENT
HashinGton, D. C.
Ir.-Il<1EDIATE RELEASE
THURSDAY, JUNE 13,1963
D-877
The Bureau of Customs announced today preliminary fi@lres showing the
quantities of wheat and wheat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1963,
as follows:
·•
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Wheat
Country
of
Origin
·
•
·
.
Imports
Established :
Imports
: Established
Quota
Quota
:May 29, 1963,
:May 29, 19 63, :
:to June 10, 1963
:to June 10, 1963
(Pounds)
(Bushels)
(Pounds)
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
100
Syria
New Zealand
Chile
100
Netherlands
Argentina
2,000
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
100
Socialist Republics
100
Belgium
795,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
3,815,000
80o l oo0
795,000
4,000,000
3,815,000
8237
TREASURY DEPARTHENT
WashinGton, D. C.
Il-IMEDIATE RELEASE
THURSDAY, JUNE 13,1963
The Bureau of Customs announced today preliminary figures showing the
quantities of '''heat and 'v,heat flour authorized to be entered, or withdralffi
from warehouse, for consumption under the import quotas established in the
President's proclamation of May 28, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1%2,
as follows:
Wheat flour, semOlina,
crushed or cracked
wheat, and similar
wheat products
Wheat
Country
of
Origin
Established
Imports
Established
Imports
Quota
Quota
:May 29, 1962, :
: May 29, 196~,
: to Hay 28, 1963:
: to May 28, 1\
(Bushels)
(Bushels)
(Pounds)
{Poundsf
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
New Zealand
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
Greece
Mexico
100
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
795,000
800,000
795,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1 1 °°0
1,000
tf;,-OOO ,000
3, 815,00J
l~
92Jt
THF.:ASUHY DE PAWnlE 11'1'
HUDhlngton, D. C.
IMMEDIA'l"r~
H£lill\S£
THURSDAY, JUNE 13,1963
D-878
The Bureau of Customs announced today prelIminary figures showing the
quantities of ·"heat and \-/hcat flour authorized to be entered, or withdrawn
from warehouse, for consumption under the import quotas established in thl.!
President's proclamation of Muy 28, 1941, as modified by the President's
proclamation of April 13, 1942, for the 12 months commencing May 29, 1962,
as follows:
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Wheat
Country
of
Origin
Canada
China
Hunr;ary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
}t'rance
Greece
~1exico
Established
Quota
795,000
Established
Quota
795,000
100
100
100
100
2,000
100
1,000
100
Panama
Uruf.,'1.lay
Poland a.nd Danzig
S\feden
Yugoslavia
Norway
Canary Isltllld6
Rumania
Guatemala
Brazil
Union ot' Soviet
Sociuli~t Republics
Belgium
3, 815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1 1 °00
1,000
3,815,000
168
924
1,000
100
100
100
100
---.8uu,OOv
795 , 000
11 ,000,000
j 816
.,
.., 0'/)-.
8238
-2-
Commodity
Period and Quantity
Unit
of
: Ouantity
..
z.,;;
as of
June 1.Jl
Absolute Quotas:
Butter substitutes, including
butter oil, containing 45%
or more butterfat •••••••••••••
Calendar
Year 1963
Cotton products, except cotton
wastes, produced in any stage
preceding the spinning into
yarn •••••••••••••..•••••...•••
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter) •••
l/lmports through June 10, 1963.
D-879
1,200,000
Pound
12 mos. from
Sept. 11, 1962
1,000
Pound
12 mos. from
August 1, 1962
1,709,000
Pound
Quota F1I
Quota 111
8238
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
THURSDAY, JUNE
1~,1963
D-879
The Bureau of Customs announced today preliminary figures on imports for COQSwt
tion of the following commodities from the beginning of the respective quota perl~1
through June 1, 1963:
Commodity
Period and Quantity
Unit
of
:Ouantity
!aport;
as of
Jun' U
Tariff-Rate Quotas:
Cream, fresh or sour ••••••••••••••
Calendar Year
1,500,000
Gallon
Whole Milk, fresh or sour •••••••••
Calendar Year
3,000,000
Gallon
Cattle, 700 Ibs. or more each
(other than dairy cows) •••••••••
April 1, 1963June 30, 1963
120,000
Head
Cattle less than 200 lbs. each ••••
12 mos. from
April 1, 1963
200,000
Head
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish ••••••••
Calendar Year
24,874,871
Pound
Quota F111
Tuna Fish •••••••.••.•••••••..•••••
Calendar Year
63,130,642
Pound
19;864,'
12 mos. from
Sept. 15, 1962
114,000,000
36,000,000
Pound
Pound
58, 7S6,~
29, 716,~
Pound
2,972,2
Pieces
65,673,'
White or Irish potatoes:
Certified seed ••••••••••••••••••
Other ••....•.•••..•.••...••.•...
Walnuts •••...•.•••••••••.•••••••••
Calendar Year
5,000,000
Stainless steel table flatware
(table knives, table forks,
table spoons) ••••••••••••••••••
Nov. 1, 1962Oct. 31, 1963
69,000,000
28,.
-
l/Imports for consumption at the quota rate are limited to 12,437,436 pounds duri~d
first six months of the calendar year.
1 /lmports through June 7, 1963.
TREASURY DEPARTMENT
Washington
\TE RELEASE
DAY, JUNE
1~,1963
0-879
:le Bureau of Customs announced today preliminary figures on imports for consumpI: the following commodities from the beginning of the respective quota periods
1 June 1, 1963:
Commodity
Period and Quantity
Unit
of
: Quantity
Imports
as of
June 1, 1963
Rate Quotes:
fresh or sour ••••••••••••••
Calendar Year
1,500,000
Gallon
320,222
ilk, fresh or sour •••••••••
Calendar Year
3,000,000
Gallon
3
700 lbs. or more each
r than dairy cows) •••••••••
April 1, 1963June 30, 1963
120,000
Head
8,942
less than 200 Ibs. each ••••
12 mos. from
April 1, 1963
200,000
Head
28,841
resh or frozen, filleted,
cod, haddock, hake, po1cusk, and rosefish........
Calendar Year
24,874,871
Pound
Quota Filled
;h.~
Calendar Year
63,130,642
Pound
19,864,501
12 mos. from
Sept. 15, 1962
114,000,000
36,000,000
Pound
Pound
58,756,342
29,716,167
Calendar Year
5,000,000
Pound
2,972,227
Nov. 1, 1962Oct. 31, 1963
69,000,000
Pieces
65,673,963-
••••••••••••••••••• s
•••
Irish potatoes:
ied seed ••••••••••••••••••
••••••••••••••••••• 8
••••••
••••••••••••••••••••••••••
s steel table flatware
knives, table forks,
spoons) ••••••••••••••••••
s
~
fo~
11
21
consumption at the quota rate are limited to 12,437,436 pounds during the
months of the calendar year.
through June 7, 1963.
-2-
Unit
of
:Ouantity ;
Import;"'
aso£
June 1. ~
1,200,000
Pound
Quota Fill~
Period and Quantity
Commodity
.
Absolute Quotas:
Butter substitutes, including
butter oil, containing 4570
or more butterfat •••••••••••••
Calendar
Year 1963
Cotton products, except cotton
wastes, produced in any stage
preceding the spinning into
yarn ••••••••••••••••••••.•••••
12 mos. from
Sept. 11, 1962
1,000
Pound
Peanuts, shelled, unshelled,
blanched, salted, prepared or
preserved (incl. roasted peanuts but not peanut butter) •••
12 mos. from
August 1, 1962
1,709,000
Pound
1/lmports through June 10, 1963.
D-879
,
Quota
Fil~
8239
I
I
TREASURY DEPARTNENT
~'lashington
D-1HlIDIATS RELEAS2
THURSDAY, JUNE 13,1963
D-880
The Bureau of Customs has announced the following preliminary figures shovill
the imports for consumption from January 1, 1963, to June 1, 1963, inclusive, o~
comrnodi ties urrler quotas established pursuant to the Philippine Trade Agreement
Revision Act of 1955:
Commodity
···
·
Established Annual
Quota Quantity
··
·
·
Unit
of
Quantity
·
·.
·
Imports
as of
June I, 1963
Buttons •••••••••
680,000
Cigars ••••••••••
160,000,000
Number
Coconut oil •••••
358,400,000
Pound.
172,739,448
Cordage •••••••••
6,000,000
Pound.
2,504,552
Tobacco •••••••••
5,200,000
Pound
3,608,309
Gross
126,693
5,492,310
TREASURY DE? ARTIilllJT
1;lashiIlGton
H1HIDIATE RELEASE
THURSDAY, JUNE 13,1963
D-880
The Bureau of Customs has al1I101..1nced the follo~dng preliminary figures showing
the imports for consumption from January 1, 1963, to June 1, 1963, inclusive, of
commodities under quotas established pursuant to the Philippine Trade Agreement
Revision Act of 1955:
Corrunodity
·
··
·
Established Annual
Quota Quantity
···
Unit
of
Quantity
·•
·•
,
Imports
as of
J1U1e 1, 1963
Buttons •••••••••
680,000
Cigars ••••••••••
160,000,000
Number
.coconut oil •••••
358,400,000
Pound
172,739,448
Cordage •••••••••
6,000,000
Pound
2,504,552
Tobacco •••••••••
5,200,000
Pound
3,608,309
Gross
126,693
5,492,310
taamIr .,..,..,
~D.C.
~Wlm"SI
0-881
THURSDAY, JUNE 13,1963
I'BELIIalWlr DJ.TA OK IJaIORtS f(R CONSOlfPT10K 01 tImtANt1FAC'ftJRO LEAD 1HD ZINC ClURGiUBLlfO m
sr fUSlDmw. PBOCLUW'IOIl 110. ,2S7 or SlffDlBl&
1'51
aa.
Ql1f1t1S mABlJsup
GDABfIRLT GDDfl JlRIQD - April I - June 50, 1905
DI!GIlfS m:M ,,1
a
•
•
count "7
ot
I
Pro duoti on
I
I
10, 1'163
ITD{ 322
biilUOD
or ba.se &&111011,
• lead 111 pip aDd ban, lead
LeQ,d.be~
J
~
~ __,.__ _
lead D.I.;>.f.
- - - - - - - - - IC&I3.rU rl,y Q10ta.
lm:lorots ,Duthbla L~·:i
D=?oJ"'ta
Pounds} .
10,080,000
~
-- -
10,080,000
(POWlds)
23,680,000
4:0,354,611
Be 1 glaD CODgo
Bel glwa aacI
Luzs~buP, (~otal)
•
Bol\Y1&
Canads
5,~0,OOO
4,505,921
1,,'"0,000
3,523,370
-
Itaq
Medoo
'eN
l',l~,OOO
14,311,063
tJD. SO. AMoa
14,180,000
14,880,000
-
1\apsloria
All other to...l.
o:u:nrl.. (total)
The aLo~e c~u"tr~
Qo~n~r~
••
h.~c
~
',5&0,000
~~sisn~ti~ns are
•• n
z
lTEH ' "
I
I
lTDl ' "
•
ores, aue dtut, I <irou, NOW!lI3d lea.d, 8~:-a;l
: Uno-bla.ri.ng ores or &ll IdDds, I Z1no la bloOD, pip, Of' al&ha.
and mttea
I led, ant1!lonl&l lea.d, anUJ except pyrites ooata.in1ng not
I old Nld wom-ol.R %iDO, n"
I lII;onlal acr&p lea.d, we lIIiiW, ,
over 3~ ot z1no
I oalT to be "'ilIaZlUtac'tl.U"'a~ ziDo
• &11 &1107. or oomblna:UolU of
•
I
d.ro.a, aDd. z1ao ~1lP
,
: Qlarle rfi-Qiotii
• Dutla.bla. 1.ea.d
Aunra.lla
Leaa
- Jun.
J.pr i I
=h.nu~d_
5,643,502
15, no, 000
15,005,528
:
l
Qoa.rta r l,rc:uota.
Dut1a.ble Un:
Ic!)Orh
ons
~--(.PoW:idS
..
SFMO,OOO
lj, 574 ,628
..-
7.520,000
7,520,000
37,140,000
34,67~,B35
",480,000
-
66,480,000
",110,000
36 ,880 ,000
7O,4ao.ooo
;6,90 11,077
'.320.000
5,120,143
12,180.000
IO,2B9,688
'5,120,000
21,639,873
"760,000
3,758,068
,.~,OQO
-
-
15.?'O.000
10,571+,209
',010,000
6,080,000
11•.a.aoo
those specified in Presidential Procl~.Mtion No. 3257 of September 22,
•
17,840,000
1956.
'-___ GOD
6,080,:JOO
Since th~t d.te th. nMaca of c~rtajft
~ D::!?fl!m"'!A'Y
~J).c.
D-881
THURSDAY, JUNE 13,1963
I'B&LDlDWl1 DATA Oll DlPOR1'S rm CO!ISID!PTION fl? U!:l'.1).1WAC1TJ?ZD L~ .Uill ZlHC CWJlC'Z.l.Kt.8 TO ~ QJJO'tJS ESTARlelSHE'D
BY Pru':S!DEmLU. PP.OCLAllA'rION UO. '257 C1 SXPfEl-'EZR 22, 1'58
ClI14RnRl.T au PZRIOD - Apr i I
- Jun e 30, 1963
IMPOafS. April
- June 10, 1363
IT05 )~2
ITi:2l "1
I Lead
:
•
Md. mttu
I
:
---------~:CWI.~-l'-:--t-"..,rl..1:---c:uota
l
Dutiable. LS3.d
(Foun:ts}
~lg1an
10,080,000
(Pounds)
10,080,000
23,660,000
-
(total)
~
5,040,000
4,505,921
•
13,«0,000
3,523,370
15,,20,000
..
ltal,y
MI xio 0
Peru
16,160,000
14,511,063
tin. SO. !trioa
I.e, 880,000
Ilt,880,Ooa
-
TUgoslOT1a.
All other foreign
o~rl. •• (~ots.l)
-
20,354,611
t£~n
Iml
6,560,000
5,643,502
:hen9~d.
-. -OiOunds).....
I
..
324
(Pcun:;U)
-
•
s,44O,OOO
If,571i,628
1,520,000
7,520,000
31,840,000
.
,G,eso,ooo
36,880,000
70,.450.000
;6,90 1+,077
'.320,000
5, 120, I ~3
12,UO,OOO
11),289,688
'5,l2O,000
21,639,873
,,760,000
3,758,068
15,7£0,000
10,574,209
',080,000
6,080,000
",460,000
..
-
66,~80,OOO
3257
af Sep~e~bcr
54,67lt,855
,,6co,ooo
•
-
17,e40,OOO
-
•
15,005,528
The aL~ve c~untr~ ci~siiniti~ns zrc th~~t specified in PresidEntial Procl.amation No.
countriES hev(
'21
I
•
-
..
llelg1.um and
BoUvi&
l'YEl4
I
I
a lead in pigs and bars, lead
durt, I dross, NI3W!<lad le~d, t!~:'a?
Zlno-bila.ring oras or all ldnds, s Z1JlC) In bloo~, .,1&1, or lu..1a.
: le!ci, e.nt1-':loo1a.1 hJ..d, antiI except pyrites ooota1n1n.g- nO"t
I old snd 1I"Orn~~ llM, n\
I :Ilon1~l £e~ had, typll maW, I
OVIL- )~ or tiM
I only to be N:nanu!4Ctund, uno
I all 8.1107. 01" GOQbinaUolU or
I
:
dNu, and t1no ald.:nlll9
t
10M n.s.;:>.f.
t
t
:~..:t"rl.1 CUota.
:~arly c.uota.
H.lL:art.3rll' ~o-ta
??2rh : Dutbblt L'<.l.d
I!? ort a : DuUable !in:
~oo%"h
: Br. iidFht
Y5,p0r-t.
Coo go
Lux~~burg
ba.:Je bUIll on,
LOll.d ... tx;aring ONS, aUG
Countl7
or
I'r-o:tuotioo
tu!'tnU.1a
tiiiliton or
•
17,840,000
22, 1958.
6,coo,CQQ
6,080,000
SinCE that date th~ na~es ~f Ctrt~in
I
I
G.<'}l·-
o,t,;/
I
I
I
I
STATUTORY DEBT LIMIT ATlON
Asof __~Mg~Y~1~1~.~19~6~1~____
WasbiDstoD,
June 14,1%3
Section 21 of Second Liberty Bond Act, as amended, provides that the face amount of obll,ations i ..ued ulld
that Act, and the face amount of oblisations guaranteed as to principal and interest by the United States (eacej>t .u~b IIIthOlI~.
obligations as may be held by the Secretary of the Treasury), "Shall not uceed in the aSFesate U85 000 000 800~
Ju.ne 30, 1959; U. S. C., title 31, Bee. 757b), outstanding at anyone time. FOI purposes of thiS section th~ cur~fllt' (An~
value of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder ~~
aidered as Its face amount." The Act of May 29, 1963 (P. L. 88-30 88th CoDsresa) provides diat the above limitl~' "'_
temporarily increa!led (1) during the period beginning May 29,1963, and ending o'n June 30:196~ to '307,000 000 ooOloa(2~)~
the period beginning on July 1, 1963, and ending on August 31,1963 to '309,000,000,000.
'
, , -.
The following table shows the face amount of obligations outstanding ;nd the face amount which Cln still lit i,h!C
under this limitation;
Total face amount that may be outstanding at anyone time
$307,000 00-"
Outstanding Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing;
Treasury bills ---------$49,73",050,000
Certificates of indebtedness _ _ __
22,169,068,000
Treasury notes _ _ _ _ _ _ _ __
52,126,411,000 $124,028,529,000
,
Bonds Treasury _ _ _ _ _ _ _ _ _ __
• Savings (Current redemption value)
United States Retirement Plan bonds
Depositary _ _ _ _ _ _ _ _ _ __
R. E. A. series _ _ _ _ _ _ _~_
Investment series _ _ _ _ _ _ __
80,072,407,650
48,230,927,090
157,800
104,268,500
30 ,002,000
1.945.295.000
Certificates of Indebtedness Foreign series _ _ _ _ _ _ _ __
Foreign Currency aeries _ _ _ _ __
400,000,000
25,456,750
Treasury notes·
Foreign series - - - - - - - - Treasury bondsForeigD Currency series _ _ _ _ __
Special Funds Certificates of indebtedness _ _ _ _
Treasury notes _ _ _ _ _ _ _ _ _
183,000,000
604. 550. q)8
1,213,007,688
8, 794,721,791
4,541,458,000
3() • 225. 16o. 000
Treasury bonds
43, 561, 539,791
Total interest-bearing - - - - - - - -_ _ _ _ _ _ _ _ 301,186,134,519
Matured, interest-ceased
342,414,933
Bearing no interest:
United States Savings Stamps _ _ __
54,36;,857
Excess profits tax refund bonds _ __
699,?84
Special notes of the United States:
Internat'l Monetary Fund series ____ 2 t 976, 000.000
Internat'l Develop. Ass'n. series _ _ _
150,956,600
Inter-American Develop. Bank seties
125.000,000
3.307.020.241
Total _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 304 ,835,569, 693
Guaranteed obligations (not held by Treasury):
Interest-bearing:
Debentures: F. H. A. & DC Stad. Bds._
575,785,750
Matured, interest-ceased _ _ _ _ _ __
1.201.825
576,987.575
Grand total outstanding _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the public Debt _..;:.M.:..a.:.;o·Y,--...:::3..:::1;..JtE-...:l::.9,,6~3,--___
(Date)
(Daily Statement of the United States Treasury, _ _M~-.saafoly:....-3.J..l"""'--ooIol...9:..l.6L.3,1.---_)
Out8tandinB _
(Date)
Total gross public debt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Guaranteed obliBations not owned by the Treasury _ _ _ _ _ _ _ _ _ _ _ _ _ __
Total gross public debt and guaranteed obligations _ _ _ _ _ _ _ _ _ _ _ _ _ __
Deduct - other outstanding public debt obligations not subject to debt limitation - - - - -
D-882
STATUTORY DEBT LIMITATION
As of
May
31.196')
Washington, June 14 ,19f)3
Section 21 ot Second Liberty Bond Act, as amended, provides that the face amount of Obligations iSlJued under auth'lfity of
Act, and the face amount of obligations guaranteed as to principal and interest by the United States (except such guaranteed
ations as may be held by the Secretary of the Treasury), "Shall not eJ:ceed in the aSFegate '285,000,000,000 (Act of
30, 1959; u. s. c., title 31, seC. 7nb), outstanding at anyone time. For purposes of tbls section the current redempt.ion
of any obligation issued on a discount basis which is redeemable prior to maturity at the option of the holder shall be coned as Its face amount." The Act of May 29, 1963 (P. L. 88-30 88th Congress) provides that the above limitation sh.ll be
orarily increased (1) during the period beginning May 29, 1963, and ending o'n June 30,'1963 to '307,000,000,000, (2) during
etiod beginning on July I, 1963,and ending all AU8ust 31,1963 to '309,000,000,000.
er The
this following
limitation:table shows the face amount of obligations outstanding and the face amount which can still be issued
al face amount that may be outstanding at anyone time
ltstanding $)07,000.000,000
)bligtltions issued under Second Liberty Bond Act, 8S amended
Interest-bearing:
Treasury bills Certificates of indebtedness
Treasury notes
Bonds Tre"suty _ _ _ _ _ _ _ _ _ _ _ __
Sav ings (Current redemption value)
United SeateB Retirement Plan bonds
Depositary _ _ _ _ _ _ _ _ _ _ __
R. E. A. series _ _ _ _ _ _ _ _ _ __
Investment series _ _ _ _ _ _ _ __
Certificates of Indebtedness -
$49.731,050, 000
22,169,068,000
52,126.411.000
$124.028,529,000
80,072,407,650
4B,2)0,927,090
157.800
104,268,500
30,002,000
4
1.9 2,295,000
Foreign series
Foreign Currency aedes _ _ _ _ __
400.000,000
25,456,750
Treasury notesForeign series __._ _ _ _ _ _ _ __
183,000,000
Treasury bondsForeign Currency series _ _ _ _ __
604.550,Q)8
1,21),007,688
Special Fun.ds Certificates of indebtedness _ _ __
Treasury notes _ _ _ _ _ _ _ _ __
8.794,721.791
4,541,458,000
Treasury bonds
10 .225,160,000
43.561.5)9.791
Total interest-bearill8 - - - - - - - - - - - - - )01,186,1)4,519
Matured, interest-ceased _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
34 2,414,933
Beating no interest:
United States Savings Stamps _ _ _ __
54.36),857
699,784
Excess profits tax refund bonds _ _ __
Special notes of the United States:
Internat'l Monetary Fund series _ _ __
Internat'l Develop. A8s'n. series _ __
Inter-American Develop. Bank seri.es _ _
2,976,000.000
150,956.600
125,O()O,OOO
3.307,020,241
304.835,569.693
----------------------------
fotal
laranteed obligations (not held by Treasury):
.nterest-beari ng :
Debentures: F. H. A. & DC Stad. Bds._
575.785.750
,fatured, interest-ceased _ _ _ _ _ __
1,201,825
576.987.57~
:Jund total outstanding _ _ _ _ _ _ _ _ _._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
./lnce face amount of obli8atioos issuable under above authority
R ecooci lemeot with Statement
0
J05,41?,557,268
1,587,442,732
' D e bt __M~P..yL~3~1::.J1~]:..L..9-"'6....:.3--f t h e pu bl Ie
(D.te)
' d St a teI
Treasury
. . .~l.1...:96.Jo6L.3,---_ _
(Daily Statement 0 f t b e Unite
I . _ _M~,'l;.:;;yL.-..-.3'"""1.(D.te)
an ding ,tal 8[019 s public debt
-----.----------_
laran t ee d oblt'ge-tions not owaed by the Treasury
.
lic debt and guaranteed obligauons
,ta 1 gross pu b
.
d b 1"
•
·
:t - other out stan d Ing
pu blic debt obligations not subJect to e t lmltatlOn _ _ _ __
D- RilL
305,2 0 3,811,943
')76.987, 5"(2
)05.7 8 0)799.518
J68i24?~
305. 412,557,268
(R..esu LT J'
The Treasury announced today that the response to its recent
offering of 4 percent bonds maturing in August, 1970 had exceeded
its expectations.
Nearly 24,000 individual subscriptions were received
for an aggregate of about $16t billion.
full subscriptions up to
$100,000.
The Treasury will allot in
All other subscriptions will be
subject to a 5 percent allotment with a minimum allotment of $1&8,000
per subscription.
Although an allotment ratio of 5 percent is
low, the resulting total of about $1.9 billion of accepted
subscripti~6
will extend well beyond the normal range of overallotment.
the total of accepted eligible
the $lt billicm originally
subscrip~i0ns
30Ugh-.::.
unus~
Because
will substantially exceed
·oy -che:;:'reasury, -ca.e Treasury will
make no allotments ~o Governmen~ ~nves~ment accoun~s. II~ Details by
_--
.....
Federal Reserve
announced
~is-cricts
nex~ wee~.
as to
3ubscrip~ions
and allotments will be
TREASURY DEPARTMENT
June 14, 1963
FOR IMMEDIATE RELEASE
RESULTS OF TREASURY'S CASH OFFERING
The Treasury announced today that the response to its
recent offering of
4 percent bonds maturing in August,
1970 had exceeded its expectations.
Nearly 24,000 individual
subscriptions were received for an aggregate of about
$16-1/4
bil1ion~
up to $100,000.
The Treasury will allot in full subscriptions
All other subscriptions will be subject to a
5 percent allotment with a minimum allotment of $100,000 per
subscription.
Although an allotment ratio of 5 percent is
unusually low, the resulting total of about $1.9 billion of
accepted subscriptions will extend well beyond the normal
range of overallotment.
Because the total of accepted eligible
subscriptions will substantially exceed the $1-1/4 billion
originally sought by the Treasury, the Treasury will make no
allotments to Government investment accounts.
Details by Federal Reserve districts as to subscriptions
and allotments will be announced next week.
000
D-883
JIQI
.,t.
&. •• ...........
,..
,.•••. , .... 11. 116).
IIIIIft
or fIUIUIt"
11. 116'
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II
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............ r ....... \0 . . dd ...... 10. 196), -,_ . . . .aw.. - "-11._'
...... at u. re ••n1 II. . . . . . . . _ .,.. 11. ,.' ........ '-'W , . . . . ....
_ tlBn ......., eI
ldll. aad r_ tIOO,ooa,ooo, _ ta........, ., 111 .... ...
f
!lie Me l. of 'III ,_ ........... taJ1 •••
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__ •
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allEall". _ , ..... ., .JOG,GOO
....... til . . . . __ ., fl.J
"
• •••••• ., . . . . . . .
101& 11118_ UPLlID
.
---.
1M
AGGIPID If
1,7GI."'.000
.,lkJ,OOO
N\.~
so.1S••0a0
a.
'tl.-
ft'dooo
I
lI,m.ooo
I
"f.,GOO.
ftftft
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. ". . ._
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Q ...., •
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" ....
,......
~ ...
AAA
~.~.~
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._
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11,",000
......
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torU
I
I
16....000
rr.at....
fI.CiCiO
116,8&1,000'
16,lJO,ooo.
~v.~
..,1_
II8lIYI DISfIlCII.
•",",GOO
.us,ooo.
11,919,000
US, "',000
)2,616.000
n'lllA"
·!··e
.
1""""
n.a,f:rr.oao.
.~ooo
~....
-
roa lJID
'.1
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111 'II" -'111 ..... ,.. at u. ,... pd_ MUS'"
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's
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tIre_ NIl.
1........ 71 l .. ., ).'*. t . tile fl ..... Ml1., ... ).1",.'
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~
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e
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fill .... N1. . . . . _ • • '
•
..... _
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ill
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SM . . . . - ~ S
N1de U. .111. at ..... 1 . . . . . . . ....... peried \0 tM .., at nalw of .... lIa tile
II 7 . ' iIII i t . . . u.. aa. ..... pefted t.a inINl. . .
2&' .0"'''' ...
,,'&elI, "'.
I.
TREASURY DEPARTMENT
~SEA.M. ~p~,
June 17, 1963
sday, June 18, 1963.
RESULTS OF TREASURY I S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for t'-lO series or
iBury bills, one series to be an additional issue of the bills dated March 21, 1963~
the other series to be dated June 20, 1963, which were offered on June 12, were
at the Federal Reserve Banks on June 11. Tenders were inv:l.ted for $1,300,000,,000.
i'hereabouts, of 91-day bills and for $800,000,000, or thereabouts, ot 182-day bills..
details of the two series are as follows:
~ OF ACCEPTED
91-~ Treasur,y bills
l82-~ TreaBlilrY bllls,
IETI'rIVE BIDS:
maturing September 19, 1963
maturing Dec.embel" 19, 1963
Approx .. Equi;~ ••
Approx. Equiv.
Price
•
Annual Rate
Price
Annu.a1. Rate:High
31..0.62%,
99.245 a/
98.'~52
2.987%
LOti
).,086%
98.440.
99.241 3.003%
Average
•
99.242
2.997%
98.442
l-.08!% Y
~ed
·
Y
~
·
Excepting one tender of $300,000
percent of the amount of 91~ bills bid for at the low price ~ accepted
percent of the amount of 182-day bills bid for at the low price was accepted
, TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
•• ApElied For
Applied For
Accepted
Jtrict
Acce2ted
~ton
$ 14,748,000 $ 14,478,000 • $ 20,209,,000 $. 16,309,000
, York
1.,102,382,000
912,731,000 :
1~061,6l3,OOO
645,293,000
lladelphia
12,956,000, .
29,.343,000
13,242,,000
8,242,000
~veland
32,450,000
32,195,000 .."'
12,711,000
18,810:.000
lhmond
12,979,000' t
18,979,000
10, 161,OOOJ
2,761,000
lanta
39,081,000 ::
50,352,000
9,985,000
9,511,000
Icago
126,642,000 :.
235,752,000
hl,98),ooo
104,103,000
i Loui.s
26, 130,. OOCl t.,
32,676,000)
10,575,000
9,075,000
neapolis
8,618,,000
J!4,078,OOO
5,902,000
2.902,000,
Bas City
28, 269, OO(}
26,539,000 -..0
7,835,000
7,150,000
la.s
26,288,000
11,558,000 ...
9,799,000
5,980,000
Francisco
111 2 890,2000
70.z836.!OOO •
85 z820z000
382461 2°00
$2,303,207,000 $1,300,755,000
TOTALS
$1,364,654,000 $800,450,000 Y
.udes $242,683,000 noncompetitive tenders accepted at the average price of 99.242
.udes $60,846,000 noncompetitive tenders accepted at the average price of 28.'~2
coupon issue of the same length and for the same amount invested, the retllrIl on
ase bills would provide yields of 3.06%, for the 9l-day bills, and 3.11%, for the
2-day bills. Interest rates on bills are quoted in terms of bank: discount with the
turn related to the face amount of the bills payable at maturity rather than the
ount invested and their length in actual number of d~s related to a 360-day year.
contrast, yields on certificates, notes, and bonds are computed in terms of
Iterest on the amount invested, and relate the number of days remainin~ in an intereflt
Iyment period to the actuaJ. munber of days in the period, with semiannual compound~ i f more than one coupon period is involved.
e
e
e,
·
sI
8·3~7
I
I
TREASURY DEPARTMENT
June 17, 1963
FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN MAY
During May 1963, 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 $656,202,500.00.
000
D-885
TREASURY DEPARTMENT
June 17, 1963
FOR IMMEDIATE RELEASE
TREASURY MARKEn' TRANSACTIONS IN MAY
During May 1963, market transactions in
direct and guaranteed securities or the government for Treasury investment and other accounts
resulted in net purchases by the Treasury Department of $656,202,500.00.
000
D-885
r-..,.
I
vv
- 17 more important, it
~vill
;;l"catly increase 0pp0l:'tunity for all .:\mcrica"
Finally, and perhaps most important oJ.: all, by stren3thenin::; uur
economy, it {'Jill increase. the abilii.:y of our entire nation to ?rovi(
~:d.J2~
"'
a bette.r and mOl:'e secure 1 U:e :Cor
come.
1
•
tl1lS
•
generatlon
d\ f
;'f'''~
•
an~·6eneratlons
t(
he Pres ident has reduced his fiscal 1;'_ ~J '+I
'since J.:muary)
itself.
:/1 I (.i
.
C
" ~ l'1.on'
requests by some $615 r:'ll.
I
·
f' .
{
Before that) a ful11$lO~ billion :,:.:~
1""'l~
•
trimmed from agency requests.
/
I
!
IiL
,
the :Cin&l .;lr,iulY:::>ls, :::hc onl"
real solution
.J
inc",';
':::3
~or
our re . >n ~
econc:nic
P
/
I
... I" 1
point
will
.'! .'
3ubs~cnti<l:.
but --
the
cS;.S
-.1-
.L.
,
.:"
. . ....;, (
~2 -~
,
,'~ ~
. _r·
_(_-;T'!.
!..',
.'
_"
'.';-:
,
_,
(.. ...
1-
•
....
inCrC~:l3 C...~C
This
.-.....
,
-,
~
",'- I'"
....
~
,.
.'W
-: - • "..
c..;.
... _
J. S
that can help
unrJ
O~
C01..n:- SE' ;;
.- 1, ".
_f .. e
':).,
.. ~,JLt.., n \,...- .. Q.L
.. - '- r.
for Arl'cricnn btl.:; ir:s.
- 15 divisions -- more than tTNice the total increase in manpower since ~hi
Administration tool(
o[~ice ~UCing
~.
the Navy by more tl1an 14'J
.j
ships, reducin3 the Air Force by 14 combat \vings, and so on right
I douh:: it there are many Americans who
dmvn the line.
~v()U Id
[avo!
such a course.
T1e
....
J....
-'- c
-
a
Iv) t.-"
~'
6r
'"
'.
J
.., 1- ,
..
).
(~
'.J
, ;
,
t ~-, :-, ~~ at 1. onal
t~
..
th~:-
the $5.7 billion ,. r2:"
J
Ct-
,
Hut
"
'\
r..l.,
.~~
drastic cut ·:le-:.·:~;Jc, it'~-'::'''::::')-=;11y ::eO'.l::e ")C)S'::"2.:pendl.'_.':--.·
A
>,..
(,\
/ I ....,...'
-:'./..
~out__________.~_~ -.
!!-~
it cannot be
: -.
....' ._'.' _
. . . exY"\0na'';t·,-,··:
-"
L..J
1 06..>
~
hut _., ,- "
::he
Hy
\0.-
1964 bud,:;et
_
t. •
L~
.l.. \...
,..,"' -1,·;
-'-('1- •. ,
'- V
\.,..
-•.;
'-~.,...
1 "T
.Lc.....LJ..~_,/
QL..!_ ..._"-.
U. ." ••
-.
itted into a
'-'" .....
[i~:ed
:nold
either that:
·.c
0_~trC'mely
-
'f'
C'.\ '_
;.1---
,
~
::~.at
-.I
•. '
as:~
;~
-- one of the t ·:L - .•-', .-__p .:>,.. t
ti ::._
It has already been
j
_~
--
"
.~:'
2'.1
~nd hu.;ely -- by t~!C' _··.d·niniS
-14The $4.5 billion increase was in space, defense) and in terQst
Suppose you tried to cut the defense
on the public debt.
$4.5 billion, where would you look first?
budL~t by
Research and development
costs $7.1 billiol1, so you would have to cut that more than :.>1 :1(1l..
Procurement costs $16.4 billion, most of which represents
on contr3cts already
tions.
fa~
alo~~
Therefo~e)b~~0~t
196~
~undej
Cuts he~~ would ~Ave
,.:
but rather in
~cd
p:~F.::nt;:
:
.:
.' .. .J...
'-
L
.... - . ,
'._
>
1. '_
.~. ~~ec
t
~~
-
~.r·1 }_Qt~r
~--.------------
.
. l
we would have
4'x t''("'ndl'
t'.....
...
-
and abroad
strf:tclL
""' l '
..,J\.,.
...
t-
,
r -."" 0
.. ~""'-
0
J
r
~.y
._L. .. , c
....
"
c
L -.: ,.
Th is amcunt
~ '1...~
" 3.
A.. t:::
l: ...
il.J.y
U·i'"'
':l
.! c··it,,;;
,
I
,~I'
I
1)!>-,
- 13 -
To reduce the total fiscal 1964 bud3et to the 1963 level :;c'..:lc
call for cuttin3 defense and space expenditures by $4.5 billio:"!, ,):
cuttin::; a sim-llar .:1ffiount rrom all other pro3rams -- vlhich h.:J.ve
been held below their 1963 level -- or some combination 0.1: the
such c:m arhitrary cut becomes
Conurcss
o
apparcll~ ,~i
consi~e~_
nnn'-incln
,t....
expressed in
•
__
_,,~
..I.
r:lents
years, "
.1.1
;'lhich
1-1-•.
veter .;itlS
catcJ~ry,
T,-,t
~\,,;
~I L':i s
~r~
l'C'
t ......
--
~.,.- r
'_~-.l~
. .I-.
~
-
......
suc~, ~
ions
inherently
'001:
_ _ '"
"t
a.
c~ntr~~~ual
~1)~c;r:;cC'·
.L.L.J,...
"'a
~l:l:.
.1)(~r,0
in
n~ture.
.1J Id
you eu t
--'S-~',1
1('1-,·
d'l.tures b). ,',·t, - ..
- ..
red '.1.----,.
___ 1. L ... ~
,n)-..
e"'jcn
..
y r • . . . -',- ll'on!
>e
r
__ ,
_~
.L
•
the budge'': .'
..1 __')
after
made.
inteJli~~nt
~n1./
H
Jut
C6.
...~.;
).1...
spcnd-t.:hriit orat.v:",-y as this
is hardly
they think cut
e_~~tn~tion>
n'"
V
'" issue .;enerated so much loo.~
-'- t.;:
~-,:c.t;.::er
O~:
expenditur~..,.
Govern.,"11ent
responsibl~]
to ?luck
· ,.
C'-
z.i::c
.
....
..:.- .... -
'-.~
""
,-
~.-; ~-
-
- ...
"
'
1"'
.
•
-
'. c '
'
",1
.'
.:.
-'_
-,
.J..-
"
:-., ,T
'.'---
.J
11
._
1 .._
"'-'--
i.n c r (' Cl~: ,-:: in
on the
.~
C4
c
~..-,
.... ;:,
"1 (; "."
• ..::..
debt.
'. r. 1 "'::,
L .:i •
1
- 11 (J
16 percent.
Thf.se are by no means all the figures one could cf.l:,
but they are cnou&h to make the simple point that we are a growin
nation
~lich
requires growing national services to meet the
nee~5
of its people and of its business and its industry.
n2:~~lectin~
President Kennedy) \.Jithout
control
esse.ntial national nuc,
O\ler
subrni t ted oy
~'.,
.
.
'~'-f;~,:_':~Cl1~ ~
.
-:t1~':~"
the to tc:.l in ,'...
-~
C) \.-:
("">
:..:'
.,.
crease. curLf'.
has
1 i~..Iv
.':.L1 -.
of the.: total
o:Z
I
de~ense)
:·.~ve
1. S:64 :tas been
__ : (»
and
... 1
L
~ 12
~ltercst
.
~\.n
r
71 _ pE
_'.e
a:
on the public "
no qu.;;.rri? 1.\'1 L:1 tho~(' -"110 do scrutini~e the facts ~::G,
Let us look at some of the [acts involved in the issue
of~"
;
'-
'.
One "I.rery elementary point -- which too many chao:;,
turc control:
ignore -- '>'las made by President Eisenho~ver in his 1960 Budget ML~,:
and I quote:
",,8
must not '::or:;et ella::: a rapidly 31:"o'din3 ?opulatiol"'
sibiliti(!~.
'
1"11(" Dire.:
:'I -,. -:--. ., ,".1-
tellinc:'-'
,)
' L .. _
-
en Fed
services:
C Ie
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-8tha t the net tax reduc tion will not be far from the proposed $10.3
billion.
The impact of that overall tax cut will be felt throughout th;
economy faL- faster than most people realize.
If the President's
program were to receive final approval by October 1st,
4IiI
the enti~
I
I~
$10 billion in tax relief would be released into the eC0nomy wity~
following fifteen months.
The ultimate eriect would be several
$10 billion -- as evidenced by the report
ot~·
t~
the Joint Economic Crn·
mittec of the Congress, which estimated that it would eventually
ir~
our annual Gross National Product by as much as $40 billion.
It would be a mistak€', however, to measure the effectivenessot
the overall tax program in dollar terms alone.
For in the final
aOl
what it will mean is more and better job and educational 0Pllortunitl
lor millions of our citi.zens, greater f-rofitability, productivity,
and incentives for business and business investment, and increased
.. 7to last year's tax reforms for at least 43 percent of their lucrea"
capital expenditures.
Reducing business taxes alone, howevE:>r, cannot do the whole j~1
expa~
For we need not only to increase business productivity, but to
and expand dramatically -- the overall tnarkets for business output.
No company will produce more goods, or new goods, without markets to
absorb them.
The best way to assure those markets is to assure that
expan~,
consumer purchasing power expands as our capacity to produce
The President's tax proposals would accomplish this by reducing
J ()
t~~
personal income tax rates from the present range of
1'-/
ql
to
~
6"S
percent to a much lower range of
Such a cut in individual rates, combined with the proposed corporate
rate reduction, would total $13.6 billion.
The rate cuts may, of
course, be somewhat revised in the bill that emerges from the
Ways and Heans Committee.
~ill
But I am coniident
~~.'1
tliC! Ete
not difIer very much from those proposed by the Pres
Hous~
scal~
io.. , ~
II~L-f1
-6-
0hose proposal~ briefly:
j\
The proposed reduction from 52 to 47 percent in the corponu
tax rate -- combined with last year's investment credit and depr~~
reform -- would cut business taxes by a total of $5 billion.
That
total would give business forty percent of the overall tax reduction
provide a strong and continuing stimulus toward accelerated economic
growth, and increase the profitability of new business
investment~
almost thirty percent.
Anyone who is skeptical about the effec t of corporate rate cutl
fi..pon business and economic grmvt.8 should take a hard look at the
results of last year's tax
ClHlll l .:,es.
:\ recent survey of capital spI
by the Commerce Departll.en t and the ..)~curi ties and Exchange Conunissia
estimates that expenditures ~or plant and equipment in 1963 will~
to more than $39 billion from a level of some $37 billion for 1962.
as an earlier McGraw-Hill survey pointed out, businessmen givect~
hI)
- 5 -
v --
JC
Look, for example, at what has happened over the past
/'1 () tJ7HJ
~R£.
"
One year ago, we had a Gross National Product of $552 billion
unemployment rate of
5~
percent.
and.
Yet, while today GNP has risen
~
$580 billion -- $28 billion higher than a year ago -- unemployment b
verging on 6 percent.
To put it another way, we would need an avera,
~
rise in GNP of $14 b i l l i o n . quarter -- beginning now -- to close Q
gap between output and employment by the end of 1964.
ye~
since last
fall, our economy has been growing by only a little more than $8 bill
e<JII*¥ quarter.
At that rate, and assuming that our potential output
grows at its present pace, i t would take us
~~
te~'
to reach oux
interim full employment target of four percent unemployment.
We simply cannot tolerate that kind of delay -- and that is why
President has submitted tax proposals designed to achieve the moren
sustained, and balanced growth we must have.
Let us consider
- 4 I hope last year's rise may be a portent of things to come --
not~
because of the benefits higher exports would bring to you, but
because increased coal exports would be of considerable help in
ea8~
the imbalance in our international payments.
I t is essential that we continue to encourage J.n every American
business the kind of progress that has placed the coal industry
forefront of our march towards greater productivity.
in~
But even asw
do so, we cannot forget that productivity increases can also be
accompanied by less welcome increases in unemployment.
As a nation, therefore, we face the difficult and double challl
of not only sustaining and encouraging the upswing in productivity, ~
at the same time providing the millions of new jobs we will
replace obsolete ones and to absorb our new workers.
A-l
need~
If our econCllf
I:J...
J!n(l
to provide those jobs, it will have to grow considerably faster i:h'
l[s dU"i~ the present upturn.
~
'"
"
Our total output will have to inaell'
by~mOre than the $25 to $30 billion that appears in sight for
1-.
- 3 -
guidelines alone. your industry ~ealizea an e8timat~ $50 ~lli~h
added tax deductionSj and abou~ $20 mirllion li.A actual. after-1ia4t iavii
---
A.. and
Those tax changes of ~aet: yfillJ!
even more the new tax
proposals made by President KennedYI\ will give added impetus to
~e
striking advances in productivity that have made the United States
coal industry one of the most competitive in the world.
It has been
I
estimated, for example, that ~ American mines which produce coal
for export average about 12 tons per man per day -- as compared with
1-1/2 tons per man per day for west German mines.
And some of the III
uni ted States mines produce as much as 40 to 50 tons per man per day,
Unfortunately, the pace-setting productivity increases
thatb~
long been a hall-mark of the American coal industry have not been
consistently reflected in rising coal exports.
Last year, those
,_~ ".~_ ~~-~{.:.t'~~-c~1~--"-~ ;W ~"~fjJexports ~RC.r-easea --by -•• ;,u4* million ~vli~61 -
;/.n"+j
thus r..e_sitlq
tne' dawnWa;d:--ftena-~at: 1\8& ~p8l!!eHted since 1957 wlien, patel} 51 a
result of the Su6% cr~, our eoaI exports soar~ 4io $836
.jJJ1-
-
2 -
recording its figures on a seasonal basis in 1949.
The young people
born in 1946 -- the first year of the postwar baby boom -- have ~~
to enter the labor force.
ingly large numbers.
They will continue to enter i t in increas.
During the mid-sixties, our labor force will
have to absorb an inflow of nearly three million young people each
year, compared to less than two million during the mid-fifties --
an increase of 50 percent.
This prospect alone presents us with a formidable problem. Md
it will be compounded as automation and modernization displace greater
number s of worker s and lessen the demand for unskilled and semi-skille
labor.
As measured by output per manhour i
the productivity of American
business has risen- by more than ten percent over the past two years.
Like other industries, the coal industry has been helped considerably
by the two tax measures of last year -- the investment credit and the
r 7if;> J3...J
-; {~r. ~ //f";- [ j[?;;,-;;;,.
- - --
.c_/
. .-"' -
liberalized guidelines for depreciation .y'~-a-result:tiY:3fi,"he;;o
....
.~---
11--
~A Ilil/[A4 r=
" () N lJE~II/t:(?.Y
REMARK~
BY Tlli.:: HONORABLE DOUGLAS DILLON
~£.CL{ET/\'RY
AT
6/17/63
T.~J~ ~j:,TION,"L
OF THE TREASURY
COi'.L ASSOCIATION CONVENTION
~IOT2L, WASHINGTON, D. C.
JUNE 13, 1963 J 12: 30 P.M. t. .t;.. t'"
h.AYFLC;-lSR
"There cor,les an hour in the life 01 every nation when the gap
between pron,ise and per.rormance must be closed.
Such an hour is
striking now in the field of economic growth.
,:jevera1 months ago, the gap between our economic performance
and our potential was more readily apparent than it is today,
0~
~
~ ,/)..Q.-'>.
I the pace of business activity pickin<:; up, alta the business
ingly bright.
But we cann()t
tha t the current upturn
1.1,
us the mamen tum we need t;)
Last month, more thnc
could not [ind it.
lr~l
uur-
present prospects blind us to thef.
,'C
ooord)'
.:1Cil ieve
J..OUl..'
outlooks~
uUl"
(lU 1ds
0':)<11
out Ii ttle hope of
01:.
giv~
cull employment.
million Americans actively seekinbWl'l
Even more disturbing, unemployment among te,e na6ed
climbed (rom 16 "ercent in
.tJ:il to 18 percent in May.
That was the
highes t jobless figure .cor teenagers since the Labor Departmeat be6'l'
TREASURY DEPARTMENT
Washington
OR RELEASE:
(";7
1.-' .
ON DELIVERY
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT
THE NATIONAL COAL ASSOCIATION CONVENTION
MAYFLOWER HOTEL, WASHINGTON, D. C.
TUESDAY, JUNE 18,1963,12:30 P.M., EDT
There comes an hour in the life of every nation when the gap
etween promise and performance must be closed. Such an hour is
triking now in the field of economic growth.
Several months ago, the gap between our economic performance
nd our potential was more readily apparent than it is today, when
e see the pace of business activity picking up, and the business
utlook seemingly bright. But we cannot let present prospects blind
s to the fact that the current upturn in our economy holds out
ittle hope of giving us the momentum we need to achieve our goal of
ull employment.
Last month, more than four million Americans actively seeking
ork could not find it. Even more disturbing, unemployment among
eenagers climbed from 16 percent in April to 18 percent in May.
hat was the highest jobless figure for teenagers since the Labor
epartment began recording its figures on a seasonal basis in 1949.
h.e young people born in 1946 -- the first year of the postwar baby
oom -- have begun to enter the labor force. They will continue to
~ter it in increasingly large numbers.
During the mid-sixties, our
abor force will have to absorb an inflow of nearly three million
Jung people each year, compared to less than two million during the
~d-fifties -- an increase of 50 percent.
This prospect alone presents us with a formidable problem. And
~ will be compounded as automation and modernization displace greater
Imbers of workers and lessen the demand for unskilled and semi(illed labor.
As measured by output
Isiness has risen by more
ke other industries, the
the two tax measures of
beralized guidelines for
d even more, the new tax
886
per manhour, the productivity of American
than ten percent over the past two years.
coal industry has been helped considerably
last year -- the investment credit and the
depreciation. Those tax changes -proposals made by President Kennedy -- will
- 2 -
hP
v _
ve added impetus to the striking advances in productivity that have
de the United States coal industry one of the most competitive in
e world. It has been estimated, for example, that American mines
ich produce coal for export average about 12 tons per man per.
y -- as compared with 1-1/2 tons per man per day for West German
nes. And some of the newer United States mines produce as much as 40
50 tons per man per day.
Unfortunately, the pace~setting productivity increases that have
ng been a hall-mark of the American coal industry have not been
nsistently reflect~d in rising coal exports. Last year, those
ports increased for the first time since 1957. I hope last year's
se may be a portent of things to come -- not only because of the
nefits higher exports would bring to you, but because increased
al exports would be of considerable help in easing the imbalance
our international payments.
It is essential that we continue to encourage in every American
3iness the kind of progress that has placed the coal industry in the
refront of our march towards great productivity. But even as we
so, we cannot forget that productivity increases can also be
~ompanied by less welcome increases in unemployment.
As a nation, therefore, we face the difficult and double challenge
not only sustaining and encouraging the upswing in productivity, but
the same time providing the millionsof new jobs we will need to
lace obsolete ones and to absorb our new workers. If our economy
to provide those jobs, it will have to grow at a considerably
ter pace than has been the case during the present upturn. Our
al output will have to increase by far more than the $25 to
billion that appears in sight for 1963.
Look, for example, at what has happened over the past 12 months:
year ago, we had a Gross National Product of $552 billion and an
mployment rate of 5-1/2 percent. Yet, while today GNP has risen
$580 billion -- $28 billion higher than a year ago -- unemployment
verging on 6 percent. To put it another way, we would need an
rage rise in GNP of $14 billion a quarter -- beginning now -- to
se the gap between output and employment by the end of 1964. Yet,
ce last fall, our economy has been growing by only a little more
~ $8 billion a quarter.
At that rate, and assuming that our
ential output grows at its present pace, it would take us ten long
rs to reach our interim full employment target of four percent
nployment.
- 3 We simply cannot tolerate that kind of delay -- and that is why
the President has submitted tax proposals designed to achieve the
nore rapid, sustained, and balanced growth we must have. Let us
consider them briefly.
The proposed reduction from 52 to 47 percent in the corporate
tax rate -- combined with last year's investment credit and
1epreciation reform -- would cut business taxes by a total of $5
Jillion. That total would give business forty percent of the overall
tax reduction, provide a strong and continuing stimulus toward
~ccelerated economic growth, and increase the profitability of new
Jusiness investment by almost thirty percent.
Anyone who is skeptical about the effect of corporate rate cuts
;hould take a hard look at the results of last year's tax changes.
\ recent survey of capital spending by the Commerce Department and
:he Securities and Exchange Commission estimates that expenditures
Eor plant and equipment in 1963 will rise to more than $39 billion
crom a level of some $37 billion for 1962. And, as an earlier
1cGraw-Hill survey pointed out, businessmen give credit to last year's
:ax reforms for at least 43 percent of their increased capital
~xpenditures .
Reducing business taxes alone, however, cannot do the whole job.
~or we need not only to increase business productivity, but to
!xpand -- and expand dramatically -- the overall markets for business
,utput. No company will produce more goods, or new goods, without
tarkets to absorb them. The best way to assure those markets is to
!ssure that consumer purchasing power expands as our capacity to
'roduce expands. The President's tax proposals would accomplish
his by reducing personal income tax rates from the present range of
o to 91 percent to a much lower range of 14 to 65 percent. Such a
ut in individual rates, combined with the proposed corporate rate
eduction, would total $13.6 billion. The rate cuts may, of course,
e somewhat revised in the bill that emerges from the House Ways
nd Means Committee. But I am confident that the net tax reduction
ill not be far from the proposed $10.3 billion.
The impact of that overall tax cut will be felt throughout the
conomy far faster than most people realize.
If the President's
rogram were to receive final approval by October 1st, the entire
10 billion in tax relief would be released into the economy within
he following fifteen months. The ultimate effect would be~veral
imes $10 billion -- as evidenced by the report of the Joint Economic
)mmittee of the Congress, which estimated that it would eventually
lcrease our annual Gross National Product by as much as $40 billion.
- 4 It would be a mistake, however, to measure the effectiveness of
:he overall tax program in dollar terms alone. For in the final
Inalysis, what it will mean is more and better job and educational
>pportunities for millions of our citizens, greater profitability)
>roductivity, and incentives for business and business investment,
lnd increased government revenues to provide for our growing
lational needs without risking large deficits.
The question of Federal expenditures and deficits has loomed
large in public discussion of the President's tax proposals.
I would
like to devote some time to it today, for it is a question that has
~oo often been beclouded with misunderstanding.
First of all, let me say that the reason we have had large
jeficits in recent years -- either in this or in preceding
~dministrations
is not because of excessive or unnecessary
3pending by the Federal Government. The real reason is simply that
)ur economy has not been operating at levels high enough to produce
the revenues we need to meet the demands of our rapidly growing
?opulation and the increased costs of defense and space.
Let us look at some of the facts involved in the issue of
=xpenditure control: One very elementary point -- which too many
:hoose to ignore -- was made by President Eisenhower in his 1960
Budget Message, and I quote:
"We must not forget that a rapidly growing
population creates virtually automatic increases in
many Federal responsibilities."
The Director of the Budget, Kermit Gordon has provided some
very telling examples of this population rise and of its impact
)n Federal services:
By the end of fiscal 1964, the budget year
)n which we are now working, there will be 10 million more Americans
than there were the day President Kennedy took office. Between
fiscal years1962 and 1964, the volume of mail will rise by more
than six percent, the number of veterans or survivors receiving
?ensions by 10 percent, beneficiaries under the old-age and
3urvivors insurance program by 16 percent. Those are by no means
311 the figures one could cite, but they are enough to make the
3imple point that we are a growing nation which requires growing
lational services to meet the needs of its people and of its
)usiness and its industry.
- 5 President Kennedy, without neglecting essential national
=ds, has exercised, is exercising, and will continue to exercise
Eirm control over expenditures. Our budget has increased
)idly over the past three years, but fully 70 percent of the
:al increase from 1961 through 1964 has been in the areas of
:ense, space, and the inescapable interest on the public debt.
~n you include the 1964 Budget as submitted by the President,
~n -- apart from defense and space -- the total increase in all
>enditures during the first three years of his Administration will
$800 million less than the similar increase during the preceding
~ee years from 1958 to 1961.
The facts are there for those who are willing to recognize
I have no quarrel with those who do scrutinize the facts and
), after intelligent examination, pinpoint where they think cuts
1 be made.
But seldom has any single issue generated so much
)se and spend-thrift oratory as this matter of Government
)enditures. It is hardly responsible, fiscally or otherwise, to
lck from the blue air -- or from the nostalgic past -- some
)itrary figure and proclaim it as the magic limit expenditures
;t never exceed, or as the exact amount expenditures must be
~m.
.-.
Some who are seriously and honestly concerned with fiscal
:egrity are currently suggesting that fiscal 1964 expenditures
)uld not exceed the fiscal 1963 level. That suggestion, I am
~aid, is completely out of touch with the realities of fiscal
:e and national needs. The truth is that the entire $4.5
_lion budget increase from 1963 to 1964 can be accounted for by
:reases in only three areas -- defense, space, and interest on the
Ilic debt. The total of all other expenditures is being held below
.3 levels.
To reduce the total fiscal 1964 budget to the 1963 level
ld call for cutting defense and space expenditures by $4.5
lion, or cutting a similar amount from all other programs -ch have already been held below their 1963 level -- or some
lbination of the two.
- 6 -
The impracticality of such an arbitrary cut becomes a?parent
~n one realizes that while the Administration presents the budget
j Congress considers it on an annual basis, the programs whose
3t is expressed in th~ budget are in large part continuing programs
lch involve not only plans but connnitments for years ahead. For
~mp1e, over 40 percent of the fiscal 1964 expenditure budget
valves payments from unspent authorizations enacted in previous
~rs, most of which are already obligated.
And there are other
~ms -- such as veterans pensions -- which, while they are in a
newhat different category, are inherently contractual in nature.
Let us look at specifics: Where would you cut the budget to
duce fiscal 1964 expenditures by $4.5 billion?
The $4.5 billion increase was in space, defense, and interest on
public debt. Suppose you tried to cut the defense budget by
.5 billion, where wo~ld you look first? Research and development
sts $7.1 billion, so you would have to cut that more than in half.
Jcurement costs $16.4 billion, most of which represents payments
contracts already far along and funded out of earlier ap?ropriations.
~refore, budget cuts here would have little effect in 1964, but
ther in 1965 or even later. To reduce procurement expenditures in
seal 1964 we would have to severely stretch out programs already
der way and funded by appropriations which have already been made.
~
Expenditures for maintaining our standing defense forces at home
d abroad total $25.9 billion. This amount is funded from the current
aget, so it is here that we must cut if we wish to hold 1964
penditures to 1963 levels. A cut of one-sixth in this area would
Jvide almost $4.5 billion. But it would mean reducing the Army
more than two divisions -- more than twice the total increase
manpower since this Administration took office, reducing the
vy by more than 140 ships, reducing the Air Force by 14 combat
~gs, and so on right down the line.
I doubt if there are many
~ricans who would favor such a course.
The same thing applies to the space budget. Here, the National
sociation of Manufacturers has suggested a cut of $1.4 billion in
~ $5.7 billion of new spending authority requested by the President.
t even if such a drastic cut were made, it would only reduce
tual 1964 expenditures by a little over $500 million.
- 7 -
7?
I
My point is not that the budget cannot be cut, but simply that
It cannot be cut arbitrarily or fitted into a fixed mold such as the
L963 expenditure total. We must not forget either that the fiscal
L964 budget is an extremely tight budget -- one of the tightest
~ver proposed.
It has already been cut -- and hugely -- by the
\d~inistration itself.
Since January, the President has reduced
lis fiscal 1964 requests by some $615 million. Before that, a full
?19 billion was trimmed from agency requests.
In the final analysis, the only real solution for our recent
Large budget deficits is to increase our economic growth to the
Joint where it will produ~e enough revenues to finance, within the
~ontext of a balanced budget, the minimum programs required to meet
)ur national needs at home and abroad. Not only will substantial
:ax reduction in 1963 help generate that growth, but -- as the
>resident has repeatedly pledged -- a large portion of the increased
~evenues that result will be applied toward eliminating the current
leficit.
This is the positive a?proach to the budget issue -- the
that can help us to achieve our potential as a nation, both
.n economic and hUman terms. Prompt and substantial tax reduction
'il1, of course, greatly increase the potential for American business.
:ven more important, it will greatly increase opportunity for all
.mericans. Finally, and perhaps most important of all, by
trengthening our economy, it will increase the ability of our
ntire nation to provide a better and more secure life for this
;eneration and the generations to come.
~proach
000
- 3 -
and exchange tenders will receive equo..l treatment.
Cash adjustments will 'be iliad!
for differences bet,reen the pa.r value of maturing bills accepted in exchange and
the
is~ue
price of the new bills.
The income derived from Treasury bills, whether interest or gain from the All
or other disposition of the bills, does not have any exemption, as such, and lost
from the Dale or other disposition of Treasury bills does not have any
treotm-:;nt, as such, under the Internal Revenue Code of 1954.
speci~
The bills are subject
to estnte, inheritance, gift or other excise taxes, whether Federal or state, but
a.re exempt from all taxation now or hereaf'ter imposed on the principal or intererl
thereof by any state, or any of the possessions of the United sta.tes, or by any
local taxing a.uthority.
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 1951
the amount of discount at which bills issued hereunder are sold is not
consl~~
to accrue until such bills are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as ca.pital assets.
Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need
(D.
clude in his income tax return only the difference between the price paid for sri
bills, whether on original issue or on subsequent purchase, and the amount actd
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 (current revision) and this notice, ptt
scribe the tenns of the Treasury bills and govern the conditions of thelr.1ssut.
Copies of the circular may be obtained from any Federal Reserve Bank or
:arancb•
lmals, e. g., 99.925.
~
J.Pra.ctions
not be used.
It is urged that tenders
na.de on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Banking instItutions generally may submit tenders for account of customers
7ided the names 01' the customers are set forth in such tenders.
Others than
ting institutions will not be permitted to .submit tenders except for their
account.
Tenders will be received without deposit from incorporated banks
trust companies and from responsible and recognized dealers in investment
lrities.
Tenders from others must be accompanied by payment of 2 percent of
face amount of Treasury bills applied for, unless the tenders are accompanied
express guaranty of payment by an incorporated bank or trust company.
LD
Dmned.1ately atter the closing hour, tenders will be opened at the Federal
!rve Banks and Branches, following which public announcement will be made by
Treasury Department of the amount and price range of accepted bids.
Those
d tting tenders will be advised of the acceptance or rejection thereof'.
The
oetary of the Treasury expressly reserves the right to accept or reject any
I I tenders, in whole or in part, and his action in any such respect sh8J.l be
~.
·subject to these rese~tions, noncompetitive tenders for $ 2tfif00 or
for the additional. bills dated
until maturity date on
10 000 or less for the
~
March 21, 1965
414
,(
91
tid
days remain-
September 26, 1963 ) and noncompetitive tenders for
182
un
-day bills without stated price from anyone
XWi
er will be accepted in tu.11 at the average price (in three decimals) ot ac!d competitive bids tor the respective issues.
Settlement tor accepted ten-
in accordance with the bids must be made or completed at the Federal Reserve
!I
on
June 27, 19.3
PiJ
, in cash or other immediately available fUnds or
like face amount of Treasury bills maturing
_..-.;J;.;un;;;;;;.;e~ifiJ~7~_19.;..6.;..3____ •
Cash
:xDD:1JO:MDIIX t*'
TREASURY DEPARTMENT
Washington
June 19, 1963
FOR IMMEDIATE RELEASE,
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two aer1:1
of Treasury bills to the aggregate amount of $ 2.100tii0'Ooo , or
cash and in exchange for Treasury bills maturing
thereabout8,~
June 2ii:t1963
,in the _
of $ 2,102tiiF,OOO , as follows:
91
iii
-day
bills (to maturity date) to be issued
in the amount of $
1,30~,OOO
June 27, 1963
------~X¥ii~~--------
,
, or thereabouts, represent-
ing an additional amount of bills dated March 2iit1963
and to mature
sept~r
amount of $ 8oo'iihoOO
26. 196i,originally issued in the
,the additional and original bills
to be freely interchangeable,
~-daY
bills, for $
June
2~963
800,~OOO
,or thereabouts, to be dated
, and to mature
Decembertiit 1963
The bills of both series will be issued on a discount basis under competitb!
and noncompetitive bidding as hereinafter provided, and at maturity their
amount will be payable without interest.
f~e
They will be issued in bearer :rom oDlJ
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,OOOud
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Bs.nks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Easter; ~ time,
Monday. June 24:,
1._
:amEaCh teJlll'
Tenders will not be received at the Treasury Department, Washington.
must be for an even multiple of $1,000, and in the case of competitive tendel'l tit
price offered must be expressed on the basis of 100, with not more than
t~
TREASURY DEPARTMENT
•
-
7
June 19, 1963
POR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
ror two series of Treasury bills to the aggregate amount of
~ 2,100,000 000 or thereabouts, for cash and in exchange for
rreasury bi 1Is maturing June 27, 1963
in the amount of
~ 2 ,102 ,416 ,000
as follows:
91 -day bills (to maturity date) to be issued
1n the amount of $ 1,300,000,000 or thereabouts,
additional amount of bills dated March 28, 1963
nature September 26, 19630riginally issued in the
,~ 800,046,000
the additional and original bills
lnterchangeable.
June 27, 1963
representing an
and to
amount of
to be freely
182 -day bills, for $ 800,000,000
or thereabouts, to be dated
une 27, 1963
and to mature December 26, 1963.
The bills of both series will be issued on a discount basis under
!ompetitive and noncompetitive bidding as hereinafter provided, and at
~aturity their face amount will be payable without interest.
They
lill be issued in bearer form only, and in denominations of $1,000,
;5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,.000
rmaturity value).
Tenders will be received at Federal Reserve Banks and Branches
lP to the closing hour, one·-thirty p.m.,
Eastern Daylight Saving
;ime, Monday, June 24, 1963.
Tenders will not be
~eceived at the Treasury Department, Washington.
Each tender must
Ie for an even multiple of $1,000, and in the case of competitive
~,enders the price offered must be expressed on the basis of 100,
'ith not more than three decimals, e. g., 99.925. Fractions may not
,e used. It is urged that tenders be made on the printed forms and
orwarded in the special envelopes which will be supplied by Federal
~eserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
ustomers provided the names of the customers are set forth in such
lenders. Others than banking institutions will not be permitted to
;ubmit tenders except for their own account. Tenders .will be received
iithout deposit from incorporated banks and trust companies and from
esponsible and recognized dealers in investment securities. Tenders
,rom others mus.t be accompanied by payment of 2 percent of the face
mount of Treasury bills applied for, unless the tenders are
,ccompanied by an express guaranty of payment by an incorporated bank
'r trust company.
0-887
- 2 -
Inwediately 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 $ 200,00ilir less for the additional bills dated
March 28, 1963
(91 days remaining until maturit¥ date on
September 26, 1963)and noncompetitive tenders for ~ 100,000
or less for the 182-day bills without stated price from anyone
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 Banks on June 27, 1963
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing June 27, 1963.
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. AccordinglYI 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 dur:lng the taxable year for which the
return 1s made, as ordinary gain o:r loss.
Treasury Department Circular No. 418 (current revision) and thiS
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fr:"
any Federal Reserve Bank or Branch.
000
!be Treuur:f Dapartlaent today announced the IlUbaertpt10a aDd ~
~ v1th reeptlC't to the current oN'er1Dg ot ,~ 'l'nal\l!'y - . . of 1110,
cbae ~ 15, 1910.
S\1bMr1pl1ou tor ~OO,OOO or lea. vere ~ed in Ml . . u.. for
.,re tbul $100,000 WN allotte.:l 5 percent but not leu thaD $100,000.
&1becr1J*loae and a1l..crbr.entB wel'E divided 8lI0II& the M"fftal. hIIIala..
Dinriata &lid tbe Treasury aD t'ollows:
Mrve
Federal Re..ne
DJ.aUi~
Total Subscriptiona _Received
A.l.lotPIlU
I,.
$
~
Boatcm
.." York
Pb11 • •]pda
985,116 ,000
CleftlM4
Ric _ _
511,178,500
752,352,500
AUuIta
2,332,814.,000
4131 ~610,OOO
330,967,000
;:)99,979 , 500
531,3Oof.,SOO
Z,935,657 ,500
CbS_SO
a.. Louis
Mt_IQOl1.
Ken•• C1Q
Dtl1. .
san
Franc1eco
Traeury
~
902,377,500
5,563,732,500
525,975,500
'J.bt&l.
18,"1,500
472,673,500
68,5&0,000
l24a,4.90 ,000
83,108,100
l54,851,500
50l ,W,(X)()
107,",000
17,&50,100
127,.017,000
&8,H8,1OO
198,181,100
16~.309
_. __
- :..I 500
1,,811.g
~16,261,914,500
$l.~,S1J ,000
-
TREASURY DEPARTMENT
7Qv
I
June 19, 1965
SUBSCRIPTION AND ALLOTMllliT FIGUHill FOR THEA!JUHY' S CUHRE:NT CASH OYfl'J<l Wi
The Treasury Department today announced the subscriptioll and. allotment
figures with respect to the current offering of 4~ Treasury Bonds of 1970,
due August 15, 1970.
Subscriptions for $100,000 or less were allotted in full and those for
more than $100,000 were allotted 5 percent but not less than $100,000.
Subscriptions and allotments were divided among the several Federal Heserve Districts and the Treasury as follows:
Federal Reserve
District
Total Subscriptions Received
Total
Allotments
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
$
$
Total
D-B8R
902,377,500
5,563,732,500
525,975,500
985,716,000
511,178,500
752,352,500
2,332,874,000
467,610,000
330,967,000
399,879,500
537,304,500
2,935,637,500
16,309,500
$16,261,914,500
98,391,500
472,473,500
68,540,000
124,490,000
83,708,500
154,851,500
301,144,000
107,695,000
77,650,500
127,017,000
88,938,500
198,781,500
1,891 , 500
$1,905,573,000
Increase in
reve~ue
resulting from extension of present excise tax rates
(In millions of dollars)
Effect on net budget :~crease
:receipts1 fiscal year 19t;:
in
:Increase:Decrease:
:revcnue,
in
i n : Total: full
year
:receipts:refunds
Rate reduction scheduled
as of July 1, 1963
under present 1a~
Alcohol:
Distilled spirits .••••••.••••••.••••••. $10.50 to $9.00 per gallon
Beer ••••.•••.•.•.•••••••••••••••••••••• $9.00 to $8.00 per barrel
Wines •••••••••••••••••••••••••••••••••• Various
Total alcohol
t~xes
190
83
y
138
9
9
••••••••••••••••
Tobacco:
Cigarettes (s:nsJJ.) ••••••••••••••••••••• $4.00 to $3.50 per thousand
Ma..'1ufacturers excise taxes:
Passenger automobiles •.••••••••.•••.... 10% to 7% of mfrs. price
Parts and accessories for automobiles •• 8% to 5% of mfrs. price
Total mamll'acturers excise taxes •••
Miscellaneous excise taxes:
General telephone service •••••••••••••• 10% to 0
Transportation of persons by air ••••••• 5% to 0
Total miscellaneous excise taxes •••
328
193
92
84
14
9
4-34- - 250
5
282
152
241
24
265
246
380
68
448
50
430
68
498
460
82
542
430
86
51b
570
50
430
86
51b
226
1,487-
Total ...•••••••••••••.•••.••••••••••••.•.
1,713
Ws75
1,7 49
Office of the Secretary of the Treasury, Office of Tax Analysis
1/ Sparkling wines (champagne)
••••••••••••••••••••••••••••••••••••••••
- Artificially carbonated wines
••••••••••••••••••••••••••••••••••••••••
Still wine s :
Not more than 14i alcohol ••••••••••••••.•••••••••••••••••••.•••••••••
More than ~4~, not over 2~~ alcoho~ .•.•.••.•••.••••••.••••.••••••••••
$3.40 to $3.00 per gallon
$2.40 to $2.00 per gallon
17 cents to 15 cents per gallon
67 cents to 60 cents per gallon
$2.25 to $2.00 per ga1lon
More th~~ 2~~~ not over 24~ alcoho~ ••••••••••••••••••••••••••••••••••
More than 24~ alcoho~
'-l~T""--"
-,~'\
:\"'\.t::l.'.l.r"-'-l.rs.
•• ,
...
_"
..
~.o..
.. ~ • •
$10.50 to $9.00 per gallon
••••••••.••••••••••••••••••.•.••••••••••••••••••
ce>"Td"1.e...:L.s
1I.'-._'\'I' .. _
'Prc>d.~cf2'd.
"::11.~
dot:n.es"t:i.ca..:::L..:l....y
~""'\_"--....:Jo't ... "--...,..",,,\
(ct.r--..
:l-"t.".~:>.
conta.in:Lng
~:f'"
r-_<--1:_1
o"Ver
r:lC"_- .....
t_1c-"r.
2:£~
"\..r"iTle,
t.L-.:JooC)
;f>."}
_cx.
t
....
!f'.11
_~:.,>
.... _,
-7It was l:ope-' that maintenance of the tax until June 30,
1963, woulc: 11ave provided the Congress with an opportWlity
t,,)
revie"" the user charge proposals this year while the moat
iLiportant revenue component, the tax on air passenger
portation, was still in effect.
However I
uan.-
the extensive work
being done by the House Jays and Heans Committee on the Preli.
dent's incoTI1e tax recluction and reform program necesBarily
has been given priority.
on transportation of
The one-year extension of the tax
pf~rsons
as proposed by H. R. 6755 will
provide the desired continuity in this tax.
-6-
The President's proposed revision of the corporate
rau
structure is part of the overall income tax program now being
considered by the House Ways and Means Committee.
Since thu.
ie no possibility of enactment of this larger program by July I,
it is necessary to take some action to prevent the pre.ently
scheduled corporate tax reduction from going into effect
II
of
H. R. 6755 proposes to meet this situation by amendin9
July 1.
I
present law to postpone the scheduled reduction for another YIIlI
I
believe that this is the Simplest way to take care of thil
problem •
.AS
you will remember, the President reconunended that the
tax on air passenger trnnsportation be made permanent, inst.ad
of merely extended, as in the case of the other exci.e rate.
coverec1 in this bill.
T'lle President's recommendation in thi.
con.nection \-lo,S part of a larger reconunendation covering
charge prcqrare for tl-lE' airways and waterways.
I uur
The president
also !l~a(1e these' user charge proposals last year ~ but the congrtf
:--liCi not ta~~(; any action t.)n them except with respect to trantpoP
tation of persons 'by air.
~or
rer-,(-::a:
of:' the t.O..x
~~3
Even in that case, provision
Wi....
of -this June 30.
this June 30.
-5l
ro[T'
ta"r
th~.?
President's recormnendation to reduce the corporation
to 47 p""rcent.
While the pre8ent law nrovides for eeduction of the
cor~orRtion
income tax to 47 nercent through reduction of the
normal rate from 30 to 25 percent, the automatic reduction
,-'ould differ si ?;nificantly from the reduction proposed by
the President.
The President's recommendation would maintain
the 52 percent corporation tay rate for the calendar year
1963 but would reverc;e the normal and surtax rates.
The l)resent
normal tax of 30 percent aoplicable to the first $25,000 of
t:n~able
cOl"Tlorate income would be reduced to 22 percent, and
the surta'{ anplicable to income in ev:cess of $25,000 would be
increased from 22 percent to 30 percent.
This reversal would
reduce fiscal 1964 revenues by only $400 million and would
~b·
st8ntia1ly ease the burden on hundreds of thousands of small
businesses which form the
'"Ll:.]O
sub--:e(luent
chan~es
ba~e
of our free "enterT'rise system.
would be made in the surtav: rate.
It
'"ould droT"! to 28 nercent for the calendar year 1964 and then
to 25 nercent for the cal~dar year 1965.
When fully effective,
the President's t"roposal 'vould reduce the corporate ta:Y liabW·
t:>:-S!::"i"
~?;~ ~)U lion at leve1 s of income estimated for calendar
ulendar year 1963.
-4-
Hore than a decade has passed since the so-called temporary
Korean taxes were imposed.
Changes have occurred since 1951
in the economic factors affecting industries subject to excises, many of which are world War II tax.s not ac::heduled for
automatic reduction.
Our review led us to the conelusion that
future excise reductions should be made only in the light of
an up-to-date evaluation of the entire excise tax system.
Since the president has emphasized the importance of
income tax reduction plus the need for retaining a reasonable
limit on the total amount of tax reduction, I should like to
indicate the relationship between the amount of the automatic
excise tax reductions and the president's income tax reduction
proposals.
The $1.7 billion of automatic excise reduction.
equals nearly 17 percent of the $10.3 billion of income
reduction contemplated upon full implementation
program.
d?
~
the pr •• idl
Total income tax reductions could be only five-.~
as large as recommended if the automatic excise tax reductiODI
were allowed to take place.
The $1.7 billion is evenmor.
significant if related only to the President's recommendlU~
with respect to the corporation income tax.
The $1.7 billi~
eauals nearly two-u1irds of the revenue 10S8 that would r.~t
that would r.lUlt
-3-
The president recommended continuation of present
excise tax rates for another year even though he also
recommended substantial reductions in income tax.s over
the next three years.
Before the president offered th•••
recommendations, a thorough review of the various components of our Federal tax system was undertaken.
The review
was made in order to determine where reduction. might molt
appropriately be made to stimulate the growth of our economic system and to determine what changes might a1.0 increase the overall equity of the tax system.
Aa a result
of this analysis, the President decided that -.hese objectiv••
would best be met by giving priority to adjustments in
~.
scope of the income taxes and through significant reduction.
in present income tax rates.
Admittedly, it would be polilbl.
to make reductions in excise taxes which would improve
excise tax system.
~.
HO'Never, the review concluded that in-
come tax revision should receive first priority.
I might add that this review of the excise tax sy.te
also led us to the conclusion that the excises under consideration now are not necessarily those that should have
first priority in a reform or reduction of excise tax.'.
of excise taxe ••
-2t1,;1t
is, from 8 cents to 7 cents a package.
manufacturer~'
The tax on
sales of passenger automobiles would mop
from 10 percent to 7 percent.
For automobile part., the
recuction would be from 8 percent to 5 percent.
cises are scheduled to be repealeds
TWo ex-
the 10 percent tax
on general (local) telephone service and the 5 percent
tax on amounts paid for transportation of persona by air.
Retention of these excise taxes at present rate. for
another year will prevent an estimated revenue lo.s of $1.7
billion in fiscal 1964.
would be $434 million.
The loss from alcoholic
bev.ra9~
The cigarette tax reduction would
reduce revenues by $265 million, and reductions for pal'lnqer
automobiles and automobile parts would cost $498 million.
Repeal of the ta.."{ on general telephone service would curtail
revenues by $430 r.1illion, while repeal of the tax on tro.portation of persons by air would cost $86 million.
Further details on excise revenue loas.a and rate
changes are shrn·,;n in the attached table.
The schecluleci. reduction in the corporate normal tax
would reduce fiscal 1964 revenues by $1.2 billionJ on a
f\lll-year basis the reduction would be $2.5 biiblion.
be $2.5 billion.
OF 'rfIF HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
;-:'l'\.'j'!X!F:~;rr
BEFORE THE
SENATE COMMITTEE ON FINANCE
ON
H.
1\.
6755, THE TAX RATE EXTENSION ACT OF 1963,
ON JUNE 20, 1963, 10:00 A.M., EDT.
H. R. 6755 extends for another year certain taxes which
0therwise would automatically expire or be reduced on July 1
of this year.
These rate extensions are in accord with the
recommendations of the president in his Budget Message ot
January 17.
Taxes covered by the bill are the corporation income tax
an~
certain excises.
The excises are those on alcoholic
bw~
ages, cigarettes, passenger automobiles, parts and acce'lorill
for automobiles, general (local) telephone service, and
u~t
portation of persons by air.
Under present law I
the corporation normal tax rate would
be reduced from 30 percent to 25 percent.
The tax on diltill~
spirits would be lowered from $10.50 to $9 a gallon and
beer from $9 to $8 a barrel.
the taxes on wines.
~atl
Minor decreases would be ~deu
Cigarettes \llould benefit from a tax r.doC'
tion to ~ 3.50 per thousand as compared to the present $4 raU,
present $4 raU,
87
STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE
SENATE COMMITTEE ON FINANCE
ON
H. R. 6755, THE TAX RATE EXTENSION ACT OF 1963,
ON JUNE 20, 1963, 10:00 A.M., EDT.
H. R. 6755 extends for another year certain taxes which
otherwise would automatically expire or be reduced on July 1
of this year.
These rate extensions are in accord with the
recommendations of the President in his Budget Message of
January 17.
Taxes covered by the bill are the corporation income tax
and certain excises
e
The excises are those on alcoholic bever-
ages, cigarettes, passenger automobiles, parts and accessories
for automobiles, general (local) telephone service, and transportation of persons by aira
Under present law, the corporation normal tax rate would
be reduced from 30 percent to 25 percent.
The tax on distilled
spirits would be lowered from $10.50 to $9 a gallon and that on
beer from $9 to $8 a barrel.
the taxes on wines.
Minor decreases would be made in
Cigarettes would benefit from a tax reduc-
tion to $3.50 per thousand as compared to the present $4 rate,
D-889
-2that is, from 8 cents to 7 cents a package.
The tax on
manufacturers' sales of passenger automobiles would drop
from 10 percent to 7 percent.
For automobile parts, the
reduction would be from 8 percent to 5 percent.
cises are scheduled to be repealed:
Two ex-
the 10 percent tax
on general (local) telephone service and the 5 percent
tax on amounts paid for transportation of persons by air.
Retention of these excise taxes at present rates for
another year will prevent an estimated revenue loss of $1.7
billion in fiscal 1964.
would be $434 million.
The loss from alcoholic beverages
The cigarette tax reduction would
reduce revenues by $265 million, and reductions for passenger
automobiles and automobile parts would cost $498 million.
Repeal of the tax on general telephone service would curtail
revenues by $430 million, while repeal of the tax on transportation of persons by air would cost $86 million.
Further details on excise revenue losses and rate
changes are shown in the attached table.
The scheduled reduction in the corporate normal tax
would reduce fiscal 1964 revenues by $1.2 billion; on a
full-year basis the reduction would be $2.5 billion.
-3The President recommended continuation of present
excise tax rates for another year even though he also
recommended substantial reductions in income taxes over
the next three years.
Before the President offered these
recommendations, a thorough review of the various components of our Federal tax system was undertaken.
The review
was made in order to determine where reductions might most
appropriately be made to stimulate the growth of our economic system and to determine what changes might also increase the overall equity of the tax system.
As a result
of this analysis, the President decided that these objectives
would best be met by giving priority to adjustments in the
scope of the income taxes and through significant reductions
in present income tax rates.
Admittedly, it would be possible
to make reductions in excise taxes which would improve the
excise tax system.
However, the review concluded that in-
come tax revision should receive first priority.
I might add that this review of the excise tax system
also led us to the conclusion that the excises under consideration now are not necessarily those that should have
first priority in a reform or reduction of excise taxes.
Q
,-I
vv
-4More than a decade has passed since the so-called temporary
Korean taxes were imposed
o
Changes have occurred since 1951
in the economic factors affecting industries subject to excises, many of which are World War II taxes not scheduled for
automatic reduction e
Our review led us to the conclusion that
future excise reductions should be made only in the light of
an up-to-date evaluation of the entire excise tax system.
Since the President has emphasized the importance of
income tax reduction plus the need for retaining a reasonable
limit on the total amount of tax reduction, I should like to
indica"te the relationship between the amount of the automatic
excise tax reductions and the President's income tax reduction
proposals.
The $1.7 billion of automatic excise reductions
equals nearly 17 percent of the $10.3 billion of income tax
reduction contemplated upon full implementation of the President's
program.
Total income tax reductions could be only five-sixths
as large as recommended if the automatic excise tax reductions
were allowed to take place.
The $1.7 billion is even more
significant if related only to the President's recommendation
with respect to the corporation income tax.
The $1.7 billion
equals nearly two-thirds of the revenue loss that would result
from the President's recommendation to reduce the corporation
~ax
to 47 percent.
While the present law provides for reduction of the
~orporation
income tax to 47 percent through reduction of the
10rmal rate from 30 to 25 percent, the automatic reduction
~ould
differ significantly from the reduction proposed by
:he President.
The President's recommendation would maintain
:he 52 percent corporation tax rate for the calendar year
_963 but would reverse the normal and surtax rates.
The present
lormal tax of 30 percent applicable to the first $25,000 of
:axable corporate income would be reduced to 22 percent, and
he surtax applicable to income in excess of $25,000 would be
ncreased from 22 percent to 30 percent.
This reversal would
educe fiscal 1964 revenues by only $400 million and would subtantial1y ease the burd.en on hundreds of thousands of small
usinesses which form the base of our free enterprise system.
wo subsequent changes would be made in the surtax rate.
It
ould drop to 28 percent for the calendar year 1964 and then
J
25 percent for the calendar year 1965.
When fully effective,
1e President's proposal would reduce the corporate tax liabiliLes by $2.6 billion at levels of income estimated for calendar
~ar
1963.
-6The President's proposed revision of the corporate rate
structure is part of the overall income tax program now being
considered by the House Ways and Means
Co~mittee.
Since there
is no possibility of enactment of this larger program by July I,
it is necessary to take some action to prevent the presently
scheduled corporate tax reduction from going into effect as of
July Ie
He R. 6755 proposes to meet this situation by amending
present law to postpone the scheduled reduction for another year.
I believe that this is the simplest way to take care of this
problem.
As you will remember, the President recommended that the
tax on air passenger transportation be made permanent, instead
of merely extended, as in the case of the other excise rates
covered in this bill.
The President's recommendation in this
connection was part of a larger recommendation covering a user
charge program for the airways and waterways.
The President
also made these user charge proposals last year, but the Congress
did not take any action on them except with respect to transportation of persons by air.
Even in that case, provision was made
for repeal of the tax as of this June 30e
-7It was hoped that maintenance of the tax until June 30,
1963, would have provided the Congress with an opportunity
to review the user charge proposals this year while the most
important revenue component, the tax on air passenger transportation, was still in effect.
Ho~ever,
the extensive work
being done by the House Ways and Means Committee on the President's income tax reduction and reform program necessarily
has been given priority.
The one-year extension of the tax
on transportation of persons as proposed by H. R. 6755 will
provide the desired continuity in this tax.
(In millions of dollars)
Rate reduction scheduled
as of July 1, 1963
under present 1av
Alcohol:
Distilled spirits •••••••••••••••••••••• $10.50 to $9.00 per gallon
Beer ••••••••••••••••••••••••••••••••••• $9.00 to $8.00 per barrel
Wines .•.•..•.••....•...•..•..••....•.•• Various
Total alcohol taxes ••••••••••••••••
1:1
Tobacco:
Cigarettes (small) ••••••••••••••••••••• $4.00 to $3.50 per thousand
Ma.."1ufacturers excise taxes:
Passenger automobiles •.••••••••••.•••.• 10% to 7% of mfrs. price
Parts and accessories for automobiles •• 8% to 5% of mfrs. price
Total ma.."1ai'acturers excise taxes •••
Miscella.."1eous excise taxes:
General telephone service •••••••••••••• 10% to 0
Transportation of persons by air ••••••• 5% to 0
Total miscellaneous excise taxes •••
Total ..
GO
0
••••••••••••••••••••••••••••
'"
•••
:
Effect on net budget :lncrease
:receip"ts, fiscal year 196+:
in
:Increase:Decrease:
:revenue,
:
in
:
in
: Total: full
year
:receipts:refunds
190
83
282
152
328
92
14
434
241
24
265
246
380
68
50
430
68
460
82
542
430
86
51b
570
9
448
138
9
5
50
430
86
51b
1,487
226
498
1,713
193
84
9
20b
~
75
1,749
Office of the Secretary of the Treasury, Office of Tax Analysis
1/ Suarkling vines (champagne) ••••••••••••••••••••••••••.••••••••••••••••• $3.40 to $3.00 per gallon
- A;tificially carbonated wines •••••••••••••••••••••••••••••••••••••••••. $2.40 to $2.00 per gallon
Still wines:
Not more tha.."1 14% alcohol •••••••••••••••••••••••••••••••••••••••••••• 17 cents to 15 cents per gallon
More than 14%, not over 21% alcohol •••••••••••••••••••••••••••••••••• 67 cents to 60 cents per gallon
More tha"1 21%, not over 24% alcohol •••••••••••••••••••••••••••••••••• $2.25 to $2.00 per gallon
More tha.."1 24% alcohol •••.•••••••••••••••••••••••••.•••••••••••••••••• $10.50 to $9.00 per gallon
(I)
Wine liqueurs or cordials produced domestically containing over 2~ vine,
..;~~
vhich ~ine contains over 14% alcohol (in lieu of rectification tax) •• $1.92 to $1.60 per ~allon
TREASURY DEPARTMENT
FOR IMMEDIATE REIEASE
TREASURY DECISION ON STEEL WIRE MESH
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that steel wire mesh
from France 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 determination will be published in
the Federal Register.
The dollar value of imports of the involved merchandise
received during 1962 was approximately $300,000.
rREASURY DEPARTMENT
FOR IHHEDIATE RELEASE
TREASURY DECISION ON STEEL HIRE MESH
UNDER THE ANTID~WING ACT
The Treasury Department has determined that steel wire mesh
from France is nat 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 determination will be published in
the Federal Register.
The dollar value of imports of the involved merchandise
received during 1962 was approximatelY $300,000.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
TREASURY DEPARTMENT
June 20, 1963
FOR IMMEDIATE REIEASE
TREASURY DECISION ON PLASTIC BADMINTON SHUTTLECOCKS
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that plastic badminton shuttlecocks from the United Kingdom are 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 deter-
mination will be published in the Federal Register.
The dollar value of imports of the involved merchandise
received during 1962 was approximately $150,000.
OQ
,,",v
TREASURY DEPARTMENT
June 20, 1963
FOR IMMEDIATE REIEASE
TREASURY DECISION ON PLASTIC BADMINTON SlruTTLECOCKS
UNDER THE AN'fIDUMPING ACT
The Treasury Department has determined that plastic badminton shuttlecocks from the United Kingdom are not being, nor
likelY to be, sold in the United States at less than fair value
wi thin the meaning of the Antidumping Act.
Notice of the deter-
mination will be published in the Federal Register.
The dollar value of imports of the involved merchandise
received during 1962 was approximatelY $150,000.
- 5 We cannot afford to relax any of our efforts to improve the balance of
An you well know I our overall international p~ents deficit
payments.
rose to $3.5 billion in 1958 and was followed by deficits of $3.7 billion
in 1959 and $3.9 billion in 1960.
These payments deficits were aCcanpanied
by substantial drains on our gold stock, amounting to $4.7 billion for the
three year period 1958 - 60.
The deficit was reduced to $2.4 billion in 1961, and in 1962 amounted
to $2.2 billion.
Gold losses were $857 million in 1961 and $890 million
Vfu:ile there are signs that our payments deficit can be expected
in 1962.
to improve over the long run, 1963 will be another year of deficit with
further gold looses.
In these circumstances I we must seek out and apply
even more vigorously measures specifically aimed at restoring equilibrium
in our international accounts.
We carmot afford to relax any of our efforts,
Since the reduction in the duty exemption for tourists has
effect1v~
contributed to improving our balance of PflSIlIlents and since the overall
deficit still continues I I most strongly urge that the $100 limit be
continued
0
Finally, I 'WOuld like to pOint. out one minor change in
as canpared to prese..'1t law.
H. R. 6791
Present law provides a special $200 exemption
for imports fram the Virgin Islands
0
Ho R. 6791 cx"tends this exemption
to our other insular possessions, Guam» American Samoa l1 Wake Island,
Midway Islands, Kineman Reef and Johnston Island
Q
This privilege had
been requested by the Speaker of the Guam Legislature I and it is not
thought that this extension would have any appreciable effect on
payments picture.
our
Accordingly I the Treasury accepts and supports tb1B
change in the present legislation.
- 4 -
But this is by no means the wole story.
Since 1961 the Defense
Department has been engaged in a vigorous attempt to hold down defense
expenditures overseas affecting our balance of payments.
They have done
this through a voluntar,y expenditure control program, in which all
service men and their dependent I otationod overseas are urged to ourtail unnecessary expenditures.
They have also sharply cut construction
outlays overseas and have effectively eliminated construction for
recreational purposes whether paid for through appropriated or
priated funds.
nonapp~
The Secretary of Defense estimates, and I concur in hi,
view, that this program is saving us a at least $100 mill ion a year.
Even with the present $100 tourist exemption this Defense
Department
p~ogrAm
hA§
for the armed services.
&t times
cr~at@d
or a mora1~
somethifig
problem
Servicemen tend to think they are being asked
to carry an unfair share of the burden in reducing dollar expenditures
abroad as compared to oivilian tourists&
If the $100 figure were not
continued this morale problem would undoubtedly be aggravated.
It
would become difficult if not impossible to continue the present defen.e
programs.
With this in mind one can see that the $100 exemption, in
addition to its direct saving of over $100 million a year, carries with
it an equivalent saving in the military expenditure area li or a total
savi.ng of upwards of $200 million
&I.
year to our balance
or
payments.
I
Since we have found this measure to be a useful tool in the progl'lll
of actions taken to reduce the deficit I I believe its continuation tor
another tw ;years as a component part of that program is most important.
- J tours or other forms of spending, nor is there any indication that
the reduced exemption has reduced travel.
Average expenditure per overseas tourist increased fran $484 in
1952 to $612 in 1960.
It decreased to $604 in 1961 and to $576 in 1962.
Cll the other hand, in the absence of the 1961 legislation, past
experience indicates that the annual increase in per capita tourist
expenditures would have continued.
If the 1952 - 1960 rate of increase had been allowed to continue
through 1962, the 1962 figure would have been ~49, \'tlich is
than the actual 1962 figure of $576.
flJ larger
This indicates an overall reducticm
of $129 million in 1962 travel expenditures.
Thus the record clearly indicates that the $100 duty exemption has
directly reduced dollar outflows by over $100 million a year_
Clle example of the-way in which this reduction if! duty-free
allowances can make a noticeable contribution to an improvement in our
balance of payments can be seen by r!oting that, with a $500 exemption,
a family of four could impon a. European automobile into the United
States without paying any dut.y"
would be subject to customs
duty~
With the reduced exempt.ion,; t.his import
We have no statistics vIDich make
it possible to separate out the number of foreign automobiles brought
back to the United States l>y :retu..""'Iling travellers fran the number of
imported foreign autaDobiles, but it is clear that so far as customs
payments are involved in a decision of this kind , the reduced allowance
makes the purchase of an autanobUe abroad less attractive.
- 2 -
In considering the proper levels for this duty-free allowance,
it is appropriate to consider what other prosperous industrial countr1••
find appropriate tor their tourists.
has an allowance ot over $100.
ot such countries only one, ItalT,
France allows $10, Germany $l.2. 50 and
tho United Kingdom, nothing at all.
Finally, our neighbor, Canada,
which last year reduced its allowanoes temporarily tor balance of
payments reasons has just made these reductions pennanent.
Canada. now
allows $100 onoe a year tor a voyage overseas and $25 four times a
year for trips to the United States, allowances that are more restrictbt
than our suggestions.
When this reduction was first enacted by the Congress in 1961,
WI upoot"c1 thAt it would bO of mAt I 1'1&1. uliatanoe in our ettona
to reduce the balance ot payments deficit.
I am pleased to report
that this has indeed been the case.
The Bureau of Customs estimates that during 1962 foreign acquisitions by returning U. S. residents amounted to $297 million as
compared to $420 million during oalendar year 1960, in the last tull
;rear betore the reduotion of the exemption.
ment or $123 million or about. 30 percent.
This represents an impronThis overall improvement
took place in spite or an increase ot almost 10 percent in the
ot U.
So citizens travelling abroad.
~r
Other available statistics
confirm the benetit to our balance of payments, since they show that
travellers also reduoed their per capita expenditures abroad.
other words, they did not,
&8
In
some had feared, balance oft their
reduced purchases by inoreased expenditures on night clubs, re~
DRAFT STATEMENT
re HR 6791
Mr. Ch&innan, members or the Canmittee, I appreciate the oppor-
twrlty to appear before you and recommend enactment or H. R. 6791
which would oontinue for two years, through June 30, 1965, the existing
reduotion or $100 in the amount
returning residents.
ot the exemption trom duty enjoyed b1
In the absence of Congressional action the exemp-
tion would rise to $500 on July 1 of this year.
These figures refer to the valuation of purchases for duty purposes.
The amount available for actual duty-free purchases is
considerably la.rger.
Goods are general.l.y valued at their wholesale
rather than their retail price.
Recently Customs has publioized an
interpretat10n of how the wholesale price or goode acquired abroad w1ll ~
be determined.
This will simplify matters for returning tourists
bY' giving them adequate advance knowledge
chases tor customs purposes.
ot the value ot their pur-
With only two exceptions, the wholesale
value of all purchases made abroad shall tor purposes
ot oustoms
valuation be deemsd to be 40 percent 1e38 than the full retail price.
In other words, a tourist 1s a.ble to buy up to $166.67 worth ot articlll
and still remain below the $100 duty-free level.
are articles especially made to order
j
The two exceptions
such as wearing apparel» which
have no wholesale price~ and automobiles.
Thus an extension of
current $100 duty-frae level will permit a couple travelling abroad
to purchase $33J.3J worth of articles without making themselves ~le
for duty.
Were the former $500 fieure to appl3' this dut;y tree allowance
would become $1,666.67 tor a returning couple.
- 7 -
.; 1")4
-\,.,
possessions of the United States less favorably than the Virgin
Islands.
Moreover, such exemptions would have no appreciable effec
on the U. S. balance of payments.
Accordingly, the Treasury would
not object to this provision in H.R. 6791.
000
-: ("' r:
- 6 -
,..
~
-
The deficit ~vas reduced to $2.4 billion in 1961, and in 1962
to $2.2 billion.
Gold losses were $857 million in 1961 and $890
million in 1962.
.lbi1e there are signs that our payments deficit
can be expected to improve over the long run, 1963 Ivill be another
deficit year with further gold losses.
In these circumstances, we
must seek out and apply even more vigorously measures specifically
aimed at restoring equilibrium in our international accounts.
~
cannot afford to rela:{ any of our efforts.
Finally, I would like to point out one minor change in H.R. ~,
compared Vlith the present law, which provides a special $200 exemp
tion for imports from the Virgin Islands.
H.R. 6791 extends this
exemption to our other insular possessions, Guam, American Samoa,
~vake Island, Hid,vay Islands, Kingman Reef and Johnston Island. tal
privilege \vas requested by the Speaker of the Guam Legislature. ~
Treasury Department knmvs of no reason for treating the other iDJI
- 5 to carry an unfair share of the burden
tures abroad compared with civilian tourists.
If the $100 limit
were not continued this morale problem would undoubtedly be aggra.
vated, thus jeopardizing such programs for the ArThed Forces.
In summary, the $100 limit has cut the balance of payments
deficit by substantially more than $100 million, and-ftl
tl'ba1
' ( ""t:r~Qte. a like amount, for a total of. some $200_
r
.
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-
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...
.
,"-
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/~
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~-
v
Since this measure is such a useful tool in reducing the
deficit, I believe its extension for another two years is most
important.
We
cannot afford to relax any of our efforts to improve
balance of payments,for the situation is serious.
international accounts
The deficit wd
rose to $3.5 billion in 1958 and was follOll
one of $3.7 billion in 1959 and $3.9 billion in 1960.
These pay-
ments deficits were accompanied by substantial drains on our gold
stock:
$4.7 billion for the three year period 1958-60.
-4With a $500 exemption, a .i:amily of .four could import a european
automobile duty- Zree, but wi tll the reduced exemption it would 6~
subject to duty.
The Department of Defense is doing its part to solve the
balance of paYlhents problem by holding down defense expenditurES
overseas.
This has been done through a voluntary expendit::ure
control pr03ram, in which all service men and their dependents
stationed overseas are
ur~ed
to curtail unnecessary expendituw,
The Department has also sharply cut construction outlays
()ver~d
and elimina ted building :Zor recrea tional purposes, whetheL' paie
:(:)r through appropria ted or nonappropria ted '::unds.
The
Secre~c:1
0': iJe:Zense estimates that this program is saving us at least
~j
million a year .
.::::ven t.,ri i:t~ the present $100 touris t exemption this Depart,e:O
0:_ De,2ense program has at times created a morale problerrl ~'or ::"
armed services.
Servicemen. tend to think they are being asked
.....
.-.
- 3 Avera~e
expenditure per overseas tourist increased from $484 in
1952 to $612 in 1960.
It decreased to $604 in 1961 and to $576 ~
1962.
On the other hand, in the absence of the 1961 legislation, past
experience indicates that the annual increase in per capita tourist
e}.penditures would have continued.
If the 1952-1960 rate of increase had been allowed to continue
through 1962, the 1962 fi 6 ure \vou1d have been $649, which is $73
larger than the actual 1962 figure of $576.
Therefore, the indicated
reduction in 1962 travel expenditures of some 1,760,000 America over·
seas tourists was about $129 million.
Thus the record clearly indicates that the $100 duty exemptioo
has directly reduced dollar outflows by ';ve1l over $100 million a yeat
An e:~ample of how the reduction to $100 in duty-free goods
can contribute substantially to the nation's balance of
payments is the effect on American buying of foreign autos.
- 2 countries.
Italy is the only one with an allowance of over $100.
France allows $10, Germany $12.50 and the United Kingdom, nothing.
Canada allows
$100 once a year for a voyage overseas and $25 t:me
times a year for trips to the United States.
The American duty-free allowance reduction in 1961 from $500 tc
$100 was expected to cut the balance of payments deficit.
This has
been the case.
During 1962, foreign purchases by returning U. S. residents were
$297 million compared with $420 million in 1960, which was the last
year before the reduction of the exemption.
This represents an im-
provement of $123 million or about 30 percent, despite an increase of
almost 10 percent in the number of U. S. citizens travelling abroad.
Other statistics confirm the benefit tO,our balance of payments,
since they show that travellers also reduced their expenditures
abroad.
Nor did they balance off their reduced purchases by increa~
spendin3 on night clubs, restaurants, tours or other things.
iJ;1¥/ "D.
DRAFT
6
SITATEI'iENT OF THE· HONORABLE DOUGLAS· DILLON
-:>ECRETARY OF THE TREASURY
~-E-~JO
-,.
THE 3ENATE FINANCE CONHITTE"Eti
RtCOl1MENDING ENACTIfENT OF H. R.
~
~(bNI2 L'tf; '9&'))
'6791
Hr. Chairman, members of the Corrnnittee.
I appreciate the op-
portunity to appear before you and to recorrnnend enactment of H.R.
6791.
This bill would extend eLdsting legislation, through June 30,
1965, which permits Americans returning from abroad to bring in
$100 worth of merchandi::;e duty free.
If the Congress does not act
on this matter, the $100 figure will rise to $500 on July 1 of this
year.
Actually, the $100 duty-free figure is $166.67 in retail pr~~,
since for customs purposes all goods are valued at wholesale, and
~~~JL> ?,'«p z;. ~...-'"
the Bureau of Customs fig~ L ~40% ';if retail price for touris
purchases.
There a?xceptions to this rule:
articles made to
order, such as clothing, which have no ~Ilholesale price, and automobil
The returning f~erican tourist enjoys a generous duty-fr~
a llmvance compared >;vith his counterpart in other prosperous 10dus tr ~
STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
TO
THE SENATE FINANCE COMMITTEE
RECOMMENDING ENACTMENT OF H.R. 6791
JUNE 25, 1963
Mr. Chairman, members of the Committee.
I appreciate the
portunity to appear before you and to recommend enactment of
R. 6791.
This bill would extend existing legislation, through
ne 30, 1965, which permits Americans returning from abroad to bring
$100 worth of merchandise duty free.
If the Congress does not act
this matter, the $100 figure will rise to $500 on July 1 of this
are
Actually, the $100 duty-free figure is $166.67 in retail prices,
1ce for customs purposes all goods are valued at wholesale, and the
reau of Customs figures wholesale price to be 40 percent off retail
Lce for tourist purchases.
Le:
There are only two exceptions to this
articles made to order, such as clothing, which have no
)lesale price, and automobiles.
The returning American tourist enjoys a generous duty-free
.owance compared with his counterpart in other prosperous industrial
lntries.
Italy is the only one with an allowance of over $100.
lnce allows $10, Germany $12.50 and the United Kingdom, nothing.
ada allows $100 once a year for a voyage overseas and $25 three
~s
a year for trips to the United States.
- 2 -
'/
-;
')
The American duty-free allowance reduction in 1961 from $500 to
.00 was expected to cut the balance of payments deficit.
This has
!en the case.
During 1962, foreign purchases by returning U. S. residents were
:97 million compared with $420 million in 1960, which was the last
'ar before the reduction of the exemption.
This represents an
lprovement of $123 million or about 30 percent, despite an increase
: almost 10 percent in the number of U. S. citizens travelling abroad.
her statistics confirm the benefit to our balance of payments,
nee they show that travellers also reduced their expenditures
road.
Nor did they balance off their reduced purchases by increased
ending on night clubs, restaurants, tours or other things.
Average expenditure per overseas tourist increased from $484 in
52 to $612 in 1960.
It decreased to $604 in 1961 and to $576 in
62.
On
the other hand, in the absence of the 1961 legislation, past
perience indicates that the annual increase in per capita tourist
?enditures would have continued.
If the 1952-1960 rate of increase had been allowed to continue
~ough
~ger
1962, the 1962 figure would have been $649, which is $73
than the actual 1962 figure of $576.
Therefore, the indicated
duction in 1962 travel expenditures of some 1,760,000 America
erseas tourists was about $129 million.
Thus the record clearly indicates that the $100 duty exemption
s directly reduced dollar outflows by well over $100 million
year.
An example of how the reduction to $100 in duty-free goods can
ntribute substantially to the nation's balance of payments is the
fect on American buying of foreign autos.
With a $500 exemption,
family of four could import a European automobile duty-free, but
th the reduced exemption it would be subject to duty.
The Department of Defense is doing its part to solve the
lance of payments problem by holding down defense expenditures
~rseas.
This has been done through a voluntary expenditure
ltrol program, in which all service men and their dependents
itioned overseas are urged to curtail unnecessary expenditures.
Department has also sharply cut construction outlays overseas,
eliminated building for recreational purposes, whether paid for
:ough appropriated or nonappropriated funds.
The Secretary of
:ense estimates that this program is saving us at least $100
.lion a year.
1_.J...
1 4-
- 4 -
Even with the present $100 tourist exemption this Department
Defense program has at times created a morale problem for the
med services.
Servicemen tend to think they are being asked to
rry an unfair share of the burden in reducing dollar expenditures
road compared with civilian tourists.
If the $100 limit were
t continued this morale problem would undoubtedly be aggravated,
us jeopardizing such programs for the Armed Forces.
In summary, the $100 limit has cut the balance of payments
ficit by substantially more than $100 million, and has given a
tionale to the military which has enabled them to contribute a
~e
amount, for a total of some $200.
Since this measure is such a useful tool in reducing the deficit,
>elieve its extension for another two years is most important.
cannot afford to relax any of our efforts to improve the
.ance of payments, for the situation is serious.
The deficit in
international accounts rose to $3.5 billion in 1958 and was
lowed by one of $3.7 billion in 1959 and $3.9 billion in 1960.
se payments deficits were accompanied by substantial drains on
gold stock:
$4.7 billion for the three year period 1958-60.
- 5 -
The deficit was reduced to $2.4 billion in 1961, and in 1962
$2.2 billion.
Ilion in 1962.
Gold losses were $857 million in 1961 and $890
While there are signs that our payments deficit can
expected to improve over
the long run, 1963 will be another
ficit year with further gold losses.
In these circumstances, we
st seek out and apply even more vigorously measures specifically
med at restoring equilibrium in our international accounts.
We
:nnot afford to relax any of our efforts.
Finally, I would like to point out one minor change in H.R. 6791
Impared with the present law, which provides a special
emption for imports from the Virgin Islands.
$200
H. R. 6791 extends
.is exemption to our other insular possessions, Guam, American Samoa,
ke Island, Midway Islands, Kingman Reef and Johnston Island.
This
ivilege was requested by the Speaker of the Guam Legislature.
e Treasury Department knows of no reason for treating the other
sular possessions of the United States less favorably than the
rgin Islands.
Moreover, such exemptions would have no appreciable
fect on the U. S. balance of payments.
Accordingly, the Treasury
uld not object to this provision in H.R. 6791.
000
F"}\ .iE',
. . ' "j'"
"
~d.aJ,L ~tune 2::'1 l}~l·__ _
".> ';
I,'
;t·~,:",;""
~.;,~>yt
. .f;:~E.Y.L'f BILL
orr~;RIJIQ
.....u.ac
1'ha ..'nilSUlJ' :"t;~t announced lut.
t.b<it. tbe '-'..... t . , ___ ~
l'reaaur'y b1lla, OM s ...ri~ to be an additJ.anal s.... of \M b1ll8 eIM......... lJ6.1
and the GtMr sories t.o 00 dat,e.d June 27. 196J, 1Ib1ob . f t ottenct - ~ U, _
0Peft8Cl Oot. the Fed"ral'1i!aerve :W1ks on June 24. T. . . . . wen SlwS..... tw A,,.....
t.heru~t5, :}f ("l.....ia;/ bill! aJ'ld for :1;800,000,000, 01' t. ........__ • ., 112-4lr"MlIa
!he de\ails of the ::'k,) series are ail rollowal
..."
or
:?1-da.Y 'i'l"OUU1'7 bUla
.ma~ Deptember 26.
182-c1a7 TN...,
~
S3 , . -'-is DlIII-'r I6a "
__"~.~.
99.252
99.244
99.241
A??rOX. F
:¥'.
Annual a..te
2.9S9:£
2.991. '
2.979:
y
~
s
ppna.
P!!p
98~1
96 Jc46
98Jab8
.........
).GeI •
).*
,.~ ~
-,1 /-41'08nt. of tl£ rurJ,ount. ;:;! 91-dq bills. b14 tor at t.M low pr10e . . aeoepW
9) ;i8rcent of t.r.e ~unt of 152-day bills bid for at. toM 1_ pr10e _ .......
TREASURY DEPARTMENT
IR RELEASE Ao M. NEWSPAPERS,
1\1.
6
JWl8 "" 19 3
esday, June 25, 1963.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series ot
easury bills, one series to be an additional issue of the bills dated March 28, 1963,
d the other series to be dated June 27, 1963, which were offered on June 19, were
~ned at the Federal Reserve Banks on June 24. Tenders were invited for $1,300,000,000,
thereabouts, of 91-day bills and for $800,000,000, or thereabouts, ot 182-day bills.
~ details of the two series are as tollows:
91-d~ Treasury bills
~GE OF ACCEPTED
182-~ Treasur,y bills
maturing September 26, 1963
~TITIVE BIDS:
maturing December 26, 1963
Approx. EqU1v.
Approx. EqUIv.
Price
Annual Rate
Price
Annual Rate
High
99.252
2.959%
3.062%
98.452
Low
2.991%
99.244
98.446
3.074%
Average
99.247
98.448
3.070% !I
2.979%
·
Y
·
1 percent ot the amount of 91-~ bills bid for at the low price was accepted
3 percent ot the amount ot 182-day bills bid for at the low price was accepted
:At TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
Applied For
Accepted
Applied For
Accepted
loston
$ 39,769,000 $ 29,769,000 : $ 18,412,000 $ 3,412,000
~w York
1,364,220,000
867,135,000
1,14l,190,000
643,343,000
'hilade1phia
29,477,000
14,477,000
14,144,000
9,dili,000
leveland
41,670,000
41,570,000:
18,537,000
13,499,000
ichmond
11,008,000
11,008,000:
3,668,000
1,568,000
t1anta
29,272,000
27,692,000:
9,432,000
8,417,000
hicago
2l6,256,000
153,646,000
137,643,000
66,173,000
t. Louis
28,106,000
22,106,000:
12,347,000
7,097,000
lnneapo1is
19,357,000
18,067,000
7,102,000
5,567,000
ansas City
32,886,000
28,596,000:
16,196,000
11,943,000
Ulas
24,444,000
17,154,000:
9,092,000
4,092,000
an Francisco
74,250,000
69,235,000:
55,139,000
26,586,000
TOTALS
$1,910,715,000 $1,300,455,000~ $1,442,902,000 $800,741,000£1
Includes $245,028,000 noncompetitive tenders accepted at the average price of 99.247
tnc1udes $57,647,000 noncompetitive tenders accepted at the average price ot 98.448
~ a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.04%, for the 91-day bills, and 3.16%, 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 i f more than one coupon period is involved.
~strict
90
- 6 -
some oceml and upon our actions at home and abroad.
I have no
doubt that both your deeds and the other accomplishment. of our
people will convince our enemies as well as our friend. that. b
Hamilton's words, "The pulse of Americans beats high in their
country's cause. tJ
000
- 5 -
the waters of the world to preserve our country from attack IDd to
promote the cause of freedom, we at home muat attend to the IbIt
unfinished business of extending to all our citizena the very
freedoms and opportunities that these ships and their men .ervl to
protect.
S.j ;... (J
I am indeed happy that another ALEXANDER HAMILTON will ij.~
A
sail the seas, for the last vessel to bear his name -- a flghtlDa
Liberty Ship that rendered gallant service from shortly after Pearl
Harbor until recent tLmes -- has now been honorably retiTed. It
is fitting that a Polaris Submarine should bear the name of •
!lID
l'1ho helped give birth to both our Navy and our Nation. and who
helped set both cn their unwavering course as Freedom'. champtau.
In 1784 Hamilton wrote.:
"The world haa its eye upon MlrUa. "
Even more it is upon us today -- upon your presence 8~' ~
- rt -
Hamilton fought constantly and effectively_ for
etr...
daf~
aive forces, not as instruments of war, but a8 .hi.lde apln.t WIr.
For he knew as 'well as any man that freedom i. hard
WOIl . . .
bard
preserved against the forces of tyranny and aaare.eion.
That is
~~iltonfs
chief legacy to us today.
But he left us another legacy -- a legacy that 1e
.trona -.q
us today as we struggle to bring the fruits of freedaa to all
Americans.
For Hamilton was one of the first to recoplae that
America I S freedom is compromised
80
long a. there are .... lcan. who
He was in the forefroet of
are deprived of their civil rights.
early efforts to foster and preserve civil liberti.a, freedom of
the press, the rights of minorities
~
he opposed rell,lou te.U
!O-~-
.'
...-..:;&
for voting, and he was a leader in the New York society for
pr.-
ing the freedom of slaves.
As the ALEXAI:~n~~~. }..l.i'J'ITLT0N and her siater ships crul ••
IMDaIth
........
- 3 policy, he was more than Secretary of the Tr...ury.
He ... ill flit
washington's prime minister."
Hamilton also played a crucial role in the creation of
~
United States Navy -- a role that rank. him h1&h 8mODI the •• lect
group of men who can justly be called Hfather. of the United State.
Navy. II
He clearly foresaw that seapower wa. es • •tial, aoe onl,
for national survival, but for national greatness and growth.
Seapower, he argued, would form a. kind of great barrier reef ••
I
deterrent, in today's terminology _. behind whioh our Mtlon couW
progress in peace and security.
These arguments bore fruit with the
passage of the Naval Act of 1794, which officially createtl a Ulltad
States Navy.
Hamilton's efforts did not end there.
rlve,...
later he reconmended to the Secretary of War the ereation of •
..-1
Academy -- an idea that proved somewhat in advance of hi. timl.
llamiltOll f~
- 2 and forceful champion of "the sacred ript. of 1MIlkind" -iell ". .
never be erased or obscured by mortal power."
Only two ,.ear. later I
he was a captain in command of a company of Provincial Artillery,
and served with such bravery and brilliance that G......al Wuhiaatoa
chose him to be his personal aide.
No man was c loser to
~"a8hington
or more tru.ted by him.
great matters as well as small, it was to KaBilton -- more
OD
~ ~
any other man -- that washington instinctively turned. for help ad
advice, both in war and in peace.
And more, perhap.. tbaD tho.. of
any other single individual, it was the iDfluence 8Dc:l i .... of
Alexander Hamilton that gave shape and direction to the .... DlCi.
in its first few decades.
we can gather some 1dea of the
~•••
able impact of Hamilton's deeds and talent. from the worda of till
historian who wrote:
"Concerning hi.meelf with every pbaae of publiC
iillDRESS BY THE HONORABLE OOOOLAS DILLON
SECRETARY OF THE TREASURY
AT THE COMMISSIONING OF THE USS ALEXANDER HAMILTON
(SSB(N) 617)
AT GROTON, CONNECTICUT
JUNE 27, 1963,2:30 P. M., EDT
As an American -- and as a former Navy man -- I speak to you
today with a mixture of pride, envy, and humility.
Pride t becau.e
of the might and mandate of the United States Navy exemplified
this latest addition to our seagoing forces.
~
Envy, because of the
mission on which the officers and men of the ALEXANDER HAMILTON are
about to embark in defense of freedom.
And, humility, when I coo-
template the career of the illustrous patriot ,vho was our fir.t
Secretary of the Treasury.
I
It is not easy to convey the full scope and power of Ham11tOll'
influence upon nearly every facet of our infant nation.
In 1774,
i.,~h8n I,e .las barely 18 years old t he first spoke out as a brillunt
TREASURY DEPARTMENT
Washington
FOR RELEASE: AFTERNOON NEWSPAPERS
THURSDAY, JUNE 27, 1963
ADDRESS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT
THE COMMISSIONING OF THE USS ALEXANDER HAMILTON
(SSB(N) 617)
AT
GROTON, CONNECTICUT
THURSDAY, JUNE 27, 1963, 2:30 P. M., EDT
As an American -- and as a former Navy man -- I sp~ak to you
today with a mixture of pride, envy, and humility. Pride, because
of the might and mandate of the United States Navy exemplified in
this latest addition to our seagoing forces. Envy, because of the
mission on which the officers and men of the ALEXANDER HAMILTON are
about to embark in defense of freedom. And, humility, when I
contemplate the career of the illustrous patriot who was our first
Secretary of the Treasury.
It is not easy to convey the full scope and power of Hamilton's
influence upon nearly every facet of our infant nation. In 1774,
when he was barely 18 years old, he first spoke out as a brilliant
and forceful champion of "the sacred rights of mankind" which "can
never be erased or obscured by mortal power." Only two years later,
he was a captain in command of a company of Provincial Artillery,
and served with such bravery and brilliance that General Washington
chose him to be his personal aide.
No man was closer to Washington or more trusted by him. On
great matters as well as small, it was to Hamilton -- more than to
any other man -- that Washington instinctively turned for help and
advice, both in war and in peace. And more, perhaps, than those of
any other single individual, it was the influence and ideas of
Alexander Hamilton th~t gave shape and direction to the new nation
in its first few decades. We can gather some idea of the immeasurable
,impact of Hamilton I s deeds and talents from the words of the
historian who wrote: "Concerning himself with every phase of public
policy, he was more than Secretary of the Treasury. He was in fact
,.Jashington's prime minis ter."
)-891
- 2 -
Hamilton also played a crucial role in the creation of the
ited States Navy -- a role that ranks him high among the select
::>up of men who can justly be called "fathers of the United States
1fY." He clearly foresaw that seapower was essential, not only
r national survival, but for national greatness and growth.
3power, he argued, would form a kind of great barrier reef -- a
terrent, in today's terminology -- behind which our nation could
Jgress in peace and security. These arguments bore fruit with the
3sage of the Naval Act of 1794, which officially created a United
3tes Navy. Hamilton's efforts did not end there. Five years
~er he recommended to the Secretary of War the creation of a
fal Academy -- an idea that proved somewhat in advance of his time.
Hamilton fought constantly and effectively for strong defensive
~ces, not as instruments of war, but as shields against war.
~ he knew as well as any man that freedom is hard won and hard
~served against the forces of tyranny and aggression.
That is Hamilton's chief legacy to us today.
But he left us another legacy -- a legacy that is strong among
today as we struggle to bring the fruits of freedom to all
~ricans.
For Hamilton was one of the first to recognize that
·rica's freedom is compromised so long as there are Americans who
deprived of their civil rights. He was in the forefront of
'ly efforts to foster and preserve civil liberties, freedom of
press, and the rights of minori~ies. He opposed religious tests
voting, and he was a leader in the New York society for promoting
freedom of slaves.
As ALEXANDER HAMILTON and her sister ships cruise beneath
waters of the world to preserve our country from attack and to
mote the cause of freedom, we at home must attend to the great
inished business of extending to all our citizens the very
edoms and opportunities that these ships and their men serve to
tect.
I am indeed happy that another ALEXANDER HAMILTON will soon
l the seas, for the last vessel to bear his name -- a fighting
~rty Ship that rendered gallant service from shortly after
~l Harbor until recent times -- has now been honorably retired.
ls fitting that a Polaris Submarine should bear the name of a man
helped give birth to both our Navy and our Nation, and who helped
both on their unwavering course as Freedom's champions.
- 3 -
128
In 1784 Hamilton wrote: "The world has its eye upon America."
n more it is upon us today -- upon your presence somewhere in
e ocean and upon our actions at home and abroad. I have no
bt that both your deeds and the other accomplishments of our
p1e will convince our enemies as well as our friends that, in
i1ton's words, "The pulse of Americans beats high in their
ntry's cause."
000
-; ?
_L
""?
l
TREASURY DEPARTMENT
June 25, 1963
FOR D-1MED rATE RELEASE
TREASURY DECISION ON TITANIUM DIOXIDE
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that titanium
dioxide from France 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.
'l'he dollar value of imports received during the year
1962 . . 'as approximately $1}4oo}ooo.
TREASURY DEPARTMENT
June 25, 1963
FOR D-lMED rATE RELEASE
TREASURY DECISION ON TITANIUM DIOXIDE
UNDER THE ANTIDUIvlPING ACT
The Treasury Department has detennined that titanium
dioxide from France 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 Tarlff Commission will be published in the
Federal Register.
The dollar value of imports received during the year
1962 was approximately $1,400,000.
TREASURY DEPARTMENT
June 25, 1963
FOR II·ll·:8DIATE RELEASE
TllliASlJRY DECISION ON POl~TIAND CEMENT
UNDEH THE AN'l'IDUI<lPIHG ACT
The 'Il'CasLu'Y Department has determined that Portland cement,
other than 'I-lhite, nonstaining Portland cement, from Poland is not
beinc;, nor likely to be, sold in the United States at less than
fair value within the meaning of the Antidumping Act.
Notice of
the determination will be published in the Federal Register.
Appraising officers are being instructed to proceed with the
appraisement of this merchandise from Poland without regard to any
question of dumping.
The dollar value of .i.mports of the involved merchandise received during 1962 was approximately $280,000.
TREASURY DEPARTMENT
June 25, 1963
FOR IMMEDIATE RELEASE
TREASURY DECISION ON PORTLAND CEMENT
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that Portland cement,
other than white, nonstaining Portland cement, f'rom Poland is not
being, nor likelY to be, sold in the United States at less than
f'air value within the meaning of' the Antidumping Act.
Notice of'
the determination will be published in the Federal Register.
Appraising of'f'icers are being instructed to proceed with the
appraisement of' this merchandise f'rom Poland without regard to any
question of' dumping.
The dollar value of' liaports of' the involved merchandise received during 1962 was approximatelY $280,000.
- 3 ~
-~------
ana
e;:chCln~c
tenders will receive equ::ll. treatment.
Cash adjustments will be made
for differences bctvccn the p:Lr vnlue of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Trcosury bills, whether interest or gain from the a&le
or other disposition of the bills, does not have any exemption, as such, and
1081
from the seLle or other d18position of Trcnnury bills does not have any special
trerd.rr:r:nt,
w,
such, under the Internal Revenue Code of 1954.
The bills are subject
to c::;tll.t-.e, inheritance, gift or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hercafter imposed on the principal or interest
thereof by any state, or any of the possessions of the United states, or by any
local
tD.xin~
(1uthority.
For purposes of ta:'ation the amount of discount at which
Treasury bills are originally sold by the United states is considered to be interc::;t.
Undcr 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
consi~red
to accrue until such bills are sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital a.ssets.
Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need iD·
elude in his income tax return only the difference between the price paid for 8IICi
bills, whether on originnl issue or on subsequent purchase, and the amount ~t~
received either upon sale or redemption at maturity during the taxable year for
which the return is
~~de,
as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) 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 BnUlch.
tmals, e. g., 99.925.
Fractions
~
not be used.
It is urged that tenders
made on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
vided the names of the customers are set forth in such tenders.
Others than
king institutions will not be permitted to .submit tenders except for their
account.
Tenders will be received without deposit from incorporated banks
trust companies and from responsible and recognized dealers in investment
urities.
Tenders from others must be accompanied by payment of 2 percent of
face amount of Treasury bills applied for, unless the tenders are accompanied
an express gua.ra.nty of payment by an incorporated bank or trust company.
Dmnediately after the closing hour, tenders will be opened at the Federal
erve Banks and Branches, following which public announcement will be made by
Treasury Department of the amount and price range of accepted bids.
Those
rnitting tenders will be advised of the acceptance or rejection thereof.
The
retary of the Treasury expressly reserves the right to accept or reject any
all tenders, in whole or in part, and his action in any such respect shall be
sl.
Subject to these reservations, noncompetitive tenders for
s for the additional bills dated
until maturity date on
~o
or less for the
April 4~63
octobeilii 1963
181
, ( 90
$ 200,000 or
Ujij
fW)
days rema1n-
) and noncompetitive tenders for
-day bills without stated price from any 'one
tal
ler will be accepted in full at the average price (in three decimals) of ac;ed competitive bids for the respective issues.
J
C8
L
Settlement for accepted ten-
in accordance with the bids must be made or completed at the Federal
on
July 5~63
Reserv~
, in cash or other immediately available funds or
like face amount of Treasury billa maturing
July 5tJi63
•
Cash
TREASURY DEPARTMENT
Washington
June 26, 1963
FOR n!r-mDIATE RELEASE
~
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two serie.
of Treasury bills to the aggregate amount of $ 2,100,000,000 , or thereabouts, for
t2})
cash and in exchange for Treasury bills ma.turing
July 5tJ963
, in the __
of $ 2,100ti}2,000 , as follows:
90 -day bills (to maturity date) to be issued
m
July 5, 1963
ti5J
in the amount of $ 1,300,000,000 , or thereabouts, represent·
~
ing an additional amount of bills dated
and to mature
amount of $
octobeLa¥: 1963
800,~000
April
~963
, originally issued in the
, the additional and original bills
to be freely interchangeable.
181 -day bills, for $ 800,000,000
tHi
July 5, 1963
~
--~~~~-----
, or thereabouts, to be dated
, and to mature
January 2, 1964
thij
The bills of both series will be issued on a discount basis under competit1ft
and noncompetitive bidding as hereinafter provided, and at maturity their f~e
amount will be payable without interest.
They will be issued in bearer fom oD11,
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,OOOud
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Easternjztamiari time, Monday, JU1~1963 ~
Tenders will not be received at the Treasury Department, Washington.
F,a.ch teDIW
must be for an even multiple of $1,000, and in the case of competitive tendel'l'
price offered must be expressed on the basis of 100, with not more than t~
/
'-C
TREASURY DEPARTMENT
June 26, 1963
OR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
Ir two series of Treasury bills to the aggregate amount of
,100,000,000, or thereabouts, for cash and in exchange for
'easury bills maturing July 5, 1963,
in the amount of
,100,972,000, as follows:
90-day bills (to maturity date) to be issued
the amount of .$1,300,000,000, or thereabouts,
ditional amount of bills dated April 4, 1963,
ture Oc tober 3, 1963, oI'iginally issued in the
00,033,000,
the additional and original bills
terchangeable.
July 5, 1963,
representing an
and to
amount of
to be freely
181-day bills, for $ 800, OOQ ,000,
or thereabouts, to be dated
1y 5, 1963,
and to mature
January 2, 1964.
The bills of both series will be issued on a discount basis under
mpetitive and noncompetitive bidding as hereinafter provided, and at
turity their face amount will be payable without interest. They
11 be issued in bearer form only, and in denominations of $1,000,
,000, $10,000, $50,000, $100,000, $500,000 and $1,000,.000
aturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m., Eastern Daylight Saving
ne, Monday, July 1, 1963.
Tenders will not be
~eived at the Treasury De~artment, Washington.
Each tender must
for an even multiple of ~;1,000, and in the case of competitive
1ders the price offered must be expressed on the basis of 100,
;h not more than three decimals, e. g., 99.925. Fractions may not
used. It is urged that tenders be made on the printed forms and
'warded in the special envelopes which will be supplied by Federal
lerve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
ltomers provided the names of the customers are set forth in such
lders. Others than banking institutions will not be permitted to
Imit tenders except for their own account. Tenders will be received
hout deposit from incorporated banks and trust companies and from
ponsible and recognized dealers in investment securities. Tenders
m others must be accompanied by payment of 2 percent of the face.
unt of Treasury bills applied for, unless the tenders are
ompanied by an express guaranty of payment by an incorporated bank
trust company.
892
- 2 -
Inunediately 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 Departnunent of the amo~t
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
April 4, 1963,
(90-days remaining until maturit¥ date on
October 3 1963)
and noncompetitive tenders for ~100,OOO
or less for the 18l-day bills without stated price from anyone
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 Banks on July 5, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturingJuly 5, 1963.
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 haft
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 authori~,
For purposes of taxation the amount of discount at which Treasu~
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 otherwi se disposed of, and such bills are excluded
from consideration as capital assets. Accordingly, the owner of
Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtaiMdr~
any Federal Reserve Bank or Branch.
000
- 3 -
with respect to wool top from Uruguay.
Again, in 1961 he
received a Superior Work Performance Award for the exceptional
manner in which he had performed his duties of Assistant
Deputy Corrrrnissioner.
He will also receive the Gallatin Award
upon his retirement for
lo~g
and honorable service.
~~~~~
I
and
V
Mr. Audett resides with his wife, '
their
-----, ~t(}../~
Kensington, Maryland.
,
at 4512 Woodfield Road,
They will move to Southern California
following his retirement.
- 2 -
anti-dumping statutes of the United States."
Mr. Aujett began his career in 1930 as a Customs guard
at Seattle, Washington, after receiving his bachelor of laws
degree at the University of Washington.
He has held positions of
custO"11S examiner at Norfolk and Los Angeles, and appraiser of
merchandise at LaredJ and Miami.
He was an Army officer
between 1942 and 1946.
Mr. Audett represented the Bureau of Customs at the
Trade Agreement negotiations in Geneva in 1956 and the
negotiations of 1961 also at Geneva.
His contribution was
recognized by expressions of appreciation from the Department
of State, the Treasury Department and the Tariff Commission.
In 1959, Mro Audett received a Special Act of Service
AW;lrd for his work in assisting the Treasury in preparatl. on for
the Se':1ate Finance Committee hearings on countervailing duty
June 28, 1963
FOR I~DIATE RELEASE
AFTER 3:30 P.M., June 28, 1963
EXCEPTIONAL SERVICE AWARD GRANTED
TO THEOPHILUS B. AUDETT BY SECRETARY DILLON
Secretary of the Treasury Douglas Dillon today presented
t~
Treasury's Exceptional Service Award to Theophilus B. Audett,
Assistant Deputy Commissioner of Customs, at a ceremony in the
Treasury Building at 3:30 p.m.
Mr. Audett will retire July 20, after 33 years of government
service, 29 years of which have been with the Appraisement Service
of the Bureau of Customs o
In his citation, Secretary DLllon paid tribute to Mr. Audett
aJ
Han inspiring exa'11ple to all who seek advancerre nt through merit."
"His career is an outstanding tribute to the highest traditi~
of the Civil Service, II tho.= citation continued
G
J'Mr. Audett is
widely known as a man of few words, but decisive and accurate
judgment in matters relating to highly complex appraisement ~d
TREASURY DEPARTMENT
June 28, 1963
'OR IMMEDIATE RELEASE AFTER 3:30 P.M.
'RIDAY, JUNE 28, 1963
EXCEPTIONAL SERVICE AWARD GRANTED TO
THEOPHILUS B. AUDETT BY SECRETARY DILLON
Secretary o~ the Treasury Douglas Dillon today presented the
reasury's Exceptional Service Award to Theophilus B. Audett,
ssistant Deputy Commissioner of Customs, at a ceremony in the
reasury Building at 3:30 p.m.
Mr. Audett will retire July 20, after 33 years of government
ervice, 29 years of which have been with the Appraisement Service
f the Bureau of Customs.
In his citation, Secretary Dillon paid tribute to Mr. Audett
s "an inspiring example to all who seek advancement through merit.
"His career is an outstanding tribute to the highest traditions
f the Civil Service," the citation continued.
"Mr. Audett is
idely known as a man of few ~ords, but decisive and accurate
ldgrnent in matters relating to highly complex appraisement and
lti-durnping statutes of the United States."
Mr. Audett began his career in 1930 as a Customs guard at
~attle, Washington, after receiving his bachelor of laws degree
: the University of Washington. He has held positions of
[storns examiner at Norfolk and Los Angeles, and appraiser of
~rchandise at Laredo and Miami.
He was an Army officer between
142 and 1946.
Mr. Audett represented the Bureau of Customs at the Trade
reement negotiations in Geneva in 1956 and the negotiations of
61 also at Geneva. His contribution was recognized by
pressions of appreciation from the Department of State, the
easury Department and the Tariff Commission.
893
- 2 -
In 1959, Mr. Audett received a Special Act of Service Award
Eor his work in assisting the Treasury in preparation for the
3enate Finance Committee hearings on countervailing duty with
~espect to wool top from Uruguay.
Again, in 1961 he received a
)uperior Work Performance Award for the exceptional manner in
~hich he had performed his duties of Assistant Deputy Commissioner.
Ie will also receive the Gallatin Award upon his retirement for
Long and honorable service.
Mr. Audett resides with his wife, the former Corinne Lawery and
:heir daughter, Katherine, at 4512 Woodfield Road, Kensington,
laryland. They will move to Southern California following his
"e t iremen t .
000
.'\ ..~~~,-,~,""""'s i."'l
.JvJ>- 1.,_
.... u ..
c;... •• _1".t,..o.1""
·~""'.'7'T)~":7~
.. _'._' ... ~.)
,I'
mil1io:lS - rounded and will not
r.~cessJ.::-ily
add to :.;-"'_ ••.
JI
Series :2::
1941
1942
1943
1944
1945
1946
1947
1948'
1']49
1950
1951
1952
1)53
1'')54
1955
1956
1957
1958
1959
1960
1961
1962
..•.......•..•••••••.
•...••..•.•••.•••.•••
•••.•....•••••••.••••
.••..••.•••••.•••••••
.•....•..•••••••.•..•
......•..•••••••.••••
•.•.•••.•••••••••..••
....••••••••••••••...
....•...••••••••.•...
.•...•.••••••••••.•••
.......•••••••••.•.••
.•.••••.•.••••••.••..
..•.••..••••••••.•••.
.••.••...•••••••.•••.
..... ..••..••.••.•.••
.•.•.•...•••.••••••••
.•..•••.•••..••••••••
•.•••••••••••••••••••
..•••••••••••••••••••
••..•••••• ~ • • • • • • • • • •
.••••••••.••••••••.•.
•••.••••••••••••••.••
1963 •••••••••••••••••••••
Unclassified .•••••••••••••••••
Total Series E .•••••••.•••••••
Series E (1952 - 1963).+( ........
1,,826
8,,062
12,,976
15,109
11,831 I
5,313
5,003
5,153
5,069
4,418
3,826
4,001.
4,5"
4,587
4,7,2 I
4,,566
4" 287:
1,,535
291
6,80,
1,256
1Q,936
2,,041
12,610
2,498
9,663
2,167
4,ll6
1,197
3,693
1,310
3,694
1,459
3,,44
1,,2,
3,001
1,417
2,,82
1,24,
2,631
1,370
2,777
1,778
2,,700
1,887
2,758
1,995
2,6,6
1,909
2,404
1" 883
4,l41 I
2,160
1,,981
3,869 I
1,962
1,907
3,847
1,784
2,063
3,854
1,5,2
2,301
1
3,709 I
1,185
2,,25
I 1,283!
l2l
1,162
11-__ 508 I
~5::1~0-4_ _ _-~2_-+__·
...;12=::..6Ju::5=45~-:,I_......;;8'lJlL-9+-_~39,.•.-:166~_-t-.....JJ:
9,148
1, 95::::..5-+_--!.7.z,:
.1~9::!..3_-+-_1lJ
.....
I
I
1
I
I
0-1
Total Series E and H ••••••••••
I 135,693
Series F and G (1951 - 1952).....
1,,007
I
89,334
46,359
~
247
~
~~~~~~==~~
760
iI
~~~--------~~~----~
Series J and K (1952 - 1957) •••• l--L.3,C6~9.!.7_I-_l~:...1I~9~89'--+-_.::!:1~.7~'0~8_-t-_~
Total Series F, G, J and K
All Series
1I
21
JI
U
.... f==4~,=704==::!==22,,~7='O==~==1:!:.,9=,=4==t==:::;::::;!Y
To~a1 matured ••••••.
Total unmatured •••••
Gr~"'ld Total.........
33,515
140,398
173,,912
:~cl~des accrued discount.
Current redemption value.
At option of o\'mer bonds may be held and
will earn interest for additional periods
a:ter origir.al maturity dates.
Ir.cl~c.es I:atured bor.ds which have not been
presented for redemption.
33,3,8
92~084
125,442
157
48,314
48,471
BURBA U OF T'rlE PUBLIC ~
United Stc:..tes S8.vir~s BO.1:5.~: I S:;Ut3d and RedecrJ.~d 7rt~ou.gh June
30, 1963
(Dollar a;'lou...'1ts in millions - rounded and will not necessa~ily add to to"J.ls)
Amo~~t
.\";,/lunt
;~-:1our,t
~: O,.rtst2..YK1inc
~~~ed 1/! Redee_m_ed--=lI:....;-_OU_t_s_t_3.!_nd_ill~g-=2.J~O_f_;. . "_I_ss_\,;._'L:_d
I,
-------------TI
~D
..........
........
.A-19J5 - D-1941
<:s F & G-1941 - 1950
~s
s J and K (1952 - 1957) ••••
$ 5,003
28,512
-
\
I
I
I
$ 4,990
28,368
3,697
1_989
J and K ••••
4,704
2,750
iT01a1
matured .......
Total unmatured •••••
33,515
140,398
173,912
33,358
92,.084
125,442
al Series
eries
-
":l_.'t_'
F, G,
Grand Total •••••••••
eludes accrued discount.
rrent redemption value.
option of o\'mer bonds may be held and
11 earn interest for additional pc riods
ter original maturity dates.
eludes matured bonds which have not been
asented for redemption.
$
14
l44
.28%
.51
fOrt .t.. L....:...;i " , . , ,; "",,",:i-l"~,,
'IueaiJ.tl' Jt;.li 2, l:;.;.ft;_··,.z:;.)..;,.,_ _ __
_I
Tno J'rehsurl !e.:j&rt.~:l-:,nt announced last. €venlnl:!; that the tender's for two II
ina.url billa, one 8e;ries to OE all addltiooal issue of the bUls dat.ed AprUl
tile other aeries tooe Jated July" 19(,3, which were otteNd on June 26,
"he F'ederal !1.8ecl'Ve t:!4nk8 .on Jul,f 1. Iendera we,... invited for A,)tjIJ,i.XX)
I
auout.a, of :X>-da.1 bill. anJ 1'or .-8G-i(),OOO,OOO, or t~lereaboutl, or Itl-uaJ bUlt,
d..tau. of tOti two series are as follows:
,000,
)O..day Treaaery billa
rtl&turilll '.)ctober ), 196.3 _
Approx. SQdv.
Price
Annual. :late
99.2SS
diKh
Low
n.?LL
AveI"a:e
iJ1.2h7
g
.
2.iBol
J.02la;{.
3.011 ~
!I
I
a
c
'E/
./ ':'xceptil1b one tender of ~5~u,OJOJ
C'xaepting one tender of ~5C5,ooo
bl percent of 't:'ie $;OlUlt of 9O-day bUla biJ for at the low price waa .o~
15 percel)t of l'e a!:)o\mt or l,)l-day bills bid for at the low price wu ....
';ietrict
~o8ton :lew 'fork
PHila.j.lp~:ia
,;1e\'eland
JUciaond
Atlanta
ChiC&6o
.'tcolied for
f' 36,132,000
1,462,436/Y,)J
26,htd,YX}
31, 776,(1{).)
22,~14IOW
23,'1:',:1,,0';:,0
20i,i.L';?,OO:J
St. Louie
).l,(}';;7,OOO
:-t1nneapolis
!anaas ~lty
16 ,970,O~K)
37,6)) ,t.XJi:J
2~,Oj4,t)O:)
":1&11&8
~:,an r'rancieco
115 I n2,f,}.jJ
Acce~t.«d
1.6,1)2,000
r
a
Applied For
I
22,S81,CX}u
843,146,000
I
l,01'!,661,OOO
ll,460,OOO
.37,776,000
11,514,000
23,6&9,000
I
11,6)6,000
15,060,000
10,.1.18,000
J
I
I
140,099,000 I
25,557,000:
1'l,5tiO,OOO
)1,6]),000
18,;.54,OYJ
98,802,00,!
t
!£!
~ 2tJ
t!21.
6'
Ii
I
3,060,000)
l09,03.5,OJO
>~I
6,772,000
4,)77 ,vOO
~
12,226,:)(>0
l'
1,161,000
4O,29,},000.J
91,30<),844,ooO!l 11,257 ,260,000 ~
:/, !neludes ';;2~4t14-1,o,j'J r.onc~petitive tenders accepted at the average prl«
y 411ch\des $u"b86,'YYJ noncorr,pet1tive tenders accepted at the average priOlj
}/ )n ,. coupOn issue of toe saM le~t:, and for tM sue MOuat lnyeated, t~
t~ttse 01~1s would orovide .:rteldl$ . .;f 3.:)5 ?"' for ·t.h~ 9O-da7 ~. and 3.V
101-day oU1u. rnt@r~8t rates on bills are quoted in tel'll8 ot ban\[ d1J'
return :e13ted to t ~.e !'~ce M.o,.;ni, of t.::e bUl. P6Yllule at _t.ur1ty ratlwr
aI!\c'..mt lnvestec! and 1;:fl~i r length tn a etual nUllll!be~ of days related to I J
'IV-lAw
.'2,040,O:)U,DOO
I:--. contras1. ".~nlds ;:,:': certificates,)-, not.es., and ;.;,~nd8 .~ coarpu1.ed in tr
on t ne a;..on.... l!iVested, and rel.t~ t.lE! n~Oer of (.Il,{8 rerr.ainlnc in an ~
oer... od to t h· f.! ct.'.:al nu-nber ')f daye in 1. he period, w'tt.h -&mumsl _
~ :.a:!1 one C'?,:~ ~:. '<::~i0d is involved.
::ASURY DEPARTMENT
~
A. M. NEWSPAPERS J
July 1, 1963
ily 2, 1963.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
'easury Department announced last evening that the tenders for two series of
~ls, one series to be an additional issue of the bills dated April 4, 1963, and
eries to be dated July 5, 1963, which were offered on June 26, were opened at
Reserve Banks on July 1. Tenders were invited for $1,300,000,000, or there90-day bills and for $800,000,000, or thereabouts, of lBl-day billa. The
the two series are as follows:
CEPTED
BIDS:
90-day Treasury billa
maturing October 3, 1963
Approx. Equiv.
Price
Annual Rate
2.980%
99.255 a7
99.244 3.024%
99.247
3.011%
Y
~
:
:
:
:
:
:
l8l-day Treasury bills
maturing January 2, 1964
Approx. Equiv.
Price
Annual Rate
98.452
3.019%
98.437
3.109%
98.445
3.093% !/
lil
£I
one tender of $500,000;
Excepting one tender of $585,000
of the amount of 90-day billB bid for at the low price was accepted
of the amount of l81-day bills bid for at the low price was accepted
S APPLIED FOR AND ACCEPTED BY FEDEHAL RESERVE DISTRICTS:
Applied For
$CCepted
~
Applied For
Accepted
$ 36,132,000
26,132,000: $ 22,581,000 $ 22,$81,000
1,462,436,000
843,746,000
1,014,661,000
621,911,000
La
26,460,000
11,460,000
11,836,000
6,836,000
37,776,000:
15,060,000
15,060,000
37,776,000
19,514,000:
10,178,000
4,178,000
22,294,000
23,989,000
23,689,000
3,080,000
3,080,000
201,439,000
V~0,099,000
109,035,000
58,035,000
31,857,000
25,857,000
6,772,000
5,212,000
17,580,000:
4,371,000
4,317,000
18,970,000
37,635,000
31,635,000
12,226,000
12,226,000
25,094,000
18,554,000
7,161,000
6,161,000
co
115,922,000
ge,B02,OOO:
40,293,000
40,293 , 000
IS
$2,040,004,000 $1,300,844,000:! $1,257,260,000 $BOO,010,000 #
~14,149,000 noncompetitive tenders accepted at the average price of 99.247
~5,686,000 noncompetitive tenders accepted at the average price of 98.445
issue of the s~ne length and for the same amount invested, the return on
would provide yields of 3.08%, for the 90-day bills, and 3.19%, for the
Is. Interest rates on bills are quoted in terms of bank: discount with the
ted to the face amount of the bills payable at maturity rather than the
sted and their length in actual number of days related to a )60-day year.
I yields on certificates, notes, and bonds are computed in terms of interest
lnt invested, and relate the number of days remaining in an interest payment
lhe a ctual number of days in the period, with semiannual compounding if more
upon period is involved.
TREASURY DEPARTMENT
July 2, 1963
FOR IMMEDIATE REIEASE
WITHHOLDING OF APPRAISEMENT ON
WINOOW GlASS
The Treasury Department is instructing customs field officers
to withhold appraisement of window glass, l6-ounce through 28-ounce
thicknesses, from Czechoslovakia 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 llillted
states at less than fair value would require reference of the case to
the Tariff CommiSSion, which would consider whether American
was being injured.
1ndust~
Both dumping price and injury must be shown to
justif,y a finding of dumping under the law.
The Bureau instituted an investigation in this case on lwhy 3,
1963.
The dollar value of
mately $400,000.
imports received during 1962 was approxi-
TREASURY DEPARTMENT
July 2, 1963
:roR IMMEDIATE RElEASE
WITHHOLDING OF APPRAISEMENT ON
WINDOW GLASS
The Treasur,y Department is instructing customs field officers
to withhold appraisement of window glass, l6-ounce through 28-ounce
thicknesses, from Czechoslovakia 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 industr,y
was being injured.
Both dumping price and inJury must be shown to
justifY a finding of dumping under the law.
The Bureau instituted an investigation in this case on M:I¥ 3,
1963.
Tbe dollar value of "imports received during 1962 was approxi-
mately $400 ,000.
nl'(, exempt,
frol,l 0.11 t2..'Cat:lon now 01' hereafLcr :impof'1cd on the princJpnl or
l.llcl'coi'l)y nny SLuf,c, or :my of the
loct)l tux inr: authorIty.
po~,Ges8ion8
Inl~~
of the Un:lted States, or by uny
For pUrpOGCD of t:1XDL:i.CI1 t.he amount of c1i::::count nt \/hie:
'l'reo.t:ul'Y ldlls nrc originally sold by the Unlted States is considered to be interest.
Um1.er SectlonG 4,54, (b) and 1221 (5) of the Internal Revenue Code of 1~4
the amount of discount at lrhich bills iSGued hereunder are sold is not considerti
to o.ccruc untilsueh bills arc sold, redeemed or otherwise dlsposed of, and sud
bills
11.)'('
c):clulkd
from conr;i(l('raL-ion af; c:'P Ltal. fl...;ncts.
il.ceordingly, the 01l!ler
o.l.' 'l'rCaf.illI'Y bj.l.lc (oLhel' [1):1n Jli'<' jn~;1u·tmCC companies) issued hereunder need illeludc 1n hiG income tu,"{ return only the difference betv7een the price paid for SI4
bills .. ",hether on oriG.Lnal
L~)r;U('
or on r;nbaeC]ucnt purchase, and the amount actlmlJ
l'cceJ.vcd eithcr upon sale or redemption at maturity durinG the taxable year for
"'hieh thc return is made, as ordinary Udn or loss.
'l'l'cn.sury Department Circular No. ~18 (current revision) and this notice, pre
serj.be Lhe terms or thc Treasury bills 3Jld govern thc conditions of their isSlf.
Copies of' the circular may be obtained. from any Federal Reserve Bank or Branch.
- 2 -
ing institutions will not be penni tLed to subml t tenders except for their own
unto
Tenders 'nll be received
'vT. r Lhout
deposit from incorporutr:;d banks and
t companies and from responsible and recoGnized deulers in investment securities.
ers from oLhers must be accompanied. by payment of 2 percent of the face amount
reasury bills applied for, unlesD the tenders are accompanied by an express
anty of payment by an incorporated bunk or trust compuny.
Immediately after the closlng hour, tenders will be opened at the Federal Re2
Bunks and Branches, follmvinc "hich l)ubJ ic announcement \rill be made by the
3Ury
Department of the amount and price range of accepted bIds.
tenders
~nll
le tl'rea:mry
be advised of the acceptance or rejecLion thereof.
e;~ressly
'l'hose submltThe Secretary
reGerves the riGht to D.cccpt or reject any or all tenders,
101e or in part, and his action in any Guch respect shull be final.
lese reservations, noncompeti ti ve tenders for
*
400,000
Subject
or le 5S \ri thout
(CNiif
:d price from anyone bidder "rill be accepted in full ut the average price (in
decimals) of accepted competitive bidG.
Settlement for accepted tenders in
'dance "nth the bids mUGt be inade or completed ut the Federal Reserve Bank on
llly 15, 1963
-::"'{di#~+-~~-
,in cash or other inunediately available funds or in a like
amount of Treasury bills rnaturlnc;
1'8
"nll receive equal treatment.
bet~leen
JU~5,
1963
Cash and exchange
Cash adjustments vrill be made for differ-
the par value of maturing bills accepted in exchange and 1;;he issue
of the nCH bills.
!'he income derived from Treasury bills, vlhether intereGt or gain :Cromthe sale
her disposition of the bills, does not have any exemption, as such, and loss
~he sale or other disposition of Treasury bills does not have any special
nent, as such, under the Internal Revenue Code of 1954.
The bills are subject
Gate, inheritance, gift or other excine taxes, ~Ihether Federal or state, but
TRSASURY DEPAR'IJdENT
viashington
July 2, 1963
TREASURY H2FUNDS ONE-YEAR BILLS
O'..rinc; to the
~ratifying
improvement in its cash position, the Treasury has
dec i(lCd only to replace the $2 billion of one-year bills maturing July 15, rathe
than raising this issue to the .$2.5 billion level of the other outstanding one-)'
bill issues.
The Treasury Department, by this public notice, invites tenders for
$ 2, 000 ,000, 000
~
, or thereabouts, of _~3r-6_6_-dny Treasury bills, for cash and
in exchance for Treasury bills maturing
of $ 2 z 003(JJ1,000
W
fflX
,to be issued on a discount basis under competitive and
noncompetitive bidding as hereinafter provided.
dated
, in the amounl
July 15, 1963
The bills of this series
, and will mature
July 15, 1963
W
the face amount ,rill be payable without interest.
July 15, 1964
~11~
, when
li3J
They will be issued in bearer
fonn only, and in denominations of $1,000, 40,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve. Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Eastern/~ time, Tuesday, July 9, 1963
t1ij
Tenders ,·rill not be received at the Treasury Department, Washington.
Each
t
te*
must· be for an even multiple of $1,000, and in the case of competitive tenderst
price offered nrust be expressed on the basis of 100, with not more than three III
1me.ls, e. g., 99.925.
Fractions may not be used.
these bills will run for
366
(Notwithstanding the fact till
days, the discount rate will be computed on a b
W
discount basis of 360 days, as is currently the practice on all issues of Treat
bills.)
It is urged that tenders be made on the printed foms and forwarded ill
the special envelopes which ,.,rill be supplied by Federal Reserve Banks or Jlr8IIClII
on application therefor.
Banking insti tutlons generally may submit tenders for account of cusj;aletl
proviaed the names of the customers are set forth in such tenders.
Others i'JJ'I
rREASURY DEPARTMENT
July 2, 1963
\ IMMEDIATE RELEASE
TREASURY REFUNDS ONE-YEAR BILLS
Owing to the gratifying improvement in its cash position, the
·asury has decided only to replace the $2 billion of one-year bills
:uring July 15, rather than raising this issue to the $2.5 billion
'el of the other outstanding one-year bill issues.
The Treasury Department, by this public notice, invites tenders
$2,000,000,000, or thereabouts, of 366-day Treasury bills, for
h and in exchange for Treasury bills maturing July 15, 1963, in the
unt of $2,003,591,000, to be issued on a discount basis under
petitive and noncompetitive bidding as hereinafter provided. The
1s of this series will be dated July 15, 1963, and will mature
y 15, 1964, when the face amount will be payable without interest.
y will be issued in bearer form only, and in denominations of
000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
turity value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m., Eastern Daylight Saving
.~, Tuesday, July 9, 1963.
Tenders will not be received at the
Isury Department, Washington. Each tender must be for an even
:iple of $1,000, and in the case of competitive tenders the price
~red mus t be expres sed on the bas is of 100, wi th not more than thret'
.mals, e. g., 99.925. Fractions may not be used. (Notwithstanding
fact that these bills will run for 366-days, the discount rate
be computed on a bank discount basis of 360 days, as is currently
practice on all issues of Treasury bills.) It is urged that
ers be made on the printed forms dnd forwarded in the special
lopes which will be supplied by Federal Reserve Banks or Branches
pp1ication therefor.
Banking institutions generally may submit tenders for account of
omers provided the names of the customers are set forth in such
ers. Others than banking institutions will not be permitted to
it tenders except for their own account. Tenders will be received
Jut deposit from incorporated banks and trust companies and from
)nsible and recognized dealers in investment securities. Tenders
- 2 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 b~k
or trust company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcemenf
will be made by the Treasury Department of the amount and price range
of accepted bids. Those submitting tenders will be advised of the
acceptance or rejection thereof. The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders,
in whole or in part, and his action in any such respect shall be final
Subject to these reservations, noncompetitive tenders for $400,000 or
less without stated price from anyone bidder will be accepted in full
a t the average price (in three dec ima1s) of accepted competitive bids.
Settlement for accepted tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on July 15, 1963, in Cat
or other immediately available funds or in a like face amount of
Treasury bills maturing July 15, 1963. Cash and exchange tenders wilt
receive equal treatment. Cash adjustments will be made for differenc(
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 pb
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 t'Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or Sta~,~
are exempt from all taxation now or hereafter imposed on the principl
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 bi1Js are originallr
sold by the United States is considered to be interest. Under Secth
454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the amount
discount at which bills issued hereunder are sold is not considered
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 reWn~
the difference between the price paid for such bills, whether 00
original issue or on subsequent purchase, and the amount actual~
received either upon sale or redemption at maturity during the t~~
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revis ion) and tbl
noti~e? prescribe the terms of the Treasury bills and govern t~e
cond~t~ons of their issue. Copies of the circular may be obtalned
any federal Reserve Bank or Branch.
000
- 3 -
and.
c~cha.n~c
:0
Cash adjustments Will 'be IIIB4e
tenders will receive equnJ.. treatment.
for differences bet'-lCen the p3.r w.lue of maturing bills accepted in exchange and
the issue price of the new bills.
The income derived from Trco.sury bills, whether interest or gain frOlll the I&lI
or other disposition of the bills, does not have any exemption, as such, and loll
from the sale or other disposition of Treasury bills does not have any
treotmr.:nt,
8f>
such, under the Internal Revenue Code of 1954.
spec1~
The bills are subJec
to estn.t.e, inheritance, gift or other excise taxes, whether Federal or state, but
a.re exempt from all taxation now or hereafter imposed on the principal or interen
thereof by any state, or any of the possessions of the United states, or by any
local toxins authority.
For purposes of
t8,~:8.tion
the amount of discount at vh1ch
Treasury bills are originally sold by the United states is considered to 'be h·
terest.
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 195&
the amount of discount at which bills issued hereunder are sold is not
con81~m
to accrue until such bills are sold, redeemed or otherwise disposed of,
and8~
bills are excluded from consideration as ca.pital assets.
Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need 1Do
clude in his income tax return only the difference between the price paid
~r.
bills, whether on originnJ. issue or on subsequent purchase, and the amount
act.
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, pi
scribe the tenns of the Treasury bills and govern the conditions of their.i_·
Copies of the circular may be obtained from any Federal Reserve Bank or ~
- 2 . f •• ·r',).·.. 11 •• 11,'
Smals, e. g., 99.925.
Fractions
~
not be used.
It is urged that tenders
1I&de on the printed forms and forwarded in the special envelopes which will
supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
rided the names of the customers are set forth in such tenders.
~1ng
Others than
institutions will not be permitted to .submit tenders except for their
account.
Tenders will be received without deposit from incorporated banks
trust companies and tram responsible and recognized dealers in investment
.rities.
Tenders from others must be accompanied by payment of 2 percent of
face amount of Treasury bills applied for, unless the tenders are accompanied
n express gua.ra.nty of payment by an incorporated bank or trust company.
Dmnediately after the closing hour, tenders will be opened at the Federal
rYe Banks and Branches, following which public announcement will be made by
freasury Department of the amount and price range of accepted bids.
Those
Ltting tenders will be advised of the acceptance or rejection thereof.
The
:!tary of the Treasury expressly reserves the right to accept or reject any
L1 tenders, in Whole or in part, and his action in any such respect shall be
Subject to these reservations, noncompetitive tenders for $20~0 or
L.
for the additional bills dated
IIltil maturity date on
~OO
or less for the
April 11, 1963
f»t
October 10, 1963
,(
91
days rema.1n-
«JQQ:
) and noncompetitive tenders for
6tWC
~-~
bills without stated price from any one
r will be accepted in full a.t the average price (in three decimals) ot
d competitive bids tor the respective issues.
&C-
Settlement for accepted ten-
in accordance with the bids must be made or completed at the Federa.1 Reserve
on
July
11~63
, in cash or other immediately available funds or
Like face amount of Treasury bills maturing
_...:JII.:Ul:~Y--=1r.tm:?::;1~90.li::6;;:;:o3_ _ _ •
Cash
TREASURY DEPARTMENT
Washington
July 3, 1963
FOR l}ll-lliDIATE RELEASE,
TREASURY'S WEEKLY BILL OFFERING
Th~
Treasury Department, by thi s public not ice , invites tenders for two mitt
of Treasury bills to the aggregate amount of $ 2, 100iiiO' 000 , or thereabouts, tor
cash and in exchange for Treasury bills ma.turing
Julv
&
1963
,in the _ .
of $ 2,10~8,000 , as follows:
91 -day bills (to maturity date) to be issued
X0dC
in the amount of $
1,300~0,000
, or thereabouts, represent.
ing an additional amount of bills dated
and to mature
October 10, 1963
July llbJ963
April
1~1963
,originally issued in the
QaX
amount of $
80l,~000
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $
eaaoc
800,000,000
July 12-L1r963
~
~~~T.~~~------
,or thereabouts, to be dated
, and to mature
January 9, 1964
--------~~~~--------
The bills of both series will be issued on a discount basis under competlt1ft
and noncompetitive bidding as hereinafter provided, and at maturity their
amount will be payable without interest.
t~e
They will be issued in bearer form onl1,
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 aDd :
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Ea.stern/~ time, Monday, JU~1963 .Tenders will not be received at the Treasury Department, Washington.
Ea.ch teadlfl
must be for an even multiple of $1,000, and in the case of competitive tendel'l ~
price offered must be expressed on the basis of 100, with not more tbB.n
\\-
/
'--
/
t}u'ee
TREASURY DEPARTMENT
July 3, 1963
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
$2,100,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing July 11, 1963,
in the amount of
$2,102,458,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of $1,300,000,000, or thereabouts,
additional amount of bills dated April 11, 1963,
mature
October 10,1963,originally issued in the
$801,369,000, the additional and original bills
interchangeable.
July 11, 1963,
representing an
and to
amount of
to be freely
182 -day bills, for $800,000,000,
or thereabouts, to be dated
July 11, 1963,
and to mature
January 9, 1964.
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, $50,000,
$100,000, $500,000 and $1,000.000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
Eastern Daylight Saving
;ime, Monday, July 8, 1963.
Tenders will not be
:oeceived at the Treasury De~artment, Washington. Each tender must
)e for an even multiple of $1,000, and in the case of competitive
enders the price offered must be expressed on the basis of 100,
rith not more than three decimals, e. g., 99.925. Fractions may not
Ie used. It is urged that tenders be made on the printed forms and
orwarded in the special envelopes which will be supplied by Federal
eserve Banks or Branches on application therefor.
IP to the cloSing hour, one-thirty p.m.,
Banking institutions generally may submit tenders for account of
ustomers provided the names of the customers are set forth in such
enders. Others than banking institutions will not be permitted to
~bmit tenders except for their own account.
Tenders will be received
tthout deposit from incorporated banks and trust companies and from
!sponsible and recognized dealers in investment securities. Tenders
:'om others must be accompanied by payment of 2 percent of the face
nount of Treasury bills applied for, unless the tenders are
companied by an express guaranty of payment by an incorporated bank
trust company.
D-896
- 2 Irrunediately 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 Departrnment of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary ~
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his ac tion in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
A ri1 11 1963
(91-days remaining until maturit¥ date on
O~tober 10, 1963) and noncompetitive tenders for $100,000
or less for the 182-day bills without stated price from anyone
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 Banks on July 11, 1963,
in cash or other irrunediately available funds or in a like face
amount of Treasury bills maturing July 11, 1963.
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 Federalo~
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 authoM~.
For purposes of taxation the amount of discount at which Treasu~
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 issu~
hereunder are sold is not considered to accrue until such bills a~
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 hereundel
need include in his income tax return only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and thU
notice prescribe the terms of the Treasury bills and govern the ,
condi tions of their issue. Copies of the circular may be obtained. 1
any Federal Reserve Bank or Branch.
000
RELEASI A. M. nWSPAP~lt5,
.1ul¥ {i'l l~J
'lu8sclal, ,full 9, i1963.
!~~:SuL'ts Jr: a.EAS~'al'S wEElLX BILL QF1t'IUlfJ
jo':):(
la."
The TrM8Ul"7 l)epar'tMnt annoUDOed
e"lI1111 tbat the tenders tor two ul'1".,
'tn_Iury bills, one eeries to be an additloaal i l l . of th~ btll. dated AprU ll, ~I
and the other eerie. to be dated Jul.,. ll, 1963, Which ...... oftered on Jul7 ), 111ft lit
at the l'ecleral a..erYe ;'~nka on Jul7 8. T.D&tra wre 1DY1t.d ror~l,)OO,OOO,ooo,.
tbel'Mbouts, of ll-da.Y bUla and [or $800,000,000, 01' the"SboUt8, of 18241 bUll.
l'he detaU. of the two eeriee are as follow.:
,iri:dl OF ACCf~P1'F.D
C 'Mr'HtLTI v~ 31D;>,
1<t2-da, tre... , bUlt
ntunDl .Jan,!£! 2. l~
9l-day Tn.IVY bill.
. .turi. october 10, 196)
App.rox. Equiy.
prioe
n.m!l
II1gh
'maul aate
3.121.
3.228.
99.184
99.200
Low
Aftra,e
).~:,
,
Pri_
~.l6l
98 •.315
}8.)46
t
J/
I
'Y
ppox. rqa;
Anaual -lit.
,,24ii
).)))"
'.2m y
bcept,lDg S ~l"8 t.otal1ng 11,0$0,000. )/ lnept.ing 2 Moden to\ll.inc 11,_
percent ot the IllIOmt ot 91-day bUll bid lor .t. ttle low price va. a.ctpW
)l pe....at of the 8IIl0UDt ot 18t-day billa bid t ... at the 1w prioe WU I e .
a/
'B'l.
T,)TAL
TEam~;R.S
APPLIED FOil A1W ACCEptED BY FEDUAL asMVI UISTRlCTS,
DlItr10t
Applied For
Boa\oa
Hew fork
•
PbUadelpbia
ClevelaDd
Rio.t.oDd
'),261,000
Atlanta
Chi.go
202,076,000
st. Low
Mu..apolll
UUU C1t'7
Dallu
.~ 1'rue1aoo
3$,943,000
20,344,000
31,161,000
28,007,000
118,827,000
$
,
AppliN. For
$
4,066,000
33,66),000 I
799,)82,000, 1,OlS,16),OOO
lb,7119,000 19,1.56,000
31,970,000.
].6,567,000
lb,662,OOO I
.3~776,ooo
3),261,000 I
142,016,000 s
11,9IsJ,OOO
t
)1,161,000
I
2O,lla4,ooo,
28,007,000
118,821,000
I
I _.
,.,066,11
607,91),.,kS6,U,S6T,.
),776,,,~1~
1J,9Wa,-
6,$74,000
'S,oWI,II
,0',_
2S,882,OOO
1O,9l7,000
)),920,000
1O,nT,-
$,oWL,ooo
d,-iII
n,9IO~
t2,1h6,BhS,ooo
1/ Iul.w:tu _$0,903,000 DOD..,.tlt!". teDduw • ...,w. .,
Ii'
?,S67,OOO
11S,9t.&4,ooo
AppW
'1,lOO,0I&S,000J/ 1l,?S7,876,ooo _,U6,
12)3,760,000 IlOIlOOllpet1t.1ve terac:t.n ~ at. t.hI a .." p prUI of"~
TOTALS
0/ laeludea
4),66),000
1,SS7,182,OOO
29,749,000
)1,970,000
14,662,000
AOcepted.
of" .
tJw aft1'aCll JlI'l.
OIl • -1IPOD 1u_ of the a. . l-s\h .ad tor _
. . . aaovat weated, , . ,...
t.~e bWa would pronde Tielda ot 1.2)', tor
fl-day billa, IlDd ).nl, t~
lb2-da3 DUla. 111\8"8t rAte. "JA O1lla an qt1llJtM 111 Mru . f ba&
t
ret1ll'B related to the ta. _0\JDt, of tba bUla paJable at. .t1ll1."1 ....., \...
aaount. 1DYeated ad their length ill ae\ul
of da,. relatecl too • ~,
In coatralt, yielw. on cert1t1e&te., ..tea, ad boads are oollputeci 1a , ... "
iDter&8t on the amount invested, and relate the Raber of daya rea.'"'' 11interest. payment period to the actual znaber of da71 in the period, n" - coaoounding U more than one coupon pu1"led 18 iaYol"ed.
t_
.""1'
di....
TREASURY DEPARTMENT
RELEASE A. M. NEWSPAPERS,
day, July 9, 1963.
RESULTS OF TREASURY·S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
.sury bills, one series to be an additional issue of the bills dated April 11, 1963,
the other series to be dated July 11, 1963, which were offered on July 3, were opened
,he Federal Reserve Banks on July B. Tenders were invited for $1,300,000,000, or
eabouts, of 91-day bills and for $800,000,000, or thereabouts, of 182-day bills.
details of the two series are as follows:
91-day Treasury bills
IE OF ACCEPTED
1B2-day Treasury bills
maturing October 10, 1963
t:TITIVE BIDS:
maturing January 9, 1964
Approx. Equiv.
Approx. Equiv.
Price
Price
Annual Rate
Annual Rate
High
99.211 al
3.121%
98.361 bl
3.242%
Low
99.184 98.315 3.228%
3.333%
Average
99.200
3.164% ]j
98.346
3.272% ]j
EI
na/ Excepting 5 tenders totaling $1,050,000;
Excepting 2 tenders totaling $1,905,000
11'8'1 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
,L TENDERS APPLIED FOR AND ACCEPl'ED BY FZDEHAL RESERVE
DIsrrIUCTS~
trict
,ton
l York
Applied For
Accepted
Applied For
Accepted
$ 43,663,000 $ 33,663,000
$
)~,066)'ooo
~ 4,066,000
1,557,182,000
799,382,000
1,015,163,000
607,913,000
~lade1phia
29,749,000
14,749,000
9,456,000
4,456,000
veland
31,970,000
31,970,000
16,567,000
16,567,000
~hmond
14,662,000
14,662,000
3,776,000
3,776,000
~ mta
33,261,000
33,261,000
7,567,000
7,567,000
~::ago
202,076,000
142,076,000
11B,944,,000
73, 94h,000
A Louis
35,943,000
31,943,000
6,574,000
6,074,000
, leapo1is
20,344,000
20,344,000:
5, lJi, 000
5, 041t, 000
~las City
31,161,000
31,161,000
25,882,000
25,882,000
~_as
28,007,000
28,007,000
10,917,000
10,917,000
~ Francisco
118,827,000
118 , 82?,OOO
__ -.2},920,OOO
33,920,000
!
TOTALS
$2,146,845,000
$1,300,045,000~1 $1,251,876,000
$800,126,000 ~
~ Q.udes $253,760,000 noncompetitive tenders accepted at t.he average price of 99.200
"!ludes $50,903,000 noncompetitive tenders accepted at the average price of 98.346
coupon issue of the same length and for the same amount invested, the return on
~hese bills would provide yields of 3e23%, for the 9l-day bills, and 3.37~, for the
llilf82-day bills. Interest rates on bills are quoted in terms of bank discount with the
~~eturn related to the face amount of the bills payable at maturity ratber than the
,\tI~lIlount invested and their length in actual number of days related to a 360-day year.
~n contrast, yields on certificates, notes, and bonds are computed in terms of
~lterest on the amount invested, and relate the number of days remaining in an
~~terest payment period to the actual number of days in the period, with sendannual
~)mpounding i f more than one coupon period is involved.
°
_'a
,
U.s. Balance of Payments
Residual Financing of the Deficit
1960-1st Qtr. 1963
(In millions of $)
1st Qtr. '63
Change
Not
1960-62
(Reductions in Seasonally
Adjusted
1962 Financing ~)
1960
1961
10 RESIDUAL FINANCING OF THE DEFICIT
-3,881
-2,370
-2,186
tl,695
-319
2. Increase in short-term official &
banking 1iab. and in foreign holdings of marketable U.S. Govt.bonds
and notes (decrease -)
t1,737
t1,764
t653
t1,084
t287
1-289
1-1,083
1-200
1-89
1-376
1-1,448 1/
1-681
1-453
1-995
-89
t2,144
1-4421/
t606
-135
-116
1-857
t1,533
1-626
1-17
1-890
t61l
-184
-17
,812
t32
-46
-33
1-111
3.
4.
Foreign private holders including banks & int'l & regional
organizations (excl.IMF)
Foreign official holders
5. Decrease in U.S. monetary reserve
assets (increase -)
6.
IMF position
7.
Convertible currencies
8.
Gold
1/
Revised.
1-1,702
TABLE 3
U.S. Balance of Payments. Selected Balances
1960-lst Qtr. 1963
(In millions of $)
A. Regular transactions
1. Regular recorded transactions, exclud- /
l
ing private short-term capital outflow2. Recorded domestic and foreign private
short-term capital
3. Unrecorded transactions
4.
BALANCE ON REGULAR TRANSACTIONS
B. S2ecial Government transactions
1. Non-scheduled receipts on Gov't loans
2. Advances on military exports
3. Sales of non-marketable, medium-term
non-convertible securities
4. Sales of non-marketable, mediu~-term
convertible securities
1/
Change
1st Qtr.
1960-62
1963
(Improve- Seasonally
1962
ment t) Adjusted
1960
1961
-1,792
-774
-1,925
-133
-915
~1,438
-683
-1,364
-905
-623
-1.025
t8l5
_-342
t42
-44
- 3.913
-3,043
-3.573
1-340
-917
1-48
-16
t668
1-5
1-666
1-470
1-618
1-486
1-25
1-23
1251
1-251
1-63
-.t350
5.
BALANCE AtB, excluding B.4
-3,881
-2,370
-2,186
tL695
-806
6.
BALANCE AI-B
-3,881
-2,370
-2,186
t1,695
-456
Differs from sum of line 12 of Table 1 and line 10 of Table 2 by the amount of
Export-Import Bank fundings of U.S. private short-term credits.
Though not a payment
abroad and therefore not inc1uded in 1ine 10 of Table 2, these fundings are already
~ef1ected as ~eceipts o f private short-term capita1 in 1ine A.2 of
th_~_£o~_. _1&0 h e ~~c1~ded a s Go~er~e~t o~tp_~e~ts ~n 1~ne A.1.
~a62.
93;
~963
1.t
this
table
Dur~ng
quarter.
B.
the
and must
per~od.'
u.s.
Balance of Payments
Commercial Surplus on Goods and Services
1960-1st Quarter 1963
(In millions of $)
Change
1960-62
(Improvement .,)
1st Qtr.
1963
Seasonally
Adiusted
1960
1961
1962
1-19,459
,,19,913
f20,479
,,1,020
1-4,998
t 1 .919
.,2,237
t2.345
t426
t613
3. COMMERCIAL MERCHANDISE EXPORIS (1-2) "17,540
4. NONMILITARY MERCHANDISE IMPORTS
-14 1 723
5. COMMERCIAL TRADE BALANCE
1-2 1 817
f17,676
-14 1 497
1-3.179
f18,134
-16 1 145
1-1 1 989
f?94
-1 1 422
-828
1-4,385
-3 1 985
_/400
1. Nonmilitary merchandise exports
2. Less exports financed by Gov't.
grants and capital
6. Private investment income
7. Other nonmilitary service receipts
8. Less services financed by Gov't.
grants and capital
12,873
1-4,307
13,464
1-4,532
13,850
f4,801
1-977
1494
/1,005
f1,180
£288
t,±-30
1538
1-250
f160
9. COMMERCIAL SERVICE EXPORTS (6f7-8)
10. NONMILITARY SERVICE IMPORTS
11. COMMERCIAL SERVICES BALANCE
1-6,892
-5 1 434
1-1.458_
1-7,566
-5 2 436
1-2,130
f8,113
-5 1 791
ib,l22
1-1,221
-357
1-864
f2,025
-1 2 447
/-578
1-4.275
1-5,309
14 311
f36
f978
12.
COMMERCIAL SURPLUS
1
TABLE 2
u.s.
Balance of Payments
Balance on Government Assistance and Long-Term Capital Accounts
1960-lst Quarter 1963
Change
(In millions of $)
1960-62
(Improvement f)
1961
1962
1960
1. Military expenditures
-3,028
-2,934
-3,048
2. Military cash receipts
,11,143
,1320
,1398
(,IS)
(of which advances on military exports)
(1-470)
( -16)
30 Gov't. grants & capital outflows, gross
(-3,405 ) (-4,056) (-4,281)
a o Less transactions l?volving no immediate dollar outflo~
(-2,298) (-2,940) (-3,211)
b. Dollar payments abroad (3 -3a)
-1,107
-1,116
-1,070
4. Repayments on U.S. Gov't. loans,
excluding fundings by new loans
,11,182
,1585
I- 1,201
(of which non-scheduled repayments)
(1-48)
(1-668)
(1-666)
5. U.S. direct and long-term portfolio
-2,609
investments abroad
-2,544
-2,766
6. Foreign direct and long-term portfolio
,1430
,1271
investments in the United States
1-466
7. Remittances and pensions
-672
-705
-736
8. Changes in Gov't. liabilities 2/ 3/
1-248
1-1
*
(of which sales of non-marketable, mediumterm non-convertible securities)
(::2
{:1
(1-251)
9.
BALANCE, incl.spec.Govt.transaction~/
-6,035
-5,299
-4,756
-6,067
10.
BALANCE, exc1.spec.Govt.transactionsl/
-5,972
-6,143
*1/
~I
1-823
-741
(f486)
f204
(f23)
(-876)
(-1,082)
( -913)
f37
(-856)
-226
f597
f128
(f618)
(f25)
-222
-1,013
-159
-64
-217
f247
f63
(f251)
71,279
-76
f28
(f63)
-1:774
-1,885
Less than $500,000.
Comprises principally U.S. merchandise and service exports, refundings of loans of U.S.
Govt. and private U.S. lenders, & subscriptions to int'! institutions in the form of
non-~nterest
20.1
1-20
1st Qtr.
1963
Seasonally
Adjusted
Exc1udes
E~c~~d~ _
bearing notes.
1~ab.
__ 1 _ _
assoc~ated ~~th mi1itary
~f
~~~-~Qrk~tab1e.
transactions
~edi~~-te~.
and ~ith
co~~ert~b1e
Gov't.
Go~.t_
assistance
S8cur£t£e&.
operation ••
- 22 -
by busine~smen of the dynamic stimulus to investment and consumption
inherent ~n the tax program. Should it fail of enactment , the frust ra·
tions of these expectations might \o/ell arrest the progress and invite
a recession. Moreover, this progress, promising increased revenues
for the fiscal year 1964 over those earlier estimated in the President'
January budget, complemented by reductions in projected appropriations!
by the President and the Congress, should ease the concern of those
who were troubled by the size of the deficit as originally projected
for fiscal 1964.
The passage of the tax program, by adding to the momentum of an
advancing economy, offers the greatest opportunity in years to move
our economy to full employment. Despite our recent progress, the
rate of unemployment has remained undiminished; last month it was
slightly higher than in June a year ago. \Vhile our labor force increased over the year by 1,200,000, only 800,000 new jobs were
created. Yet, the Nation is a year closer to its responsibility to
provide Hork for the floodtide of youth born in the aftermath of
l.lorld Par II. Twice as many jobs must be created in each of the
remaining years of the Sixties as have been created in the last two
years of an expanding economy if we are to meet the mandate of the
Employment Act of 1946.
The boiling over of racial tensions witnessed in recent months
should not impair the priority of the tax program on the legislative
agenda. For \o/ho can doubt that an overriding element in the quest
for equal o?portunity and in the frictions resulting therefrom is the
need for jobs and the chance to provide a better standard of living,
housing and education for Negro and Vlhite alike. Discrimination is
not likel)' to ':>e dissipated by pushing V1hites out of jobs for Negroes,
but rather by creating adequate job opportunities for both.
And, finally, for reasons I have analyzed briefly in my statement,
the enactment of the tax program is central to our basic objective of
achieving balance in our international accounts and maintaining
confidence in the dollar. A vigorous dynamic and growing American
economy is the necessary backdrop for achieving the sharp competitive
edge that will increase our trade su~)lus -- for reaching demand and
profit levels that \-1ill invite the increasing investment that will
bring our t,vo-way capital flows into better balance -- for assuring
our friends abroad that putting dollars to work earning interest and
profits is preferable to exchanging them for gold.
To meet both of our national economic objectives -- growth and
full employment at home, and a balance in our international payments .and to meet them simultaneously, within the framework of a market
economy, clearly requires further effort. We cannot expect our
problems to yield easily, but a solution is within our grasp.
To those who urge that balance of payments be given the top
priority, as ,.;ell as to those \.]ho urge that domestic growth be an
exclusive preoccupation, I can only reply -- we cannot achieve one
Hithout the other -- we must achieve both if we are to be true to our
national purpose and our international obligations.
- 21 -
the effects on domestic demand, if' need be, by restlict1ve fiscal ....ure8.
And finally it would be helpful if these countries would continue to
sha~e more
in the burdens of providing for our cOllDDOn defense 1Dd.
or assiGting in the developme·,t of' less fortunate areas of the world.
:tilly
Balance of payments surpluses have very real advantages for the
Western ~~opean countries, but they create some problems as well.
In particular, they contribute to inflation in the~ co~tr~es, .and~8
inflatiomry impact is not limited to the purely fl.nancl.al :Lmphcations
of' the Gurplus. A balance of payments surplus is inherently infiatiOllary,
when in a time of general labor Shortage and pressure on available
resources, more goods and services are sold outside the econom;y than are
imported.
As a result of pressures generated in part by these sll,",luses, CQI.
bined with a general shortage of labor, wages and prices in Europe have
been riSing for the past few years far more rapidly than in the United
States, unit costs have been increasing, and profit margins have decUnri.
This offers us an opportunity to com.pete more effectively. But, it wouU
be foolhardy to expect European authorities to sit ba.ck, and permit WI
inflation to proceed unchecked.
European Governments are already exerting themselves to restrain VIiI
increases through wbat has come to be known as "incomes" policy. However,
the natural inflationary forces are so powerful that their efforts have
only succeeded in somewhat moderating the teJll.PO or the inflationary
process. But should this process proceed to a point wber~ European COIlDtriIII
find their balance of 'l)8.ylIlE!nts to be endangered, we can expect them to
take strong acticm irres.pect;ive of the domestic consequences.
However,
a general disappearance 01' European balance of payments surpluses would
almost inevita.bly mean the Simultaneous disappearance of' our defie1t.
Meanwhile, the continuation of this moderate inflationar.y tendency in
Europe gives us an opportunity to bring our own payments into balance, tbIII
lay-ing the essential groundwork for the strengthening of' the whole inter·
na.tional payments system.
But this opportunity must be seized. And lie
must be prepared to take those further actions that our needs require. rvr
it is clear that further action and renewed impetus are needed to iDgIrote
each of the major sectors of our balance of payments -- our trade bLUI~,
Government expenditures abroad, and the capital account.
Tbe Need for Further Action
In view of the broad authority and influence of this Committee 00
t.he economic- P9licy of the Congress, I should like to take advantage
of this opportunity to stress with all the conviction I can summon the
indispensable importance at decisive action b.Y the Congress to enact
during this session a program of tax reduction and revision along tbe
lines generally proposed by the PreSident at the beginning of this year.
The continued progress in our economy since that time, as:measured
in Gross Natiooal Product and other indicators, serves
to accentuate rather than diminish, the desirability and feasibili~~
that forward step. This progress in some part is built on expectatiOll
by the increase
- 20 -
realistic. It fails to recognize both the practical difficulties'Of n.
versing the current pressure of savings flows seeking investment outlets
in this country, and the great hazards for the domestic econo~ implicit
in any such attempt.
My second point concerns our position as world banker, and your
question concerning the applicability of exchange controls on capi~
flows to our 5i tuation. Exchange controls would directly violate one
of the precepts upon which our whole effort is predicated -- that, in
our economy, we must rely primarily upon decentralized decision ~ns
by millions of individuals and businesses responding to market forces.
Government, to be sure, must accept the responsibility for influenc:1ng
these market forces in ways consistent with national objectives, but
always without attempting to direct individual transactions.
Moreover, a partial system of exchange controls would soon break
down as :f\mds flowed through uncontrolled channels -- spurred by the
fear of still further controls. In the end, a complete system of
exchange controls would be required. This would seriously prejudice
the position of the dollar as the world's chief reserve currency,
would tend to shrink world liquidity and reduce the volume of world
trade, thus bringing in its train grave dangers of a world-Wide
economic recession. For these reasons, the institution of' exchange
controls, even though supposedly applicable only to certain types
of transaction, is not a practicable or acceptable policy for the
United. States.
Instead, we must continue to meet our special responsibility as
world banK?!'. Essentially, this is tc pursue policies that assure
maintenance of the stability of the dollar free :from exchange controls.
In return, foreign countries have freely and willingly provided us
with huge resources -- aggregating some $2l~ billion in liquid dollar
balances alone. The rise in these balances of over $15 billion since
1949 has financed 5~ of our cumulative deficits over the past 13 years.
Had it not been for our position as banker to the world, this credit
would not have been extendp.d to us, and we would long ago have been
faced With the hard necessity of curtailing imports, reduCing foreign
inve E't",:,!!p.nt , and cutting into the substance of our defense and aid
spending abroad.
The Surplus Countries
In asseSSing the outlook for our balance of payments, we must
also look at developments in the surplus countries. The surpluses
that are the counterpart of our payments deficit have for the most
part been accruing to the other industrial countries of continental
Western Europe. Orderly and constructive elimination of payments
imbalances reqUires that these surplus countries accept a responsibility for pursuing policies which will reduce their surpluses, thus
paralleling U. S. efforts to eliminate our deficit. These countries
should conL~nue to eliminate trade barriers which discriminate aga1D~
our exports. In addition, it would be appropriate for them to work
toward lower interest rates, particularly long-term rates, offsettiDg
- 19 substantially below those in Europe -- except only for SWitzerland and
the Netherlands -- are largely responsible for the increaSing volume of
foreign long-term borrowing in our markets. Thus, while there is
evidence on both sides regarding the sensitivity of long-term POrtfolio
investment to interest rates, it seems clear that interest rates are
not by any means the only factor involved.
The ready availability of American capi tal and our well-developed
market facilities are also important. As I pointed out in Rome over a
yea.r ago, our balance of payments problem limits the amount of longterm port1'olio capital which we can prudently supply to others. It 1s
essential for other industrial countries to develop their own capital
markets so that they can do a more complete job in meeting their own
requirements. While the last year has seen some progress in this
direction -- most notably in Germany, Italy, and perhaps now in France _.
it has not been adequate and the demands on our markets are still muCh
too hea.vy. Mr. Roosa will be glad to fum! sh you with fuller information on the state 01' the various European capital markets and on the
progress that has been made during the past year.
Looking at our payments as a whole, it is clear that if we are to
achieve balance there must be a substantial reduction in the net outflow
of long-term portfolio capital as well as a reduction in the out1'low
of short-term funds. One means of approaching this objective is to see
to it that our capital market is utilized to mobilize foreign savings
to the maximum extent possible -- that. is, we need to export securities
as well as goods, and to take advantage of the interest of foreign
investors in new dollar issues. We have noted that a large part of the
extensive recent activity in new foreign issues has been carried out
through priVate placements. These private placements, many of which
are Canadian issues, normally foreclose the possibility of foreign
participation that always exists in a public offering. We have urgentJ.¥
invited the financial community to explore this problem further in the
hope that it will be feasible for them to make wider use of publiC
offerings.
Capital Flows and Our Position as World Banker
On the subject of longer-term capital flows and interest rates, I
would like to make two general points of basic importance. First,
purchases of foreign securities are a very small i'raction of the very
large total of $50 to $60 billion that is annually placed in mor~s
and other long-term securities in this country. With confidence in
price stability restored, the Willingness ot savers to place money at
savings institutions and to commit funds for longer-term investment is
groving, and interest rates have been reflecting this increase in
savings. Long-term interest rates in this country may well respond
over time to groWing investment demand in the normal market manner.
However, the approach taken in some quarters abroad that a drastic
effort should be made by public policy to raise the entire structure
of long-term interest rates by a sizable amount in an effort to sloW
down the outflow of long-term capital does not seem to me to be
- 18 2.
Foreign currency claims of banks and non-financial concerns
on Canada and Europe;
3. "Other" bank-reported short-term claims on Canada and
Europe; and
4.
Errors and omissions for all areas combined.
These ~our items accounted for between $1.2 billion and $1.4 bi1l1~
of our over-all balance of payments deficit during each of the three
years 1960 - 1962 When interest rate differentials favored Canada and
Europe.
In 1959, on the contrary, when interest rate differentIals
were favorable to the United States, these same four items accounted for
an inflow of funds tbat reduced our over-all deficit by some $500 111111011.
A si zeable part of this difference may be attributed to the interest rate
factor.
Tbe lew York. Federal Reserve Bank study suggests tbat a reasonable
reduction of the current differential in short.. term rates would be likel1
to improve our annual balance of ~nts by $500 million or more. In
addition, this study shows that private foreign holders of dollars are
strongly influenced by interest rate differentials. This would not affect
our balance of payments figures but W011ld substantially reduce the gold
drain, since private fore1gn holders would retain their dollars in
larger amounts rather than turn them over to officJ.al holders who alone
have the right to convert them into gold.
One more piece of confirming evidence is available. Since last fall
a .few large bankS have reported to the Federal Reserve on a confidential
basis the totals of their short-term transactions involving transfers to
Canada and the U.K. on a tully covered basis.
Such transfers are clearly
interest indu.ced and have continued at a substantial pace throughout the
first six months of this year. The saDlPle, which makes no pretense of
being complete, shows over $220 million of such transfers so far this year.
For all these reasons, we are convinced that substantial amounts of
shOrt-term flows are sensitive to interest rate differentials. This
opinion is also fully supported by the unanimous views of those here and
abroad who actively deal 1n foreign exchange on a daily basiS. Mr. Roosa
will be glad to answer in :fUll any questions you may have on this hiShlY
important, but rather technical, subject.
In the case of long-term portfoliO investment, on the other hand, till
effects of interest rates are much less clear. Such studies as have ~n
made, mostly by various Federal Reserve banks, fail to show any consistept
correlation between the volume of United States purchases of fOreign loDiterm securities and existing long-term interest rate differentials.
.
However, these studies do show that whenever long-term rates in the Unitel1
States are relatively high, as in 1959, portfolio purchases tend to decrease. In spite of these inconclusive findings, European authorities
are categoric in their views that our present long-term rates, whicb are
I am aware of the fact that the only detailed study hereto
submitted to you -- that made last summer by Professor Bell -interpreted as indicating a lack of interest rate sensitivity i
all short-term capital movements. This is an area that has unt
recently received comparatively little study. This is perfect]
standable since the rree and large scale movement of short-ten
datef only from the end of 1958, when the currencies of most 0:
major industrialized countries became convertible.
The Treasury has, of course, had a close interest in this
some time. In order to increase the availability of informati
ing capital movements, and thus facilitate improved understanc
knowledge, the regular reporting forms for banks and non-finar
tutions have been modified and improved. A supplementary fon
financial institutions was introduced 1ast fal1 and revised ml
hitherto unavailable information from these new forms.
In a further effort to broaden the content and coverage of our
balance of payments statistics and to improve their presentation, the
Director of the Bureau of the Budget has recently appointed an eminent
committee of business and academic economists to study all aspects ot
our balance of payments statistics. This committee is chaired by Dr.
Edward M. Bernstein and is due to file its report next spring after a
full year of study.
Paralleling our work on the new reporting for.ms,~ also undertook
early last summer a staff study to examine short-term capital movements
as fully as possible with theavailable data. We engaged an outside
conSUltant to assist us -- Professor Peter Kenen of COlumbia University.
ThIs study was completed last fall, and indicates a clear sensitlvityof
certain short-term capital movements to interest rate differentials. We
will be glad to make this technical study available to the Committee it
you so desire.
Since the completion of this staff study, the sensitivity of short·
term capital flows has been confirmed qy a detailed investigation ~ch
has just been completed by the research department of the Federal Reserve
Bank of NeW York. This report, which the Bank has authorized us to
furnish to your COmittee, attempts -- successfully, in my opinion -- to
reconcile the apparent divergencies in the Treasury-sponsored and ~ll
studies.
It poin~out that short-term capital movements include a vide
variety of capital flows, some of which are sensi ti ve to interest considerations and others not. It further shows that those types of floW
in which our study round a close correlation with interest rate
differentials are precisely the same flows for which Professor Bell~S
unable to find any correlation with trade movements.
The types of short-term flows which these studies indicate are
sensitive to interest rate differentials includethe following:
1.
Europe;
Dollar claims of non-financial concerns on Canada and
- 16 Capital Flows and Interest Differentials
In addition to developing facilities for tioancing our deficit
~
working toward a stronger payments system, the United States has OVer
the past tw years partiCipated to an unprecedented degree in active &ad
extensive debate, discussion, and consultation with the other industrial
countries on national economic policies affect1ng mutual internat1~
objectives. This bas been particularly true with respect to factors
affecting the in~ernational movement of long-te~ and short-term eapi~.
It Is evident in these discussions that European financial circlel
:reel that the di:f'ferentials between the higher interest rates Preva:l l1ac
in many West European cOW'ltries and those in the United States are CODtri but1ng importantly to the outward flov ot cap1 tal :from this COUDt17,
and that these differentials should be narrowed. For our part, we haft
recognized that "there is a considerable sensit1vity of movements or shortterm capital to interest rate levels in the various leading countries -a sensitivity that has repeatedly been confIrmed by those 1n close touch
vith the market, and is often observable in reported data, despite the
variety 01' other influences at work at any time.
J would like at this point to address IIIJself in same detail to JOUr
question relating to the degree of sensitivity of short-ter.m capital
movements to interest rate differentials.
Our conclusion, after studl1118 this matter intensively, is that there are substantial SUlllS of liquid
funds that are potentially sensItive to cl1fterentials between interest
rates here and interest rates in the BuN-dollar market, and also bet_
rates here and those on British and Canadian Treasury bills and on otber
short-term paper in those as vell as 1n Continental European JDODe)'
markets. This is particularly true when the torward excbange rates fail
to o:N'set most of" the actual interest rate d1tterent1al. J'1na.ne1ng of
third country trade through acceptances also appears rather seusitiw,
while bank loans to offiCial borrowers or preferred customers and
financing of American exports appear DUch less so.
DeS})1 te much that bas already been accomplished through coo.peratift
action, both in keeping our short-term. rates at 80IIIeVbat hlgber levels d
1n keeping foreign money market rates as low a8 practicable, exi.tine
differentials are still causing substantial outflovs of the more senslt1ve
types ot capital. Mu.ch of the outflow in April and May, tor instance,
appears to reflect increased deposits of American firms in Canadian
banks and a sharp 1ncrease 1n American acceptance financing of trade
between foreign countrIes.
To illustrate the probleJll, the pull ot tbe
Euro-dollar market -- with three-month money returning Just under ~ in
London -- is apparent; prevailing yields tor roughly comparable tnea 01
money market instruments in New York are around 3-1/4fI,. While existiDl
differentials With respect to most of the important fore1gn markets are
not large, it is important that we coutinue to do all that is reason&ble
to narrow them turther in order to reduce significant outflows, &lid
perhaps in time reverse the direction ot some ot these flows.
- 15 -
This ~roblem has already been studied very carefully by your mm
Subcommittee and I hope that your studies continue. Similar stUdies
are in process, of course, within the Administration, as well as in ~st
of the other leading countries and international organizations.
The path ahead is not clear and much further work will be
required: but experience with the even more difficult problems follmnng
Horld War II gives one confidence that as the nature and magnitude of
future needs become clearer to most of us, ways to cope with those needs
can and viII be developed. The international payments system has
evol ved remarkably well since the days of Bretton Woods, and this process
of evolution toward a stronger system has certainly not been complet~.
But as I have already noted, in considering the long-run need for
improvements in the international payments mechanism, we must avoid ~e
error of thinking that the solution to our present balance of payments
difficulties can be found in such improvements. No international
payments system will relieve cOWltries of their individual responsibilities
to achieve balance in their international payments over a reasonable period
of time. It is, of course, most important that there be an adequate IImOUIIt
of reserves, suitably distributed, to allow a reasonable period. of time
during which the adjustments needed by any particular country can be lIIIde.
The United States is prepared to work with other countries to stren~~n
and improve the international payments mechanism in \:.his direction. ~t,
such efforts will be doomed to failure if other countries feel that we
look upon them as a means of avoiding the steps we ourselves must take
now to bring our payments into balance.
Nor can we afford to delay in the illusion that some system of
flexible exchange rates may somehow offer a painless and acceptable metbOO
of adjustment. Visionary proposals of this kind, which I know have been
brought to your attention from time to time, ignore the basic fact that
the VTorld payments system today - - and with it the prospects for expanding
trade -- rests upon the interchangeability of gold and the dollar at a
fixed price, and confidence in the stability of other leading currencies.
A regime of flexible rates among the major trading nations has never,
through the years, successfully met the test of use and experience. ~e
cost in greater uncertainty, disruption of the highly integrated worM
trading corrnnuni ty J and a lessened flow of trade and investment vould be
far too high a price to pay. The United States, together with every other
leading nation, is for that reason fully committed to preservation of the
system of fixed exchange rates as the essential underpinning for freely
flowing and expanding trade. That commitment is embodied in the Bretton
Woods Agreements.
- 14 -
in currencies other than U. S. dollars, importantly bolstering the
ability of the Fund to meet sizable drawings without exhausting its
supply of usable currencies.
Thus, bilateral and lnultilateral facilities are playing
compl~~entary roles in meeting our needs -- and the needs of other
nations -- for liquidity and credit resources. Because of the particUlar
nature of the problem facing us, our main effort over the past year has
been to strengthen these facilities through bilateral arrangements ~t
could be selectively tailored to meet immediate needs.
Our deficits have a counterpart in surpluses in other countries,
but these surpluses bave not been evenly distributed, nor are their
size and location predictable. With one or two exceptions, the
surpluses have tended to concentrate first in one country and then
another. The countries which happen to be experiencing these surpluses
at a Si yen time are also those which are accwnulating dollars, ofter.
beyond their immediate needs, thus creating pressure to turn these
surplus dollars into gold. The flexibility of bilateral. arrangements
makes them particularly appropriate and useful in redUCing these
pressures, inasmuch as they can be directed more precisely to the po1Dt
of need. Moreover, certain techniques -- repayment of debts, for
instance -- can only be arranged on a bilateral basis.
Multilateral arrangements, on the other band, are more useful -I should say essential -- whenever it becomes desirable or nece8~
to strengthen the international payments system as a whole by adding
to international liquidity generally. As the President stated in
addreSSing the Annual Meeting of' the International Monetary Fund and
t.he ~Yorld Bank in Washington last year, and as he confimed last month
in Europe., the Uni ted States welcomes con tinuing study of methods to
improve fu~ther the functioning and stability of the international
monetary system. The financial ministers of the ten countries
participating in the special IMIi' borrowing arrangements also stated last
September that they were ready to contribute to such studies. Clearly,
it is important, even while the pressures of our own imbalance are still
upon us ~ to examine carefully all manner of proposals that may be useful
to us, and to the world, once the current imbalance has been corrected aad
new problems emerge. But these global plans cannot and sho1]ld not be
regarded as specific correctives for our present problems. I should also
point out that-. there is widespread agreement that no general shortage of
international liquidity is evident at the moment. That is partly because
of the special resources arrangements in the IMF, in the establ1smmmt
of which the United States took the lead during 1961 and early 1962.
But it also seems clear that the time will come when new facilities or
arrangements will be required to ensure for the future an adequate over~ ,
growth in monetary res erves and credi t availability.
- 13 -
No less significant are satisfactory arrangements for the
residual financing of the deficit, and ample protection for the do~
against speculative pressures or other emergencies. In developing
facilities for these purposes, we have also been alert to their
implications for longer-range strengthening of the international
monetary and payments system. I shall touch only briefly on our actual.
operations in this area, but Under Secretary Roosa. will be prepared to
discuss them extensively.
Prepayment of debt has reduced the deficit by about two-thirds
of a billion dollars in each of the years 1961 and 1962. These
payments have been mutually beneficial. They provide a capital inflow
into the United States that is definite and final. From the point of
view of the surplus country, these repayments, eliminating holdings of
dollars that at the time are excessive, avoid a future stream of payments
tba t might fall due at less opportune times. When there are trad1 tional.
or other pressures to maintain a particular ratio of gpld to dollar
holdings in official reserves of some countries, these debt prepayments
also serve to avoid unnecessary movements of gold.
The sale of medium-term Treasury securities to foreign monetary
authorities can serve somewhat similar purposes, although these transactlons
do not have the permanence of debt prepayment. A special feature of theBe
securities is that they can, where both countries consider this approprta~,
be denominated in the currency of the lending country. These securities
thus provide surplus countries a third alternative to gold or dollardenominated securities in making use of their dollar accruals. The fore1811
currency issues must still be considered experimental, and their future
depends in large measure upon the response which they evoke from the
leading official holders of dollars. But, there are $630 million of these
special foreign currency medium-term issues outstanding at the present
time. Without the introduction of this instrument, transfers of gold
into foreign reserves would probably have been substantially higher.
In addition to these arrangements, the Federal Reserve has further
developed its network of reciprocal currency agreements, providing forei~
exchange facilities to either pa.rty if needed to meet temporary strains.
The aggregate of these "swap" facilities now totals $1,550 million.
The Role of Bilateral and Multilateral Arrangements
All of these bilateral arrangements are further buttressed by the
resources of the International Monetary Fund, which can provide credit in
case of need on terms of 3 to 5 years. The resources of the Fund were
supplemented during 1962: when the necessary ratifications were comp~~
to establish the special borroWing a.rrangement agreed to by ten of the .
leading industrialized countries. This arrangement makes up to $6 biU10r: i
of supplementary resources available to be used, if needed by any of t~ .
partiCipating countries, to meet threatG to the stability of the inter·
national payments system. Of these resources, $4 billion are available
Our programs aimed at these objectives have already been greatly
expanded, and we anticipa.te that the results will be cumulatively
favorable as more and :nore American firms are brought into contact V1th
export markets. HOllever, I might note at this time that the House of
Representati ves just last month failed to approve the appropriations
requested by the Department of Commerce to strengthen these efforts w
stimulate our exports. I earnestly hope that the comparatively small
<.mount of funds involved, less than $6 million in all, will be restored
by the Senate and included in the final appropriation bill -- for it
surely will be returned to us many times over in additional earnings fnl
exports. Failure to approve these funds can only ensure a smaller trade
surplus and a larger deficit in our balance of payments.
Effective action in these three areas -- tax reduction, price ~
cost stability, and an intensified export effort -- provides the core
of our longer-run program to restore balance in our international
payments. In addition, in view of the trenchant analy'sis in the March
report of this Committee, I need not emphasize here the importance of
su~cessful trade negotiations to assure that foreign markets are open to
our products, and I will not discuss this problem further today.
But these measures will necessarily require time to take effect
through the working of market forces; their impact on our 1nternat~
payments is as yet insufficient; and it would not be possible or prudent
to rest on these actions alone.
More Direct Government Action to Reduce and Finance the Deficit
This 1s why we have undertaken a. great variety of more direct actloas
that promise prompt results. While some of these measures will be of
value for years ahead, others proVide only temporary benefits, or would
not be desirable as permanent programs. But all of them. are urgently
necessary today to achieve a. reduction in foreign expenditures, to provide
addd1t10nal foreign receipts, or to facilitate the financing of our
defic its in a. manner which will strengthen rather than distrub the world
payments system.
As I suggested earlier, methods of reducing foreign exchange costs
in the two largest areas of governmental foreign expenditures -- m1l1tar1
spending and foreign aid -- have been pursued vigorously. Bu.t further
progress must and will be made. As we review these programs intensiwl1:
opportunities for additional saVings are being found, without jeopard!ziDB
essential. national security objectives. In addition, we are subject1rJg
the foreign transactions of every other Federal agency to a periodiC
screening and justification procedure centered in the Dlreau of the BldV.·
While the total of these expenditures is not nearly so large as thOse tor
defense and aid, moderate further balance of payments savings will be
possible in this area. New intemational marketing procedures by the
Department of Agriculture -- as, for example, the new cotton auction
program -- can also be expected to make a significant contribution.
-
l.l. -
circumstances, with our economy operating well below its capacity and
with high unemployment, the stimulus of the substantial tax cut we have
recommended would not be inflationary. Consequently a tight credit POliey
designed to slow consumption and cOWlter inflation would appear to be
most inappropriate in the present setting. '!'he relation of a tax cut
to monetary policy 1s quite different.
As I will point out in detail later, there is strong evidence that
a substantial portion of short-term capital flows are markedly sensitive
to interest rate differentials. Because of this fact, and in the light
of the size of our continuing over-all balance of payments defiCit, we
must recognize the possibilitY' that the monetary authorities may at SOllIe
point feel obli~d to take further action designed to influence those
rates that are particularly significant for our balance of payments. A
tax cut would be most helpful in offsetting any possible adverse effect
of such action on our domestic economy. To put it in a nutshell, my
view is that a tighter monetary policy will not be required by the results
of a tax cut, but that a tax cut would prove most helpful should the
monetary authorities feel obliged to take further action for balance of
payments reasons.
Tax reduction to improve our industrial efficiency and our baUmce
on international investment flows must be paralleled by vigilant maintenance of wage and price stability. Our success in holding costs and
prices steady during the current expansion has been gratifying. Over
recent years, the annual rate of wage increase in manufacturing bas dropped
steadily 7 and for the past two years bas been slightly below the yearly
gains in productivity •. That in turn has made possible a small decline 111
wholesale prices since 1960. Nevertheless, the major test stUI lies
ahead, as our economy returns closer to its full potent1al. That is why
we have placed so much emphasis on the wage/price guideposts develOped by
the Council of Economic AdVisers as an ap:pr6priate benchmark for evaluatlll
the longer-run behavior of wages and prices -- recognizing at the same tile
that any tendency for productivity to exceed wage gains, when accompazded
by a parallel fall in prices, would help speed the needed process of
adjus tment.
Finally, to be sure that our improving competltive pos1 tion is
translated as quickly and fully as possible into ~h in our trade
surplus, we must also provide all appropriate governmental stimulUS &lid
assistance to the actual process of exporting. Many more American
bUSinessmen must be made aware of the large and profitable opportunities
offered by foreign markets. Tbey should be assisted with all the market
information that government cal1 provide, and with intenSive official
promotion of American products abroad. And they must continue to be
provided with ample facilties for export financing, fully comparable to
those available in the other industrialized countries.
- 10 racilities at home rather than abroad will increase. Foreigners ~
likely to respond to the increased opportunities as well) and Securities
of U. S. fims. attracting the increasing funds of foreign savers, coUl.4
become one of our best selling exports. At the same time, the huge
flow of savings generated by American citizens will more readily find
employment within our own borders, reducing the present spillover of
surplus savings to other markets.
The ability to employ our savings fully, and to attract investment
from abroad, fundamentally rests on the grovth and profitability of our
economy. There are indications that profit margins are nov shrinking 1n
Europe, under the pressure of rising costs. If we can improve the gl"OVt,h
prospects and profitability of our economy, this should be a powe~
factor favorably influencing the long-tenn capital account in our
balance of payments.
The past year has seen important progress in reducing the tax
incentives for direct investments abroad by .American business. One of
the substantial tax advantages of foreign investment bas been the more
favorable treatment of new investment through special tax cred1ts 8Z1d
a.~~p.lerated depreciation.
The investment credit enacted last fall, whIch
vas limited to domestic investment, and our accompanying administrative
reform of depreciation have gone a long way to remove this diffez,ential.
Enactment of the corporate tax reduction recormnended by the President
will be a substantial further step in equalizing the tax status of
investment at home and abroad -- in fact, with a reduction of the corporate
income tax to 47 per cent, the tax incentive to foreign investmE!lt in JlX)st
industrial. countries as compared to domestic investment will have been ,.,
reduced as to be only a very minor element in business decisions to invest
abroad.
The Revenue Act of 1962 also reVised our laws so as to strike bard
at the use of tax havens for purposes of tax avoidance. While it is
still much too soon to be able to quantify the results of this action in
balance of payments or revenue terms, there is evidence of declining
interest in the establishment of new subsidiaries in tax haven countrl~.
In conSidering the relationship of our current tax program to the
"oalance of payments, it is also important to point out that tax reduCt10D
will accomplish a needed redistribution, between fiscal and monetary pollcy.
of the responsibilities for encouraging bUSiness expansion. Readily
available cred1 t is of little avail if the incentives are weak for us:1Dg
that credit to make new investment. But, when incentives to invest are
strong, minor changes in interest rates may go relatively unnoticed, aDd
the monetary authorities can have more freedom to influence those rates
that are s igniflcant in terms of international capital flows.
You have inquired specifically as to whether a tax: cut would requi1'C
a tighter monetary policy to prevent a deterioration in our iDternat~
accounts. To th1s in my view the answer is clearly no. Under present
- ~
to assure adequate financing of our remaining deficits in a
manner consistent with an improved payments system and the role
of the U. S. dollar as an international reserve currency.
In its particulars, our program has encompassed a broad range of
actions and policies, of widely varying character and timing. Its roost
important components have been, and will continue to be, measures that
will improve the competitive position of our economy, not only 1n tenu
of efficient production at reasonable prices of the goods and sernces
in demand in world markets, but also in terms of its attraction to
capital, both foreign and domestic. Basically, this means a rapidly
growing economy attractive to new investment -- an economy in which
our industry provides clear leadership to the world in product desi~
and development, as well as in production methods. And it also must
mean stability or reductions in costs and prices.
The Long Range Program - Tax Policy, Cost and Price Stability, Export
Promotion
The primary opportunity today for action of major and lasting
importance to support these goals lies in the area of taxation. The
investment credit ena.cted last year and our thoroughgoing administrative
liberalization and modernization of the regulations governing depreciation
have given a strong boost to the international competitive position of
American industry. But more is needed. We must strike from our economy
the shackles of wartime tax rates which were originally designed to curb
excess demand and combat the strong inflationary pressures of the war
and early postwar years. The $10 billion net reduction in personal and
corporate income taxes recommended by the President will do just this.
Not only is this tax reduction program the keystone of our effort to
lift the grovtn of our domestic output and employment, but it bas a direct
bearing on our prospects for eliminating our balance of payments deficit.
Of course, one of the effects of any stimulus to domestic ~h,
whether induced by tax. reduction or otherwise, will be some increase in
imports to feed the production process and to meet the demand generat~
by higher incomes. But added investment in new plant and equipment,
responding to the stimulus of tax reduction should help us to reduce coats
through the installation of new and up -to -date machinery. And a. rapidly
growing economy will offer a favorable environment for the introduction
of new products and for pioneering in new production processes. This
viiI help make American businessmen more competitive not only in fo~if
markets, but also in our own home market, where we face substantial ~d
aggressive foreign competition.
Even more important in terms of the balance of payments, tax
reduction viE grea.tly improve the investment climate in the United. States.
Incentives for the American businessman to utilize his fUnds in expud~g
- 8 -
The Easlc Approach of our BaJ.ance of P9JD!nts
Prosram
The basic philosoPhy and general approach Yhicb will continue to
underlie our program for closing the deficit were first set down in
the President's Message to Congress on the Balance of P~nts of
February 1961. As he has made clear, our firm intent is to atta1JJ a
satisfactory and durable balance in our over-all p~nts b7 _lUIS
consistent with other basic national interests. We cannot seek Elolutiou
at odds with our traditional reliance OD a decentralized free enterprise
econOlDY. We mst recognize the clear need for reducing unempl.o7meDt IIId
for more rapid economic growth at home. In our own interests, and those
of other nations, internationeJ. trade must be expanded rather than
restricted. And we cannot abandon our central responsibilIties or world
leadership -- for JDaintaini~ secure defenses, for contributing to the
development of less favored nations, and for conducting our affairs ill a
way that will maintain freedon of capi tal movemeuts and strengthen the
fabric of the internatioDBl monetary" systs.
These basic requirements, combined vitb the s~le fact ot our
dominant role in world trade and finance, have meant that we could DOt
either prudently or effectively utilize IIUUlY of the s~ler and more
direct types of action by which other countries have soaet:lJlles dealt
with their ~nts deficits. Currency devaluation, import restrlct1oDa,
exchange controls, substantial restriction of credit deSigned to raise
interest rates and. reduce domestic consumption, or aballd.onmeDt of our
commitments for the protection of the free world are all out ot the
question. Instead, we have recognized that:
First, a satisfactory and lasting balance in our pa.yaeDts
can be achieved only as substantial adjustments are Dade 111
countless transactions b7 our private citizens ancl business f'f.ma,
each responding freely and vigorously to new market incentives aDd
opportunities;
Second, these necessBl7 market adjustments muat be supported
and encouraged b7 an appropriate fiscal and lIOIletary env1l"C)1DDt,
by effective Government trade promotion programs, and bJ t1l'1l
discipline in the maintenance of price and cost stabilitJj
Third, because the full beDefits of these market ~ustmeDtI
will become evident only over a period of )'earS I there 1s a
continuing need to seek add1 tional a.ncl more imediately effective
reductions in, or offsets to, those large foreign payments that
can be subjected to direct administrative action, part1cul.ar11 ill
the areas of defense and aid;
Fourth, as a :f\1rther means of assuring our capacity to dell
with the immediate situation while our loDger-tem program i8
taking hold, we mst pursue vigorously a wide variety of . . .urea
- 7 -
The final line of Table 4 shows that our gold payments in both
1961 and 1962 were little more than half as large as in 1960. Our
gold loss in the first six months of the current year has been runni~
at a rate substantially below the 1961-62 level, and during this
period the Treasury gold stock declined by $245 million. However,
since the volume of gold transactions customarily fluctuates sub.
stantially during the course of anyone year, it is difficult to draw
conclusions from the results over any fetv months.
One other fact deserves mention before leaving these tables.
Transactions with Canada s~vung markedly against the United States
during the first quarter of 1963 as compared with a year ago, when
our position vis-a-vis Canada :'Jas unusually favorable. Between these
two quarters, the swing against us was $360 million. This was
largely due to the unusually heavy Canadian borrm'lings in the United
States to uhich I referred earl ier. This rate of borro\vins is not
1 j,'.~ely to continue. He amvhile , our "regular transact Lonsll ''lith all
other countries sho~..ed an improvement during the first quarter as
compared to the same period in 1962.
The Over-All Strength of the U.S. Financial Position
In appraising these recent flOt-1S, and the evident need for further
action to reduce the deficit, I 'tvant to emphasize that the over-all
strength of our financial position is enormous, despite the decline
in our gold stock and the increase in our liquid liabilities to
foreigners. Today, the aggregate value of private investment holdings
abroad b~r Americans totals over $60 billion. Nearly two-thirds represents direct investment in foreign enterprises -- the kind of
iuvestment which can be expected to yield a steady increase in earnings over the years ahead. The increase in these private assets
since the end of 1949, when our long series of deficits began, has
roughly matched our loss of gold and the rise in foreign claims on
the United States. At the end of 1962, investments by our private
citizens in other countries, plus our gold stock, exceeded holdings
of foreign countries and international institutions here -- most of
which are in relatively Imv-yielding money market instruments -- by
an estimated $25 billio~, or about the same as in 1949. In 1957,
before the recent period of larger deficits, the margin was only
sl ightly larger. Moreover, these calculations do not take any account
of the steady accumulation of U. S. Government loans and investments
abroad, which now total about $18 billion. Soma of these Government
funds, to be sure, may not be fully realizable in useful currencies,
but in toto they do represent much of real value, and they serve to
further bolster our long-run position.
- 6 -
increased by over $500 million. During the first quarter of 1963, this
bo.lance remained at approximately the 1962 level. It is this pattern which
points so clearly to the need for an intensification of our efforts to
achieve a more competitive economy and to reduce the burdens on our
international accounts from aid and defense to the maximum extent consis_
tent \-lith the vital national objectives to'ivard which these programs are
directed.
Heamlhile, we have had considerable success in arranging "special
transactions" to narrow the gap in our payments, helping to carry us
through this difficult period. These transactions totaled nearly
$1.4 billion in 1962. But arrangements of this character, dependent as
they are on the cooperation and confidence of our friends and trading
partners and representing a charge on our future earnings, cannot be viewed
as a substitute for substantial and early improvement in our trade,
capital, and regular Government accounts.
Table 4 shows the manner in which our residual deficit has been
financed -- through the acquisition of additional dollars by foreign
countries and international institutions, through net repayments by
foreign countries to the International Monetary Fund in dollars, and
ultimately through net sales of gold or convertible currencies. While
the composition of this financing depends importantly on the position and
policies of the countries whose surpluses happen, at any given time, to be
the counterpart of our deficit, it is clear that each of these means of
financing has played an important role over the past three years.
I should point out that the decline indicated in our net position
vis-a-vis the IMF -- that is, the increase in the Fund I s dollar holdings ••
does not reflect any drawing on the Fund by the United States. Rather. it
reflects the extent to which other countries, which in the past have borrM(
dollars in large volume from the IMF in time of difficulty, have now repald
those drawings.
\Vhen a foreign country draws dollars from the IMF, they may use these
dollars to finance their own deficit; as these funds pass from country
to country, they may become a claim on our gold or must be absorbed in
other ways. Conversely, as dollars are repaid to the Fund -- as they were
in a net amount of almost $1 billion over the three years 1960-1962 .these dollars, until drawn by other countries at some later date, are
immobilized in the IMP. An equivalent portion of our deficit is thus
financed without loss of gold or a buildup in dollar holdings of forei~
countries. At the same time, under the rules of the Fund our potential
drawing rights are increased or reduced as Fund holdings ~f dollars decliDl
and rise. As of last April 30, Fund holdings of dollars reached the aaoaut
of our dollar subscript ion -- equal to 75 per cent of our quota. RepaJIIDu
cannot be accepted by the Fund in dollars beyond this limit. In other vM9•
\Jith minor technical exceptions, countries presently indebted to the Fund
cannot now make repayments in dollars but must repay either in gold or
other convertible currencies of which the Fund holds less than 75 per cent
of quota.
- 5 Loog-tel.'":ll capital out£lm.rs, also shown on Table 2, moved somewnat
higher in both 1961 and 1962, and then jumped sharply during the first
quarter of this year, reaching a total of over $1 billion in only three
months. This upturn, pri~arily due to an exceptionally large volume of
Canadian borro\l[ing in the New York market, is the largest single factor
responsible for the lack of improvement in our over-all accounts duri~
the first quarter.
Moreover, the flow of foreign direct and long-term portfolio invest.
ment into the United States declined sharply in 1962 from levels already
disproportionately 10\01 relative to similar U. S. investment abroad. There
was a still further decline during the first three months of 1963.
Short-term capital, on the other hand, flowed toward the United
States on balance during the first quarter. However, this was to s~
extent a statistical illusion. Definite signs of renewed outflo~ have
been apparent each month since January, when a single large loan repa~nt
combined with the usual reversal of year-end window dressing by Europea
banks to cause a sharp, but temporary, improvement of some $200 million.
This January inflow has been more than offset in succeeding months. For
the first five months of 1963, the net recorded short-term outflow appears
to have been about $200 million.
As shOtvu on Table 3, net recorded short-term capital movements were
substantially smaller last year than during 1960, when funds flowed out 1n
record volume, but '-lere still uncomfortably large. Moreover, the inter.
pretation of this downward trend in recorded outflows since 1960 1s
somewhat clouded by a rise over the same period in unrecorded outflows,
which usually are thought to include a substantial element of short-tem
capital. Looking at the picture as a whole, it is evident that movements
of short-term capital will continue to require very close attention in aur
effort to move toward sustainable equilibrium.
Consistent with our objective of presenting these data to interested
analysts as clearly and meaningfully as possible, certain revisions han
recently been introduced in the official presentation of balance of
payments data by the Department of Commerce. Accordingly, Table 3,
in summarizing the data, distinguishes between "regular" and "special
Governmene' transactions.
Broadly speaking, "regular transaction lt are those public and private
transactions responding to usual market forces and to well-established
goverrunental policies here and abroad. The "special transactions" are
those resulting from intergovernmental negotiations specifically
arranged to ease the balance of payments situation of the United States.
This category is comprised of foreign debt prepayments, advance payments
on military exports, and sales of non-marketabl~med1um-term Treasu~
securities to foreigners.
As Table 3 shm-ls f our balance on "regular transactions" showed
cot1siderable improvement in 1961, but approximately 60 per cent of this
im?roveraent was lost in 1962 \lhen the deficit on these transactions
- 4 -
hport Ben!, credits. Host of the remaining half 1s disbursed by the
,\gency for International Development. About SO per cent of the
disbursements by AID (and under related small programs) in the
calendar year 1962 is now estimated to have been provided in the fora
of U. S. goods and services, as compared with approximately one-third
that took this form in 1960. This percentage will rise sbarply in
coming years. Tlle Agency for International Development estimates that
the proportion of its new commitments that will directly be reflected
over a period of time in shipments of American goods and services
reached a figure of more than 80 per cent during the fiscal year 1963.
This means that, in time, more than 90 per cent of Government grantl
and capital will finance U. S. exports.
The significant upward shift in the proportion of tied aid is
probably the least known aspect of our entire balance of p,yments
program. Many people who have suddenly recognized the grave significance of our balance of payments problem are urging that the way
to stop the dollar drain is to cut out foreIgn aid. What we are
doing instead 1s to see to it tbat, so long as we remain in balance
of payments deficit, this country gives as much as possible of its aid
in kind. Uhen we can make our aid available this way, there is no
shift of dollars to others, but instead shipment of goods produced here.
Your Committee has inquired as to the actual net effect ou the
balance of payments of tying aid to American procurement, apparently
having in mind that some of this aid (or other funds available to ~
recipient nation) may have been spent in the United States in any event.
No one can pretend to answer that question with precision. But it
appears to us, on the basiS of our evaluations of the specific devel~·
ment programs financed by American aid, the types of goods involved, ~
the availability of alternative sources of supply, that a very large
proportion of this aid, 1f not tied, would find it. way into the r ..~
of other industrialized countries rather than result in exports from
the United States. That is why we think it appropriate, in analyzlq
our export figures, to include only those shipments that are commercially
financed. \.Je recognize that some fraction of the aid financed shil*ltI
might a.lso have been sold on fully competitive terms. although virtually
all recipients would have had to curtail imports sharply in the abs~e
of assistance. Furthermore, it is important to note that some of tu
funds shown as dollar payments under economic aid in our balance-ofpayments statistics -- including the payments we make to internat1~1
organizations -- result in purchases of U. S. goods and services, ~
not in building up foreign reserves of dollars.
Taking these various qualifications into account, it is the best
judgment of the AID agency that the figures I cited earlier about the
a.llount of tied U. S. economic aid do not overstate the degree to which
our economic aid in fact represents U. S. goods and services sent abrOl4,
adding to what we would otherwise have sold commercially. Tied aU~
be rightly viewed as an expedient to be abandoned when our internatiDD'l
aCCoLlnts return to equilibrium 8'1.d other aid-donors are prepared to fo111111
si~ila;;, "?olicies. But. "..le believe it to be an essential tool fot
=~c".lcilinG, duri'1g this difficult period, the imperatives of our ba181C'
uf :)a~rments ~·;r:i"th an effective aid program directed toward vital forei&'
?Clicy oojectives.
- 3 by hard and imaginative effort by lunerican business enterprise. And,
industry must be supported by all the assistance in trade promotion
and export credit facilities that Government can appropriately render,
consistent uith our firm con:mitments to the principles of freer trade
and fair conpetition ~mbodied in the General Agreement on Tariffs
and Trade.
Meanwhile, our surplus on commercial services has improved
appreciably since 1960, fully offsetting the decline in our merchandise
trade balance. This has been achieved despite a sizable increase in
our tourist expenditures abroad, largely because of a rise of nearly
$1 billion in two years in our annual income from private foreign
investments. This flow of earnings exceeded $1 billion during the
first quarter of 1963 alone, one reflection of the basic strength of
our international investment position.
The outflow of dollars stemming from net Government payments
abroad, plus net private long-term capital movements, as shown on
Table 2, declined in both 1961 and 1962, dropping from slightly over
$6 billioH in 1960 to$4-3/4 billion last year. However, this improvement was largely due to some special Government receipts. During the
first quarter of 1963, this favorable trend was sharply reversed, as
private long-term capital outflows rose sharply and the special Government receipts included in these figures ran at a much lower rate than
during 1962.
Net military expenditures abroad declined by nearly $850 mll11~
between 1960 and 1962, largely because of a sharp rise in military
payments to us by our allies. This rise in military receipts reflected
agreements with certain of our allies providing for procurement of more
of their equipment and supplies from the U. S., helping to offset the
balance of payments impact of the costs of maintaining our forces Ln
their countries. However, a large portion of these military receipts
during 1962 represented advance payments for military hardward to be
delivered at a later date; similar advances were small during the
first quarter of this year.
He anwhile, the Defense Department has successfully held its gross
spending abroad below 1960 levels. Vigorous economy efforts and
increased emphasis on American procurement have been required to achieve
this result in the face of the added costs related to the "Berlin
build-up" in the fall of 1961 and to the substantial increases in
local prices in areas where our troops are stationed.
At the same time, dollar outlays overseas for economic assistance have been held essentially level, while an increased total amo~t
of aid has been provided in the form of American goods and services.
Roughly half of the gross Government grants and capital expenditures
that appear in the balance of payments is inherently tied to exports
of U. S. goods and services, under Public Law 480 programs and Export-
- 2 -
restore solid balance of payments equilibrium.
But, the hard fact is that pro8ress toward our goal of bal.ace
has been disappointingly slow and uneven over the past twelve moDth••
When all special Government transactions are excluded, the deficit
during the first quarter of this year was no smaller than the aver.,.
quarterly figure for 1962.
Wl' have been able to finatlCe this continuiaa deficit succe edully.
But that task will rapidly become more difficult unless we can poiat
to eonerete evidenca that we are matins further significant inroads
into the hard core of our deficit. And to achieve that Decessary
progre8s, our efforts directed toward improvement in every ..jor
sector of the balance of payments must be sustained and intensified.
Developments in OUr Balance of Payments Accounts siaee 1960
The nature of our problem ls lllustrated in the tables accOlp~.
my statement, which Iumarize developments in the various sector. of
our balance of payments since 1960. As 1nrl1,t:Ated by Table I, our
over-all surplus on goods and services -- exclud1ag those export. of
both goods and services directly fiDaDced by our foreign aid progr.. ••
was about the same in 1962 as in 1960~ at $4.3 billion. If allovmKe
is made for the impact of the dock strike last winter, the results for
the first quarter of this year were ir 'lne with 1962 experience. JA
1961., h~ver, t~is ffconmercial surplus" had temporarlly moved
considerably higher, to $5.3 b1llion.
the year 1961 was favorably influenced by a decline in impart.,
associated with the delayed effects of the 1960 recession. Subseqwut
recovery brought a sharp 't'ebouud in impo'~'::'; 1 ast year. aD&l. as a
result. our surplus on coaaereial MrehaneUse trade alone was SOlllll
$300 million smaller in 1962 than it had been In 1960. despite a
grDt-lth of roughly $600 million in our conmercial exports. 1'his would
indeed be discouraging, bad we not foreseen t~e sharp increase in
import requirements from recession levels which was quite cODsiateat
with past cyclical behavior. Even so, these data aUSlest the critical
importance of further efforts to lift our export performauce an4 widell
our trade surplus.
Department of Commerce analysts have recently reported aome ~1.
but auggestive t indications that our competitive position in world ..ma
is beginning to improve. Imports over recent months are NDDilll • Itit
beloW' expected relationships to GNP J and exports are slightly above •
level that might have been anticipated on the basis of treads ia f~
business activity. But this evidence, welcome as it Is, provlclu 10
ground for concluding that :lmprOV81llellt in this area can be decisive
in terms of our over-all problem for the period immediately ahead.
In this hlghly competitive l~orld ecouOlllY, that result can only be
assured over a period of years by improved industrial efficiency. ad
TREASURY DEPAR'lKENT
iiashington
FOR. RELEASE ON DELIVERY
STATEMSN'! OF TIlE HONORABLB DOUGLAS DILLON
SECRETARY OF TH! TREASURY
BEFORE THE
JOINT ECONOMIC COMKmEE
MONDAY, JULY 8, 1963, 10:00 A.M. EDT
1 welcome this opportunity to discuss witn your CQaalttee the
policies and programs of the united States aimed at restoring ballDCe
in our international accounts. lbe se~rcbing questloaa you baye
submitted to the Treasury focus on many of the key is.ues with which
we must deal. I should like to touch upon eaeh of them in my
testimony today, although a number of them can be more fully covered
by Under Secretary Roosa.
Your inquiry is particularly timely, for the data now becaadna
available for tbe first half of 1963 emphasize again that the path
toward balance is not any easy one -- that past progress can be 110
substitute for renewed effort -- and that, while we have beeD able
to buy time, there is no ttme to waste. In recognition of these
facts, the Cabinet Committee on tbe Balance of Payments, establiaMd
last summer by the President under my chairmanship, has for some
months been conducting an intensive revie~ of all aspects of our
progress and programs. That review is nearly completed. The
Administration 1s now preparing a new detailed action program foe
the fiscal year that began this month -- a program that will build
upon and reinforce the policies introduced shortly after President
Kennedy took office. This discussion, by providing an opportunit,
to explore witb you the varied aspects of our problem .- a proble.
that cuts across 80 many vital national interests -- will greatl'
assist us in making final decisions on appropriate and effeetive
measures to meet our needs. After these decisions are approved
by the Presideot and announced, we will of course be glad to return
and discuss them with you should you so desire.
In evaluating our progress over the past two years, a number of
encouraging developments are evident. Our oyer-all payments deficit
has been reduced moderately from a peak of $3.9 billion in 1960, ~
an average of $3.7 billion in the period 1958-1960. to $2.4 bil1101
in 1961 and to $2.2 billion in 1962. this was achieved despite the
higher level of ~ports associated with substantial gains in the
domestic economy. Labor costs and prices have held steady throupo.t
this period of rising activity, in sharp contrast to the pattera of
developments within some other leading industrialized Dations. Md,
there is reason for confidence that these emerging market force ••if supported and reinforced by well coneeived tax reduction and
concerted effort by Government. industry, and labor -- will in tbB
D-898
TREASURY DEPARTMENT
Washington
FOR RELEASE ON DELIVERY
STATEMENT OF THE HONORAB~ DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE
JOINT ECONOMIC COMMITTEE
MONDAY, JULY 8, 1963, 10:00 A.M. EDT
I welcome this opportunity to discuss with your Committee the
policies and programs of the United States aLned at restoring balance
in our international accounts. The searching questions you have
submitted to the Treasury focus on many of the key issues with which
we must deal. I should like to touch upon each of them in my
testimony today, although a number of them can be more fully covered
by Under Secretary Roosa.
Your inquiry is particularly timely, for the data now becoming
available for the first half of '1963 emphasize again that the path
toward balance is not any easy one -- that past progress can be no
substitute for renewed effort -- and that, while we have been able
to buy time, there is no time to waste. In recognition of these
facts, the Cabinet Committee on the Balance of Payments, established
last summer by the President under my chairmanship, has for some
months been conducting an intensive review of all aspects of our
progress and programs. That review is nearly completed. The
Administration is now preparing a new detailed action program for
the fiscal year that began this month -- a program that will build
upon and reinforce the policies introduced shortly after President
Kennedy took office. This discussion, by providing an opportunity
to explore with you the varied aspects of our problem -- a problem
that cuts across so many vital national interests -- will greatly
assist us in making final decisions on appropriate and effective
measures to meet our needs. After these decisions are approved
by the President and announced, we will of course be glad to return
and discuss them with you should you so desire.
In evaluating our progress over the past two years, a number of
encouraging developments are evident. Our over-all payments deficit
has been reduced moderately from a peak of $3.9 billion in 1960. and
an average of $3.7 billion in the period 1958-1960, to $2.4 billion
in 1961 and to $2.2 billion in 1962. This was achieved despite the
higher level of imports associated with substantial gains in the
domestic economy. Labor costs and prices have held steady throughout
this period of rising activity, in sharp contrast to the pattern of
developments within some other leading industrialized nations. And.
there is reason for confidence that these emerging market forces -if supported and reinforced by well conceived tax reduction and
concerted effort by Government. industry, and labor -- will in time
[)-898
- 2 -
restore solid balance of
pa~ents
equilibrium.
But. the hard fact 18 that progress toward our goal of balal~d
has been disappointingly slow and uneven over the past twelve DIOllth ••
~len all special Government tTansactions are excluded. the deficit
du~lng the first quarter of this )ear was no smaller than the avera&e
quarterly figure for 1962.
We have been able to finance this continuing deficit successfully.
But that task will rapidly become more difficult unless we caD point
to concrete evidence that we are making further significant inroads
lnto the hard core of our defiCit. And to achieve that necessary
progress, our efforts directed toward improvement in every ..jor
sector of the balance of payments must be sustained and intensiftea.
Develoements in Our Balance of Pay!!nts Accounts since 1960
The nature of our problem Is illustrated in the tables accompan11q
my statement, which summarize de~elopment. 1a the various sectors of
our balance of payments since 1960. As indtcnted by 7able 1. our
over-all surplus on goods and services -- excluding those exports of
both goods nnd services directly fiDanced by our foreign aid progrmu
was about the same 1n 1962 as 1n 1960. at $4.3 billion. If allowance
i8 made for the impact of the dock strike last viater. the results for
the first quarter of tllls year were in 1. ine with 1962 experience. 1&
1961, however. this "commercial surplus" had temporarily IlOved
conSiderably higher, to $5.3 billion.
The year 1961 was favorably influenced by a decline in tmportl,
associated with the delayed effects of the 1960 recession. Sub8eqge~
recovery brought a sharp rebound in impol.·I~·; last year, and. as a
result, our surplus on commercial merchandise trade alone was some
$800 million smaller 1n 1962 than it had been in 1960, despite a
growth of roughly $600 million 1n our commercial exports. This would
indeed be discouraging. bad we not foreseen the sharp increase in
import requirements from recession levels which was quite consistent
with past cyclical behavior. Even so. these data suggest the critical
~portance of further efforts to lift our export performance and widen
our trade surplus.
Department of COlllllerce analysts have recently reported some tentativc,
but suggestive. indications that our competitive position in world markeu
is beginning to improve. Lmports over recent months are running a bit
below eKp~cted relationships to CNP J snd exports are sli~htly above a
le".l that lIlight have been anticipated on the basts of trends tn foreip
business activity. But this evidence. welcome as it 19, provides no
ground fCJr concluding that improl1el!lent in this area. can be decisive
in terms of our over..alJ pL"obl~14 for the period bvaedtacely ahead.
In this hiehly ~oulpetit1ve ,,,arId econolllY, that result elm only be
assur.ad uvc:r il pcr11ld of y~al·:" by 1R\1·lcoV(~d 1ndustrial l:fficlency. lIod
- 3 by hard and imaginative effort by American business enterprise. And,
industry must be supported by all the assistance in trade promotion
and export credit facilities that Government can appropriately render,
consistent with our firm commitments to the principles of freer trade
and fair conpetition embodied in the General Agreement on Tariffs
and Trade.
Meam.,rhile, our surplus on commercial services has improved
appreciably since 1960, fully offsetting the decline in our merchandise
trade balance. This has been achieved despite a sizable increase in
our tourist expenditures abroad, largely because of a rise of nearly
$1 billion in two years in our annual income from private foreign
investments. This flow of earnings exceeded $1 billion during the
first quarter of 1963 alone, one reflection of the basiC strength of
our international investment position.
The outflow of dollar~ stemming from net Government payments
abroad, plus net private long-term capital movements, as shown on
Table 2, declined in both 1961 and 1962. dropping from slightly over
$6 billion in 1960 to$4-~~/4 billion last year. However, this improvement llaS largely due to some special Government receipts. During the
first quarter of 1963, this favorable trend was sharply reversed, as
private long-term capital outflows rose sharply and the special Government receipts included in these figures ran at a much 10\ver rate than
during 1962.
Net military expenditures abroad declined by nearly $850 million
between 1960 and 1962, largely because of a sharp rise in military
payments to us by our allies. This rise in military receipts reflected
aereements \·,ith certain of our allies providing for procurement of more
of their equipment and supplies from the U. S., helping to offset the
balance of payments impact of the costs of maintaining our forces in
their countries. However, a large portion of these military receipts
during 1962 represented advance payments for military hardward to be
delivered at a later date; similar advances were small during the
first quarter of this year.
Meanwhile, the Defense Department has successfully held its gross
spending abroad below 1960 levels. Vigorous economy efforts and
increased emphasis on American procurement have been required to achieve
this result in the face of the added costs related to the "Berlin
build-up" in the fall of 1961 and to the substantial inceeases in
local prices in areas where our troops are stationed.
At the same time, dollar outlays overseas foe economic assistance have been held essentially level) \vhile an increased total amount
of aid has been provided in the form of American goods and services.
Roughly half of the gross Government grants and capital expenditures
that appear 1n the balance of payments is inherently tied to exp0l"tl;
of U. S. goods and services, under Public Law 480 programs and Expoct-
- 4 Import B.:mk credits. Host of the remaining half is disbursed by the
for International Development. About 50 per cent of the
disburser.lents by AID (and under related slnall prograllls) in the
calendar year 1962 is now estima~ed to have been provided in the form
of U. S. [;oods and services, as compared 'lith approximately onc-thlrd
thilt took this forlB in 1960. This percentage will rise sharply t n
com1nz years. The Agency for International Development estinl:.ltes thilt
the pro!,>ortion of its ne,., cOliwitments that will directly be reflected
over a period of time in shipments of American goods and services
reached a fi~ure of more than 80 per cent during the fiscal year 1963.
Ihi!) means that, in time, more than 90 per cent of Government grants
and capital \{ill finance U. S. exports.
A~cncy
The significant up\.7ard shift in the proportion of tied aid is
probably the least ltnO\o1n aspect of our entire balnncc of payments
program. H.my people who have suddenly recognized the grave Bienificanc~ of our balance of payments problem are urging that the way
to stop the dollar drain is to cut out foreign aid. Nhat we are
doing instead is to see to it that, so long as we remain in balance
of payments defiCit, this country gives as much as possible of its ald
in kind. Hben l-1e can make our aid available this way, there is no
shift of dollars to others, but instead shipment of goods produced here,
Your COfrunittee has inquired as to the actual net effect on the
balance of. p3ymants of tyi·ng aid to American procuremant, apparently
having in mind that some of this aid (or other funds available to the
recipient nation) m.:1y have been spent in the United States in any event,
No one can pretend to answer that question with preciSion. But it
appears to us, on the basis of our evaluations of the specific devel~.
ment progrtlmS financed by American aid, the types of goods involved, and
the availability of alternative sources of supply, that a very large
proportion of this aid, if not tied, would fLnd its way into the rese~s
of other industrialized countries rather than result in exports from
the United States. That is why ve think it appropriate~ in analyzing
our export fieures, to include only those shit>ments that are commercially
financed. He recognize that some fraction of the aid financed shipments
might also have been sold on fully competitive terms, although virtually
all recipients would have had to curtail imports sharply in the absence
of assistance. Furthermore, it is iml)Ortant to note that some of the
funds shOlm ns dollar payments under econolilic aid in our balance-ofpa~nents statistics -- including the payments we make to international
organizations -- result in purchases of U. S. goods and services. and
not in building up foreign reserves of dollars.
Taking these various qualifications into account, it is the best
of the AID agency that the figures I cited earlier about the
~Im,)llnt of tieu U. S. eeonomic aid do not overstate the degree to which
our economic aid in fact represents u. S. goods alld services sent abroad.
cldding to \lhat \1-= tlould otheI"\1ise have sold commerc i.ally. Tied aid rJl!Y
be rightly vieHcd as an expedient to be abandoned ,,,hen our international
accounts return t,) uquilibriurr: <l:1J other aid-donors are pr~pi1rcd to foIlG,;
S 11:lilaL" lJol i~ i(>::;.
3at ~ \lC b.:~l lev.; it to be an essential tool for
r . . c\")ilcilin.;, ,!ul.·ln.~ thi;,; difficult pc.ciod, the Lnpe.ratives of our balanc,
,")t p.l)'... ·iltS I:lth .h\ cfi.::~tivc.: •.tid progra.n directr::d to\lard vital foreign
!1..1 !.l·:' lIuj ..,.:tiV,·.i"
jud~lIient
- 5 -
Long-te.rm capital outflows. also shown 011 Table 2, moved sOlllCwhat
higher in both 1961 and 1962, and then jUinped sharply during the first
quarter of this year, reaching a total of over $1 billion in only three
months. This upturn, primarily due to an exceptionally large volume of
Canadian borrowing in the New York market, is the largest single factor
responsible for the lack of improvement in our over-all accounts during
the first quarter.
Moreover, the flow of foreign direct and long-term portfolio investment into the United States declined sharply in 1962 from levels already
disproportionately low relative to similar U. S. investment abroad. There
was a still further decline during the first three months of 1963.
Short-term capital, on the other hand, flowed toward the United
States on balance during the first quarter. However, this was to SOIRe
extent a statistical illusion. Definite signs of renewed outflow have
been apparent each month since January, when a single large loan repayment
combined with the usual reversal of year-end window dressing by European
banks to cause a sharp, but temporary, improvement of some $200 million.
This January inflow has been more than offset in succeeding months. For
the first five months of 1963, the net recorded short-term outflow appears
to have been about $200 million.
As shown on Table 3, net recorded short-term capital movements were
substantially smaller last year than during 1960, when funds flowed out in
record volume, but were still uncomfortably large. Moreover, the interpretation of this downward trend in recorded outflows since 1960 is
somewhat clouded by a rise over the same period in unrecorded outflows,
which usually are thought to include a substantial element of short-term
capital. Looking at the picture as a whole, it is evident that movements
of short-term capital will continue to require very close attention 1n our
effort to move toward sustainable equilibrium.
Consistent with our objective of presenting these data to interested
analysts as clearly and meaningfully as pOSSible, certain revisions have
recently been introduced in the official presentation of balance of
payments data by the Department of Commerce. Accordingly, Table 3,
in summarizing the data, distinguishes between "regular" and "special
Government" transactions.
Broadly speaking, "regular transaction" are those public and private
transactions responding to usual market forces and to well-established
goverlUllental pOlicies here and abroad. The "special transactions" are
those resulting frOm Intergoverluaental negotiations specifically
arranged to ease the balance of pa~nents situation of the United States.
This category is comprised of foreign debt prepayments, advance payments
on military exports, and sales of non-marketab1~medium-term Treasury
securities to foreigners.
As Table 3 shm-ls, our balance on "regular transactions" sho\~ed
considerable improvement in 1961. but approximately 60 per cent of this
improvement was lost in 1962 when the deficit on these trantlacCions
- 6 increased by ov~r $50U million. During the first quarter of 1963, this
balance remained at approximately the 1962 level. It is this pattern which
points so clearly to the need for an intensification of our efforts to
achieve a more competitive economy and to reduce the burdens on our
international accounts from aid and defense to the ru3xiolUQl extent consistent "'ith the vital national objectives to'lard which these programs are
directed.
Mcanl"hile, we have had considerable success in arranging "special
transactions" to narrow the gap in our payments, helping to carry us
through this difficult period. These transactions totaled nearly
$1.4 billion in 1962. But arrangements of this character, dependent as
they are on the cooperation and confidence of our friends and trading
partners and representing a charge on our future earnings, cannot be viewed
as a substitute for substantial and early improvement in our trade.
capital, and regular Government accounts.
Table 4 shows the manner in llhich our residual deficit has been
financed -. through the ac,~uisition of additional dollars by foreign
countries and international institutions, through net repayments by
foreten countries to the International Honetary Fund in dollars, and
ultinl...1.tely through net sa.les of gold or convertible currencies. While
the composition of this financing depends importantly on the position and
poliCies of the countries whose surpluses happen, at any given time, to be
the counterpart of our deficit, it is clear that each of these means of
financing has played an important role over the past three years.
I should point out that the decline indicated in our net position
vis-a-vis the n.lF -- that is, the increase in the Fund I s dollar holdings -does not reflect any drawing on the Fund by the United States. Rather, it
reflects the extent to which other countries, which in the past have bou~
dollars in large volume from the llIF in time of difficulty J have nO\, repaid
those drawings.
\Vhen a foreign country draws dollars from the IMF, they may use these
dollars to finance their own deficit; as these funds pass from country
to country, they may become a claim on our gold or must be absorbed in
other ways. Conversely, as dollars are repaid to the Fund -- as they were
in a net amount of almost $1 billion over the three years 1960-1962 .these dollars, until drawn by other countries at some later date, are
immobilized in the IMF. An equivalent portion of our deficit is thus
financed without loss of gold or a buildup in dollar holdings of foreip
countries. At the same time, under the rules of the Fund, our potential
drawing rights are increased or reduced as Fund holdings of dollars decll~
And rise. As of last April 30, Fund holdings of dollars reached the amount
of our dollar subscription .... equal to 15 per cent of our quota. Repayaelltl
cannot be accepted by the Fund in dollars beyond this limit. In other vord.
with minor technical exceptionsl countries presently indebted to the FuM
cannot now make repayments in dollars but must repay either in gold or
other convertible currencies of which the Fund holds less than 75 per cent
of quota.
- 7 The final line of Table 4 shows that our gold payll1l.!nts in both
1961 and 1962 were little more than half as large as in 1960. Our
gold loss in the first six months of the current year has been running
at a rate substantially below the 1961-62 level, and during this
period the Treasury gold stock declined by $245 million. However,
since the volume of gold transactions customarily fluctuates substantially during the course of anyone year, it is difficult to draw
conclusions from the results over any few months.
One other fact deserves mention before leaving these tables.
Transactions with Canada S\l1unB markedly against the United States
during the first quarter of 1963 as compared with a year ago, uhen
our position vis-a-vis Canada ',,ras unusually favorable. Bet\veen these
two quarters, the swing against us was $360 million. This was
largely due to the unusually heavy Canadian borrO\ving8 in the United
States to \lhich I referred earlier. This rate of borrowing is not
likely to continue. Heanwhile, our IIregular transact ions" with all
other countries showed an improvement during the first quarter as
compared to the same period in 1962.
The Over-All StrenGth of the U.S. Financial Position
In appraiSing these recent flovls, and the evident need for further
action to reduce the deficit_ I want to emphasize that the over-all
strength of our financial position is enormous, despite the decline
in our gold stock and the increase in our liquid liabilities to
foreigners. Today, the aggregate value of private investment holdings
abroad by Americans totals over $60 billion. Nearly two-thirds represents direct investment in foreign enterprises -- the kind of
investment VJhich can be expected to yield a steady increase in earnings over the years ahead. The increase in these private assets
since the end of 1949, when our long series of deficits began, has
roughly matched our loss of gold and the rise in foreign claims on
the United States. At the end of 1962, investments by our private
citizens in other countries, plus our gold stock, exceeded holdings
of foreign countries and international inotitutions here -- most of
which are in relatively lm.,-yielding money market instruments -- by
an estimated $25 billion, or about the same as in 1949. In 1957,
before the recent period of larger deficits, the margin was only
slightly larger. Moreover, these calculations do not take any account
of the steady accumulation of U. S. Government loans and investments
abroad, which nm., total about $18 billion. Some of these Govermuent
funds, to be sure, may not be fully realizable in useful currencies,
but in toto they do represent much of real value, and they serve to
further bolster our long-run position.
- 8 'l'be .basic Apl'rOflch of our Balance of Pmellts Program
The basic philosophy and general approach which will cODtinue ~
underlie our program for closing the deficit ~ere fIrst set down 1D
the President's Message to Congress on the Ealance of Payments of
February 1961. As he has made clear, our firm intent is to attain &
satisfactory and durable balance in our over-all payments by means
consistent wl th other basic national interests. We cannot seek 801UtiOlll
at odds wi th our traditional reliance on a decentralized free enterpr1ae
economy. Ve must recognize the clear need for reducing Wlemployment IIId
for more rapid economic growth at home. In our ovn interests I and tIIoIe
of other nations, international trade must be expanded rather than
restricted. And we cannot abandon our central responsibilities of world
leadership -- for maintainIq!; secure defenses, for contributing to the
development of less favored nations, and for conducting our atfain 1D I
way that wIll maintain freedon of cap! tal movements and strengthen the
fabric of the international monetary system.
These basic requireIDents, combined with the simple fact of our
dominant role in world trade and finance, have meant that we could. not
either prudently or effectively utilize many of the simpler and more
direct types of action by vhlch other countries have sometimes dealt
with their payrD.ents de!'icits. Currency devalua.tion, import restrict10D1,
exchange controls, substantial restriction of credit designed to nuBe
interest rates and reduce domestic consumption, or abandonment of our
commitments for the protection of the free world are all out of the
question. Instead, we have recognized that:
First, a satisfactory and lasting balance in our p&yJDellta
can be achieved only as substantial adjustments are ma4e in
countless transactions by our private citizens and business tinY,
each responding freely and vigorously to new market incentives and
opportunities;
Second, these necessary market adJustBlents must be supported
and encouraged by an appropriate fiscal and monetary envil'ODlll8Dt,
by effective Government trade promotion programs, and by firm
discipline in the maintenance of price and cost stability;
Third, because the full benefits of these market
adJus~
will become evident only ov"er a pertod of years, there is a
continuing need to seek additional and more immediately effect1"
reductions in, or offsets to, those large foreign p8Jmente
~t
can be BubJected to direct administrative action, parttcularlJ U
the areas of defense and aid;
Fourth, as a further means of assuring our capacity to deal
\lith the ill1lllediate situation While our longer-term progr8lll 111
taking hold, we must pursue vigorously a wide variety or meUurtI
- 9 -
to assure adequate financing of our remaining deficits in a
manner consistent with an improved payments system and the role
of the U. S. dollar as an international reserve currency.
In its particulars, our program has encompassed a broad range of
actions and poliCies, of widely varying character and timing. Its DlOst
important components have been, and will continue to be, measures that
will improve the competitive position of our economy, not only in terms
of efficient production at reasonable prices of the goods and services
in demand in world markets, but also in terms of its attraction to
capital, both foreign and domestic. Basically, this means a rapidly
growing economy attractive to new investment -- an economy in which
our industry provides clear leadership to the world in product design
and development, as well as in production methods. And it also must
mean stability or reductions in costs and prices.
The Long Range Program - Tax Policy, Cost and Price Stability, Export
Promotion
The primary opportunity today for action of major and lasting
importance to support these goals lies in the area of taxation. The
investment credit enacted last year and our thoroughgoing administrative
liberalization and modernization of the regulations governing depreciation
have given a strong boost to the international competitive position of
American industry. But more is needed. We must strike from our economy
the shackles of wartime tax rates which were originally designed to curb
excess demand and combat the strong inflationary pressures of the war
and early postwar years. The $10 billion net reduction in personal and
corporate income taxes recommended by the President will do just this.
Not only is this tax reduction program the keystone of our effort to
lift the growth of our domestic output and employment, but it has a direct
bearing on our prospects for eliminating our balance of payments deficit.
Of course, one of the effects of any stimulus to domestic growth,
whether induced by tax. reduction or otherwise, will be some increase in
imports to feed the production process and to meet the demand generated
by higher incomes. But added investment in new plant and eqUipment,
responding to the stimulus of tax reduction should help us to reduce costs
through the installation of new and up-to-date machinery. And a rapidly
growing economy will offer a favorable environment for the introduction
of new products and for pioneering in new production processes. This
will help make American businessmen more competitive not only in foreign
markets, but also in our own home market, where we face substantial and
aggressive foreign competition.
Even more important in terms of the balance of payments, tax
reduction will greatly improve the investment climate in the United States.
Incentives for the American businessman to utilize his funds in expanding
... 10 ...
faeill ties at hUlne rather t.han a1road vill increase. lo'oxeIgnero are
likely to respond to t.he increased opportwlities as well, and securities
01' U. s. t'1nas, attracting the increasing fWlds of foreign savers, coUld
become one of our best selling exports. At the same tIme, the huge
flow of savings generated by American citizens will more readily find
employment within our own borders, reducing the present spillover of
surpluG savings to other markets.
The ability to employ our savings tully, and to attract investment
from abroad, fundamentally rests on the growth and profi tabi1! ty of our
economy. There are indications that profit margins are now shrinking in
Europe, under the pressure of riSing costs. It we can improve the growth
prospects and profitability of our economy, this should be a powerfUl
factor favorably influencing the long-term capital account in our
balance of payments.
The past year has seen important progress in reducing the tax
incentives for direct investments abroad by American business. One ot
the substantial tax advantages of foreign investment has been the more
favorable treatment of new investment through special tax credits and
accelerated depreciation. The investment credit enacted last fall, which
was limited to domestic investment, and our accompanying administrative
reform of depreciation have gone a long vay to remove th1s d1ffenential.
Enactment of the corporate tax reduction recommended b,y the President
vi11 be a substantial further step in equalizing the tax status of
investment at home and abroad -- in fact, with a reduction of the corporate
incollle tax to 41 per cent, the tax incentive to foreign investmEnt in Jll)st
industrial cOWltries as compared to domestic investment vill have b~ m
reduced as to be only a very minor element in business decisions to iDVe.t
abroad.
The Revenue Act of 1962 also revised our laws so as to strike ~
at the use of tax havens for purposes of tax avoidance. While it 1s
still lBuch too soon to be able to quantify the results of this action 1n
balance of payments or revenue terms, there is evidence of declining
interest in the establishment of new subsidiaries in tax haven countries.
In considering the relationship of our current tax program to the
balance of pa)'lnents, it is also important to point out that tax reduct10D
will accomplish a needed redistribution, between fiscal and monetary pollC)'J
of the responsibilities for encouraging bUSiness expansion. Readily
available credit is of little avail if the incentives are weak for usbS
that credit to make new investment. But, when incentives to invest are
strong, minor changes in interest rates may go relatively unnoticed, and
the monetary authori ties can have more freedOll1 to influence those rates
that are significant in terms of international capital flows.
You have inquired specifically as to whether a tax cut would nq~n
a tighter monetary policy to prevent a deterioration in our internattonal
accounts. To this in my view the answer 16 clearly no. Under present
- 11 -
circumstances, with our economy operating well below its capacity and
with high unemployment, the stimuluB of the substantial tax cut we have
recommended would not be inflationary. Consequently a tight credit policy
designed to slow consumption and counter inflation would appear to be
most inappropriate in the present setting. The relation of a tax cut
to monetary policy is quite different.
As I will point out in detail later, there is strong evidence that
a substantial portion of short-term capital flows are markedly sensi·eive
to interest rate differentials. Because of this fact, and in the light
of the size of our continuing over-all balance of payments deficit, we
must recognize the possibility that the monetary authorities may at some
point feel obliged to take further action designed to influence those
rates that are particularly significant for our balance of payments. A
tax cut would be most helpful in offsetting any possible adverse effect
of such action on our domestic economy. To put it in a nutshell, my
view is that a tighter monetary policy will not be required by the results
of a tax cut, but that a tax cut would prove most helpful should the
monetary authorities feel obliged to take further action for balance of
payments reasons.
Tax reduction to improve our industrial efficiency and our balance
on international investment flows must be paralleled by vigilant maintenance of wage and price stability. Our success in holding costs and
prices steady during the current expansion has been gratifying. Over
recent years, the annual rate of wage increase in manufacturing has dropped
steadily, and for the past two years bas been slightly below the yearly
gains in productivity •. That in turn has made possible a small decline in
wholesale prices since 1960. Nevertheless, the major test still lies
ahead, as our economy returns closer to its fUll potential. That is why
we have placed so much emphasis on the wage/price guideposts developed by
the Council of Economic Advisers as an ap~r6priate benchmark for evaluating
the longer-run behavior of wages and prices -- recognizing at the same time
that any tendency for productivity to exceed wage gains, when accompanied
by a parallel fall in prices, would help speed the needed process of
adjustment.
Finally, to be sure that our improving competitive position is
translated as quickly and fully as possible into growth in our trade
surplus, we must also provide all appropriate governmental stimulus and
assistance to the actual process of exporting. Many more American
bUSinessmen must be made aware of the large and profitable opportunities
offered by foreign markets. They should be aSSisted with all the market
information that government CWl prOvide, and with intensive official
promotion of American products abroad. And they must continue to be
provided with ample facilties for export financing, fully comparable to
those available in the other industrialized countries.
- 12 Our programs aimed at these obJectives bave already been great.ly
expanded, and we anticipate that the results vill be cumulatively
favorable as more and more American firms are brought into contact with
export markets. However, I might note at this time that the House or
Re~resentat1ves Just last month tailed to approve the app~priation8
requested by the Department of Commerce to strengthen these efforts to
stimulate our exports. I earnestly hope tbat the comparatively sall
mnount of fWlds involved, less than $6 m11110n in all, vill be restore4
by the Senate and included in the t1nal ~propriation btll -- tor it
surely will be returned to us many times over in addi tiona! earn1ngs traa
exports. Fallure to approve these tunda can only ensure a amaUer trade
surplus and a larger deficit In our balance at ~nts.
Et:fectlve actlon in these three areas -- tax reduction, price lid
cost stabl1lty, and an intensified export effort -- provides the core
of our longer-run program to restore balance in our InternatloD&l
p~nt8.
In addition, in View of the trencbant analy'Sls in the March
report of this Commlttee, I need not emphasize here the iJaRortance ot
successful trade neeotlations to assure that foreign markets are ~D W
our products, and I will not d1scuss this problea tmrtber
todaJ.
But these measures will necessarily require time to take etfect
through the worklng of market forces; their 1mpaat on our 1ntemat:loztal
pBJ,ments is as yet insufficient; and it would not be possible or ~t
to rest on these actions alone.
More Direct Government Action to Reduce and Finance the Deficit
This is w~ we bave undertaken a great variety ot more direct act.
that promise PrOJllpt results. While some of these measures will be of
value for years ahead, others provide only temporary benefits, or wW.cl
Dot be deSirable as penaanent programs. But all of them are urgentlJ
necessary today to achieve a reduction in foreign expenditures, to proy14e
adddi tiona! foreign receipts I or to facilitate the tinanciDg ot our
def1cits 1n a manner which will strengthen rather thaD distrub the wor~
payments system.
As I suggested ear11er, methods of reducing fore1gn ex:cbaDge costa
1n the two largeat areas of governmental foreign expenditures .- 1I111tan'
spending and foreign aid -- have been pursued vigorously. lllt. further
progress must and vill be made. As we review these programs inteuaiftl1,
opportuni ties for additional savings are being found, v1tbout Jeoparcllzlq
essential. national security obJectives. In addition, we are subJectill8
the foreign transact10ns of every other Federal agency to & periodiC
screening and JUs tif'lcatlon procedure centered in the Bureau of the JUI,.t.
While the total of these expenditures is not nearly so large as tboae tor
defense and aid I moderate further balance of payments savlnp vtll be
possible in this area. New intemational marketing procedures by the
Department of Agriculture -- as, for example, the new cotton auction
program -- can also be expected to make & sign1ficant contribution.
- 13 ..
No less significant are satisfactory a.rrangements for the
residual financing of the deric! t, and ample protectioll for the dollar
ago.inot speculative pressures or other emergencies. In developing
facilities for these pUi·poses, we have also been alert to their
implications for longer-range strengthening of' the international
monetary and payments system. I shall touch only briefly on our actual
operations in this area, but Under Secretary Roosa will be prepared to
discuss them extensively.
Prepa~nent of debt has reduced the deficit by about two-thirds
of a billion dollars in each at' the years 1961 and 1962. These
payments have been mutually beneficial. 'Phey provide a capital inflow
into the United States that is definite and final. From the point of
vie"1 of the surplus country, these repayments, eliminating holdings at'
dollars that at the time are excessive, avoid a future stream of payments
that might fall due at less opportune times. When there are traditional
or other pressures to maintain a particular ratio of gold to dollar
holdings in official reserves of SOUle countries, these debt prepayments
also serve to avoid unnecessary movements of gold.
The sale of mediwn-tenu Treasury securities to foreign monetary
authori ties can serve sornel/hat similar purposes, although these transactions
do not have the permanence of debt prepa~nent. A special feature of these
securities is that they can, where both cowltries consider this appropriat~,
be denominated in the currency of the lending country. These securlties
thus provide surplus countries a third alternative to gold or dollardenominated securities in making use of their dollar accruals. The foreign
currency issues must still be conuidered experimental, and their future
depends in large measure upon the response which they evoke frotll the
leading official holders of dollars. But, there are $630 million of' these
special foreign currency medium-term issues outstanding at the present
time. Without the introduction of this instrwaent, transfers of gold
into foreign reserves "QuId probably have been substantially higher.
In addition to these arro.ugements, the lo'ederal Reserve has further
developed its network 01' rcdjJ:co(~al currency agreements 1 provlding foreign
exchange facilities to either party i f needed to meet telUl'orary strains.
The aggregate of these "S\l8.p" fa<.:ilitie5 now totals $1,550 million.
The Role of Bilateral und
MLllli!~1ternl
Arrangements
All 01' these tilatl:r£ll ar:caJ1gem~nts are 1'urtherbuttressed by the
resources 01' the lnternaliollal t4\)Ilt':tary }:o'und, which can provide credit in
case of need on tel"IIlS or 3 to 5 year:.;. 'l'he resources of the FWld we ce
6ul:lplemented during 1~o2, 'When the necessary ratifications were completed
to establish tile slJecialtorrm/ing arrangelilent agreed to by ten 01~ t.he
leading industrialized countries. 'ftlis arrangement makes up to $b billion
of' suppleuleuLary resources available to be used, if ueeded ty a.uy of the
participating COlHltrie5, to meet threat,; to the stability of lhe int.ernational payments 6y5 telll. or tht:se resourc:es) $!~ billion are available
- 14 in currencietl other than U. S. dollars, ifll.l:'Ortantly bolstering the
alJili ty of the Fund to Uleet sizable drawings without exhausting ita
GU1Jply of usable currencies.
'l'hus, 1ilateral and loulUlatel'al f'a.cllities are playin~
cumplementary roles in meellng our needs -- and the needs of other
na tions - - for liquidity and credi t resources. Because 01' the particUlar
nature of the problem facing us J our main effort over the past year has
been t:.o strengthen these facilities through bilateral arrangelllents that
could be selectively tailored to meet iDoediate needs.
Our deficits have a counterpart In surpluses in other countries,
but these surpluses have not been evenly distributed, nor are their
size and location predictable. With one or two e~ceptionsJ the
surpluses have tended to concentrate first in one COWltry and then
another. The countries which hllllpen to be experienCing these surpluses
at a given time are also those which are accumulating dollars, often
beyond their ilQlnediate needs, tbus creating pressure to turn these
surplus dollars into gold. The flexibility of bilateral. arrangements
makes them particularly appropriate and useful 1n reducing these
pressures, inasmuch as they can be directed more precisely to the polDt
ot' need. Moreover, certain techniques -- repayment of debts, for
instance -- can only be arranged on a bilateral basis.
Multilateral arrangelnents, on the other hand l are more useful
I should say essential -- whenever it becomes desirable or necess8l1
to strengthen the international payments system as a whole by addinS
to international liquidity generally. As the PreSident stated In
addressing the Annual Meeting of the Interna.tional Monetary Fund and
the 110rld Bank 1n Washington ius t year, and as he confinned last month
in Europe, the Uni ted States welCODles continuing study of methods to
improve further the functioning and stability of the international
monetary system. The flnWlclal lninisters of the ten countries
participating 1n the speCial I~' borrowing arrangements also stated last
September that they were ready to oontribute to such studies. Clearly,
it is important, even while t.he pressures of our own imbalance are still
upon us, to examine carefully all manner of proposals that may be useful
to us, and to the world, once the current imbalance has been corrected~
new problems eillerge, But these global plans cannot and should not be
regarded as specific correct1 VES for our present problems. I should also
point out that there is widespread agreement that no general shOrtage of
International licIUidl ty is evid.en t at the moment. That is partly because
of the special resources arrangements in the Il4F, 1n the establ1s~t
of which the United States took the lead during 1961 and early l~.
But it also seems clear that the time will come when new facilities or .
arrangements \11.11 be required to ensure for the future an adequate Q'V'er-al
growth in monetary reserves and ered1t availability.
- lS -
'fhls problem has already been studied very carefully by your own
Similar studies
are in process, of course, within the Adminislration, as well as in 1lI0St.
of the other leading countries and international organizations.
Subcommittee and I hope that your studies contillue.
The path ahead is not clear Wld much further work will be
required, but experience with the even more difficult problems following
World War II gives one confidence that as the nature and magnitude of
future needs become clearer to most of us, ways to cope with those needs
can and will be developed. The international payments system has
evolved remarkably well since the days of Bretton Woods, and this process
of evolution toward a stronger system has certainly not been completed.
But as I have already noted, in considering the long-run need for
improvements in the international payments mechanism, we must avoid the
error of thinking that the solution to our present balance of payments
difficulties can be found in such improvements. No international
payments system will relieve countries of their individual responsibilities
to achieve balance in their international pa~nents over a reasonable period
of time. It is, of course, most important that there be an adequate amount
of reserves, suitably distributed, to allow a reasonable period of time
during which the adjustments needed by any particular country can be made.
The United States is prepared to work with other countries to strengthen
and improve the international payments mechanism in this direction. But,
such efforts will be doomed to failure i f other countries feel that we
look upon them as a means of avoiding the steps we ourselves must take
now to bring our payments into balance.
Nor can we afford to delay in the illusion that some system of
flexible exchange rates may somehow offer a painless and acceptable method
of adjustment. Visionary proposals of this kind, which I knoW' have been
brought to your attention from time to time, ignore the basic fact that
the world payments system today -- and with i t the prospects for expanding
trade -- rests upon the interchangeability of gold and the dollar at a
fixed price, and confidence in the stability of other leading currencies.
A regime Of flexible rates among the lnajor trading nations has never,
through the years, successfully met the test of use and experience. The
cost in greater uncertainty, disruption of the highly integrated world
trading community, and a lessened floW' of trade and investment would be
far too high a price to pay. The United States, together with every otht:r
leading nation, is for that reason fully committed to preservation or the
system of fixed exchange rates as the essential underpinning for freely
flowing and expanding trade. That conuoitment is embodied in the Bretton
WOOds Agreements.
- 16 -
Cupitnl Flo .... s
Ulld
Iuterest Differentials
In additiou to developing facilities for financing our deficit and
.... orking t.o....ard a stronger payments system, the United Slates has over
the past two years participated to an unprecedented degree in active and
extensive debate, discussion, and consultation with the other industrial
countries on national economic policies affecting mutual international
objectives, This has been particularly true With respect to factors
affecting the international movement of long-term and short-term capital
It is evident in these discussions that European financial circles
feel that the differentials between the higher interest rates prevailing
in many West European countries and those in the United States are CODtriLuting importantly to the outward flow of capital from this cOWltry,
and that these differentials should be narrowed. For our part, we have
recognized that there is a considerable sensitivity of movements of shor'
term capital to interest rate levels in the various leading countries ••
a sensitivity that has repeatedly been confirmed by those in close touch
with the market, and is often observable In reported data, despite the
variety of other influences at vork at any time.
I would like at this point to address myself in some detail to your
question relating to the degree of sensitivity of short-term capital
movemeuts to interest rate differentials.
Our conclUSion, after study.
ing this matter intensively, is that there are substantial sums of'l1quic
funds that are potentially sensi ti ve to differentials between interest
rates here and interest rates in the Euro-dollar market, and also betweer
rates here and those on British and Canadian Treasury bills and on other
short-term paper in those as well as in Continental European money
markets. This is particularly true when the forward exchange rates fail
to offset most of the actual interest rate differential. Financing of
third country trade through acceptances also appears rather senSitive,
while bank loans to official borrowers or preferred customers and
finanCing of American exports appear much less 60.
Despite much that has already been accomplished through cooperative
action, both in keeping our short-term rates at somewhat higher levels an
in keeping foreign money market rates as 10101 as practicable, existing
dIfferentials are still causing substantial outflows of the more aens1tiv
types of capital. Much of the outflow in April and May, for instance,
appears to reflect increased deposita ot' American firms in Canadian
banks and a sharp increase in American acceptance financing of trade
between foreign countries,
To illustrate the problem, the pull of tbe
Euro-dollar market -- wi th three-month money returning just under 4~ in
London -- is apparent; prevailing yie 1 ds for roughly comparable types of
money market instruments in New York are around 3-1/4~, While existing
differentials wi th respect to most ot' the important foreign markets are
not large, it is impol'ta.nt that we COl1tinUf~ to do all that is reasonable
to narrow tht!lJJ. further in order to n~dllce si~nlricant outflows, and
perhaps in tiu!<~ reVC1'5t'! tlJe dlrc:ction o{ SOUle 01' these 1'lows.
- 11 -
I am avare 01' the fact that the only detailed study heretofore
submitted to you -- that made last swmner by Professor Bell -- has Geen
interpreted as indicating a lack of interest rate sensitivity in over-all
short-term capital movements. This is an area that has until recently
received comparatively little study. This is perfectly understandable
since the :free and large scale movement of short-term capi tal dates only
from the end of 1958, when the currencies of most of the major
industrialized countries became convertible.
The Treasury has, of course, had a close interest in this matter for
In order to increase the availability of information regarding
capital movements, and thus facilitate improved understanding and
knowledge, the regular reporting forms for banks and non-financial institutions have been modified and improved.
A supplementary form for 110n1'inancial institutions was introduced last fall and revised forms for
banks were introduced about a month ago. We expect much new and hitherto
unavailable information from these new forms.
some time.
In a fUrther effort to broaden the content and coverage of our
balance of payments statistics and to improve their presentation, the
Director of the Bureau of the Budget has recently apPOinted an eminent
committee of business and academic economists to study all aspects of
our balance of payments statistics. This committee is chaired by Dr.
Edward M. Bernstein and is due to file its report next spring after a
full year of study.
Paralleling our work on the new reporting forms, \e aloo undertook
early last summer a staff study to examine short-term capital movements
as fully as possible with the available data. We engaged an outside
consultant to assist us -- Professor Peter Kenen of Columbia University.
This stUdy was completed last fall, and indicates a clear sensitivity of'
certain short-term capital movements to interest rate differentials. We
'01111 be glad to make t.his technical stUdy available to the Committee if
you so desire.
Since the completion of this staff study, the sensitivity of shortterm capital flows has been confirmed by a detailed investigation whIch
has just been completed by the research department of the Federal Heserve
Bank of NeW York. This report, which the Bank has authorized us to
i~rnish to your Committee, attempts -- successfully, in my opinion -- to
reconcIle the apparent divergencies in the Treasury-sponsored and Bell
studies.
It poinwout that short-term capital movements include a widt::
variety of capital flows, some of Which are sensitive to interest considerations and others not. It further shows that those types of flowD
in Which our study found a close correlation with interest rate
differentials are precisely the same floW's for which Professor Bell waD
unable to find any correlation with trade movements.
The types of short-term flows which these studies indicate are
sensitive to interest rate differentials includethe following:
1.
Europe;
Dollar claims of non-financial concerns on Cnnada and
- 18 ~.
l"orelgn cu,"r~ucy claiDUi oi"
on Canada and BU1"Ope j
3.
bt:\.lll!.S
and Bon-financial
"Other" bank-reported sbort-tenD claims
Europe; and
4.
011 Calltlda
COIlCC1"Ub
tl.nd
Errors and omissions for all areas cOInuilled.
These four items accounted for between $1. 2 billion and $1. 4 bU lion
of our over-all balance of payments deficit during each of the thl"~e
years 1960 - 1962 when interest rate di:fferent1als i'avored Canada and
Europe.
In 1959, on the contrary, when interest rate differentials
were favorable to the United States .. theBe same :four items accounted for
an inflow of funds that reduced our over-all deficit by some $500 million.
A sizeable part of this difference may be attributed to the interest rate
factor.
The Nev York Faderal Reserve Bank study suggests that a reasonable
reduction of the current differential in short-tenR rates would be likely
to improve our annual balance of payments by $500 million or more.
In
addition, this study shovs that private foreign holders of dollars are
strongly influenced by interest rate differentials. This vould Dot affect
our balance of payments figures but would substantially reduce the gold
drain, since private foreign holders would retain their dollars in
larger amounts rather than tUrn them over to offic1al bolders who alone
have the right to convert tbem into gold.
One more piece of confirming evidence is available. Since last fall
a few large banks have reported to the Federal Reserve on a confidential
basiS the totals of their short-tel~ transactions involving transfers to
Canada and the U.K. on a tully covered basis.
Such transfers are clearly
interest induced and have continued at a substantial pace throughout the
first six months ot' this year. The sample, which makes no pretense ot
being complete, shows over $220 million or such transfers so far this year.
For all these reations, ve are convinced that substantial amounts of
short-term flovs are sensitive to interest rate differentials. This
opinion is also fully supported by the unanimous vj i~WS ot those here and
abroad who actively deal in t'oreign exchange on a daily basis.
Mr. Roosa
vill be glad to answer in full any qu.estions you may bave on this highly
important, but rather technical, subject.
In the case of long-term porU'olio investment, on the other hand, tb,1I
effects of interest rates are much less clear. Such studies as have been
made, mostly by various Federal Reserve banks, fail to show any consistent
correlation between the volume of United States purchases of foreign llJngterm securities and existing long-term interest rate differentials.
However, these studies do sboW' that whenever long-term rates in the Uutted
States are relatively bigh, &.& ill 1959, portl'oliO purcha6es tend to decrease. In spite of these inconclusive findings, European authorities
are categoriC in the!1' views t.hat our pl"eSent long-term rates, which are
- 19 substantially below those in Europe -- except only for Switzerland and
the Netherlands -- are largely responsible for the increasing volume of
foreign long-term borrowing in our markets. Thus, vhile there is
evidence on both sides regarding the sensitivity of long-term portfolio
investment to interest rates, it seems clear that interest rates are
not by any means the only factor involved.
The ready availability of American capital and our well-developed
market facilities are also important. As I pointed out in Rome over a
yea.r ago, our balance of payments problem lim! ts the amount of longterm portfolio capital which we can prudently supply to others. It is
essential for other industrial countries to develop their own capital
markets so that they can do a more complete job in meeting their own
reqUirements. While the last year has seen some progress in this
direction -- most nota.bly in Germany, Italy, and perhaps now in France
it has not been adequate and the demands on our markets are still much
too heavy. Mr. Roosa will be glad to furnish you with fuller information on the state of the various European capital markets and on the
progress that has been made during the past year.
Looking at our payments as a. whole, it is clear that if we are to
achieve balance there must be a substantial reduction in the net outflow
of long-term portfoliO capital as well as a reduction in the outflow
of short-term funds. One means of approaching this objective is to see
to it that our capital market is utilized to mobilize foreign savings
to the maximum extent possible -- that. is, we need to export securities
as well as goods, and to take advantage of the interest of foreign
investors in new dollar issues. We have noted that a large part of the
extensive recent activity in new foreign issues has been carried out
through private placements. These private placements, many of which
are Canadian issues, normally foreclose the possibility of foreign
partiCipation that always exists in a public offering. We have urgently
invited the financial community to explore this problem further in the
hope that it will be feasible for them to make wider use of public
offerings.
Capital Flows and Our Position as World Banker
On the subject of longer-term capital flows and interest rates, I
would like to make two general points of basic importance. First,
purchases of foreign securities are a very small fraction of the very
large total of $50 to $60 billion that is annually placed in mortgages
and other long-term securities in this country. With confidence in
price stability restored, the willingness of Savers to place money at
savings institutions and to commit funds for longer-term investment is
grOWing, and interest rates have been reflecting this increase in
savings. Long-term interest rates in this country mrl.y well respond
over time to growing investment demand in the normal m9.rk<:=t ro.... nner.
However, the approach taken in some quarters abroad that a d.rastic
effort should be made by public policy to raise the entire 6t:cuettlJ't~
ot long-term interest rates by a sizable amount in an effort to sloW'
down the outf'low of long-term capital does not seem to me to be
- 20 -
realistic. It fails to recognize both the practical difficulties of reversing the current pressure of savings flows seeking investment outlets
in this country, and the great hazards for the domestic economy implicIt
in any such attempt.
My second point concerns our position as world banker, and your
question concerning the applicability of exchange controls on capital
flows to our situation. Exchange controls would directly viOlate one
of the precepts upon which our whole effort is predicated -- that, in
our economy, ve must rely primarily upon decentralized deciSion making
by millions of individuals and businesses responding to market forces.
Government, to be sure, must accept the responsibility for influencing
these market forces in ways consistent with national objectives, but
always without attempting to direct individual transactions.
Moreover, a partial system of exchange controls would soon break
down as fUnds flowed through uncontrolled channels -- spurred by the
fear of still further controls. In the end, a complete system of
exchange controls would be required. This would seriously prejudice
the position of the dollar as the world's chief reserve currency,
"WOuld tend to shrink world liquidity and reduce the volume of world
trade, thus bringing in its train grave dangers of a world-wide
economic recession. For these reasons, the institution of exchange
controls, even though supposedly applicable only to certain types
of transaction, is not a practicable or acceptable policy for the
Uni ted States.
Instead, we must continue to meet our ~pecial responsibility as
world banker. Essentially, this is to pursue policies that assure
maintenance of the stability of the dollar free from exchange controls.
In retUl"fl, toreign countries have f"reely and willing1y provided us
with huge resources -- aggregating some $21~ billion in liquid dollar
balances alone. The rise in these balances of over $15 billion since
1949 has financed 5~ of our cumulative deficits over the past 13 years,
Had it not been i'or our position as banker to the world, this credit
lIould not have been extended to us, and we would long ago have been
faced With the hard necessity of curtailing imports, reducing foreign
invest.ment, and cutting into the substance of our defense and aid
spending abroad.
The Surplus Countries
In asseSSing the outlook for our balance of payments, ve must
also look at developments in the surplus countries. The surpluses
that are the cOWlterpart of our payments deficit have for the most
part been accruing to the other industrial countries of continental
Western ~urope. Orderly and constructive elimination of payments
imbalances requires that these surplus countries accept a reaponsibility for pursuing policies which will reduce their surpluses, thus
paralleling U. S. efforts to eliminate our deficit. These countries
should couLlnue to eliminate trade barriers which discriminate against
Our exports.
In addition, it would be appropriate for them to work
toward lower interest rates, particularly long-term rates, offsetting
- 21 -
the effects on domestic demand, if need be, by reLtnctive fiscal mea.sures.
And, finally, it would be helpful if these countries would continue to
share more fully in the burdens of providing for our common defense and
of assisting in the development of less fortunate areas of the world.
Balance of payments surpluses have very real advantages for the
Western European countries, but they create some problems as well.
In particular, they contribute to inflation in these countries, and this
inflationary impact is not limited to the purely fina.ncial implications
of the surplus. A balance of payments surplus is inherently inflationa.ry,
when in a time of general labor shortage and pressure on available
resources, more goods and services are sold outSide the economy than are
imported.
As a result of pressures generated in pirt by these surnltlses, com..
bined with a general shortage of labor, wages and prices in Europe 'have
been rising for the past few years far more rapidly than in the Ur.lted
States, unit costs have been increasing, and profit margins have declined.
This oft'ers us an opportunity to compete more effectively. But, it would
be foolhardy to expect European authorities to sit back, and permit this
inflation to proceed unchecked.
European Governments are already exerting themselves to restrain wage
increases through what has come to be known as "incomes" policy. However,
the natural inflationary forces are 50 powerful that their efforts have
only succeeded in somewhat moderating the tempo of the inflationary
process. But should this process proceed to a point where European countries
find their balance or ~ayments to be endangered, we can expect them to
take strong action irrespective of the domestic consequences.
However,
a generaL disappearance' of ~uropean balance of payments surpluses would
almost inevitably mean the simultaneous disappearance of our deficit.
MeanWhile, the continuation of this moderate inflationary tendency in
Europe gives us an opportunity to bring our own payments into balance, thus
laying the essential groundwork ror the strengthening of the whole international payments system.
But this opportunity must be seized. And ~e
must be prepared to take those further actions that our needs require. For
it is clear that further action and renewed impetus are needed to improve
each of the major sectors of our balance of payments -- our trade balance,
Government expenditures abroad, and the capital account.
The Need for Further Action
In view of the broad authority and influence of this COlDmittee on
the economic policy of the Congress, I should like to take advantage
of this opportunity to stress 'With all the conviction I can summon the
indispensable importance of decisive action by the Congress to enact
during this session a program of tax reduction and reviSion along the
lines generally proposed by the President at the beginning or this year.
The continued progress in our economy since tha.t time, as lIH~h0l).red
by the increase in Gross National Product and other inC1icatorG, tjer'V~ti
to accentuate rather than diminish, the desirability and feasibility of
that forward step. This progress in some part is built on expectll.t.!orw
- 22 -
by businessmen of the dynamic stimulus to investment and consuml'tion
hlhcrent in the tax program. Should it faU of enactmcnt, the frustra_
tions of thcsc expcctations might '"ell arrest the pro~ress and invite
a recession. Horcovar, this progress t promf.sing increased revenues
for the fiscal year 1964 over those earlier estimated in the Presidl!nt'.
JLluuary budget. complemented by reductions in projected appropriations
by the President and the Congress, should ease the concern of those
,,,ho ,,,ere troubled by the size of the deficit as originally pl"ojected
for fiscal 1964.
The passage of the tax program, by adding to the momentUl\\ of an
advancing economy. offers the greatest opportunity in years to move
our econOlUY to full employment. Despite our recent progress, the
rate of unemployment has remained undiminished; last month it was
sUghtly hieher than in June a year ago. '~hi1e our labor force incrc ..lsed over the year by 1,200,000, only 800,000 new jobs were
created. Yet. the Nation is a year closer to its responsibility to
provide ,",ork for the floodtide of youth born in the aftermatb of
\-lorld \\lar II. Twice as many jobs must be created in each of the
remaining years of the Sf.Kties as have been created in the last two
years of an expanding eC(lRolOY if we are to meet the mandate of the
Employment Act of 1946.
The boiling over of racial tensions witnessed in recent lUOllths
should not impair the priority of the tax proeram on the legislative
agenda. For who can doubt that an overriding element in the quest
for equal opportunity and in the frictions resulting therefrom is the
need for jobs and the chance to provide a better standard of living.
housing and education for Negro and white alike. Discriluination is
not likely to be dissipated by pushing whites out of jobs for Negroes,
but rather by creating adequate job opportunities for both.
And. finally. for reasons I have analyzed briefly in my statement.
the enactment of the tax program is central to our baSic objective of
achieving balance in our international accounts and maintaining
confidence in the dollar. A vigorous dynamic and growing American
ec~nomy is the necessary backdrop for achieving the sharp competitive
edge that will increase our trade su~)lus -- for reaching demand and
profit levels that will invite the increasing investment that will
bring our tW'o-\fay capital flows into better balance -- for assuring
our friends abroad that putting dollars to work earning interest and
profits is preferable to exchanging them for gold.
To meet both of our national economic objectives -- growth and
full employment at honle~ and a balance in our international pa}'luentl
and to meet them simultaneously. within the framework of a market
ecollomy. clearly requires further effort. We cannot expect our
problems to yield easily~ but a solution is within our grasp.
To those wbo urge that balance of payments be given the top
priority, as well as to those who urge that domestic gro\/th be an
exclusive preoccupation. I can only reply -- we cannot achieve one
without the other -- we must achieve both if we are to be true to our
national purpose and our international obligations.
u.s. Ba1ance of Pa~ents
Commercial Surplus on Goods and Services
1960-1st Quarter 1963
(In
m~ll~ons
1960
1. Nonmilitary merchandise exports
2. Less exports financed by Gov't.
grants and capital
of $)
1961
1962
Change
1960-62
(Improvement .;)
1st Qtr.
1963
Seasonally
_Adiusted
1-19,459
f19,913
}20,479
';1,020
1-4,998
}1-,919
f2,237
~'1345
f426
f613
3. COMMERCIAL MERCHANDISE EXPORlS (1-2) f17,540
4. NONMILITARY MERCHANDISE IMPORTS
-14 2 723
5. COMMERCIAL TRADE BALANCE
t2,817
f17,676
-14)497
1-3,179
,t18, 134
-16 2 145
f1,989
f594
-1 2 422
-828
f4,385
-3)985
.-i.400
6. Private investment income
7. Other nonmilitary service receipts
8. Less services financed by Gov't.
grants and capital
1-2,873
';'4,307
f3,464
';'4,532
1-3,850
';'4,801
f977
f494
fl,005
';'1,180
f288
~JO
_i5:i8
f250
f160
9. COMMERCIAL SERVICE EXPORTS (6f7-8)
10. NONMILITARY SERVICE IMPORTS
11. COMMERCIAL SERVICES BALANCE
f6,892
-5)434
f1,458
f7,566
-5 2 436
1-2,130
f8,113
-5 2 791
';'2,322
f1,221
-357
f864
1-2,025
-1 2 447
-.i578
f4,275
f5,309
f4 .. 311
1-36
"978
12.
COMMERCIAL SURPLUS
TABLE 2
U.S, Balance of Payments
Balance on
GQvernment_As_s_ist~nc~_~lnd_LoI1g-Term
Capital Acco\lnts
1960-1st Quarter 1963
(In millions of $)
1. Military expenditures
Change
-1960
1961
1962
-3,048
1320
-2,934
1398
-3,028
11,143
2. Military cash receipts
(-16)
(1470)
(of which advances on military exports)
(15)
3. Gov't. grants & capital outflows, gross
(-3.405) (-4.056) (-4,281)
a. Less transactions t~olvin8 no immediate dollar outfl~1
(-2.298) (-2,940) (-3,211)
b. Dollar payments abroad (3 -38)
-1,107
-1,116
-1,070
4. Repayments on U.S. Gov't. loans,
excluding fundings by new loans
,cl,201
IS8S
~l,182
(,t666)
(of which non-scheduled repayments)
(f48)
(/668)
5. U.S. direct and long-term portfolio
investments abroad
-2,609
-2,766
-2.544
6. Foreign direct and long-term portfolio
1430
investments in the United States
~4lJ6
1271
7. Remittances and pensions
-70S
-672
-736
8. Changes in GOY't. liabilities 11 11
1-1
1248
*
(of which sales of non-marketable, mediumterm non-convertible securities)
(:2
(,l25 11
!.:.l
-4,756
-6,035
9.
BALANCE, incl.spec.Govt.transaction~1
-5,299
-6,067
10.
BALANCE, excl.spec.Govt.transaction~1
-6,143
-5,972
*
II
-
a/
~
1960-62
(Improvement .J)
,l20
,c823
1st Qtr.
1963
Seasonally
Adjusted
-741
1-204
(~486)
(~23)
(-876)
(-1,082)
(-913)
(-856)
,c37
-226
;597
/128
(i618)
(/25)
-222
-1,013
-159
-64
1-247
;28
-217
163
(~2S1)
11,279
-76
(;63)
-1,774
-1,885
Less than $500,000.
Comprises principally U.S. merchandise and service exports. refundings of loans of U.S.
Govt. and private U.S. lenders, & subscriptions to int'l institutions in the form of
non-~nterest
Exc1udes
bearing notes.
1~ab.
assoc~ated w~th m~1itary
Exc1ud• • • • 1 •• of non-marketab1e.
transactions and
med~um-t.rm.
~~h
conv.rt~b1.
Gov·t.
Gov't.
ass~stance
secur~t~ •••
operat1oa ••
u.s.
Balance of Payments, Selected Balances
1960-1st gtr. 1963
(In
m~11ions
A. Regular transactions
1. Regular recorded transactions, exc1ud- /
1
ing private short-term capital outflow2. Recorded domestic and foreign private
short-term capital
3. Unrecorded transactions
4.
BALANCE ON REGULAR TRANSACTIONS
of $)
1st Qtr.
Change
1963
1960-62
(Improve- Seasonally
1962
ment tl Adiusted
1960
1961
-1,792
-774
-1,925
-133
-915
-1,438
-68J
-1,364
-905
-623
-1,025
t815
---=342
1-42
-3,913
-3,043
-3 J 573
1-340
-917
/-48
-16
,l668
t666
1-618
/-5
1-470
1-486
1-25
,,23
/-251
/-251
f63
-44
B. SQecia1 Government transactions
1. Non-scheduled receipts on Gov't loans
2. Advances on military exports
3. Sales of non-marketable, medium-term
non-convertible securities
4. Sales of non-marketable, mediuru-term
convertible securities
---.t350
5.
BALANCE AtB, excluding B.4
-3,881
-2,370
-2,186
ll~695
-806
6,
BALMCE AI-B
-3!88l
~~3Z()
-2,186
"c1,695
-456
11 Differs from sum of line 12 of Table 1 and line 10 of Table 2
by the amount of
Export-Import Bank fundings of U.S. private short-term credits. Though not a payment
abroad and therefore not included in line 10 of Table 2, these fundings are already
reflected as receipts of private short-term capital in line A.2 of this table and must,
therefore, also be included as Government outpayrnents in line A.1. During the periods
in question they were: 1960, 0; 1961, Ill; 1962, 93; 1963 1st quarter, 8.
-
TABLE 4
U.S. Balance of PaIments
Residual Financing of the Deficit
1960-1st gtr. 1963
(ID millions of $)
Change
1st
1960-62
(Reductions in Se,
,
1962 Financing ~)
-
li60
_ 1961
1. RESIDUAL FINANCING OF THE DEFICIT
-3~881
-21,-370
-2,186
11,695
2. Increase in sbort-term official &
banking liab. and in foreign holdings of marketable U.S. Govt.bonds
and notes (decrease -)
1-1 .. 137
"1 .. 764
J6SJ
,l1'L_08!t
"_287
,1289
11,083
,c200
189
"376
,11.44,).1
,1681
"453
"995
-89
/:2, 144y
~606
~11S33
"442
1-1,702
';8S7
,,626
"17
';890
,£611
-184
-17
~32
-135
-116
3.
4.
Foreign private holders including banks & int'! & regional
organizations (excl.IMF)
Foreign official holders
5. Decrease in U.S. monetary reserve
assets (increase -)
IMP' position
6.
Convertible currencies
7.
Gold
8.
Jl
llevlsed.
-
-
,1812
-
-46
-33
,e111
IU:I "
1'0& ttlLr'lSE A. 11. dWSPAPf.L\S,
Wed_ada:, dull 10, 196).
'!"rea..,.
USULTS
or
",gF[!NDUhl 0'
1",
t2 BIW(ll 0' 0lIl i au aILIA
The
Depan..Dt announced laat. ...n1_ ~ba\ ,lie , ....... ~--:=t
or tnereaOout., of l66-dar 'lreuury billa to be dat.e4 M1' IS" 196), ... 'July lS, 1964, Vh1eh ..re ottered on July 2, 1IWe ope. . ., , .. ' .... N .... .
J\1ly
.
~.
The detaU. of t.h1a iMue are •• lellOWll.
Total applied tor Total acoepted
...
tk,49S,099,OOO
(lnel. . . ~,nk,ooo
2,000,022,000
....... _.
.."peU"1.... _ ,. . . . . . . ., ••• Ia
_
full."'.................. ...,
(bMp\1Dc el............ total....
*-Ie of aocept.ed CCMapet,1ti•• bide.
- 96.412 Equ1val.D1. raM of
- 96.)42
•
••
Hlah
x...
- §16.)S6
Aft.....
<.rt
•
••
perceat. of tne -mumt,. bi4
fo~
'
d1.eoua ...... J •.,. . . ....
•
•
•
•
).JIIt. •
at the 1_ JIIPl- _
'.5.. T
...",...)
total
,~-".
70\&1
D1t!!1"
Applied top
'!lIP ted
»n r.rt
Be. . .
..
•
Philadelphia
canelADd
at.-..,a.s
Au...
Chioqo
St..
toui.
M1DMt1p011a
IAn ••• Cit¥
o.uaa
3&ll
Francisco
"III
92,060,000
2,852,SJ.6,ooo
se,l71,ooo
~,Shl,ooo
17,6)0,000
1,1'75,33),000
29,~49,OOO
112,428,~
)0,))1,000
8,2)1,000
1),510,000
616,116,000
frS.SS6,OOO
27,01',000
1),221&,000
S.629,000
l!,.1!ft,ooo
6,677,000
l'3,0bIa,OOO
rorAl. .,J&9$.o9J,ooo
.,000,022,000
51,960,000
I6.Ula,OOO
S6,6S2,OOO
'S ,171,000
t6,8~9,OOO
,
"
'.. :
TREASURY DEPARTMENT
-
RELEASE A. M. NEWSPAPERS,
eaday, July 10, 1963.
RESULTS OF REFUND[NG OF $2 BILLION OF ONE-YEAR BILLS
The Treasury Department announced last evening that the tenders tor $2,000,000,000,
Ilereabouts, ot 366-day Treasury bills to be dated July
1963, and to mature
.
15, 1964, which were oftered on July 2, 'Were opened at the Federal Reserve Banks on
1"
9.
The details ot this issue are as tollows z
Total applied for - 84,49,,099,000
Total accepted
- 2,000,022,000
~ge
ot accepted competitive bids!
(includes $214,714,000 entered on a
noncompetitive basis and accepted in
full at the average price shown belOW)
(Excepting eleven tenders totaling $),100,000)
- 96.412 Equivalent rate of discount approx. ).529;t per annUlll
- 96.342
It
It
n
"
..
3.598%"
II
High
Low
Average
- 96.358
..
II"
II
I.
3.562%"
II
!I
(37 percent ot the amount bid for at the low price was accepted)
rederal Reserve
District
Boston
~ew York
PhUadelphia
~leveland
oU.chmond
ltlanta
~hieago
It. Louis
linneapolis
[ansas City
lallas
Ian Francisco
Total
Applied for
92,060,000
2,852,546,000
58,377,000
246,543,000
30,331,000
51,960,000
686,276,000
26,424,000
27,029,000
56,652,000
35,177,000
329,724 l ooo
TOTAL 84,495,099,000
$
Total
Accepted
$ 27,630,000
1,075,335,000
29,949,000
112,428,000
8,231,000
23,510,000
575,556,000
13,224,000
5,629,000
26,809,000
8,677,000
93,044,000
$2,000,022,000
coupon issue ot the same length and for the same amount invested, the return on
'se bills would provide a yield of 3.14%. Interest rates on bills are quoted in
'IDS of bank discoWlt with the return related to the tace amount of the bills payable
\oaturity rather than the amount invested and their length in actual mnnber 01' days
Ilted to a 360-day year. In contrast, yields on certificates, notes, and bonds are
I~uted in terms of interest on the amount invested, and relate the number of days
1t.1ning in an interest payment period to the actual number of days in the period,
1 semiannual compounding it' more than one coupon period is involved.
Statement of Stanley S. Surrey,
Assistant Secretary of the Treasury,
before the House Committee on Ways and Means
on H. R. 3846 on July 10, 1963
Two features of this bill are of special interest to the
Treasury Department:
the accounting for the funds to be used for
the Land and Water Conservation Fund, and the revision of the taxes
on special motor fuels and gasoline.
The bill would require the Department to set up a separate account
in which to aSSign the revenues from the sources specified in section 2
of the bill, that is, admission fees to parks, revenues from sale of
surplus lands, and the taxes on fuel
used in motorboats.
This special
account, under the terrrls of section 3 of the bill, then would be divided
between a newly prescribed Land and Water Conservation Fund and the
miscellaneous receipts of the Treasury Department as determined by the
PreSident.
Transfers to the miscellaneous receipts of the Treasury
would represent such sums as the President deemed appropriate to help
offset the cost of acquiring additional lands for public recreation
and fish and wildlife enhancement financed through appropriations to
water-resource agencies.
In addition to accounting for the receipts from the specified
sources, the Department would have the function of determining the
revenues derived from the taxes on special motor fuels and gasoline
used in motorboats.
Under section 7(d) of the bill, revenues from
fuel used in motorboats would be paid from time to time from the Highway
Trust Fund into the separate account from which funds are transferred
- 2 -
to the Land and Water Conservation Fund.
Amounts so transferred
would be determined by the Secretary of the Treasury after consultation with the Secretary of Commerce.
Withdrawals from the Highway
Trust Fund would be equivalent to the taxes received on or after
January 1, 1964 with respect to fuel used in motorboats.
Changes in the present taxes on special motor fuels and gasoline
would raise the effective rate on such fuels when used in motorboats
from 2 cents to
4 cents a gallon. The 4-cent rate is the general rate
at this time, but a 2-cent rate is in effect when such fuels are used
other than in a registered highway vehicle.
In the case of special motor fuels (SUCh as propane and butane),
the rate is set at 2 cents a gallon if such fuel is sold for use otherwise than as a fuel for the propulsion of a registered highway vehicle.
Where such fuel is purchased upon payment of the 4 cents a gallon tax
and subsequently not used for the propulsion of a registered highway
motor vehicle, provision is made for refund of 2 cents of the
tax.
4 cents
In the case of the 4 cents per gallon tax on gasoline, provision
ismmilarly made for refund of 2 cents per gallon of the tax if such
gasoline is used otherwise than as a fuel in a registered highway motor
vehicle.
There is no tax on diesel fuel used in boats.
The diesel
fuel tax is limited to fuel used in a diesel-powered highway vehicle.
Furthermore, both the taxes on special motor fuels and gasoline contain
an exemption for fuel used in commercial fishing boats.
- 3 H. R. 3846 would increase the effective rate of tax on special
motor fuels and gasoline used in motorboats to 4 cents a gallon in
two
WB¥S'
In the case of special motor fuels, the increase would be
achieved through a revision of the imposition section of the law to
include use in motorboats along with use in registered highway motor
vehicles as a use incurring the 4 cents a gallon. rate.
In the case
of gasoline, the result would be achieved by excluding use in a
motorboat from the list of nonhighway uses of gasoline qualifying
for a 2 cents a gallon refund. .The changes would be effective for
special motor fuels sold, or used, on or after January 1, 1964, and
for gasoline used on or after such date.
Although the apparent effective tax rate on fuel used in motorboats
is now 2 cents a gallon, available statistics indicate that few operators
of motorboats take advantage of the privilege of obtaining a refund of
tax on gasoline used in their boats.
While special motor fuels can
be bought for use in motorboats at the 2 cents a gallon rate, there
apparently are few motorboats operated on these fuels.
Consequently,
the proposed change in the law would have little real effect as to the
amount of tax effectively paid on fuel used in motorboats.
At the
same time, in view of the apparent small number of refund requests
on motorboat gasoline, the estimated revenues from the 4 cents a
gallon taxes on fuel used in motorboats would largely represent a net
reduction in the income of the Highway Trust Fund.
We estimate that
'.)
u
(:
- 4the revenues from the 4 cents a gallon taxes will be about $3 million
in fiscal 1964 and $26 million in fiscal 1965.
The low figure for
1964 is occasioned by the January 1, 1964 effective date and the
seasonal factors associated with pleasure use of motorboats.
President Kennedy's letter of February
14 to the President of
the Senate and the Speaker of the House of Representatives stressed
the need for an aggressive program to provide for our present apd
future outdoor recreation needs.
The PreSident, drawing upon the
findings and recommendations of the bipartisan Outdoor Recreation
Resources Review CommiSSion, emphasized the growing demand for such
facilities and the inadequacies of resources now available.
The Land
and Water Conservation Fund proposal is intended to help meet these
needs by providing a formal long-term program of financial aid to the
States for
the~pansion
of their outdoor recreation facilities.
ExpanSion of Federal outdoor recreation facilities also would be
facilitated by the provision of a continuing source of funds to
finance land and water acquisitions.
The use of receipts from the taxes on fuel used in motorboats to
finance a minor part (about 20 percent) of the proposed Federal cost
of acquisition and development of outdoor recreation facilities seems
reasonable and appropriate.
Recreational lands which Will be acquired
and developed by moneys from the Land and Water Conservation Fund will
include water areas or, in some cases, provide access to water areas.
- 5Additional Federal and State outdoor recreation facilities will
provide the greatly expanded number of motorboaters of recent years
with more and better facilities to make use of their boats. And as
indicated above, the proposed increase in the taxes on fuel used in
motorboats probably will be largely theoretical in effect.
Operators
of motorboats therefore will not pay much in the way of an increase
in fuel taxes, but at the same time their fuel tax funds Will help to
provide facilities which will be of value to them.
The proposed realignment in the use of the funds derived from
the taxes on fuel used in motorboats will, of course, reduce the
moneys available to the
Highw~
Trust Fund from January 1, 1964 until
its planned termination in 1972.
about $284 million.
Presidentls
Highw~
airw~
We estimate this reduction as being
In this connection, I should point out that the
user charge proposals also would affect the
Trust Fund through removal of revenues derived from the taxa-
tion of gasoline used in aircraft.
We estimate the airplane gasoline
revenues at $207 million over the life of the Highway Trust Fund.
The letter of Secretary Dillon to the Speaker of the House on
Februar,y 28, 1963 pointed out that these two legislative programs,
under the terms of the HighWay Revenue Act of 1956 and present revenue
projections, would reqUire withholding from apportionment a total of
$369 million of the authorizations for the fiscal years 1968-1971 for
the interstate highway system.
This is a minor sum in the total of
- 6 -
the
Highw~
Trust Fund or the interstate system.
Fund will be receiving over $300 million a month.
during the rest of the life of the
Highw~
By 1968 the Trust
Thus, a reduction
Trust Fund of revenues of
$284 million, or even $491 million, would require only a few weeks
extension in the dedication of present revenue sources to such Fund.
In fact, however, no adjustment in the life of the Fund
m~
be required
if revenues run even slightly higher than present projections.
201
I
I
I
I
TREASURY DEPARTMENT
July 10, 1963
FOR IMMEDUTE RELEASE
'i"REASURY MARKET TRANSACTIONS IN JUNE
During June 1963, market transactions 1n
direct aM guaranteed securit1es of the govern-
ment for Treasury investment and other accounts
resulted in net purchases by the Treasury Department of $73,860,400.00.
000
D-900
TREASURY DEPARTMENT
5tt.:!!lf2'2'ss:z:;a:t!J.-.~=:a:LZ:::SZ
\ <Wlic:a:'+
:!! d •
_.':"
..J'
•
WASHINGTON. D.C.
July 10, 1963
FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN JUNE
During June 1963, market tran38ctiona in
direct end guaranteed securities of the government for Treasury investment and other accounts
resulted in net purchases by the Treasury Department of $73,860,400 0 00g
000
D-900
- 3 ~
-~-.-------
and
cxch~.n~·~
tenders will receive CquM treatment.
Cash adJustments Vill 'be _
for diffcrcncco bctuccn the Jl3X w.lue of mOoturing bills accepted in exchange and
the tacue price of the new bills.
~rhc
income derived froll)
Tr~o..sury
bills, whether interest or gain tl'Oll the
1&1
or other disposition of the bills, does not ha.ve any exemption, as Buch, and loa,
trom the Gale or other dir.po3itlon of Treoaury bills does not have any special
trer tm-:nt,
O'l
such, under the Inteml1l Revenue Code ot 1954.
The b1lla are subJee
to cr;tl1.t-.e, inheritance, girt or other excise taxes, wether Federal. or state, but
a.re exempt from all taxa.tion nov or herca..rter imposed on the principal or ilrtenet
thereof by any state, or any of the possessions of the United sta.tes, or by 8DJ
loc:J.l. l.oxjnl3 Eluthority.
For purpOGes of tS.::13.tion the amount of discount at which
Trc:'Jsury bills ore originally Dold by the United states is considered to be 1D-
terc:;t.
Under Sections 454 (b) and 1221 (5) of'the InternaJ. Revenue Code of ~
the emount of discount at which bills issued hereunder are sold 1s DOt cODB1dere1l
to accrue until such bills are sold, redeemed or otherwise disposed of, and _
bills are excluded from consideration as ca.pital. a.ssets.
Accordins11, the ower
of Trea.sury bills (other tban life insurance companies) issued hereunder Deed lD
clude in bis income tax return only the difference between the price paid. tor ..
bills, whether on original issue or on subsequent purchase, and the amount act1lll
received either upon sale or redemption at ma.turity during the taxa.b1e year tor
which the return is made, Ba ordinary gain or loss.
Trea.sury Department Circular No. 418 (current revision) and this notice, pII
scribe the terms of the Treasury bills and govern the conditions of their.i...•
Copies of the circul.ar may be obtained from any Federal Reserve
]3a.Dk
or Jr8IlCh.
- 2 -
~
-
ecimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders
e made on the printed forms and forwarded in the special envelopes which will
e supplied by Federal Reserve Ba.nks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
rovided the names at the customers are set forth in such tenders.
Others than
w1ng institutions will not be pennitted to .submit tenders except for their
m account.
Tenders will be received without deposit from incorporated banks
trust companies and from responsible and recognized dealers in investment
~
!curities.
Tenders trom others must be accompanied by payment of 2 percent of
Ie face amount of Treasury bills applied for, unless the tenders are accompanied
an express gua.ra.nty of payment by an incorporated bank or trust company.
Dmnediately after the closing hour, tenders will be opened at the Federal
serve Eanks and Branches, following which public announcement will be made by
e Treasury Department of the amount and price range of accepted bids.
Those
bmitting tenders will be advised of the acceptance or rejection thereof.
The
creta.ry of the Treasury expressly reserves the right to accept or reject MY
all tenders, in whole or in part, and his action in any such respect shall be
tal. ·Subject to these reservations, noncompetitive tenders for
18
for the additiona.l bills dated
aN
, until maturity date on
,
~o
April 18, 1963
Ootober 17, 1963
or less for the 182
, ( 91
$ 200,000 or
~
5(U9k
days reme.in-
) and noncompetitive tenders for
lW
-day bills without stated price from any·one
~
der will be accepted in tull at the average price (in three decimals) of acted competitive bids tor the respective issues.
settlement for accepted ten-
s in accordance with the bids must be mAJie or completed at the Federal Reserv~
ka on
July 18 , . 3
' in eash or other immediately available funds or
llike face amount of Treasury bills maturing
July Im:t.963
•
Cash
'l'REA.SUR! DEPARI'MENT
washington
July 10, 1.963
FOR D1MEDIATE RELEASE
_BBBBBBBBEf:
TREASURY'S WEEKLY BILL OFFERDG
2,~+,QOO , as :follova:
91
-day bills (to maturity date) to be issued
(CiiJ
in the amount of
f8f
$ 1, 300tii" ,000 , or thereabout a , represent.
ing au. additional amount
and to mature
.
,
July 18, 1963
ot bills dated
October 17 J 1963
(dij
amount of $ 800,442,000
(di
April 18, 1963
(C8J
, original] y
issued In the
,the addlt1oDa1. aud original. billl
to be freely interchangeable.
182 -day billa, for
$ 800,000,000 , or thereabouts, to be dated
(tiJ
July .1963
iHJ
, 8I1d to mature
'l.'he bllls of both series will be issued
OD
January 16" 1964
•
(CiiJ
a discount baaia under competlU'
and DOncompetitive bidding as here1naf'ter provided, aad at Mtur:l.ty their
tact
8llOUUt will be payable without interest. !'hey Will be issued ill bearer tol'll 0Ill
and 1D. deDaD.1natiODS
ot $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 uI
$1,000,000 (maturity value).
. Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closiDS bour, ODe-thirty p.m., Ea.stem~ t1me,
)bnday,
July 15.
ldiU
1963_
Tenders will not be received at the !reaau1'7 DepLrtment I W&shiDgtoD. 1BCh-!DUst be for an
eYeD
JDUltiple ot $1,000, and 111 the case of competitive t __ -
price of'tered must be expressed on the basis of 100 J with Dot more tbaD.
t~
TREASURY DEPARTMENT
July 10, 1963
FOR IMMED lATE 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
$2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing July 18, 1963,
in the amount of
$2,100,781,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of $ 1,300,000,000, or thereabouts,
additional amount of bills dated April 18, 1963,
1II8ture October 17, 1963, originally issued in the
$800,442,000, the additional and original bills
interchangeable.
July 18, 1963,
representing an
and to .
amount of
to be freely
18~day bills, for $ 800,000,000,
or thereabouts, to be dated
July 18, 1963,
and to mature
January 16, 1964.
The bills of both series will be issued on a discount basis under
lompetltive and noncompetit1ve b1dd1ng as hereinafter prov1ded, and at
qturity their face amount will be payable without interest. They
'1111 be issued in bearer form only, and in denominations of $1,000,
~5,OOO, $lO,OOO( $50,000,
$100,000, $500,000 and $1,000,.000
(mat urI ty value J •
Tenders will be received at Federal Reserve Banks and Branches
.lp to the Closing hour" one-thirty p.m., Eastern Daylight Saving
ime, Monday, July 15, 1963.
Tenders will not be
at the Treasury De~artmentJ Washington. Each tender must
e for an even multiple of ,1,000, and in the case of competitive
enders the price offered must be expressed on the basiS of 100,
'lth not more than three decimals, e. g., 99.925. Fractions may not
e used. It is urged that tenders be made on the printed forms and
orwarded in the special envelopes which will be supplied by Federal
eServe Banks or Branches on application therefor.
~ceived
Banking institutions generally may subm1t tenders for account of
ustomers provided the names of the customers are set forth 1n such
enders. Others than bank1ng institutions will not be permitted to
~bmlt tenders except for their own account. Tenders will be received
1thout deposit from incorporated bankS and trust companies and from
~8ponsible and recognized dealers 1n investment securities.
Tenders
rom others must be accompanied by payment of 2 percent of the face
~unt of Treasury bills applied for, unless the tenders are
~COtmpanled by an express guaranty of payment by an incorporated bank
~ rust company.
0-901
- 2 IIiUIlt!Jll:lt~ly al"ter the closing hOUI', tenders will be opened It
thd l·'uJt!'ral Reserve Banks and Branches, following which publ1c
announcement wl11 be made by the Treasury Departmment ot the amount
and pr.lc~ l'ange ot accepted b1ds. Those 8uban1ttlng tenders w1ll be
adv1se,l of the acceptance or reJect10n thereot. The Secretal"1 ot
the Ttteasury express17 reserves the right to accept or reject anr or
all tenders, 1n whole or in part. and his action 1n allJ" such respect
shall be f1nal. Subject to these reservations, noncompetitive
tenders for $200,000 or less tor the additional bills dated
1\ pJ"i I I 8 > 1~1I ]
(91-4a1" remaining unt 11 maturitf date on
OvLtlhl'l- Ii', ]9/':0 and noncompetitive tenders tor ,100,O{)()
or la~8 for the 1~2-day bills without stated price trom anyone
bidder w1ll be accepted 1n full at the ave rase price (in tbree
deC1aAala) of accepted oompetltive bids tOI" the respective iSSues.
Settlement tor aocepted tenders in accordance w1th the b1ds mult be
made or completed at the lederal Reserve BankS on July 18~ 1963,
1n cash or other immediately ava1lable tunds 01" In a like tace
amount or Treasury bills maturing July 18, 1963.
Cash and.
exchange tenders w111 receive equal treatment. Cash adjustments
wl1l be made 1"01" dlfforences between the par value of' maturing
bills accepted in exchange and the issue price ot the new billa,
The inoome derlvod l'l'OIR Treasury bills, whether 1nterest oX'
gain from the sale or ot.her disposition of the b1lls, does not have
any oxen~tlon, 8& auch, and 1088 trom the sale or other disposition
ot Treasury bIlls does not have any speoial treatment~ as sucb,
uncler the Intemal Revenue Code ot 19~. The billa are subject to
estate, inheritance, gltt or other exei.e taxes, whether l'edel'fll or
State, but are exempt troa all taxation now or bereatter 1mpose4 on
the principal or interest thereot b1 anv state, or any ot the
possess1ons ot the UnIted States, or by alQ' local taxing autborltJ.
POl' purposes or taxation the aaount ot discount at which 'rreaaul'f
bills are or1g1nallJ sold b¥ the United States 1s considered to be
1nterest. Under Sections 454 (b) and 1221 (5) ot the Internal
Revenue Code of 1954 the amount or disoount at which bills issued
hereunder are sold is not oonsidered to aoorue until suoh billa a1'8
sold~ redeemed or otherwise disposed ot, and such bills are exolud~
from conSideration as capital assets. Aocordingly, the owner ot
Treasury bills (other than life ins\1~ance oOlllPanies) issued hereunder
need include in his inoome tax return only the difference between
the prIce pa1d tor such bills, Wbether on or1l1nal issue or on
subsequent purchase, and the amount aotuallJ' received either upon
sale or redeJDption at aatu1'1ty during the taxable year tor whiob the
return 1s made, as 0l'd1na17 gaIn or 1088.
Treasury Department Circular No. "-18 (current revision) and thll
not1ce
pres~r1be
the
te~s
conditions or their iSBue,
ot the Treasury bills and govern the
Copies of the circular may be obtained
nny ~ederal Reserve Bank or Branch.
oOQ
r~
238
!UlStJRY DlPAIl1'MEIIt
~D.c:.
na.l!mL\U 81' r. Sf
0-902
THURSDAY, JULY 11, 1963
PBAIlmWl! DATA ON D!PORl'S PCB CONstDiPTlOX at tl!iUANT1PAC711lm) LEAD OD ZINC CIWU2 4 SY:
at IUSlDaUAL PBQCUMAUOH HO. '257 fa SEPfilmEll 22. 1'51
CDAla'IIUoT CDDt& PIBlCID -
Julj
1.1gb) -
DlI'OBtS •
vu I,
I,
_ _ _ _ ~I1'ilI -"1
~_ ~
I
1
or
1
_________ ~
_~
_~.~ft •••
Dutiable. Lead
lJa:)orh
1
Duthbb
cuota
L'5~:i
PO\l!d.s)
10,080,000
2), 68Q.OOO
1 363
·~r
~f
n',~~dj
1
1
I
'.f.
1
•
Uno-bearing ana ot i l l IdDds. a Zino 1~ blooka. plea, 4r .l&b~.
exeept pyrites OOQtUn1ng nO"\ , 0111 INI.Q wom-on z1u, t1~
avll' .3~ ot d.Do
I oal.7 to be f'GIalIUtac'tuJ"le4 %lao
,
dro . . , and. Uno alcUIaln.ga
-~- --~:~3z'r"..
Il::lOl"h
I
QIO"ta
1N4;la.ble lln::
lPoWlliS
ll:looM;~
5.440,000
Bel g1 UIII and
Luxs:lbuPg (toial)
BoUna
Cula.d!1
5,040,CK1O
<:, }08, lei;;"
l),,"O,OCIO
421 ,:.9)"
-
It&l7
Me xi 00
PePll
so.
AM ••
1&,160,000
2,i27,b'i
1",880,000
14,8dO,OOO
-
l\aIJOS lll'ria
All crtbar to_11ft
oou::s\ri... (~tal)
.. 'm ) (..r t.!li
The
.L~~.
coun\r , • •
II.!J,
0
!"h
5,026
Belgian CODgo
Vb.
1'mI " "
I
I
(Pounds)
IO,OtlJ,OJO
30, 1'163
l.'m! ' " ___ ~~____
ITEM ,,2
Leaa-biiI"llOD or base biilllon,
%Qla.rtQrl.v-Ct1ota-------:~~Ii
Au at rILlla
~,
1j
LeI11.be~ OI'8S,
Pro duoti on
I
JU
I lead in pip a.ad ban, lead
Qu. dtlrt, I drosa. NOW!ll3d lea.d, 8~:"8.;I
&nd IIBU"
a lea:!, ant1!lon1&l 18M, anU·
& :aoQ.1&l .orap lead, type lIIat4l,
I &11 allQ"a OJ" oaDb1n.atiOEU of
I
Ccnmtl'7
1963 -
.)e>temier
to rB Ql1t1tJS ISfUUSB'D
f
c,ufttry
h ......
8
150.52.,·
".480,000
780.035
6E.,liI:lO,I)OO
7,520,000
37,840,000
',0;'>3,71,3
",180,000
1t,232,144
1Or'so. 000
11,357,1j91t
',320,000
12,uo.ooo
1,400,9Y:'
'5.120,000
1t78,590
',760,000
,,6Oa,ClOO
•
',080,000
•
-
1,620,(J16.
6,080,000
720,878
17,810,000
12,640,70~.
C.DIO,OCIII
6,060,000
I '.)'6 ~ .
o~s,~~.t'~n • • ~c
t _ ... n
no, 000
15.?'O.000
'.5&0,000
.J LJ, I)'
IS,
7,520,000
.::h .. roucd.
th~tie
.p~c'iied
in Preeidcntia.
Procla •• 1ion No.
3257 cf Septemb€r
2~)
,~~s.
Sin~~
tn.t date tn. n •• ca
~f
c.rt •• n
TP.E.l.St!RY l7.tPAAt'..l.QIf
ksl:d.~...c, D. c:. .
~lA.U
mE'q
D-902
THURSDAY, JULY 11, 1963
ImIoI'.KDWIr DAtA OR I!:?OM'S FCa CO!'l"51l:-!PT!ON fl1 WW.hW'AC'.'1h!Zj) IJ:AJJ ,lj."D ZD1C cmA.aC:~.UIl..:c '1'0 _
~LAW.UOlt ;<0.
BY Pm:SIDEH'i'LU.
CIUJlHBLT CIIlOfl.
RQIaD -
July \,
Df!OIl!S ~m
Jut)'
• Lead
tIiilUou
Or'
Il-ue
s:&P'l~
(or a
noted)
~m
£\ilU.o~
~m
I
I
:
I
•
k1Dds, I Z1no
I lu4 Sa p1ga an4 ban, led
• Lea.d.beU'1l16 ClNS, au. =st, I d..-ou, NoWcsd lud, 1I~:."S.i»
Z1u:I-l3i1aring QnS ot &ll
a
and. aaU..
: led, ant1.!:tot11a.l. le5.d, L"l.t1,exc.ept pyrUn oonta1n1113l1.C't
•
I :IIcu1&l aCMqI lead, ~. lI:aW, I
aru' 3~ of d..Do
•
I all allO$. or o~blna.tlor:ur at I
ot
h-oduotiOD
•
J'
...
lead u.s.?t.
:QarieE'l.T cuota.
l~rl.1 C-lata
• l>atla.bl.. 1.ea4
Im;J()l"t.__ s D>.ltbbla L~:l
I1:?orta
(JicwiDdsj- - - - - ---{POWiois) --. -
..
~--
lO,DlO,oao
Aurt.rU.1a
10,080,000
2,3,680,000
-
Bel,s.az. Cou.
-
Belg:1ua azul
LuD:aWrc (total)
.aUna
5.010,000
2,S08.~85"
1,,,"0,000
427,593"
--
~
Ital.T
lleJ:1oo
PeN
l',Uo,OOO
2,227.819
lID. So. .&.tr1oa
14,Il10,000
14,880,000
-
!Up_lona
0\.,.,. h"S..
a~rl.•• (total)
All
',S'O,OOO
-
15.
no.
oao
-
780,035
-
66,1j80,OOO
I cal.T to be NlI3:lUta.etUPad, :1.zIo
dr-o •• , 8:u1 Uno aki:aSng
:
'~E'lT
C&0"t&
: BY liel
I=o~.
1,520.000
7,520,000
,.,,840,000
'.023,7 i1 3
,.~,OOO
1O,4So.00a
11,357,i!9i.t
12.*-000
1.IjOO.935
'5,l2O,ooo
1t78.590
',080,000
al.a.ha;
n.1;
I
.
",292, fijI;
-
Or'
~OOO
-
." •.&ap,ooo
1la. bloOD, piSS,
a.c.d ..-orn~ :1D1S,
-
",180,000
l.s.?'O.aoo
150,529"
5,026
t_
:c:wu-tal'l,;r Qucr..a.
I D;Jt!a.bla Un.c!J:pQ:"h
. - ----li'OW:ii1i
a old
I ,620,i)l6.
6,080,000
-
11,MO,OOO
',320,000
,,'/EIJ,OOO
720,878
•
-
'2,640,703"
'.OSO,OCD
6,080,000
u. C)f ..lui)' S .. '963.
The .L .. ve c~ .."tl:"f
cowntrl&6
5. 1963
..Iuly
I
countr'T
·'_;>"rts
OOt:1lJ.S ESnm.fSEE:D
22, 1'51
196~ - Septemte,. }O, 19&3
I. 1965 -
~m
•.
32.57 CI
h~~c
oi.,sisn~ti ..ns 2r1! 1.I-\'.:>ISe speci;ied in Pre.idential Procl.aa .. tion NC)o 32~7 cf Sl!p~" .. b£r 22,
tl€n
:hcn9~~*
19~5.
Sine., that datI! th. n.ac. cf
e.,~t~in
'IRDmII' DINIlftIaIt
~D.c.
IUDUt'1 all nSi
D-903
THURSDAY. JULY 11,1963
PBG·1JIDILRr
au
OK DPORfS PCll CONstDfPUOK
or tImWn1FACttmiD LEAD .lHD
BY fUlDmw. JIBOCI..UIUIOJl »0. 32S7
r!f
ZINC c:B.\llClZdLI fO !B&
SIPRIIBEa ~ 1'51
QlIf1tM arlBt.lS8IP
ClJABDIUoT CIIDf& RRlGD - April', "63 - June 3J, 1;103
DfIQBtS _
•.
•
CountPT
of
I
I
Produotlon
•
•
j
')r i
I I, 1303 - Jun.
~:).
1)65
,,2
m:K ,,1
ITEMOJ" ban &llnoo, I
l'm4 ' "
M1I " "
• Leiid biiluOIl
I
• lu4 lD pip aDd ban, leu
I
LellLd.bearing orea, flue dun,. elros., NGWmad ba.d, .~!"lI.;J
: Uno-baa.riD.g ores Dr all Jd.D4s"
Zino til bloob, pip, cu- .l..a.ba.
Uti
I led, antl!lonlal 18M, ant!I except pJ'1'Ue. ooa't&!nSDg not
'old INld wam-o.n %1114, n.t
I 110111&1 IOrsp lead, type matal, &
OYlr ,~ ot d.J2O
J oalz to be I"IlIIBlIUt&e'tund, UDO
J all &110)"' op oClllblna:t1oM of
t
I
dro•• , aDd Uno .Jc1.:IIalDa;a
t
lead D •••?r.
t
1~J"li Q.lota
:Qza.r1;.rl.7 cuota.
orb I Dutb.blt Ls%:l
ol"ta ,Dutl.&ble Un:
l=IPorh :
on.
_'t..
lPoIiD1e
PIIUIlds
10,010,000
Aunralla
IO,OtlO,OOO
2),6IO,CIOO
-
2~,o&O .. OOO
5.440,000
~,1,3'::1,ol;(
7,.,000
7,'.;~O,OOO
b6,480,OOO
n, NO, GOO
37,0'/1),000
70,400.JOU
',J20,OOO
0, !OI
32,1';6,'17b
"760,000
3,7:-a,obo
•
Jldllaa COD.
IIlslWl IIIUI
LuzsmbuPg (total)
Bo11.da
,,010,000
5,040,000
Cuads
1".w,O,CIOO
4,OJi £,6ti9
-
ltal;r
x.xs.oo
hl"ll
l'~l~,OOO
II~,
Ill. So. AMe.
U,I8O,aoo
11j,880,OIlO
-
Tup_1wla
All Dt:ber , .. .1 .
oau:nrl•• ('total)
',,so.OOO
lui) ,000
",!>bO,OOO
"'110,000
56,d&0,OOO
7O.4eo.-
12,110,000
12,e7:1,6q~
",120,000
15.,.,,000
I ';,dd'·,O·'S
1s.7Co.aao
1';;,760,000
',080,000
0,080,000
",~.OOO
-
17.IIO,CICIO
Th,. .. L ..... " cc. .."\rJ d ... i.n.U<t'na ar" ~"'''5'' specified in Presidentis' Pracl .... tia" lIle. 3257 of Septeaber 22,
count .. , ..............
It ........
-=.h ..... Uecl .. "
-
,,_.000
,I:~O
•
-
17,01,0,000
I:·~S.
I...,"
Since fll.t
.,.t"
6,0&0,000
it•• " ... " . c.t cart •• "
IlW..StIRr
JmI~
~J).c.
~L\H
mr.S'
D-903
THURSDAY, JULY 11,1963
I'RJ:LDalllR! UTA ON DPORrS l'CR CO!olSID!PTION 01 mlW..NU?AC'?U?ZD I.,~ AND
BY pru:SIDilffLU. l'ROCLlJ!A'rION NO.
CIWl'RRLT GDOfI. PERIOD ..
3257
f!¥
Countl"1'
or
Produotion
Imi "1
t
I
Les.~...be~ ONS,
aUG cbrl, I
&I1d. ;::attea
t
a
a
,
,
:Q.Jartarly
f
cn~
Dtrtlabla. Lead
10,080,000
Aalrtr&lla
rz:r.,ons: Dutb.!:>lt L!t<l.:l
pOwl::lsT--- ---
10,080,000
-
--- -
Jun~
ft.eS_?_r.
QIJ(1lJ.$
23,680,000
t
:~a1'l.r CUo1;a.
~ol"ta
I
Du";la.ble Zinc
li>oWld.S
a
23,650,000
a
...
~~buPc (~ot&l)
CuIatb
5,01.0,000
5,040,000
13,44.0,000
4,042,669
-
It.al.T
Mex:ioo
Peru
1',160,000
16,160,000
UIl. So. .&.tr1e.
1.&,880,000
14,880,000
-
TlasoslOT1a
All other tbrelp
'~56o,OOO
o~n.. (total)
th", aL,,"r cc;..ufttry
count.r'~6
h~".:
cit::~'6jt,Cct"i('lon~ are
t .. En
::-Nn9~d-
6,~60,ooo
",180.000
36,880,000
1D,tao.OOO
12.880.000
12,878,692
'5,120,000
~S,1Q),OOO
15,760,000
',080,000
6,080,000
lS~no~OOO
15,885,095
."~489.000
-
t.h~$E; specified in Pre6id~ntlal Procl.a •• tiDo No.
ort.
Il:ocrts
Belgium aDd
Bo1t.rl&
ESfWrlSHED
30, 1963
I
{POWloi.s}
-
Belg1a.D. COQgo
Y1m
ITO! ,,2
:rrm ' "
ITZ!I 32:4
Leu tiUIi1ol1 01' ba..36 bUllion. a
,
lead. 111 plg1 e.nd bars, lead
a
,
ci.."'OS8, ril"LUoad lea.d, =~:-a.;>
Z1'n~-'o\\a.r1ng ores or a.ll k1PM, l Zino in bloan, pigs, or al.a!ls;
le:'cl, Ultbonlal lesd, antl.,except pyrites oO!l~n~ not , old 8ll.d ycrn-.xn zina, n'\
:1100.1&1 sora,p lea.d, type ltiW, I
0711" 3% or dno
, onlz to be ra~ra.e'tW'"l d, %!.no
all alloys Or' o~tllnatloo.a of' I
t
dre . . , and nne alcUnl.nga
,.
111M
:~arl,y CU:>ta
I
CIU.R~ '0
22. 1,.51
Apri 1 I, 1963 - June 30, 1963
DCPOafS. Aor i l l , 136; -
I
J
I
I
z:mc
S£Pr~
3257
-
11,~OOO
cf Sep~e.b£r 22,
5.440.000
5,l;38,o41
7,520,000
7,520,000
..,;
66,480,000
37.&40,000
37,b4il,OOO
,.&co,COO
70,400,IlOO
'.320,000
6,301,820
32,166,976
"760.000
3.758,066
-
17,&40,000
1958.
Since
6.080.000
t .... at date
the- nit_es
6,080,000
Cit ce:.-t&;.in
238
I
I
-2-
·••
··•
:
Unit
:
of
•
.
:Quantit:r :
as of
June 29. l~
1,200,000
Pound
Quota Fill!
Cotton products, except cotton
wastes, produced in any stage
precedinG the spinning into
12 mos. from
yarn •••••••••••••••••••••••••• Sept. 11, 1962
1,000
Pound
Peanuts, shelled, ur.shelled,
blanched, salted, prepared or
preserved {incl. roasted pea- 12 mos. from
nuts but not peanut butter) ••• August 1, 1962
1,709,000
Pound
Col1J.r.lOdity
Period and Quantity
Imports -
Absolute ;:Uotas:
Butter ~ubstitutes, including
butter oil, containing 45%
or more butterfat •••••••••••••
!I
Imports through July
D-904
8. 1963
Calemar
Year 1963
Quota Filll
238
I
I
I
I
I
I
I
I
I
I
I
I
I
I
TREASURY DEPARTMENT
tvashington
nIl·1ID I A'rZ RELEASE
THURSDAY, JULY 11,1963
D-901
The Bureau of Customs announced today preJ.1mina.r.y figures on imports tor col'l8Uqltion of the following commodities from the beginning of the respective quota periods
through June 29, 1963:
Commodity
•••
.••
Period a.nd Quantity
•• Unit
•• of
:Quantitl
••
••
;
Imports
as of
June 29. 11
Tariff-Rate Quotas:
Cream, fresh or sour •••••••••••••• Calemar Year
1,500,000
Gallon
406,228
Whole Milk, fresh or sour ••••••••• Calendar
3,000,000
Gallon
)
Cattle, 700 Ibs. or mre each
(other than dairy cows) •••••••••
Year
April 1, 1963June 30, 1963
120,000
Hea:i
9,7J.5
12 JJK)S. trom
Cattle less than 200 lbs. each •••• April 1, 1963
200,000
Head
39,)68
Fish, fresh or frozen, £illeted,
etc., cod, haddock, hake, po1lock, cusk, and rosetish •••••••• Calendar Year
24,~4,B71
Pouni
Quota Fillelf
Tuna Fish ••••••••••••••••••••••••• Calendar Year
63,1.30,642
Pound
22,414,914
114,OOO,ooo
Pound
Pouni
58,990,542
36,000,000
Calendar Year
5,000,000
Pouni
J,J67,'Jl7
Stainless steel table flatware
(te.ble knives, table forks,
Nov. 1, 1962table spoons) •••••••••••••••••• Oct. 31, 1963
69,000,000
Pieces
68,479,.~
or Irish potatoes:
Certified seed •••••••••••••••••• 12 mos. from
Other ••••••••••••••••••••••••••• Sept. 15, 1962
~fui.te
\"lalnuts •••••••••••••••••••••••••••
y.
29,~,"'·
-
hlports for conslL'!lption at the quota rate are limited to 12,437,436 pourds duriDB tIi
six I!1Onths of the calemar year.
i'~rst
TREASURY DEPARTMENT
Washington
ATE RELEASE
D-904
JAY, JULY 11,1963
he
Bureau of Customs announced today prel.iminary figures on imports for consump-
r the following conunodities from the beginning of the respective quota periods
l
June 29, 1963:
Commodity
•••
•
••
Period and Quantity
Imports
as of
:Quantity ; June 29. 1963
•• Unit
••
of
••
••
-Rate Quotas:
fresh or sour ••••••••••••••
Calendar Year
1,500,000
Gallon
406,228
filk, fresh or sour •••••••••
Calendar Year
3,000,000
Gallon
3
700 lbs. or more each
April 1, 1963Ir than dairy cows) ••••••••• June 30, 1963
120,000
Head
9,745
less than 200 lbs. each ••••
12 mos. from
April 1, 1963
200,000
Head
39,368
'resh or frozen, filleted,
cod, haddock, hake, polcusk, and rosefish ••••••••
Calendar Year
24, f!f7 4,871
Pound
Quota FillooY
.........................
Calendar Year
63,130,642
Pound
22,414,914
114,000,000
12 mos. i from
36,000,000
••••••••••••••••••••••••••• Sept. 15, 1962
Pound
Pourd
58,990,542
29,900,977
5,000,000
Pourrl
3,367,317
69,000,000
Pieces
68,479,884
~
r Irish potatoes:
fied seed ••••••••••••••••••
•••••••••••••••••••••••••••
Calendar Year
ss steel table flatware
lit lmives, table forks,
lit spoons) ••••••••••••••••••
Nov. 1, 1962Oct. 31, 1963
~rts for consumption at the quota rate are limited to 12,437,436 pourrls during the
lJC
months of the caleooar year.
-2-
Commodity
••
••
,•
: Unit
Period ani QuantitY'
: or
:
:
;Quagtitl ;
~rt;
as ot
June 29
Abfioluto 0J.otas:
Butter substitutes, including
butter oU, containing 45%
Calezdar
or more butterfat ••••••••••••• Year 1963
Cotton products, except cotton
wastes, produced in 8'D1' stage
preceding the spinning into
yarn" ••••••••••••••••••••••••
12 Il108. from
Sept. 11, 1962
Peanuts, shelled, unshelled,
blanched, salted, prepared. or
preserved (incl. roasted pea- 12 Il108. from
nuts but not peanut butter) ... August 1, 1962
D-904
1,200,000
Pound
1,000
Pound
•
l&..;
~ota
Pi
412comB WASfES
·(Ia ponQda)
COTTOR CARD STRIPS II&cle -trom cotkn baving· ... staple ·ot less than 1-"3/16 1Dches 111 length" CO!mEll
WASTE, LAP WASTE. SUVER WASTE, AND ROVING i/ASfE, ,,'REmm OR NOT JWroFACTURED OR OTHZR"iIISE
ADVANCED rd VALUE: Provided, bowev.er, that not more than ·33-1/3 ·percent o~ the quot.a.s shall
be t1lled b7 cOttoD waste. other.than comber wastes made trom· cottons ot 1-3/16 incbes or more
in staple- 1.Il~h in th~ case- ot the- tollowing countries: United ICingdom; France, Netherlands,
S1d.tzerlaad, Bel.g1um, Gel"lllaq, and Ital7a
.
: Establ1shecl
: . TOTAL QUOTA
Coutl7 ot Qricin
t .____
um.ted
IiDFcm • • • • •
75,183
22,747
21,836
33,150
12,8'3
36,070
25,443
-
14,796
17,322
Gel'JD&D7 • • • • • • • ••
ltal7 • • •• • • • • . • •
8,13S
6,'44
76,329
21..263
7,088
',482,'09
Included .:1D total.
75,807
44,)88
·341,'3'
China·, • • • • • • • • •
BI'JPt • • • • • e • • • •
J,/
1,091,408
38,559
69,627
~ • • • • • •
Bel.g1W1l • .• • • • • • • •
J~ • e . . • • • • • • •
~.W.,152
239,690
162,778
49,926
51.982
11,234
68,240
Sw1tzerlaad
••••••
1,,461,383
227,420
• • • • • • •
Cuba • • ••
__
4,323,457
239,690
c.anada • • • • • • • • •
France • • • • • • • • •
British lnd1a .• • • •••
Rether~rmd.a
__
:
Total Imports
: Established:
Import.s
: Sept. 20. 1962. to:
33-1/3% 01: Sept. 20, 1962p
:
_ JJ.u-:v 8.~1.963 __:.. __Tot~_~ot~:_ to. July 8. 1963
~rt..,. colWlll1
2,046,413
1,S99,886
1 .. 188,427
2 •.
.Prepared in the Bureaa o~· Cueto_.
The country designations listed in this press release are those specified in Presidential
Proc~amat.:i..on
have been
No.
235~
ch~ed.
o£ Sept.ember 5.
~939.
Si.nce that date the
JlaIJI.e::i
or
certain countries
II
239
TREASURY DEPARTMENT
Was~ington,
I!-l·!EDIATE
D. C.
RELF..ASE
D-905
THURSDAY, JULY 11, 1963
Preliminary data on imports for consumption of cotton and cotton waste chargeable to the quotas
established by the President's Proclamati~n 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
Co~ntry o~
and the Anglo••••••••
P, YT>t
..,
Oriein
?:~rpti~~ Suda~
.:. .. :01'.1
••••••••••••••••••••
B!'itish India •.•.••..•••
en ina. .........
,~xico
I3ra.zi~
II
............. .
................................ .
................................ .
Union of Soviet
~1ocia1ist Republics •••
Sept~r.tbE!I'
Established
~ota
783,816
247,952
2,003,483
1.,310,191
8,883,259
618,723
ArGentina ........................ .
IIc.i ti ............................. .
475,124
5,203
237
Ecuador ........................... .
9,333
20,
_1962 - Julx _8. 1963
Country of Origin
Imports
Honduras
Paraguay
Colombia
782,857
35,995
81,640
Established Quota
.........................
124
Iraq .................... .
British East Africa •••
8,88),259
Netherlands E. Indies •
618,723
Barbados •....•.•.•.•••
YOther British W. Indies
_
Nigeria ................. .
2/Other British W. Africa
Yother French Africa •••
Algeria and Tunisia •••
1/ Other than Barbados", Bermuda, Jamaica, Trinidad, and Tobago.
"2/ Other than Gold Coast and .Nigeria.
Other than Algeria, '!\misla, and Madagascar.
J/
Cotton 1-1/8'1 or more
Imports August 1,_ 196~_- JJJ.l.v 8. _1963
Established Quota (Global) - 45,656,420 IDs.
atafloe IBngth
1- 3/8" or more
1-5/~"
or more aDd. UDder
~-3/8" (TaDsu:1.)
~-1/8" or more ezId. UDder
Allocation
152
811
!!Pgrts
39,590,176
39,590,778
~1500,OOO
~~.360
1.95
2,240
71,388
21,321
5,377
16, 004
689
Imports
TREASURY DEPARTNENT
Washington, D. C.
I14·!EDIATE RELEASE
D-905
THURSDAY, JULY 11, 1963
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 Septecber20, _1962_- Ju:l:'L8. 1963
Co~ntry o~
Oriein
Established Quota
E.;:;ypt ana the AngloE0JPti~~ Suda~ ••••••••
~ertl
••••••••••••••••••••
British India •••••••••••
Imports
Country of Origin
Established Quota
752
871
Honduras
783 .. 816
247 .. 952
2,003 .. 483
Paragl.lay •••••••• ...... .
782.857
Colombia
35.995
124
•••••
81~640
lr"aq ................... .
_
195
2,240
71,388
. . . . . . . . . ...
~,370,791
••.......•.••••.•.
8 .. 883 .. 259
~
618,723
Union of Soviet
Socialist Republics •••
British East Africa •••
Netherlands E. Indies •
S~8S3.259
618.723
Barbados ••••••••••••••
lIOther British W. Ind1es
475,124
Nigeria •••••••••••••••
2/Other British W. Africa
5,377
16,,004
•••
Algeria and Tunisia •••
689
China ,. .•..•.•••
!-:C}:i co
a
Brazil •.......... ,.. '" ,. .•
'I\.rGentina •••••••••••••••
Ilei ti •................••
Ecuador •••.••..•••••••••
5,,203
237
9,333
1IOther French Africa
1/ Other tha~ Barbados" Bermuda" Jamaica, Trinidad .. and Tobago.
Other than Gold Coast and Nigeria.
Ctr..er than Algeria. Tunisia~ and. Madagascar.
'2/
J/
Cotton ~-~/8" or more
Imports August 1, 1962_~ JulY__8._1963
Established Quota (Global.) - 45,656,420 !bs.
Stap~e
length
1- 3/8" or more .
1-5/32" or more and under
1-3/8" ('l'&J:l~B)
~ocat~on
39,590,778
] _...nn _ont'l..
Imports
39,590,778
........
-,,..
2~,321
Imports
-aCO'1"1QlI 1fAS'lES
-(Ia pol1Do18)
COTTON CARD STRIPS made -trom cot.ton having-.a, staple ·or less t}'l.an 1-")/16 inches in length, CO~
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING ilAS1'E, 'IiHEniER OR NOT 1L\NUFACTURED OR OTHER","lISE
ADVANCED rrl VALUE: Provided, however, .that not more than ·33-1/3 ·percent 01 the quotas shall.
be tilled by cotton wastes other.than comber wastes made trom·cottons ot 1-3/16 inches or more
. in stapl. length in the- ca5e- or the- following countries: United Kingdom; France, Netherlands,
Switzerland, Belgium, Germany, and Italy,
Count17
or
Origin
: Established
: . TOTAL QUOTA
t
United Kingdom. • • • • •
Canada • • • • • • • • •
France • • • • • • • • •
British India • • • • • •
Netner~ands • • • • • ~ •
Switzerland ~ • • • • • •
Belgium. _ • • • • • • •
Japan ••. _ • _ • • • _ •
Ch1.na· _ • • • • • • • • •
Egypt • • • • • • • • • •
Cuba • • • • • • • • • •
Ge~
• _ • • • • • • •
Ita.l7 • • • •
• •••••
4,323,457
239,690
227,420
69,627
68,240
44,)88
Ja,SS9
341,53S
17,)22
8,13S
6,544
76,329
..21J26l_
5,482,509
:
.
Total Imports
:
Established:
Imports
: Sept. 20, 1962, to:
33-1/~ ot: Sept. 20, .1962,
:
July 8,·1963 : Total Quota: to July 8,1963
1,461,38.3
239,690
162,778
49,926
51.. 982
11,234
33,150
~,44l,152
1,091,408
75,807
75,18,3
22,747
14,796
12,853
21,836
-
--
--
36,070
25,443
2,046.. 213
1,S99,886
7.088
1,188,427
lIlncluded.1.n total. imports, -column 2 •
.Prepared in the Bureau ot· Customs. --.
the countr.r designations -listed in this press release are those specified in Presidential
Proc1a!:',ation No. 2351 of September 5, 1939. Since that date the names of certain countries
have been chaneed.
D-905
11
'1 ~
....
TREASURY DEP AR'll-1.ENT
~lashington
D-906
THURSDAY, JULY 11, 1963
The Bureau of CUstoms has announced the following prel.im:i.na.ry figures BboviD
the imports for consumption rrom January 1, 1<J63, to June 29, 196), inclusive or.
cOll1DOdi ties un:ler quotas established pursuant to the Ph1l1ppine Trade A _ t
Revision Act of 1955:
Commodity
••
: Established Annual
• Quota Quantitx
·
••
••
:
Unit
of
cwmtitz
••
••
:
Imports
as of
June
22. 1961
139,9)6
Buttons ••••••••
680,000
Cigars •••••••••
160,000,000
Number
Coconut oU ••••
358,400,000
POUDl
192,721,28)
Corda.ge ••••••••
6,000,000
Poum
2,920,355
Tobacco ••••••••
5,200,000
POUDi
3,910,301
Cross
6,435,:310
TREASURY DEP ARTHENT
Washington
n~~IATE
RELEASE
D-906
THURSDAY, JULY 11, 1963
The Bureau of Customs has announced the following preliminary figures showing
the imports for consumption from January I, 1963, to June 29, 1963. inclusive, of
commodities under quotas established pursuant to the Philippine Trade Agreement
Revision Act of 1955:
Commodity
••
: Established Annual
•
Quota Quantity
·
••
••
••
Unit
of
Quantity
Gross
••
••
••
Imports
as of
June 29. 1963
Buttons ••••••••
680,000
Cigars •••••••••
160,000,000
Number
Coconut oll ••••
358,400,000
Pound
192,721,283
Cordage ••••••••
6,000,000
Pound
2,920,355
Tobacco ••••••••
5,200,000
Pound
3,910,301
139,936
6,435,310
co
(..u
N
TREASURY DEPARTMENT
July 11, 1963
FOR IMMEDIATE REIEASE
WITHHOIDING OF APPRAISEMENT ON
VITAL WHEAT GWTEN
The Treasur,y Department is instructing customs field officers
to withhold a.ppraisement on vital wheat gluten from Australia, pend.
1ng a determination as to whether this merchandise is being Bold in
the United states at less then :fair value.
Notice to this effect i&
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.
Botb dumping price and injury must be
shown to justif,y a finding of dumping under the law.
The dollar value of imports received during
$115,000.
1962
was approximately
The complaint in this case was received on April 19J 1963·
TR'EASURY DEPARTMENT
:
nmrtM'Mft:: ::
July 11) 1963
FQR IMMEDIATE REIEASE
WITHHOlDING OF APPRAISEMENT ON
VITAL WHEAT GWTEN
Tbe Treasur,y Department is instructing customs field officers
to withhold appraisement on vital 'Wheat gluten from Australia, pend1ng a
determination as to wbether this merchandise is being Bold 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 tJnited
States at less than fair value would reqUire reference of the case
to the Tariff Commissioll" which would consider whether American in-
dustry was being injured..
Dot~h
dumping price and injury must be
shown to Justif.y a finding of dtunping under the law.
The dollar value of imports received during 1962 was approximately
$775,000.
The complaint in this case was received on April 19, 1963.
-FOR-' REIEASE ON DELIVERY
TREASURY DEPARTMENT
Washington
STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE BANKING AND CURRENCY COMM[TTEE
OF THE HOUSE OF REPRESENTATIVES
JULY 11, 1963, 10:00 A. M.
Mr. Chairman and members of the Committee:
I am happy to appear before you today in support of
legislation relating to the International Bank for
Reconstruction and Development (IBRD) and the InterAmerican Bank (lOB).
The bills under consideration would authorize me,
as Governor for the United States of the IBRD and of the
IDB, to vote in favor of resolutions before their
respective Boards of Governors to authorize increases in the
capital of the two banks and an increase in the Fund for
Special Operations of the lDB.
The National AdVisory Council
on International MOnetary and Financial Problems, established
by the Congress in the Bretton Woods Agreements Act of
1945,
strongly urges the Congress to act favorably on the requested
authorizations.
The Council has submitted reports relating
to these problems which cover in detail the reasons for the
requested legislation.
D-907
- 2 -
I would first like to discuss the lBRD legislation,
and will then go on to the lOB.
International Bank for Reconstruction and Development
The Committee members are, I am sure, quite familiar
with the work of the International Bank, so that I shall
discuss its operations only very briefly to bring the record
up to date.
The World Bank has made 349 loans in 64 countries
for a total of almost $7 billion in the course of its 17 years
of activity.
On these loans it has disbursed $5.4 billion
and it now has outstanding $4.7 billion in loans to its
member countries and enterprises in these countries.
Over
$2 billion loaned by the lBRD has been repaid to it or sold
to other inves tors.
Its loans have been prudently made and
the payments due have been made regularly, with no defaults
to date.
Its loans have financed the cost of important
projects in the fields of power, transportation, and agricultural and industrial development.
The World Bank finances its activities principally
from borrowings in the financial markets of the world. Privat
investors by buying the World Bank's bonds thus participate
importantly in economic development abroad.
On March 31. 1963
- 3 -
the last published balance sheet, the IBRD had outstanding
$2.5 billion in bonds and notes.
Of this amount, $1.9
billion was payable in U. S. dollars and $600 million in
Deutsche Marks, Swiss francs, sterling, Netherlands guilders,
Italian lire, Canadian dollars and Belgian francs.
Some of
the lBRD's dollar bonds and notes have been sold to investors
abroad and over half of its obligations are held by residents
of other countries.
It is estimated that about $800 million
of the dollar denominated securities of the World Bank are
held by foreigners, in addition to those bonds and notes
which are denominated in foreign currencies.
In addition to its direct lending operations, the
International Bank has provided important services to its
members 'in advising them on their development programs,
sending special missions to assist them in formulating
their projects and advising them on policies and administrative techniques to put these projects on a sound basis.
The World Bank has also had programs in training of personnel
from its less developed member countries in dealing with their
long range economic programs.
I
ment~on
this technical
assistance and advisory function of the IBRD particularly
in connection with the bill before you, since the primary
objective of the legislation is to permit the IERD to admit
- 4 additional members, particularly newly independent countries
which are in great need of its technical advice and
appropriate financial assistance.
The authorized capital of the International Bank is
$21 billion and this capital bas been almost completely
subscribed by the members since the increase 1n capital
authorized in 1959.
The sole purpose of the proposed increase
of $1 billion in the capital of thQ World Bank ia to
pe~mtt
the admission of additional new members and to permit
special increases in the capital subscription of the present
members when this is appropriate.
The United States "ould
not subscribe any portion of this billion dollars in new
capt tal; no authorization or appropriation of funds would
be required.
Since the last annual meeting a number of small
countries have beeD adDdtted to the World Bank's ..Dberabip
and this week five additional countries of Africa became
members.
With the addition of the.e countries. the Bank·,
membership has risen to 90, and its subscribed capital has
now reached $20,790 million.
UDder its present authorization
only $210 million remains available for subscription by new
IIlt·lIIh,,' rs.
'1'hcl-e are eleven cO\lntries whose applications are
Ill.·· ...·ntly lu,lfer conaideration.
1,'.
l h,,· 1I11..·IUbL·'-:ihip
ui th('se
f:
The new capital rE:'quired
leven
count.ri(-~ t!xc~ed:i
~:!~,'I lid J J jllll, \\",ich is m"rl' thelU Uk prcsc..'ntJy i,lwlilablc
- 5 -
authorization, and additional membership applications are expected from other non-member countries.
The Bretton Woods Agreements Act specifies that the
United States Governor for the Bank may not vote for any
increase in its capital without the specific authorization
of the Congress.
It is this authorization which I am now
requesting.
As of this week, sixty-five of the World Bank's member
countries, representing nearly 664 of total voting power,
have voted in favor of the proposed capital increase.
negative votes have been cast.
No
The Bank's Articles of Agree-
ment require favorable action by members having seventy-five
percent of total votes for the increase to become effective.
Since the voting power of the United States is apprOXimately
28% of the total, U.S. action is now all that is required to
make the increase effective.
I strongly urge favorable Congressional action on this
legislation, so that as Governor I can cast my vote in favor
of this action which will facilitate the admission to the
Bank of new members, which are so greatly in need of its
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advice and assistance.
I repeat that this involves no
. i on nor any 1ncrease
.
increase in the United States , subscr1pt
in its present liability to the Bank.
Inter-American Development Bank
I would now like to turn to the proposal to expand the
resources of the Inter-American Development Bank and thereby
provide for the continued operation of that institution as a
major force in the Alliance for Progress.
Since the IDB was established at the close of 1959 and
began operating in the fall of 1960, it has assumed an active
and increasingly vital role in Latin America's economic and
social development.
Although established prior to such major
milestones of Inter-American cooperation as the Act of Bogota,
and the Charter of Punta del Este. the IDB's Charter
anticipated the principles subsequently set forth and now
established as basic elements of the Alliance for Progress.
All of the IDB's activities serve the accomplishment of the
goals of the Alliance and the IDB - as the principal financial
institution of the Inter-American organization - has become
a central and essential operating element of this great
endeavor.
In short, the Inter-American Development Bank has
in a very real sense become "The Bank of the Alliance" __
- 7 ..
breaking the trail and providing leadership in
shoHin~
t!1C: r.··"...,
).
'-
to the economic and social development of this hemisphere.
Structure and U. S. Participation
Let me recall briefly, Mr. Chairman, the structure of the
IDB and the extent of United States participation in this
institution which was established for the purpose of contributing
to "the acceleration of the process of economic development of the
member countries. II
The IDB was initially established with an authorized
ordinary capital amounting to $850 million.
In addition, there
was established within the IDB, a Fund for Special Operations
with resources of approximately $150 million.
The aggre3utc
initial resources of the IDB were thus on the order of $1 billi.on J
and were further supplemented by entrusting to the IDB the
administration for the United States of the Social Progress Trust
Fund with $394 million.
Of the authorized ordinary capital of $850 million, it was
arranged that $400 million would be paid in, and of this latter
Sum the United States subscribed to $150 million. while the
Latin Lmerican members subscribed to $232 million, half of
which was paid in gold or dollars and half in their own
currencies.
(Although Cuba was initially considered a pro-
spective member, Cuba failed to join the IDB and to subscribe
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to its capital, and is now excluded from membership.)
Actual payments to the lOB on these subscriptions were
made in three installments completed in October 1962.
All of the members have met their subscription payments
promptly and in full.
That portion of the ordinary capital not required
to be paid in is known as the "callable capital." The
callable capital was established at $450 million, of
which the United States share is $200 million and other
members is $232 million.
The callable capital represents
a guarantee of the member governments for the IDS's
obligations and thus permits the lOB to raise funds in
the private capital marketse
The IDB has in fact
successfully used this authority by raising funds
totalling approximately $100 million in two separate
bond issues.
A first placement of bonds was arranged
in April 1962 in Italy, for $24.2 million equivalent
in Italian lire, at 5 percent and for a 20-year term.
In December of last year, lOB successfully floated
in this country a public issue consisting of $75
million of 20-year 4-1/4 percent bonds.
- 9 Turning to the resources of the Fund for Special
Operations, the United States ·contributed $100 million
of the initial Fund and the Latin American members
paid in $46 million (half of which, again, was in the
form of gold or dollars and half in their own currencies).
To recapitulate, the extent of United States
participation to date in providing capital to the
Inter-American Development Bank has involved payments
of $250 million ($150 million for ordinary capital
and $100 million for the Fund for Special Operations)
and a callable capital subscription of $200 million
which will not involve any payment except in the
highly unlikely event the IDB should ever be unable
to meet its obligations.
In addition, of course, the
United States has entrusted the administration of the
$394 million Social Progress Trust Fund to the IDB.
- 10 -
Proposed Enlargement of Resources of IDB
The
~greement
establishing the Inter-American Development
Bank contemplated a future need to enlarge the resources of the
lDB and included specific provisions looking toward such an
enlargement.
It was provided that the callable capital could
be increased after all the original subscriptions. had beeD paid
and that the Fund for Special Operations could be increased
when the Governors deemed it advisable.
In the spring of 1962.
it became clear from the tempo of the IDSls operations that
the question of an increase in the lUB's capital should be
placed under active study.
The Governors of the 108 at that
time, meeting in Buenos Aires, instructed the Board of Executive Directors to study the question of enlarging the resource.
of the lDB and to submit such proposals as appeared desirable,
The Directors
sub~tted
their Report on this matter in
March of this year, together with their recommendations.
~
full text of this Report has been made available as an Appendix
in the Special Report of the National Advisory Council subadtUd
to you earlier.
At their annual meeting in Caracas in April of
this year, the Governors of the IDS approved the proposals of
the Executive Directors to enlarge the resources of the IDS
and recommended to each member that it take the nece saary adllilU
tratlve and legal actions to make the proposals effective as
- 11 -
soon as possible.
The proposal now placed before you involves three major
actions:
First, the authorized capital of the lOB would be
increased by $1 billion, entirely in the form of callable
capital available to back-up the IDB's obligations.
Second,
the resources of the Fund for Special Operations would be
increased by $73 million.
Third, the authorized ordinary
capital would be further increased by $300 million to provide
for the possible future admission of new members to the IDB8
The proposed $1 billion increase in the callable capital
would be subscribed by all members in the same proportions as
their present subscriptions bear to the present authorized
ordinary capital of the IDB.
The United States share of the
increase would thus be $411.8 million.
Authority for this
increase is being requested at this time in order to provide the
Bank with assurance regarding its ability to raise additional
funds in the private capital market.
Members are to notify
the Bank on or before December 31, 1963 of their agreement to
the proposed increase and their intention to subscribe to
their proportionate share.
The actual subscriptions, and
appropriations to meet the United States subscription, will
- 12 not be required until a later stage and will be phased in
two installments--one half by the end of December, 1964 and
th~
other half by the end of 1965.
I wish to emphasize that it is highly unlike ly that any
of this increase in our subscription would be paid out as
actual cash expenditure of the Treasury.
The "callable
capital" arrangement is similar to our subscription to the
IBRD, which has worked so successfully during the past 15
years, with no defaults, no inability· of the IBRD to meet
its obligations, and no cash transfers required from the
Treasury.
We do not anticipate that our experience with
the IDB will be any less satisfactory than it has been with
the IBRD.
The proposed increase in the resources of the Fund for
Special Operations represents a 50 percent increase over
existing resources of the Fund.
The United States share of
the increase would be $50 million while the Latin American
members will contribute $23 million.
As was the case with t
original contributions, the Latin American members will make
their contributions to the extent of one half in gold or
dollars and half in their own currencies.
Members are to
- 13 notify the IDB by the end of this year of their consent to
the increase and intention to make the necessary payment
within 90 days.
Accordingly, an appropriation is being
sought for the current fiscal year to enable the United States
to make its payment.
The $300 million additional increase in the authorized
capital of the IDB would not involve subscriptions by the
United States or other existing members of the IDB.
In other
words, no authorization or appropriation of funds by the U. S.
would be required.
Rather this proposal looks toward the
eventual admission of newly independent nations of the
Americas, and possibly Canada, as members of the IDB.
In the
event such additional members are admitted and subscribe to
as much as $220 million, one additional Executive Director
would be elected to represent the members.
At present the
Board of Executive Directors consists of seven members, of
which one represents the United States.
I should add, with respect to the Fund for Special
Operations, that the proposed increase in resources represents
approximately one additional yearls needs for loan operations.
The future of "this Fund and its potential need for additional
- 14 resources will be the subject of special study during the
coming year.
The Directors of the lDB were instructed by
the Governors earlier this year to conduct such a study,
looking especially at the relationship of this Fund, which
was designed to make so-called "soft loans", to the other
activities of the IDB.
It has been the view of some -- and
I tend to share this view -- that with the launching of the
Alliance for Progress, the image of the IDB and its operations
might be strengthened if its three existing loan windows could
be consolidated.
Consideration will therefore be
give~,
together with the Latin American members, to the advisability
in the future of limiting the IDB's operations to the existing
ordinary capital or "hard loan window" and only one "soft
window" which would combine operations now conducted through
the Fund for Special Operations and the Social Progress Trust
Fund -- much along the lines of the IBRD/IDA arrangements.
Such a consolidation would not, of itself, affect the total
amount of funds needed by the lOB for economic and social
development purposes.
Indeed, at least as much -- perhaps
more -- will be needed than in the past for these purposes.
- 15 The Special Report of the National Advisory Council
and the report of the lOB's Executive Directors explain
fully the need for the proposed increase in the resources
of the IDB.
This need stems fundamentally from the tasks
being assigned to the IDB within the context of the expanding
program of inter-American economic cooperation, and Latin
America's requirements for external resources to accomplish
the goals of the Alliance for Progress.
The specific amounts
involved are derived by projecting a modest dollar lending
rate, from the IDB's own resources, of $200 million a year,
of which $150 million would be from ord·inary capital and
$50 million from the Fund for Special Operations.
On this
basis, it is estimated that existing lendable dollar resources
will have been largely exhausted by calendar 1965, with respect
to ordinary capital, and by the end of this year, with respect
to the Special Fund.
The proposed increases will cover
additional loan commitments at the projected rates through
1967 for the ordinary capital, and, as I have noted, for one
additional year (1964) in the Special Fund.
- 16 -
The IDS's Activities
The IDB has a remarkable record of accomplishment during
the short 2-1/2 year span since it opened its doors for loan
operations.
As of the end of June, it had approved from
its own resources 102 loans for an aggregate value of $412
million and 64 loans from the Social Progress Trust Fund for
$348 million.
In excess of $750 million has thus been put to
work to meet the pressing economic and social needs of Latin
America - ... for housing and schools, for water supply and sanitat
facilities, and for the variety of agricultural, industrial.
and public works facilities essential to proper development and
growth.
Of the loans made from its own capital resources, 69 loons
for $295 million 'Were financed out of the IDRI s ordinary capital
resources, drawing upon the paid-in capital subscriptions as
well as the resources derived from the two bond issues last
year w Approximately $52 million of these ordinary capital
loans were made in the Latin American currencies available
to the IDB.
It has made 33 loans for $117 million, including
$16 million in Latin American currencies, from the resources
of the Fund for Special Operations, which are now rapidly
approaching exhaustion.
- 17 Together with the assistance the IDB has provided to
Latin America through the provision of this loan capital, it
has also given help in the building of developmental
institutions and the introduction of administrative and
social reforms so vital to the success of the Alliance for
Progress.
Through effective administration of its loans,
the IDB has been instrumental in the creation or improvement
of many such institutions -- among them development banks,
housing institutes, savings and loan associations, agrarian
credit organizations.
It has also helped significantly in
re-structuring antiquated fiscal, agrarian and administrative
systems.
Of especial interest at this time, I should note the
increasing effort being made by the lDB to mobilize resources
and obtain supplementary credits from European countries for
development projects which it is helping to finance.
I have
already noted that the IDB placed its first bond issue in
Europe.
It has been very active in bringing Latin
Ame~ica's
needs to the attention of the European countries and
their interest in specific project opportunities,
st~ulating
We are
hopeful that the increasing interest in Latin America on the
part of European governments and investors' will help broaden
- 1B -
their participatioll in international development assistance
on suItable terms.
We have in the lOB an admirable multi-
lateral instrument
~ich
can assist -- and is exerting itself
to assist -- in bringing about expanded European
participGtl~
in the Alliance for Progress.
Conclusion
Mr. ChaIrman, the Inter-American Development Bank was
established as the first tangible symbol of inter-American
economic cooperation.
Events moved rapidly after its
establishment, and multilateral economic and social cooperatu.
in this hemisphere culminated in President Kennedy's call in
early 1961 for an "Alliance for l'rogress."
In an unprecedented
move shortly thereafter, the nations of the Ame-ricas cOIIIIlitteci
Chemselves in the Charter of Punta del Este to a sweeping
program of social refonn and a decade of economic growth.
Since then, the Inter-Americllll Development Bank has assUIIl8d
new stature.in the forefront of the Alliance. stimulating,
encouraging, and leading the way tQl.l8.rd achievement of the
Alliance goals.
The realization of the goals of the All1allce is a
fo~idable
task.
The difficulties inevitably encountered
- 19 -
in attempting to bring about fundamental changes in whole
societies are
in~ense.
Certainly, the mere provision of
money from outside sources cannot assure success of the
Alliance.
Fortunately, there is increasing realization
t},roughout Latin America that the extent of their own
efforts will in the long run determine the success or failure
of the Alliance for Progress and will determine whether the
external resources being made available to them can be
successfully utilized o
The Inter-American Bank plays a
significant role in shaping and stimulating the nature of
Latin America's own efforts toward Alliance goals.
Through
their own financial participation, through their presence
in the staff and management, and their decisions in all of
its governing bodies, the lOB is available to the Latin
American countries as their mm instrument, which they
themselves can use and direct in the struggle to cast off
the bonds of poverty and
ignorance~
The record shows that Latin America is making substantial
and effective use of the IDB as a means of accelerating social
and economic progress, and that the lDB is worthy of full and
- 20 -
continued U.S. support.
I therefore urge the approval of
the bill before you to provide for increased participation
by the United States in the Inter-American Development Bank.
Thank you, Mr. Chairman.
TREASURY DEPARTMENT
Washington
FOR RELEASE P. M. NEWSPAPERS
tIONDAY s JULY 15 s 1963
RBvtARKS BY JAMES J. mWLEY
CHIEF, WITED srATES SecREf SERVICE
BeFORE
THE MamERS OF
FORTY-EIGHTH mNUAL CONFERlNCE
OF
THE INTERNATIONAL AsmCIATION FOR IDINTIFICATION
JULY 15, 1963 s AT ROCHESfeR, NSV YORK
11115 A.M.
ma
I am delighted to attend this convention, and honored that you should
have asked me to address you. On an occasion such as this, where the major
law enforcement agencies of the free world are represented. I feel particularly privileged to speak for the United States Secret Service, for I am
proud of its standing and its accomplishments -- and more personally because
the service has given me an opportunity to serve my country for more than a
quarter of a century.
All of us who are a part of law enforcement share that cODU1lOn interest -that is~ to serve our Government at various levels, each of them as important
as the next. Also, law enforcement officers share an unusual bond, q bit
different from that of other public servants, for we are truly interdependent.
Much of the success of the Secret Service, for example, results from cooperation of local law enforcement officers. At the same time I can assure you
that my associates and I in the Secret Service are always willing to furnish
assistance and cooperation on any matter of mutual interest.
I shall detail some of the missions of the Secret Service, but first let
focus on the basic reasons for the kind of professional work in which all
of us here today are engaged. I believe that the fundamental purpose to which
we are all dedicated is thisl the protection of the rights of the individual.
~
Why the individual? The reason is that the strength and nobility of the
free world nations stem from the individual and his rights. Neither a govern~nt nor its laws bestow those rights -- the rights of all human beings are
fundamental and self-evident, and this is one of the great truths upon which
our Nation was founded.
However, these rights find their practical application in the law, which
is, after all, the expression of a code of morals evolved by a human society,
and Which SOCiety expects to be upheld and enforced.
- 2 -
Thus the law enforcement officer carries out the will of the people as
expressed by law. and as law enforcement officers, we share the great responsibility of seeing that our fellow citizens continue to enjoy their rights -that is why I said a moment ago that this 1s the purpose to which all of us
here are dedicatedl the protection of the rights of the individual.
To express that thought in another waYI to us 1s entrusted tho task of
suppressing illegal acts that threaten the rights of individuals. I can
think of no higher calling than that. for in so doing, we safeguard liberty
and assure justice. These are not merely high-sounding words -- they head
the list of rights every American citizen expects. and they are the precious
commodities in which we have the privilege of dealing in our daily work.
HoW well we discharge that duty depends not only upon our own characters,
but upon our professional skill and training. and upon the ideals which sustain our particular organizations.
Abraham Lincoln once so aptly asked, '~Vhat const! tutes the bulwark of
our own liberty and independence?" He then went on to say that 'bur reliance
is in the love of liberty which God has planted in us. Our defense is in
the spirit which proved liberty as the heritage of all men, in all lands
everywhere. Destroy this spirit and you have planted the seeds of despotism
at your own doors. Familiarize yourselves with the chains of bondage and
you prepare your own limbs to wear them. II
The work that you speCialists in identification have done has been attuned
to that objective. The cOIl'\ln')n purpose of your organization in seeking
improvement and development of identification and scientific detection is
precisely aimed at protecting the individual from illegal acts that threaten
his rights.
I know that you recognize the great importance of scientific detection.
particularly when there are no eye witnesses to a crime. Many of you must
have immense sati~faction in knowing that on numerous occasions you alone
have assured conviction of the criminal and have thus contributed greatly to
justice. The extensive and thoughtful program that your 48-year-old
organization has arranged for this meeting will bring forth results for the
benefit of your membership and others as well.
Had it not been for the dedication of all of you, I
tific detection would never have reached the stage it is
equally confident that you will continue to build on the
that you have accumulated for the benefit of all arms of
am sure that scienin now, and I am
store of learning
law enforcement.
Yours has become a highly professional service that demands more and
more scientific kno\'Iledge and training as time goes on. Furthermore. I am
sure that you, as experienced identification speCialists, are helping to
- 3 -
educate and train the younger men who are joining your ranks. The interchange
ot ideas among individual officers and between law enforcement agencies 1s
essential and this concept is deeply embedded in the operations of the Secret
93rvice.
Ma~y of you are familiar with the way the Service operates. Indeed, 1n
many instances you have been in effect, a part of it. But let me swnmarize
some of the background and operations of the Service.
It was almost a century ago --.1865 to be exact -- that the need for an
enforcement agency to protect the integrity of the United States currency
emerged. What was that need? To suppress counterfei tlng.
In 1865 counterfeit bills accounted for about one third of the currency
in circulation. That was a grave situation, for it threatened the validity,
and therefore the value, of the legitimate currency of the Nation. Something
had to be done. The "something" was the organization ot the Un! ted States
Secret Service.
In only a few years, the Service stopped counterfeiters so effectively
that the genuine currency of the Nation was restored to its place as the
legitimate medium of exchange. But today counterfeiters continue their illegal
efforts to defraud the unsuspecting public. And so do check forgers.
The forces for good and evil always "have their reactions. So it is with
printing and the allied sciences and arts. Counterfeiting too has been aided
by advances in photographic reproduction and printing, which means that the
~ople who manufacture bogus money have been helped by technological progress.
If we twist the language a bit, we could say that better bad money is being
made every day. However, at the same time, the Government has not just kept
pace with counterfeiters, but rather we have paced them.
-
-
One way that this has been accomplished is in the process of making the
currency. First, engravers in the Bureau of Engraving and Printing produce
the most precise and finest engraved plates for paper money, notes, bonds
and other Government obligations •. AII of them are done With the most exacting
fidelity to the design, which is a true work of art.
This, then, makes it difficult for a counterfeiter to produce the plates
to print the bogus money, but it is also hard to duplicate the fine printing
that goes into American currency. Printers at the Bureau of Engraving and
Printing are just a"s skilled in their way as are the engravers.
And so our currency is extremely hard to duplicate. The tact that most
~ople
automatically accept a piece of United States currency without question
is proof that nearly 100 per cent of it is genuine.
Nevertheless counterfeiters still think that they can produce a product
that will fool the public. I won't say that some of the makers of phony money
aren't good workmen. They are. But, fortunately, our agents are able to
track them down.
- 4 -
Take the case in Durham, North Carolina, about two weeks ago in which
more than a million dollars in fake twenty dollar Federal Reserve Notes was
seized. Within a few days after the S(Jrvice learned that bogus money had
~en made in Durham, an undercover agent of the Service bought thirty
thousand dollars worth frool a passer. The passer was arrested and seventy
thousand more was found in his car, along with nine hundred thousand dollars
worth in his home. That arrest led to the arrest of two others who had
made the bills and an additional two who had bought notes for distribution
and sale. In all that action the Service enjoyed the full cooperation and
help of the local chief of police, along with the officers 1n his department.
So far, only a few of these bogus notes have been passed on the public.
Another case was the July 3, 1963, seizure in California of over two
million dollars in highly deceptive fifty and twenty dollar counterfeit
notes. Special Agents of the San Francisco office of the Service, working
closely wi th the Chief of Police of Oakland and members at his department,
made the arrest. It was the largest domestic seizure ot bogus bills in the
history of the Service. So far only a limited number of these notes have
been cirr;wated.
Thus, within a period of ten days two major counterfeiting rings, neither
having a connection with the other, were smashed and the loss of nore than
three million dollars to the American public was averted.
The two cases cited are examples of undercover work by skilled agents
aided, of course, by scientific means. They are typical of our day-to-day
o~ration5 In suppressing the counterfeIter before he spreads his wares on
an unsuspecting public. But perhaps more to the point today was the case
of a defendant in Chicago who was found guilty by a Federal Jury on June 29,
1963 and sentenced by the Court to a five-year prison sentence for the
~nufacture of $5 counterfeit notes Which circulated throughout the Midwest
d~in9 1961. In the search of the area under a printing press during the
raid of the printing establishment suspected to be the source of the bogus
bills, a Secret Service special agent found a small scrap of parer which
contained a printed portion of the engraving of Abraham Lincoln from a
countcrfei t $5 bill.
J
I~ore than anything~ that scrap proved to be our clincher in a mainly
Circumstantial case," said Raymond Fit Zvetina, Assistant United States
Attorney prosecuting. the case. "It proved that the counterfeit bills which
were popping up allover Chicago.all came from that press. It proved that
the print shop was the source. 11
How was this proved? It was proved by testimony of an expert witness
through the use of scientific identification by demonstrating to the jury
photographiC blowups of the piece of scrap paper along with blowups of that
sa~ portion of the counterfeit notes which had been passed in Chicago.
With impressive thoroughness the expert compared the similarity of minute
- 5 -
flaws 1n the printing, testimony which was bolstered by scientific proof
that the paper and ink used in the making of the counterfeits were the same
as in the piece of scrap paper.
As a matter of interest, the Secret Service seizes about seven of the
eight counterfeit bills that are made before they get into circulation. In
the fiscal year 1962 the Service confiscated more than four million dollars
in face value of counterfeit money" and about three and one-half million
dollars of that was seized by our agents before it ever reached the public.
The Secret Service has another law enforcement responsibility, which
is to apprehend the forgers of Government checks and bonds, but mainly
checks. Many of these checks are for veterans· benefits and old age
assistance, and in many instances they are the sole means of support for
the payee. The crooks who prey on these people steal checks from mail boxes,
forge endorsements, and then cash the checks, which numbered nearly 44,,000
last year with a total face value of about $4.4 million. Special Agents of
the Service arrested more than 3400 check forgers during the previous fiscal
year.
The heavy volume of forged Government che cks has made it imperative that
the Service accelerate its system of identification of the multiple forger
who operates from city to city, and state to state. To meet this challenge
the Forgery Section in our Headquarters has developed a system of handwriting
classification which can identify the work of the same forger regardless of
where he may be operating. This system has been of considerable aid to our
field offices. We hope that further development will enable us to keep on
a current status with the multiple forger and thus anticipate his next area
of operation instead of spending considerable time and money in backtracking
his operation.
I have spent this time talking about counterfeiting and the ways in
Which the Secret Service is meeting its responsibility in this regard, but
I want to emphasize that the first and most important mission of the Service
is to protect the President, his family and the Vice President. Many of
yoo may wonder why the Secret Service is charged With this responsibility.
The reason for this may lie in the fact that, for a great many years" the
Secret Service was the only general law enforcement agency of the Government. So, when three Presidents, Lincoln, Garfield and McKinley had been
assassinated within the short space of 37 years, Congress decided in 1901
that the Chief EXecutive should be protected. The Secret Service was given
the responsibility, and proudly carries it out today.
It is a formidable responsibility, but one that all agents of the Secret
Service accept with a sense of deep satisfaction. Members of the White
House Detail, a small compact organization, are always with the President,
and they are supplemented on trips of the President by agents of the Service DS
field offices.
- 6 -
I have given you only a short sketch of the two major tasks of the Secret
S9rvice. We believe our activities have contributed most pointedly in carrying
out the overall responsibility of the law enforcement officer -- that is, the
suppression of illegal acts by individualS which threaten the rights of other
individuals, and thus endanger the rights of our SOCiety as a Whole.
I stress our common cause, because these are timBs that demand the best
in all of us -- times that call for the kind of cooperation that springs from
man who understand and appreciate the moral foundations upon which their work
Is based. Some call this a spirit of dedication.
No one knows the value of such a spirit better than does the law enforcement officer. He needs it now, and will continue to need it in the years to
mma. It is the kind of spirit that can invigorate your work -- Which. though
often tedious and sometimes gruelling. is vital in today1s world of scientific
aima detection and identification.
I am sure that the good citizens of all our countries Wish you every
wccess in your endeavors. To those of you visiting our shores for the first
tlme, I extend a most cordial welcomeJ to those with wbom we have worked
~tore, may I say that we look forward to continued cooperation on matters of
mutual interest to the Secret Service and to the highly respected law
enforcement organizations you represent.
- 4 "However, these rights find their practical application
in the law, which is, after all, the expression of a code
of morals evolved by a human society, and which society expects
to be upheld and enforced.
"Thus the law enforcement officer carries out the will of
the people as expressed by law, and as law enforcement officers
we share the great responsibility of seeing that our fellow
citizens continue to enjoy their rights -- that is why I said
a moment ago that this is the purpose to which all of us here
are dedicated:
the protection of the rights of the individual.
"To express that thought in another way:
to us is entrustE
the task of suppressing illegal acts that threaten the rights
of individuals.
I can think of no higher calling than that,
for in so doing, we safeguard liberty and assure justice."
000
- 3 -
While old counterfeiters )fade away in prison, new ones try
heir luck.
Two weeks ago in Durham, North Carolina, the
ecret Service seized more than a million dollars in fake twent:
ollar Federal Reserve Notes.
On July 3, they confiscated two
illion dollars in counterfeit fifty and twenty dollar notes in
akland, California.
The latter was the largest domestic seizu:
f bogus bills in the history of the Secret Service.
Chief Rowley told his audience that the fundamental
urpose to which law enforcement officers are dedicated is the
rotection of the rights of the individual.
"Why the individual?
The reason is that the strength and
ability of the free world nations stem from the individual and
is rights.
Neither a government nor its laws bestow those
ights -- the rights of all human beings are fundamental and
elf-evident, and this is one of the great
~r
Nation was founded.
truths upon which
- 2 Mr. Rowley said that "the Government has not just kept
pace with counterfeiters, but rather
~
have paced them.
Our currency is extremely hard to duplicate.
The fact that
most people automatically accept a piece of United States
currency without question is proof that nearly 100 per cent of
it is genuine."
Such was not the case a hundred years ago.
Counterfeit
bills then accounted for about one-third of the currency in
circulation.
The value of the country's legitimate currency
was so jeopardized that the Congress created the Secret Service
for the express purpose of suppressing the counterfeiters, which
it succeeded in doing within a few years.
7/11/63
DRAFT
FOR RELEASE:
A.M. NEWSPAPERS
MONDAY, JULY 15, 1963
Professional and amateur thieves stole 44,000 GoverruMmt
checks worth $4.4 million last ,hsca1 year.
Printers and
engravers turned out more than $4 million worth of counterfeit currency in the same period.
,'\
More than 3,400 forgers
~weveE,~~~~~-p~~
..
-e~~!I~..~~~~
__~....~._~_.~. _~..aa~~...
.....
--~~.,..
,---
..•.-.......
..
'~... e~r-:e
:. r.
7
.
arrested by the
:
one=Aa1:.i'IIIi.H.l:b).\,,-'=QU.6iqlE·~~laartJ:··trt' ···~hC!~·lkRJfI' ''ttlall' four
.... ; .
,., ... ····.1
~.,
I"'?I(
,,-, ..•..
,&'..,
miJiIoioQ ,~~.'6 pIP . . . . . . . . .~"the,puW.W:
-1
These figures were revealed by James J. Rowley, Chief
of the United States Secret Service, in his address this
~.
ing before a meeting of The International Association for
Identification, Rochester, New York.
_
"'-,f
-
.'~
t
·-·:~r)"'
...
-' - .
~.:- 1 ,
.,.-~
'
..
of.-
o·,!-~
'.
i·1
...
"",,'
'1"
-·.r
r.· ..
.... _ oj "_"
j
.. ......'1"~
t":f~·
.. _.I. ~ l.
...... "
-
:'·1".'.lJ.
{"'.'
~
~V.'l1.,.,,·:~ of thr ..'ssociatiOD
These figures were revealed by James J. Rowley, Chief
of the United States Secret Service, in his address this
morning before a meeting of The International Association for
Identification, Rochester, New York. Members of the Association
include professional experts in scientific crime detection,
identification, and investigation.
Mr. Rowley said that "the Government has not just kept pace
with counterfeiters, but rather ~ have paced them. Our currency
is extremely hard to duplicate. The fact that most people
automatically accept a piece of United States currency without
question is proof that nearly 100 per cent of it is genuine."
Such was not the case of a hundred years ago. Counterfeit
bills then accounted for about one-third of the currency in
circulation. The value of the country's legitimate currency was
so jeopardized that the Congress created the Secret Service for
the express purpose of suppressing the counterfeiters, \'I1hich it
succeeded in doing wi thin a few years.
While old counterfeiters are serving terms in prison, new
ooes try their luck. Two weeks ago in Durham, North Carolina,
th~ Secret Service seized more than a million dollars in fake
twenty dollar Federal Reserve Notes. On July 3, they confiscCltc:d
two million dollars in counterfeit fifty and twenty dollar notl's
in Oakland, California. The latter was the largest domestic
seizure of bogus bills in the history of the Secret Service.
D-908
- 2 -
Chief Rowley told his audience that the fundamental purpose
to which law enforcement officers are dedicated is the protection
of the rights of the individual.
"Why the individual?
The reason is that the strength and
nobility of the free world nations stem from the individual and
his rights. Neither a government nor its laws bestow those
rights -- the rights of all human beings are fundamental and
self-evident, and this is one of the great truths upon which our
Nation was founded.
"However, these rights find their practical application in
the law, which is, after all J the expression of a code of morals
evolved by a human society, and which society expects to be
upheld and enforced.
"Thus the law enforcement officer carries out the will of
the people as expressed by law, and as law enforcement officers,
we share the great responsibility of seeing that our fellow
citizens continue to enj oy their rights -- that is why I said
a moment ago that this is the purpose to which all of us here
are dedicated: the protection of the rights of the individual.
liTo express that thought in another
way:
to us is entrusted
the task of suppressing illegal acts that threaten the rights of
individuals. I can think of no higher calling than that, for in
so doing, we safeguard liberty and assur~ justice. 1I
000
- 2 Secretary Dillon has expressed his gratification at this
further evidence of the close financial cooperation between
our two countries.
No. 203
The following is the text of a press release issued in
Paris today by the French Ministry of Finance and Economic
Affairs:
" Mr. Valery Giscard d'Estaing, Minister of Finance
and Economic Affairs)received Mr. Robert V. Roosa, Under
Secretary of the U.S. Treasury, this afternoon.
"The Minis ter informed Mr. Roosa of the decision of
the French Government to make a new prepayment during the
coming week,on the external debt of France to the United
States.
"This prepayment will amount to approximately $160
l\ \
~illion
and will include in particular the balance remainiol
"" .. d--'-
due on the second loan P-'d to France by the Export-Import
M
Bank 1n1946, that is, $106.6 hil1ion.
"In addition, the Bank of France in the near future
will repurchase from the International Bank for
Reconst~t
and Development the final installments stilldue the
insti~
on the loan granted to the Credit Nationall on May 9, 1947,
h)
that is, a sum of $59.1 ;illion.
"The full amount of theloan granted the French
by
the IBRD will thus have been repurchased.
tiThe total of these operations amounts to $220 billiol
TREASURY DEPARTMENT
&
IMMEDIATE RELEASE
FRANCE TO PREPAY $160 MILLION ON
DEBT TO UNITED STATES
The following is the text of a press release issued in
Paris today by the French Ministry of Finance and Economic
Affairs:
"Mr. Valery Giscard d'Estaing, Minister of
Finance and Economic Affairs, received Mr. Robert
V. Roosa, Under Secretary of the U.S. Treasury,
this afternoon.
liThe Minister informed Mr. Roosa of the decision
of the French Government to make a new prepayment
during the coming week on the external debt of France
to the United States.
"This prepayment will amount to approximately
$160 million and will include in particular the
balance remaining due on the second loan made to
France by the Export-Import Bank in 1946, that is',
$106.6 million.
"rn addition, the Bank of France in the near
future will repurchase from the International Bank
for Reconstruction and Development the final
installments still due the institution on the loan
granted to the Credit National on May 9, 1947, that
is, a sum of $59.1 million.
"The full amount of the loan granted the French
by the lBRD will thus have been repurchased.
"The total of these operations amounts to $220
mil1ion."
Secretary Dillon expressed his gratification at this further
eVidence of the close financial cooperation between France and \
the United States.
D-909
000
..(... .. J
.l..~'~
,:':
diS!\SlIJU'~
..!:,~u.! 811J. (j'f"El18l
'! he l .....urJ ~pa.I"tIMnt iU1DOUDOed lut. ...111_ Ulat U. te. .n t .. two nr1Ie ..
't,..•• uq bUla, ODe _riGs to .~ aft &1d1t.10Ml i ••• of t.be Wla da\eel .~pril 18, 1J6J
aDJ to. otiwr aerie. to iA dat-ed July 18, 196.3, wblab ..... ott..... OD M.'/ 10, . . .
opeae\1 ~ t. t.oe l.'eder&l <ie.~". aanD OIl Jvl.1 15. teDde... wen 1Ir'rl\ed
or t.hel"lhl 00V1.., of i l-:.LaJ tdlla a D4 for t800 ,000, 000, or u..-Do1lM. et It\2..aa, MIll
'OJ' .1,)00,....
fne detau. or t.he t.vo aerie. are a8 follcnris,
ACi:~
rtulJi OF
91-dn¥
(i'I!7.U
Ir.~.ur7
billa
.. tur~ :crt.ober ,11 &- ,1963
-'porox. Kq111••
ADDual ate
Moe•
99.20)
3.153'
CQ'H>:~'rT h'1l, 91J~) I
J9.16)
3.232-'
9;1.19)
J.l92(
!I
f
··
Prl_
r
•
t._
55 percent of toM amount. of Jl-daj bill. bid tor at
1ft prloe . . . . .ecept.e<i
)j s-rcent of thlt ii.JJIOunt 01 lB2-c1a), bUl. bid to~ .t tbe low prl.. ... ..cept.ed
}H):~il~
T·1I .U. 1
APPU"D
Diai.rict.
fonoD
Itcw 'Cork
t:J~U .. delphla
?'}i(
AND ACe iT?D 31
'~2El:1ec.1
?
,'or
$0,764,000
l,452,lbO,OOO
ru.abaood
.\tJ.aat.a
)2,4J4,00J
J9,dU,OOO
16,241,000
27,854,000
Ch1cqo
211,2oS,OOO
riDl1ULU'::J;\,:~
.~C08Pted
i
,
ARP11ec1 lor
Aceepyt4.
40,664,000
I
I
J;
141.S90,OOO
I
SO,781,000
17,49il,OOO t
)9,811,000:
lU,241,OOO I
25,854,000 I
161,285,000 I
1&6,181,000 t
K1DDeapOlia
2),Sn,OOO
2),S'n,OOO.
h!IMa Olio,.
bci,998,OOO
J6,4Q7,OOO
Cle'NlaDd
st..
1,Q1,U.
ua.u..
San -raDc1lioo
102,168,000
DISTIICfJ.
9,~7,OOO
"W.',CIOO
),655,000
1,ns,OOO
lll,SOl,OOO
',)71,000
7,IalO.ooo
~,l98,ooo.
)6,441,000
100,160,000
10,616,000
985,)S),ooo
18,J61,ooo
U,OlI,OOO
16,"7,000
I
I
lO,6l6,..
512,01'",
£a,Uf.--J
1,W.',..
),'_•
7,m,..
S9, • . -
8,811.T,1110,.
18,_:;
11,011
86,mlll
1l,272,9Jl.),OOO t6OO,1kJ~
!!/ Includes ~121,OU5,ooo DODODIIpet.l\lYe tend4tn aeoep'ed at ,_ ...ra6. pnce ., ...
b/ l!'.clu~•• J6!i ,076 ,000 DOn~t.lt.l.e t.eDdera 4ooepMc1 at. tobe a.....p prloe of . . .
~. .JA a ooupon usue of to;. . _ l.ns\h .ad for t.be . . . ...-t ~.ted, t......, .
U ••• billa vo\1ld proTide y.l.elda 01 3.26t, for 10M '1-cla1' bill., .aDd ).~" I.
ld2-cU1 billA. IDt.ereat rat •• oa bUU .... quot.ecl 1. ~ of
db'-.
rwt.urn nlat.d t.o ,be Ca. aJlO1IDt. ot tbe bUle pa".t.le .t. _t..n.t.t ra\bll' .... t
a.)uot. in'l••t.d. aDd t.heir leetb lD aot.Ml. _bel' of - , . rela\ed t.o • )60" J
In cont,.... t, l1eld.a on ..rt.1tieat•• , note., ud bQDd• • N ~d 1a ~"
1nt.,~st OIl U.. amo1lDt iDYM....d, aud relate tbe •
of
~.la1111la.
1n~r.8t paywwaat, pttriod to tile actual -.-bar of <1qa Us tobe period, l4'b . . . .
OOIlpOUDcUag if acre t.ban OM oo~ period 1. lDwlvM.
TC'iALS
.2,098,7$U,OOV
11,)OO.101.&,OOO!l
_nil
..-r d.,.
.-
TREASURY DEPARTMENT
:
=
~
RELEASE A. M. NE\tJSPAPEilS,
-
lsdab July 16, 1963.
RESULTS 0Ii' TREASURY'S WEEKLY BILL OFFERING
The Treasury Department mnounced last evening that the tenders for two series ot
&Burr bills, one series to be an additional issue ot the bUls dated April 18, 1963,
the other series to be dated July 18, 1963, which were offered on July 10, were
aed at the Federal Reserve Banks an July 15. Tenders were invited tor $1,.300,000,000,
thereabouts, of 91-day billa and for ;$800,000,000, or thereabouts, of 182-day bUls.
det&Us ot the two series are as followsl
lE OF AOCEPTED
.P!lI1'IVE BIDSa
High
Loll
J.verage
91 ...d3.Y Treasury bills
-2!.at~~ .octo~er ..!ZJ_196~ M_!
Prics
99.20)
99.183
Approx. Equiv.
Annual Rate
3.153%
:
:
:
99.193
3.192% ! I :
98.304
3.3,5% Y
lpercent ot the amount of 91-day bU1s bid for at the low price was accepted
~rcent
3.232%
182-day Treasury bills
maturing Janua!"l16, 1964
Approx. !quiv.
Price
Annual Rate
96.)16
3.327%
98.288
3•.366%
of the amount of 182-day bills bid for at the low price was accepted
lL fENDERS !PPLIED FOR AND ACCEPl'ED BY FEDERAL RESERVE DISTRICTS:
lstrict
Applied For
AcceEted
: ApI¥=ied For
:paton
$
50,764,000 $ 40,664,000 , $ 10,616,000
:. York
lI11adelphia
lnel.and.
~Dd
ilaDta
~o
1,452,340,000
32,494,000
39,811,000
16J241~OOO
21,85h,oOO
'.DDeapolis
City
219,285,000
50,781,000
23,571,,000
46)998,000
fFrauoisco
102>168.1000
f. IDuis
jIDsaa
~
,Ta.rALS
36J447~OOO
747,590,000 I
17,494,000 I
.39,811,000:
14,241,000 I
25,854,000:
161,285,000:
46,781,000:
2.3,571,000:
46)198,000:
36,447,000:
_+oq,168,OQq:
985,353,000
9,437,000
9,449,000
),655,000
7,77,,000
113,501,000
9,377,000
7,b:. '),000
18,36 ,000
11,012,000
66,997,000
Accepted
$ 10,616,000
572,053,000
4,437,000
9,449,000
3,655,000
7,775,000
59,,01,000
8,877,000
1,W.O,OOO
18,361,000
11,012,000
86,997,OOQ
BI
$2,098,754,000 $1,300~104,000!l $1,272,943,000 $800,143,000
l1c1.udea 8321,04,,000 noncompettt.ive tenders accepted at the average price of 99.193
~ude8 $66,076,000 noncompetitive tenders accepted at the average price of 98.304
~ a coupon issue of the same length eLnd for the same amount inve~ted.J the return on
these bUls would provide yields of 3.26%, for the 91-day bills, and 3.46%, tor the
182-da.y bUls. Interest rates on bills are quoted in terms of banlc discount with the
return related to the face amount of the bills payable at maturity rather than the
~ 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 amolult invested l and relate the number of days remaining in an
1nterest payment period to t,he actual nLDllber of days in the period, with semiannual
COIllpOUDding if more ikJan one coupon period is involved •
•q1n
2
in the neighborhood of $1 billion.
It is contemplated that
the monthly one-year bill series might be dated to mature
on the last day of each month.
Before proceeding further in its consideration of a
monthly auction of one-year bills, the Treasury requests
comments from members of the financial community and other
interested parties concerning the desirability, the feasibility
and the technical market aspects of such a program.
Comments should be submitted within the next thirty days,
addressed to:
Mr. Frank E. Morris
Assistant to the Secretary
(Debt Management)
Room 3321
Main Treasury
Washington 25, D. C.
FOR RELEASE 4:00 p.m., Monday, July 15, 1963
TREASURY CONSIDERS MONTHLY AUCTIONS OF ONE-YEAR BILLS
The Treasury Department announced today that it is
giving consideration to the establishment of monthly auctions
of one-year Treasury bills in the interest of a more orderly
scheduling of its short-term debt maturities.
Under such a program, if adopted, the outstanding
quarterly series of one-year bills, (which mature on January]
April 15, July 15, and October 15) would gradually be retired
as they were replaced by monthly issues.
The amount of one-year bills to be auctioned monthly
would, of course, be substantially smaller than the amounts
currently auctioned on a quarterly basis.
The monthly
auctions, although they might be varied in size to meet both
market conditions and Treasury cash needs, would probably be
TREASURY DEPARTMENT
=
FOR IMMEDIATE RELEASE
TREASURY CONSIDERS MONTHLY
AUCTIONS OF ONE-YEAR BILLS
The Treasury Department announced today that it is giving
consideration to the establishment of monthly auctions of oneyear Treasury bills in the interest of a more orderly scheduling
of its short-term debt maturities.
Under such a program, if adopted, the outstanding quarterly
series of one-year bills, (which mature on January 15, April 15,
July 15, and October 15) would gradually be retired as they were
replaced by monthly issues.
The amount of one-year bills to be auctioned monthly would,
of course, be substantially smaller than the amounts currently
auctioned on a quarterly basis. The monthly auctions, although
they might be varied in size to meet both market conditions and
Treasury cash needs, would probably be in the neighborhood of
$1 billion. It is contemplated that the monthly one-year bill
series might be dated to· mature on the last day of each month.
Before proceeding further in its consideration of a monthly
auction of one-year bills, the Treasury requests comments from
members of the financial community and other interested parties
concerning the desirability, the feasibility and the technical
market aspects of such a program.
Comments should be submitted within the next thirty days,
addressed to:
Mr. Frank E. Morris
Assistant to the Secretary
(Debt Management)
Room 3321
Main Treasury
Washington 25, D. C.
000
D-911
STATUTORY DEBT LlMITATmH
1 963
•
.a.hi8,108, July15. 196) _
Seceion 21 of Second Liberty Bond Act. as amended. provide. that the face amount of obUaations i ....ed ..Ilele. allth t
that Act, and the face amount of oblialtions auaraaleed •• to principal ud interest by the UaiteCiStates (ueept suc. ,.:~~ I
obligations as may be held by the Secretary of the Treasury). "Shall not exceed in the a8Fe,ate '285.000 000 000 (A •
June 30, 1959; U. S. C.• tid·e 31, sec. n7b), out.landina at aa,. one time. For purpo.es of th.s .ection clae cueDc' ' .... l
'Value of any obligation issued on a discount basis which is redeemable prior to mlNdty .t the option of cia. lao1cler ....11 be C
sidered as lUI face amoulu." The Act of May 29, 1963 (P. L. 88·30 88th COIl,re •• ) proyidu diat the abO\'e llmitatiOil .laalT':
temporarily iacreased (1) durial the period be,illninl May 29. 1963, and enain, OIl June 30,196~ to '307,000,000 000. (2) '-Ir
the period beainnin8 on July I, 1963,aad eadiaa em AllJUst 31,1963 to '309,000,000,000.'
"
As of
Jupe ,0
d
. Tb~ f~ll~wi!la table shows tbe face amount of obU,arioas outstandia, a~d the face lUIIOuat which Cia .dU be i"1I1t
under thIS hmltataon:
Total face. amount that may be outstandin& at Iny one time
$301 000 000
Outst.adan. •
,
•
•
Oblilations issued under Second Liberty Bond Act, 18 amended
Interest-bearing:
.
Treasury bills
$47,229,867.000
Certificates of indebtedaess
22,169,068,000
Treasury notes _ _ _ _ _ _ _ __
52.145.030,000
$121.543,965,000
81,963,865.350
48.313. '709.695
J.85.350
]03,114.500
"6,61'2,000
'3 921 020 onn
)'34.328.506,895
Bonds Treasury
• Savials (Curreftt redemptioft ".Jue) _
Uiliteel States Retirement Plan boods
Depositary
R. E. A. series
Investment series
Certificates of Indebtedness Foreilll series _ _ _ _ _ _ _ __
Foreila Currency .eries _ _ _ __
Treasury notesPoreilD series - - - - - - - - Treasury boftdsForeiln cjlency series '
l"eecaaSllrV'a
al--fl2ln ~:rt.iflcates ------
~
,
_,
~
•
'J\.'
465,000,000
25,456,750
183,000,000
604,401.081
'"r., 500 •000
6,184,942,975
4,808,423,000
33.807.535.000
Certificates of indebtedness____
Treasury notes - - - - - - - Treasury boads _ _ _ _ _ _ _
Total interest-bearilll _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Matured, interest-ceased _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Bearing no interest:
United States Savillis StllJllPS _ _ __
53.679.798
. Excess profits tlU refund boods _ __
695.969
Special notes of the United Statel :
Interaac'l Monetary Fund series _ __
2,922,ono,000
Interaat'l Develop. Asa'n. series _ __
128,956.600
(nter-American Develop. Bank seriel __
125.000,000
Total _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____
1,277.857,8J1
2 • .500,000
44,800.900.975
301,953,730,701
307,826,600
3,230,)321~
305.491,889,
Guaranteed obU.acioos (not held by Treasury):
IDterest-bearinl:
Debentures: F. H. A. " DC SCad. Bds._
60.5,489,600
Matured, interest-ceased _ _ _ _ __
1,120.775
606,610.375
Graad total ouCltandinl _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Balance face amount of obli8ati01l8 issuable UDder abo .. authority
Recoacilemeat with Statemeat of the public Debe
(Daily Statement of the United States Treasury,
~J~u:!.!n~e:::....3~O....-=1~9..::6:..1'----
(Date)
_..:J:!,;u:::.n~e:....:::2:::8:.1.~1~9'-.;6:;:.'3,,-----)
(Dete)
OutstandiD, •
Total gross public debt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Guar.nteed obliaations Dot OWDed by the Treasury - - - - - - - - - - - - - Total gross public debt and ,uarlDteeel obli,atioas
•. .
Deduct - other olltstandiD, public debt obU,atioas Dot subject to debt lamitaCl0D - - - - -
D-912
STATUTORY I>EUT LIMIT A'I'JON
Section 21 of Second Liberty Bond Act, &1 ameodcd, provides thar tbe face aRloubt of obli.arioas iu..ed ..fide, aUlbUl",. of
mal Act alld the fllce amount of obli,ationll lua'dou:ed 81 to priDcipal and inJun, by tbe UohedSEacei (e.upE .ucla ,uardMud
obJi.ati;"s as may be held by tbe Secretary 01 tbe TreasuIY), "Shall 110C elceed ia che .8~e'lte 128'.000 000,000 (Ac! of
JIlDe ~O 1959; U. S. C., tide 31, sec. n7b), outatllodin, It any olle riRIe. For pllrpoaea of chi. leelio,. the cOf~enl redemption
,.1•• of' anT oblig.uion iUlied 01\ • discount basla which is redeemable pdor to matllricy at the optioG of tbe holder ah.lI be con·
Jidrred as Itl face amount." The Act ~f May .29,. 1963 (P. L. 88-30 88th ~on,r'8I) provide. tllal dae above liDlhatioD IhaU. loc
IrlllpOllfily incru~ed (1) durin, the peraod bellDnln, May 29, 196" and endlD, on June 30.1963 Co 1}07,000,OOO,OOO, (1) dU'Ul,
the period begillnins on J Illy 1, 196~. And endina 01\ AUSllat 31,1963 to 1l09,OOO,OOO,ooO.
The rol1()\~in8 uble sbows tbe face amount of obli,ariol\9 ouesrandin, "nd the face
lIIICIer this limitation:
Tocal face amount tbat may be outatandin, at anyone time
lUIIouat
•
OUCSIIR dIR8-
Obligations issued under Second Liberty Bond Act, a ..... ended
lnterest~hearlng :
Treasury bilh
Certificates of indebtedriese
Treuury
Bonds.
IIOtu
.
$47.229.867,000
22.169,068.000
52.145.030,000
Treasury
• Saving. (Current redemption .. Iue) _
United Statea Retirement Plan bond.
81,963.86;,350
48,313.709,695
l85.350
]03.114,500
26,612,000
3,92.1,020,01')0
Depositary
R.E.A. geries
Investment series
certificates of Indebtedness •
Foteign series _ _ _ _ _ _ _ __
Foreign Cwrency .eriu _ _ _ __
465.000.000
2.5.4.56.750
TreBlury notes -
J.8;,000,000
ForeigG series - - - - - - - - Treasury bondsForeis" Currency aerin -:--____
604,401,081
tt~~~Pf,(n~~rtificates ---... --
Certificates of indebtednus - - - Treasuty ootel________
Treasury bonds _ _ _ _ _ _ _
$121,543,965,000
::!,500.000
6.184,942,975
4,803,423.000
;,.807.515.000
Total interest-beatins _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Matllred, interest-ceased _ _ _ _ _ _ _ _ _ _ _ _ _ __
Bearin, no interest:
United States Saving. Stampl _ _ __
Eltcess profits tax refund bonds _ __
l,277.8S7,8)1
2,;00,000
44,800.900.975
301,953.730,701
307i826,600
53.679,798
695.969
Special notes of the United Sta'e. :
fnternat'l Monetary Fund seriee _ __
2,922,01"0,000
J.28,956.600
121.000,000
TOlll _____________________________.__________
fntettlat'l Develop. Ass'n. series _
Inter-American Develop. Bank aeliel __
Gvatanteed obligations (not held by Trea8uty);
Iate,est-bearing ;
Debentures: F. H. A. " DC Stad. ada. __
NatuRci, interest-ceased _______
605,~39.600
1,120,275
Gland total olltstanding _________
606,610,375
Balance face amount of obU,ation8 luu.ble under above authority
Recondh:meot with Statement of the public Debe
~J~lIl..\.n~.~::...·_'~}O~.~1...9L:.6~3J_ ___
(Dat.)
(Daily Statement of the United States Treuucy, _...;I.;.:Ju:::n:.:.A;!;.I_,.::::.2::::.B..a.I......:.::l.L9..::6~'3'___ __
Out,tandio, _
(Del.)
'l'otal ,to.B public debt _ . _ _.___... __...__ ............. ____ .__________________
Gllatloreed obli8dtionIJ not owned by the Tle""u.ry ..______._.._. _ _ _ _ _ __
total &r088 public debt and 8UlltllUCec-d oblis&t,ioCIII _._". __.. ___.__ .....
AOI lIubject (0 debt limitatioD
Deduct. otber outlltlmllins public debe obli._dollS
which caD
Itill
be llilled
$~O? 000 000 000
~.
,
•
TREASURY DEPARTMENT
July 16, 1963
FOR
ll-jll.IEDIA~
RElEASE
TREASURY DECISION ON TITANIUM DIOXIDE
UNDER THE MITIllJMPING ACT
The Treasury Department has determined that titanium
dioxide from Finland is not being, nor likely to be, sold
in the United states at less than fair value within the
meanin6 of the Antidumping Act.
Not ice
or
the determination
will be published in the Federal Register.
The dollar value
ot imports of the involved merchaDdise
received .from Finland during 1962 vas approx1mate.ly $1,500,000.
000
TREASURY DEPARTMENT
=
July 16, 1963
FOR INNEDIATE Hl:IEASE
'l'lU:ASURY DECISION ON 'l'ITANIUM DIOXIDE
UNDER 'l'UE AN'l'IOOMPING ACT
The Treasury
Departm~nt
has determined that titanium
dioxide from Finland 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 detel~natlon
will be published in the !<'ederal Register.
'l'he dollar value of imports of the involved merchandise
received from rLnland during 1962 was approximately $1,500 ,000.
000
TREASURY DEPARTMENT
July 16, 1963
FOR D41·1EDIATE REIEASE
WITHHOLDING OF APPRAISEMENT ON
STEEL REDmmCING BARS
The Treasury Department is instructing customs 1'1eld officers
to withhold appraisement on steel rein;torcing bars from Canada,
pend1D8 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 pubUshed in the Federal Register.
Under the AntidumpiDg Act, determination of sales in the United
States at less than tair value would require reference ot the case
to the Tariff COmmission, which would consider vhether American
industry was being inJured.
Both dumping price and inJury must be
shown to justify a finding of dumping UIlder the law.
The complaint in this case was received
OIl
JanU8.l",Y 25,
1963,
and was filed by tlle Oregon Steel Mills.
The dollar value of' imports received dur1na
imately $830,000.
000
1962
was approx-
TREASURY DEPARTMENT
•-July 16, 1963
WITHHOLDING OF .APPRAISEMENT ON
STEEL REINFORCING BARS
'!'he Treasur,y Department 1s instructing customs field officers
to withhold appraIsement on steel re1nforciDg bars frail Canada,
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 ot 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 vas being inJured.
Both dumping price and injury must be
shown to justify a riDding of dumping under the law.
The complaint in. this case was received on January
25, 1963,
and was tiled by the Oregon steel Mills.
The dollar value of imports received during 1902 was approximately $830,000.
000
253
- 3 -
and exchange tenders will receive equal treatment.
Cash adjustments will 'be made
for differences between the par value of maturing bills accepted in exchanse and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sa
or other disposition of the bills, does not have any exemption, as such, and losl
from the sale or other disposition of Treasury bills does not have any special
treo.tm'.!nt, as such, under the Internal Revenue Code of 1954.
The bills are subje
to estate, inheritance, gif't or other excise taxes, whether Federal or state, but
a.re exempt from all taxation now or hereaf'ter imposed on the principal or interel'
thereof by any sta.te, or any of the possessions of the United states, or by any
local tuxing 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 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 (current revision) and this notice, PI"
scribe the terms of the Treasury bills and govern the conditions of
their.ls~.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
-
~
ac~S, e. g., 99.925.
Fractions ~ 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.
Banking institutions generally may submit tenders for account of customers
prodded the names of the customers are set forth in such tenders.
others than
banking institutions will not be pennitted 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 gua.ra.nty of payment by an incorporated bank or trust compa.ny.
Dmnediate1y 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 a.ll tenders, in whole or in part, and his action in any such respect shall be
tinal.
Subject to these reservations, noncompetitive tenders for $ 2~OO or
less for the additional bills dated
1ng until maturity date on
April 25~963
October 24, 1963
,(
91
Me
days remain-
) and noncompetitive tenders for
QMi)
$100,000 or less for the
~
182 -day bills without stated price from any 'one
~
bidder will be accepted in f'u11 at the average price (in three dec1ma.1s) of acCepted competitive bids tor the respective issues.
Settlement for accepted ten-
ters in accordance with the bids must be roMe or completed at the Federal Resel"V!!
Banks on
July 25, 1963
, in cash or other immediately available funds or
~
In It. like face amount of Treasury bills maturing _ _...:J'~u:;;.;;fr;w;YT.~::E2:5~1:;.;9;;.;;6;.;;3___ • Cash
254
TREASURY DEPARTMENT
Washington
July 17, 1963
FOR IMMEDIATE RELEASE,
~EXJOOOOfJfX
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two ser1,
of Treasury bills to the aggregate amount of $ 2,100mO,000 , or thereabouts, to
cash and in exchange for Treasury bills maturing
of $
July 2$1963
, in the amou:1U,uvv
,~~ Dills
2,10tll00,OOO, as follows:
91 -day bills (to maturity date) to be issued
W
in the amount of $1,300,000,000
OW
, or thereabouts, represent-
til
ing an additional amount of bills dated
and to mature
October 24, 1963
,
July 25, 1963
April
iii
1963
, originally issued in the
0(i5jX
amount of $ 80l'fiiiOOO
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $ 800, 0-tW00
Wi
July 25, 1963
, or thereabouts, to be dated
, and to mature
XiW
January 23, 1964
fiii
The bills of both series will be issued on a discount basis under competitiv
and noncompetitive bidding as hereina:rter provided, and at maturity their face
amount will be payable without interest.
They will be issued in bearer form 0111)
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturitY,value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Eastern/~1me,
Monday. J~2' 1963
Tenders will not be received at the Treasury Department, Washington.
Each teDdeJ
must be for an even multiple of $1,000, and in the case of competitive tenders tJ
price offered must be expressed on the basis of 100, with not more than three
"
;(,/~ ~ __ 7a l' -,-V)--)
--"
(to matul
~ID1t of ~ 1,300, O(
,1! imount of bills
:(toDer L4,1963, 01
:,J~~, the additi(
l:!I!ole,
TREASURY DEPARTMENT
FOR IMMEDIATE RELEASE
July 17,
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
$2 ,100 ,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing July 25, 1963,
1n the amount of
$2,100,500,000, as follows:
9~day bills (to maturity date) to be issued
in the amount of $ 1,300,000,000, or thereabouts,
additional amount of bills dated April 25, 1963,
mature Oc tober 24,1963, originally issued in the
$801,100,000,
the additional and original bills
interchangeable.
July 25, 1963,
representing an
and to
amount of
to be freely
182-day bills, for $800,000,000,
or thereabouts~ to be dated
July 25, 1963,
and to mature January 23, 1964.
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, $50,000, $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 p.m., Eastern Daylight Saving
time, Monday, Ju ly 22, 1963.
Tenders will not be
received at the Treasury De~artment, 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
fOffiarded in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
.
Banking institutions generally may submit tenders for account of
provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account. 'renders will be received
without deposit from incorporated banks and trust companies and from
~Sponsible 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
fortrust company.
~ustomers
D-913
- 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 $ 200,0000r less for the additional bills dated
April 25, 1963, (91-days remaining until maturit¥ date on
October 24, 1963) 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 Banks on July 25, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing July 25,1963.
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. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained frc
any Federal Reserve Bank or Branch.
000
of the close cooperation which has existed between our two
countries for so many years."
DRArr July
t~,
1963
Treasury Department
Washington, D. C.
July /e, 1963
For imme~e release at
July
/~, 1963
3
A.M.
P.M. EDC
THE NETHERLANDS PREPAYS $70 MILLION OF ITS
POSTWAR DEBT TO THE UNITED STATES
The Government of the Netherlands is prepaying $70
million of its postwar debt to the United States.
Minister of Finance Zijlstra has notified Secretary
Dillon of his Government's intention to repay in its entirety
the remaining balance of $21.1 million of a $50 million 1945
Export-Import Bank credit, and also to repay $48.9 million of
the remaining balance from the $129.5 million "Marshall Plan"
loan of 1948--a total prepayment of $70 million.
This action of the Netherlands Government is in addition
to the prepayment of other credits totaling $39.4 million
which it made in 1961.
In responding to this action by the Netherlands Governmen
Secretary Dillon said:
"The ability of your Government to mak
these advance payments, together with the more than $39 millio
in similar payments in 1961, is eloquent testimony to the present strength of the Dutch economy.
I am pleased that these
loans helped to contribute to that strength.
"The Government of the United States is most appr"eciative
of this action by the Netherlands Government as further evidet
(~)
- 7" i//f
TREASURY DEPARTMENT
=
July 18, 1963
FOR IMMED lATE RELEASE
THE NETHERLANDS PREPAYS $70 MILLION OF ITS
POSTWAR DEBT TO THE UNITED STATES
The Government of the Netherlands is prepaying $70 million
of its postwar debt to the United States.
Minister of Finance Zijlstra has notified Secretary Dillon
of his Government's intention to repay in its entirety the
remaining balance of $21.1 million of a $50 million 1945
Export-Import Bank credit, and also to repay $48.9 million of the
remaining balance from the $129.5 million "Marshall Plan" loan of
1948 -- a total prepayment of $70 million.
This action of the Netherlands Government is in addition to
the prepayment of other credits totaling $39.4 million which it
made in 1961.
In responding to this action by the Netherlands Government,
Secretary Dillon said: "The ability of your Government to make
these advance payments, together with the more than $39 million
in similar payments in 1961, is eloquent testimony to the present
strength of the Dutch economy. I am pleased that these loans
helped to contribute to that strength.
"The Government of the United States is most appreciative
of this'action by the Netherlands Government as further evidence
of the close cooperation which has existed between our two countries
for so many years."
vOv
D-9l4
For Release On Del ivery
.
J~ 0
v
TREASURY DEPARTMENT
Washington
REMARKS BY THE HONORABLE JOSEPH W. BARR
BEFORE THE 1963 CONVENTION OF THE
NATIONAL ASSOCIATION OF LIFE COMPANIES
AT THE SHERATON PARK HOTEL
WASHINGTON, D. C., 12:30 P.M., EDT
THURSDAY, JULY 18, 1963
THE TAX PROGRAM AND THE BALANCE OF PAYMENTS
My subject today is the balance of payments. It is a very
topical one, for President Kennedy has just sent a message to
Congress on the same subjecto Before I discuss that message,
however, I'd like to take a closer look at the problem.
You are, I am sure, all familiar with our recent domestic
economic experience~ We've had two recessions in the past six
years. We've had four Federal budget deficits in the last five
years, totalling almost $25 billion. During that time, at least five
out. of every hundred Americans willing and able to work have been
unable to find work, and today more than four and a half million
Americans are job1essu We've had a total output -- as measured
by our Gross National Product -- far below potential, and today
that gap is something like $35 or $40 billion.
All that adds up to an immediate, imperative need for a
broad program of tax reduction along the lines President Kennedy
has recommended. What many people fail to realize is that our
international economic goals place an equally urgent label on the
tax progr am.
Our international economic problem is simple to describe.
Our total payments to foreigners are greater than our total
receipts from them. This has been the case in every year since
1950 except for 1957. In 1960 the deficit was $3.9 billion.
This was reduced to $2.4 billion in 1961 and to $2.2 billion last
year.
.
Traditionally, of course, the United States, as the major
industrial nation of the world, has always had a commanding position in world trade. The fact that our exports always outstripped
0-915
- 2 -
our imports gave us a comfortable trade surplus year after year.
But now we are carrying heavy responsibilities of defense and
foreign aid, our people are spending large amounts on travel
overseas, our firms are buying and building plants abroad and
foreigners are borrowing large sums in our capital market. We
still have a comfortable trade suplus, but it isn't big enough
to offset these other outlays.
The only part of our defense and foreign aid spending that
affects our balance of payments is, of course, the amount spent
overseas -- and we are steadily reducing that figure. Eighty
percent of the new commitments the agency for International
Development made in the year ending last June 30 was for U. s.
goods and services. Foreign aid expenditures overseas were a
little over $1 billion in 1962 but we expect to have the rate
down to $500 million a year by the end of next year. The Defense
Department expects to be able to cut military expenditures overseas about 10 percent without adversely affecting our military
commitments. Even more significantly, Defense has arranged for
substantial purchases of military equipment in the U. S. by same
of our allies.
One of the most important areas of all in our balance of
payments is the area of capital flows -- both long-term and shortterm. Its importance is well illustrated by the fact that the
net outflows of U. S. private investment -- short-term and longterm -- were more than $3 billion in 1962, more than our balance
of payments deficit"
The short-term flow has been a nagging problem. Short-term
outflows plus unrecorded transactions which are probably largely
short-term capital ran about $l~6 billion last year, and apparently have also been high in recent monthsw That, of course, is
why the Federal Reserve Board raised the discount rate, and I
expect that this will firm up the short-term rates and improve
this area of our balance of payments significantly.
I'd like to point out in passing that the large flow of
liquid savings should largely insulate the higher short-term
rates from the long-term markets, and so there is no reason to
see in this move any threat to the present recovery_ I think,
however, that high.er short-term rates serve to emphasize the
urgency of our need for tax action ..
- 3 -
'.15 .l.·
.L
There has also been a problem in the long-term area.
Direct investment -- in factories and business enterprises
controlled from the United States -- has been levelling off,
but portfolio investment -- in securities and loans -- has been
rising sharply, from $850 million in 1960 to $1.2 billion in
1962, and this year is running at an annual rate of well over
$1.5 billion. Clearly some action is called for.
We are against capital controls, because they are contrary
to our basic principles of free markets. The problem is how
to stern the flow of long-term capital from the United States
which results from foreign borrowing here, without violating
these basic principles and without a substantial rise in the
long-term rate structure which would throw our economy into
reverse. Many European capital markets are burdened by restrictions. Others lack the efficient flexibility and free market
interplay of competition available here.
The only feasible solution is the one President Kennedy
recommended to Congress today as the newest measure in his
balance of payments program -- imposing a temporary "interest
equalization tax" on purchases by Americans from foreign issuers
or owners of new or outstanding foreign securities.
This tax will have roughly the same effect as increasing the
interest rate by one percentu The tax which the President is
calling upon Congress to enact would run from 2.75 to 15 percent
depending upon remaining maturity -- with a 15 percent rate on
equity stock. It would remain in effect through 1965.
The tax would not apply to direct investment or to securities
or loans of shorter than three-year maturity. It will not apply
to commercial bank loans, or to purchases of securities of underdeveloped countries or companies operating chiefly in such countries. The tax will, however, help to bring effective interest
rates in the United States closer into line with those abroad,
without interfering with export credit or with the need to foster
more rapid development of the free world.
Foreign securities
subjlect to the tax, nor
Dealers or underwriters
resold to foreigners as
already owned by Americans would not be
would securities purchased by foreigners.
would not be taxed on stock or securities
part of new issues, but all Americans who
- 4 buy new or outstanding securities from foreign owners or issuers
would. To avoid unfair burdens on nearly completed transactions,
the tax would exempt offerings for which active registration
statements are now on file with the Securities and Exchange Commission. In addition, purchase commitments already made would not
be affected.
Thus, without resort to limitations on the amount of foreign
issues, and without Government screening of borrowers, price alone
will be used to reduce the capital outflow from long-term loans,
stocks, and bonds -- both publicly marketed and privately placed,
both new and outstanding.
The President naturally asked that such a tax be effective
today, and he has been assured by the Ways and Means Committee
that it will act promptly on the matter -- after it has reported
out the overall tax bill.
This was not all of President Kennedy's message. He announced
a number of other measures, among them moves which will over the
next 18 months reduce the balance of payments impact of government
expenditures abroad by about $1 billion annually -- over $500
million in the military area, $300 million in the foreign aid
program, and $100 million in programs of other areas of government. The interest equalization tax and the increase in the
discount rate should save at least again that much in the capital
account. Gains of this amount -- about $2 billion a year -should give us the time we need to improve our basic competitive
position and attract more foreign investment to the United States.
The President made it very clear that he did not consider
the measures he has already taken -- including those contained in
the message -- a complete solution to our balance of payments
problem. He frankly indicated that these were interim measures,
intended to prevent excessive deficits while our long-term measures take hold.
And chief among the long-term measures, as he indicated, is
his program of tax reduction and reformw This issue shares with
civil rights the top priority on his legislative program.
- 5 And that is the crux of all Administration economic policy
that the twin goals of international payments balance and domestic
prosperity and full employment are compatible, and can be vigorously pursued simultaneously. There is no need -- and the Administration has no intention -- of sacrificing one area in order to
make gains in the other.
Nowhere is this close relationship between our domestic and
international economic goals more clearly demonstrated than in
the compelling reasons underlying the President's tax program.
I do not have to enlarge upon the domestic need for this program.
But I will spell out some of the implications the tax program has
for our balance of payments
0
There are a number of long-term factors working in our favor
to reduce and eventually eliminate our payments deficit, but they
need time and initiative from us if they are to be successful.
One is the pattern of rising domestic investment, under the
stimulus of last year's two investment tax incentives -- depreciation reform and the investment credit. This tax reduction for
American business of almost $2.5 billion a year would be matched
by an equal amount of annual tax reduction in the proposed corporate rate reduction President Kennedy included in his program.
The additional impact of the individual tax reduction, which
would be much larger, would also act as a spur to investment
as rising demand and falling tax rates gave greater hope of profits.
Thus while the tax program is raising output and producing
jobs, it will also be sharpening the cutting edge of American
productivity -- a vital factor in successful competition against
fureign producers both at horne and abroad.
The Trade Expansion Act of 1962 will not be successful unless
American exports can compete favorably against foreign products.
~ly an American economy operating with high efficiency -- near
full employment -- can offer the maximum competitive challenge
in world trade.
And this brings up a vital point in the w-l0le matter of
eXports, and the need to expand our trade surplus. Government
- 6 is doing everything it can -- now the task is up to American
business. Unless corporations, big and little, exporters and
non-exporters, explore export opportunities with all the vigor,
boldness and know-how they can command, we will not be able to
solve our balance of payments problem as quickly as we should.
At present the United States exports only about four percent of
total output -- the lowest proportion of any industrial nation
in the world. Certainly this nation's producers can improve
that record.
A full employment economy, of course, will demonstrate
clearer than anything else can that investment is a two-way
street. Once we get our economy onto a new and higher level of
activity, with a steeper rate of climb, U. S. investors will be
less likely to send their funds abroad and foreign investment
funds will be far more likely to flow into the United States.
This will help to reverse the present investment trend, and will
go far toward reducing and eliminating the payments deficit.
This competitive export attitude should not be confined to
goods and services. It is equally important in attracting foreign tourists, or in marketing American private securities
abroad. American private firms, for instance, sell only about
ooe-tenth as many securities to foreigners as foreigners sell
to Americans -- and that fraction has been dwindling. This
year, for instance, sales of such securities to foreigners are
running at an annual rate of less than $150 million. Restrictions imposed by foreign governments are partly to blame and the
U. S. Government has been urging their removal. But more
aggressive efforts by American firms to sell U. S. securities
abroad would payoff, not only for the companies, but also
for the nation.
I am confident that eventually the r~s~ng and sustained
prosperity resulting from the tax cut will reduce the net outflow
ofU. S. private capital. Eventually, I am sure, European
capital markets will be strengthened, made more flexible, more
competitive, less burdened by restrictions, so that savings
which now take the form of balance of payments surpluses will
be used to finance domestic investment, reducing the need to
borrow in the U. S. Foreigners will also be able to use those
markets to a greater extent. Eventually, I am sure, we can also
~,
'.~
r:.:
l
~~
'.J
- 7 expand our share of world export markets. In all these ways we
can reduce our balance of payments deficit.
The tax program actually embodies our basic economic
program -- to reduce and eliminate the payments deficit while
we move toward a higher level of economic activity at home.
The economic course the Administration has charted for the
nation is one of international economic stability through domestic prosperity and full employment. It is not a simple goal, and
the path will not be completely smooth. The essential thing to
remember is that we have no time to waste.
That is why.the tax program
reducing corporate and
individual taxes to free investment and consumer funds -- is so
essential to our national well-being. It is an imperative -and urgent -- national need. I urge you to support it wholeheartedly.
2
1962
actual.
Definition
January
budget Actual
Expenditures by major aeency - Cont.
Ci vilinn agencies - Cont.
Housing and Horue Finance Agency •••••••••••••••
United States Information Agency ••••••••••••••
Veterans Administration •••••••••••••••••••••••
Other Independent Ag~cies ••••••••••••••••••••
District of Columbia ••••••••••••••••••••••••••
Cho
tr
-
bud
$1,088
161
5,532670
83
$400
155
5,173
527
-4
39,564
75
37,834
-l,
94,957
646
93,103
513
-l,
Total. expenditures ••••••••••••••••••••••••
88,419
633
87,787
94,311
92,590
-1,
Admin1strati ve budget surplus (+) or deficit (-).
-6,378
-8,8ll
-6,233
+2,
$81,409 $85,500 $86,357
24,325 26,863 27,735
+~
$739
148
5,392
688
72
Subtotal, civilian agencies •••••••••••••••
Allovance for contingencies •••••••••••••••••••••
Subtotal. ••••••••••••••••••••••••••••••••••
Deduct interfund transactions ••••
0 • • • • • • • • • • • • • • •
66
FEDERAL RECEIPTS FroM AND PAYMENTS TO 'mE PUBLIC
(Fiscal years.
In millions)
Federal receipts from the public:
Administrative budget receipts (net) ••••••••••
Trust and other receipts (net) ••••••••••••••••
IntraGovernmental. and other non-cash
transactions •••••••••••••••••••••••••••••••••
-3,932 -4,329
Total Federal receipts from the public •••• 101,887 108,431 109,762
Federal pay.:nents to the public:
Administrative budget expenditures (net) ••••••
Trust fund and other expenditures (net) •••••••
Intragovernmental and-other non-cash
transactions .................................
Total Federal payments to
Excess of cash receipts from or
-3,847
87,787
25,175
-5,796
NOTE. --Figures are rounded to nearest million and rill not
18, 1963
92,590
26,583
+lJ
-lJ
-2 J
to (-)
the public .••••••••••••••••••••••••••••••••••••
July
94,311
27,275
-5,279 -4,812 -5,285
the public •••••• 107,683 ll6, TI4 113,888
~nts
-I
-8,343
-4,125
nece88ar1~
+4)
a4cl to totI
Attach!
AIl/.Th"ISTRATIVE KJDCZT RECEIPTS ~~ EXPENDIruRES
(Fiscal years.
In millions)
1963
1962
actual
Definition
January
budget
Actual
Receipts by source
$45,5'71 $41,300 $41,596
20,523 21,200 21,561
•
l!:::xci se tax.e s •••••••• ~ •••••••••••••••••••••••••••
9,900
9,585
9,914
4,408
}aGcellaneous receipts ••••••••••••••••••••••••••
4,423
3,204
All other receipts ••.•••••••••••••••••••••••••••
3,158
3,338
3,311
Subtotal •••••.•••••••••••••••••••••••••
82,043 86,146 86,870
646
Deduct interfund transactions •••••••••••••••••••
633
513
Net receipts ••••••••••••••••••••••••••••••
86,357
Individual income taxes •••••••••••••••••••••••••
Corporation income taxes ••••••••••••••••••••••••
e- • •
Ex;rendi tures by major agency
Mili tnry and Space Agencies:
Department of Defense: Military functions ••••
Foreign Assistance, Military ••••••••••••••••••
Atomic Energy Commission ••••••••••••••••••••••
National Aeronautics and Space Administration •
46,815
1,390
2,806
1,25'7
Subtotal. ••••••••••••••••••••••••••••••••••
52,,268
Civilian agencies:
Legisl~tive Branch and The Judiciary ••.•••••••
Executive Office of the President •.•••••••••••
Funds Appropriated to the President:
Foreign Assistance - economic •••••••••••••••
International financial institutions and
Peuce Corps ••••••••••••••••••••••••••••••••
Public \{orks Acceleration •••••••••••••••••••
Other •.•••••••••••••••••••••••••••••••••••••
Agriculture:
CCC, and Special Export Program •••••••••••••
Other •••••••••••••••••••••••••••••••••••••••
COr::t:le r c e ••••••••••••••••••••••••••••••••••••••
48,300
1,150
2,810
2,400
55,270
210
224
29
25
1,,836
2,100
2,,034
183
169
300
40
163
62
-21
33
4,230
2,,439
594
5,163
2,,756
4,,215
Justice •••••••••••••••••••••••••••••••••••••••
294
620
Post Office •••••••••••••••••••••••••••••••••• *'
State .••••..••••••••••••••••••••••••••••••••••
Tre a.su:ry :
797
802
307
457
Interest on the public debt •••••••••••••••••
9,120
Ot..~er
1,,053
9,,700
1,,1ll
•••
Labor •••••••••••••••••••••••••••••••••••••••••
•••••••••••••••••••••••••••••••••••••••
Export-Import Bank of Wa.sh1ngton ••••••••••••••
Federal Aviation Agency •••••••••••••••••••••••
General Services Administration •••••••••••••••
999
908
101
~
23
2,600
Health, Education, and Welfare ••••••••••••••••
Interi or .•••••••••••••••••••••••••••••••••••••
tI
209
4,138
145
1,106
5,048
1,,054
317
239
Defense - Ci V'il •••••••••••••••••••••••••••
48,249
1,711
2,158
2,552
-224
791
532
661
1,128
4,904
1,028
317
253
155
405
9,891
1,133
-392
726
465
b'
268
6
C(')r~o;::(:.::'.t~ C:.!'!.3h stttt~::-:7t.--~d"..;.ero.l ~nttJ
'by ¢5.2 bill1c:l trr.r:. :fizlc:ll year 1$62 tQ l,963.
~ th~ r1s~
to tl:e public rooe
'nW increa.se,
0: $4.8 b1ll1cn in s,1n1niatmt1va w%at
12 due r.s1nl:r to hi;:pe:"
t...~t l'\uAl C".....~1tureG.
~
CJtl')enditures,
~30 ~turco
1ncrcXiC:! in ta'"~ by $l.~ blllloOl, ~1th th3 lar&sct. rue ~
JlQr.r.:U ZZ'O'.1~
1:1 aoc1:Jl. Dc:cur1ty
occ.'tl.n"inr:; 1.'1. tho
FGderal
oat~
ana tho J.arge.st
ua.t1~ l-lm"t.~
MGooat1cn
rG:duct1cn
c:ec~ ~t.
t.ruct i'und.
~c\lc...""tU. roce.i:~t£s
,.. ~rar.
tt.1l IJUblla inercaDod ~'7.9 b1lllon 'betwen t1a4
$5.}o)
niUie:n in t.bG ~~t ~~-"H.t1.:.rCC c'f ~~,.t..-LJG1Sar61 C4lte~
:~ly t.h.o Fc~r:l.l bc=e ~,,~~'~ # ~d G1l iJ.:..~i:e
CX;<3:"...:'J~f'~ ~-rC!1 tl:l~_tzr~:!!m fl..ns1~:rt..~~t'\' t~
,
CC=:A.P.ICCiJ o;? n;-..c...~
a: $m
fl'tr.d8.
n::'m:as ron 1.963 '$cTm
~
!/i:::lrdst!"ati'va m~0·~~. --Z"::penoitt:rc:: dm"~ ~1.cctll.
b1lllc.:l ~ tbln durin:; l$62.
c:lc!;v to &::>
(;Q
pcreent~
Dor~t
I
Wft ~.8
Of t.lli 1nercaso, ,$3.8 b1ll1cn, or
'£0: .nu~ e....-d SI'.I3.CO ~1ea am4 ~ inter.
at Azr!cultw"e,
ir.cr0.x;:cd Qnlcz 0:
l$63
J.:J. cf1i1tiar:.l ¢J,.1. b1ll1cn oZ tr.e illC1"CUG as t(1l
tho public: debt.
tb
\,"'Q.3
mll1CD 11&
~::~t.s
xmi~ly
by tho
tl:.e Ccmllcx11t.y Credit Corpora,t.1Q1l
Eou.:;1~
and Heme F1n!lr..ce Agenc:l an4 thl
Vct.e~"'..<;j Ad::1n111trnt1on, ('2) r...-.cuct1on: in EA1'ort-~ort Eru1k loa.n opon
M.- '.~
~:~/)1 ~
1;1=,
"nd () tlle
~::.lr"
.
1n l$E2
0::"~~
ext~c1t..--a. ~~nt ea~:rlC.l~:l.t!on, r~-ul.t1ns
pa.-t17
on;~t
by.
~GS
1n othc:r
in
~
subst.a:t.1al <lacl.1DG
pro~, cb1~ ~~
he4tth, cducae
t1~~ c.cd ,.~UC' act.1v1t1G~H ~or na~ ftGCUl"Ce Pl"Osn:u:=
at
:!n:l~~l"Q
c.:li1 the
~..lt
ot tho Interior, and tor toreie;n
;Ar:1n1ztrD.t1vo Wdset reca1~ inc~ _
y~:::: 19"'.;2 ~
1963.
r
$2.0 b1ll1= or
.CODa
bW.1a1 betveen t1GC2
AU C3.t~C~-1e:J or 'ta%ca vaN up f3/Cr tbc1r
but tho mJ~ 1ncr~~a \.~-e
lect.1~1
of tbo Carps
~1v14m'] 1D:a:ze
1962lAn
tax col.-
¢l.o b1lll= of ccrpcra.t1o: 1nc:ar.e taxM, u4 $1.2 bUl1G1l of
•
~c.rit:; fo:..· t.~ ~ndnr y~~ 2962 tl:1!n bad been CGt1Ztcd 1n Jan\W'7.
c1~flc1t trool the: J~J c~t1r.n.tc 1z $1.6 b1lllon ~tor tha.n the declJM
in tho
~nistrnt.1vo
ru:cow:tcd tar by
'budgot. dorlc1t.
4cvclO'~ta
'rhis d1tfercmce 10
since JtJr..;ary in tho
~
tr&r~t10llS
or ledorel
t.n:::;t fu:-A3 (ir.cluding Gcv~l"tll:lc:rt &:pCrul0re4 enterpr:l.Cea); l.ooce1pta
up bY'
t.ho
~ :l1111Cll
ever tho
~'""G\lst. i~QS
~;Unly to :t.ccaunt
=.1llion)
am
J~./ e~'imte
oxpendlturc~
were 4C111t1l
occurred in too foreign GUslotai1ee tnmt tundJ use4
tor :111Ut.r1
a:isir;tQncc l!ale$ transact10W1 (~
$381
1n tho ~l~nt trust 1\uJ.d (up $214 mUllon).
'nle ch:ance in tot3.l tru:at
dccre~o
vh1lA
wro
:rune. e~t1%rca :trom the
111 net cxpend1"tul:'ca cceurred in tho FedcrGl.
J~
ostimate
nat1o:zll1m't~.
J..saoc!D.-;ial necondar.Y mrket tl"U3t. 1'\md (dorm $971 m1111QQ) rGt'lect1ng
1ncr~ed t:4lc3 ct J:lOrt~••
a=:
is '.;porit.-t==
(elM.4;ea wU,tra)S-
Sale!J
or GC'.rC~7Z.···.N~t
teld fin.1Mc1:J.l
-
t1c:l, tho ~o..-t-L..~ ~.k, and
too
c.n~ctfJ
by tho Vetaronll MmSn1a'tlu-
~J.Cing end Bccm F1.wlnco ~ wre
iDcrec.scl by $0.8 b1lllon over the ~ ent1.r.ilted 111 J8.'tA11'J:rTvith tho rccct::::lCndat1ons of tho
Rc!>c:t't
'too tho Prc::1dcmt
·or
ID ~
thD :redelUl
Credit Pro~ ~ttco laJt Febrotll7, tr..ch~n1Gtrat1on bD.s intcna1t104
1t:l
p~~
of cu'bct1tu"'~~ privt:.tc fer pubUc credit.
'rh1s effort haD
been s:t£9l1ti~tly cidcd du.~ recent :o:rt;ha by tho pi.cJr-vifUl a.va1labWtJ
~
z
pri'W.te
i"un~
£cclctng-' ir:/c3tIilent.
M.-A.. h~.Jov
~ wtAt, ~oJ<.
l-!ost. otiJ,:,'r o.,zenc1es aJ -II;) =~~~ ~turcJZff*i)il' <lice ear11or,
IQZ~~M ~ la.r~ct
"
c.ct1V1tie~ otter t~ th~ 1mrol"l'1n8 1::C~ed BaleS
!l...~~
m-~:4~cu:J
$ll2 mll.1ou for tho Atcm1e EnerGY Cam:1ss10%1. Othor
s·".o"cr reduct.1ala ocC'".n-rcd, 't.-'bich, 121 totQl, amounted to sa\"eral
T.n 1110."1 doll:1ra (see
'(wG>re hite1 ").A'i'X~~
~t.
(2) ~8
of Ecal.tb, ~'t1o:l, c.nd ~clj'a...'>4Q (rza~ publ10 aasiztance
~"3); ~~a (4)
~red
or ~"'e"'~;
for too necalcratc.1 public ,,"Or'~ ~; (3) $l~ b11l1aa tor the
'01' J 1 en
CZ
rcauctia:l3 coo.s13ted at (1) ;436 m11Hcn f~ hcua1:Ja
table a.tt.ncbcd).
~
~r
reductions vere ot!,=et
by h1~ th3ll W1t1c1JQ.~ cxponditurcs
ct ."l.S..~C1:l.tu..~,
t:P
~
¢2G9 cdJJ1o.u,
~ fa:t'tho
tor
1\
the DeptJ.rt-
CC'I'7i!lQUt7 Crec11t
Co...-pOl"at1cu (1ncl.ullr.s upec1al export ~h 1ntereat on the publ10
"~
dcbt~ 'UJ? ~l m1J11c:&; d
-z:.,
tho lrat1ona1 ~ aM S,pace M'dm.tn&$..
2
::C~-..:.l"eo
:'O'J.;::l
rccci!''trl c.r..d c..~itUl"e::J on
acc::ru:ll rather tb:l.:l a c:cah 'bul
l1rell;:r1n;::r.ry cst.1mtes 1.~CQ.t.c eAp~turcD
••
of $10.) b:Ul1co, ~ a ficcal y~
um!<;;.'"
C.!l
~ J~
cstimtea
1963 C!af1c::tt
at $J.lJ b1U1co, l"Oed
~
$4 bUl1cm,
.~
(':'hcoo cct1l:atCfl &ra l)rel:lm1zm.17 aDd ana
)?."U"c...:i vit!l tho est1lr.a.tQG ~c l.:lnt Ja:~ 1n tha ~eet. 4ClC\imeJlt, the
tor 1962,
l"'eu-...J.tz
end. ~ c~~ ~ tha J~ esttmteaa
7~:"~~~S
(fuca]. ~s.
In b1l.l.1ons)
1253
f::::J.::io'trativc ~\lt!cct:
?":"':_.:................~_?
~.:J-.- l'C~:pvS •••• . . . . . . . . . .
400.
.,..
$85.5
~3r.~ ~cnJlturos •••••••••
nudgct dofic1t
-1.'
-2
(-l •.••••••
CC1:Golicmtea cash tIt:Lt~·~:
R~cipu. i"rct.l the publ1o ....
fu
rtt:a to tbo F.J.blic ••••••
~
II:III:I:Ii
101.9
JOr;!
108.4
116.8
109.8
~.8...
~~a.3::
1::4 •1:;:
I
&~:tnintl"ati~ btll3Q~t.-'1bree
~.6
-
b1lllcm rcduct1cn 1n
J~ ~
esU1:I:ate.a;
too
mJQJ-
em
113·2.
at ta.ctors aeccante4
tar
ttdmo1stl'&ttve bu4gat 4efic:1't belw tho
:t'1rot, sAle. of
Q~.cwa4 t1DmC1&l1l
273
r~-r;-~'.=:
A.:'l.
71
Dr\l.Fl' -
r=iSPlU'.w~
(D!S:)
~1l0 Tl-c:J::"~-:r c~hly DtAt~
.rune ;
to be:
o:r rccoll'ta
;'l-c;;!ri~<:O<m:'C;1J Dh~l'll
fi:t=l.
tor
Qnd expeDd1tures
~ 1953 conucl.1&:.ted
co.oh r~...onto ~ $113.9 'bill1Q:l, $2.9 b1ll1~ lower tbml CH:t1mte4 1D
tt.l Jr:w.'I.ZJ.l7 'b~dZQt.
t.ron
Reco1pts wre $109.8 bUllen, $1.3 bw.tQl h1gber
'the JTJ.:l\J:1.r~ czt1::ate.
¥nl3 ~4.1
ks
fA.
ro:;ul.t, tba fiscal 19G3 cull 4otta1t
b11l1c.n, Just ~ tha mount
:::.:~:cd1ture
rcduet1QlS wre
t)f
tho earl1cr eat1m:r.tG, and
v1~cqlx-enll, r(S:f~1.ng ~tor
":;lca e:~-oc'~::d in efforts to c;ubstitute f.;rivate
~~sib1c,
ts:c
econa::!cs 1n
col.lcct1ori!1
of CCQc:::lc activity 1."1
~
A
s-;1ll
0:1
tor public credIt
~ti02::!.,t;, a:z:d vrozn= ~;3i"9'
re~tcd
~d.-~
tran
2.
~nt
r.-.:r:r.bc...
or
conthtl.
:r~ctors, 1nc~udlng
~
.
~,
'GIbereve%'
~e4
'rhe
the hieber levI
owwer, tho
.1.4)-
~
ecCIDt::D1·~.
~ ~
IvA
w v~d,~, aM tb1C1 bna Ii direct 1mpaet
nO"~A_iGi"fei$~y~ ~t£:
tho Wdzct ~ts.
E'UCceos
~
J!a.d enleni1v ~ bean a year or 1Ull. e=pl~,
tl::4 fi~CD.l ~ l$63 lr.:.dsot vcWd have been 1n sur,pl.,us.
On ~
aemjn1otmt1ve wdzet basiG-Wdch
excl~s
the tranGG.Ct1cma of
Ydle...-.u t;-~t :W'1du--~ fiscal 1963 dc1'1c1t was $5.2 bUllen, $2.6 b:Ul1CID
belt7.1 the/. ~t
~~ ~.b~Il unt1c1:pt4te4 1: J~I and
\jL..v 1;~-'tJI C{ lJ 1.. rI ::fl. (A.~
lea", ~Gl\U':U"~1tures during tho 1'1acal. 708l''
'b1lJ.iC:r:l, ~. 7 b1ll1= balQl the Ja.IllJIJZ7
~ce1l>t:i t~
"2-
;o.1111ll1<lG
1963 V~ $92.&
cst1mte. A=1trlatraUve 'bu4p\
$80.:" b1ll!c=, ;.o.9111ll1C1l bidaer ~ aDt1c1pLtc4.
On an administrative budget basis -- which excludes the
transactions of Federal trust funds -- the fiscal 1963 deficit was
$6.2 billion, $2.6 billion below the amount that had been anticipated
in January, and $0.2 billion less than the fiscal 1962 deficit.
Ex~nditures during the fiscal year 1963 were $92.6 billion,
$1.7 billion below the January estimate. Administrative budget
receipts totaled $86.4 billion, $0.9 billion higher than anticipated.
In terms of the national income accounts -- which include only
those transactions directly affecting current production and incomes,
and measures receipts and expenditures on an accrual rather than a
Cash basis -- rough preliminary estimates indicate expenditures of
$113 billion, receipts of $109 billion, and a fiscal year 1963
deficit of $4 billion, slightly under the January estimate. {These
estimates are preliminary and are subject to change when the official
~partment of Commerce figures are available.}
D-916
- 2 -
The following table shows the results for fiscal year 1963 as
compared with the estimates made last January in the budget document,
the results for 1962, and the changes from the January estimates.
FEDERAL FINANCES
(Fiscal years. In billions)
1962
Actual
1963
January
Estimate
$87.8
81.4
$94.3
85.5
$92.6
86.4
$ -1. 7
6.4
8.8
6.2
-2.6
Consolidated cash statement:
Payments to the public ....
Receipts from the public ..
107.7
101. 9
116.8
108.4
113.9
109.8
-2.9
+1.3
Excess of payments ••••••
5.8
8.3
4.1
-4.2
Description
Administrative budget:
Budget expenditures .•.•...
Budget receipts ...........
Budget deficit
• e •••••••
Actual
Change f
Januar
Estimat
+0.9
COMPARISON OF BUDGET RESULTS WITH JANUARY ESTIMATES
Administrative budget.--Three major sets of factors accounted fc
the $2.6 billion reduction in the administrative budget deficit bel~
the January estimates; first, sales of Government-owned financial
assets were increased by $0.8 billion; second, additional
expenditure reductions, involving almost all Federal agencies,
totaled $0.9 billion; and third, Federal tax collections, as noted
earlier, were $0.9 billion higher than anticipated.
Sales of Government held financial assets by the Veterans
Administration, the Export-Import Bank, and the Housing and Home
Finance Agency were increased by $0.8 billion over the amounts
estimated in January. In line with the recommendations of the Repor
to the President of the Federal Credit Programs Committee last
February, the Administration has intensified its program of
substituting private for public credit. This effort, has been
significantly aided during recent months by the plentiful availabili
of private funds seeking investment.
- 3 Most other agencies had lower expenditures than were estimated
earlier. The largest reductions consisted of (1) $436 million for
hoosing activities other than those involving increased sales of
"sets; (2) $238 million for the accelerated public works program;
(3) $144 mi.llion for the Department of Health, Education, and
Welfare (mainly public assistance grants); and (4) $112 million for
the Atomic Energy Commis s ion. Other numerous smaller reduc tions
occurred, which, in total, amounted to several hundred million
dollars (see table attached). The reductions were partly offset
by higher than anticipated expenditures for the Department of
~riculture, up $269 million, primarily for the Commodity Credit
Corporation (including the Special Export Program); interest on the
public debt, up $191 million, and the National Aeronautics and
Space Administration, up $152 million.
Individual income tax collections accounted for $296 million
of the total $857 million increase in administrative budget receipts
over the January estimates. Corporate income tax collections
accounted for another $367 million of the increase, reflec ting a
higher level of taxable corporate profits for the calendar year 1962
than had been estimated in January. Most of the remaining increase
in administrative budget receipts was due to higher collections of
estate and gift taxes and excises. These increases were slightly
offset by lower than anticipated collections of customs duties.
Consolidated cash statement.--The $4.2 billion reduction in
the cash deficit from the January estimate is $1.6 billion greater
than the decline in the administrative budget deficit. This
difference is primarily accounted for by developments since January
in the transactions of Federal trust funds (including Government
sponsored enterprises); receipts were up by $872 million over the
January estimate while expenditures were down by $692 million.
Receipts of most trust funds were higher than earlier anticipated;
the larges t increases occurred in the foreign as s is tance trus t
funds used mainly to account for military assistance sales transactions
(up $381 million) and in the unemployment trust fund (up $214
million) .
The change in total trust fund expenditures from the January
estimate is made up of a number of s izab le increases and decreases.
rhe largest decrease in net expenditures occurred in the Federal
~ational Mortgage Association secondary market trust fund (down
~971 million) reflec ting increased sales of mortgages.
On
)alance, other trust fund expenditures increased by $279 million.
- 4 COMPARISON OF BUDGET RESULTS FOR 1963 WITH 1962
Administrative budget.--Expenditures during fiscal 1963 were
$4.8 billion higher than during 1962. Of this increase, $3.8
billion, or close to 80 percent, was for military and space agencie
and for interest on the public debt. An additional $1.1 billion of
the increase was for the Department of Agriculture, mainly the
Commodity Credit Corporation (including the Special Export Program)
All other expenditures, net, decreased slightly. The major
expenditure decreases resulted from (1) increased sales of assets
by the Housing and Home Finance Agency and the Veterans Administrat
(2) reductions in Export-Import Bank loan operations, and (3) the
expiration in 1962 of legislation authorizing temporary extended
unemployment compensation, resulting in a substantial decline in
expenditures of the Department of Labor. Expenditure decreases wer
partly offset by increases in other programs, chiefly for health,
education, and welfare activities; for natural resource programs of
the Corps of Engineers and the Department of the Interior; and for
foreign economic assistance.
Administrative budget receipts increased $5 billion between
fiscal year 1962 and 1963. All categories of taxes were up over
their 1962 level but the major increases were $2.0 billion of
individual income tax collections, $1.0 billion of corporation incc
taxes, and $1.2 billion of miscellaneous receipts. The latter
increase was primarily because of repayments by the States of loans
made to them for the temporary extended unemployment compensation
program and larger repayments of foreign loans than in the precedil
year.
Consolidated cash staterr~nt.--Federal payments to the public
rose by $6.2 billion from fiscal year 1962 to 1963. This increase
apart from the rise of $4.8 billion in administrative budget
expenditures, is due mainly to higher trust fund expenditures.
These expenditures increased in total by $1.4 billion, with the
largest rise reflecting normal growth in social security outlays
and the larges t reduc tion occurring in the Federal National Mortgat
Association secondary market trust fund.
Federal receipts from the public increased $7.9 billion
between fiscal 1962 and 1963. About $4.9 billion of this increase
was accounted for by higher administrative budget receipts. The
remainder reflects mainly an increase of $3.4 billion in total
trust fund receipts -- primarily the social security trust funds.
Attachment
,~j'
ALMINISTRATIVE BUDGET RECEIPTS AND EXPENDI'IDRES
(Fiscal years.
. I'"
In millions)
Change
1962
January
budget
Actual
from
budget
$45,571 $47,300 $47,596
20,523 21,200 21,567
9,585
9,900
9,914
3,204
4,408
4,423
3,158
3,338
3,371
+$296
+367
+14
+15
+33
actual
Description
Receipts by source
Individual income taxes .........
corporation income taxes ..•••••.••••••••••••••••
Excise taxes ................................... .
Miscellaneous receipts .....................
All other receipt s ...........•.•......•.•.•.•..•
$
It
•••••••
•••••••
It
••••
Subtotal ........................•.....•..•
Deduct interfund transactions •••••••••••.•••••••
Net receipts .......................... ,.. e
•
82,043
633
81,409
86,146
646
86,870
513
86,357
+724
-133
+857
46,815
1,390
2,806
1,257
48,300
1,750
2,870
2,400
48,249
1,711
2,758
2,552
-51
-39
-112
+152
52,268
55,320
55,270
-50
210
29
224
25
209
23
-15
1,836
2,100
2,034
-66
183
33
169
300
40
163
62
-21
-238
-61
4,230
2,439
594
999
4,215
908
294
620
797
307
4,738
2,756
745
1,106
5,048
1,054
317
239
802
457
5,163
2,600
9,120
1,053
101
698
445
9,700
1,111
-224
791
532
Expenditures by major agency
NUlit~
and Space Agencies:
Department of Defense: Mill tary functions
Foreign As si stance, Mill tary ••••••••••••••••••
Atomic Energy Commission •••••••••••••.••••••••
N~iona1 Aeronautics and Space Administration •
Subtotal ........... .,
«> • • •
e • ., ., • •
It
••
e • " ••• e e •
:ivilian agencies:
Legislati ve Branch and The Judiciary ••••••..••
~ecutive Office of the President •••••••.•••••
Funds Appropriated to the President:
Foreign Assistance - economic .••••.•.•..••••
International financial institutions and
Peace Corps ...........•.•.. ., ..•....
«> • • "
•
" •
"
Public Works Acceleration ••••..••.••..••••••
Other •.••.. .••.• e o .
e • ., • • • •
Agriculture:
CCC, and Special Export Program •••••.••••••.
Other ••••••••...•••.•••••••••••.•••.••.•••••
II
•
"
•
•
•
•
til
•
•
•
•
•
•••••
Commerce ••••••••••••• " •••••••• eo • • • •
e " • " •• e ••
Defense - Ci vi 1 ............... ".. ., .. ., •. ., e • • • • e
He~th, Education, and Welfare ••••••••••••••••
8
•
Interi or ..............."...." ... ".••. .,.,."" .., .••
Justice ." ... "....•.•..•. ".".
e
II
Labor .••• ., •••• ., •••••
Post Offi c e ...•
State •• • • • • • • • • • •
ell
•••
I!t
••••••••••••
e • • " • • • • • ., • • • • • • • • ., • • " • ., • •
••••••
"
•
.,
•
.,
.,
•••••
.,
••••
.,
•
•
•
It
•
e
" • • • • • • • • • • • • • • • .,,, • • • • • • • e • • •
'l'reasury:
Interest on the public debt ••••••••••.•.••••
~ther •....•••••••••••.•••••••••••••••.••••••
Fort-Import Bank of Washington ••••••••••••••
~deraJ. Aviation Agency ••••••••.••••••••••••••
neraJ. Services Administration •••••••••••••••
667
1,128
4,904
1,028
317
253
755
405
9,891
1,133
-392
726
465
-2
-6
+425
-156
-78
+22
-144
-26
+14
-47
-52
+191
+22
-168
-65
-67
2
1963
Chan,
1962
agenc~
$739
148
5,392
688
72
$1,088
161
5,532
670
83
$lIOO
155
5,173
527
66
-~
36,150
39,,564
75
37,834
-1,7
.......................
....................
Subtotal, civilian agencies
Allowance for contingencies
•••••••••••
••••••••
Subtotal
Deduct interfund transactions
•••••••• e ••••••••
88,419
633
94,957
646
93,103
513
-1,8
-1
87,787
94,311
92,590
-1,7
-6,378
-8,811
-6,233
+2,5
fro
~
- Cont.
Civilian agencies - Cont.
Housing and Home Finance Agency •••••••••••••••
United States Information Agency ••••••••••••••
Veterans Administration
Other Independent Agencies
District of Columbia ••••••••••••••••••••••••••
Total expenditures
Actual.
actual
Description
Expenditures by major
January
budget
"
0
_
$
•••
••••••••••
...................
........................
D
••••••••••••••••
Administrative budget surplus (+) or deficit (-).
-3
-1
FEDERAIJ RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
(Fiscal years. In millions)
Federal receipts from the public:
Administrative budget receipts (net) ••••••••••
Trust and other receipts (net) ••••••••••••••••
Intraeover~~ental and other non-cash
traTlsactions ............•.•...•.••••••..•••••
Total Federal receipts from the public
....
Federal :paymen-t;s to the public:
A~~nistrative budget expenditures (net) ••••••
7rust fund and other expenditures (net) •••••••
Intracovernnental and other non-cash
transactions •..••.•••••••••••••••••••••••••••
$81,409 $85,500 $86,357
24,325 26,863 27,735
-3,847
-3,932
-4,329
101,887 108,431 109,762
87,787
25,175
94,311
27,275
+1,~
92,590
26,583
-1,1
-5,279 -4,812 -5,285
Total Federal payments to the public •••••• 107,683 116,774 113,888
_1
-c
-2,f
Excess of cash receipts from or payments to (-)
the public ..•....•...••.••.•••••••.•••.•.••••••
-5,796
-8,343
-4,125
+4,~
NOTE. --Figures are rounded to nearest million and will not necessarily add to total
July
18, 1963
EfI'ecfive with Ulis preliminary statement as of June 30, 1963, certain changes have been made to conform
to the concepts and classlfications in the 1964 Budget Document. The major changes consist 01: (1) the
inclusion of trust fund receipts and expenditures in the summary tables on page 1, and (2) new tables
summarizing Federal Government cash transactions with the public (Table XII), and showing major
intragovernmental and non-cash transactions eliminated from receipts md expenditures with the public
(Table XIII),
United StatCS Trea.sury Depuanenl
fiScal Service
91rUl,I
or . . crount$
PMlimiDal'yl SlalemeDI of
27·-'
Receipts aDd Expenditures of the United Siaies Govel'DDlenl
for the period from July " 1962 through June 30, 1963
(Cent. omatecl, tl..,.fo,. d.le;l. will not .dd to tot.I.)
TABLE I--SUMMARY
(In millions)
Administrative Budget Funds
Fiscal
Year
Net
receipts2
Net
expenditures 2
Surplus (t)
or
deficit (-)
Trust Funds
Net
expend itures3
Net
receipts)
Excess of
receipts or
expenditures( -)
Public Debt
(end of 4
period)
Balance in
account of
Treasurer
(end of period)
~6,
Estimated 1964* ••.... , .
$86,900
$98,802
-$11,903
$29,540
.28,382
158
~315,604
Estimated 1963' •.......
85,500
94,311
-8,811
26,863
27,275
-412
307 ,000
6,200
Actual fiscal year 1963 "
(twelve months)
86,357
92,590
-6,233
27,735
26,583
+1,151
305,860
12,116
Actual fiscal year 1962 •.
81,409
87,787
-6,378
24,325
25,201
-876
298,201
10,430
Actual fiscal year 1961 .,
77,659
81, 515
-3,856
23,807
23,239
+568
288,971
6,694
21,799
-357
286,331
8,005
77, 763
Actual fiscal year 1960 ••
76,539
+1,224
21,442
+~I,
200
TABLE II--SUMMARY OF ADMINISTRATIVE BUDGET AND TRUST FUND RECEIPTS AND EXPENDITURES
FISCAL YEAR 1963
Classification
Fiscal Year 1963
to date
Fiscal Year 1963
estimates
Fiscal Year 1963
to date
Fiscal Year 1963
estimates
RECEIPTS
Internal Revenue. • . . • . . . . . . . . . . . . . . . .
Transfers to trust funds . ........... .
Reit.lbursement from trust funds for
refunds of taxes .'
Refunds of rece tpts
..I
$105,917,424,586
-18,409,556,786
S104, 966,000,000
-18,292,000,000
S18, 409,556,786
518,292,000,000
-268,841,469
-275,000,000
1. 720 .689
415,862
1,440,000
410,000
674,174,364
70,068
94,337,803
3,042,956,228
437,421,000
63 . 000
45,121,000
3,023,029,000
5,164,852
29,171,438
15,789,478,252
78,550,708
31,744,850
3,815,7>15,390
4,742,000
33,347,000
15,765,445,000
76,269,000
33,404,000
3,750,205,000
7,261,447
7,367,000
22,674,522
25,392
19,168
2,151, 664
-720,621,211
8
830,732,862
2,240,561,746
336, 506, 306
119,925,878
685,308,500
22,705,000
Subtotal--Net Internal Revenue ..
Customs .......... .... .
Refunds of receipts . .. .
Subtotal--Customs .
All other .................... .
Refunds of receipts ..
Subtotal- -All othe r .
Interfund transactions . ....
Net receipts ...•...........
EXPENDITURES
Legislative Branch ............... .
The Judiciary .................... .
Executive Office of the President . .. .
Funds appropriated to the President:
Foreign assistance--military .... .
Foreign assistance- -economic . ......... .
Other ... " ...................... .
Agriculture Department . .......... .
Commerce Department . ........... .
Defense Department:
Military [unctions . ..... .
Civil functions ........................ .
Health, Education, and Welfare Department.
Interior Department ..................... .
Justice Department ................... .
Labor Department ....................... .
Post Office Department .................. .
State Department ........................ .
Treasury Department:
Interest On the public debt ......... .
At~~r .......................... .
FederaIEne.r~ CommlSSIOn .............. .
General :eV~~~~~~ 1~~~~ISt~~t i'O'~ : : : : : : : : : : :
Hou.sing and Home Finance Agency . ........ .
NatlOnal Aeronautics and Space Adm ....... .
Veterans Administration ... ............... .
Other independent agencies ............... .
District 01 Columbia ..................... .
Deposit funds ........................... .
Government-sponsored enterprises ....... .
~Iowances, undistributed ................ .
terfund transactions .....................
Net expenditures
................
Administrative budget surplus or deficit (-) .. .
Excess oitrust receipts or expenditures (-) .. .
See footnotes 0Jt page
10
147,200,335
61, 546, 145
23,096,330
158,217,000
65,213.000
24,713,000
1,711,356,122
2,033,582,097
203,461, 307
7,762,835,911
666,827,861
1, 750,000,000
2,100,000,000
508,733,000
7,493,496,000
744,824,000
48,249,117,315
1,128,053,569
4,903,635,970
1,028,179,716
316,706,051
252,839,586
5 755,426,770
404,549,479
46,300,000,000
1, 105,664,000
5,047,540,000
1, 054,000,000
316,805,000
238,715,000
802,461,000
456,620,000
9,891,228,108
1,132,539,290
2,758,196,966
726,349,252
465,191,467
399,781,471
2,552,035,238
5,173,193,640
290,666,062
65,564,800
9,700,000,000
1,111,464,000
2,870,000,000
790,915,000
532,246,000
1,088,396,000
2,400,000,000
5,532,182,000
606,731,000
82,758,000
f-___--=.e±.;'L2:"'!.l~"+_ _ _ _==~==+F====~=~=~~~~9
52,000
2,465,000
250,000,000
871,492,000
2,290,088,000
388,161,000
627,719,000
135,000,000
____..::::==="'_l-----====:..
2
TABLE III--ADMINISTRATIVE BUDGET RECEIPTS AND EXPENDTTU"~S-JUNE' 30,1963
Classification
RECEIPTS
This month
Internal Revenue:
Individual Income taxes:
Withheld· ........................................
Other· ..........................................
?
$3,267,006,745
72,032,196,033
Fiscal Year
1963
to date
Corresponding
month
last year
$3,024,143,518
1,985,427,992
7
138 ,713,567,191
14,268,300,994
Correapondln,
period
fiscal year 196
t38 ,146 ,108
14,403,481
5,009,571,510
52,981,868,186
50,6t9 ,593
5,511,461,232
1,171,024,395
5,377,063,396
1,126,424,437
22,336,132,858
13,410,259,239
21,295,711
12, '152,175
1,288,099,155
49,405,840
2 304,529
1,001,291,484
50,870,165
1,472,869
13,484,378,627
571,806,059
948,464,210
11,686,231
56t,311
457,628
Total employment taxes .........................
1 339 809 525
1 053,634,519
15,004,648,897
12, 'IOIl,171
Estate and gift taxes ................................
185,709,174
165,706,709
2,184,515,405
2,036,18'1
Total internal revenue ..........................
13,507,207,106
12,732,400,573
105,917,424,586
99,440,839
Customs ............................................
95,366,834
99,725,832
1,240,537,892
1,171,2ai
Miscellaneous receipts:
Interest ...........................................
Dividends and other earnings ........................
Realization upon loans and investments ...............
Recoveries and refunds .............................
Royalties ..........................................
Sales of Government property and products .............
Seigniorage ........................................
Other ............................... ·············· .
93,773,459
74,317,256
-1,850,641
64,284,143
9,458,846
86,554,496
4,292,045
43,719,541
276,890,015
70,360,119
7,215,303
18,137,061
58,113,435
46,694,274
3,542,789
32,970,407
757,345,510
859,655,135
1,080,972,519
201,935,205
70,156,530
685,890,958
44,896,025
723,355,987
876,595
743,312
371,112
153,517
121,131
605,181
57,543
277,133
Total miscellaneous receipts ....................
374,549,148
513,923,407
4,424,207,872
3,:Jl5,528
Subtotal gross receipts .........................
13,977,123,088
13,346,049,812
111,582,170,351
103,817,57a
204,682,016
72,000,000
10,000,000
1,400,000
163,019,224
57,409,361
8,346,806
1,305,418
5,386,289,275
768,748,126
91,301,762
19,959,321
5,078,503
773,053
86,742
18,816
129,760
131,ll2
46
4,991
5,299,202,778
Total individual income taxes .. .. . ............. .
..........
Corporation income taxes ..............
Excise taxes ...... .................................
Employment taxes:
Federal Insurance Contributions Act and
Self-Employment Contributions Act· ..............
Railroad Retirement Tax Act ......................
Federal Unemployment Tax Act ....................
Deduct:
8
Refunds of receipts:
Internal revenue:
Applicable to budget accounts:
Individual income taxes .......................
Corporation income taxes .....................
Excise taxes .................................
Estate and gift taxes ..........................
Applicable to trust accounts:
Federal old-age and survivors insurance trust fund
Federal disability insurance trust fund ...........
Highway trust fund ............................
Railroad retirement account. ...................
Unemployment trust fund ......................
?
?
.................. ..................
................. . .................
................. ..................
Subtotal net internal revenue refunds ..........
2,145
418,977
24,327
550,812
127,850,000
11,575,000
126,319,308
109,174
3,097,161
288,503,138
230,655,953
6,535,249,130
6,235,124
29,319
1,225
11,907
Customs ...................... " .................
Other............................................
2,977 ,309
24,389
2,534,573
75,703
35,087,826
700,986
Total refunds of receipts ....................
291,504,837
233,266,229
6,571,037,944
6,265,669
1,198,840,292
7 89,258,863
266,900,000
49,403,694
1,885,552
915,842,964
85,448,520
233,200,000
50,845,837
922,056
12,351,191,002
? 993,762,625
3,278,697,756
571,696,884
945,367,048
10,600,021
944,542
2,948,690
564,264
452,637
Total transfers to trust accounts .................
1,606,288,402
1,286,259,378
18,140,715,317
15,510,156
Interfund transactions:
Interest on loans to Government-owned enterprises ....
Reimbursements .................................
Fees and other charges ...........................
34,581,304
2,819,357
250,000
208,933,651
2,835,273
148,500
499,383,274
13,623,464
390,100
619,768
12,239
628
37,650,662
211,917,425
513,396,839
632,656
Transfers to trust accounts:
•
Federal old -age and survivors insurance trust fund ...
Federal disability insurance trust fund 6 . . • • • • • • • • • • •
Highway trust fund ................................
Railroad retirement account .......................
Unemployment trust fund ..........................
2
Total interfund transactions
....................
?
?
Total deductions ................................
1,935,443,902
1,731,443,033
25,225,150,100
22,408,481
Net administrativ"! budget receipts ................
12,041,679,186
11,614,606,779
86,357,020,251
81,409,092
Senate .............................................
House of Representatives ............................
Architect of the Capitol .............................
Botanic Garden .....................................
Library of Congress ................................
Governmer,' Printing Office:
General fWld appropriations .......................
Revolving fund (net) ...............................
2,478,858
4,136,414
1,442,062
30,489
1,761,223
2,297,154
3,874,184
5,226,762
38,166
2,068,243
29,280,454
53,011,899
33,516,168
455,122
18,263,082
50,322
42,265
449
1,985,765
-711,743
1,289,918
-202,257
19,612,981
-6,939,373
19,401
_2,600
Total--Leglslative Branch .......................
11,123,071
14,592,172
147,200,335
153,:J:M
EXPENDITURES
L egislative Branch:
See footnotes on page 10
26,899
16,58'1
TABLE III··ADMI~STRATIVE BUDGET A(CEIPTS AND EXPENDITURES-- JUNE 30, 1963--Continued
-
-
Classification
This month
EXPENDITUR ES- -Continued
--
he Judiciary:
.
5 reme Court of the Untted States .................. .
c~urt of Customs and Patent Appeals ................ .
:~~~ 21~~~~: :::::::::::::::::::::::::::::::::::
courtsofaPpeals, district courts, and other judicial
services ....................................... .
Total--The Judiciary .......................... .
lecutlve Office of the President:
Compensation of the President ............. .
The White House Ofhce ..................... .
Special projects ............................. .
Executive manSlOn and grounds ..................... .
Bureau of the Budg.et ... : .......................... .
Council of Economic Advisers ...................... .
National Aeronautics and Space Council ............. .
National Security Council . .' ..................... .
Office of Emergency Planning:
Civil defense procurement fund (net) .............. .
Emergency preparedness functions of Federal
agencies 9 • • . • . . . • . . • . . . . . • . . • . . . . • • • • . . • . . . • . .
Other .......................................... .
Office of Scien~e and Technology .................... .
Special representative for trade negotiations ... .
Presidents Advisory Com. on Labor-MgmL Policy ..•.
Viscellaneous .................................... .
Total--Executive Office of the President
mils appropriated to the President:
Disaster relief. ................................... .
Emergency fund for the President ................. .
Expansion of defense production (net) ................ .
Expenses of management improvement .............. .
Peace Corps ...................................... .
International Financial Institutions:
lnvestment in Inter -A merican Development Bank ..... .
Subscription to the International Development Assn ... .
Public works acceleration .......................... .
Transitional grants to Alaska ....................... .
Other ............................................ .
Foreign assistance:
Military:
Office of Secretary of Defense:
Repayment of credit sales 11 . • • • . . • • . • . . .
Other ......................................
Department of the Army ........................
Department of the Navy ........................
Department of the Air Force ....................
Agency for International Development. ...........
All other agencies .............................
.
.
.
.
.
.
Total--Military .. .
Economic:
Defense Department ...........................
Agency for International Development. ..... .
Alliance for progress, development grants ..
lnter-American Cooperation .............. .
Public enterprise funds (net):
Alliance for progress, development loans ......
Development loan funds ......................
A Foreign investment guarantee fund ............
11 other agencies .............................
.
--
$160,907
42,247
78,380
95,807
per~hve state experiment stations service ........ .
t
ConservatIOn Service:
Ffo~ervation operations .......................... .
Gre t pprleventlOn, watershed protection and other ...
a R
alllS conse rv at·IOn p rogr am ...............
COnolll'
atist'lc esearch Service ........................
l
Ica Reporting Service ........................
footnotes on pages 10 and 14
.
.
.
.
--
to date
-
Corresponding
period
fiscal year 1962
--
$201,415
29,994
109,915
101,322
$2,011,523
362,823
902,684
1,026,478
$1,961,569
323,833
887,875
932,896
57,242,636
52,640,523
5,927,727
61,546,145
56,746,697
12,500
181,028
151,710
50,848
448,844
56,296
30,198
76,676
12,500
171,225
150,438
76,412
473,555
65,622
22,757
23,833
150,000
2,501,535
1,039,044
660,258
5,824,795
675,121
393,326
484,917
150,000
2,453,820
1,403,416
717,271
5,303,573
506,450
202,901
502,737
.................
. ...............
. ................
7,240
360,585
520,405
53,798
4,745,850
-3,801,211
4,775,782
6,149,593
463,638
4,745,850
13,024,379
. ...............
................
.................
.................
. .................
. .................
. .................
"-115.295
215
······~~·:86:7i9
1,827,813
1,864,772
23,096,330
29,000,380
1,028,195
-295
-789,319
14,048
2,740,838
2,766,845
5,493
-842,761
30,049
2,519,437
30,802,990
389,345
-56,513,274
127,004
41,381,932
14,592,345
723,334
11,212,055
153,918
11,408,707
33,175
100,077
60,000,000
61,655,825
61,843,808
3,110,295
663,380
. .................
-2,772,798
10,819,065
248,287,150
37,766,596
71,370,546
5,598
1 648 361
-149,824
2,538,958
171,120,169
40,650,012
97,033,530
391,214
518,716__ - -
-46,395,991
123 ,984,411
797,020,965
198,318,439
630,186,133
570,107
7,672,056
-14,571,552
39,172,439
611,139,454
182,479,580
561,452,865
2,975,162
7,383,456
367,124,520
312,102,778
1,711,356,122
1,390,011,406
98,041
72,048,471
3,036,945
11,051,528
136,032
114,112,393
2,929,946
907,975,722
28,218,049
113,519,034
7,390,787
1,126,396,844
• •••••••••• 6 ••••
. ...............
16,040,622
143,078
42,739
10 506
· , . · •• • ••••• 0 •••
. ...............
................
................
25,374,804
-21,682
-17,263
110,000,000
61,655,825
5,944,016
594,717
..................
80,554,810
............
, ...
55,709,932
-324,100
17,259,337
53,514,263
821,447,507
-2,930,625
108,908,198
162,248,205
212,268,400
2,033,582,097
1,836,297,123
529,372,725
524,371,178
3,744,938,219
3,226,308,530
548,592,633
528,983,496
3,948,399,526
3,442,593,451
140,760
15,038,615
110,385
746,454
81,612
-83,983
13,554,413
-116,876
195,392,377
••••••••••• 00.0.
777,270
82,198
136,927
175,449,053
37,992,460
74,548,941
647,845
7,915,337
6,706,464
945,563
686,997
1,098,415
7,252,222
5,896,038
830,384
820,700
69'7,498
93,027,993
79,581,041
9,747,075
9,750,795
10,019,738
Total--Foreign assistance ................ .
!tensIOnCSerVice ................................ ..
arm
lil
oope:ative Service ........................ .
-
1963
5,097,397
- - r----- 2,485,079
Total--Economic ............................ .
er ..' ...•.•...................................
----
Fiscal Year
5,474,740
5,206,252
62,030,144
-317,192
9,094,012
Total--Funds appropriated to the President
Corresponding
month
last year
-
.
.
.
.
ic~lture Department:
gI'ICultural Research Service:
~agovernmental funds (net) ................. .
00
3
-
• •••••••••• 6 ••••••
421,095,822
-1,649,612
202,508,470
• •• 0 •••••••• 0 •••••
70,254,376
641,165
89 , 018, 093
59,019,020
9,041,628
8,190,039
7,680,570
4 TABLE III--ADMINISTRATIVE BUDGET RECEIPTS AND
Classification
EXPENDITURES--Continued
This month
Agriculture Department- -Continued
Agricultural Markettng Service:
Marketing research and service ................... .
Payments to States and possessions ............... .
Special milk program ........................... .
School lunch program .................... , ....... .
Removal of surplus agricultural commodities, ...... .
Intragovernmental funds (net) ..................... .
Other.................. , ........................ .
$2,247,828
31,131
737,516
296,171
16,748,168
2,698
59 998
Total- -Agricultural Marketing Service .... , ...... .
Foreign Agricultural Service ....................... .
Commodity Exchange Authority ...... , ..... , , ....... .
Agricultural Stabilization and Conservation Service:
Expenses, Agricultural Stabilization and
Conservation Service ........................ , .. .
Acreage allotments and marketing quotas .......... .
Sugar act program ................. , ............. .
Agricultural conservation program ... , ............ .
Land-use adjustment program .................... .
Emergency conservation measures ............... .
Soil bank program, .. , .... , ...................... .
Intragovernmental funds (net) ......... , , , ......... .
Foreign assistance programs ....................... .
Commodity Credit Corporation:
PubliC enterprise funds (net):
Price support and related programs and special
milk 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special activities financed by C. C. C."4 ........ .
I
Total- -Commodity Credit Corporation ........... .
Federal Crop Insurance Corporation:
Administrative expenses .........................
Federal Crop Insurance Corporation fund (net) ......
Rural Electrification Administration:
Loans ..........................................
Salaries and expenses ............................
Farmers Home Administration:
Regular loans ...................................
Rural housing grants and loans ....................
Salaries and expenses ............................
Public enterprise funds (net):
Direct loan account ............................
Emergency credit revolving fund ................
Agricultural credit insurance fund ...............
.
.
.
.
.
.
.
I
EXPENOtTUR£S-JUNE 30, 1963--Contln,
Corresponding
month
last year
Fiscal Year
1963
to date
C orrelllClDdbl
period
fiscal year 181
406,884
15,202,512
16,710
59 100
$40,614,848
1,432,763
95,369,634
,169,597,189
L 131,805,115
-5,325
772 565
20,123,513
17,379,235
439,586,790
423 810
1,367,674
83,476
1,919,115
79,195
16,359,740
1,047,961
14,98'1
1,008
$1,677,379
16,648
•• 0 ••••••••••••••
.................
-79,578
8,411,268
111
1,040,896
2,643,407
2,000,000
237,485
-3,128,169
-748 509
267 588;130
.................
128,874
13'1,811
1,,.
..............
188,111
214,112
~
..............
43,884
4,054
11 037 278
178'148'995
87,415,517
88,013
76,929,888
211,194,214
2,000,000
2,701,427
305,657,518
11,550,371
2 234 412 386
..............
8, '/98
16,433,938
-3,591,010
-134,443,353
422 585 110
3,486,356,042
-557 890 211
2,143,132
492 llil
12,842,927
288,141,756
2,928,465,830
2,635,784
-418,289
1,111,922
-1,118,216
648,957
7,848,810
6,657,532
6,119
1,113
24,884,363
466,320
22,128,441
778,337
331,656,082
10,395,781
293,044
..0 ..............
8,281,583
1,842,706
2,619,540
10,846,458
.................
.................
3,604,005
184,203,524
2,651,724
35,690,091
~,18'1
264,19'1
343,888
15~'~
9,931
78,066
106,214
34,139
.
.
.
14,929,287
1,036,487
2,219,112
5,405,386
1,820,032
-3,754,695
58,948,965
7,888,613
13,962,012
35,440
-7,216
Total--Farmers Home Administration ........... .
28,309,177
9,726,453
300,693,206
240,199
.
.
.
.
-158,620
288,475
108,438
-480
106,654
-296,452
298,205
123,388
3,628
83,096
-158,620
3,789,854
1,575,889
58,832
1,149,891
3,610
1,595
.
.
321,729
293,450
293,600
227,381
261,201
3,423,938
3,002
.
.
-66,288
20,982,210
-587,213
30,148 288
740,713
286,431 260
324
265 212
Total- -Agriculture Department ................. .
422,161,887
602,509,563
7,762,835,911
6,668,884
.
.
-300
380,862
796 840
640
-13,273
7,668 893
9941
.
.
.
.
.
.
.
.
.
-46,793
3,251,329
486,958
148,255
2,356,007
288,184
913,912
6,098
160,336
......•••.....••.
360,085
-499,532
30,960,271
3,993,031
1,848,222
19,467,314
3,394,228
10,008,323
6,229
2,897,731
·········i;i1
Total--Economic development .................. .
7,564,289
4,762,892
72,075,819
44,571
2,278,491
2,164,893
2,320,239
1,964,029
24,962,787
26,503,924
~8311
,BIll
434,563
3,943,550
4,263
6 300 548
15,126,311
.•.....•.••••...•
910,288
2,877,388
-3,514,295
44,837,955
1,098,871
85 293 314
179,182,558
Office of Rural Areas Development 15 . . . . . . . . . . . . . . .
Office of General Counsel ..........................
Office of Information ..............................
Centennial observance of Agriculture ................
National Agricultural Library .......................
General administration:
Intragovernmental funds (net) .....................
Other...........................................
Forest Service:
Intragovernmental funds (net) .....................
O~r ..........................................
Commerce Department:
General administration:
Public enterprise funds (net) ......................
Other...........................................
Economic development:
Area Redevelopment Administration:
Public enterprise funds (net) ....................
Other ........................................
Business and Defense Services Administration .....
Office of Business Economics ....................
Bureau of the Census ............................
Office of Field Services ..........................
International activities ...........................
Office of Trade Adjustment .......................
U. S. Travel Service ............................
.
Science and technology:
Coast and GeodetiC Survey .................. , ..... .
Patent Office .................................... .
National Bureau of Standards:
Intragovernmental funds (net) ................... .
Other ........................................ .
Office of Technical Services ...................... .
Weather Bureau ................................. .
Total--Science and technology .................. .
See footnotes on page 14
1,857,886
-72,985
98,316
1,826,495
247,850
445,244
••••••• 0 •••••••••
5 538 074
13,61O,0~
-6,444
-298
40
1,00&
-171
~
-1
'1,340
4,131
1,5411
19,133
3,008
7,841
-'1M
30,48'1
..............
M,At
1~,1i!
TABLE 1II __ ADJVttt.lISTRATIVE BUDGi:-T-RECEIPTS AND EXPENDITURES •• JUNE 30, 1963··Continued
I
~;....
Classification
EXPENDITUR/,S- -Continued
Cor responding
month
last year
This month
C !Deree Department--Continued
°:ransportation:
Inland Waterways Corporation (net) ................
Maritime Administration:
Public enterprise funds (net) ....•...............
Operating-differential subSidies 16 • . • • • • • • • • . . • • •
Other .........................................
Bureau of Public Roads ...........................
Fiscal Year
1963
to date
5
Corresponding
period
fiscal year 1962
$500
-t824,749
-$853,377
-$472,600
5,477,460
10,835,489
3 731 643
-361,240
181,918,752
-165,299.393
4 055 559
10,263,238
5,477,460
349.259,933
43 737 978
-2,700.094
181,918,752
178,909,378
41 700 971
19,571,993
20,314.177
407,913,862
398,975,630
0.
42,643.157
39.484 ,570
666,827,861
594 , 009 . 664
Defense Department:
MilItary functions:
Mllitary personnel:
Department of the Army ........................
Department of the Navy ........................
Department of the Air Force •...................
Defense agencies ...............................
434,712,588
287,162,483
365,824,520
85 175 443
469,168,084
312,496,936
374,231,002
77 371 687
4,299,061,845
3,485,022,296
4,200,040,573
1 010 775 374
4,414,923,000
3,416,856,344
4,305,914,572
894 441 242
1,172,875,035
1,233,267,711
12,994,900,089
13,032,135,160
345,799,765
287,495,936
374,611,351
37,659,792
336,323,083
268,732,943
460,381,124
13,616,836
3,752,953,775
3,020,589,266
4,660,344,400
352 293 573
3,873,027,738
3,052,994,630
4,654,506,150
58 314 219
11,786,181,016
11 ,638, 842,738
•••••
Total--Transportation .. " ......................
Total--Commerce Department
Total--Military personnel
.0
•••••
.00
0
••
0
•••••••
..............
0
•••
Operation and maintenance:
Department of the Armv ........................
Department of the Navy .........................
Department of the Air Force •...................
Defense agencies ..............................
Subtotal
.0'
••••••••••••••••••
0
••••••
0.0
•••••
,i
0
•••
0.0
••••
1. 045,566,846
I
1,079,053,988
I
I
-41 __
096 , 000
---._ ..
1... ...............
-44 J 914 000
Total--Operation and maintenance •...........
1,045,566,846
1,074,957,988
11,786,181,016
11,593,928,738
Procurement:
Department of the Army •......................
Department of the Navy ....................... .
Department of the Air Force •.•................
Defense agenCies ............................. .
162,712,808
932,551,993
807,462,754
1,045,707
161,303,570
556,598,736
887,893,437
. ................
2,320,344,503
6,582,433,281
7,692,519,215
6,733,475
1,815,226,086
5,234,698,248
8,851,320,128
. ....................
Subtotal ................................... .
1,903,773,264
1,605,795,744
16,602,030,476
15,901,244,464
17 • • • • • • • • • • • • • • • • • • • •
-6,082,000
-144,613,000
-339,100,000
-1,369,194,000
Total--Procurement........................ .
1,897,691,264
1,461,182,744
16,262,930,476
14,532,050,464
Research, development, test and evaluation:
Department of the Army •......................
Department of the Navy •............•.........
Department of the Air Force •.........•........
Defense agencies .•.....••.....•.•...•..........
190,089,687
134,188,094
324,027, 546
36,398,711
142,779,652
128,348,626
224,986,338
21,381,695
1,354,411,218
1,429,773,198
3,302,254,130
291,372,827
1,249,654,802
1,298,748,873
2,174,626,134
181,456,883
Subtotal •.•••••.•....•............•....•.....
684 , 704 ,040
517,496,312
6,377,811,375
4,904,486,693
1,414,108,000
17
..
ClassifIcatIOn adjustment ......................
Classification adjustment
I
••••••••••••••••••
1-----
J
-----
- - ..
}
17 • • • • • • • • • • • • • • • • • • • • •
6,082,000
148,709,000
339,100,000
Total--Research, development, test and
evaluation ....•.............................
690,786,040
666,205,312
6,716,911,375
6,318,594,693
Military construction:
Department of the Army •.......................
~Partment of the Navy ........................ .
Department of the Air Force •...................
fense agencies ••........••.......•...........
-6,027,195
19,367,089
69,560,984
1,288,943
12,727,257
16,477,916
87,060,191
1,200,414
178,291,457
195,428,765
739,873,110
27,487,840
206,156,609
189,280,155
897,018,461
54,673,609
Total--Military construction:................. .
84,189,822
117,465,780
1,141,081,174
1,347,128,836
Family housing:
~partment of the Army •.......................
Department of the Navy •........................
Department of the Air Force ....•...............
fense agenCies •.....•....•.•....•............
17,183 ,945
9,371,371
18,021,012
-3,884,191
155,237,180
87,569,504
163,904,689
19,563,821
Total--Family housing ••...•.................
40,692,137
.................
. ................
.................
.................
426,275,196
. ...................
. ...................
. ...................
. ...................
CIvil Defense ...••........•.........•............
6,618,824
13,750,486
201,304,299
90,435,371
Revolving and management funds (net):
Public enterprise funds:
Department of the Army:
g:fense housing........................... .
fense production guarantees •..............
Department of the Navy:
gefense production guarantees. '" •..........
..................
..................
-4,973
-12,133
-241,530
41,688
374,242
Classification adj ustment
Dep~~~'e'n't'~i th~ 'iu.'r· F'o'~c'e'':-'~ie'n's'~'"'' ....
&rOduction guarantees ..........•••....•.....
C fense agencies ........................... .
Ivil defense procurement fund •..•......•.....
footnotes on page 14
..................
1,421
.................
....................
~7i:835
-25,344
-133,134
439,997
49,839
-695,670
-28,186
3,027,624
-87,095
-10,086
1,495,515
-9,678
..................
4.436,029
-3,754 ,241
28,378,038
17,469
...........
,
-41,498
8
TABLE III--ADMINISTRATIVE BUDGET RECEIPTS AND EXPENDITUFrrS ~ 30, 1963--Contl...
~~~~---.-----
-
---
~~---
-.------------~---~--~~-
-
-
---
-
i
Classuication
EXPENDITUR ES- - Continued
--~---
~~~-~-~~-----~-
,
,
---
Defense Department - -Cant inued
Mllitary functions - -Continued
Revoiving and management funds--Continued
Intragovernmental funds:
Department of the Army ................ .
Department of the Navy ......................
Department of the Air Force ..................
Defense agencies ............................
Undistributed stock fund transactions ..........
I
This month
i
I
-'=~::=.r==--='
Corresponding
month
last year
I
i
-2323, 177,201
-521,622,973
6,844,352
-64,176,705
-46,814,723
Total- -Revol ving and management funds ....... . !
i
Total- -Military functions .................. .
I
. .................
I
!
,
-100 487 054 I
3,989,643,569
Correlpondinc
period
fiscal year 196
i
-266,498,895
10,032,076
-32,275,486
-13,698,202
-948.776.401
Fiscal Year
1963
to date
!
I
.
.
.
.
I
4,466,342.969
1
i
-3444,805,167
-786,794,741
8,190,142
-146,703,908
86 048 521
...............
-1 280 466 313
-98 918
48 249,117 315
46 815 354
1,069,671,827
2 242 530
946,163
889
26,720,145
23,523
8,538,985
1 541 498
1,723
10805
-!132,198
64,664
-39,835
-18,972
,
Civil functions:
Army:
Corps of Engineers:
Rivers and harbors and flood control ....... .
Intragovernmental funds (net) .................
The Panama Canal:
Canal Zone Government ......................
Panama Canal Company:
Public enterprise funds (net) ................
Thatcher Ferry Bridge ....................
I,
101,088,721
717 674
.
I
I
I
103,001,992 I
266 305
,
.
.
.
I
I
!
Total- - The Panama Canal ............... . !
Other ........................................ .
Navy--Wildlife conservation, etc .................. .
Air Force--Wildlife conservation, etc ............. .
Total--Civil functions ........................ .
2,319,444
3,282,908
30 478
2,112,8931
I
3,468,711 i
876 188
5,632,832
6,457 793
36 800 629
36053
1,714,835
1,982,457
19,310,374
2 245
2 224
..............29
.................. I . ................
I
I
Total- -Defense Department. .................. .
i
. ................
28 207
16,:~11
109,156,308
111,710,772
1 128 053 569
999 337
4,098,799,877
4,578,053,742
49,377,170884
47 814 692
2,745,109
1,788,189
29,226,811
21,486
Health, Education, and Welfare Department:
Food and Drug Administration ...................... .
Office of Education:
Payments to school districts ..................... .
Ass istance for school construction ................ .
Defense educational activities .................... .
Other........................................... .
Office of Vocational Rehabilitation ................... .
Public Health Service:
Community health:
Hospital construction activities ................. .
Other 'S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environmental health 1 9 . • • • . • • • • • • • • • • . . • • • • . • • • • •
Medical services 18 . . . . . . . . . • . . . . . . . . . . • . . . . . . . . . .
National Institutes of Health ...................... .
Operation of commissaries, narcotic hospitals (net) .. .
Emergency health activities ...................... .
Other........................................... .
18,903,933
7,070,372
14,028,545
1,956,242
2 177 973
26,103,404
5,123,120
12,046,871
1,726,920
2 004 481
276,910,035
66,241,941
198,335,518
82,271,713
97 592 319
226,418
56,490
181,358
78,501
84 713
15,320,117
80,632,645
111,565,342
118,812,388
72,431,210
3,846
21,646
19 -276 092 007
16,385,726
64,378,351
82,784,592
117,250,342
45,082,795
-6,450
214,859
19 -240 189 524
189,116,885
80,632,645
111,565,342
118,812,388
723,463,169
2,885
18,342,646
12 634 002
167,199
64,378
82,764
117,2511
580,761
1
Total--Public Health Service ................... .
122 695 188
85 900 693
1 254 569 965
Saint Elizabeths Hospital ........................... .
Social Security Administration:
Grants to States for public assistance .............. .
Grants for maternal and child welfare ............. .
Operating fund. Bureau of Federal Credit Unions (net)
Other........................................... .
Special institutions:
American Printing House for the Blind ............ .
Freedmen's Hospital. ............................ .
Gallaudet College ................................ .
Howard University ............................... .
Office of the Secretary:
Intragovernmental funds (net) ..................... .
~
1 028 08!
543,151
686,450
7,506,926
7,53C
180,478,210
2,153,574
46,060
5,451,994
190,827,805
1,511,889
22,392
801,045
2,723,677,540
76,057,662
-132,040
61,393,073
2,432,14C
68,25C
.................
. ................
349,034
101,020
683,596
718,707
3,841,683
1,982,968
11,124,374
67(
3,49;
3,16£
7,791
70,137
1 187 739
151,349
1 215 791
141,769
12 174 998
8...6'lt
Total--Health. Education. and Welfare Dept. ..... .
361 250 922
331 044 057
4 903 635 970
421~
Interior Department:
Public Land Management:
Bureau of Land Management ...................... .
Bureau of Indian Affairs:
Public enterprise funds (net):
Revol ving fund for loans ...................... .
4,465,255
3,770,134
113,532,862
97, 'iO!
1,023,482
-222
14,699,674
8,251,702
122,787
387,854
-560
13,027,820
8,324,988
16,867
4,860,967
2,028
191,314,904
109,324,706
969,030
147,851
93,47-
-12,356
2,048,414
-102,119
8,210
123,197
-199,545
22,854
31,008,260
-894,318
22,97'
rn~r
........................................... .
rn~~
...................................... .
Other.. . . . . . . . . . . . . . . . . . . .
. ............. .
National Park Sen-ice ............................ .
Bureau of Outdoor Recreation ..................... .
Office of Territories:
Public enterprise funds (net) .................... .
Other ........................................ .
The Alaska Railroad (net) ........................ .
See footnotes on page 14.
532,144
74,960
1,135,583
I
-1~
7,18!
-341
1,7B!
-I
11
I
_1,48:
TABLE 1II··ADMitilISTRATIVE BUDGti:T RECEIPTS AND EXPENDITURES--JUNE 30, 1963 •• Continued
=-
I
Classification
This month
EXPENDITURES- -Continued
interior Department--Continued
Mineral Resources:
Geological Survey .•.•.••••••••••••••••••••••••••••
Bureau of Mines:
Public enterprise funds (net) •••.•••••••••••••••••
Other ••••••••••• ••••••••••• •••••••••••••••••••
Office of Coal Research •••••••••••••••••••••••••••
Office of Minerals Exploration •••••••••••••••••••••
Office of Oil and Gas ••••••••••••••••••••••••••••••
Office of Minerals and SoUd Fuels ••••••.•••••.•.•••
Fish and Wildlife Service:
Office of Commissioner of Fish and Wildlife .••.•••••
Bureau of Commercial Fisheries:
Public enterprise funds (net) •••••.•••••••••••••.•
Other •••••.••.•.••.•••••••••••••••••••••.•••••
Bureau of Sport Fisheries and Wildlife •••.••••••.•••
Water and Power Development:
Bureau of Reclamation:
Public enterprise funds (net):
Continuing fund for emergency expenses,
Fort Peck project, Montana .................
Upper Colorado River Basin fund •••••••••.•.•••
Other •••••••••••.•••••••••••••••••••••••••••••
Corresponding
month
last year
Fiscal Year
1963
to date
7
Corresponding
period
fiscal year 1962
$4,554,206
$2,935,685
$57,219,084
$49,908,756
235,633
3,136,034
164,604
53,517
42,897
1,067,972
2,806,549
41,099
46,406
39,525
-9,507,974
37,376,674
1,470,232
2,026,225
556,154
955,117
33,824,391
372,787
380,362
510,108
. ................
. .................
. .................
. ..................
42,583
28,738
376,189
348,952
-21,307
2,518,440
5,113,425
50,695
2,000,253
5,224,287
-1,407,276
27,173,496
65,810,996
955,574
23,613,946
54,513,953
29,666
7,981,627
19,165,195
176,282
9,193,303
18,447,388
-996,424
106,298,150
238,655,941
-2,485,338
92,471,149
242,284,413
Total--Bureau of Reclamation •••••••••••••••••
27,176,490
27,816,975
343,957,667
332,270,224
Bonneville Power Administration
Southeastern Power Administration •••••••••••.•••••
Southwestern Power Administration ••••••••••••.•••
Office of Saline Wate r •••••••••••••••••••••••.•.•••
Secretarial Offices:
Office of the Solicitor •••••••••••••••••••••••••••••
Office of the Secretary ••••••••••••••••••••••
Virgin Islands Corporation (net) 0 • • •
2,341,728
27,472
745,000
1,068,401
2,211,248
25,549
404,663
398,571
30,089,088
457,226
6,215,907
8,674,176
29,453,267
361.597
5,639,994
4,113,459
286,339
360,089
131,770
3,676,661
3,320,267
553,620
3,492,647
3,140,591
1,616,892
•••••••••••••••••
0
0
••
0
••
304,945
361,971
104,357
•••••••••••••••••••
78,467,024
71,335,390
1,028,179,716
907,815,893
•••••••••••••
4,849,285
10,483,202
5,531,888
4,988,198
10,254,374
5,116,180
57,851,935
135,527,256
66,322,149
52,202,866
126,482,638
63,216,193
•••••••••••••••••••••••
-117,446
4,842,618
-122,018
4,471,082
-3,197,774
60,202,485
-4,301,667
56,840,825
25,589,549
24,707,818
316,706,051
294,440,857
1,072,634
34,508
1,227,663
-246,005
15,824,861
791,864
14,328,825
217,467
11,379,167
1,026,093
..................
..................
51,783,661
7,086,923
. ..................
7,240,656
. ..................
427,625
413,906
5,290,521
4,694,435
..................
86,411,596
-89,748,149
31,440,113
0
0
Total--Interior Department
0
••••••••• 0
0
•
••••
Justice Department:
Legal activities and general administration ••••••••••••
Federal Bureau of Investigation ••••••••••••••••••••••
Immigration and Naturalization Service.
Federal Prison System:
Federal Prison Industries, Inc. (net) •••••••••••.•••
Other •••..••.•
0
0
•••••••••• 0
-
Total--Justice Department •••••••
0
•••••••••••
0
IIbor Department:
Bureau of Labor statistics •••••••••
Bureau of International Labor Affairs ••••••••••••••.••
Office of Manpower, Automation and Training:
Manpower, development and training .••••••••••••••
Other••••• " •••••••••••••••••••••••••••••••••••••
~ice of Welfare and Pension Plans ••••••••••••••••••
. . ••••••••••••••••
Bureau of Appr ent·Ices h'lp an d T rammg
ureau of Employment Security:
Advances to employment security administration
Pa:account, unemployment trust fund (net) ••••••• " •••
yment to the Federal extended compensation
acCOWIt
0
••••••••••
0
•••• 0
•
..................
665,371
. .................
..................
7,614,516
2,391,879
332,921,543
er ••••.•••••••••••••••••••••••••••••••••••••
19,349,210
91,567
370,424
11,209,773
187,641
202,775
152,858,563
-1,179,036
2,929,901
129,359,488
-366,399
2,478,618
Total--Bureau of Employment Security ••••••••••••
19,811,203
105,626,302
67,253,158
495,833,365
Bureau of Veterans' Reemployment Rights
::au o~ Labor standards ••••••••••••••••••••••••••
Bun au 0 Labor-Management Reports ••••••••••••••••
au of Employees' Compensation:
~Ployees' compensation claims and expenses •••••••
Wome~~s·B~~~····· .. ••• .. • .... • .... ••• ...........
Wage and Hour Di' : •." ..............................
Office of the Soli YlslOn •••••••••••••••••••••••••••••
Office f th
cltor •••••••••••••••••••••••••••••••
o e Secretary ••••••••••••••••••••••••••••••
54,883
350,990
494,896
48,456
238,647
451,761
653,297
4,160,835
5,928,883
606,077
2,973,015
5,143,730
4,206,124
259,837
74,105
1,569,234
411,149
263,513
63,905,913
-58,560,188
842
1,236,350
320,272
206,953
65,265,904
3,894,498
914,056
17,789,304
4,305,966
1,895,846
63,905,913
3,792,201
575,177
15,218,046
3,824,765
1,442,588
Unemploy~;e'n·t· ~~~pe·n·s·;ti~~ 'f~~' F~~~;J 'e'~pi~y~~~"
F and ex-servicemen. •••••••••••••••••••••••••••••
~m }~r supply revolving fund (net) •••••• , •••••••
•
•
•• •
•
•
•
0
•••
Total--Labor Department •••••••••••••••••••••••
41,435,967
115,536,248
252,839,586
619,796,267
POll Office Department:
PaYlllent for publ'IC serVIces
.
Pubr
..........................
Ie enterprise fund (net}--Postal fund ...............
..................
6,200,000
118,734,624
..................
89,262,709
755,426,770
62,700,000
734,176,305
Total--Post Office Department ...................
89,262,709
124,934,624
5755,426,770
796,876,305
Ie footnotes
on pages 10 and 14
8
TABLE III--ADMINISTRATIVE BUDGET RECEIPTS AND EXPEND'TURt:~--JUNt: 30, 1963··Contl,
Classification
EXPENDITUR ES- -Continued
State Department:
Administration of foreign affairs:
Salaries and expenses. , . , . , . , , . , , , . , , , , , , , , , , , , . , ,
Acquisition, operation and maintenance of buildings
abroad ... "" .. , ' , . " . , " " ' , . , ' , ' , " ' .. " ' , ' , '
Intragovernmental funds (net) . ,. . ................ .
Other .......................................... .
Total- -Administration of foreign affairs ......... .
International organizations and conferences:
Contributions to international organizations .........
Loans to the United Nations ....................... .
Other.......................................... .
International commissions ..... , ....... , ........... .
Educational exchange ............................. .
Other............................................ .
I
Total- -State Department ............. , ......... .
Treasury Department:
Office of the Secretary:
Public enterprise funds (net):
Reconstruction Finance Corp. liquidation fund .... .
Federal Farm Mortgage Corp. liquidation fund .. .
Civil defense program fund ................... , ..
Intragovernmental funds (net) ..................... .
Other.... , ...................................... .
Bureau of Accounts:
Interest on uninvested funds ...................... .
Claims, judgments and relief acts .............. .
Government losses in shipment fund (net) .......... .
Salaries and expenses ............................ .
Other......................................... .
Bureau of the Public Debt .......................... .
Office of the Treasurer:
Check forgery insurance fund (net) ............... .
Other.......................................... .
Bureau of Customs:
Intragovernmental funds (net) .................... .
Other ........................................ , , , ,
Internal Revenue Service:
Interest on refunds of taxes. , ........... , , ....... , .
Payments to Puerto Rico for taxes collected ........ .
Salaries and expenses ............................ .
Bureau of Narcotics ............................... .
United States Secret Service ........................ .
Bureau of the Mint ................................. .
Bureau of Engraving and Printing:
Intragovernmental funds (net) ..................... .
Fiscal Year
Corresponding
month
last year
This month
-eS, 108,876
-!11, 993,540
4,944,789
56,375
298 128
-2,809,583
1963
to date
Correlpoadlnt
period
fiscal year lea
!149, 910,238
U22,113
1,109,248
165,177
292 972
12,409,590
-1,453,476
3 084 078
17,048
-10,426,141
163,950,431
143,3f7
327,615
589,319
1,022,240
8,221,131
146,390
94,552,610
72,069,922
4,230,996
15,974,676
44,913,381
8,857,461
11,073,782
-119,444
404,549,479
306,583
-59,170
-135,740
-5,974
94
341,985
-434,981
-274,566
-7,808
13,828
330,864
-3,126,652
-532,962
-135,176
-1,462
4,624,859
-1,3a!
-274
-137
97,819
2,046,511
9,098
3,944,024
98,849
398,892
186
1,264,552
10,356
43,141
67
28,145
1,821,673
6,854,C82
720,568
347,115
2,942,456
1,197,469
" 1
. .................
4.~t
93,819
...............
4,337
12,523
48,311
4 173
4,196
..................
. .................
4,408,663
3,214,235
10,917,390
26,247,763
536,494
31,935,391
358
48,786,560
1,433
1,278,215
1,247
1,219,234
-2,066
16,111,271
15,710
109,921
5,417,468
214,834
4,870,219
. .................
. ............. .
6,224,958
4,504,347
40,320,754
372,383
644,674
484,186
5,085,544
1,748,845
35,705,567
348,418
530,017
428,580
73,851,878
44,779,917
497,273,385
4,659,036
7,540,322
7,534,064
67,aoe
29,776
443,134
.......................................... .
-139,747
64
.
.
I
I
67,355,768
.." .... '4'i;i46
62,698
4,35~
6,7~
7,311
18,247
21,243
-2,272,330
43,343
644
458,801
21,471,370
626,366
28 378,692
-2,199,121
298,611 ,256
283,55~
.
.
723,742,827
137 215 394
693,595,465
127 839 774
8,600,196,235
1 291 031 873
7,857,631
1 262 12f
=, ............. .
860,958,222
821,435,239
9,891,228,108
9,119,751
Total--Treasury Department ................... .
952,754,367
905,236,352
11,023,767,398
10,173,001,
Atomic Energy Commission .......................... .
241,574,450
249,431,355
2,758,196,966
2,805,63(
Federal Aviation Agency:
Grants-in-aid for airports .......................... .
Other............................................. .
2,991,692
55,100,956
1,012,941
63,467,929
24,740,393
701,608,859
Total--Federal Aviation Agency ................. .
58,092,649
64,480,871
726,349,252
698,401
13,691,677
4,626,416
18,868,599
7,833,527
8,046,769
4,510,689
17,660,589
5,568,430
91,778,833
62,384,872
2,452,008
235,657,063
71,33
59,46
-16,23
204,81
-4,376,411
2,440,802
707,962
1,027,935
354,955
9,621,110
1,678,125
808,240
1,014,585
498,140
-18,015,305
40,222,395
9,695,859
14,395,838
4,647,182
32,11
33,24
119
-8
m~~
Coast Guard:
Intragovernmental funds (net) ... , .................
Other..... , ........................ , ........ , ...
Interest on the public debt:
Public issues ............... , ...................
Special issues ...................................
Total--Interest on the public debt
General Services Adm inistration:
Real property activities:
Construction, public buildings projects ............ .
Repair and improvement of public buildings ........ .
Intragovernmental funds (net) ..................... .
Other........................................... .
Personal property activities:
Intragovernmental funds (net) ..................... .
Other........................................... .
Utilization and disposal activities ................... .
Records activities ................................. .
Transportation and communications activities ........ .
Defense materials activities:
Public enterprise funds (net) ...................... .
Intragovernmental funds (net) ..................... .
Strategic and critical materials ................... .
General activities:
Public enterprise funds (net) ...................... .
Intragovernmental funds (net) ..................... .
Other........................................... .
Total--General Services Administration ........... .
See footnotes on page 14.
..................
I
-2C
291
8,56
13,95
3,4!i
405,030
909,826
..................
3,139,683
30
-864,746
21,962,469
33,63
-2,283
1,572,817
136,045
-602
1,363,942
125,324
-168,488
-565,217
1,608,670
..3Z
1,50
48,196,902
54,035,151
465,191,467
-19
TABLE 1II··ADMfNISTRATIVE IiilUDC~T l=IECEIPTS AND EXPENDITURES··JUNE 30, 1963--Continued
9
~
_~~~================================~r====,===c-==c=~==r==r=~~~~====~==~======~=====r==============
Classification
This month
EXPENDITURES--Continued
Corresponding
month
last year
Fiscal Year
1963
to date
-
Corresponding
period
fiscal year 1962
Housing and Home Finance Agency:
Office of the Admlllistrator:
Public enterprise funds (net):
College housing loans .......................... .
Liquidating programs .......................... .
Urban renewal fund ............................ .
Other ........................................ .
Open-space land grants 2 J • • . . . . . . . . . . . . . . . . . . . . . . .
Other .......................................... .
$15,276,108
-200,659
-6,898,427
1,726,969
265,013
1 654 721
$41,451,242
-191,669
33,356,596
1,484,203
110,000
2 093 351
$283,573,515
-2,014,934
173,208,174
53,608,487
265,013
27 180 078
$227,341,207
-5,650,957
226,948,690
30,484,377
110,000
19 399 954
Total--Office of the Administrator ................ .
11,823,726
78,303,724
535,820,334
498,633,272
Federal National Mortgage Association (net):
Loans for secondary market operations ............ .
Management and liquidating functions fund ......... .
Special assistance functions fund .................. .
-34,994,456
-40,014,140
-20,820,000
-13,691,207
-30,687,213
...................
-186,664,280
-262,295,979
....................
-176,913,644
53 559 017
Total--Federal National Mortgage Association ... .
-75,008,597
-65,198,420
-448,960,259
-123,354,626
Federal Housing Administration (net). . . . . . . . . . . . . . . . .
Public Housing Administration (net) . . . . . . . . . . . . . . . . . .
18,471,122
20,475,422
-126,392
9,159,216
134,053,960
178,867,436
199,218,224
164,830,101
399,781,471
739,326,971
Total--Housing and Home Finance Agency .......... 1r====-=2=4~,2=3,,;8,.;,~32~59===~2;:;2~',::13;;8;;,~1;;289===~~~~~t====~~~~~
National Aeronautics and Space Administration ..........
2,552,035,238
1,257,047,821
~===~2;;99~,3;,4~1~';,02;;9~===,.,;1~42~,06~7~,;:;8~899==~~~~~~t===~~~;;;:~~
I,
Veterans Administration:
Compensation, pens ions, and benefit programs ....... .
Public enterprise funds (net):
Direct loans to veterans and reserves ............. .
Loan guaranty revolving fund ..................... .
Other .......................................... .
Other ............................................ .
Total--Veterans Administration.................. .
Other independent agencies:
Advisory Commission on Intergovernmental Relations .. .
Aiaskalnternational Rail and Highway Commission ..... .
American Battle Monuments Commission ............ .
Centrallntelligence Agency-construction ............ .
Civil Aeronaut ics Board:
Payments to air carriers ......................... ,
Other .......................................... ,
Civil Service Commission:
Payment to Civil Service retirement and disability
fund .....•....•...........•.•..•.•...........•.
Government payment for annuitants, employees
health benefits fund ............................. .
Government contribution, retired employees health
benefits fund ................................... .
Other ...........................................
336,166,491
328,273,782
4,001,013,694
3,898,002,351
-34,625,381
-18,127 ,838
-3,782,296
104,489,800
-5,964,727
-22,924,122
-2,711,775
100,999,109
-86,178,301
-22,920,867
-20,836,268
1,302,115,383
92,773,690
143,521,637
14,500,848
1,242,793,745
384,120,774
397,672,266
5,173,193,640
5,391,592,273
24,557
-640
115,159
19,579
26,446
145,274
402,059
411,295
-640
1,826,041
1,722,058
277,131
4,437
1,833,223
7,497,369
6,695,229
755,956
82,423,051
-74,410,635
81,856,762
9,374,166
82,423,051
8,372,524
30,000,000
44,637,000
6,789,000
2,877,000
13,200,000
13,800,000
24,160,316
23,695,909
= ______~2~,04~9~,~32~8~--------~1~,~66~2~,~8~39~------~~~~~+_------~~~~~
r'
Total--Civil Service Commission ............... .
2,049,328
1,662,839
73,684,909
85,474,316
Commission of Fine Arts ........................... .
CommiSSion on Civil Rights ........................ .
Commission on International Rules of Judicial
Procedure ...................................... .
Ellport-lmport Bank of Washington (net) ............. .
Farm Credit Administration:
Public enterprise funds (net):
Federal Farm Mortgage Corporation fund •........
Short-term credit investment fund 24 • • • • • • • • • • • • •
Banks for cooperatives investment fund .......... .
6,482
62,337
6,138
74,194
82,208
1,044,799
67,937
744,309
2,530
-26,733,725
2,530
-391,550,110
....................
-6,778,575
.. , ................
101,086,544
...... . . . . . . . . . . . .
. ..................
1,400,000
2,200,000
................... ...................
13,310,000
-11 979 500
-692,966
3,535,000
-11 469 900
Total--Public enterprise funds ............... .
2,200,000
1,400,000
1,330,500
-8,627,866
Administrative expenses ......................... .
206,242
186,164
2,567,229
2,453,189
Total--Farm Credit Administration ........... .
2,406,242
1,586,164
3,897,729
-6,174,676
Federal Coal Mine Safety Board of Review ........... .
Federal Comm umca
. t·IOns C ommlsslon
. . ............... .
Federal Home Loan Bank Board (net):
Federal Savings and Loan Insurance Corp. fund .... .
F~her .......................................... .
e
Federal Maritime Commission ..................... .
Fed:~:l ~wdeiarticon and. C~nciliation Service .......... .
Federal Trade C ommlSSlon ........................ .
F
ommlSSlOn ........................ .
~reign Claims Settlement Commission ............. .
. nter~l Accounting Office .......................... .
8IS oncal and m emona
. I commissIOns
..
Ind'
............... .
llln Claims Commission ......................... .
Int
erstate
Comm
C
.
.
Nar I
erce ommlsslOn .................. .
Nat~ona Capital HOUSing Authority .................. .
lIat~Onal Capital Planning Comm iss ion ............... .
lIat~Onal Capital Transportation Agency .............. .
Nallonal Labor Relations Board ..................... .
·onal Mediation Board .......................... .
NatIOnal SCie
~td
nce F ound a t·IOn ...............•.........
. Oor Recreation Resources Review Commission ....
RallrOad Retirement Boerti-. I , • I • , t. I t ' I I I , I I I I I I 1..- •
4,974
1,116,328
4,409
1,143,805
59,037
14,087,914
58,107
13,370,522
-81,741,397
58,242
203,175
392,332
927,358
956,542
79,653
3,361,755
15,311
14,248
1,962,941
6,817
54,098
119,282
1,650,213
158,857
27,952,166
153
-80,258,371
208,487
122,345
366,257
706,988
821,811
68,075
3,235,478
9,020
22,546
2,510,501
5,785
40,618
83,626
1,527,217
110,384
19,068,041
32,247
-263,543,229
-118,225
2,142,003
5,051,874
10,711,362
11,515,602
797,723
42,293,873
99,736
268,950
23,520,262
42,626
1,881,960
2,321,302
20,945,017
1,811,720
206,373,914
87,566
-236,282,970
-505,206
1,162,867
4,479,089
8,786,400
9,561,623
613,260
41,039,214
107,758
239,911
36,646,457
41 ,384
534,538
825,875
18,622,991
1,813,146
182,689,007
663,941
7,000,000
..................
.................
................
10
TABLE III--ADMINISTRATIVE BUDGET RECEIPTS AND EXPENDlTU~ES-- JUNE .J,). 1963--Contlnu.
Classification
EXPENDITURES- -Continued
other independent agencles--Continued
ParUclpatlon in Interstate Federal Commissions:
Delaware River Basin Commission •••••••••••••••..
Interstate Commission on the Potomac River Basin •.
President's Adv. Com. on Labor-Mgmt. Pollcy ••••••••
RenetoUaUon Board •••.••.••••••.••••••••••••••••••
Saint Lawrence Seaway Development Corporation (net) ••
Securities and Exchange Commission •••••.•••••••••••
Selective Service System ••••••••••••••••••••••••••••
Small Business Administration:
Public enterprise funds (net) •••••••••••••••••••••••
Salaries and expenses •••••••••••••••••••••••••••••
Other •••.•••••••••••••••••••••••••••••••.•••••••
ThlB month
Corresponding
month
last year
$2,640
.................
.................
.................
120,365
$108,051
FlBcal Year
1963
to date
:c
COl're
d1Dc
.r,r ad
flac year 1962
..................
.5,1K
199,553
149,104
1,039,052
2,896,944
175,317
206,185
918,172
2,948,190
U29,879
5,000
120,365
2,325,170
1,436,609
13,206,713
34 488 815
17,111,900
2,470,140
133,917
33,063,503
1,574,188
60,771
134,359,762
4,849,784
149,664
222,778,2(
6,824,8t
343 O~
Total--Small Business Administration ••••••••••••
19,715,958
34,698,464
139,359,210
229,943,98
Smithsonian Institution •••••••••••••••••••••• , •••••••
Subversive Activities Control Board ••••••••••••••••••
Tariff Commission •••••••••••••••••••••••••••••••••
Tax Court of the United States •••••••••••••••••••••••
Tennessee Valley Authority (net) •••••••••••••••••••••
U. S. Arms Control and Disarmament Agency ••••••••••
United States Information Agency:
Informational media guarantee fund (net) ••••••••••••
Salaries and expenses •••••••••••••••••••••••••••••
Radio construction ••••••••••••••••••••••••••••••••
Other •••••••••••••••••••••••••••••••••••••••••••
1,468,889
25,489
219,319
144,615
5,266,484
200,718
2,236,806
28,182
201,734
146,496
11,173,419
263 916
20,251,370
337,737
2,767,325
1,769,637
53,596,288
2 333 442
25,511,91
331,22
2,641,31
1,682,00
102,969,07
1 032 62
-152,587
15,483,517
1,267,816
653,424
55,584
21,293,688
749,654
1,034,182
1,849,612
131,044,208
14,742,895
7,424,091
1,382,71
119,801,48
16,300,41
10 984 69
Total--U. S. Information Agency •••••••••••••••••
17,252,170
23,133,110
155,060,808
148469 28
United States Study Commissions •••••••••••••••••••••
19,442
77,966
774,947
1 755 91
Total--Other independent agencies •••••••••••••••
-8,583,154
31,282,250
290,666,062
936,737,36
District of Columbia:
Federal payment to District of Columbia ••••••••••••••
Advances for general expenses (repayable) ••••••••••••
Loans to District of Columbia for capital outlay ••••••••
Loans to District of Columbia (stadium fund) •••••••••••
.................
10,000,000
................
3,000,000
.................
1,250,000
5,150,000
415,800
33,199,000
7,000,000
24,950,000
415,800
32,753,00
-5,000,00
44,250,00
415,80
Interfund transactions (-) (See detall on page 2)2 ••••••••••
-37 650 662
-211 917 425
-513 396 839
-632 656 41
lOS, Of
2,591,43
535,81
10, 987, 8t
3509734
Net administrative budget expenditures ••••••••••••••
7 662 561 169
8 101 847 379
92 589,764 029
87 7861 766 56
Administrative budget surplus (+) or deficit (-) ••••••••••
+4,379,118,016
+3,512,759,399
-6,232,743,778
-6,377,674,50
FOOTNOTES
S"urce:
Prepared by the United States Treasury Department on the
basis of reports received from disbursing. collecting. and
*
administrative agencies of the Government.
1 From 1964 Budget Document released January 17, 1963.
This statement is preliminary and is based on reports from
disburSing, collecting, and administrative agencies of the Government
received through July 12, 1963. Final reports of G:)Vernment disbursing, collecting, and administrative agencies, inCluding certain
overseas transactions for the year ended June 30, 1963, which it has
not been possible to i!1:1ude in this statement, wi~l be incorporated
in t(1e final statement to be published at a later date.
• Beginning with the Monthly Statement for July 1960, and incorporated in the final statement for the fiscal year 1960 (released
December 6, 1960), totals shown for net budget receipts and budget
expenditures exclude certain interfund transactions which are included in the detail of both budget receipts and budget expenditures.
The transactions deducted consist mainly of interest payments to the
Treasury by Government corporations and agencies tha t borrow from
the Treasury. This reporting change does not affect the budget sur?lus or deficit. The inter:und transactions deducted under this
procedure do not include payments to the Trea5ury by wholly owned
Gover:lment corporations for retirement of their capital stock and ror
disposition of earnings. These capital transfers have been excluded
froC" budget receipts and expenditures since July I, 1948 •
.J Totals
shown for trust receipts and trust expenditures exclude
certain intertrust fund transactions which are included in the detail
of both trust receipts and trust expenditures. The transactions deducted consist mainly of financial interchanges between trust funds
resulting in receipts and expenditures.
4 Includes debt not subject to limitation, which 0" June 30, 1963
amounted to $367,743,327. The statut"ry debt limitations in effect
during the period covered by this table and the date when each became
effective are as follows: $295 billion on July 1,1959; $293 billion on
July I, 1960; $298 billion on July 1, 1961; $300 billion on March
1962; $308 billion from July I, 1962 through March 31,1963; $:
billion from April 1 through May 28, 1963; $307 billion from May
through June 30, 1963, and $309 billion from July 1, 1963 to Aug.
31, 1963.
5 Transactions cover the period July 1, 1962 through June
1963, and are partially estimated.
6 Distribution between income taxes and employment taxes rna
in accordance with provisions of Sec. 201 of the Social Security J
as amended for transfer to the Federal Old-Age and Survive
Insurance Trust Fund and the Federal Disability Insurance Tr'
Fund.
7 "Individual
income taxes
withheld" have been decrea!
$8,409,287 to correct estimates for quarter ending September
1962 and prior, and "Individual income taxes other" have been
creased $58,310,131 to correct estimates for calendar year 19
1960 and prior. The total of the above adjustments ($49,900,844)
shown as a decrease of employment taxes under "Federal Insurar
Contributions Act and Self-Employment Contributions Act" rep'
senting decreases in appropriations of $47,159,707 for the Fede
Old-Age and Survivors Insurance Trust Fund and $2,741,136 for
Federal Disability Insurance Trust Fund.
S Beginning with t':le statement for January 1962, amounts rep'
senting refunds of principal for overpayment of taxes forme
reported net of reimbursements from trust fund accounts are r.
shown on a gross basis. These reimbursements to Internal Revel
Service for refunds are now included and netted with amounts she
for transfers to the respective trust fund accounts. The distribut
of amount" by type of tax applicable to budget accounts for the mO
of June is estimated.
Footnotes continued on page
11
TABLE "' .... T~U~T RECEIPTS AND EXPENDITURES--JUNE 30,1963
Classification
RECEIPTS
e~slative Branch:
payments from general fund .........................
Other ............................................
'lie Judiciary:
.
Judicial survivors annUity fund:
Contributions ...................................
IDIerest on investments ...........................
IUIIIs appropriated to the Pres ident. ...................
Jiculture Department:
Food stamps issued:
Payments from general fund ......................
Receipts from sales ..............................
Other .............................................
bDlDlerce Department:
8lghway trust fund:
Transfers from general fund receipts ..............
Less refunds of taxes ...........................
Interest on investments ...........................
This month
Corresponding
month
last year
I
Fiscal Year
1963
to date
Corresponding
period
fiscal year 1962
$89,360
88,092
~89 ,264
146,231
$179,429
1,450,768
079,326
1,262,696
49,100
1,519
209,890,464
97,260
2,209
50,702,853
595,159
62,941
952,849,848
553,569
59,870
356,351,737
2,317,457
3,640,033
3 882 769
1,082,052
1,935,746
4 626 783
18,639,870
31,029,477
50 440 219
13,152,663
21,835,468
46 335 023
. ................
233,200,000
4,228,156
3,405,017,064
-126,319,308
14,268,227
3,079,993,030
-131,302,902
6,772,167
266,900,000
..................
7,941,213
Total--Highway trust fund .......................
274,841,213
237,428,156
3,292,965,983
2,955,462,295
otber .............................................
!elease Department:
Military functions ..................................
Civil functions:
Payments from general fund .......................
Other ...........................................
Iealth, Education, and Welfare Department:
Federal old-age and sur vi vors insurance trust fund:
Transfers from general fund receipts:
Appropriated ..................................
Unappropriated ................................
Less refunds of taxe s ...........................
Deposits by States ................................
Interest and profits on investments .................
Other ...........................................
623,929
847,622
28,270,369
11,076,203
400,051
1,346,572
5,896,607
5,051,986
········3:652·969
.................
2,956,696
34 294 472
2,848,975
24 441 196
1,187,840,292
11,000,000
933,842,964
-18,000,000
10,714,781,548
15,000,000
-129,760,000
869,621,102
539,048,987
2,275,195
Total--Federal old-age and survivors insurance
trust fund ....................................
2 640 246
. ...............
-3,609,539
180,952,669
9,205
-2,677,833
195,623,715
9,552
12,466,041,002
13,000,000
-127,850,000
989,443,680
512,407,651
2,490,064
1,376,192,627
1,108,798,398
13,855,532,399
12,010,966,833
90,258,863
-1,000,000
87,448,520
-2,000,000
1,006,337,625
-1,000,000
-11,575,000
81,849,041
955,449,632
1,000,000
-11,907,500
77,323,679
.............. ..................
~
Federal disability insurance trust fund:
Transfers from general fund receipts:
Appropriated ..................................
Unappropriated ................................
Less refunds of taxes ...........................
Deposits by States ................................
Payments from railroad retirement ac count. ..•.••••
Interest and profits on investments .................
.................
. ...............
.................
. ...............
30,995,062
. ...............
. .................
30,206,257
69,635,323
69,956,452
Total--Federal disability insurance trust fund .....
123,429,797
120,460,598
1,145,246,990
1,091,822,265
Other .............................................
!erior Department:
Indian tribal funds ..................................
Payments from general fund ........................
~her .............................................
r Department:
Unemployment trust fund:
Employment security administration account:
Transfers (Federal unemployment taxes):
Appropriated ................................
Unappropriated ..............................
AdLess refunds of taxes ........................
vances from general (revolving) fund ...........
S Less return of advances to the general fund .....
R~\e accounts--deposits by States .................
al road unemployment insurance account:
Deposits by Railroad Retirement Board ...........
Advances from railroad retirement account .......
R~dvances from general fund .....................
~ road unemployment insurance adm. fund:
Fe/POSits by Railroad Retirement Board ...........
/ral extended compensation account:
Int dvances from general fund .....................
erest and profits on investments .................
11,568
101,700
541,427
511,919
................
4,331,204
4,384
790,283
46,504,015
22,629,290
11,322,813
40,200,389
40,430,636
14,435,441
2,586,000
-281,470
-418,977
2,474,000
-1,001,131
-550,812
86,411,596
23,556,124
948,338,550
125,659
-3,097,161
169,000,000
-255,411,596
3,008,217,954
457,257,583
371,403
-4,991,080
320,311,596
-285,400,000
2,728,617,229
37,699,000
3,964,676
2,987,972
1,248,578
................
................
19,298,485
4,017,015
.................
31,685,606
149~ 797,384
................
................
.................
................
147,111,229
101,470,000
7,000,000
1,445,467
1,667,556
7,883,840
8,148,065
................
61,716,442
7,614,516
58,803,993
2,391,879
191,107,356
332,921,543
172,554,614
Total--Unemployment trust fund .................
111,810,057
210,661,450
4,256,052,867
3,985,372,184
~h~~p~~i~~~t; ....................................
2,803
1,471
38,738
71,634
276,867
265,428
-2,235,470
319,369
3,270,286
3,108,404
3,212,793
2,852,868
33,776
1,331,087
2,170
1,453,304
2,609,709
1,267,306
86,901
1,477,919
336,127
1,461,309
108,400
16,420,168
2,835,738
1,368,766
372,093
15,840,139
orelgn
. . . fund:
Oed Se"
. rVlce rehrement and dlsablltty
ElD~ctlOns from salaries and other receipts ........
Reee'oymg
I agency c on t'b
n u t'IOns ....................
disa?IS from Civil Service retirement and
Inter Illy
I fund
.
.. ................................
er es on lDvestments ...........................
y'D~p~~i~~~t: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :
27,464,109
.................
14
TABLE IV--TRUST RECEIPTS AND EXPENDITURES--JU'IQE ~.1909 CoAtfnued
=-=-=-=::.;....
c _
-------=-
~-:.:;-...-:~~----..:.:...
Classtiication
EXPENDITURES- - Continued
Corresponding
month
last year
This month
Other Independent agencies:
Civil Service Commission:
Civil service retirement and disability fund .........
Employees health benefits fund (net) ................
Employees life insurance fund (net) .................
Retired employees health benefits fund (net) .........
.................
Housing Authority (net) ..............
Total- -Civil Service Commission
National Capital
Railroad Retirement Board:
Railroad retirement account:
Administrative expenses ........................
Benefit payments, etc ................ " ... , .....
Payment to Federal old-age and survivors and
disability insurance trust funds ................
Advances to railroad unemployment insurance
account ...•.••.•.••...•....•........••.......
Interest on refunds of taxes ......................
$121,700,874
3,375,103
760,575
1,091,434
$91,752,164
-2,279,871
-23,499,025
1,146,962
Fiscal Year
1963
to date
CorrelpondiDt
period
filcal year 191
fl,175,952,822
-12,326,185
.32,221,621
-142,755
126 927 988
67 120 230
1 131 262 259
203.814
-416,801
.2,354,674
81,057,84:
-10,814
-70 ...
-8(
,
9'184&
11;
I
I
954,888
90,160,016
1,053,582
87,664,964
9,659,231
1,064,000,824
..................
..................
. .................
. ..................
. .................
...............
4,368
37,699,000
616
101,471
3
9,22:
1,023.9t'
.
Total--Railroad Retirement Board ...........
Other:
Trust enterprise funds (net) .......................
Other .......................••...................
District of Columbia .•................................
Deposit fund accounts (net) ............................
91 114 907
88 722 915
1 111 359 672
1 134 114<,
10,892
19,793
29,570,114
.79,550,405
-12,029
18,319
33,621,733
60,870,818
7,756
286,732
336,506,306
119,925,878
333.511
-543.'lJo
.........
2,742,192,184
2,612,504,026
26,402,818,315
24 610 631
Subtotal trust and deposit fund expenditures
-Ii
181
25
Government-sponsored enterprises (net):
Farm Credit Administration:
Banks for cooperatives ............................
Federal intermediate credit banks ..................
Federal land banks
Federal Home Loan ~ ·:&;~;d:······················
Home loan banks .................................
Federal Deposit Insurance Corporation ... , ...........
29,289,000
276,904,000
176,421,500
50,500,000
129,191,400
194,506,400
29,289,000
276,904,000
176,421,500
50,50'
129,19
194,50
363,240,000
.160,546,000
872,105,000
-154,300,000
363,240,000
-160,546,000
872,1()
-154,30
...........
685,308,500
1,092,002,800
685,308,500
1,092,00
Interfund transactions (-) (See detail on page 12) 3 • • • • • • • • •
-452,208,407
-386,445,891
-504,847,205
-527,79
2,975,292,276
3,318,060,934
26,583,279,609
25,174,84:
-3,708,811
-743,296,329
+1,151,299,155
-850,07
Total Government-sponsored enterprises
Net trust and other expenditures
•••
0
•••••
•
•••••••••••••
Excess of trust and other receipts (.. ) or expenditures(-) .•
Continued from page 10.
FOOTNOTES
Formerly included under Other.
Represents adjustment to ~eclassify transactions to Other independent agencies.
11 Represents net cash transactions under provisions of Sec. l (a)
(3) of Public Law 85-141, approved August 14, 1957.
12 Includes $18,639,870 transferred to Agriculture Department,
Food Stamp Program (Sec. 3l of the Act of August l4, 1935, as
amended, 7 USC 61l). See page 11.
13 Represents residual of gross receipts and expenditures after
reduction for certain costs which are included in amounts shown for
special activities.
14 Includes certain costs transferred from price support operations
for which expenditures may have been made in prior years, in addition to adjustments for prior months 1 transactions.
15 Amounts represent adjustments to reclassify transactions formerly included under General administration, Intragoverrunentalfunds.
16 Amounts represent adjustments to reclassify transactions formerly included under Maritime Administration, Other.
17 Represents estimated adjustments to reclassify expenditures for
comparability with the latest budget appropriation structure. These
adjustments are made between the major categories of expenditures
and, therefore, do not affect the total expenditures for military
functions. Amounts shown for the respective Departm.ents represent
the expenditures as recorded in books of account of the Departments
and do not include any adjustments for comparability.
18 See footnote 19.
19 Amounts include adjustm.ent to reclassify transactions to the
respective line items. Public Health Service: Community health,
Environmental health, and Medical services.
20 Includes Temporary unemployment compensation.
21 Gives effect to reimbursements co1lected for administrative
support furnished to other agencies amounting to approximately
$71,946,039.
22 Expenditures are stated on an accrual basis.
23 Formerly included under Office of Administrator, Other.
9
10
24 In accordance with Public Law 87.343, October 3, 1'16
investment funds for Federal intermediate credit banks and Pr
tien credit associations are combined in "Short term credit il
ment fund. 11
25 Formerly shown as deposit funds. Amounts for the C\
month of June, and corresponding month last year, include a'
ments representing reclassification of prior months' transac
26 Includes investments in amount of $1l,'143,900 for the Ma
ment and Liquidating functions fund and sales in amount of $35,2
for the Special Assistance functions fund.
27 The security transactions of Government- sponsored enter}
formerly included in deposit fund accounts (net) are now sh'
net sales or investments in public debt and agency securities a
sales or redemptions of Goverrunent agency securities in the m
Amounts for current month of June and corresponding mon'
year include adjustments representing reclassification of
months' transactions. Details of these transactions by indi
enterprise were shown in previous publications as Memor
sections for each of the security tables.
28 See footnote l7.
29 Further breakdown of this cia ssification is not available i
for publication in this statement.'
30 Beginning with the statementfor November 1961 and incorp
in the final statement for fiscal year 1961, the increase or de.
in interest checks outstanding. coupons outstanding, and iI:
payable with principal, are reported in the preceding line cla ••
tion.
31 Represents changes in cash on hand, in banks held outti
Treasurer's account, deposits in transit and cash payment. I
covered by vouchers processed through accounts.
32 Amounts shown for individual classifications are net of r
of taxes. For gross amounts of administrative budget rece;
eluding Internal Revenue and also Trust fund receipts see Ta
p. Z and Table IV p. 11.
33 See footnote l7.
JUNE 30,1963
TABLE V--INVESTMENTS IN PUBLIC DEBT AND AGENCY SECURITIES (NET)
15
~==================~======~========r=====~r=======
Classification
This month
-
public enterprise funds:
Commerce Department:
Federal ship mortgage Insurance fund .............. .
War risk Insurance revolving f~d ................. .
Federal National Mortga&e AssociatIOn:
Public debt securities (management and liquidating
functions) ..................................... .
Guaranteed securities (FHA debentures) ........... .
Federal Housing Ad~Inlstration:
Public debt securities •............................
Guaranteed securities (FHA debentures) ........... .
Federal Savings and Loan Insurance Corporation ...... .
Tennessee Valley Authority ......................... .
Other ..•••.•••••••.••.•.•••••••.•...•••.••••...•..
Total public enterprise funds ..................... .
rrust accounts, etc.:
ludicial survivors annuity fund ...................... .
HIghway trust fund ............. : ... .' : .............. .
Foreign serVlce retirement and disability fund ........ .
Federal disability insurance trust fund ............... .
Federal old-age and survivors insurance trust fund ... .
Unemployment trust fund ........................... .
Federal National Mortgage Assoc iation:
Secondary market operations:
Public debt securities .......................... .
Guaranteed securities (FHA debentures) .......... .
Not guaranteed securities ....................... .
Veterans life insurance funds:
Government life insurance fund ................... .
National service life insurance fund ............... .
Civil Service Commission:
Civil service retirement and disability fund ........ .
Employees health benefits fund .................... .
Employees life insurance fund .................... .
Retired employees health benefits fund ............. .
Railroad retirement account ...........•.............
Government-sponsored enterprises (net): 27
Farm Credit Administration:
Banks for cooperatives ......................... .
Federal intermediate credit banks ............... .
Federal land banks ............................ .
Federal Home Loan Bank Board:
Home loan banks .............................. .
Federal Deposit Insurance Corporation ............ .
Other ..•••••••••••••••••••••••••••••••••••••••..•••
Corresponding
month
last year
$125,000
100,000
................... ..........
..................
. ...............
. .................
7,086,650
-10,952,000
11,649,550
123,000,000
Fiscal Year
Corresponding
period
fiscal year 1962
1963
to date
$3,543,000
3,153,000
~
.Q
-t2, 709, 650
O.
2. -23,289,750
••
"
5,375,000
•••••••••
.. .......................... 0 ...... Go
• •••••••••• • ••• 0 •••
• ••••••••••••• 0 ••••
$42,091,850
..............................
-3,712,000
124,000,000
-34,000,000
3,141,000
-4,965,000
41,321,700
268,594,000
-10,000,000
12,628,800
127,297,200
95,806,350
290,985,750
191,374,050
91,500
87,869,000
1,349,000
43,319,661
-133,818,143
-106,398,071
15,000
18,719,000
1,248,000
37,730,900
-341,430, 844
-117,954,051
241,000
241,808,000
1,181,000
-128,893,507
-821,475,511
456,477,602
215,500
201,901,000
4,530,000
20,562,039
-1,088,851,504
72,131,867
22,500,000
-13,004,350
19,300,000
••••• 0 ............
-32,198,000
• ••••••••••• 0 ••••••
229,000,000
-29,200,000
-18,319, BC.J
.0 •••••••••••••••
91,500,000
-19,492,250
59,570,000
• . . . . . . . . . . <> • • • • • • • •
31,190,000
173,674,000
27,217,000
163,831,000
-24,807,000
-89,614,000
-43,624,000
44,158,000
376,861,000
972,500
912,500
-1,507,000
458,766,000
331,413,000
987,000
319,906
-1,129,000
422,805,000
1,073,961,000
14,425,500
55,818,500
-1,531,000
501,000
1,029,746,000
11,175,000
50,944,&06
1,631,000
-62,549,000
51,000
781,000
-1,933,000
-2,990,000
2,803,600
-2,200,000
51,000
781,000
-1,933,000
-2,990,000
2,803,600
-2,200,000
611,935,000
160,546,000
114,793,657
-121,995,000
154,300,000
21,817,175
611,935,000
160,546,000
92,912,632
-121,995,000
154,300,000
-7,296,650
Total trust accounts, etc. . ....................... .
1,848,251,254
604,809,136
1,773,962,965
302,519,408
Net investments, or sales (-) ..................... .
1,975,548,454
700,615,486
2,064,948,715
493,893,458
••• ••• ••••••• 0 •••
9,301,450
• •••••••••••••• 0 •••
37,926,650
TABLE VI--SALES AND REDEMPTIONS OF' GOVERNMENT AGENCY
SECURITIES IN MARKET (NET)
Public enterprise funds:
Guaranteed by the United States:
Federal Farm Mortgage Corporation in liquidation ...
Federal Housing Administration:
Issues ~netl to government agencies ..............
HIssues net to the public ........................
Nome Owners' Loan Corporation ...................
ot guaranteed by the United States:
Federal National Mortgage Association
H(management and liquidating functions) ............
Tome Owners' Loan C orporat·lOn ...................
Tru tennessee Valley Authority ........................
5 enterprise funds:
Gua~ant.eed by the United States:
t d'
f un d ..................
NotDIstrIct of Columbi asa!Um
guaranteed by the United States:
Federal National Mortgage ASSOciation
Gove (secondary market operations) ...................
Nornment-sponsored enterprises (net): 27
t guaranteed by the United States:
Farm Credit Administration:
~~ks for cooperatives .........................
Federal interme d'la t e cre d·t
Ibank
S ................
Fe/ al land banks .............................
er Home Loan Bank Board:
Home loan banks ...............................
:r
Net redemptions, or sales (-) ......................
See footnotes on page 14
$500
$200
$8,700
$3,800
-5,731,850
-23,892,900
1,450
-6,591,800
-7,559,800
9,925
1,460,300
-163,872,850
12,400
-80,022,700
-124,004,250
19,575
................
. ...............
. ................
150
.................
5,000
1,125
21,000
1,450
-95,000,000
•• ... • • • ~ •• ,
••••••••••••••• 6 •
................
• • <l . . .
................
................ ...................
24,122,000
8,740,000
597,008,000
-358,710,000
-29,340,000
-277,685,000
-174,488,500
-47,510,000
-131,995,000
-192,306,400
-~-g, 340,000
-277,685,000
-174,488,500
-47,510,000
-131,995,000
-192,306,400
-975,175,000
-750,110,000
,_.
-975,175,000
-750,110,000
-1,462,189,300
-1,127,322,725
.~
_1,022,065,825
-1=- ..
-1,779,612,525
JUNE 30, 1963
TABLE VII--PUBLIC DEBT RECEIPTS AND EXPENDITURES
16
(Includes exchanges)
,
Corresponding
month
last year
This month
Classification
Receipts (Issues):
Public Issues:
Marketable obligations ...•........................
Non- marketable obligations .......................
SI0,331,383 ,000
893,136,011
...........................
Total public Issues
Fiscal Year
1963
to date
Correapondlq
period
fiacal year 1982
38,034,690,000
1,121,625,829
3180,164,431,500
8,864,648,309
3163,565,755,00
8 783 764 68
11,224,519,011
9,156,315,829
189,029,079,809
172 349 519 88
37,462,979,280
508, 652, 200
30,242,798,00
938,131,16
Spec lal Issues .........•..........•..........•.••.
Other obligations .................................
..................
14,093,829,232
11,145,085,000
27,000,000
....................
25,318,348,243
20,328,400,829
227,000,711,290
203 530,448 85
Expenditures (retirements):
Public issues:
Marketable obligations •....••...•..••••..•...••••.
Non-marketable obligations ...........•............
10,951,698,947
779,867,519
10,060,555,257
734,532,860
172,800,564,030
8,705,162,653
154,523,350,57
8,862,679,77
..........................
11,731,566,466
10,795,088,117
181,505,726,683
163,386 030 34
Special Issues .......................•............
Other obligations .••..............................
12,854,468,048
76,492,675
10,497,690,000
8 740 149
37,600,770,305
235 404 025
30,346,991,00
567 541 39
................
24,662,527,190
21,301,518,266
219,341,901,014
194 300 562 74
Excess of receipts (.) or expenditures(-) .•••••..•••....•
-Hl55,821,053
-973,117,437
+7,658,810,275
+9,229,884,11
Total public debt receipts
Total public Issues
Total public debt expenditures
TABLE VIII--EFFECT OF OPERATIONS ON PUBLIC DEBT
Administrative budget surplus (-) or deficit (+) (Table III) .
Excess of trust and other receipts (-) or
expenditures (+) (Table IV) ..••.........•.•..........
Excess of investments (+( or sales (-) in public debt
and agency securities Table V) 28 • • • • • • • • • • • • • • • • • • • •
Excess of sales (-) Or redemptions (+) of Government
agency securities in market (net) (Table VI) 28 • • • • • • • • •
increase (-) or decrease (+) in checks outstanding and
deposits in transit (net) and other accounts 29 • • • . • • • • • •
Increase (-) or decrease (+) in public debt interest
accrued )0 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Increase (+) or decrease (-) in cash held outside ........
Treasurer's account" ..............................
Increase (+) or decrease (-) in balance of Treasurer's
account .•...•..•...................................
Increase (+) or decrease (-) in public debt (Table VII
above) •••....••••.•....... '" ................. '" ..
Gross debt at beginning of period .......................
-.04,379,118,016
-83,512,759,399
,,$6,232,743,778
+!6,377,674,50
+3,708,811
.743,296,329
-1,151,299,155
+850,077,48
+1,975,548,454
+700,615,486
+2,064,948,715
+493,893,4f
-1,462,189,300
-1,127,322,725
-1,022,065,825
-1, 779,612,5~
-555,870,676
-484,734,912
+200,668,862
-547,828,65
+479,470,115
~520,
195,997
-168,207,736
-18,453,63
+35,893,894
-111,258,811
-183,760,978
+117,859,8'
+4,558,377,770
+2,289,850,596
+1,685,782,614
+3,736,273,59
-Hl55, 821,053
305,203,811,942
-973,117,437
299,173,940,158
+7,658,810,275
298,200,822,720
+9,229,884,11
288,970,938,61
Gross public debt at end of period ......................
Guaranteed securitIes of Government agencies,
not owned by Treasury ..............................
305,859,632,996
298,200 ,822,720
305,859,632,996
298,200,822,71
606,610,375
444,218,925
606,610,375
444,218,92
Total public debt and guaranteed securities .•............
Deduct: Debt not subject to statutory limitation ..........
306,466,243,371
367,743,327
298,645,041,645
433,274,382
306,466,243,371
367,743,327
298,645,041,64
433,274,3li
Total debt subject to statutory limitation ................
306,098,500,043
298,211,767,263
306,098,500,043
298,211,767,21:
TABLE IX--SUPPLEMENTARY TABLE OF RECEIPTS AND EXPENDITURES OF
PUBLIC ENTERPRISE (REVOLVING) FUNDS
(Included in expenditures in Table III on a net basis)
Fiscal year 1963 to date
Class ification
E xecutive office of the President:
Office of Emergency Planning:
Civil defense procurement fund .• , •••....•....••..••
F unds appropriated to the President:
Expansion of defense production ......................
Foreign assistance -economic:
All iance for progress, development loans •.•........
Development loan funds .............•.............
Foreign investment guarantee fund ..•..............
Receipts
Expenditures
Net receipts (-)
or expenditures
..................
.................
................
Corresponding
fiscal year 1962
Net receipts (-)
or expenditures
I
I
087,526,370
:31,013,09'3
25
20,780,737
2,939,647
53,514,289
842,228,245
9,021
S7,~
513,274
11,212,01
53,514,263
821,447,507
-2,930,625
........42i;iJ95;ii
-~56,
-1,649,61
Total--Funds appropriated to the President .......
111,246,780
926,764,651
815,517,871
430,658,21
Agriculture Department:
Commodity Credit Corporation:
Price support, and related programs, and
special milk') " ...............................
Special activities financed by C. C. C. 14 • • • • • • • . • • • •
1,813,328,458
725,658,623
5,299,684,500
167,768,412
3,486,356,042
-557,890,211
2,143,132, '1\
492,651,C
See footnotes on page 14.
JUNE 30, 1963
TABLE IX--SUPPLEMENTARY TABLE Of RECEIPTS AND EXPENDITURES Of PUBLIC
17
ENTERPRISE (REVOLVING) fUNDS--Continued
(Included In expenditures in Table
m
on a net basis)
I
~
Fiscal year 1963 to date
Classification
Receipts
Agriculture Department - -Continued
Federal Crop Insurance Corporation •.••••••••
Farmers Home Administration:
DIrect loan account, revolving fund •••••
Other •.•••••••••••.•...••••••••••.
Expenditures
Net receipts (-)
or expenditures
Corresponding
fiscal year 1962
Net receipts (-)
or expenditures
$17,567,432
$24 , 224 , 965
$6,657,532
$1,113,522
••••••••••••••
284,601,070
234,627,019
343,550,035
256,477,645
58,948,965
21,850,625
-6,444,911
28,224,258
Total--Agrlculture Department •••••••••••••..•.•.
3,075,782,604
6,091,705,558
3,015,922,954
2,658,677,197
Commerce Department:
Area Redevelopment Administration ..•.•••.•.••.••.••.
Maritime Administration ••••.•••••••••.•..•.•••••.••.
other ..•••••••••.•..••..•••..•••..••.••.•••••••..•••
564,837
9,517,253
838,325
65,305
19,780,492
303
-499,532
10,283,238
-838,022
-1,041
-2,700,094
-860,360
Total--Commerce Department •.••••.....••...•.••
10,920,416
19,846,101
8,925,684
-3,561,495
'0'
11,596,243
675,972
110,946,289
15,264,767
606,288
119,485,274
3,668,523
-69,684
8,538,985
-859,752
28,283,067
1,723,970
Total--Defense Department •.•••••.•.••..•••••..••
123,218,505
135,356,330
12,137,824
29,147,286
4,517,729
4,388,574
-129,154
-160,161
1,096,033
22,994,351
6,315,003
25,240,186
5,959,030
13,486,377
111,616,729
23,515,066
4,862,996
-9,507,974
105,301,725
-1,725,120
1,783,615
955,117
89,985,811
1,095,416
.......................
55,645,575
154,577 ,202
98,931,627
93,819,961
Labor Department:
Advances to employment security administration
account, unemployment trust fund .••.••••••••••.•••.
Farm labor supply revolving fund ••.•
..................
-89,748,149
2,317,518
-89,748,149
-1,179,036
31,440,113
-366,399
0
0
•••
0
••••••
0
••••••••
Defense Department:
Military functions:
Defense production guarantees •.•..•...•...•
Other .••.•••••.•.••••••.•••.••.••••••..•..••
Civil functions - Panama Canal Company ••••••••••••
0
••••
Health, Education, and Welfare Department ••.•• , • o • • • •
0
0
0
••
0
••
0
0
•
•••••••
0
Interior Department:
Bureau of Indian Affairs •.•••••••••••.•
Bureau of Mines ••.•...••
Bureau of Reclamation .••.•.••.•••••••••••.
other..•••••••.
0
0
•
•••••••••••••
•••••••••••••••••••••••••••
•••••••
0
Total--Interior Department
0
•••••••••
••••••••••••••••••••••
0
••••••••••••••••
3,496,555
-90,927,185
31,073,714
755,426,770
734,176,305
72,322
536,752
307,410
-3,794,790
536,494
-2,086
-1,791,909
67,252
4,176,847
916,485
-3,260,362
-1,724,737
198,297
29,839
-168,457
-281,231
Total--Labor Department ........................
3,496,555
-87,430,630
Post Office Department--Postal Fund ..••••••..•••••••••.
3,884 ,633 ,626
4,640,060 ,396
Treasury Department:
Office of the Secretary .••..•..••••••••.••..••••••••••
B~eau of Accounts--Government losses In shipment fund
Office of the Treasurer--Check forgery insurance fund ••
3,867,113
257
309,477
......................
General Services Administration .•••••••.••••.•.••••.••.
Total--Treasury Department
5
...so
Hous~g and Home Finance Agency:
Office of the Administrator:
~ollege hOUSing loans .••••••••••....•..•.•••.•••••.
Ul~uidating programs •••••.•••••••••
~ an renewal fund •.•••..••••••.••.••••••.•...••••
Feder~'N~ti'o~'ai 'Ni(;;~~~' ~~~~;~ti~~; ••
~ans for secondary market operations ....•.••••.••.
Spanagernent and liquidating functions fund ••••.••••••
F deeCial assistance functions fund •.••..•..•.•
e ral Housing Adm'filS
. t ra t·IOn •.••••••.•••••
PubU'
c Housmg Administration •••.•••
64,915,547
2,293,533
133,267,153
17,349,517
348,489,063
278,598
306,475,327
70,958,005
283,573,515
-2,014,934
173,208,174
53,608,487
227,341,207
-5,650,957
226,948,690
30,484,377
585 , 920,000
308,722,636
484,176,348
503,151,742
390,870,951
585,920,000
122,058,356
221,880,368
637,205,702
569,738,387
..................
. ..................
-186,664,280
-262,295,979
134 , 053 , 960
178,867,436
-176,913,644
53,559,017
199,218,224
164,830,101
Total--Houslng and Home Finance Agency •••••••.••
2,490,667,430
2,863,003,809
372 , 336 , 379
719,817,017
Other~~~~.r.e.v.o.l~:.f~~:::: :::::::::::::::: ::::::
361,383,434
349,805,031
81 686,141
275,205,132
326,884,164
60,849,872
-86,178,301
-22 , 920 , 867
-20,836,268
92,773,690
143,521,637
14,500,848
Total--Veterans Administration ..•••••••••••••••••
792,874,607
662,939,170
-129,935,437
250,796,175
!pOrt-import
Bank 0 f Was h'm gt on.. • ••••••••.••••••••
Farm
C
. t rat'IOn '" .••••••••••••.•••••••••
Fede alredit
H Adm'lms
SaU/L orne Loan Bank Board •.••.••••••••••••••••••
Small :W"r.ence Seaway Development Corporation •••••••
. t rat·Ion ••••••••••••.•.••••••.••
Tenne usmess
V Adm'mlS
UnitedSsee
st t alley Autho rI.ty •••.•••••••••••••••••••••••
a es Information Agency ••••••••••••••••••••..
998,549,223
12,269,500
291,002,869
3,914,567
218,811,571
302,356,798
2,231,344
606,999, 112
13,600,000
27,341,414
5,351,176
353,171 ,333
355,953,086
4,080,956
-391,550,110
1,330,500
-263,661,454
1,436,609
134 ,359,762
53,596,288
1,849,612
101,086,544
-8,627,866
-236,788,176
535,658
222,776,286
102,969,075
1,382,711
.................
1,829,135,873
1,366,497,079
-462,638,793
183,334 ,233
16,778,654,570
4,392,139,720
5,125,779.770
0
••••••
0
•••••••
•••••••••••••
0
0
0
0
•••
0
•••••••
••••••••••
0
0
•••
•••
0.
Veterans Administration:
~~ct loans to veterans and reserves •.•••.••••••••••••
~er Independent agencies;
Total--Other Independent agenCies
Total--Public enterprise funds •••••••••••••••
See fOOlnotes on page 10.
0
••••
12,386,514,850
JUNE 30, 1963
18
TABLE X--SUPPLEMENTARY TABLE OF RECEIPTS AND EXPENDITURES OF TRUST
ENTERPRISE (REVOLVING) FUNDS
(Included in expenditures in Table IV on a net basis)
correlpaa~
Fiscal year 1963 to date
Classification
Receipts
Department of Agriculture:
Farmers Home Administration .....••.•••••••.••••.••
Department of Defense - Civil:
United States Soldiers' Home .....•...•..••.....••.....
Department of Justice:
Alien property activities ....•.•.......•••••..•.•••••
Federal Prison System commissary funds ••.•..••.••••
General Services Administration:
Records activities: National Archives trust fund ••.••••
Housing and Home FlnanceAgency:
Federal National Mortgage AsSOCiation:
Loans for secondary market operations .•.•••••••.••
Other ••...•.••.••...••...•..•••.••.••......••..•
Other Independent agencies:
Civil Service Commission:
Employees health benefits fund
Employees life insurance fund ..••••••.••••••.•...•
Retired employees health benefits fund ..........................
National Capital Housing Authority •..•••••••..••..••.
Federal Communications Commission •..•.•.........•
....................
Total- -Trust enterprise funds .••..•.••.•.••••••••••
filcal year 111
Net receft: (.:
or ellPlD ture\
Net receipts (-)
or expenditures
Expenditures
$9,225,377
$9,276,774
$51,396
108,556
118,142
9,586
-3
"2,146,128
2,444,410
33,834,656
2,500,733
31,688,528
56,322
5,4311
454,981
441,624
-13,356
-31
585,920,000
1,108,836,055
585,920,000
388,214,844
371,847,507
160,587,560
25,528,682
8,560,775
242,054
359,521,321
128,365,939
25,385,926
6,206,100
249,810
-12,326,185
-32,221,621
-142,755
-2,354,674
7,756
2,275,902,089
1,540 035,873
-735 866 215
1917
-28
.................. ...............
-720,621,211
316,735
-10,814
-70,~2
-90
111
-10
241 929
TABLE XI--RESUME OF RECEIPTS BY SOURCES AND EXPENDITURES BY FUNCTIONS
(Figures are rounded in millions of dollars and may not add to totals)
Administrative Budget Funds
Classification
NET RECElPTS
This
month
Trust FlDlds
Same
F.Y.1963 F.Y.1962
month
to
to
last year
date
date
This
month
Same F. Y. 1963 F .Y.
month
to
tc
last year
date
dal
32
Individual Income taxes ....•••••••.•.••.•••.••••••.•••.
Corporation income taxes •.•••••.•••••••••.••••.•••...
Employment taxes •...•..•••••••....•.••.•••••.•....•.
Excise taxes •..••••...•••.•..........•..•••..••.••.••
Unemployment.tax deposits by States •.••••.•••..•.....•
Estate and gift taxes ••..•.•..•......••..••••..•.•••.••
Customs ••.••••..•....••.••.....••.•••••..••••..••..
Federal employees retirement .....•.•.•••••••....•••••
Interest on trust fund investments •..••.••...••••••••.••
Veterans life Insurance premiums •••..••••.••.••••...•.
Miscellaneous receipts •.•.••..•••••••••••.•..••••••..
Interfund transactions (-) ••.•.....••••••••..•••••..•••
$5,095
5,439
$4,847
5,320
$47,596
21,567
$45,571
20,523
894
885
9,914
9,585
184
92
375
-38
164
97
513
-212
2,165
1,205
4,424
-513
$1,340
267
19
$1,054
233
24
$14,862
3,279
al
3,008
2,01G
1,142
-633
146
876
39
737
-452
39
603
-386
81,409
2,972
2,575
27,735
51,103
218
49
2,817
( .. )
2
1,257..............
5,895
490
385
2,147
14
2
2,774
143
177
349
339
868
4,524
2,263
2,101
1,076
(*)
( .. )
5,403
39
56
9,198
•..•..•
1,875
2
3
•. . . . . . .
-80
61
-633
-452
-386
679
44
(.. )
556
122
2,878
-23
21,855
2
838
3,204
146
1,878
864
1,477
497
3,238
-505
r-------r-------r-------+-------1~-----r------1_----_+---
Total net receipts ...•••...••..•.•.••••..•••.••••..
12,042
11,615
86,357
National defense......................................
4,604
International affairs and finance ••.•••.•••. ••••••.•••••
190
Space research and technology........... ••.•••••.••..•
299
Agriculture and agricultural resources •.••.••••••.•••••
380
Natural resources....................................
199
Commerce and transportation •.•••.•..••.•••.••••••..•
264
Housing and community development....................
-110
Health, labor, and welfare.............................
358
Education.......... ••••• .••.•. •.••••..• .•.•••• •••••••
95
Veterans benefits and services.........................
385
Interest.............................................
867
General government. .. ..••.......•••...•.•..•••.•.•••
168
Deposit flDlds (net) • . . . • . . . . • • • • . • • • • . . . • • • • • • • . • • • • . • • . . . . . . . •.
Interfund transactions (-) •.. . . • . . . • . . . • . • . . . . • • . • • . . . • .
-38
5,034
295
142
421
210
308
-91
493
116
398
827
160
•. . . . . . •
-212
52,743
2,545
2,552
7,028
2,352
2,816
-78
4,761
1,244
5,187
9,976
1,978
•. . •••. .
-513
8,102
92,590
2
NET EXPENDITURES
19
120
-505
r------+------~------+-----~----~~----+_----~
Total net expenditures.... ••••..• .•.. •••.••.• .•. .•.
See footnotes on page 14
7,663
87,787
2,975
3,318
26 563
JUNE 30, 1963
TABLEXII--SUMMARY OF FEDERAL GOVERNMENT CASH TRANSACTIONS WITH THE PUBLIC
==
------------ -
--
--------=-:::---=-:-..::~-=-=~-
Classification
---y:::=-:-=
--=--
~- ~----=--=-.:----=-
Corresponding
month
last year
This month
-
- ------
ederal receipts from the public:
Adlllinlstrative budget receipts (net) - see Table III •••••
TrUSt and other receIpts (net) -see Table IV ••••••••••••
lntragovernmental and other non -cash transactions see receipt adjustments Table xm .................
Total Federal receipts from the public
.......................
19
.......:..r--=-=--:-=:----
--- - - - -
-
--
-
--
"------
Fiscal Year
1963
to date
Corresponding
period
fiscal year 1962
1------
$12,041,679,186
2.971, 583,464
$11 ,614,606, 779
2,574,764,605
$86,357,020,251
27,734,578,765
-1,037,838,478
-1,112,784,258
-4,329,429,968
-3,846,697,793
13,975,424,172
13,076,587,126
109,762,169,047
101,887,158,891
7,662,561, 169
2,975,292,276
8,101,847,379
3,318,060,934
92,589,764,029
26,583,279,609
87,786,766,580
25,174,842,099
........
. ..................
$81,409,092,072
24,324,764,612
federal payments to the public:
AdIIIinlstrative budget expenditures (net) - see Table III .
TrUSt fund and other expenditures (net) - see Table IV .•
Adjustment for reclassification of Governmentsponsored enterprise transactions)) ..............
lntragovernmental and other non-cash transactions see payment adjustments Table xm ................
-134,322,000
-1,092,002,800
-1,074,166,082
-1, 105, 557,923
-5,285,435,777
-5,278,843,311
Total Federal payments to the public ••••••••....•••
9,429,365,364
9,222,347,590
113,887,607 ,860
107 ,682, 765,368
Ixcess of cash receipts from or payments to (-) the public.
4,546,058,808
3,854,239,535
-4,125,438,813
-5,795,606,477
655,821,053
-973,117,437
7,658,810,275
9,229,884,110
1,022,065,825
1,779,612,525
C!sh borrowing from the public or re:)'ayment (-):
Public debt increase or decrease (- see Table vn .....
Net sales of Government agency securities in
market (net) - see Table VI .......•...•..•...•.....
Adjustment for reclassification of Governmentsponsored enterprise transactions)) ...............
Net investment (-) in public debt and agency securities ..
Adjustment for reclassification of Governmentsponsored enterprise transactions JJ • . • . • • • . . • • • _ .•
Other non-cash transactions - see borrowing adjustments
Table XIll ••.•••••.•.•••••••••••••••.••••••.•••.•
1,462,189,300
1, 127,322,725
-655,377,000
-1,975,548,454
-1,121,921,400
-700,615,486
Total net cash borrOWing from the public or
repayment (-) •.•••••....•.•••••••..••••.•••••••
., . . - ,
"'
.................. ....................
-2,064,948,715
-493,893,458
521,055,000
29,918,600
..................
.... . ...............
35,780,866
-40,778.253
-1, 033,364,173
-923,424,235
43,920,765
-1,679,191,253
5,582,563,211
9,592,178,942
etgnlorage ..........................................
4,292,091
3,543,502
44,897,238
57,561,006
Total cash transactions With the public ....•.•.•.••••
4,594,271,665
2,178,591,785
1,502,021,636
3,854,133,471
ash balances - net increase or decrease (-):
Treasurer's account ................................
Cash held outSide Treasury ..........................
4,558,377,770
35,893,894
2,289,850,596
-111,258,811
1,685,782,614
-183,760,978
3,736,273,595
117,859,876
Total changes in the cash balances •.••••••.•••••••.
4,594,271,665
2,178,591,785
1,502,021,636
3,854,133,471
TABLE XIII--INTRAGOVERNMENTAL AND OTHER NON-CASH TRANSACTIONS
(Showing details of amounts included as adjustments in Table XII above)
ustmeots applicable to receipts:
blragovernmental transactions:
Interest on trust fund investments. • • • • • • • . • • • • • • • • .
Civil Service retirement - payroll deductions for
employees ......................... ............
Civil Service retirement _ employers' share.........
other .......................... .................
$875,992,807
$854,687,081
$1,466,552,213
$1,423,267,873
72,317,672
72,323,531
12,908,562
73,126,470
73,133,579
108,293,614
914,092,519
914,192,787
989,661,990
845,018,182
845,123,907
675,705,428
Subtotal ........ .•••••.•.••••... •••• ••••••.•••.
1,033,542,572
1,109,240,744
4,284,499,510
3,789,115,392
~ refund bonds.... .•.••••••. .....................
IgIllorage .. • .. • • • • . • • • .. • • . • • • • • • • • • • • • • • • • .. • . ••
10
33,220
21,395
1--_ _ _-=4"',=-29"'2'-'-,.C-0e-.91
~----~--~-4-------------+------------4-------------
3,813
+-________3'-',54:..--:3"-"5O=2+____44::..::..c'c-89'_'7.'.,~23'-8'+----5'-'7~,-56-1-'-,-00-6
Total receipt adj ustments •.•••.••••••••••••.•••• , f==~1,~0::;3~7,~8::;3;;8';,:4:;7;;8=I===~I;;,~1;;12;;,~78~4;;,,:;258~t===4;,,30=2=9;,'42=9;,'9=6=8=1=====30='0=846=,0=697=,70=9=3
lISIments applicable to payments:
mtragovernmental transactions (see detail under
1!~~eabiPlt adjustments) •.•••••••.•.•••••••••••••••••• ~=~1,~0~3~3,;;;54~2,;;;5~7;;2~=~I;',~10",;9~,;;2~40~'dc744~f==~4~,28~4~,4;;;9~9~,5;;1~09===~3~,~78;;9~,,;,11;;;5:,;,,,;,39~2
1C e also to net borrowings:
vingS bond increment....... .....................
58,707,092
65,044,662
576,707,058
419455,'098°04,'489391
Iliscount and prem'
119,083,409
Internati
lumS on securl·t'les ...............
-18
" 419 094
-43, 186 , 947
171 000 000
oth
onal Monetary Fund notes .................
-54,000,000
19,000,000
255,000,000
,
,
er SpeCial security issues •..•••..••••••••••••• 1---__-.:-::'2~2'L,~06~5'L,~0~504-------=-:.'.7"-9,~4~50~_ _ _--.::8~2"-,60=6~,9~2":::5+____1::1~1,,-,4~60::::.:.,-=-3OO=
"I't
Subtotal .. • • • • . • • • • • • . • • • • • • • • • • • • • • • • • .. • • •• ~==~-3;:;5~,7~7~7':,::0,::,:52~===~40~'0=77;,8~,2=6=4+===1=,0=33='0=39=7=,=39=3=!====9=23=c,~__
5,=63=0
~ccruedintere t
bl' db
479470115
529195997
168,207,736
18,453,636
Checks 0 t t ~ on pu IC e t ......................
- 5 5' 870' 676
- 484' 734' 912
-200,668,862
547,828,652
us an 'ng and other accounts ••••••••.••••••• 1===~5;::,:'~~'~~===~~'=~'=*========1=========
Total payment adjustments •••.••••••••.••.•.••.. f===I,;",'=07=4~,=16=6~'0=0=82=t===1,=1=0=5=,5=5=7=,9=2=3+===5=,=28=5=,=43=5=,=77=7=\====5=,=27=8=,=84=3=,=3=11
~~ents applicable
to net borrowings:
Re s~uance representing:
Pa~PtSts- tax refund bonds. .•..•••.•••..•.•.•••••.
, ... en
-3,813
-10
033 -3 3
923,-44215,'639305
937,2 2°3
39 _ _ _ _ _ _ __
- (see detail under payment adjustments) •• 1---__~-3~5"-,~7~77~,:::0~52~_ _ _~40:::.:...,7:..:7..::8:..:,2:.:6:..:4+--...::1.'..,-.:...,-.:...'_-+
Total borrOWing adjustments (net) •••.•••••••••••.
-35,780,866
40,778,253
1,033,364,173
923,424,235
TREASURY DEPARTMENT
July 18, 1963
FOR IMMEDIATE RELEASE (6:15 P.M. EDT)
The Treasury Department announced today that purchasers
of foreign securities traded on a national securities exchange
registered with the Securities and Exchange Commission would
not be subject to the Interest Equalization Tax proposed by
the President in his Message to the Congress today on
purchases made on such exchanges prior to and including
August 16, 1963.
000
TREASURY DEPARTMENT
•
July 18, 1963
FOR TIMMEDIATE RELEASE (6:15 P.M. EDT)
The Treasury Department announced today that
purchasers of foreign securities traded on a
national securities exchange registered with the
Securities and Exchange Commission would not be
subject to the Interest Equalization Tax proposed
by the President in his Message to the Congress
today on purchases
made on such exchanges prior
to and including August 16, 1963.
000
D-917
TREASURY DEPARTMENT
Washington
98" ' ,
,
-.
\.,
FOR RELEASE ON DELIVERY
EXCERPTS FROM REMARKS BY
THE HONORABLE HENRY H. FOWLER
UNDER SECRETARY OF THE TREASURY
AT THE GOVERNORS' CONFERENCE
DEAUVILLE HOTEL, MIAMI BEACH, FLORIDA
TUESDAY, JULY 23, 1963
The devotion of this meeting of the Governors' Conference
to "Expanding Employment Opportunities" suggests that this
problem concerns every state in the Union, and that it will concern them even more in the years ahead. Each state needs an
economy which will produce jobs faster than they are being produced today. A prompt and substantial reduction and revision
of Federal income taxes along the general lines recommended by
the President offers the most effective means of meeting this
problem. It is the most urgent economic business before the
Nation which must be attended to this year.
Today there are more than four million people in the
United States who are willing and able to work but who can't
find jobs.
In the past twelve months our economy, operating on an expanding basis, provided about 870,000 new jobs -- but they had
to be divided among well over a million new workers. The result
was that for every five workers who found jobs, one found unemployment.
This is no new or temporary situation. For the past five
years unemployment has continually exceeded five percent of the
available work force. But there is an increasing urgency in
the need to expand employment opportunities. Each passing
month brings, the nation closer to its responsibility to provide
work for the floodtide of youth born in the aftermath of World
War II.
With an addition of more than a million to th2 labor
market in the last· twelve months, unemployment remained between
five and six percent. But as we reach the crest of that floodtide of young people, the annu9l addition to the labor market
D-918
- 2 will rise precipitously. Then the gap between the additional
workers and the available jobs will widen rapidly, so that instead of one out of every six newly available workers unable
to find a job -- already a threatening proportion -- we will
have one out of every five, one out of every four, perhaps one
out of every three unable to find a job.
Early this year the President of the National Association
of Manufacturers, W. P. Gullander, estimated that if our economy
doesn't do better at creating jobs than it has for the past five
years, 1970 will see our employment rate more than double what
it is today -- a staggering 12.7 percent.
There are many approaches to expanding job opportunities -and we must campaign agg'ressively on many fronts to reach this
goal. But, as Secretary' Wirtz has observed, there is only one
available opportunity to generate a massive increase in job
opportunities at a single stroke; that opportunity is to cut
taxes right now and on the scale urged by th~ President, thereby
enabling our great private enterprise economy to do the job.
Our current tax system exerts too heavy a drag on employment, private purchasing power, profits and incentives -- its
high rate structure being designed in time of war and postwar
inflation to hold back conswn,~r demand, initiative and investment. It now checks growth. It discourages extra effort and
risk. It invites recurrent recessions. It blocks the path to
full employment.
This is not just the op~n~on of the Treasury Department,
President Kennedy, the Secretaries of Commerce and Labor, the
President's Council of Economic Advisers and others associated
with the present Administration. ~t is the voiced opinion of
many in private life who, by reason of unusual knowledge and
experience concerning the workings of the private economy, are
in a position to have an informed judgment.
Seldom in the nation's history have its economic brains
and leadership from diverse private sectors developed such a
solid consensus on a key economic issue as that which has
emerged on the national need for the scaling down of the Federal
income tax rate structure this year.
- 3 -
')8')
J , __
~
More than two hundred witnesses testified before the Ways
and Means Committee of the House of Representatives on the
President's tax proposals. They represented many leading
business and trade organizations, the labor unions, and others
familiar with our economic system. While their views have
differed widely on specifics, only two of these witnesses have
disagreed with the central thesis of the President's program -the need for a substantial tax reduction to encourage economic
growth and the expansion of job opportunities.
The Business Committee for Tax Reduction in 1963, organized on April 25th of this year, has brought together over 1,500
of the nation's leading businessmen and bankers in a truly remarkable individual expression of their belief that the Congress
should enact during the present session net reductions of corporate and individual taxes totaling about $10 billion. Specifically, they advocate a substantial reduction in all individual
tax rates in the present range of 20-91 percent and a reduction
in the rate of corporate income tax to at least 47 percent.
They believe that the present tax structure "hobbles the economy
and slows our growth towards the goals of high employment, efficient use of our productive resources, including labor, and
faster econo:nic growth." I commend for your examination a reading of the "Statement of Principles" of this new organization
and the impressive list of those who have subscribed to it.
But this conviction is not limited to leaders of big
business or even business. The National Small Business Advisory
Council, a nonpartisan group from all parts of the country, appointed pursuant to the Small Business Act as "truly representative of small business", in May adopted a resolution supporting
a program of tax revision with objectives along the general lines
of that proposed by President Kennedy. The resolution stated
that the program "to give maximum benefit to small business should
be enacted this year and should include a net reduction of individual and corporate taxes totaling about $10 billion and an immediate reversal of corporate normal and surtax rates."
Long in the vanguard for public measures to expand employment opportunities is the AFL-CIO. That organization has urged
this Congress to adopt an immediate tax reduction of $10 billion
to provide the economy with the maximum thrust of a high velocity
buying power.
- 4 -
283
A dramatic example of the consensus that has been achieved
on this subject is the recent announcement of the coming together of forty-five nationally recognized leaders of labor,
small business, education, agriculture, housing and welfare
groups in a Citizens Committee for Tax Reduction and Revision
in 1963. This leadership group reached common agreement on the
need for action at this session of Congress to "achieve a meaningful revision in income tax laws, including a substantial net
reduction of individual and corporate taxes, totaling about
$10 billion."
Last week, despite their well known proclivity for having
differences of opinion in the freedom of academic communities,
over four hundred leading professional economists in more than
forty colleges and universities throughout the country subscribed
to a statement on the Adninistration's tax program. They noted
that while there are significant structural problems which make
it difficult to find jobs for the more disadvantaged of the unemployed, the first need is to achieve a high overall level of
economic activity. They stated that: "If this is done, efforts
to retrain and relocate displaced workers will be more effective."
I should like to quote a few sentences from their statement:
"We are confident that both the short-run and
long-run effects of the tax reduction will be
beneficial. Indeed, insofar as there is a difference
of opinion among us, it is that some of us believe
that a larger tax cut should have been proposed. On
the whole, we believe that the A~ninistration's program, as originally submitted to the Congress, represents a reasonable compromise. It provides a tax
reduction for both individuals and corporations. It
should provide a significant stimulus to consumer
spending and it should have a beneficial effect on
. .~nvestment. "
pr~vate
From what has been said, it is clear that what is needed -critically, urgently, immediately needed
is something which
will begin producing more jobs than will be created if we go on
as we are.
That is exactly what the tax cut was intended to do.
- 5 -
281
The Joint Economic Committee of Congress has estimated
that a $10 billion tax reduction such as the President proposed
would increase GNP by approximately $40 billion in the years
just ahead over what GNP would be under the present tax structure.
It has been reliably estimated that such an addition would
create around three million new jobs.
Increased job creation will be a continuing, rather than a
single-shot effect of the tax program designed as it is to create
a healthy environment of sustained demand and investment incentives conducive to a full employment economy. Through the interaction of investment, demand, and profits, the tax program will
foster an upward spiral of economic activity which will generate
new and sustained vitality. The result will be not merely three
million jobs but a continuing high level of job production resulting from an economy operating at full potential.
Today, this tax program is only a set of proposals advanced
by the President and the Treasury; they depend for' their acceptance upon the will of the Congress as its members reflect the
opinion of their constituents.
Late this summer and fall the American people and the
Congress will have to answer a question which has more bearing
on the prospects for expanding job opportunities than any other
that could be asked. It is this: "Shall we enact a program of
tax reduction and revision?"
The informal expression of individual op~n~on by the Governor
of any state on the need for expanding employment opportunities in
his state, the importance of expanding consumer demand for the
products of that state, and the importance of increasing investment incentives and the prospects for increased profits after
taxes to state industrial development programs will carry great
weight with the members of Congress who, in the final analysis,
will have to dispose of the legislative issue presented by the
tax program.
000
".q II, 1963
lUI lILlie. 1. M. ""Ur :RS,
fae!d!r. July 23. 1963.
•
IISVLtI
or fllASUBt'.
WIIIIrJ BILL OP'P'UING
Tile 1'nanry DIt~rrt annOWMJed 1aat 8't'8l'd.ac ...., t.M ......... , . . t.wo aerio. Q
l'NUUI"J billa, ODe aeries t.o be an additional Una ot t.be ~ claW A/.rU 2~, 196
and the other aerie. to be dated JulJr is, 196J, Wl1eIa . . . offeNd - Mol' 17, wn
opened at. the r~T'al Reserve Banks Oft hlI' a. TeDdetw .... 1Irr:L. . t . ~lt)OOtooo,
or t.beNabouta, or 91-day bUl, aDd tor $600,000,000, or tbeftllboaU, of H2~ bW
!be det.aUa ot the t.wo series are as toUCMla
RANGE 0' ACCf. Pf ED
91-day rreasUI"T bUla
I
lCa-c:lq ~~r "'~'Ur1 bUll
C'.MmITIVf 01lFt
_~ Oo~ •
-!!riM J8.lll.1ar"j 23,
•
~.
1I;li , rox.
Prioe
ANNal fiat.
,
Prlee
AnnUal HaM
12"
H1&b
Low
.ftnge
66
perGIIIQt
1) pa.roen\
99.195" ).lasS
,98.j)6
3.)5~
99.183
3.2lD
I
98.191
).)llOi
99.190
l.~ }/
98.291
).)69"';
of the DOUIlt of 91....., bUltl 1d.4 tor at the low pr1ee _
aooep\ed
of t.1'.e DOImt of 182-da¥ blUe bid tar at, U. low t1J'loe . . acoept.ed
.
Y
!OrAl. fRJmnS At'I'PLIIJ) fOR AlID ACCIPftD It nlllllL IUlDI Dl8IUctI.
A~l1ed
Diatr1ct.
1..t:Cn
$
lev lode
Ph11IIdel.pb1a
Cle'ftIl.eDd
R1eMoad
AUanta
CblM80
S\. Lou1a
MlaDeapolJ.a
, . ... C1.
Dal.1u
san fftno1no
T0'l'U.5
For
SO,7J9.0x)
1~)OO,7ffJ,OOO
)0,685,000
)0,560,000
1),6S8,OOO
2S,247,OOO
2O),Q6S,OOO
)3,9$4,000
16,700,CXlO
37,942,000
26,l22,ooo
~12!!a.OOO
$1, - ,196,000
lC-fWd
0,369,000
$
I
859,229,000
15,88S,<n>
I
t
I
t
~~'
i~814,600
),72),00
12,596,00..1
2,t-SO,OO
)6,91&6.000
22,247.000
I
6,005,000
18,700,000
1I,9la,OOO
2S,782.OOO
•
•
I
I
I
nll!ooo
$l,300.nOOO !I
t
4. 700, ())
626, 567, ocr
lO,lIS.GOO
I
l41,06S,OOO
ta.hSb,ooo
4-.
l,us,lJ7,OOO
~tS60.000
13,511,000
!cc.pted
2,8S0.ooo
s,eQS,oo
lm..=,OOO
9,·· ,000
37,)S2,oa
lO,b)l,OOO
6,)91&,000
6,)64,00
),8916,00
',SaL.,OOO
9,ua,oa:
llk.:lI.OOO
$1,w',86l..0a0
3,8J~ltoa
76• .IZ.oo
~;800, S11.~
TREASURY DEPARTMENT
-
fOR RELEASE A. M. NEWSPAPERS,
ruesday, July 23, 1963.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
rreasury bills, one series to be an additional issue of the bills dated April 25, 1963,
andtbe other series to be dated July 25, 1963, 'Which were offered on July 17, were
opened at the Federal Reserve Banks on July 22. Tenders were invited for $1,300,000,000,
or thereabouts, of 91-day bills and for $800,000,000, or thereabouts, of 182-day bills.
!'he details of the two series are as follows:
91-day Treasury bills
:
1tl2-~ Treasur,r bills
maturing October 24, 1963
maturing January 23, 1964
Approx. Equiv.
Approx. Equiv.
Price
Annual Rate
:
Price
Annual Rate
High
99.195
3.185%
98.306
3.351%
Lcm
99.183
3.232%
98.291
3.380'''
Average
99.190
3.206% Y
9tl.297
3.369% !I
66 percent of the amount of 91-day bills bid for at the .Low price was accepted
13 percent of the amount of 182-day bills bid for at the low price was accepted
RANGE OF ACCEPl'ED
C(lfETITIVE BIDS:
Wl'AL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
st.
Louis
Minneapolis
Kansas City
Dauas
San Francisco
TOTALS
ApE1ied For
$ 50,709,000
1,300,769,000
30,885,000
30,560,000
13,858,000
25,247,000
203,065,000
33,954,000
18,700,000
37,942,000
26,122,000
76 z985 2 OOO
$1,848,796,000
Applied For
Accepted
$ 10,874,000
$ 40,369,000
1,125,137,000
859,229,000
10,125,000
15,885,000
36,946,000
30,560,000
2,tl50,000
l3,51tl,000
6,005,000
22,247,000
101,352,000
141,065,000
9,864,000
28,454,000
6,394,000
18,700,000
10,433,000
32,942,000
9,524,000
25,782,000
l34 z357 z000
71 2625 1 000
$1,3 00 ,376,000 ~ $1,463,861,000
·
·
·
···
/lccepted
$ 4,700,000
626,567,000
3,725,000
12,596,000
2,e50,000
5,805,000
37,352,000
8,364,000
3,894,000
8,843,000
9,424,000
76 2 397 zOOO
$800,517,000
'£/
.Vmcludes $248,031,000 noncompetitive tenders accepted at the average price of 99.190
'/mcludes $59,383,000 noncompetitive tenders accepted at the a~erage price of 9tl.297
On a coupon issue of the same length and for the same amount illveS-Ced.,. -che return on
, these bills would provide yields of 3.28%, for the 9l-day bills, and 3.1..1.7%, for the
182-d~ 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 III an
interest payment period to the actual number of days in the period, with semiannual
compounding if more than one coupon period is involved.
0-919
Y
TREASURY DEPARTMENT
July 20, 1963
FOR IMMEDIATE RELEASE
SATURDAY, JULY 20, 1963
July 19 remains the effective date of the interest
equalization tax, recommended by President Kennedy, on purchases of all foreign securities outside of the United States,
the Treasury said today.
Following the President's Message on July 18, the
Treasury announced a delay to August 16 as the date from which
purchases of outstanding foreign securities would be subject
to the rules of the proposed tax, if those purchases were
effected on U. S. national securities exchanges registered
with the Securities and Exchange Commission.
The delay does not apply to transactions carried out on
foreign securities exchanges nor to transactions in the U. S.
or elsewhere which are not carried out through U. S. registered
securities exchanges. The recommended effective date of the
proposed tax on such transactions, and for taxable newly issued
foreign securities purchased by American investors, remains
July 19.
The Treasury and representatives of the exchanges are cur
rently developing the detailed procedures involved in applyipg
the rules of the proposed tax to transactions on these U.S.
exchanges.
000
D-920
TREASURY DEPARTMENT
..
4>6S""
==
July 20, 1963
FOR IMMEDIATE RELEASE
SATURDAY, JULY 20, 1963
July 19 remains the effective date of the interest
equalization tax, recommended by President Kennedy, on purchases of all foreign securities outside of the United States,
the Treasury said today.
Following the President's Message on July 18, the
Treasury announced a delay to August 16 as the date from which
purchases of outstanding foreign securities would be subject
to the rules of the proposed tax, if those purchases were
effected on U. S. national securities exchanges registered
with the Securities and Exchange Commission.
The delay does not apply to transactions carried out on
foreign securities exchanges nor to transactions in the U. S.
or elsewhere which are not carried out through U. S. registered
securities exchanges. The recommended effective date of the
proposed tax on such transactions, and for taxable newly issued
foreign securities purchased by American investors, remains
July 19.
The Treasury and representatives of the exchanges are currently developing the detailed procedures involved in applying
the rules of the proposed tax to transactions on these U.S.
exchanges.
000
D-920
-2-
In the light of this situation U.S. officials agreed
that the draft legislation to be submitted to the Congress
would include a provision authorizing a procedure under
which the President could modify the application of the tax
by the establishment from time to time of exemptions, which
he could make either unlimited or limited in amount. The
President would thus have the flexibility to permit tax
free purchases of n,ew issues needed to maintain the unimpeded
flow of trade and payments between the two countries, and to
take care of exceptional situations that might arise in the
case of other countries. U.s. officials made clear that this
did not modify their proposals regarding the taxation of
transactions in outstanding securities; over the past year
such transactions between Canada and the U.S. have not been
a major factor.
The Canadian authorities stated that it would not be
the de..;ire or intention of Canada to increase her foreign
exchange reserves through the proceeds of borrowings in the
U. S., and it is the hope and expectation of both governments
that by maintaining close consultation it will prove possible
in practice to have an unlimited exemption for Canada without
adverse effects on the United States.
It was agreed that active consultations would continue
to strengthen the close economic relations between the two
countries and at the same time facilitate measures for making
the maximum practicable contribution to economic expansion
and the strength and stability of both currencies.
--------------------------The conversations which were conducted in the u.s.
Treasury on Saturday and Sunday included for Canada, Ambassador
Charles S.A. Ritchie, Louis Rasminsky, Governor of the Bank
of Canada, A.F.W. Plumptre, Assistant Deputy Minister of
Finance and A.E. Ritchie, Assistant Under Secretary of State
for External Affairs; for the United States, Douglas Dillon,
Secretary of the Treasury, George Ball, Under Secretary of
State, Robert V. Roosa, Under Secretary of the Treasury for
Monetary Affairs, and Stanley Surrey, Assistant Secretary of
the Treasury.
TREASURY DEPARTMENT
July 21, 1963.
For Simultaneous Release in Ottawa and Washington at 6:00 p.m.
Sunday, July 21, 1963.
Joint Canadian--United States Statement
h~presentatives of Canaaa and ~he United States met in
vJashingcon during the weekend to appraise the impac t on the
Canaciian fi.nancial markets of the proposed United States
:;interes t equalization taxI!.
The two governments recognize the need for effective
acc:';'on co improve the balance of payments positions of both
countries and both are equally determined that such action
shall not impair the intimate economic relationships between
the two countr':"es, nor impede the growth essential for both
economies.
For many years the capital markets of the two countries
have been closely inter-connected, and U.s. exports of capital
-to Canada have financed a subscantial portion of theCanadian
current account deficit.: with che U.S. This need continues.
A portion of these flows must be supplied through the sale of
new issues of Canadian securities in American markets. U.s.
o££icials had considered that ample flows for these needs would
continue und~r the proposed liinterest equalization taxI:.
However, Canadian representa~ives stated that this would require
a very substantial rise in th~ entire Canadian interest rate
struccurc. It was recognized by boch governments that such a
development would be undesirable in the present economic
c~rcumscances.
TREASURY DEPARTMENT
•
July 21, 1963
FOR SIMULTANEOUS RELEASE IN OTTAWA AND WASHINGTON AT 6:00 P.M.
SUNDAY, JULY 21,1963
JOINT CANADIAN--UNITED STATES STATEMENT
Representatives of Canada and the United States met in
Washington during the weekend to appraise the impact on the
Canadian financial markets of the proposed United States
"interest equalization tax".
The two governments recognize the need for effective action
to improve the balance of payments positions of both countries
and both are equally determined that such action shall not impair
the intimate economic relationships between the two countries,
nor impede the growth essential for both economies.
For many years the capital markets of the two countries have
been closely inter-connected, and U.S. exports of capital to
Canada have financed a substantial portion of the Canadian current
account deficit with the U.S. This need continues. A portion of
these flows must be supplied through the sale of new issues of
Canadian securities in American markets. U.S. officials had
considered that ample flows for these needs would continue under
the proposed "interest equalization tax." However, Canadian
representatives stated that this would require a very substantial
rise in the entire Canadian interest rate structure. It was'recognized by both governments that such a development would be
undesirable in the present economic circumstances.
In the light of this situation U.S. officials agreed that
the draft legislation to be submitted to the Congress would
include a provision authorizing a procedure under which the
President could modify the application of the tax by the
establishment from time to time of exemptions, which he could
make either unlimited or limi.ted in amount. The President would
thus have the flexibility to permit tax free purchases of new
issues needed to maintain the unimpeded flow of trade and
D-921
- 2 -
payments between the two countries, and to take care of exceptiona
situations that might arise in the case of other countries. U.S.
officials made clear that this did not modify their proposals
regarding the taxation of transactions in outstanding securities;
over the past year such transactions between Canada and the U.S.
have not been a major factor.
The Canadian authorities stated that it would not be the
desire or intention of Canada to increase her foreign exchange
reserves through the proceeds of borrowings in the U.S., and it
is the hope and expectation of both governments that by
maintaining close consultation it will prove possible in practice
to have an unlimited exemption for canada without adverse effects
on the United States.
It was agreed that active consultations would continue to
strengthen the close economic relations between the two countries
and at the same time facilitate measures for making the maximum
practicable contribution to economic expansion and the strength
and stability of both currencies.
The conversations which were conducted in the U.S. Treasury
on Saturday and Sunday included for Canada, Ambassador Charles S.A
Ritchie, Louis Rasminsky, Governor of the Bank of Canada, A.F.W.
Plumptre, Assistant Deputy Minister of Finance and A.E. Ritchie,
Assistant Under Secretary of State for External Affairs; for the
United States, Douglas Dillon, Secretary of the Treasury,
George Ball, Under Secretary of State, Robert V. Roosa, Under
Secretary of the Treasury for Monetary Affairs, and Stanley Surrey
Assistant Secretary of the Treasury.
000
TREASURY DEPARTMENT
July 22, 1963
FOR IMMEDIATE RElEASE
TREASURY DECISION ON ITALIAN STYIE BREAD
UNDER THE ANTIDUMPING ACT
'TIle Treasury Department has determined that Italian
style bread from 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.
Notice of the deter-
mination will be published in the Federal Register.
'TIle dollar value of imports of the involved merchandise received during 1962 was approximately $156,000.
"Q ')
TREASURY DEPARTMENT
=
FOR IMMEDIATE REIEASE
TREASURY DECISION ON ITALIAN STYlE BREAD
UNDER THE· ANTIDUMPING ACT
The Treasury Department has determined that Italian
style bread from 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.
Notice of the deter-
mination will be published in the Federal Register.
The dollar value of imports of the involved merchandise received during
1962
was approximately
$156,,000.
- 3 -
and exchange tenders will receive equal trea.tment.
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 sal
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
treutm~nt,
as such, under the Internal Revenue Code of 1954.
The bills are subject
to estate, inheritance, girt or other excise taxes, whether Federal or state, but
a.re exempt from all taxation now or hereafter imposed on the principal or interes1
thereof by any state, or any of the possessions of the United states, or by any
local taxing a.uthority.
For purposes of ta.xation 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 f'rom consideration as capital assets.
Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need tnclude 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 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 (current reVision) and this notice, pre
scribe 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 -
4ec:1malB, e. g., 99. 925.
Fra.ctions ~ 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 Ba.nks or Branches on application therefor.
Banking institutions generallY' may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.
Others than
baDk1ng institutions will not be permitted to submit tenders except for their
om 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.
DmnediatelY' atter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made bY'
the !reasury Department of the amount and price range of accepted bids.
Those
SUbmitting tenders will be advised of the acceptance or rejection thereot.
The
Secretary ot the Treasury expressly reserves the right to accept or reject 8JlY'
or aJ.1 tenders, in whole or in part, and his action in 8ny such respect shall be
t1nal.. ·Subject to these reservations, noncompetitive tenders tor $ 200,000 or
(CfiJ
less tor the a.dd1tionaJ. bills dated
May 2, 1963
, ( 91 days remain1ng until maturitY' date on
.
' . 0 or less tor the
f&4
October 31, 1963
~
fliij
) and noncompetitive tenders tor
182 ..day bills without stated price trom any'Qne
G<in
bidder will be accepted in tull at the average price (in three decimals) ot acCepted competitive bids
tor the respective issues.
Settlement for accepted ten-
ders in accordance with the bids must be made or completed at the Federal Reserve
Bazlk8 on
111.
AuguS.1963
, in cash or other immediately available funds or
a like tace amount ot Treasury bills maturing
August W963
•
Cash
TREASURY DEPARTMENT
Washington
-
July 24, 1963
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two seris
, or thereabouts,
1963
2,lOl~9,OOO
fOI
, in the &mow:
, as follows:
,
91 -day bills (to maturity date) to be issued
August ~1963
(&£
in ~he amount of $ 1,300~O,OOO , or thereabouts, representing an additional amount of bills dated
and to mature
.
October 31, 1963
May
2~63
,
, originally issued in the
m , the additional and original bills
amount of $ 800'ti&i000
to be freely interchangeable.
182 -day bills, for $
800~OOO
{ClU
August
~963
,or thereabouts, to be dated
, and to mature
January~
1964
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 onlYJ
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Daylight Saving
closing hour, one-thirty p.m., Eastern/stu!!btri time, Monday, JUl~ 1963
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
=
.E9R IMMEDIATE RELEASE
July 24, 1963
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
$2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing Augus t 1,1963,
in the amount of
$2,101,679,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of $ 1,300,000,000, or thereabouts,
additional amount of bills dated May 2, 1963,
mature October 31,1963, originally issued in the
$800,950,000,
the additional and original bills
interchangeable.
August 1, 1963,
representing an
and to
amount of
to be freely
182-day bills, for $ 800,000,000,
or thereabouts, to be dated
1,1963
and to mature January 30, 1964.
~gust
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, $50,000, $100,000, $500,000 and $1,000,.000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m., Eastern Daylight Saving
time, Monday, July 29,1963.
Tenders will not be
received at the Treasury De~artment, 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.
up
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. 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-922
- 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 Secreta I'Y of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
May 2 1963
(91-da ys remaining until maturit¥ date on
Octob~r 31,'1963) and noncompetitive tenders for ~100,000
or les8 for the 182-day bills without stated price from anyone
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 accordanoe with the bids must be
made or completed at the Federal Reserve Banks on August 1, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing Augus t 1, 1963. Cash and
exchange tenders will recei.ve equal treatment. Cash adjustments
will be made for differencl;ls between the par value of maturing
bills accepted in exchange and the issue prioe of the new bills.
The inoome 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 speoial 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. 418 (current revision) and this
notice prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fro
any Federal Reserve Bank or Branch.
000
TREASURY DEPARTMENT
=
July 24, 1963
FOR IMMEDIATE RELEASE
TRFASURY ANNOUNCES $6.6 BILLION AUGUST 15 REFUNDrnG
In furtherance of the President t s Balance of Payments Program, as set forth
last week, the Treasury announced today that it will refund the entire amount of
securities maturing August 15, 1963, through the offering of a 3-3/4% 15-II).onth
note. Of the $6.6 billion of maturing issues, only $2.5 billion is held by the
public, the remaining amount being held by the Federal Reserve and Government
Investment Accounts. Last March, holders of the maturing issues had an opportunity
to exchange their holdings in an advance refunding for issues maturing in 1961,
1971 and 1980.
The notes 'Will be dated August 15, 1963, and will mature November 15, 1964.
They will be offered at par.
Cash subscriptions for the notes will not be received.
for exchange are as follows:
The maturing issues eligible
$5,181 million of 3-1/2% Treasury Certificates of Indebtedness
of Series C-1963, dated August 15, 1962, and
$1,461 million of 2-1/2% Treasury Bonds of 1963, dated
December 15, 1954.
The subscription books will be open only on Jug 29 through Jug 31 for the
receipt of subscriptions. Subscriptions addressed to a Federal Reserve Bank or
Branch, or to the Office of the Treasurer of the Un! ted States, and placed in the
mail before midnight, July 31, will be considered as timely. The notes will be
made available in registered as well as bearer form. All subscribers requesting
registered notes 'Will be required to furnish appropriate identifying numbers as
required on tax returns and other documents submitted to the Internal Revenue
Service.
Interest on the notes will be payable on November 15, 1963, and May 15 and
NOVember 15, 1964.
000
D-923
TREASURY DEPARTMENT
July 24, 1963
FOR IMIv1EDIATE REIEASE
WITHHOIDING OF APPRAISEMENT ON
WINDOW GIASS
The Treasury Department is instructing customs field officers
to withhold appraisement on window glass, 16-ounce through 28-ounce
thicknesses, from the U.S.S.R., 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 Registel
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 injury must be shown to
justify a finding of dumping under the law.
The Bureau instituted an investigation in this case on May 3, 1963.
The dollar value of imports received during 1962 was approximately
$600,000.
000
TREASURY DEPARTMENT
=
July 24, 1963
FOR IMMEDIATE RElEASE
WITllliOIDING OF APPRAISEMENT ON
WINDOW GIASS
The Treasur,y Department is instructing customs field officers
to withhold appraisement on window glass, 16-ounce through 28-ounce
thicknesses, from the U.S.S.R., 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 industr,y
was being injured.
Both dumping price and injur,y must be shown to
justify a finding of dumping under the law.
The Bureau instituted an investigation in this case on May 3, 1963.
The dollar value of imports received during 1962 was approximately
:t6oo"OOO.
000
- 2 -
The exhibit is scheduled to be on view through the remainder
of this summer.
It is located near the Treasury's permanent
Exhibit Room visited by about 100,000 tourists each year.
FOR IMMEDIATE RELEASE:
Treasury Display Pictures the
Work of its Law Enforcers
A' 2
5 l photographic display portraying the activities
of the seven Treasury Enforcement Agencies and the Treasury Law
Enforcement School has been installed in the second floor foyer of
the entrance to the main Treasury Building facing the East Wing
of the White House.
The display was recently shown in the RCA
Exhibit Hall in New York City as a part of an exhibit sponsored
by the Law Observance Committee of the Federal Bar Association.
llitd lidO
F "~I'
O~7
portrays the work of Treasury Agents of the
Bureau of Customs, U. S. Bureau of Narcotics, U. S. Coast Guard,
U. S. Secret Service, and the Internal Revenue Service's Intelligence Division, Alcohol and Tobacco Tax Division, and Inspection
Service, as well as the Treasury Law Enforcement School where
agents receive advanced training in the newest techniques of their
profession.
J}-
TREASURY DEPARTMENT
FOR IMMEDIATE RELEASE
TREASURY DISPLAY PICTURES THE
WORK OF ITS LAW ENFORCERS
A photographic display portraying the activities of the
seven Treasury Enforcement Agencies and the Treasury Law
Enforcement School has been installed in the second floor foyer
of the entrance to the main Treasury Building facing the East
Wing of the White House.
The display was recently shown in the RCA Exhibit Hall in
New York City as a part of an exhibit sponsored by the Law
Observance Committee of the Federal Bar Association.
It portrays
the work of Treasury Agents of the Bureau of Customs, u.S. Bureau
of Narcotics, U.S. Coast Guard, U.S. Secret Service, and the
Internal Revenue Service's Intelligence Division, Alcohol and
Tobacco Tax Division, and Inspection Service, as well as the
Treasury Law Enforcement School, where agents receive advanced
training in the newest techniques of their profession.
The exhibit is scheduled to be on view through the remainder
of this summer.
It is located near the Treasury's permanent
Exhibit Room visited by about 100,000 tourists each year.
000
D-924
TREASURY DEPARTMENT
July 29, 1963
FOR IMMEDIATE RELEASE
TREASURY DECISION ON BALL BUBBIE CHEWING GUM
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that ball bubble
chewing gum from 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.
Notice of the determination will
be published in the Federal Register.
The dollar value of imports of the involved merchandise
received during the period September 1, 1962, through April 30,
1963, was approximately $263,000.
000
TREASURY DEPARTMENT
July 29, 1963
FOR IMMEDIATE REIEASE
TREASURY DECISION ON BALL BUBBLE CHEWING GUM
UNDER THE ANTIDUMPING ACT
The Treasury Department has determined that ball bubble
chewing gwn from 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.
Notice of the determination will
be published in the Federal Register.
The dollar value of imports of the involved merchandise
received during the period September 1, 1962, through April 30,
1963, was approx1roa.tely $263,000.
000
TREASURY DEPARTMENT
July 29, 1963
FOR IMMEDIATE RELEASE
DEPUTY ASSISTANT SECRETARY BRAZER HONORED
Treasury Secretary Douglas Dillon Monday presented the Treasu!
Exceptional Service Award to Harvey Brazer, outgoing Deputy Assistc
Secretary for Tax Policy. Dr. Brazer is returning to the Universit
of Michigan after two years as Director of the Treasury's Office of
Tax Analysis. He will serve as Professor of Economics at the UnivE
sity and Research Associate at the University's Institute of Public
Administration, two posts he held for four years before coming to
Washington o
At the Treasury, he was principal economic adviser on tax polj
In addition, he directed the work of Treasury economists engaged ir
preparing tax plans and programs.
The citation which accompanied the Award reads:
"This award is made in recognition of your outstandin~
contribution to the accomplishments of the Treasury during
the two years in which you have served as Deputy Assistant
Secretary for Tax Policy and as Director of the Office of
Tax Analysis.
"The Revenue Act of 1962, the rev~s~on of depreciatiOl
rules and procedures, and the current tax bill, reflect in
large part programs you initiated, directed, or executed.
"Your performance has been exceptionally able, not on.
in your personal contribution to tax policy and to tax
legislation, but also in achieving and maintaining the higJ
est professional standards in the organization and operati l
of the staff of economists in the Office of Tax Analysis.
"In the matter of legislation and policy, and also in
the matter of administration and research, the Treasury De
ment will bear the stamp of your efforts for many years to
You have upheld the highest standards of professional condl
Your service reflects credit both on yourself and on the
Treasury."
TREASURY DEPARTMENT
--
July 29, 1963
-FOR IMMEDIATE RELEASE
DEPUTY ASSISTANT SECRETARY BRAZER HONORED
Treasury Secretary Douglas Dillon Monday presented the Treasury's
Exceptional Service Award to Harvey Brazer, outgoing Deputy Assistant
Secretary for Tax Policy. Dr. Brazer is returning to the University
of Michigan after two years as Director of the Treasury's Office of
Tax Analysis. He will serve as Professor of Economics at the Univer~
sity and Research Associate at the University's Institute of Public
Administration, two posts he held for four years before coming to
Washington.
At the Treasury, he was principal economic adviser on tax policy.
In addition, he directed the work ;of Treasury economists engag~d in
preparing tax plans and programs.
The citation which accompanied the Award reads:
"This award is made in recognition of your outstanding
contribution to the accomplishments of the Treasury during
the two years in which you have served as Deputy Assistant
Secretary for Tax Policy and as Director of the Office of
Tax Analysis.
"The Revenue Act of 1962, the rev~s~on of depreciation
rules and procedures, and the current tax bill, reflect in
large part programs you initiated, directed, or executed_
"Your performance has been exceptionally able, not only
in your personal contribution to tax policy and to tax
legislation, but also in achieving and maintaining the highest professional standards in the organization and operations
of the staff of economists in the Office of Tax Analysis_
"In the matter of legislation and policy, and also in
the matter of administration and research, the Treasury Department will bear the stamp of your efforts for many years to corne.
You have upheld the highest standards of professional conduct.
Your service reflects credit both on yourself and on the
Treasury."
,oa
.WSI A. H. MDf8PAPUS.
TUMda, • .lull 30, 196~.
AlSULTS OF TUlSURI'1 WIlILY BILL OPrWJD
"ru,
Tn. 'l'ru.ury Uepan..ent. announced lut eYeD1a& tbat U. 'eDdere tor . .
of
T.....VI billa, ODe aer1•• to be an add1t1oa&l 1 __• or tt. bill. dated *1' I, 1963, &I
t.... ot... r Mr1ee t.o be datoed .lucuat 1, 196), ¥bloh wn ott.ract OD .hill' 2k..... ope_
at. the Federal Ile•• n8 BanD OD July 29. t ........... 1rrrt..... ter 11.)00,000,000, 01"
tt.nabou\e, or 91-day billa and tor 1800,000,000, or tbereabouU, ot 181-*7 bUll.
de\aU. ot the t.vo •• rle. are .. t01108l
». ml
91-da7 TNa8UZ7 bU18
_tur1!!1 october
iUIllE}F' ACCEPT1l,O
COMPKnTIVt KIDS.
Appl'OS.
Price
J9.18)
rt1gh
Low
Avenge
99.170
99.175
J.26)1t
98.290
•
Y
98.117
Approx. Iq ,
I\naual ;ate
Pri..
I
I
3.2)2'
3.2W6
-'ur1JW
•
Y.
lrmual Haw
!I
182-*7 Trea.aury bUll
January 30, 196~
I
I
if
98.282
3.)82J
3.~08S
3.398S }/
0,.
aJ i'~cepting one tender ot f)oo,ooo. ~;X0llPt.1DC
tender ot 1100,000
rOO pereut. of ..he _01DIt ot 91-day b
bid lor et the lMr pri...... acc.pt.ed
Ja8 peroeAt of the uount ot 1.62-day billa b1&l tor at. the 1. . pri . . . . . .ecept~
TuTAL 'I'F.NDE:S
APP~';~D
;t~'SKa';:;
Applied 'or
,~
41.,68),000
Ao..eted
')4,68),000
Philadelphia
29,)81,000
14,)81,000
1l1~
22,419,000
D1atJ"1ot
aoetou
Hew Iorit
1,hOu,2~,OOO
Cle.elaad
26,4S7,OOO
At1aata
)0,$73,000
226,56),000
Chicago
at. Louie
f{innaapoll.
"'aMe City
38,022,000
19,961,000
46,269,000
Dell..
SaIl 'ruouco
24,381,000
'rotal
~
F0it um A<.;(;Y.P'l'tl) Bt F'U,)&UL
.
74,137 ,000
$1,967,090,000
DIItaICT8.
'eel!"
"or _
• 12,143,000
1,190,WI6,ooo
8,6)'1,000
6l11,2Wa,OOO
26,457,000
9,S87,OOO
22,kl9,OOO; 1,18Ja,000
L,4)S,00D
26,013,000
166,;63,000
U),1JaO,OOO
Ja,022,OOO
19,1,61,000
)8,269,000
20,381,000
',)$0,000
9,))',000
6~,631.000
U,JOO,S90,OOO
JI
flO, 711),000
651,223,000
3,)91,000
9,Slk,OOO
1,1SJa,OOO
b,4)S,OOO
56,7Jao,OOO
7,350,000
h,9l6,OOO
16,908,000
12,101,000
66.04~.009
_ n,;nI,OOC
,uoo,au,ooo
'.k7',oao
I
Acoee"."
&1,J1S1,94S,OOO
Aft,....
6,419,~
IDalud.. S24S,837,000 DODCC8petUJ.ve tend. . . .ooep\H at the ........ pd• • 1 99.11
Include. $;7,017,000 !IODOGapet!tl" \eaden .ecrept.ecl a' ,he
prt.• ., _.281
on • ooapon 1.a:ue of tbe .... length aDd lor tbe ••• ___ 1~, U. 1'8\1II'D'
the•• bill. would proY1de yielda of 3.).4'. tor the 91-day bill., aDd 3• • ' . t.bI
182-da7 bUl.. lut.el"8et. rate. 0&1 bUlB are q1lOte4 ill Hfu 01 bull: d .....at ..Ub
the retul"I1 related to the face amouat. ot tba bUla paJabl. at. - '....\7 . . . . . tbIII
the uount 1~ and their 1engtth 1ft actual ~ of da711 nlaW \0 • ]6O-dal
yar. In contNR, 71.1<18 OIl o.rtlli_tea, aot.e8, ... taaDU are 01 p.... tn , ...
or iIIteNet on the amount. 1n.,eat.ed, and r.lew \be . . . .1' or days r. rSnt" 1A u
intereat paJIIUtIlt period to t n. a otual rn.ber or cIIr..JW 1D tbe period, Vit.' ~
oo.pound1.ng i t .ore than one coupon period 1a 1.Imtl.....
".;r)p
"
'\,,:
TREASURY DEPARTMENT
FOR RELEASE A. M. NEWSPAPERS,
TuesdaY', July 30, 1963.
-
July 29, 1963
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 May 2, 1963, and
me other series to be dated August 1, 1963, which were offered on July 24, were opened
~ the Federal Reserve Banks on July 29. Tenders were invited for $1,300,000,000, or
~reabouts, of 91-day bills and for $800,000,000, or thereabouts, of 182-day bills.
The
~taUs of the two series are as follows:
lANGE OF ACCEPTED
WETITlVE BIDS:
99.183
High
Low
Average
~cepting
91-day Treasury bUls
maturing October 31, 1963
Approx. Equiv.
Price
Annual Rate
al
99.170 99.175
one tender of $300,000;
:
:
:
3.232%
3.284%
3.263%
182-day Treasury bills
maturing January 30, 1964
Approx. Equiv.
Price
Annual Rate
98.290
98.277
98.282
11
bl Excepting
E!
3.382%
3.408%
3.398%
Y
one tender of $100,000
00 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
OTAL TENDERS APPLIED FOR AND ACCEPI'ED BY FEDERAL RESERVE DIS'l'RIaI'S:
District
AcceEted
Acce12ted
: AEElied For
AE121ied For
:
Boston
$ 44,683,000 $ 34,683,000
$ 12,743,000 $ 10,743,000
New York
651,223,000
1,404,244,000
834,244,000 ••
1,190,446,000
PhUadelphia
29,381,000
14,381,000 :
8,691,000
3,391,000
Cleveland
9,524,000
26,457,000 ••
26,457,000
9,587,000
Richmond
1,184,000
22,419,000
7,184,000
22,419,000
Atlanta
4,435,000
26,073,000
4,435,000
30,573,000
:
56,
7).t0 ,000
Chicago
166,563,000
113,740,000
226,563,000
:
7,350,000
St. Louis
9,350,000
32,022,000
38,022,000
4,916,000
Minneapolis
9,339,000
19,461,000 :
19,961,000
12,708,000
16,908,000
Kansas City
38,269,000
46,269,000
6,479,000
Dallas
9,479,000
20,381,000 :
24,381,000
31
0
San Francis co
66.z043.z000
65 z637.zoo
74.z1371.ooO
•
2 318 z000
Total
$1,300,590,000 sf $1,457,945,000 $ 800,011,000
$1,987,090,000
·
Sf
~cludes $245,837,000 noncompetitive tenders accepted at the average price of 99.175
mCludes $57,017,000 noncompetitive tenders accepted at the average price of 98.282
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.34%, for the 91-day billa, and 3.50%, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
t~ return related to the face amount of the bills payable at maturity rather than
t~ 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 tenns
ot interest on the amount invested, and relate the number of days remaining in an
interest payment period to the a ctual number of days in the period, with semiannual
compounding if more than one coupon period is involved.
D-925
FOR RELEASE ON DELIVERY
STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE
HOUSE WAYS AND MEANS COMMITTEE
ON THE
DEBT LIMIT
MONDAY, JULY 29, 1963
10:00 A.M., EDST
When the Congress last considered the debt limit in
May, it took the rather unusual step of enacting a new
temporary debt limit to extend only through the first two
months of fiscal 1964.
The reason for this action was,
of course, the exceptional degree of uncertainty attached
to any projections of our budgetary position for the entire
fiscal year.
In referring to the $309 billion temporary
debt limit for the months of July and August 1963, your
Committee Report stated:
This is designed to give your
committee and the Congress more time to
consider the appropriate limitation for the
balance of the fiscal year 1964. By the end
of August, congressional action on appropriations can be expected to have progressed to
the point where it will be possible to obtain
a much clearer picture of probable expenditures
for the fiscal year 1964.
By this time also
,it is hoped that the consideration of the
President's tax proposals will have reached
the point where it is possible to more accurately forecast the impact of any congressional
action on revenues for the fiscal year 1964."
n ••••••
D-926
2
Furthermore, the Senate Finance Committee, at the
time of its action on the previous extension, felt that
increasing the debt limit only until August 31, 1963 might
not allow it sufficient time to evaluate the budget situation
for the fiscal year 1964.
It urged that more time may be
needed to determine the level of expenditures resulting from
the appropriations enacted, and "more time may be required
to consider the tax measures now pending in the Connnittee
on Ways and Means."
In deference to this position of both Committees, and
the continued absence of sufficient hard, factual information
on which to base the debt limit requirement for the full
fiscal year 1964, I am here today only to request an extension
of the present $309 billion temporary debt limit through
November 30, 1963.
The progress of the Congress on both appropriations
and the tax bill in the intervening months has not measured
up to the pace hoped for by this Committee.
Only two ap-
propriations bills, covering about seven percent of the
budget, have been enacted, and the tax bill has not yet been
411
3
reported out by this Committee.
In this situation any
estimate of the debt limit required for the full 1964
fiscal year would involve a considerably larger element of
guesswork than has usually been the case.
Fortunately, however, our budgetary position has
substantially improved since I last discussed the debt
limit with you on May 1.
Therefore, it seems wise to
extend the present temporary debt limit for an additional
three months, that is to November 30th, by which time we
are certain to have a much sounder basis upon which to
determine the debt limit requirements for the remainder of
the fiscal year.
Unless new debt limit legislation is enacted, the
temporary ceiling will expire on August 31st and the debt
ceiling will revert to its permanent level of $285 billion.
Current estimates indicate
that the debt will be about
$307 billion on August 31st, $22 billion above its permanent
level.
It is obvious that action must be taken.
I would now like to review with the Committee the
unexpectedly favorable developments during May and June which
4
have given us this extra leeway under the debt ceiling.
A table attached to this statement lists the various changes
in our actual cash position on June 30 as compared to the
estimates given the Committee at the beginning of May.
On May 1, we were estimating a budget deficit of
$8.4 billion.
As you know, the deficit actually turned
out to be $2.2 billion less than this - - $6.2 billion.
The smaller budget deficit was produced by a combination of
receipts almost $900 million greater than we had expected
and budget expenditures more than $1.3 billion lower than
we had anticipated on May 1.
Normally, the differences
between estimates and final results are reasonably well
balanced between those on the down side and those on the up
side;
but in recent months we have had the unusual and most
gratifying experience of finding almost all of the changes
from our estimates moving in the same direction - - toward
a lower budget deficit and an improved cash position.
Of the almost $900 million improvement in our revenue
position, about $400 million was accounted for by receipts
from individual income taxes
an increase largely
5
4,11
.L. v
I
attributable to the fact that the economy expanded at a
faster rate than we had anticipated.
Receipts from
corporation income taxes were also about $300 million higher
than had been estimated.
The remainder of the increase in
receipts, about $200 million, came from increased estate
and gift taxes and miscellaneous items.
Practically the entire $1.3 billion reduction in
budget expenditures from the level estimated on May 1 was
due to decreases in outpayments.
The volume of asset sales
during fiscal 1963 turned out to be very close to the
estimate furnished this Committee by the Budget Bureau in
May.
The major expenditure reductions were in the Defense
Department, the Veterans Administration and the Housing and
Home Finance Agency.
Although Defense expenditures
(:tnc1uding military assistance) turned out to be very close
to the January estimate, they were about $300 million below
the level estimated on May 1.
Veterans Administration
outlays were $200 million lower, and expenditures by the
Housing and Home Finance Agency were $300 million below the
May 1 estimate.
The Director of the Budget, Mr. Gordon,
6
414
will provide further details on the expenditure reductions
and the sales of assets in his statement.
Looking to fiscal 1964, we find that thus far in
July expenditures are running very close to the levels
estimated last May.
There is no indication of any increase
in expenditures, such as might have been expected had any
part of the improvement represented only a temporary
postponement in spending.
In addition to higher budget receipts and lower budget
expenditures, trust funds and other non-budget items added
more to the Treasury's cash balance than had been anticipated.
Net receipts from the Unemployment Trust Fund were $300 million
higher than projected, and net receipts from the Highway Trust
Fund were $100 million higher.
As a result of a number of
other offsetting factors, trust funds and other non-budget
items added a net amount of $200 million to the Treasury's
cash balance over what had been anticipated in May.
To round out the picture, I would like to discuss
recent developments affecting the debt and our borrowing
requirements in the near-term future.
The public debt on
June 30 was $800 million higher than we had anticipated
7
on May 1.
$400 million of this unplanned increase in the
debt came from sales of Savings Bonds and special foreign
issues, neither of which is subject to close control in
response to shifts in our cash balance.
Normally, redemptions of Savings Bonds exceed sales
during the April-June period.
Since Savings Bonds sales had
done better than usual during the first quarter, we assumed
a break-even on Savings Bonds during the second quarter.
However, when the final figures were in, they showed that
second quarter sales had done even better than expected, and,
contrary to the usual seasonal pattern, the net addition to
Savings Bonds outstanding was about $300 million.
This
gratifying second quarter performance of Series E and H
Savings Bonds was the best since 1955.
During May and June, we sold $100 million more of
special security issues to foreign central banks than we
had anticipated on May 1.
The proceeds of these issues
provide us with funds which we can use in the same manner
as any other borrowings;
however, the timing of these
issues is determined solely by balance of payments needs
rather than by ordinary debt management criteria.
8
The remaining $400 million unplanned increase in
our debt occurred in connection with the sale of 4% bonds
of 1970 which were offered to the public on June 11.
Even
at that late date, we were projecting a budget deficit of
$7.2 billion, $1 billion higher than actually occurred, and
the market situation appeared to be exceptionally favorable
for an issue of intermediate maturity.
Our intention was
to raise $1.5 billion with this bond issue.
However, the
issue proved to be even more popular than we or the market
had expected.
In order to prevent a serious speculative
situation from developing in the government securities market,
we felt obliged to make a special over-allotment on subscripIncluding this special over-allotment, $1.9 billion
tions.
of the bonds were sold, $400 million more than originally
planned.
The improvement in our over-all cash position, in which
this very successful June bond offering played a minor role,
has permitted us, contrary to our earlier expectations, to
go through the entire month of July without any cash borrowing
operations.
In fact, our entire third quarter borrowing
program has been scaled downo
On May 1, we were contemplating
9
a cash borrowing need of $6 billion during the third quarter,
including any cash borrowings in June.
It now appears
that our cash requirements can be met with a borrowing
program of only $4 billion, half of which has already been
accomplished by the June issue to which I have referred.
The substantial deviation of the actual budget deficit
from the best estimate that we could make only two months
before the end of the fiscal year clearly demonstrates the
need for a substantial margin for contingencies in establishing a debt limit to cover any considerable span of time.
In this particular instance, all of the differences worked
in our favor.
On other occasions, particularly in those
instances where the economy is growing at a slower rate than
anticipated, the variations from our estimates are likely to
be just as large in the other direction.
I have a very keen appreciation of this fact of life,
because of the 1961 experience.
When I appeared before this
Committee on June 15, 1961, the latest and best information
available to us pointed to a budget deficit of $2.5 billion
for the fiscal year that was to end only fifteen days later.
10
~? l' \/
~
'--.. v
Twelve days later, when I appeared before the Senate Finance
Committee, the continuing inflow of information made it
evident that our projection had been too optimistic, and we
revised our estimate of the budget deficit for fiscal 1961
up to $3.0 billion.
As it turned out, we were still far
from the mark, because the actual deficit turned out to be
$3.9 billion.
When, despite the government's best efforts, it is
possible to miss the mark by as much as $1.4 billion only
two weeks before the end of the fiscal year and by as much
as $900 million only four days before the end of the fiscal
year, it leads one to an acute awareness of both the limitations of budget estimating in an organization as large and
complex as the United States Government and of the need for
substantial operating leeway to deal with contingencies.
Another point which the recent experience demonstrates
is that this Administration can and will keep expenditures
at the lowest possible level, irrespective of the size of
the debt limit.
The fact that we found ourselves in an
unexpectedly improved budgetary position did not lead us to
',-1
11
··!I
a
.:.- ---
cut back on the program of asset sales which we had set out
to accomplish, a program which we know is strongly supported
by this Committee and the Congress.
The fact that we found
ourselves with somewhat more room under the debt limit than
we had contemplated did not lead us to increase expenditures.
Although the improvement in our revenue position would have
permitted a rise in expenditures under the debt limit
established by the Congress, expenditures actually declined.
This experience should provide substantial assurance that an
adequate allowance for contingencies under the debt limit
will not be abused.
At the last hearing, the Committee found it useful to
have daily cash and debt projections available when it sought
to establish a debt limit covering only a relatively short
period into the future.
For this reason, we have attached
our latest daily projections covering the period through
November 30.
You will note that the present $309 billion debt limit
will provide us with a leeway of about $1 billion during
September and early October.
From October 15 through
November 14, however, the margin under the debt limit will
fluctuate between $200 million and $700 million.
12
The projections indicate that on November 15 the debt
will rise to $309.3 billion with a cash balance of only
$4.3 billion.
During the latter part of November, prudent
debt management requires a rise in the debt to $310.1 billion
on November 30, in order to build up the larger cash balances
needed to meet the large outflows that are characteristic of
early December.
It is apparent from these figures that we cannot assure
the Committee that we will be able to operate throughout the
entire month of November under the present $309 billion debt
ceiling.
We would hope that new debt limit legislation
could be enacted by mid-November.
The narrow margins under
which we will be operating can only be accepted because of
the shortness of the period for which this debt limit extension
is requested.
In summary, we are not yet in a position to formulate
with reasonable accuracy a debt limit request designed to
cover the entire fiscal year 1964.
Since our improved
budgetary and cash position will allow us to operate under a
$309 billion debt ceiling for 2-1/2 to 3 months longer than
13
we had expected, I recommend a simple three months extension
of the temporary debt ceiling at its current level of
$309 billion.
Finally, in view of the fact that I am not asking for
any extension of the debt ceiling beyond November 30 or any
increase in the present $309 billion temporary debt limit,
I have not included any conjectures concerning the limit
that will be necessary beyond November 30 to cover the
remainder of the fiscal year to June 30, 1964.
Such an
estimate is not necessary to action by the Congress on this
request.
To inquiries concerning that figure, I can only
reply that it will be substantially below the $320 billion
figure so frequently mentioned as a minimum at the time of
the previous action.
ACTUAL TREASURY CASH POSITION AS OF JUNE 30, 1963
COMPARED WITH ESTIMATE PREPARED FOR DEBT HEARINGS
_BEFORE HOUSE WAYS AND MEANS COMMITTEE APRIL 26 AND MAY 1, 1963
Estimated
in April
Actual
Increase
8.0
305.3
11.1
306.1
+23.9
-24.0
-1.4
+2.1
+24.7
-22.7
-1.2
+2.9
--.JL
+.6
+3.7
3.1
8.0
11.1
Attrition ...... " .................... .
Bills ............................... .
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June Tax Bills " ..................... .
June Borrowing •••••••••••••••••••••••
Saving s Bonds ....................... .
Foreign Securities ••••••••••.•••.••••
Special Issues ..•••••••••••••.•••••.•
-1. 0
+1.2
+.3
-2.5
+1.5
+2.6
-1. 0
+1.2
+.3
-2.5
+1.9
+.3
+.1
+2.6
Tota 1 ......... " ..... .
+2.1
+2.9
30, 1963 ••...•
305.3
306.1
Cash Balance (excluding Gold) ••••••••••••
Debt Sub j ec t to Limit ••••••••••••••••••••
3.1
~
Reconc ilia t ion:
Actual Cash Balance March 31, 1963 .•
7.4
Items affecting Cash Balance
(April 1 - June 30):
Net Budget Receipts ••••••••••••••••••
Budget Expenditures ••••••••••••••••••
Trust Funds etc. (net) •••••••••••••••
Change in Public Debt ••••••••••••••••
Total
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
g
Cash Balance June 30, 1963 .............. .
Actual Debt Subject to Limit
March 31, 1963 ..••..•..•.•......
Net Changes (April 1 - June
Debt Subj ect to Limit June
.9
1.3
.2
303.2
30):
.4
.3
.1
=
.8
Figures are rounded to nearest $100 million and will not necessarily
add to totals.
Ma·or reasons for cash im rovement from A r i l l to June 30
(In billions of dollars
Budget Receipts
Individual income taxes ••••••••••••••••••••••
Mostly in the withheld area - income levels
higher than anticipated
+.4
Corporation income taxes •••••••••••••••••••••
Reflecting a higher level of taxable
corporate profits for the calendar year
1962 than had been estimated in January
+.3
All other (net) ••.••••.••••••••••••••••••••••
+.2
Total increase in Budget Receipts ••••••••••••••••••••
.9
Budget Expenditures
Defense Department (including military •••••••
assistance)
-.3
Atomic Energy Commission •••••••••••••••••••••
-.1
Veterans Adminis tra tion .•• " •• "." ••••• "".".....
-.2
Commodity Credit Corporation •••••••••••••••••
-.1
Housing and Home Finance Agency •.•.••••••••••
-.3
All Other (net) .............................
-.3
e
Total decrease in Budget Expenditures •••••.•••••••••• 1.3
Trust Funds, etc. (net)
Unemployment Trust Fund ••••..••••••..••••.•••
Quarterly Deposits by States were much
heavier than expected in May; withdrawals
by States were lower than anticipated
+.3
Highway Trus t Fund •.••.•••••••••••.••••••••••
Payments to States in May and June were
lower than anticipated in view of
commitments expected
+.1
Ot h er .................
e e e
Due to a combination of miscellaneous
factors, such as an increase in investment
transactions of Government sponsored enterprises, a decrease in deposit fund accounts
and a decrease in checks outstanding
-.2
0
••••••••••••••••
$
•
8
•
Total increase on account of Trust Funds, etc. (net)..
.2
~jor
~
reasons for cash improvement from April 1 to June 30 (continued)
(In billions of dollars)
Public Debt
June Borrowing
•
0
•
•
0
•
•
•
•
•
•
•
•
•
•
•
0
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
••
+.4
$1.5 billion assumed in April;
actually $1.9 billion
Savings Bonds ........
CI
•
•
•
•
•
•
•
•
•
+.3
A break-even of sales (including
accrued discount) and redemptions
was assumed for the April-June
period. Actually, sales exceeded
redemptions.
Foreign Securities ...•.•••...•••••••.•••••..•
+.1
Unexpected sale in-J'tlne
Total increase in Public Debt ••••.••••.••••••.••...
Total Cash increase .••••••••••••••••••••••••••.•.••.••
=
.8
3.1
Esrn.t~'T'-:m
CASH B.<u',ANCE AND DEBT SUBJECT TO LIMIT
DAY-BY-DAY FOR ?~B.ICD .DUX - NOVF:rIt!BER
J 963
(I!Lbil1icns of i -::~ l3.rs)
Day
June 30
1
2
.3
4
5
6
7
8
9
10
11
12
1.3
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
July 1963
August 1963
Cash Bal.
Debt Subj. Cash Bal.
Debt. Subj.
(Excl. Gold)
to Limit (Exel. Gold)
to Limit
11.1 *
306.1 *
306.0
305.9
306.0
I D A
306.0
*
*
*
*
*
*
*
*
305.8
305.8
305.8
305.8
306.1
*
*
*
*
*
7.7 "*
7.5 *
7.4 *
7.2 *
7.0 *
306.0
306.0
306.1
306.1
306.0
*
*
*
*
*
6.9 "*
6.7 *
6.6 *
6.7
6.4
306.2 *
306.1 *
306.1 *
306.1
306.0
6.2
6.1
6.1
305.9
306.1
305.1
11.0
10.7
10.6
0
H
10.0
9.2
8.8
8.5
8.3
8.1
*
*
*
L
*
5.6
5.7
305.1
305.1
5.7
5.3
4.9
4.9
4.9
305.0
305.0
.305.0
305.0
305.0
5.0
5.0
5.2
5.1
5.5
305.0
305.0
305.0
305.3
305.3
5.7
6.1
6.4
6.6
6.8
305.3
305.3
305.2
305.2
305.2
6.7
6.5
6.3
6.1
6.0
306.2
306.2
307.2
300.0
307.1
Y
*
September 1963
Cash Bal.
Debt Subj.
(Excl.Gold)
to Limit
H
0
6.7
6.3
6.0
5.5
4.9
4.5
4.4
4.5
4.6
4.6
4.9
6.1
7.3
8.4
8.9
9.3
9.7
9.7
9.7
9.5
L
I
D A Y
308.0
308.0
308.0
308.0
307.9
308.0
308.0
308.0
307.9
307.9
307.9
307.9
307.9
307.9
307.8
307.8
307.8
307.8
307.7
307.4
November 1963
Cash 3al.
Debt Subj.
(Exel. Gold)
to Li..~it
October 1963
Cash Bal.
Debt Subj.
(Excl.Go1d)
to Li'llit
9.8
9.5
9.2
8.8
307.9
307.9
307.9
307.9
8.0
7.4
7.0
6.6
6.4
307.8
307.8
307.8
307.8
307.8
6.2
6.6
6.4
6.2
6.1
307.8
308.4
308.4
308.4
308.4
5.8
5.5
5.3
5.1
4.9
308.4
308.3
308.3
308.3
308.8
4.6
4.5
4.5
4.5
308.7
308.7
308.7
307.8
i
5.5
308.8
5.5
5.3
5.1
4.9
4.7
308.?
308.7
308.7
308.7
308.7
4.7
4.5
4.4
4.3
4.3
308.7
308.7
308.7
308.7
309.3
4.5
4.7
5.1
5.4
5.6
309.3
309.3
309.3
310.0
310.0
5.7
5.7
5.6
H 0
L
,
5.5
I
310.0
309.9
309.9
D A
310.1
* Aetual
July 29, 1963
Y
- 3 -
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.
Tbe 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
trom 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. 418 (current revision) 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.
421
- 2 -
decimals, e. g., 99.925.
Fractions
~
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.
Banking institutions generally may submit tenders for account of customers
provided the names of the customers are set forth in such tenders.
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 $
less for the additional bills dated
Mar 9 .
2W
or
91- days remain-
' (
Uii)
ing until maturity date on
$
1.000
or less for the
November 7, 1963
) and noncompetitive tenders for
XiiO
182 -day bills without stated price from anyone
biiOX
bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids for the respective issues.
Settlement for accepted ten-
ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on __A_uguat...;:;..._.8~,.1;'1;963;:-_ _ _ , in cash or other immediately available funds or
1tiSh
in a like face amount of Treasury bills maturing August 8, 1963
J(Wj
•
Cash
TREASURY DEPARTMENT
Washington
.ru.q S1, 1913
FOR IMMEDIATE RELEASE,
lBOElOOlHlBDEBJ1Bf'~
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 $ 2,100,000,000, or thereabouts, for
cash and in exchange for Treasury bills maturing
¥i'Jl
August.1963
of $ 2,lOfij31,OOO, as follows:
91
iii
-day bills (to maturity date) to be issued
August
, in the amount
W63
,
in the amount of $ 1,300.,000 , or thereabouts, representing an additional amount of bills dated
Ma¥ 9, 1963
,
J(BOt
and to mature Bovember 7, 1963
amount of $
UJO
ao1,~OOO
, originally issued in the
, the additional and original bills
to be freely interchangeable.
182 -day bills, for $
U4
800~~.000
, or thereabouts, to be dated
:xcaQi
August8,].963
~
, and to mature __F_e_ib_ru81"7_
. . .6"'p-19_"
__
*4
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, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
!enders will be received at Federal Reserve Banks and Branches up to the
Day1:1,ght SaT.1Dg
clOSing hour, one-thirty p.m., Eastel-n!" ••• I:t. time,
Monday', August 5, 1963
(IS)
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100 , with not more than three
TREASURY
DEPARTMENT
z.. .z
_
;
1$
Ii
J4& M
hQlh"·;»
2
g
.•
(Ii"
u
FOR IMMED lATE 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
$2,100,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing August 8, 1963,
in the amount of
$2,100,131,000, as follows:
91-day bills (to maturity date) to be issued
1n the amount of $ 1,300,000 ,000, or thereabouts,
additional amount of bills dated May 9, 1963,
mature November 7,1963, originally issued in the
$801,786,000,
the additional and original bills
interchangeable.
August 8, 1963,
representing an
and to
amount of
to be freely
182-day bills, for $ 800 ,000 ,000,
or thereabouts, to be dated
August 8, 1963,
and to mature February 6, 1964.
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, $50,000, $100,000, $500,000 and $1,000,.000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
up to the clOSing hour,.., one-thirty p.m., Eastern Daylight Saving
time, Monday, August J , 1963.
Tenders will not be
received at the Treasury De~artment, 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.
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. 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
~sponsible and recognized dealers in investment securities.
Tenders
from others must be accompanied by payment of 2 percent of the face
~ount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trus t company.
D-927
69819?
- 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 $200,0000r less for the additional bills dated
1 -days remaining until maturit¥ date on
Ma 9 1963
No~ember 7,'1963) and noncompetitive tenders for ~ 100,000
or less for the 182 -day bills without stated price from anyone
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 Banks on August 8, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing August 8, 1963. 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.
r
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. 418 (current revision) 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.
000
@FedFRASER