Full text of Press Releases of the United States Department of the Treasury : Volume 140

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LIBRARY
Pf10M 50::l0

JUN 1 5 1972

TREASURY DEPARTMENT

United States Savings Bonds Issued and Redeemed TM~ .farther 10, 1963
(Dollar amounts in millions - rounded and will no~ necessarily add to totals)
Arnoun~
• ~ OutGto.ncU
Amount
Amount
Out
s
tand
inr.
zJ
of Amt. 1&81
Issued II Redeemed 1I
WJ\TUREQ
Series A-1935 - D-1941 ••••••••••
Series F & G-1941 - 1950 ••••••••

5,003
28,512

4,990
28,391

13
122

.26
.43

1,829
8,080
13,010
15,lh2
1l,859
5,330
5,022
5,174
5,090
4,439
3,844
4,023
4,578
4,629
4,786
4,594
4,316
4,172
3,899
3,879
3,890
3,740
3,0()l

1,545
6,852
11,032
12,692
9,733
4,153
3,732
3,739
3,590
3,046
2,625
2,686
2,872
2,748
2,804
2,702
2,459
2,213
2,026
1,857
1,652
1,389
575

283
1,228
1,978
2,450
2,126
1,177
1,290
1,436
1,1+99
1,392
1,219
1,336
1,706
1,881
1,981
1,892
1,857
1,959
1,873
2,022
2,237
2,352
2,426

15.47
15.20
15.20
16.18
17.93
22.08
25.69
27.75
29.45
31.36
31.71
33.21
37.27

471
128,795

441
89,165

30
39,630

6.37
30.77

3,670
5,777

1,406
698

2,265
5,079

61.72
87.92

11N'MTUREDJj
Ser188 E:

1941 • ••••••••••••••••••••
1942 • ••••••••••••••••••••
1943 . l • • • • • • • • • • • • • • • • • • •
1944 • ••••••••••••••••••••
1945 • ••••••••••••••••••••
1946 • ••••••••••••••••••••
1947 • ••••••••••••••••••••
1948 • ••••••••••••••••••••
1949 • ••••••••••••••••••••
1950 • ••••••••••••••••••••
1951 • ••••••••••••••••••••
1952 • ••••••••••••••••••••
1953 • ••••••••••••••••••••
1954 • ••••••••••••••••••••
1955 • ••••••••••••••••••••
1956 • ••••••••••••••••••••
1957 • ••••••••••••••••••••
1958 • ••••••••••••••••••••
1959 • ••••••••••••••••••••
1960 • ••••••••••••••••••••
1961 • ••••••••••••••••••••
1962 • ••••••••••••••••••••
1963 • ••••••••••••••••••••
Uno1assified ••••••••••••••••••
Total Series E ••••••••••••••••
Series H (1952 - Jan. 1957) 2/
•••••
H (Feb. 1957 - 1963) •••••

40.6J~

41.39
41.18
43.03
46.96
48.04
52.13
57.51
62.89
80.84

Total Series H •• ~ •••••••••••••
Total Series E and H ••••••••••

9.~8

2.104

7.344

77.71

138,243

91,269

46,974

33.98

Series F and G (1951 - 1952) •••••

I~OfJ8

1~1

11...9.8.

Series J and K (1952 - 1957) ••••
To~al Series F, G, J and K ••••

3,704

857
2,037

1,667

45.01

4,712

2,894

1,818

38.58

33,515
142,955
176,470

33,381
94,163
127,544

135
48,792
48,927

.40
34.13
27.73

iTotal matured •••••••

All Series Total unmatured •••••
Grand Total •••••••••

11 Includes accrued discount.

J.I

Current redemption value.
At option of mmer bonds may be held and
will earn interest for additional periods
after original maturity dates.
Includes matured bonds whioh have not been
.,~Gentcd tor redemption.

BUREAU OF THE PUBLIC DEBT

'Unl.ud ~tatea S&Vlngs Bonds Issued and Redeemed Through November 30, 1963
(Dollar amounts in millions - rounded and will not necessarily add to totnls)
Amount

Issued

Amount,

1I Redeemed 11

Amount

Out.tandin~

J %or Amt.Issued

OutstandinC

'URED

.........

5,003
28,512

1941 • ••••••••••••••••••••
1942 • ••••••••••••••••••••
1943 .a •••••••••••••••••••
1944 • ••••••••••••••••••••
1945 • ••••••••••••••••••••
1946
~ ..•...•...•......
1947
~
1948 • ••••••••••••••••••••
1949 • ••••••••••••••••••••
1950 • ••••••••••••••••••••
1951 • • • • • • • • • • • • • • • • • lit' ••
1952
e ......
1953 • ••••••••••••••••••••
1954
1955 • ••••••••••••••••••••
1956
1957
1958 • ••••••••••••••••••••
1959 • ••••••••••••••••••••
1960 • ••••••••••••••••••••
1961 • ••••••••••••••••••••
1962 • ••••••••••••••••••••
1963 • ••••••••••••••••••••
Unclassified ••••••••••••••••••
Total Series E ••••••••••••••••
aries H (1952 - Jan. 1951) ?( •••
H (Feb. 1951 - 1963) •••••

1,829
8,080
13,010
15,142
1l,859
5,330
5,022
5,114
5,090
4,439
3,844
4,023
4,518
4,629
4,786
4,594
4,316
4,172
3,899
3,879
3,890
3,140
3,OC)l
471
128,795

4,990

13
122

.26
.43

1,545
6,852
11,032
12,692
9,133
4,153
3,132
3,739
3,590
3,046
2,625
2,686
2.872
2,748
2,804
2,702
2.459
2,213
2,026
1,857
1,652
1,389
575

15.47
15.20
15.20
16.18
17.93
22.08
25.69
27.75
29.45
31.36
31.71
33.21
31.27

89,165

283
1,228
1,918
2,450
2,126
1,177
1,290
1,436
1,499
1,392
1,219
1,336
1.706
1,881
1,981
1,892
1,857
1,959
1,873
2,022
2,237
2,352
2,426
30
39,630

41.39
41.18
43.03
46.96
48.04
52.13
57.51
62.89
80.84
6.37
)0.77

3,670
5,777

1,406
698

2,265
5,079

61.72
87092

Total Series H ••••••••••••••••
..
Total Series E and H ••••••••••

9 .. Jili8
138,243

2.104

7 3UL.

77_7'3

91,269

46,974

33.98

eries F and 0 (1951 - 1952) •••••

852
2,037

lh.9R

K (1952 - 1957) ••••

1,,008
3,704

1,667

45.01

Series F, 0, J and K ••••

4,712

2.894

1,,818

38.58

~Total matured •••••••

33,515
142,955
176,470

33,381
94,163
127,544

135
48,792

.40
34.13
27.73

ries A-19J~ - 0.1941
ries F & 0-1941 - 19S0

il • • • • • • • • •

MTURED
u.1•• E:

:J/

·..... .................
• • • • • • IIio • • • • • • • •

• ••• 0 ••••

t} • • • • • • • • • • •

·.....................
• .................... 0

aries J
To~al

28,391

and

Series Total unmatured •••••
Grand Total •••••••••

Includes accrued discount.
Current redemption value.
At option of owner bonds may be held and
will earn interest for additional. periods
after original maturit~ dates.
Includes ~4 ~ wh10b have not been
preoante' tor redemption.

441

48~927

BUREAU OF THE PUBLIC DEBT

40.6/~

UNITED STATES NET HONETARY GOLD TRANSACTIONS WITH
FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS
January 1, 1963 - September 30, 1963
(In millions of dollars at $35 per fine troy ounce)
Negative figures represent net sales by the
United States; positive figures, net purchases
First
Second
Third
Country
Quarter
Quarter
Quarter
196~
1963
1963
Algeria
-15.0
Austria
-3000
-20.0
Brazil
1-16.5
1-28.4
Cambodia
-203
Cameroon Republic
Cent. Afro Republic

---

Chad
Congo (Leopo1dville)
Dahomey
Ecuador
Egypt
France
Gabon
Guinea
-lran
Madagascar
Nauritania
lvfexico
Niger
PeruPhilippines
Republic of Congo
Senegal
Spain
Syria
Tunisia
Turkey
U. K
Upper Volta
Uruguay
Yugoslavia
All Other
Total

-3.1
-08
-203
-.5
-101 3
0

-.7
-5.9

-400
-.1

1-24 .. 9
-07

-1.7
-70 .. 0
- .. 1

-60 .. 0
-.1

-.1

-8.5

- .. 5
1-14.5
1-18.0

1-1.0
1-74.0

1-106.5

-.8

- .. 4

1-8.0
-.4

-.1

-96 .. 1

-100.0

Figures may not add to totals because of

~ounding.

-180 .. 5

TREASURY DEPARTMENT

December 2, 1963

FOR IMMEDIATE RELEASE

UNITED STATES FOREIGN GOLD TRANSACTIONS
FOR THIRD QUARTER OF 1963

During the third quarter of 1963, the net sale of
monetary gold by the United States amounted to $18005
million.

The first quarter showed a net sale of $96.1

million, and the second quarter, a net sale of $100.0
milliono
These transactions brought to $37605 million the
net sale of monetary gold in the first nine months of
this year o
The Treasury's quarterly report, made public today,
summarizes monetary gold transactions with foreign governments, central banks and international institutions for
the three quarters of 19630

(table on reverse side)

000

D-I061

TREASURY DEPARTMENT

December 2, 1963

FOR IMMEDIATE RELEASE

UNITED STATES FOREIGN GOLD TRANSACTIONS
FOR THIRD QUARTER OF 1963

During the third quarter of 1963, the net sale of
monetary gold by the United States amounted to $180 5
0

million.

The first quarter showed a net sale of $96.1

million, and the second quarter, a net sale of $100.0
million o
These transactions brought to $37605 million the
net sale of monetary gold in the first nine months of
this yearo
The Treasury's quarterly report, made public today,
summarizes monetary gold transactions with foreign governments, central banks and international institutions for
the three quarters of 1963

(table on reverse side)

000

D-1061

UNI~LD

STATES t\E7

~:G:~E'iAF.'l.'

FJREIG\1 COUNTKIES ,'\i\D
-

• J 'I.. "1'
..
1-..., t..~~ l'

'
. :~ ,-::- --:1"
, _ I -~ ~'~
,

(JLD TRANSAr-rrONS IDTH

Ir':,~.'·

'"-

','

\TIONAL T'
1

~_ ~c ,', r.~'
_ L

'"")

1'1.TUTIONS

_',' ~

0£ d;)ll,_:.-,~ L.l. __ ~~;-:::.'r £~~~C~ __~'_'l:OY ounce}
~\~b,-H,:ive figurt..:,::;; I:-.;r.:·'-:...,' - 1:": r1e: L :.." ,>.:::~ by the
_____
U_n_i_t_e_~ States: Eosi tiyc fi:£l}re~L-.:r.:C't_ purchases
1 "_ :
._~L~'. ;;ri
Third
(:u~r ler
C01.mtry
Quarter

_____UIl ::

~lll,·:1';

A ~ (.;, E:~ l~ i a

All~tri2

1963

; '.. ()3

.. -- ..... ------------~~~-

-15.0

-2() .. O

•• -; . !

Brazil

f28.4

C -:-'co:::: a
C~~neruon

F~2D1,11)li~~

Cent. Afro

~2ruhlic

Chad

Congo (Leopoldville)
Dchoncy
Ecuador

-3.1
-203

Egypt

-.5
-101 .. 3

France
Gabon

-.7
-208

l:r a.u

-400

,r":-r-"

Phiiip?ines
Rc?ub1ic of Congo
_"

Spain
Sy-::'ia

-.1

Tu~isi2.

Turkey

U. K

-0.:1

f14.5

f106.5

1-18.0

11.0
174.0

-.8
!-8,,0

YugosL::.via
A:'1. Other

Total

'~'.

-.4
~~l

-100.0

Figures ma3t not add to tota]::~ :--;·c::: 1 Jse of rotmding

-18005

F)f{ t-eu.,:.Sj·,a."

D....t:.·Dr 2, 1963

M. N:-tSNP'lHS,

r.ce~I\'... r

'luAsdal.

;, 196).
P.F.StJL'I'~;,)f

TR: .\3un's

w"ji' :1CLl

'J:~ ,- - KI~J

rhernnaury Det'~nt .mtlOlIDCed lut .-niftg t.ht "t.lle tenders lor t.wo eerill. at
b111s, one 3erl~5 t,o be an additional 188118 0.:1' ~(,ne oil1fl dated Jep~b81" S,
17' 3, ;md t.be ,)~r 58r1cs to he dated
5, 196~), ~-t:icl': ~ere :)!'t"red CD t(ovather 27, were opened at tt)f~ federal Ile""e BalIk. on Decer.!t~r 2. Tenders ·~re 1nY1W
tor :1,)00,000,000, or tt.p.reliliout.s, ot 91~ bUls anrl ,~r rr }J,~);.),)X),r t.nana.,.
.:It l{'~ ..day b1l15. rlle det.aila ot the \wo &eNS are a,.:') f()U·.hiS e
["~!sury

JaG."'!'

".:' •. J~' ~CC:'I''j?D
C·:'lv.? -r rnv" .11'; ':•.'1

High
Low
~ft"-

91-dq Treasury bln.
te&t.ur1ng MiU'cll S. l~

...

Apprca.U1.,.

Price
99.11)

99.10,

If;2-da.YLn!I>l'JU!7' bJ.l.h

l!?tur1.n~" JUAe 4. 12~
!PtJrox. ;;qu!Y.

_____,!yi.£!1_

\nllllal Rate

3.S~~

99.107

9{'-.151.

3.S49':':
).S3U }/
t

j'i: .1}<,

'EI

9r .11..5

·'.nn.a1'.ate
).~51,t

).661'
).67(H

t:.xoept1nl one tender ~!-lI)O, 0001 !I boepUng t,\d tenders t.(~tK.,ll~· 2\.10,000
U; of the arxant of 91-dq bUl.5 bid tor a\ t.be lo..: tlrioe ws aC09t1t.ed
5,~ or ~ ..aunt ot 182-day b1lla bid tor at, the l~: r,rice was ~ceptAtd

D1atriO\
Bonoft

New York
PhUlldll.ph1a
ClAmtl.ADd
fdctaJDd
t·t.1<lnta
Cr,iOago
. ;t. Lau1,
:-tinneapol.15
Kansa5
'1all~s

City

,:'a.n l-"ranclsco
TOTALS

AP.21ied 'For
$
2),19S,OOO

1,39),095,000

28,632,'))0
26,166,000
1),606,000

24, Qr;2,OO)

233,298,000
29,526,000
22,805,000
)0, S88, 000
2l,7e2,OOO
60, 864.iJ,9f>
$1,909,7)1,000

Acoep\.e4
¢

l),l$S,CXlO.

e90,OlS,OOO

13,6)2,00J s
26,168,000 t
1),606,000,

24,052,000

110J~8,OOO

2),696,000,
21,875,000:

»,S88,OOO,

16,6S2,000

?6a9i4.0'J0:
$l,)OO,421,tXlC)

':'<i',pl1ed ;01"
f'C!!Rted
18,228,000~· 18,228,000

1,0)1,870,000
7,62B,CYJO
7,)24,'XY)
2,'-"h,OijQ

a,35S,OOJ

614,870,000
2, 626, cx»
7,)24,000
2,~,OOO
7,J5;,~

lo),49S,JOO
19,408,0(()

4),69S,OOO

7,2S4,'.JJO
7,292,000

7,191,000

10, 919, t)QO
62, 000. {)OO
1.1,313,037,00:)

17,933,000
6,1S4,OOO
7 ,al9,~

64t4°o,0C!
$800,117,oooj

".107

of Includes $220,Sl~S,OOO nol'lCCIIpeU"" tenders aooept.ed t:ti#he -rwerage ;Jrlce of
I.neludes ,~54,ege,OOU nOftCOlRpet,1t,lve t,e1'iC:lln . . .,Pted ::'l.t. the ~vera~~e ;Jrlce of 98.116
'.n a C'1\lp~ issue of tJ1e 0 ' " length and tor the Q.m<; ",.a;Junt in'lie~l'.,~, U'At ret.Uft"

d'/

these bills would ,)rovlcie y1elda ot J.62~, for \be :11-d!\Y bills, and 3.8:-f~, for til
lt2-da.y b1Us. In~st. rates 011 bills aN quoted in lA!rnID of bank 1.acou.n\
tt... J"f9t.unl related t,!l the tace aaount of the b1U;;'!>;i<i'OUJ at mat.;~!r1t.;y r'itrwl" _
the aIIOWlt. 1n,'ested an.:i. their length in actual mlPlt'@r of d~' 3 related t..o a J6O-4tJ
year. In contrast., yields CJn cert.1t1cawe, note.. , ~:'!1d h~n(.~; ~ CORlputrzcl in . . .
of in~rest. an t.be aaawrt, lnv~5ted, aDd nla\e td.e "'t',)Jr,tiCr of ds,; IS ~ 1ft.
i::'i."J"est, pa.,'VIQIent. neriOd t.o t.he actual ..-her t)f cays 111 th6 period, wit!'> ~1 __
f:Y!, '..>Und.ing if -ore thm one OOU~jon ;.:-eriod 1s lDYo1YeCl.

wi_

TREASURY DEPARTMENT

)R RELEASE A. M. NEt"lSPAPERS,
lesday, December 3, 1963.

December 2, 1963

RESULTS OF TREASURY'S 1t1EEKLY BILL OFFERING

The Trensury Department announced last evening that the tenders for two series of
reasury bills, one series to be an additional issue of the bills dated September 5,
96), and the other series to be dated December 5, 1963, which were offered on Novemer 27, were opened at the Federal Reserve Banks on December 2. Tenders were invited
or $1,300,000,000, or thereabouts, of 91-day bills and for $800,000,000, or thereabouts,
f 182-day bills. The details of the two series are as follows!
A.~;GE

OF ACCEPTED

OMPETI1'lVE BlrS:

Hieh
Low
Average

a/
-

91-day Treasury bil1~
maturing March 5, 1964
Approx. Equiv.
Price
Annual Rate
99.113 a/
3.509%
99.103 3.549%
99.107
3.531%

182-day Treasury bills
maturing June 4, 1964
Approx. Equiv.
Price
Annual Rate
3.651%
98.154 £/
98.138
3.683%
98.145
3.670%

Excepting one tender of $100,000; b/ Excepting two tenders totaling $200,000
7% of the amount of 91-c1_ay bills bid for at the low price was accepted
5% of the amount of 182-day bills bid for at the low price was accepted

')TAL TENDERS APPLIED FOR AND ACCEPrED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Phila.delphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
Accepted
Acce,eted
A,Eplied For
$
18,228,000 $ 18,226,000
$
$
13,195,000
23,195,000
890,015,000
614,870,000
1,037,870,000
1,393,095,000
7,628,000
2,628,000
13,632,000
28,632,000
26,168,000
26,168,000
7,324,000
7,324,000
13,606,DOO :
2,6<t.,000
2,604,000
13,606,000
24.,052,000
24,052,000
8,355,000
7,355,000
170,648,000
103,495,000
233,298,000
43,695,000
19,408,000
29,626,000
23,696,000
17,933,000
7,254,000
22,805,000
21,875,000
6,254,000
0
0
7,892,000
3
,588,000
3 ,588,000
7,797,000
16,852,000
10,979,000
23,782,000
7,029,000
82 z000z 000
60 z 884 z000
56 z 094 z000
64 z400z000
$800,117 ,000 ~
$1,909,731,000 $1,300,421,000 sf $1,313,037,000
Includes $220,545,000 noncompetitive tenders accepted at the average price of 99.107
Includes $54,898,000 noncompetitive tenders accepted at the average price of 98.145
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.62;.6, for the 91-day bills, and 3.80%, for the
l82-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 paJment period to the actual number of days in the period, with semiannual
compounding if more than one coupon period is involved.
D-I062

FOR RELEASE:

UPON DELIVERY

STATEMENT OF THE HONORABLE JOHN C. BULL ITT
ASSISTANT SECRETARY OF THE TREASURY
AND

U.S. EXECUTIVE DIRECTOR
INTERNATIONAL DEVELOPMENT ASSOCIATION
BEFORE THE SUBCOMMITTEE ON INTERNATIONAL FINANCE
OF THE HOUSE CONl1ITTEE ON BANKING AND CURRENCY
ON LEGISLATION AFFECTING
THE INTERNATIONAL DEVELOPMENT ASSOCIATION
DECEHBER 3, 1963, 10:00 A.H. EST
Hr. Chairman and Members of the Committee:
It is a pleasure to appear before you today in connection
,nth the participation of the United States in an important
increase in the financial resources of the International
Development Association (IDA).

The legislation before you

Vlould authorize the United States to subscribe its proportionate
share of this increase.
The national Advisory Council on International Honetary
and Financial Problems 1.1aS considered and reported on tilis
matter, and has strongly recommended early and favorable action
by

t~e

Congress.

Copies of its report are before you.

Today's request is for authority uhich uould permit

Lle

United States to participate with sixteen other economically
advanced members

0:(

IDA in an increase of $750 million in the

Association's hard currency resources, to be paid in over a

- 2 three-year period, beginning in fiscal 1966, at the rate of
$250 million a year.

comp~rison

with the annual payments

initially subscribed to IDA, the present proposal means an
increase of t\vo-thirds in the amounts we and these other
countries are

providin~

for use by this effective, multilateral

institution.
Action on this matter is required now, because the
Association will verv shortl" exhaust its authority to make
.J

credit commitments a3ainst its existing subscribed resources.
T~ese

present resources are still in the process of being paid

in under a five-year schedule, ,7ith the final payment falling
due in November,
uitl1

\,!~lich

196L~.

TlrL1s, \;rllile IDA currently has funds

to make disbursements on cormnitments already made,

it needs prompt assurance of the future availability of new
funds if it is to continue to make ne,v corrnnitments.

Although

authorization for our participation is required now in order
to permit IDA to continue operations, no appropriation of funds
\muld be required until fiscal year 1966.
Structure and Operations of IDA
I \'lOulCl like to revie\v briefly the nature of the International Development !ssociation and its accomplishments to
date.

IDA came into existence in September, 1960, as an

- 3 -

affiliate of the Uor1d Bank, and is located here in Washington.
Any member country of the Horld Bank may join the Association,
and as of November 30,1963, 90 of the 101 members of the Bank
were also members of the Association.

IDA has no staff separate

from its parent institution; instead, for reasons both of
economy and coordination, the regular VJor1d Bank staff performs
IDA's loan appraisal and other functions, and IDA reimburses
the Bank for these services.
Executive Directors,

~'7hich

Similarly, IDA's Board of

oversees day-to-day operations,

consists of the Hor1d Bank's Executive Directors serving
~

officiis.

The senior policy body of IDA, the Board of

Governors, consists of the IBRD Governors of IDA member countries,
also serving

officiis.

IDA's membership is divided into two categories:

the

Part I countries are the economically advanced countries of
the free world and supply the great bulk of the Association's
hard currency resources, while tl.1e Part II countries are the
developing nations, ~'Jhich are the recipients of IDA's credits.
Hernber countries initially subscribed to IDA in approximate
proportion to their subscriptions to the International Bank,
end voting strength is based on the relative size of
subscriptions.

Part I countries are required to pay their

- 4 entire initial subscriptions in convertible currencies, whereas
Part II countries are required to pay 107. of their initial
subscriptions in convertible currency and the remaining 90% in
local currency which may not be used outside the member country
without its permission.

Total subscriptions as of November 30,

1963, were $984.4 million, of which $766.9 million was due in
convertible currency and $217.5 million in restricted local
currency.

Initial subscriptions were made payable in five

annual installments, the fourth of which fell due on November 8.
The subscription of the United States to IDA amounts to $320.29
million, on lrilich $258.6 million has already been paid in.
IDA makes credits for the same general purposes as the
World Bank, but its terms differ sharply from those carried by
the World Bank's loans, which are now at 5-1/2% interest and
for periods up to about 25 years.

All IDA credits are made for

a term of 50 years, and bear no interest, but carry a service
charge of 3/4% per annum.

There is a lO-year grace period on

repayment of principal; in the next ten years, 1% of principal
is repaid annually; and in the final thirty years, 3% of
principal is repaid annually.
Out of its total lendable resources in hard currency of
just over $750 million, IDA had committed $554 million on 42

- 5 credits in 13 countries by November 30, 1963.

Disbursements

as of that date were approximately $115 million.
A major part of IDA's commitments has gone to projects
in Asia and the Hiddlc East.

Latin America has been the next

largest recipient, followed by Africa and Europe.

Tile

European activities of IDA have been confined exclusively to
Turkey.
Need for Finance on IDA Terms
T:"e external public debt of developing countries more
than doubled between 1955 and 1961.

IImvever, this dramatic

increase was not matched by a comparable increase in the
foreign

e~:cllange

servicing burden.
a cli1efiIDla.

earnin[js required to meet this heavier debt
The developing countries are thus caut';ht in

On the one hand, they can incur further debt on

conventional terms, uhich in most cases vlOu1d be imprudent in
t~le

1i2:1t of tileir over-all debt servicing capacity and ,",auld

have adverse repercussions on t:le stability of the international
monet2.ry system.

On the

ot~ler

hand, they can curtail sharply

t:le inflou of external resources, "tIhich may slow
reverse

th:.~

do~"'l1

or even

fOr'iJ-ard motion of their development, Hith dangerous

political and social consequences.

- 6 IDA was established three years ago as one way of
mobilizing the resources of the economically advanced countries
to alleviate this dangerous situation.

Many of the developed

countries recognize the seriousness of the problem of
accumulation of short-term, high-interest debt by the developing countries.

They are - increasingly - providing funds to

finance development at a cost the developing countries can
afford.

One of the most effective ways we can get other

countries to share in this effort is by this proposed increase
in IDA resources, although IDA can only meet a portion of the
demand for development funds on appropriate terms.
Details of the Proposal
In brief outline, the proposal recommended to the IDA
Governors by the Executive Directors in their report of
September 9, 1963 is for an increase of $750 million in the
hard currency resources of the Association, such increase to
be entirely paid in by seventeen Part I countries over a threeyear period commencing in FY 1966.

The Part II countries

have no part in this increase in capital.

~..;rill

Compared with the

initial subscriptions to the Association, which are being
oaid
over a five-year period, the new' resources represent a
..
tvlo-thirds increase in the annual volume of funds being made
available.

- 7 Except in the case of Belgium and Luxembourg, the new
resources take the form of additional contributions to IDA,
without voting rights, rather than subscriptions which would
carry voting rights.

The U.S. already enjoys over a quarter

of the total voting power, and this favorable position will
not be significantly changed.

Belgium and Luxembourg, which

have not previously joined IDA, are now doing so, and half
of their participation in the new resources will be considered
as their initial subscriptions with voting rights and the
other lla1f -;,Ti11 be on the same non-voting basis as the remaining
participants.
The

s~1are

of the United

~tates

in the net'] resources is

$312 million, or 41.6% of the $750 million total.

This

represents a slit;ht reduction from our 43% share in the initia.l
su~scriptions

to the Association.

increase in tile shares pledged
Italy, Japan, and 5ueden,

~lhi1e

b)7

There has been a significant
Canada, France, Germany,

at tile same time there were

significant reductions in the sl1ares of the United Kingdom and
t~e

Netherlands.

These

c~anges

are a reflection of changed

conditions in t~c countries concerned since the initiol
subscriptions were B3rced upon and provide a sounder ~asis for

- 8 the future.

South Africa also reduced its share significantly.

KU'tl7ait, which was not initially a member of IDA, joined as a
Part I country on September 13, 1962, but is not participating
in the new contributions.

The shares of the other Part I

countries sho't-J only minor variations from their initial
subscriptions.

The attached table shows amounts and shares of

each Part I countryrs initial subscription and their participation
in the proposed new resources.
The understanding among the participating countries provides
that no country r S commitment

~l7i1l

become effective unless twelve

of the seventeen contributors, representing $600 million of
the $750 million total, agree by March 1, 1964, to make their
contributions on the proposed terms.

By the terms of the

resolution, however, the Governors of IDA must vote by
December 31 of this year to authorize the Association to accept
the resources to be provided by the Part I members.

Eight Part I

members (including one major contributor -- France), with
contributions totalling $122.1 million, have already acted
favorably on the proposal.

Although the Executive Directors

may extend either of the above dates if necessary, IDA's need
for an early assurance of additional funds argues for prompt

- 9 -

action within the specified deadlines, in order to avoid an
interruption in the smooth flow of IDA's credit activities.
The Proposed Legislation
The bill before you

~vou1d

amend the International

Development Association Act in order to provide for three
things.

First, it

~vou1d

authorize Secretary Dillon, as U.S.

Governor of IDA, to vote in favor of an increase in the
resources of the Association.
required by December 31.
agree, on

be~alf

million to the

This is the vote that is

Second, it Vlould authorize him to

of the United States, to contribute $312

~ssociation

as the U.S. share of the increase

in resources, and would authorize the appropriation of that
sum, without fiscal year limitation.

Finally, it would

eliminate existing language 'tvhich limits the issuance of
non-interc;st bearing notes to the amount of the initial
subscription of the United States.

This is necessary to permit

tbe United States to substitute non-interest bearing notes for
t~e

new resources until IDA actually requires cash for

dis8urSCIllent, and thereby to miniIllize the cost to el.e Treasury
of tLlis contribution.
I

'PiS:-'l

":0

L (:- ClllP:l;}sizC'

t~,at

tIlE:

authority being reques ted

todwT for IDA does not carry with it any requirement for an
J

- 10 inunediate appropriation, and vli1l not impose any budgetary
burden during the next fiscal year.

No payment is required

until fiscal 1966; assuming enactment of the authorizing
legislation we are now seeking, an appropriation request will
be presented in January, 1965 as part of the 1966 Budget
Hessage.
Advantage of IDA to the United States
No discussion of IDA can be complete if it omits
reference to a fundamental fact:

IDA, like no other multi-

lateral institution, mobilizes substantial amounts of development funds from the other advanced countries for lending on
terms that are [u11y adapted to the needs of t'l1e developing
countries.

For every dollar the United States has put up of

the initial subscriptions, ot1.1er Part I countries have put up

$1.32.

For every dollar the United States will put up in

additional resources, other Part I participants will put up
$l.t~O.

bot~l

cases, the funds of others are contributed to

IDA on exactly the same terms as the U.S. funds.

For some of

t:'1e sma11cr countries, IDA is the only mechanism through vlhich
tl1ey cn2a[;c in any siGnificant amount of foreign development
lending, and therefore IDA :is the only technique we have z.vai1ab1e
for getting these countries to share the aid burden with us.

- 11 -

Conclusion

Mr. Chairman, much of the impetus for the establishment
of IDA originally came from the Congress itself and the
Congress has reaffirmed its confidence in the institution
through annual appropriations for our initial subscription.
The United States has in the past assumed a position of
leadership regarding IDA, and has done so again in playing
the major role in obtaining the agreement of others to this
substantial augmentation of the Association's resources.
t~lerefore

urge that you act favorably on this bill.

Thank you, Hr. Chairman.

PROPOSED PARTICIPATION IN INCREASE OF IDA RESOURCES
[In millions of U.S. dollars and percentagea
Initial resources
Country
fotal

Annual
rate

10 18
5.04

4.04
1.01

Proposed amount of
new resources
Total

Annual
rate

19.80
5.04
16.50
41. 70
7.50
2.298
61. 872
72.60
30.00
41.25

6.60
1.68
5.50
13.90
2.50
.766
20.624
24.20
10.00
13.75

Percent
share of
initial
resources

Percent
share of
new
resources

2.72
0.67

2.64
.67
2.20
5.56
1.00
.31
8.25
9.68
4.00
5.50

Australia
Austria
Belgium
Canada
Denmark
7inland
France
Germany
Italy
Japan
Kuwait
Luxembourg
Netherlands
Norway
South Africa
Sweden
Uni ted Kingdol:l
United States

37.83
8.74
3.83
52.96
52.96
18.16
33.59
3.36

7.57
1.75
.766
10.59
10.59
3.63
6.72
.67

27. 74
6.72
10.09
10.09
131.14
320.29

5.55
1.34
2.02
L .02
26.23
64.06

.75
16.50
6.60
3.99
15.00
96.00
312.00

.25
5.50
2.20
1.33
5.00
32.20
104.00

3.73
0.90
1.36
1.36
17.66
43.12

.10
2.20
.88
.53
2.00
12.88
41.60

Total

742.72

148~56

750.00

250.00

100.00

Note:

Detail may not add to totals due to rounding.

5.09
1.18
0.52
7.13
7.13
2.45
4.52
0.45

- 3 -

and exchange tenders will receive equal treatment.
for differences

bet~en

Cash adjustments will be made

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

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 herea.:rter 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

19~

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.lY
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.

- 2 -

decimals, e. g., 99.925.
be

Fractions may not be used.

It is urged that tenders

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.
Innnediately 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
ing until maturity date on
$100,000 or less for the

September 12, 1963

March 12, 1964

, ( 91

2~OO

days

~n-

i{lijAX

) and noncompetitive tenders for

XWX

182 -day bills without stated price from anyone
~
tet")X
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 Reserre
Banks on

Decembe~ 1963

,in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

December 12, 1963

•

Cash

TREASURY DEPARTMENT

Washington
December 4, 1963

FOR IMMEDIATE RELEASE,

xxxxyxxxyxyxyxxxarxxncxxxxxxyxxxxxx
TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invi tea tenders for two serie:

tffX' 000 , or thereabouts, tor

of Treasury bills to the aggregate amount of $ 2,100

cash and in exchange for Treasury bills maturing December 12, 1963 , in the amount

of $ 2,101,041,000 , as follows:

(ci{):

91 -day bills (to maturity date) to be issued December 12, 1963 ,
XW
~
in the amount of $ 1,300L200,000 , or thereabouts, represent-

p:j
ing an additional amount of bills dated September 12, 1963 ,
and to mature

xoo:

March 12, 1964
, originally issued in the
an a ·tiona1 $100,092,000 was issued October
, the additional and original bills
l~

.----':...,..,~.-----'~

to be freely interchangeable.
182

X(@

-day bills, for $

800,?~00

December 12, 1963
~

, or thereabouts, to be dated

, and to mature

June 11, 1964
----~~C=f~----

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 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 Standard t:iJne,

Monday, December 9, 1963_

xtfi1Each

Tenders will not be received at the Treasury Department, Wa.shington.

tender

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

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

December 4, 1963

TREASURY 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 December 12,1963, in the amount of
$2,101,041,000, as follows:
91-day bills (to maturity date) to be issued December 12, 1963,
in the amount of $1,300,000,000, or thereabouts, representing an
additional amount of bills dated September 12, 1963, and to mature
March 12, 1964, originally issued in the amount of $799,974,000 (an
additional $100,092,000 was issued October 28, 1963), the additional
and original bills to be freely interchangeable.
l82-day bills, for $800,000,000, or thereabouts, to be dated
December 12, 1963, and to mature June II, 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 Standard
time, Monday, December 9, 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
provided the nanles 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 incoI~orated 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.
~ustomers

D-1063

- 2 -

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
September 12 1963(91~ays remaining until maturit¥ date on
March 12,1964)
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 December 12,1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 12,1963.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 auth~rity.
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 i:3 not considered to accrue until such billa 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 rN'
any Federal Reserve Bank or Branch.
000

f'I:lR RAl&l:J& A.

ruB'.

j-l.

~~?AF~RS,

DI ••

n.e.beJt 10. 196).
RaULfS Of nIASUflJ'S

. . u tiLL

'II' '.

196j

Qf'PUIIQ

..u.

'fbi 'l'NUU"f o-p""'" .......d J..A ""'11 ~.t._ t,eader. tor Wo
If
TN... ,
GIll Mrie. to be ... lIddl"aaal ••••. 01 U. bllla dat.ed sept_. lie .
196), .... tile oUIer _r1u \0 . . . . . . . 1)1.1. 'M.I" 12, 196), "-1- _n ott.... . . . . .
bel" 4, .... op • • • •, \be J1JIden1 ....... luke _ n....... 9. 1'...." . , . lMiW,
tor $1,]00,000,000, .. tJIIa......u, of ~ _llla eM tor ~,OOO,.OO, GIl" \t • • •
or 18. . . . bWa. !he"M11a 01 t,ba two ....s... an .. ft1,lowa

.ul.,

RAttlS OF ACCIPftD

~PlttITln: BI.n51

91-d.q 'he...." Wla

-\!!1.!1 ...... 12. U6h
AppI'OS.

Pr10e

99.115
)9.111
99.U$

i:cpd...

, . . .1 Rete

).48"

).S~.)S:£

3.500<

I
I
I

•

•
•

•

18t-da;r "'...a17 tdlla

!1\!1'1!1 ",. 11. ~ •
Approx..
rrs... _ A!!!J!l !Itt
98.1;1&

).6SU

9I.lJt,

l.662~

".ILl

3.665-

68' of \be . . . ., 01 9l-da.T bUU bt.d tOl' at; t.be low prtee vas ....Vted
)' or \be . . " , ot 182-da1 b1lle b1d tor a' U. low priee waa . . .pW

TREASURY DEPARTMENT

RElEASE A. M. NEWSPAPERS,
December 10, 1963.

December 9, 1963

9dar,

RESULTS OF TREASURY'S WEEKLY BILL OFFERING

The Treasury Department announced last evening that t he tenders for two series of
bills, one series to be an additional issue of the bills dated September 12,
3, and the other series to be dated December 12, 1963, which were offered on Decem4, were opened at the Federal Reserve Banks on December 9. Tenders were invited
$1,300,000,000, or thereabouts, of 91-day bills and for $800,000,000, or t~outs,
182-day bills. The details of the two series are as follows:
~

GE OF ACCEPTED

mITIVE BIDS:

High
Low

Average

9l-day Treasury bills
maturing March 12 , 1964
Approx. Equiv.
Price
Annual Rate
3.489<,t
99.118
99.114
3.505%
99.115
3.500%

182-day Treasury bills
maturing June ll, 19f14
Approx. Equiv.
Price
Annual Rate
98.154
98.147
98.J.h9

3.651%
3.665%
3.662b

68% of the amount of 91-day bills bid for at the low price was accepted
3% of the amount of 182-day bills bid for at the low price was ac~eptpd
~AL

TENDERS APPLIED FOR AND ACCEPTED BY FE:DEf.AL RESERVE DISTRICTS:

)istrict
loston
,~ew York
i>hiladelphia
~leveland

aichmond
,ltlanta
~cago

St. Louis
.'linneapolis
Kansas City
Dallas
San Francisco
TOTALS

Applied For
24,924,000
$
1,521,063,000
31,2(;9,000
29,076,000
14,177,000
32,2ll,000
2e9,709,OOO
34,328,000
21,712,000
28,666,000
29,586,000
119,1 0 3,000
$2,175,8L.7,000

Accepted
AEP1ied For
13,924,000
$
24,113,000
''l>
83h,063,000
1,430,064,000
15,609,000
12,248,000
27,556,000
52,035,000
1h,177,000
3,657,000
25,146,000
15,173,000
191,589,000
113,092,000
2b,064,000
9,913,000
12,212,000
9,396,000
27,491,000
7,667,000
20,266,000
11,511,000
C9,123,000
801,l411,000
$1,300,100,000 ~/ $1,769,010,000
A

·
·

AcceEted
$ 23,768,000
634,249,000
6,048,000
15,729,000
3,657,000
12,173,000
35,018,000
7,713,000
4,796,000
7,270,000
6,511,000
43z834z000
$ 800,766,000

£/

Includes $264,417,000 noncompetitive tend~rs accepted at the average price of 99.115
Includes $73,826,000 noncompetitive tenders accepted at the average price of 98.149
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.59~, for the 91-day bills, and 3.79~, for the
1tl2-day bills. Interest rates on bills are quoted in terms of bar~ 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 n~mbe~ o~ days in the period, with semiannual
compounding if more than one coupon per~od ~s ~nvo1ved.

D-106 6

TREASURY DEPARTMENT

December 9) 1963
TIi2:J..S1JRY /'JJNOUTTCES ISSUP1JC~ OF INSTRUCTIONS FOR OBTAINING
TA.XPAYill IDEnTIFYING NDI"rnrns ON REDEZMED SAVINGS BONDS

The Treasu['~' announced toua: r that instructions are being issued to banks and
other fina:1cial institutions to request o\mers of Series :8, F and G Savings Bonds
on ,.,rllicll any amount of interest is earned to insert their taxpayer identifying
numbers (socis.l security account numbers or employer identification numbers) on
the bonds '.The!1 they are presented for payment be:::;ilU1inc; January 1, 1964.
T'nis action is in furtherance of the Treasury's program to obtain taxpayer
identifying numbers from all recipients of interest paid on registered public
debt securities.
The Treasury is not making it a mandatory requirement at this time that
owners of savines bonds of the three above-mentioned series furnish their taxpayer identifying numbers when redeeming their bonds. Consideration is being
given, however, to the issuance of regulations which would make the furnishing
of the numbers mandatory at time of redemption with respect to E bonds issued on
and after a specified date in the f'llture. (Series F and G Savings Bonds are no
longer on sale.) Applicants for Series H Savings Bonds) the current income c~
panion bond to the E bond, are now required to furnish their taxpayer identi~g
numbers before the bonds are issued.
The Treasury is also giving consideration to a long-range program under which
taxpayer identifying numbers will eventually appear on all E bonds when they are
issued. The present thinking of the Treasury is that this should be accomplished
gradually under a program which would result in minimum impact on the bond issuing
operations of the approximately 19,000 agents who perform the issuing job without
cost to the Treasury. The first phase of the program will cover bonds issued for
Federal civilian and military personnel. The Treasury will also at this time
approve the placement of taxpayer identifying numbers on E bonds upon application
submitted to it by those issuing agents desiring to do so who operate a payroll
savings plan.
The Treasury requests that the ovmers of Series E, F and G Savings Bonds, and
also Series J Savings Bonds, on vhich any amount of interest is earned, who mail
their bonds to the Office of the Treasurer of the United States, Washington, D. C.
20220, or to a Federal Reserve Bank or Branch for payment, write their taxpayer
identifying munbers on the bonds, beloi., and to the left of the seal, avoiding any
printed matter wherever possible.
The Tres.sury will not furnish an annual statement to bond owners showing the
total amou...'1t of interest they received on their E, F, G and J bonds. They should,
therefore, plan to post interest as received in a record of their choice, in orde~
that it may be correctly reported in their tax returns. A form for computing E
bond interest earned each time bonds are redeemed may be obtained from the agent
paying the bonds.
000

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

December 9, 1963

TREASURY ANNOUNCES ISSUANCE OF INSTRUCTIONS FOR OBTAINING
TAXPAYER IDENTI:PYING NUMB~S ON REDEBMED SAVINGS BONDS

The Treasury announced today that instructions are being issued to banks and
other financial institutions to request owners of Series E, F and G Savings Bonds
on which any amount of interest is earned to insert their taxpayer identifying
numbers (social security account numbers or employer identification numbers) on
the bonds when they are presented for payment.beginning January 1, 1964.
This action is in furtherance of the Treasury's program to obtain taxpayer
identifying numbers from all recipients of interest paid on registered public
debt securities.
The Treasury is not making it a mandatory requirement at this time that
owners of savings bonds of the three above-mentioned series furnish their taxpayer identifYing numbers when redeeming their bonds. Consideration is being
given, however, to the issuance of regulations which would make the furnishing
of the numbers mandatory at time of redemption with respect to E bonds issued on
and after a specified date in the future. (Series F and G Savings Bonds are no
longer on sale.) Applicants for Series H Savings Bonds, the current income companion bond to the E bond, are now required to furnish their taxpayer identifying
numbers before the bonds are issued.

The Treasury requests that the owners of Series E, F and G Savings Bonds, and
also Series J Savings Bonds, on which any amount of interest is earned, who mail
their bonds to the Office of the Treasurer of the United States, Washington, D. C.
20220, or to a Federal Reserve Bank or Branch for payment, write their taxpayer
identifying numbers on the bonds, below and to the left of the seal, avoiding any
printed matter wherever possible.
The Treasury will not furnish an annual statement to bond owners showing the
total amount of interest they received on their E, F, G and J bonds. They should,
therefore plan to post interest as received in a record of their choice, in order
that it ~y be correctly reported in their tax returns. A form for computing E
bond interest earned each time bonds are redeemed may be obtained from the agent
paying the bonds.
000

D-1065

- 6 -

factories, the millions of acres of land, the millions of kilowatts
of electric power capacity, the tens of thousands of miles of railroa::ls -- can only be called impressive.

But the B::lnk' s work is not

to be assessed in terms of the building of cold monuments of stone
and steel and concrete; it has a deeper purpose -- to enlarge the
riches of the earth, to give :nen light and warmth, to lift them out
of drudgery and despair, to interest them in the stirring of ideas
and in the grasp of organization and techniques, toward the realizatil
of a day in which plenty will be a real possibility and not a distant
dream."
~at

is the spirit which characterizes the work of the World

Bank -- the spirit we honor with the dedication of this
today -- the spirit

w~ich,

auditori~

today and tomorrow, the World Bank and

men throughout the world will remember and honor as exemplified in
Eugene Black.

- 5,-

enlist the resources of Western capitalism and private enterprise

into the service of the great revolution of our times -- successfully

to help those nations who seek, in years and decades, to overcome

centuries of lost time.

That is the accomplishment and the continuin

effort of the World Bank -- a feat that has already earned a place

in history for the Bank and for Eugene Black.

The great unfinished business that the Bank began under the
direction of Eugene Black.' is still going on -- and will continue~oJ

/yo oj in the same spirit of idealism tempered with reality that

characterize Eugene Black as well as the Bank he guided and nurtured

in its most crucial years.

In his valedictory adress to the Board
'(~;-~ /~~-

of Governors of the World Bank, Ed g bitV2l!!a:ek described that spirit

in words that apply to himself as well as to the Bank.

He said .-

and I quote:

"What the Bank has been able to do is by no means inconsiderab~
in fact, the volume of sheer physical creation -- the scores of

- 4 impressive testaments to _~e vision and persuasive intelligence~

~f EugeI!e B1ack.

For no O.:le played a more decisive role in the

creation of these two institutions than did Eugene Black.

saw --

and he worked unceasingly to help others to see -- that the

needs of the less developed countries were much too large, and

their available resources

@uc~

too small, to be served by inter-

national loans on conventional terms.

In speeches, in talks

with leaders here and abroad, he spoke eloquently and cogently

I~ E. L i
for the creation of a new mechanism designed to meet the over/'

whelming needs of these countries.

His efforts bore fruit in the

IDA.·

One could cite other specific accomplishments of Eugene

Black during his years with the World Bank.

But few accomplish-

ments could be more dazzling, and yet require more keen,

sound and hard-working intelligence, than"~uccessfuI1y

- 3 -

kets of the world as a sound and viable institution.

Mr. Black's

brilliant role in that achievement led to his selection, in 1949, as

President of the Bank -- a position he held for some fourteen years,

It was quite apparent, when

[of the

Ban~?

that the task of

~'tlg8

~reating,

=Black assumed the presidency

a new Europe

:/ropn:l, the

ashes oi

the old would require resources o~ YEar ~ grand'",a scale than those

available to the World Bank.

burden while{

The Marshall Plan took on that enormous

~und-eT th~~dir~ Of~gene~hCk,}

the World Bank

turne"d its eyes and its efforts toward those lands and peoples just
then struggling to!b~ born into the age of industrial technology and
'-"~

achievement.

n&.hOic~:rnore

As events have since proved, the Bank could have made

fortunate for all mankind[!han this

on~

-- nor could

its efforts have been guided rn,Jre wisely or more effectively than

~hey were by Eugene Black.
The Bank's two affiliates -- the International Finance CorporaQ
and the International Development Association -- are particular~

- 2 -

that, more than anyone man, it was Eugene Black who gave it sha~
and direction during its critical, formative years.
Eugene Black's career with the World Bank began in 1947
[iohn J. M:Cloy, then its President, selected
representative on the Executive Board.

hi.;]

wh~

as the American

TIle Bank had opened for

business only the year before, and the problems that it faced

w~e

enormous.

By the end of 1947, the Bank had invested almost all its

available resources in postwar reconstruction loans to countries in
....-~

Western Europe.

1-,,'

The Bank needed funds/::"_, it feededl to open up ~ts~
h,

avenues of credit to ithe world's investment markets, particularly tb
market in this country.

That (was the' task,' that fell primarily upon
~

the shoulders of Eugene Black.
/

His success was pheno'Ilenal.

Largely as a result of his effortS

and skill, the Bank very quickly became accepted in the

capital~r

REMARKS OF TI1E HONORABLE DO~GLAS DILLON
SECRETARY OF THE TREASURY
AT THE DSDICATION CEREMONIES OF THE EUGENE R. BLACK AUDITORIUM
NEW WORLD BANK BUILDING, WASHINGTON, D. C.
M8NDAY, DECEMBER 9, 1963, 5:00 P.M., EST
It was a little over a year ago that Eugene Black addressed the
Annual Meeting of the Board of Governors of the World Bank and
announced that he was attending his last such meeting as an "active
participant."

And it was in respo:l.se to that unhappy news that the

late Per Jacobsson, in saluting

achievements 0f EtlgciIe Black,

assured him "that he will always be welcomed and honored whenever
we assemble in the future,"
This auditorium that we dedicate today is a tangible symbol of
that assurance -- a permanent and public recognition that the

n~e

and the accomplishments of Eugene Black will be remembered and
honored for as long as the Bank itself is alive in the affairs M
memories of men.

0: f / what

For it is impossible to think of the World Ba~

it has been ia~d is and will become -- without being aware
~-

TREASURY DEP AH.'1'MENT
Washington

REMARKS OF THE HON()~ABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT
THE DEDICATION CEREMONIES OF THE EUGENE Ie BLACK AUDITORIUM
NEW WORLD BANK BUILDING ,1rJASHINGTON, D.

MONDAY, DECEMBER 9, 1963, 5:00 PoM., EST.
It was a little over a year ago that Eugene Black addressed the
nnual Meeting of the Board of Governors of the INorld Bank and
nnounced that he was attending his last such meeting as an l1active
articipant." And it was in response to that unhappy news that the
ate Per Jacobsson, in saluting his achievements assured him "that
e will always be welcomed and honored whenever we assemble in the
Jture."
This auditorium that we dedicate today is a tangible symbol of
jat assurance -- a permanent and public recognition that the name
1d the accomplishments of Fugene Black ~.ri 11 be remembered and
)nored for as long as the Bank itself is alive in the affairs or
?mories of men.
For it is impossible to think of the World Bank
lat it has been, is, and \l.7i11 become -., 'lrJitbcollt being aware that.
Jre than any other man, it was Eugene Black who gave it shap~ ~nri
.rection during its critical, formati've years.
Eugene Black's career with the World Ban,k began in 1947 ",hen
was selected as tI,e Americ:;:m repres:::[\'j" ·;,'iE:' ' A ! ' " Executive
lard. The Bank had opened for busiIP Sf oc,l/ i~he :!r, .Ir beforE', ,'r;(!
Ie problems that l.j.~ fAced Vier!? ~norm{)i,'I"3
'P',' the en"! of 1947
1':"
nk had invested almost all of its available reSOL'!':ces in pcn;~\"21~
construction loans to countries in Western Europe. The Bank
eded funds.
It had to open up ave[m~s of credit to the wor 1(1: S
ves tment marke ts, rarticula:dy the [Pc'"
i D ~. i c; ,:::lun try.
~,!, i.
sk fell primarily i.lpOn chE'c8.pable sl-; ..y1:..:'.'.>·' S .,f E:L,~r.ene Blacl 1

His success fJ'las l"henomenal.
LargeL} as a 1:():::'.~;, L of his t , " /.,'.
d skill, the Bank very quickly becan/(' [-;(ct:pted J.n i'll.e capiLl i
("kets of the world 8.5 a sound and vLnhl,~, ;f':::i::-i.i~F'~ ~n. Mr. r;1,,'-' I ~
illiant role in that achievement led tc..: ':1 " :;c ic;nn, in lU~'!. 'l~
?sident of the Ba7C'lk ~- 8 p .... sition it", ,,-,'~
>(~ ~;c,.:"
j'ourteen ' J ' l l , .
It was quite apparent, iA7hell Eugene Rl..=lI"K- 8"'~Frnpr1 the precjd('rH~Y,
task of erecting a new Europe 1.;./)c n . the':-.:?- c of the 01 <]
lid require resources on a far granck·c sCElle than lhose avaUC1ble
the World Bank.
The Marshall Plan tuuk on that enormous bllrdF.'n
.le the World Bank began tu turn its ",:",28 ann its ,:-,[forts tt".)~
it the

- 2 -

lose lands and peoples just then struggling to enter the age of
1dustrial technology and achievement. As events have since proved,
le Bank could have made no more fortunate choice for all mankind
~r could its efforts have been guided more wisely or more
ffectively than by Eugene Black.
The Bank's two affiliates -- the International Finance
~rporation and the International Development Association -- are
articularly impressive testaments to his vision and persuasive
atelligence. For no one played a more decisive role in the
reation of those two institutions than did Eugene Black. He saw
nd he worked unceasingly to help others to see -- that the needs
f the less developed countries were much too large, and their
vailable resources far too small, to be served by international
oans on conventional terms. In speeches, in talks with leaders
ere and abroad, he argued eloquently and cogently for the creation
f a new mechanism designed to help meet the overwhelming needs of
hese countries. His efforts bore fruit in the IDA.
The great unfinished business that the Bank began under the
irection of Eugene Black continues under the able leadership of
eorge Woods -- and will continue in the same spirit of idealism
empered with practicablity that characterize Eugene Black as well as
he Bank he guided and nurtured in its most crucial years. In his
aledictory address to the Board of Governors of the World Bank, he
escribed that spirit in words that apply to himself as well as to
he Bank. He said -- and I quote:
"What the Bank has been able to do is by no
means inconsiderable; in fact, the volume of sheer
physical creation -- the scores of factories, the
millions of acres of land, the millions of kilowatts
of electric power capacity, the tends of thousands
of miles of railroads -- can only be called
impressive. But the Bank's work is not to be
assessed in terms of the building of cold monuments
of stone, and steel and concrete; it has a deeper
purpose -- to enlarge the riches of the earth, to
give men light and warmth, to lift them out of
drudgery and despair, to interest them in the stirring
of ideas and in the grasp of organization and
techniques, toward the realization of a day in which
plenty will be a real possibility and not a distant
dream."

- 3 -

That is the spirit which characterizes the work of the World
Bank -- the spirit we honor with the dedication of this auditorium
today -- the spirit which, today and tomorrow, the World Bank and
men throughout the world will remember and honor as exemplified in
Eugene Black.

000

TREASURY DEPARTMENT
WASHINGTON.

I-:ITLj,OWIl.-G OF APP!iAI;:3i;'EIlT ON
:SPAKE DnUI·;S

L!:C '::'reasury Dcpal~r.1ent is instruc:tine customs field officers

to 'dlth:nolu appr8.isl:ment of brake druJllS from Canada, sold by Aimco
ll.utOr:lotl 'n, Pill~S C;or~pan:y of' Untario) Cana cia , pencl1.nG a determination
;,4.0

to '\;hetilcr this

jJ\C:

les:; tt2.11 f'J.i c valc,e.

~',~lio.ndisE::

is beinG sold in the United States at

".oti<~e to th'::'s (:;fi'ec:t is being published in

f'iir vC),lue \'lol~ld .ceQui:ce reference of the case to

01' dG..;llpin:..,; tmdcl' tLe la,,!.

rIle2cnpl:~int in this

caSE ',1?cS

'.:ecci ved on October

16 J 1963)

and

jREASURY DEPARTMENT

FOR IMMEDIATE REIEASE
HITEliOLDIHG OF APPrlAISEMENT ON
BFAKE DRUMS

The Treasury Department is instructing customs field officers
to vithhold appraisement of brake drcuns from Canada, sold by Aimco
Automotive Parts Conpany of Ontario, Canada, pending a determination
as to whether this merchandise is belnG sold in the United States at
less than fair value.

l;otice to this effect is beinE; published in

the Federal ReGister.
Under the AntidumpinG Act, deter~nation of sales in the United
States at less than fair value "'ould require reference of the case to
the Tariff CorrL":ussion, 'which "Tould consider vrhether A;~lerican industry
vas beine; inj<J.Tcd.

~oth

dUIllpine; pr:;'cC:' and injury r.mst be sho'~rn to

jelstify a findinG of dtUllpinC under the lay!.
The conplaint in this .:ase vas ::.~eccivEd on October 16, 196.::;, and
'.las made by the L.rm of Certified Automotive Prod·elcts, 'rIexdale J Canada.
The clollar value of imports received durinG the period l·lE~y 1, 1963, to

TREASURY DEPARTMENT
WASHINGTON .

• _ _ d..1-!-_'-1._

.:I'-='Li~C'Ll)Il:J

: l.rLil:~D

1\PP",J\IS1J;,~I~T

..)~~J~.~

to
l;C;

Ll1

01':

81,(;":;:::;

~rht;thc:r

th1s merchandisc is

sclcJ.tn tLc Jni tea St'..:.tt.::3 :::.t h,;3~ them f:::.1r value.

lTotice to

.0oth dciI:lpinG price and injury must be

"11e ::0.::.plaint in this case \las l'cceiV8d on O'-.:tober 1)

1963)

1,lisconsi2, .:=-h.=: dollar value of i[(,ports l'ecei ved during the period

TREASURY DEPARTMENT

FOR Hll,IEDIATE :tlliIEASE

HITHHOLDING OF APPAAISEHENT ON
UNLINED BRAKE SHOES

The Treasury

Depal~ment

is instructing customs field officers

to withhold appraisement of unlined brake shoes from Canada, manufactured by Aimco Automotive Parts Company, Cooksville, Ontario,
Canada, pending a determination as to "'hether this merchandise .is
being sold in the United States at less than fair value.

Notice to

this effect is being published in the Federal Hecister.
Under the Antidumping Act, determination of sales in the United
States at less than fair value vrould require reference of the case
to the Tariff C;ornmission, uhich ,'ould consider whether American .indlistrJ

via;:;

shown to

beinG injured.

~ustify

Loth dumpinc; price and injury must be

a finding of dumpinG under the lal,l.

The complaint in this case

vlaS

received on October 1, 1963,

and vras y.'lB.de by the firm of Pick llanufacturinu; Company, viest Bend,
\iisconsin.

The dollar value of imports received during the period

January 1, 1963, to date, \las approximately qbC5,OOO.

- 3 -

rtnrt e:'ch:'.n~(! tenders will receive equ;:ll treatment.

Cash adjustments will be made

for dlfferences betw2cn the p~r VD_lue of ma.turing bills accepted in exchange and
the

is[~110

price of the new bills.

The income derived fro'll Trco.:mry bills, whether interest or gain from the B&1e
or other disposition of the bills, does not have any exemption, as such, and
from the Gole or
trcntlT:r:nt,

<1')

oth~r

1081

diGposition of Trcn:mry bills does not have any special

such, under the IntcTI1al Revenue Code of 1954.

The bills are subject

to c;:tr_t-.e, inheritance, gift or other excise taxcs, whether Federal or sta.te, but
n.re f")(f'yr,pt from all tOY:ation now or hercaf'ter imposed on the principal or interest
thcn,of by any State, or any of the possessions of the United states, or by any
loc3.1 toxinc; Dllthority.

For purposes of t8-l3tion the amount of discount a.t which

Trc~sury

bills are originally Gold by the United states is considered to be in-

terc0t.

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

consloo~

to accrue until such bills are Gold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other thon life insurance companies) issued hereunder need in·
clude 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 ~t~
received either upon sale or redemption at ma.turity during the taxable year for
which the return is made, as ordinary gain or 1055.
Treasury Department Circular No. 418 (current revision) and this notice, p~.
scribe the terms of the Treasury bills and govern the conditions of

their.iss~,

Copies of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 ..

!cimals, e. g., 99.925.

Fra.ctions Dl8\Y 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 Ba.nk.s or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
rovided the names of the customers are set forth in such tenders.

Others than

l.Dking institutions will not be permitted to .submit tenders except for their
account.

III

Tenders will be received without deposit from incorporated banks

Id trust companies and from responsible and recognized dealers in investment
~curities.

Tenders from others must be accompanied by payment of 2 percent of

le face amount of Treasury bills applied for, unless the tenders are accompanied
an express guaranty of payment by an incorporated bank or trust company.

Dmnediately a.:f'ter the closing hour, tenders will be opened at the Federal
!serve Banks and Branches, following which public a.nnouncement will be made by
Ie Treasury Department of the amount and price range of accepted bids.

Those

lbmitting tenders will be advised of the acceptance or rejection thereof.

The

tcretary of the Treasury expressly reserves the right to accept or reject any
~

all tenders, in Whole or in part, and his action 1n any such respect shall be

.nal.subJect to these reservations, noncompetitive tenders for $ 2~00 or
lSS

for the additional bills dated september 19) 1963

until maturity date on

March 19, 1964

)

, ( 91

days remain-

xmo
and noncompetitive tenders for

2(5m'}
H)O,OOO or less for the

182

.. day bills without stated price from any 'one

Mer will be accepted in full at the average price (in three dec1ma.ls) of acpted competitive bids tor the respective issues.

Settlement for accepted ten-

rs in accordance with the bids must be roMe or completed at the Federal
Dks on December 19, 1963

Reserv~

, in cash or other immediately available tunds or

a like face amount of Treasury bills maturing

December 19, 1963

•

Cash

TREASURY DEPARTMENT
Wa.shington

December il, 1963

FOR IHt,mDIATE RELEASEjc
"Y(;'{;;X'(XXXXXXX~XXXYXXXXXXXAXX'fXPc

TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by thi s public not ice , invites tenders for two series
of Treasury bills to the aggregate amount of $ 2 .100.000.000

(>aX

cash and in exchange for Trea.sury bills IDa.turing
of $ 2 ;101 ,497,000

, or thereabouts, for

December 19, 1963 , in the 8lDOUDt

(ci)t

, as follows:

ttY

91 -day bills (to maturity date) to be issued December

«$¥

in the amount of $1, 300~ ,000

tif.

1963

,or thereabouts, represent-

ing an additional amount of bills dated September 19, 1963 ,
and to mature

00:

00;'

March 19

amount of $ 800 'l&Jj000

1964
, originally issued in the
an addl tiona1 $100,092,000 was issued OctAl
,the additional and original bills 28,11

to be freely interchangeable.
182

-day bills, for $ 800, 0k&i 00
December 19. 1963

({iii

,or thereabouts, to be dated

, and to mature

June 18,t.m4

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 onl)',

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 ad
$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 Standard time, Monday, pece~J 6
Tenders will not be received at the Treasury Department, Washington.

J 963

....

Each tender

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

TREASURY DEPARTMENT

'OR IMMEDIATE RELEASE

December 11, 1963

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 December 19,1963, in the amount of
2,101,497,000, as follows:
91-day bills (to maturity date) to be issued December 19,1963, in
he amount of $1,300,000,000, or thereabouts, representing an
dditional amount of bills dated September 19, 1963, and to mature
~arch 19, 1964, originally issued in the amount of $800,730,000 (an
dditiona1 $100,092,000 was issued October 28, 1963), the additional
od original bills to be freely interchangeable.
182-day bills, for $800,000,000, or thereabouts, to be dated
2cember 19, 1963, and to mature June 18, 1964.
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. T,hey
ill 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
p to the closing hour, one-thirty p.m., Eastern Standard
ime, Monday, December 16,1963.
Tenders will not be
eceived 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 pric~ offered must be expressed on the baSis of 100,
lth 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
)rwarded in 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
lstomers provided the names of the customers are set forth in such
~nders.
Others than banking institutions will not be permitted to
)bmit tenders except for their own account. Tenders will be received
Lthout 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
lount of Treasury bills applied for, unless the tenders are
:companied by an express guaranty of payment by an incorporated bank
• trust company.
D-1066

- 2 -

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and Drice 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
l)(' p tember 19 1963 (91-days remaining until mat uri t¥ date on
;;;lrch 19
1964) 'and noncompetitive tenders for ~100,OOO
or lese 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 December 19, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 19,1963 9 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 lOBS 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 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 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 revisicn) 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 Pederal Reserve Bank or BranCh.
000

TREASURY DEPARTMENT

December 12, 1963

FOR IMMEDIATE RELEASE
TREASURY

~~T

TRANSACTIONS IN NOVEMBER

During November 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
$436,732,500.00.
000

D-1067

TREASURY DEPARTMENT

December 12, 1963

FOn. IMMEDIATE RELEASE
TREASURY

~qxET

TRANSACTIONS IN NOVEMBER

During November 1963, market transactions in
direct and guaranteed securities of t.he government

for Treasury investment and other accounts resulted
in net purchases by the Treasury Department of
l436,732,500. 00 •
cOo

STATUTORY DEBT UMlTAWN
As of

November 30, 1963_

-4-C

\i'ashington.

Dec.

-L]l61

SC,II"') ~l of S"cond LibeHY Bond ACI, as Amended, pro,·ides Ihal Ihe. face amount of obligations is~ued undtr IUlhot
that Act, an" the face amount of obligations guaranteed a\ to principal and In[erest by [hc United States (except such AU., 'it
ohl''''''''on, ,\'. may be held by the Secretary of [he Treasury), "Sholl not exceed in the ogpeg"te S2S~,OOO,OOO 000 ~"
Jun,. .lv, 1"~(1, U. S, c., [ide 31, sec. 757b), outstanding at any ooe time. For purposes of tb,s section the current"td nC
,·alu,. of "n)' ohllgA[lOn Issued on a discount basis which is redeemable prior to maturity at the option of the holder ~h.lI~'"
",krcJ ." 1[\ (,lce ,"dOUnl." The Act of August 27, 19(d (P !.. 88-106 881h Congress) provides that the .1bove limit.llon JhtJ~
temporarily Increased during the period beginning on September I, 1963. and ending on November 30, 1963 to $309,000,000,..
The lollowin/o: [able shows the face amount of obligations OUI'-landing and the face amouat which can Itill be 110-11
under Ihis limitation:
TotAl fnce ",mount tl.M may be outslanding at anyone time
,000,(0)
Outslnndin,: nbliv.Ations issued under Second Liberty Bond Act, all amended
Interest-bearing:
....
Treasur" billa
$50,521,102,000

$309,000

Cectd:,~les

10,939,435,000
58,666,289,000

of indebledness

Tr<'Asury oates

$120,126,826,000

[J"nJ9 -

Treasury - - - - - - - - - • Savings (Current redemption value)
United States Retirement Plan bonds
Depositary
R. F A seri"~
Inv('stment ,r,ir. - - - - - - - .cr« t, r .• Ies 01 Indebtedness -

86,423,941,350

, , ,

48 792 529 764
415,755
97 , 910/,7V
Cf"lO
25,043,000
3,703,719,000

139,043,568,369

469,000,000
30,120,482

ForeIgn series - - - - - - - - Foreign Currency secies______
Treasury nOles -

1 63,1l8,258

Foreign s e r i c s - - - - - - - - Treasury bonJ~-

Foreign Curren,..y series - - - - - 705,021,190
TreH·.ury certificates
---';:;2~5~0'""0~00~""'0
Special Funds -----'--

Certificates of indebtedness - - - Treasury notes _ _ _ _ _ _ _ __
Treasury bonds _ _ _ _ _ _ _ __

6,564,358,505

2,373,308,000
34,615,476,000

TOlal inlerest-bearing _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Matured, inlerest-ceased _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Bearing no interest:
United States Savings Stamps _ _ __
Excess profits tax refund bonds _ _ __
lnternat'l Monetary Fund notes _ _ __
Internat'l Develop. Ass'n. notes _ __
Inter-AmeriCAn Develop. Bank notes _ _
United Nalions Children's Fund bonds_
Uniled Natic-ns Special Fund bonds _ _

1,367,259,930
2,500,000

52,968,955
690,992
3,036,000,000
136,60.:3,800
125,000,000
1l,590,506
10 ,OO_~, aoC)

Total
':;uaranteed obligations (not held by Treasury):

43,5.53,142,505
304,093, 29"D,1f64
333,069,575

3,422,859,253
:307 , 849, 225,0J2

ioterest-bearing: .
Debentures: F. H. A, & DC Stad. Bds._
Matured, interest-ceased _ _ _ _ _ __

717,242,450
_150,675

Grand 10lal outstandiog
Balance face amount of obligations issuable under above authority
Reconcilement with Statement of the Public Debt

_.......;1:.:.Jo.::..:v~em=b::;.;e~r~...3:.::0::.;......
, 1....9-=6:.. . 3'.{Dete)

(Daily Sta teme n t of the Un i ted Sta te s Tre as ury, _ _-=.:lT~o~v;.:e:;.;m...;;.b=,e=r-,2",,9~,-=1",9~6o.3,- )
Qutstand;ng _
(Dete)
Total gross public debt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Guaranteed obligatioos not owned by the Treasury _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Total grou public debt and guaranteed obligations _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Deduct - otber outstanding public debt obligations Dot .ubject to debt limitatioD _ _ _ __

n-10AR

STATUTORY DEBT LIMITATION
November 30, 1963.
A:'i of

'4'ashinA[on, Dec. 12 , ~6l.
Section
0'
Second
LiberlY
Rond
ACI,
as
..
d,
that
Ihl'
lacl'
amOUnl
of
aurhorlty of
CI
, nnd the
of obliP;Rlions
as to r-incipal and intl'lest by Ihe UnitedS[a[es
such
0 ' m.ly '"
held by Ihe Secretary of rhe TreBsuI)'), "Sholl not
in
(Aclof
30, 1()~(1, U, S. C .• tltie 31, sec. 757b), OU[ .. [anding dt nny onc time.
For purposes of tbl9 Sl'(tlon th~ current , .. dcmptlon
of ~"Y o}'I'I'"tl"" ,",ued on a discount ba.is which 1< r .. d"l'mRble prior to marurity at the option of the holder "h .. 11 be caneJ os (t, t,1(e .,nH'unt." The Act of AUl'ust 27, 191>' (P.I._ 88-106 SHth Congrl'ss) provides that the i1bov.- Ilmlt .. tlnn <h,1I1 he
,r"rily Increos .. d durin,; the reriod beginning on Sept.-mhl'r I, 1963, and ending on NO"l'mb .. r 30, 1963 to S309,OOO,000,OOO.
The followin,;: (f.ble ,hows [hI' fael' AmOUn[ of obli,ltations
cr this limitation:
out"tanding and the face amount -hich can still bl' 'B~ued
Al face amount th .. t mny hI' ollt.tandin,; at any anI' tim ..
~ut"ndin~ ohli8111ions iuued under Second Llberty..!'ond Act,
Int .. ,,,"t-bearlnl' :

ntio"~

Rm~nd
p;uRrnn(,,~d

f~c~ ~mounl

rrovid~5

cxcc~d

obligation~ i5'U~d und~r
(~xcept
~uM~nteed
th~ Qflp~gRte. S28~,OOO,OOO,000

$309,000,000,000

Tre3sun bills - - - - - - -_ _ _
Certd""tes of ind~btedne8.s
Treasury notes _ _ _ _ _ _ _ _ _ __
DDnJ~

$50,,S21,102,OOO
lD,939,435,ooo
58,666,239,,000

$120,126,826,000

86,423,94.1,350
48,792,529,764415,755
97,919,500
25,043,000
3,703,719,000

139,043,568,369

•

Tren sury _ _ _ _ _ _ _ _ _ _ _ __
Sllvin~s

(Curel'n[ redemption vatu .. )

Uoit .. d Stllles Retirl'm~Dt Plan bonds
Dcpo sitary _ _ _ _ _ _ _ _ _ _ __
R. E. A.

~eri~~

In'\'~5tm,,"nt

~rr1"C;

_ _ _ _ _ _ _ __

cnlf1i."ltes (\1 lodehtedn~88 ..

Fore'gn set; e'" _ _ _ _ _ _ _ _ _ __

469,000,000
30,120,482

foreign Curre'1cy aeril's _ _ _ _ __
Treasury notes Foreign serie< _ _ _ _ _ _ _ _ _ __

163,11£,258

Treasury bond,·

705 ,021,190
2,500,00"0

Forc'~n Currcnry seri .. s - - - - - Tren',ur,,' certif,cat ... - - - - - - - - Spec,,1 Fund. -

-----"-

6,564,358,505
2,373,308,000
- - - - - - - - 34,615,47(')1°0'.)
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

1,367,259,930
2,500,000

Certif,cates t>f indeb!edn .. g~
Treasury notes

Treasur)' boo d.
Total intercst·r e "in~

Matured, In·ere't ceased _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Bearin,-; fin

in~r"e

United ::!ate s SC'''lngs Stamps _ _ _ __
Excess ;--rofats :ax refund bonds _ _ __
[ntcrnat'! \~"nctr""Y Fund

n0t("Q

_ _ __

InternAt'] De . . . el(~:-' .. A ~o;;'n. nnteq _ _ __
Inter-Am("O(",>ln [l,:"vcio~. Rank nOtes _ _

Cni,,,rl :\"tians (:nild,en's Fund honds_
Cnlled SRtions S;oeci"l Fund bonds _ _
Total
uaranteeci

ohli~Bti"n<

lntere't·b~arinp:

52,900,955
690,992
3,036,GOO,ClOO
136, 60:3, eOO
125,000,000
1l,590,S06
10 z OOq" oeY)

(not hdd by Tr .. asuty):

Debentures: F. fl, A. & DC Scad. Bds._
M.tured, Intercst-cr-ascd _ _ _ _ _ _ __
(",nd trr.d (>ut<tancj,nl(
iance race

43,553,142,505
304,093,296,804
333,069,575

717 J 242,)-4.50

_250 ,675
.

RmOUnt (If nbl'l(Ati()ns issuable under Rbo\'e authOrity

· De bt _ _I~1o~v.::..:em=b?e~r-:-""3,,,,0~,_1_q
.....
, 6-.3....
Recoocilement with Stateml'nt of the Pub IIC
{Date)
(Daily StACeml'nt of the Uoited Stlltes Tr~R8ury,

I1ove:nber
(Data)

29. 1963 )

tand,n~ ot81 gro8s pubiic dl'bt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

u8raoteed obligation5 not owoed by thl' Trl'Rsury - - - -_ _ _ _ _ _ _ _ _ _ _ __
' d·bt
and guarllotel'd obligations - - - - - - -I"- - -. - - - - -_ _
ota I gro •• pU bl Ie
.
'Jct· other outstand,ng
pu blic debt obligation. not .ubjl'et to dl'bt Imltauon _ _ _ __

1068

308,2l!~, 711,868

717,793,125

-2-

Commodity

Period and Quantity

Unit
Import7""
:
of
:
as of
: Quanti ty : Nov. 30, ~

Absolute Quotas:
Butter substitutes, including
butter oil, containing 45%
Calemar
or more butterfat ••••••••••••••• Year 1963

1,200,000 Pound

Fibers of cotton processed
12 mos. from
but not spun •••••••••••••••••••• Sept. il, 1963

1,000 Pound

Peanuts, shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
12 mos. from
butter) ••••••••••••••••••••••••• August 1, 1963

1,709,000 Pound

Imports through December 6, 1963.

QuotaFillI

1,107,1)4

TREASURY DEPARTHENT
\'l ashington
I11H~InATE R.~r:

D-1069

FRIDAY, DECEMBER 13,1963

The Bureau of Customs announced today preliminary figures on imports for co~
tion of the following commodities from the beginning of the respective quota perioda
through November 30, 1963:

Connnodity

·
·•

Period and Quantity

: Unit
: Imporii
:
of
:
as or
:Quantity : Nov. ~

Tariff-Rate Quotas:
Cream, fresh or sour ••••••••••••

Calendar Year

1,500,000 Gallon

Whole Hilk, fresh or sour.......

Calendar Year

3,000,000 Gallon

Cattle, 700 Ibs. or more each
(other than dairy cows) •••••••

Oct. 1, 1963Dec. 31, 1963

120,000 Head

Cattle less than 200 Ibs. 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 Fillai

Tuna Fish.......................

Calendar Year

63,130,642 Pound

48,238,)42

114,000,000 Pound
45,000,000 Pound

12, 337,OCO
1, 937,J~

Hhi te or Irish potatoes:
Certified seed ••••••••••••••••
Other •••••••••••••••••••••••••

Knives, forks, and spoons
with stainless steel handles ••

12 mos. from
Sept. 15, 1963
Nov. 1, 1963Oct. 31, 1964

69,000,000 Pieces

710,786

23,512,672

Imports through December 6, 1963.

TREASURY DEl' AR'lMENT

Washington
nATE RELEASE

DAY, DECEMBER 13)963

D-1069

The Bureau of Customs announced today preliminary figures on imports for consumpof the following commodities trom the beginning of the respective quota periods
ugh November 30, 1963:

Cormnodity

·
·••

Period and Quantity

Imports
·•• Unit
•
of
.
·iQuaptitx ; Nov.as 30.of 1963

rf-Rate Quotas:

n, fresh or sour •••••••••••• CaleMar Year

1,500,000 Gallon

710,786

e 1-1ilk, fresh or sour •••••••

3,000,000 Gallon

Calendar Year

le, 700 1bs. or more each
Oct. 1, 1963ther than dairy cows) ••••••• Dec. 31, 1963

120,000 Head

9,953

Le less than 200 1bs. each ••

12 mos. from
April 1, 1963

200,000 Head

47,753

, fresh or frozen, filleted,
~.,
cod, haddock, hake, po1~k, cusk, and rosefish ••••••

Calendar Year

24,874,871 Pound

Quota Filled

Fish •••••••••••••••••••••••

Calendar Year

63,130 ,642 Pound

48,238,342

114,000,000 Pound
45,000,000 Pouni

12,337,000
1,937,350

or Irish potatoes:
-tified seed •••••••••••••••• 12 mos. from
~r •••••••••••••••••••••••••
Sept. 15, 1963

!S,

forks, and spoons

,h stainless steel handles ••

Nov. 1, 1963Oct. 31, 1964

mports through December 6, 1963.

69,000,000 Pieces

23,512,672

-2-

Conm:xiity

Period and Quantity

Unit

lmporteas of

:Quantity : Nov. 30.
Ab~olute

Quotas:

Butter substitutes, including
butter oil, containing 45%
Cslemar
or more butterfat··.·.·· ••••••• • Year 1963

1,200,000 Pound

Fibers of cotton processed

12 !IX) s • from
but not spun •••••••••••••••••••• Sept. ll, 1963

1,000 Pound

Pe&nuts, shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
12 mos. from
but ter) ......•....••.....•...... August 1, 1963

1,709,000 Pound

Imports through December 6, 1963.

Quota Fillsl

- 2-

COTrON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: Provided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3116 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Established
TOTAL QOOTA

Country of Origin
United Kingdom ••••••••••••
Canada .................... .

France ••..•..••.......•...

India and Pakistan ••••••••
Netherlands ••••••.•.••••••

Switzerland •••••••••••••••
Belgium.......
. •.•.•
Japan.........
• •••••
Ch ina. . . . . . . . . . . . . . .•.•.
Egyp t. . . . .

. ..•........••

Cuba. • . . • .

. ...•...•.•..•

Germany •••••••••••••••••••
Italy .........•...••.•.•••

Total Imports
Sept. 20, 1963, to
December 10, 1963

Established
33-1/3% of
Total Quota

Imports
11
Sept. 20, 1963,
tODecember 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

450,753
239,690
137,166

1,441,152

23,538

75,807

22,445

11,249

22,747
14,796
12,853

5,482,509

906,027

34,147
33,022

25,443
7,088

Other, including the U. S.

~nc~uded

. . ---_..--s. . . . .

tota1

1;:.\',,_

n .....

~mports.

11:'_ .... _

e»£

co1urnn

C'LII..tc:.", _ _

2 •

1,599,886

45,983

TREASURY DEPARTMENT
Washington, D. C.
IMMEDIATE RELEASE

FRIDAY, DECEMBER 13,1963

0-1070

oo • • • • • • • • • • • • • •

India and Pakistan ••••••••••
China •••••••••••••••••••••••
Mexico ••••••••••••••••••••••

Brazil ••••••••••••••••••••••
Union of Soviet
Socialist Republics •••••••
Argentina •••••••••••••••••••
'ijaiti •••••.•.•.••••.••••••••

icuador •••••••••••••••••••••

Established Quota

Imports

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

628,215

Honduras •••••••••••.•.••••••

40,000

Paraguay •••.•••..••.••••••••
Colombia •••••••••••••••.•••.
Iraq .•...••.••.•...•.••••...

8,883,259
600,000

475,124
5,203
237
9,333

Established Quota

Country of Origin

British East Africa •••••••••
Indonesia and Netherlands
New Guinea •••••.••••••••••
!JBritish W. Indies •••••••••••
Nigeria •••••••••••••••••••••
~/British W. Africa •••••••••.•
Other, including the U.S ••••

Except Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Except Nigeria and Ghana.
Cotton 1-1/8 11 or more
Established Yearly Quota - 45,656,420 lbs.
Imports August 1, 19·6:3, to December 10, 19 63
Allocation

Staple Length
1-3/S" or more
1-5'32" or more and under
1..-3'8" (Ta.:ngu.1._>
L-1.,s·· ~'IC" ~r. ~

.......c:I ... -r

39.590,778
1.500.000

Imports
39.590.778
81,759

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

Imports I

TREASURY DEPARTMENT

Washington, D. C.
IMMEDIATE RELEASE

FRIDAY, DECEMBER 13,1963

D-1070

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, as modified by
the Tariff Schedules of the United States which became effective August 31, 1963.
COTTON <other than linters) (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September ~0--,-19 63 - December~O.1 196J
Country of Origin
Egypt and Sudan •••••••••••••
Peru •••.••.•
India and Pakistan ••••••••••
China. .. • • . . • . • • . • . • . . • • .•.
Mexico •••••.•.••••••••
Brazil ••••••••••••••••••
Union of Soviet
Socialist Republics •••••••
Argentina •••••.•••••••••••••
Haiti •••••••••••••••••••••••
Ecuador •••••••••.••••.••.•••
0

•••••••••••••••

Established Quota

Imports

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

628,215
40,000

8,B8J,259
tIJO,00O

475,124
5,203
237
9,333

Country of Origin

Established Quota

Honduras ••••••••••••••••••••

752

Paraguay •••••••.•••.••••••••
Colombia •••••••••••••••••••.
Iraq ••...•.•.•........•....•
British East Africa •••••••••
Indonesia and Netherlands

871

124
195
2,240

New Guinea ................ .

71,388

1/British W. Indies •••••••••••
Nigeria •••••••••••••••••••••
2/British W. Africa •••••••.•.•
- Other, including the U.S ••••

21,321
5,377
16,004

11 Except Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
11 Except Nigeria and Ghana.
Cotton 1-1/8" or more
Established Yearly Quota - 45,656,420 Ibs.
Imports August 1. 196)) to December lD) 196J
Staple Length
1-3/8" or more
1-5/32" or more and under
__ ., leU

(T,.. __ •• ..: ..... ,

Allocation
39,590,778
<;nn

nnn

Imports

39,590,778

Imports

- 2-

COTTON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: ProVided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3116 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Established
TOTAL QOOTA

Country of Origin
United Kingdom ••••••••••••
Canada ••••••••••••••••••••
France ..••....•.......••..

India and Pakistan ••••••••
Netherlands ••••••••••.••••
Switzerland •••••••••••••••
Belgium •.•.....•.....•.•..
Japan •••• ~ ••••••••••••••••
China •••••••••••....•.•••.
Egyp t ••....•..••••.••..•••

Cuba •••.••.••..•.••.••.•••
Ge rrnany •••••••••••••••••••

Italy_ •.••••.••.•••.....••

Total Imports
Sept. 20, 1963, to
December 10. 1963

Established
33-1/3% of
Total Quota

Imports
11
Sept. 20, 1963,
toDecftIDher 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

450,753
239,690
137,166

1,441,152

23,538

75,807

22,445

11,249
34,147
33,022

22,747
14,796
12,853

5,482,509

906,071

25,443
7,088

Other, including the U. S.

Inc~uded

,., . .... --..-~-,

•• ,.

~n
, t .. _

total

~mports.

1."'-...... ..;_ ..,-......

~£

c ......

column 2.
t::.c>~_

1,599,886

45,983

TREASlrKY DEPARTMENT
Washington
IM''EDIAT~

RELEA.SE

FRIDAY, DECEMBER 13,1963

D-1071

The Bureau of Customs has announced the following preliminary figures
showing the imports for consumption from January 1, 1963, to November 30, 1963,
inclusive, of commodities under quotas established pursuant to the Phi1ipp~e
Trade Agreement Revision Act of 1955:

Co mm::> di ty

Established Annual
Quota Quantity

·
··

Unit
of
Quantity

···

Imports
as of
November 30, 1963

Buttons •••••••••••

680,000

Ci~ars •••.••••••••

160,000,000

Number

12,201,037

Co conut oil •••••••

358,400,000

Pound

355,785,325

Cordage •••••••••••

6,000,000

Pound

5,108,340

To bacco •••.•••••••

5,200,000

Pound

5,124,773

Gross

257,550

TREASURY DEPARTMENT
Wa.shin~ton

~DIATE

RELEA.SE

~IDAY,

DECEMBER 13,1 Of.' 1

D-1071

The Pureau of Customs has anno'..l11ced the followi':1g preliminary figures
owing the inlports for ccnsU!lIDtion frc"lt January 1, 1963, to November 30, 1963,
(elusive, C'f oolTll"'lOdi ties under quotas established :::lursiJant to the Philip\Jine
'ade Agreement Revision Act of 1955:

Comoodity

Established Annual
quota quantity

Unit
of
quantity

I!llports
as of
November 30,

ttons •........•.

690,000

gars •••••.••••••

160,000,000

Number

12,201,037

oonut oil •••••••

358,400,000

Pound

355,785,325

rdage •••••••••••

6,000,000

Pound

5,108,3uO

bacco •....•..•.•

5,200,000

Pound

S, 12)~, 773

Gross

257,'3:0

1963

~LASURY

D1:P.A..'q~; l'

Washington, D. C.

ThWEDIA TE RELEASE

D-1072

FRIDAY, DECEMBER 13,1963

PR.?t,IMINARY DATA ON IMPORTS FOR CONSUMPTION CF UNMANtJFAC'lURED LEAl) AND ZllIC CHARGEABLE TO THE QUOTAS ES'IABLISHSJ
ITI PRESIDENTIAL PROCLAMA.TICN NO. 3257 OF SEPTEMBER 221. 19581. AS MODIFED BY THE '!ARIIT SCHEDULES OF .~

UNITED STAnS, WHICH

QUARTERLY QUOTA PERIOD -

October 1

B~CAME

l!.FFECTIVE AUGUST 31, 1963.

December 31, 1963

IMPORTS _ October 1 - December 6, 1963 (or as noted)
I~

Produotion
...

QUO

11,220,000

Australia

ITEM 925.02-

ITEM 925.03-

Lead-bearing ores
and rna. terials

Country
of

------.~

925.01-

. : o:u&rteriy Gob
orta : Dutiable lead
11,220,000

22,540,000

Zino-bearing ores and
materials

Unwrouiht lead and
lead wa te and scrap

t6;

: QUirter
thioh.
Im1)orts: Zinc
ntent

Imports

ITEM 925.04-

;Uuwrought zino (except alloys
: of zino and zinc dust) and
zino waste and scrap
;\,Uarterlv QUota
By Weight
oUIrdII )

Imports

7,520,000

37,840,000

27,449,413

21,681,313··

Belgium and
Luxemburg (total)

Bolivia

5,040,000

Canada

13,440,000

5,040,000
2,413,846"

15,920,000

14,931,450"

66,480,000

3,600,000

Italy
Mexico
Peru

16,160.000

l6,lW,OOO

36,880,000

27,241,298

70,480,000

46,206,523

6,320,000

6,319,014**

12.880,000

8,347,922

35.120,000

22,954,240

3,760,000

3,7SfJ,879"

5.440,000

5,438,847"

6,080,000

Republic of the Congo
(fonnerly Belgian Congo)
un. So. Afriea

14.800,000

14,880,000
15,760,000

Y'ugoslaTia

Al1 other foreign
countries (tota1)

6,560.000

3,864,415··

-See Part 2. .&.ppen.db to Tarlf'f' Sohed,u.•••
• -"h-tport.

..a

Deo.....rnl:'er

9..

1963

6,080,000

12,7flO,91S"
6,000,000

17,840,000

TREASURY m:I'AR'!~A!::'l"r

Washington, D. C.

IMMEDIA n: RELEASE

D-1072

FRIDAY, DECEMBER 13,1963

P"'C:::LThITNARY DATA ON IMPORTS FOR CONSUMPTION IJ!o' UNMANtJFACTURED LEAD AND ZINC CHARGEABLE TO mJ: QlJOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAJdATION NO. 3257 OF SEPTEMBER 22.t 1958.t AS MODIFIED BY THE 'l'ARIfl' SCliEOOLES OT TEE
UNITI.:D STATI:S, WHICH B]!;CAME t;ITECTIVE AUGUST 31. 1963.

QUARTERLY QUOTA. PERIOD -

October 1 - December 31, 1963

IMPORTS _ October 1 - December 6, 1963 (or as noted)
I~

Co 'Xl try

925.01-

Lea.d-bearing cree
and materials

ITEM 925.03Unwrcu~ht

lead and
lead waste and scrap

Production

1l,220,OOO

Australia

11,220,000

22,540,000

ITEM 925.02-

Zioo-bearing ores and
materials

5,040,000
13,440,000

Canada

2,41"3,846·'

7,520,000

15,9"',000

14,931,450 u

66,480,000

37,8«),000

27,449,413

3,600,000

11exico
16,ltlO,OOO

Peru

16,160,000

Republio of the Congo
(formerly Belgian Congo)
;:-n. So. Africa

lA,800,OOO

14,880.000

Y'.lgoslaTia
o~her

7,520,000
5,040,000

Italy

All

;umvrought zino (except alloys

: of ziDo and zinc dust) and
z1Dc waa te and. a crap

21,681,313--

Belgian and
Lwcemburg (total)
Bo1iTi&

:rn;y 925.04'

foreign

co~trie8 (total)

6,560,000

3,864,415-·

-See Part 2, Appendix to Tariff Sohedule ••
•• Imports as of Decernter 9, 1963

36,880,000

27,241,298

7O,~,OOO

46,206,523

6,320,000

6,319,014"

12,800,000

8,347,922

35,120,000

22,954,240

3,760.000

3,758,879"

5.440,000

5,438,847"

6,OOO,QCO

6,000,000

15,760,000

12,7110,915 ••

6,080,000

17 ,840,000

17,840,000

The Treasury announced today that at the request
of Hr. Arthur Levitt, Comptroller of the State of
l'Jew York, the Committee of Chief State Fiscal Officers
t

I.'

has been 6ranted the use of the Department's facilities
for a meeting in Hashington on December 16th.

The

Committee is under the Chairmanship of Mr. Levitt, and is
composed of the chief fiscal officers of about half of
the 50 stateso

It is concerned with problems involved

in public industrial bond financing.
Although the Treasury De,~artment ,.,ill not l~r~~~~
in any policy discussions or statements,

Und~i' Secretary'

Fmvler will welcome the group and Treasury experts will
be made available for technical information.

TREASURY DEPARTMENT

December

13, 1963

MEMORANDUM TO THE PRESS:

At the request of Mr. Arthur Levitt, Comptroller of
the State of New York, the Committee of Chief State Fiscal
Officers has been granted the use of the Treasury
Department's facilities for a meeting in Washington on
December 16th.

The Committee is under the Chairmanship of

Mr. Levitt, and is composed of the chief fiscal officers
of about half of the 50 states.

It is concerned with

problems involved in public industrial bond financing.

Although the Treasury Department will not participate
in any policy discussions or deliberations of the Committee,
Under Secretary Fowler will welcome the group and Treasury
experts will be made available for technical information.

000

roa

l.".:Llt1..}E'. it. NI<I5SI'~'~.l,'.

fwdy. Jeo.ber 17.

De ••Der 16, 196)

l~J •

')1< ~(,'-UlfJ

.aUL!S 0' TU4.3t1df·S WIKLI BILL

lan ....... 'a'

!be Tn.HtUJ7 DepariMDt .........
t tie teDde ... tel' ....._.,
Tn •• ury blUe, one ..rie. to be aD add1\1OMl 1. . . • 1 the bU1s dated .:iept.btr 11,
1163, aDd toba otJler Nri•• t.o be detect .Deeember 19. 196), lMi.ch ".,. ott.... OIl - .
.... opeaed at tbe 1'.cJenl :te....... BuU OD 14_.HI' 16. 1ender. wn lIrr1•• fir
P.,lOO,OOO,OOO, or the ....
of 91"'1 blll. aDd t . ii.bOO,OOO,OOO, .,. ' ..........
• 1 182-4&, bill.. The 4.taila of t.be two ..rie. are a. follow"

bOll'.,

9l-da.f t .....U17 bUa

&Aall OP: ACOI."l:.j)

COKfK!ItIVE BIDS,

"'!I1.M KArOh
12. ll!s;
Ippl'OX. q Y.

Prloe

".llS
".1<»1.
99.106

torAL

'.SOl,
l.SbS-

•

).5)3. 11

t...

bld
at t ne 11')v pri.. • . . . ." "
percent of the aaouat ot 182-d&y bUla b1d. f ... • t th4; low pri_ . . acoepW

T~W

APPWD FOll AJID AOCRPftD ax PIllBillL USMV;' )tSTlUCfS.

f!!tH1."
....
.... foI'lI

Applied

For

)9,220,000

l,l&16,9S),ooo

'!!!JiM

~,H8,ooo
88),'-1.),000

At.l.aattl

17,S77,OOO
)),6.Ia1,OOO

lk,681,OOO
n,lt.7,000
11,5'11,000
27,6of,ooo

Cbi..,o

221.,260,.000

l)6,SQO,OOO

Ph:Uadelph1a

ClaelaDd
it..,.,
S\.

AOAual ftat.e

4/ boeptlng one teJader et $100,000
'ft percellt or the IM\Ul\ of 91-dal bUll
SO

und..

Mla,..tJOl,i.

18. . . C1\7
Dallaa
SU 'rue1a.

forALS

30,061,000
31,~7,000

39,9143,000

• !.eel1 •• For
t
t
1

1,li(~,(iJ,ociO
,~o

lU, 1)8 ,000
13,1.306,000

128,251.-

)0,724,000

to,72k,OOO.

*2,010,0)2,000

tl,)Ol,Ja2,OOO

$48,S'l"
J,lSO,.
2~,)16"

)),67',000

J&~.l}'.OOO

I ,,~,06j"

)),)16,000

18,11&2,000

86,(2),000

a,1 ,000

' ...

I
I

as,S62,OOO
3), 91S,OOO

t6,19S,ooo

30,063,~)O

LI.t~,ooo
j ,2U~,~OO

(),261 ,000
t

-.I .

13,22),000
ll, 7.,6 ,000
6'1.210 ,000
~ ,j7{; ,29?,\XJO

4,8111.7,691"

11,506.),161~
9,01);tI

7,2S6/f1
<26,210a!

f 100,0)8'-

or""

I~luJN 1276,417,000 1lODOOapetitl•• l.4tDdwa acoepi,ed at t{ie ..wrap pri..
jf ~DCI.l1ldu :;70,161,000 DO'**P8tlt1.... t.eAden aOOll"" at the a",• ....,. prS.el of ,...

On • OOupoD 1••••f tba .... leD&th &Ad for t,be _ _ a..,,;nt iDY•• te4, , .......
thNe. bUb would prorlde y1elda of 3.6)(, fof' to_ ~l-day bUla, u4 3.!8U, '"
tba 162-da~ bW.. lD~.rut rete. 011 Dill. aN quot.ed in tel"U 01 . . aaurl
tilth "be ret\1l'D related to the fa . . MOUIl't, 01 tJJeOUls payable .t. _art'1 . tban tile uoUDt 1Dv..1.ed an:.i their l~ 1a . ..:1 nlaJer of cia,.
)6.)..da year. tn eOlltl'Ut, y1..1cl8 on _nU't...w., notea, &lid bOIld8 ... f!IIIIIIlI!A
in teru ot 1Dtereet on the -.ollDt 1D"veated, . . . Jfelat.e t.ne a_tier .t ..,. itIIM
in liD 1nte:,••t pa~YMIl't. period to t.he actual Dd.' ... of daTa 1.& ,til ~, Ii\l
...unn~ COIlpoUDdiot, i f !IOn tnan ......... ,...nod 1a 1JnrolYlCl.

re1AI"''''

TREASURY DEPARTMENT
REI&SE A. M. NEWSPIPERS,
Jay, Dec_ber 17, 1563.
RESULTS OF TREASURY'S WEEKLY BILL OFFERING

The Treasury Departlllent announced last evening that the tenders for two series of
sury bills, one series to be an additional issue of the bills dated September 19,
and the other series to be dated December 19, 1963, which were offered on December 11,
opened at the Federal Reserve Banks on December 16. Tenders were invited for
)0,000,000, or thereabouts, of 9l-day bills and for $800,000,000, or thereabouts,
32-day bUls. The details of the two series are as follows:
~

OF ACCEPTED

'~TITlVE BIDS:

High

lDw
Average

9l-day Treasury bills
maturing March 19, 1964
Approx. Equiv.
Price
Annual Rate
3.501%
99.115
3.545%
99.104
99.106
3.538% !I

182-day Treasury bills
maturing June 18, 1964
Approx. Equiv.
Price
Annual Rate
98.149 a/
3.661%
98.136 3.687%
98.140
3.679% 11

:
:
:
:

a/ Excepting one tender of $100,000

percent of the amount of 91-day bills bid for at the low price was accepted
50 percent of the amount of 182-day bills bid for at the low price was accepted
TENDERS APPLIED FOR AND ACCEPl'ED BY FEIERAL RESERVE DISTRICTS:

trict
ton
York
.ladelphia
ve1and
:hmond
.anta
cago
IDuis
neapolis
saa City
las
Francisco
TOTAlS

AEElied For
39,220,000
$
1,h1.6,953,OOO
30,067,000
31,347,000
17,577,000
33,6h1.,ooo
224,260,000
39,943,000
25,562,000
33,915,000
30,124,000
86,823,1000
$2,010,032,000

Acce~ed

39,220,000
883,913,000
14,681,000
31,347,000
11,577,000
27,609,000
136,500,000
33,679,000
18,842,000
28,195,000
20,724,000
49.z135,tOOO
$1,301,422,000
$

AEElied For
30,06],000
1,192 ,693 ,000
8,150,000
33,316,000
4,848,000
3,209,000
191,758,000
13,806,000
6,267,000
13,223,000
11,756,000
62,t210 z000
~/ ;JPl,576,299,00O

AcceE:ed
$ 2~063,000
548,593,000
),150,000
23,316,']00
4,848,000
7,698,000
128,258,000
11,806,000
),767,000
9,073,000
7,2,56,000
28 z210,t00O
~ 800,038,000

£i

eludes $276,4.17,000 noncompetitive tenders accepted at the average price of 99.106
eludes $70,181,000 noncompetitive tenders accepted at the average price of 98.140
a coupon issue of the same length and for the same amount invested, the return on
~hese bills would provide yields of 3.63%, for the 91-day bills, and 3.81%, for
~he 182-day bills.
Interest rates on bills are quoted in tems of bank discount
dth the return related to the face amount of the bills payable at maturity rather
ihan the amount invested and their length in actual number of days related to a
~O-day year.
In contrast, yields on certificates, notes, and bonds are computed
.n terms of interest on the amount invested, and relate the number of days remaining
.n an interest payment period to the actual number of days in the period, with
'emiannual compounding i f more than one coupon period is involved.
073

TREASURY DEPARTMENT

December 16, 1963

FOR IMMEDIATE RELEASE

~2GULAR

TREASURY ANNOUNCES SCHEDULE FOR
\,TE£KLY BILL AUCTIONS DURING HOLIDAY SEASON

The Treasury announced that its next regular weekly
bill auction will be held on Friday, December 20, instead
of Honday, December 23. The holiday on Christmas Day
requires the shift in order to maintain the normal number
of business days between the auction and the payment date,
which remains Thursday, December 26.
The same pattern will apply the next week, because
New Year's Day occurs between the auction and payment
date. Tenders will be invited on Honday, December 23,
instead of Ilednesday, December 25, and the auction will be
on Friday, December 27, instead of Monday, December 30.
The payment date will remain Thursday, January 2.
For the following weekly bill auction, the New Year's
Day holiday \vill require a change in the announcement
date from \<lednesday, January l, to 1\Jes day, December 31.
The auction date will remain Monday, January 6, and the
payment date will remain Thursday, January 9.
000

D-I074

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

December 16, 1963

TREASURY ANNOUNCES SCHEDULE FOR
REGULAR WEEKLY BILL AUCTIONS DURING HOLIDAY SEASON
The Treasury announced that its next regular weekly
bill auction will be held on Friday, December 20, instead
of Monday, December 23. The holiday on Christmas Day
requires the shift in order to maintain the normal number
of business days between the auction and the payment date,
which remains Thursday, December 26.
The same pattern will apply the next week, because
New Year's Day occurs between the auction and payment
date. Tenders will be invited on Monday, December 23,
instead of Wednesday, December 25, and the auction will be
on Friday, December 27, instead of Honday, December 30.
The payment date will remain Thursday, January 2.
For the following weekly bill auction, the New Year's
Day holiday will require a change in the announcement
date from ~vednesday, January 1, to 1\Jes day, December 3l.
The auction date will remain Monday, January 6, and the
payment date will remain Thursday, January 9.
000

D-I074

- 3 mDJOO( ,,'luUI(

and exchange tenders viII receive equal treatment.

Cash adjustments will be made

for differences between the par value of maturing bills accepted 1n exchange ~d
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

lOBI

from the sale or other disposition of Treasury bills does not have any spec1&l.
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, bm
a.re 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 states, or by any
local taxing authority.

For purposes of taxation the amount of discount at which

Treasury bills a.re originally sold by the United states is considered to be interest.

Under Sections 454 (b) and 1221 (5) of the InternaJ. Revenue Code of 1954

the amount of discount at which bills issued hereunder a.re sold is not considered
to accrue until such bills are sold, redeemed or otherwise disposed of, and such
bills a.re excluded from consideration as capital assets.

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need

w·

clude in his income tax return only the difference between the price paid for sucb
bills, whether on original issue or on subsequent purchase, and the amount actuali1
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 Circula.r No. 418 (current revision) and this notice,

p~.

scribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circula.r may be obtained from any Federal Reserve Bank or Branch •.

- 2 -

, ., ..

,.~. ~,

.... ..• ,.,,'.
,

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will

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 FedenU
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
final.

Subject to these reservations, noncompetitive tenders for

less for the additional bills dated se:pte1llber . . 19Q3
ing until maturity date on

March 26, 1964

$200~O

91 days remain-

Odin

) and noncompetitive tenders for

000Ck

$ 100,000 or less for the 182 -day bills without stated price from anyone
QOO!)C
~
bidder will be accepted in full at the average price (in three decimals) of
cepted competitive bids for the respective issues.

&C-

Settlement for accepted ten-

ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on __De_C_emb_e..,r,,:::,:::2"'l"6..:,,_1_9_6_3_, in cash or other immediately available funds or

600Ck

in a like face amount of Treasury bills maturing

December 26, 1963

----rkm~-=----

• Cash

TREASURY DEPARTMENT
Washington

December 16, 1963

FOR IMMEDIATE 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,lOO®OOO,ooo, or thereabouts, tor
cash and in exchange for Treasury bills maturing

December 26, 1963 , in the _UBI

xtak

of $ 2.09~9,000 , as follows:
91 -day bills (to maturity date) to be issued

)(6j{
in the amount of $

1,30~0,000,

March

&ii

or thereabouts, represent-

ing an additional amount of bills dated
and to mature

December 26, 1963

i%a 1964

September 26, 1963,

6ik

, originally issued in the
(an add! tiona1 $100,092,000 was issued Oeto
amount of $ 799~(>OO I , the additional and original bills
to be freely interchangeable.
182 -day bills, for $

1m{

800~,000,

or thereabouts, to be dated
orwJ
December 26, 1963 , and to mature _~J~un~e~27!:;r-:5~1~9_6_4_ __

IXBJ

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding as hereinafter provided, and at maturity their
amount will be payable without interest.

f~e

They will be issued in bea.rer form 01111,

and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 ~
$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 Standard time,

Friday, December 20,

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

1963_

Each tender

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

TREASURY DEPARTMENT

IMMEDIATE RELEASE

December

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
two series of Treasury bills to the aggregate amount of
100,000,000,or thereabouts, for cash and in exchange for
isury bills maturing December 26,1963, in the amount of
099,889,000, as follows:
9l-day bills (to maturity date) to be issued December 26,1963,
amount of $1,300,000,000, or thereabouts, representing an
Ltional amount of bills dated September 26, 1963, and to mature
~h 26, 1964, originally issued in the amount of $799,927,000 (an
Ltional $100,092,000 was issued October 28, 1963), the additional
original bills to be freely interchangeable.

~he

l82-day bills, for $800,000,000, or thereabouts, to be dated
~mber 26, 1963, and to mature June 25, 1964.
The bills of both series will be issued on a discount basis under
Detitive and noncompetitive bidding as hereinafter provided, and at
lrity their face amount will be payable without interest. They
1 be issued in bearer form only, and in denominations of $1,000,
JOO, $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 Standard
?, Friday, December 20, 1963.
Tenders will not be
=ived at the Treasury De~artment, Washington. Each tender must
for an even multiple of $1,000, and in the case of competitive
jers the price offered must be expressed on the basis of 100,
~ not more than three decimals, e. g., 99.925.
Fractions may not
lsed. It is urged that tenders be made on the printed forms and
~arded in the special envelopes which will be supplied by Federal
~rve Banks or Branches on application therefor.
Banki~~ institutions generally may submit tenders for account of
Gomers provided the names of the customers are set forth in such
:)ers. Others than banking institutions will not be permitted to
nit tenders except for their own account. Tenders will be received
;10Ut deposit from incorporated banks and trust companies and from
)onsible a~d recognized dealers in investment securities. Tenders
n others must be accompanied by payment of 2 percent of the face
lnt of Treasury bills applied for, unless the tenders are
)mpanied by an express guaranty of payment by an incorporated bank
~rust company.

D-1075

- 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 DepartInlen t 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
September 26,1963,( 91~ays remaining until maturit¥ date on
and noncompetitive tenders for ~ 100,000
March 26, 1964)
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 December 26, 1963,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 26,1963·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 fr~
any Federal Reserve Bank or Branch.
000

December 19, 1963

DRAFT - Press Release
For Immediate Release

UNITED STATES AND NEXICO RENEW $75 MILLION
EXCHAilGE AGREEHENT
Secretary of the TreasurY4 vouglas Dillon, Mexican
Ambassador Antonio Carrillo Flores, and Julian Saenz
Hinojosa, Minister of the Embassy of Mexico, today signed a
$75,000,000 Exchange Agreement between the United States
Treasury and the Government and Central Bank of Mexico.
~ ..d~<d
I."

The agreement replaces) and"renews) one for a similar amount
which will expire at the end of 1963.
The new agreement represents an extension of stabilization"
arrangements designed to assist !-lexico in its continuing
efforts to promote econoillic stability and freedom in its
trade and exchange system.

Such arrangements between the

United States and Hexico have been in effect since 1941,
and have proved beneficial to

the financial relationship

between the two countries.
The new agreement covers a 2-year period until
December 31, 1965.

It will, as in the past, be operated in

close coordination with the activities of the International
Monetary Fund.

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
UNITED STATES AND MEXICO RENEW $75 MILLION
EXCHANGE AGREEMENT
Secretary of the Treasury Douglas Dillon, Mexican Ambassador
Antonio Carrillo Flores, and Julian Saenz Hinojosa, Minister of
the Embassy of Mexico, today signed a $75,000,000 Exchange
Agreement between the United States Treasury and the Government
and Central Bank of Mexico.
effect renews,

The agreement replaces, and in

one for a similar amount which will expire at

the end of 1963.
The new agreement represents an extension of stabilization
arrangements designed to assist Mexico in its continuing
efforts to promote economic stability and freedom in its trade
and exchange system.

Such arrangements between the United

States and Mexico have been in effect since 1941, and have
proved beneficial to the financial relationship between the
two countries.
The new agreement covers a 2-year period until December 31,

1965.

It will, as in the past, be operated in close coordination

with the activities of the International Monetary Fund.

000

D-l076

I
I

TREASURY DEPARTMENT

December 20, 1963

rL':lliASJ?,Y

Dl)~IbIOn
Ulml-~~\ T~;E

The

'l'reas~ry

ST~LL ~iliI1n"Ol~CIEG

Department has determined that steel reinforc-

inb bars from Canada,

r.k'U1ufa·~tured

by l;cstern Canada Steel Limited

th..cougb its subsidiary, tile Vancouver
,/oncouvcr,

~anada,

DAl-\S

Ali'l'IDTJj·J'lilv ACT

[-\0 I

ling

~':ills

Limited of

are being, or arc; likely to lie, sold at less

than fair value \·rithin the [:leaning of the Antidumping Act.
Ac::ordingly, this case :LS being referred to the United states
Tariff Corn.i''1ission for an in.jury determination.
i:otice of the determination and of the reference of the case
to the Tariff COmr.J.iss:;'on vill be published in the Federal Register.
The dollar value of imports received durin[; the year
approximately 030,000.

1962

was

TREASURY DEPARTMENT

December 20, 1963

FOrt Hr·1EDIA1'E RELEASE
TREASURY DECISION ON STEEL REINFORCING BARS
UNDER THE ANTIDUHPING ACT

The Treasury Department has determined that steel reinforcing bars from Canada, manufactured by Western Canada Steel Limited
through its subsidiary, the Vancouver Rolling Hills Limited of
Vancouver) Canada, are being, or are likely to be, sold at less
than fair value within the meaning of the Antidumping Act.
Accordingly, this case is being referred to the United states
Tariff Commission for an injury determination.
Notice of the determination and of the reference of the case
to the Tariff Commission will be published in the Federal Register.
The dollar value of imports received during the year 1962 was
approximately $830,000.

.'.. ~. "t·, ~.: r~'!:.:f(5,
Sat.u.rd!l' DHlllber 21. 19('3-_
r~ JL·...:

lOR

;ur~F~\~)r:

i'RE.· _:JHY'.;, fir.EUX :3ILL

JP'r~L

...

The r...asury Dej)urtaent announced 1.RSt. even1ng t.hat. tbI~n,if:trf1 for t.wo aeriu"
Treuur,y billa, OM se-ries "(P') be an addit10nal issue of the tJil13 dal.:(; -'ept.er!lber 26, 1
196), and the ot.her serice t.o be dnted o.c.ber 2(J, 196':;, whiCl; were o~'fered on
~
bel" 16, were opened at t.he federal rleserve r·:.anka on ~ber ;:.J. ;.ender:.; were ~':4
tor~,l,)OO,CXY),OOO, or there8b'')ut~, 'J! 91~ b1ll~ and for :~. j,J,»)),,);y'), or t.he
ot 1f.2-dtly bUls _ 'the details of 'thI' two "riftS cU"e ;;..a 10110',,",5:
,

n....

RAr«D: OF ACC;: i'1':-:n
C~PtrITI\!_

~r:6:

_---_.Moe
99.115

99.106

!I'

99.110

Approx.·
Anamal

).529 l

3.522''('

Applied. For
-1i

)1,571,(XXJ

8h1Ga1O
St. Louie
JU.rmeapolla
lauu C1t.)r
Dallu
San P't'a.nc1eco
'rIJrAL3

Acoepted
$
)6,ln,OOO

1,u1B,261,(X)O
)0,210.000

f44,639.000:

21,)69,000

26,120,000.

12,L,90,:)':X)

12,h)$,00)

26,466,00)
196,174, O(})

At.lanta

Y..
II

SiP, .1)4
~b.l>O
)i~ •• 151

for at. t.he low ~~rice Wni.l ;lcoepted
of t.he aJIOWlt of 182-day b1llo bid for ut the low pl'lco :.Ia.:; acceyv"d

D1ftr1ct
Bo.tan
lev York
PbUadelpi;la
Cl...-.l.am
R1ebDond

!!I

I
I

3.50lt

!I ExcepUna one tender or ,~l.,j"JO, 000
8n. of t.he amount of 91-daQr bUlfS bid
69~

••

\~~t.e

)9,997,000

1e,9L9,OOO
21,844,000

101,112,000
l09,)n,roJ

~2,~~0,420,OOO

15,210,000

AR,elied F::>r.
:$
1\,621,roJ

i,cceeW
J: 3,9S4,-

t,16),G:.;o

;.;cl,SOS.OII
l,On••

1,;~7(l,3iI\),J,j()

92,&~6,\)O')

1,jj2,(}.J')

21,009,000
15h, 424,000
33,775,000:

m,'XYJ

I),
2
21,844,JOO
.33,502,000
87,0$1,OOJ:
Sl,)01,395,000

7, 566, t),))
1) 2, )62, CKXJ

11,194,VfJ(}

n,62,..
1,991.-

6,626.86, S91,7,~.

~;,I~ 76,'}(1.)

3,1"''-

10,101,f)...X)
39,;;71,(X)()
"L)S26,OOO

4,lSk.-

.n,7~1, r(i;O,(JI.X)

9,2».-

_ 21,60),$801,6)1,-

Includas $212,197,000 ~titi..,@ tenders accepted at. u~ r.>.ver.i ,:e : rice or 99.1»
Includes ~·S1 ,6U9,;)Q() nonc(lRp8Ut.ive t.endera acce:;-)wd at 't,::c_: 2.v~r~~ ,~rlc. or 91.$
')n a cou.pon iasue 01 t.he ssa le~""h and for the saM taIQO'!.l.nc i.nve3t.I,d, i.r.e nt.1llll
t.hese billa ~d ylroYide Ji.1d~' or ).61.-', ~'cJl" the 91-d .... bill:.., hll<j 3.79., t. tI
1f:2-dq bUls. Inter-st rC<.t.cs Xl bills are ',~~ot.ed in t,:r',.8 of bank discowR ""
tohe ret1JZ"f1 relatAd t.o t.be f~ce n.aount ;.)J t.ho bills pay.ole '. t m: tur1t.y rat.blr'the QIIOUftt il1Ye:sted ~ti t.he1l" length in actual n~r of GujS r'l;.. t.ed t,o • ~
)"tar. In cOrlt.rast, yielol5 on cert.it1.catea, notes, :md c' 'Jr.d~ ,-.re c~l\1~d 1D .....
of 1nwr' ~t Oft t.be UIOWlt inv".st.ed, Z-n{; relate the JlUI'Ibcr of os,J's r;.lII1ainiJtg
int.e ....at. ~Dt, ;.>eriod to t.he ct.u.sl malber or ~. 111 :.he ':".?ri.xl, .. ith ..
-~--
c~ 1 t JIlOr8 t.han one c~}lQIl .. )·<:riod is lnvalYed.

it.!!

TREASURY DEPARTMENT
RELEASE A. M. NE\·.'SPAPERS,

lTdq, December 21, 1963.
RESULTS OF TREASURY 1 S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
bills, one series to be an additional issue of the bills dated September 26,
J, and the other spries to ttj dated December 26, 1963, which were offered on Decem16, were opened at the Federal Reserve Banks on December 20. Tenders were invited
$1,300,000,000, or thereabouts, of 91-day bills and for $800,000,000, or thereabouts,
82-day bills. The details of the two sori~s are as follows:
LSury

lE OF ACCEPl'ED
~rITI~ BIDS:

91-day Treasury bills
182-day Treasury bills
mat uring March 26, 1964
maturing June 25, 1964
Approx. Equiv.
Approx. Equiv.
Price
Annual Rate
Price
Annual Rate
High
99.115 a/
3.501%
98.154
3.651%
Low
99.108 3.529%
98.150
3.659%
Average
99.110
98.151
3.522% Y
3.657%
Excepting one tender of $1,400,000
89% of the amount of 91-day bills bid for at the low price was accepted
69% of the amount of 182-day bills bin for at the low price was accepted

.tt TENDERS APPLIED FOR AND ACCEPTED BY FEDeRAL RESERVE DISTRICTS:

istrict
oston
aw York
:liladelphia
leve1arrl
iclunond
tlanta
:rl.cago
~. Louis
inneapo1is
ms~s City
111as
m ?rancisco
TOTALS

A;e,e1ied For
$
37,577,000
1,418,261,000
30,210,000
27,3-59,000
12, t~90, 000
26,466,000
196,174,000
39,997,000
18,9u9,000
2l,BUL.,ooo
101,712,000
109,37l z000
$2,OuO,420,000

Accepted
$
J6,177,000
844,639,000
1.5,210,000
26,720,000
12,435,000
21,889,000
154,42~,OOO

33,775,000
13,729,000
21,844,000
33,502,000
87 z 051 z 000
$1,301,395,000

A,EE1ied For
$ 14,621,000
1,276,34.0,000
8,163,000
92,856,000
1,992,000
7,566,000
192,362,000
17,194,000
5,476,000
10,707,000
39,977,000
54 z526 z0oo
$1,721,780,000

Acce£ted
$ 3,954,000
581,505,000
3,057,000
71,623,000
1,992,000
6,626,000
86,591,000
7,924,000
3,176,000
9,233,000
4,354,000
21!603,!000
$801,638,000

:ncludes $212,197,000 noncompetitive tenders accepted at the average price of 99.110
:ncludes $57,649,000 noncompetitive tp~ders accepted at the average price of 9B.151
ma coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.61:t, for the 91-day bills, and 3.79fo, for the
182-day bills. Interest rates on bills are quoted in t~r~s of bank discount with
the return related to the face amount of the bills payable at maturity rather than
the amount invested and their length in actual number of days related to a 360-day
year. In contrast, yields on certificates, notes, and bonds are computed in terms
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semiannual
compounding if more than one coupon period is involved.
7"

I (

WAS~~GTON.

c.,

Dec. 20 - The Secretary of the Treasury

announced today th~t. in accordance with President Johnson's program
for holding down expenditures in fiscal year 1965, he has directed
the closing of 17 Coast Guard rescue stQ.tions along the Atlantic
seacoast.

The closures will eliminate 145

milit~v

personnel and

save approximately $1,000,000 annually.
Faster and more capable rescue eqUipment permits wider spaciftg.
of Coast Guard rescue stations.

Phasing out of certain stations which

have outlived their usefulness had been contempla.ted in Coast Guard long

range plans according to Treasury spokesmen,
resul t in phasing out the following

()ift ••

~H_'"

action will

uied stations early next year:

Burnt Island Lifeboat Station, Maine
Cape Elizabeth Lifeboat Station, Maine
Coast Guard Mooring, Cross Island, Maine
Straitsmouth Lifeboat Station, Mass.
Nahant Lifeboat Station, Mass.
~y Head Lifeboat Statial, ~. Cl-V+t'lhu~
L1ttle Egg Inlet Lifeboat Station, .N. J.
Monmouth Beach Lifeboat Station, N. J.
Corson Inlet Lifeboat Station, N. J.
Hereford Inlet Lifeboat Station, N. J.
Tom's River Lifeboat Station, N. J.
Little Island Lifeboat Station, Va.
Metomkin Inlet Lifeboat Station, Va.
Little Machipongo Lifeboat Station, Va.
Cobb Island Lifeboat Station, Va.
Caffeys Inlet Lifeboat Station, N. C.
Kill Devil Hills Lifeboat Station, N. C.

I '

I< l,te.hi~.l~~

:.'j

--y;,~

) ~I

(

T:1e Trcasun' DC'.)3rtlJ\Cnt announced toJa'.' th2.t seventeen Coast
.

~-'

Guard 1 i fc1)oat stations :lI1d r:1oorin?s arc no
\Jein!~

closed.

lon.(~er

required ancl are

Closin:; these stations \-.'ill save 145 r1ilitary billets

and resul t in annual savinr;s estir:1ated at 51 million.
LI!'ll'roved dcsij'll and increased rescue
lifeboat station rescue

craft~-;nu
__

~afl;:hi 1 it ies

of modern

Coast - 2~i:lrtl-~-e-r91 have outmoded
~

---.,.1

TREASURY DEPARTMENT
December 20, 1963

FOR IMMEDIATE RELEASE
COAST GUARD CLOSING DOWN 17 INSTALLATIONS
The Treasury Department announced today that seventeen
Coast Guard lifeboat stations and moorings are no longer
required and are being closed.

Closing these stations will

eliminate 145 military billets and result in annual savings
estimated at $1 million.
Improved design and increased rescue capabilities of
modern lifeboat station rescue craft and techniques have
outmoded the need for these stations.
This action will result in phasing out the following
stations early next year:
Burnt Island Lifeboat Station, Maine
Cape Elizabeth Lifeboat Station, Maine
Coast Guard Mooring, Cross Island, Maine
Straitsmouth Lifeboat Station, Mass.
Nahant Lifeboat Station, Mass.
Cuttyhunk Lifeboat Station, Mass.
Little Egg Inlet Lifeboat Station, N.J.
Monmouth Beach Lifeboat Station, NoJ.
Corson Inlet Lifeboat Station, N.Jo
Hereford Inlet Lifeboat Station, N.J.
Tom's River Lifeboat Station, N.J.
Little Island Lifeboat Station, Va.
Metomkin Inlet Lifeboat Station, Va.
Little Machipongo Lifeboat Station, Va.
Cobb Island Lifeboat Station, Va.
Caffeys Inlet Lifeboat Station, N.C.
Kill Devil Hills Lifeboat Station, NoC.

D-1078

000

- 3 -

and exchange tenders will receive equal treatment.

Cash adjustments will be made

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
local taxing authority.

any

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 19M

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,

scribe the terms of the Treasury bills and govern the conditions of their.issue.
Copies of the circular may be obta.1ned from any Federal Reserve Bank or Branch •.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the specia.1 envelopes which Will

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.
Dmnediately 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
ing until maturity date on
$lmi0 or less for the

October 3, 1963

April 2, 1964

Wl1f

$2(~WfO

x:mo

days remain-

) and noncompetitive tenders for

0\IiW9

182 -day bills without stated price from anyone

iiki

bidder will be accepted in full at the average price (in three decimals) of a.ccepted 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

Janua.~

1964

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

Janua.~ 1964

• Cash

TREASURY DEPARTMENT
Washington
December 23, 1963

FOR IMMEDIATE RELEASE,

TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for tvo series
of Treasury bills to the aggregate amount of $

2,100,000,000, or thereabouts, tor

cash and in exchange for Treasury bills maturing

ffi

January 2, 1964

of $ 2,100,885,000 , as follows:

ffi

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

ffi

, in the amount

Janua~ 1964

in the amount of $ lz300lft0zOOo , or thereabouts, represent.
ing an additional amount of bills dated
and to mature

April 2£ii964

amount of $ 798'HH oOO

October 3, 1963

ffi

, originally issued in the
(an additional $100,092,000 was issued OctolM
, the additional and original bills 1963'

to be freely interchangeable.
182

ffii

-day bills, for $ 800,098rl00
Jan~

1964

, or thereabouts, to be dated

,and to mature _ _.;..JU.;.;.ly..z...xffii-i2~"Tl_9_6~4_ __

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 bee.rer form only,

Friday. December 27. 196L'

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

Each tender

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

TREASURY DEPARTMENT

December 23, 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 January 2,1964,
in the amount of
$2,100,885,000, as follows:
91-day bills (to maturity date) to be issued January 2, 1964, in
the amount of $1,300,000,000, or thereabouts, representing an
additional amount of bills dated October 3, 1963, and to mature
April 2, 1964, originally issued in the amount of $798,154,000 (an
additional $100,092,000 was issued October 28, 1963), the additional
and original bills to be freely interchangeable.
182-day bills, for $800,000,000, or thereabouts, to be dated
January 2, 1964, and to mature July 2, 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, $lO,OOO( $50,000, $100,000, $500,000 and $1,000.000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p,m., Eastern Standard time,
:Friday, December 27, 196 J.
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
;N'ithout deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
~mount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
>r trust company.
D-1079

- 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 Departf'.H':I1 t 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, 1n 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
Oc tober J, llJ63,
(91-days remaining until mat uri t¥ date on
Apri 1 2, 1<)64)
and noncompeti tl ve tende rs 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 January 2, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing Janu<lry 2, 1964. 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 lOBS 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 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 insuranc e 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 taJmble 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

- 3 -

CXlIJlpL

'"""

" ,

['rom nIl tOJ<nLlon noVT or hercnfter imposed on the principnl or interest

thereof by any State, or o.ny of the possesGions of the United States, or by any
locn 1, to..'Cinc; nuthori ty.

For purposes of taxation the amount of discount at which

'l'rensury "0 HIs nre oric;inally sold by the United sto.te sis considered to be interest
Uncler SecUons 1J,1 (b) ond 1221 (5) of the Internal Revenue Code of 1954 the runount
of discount [l,t Ilhich bills issued hercunder are sold is not considered to accrue
until such bills are Gold, redeemed or othe!"\rise disposed of, and such bills are
excluded fr(·lrl consideration o.s cnpi tal assets.

AccordinGly, the owner of Treasury

bills (other tho,n l:tfe insurance companies) issued hereunder need include in his income tr>.x l'chu'n only the difference
on oric tnn 1,

if}:;lIf'

OJ'

bd~'Teen

the price paid for such bills) "meLher

on subsequent purchase, and the amount actually received either

upon snlc or 1'euc1ilption at maturity durinG the to.xable year for which the return is
moue, ns orcHnnl-:;r Lain or loss.
'J'l'casUl',Y Jiep,1,rLmcnt Circulnr No. 'US (current revision) and this notice, presc1'i1)e the tcnllG of the TrC[l,sury bills and Govern the conditions of their issue.
Copies of the

(~ireulo.r

mo,y be obtained from any Federal Rescrve Bank or Branch.

- 2 -

Treasury bills applied for, unless the tenders are accompanied by an express

:uaranty of payment by an incorporated bank or trust company.

··8OOOOBOOooeooOOOOOfXXJOOc

Immediately after the closine hour, tenders will be opened at the Federal Re:eTV'e Banks and
~reasury
~ing

Br~ches,

follm"inEj 'Thich public announcement will be made by the

Department of the amount IJJ1d price ranee of accepted bids.

tenders will be advised of the acceptance or rejection thereof.

Those submi tThe Secretary

,s the Treasury exprcssly reserves the right to accept or reject any or all tenders,
_n whole or in part, and his action in any such respect shall be final.
tlese reservations, noncompetitive tenders for $200~O

Subject to

or less without stated

·rice from any one bidder will be accepted in full at the average price (in three
c~cimals)

of accepted competitive bids.

Payment of accepted tenders at the prices

:ffered must be made or completed at the Federal Reserve Banks in cash or other im~diately

avai lab Ie funds on ........;:J;..:;;anu=:..:.;a.;.~~3~JL.....:l:;;.;9;..;:6;..;:4;....__ ¥~i{ilfltKQt002':jY.I:!?ll~OOQ(]:oo:(~:pxaOO:n:l~

The income derived frmn Treasury bills, whether interest or gain from the sale
other disposition of the bills, does not have any exemption, as such, and loss
'om the sale or other disposition of Treasury bills does not have any special treat-

:nt, as such, under the Internal Revenue Code of 1954.

The bills are subject to

:tate, inheritance, gift or other excise taxes, whether Federal or State, but are

(NoWi, tbltu'~ .. - - ~

I
',1

,1
r'

that tIIett

bills Will run ror 363 daya, tlIe
discount rate will be computed CIa ,
bank discount basis of 360 dIfa, ..
is current~ the practice CD aUt...
of Treasury bills. )

---~

-.-----

TH.l'!t,SUJ if. m:p.An1'i 18Irr
iT[',shi n:::;tol1

December 23, 1963

'.1'hc Tl'C'c,::mry Departmcnt,

or thel'cobouts, of

uJ th:tc

pul)l~i,C

noticc,

invi~cs

tendero for ~i 1,OOO,OOQd

-dr.;,r Treo,sury bJJ.l::;, to lJC isrmed on a di scount bo.3is und(

:363

ffi

COll})e:'.ii:.ive and noncompctltl vc bi.ddlnS 0.:, here:lnfl.:,:'tcr provided.
~Cl".iCf; lTil).

:i'01"1

C'nl~

be elutcd _.;:,J_Bn_ua_ry..:..._3....,:.....,...1_9_64
______ , end 1-rill ll1o.tu.l'C

December 31, 196&

ill

on1:r, ~;lld in dcnOliLlno.t ",on3 of :;;1,000, <;;j, 000,

::il, 000

The bills of this

::ao, 000,

:;;50,000,

:;aoo, 000,

~500,(X

000 (r,lo.tul'lL:r value).

'rendc:..'s \Till bc

l'C(;l:.i, 'J.,xl D,t Fc(leJ:~'.l r:C;3Cl'VC

n['n1~~j

[~nd

B:L'nl1cllcG up to the elor.;in(l

Monday, December 30, 1963
• Tendon
----~~~~--'~----~---'rIll not be received ('.t the 'l'reaGul'Y Depnrtmcnt, Ho.shincton. Each tender must be for
OJ)

even J.mJtiple of

:;il, 000,

unO. in the caGe o:C co;u})et:i.I:.:i.ve tender::; the price offered

'n~.:::O~ be e;;:pl'er~sed on the bo.c:i.s oi' 100, ,r1'1:.h not ]'1f»~'C than three dcctm:tlG, e. C., 99.9

F:;"C'.e l,:ionr; uny not be ltGco..
~'o~~',"CTcl.cd
L~':-,l1ches

It :i.:J lu'ccd thc-.t -cenrlcr::> be n[l.<lc on the pl'in

in the opcciel envelopes vlri.ch ,rUJ. be G1J,PIJ1.i.c<1 by l"edel'nl l1c,sc:i."Ve 13cnks or
on £'-l!pl:t.cC'.tion thcrei'or.

&nJ~inG

lnGt.itution:.; ccne:CT,ll:r r.1C'.y CUU1;t:t.t tenO_erc :;'m: nccount of customers pro-

videa the nCI.1e~ of the custOinCl'G

O,l'C

::.:et .L'o:c'l;h in such tei1c1cl's.

Ot.he1'3 than bunkinG

Tenders 'rill be l'cceivcd 1-rlt.hout dcpo~.i..t :':'l'om incorporated bDnl~S 3Jld trust companiesnl1d :;:'roi,1 }'csponsiuJ.c nnd recoC;ni zed deo,le::-cc j.n inv(!stment secul'i ties.
others mtlGt be c.ccoli1J.)['nied

l)~r l!t,,~,"j.lcn'c

oi' 2 pel'cent of the facc amount

Tenders frot

TREASURY DEPARTMENT

December 23, 1963
IMMEDIATE RELEASE
TREASURY OFFERS $1 BILLION ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders for
,000,000,000, or thereabouts, of 363-day Treasury bills, to be
~ued on a discount basis under competitive and noncompetitive bidding
_ hereinafter provided. The bills of this series will be dated
-mary 3, 1964, and will mature December 31, 1964, when the face
~Junt will be payable without interest.
They will be issued in
~rer form only, and in denominations of $1,000, $5,000, $10,000,
),000, $100,000, $500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up
the closing hour, one-thirty p.m., Eastern Standard time, Monday,
~ember 30, 1963.
Tenders will not be received at the Treasury
)artment, Washington. Each tender must be for an even multiple of
000, and in the case of competitive tenders the price offered must
expressed on the basis of 100, with not more than three decimals,
g., 99.925. Fractions may not be used. (Notwithstanding the fact
,it these bills will run for 363 clAY, the discount rate will be
lputed on a bank discount basis of 360 days, as is currently the
lctice on all issued of Treasury bills.) It is urged that tenders
,made on the printed forms and forwarded in the special envelopes
.ch will be supplied by Federal Reserve Banks or Branches on
,1ication therefor.
Banking institutions generally may submit tenders for account of
tamers provided the names of the customers are set forth in such
~ders.
Others than banking institutions will not be permitted to
mit 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 inves tment securities. Tenders
Om others must be accompanied by payment of 2 percent of the face
~unt of Treasury bills cpplied for, unless the tenders are accompanied
an express guaranty of payment by an incorporated bank or trust
:pany .
. Immediately after the closing hour, tenders will be opened at the
"eral Reserve Banks and Branches, following which pub lic announcement
'1 be made by the Treasury Department of the amount and price range
accepted bids. Those submitting tenders will be advised of the

)80

-2 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 ~
less without stated price from anyone bidder will be accepted in full
at the average price (in three decimals) of accepted competitive bids.
Payment of accepted tenders at the prices offered must be made or
completed at the Federal Reserve Banks in cash or other immediately
available funds on January 3, 1964.
The income derived from Treasury bills, whether interest or ga~
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 bi lIs does not have any spec ia 1 trea tmen t, 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 taxa tion 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
taxa tion the .]Oloun t of d iscoun tat wh ich Treasury hi lIs 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 rpturn is made, as ordinary gain or
loss.
Treasury Department Circular No. 418 (current revision) and th~
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue. Copies of the circular may be obtained fie
any Federal Reserve Bank or Branch.

000

?Ja a::L-:A~' ,: A. :i. ,. -.. ;j.' V . ('. ,
:",turda,l, ~cemt>er 20 t 1 ;6).

"he ~"'3'Jrl .put..:nftnt announced 1a.t .,"ni~ . hat tt.. tand.en tor t .. IU'1ee tI
.re••ury 'o111a, one •• rie. to ue an aJ'H.tl.onal i.sue ot' tn. :~Ul.. dat,ad Octob.r ), l~l
and tl,. ou.:- •• rla. to 00 dlit.ed J<iClUar,:, 2, 1~4, vtilCH 'Were off....d 011 .....u.r '),

.... re olY4ned at

\..,~

<.1,)00,0.0,000, or

Dr
.

.A .

l,~~-da./
-

)

0111s.

... " , f l
J ~
1

... 1M .... 1.! IV

.:H :);:.,

cetera! (e6~rVe '~3-j(a on DeooRDer 27.
~L.reabout$, of ,Il--J8,i bills a;.d j'o1'
'U:.&

jeUila 0;
;1-:<1/

ti£

two se:riea are

"~;

ender.Kere invited t.
.JJ,.1V-.:,u,x), or Ul.....bode.
oHo'Wtn

zoeasur,;>' bill.

:or.:;tur~,.1.2rll .~ 1 1~4
,I.;Jprox.~qui'· •

?f'1ce
'i';ll
i.<)w
~

•• rae~·

:19.l.J..4

99.107
'H. 109

Annual ·iate

).soss
).S))s

3.5 2411:1

8sS of the uount of 91-day bUl.8 bid tor at the low price ... aeeept-ed
,8,& ot the uoUDt ot 182-<1&, bUll bid tor at the low 91"108 VA. aooeptecl

TREASURY DEPARTMENT
RELEASE A. M. NEWSPAPERS,
relay, December 28, 1963.

December 27, 196)

RESULTS OF T£tEASURY'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 October 3, 1963,
the other series to be dated January 2, 1964, which were offered on December 23,
opened at the Federal neserve Banks on December 27. Tenders were invited for
00,000,000, or thereabouts, of 91-day bills and for ~800,000,000, or thereabouts,
82-day bills. The details of the two series are as follows:

O~'

ACCEPIED

;F:1ITIVE BIDS:

High

3l-day Treasury bills
maturing April 2, 1964
Approx. Equiv.
Price
Annual nate
99.114
99.107
99.109

Low
Average

).505%
3.533%
).524%

182-day Treasury bills
maturing July 2, 1964
Approx. Equiv.
Price
Annual aate
98.164
98.151
98.154

3.632%
3.657%
3.651%

85% of the amount of 9l-day bills bid for at the low price was accepted
58% of the amount of 182-day bills bid for at the low price was accepted
L TENDERS

APPLI.~D

10ft Al\-iD AC:::EPI'ED BY FEDERAL

RES&1.v~

DISTRICTS:

Applied For
Accepted
Applied For
Accepted
$ 27,122,000
$ 16,972 ,000
~
4,752,000
4,752,000
'York
1,u91,946,000
885,726,000
1,203,636,000 $ 670,436,000
adelphia
27,615,000
12,023,000
7,835,000
2,835,000
eland
29,016,000
29,016,000
10,035,000
9,885,000
mond
9,649,000
9,649,000
2,292,000
2,292,000
nta
24,817,000
20,817,000
6,090,000
5,590,000
ago
210,442,000
155,177,000
89,847,000
36,427,000
Louis
36,778,000
30,748,000
11,225,000
9,183,000
eapolis
25,387,000
17,512,000
5,323,000
3,11.3 ,000
a.s City
26,586,000
26,436,000
10,015,000
9,915,000
as
10),720,000
41,670,000
37,420,000
7,160,000
,Francisco
71,242,000
54,517,000
58,250,000
38,750,000
TOTALS
$2,084,)20,000 $1,300,263,000 a/ ~1,446,720,000 $ 800,338,000 £/
ncludes $211,499,000 noncompetitive tenders accepted at the average price of 99.109
ncludes 145,007,000 noncompetitive tenders accepted at the average price of 98.154
n a coupon issu.e of the same length and for the same amount invested, the rett1I'n on
hBese bills would provide yields of 3.61%, for the 91-day bills, and 3.78%, for the
2-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 rather than the
~unt invested and their length in actual number of days related to a 360-day year.
~ contrast, yields on certificates, notes, and bonds are computed in terms of interest
1 ~he amount invested, and relate the number of days remaining in an interest payment
~nod to the actual number of days in the period, witll semiannual compounding if more
lan one coupon period is involved.

!rict
.on

TREASURY DEPARTMENT

December 24,1963

FOR n,1}!.EDIATE RElEASE
TREASURY DECISION ON HALIBUT STEAK
UND~-q THE ANTIDUNPING ACT

The Treasury Department has determined that halibut steak
from Japan is not being, nor likelY to be, sold in the United
States at less than fair value within the meaning of the Antidwrrping 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 October 1, 1962, through June 31, 1963,
was approximatelY $194,000.

TREASURY DEPARTMENT

December 24,1963

FOR IMMEDIATE RELEASE
TREASURY DECISION ON HALIBUT STEAK
UNDER THE ANTIDUMPING ACT

The Treasury Department has determined that halibut steak
from Japan 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 October 1, 1962, through June 31, 1963,
was approximately $194,000.

TREASURY DEPAR'IMEIfr
Washington

8 -:-.
FOR RELEASE ON DELIVERY

REMARKS OF mE HONORABLE ROBERT V. ROOSA,
UNDER SECREl'ARY OF 'lHE TREASURY FOR mNETARY AFFAIRS,

AT THE JOINT LUNCHEON OF mE AMERICAN ECONOMIC
ASSOC IATION AND THE Al€RICAN FINANCE ASSOCIATION,
STATLER-HILTON HOTEL BOSTON, MASSACHUSETTS,
SATUWAY, D~ 2~, 1963, 12:30 P.M., EST

BALANCE OF PAYMENTS ADJUSTMENT AND rnTERNATIONAL LIQUIDITY
Thi s seems to be the time for studies of international liquidity.

one already deep in such efforts, I have no wish to detract from their
importance.

But while that useful work is in progress, it is crucially

important to keep our vision focused on other, even more basic questions
questions concerning the processes of balance of payments adjustment among
countries, in the world in which we are now living -. processes that any
arrangements for liquidity, however designed, may at best only be able to
facilitate, but never displace.
The enduring questions, with which economists and statesmen have
st~led

at least since the time of Rume, center on the causes and the

correctives for deficits or surpluses in the external accounts of major
trading and reserve-holding countries.

To be sure, external liquidity,

readily available to a deficit country, can if wisely used enable that country
to move to restore balance between its earnings and its expenditures abroad
in an orderly manner.

D-1082

Without adequate resources either in the fonn of

- 2 -

liquid assets in being or credit facilities, a deficit country might be
i'orced harshly to disrupt its trade with other countries and gravely to
dislocate the performance of its home economy, in order to get its external
books into balance.

But it is well to remind om-selves that no form nor

volume of liquidity can relieve that country from the inescapable necessity
of ultimately reaching a satisfactory balance.

And the other side of the

coin is that countries cannot expect to maintain large over-all surpluses,
year after year, without moving back into equilibrium.
This is why, before fastening too many hopes on the outcome of our
studies of future l i qui di ty, we should try to think through the implications of this underlying premise:

that a stable system of international

economic relations among sovereign nations can be sustained only if
tendencies and pressures exist toward equilibrium in the external accounts
of each.

The final balancing item may under some conditions appropriately

be a voluntary movement of capital, evening out for anyone year, or two,
or three, the deficits in other transactions of some countries against the
sUl"Pluses of others.

But each country must, through all the intermingled

movements of goods and capital that follow each disturbing cyclical or
structural impulse, reassert and encourage a retm-n toward the kind of
balance in its external accounts as a whole that can be sustained over
time -- including, of course, a normal flow of capital and aid from the
developed to the developing nations.

- 3 I

Because the processes of adjustment for any particular country always
Jroceed beneath a monetary veil, there have understandably been frequent
fonrulations that seek to fit all of the essentials of adjustment into the
nechanics of monetary arrangements -- or to explain all the deficiencies of
the adjustment process in terms of existing monetary arrangements.

Three

different and somewhat conflicting approaches of this kind have been injected
into recent discussions.

Each has same useful insights, but each has tended

to deflect attention fram other elements of the adjustment process.

The

natural but unfortunate result has been to raise unrealistic hopes for the
ready solution of difficult. problew.s through a simple monetary formula.
(1) One of these formulations attributes the continued imbalance in
accounts between Europe and the United States during recent years exclusively
to the presumed ease vith which the United States could finance its deficit
through a build-up in dollar holdings abroad.

This process, it has been

said, has generated excessive international liquidity, with inflationary
repercussions on the domestic economies of the gurplus countries in Europe.
Those offering this analysis find a solution in abandoning the "gold-exchange

standard" -- by which they mean el:1Jninatlng dollars, or at least further
growth in dollars, from the reserve balances of other countries.

Instead,

the supposedly sterner disciplines of the textbook. version of a pure gold
standard would be reimposed, forcing prompt elimination of both the U. S.
deficit and the European surpluses.

(2)

Another Tersj_on, concentrating .ore direetl7 on the 1Dtemal

pod tiOD of the Un1 ted States, tina..

Ileeessary fault vi th the so-called

"gold-~ch&nge standard," but asserts that the United States bY generated

!lore liquidity internally than our eeoncay can absorb daaestieal..l7, and that
thi8 excess liquidity seeping abroad hu preYented the United States traB
balancing its external accounts, whether or not inflationary pressures are
currently visible.

This Tersion finds the solution simply in a tight

dcaestic monetary policy.

It presUll&bly accepts the internal costs of

de flation in a.n effort to promote ex:porta and reduce imports, while

encouraging much higher interest rates in order to attract funds tram
abroad and induce American funds to renain at hCllle.

(3)

A third formulation identifying monetary liquidity and real

adjustment moves in quite the opposite direction, arguing that the liquidity
provided today, both interna.lly and externally, is seriously inadequate.
This version holds that international liquidity and credit arrangements
should be made available on a much larger scale in order to finance &n1
defic its incurred while adjustments are

uk' ng

place -- and that thia

additional liquidity W1ll in fact tend to encourage orderly adjustments.
At the same time, monetary action would be aousht to evoke lID.lch greater
economic actiTity at home, with any repereusaions of this on the external
position cushioned by autClD8.tic dravings on U!.J>le supplies of liquidity
frcm abroad.
Eacb of these formulas offers an important element of warning and
caution to those considering rearrange.ents in the international monetary
system.

'!he nature of the factii ties for generating liquidity, both

, \.:
.'
{-:'
\

- 5 internationally and domestically, as veIl as the volume

liquidity

actually in being, must necessarily play an important part in easing or
aggravating the real problems and processes of adjustment.

The regrettable

element of all three approaches, however, is that of broadening considerations
of some relevance and significance into a supposedly fUll formulation of
both the causes for unbalance and the correctives for achieving equilibrium.
As for the first version, surely few would deny that present arrangements or any arrangements

~or

economizing on the use of gold through provision

of supplementary reserve assets -- Whether in the form of key currencies or
otherwise -- could potentially create possibilities of abuse.

There is no

question that a world hungry for additional reserves, and industrial countries
anxiOUG to restore the freer trading conditions of currency convertibility,
actually

ne~ded

and depended for much more than a decade on the liquidity

provided by continuing modest deficits in the
payments.

~nited

States balance of

But those deficits, instead of being reduced as these needs

passed, did eventually become too large, aggravating the problems of adjustment.
To

concede this, however, is not to say -- as same would have it --

that the added liquidity generated by U. S. deficits was or is the culpable
cause of those internal problems which have emerged recently as serious
inflationary distortions within some European countries.

Surely there is

exaggeration in the theme, now popular in some circles, that Europe is
experiencing inflation solely because the United States is creating too much
international liquidity; or in the idea that reform of the international

- 6 monetary system, aimed at preventing this creation of additional liquidity,
will automatically stop the problems nov plaguing Europe.

This view 1s

appealing, to be sure, to any who might be tempted to shrink from the task
of confronting and controlling inflation at home through appropriate, but
scnnetimes unpalatable, national policies.
find outside one's borders a diabolus
for domestic inflation.

How simple, how fortunate, to
machina to bear the responsibility

How comforting to be told that there are no intern&

problems in the behavior of wage rates, prices, or demand which would not
disappear if countries could only agree on some sort of change in the
internaticnal monetary system, and that the hard changes in taxes or public
expenditures, in capital markets, in agriculture and housing policies, in
international trading practices and in incomes policies that seem to be
called for are not necessary after all.
The appeal of the second approach that sees the problem wolly in
terms of U. S. monetary policy may not, even to observers outside the United
States, be quite as attractive, for the possible unpleasant implications of
a drastically tighter monetary policy in the United States are much clearer
than those implied by a vague call for international monetary reform.

course, there are times when more restrictive monetary policies, both for
domestic and external reasons, can be entirely appropriate, and the resulting check upon excessive investment or consumer spending quite necessary
to assure balanced and sustainable expansion.

But a shrinkage of domestic

liquidity when home unemployment continues widespread, with a resulting
check to investing and spending for goods and services produced not only

- 7 in the United States, but also abroad, has an entirely

d1~ferent

meaning.

If only because of the strategic role of the immense United States economy
in the markets of the world, an imposed deflation would under modern conditions disrupt the orderly evolution of the world economy.

Nor do those

advocating this approach of tight money always recognize that it is the
differentials in rates and in the availability of funds among international
markets that count and that nothing is to be gained by attempts to pass
on our deficit through charges here so extreme that others vould have no
recourse, or may

~eel

they have no recourse, but to respond in kind.

There is no more satisfying wisdom in veering to the other extreme of
analysis, to the version 'Which attributes the problems of balance of' payments
adjustment among the leading countries of the world to inadequate liquidity,
both at home and abroad.

There are indeed Americans who have, perhaps

wishfully, argued that a fresh breakthrough in liquidity arrangements, giving
the United States automatic

~inancing

of its deficits, could somehow spirit

away the disciplines which have exerted such a commanding influence upon
public policy for more than three years -- the need to maintain stable prices
and spur exports; the needs for tying aid and for offsetting military
spending; the need to raise internationally sensitive interest rates and
increase the cost of foreign borrowing in our market in whatever practicable

way cOUld be found to check the outflow of our capital; and the need to cut
taxes in a way that prOlll.ises to cut costs and spur productivity.

:But those

vbo would adopt this approach have too often neglected to specify just what
substitute methods they have in mind for ultimately restoring international
balance before strains to the system, however liberally supplied with

- 8 liquidity, becCll1e unbearable.

Instead, the siren song of "cheap money" too

often lures those who purlue it into the distortions of speculation and the
hardships of innation.

Let me make clear, hOVaTer, that in stressing these defects, I am not
denying the essential place of appropriate liquidity arrangements in the
satisfactory tunctioning of the adjustment processes.
the tendency to transform an element into the whole.

concern is With

While it would be

premature to comment nov on various possibilities for strengthening the
world r s arrangeaents for liquidity, it is never out of place to stress the
importance of many other elements in the process by which the countries ot
the world can maintain a reasonable balance in their external accounts lIhile
moving together toward their goal of sustained and rapid growth.

II
In turning to look at sane of these other elements in the adjustment
process, I need not belabor the point that many of the classical models and
prescriptions are very nearly irrelevant today -- rendered obsolete by dowward rigidities in costs and prices, by the nev importance in the postwar

world of Government transfers for aid and defense, and by the insulation ot
domestic financial markets in varying degrees from a direct response to
international flows of reserres.

Nor have the problems faced by policy-

makers conformed to the classical diagnosis of external deficits accompanied
by excess internal. demand, and vice versa.

And most Significant ot all,

nearly all countries today have placed new conditions on policies designed
to bring the noys of goods and services and capital, inward and outward,
into balance.

- 9 -

Most countries consider it iJ::perative to work toward processes of
international adjustment which are consistent to the fUllest practicable
degree

~th

their domestic goals for the maximizing of employment, the

minimizing of economic fluctuations, and the encouragement of growth,
within that environment of price stability which best promotes these other
aims.

~bese

determined objectives of national economic policy are paralleled

by others, almost as widely accepted, in the international sphere:
ing trade as a means of raising

st~dards

maximiz-

of living; minimizing barriers that

obstruct the movements of goods and capital toward their optimum allocation;
and encouraging the progress of

d~velcping

countries -- all

~thin

the

framework of generally stable exchange rates which best proMotes these
objectives.
It is inevitable in the nature of the world 'We live in tllA.t actions
directed toward any one of these objectives, either the domestic or the
international, will not necessarily harmonize
all the time.

~~th

all of the other objectives

Each country consequently confronts its tasks of achieving

external balance

of maintainir.g a ".iable relation with the rest of the

vorld -- without a fixed or unvarying formula.

In practice, there must be

a continually evolving mix of policies -- some fiscal, some monetary, some
affecting market strJcture, some affecting private incentives.

Same can be

carried out alone, others are dependent upon consultation and complementary
action among a number of countries.

But there is no escaping the need for

deliberate action, and at times for making unwelcome choices, if the main
line of advance is to continue toward this full array of objectives that
most

coun~ries

now accept for

mod~rJ

economic society.

- 10 -

It is neither my intention, nor certainly would it be ~ capability,
to try today to elaborate a general theory of adjustment reflecting the
conditioning influence of all the aims that I have mentioned.

I can,

though, through a brief review of some of our own recent developments,
try to illustrate same of the emerging characteristics of the adjustment
processes in today's world.

It should be apparent in these remaining

remarks that monetary factors, or liquidity, do indeed playa large
part in any well-functioning system.

I trust it will be eqmlly clear that

the adjustment process necessarily consists of many other elements as

\~ll

elements that could not be suitably influenced through monetary forces alone.
III
Bybalanc~
tha~

19.'0, it began to be widely recognized that the large Ame:::-ican
of payments deficits of 1950 and 1959 were not mere aberrations;

the United States was trying to spend mOre abroad than its foreign

earnings would allow J and that firm and sustained counter-action would be
needed, both from the public and the private sectors of the economy, to
restore equilibrium.

From that time onward, as ne", programs were developed

to promote domestic growth, every major step in public economic policy has
been importantly conditioned, if not actually prompted, by the effort to
reGain balance.

Each measure has also been shaped with full regard to the

fact that even modest improvements in one or another of the Uni"Ged States
accounts night, from the other side, loom calamitously large to any
particular countries on which their impact might converge.

- 11 -

The need f'or supplementing or replacing the classic a I prescription by
reachill8 out and utilizing effective means of international adjustment
attuned to the new facts and objectives of modern economies has been
recognized on both sides of the Atlantic.

For it was clear that the deficit

of the United States did not reflect overfull employment or strain on our
capacity at home, and relief for the balance of payments simply could not
be sought at the expense of dampening demand and adding to unemployment.
Indeed, ';i_thin ;J.n over-all deficit much too large, the Un! ted States continued
to have a surplus on goods and services second to that of no nation.

But

at the same time it was also carrying responsibilities for aid and defense
that fit into no classical theory of the adjustment process.
As recognition of these facts developed, it also became apparent that
successful adjustment policies could be achieved only in a context of
consultation and cooperation with other leading industrial countries.

this end, the United States seized the opportunity afforded by an incoming
Administration early in 1961 to propose a new initiative within the Orgunization;:'or European Economic Cooperation (which was then about to transpose
itself into the Organization for Economic Cooperation and ~velopment).
One of the results ,ms the creation of a i.Jorking Party on the Balance oT
Payments which has now for nearly three years proved its unique value as
a clearinghouse for mutual apprai sal, not only of the forces affectinr;
balance of payments ;:'lows amoDG most 01 the world's leading industrial
countries, but also of the broad outlines of policy and action that appear
most appropriate, takine into accotmt the jnterests of all concerned.

- 12 -

AGainst this background, complemented by consultations within the
International MOnetary Fund and at the Bank for International Settlements,
and further supplemented by a variety of bilateral relationships with
various countries, the United States has evolved a ccmplex of measures
aimed at wrlting simultaneously toward all of the longer range aims for
both domestic and international economic policy, while restoring external
balance.

In efforts as complex and detailed and interrelated as these

have necessarily been, there was no room for broadside simple answers;
nor has reliance been placed on any siOGle formula.

But through these

complexities, some promising approaches for meeting the new adjustment
problems that are SUI"e to arise in the future -- after equilibrium has
been restored to our own accounts -- can be discerned.
The pattern overlaying all of our effort has been that of liberalism,
of dependence on markets, prices, and incentives rather than upon authoritarian direction.

In relating specific actions to the need, there have,

inescapably, had to be some compromises.

Nonetheless, the broad outline

has been that of a flexibly changing mix among fiscal and monetarJ policies,
accompanied by specific measures to promote export credits and exports, to
limi t government spending of dollars overseas, to make aid available in
kind, and to neutralize the attractions of investment abroad as against the
United States.

And beyond these measures, ways of financing any remaining

over-all deficit have been developed that would, while retaining the
necessary pressures for adjustment, buttress rather than weaken the dollar
as a reserve currency.

Preservation of the strength of the dollar has been

- 13 vital during a transition toward balance that would necessarily be of
considerable duration if massive changes were to be accomplished without
disrupting the general expansion of world trade and payments.
The United States adjustment effort has, throughout, placed a
particularly heavy emphasis on fiscal measures that would both

the

sp~

performance of the internal economy and encourage balance abroad.

The

investment credit and depreciation reform provide a stimulus to business
investment that in some ways substituUB for an easier money policy that
would aggravate the capital outfloW'.

'!hese measures were also aimed

specifically at raising productivity and helping to maintain stable costs
and prices.

'!he proposed tax reduction aims further to broaden the incentive

stimulus of larger retained income.

Wage and price guidelines have been

in turn proposed as aids to maintaining the conditions of stability that
would promote internal expansion and strengthen this cOtmtry r S competi ti ve
position around the world.

To the same end, the continuing government

deficits that have reflected the inadequacies of our domestic growth have
been financed in a way that will minimize any potential for future
inflationary pressures.
While eventually powerful, these kinds of influences work themselves
out in the gradual adaptation of trade and payments patterns, necessarily
exerting their impact in a round-about manner.

Consequently, much reliance

from the start had also to be placed upon the early beginning of substantial
savings in the spending of dollars abroad by the government itself.

And,

of course, it has been important from the beginning, as well, to influence

- 14 favorably, in ways consistent with our philosophy and objectives, the
flow of capital funds into and out of the United States.
The variety and diversity of the specific measures taken in these
areas have mirrored the complexity of the causes for these continuing
United States deficits.

While the over-all nature of the problem was

simple enough -- that of a nation whose private citizens and government
were trying to transfer more resources abroad than the actual current
account surplus pennitted -- the complexities became apparent whenever a
single course of resolute action was proposed.
It has been true, for example, that a very sizeable part of the
balance of payments problem could have been eliminated at any time by
drastic reductions in overseas spending for military programs.

But the

demands of national security and the commitments inherent in Western
leadership made that impossible.

The costs of some activities could be

pared; the performance of some could be rearranged; but needed military
strength could not be impaired.

There could be dollar saving on military

accounts and offsetting sales of our military goods to foreign countries,
together making a major contribution toward the balance.

But there was

no simple and conclusive answer to be found hereo
In the same way, proposals have repeatedly been made to reduce
drastically or eliminate foreign aid, although total elimination of
actual dollar outflows for the aid programs would not in recent years
have produced anywhere near enough saving to balance our external accounts.
It was clear, in any event, that too much of the longer-range future of
peaceful development around the world hinged upon this aid effort to

permit its elimination or emasculation.

There could be savings in the

spending of dollars abroad through sending mainly goods produced here,
but these represent only a partial contribution toward external balance in
the Uhited States accounts.
Similarly, it could be argued that capital outflows accounted for the
entire deficit, and that comprehensive measures to reduce these flows could
restore balance.

But the free flow of American capital, both in producing

plant and in portfolio form, represented the base for much of the stimulus
and

~~ansion

upon which hopes depended for the prosperous world which could

sustain peace and afford freedom.

Influence might be exerted toward reducing

these outflows while the balance of payments position of the United States
was so clearly overextended, but the measures taken must be a coherent part
of the continuing effort to ,rtden the areas of freedom for the movement of
capital in response to the competitive forces of the market place.

This

effort will necessarily take time, for it must encompass the development of
more effective capital marlrets in other industrialized countries so that the
growing savings potential and resources of those countries can contribute
more fully to the task of meeting the financins needs generated by their
growth.

o~m

And, it must also entail the pat:!cnt removal of impediments at home

or abroad to foreign investment in the United States, a matter now under
intensive study by a Presidential Task Force.
It might have been suggested that the answer could be found in a
sudden vast enlargement of American exports, such as might be thought
possible through a currency devaluation.

That course of action could not

- 16 be considered by the United states, not merely because our immense size
would assure retaliatory action that would wipe out any apparent campet1t1~
trading advantage, but more emphatically because the United States dollar .•
firmly tied to a fixed price for gold --

pl~s

a key role in the world

payments system, supplementing gold as a source and store of liquidity and
as a trading currency.

Tbe fixed dollar price of gold has been a center

of stability in the world monetary system for nearly thirty years, while the
Italian lire, for example, has fallen to 2 percent of its 1934 gold value;
the French franc to 3 percent; the German mark to 4 percent; the Belgian
franc to 9 percent; the Dutch guilder to 41 percent; the British pound to
57 percent; and the Swiss franc to 71 percent.

But given the impossibility of devaluation, others could argue, the
United States should directly subsidize its exports or impose drastic
restrictions on its imports.

Yet the United States understandably resisted

taJdng such action, even to the extent permitted to countries with prolonged
deficits under existing international agreements,because it would in spirit
seem to contradict the principles of the General Agreement on Tariffs and
Trade which the United States has done so much to help establish as a
Magna

Chsrta for trade freedom in the developing postwar world.

Moreover,

to anyone not persuaded by adherence to principle alone, there was the
further consideration that the United States would have to face the
lihood that

any

such action on its part would invite retaliatory

li~·

offsetti~

action that would undermine the real progress that has already been made in
encouraging greater freedom of trade among all nations.

- 17 -

'!bus, the Un1 ted States faced the inevitable logic of undertaldng a
comprehensive program of action aimed at incremental improvement in all
segments of the balance of payments, not at dramatic solutions through a
few bold strokes.

And as I have mentioned earlier, it was important to

design measures that would maintain the world's momentum toward freer
trade, payments, and capital movements, while also re-establi shing levels
of employment and a base of economic expansion consistent with our domestic
potentials.

IV
What have been the results, thus far?

Leaving aside the varieties of

special measures of a financial nature which have helped to reduce the burden
of excessive dollars on the international monetary system, the pattern of
developments can best be observed by lOOking at what might be called the
"gross deficit" or the "deficit on regular transactions."

Using verry rounded

numbers to indicate directions and relative magnitudes, without any pretense
of precision, this figure was very roughly about $4 billion a year during the

1958-60 period.

Inside this total there was an average annual surplus on

conmercial goods and services -- that is, after eliminating military expenditures and aid-financed shipments -- of about $2 billion.

Against this surplus

there was an outflow of "free dollars" averaging about $4 billion a year for
military programs and the cash outlays for economic aid, taken together.
And there were net private capital outflows exceeding $2~ billion more -taking into account both foreign and U. S. capital, long and short term.

- 18 Over the two and one-half succeeding years, to the second quarter of

1963, the program of gradual but persistent effort had borne promising
resul ts.

The combination of export promotion and price stability had

resulted in exports more than keeping pace with the increase in imports
generated by rising levels of business activity.

Services earnings advanced

sharply, largely reflecting the greater earnings on American investment
overseas.

The over-all improvement in the commercial balance was about

$1 billion.
Economizing efforts by the Defense establishment had completely offset
the impact of rapidly rising prices in most of the countries where AmencM
forces were stationed.

In addition, substantial reductions in some dollar

outlays had been achieved and first Germany and then Italy began, as part
of a general program of enlarging military sales, to return to the United
States in supplemental military purchases the full amount of any dollars
actually disbursed in those countries.

The over-all reduction in net

military outlays abroad thus approached

$1 billion.

There had not yet

been sizeable absolute reductions in the flow of dollars at the end of
the growing aid pipeline, but for some time the practice of tying aid bad
been reducing commitments for futUre dollar spending.

Since aid materials

were to supplement and not displace commercial transactions, it was quite
appropriate for a country undergoing sustained balance of payments defic1 ts
to make its aid available in kind.
Over-all, the commercial balance improvement and the decline of Governmental disbursements had, by mid-1963, reduced by about half the gross annual

- 19 deficit of approximately $4 billion for 1958-60.

But instead of shOwing

a resulting figure under $2 billion, the gross deficit for the second
quarter of 1963 exceeded $5 billion, at an annual rate.

All of the

improvements shown through the detennined efforts on these fronts had been
washed away in an outpouring of Americ:m ca.pital, both short-term and long.
Purchases of foreign bonds and shares reaGhed an annual rate of $2 billion;
the outflow of short-term funds $2-J./q. bj Ilion.

The impact of the balance

of payments program thus far had not reached these capital flows in any
satisfactory manner.

Over the entire period a gradual edging up in short-

term money rates had indeed deterred potentially larger outflows of money
market funds, but more action obviously was needed.

To this end, President Kennedy, on July 18, requested Congress to
enact, effective the next day, an interest equalization tax to be temporarily
applicable to all forms of portfoljn
obligations.

i~ver,tmrnt

by Americans in foreign

He also announced thet the TJnited States had made arrangements

to buttress its position Over the

['iff:i.~ult

payments vas being brought back under
for borrOwing at the International

period ahead, as its balance of

~0ntrrl,

Mcmetar~r

through a standby arrangement

Fund.

The Federal Reserve mean-

while had announced an increase in discount rates and the market promptly
reflected this change.
While the immediate results of

th~sf"' T'1r11.::;11'1":3

of course, also embody a certain amount of C'!1pitaJ

'Wf"'re elramatic, they did,
j

nflov stjmulated by the

President's renewed indication of this country's determination to bring its
external accounts into balance.

While this and other special factors will

- 20 -

not provide continuing assistance to the balance of payments comparable

to that enjoyed during the third quarter, it is nonetheless impressive
evidence of the potency of this action that portfolio outflows in the t~d
quarter dropped back almost to the annual rates of the

1958-60 period,

reflecting mainly commitments that had already been made before July 18, and
recorded short-term capital flows reversed themselves to show an inflow,
in good part in reflection of a better alignment of short-term rates internationally.

The gross deficit for this quarter fell back to a rate well

below $2 billion a year.
Clearly, a measure such as the Interest Equalization tax, however necess
to achieve prompt results, can be properly viewed only as a transitional
measure until the other policies already under way succeed in

encouraGi~

more balanced flows of capital, and until the pressing strains on our
balance of payments position are otherwise relieved.
Hessage to Congress on July

To that end, in his

18, President Kennedy indicated that the rate

Governmental outflows of dollars would be reduced a further billion dollars
by the end of 1964.
look for the

~ited

Hith that further improvement now on its way, the outstates balance of payments is somewhat more

reassuri~,

provided every part of the program is carried through with perseverance.
There is no scope for relaxation, only for intensified efC-ort.

But the impli

cations of this experience for my theme today are not centered on the fw-ther
rationale of the /\IIlerican program, nor on forecasting its future results,
but rather on the implications of this experience for an understanding of
the interrelations between balance of payments adjustment and liquidity.

- 21 -

v
To what extent has our adjustment process been a fUnction of the
liquidity mechanism -- either that of the international monetary system
or the domestic monetary arrangements inside the United States?
Clearly, one great advantage which the United States had was the
accustomed use of dollars by many other countries in their own monetary
reserves.

This meant there was, up to very substantial amounts, ready

financing of deficits incurred as the transition toward balance was taking
place.

But how little different would the pressures for adjustment have

been, how little different could the measures undertaken have been, if we
could imagine a world in which the dollar were not serving as a reserve
currency for others.
For while the United States was obtaining financing for its deficits
through additions of some $4-1/2 billion to foreign monetary reserves over
the past six years, it was also paying out more than $7 billion of its
monetary gold.

Moreover, the bulk of the gold outflow occurred in the

1958-60 period before the United States had developed a comprehensive
and detennined balance of payments program.

Clearly this early and highly

visible impact on the United States gold stocks was a dominant influence
in ultimately awakening American recognition of the fundamental nature of
these balance of payments deficits and the fundamental need for correction.
It 'WOuld seem doubtf'ul indeed that any system of liquidity arrangements,
no matter how restrictive, would have been any more effective in alerting
everyone to the need for balance of payments discipline.

Nor would it

- 22 -

seem possible that balance of payments deficits of a size that imposed
such drains could, under any system. of liquidity arrangements, no matter
how loose, have averted the need for corrective action.
To be sure, the United States position as a reserve currency gave
impetus to its efforts to negotiate other kinds of financing arrangements
to minimize the strains being created by the deficits.

But on the other

hand, the very characteristics of the United States that make the dollar
a reserve currency -- notably the ability of foreigners readily to obtain
financing here -- have helped to create the deficit.
The United States did in considerable part replace the bank reserves
that would otherwise have been consumed through the gold outflow.

have done otherwise would have been to follow the almost incredible
course of actually contracting the supply of money and credit in an
economy which was increasing its gross national product by nearly $150 billion,
or by about one-third, over these same six years -- and an economy that is
still underemployed after that advance.
OVer the last several years, the United. States has maintained. a
remarkable, indeed enviable, record of comparative stability in costs and
prices.

Surely domestic monetary policy, to the extent that it may influence

prices, had not conspicuously erred on the side of expansion.

Nor need it

necessarily be the case that other countries, experiencing balance of payments surpluses, must allow excessive internal monetary expansion, or accept
internal price inflation.
plied in combination

~th

For fiscal and monetary measures, flexibly apother influences of government, could potentially

- 23 exert a restraining influence, where reserves were rising rapidly, comparable
to the offsetting action that has appropriately been taken by the United
States.

Or alternatively, if the additional reserves themselves were not

neutralized, they might be used for additional purchases from abroad, perhaps
stimulated by further action along the road of tariff reduction.

These are

the kinds of measures that in today's world can enable the surplus countries
to discharge their own share of the responsibility for facilitating international adjustments.
Hhatever

be found appropriate for the machinery of international

liquidity in the future

Ilhether more, or less, might be made available

to a deficit country -- there is little in the record of the United States
position over these past six years to suggest that the need or nature of the
adjustment processes ,yould have been materially altered by a different
liquidity system.

Indeed, an increase by one-half in the commercial surplus

on goods and services over a two and one-half year period would seem to be
good progress for a country whose trade and payments bulk so large in the
transactions 0; other countries, particularly during a period of steadily rising
business activity and higher imports.

Moreover, a reduction in dollar spending

on Government account by about one-fourth over tIm and one-half years, >lith
a scheduled reduction to one-half in
impreSSive

a~ainst

the

bac}~round

fo~

years, miGht be considered

of heavy dependence upon these flows by

so many countries over the preceding fifteen years or more.

- 24 And some slowing down of additional foreign investment has clearly
became as necessary for the United States as it vould be for any overextended enterprise in any economic system.

But the causes of the

unusual outflov, just as the correctives, are rooted in the contrasting
condi tions of the money and capital markets here and abroad.

While most

European capital markets remain severely restricted or institutionally
inhibited, calls on the American markets by countries in Europe and else'Where may be expected to be felt whenever demand is expanding rapidly in
those other countries.

That will be true so long as American markets

remain freely open to all, with the allocation of capital and credit
dependent upon price and credit risk.

And we are determined to maintain

that freedom and to persuade or induce others to duplicate it, in the
interest of the flourishing expansion of Western capitalism over the
years and decades ahead.
To the extent that the dollar's function as a reserve currency has
played a causative role in our balance of payments problems, it has
probably not been because it has disguised the problem, but because it
has made capital flovs more sensitive to changeS in our position -- real
or imagined.

For it has been recurrent episodes of misplaced concern over

the dollar's continued ability to fulfill the needs of the world for a
stable reserve currency that have generated much of the "flight movement"
of dollars that has built up the deficit on short-term capital account
from time to time.

And it has been the sensitivity of short-term American

- 25 capital -- free to move Where it will as befits a reserve center -- to
differentials in interest rates that has made necessary the intricate
money market operations which have, over the past three years, produced a
rise of about 1 percent in short-term market rates of interest, despite an
unprecedented massive accumulation of liquid savings which has held the
general level of all other interest rates relatively stable over

thi~

same

period.

So in conclusion I come back to my opening remarks.

There is a

sienificant element of truth in the assertion that too many dollars -- if
not too much liquidity -- have been created for some countries to absorb
without difficulty during the transitional adjustment of the United states
deficits and European surpluses.

The discipline of gold has served an

important purpose in helping to set things right.

There is also weight in

the expression of concern that the United states might, if it generated
internal liquidity without regard for its balance of payments, both worsen
its external position and jeopardize the orderly evolution of internal
expansion.

And there is little room for doubt that the entire adjustment

process could disrupt rather than strengthen the longer range performance of
the international economy if there were not adequate liquidity to finance
the deficits of transition while the necessary disciplines were exerting
their effect.
But it does seem to me mistaken to assert that international monetary
reform is needed in order to

elimir~te

the dollar as a reserve currency; or

that changes in internal liquidity alone could correct balance of payments
deficits on the scale experienced by a leading industrial country, such as

- 2c ~h:, (hi V:-r

S"c9.tes; or that much l.:trger and zoore nutorrntic a~il3.bili ties

o ~ liqilllli"cy could have significnntly modified the elements that have been

;ound essential for the American balance of payments proGram in the conditions
(\ ~ "he se T'::l::;t
~o

0::.

the

;'_u1

~~C\{

yea:::" s.

The search for an alchemy will ce:,t.ninly al Hays

But that should not deter us
~c::i',lst:nent

er:;>loJTI~nt,

process

cuno~

~~rom

tryinc; to think throU["'fl an arulySis

industri3.1 n3.tions th3.t

3.:'0

neciicatec1 to

steady c;rmrth, 3.nd price stabili tJ - - :1.n :..l.djustmcnt r-rocess

th.l ~ .:'i t::; the conditions of 3. convertible i,'Orld :tT'T'ro:..l.chin,i "r<::cdo!:'.
~,-:

C:1rit3.l movenents.

000

o_~

tr3.de

{'ut(

;je~mber )0,

~WSE A..

'rue",

M. aa,SPAPERS,
.De.....r P, 1963.

----

196)

uFP~jO.'\U.;}

ltKSULTS Oji' 'l'a.EASUdI'S Oi.f- .2.0\ ... dlL!.,

Tn. l'nanry- Departaent annoUlloed lut evftoing that the teDden tor 11,000,• .or thereabouts, of J6J-day Treasury bills to be dated January 3, 1964, and to -""
Daa.ber 31, 196J" vhiob vaN ottered on DeceMber 23, were opened at toM ,~ ~
Banke on De_bel- JO.
tollo~8 ~

'fhe detail. of this 18eue are ••

fotal applied tor - 12,11),284,000
Total accepted

1,000,309,000 (1nCl;ldos ~27 ,67"7,000 entered on a
noncompetitive basis and accepted 11

tu1: at the
dange of accepted competitiVe bids, (El<ce':ltinr"

Equivalent

High
Low

AY8rage

t17'

:'lj

price shown below)

tender of $100,000)

O!lQ

di3COtW t , apl'l"OX.

II
!~

3.69Jd per . . .

3."Tl.hi
3.7071,

• •
• •~

of the a.'1Iount bid lor at the l:w ·:r':l.ce "as accepted,

Pederal iUtaerve

Total
Applied

D1atr1ct

Hoai.on
.... York

PhUadelph1a
Cl.eyel.aDd.

fo~

20 ,6t 5 "uoo

'fotal
Accepted
~

66,,000

l,,;.·~,vn,(XA;

689,047,000

20,411,000

111 ,006, JJ('.

411,000
145,406,000
1,487,000

!U.obmoDd

1,4;37 , JIJD

Atlanta

j,212,O~J

Cbieago

14!h613,~kiO

76,,)8,000

7.505,000

4,58,,000
j,BIO,OOO

st. Louie
M1DnNpolls
la... City
Dallas
San

12,d70,UtX;

4 ,;~3b ,UX)
31, 75~),(:'JO

--.-!2, 750 /~

Francisco
TOO'AL

::-ate
j.1i

avera\~e

5,412,000

3,3)8,000
22,750,000
40,860,000
$1.,000,)09,000

.A1 • coupon issue of the sa.>ne length and 7:'-:n' 'L h-e :.lame (If;Jount inveeted, the " ' . '
the •• bUb would provide e yield or 3.66r:. ~Hv;re8t rates 0:1 billa are q-'" II

teNS of bank diacount vitn the return related to t <it' face amount of the bWt ,.,.
at lUt urity rather than the amount inveated::nd tnei r len,~t:;. in actual n"" " ..
related to a )6o-day:rear. tn contrut, yipld.s on certLficates, not •• , and .....
COIIIputed in t.e1'Ju, of interest on the amolUlt invested, and relate the n.-r
reuinin", in an interest payment period to the aotual number of da,.. in till ~
vi th a8ltiannual CCl.'Ilpoundin.:: if more than one c?upon period is involved.

of""

TREASURY DEPARTMENT

December 30,

, RELEASE A. M. NEWSPAPERS,
aday, December 31, 1963.

RESULTS OF TREASURY'S ONE-YEAR BILL OFFERING

The Treasury Department announced last evening that the tenders for $1,000,000,000,
thereabouts, of 363-day Treasury bills to be dated January 3, 1964, and to mature
ember 31, 1964, which were offered on December 23, were opened at the Federal Reserve
ks on December 30.
The details of this issue are as follows:
Total applied for - $2,113,284,000
Total accepted
- 1,000,309,000 (includes $27,677,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Range of accepted competitive bids: (Excepting one tender of $100,000)
Hi.gh

Low
Average

- 96.275 Equivalent rate of discount approx. 3.694% per annum
- 96.255
"
"""
" 3 . 714.t 1\
"
- 96.262
"
1\""
" 3 . 707%"
1\
Y

(97% of the amount bid for at the low price was accepted)
Federal Reserve
District

Total
Applied for
$
20,665,000

Boston
New York

Philadelphia
Cleveland
Richmond
Atlanta
Chicago

St. Louis
Minneapolis
Kansas City
Dallas
San

Francisco
TOTAL

Total
Accepted

1,596 ,097,000
20,411,000
171,006 ,000
1,487,000
9,212,000
144,61),000
7,585,000
12,870,000
4,838,000
31,750,000
92,750,000

665,000
689,047,000
411,000
145,406,000
1,487,000
5,412,000
76,538,000
4,585,000
9,810,000
3,338,000
22,750,000
40,860,000

$2,113,284,000

$1,000,309,000

Pn a coupon issue of the same length and for the same amount invested, the return on
these bills would provide a yield of 3.88%. Interest rates on bills are quoted in
terms of bank discount with the return related to the face amount of the bills payable
/it 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
r7maining in an interest payment period to the actual number of days in the period,
nth semiannual compounding .if more than one coupon period is involved.

- 3 -

and exchange tenders viII receive equal treatment.

Cash adjustments vill 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 We
or other disposition of the bills, does not have any exemption, as such, and 10s1
from the sale or other disposition of Treasury bills does not ha.ve a.ny 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 herea.f'ter 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

Accordingly, the owner

of Treasury bills (other than life insurance companies) issued hereunder need

elude 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,

p~.

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 -

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

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 a.pplied 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
final.

Subject to these reservations, noncompetitive tenders for $200,000 or

less for the additional bills dated
ing until maturity date on

l~OO or less for the

April
182

October 10, 1963

ih:J964

ntt
days remain-

ULJ
) and noncompetitive
tenders for

-day bills without stated price from anyone

bidder will be accepted in full a.t the average price (in three decimals) of a.ecepted 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

January. 1964

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

January 9, 1964

bit

•

cash

TREASURY DEPARTMENT
Washington

December 31, 1963

FOR IMMEDIATE RELEASE

TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public not ice , invites tenders for tvo seriee
of Treasury bills to the aggregate amount of $ 2,100,000,000 , or thereabouts, tor

5(fJO

Janua~ I

cash and in exchange for Treasury bills maturing

· m' ,

of $ 2 101 648 000
91

1964

, in the amount

as follows:

-day bills (to maturity date) to be issued
in the amount of $1,300,000,000

ffi

April

~1964

amount of $800.2MO

1964

,or thereabouts, represent-

ing an additional amount of bills dated
and to mature

Janua~

October 10, 1963

, originally issued in the
(an additional $100,092,000 was issued Octoa
, the additional and original bills l.9f

to be freely interchangeable.
182

ffif

-day bills, for $ 800'0titf00
Janualiii 1964

, or thereabouts, to be dated

,and to mature

July 9~64

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 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 Standard time,

Monday, JaniiIt6, 19M_

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 tender8t~
price offered must be expressed on the basis of 100, with not more than three

TR~/\SURY

DEPARTMENT
WASHINGTON. D.C.

December 31, 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,lOO,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing January 9,1964,
in the amount of
$2,101,648,000, as follows:
91-day bills (to maturity date) to be issued January 9,1964,
in the amount of $1,300,000,000, or thereabouts, representing an
additional amount of bills dated October 10, 1963, and to mature
April 9, 1964, originally issued in the amount of $800,296,000 (an
additional $100,092,000 was issued October 28, 1963), the additional
and original bills to be freely interchangeable.
l82-day bills, for $800,000,000, or thereabouts, to be dated
January 9,1964, and to mature July 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
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, January 6, 1964.
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 ca~e of competitive
Genders 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
leserve Banks or Branches on application therefor.
~p

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
lubmlt tenders except for their own account. Tenders will be received
rithout deposit from incorporated banks and trust companies and from
~sponsible and recognized dealers in investment securities.
Tenders
'rom others must 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.

·1084
=

- 2 }: ,;.: . '- ;'.:el:: ?i"tor the: closing hour, t0nders Hill be opened at
i""';',?l~ 1 H~~::;erv_> Banks and Branches, following Hhich public
3nnOU:ll~CT;:1t, 'dlll be rl3<ie by the Treasury Depart,"" I1l
of the amount
a~1d llJ"cc: l'~~nc;e of accepted bids,
Those submitting tenders will be

th,:;

advisej of the accc:ptance or rejection thereof. The Secretary of
the 'T'~'c(~:)u~ry expr'essly reserves the right to accept or reject any or
() 11 te:yL: rs) in who le or' in part" and hi s ac t ion in any such respect
shelll b'2 fJ:~al, Subject to these reservations, noncompetitive
tenders for' $ ~:Jl) ,i,lUIJ or less for the additional bills dated
l \ t ,":lc " Iii J l!ll), ('·ll-days remaining until maturit;y date on
, \ ) ) - i j J , l~J()!f)
and non?ompetitive tenders for $100,000
o~ leS3 for the IH~-day bills Hithout stated price from anyone
bidder Hill 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 v>!lth the bids must be
made or completed at the Federal Reserve Banks on Janu:lry 9, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing .J al1Udry l), 196!-1 .
Cash and
exchange tenders VillI 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.
1

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 insuranc e companies) issued hereunder
need inc lude 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 :)epartment 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

~~::c~ Stutca Suvir~G BO~G Iss~cd ~id Re~emed Through Dec~er 31, l%~
u::-.oc.;..-.~s in :-:.i1lions - roc.;..itcd nr.d will r-.ot necessarily o.dd to totlllc)

(:I0::':;'.:...r

'-0'·_....
\,A,,4.ioU

J"'\'Ul

Issued

'-,.,."..,t

.l~"VY..U,

Redeer..ed

'-"""''nt
~~hV"""''''

5,003
29,30e

4,990
29,1l9

-'.L

r-=====~====~=======

··...................
..
...................
19 4 J ·.....................
1944 ·........ , ...........
1945 ••••••••••••••••••••
1946 ••••••••••••••••••••
19/.7 ·....................
·....................
191.9 ·....................
1950 ·....................
1951 ·....................
1952 ·....................
1953 ·....................
1954 ·....................
1955 ·....................
1956

1,831
3,084
13 ,015
15,156
11,869
5,334
5,026
5,179
5,095
4,hG3
3,848
4,025
4,532
4,638
h,793

19/,1
191,2

•
•

19/,8

4,600

• ••••••••••••••••••••

3,906
3,885
3,397
3,747
3,292

Unclassified ••••••••••••••••••
499
Total Series E ••••••• q • • • • • • • ~9,247

Series H (1952 - Jan. 1957) ••••• j

3,670
5,830

H (Feb. 1957 - 1963) ••••• '

Total Series E and H ••••••••••
Series F and G (1952)

•••••

Series J and K (1952 - 1957) ••••
To·"al Series F 1 G, J and K ••••
Series

3/.

.......
.....

Total matured
Total UI1JI1atured
GT',md Total

.........

wi::

C[.:"i1 ir'.t~rest ;"0;:

h78
89,507

284
1,225
1, 961
2,h51
2,126
1,175
1,288
1,434
1,497
1,389
1,216
1,330
1,695
1,883
1,981
1,891
1,855
1,958
1;870
2,017
2,230
2,332
2,62h
21
39,740

-U

16.17
11. 91
22.0)
25.6J
27.69
29.3~
31.26
31. &J
33.~
36. 99

40.&J
41.33

41.II
42.91

46.8;
47.88
51.92
51.22
62.24
79.71

4.2]

2,251
5,115

JO.TS
61.)
81 ••

7,367

17.9-

I
I

1,1.119
715

~,
I

2,134

1}3,747

91,641

47,107

33.~

213

151

29.!B'

3,706

2,047

1,659

44~~ ,

3,919

lOP
/V

1,721

. 43~

3h,109
93,839
127,948

201
48,827
49,029

.9.

34,311
312,666
176,977

be held a."1d

additional :periods

after original maturity dates.

2,695
2,887
2,756
2,812
2,710
2,hf)d
2,221
2,036
1,868
1,667
1,h15
668

9,SOO

~~c:~GCG o.cc~ed diGco~~t.

C~~~~t redemption val~e.
/~~ o::n::,c::1 of oymer '00:_'::; -;;.u.y

4,179

··....................
.....................
·......................

3,05t~
2,~32

h,323

1957 • ••••••••••••••••••••
1958 • ••••••••••••••••••••
1959
1960
1961 • ••••••••••••••••••••
1962
1963 • ••••••••••••••••••••

Total Serios H ••••••••••••••••

1,~47

6,<359
11,048
12,705
9,743
4,159
3,738
3,7.45,
3,598

t'\·t
...
\IU. G"""-tt

V or A':lt.I.

~,''-' '1'88
,'·' ' ,3

~.t :,:,~ '.::]

&;:-~cs J\-1935 - D-1941 •••••••••• !
Scric u ? & G-1941 - 1951 .... •••••

: "

Outotor.dinr;

United States Savings Bonns Issued and Redeerr~d Thro\~:h December 31, 196~
(Dollar amo~~ts in millions - ro~~ded and will ~ot necessarily ndd to totnlc)
Amount
Amount
Amoun t
, ;! Ou tG tnnd inti
Issued 1I Redeerr.ed 1/ OutBtandinr. zj or A.1lt. ISliucd
i\;.;D

~ A-19J5 - D-1941 ••••••••••
iea F & 0-1941 - 1951

.........

~
1ea Z:

1941 • ••••••••••••••••••••
1942
1943 .1 • • • • • • • • • • • • • • • • • • •
1944 •••••••••••••••••••••
1945 • ••••••••••••••••••••
1946 • ••••••••••••••••••••
1947 • ••••••••••••••••••••
1948 • ••••••••••••••••••••
1949
1950 • ••••••••••••••••••••
1951 • ••••••••••••••••••••
1952 • ••••••••••••••••••••
1953 • ••••••••••••••••••••
1954 • ••••••••••••••••••••
1955 • ••••••••••••••••••••
1956 • ••••••••••••••••••••
1957 • ••••••••••••••••••••
1958 • ••••••••••••••••••••
1959 • ••••••••••••••••••••
1960
1961 • ••••••••••••••••••••
1962 • ••••••••••••••••••••
1963 • ••••••••••••••••••••
.c1assified ••••••••••••••••••
E '
\tu & r i
es
..........

·.....................

·....................

5,003
29,308

4,990
29,119

13
188

1,831
8,084
13,,015
15,156
11,869
5,334
5,026
5,179
5,095
4,lili3
3,848
4,025
4,582
4,638
4,793

1,547
6,859
11,048

284
1,225
1,967
2,h51
2,126
1,175
1,288
1,434
1,497
1,389
1,216
1,330
1,695
1,883
1,981
1,891
1,855
1,958
1;870
2,017
2,230
2,33 2

12~705

4,600

·.....................

4,323
4,179
3,906
3,885
3,897
3,747
3,292
499
)
9,2!17
3,670

9,743
4,159
3,738
3,7.45'
3,598
3,054
2,032
2,695
2,887
2,756
2,812
2,710
2,468
') ~21
,-,036
1,868
1,667
1,h15
668

I
.
I

.26
.64

15.51
15.15
15.11
16.17
17.91
22.03
25.63
27.69
29.38
31.26
31.60
33.04
36.99
40 0 60
41.33
41.11
42.91
46.85'
h7.88
51.92
57.??
62.~4

2,62)~

79.71

h78
89,507

39~740

4.21
30 0 75

5,B30

1,)+19
715

2,251
5,115

61.34
87.74

9,500

2,134

7,3 67

77.55

13ff,747

91,641

47,107

33.95

213

151

29.11

.es J and K (1952 - 1957) ••••

3,706

2,047

1,659

44.77

\'~al

&ries F, G, J and K ••••

3,919

2,193

1,721

43.91

~~l matUT€d •••••••
Series < Total unmaturBd •••••
G,illld Total

34j311
142,666
176,977

3h,109
93,839
127,948

201
48,827
49,029

.59
34.22

'ii'"

H (1952 - Jan. 1957) • ••••
H (Feb. 1957 - 1963) •••••

Series H ••••••••••••••••
,)tal &riea E and H
••••••••••
ea F and G (1952)

•••••

.........

,eludeQ accrued diccount.
trrent redemption value •
.t o?tiorl of owner bO:~G rno.y be held nnd
'ill earn interest ior additional periods

fter original maturity dates.

BUREAU 01 THE PUBLIC DEBT

27.70

- 3 -

Lhe

~a l~

f;UC'I\,

or other llispor.Jtion of Treasury bills does not have any special trea.tment

lm<ler the Internal TIevenuc Code of 1954.

The bills are subject to estate, inhq

ltcnce, Gift or other excise taxes, whether Federal or State, but are exempt from aU
tD...~at.lon

no'., or hereafter imposed on the principal or interest thereof by W'lY State,

any of the possessions of the United States, or by any local taxing authority. For

purposes of tnxation the amount of d:tscount at which Treasury bills are orieinally sol(
. b:r the United Dtates is considered to be interest.

Under Sections 454 (b) and 1221 (5

of the Internal Revcnue Code of 1954 the amount of discount at which bills issued here
tlllder o.re sold ts not considered to accrue until such bills are sold, redeemed or otlr
wise disponed of, and such bills are excluded from consideration as capital assets.
AccordiIlGly, the ouner of Treasury bills (other than life insurance companies) issue4
I

hCI'CW1der need include in his income tax return only the difference between the price
paid for such bills, 'lmether on original issue or on subsequent pruchase, and the
actunl~

I!IIQI

received either upon sale or redemption at maturity during the taxable year

for lffiich the return is nmde, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescr14
the tenns of the Treasury bills and govern the conditions of their issue.
the circular may be obtained from ony Federal Reserve Bank or Branch.

C~ies ~

- 2 -

nnJdnr; institutions Generally may subm:Lt tcnders for account of customers pro,

the names of the customers are set forth in such tenders.

Others than bDnldnG

utions will not be permitted to submit tenders except for their own e.ccount.
s will be received \uthout dcpoGit from incorporated banks and trust cOnIp811ies
om responsible and recognized dealers in investment securities.

Tenders from

must be accompanJcd by payment of 2 percent of the face amount of Treasury bills

d for, unless the tenders are accompanied by an express guaranty of payment by an
,orated bank or trust company.
ttb'I ""'"'''''''' Km''P"k ""i KIt., gam 'N,. Xiii. I Xlli:tiJtl"I"Js ••• gil. x Ii. KM.lrXp" V te" "MaM RiO::

p,,,. ilk.,. ••••'Nti tc

*>1u, 1

I •• ', ..

","M,,,

~II'I • • } . Xiii

Xlii]'"

em".,. kKk',I'."

'.ii.""iklrb*ikN* 8i.' • • iN t chI 8J'm:~' Iii ill dla,,', iii 'iiliN"

KNi~

~ i(X5i iCe07./1Y'>OOC

Wlwdiately after the closing hour, tenders will be opened at the Federal Reserve
and Branches, following which public announcement will be made by the Treasury

ment of the rullOunt and price range of accepted bids.
e advised of the acceptance or rejection thereof.

Those subrni tting tenders

The Secretary of the Treasury

sly reserves the right to accept or reject any or all tenders, in Whole or in part,

s action in any such respect shall be final.
itive tenders for

$ 400,000

Subject to these reservations, non-

or less without stated price from any one

6f!i6dC

'\-rill be accepted in full at the average price (in three decimals) of accepted

itive pids.
~ed

Payment of accepted tenders at the prtces offered must be made or

at the Fcdel~al Reserve Bank in cash or other inunediately available funds on

D Ii M"I' «Ial*:n' nnl1CM1I1I ""1QO' X" 'I:., *m",I' tcx:ftI]r;U" ',lI *

*'''.l''A~llj Gp1'Xk i _'111 r:k1x

Ie income derived from Treasury bills, vmether interest or gain from the sale

:r disposition of the bills, does not have any exemption, as such, and loss from

TRE/\.SDf:Y DEPARl'I.!ENT
Hnshincton
Fon II 'it IBDIATE RELEASE
iiiii

k i tlJ

ii'ttt,g'ii CLXXX2 i . i , i i i '

The TrcasulJr Department, by this public notice, invites tenders for $2,500 '\"1'1
m~
or thcl'c('.bout::;, of 159
-dny Treasury bills, to be issued on 0. discount bo.sis under

comret.ltive and noncompctitive biddinG as hereinafter provided.
'rill bc dcsiGnated Ta.."{ AntiCipation Series, they i·rill be dnted
and they ,.;ill r.1C.ture

June 22, 1964

taxes due on

January 15, 19M

--..-.;--~***~~=::.:=---

They ,.;ill be accepted at face value in

------~Ecl~--------

payment of income "","1M Iii liN

The bills of thiG se

June 15, 1964

, and to the extent

are not presented for this purpose the face amount of these bills will be payable wit:
out interest at maturity.
1964

, incomG

Taxpayers desirine to appls" these bills in payment of _,

JDCitxP"1CHC

taxes have the privileGe of surrendering them to any

Fcdcl'O.l Reserve Banl\: or Brench or to the Office of the TrensUl'er of the United states
Ha shinc-c on , not more thr:m fifteen days before

June 15, 1964 , and receivIng receipt

therefor shoviIlG the face snount of the bills so surrendered.
Gubr:dtted in lieu of the bills on or bC;lore

June 15, 1964

til

These receipts may be
, to the District Direc

Oi~ Intel'nal TIevenue 1'01' the District in Imich such taxes are payable.

The bills will

iGGued in bearer form only, ena in denominations of $1,000, Q5,000, $10,000, $50,000,
4>100,000, ~;500, 000 ond $1,000,000 (maturity value).

Tenders irill be received at Fedel'G.l Reserve Banlw ond Branches up to the cloG~
hour, one-thirty p.m., Eastern Standard time, Thursday, January 9, 1964,
no'c be received at the Treasury Department, Hashington.

Tenders 1

E[1,ch tender must be for 'en e

[rultiplc of :~1,000, and in the case of competitive tenders the price offered must be
c;::prcs3cd on the bo,sis of 100, lnth not more than three decimals, e. g., 99.925.
Fractions TIley nOG be used.

I'L is urged tha.t tenders be mooe on the printed forms SIi

:lonro.rded in the special envelopes lfiich lr.i.ll be supplied by Federal Reserve
Dranches on application therefor.

:sankS"

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

January 2, 1964

TREASURY OFFERS $2.5 BILLION IN JUNE TAX BILLS
The Treasury Department, by this public notice, invites
tenders for $2,500,000,000 , or thereabouts, of l59-day Treasury
bills, to be issued on a discount basis under competitive and
noncompetitive bidding as hereinafter provided.
The bills of this
series will be designated Tax Anticipation Series, they will be
dated January 15, 1964, and they will mature June 22, 1964.
They
will be accepted at face value in payment of income taxes due on
June 15, 19b4, and to the extent they are not presented for this
purpose the face amount of these bills will be payable without
interest at maturity.
Taxpayers desiring to apply these bills in
payment of June 15, 1964, income taxes have the privilege of
surrendering them to any Federal Reserve Bank or Branch or to the
Office of the Treasurer of the United States, Washington, not more
than fifteen days before June 15, 1964, and receiving receipts
therefor showing the face amount of the bills so surrendered.
These
rece ipts may be submi t ted in 1 ieu of the bi lls on or be fore
June 15, 1964, to the District Director of Internal Revenue for the
District in which such taxes are payable.
The bills will be
issued in hearer form only, and in denominations of Sl ,000, $5,000,
$10,000, S50,000, $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 Standard time,
Thursday, January 9, 1964.
Tenders will not be received at the
Treasury Department, Washington.
Each tender must be for an even
mUltiple of 51,000, 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 tha t tenders be made on' the prin ted forms and forwarded
in the speci~l 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 hanking institutions will not be permitted to
submit tenders C'xccpt for their own account.
Tenders ~'7ill be received
without deposit from incorporated banks and trust companies and from
responsible ~ncl recognized dealers in investment securities.
Tenders
from others must he accompqnied by payment of 2 percent of the face
amount of Treasury bills ~pplied for, unless the tenders are
acCompanied hy an express guaranty of p~yment hv an incorporated bank
or trus t compnnv.
f)-1085

(MORE)

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will he 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 M
a 11 tenders, in who Ie or in part, and his ac tion in any such respect
shall be final.
Subject to these reservations, noncompetitive tender!
for $400,000 or less without stated price from anyone bidder will be
accepted in fu 11 a t the average price (in three dec ima ls) of accepted
competitive bids.
Payment of accepted tenders at the prices offered
must be made or completed at the Federal Reserve Bank in cash or othel
immediately available funds on January 15, 1964.
The income derived from Treasury bills, whether interest or ga~
from the sa le or other d is pas i tion of the bi lIs, does not have any
exemption. as such, and loss from the sale or other disposition of
Treasu::-y hills does not have any special treatment, 3S such, under
the Internal Revenue Code of 1954. The bills are subject to estate,
inherit8nce, 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 possessioos
of the Un i ted S ta tes, or by any local taxing au thori ty. 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 Sec tions 454 (b) and 1221 (5) of the In ternal 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 cO.llpanies) 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 ~~
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

TREASURY DEPARTMENT
January 2, 1964
FOR IMMEDIATE RELEASE

The Treasury's offering of June tax anticipation bills
at this time will replace the $2.5 billion of one-year bills
maturing on January 15.

The Treasury is deferring a decision

on additional financing in January to permit a further appraisal
of its cash position and the flow of tax receipts, which have
recently been somewhat more favorable than had been expected.
Further details on January borrowing plans, which may include
an offering outside the bill area, will be made known as soon
as possible.

000

D-1086

TREASURY DEPARTMENT

FOR

I~r-lEDlt\TE

RELEASE

The Treasury's offering of June tax anticipation bills
at this time will replace the $2.5 billion of one-year bills
maturing on January 15.

The Treasury is deferring a decision

000

D-10t56

'; 1
... ?

'rhe l'roMUl')' :::.e,.d·~nt fllmO\lnCed last. evening that the tencJen "Jr ~wo III'St
bill~, ;)oo:Jerieu to,:) 1n an addit1unal 168\18 ot t..he billa at:,
''Ct.ooer II
and the :)t.l'ier sori~!I to 00 da~d Janutlr,; 9. 19~, which wn ott.ncI/;1 ,~:CHbIt:
"pened cat. the Federhl ,10se",0 )i{lJ1.'c, on Januar,r 6.r.nde1"8 were 1.aY1t. ,j (or :l,lt
oz' thenwOonts, of ?l-da.:,r bill:,> :mo lor ,~'tO{),C)'.)).(.IOOJ or t.hA!treabout,a, ': It 2..."
The detilla of tr..~; t ..'i') nqri~l:; ;U";" '-:3 tollows:

rftasury

)l-du.v 'trelWury bills
___ .~Il,~~~J.AP~A l·.~, _ .
A~flrox. F..quiv.
'rio~

5;1.110 ~/

,tate
.
3. )?1.;4

Annual

).<iJl'
3.5)1; ,.;

';;'j .1:J',

ot 7 2';C), fJJ
0'- 91-,u\,}' ':;i11G !d.d f;)r at. !.. (.ll! l~ price liU acct' , ,~d
the n.mount ;>!' 1: 2-dii-,':' bUlB b1d for at the low price
ace>: ,·,d

J,'

~.~r1ot

JdohaJQd

.'.t.lant.a
Chlca~o

st. Louis
)I~nnaD..~Xlli!i
Kanaas city
Dal.l<H5

<;an

lilt"

;~T¥ed For

Ph1ladel}jhia
Cleft land

"~.ne1sco

't:n'ALS

~~(')'",nt

BOGt4l
Nev York

'0/

•

xeept.in' 1 c,9rl<..1er

92:: o'.hJ
41

~ 37,$00,000
1,408,21),000
2B,9n,OOO
lO,m,OO}
14,499,OO'J
)6,731,000

t.coe~

: A~

'01'

21;08,000 • !);2B6,OCX'

827,)07,000:

1),967,000

)0,925,000
14,499,000:

34,214,000,

1,lll,549,00(;
6,8J14.,O()()
9,94O,OOC:
2,729,00(,'
8,$92,00(;

~C.

.,:' J,
'~,('6,

1,=
9,

8'1
2,

71,9 .

128,)SS,00t
l),lSS,OOCi
6,508,OOC;

12,

31,791,CXIO'

18,07S,OOC

18,

lO,wu,OQ(l.

124,853,000

22,817,000
,78.1,OSl.ooq

5,~

$2,050,756,000

$1,)00,113,000

W ;iil,)86,2S6,ooo

:DO~_

2)2,82),000
47,S65,;YJO
23,980,000

157,26),000
41,>49,000 t
20,820,000 s

)2,191,000

31,897,000

I
$

46.282.009..!W1

Includes ;27F';,94J,~)Q n~Utlvet.ender.. aeeepted at tbe Aftftl'J :-,rict ol~
Includes 6-6,029,000 nooQ~tit1"" t-enden aceepW4 at. t.lie . .,a. 'rice "
In a C"'J~<)l'i iosue of too same let"~ and for t.be __ IIIIOUftt. ~Jd, the
tl.@.$/;1' hills \f!">Uld ~;1"CNi,1e yields of ).6)". fof' t.he 91-dq bUla,.nd ).~,
1t 2-dsj' bill,;;. 111t.a~3 to rates on billa .... QuotAd in toe.... or Nnk a1
:.he return rela:t;.~d t.,:.. u~ face ~t. of the bUl. ~abl. at Mt.rit.y
tJ'.e ..mount invilSt.&d 'cn:,~ t.heir length in actual maber of dfq. nllftr,d \0'
y'>a.r. ~n c~m reft, ~'1elds ')fI cer1:,it1catee, not.ea, Dd honda an C-:.1ll;iUtM
~r in'kal"\:::~ t '~n :.r~ :1l'!t:)lJJlt invested, and rela'- t.be m.ber or dqa t"I:!'l'UiJdI(
L"lt3J""';n. ;'ll~·':"t ~-nr:'od t.') the act.ual nuJllber of daTa 1n t.tI" p!-noi, ~~1tb
cOlll':oun1iu~; tf ;c,:)I"', l.. h"J1:l:ns CI7..lfHlft i~r1od 111 1nTolftd.

~EASURY

DEPARTMENT

AS! A. K. NEWSPAPERS,

January 6, 1964

Januarr 7, 1964.

RESULTS OF TREASURY'S WEEKLY BILL OFFERING

Trea81U7 Departllent announced last evening that the tenders tor two series at
bills, ODS series to be an additional. issue at the bills dated October 10, 1963,
lther series to be dated January 9, 1964, which were oftered on December 31, were
the Federal Reserve Banks on Janu.ary 6. Tenders were invited for $1,300,000,000,
wouts, at 91-~ bills and for $800,000,000, or thereabouts, at 182-day bills.
Us ot the two series are as toll0W8:

··
··

91-~ Treasury bills
182-day Treasury bills
maturing AprU 9, 1964
maturing July 9, 1964
Approx. Equiv. :
Approx. EquiY.
•
Price
Price
Annual, Rate
Annual Rate
99.110 a/
98.154
3.521%
3.651%
99.105 3.541%
98.140
3.679%
age
99.107
3.534%
98.145
3.669% Y
ing 1 tender of $250,000
the aaount of 91-dq bUls bid for at t he low price was accepted
the aaount of 182-day bills bid for at the low price was accepted

ACCEPTED
:tIE BIDS:

IDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:

Applied For
Accepted
A.pplied For
Accepted
•
37,508,000 $ 27,508,000
$
3,286,000 $ 3,286,000
'k
827,307,000
1,408,213,000
1,131,549,000
626,359,000
lphia
1,834,000
28,971,000
13,967,000
6,834,000
nd
30,925,000
9,940,000
30,925,000
9,940,000
d
2,729,000
2,729,000
14,499,000
14,499,000
8,233,000
8,592,000
34,214,000
36,731,000
77,93 0 ,000
128,355,000
157,263,000
232,823,000
is
12,358,000
13,358,000
41, 549,000
47,565,000
olis
6,008,000
20,820,000 :
6,508,000
23,980,000
City
18,075,000
18,075,000
31,791,000
32,791,000
5,851,000
10,441,000
22,817,000
31,897,000
'\Cisco
27,869,000
48,589,000
78,053,000
124,853,000
$2,050,756,000 $1,300,713,000 £/ $1,388,256,000 $800,472,000 ~
's $278,943,000 noncompetitive tenders accepted at the average price of 99.107
8 $66,029,000 noncompetitive tenders accepted at the average price of 98.145
upon issue of the same length and for the same amount invested, the return on
bills would provide yields of 3.63%, for the 91-day bills, and 3.80%, for the
lay bills. Interest rates on bills are quoted in terms of bank discount with
!turn related to the face amount of the bills payable at maturity rather than
wount invested and their length in actual number of days related to a 360-day
In contrast, yields on certificates, notes, and bonds are computed in tems
~rest on the amount invested, and relate the nwnber of days remaining in an
est p~ent period to the actual number of days in the period, with semiannual
JUnding i f more than one coupon period is involved.

IMMEDIATE RSLSASE

December 30, 1963

Office of the White House Press Secretary
(LBJ Ranch, Texas)

-------------------------------------THE WHITE HOUSE

President Johnson today announced his intention to appoint Sheldon S. CI
of Ma.ryland as Chief :::::ounsel of the Internal Revenue Service. He SUCCI
Crane C. Houser, who resigned on August 31, 1963. The Chief Counsel
also an Ass! stant General Counsel ·:>f the Treasury Department.
Mr. Cohen ~e~ a partner in the Washington law firm of Arnold,
Fortas and Porter and has specialized in tax matters during his entire
legal career. He is also a Certified Public Accountant. Mr. Cohen Waf
atto . . . ney in the Chief ::ounsel's Office of the Internal Revenue Service fr'
1952 to 1956. From 1956 to 1960~ he was associated with the law firm of
Stevenson, Paul, .Rifkind~ Wharton and Garrison, of Washington.
Sheldon S. Cohen, who js 36, wa., born in Washington, D. C. and receivE
A. B. degree with speci;,l honors in accounting from George Washington
University in 1950. In 1152 he received his law degree from the Univers
Law School graduating fLrst in his class.
Mr.::ohen was admitted to the bar by the United States District Court fo
the District of Co:umbia and the Unit ed States Court of Appeals for the
District of Columbia in 1952. In 1956 he was admitted to practice before
Supreme ~oul·t.of t~ Un~ted States apd the Tax~ourt of the Uni~d Stt\1
He is a me;:gg~~c gp t~~lSpescsi~~lgulf~cfoiiirAWl:eoen ot1:t~t1egln~m~Wo~rcl'ene
Tax ?roblems, and a participant in two sub-committees on Substantive T
Reform. Mr. ·:::;ohen is also a member of the Bar Association of the Disl
of Columbia and the Federal Bar Association and serves on the tax committees of both associations.
Mr. Cohen has been an Associate Professorial Lecturer at George Wash
University Law School since 1958, and from 1957 to 1958 was Lecturer at
the Heward University Law School in Washington. He also has been alec
at the tax institutes of New York University and American Universiy.
Active in community affairs, Mr. Cohen is Secretary, Director and Men
ship Chairman of the Jewish Community Cent,e.r of Greater Washington aJ
is Second Vice-President, Director and Chairman of the Legal Committe
of the Jewish Social Service Agency.
In 1951 Mr. Cohen married Faye Fram of Baltimore, Maryland. They h,
one son and two daughters. They reside at 5518 Trent Street, Chevy Gha
Maryland,

TREASURY DEPARTMENT

January 6, 1964
FOR IMMEDIATE RELEASE

SHELDON S. COHEN TAKES OATH AS
CHIEF COUNSEL OF INTERNAL REVENUE SERVICE

Sheldon S. Cohen, of Maryland, today received the oath of

oaice as Assistant General Counselor the Treasury Department

and Chief Counsel of the Internal Revenue Service from

Associate Supreme Court Justice William O. Douglas.

President Johnson had announced Mr. Cohen's appointment
on December 30.

Treasury Secretary Douglas Dillon, at the brief ceremooy

held at 2:30 p.m., called the appointment timely and

particularly appropriate because of Mr. Cohen's experience in

both the administration and pracrice of tax laws.

TREASURY DEPARTMENT

January 6, 1964

FOR TIMMEDIATE RELEASE
SHELDON S. COHEN TAKES OATH AS
CHIEF COUNSEL OF INTERNAL REVENUE SERVICE
Sheldon S. Cohen, of Maryland, today received the oath of
Jffice as Assistant General Counsel of the Treasury Department and
:hief Counsel of the Internal Revenue Service from Associate Supreme
:ourt Justice William O. Douglas.
President Johnson had announced Mr. Cohen's appointment on
)ecember 30.
Treasury Secretary Douglas Dillon, at the brief ceremony held
it 2:30 p.m., called the appointment timely and particularly
lppropria::e because of Mr. Cohen I s experience in both the
ldministration and practice of tax laws.
Mr. Cohen has been a partner in the Washington law firm of
rnold, Fortas and Porter and has specialized in tax matters during
is entire legal career. He is also a Certified Public Accountant.
r. Cohen was an attorney in the Chief Counsel's Office of the
nternal Revenue Service from 1952 to 1956. From 1956 to 1960, he
as associated with the law firm of Stevenson, Paul, Rifkind,
harton and Garrison,of Washington.
Sheldon S. Cohen, who is 36, was born in Washington, D.C., and
eceived his A.B. degree with special honors in accounting from
eorge Washington University in 1950. In 1952 he received his law
egree from the University's Law School graduating first in his
lass.
Mr. Cohen was admitted to the bar by the United States District
Jurt for the District of Columbia and the United States Court of
)peals for the District of Columbia in 1952. In 1956 he was
imitted to practic0 before the Supreme Court of the United States
1d the Tax Court of the United States. He is a member of the
rrerican Bar Association Section on Taxation, a member of the
)ecial Sub-Committee of the Committee on General Tax Problems, and
participant in two sub-committees on Substantive Tax Reform.
:. Cohen is also a member of the Bar Association of the District
: Columbia and the Federal Bar Association and serves on the tax
)mmittees of both assoc iations.
)-1088

- 2 -

Mr. Cohen has been an Associate Professorial Lecturer at
George Washington University Law School since 1958, and from 1957
to 1958 was Lecturer at the Howard University Law School in
Washington. He also has been a lecturer at the tax institutes
of New York University and American University.
Active in community affairs, Mr. Cohen is Secretary, Director
and Membership Chairman of the Jewish Community Center of Greater
Washington and is Second Vice President, Director and Chairman of
the Legal Committee of the Jewish Social Service Agency.
In 1951 Mr. Cohen married Faye Fram of Baltimore, Maryland.
They have one son and two daughters. They reside at 5518 Trent
Street, Chevy Chase, Maryland.

000

... 2 ..
These special non-Q18rketable securities, which
are handled as public rfebt operations, have been
issued in five foreii,n currencies to foreign monetary
authorities. As of nec~. .l'tber 31, 1963, the total
outstanding was ~qui..valel1t to ~760 million of which
$730 million had ~a.aturitia€ of from 15 - 24 'BOnth.
and ~3[1 million were short tern. During 1963 oaediumterm bonds equivalent in value to $478 million nave
been issued; of these, $275 million are denomi.nated
1n Cerman .narks. $123 millio:! in SWiS8 francs, $30
million in 3e13,ia.."l fTanc~ anr.4 $50 !.dllion, including
the issue 1n f..;ece-:uoer, tl'1 Austrian schIllings.

OIA:TP~elson:pjh:l2/12/61

December 12, 1963
'f

Mr. Fousek

',.

J ..........

tianager, Foreign Department
Federal Reserve Bmk of New York

T. Page Nelson
Room 2311, Main Treasury
Press Release on Austrian Schilling Bond.

~Uti,JECT:

We propose to make the following releas.

January 6 to
accorttpany publication of the End-of-Month Daily Statement for
f)ecember. Si,~(;e there 1..'3Y be other security issues in
DeCeiT!ber ';-lh1ch, :tf they mater! allze ~ 't<1ould also be described
in this same release there may be chrut&es in the following
draft. I ,..'Ould su,>..:,gcst, therafol"e, you clear 'l'f~ith Austria
00

only thE: first rarasraph. with the statement that there will
be a.n additional s/~ctiOl] reC8Pf.lint, transactions in 1963 and
,'efcrring-, to a:.ly otb"H.' specific issues li>1hich rn,ay be made in
lJecer.:ber.

. - - - -- - - - - - - -.
~

F{)r'~1nlSe
r,t.'

~!"3

January 6th
-

··~~.m.

The 'treasury Paity Itatement for Decemb·er 31,
1')63, slH:r-.Js chat d'J,rlni; December the 'treasury issued
~n adclit -Lonal It-~mth bond denominated in Austri.an
scllillin~s in th.€' a1l0Utlt of 650 million schlllings,
the (~quivalent of abvut :$25 million. The availability

of such securities for invest.:uent purp..oses is of
::1utua,l advarltaze to tha foreign monetary authority
rule the United States as an outlet for surplus funds
acquired by c()untri~s such as Austria \\,tj:)'ich are in
surr1us i.n tIl:?ir ir~terfi8tional accounts. 'This is
the second '::liJcL r,'}~dium-ter.m schilling boncl purchased
~y

,~ustria.

(continued)

TREASURY DEPARTMENT

January 6, 1964
FOR IMMEDIATE RELEASE
FACT SHEET ON AUSTRIAN SCHILLING BOND ISSUE
The Treasury Daily Statement for December 31, 1963,
shows that during December the Treasury issued an additional
18-month bond denominated in Austrian schillings in the
amount of 650 million schillings, the equivalent of about
$25 million. The availability of such securities for
investment purposes is of mutual advantage to the foreign
monetary authority and the United States as an outlet for
surplus funds acquired by countries such as Austria which
are in surplus in their international accounts. This is
the second such medium-term schilling bond purchased by
Austria.
These special non-marketable securities, which are
handled as public debt operations, have been issued in
five foreign currencies to foreign monetary authorities.
As of December 31, 1963, the total outstanding was
equivalent to $760 million of which $730 million had
maturities of from 15 - 24 months and $30 million were
short term. During 1963 medium-term bonds equivalent
in value to $478 million have been issued; of these,
$275 million are denominated in German marks, $123 million
in Swiss francs, $30 million in Belgian francs and $50
million, including the issue in December, in Austrian
schillings.

000

D-I089

- 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.
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
trom the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code ot 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 heree.t'ter 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

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 tor
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.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches.on application therefor.
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 $ 200,000 or

less for the additional bills dated

October 17, 1963

mJO

tbtj

(B6

days remain-

ing until maturity date on _A...;p~r_i_l--,1:;;:6:;;.':r:-19_6_4___ ) and noncompetitive tenders for

(1"dX
$ 100) 000 or less for the 182 -day bills without stated price from anyone
tm)
(ifi{
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

January 16, 1964
, in cash or other immediately available funds or
~
in a like face amount of Treasury bills maturing
January 16, 1964
cash
--------~~~~-----

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,

January 8, 1964
TREASURY I S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $-h,100ftf0' 000 , or thereabouts, tor
cash and in exchange for Treasury bills maturing

January 16, 1964, in the amount

ffi

of $ 2,100~532,000 , as follows:

9l-day bills (to maturity date) to be issued

-ffir=""r-

January 16, 1964

iii

in the amount of $ 1. 300:M0' 000 , or thereabouts, representing an additional amount of bills dated
and to mature
amount of $

April 16, 1964

ffi

800,355,000

October 17, 1963

, originally issued in the

, the additional and original bills

to be freely interchangeable.
182 -day bills, for $

8QO,0~00

pj(J
January 16, 1964

, or thereabouts, to be dated
~
, and to mature __J_uly.....;._1"':::ll6::,=l9_6_4_ __

tt4z

(CDl

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,

Monday, January 13, 1964_

tfif

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
FOR IMMEDIATE RELEASE

January 8, 1964

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,OOO,000,or thereabouts, for cash and in exchange for
Treasury bills maturing January 16, 1964, in the amount of
$2,100,532,000, as follows:
91 -day bills (to maturity date) to be issued January 16, 1964,
in the amount of $1,300,OOO,OUO, or thereabouts~ representing an
additional amount of bills dated October 17, 1903, and to
mature April 16, 1964, originally issued in the amount of
$800,355,000, the additional and original bills to be freely
interchangeable.
182 -day bills, for $ 800,000,000,
or thereabouts, to be dated
January 16, 1964, and to mature July 16, 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 Standard
time, Monday, January 13, 1964.
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
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-1090

- 2 I;.t';ledia':"el~r ~:"ter the closJng hour, ten-leI's '{Ill be opened at
the Federal Reserve B;mKs (lnd Branches, l')~:"t-~_ 1~ 't!tLtch public
3:1nOUnCe~e:1~ wi II he> f'18ie hv the Treasu~·,.: DC' ..'Cr"'::TL'twl
of the amount
,,:1.1 :;rice :'2:1ge :>f rtccented bids.
Those-;I-"':':llv~,,1.ng tenders will be
alv:sed )f t'1e acceptrtnce or rejection t\:ei'''~c)f, The Secretary of
the 1:"e23u~,' eXDresslv reserves the ri~,ht to accept or reject any or
;11 ~ :,;:ljcT~,
:,'1:1):: , ) r ' :,\ ;,art, anc<, I 1.:-, act :!.on in any such respect
shall. be ;~~I,jLo ~ub,'2<'l,:c) i"hese re::C:8:l'vat~oI1s, noncompetitive
tCi.1e:'s ,1:: J.'
" 'l" le;3S ::"JY' t,he ddditional bills dated
,I, ~L'l- 11.
1,
).
('i' <Lj,~.S :::'enaintng untll ma~urit¥ date on
1.,', i I I . I
;;',:1 ,,):-:c~;m~et :',', ive tenders for $ 100,000
0{, 1e:6 ~or '-he I ':'.:i"'.~,r bills Hithou.t stated price from anyone
bi~~er will b~ 2~-~~tej 1:1 ful~ 3t t~e average price (in three
dec L~21s) ,r ac'.'''rt"''r;, c:xr1?et~'lj·.f'''' tdds for the respective issues.
Sc>+:tler:1c:tt :'C';' ::l;-2on:-ed teri~'?:~:; in -3.ccoD::iance with the bids must be
::1ade ;)r C\)::1~'le'l.ej clt t',he F'?r1,,:c::=d :-\:;!Ser'Te Banks on January 16, 1964,
in C'23h or ·,)+:her >rl:Tledia h ,) C,r 8,'::-J.l12.ble funds or in a like face
,"!, 1"1 )c), ~l ':: of T :::'~ a 3 u ry b i 11 sr;n t I: r-1 'lg
J a Ii II (1 r y 16, 1964. Cas h and
c<'~:":'lge ten4 e ,'" Hi T1 r"'c"c' j'lre, equal treatment.
Cash adjustments
\'l ~ "_
')C :-:'1 a 8 p
'~',' ; ' : ' :'>: ',... ,-: C>~: betl'ieen the par value of maturing
J;";~,
3 r:C'-'C','-P':; '~:" ':'\·:~l:;.~f ';nd the issue price of the new bills .
j

,\'

)-:

;

c'e:{sury bill.s, whether interest or
:;'1:Cc'posicl:>n of the bills, does not have
'~c ., ',_
",.=i:>:~ 1,') S.., ::' rom the sale or other disposition
.)f'
Tre?.su~r ~)'-L' ~ i Jes [L't have any special treatment, as such,
'",:;Je:' tho-? J:'1~er~J ~ .·~.'~:-'U.s C,ode of 1954.
The bills are subject to
~s:-a:-2, inher~:-8.:;22, gift or other excise taxes, whether Federal or
State. but (1re "'XC>:l,": from 3.11 taxat:1,on now or hereafter imposed on
ttle ~':o~:;cio''- ~:"_i;""':~';S": +:h'?I',:cf by any State, or any of the
p'::;~e::-ft:):lc
", ,-; ' f - ~'L'~ :::~,a~t-:~", or by any local taxing authority.
;;'''1' ':'!1 r" )3'2 ~ ,)~'>--l /,' ~ -' A\ ~ t-lP amount of discount at which Treasury
biL:,3 'E'e 2 ':"igln::-. 1 ~y 301:i by the United States is considered to be
i;--;:'erest,
:.hie:- ,~e(~J~~J!':~, LI,)4 (b) and 1221 (5) of the Internal
ii'2ve:l'-l.e:,--;'~ ~);' l)~ \ he amount of discount at which bills issued
h':':"'J:;j·.:>:' ::'~'P ::- ~'l. i is no'" c')nsidered to accrue until such bills are
sc2.:1J :"~j'::ej,ej ::;~ ','::h9r'tlise disposed of, and such bills are excluded
:':"'):-:" COi,::::'..j-2:-'3'::'-:':~~ 1:~~api'::a1 assets.
Accordingly, the owner of
':':"~3.:'l:"'.)· b:.:.· ~ (~. ~'\-,,' '::h2:", :afe insurance companies) issued hereunder
:1eej ::-.-:; l."::~ i:-, ,- ~:-: ;',2 )"-:',-2 t:ax ::-oeturn only the difference between
- ' n ~.,..,~~C> ~::i-: >:0 :~L':l bi~2.sJ whether on original issue or on
sub~;.?~u;:>:".'" :·~:":'1:.', 3'-:-: '.h,c amr)unt actually received either upon
:J~C' -:0 :,.,~,?~.:,,,-> -,- ~I- :--"''-'L"1''-y-lurlng the taxable year for which the
:::':? :: 1) ~ ~ ~ ..-,,9. --: n . ~;:" --, ~ 1 ~
:t ~ r c~ ~ . \.,. . , 0 r
1 0 .......~ .
. n

:'~'),

.... ,'
Ie'

'':.'};11L

,','Co"

,',-

'-'

--'-').

Investment Returns in the January 1964 Advance Refunding
Approximate investment yield
from 1/22/64 to maturity ~/

Securities eligible
for exchange

Approximate reinvestment rate
for extension period 2/
-

:
:a>nd
8/15/70 3/:

3-3/4~

Note

8/15/64 •••• 1

4.16~

4.25~

5'-'

Note

8/15/64 •••• !

4.15

3-3/4'-' Note

11/15/64 •••• :

4-7/8", Note

11/15/64 ••••

4.21~

4.29~

4.27'-'

4.25

II
II

4.21

4.29

4.27

4.16

4.25

4.24

4.30

4.28

4.15

4.25

4.24

4.31

4.28

2-5/8~ !bnd

2/15/65· ••• 1

4.15

4.25

4.32

4.29

4-5/8'" Note

5/15/65 ••••

4.16

4.25

4.23

4.31

4.28

Office of the Secretary of the Treasury
Office of Debt Analysis

January 8, 1964

1/ Yields to nontaxable holders (or before tax) on issues offered in exchange based on prices of eligible
issues (adjusted for payments on account of issue price). Prices are the mean of bid and ask quotations
at noon on January 7, 1964.
2/ Ra te for nontaxable holders (or before tax).
Y Reopening of an existing security.

')
<'

Payments to and by the Subscriber in the January 1964 Advance Refunding
(In dollars per $100 face value)

Securities to be
exchanged

Amounts to be paid to or by subscribers
: Accrued interest :
·
P r~ce a dj us t ment
t 1/
: to January 22, 1964 :Net amount to be pe
paymen _
to be paid
••
••
To
••
B y ·•
.•
T
B ·•
T
Bv
:
-a.
:
-y.
: subscriber:
subscriber:
-a.
:
;;L
: subscr~ber : subscr~ber
2/
:
3/
: subscnber : subscril
For the 4% Bond 8/15/70

3-3/4%
5%
3-3/4%
4-7/8%
2-5/8%
4-5/8%

Note 8/15/64 •••
Note 8/15/64 •••
Note 11/15/64 •••
Note 11/15/64 •••
Bond 2/15/65 •••
Note 5/15/65 •••

.950000
1.650000
.950000
1.850000
.250000
1.800000

1.630435
2.173913
.700549
.910714
1.141304
.864011

2.357915
2.357915
2.357915
2.357915
2.357915
2.357915

.222520
1.465998
.70731
.402799
1.4666:

.306096

For the 4-1/4% Bond 5/15/75-85

3-3/4%
5%
3-3/4%
4-7/8%
2-5/8%
4-5/8%

Note 8/15/64 •••
Note 8/15/64 •••
Note 11/15/64 •••
Note 11/15/64 •••
Bond 2/15/65 •••
Note 5/15/65···

.050000
.750000
.050000
.950000
1.150000
.900000

1.630435
2.173913
.700549
.910714
1.141304
.864011

.793956
.793956
.793956
.793956
.793956
.793956

Office of the Secretary of the Treasury
Office of Debt Analysis

l/
~

Payment on account of purchase price of offered securities.
On securities to be exchanged.
On securities offered.

.886479
2.129957
.043~

1.066758
.8026
.970055
January 8, 1

I
I
I
I

I • !r l
• -, I
~

_'~

I ,-,

•

)

I ..:.. ..... ,

·0

I
I
I
I

Treasury Department
Washington
January 8, 1964

SUPPLEMENTARY NOTE ON CASH ADJUSTMENT PAYMENTS
To assure reasonably comparable terms to all holders of the
eligible securities, the Treasury will collect small cash adjustment payments from the holders of low coupon securities and
will correspondingly make cash adjustment payments to holders
of issues bearing higher coupons. These payments are apart
from the usual interest adjustments on the eligible and offered
issues as indicated in the table below.
Holders of the 2-5/8% bonds maturing in February of next
year, for example, will be asked to pay the Treasury 25 cents for
each $100 of par value submitted in response to the Treasury's
offering, if the holder wishes to obtain the 4% bonds of 1970.
If he wishes to obtain the 4-1/4% bonds of 1975-85, his payment
to the Treasury will be $1.15 per $100 of par value exchanged.
Without these supplementary payments, the increases in coupon
income until the maturity of the 2-5/8's in February 1965 would
produce rates of return on the offered securities well in excess
of those available to the holders of the other eligible issues.
At the other extreme, holders of the 5% notes maturing next
August would receive a payment of $1.65 per $100 from the Treasury,
if they choose to exchange their 5% notes for the 4% bonds of
1970. If they should choose the 4-1/4% bonds of 1975-85, they
would receive a somewhat smaller payment of 75 cents per $100
from the Treasury. In effect, these payments by the Treasury
to the subscriber compensate him for the reduction of his coupon
income that he will be accepting for the short period remaining
to maturity in August. These payments also provide some additional inducement to the holder for recommitting his funds to
Government securities for an additional period ahead, either to
1970 or to 1975-85. In effect, a holder of the 5% notes may
be considered to continue receiving the equivalent of his 5%
coupon until maturity in August, and then to begin receiving for
the extended period for which he has committed his funds a rate
of interest well above available alternatives.

TREASURY DEPARTMENT

IMMEDIATE RELEASE

ADVANCE REFUNDING OFFER

January

The Treasury today announced an advance refunding offer. Recent improvement in the
ih position makes unnecessary any additional cash borrowing at this time. Instead, the
~asury will take advantage of the customarily favorable market conditions in January to
~her improve its debt structure by offering holders of six issues of outstanding
~asury securities an opportunity to extend their holdings at attractive yields.
Issues
~uring from August, 1964, to May, 1965, may be exchanged for additional amounts of 4
rcent bonds maturing in 1970 or 4-1/4 percent bonds due in 1975-85.
The public holds $15.3 billion of the securities eligible for exchange; about $9.4
llion are also held by official accounts. The outstanding total is $24.7 billion.
)ks will be open for the exchange all of next week, January 13-17. Because of differ~es in coupon and maturity among the various eligible issues, cash adjustments will be
~ to provide all subscribers with comparably attractive opportunities.
The securities
gible for exchange and those being newly offered are as follows:
Securities eligible for exchange
and their maturity dates
3-3/4~ notes
S/15/64
5i
notes
S/15/64
3-3/4~ notes
11/15/64
4-7/S~ notes
11/15/64
2-S/a~ bonds
2/15/65
4-s/ai notes
5/15/65

Securities offered in
and their maturity
4~ bonds
(additional issue)
4-1/4~ bonds
(additional issue)

exchange
dates
8/15/70
5/15/75-85

The total public holding of the eligible issues is appreciably less than that of
errecent advance refUndings. To assure ready accommodation of this offering within
current market, and preclude the possibility of excessive subscriptions of a spective character, the Treasury is limiting the total of subscriptions it will accept
the 4 percent bonds to $4 billion. Allotments for the 4-1/4 percent bonds will be
Ii ted to $750 million. Present prospects suggest that the Treasury will not, apart
mregular monthly issues of one-year bills, need to borrow for cash until April at
earliest. No substantial cash needs are expected until the approach of the next
cal year. However, the cash position will remain sufficiently flexible to allow
pe for issuance of additional amounts of Treasury bills, as needed, if further influe should be required upon short-term interest rates for balance of payments reasons.
The Treasury's objectives, now as in the past, are to conduct deot operations so as
help promote economic growth and stability while at the same time meeting the Governtis cash needs, maintaining a balanced debt structure, helping to protect the balance
payments, and avoiding excessive liquidity which could create potential inflationary
ssures. The current offering, in furthering those objectives, is a natural accompanit to PreSident Johnson's efforts, indicated today in his State of the Union Message,
redUce sharply the size of the Government's deficit financing reqUirements, and to
rten the period over which further deficits will be incurred.

L09l

Treasury Department
Washington

January 8, 1964

SUPPLEMENTARY NOTE ON CASH ADJUSTMENT PAYMENTS
To assure reasonably comparable terms to all holders of the
eligible securities, the Treasury will collect small cash adjustment payments from the holders of low coupon securi ties and
will correspondingly make cash adjustment payments to holders
of issues bearing higher coupons. These payments are apart
from the usual interest adjustments on the eligible and offered
issues as indicated in the table below.
Holders of the 2-5/8% bonds maturing in February of next
year, for example, will be asked to pay the Treasury 25 cents for
each $100 of par value submitted in response to the Treasury's
offering, if the holder wishes to obtain the 4% bonds of 1970.
If he wishes to obtain the 4-1/4% bonds of 1975-85, his payment
to the Treasury will be $1.15 per $100 of par value exchanged.
Without these supplementary payments, the increases in coupon
income until the maturity of the 2-5/8's in February 1965 would
produce rates of return on the offered securities well in excess
of those available to the holders of the other eligible issues.
At the other extreme, holders of the 5% notes maturing next
August would receive a payment of $1.65 per $100 from the Treasury,
if they choose to exchange their 5% notes for the 4% bonds of
1970. If they should choose the 4-1/4% bonds of 1975-85, they
would receive a somewhat smaller payment of 75 cents per $100
from the Treasury. In effect, these payments by the Treasury
to the subscriber compensate him for the reduction of his coupon
income that he will be accepting for the short period remaining
to maturity in August. These payments also provide some additional inducement to the holder for recommitting his funds to
Government securities for an additional period ahead, either to
1970 or to 1975-85. In effect, a holder of the 5% notes may
be considered to continue receiving the equivalent of his 5%
COupon until maturity in August, and then to begin receiving for
the extended period for which he has committed his funds a rate
of interest well above available alternatives.

Payments to and by the Subscriber in the January 1964 Advance Refunding
(In dollars per $100 face value)
Amounts to be paid t~_ or t:l.~su:.;..;b;.:;6...:;,c.;.;ri::.:b:.:e~r.::..s_ _ _ _ _ _ _ __
: Accrued interest :
Price adjustment
: to January 22, 1964 :Net amount to be paid
payment !;/
to be paid
:
To
:
B
:
To
:
l?1
: To
:
B
:
--.
:
-l
:subscriber:subscriber:
-:
~
:subscr~ber:subscriber
2/
:
)1 :subscriber:subscriber

Jecurities to be
exchanged

For the 4% Bond 8/15/70

'4%

Note 8/15/64
Note 8/15/64 ...
'4~ Note n/15/6 1.....
'~ Note 11/15/64 •••

'Bi
'~

••

.950000
1.650000
.950000
1.850000

2/15/65 ...
Note 5/15/65 ••• 1.800000

Bond

.250000

1.630435
2.173913
.700549
.910714
1.141304
.864011

2.357915
2.357915
2.357915
2.357915
2.357915
2.357915

.222520
1.465998
.707366
.402799
1.466611
.306096

For the 4-1/4% Bond 5/15/75-85
4% Note 8/15/64 ....
Note 8/15/64 •••
4~ Note 11/15/64 •••
~ Note 11/15/64 •••

1fo
jfo

2/15/65 •••
Note 5/15/65···

.050000
.750000
.050000
.950000
1.150000

Bond.

.900000

1.630435
2.173913
.7005 49
.910714
1.141304
.864011

.793956
.793956
.793956
.793956
.793956
.793956

:e of the 3ecretary of the Treasury
Office of Debt Analyfis
~~nt

on account of purchase price of offered securities.
In securities to be exchanged.
In securities offered.

.886479
2.129957
.043407
1.066758
.802652
.970055
January 8, 1964

InYestaent Returns in the J&nu&ry

Seeurities eligible
for exchanae

1964 Advance Reflln d1 ng
Approximate reinvestment rate
for extension period ~/

Approxt.ate investment yield
from 1/22/64 to maturity !/

.a:>nd

Bond

3-3/4~ A:lte

8/15/64< ... 1

4.16J

4.25~

8/15/64 •... ,

4.15

4.25

Note

4.21~

4.291.

4<27~

4.21

4·29

4·27

4.24

4030

4.28

a,te

1l/15/64 ....

4.16

4.25

4-7/8J

Ji:>te

ll/15/614 ....

4.15

4.25

4.24

4.3l

4.28

4.25

4.32

4.29

4.23

4.31

4.28

2-5/8J .a:>nd

2/15/65· .. · I

4.15

4.25

4-5/a,

5/15/65 .••• ,

4.16

4.25

Rote

O1'riee of the Secretary of the Treasury
O1'fice of Debt Analysis

}/4':

1/
-

4-1/4~ .a:>nd 5/15/75-~5

8/15/70 3/: to first cal1:to maturity

8/15/70 3/: to first call or maturity

"It

January

8, 1964

Yields to nontaxable holders (or before ULX: CD 1sE~;e6 offeree in excbange based on prices of eligible
issues (adjusted for payments on accoUllt.::f i~5U€: rr-lcc). Prices are the mean of bid and ask quotations
at noon on January 7, 1964.
Ha te for nontaxable holders (or before t.ax;.
~ or an existing securi ty.

APP;:':TlIX TO F:\l"~,GrJ\PH 1;0. 9
;:CI2CCCr:rno:! CP GAD OTI LOSS Feil FCD::::nAL rr:co:,:E TAX PUT'-J'OSES

Where a bona is offered by the T:r:,:l:Jury vi th a Po.yT.~cnt (other than the accrued 1nter
adjus t[']·~nt) to tLe i n'restor.
Exnmples:

Assu:Je that:

(0. ) The fair market value of the security offered by the Trcasury on the date
the subscription 1s s~bmitted is $99.50 (per $100 face value).
(b)

The payment to the subscriber (discount) on account of $100 issue price
is ~i. 30.

(c)

The amortised cost basis of the security surrendered on the books of the
subscriber is $100.50 (per $100 face value). (It is assumed that the
security surrendered ~~s boueht at a price above $100.50 and that the
oriGinal pr~uium was reduceu prorato. over the period ~om purchase date
to m::1turity.)

The Sli.'U of the fair m8.rJ{ct value of the securi ty offered by the Treasury and
the payment to the subscriber is $99.50 + $.80 or $100.30. This is less than
the cost basis of the issue surrendered, therefore, no gain is recognized.
The new issue ,nIl be entered on the books of the subscriber at a cost basis
of $99.70, the cost basis of the issue surrendered less $.80. The gain or los
between this cost basis and the proceeis of a subsequent sale or redemption
of the new issue will be a capital gain or loss to all investors, except those
to whom the securi ti es are stock in trade. Under present lay, if the combinea
time that the security surrendere~ and the new security received in exchange
were held exceeds 6 months, the capital gain or loss is long-term, otherwise
it is short-term.
2.

The assumptions are the same as in exan~le 1 except that the payment
(discount) to the subscriber is now $1.20 (per $100 face value) instead of
$.80 in example 1.
The smn of the fair ~rket value of the new securjty received in exchange by
the subscriber plus the $1.20 p~yment (discount) 1s $100.70. This exceeds
the cost basis of the security surre.:lc.ered by $.20. This excess is a
recoVli zed gain reportable for the y.?ar in which the exchange takes place.
The gain is a capital gain except to those to whom the securities are stock
in trade. Under present law, if the time the security surrendered yas held
exceeds 6 months, the capital gain is long-term, otherwise it is short-term.
The subscriber Will carry the new issue received in exchange at a cost basis
equal to the basis of the issue surrendo::red ($100.50), less the payment
($1. 20 ), plus the amount of the recogni zed gain ($.20) or ($100.50 _
$1.20 + $.20) $ 99.50.
'

The assumptions are the same as in eXaITq>le 1, except that the cost basis on
the books of the subscriber, of ~he security surrendered is $99.00 (per $100
face value) instead of $100.50 in example 1.
The sum of the fair market value of the ne" issue :received in exchange by the
subscriber P7,US the $.80 po.~ent (discount) is $100.30 (as in example 1). Th
exceeds the y99.00 cost baSls by more than $.80. However, the amount of the
gain r:portable for "Cree year of the exchange is $.80 J since the amount of gai
recognIzed cannot exce~d the amount of the payment. The nature of the
recognized gain end its treatment is the same as in example 2.

m this case) th~ subscriber will enter the new security received in exchange
on his books at ~99.00) the same cost baSis A.~ t-.he security surrendered.

13. Payments on issue price and investment rates on the
holders of the eligible secUl'i ties:
5(';J/

-L/4'i
0-0
l;J
'7

Notes
8/15/64
FOR TIill ITEH

Payments on account of $100
issue price:
To subscriber-------------By subscriber--------------

4it

Notes
8/15/64

.-,

11:::\1

ocr'1d.,c., ()fferec~ lCl
,
•

eXCllanGe to
1

/ ".(

I± iJ

/l-7lJ~j

4-5/8'6

Notes

ITotes

Notes

11!1.5/64

5/15/65

,,:! -.:J /

11!lS/(~

DOND~-) OF AUGU$T 15, 1970

~0.95

~)l. 65

$0.95

$1.80
$0.25

Approximate investment yield
from exchange date (1/22/64)
to maturity of bonds offered
in exchange based on price
of securities eligible for
exchange ~/------------------

4.16'/;

4 .15~~

Approximate minimltm reinvestment rate for the
extension period ~/----------

4.21

l:" 24

4.25

4.23

FOR THE NEIJ 4-1/4% BONDS OF alcY 15, 1975-85

Payments on account of $100
issue price:
To subscriber-------------By subscriber--------------

:~O. 75

$0.05

ct1.15

Approximate investment yield
from exchange date (1/22/64)
to first call date or to
maturity of bonds offered in
exchange based on price of
securities eligible for
exchange ~/----------------ApprOximate minimum reinvestment rate for the extension
period: ?J
To first call date-------To maturity---------------

$0.90

$0.95

4.25)';

4.29

4.27

·,b.27

4.30
[1.28

4.32
4.29

Y Yield

to nonta..'(able holder or before tax. DD.sed on mean of bid and asked prices
(adjusted for payments on acc01.mt of issue price) at noon on January 7, 1964.

?J Rate

for nontaxable holder or before

t;:1.X.

For explanation see para::;r8,ph 12 above.

4.31
4.28

income tax purposes solely on account of the exchange of the secur'ti . h ever
section 1031(b) of the Code requires :ecognition of any gain reali~ede~~ t~: exchange
to the extent that money (other than lnterest) is received by the securit holder in
connection with the exchange as indicated in (b).
Y
(b) . Where the securities to be issued are offered b the Treas
with a
nt to
the investor-- If the fair market value 1 of the securities to be issued plus the
amount paid to the investor (discount) exceeds the cost basis to the investor of the
securities to be exchanged, such gain (but not to exceed the amount of the payment)
must be recognized and accounted for as gain for the taxable year of exchange. He
will carry the new securities on his books at the same amount as he is now carrying
the old securities except that he will reduce the cost baSis by the amount of the payment and increase it by the amount of the gain recognized. If the fair market value
of the new securities plus the amount of the payment does not exceed the cost basis
of the old securities, the basis in the new securities will be the cost basis in the 01
securities reduced by the amount of the payment.
(c) Where I!remium is paid by the subscriber-- If a premium is paid by the subscriber
no gain or loss 'Will be recognized; but his tax basis in the new securities 'Will be
his cost basis in the old securities increased by the amount of the premium.
(d) Gain to the extent not recognized under (b) (or loss), if any, upon the old
securities surrendered in exchange will be taken into account upon the disposition
or redemption of the new securities. (See appendix to paragraph 9 attached.)

17 The mean of the bid
10.

and asked quotations on date subscriptions are submitted.

Federal estate tax option on the 4-1/4% bonds of 1975-85:
The 4-1/4~ bonds of 1975-85 will be redeemable at par and accrued interest prior to
maturity for the purpose of using the proceeds in payment of Federal estate taxes
but on~ if they are owned by the decedent at the time of his death and, thereupon
constitute part of his estate.

11.

Book value of new securities to banking institutions:
The Comptroller of the Currency, the Board of Governors of the Federal Reserve System,
and the Federal Deposit Insurance Corporation have indicated to the Treasury that
banks under their supervision may place the new securities received in exchange on
their books at any amount not greater than the amount at which the eligible securities
surrendered by them are carried on their books plus the amount of premium, if any,
paid on the new securities, or reduced by the amount of discount, if any, received by
the subscriber and increased by the amount of gain, if any, which will be recognized
as indicated in paragraph 9.

Computation of reinvestment rate for the extension of maturity:
A holder of the outstanding eligible securities has the option of accepting the
Treasury's exchange offer or of holding them to maturity. Consequently, he can compare
the interest plus (or minus) any payment, other than the adjustment of accrued interest
he will receive resulting from exchanging now with the total of the interest on the
eligible issues and what he might obtain by reinvesting the proceeds of the eligible
securities at maturity.
The income before tax for making the extension now through exchange will be the
coupon rates plus (or minus) any payment on the new issues. If a holder of the
eligible securities does not make the exchange he would receive the coupon rates on
the eligible issues to their maturity and would have to reinvest at that time at a
rate equal to that indicated in paragraph 13 below for the remaining terms of the issues
~ow offered in order to equal the return (including any payment) he would receive by
Lccepting the exchange offer. For example, if the 3-3/4% notes of 11/15/64 are ex-hanged for the 4% bonds of 8/15/70, the investor receives 4% for the entire 6 years
~nd six and three-fourth months plus $0.95 (per $100 face value) immediate~. Ifu1h~ng
f not made a 3-3/4% rate will be received until NOVember 15, 1964, reg rl f
axc hange i
,
/ '
b
1964 a t that time at a rate--~0
~pinv9stment of the nroceeds of the 3-3 4 s of ~ovem er

PayDlent :
p~ent for the new securities allotted and the net amount to be collected from

subscribers, as shown in the table in the preceding paragraph, must be completed
by January 29~ 1964. Where the table shows a net amount payable to subscribers,
the payment w~ll be made by the Treasury, if bearer securities are surrendered
following their acceptance, and if registered securities are surrendered following
discharge of registration in accordance with the assignments on the securities.
The new securities will be delivered January 29, 1964.
5.

Limitation on amount of securities to be issued:
While it is not practicable to estimate the extent of investor acceptance, the
Treasury is placing an outside limit of $4 billion, or thereabouts, on the aggregate
amount of the 4 percent bonds of 1970, and $750 million, or thereabouts on the
aggregate amount of the 4--1/4 percent bonds of 1975-85 to be issued. J
In the event the limit on either issue is exceeded, subscriptions to the respective
issue will be subject to allotment.

Books open for subscriptions for the new securities:
The books will be open for the receipt of subscriptions from Monday, January 13,
through Friday, January 17, 1964.
Subscriptions placed in the mail by midnight,
January 17, addressed to any Federal Reserve Bank or Branch or the Office of the
Treasurer of the United States, Washington, D. C. 20220, Yill be considered as time~.
The use of registered mail is recommended for the security holders' protection in
submitting securities to be exchanged.
If securities eligible for exchange are pledged with a State or Federal Government
agency or authority and such securities cannot or will not be released by such
authority to the pledgor in time for use in making payment for the securities
offered in this exchange, the pledgor may, nevertheless, enter a subscription.
Such subscriptions should be accompanied by a letter signed by an authorized official
of the pledgor explaining the circumstances and, if the authority will not release
the securities, a request and authorization for the Federal Reserve Bank, or Branch,
or the Treasurer of the United States (according to where the subscription is directed:
to deliver the new securities to the State or Federal authority in exchange for the
old securities held by such authority.

Requirements applicable to subscriptions:
Subscriptions will be received at the Federal Reserve Banks and Branches and at the
Office of the Treasurer of the United States, Washington, D. C. 20220. Banking
institutions generally may submit subscriptions for account of customers, provided
the names of the customers are set forth in such subscriptions. All subscribers
requesting registered securities will be required to furnish appropriate identifying
numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Subscriptions from banking institutions for their own account, Federally-insured
savings and loan aSSOCiations, States, political subdivisions or instrumentalities
thereof, public penSion and retirement and other public funds, international
organizations in which the United States holds membership, foreign central bankS
and foreign States, Federal Reserve Banks, and Government Investment Accounts will
be received without deposit. Subscriptions from all others must be accomPB0ied by
deposit of eligible securities in an amount equal to 10% of the secuxities
applied for.

Denominations and other characteristics of new securities:
'l'he bonds will be issued in denominations of $500, $1,000, $5,000, $10,()OO, $100,000

Terms and Conditions of the Advance Refunding Offer
1. To all holders of the following outstanding Treasury securities:

Description
3-3/4~ note
5~
note
3-3/4~ note
4-7/8~ note
2-5/8~ bond
4-5/8~ note
2.

of securities
E-1964
B-1964
F-1964
C-1964
1965
A-1965

Final maturity
date
Aug. 15, 1964
Aug. 15, 1964
Nov. 15 , 1964
Nov. 15, 1964
Feb. 15, 1965
May 15, 1965

Issue date
Aug. 1, 1961
Oct. 15, 1959
Aug. 15, 1963
Feb. 15, 1960
June 15, 1958
May 15, 1960

Bew securities to be issued (or additional amount of an outstanding

Description of securities
Issue date
4~ bond of Aug. 15, 1970
June 20, 1963
4-1/4~ bond of May 15,1975-85 AprilS, 1960

!7 Interest
3.

Remaining term
Amount
to maturity
outstand1J
Yrs. - M:>s. (in billio)
$5.0
2.3
6.4
4.2
1
4.7
1
2.1

ts.-;:):

Amount
outstanding
(in billions) Interest starts!! Interest pays
$1.9
Jan. 22, 1964
Feb. 15 &Aug
0.5
Jan. 22, 1964
May 15 & Nov

on the securities surrendered stops on January 22, 1964.

!ems of the exchange:
Exchanges will be made on the basis of equal face amounts, with payments to or by the,
scriber, ,and with adjustments of accrued interest to January 22, 1964, on the securitj
surrendered and on the additional issue of bonds (per $100 face amount) as indicated bE

Securities
to be
exc~ed

3-3/4~
5~
3-3/4~
4-7/8~
2-5/8~
4-5/8~

note
note
note
note
bond
note

E-1964

~1964

F-1964
C-1964
1965
A-1965

Amounts to be paid to or by subscribers
Payable
On account of
to
accrued interest to
Net aJIlOunt
subscriber
Payable
Payable
on account
to
~
To be
To be
Extensic
of purchase subscriber : subscriber
paid
collected
of
price of
on
on
securities securities : securities
from
to
maturit~
Slib-"
to be
to be
:
to be
subscriber
YrB.-~S
scriber
issued 11 _e;;::x::;.;c~h:::a:::n.lo!.ge;:;.;d~...::_~i;;;;;s;.:;su..;;;.e.;..d~_
FOR THE 4tf, BONDS OF 1970
~0.222520
$1.630435
$2.357915
6 - C
$0.95
1.465998
2.173913
2.357915
6 - C
1.65
$0.707366
0.700549
2.357915
5 - 9
0.95
0.402799
0.910714
2.357915
5 - 9
1.85
1.466611
1.141304
2.357915
5 - e
(0.25)
5
~
0.864011
2.357915
0.306096
1.80
FOR THE 4-1/4~ BONDS OF 1975-85
I

3-3/4~ note E-1964
5~
note B-1964
3-3/4~ note F-1964

$0.05
$1.630435
$0.793956
$0.886479
0.75
2.173913
0.793956
2.129957
0.05
0.700549
0.793956
$0.043407
4-7/8'/J note C-1964
0.95
0.910714
0.793956
1.066758
2-5/8~ bond 1965
(1.15)
1.141304
0.793956
0.802652
4-5/~ note A-1965
0.90
0.864011
0.793956
0.970055
Amounts payable by subscribers are included within parenthesis.
The following coupons should be attached to the securities in bearer form when
surrendered:

Securities
3-3/4J note E-1964, 5~ note B-1964 and 2-578~ bond 1965
3-3/4~ note F-1964, 4-7/8~ note C-1964 and 4-5/8~ note A-1965

20 20 20 20 20 20 -

£
£
€
€
~

they arE

Coupons to be attached
Feb. 15, 1964, and subsequ
May 15, 1964, and subseque

--,--

TREASURY DEPARTMENT

FOR H1HEDIA TE RELEASE

January 8, 1964
ADVANCE REFUNDING OFFER

The Treasury today announced that it v,ill offer holders of six outstandinG"
TreasurY,securities an o~po:tunity to extend their holdings at attractive yields.
T~e publlC ~olds $15.3,b~1110n of the securities eligible for exchanGe; about $9.4
bl110n are neld by offlclal accounts. The outstanding total is $24.7 billion.
Holders of securities eligible for exchange have the option of exchano-inrt them,
as of January 22, 1964, (with payment for the nell bonds to be completed by and delivery
to be made on January 29) for t,w issues of bonds as follOlTS:
0

Securities eligible for exchange
and their maturity dates
3-3/ 4;~ notes,
notes,
5%
3-3/4)~ notes,
4-7/8% notes,
2-5/8% bonds,
4-5/8% notes,

E-19()LJ:
B-1964
F-1964
C-1964:
1965
A-1965

8/15/64
8/15/Gf)z

11/15/64
11/15/64
2/15/65
5/15/65

Securities offered in exchange
and their maturity dates
4~~

bonds, 1970 (additional issue)
8/15/70
4-1/4)i bonds, 1975-85 (additional issue)
5/15/75-85

The Treasury is placing an outside limit of $4 billion, or thereabouts, on the
aggregate amOQDt of the 4 percent bonds of 1970, and $750 rullion, or thereabouts, on
the aggregate amount of the 4-1/4 percent bonds of 1975-85 to be issued; therefore, all
subscriptions 'nll be received subject to allotment. Cash subscriptions are not invited.
The exchanges '-Till be made on the basis of par for par with accrued interest adjustments as of January 22, 1964, and vi th cash payments to or by tile subscribers vlhich will
approximately eQualize current market values aDlong eligible issues having different coupons and maturities, and provide an attractive exchange value for each of the issues
offered.
The exchanges will not be treated as a sale and purchase for tax purposes; therefore, there will be no recognition of gain or loss for Federal income tax purposes
solely on account of the exchange of old for nev securities. Details are presented in
the following paragraph No.9.
The subscription books will be open beginning Monday, January 13, and vTill remain
open through Friday, January 17, 1964, for all classes of subscribers.
Further details of the offering, including amounts of cash payments due to or by
subscribers) and the amounts of accrued interest adjustments, are described belOIT.

D-1092

TREASURY DEPARTMENT

January 8, 1964

FOR IMMEDIATE RELEASE
ADVANCE REFVNDING OFFER

The Treasury today announced that it will offer holders of six outstanding
Treasury securities an opportunity to extend their holdings at attractive yields.
The public holds $15.3 billion of the securities eligible for exchange; about $9.4
billon are held by official accounts. The outstandinG total is $24.7 billion.
Holders of securities eligible for exchange have the option of exchanging them,
as of January 22, 1964, (with payment for the new bonds to be completed by and delivery
to be made on January 29) for two issues of bonds as follows:
Securities offered in exchange
and their maturity dates

Securities eligible for exchange
and their ~turity dates
3-3/4% :1otes,
5~
notes,
3-3/4% notes,
4-7/8~ notes,
2-5/8% bonds,
4-5/8% notes,

E-l~i;·~

B-19G4
F-19G4
C-196~

1965
A-1965

8/15/;:-)4
I
8/1S/ Gc1
ll/15/G4
11/15/G4
2/15/65
5/15/65
I

bonds, 1970 (additional issue)

4-1/4~ bonds, 1975-85 (additional issue)

8/15/70

5/15/75-85

The Treasury is placing an outside limit of $4 billion, or thereabouts, on the
a 0 gregate amount of the 4 percent bonds of 1970, and $750 million, or thereabouts, on
the aggregate amount of the 4-1/4 percent bonds of 1975-85 to be issued; therefore, all
subscriptions will be received subject to allotment. Cash subscriptions are not invited.
The exchanges 'nll be made on the basis of par for par with accrued interest adjustments as of January 22, 1964, and with cash payments to or by the subscribers which will
approximately equalize current market values among eliGible issues having different coupons and maturities, and provide an attractive exchange value for each of the issues
offered.
The exchanges will not be treated as a sale and purchase for tax purposes; therefore, there will be no recognition of gain or loss for Federal income tax purposes
solely on account of the exchange of old for new securities. Details are presented in
the following paragraph No.9.
The subscription books will be open beginning Monday, Janua:rJ 13, a.Yld 'Hill remain
open through Friday, January 17, 1954, for all classes of subscribers.
Further details of the offerinG, including amounts of cash payments due to or by
subscribers, a.Yld the amounts of accrued interest adjustments, are described below.

~-1092

Terms and Conditions ot the Advance Refunding Otfer
1. !b all holders ot the tolloving outstanding Treasury securities:

~8eription

ot securities

3-3/41{, note B-19S4

sj
3-3/41{,

4-7/el{,
2-5/81{,

4-5/812.

note
note
note
bond
note

B-1964
F-1964
C-1964
1965
A-1965

Issue date
Aug. 1, 1961
Oct. 15, 1959
Aug. 15, 1963
lI'eb. 15, 1960
June 15, 1958
May 15, 1960

Remaining term
to maturity
Irs. - It>s.

1
1

6-3/4
6-3/4
9-3/4
9-3/4
3/4
3-3/4

Amount
outstanding
(in billions2
$5.0
2.3
6.4
4.2
4.7
2.1

New securities to be issued (or additional amount of an outstanding issue):

Description ot securities

Issue date

bond of Aug. 15, 1970
June 20, 1963
4-1/4'" bond ot May 15,1975-85 April 5, 1960

Final maturity
date
Aug. 15, 1964
Aug. 15, 1964
Nov. 15, 1964
lfov. 15, 1964
Feb. 15, 1965
May 15, 1965

Amount
outstanding
(in billionsl Interest starts!! Interest payable
$1..9
0.5

Jan. 22, 1964
Jan. 22, 1964

Feb. 15 & Aug. 15
May 15 & Nov. 15

Interest on the securities surrendered stops on January 22, 1964.

3. Terms ot the exchange:
Exch&n~es will be made on the basis of equal face amounts, vith payments to or by the subscriber, and with adjustments of accrued interest to January 22, 1964, on the securities
surrendered and on the additional issue of bonds (per $100 face amount) as indicated below:
Amounts to be paid to or bl subscribers
On account of
Payable
Net amount
accrued
interest to
to
Payable
Payable
subscriber
to
on account
~
Extension
To be
To be
subscriber
of purchase subscriber
of
collected
paid
on
on
price of
maturity
from
to
securities
securities
securities
Securities
subsubto be
to be
to be
to be
Irs.-Mos.
scriber
scriber
issued
exchan~ed
issued 11
exchanged
FOR THE
3-3/41{, note E-1964
5~
3-3/4~

note
note
4-7/8'" note
2-5/8'" bond
4-5/8'" note

B-1964
F-1964
C-1964
1965
A-1965

$0.95
1.65
0.95
1.85
(0.25)
1.80

BONDS OF 1970
$2.357915
2.357915
2.357915
2.357915
2.357915
2.357915

$0.222520
$1.630435
1.465998
2.173913
0.700549
0.402799
0.910714
1.141304
0.306096
0.864011
FOR THE 4-lL4~ BONDS OF 1915-85

$0.707366
1.466611

6
6
5
5
5
5

0
0
9
9
6
3

note E-1964
$0.05
$1.630435
$0.193956
$0.886419
20 = 9
9
note B-1964
0.15
2.173913
0.793956
2.129957
20
note F-1964
0.05
0.700549
0.793956
$0.043407 20 = ~
note C-1964
0.95
0.910714
0.793956
1.066758
2 220 _ 3
0
2-5/8~ bond 1965
(1.15)
1.141304
0.793956
0.80265
4-5/e~ note A-1965
0.90
0.864011
0.793956
0.910055
20 - 0
"!I Amounts payable by subscribers are included vithin parenthesis.
The folloving coupons should be attached to the securities in bearer form when they are
surrendered:
Coupons to be attached
Securities
Feb. 15, 1964, and subsequent
3-374~ note E-1964, 5~ note B-1964 and 2-578~ bond 1965
May 15, 1964, and subsequent
3-3/41{, no~ F.196 4, 4_7/Bf not~ C-1964 and 4-5/8'" note A-1965
3-3/4'"
5~
3-3/4'"
4-1/el{,

Payment:
Payment for the new securities allotted and the net amount to be collected from
subscribers, as shown in the table in the preceding paragraph, must be completed
by January 29, 1964. Where the table shows a net amount payable to subscribers,
the payment will be made by the Treasury, if bearer securities are surrendered
following their acceptance, and if registered securities are surrendered following
discharge of registration in accordance with the assignments on the securities.
The new securities will be delivered January 29, 1964.

Limitation on amount of securities to be issued:
While it is not practicable to estimate the extent of investor acceptance, the
Treasury is placing an outside limit of $4 billion, or thereabouts, on the aggregate
amount of the 4 percent bonds of 1970, and $750 million, or thereabouts, on the
aggreg~te amount of the 4-1/4 percent bonds of 1975-85 to be issued.
In the event the limit on either issue is exceeded, subscriptions to the respective
issue will be sub.1ect to allotment.

Books open for subscriptions for the new securities:
The books will be open for the receipt of subscriptions from Monday, January 13,
through Friday, January 17 I 1964.
Subscriptions placed in the mail by midnight,
January 17, addressed to any Federal Reserve Bank or Branch or the Office of the
Treasurer of the United States, Washington, D. C. 20220, Will be considered as timely.
The use of registered mail is recommended for the security holders' protection in
sub:nitting securit:i.es to be exchanged.
If securities eligible for exchange are pledged with a State or Federal Government
agency or authority and such securities cannot or will not be released by such
authority to the pledgor in time for use in making payment for the securities
offered in this exchange, the pledgor may, nevertheless, enter a subscription.
Such subscriptions should be accompanied by a letter signed by an authorized official
of the pledgor explaining the circumstances and, if the authority will not release
the securities, a request and authorization for the Federal Reserve Bank, or Branch,
or the Treasurer of the United States (according to where the subscription is directed)
to deliver the new securities to the State or Federal authority in exchange for the
old securities held by such authority.

Requirements applicable to subscriptions:
SubSCriptions will be received at the Federal Reserve Banks and Branches and at the
Office of the Treasurer of the United States, Washington, D. C. 20220. Banking
institutions generally may submit subscriptions for account of customers, provided
the names of the customers are set forth in such subscriptions. All subscribers
requesting registered securities will be required to furnish appropriate identifying
numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Subscriptions from ba~:ing institutions for their own account, Federally-insured
sRvings and loan associations, States, political subdivisions or instrumentalities
thereof, public pension and retirement and other public funds, international
organizations in which the United States holds membership, foreign central banks
and foreign States, Federal Reserre Banks, and Government Investment Accounts will
be received without depOSit. Subscriptions from all others must be accompanied by
deposit of eligible securities in an amount equal to 10% of the securities
applied for.

Denom 1 nations and other characteristics of ney securities:
The oonds will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000
and $1,000,000 in coupon and registered forms. The bonds will be acceptable to secure
deposits of public moneys.

Nonrecognition 01' gain or

~oss

for Federal income tax purposes:

(a) General-- The Secretary of the Treasury has declared pursuant to
of the Internal Revenue Code that no gain or loss shall be r~eogn1Zea

Sp~tion

1037(a)

ror~ederal

income tax purposes soleJ.¥ on account of the exchanGe of the securities' houever
section 1031{b) of the Code requires recognition of any eain realized o~ the exchange
to the extent thnt money (other than interest) is received by the security holder in
connection with the exchange as indicated in (b).
(b) Where the securities to be issued are offered b the Treas
with a a ent to
the-investor-- If the fair market value 1 of the securities to be issued plus th
amount paid to the investor (discount) exceeds the cost basis to the investor of ~he
securities to be exchanged, such gain (but not to exceed the amount of the payment)
must be recognized and acc~unted for as gain for the taxable year of exchange. He
Will carry the new securit~es on his books at the same amount as he is now carrying
the old securities except that he will reduce the cost basis by the amount of the payment and increase it by the amount of the gain recognized. If the fair market value
of the new securities plus the amount of the payment does not exceed the cost basis
of the old securities, the l)asis in the new securities will be the cost basis in the old
securities reduced by the aJllount of the payment.
(c) Where premium is paid by the subscriber-- If a premium is paid by the subscriber
no gain or loss will be recognized; but his tax basis in the new securities will be
his cost basis in the old securities lncreased by the runount of the premium.
(d) Gain
to the extent not recognized. under (b) (or loss) ' if any , upon the old
.
secur i t~es surrendered in exchange will be taken into account upon the disposition
or redemption of the new securities. (See appendix to paragraph 9 attached.)

II The
10.

mean of the bid and aslted quotations on date subscriptions are submitted.

Federal estate tax option on the 4-1/4,'10 bonds of 1975-85:
The 4-1/4% bonds of 1975-85 will be redeemable at par and accrued interest prior to
maturity for the pua~ose of using the proceeds in payment of Federal estate taxes
but onJ.¥ if they are owned by the decedent at the time of his death and thereupon
constitute part of his estate.

11.

12.

Computation of reinvestment rate for the extension of maturity:
A holder of the outstanding eligible securities has the option of accepting the
Treasury I s exchange offer or of holding them to maturity. ConsequentJ.¥, he can compare
the interest plus (or rod.nus) any payment, other than the adjustment of accrued interest,
he will receive resulting from exchanging now with the total of the interest on the
eligible issues and whai; he might obtain by reinvesting the proceeds of the eligible
securities at maturity.
The income before tax for making the ex-tension now through exchange Will be the
coupon rates plus (or minus) any payment on the new issues. If a holder of the
eligible securities does not make the exchange he would receive the coupon rates on
the eligible issues to their maturity and would have to reinvest at that time at a
rate equal to that indicated 1n paragraph 13 below for the remaining terms of the issues
now offered in order to equal the return (including any payment) he would receive by
accepting the exchange offer. For example, if the 3-3/4% notes of 11/15/64 are exchanged for the 410 bonds of 8/15/70, the investor receives 4% for the entire 6 yeurs
and six and three-fourth months plus $0.95 (per $100 face value) iIm1l8diateJ.¥. If the
exchange if not made a 3-3/4% rate will be received until November 15, 1964, requiring
reinvestment of the ~roceeds of the 3_3/4 I s of November 1964 at that time at a rate of
at least 4.24% for the remaining five years and nine months, all at compound interest,
to average out to a 4% rate for six years and six and three-fourth months plus the $0.95
inmediate payment. This minimum reinvestment rate for the extension period is shown in
the table under paragraph 13. The minimum reinvestment rates for the other issues
includ:d in the exchange are also shown in the table under paragraph 13.

Li.

L:nts on lSSlle pri co [''':ld invcstlaent rates on the
holdcrc of tl~ eli~ible securities:

l'L. J';

3-3/ 4',~

Notes
8/15/64

nO\1

bonds offered i!1

ex~hnnge

5'~

3-3/ 4:~

4-7/8~

2-5/8~~

4-5/8;'

Notes
8/15/64

Notes
11/15/64

Bonds
2/15/G5

5/15/0

Note~

FOR TIrE HE\[ 45f BONDS OF AUGU$T 15, 1970
Pa~~ents

on account of $100
i:::;sue price:
To :::;ubscriber-------------By :::;ubscriber--------------

$0.95

$1.65

$1.85

$0.95

Approximate investment yield
from exchange date (1/22/64)
to maturity of bonds offered
in exchan2e based on price
of securities eligible for
exchange

y------------------

minimum reinvestment rate for the
extension period ~/----------

$1.8C
$0.25

4.15;'

4.15%

4.24

4.25

Approxin~te

4.21

4.24

4.23

FOR THE NEW 4-1/4% BONDS OF MAY 1~,.1975-85
Payments on account of $100
issue price:
To subscriber-------------By subscriber--------------

$0.05

y-----------------

$0.05

$0.95

$0.90
$1.15

Approximate investment yield
from exchange do.te (1/22/64)
to first call date or to
maturity of bonds offered in
exchange based on price of
securities eligible for
exchange
Approximate minimum reinvestment rate for the extension
period:?:.!
To first call date-------To maturity---------------

$0.75

4.29
4.27

4.25%

4.251>

4.29
4.27

4.30
4.28

4.31
4.28

4.25%

4.25

4.32
4.29

4.31
4.28

Yield to nontaxable holder or before tax. Based on me~ of bid and asked prices
(adjusted for payments on account of issue price) at'ribon on January 7,1964 •
• 1_,

~/ Rate for nontaxable holder or before tax.

•

For explanatloq ~~e paragraph 12 above.

APPENDIX TO PARAGRAPH NO. 9
NONRECOONrrION OF GAIN OR LOSS FOR FEDERAL INCOME TAX PURPOSES

Where a bond is offered by the Treasury with a payment (other than the accrued interest
adjustment) to the investor.
Examples:
1.

Assume that:
(a)

The fair market value of the security offered by the Treasury on the date
the subscription is s~bm1tted is $99.50 (per $100 face value).

(b)

The payment to the subscriber (discount) on account of $100 issue price
is $.80.

(c)

The amortised cost baais of the security surrendered on the books of the
subscriber is $100.50 (per $100 face value). (It is assumed that the
security surrendered was bought at a price above $100.50 and that the
original premium wns reduced prorata over the period from purchase date
to maturity.)

The sum of the fair market value of the security offered by the Treasury and
the payment to the subscriber is $99.50 + $.80 or $100.30. This is less than
the cost basis of the issue surrendered, therefore, no gain is recognized.
The new issue will be entered on the books of the subscriber at a cost basis
of $99.70, the cost basis of the issue surrendered less $.80. The gain or loss
between this cost basis and the proceeds of a subsequent sale or redemption
of the new issue will be a capital gain or loss to all investors, except those
to whom the securities are stock in trade. Under present law, if the combined
time that the security surrendereli and the new security received in exchange
were held exceeds 6 months, the capital gain or loss is long-term, otherwise
it is short-term.
2.

The assumptions are the same as in example 1 except that the payment
(discount) to the subscriber 1s now $1.20 (per $100 face value) instead of
$.80 in example 1.
The sum of the fair market value of the new securjty received in exchange by
the subscriber plus the $1.20 p~yment (discount) is $100.70. This exceeds
the cost basis of the security surrendered by $.20. This excess is a
recognized gain reportable for the ~~ar in which the exchange takes place.
The eain is a capital gain except to those to whom the securities are stock
in trade. Under present law, if the time the security surrendered was held
exceeds 6 months, the capital gain is lone-term, otherwise it is short-term.
The subscriber will carry the new issue received in exchange at a cost basis
e9 ual to the basis of the issue surrendered ($100.50), less the payment
($1. 20 ), plus the amount of the recogni zed gain ($.20), or ($100.50 $1.20 + $.20) $ 99.50.

The assumptions are the same as in exarrq)le 1, except that the cost basis on
the books of the subscriber, of the security surrendered is $99.00 (per $100
face value) instead of $100.50 in example 1.
The sum of the fair market value of the nell issue received in exchange by the
subscriber plus the $.80 payment (discount) is $100.30 (as in example 1). This
exceeds the $99.00 cost basiS by more than $.80. However, the amount of the
gain reportable for the year of' the exchange is $.80, since the amount of gain
recognized cannot exceed'the amount of the payment. The nature of the
recognized gain nnd its treatment is the same as in example 2.
ClUIC, the bub~riber will enter the new security rec~ived ::'n exchange
on his books nt $99.00, the same cost basis as the security surrendered.

]a tld8

4
tOR RELEASE:

UPON DELIVERY

STATEMENT OF THE HONORABLE JOHN C. BULLITT
ASSISTANT SECRETARY OF THE TREASURY
AND

U.S. EXECUTIVE DIRECTOR
INTERNATIONAL DEVELOPMENT ASSOCIATION
BEFORE THE HOUSE COMMITTEE ON BANKING AND CURRENCY
ON LEGISLATION AFFECTING
THE INTERNATIONAL DEVELOPMENT ASSOCIATION
JANUARY 8, 1964, 10:00 A.M. EST
Mr. Chairman and Members of the Committee:

It is a pleasure to appear before you today in connection
with the participation of the United States in an important
increase in the financial resources of the International
Development Association (IDA).

The legislation before you

would authorize the United States to subscribe its proportionate
share of this increase.

The National Advisory Council on

International Monetary and Financial Problems has considered
and reported on this matter, and has strongly recommended
early and favorable action by the Congress.

Copies of its

report are before you.
Today's request is for authority which would permit the
United States to participate with sixteen other economically
advanced members of IDA in an increase of $750 million in the
Association's hard currency resources, to be paid in over a

- 2 three-year period, beginning in fiscal 1966, at the rate of
$250 million a year.

In comparison with the annual payments

initially subscribed to IDA, the present proposal means an
increase of two-thirds in the amounts we and these other
countries are providing for use by this effective, multilateral
institution.
Action on this matter is required now, because the
Association will very shortly exhaust its authority to make
credit commitments against its existing subscribed resources.
These present resources are still in the process of being
paid in under a five-year schedule, with the final payment
falling due in November, 1964.

Thus, while IDA currently

has funds with which to make disbursements on commitments
already made, it needs prompt assurance of the future avai1ability of new funds if it is to continue to make new commitments.

Although authorization for our participation is

required now in order to permit IDA to continue operations,
no appropriation of funds would be required until fiscal year
1966.
As of January 3, 1964, eighty-four of the ninety members
of IDA,representing 70.56% of total voting strength, had cast
their votes in favor of the increase in resources.

All of the

- 3 advanced members of IDA who are to contribute to the increase
have voted favorably, with the exception of Italy and the
United States.
Structure and Operations of IDA
I would like to review briefly the nature of the
International Development Association and its accomplishments
to date.

IDA came into existence in September, 1960, as an

affiliate of the World Bank, and is located here in Washington.
Any member country of the World Bank may join the Association,
and as of December 31, 1963, 90 of the 101 members of the Bank
were also members of the Association.

IDA has no staff

separate from its parent institution; instead, for reasons both
of economy and coordination, the regular World Bank staff performs
IDA's loan appraisal and other functions, and IDA reimburses the
Bank for these services.

Similarly, IDA's Board of Executive

Directors, which oversees day-to-day operations, consists of
the World Bank's Executive Directors serving

officio.

The

senior policy body of IDA, the Board of Governors, consists of
the IBRD Governors of IDA member countries, also serving
ex officio.

- 4 IDA's membership is divided into two categories:

the

Part I countries are the economically advanced countries of
the free world and supply the great bulk of the Association's
hard currency resources, while the Part II countries are the
developing nations, which are the recipients of IDA's credits.
Member countries initially subscribed to IDA in approximate
proportion to their subscriptions to the International Bank,
and voting strength is based on the relative size of subscriptions.

Part I countries are required to pay their entire

initial subscriptions in convertible currencies, whereas
Part II countries are required to pay 10% of their initial
subscriptions in convertible currency and the remaining 90%
in local currency which may not be used outside the member
country without its permission.

Total subscriptions as of

December 31, 1963, were $984.4 million, of which $766.9 million
was due in convertible currency and $217.5 million in
restricted local currency.

Initial subscriptions were made

payable in five annual installments, the fourth of which fell
due on November 8, 1963.

The subscription of the United States

to IDA amounts to $320.29 million, on which $258.6 million has
already been paid in.

- 5 -

IDA makes credits for the same general purposes as the
World Bank, but its terms differ sharply from those carried
by the World Bank's loans, which are now at 5-1/2% interest
and for period up to about 25 years.

All IDA credits are

made for a term of 50 years, and bear no interest, but carry
a service charge of 3/4% per annum.

There is a 10-year grace

period on repayment of principal; in the next ten years, 1% of
principal is repaid annually; and in the final thirty years,
3% of principal is repaid annually.
Out of its total lendable resources in hard currency of
just over $750 million, IDA had committed $577 million on 47
credits in 20 countries by December 31, 1963.

Disbursements

as of that date were approximately $130 million.
A major part of IDA's commitments has gone to projects
in Asia and the Middle East.

Latin America has been the next

largest recipient, followed by Africa and Europe.

The

European activities of IDA have been confined exclusively to
Turkey.
Need for Finance on IDA Terms
The external public debt of developing countries more
than doubled between 1955 and 1961.

However, this dramatic

increase was not matched by a comparable increase in the

- 6 -

foreign exchange earnings required to meet this heavier debt
servicing burden.
in a dilemma.

The developing countries are thus caught

On the one hand, they can incur further debt

on conventional terms, which in most cases would be imprudent
in the light of their over-all debt servicing capacity and
would have adverse repercussions on the stability of the international monetary system.

On the other hand, they can curtail

sharply the inflow of external resources, which may slow down
or even reverse the 'forward motion of their development, with
dangerous political and social consequences.
IDA was established a little over three years ago as one
way of mobilizing the resources of the economically advanced
countries to alleviate this dangerous situation.

Many of

the developed countries recognize the seriousness of the
problem of accumulation of short-term, high-interest debt by
the developing countries.

They are -- increasingly -- providing

funds to finance development at a cost the developing countries
can afford.

One of the most effective ways we can get other

countries to share in this effort is by this proposed increase
in IDA resources, although IDA can only meet a portion of the
demand for development funds on appropriate terms.

- 7 Details of the Proposal
In brief outline, the proposal recommended to the IDA
Governors by the Executive Directors in their report of
September 9, 1963 is for an increase of $750 million in the
hard currency resources of the Association, such increase to
be entirely paid in by seventeen Part I countries over a
three-year period commencing in FY 1966.

The Part II countries

will have no part in this increase in capital.

Compared with

the initial subscriptions to the Association, which are being
paid over a five-year period, the new resources represent a
two-thirds increase in the annual volume of funds being made
available.
Except in the case of Belgium and Luxembourg, the new
resources take the form of additional contributions to IDA,
without voting rights, rather than subscriptions which would
carry voting rights.

The U.S. already enjoys over a quarter

of the total voting power, and this favorable position will
not be significantly changed.

Belgium and Luxembourg, which

have not previously joined IDA, are now doing so, and half of
their participation in the new resources will be considered
as their initial subscriptions with voting rights and the
other half will be on the same non-voting basis as the
remaining participants.

- 8 -

The share of the United States in the new resources is
$312 million, or 41.6% of the $750 million total.

This

represents a slight reduction from our 43% share in the
initial subscriptions to the Association.

There has been a

significant increase in the shares pledged by Canada, France,
Germany, Italy, Japan, and Sweden, while at the same time
there were significant reductions in the shares of the United
Kingdom and the Netherlands.

These changes are a reflection

of changed conditions in the countries concerned since the
initial subscriptions were agreed upon and provide a sounder
basis for the future.
significantly.

South Africa also reduced its share

Kuwait, which was not initially a member of

IDA, joined as a Part I country on September 13, 1962, but is
not participating in the new contributions.

The shares of

the other Part I countries show only minor variations from
their initial subscriptions.

The attached table shows amounts

and shares of each Part I country's initial subscription and
their participation in the proposed new resources.
By the terms of the resolution, the Governors of IDA
were originally required to vote by December 31, 1963 to
authorize the Association to accept the resources to be
provided by the Part I members, but this date has been extended

- 9 by the Executive Directors to March 1, 1964.

The under-

standing among the participating countries provides that no
country's commitment will become effective unless twelve of
the seventeen contributors, representing $600 million of the
$750 million total, agree -- also by March 1, 1964 -- to make
their contributions on the proposed terms.

It is evident that

the proposal cannot corne into effect without affirmative
action by the United States.

IDA's need for an early assurance

of additional funds argues for prompt action by the March 1
deadline, in order to avoid an interruption in the smooth flow
of IDA's credit activities.
The Proposed Legislation
The bill before you would amend the International
Development Association Act in order to provide for three
things.

First, it would authorize Secretary Dillon, as U.S.

Governor of IDA, to vote in favor of an increase in the
resources of the Association.

Second, it would authorize him

to agree, on behalf of the United States, to contribute $312
million to the Association as the U.S. share of the increase
in resources, and would authorize the appropriation of that
sum, without fiscal year limitation.

Finally, it would

eliminate existing language which limits the issuance of

- 10 non-interest bearing notes to the amount of the initial
subscription of the United States.

This is necessary to

permit the United States to substitute non-interest bearing
notes for the new resources until IDA actually requires cash
for disbursement, and thereby to minimize the cost to the
Treasury of this contribution.
I wish to re-emphasize that the authority being requested
today for IDA does not carry with it any requirement for an
immediate appropriation, and will not impose any budgetary
burden during the next fiscal year.

No payment is required

until fiscal 1966; assuming enactment of the authorizing
legislation we are seeking, an appropriation request will be
presented in January, 1965 as part of the 1966 Budget Message.
Advantage of IDA to the United States
No discussion of IDA can be complete if it omits
reference to a fundamental fact:

IDA, like no other multi-

lateral institution, mobilizes substantial amounts of development funds from the other advanced countries for lending on
terms that are fully adapted to the needs of the developing
countries.

For every dollar the United States has put up of

the initial subscriptions, other Part I countries have put up
$1.32.

For every dollar the United States will put up in

additional resources, other Part I participants will put up

- 11 -

$1.40.

In both cases, the funds of others are contributed

to IDA on exactly the same terms as the U.S. funds.

For some

of the smaller countries, IDA is the only mechanism through
which they engage in any significant amount of foreign development lending, and therefore IDA is the only technique we have
available for getting these countries to share the aid burden
with us.
Action by Subcommittee
It is my understanding that the Subcommittee on International Finance, which held hearings on this legislation in
December, has recommended it favorably to this Committee, and
that in doing so, the Subcommittee also recommended the
addition of a new section to H.R. 9022 which would urge U.S.
representatives on the World Bank and IDA to follow certain
lines of policy relating to these institutions.

In brief

these would be (a) to seek to reduce the U.S. share in any
future replenishment of IDA, (b) to promote the

tra~sfer

an appropriate part of future net income of the World Bank to
its affiliates for use in their lending operations, and (c) to
encourage a further shift in the emphasis of IBRD financial
operations, particularly borrowings, toward the capital markets
of Western Europe.

- 12 We are glad to have these expressions of Congressional
views, which coincide with the Administration's policy.

This

being the case, we would think that they could be confined to
the Committee Report, rather than being included in the
legislation.

In the replenishment for which we are presently

seeking authorization, we have reduced our share somewhat, and
under present economic circumstances, we would want to reduce
it somewhat further for any additional replenishment of IDA.
As I noted in my testimony before the Subcommittee, significant
progress has been made toward a transfer of some part of the
World Bank's future net income to its affiliates, and I expect
that a concrete proposal will be offered by the management before
the end of this year.

Finally, we have continued to urge the

World Bank to develop its borrowing operations in Western
European markets.

Only one World Bank bond sale has been made

in the United States since 1960, and the 'lolume of portfolio
sales to U.S. investors is now a fraction of such sales to
non-U.S. investors.
Conclusion

Mr. Chairman, much of the impetus Lor the establishment
of IDA originally came from the

Congre~s

itself and the

Congress has reaffirmed its confidence in the institution

- 13 -

through annual appropriations for our initial subscription.
The United States has in the past assumed a position of
leadership regarding IDA, and has done so again in playing
the major role in obtaining the agreement of others to this
substantial augmentation of the Association's resources.
therefore urge that you act favorably on this bill.
Thank you, Mr. Chairman.

PROPOSED PARTICIPATION IN INCREASE OF IDA RESOURCES
[In millions of u.S. dollars and
Initial resources
Country
fotal

Annual
rate

10 18
5.04

4.04
1.01

37.83
8.74
3.83
52.96
52.96
18.16
33.59
3.36

7.57
1. 75
.766
10.59
10.59
3.63
6.72
.67

Australia
Austria
Belgium
Canada
Denmark
?inland
Prance
Germany
Italy
Japan
Kuwait
Luxembourg
Netherlands
Norway
South Africa
Sweden
United Kingdol:1
United States

27.74
6.72
10.09
10.09
131.14
320.29

Total

742.72

Note:

percentag~

Proposed amount of
new resources
Total

Annual
rate

19.80
5.04
16.50
41.70
7.50
2.298
61. 872
72.60
30.00
41.25

6.60
1.68
5.50
13.90
2.50
.766
20.624
24.20
10.00
13.75

Percent
share of
initial
resources

Percent
share of
new
resources

2.72
0.67

2.64
.67
2.20
5.56
1.00
.31
8.25
9.68
4.00
5.50

5.09
1.18
0.52
7.13
7.13
2.45
4.52
0.45

5.55
1.34
2.02
L.02
26.23
64.06

.75
16.50
6.60
3.99
15.00
96.00
312.00

.25
5.50
2.20
1.33
5.00
32.20
104.00

3.73
0.90
1.36
1.36
17.66
43.12

.10
2.20
.88
.53
2.00
12.88
41.60

148 56

750.00

250.00

100.00

Detail may not add to totals due to rounding.

IIf,KUII A. M. IIWSPUDS,

,• • '!!!!17 10. 1~64~
UOLTS

Ft..

January 'I, 1964

or 1'IEASURl'S

$2.S BIWOI 1$9-l'l/iY ~'AX ANTI\;lf'~:~'I(''Ni3lLL

C)VF,RINU

!tie TNuur,r I'lItparta••t. . .nO_Ged 1.., .wning that the tender f
,. ,
of to AMlelpaU.. 5er1ea 159...., 1'...,......,. b1ll.
Dr.:~~::::.,~
......
\0 - . . . 1 - 22, 1984, which .re otfwed on January 2, 118ft operaed at tbe '
........ - ~1IIRlal"J' 9.
n. MaU.a of t.h1. lane aN . . loUo.,

to! ..

tet.al appu..ct tar - $2, m,619.OtJO
I'ftal ....pMd
- 2,500,109,000 (inelude. ;$10),569,000 fi1\wred

Oft

l1OnCap9t1ti\e buis and aocepted in
f'Ull at the a_nr~ price shown below)

.... et . . .ptecl odllpeUti•• Diu.

BlItl

- 98.1&00 Iqdva1eat. rate

:>.L'

disooum.

Low

... 9S.370

tf»

• .,.....

- 98.)88

(la~ oE tJJe aafMIIlt. bUfoJ" at the

ret I N1

... Ie..

foUl

... lark

~
~

).6S():~

•

as.-..

18,505,000

2,lSij,111,OOO

6,,225,000

U,72S,OOO
6),22$,000

5,28'1,000

4,'('16,000
2S,261,OOO

n6,3S9,ooo

Dall..
8a Fnnoboo

TOTAL

8,155,000

1,928,731.000

4, 778,CXX>

CDaioap
ft. LcMda
II1aIupolla
..... Cit,'

"!I

ACO$P'~d

20,825,000

Au..\a

low price was accepted)
Total

~ For

Dl.vs..\
Botnaa

V... oovpon tae_

approx. 3.62)4 per mma
"
).691.% fI
H

21,,)59,000
16,692,000
IIi" 986,000

19,692,000
14,988,000
12,057,000
20,958,000
_ lI!,160,OOO

$2,779,619,000

$,.,00,109,000

12,i)57,~)

2O,9S~.tOOO

;U8,160,oqg

01 'the ~... len~;"b and for the 8aM UlOW');t invested. the return an
blUe would prorlda a yield of }.11~. Interest, rates on hWs ant quoted in
\efta of bank diMOlmt wit.h ~ return related to the face amount of the billa pq~ at ......1V ratbar t.han the ..,.t iftftlJted and their length in. actual maber
fill ..,. nlaW to a ~ rear- In. oontru't, yields on certificates, n,)t.e., and
Iklad.e are .."..t.d int.enu or inteftst on the aIO\\ftt 1Jmtste4, and relate the ma.... of dqa ~ 1D an interast papent [lCU"iotl to the a,ctual m.arabeJt 01 days 1ft
U. per1od_ with ~ O<8?oundiB& if lION t.han one coupon period 1& in'Yol....

u...

TREASURY DEPARTMENT

FOR RELEASE A. M• NEWSPAPERS,

January 9, 1964

Friday, January 10, 1964.

RESULTS OF TREASURY'S $2.5 BILLION 159-DAY TAX ANTICIPATION BILL OFFERING
The Treasur,y Department announoed last evening that the tenders for $2,500,000,000
or thereabouts, of Tax Anticipation Series 159-day Treasury bills to be dated January 1~
1964, and to mature June 22, 1964, which were offered on January 2, were opened at the
Federal Reserve Banks on January 9.
The details of this issue are as follows:
Total applied for - $2,779,619,000
Total accepted
2,500,109,000

Range

(includes $105,569,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)

of aocepted competitive bids:

High
98.400 Equivalent rate 01 diSCOU"1t approx. 3.623:,~ per annum
Low
98.370
II
,,'j
11
11
3.691~"
"
Average
98.388
II
""
"
"
3.65O:~"
"Y
(18% of the amount bid for at the low price was accepted)
Federal Reserve
Total
Total
District
Applied For
Accepted
Boston
$ 18,565,000
$
8,155,000
New York
2,184,731,000
1,928,731,000
Philadelphia
20,625,000
11,725,000
Cleveland
63,225,000
63,225,000
Riohmond
4,778,000
4,773,000
Atlanta
25,281,000
25,281,000
Chicago
216,359,000
21),359,000
st. Louis
19,692,000
18,692,000
Hinneapo1is
J..4,988,000
J..4,988,000
Kansas City
12,057,000
12,057,000
Dallas
20,958,000
20,958,000
San Francisco
17::,16'), O(il)
178,160,000
TOTAL
$2,779,619,000
$2,500,109,000

On a coupon issue of the same length and for the same amount invesr.ed, the return on
these bills would provide a yield of 3.77%. Interest rates on bills are quoted in

terms of bank discount with the ret~~ related to the face amount of the bills pa
able 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, an
bonds are computed in tems of interest on the amount invested, and relate the num
ber of days remaunng in an interest paj!11ent fleriod t" the act'J.al n"JITlber of days i
the period, with semiannual compoQ~ding if more than one coupon period is involved

In response to numerous
~

forthcoming advance refunding

iea, the Treasury stated today tha~in (~
it will not allot beyond the limits already

announced for accepted subscriptions.

The Treasury will not allot more than

$4 billion of the 4 percent bonds of August, 1970, nor more than $3/4 billion
of the

4k percent

bonds of May, 1975-85.

TREASURY DEPARTMENT

January 10, 1964

MEMORANDUM TO CORRESPONDtNTS:
In response to numerous inquiries, the Treasury
stated today that, in its forthcoming advance
refunding announced Wednesday, it will not allot
beyond the limits already announced for accepted
subscriptions.

The Treasury will not allot more

than $4 billion of the 4 percent bonds of August,
1970, nor more than $3/4 billion of the 4-1/4 percent
bonds of May, 1975-85.

000

- 2 -

Proof coin sets, are manufactured only at the Philadelphia
Mint, and the operation is entirely separate from the manufacture
of regular domestic coins.
Mint's output of regular
of 4 billion pieces.

Their production has no effect on the

coin~which

this year will be in excess

The making of proofs is a special operation,

whereas regular coin production is on a mass basis.
and techniques of each are not interchangeable.

000

The tools

MINT STOPS ORDERS FOR 1964 PROOF COIN SETS
The Director of the Mint, Miss Eva Adams, announced today
that the Mint has stopped accepting orders for 1964 proof coin
sets.
An unprecedented number of orders for the proof coin sets

ha~ been received by the Philadelphia Mint and orders have

already exceeded the limit of production for

the year.

a result, many of the orders, cannot be filled, Miss Adams said.
The Philadelphia Mint will contunue to open and sort the
orders
d~ pyo ""'f' H,;t ~,:, \J~ C.~' I b l~
large backlog of mail/and return ~ all 0r:~ors it cannot fill .....
.. pr09Zp€] T "l~'p•• s iF l!E .

4 ~ Proof

coin sets produced by the Mint during the past ten

,fyears have been as follows:

195i~

1955

('IV
f

~_\ ~

1956

1951
].95:Ct
.
;;I

;;!.r5,J50

1959

l,l,9,i;;91

.f'('$,.2OC

1960

...

1, (»);1, &.:..\;

66SJ, .;;B ~j.

1:.-61

.,;,t);;.·j.2- ~

1,2'~1 ,.952

1961

)12li~ ,,019

875,652

196~,

I')

,'j i ) , .) , ')
'\ -;0--'"

£~. t'"

TREASURY DEPARTMENT

January 10, 1964
FOR RELEASE SUNDAY NEWSPAPERS
JANUARY 12, 1964
MINT STOPS ORDERS FOR 1964 PROOF COIN SETS
The Director of the Mint, Miss Eva Adams, announced today
that the Mint has stopped accepting orders for 1964 proof coin
sets.
An unprecedented number of orders for the proof coin sets
has been received by the Philadelphia Mint and orders have
already exceeded the limit of production for the year. As a
result, many of the orders, cannot be filled, Miss Adams said.
The Philadelphia Mint will continue to open and sort the
large backlog of mail orders and return as promptly as possible
all orders it cannot fill.
Proof coins are made from specially prepared blanks and dies,
have a mirror-like finish and are produced for numismatic purposes.
Proof coin sets produced by the Mint during the past ten years
have been as follows:
1954
1955
1956
1957
1958

1959
1960
1961
1962
1963

233,350
378,200
669,384
1,247,952
875,652

1,149,291
1,691,602
3,028,244
3,218,019
3,075,645

Proof coin sets, are manufactured only at the Philadelphia
Mint, and the operation is entirely separate from the manufacture
of regular domestic coins. Their production has no effect on the
Mint's output of regular coins, which this year will be in excess
of 4 billion pieces. The making of proofs is a special operation,
whereas regular coin production is on a mass basis. The tools
and techniques of each are not interchangeable.
000

D-1094

TREASURY DEPARTMENT

January 10, 1964

FOR IMMEDIATE RELEASE

TREASURY MARKET TRANSACTIONS IN DECEMBER
During December 1963, market transactions in
direct and guaranteed securities of the government for Treasury investment and other aocounts
resulted in net purchases by the Treasury Department of $33,843,750.00.

000

D-1095

TREASURY DEPARTMENT

J nnuarv

10, 1964

!9S IMMEDIATE RELEASE

TREASURY

~~T

TRANSACTIONS IN DECEMBER

During December 1963, market transactions in
direct and guaranteed securities of the government for Treasury investmp.nt and other accounts
resulted in net purchases by the Treasury Department of $33,843,75 0 • 00

000

• DINS 4.M. !fEWSPAPEIS ..
J~!!I l!@t • •
B8tfL'fS or tREASlJRltS '';:.FEKLY BILL :;fFLRIN>1

II'.'

1M ,........,. ~, aDIIOIInOeC! lut evening t.hat the tender» tor
. . . .." lt1lla. one aerie. to be an additional issue of the bills da~d
.. \l1li etMr MI'1H to .,. dated 18IIUIArT 16, 196b, which were ()Uered on
...... ta. Yedenl ........ f3aake on Jam:t.ar,y 13. ~render.. _1'8 hrrited
. . . . . . .. . - , of 91....,- bills and. tor $800,000,000, 01' t.hereabouts, of
II tIIKaUa of __ ,,_
are as follows:

ae.r1..

or ACtZPrI'D

.lInIn BIDS I

91-cq l'nasVJ bills
~t,!!"!!s..AprU lOA !2f*
PriM
1M.

Approx. ~v"
Ammal Rate

t.wo _riaa of
October 17, 196),
Januq 8, were
tor $1,)00,000,000.
182-day bUl••

_•• _ ._ " _ _ __

99.109
99.100

3.,2$$
').560%

99.103

3.$4·9i

.•

1$$ of t be _...at of 91-dq bills bid tor at the low price vu accepted
. . of U. .....at at 182-dq bUls bid. far at t.he low price 'tIU accepted

TREASURY DEPARTMENT

FOR FELEASE A.M. NUBPAPERS,
January 13,
Tuesday, January 14, 1964. _
RESill,TS OF TREASTJRY t S WEEKLY BUL 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 October 17, 19
and the other series to be dated January 16, 1964, which were offered on January 8, war
ooened at the Federal Reserve Banks on January 13. Tenders were invited for $1,300,000
o~ thereabouts, of 91-day bills and for $800,000,000, or thereabouts, of 182-day bills.
The details of the two series are as follows:
RANGE OF ACCEPTED
l82-day Treasury bills
91-day Treasury bills
CONPETITIVE BIDS:
maturing April 16, 1964
maturing Julr 16, 1964
Approx. Equiv.
pprox. Equiv.
Price
Annual Rate
Price
Annual Rate
High
99.109
3.525%
98.154
Low
99.100
98.136
3.560~~
Average
98.140
99.103
3.549% !I
15% of t he amount of 9l-day bills bid for at the 101-1 price was accepted
20% of the amount of l82-day bills bid for at the low price was accepted
TJTAL TENDERS APPLlliD FOR AND ACCEPTED BY FEDERAL RESERV~ DISTRICTS:
District
Applied For
Accepted
Applied For
Accepted
$ 9u,996,000 $ 84,996,000
$ 13, 37h,000 $ 8,374,000
Boston
New York
1,562,659,000
691,167,000
1,31S,798,000
534,798,000
Philadelphia
36,317,000
21,317,000
10,295,000
5,295,000
Cleveland
41,247,000
4l,2L7,000
40,583,000
31,583,000
Richmond
16,417,000
16,417,000
4,862,000
4,862,000
Atlanta
46,610,000
40,423,000
14,618,000
13,618,000
Chicago
213,~27,000
142,930,000
192,385,000
113,585,000
st. Louis
52,509,000
46,509,000
12,818,000
10,818,000
j:inneapolis
24,725,000
21,028,000
9,268,000
7,268,000
Kansas City
47,426,000
46,041,000
17,128,000
14,928,000
Dallas
34,819,000
27,869,000
19,037,000
13,237,000
177 ,586,000
120,786,000
_
90,702,000 _ 41,802,000
San Francisco
TOTALS
$2,:3h8,741,000 $1,3 00 ,73 0 ,000!,/ $1, 140,868,000 $SOO,168,OO't) ~
Includes $326,550,000 noncompetitive tenders accepted at the average price of 99.103
£/ Includes $9l,87e,000 noncompetitive tenders accepted at the avercl.ge price of 98.140
.!/ On a coupon issue of the same length and forr the same amount invested, the return on
these bills would provide yields of 3.64%, for the 91-day bills, and 3.81%, for th
l82-~2Y 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 certifica.tes, notes, and bonds are computed in tems
of interest on the amount invested, and relate the number of days remaining in an
interest payment period to the actual number of days in the period, with semiannua
compounding if more than one coupon period is involved.

<~TATUTORY

As of

DEBT LIMITATION

Vecember 31, 1963

Washington,

Jan. 14, 1964

Secti,:'" 21 of Second Liberty ~on? Act, as amended, prov!de~ that the; face amount of o~ligations issued under authority of
Ihat Act, and the face amount of obllgauons guaranteed as to ptlnclpal and Interest by the United States (except such guaranteed
obligations as ma~ be held by the Secretary of the Treasury), :'Shall not exceed in the. aggre~ate $285,000,000 000 (Act of June
10 1951); U.S.C., tule 31, sec. 757b), outstandiOS at anyone time. For purposes of this secuon the current redemption value of
...Yobligation issued on a discount basis which is redeemable prior to maturity at the option of the holder shall be considered
as its face amount." The Act of November 26 1963 (P.L. 88-187 88th Congress) provides that during the period beginning on
December I, 1963, and ending on June 30, 1964, the above limitation shall be temporarily increased to S309,OOO 000,000. Because
of variations in the timing of revenue receipts, the public debt limit as increased by the preceding sentence i~ further increased
duough Ju-ne 29, 1964, by S6,OOO,OOO,OOO.
The following table shows the face amount of obligations outstanding and the face amount which can still be issued under
this limitation:
.
Total face amount that may be outstanding at anyone time
Outstanding obligations issued under Second Liberty Bond Act, as amended
Interest-bearing :
Treasury bills _ _ _ _ _ _ _ _

$315,000,000,000

Certificates of indebtedness _ _ _ __
Treasury notes _ _ _ _ _ _ _ _ __

$51,539,049,000
10,939,435,000
58,679,816,000

$121,158,300,000

86,43.3,160,150
48,827,039,502
1,288,302
97,748,000
2,,233,000
3,684,860,000

139,049,328,954

Bonds Treasury _ _ _ _ _ _ _ _ _ _ __
*Savings (Current redemption value) _
United States Retirement Plan bonds _
Depositary _ _ _ _ _ _ _ _ _ __
R. E. A. series _ _ _ _ _ _ _ __
Investment series _ _ _ _ _ _ __
,Certificates of Indebtedness Foreign series _ _ _ _ _ _ _ __
Foreign Currency series _ _ _ _ __

419,000,000
30,120,482

Treasury notes Foreign series _ _ _ _ _ _ _ _ __

163,1l8,258

Treasury bonds Foreign Currency series _ _ _ _ __
Treasury certificate s _ _ _ _ _ _ __
Special Funds Certificates of indebtedness _ _ __
Treasury notes _ _ _ _ _ _ _ __

7.30,183,292

6,746,850,083
2,375,051,000
34,536,451,000

Treasury bond s _ _ _ _ _ _ _ __
Total interest-bearing _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

1,342,422,032
5,012,569

43,658,352,083

305,213,415,638
346,382,369

Matured, intere s t- c eased _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Bearing no interest:
United States Savings Stamps _ _ __
Excess profit ·

.( ax

refund bonds _ _ _

Internat'l Monet a ry Fund notes _ _ _ _
Internat ' l Develop. Ass'n. notes _ _ _
Inter-American Develop. Bank note s _ _
United Nations C hildre n's Fund bonds_

53,12l,523
690,898
3,036,000,000
164,261,000
125,000,000
6,000,000
37,189,267

United Nations Special Fund bonds _ _
Total _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-:... ,_ _ _ _ __

3,h22,262,688
.308,982,060,695

Guaranteed obligations (not held by Treasury):
Interest-bearing :
Debentures: F . H.A. & DC Stad. Bds. _ _
Matured, interest-ceased _ _ _ _ _ __
Grand total outstanding _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

741,272,050
524,675

7UJ.,796,725

Balance face amount of obligations issuable under above authority

.309,72,3,857,420
5,27 6,142,580

RECONCILEMENT WITH TABLE III OF THE DAILY STATEMENT OF THE UNITED STATES TREASURY
Asof

December 31, 1963

_~~~~~~-~~~-

Gross public debt this date - -- - - - - - - - - - - - - - - - - - - - - - - Guaranteed obligations not owned bY. l,"reasury - - - - - - - - - - - - - - - - - - Total gross public debt and guaranteed obligations - - - - - - - - - - - - - - - - Deduct debt not subject to statutory limitation - - - - - - - - - - - - - - - - - - Total debt suWftt .J1Mitirl8h - - - - - ' - - - - - - - - - - - - - - - - - - - -

D-l0Q7

309,346,845,059
7UJ., 796, 725

STATUTORY DEBT LlMITATfQ)I

AsofDeeamber 31, 1963

Washin8ton. Jana

14, 1964

0'
0' 0'

Secti"n 21 of S~cond Lib~rty Rond Act, as am~nd~d, provid~s that th~ fac~ amount of obligations issued und~r authority
that Act, and the fac~ amount of obi igation s guarant~~d as to principal and int~r~st by th~ Unit~d Stat~s (~lIC~Pt such guaranteed
oblillations as ma~ b~ held by the S~cr~tary o~ th~ Tr~asury), :'Shall not ~llc~ed in th~. aggr~8ate S285,000,000d OOO (Act
June
30, 195~; li:S.C:, tltI~ 31, s~c. 757b), outstandln,. at any on~ time. For purposes of th.s section the current rc emption va)ue
any. obi Illation ISSU~? on a discount basis which is red~~mable prior to maturity at the option of the.hold~r sha.1I be c<!ns!dered
as liS face amount.
The Act of November 26 1963 (P.L. 88-187 88th Congr~ss) provid~s that durang the peflod b~glnnlnl on
Dec~m.be~ 1, 1?63, and. ~~ding on J un~ 30, 1~64, th~ abov~ limitation shall be t~mporarily incr~as~d co S309,00~,OOO,000 •• Becau.e
of variation s In th~ tlmlnll of r~v~nue r~c~lpts, th~ publtc d~bt limit as increased by the precedIng sentence IS further Increased
throullh June 29, 1964, by S6,OOO,OOO,000.
. :rh.e f?lIowing tabl~ shows the face amount of obi igations outstanding and the face amount which can still be issued under
this limltallon :
Total face amount that may be outstanding at any on~ tim~
QUlStandinll obligations issued under Second Liberty Bond Act, as amend~d
Int~rest-bearinll :
Treasury bills _ _ _ _ _ _ _ _ _

$315,000,000,000

Certificates of indebtedness
Treasury notes _ _ _ _ _ _ _ _ __
80nds Treasury _ _ _ _ _ _ _ _ _ _ __
*Savings (Current redemption value) __
United States Retirement Plan bonds _
Depositary _ _ _ _ _ _ _ _ _ __
R. E. A. series _ _ _ _ _ _ _ _ __
Investment series _ _ _ _ _ _ _ __

$51,539,049,000
10,939,435,000
58,679,816,000

$121,158,)00,000

86,413,160,150
48,827,039,502
1,288,302
97,748,000
25,233,000
3,684,860,000

139,049,328,954

Certificates of Indebtedness Foreign series _ _ _ _ _ _ _ _ __

419,000 ,000
30,120,482

Foreign Currency series _ _ _ _ __
Treasury notes Foreign series _ _ _ _ _ _ _ _ __

163,ll8,258

Treasury bonds Foreign Currency series _ _ _ _ __

7.30,183,292
5,012,569

Treasury certificates _ _ _ _ _ _ __

1,342,422,032
5,012,569

Special Funds Certificates of indebtedness _ _ _ _
Treasury notes _ _ _ _ _ _ _ _ _

6,746,850,083
2,375,051,000
34,536,451,000

Treasury bond"
Total interest-bearing _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Matured, interest-ceased _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Bearing no interest:
United Slales 5a\'ings Slamps _ _ __
Excess profit·

.(ax

refund bonds _ __

Internal'l 'Ionetary Fund nOles
Internal'l Develop. Ass'n. notes ____
Inter-American Develop. Hank nOle'> _ _
United

~ations

Children's Fund bonds

United :-.lalions Special Fund bonds _ _

53,121,523
69),898
3,036,000,000
164,261,000
125,000,000
6,000,000
37,189,267

Total
Guaranteed obligations (not beld by Treasury):

43,658,352,083

305,213,415,638

346,382,369

3,U22,262,688
308,982,060,695

Interest-bearing:

741,272,050
524,675

Debentures: F.II.A.&DC Stad. I1ds.

741,796,725

\Iatured, interest-ceased _ _ _ _ _ _
Grand total outstanding ____________________________________________________
Balance face amount of obligations issuable under above authority

RECONCILEMENT WITH TABLE I I I OF THE DAILY STATEMENT OF THE UNITED STATES TREASURY
Asof

December 31,1963

Gross public debt this date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Guaranteed obligations not owned by Treasu'ry _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Total Ilross public debt and guaranteed obligations _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Deduct debt not subject to statutory limitation - - - - - - - - - - - - - - - -_ _ __
Total debt subi ect to limit ation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _---, _ _ _ _ __

D-1097

309,346,845,059
741,796,725

j)§,

857,420

TREASURY OEPARTMENT

January 14, 1964

FOR HllEDIATE 23LEASE
'TREASuRY DECISIOn orr CAST E(OH SOIL PIP:C
u1WE::i TEE AhTIDmlPHTG AC'l'

The Treasury Department has uetenlined. that cast iron soil
pipe from Australia is being, or is likely to be, sold at less
than fair value '.fi thin the meaning of the Ant idumpinz Act.
Accordingly, this case is being referred to the United
States ':::'ariff COlilIaission for an inju:cy determination.
lJotice of the determination and of the reference of the
case to the Tariff Commission vill be published in the Federal
~\egister

The dollar value of imports received durinG 1962 ~-ras approxirr.ately $JOO,OOO.

000

TREASURY DEPARTMENT

January 14, 1964

FOR D1MEDIATE REIEASE

TREASURY DECISION ON CAST IRON SOIL PIPE
UNDER TIlE ANTIOOHPING ACT

The Treasury Department has determined that cast iron soil
pipe fron Australia is being, or is likeLy to be, sold at less
than fair value within the meaning of the N1tidumpiug Act.
AccordingLy, this case is being referred to the United
States Tariff Commission for an injury determination.
Notice of the determination and of the reference of the
case to the Tariff Commission will be published in the Federal
Register.
The dollar value of inports received durinG 1962 was approximately $100,000.

000

- 38 -

Tbe country urgently wants the tax bill -- expects
the tax bill -

and needs the tax bill.

tbe aeed i8 great, the a ••d 1s DOW.

'lbe need is clear,

- 37 -

and act1 ve 8upport for prompt paasa"e by the
Senate of H.R. 8363, substantially in the fo~
approved by tbe House, with its effective date

retroactive to January 1, 1964."

May I dare to express the hope that your organization will
join in this sentiment?
With every month of delay, we deny the American businessman

the heightened incentives in the tax bill for new and greater
inve8tment in plant and equipment.

With every month of delay,

we restrain the execution of business aDd personal expenditure
plans that only the certainty of an $11.2 billion tax cut can
provide.

With every month of delay, we hold back the full

confidence in the ecoDOm1c outlook, both long term and short

range, that the passage of the tax bill will inspire.

With

every month of delay, we deprive ourselves of added econoadc
iapetus for greater growtb in 1964 and greater assurance
against any 108. of raoaentum.

- 36 "The only -.jor Opposition to tbe peodiag
tax bill has

COllIe

from tboee who feared that.

reduction in tu rat. . might lead to IIOUDtiDg
Federal deficits.

It seems to us that io light

of your demonstrated determinatioD to Bake a
8ucceaatul attack against unnecessary spending
and to cut the Federal detici t, it would be JIIOst
difficult to oppose enactment of H.R. 8363 OD
grounds of fiscal lrr•• ponsibili ty.
con trary, prudent economics

DOW

On the

demanda more

than ever the ilDlD8diate enactment of this legislation as a necessary stimulant to the private
sector of the ecoDOIIY.
"1Ir. President, the Executive CoDUli ttee of

The BUfJiness Coui tt.. for Tax Reduction and its
more than 2,800 members pledge to you their full

- 31 It 1.

woader that oa-aanlaatioQ8 .bieh 1. .1 that the

na tional Deed 10Jr geDeral tax "duction is i-a1a te and
pr.s.iq~

but that action should be tak8ll GAl,. 11 at the

..... u..

&ddi tional expencl1 ture control stepa &CC08Ipany it.

are eocourqecl to n-eaaaiXMt their reservatioDIJ.
Aaericaa Bapkara Maociatlon is s\&Ch aa

The

or~anisatlOD.

Dr. Charla Walker, ita Executive Vice Pr••ident, 1a 8peakiDi

of Pr. .ident JobDson's 1966 Budget announcement, bad this
to say:
" • • • he has doD.e IlUCh to r8llOve the
aaJor atumbl1na block in the way of the
lDCOM tax cut.

Pr08P4tCta for eu1y

enactment 01 the peAding bill are much
i.proyed. "
TIle Pr. .ident· 8 elecisi ve action al80 IIOvecl JIr. Stuart

Saundera, Co-chalr.a& of the Buelness Committee for Tax
aeduction, to say to the President last week:

-34-

annually.

In the last three yeara the

a. .ra.. incr.... has be.n $5.7 billion
aaaually.

• •• It iacre.... were to

conti.ue at the rate eatablished in the
paat 3 y.ars, our a~nistrative budget
tor ti8cal year 1965 would amount to
$104.1 billion."

IIow, the tax cut will be accollpanied

a budget which

call. tor expenditures in fiscal 1965 -- not of $104.5 billion __
or of $101.9 billion -- or of $99.9 billion -- or even $98.9
b1ll1oD -- but of $97.9 billion, almost $1 billion below the
budget presented to Congre.. a year ago this month and a balf
billioD 1... than projected expenditures for fiscal 1964.
!bat i8 espeneli tore control in action; that 1s full performance
runai,Q1 over ot the earlier pledges that a substantial part of

tu reveaue incre..... froll expansion will be used to reduce
the budgetary deficit until balance is reached.

-33quick. ., .., of

b~1G81nl

the Dat10D to balanced budgets

and aurplueee 1a a ""oer coaai.tent with our national

.e.da

&ad ",po~ib111t1 ...

It 1. . . lonpr . .esa&17 to r.yie. in detail tbe

.t.,. toward their .xecution.

specific pled••• and

Pr••1deat Jobaaoa, 1n

.~tt1Dg

For

a budget for fiscal 1965,

1s givial ooacrete reality to the pledges that have
berete1.e beell aacle.

We who accepted aDd relied on

,lMge8 of f1.o&l r . .peasibility can

DOW

be joineel

tboae .... waat.cl to ... tbe d4MtcIa as n11 . . the "I'cla.
TIle abarp break witb tile put pattern of aub.'aati&1
pNJecMcl espeDCl1ture 1ac........ can be _\1I'8d in

&Il

uc.... t f .... the receat atat•••t of JOur on Preeidnt,
~. C~lea

Stewart, that:
". • • in 11 ya"'" feeleral adlliD1atrat1ve

1iMIdaet espeadi tun. ba.e i .....uecl by eo.
•• pel'C_t or

all

a.er_ of tl.8 bilUoD

- 31 Wi'tll .,teoti". coatrol of the ioen_ ill lO"erllMllt

expeatll tv_.
Qa

Ow:' put, fl"ODl .U'ly last year, we have repeatedly

. .pou.ed tbia eoollOaie pnap-a. .. bav1q two eleaeBta: firat,

a aw.tant:l.al ...clueti.A 1- 1 _ taxee

&Dei

rates, aad,

8eoeDd. as tbe tax cut beca.eB fully .ffective aDd the
eco~

.xpaada ia r8epoua., the allocatloll of a substantial

.... t of tile .... ult1.s rey••ue iDCr. . .es toward eliaiWlting
&

va.1 Uoaal budpt deficit.
W. did M

bacauae tbe lat.. Preeidellt ILeDDedy Ilad

spec111oall,. aacl cOII8ie'teDt17 coupled biB tax propoaals last
.,eu Wi til

OG v1 t.eDt to apendi ture coatrol ia bi. messages

liIoJ'eOye.. , both he aDC1 the Bouse of Repre.entatives

recognized and accepted tAe l"_pouibil1ty of &CCOIIPanying
tax recluCUon with expeacl1ture coatrol as the .urest and

... 31 ...

........ Ie
-

,.t

ODe . . .

tactor that bean t ....taDt1y

tile _ _ _ WI and the proprlety of Preaident JohlUlon'.

r.q....t tIl.t tile

eo.area.

take Pl'OIIpt actloa.

ft.:t ls IUs

atat_tlD tbe S'tate of the UDioa ....&1. 1aat week that
botll tM ~d:J. t... 1. . .1 18 'tbe adIIlll1atra tl.... buclptt for

ft ...l 1116 aad ~ req...t for Dew obll1&tloaa1 autborlty
would be _low t ... 1.ye1. requeated 1aat y.ar.

ao..
~duatlea

t l . . people 1&&•• beea _Williol to auppoJ't a tax

t ... ..lob they .tabt persooal1y benefit unle••

persuaded that 1 t Ie aot at tile coat of

.eu-al..

.f our aatlonal fl ...1 aDd tln.actal poettl0..
OOMe..8 1faII tbe . . . .taeat

tile fabric

Tbe basis of

of tax reduction at a ti_

wbeD

tile. . 1a a . i. .able buclpt .eflctt, folloWing on years of

defict ••
Botb yOUI'

oztgaaisattoa uel the Treasury nepartllent during

tIae put 1881 ba.. NeD 1. the fOl'efront of th08. ftO felt

and voice" the nece.al t1 of coupling the proposed tax cut

- 30 -

To be

.UN,

tbe _aey ao loet will be r.tuned to

. . . . .ad1q ew. . . 1a 'the 10l'Il of tax "1UDeIa a yeU' 1I"0Il

. . . 11 tile bill 1. e"eatually pula..

,ear 1J:Q11

DOW

But, DOt -.ay

tbat coaea 1rcN1 a tax bill tbat tIley think

- ae tbe pr. . . . t 18 pe~ant io 14 parcent.

Under the bill . .

DOW drawA. tbe wit1Uaoldiag rate would go to 16 percent

when

-ua.

bill 1& paaaeci &Ad to 14 pe.rceni next yau.

But

beea. . . a."OS oiDeI' thiqa. of the lou of ecoaoaic

aUau1ua lIhicD baa &h-e&d7 res\11 ted froa delay in the
bill, tAe Pr. .ident judpc1 it DeCM8U'7 to Droa.clen tJae

ecODOaiC iapa.c:t of

bill.

'l'hat . .ana that "_Iudl••• of whether t.e bill i8 aade
J:au-oacii ve to JUU&I"I lat, ..e"udles8 of the reduction in

tax liabilitie. for the entire year, every month that the
wi thholding rate .taya at 1 til pre•• nt 18 percent instead of

the proposed 14 percent clepri ves the econoay of the add! tional
$800 1I111ion of purchasing power.

That ia what delay is

drawins frOll the ecoDOlllY each month -

$25 a11llon a day.

$800 million a month,

That meana that each bour this bill 1s

- 28 -

ID taot, 1f all figure. are converted to a full .aployment

baa1. for purposes of coaparison, it becomes eVident that not
oDly 18 tbe 1964 stiJau1ua to the ecODOIlY frOll the Federal
buqet (baaed .alD1y on the tax prograa) three tiMs aa great
as io aDY of the last three years, it is in fact more than
$3 billion greater than 1n any other peacetime year -- if the
tax prograa 1s enacted

BOOla.

That 1s another reason why delay 1n final passage is so
1aportaDt.

There are those who excuse delay or overlook its

i.por'tance because they assume that the bill, "heD pasaed,
will be retroact1ve to January 1 of this year.

They overlook

the fact tbat .uch of the hard, tang1ble benefit of the tax
cut cannot really begin to be felt until it becomes la'll.
Oo1y wben the b111 i8 signed can the withholding rate on

all

• aces

aDd aalaries be reduced .

President Johnson has rec(8ll8nded that the bill be cba.nged
to reduce the withholding rate immediately upon passage from

- 27 -

.1'. Kdwin Dale, the di.ti_gui.bed economic corNspoadellt
.t tbe "W York Times, put it l ... t Friday:
Aa

"Deapi te tbe . .vere .peDeUac squeeze, the ...
budcet 1. atl11 highly stimulative ia its .cODa-ie
Lapact, la the vi•• of ..., private analy.ts a. well
as Adalal.tratloa ecooaa18t•• "

Thi• •tiau1ua, . . tbe article pOints out, comes mainly
fra. tbe propolled tax cut.

This 1. a rather aipifica.nt

&epeet of the ea.biDatiOD io thi. yeU". acon_ie polle1 of
.tron& _phasls
~is

eo_oaf togetber with reduction ia tdes.

budget wll1 cut the deficit 1. half -- fram tbis year'.

$10 bl1110a to just wadel' $6 billioa for 1"6.

Yet, despite

tbi • •trOGK bolddowa in lovernaeat speDdial, tbe aet fiscal
stiJau1wa to tbe eoooo., 18 1964 froa

the

Federal 10VerDaeDt,

'U attaul ... to job. and iDcc:ae, to production

and to profits,

will be createI' tbaD io any other peacetiae ,ear in the bistory

of tbe UDi'-d 8tat...

- 26 -

point &ad I would like to read from that portion of his

.p••ch:
tt

... "" ..

• • • as Wl4ap • tanc1

now the prospect of

tax zoeGucUon haa been so thorouply built iato

u.pectatioDS and plamUJlK and. to aoae extent
alJlo ia10 the fiD&AC1al commitments of individuals
aDd

buainea... that it would be a_tousl, de-

flat10aary to call it off. tt

I would add that it i& an equally serious restraint on
the 8COIlOItJ to put i t off.
1'ber8 18 general qQ.ent aIIOll& &l. . t all 8COnoa1ats

aDd bua1ues8 and 11DaDC1al leaders on that point.
18 DOt Jaa.rd to find .i.ataq1b~.

The reason

and it ia not onlY psychological or

It 18 bard caab -

8ix to eight hundred JI.1ll1oD

dollaz'a wortb of it that is beini wi thheld from taxpayers and

put ioto ~ Tr_ury each aoAth "the tax bi 11 is QOt eJlacteci.

- 26 -

"UaUl tlae bill 18 aip.ed its illv. . t.ent

lac.atly. . cannot be d....d certain and tbe
91 thhelcl1ng

rate

C&DDOt

be reducecl awl the

mat 4eae.poa ancI devastatiq tJUq you can do

AA1 bua1De811.111Ul 111 Aaerica 1.

keep hi.

la doubt aACl to keep IUa ........las on what our

tax pollcy ls ...
Tber. 1. broad

aar....nt oa the

daaage and the threat

lAberent 11l further delay, ill fUl"thezo ha.gliq, 1. futher
, . .lag aac1 fwa1q.

A recent speech by Dr. Raymond J. Saulnier,

for.er Cha1nI&A of President E1aeAho••r's Couooil of EcollOldc

jdviMn, put the situation ill rea.li.tic terma.

Dl:. 8au1A1er polata out, be bas serious reaerya tiona about

a auaber of . .peets of the

~DistratloD·.

la a apeeca laat oototaer be .eat
111 detail.

TAeA

Oil

ecouo.ic policy.

to d.eacr1be thoSe doubts

be ~ what 1 coaa1der a very iaporta..ui

- 14 "lbe 'tax P"&"&II haa beco.e tile leading paycholog1cal
fao'tOM' 1a 'tile world of b\IIJi_ ud finance.

It is vi."ed

. . the to_ _ to_ for _.taioed expaulon aad the el. . .nt

prom...

f . the loag

t .... future.

Suat. ._ 8xpau1oQ and

COIl8\1Mr

INyI ..S 1. a luge . . .un reflect confidence in the

future.

Expectatioaa of tbe eaact.ent of the tax program

baYe .,..,.. a built-in factor ill the aspirations of the

buaioeea &ad tiDADel.1 world and a basia for bop.. for
ooaUau.ecl pod t 1 _ by 'the

COIUlu.er.

t'o fl'Ulltrate thoee

eJqlechti_ by delay a.Dd doubta .. to the future puaage
o~

, ... bill . .taila ..-10_ eco.-1c risks that flow troa

dilliaitllleel _fidenee aad uncertainty •

. . bua1n. . . .a, ....y of you will agree wholeheartedly
w1 til .....1 . .ot JobD8OJl'. COMt8nt in hi. State of the UaiOD

....... tJaat, aacl agaiD I quote:

tid.

_i_ -

- 23 -

to aDOther ••ually current aspect of

CODIJeIUIUII 'that backa up a prollpt enactment of the tax

bill -

the pDeral agr_nt that fa1lure or delay to pass

1 twill NtUd the upaDllion of the economy.

".. year_nd predict10na of the economsts, business
aDd acadea1c, tbe commentaries of the trained observers,

the ata:t_nts of leading businessmen i . aDDual

reports, in news articles, in aarket aAalyaes -

.... all 1ncener&1 agre. . .nt

for ,be

in fOl"ll&l forecasts,

011

one point -

tile outlook

would be drastically differeat without a tax

cut thaD it would be wi th one.

Forecasts of groa8 national

product 1n 1964, Dowever optimistiC, invariably give two
figures
bill.

a higher one assuaing an early passage of tbe tax

Bven.ore telling, for investment purposes, tbe outlook

for the lot 8ix .oaths of 1964 and 1965 is said, by many, to
depend upon the early enactment of the tax bill.

- 22 -

In 1864 alone corporate taxes will be reduced by
$1-112 billion.

In 1965 corporate taxes .ill be reduced by

$2-1/3 billion.
That _aDII that the total .ffect of the Inveataent tax

credit, depreciation reform and corporate rate reduction would
be to reduce business tax.. by about $5 billion a year plus

the individual rat. reductions going to unincorporated
buainea_D.

In other words, direct busin.s incentives will

bave recei veel about 40 percent of the total tax reductioD

provided for under these three tax progr_.
It has been .stiaated that tbe total effect of this
prop'am will be to increase the profl tabili ty of new investment
in a tea-year asset, for exaaple, by more than 35 percent.

thiok you will agree that this is indeed a significant 8timulus

to DeW investment and one which should be brought into full play

without delay.

- 21 -

balaocecl b\Klpt Without ald._ina

Oil

our Datioaal DMCiB.

It lIbould not be .\1I1ll'i8ias that increuine iav_'taIeat
baa beaD a .aJor part of the problem to which tax and

ecoao.1c polloI' baa been ci1rected for the put .8.8I'al y.ars.
1ba~

1. wily top priority .... pM. to the iD.e.tMDt credit

uad to depl'eCiatioa libu'a11aatioa.

rat.

~uctiOD

1. & .aJor part of tbe btll DO. before the

SeDate F1aance Co_1 tt.. &Ad
~.~t

That i. why corporate

ia the

iDv_~at

wily tbe Tr.uUZ'Y welcoaee the

credit; that will COM with tbe

p&"Ovla1oll eliaiaatiDC the require. . .t that assets which
qual! II f . the crecii t _WIt be placecl on the booka for
clepZ'_ia~10.

at oaly 93 perceat of their actual cc.t.

For

tAl. bill 1s a COIIPl_ntary part of a pro".... cleeipecl to

Maia1.. tile oppol"tuni ties of our fne-aarket ecollOlQ'.

iDCl"eaalac tbe l"ate of profit after tax. . tbis bill will help
$0

.ake tke .oat of the investment incentives which have been

lmportaot in developing tho competitive vitality

AlaericaD illClWltry.

- 20 As tbe noted co_ntator on ecoDOIIic affaire, IIarolcl Dorsey,

recently IlOted: "Increuiq efficiency ift procluat1oa &Del
cIlatrlbution is the very heart of standard of linDS growth."
UD1_

we get a substantial iDOre... in inYeSt.ent,

OUl'

8C01lOIIY Will not develop the ci1Dald.c ezpansioaary .,..ntull ••
DMCi to keep doll_tic invest_nt funds at bou and attract

foreiga lav. . t.ent 1n greate.. quantity fro. abroad.
Unl. . . .e get a substantial incr.... in in.... t.eDt, we

aren't going to step up productive effiei.acy to tbe poiDt
wbere . . can .ue sip1ticaat gal_ in ...tlns aad o ••rcoming

the lacreaalng challenge fro. foreign produc.... in oa.petitlve

.ark.ta around the world.
Un1• • • • get

8.Jl

increase In iftv••tMDt, we U8o't goi.Qg

to step up the exp&ll8ioo of our ecoDOllY enough, .e u.n't

g01Dg

to iacr.... its rate of growth eDough, IUld we won't .... fast

enougb toward the t1me when .e can plan and acco.pli.h a

- 19 -

of ne. 1av•• t.ent 18 the aost effective way to .ake .are
attractive tbe investment decisions which are not beinK taken
today.

It 1. the .oat effective way to aake today's aarpnal

project the acceptable venture of tOllOrrow.

It is the aost

effective way to maximize the benefits of tbe tremendous

tecluaolosical, educatloDal, and hUllall resourc. . of the UBi ted

Statea.

As De.

techD1ques and no. products are developed

aDd aa new IlU'kets are opened up, new deIIaAcl rill be created,

JUt. lllvest_llt will be fostered,

jobs will be available

that would Dever have been available otherwise.
III ahort, unless we set a substantial increase in inv.stment,

we UGa' t g0101 to cre.t. the jobs we Deed to reduce unemployraen t,
'the joba .e need to keep in phase with autoaatioD or the jobs
we oeed to provide product! ve work for the huge number of young

people who will sbortly enter the Labor Force.
ADd it is important that .e do DOt sacrifice increasing
efficiency to

0\11'

failure to meet the unemployment problea.

- 18 -

iaveatment capital. ot sale8, or of the corporate portion
of GrOll. Xational Product."

They presented to the Committee

a coapariaoo of the figures since 1907 on the three major
forees 1D economic growth -- government expenditures, consumer
demand and priVate inveatment -- to indicate that the 1Dvest. .nt lag was playing a major role in

the failure of the economy

to move cloaer to full employment.
The.e figures indicated that from 1907 to 1862, in real
teras, lederal purchases of goods and services rose more than
13

percent, total national output went up more than 16 percent,

consumer expenditures went up more than 17 percent, state
and local government purchases went up 28 percent, but plant
and equipment spending declined by more than one percent.
One of the most important aspects of creating a sustained
economic expansion is the need to utilize the fruits of new
technology in the torm 01 Dew products or the adaptation of
existing products to new markets.

Increasing the profitability

- 17 That 1a why .e iaclucled as the 808t iaportant part of
the ae.enue Act of 1962 a. provision setting up a .even

perceat tax crecU t for new investment.

'!bat i8 why .e

hut.oed to coaplete in that au. year a thorough revision

of depreciation guidelinH and procedures.

'lbese two .uures

tosetber reduced tax revenues from business

$2-1/2 bil1ioD

a year increasing profi tabili t1 and cash flo'll and redUCing the

period of risk.

Together they provided a powerful stimulus

to illCreased invea'blent.

But clearly tHY 1Iere not enough.

tb.e ecODOllY of the Un! ted States still is not .:>ving rapidly
eaoU&b toward full eaployaent 1 and inadequate invutment 1s
a .aJor reason behind our lagging growth and stubborn
uneaploy_n t.
lfot 10Da ago Henry 1'0'" II and stuart T. Saunders,

Co-chairaen of the Busineas Committee for Tax aeduction, told

"corporate profi t8
after tax. . b.ave come down, wIletber measured as a percent of

- 16 c\IIItOMn and 110ft proflte ancl iaC4tntlYe. witb the ~ucer8
aDel

aupp l1en.
That 1s why 1 t includes a reduction 1a 1Dd1 vidual tax

rat_ tbat will leave ,8.9 billion witb the cuato.en who
Will speDd about t8 bi llioa of that -.oun t
COD8~tiOll.

Oil

addi tioul

Th. . . expelld1 tur. will s.t 14 _tiOD

ta.

fud.liar ecoDOll1c proce_ 10 whicll lIO_y circulate. aDei
ult1_tely lacr..... CODSu.er .peadias by ••veral t i _ the

&IIOUDt of the ial t1al tax cut.
rise

10 COll811M1' dHall4 -

for industry -

That atl'ODa aDel _.taia84

aDd ttaua In aarketa &Del prot1 ta

wi 11 COJIple_t the direct 11lC8Dt1 ve. to

10. . . t..-t.

But tboee a.dd! tional and direct iDcent1 ves -- increas1ng
the rate of return after taxes aDd reducing the period of
rlllk _

II\I8t be there l t savlngs and Hlf-pnel'ated cash are

to be put to work la expaDCl.1ag old bUllin. . . . . aad creatiDi

- IS I. 1118

&Qd

1867, .1"eo out 01 evel7

ODe

hUllClntcl dollars

ot to~1 aat1oD&1 output . . . devoted to fixeel busi .....
1a. . .t.eat.

t i _ tbat U . the 11. . . baa talla to about

8 i _ 1811 the rate 01 tacre... 11l our atock

ai. . _llu'll.

1. bua1_ plaat aacl .qu1. . . .t has r1Ha by 1 _ tbaa two

.......t. a year.
tft •• tlaat. I'ate.

INri . . tbe t1nt poet.... clec ..... lt ....

It abou.lel .Ul"pI1._

DO ODe

tbat ttae proportion

of 0\1&' Melll...,. aDd . .1I1. . . .t OY'" taD yean old. baa 11.. . .

alal'lllac1y_

nat ....

.....?

Daere ....

aut tbey .boulcl Dot

lac1ude a Withdl'a.al froa our re.poll81bilitlM • • •bartog in
Free Iorld aecuri ty anel elevelos-ent because our econoa1c prospects
DO

loa..- attl"act 1a...tMllt troll capital

a~4 01" OUl"

oo.pet1ti •• efflcieacy

IIO\II"C8.

at 110M &Dd

longer .aabl. .

. .lI1ev8 equilibria. 1D our balaDCe 01 iateraatioaal paJMDu.
!be tax bill would be1P. l_adiately aad d1nctl,. to Met
~ probl. . . by

leaviag more spending money with the

- 14 ~bAolol1cal

pel'CeDt

advance, to reduce unemployment from the six

it bas averaged for over five years.

fte tu cut i . the fint order of business in Meting
tile UDe.plo,..nt probl...

Otber coapleaentary _asures

addreB8ed to structural faults are highly desirable.

But it

1s Ul'patl,. DeC_ary to try to attack uneaployment througb
a .or. rapldly expanding, job creating, private

econ~.

Otherwi •• we will reap the harvest of _sive government
spead1l18, spread-tile-work sch.... and a resistance to

lacr..."

productivity tbat spells slower growth and lesser

ea.petlttve .fflet.oey.
Idl. and obSolete capacity i8 still holding back the floodtide of inveat.ent in modernization and expans10n the nation
bas 80 long needed.

Well over ten percent of our overall

laduatrlal capacity continues idle despite improving rates
of utllization early in the expansion.

- 13 before &Del aft... tax.. aad countle.. other indice. cauaecl
~

aatioaal dealre for the tax bill to abate one whit.

I Ddee4 ,

0 ..

of the inter•• tiq aspects of the co.a.us is

tlaat oOliparatiY. prosperity Aaa not cauaed it to fall apart.

8111ply because the probl_ to which it 1. addre••ed are

atlll yery IRIOh wi til
tlae7

\18.

There 18 a realisation that, ual.s

are solved tlu"oup a bealthy, dynaa1c, private ecoDOllY,

otller aoluti0D8 <1•• tructive of our national

fwa-d.

.trea~h

will be

COUicle.. a fe. exampl...

U..-plo,...t 100.s as an iacreas1Dg threat.

True. our

ecODoa.J is pI'oduciag .ore tbaD a 11111100 new jobs a year.

But 1. t 18A t t ellOU6fh.

Wa Aeed f1ve 1I111ioo adcli tlonal jobs

t.. ..xt fe. ,ears to meet tbe rapidly expanding youth

fol'c. that 18 pour1.q iato the labor market 1n increasing

A'-heJt:i, to proYicie opportUA1 ties for those idled

- 12 -

Taa- 1....... auppuoti •• the taa bill, .,eU1aa tor
eeo~o

....1"10. . . . . ita 8Jl&CtM_t

DOW

becauae, out of

tlaei.. experience. th87 belle"e tbe 1''''11tiag tax structure

will _ i q .on Jo..

w._.

_larl., prof1 ta. coaauapt10D

aDd 1.veat.eat, with eventually greater Federal revenues

laadequate
d ••• Dd aDd relatiye price stabl11 ty 18 tbe ideal ti_ to
~

tbe

~U&1Dta

which War-tiM rate acbedulu 111p084tCl

W Iaold bac* -.ceaaiY. c&..aad &ad. lDflat10n.
UDder •
fMU'

Thea. rat. . ,

Ia1pl, cU.f.....' 81tuatlO1l, DOW co88tl tute a clrac on

pn.vate 8C08OIQ' wIalcll eye&" tipteaa aa a ri810& .taDClard

01 11vi. . PUg .1acreaslag 1111110_ i_ ever bigher bracketa.

Ib.i.. reduCtl..

DOW

would

rei....

laber.Dt espaa.loDAr1 forces

1. CMII" .nat pl"l "ate l18.1"ut ecOAOllY.
~ baa

tile euphoria of a record breaking 1963 in gross

Datlonal product, industrial production, employment, profits

- 11 -

Aod ,et, althou~h prQ&r8ssive and forward-looking in it.
purp088, this consensus is traditional in its choice of method.
I~

repreaeata a natural national preference for expansion

tbrough our free aaarket economy, rather than through a. maesive
incre.... in lovernaent expenditures.

The tax bill and the

ratiooale 8upporting it would attaulate the

ecoo~

at the

outset by placing increased purcha.sing poyIer in tbe hands of
private consumers, by offering more incentives to iocreased

earDin,s and investJlleut, a.nd by encouraging the fullest
exercise

of private initiative.

This expansion of demand

and harnesaing of incentives through a program of tax reduction
and eevi810D would be coupled with demonstrable prudence
and frugality 1n lederal expenditures.
For
fro.
of

the lang pull, this program would begin to lift

our private enterprise ecooomy the repressive weight
high tax rates on people and business at all levels of

iDCa.e, placed there over the last 30 years in emergency and
war-time and allowed to become fixed.

- 9 -

Tbi. ,.,,-~rt fra. diverae sectors
1. all tJae aore r_rkable

Whell ODe

and pOiata of view

cousiders that the tax

bill i. the .oat 8igDlfie&at piece of ecoaoaic lellalatloD
io tbe 1. ., 16 ,ears.

ladeed.

it 18 difficult to recall an

laataA08 ill the Datioa'. peace-tt.. history when its economic
brai•• aad leadership fraa all sectors of the pr1vate oo.aunity
bave beea

ill

such accord on a key ecooa.ic policy as that which

aupports tbe proapt eoactaeot

of the propoeed Revenue Act of

181".

Past failure. to do aDytblDI about the general coaplaint
coaceraiDK the repre.sive welght of

taxes on tbe national ecooGaY

baye beea explained by the stat_nt that:

.y.t_

"The existing tax

perslBts, not ,,-cau.. ... a.re agreed in support of

it J

but because . . are unable to agr.. on how to chaoge it."
Finally, thl. loa-jaDl on national tax policy has been

broke..

A aeaD1n.gful national consensus has developed on

~.a of alan1ficant change.

take a. atep forwar4.

a.ll

A clear opportunity exists to

The tiae 1s DOW.

- 8 -

National Coal Association (see "Coal News" of September 13);
American Retail Federation (R.998);
American Textile Manufacturers Institute (R.958);
Electronics Industries Association (R.2672);
Investment Bankers Association of America (R.2509);
Financial Executives Institute (R.1915);
National Farmers Union (R.796);
Americans for Democratic Action (R.793);
Council of State Chambers of Commerce (R.935);
Associated Industries of Alabama (R.132l);
Chicago Association of Commerce and Industry (R.I016);
Illinois State Chamber of Commerce (R.1437);
American Federation of Musicians, AFL-CIO (R.2526);
Government Employees Council, AFL-CIO (R.2543), and
International Union of Electrical, Radio and Machine
Workers (R. 2627).

- 7 -

Xatioaal Association of 8aall Business Investment
CoIIpan1. .

(R.155l) i

Xational Asaociatlon of Home Builders (R.1983);
I1ational Msociatlon of Real Estate Boards (R.2283);
National lAague of Insured Savings Associations (see
letter of Sept. .ber 20 reporting on national poll of meabership);
~ricaa

Ltfe Convention, Life Insurance Conference, and

Lite IJUUlraDCe Association of America (R. 951) ;
Xational Association of Retail Grocers (see telegram
of Sept••ber 23);
U. S. Wholesale Grocers AssOCiation, Inc. <see telegram

ot Septeaber 23);
AsSOCiated Retail Bakers of Allerica (R.257l and wire of
8ep teaber 2");

••tional Food Brokers Association (wire of September 24);
Xational Machine Tool Builders Association (see press
release of September 19);

- 6 -

enactment ot the tax bill.
-- A group of over 400 leading academic economists

at 43 -.jor college. and universities who presented
their .upport ot the tax measure in a jOint state"Dt to the Senate Pinance Committee.
--

Both ot the leading permanent, private

organizations speaking for business and labor, the
U. 8. Chamber ot Commerce speaking for bUSiness,

and the AFL-CIO speaking tor labor, so often on
opposite sides, support the enactment of the tax bill.

Many other organizations prominent in the economy have
supported the enactment of the bill in communications to the
Congr... and pre.s and in appearances before the Senate Finance
COmmittee, as noted below:
The National Small Business Association (telegram of

September 23);
Xational Pederation of Independent Business (R.1767);

- 5 -

Th. . . .tat...nt. of basic support for the bill despite
individual difference. c ... from such varied groups as:
-

The Busin... Coaai tt.. for Tax Reduction.

a teIipor&ry,

nonpartisan body organized in April

of lut year, which has brought together over
2,800 of tbe nation'. leading businessmen and

bankers in a truly reaarkable individual
expression of their belief that the Congress
sbould enact during the present session net
reductions of corporate and individual taxes
totaling at least $10 billion.

The Citizens Committee for Tax Reduction

aad Revi.ion in 1963, wbich has brought together

in a

CODS.DaUB

45 nationally recognized leaders

of labor, ...11 busine.s, agriculture, hoUSing,

education and welfare groups, who have reached

- .. aubataatial top-to-bottOll cut.. atapel ill two yeara. i8 both
corporate aDd iDd1"idual tax rat.. wbicb, wileD tile bill ia
fully effective, would leave 1ft tbe private ecOaa.1 upwards
01 $11 billion ~re each year than under exlatina rates.

Duria. the BoWIe

p . . .age of tbe tax bill tbere were

i~r...lve

au.ber of endors...ata of the bill aDd its general

princ!pl..

by a broad

croea-aectlon of orgaaizations representing

thos. wbo are acti vel, engaged ia the practical
workiap of the Merle... ecODOllY.

~ua111

day

i . .re•• ive

day

baa been

the cODai.teat pattern of teatl.oay before tbe Senate Finance
Co.a1tt. . of those wita..... who spoke in a. representative

voice tor .any of the iaportaat organizatioDB that .ake up our
private ecoao.y.

Altbough tbeBe repreae.tativeB bad changes

to 8uc,eet, wheD questioned tbe, II&de it clear that if their
rec~dations

were not followed. they would 8upport the bill

... it p_ed the Bode.

- 3 -

leaialattYe del1beratioaa have been carefully observed.

But, beyond that, the very emergence of the national
couen8ua on the tax bill is itself persuasive that the
Pres1dent'. t1ming proposal is right.

For it reflects the

people'. wlll and we do live in a representative democracy.
There Is clear and overwhelming support among the people
at larp for this proposal.

It is strongly supported by

bus1n8SB leaders of the country, the leaders of labor, and
fiDallCial aDd economic speCialists in all walks of life.
1s

regional Jlioori ty.

There

People in the North, South, West and

Baat are for the early adoption by the Congress of a tax measure
leaerally similar to that which passed the House in Sept••ber.
This 80lid national conviction has been shared by two
PreSidents, tbe House of Representatives and over forty state
Governors; namely, that the national interest will be served by
the early enactment of a tax bill -- a measure that includes

- :I ~lde.t JOhg8OD 1. bia State 01 to. UnioD . . . .age

iave Illa au.a- 'to 'tbe q1l88~iOD 01 the tiai.og of t u t u

o"t by aa,ias: "I tlaerefore urp tile Collgreaa to take final
aoUoa

thi. bill by tile first of FebI'llarY."

ToaiCbt I propose to . . .hle . . . "peete of tbe c\II'rent
8i tuatiOll Wb1cll .uppcN't tbe Preaiclelat 'a tilling proposal.

ftnt of all,

ta.

:1aauea have _ _ debated ill vo1U11inous

_tail 1n Uae oontext of coacrete aad apecific prGpoaala _de
by 'Uae Adaia18u&tioD a

,..0'

ap.

Exte.ive public heuinge

Myebee. be1d iD botll BoWl_ aad a specific bi 11 pused by the

. . . . of Representative. baa bee. ill the polio domain aiaee
. . ....-...

fte ..elated budc.tarl suicleliDeil wta1cb precletel'll1ne,

1. . .1 ... aa tile beCutive Braacb CaD clo BO, the level of government
ezpeacl1tve. throuP tbe period encl1ag June 30, 1960. the period
..... 't.be pl'O~d tu ch..... bee. . . effective, bave been fixed.
~

pur.se .tria.. for tbe loncer term future are firmly in the

hands

of Congr....

All the prerequisites for full and fair

'!'R?~.:·):jin';FPARTMfNT

Washington

FOR RELF.ASE: A.~o ND'vSPAPERS
WEDNESDAY, JANUARY 1$, 1964

RDAlUCS 01' THE HONORABLE HENRY H. FOWLER

UNDER SECRETAllY OJ' 'mE TREASURY, BEFORE '
...... MM:IllDBY AND ALLI.ID PSODUCTS IIfSTlTUTI:

THE STATLER HILTON HOTEL, TUESDAY

JARUARY 14, 1964, 7:30 P.W., EST'

1'IUI TIIUIfG .0., TID TAX CUT

I sup,..e 1 should take
tba t " Q In people 10 this

c~.at

1"00II

satlstaction in the fact
ar. actual17 oPPOIIeCl to

til. AcIa1AisuaUOD'. tax prop-. . BOW before the SeDate Finance

...ld baye 1elt

oDllcat1oa ••eo before BUCR aD 1010r. .d

aucu...ce . . tb1. oae to .... the case

aloae

TocIa)"

fo~

a tax cut pZ'oCl"aJa

_eral 11••• 01 t.tae Bouae-paa••ca tax bill.
taat 1s

110

lo....~ aece.suy.

INI"lag tb. past year

ezp&lld1og COoa.lUIU a.oaa all groupe 01 OUl' 8oci.t7Aaa

oreated .UPPOl"t 101" tbe propoaeci tax pro~. . to such a des..ee
~t

tber. 18 yery little Ol"gaolsed opposition to it remaining.

To .,. aure tlael"e are 8t11l diff.naces in details, but the

re.l ....t108 1s DOW no loager why or ~ we should have a tax

TREASURY DEPARTMENT
Washington
FOR RELEASE A.M. NEWSPAPERS
WEDNESDAY, JANUARY 15, 1964
REMARKS OF THE HONORABLE HENRY H. FOWLER,
UNDER SECRETARY OF THE TREASURY,
BEFORE
THE MACHINERY AND ALLIED PRODUCTS INSTITUTE,
THE STATLER-HILTON HOTEL, WASHINGTON, D. C.,
TUESDAY, JANUARY 14, 1964, 7:30 P. M., EST.
THE TIMING OF THE TAX CUT
I suppose I should take great satisfaction in the fact that
very few people in this room are actually opposed to the
Administration's tax program now before the Senate Finance Committee.
Ten months, six months, even three months ago, I would have felt an
obligation even before such an informed audience as this one to
make the case for a tax cut program along the general lines of the
House-passed tax bill.
Today, that is no longer necessary. During the past year an
expanding consensus among all groups of our society has created
support for the proposed tax program to such a degree that there is
very little organized opposition to it remaining. To be sure there
are still differences in details, but the real question is now no
longer why or how we should have a tax cut but simply when.
President Johnson in his State of the Union Message gave his
answer to the question of the timing of the tax cut by saying:
"I therefore urge the Congress to take final action on this bill
by the first of February."
Tonight I propose to examine some aspects of the current
situation which support the President's timing proposal.
First of all, the issues have been ~ebated in voluminous detail
in the context of concrete and specific proposals made by the
Administration a year ago. Extensive public hearings have been
held in both Houses and a specific bill passed by the House of
Representatives has been in the public domain since September. The
related budgetary guidelines which predetermine, insofar as the
Executive Branch can do so, the level of government expenditures
D-I098

- 2 -

through the period ending June 30, 1965, the period when the
proposed tax changes b~come effective, have been fixed. The purse
strings for the longer term future are firmly in the hands of
Congress. All the prerequisites for full and fair legislative
deliberations have been carefully observed.
But, beyond that, the very emergence of the national consensus
on the tax bill is itself persuasive that the President's timing
proposal is right. For it reflects the people's will and we do
live in a representative democracy.
There is clear and overwhelming support among the people at
large for this proposal. It is strongly supported by business
leaders of the country, the leaders of labor, and financial and
economic specialists in all walks of life .. There is no regional
minority. People in the North, South, West and East are for the
early adoption by the Congress of a tax measure generally similar
to that which passed the House in September. This solid national
conviction has been shared by two Presidents, the House of
Representatives and over forty State Governors; namely, that the
national interest will be served by the early enactment of a tax
bill -- a measure that includes substantial top-to-bottom cuts,
staged in two years, in both corporate and individual tax rates
which, when the bill is fully effective, would leave in the private
economy upvJards of $11 billion more each year than under existing
rates.
During the House passage of the tax bill there were an
impressive number of endorsements of the bill and its general
principles by a broad cross-section of organizations representing
those who are actively engaged in the practical day to day workings
of the American economy. Equally impressive has been the
consistent pattern of testimony before the Senate Finance Committee
of those witnesses who spoke in a representative voice for many of
the important organizations that make up our private economy.
Although these representatives had changes to suggest, when
questioned they made it clear that if their recommendations were
not followed, they would support the bill as it passed the House.
These statements of basic support for the bill despite
individual differences came from such varied groups as:
The Business Committee for Tax Reduction,
a temporary, nonpartisan body organized in April
of last year, which has brought together over
2,800 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

- 3 -

corporate and individual taxes totaling at
least $10 billion.
The Citizens Committee for Tax Reduction
and Revision in 1963, which has brought together
in a consensus 45 nationally recognized leaders
of labor, small business, agriculture, housing,
education and welfare groups, who have reached
common agreement on the need for the prompt
enactment of the tax bill.
A group of over 400 leading academic

economists at 43 major colleges and universities
who presented their support of the tax measure in
a joint statement to the Senate Finance Committee.
Both of the leading permanent, private
organizations speaking for business and labor,
the U. S. Chamber of Commerce speaking for
business, and the AFL-CIG speaking for labor, so
often on opposite sides, support the enactment of
the tax bill.
Many other organizations prominent in the economy have
supported the enactment of the bill in communications to the
Congress and press and in appearances before the Senate Finance
Committee, as noted below:
The National Small Business Association
(telegram of September 23);
National Federation of Independent Business
(R.1767);
National Association of Small Business
Investment Companies (R.1551);
National Association of Home Builders (R.1983);
National Association of Real Estate Boards (R.2283);
National League of Insured Savings Associations
(see letter of September 20 reporting on national
poll of membership);
American Life Convention, Life Insurance
Conference, and Life Insurance Association of America
(R.951);

- 4 National Association of Retail Grocers
(see telegram of September 23);
U. S. Wholesale Grocers Association, Inc.
(see telegram of September 23);
Associated Retail Bakers of America (R.257l)
and wire of September 24);
National Food Brokers Association (wire of
September 24);
National Machine Tool Builders Association
(see press release of September 19);
National Coal Association (see "Coal News" of
September 13);
American Retail Federation (R.998);
American Textile Manufacturers Institute (R.958);
Electronics Industries Association (R.2672);
Investment Bankers Association of America (R.2509);
Financial Executives Institute (R.19l5);
National Farmers Union (R.796);
Americans for Democratic Action (R.793);
Council

of State Chambers of Commerce (R.935);

Associated Industries of Alabama (R.132l);
Chicago Association of Commerce and Industry (R.1016);
Illinois State Chamber of Commerce (R.1437);
American Federation of Musicians, AFL-CIO (R.2526);
Government Employees Council, AFL-CIO (R.2543), and
International Union of Electrical, Radio and
Machine Workers (R.2627).

- 5 -

This support from diverse sectors and points of view is all
the more remarkable when one considers that the tax bill is the
most significant piece of economic legislation in the last 15 years.
Indeed, it is difficult to recall an instance in the nation's
peace-time history when its economic brains and leadership from all
sectors of the private community have been in such accord on a key
economic policy as that which supports the prompt enactment of the
proposed Revenue Act of 1964.
Past failures to do anything about the general complaint
concerning the repressive weight of taxes on the national economy
have been explained' by the statement that: "The existing tax
system persists, not because we are agreed in support of it, but
because we are unable to agree on how to change it."
Finally, this log-jam on national tax policy has been broken.
A meaningful national consensus has developed on an area of
significant change. A clear opportunity exists to take a step
forward. The time is now.
Apart from the very existence of this consensus, the nature
of its rationale also supports decisive action now. For it is
not action taken on the spur of the moment to take care of a
passing or temporary situation. This is no "quickie" tax cut.
It is action responsive to a long-felt need, long overdue -a structural change of a considered and permanent nature. Nor
has this tax program been advanced on the traditional argument
supporting tax reduction, namely, that every taxpayer is entitled
to retain from the tax collector a larger share of his earnings,
regardless of the public needs.
This support of the tax bill expresses a deep sense of
national purpose -- a determination to move the country forward
to greater economic strength, vitality, growth and effectiveness.
It reflects a desire to do away promptly with idle manpower and
unused or obsolete capacities, inadequate demand and investment,
a succession of substantial budgetary deficits and imbalances
in our international payments -- which have persisted since 1957.
And yet, although progressive and forward-looking in its
purpose, this consensus is traditional in its choice of method.
It represents a natural national preference for expansion through
our free market economy, rather than through a massive increase
in government expenditures. The tax bill and the rationale
supporting it would stimulate the economy at the outset by placing
increased purchasing power in the hands of private consumers, by
offering more incentives to increased earnings and investment,

- 6 -

and by encouraging the fullest exercise of private initiative.
This expansion of demand and harnessing of incentives through a
program of tax reduction and revision would be coupled with
demonstrable prudence and frugality in Federal expenditures.
For the long pull, this program would begin to lift from our
private enterprise economy the repressive weight of high tax
rates on people and business at all levels of income, placed
there over the last 30 years in emergency and war-time and
allowed to become fixed.
These leaders supporting the tax bill, speaking for economic
America, seek its enactment now because, out of their experience,
they believe the resulting tax structure will bring more jobs,
wages, salaries, profits, consumption and investment, with
eventually greater Federal revenues than would be true of the
existing system.
They believe this time of unused manpower, inadequate demand
and relative price stability is the ideal time to reduce the
constraints which war-time rate schedules imposed to hold back
excessive demand and inflation. These rates, under a highly
different situation, now constitute a drag on our private economy
which ever tightens as a rising standard of living puts
increasing millions in ever higher brackets. Their reduction now
would release inherent expansionary forces in our great private
market economy.
Nor has the euphoria of a record breaking 1963 in gross
national product, industrial production, employment, profits
before and after taxes and countless other indices caused the
national desire for the tax bill to abate one whit. Indeed, one
of the interesting aspects of the consensus is that comparative
prosperity has not caused it to fall part.
Why?
Simply because the problems to which it is addressed are
still very much with us. There is a realization that, unless
they are solved through a healthy, dynamic, private economy, other
solutions destructive of our national strength will be forged.
Consider a few examples.

- 7 Unemployment looms as an increasing threat. True, our
economy is producing more than a million new jobs a year. But
it isn't enough. We need five million additional jobs in the next
few years to meet the rapidly expanding youth force that is pouring
into the labor market in increasing numbers, to provide opportunities
for those idled by technological advance, to reduce unemployment
from the six percent it has averaged for over five years.
The tax cut is the first order of business in meeting the
unemployment problem. Other complementary measures addressed
to structural faults are highly desirable. But it is urgently
necessary to try to attack unemployment through a more rapidly
expanding, job creating, private economy. Otherwise we will reap
the harvest of massive government spending, spread-the-work
schemes and a resistance to increased productivity that spells
slower growth and lesser competitive efficiency.
Idle and obsolete capacity is still holding back the floodtide of investment in modernization and expansion the nation
has so long needed. Well over ten percent of our overall
industrial capacity continues idle despite improving rates of
utilization early in the expansion.
In 1956 and 1957, eleven out of everyone hundred dollars
of total national output was devoted to fixed business investment.
Since that time the figure has fallen to about nine dollars.
Since 1957 the rate of increase in our stock in business plant
and equipment has risen by less than two percent a year. During
the first postwar decade, it was twice that rate. It should
surprise no one that the proportion of our machinery and equipment
over ten years old has risen alarmingly.
What are the answers? There are many. But they should not
include a withdrawal from our responsibilities for sharing in
Free World security and development because our economic prospects
no longer attract investment from capital sources at home and
abroad or our competitive efficiency no longer enables us to
achieve equilibrium in our balance of international payments.
The tax bill would help, immediately and directly, to meet
these problems by leaving more spending money with the customers
and more profits and incentives with the producers and suppliers.

- 8 That is why it includes a reduction in individual tax
rates that will leave $8.9 billion with the customers who will
spend about $8 billion of that amount on additional consumption.
These expenditures will set in motion the familiar economic
process in which money circulates and ultimately increases
consumer spending by several times the amount of the initial tax
cut. That strong and sustained rise in consumer demand -- and
thus in markets and profit-s for industry -- will complement the
direct incentives to investment.
But those additional and direct incentives -- increasing
the rate of return after taxes and reducing the period of risk
must be there if savings and self-generated cash are to be put to
work in expanding old businesses and creating new ones.
That is why we included as the most important part of the
Revenue Act of 1962 a provision setting up a seven percent tax
credit for new investment. That is why we hastened to complete
in that same year a thorough revision of depreciation guidelines
and procedures. These two measures together reduced tax revenues
from business by $2-1/2 billion a year increasing profitability
and cash flow and reducing the period of risk. Together they
provided a powerful stimulus to increased investment. But clearly
they were not enough. The economy of the United States still is
not moving rapidly enough toward full employment, and inadequate
investment is a major reason behind our lagging growth and
stubborn unemployment.
Not long ago Henry Ford, II and Stuart T. Saunders,
Co-Chairmen of the Business Committee for Tax Reduction, told the
Senate Finance Committee and I quote, "corporate profits after
taxes have come down, whether measured as a percent of investment
capital, of sales, or of the corporate portion of Gross National
Product." They presented to the Committee a comparison of the
figures since 1957 on the three major forces in economic
growth -- government expenditures, consumer demand and private
investment -- to indicate that the investment lag was playing a
major role in the failure of the economy to move closer to full
employment.
These figures indicated that from 1957 to 1962, in real terms,
Federal purchases of goods and services rose more than 13 percent,
total national output went up more than 16 percent, consumer
expenditures went up more than 17 percent, state and local
government purchases went up 28 percent, but plant and equipment
spending declined by mOre than one percent.

- 9 One of the most important aspects of creating a sustained
economic expansion is the need to utilize the fruits of new
technology in the form of new products or the adaptation of
existing products to new markets. Increasing the profitability
of new investment is the most effective way to make more
attractive the investment decisions which are not being taken
today. It is the most effective way to make today's marginal
project the acceptable venture of tomorrow. It is the most
effective way to maximize the benefits of the tremendous
technological, educational, and human resources of the United States
As new techniques and new products are developed and as new
markets are opened up, new demand will be created, new investment
will be fostered, and new jobs will be available that would never
have been available otherwise.
In short, unless we get a substantial increase in investment,
we aren't going to create the jobs we need to. reduce unemployment,
the jobs we need to keep in phase with automation or the jobs we
need to provide productive work for the huge number of young people
who will shortly enter the Labor Force.
And it is important that we do not sacrifice increasing
efficiency to our failure to meet the unemployment problem. As
the noted commentator on economic affairs, Harold Dorsey, recently
noted: "Increasing efficiency in production and distribution is
the very heart of standard of living growth."
Unless we get a substantial increase in investment, our
economy will not develop the dynamic expansionary momentum we
need to keep domestic investment funds at home and attract foreign
investment in greater quantity from abroad.
Unless we get a substantial increase in investment, we
aren't going to step up productive efficiency to the point
where we can make significant gains in meeting and overcoming
the increasing challenge from foreign producers in competitive
markets around the world.
Unless we get an increase in investment, we aren't going to
step up the expansion of our economy enough, we aren't going to
increase its rate of growth enough, and we won't move fast enough
toward the time when we can plan and accomplish a balanced budget
without skimping on our national needs.

- 10 It should not be surprising that increasing invesbnent has
been a major part of the problem to which tax and economic policy
has been directed for the past several years. That is why top
priority was given to the investment credit and to depreciation
liberalization. That is why corporate rate reduction is a major
part of the bill now before the Senate Finance Committee and why
the Treasury welcomes the improvement in the investment credit
that will come with the provision eliminating the requirement that
assets which qualify for the credit must be placed on the books
for depreciation at only 93 percent of their actual cost. For
this bill is a complementary part of a program designed to
maximize the opportunities of our free-market economy. By
increasing the rate of profit after taxes this bill will help to
make the most of the investment incentives which have been so
important in developing the competitive vitality of American
industry.
In 1964 alone corporate taxes will be reduced by $1-1/2
billion. In 1965 corporate taxes will be reduced by $2-1/3
billion.
That means that the total effect of the investment tax
credit, depreciation reform and corporate rate reduction would
be to reduce business taxes by about $5 billion a year plus
the individual rate reductions going to unincorporated businessmen.
In other words, direct business incentives will have received
about 40 percent of the total tax reduction provided for under
these three tax programs.
It has been estimated that the total effect of this program
will be to increase the profitability of new investment in a
ten-year asset, for example, by more than 35 percent. I think,
you will agree that this is indeed a significant stimulus to
new investment and one which should be brought into full play
without delay.
This brings me to another equally current aspect of the
consensus that backs up a prompt enactment of the tax bill -the general agreement that failure or delay to pass it will
retard the expansion of the economy.
The year-end predictions of the economists, business and
academic, the commentaries of the trained observers, the
statements of leading businessmen -- in formal forecasts,
in annual reports, in news articles, in market analyses -are all in general agre,ement on one point -- the outlook for the
economy would be drastically different without a tax cut than
it would be with one. Forecasts of gross national product in

- 11 1964, however optimistic, invariably give two figures -- a higher
one assuming an early passage of the tax bill. Even more telling,
for investment purposes, the outlook for the last six months of
1964 and 196~ is said, by many, to depend upon the early enactment
of the tax bill.
The tax program has become the leading psychological factor
in the world of business and finance. It is viewed as the
touchstone for sustained expansion and the element of promise for
the long term future. Business expansion and consumer buying
in a large measure reflect confidence in the future. Expectations
of the enactment of the tax program have become a built-in
factor in the aspirations of the business and financial world and
a basis for hopes for continued good times by the consumer. To
frustrate those expectations by delay and doubts as to the future
passage of the bill entails serious economic risks that flow from
diminished confidence and uncertainty.
As businessmen, many of you will agree wholeheartedly with
President Johnson's comment in his State of the Union Message
that, and again I quote:
"Until the bill is signed its investment
incentives cannot be deemed certain and the
withholding rate cannot be reduced and the
most damaging and devastating thing you can do
to any businessman in America is to keep him
in doubt and to keep him guessing on what our
tax policy is."
There is broad agreement on the damage and the threat inherent
in further delay, in further haggling, in further fussing and
fuming. A recent speech by Dr. Raymond J. Saulnier, former
Chairman of President Eisenhower's Council of Economic Advisers,
put the situation in realistic terms. As Dr. Saulnier points
out, he has serious reservations about a number of aspects of the
Administration's economic policy. In a speech last October he
went on to describe those doubts in detail. Then he made what I
consider a very important point and I would like to read from that
portion of his speech:
" . . • as things stand now the prospect of
tax reduction has been so thoroughly built into
expectations and planning and to some extent
also into the financial commitments of individuals
and businesse~ that it would be seriously
deflationary to call it off."

- 12 I would add that it is an equally serious restraint on the
economy to put it off.
There is general agreement among almost all economists and
business and financial leaders on.that point. The reason is not
hard to find -- and it is not only psychological or intangible.
It is hard cash -- six to eight hundred million dollars worth
of it that is being withheld from taxpayers and put into the
Treasury each month the tax bill is not enacted.
As Mr. Edwin Dale, the distinguished economic correspondent
of the New York Times, put it last Friday~
"Despite the severe spending squeeze, the
new budget is still highly stimulative in its
economic impact, in the view of many private
analysts as well as Administration economists."
This stimulus, as the article points out, comes mainly from
the proposed tax cut. This is a rather significant aspect of
the combination in this year's economic policy of strong emphasis
on economy together with reduction in taxes. This budget will
cut the deficit in half -- from this year's $10 billion to just
under $5 billion for 1965. Yet, despite this strong ho1ddown
in government spending, the net fiscal stimulus to the economy in
1964 from the Federal government, the stimulus to jobs and
income, to production and to profits, will be greater than in any
other peacetime year in the history of the United States.
In fact, if all figures are converted to a full employment
basis for purposes of comparison, it becomes evident that not
only is the 1964 stimulus to the economy from the Federal budget
(based mainly on the tax program) three times as great as in any
of the last three years, it is in fact more than $3 billion
greater than in any other peacetime year -- if the tax program
is enacted soon.
That is another reason why delay in final passage is so
important. There are those who excuse delay or overlook its
importance because they assume that the bill, when passed, will
be retroactive to January 1 of this year. They overlook the
fact that much of the hard, tangible benefit of the tax cut cannot
really begin to be felt until it becomes law.

- 13 Only when the bill is signed can the withholding rate on all
wages and salaries be reduced.
President Johnson has recommended that the bill be changed
to reduce the withholding rate immediately upon passage from
the present 18 percent to 14 percent. Under the bill as now
drawn, the withholding rate would go to 15 percent when the bill
is passed and to 14 percent next year. But because, among other
things, of the loss of economic stimulus which has already resulted
from delay in the bill, the President judged it necessary to
broaden the economic impact of the bill.
That means that regardless of whether the bill is made
retroactive to January 1st, regardless of the reduction in
tax liabilities for the entire year, every month that the
withholding rate stays at its present 18 percent instead of the
proposed 14 percent deprives the economy of the additional
$800 million of purchasing power. That is what delay is drawing
from the economy each month -- $800 million a month, $25 million
a day. That means that each hour this bill is being debated
another $1 million is drawn from the American economy into the
Treasury tax and loan accounts.
To be sure, the money so collected will be returned to the
spending stream in the form of tax refunds a year from now if
the bill is eventually passed. But, not many businessmen are
likely to make investment decisions today on the basis of an
expected upswing in purchasing power a year from now that comes
from a tax bill that they think might be passed months from now.
There is yet one more factor that bears importantly on the
consensus and the propriety of President Johnson's request that
the Congress take prompt action. That is his statement in the
State of the Union Message last week that both the expenditure
level in the administrative budget for fiscal 1965 and the
request for new obligational authority would be below the levels
requested last year.
Some fine people have been unwilling to support a tax
reduction from which they might personally benefit unless
persuaded that it is not at the cost of weakening the fabric
of our national fiscal and financial position. The basis of
concern was the enactment of tax reduction at a time when there
is a sizeable budget defiCit, following on years of deficits.

- 14 Both your organization and the Treasury Department during
the past year have been in the forefront of those who felt and
voiced the necessity of coupling the proposed tax cut with
effective control of the increase in government expenditures.
On our part, from early last year, we have repeatedly
espoused this economic program as having two elements: first,
a substantial reduction in income taxes and rates, and, second,
as the tax cut becomes fully effective and the economy expands
in response, the allocation of a substantial part of the
resulting revenue increases toward eliminating a transitional
budget deficit.

We did so because the late President Kennedy had specifically
and consistently coupled his tax proposals last year with a
commitment to expenditure control in his messages on the State
of the Union, the Budget, and Taxes.
Moreover, both he and the House of Representatives recognized
and accepted the responsibility of accompanying tax reduction
with expenditure control as the surest and quickest way of
bringing the nation to balanced budgets and surpluses in a manner
consistent with our national needs and responsibilities.
It is no longer necessary to review in detail the specific
pledges and steps toward their execution. For President Johnson,
in submitting a budget for fiscal 1965, is giving concrete reality
to the pledges that have heretofore been made. We who accepted
and relied on pledges of fiscal responsibility can now be joined
by those who wanted to see the deeds as well as the words.
The sharp break with the past pattern of substantial
projected expenditure increases can be measured in an excerpt
from the recent statement of your own President, Mr. Charles
Stewart, that:
" . . . in 11 years federal administrative
budget expenditures have increased by some
46 percent or an average of $2.8 billion
annually. In the last three years the average
increase has been $5.7 billion annually • . . •
If increases were to continue at the rate established
in the past 3 years, our administrative budget for
fiscal year 1965 would amount to $104.5 billion."

- 15 Now, the tax cut will be accompanied by a budget which
calls for expenditures in fiscal 1965 -- not of $104.5 billion
or of $101.9 billion -- or of $99.9 billion -- or even $98.9
billion -- but of $97.9 billion, almost $1 billion below the
budget presented to Congress a year ago this month and a half
billion less than projected expenditures for fiscal 1964.
That is expenditure control in action; that is full performance
running over of the. earlier pledges that a substantial part of
tax revenue increases from expansion will be used to reduce the
budgetary deficit until balance is reached.
It is no wonder that organizations which feel that the
national need for general tax reduction is immediate and pressing,
but that action should be taken only if at the same time
additional expenditure control steps accompany it, are encouraged
to re-examine their reservations. The American Bankers Association
is such an organization. Dr. Charls Walker, its Executive Vice
President, in speaking of President Johnson's 1965 Budget announcement, had this to say:
" . . . he has done much to remove the
major stumbling block in the way of the
income tax cut. Prospects for early
enactment of the pending bill are much
improved."
The President's decisive action also moved Mr. Stuart Saunders,
Co-Chairman of the Business Committee for Tax Reduction, to say
to the President last week:
"The only major opposition to the pending tax
bill has come from those who feared that a
reduction in tax rates might lead to mounting
Federal deficits. It seems to us that in light
of your demonstrated determination to make a
successful attack against unnecessary spending
and to cut the Federal deficit, it would be most
difficult to oppose enactment of H.R. 8363 on
grounds of fiscal irresponsibility. On the
contrary, prudent economics now demands more than
ever the immediate enactment of this legislation
as a necessary stimulant to the private sector of
the economy.
"Mr. President, the Executive Committee of
The Business Committee for Tax Reduction and its
more than 2,800 members pledge to you their full
and active support for prompt passage by the
Senate of H.R. 8363, substantially in the form
approved by the House, with its effective date
retroactive to January 1, 1964."

- 16 May I dare to express the hope that your organization will
join in this sentiment?
With every month of delay, we deny the American businessman
the heightened incentives in the tax bill for new and greater
investment in plant and equipment. With every month of delay,
we restrain the execution of business and personal expenditure
plans that only the certainty of an $11.2 billion tax cut can
provide. With every month of delay, we hold back the full
confidence in the economic outlook, both long term and short range,
that the passage of the tax bill will inspire. With every month of
delay, we deprive ourselves of added economic impetus for greater
growth in 1964 and greater assurance against any loss of momentum.
I

The country urgently wants the tax bill -- expects the tax
bill -- and needs the tax bill. The need is clear, the need is
great, the need is now.

000

- 3 -

and exchange tenders will receive equal. treatment.

Cash adjustments will be made

tor differences between the par value of maturing bills accepted in exchange and
the issue price of the new bills.
'.ale income derived from Treasury bills, whether interest or gain from the sale
or other disposition ot 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

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 ga.1n or loss.
Treasury Department Circular No. 418 (current revision) and this notice, prescribe the te~s of the Treasury bills and govern the conditions of their.issue.
Copiea of the circular may be obtained from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be made on the printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches ,on application therefor.

Banking institutions generally may submit tenders for account of customers
provided the names ot the customers are set forth in such tenders.

Others than

banking institutions will not be permitted to submit tenders except tor their
own account.

Tenders will be received without deposit from incorporated banks

and trust companies and f'rom 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.

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 reserVoations, noncompetitive tenders for $ 200,000 or

(f#J

less for the additional bills dated
ing until maturity date on

$lob 000 or less for the

october~ 1963

April _1964

, (91

(dilij

days remain-

) and noncompetitive tenders for

182 -day bills without stated price from anyone

(CHi

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

January 23, 1964

---=;,::::;;.;;.;.;......:7.:(C$~:----

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing _.;;.J..;..a~nua_ry~r-=2=-=3:-i,~1_9_6_4__ •

(Ci#

Cash

TREASURY DEPARTMENT

Washington
BlXJllMI'XlitkXkJC'DZI~

January 15, 1964

~
TREASURY is 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
of

January 23, 1964

$ 2,102&£5,000 , as follows:
91 -day bills (to maturity date) to be issued

January 23

Let
~

, in the amount

iii'

1964

in the amount of $ 1,300mO,000 , or thereabouts, represent-

ing an additional amount of bills dated
and to mature

April

amount of $ 7991~000

1964.

October 24, 1963

' originally issued in the

,the ,additional and original bills

to be freely interchangeable.
182 -day bills, for $ 80010~OO

(CBl

Janpaq~

1964

, or thereabouts, to be dated

, and to mature

July 23aQ64

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 Standard time,

Monday, January 20, 1964

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

January 15, 1964

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 January 23, 1964, in the amount of
$2,102,865,000, 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 October 24,1963,
mature April 23,1964,
originally issued in the
$799,739,000,
the additional and original bills
interchangeable.

January 23, 1964,
representing an
and to
amount of
to be freely

182 -day bills, for $800,000,000,
or thereabouts, to be dated
January 23,1964, and to mature July 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 Standard
time, Monday, January 20, 1964.
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
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-I099

- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which publio
announcement ,Will be made by the Treasury Departmen t', of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or reject10n thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for. 200,000 or less for the additional bills dated
October 24,1963, ~l-days remaining until maturit¥ date on
and noncompetitive tenders for ~OO 000
April 23 1964)
or les8 'tor the 182 -day bills without stated prioe 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 accordanoe with the bids must be
made or completed at the Federal Reserve Banks on January 23, 1964,
1n cash or other immediately available funds or in a like face
~unt of Treasury bills maturing January 23, 1964. Cash and
exchange tenders will receive equal treatment. Cash adjustments
w1l1 be made for differences between the par value of maturins
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,
Wlder 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 Treaeur,r
bUls 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
80ld, 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
~turn 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

- 2 -

Immediately after the closing hour, tenders will be opened at
tbe Federal Reserve Banks and Branches, following which publio
announcement will be made by the Treasury Departmen t'. of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretar1 of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $ 200,000 or less for the additional bills dated
october 24,1963, ~l-days remaining until maturit¥ date on
April 23 1964)
and noncompetitive tenders for ~OO 000
01' lesa 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 accordanoe with the bids must be
made or completed at the Federal Reserve Banks on January 23, 1964,
1n cash or other immediately available funds or in a like face
~unt of Treasury bills maturing January 23, 1964. Cash and
exchange tenders will receive equal treatment. Cash adjustments
will be made for differences between the par value of maturins
bills accepted in exchange and the issue price of the new billa.
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,
~der the Internal Revenue Code of 1954. The bills are EubJect 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
~venue Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to aocrue until such bills are
sold, redeemed or otherwise disposed of, and suoh 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
nturn 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

TREASURY DEPARTMENT

January 16, 1964

FOR TI{[·LED IATE RELEASE
TREASURY DECISION ON PEAT HOSS

UNDER THE ANTIDUI-lPING ACT

The Treasury Department has determined that peat moss, horticultural and poultry grade, from Atkins and Durbrow Ltd., Vancouver,
B. C., and llestern Peat Company Ltd., New

~vestminister,

B. C. (shipments

from Hanitoba plant only), Canada, is beinG, or is likely to be, sold
at less than fair value within the meaning of the

Antid~~ing

Act.

Accordin6 ly, this case is being referred to the United States
Tariff Commission for an injury determination.
Notice of the determination and of the reference of the case to
the Tariff Commission will be published in the Federal Register.
The dollar value of imports received from these two firms during the first 6 months of 1962 was approximately $2,5 00,000.
The investiGation covered the sales of several Canadian firms
in addition to those specified above.

The result as to the other

firms was that they were not sellin.3 at less than fair value.

TREASURY DEPARTMENT

January 16, 1964

Fon r:ZDIATE P.ELEASE

TP-EAStffiy DECISION OH PEAT HOSS
UIJDEn THE ANTIDU:·IPDm ACT

The Treasury Department has determined that peat moss, horticultural and poultry :..;rade, from Atkins and Durbrmi Ltd. , Vancouver,
:3. C., and ·.lestern Peat C0T.19any Ltd., !Jew :festl~ri.nister, B. C. (shipments

fron :Ia.nitoba plant only), Canada, is bein...;, or is likely to be, sold
at less than fair value liithin the meaninG of the Antid1.Lllpin3 Act.
Accordil\..:ly, this case is bein.::.; referred to the United States
Tariff Cor:u:ussion for an injury deternri.nation.
I10tice of the determination and of the reference of the case to
the Tariff Corre-aission will be published in the Federal Re..:;ister.
The dollar value of Lnports received from these two firms durin~ the first

G nonths of 1962 was approxLnately $2,500,000.

The investi::;ation covered the sales of several Canadian firms

in addition to those specified above.
fir:1s vms tr.at the? vrere not

sellin~

The result as to the other
at less than fair value.

-2-

COTI'ON WASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: PrOVided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:

Country of Origin
United Kingdom ••••••••••••
Canada ••••••••••.••••.••••
France •••••..•••.•..•.•••.

India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium .•.........•..•.•••
Japan •••••••••••••••••••••

China ••••••.•••••.••.•••••
Egyp t ••••.••..••••••••••••

Cuba ••••••••••••••••••••••
Germany .••••••••••.••••.••
Italy ...•.........•......•

Es tablished
TOTAL QOOTA

Total Imports
Sept. 20, 1963, to
January 13, 1964

Established
33-1/3% of
Total Quota

Imports
11
Sept. 20, 1963 ,
to January 13, 1964

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

530,106
239,690
187,675

1,441,152

72,166

75,807

55,151

11 ,249

22,747
14,796
12,853

37,280

25,443
7,088

25,128

5,482,509

1,073,169

1,599,886

152,445

3 /+,147

33,022

Other, including the U. S.

II Included in total imports, column 2.

D-llOO

The country designations listed in this press re1o.ase are those specified in Presidential Proclamation
No. 2351 of September' 5" 1939, as modified by the Tariff Schedules of the United States. Since th[l~
date'~he-nnmes of certain countries have been changed. The outmoded names are being retained because
of their geographical coverage an~ have no political connotation.
Prepared in the Bureau of Customs.

TREASURY DEE?ARTMENT

Washington, D. C.

IMMED lATE RELEASE

FRIDAY, JANUARY 17,1964
D-1100
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, as modified by
the Tariff Schedules of the United States which became effective August 31, 1963.
COTTON (other than linters> (in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September 20, 1963- January 13. 1964
Country of Origin
Egypt and Sudan •••••••••••••
Peru •••••••• oo • • • • • • • • • • • • • •
India and Pakistan ••••••••••
China •••••.•••••••••••••••••
Mexico ••••••••••••••••••••••

Brazil ••••••••••••••••••••••
Union of Soviet
Socialist Republics •••••••
Argentina •••••••••••••••••••
Haiti •••••••••••••••••••••••

Ecuador •••••••••••••••••••••

Established Quota

Imports

Country of Origin

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

628,215
11 ,094
157,300

Paraguay ••••••••••••••••••••

8,803,259

600,000

475,124
5,203
237
9,333

Established Quota

Honduras ••••••••••••••••••••
Colombia •••••••••••••••••••.
Iraq ••••••••••.••••••••.•.••

British East Africa •••••••••
Indonesia and Netherlands
New Guinea ••••••••••••••••
llBritlsh W. Indies •••••••••••
Nigeria •••••••••••••••••••••
2/British W. Africa •••••••••••
- Other, including the U.S ••••

1/ Except Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Except Nigeria and Ghana.

Cotton 1-1/8 u or more
Established Yearly Quota - 45,656,420 1bs.
Imports August 1, 1963. January 13. 1964
Staple Length
1-3/8" or more
1-5/32" or more and under
1-3/8" (Tanguis)
1-1/8" or more and under
1-3/8 11

Allocation
39,590,778

39,590,778

1,500,000

81,759

4,565,642

4,565,6 /+2

Imports

752
871
124
195
2,240

71,388
21,321
5,377
16,004

Imports

TREASURY DEE' ARTMENT

Washington, D. C.

DlllDIATE RFl.EASE

FRIDAY, JANUARY 17,1964

0-1100
Preltminary data on imports for consumption of cotton and cotton waste chargeable to the quota.
eatablished by the President's Proclamation of September 5, 1939, as amended, aa modified by
the Tariff Schedules of the United States which became effective August 31, 1963.
COTTON <other than linters) <in pounds)
Cotton under 1-1/8 inches other than rough or harsh under 3/4"
Imports September 20, 1963- Janunry 13. 1964
Country of Origin
Egypt and Sudan •••••••••••••
Peru ••••••••••••••••••••••••
India and Paki.tan ••••••••••
China •••••••••••••••••••••••

Mexico ••••••••••••••••••••••
Brazil ••••••••••••••••••••••

Union of Soviet
Socialist Republics •••••••
Argentina •••••••••••••••••••
Haiti •••••••••••••••••••••••
Ecuador •••••••••••••••••••••

Established Quota

Imports

Country of Origin

783,816
247,952
2,003,483
1,370,791
8,883,259
618,723

628,215
11 ,094
157,300

Honduras ••••••••••••••••••••
Paraguay ••••••••••••••••••••
Colombia ••••••••••••••••••••

8,803,259
600,000

British East Africa •••••••••
Indonesia and Netherlands
New Guinea •••••.••••••••••
yBritish W. Indies •••••••••••
Nigeria •••••••••••••••••••••
2/British W. Africa •••••••••••
- Other, including the U.S ••••

Established Quota

Iraq ••••••••••••••••••••••••

475,124
5,203
237
9,333

.!I Except Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
1/ Except Nigeria and Ghana.
Cotton 1-1/8" or more
Established Yearly Quota - 45,656,420 Ihs,
Imports August I, 1963. January 13. 1964
Staple Length
l-l/8" or more
1-5/32 11 or aore and under
1-3/8" (Tanguis)

Allocation
39,590,778

Imports
39,590,778

1.500,000

31,759

4.565,642

4,565,642

1- LIS" or more and under
1-3/8"

752
871
124
195
2,240

71,388
21,321
5,377
16,004

Imports

-2-

COTI'ONWASTES
(In pounds)
COTTON CARD STRIPS made from cotton having a staple of less than 1-3/16 inches in length, COMBER
WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OTHERWISE
ADVANCED IN VALUE: PrOVided, however, that not more than 33-1/3 percent of the quotas shall
be filled by cotton wastes other than comber wastes made from cottons of 1-3/16 inches or more
in staple length in the case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany, and Italy:
Established
TOTAL QrnTA

Country of Origin
United Kingdom ••••••••••••
Canada ••••••••••••••••••••

France ........•.....•..
India and Pakistan ••••••••
Netherlands ••••••••••
Switzerland •••••••••••••••
Belgium...
• •••••
Japan..

.....

. ....•

China..

•••••

• •••••

Eg-yp t. . .

Cuba....

. ........... .

• •••••••••••••

Ge rmany. •

• •••••••••••••

Italy....

. ............. .

Total Imports
Sept. 20, 1963, to
January 13. 1964

Established
33-1/3% of
Total Quota

Imports
1/
Sept. 20, 19 G3, to J':lOuaty 13. 1964

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

530, lOG
239,690
187,675

1,441,152

72,166

75,807

55,151

11,249

22,747
14,796
12,853

37,230

25,443
7,088

25,128

5,482,509

1,073,169

1,599,886

152,4!+5

3 /+,147

33,022

Other, including the U. S.

D-llOO

1/ Included in total imports, column 2.
The country designations listed in this press ;:-elr:nsc are those specified in l?residenti:ll L'rocL.m;'.tion
No. 2351 of September 5, 1939, as modified by the Tariff Schedules of the United SLltes. Since the'..':
date ~he-names of certain countries have been chclnged. The outmoded names are being retained because
of their geographical coverage and have no political con'1ot,:ltion.
1.' repared in the Bureau of eus toms.

n.t.a:DL\TE RELEASE

D-IIOI

FRIDAY, JANUARY 17,1964

PRELIMINARY DATA ON IMPORTS J'OR CONSUWfiON or UlOIAWFAC'roRED LEAD .ABD ZINC CHA.RGE.ABLE TO 'IRE QUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMA.fiOllIiO. 3257 6l' SI!PTEMBER 22tc1958bn-cW~fIED BY THE TARIn' SCHEDDLES 01' THE
tnr.I'.rED STATES, 1IBICH B AVE
AUGUST 31, 1963.
QUARTERLY QUOTA PERIOD IMPORTS _
ITEM 925.01t

Januarj 1 -

31, 1964

January 1 - Jan"4~ry 10, 1964 (or as noted)

Lead-bearing ores
and materl.als

Productloll

:
I

;OUarterly QUota

··
··
·

U~t

lead and
lead waite and scrap

Zino-bearing ores and
materials

22,540,000

:
:Uuwrought zino (except alloys
: of zinc and zillo dust) and
:
zino waste and scrap
:

":QUirterly QUota

11,220,000

I
I
I
I

; Dutiable read
Imports : Dutiablr lead
PoUMa'
PdUhdi)
ll,22O,OOO

ITEM 925.04-

ITDI 925.02-

ITEM 925.03I

Country
of

Australia

~aroh

:uuarterly QUota

:QUitterly-QulO'ta

Imports: ZinO.9_@,tent
POUDdJ)

Imports

By Weight

(POi11Mi)

1,140,042

Belgium and
Luxemburg (total)

Bolivia

5,040,000

.....4,716,467

Canada

13,440,000

"329,468

15,920,()Q()

3,961,381

66,400,000

66,480,000

Italy

16,160,000

*"'3,309,776

(formerly Belgian Congo)

lA,sao,ooo

14,880,000

37,840,000

'5,056,724

3,768,231

70,480,000

3,105,828

6,320,000

12,880,000

399,910

35,120,000

4,756,687

3,760,000

1,919,667

5,440,000

15,760,000

Yugoslavia
All other foreign
countries (total)

7,520,000

36,880,000

Republic of the Congo
Un. So. Africa

7,520,000

3,600,000

Mexico

Peru

Imports

6,560,000

"'"'95,2)1

-See Part 2, Appendix to Tariff SohedUles.
--Imports as of January 13, 1964

PREPARED III 'lEE BUREAU OF CUSTQ.tS

6,080,000

17,840,000 "10,102,718

6,080,000

w-blItCi_.

D. C-:

DNEDUr.E REI..E£.SJ:

FRIDAY, JANUARY 17,1964

D-llOl

PRELDlINARY DATA 0If IMPORTS FOR COHSUllFTION or UJOa.NUFAC'lURED LEAD AND ZINC CHARGEABLE TO THE cuons ESTABLISHED
Iff PRESIDENTIAL PROCLAlaTIClIIl HO. 3257 or SEPTDIJER 22f:c~~bti MODIFIED BY THE TARIIT SCHEDULES OF THE
UliITED STATES, WHICH B
CTIVE AUGUST 31, 1963.

QUARTERLY

QUon

PERIOD DFORTS _

Janu:.>r:! 1 - t.'arch 31, 1964
Ja.nuary 1 - Janu r r'.1 le, 1964 (or as

ITl:M 925.02-

!TIll 925.03-

ITEM 925.01I
Lead-bea.ri~ p.-e8

and rna terIa.la

of
Produot10ll

: QUa.rterly Qii()u
: Dutiable read

. Dmmlii

Australia

ll,Z;X),OOO

tharrowOlt lead aDd

lead waite

&Dd

':ChliLl"'terly cnou. tmEorta ; Dutbblr lead
Pd1Hilill)

ll, 220 ,(.00

22,540,COO

scrap

I
I

ore a and
materials

Zin~ea.ring

··

:Qil&l"'terly UUota
Imports: Zir.c .9Lyent

5,040,000

·"'4,716,4157

Canada

13,440,000

"329,468

15,921),000

PO\lIldlI )

By Weight

I P oumDI )

Imports

1,140,042

3,961,381

66,~.000

66,4~C,(

7,520,000

37,840,000

">,056,724

3,600,000

Italy
Mexico

Peru

16,160,000

"'3,309,776

36,880 ,COO

3,768,('31

70 ,480 ,()()()

3,105,ea3

6,320,000

12,880,000

399,910

35,120,000

4,756,687

3,760,000

Republic of the Congo
(fo~rly Belgian Congo)
un. So. Africa

lA,BOO,OOO

14,880,000

15,760,000

o~her foreigD
countries {total}

-See Part 2,
&8

PREPARED D

1,919,667

5,440,000

'fugosla..,ia

• -Imports

;Uuwrought zino (except alloys
of zinc and zino dust) and
zinc waate and scrap
~rJ:.v-~ota

Imports

Belglun and
Luxemburg (total)
BoliYia

ITEM 925.04-

:
Country

noted)

~ppend1x

6,560,000

• ·95,2:1 1

to Tariff Sobed1ll.e ••

or January 13, 1964

mE IIORUU

CUSTCICS

6,080 ,()()()

6,080,000

17,840,000 ··lv,102,718

6,080,000

6, oeo, (){)(..

ntdED:IA.TE RELlaSJ:

D-1102

FRIDAY, JANUARY 17,1964

PRELIMINARY DATA ON IMPORTS FOR CONSUMPTION OF UNMANUFAC'lURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDENTIAL PROCLAMA.TION NO. 3257 OF SEPTEMBER 22fcl~8L AS MODIFIED BY THE TARIIT SCHEDULES OF THE
UNITED STATES, WHICH B
.l!;ITECTIVE AUGUST 31, 1963.
QUARTERLY QIJOn PERIOD -

October 1 - Deoember 31, 1963

IMPORTS -

Ootober 1 - Deoember 31, 1963

ITEM 925.01-

ITEM 925.03 *

Country
of
ProduotioJl

Lead-bearing ores
and material.e

UmrroUltht lead and
lead waite and scrap

,,
I
I

ITEM 925.04-

ITEM 925.02*
f

Zinc-bearing ores and
materials

:Umrrought zino (except alloys
: of zinc and zinc dust) and
zino waste and scrap

Australia

ll,220,OOO

11,220,000

22,540,000

Belgium and
Luxemburg (total)

7,520,000

Bolivia

5,040,000

Canada

13,440,000

6,619,121

15,920,000

66,480,000

Mexico

16,160,000

Republic of the Congo
(fo~rly Belgian CODgo)Un. So. Africa

14,880,000

Yugoslavia.
Al1 o~her foreign
countries (total)

37,840,000

3,600,000

Italy

Peru

37,840,000

7,520,000

6,560,000

5,301,413

-See Part 2, Appendix to Tariff Sohedul.ea.

PREPARED IN THE BUREAU OJ' CUSTQ.4S

36,880,000

36,024,211

70,480,000

6,320,000

6,319,014

12,880,000

12,878,531

35,120,000

3,760,000

3,758,879

5,440,000

5,438,847

6,080,000

15,760,000

15,757,665

6,080,000

17,840,000

ceca;

II.

JM«D'UD RD ".SK

D-1102

FRIDAY, JANUARY 17,1964

PRELnaHARY ~ ar DFORrS J'OR OJHSUlF1'I01'l or tnOWmFAC'l'URED LEA.D .urn ZINC CHARGUBLI: 'l'O mE QUons ES'rABLISHED
BY PRESlll£&iLlL pJKX:I.AWnar .0. 3257 or SEPTDSER 22f.cl~b:i MODIFIED BY THE TA.RDT SCBEOOLES ot THE
UlIII1"ED Su'TES, WRICH B
CTIVE AUGUST 31, 1963.

c:I1.lR1'ERLY

won

PERIOD -

October 1 - Deoember 31, 1963

~TS-

October 1 - December 31, 1963

IT!),( 925.01-

ITDof 925 .03.

C0'I.U1 try
of
Produotloa

Lead-b.~.

aDd Da

··
:

ITEM 925.04-

ITEM 925.02-

U~t~&Dd
lead
te
scrap

I
I
I
I
l

Zino-bearing ores and
materials

;UDWrQught zino (except alloys
s of zinc and zino dust) and
zinc waa te and • crap
•

QIiOta
":Quarter1.y GlOta
: Dutiable tead
Import. : Dutiablr lead
POtiMi)
PdUbdi)

~rly

Australia

ll,220,OOO

11,220,000

22,540,000

,~erlv QUota
Import. s Z no. CoI1tent_
_ (P6Uhd!)

Import.

Canada

7,520,000

5,040,000

5,040,OC()

13,440,000

6,619,121

15,920,000

66,400,000

66,48C,ooo

Italy

16,160,000

lA,eeo,ooo

36,024,211

7'0,480 ,000

70,480,000

6,320,000

".319,014

12,880,000

12,878,531

35,120,000

3. 760,<X>O

3,758,e79

5,440,000

5,438,847

6,080,000

6,OBO,OOO

14,800,000

YugoalaTia

o':.h.er toreigJa
countrie. (total)

37,840,000

36,880,000

RepubUc of the Coago
(fo~rly BelgiaD Coago)
On. So. Africa

37,840,000

7,520,000

3,600 ,000

Yexico

Peru

Imports

22,540,000

BelgltaD aDd
Luxemburg (total)
BollTla

:lO.'Ua.t'terly QUota
By Weight
(Pomm)

6,560,000

5.,301,413

-See Part 2, AppeDllb to Tarlt'f SoM4al.a.

PREPABD D mI 1IJRE&U

aJSYCMl

15.761J,OOO

15,757,665

6,080,000

17,840,000

17.840,000

- 2-

Commodity

Unit
Imports
of
as of
:Quantity: Jan. 4. 1964

reriod and Quantity

solute Quotas:
tter substitutes containing
over 45% of butterfat, and
butter oil ••••••••.•••••••••••• Calendar Year

1,200,000

Pound

Quota Filled

12 mos. from
Sept. 11, 1963

1,000

Pound

530

shelled or not shelled,
blanched, or otherHise prepared
or preserved (except peanut
12 mos. from
butter). . . . . . . . . . . . . . . . . . . . . . .. llugus t 1, 1963

1,709,000

Pound

Quota Filled

bers of cotton processed
but not spun ••••••••...•.•••••

~nuts,

Imports through January 13, 1964.

D-II03

TREASU~ Y

DEE' AJZT!vIENT
I!c..shington

MMEDI1'.TE RELEASE

UDAY, JANUARY 17,1964

D-1103

The Bureau of Customs announced today preliminary figures on imports for consumplon of the fol1o~"ing commodities from the beginning of the respective quota periods
hrough January 4, 1964:

Commodity

Period

a~d

: Unit
Imports
of
as of
:Quantity: Jan. 43 1964

Quantity

ariff-Rate Quotas:
ream, fresb or sour •••••.••••••. C2.1endar Year

1,500,000 Gallon

hole Milk, fresh or sour •••••••• Calendar Year

3,000,000 Gallon

Jan. 1, 1964attle, 700 1bs. or more each
{other than dairy cow·s) •••..••• Harch 31, 1964

120,000 Head

12 roos. from
attle less than 200 ibs. each ••• April 1, 1963

200,000 Head

50,161

ish, fresh or frozen, filleted,
etc., cod, haddock, h~ke, pollock, cusk, and rosefish ••••••• Calendar Year

announced

20und

3,024,782

loa Fish ••.••••••••••••••••••••• Calendar Year

To be
announced

Eound

662,708

114,000,000 round
45,000,000 round

32,700,000
2,850,505

or Irish potatoes:
Certified seed •..•••••.•••••••. 12 mos. from
Other ..••.••.•......•...•..•..• Sept. 15, 19;;3

~ite

ifov. i, 1963::lives, forks, and spoons
Oct.
31, 1964
with stainless steel handles •••

To be

69,000,000 Pieces

31,810,028

TREASUR Y D~ ARTMENT
Washington

IMHE.D lATE RELEASE

FRIDAY, JANUARY 17,1964

D-II03

The Bureau of Customs announced today preliminary figures on imports for Conl~
tion of the following commodities from the beginning of the respective quota period.
through January 4, 1964:

Coaaodity

: Unit
Import.
of
al of
:Quantity: Jan, 4. 1964

Period and Quantity

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
Jan. 1, 1964"
<other than dairy cows) •••..••• t>larch 31, 1964

120,000 Head

12 mos. from
Cattle leas than 200 Ibs. each .•• April 1, 1963

200,000 Head

50,161

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

To be
announced

Pound

3,024,782

Tuna Fish ••..••••••....•••...•.•• Calendar Year

To be
announced

Pound

662,708

114,000,000 Pound
45,000,000 Pound

32,700,000
2,850,505

White or Irish potatoes:
Certified seed ••••..••..•.••••• 12 mos. from
Other .••••••••••••.•••.•••••••• Sept. 15, 1963

Knives, forks, and spoons
Nov. 1, 1963with stainless steel handles ••• Oct. 31, 1964

69,000,000 Pieces

31,810,028

-2-

CoaIIodlty

Period and Quantity

Unit

laports

al of

;OUMta,tv; JAp. "

1964

solute Quota.:
.tter substitutes containing
over 451 of butterfat, and
butter 011 ••••••••••••••••••••• Calendar Year

1,200,000

Pound

Quota rUled

12 . , •• frOil
Sept. 11, 1963

1,000

Found

530

shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
12 IDOS. fTom
butter) •••••••••••••••••••••••• AUgus t 1, 1963

1,709,000

Pound

Quota Filled

bel's of cotton proce8sed
but not spun ••••••••••••.•••••

.1/

~nut8,

•
Imports through January 13, 1964.

D-1103

- 2-

Commodity

Period and Quantity

Unit
Imports
of
as of
Quantity: Dec. 31. 1963

.solute Quotas:
~ter

substitutes, including
butter oil, containing 45%
or more butterfat ••••••••••.••••

Calendar
Year

.bers of cotton processed
but not spun ................... .
!anuts, shelled or not shelled,
blanched, or othen.;rise prepared
or preserved (except peanut
butter) ........................ .

~ports

through January 4, 1964.

D-II04

1,200,000

Pound

Quat.? Filled

12 mos. from
Sept. 11, 1953

1,000

?ound

530

12 mos. from
August 1, 1963

1,709,000

Pound

Quota Filled

TREASUR Y DEl? &"\.TJ.1ENT

Hashington
~DIATE

RELEASE

DAY, JANUARY 17,1964
D-1104
The Bureau of Customs announced today preliminary figures on imports for consump-

)n of the following commodities from the beginning of the respective quota periods
rough December 31,

1963~

Commodity

Unit
Imports
of
as of
:Quantity: Dec. 31. 1963

Zeriod and Quantity

.riff-Rate Quotas:
'eam, fresh or sour ••••••••••••• Calendar Year

1,500,000 Gallon

850,433

ole Hilk, fresh or sour •••••••• Calendar Year

3,000,000

Gallo~

105

ttle, 700 Ibs. or more each
Oct. 1, 1963(other than dairy cows) •...•••• Dec. 31, 1963

120,000

Head

12,768

12 mos. from
ttle less than 200 1bs. each... April 1, 1963

200,000

Head

50,161 *

sh, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish ••••••• Calendar Year

24,874,871

Pound

Quota Filled

na Fish •••••••••••••••••••••••• Calendar Year

63,130,642

Pound

56,413,638

ite or Irish potatoes:
Certified seed................. 12 mos. from
Jther .........•................ Sept. 15, 1963

114,000,000
45,000,000

Pound
Pound

32,700,000
2,850,505

ives, forks, and spoons
Nov. 1, 1963dth stainless steel handles •.• Oct. 31, 1964

69,000,000

Pieces

31,810,028

~orts

through January 4, 1964

TREASUR Y DEP ARnmNT

Washington
IHHED tATK RELEASE

F.IDAY, JANUARY 17,1964

D-1104

The Bureau of Cus tOilS announced today prelia1nary figure. on import. for conlump.
tlon of the following cOlllDOdities fra. the beainnina of the rupectlve quota periodl
thro1l8b December 31, 1963~

Commodity

Unit
I.portl
of
as of
:QUAntitYi Dec. 31. 1963

Period and Quantity

T3{iff-Rate Quotas:
Cream, fresh or sour •.••••••••••• Calendar Year

1 , 500,000 Gallon

850,433

Whole Milk, fresh or sour •••••••• Calendar Year

3,000,000 Gallon

lOS

Cattle, 700 Ibe. or more each
Oct. 1, 1963{other than dairy cows) .•..•••• Dec. 31, 1963

120,000

Head

12,768

12 mos. from
Cattle 1••• than 200 lbs. each ••• April 1, 1963

200,000

Head

50,161*

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

24,874,871

Pound

Quota Filled

Tuna Fish........................ Calendar Year

63,130,642

Pound

56,413,638

114,000,000 Pound
45,000,000 Pound

32,700,000
2,850,505

*
*

31,810,028

or Irish potatoes:
Certified seed ....•.........•.. 12 mos. from
Other ..••...•.••...••••.•.••... Sept. 15, 1963

~~ite

Knives, forks, and spoons
Nov. 1, 1963with stainless steel handles •.. Oct. 31, 1964

*lmports through January 4, 1964

69,000,000

Pieces

.. 2-

Co.-odlty

Unit
'.rlod aad Quantity

tter sabat:1tutu. including
butter 0:11, coata1nlna 451
I)r more butterfat ••••••••••.••••

CalenMr

bers of cotton processed
but not spun ••••••••••••••••••••

12 moe. from
Sept. U. 1963

12 mos. from
August I. 1963

!nats, shelled or not shelled,
)lanched. or otherwise prepared
)r preserved (except peanut
)utter) •••••••••.•••••••••••••••

~orts

through January 4, 1964.

0-1104

Year

of
,
QuaptltYi

Imports

as of
31. 1963

II,.

Pound

Quota Filled

1.000

Pound

530

1,709,000

Pound

Quota Filled

.1.1

TREASUR Y DEI? ARTMENT

\-lashington
IMMEDIATE RELEASE

FRIDAY, JANUARY 17,1964

D-1105

The Bureau of Customs has announced the following preliminary figures
showing the imports for consumption from January 1, 1963, to December 31, 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

Imports
as of
December 31, 1963

Gross

285,538

Buttons •••••••••••••

680,000

Cigar s .......•......

160,000,000

Number

Coconut oil •••••••••

358,400,000

Pound

355,785,325

Cordage . . . . . . . . . . . . .

6,000,000

Pound

5,221,205

Tobacco •••••••••••••

5,200,000

Pound

Quota Filled

13,402,337

TREASURY

D~ ARTMENT

Washington
lMMED lATE RELEASE

FRIDAY, JANUARY 17,1964

0-1105

Commodity

Established Annual
Quota Quantity

Unit
of
Quantity

Imports
as of
December 31. 1963

Gross

285,538

Buttons ••••••••...••

680,000

Cigars ••••.•••••..•.

160,000,000

Number

Coconut oil •••..••••

358,400,000

Pound

355,785,325

Cordage ..............

6,000,000

Pound

5,221,205

Tobacco .•.••..•.•..•

5,200,000

Pound

Quota Filled

13,402,337

TREASURY D3PA';.T1mNT
Uashington
MEDIATE RELEASE

RIDAY, JANUARY 17, 1964

D-1106
The Bureau of eus toms has announced the foUoHing preliminary figureG shmving
Ie imports for consumption from January 1, 1964, to January l~, 1964, i:J.c1usive, of
Ilnmodities under quotas established pursuant to the J?hilippine Trade l'..greement

!vision Act of 1955:

Commodity

Es tablished <"mnua1
Quota Quantity

Unit
of
Quantity

Imports
as of
January 4, 1964

Gross

lttons •...•.•..•...

680,000

gars ............. .

160,000,000

number

)conut oi 1. ....... .

358,400,000

Lound

)rdage .•.•...•.•...

6,000,000

l"ound

,bacco •.••.••••.•••

5,200,000

Pound

325
2 7 ,867 , 6 Sl,

TREASURY DEE' ARTMEln'
Washington
1MMED lATE RELEASE

FRIDAY, JANUARY 17, 1964
0-1106
The Bureau of Cus toms has announced the following preUminary figures .bovina
the imports for consumption from January 1, 1964, to January 4, 1964, lnelullve, of
commodities under quotas established pursuant to the Philippine Trade Agreement
Revision Act of 1955:

Commodity

Established Annual
Quota Quantity

Unit
of
Quantity

Buttons •••.•.•••••••

680,000

Cigars ..•......•....

160,000,000

Number

Coconut oil ........ .

358,400,000

Pound

Cordage ............ .

6,000,000

Pound

Tobacco ...........•.

5,200,000

Pound

Imports
as of
January 4. 1964

Gross
325
27,867,664

' ..'

'-_:

:lPo..(

. . . . A. M. I'IJiWPAPlRS,

.... !!!!El 21,
t.

t.....,.

l~.

January

1964

Departaeat anoollDOed laat ,,"Iling that the t.endere tor t.wo 8er1_ ot
to b. aD add1tloMl te•• ol the biU. dat.ed Ootooer
196),
__ . . . . ...,... to be dated January 23, 1964, which .ere ofte,..d on Janary 15,
"II .4 at the Pe4enl lie_rYe Banka em January 20. Tondere wre inVited for

....., td.ll. . . .

1..,

..n..

,000,000, 01' tbe....bout..a, o£ n-4aT billa and. fer $800,000,000, Qr UieJ'Mbo1J'ta, of
Id.lla. the deWl. of tt.. two ••1'1_ are .. 1011_.
~ACClpftD

n-da,y

'lNanr7 bUl..
~Ijl. ~~I l~

,
t

112-day !rea_." bill.
!!tw-!:5 1M.! all 1!9l!
Appro.. !.qa1Y.

Annal., aat.

•

~loe

-'u.riaI

",.aufl lIDS.

Moe
99.lO8
99.lOS

Ippros. lily.

8a\4p
....
3.52"
t
98.161
).6,)81
..
).Sid"
I
96.1~
).651"
......
99.1GS
1.S)8;l 11'
ya.l~
J.61ilH 11
,." of tke ...,.. 01 ~l-4&T 1)llla oW tor at tbe low pri,ce wu .eeepted
"' .t t.be aoDt. of 182-da, bUla bicl tor at the lO1t priee was ae_vWd

.1$

2,291,000

631,58S,000
4,S11,000

lb,12S,OOO
4,562,000

$,42,,000
69,419,000
8,OlJ.i,OOO

),677,000
9,201,000

5,014,000

.2116I~,OOO

{,SOO,73.5,000 !I

/"
C

.'_

_,r

.I /.

1'-1

t.-,"

TREASURY DEPARTMENT

FOR RELEASE A. M. NE'"WSPAPERS,
Tuesday, January 21, 1964.

January 20,

RESULTS OF TREASURY'S 10lEEKLY BIU. 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 October 24 .. l~
and the other series to be dated January 23, 1964, wl1.i.ch were offered on January IS, •
were opened at tt.e Federal Reserve Banks on January 20. Tenders were invited for
.,
$1,300,000,000, ~r thereabouts, of 91-day bills and for $800 .. 000,000, or thereabouts l
l82-day bills. The details of the two series are as follows:
~

RANGE OF ACCEPTED
COHPETITIVE BIDS:

91-day TreasUXJ- bills
maturing April (:3z.. 1964
Appro7. Equiv •
Price
Annual Rate

High
Low
Average

:
:

182-day Treasury bills
maturing July 23, 1964 ~
Approx. Eq
Price
Annual Rate

99.108
3.529%
98.161
3.638%
99.105
3.541%
:
98.154
3.651%
99.106
3.538%
98.156
3.648% 1
67% of the amount of 91-day bills bid for at the low price was accepted
77% of the amount of 182-day bills bld for at the low price was accepted

TaI'AL TENDERS APFLIED FOR. ANTI ACCEPTED BY FEDE3AL RESERVE DISTRIGl'S:

District
30ston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Hinnea.polis
Kansas City
Dallas
San Francisco
TCJI'AlS

AEElied For
$
60,385,000
1,904,404 .. 000
30,548,000
31,011,000
11,673,000
31,822,000
25l,8ll,000
44,100,000
24,189,000
32,977,000
33,392,000
l78 z56o,t000
$2,634,872,000

AcceEted
$ 14,521,000
849,690,000
15,248,000
28,627,000
11,564,000
22,656,000
135,049,000
34,574,000
13,060,000
26,912,000
21,273,000
l29,t854 zoo0
$1,303,328,000

·
·

AEElied For
$
2,935,000
1,)34.715.,900
9,517,000
66,173,000
7,056,000
6,525,000
182,995,000
10,149,000
7,877 ,000
9,376,000
10,814,000
85,375 2 °°0
n,733,507,OOO

Acce ted
$ 2,297,
631,585, ,
4 .. 517,
34,325, '
4,562,
5,425,
69,419 ..
8,034,
3,877"
9,207 ..
5,814,
21 673

Includes $265,858,000 noncompetitive tenders accepted at the average price of

On a coupon issue of the same length and for the same amount invested, the returu..
these bills would provide yields of 3.63%, for the 9l-day bills, and 3.78%, for "
182-day bills. Interest rates on bills a.re quoted in tems of bank discount wi tI
return related to the face amount of the bills payable at maturity rather than
I
amount invested and their length in actual number of days related to a 360-da1 ~
In contrast, J~elds on certificates, notes, and bonds are computed in terms 0:!:i,,'I
terest on the amount invested, and relate the number of days remaining in an
payment period to the actual number of days in the period, With semiannual c
if more than one coupon period is ,in'V?lved.
:;. I

99.

~ Includes $68,575,000 noncompetitive tenders accepted at the average price of 98.

~-1107

- 2 It has been requested that vritnesses provide three copies of their
I

testimony at the time of the hearing.
Similar hearings "lere held on these regulations in 195ft •

The last amendment

to the regulations was made in 1960.
The Treasury DeparLJIlent has in the past welcomed suggestions for improvement
11

in its regulations whether made at hearings or not.

ten

year;\ the Treasury considers i t

However

after a lapse of

appropriat~~t g~;:v~~: interested a

formal opportunity to offer further suggestions in the light of developing
experience vlith the administration of the Act.
The Treasury began a review of the regulations some time ago and has engaged
the services of conSUltants from the fields of economics and accounting in the
expectation that the fresh approach which they could bring to bear on the
problems relating to the administration of the Antidumping Act "lould be helpful.
If the review proceedings, including the January 23 hearings, indicate that
particular changes in the antidumping regulations may be desirable, these
proposed changes 'will be published and the public vrill be given an opportunity to
comment on them before a final decision is reached whether or not to adopt the.Tfl.

DRAFr

HEARINGS ON AlITIDUMPING REGULliTIONS

The Treasury has set Jal1Uary 23 as the date on vlhich a public hearing would
be held on the customs regulations relatins to procedures under the Antidumping

Act.

Intention to hold such a hearing was announced on December 24, 1963.

The

hearing will be held in Room 4121 of the J/lain Treasury Building in \'/ashineton.
James A. Reed, Assistant Secretary of the Treasury, VQll preside at the
hearing.

The following have asked -'vo be heard:
Barnes, Richardson and Colburn
rvilliam J. Barnhard, Esquire
Bethlehem Steel Corporation
Committee for a National Trade Policy
Graubard, Moskowitz and McCauley
Japan Iron and Steel Exporters Association
Jones and Laughlin Steel Corporation
Kaiser Steel Corporation
Laclede Steel. Company
Lamb and Le:r'Ch
Lone Star Steel Company
Manufacturing Chemists' Association
National Council of American Importers
Frank G. Parker, Esquire
Pittsburgh Steel Company
Republic Steel Corporation
Sharp and Bogan
Steadman, Leonard and Hennessey
United States-Japan Trade Council
Uni~ed States Steel Corporation
Unit~d Steelworkers of .Ar:lerica
\'fueatland Tube Company
youngstovm Sheet and Tube Company

/) •

TREASURY DEPARTMENT
January 20, 1964
FOR IMMEDIATE RELEASE
HEARINGS ON ANTIDUMPING REGULATIONS
The Treasury has set January 23 as the date on which a public
hearing would be held on the customs regulations relating to
procedures under the Antidumping Act.
Intention to hold such a
hearing was announced on December 24, 1963.
The hearing will be
held in Room 4121 of the Main Treasury Building in Washington.
James A. Reed, Assistant Secretary of the Treasury, will preside
at the hearing.
Similar hearings were held on these regulations in 1954.
last amendment to the regulations was made in 1960.

The

The Treasury Department has in the past welcomed suggestions
for improvement in its regulations whether made at hearings or not,
however, the Treasury considers it appropriate at this time to give
everyone interested a formal opportunity to offer further suggestions
in the light of developing experience with the administration of the
Act.
The Treasury began a review of the regulations some time ago and
has engaged the services of consultants from the fields of economics
and accounting in the expectation that the fresh approach which they
could bring to bear on the problems relating to the administration
of the Antidumping Act would be helpful.
If the review proceedings, including the January 23 hearings,
indicate that particular changes in the antidumping regulations may
be desirable, these proposed changes will be published and the public
will be given an opportunity to comment on them before a final
decision is reached whether or not to adopt them.

D-ll08

- 2 ..

The following have asked to be heard:
Barnes, Richardson and Colburn
William J. Barnhard, Esquire
Bethlehem Steel Corporation
Committee for a National Trade Policy
Graubard, Moskowitz and McCauley
Japan Iron and Steel Exporters Association
Jones and Laughlin Steel Corporation
Kaiser Steel Corporation
Laclede Steel Company
Lamb and Lerch
Lone Star Steel Company
Manufacturing Chemists' Association
National Council of American Importers
Frank G. ·Parker, Esquire
Pittsburgh Steel Company
Republic Steel Corporation
Sharp and Bogan
fiteadman, Leonard and Hennessey
United States-Japan Trade Council
United States Steel Corporation
United Steelworkers of America
Wheatland Tube Company
Youngstown Sheet and Tube Company
c

Witnesses are requested to provide three copies of their
testimony at the time of the hearing.

000

TREASURY DEPARTMENT

January 21, 1964
FOR IMMEDIATE RELEASE
JOSEPH M. BOWMAN NAMED ASSISTANT TO THE
SECRETARY OF THE TREASURY (CONGRESSIONAL RELATIONS)
Treasury Secretary Douglas Dillon today announced his intention
to appoint Joseph M. Bowman as Assistant to the Secretary. His
responsibilities will include Congressional Liaison and related duties.
Mr. Bowman will succeed Joseph W. Barr, whose appointment by
President Johnson as a member of the Board of Directors of ,the Federal
Depopit'~nsurance Corporation was confirmed by the Senate ¥~sterday.
Mr. Bowman has served as Mr. Barr's Deputy since May 31, 1963.
Mr. Bowman was Legislative Assistant to Congressman John J.
Flynt of Georgia from 1957 to 1958. Following this, he practiced
law in Barnesville, Georgia. In 1962 Mr. Bowman joined the
Department of Labor where he served as a congressional liaison
officer until he joined the Treasury.
A native of Georgia, Mr. Bowman was born at Valdosta, June 23,
1931, and received his education in public schools at Quitman and
earned his LL.B. from Emory University in 1957.
He served in the U. S. Air Force from 1952 to 1956 as a
navigator, attaining the rank of Captain.
Mr. Bowman is affiliated with the American and Georgia State
Bar Associations. He is also a member of Phi Delta Theta, and of
Phi Delta Phi fraternities. He has been active in Barnesville,
Georgia, civic and religious activities, including Rotary and
Junior Chamber of Commerce. He is now a member of the Official
Board, Washington Street Methodist Church of Alexandria, Virginia.
He is married to the former Isabella Nichols of Griffin,
Georgia. Mr. and Mrs. Bowman have a son, Joseph Nichols, 9, and a
daughter, Mary Bayne, 6, and they reside at 3204 Old Dominion
Boulevard, Alexandria, Virginia.
000

D-1l09

TREASURY DEPARTMENT

January 21, 1964
FOR IMMEDIATE RELEASE
JOSEPH M. BOWMAN NAMED ASSISTANT TO THE
SECRETARY OF THE TREASURY (CONGRESSIONAL RELATIONS)
Treasury Secretary Douglas Dillon today announced his intention
to appoint Joseph M. Bowman as Assistant to the Secretary. His
responsibilities will include Congressional Liaison and related dutiE
Mr. Bowman will succeed Joseph W. Barr, whose appointment by
President Johnson as a member of the Board of Directors of the Feder .
Deposit Insurance Corporation was confirmed by the Senate yesterday.
Mr. Bowman has served as Mr. Barr's Deputy since May 31, 1963.
Mr. Bowman was Legislative Assistant to Congressman John J.
Flynt of Georgia from 1957 to 1958. Following this, he practiced
law in Barnesville, Georgia. In 1962 Mr. Bowman joined the
Department of Labor where he served as a congressional liaison
officer until he joined the Treasury.
A native of Georgia, Mr. Bowman was born at Valdosta, June 23,
1931, and received his education in public schools at Quitman and
earned his LL.B. from Emory University in 1957.
He served in the U. S. Air Force from 1952 to 1956 as a
navigator, attaining the rank of Captain.
Mr. Bowman is affiliated with the American and Georgia State
Bar Associations. He is also a member of Phi Delta Theta, and of
Phi Delta Phi fraternities. He has been active in Barnesville,
Georgia, civic and religious activities, including Rotary and
Junior Chamber of Commerce. He is now a member of the Official
Board, Washington Street Methodist Church of Alexandria, Virginia.
He is married to the former Isabella Nichols of Griffin,
Georgia. Mr. and Mrs. Bowman have a son, Joseph Nichols, 9, and a
daughter, Mary Bayne, 6, and they reside at 3204 Old Dominion
Boulevard, Alexandria, Virginia.
000

D-ll09

TREASURY DEPARTMENT

January 21, 1964
iREASURY'S ADVANCE REFUNDING RESULTS

ihe Treasury Department today announced that preliminary reports from the

Federal Reserve Banks show that total subscriptions of about $3,105 million have
been received for the 4 percent Treasury Bonds of August 15, 1970, and the 4-1/4
percent Treasury Bonds of May 15, 1975-85, included in the Department's current
advance refunding operation. Subscriptions include $2,213 million for the 4 percent bonds, and $892 million for the 4-1/4 percent bonds.
The Treasury will allot in full all subscriptions received for the 4 percent
bonds. On subscriptions to the 4-1/4 percent bonds the Treasury will allot in
fUll subscriptions up to $50,000 and other subscriptions will be subject to a 83-l/2~
allotment with a minimum of $50,000 per subscription.
ihis is the first allotment of bonds to be necessary in an advance refunding
since June, 1960. However, the total of accepted subscriptions for both bond
offerings, representing about 20 percent of the public holdings of the issues that
bad been eligible for exchange, appears to be well within the distributive and
absorptive capacity of the market. These results represent further progress in the
!reasury's continuing program of extending debt maturities and maintaining a wellbalanced debt structure without unduly disturbing the financial markets.
Details by Federal Reserve Banks as to subscriptions and allotments and of
the eligible securities exchanged for the 4 percent and 4-1/4 percent bonds will
be announced later.
Following is a breakdown of subscriptions by various classes of subscribers
(dollar amounts are in millions):

Individuals

Commercial Banks
(Own account)
All others

Totals
Government
Accounts
Grand Totals

Y
Y
110

4~ Bonds
of 1970
No. Sub.
Amount
42
3,175
$
4,100
1,234

4-1/410 Bonds
of 1975-85
Amount No. Sub.
1,074
$ 14

TOTAL

Amount
$ 56

No. Sub.
4,249

251

266

1,485

4,366

748

2,021

477

504

1,225

2,525

$2,024

9,296

$742

1,844

$2,766

11,140

339

189

$150

$2,213

$892

$3,105

Includes partnerships and personal trust accounts.
Includes insurance companies, mutual savings banks, corporations exclusive of
commercial banks, private pension and retirement funds, pension, retirement and
other f'unds-of'__ Sta.:t.a~local govermnents, and dealers and brokers.

TREASURY DEPARTMENT

January 21, 1964

DMEDIATE R.E.LEASE

'ffiEASURY'S AJNANCE REFUNDING RESULTS
'!be Treasury Department today announced that preliminary reports from the
Federal Reserve Banks show that total subscriptions of about $3,105 million have
been received for the 4 percent Treasury Bonds of August 15, 1970, and the 4-1/4
percent Treasury Bonds of May 15, 1975-85, included in the Department's current
advance refunding operation. Subscriptions include $2,213 million for the 4 percent bonds, and $892 million for the 4-1/4 percent bonds.
The Treasury will allot in full all subscriptions received for the 4 percent
bonds. On subscriptions to the 4-1/4 percent bonds the Treasury will allot in
full subscriptions up to $50,000 and other subscriptions will be subject to a e3-1/~
allotment with a minimum of $50,000 per subscription.
'Ibis is the first allotment of bonds to be necessary in an advance refunding
since June, 1960. However, the total of accepted subscriptions for both bond
offerings, representing about 20 percent of the public holdings of the issues that
had been eligible for exchange, appears to be well within the distributive and
absorptive capacity of the market. These results represent further progress in the
Treasury's continuing program of extending debt maturities and maintaining a wellbalanced debt structure without unduly disturbing the financial markets.
Details by Federal Reserve Banks as to subscriptions and allotments and ot
the eligible securities exchanged for the 4 percent and 4-1/4 percent bonds will
be announced later.
Following is a breakdown of subscriptions by various classes of subscribers
(dollar amounts are in millions):

Indi vi duals

4'" Bonds
of 1970
Amount
No. Sub.
42
$
3,175

Commercial Banks
(Own account)
All others

Government
Accounts
Grand Totals

TOTAL

Amount
$ 56

No. Sub.
4,249

1,234

4,100

251

266

1,485

4,366

748

2,021

477

504

1,225

2,525

$2,024

9,296

$742

1,844

$2,766

11,140

?J
Totals

4-1/4'" Bonds
of 1975-85
Amount No. Sub.
$ 14
1,074

189

$150

$ 339

$2,213

$892

$3,105

Includes partnerships and personal trust accounts.

Includes insurance companies, mutual savings banks, corporations exclusive of
commercial banks, private pension and retirement funds, pension, retirement and
other funds of State and local governments, and dealers and brokers.

D-IllO

TREASURY DEPARTMENT

January 22, 1964

IjjjJ~OlliI1F;

OP APP u\lS~l]i;l:'~ 01\!
,Ti.'AL '\;121-\'1. :JLL-,-'1~j

Fress release 6,2.ted August
as follo'.;:;;:

6) 1J63)

is hercoy c:or:cc~ted

':":he 'Iwrds "O:::;il\rie ll'lour lLLlls Co.) Li:;aited"

sr.o~:.ld8e "'--,lcnQcd \!herever they sppec:.~r

to read

02::Llvie 2loccr

l::ills '::;0.) Lic:.iteQ) or its suusidio.:cy) lndc.strial Grain Procl-

TREASURY DEPARTMENT
WASHINGTON.
JaLuary 22, 1964

FOH UlJ·jj:;DIATl!: RElEASE
HIT}ll~OillnJG

APP=-\AIS';:::.:ElJ'~:

Oil!

VI'TAL l-lliLAJ.' GLUlL i

'':'hc words "O:ilvic Flour' ;L~lls Co ... Lir,l"\t '-eel

as follO\lS:

5r.o.:lo. oe £L'l1cndcd wherever they 8.ppear to read "OG.i.lvic~ "'lc:~'
::ills Co.

LiJ;~itedJ

L.:ts Li:,utcd.

or its s""l;siciiCll:Y) Industrial Grain

Pl'CC:-

TREASURY DEPARTMENT

?OR D-IEEDIATE :\ElliASE
'l\R&'\SU"~Y

DEC IS IOI'! on TI'[,I\JTlm~ DIO;crm:
UNDE3 SJfl:; AH'l'IDmlJ?J!~G ACT'

The Treasury DepartI'lent has detec'rrlined that titaniwr; dioxide;
fro:;;. Japan is beinG) or is lH::e1y to be) sold at less than fair
value vithin thp. neaninz; of the AntidUJ71pinc; Act.
Acco:::dinl!,ly) this case j_s beine; l.'eferred to the United States
~Cariff COr~'llIlission

for an i11J:JI--Y cieterlJincltion.

Notice of the determination and of the

~efe~en~e

of the case

to the ':;.'a:tiff Commission \·rJ.ll be lX:.blished in the Federal 3cC;ister.
The dollar value of inpoi'ts re~eivccl cL~,inc; 1962

He.S

8.ppc'oxi-

TREASURY DEPARTMENT

FOR D-!l-iEDIATE RELEASE
T].EASUiW DECISION ON TITAIJIm~ DIOXIDE
UN1)E~~ THE AIITIDll1PHTG ACT

'2:'he
fro~

~reasury

Departrlent has detenuned that titanium dioxide;

Japan is beinG) or is likely to be, sold at less than fair

val;Jc \,ithi!1 the neaninc3 of the AntidumpinG Act.
Acco:-dincly) this case is beinG .ceferred to the United States
r.'ariff CC:1T:'.ission for an
~oticc

inj~ry

determ.ination.

of the detcrmination and of the

~cference

of the case

to the '::.'2..!:iff Cor;l..'nission viII be pl:blishcd in the Federal

~ec;istcr.

:::TIe dollar value of i:.:po::.'ts received d-.;rinc; 1~62 was app_'o::i-

- 3 -

and exchange tenders will receive equal treatment.

tor differences between the

Cash adjustments will be made

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 ot 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, gi:f't or other excise taxes, whether Federal or state, but
~

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 ot 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
~o

accrue until such bills are sold, redeemed or otherwise disposed of, and such

)ills are excluded from consideration as capital assets.

Accordingly, the owner

)t Treasury bills (other than life insurance companies) issued hereunder need in-

:lude in his income tax return only the difference between the price paid for such
'ills, whether on original. issue or on subsequent purchase, and the amount actually
'eceived either upon sale or redemption at maturity during the taxable year tor
bich the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, precr1be the terms ot the Treasury bills and govern the conditions of their.issue.
opies of the circular may be obtained from any Federal Reserve Ballk or Branch.

- 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 :f'rom 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 company.

Those

3ubmitting tenders will be advised of the acceptance or rejection thereof.
~ecretary
)r

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

~1naJ."
.eS8

Subject to these reservations, noncompetitive tenders for $ 2=00 or

for the additional bills dated

.ng until maturity date on

October_

April .1964

{WOO or less for the

1963

, (

nEt

days remain-

) and noncompetitive tenders for

182 -day bills without stated price from anyone

td¥

,1dder will be accepted in full a.t the a.verage price (in three decimals) of s.cepted competitive bids for the respective issues.

Settlement for accepted ten-

ers 1n accordance with the bids must be made or completed at the Federal
anks on
11

January 30, 1964

6Md

Reserv~

, in cash or other immediately available funds or

a like face amount of Treasury bills maturing

_.;;..Ja_n_u_a_ry~,,:3,=,0T'_1_9_6_4_ _ "

Cash

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,

January 22, 1964

~eBOOooooooeeooe6c

TREASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two series
)f Treasury bills to the aggregate amount of $
~ash

2, 10mOO, 000, or thereabouts, for

and in exchange for Treasury bills maturing January 30, 1964
2.l~4,OOO,

as follows:

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

Q&J

, in the amount

January 30, 1964

in the amount of $ 1,30~0,000 , or thereabouts, represent-

ing an additional amount of bills dated
and to mature

APril. 1964

amount of $ 800'&iik000

October 31, 1963 ,

,originally issued in the

,the additional and original bills

to be freely interchangeable.
182 -day bills, for $

OCDJ

800,0~00

, or thereabouts, to be dated

__~~~~~~1~9~6~4~,
and to mature
Januaw·

July 30, 1964

•

The bills of both series will be issued on a discount basis under competitive
'ld noncompetitive bidding as hereinafier provided, and at maturity their face
mount will be payable without interest.

They will be issued in bea.rer form only,

nd in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and

L,OOO,OOO (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
.108ing hour, one-thirty p.m., Eastern Standard time,

Monday, JanuSJ27, 1964

JDders will not be received at the Treasury Department, Washington.
1St

Each tender

be for an even multiple of $1,000, and in the case of competitive tenders the

ice offered must be expressed on the basis of 100, with not more than three

•

TREASURY DEPARTMENT

January 22, 1964

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 January 30,1964, in the amount of
$2,100,224,000, as follows:
91-day bills (to maturity date) to be issued
in the amount of ~,300,000,000, or thereabouts,
additional amount of bills dated October 31,1963,
mature April 30, 1964, originally issued in the
$800,313,000,
the additional and original bills
interchangeable.

January 30, 1964,
representing an
and to
amount of
to be freely

182-day bills, for $ 800,000,000,
or thereabouts, to be dated
January 30,1964, and to mature July 30, 1964.
The bills of both series will be issued on a discount ba$is 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 Standard
time, Monday, January 27, 1964.
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 rece~~
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 ba~
or trust company.
D-1111

- 2 -

Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
October 31, 1963, (91-days remaining until maturit¥ date on
April 30 1964)
and noncompetitive tenders for ~100,000
or 1esa 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 January 30, 1964,
1n cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 30,1964. 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 from
any Federal Reserve Bank or Branch.
000

CITAUOH

Aleaacler B.m.ltoa Mlard
Joatrph

Bur

, . the fuet .... appoinke" to the position of

Aaa1auat to the a.cretcy of the Treasury for c:.areaalonal

Ialatl__ • 1Ir. Bur oraalHd ad for the last ebree years
~ the J)epartMftt'. Coap'u.1oDal liatson activities •

. . ,1ayecI a _jor role in fo1:'a1latiDg the DepaZ'tMnt'.
~diD.rl1y heavy lea1alatlve

,roar- whJ.eh 1ftelucled

-.Jor revenue acta, a aUJDber of proposals _ipeel to

_rove the aation '. balance of ,a,.eats poaition, the

...,..1 of out_lied .Uvu leat.lation. acta

to .treaathen

lat..a1oaal flMacla1 orpaiatiOll8, aacI _ht cel11D&

eateatt.. legislation.

Hia drive, hi. good will, and his

' • •tMt1v. leaduab.1p .... 1nd1apen••ble to the auccu.

of the Depara.nt·.

proar..

and his record of achievement

1a without ca-ee1er1 in the Hamilton tradition.

-4-

..iaN....

eitiea.

We are all f01"t1mate iDdeed to

_. buc with p-atltude for h1a uaaelftah eervloe co the

'tn••

and to the Couatry. I will

a.encuy D111Ga.

"'j

1Ibo 1. pl'CMb\t.ed f r .

1 11111 read the cltaC1cJD:

,Oft

behalf of

be1a& with us

• 3-

,.,111"'. peaitl_.

that be could DOt have acted nth the

1 ...att. to add t1vU: the Treasury in making this

. .laea aJlfI virtuea.

lie is a man whom two Presidents

have appointed to the . . . job. and who has been

eathua1atieally confirD*l by the Senate to a Federal
poaitlO1'l of great 1sIportance to the financial and

- 2 . . . . . . , .fr$aul,

. . a:....t b1a

tbe

c-are••

.,ia:l_.

who trut h1s

Judaeaent

B1a coll_ year8 &ave him a

..... ~k 1a ~ ao.c:l ecOlM'aiC8. and 111•
p~ovlcled

. . . . . .M

...i .... QUeer

•.,..s..ae.

of the ..-ket ,lace •

. .t

CUt

fJger . . . . . .

~1u17

,.u.c .....

h1ID with the ,raet.1cal

tlw•• quaUf1cat1oa.a 18 another

8flulpa Joe Barr as a .,.t valuable

Be baa • •un 1ut1aot for quickly

nooplaSaa pnpoaa1a aDd 1dea. that are in the beat in-

cenau

of Ilia 00UIlt1:'y, _4 tben conceatratlD& hie total

...., tato belp1Da to attaiD. tho.. _18.

All of ua

. . boe . .ked with bla. and who have dep_ded upon him.
.... tbat if he had not believed

heartily in our tax

~a1.tia tb1e year . . lut. 1n the Deed for strongly

r~·~'l

rJEPAhTMENT

"",;.;":_ngton
FOR RELEASE r

UPON DELIVERY

IlIMaU BY ACnID ftlASUD' UCRErAaY HENRY Ii. F~LD
U PIBIIIIrlJIJ !III A1.IltARDD. ilAHILTON AWARJ)

ft . . . . . 8 . . . . .

»_a 12.

1964. 4:30

. . 4121, . .18 TUASUIl'f BUILDIIC

ena•••

He.

!ate the

Ia:n:'.

,..t

'.11.

'1. . ,.u•• wealth ef ......rlence

aerv1ce iD the Coogr••• provided h1tI with

_ latt.ac- __lMp of bow

that body operates, ad

TREASURY DEPARTMENT
Washington

FOR RELEASE:

UPON DELIVERY

REMARKS BY ACTING TREASURY SECRETARY HENRY H. FOWLER
IN PRESENTING THE ALEXANDER HAMILTON AWARD
TO JOSEPH W. BARR, JANUARY 22, 1964, 4:30 P. M.
ROOM 4121, MAIN TREASURY BUILDING
The Alexander Hamilton Award is the highest recognition we
can bestow for leadership and achievement in the service of the
Treasury Department.
No one has more clearly demonstrated his qualifications
for that award than Joseph W. Barr. His accomplishments have
consistently been in the Hamilton tradition. He has compressed
into the past five years a wealth of experience as an outstanding
public servant -- first as an able and energetic Congressman and,
for the past three years, as Assistant to Secretary Dillon for
Congressional Relations.
Mr. Barr's service in the Congress provided him with an
intimate knowledge of how that body operates, and a host of friends
in the Congress who trust his judgment and respect his opinions.
His college years gave him a sound groundwork in government and
economics, and his successful business career provided him with
the practical experience of the market place.
But over and above these qualifications is another that
particularly equips Joe Barr as a most valuable public servant:
He has a sure instinct for quickly recognizing proposals and
ideas that are in the best interests of his country, and then
concentrating his total energy into helping to attain those goals.
All of us who have worked with him, and who have depended upon
him, know that if he had not believed so heartily in our tax
legislation this year and last, in the need for strongly
stimulating the country's economic growth, and in the necessity
of restoring balance to our international payments position, that
he could not have acted with the vigor and effect he has so
clearly displayed.

- 2 -

Further than that, he is a "man of all seasons ," and :~~~shall
miss his brisk good humor, his quick and sound good judgment, and
his ability to make those qualities a part of the whole team effort.
I hasten to add that the Treasury in making this award has
not been alone in recognizing Joe Barr's values and virtues.
He is a man whom two Presidents have appointed to the same job,
and who has been enthusiastically confirmed by the Senate to a
Federal position of great importance to the financial and business
communities. We are all fortunate indeed to have him as Chairman
of the Federal Deposit Insurance Corporation.
With a sense of profound loss because he must leave us, but
with gratitude for his unselfish service to the Treasury and to
the Country, I will now, on behalf of Secretary Dillon, who is
prevented from being with us by illness, present to Joseph W. Barr,
the Alexander Hamilton Award.
I will read the citation:

CITATION
Alexander Hamilton Award
Joseph W. Barr
As the first man appointed to the position of
Assistant to the Secretary of the Treasury for
Congressional Relations, Mr. Barr organized and
for the last three years supervised the
Department's Congressional liaison activities.
He played a major role in formulating the
Department's extraordinarily heavy legislative
program which included two major revenue acts, a
number of proposals designed to improve the
nation's balance of payments position, the repeal
of outmoded silver legislation, acts to strengthen
international financial organizations, and debt
ceiling extention legislation. His drive, his
good will, and his imaginative leadership were
indispensable to the success of the Department's
program, and his record of achievement is without
question in the Hamilton tradition.

000

• " , . 8 A. M. R.PAPlBS,

1969.

. . Jeeg 2B,

ImSUl.TS

January 21, 19(1.

ftlE.A

:,URJ·::~

WEEKLY BILL

Be fl •••...., DllpartA'at. . . _lIud lan ....n.1ng
~,

'JF'~'

,faM

that the. tenders tor 'l;,wo

smt;;s

ai'

....... to be an add1\1caal issue of th~! bUls ds~'i i)ct.ober 31. 1)6)..
. . ..... eerie. t.o be claW JaIIUU1 )0, 1964, Vtich were ,}ffered:m J~ 22, wre
.. tilt Fe ...raJ. RueI' .. .8uka .. J....r,y 21. 'fenders \'rol"e invited tor ;:":1,3)0,000,001]
. . . . . . . . . of
1a1ll.. and ter $600,000, ~100, or tberean-ou1#& of 182~ ullla •
_

91...,.

....n. at . . ,_ ..ne.

an as follows!

It:1'1&CICIPDD
JIm.

...--...
..,

.•

lL\2-day;:reew.r.r bill;s
mat.~ :'!!.z J.!h 1992 ...
Approx. F.:quiv.
Annual t\.llte
3.600,~ .98.180' -

Approx. t.q\ilYe
A.nnaal i.ia. tie

Moe

".US

).4891-

99.uS

).SOlt -V

".11)

3.620;~

98.110
9b.174

J.S09~

J .61):(, },/

'" fI6 \tJe ___ 01 ~ b1ll.a bid tor et the low:rice was accepted
. . ., tM ___ of 182-dq ltUla bU tor at t.he low price wu ace.pted

• -.as APPLlsD

FOR um

!fRl:!!4

ACC~l"')m ~

F..

)1,)14,000
1,S76,808,OOO

29,7)0,000

~1,JJ9,OOO

U,9S4,OOO

22,$66,000
2>9,511,000

29,610,000

FEDt:R.4L

.i.(h.::.;E:t'~;;,

~
~
16,374,000

nIS'iK!C1S,

AppJ.1ed t or

66l.,818,000:

2,624,000
1,,2S1,621,XO

lL.,080,OOO t
27,)18,000.
ll,186,OOO f

6,96h,OOO
)7,u62,OOO
2,11},000

~o.et.ed"....
$

2,624,000
586,l.t81,OOO
1,964,000
J7,OSO,OO
2,057,000

0,625,000

6.69S,0(~

166,)2S,OO:J

64.,46$,000

21,670,000,

9,)40,000

7,340,000
6,6J1,{)'JO
l),t19,OOO
7,278,000

16,948,000
199,707,000

2l,451,~

18,1)6,000

46,98),000
2),6)8,000

hh,18),OOO

lS,)~8,ooo:

£,2)).000
13,~6S,OOO
9,5t~,OOO

81,9a2,()~
SOa!!62,OOO
. 51A»9,OO)
ill,BU,OOO
IObJ.I
$2.I67,01h,oaJ $1,300,uO.OOO!l fl,m,979,OOO ,~:t.OO,267.000 B/'
.)9,112.000 . . . . . . .UUve tencler8 accepted at. the average price ()f 99.115
,.
$60,166.000 ~Utl. . tenders aceeptod at the a.~~pr1ce;)f 9b.174
....... i . . . ~ tM . . . l.eDgth aDd for th@
U1'4Ount J..nvasted, t,~ return on
. . . . 1aW... WIlld )J"OW'1d8 y1elda Of. ).591, for. the 91-~ bills, and 3. 7tL~, for the
. . . . 11411.. la.rest ratea OIl bi.ll8 are quoted in terms of bank diaeount with the
. . . . htlded io tile r.. ..m, of the bills payable at fflr-turity r,,~thel" trum t.he

F.E
.a

sat_

').f ci~'s re.lat~d to a .3.GO-d~ :fear.
oeI'\1t1.oates, notes, and bon..is are cau:puted in t;.::rmn of
. . . . 011
~ iJmtat.ecl, and relate t.he nl.mllber ,,1' d~va remUning irt an
....... JUillMIR period \0 t.he ac1;ual mabel" of ~s in U:F; ')@riod, ..."ith se!!',iumu.al
_ ••41. . i t aon thaD ODe 00Qt;0ft )eriod 1s tnvolvad.

JA . . . . . . . . . thea lenI'h in actual B'J1Itber

It --"ut.,

to_

TREASURY DEPARTMENT

FOR RELEASE A. M. NE:lSPAPERS,

January 27, 1964

Tuesday, January 28, 1964.

RESljLTS OF TREA::';URY IS wrnKLY BILL OFFERING

The Treasury Department announced last evening that the tenders for two series ~
Treasury bills, one series to be an additiQrul issue of the bills dated October 31, 1
and the other series to be dated January JO, 1964, which were offered on January 22.<
opened a.t the Federal Reserve Banks on Janu8..!"y 27. Tenders were invited for $1,300,
or thereabouts, of 91-0~7 bills and for $800,000,000, or thereabouts of 182-oay billa.
The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:

High
Low
Average

Treasury bills
mnturing April 30, 1964
Approx. Equiv.
Price
Annual Rate
99.118
3.489%
99.113
3.509%
99.11,
3.501%

91-0~y

182-oay lr8&Sury bills
maturing tTu].;: 30, 1964
Approx. Equiv
Price
Annual Rate
98.180
3.60(}%
98.170
3.620%
98.174
3.613%

79% of the amount of 91-oay billa bid for at the low price was accepted
74% of the amount of 182-(l.ay bills bid for at the low price was accepted
TOTAL TEI;DERS fl.PfLIED FOR AND ACCEPTED BY FEDFRAL RESERVE DISTRICTS:
District
~rljed For
Accepted
Applied For
:.:A.:..c;;..;;.&;~;.;...-.....
Boston
$
31,374,000 $ 16,374,000
$
2,624,000 $ 2,624,
New York
1,576,808,000
861,818,000
1,257,621,000
586,481,
Philadelphia
29,730,000
14,080,000:
6,964,000
1,
Cleveland
27,339,000
27,318,000:
37,082,000
37,050,
Richmond
11,954,000
11,786,000:
2,113,000
2,057,
Atlanta
22,~68,ooO
16,948,000
6,825,000
6,695,
Chicago
259,517,000
199,707,000:
166,325,000
84,465,
st. Louis
29,670,000
23,670,000
9,340,000
7,340,
Minneapolis
23,L51,000
18,136,000
8,233,000
6,633,
46,963,000
44,783,000
13,865,000
13,839,
Kansas City
Dallas
23,638,000
15,328,000
9,588,000
7,278,
San Francisco
83,982,000
50,462,000
51,399,000
43,841,
TOTALS
$2,1 6 7,Oli,,000 $1,300,410,000 a/ $1,571,979,000 $800,267,OCO
!I Includes $239,112,000 noncompetitive tenders acce;ted at the avera~e price of 99~.
£I Includes .~60, 766,000 noncompetitive tenders accepted at the aver~.ge price of 98.
!I On a coupon issue of the same length and for the same amount invested, the return
these bills would provide yields of 3.59;b, for the 9l-day bills, and 3.74%, tor t
182-oay bills. Interest rates on bills are quoted in terms of bank discount wit!!
return related to the face amount of the bills payable at maturity rather than'~
amount invested and their length in actual number of days related to a 360-dq;ytl
In contrast, yields on certificates, notes, and bonds are computed in terms ot.
interest on the amount invested, and relate the number of days remaining in an
interest paymf>nt perj od to the actual number of days in the period, with semiaiJDt
compoundin~ if ;~ore than one coupon ~eriod is involved.

r,
(

....

of Treasury bills 8.pplicd for, unless the tenders are accompan-,'Lcd by

an express

guarunty of payrr,cnt by an incorporated. bo.nk or trust compo.ny.

Irmnediately after the closinr; hour, tenders ,-li11 be opened at the Federal Reserve Danks 8.J.'1d. Br;:mches, follOlfinc; v1hich public announcement vlill be m.ade 'by the
Treasury Department of the 81U01mt and. price r3l1£:';e of accepted bids.

tine tenders vTill be advised of the aCCeI)tance or rejection thereof.

Teose submi tTae Secretary

of the Treasury eXl)reGsly reGcrves thc right to accept or reject any or all tenders,
in whole or in part, and his action in 8X'..y such respect shall be final.
these reservations, noncompetitive tenders for

200,000

Subject to

or less vTl thout stated

XOO

price from anyone bidder vTill be accepted in i\.1.:11 at the avera,s;e price (in three
decimals) of 8.cceptcd competitive bids.

Pa~Jent of accepted tenders at the prices

offered must be made or completed at the Federal Reserve Bank~. in cash or other immediately availob1e funds on ___F~eb~ru~a~ryS[~6~,~1~9~6~4~.~~~~~~~~~~~om~~~~~~

ffi

The income derived from Treasury bills) l\Thether interest or gain f:;.~om the sale

'" or other disposition of the bills, d OGS no';:,' 'have any exempt'l on ) "'-'-"
.l.rom
the sale or other dispOSl't'lon

Ool.£>

fT11"ea~'1~o'r
- -' - v

"
ment, as such, under the Interna1 Revenue Co~c

ac.d. lOGS

8"'-':.1.
I.A.~',

ol"11s does not have any special treat_

'95"~.
O~~ ~

T',e
ol'11s are subJ'ect to
~u

estate, inheritance, gift or other excise taxes, v1hether Federal or S~ate) but are

TnIi:J\;:")1)l 'Y. D:I':r:.A,w'i 18IlT
\lr.~.Gl1j,n:3t0i1

Janua,ry 23, 1964 /~

~I\..( -

iF'-'-

'J'110 Tl'cc.::mry DCJ?al"[~mcnt, 1Jy tldG liul)l:i.c noticc: inv:L,;cs tcnderc
r thel'conouts, of'

360
5QeOX

:;i l)OOOt~I~t;OOO )

-dr.y TrcQ.Qury l)j.J.lc, to 1)r; lsrJt1.cd. on a d:t' "-CO'·Ul,l.
_ ~ "bc.Gis unclc:c

Jl.ll)c1;ii:,ive c..:.'1c1 noncom:pc'cltlv2
~l':i.CG

:'01'

/~ l' J

b:.i.<.1din~ 0.:; hel'c:tnn.:~tcr

lTill be elated _ _F_e_b_ru_a_ry",:;",":"",<,"6.:..,_1.:9..:6..:4~_ _ _ ) end.

p:;:ovidcd.

mc.tul'e

lTl J.l

Thc bille of this
_J~a_n~u~a_ry~_3~1~,~1~9~65~_____ ,

OOOC

The:/ ITl.ll be i::;::;uecl in
)II]

on]y) '.'11(t in dcn01iLlnat :;,0113 of

:;a, 000, :/j, 000,

oe2.1'CI'

:;.;10) 000 J :;;50 J 000 J :;;100) 000 J :)500) 000

l(~ ::iJ.,OOO, 000 (r,lcd:.m':i.ty value).

Thursday, January 30. 1964

,11 not be rccci vcd c.t the 'l'reo.cury

even l:mJtiplc of

:;il, 000,

DeJ?~l.l·~.::,ment,

cmu. in t.lle caGC m.~

tea

llo.:::.hinc;ton.

CO;i1l)c'L:i.

E::'..ch tcnc:.cr must be for

U.vc -Lcndc:cG the In'icc of'fcl'ccl

,oJ~ be C;;:P:CCf,j sed on thc bO.G:i. s 0:1.' 100) ,rIch not ,'[()~'-C tJlOn threc dccir.1o.ls) e. C,} Ga. G25 •

;'J)chcs 011 c.l'l?l:i.co.t:Lol1 thcl'ci.'or.

~le<l the

lle.r.1CG 0:2

.... '
~ '''',I
v.l. CUi..10llS

, 1]
'."L
..

the CtlGtomcr'c
no'c' b c

8.1'C

."
1)liO
PC1',i1J:(;i,;CC

~;ct .L'o::l:.h in Gll,eh tC;1Clcl's.
~;u1"
)i.1.l.'C

1 l' C. ey.c"',I')~·
'X: J'l(,:;:
__ -_ v

O[;11c1's th;.:n oc,:lki n C

fOl' +11r'~ll'
v
'---

o',m

1
!'l.CC01.
LlY:'.
_.
- v

~ders 1r111 be l'ccci vcu. uitllOut dcpo:,;.Lt J.~1'0li1 inco)~J?ol'o.tcd l)o.nl~s o.nd trust comp011icG'

1 froi;l ):espons:i.1Jlc Mel rccoGnized dco.lcl'G 5.n

invp.C;'C;';lcm;

Gccul'itics.

Tenders i'rom

TREASURY DEPARTMENT

January 23, 1964
FOR IMMEDIATE RELEASE
TREASURY OFFERS $1 BILLION ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
for $1,000,000,000, or thereabouts, of 360-day Treasury bills, to be
issued on a discount basis under competitive and noncompetitive
bidding as hereinafter provided. The bills of this series will be
dated February 6, 1964, and will mature January 31, 1965, when the
face amount will be payable without interest.
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000,
$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 Standard time,
Thursday, January 30, 1964. Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an even
multiple of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three decimals, e. g., 99.925. Fractions may not be used.
It is
urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Banking institutions generally may submit tenders for account of
customers provided the ~ames 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 accompanie(
by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
will be made by the Treasury Department of the amount and price range
of accepted bids.
Those submitting tenders will be advised of the
acceptance or rejection thereof.
The Secretary of the Treasury
expressly reserves the right to accept or reject any or all tenders
in whole or in part, and his action in any such respect shall be
final.
Subject to these reservations, noncompetitive tenders for
$200,000 or less without stated price from anyone bidder will be
0-11l3

- 2 ccepted in full at the average price (in three decimals) of accepted
ompetitive bids. Payment of accepted tenders at the prices offered
lust be made or completed at the Federal Reserve Banks in cash or
Jther immediately available funds on February 6, 1964.
The income derived from Treasury bills, whether interest or gain
~rom the sale or other disposition of the bills, does not have any
~xemption, as such, and loss from the sale or other disposition of
~reasury bills does not have any special treatment, as such, under the
m~rnal Revenue Code of 1954.
The bills are subject to estate,
.nheritance, gift or other excise taxes, wheLrer Federal or State, but
Ire exempt from all taxation now or hereafter imposed on the principal
lr interest thereof by any State, or any of the possessions of the
Jnited States, or by any local taxing au thori ty. For purposes of
:axation the amount of discount at which Treasury bills are originally
;old by the United States is considered to be interest. Under
;ections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954
:he amount of discount at which bills issued hereunder are sold is
lot considered to accrue until such bills are sold, redeemed or
)therwise disposed of, and such bills are excluded from consideration
IS capital assets. Accordingly, the owner of Treasury bills (other
:han life insurance companies) issued hereunder need include in his
lncome tax return only the difference between the price paid for such
lias, whether on original issue or on subsequent purchase, and the
Imount actually received either upon sale or redemption at maturity
luring the taxable year for which the return is made, as ordinary
;ain or los s .
Treasury Department Circular No. 418 (current revision) and this
lot ice , prescribe the terms of the Treasury bills and govern the
:onditions of their issue. Copies of the circular may be obtained
:rom any Federal Reserve Bank or Branch.

000

Removal Notice
The item identified below has been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.

Citation Information
Document Type: Article

Number of Pages Removed: 2

Author(s):
Title:

A Letter from Douglas Dillon: The Administration Comments on Proposed Foreign Security
Tax

Date:

1964-01-27

Journal:

Investment Dealers' Digest

Volume:
Page(s):
URL:

Federal Reserve Bank of St. Louis

https://fraser.stlouisfed.org

FOR REIEASE A.M. NEWSPAPERS"

MONDAY, J~1UARY 27, 1964

SECRETARY DILLON OOMHENTS ON

INTEREST EQUALIZATION TAX

The attached reprint frrnn the Investment Dealers' ~igest of
January 27"

l~ contains

a letter from Secretary of the Treasury

Douglas Dillon giving the administration's comments on the proposed
foreign security tax.

~\!

(/'

TREASURY DEPARTMENT

January

FOR RELEASE A.M. NEWSPAPERS
MONDAY, JANUARY 27, 1964

SECRETARY DILLON COMMENTS
ON INTEREST EQUALIZATION TAX

The attached reprint from the Investment
Dealers' Digest of January 27, 1964 contains
a letter from Secretary of the Treasury
Douglas Dillon giving the administration's
comments on the proposed foreign security tax.

000

D-1114

Removal Notice
The item identified below has been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.

Citation Information
Document Type: Article

Number of Pages Removed: 2

Author(s):
Title:

A Letter from Douglas Dillon: The Administration Comments on Proposed Foreign Security
Tax

Date:

1964-01-27

Journal:

Investment Dealers' Digest

Volume:
Page(s):
URL:

Federal Reserve Bank of St. Louis

https://fraser.stlouisfed.org

- 23 Meanwbi:~.

I should emphasize again that, valuable as these

studies of international liquidity will doubtless prove to be, their
relevance for the present United States balance of payments situation
is very limited.

There is no prospect of somehow obtaining relief from

~_~~.~~~-6- 'l. '/~"./
the urgent necessity of HI Ui i 88 our- -b;lance of

payments deficit.

The S4;ndi ~s now being coirdttet.e£i..ar-e based on the prospect that our
balance of payments deficit will in fact be ended.

The responsibility

inescapably rests upon us to make that assumption an accomplished
fact.

- -

-,.

- ------------------\,

\
/
)

~-I'-'
l

--.v- l

------------,/ /,

-~'~~:,

./"

----

- 22 -

examining the present system as it has heretofore evolved, assessing
the likelYineeds of the future, and developing possible approaches
toward meeting these needs!;;'f@r'review

~,
"-:ZZ::L"YIJ.

~lleJl''''

'~"'.l.

'J-~V-,(,t..... ,(,\.(.'

'~LL~lWC'-

the

~~nance

l11:inister&; next

-au tt.~lUU{~

, n) nJ

•_

' " "

J\A tv

u.1..-

1lA/I'V---

,,Ii..

r('"

I,:.()"e

At present, this working group is still in the process of

isolating the major issues in this vast and complicated area

thro~gh

the process of frank and full discussion, with each representative
setting aside the details of his daily work

f6~

se¥erBl 4BYS

so that he can participate inteasively in this review.
,

B~ftn~

The group

n..

• t'I .
'V

also dra~upon the resources of the International Monetary Fund,
the Bank for International Settlements, and the Organization for
Economic Cooperation and Development,. providing further assurance
of a thoroughgoing, realistic appraisal.
stage of

It is expected that the

more active negotiation, preliminary to,any specific recom-

mendations ~'review by the finance ministers themselves, will be

~~1tCL6
reached

~:i:n~·j~~08.

- 21 -

helped to focus attention on the potential problems that may arise
over the years ahead in assuring an adequate supply of international
liquidity once the United States is no longer supplying dollars on
balance to the rest of the world.

In order that these problems may

be anticipated and the further evolution of the international monetary
system guided along constructive and agreed lines, the same Group of
Ten nations that in 1962 agreed to supplement the ordinary resources
of the IMF with the Special Borrowing Arrangements," agreed",,-l:ast--8epte1fioer

this end, a working group of deputy finance ministers from
each country has been established under the chairmanship of Under
secretary Roosa, and has been meeting periodically since October.
These senior

r!IINlt#i:) officials,

each accompanied by representatives

of their central banks, have been assigned the task of systematically

- 20 -

1963 also saw a marked decline in the drain on our gold stocks.
To some degree, this reflected the added supply of gold reaching
world markets from RTII·~ ~/the continued usefulness of the informal
cooperation among leading countries in dealings on the London gold
But in
addition, foreigners -- and particularly private foreigners -- chose
to build their dollar balances at a more rapid rate.

For the twelve

'months as a whole, our loss of gold came to $461 million, well below
the average of $873 million in 1961 and 1962 and the much larger
outflows, averaging nearly $1.7 billion, of the years 1958 to 1960.
This in itself is a sign of sustained confidence in the stability of
the dollar and in the strength of existing monetary arrangements.
this strength can be preserved only if there is continuing evidence
fuat our balance of payments is indeed under firm control.
llie International Payments Mechanism
The prospect of the elimination of our deficit has, in turn,

But

- 19 -

The .. encouraging developments deserve mention.

But at the same

time, we must all recognize tha t the gains are still far too limited,

th.~

eet*

temporary improvement is not enough.

The need for resolute

OIl the balance of payments problem is no less a matter of

.t1Inal concern than it we s six months ago.

Action on the Intere s t

IpMlisation tax must be completed/without,crippliog me&1f~cat~on8
It...CeI\!ess;gns
~8m

~~.. weul~'-'ft'ede

.its

effecUv.enus/~

The comprebensive

announced last July to reduce the balance of payments cost

_ turmilitary and foreign aid programs must be pressed forward with
~i8hed

vigor and resolution to realize the anticipated sedBugs

Jr'1 billion on Government payments abroad by the end of thi s year.
~

imal1native and energetic

effort~

by business and Government to

"'ulize on our fine record of price stability anc to
~tl

eh~anJ

are particularly necessary if we are to move into early

III-lltl ba lance.

export

- 18 -

in somewhat smaller volume than in 1962, because of smaller debt
prepayments and smaller advance payments on military exports.
~eless,

Never-

our over-all deficit -- measuring the increase in our liquid

liabilities to foreigners and the decline in our reserves -- fully
reflected the sharp improvement in the second half of the year.
')

~!>,~,. ~-

the

·/"'(t'~"r;.:;,

~",".,/,-.,',,1

specia~~edium-term~convertib1e

Treasury securities sold to foreign

official institutions are considered a balance of payments receipt
rather than a liquid liability, preliminary reports indicate that
the over-all deficit for 1963 should be about $1.9 billion, as com-

pared to $2.2 billion last year and $2.4 billion in 1961.
$700 million of SF?d"l'

If the

dsttnie issues sold during the year are

disregarded, the over-all deficit would be about $2.6 billion.

Thus,

despite the sharp deterioration in the early months of the year, we
gere able in 1963 to maintain the pattern of improvement from the
-pl)"

7~"'if'"' s '""
j

(,'

Y"",

(11:/,.

"" oisikeM:s-r-t:be 195811960

period~,

*b tuilP

"'I'j'14iii~.

- 17 Balance of Payments Improvement

Th~"_decTi.q~ in:tt~~?pita1

outflow after July were

refl,e.e-t"ed in a ~iibstantiat"improvetnent in 'our el].t:tre balance of
fayme-rftS-l'0s-iUon.

The deficit on regular transactions, after reach-

ing the clearly unsustainable seasonally adjusted annual rate of over

$5.0 billion during the second quarter, dropped to a rate of $1.6
billion during the third quarter.

While final data for the full

year are still lacking, this third quarter rate appears to have been
maintained or ,improved

during the fourth quarter.

8;=tb4

5 meorS:!Jr~~j:he

deficit, during the entire second; half of 1963

i1as the smallest for any equivalent period since 1957.

I wIJ.'ole,

For the year as

ttl&< deftci::t . . ::ar1.'iWsg,*.a~-..."t:I!!!an:e;aeei:onb\ dppears to have been

'educed to about $3 billion, roughly $600 million below the figure for

Special intra-Governmental transactions t~ have the effect of
)sorbing a portion of the dollars flowing into foreign hands ,were

- 16 become more fully capable of meeting the financial needs generated

by their own growth.

In this connection, the Treasury has recently

completed an intensive survey of European capital markets and

provided it to your Committee for publication.

I am hopeful that

this review of those markets will be useful 1n developing greater

understanding

i<k/~::i&/iO~itr-~ of

potential for progress.

both the problems and the

- 15 curtailing the outward flow of capital was strikingly demonstrated
during the second half of the year, when reductions in the outflow
of private capital were largely responsible for the dramatic improvement
in our payments position.
The Interest Equalization Tax is a transitional measure.

The

fundamental solution to the problem of long-term capital outflows must
be found in other efforts at horne and abroad.

One essential is to

strengthen our own economy, so that investment in the united States
is more attractive for our own citizens and foreigners alike.

;pecifically, one of the important benefits of the tax reduction program
Till be to increase the profi tabili ty of domestic investment and to

rene rate more outlets at horne for our savings.
At the same time, the danger of massive demands from abroad
c'<~

v l _/

.-.:11' ~ ,..';t,

.-'

,~~~

";",,

Onverging on our market ~ be-Xfelieve'd by improvement in the
apital markets of other industrialized countries so-tha·t,.....-tQey .··eafl

- 14 President Kennedy on July 18 announced the proposed Interest Equaliza-

tion Tax.

By increasing the cost of capital to foreigners borrowing

in our market by the equivalent of about 1% per year, the effects of

this excise tax in diverting foreign borrowers to other markets are

closely analogous to an lncrease in the entire structure of domestic

interest rates.

No one can be happy with the necessity of taking action of

this type to restrain the outward flow of capital.

But the need

qas clear i flotations of new foreign securities in our market had

~eached

an annual rate of over $2 billion a year during the first

talf of 1963, almost double the already high rate of 1962 and more
/Wiv"~

:han triple the;:normal volume of the years from 1959 to 1961.

More-

veri there were no indications that the flow would fall back to

arlier levels of its own accord.

The effectiveness of the moderate upward pressures on the short!~ rate structure and the proposed Interest Equalization Tax in

- 13 -

gradual, but steady, progress we had been making ln other directions

to restore balance in our international payments was overwhelmed.

prompt and effective action to staunch this capital outflow could

not be deferred.

Therefore, use was made of the traditional tools

of monetary policy -- including a ri;se in the Federal Reserve discount

rate from 3 to 3-1/2 per cent in July -- to bring our structure

Jfshort-term money market rateJinto better alignment with those

?revailing abroad.

But the enormous volume of our savings seeking long-term

.nvestment outlets clearly indicated that any attempt to bring

!bout the sharply higher long-term interest rate lmred s required

restrain the outflow of long-term capital to

ould not have been practicable,

an~)~8 .~t~mp~

mO~e

sustainable amounts

would have necessitated

degree of credit contraction entirely out of keeping with our

~estic

economic situation.

It was in these circumstances that

- 12 -

Interest

~ates

and the Eroblem of Jrnternational 6apital f10ws

These market developments and

appropriate debt management

monetary policies cannot, of course, be fully appraised without

considering their relationship to our pressing balance of payments

problem.

In a world of convertible currencies and increasingly

free capital movements among countries, no industrialized nation

~an

expect to keep its own money markets entirely insulated from

ievelopments in the principal markets abroad.

Certainly, develop-

lents during 1963, when swelling outflows of long- and short-

erm capital for a time threatened to undermine the dollar and

ring unbearable strains on the international financial system,

ave pointed unambiguously to the need to ach:iaTe a reasonable

llance between the costs and returns on capital in our market and

lose abroad.

The recorded outflow or(capital in the second quarter of 1963

ached an annual rate o£ about $5.8 billion.

As a result, the

- 11 -

)enefiting from the stimulus of tax redUCtion, should generate still

ligher demands for credit from businezs and individuals, just as

R&clg:et!aefi-eM1 a fact that should help relieve the concern that has

leen expressed in some quarters that financing requirements will outpace

lur savings potential.

with a surplus in trust accounts and the normal

'~'A.
/
\<.-.

,urchases of the Federal Reserve, foreigners and others)

.~4"fi+J,
q_"

'A
>"Ih·-

absorb~

reasury securities, the residue to be financed in the market should

~?e

?L--7~~= _~ ~(L~--=--:~~-~

e.L3~ -:-L--~

e quite manageable .aesfjiseelthe usual large seasonal n'eeds ie<Eel! in

,.. ~7C;
le--i'ell!f'.

e~7p-~~~

7"->--;;'0

~/~~ .e~7~~-..:t~--.. '-'~~l

Moreover, the volume of savings seeking long-term investment

Itlets has remained very large throughout the expansion period, and

should not be forgotten that the higher incomes generated by
~.-;;;

duced taxes and Jr'

large this flow.

t ,':

g"'"

levels of business activity will further

- 10 -

:lctivity is at new peaks -- a sharp contrast to the pattern of tightening

markets and declining volume characteristic of earlier postwar expansion.

Market yields on state and local government securities, while
tending to ri~~)\during the latter part of the year, averaged lower

than during all but one of the past 7 years, while the volume of

financing reached a new record of

,PI/

p.7.' 'billion.

1I1_ _ _

Rates charged by

Janks for business loans remained stable at the lower levels reached

In the last recession, and new corporate bond financing remained

lvailable at rates very close to -- and in the case of medium quality
~4~

!redits apPlE etMl,y below -- the levels prevailing when the current

,xpansion began.

It is against this background that we intend to continue to

inance our future deficits in a manner that will avoid contributing

iilier to a buildup of excessive liquidity in the economy or to

lnecessary pressures on key market interest rates.

In doing so,

are of course conscious of the fact that an expanding economy,

- 9 -

~~~!-/{p.e~/ong~st

'or

~ny

J6ecember

since~.S'9 Mo1l€&V~ .lhe

entire

increase in the debt was placed outside the commercial banking system.

:ommercial bank holdings of Government securities actually declined

luring calendar year 1963 by $3~ billion and their total holdings of

~vernment

~urrent

securities today are only I per cent higher than when the

expansion got under way.

Last year also saw a record volume of long-term credit flowing

.nto the private sector of the economy and to state and local governments.

his accelerated flow provided ample evidence that our progress in

estructuring the Federal debt has not inhibited economic activity.

~rtgage

rates -- perhaps the most significant of all interest rates

terms of their potential impact on private spending -- actually

lclined, even while almost $30 billion of additional mortgage credit --

far the largest amount in any single year -- was being made available

liberal terms

builders and homebuyers.

Today, mortgage rates are

low as at any time since the recession year of 1958 and building

- 8 ~over $14-3/4

billion of new marketable Treasury securities maturing

in more than five years, including $3-3/4 billion maturing in more than

years, were placed with individuals and institutional investors

luring calendar year 1963.

On two occasions long-term bonds were sold
/'1

~ ~/'
__

through competi ti ve bidding.

The further development and refinement of

advance refunding technique, which provides a means of encouraging

.nvestors to extend their commitments in Government securities with a

linimum impact on the capital markets, _

greatly facilitated our

The net result was a reduction of $3 billion in the

:le decision to concentrate much of our new cash financing in the bill

lrket to help keep short-term interest rates in line with those abroad.
~,

~ .i~/r{ , -

--',-

"":7";"" ,-" (- _",
/

biJlE!l.i!H!I;

in the short-term debt H-t.~ ~~ absorbed without
c ___~u,,~

~ating

excessive

liqUiditY;~·/fac.t

symbQlized

¥y

a further increase

~a:t:~ag~'\ncrt:uri~-'Of all our marketable debt tn five years and

- 7 -

-l'ax Reduction,

the Budget, and Financing the Deficit

The tax reduction program reflects a deliberate decision to rely

upon the private sector of the economy to provide the motive force for

the more rapid economic progress that our situation demands.

The

essential corollary of that decision -- firm restraint on the total

of Federal spending -- is unambiguously statedin the President's budget.

~ith

expenditures in check, all the added revenues that will be generated

economic expansion during fiscal 1965 can be devoted to reducing the

jeficit and putting us securely on the path toward early restoration of

)udgetary balance.

When joined with continued sound financing of our

:ransitional deficits, this budgetary outlook offers assurance that

leither inflationary excesses nor capital market congestion will impede

lur progress toward the achievement of full employment.

The events of the past year have clearly illustrated that we can

oundly finance our budgetary deficit during an orderly advance in

lSiness activity without bringing heavy pressures on the capital market.

!""'

. . ", ""

- 6 ,-,/~
~

While drastically

.. ~

"",

.~.,",

cutting~

excessively high, war-born rate

schedules, the tax bill gives its greatest proportional benefits to
low income individuals.

It imposes a smaller proportion of the

total tax liability on lower income taxpayers.

And, in the Senate f~4i' :.C

OhllU; (;e.,(

version, which in this respect is much to be preferred, the bill
gives no further benefits to capital gains.

For all those reasons, there

can be no question but that the tax bill will mean a marked and healthy
i~rovement

in our income tax structure.
, '.
",

,." • . . '"l'

,.,~

,\, ,

Expectations that the tax program will be enacted have already
helped

to account for the strength of business activity in recent

months.

But expectations of tax reduction cannot alone provide the

needed stimulus.

Not until the bill is actually passed by the Congress

and signed by the President

can withholding rates be reduced and the

new spending power generated for consumers, at a rate of close to $800
Dillion per month, work its way through the market into expanded employDent.

And not until then can our citizens plan ahead in the sure know-

ledge of greater after-tax returns for new investment and productive
lffort. V

, f

- 5 -

tax load.

Taxpayers in the bottom income group -- earning $3,000

or less -- will get three times the percentage tax reduction of
iliose earning

$50,000 and up.

Those who have suggested that the individual tax reductions
favor the upper income groups forget that, by the very nature of
our steeply progressive tax rate structure, any across-the-board

'r/

JC"

reductions must inevitably mean greater increases
... _,'.",....t-~~

•

/,. ,,-1, ..... 1
•

' ... ~

';"

• •

__ ~

I,.

,/:~

' . - J ; . ·r~· ~
. r"-~
"f'"

in~after/1

tax income$ in,rm4.SiW19 ... e 6 £ I

brackets.
/' ~.

To achieve equal percentage
':".;6., ::, .. ,/,,,,(.. (". ~,,;:C.... :-

increases in after-tax income would require

.rf"."".
,,:' """!'>

maintena;~~-~of1ra ~ ~ '.

rate of 90 or 91% ....... total abandonment of any thought of acrossthe-board reductions in our current excessively high rates.
would be to abandon

But this

one of the chief objectives of the bill -- a
L>

~ ,of"

~-<--

.e, _;$ < e. t.'
-<

t'/''r
I

jecisive shift away from the~high marginal rates that inhibit incentives
lnd serve as a source or excuse for many of the distortions in our
ax structure.

- 4a -

Consequently, the combination of
rate reduction and structural reform will shift to the higher income
brackets a somewhat larger share of the

- 4 reductions for those at the bottom end of the scale.
/

Although most

families pay little if any income tax, those that do will obtain

substantial relief.

For families with total personal income of $3,000

or less and for individuals with personal income of $1,500 or less -~

~cluding not only sources of income reported on tax returns but also
social security and other transfer payments -- taxes would be cut by
an average of

QJ18: ~%.

And many of the 1.5 million taxpayers who,

under the bill, will no longer pay any income tax whatsoever are in
this group.
Over-all, the bill, as reported by the Senate Finance
Conunittee, provides a net reduction in personal tax liabilities of
nearly $9.5 billion, or about 80% of the total tax rel~ provided.
Phe great bulk of this money will move directly into consumer markets.
Iver $5.5 billion of the net reduction in personal tax goes to taxpayers
ith incomes of $10,000 or less.

These people -- 85% of all taxpayers -/

. v( t.--p;t-e

)t\1

u, -t..-<

--,;/

J::./

'/-' iY~;1.. / 7"C~

"'7~

-Lv -~
-

"z-~<~>,,:,.,,"'L ,"

carry 50% of the individual tax loa. d. ' ,/They will receive 60% of the

- 3 -

Tax reduction is not a cure-all.

To overcome stubborn pockets

of poverty, lack of adequate training for too many workers, and ...

~al

barriers to equal employment opportunity will require the

kind of coordinated and many-sided effort -- by business and labor
as well as by the Federal Government, by states, and by local communities -- that the President has outlined for us.

But tax reduction,

with its stimulating effects permeating into every sector of the
economy, must be the centerpiece of any effective attack on unemployment and poverty, for the more specific remedies for these problems
can be fully effective only in a more buoyant economic environment -an environment in which a trained man can find employment for his
skills and in which there are strong economic incentives for upgrading
workers and overcoming barriers of race and color.
The tax bill as passed by the House and approved by a bipartisan
12-5 vote in the Senate Finance Committee provides particularly large

_a~,f~,!b~hec---nee'crs- afour -soctety • _,A£ )fear eRe more
,;....-.."

<.~

',r-,
l"

'II'-~ ~ ..~.J ~~

unemployed~a~ :a~ ~hecase
The true measure of our task is

.......

l" r"".,."I'-,. "'...-"

. , a yea:

not~~the 5~%
--&'" ......-

of our

--{V~ -:

labor~that

jobs

is currently unemployed.

In addition, we must provide

for 'Z.:~::r;::::;t,rk::':~ :;l~~e entering

the labor force over the remaining years of this decade, and for
those further millions who will be displaced from existing jobs by
tiw

8il!'ee=e~ 'PBfli~-

p. ."'--t!r:E- mechanization and automation.

A broad consensus has been reached among leaders in all sectors
of our economy -- and I believe within the Congvess too -- that

thoroughgoing tax reduction, lifting from the private economy the
shackles of wartime tax rates, is the greatest single step that can
le taken to speed the creation of new job opportunities.

TREASURY DEPARTMENT
Washington

FOR

'tP#V

DELIVERY

RELEAS~aw

STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE
JOINT ECONOMI~COMMlTTEE
_ ?,.S
JANUARY
,196) ______
10:00 A.M.
~

Mr. Chairman and Members of the Joint Economic Committee:

developments for the broad range of financial and economic policies -both domestic and international -- with which I am directly concerned.
Unfilled Needs at Horne
The current advance in business activity -- now extending over
three full years -- has remained remarkably well balanced.

But I think

it is now abundantly clear to all that we cannot be satisfied simply to

head off a new recession, or to continue with the current gradual
For, despite the growth in the economy last

expansion in output.

/ / /
----

...

._._.

TREASURl DEPARTMENT
Washington
FOR RELEASE:

UPON DELIVERY

STATEMENT OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE
JOINT ECONOMIC COMMITTEE
JANUARY 28, 1964
10:00 A.M.
Mr. Chairman and Members of the Joint Economic Committee:
The performance of the American economy during 1963 has alread}~lc
been reviewed in detail in the Economic Report.
shall not dwell upon this past record today.

Consequently, I

Instead, I should likf

to explore with you some of the implications of recent and
prospective developments for the broad range of financial and
economic policies -- both domestic and international -- with which
I am directly concerned.
Unfilled Needs at Home
The current advance in business activity -- now extending over
three full years -- has remained remarkably well balanced.

But I

think it is now abundantly clear to all that we cannot be satisfiec::f
simply to head off a new recession, or to continue with the current
gradual expansion in output.

For, despite the growth in the

economy last year more of our citizens were unemployed during
December than was the case a year earlier.
better.
D-lllS

We can and must do

- 2 The true measure of our task is not simply the 5-1/2 percent
of our labor force that is currently unemployed.

In addition, we

must provide jobs for the rapidly increasing number of younger
workers who will be entering the labor force over the remaining
years of this decade, and for those further millions who will be
displaced from existing jobs by mechanization and automation.
A broad consensus has been reached among leaders in all sector
of our economy -- and I believe within the Congress too -- that
thoroughgoing tax reduction, lifting from the private economy the
shackles of wartime tax rates, is the

grea~est

single step than can

be taken to speed the creation of new job opportunities.
Tax reduction is not a cure-all.

To overcome stubborn pockets

of poverty, lack of adequate training for too many workers, and
remaini~barriers

to equal employment opportunity will require the

kind of coordinated and many-sided effort -- by business and labor
as well as by the Federal Government, by states, and by local
communities -- that the President has outlined for us.

But tax

reduction, with its stimulating effects permeating into every
sector of the economy, must be the centerpiece of any effective
attack on unemployment and poverty, for the more specific remedies
for these problems can be fully effective only in a more buoyant
economic environment -- an environment in which a trained man can
find employment for his skills and in which there are strong
economic incentives for upgrading workers and overcoming barriers
of race and color.

- 3 -

The tax bill as passed by the House and approved by a bipartisan
12-5 vote in the Senate Finance Committee provides particularly
large reductions for those at the bottom end of the scale.

Although me

low income families pay little if any income tax, those that do will
obtain substantial relief.

For families with total personal income

of $3,000 or less and for individuals with 'personal income of
$1,500 or less -- including not only sources of income reported on
tax returns but also social security and .other transfer payments -taxes would be cut by an average of more than sixty percent.

And

many of the 1.5 million taxpayers who, under the bill, will no
longer pay any income tax whatsoever are in this group.
Over-all, the bill, as reported by the Senate Finance Committee,
provides a net reduction in personal tax liabilities of nearly
$9.5 billion, or about 80 percent of the total tax reduction
provided.

The great bulk of 'this money will move directly into

consumer markets.

Over $5.5 billion of the net reduction in

personal tax goes to taxpayers with incomes of $10,000 or less.
These people -- 85 percent of all taxpayers
of the individual tax load.

now carry 50 percent

Under both House and Senate versions of

the bill, they will receive 60 percent of the individual tax
reduction.

Consequently, the combination of rate reduction and

structural reform will shift to the higher income brackets a somewhat
larger share of the tax load.

Taxpayers in the bottom income

group -- reporting earnings of $3,000 or less -- will get three
times the percentage tax reduction of those earning $50,000 and up.

- 4 Those who have suggested that the individual tax reductions
favor the upper income groups forget that, by the very nature of
our steeply progressive tax rate structure, any across-the-board
rate reductions must inevitably mean greater increases in the aftertax incomes of those in the higher brackets.

To achieve equal

percentage increases in after-tax income would require maintenance
of a rate schedule much as at present, running up to a top rate of
90 or 91 percent.

It would mean total abandonment of any thought of

across-the-board reductions in our current excessively high rates.
But this would be to abandon one of the chief objectives of the
bill -- a decisive shift away from the excessively high marginal
rates that inhibit incentives and serve as a source or excuse for
many of the distortions in our tax structure.
While drastically cutting these excessively high, war-born rate
schedules, the tax bill gives its greatest proportional benefits to
low income individuals.

It imposes a smaller proportion of the

total tax liability on lower income taxpayers.

And, in the

Senate Finance Committee version, which in this respect is much to
be preferred, the bill gives no further benefits to capital gains.
For all those reasons, there can be no question but that the tax
bill will mean a marked and healthy improvement in our income tax
structure.

It will not by any means remove remove all the

inequities in our present tax law.
do more.

I wish it had been possible to

But, even so, there can be no doubt that the present

bill will mark a significant step in the direction of greater equit~

- 5 -

Expectations that the tax program will be enacted have already
helped to account for the strength of business activity in recent
months.

But expectations of tax reduction cannot alone provide the

needed stimulus.

Not until the bill is actually passed by the

Congress and signed by the President can withholding rates be
reduced and the new spending power generated for consumers, at a
rate of close to $800 million per month, work its way through the
market into expanded employment.

And not until then can our

citizens plan ahead in the sure knowledge of greater after-tax
returns for new investment and productive effort.

That is why the

President has been so insistent that Congressional action on the
bill be completed just as rapidly as possible.
Tax Reduction, the Budget, and Financing the Deficit
The tax reduction program reflects a deliberate decision to
rely upon the private sector of the economy to provide the motive
force for the more rapid economic progress that our situation
demands.

The essential corollary of that decision -- firm restrain

on the total of Federal spending -- is unambiguously stated in the
President's budget.

With expenditures in check, all the added

revenues that will be generated by economic expansion during
fiscal 1965 can be devoted to reducing the deficit and putting us
securely on the path toward early restoration of budgetary balance
When joined with continued sound financing of our transitional
deficits, this budgetary outlook offers assurance that neither

- 6 inflationary excesses nor capital market congestion will impede our
progress toward the achievement of full employment.
The events of the past year have clearly illustrated that we can
soundly finance our budgetary deficit during an orderly advance in
business activity without bringing heavy pressures on the capital
market.

Over $14-3/4 billion of new marketable Treasury securities

maturing in more than five years, including $3-3/4 billion maturing
in more than ten years, were placed with individuals and
institutional investors during calendar year 1963.

On two occasions

long-term bonds were sold through competitive bidding.

And the

further development and refinement of the advance refunding
technique, which provides a means of encouraging investors to
extend their commitments in Government securities with a minimum
impact on the capital markets, greatly facilitated our accomplishment
The net result was a reduction of $3 billion in the outstanding
1-5 year debt despite the effects of the passage of time in bringing
more issues into that category.

Overall there was a further increase

in the average maturity of our marketable debt to five years and one
month, the longest for any December since 1955.
Debt maturing within one year was increased by $2 billion,
reflecting the decision to concentrate much of our new cash
financing in the bill market to help keep short-term interest rates
in line with those abroad.

This e~gement of the short-term debt wa

easily absorbed without creating excessive liquidity.

- 7 -

The entire increase in the debt was placed outside the
commercial banking system.

Commercial bank holdings of Government

securities actually declined during calendar year 1963 by $3-1/2
billion and their total holdings of Government securities today
are only one percent higher than when the current expansion got
under way.
Last year also saw a record volume of long-term credit flowing
into the private sector of the economy and to state and local
governments.

This accelerated flow provided ample evidence that

our progress in restructuring the federal debt has not inhibited
economic activity.

Mortgage rates -- perhaps the most significant

of all interest rates in terms of their potential impact on private
spending -- actually declined, even while almost $30 billion of
additional mortgage credit -- by far the largest amount in any
single year -- was being made available on liberal terms to
builders and homebuyers.

Today, mortgage rates are as low as at

any time since the recession year of 1958 and building activity is
at new peaks -- a sharp contrast to the pattern of tightening
markets and declining volume characteristic of earlier postwar
expansion.
Market yields on state and local government securities, while
tending to rise moderately during the latter part of the year,
averaged lower than during all but one of the past 7 years, while
the volume of financing reached a new record of $11 billion.

- 8 -

Rates charged by banks for business loans remained stable at the
lower levels reached in the last recession, and new corporate bond
financing remained available at rates very close to -- and in the
case of medium quality credits somewhat below

the levels

prevailing when the current expansion began.
It is against this background that we intend to continue to
finance our future deficits in a manner that will avoid contributing
either to a buildup of excessive ,liquidity in the economy or to
unnecessary pressures on key market interest rates.

In doing so,

we are of course conscious of the fact that an expanding economy,
benefiting from the stimulus of tax reduction, should generate still
higher demands for credit from business and individuals, just as
these demands have risen over the past three years.

But, unlike

the situation a year ago we can now look forward to a sharp
reduction in the fiscal 1965 budget deficit, a fact that should
help relieve the concern that has been expressed in some quarters
that financing requirements will outpace our savings potential.
With a surplus in trust accounts and the normal purchases of the
Federal Reserve, foreigners and others that regularly absorb
Treasury securities, the residue to be financed in the market
should be quite manageable.

While we will face the usual large

seasonal needs for cash during the first half of the coming fiscal
year, a large portion will be offset by a substantial surplus durin!
the second half of the fiscal year.

Moreover, the volume of

- 9 -

savings seeking long-term investment outlets has remained very
large throughout the expansion period, and it should not be
forgotten that the higher incomes generated by reduced taxes and
rising levels of business activity will further enlarge this flow.
Interest Rates and the Problem of International Capital Flows
These market developments and appropriate debt management
and monetary policies cannot, of course, be fully appraised without
considering their relationship to our pressing balance of payments
problem.

In a world of convertible currencies and increasingly

free capital movements among countries, no industrialized nation
can expect to keep its own money markets entirely insulated from
developments in the principal markets abroad.
during 1963, when swelling outflows of

lo~g-

Certainly, development
and short-term capital

for a time threatened to undermine the dollar and bring unbearable
strains on the international financial system, have pointed
unambiguously to the need to achieve a reasonable balance between
the costs and returns on capital in our market and those abroad.
The recorded outflmv of United States capital in the second
quarter of 1963 reached an annual rate of nearly $7.0 billion.
As a result, the gradual, but steady, progress we had been making
in other directions to restore balance in our international payments
\vas overwhelmed.

Prompt and effective action to staunch this

capital outflmv could not be deferred.

Therefore, use was made

- 10 -

of the traditional tools of monetary policy

including a rise

in the Federal Reserve discount rate from 3 to 3-1/2 percent in
July -- to bring our structure of short-term money market rates
into better alignment with those prevailing abroad.
But the enormous volume of our savings seeking long-term
investment outlets clearly indicated that any attempt to bring
about the sharply higher levels of long-term interest rates required
to restrain the outflow of long-term capital to more sustainable
amounts would not have been practicable, and, in addition, would
have necessitated a degree of credit contraction entirely out of
keeping with out domestic economic situation.

It was in these

circumstances that President Kennedy on July 18 announced the
proposed Interest Equalization Tax.

By increasing the cost of

capital to foreigners borrowing in our market by the equivalent of
about one percent per year, the effects of this excise tax in
diverting foreign borrowers to other markets are closely analogous
an increase in the entire structure of domestic interest rates.
No one can be happy with the necessity of taking action of
this type to restrain the outward flow of capital.

But the need

was clear; flotations of new foreign securities in our market had
reached an annual rate of over $2 billion a year during the first
half of 1963, almost double the already high rate of 1962 and more
than triple the more normal volume of the years from 1959 to 1961.
Moreover, there were no indications that the flow would fall back

- 11 -

to earlier levels of its own accord.

Quite the contrary; it gave

indications of growing even larger.
The Interest Equalization Tax is a transitional measure.

The

fundamental solution to the problem of long-term capital outflows
must be found in other efforts at home and abroad.

One essential

is to strengthen our own economy, so that investment in the
United States is more attractive for our own citizens and
foreigners alike.

More specifically, one of the important benefits

of the tax reduc tion program will be to increase the profitability
of domestic investment and to generate more outlets at home for
our savings.
At the same time, the danger of massive demands from abroad
converging on our market can be gradually relieved by improvement
in the capital markets of other industrialized countries as they
become more fully capable of meeting the financial needs generated
by their own growth.

In this connection, the Treasury has

recently completed an intensive survey of European capital markets
and provided it to your Committee for publication.

I am hopeful

that this review of those markets will be useful in developing
greater understanding of both the problems and "the potential for
progress.
Balance of Payments Improvement
The effectiveness of the moderate upward pressures on the
short-term rate structure and the proposed Interest Equalization

T-

- 12 in curtailing the outward flow of capital was strikingly demonstrated
Juring the second half of the year, when reductions in the outflow
of private capital were largely responsible for the dramatic
improvement in our payments position.

The deficit on regular

transactions, after reaching the clearly unsustainable seasonally
adjusted annual rate of over $5.0 billion during the second quarter,
dropped to a rate of $1.6 billion during the third quarter.

While

final data for the full year are still lacking, this third quarter
rate appears to have been maintained or even slightly improved
upon during the fourth quarter.
during the entire

seco~d

The deficit on regular transactions

h3lf of 1963 was the smallest for any

equivalent period since 1957. For the year as a whole, despite the
sharp deterioration over the first six months, it appears to have
been reduced to about $3 billion, roughly $600 million below the
figure for 1962.
Special intra-Governmental transactions, which are excluded
from calculation of the regular deficit, have had the effect of
absorbing a portion of the dollars flowing into foreign hands.
These transactions were in somewhat smaller volume than in 1962, becc
of smaller debt prepayments and smaller advance payments on military
exports.

Nevertheless, our over-all deficit -- measuring the

increase in our liquid liabilities to foreigners and the decline
in our reserves

fully reflected the sharp improvement in the

second half of the year.

If the special, non-marketable, medium-ten

- 13 convertible Treasury securities sold to foreign official institutions
3re considered a balance of payments receipt rather than a liquid
liability, preliminary reports indicate that the over-all deficit
for 1963 should be about $1.9 billion, as compared to $2.2 billion
last year and $2.4 billion in 1961.

If the $700 million of these

issues sold during the year are disregarded, the over-all deficit
would be about $2.6 billion.

Thus, despite the sharp deterioration

in the early months of the year, we were able in 1963 to maintain
the pattern of improvement from the average deficits of $3.7
billion that characterized the 1958 to 1960 period.
These encouraging developments deserve mention.

But at the

same time, we must all recognize that the gains are still far too
limited, and that temporary improvement is not enough.

The need

for resolute action on the balance of payments problem is no less
a matter of national concern than it was six months ago.

Action

on the Interest Equalization tax must be completed without
changes that would impair the effectiveness of the bill reported
by the House Ways and Means Committee.

The comprehensive program

announced last July to reduce the balance of payments cost of our
military and foreign aid programs must be pressed forward with
undiminished vigor and resolution to realize the anticipated

$1 billion of savings on Government payments abroad by the end
of this year.

And imaginative and energetic efforts by business

- 14 and Government to capitalize on our fine record of price stability
and to expand export markets are particularly necessary if we 'are .
to move into early payments balance.
1963 also saw a marked decline in the drain on our gold stocks.
To some degree, this reflected the added supply of gold reaching
world markets from the Soviet Union, as well as the continued
usefulness of the informal cooperation among leading countries
in dealings on the London gold market.

But in addition,

foreigners -- and particularly private foreigners -- chose to
build their dollar balances at a more rapid rate.

For the twelve

months as a whole, our loss of gold came to $461 million, well
below the average of $873 million in 1961 and 1962 and the much
larger outflows, averaging nearly $1.7 billion, of the years 1958
to 1960.

This in itself is a sign of sustained confidence in the

stability of the dollar and in the strength of existing monetary
arrangements.

But this strength can be preserved only if there is

continuing evidence that our balance of payments is mdeed under
firm control.
The International Payments Mechanism
The prospect of the elimination of our deficit has, in turn,
helped to focus attention on the potential problems that may arise
over the years ahead in assuring an adequate supply of international

liquidity once the United States is no longer supplying dollars on
balance to the rest of the world.

In order that these problems

may be anticipated and the further evolution of the international
monetary system guided along constructive and agreed lines, the same
Group of Ten nations that in 1962 agreed to supplement the ordinary
resources of the IMF with the Special Borrowing Arrangements took
an important decision last October.

They agreed to examine

thoroughly the outlook for the functioning of the system and its
probable future needs for liquidity, and to appraise and evaluate
means for meeting these needs.
To this end, a working group of deputy finance ministers from
each country has been established under the chairmanship of
Under Secretary Roosa, and has been meeting periodically since
October.

These senior officials, each accompanied by

representatives of their central banks, have been assigned the task
of systematically examining the present system as it has heretofore
evolved, assessing the possible magnitude and nature of the needs
of the future, and developing possible approaches toward meeting
these needs.
At present, this working group is still in the process of
isolating the major issues in this vast and complicated area

- 16 through the process of frank and full discussion, with each
representative setting aside the details of his daily work so that I
can participate intensively in this review.

The group is also

drawing upon the resources of the International Monetary Fund,
the Bank for International Settlements, and the Organization for
Economic Cooperation and Development, each of which is represented
in the discussions by a senior official, providing further assuranCt
of a thoroughgoing, realistic appraisal.

It is expected that the

stage of more active negotiati.on, preliminary to the formulation of
any specific recommendations which the deputies may decide to
submit for review by the finance ministers themselves, will be
reached during the spring.
Meanwhile, a parallel study of these problems is also going
forward within the IMF, focussing particularly on those aspects
related to the functions of the Fund itself.
In closing, I should emphasize again that, valuable as these
studies of international liquidity will doubtless prove to be,
their relevance for the present United States balance of payments
situation is very limited.

There is no prospect of somehow

obtaining relief from the urgent necessity of eliminating our
balance of payments deficit.

The evaluation now underway is based

on the prospect that our balance of payments deficit will in fact
be ended.

The respons ibility inescapably res ts upon us to make the

assumption an accomplished fact.
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 and
the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition or the bills, does not have any exemption, as such, and loss
tram the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal. Revenue Code or 1954.

The bills are subject

to estate, inheritance, gif't 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 ta.xa.tion the amount of discount at which

r.reasury bills are originally sold by the United states is considered to be in-

terest.

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

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 originaJ. 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 obta.ined from any Federal Reserve Bank or Branch.

- 2 -

decimals, e. g., 99.925.

Fractions may not be used.

It is urged that tenders

be ~e 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 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 gu.s.ra.nty of payment by

an incorporated bank or trust company.

Dmnediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, foliowing 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 $ 2~OO or

7.4 )

less for the additional bills dated
ing until maturity date on

May

$ l~OO or less for the

November 7, 1963

JC6b1JJ

days remain~
and noncompetitive tenders for
, ( 91

182 -day bills without stated price from anyone

tHllX

bidder will be accepted in f'u.ll. 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 Reserv~
Banks on

Februa~ 1964

, in cash or other immediately available funds or

in a like face amount of Treasury bills maturing

February 6, 1964

5(iii9X

•

Cash

TREASURY DEPARTMENT
Washington

lBBB_

FOR IMMEDIATE RELEASE,

January 29, 1964

'mEASURY'S WEEKLY BILL OFFERING

The Treasury Department, by this public notice, invites tenders for two series
of Treasury bills to the aggregate amount of $ZlaOO,~ooo

Februa~ 1 1964

cash and in exchange for Treasury bills maturing
of

,or thereabouts, for
, in the amount

$ 2,201it4,OOO , as follows:

February~ 1964

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

in the amount of $11300m'000 ,or thereabouts, representing an additional amount of bills dated
and to mature

May 7, 1964

amount of $ 799'1&000

November 7. 1963

, originally issued in the

, the ,additional and original bills

to be freely interchangeable.
182 -day bills, for $ 900.~OO

Februa~, 1964

, or thereabouts, to be dated

,and to mature

AUgust

964

•

The bills of both series will be issued on a discount basis under competitive
and noncompetitive bidding a,s 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 standard time,

Monday, F e b . 3. 1964

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
January 29, 1964
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
$2,200,000,000,or thereabouts, for cash and in exchange for
Treasury bills maturing February 6, 1964, in the amount of
$2,201,114,000, 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 November 7,196J,
mature May 7, 1964,
originally issued in the
$799,976,000, the additional and original bills
interchangeable.

February 6, 1964,
representing an
and to
amount of
to be freely

182 -day bills, for $900,000,000,
or thereabouts, to be dated
February 6,1964, and to mature August 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
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the clOSing hour, one-thirty p.m., Eastern Standard
time, Monday, February 3, 1964.
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
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.
n-lllh

- 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 Depart~nt_ of the amount
and price range of accepted bids. Those submitting tenders will be
advised of the acceptance or rejection thereof. The Secretary of
the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect
shall be final. Subject to these reservations, noncompetitive
tenders for $200,000 or less for the additional bills dated
November 7,1963, (91~ays remaining until maturit¥ date on
May 7, 1964)
and noncompetitive tenders for ~100,000
or lesa 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 February 6, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing February 6,1964. 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 frow 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

TREASURY DEPARTMENT
FOR IMMEDIATE RELFASE

REPORr OF SUBSCRIPI'IONS AND ALL<JrMENl'S FOR CURRENT ADVANCE REFUNDING
The Treasury Department announced today the results of the current advance
refunding offer of:
4j~

Treasury Bonds of 1970 (additional issue) and
4-1/4% Treasury Bonds of 1975-85 (additional issue),
in exchange for:
3-3/4% Treasury Notes of Series E-1964 due August 15, 1964,
5% Treasury Notes of Series B-1964 due August 15, 1964,
3-3/4% Treasury Notes of Series F-1964 due November 15, 1964,
4-7/8% Treasury Notes of Series C-1964 due November 15, 1964,
2-5/8% Treasury Bonds of 1965 due February 15, 1965, and
4-5/fr{o Treasury Notes of Series A-1965 due May 15, 1965.
Subscriptions and allotments were divided among the several Federal Reserve
Districts and the Treasury as follows:
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
1)3.11as
San Francisco
Treasury

4% TREASURY BONIl3 OF 1970
Total SubSCriptions
Received and Allotted
$
72,723,500
1,219,096,000
37,004,500
124,298,000
44,698,000
47,444,500
225,572,000
67,746,000
62,926,500
62,131,000
87,584,500
113,540,500
_ _58,508,000

4-1/4% TREASURY BONDS OF 1975-85
Total SubscripTotal
tions Received Allotments
$ 15,562,000
$ 13,220,000
651,381,500
544,860,500
50,785,500
42,573,500
4,187,000
3,642,000
3,417,000
2,919,000
2,543,000
2,294,000
66,602,500
55,935,500
4,964,000
4,260,000
1,714,000
1,539,000
7,585,000
6,571,000
11,495,000
9,757,000
30,950,500
26,233,000
40,940,000
34,217,000

Totals

$2,223,273,000
$892,127,000
$748,021,500
Following is a breakdown of securities to be exchanged for the securities to be
issued (amounts in millions):
ELIGIBLE FOR EXCHANGE
Securities
Amounts

3-3/410

Notes, E-1964
5% Notes, B-1964
3-3/4% Notes, F-1964
4-7/8% Notes, C-1964
2-5/8% Bonds of 1965
4-5/8% Notes, A-1965
Totals

$ 5,019
2,316
6,398
4,195
4,682
2,113
$24,723

SECURITIES TO BE ISSUED
4% Bonds
4-1/ 4% Bonds
1970
Total
1975-85
696
164
276
211
655
221
$2,223

$238
106
159

116
53
76
$748

934
270
435
327
708
297
$2,971

Total
unexchan&
$ 4,085
2,046
5,965
3,868
3,974
1,8~

$21, 75~

- 3 Regulations with respect to the property of Communist China and
North Korea.
Detailed information on who must report may be found in the
amendment issued todayo

The amendment and the forms on which

reports must be made may be obtained from the Foreign Assets
Control, Treasury Department, Washington, D. C., 20220, or the
Federal Reserve Bank of New York, 33 Liberty Street, New York,
New York, 10045.

- 2 -

location of such property.

The information obtained will also

be useful to the Congress in studying possible future legislation,
and in connection with the Government's consideration of
United States claims against Cuba.
Reports are required to be filed with respect to all property
in the U. S. valued at $1,000 or more in which there is a direct
or indirect interest of any individual who was in Cuba on or since
July 8, 1963; or in which there is a direct or indirect interest
of corporations or other organizations organized under the laws
of Cuba, or having their principal place of business in Cuba,
or controlled or substantially owned by Cuba or nationals thereof.

~ports must be filed by all individuals, partnerships,
corporations, and unincorporated organizations in the United States
holding such propertU
A similar census was taken under the Foreign Assets Control

LETTERHEAD

[1CREASURY DEPARTMENT
Washingtoitl
<~

January 30, 1964
FOR RELEASE A.M. NEWSPAPERS

Friday, January 31, 1964:
Census To Be Taken of Blocked Cuban Property

1"").

,.(':,~: ~~,

The Treasury Department today announced that it is taking a
census of property blocked under the Cuban Assets Control
Regulations.
The Cuban Assets Control Regulations, issued July 8, 1963,
block all Cuban assets in the United States.

Under an amendment

to the Regulations issued today all blocked property must be
reported to the Treasury Department by March 15, 1964.

In general,

blocked property must be reported by individuals, partnerships,
corporations, and unincorporated associations in the United States
holding such property.
The census will enable the Treasury Department to ascertain
the total amount of blocked property, as well as the nature and

D..

TREASURY DEPARTMENT

January 30, 1964
FOR RELEASE A.M. NEWSPAPERS
FRIDAY, JANUARY 31, 1964
CENSUS TO BE TAKEN OF BLOCKED CUBAN PROPERTY
The Treasury Department today announced that it is taking a
census of property blocked under the Cuban Assets Control Regulations
The Cuban Assets Control Regulations, issued July 8, 1963, block
all Cuban assets in the United States. Under an amendment to the
Regulations issued today all blocked property must be reported to the
Treasury Department by March 15, 1964. In general, blocked property
must be reported by individuals, partnerships, corporations, and
unincorporated associations in the United States holding such
property.
The census will enable the Treasury Department to ascertain the
total amount of blocked property, as well as the nature and location
of such property. The information obtained will also be useful to
the Congress in studying possible future legislation, and in
connection with the Government's consideration of United States clairr
against Cuba.
Reports are required to be filed with respect to all property
in the U. S. valued at $1,000 or more in which there is a direct or
indirect interest of any individual who was in Cuba on or since
July 8, 1963; or in which there is a direct or indirect interest
of corporations or other organizations organized under the laws of
Cuba, or having their principal place of business in Cuba, or
controlled or substantially owned by Cuba or nationals thereof.
A similar census was taken under the Foreign Assets Control
Regulations with respect to the property of Communist China and
North Korea.
Detailed information on who must report may be found in the
amendment issued today. The amendment and the forms on which reportl
must be made may be obtained from the Foreign Assets Control,
Treasury Department, Washington, D. C., 20220, or the Federal
Reserve Bank of New York, 33 Liberty Street, New York, New York,
10045.
D-1119

A 3-7/f1/, ~ DOte to be dated February lS, 19t34, and. to mature
Atl&". 13, 1965, at
j or
AD adAUt10Ml aaouat of ~ ~ Iotea of' Seras 4\-lOO5, dated
J'e'bnar,y 1.5, lJ6Z I aud llaturing Ausu-t 15, 1966, at
of vb1eh $4.,010 aiUion are DOW 0\It~.
CUb lNbIcr1;ptioaa tor 'the notes will DOt be received.
.U"b1e tor . .tense are .. to1.lowa:

The maturing iuuea

3-1/.l!c !l'reuury CenU"1catea ot Indebtedness of
Sarin A-J.96.i, ciIdei February 1.5, 1963, and
.::-:c'
$1,634 -.11) 1011 ot • ~ Baad. ot l.964, dQec1 Feb:ruary 1<1" lJ••

$6.761 aUUoo or

Of ~ $8,375 iI1l.l1ca
.... II fS.hlg a&IOIJnt be1D&
~

_turing 181N88, $4,338 million 1& held by the pu.bl1e,
bel4 by 'the Federal Reaerve Danks and Govet'llllent rnftst-

. . aub8cr~ boob will be open ~l)Y..2U_J'-!b~g_"_S__~~",~:t?~fQr
tile NIM1P ot aubecr1pt1oaa. S\abecr1pt1on8 ad4re8Md to a Fe<leral. ~e ..u·ve Bank
tr . . . . . , or ~ the omoe ot the 1'..reGaurer ot the tJrdted states, and placed in
tIII..u 'betore II1dzdgtrt, Pebnary 5, vUl be COD81d.ered as ttmely. ~ ~
III teU'VW,y date tor the DOtes v1ll be f.bnday I 1I'ebl'\l8ry 17. 'lbe note. w1l.l be made
18 reg1atere4 u well . . bearer tona. All aubaer1berG requesting regis"
. . . . . . . . . V1l.l be requ1rad W t\\m1ah appropriate ident1f~yilli llUUlbera as required
.. tax retun1a &Del other docuMIrta lIubBdtted to the Internal Hevenue Service.

-"&le

Jate~

on the 5-7 /a~ notes vUl be payable on Ii aem1ennual basia on August L5,
aad. on February 15 and Aug,'WIt 1.3, 1965. Interest OIl the 4]1', notes 1s pa:'J801e
.. Mnary lS and AuguR 15.

lIN,

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE

January 30, 1964

TREASURY ANNOUNCES $S.4 BILLION REFUNDING

teru ot its refun4 i "I otter to bol.4era ot
$8.4 billicm ot securities _turing February l.5. Apart from it. ~ ad ~
otter1ngs ot Treasury bills, the Treasury does not plan to borrow ap1" until about
the beginning ot April., when there is a possibil.1ty tbat $1-l./2 b1llion, or tberea~, will. be required. Hol.ders ot the certificates aDd bonds -.tur1n& hbl'Ull7
1.5 are being offered the opportunity to excbaDae them tor e1ther ot the tol.l.cnr1lla
aeaurities:
'!'be Treasury

~ 8DDCNDeed the

A :3-7/S"" Treasury note to be dated February 1.5, 1964, and to mature
August 13, 1965, at 99.875; or
An additional amount of 4"" Treasury Notes of Series A-1966, dated
February 15, 1962, and maturing August 15, 1966, at par,
of which $4,010 million are now outstanding.
Cash subscriptions for the notes will not be received.
eligible for exchange are as follows:

The maturing issues

$6,741 million of 3-l/4~ Treasury Certificates of Indebtedness of
Series A-1964, dated February 15, 1963, and
$1,634 million of 3~ Treasury Bonds of 1964, dated February 14, 1958.
Of the $S,375 million of maturing issues, $4,338 million is held by the public
the remaining amount being held by the Federal Reserve Banks and Government Investment Accounts.

The subscription books will be open only on February 3 through February 5 for
the receipt of subscriptions. Subscriptions addressed to a Federal Reserve Bank
or Branch, or to the Office of the Treasurer of the United States, and placed in
the mail before midnight, February 5, will be considered as timely. ihe payment
and delivery date for the notes will be r.t>nday, February 17. The notes will be mad
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 3-7/8r{, notes will be payable on a semiannual basis on August 1
1964, and on February 15 and August 13, 1965. Interest on the 4"" notes is payable
on February 15 and August 15.
D-ll20

- 4 The use of blanket certificates of American ownership avoids
the necessity for delivering an individual certificate of
American ownership in connection with each sale.

The blanket

certificates cover all sales made through a single account,
and may be executed by those who have been United States persons
continuously since July 18, 1963.

Blanket certificates remain

in effect until revoked or until the member or member organization
is notified that the seller's status has changed.

The bill as

,
approved by the House Ways and Means Committee

pro~des

for

penalties for improper sales under the blanket certificates,
as well as for executing false certificates.
The National Association of Securities Dealers is a
national securities association registered with the
Securities and Exchange Commissionmd has regulatory authority
over its more than 4,000 members who constitute the great

- 3 -

must have in his possession an individual certificate
1\

of American

owership relating to the sale,or a blanket certificate of

~erican

ownership relating to the account for which the sale

was effected.

If a member is selling as broker securities which

,)
would subject the purchaser to payment of Interest Equalization
T~,

disclosure of this fact must be made to the purchaser at the

time of execution and the confirmations to the purchaser and

seller mus t s ta te:

Tax ,II

"Buyer subj ec t to Interes t Equalization

The bill, as approved by the House Ways and Means

Committee, provides for a penalty for members who effect sales

in willful violation of these provisions.

A U. S. purchaser who relies on a confirmation received

from an National Association of Securities Dealers member that

he purchased from another American is not required to file an
Interest Equalization Tax return under the bill in connec tion

with his purchase

:; L'

- 2 -

Under the new procedures authorized in the Ways and Means

Committee bill, a purchaser of a foreign security in the

over-the-counter market may regard a confirmation furnished by a..

~~~
~tional Association

of Securities Dealer;rffi@Nb9£ as conclusive

"
proof of prior American ownership if the confirmation does not

state that the buyer is rrsubject to Interest Equalization Tax."

The National Association of Securities

Deale~

today

sending to its members and member organizations notification of

the new rules applying to the trading of foreign securities in

the over-the-counter market.

Under these new rules, all sales

by a member of the association) as a broker" of securities subject

~
to Interest Equalization Tax must be for accounts which would
~

Mt subject the purchaser to payment

~ ifiE~ ~

~.
the member rat the time

Who sells as broker a foreign security owned by an American
.)

J U

Q.~

"3'/ 11 (.

-DR. AFT

NEW PROCEDURES TO SIMPLIFY PURCHASES OF
FOREIGN SECURITIES SUBJECT TO PROPOSED TAX

~'-'l

to the proposed Interest Equalization tax now pending before

cur

~~~~
Congress ..... "

purchases _

made on the over-the-counter

market through the facilities of the National Association of

Securities Dealers.

Under the bill, which has been approved by

the House Ways and Means Committee, purchase of a foreign

security by an American from another American is excluded from

the tax.

The new procedures contemplate the use of blanket

certificates of American ownership by the seller, and are similar

to those applied to purchases of fore!ign securities on national

securities exchanges since August 19, 1963.

-,",,---

TREASURY DEPARTMENT

January 31, 1964
FOR RELEASE A.M. NEWSPAPERS
MONDAY, FEBRUARY 3, 1964

NEW PROCEDURES TO SIMPLIFY PURCHASES OF
FOREIGN SECURITIES SUBJECT TO PROPOSED TAX

The Treasury Department announced today that a simplified
procedure would be used to identify purchases of foreign securitie:
in the over-the-counter market. The procedure will cover foreign
securities that are subject to the proposed Interest Equalization
tax which is now pending before Congress.
It relates to purchases
made on the over-the-counter market through the facilities of the
National Association of Securities Dealers. Under the bill, which
has been approved by the House Ways and Means Committee, purchase
of a foreign security by an American from another American is
excluded from the tax.
The new procedures contemplate the use of blanket certificate!
of American ownership by the seller, and are similar to those
applied to purchases of foreign securities on national securities
exchanges since August 19, 1963.
Under the new procedures authorized in the Ways and Means
Committee bill, a purchaser of a foreign security in the
over-the-counter market may regard a confirmation furnished by a
member of the National Association of Securities Dealers as
conclusive proof of prior American ownership if the confirmation
does not state that the buyer is "subject to Interest Equalization
Tax."
The National Association of Securities Dealers is today sendiI
to its members and member organizations notification of the new
rules applying to the trading of foreign securities in the
over-the-counter market. Under these new rules, all sales by a
member of the association, as a broker, of securities subject to
the Interest Equalization Tax must be for accounts which would not
subject the purchaser to payment of the tax, unless the member
specifically states at the time of execution that a liability for
tax would be involved. A member who sells, as broker, a foreign
security owned by an American must have in his possession either
an individual certificate of American ownership relating to the
sale, or a blanket certificate of American ownership relating to
D-1121

- 2 -

14'

the account for which the sale was effected. If a member is selling
as broker, securities which would subject the purchaser to payment of
Interest Equalization Tax, disclosure of this fact must be made
to the purchaser at the time of execution and the confirmations to
the purchaser and seller must state: "Buyer subject to Interest
Equalization Tax." The bill, as approved by the House Ways and
Means Committee, provides for a penalty for members who effect sales
in willful violation of these provisions.
A U. S. purchaser who relies on a confirmation received from
a National Association of Securities Dealers member that he
purchased from another American is not required to file an Interest
Equalization Tax return under the bill in connection with his
purchase.
The use of blanket certificates of American ownership avoids the
necessity for delivering an individual certificate of American
ownership in connection with each sale. The blanket certificates
cover all sales made through a single account, and may be executed
by those who have been United States persons continuously since
July 18, 1963. Blanket certificates remain in effect until revoked
or until the member or member organization is notified that the
seller's status has changed. The bill as approved by the House Ways
and Means Committee provides for penalties for improper sales under
the blanket certificates, as well as for executing false certificates.
The National Association of Securities Dealers is a national
securities association registered with the Securities and Exchange
Commission and has regulatory authority over its more than 4,000
members who constitute the great majority of over-the-counter dealers.
Copies of the notification being sent to its members may also be
obtained in Room 4004, main Treasury building, Washington, D. C.

000