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LrR~ARY
rflnIYJ 50~O
JUN
1~
1972
TREASURY DEPARTMENT
Uni ted States Savings Bonds Issued and Redeemed 'l:1U bUkE ~313C@lii6y! 19.64
(Dollar amounts in millions - rounded and will not necessarily add to totals)
AIDo'Wit
AlnoUilr--" -Amount--r%Outstan~
Issued 1/ Redeemed !II Outstanding 2/lof Amt.Issued
MATURED
113
.22
.38
272
1,175
1,869
2,330
2,051
1,137
1,248
1,389
1,452
1,343
1,171
1,277
1,592
1,800
1,964
1,865
1,821
1,905
1,830
1,953
2,149
2,191
2,805
1,879
14.80
14.48
14.30
15.30
17.20
21.19
24.66
26.62
28.27
29.97
30.18
31.42
34.41
38.22
40.39
40.05
lW..61
l.!4.98
46.19
49.51
54.28
57.52
66.47
83.62
40,425
30.28
1,734
711
2,505
5,089
59.11
87.74
10,038
2,445
7,594
75.65
Total Series E and H ••••••••••
143,554
95,536
48,019
33.45
Series J and K (1952 - 195~) .~ ••
3,718
2,235
1,483
39.89
34,524
TotaJ. matured •••••••
147,27 2
Total unmatured •••••
181,796
Grand Total •••••••••
1/ Includes accrued discount.
~ Current redemption value.
1I At option of owner bonds may be held and
will earn interest for additional periods
after original ma turi ty dates.
4/ Includes matured bonds which have not been
- nresented for redemotion.
34,400
97,771
132,171
124
49,502
49,626
.36
33.61
27.30
$ 5,003
29,521
$ 4,992
29,408
Unclassified ••••••••••••••••••
1,838
8,117
13,069
15,226
11,923
5,365
5,060
5,217
5,136
4,481
3,880
4,064
4,626
4,709
4,863
4,657
4,376
4,235
3,962
3,945
3,959
3,809
4,220
2,247
532
1,566
6,942
11,200
12,896
9,872
4,228
3,812
3,828
3,684
3,138
2,710
2,788
3,034
2,910
2,898
2,792
2,555
2,330
2,132
1,993
1,809
1,618
1,415
368
573
Total Series E ••••••••••••••••
133,516
93,091
Series H (1952 - Jan. 1957) 3/ ••
H (Feb. 1957 - 1964) : ••••
4,238
5,800
Total Series H ••••••••••••••••
Series A-1935 - D-1941 ••••••••••
Series F & G-1941 - 1952 ••••••••
$
11
UNMATURED
Series E: 3/
1941 •••••••••••••••••••••
1942 •••••••••••••••••••••
1943 •••••••••••••••••••••
1944 •••••••••••••••••••••
1945 •••••••••••••••••••••
19L6 •••••••••••••••••••••
1947 •••••••••••••••••••••
1948 •••••••••••••••••••••
1949
1950 •••••••••••••••••••••
1951 •••••••••••••••••••••
1952 •••••••••••••••••••••
1953 •••••••••••••••••••••
0 ••••••••••••••••••••
1954 •••••••••••••••••••••
1955 •••••••••••••••••••••
1956
1957
1958
1959
1960
1961
1962
196)
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
1964 •••••••••••••••••••••
All Series
-41
~
W
BUREAU OF THE PUBLIC DEBT
I
Uni ted States Savings Bono!:} Issued and Redeemed Through September 1964
(Dollar amounts in millions - rounded and will not necessarily add to totals)
~ount
i
Issued
MATURED
Series A-1935 - D-1941 ••••••••••
Series 1" & G-1941 - 1952 ••••••••
II Re!:~:~-y'-Ou~!'~:ncJng ~/r!fO:~~~~~~
$
.22
.38
$ 5,003
29,521
$ 4,992
29,408
1942
19L3
1944 •••••••••••••••••••••
19L5 •••••••••••••••••••••
1946 •••••••••••••••••••••
1947 •••••••••••••••••••••
19L8 •••••••••••••••••••••
1949
1950
1951 •••••••••••••••••••••
1952 •••••••••••••••••••••
1953 •••••••••••••••••••••
1)l54 •••••••••••••••••••••
1955 •••••••••••••••••••••
1956 •••••••••••••••••••••
1957 •••••••••••••••••••••
1958 •••••••••••••••••••••
1959 •••••••••••••••••••••
1960 •••••••••••••••••••••
1961 •••••••••••••••••••••
15'62 •••••••••••••••••••••
1963 •••••••••••••••••••••
1964 ••.....•. ..........•
Unclassified ••••••••••••••••••
1,838
8,117
13,069
15,226
11,923
5,365
5,060
5,217
5,136
4,481
3,880
4,064
4,626
4,709
4,863
4,657
4,376
4,235
3,962
3,945
3,959
3,809
4,220
2,247
532
1,566
6,942
11,200
12,896
9,872
4,228
3,812
3,828
3,684
3,138
2,710
2,788
3,034
2,910
2,898
2,792
2,555
2,330
2,132
1,993
1,809
1,618
1,415
368
573
272
1,175
1,869
2,330
2,051
1,137
1,248
1,389
1,h.52
1,343
1,171
1,277
1,592
1,800
1,964
1,865
1,821
1,905
1,830
1,953
2,149
2,191
2,805
1,879
-41
14.80
14.48
14.30
15.30
17.20
21.19
24.66
26.62
28.27
29.97
30.18
31.42
34.41
38.22
40.39
40.05
41.61
44.98
46.19
49.51
54.28
57.52
66.47
83.62
Total SerieB E ••••••••••••••••
133,516
93,091
40,425
30.28
Series H (1952 - Jan. 1957) 3/ ••
H (Feb. 1957 - 1964) : ••••
4,238
5,800
1,734
711
2,505
5,089
59.11
87.74
10,038
2,4h5
7,594
H ••••••••••
143,554
95,536
48,019
33.45
Series J and K (l)l52 - 195~) .~ ••
3,718
2,235
1,483
39.89
34,524
Total matured •••••••
147,272
All Series Total unmatured •••••
181,796
Grand Total •••••••••
1/ Includes accrued discount.
~ Current redemption value.
11 At option of owner bonds may be held and
will earn interest for additional periods
after original maturity dates.
~ Includes matured bonds which have not been
- presented for redemption.
34,400
97,771
132,171
124
49,502
49,626
.36
33.61
27.30
UNMATURED
Series E: 3/
1941
•••••••••••••••••••••
•••••••••••••••••••••
•••••••••••••••••••••
0 ••••••••••••••••••••
•••• 0
••••••••••••••••
~
Total Series
H ••••••••••••••••
Total Series E and
11
113
1±1
-
•
I
BUREAU OF THE PUBLIC DEBT
75.65
--
TREASURY DEPARTMENT
October 1, 1964
WITHHOlDING OF AFfRAISEMENT ON
DINITROSOPENTAMETBY:U!:NETETRAMI
(DNPl'r
The Treasury Department is instructing customs field officers
to withhold appraisement of
dinitrosopentamet~lenetetramine
im-
ported from Japan pending a determination as to whether this merchandise is being sold in the United States at less than fair value.
Notice to this effect is being published in the Federal Register.
(DNPl')
Dinitrosopentamethylenetetramine/is a chemical blowing agent
used in making expanded, or cellular, rubber and plastic, commonly
known as foam rubber and foam plastic.
Under the Antidumping Act, determination of sales in the United
States at less than f'air value would require reference of the case
to the Tariff Commission, which would consider whether American industr,y was being injured.
Both dumping price and injury must be
shown to justify a finding of dumping under the law.
The allegation in this case was received on February 11,
1964.
The dollar value of' imports received during the period September 1,
1963, through August 1964
was approximately $80,000.
')
TREASURY DEPARTMENT
,~
Oc tober 1, 1964
FOR DMmIATE RELU.SE
WITHHOLDING OF APfRAISEMEIT ON
DINITROSOJlUTAMBTllY.U!:RBTE'l'R
(DNPl')'
The Treasury Department is instructing customs field officers
to withhold appraisement of
dinitrosopentamet~lenetetram1ne
im-
ported from Japan pend 1 Dg a determination as to whether this aercbandise is being sold in the United states at less than fair value.
Notice to this effect is being published in the Federal Register.
(DNPl')
D1n1trosopentametb;ylenetetramine/is a chemical blowing agent
used in making expanded, or cellular, rubber and plastic, cOlIDIIODly
known as foam rubber and foam plastic.
UDder the Antidumping Act, determination of sales in the United
states at les8 than f'air value would require reference of the case
to the Tariff' CoDm1ssion, which would consider whether American industry was being injured.
Both dumping price aDd inJury lIUSt be
shown to justify a finding of dumpiDg under the law.
The allegation in this case was received on February 17,
1964.
The dollar value of 1mports received during the period September 1,
1963, through August 1964 was approximately $80,000.
P'\)R
i;W:A~!
ru.!dg,
A. M. fiu·iS> ~P'~:;.s,
)Otoo.r 6, 1964.
0IIt001Mr
S, lMil
The TrM81d'7 tepan.ent announoed lut eftll1nc t.r..a\ t.he MDden tor we ..rlH .,
TI'HftI'J billa, ana aerie. to be an add1t.1:mal 1. . . of \he biUa daw. Jv.l.3
and the o~r eeries to) be d .. t.~d ::-.\Ober I, 196b, wtllah we" ortend OD s.p-.Mr )0,
.... O;4Md at. the'ed@ral ;eaol"Ye panke on ,)ctobN' s. r........ wen 1aw1M4 1$l,2Oil,O'JO,'JOO, ... tberubouu, of )'l-dq bllla .nd tor $y<:;)'),O}JJ,O')O, or t.henaboute,
of l82-da1 bl1la. '7he detail. of til" two •• riea a~ &l' toll ....
9, 1",
Rlln,- Of A.C;,::"~?T D
GQ4?£r~ TIn. !HP":
~fl-day
l'nta$llrl b~L..
trFat.ur1ns J!1'!U!!7 7. 196$
Prlce
".09l !T'
9,.0g8
182-c1q ,fftanr, bill,
. .t.v.r1", yr1l: 8, 1~
•
App....
t'riae
Annul ita...
•
Approx. lfqu1y.
Mnul date
).S~-
'.5. , I
:s.S8JJ
I
:::iid.,.
•
•
•
98.110
I
98.105
iJ
).1_·
) .... , J
). TWd It
'SOO,OOO
99.09h
:I
".101
a/ IsoepUna one t.dar of $800,000, -.J hcepUq \we , ....... utalS . .
[S' 01 t.he UOlmt. of 91-dq 1nlla litldt.. at, \be 1_ pr:I.M . . . ...,-. .
6" . f U. aacNft\ of 162-day billa bid tor at the 1_ pr10e . . . . . . .pW
TOtAL
1ll:ti~\r:;ft.~
APLI.
DleV1o\
IMGi
New tGJ'k
Philadelphia
Cl.Y.lanG
~1"1IOIld
"'-ii'
~CC;;?rd'\;'l )t"
Ap,211ed 1"01"
t: 1Ji, 9S1i, 000
1,)67,'"'06,000
29,829,000
22,4)1&,000
1),884,000
AUa.n\a
)O,~1,OOO
Qlic-ao
179,W,OOO
S\. JAuu
~1ar..apol.1.
lau. . City
;")an
40, m, 000
2l,W,OOO
)),017,000
2$,7Wl,OOO
f·all ••
Fl'anclaeo
fOfALS
~
[,~i'\
8~.221000
$1, 9l2, 611, 000
ritA.L ,'.., ',' R'ffl
ACce~ie4.
i,fIi,ooo
764,406,000
lS,1I9,OOO
•
•
I
t
1),_,000 •a
21,4.11&,000
II,on, 000
t
1 d,)a)S , 000
I
,.,6)1,000
t
18,)11,000
I
)3,027,000
I
18,1"',000
Zl."'a
OOO
,
I
D~5riUGTS.
'
.
1"
11,101,000
AliiUM
•1,21h,lSl,
.....j!tM
• &,.,..,000-
000
65),101,-
)I, 73k,GOO
IS, 0,JIa, 000
11,810,000
l',SIt6,OOO
Pk,ITS,oao
1,QlaI,OOO
6.<*.,000
12), IJS, 000
11,191.,000
7,46,,000
lIa,Jal',OOO
U,018,OOO
98.~89.000
'1,100,091,000 !I $1,6)1&,.1&10,000
I,GaI,_
$,1.,000
a.,"~'OOO
S89, 001
11,""',000
s,m,OOI
itta1S'.0G0
tfOQ,fC)S,OOO ,
,..1"
IaoludN $240,16),)()O nOllOCIIlpet.1'l..............pWd at. \be ....... prt.ee ., " • •
IulwSea $77,91'5,000 nODOQllpeUU". . . . .n ....pHd at. \he ......... priee of
en a coupon i . . . of the . . . ~h U4 t.,. the .... ___ 1In'..wca, \be r . . . . .
\be. . billa would iJrmde 1 ielQ of l.61i, tor the 9l-da)" billa, ...
ter ...
182-4q billa. Interest rate. _ biUa are cpn..d in \4tru .t __ cI1..oUDt. w1t1l
the I'tt.urD related. t.o t.he teee ~t. 0:' the b1.11a ~aole
t.~'7 ...~ \lila
the .....t. l,..,.at.ed aDd their ~ 11l anual _~ 01 daT. rel.Aed t.o a ~
year. ift oon~t., Tie1da OIl 091'\1(18&te8, !lotee, aacl bend. are .-put.« la t.eRI
~tDter...t, _
the aount. in¥•• t«d, .... relav ttle ftU8tMr >jf ...,.. ~lftinc 1a . .
lnt.,-'re-' p&1Md ;)eriod to t.he ~t.ual ~ or dal. 1n the ?en.. w1\h ..,........
.-pouadinC i t .ore \ban Gtle ooup.... 'r1od ia 1rrroly.d.
).8,.,
a' ..
TREASURY DEPARTMENT
FOR RELEASE A. M. NEWSPAPERS,
Tuesd!y, October 6, 1964.
October
5,
RESULTS OF TREASURY'S WEEKLY BIIJ.. 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 July 9, 1964,
and the other series to be dated October 8, 1964, which were offered on September 30,
were opened at the Federal Reserve Banks on October
Tenders were invited for
s.
$1,200,000,000, or thereabouts, of 91-day bills and for $900,000,000, or thereabouts,
ot 182-day bills. The details of the two series are as follows:
RANGE OF ACCEPTED
91-day Treasury bills
:
l82-day Treasury bills
maturing January 7, 1965
maturing April 8, 1965
Approx. Equiv. :
Approx. Equiv.
Price
Annual Rate
:
Price
Annual Rate
High
99,098 a/
3.568%
:
98.110
3.738%
Low
99.091 3.596%
:
98.105
3.748%,1
Average
99.094
3.582% !I
:
98.107
3.744% ~
a/ Excepting one tender of $800,000; b/ Excepting two tenders totaling $500,000
4'5% of the amount of 91-day bills bid-for at the low price was accepted
63% of the amount of 182-day bills bid for at the low price was ~ccepted
TOTAL TENDERS APPLIED FOR AND ACCEP'fED BY FEDERAL HESERVE DIS'fRICTS:
COOlETITIVE BIDS:
Ef
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
~I
-
Applied For
$ Qi,954,000
1,387,406,000
29,829,000
22,434,000
13,884,000
30,647,000
179,445,000
40,291,000
21,412,000
33,027,000
25,744,000
83,539,000
$1,912,612,000
Accepted _
$ 44,954,000
764,406,000
15,729,000
22,434,000
13,884,000
28,097,000
128,435,000
.34,631,000
18,312,000
33,027,000
18,194,000
77,989,000
$1,200,092,000
: Applied For
: $ 19,452,000
1,274,151,000
:
7,042,000
:
38,734,000
:
6,084,000
:
21,820,000
123,235,000
:
12,294,000
7,463,000
14,478,000
:
11,078,000
:
98,589,000
sf $1,634,420;000
Accepted
$ 4,742,000
653,109,000
2,042,000
25,034,000
5,184,000
19,546,000
94,275,000
9,909,000
4,589,000
12,).1.38,000
5,878,000
64,159,000
$900,905,000
#
Includes $240,183,000 noncompet1t1ve tenders accepted at the average price of 99.094
Includes $77,915,000 noncompetitive tenders accepted at the average price of 98.107
On a coupon issue of the same length and for the same amount invested, the return on
these bills lIould provide yields of 3.67%, for the 91-day bills, and 3.87%, for the
182-~ 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 36o-day
year. In contrast, yields on certificates, notes, and bonds are ccmputed 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 semi-annual
compounding if more than one coupon period is involved.
D-13S8
- 3 'R+x,~
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, gi:rt 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
loca.l taxing authority.
For purposes of ta.xa.tion 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 origina.l 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.
- 2 -
decimals, e. g., 99.925.
Fr&ct:f.ons
~
not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which viII
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 vill be received without deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express gua.ranty of payment by an incorporated bank" or trust company.
Dmnediately a.:rter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, folloving which public announcement vill be made by
the Tre&BUry Department of the amount and price range of accepted bids.
Those
submitting tenders vill 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 reserv.ations, noncompetitive tenders for $200,000 or
(1:6)
less for the additional bills dated
ing until maturity date on
July l6
January. 1965
$10fte9f0 or less for the
1964
,(
(17-J
91
days remain-
(la)
) and noncompetitive tenders for
182 -day bills without stated price from anyone
(21)
bidder vill be accepted in f'u.ll at the average price (in three dec1ma.1s) of accepted competitive bids for the respective issues.
Settlement for accepted ten-
ders in accordance vith the bids must be made or completed at the Federal Reserve
Banks on
octObe~
1964
,in cash or other immediately available 1"unds or
in a like :race amount of Treasury bills maturing
Octobe~
1964
•
Cash
Rl!ifthirb:
'Eb Di'CPffifPr.x
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
October 5, 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 $
2z200~0,000
cash and in exchange for Treasury bills mat\lring
October 15. 1964 , in the amount
w:
of $ 2.201~.000 , as follows:
91 -day bills (to maturity date) to be issued
fSt
, or thereabouts, for
October+s¥ 1964
,
in the amount of $ 1,200,000,000 , or thereabouts, represent-
fif
ing an additional amount of bills dated
and to mature
amount of $
January 14, 1965
*'*
90~~000
J~
1W964
,
,originally issued in the .
, the additional and original bills
to be freely interchangeable.
$ 1,000~000,000 , or thereabouts, to be dated
,t
October ~ 1964
, and to mature _.....;;Ap..;a;,;;;r1.;;..1'"7":'15-:'c-I_l_9_65
___ •
182 -day bills, for
=tHt-
1a )
~
(l~j
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
Daylight SaViDg
closing hour, on~-thirty p.m., F,astern/UJQI'fVIf time, Friday. October 9, 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
pric~
offered must be expressed on the basis of 100, with not more than three
·
TREASURY DEPARTMENT
a
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,OOO,000,or thereabouts, for cash and in exchange for
Treasury bills maturing October 15,1964,
in the amount of
$2,201,685,000, as follows:
9~day bills (to maturity date) to be issued October 15, 1964,
in the amount of $1,200,000,000, or thereabputs, representing an
additional amount of bills dated July 16,1~64,
and to
mature January 14,1965, originally issued in the amount of
$902,495,000, the additional and original bills to be freely
interchangeable.
182 -day bills, for $ 1 ,000,000,000, or thereabouts, to be dated
October 15,1964, and to mature April 15, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, one-thirty p.m., Eastern Daylight Saving
time, Friday, October 9, 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-1359
- 2 -
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ 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 $200,0000r less for the additional bills dated
July 16, 1964
(9~days remaining until maturit¥ date on
January 14, 1965) 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 ir. accordance with the bids must be
made or completed at the Federal Reserve Banks on October 15, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing October 15, 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 th'~ 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
- 2 -
liThe drc:ft convention will undergo minor technical revision
as a result of discussions held in the past week and will then be
submitted to the respective goverrunents for signature.
signature, it will be submitted to the U. S.
S~nate
After
and the Israeli
Cabinet for approval.
liThe United States delegation was headed by Stanley S. Surrey,
Assistant Secretary of the Treasury, and the Israeli delegation by
Ariel Ariely, Dire ctor of State R8venue."
The following coble was received by state Department and dictated
over tle phone by Mr. Vernon Setser to Miss McAnallen (Mr. Tillinghast's
office), October 6, 1964, 5:30 P.M.:
AmEmbassy Tel Aviv, from Surrey for SJtser, passed Treasury for
Hanning and Stone
The following is an agreed joint press release on U.S.-Israel
tax convention. Request Treasury to issue release 10:00 A.M.,
Wednesday, October 7, Washington time, to parallel release in Israel
(4: 00 P .N., Israeli time):
"Agreement on the substantive provisions of a draft income tax
convention between the United States and Israel to promote international trade and investment and to eliminate double taxation was
announced today by delegations from the two countries.
"In addition to provisions commonly found in tax treaties, e.g.,
dealing with permanently established and visiting businessmen,
technicians, students and professors, the draft convention provides
that the United States will grant to its taxpayers who make investments
in qualified enterprises in Israel a credit against tax equal to
7 percent of their capital investments in such enterprises.
Provision
is also made for the transfer of technical know-how and related
services in exchange for shares in a corporation without creating
a current tax liability in either of the two countries.
"The draft also contains, for the first time in such conventions,
a provision empowering the competent authorities to make adjustment
in liability, including refunds or credits, to avoid double taxation
in appropriate cases.
Such adjustments may be necessary when, for
example, disparate allocations of income are made in relation to
trade transactions between an Israeli and a related U. S. company.
TREASURY DEPARTMENT
October 7, 1964
FOR IMMEDIATE RELEASE:
AGREEMENT ON TAX CONVENTION DRAFT
REACHED BY THE UNITED STATES AND ISRAEL
Agreement on the substantive provisions of a draft income tax
convention between the United States and Israel to promote international
trade and investment and to eliminate double taxation was announced
today by delegations from the two countries.
In addition to provisions commonly found in tax treaties, e.g.,
dealing with permanently established and visiting businessmen,
technicians, students and professors, the draft convention provides
that the United States will grant to its taxpayers who make investments in qualified enterprises in Israel a credit against tax equal
to 7 percent of their capital investments in such enterprises.
Provision is also made for the transfer of technical know-how and
related services in exchange for shares in a corporation without
creating a current tax liability in either of the two countries.
The draft also contains, for the first time in such conventions,
a provision empowering the competent authorities to make adjustment
in liability, including refunds or credits, to avoid double taxation
in appropriate cases.
Such adjustments may be necessary when, for
example, disparate allocations of income are made in relation to trade
transactions between an Israeli and a related U. S. company.
The draft convention will undergo minor technical revision as
a result of discussions held in the past week and will then be
submitted to the respective governments for signature. After
signature, it will be submitted to the U. S. Senate and the Israeli
Cabinet for approval.
The United States delegation was headed by Stanley S. Surrey,
Assistant Secretary of the Treasury, and the Israeli delegation by
Ariel Ariely, Director of State Revenue.
000
D-1360
TREASURY DEPARTMENT
(
Oc tober 7, 1964
roR IMMBDIATE RElEASE
WITHHOWIBG OF APPRAISEMENT ON
CHWRINATED PARAFFIN
The Treasury Department is instructing customs field officers
to withhold appraisement of chlorinated paraffin from England, manufactured by Imperial Chemical Industries Limited, England, pending
a determination as to whether this merchandise is being sold in the
United states at less than fair value.
Notice to this effect is
being published in the Federal Register.
Chlorinated paraffins are a series of compounds having a
variety of uses, such as oil additives, plasticizer-extenders for
plastics, etc.
Under the Antidumping Act, determination of sales in the United
States at less than fair value would require reference of the case
to the Tariff CommiSSion, which would consider whether American industq was being injured.
Both dumping price and injury must be
shown to Justify a finding of dumping under the law.
The allegation in this case was received on September
10, 1964,
and vas made by the Dover Chemical CorporatioD, Dover, Ohio.
dollar value of imports received during the period from ~
1964,
to date was approximately $5,000.
The
15,
1.J.. Ii'
TREASURY DEPARTMENT
Oc tober 7, 1964
FOR IMMIIDIATE REIEASB
WITHHOlDING OF APPRAISEMENT ON
CHIDRINAmD PARAFFIN
The Treasury Department is instructing customs field officers
to withhold appraisement of chlorinated paraffin from England, manufactured by Imperial Chemical Industries IJ.mited, England, pending
a determination as to whether this merchandise is being sold in the
United states at less than fair value.
Notice to this effect is
being published 10 the Federal Register.
Chlorinated paratr10s are a series of compounds baving a
variety of uses, such as oil additives, plasticizer-extenders for
plastics, etc.
Under the Antidumping Act, determination of sales in the United
States at less than fair value would require reference of the case
to the Tariff Commission, which would consider whether American 10dustry was being injured.
Both dumping price and injury must be
shawn to JustifY a finding of dumping under the law.
Tbe allegation in this case was received on September 10, 1964,
and was made by the Dover Chemical Corporation, Dover, Ohio.
The
dollar value of 1Dlports received during the period trom Ma¥ 15,
1964, to date was approximately $5,000.
TREASURY DEPARTMENT
October 8, 1964
FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN SEPTEMBER
During September 1964, 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 $169,822,500.00.
000
D-1361
TREASURY DEPARTMENT
October 8, 1964
FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN SEPTEMBER
During September 1964, 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 $169,822,500.00.
000
0-1361
·
~
)
L_
TREASURY DEPARTMENT
Washington
FOR SIMULTANEOUS RELEASE IN
PEORIA AND WASHINGTON AT 11:00 A.M. ,CDT
FRIDAY, OCTOBER 9, 1964
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT FOUNDER'S DAY CEREMONIES
AT ROBERTSON MEMORIAL FIELDHOUSE, BRADLEY UNIVERSITY
PEORIA, ILLINOIS
FRIDAY, OCTOBER 9, 1964, 11:00 A.M., C.D.T.
Although this is my first visit to Bradley, I feel very much
at home here -- not alone because I've long been a fan of your
classic basketball teams, but because of the many of your
graduates in Government service, including five dedicated public
servants who are now serving with distinction in my own Treasury
Department.
It is a great privilege for me to follow in the footsteps of
a distinguished predecessor, Secretary of the Treasury Lyman
Gage, who sixty-seven years ago spoke at Bradley University's
first Founder's Day and dedicated the original Bradley Hall.
The address he delivered on that occasion calls to mind an
old French saying:
"Plus ca change, plus c'est la meme chose."
Freely translated, this means, "The more things change, the more
they are the same."
Secretary Gage's remarks -- which have a familiar and
pertinent ring today -- were devoted to refuting the pessimists
of his time, who held that rapid changes in society were
impoverishing the people and undermining values, morals -everything that had made America great.
My predecessor categorically rejected these claims and
cited chapter and verse to demonstrate that, in truth, the
preceding forty years had seen great and continuing advances at
all levels of society.
Over the intervening years since Secretary Gage addressed
a Bradley audience, the world has weathered so much tumult and
change that the imagination must strain to its utmost to barely
grasp them. We have seen the relatively simple world of
yesteryear expand into a world of incredible complexity. We have
D-1362
- 2 -
,~
~~
passed through two devastating World Wars, and achieved such
a capacity for mutual destruction that a third World War is now
unthinkable.
Six years after Secretary Gage spoke on this campus, people
could hardly credit the headlines which told of two brothers
named Wright who had actually taken a flying-machine aloft at
a place called Kitty Hawk. We now read without surprise of
earth-created satellites mingling with the other planets, and
of man-made rockets landing on the moon.
But today, just as sixty-seven years ago, there are some
among us who cry havoc. They charge that the rights of the
individual are being overwhelmed by an evil bureaucracy in
Washington, that the morals of our people are distintegrating,
that the United States is somehow losing its role as the leader
of the Free World.
This portrayal of our present situation echoes the unfounded
fears of sixty-seven years ago. One merely has to lift one's
eyes from the trees that too often obstruct our vision and
discover the majesty of the forest around us, to perceive that
the warnings of today's Cassandras are no more soundly based than
those at the turn of the century.
If I may be permitted to borrow a phrase that is seeing
much use today, we all of us know in our hearts that life in
these United States has never before been better or fuller for
more and more of our citizens.
Why is it, then, that men of good will, are tempted to look
backward towards what generation after generation, when in a
nostalgic mood, have labelled the good old days? It is because,
along with its triumphs, the present always brings new and
difficult problems, problems to which the answers are not readily
apparent. It is often far easier to look back at what we know
than to look forward into the unknown. But that is not the way
that America has been built. Nor is it the road to a stronger
and better America in the years to come.
The simple fact is that as we move forward, our horizons
must advance with us. We must continually aim at something
better. We must strive to improve the status quo. For history
clearly demonstrates that when nations or peoples become content
with things as they are or immerse themselves in dreams of their
past, their days are numbered. A more vigorous people will surely
supplant them.
- 3 -
In this Fall of 1964, the main danger that confronts us from
within does not lie in our supposed failure to recapture the
conditions and values of a past that surely could never have been
as idyllic as it is sometimes painted. The main danger is that we
may refuse to face up squarely to the realities of the present -that we may be lacking in the resiliance and strength and
determination to build upon and improve present day realities in
order to assure a brighter future for all Americans -- that we
may permit ourselves to be so distracted by bickering and
suspicion that we will ignore our great national task of hastening
the day when every individual in America will have the opportunity
to develop his talents to the limits of his capacity, unhindered
by barriers of any sort, be they barriers of poverty, disease,
color or creed.
That great task is in some measure shared by every American,
by everyone of our private institutions, and by each of our
governments, local, state and national. For in a democracy such
as ours, the highest public interest must center in the
individual human person and in the creation and nourishment of a
climate in which he can grow and thrive.
One of the basic premises of our democracy is that no man
is exactly like another. One may be blessed with a higher I.Q.
or greater physical strength, have a different interest, or be
more industrious or more ambitious. These are natural differences,
and the very purpose of a democratic society is to afford them
free play. If allowed to flourish, these are the differences
that move America forward and enrich our life.
There are, however, other differences -- differences of race,
of religion, of economic circumstance -- differences that, while
natural enough in themselves, may grow into artificial barriers
that can frustrate talent, deny growth and development, and
withhold legitimate rewards. As long as those barriers exist,
we must struggle mightily to bring them down. For they will
increase in size and power to the exact degree that we relax our
efforts against them.
This is the dual challenge that every generation of Americans
must face anew: the challenge of encouraging individual potential,
and of removing barriers to its growth and development. It is by
meeting this dual challenge in all the changing forms that it
assumes from generation to generation, that America keeps faith
with one of its most cherished commitments -- the commitment to
equality of opportunity for every American.
- 4 That commitment must be of foremost concern to the men and
women who serve our citizenry in government, be it at the local,
state, or national level. And that commitment can only be
carried out in the light of current realities.
One of those realities is the fact that, as the world grows
more complex, government must inevitably reflect that complexity
if it hopes to cope with it. In the early days of our
Revolution, we could rely heavily on local militia to protect
us against foreign attack. Today, we need an armed force
infinitely more powerful than could possibly be developed by
any State government. Today we are building a great interstate
highway system linking all the states with highways built to
standard specifications -- highways which could never be built
without Federal guidance and help. And although none of us are
as yet satisfied that we have found the perfect answer, think
of the suffering and chaos that would fall upon our farm
population if today's Federal government took no interest in any
of our farm problems.
Naturally, we want to make sure that the Federal government
does not intrude on matters that can be handled privately or at
the state and local level. And we want to make equally sure that
State and local governments do not trespass where private
institutions can do the job. Rather we should aim for a close
working partnership between the private sector of our society
and government at all levels -- a partnership in which government
at any level shall enter only when and where it is needed, but
a partnership in which there shall be no holding back when the
necessity for government participation becomes apparent.
One of our greatest needs today is for an ever-expanding
supply of highly trained talent to cope with the mounting
complexities of modern life and the explosive rate of technological
progress. The fact is that, despite the impressive performance
of our economy in recent years, there are still considerably
more than 3 million people unemployed. And those millions of
young people born in the early postwar years are just beginning
to enter the labor force, and will be entering it in everincreasing numbers over the next few years.
At the same time technological change will be moving at an
even more rapid pace than today, eliminating unskilled labor and
steadily raising the level of educational accomplishment
required to hold down a job. There is simply no question but
that our future success in providing work for our people will be
critically dependent upon our success in training them for the
increasingly complex jobs of the future.
- 5 -
That need for training constitutes a formidable challenge
to our entire educational system -- both public and private -as well as to private individuals and private enterprise, and
to government. We are, I am convinced, doing a great deal to
meet that challenge. The new University Hall and the fine new
building that you are dedicating today -- Bradley Hall -- are
both of them excellent examples of how vital a role private
philanthropy is playing in the progress and vigor of our
educational system throughout the country.
In their turn, our States and local communities -- while
often hampered by severe financial limitations -- are working
ceaselessly to help our public educational system keep pace with
the rapidly growing demands that are made upon it.
And, finally, the record of the 88th Congress, which adjourned
only last week, demonstrates beyond question how diligently the
Federal Government is working to meet its share of the
responsibility for assuring adequate educational opportunities
for our citizens. I doubt that any Congress in our nation's
history has accomplished more to further education and training
than the 88th Congress. Let me cite just a few of its
accomplishments:
The $1.2 billion Higher Education Facilities Act of 1963
will aid college construction over a three-year period. More
than 2,000 institutions will benefit from its provisions in
meeting anticipated enrollment increases of 350,000 students each
year.
The $956 million Vocational Education Act of 1963 will
permit many thousands of youngsters out of school and out of work
to obtain the technical and vocational training they need so much.
The Health Professions Educational Assistance Act will
facilitate the construction of teaching facilities for physicians,
nurses, public health personnel and other specialists so
desperately needed by our expanding population. It will also
extend loans to needy students of medicine, dentistry and
osteopathy.
The Manpower Development and Training Act has blazed an
entirely new trail, opening up a new and important way to offset
the problems of technological unemployment.
- 6 And then there is the newly strengthened and broadened
National Defense Education Act, the last major piece of legislation
approved by the Congress before it adjourned last week.
It will
help 250,000 students to pursue a college education and, among
many other things, will also substantially increase the supply of
badly needed teachers.
Through accomplishments such as these, the 88th Congress has
won wide acclaim as "The Congress of Educational Opportunity" -a title that, along with their many other contributions to the
nation's welfare, should serve the members of that Congress as
a just and lasting cause for pride.
Unfortunately, no matter how important a role government can
play in helping to provide opportunities for the growth of the
individual -- in education as in other spheres -- there are those
who still believe that between government and individual
creativity there is some kind of inherent and absolute antagonism.
I quarrel with that view, as I think most Americans do.
I am convinced, as I think most Americans are, that one
of the Government's prime obligations is to foster individual
freedom and creativity, and to promote conditions in our land
in which those qualities can flourish.
This requires a genuinely
free and open society in which talent can seek its awn level with
as few extraneous obstacles as possible.
The attainment of that kind of society must not be the
exclusive concern of anyone sector of our society, but the
common concern of all.
It should be the concern of every
American and every private institution in America.
It should
be the concern of government at every level.
If all Americans, if all our private institutions, if all
levels of government, thus join together, then we can confront
the complexities and challenges of today's world full of confidence
that they shall serve, not as obstacles, but as springboards
toward a greater America for all of our citizens.
000
TREASURY DEPARTMENT
Washington
.?{I
FOR SIMULTANIDUS RELEASE
IN NEW YORK AND WASHINGTON
AT 12:00 NOON, EDT
THURSMY, OCTOBER 8, 1964
'-
REMARKS BY THE HONORABLE ROBERT V. ROOSA
UNDER SECRETARY OF THE TREASURY FOR MON:m'ARY AFFAIRS
'ro THE NEW YORK CHAMBER OF COMMERCE
AT THE CHAMBER, 65 LIBERTY STREEr, NEW YORK, NEW YORK
THURSDAY, OC'roBER 8, 1964, 12: 00 .OON (EIYl')
M:>NEY FLOWS AND BALAJ'lCE OF PAYMENTS ADJUSTMENr
This speech may have more than the usual reasons for making
J'/J:f
efforts of this kind disappointing; so I hasten to acknowledge them in
advance.
One is that I will do my best, despite any subconscious
inclinations to the contrary, to 9.votd making any comment that could
have a bearing of any kind on
th~
iW:;..,1,,·;>t t 3 c'.lrI'ent interpretations of
where monetary policy may now be heading.
Another is that I will also
do my best, while suppressing all natural inclinations, to make no
comment that could bear in any conceivable way upon the course of the
current election campaign.
And a third is that I have not been able to
finish my text in time to permit release to the press in advance, so
that I will probably stray some distance from the few prepared remarks
that I have been able to set down.
Behind that defensive barricade, I would now like to talk with you
for a few minutes about some of the implications of the work that has
been going on recently to appraise, and where necessary to improve, the
arrangements the world now has for assuring adequate international
liquidity.
'-
- 2 Last week, talldng in Philadelphia, I had an opportunity to
describe the steps being taken to improve further the arrangements
for international financial cooperation -- arrangements that have
been expanded rather quickly in the past few years and for which we
now need some more orderly regularization.
Next week, at a meeting
of the National Industrial Conference D:>ard, I will have an
opportuni ty to elaborate same of the arguments that can be made for,
and against, various proposals that have been made for adding to
international liquidity.
I refer, of course, to suggestions for
introducing in the future some new form of international reserve
asset, to be used alongside gold and the foreign exchange which has
supplemented gold, most notably the dollar, the pound sterling, and
for some parts of the world, the French franc.
Today, I propose to leave both cooperation and the creation of
new reserve assets aside, and take a look instead at same aspects of
balance of payments adjustment.
That means, of course, the processes
through which countries in external defiCit, or external surplus, get
themselves back into equilibrium.
And as all of you lmow so well,
when the overall payments flow of a bUSiness, or a nation, can be so
managed that current receipts closely balance current outpayments,
the need for an idle balance of working cash, or for drawing on
credi t, can be kept to a minimum.
'lbat is why any methods that can
27
- 3-
be relied upon to l1m1t, and reverse, a tendency which one country or
another develops toward heavy balance of payments deficits, or another
develops toward large surpluses, Will also contribute importantly toward
reducing the over-all need for liquidity itself.
There is often a dangerous propensity among us to feel that more
money is the adequate answer to any problem -- until, of course, we find
that an excess of money creates inflation and intenSifies imbalance.
In large or increasing amounts, liquidity may only mask over for a time,
rather than help to resolve, the real disparities that develop among
countries in the flow of trade and payments.
In international affairs,
as in the home economy, the need is for ample, but not superfluous,
liquidity.
And it is one of the built-in safeguards of a system baaed
upon credit -- credit that rests upon appraisal and judgment -- that a
reasonable balance can be found.
. The mechanism itself tends, with a
measure of over-all guidance from the financial authorities of government,
to be self-adjusting.
It is :f'U.lly as important, moreover, to find ways of l'educing balance
of payments swings as it is to assure the reserves or credit facilities
needed to finance imbalances over the period that correction back toward
equilibrium is taking place.
That is why the United states, after seven
lean years of balance of payments deficits, must get back to equil1brium
in real terms.
monetary magic.
This cannot be accomplisbed through any mirror trick of
We must go through our own process of adjustment.
- 4 1 need not repeat tod~, alch as I do wish to aapbasile, the deta:1ls
ot our current national balance ot
~nts ettort, as theBe baTe been
workina theuelves out through largU' exports, reduced govenaental expenditures abroad, scme inflow of capital to otfset our large outflows, and
the interaction of ma.ny other torces. '!he tusion ot.private effort and
Government st1lllulus has, at the sradU&l but determined pace which usually
characterizes fundamental changes brought about throush the market place,
prodUced reassuring results.
We have, it now seems clear, been on the right path -- promotins
investment for greater productivity as the basis for price and cost
stability, and. evolving an Wlprecedented change in the ''mix'' of fiscal,
monetary and debt management policies as the Government's prinoipal
contribution toward this a.1.m.
'Blough the United States still has the
most russed part of that path ,. et to travel in order to reach real
equillbrium, and thoush we are now at the stage for intensified rather
than relaxed effort, it is possible to begin to read some lessons f'raIa
this experience.
The representatives of the various governments which meet in
Working Party 3 of the
O~D
have recently been asked to Jake a special
effort to distill, from the experience of all these countries since
convertibility became general at the end of 1958, any "rules of the game"
2f
- 5 that might improve the processes of baJ.a.nce of payments adjustment among
nations.
Without anticipating the results of that major undertaking,
I would like to suggest some of the conclusions that seem, at least in
my
judgment, already warranted as to (1) the conditions that must be
placed upon adjustment
aims, (2) the natur'e of differences among
countries for which any "rules" must be adapted, and (3) the methods
which can appropriately and effectively be used to bring about
equilibrium.
The days of simple reliance upon monetary policy, for any and
all cases, I am going to dare to suggest, may possibly be gone forever.
While there will still be many cases of imbalance for which monetary
policy can provide the principal corrective, and while it will no doubt
play an active role in all, the patterns of its influence will probably
be increasingly varied; the range of appropriate variations in interest
rates may begin to narrow; and the complex industriaJ.ized economies may
find their own free markets creating so many new forms of liquidity
instruments that the traditionaJ. methods and criteria
of monetary
control may have to be re-examined in a number of these countries.
These are not meant as flat assertions; rather as provocative
questions.
But perhaps you may agree they are questions worth asking
if I am able to sum up what I have in mind on the limiting conditions,
the nature, and the methods of the adjustment processes which countries
would now find sufficiently acceptable to be relied upon.
- 6 1.
Limiting Conditions
One way of looking at the limiting conditions is to list the things which
most countries simply cannot any longer deliberately set out to do.
(a)
They cannot intentionally, for more than a few months at most, attempt
to stop their own domestic growth; few could dare attempt to turn it
backward; though its upward pace can, of course, be altered.
(b)
They cannot deliberately, with the exception of transitional or
structural changes of comparatively short duration, increase unemployment -- either of men or of resources.
(c)
Tbey cannot induce severe price deflation, with its implications not
only for growth, and employment, but also for profits.
(d)
They cannot for long pursue policies of intentional inflation, though
this is a somewhat weaker constraint than that of deflation.
(e)
They cannot make frequent large changes in their exchange rates,
once they have reached the stage of establishing a parity.
Or to put these conditions positively, most countries are now committed
to support sustained domestic growth, to assure maximum employment, to avoid
depression, to check accelerating booms, and to maintain fixed rates of
exc~e
(within the narrow margins of variation permitted by the International MOnetary
fund ).
Is it to be wondered that, in these Circumstances, once convertibility
was re-established among most of the industrialized countries, the earlier
forms of monetary action, which so often relied upon correction through contraction, have been succeeded by approaches that have seemed to some of us, at times,
a bit unorthodox?
J
- 7 2.
The Nature of Significant Differences AmOng Countries
As approaches have changed, it has also became increasingly clear that
there are vide differences among countries in their sensitivity to one mix
of policies or another, and that any new "rules of the game," if countries
are going to be able to live by them, will have to be adapted to such
differences as the following:
(a)
Differences in the stage of development, of manpower and resources;
(b)
Differences in the composition of product, as between raw materials
and manufactures;
(c)
Differences in the proportion between external transactions that
flow through the balance of payments and total transactions (that
is, between foreign and domestic transactions);
(d)
Differences in internal market structure, in restrictive
practices, or in domestic subsidies, not only for goods but also
for various kinds of capital and credit;
(e)
Differences in comparative size, causing differences in the
extent to which a given country must take into account the
effect of its own actions upon all others;
(f)
Differences in the extent to which a country's currency, or its
credit facilities, or its capital markets, may be utilized by
others, vith a resulting convergence upon reserve currency
countries, for example, of many of the pressures released or
exerted by other countries.
- 8 -
This is by no means an exhaustive list.
It does starkly underline,
however, the extent to which modern progress has meant a fanning out of
countries into a number of general types, in contrast with earlier periods
when all countries were much more nearly the same -- and when perhaps two
groupings could account for nearly all of them.
•
I do not imply that
progress has been synonymous with chaos, but I do ask whether we should
not expect that our methods of maintaining viable balance among countries
should have become as complex and varied as are their national economies,
and the commitments and priorities of their domestic economic policies.
3.
Methods of Adjustment
If my questions have any validity, then, they suggest that the United
States has been making the right kind of an attempt, whether or not we
have found the right combination of answers, in our own balance of payments
program over recent years.
Trial and error can be expensive, if not des-
tructive, so that neither we nor other countries can afford to hop about,
changing the direction or emphasis of the attack on the U. S. defiCit, or
upon the German or French surpluses, for example.
What we can do -- at
the price of more wear and tear in trans-Atlantic jet travel than may be
sensible or sustainable for the long run -- is to maintain close and continuous contact with other countries, among whom the similarities may be
somewhat greater than the differences, and to submit each other to persistent
cross-examination and critiCism, particularly concerning our interactions
upon each other.
2
A
,-~
- 9 -
It is out of just such exposure that much of the stimulus for, if
not the actual content of, a considerable part of our own mix of balance
of payments policies has been evolved.
And in the process we have, so
far as the United States is concerned, found ourselves developing a series
of measures on the governmental side which could, quite understandably,
be critically viewed as patchwork improvisation.
all been a pattern.
But there has through it
Our starting premise has been price and cost stability.
Our primary effort has been to use fiscal and monetary measures to stimulate
the productivity that will support growth and provide expanding incomes
and profits within the framework of price stability.
At the same time,
we have trimmed Government spending of dollars overseas, tried to spur
exports, and where necessary put a brake upon an accelerating outflow of
either short-term funds or long-term capital.
Meanwhile, as the deficits
gradually shrank, without imposing harsh repercussions on others, we sought
such means of financing the deficits that remained as would, over the longer
run, also make some contribution toward more diversified credit facilities
for the international liquidity needs of the future.
What I think we also learned in this process (and this explains the
title I have selected for these remarks), is that some of our traditional
conceptions -- of reliance solely, or mainly, upon the "tight money" that
depends upon very high interest rates to overcome a deficit -- are not likely
very often to fit the needs of the United States economy, nor the conditions
- 10 -
which most countries impose on the adjustment process, over the years ahead.
And I suspect that some of the surplus countries are reaching similar conclusions, from the other side.
For the impact of really tight money, or severely constricted credit,
in the United States over these past several years would have been of
doubtful assistance, to say the least, in progress toward adjustment in
real tenns, while perhaps attracting an inflow of funds that would have
given us the superficial satisfaction of apparent balance.
And conversely,
easy money in the rapidly expanding economies of Europe would have fanned
the inflation which their rising costs and wages were already causing, leading at the same time to an outflow of funds that would have given a superficial impression that their underlying surpluses were disappearing.
The main reason for these paradoxical developments is that our traditional views on the role of monetary policy in correcting international
imbalance presumed a different sort of world.
Countries with external
deficits were supposed to have full employment and rising prices; countries
with external surpluses were supposed to have underemployment and comparatively low prices.
For these conditions, tight money could meet both the
foreign and the domestic needs of the deficit country; easy money could
meet both the external and the internal needs of the surplus country.
I do not want to say that such circumstances will not recur.
What I do
say is that we cannot presume that this Will be the only pattern.
- 11 -
Within the past year there has been further sharp evidence of the
new circumstances, and their significance.
as examples.
Take Italy and the Netherlands
Without doing justice to either, I may perhaps generalize
that Italy's situation at the beginning of the year was one of rising
external deficit coupled with severe inflationary pressure at home -- on
the surface, one of the classic cases.
Yet Italy was also undergoing the
most extensive structural readjustment, internally, of any of the leading
industrial countries.
The government acted; the private sector responded.
There were some new taxes; there was a firm control over credit, including
limitation on foreign borrowing by Italian banks; there was no increase
in the discount rate.
Following announcement of a tailored package of
short-run external credits, the situation was turned abruptly around.
Italy is now in surplus.
accomplished.
We all hope a lasting improvement has been
But to have relied entirely on further increases in
interest rates, in the circumstances, would indeed have only caused an
inflow of funds that might have defeated -- not supported -- the over-all
effort to restore equilibrium.
In the case of the Netherlands, without reviewing all of the relevant
story, a deficit had also developed early this year after some period of
surplus on balance.
The govermnent had, somewhat earlier, deliberately
accepted a controlled degree of inflation as part of the corrective needed
for restoring a balance in payments, but that seemed to begin to get out
of hand.
Internal restraint became necessary.
The credit markets were
- 12 -
tightened and interest rates raised to heights that had not been seen
in the Netherlands for some years.
The result?
An unprecedented volume
of funds has been repatriated or invested in the Netherlands Just as its
balance of payments seemed to be moving back into equilibrium.
Tight money
has not, at least not unmistakably, been the sole and satisfactory answer.
It is such experience that has persuaded so many of us that we must
try to develop new methods, or new combinations of old methods, among most
of the more industrialized countries over these past few years.
It is cer-
tainly not a reason to turn toward selective controls of any kind, for the
longer run, and certainly not to become restrictionist instead of expansionist in our outlook for freedom of trade and payments.
It is to say,
as Chairman Martin has said so often, that none of us can be isolationist
in economic policy.
And I would add, as I am sure he would, none of us can
afford to be rigid in the development of economic policy.
"'.lIt
,Sl..i!:JS~
A. t.
~!.t.urdy, ~t,ober
~.
·5?Ar,":'"i,
10, l?64.
RF.3i:LT~;
)F
U~.jUkI·S
...t:.t·f"LY
;3~
l.i. .lfJo1oJUtiQ
rt.. rr...\U"1
;Je"art.-nt. ~ 1.." tmtrd.ac \1,.' the \eDde.n I . 'wo . . . .
'-0 be _ addi\lo.1 1__ or tbe bUl. da'-4 ~.
and t.he ather .....1•• to be dated ~t.oee .. 15. 1961l, wh1a.b WIre ott..... .. 0811'-'-
rrauury tdl.la, one _riet
opened . , \he Federal
r.......
BankI . .
~\obIJI
,.
TendeN weN 1nY1te4
.. t.he...uout.s, of 91-daT b},li..... tor $l,())O,000, 'm, or t.berwab_'-.
The _taUt 31 '-hi Wo ..ri•• are _ 1011_.
RAI\~i ,')p'1CCWiffln
91--., '1'I'MnI'T
C(JtnT ~ nn K ['-':'"
?rloe
f?3JI !I
high
1.-
A......
btll.
".ar....
'
U
!!I!'l..IIIII
J.'"
11,.., rs..av, taUl
_\111'11)1 .~~L'
•
!!. lJ6S. I
..,r-. fiiI.,. •
AM 11 Rate
I
,.,611
t
_t.ur1!!c JII!!U:g!
rw ....vw_
at
Ijijiiii;
Prloe
iI.ll1 i7
I
,..,..-
19.(9)
). Sf,,& ,
•
91.11$
99.09S
).C;~OI
".ll6
).,..,
aI IaepUq - t.en.... 01 $lSO,OOO. ~
l l..... ~_
'f peJ"OeDt; ot tal. aacND\ or 91....,. \dlla bid tor at. \he 1.. prUe .......... .
Ia? perca' ., t.ha . . . . . of 18~ Wl. '-141 t . M ... 1_ tftee _ .... , ... '
TOTAL.rt:l\'11<:R~~ A;' PLl ~;j\ r')i'i A::D AGe;:;?!;; D lJT "DiU~L H.i"c<' tlVI nIJfiUCfSa
11
&uep\_ .. ,..........
DlaV1ot.
kOe\on
lwlt" For
~ Li,963,OOO
New ~ork
Ph11&del~lh1a
1,464,S2),'JtJO
Cle'Nlaod
3.3,B92,JOO
V,&,8,,),)o
UJ.an....
12,)55,:>:.10
i~l,~6-J,lOl)
:~iohltOlld
Chloago
5\. Louie
').;\~MMPol1.
JC:ana_ Gl\)'
1
fell..
t J11L;j
~
L ,b,:h,':,)JO
4' ,65J,~Jl)o
2), 7t~3,j)OO
San "'rancisoo
II
'
JC' ,4Le,liJO
29,17),'..):)0
1&, 12L,)\)O
?2,152, 337,!.W
.c..2.....W
•
11.010.tdJ
J
ApPl1ecl YQf'
1
$
614,7)),000.
18,8",000.
19,86t,())().
12,O'.i5,C),)O I
J4,512,())O.
l)6,02S,O'JO,
4l,267,QOO,
18,)8),00).
29, S18,ocX)
1
16,12),000
I
161 ,6~,ooo:
;£,2>0,060,
*'.0)9,000
1,61),)86,000
8,961,000
1t.8,1al4,ooo
6,704,000
l7,Wa7.000
111,019,000
15,619,{)'JO
8,178,000
14,1»,000
U,228,ooo
~,4SS,QQO
JOO!I ii,09l.6oP,oci
laelurl•• $26),2hl,JOO n~'1t.1'ft \endel"tl accep~d at t.he &"""e jlI"lM . ,
Include•.~86,02),{):)Q nooo~"t.l ... teni.... aeoe-p\ed at. t.be awfti.e priM at
:a • oCN;*' ia_ ot tot,. . . . 1easUa and tor the __ ~ 1rmNtt.M, \III
t.h. . . bill • .-1. p".1da jlel.da or ).66~, tor t.be l'l-d.q bUl., .... 3••'. , .
le2~- billa. Iat.ere.\ ... ~. on bUl.a ar. quoted 1. \.a,... or _ _ cI1M-'....wm "lilted to·) t.r,. t&04l .>;:ni i)! the
payable at. aa'uri:", ht.her
1MIUft\ 1tmtned and t.Leir l~ 1n ae\ul nuaber or cIa¥- rela\ed '- • )60 ",
III 00ftt.raa\, yiel.U OD O@I"\ltioat._, ft~t4., &Ad bonda are oa.putecl 1a \e1'M .,
.8\ Oft t.he
lnT•• \e4, and reld. u-. ft~J' of ~ Z 11nlaa 1n _
~ peri.)d ,') t.l). actual n_ber r4 tlaj·. 1n t.he ver1ac1. with _ l. .Ml . . ._
inc 11' 1I01"e \haft one ooupon perlod 1. 1m 01 Y.d.
om_
..owl'
tMa.
iIII.-
TREASURY DEPARTMENT
October 9,
RESULTS OF TREASURY I S WEEKLY BILL OFFERING
The Treasur,y Department announced last evening that the tenders tor two series ot
euury bills, one series to be an additional issue ot the bills dated July 16, 1964,
d. the other seri.s to be dated. October 15, 1964, which were ottered on October 5, were
.~d.
at the Federal Reserve Banks on October 9. Tenders were invited for $1,200,000,000,
thereabouts, of 91-~ bills and for $1,000,000,000, or thereabouts, of 182-day bills.
e details of the two series are as to11ows:
9l-~ Treasur,y bills
:
182-day Treasury bills
aaturing January 14, 1965
maturing April 15, 1965
Approx. EqUiv.
Approx. Equiv. :
Price
Annual Rate
:
Price
Annual Rate
99.098
3.568%
:
98.118
3.723%
High
Low
99.093
3.588%
:
98.115
3.729%
Average
99.095
3.580%
98.116
3.726%
Excepting one tender of $150,000; bl Excepting two tenders totaling $1,000,000
percent of the amount of 91-day bills bid for at the low price wu accepted
percent of the amount of 182-clq' bills bid tor at the low price was accepted
rAL '!'ENDERS APPLIED FUR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
;NGE OF ACCEPTED
MPEi'ITIVE BIDS:
!I
§1
Y
bi.trict
~oston
~~ev York
.h1lade1phia
eve1and
lkicbmond
~tlanta
~hicago
~t. Louis
~apo1is
City
tlll888
blLlas
$an Francisco
TOT1LS
Applied For
$ 41,963,000
1,484,523,000
33,892,000
29,868,000
12,055,000
41,860,000
188,835,000
48,653,000
23,743,000
32,448,000
29,773,000
184,724,000
$2,152,331,000
:
Acce~ted
Applied For
$,070,000 : $ 26,039,000
674,733,000 z 1,673,386,000
18,892,000 z
8,967,000
29,868,000:
48,414,000
12,055,000:
6,704,000
34,512,000:
17,441,000
136,025,000:
171,029,000
41,267,000:
15,629,000
18,383,000:
8,118,000
29,518,000:
14,133,000
16,123,000
11,228,000
161,634,000:
90,455,000
$1,200,080,000 sf $2,091,609,000
Y
Accepted
$ ll,984,000
8,34,056,000
3,691,000
18,925,000
4,575,000
9,303,000
65,389,000
11,203,000
4,478,000
10,014,000
6,122,000
20,808,000
$1,000,548,000
!I
Includes $263,241,000 noncompetitive tenders acoepted at the average price of 99.095
InclUdes $86,023,000 noncompetitive tenders accepted at the average price of 98.116
On a coupon issue of the 8ame length and for the same amount invested, the return on
these bills vould provide yields ot 3.66%, for the 91-day bills, and 3.85%, for the
182-d.ay bills. Interest rates on bills are quoted in terms of bank: discount with the
return related to the face aount ot the bills payable at maturity rather than the
lIlount invested and their length in actual number of days related to a 360-day year.
In contrast, yields on certificates, notes, and bonds are cCliputed in terms of interest on the _ount inT.sted, and relate the number of daya rema i ning in an interest
P81JDent period to the actual number of days in the period, with semiannual compounding 11' aore than one coupon period is involved.
~-ll64
ApPENDIX
II-Page 5
Note8 to Accompany Table8 on Rescl'l'es and Credit Faf'ilities
'/'(JI)le
('0111
rn'll
No.
I. Gold. Figures are published data from International Financial Statistics.
2. Foreiyn Rxchanyc. Figures arp published in I FS.
:~. Hllhtotal of (I) and (2) represents the sum of gold and foreign exchang(,
(primary reserves).
4. Gold Tranche, including super gold tranche, is published in IPS.
5. Sp('rial U.S. Rands represent U.S. Government nonmarketable obligations
payable in foreign currencies or in U.S. dollar~, with an original maturity of
more than one year, and convertible at the option of the holder into shortterm Treasury obligations.
6. Swaps Used by Other Party represent that part of a reciprocal swap arrangement that corwsponds to a swing credit that has been drawn upon by the
othpr party, and is therefore an asset of the drawee country. Where swaps
have been activated and amounts arc held in the form of foreign exchange,
they appear IIndpr "foreign exchange". The total amounts for swaps
included in the tables will always add up to twice the original amount
available to one party in the case of a group of countries that includes both
partie~ to the swap.
7. Miscellaneous includes, but is not limited to, forward or other availabilities,
long-term mohilizable securities and other foreign assets that have been
acquired by monetary authorities, such as IBRD notes, etc.
-
N
TaMe Coinmn
No.
9. Total Rc.~erv('s represent the slim of primary and oth('r res('n·es. Total may
not be' statistically exact since some countries treat special IT.H. bonds as
part of foreign exchange re8erves and therefore there may he some elpment
of double cOllnting. This also applies to Columns 8, 18 and 1!1.
10. Swaps Unactivated. This repre8ents the standby facilitif's that have heen
established under swap agreem(mts bllt not activated in til(' sense of reciprocal acqllisition of foreign exchange.
11. 1M F Standbys. This column would include standhy facilities that can be
drawn upon without further policy review; thpw was OTW of these in existence
on Decemher :~ 1, 196:).
12. Other Credit IJines. This column wOllld incllldp bilatpral or other assured
credit lines that may exist now or in thf' futur('.
14. Other I At F Tranches. The amount shown in this ('OIUT.1l1 (tog('thf'r \\"itlt
the amount in column 11) represents for each country the undrawn portion
of four credit tranches, which if drawn in full would bring the currency
holdings of the IMF in that country's currency to 200 pprcent of qlIota.
15. Potential Credit Lines. This column rpgisters the potentiality of other credit
facilities that may be negotiated, or may be available aftpr TlPgotiation undcr
some kind of policy review.
18. Total of Other Reserves and Credit Facilities. This is the SII m of all the items
except gold and foreign exchange reserves.
ApPENDIX
~
II-Page
4
TABLE IV-OFFICIAL RESERVES AND CREDIT FACILITIES 1
December 31, 1959-December 31, 1963 [In billions of U.S. dollars equivalent)
OREDIT
RESERVES
GOLD AND FOREIGN
EXCHANGE
The Eight:
1959.. ....•.......•.............
1963.. ...................•......
Gold
Foreign
exchange
Sub·
total
(1)+(2)
(1)
(2)
(3)
9.34
13.62
Change ....................... +4.28
Switzerland:
1959.. ...................•......
1. 93
1963. .....•.....................
2.82
Change.......................
The Eight and Switzerland:
1959.. ........ ...•... ...........
1963.......... ... ..... ..........
0
~07
0
+. 89
+.12
+1.01
o
11.27
16.44
6.20
10.13
17.47
26.67
.86
1.80
+3.93
+9.10
+.94
.24
.17
2.76
2.65
.07
.49
-.03
Change ................•...... -3.91
Reserve Countries:
1959.. .......................... 22.02
1963.. .......................... 18.08
Change....................... -3.94
Group of Ten:
1959 .... ' ... .... ........ ........ 31. 36
1963............................ 31. 70
Change.......................
Group of Ten and Switzerland:
1959. __ .... __ ....... __ . __ .......
1963 ....... ____________________ .
Change .......... .
Rest of World:
1959 ..
1963 ..
(7)
(7)
(8)
.86
6.07
15.41
o
n.3.
.86
o
.61
2.57
9.88
23.50
.16
1. 80
n.a.
+3.81 - - - - - - - - - - - - - - - - - - n.". +1.71
~w
+.M
+.A
+."
&00
19.51
15.60
(6)
Sub·
total
(4) to
Total
reserves
(3)+(8)
(9)
Swaps IMF
unactl· stand·
vated
bys'
(10)
(11)
-----
-.07
o
-.10
0
.13
.00
.00
n.a.
n.a.
+.05
+.08
n.a.
+.13
.66
0
.24
n.a.
n.a.
.86
2.70
+.66
+.24
n.a.
+1. 84
0
0
--- --- --- --0
0
0
n.a.
.07
0
0
n.a.
.49
--- --- --- --n.a.
+.42
o
o
+.42
16. ~7
26.07
o
o
.95
o
--- ---
o
o
SW
.00
o
--- --o
+1.14
+.08
18.33
0
o
29.27
1. 03
o
---#&00
+10.94
2.82
3.14
+%
0
+1.03
0
.50
-----
Sub·
total
(10,11,
12)
Other
IMF'
tranches
(12)
(13)
(14)
+82
+.50
+3.95
+4.29
+.40
+.61
+.21
n.B.
+1. 22
+5.51
+3.03
6.«
3~~
~93
10.51
45. 03
3. 33
0
. 66
0
. 29
n.a.
n.B.
2.93
4.28
42.66
49.81
0
3.11
~~
+4.07
+6.30
+.40
+.66
+.29
D.a.
+1.35
+6.65
+3.11
17.25
20.24
.32
.61
o
(15)
(16)
Total
Total
credit
(8)+(17)
facilities
(13)+ (16)
(17)
(18)
Grand
total
(9)+
(17)
(19)
---------3.80
3.74
a~
.95
aH
9.80
4·69
1,-66
7.26
20.07
30.76
+.95
-.06
-.00
+.89
+2.60
+10.69
o
.08
+.08
o
o
o
o
o
o
o
o
+.08
a~
.08
o
.21
t.OO
3.'8
+'!ll
+1.t.
4.66
7.47
".13
34· 04
-----
1. 03
aH
o
o
+1.03
-.06
-.00
+.97
+2.81
+11. 91
o
I. 95
1. 44
1. 95
1.«
1.96
2·45
2.0'
t.94
4·77
6.69
+.51
+1. 01
o
-.51
-.M
+.60
+.92
+.8'
4.12
4.12
~u
~u
4·1!i
6.70
6.12
6.79
26.63
82.60
o
o
+1.58
+. 67
-3.03
2.59
6.07
5.56
6.07
5.56
6.07
8.16
8.14
fj.73
30.40
28.19
+2.59
-.51
-.51
+'.08
+1.59
-'.21
o
3.54
9.87
9.30
9.87
9.30
9.87
12.84
1'.80
16.99
50·47
68.55
+3.54
-.57
-.57
+'.97
+4.19
+8·48
o
3.62
9.87
9.30
9.87
9.30
9.87
12.92
12.80
17.'0
6£.53
62.23
+3.62
-.57
-.57
+3.05
+4·40
+9.70
o
.05
3.03
4.18
3.03
4.18
3.03
4.•3
3.35
4·89
20.60
£5.13
+.05
+1.15
+1.15
+1.20
+1.54
+4·5.'1
12.90
13.48
12.90
13.48
12.90
17.15
16.15
22. 09
73.13
87.36
+.58
+4·25
+5.94
+1 ... 83
a
o
.51
+. 51
0
.51
+.51
o
.32
n.u.
17.57
0
o
.05
n.a.
.66
.05
20.90
o
o
----- --- --- ---Change .. __ ..... .
n.a.
+.34
~W
+1. 90
+2. 99
+.29 +. 05 o
+3.83
+ 05 o
All Countries:
60.23
o
1959 ..
nAA
19.10
66.98
3.25
0
n.a.
3.25
0
o
.29
1963 ..
mw
~5. 07
65. 27
3. 94
. 71
n.n.
4.94
70.21
3.16
.51
---- --- --- --- --- ----- --Change .. __ ....... __
+5.97
# _ +& +71
+.29
n.a. +1.69
+9.98 +3.16
~~
+.51
BIS:
1959.
-.U
o
-.~
0
0
o
n.a.
0
-.13
0
o
.15
1963.
-.~
o
0
0
n.a.
.15
-.13
.01
- .•8
o
- - - - - - - - - - - --- - - - - - - - - - - - --- --Change ............ __ .... __ ... -.15
o
-.15
o
o
+15
n.a.
+.15
o
+01
o
Other International Organizations:
1959 __ . __ .... _____ ............ __
2. 44
o
o
o
n.a.
0
o
2.44
0
o
2·44
1963. ____ .. __ ...................
2.36
o
2.36
o
n.a.
0
2.36
0
o
o
o
--- ------ --- --- --- --- ---Chan!(e __ .... __ ............... -.08
o
-.08
-.08
o
o
o
n.a.
o
o
o
12.66
14.56
Sub'
total
(14)
+(15)
9.80
4· 77
2.00
1. 04
+.34
o
Poten·
tlal
credit
lines
3.80
3.74
o
n.a.
2.00
21.51
0
o
o
.05
n.a.
1.09
1.58
16.90
o
.21
o
- - - - - - --- --- --- --- --- ---- --- --o
n.a.
-.91
-3.70
-.96
o
+21
+.05
-4·61 +1.58
o
.24
t2.26
2.07
o
n.a.
2.07
24- 53
0
o
o
.51
.38
18.1,11
1. 53
.05
n.a.
1. 58
20.04
2.08
-----3.80
-.54
o
+.05
n.a.
-.49
-4.29 +2.08
+. 51
+.14
6.31
o
0
n.a.
2.93
37.67
2.93
40.60
0
0
.61
.21
10.26
n.a.
4.15
46. 11
3. 03
. 51
41.96
3.33
--- --- --- ----- --19.51
15.81
33.29
34.52
~w
~63
Other
credit
lines
------ ---- --------- --------
.13
.25
Change ....................... +5.17
United Kingdom:
1959. ...........................
2.51
1963. .....•......•.......•......
2.48
Change.......................
United States:
1959. ....................•......
1963............................
Special Swaps
Mis·
Gold 2
U.S. used by cella·
tranche bonds other
neous
party
(5)
SUBIECT TO NEGOTIATION
ASSURED
OTHER
(4)
FAOILITIES
1. 01
1. 58
+1.58
o
---
-----
-----
--~
I
2
3
Data for other reserves and credit facilities are incomplete and partly estimated.
Including snper gold tranche.
Beyond the gold tranche.
o
3.67
+3.67
o
.01
+.01
o
o
o
+.58
o
o
o
o
o
o
, Including standbys subject to policy performance.
n.a. Not available.
o
o
o
+.01
o
o
o
o
o
a
.01
-----
.16
-.13
-.1'
+'16
+.01
o
o
t·44
a
-.08
2.36
II-Page 3
ApPENDIX
TABLE III-OFFICIAL RESERVES .\ND CHEDIT FACILITIES
lIn hillions 01
l)l'crmber 31, JV53-J)pcembcr 31,1963
\J.~.
CREDIT
RESERVES
GOI.O AN f) FORElGN
EXCHANGE
SubForciJ!1l
exchange
total
(1)+(2)
Sppcial Swaps
Oold 2
\; .S.
usel] by
tranche honds
other
~Iis
C(,jlaurous
(2)
rl'.:'('rVl'S
total
(3)+(S)
(4) to
~waps
1:\11<'
unacti- :-;tandhys J
vall'd
lU!");{.
(:I)
(4)
(5)
(6)
(7)
(8)
(9)
o
o
n.u.
('hangl'.
Bwit i',('rland:
IH[)3. _______________________ _
1U1i3 ____________________ _
_______________ _
('hang'~l
'nu' Eight an(1
4.74
9.88
8.77
£3.60
.26
1.80
+9.59
+:;.14
+14- 78
+1.54
2. X2
.31
.2.5
I. 77
3.07
o
o
+1.36
-.06
+1.80
o
rio 49
lti.44
5. 05
10.13
Zli. fi7
.26
I.HO
. +10. g,)
+5. OX
+16.08
+1.54
2.26
2.48
~
.17
2. 6~
2.lifi
.12
.49
11
+.11
+.37
I. 46
~witzl'rland:
19,.3 ___ _
1963. ___ .. ___ _
Chan~.·_
4.03
13. t;~
(10)
(II)
o
o
o
o
llnih'd Kingdom:
19.'")3 ____ ._
1963 ___________ _
Changl' ____ _
linit(ld Stulc.'''':
195iL.
1963 __
Chang". _____________ .. _
Rl'$t'fVt.'. Countril's:
+. 22
22.10
10.60
---- -6 ..00
19,53 __
1963 ____________ .
24.3t)
18.08
Chang" _______ _
Group of Ten:
-6.28
1953 __
1963 __
~.39
31. 70
Change _______________________ +3.31
Gro~£~!_:'~~_~~~_~~~it~~~~~~~:____ _
lO.26
_____ " ._______________
-.20
(,han~l'
Othl'T InLt'rnIlLionl-.l OrJ;!:llnizations:
1~ ...)3____________________________
19113_____________________
('hu.n~\'
___ _
~ \\~;~~~~f{~r\~·,:~;:i~.i'~:~.~.:~;:~~::.t~:;·"ttt
1.H6
2.36
--+. 50
. 13
+,0,0
+.08
n.a.
+.13
+1.~"
+. 08
.95
+.9.0
o
.08
II
o
o
o
.66
.24
n.a.
n.a.
.26
2.70
10.80
29. £7
0
1. 03
+.66
+.24
n.".
+2.44
+18.47
+1.03
n.".
f.66
0
3·14
.50
. .oJ
+.48
+.50
+.5!
n.a.
o
D.3.
+.37
+5.24
o
o
-----
0
(1M
(If;)
(13)
o
.95
+,9;.
(14)
1. 4X
3.74
+~.
o
2tl
o
. os
o
o
(J \/)
(i')
1. 4X
:1.74
4· li Y
171,
7. eli
+226
+'1.21
+,56t
1·4l'l
{)
II
II
ox
o
+.08
( 171
1171
o
IO.M
.iii. 71i
+eo
t6
1.77
!I
.j
iX
+O~
+£1
+1. 61
I. 48
1. 4X
3.74
I. 4K
3.74
4 77
I 74
7 47
·~41)4
u
+1.03
+2.26
+22ti
+,~.2.'I
+6.7:i
+tI 71i
o
o
1.30
I. 44
I..~O
1.01
1.30
1. 44
1.41
2·46
e. !i4
.'.9Ii
6 . .59
+IW
+.14
+. 14
+1.1.5
+16~
+1. Ii.')
o
~. 7[)
I.~
2.75
4.12
t76
£Ii. U
4.12
6.70
4.12
Ii. 79
+15X
+1.37
+1.:17
+2.96
+£67
-,'l.lit
4. 0.5
o
°
U
4.05
4.0.0
~~
5. !l6
.~.
~~
o
It. tH
Ee.60
f)u
X.16
6.64
9.73
.'0.18
f8.19
+1.51
+1.~1
+410
+4.19
-1.99
5.5.1
9.30
5.58
7. tX
~0.69
12.1I~
If!. 99
68.95
+18. tli
~611
3.03
.51
&54
+8.55
+1.~
+.61
+.21
n.a.
+2.40
+10.95
+3.03
+- 51
~54
+3.77
+3.77
+7.81
+9.71
I. 75
4. 28
.16.93
~9. 31
0
3.11
5.•1)3
.1 . .13
.29
n.a.
n.a.
9.30
9.30
5. 6.~
12.92
17. £0
1;2.
+.29
n,a.
+2.53
+12.38
+3.11
+3.77
+3.77
+739
+9.92
+19.77
n.a.
n.a.
.14
.66
16.39
20.90
.05
1.61
4.18
1.61
4. IX
1.01
4· 2.~
1.76
4 89
18.00
£6.1.'l
+.05
+2.57
+2. ,57
+2.62
+-U4
+7.13
3.67
7.14
13.48
7.14
13.4X
7.14
17.16
9.0.'1
U.09
60.1,6
87 ..11i
+3,67
+6.34
+6.34
+10.01
+1.'1. Of!
o
.01
o
o
o
o
o
o
+.01
o
()
.15.181.750
~5.08
3.33
,66
+.66
0
.05
o
0
0
+1,~.84
+2.05
+.71
+.29
n.a.
+3.05
n,a.
0
o
.15
n.a.
.15
o
- - - - ----- - - - - - - - - - - - - - - -.20
o
o
0
+.15
n.8.
+.15
o
(12)
(otlll
(9)+
+ 111i)
1.03
u
0
.05
o
0
.51
&m
+.51
~m
0
0
---------o
+~.51
+.05
n.a.
o
+3.99
+.47
+.05
+.52
+2.78
53.32
0
o
n.a.
o
1.89
17.11
51.~3
1.89
0
.51
70.21
3.16
6.5.27
3.94
.71
.29
4.94
n.a.
25.07
--- --- --- ---------------- --- --+7.96
+(I~)
(1:11
4.15
.14
,61
.08
-.28
n.a..
n.a.
o
.05
o
. ox
1.77
.~. fO
,12
.49
(14)
n.:1.
16.25
Change _______________________ +5. 8M
+17 0 4
0
0
cn'dit
Iinl's
( iraJld
.21
20.24
1953_ ___ __ _______ ______ ______ ___
1963____________________________
+2.31
0
0
tran("IIt's
Tot:lI
"1+11,1
.61
n.78
14.56
BIS:
n.a.
0
(((I.I!,
Total
(,r!'dit
(al'ilillp:-;
3.33
+1.58
34.32
40.20
+16
0
total
91)
~1.
+9.85
1953_ _ __ __ ___ ___ ___ ____ _______ __
1963_ _ _ __ _ __ __ ___ ___ _____ _ __ __ __
9.03
£6.07
+. 61
o
~Ilh
tial
:-;uh~
,0.53
9.30
+5.18
Change _______________________ +1. 21
All Countries:
.W
2. ,07
o
.28
24-64
1.490
0
n.a.
1.49
26.130
.51
.38
18,461.53
U
.05
n.".
1.58
20.042.08
- - - - - - - - - - - - - - - - - - - - - - - - - - - ---- - - -6.09 +2.08
+.51
-6.18
+.04
o
n.u.
+. 09
+.05
+-10
.'15.16
0
0
n,a.
I. 75
o
.0.02
o
3.'1.~1
I.n
Change _______________________ +4.67
Rest of World:
1953____________________________
4,47
5.68
n.a.
23.47
0
0
n.a.
o
I. 37
16.90
1.5X
0
n.a.
. os
1.09
- - - - - - - - - - - ---- - - - - - - - - - o
-.33
0
+.05
n.a.
-.2M
-6.57 +1. 58
1. 37
1.04
,).33
10.51
1963_ _ ____ __ ___ ___ __ ____ __ _____ _
e.c
22.10
.21
16.81
-- ---+.21
-Ii. 29
()
29 S5
34.52
1963_ _ _______ __ _ ____ _____ ____ ___
-
10.64
.16
.61
Other
D!F'
P()tt'n~
total
1~)
TI>., )·;i.:1>1 .
1111)3. _
Oth,'r
credit
lines
(7)
party
(1)
~uh
~'ACILITI~;S
SUBJECT TO NE(;OTrATWS
.\SSURED
OTHER
Total
Uold
1
dollars l''lllivall'nt)
.08
-. £8
1.86
J!..36
---+.60
0
0
0
0
+16.89
+3.16
.08
-.13
0
.01
0
-.06
+.01
0
0
0
0
D.a.
0
1.86
0
0
0
0.8.
0
e.S6
0
0
0
D.O..
0
+.50
---- - - - - - - - - ---- ----
f.u-tUn ..·", IU"" hu'urill'h.lh' Ulld pu.rtly C$lhnn1.(·d.
+. 51
0
o
o
o
7.28
.01
+.01
-.It
-.0",
0
0
o
o
o
()
o
o
0
0
0
0
U
0
0
;1~.~~c1u~::~f,!!Q~~~~~~!~i~~.s suhJ~t
to ,K)lky pcrlorrnaJ'Wo.
o
9(j
.08
.16
0
()
+16
£.~
+.16
0
------
41 40
o
1.88
u
'"0
~.:'6
+.60
ApPENDIX
II-Page 2
TABLE II-OFFICIAL RESERVES AND CREDIT FACILITIES 1
Decembl'r 31, 1959-December 31,1963
[In billions of U.S. dollars equivalent]
CREDIT
RESERVES
GOLD AND FOREIGN
EXCHANGE
FACILITIES
SUBIECT TO NEGuTIA TION
ASSURED
OTHER
Sub·
Special Swaps Mis·
Gold 2
U.S. used by cella·
total
(1)+(2) tranche bonds other
neous
party
Sub·
total
(4) to
(7)
Total
reserves
(3)+(8)
Gold
Foreign
exchange
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
6.20
10.13
17.47
26.57
.86
1. 80
0
0
/8.83
£9.27
+3.93
+9.10
+.94
6.44
10.51
39.73
45.03
2.93
3.33
Swaps IMF
unacti· stand·
bys 3
vated
Other
credit
lines
Sub·
total
(10.11,
12)
Other
IMF'
tranches
Poten·
tial
credit
lines
Sub·
total
(14)
+(15)
(12)
(13)
(14)
(15)
(16)
11.27
16.44
~-
Change ....................... +5.17
Group of Ten and Switzerland:
1959 ............................ 33.29
1963 ............................ 34.52
Change ....................... +1.23
Rest of World:
1959 ............................
4. .59
1963 ............................
5.68
.24
n.a.
n.a,
.86
2.70
+.66
+.24
n.a.
+1.84
'0
+10.94
12.66
14.56
17.25
20.24
.32
.61
.05
0
0
.n.a.
n.a.
.32
.66
17.57
20.90
0
0
0
1.03
3.80
3.74
3.80
3.74
3.80
4.77
4.66
7.47
22.13
34.04
+1.03
0
+1.03
-.06
-.06
+.97
+2.81
+11.91
0
3.62
9.87
9.30
9.87
9.30
9.87
12.92
If. 80
17.20
.£.53
6£.£3
+3.62
-.57
+ •. 40
+9.70
0
3.03
4.18
3.35
4·89
20.60
£5.13
0
.05
0
0
---- --- --- --- --- --- ---- --- ---
+1.90
+2.99
+- 29
19.10
25.07
56.98
65.27
3.25
3.94
+-05
0
n.a.
+-34
I Data for other reserves and credit facilities are incomplete and partly estimated.
, Including super gold tranche.
, Beyond the gold tranche.
0
n.a.
n.a.
3.25
4.94
+3.83
+-05
0
60.£3
.71
.29
3.16
70.21
--- ---- - - - --- --- --- --- .--- ---- --Change ....................... +2.32
+5.97
+8.29
+.69
n.a. +1.69
+-29
+9.98 +3.16
+-71
0
(19)
0
1.03
------
0
0
(18)
(11)
2.93
0
n.a.
0
42.66
4.28
3.11
.51
.66
.29
n.3.
49.31
---- --- --- --- --- --- ---- --- --+4.07
+5.3C
n.a. +1.35
+-40
+-66
+.29
+.51
+6.65 +3.11
--- ----
Change ....................... +1.09
All Countries:
1959 ............................ 37.88
1963 ............................ 40.20
.66
---- ---- --- --- --- --- ---
(17)
Grand
total
(9)+
(17)
(10)
- - - - - - - - - - - - - - - - - --- - - - - - - - - - - - - - - - - - - - - Tbe Eight and Switzerland:
1959 ............................
1963 ............................
Total
Total
(8)+(17)
credit
facilities
(13)+ (16)
.05
-------
0
+.05
+1.15
0
.51
0
3.67
12.90
13.48
+- 51
+3.67
+- 58
---
• Including standbys subject to policy performance.
n.a. Not available.
------- . .57
+3.05
3.03
4.18
3.03
4·£3
~-----
+1.15
+1.20
12.90
17.15
------+4-£5
+-58
12.90
13.48
+1.54
+4·5:5
16.15
££.09
73.13
+5.94
+14- 23
87.36
ApPENDIX
II-Page 1
TABLE I-OFFICIAL RESERVES AND CREDIT FACILITIES
I
Decemher 31. 1953-Dt'cemh('r 31.1963
(In billions o( U.S. dollars equivalent]
CREDIT
RESERVES
GOLD AND FOREIGN
OTHER
EXCIIA)\;GE
Uold
Fon..'ign
exchange
(1)
(2)
~;ight and Switzerland:
1953. __________________________
5.49
5.05
1963. -------- ---------------16.44
10.13
Change .. ___________________ +10.95
+5.08
Group of Ten and Switzerland:
1953
29.85
5.33
1963. :::::: _::::::: :::::::: -:: 34.52
to. 51
Ruh·
total
(1)+(2)
(3)
(5)
(6)
0
0
SUBJECT 1'0 NEGOTIATIO~
ASSURED
Special Swaps
MIs·
Gold 2
U.S. used by cellatranche hands other
neous
party
(4)
FACILITIES
Suhtotal
(4) to
(7)
Total
reserves
(3)+(~)
(7)
(8)
(9)
Swaps 11\1 F
unaetl· stand·
hys 3
vated
(10)
(II)
Other
credit
lines
(12)
Subtotal
Sub·
total
(10.11.
12)
Other
1MI<' •
tranches
Potentlal
credit
lines
+(15)
(13)
(14)
(15)
(16)
04)
Total
Total
(;rand
credit
(kl+(J7)
total
(acilitie,
(13) + (lr.)
(\ 7)
l~)
+-
OJ
1
1191
(lk)
--- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The
Change _____________________ +4.67
+5.18
Rest of World:
19.13. _________________________
4.47
11. 78
1963.
5.68
14.56
------------------------------Change -------------------- +1.21
+2.78
All CountrIes:
1953. _________________________
17.1l
1963. __________________________ 34.32
40.20
25.07
Change _______________________ +5.88
I
2
I
---
+7.96
Jr.54
26.67
+16.03
.26
.66
.24
n.S.
n.8.
.26
2.70
10.80
1. 80
29.27
0
1.03
0
0
+1.54
+.e6
+.24
n.s.
+2.44
+18·47
+1.03
0
1. 75
4.28
36.93
49.31
0
3. II
0
+3.n
- - --- --- - - ---
35.18
45.03
1. 75
3.33
--+9.85 +1. 58
!6. 25
20.24
.14
.61
0
0
.66
.29
n.a.
n.a.
+.66
+29
n.a.
+2.53
+12.38
+3.99
+.47
51.43
65.21
1. 89
3.94
+13.84
+2.05
.51
- - - - - - - - - - - - ----- - - - - - 0
0
n.n.
.05
n.a.
.14
.66
16.39
£0.90
+.05
0
D.a.
+.52
n.3.
0
--- --- --- --- ---
0
0
+4.51
+05
0
0
.29
n.a.
1. 89
4.94
53.32
n.!!1
0
3.16
+71
+.29
n.a.
+3.05
+16.89
+3.16
0
+1.03
+2.26
5..,3
0
3.62
9.30
------+3.C2
+3.77
1. 61
.05
4.1~
+.05
+2.57
.51
0
3.67
7.14
13.48
+.51
+3.67
+6.34
---- --- --- --- --- --- ---- --- ---
Data for other reserves and credit facilities are incomplete and partly estimated.
Including super gold tranche.
Beyond the gold tranche.
1. 48
3.74
0
------
.71
0
+51
.05
0
0
1.03
-------
--------
I. 48
1.411
3.74
4.11
------+2.26
+9.29
1. 14
1.1,7
34· 04
+6.7.1
+21. 76
42·46
1;2.2.'
If. £8
.5 .•13
9.3U
12. ut
1. tl!
17. to
+3.77
+7.39
+9.112
+19.77
\.61
4.18
I.CI
4·2.]
I. 76
4·81>
18.1)(,
26.1.1
+2.07
+2.62
+3.14
+7.1~
7.14
13.48
1./4
17.15
9.03
2t.09
CG·46
81.36
+6.34
+/0.01
+13. 0Ii
+t6.90
6.6.1
----------
- - - ---- ---- ----
- - - ----- - - - - - - -
Including standbys subject to policy performance.
n.a. Not availahle.
I
':'-<.,)
.
'"'
- 22 for adding to the supply of created reserves that serves the internatioruu
monetary system.
The :f'\mdamental decision that will have to be taken, 'When
the time is reached for actual consideration of such possibilities, is
whether the gain -- from following any of these possible lines -- is 'WOrth
the risk.
I have not today tried to face this final question.
I am convinced
that the students and the practitioners of international monetary finance
vill be greatly benefitted by a thorough and extensive international debate
on the pros and cons of proposals of the kind I have so briefly outlined
today.
Whether then to follow any variant of any of these approaches, and
if so, wen, can be best debated after much more progress has been made
in sorting out the issues inherent in the various approaches themselves.
-- 000
- 21 -
quotas of countries whose currencies can be used in Fund drawings.
But there is another way in which gold tranche claims can also be
in~reased.
It would be relatively stmple, Whenever the time seemed
appropriate, to permit countrie,s to pay all or a part of their gold Bub.
scriptions, in connection with a quota increase, through giving the Fund
a callable claim on gold.
Such a Fund claim on callable gold, correspond.
ing to the customary business practice of subscribing capital that is not
fUlly paid in, could be exercised by the Fund in accordance with agreed
voting procedures.
The right of making payment in whole or in part
through gold certificates could be granted to countries according to
agreed criteria of reasonable acceptability.
But before I get carried away with this particular version of the
money-creating process, it is important to note that this, as any other
form of money creation, can be possible only if 1t proceeds under arrangements and policies that will sustain confidence in the bank itself and in
the currency which it issues -- in this case the Monetary Fund and claims
upon it.
There are obvious and dangerous risks that would have to be pro-
vided against in the instituting of any arrangement of this kind.
Agreed
standards of eligibility for making payment in this form, and procedures
for determining the Fund's need for caJ.ling up the gold, could become the
subject of extensive and difficult negotiation.
But, of course, there are
risks of the same type in any effort to introduce a new method, beyond
those methods with which the financial community is already :tUlly familiar,
- 20 -
When other countries in the 'earlier post-war years drew that amount of
dollars on balance from the FUnd.
And up through 1962, as
we
encountered
heavy deficits, we financed a significant part of them through the use of
that $1.3 billion as other countries made repayments to the Fund in dollars
Which might otherwise have remained outstanding as added liquid claims upon
us, or perhaps have been used by receiving central banks to exercise their
rightful claim to purchase gold tram our monetary stocks.
Italy experienced the same usefulness of the super gold tranche when,
as a part of' its balance of' payments financing earlier this year, a substantial part of the amount it drew fram the Fund did not have to be repaid.
For Italy's super gold tranche claim represented merely a taking back, for
its own use, of' resources that had already been put into the Fund when, in
earlier years, other countries made drawings of lire from the Fund.
What may develop, then, over the years as more of the countries with
useable currencies acquire larger quotas in the Fund, is that more of such
countries, more of the time, will hold super gold tranche drawing rights
in the Fund.
These will represent additional highly liquid and fully
transferable primary reserve assets tram the point of view of the originating country.
To those countries which have drawn these currencies from
the FUnd, they will represent foreign exchange holdings acquired on a
borrowed basis, for use in meeting same of the swings in their balance of
payments requirements for which liquid!ty of' same kind had to be obtained.
For this kind of expansion in reserve assets, nothing is needed save additional reliance upon the Fund and a relatively steady increase in the
- 19 Creating Reserves Through Existing Fund Facilities
Whether or not either of the two preceding approaches proved practicable at some stage in the future, it is probably fair to say that any
approach through the Monetary Fund is less likely than an entirely separate
new entity to cause a divisive fragmentation among the monetary authorities
of the various countries of the world.
Action through the Fund is probably
also much more likely to build upon, rather than to supplant, the existing
currency and credit facilities in us.e in the international monetary system
of today.
That is an important consideration pointing toward a third, and
more modest, possibility for introducing an additional element of reserve
asset creation into the system.
For this third possibility would build
entirely on existing arrangements with a minimum of changes and a maximum
of continued reliance for settlement among countries through transactions
in the actual currencies used in foreign exchange trading among the natiorulls
of these countries.
This tbird approach would simply be to make explicit
I
a fuller reliance upon gold tranche rights as an actual part of the owned
reserves of member countries of the Fund.
As I attempted to explain when we were lOOking at the tables, the socalled super gold tranche is already the result of a form of reserve asset
creation -- though we have all become familiar wi th its operation without
many
of us appreciating that reserve assets were actually being created.
The monetary authorities of the United States, to be sure, have realized
for some time that they had acquired $1.3 billion of a "bidden reserve"
- 18 There are, to be sure, serious risks on both sides of this suggestion, that is, both in terms of the deposit or similar borrowing arrangements and in terms of the investment possibilities.
Agreement on criteria,
and the necessity for periodic review and revision of the criteria, might
also become an exercise in futility, leading to a stalemate or contraction
in the supply of actualJ.y available liquid resources.
Moreover, on the
depositing side, great care would be needed to avoid making the deposits
so attractive as to discourage efforts of surplus countries to bring their
tnternational. accounts into balance or to deter member countries from
accepting actual. quota increases of an appropriate amount, such as the
occasion of the regularly schedule quinquennial. Fund quota reviews.
On
the investment Side, questions would certainly be raised as to the liquidity
of the Fund itself, if it added potential. short-term obligations, available
virtually on call, 'While acquiring what might prove to be relatively illiquid investments of longer-term.
M:>reover, such investments are likely
to involve a greater loss potential, and there would have to be an adequate
provision for this problem, if its new ventures were not to undermine the
prestige it has thus far attained as the responsible and reliable center
of the world's monetary system.
These are only a few of the risks.
I have not even begun to mention
the difficulties that would be encountered in establishing criteria.
None-
theless, I would no more Wish to imply that these approaches should be
dismissed than I would Wish to suggest that the eRU no longer deserves
careful attention and examination.
- 17 Deposits and Investments Through the International Monetary Fund
One possible way around same of the difficulties just mentioned WOUld
be to establish a much looser arrangement, through which individual strong
countries whose currencies are used by the Fund -- sUbject to general conditions agreed upon by all members of the International Monetary FUnd -could help further to satisfY the liquidity requirements of the internatioruU
community.
This might be for particular countries to make voluntary deposits
of their own currency with the Fund (or al ternatively, the :FUnd itself might
borrow fram such countries in their own currencies).
Such deposits would
be above the amounts of their currency required -for their own quotas.
The
country could be given drawing rights comparable to those of the super gold
tranche as "compensation" for the deposit.
rzC~ ~
:'
-I 1
(~(.
.
..
.:
(' j,y
~,,,. 4_,-vC1(_~.
The additional resources thus obtained might, of course, be held by
the Fund for use in meeting regular drawing requests.
If this method should
not prove sufficient to assure adequate liquidity for the rest of the world,
at least in the form of
~ed
reserves, the Fund might use these deposits
of currencies, according to some agreed criteria, for making investments.
The investments might flow to the assistance of many of the less developed
countries if the Fund were to purchase obligations, say, of the lBRD, which
might perhaps in turn make some of its resources available to the International Development Association.
Or another poSSibility, subject to a
greater degree both of credit risk and of difficulty in allocation among
countries, would be for the FUnd to invest directly in the securities of
certain countries -- possibly countries with well-established securities
markets.
- 16 The countries that see'a need for global constriction of reserves
should be able to exert a clear influence upon the result, but one may
question whether they individually or as a group should be able to exercise
a full veto upon the views and needs of the countries which see scope for
expansion.
There might instead be a serious risk that countries in balance
of payments surplus should, when their surpluses have continued long or
become large, rely mainly upon their power to limit the 'WOrld I s money
supply in order to try to achieve balance, rather than fully re-examining
their potential for additional imports, for example, or for making capital
exports.
In such circumstances, any other advancing countries might suffer'
severe constraint or hardship, perhaps unnecessarily.
There is, therefore,
inherent in reliance upon a single defini ti ve scheme, such as the CRU, the
risk of placing too much dependence for the future upon precise control
over the international money. supply -- a risk that most countries have
long since learned to avoid in handling their own domestic affairs.
At
home, most countries instead attempt now to influence the entire spectrum
of internal liquidity, and rely in fact upon the self-enforcing restraints
of the credit-granting process.
I mention these risks frankly, and argumentatively, because that is
the wa:y to full and fruitful examination.
I do not Wish to imply that I,
or anyone in the United states Government, considers the case for the CRU
closed.
I do think the necessary evaluation would be less than complete
if questions of this kind could not be resolved before any future step
toward a CRU were seriously considered.
- 15 circumstances would have to make net payments to any of the other countries,
in this ratio, not only as a result of the direct bal.ance of payments
relations between the United states and that country, but also reflecting
the net use of dollars by all other countries in the world, as they employed
their dollar holdings to settle balances which they owed to any of the other
members of the group.
A third requirement, implied by 'What I have already said, is that the
actual. use of the CRU's would be necessarily limited to members of the participating group.
There would thus be no assurance that the aggregate of
liquidity available to all other countries would remain adequate, merely
because certain large countries at the center of the system were assuring
an adequate volume of reserves for themselVes.
Nor could it be certain,
given the apparent dependence upon a unanimity rule, that even the supply
of CRU's would be increased adequately over time.
In effect, the present system which operates through a series of checks
and balances, as countries acquire more of a particular kind or: reserve
asset than they might wish to hold, would be replaced by one clearly dependent upon a specified voting arrangement.
There would be both the logiC
and the rigidity of clear-cut, voted decisions.
One serious question is
Whether a monetary system, dependent both upon usage and upon confidence,
and serving variable needs which have always in the past required the
element of flexiblli ty inherent in the relationship between money creation
and credit extension, can be reduced entirely to a voting system __ even
if one could be devised without a unanimity requirement.
- 14 /
of the decision-making process would very likely have to depend upon a
unanimous vote of the participating countries.
There would, for example,
probably have to be unanimous agreement on the total amount of CRU's to
be created and. upon the shares that each country would have in the initial.
total of created assets.
Similar agreement as to total and shares would
appear to be needed whenever any subsequent increases might occur.
A second requirement that has been considered essential by many proponents is that, once issued, the holdings of the composite reserve unit
should have a fixed relationship to the gold holdings of each of the
participants.
To be sure, a transition period would be contemplated,
pending same further substantial redistribution of gold holdings among
the participating countries.
But fram the very beginning, the transfers
related to net current settlements among the participants would be made,
so it is proposed, by payment or receipt of CRU's and gold in a fixed
ratio.
The ratio would be determined by the proportion which the total
gold holdings of all partiCipating countries would bear to the total of
CRU's in existence.
If the CRU were to have been created at the end of 1963, for example,
by the Group of Ten countries plus· Switzerland, their combined gold holdings, as shown in column 1 of table 1, were approaching $35 billion.
If
the group decided to begin by creating $1 billion equivalent of CRUls,
then all net settlements among members of the group would proceed on the
basis of $35 of gold and $1 of CRU claims.
The United states in these
- 13 it would give up some of its own currency and receive, instead of a
specific claim on another currency, a generalized claim on all currencies
being deposited in the pool.
Each of the countries participating in the pool would then presumably
undertake, when in surplus, to accept such claims in settlement of its
net balance of payments gains vis-a-vis the other participating countries,
or to payout such claims when in deficit.
The actual procedures for
settlement, and the equally important procedures f'or determining the amount
of' such pooled claims to be created, could, according to the proponents ot
this approach, be resolved in variOUS ways.
But when one attempts to begin
to transcribe this appealingly simple concept into specific procedures,
several serious problems begin to appear.
First, of course, there is the necessity of deciding which countries
may be included in a select group of' this kind.
That also means determin-
ing, and agreeing upon, the criteria 'Which would permit the addition of
other countries, or require the exclusion of' some, at a later time.
Per-
haps even more troublesome, doubts begin to arise concerning each other's
internal poliCies, if' countries are to be mutually dependent upon each
other f'or the creation of an important part of their own primary reserves.
Some may see a mutual interest in determining the relationship that should
prevail between each country's holdings of reserves in the common pool and
its own creation of internal credit.
solved without an
~ent
Perhaps such questions can be re-
of sovereignty that would exceed realistic
possibilities, but, even then, it seems already agreed, some aspects of
- 12 -
the European Payments Union that evolved under the Marshall Plan.
A
second approach would rely instead upon the International Monetary Fund,
permi tting strong currency countries to deposit some amount ot their cur-
rencies with the Fund, while the Fund in turn would put these into active
circulation by making investments for its own account, for example, through
purchasing bonds of the International Bank.
A third approach, also cen-
tered upon the IMF, would give more explicit recognition as international
reserve assets to the gold tranche and super gold tranche claims to which
I have already referred in describing the tables.
Perhaps noy we can glance somewhat more closely at each of the
three approaches, recognizing that there are many variants of each and
that adequate examination will require months and years, rather than a
few minutes.
Composite or Collective Reserve Unit
The proponents of this approach regard it as a convenient form for,
in effect, multilateralizing and making permanent some part of the money
creation potential that is inherent in swap arrangements.
Working through
the BIS as a central clearing house, partiCipating countries could deposit
agreed amounts of their own currencies in a cammon pool and receive initially an equal amount of claims on the common pool.
Or, conceivably,
countries could deposit some part of their own existing holdings ot gold
with the BIS and receive claims on the resulting pool.
In eff'ect, each
would be making entries on the books of' its own monetary authority quite
similar to those it makes in the case of'
any'
activated 8'WB.p.
In this case,
- 11 -
IV.
The creation of a new reserve asset depends ultimately upon the
readiness of the monetary authorities of various countries to accept a
claim of some sort upon other countries as a suitable addition to their
own reserves.
Much of the reserve asset creation thus far has rested upon
the readiness of all, or at any rate most, countries to accept direct
claims upon'the reserve currency countries.
Part, too, as
we
have seen
in reviewing the tables, has arisen from the readiness of Fund members
to accept claims upon the Fund.
There are not at present any other individual countries Who are will.
ing to accept the obligations and the exposure implied by serving alone
as a reserve currency country.
Nor is there any lim! ted group of countries
now prepared to act together to function in a manner comparable to the
role fulfilled by the present reserve currencies.
This means, so long as
these national attitudes continue, that any different form of reserve
asset creation in the future will probably have to occur through some
kind of an international institution.
There are broadly three ways in Which this further evolution, if it
is to come about, might occur..
One would be for a group of the leading
industrialized countries to join together to form a collective or composite
reserve unit.
Various approaches of this kind have been suggested during
the course of the Group of Ten discussions, most of them looking to the
Bank for International Settlements to serve as the international institutiOl
at the center, in a manner somevhat comparable to the rol.e it performed tor
- 10 -
International Monetary Fund, although still subject to some negotiation
if and when need might arise, accounted for about two-thirds of the increase in credit facilities.
It is against the background of this pattern of evolution in the
development both of reserves and of credi t facilities aver the past decade
that we must orient our thinking in looking ahead toward the next decade
and beyond.
The decisions taken in Tokyo give assurance that another
major advance in the supply of credit facilities will be formally approved
sometime next year, as increases aggregating $4 to $5 billion are established in the quotas of member countries in the Fund.
..
Alongside this
,
development, the arrangements agreed bupon by the Group of Ten, as
summarized in the Ministerial Statement, assure the further elaboration
and use of bilateral credit facilities.
These, joined with whatever
modest further gains may occur in holdings of gold, or of foreign exchange,
assure a reasonable adequacy in the global supply of liquidity, and in
. the access to liquidity, over the next few years.
What the Fund and various governments will be studying, however, and
what we want to encourage in the finanCial, business, and academic communi ties, . is consideration of the methods that might be appropriate, if
we reach a stage in which purposive further additions are to be made in
owned reserves -- additions that 'WOUld be reflected in column 9 of our
various tables, whether or not they were specifically identified with the
items embraced in any of the preceding columns as we now know them..
- 9 liquidity during the decade from 1953 to 1963 was provided by net increases
in the monetary holdings of gold -- although, as I have already mentioned,
a significant redistribution of those holdings did also occur.
A substan_
tially larger part of total reserves, and of liquidity, came from added
holdings of foreign exchange -- which over this decade consisted almost
entirely of dollars.
But gold and foreign exchange together (column 3)
still only accounted for but slightly more than one-half of the total
growth in liquidity sho'WIl in column 19.
Actually, the other forms of
additions to reserves, mainly reflecting the fact that IMF quotas were increased about midway in this decade, provided more than $3 billion of the
total change in reserves, representing roughly half as much as the growth
of gold itself as a component of total reserves.
Some $10 billion, or a little more than one-third of the total growth
in liquidity, came, however, from credit facilities that were superimposed
upon the supply of actual reserves.
These credit facilities divide
logic~
into two kinds, those Which have been fully negotiated and are available,
at least for short-term use, virtually on call, and the others which would
be available only on the basis of some further negotiation, although all
necessary legal authorization on the part of any countries concerned
have been completed.
~d
On a rough basis, assured arrangements, mainly in the
form of agreed swaps that were not actually
~n
use at the end of 1963,
accounted for about one-third of the increase in liquidity brought about
through credit faclli ties, and credits potentially available through the
- 8 in case of need be virtually transferred to, say, the German Bundesbank,
being re-issued in that event in German marks.
Transfers of exactly this
kind occurred last Spring, when the Italian authorities were able to use
these assets, acquired in an earlier period of Italian surplus, to help
finance a deficit in their accounts that was running strongly in the direction of Germany.
A someldlat similar effect is obtained through the reserves noted in
column
6. For When the United States draws on a swap line, previously
arranged with Switzerland, for example, the Swiss National Bank obtains
a corresponding claim on our own Federal Reserve.
At the least, the Swiss
National Bank can be certain that it 'Will come into addi tiona! funds when
the United States pays off the swap on maturity and, for that reason, could
carry its claim for :fUture reversal of the swap as a sort of reserve asset.
But the useability of the claim is even greater than that..
If for any
reason Switzerland should want to use same part of these dollar swap
claims, it can draw at 'Will, though of course after mutual consultation,
against the balances set up to its credit at the moment the Federal Reserve
initially activated its own drawing of Swiss francs under the swap arrangement.
This quick attempt to summarize the concepts lying behind these columns
of figures may be more confusing than clarif'ying, but the essential point
comes out if you glance with me at the bottom row in Table 1.
What this
shows is that little more than one-fifth of the total growth in world
- 1 The gold tranche consists, of course, not only of the drawing rights
acquired by countries when they pay gold into the Fund as a part of their
quota subscriptions, but it also includes those drawing rights acquired
by a country when its own currency has been made available by the FUnd to
some other country in need of credit.
This latter type of asset, known
colloquially as the "super gold tranche," is useable, like the gold tranche
itself, virtually on demand by the country whose currency has previously
been paid out by the Fund.
Moreover, unlike a drawing in the regular gold
tranche, such a drawing in the super gold tranche need not be repaid.
What
this means is that whenever German marks or Dutch guilders or French francs,
for example, are drawn by some country from the Fund -- and the drawing is
not offset through repayment of the same currencies by some other country
discharging an earlier debt to the Fund -- then Germany or the Netherlands
or France has, in effect, added to its own reserves.
It has acquired a super
gold tranche equal to the net amount of its own currency drawn from the Fund.
It is not only through the Monetary Fund, however" that our existing
arrangements for credit facilities are already capable of providing
countries with a useable reserve asset.
For the bilateral facilities
developed more recently may create similar kinds of claims.
Column 5
refers to special bonds that the United States, as a reserve currency
country, has sold to ready buyers among the monetary authorities abroad.
These bonds, while initially denominated in Italian lire, for example, and
purchased by the Italian monetary authorities from the United States, can
- 6Ministerial Statement.
Tables 1 and 2 are condensed summaries, the first
showing over-all changes in international liquidity for the decade which
ended at the close of 1963; the second shows the changes over the four
years ending on the same date -- the period when most of the bilateral.
credit facilities were introduced.
Tables 3 and 4 cover the same two spans
of time, but show much more detailed breakdowns among groupings of countries.
While I would like to commend these tabulations to much wider attention and
deeper study than any of us have yet been able to give them, I can today
only highlight the analysis that these data suggest by referring to the
column headings which are, of course, the same across the top of each of
the four tables.
As you see, the liquidity available in the world today is fairly
easily divided between reserves, which are owned outright and are readily
useable by the holder, and .. credit facilities," which in effect provide
ways for same countries to lend existing reserves to other countries,
directly or through an international institution, in order to meet particular needs for monetary reserves.
The reserves themselves, as shown by the
column headings, include not only the traditional forms of holdings in gold
and foreign exchange with which most of us have long been familiar, but
they also include other forms that are becoming increasingly important.
Some
countries, for example, already consider their so-called gold tranche clabU
on the Fund (column 4) as a part of their foreign exchange reserves.
How-
ever treated statistically, these drawing rights are clearly close alternat1'"
to gold or outright hold.1ngs of foreign exchange.
- 5 Not because the need for added creation of reserve assets is actuallr
upon us, but because any deliberate innovation in the monetary field must
be carefu.l.ly studied well in advance, both the International. Monetary Fund
and the associated "Group of Ten" (that is, ten of the leading industrialized
countries with the participation of Sw1 tzerland) are looking more closel7
at this question.
Pushing beyond their studies of the past year, which
appraised the present functioning of the international. monetary system,
they intend now to analyze the potentialities for the actual creation of
additional owned reserves, whenever such need may arise in the future.
If
anything ever comes of all this, it w1ll be the closest approach to successful alchemy that the world has yet attempted.
The implication of any
decisively new arrangements could be far-reaching for the 1\mctioning of
every money-using economy, but particularly for the Free World.
why
That is
this is no matter for swift, or preCipitate, or sentimentalized decision.
It requires long and careful study, to be follOWed by extensive and extended
negotiation.
No one need apologize for taking time for appraisal where
the money that men believe in, and rely upon, is involved.
III.
It is not only useful in evaluating what we now have, but also in
sorting out some of the possible lines on which actual reserve creation
might proceed in the future, to step aside for a moment to look at the
tables to which I have Just referred.
The tables begin on page 17 of the
- 4 still another phase has been reached in this monetary evolution.
Spurred
by the existence of large and continuing deficits in the United States
balance of payments, but by no means necessarily related to the existence
or continuance of such deficits, an impressive new array of bilateral
facilities has also been developed.
c~t
Through these credit facilities,
countries whose currencies have reached a stage of world-wide useability
have joined with the United States, in effect, to make still more intensive
use of the existing supplies of international. monetary reserves.
They have,
if I may make a loose analogy to the nomenclature of Irving Fisher's old
equation, added to the M' and the V' of the world's monetary system.
In a moment, I want to turn With you to the statistical tables included
in the Ministerial Statement that has been distributed to each of you, in
order to note more systematically the way in which this array of gold,
reserve currencies, multilateral credit facilities, and bilateral credit
facilities has now developed.
But all of that will only serve as an
introduction for the special attention I would like to draw, today, toward
what may become a still further stage in the evolution of the international
monetary system -- that in which, supplementing all we now have, there may
by international agreement be further arrangements introduced for creating
additional. primary reservese
This would mean the introduction of some
additional for.m of internationally acceptable reserve asset which countries
could hold alongside the gold, or the dollars, or other foreign exchange orO'tZM
claims which now meet the "owned reserve" part ot global. liquid!ty requirements.
- 3general control over their own price developments in the quest for
monetary stability.
II.
Needed expansion in the liquidity that has been available for the
world at large, since World War II, has come in three ways.
(1)
Gold
supplies have themselves increased, but even more importantly, gold
holdings have been massively redistributed from the United States to
other countries.
(2)
Dollars, and to some extent sterling, and for some
areas the French franc, have provided reserves that many countries could
hold alongside gold, or as a substitute for gold, in their central monetary
institutions -- reserves which both supported the necessary internal
expansion of money and credit and also provided the means of payment for
settling the net balance of accounts between each country and the world
outside.
(3) As a further supplement to gold and reserve currencies,
the International Monetary Fund since World War II has been providing a
form of multilateral credit facility, through which additional. use could
be made of the existing supplies of gold, or reserve currencies, or even
of other convertible currencies as these gained in strength and acceptability.
Viewed against the pace of monetary advance over the past century,
the range and f'lexibili ty of the add1 tional liquidity made available since
World War II has been remarkable.
But Within the past four or five years
- 2 -
the reports published in August by the International Monetary Fund and
by the Group of Ten, but also virtually every address or comment at the
meetings, reflected an awareness, not of'ten explicit, of something else -essential to the Whole -- which most of us now consider as certain and
secure as the fifteenth stone of the garden at the Ryoanji shrine.
It
went without saying at Tokyo that the price of gold, having been fixed
for three decades at $35 per ounce, is now taken as the cornerstone of
the international monetary system.
The world has long Since, to be sure, lef't behind the simplicity and
the rigidity of the older "pure" gold standard.
But men everywhere con-
tinue to acknowledge, or to sense, the need for" a fixed reference point
to Which all other currencies and measures of value can be related.
After a succession of disastrous experiences related to changes in the
gold price itself, the world has since 1934 come to accept the limiting
constraint of a fixed price of gold, while building upon that base an
expanding structure of money and credit to support the almost incredible
growth that the world has since experienced, both in physical production
and in population.
While the process of economiZing on the use of gold has certainly
also involved some slippage, as many world prices have moved upward, the
readiness and ability of the United States to maintain the convertibility
of its dollar for gold at the fixed maximum price has remained as a firm
anchor, to which one currency af'ter another bas been tied (through convertibllity with the dollar) as countries bave sought to exert meaningf'Ul and
TREASURY DEPARDIENT
Washington
FOR SIMULTANIDUS RELEASE
IN NEW YORK AND WASHINGTON
AT 12: 30 P.M., Em
'WEDNESDAY, OCTOBER 14, 1964
REMARKS BY THE HONORABLE ROBERT V. ROOSA
UNDER S~RErARY OF mE TREASURY FOR MOtreI'ARY AFFAIRS
AT THE CONFERENCE ON "INTERNATIONAL FINANCING -- 1964"
OF THE NATIONAL INWSTRIAL CONFERENCE BOARD, INC.
THE WALOORF-ASTORIA, NEW YORK, NEW YORK
WEDNESDAY, OCTOBER 14, 1964, 12: 30 P.M. (ElJr)
THE FU'1URE OF 'mE INTERNATIONAL MONErARY SYSTDI
I.
Following the recent Annual Meetings of the Bank and Fund in Japan,
some of my colleagues were able to visit Kyoto, the ancient capital. of our
host country, for a little longer than I.
They came back particularly
fascinated with a rock garden they had seen there, created more than 450
years ago by an artist who fused aesthetic experience with a striking
reflection of the philosophy of his Zen-Buddhist religion.
For he created
a garden consisting solely of fifteen rocks, of widely varying shape,
located in a rectangular bed of fine stones.
He so placed the fifteen
rocks that the viewer can never see more than fourteen of them, no matter
from 'What angle he approaches the garden.
Anyone viewing the garden, I am
told, always has a sense or awareness of something more than meets the eye.
Without that arti stry, many of us have had a similar experience in
the course of the past year I s study of the international. monetary system,
on which the Tokyo meetings were so largely concentrated.
~,.
)
For not only
TREASURY DEPARTMENT
Washington
FOR SIMULTANEOUS RELEASE IN
NEW YORK AND WASHINGTON
AT 12:30 P.M., EDT
WEDNESDAY, OCTOBER 14, 1964
REMARKS BY THE HONORABLE ROBERT V. ROOSA
UNDER SECRETARY OF THE TREASURY FOR MONETARY AFFAIRS
AT THE CONFERENCE ON "INTERNATIONAL FINANCING -- 1964"
OF THE NATIONAL INDUSTRIAL CONFERENCE BOARD, INC.
THE WALDORF-ASTORIA, NEW YORK, NEW YORK
WEDNESDAY, OCTOBER 14, 1964, 12:30 P.M. (EDT)
THE FUTURE OF THE INTERNATIONAL MONETARY SYSTEM
I.
Following the recent Annual Meetings of the Bank and Fund in
Japan, some of my colleagues were able to visit Kyoto, the ancient
capital of our host country, for a little longer than I. They came
back particularly fascinated with a rock garden they had seen there,
created more than 450 years ago by an artist who fused aesthetic
experience with a striking reflection of the philosophy of his
Zen-Buddhist religion. For he created a garden consisting solely of
fifteen rocks, of widely varying shape, located in a rectangular bed
of fine stones. He so placed the fifteen rocks that the viewer can
never see more than fourteen of them, no matter from what angle he
approaches the garden. Anyone viewing the garden, I am told,
always has a sense or awareness of something more than meets the eye.
Without that artistry, many of us have had a similar experience
in the course of the past year's study of the international monetary
system, on which the Tokyo meetings were so largely concentrated. For
not only the reports published in August by the International
Monetary Fund and by the Group of Ten, but also virtually every
address or comment at the meetings, reflected an awareness, not often
explicit, of something else -- essential to the whole -- which most
of us now consider as certain and secure as the fifteenth stone of
the garden at the Ryoanji shrine. It went without saying at Tokyo
that the price of gold., having been fixed for three decades at
$35 per ounce, is now taken as the cornerstone of the international
monetary system.
D-1365
- 2 -
The world has long since, to be sure, left behind the simplicity
md the rigidity of the older "pure" gold standard. But men everyJhere continue to acknowledge, or to sense, the need for a fixed
~eference point to which all other currencies and measures of value
~an be related.
After a succession of disastrous experiences
~elated to changes in the gold price itself, the world has since
1934 come to accept the limiting constraint of a fixed price of gold,
vhile building upon that base an expanding structure of money and
~redit to support the almost incredible growth that the world has
,ince experienced, both in physical production and in population.
While the process of economizing on the use of gold has
~ertainly also involved some slippage, as many world prices have
noved upward, the readiness and ability of the United States to
naintain the convertibility of its dollar for gold at the fixed
naximum price has remained as a firm anchor, to which one currency
lfter another has been tied (through convertibility with the dollar)
lS countries have sought to exert meaningful and general control over
their own price developments in the quest for monetary stability.
II.
Needed expansion in the liquidity that has been available for the
vorld at large, since World II, has come in three ways. (1) Gold
3upplies have themselves increased, but even more importantly, gold
10ldings have been massively redistributed from the United States to
)ther countries. (2) Dollars, and to some extent sterling, and for
30me areas the French franc, have provided reserves that many
~ountries could hold alongside gold, or as a substitute for gold,
in their central monetary institutions -- reserves which both
3upported the necessary internal expansion of money and credit and
llso provided the means of payment for settling the net balance of
lccounts between each country and the world outside. (3) As a
further supplement to gold and reserve currencies, the International
10netary Fund since World War II has been providing a form of
nultilateral credit facility, through which additional use could
)e made of the existing supplies of gold, or reserve currencies, or
~ven of other convertible currencies as these gained in strength
~nd acceptability.
- 3 Viewed against the pace of monetary advance over the past century,
the range and flexibility of the additional liquidity made available
since World War II has been remarkable.
But within the past four or
five years still another phase has been reached in this monetary
evolution.
Spurred by the existence of large and continuing deficits
in the United States balance of payments, but by no means necessarily
related to the existence or continuance of such deficits, an
impressive new array of bilateral credit facilities has also been
developed. Through these credit facilities, countries whose
currencies have reached a stage of world-wide useability have joined
with the United States, in effect, to make still more intensive use
of the existing supplies of international monetary reserves. They
have, if I may make a loose analogy to the nomenclature of Irving
Fisher's old equation, added to the M' and the V' of the world's
monetary system.
In a moment, I want to turn with you to the statistical tables
included in the Ministerial Statement that has been distributed to
each of you, in order to note more systematically the way in which
this array of gold, reserve currencies, multilateral credit
facilities, and bilateral credit facilities has now developed.
But
all of that will only serve as an introduction for the special
attention I would like to draw, today, toward what may become a
still further stage in the evolution of the international monetary
system -- that in which, supplementing all we now have, there may
by international agreement be further arrangements introduced for
creating additional primary reserves. This would mean the
introduction of some additional form of internationally acceptable
reserve asset which countries could hold alongside the gold, or the
dollars, or other foreign exchange or other claims which now meet
the "owned reserve" part of global liquidity requirements.
Not because the need for added creation of reserve assets is
actually upon us, but because any deliberate innovation in the
monetary field must be carefully studied well in advance, both the
International Monetary Fund and the associated "Group of Ten"
(that is, ten of the leading industrialized countries with the
participation of Switzerland) are looking more closely at this
question. Pushing beyond their studies of the past year, which
appraised the present functioning of the international monetary
system, they intend now to analyze the potentialities for the
actual creation of additional owned reserves, whenever such need
may arise in the future.
If anything ever comes of all this, it
will be the closest approach to successful alchemy that the world has
yet attempted. The implication of any decisively new arrangements
could be far-reaching for the functioning of every money-using
- 4 economy, but particularly for the Free World. That is why this is
no matter for swift, or precipitate, or sentimentalized decision.
It requires long and careful study, to be followed by extensive and
extended negotiation. No one need apologize for taking time for
appraisal where the money that men believe in, and rely upon, is
involved.
III.
It is not only useful in evaluating what we now have, but also
in sorting out some of the possible lines on which actual reserve
creation might proceed in the future, to step aside for a moment to
look at the tables to which I have just referred. The tables begin
on page 17 of the Ministerial Statement. Tables 1 and 2 are
condensed summaries, the first showing over-all changes in
international liquidity for the decade which ended at the close of
1963; the second shows the changes over the four years ending on the
same date -- the period when most of the bilateral credit facilities
were introduced. Tables 3 and 4 cover the same two spans of time,
but show much more detailed breakdowns among groupings of countries.
While I would like to commend these tabulations to much wider
attention and deeper study than any of us have yet been able to give
them, I can today only highlight the analysis that these data suggest
by referring to the column headings which are, of course, the same
across the top of each of the four tables.
As you see, the liqudiity available in the world today is fairly
easily divided between reserves, which are owned outright and are
readily useable by the holder, and "credit facilities ," which in
effect provide ways for some countries to lend existing reserves to
other countries, directly or through an international institution,
in order to meet particular needs for monetary reserves. The
reserves themselves, as shown by the column headings, include not
only the traditional forms of holdings in gold and foreign exchange
with which most of us have long been familiar, but they also include
other forms that are becoming increasingly important. Some countries,
for example, already consider their so-called gold tranche claims
on the Fund (column 4) as a part of their foreign exchange reserves.
However treated statistically, these drawing rights are clearly close
alternatives to gold or outright holdings of foreign exchange.
- 5 -
The gold tranche consists, of course, not only of the drawing
rights acquired by countries when they pay gold into the Fund as a
part of their quota subscriptions, but it also includes those drawing
rights acquired by a country when its own currency has been made
available by the Fund to some other country in need of credit. This
latter type of asset, known colloquially as the "super gold tranche,"
is useable, like the gold tranche itself, virtually on demand by the
country whose currency has previously been paid out by the Fund.
Moreover, unlike a drawing in the regular gold tranche, such a
drawing in the super gold tranche need not be repaid. What this
means is that whenever German marks or Dutch guilders or French
francs, for example, are drawn by some country from the Fund -- and
the drawing is not offset through repayment of the same currencies
by some other country discharging an earlier debt to the Fund -then Germany or the Netherlands or France has, in effect, added to
its own reserves. It has acquired a super gold tranche equal to the
net amount of its own currency drawn from the Fund.
It is not only through the Monetary Fund, however, that our
existing arrangements for credit facilities are already capable of
providing countries with a useable reserve asset. For the bilateral
facilities developed more recently may create similar kinds of claims.
Column 5 refers to special bonds that the United States, as a reserve
currency country, has sold to ready buyers among the monetary
authorities abroad. These bonds, while initially denominated in
Italian lire, for example, and purchased by the Italian monetary
authorities from the United States, can in case of need be virtually
transferre.d to, say, the German Bundesbank, being re-issued in that
event in German marks. Transfers of exactly this kind occurred
last Spring, when the Italian authorities were able to use these
assets, acquired in an earlier period of Italian surplus, to help
finance a deficit in their accounts that was running strongly in
the direction of Germany.
A somewhat similar effect is obtained through the reserves noted
in column 6. For when the United States draws on a swap line,
previously arranged with Switzerland, for example, the Swiss
National Bank obtains a corresponding claim on our own Federal
Reserve. At the least, the Swiss National Bank can be certain that
it will come into additional funds when the United States pays off
the swap on maturity and, for that reason, could carry its claim for
future reversal of the swap as a sort of reserve asset. But the
useability of the claim is even greater than that. If for any
reason Switzerland should want to use some part of these dollar swap
claims, it can draw at will, though of course after mutual consultation,
against the balances set up to its credit at the moment the Federal
- 6 Reserve initially activated its own drawing of Swiss francs under the
swap arrangement.
This quick attempt to summarize the concepts lying behind these
columns of figures may be more confusing than clarifying, but the
essential point comes out if you glance with me at the bottom row in
Table 1. What this shows is that little more than one-fifth of the
total growth in world liquidity during the decade from 1953 to 1963 was
provided by net increases in the monetary holdings of gold -although, as I have already mentioned, a significant redistribution
of those holdings did also occur. A substantially larger part of
total reserves, and of liquidity, came from added holdings of foreign
exchange -- which over this decade consisted almost entirely of
dollars. But gold and foreign exchange together (column 3) still
only accounted for but slightly more than one-half of the total
growth in liquidity shown in column 19. Actually, the other forms
of additions to reserves, mainly reflecting the fact that IMF quotas
were increased about midway in this decade, provided more than $3
billion of the total change in reserves, representing roughly half
as much ~ the growth of gold itself as a component of total reserves.
Some $10 billion, or a little more than one-third of the total
growth in liquidity, came however, from credit facilities that were
superimposed upon the supply of actual reserves. These credit
facilities divide logically into two kinds, those which have been
fully negotiated and are available, at least for short-term use,
virtually on call, and the others which would be available only on
the basis of some further negotiation, although all necessary legal
authorization on the part of any countries concerned would have been
completed. On a rough basis, assured arrangements, mainly in the
form of agreed swaps that were not actually in use at the end of
1963, accounted for about one-third of the increase in liquidity
brought about through credit facilities, and credits potentially
available through the International Monetary Fund, although still
subject to some negotiation if and when need might arise, accounted
for about two-thirds of the increase in credit facilities.
It is against the background of this pattern of evolution in the
development both of reserves and of credit facilities over the past
decade that we must orient our thinking in looking ahead toward the
next decade and beyond. The decisions taken in Tokyo give assurance
that another major advance in the supply of :redit facilities ~ill
be formally approved sometime next year, as lncreases aggregatlng
- 7 $4 to $5 billion are established in the quotas of member countries
in the Fund. Alongside this development, the arrangements agreed
upon by the Group of Ten, as summarized in the Ministerial
Statement, assure the further elaboration and use of bilateral credit
facilities. These, joined with whatever modest further gains may
occur in holdings of gold, or of foreign exchange, assure a
reasonable adequacy in the global supply of liquidity, and in the
access to liquidity,over the next few years.
What the Fund and various governments will be studying, however,
and what we want to encourage in the financial, business, and
academic communities, is consideration of ohe methods that might be
appropriate, if we reach a stage in which purposive further
additions are to be made in owned reserves -- additions that would be
reflected in column 9 of our various tables, whether or not they
were specifically identified with the items embraced in any of the
preceding columns as we now know them.
IV.
The creation of a new reserve asset depends utlimately upon the
readiness of the monetary authorities of various countries to accept
a claim of some sort upon other countries as a suitable addition to
their own reserves. Much of the reserve asset creation thus far has
rested upon the readiness of all, or at any rate most, countries
to accept direct claims upon the reserve currency countries. Part,
too, as we have seen in reviewing the tables, has arisen from the
readiness of Fund members to accept claims upon the Fund.
There are not at present any other individual countries who
are willing to accept the obligations and the exposure implied by
serving alone as a reserve currency country. Nor is there any
limited group of countries now prepared to act together to function
in a manner comparable to the role fulfilled by the present reserve
currencies. This means, so long as these national attitudes
continue, that any different form of reserve asset creation in the
future will probably have to occur through some kind of an
international institution.
There are broadly three ways in which this further evolution, if
it is to come about, might occur. One would be for a group of the
leading industrialized countries to join together to form a
collective or composite reserve unit. Various approaches of this
- 8 -
kind have been suggested during the course of the Group of Ten
discussions, most of them looking to the Bank for International
Settlements to serve as the international institution at the center,
in a manner somewhat comparable to the role it performed for the
European Payments Union that evolved under the Marshall Plan. A
second approach would rely instead upon the International Monetary
Fund, permitting strong currency countries to deposit some amount
of their currencies with the Fund, while the Fund in turn would
put these into active circulation by making investments for its
own account, for example, through purchasing bonds of the
International Bank. A third approach, also centered upon the IMF,
would give more explicit recognition as international reserve
assets to the gold tranche and super gold tranche claims to which
I have already referred in describing the tables.
Perhaps now we can glance somewhat more closely at each of the
three approaches, recognizing that there are many variants of each
and that adequate examination will require months and years, rather
than a few minutes.
Composite or Collective Reserve Unit
The proponents of this approach regard it as a convenient form
for, in effect, multilateralizing and making permanent some part
of the money creation potential that is inherent in swap arrangements.
Working through the BIS as a central clearing house, participating
countries could deposit agreed amounts of their own currencies in
a common pool and receive initially an equal amount of claims on
the common pool. Or, conceivably, countries could deposit some
part of their own existing holdings of gold with the BIS and
receive claims on the resulting pool. In effect, each would be
making entries on the books of its own monetary authority quite
similar to those it makes in the case of any activated swap. In
this case, it would give up some of its own currency and receive,
instead 6f a specific claim on another currency, a generalized
claim on all currencies being deposited in the pool.
Each of the countries participating in the pool would then
presumably undertake, when in surplus, to accept such claims in
settlement of its net balance of payments gains vis-a-vis the other
participating countries, or to payout such claims when in deficit.
The actual procedures for settlement, and the equally important
procedures for determining the amount of such pooled claims to be
created, could, according to the proponents of this approach, be
resolved in various ways. But when one attempts to begin to
transcribe this appealingly simple concept into specific procedures,
several serious problems begin to appear.
- 9 First, of course, there is the necessity of deciding which
countries may be included in a select group of this kind. That
also means determining, and agreeing upon, the criteria which would
permit the addition of other countries, or require the exclusion of
some, at a later time. Perhaps even more troublesome, doubts begin
to arise concerning each other's internal policies, if countries are
to be mutually dependent upon each other for the creation of an
important part of their own primary reserves. Some may see a
mutual interest in determining the relationship that should prevail
between each country's holdings of reserves in the common pool and
its own creation of internal credit. Perhaps such questions can be
resolved without an impairment of sovereignty that would exceed
realistic possibilities, but, even then, it seems already agreed,
some aspects of the decision-making process would very likely have
to depend upon a unanimous vote of the participating countries.
There would, for example, probably have to be unanimous agreement
on the total amount of CRU's to be created and upon the shares that
each country would have in the initial total of created assets.
Similar agreement as to total and shares would appear to be needed
whenever any subsequent increases might occur.
A second requirement that has been considered essential by
many proponents is that, once issued, the holdings of the
composite reserve unit should have a fixed relationship to the gold
holdings of each of the participants. To be sure, a transition
period would be contemplated, pending some further substantial
redistribution of gold holdings among the participating countries.
But from the very beginning, the transfers related to net current
settlements among the participants would be made, so it is proposed,
by payment or receipt of CRU's and gold in a fixed ratio. The
ratio would be determined by the proportion which the total gold
holdings of all participating countries would bear to the total of
CRU's in existence.
If the CRU were 1D have been created at the end of 1963, for
example, by the Group of Ten countries plus Switzerland, their
combined gold holdings, as shown in column 1 of table 1, were
approaching $35 billion. If the group decided to begin by creating
$1 billion equivalent of CRU's, then all net settlements among
members of the group would proceed on the basis of $35 of gold and
$1 of CRU claims. The United States in these circumstances would
have to make net payments to any of the other countries, in this
ratio, not only as a result of the direct balance of payments
relations between the United States and that country, but also
reflecting the net use of dollars by all other countries in the
Norld, as they employed their dollar holdings to settle balances
Nhich they owed to any of the other members of the group.
- 10 A third requirement, implied by what I have already said, is
that the actual use of the CRU's would be necessarily limited to
members of the participating group. There would thus be no assurance
that the aggregate of liquidity available to all other countries
would remain adequate, merely because certain large countries at the
center of the system were assuring an adequate volume of reserves
for themselves. Nor could it be certain, given the apparent
dependence upon a unanimity rule, that even the supply of CRU's
would be increased adequately over time.
In effect, the present system which operates through a series
of checks and balances, as countries acquire more of a particular
kind of reserve asset than they might wish to hold, would be
replaced by one clearly dependent upon a specified voting arrangement.
There would be both the logic and the rigidity of clear-cut, voted
recisions. One serious question is whether a monetary system,
dependent both upon usage and upon confidence, and serving variable
needs which have always in the past required the element of
flexibility inherent in the relationship between money creation
and credit extension, can be reduced entirely to a voting system
even if one could be devised without.a unanimity requirement.
The countries that see a need for global constriction of reserves
should be able to exert a clear influence upon the result, but one
may question whether they individually or as a group should be able
to exercise a full veto upon the views and needs of the countries
which see scope for expansion. There might instead be a serious
risk that countries in balance of payments surplus should, when
their surpluses have continued long or become large, rely mainly
upon their power to limit the world's money supply in order to try
to achieve balance, rather than fully re-examining their potential
for additional imports, for example, or for making capital exports.
In such circumstances, any other advancing countries might suffer
severe constraint or hardship, perhaps unnecessarily. There is,
therefore, inherent in reliance upon a single definitive scheme,
such as the CRU, the risk of placing too much dependence for the
future upon precise control over the international money supply
a risk that most countries have long since learned to avoid in
handling their own domestic affairs. At home, most countries
instead attempt now to influence the entire spectrum of internal
liquidity, and rely in fact upon the self-enforcing restraints
of the credit-granting process.
- 11 -
I mention these risks frankly, and argumentatively, because that
is the way to full and fruitful examination. I do not wish to imply
that I, or anyone in the United States Government, considers the
case for the CRU closed. I do think the necessary evaluation would
be less than complete if questions of this kind could not be resolved
before any future step toward a CRU were seriously considered.
Deposits and Investments Through the International Monetary Fund
One possible way around some of the difficulties just mentioned
would be to establish a much looser arrangement, through which
individual strong countries whose currencies are used by the Fund
subject to genera] conditions agreed upon by all members of the
International Monetary Fund -- could help further to satisfy the
liquidity requirements of the international community. This might
be for particular countries to make voluntary deposits of their own
currency with the Fund (or alternatively, the Fund itself might
borrow from such countries in their own currencies). Such deposits
would be above the amounts of their currency required for their own
quotas. The country could be given drawing rights comparable to
those of the super gold tranche as "consideratiorl' for the deposit, in
accordance with the conditions agreed upon.
The additional resources thus obtained might, of course, be
held by the Fund for use in meeting regular drawing requests. If
this method should not prove sufficient to assure adequate liquidity
for the rest of the world, at least in the form of owned reserves,
the Fund might use these deposits of currencies, according to some
agreed criteria, for making investments. The investments might
flow to the assistance of many of the less developed countries if
the Fund were to purchase obligations, say, of the IBRD, which
might perhaps in turn make some of its resources available to the
International Development Association. Or another possibility,
subject to a greater degree both of credit risk and of difficulty
in allocation among countries, would be for the Fund to invest
directly in the securities of certain countries -- possibly
countries with well-established securities markets.
There are, to be sure, serious risks on both sides of this
suggestion, that is, both in terms of the deposit or similar
borrowing arrangements and in terms of the investment possibilities.
Agreement on criteria, and the necessity for periodic review and
revision of the criteria, might also become an exercise in futility,
leading to a stalemate or contraction in the supply of actually
available liquid resources. Moreover, on the depositing side,
great care would be needed to avoid making the deposits so attractive
as to discourage efforts of surplus countries to bring their
international accounts into balance or to deter member countries from
- 12 accepting actual quota increases of an appropriate amount, such as
the occasion of the regularly schedule quinquennial Fund quota
reviews. On the investment side, questions would certainly be
raised as to the liquidity of the Fund itself, if it added potential
short-term obligations, available virtually on call, while acquiring
what might prove to be relatively illiquid investments of longer-term.
Moreover, such investments are likely to involve a greater loss
potential, and there would have to be an adequate provision for
this problem, if its new ventures were not to undermine the
prestige it has thus far attained as the responsible and reliable
center of the world's monetary system.
These are only a few of the risks. I have not even begun to
mention the difficulties that would be encountered in establishing
criteria. Nonetheless, I would no more wish to imply that these
approaches should be dismissed than I would wish to suggest that the
CRU no longer deserves careful attention and examination.
Creating Reserves Through Existing Fund Facilities
Whether or not either of the two preceding approaches proved
practicable at some stage in the future, it is probably fair to
say that any approach through the Monetary Fund is less likely than
an entirely separate new entity to cause a divisive fragmentation
among the monetary authorities of the various countries of the world.
Action through the Fund is probably also much more likely to build
upon, rather than to supplant, the existing currency and credit
facilities in use in the international monetary system of today.
That is an important consideration pointing toward a third, and
more modest, possibility for introducing an additional element of
reserve asset creation into the system. For this third possibility
would build entirely on existing arrangernents with a minimum of
changes and a maximum of continued reliance for settlement among
countries through transactions in the actual currencies used in
foreign exchange trading among the nationals of these countries.
This third approach would simply be to make explicit a fuller
reliance upon gold tranche rights as an actual part of the owned
reserves of member countries of the Fund.
As I attempted to explain when we were looking at the tables,
the so-called super gold tranche is already the result of a form
of reserve asset creation -- though we have all become familiar
with its operation without many of us appreciating that reserve
assets were actually being created. The monetary authorities of
the United States, to be sure, have realized for some time that
- 13 they had acquired $1.3 billion of a "hidden reserve" when other
countries in the earlier post-war years drew that amount of
dollars on balance from the Fund. And up through 1962, as we
encountered heavy deficits, we financed a significant part of them
through the use of that $1.3 billion as other countries made
repayments to the Fund in dollars which might otherwise have
remained outstanding as added liquid claims upon us, or perhaps
have been used by receiving central banks to exercise their rightful
claim to purchase gold from our monetary stocks.
Italy experienced the same usefulness of the super gold tranche
when, as a part of its balance of payments financing earlier this
year, a substantial part of the amount it drew from the Fund did
not have to be repaid. For Italy's super gold tranche claim
represented merely a taking back, for its own use, of resources
that had already been put into the Fund when, in earlier years, other
countries made drawings of lire from the Fund.
What may develop, then, over the years as more of the countries
with useable currencies acquire larger quotas in the Fund, is that
more of such countries, more of the time, will hold super gold
tranche drawing rights in the Fund. These will represent additional
highly liquid and fully transferable primary reserve assets from the
point of view of the originating country. To those countries which
have drawn these currencies from the Fund, they will represent
foreign exchange holdings acquired on a borrowed basis, for use in
meeting some of the swings in their balance of payments requirements
for which liquidity of some kind had to be obtained. For this kind
of expansion in reserve assets, nothing is needed save additional
reliance upon the Fund and a relatively steady increase in the
quotas of countries whose currencies can be used in Fund drawings.
But there is another way in which gold tranche claims can also
be incre·ased. It would be relatively simple, whenever the time
seemed appropriate, to permit countries to pay all or a part of their
gold subscriptions, in connection with a quota increase, through
giving the Fund a callable claim on gold. Such a Fund claim on
callable gold, corresponding to the customary business practice of
subscribing capital that is not fully paid in, could be exercised
by the Fund in accordance with agreed voting procedures. The right
of making payment in whole or in part through gold certificates
could be granted to countries according to agreed criteria of
reasonable acceptability.
- 14 But before I get carried away with this particular version of the
money-creating process, it is important to note that this, as any
other form of money creation, can be possible only if it proceeds
under arrangements and policies that will sustain confidence in the
bank itself and in the currency which it issues -- in this case the
Monetary Fund and claims upon it. There are obvious and dangerous
risks that would have to be provided against in the instituting of
any arrangement of this kind. Agreed standards of eligibility for
making payment in this form, and procedures for determining the
Fund's need for calling up the gold, could become the subject of
extensive and difficult negotiation. But, of course, there are
risks of the same type in any effort to introduce a new method,
beyond those methods with which the financial community is already
fully familiar, for adding to the supply of created reserves that
serves the international monetary system. The fundamental decision
that will have to be taken, when the time is reached for actual
consideration of such possibilities, is whether the gain -- from
following any of these possible lines -- is worth the risk.
I have not today tried to face this final question. I am
convinced that the students and the practitioners of international
monetary finance will be greatly benefitted by a thorough and
extensive international debate on the pros and cons of proposals
of the kind I have so briefly outlined today. Whether then to
follow any variant of any of these approaches, and if so, when, can
be best debated after much more progress has been made in sorting
out the issues inherent in the various approaches themselves.
000
ApPENDIX
II-Page 1
TABLE I-OFFICIAL RESERVES AND CREDIT FACILITIES
1
December 31, 1953-December 31, 1963
[In billions of U.S. dollars equivalent)
CREDIT
RESERVES
GOLD AND FOREIGN
OTHER
EXCHANGE
Gold
Foreign
exchange
(I)
(2)
(4)
(5)
(6)
(7)
Subtotal
(4) to
(7)
(S)
Total
reserves
(3)+(S)
(9)
--- --- --- --- --The1953
Eigbt
and Switzerland:
___________________________
1963 __ . ________________________
Cbange _____________________
Group
and Switzerland:
1953of__Ten
. ________________________
1963 ___________________________
5.49
16.44
5.05
10.13
/C. 54
f6.51
.26
1.80
+5.08
+16.011
+1.54
.26
. 66
.24
n.a.
n.a.
2.70
/0.80
t9.n
+.e6
+.24
n.a.
+2.44
+18 .•7
0
0
-- ---- ---- --- --- --- - - --+10.95
Swaps IMF
unact!- standbys 3
vated
(10)
(11)
Other
credit
lines
Subtotal
(10,11,
12)
Other
IMF'
tranches
Potentlal
credit
lines
(12)
(13)
(14)
(15)
--- - - - --- ---
Subtotal
(14)
+(15)
(16)
Total
Total
(S)+(l7)
credit
facilities
(13)+ (16)
(17)
(9)+
(17)
(19)
I. 14
1.•7
1!.t8
34·0•
+3.t9
+5.73
+t1.76
5.6:1
1!.9t
7.t8
n.ta
.t.46
6t.tll
+3.77
+7.39
+9.91
+19.77
1. 61
4.18
1.61
4·13
1.75
4.8..0
18.OG
25.13
+2.57
+2.57
+t.62
+3.1.
+7.13
7.14
13.48
7.14
13.48
7.14
17.15
9.03
tt.09
6G .•6
81.36
+6.34
+10.01
+19.06
+t6.90
0
0
0
1.03
1.48
3.74
1.4S
3.74
I. 48
•. 11
+1.03
0
+1.03
+2.26
+2.26
0
3.62
5.53
9.30
5.53
9.30
+3.C2
+3.77
.05
1.61
4.18
+.05
0
3.67
+3.67
+6.34
0
(18)
GraDd
total
-------
0
1.03
------
29.85
5.33
35.18
1. 75
0
n.a.
1. 75
36.93
0
0
0
34.52
10.51
n.3.
45.03
3.33
.66
.29
4.28
3.11
.51
49.31
--- --- --- --Change _______________________ +4.67
+5.18
n.a. +2.53
+9.85 +1.58
+1£.38 +3.11
+. 51
+.66
+.29
Rest o( World:
1953 ___________________________
4.47
11.78
16.25
.14
.14
0
0
16.119
0
0
n.".
1963 .. _________________________
5.68
14.56
.61
.05
D.a.
fO.e.
0
.66
eo. 90
.05
0
--- --- --- --- --Cbange __ . ____________________ +1. 21
+2.78
n.a.
+3.99
+.47
+.05
0
0
+.52
+.05
+4.51
All Countries:
1953 ___________________________ 34.32
17.11
51.43
1.89
0
n.a.
0
0
0
1. 89
53.!!t
1963 __ . ________________________
40.20
25.07
.71
65.n
3.94
.29
n.a.
4.94
.51
7b.tl
3.16
Change. ______________________ +5.88
+7.96
+111.84 +2.05
+.71
+.29
+16.89 +3.16
+.51
n.". +3.05
I Data for other reserves and credit facilities are incomplete and partly estimated.
• Including super gold trancbe.
• Beyond the gold trancbe.
SUB1ECT TO NEGOTLUION
ASSURED
SubSpecial Swaps
Mlstotal
U.S. used by cellaGold'
(1)+(2) tranche bODds other
neous
party
(3)
FACILITIES
-------------
• Including standbys subject to policy performance.
n.a. Not available .
-------------
-------
APPENDIX
II-Page 2
TABLE II-OFFICIAL RESERVES AND CREDIT FACILITIES 1
Decem\)(>r 31, 1959-December 31, 1963
[In billions 01 U.S. dollars equivalent)
CREDIT
RESERVES
GOLD AND rOREIGN
J:XCBANGE
Gold
(I)
Foreign
exchange
(2)
--The1969_.
Eight__________________________
and Switzerland:
1003 ____________________________
(4)
(6)
(6)
8UBJECr TO NEGOTIATION
ASSURED
OTHER
SubSpecial Swaps MIstotal
U.S. used by cellaOold'
(1)+(2) trancbe bonds other
neous
party
(3)
FACIL.ITIES
(7)
Subtotal
(4) to
(7)
(8)
Total
reserves Swaps IMF
(3)+(8) unact!- standvated
bys'
(9)
(10)
(11)
Other
eredlt
lines
Subtotal
(10.11,
12)
Other
IMF'
trancbes
(12)
(13)
(14)
- - - --- --- ------ - - - - - - --- - - - - - - - - .86
.86
+11.91
9.87
9.30
9.87
9.30
9.81
1'.11'
1'.WJ
11.10
it.M
61."
+3.62
-.57
-.67
+~.06
++-¥J
+9.10
0
3.03
4. 18
~.O$
~.S6
+."
+89
10.110
.05
3.03
4_18
+-05
+1.15
+1.15
+1.10
+1.64
++.M
.51
0
3.67
12.90
13.48
12.90
13.48
1'.90
11.16
16.16
1t.0IJ
81.118
+.51
+3.67
+.58
+.58
++.16
+6.94
+14.13
0
0
0
1.03
3.M
3.74
n.a.
+1.84
+10.9.
+1.03
0
+1.03
-.06
46.0$
2.93
3.33
+.66
-0
.66
+.24
n.a.
n.a.
2.93
4.28
41.66
49.$1
0
3.11
0
.51
0
3.62
+4.07
+6.$t'
+.40
+-66
+.29
n.a.
+1.35
+6.66
+3.11
+-51
12.00
14.56
17.'5
.32
.61
0
.05
.n.a.
n.a.
.32
0
.66
17.61
10.90
+'.99
+.29
+-05
+.34
66.98
66.!1
3.25
3.94
+8.19
+.69
Change _______________________ +5.17
Group
oC ___________________________
Ten and BwitrAllland:
1959.
1003. _. ______________ .. _________ 33.29
34.52
+3.93
+9.10
6.«
10.51
$9.1$
Change ... ____________________ +1.23
Rest 01 World:
1969. _________________________ ._
4.59
1003. ___________________________
5.68
Change. __ .___________________ +1. 09
All Countries:
1959 ____________________________ 37.88
1003_. __________________________ 40.20
--Change .. _____________________ +2.32
+1.90
----- ---
--- - - - - - - --- - - - - - - - - - - - - +-94
0
.29
--- ---- ---- --- --- --- --- ---
19.10
25.07
0
0
.05
0
0
+~.33
+.05
0
3.25
4.94
60."
0
3.16
0
+1.69
+9.98
-t6. '.
- - - - --- - - --- - - 0
n.a.
. 71
0
.29
+.71
+.29
0
n.a.
n.a.
10.'/
---- - - - - - - - - - - - - --- --- - - - - - - --+5.97
n.B.
I Data COl" other reserves and 12'edlt Cacilitles are Incomplete and partly estimated.
• Including super gold tranche.
I Beyond tbe gold tranche.
+3.16
!I.U
+'.81
0
1.03
18.33
(19)
+.91
!9.!1
0
0
(18)
-.06
2.70
1.80
(17)
(17)
~.WJ
n.a.
n.a.
17.•1
16.61
(16)
Grand
total
(9)+
3.M
3.74
.24
6.20
10.13
(16)
Total
Total
(8)+(17)
credit
SubfaclUties
total
(14) (13)+ (16)
+(16)
---------
.66
11.27
16.«
Potential
credit
lines
, Including standbys subject to poUey performance.
n.a. Not available.
+-11
-------
-------
•. 00
1.•1
~
.. O.
16.1~
1~.U
ApPENDIX II-Page 3
TABLE III-OFFICIAL RESERVES AND CREDIT FACILITIES1
December 31, 1953-December 31,1963 [In billions of U.S. dollars equivalent)
CREDIT
RESERVES
GOLD AND FOREIGN
EXCHANGE
The Eight:
1953____________________________
1963____________________________
Gold
Foreign
exchange
(I)
(2)
Other
IMF'
tranches
(ll)
(12)
(13)
(14)
(6)
(7)
(8)
(9)
.26
1.80
o
o
.16
n_a_
n.a.
.26
2.57
9.03
16_Q7
+.16
n.a.
+2.31
+11.0",
+.95
0
0
.05.OS
n.a.
n.a.
0
.13
1.17
3. to
0
.OS
+.13
+1 .•3
+,OS
n.a. . 26
n.a.
2.70
10.80
!9.t?
0
1.03
o
o
+1.03
0
o
0
---- ---- ---- ' - - - - - - - - - --- ---- --- --- --- --+5.14
+14.73
.31
.25
1.77
3.07
-------
.61
- - - - - - --- - - - - - - ---+1.54
0
0
+.61
--- --- --- --- ---
-.06
+1.30
+.05
+,OS
5.05
10.13
10.64
26.67
.26
1.80
0
.66
0
.24
0
+16,03
+1.54
+,66
+,24
n.a.
- +5.08
-------- -----------.28
.17
t.64
2.66
+.22
-.ll
+.11
22.10
15.60
0
.21
2t. /0
Change __ .. _____ .. __ .• ________ -6.50
Reserve Countries:
1953 ________ . __ .... _____________ 24.36
1963 ______________________ . ___ .. 18.08
+.21
-6.£9
.28
.36
--- ---
----Change _____________________ .. -6.28
+.10
.12
.49
0
0
0
0
n.a.
+2.«
+18,.7
n.a.
n.".
.12
.49
t.66
S.14
--- --- --- --- --+.37
0
0
n.a.
+.37
+ .•8
1.37
1.04
0
0
0
n.a.
n.a.
1.37
1.09
f3 .•7
16,90
-.33
o
£4.64
18.46
1.49
1.53
o
o
o
o
16.81
.05
--- - - - - - - - -n.a.- --,28
--
-6, IS
+_04
28.39
31. 70
5.02
10.26
S3,41
41,96
I. 75
3.33
Change_______________________ +3.31
Group of Ten and Switzerland:
1953 .. __________________________ 29.85
1963 __________________________ .. 34.52
+5.24
+S.65
+1.58
5.33
10,51
35. IS
45. OS
I. 75
3,33
Change _______________________ +4.67
Rest of World:
1953_ _______ ___ ___ ______________
4.47
1963_ ______ ___ _______ ____ ______ _
5.68
+5.18
+9,S5
+1.58
11.78
14.56
16.115
£0,24
.14
.61
Change ______ ................. +1. 21
All Countries:
1953 __ .. __ .............. __ ...... 34.32
1963 __ ...... ________ .. __________ 40.20
+2.78
+3,99
+,47
+,05
17.11
25.07
61.43
65, f7
1.89
3,94
0
.71
Change ______________________ . +5.88
BIS:
1953 ___________ ........ __ .. __ .. _
.08
1963 .. ___ ...... _.......... _____ . -.28
+7,96
+13,S4
+2.05
+.71
,61
+.61
o
,66
+.66
o
.05
+.05
o
-6.57
.05
n.a.
n.a.
1.49
1.58
26.13
£0.04
+.05
n.".
+.09
n.S.
I. 75
.21
n.a.
+.21
o
o
.29
+,29
.95
o
o
o
o
o
o
o
-----_50
+.50
_51
+_51
o
o
o
1.58
--- --o
+1. 58
0
o
2.08
.51
-6.09
+2.OS
+.51
4.15
35.16
46.11
0
3.03
n.a.
+2,40
+ /0. 95
+3.03
n.a.
n.a.
1. 75
4,28
36.93
,,9.31
0
3.11
+It.3S
+~.11
n.".
+2.53
n.a.
n.a.
,14
,66
n.a.
+.52
.29
n.a.
n.a.
1.89
4.94
+.29
n.a.
+3,05
o
o
o
o
o
o
o
,OS
-,£S
0
0
+16,89
Data for other reserves and credit facilities are incomplete and partly estimated.
, InclUding super gold tranche,
3 Beyond the gold tranche.
(15)
(16)
Total
Total
I2'OOlt
(8)+ (17)
facilltles
(13)+(16)
(17)
.95
1.48
3.74
1.48
3.74
1.,,8
,.89
+95
+2.26
+2. 26
+3. II
0
o
o
o
o
.08
0
+.08
0
(18)
--- --- ---- ---1.7"
7.18
-+5.61
--
Grand
total
(9)+
(17)
(19)
10.61
1JO.78
+10.16
0
.08
0
. 11
1.77
3. til
+.08
+.11
+1.61
1. 03
1.48
3.74
1.48
3. 74
1.,8
-I- 77
1.7.
7••7
11. til
3-1-
+1.03
+2.26
+2.26
+". t9
+5.7S
+11.78
o
1.30
1.01
1.44
-----
1.30
1.44
1. SO
1.,,6
I . .,
1.9.
3.98
5.69
0,
+1.01
+.14
+.14
+1.16
+1.61
+1.83
o
1,58
2.75
4.12
2. 7ft
4. 12
1.16
6. 70
4- It
8. 79
16."
It. 80
+1.58
+1.37
+1.37
+1.96
+1.81
-3. 61
2.59
4.05
5.56
4.05
5.56
,.06
8.16
5.6.
9.7"
IJO. 18
18.19
+2.59
+1.51
+1.51
+ •. 10
+".19
-1.99
5.53
9.30
5.63
It. 8.
7.18
16.99
40.69
58.95
o
o
3.54
+51
+3.54
+3.77
+3.77
+7.31
+9,71
+18.18
3.62
5.53
9.30
5. 53
9.30
6.63
11.91
7. IB
11.10
.,.•6
61. IS
+3.77
+7. .19
+9.91
+19.77
o
.05
1. 61
4.18
1.61
4. 18
1.61
•. 13
1,75
.,89
18.00
16. IS
+,05
+2.57
+2.57
+1.61
+3.1.
+7,/3
o
7.14
3,67
13,48
-----
7.14
13.48
7.1.
17.15
9.03
te,09
80.•6
87.36
+'6,90
o
.51
+51
0
.05
+3.16
Subtotal
(14)
+(15)
.51
o
o
--o
+4,51
+.05
o
53, St
0
,51
70,21
3,16
--------16.39
£0.90
o
Potential
credit
lines
5.53
9.30
+51
,08
0
o
o
n.a.
0
o
,}5
-.13
,01
o
n.a.
.15
o
o
- - - - - - - ----- ---- - - - - - - - - - - - - ---- - - - - - Change ...... ______ .... ______ -.20
+,15
-.20
o
n.a.
+,15
o
o
o
-.05
+.01
Other International Organizations:
1953_ .. __ .. ____ .... ____________ .
1. 86
n.a_
0
o
I,S6
o
1.86
0
o
o
o
1963 ________________ .. ______ .. __
2,36
/1,36
n.a.
0
o
0
2.36
o
o
o
o
Change ______ __ __ ____ ____ ____ _ +.50
D.a.
o
o
o
o
o
+.50
o
o
+.50
I
Subtotal
(10,11,
12)
(5)
Change _______________________ +9.59
Switzerland:
1953 __________________________ ..
1.46
1963 ________ .. ____________ .. ____
2.82
Group of Ten:
1953_ ___ ____ ________ __ __ __ ____ __
1963____________________________
Other
credit
lines
(7)
(10)
BUBII'£T TO NEGOTIATION
(4)
8.77
IS. 60
Chanll:e ___________ .. _. __ .. ____
United States:
1953 ________ .. _____________ .. ___
1963 _________ .. ______________ .. _
Subtotal
(4) to
Total
reserves Swaps IMF
(3)+(8) unacti- standvated
bys'
(3)
4.74
9.88
Change ______________ . _____ .. _ +10.95
United Kingdom:
1953 ___ • ___ • ____________ .. ____ ..
2.26
1963_. __________ .. _____ • __ .. ____
2.48
A98URED
OTHER
SubSpecial Swaps Mistotal
Gold'
U.S. used by cella(1)+(2) tranche bonds other
neous
party
4.03
13.62
Change... ____________________ +1.36
The Eight and Switzerland:
1953. ___________________________
5.49
1963. __ • ___ • ___________ .________ 16.«
FACILITIES
o
- - +3.77
-+3,62
+3.67
+6.34
+6.34
+10.01
+13.06
o
,01
0
0
0
0
+01
0
o
o
o
-----
o
0
o
0
----o
0
, Including standbys subject to policy performance.
n.a. Not aVailable.
o
.OS
.01
.16
-.11
+.01
+.16
-.0.
0
0
o
----o
0
o
o
1.86
I.M
o
+.60
APPENDIX II-Page 4
TABLE IV-OFFICIAL RESERVES AND CREDIT FACILITIES
December 31,
I~December
CREDIT
RESERVES
GOLD AND FOREIGN
EXCHANGE
Gold
(1)
Foreign
elchange
(2)
Subtotal
(1)+(2)
(3)
Special Swaps
!\tisGold'
U.S. used by cellatranche bonds other
neous
party
(S)
(6)
(7)
Subtotal
(4) to
Total
reserves
(3)+(8)
Swaps IMF
un act!- standvated
bys'
Other
credit
lines
Subtotal
(10. II,
12)
Other
IMF'
tranches
(12)
(13)
(14)
(7)
(8)
(9)
(10)
(11)
- - - - - - - - - - - ---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - The Eight:
1959 __
1963 __
9.34
13.62
Change _______________________
Switzerland:
1959_ ________ ______ _____________
1963_ ___________________________
Change______ ____ ________ ___ __
The Eight and Switzerland:
1959_ _ __________________________
1963 .. _____ __ ___ __ __ __ __________
Change __
United Kingdom:
1959 __
1963 __
Change _____________ _
United States:
1959 ..
1963 __
Change_______________ ________
Reserve Countries:
1959 .. ______________________ . __ _
1963_ _ __________________________
Change_______________________
Group or Ten:
19S9 ... _____ . __ . __ ._ ... _.. ______
1963_ .. _________________________
Change___________________ ____
Group or Ten and Switzerland:
1959_ _ __________________________
1963_ _ __________________________
Change _______________________
Rest or World:
1959_ _____________ __ ____________
1963_ _ __________________________
Change _______________________
All Countries:
1959 .. __________________________
1963_ _ __________________________
I
I
.86
1.80
o
.61
.16
o.a,
n.a.
.86
2.57
16. t7
l6.rn
#~
+B.09
+. 61
+. 16
.13
.25
1.06
11. rn
0
0
0
. 05
0
. 08
n.a.
n.a.
0
.13
106
+.89
+.12
+1.01
o
+.05
+.08
n.a.
+.13
+1.1'
11.27
16. 44
6.20
10.13
17·41
16.61
n.B.
n.a.
.86
2.70
IB.IJIJ
19. t7
+.94
.86
1.80
0
.M
0
.~
- - - - - - - ----- ---- ---- - - - - ---- ---+5.17
n.B. +1. 84
#W
+.94
+.M +.24
+3.93
2.51
n.B.
.07
.24
In
.07
o
0
.17
2.48
o
0
n.s.
.49
I~
.~
-.03
-.07
o
n.a.
+.42
-.W
+.42
o
o
19.51
n.a.
2.00
19.51
2.00
o
o
n_a.
I. 09
o
15.60
.21
15. BI
I. 04
.05
--3.91
-- ------ --- --- --- --+.21
-3.70
-.96
o
.24
2.07
1.53
o
o
22.02
18. 08
.38
11.16
lB. 46
-3.94
+.14
-3.~
-.54
o
31.36
31.70
6.31
10.26
117.67
4/.96
2.93
3.33
o
-------
+.05
n.s.
-.49
n.n.
46. /I
0
.32
~.I-I
.61
0
.05
+1.99
+.29
+. OS
66.98
66. t7
3.25
3.94
0
+. 29
0
0
0
0
0
0
+2.08
+. 51
40.60
o
3.03
o
.51
+. 51
0
. 51
+.51
o
o
0
.32
.66
~.90
0
.05
0
n.B.
+. 34
+11.1111
+.05
--o
0
n.a.
n.B.
3.25
4. 94
60. M
70. II
0
3.16
o
.71
+.71
+,SI
n.a.
n.a.
0
.29
--- --- --- --- --+.69
. SI
-4.19
17.67
17.15
. 29
o
o
. SI
+3.11
0
o
2.08
+6.65
+. 66
2.44
2.36
~.04
0
I. as
0
3. II
+.40
-.15
2.07
I. as
I,. S3
.05
n.B.
n.a.
o
o
--- --+I.as
o
0
o
4t.66
49. 111
+6.1JO
-.111
-.18
- •. 61
+.50
2.93
4.28
0
. 66
+B.19
-.91
.50
n.a.
n.a.
2.93
3. 33
o
11.51
16.90
0
+3.03
39.13
45·03
+5.97
+.111
+1.03
+5.51
6.44
10.51
-.13
-.28
1.81
11./4
o
o
I. 03
o
- - - - ----
+1.22
33.29
34.52
19.10
25.07
o
0
n.a.
+.61
37.88
40.20
+W.94
+.08
+.21
+.40
-+1.
-09
- - -+1.
- 90
-
~~08
n.a.
+'OS
0
n.B.
+4. 19
12.66
14.56
o
~95
.21
+3.9S
4.59
5.68
.95
.61
+. 34
-+1.23
- - - -+4.07
--
o
2.93
4.IS
+.29
0
n.a.
+1.69
+9.98
n.a.
n.a.
0
.15
-.111
-.111
o
.15
--- --- --------------o
-.15
o
+.15
n.a.
+.15
o
o
o
o
n.a.
0
o
t. «
o
o
n.a.
0
o
t.:J6
o
-0
-.08
0
0
0
n.a.
0
Change_______________________ -.08
Data for other reserves and credit facilities are incomplete and partly estimated.
IncludinE super lIold tranche.
• Beyond tbe .old tranche.
o
--- - - - - - - - -n.B.- -+1.-71- - - - - - - - - o
+3.81
Change _______________________ +2.32
Change_______________________
Other International Organizations:
1959. ___________________________
1963_ ___________________________
16·41
M.60
I. 93
2.82
BIS:
1959 __
1963 __
6.07
9.88
-+4.
-28- - - - -
.51
-----+3.16
0
.01
+.51
o
o
-----o
+.01
o
1.«
0
o
1.116
0
o
-.08
0
0
FACILITIES
8UBlECr TO NEGOTIATION
ASSURED
OTHER
(4)
I
31,1963 [In billions or u.s. dollars equivalent)
o
Poten-
tial
credit
lines
(15)
Total
Total
Subcredit
(8)+(17)
faeIljtles
total
(14)
(13)+ (16)
+(15)
(16)
(17)
(18)
Grand
total
(11)+
(17)
(JII)
--- --- ---- ----
.9S
3.80
3.74
3. 80
3.74
3.80
•. 69
'.66
7. MJ
30.76
+.95
-.06
-.06
+. 89
+1.00
+10.69
-----
o
.08
0
----+.08
0
o
o
o
o
3.80
1.03
3.74
-----
3.80
3.74
0
~.rn
. II
'.06
11. IS
+.08
+.11
+1."
11.80
"- 71
'.66
7. ,7
It. 111
11•.
0
. 08
0
O.
+1.03
-.06
-.06
+.117
+t.81
+11. 91
I. 01
o
1.95
I. 44
1.95
1.44
1.96
•. ~
'.ot
"-71
+1.01
-.51
-.51
+.60
+.91
+.81
4.12
4.12
"- /I
6.10
6./1
6.79
t6.6IJ
+1.68
------
o
4.12
I. as
4.12
-----
'.9,
6.69
tf.OO
0
o
+.67
-11. OIJ
o
2.59
6.07
5.56
6.07
5.56
6. rn
B.16
8.14
9.711
30·40
IS. 19
+2.59
-.51
-.51
+'.08
+1.69
-'.11
o
3.54
9.87
9.30
9.87
9.30
9. 1fT
It. B4
/1.80
16.99
60.•1
+3.54
-.57
-.57
+'.117
+4·19
H·48
o
3.62
9.87
9.30
9.87
9.30
9. 1fT
It. 91
11.80
+3.62
-.57
o
.05
3.03
4.18
3.03
4.18
11.03
"-'"
+.05
+1.15
+1.15
+I.~
o
12.90
3.67
13.48
-----
12. 90
13.48
It. 90
17.16
.l6. 15
1t.09
111. /IJ
1fT.1J6
+.58
+"- IS
o
0
o
.01
o
+.01
o
0
o
0
-----
+6.94
+1"- ..,
+1. as
-----
+3.67
+.as
o
0
.01
0
---+. 01
o
o
0
0
0
---o
o
• Inc1udiDg standbys subject to polley performance.
o.a. Not Bvallable .
------
------.57
+11.06
o
0
68.66
61.611
11.~
6•. ..,
+"-40
+9.10
I1.U
~.OO
L811
t6./IJ
-+1.64
--
0
+"-611
-./IJ
. 16
-. /I
+.16
t-.Ol
o
o
o
•. «
•••
.0/1
APPENDIX
II-Page 5
Notes to Accompany Tables on Reserves and Oredit Facilities
Table Column
No.
1. Gold. Figures are published data from International Financial Statistics.
2. Foreign Exchange. Figures are pubHshed in IFS.
3. Subtotal of (1) and (2) represents the sum of gold and foreign exchange
(primary reserves).
4. Gold Tranche, including super gold tranche, is published in IFS.
5. Special U.S. Bonds represent U.S. Government nonmarketable obligations
payable in foreign currencies or in U.S. dollars, with an original maturity of
more than one year, and convertible at the option of the holder into shortterm Treasury obligations.
6. Swaps Used by Other Party represent that part of a reciprocal swap arrangement that corresponds to a swing credit that has been drawn upon by the
other party, and is therefore an asset of the drawee country. Where swaps
have been activated and amounts are held in the form of foreign exchange,
they appear under "foreign exchange". The total amounts for swaps
included in the tables will always add up to twice the original amount
available to one party in the case of a group of countries that includes both
parties to the swap.
7. Miscellaneous includes, but is not limited to, forward or other availabilities,
long-term mobilizable securities and other foreign assets that have been
acquired by monetary authorities, such as IBRD notes, etc.
Tabu Column
No.
9. Total Reserves represent the sum of primary and other reserves. Total may
not be statistically exact since some countries treat special U.S. bonds as
part of foreign exchange reserves and -therefore there may be some element
of double counting. This also applies to Columns 8, 18 and 19.
10. Swaps Unactivated. This represents the standby facilities that have been
established under swap agreements but not activated in the sense of reciprocal acquisition of foreign exchange.
11. 1M F Standbys. This column would include standby facilities that can be
drawn upon without further policy review; there was one of these in existence
on December 31, 1963.
12. Other Credit Lines. This column would include bilateral or other assured
credit lines that may exist now or in the future.
14. Other I MF Tranches. The amount shown in this column (together with
the amount in column 11) represents for each country the undrawn portion
of four credit tranches, which if drawn in full would bring the currency
holdings of the IMF in that country's currency to 200 percent of quota.
15. Potential Credit Lines. This column registers the potentiality of other credit
facilities that may be negotiated, or may be available after negotiation under
some kind of policy review.
18. Total of Other Reserves and Credit Facilities. This is the sum of all the items
except gold and foreign exchange reserves.
In hie tenure at the Traaaury Mr. Bullltt baa uphold
tho higbea t a tandarda of public .arlice and contributed
•
significantly to the Department'a part in maiDta1D1ng Amoricata
.
position of atrangth aDd 1eaderah1p in international affairs.
He 18 jus tly c:1aaan1Dg· of the Treasury Department Exceptional
Service Award.
CITATION
EXCEPTIONAL SERVICB &lARD
JOHN C. BULLIn
For tha pas C three yearl JohnC. Bul11tt baa served as
Deputy Assistant Secretarr and then Aas1stant
~ecretaX'1
of the
Treasury for Intemat10nal Affaire.· H1a aenice baa been truly
dis tlngu18 had.
These years bave been a period of.p4rticularly heavy
Treasury responsibilities 111 the international area.
Mr. Bullitt'a response to these responsibiUtiGs has been
effective and tmaginaCive.
As Chairman of the Executive
Committee of tho Cabinet Committee on Balance of Payments I he
has played a·key role 10 the formulation and execution of
policies which have been respoDBib1e for the improvement of
this country'. balance of payments deficit. As U. ·S. Executive.
Director of the Vorld Bank and the officer of this Department
with primary responsibility 10 the fi8ld.of foreign ASsistance.
his leadarahip4and judgment have .been 10 large JDaasure responsible
for recent 1n1t1ativea deaignad Co promote l1ltemational
cooperation 1D development pNll'ama.
to day decistons will .bow
dl~Gt
end 1mmediat. reau1ta in
thi. atruggle.
The final mea.ure of public •• nice 1. just that -
•• nina
the people •• and John Bu1l1tt df.d that at the Treasury and he
will do It in New Jersey.
X have every confidence that be. and
the anti-poverty program 10 New Jersey will be vex, aucceasful.
New .Jeraey 18 lueky to gat him.
In recognition of the great contribution be haa made to
the United State. Government during hi. 8ervice. 1 will now
present to him the Treaauxy·. Exceptional Service Award which
earn.. with
lt the 'ollowing cltatiol'U
(Beau citation and pre.ent. _u4)
- 3 service here.
to
I know, also, that he has a strong
Berve~ -thahpeople
d~terminat1on
of New Jersey wall and to make the poverty
program in New Jersey a model for the entire nation.
I am sure that there are many difficult problems ahead for
him, but I am equally aure that he will meet them energetically,
effectively and capably.
The United Statee GovornmGnt 18 lOling a very able public
servant but the people of New Je,rsey are gaining an extremely
competent administrator.
Governor Richard J. Hughes has made
sn extremely wise choice in John Bullitt.
While we will miss
his keen judgement and his unusual ability, I cannot help but
feel honored that he has chosen to devote his energy to such a
worthy task
8S
fightiUg poverty, and particularly in our own
State of New Jersey.
For in this war on poverty he of all
people would want to be in the very front lines. ltihere his day
~ 2 •
1 know that be raally baa hi. beax-I: ill bl.
DW
job.
1 can under.taneS thi. and :I.D • very nal way. I .nvy him,
for tbara
81"8
f... COIltrlbutlona thst • un can aak:e today greater
than that of s.ning in rr:.sldent Jobnaon'. ".~ on poverty.
Knowing John Bul,litt, I ... DOt at .11 am:pri.ed that he
would want to join in the attack
OD
poverty.
Sa ha. a .trong
eSeaire to Nne whan be ,,111 M molt uaGfui anc! "hara h. CaQ
make the greateat contribution to helping people in need.
As the Pre.lc1ent .aid I
"I have been aware for some time that
Governor Bughea want. you to xeturn home to direct New Jersey',wu
a.gainat poverty, an4 I reluctantly accept yow: reaignation becauat
I can think of
DO
IIIOre important ."ignment
fo~
• man of your
considerable talent •• "
I know that John will bring to b1a new job the .ama
tremandoua energy and total dedication that have 1118r1ce4 hia
~~(
~/1
/
. BEMAlWI BY SECUTARY,\DILLON A'tfUNCHEON
FOIl ASSISTANT SECRETARY JOHN BtJLLI'1'T
,
TUESDAY. OCTOBER 13. 1964
It 1. DOt an altogether bapP1 oce.,too when .8 IIIWlt ••y
goodbye to a member of
with ua on
10
OUI'
1_11
amup
who he. worked
many of the important project.
during the pa.t
fo~
we
'0 010••1,
bav. tackled
y.ara.
During hie time at Tx.a.ur.y John Bu111tt baa been
partlc~r~
concerned w1th the problema of the people f.n the dev.lopinS
n.tiona.
In negotiating international agreement. and in
arranging for the financing of development loana for tbeM
nations be baa made • aign1ficant and la.ting contribution to
a bettar lUe lor a great u\llbel' of people 1n the world.
At the a.. ti1De be hal ,boNn b1taaeU . . able guardian of thl
beat interaata of the
Uni~.d
Statal. and. hi. WOR in helping to
bring the balance of pa,..nt. .ituatloll under control ha. earnecl
respect of all of ua.
1 would like
V8Q'
mucb to keep John in
the Tn••ury but 1 would be the la.C to ..te. lWa' to atay. because
oJ
TREASURY DEPARTMENT
October 14, 1964
FOR IMMEDIATE RELEASE
ASSISTANT SECRETARY BULLITT GIVEN
EXCEPTIONAL SERVICE AWARD
Treasury Secretary Dillon presented the Treasury's Exceptional
Service Award to Assistant Secretary John C. Bullitt at a ceremony
yesterday. Mr. Bullitt leaves Treasury October 15 to head the
State of New Jersey's Anti-Poverty Program, to which post he was
appointed by Governor Richard J. Hughes
At the presentation, which took place at a luncheon given him
yesterday by his friends and associates at the F Street Club,
Secretary Dillon cited Mr. Bullitt for his work during the past
3 years, "a period of particularly heavy Treasury respons ibi li ty
in the international area.
Secretary Dillon's remarks are attached.
D-1366
REMARKS BY SECRETARY DOUGLAS DILLON AT LUNCHEON
FOR ASSISTANT SECRETARY JOHN C. BULLITT
TUESDAY, OCTOBER 13, 1964
It is
goodbye to
with us on
during the
not an altogether happy occasion when we must say
a member of our small group who has worked so closely
so many of the important projects we have tackled
past four years.
During his time at Treasury John Bullitt has been particularly
concerned with the problems of the people in the developing
nations. In negotiating international agreements and in arranging
for the financing of development loans for these nations he has
made a significant and lasting contribution to a better life for
a great number of people in the world.
At the same time he has shown himself an able guardian of the
best interests of the United States, and his work in helping to
bring the balance of payments situation under control has earned the
respect of all of us. I would like very much to keep John in the
Treasury but I would be the last to ask him to stay, because
I know that he really has his heart in his new job.
I can understand this and in a very real way I envy him,
for there are few contributions that a man can make today greater
than that of serving in President Johnson's war on poverty.
Knowing John Bullitt, I am not at all surprised that he
would want to join in the attack on poverty. He has a strong
desire to serve where he will be most useful and where he can
make the greatest contribution to helping people in need.
As the President said: "I have been aware for some time that
Governor Hughes wants you to return home to direct New Jersey's
war against poverty, and I reluctantly accept your resignation
because I can think of no more important assignment for a man of
your considerable talents. II
I know that John will bring to his new job the same
tremendous energy and total dedication that have marked his
service here. I know, also, that he has a strong determination
to serve the people of New Jersey well and to make the poverty
program in New Jersey a model for the entire nation.
- 2 -
I am sure that there are many difficult problems ahead for
him, but I am equally sure that he will meet them energetically,
effectively and capably.
The United States Government is losing a very able public
servant but the people of New Jersey are gaining an extremely
competent administrator. Governor Richard J. Hughes has made
an extremely wise choice in John Bullitt. While we will miss
his keen judgment and his unusual ability, I cannot help but
feel honored that he has chosen to devote his energy to such a
worthy task as fighting poverty, and particularly in our own
State of New Jersey. For in this war on poverty he of all people
would want to be in the very front lines, where his day-to-day
decisions will show direct and immediate results in this struggle.
The final measure of public service is just that -- serving
the people -- and John Bullitt did that at the Treasury and he
will do it in New Jersey. I have every confidence that he, and
the anti-poverty program in New Jersey will be very successful.
New Jersey is lucky to get him.
In recognition of the great contribution he has made to
the United States Government during his service, I will now
present to him the Treasury's Exceptional Service Award which
carries with it the following citation:
CITATION
EXCEPTIONATL SERVICE AWARD
JOHN C. BULLITT
For the past three years John C. Bullitt has
served as Deputy Assistant Secretary and then
As-sistant Secretary of the Treasury for
International Affairs. His service has been truly
distinguished.
These years have been a period of particularly
heavy Treasury responsibilities in the international
area. Mr. Bullitt's response to these responsibilities
has been effective and imaginative. As Chairman of
the Executive Committee of the Cabinet Committee on
Balance of Payments, he has played a key role in the
formulation and execution of policies which have been
responsible for the improvement of this country's
balance of payments deficit. As U.S. Executive
Director of the World Bank and the officer of this
Department with primary responsibility in the field
of foreign assistance, his leadership and judgment
- 3 -
have been in large measure responsible for recent
initiatives designed to promote international
cooperation in development programs.
In his tenure at the Treasury Mr. Bullitt
has upheld the highest standards of public
service and contributed significantly to the
Department's part in maintaining America's
position of strength and leadership in international
affairs. He is justly deserving of the Treasury
Department Exceptional Service Award.
000
r
)
and exchange tenders will receive equal treatment.
Cash
8''"- will be made
adjustments
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 Ale
or other disposition ot the bills, does not have any exemption, as such, and
1088
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 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 ot 1954
the amount of discount at which bills issued hereunder are Bold is not
conside~
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 b·
clude in his income tax return only the difference between the price paid for
8~h
bills,· whether on original issue or on subsequent purchase, and the amount ac:tua1l1
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 '.I.'reasury bills and govern the conditions of their.issue.
Copies of the circular may be obtained from any Federal Reserve Bank or BraDch.
- z-
dec1.mals, 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 v:l.U
be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of customers
provided the nBI11es 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 ot
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.
Immediately a.t'ter the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made by
the 'l'reasury Department of the amount and price range of accepted bids.
ThOBe
submitting tenders will be advised of the acceptance or rejection the reo t • The
secretary of the Treasury expressly reserves the right to accept or reject any
or a.ll tenders, in whole or in part, and his action in any such respect sh&l.l be
final.
Subject to these reservations, noncompetitive tenders for $
less for the additional bills dated
July ~ 1964
1ng until maturity date on January.~1965
$
{&tf0o or less tor the
bidder will be accepted in
, (
~
or
91 days remain-
il6i
) and noncompetitive tenders tor
182 -day bills without stated price trom 8Z1Y one
(el)
ruu at the average price (in three decimals) of ac-
cepted 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
Octobetiif 1964
, in cash or other immediately available f\mds or
in a like face amount ot Treasury bills maturing
October 22, 1964.
~
Cash
~x!
JP)xx~
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
.
October 14, 1964
~
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two aerie.
of Treasury bills to the aggregate amount of $ 2, 200~,ooo
cash and in exchange for Treasury bills
of $
2120~41000
ma.t~ring
or thereabouts, for
October 22, 1964
, in the _WIt
W
, as follows:
october~
91 -day bills (to maturity date) to be issued
W
,
1964
in the amount of $ 1, 200~0, 000 , or thereabouts, representing an additional amount of bills dated
and to mature
January 21, 1965
JU?-'Y 25:t&f964
, originally issued in the .
{§f
amount of $ 8991£4:000
, the additional and original bills
to be freely interchangeable.
182
-day bills, for $ 1,000,000,000 , or thereabouts, to be dated
tm:
fllf
Oct0.fUf22. 1964, and to mature
April 2{uf965
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 onl1,
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 aDd
$1,000,000 (maturity value).
'!enders will be received at Federal Reserve Banks and Branches up to the
f.
Daylight Saving
,
clOSing hour, on"!-thirty p.m., Ea.stern~ time, Monday, October 19, 19M""!
"fiStEach tende1:
Tenders will not be received at the Treasury Department, Washington.
must be for an even multiple of $1,000, and in the case of competitive tenden.
price offered must be expressed on the basis of 100, with not more than thre8
TREASURY DEPARTMENT
Oc tober 14, 1964
OR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
or two series of Treasury bills to the aggregate amount of
2,200,000,000,or thereabouts, for cash and in exchange for
reasury bills maturing Oc tober 22,1964,
in the amount of
2,201,614,000, as follows:
91-day bills (to maturity date) to be issued
.n the amount of $1,200,000 ,000, or thereabouts,
'ldditional amount of bills dated July 23, 1964,
~ature January 21,1965, originally issued in the
899,827,000, the additional and original bills
nterchangeable.
October 22,1964,
representing an
and to
amount of
to be freely
182 -day bills, for $ 1 ,000,000,000, or thereabouts, to be dated
etober 22, 1964, and to mature April 22, 1965.
The bills of both series will be issued on a discount basis under
ompetitive and noncompetitive bidding as hereinafter provided, and at
laturity their face amount will be payable without interest. They
111 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 Daylight Saving
lime, Monday, Oc tober 19, 1964.
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 price offered must be expressed on the basis of 100,
:1th 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
prwarded in the special envelopes which will be supplied by Federal
eserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
,ustomers provided the names of the customers are set forth in such
enders. Others than banking institutions will not be permitted to
:~bmit tenders except for their own account.
Tenders will be received
1thout deposit from incorporated banks and trust companies and from
ii!sponsible and recognized dealers in investment securities. Tenders
rom others must be accompanied by payment of 2 percent of the face
nount of Treasury bills applied for, unless the tenders are
~companied by an express guaranty of payment by an incorporated bank
r trust company.
D-1367
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ which public
announcement will be made by the Treasury Depar~ent 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,OOOor less for the additional bills dated
July 23, 1964,
(91~ays remaining until maturitr date on
January 21,1965) 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 October 22, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing October 22, 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 f~
any Federal Reserve Bank or Branch.
000
-
6 -
I will now introduce President George J. Kelly of the
American Bankers Association who will tell you in more detail
about the "Calling all Coins" campaign.
I believe he will
also show some films which will be used in the campaign and
I would like to express the appreciation of the Treasury
Department and of the United States Government to the artists
who gave their time and talent to the preparation of these
films.
If any of you have any questions on the campaign later
on D Mr. Kelly will be here to answer questions and also1our
o~Assistant Secretary of the Treasury Robert A. Wallace
and Miss Eva Adams our Director of the Mint.
And now here is Mr. Kelly.
-I·' .
- 5 -
in coin production should help to relieve what otherwise
might have developed into a critical coin shortage.
- 4 perform a very real public service by increasing the
voluntary return of coins to circulation and lessening the
strain on the existing supplyo
The truth is that the habit many people have of
emptying the change from their pocket or purse into the
bureau drawer or some other place of temporary safe-keeping
has contributed materially to the coin shortage.
By en-
couraging people to return these coins to circulation, the
American Bankers Association is helping to avoid the possibility of this temporary shortage developing into a real
nuisance for both retailers and consumers.
I am sure that public-spirited citizens will be quick
to return to circulation whatever change they may have tucked
away, and the combined result of this campaign and the increase
r
, ....... . i_.
- 3 -
Meanwhile the sixty additional coinage)lresses now being
purchased and installed by the Mint will
up to an annual rate of more than 9 billion
7t~fl:"'· .~~ of tkis lis-eal ~~!t~ on/ ~~~t't6'5.
,
~~s,-~,.J
{c/c ('
.( If, tf
-6
j-
\
That will give us a total
Nt-A~( ('
production for --etm. yea~ of ,-.Clt;;::%~ billion coins '/I double
last year's output.
In addition, plans for a new mint in
Philadelphia are moving forward.
Furthermore, in order to
discourage coin hoarding by speculators, for the present new
coins minted in 1965 will continue to carry the 1964 date.
That means that we can look forward to the end of the coin
shortage next year.
HO~Never,
in the meantime the temporary shortage
of coins poses a serious problem particularly with the approach of
the Christmas holidays and the expected increase in buying which
always takes place at that time.
For that reason, the ABA campaign at this time will
- 2 The demano has increased for a number of reasons, including
the steady growth in population and business and the increased use of vending machines and parking meters.
There
has 3lso been a phenomenal rise in the number of amateur
coin collectors, from 2 to 10 million in the past 5 years -although the real problem has been coin speculators.
These
speculators have been buying up coins in quantity and keeping
them off the market in hopes of higher numismatic value.
The Treasury is working both its mints -- at Denver and
Philadelphia -- twenty-four hours a day, seven days a week
and as a result, this year (fiscal 1965) they will produce AL~bS1
fiscal
twice as many coins as they did last year (11364). At present
the mints are producing almost 20 million coins a day.
This
more than
means that production is running at an annual rate of/7 billion
coins, compared to a rate of 4.3 billion during fiscal 1964.
TREASURY DEPARTMENT
Washington, D.C.
October 14, 1964
FOR IMMEDIATE RELEASE
REMARKS BY THE HONORABLE DOUGIAS DILLON
SECRETARY OF n1E TREASURY
AT THE OPENING OF THE ABA CAMPAIGN, 1JCALLING ALL COINS"
ROOM 4121, MAIN TREASURY BUILDING, WASHINGTON, D.C.
WEDNESDAY, OCTOBER 14, 1964, 11 A.M. EDT.
I am happy to be here this morning to help President
George J. Kelly, of the American Bankers Association, open
its "Calling All Coins" campaign to help alleviate the coin
shortage.this fall.
The Treasury is glad to cooperate in this campaign because
the shortage of circulating coins is an immediate and serious
problem.
Although the Government has
minted
9nough coins
to handle all the nation's normal needs, a substantial number
of these have disappeared from circulation at a
t~e
when the
demand for coins is greater than we have ever known before.
TREASURY DEPARTMENT
Washington
October 14, 1964
FOR IMMEDIATE RELEASE
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE OPENING OF THE ABA CAMPAIGN, "CALLING ALL COINS"
ROOM 4121, MAIN TREASURY BUILDING, WASHINGTON, D.C.
WEDNESDAY, OCTOBER 14, 1964, 11 AM, EDT
J am happy to be here this morning to help President
William F. Kelly of the American Bankers Association open its
"Calling All Coins" campaign to help alleviate the coin shortage
t~is fall.
The Treasury is glad to cooperate in this campaign because the
shortage of circulating coins is an immediate and serious problem.
Although the Government has minted enough coins to handle all the
nation's normal needs, a substantial number of these have disappeared
from circulation at a time when the demand for coins is greater than
we have ever known before.
The demand has increased for a number of reasons, including
the steady growth in population and business and increased use of
vending machines and parking meters. There has also been a
phenomenal rise in the number of amateur coin collectors, from 2
to 10 million in the past 5 years -- although the real problem has
been coin speculators. These speculators have been buying up coins
in quantity and keeping them off the market in hopes of higher
numismatic value.
The Treasury is working both its mints -- at Denver and
Philadelphia -- twenty-four hours a day, seven days a week and as
a result, this year (Fiscal 1965) they will produce almost twice
as many coins as they did last year (Fiscal 1964).
At present the
mints are producing almost 20 million coins a day. This means that
production is running at an annual rate of more than 7 billion
Coins, compared to a rate of 4.3 billion during fiscal 1964.
D-l368
- 2 Meanwhile the sixty additional coinage presses now being
purchased and installed by the Mint will bring coin production up
to an annual rate of more than 9 billion coins early. in 1965.
That will give us a total production for fiscal year 1965 of
eight billion coins, near11 double l~st year:s output •. In
addition plans for a new mint in Ph1ladelph1a are mov1ng forward.
Furtherm~re in order to discourage coin hoarding by speculators,
for the pre~ent new coins minted in 1965 will continue to carry
the 1964 date.
That means that we can look forward to the end of the coin
shortage next year. However, in the meantime the temporary shortage
of coins poses a serious problem particularly with the approach of
the Christmas holidays and the expected increase in buying which
always takes place at that time.
For that reason, the ABA campaign at this time will p~rform a
very real public service by increasing the voluntary return of
coins to circulation and lessening the strain on the existing s~p~.
The truth is that the habit many people have of emptying the
change from their pocket or purse into the bureau drawer or some
other place of temporary safe-keeping has contributed materially to
the coin shortage. By encouraging people to return these coins to
circulation, the American Bankers Association is helping to avoid
the possibility of this temporary shortage developing into a real
nuisance for both retailers and consumers.
I am sure that public-spirited citizens will be quick to return
to circulation whatever change they may have tucked away, and the
combined result of this campaign and the increase in coin production
should help to relieve what otherwise might have developed into a
critical coin shortage.
000
TREASURY DEPAR'lHl!2iT
WuhiDgton, D. C.
IMMEDIATE RELEASE
D-1369
THURSDAY, OCTOBER 15,1964
The Bureau ot CUstou announced todq prel.1minary tigures sbgwlng tile
quantities ot wheat and m1lled wheat products authorised to be entered, or
withdrawn trom warehouse, tor consumption UDder the import quotas estabUlbecl
in the President's proclamation ot Ha.r 28, 1941, as mod1t1ed bY' the Pre.1dtllt'a
proclamation ot AprU 13, 1942, and provided tor in the Tarift Schedule. of
the United States, tor the 12 months CODlD8l1cing Mq 29, 1964, as tollow:
•
Country
Milled wheat products
Wheat
ot
Origin
Established
Quota
Established
Quota
(Bushels
Canada
China
Hung&r1'
Hong Kong
Japan
United Kingdom
Australia
Germany
STria
Hew Zealand
ChUe
Netherlands
ArgeDtina
Ital7
CUba
France
Greece
Mexico
795,000
795,000
100
100
100
100
2,000
100
1,000
100
Panu·
Uruguq
PolaDi am Danzig
SV8den
Yugoslavia
Ho"",
Canary Islands
1,000
R"N n1 a
Guata·] a
100
BrasU
100
Union ot Soviet
Socialist Republica
100
BelgiUll
100
Other toreign C01Dltries
or areas
800,000
795,000
3,81.5,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
It.,OOD,,.,
3,815,000
120
--
),815,ut
TREA.S URI DEl>AR'lHI!2fT
Wuh1Dgt.on, D. C.
IMMPDIATE RELEASE
THURSDAY, OCTOBER 15,1964
D-1369
The Bureau ot CUstoma aDnOunced todq prel1m1.nary tigures showing the
quantities ot wheat and milled wheat product. authorised to be entered, or
withdrawn trom warehouse, tor COD8UJIIptioD UDder the import quotas establ1shed
in the President's proclamation ot Hq 28, 1941, as mod1t1ed by the President's
proclamation ot AprU 13, 1942, am provided. tor in the Taritt Schedules ot
the United States, tor the 12 months colllDencing M&1' 29, 1964, as tollows:
:
••
••
Country
:
:
:
Wheat
ot
Milled wheat products
••
I
•• Established
••
Quota
Origin
Established
Quota
(Bushels
Canada
795,000
China
Hungary
Hong Kong
Japan
100
Un! ted Kingdom
Austrilla
100
Germany
100
S)"ria
Hew Zealalld
Chile
100
NetherlaMs
Argentina
2,000
Italy
100
CUba
France
1,000
Greece
Mexico
100
Panau.
Uruguq
Pola1ld am Danzig
Swec1en
Yugoslavia
Horwq
Canary Isl.al¥is
1,000
Rwaania
100
Guatemala
100
BruU
Union ot Soviet
100
Socialist Republics
Belgium
100
Other foreign ~tries
or areu
795,000
BOO. 000
795,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
3,815,000
4,000,000
3,815,120
120
Q L,"
v_
-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 OTIiERWISE
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:
Es tablished
TOTAL QOOTA
Country of Origin
United Kingdom ••••••••••••
Canada •••• .; •••••••••••••••
France ....•...•.....•.••••
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium ••......•.....•.•••
Japan •••••••••••••••••••••
China •••••••••••••••••••••
Eg-yp t ••••.•••.••••••••••••
Cuba ••••••••••••••••••••••
Germany .••.•.••••••••••.••
Italy •........•...•....•.•
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509
Included
~Tep~~e4.,~
','
~n
total
~mports,
column 2.
the Bureau of Customs.
.... _,
~"'7n
Established
33-1/3% of
Total Quota
1,441,152
239,393
75,807
22,747
14,796
12,853
25,443
7,088
-
Other, including the U. S.
~I
Total Imports
Sept. 20, 1964, to
Oct. 12. 1964
239,393
1,599,886
Imports
11
Sept. 20, 1964,
to_O~t. 1.2__ l.96L.
TREASURY DEPAR'DmIT
Washington, D. C.
IMMEDIATE RELEASE
THURSDJ..Y, lQCTOBEBL 15, 1964
D-1370
Prel.1minary' data on imports for consumption of cotton am cotton waste chargeable to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amen:led, am as modified by the Tariff Schedul.es of the
United. States which became effective August 31, 1963.
..
(The country' designations in this press release are those specified in the appeulix to the Tarift Schedul.es of the
United States. There is no political connotation in the use of out..lllxled names.)
COTTON (other than linters) (in pounds)
Cotton under 1-118 inches other than 1'OUBb or harsh under
Imports September 20. 196L.. - October 12. 1.96L.
Country ot Origin
EgJpt and Sudan••••••••••••
Peru •••••••••••••••••••••••
India
am
Pakistan •••••••••
China ••••••••••••••••••••••
Mazico •••••••••••••••••••••
Bz-asU ••••••••••••••••'•••• •
Union ot Sodet
Socialist Republics ••••••
Argent~ •••••••••••••••••
Haiti ••••••••••••••••••••••
~r ••••••••••••••••••••
Y
Y
Established Quota
Country ot
Ig?orts
783,816
21+7,952
2,003,483
1,370,791
8,883,259
618,723
0rWn
3/4"
Estahl1 shed Quota
HOn:luraa ••••••••••••••••••••
Par~
••••••••••••••••••••
Colombia••••••••••••••••••••
3,1l3,1l5
11
475,124
5,203
237
9,333
"I
g
Iraq ••••••••••••••••••••••••
British East Af'riea•••••••••
Indonesia and NetherlaDls
New
~11ne~ •••••••••••••••
16.004
U.s ....
Auggt. 1. 1964. - OqtobGr 12. 1.964
Stapl.e Length
1-3/an or more
l.-S/J2!J' or more and under
Allgation
T5!ftrt.S
39.590.718
39.590.778
9,665
(Tangu:l.s)
or ..,re aDd UDder
1.-;M"
~
i -=eelf
z'Ki
______
2.240
1'1gerla.•••••••••.••••••••••••
Britiah V. A.tr.l.ea. ••••••••••
Other. 1mJJJd1ng the
1-3/an
195
71.)88
21.321
Cotton l-1/an or IIIIOre
Established YearlY QBota - 45.656.429 lbs.
1.-1/"
871
124
British W. Indies •••••••••••
EJtcept Barbados, Benuia, Jamaica, Trinidad, alii Tobago.
EJtcept Nigeria and Ghana.
.
Imports
752
1... 671... 369
~-.............::___=_-__C.~;;:::_
C440!JULLSC$:a:
~
L
5.m
!-r?rt:e
TREASURY DEPAR'D4:Em
Washington, D. C.
DMmIATE RELEASE
THURSDf.Y, ~OCTOBEa. 15, 1964
D-1370
Prei.1.a:lnary data on imports for consumption of cotton am cotton waste chargeabl.e to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amerded, and as modified by the Tariff Schedules of the
United States which became effective August 31, 1963.
~
('The country designations in this press release are tho~e specified in the apperdix to the Tariff Schedules of the
United States. There is no political. connotation in the use of ou1:,a)ded names.)
CO'MOH (other than linters) (in poums)
Cotton U1'J1er 1-1/8 in(;h. other than rough or harsh under
~rt~_S_eptellbe{"~ 1961.._-_ Octob~~& 19~ __
Country
or
Origin
Egypt and Sudan ••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
r;~
••••••••••••••••••••••
;T,~d.CO •••••••••
" •••••••••••
R,'~ •••••••••••••••••••••
Utdon
or
Established Quota
Par~
HAiti ••••••••••••••••••••••
~r ••••••••••••••••••••
217
9,333
II EEcept Barbados, Belwda,
.?I EEcept 8igena and Ghana.
••
(J <) . . .,. IW
*'
V
q, • • • • • •
•••• ~8.e •• ~.~ • • • o • • • ~ • • •
British East !frlca.~ ....... .
I~
3, ll3, 115
618,723
•••••••••••••••••
krgent~
G •••••••••
••••••••••••••••••••
(~olombia ••• «>
Helf Guinea•••••••
It , . • • • • • • •
British W. Indies •••••••••••
~I
StI
W1ser.La•••••••••••••••••••••
British V. A.trica. ............ .
other. inclming the U.s ... .
Jamaica, Tr1n1dai, au::l Tobago •
.
Cotton l-1/sn or Imre
Established YearY Quota - 45.656.420 lbs.
;Imports Augufi 1. 1964 - Qctober 12.
1-5/32" or ..,re ard UDder
1-~r~s:.r~~~~
Y79?-.., L
2'! L
:Jt_erc::s=:t=0o
-.4"£ 62 ;;j~·5!
1964
Allocation
St.apl.e Length
1-3/8" or JlDre
~ ... S:Ii:~.
nwwI..
'CW"$2iii ....... I
*t96't'
752
871
l24
195
2,240
Indonesia and Natherlauis
y
Sodet
475,l24
5,203
Estab11 abed Quota
Country of Origin
Imports
Honduraa ••••••••••
783,816
247,952
2,003,483
1,370,791
8,883,259
3/4"
39,590,778
1.~. ~~
9,665
~G
*-.:: "!iO_t........:".
.Oiifi:::t?um-:;.x
X"'!!rta
39.S90.Tf8
_
-~~-~
\56qe"i"'1"q-~ ...!,\
71• •
21,)21
5.m
1.6.00It.
J.en2rt!
-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~ LAF WASTE~ SLIVER WASTE~ AND ROVING WASTE, WHETHER OR NOT MANUFACTURED OR OmERWISE
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
Country of Origin
TOTAL QWTA
Total Imports
Sept. 20, 1964, to
Oct. 12. 1964
United Kingdom ••••••••••••
Canada ••••••••••••••••••••
France ••••••••••••••••••••
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium •••.....•..•..•••••
Japan............
. ....
China....... .....
. •...
Egyp t. . . . .
. .••.•......•.
Cuba ••••••••••••••••••••••
Ge rmany •••••••••••••••••••
Italy ..••.....•.•.•..•.•••
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
Established
33-1/3% of
: _ Tot~J._ Quot_a
Imports
Sept. 20, 1964,
to Oct. 12. 1964.
11
1,441,152
239,393
75,807
22,747
14,796
12,853
25,443
7,088
21~263
Other, including the U. S.
5,482,509
239,393
1,599,886
11 Included in total imports, column 2.
l?repa-,:~~i~
the Bureau of Customs.
0-1.370
----
-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 OTIlERWISE
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 QOOTA
Country of Origin
United Kingdom ••••••••••••
Canada. ••••••••••••.••.••••
France ...••.•.•.....•.••..
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland......
• •••••
Belgium.......
• •••••
Japan •.•..••.•......•.•..•
China •••••••••••••••••••••
Eg)'p t ••••.•••.••••••••••••
Cuba ••••••••••••••••••••••
Germany •••••••••••••••••••
Italy ...................••
Total Imports
Sept. 20, 1963, to
: Sepj:.~ 19L1964_ . ___:
11
Tot~l_Quo.t~_:_...!ClS~Rt. 1~ 1~61...
Established :
33-1/3% of:
Imports
Sept. 20, 1963
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
1,087,369
239,690
221,909
19,284
11,249
34,147
33,511
59,000
1,441,152
287,669
75,807
55,151
35,738
25,443
7,088
5,482,509
1,741,897
1,599,886
22,747
14,796
12,853
Other, including the U. S.
~I
1ncluded in total imports, column 2.
~T_p&red
~n
the
Bu~eau
of
Custo~._
342,820
TREASURY DEPAR'OO!2IT
Washington, D. C.
IMMIDIATE RELEASE
THURSDAY, OCTOBER 15, 1964
0-1371
Prel.im1nary data on imports for consumption of cotton am cotton waste chargeabl.e to the quotas established b;y
Presidential Prcclamation No. 2351 of September 5, 1939, as amelded, am as modified by the Tariff Schedules of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the appeDiix to the Tariff Schedules of the
United States. There is no political connotation in the use of outaxled names.)
n
Country ot Origin
EgJpt and Sudan ••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
China ••••••••••••••••••••••
Mezico •••••••••••••••••••••
BJ-asU ••••••••••••••• e' • • • • •
Union ot Sori-et
Socia11at Republics ••••••
Argent~ •••••••••••••••••
·1IHa:1.t1 ••••••••••••••••••••••
:,~or •••••••• _•••••••••••
11
Y
Established Quota
Imports
Country or OryP.n
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
628,215
24,045
159,692
Holduraa ••••••••••••••••••••
Par~ ••••••••••••••••••••
Colombia••••••••••••••••••••
Iraq ••••••••••••••••••••••••
8,883,259
600,000
475,124
!I
~I
g
5,203
2'5f
9,.333
Established Quota
New ~J1Dea••••••••••••••••
British W. Indies •••••••••••
71• .388
Brit.i8h V. Africa. ••••••••••
Other. im1 • U ng the U.s ....
16.00It.
R18er.1a •••••••••••••••••••••
Imports AU8!lJIt. 1. 1964 _ Sept
Stap1e Length
1-J/SW or .,re
1.-5/32" or .,re ani un:ler
1-~/an (T~")
~ IIDIl 1IIIIl..-
~~~~_~.:;r~L-------~.:i~.=.::~.
124
195
2.240
Cotton 1-118" or IIDre
Established Yearlr Quota - 45.656,420 lbs.
______________________
871
British East Africa •••••••••
1D10nesia and NetherlaDis
EJtcept Barbados, Benuia, Jamaica, Trinidad, aDi Tobago.
EJtcept Nigeria ard Ghana.
.
1.-1/" or
752
J 8, J
96/,
Al'ocation
39,590.778
1Jn?2rt.s
39.590.778
1.500.000
9_665
nil M2
1..671• .369
4.
-----------,.~~~~~~~,.,.~.~c
21• .321
5.m
IPMrta
TREASURY DEPAR'1Jmfr
Washington, D. C.
DlmJIATE RELEASE
THURSDAY, OCTOBER 15, 1964
D-1371
Prel.iai.nary data on imports for consumption or cotton am cotton waste chargeable to the quotas establiShed b7
Presidential PN'clamation No. 2.351 of September 5, 19.39, as 8IIleDled, and as modi1'ied b7 the Tariff Schedul.es of the
United States which became effective August .31, 196.3.
(The country designations in this press release are those specified in the appemiix to the Tariff Schedul.es of the
United States. There is no political cormotation in the use of outmded DaIlIes.)
.
Country of Origin
EgJpt and Sudan••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
China ••••••••••••••••••••••
Mexico •••••••••••••••••••••
Brasil •••••••••••••••••••••
Established Quota
l!p!rts
Count.rz of
78.3,816
247,952
2,00.3,48.3
1,.370,791
8,88),259
618,72.3
628,215
24,045
159,692
Honduras ••••••••••••••••••••
Par~ ••••••••••••••••••••
8,88),259
British East Africa•••••••••
lDloneaia aDd BetherlaDle
600,000
Union of Sorlet
475,124
Arg8Dt~ •••••••••••••••••
Haiti ••••••••••••••••••••••
ECaadar ••••••••••••••••••••
Y
Y
5,20.3
2.37
9,.3.3.3
Origin
EIIt.bU IIhecl
Colombia••••••••••••••••••••
Iraq ••••••••••••••••••••••••
y
11_ Otdnea••••••••••••••••
British W. Indies •••••••••••
~I ~•••••••••••••••••••••
4iI Br1t1ab V. J..tr1ca. ••••••••••
other, 1.,w11ng the U.s ....
Imcept Barbadoe, BerIula. Jamaica. Tr1D1.d.ad, and Tobago.
Eltcept Wigena aDd Ghana.
.
cotton l-1Isn or mre
Established IearlI Quota - 45.656.420 lbe.
Ig!orts Auggt. 1. 1964 _ Sspt
Stapl.e Length
or DlDre
1-5/.32" or BDre and UDler
1-.3/sn
1-:J/&n (Taapis)
l.-~.
or ..,re 8IIIl UDder
~_~_ ~L~___
c:&4=2
• •q t
62'=9~9·~~
. . . . CMi
w~~
~a9/'T-T
~-x
u:~~o::>
J 8, J
961,
Al1oation
T-pnrts
39.590.718
.39,590,778
l..,5OO.OOO
9,665
aa::
~~~ ~I ". •
peq°Ttq_~8~
Cjlgeta
752
871
124
195
2.240
7l.J88
21.321
5.m
16.00Ie.
I'P'!!$'
-2COTroN 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 OmERWISE
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:
Country of Origin
United Kingdom ••••••••••••
Canada ••••••••••••••••••••
France •••••.••••••..••••••
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium ••••.•.••••••.•••••
Japan •.•.•••..••.•..••••••
China •••••••••••...••.•••.
Egyp t. . . . .
. .•..•........
Cuba ••••••••••••••••••••••
Ge rmany •••••••••••••••••••
Italy ...•.....•.•.•.....••
Es tablished
TOTAL QllTA
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509
Included in total imports, column 2.
~repared
~n
the Bureau of Customs.
D-1371
Established
33-1/3% of
Totp.l QugJa
Imports
11
Sept. 20, 1963 to Sept. 19. ~
1,087,369
239,690
221,909
19,284
11,249
34,147
33,511
59,000
1,441,152
2fY/,669
75,807
55,151
35,738
25,443
7,088
22,747
14,796
12,853
-
Other, including the U. S.
~I
Total Imports
: Sept. 20, 1963, to
: Sept~ 19J,-1964
1,741,897
1,599,886
342,820
TREASURY DEPARTMENT
Washington, D. C.
D- 13 72
IMMEDIATE hF..Ll:ASE
THURSDA Y,
OCTOBER 15 1964
PRELIMINARY DATA ON IMPORTS FOR CONSL'MPTION or UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDl!.'NTIAL PRCCLAMATION NO. 3257 OF SEPTEMBF.R 22, 1958, AS MODU'lED BY 'J'HE TARP"F SCHEDULES Of 'I'HE
1.JNIT1i;D STATES, WHICH BECAME En'F.CTIVE AUGUST 31, 1963.
PERIOD -
OUAR'l'uu.y QUOTA
IMPORTS -
ITEM 925.01-
Country
of
Production
Ootober
1-
Deoember
31,
1~64
O.~ober 1 - Ootober ~, 1~64 (or as noted)
ITEM
ITEM 925.03-
Leai-bearing ores
and ma teriala
I
I
Umrrought lead azul
lead W'&ste and scrap
I
I
.
:
ITEM 925.04.
~i5.02-
:
Zino-bearing ores and
materials
I
I
:
Umrrought z1no (exoept alloyof zino aDd. zinc dut) aDd.
zinc W'&ste aDd. sera,
Import.
AWitral1a
11,220,000
11,220,000
22,540,000
~42,366
Belgium and
Luxemburg (total)
Bol1rla.
5,040,000
•••
758,~75
15,920,000
6,2b~,323
66,480,000
66,480,000
Italy
Peru
3,32~,446
16,160,000
16,160,000
36,880,000
4,547,534
70,480,000
5,710,126
6,320,000
2,4 05,647
12,880,000
1,622,734
35,120,000
6,618,131
3,760,000
1,300,3 05
R.publio of the Congo
(formerly Belgian Congo)
So. Afrioa
14,880,000
]A,9BO,000
15,760,000
YugoalaTia
All other
6,560,000
oountrlea (total)
.s•• Part 2, Append~ to Tarl~~
••• 1,732,846
SGh.du1ea •
. ••Repub1.10 of South A:fr1oa •
••• z.peP\.
37,840,000
3,600,000
Verloo
"Un.
••• 3,355,805
••• 2,836,221
13,440,000
Canada
7,520,000
&. or
O.~ob.r
12. 1,64.
PIQI:P.A.lU:D XN '1'HII: BUREA.U CD" CUS'.rcalS
6,080,000
•••
5,440,000
.14,460
6,080,000
17,840,000
17,840,000
6,090,000
••• 2,565,70 5
TREASURY DEPARTMENT
Washington, D. C.
D- 1372
~DIA TE hELllSE
THURSDAY ' OCTOBER
15,1964
______
_
P'kELIMINARY DATA ON
IMPORTS FeR CONSl,'MPTICN OF UNMANUFACTURED LEAD AND ZINC CHARGUBLE TO TF.E QUOTAS ESTABLISHED
BY PRESIDl!.NTIAL PRCCLAMATICN NO. 3257 OF SEPTEMBER 22, 1958, AS MODIFIED BY 'rnE TARIIT SCHEDULES Of 'l'HE
DNIT1i;D STATES, WHICH BECAM!: EITJl',CTIVE AUGUST 31, 1963.
OU.AR1'l<:RLY QUOTA PERIOD -
IMPORTS -
ITEM 925.01-
Ootober 1 - Decelllber )1, 1964
o.~ober 1 - October 9, 1964 (er a.s noted)
ITTI.!
ITEM 925.03-
~~5.02-
1
I
Lead-bearing ores
and materials
Cauntly
of
Uuwrought lead ani
lead waste and scrap
IT£M 925.04------~:~---------------------------
ZinG-bearing orea and
materials
I
I
:
Production
Umn-ougbt zino (exoept a.llCJYs
of zinc and. zinc dut) and.
zino waste &Del sera,
&
- :QUiTterly OUota
n.rtlable lead
:QU&rterly QUota
:o:u&rierly QUota
JmpoJ"'ts
Dnti~~_led____ l!DP0rtl~ ZiDC~_0!ltent
l PoundS r---
{ PoUDd8 )
AWltralla
1l,220,OOO
11,220,000
22,540,000
{ BtWias }
:au&rterly
Imports
942,)66
Luxemburg (total)
5,040,000
13,440,000
'":&n.&da
...
758,975
••• 3,355,805
15,920,000
6,2&9,3 2 3
66,4eo,OOO
66,480,000
37,840,000
3,329,446
3,600,000
\4eJdoo
16,160,000
Peru
16,160,000
36,880,000
4,547,531
70,400,000
5,710,126
6,320,000
2,4 05,647
12,880,000
1,622,734
35,120,000
6,618,131
3,760,000
1,300,)05
Bepub110 of the Congo
(fonDerly Belgian Congo)
So. Afrioa
lA.980,OOO
5,.440,000
14,880,000
15,760,000
yugos1aT1a
All other
oountries (total)
6,560,000
-See Part 2, Appendix t~ TAriff
of South Afriaa.
'.Repub~10
···Laperts as or
7,520,000
••• 2,836,221
Italy
~Uu.
Import.
\ rftllU1
Belgium and
HoliT1&.
Qi1jh
Br. 1fel~
Oc~ob_r
12. 19640
••• 1,732,846
Sohe~ules.
6,080,000
•••
14,460
6,080,000
17,840,000
17,840,000
6,000,000
••• 2,565,7°5
TREASURY DEPARTMENT
Washington, D. C.
D - 137 3
IMMEDIATE l'F..LEASE
THURSDAY~ OC~~IDhJR~1tli~ ON
IMPORTS FOR CONSl'MPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESID1'NTIAL PROCLAMATION NO. 3257 OF SEPTEMBF.R 22, 1958, AS MODITIED BY '!'HE TART~'F SCHEDULES Of THE
uNIT)!;}) STATES, WHICH BF.GAME EFFF,CTIVE AUGUST 31, 1963.
OUAR'1"d~LY QUOTA PERIOD -
July 1 - September 30, 1~64
IMPORTS -
July 1 - September 30, 1964
ITEM 925.01-
ITEM 925.04-
ITEM 925.02-
ITEM 925.03-
:
I
Lea4-beariDg orell
and IDateriall1
Country
of
Production
Umrrought lead an4
lead waste and scrap
I
:
I
.I
Zine-bearing orell and
materials
• Umrrought zino (exoept
.I
:
:
a11~11
of zinc aDd zinc dust) aDd
zinc wallte aDd. sera,
orb
AWitralia
11,220,000
1l,220,000
22,540,000
:n, ':>38, 287
Belgium and
Luxemburg (total)
Bolina
5,040,000
5,040,000
Canada
l3,.....w,OOO
7,707,729
15,920,000
15,920,000
66,480,000
66,480,000
Italy
16,160,000
16,160,000
l.I4,980,000
oountries (total)
37,840,000
36,880,000
70,480,000
58,215,643
6,320,000
6,319,064
12,880,000
12,878,871
35,120,000
35,120,000
3,760,000
3,759,761
5,440,000
5,43 8,973
6,080,000
6,080,000
14,880,000
YugoslaTia
All other
37,840,000
36,880,000
Republio of the Congo
(formerly Belgian Congo)
.·Uu. So. Afrioa
7, 52.o,yt)0
3,600,000
Mexioo
Peru
7,520,000
6,560,000
2,866,986
-See Part 2, Appendix to Tariff Sehedulea •
••R.pub~1.c of South Atr1.oa.
PKI:P&:RED XN 'l.'HlC BUJU:A.U
or cos-rcus
15,760,000
15,760,000
6,080,000
6,080,000
17,840,000
17,840,000
TREASURY DEPARTMENT
Washington', D. C.
D-1373
IMMEDIA TE l\ELEASE
THURSDAY-,- OC~~~ru~lJl~ ON
IMPORTS FeR CONSl.,'MPTICN OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDl!.:NTIAL PROCLAMATION NO. 3257 OF SEPTEMBF.R 22, 1958, AS MODITIED BY 'f'HE 'l'ARIIT SCHEDULES or 'I'I:n:
uNIT1i:JJ STATES, WHICH BECAME EITlOCTIVE AUGUST 31, 1963.
OUAR'l''ffiLY QUOTA PERIOD -
July 1 - Septembar 30, 1964
IMPORTS -
July 1 - Septa.ber 30, 1964
ITEM 925.01-
Country
of
Produotion
Lead-bearing orea
and ma teria1s
ITEM 925.04·
ITEM 925.02·
ITEM 925.0)-
Uuwrougbt lead ani
lead ~te and scrap
:
I
I
Zino-bearing oroe and
materials
I
s Umrrought zinc (exoept aJ.1cpys
:
of zinc and zinc clust) aDd
zino wast. and sera,
:
Import.
Autralia
ll,220,OOO
11,220,000
22,540,000
l2, ,38, 287
Belgium and
Luxemburg (total)
P·?l1n&
'Ul8.da
5,040,000
5,040,000
13,440,000
7, 707, 72'j
15,920,000
15,920,000
66.480,000
66,480,000
1:t&1y
7,520,000
7j520,uUO
37,840,000
37,840,000
3,600,000
~"-!xioo
36,880,000
36,880,000
70,400,000
58,215,643
6,320,000
6,)19,064
.
12,880,000
12,878,871
35,120,000
35,120,000
3,760,000
3,759,761
5,440,000
5,4)8,973
6,090,000
6,080,000
16,16Q,000
~ru
16,160,000
R.publio of the Congo
{formerly Belgian Congo)
,·uu.
So. Afrioa
]A, 980 ,(X)()
1.,880,000
yugoslana
A.ll other
oountries (~ot&l)
6,560,000
2,s66,,}s6
-See Part 2, Appendix to Tariff Sohedules •
••Repub11c of South A.frica.
15,760,000
15,760,000
6,080,000
6,080,000
17,840,000
17,840,000
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
THURSDAY, OCTOBER 15,1964
D-1374
The Bureau of Customs has announced the fo11ovring preliminary
figures showing the imports for consumption from January 1, 1964, to
October 3, 1964, inclusive, of commodities under quotas established
pursuant to the Philippine Trade Agreement Revision Act of 1955:
Commodity
..,.,.
:
Established Annual
Quota Quantity
:
,.
··
·
Unit • Imports
••
as of
of
Quantity: October 3, 1961
Buttons ••••••••••••••
680,000
Cigars •••••••••••••••
160,000,000
Number 11,296,304
Coconut oil ••••••••••
358,400,000
Pound
Quota Filled
Cordage ••••••••••••••
6,000,000
Pound
5,403,413
Tobacco ••••••••••••••
5,200,000
Pound
3,709,681
Gross
182,242
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
THURSDAY, OCTOBER 15,1964
D-1374
The Bureau of Customs has announced the follov.ri.ng preliminary
figures showing the imports for consumption from January 1, 1964, to
October 3, 1964, inclusive, of commodities under quotas established
pursuant to the Philippine Trade Agreement Revision Act of 1955:
:
COr.nTlodity
··•
•
Imports
Unit
of
as of
• Quantitl: October 3z 1964
.
:
Established Annual
Quota Quantitl
··
Buttons ••••••••••••••
680,000
Cigars •••••••••••••••
160,000,000
Number 1l,296,304
Coconut oil ••••••••••
358,400,000
Pound
Quota Filled
Cordage ••••••••••••••
6,000,000
Pound
5,403,413
Tobacco ••••••••••••••
5,200,000
Pound
3,709,681
Gross
182,242
-2-
Commodity
··••
·
:
Period and Quantity
Unit:
Imports
:
of:
as or
: Quantitz:October 3. :
Absolute Quotas:
Butter substitutes containing
over 45% of butterfat, and
butter oil •••••••••••••••••••••
Calendar Year
Fibers of cotton processed
but not spun•••••••••••••••••••
12 DIOs. from
Sept. 11, 1963
1,200,000 PoUDi
Quota Fillac
1,000 Pouni
12 mos. from
Sept. 11, 1964
Peanuts, shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
butter) ••••••••••••••••••••••••
11 Imports
D-1375
through October 9, 1964.
12
1,000 Pound
DIOS. from
August 1, 1964
1,709,000 Pound
788,69~
TREASURY DEPAR'1MENT
Washington
IMMFDIATE RELEASE
iHURSDAY, OCTOBER 15,1964
D-1375
The Bureau of Customs announced today preliminary figures on imports tor consumption of the tollowing commodities trom the beginning of the respective quota
periods through October 3, 1964:
Commodity
••
·••
Period and Quantity
.:• Unit
of
••
••
Imports
88 ot
; Quantity; October ).
11
Tarift-Rate Quotas:
Cream, fresh or sour •••••••••••••
Calendar Year
1,500,000 Gallon
677,493
Whole Milk, fresh or sour ••••••••
Calendar Year
3,000,000 Gallon
51
Cattle, 700 Ibs. or more each
(other than dairy cows) ••••••••
July 1, 1964Sept. 30, 1964
Oct. 1, 1964Dec. 31, 1964
120,000 Head
18,336
120,000 Head
1,329
Cattle less than 200 Ibs. each •••
12 mos. trom
April 1, 1964
200,000 Head
52,12'
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosetish •••••••
Calendar Year
24,861,670 Pound
21,797,915
Tuna Fish ••••••••••••••••••••••••
Calendar Year
&:J, 911, 870 Pound
31,894,583
12 mos. trom
Sept. 15, 1963
12 mos. trom
Sept. 15, 1964
114,000,000 Pound
45,000,000 Pound
l14, 000, 000 Pound
45,000,000 Pound
73,808,110
Quota F1l.1ei
90,000
3,)06,675
White or Irish potatoes:
Certified seed •••••••••••••••••
Other ••••••••••••••••••••••••••
Certitied seed •••••••••••••••••
Other ••••••••••••••••••••••••••
Knives, forks, and spoons with
Nov. 1, 1963stainless steel handles •••••••• Oct. 31, 1964
69,000,000 Pieces
Quota Filled
-
TREASURY DEPAR'DmiT
Washington
MmIATE RELEASE
D-1375
HURSDAY, OCTOBER 15,1964
The Bureau of Customs announced todq prel imi nary figures on imports for con)llptlon of the following commodities from the beginning of the respective quota
riods thrOugh October 3, 1964:
COJllllM)dity
••
••
••
Imports
••
••
of
as of
;Quantity; October 3. 1964
: Unit
Period and Quantity
••
taitf-Rate Quotas:
eam, fresh or sour •••••••••••••
Calendar Year
1,500,000
Gallon
677,493
ole Hilk, fresh or sour ••••••••
Calendar Year
3,000,000
Gallon
51
ttle, 700 Ibs. or mre each
(other than dairy cows) ••••••••
July 1, 1964Sept. 30, 1964
Oct. 1, 1964Dec. 3J., 1964
120,000 Head
18,336
120,000 Head
1,329
les8 than 200 Ibs. each •••
12 JII) s. from
AprU 1, 1964
200,000
Head
52,126
!h, fresh or frozen, fUleted,
!tc., cod, haddock, hake, pollock, cusk, and rosefish •••••••
Calendar Year
24,861,670 Pourxi
21,797,915
\1& Fish ••••••••••••••••••••••••
Calendar Year
&:>,9ll,870 Pound
31,894,583
lte or Irish potatoes:
:ertifled seed •••••••••••••••••
lther ••••••••••••••••••••••••••
lertlt1ed seed •••••••••••••••••
,'ther ••••••••••••••••••••••••••
12 ms. from
Sept. 15, 1963
12 mos. from
Sept. 15, 1964
ves, forks, and spoons with
Itainless steel handles ••••••••
Hov. 1, 1963Oct. 31, 1964
~tle
·114,000,000
Pourxi
45,000,000 Pourxi
JJ.4,OOO,OOO Pound
45,000,000 Pound
69,000,000 Pieces
73,SOS,1l0
Quota Filled
90,000
3,306,675
Quota Filled
-2: Un!t :
Imports:
of:
as of
:Quantitl:Octobar ). ~
••
••
••
Absolute Quotas:
Butter substitutes containing
over 45% of butterfat, and
butter 011 •••••••••••••••••••••
Fibers of cotton processed
but not ~ •••••••••••••••••••
Peanuts, shelled. or not shelled,
blanched, or otherwise prepared
or preserved. (except peanut
butter) ••••••••••••••••••••••••
!I
Imports through October 9, 1964.
D-1375
Calendar Year
1,200,000 PoUDd
Quota Filled
1,000 PoUDi
530
12 mos. from
Sept. 11, 1963
12 mos. from
Sept. 11, 1964
1,000 PolllXi
12 mos. from
August 1, 1964
1,709,000 Pound
1.
788,695
- 3 -
t.Ile sale or other dlspor:ition of Treasury bills does not have any special treB:tment,
f;l'lch, under the Internal Revenue Code of 1954.
as
The bills are subject to estate, inher-
:f.tonce, gift or other excise taxes, whether Federal or State, but are exempt from all
to..."Co.t.ion n0l01 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 d:i.scount 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 here-,
•
under are sold 5_s not considered to accrue until such bills are sold, redeemed or othel'
wise disposed of, and such bills are excluded from consideration as capital assets.
Ac:cordinely, the mmer of Treasury bi lIs (other than life insurance companies) issued
he;rcunder need include in his income tax return only the difference between the price
paid for such bills, wether on original issue or on subsequent pruchase I and the
am~
actually received either upon sale or redemption at maturity during the taxable year
for l.fuich 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.
the circQlar may be obtained from any Federal Reserve Bank or Branch.
Copies of
- 2 -
Bankine institutions generally may submit tenders for account of customers pro-
!ed the names of the customers are set forth in such tenders.
Others than banking
Ititutions will not be permitted to submit tenders except for their own e.ccount.
iders will be received ,rl.thout deponit. from incorporated banks and trust companies
l from responsible and recognized denlers in investment securities.
Tenders from
lers must be accompanied by payment of 2 percent of the face amount of Treasury bills
iUed for, unless the tenders are accompanied by an express guaranty of payment by an
:orporated bank or trust company.
All bidders are required to agree not to purchase or to sell, or to make any
reements wi th re~ct to the purchase or sale or other disposition of any bills of
ioDal issue at a specific rate or price ') (~vJ.ni)
F u n t i l after one-thirty p.m., Itaster~time, TueSdaY~~Ober 20, 196.4.
im~diately
ks
after the closing hour, tenders will be opened at the Federal Reserve
and Branches, following which public announcement will be made by the Treasury
lartment of the amount and price range of accepted bids.
.l be advised of the acceptance or rejection thereof.
I~ssly
Those submitting tenders
The Secretary of the Treasury
reserves the right to accept or reject any or all tenders, in whole or in part,
: his action in any such respect shall be final.
~titive
tenders for
$ 200,000
"'(~l:e-}
Subject to these reservations, non-
or less without stated price from anyone
der lrill be accepted in full at the average price (in three decimals) of accepted
tpetitive bids.
Payment of accepted tenders at the prj.ces offered must be made or
iPleted at the Federal Reserve Bank in cash or other inunediately available funds on
;:,ober 26, 1964
ermi tted
not more than 50 ercent of the amount ot:.
lI1ake payment by credit in its Tree.sury tax and loan account for reasury bills allotted
.
.
{.:~.:~>=
it for itself and its customers up to eny amount for lihich it shall be qualified in
ess of existine dcposits when so notified by the Federal Reserve Bank of its District.
The income derived from Treasury bills, "mether interest or gain from the sale
other disposition of the bills, does not have any exemption, as such, and loss from
1 1
.......
TREASURY DEPARTHENT
Hashington
FOR DvlHEDIATE RELEASE, Zl~GG:~;R;;:nS'l';
October 14, 1964
~~~~;Qay;=eQtgbg~=l~;=l;e~;==
TREASURY OFFERS ADDITIONAL $1.5 BILLION IN MARCH TAX BILLS
The Treasury Department, by this public notice, invites tenders for $1,500,000,OOC
or thereabouts, of 147-day Treasury bills (to maturity date), to be issued October 26,
1964, on a discount basis under competitive and noncompetitive bidding as hereinafter
provided.
The bills of this series will be designated Tax Anticipation Series and
represent an additional amount of bills dated September 2, 1964, to mature March 22,
1965, originally issued in the amount of $1,000,965,000.
bills will be freely interchangeable.
_iC)i,wn,,*
f 'l'hey
The additional and original
~v:l.ll be accepted at face value in
March 15, 1965
, and to the extent~
-{6~. are not presented for this purpose the face amount of these bills will be pa:yable with.
po.ymen'&
01"
lncome
out interest at maturity.
1965
,income
taxes due on
these bills in payment of ~
~
taxes have the privilege of surrendering them to any
Ta.xpayers desiri.llB to
~
app~
Federal Reserve Bank or Drench or to the Office of the Treasurer of the United statea,
Hashinc;ton, not more than fifteen days before
March 15, 1965, and receiving receipts
-{EHtherefor shm-ril16 the face anount of the bills so surrendered.
These receipts m9¥ be
SUbl:U.tted in lieu of the bills on or belore
March 15 z 1965 , to the District Directl
-t~1of Internal Revenue for the District in 11hich such taxes are payable. The bills will 1
iGsued in bearer form on~, end in denominations of $1,000, $5,000, $10,000, $50,000,
$100,000, ;>500,000 and $1,000,000 (maturity value).
Tenders ~-T1ll be received at Federal Reserve Banlco and Dranches up to the closiDB
Daylight Saving
hour, one-thirty p.m., Eastern~ time, Tuesday, October 20, 1964 • Tenders~·
-flGt-
not be received at the Treasury Department, Hashington.
Each tender must be for 'an
.,
ell:
nrultiplc of :~1,000, and in the case of competitive tenders the price offered must be
CJ:prezGcd on the bnsis of 100, 1-lith not more than three decimals, e. g., 99.925.
Fractions
nlL'y
not be used.
It is urged that tenders be made on the printed forms and
fonvarded in the special envelopes "t-lhich "Hill be supplied by Federal Reserve Banks or
Dranches on application therefor.
TREASURY DEPARTMENT
October 14, 1964
?OR IMMEDIATE RELEASE
TREASURY OFFERS ADDITIONAL $1.5 BILLION
IN MARCH TAX BILLS
The Treasury Department, by this public notice, invites tenders
$1,500,000,000,
or thereabouts, of 147 -day Treasury bills (to
Eor
'Ilaturity date), to be issued October 26, 1964, on a discount basis
;nder competitive and noncompetitive bidding as hereinafter provided.
fhe bills of this series will be designated Tax Anticipation Series
.md represent an additional amount of bills dated September 2,1964, to
"Ilature March 22, 1965, originally issued in the amount of
!~1,OOO,965,000.
The additional and original bills will be freely
Lnterchangeable. They will be accepted at face value in payment of
income taxes due on March 15, 1965, and to the extent they are not
)tesented for this purpose the face amount of the se bills will be
~yable without interest at maturity.
Taxpayers desiring to apply
~hese bills in payment of March 15, 1965, income taxes have the
:)rivilege of surrendering them to any Federal Reserve Bank or Branch
;)r to the Office of the Treasurer of the United States, Washington,
'lot more than fifteen days before March 15, 1965, and receiving
ceceipts therefor showing the face amount of the bills so surrendered.
rhese receipts may be submit'ted in lieu of the bills on or before
~arch 15, 1965, to the District Director of Internal Revenue for the
)istrict in which such taxes are payable. The bills will be issued
in bearer form only, and in denominations of $1,000, $5,000, $10,000,
~50,OOO, $100,000, $500,000 and $1,000,000 (maturity value).
t
Tenders will be received at Federal Reserve Banks and Branches
Ip to the closing hour, one-thirty p.m., Eastern Daylight Saving time,
fuesday, October 20, 1964. Tenders will not be received at the
rreasury Cepartment, Washington. Each tender mus t be for an even
1ultiple of $1,000, and in the case of competitive tenders the price
,)ffered mus t be expre ssed on the bas is of 100, wi th not more than
:hree decimals, e. g., 99.925. Fractions may not be used. It is
~rged that tenders be made on the printed forms and forwarded in the
lpecial envelopes which will be supplied by Federal Reserve Banks or
3ranches on application therefor.
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
1-1376
- 2 -
submit tenders except for their own account. Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank
or trust company.
All bidders are required to agree not to purchase or to sell, or
to make any agreements with respect to the purchase or sale or other
disposition of any bills of this additional issue at a specific rate
or price, until after one-thirty p.m., Eastern Daylight Saving time,
Tuesday, October 20, 1964.
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, ~
whole or in part, and his action in any such respect shall be final.
Subject to these reservations, non-competitive tenders for $200,000
or 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 Bank in cash or other immediately
available funds on October 26, 1964, provided, however, any
qualified depositary will be permitted to make payment by credit in
its Treasury tax and loan account for not more than 50 percent of the
amount of Treasury bills allotted to it for itself and its customers
up to any amount for which it shall be qualified in excess of existing
deposits when so notified by the Federal Reserve Bank of its District.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State,
but are exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions
of the United States, or by any local taxing authority. For purposes
of taxation the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454 (b) and 1221 (5) of the Internal Revenue Code of
1954 the amount of discount at which bills issued hereunder are sold
is not considered to accrue until such bills are sold , redeemed or
otherwise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills
- 3 (other than life insurance companies) issued hereunder need include
In his income tax return only the difference between the price
)aid for such bills, whe ther on original issue or on subsequent
)Urchase, and the amount actually received either upon sale or
~edemption at maturity during the taxable year for which the return
ls made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this
lot ice , prescribe the terms of the Treasury bills and govern the
:onditions of the ir issue. Copies of the circular may be ob tained
from any Federal Reserve Bank or Branch.
000
- 3 -
1954.
Mr. Trued, a member of Phi Beta Kappa, is an honors
graduate of the University of Oregon and has received a number
of fellowship awards.
Mr. Trued is the author of a number of published works,
including a monograph, Post-War Bilateral Payments Agreements,
and an article in the October 1957 Journal of Political Economy,
"Interest Arbitrage, Exchange Rates, and Gold and the Dollar
Reserves. "
Mr. Trued, 42, was born in Ceresco, Nebraska.
He is
married to the former Josephine Schafer of Perry, Kansas.
They
have a son Michael, age 19, and a daughter Sally, age 15, and
maintain their residence in Ridgewood, New Jersey.
- 2 -
Mr. Trued carne to the Treasury from the position as
the
Assistant Vice President of/Federal Reserve Bank of New York.
He had joined the Federal Bank's Research Department in 1954
and held positions in that institution's public information and
foreign departments.
While on leave of absence from the Bank, he served as a
financial specialist with an advisory group to the Government
of Viet Nam.
He has also lectured on Economics at the
University of Virginia and taught at Rutgers University, the
City College of New York, and New York University.
He joined the United States Navy in 1942 and was cornmissione(
a Lieutenant in the U. S. Marine Corps in 1943.
Mr. Trued is
now a Major in the U. S. Marine Corps Reserve.
Mr. Trued attended public schools in Tribune, Kansas.
received his M.A. degree in Foreign Affairs in 1951 from the
University of Virginia and his Ph.D. degree in Economics in
He
MERLYN N. TRUED NAMED ACTING
ASSISTANT SECRETARY OF THE TREASURY
Treasury Secretary Douglas Dillon today named Merlyn N. Trued
as Acting Assistant Secretary of the Treasury.
Mr. Trued's appointment follows the resignation of Assistant
Secretary John C. Bullitt, effective today, who was recently
appointed by Governor Richard J. Hughes of New Jersey to aid that
State's Anti-Poverty Program.
Mr. Trued has served as Deputy since January 28, 1963, in
which capacity he aided in carrying out the Department's
responsibilities in international financial and monetary affairs.
He has been principally concerned with operations in the foreign
exchange and gold markets and the U. S. balance of payments.
He
has also been concerned with activities of the so-call "Group
of Ten" principal nations in its continuing study of international
liquidity and related problems.
In this capacity he has worked
closely with Robert V. Roosa, Under Secretary for Monetary Affairs
TREASURY DEPARTMENT
(
FOR IMMEDIATE RELEASE
MERLYN N. TRUED NAMED ACTING
ASSISTANT SECRETARY OF THE TREASURY
Treasury Secretary Douglas Dillon today named Merlyn N. Trued
as Acting Assistant Secretary of the Treasury.
Mr. Trued's appointment follows the resignation of
Assistant Secretary John C. Bullitt, effective today, who was
• recently appointed by Governor Richard J. Hughes of New Jersey
to aid that State's Anti-Poverty Program.
Mr. Trued has served as Deputy since January 28, 1963, in
which capacity he aided in carrying out the Department's
responsibilities in international financial and monetary affairs.
: He has been principally concerned with operations in the foreign
exchange and gold markets and the U. S. balance of payments. He
has also been concerned with activities of the so-called
"Group of Ten" principal nations in its continuing study of
international liquidity and related problems. In this capacity he
has worked closely with Robert V. Roosa, Under Secretary for
· Monetary Affairs.
Mr. Trued came to the Treasury from the position as
Assistant Vice President of the Federal Reserve Bank of New York.
· He had joined the Federal Bank's Research Department in 1954 and
held positions in that institution's public information and
foreign departments.
While on leave of absence from the Bank, he served as a
financial specialist with an advisory group to the Government of
Viet Nam. He has also lectured on Economics at the University
of Virginia and taught at Rutgers University, the City College of
New York, and New York University.
He joined the United States Navy in 1942 and was
commissioned a Lieutenant in the U. S. Marine Corps in 1943.
Mr. Trued is now a Maj or in the U. S. Marine Corps Reserve.
D-1377
- 2 -
Mr. Trued attended public schools in Tribune, Kansas. He
received his M.A. degree in Foreign Affairs in 1951 from the
University of Virginia and his Ph.D. degree in Economics in
1954. Mr. Trued, a member of Phi Beta Kappa, is an honor
graduate of the University of Oregon and has received a number
of fellowship awards.
Mr. Trued is the author of a number of published works,
including a monograph, Post-War Bilateral Payments Agreements,
and an article in the October 1957 Journal of Political Economy,
"Interest Arbitrage, Exchange Rates, and Gold and the Dollar
Reserves. "
Mr. Trued, 42, was born in Ceresco, Nebraska. He is
married to the former Josephine Schafer of Perry, Kansas. They
have a son Michael, age 19, and a daughter Sally, age 15, and
maintain their residence in Ridgewood, New Jersey.
000
Financing of Deficit on Regu1ar Transactions
(~11ions of do11ars)
Fiscal Year
126J
1962-63
12 6!t
1963-6L.
1961
1960-61
1962
1961-62
-1,759
-1,076
-697
-207
186
368
-428
56
-286
-110
-301
-323
Foreign private holders
481
-789
-141
-638
Foreign official holders
-748
-764
-1,347
43
International & regional institutional
holders exc1. IMF
-487
-537
111
238
-612
-295
-1.831
-909
-3,225
-3,203
-4,634
-1,740
Decrease (-) in monetary reserve assets
Gold
Convertible currencies
IMF positions
Increase (-) in liquid liabilities
Special government receipts (-)
Deficit on regular transactions
Source:
Survey of Current Business, U.S. Department of Commerce.
October 8, 1964
- 6 -
that this asset would necessarily be a supplement to the
use of existing reserve currencies, not a substitute for
them.
Thus there will continue to be a crucial role and
responsibility for the dollar, and for the pound sterling -as national reserve currencies, as currencies used through
the multilateral arrangements of the EMF, and as currencies
engaged in various bilateral credit arrangements with other
leading countries Which are approaching the status of parareserve currencies.
- 5 -
taken in recent years to buttress the gold-exchange
standard against speculative attack and to improve the workugs
of the international monetary system.
He referred briefly to
the $6 billion General Arrangements to Borrow, the $2
billl~
network of central bank and government swap arrangements, the
issuance of new types of government securities tailored to
international requirements, and the proposed increase in DW
quotas.
Mr. Roosa said that he had just completid a series
of three scheduled public speeches in an effort toward
some
further elaboration of these points.
9.
Mr. Roosa concluded by saying that, in addition to
reserves, as such, specialized credit facilities have since
World War II, and particularly over the past five years,
came to play a very
~portant
part in the total of all
international liquidity arrangements.
Much of the answer
to world liquidity needs in the future might indeed prove to
lie in the field of improving and expanding multilateral
credit instruments, and the impending increase in IMF quotas
is a very significant evidence of that potentiality.
When the nations of the world should devise a new
If and
internatl~l
reserve asset to give further assurance that international
liquidity would remain ample, there is general recognition
- 4 -
7.
Historically, and today, the principal reserve
currencies are currencies of countries best able to mobilize
large sums of capital.
The connection appears to be two-fold.
On the one hand, foreign borrowers seek funds in the capital
markets of the reserve currency country, frequently leaving
the proceeds of the loans on deposit until such
t~e
as they
are used; both the liabilities and the assets of the reserve
currency country are accordingly increased.
Secondly, foreign-
ers with excess capital, finding little opportunity to invest
that capital domestically because of inadequate capital markets,
may place their funds in the reserve currency center Where the
choice of investments is broad, varied and highly liquid.
The
problem in looking ahead to the possibility that the world may
want to create same additional method for supplying reserve
assets, is how to do that While also assuring the facilities
that have thus far been needed as corollaries of the reserve
currencies.
That is, can both governmental and private holders
look to a capital market which, in effect, services these new
assets?
8.
Mr. Roosa said that, partly because they are already
working so well, there was probably inadequate public understanding of the full significance of measures which had been
- 3 -
currencies and the dollar and then maintaining that parity.
It is essentially the firm link between gold and dollars
that keeps the world's currencies on What is now called the
gold-exchange standard.
6.
In the last ten years world reserves of gold and
foreign exchange -- that is internationally usable assets
in these forms held by monetary authorities -- have increased
by nearly $14 billion.
Of this, new gold production has
supplied some $6 billion While foreign exchange, largely dollars,
has accounted for about $8 billion.
The supply of dollars to
the rest of the world has been, in part, a reflection of
United States deficits.
Paradoxically enough, United States
deficits have to a large extent been a result of supplying
dollars to the outside world in response to foreign needs for
capital
to finance a growing volume of trade, to sttmulate
economic development.
Even to highly industrialized countries
there has been a large flow of American capital in direct and
portfolio investment to take advantage of economic opportunities.
In part, this latter flow of capital reflects the in-
adequacy of the capital market structure in many countries to
mobilize domestic savings in order to meet domestic requirements o
- 2 currency.
The pound sterling once occupied this position.
The French franc is used as a reserve currency by same
countries closely associated with France.
4.
Mr. Roosa said that the establishment of a currency
as a reserve currency was an evolutionary process.
The first
stage was for the currency to be extensively used in trade
and commerce and in financial transactions so that it was
widely accepted and freely passed from hand to hand in the
commercial world.
Once a currency became widely used in
world market places, central banks might use it as a convenient instrument for market intervention to stabilize the
value of the domestic currency.
When central banks became
prepared to hold not only working balances of the currency
but to accumulate the currency and to regard it as a reserve
asset, the currency became a "reserve currency."
5.
In the international sphere, gold continues to be
regarded as the ultimate form of reserve asset even though
most countries no longer link their domestic currencies to
gold.
The United States is the only country mich stands
ready to buy and sell gold at a fixed price.
Other countries
make the linkage only by setting a parity between their
FOR RELEASE
A~ J.J;.~
DELiVERY
125
SUMMARY OF REMARKS BY mE HONORABLE ROBERT V. R~
UNDER SECRETARY OF 'mE TREASURY FOR MONETARY AFFA IRS,
AT mE MEETING OF THE BUS INESS CDUNC IL
AT HOTS PRIN~, VIRGINIA
FRIDAY, oCTOBER 16, 1964
The Dollar and the Pound as Reserve Currencies
1.
Mr. Roosa said that Secretary Dillon and French
Minister of Finance Giscard d'Estaing had, through their
statements in Tokyo, in effect invited public participation
in further consideration of the question whether same new
type of international reserve asset would be required at
some time in the future and, if so, what the nature of this
asset should be.
2.
Intelligent participation in that debate required
full appreciation of the strengths and weaknesses of the
existing gold-exchange system.
3.
The gold-exchange system had developed gradually in
response to the fact that world gold production was not able
to keep pace with the world's requirements for a medium of
exchange and a store of value.
Even while the world monetary
system went under the label of "gold standard" many countries
held a portion of their reserves in the currencies of nations
which offered free convertibility into gold.
Since World
War II the United States dollar has been the principal reserve
-
,(It
RELEASE AFTER DELIVERY
SUMMARY OF REMARKS BY THE HONORABLE ROBERT V. ROCEA
UNDER SECRETARY OF 'lllE TREASURY FOR MONETARY AFFA IRS ,
AT 'lllE MEETING OF 'mE BUSINESS COUNCIL
AT HOT SPRINc.E, VIRGINIA
FRIMY, OCTOBER 16, 1964
The Dollar and the Pound as Reserve Currencies
1.
Mr. Roosa said that Secretary Dillon and French
Minister of Finance Giscard d'Estaing had, through their
statements in Tokyo, in effect invited public participation
in further consideration of the question whether some new
type of international reserve asset would be required at
some time in the future and, if so, what the nature of this
asset should be.
2.
Intelligent participation in that debate required
full appreciation of the strengths and weaknesses of the
existing gold-exchange system o
3.
The gold-exchange system had developed gradually in
response to the fact that world gold production was not able
to keep pace with the world's requirements for a medium of
exchange and a store of value.
Even While the world monetary
system went under the label of "gold standard" many countries
held a portion of their reserves in the currencies of nations
which offered free convertibility into gold.
Since World
War II the United States dollar has been the principal reserve
- 2 -
currency.
The pound sterling once occupied this position.
The French franc is used as a reserve currency by some
countries closely associated with France.
4.
Mro Roosa said that the establishment of a currency
as a reserve currency was an evolutionary process.
The first
stage was for the currency to be extensively used in trade
and commerce and in financial transactions so that it was
widely accepted and freely passed fram hand to hand in the
commercial world.
Once a currency became widely 'used in
world market places, central banks might use it as a convenient instrument for market intervention to stabilize the
value of the domestic currency.
When central banks became
prepared to hold not only working balances of the currency
but to accumulate the currency and to regard it as a reserve
asset, the currency became a "reserve currency."
5.
In the international sphere, gold continues to be
regarded as the ultimate form of reserve asset even though
most countries no longer link their domestic currencies to
gold.
The United States is the only country which stands
ready to buy and sell gold at a fixed price.
Other countries
make the linkage only by setting a parity between their
- 3 -
currencies and the dollar and then maintaining that parity.
It is essentially the firm link between gold and dollars
that keeps the world's currencies on What is now called the
gold-exchange standard.
6.
In the last ten years world reserves of gold and
foreign exchange -- that is internationally usable assets
in these forms held by monetary authorities -- have increased
by nearly $14 billion.
Of this, new gold production has
supplied some $6 billion While foreign exchange, largely dollars,
has accounted for about $8 billion.
The supply of dollars to
the rest of the world has been, in part, a reflection of
United States deficits.
Paradoxically enough, United States
deficits have to a large extent been a. result of supplying
dollars to the outside world in response to foreign needs for
capital
to finance a growing volume of trade, to sttmulate
economic development.
Even to highly industrialized countries
there has been a large flow of American capital in direct and
portfolio investment to take advantage of economic opportunities.
In part, this latter flow of capital reflects the in-
adequacy of the capital market structure in many countries to
mobilize domestic savings in order to meet domestic requirements o
- 4 7.
Historically, and today, the principal reserve
currencies are currencies of countries best able to mobilize
large sums of capital.
The connection appears to be two-fold.
On the one hand, foreign borrowers seek funds in the capital
markets of the reserve currency country, frequently leaving
the proceeds of the loans on deposit until such
t~e
as they
are used; both the liabilities and the assets of the reserve
currency country are accordingly increased.
Secondly, foreign-
ers with excess capital, finding little opportunity to invest
that capital domestically because of inadequate capital markets
may place their funds in the reserve currency center Where the
choice of investments is broad, varied and highly liquid.
The
problem in looking ahead to the possibility that the world may
want to create same additional method for supplying reserve
assets, is how to do that While also assuring the facilities
that have thus far been needed as corollaries of the reserve
currencies.
That is, can both governmental and private holders
look to a capital market Which, in effect, services these new
assets?
8.
Mr. Roosa said that, partly because they are already
working so well, there was probably inadequate public understanding of the full significance of measures Which had been
- 5 -
taken in recent years to buttress the gold-exchange
standard against speculative attack and to tmprove the workings
of the international monetary system.
He referred briefly to
the $6 billion General Arrangements to Borrow, the $2 billion
network of central bank and government swap arrangements, the
issuance of new types of government securities tailored to
international requirements, and the proposed increase in
quotas.
]MF
Mr. Roosa said that he had just completed a series
of three scheduled public speeches in an effort toward
some
further elaboration of these points.
9.
Mr. Roosa concluded by saying that, in addition to
reserves, as such, specialized credit facilities have since
World War II, and particularly over the past five years,
came to play a very tmportant part in -the total of all
international liquidity arrangements.
Much· of the answer
to world liquidity needs in the future might indeed prove to
lie in the field of tmproving and expanding multilateral
credit instruments, and the tmpending increase in IMF quotas
is a very significant evidence of that potentiality.
If and
When the nations of the world should devise a new international
reserve asset to give further assurance that international
liquidity would remain ample, there is general recognition
- 6 that this asset would necessarily be a supplement to the
use of existing reserve currencies, not a substitute for
them.
Thus there will continue to be a crucial role and
responsibility for the dollar, and for the pound sterling
as national reserve currencies, as currencies used through
the multilateral arrangements of the EMF, and as currencies
engaged in variOus bilateral credit arrangements with other
leading countries which are approaching the status of parareserve currencies.
Financing
o~
on Regu1ar Transactions
(Nrr11ions of do11ars)
De~icit
1961
1960-61
Fiscal Year
1962
126J
1961-62
1962-63
-1,759
-1,076
-697
-207
186
368
-428
56
-286
-110
-301
-323
Foreign private holders
481
-789
-141
-638
Foreign official holders
-748
-764
-1,347
43
International & regional institutional
holders excl. IMF
-487
-537
111
238
_-612
-295
-1.831
-909
-3,225
-3,203
-4,634
-1,740
126~
1963-64
Decrease (-) in monetary reserve assets
Gold
Convertible currencies
IMF positions
Increase (-) in liquid liabilities
Special government receipts (-)
Deficit on regular transactions
Source:
Survey of Current Business, U.S. Department of Commerce.
October 8, 1964
· "'··1
,
\
"'--
OFFICE OF THE SECRETARY OF THE TREASURY
.
I
.j--~
WASHINGTON
October l'l, 1964
Dear
.....
H~
~'.
}:a tzenbacrt :
Since the President has assigned the Federal Bureau of Investibaticn the responsil:ility of cor.ducting an investigation concerning Walter
'/! 0 .Jenkir.s, I want to infonn you tt:at on April 6, 1961, tbe U0 S.
Secret Sel"l'ice; in connection wi t..~ a rm.:.tine WM.te House request for
the issuar.ce of a VIhite House pass to Hro ...Tenkins, requested criminal
and subversive file checks from the FBIo
On .April 18, 1961, the Secret Service received a one-line form
report fror: the FBI givinG t.'1e resu.l ts of its criminal file search o This
rEport s:ho?7ed that on January 16, 1959, tilO FBI received the fingerprints
of V~al ter 'Wilson Jenkins from the "District of Colunbia polic:e on a charge
of "inv Slip personlt (inv€stieation s-..:.spicious pereo:1o) No disposition of
tte charge was sho~~, and there was no f~~her indication of the nature
of the chargeo
On April 19, 1961, the FBI report on its subversive file cheek
1':'as received It consisted of a 1958 FBI background invEstigation of Mr.
Jenkins v:rhich disclosed no derogatory informationo The Secret Service
l;ad also been info~ed by the Yhite House that Mro Jenkins had a current
Top Secret cl~aranceo
On the basis of the background invesb.eaticn and the a.ctive
securl-cy c16~rance, )\':r. ,Jenkins was issued a '[":ni te House pa.:::s o The then
he~d of the Protective Research Section of the Secret Service, which has
the r-esponisbi1i ty for issuing 'VJhi te House passes, did not evaluate the
FBI criminal report as inv(;l ving a serious matter. I have been informed
ttat it was not checked further 'wi th the Distrie"c of Columbia authorities,·
nor 178re any higher officers of the Secret Service, or any one else inform£
of the rePOr-to Spacifically, it'll!as not brought to the attention of a:ny
member of the Vlhi te Holtse staff, the then Vice President, or any member
of his staffo
Sincerely,
Douglas Dillon
~.~ro Nicholas deBo Katzenbach"
Actin£"; Attorney General,
":ashir:gton, Do Co
•
'.:..... :-.
THE SECRETARY OF THE TREASURY
:: .'.: <:
WASHINGTON
October 17, 1964
Dear Mr. Ka tzenbach:
Since the President has assigned the Federal Bureau of
Investigation the responsibility of conducting an investigation
concerning Walter W. Jenkins, I want to inform you that on
April 6, 1961, the U. S. Secret Service, in connection with a
routine White House request for the issuance of a White House pass
to Mr. Jenkins, requested criminal and subversive file checks from
the FBI.
On April 18, 1961, the Secret Service received a one-line form
report from the FBI giving the results of its criminal file search.
This report showed that on January 16, 1959, the FBI received the
fingerprints of Walter Wilson Jenkins from the District of
Columbia police on a charge of "inv sup person" (investigation
suspicious person.) No disposition of the charge was shown, and
there was no further indication of the nature of the charge.
On April 19, 1961, the FBI report on its subversive file check
was received. It consisted of a 1958 FBI background investigation
of Mr. Jenkins which disclosed no derogatory information. The
Secret Service had also been informed by the White House that
Mr. Jenkins had a current Top Secret clearance.
On the basis of the background investigation and the active
security clearance, Mr. Jenkins was issued a White House pass.
The then head of the Protective Research Section of the Secret
Service, which has the responsibility for issuing White House passes,
did not evaluate the FBI criminal report as involving a serious
matter. I have been informed that it was not checked further with
the District of Columbia authorities, nor were any higher officers
of the Secret Service, or anyone else informed of the report.
Specificially, it was not brought to the attention of any member
of the White House staff, the then Vice President, or any member
of his staff.
Sincerely,
Douglas Dillon
Mr. Nicholas deB. Katzenbach
Acting Attorney General
Washington, D. C.
,..r
f
/
/
J
drive towar4 a full balance in our international
~'
payments. ~ rising profitability of U.S.
~
investmentll)th~~~;:rides
we are making in improvI
I'
ing productivity, and coftGiAl1ed
l1
~11iey
~g"t &Q PiF;i.~Q
provide a solid base for further
improvement.
But
,r~tL;""""(,
~8.C~,
unrelenting effort,
both by the private economy and by the Government, will be necessary to capitalize on this
potential.
- 5 -
first announced.
Also, with the market now
smoothly adjusted to the existence of this
tax, we see no evidence there will be any big
bulge in new foreign issues following the final
enactment of the law.
* * * * *
Another important element in our payments
situation, but one only partly reflected in the
figures so far, is the program announced in July
1963 for substantial further reductions of approximately $1 billion in the Government's own payments
abroad.
Our results through last June already
reflect a reduction of about $500 million from the
,v7
calendar 1962 level, although the full effects
from this program are not expected until next year.
~~ ('?t "--->
~
~
~
~
* *
* *
*
These striking gains in reducing our balance-
of-payments deficit, accomplished in the space of
a little more than a year since the Presidential
message of July 1963, have considerably shortened
the distance still remaining to be covered in our
*****
The world-wide investment position of the United Stat••
I'
hasr;~~:;tnued
to improve. /
I'
.b-••
i¥i..._••••
t..:-~ la
Iso.
'a-a'a:w--I'e.o"'. abou'-~..,..~fti;U_, • ...,;~ eM" tJf lH-• ...,.n •."\.
.
""""
'''/
.~
6iVe.r._tbnel..f. ..P.\ dt*:~~ 10 ,.... _
••_-.... ' The value of U.S •
.
direct foreign investments alone had increased by $3.4 billion
during 1963, while our other private long-term investments
abroad rose by $2.1 billion -- a total of $5.5 billion.
Of
this total, $3.6 billion reflected capital outflows from the
United States.
But another $1.6 billion represented rainv.st-
ment abroad of undistributed profits of U.S. subsidiari•• and
branch operations abroad, and $500 million was lncre.ael in
the value of foreign securities already held by American ••
The value of foreign investment. in tbe U.S. alao incr••~
~rQT,,:->·"r.'Cy .. --"'-'i~'·GllJ."5r C!J>~Ci!" "'e4'~~""'~~~~~_~
..1l"~8'~.~ +7281.) the improved performance of our 'COD~.
Vlq ··1:-e.~~6~
But the . . improvement in our1iisset position iN LSaSe 2. "i
di.ra,uding the large' voltnne of Government loans over.'41a -- _t
exceeded the whole of our balance of payments deficit.
payments deficit clearly does not
lated assets, but rather
fast.
~
mea~we
tt,
Our
are living off accsu·
tha~~~~
do too much too
- 4 growth, resulting from and generally in line with
the continuing improvement in business activity,
amounting to only about 9 per cent.
And the trade
figures so far available through the summer months
indicate that our total exports have continued to
move upward -- in a period when earlier large but
extraordinary sales of wheat, for example, had
ceased to be a factor -- and that the growth in
our imports has also continued to be moderate in
relation to our expanding GNP.
* * * * *
One of the largest elements in the over-all
improvement of our payments during the past year
has been the sharp curtailment (a reduction of
$1.3 billion in the fiscal year ending with June,
compared to the preceding year) in our private
capital outflow through foreign securities
with both flotations of new foreign issues and
American purchases of outstanding foreign securities showing immediate and very substantial declines since the Interest Equalization Tax was
- 3 -
in view of the great variety and complexity of the many
transactions and economic forces which are reflected in
our international accounts.
The deficit in the January-
March quarter of this year, for example, showed a particularly sharp decline because of an unusually favorable
combination of certain special and temporary factors
during those months.
On the other hand, the second
quarter of this year, reflecting some reversal of these
temporary factors, was not so good.
I am happy to say,
on the basis of such preliminary information as we now
have through September, that the third quarter will
....... ..* ~. . . . . .~ ....... 1" ... / , ... ~
~
'( " { ,,~. '.
r.--~? \ ... -"....y-. ... .,- - <I , ' . ~ ~
. . $ (' ,,( ... .J_ . ,.,..;r .. 1mprovement fa _.$.' lifipa ..hsp. ,.-·.ta •••
_/
,A /!
show~
ilI.-••••
A
"' ..Jt11o
~
"".,#J-.w~ .... ;.-~rIt(/ •
..
* * * * *
Our most encouraging gain of all, during the year
ending last June, was the $1.4 billion growth in our
commercial trade surplus over the level of the previous
12 months.
Our commercial exports (excluding those
financed by government aid and credits) increased about
16 per cent for the year -- compared with an import
I
~.
- 2 -
This striking improvement in our gold accounts has
been accompanied by increased demand from private
foreigners for holdings of dollars as working balances
or short-term investments.
During the first half of
this calendar year, such private demand for dollars
.,..- ,
'" ,;
./>..t:J .,
~-;!';-~ a.".'... l ~r""· ~
absorbed ::a \Ie' J~8a_~4rt =£......J,..a i-aee,.""1!t1:t"" but abotSl!-
~:-~ ~~:
our payments deficit.
net dollar outflow resulting from
"'~his
-
tendency for private
foreigners to absorb U.S. dollars has continued stron
during the summer.
In addition, our modest drawings from the IMF have the effect
of absorbing foreign dollar holdings.
As a result, total
foreign official holdings of dollars declined by $300
million during the first six months of this year.
Even more
significant, the decline infue official dollar holdings of
rnajor{Europeanlfinancial centerS alone, amounted to over
'--
-"
$600 million.
r'/£.xceIPts iaRemarkS by Secretary Dillon
at e'€tlng of Business Council
1- '
During the year and a quarter since the Presidential
Message of July 1963 supplementing and intensifying the
Administration's program for dealing with the ba1ance-ofpayments problem, we have made very substantial and truly
encouraging progress.
* * * * *
For the fiscal year ending with June 1964, on which comp1ete figures have now been published, our deficit on regular
transactions was only $1.7 billion -- well under half of the
total for the preceding 12 months and by far the most favorable showing since 1957.
* * * * *
This sharp reduction in our outflow of dollars combined
with growing confidence in the U.S. dollar, has brought an
even more dramatic improvement in our gold flows.
In contrast
to the heavy gold losses over a period of several years beginning with 1958, our total gold stock at the end of August -and the same will be true again for the end of September -showed', for the first time since 1957 a slight increase over
its year-earlier level.
TREASURY DEPARTMENT
Washington
FOR RELEASE P.M. NEWSPAPERS
~TURDAY, OCTOBER 17, 1964
EXCERPTS FROM REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE BUSINESS COUNCIL
AT THE HOMESTEAD, HOT SPRINGS, VIRGINIA
SATURDAY, OCTOBER 17, 1964
During the year and a quarter since the Presidential Message
of July 1963 supplementing and intensifying the Administration's
program for dealing with the balance of payments problem, we have
made very substantial and truly encouraging progress.
****
For the fiscal year ending with June 1964, on which complete
figures have now been published, our deficit on regular transactions
was only $1.7 billion -- well under half of the total for the
preceding 12 months and by far the most favorable showing since 1957.
****
This sharp reduction in our outflow of dollars combined with
growing confidence in the U. S. dollar has brought an even more
dramatic improvement in our gold flows. In contrast to the heavy
gold losses over a period of several years beginning with 1958,
our total gold stock at the end of August -- and the same will be
true again for the end of September -- showed, for the first time
since 1957 a slight increase over its year-earlier level.
This striking improvement in our gold accounts has been
accompanied by increased demand from private foreigners for holdings
of dollars as working balances or short-term investments. During
the first half of this calendar year, such private demand for
dollars absorbed practically all of the net dollar outflow resulting
from our payments deficit. This tendency for private foreigners
to absorb U. S. dollars has continued strongly during the summer.
In addition, our modest drawings from the IMF have the effect of
absorbing foreign dollar holdings. As a result, total foreign
official holdings of dollars declined by $300 million during the
first six months of this year. Even more significant, the decline
in the official dollar holdings of major European financial
centers alone, amounted to over $400 million.
****
- 2 Naturally, the progress over the past year in reducing our
payments deficit has not been uniform from one quarter to another.
nor should we expect it to be, in view of the great variety and
complexity of the many transactions and economic forces which are
reflected in our international accounts. The deficit in the
January-March quarter of this year, for example, showed a particula
sharp decline because of an unusually favorable combination of
certain special and temporary factors during those months. On the
other hand, the second quarter of this year, reflecting some revers
of these temporary factors, was not so good. Such preliminary
information as we now have through September confirms the indicatio
that the third quarter results will once again show an improvement
as compared to the second.
Our most encouraging gain of all, during the year ending last
June, was the $1.4 billion growth in our commercial trade surplus
over the level of the previous 12 months. Our commercial exports
(excluding those financed by government aid and credits) increased
about 16 percent for the year -- compared with an import growth,
resulting from and generally in line with the continuing improvement.
in business activity, amounting to only about 9 percent. And the
trade figures so far available through the summer months indicate tt
our total exports have continued to move upward -- in a period when
earlier large but extraordinary sales of wheat, for example, had
ceased to be a factor -- and that the growth in our imports has
also continued to be moderate in relation to our expanding GNP.
One of the largest elements in the overall improvement of
our payments during the past year has been the sharp curtailment
(a reduction of $1.3 billion in the fiscal year ending with June,
compared to the preceding year) in our private capital outflow
through foreign securities -- with both flotations of new foreign
issues and American purchases of outstanding foreign securities
showing immediate and very substantial declines since the Interest
Equalization Tax was first announced. Also, with the market now
smoothly adjusted to the existence of this tax, we see no evidence
there will be any big bulge in new foreign issues following the
final enactment of the law.
- 3 Another important element in our payments situation, but one
only partly reflected in the figures so far, is the program
announced in July 1963 for substantial further reductions of
approximately $1 billion in the Government's own payments abroad.
Our results through last June already reflect a reduction of about
$500 million from the calendar 1962 level, but the full effects
from this program are not expected until next year.
The world-wide investment position of the United States has
also continued to improve. The value of U. S. direct foreign
investments alone had increased by $3.4 billion during 1963, while
our other private long-term investments abroad rose by $2.1 billion
a total of $5.5 billion. Of this total, $3.6 billion reflected
capital outflows from the United States. But another $1.6 billion
represented reinvestment abroad of undistributed profits of U. S.
subsidiaries and branch operations abroad, and $500 million was
increases in the value of foreign securities already held by
Americans.
The value of foreign investments in the U. S. also increased,
very largely as a result of higher stock market prices, due to
the improved performance of our economy. But the improvement in
our net private asset position -- that is, disregarding the large
volume of Government loans overseas -- exceeded the whole of our
balance of payments deficit. Our payments deficit clearly does not
mean that we are living off accumulated assets, but rather that we
may have been trying to do too much too fas t.
These striking gains in reducing our balance of payments deficit,
accomplished in the space of a little more than a year since the
Presidential Me ssage of July 1963, have considerably shortened
the distance still remaining to be covered in our drive toward a full
balance in our international payments. Continued cost and price
stability, the rising profitability of U. S.' investment and the
strides we are making in improving productivity, provide a solid
base for further improvement. But steady, unrelenting effort, both
by the private economy and by the Government, will be necessary
to capitalize on this potential.
TREASURY DEPARTMENT
•
d
FOR RELEASE A. M. NIDlSPAPERS,
Tuesday, October 20, 1964.
October 19,
RESULTS OF TREl\SURYIS WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series c
Treasury bills, one series to be an additional issue of the bills dated July 23, 19~
and the other series to be dated October 22, 1964, which were offered on October 14,.
were opened at the Federal Reserve Banks on October 19. Tenders were invited for
$1,200,000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabOli
of 182-day bills. The details of the two series are as follows:
RANGE OF ACCEPTED
COMPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturin~ January 212 1965
Approx. Equiv.
Annual Rate
3.584%
3.596%
3.592%.
Price
99.094
99.091
99.092
Y
·••
··
••
••
••
·
182-dq Treasury billa
maturins AEril 222 1965
Approx. E<i1il
Price
Annual Rate
98.118
3.723%
98.106
3.746%
98.110
3.736% !J
4.5 percent of the amount of 91-day bills bid for at the low price -was accepted
18 percent of the amount of 182-day bills bid for at the low price was accept;ed
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
st. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
Applied For
Accepted
: Applied For
$ 3.5,425,000 '\ $ 24,370,000 : $
2,774,000
1,.583,718,000
824,443,000 :
1,320,423,000
31,001,000;
1.5,074,000:
9,691,000
35,629,000
34,692,000 - :
45,862,000
10,941,000
10,941,000:
6,377,000
)1,183,000
23,290,000:
10,022,000
202,.574,000 ' i
121,774,000:
178,383,000
38,266,000
28,881,000:
14,777,000
23,2.59,000
14,609,000:
7,747,000
31,761,000
26,181,000:
18,442,000
23,736,000
12,963,000:
10,990,000
122,.547,000'
65,647,000:
99,973,000
Acce ted
$
2,774,
713,02),
4,691,
45,862,
_ 5,477'
: 1,.5)0,
119,18),
12,777,Q
5,747,4
$2,170,040,000
$1,OOO,869,O~
I
-
$1,202,865,000!l $1, 725,461,000
18,342,~
8,170,~
57,29),~
~ Includes $2.53,733,000 noncompetitive tenders accepted at the average price of 99.0~
b'/ Includes $83,.58.5,000 noncompetitive tenders accepted at the average price of 98.~:
On a coupon issue of the same length and for the same amount invested, the retU1'llI'
these bills would provide yields of 3.67%, for the 91-day bills, and ).86%, for t:
182-day bills. Interest rates on bills are quoted in terms of bank discount
the return related to the face amount ot the bills payable at maturitY' ra~,,~
the amount invested and their length in actual number of d~ related to a ptJ-Ui'.
year. In contrast, yields on certificates, notes, and bonds are canputed
of interest on the amount invested, and relate the number of days remaining in~
interest payment period to the actual number of daY'S in the pe~od, with.. ,
compounding i f more than one coupon period is 1nv olv..e'd. .
Y
wi_
in-,
.
TREASURY DEPARTMENT
(
.dLEASE A. M. NEWSPAPERS,
~, October 20, 1964.
October 19,
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
; The Treasury Department announced last evening that the tenders for two series of
.8Ul'1 bUls, one series to be an additional issue of the bills dated July 23, 1964,
,the other series to be dated October 22, 1964, which were offered on October 14,
• opened at the Federal Reserve Banks on October 19. Tenders were invited for
loo,OOO,OOO, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
lB2-day bills. The details of the two series are as follows:
mOF ACCEPTED
fITIVE BIDS:
;
High
Low
, Average
91-day Treasury bills
maturini January 2l z 1965
Approx. Equiv.
Price
Annual Rate
99.094
3.584%
99.091
3.596%
99.092
3.592%
••
·••
··
!I :
182-day Treasury bills
maturins A;Eril 22.z 1965
Approx. Equiv.
Price
Annual Rate
98.118
3.723%
98.106
3.746%
98.110
3.73B%
!I
45 percent
of the amount of 91-d~ bills bid for at the low price was accepted
18 percent of the amount of 182-day bills bid for at the low price was accepted
~nrnDERS
APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
~strict
.ton
York
adelphia
eland
. ond
anta
TOTALS
Acce;Eted
For
24,310,000
$ 35,42.$,000 $
824,443,000
1,583,718,000
15,014,000
31,001,000
34,692,000
35,629,000
10,941,000
10,941,000
23,290,000
31,183,000
121,114,000
202,514,000
28,881,000
38,266,000
14,609,000
23,259,000
.31,761,000
26,181,000
23,736,000
12,963,000
122,547,000 .
65,647,000
$2,170,040,000 $1,202,865,000
A~lied
·••
··•
··•
!I
AEElied For
2,774,000
$
1,320,423,000
9,691,000
45,862,000
6,377,000
10,022,000
178,383,000
14,711,000
1,741,000
18,442,000
10,990,000
99,973,000
$1,725,461,000
AcceEted
2,174,000
$
113,023,000
4,691,000
45,862,000
5,417,000
1,530,000
119,183,000
12,777,000
5,747,000
18,342,000
8,110,000
51,293,000
$1,000,869,000
EI
~~~da8 $2$3,733,000 noncompetitive tenders accepted at the aTerage price of 99.092
~uda8 $83,585,000 noncanpetitive tenders accepted at the average price of 98.110
a Coupon issue of the same length and for the same amount invested, the return on
• II bUls would provide yields of 3.61%, for the 91-day billS, and 3.86%, for the
u2-dq bUls. Interest rates on bills are quoted in terms ot bank di.count with
return related to the face amount of the bill. p~able at maturity rather than
aaunt invested and their length in actual nlDlber ot days related to a 360-day
art In contrast, yields on certificates, notes, and bonds are computed in terms
interest on the amount invested" and relate the llUIlber of days remaining in an
~rest p~ent period to the actual number of days in the period, with semi-annual
~Clllp01U'ld1ng if more than one coupon period is 1nv olved.
D..1378
UNCLASSIFIED
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li:)Y'~LITr:;-c; 1,\1'!il (".IS $PCH 1.'Ilt BE-·;:'~XE'·'it')T F';~C\:; T~X INn~~ COUNTRY OF'
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INFO LETTERHEAD
October 19, 1964
FOR DflIffiDIATE PELFASE
US-BONN REACH AGREEMENT ON REVISION OF
DOUBLE TAXATION CONVENTION
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TREASURY DEPARTMENT
(
FOR IMMEDIATE RELEASE
DOUBLE
Delegations from the Federal Republic of Germany and the
United States met at Bonn from October 12 to October 17, 1964, to
negotiate a revision of the United States-Federal Republic
double taxation conventinn and to formulate in detail the general
understandings reached at Washington, D. C., in July 1964. The
negotiations were conducted in a spirit of friendship and mutual
understanding and ended with the initialing of the text of a
protocol revising the convention.
A major feature of the revision is a change in the taxation
of dividends. Under the new rule, dividends passing from one
country to the other will be subject to a reduced withholding tax
of 15 percent. ,An exception to this rule is provided in respec t
of dividends paid by a GermAn company to a United States compa ny
having an interest of 10 percent or more in the German company
paying the dividends. In the latter case, German tax on the
dividends will be withheld at the full rate of 25 percent,
whenever the dividends are reinvested in the German company. In
this connection, reinvestment in any calendar year totaling less
than 7.5 percent of the dividends received will be disregarded.
~ the other hand, any reinvestment made by the United States
company in the year prior to or following the year in which the
dividends were paid will be taken into account for purposes of
imposing German withholding tax at the full 25 percent rate.
Another important change in the revised text of the convention
relates to know-bow payments. Such payments will be treated as
royalties and as such will be exempt from tax in the country of
Source as from Jam.::ary 1, 1963.
The definition' of the term "permanent establishment" and the
rule governing industrial or commercial profits have been brought
into line with other recent double taxation conventions. Other
changes relate to the taxation of interest and capital gains.
Double taxation of dividends from portfolio investments in the
United States will, in the future, be avoided by crediting
United States tax against German tax. Finally, the convention has
been extended to include the German trade tax and capital tax.
Except as otherwise indicated the revised convention is to apply as
of January 1, 1965. It is expected that the protocol will be signed
and ratified as soon as possible.
D-1379
000
,. Jtt !ii.Lr;,.&S;; A. :'i. N£-";5 p~ PEas ,
. . . . .dal, 0otober 21, 196;.
~ULTS
OF TilfI~ UiU IS OFrsa 0' ADDttI CIW,
'l.S BIL1I0N IN MARCH TAl BILLS
1Mt.'-
'lll4J 'freasury 1.)epartment aQIloUDced 1.a\ eftD1D1 t bat \he \ellden to. . .
'l,SOO,OOO,OOO, or tb.ereaooute, of the Tax ADtlGlpat10Jl sm•• TftUV1 blUe -tit
Septeaber 2, 1964, and to mature ~ ..reh 22, 1965, were ope88d at. tbe ~
on Jctober 20. 'I'he additional aJltOUDt or bUla, lIhich were ortend 011 Octtebw 11..
iasui'd october 26 (147 daya to maturitl date).
"_':.I'
Tr!e details of this 1 •• ue are •• tollows.
total applied for Total accepted
$),186,622,000
1,501,58$,000 (include. 1202,)22,000 ..-ered .. a
DOnOOlfP8t.i1.i.e bali. ad aoeep\" ill
full at the ay...... priM Ib_ ~)
~e
of acceoted eompet1tlve bidl.
rl1lh
Low
•
-
Average
-
98.S7S F:quiya1ant rate of d1.ooUDt. approx.
98.,,9·
..."
98. $ 6 4 .
•
It
..
•
)."90~,.
).$29"
).Slt"
•
__•
•
(71i of tne _aunt bid tor at the low pr10e . . aocepW)
Federal
tte~ Me
D18trict
aOlton
New
York
Total.
total
AW1.d For
i 161,615,000
AO~
1,188,970,000
Ptdladel.pn1a
86,69),000
Cleveland
iiiohmond
26),110,000
ltlanta
l)O,)7S,OOO
)91,177,000
I 'ItiJ,ooo
QlS,Slo,oao
19,o9S,OOO
61,000,000
as,6)O,OOO
J&4,1SS,ooo
4b,6bO,OOO
)4,410,000
202,~2,oao
2~~,0Q0
l11.Q.neapoli.a
l&aau City
12),280,000
6),70$,000
91,100,000
)1,JOS,OOO
U&llaa
216,97),000
l€4.69g.000
.;Ideato
St. Louie
~
Franc1sco
ToMl
YOn ..
1),186,622,000
1Wa,OIS,oao
.6tJteOQR
m
I1,SOl,JlS,OOO
1n...eW, , ........ .
coupon iaaue of the • • _ 1eDith aDd tor the _ . UInD'\
biUa would :')roY1.de • yield ot ).62'. Int....... raw. OIl bUla aN . . . . . . .
tenaa of bank disooUllt with tbe return rela\e4 to the race ...,uat of , .. ~ ~
at ..turlty rat!".r than the UOUDt iftYe8ted and t.heir lenPh in aO'\aal . . . . II .
"late<! t.o • J60-day rear. In GOAt.raet, y1elda on oert.lt1oat.ee, MMe, ... .....
OOIIput.ed in t ..naa ot interelt 011 tile aMOlmt. a ...ted, aDd "law \be. IF • ., ....
r.ndD.1n~ 1n an inter..t payment period to the actual naber 01 daJ8 1a
nth ...la;..nal coapolWtt.:U.n,; it more than one coupon period 18 aY01....
tn...
1
* ,.....
TREASURY DEPARTMENT
(
IELF..ASE A. N. NEWSPAPERS,
ISday, october 21, 1964.
October 20, 1964
RESULTS OF
$1.5
Tl~URYIS
OFFER OF ADDITIONAL
BI1LJ01~ Hi t'lARGH TAX BILlS
.r
nne
Treasury Department armounced last evening that the tenders for an additional
or thereabouts, of the Tax Anticipation Series Treasury bUls dated
2, 1964, and to mature March 22, 1965, were opened at the Federal Reserve Banks
,.ber 20. The additional amount of bills, which were offered on October 14, will be
ld October 26 (lJ-l7 days to maturity date).
,~t,ooo,OOO,
The details of this issue are as folloTd's:
Tot~ applied for Total accepted
$3,186,622,000
1,501,585,000
(includes $202,322,000 entered on a
noncompetitive basis and accepted in
full at the average price shown below)
Ranee of accepted competitive bids:
High
Low
Average
98.575 Equivalent rate of discOlmt approx. 3.490i per annnm
98.559"
"""
"3.529,~ 1\
"
98.564"
1\
II
II
II
3. 518 .~ II
"
!/
(71i& of the am01ll1t bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
I Richmond
, Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San ~'rancisco
Total
Applied For
Totell
Accepted
161,615,000
1,188,970,000
86,695,000
263,730,000
61,000,000
130,375,000
391,177,000
34,410,000
123,280,000
63,705,000
216,975,000
4bh ,690, 0.9!~
$),186,622,000
$
;If;
Total
,
69,815,uoo
425,510,000
19~095.000
85,630,OV0
44,755,000
44,6hO,oOO
202,432,000
24,604,000
91,100,000
37,305,UDO
lhL.,025,ooO
r, 'i~\
31 ~~, 6'7;4,,~
$1,501,585,000
a coupon issue of the same length and for the same amount invested~ trh" re-~ll;"n on
:e bills would provide a yield of 3.62%. Interest rates on bills are quoted in
~ of bank discount with the return related to the face amount of the oills payable
turity rather than the amount invested and their length in actual number of days
,ed to a 360-day year. In contrast, yields on certificates, notes, and 1.Jonds are
. ted in terms of interest on the amount invested, and relate the numb9r ;)f dClyS
. ning in an interest payment period to the actual number of days in the period,
lth semiannual compounding if more than one coupon period is involved.
')380
- 3 -
and exchange tenders will 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 sal
or other disposition ot 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 subJec
to estate, inheritance, gif't or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hereaf'ter imposed on the principal or interest
thereof' by any state, or any of the possessions of the United 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 ot 1954
the amount of discount at which bills issued hereunder are Bold 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 tor suel
bills,' whether on original issue or on subsequent purchase, and the amount actuall
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 BraDch.
- '" decimals, e. g., 99.925.
Fr&cti.ons may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which v:lll
be supplied by Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for a.ccount 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.
'!'enders from others must be accompanied by payment of 2 percent ot
the face amount of Trea.sury bills applied for, unless the tenders are accompanied
by an express gua.ranty of payment by an incorporated bank' or trust company.
Dmnediately a.:rter 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 thereot.
The
secretary of the Trea.sury expressly reserves the right to accept or reject 8Zr1
or a.ll 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
fuf964
JaDtlfl.IT~1965
$100,000 or less for the 182
i4lf
tMf
Ju~
, (
) and
$2~
91
f14
noncompetitive
or
days remaintenders tor
-da.y bills without stated price from anyone
bidder will be accepted in full at the average price (in three decimals) ot accepted competitive bids tor the respective issues.
Settlement for accepted ten-
ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on
October
tilt
1964
, in ca.sh or other immediately ava.1lable :f\mds or
in a like i'ace amount of Trea.sury bills maturing
October 29, 1964
~
• Cash
TREASURY DEPARTMENT
Washington
October 21, 19M
FOR IMMEDIATE RELEASE,
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two ser:
of Treasury bills to the aggregate amount of $ 2,200,000,000
cash and in exchange for Treasury bills mat\lring
, or thereabouts, ~
tfT
OctoberJf! 1964
, in the &mol
of $ 2'20~410oo , as follows:
October~
91 -day bills ( to maturity date) to be issued
-W
in the amount of
$11200~000
amount of
Ja.nua.ry 28, 1965
M
$90l,9~
,
, or thereabouts, represent-
ing an additional amount of bills dated
and to mature
1964
~ ~
1964
,
, originally issued in the .
, the additional and original bills
to be freely interchangeable.
#:It
-day bills, for.$lIOOOI~OOO , or thereabouts, to be dated
October 29, 1964
, a.nd to mature
(13)
April 29, 1965
(14)
The bills of both series will be issued on a discount basis under competltl
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount. will be payable without interest.
They will be issued in bearer form on!
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 aad
$1,000 ,000 (maturity value).
'renders will be received at Federal Reserve Banks and Branches up to the
clOSing hour, on~-thirty p.m., Eastern Standard time,
Monday, October 26, 19~
t45fEach teJld1
'renders will not be received at the Treasury Department, Washington.
must be for an even multiple of $1,000, and in the case of competitive tender. t
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
FOR IMMEDIATE RELEASE
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders
two series of Treasury bills to the aggregate amount of
F,200,000,000,or thereabouts, for cash and in exchange for
.reasury bills maturing Oc tober 29,1964,
in the amount of
,2,201,304,000, as fOllows:
~or
91-day bills (to maturity date) to be issued October 29, 1964,
:n the amount of $1,200,000,000, or thereabouts, representing an
~dditiona1 amount of bills dated July 30, 1964,
and to
'tature January 28,1965, originally issued in the amount of
,901,969,000, the additional and original bills to be freely
·.nterchangeab1e.
182 -day bills, for $ 1,000,000,000, or thereabouts, to be dated
29, 1964, and to mature April 29, 1965.
~tober
The bills of both series will be issued on a discount basis under
ompetitive and noncompetitive bidding as hereinafter provided, and at
laturity their face amount will be payable without interest. They
'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
,maturity value).
Tenders will be received at Federal Reserve Banks and Branches
, to the clOSing hour, one-thirty p.m., Eastern Standard
~e, Monday, October 26, 1964.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
e for an even multiple of $1,000, and in the case of competitive
~ders the price offered must be expressed on the basis of 100,
ith not more than three decimals, e. g., 99.925. Fractions may not
F'used. It is urged that tenders be made on the printed forms and
orwarded in the special envelopes which will be supplied by Federal
eserve Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account of
llstomers provided the names of the customers are set forth in such
ers. Others than banking institutions will not be permitted to
. t tenders except for their own account. Tenders will be received
,"ut deposit from incorporated banks and trust companies and from
?nsible and recognized dealers in investment securities. Tenders
others must be accompanied by payment of 2 percent of the face
nt of Treasury bills applied for, unless the tenders are
Il':companied by an express guaranty of payment by an incorporated bank
~ trust company.
D-1381
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ 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 $ 200,0000r less for the additional bills dated
July 30, 1964,
(91-days remaining until maturit¥ date on
January 28, 1965) 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 October 29, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing Oc tober 29,1964. 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
( Contim:.ed)
S~andard
Metropolitan Areas
Reduction in 1905----tax liability oj((Dollar amounts in millions)
Peoria, Illir.ois
?hiladel?hia, Pennsylvania-New Jersey
Phoenix, Arizona
?it~sburgh, Pennsylvania
Portlo.nd, Ore.:;on-Hashington
?rovidence-P;.wtucket, Rhode Island-Massachusetts
~cading, Pennsylvania
Richmond, VirGinia
~ochester, New York
Sacra~ento, California
$ 20
313
42
159
62
50
17
31
52
44
St. Lo\.:.is, tf:i:,souri-Illinois
Salt La~e City, Utah
San AntoniO, Texas
.
San Eernardino-Riverside-OntariQ, California
San Dieci0, California
154
22
32
44
61
San Francisco-Oakland, California
San Jose, California
Seattle, Washington
Shreveport, Louisiana
Spokane, Wash~n3ton
285
57
92
13
Springfield-Chicopee-Holyoke, Massachusetts
Syracuse, Nell York
'l'acor:la, Hashington
Tampa-St. Petersburg, Florida
Toledo, Ohio
rIe," J'ersey
Tucson, Arizor.a
'I'ulsa, Oklahor:la
Utica -Roille, ~rew York
Washington, District of Columbia-Maryland-Virginia
Tre,~ton,
\\'ichi ta, Kansas
-:2arre -Hazleton, Pennsylvania
\':il:::ington, Delaware-Hew Jersey
\'iorcester, !~2.ssachusetts
Yo~~sstown-Harren, Ohio
~·Tilkcs
O::~C2
*
15
27
37
20
37
33
22
14
29
18
181
22
15
41
17
31
of the Secretary of the Treasury
Cffice of Tax Analysis
Sc;'a::..c.ard Metropol:ltan Axe'a. es'tiinates are based on the Area C1.istribution of income
tax after credits reported on 1961 income tax returns and published in Statistics
o:~ Ii. c O:l:e , _I.~di ~~uals, .~6t· Th? reduction in t~ ~abili ty for 1965 attributable
'Co "ce Revenue ~c" 01 19
loS estUlated at $11.3 b1.111.on (assuming 196,5 income leve
- 3 Continued
Standard
~ietropoli tan
Reduction in 1965
tax liability *
(Dollar amounts in millions)
Areas
$
}'ort Lauderur..le-no11ywood, Florida
Fort Worth, 7exas
Fresno, California
Gary-E~~~ond-Ea~t Chicago, Indiana
Grand Rapids, Michigan
35
19
39
26
}:arrisburg, ?ennsylvania
Eartf.:Jrc., Co"mecticut
EO:lOlulu, Hb.'.mii
Eouston, Tex3.3
TIuntington-A~hland, \'lest Virginia-Kentucky-Obio
Indianapolis, Indian~
Jacksonville, Florida
Jersey City, l'~ew Jersey
Johnsto'ym, Pennsylvania
Kansas City, Missouri-Kansas
20
47
38
91
11
57
26
44
10
77
18
Knoxville, Tennessee
Lancaster, Pe:msylvania
lilnsinG,
21
16
18
~·{ichigan
600
Los Angeles-Long Beach, California
Louisville, Kentucky-Indiana
45
32
56
95
MemphiS, Tennessee
:<inffii, Florida
Hisconsin
Paul, Minnesota
!':obile, Alabama
l·~ilwaukee,
"112
K~.nneapolis-St.
11
24
?Jashvi lIe, TenneSSee
New Raven, Connecticut
New Orleans, Louisiana
New York, Ne'.l York
rJewark, New Jersey
26
48
1,125
167.
Xorfo lk-Portsii1outh, Virginia
Oklaho~a City, Oklahoma
~aha, Nebraska-Iowa
Orlando, Florida
Paterson-Clifton-Passaic, New Jersey
25
33
37
18
105
(Continued)
- 2 Reduction in 1965 Tax Liability from 1963: Estimates of Distribution
Ar..ong the 100 Largest Standard Metropolitan Areas of the $11.3 billio~
Reduction in 1965 Tax Liability Resulting from the Revenue Act of 1964
Reduction in 1965
tax liability *
(Dollaramount$ ·in mil110nl
Standard l-!etropoli tan Areas
$11,300
United States
100
7,510
66'10
Standard ~etropolitan Areas
As percent of U. S. total
La~Gest
Akron, Ohio
Albuny-Schenectady-Troy, Nev York
Albuquerque, New ~>!cxico
Allentown-Bethlehem-Easton, Pennsylvania-New Jersey
Atlanta, Georgia
B~kersfield,
B~ltimore,
37
43
14
34
66
18
117
19
California
~ryland
Beaumont-Port Arthur, Texas
Binnincbam, Alabama
Boston, Massachusetts
32
194
27
Bridgeport, Connecticut
Buffalo, New York
Canton, Ohio
Charleston, West Virginia
Charlotte, North Carolina
85
20
15
17
16
610
Chattanooga, ~ennessee-Georgia
Chicago, Illinois
CinCinnati, Ohio-Kentucky
Cleveland, Ohio
Cclu~bia, South Carolina
81
144
7
Colur:lOUS, Ohio
Dallas, Texas
Davenport-Rock Islanq-Moline, Iowa-Illinois
D3.ytcn, Ohio
Denver, Colorado
52
86
20
53
77
19
Des NOines, Iowa
Detroit, !~ichigan
Duluth-Superior, Minnesota-Wisconsin
El P::lSO, Texas
Flint, Michigan
272
16
12
27
(Continued)
Liaoilities ~rc~ 1953: Esti~ates of St~te Jistributll
1965 'l'ax Liabilities Resulting fro~ the 1964 Revenue ~
(Dollar amounts in millions)
States
~ ~
---
,~~
......... ,...
~
1963 lisb:'li ~ies
$11,300
106
15
74
49
.. - ....... ... , ...
-"
: Decrease in 1965 i~co~e tax liabi~
,...
......... "-"'."u-.-oJ
C~:i:"'ur:'.ia
1,324
Co:.orc.G.c
119
241
45
J~~~r~c~
--.,
...
. .' ..--0:.... ::...G...::l
of
Colu~bia
~
76
250
145
49
_.. -. .
,..;..-- . . . ~:-. vJ..s
..:. ;-;Co.lo.::..a
I~
...a
;C:::.:-.Sz.s
;{0::tI.lC:{.Y
:LJuisi&r~a
~~[l i!1C!
28
835
272
135
114
107
128
42
223
.. ::':::-~esota
:·:~ssissip?i
:·:issouri
377
506
184
44
25l
32
cO
29
35
....
51-:
42
~
-
~&yolina
-
-.... .......
,',v_ ..........
J3.ko~a
l,5C5
155
19
65:"
109
~:.~ :::--.. syl v'a:--.. ia
lG5
701.:,
55
Soc:.tt Carolina.
South Dakota
'=e~~essee
69
25
,-/'
Texas
493
U~~2:.
vc:::::-~ont
v.=::.x-.:::;:J:..:-J,:!.-.::.!.
!."-,'~~h;i. ~c;"tOr::l.
..:.,50
lL
1964 and the fiDal third wlll
1965.
Aa dw
incre. . . ill
~
.ffective
ta
attach" ••cilute. .how. the . . . .ttMl
19.' iDcOIDe level. vill catty the total
1nclivi4ual tax cut . .11 oyer the $ll-bil1icm ......
Thl. will have • very positive effect _ _I'
and. together with the
_ot...
. .. . . ,
tax recluetiou the
Administration rill seek uxt year ••houlcl , ..wi.e
a continu1q .trona and healthy .t:iaJlu. to
purehaains powerf. n
000
."._1'
bkIti 1 .1&• •" Fha
State and metropolitan area .. t . . . . . . of Che tax cut tee 1965,
wbao the 1964 Reveaue Act wtll bee_ fully .ffeeti...
tt Q ~(.)
tab1ea( P~.."... f.'i"... ~to...h""" ~
~
'l'he
:!ithe
.-
.~ ~
~
total iHiYi....1 tax out both by Statu
and by _jor .-tropoUt_
of income.
ar-HbaHd
OIl . . . . .t . .
1965 leftll
The reduction reflect. the clifferaea ift tax llablliti..
for 1965 compared to actual tax l1abil1ti.. paid for 1965 bafor.
the tax cut became eff•• ttv••
"The response of the eoOllOllY to the 1964 tax cnst
baa been excellent, and there 1. every 1ruIlcati01\
that it will continue to be
80
in 1965.
"Under the Revenue Act. of 1964, two-third. of
the individual tax reduction bee.- affective in
TREASURY DEPARTMENT
October 22, 1964
FOR RELEASE: A.M. NEWSPAPERS
SUNDAY, OCTOBER 25, 1964
DILLON ANNOUNCES 1965 TAX CUT ESTIMATES
The Treasury today released the attached State
area estimates of the individual income tax cut for
1964 Revenue Act will become fully effective.
/
d metropolitan
965, when the
I
The tables show the total individual tax cut/both by States
and by major metr2P..q.~ltan areas, based on ex~ect~d 1965 levels.
of income. The ~400cLbn reflects the 'HffQ;QA~ in tax9.iL~c v·tLtt.o
liabilities for 1965 cO!apared to actual tax liab-iliti9~ paid for
)96i
heh..e
thg
U
lit b£
E
,ffert;ye.
~li1iftr:;;"t;:~,.
Treasury Secretary Douglas Dillon issu.
the following statement lr
"The response of the economy to the 1964 tax
cu t has been exce llen_t, and there is every
indication that it will continue to be so in 1965.
"Under the Revenue Act of 1964, two-thirds of
the individual tax reduction became effective in
1964 and the final third will become effective in
1965. As the attached estimates show, the expected
increase in 1965 income levels will carry the total
individual tax cut well over the $ll-billion mark.
This will have ~ very positive effect on our economy
and, together with the excise tax reductions the
Administration will seek next year, shou13 provide
a continuing strong and healthy stimulus to
consumer purchasing pow~r."
Attachments
000
D- 1382
TREASURY DEPARTMENT
t
(
CORRECTED COpy
October 22, 1964
FOR RELEASE: A.M. NEWSPAPERS
SUNDAY, OCTOBER 25, 1964
DILLON ANNOUNCES 1965 TAX CUT ESTIMATES
The Treasury today released the attached State and metropolitan
area estimates of the individual income tax cut for 1965, when the
1964 Revenue Act will become fully effective.
The tables shaw the total individual tax cut both by States
and by major metropolitan areas, based on expected 1965 levels
of income. The tables reflect the reduction in tax resulting
from the full effect of The Revenue Act of 1964.
Treasury Secretary Douglas Dillon issued the following statement:
"The response of the economy to the 1964 tax
cut has been excellent, and there is every
indication that it will continue to be so in 1965.
"Under the Revenue Act of 1964, two-thirds of
the individual tax reduction became effective in
1964 and the final third will become effective in
1965. As the attached estimates show, the expected
increase in 1965 income levels will carry the total
individual tax cut well over the $ll-billion mark.
This will have a very positive effect on our economy
and, together with the excise tax'reductions the
Administration will seek next year, should provide
a continuing strong and healthy stimulus to
consumer purchasing power."
Attachments
000
D-1382
Decrease in 1965 Individual Income Tax Liabilities: Estimates
of State Distribution of $11.3 Billion Decrease in 1965 Tax
Liabilities Resulting from the 1964 Revenue Act
(Dollar amounts in millions)
States
Decrease in 1965 income tax
Itabtltttes 1/
$11,300
Uni ted Sta tes
106
15
74
49
Alabama
Alaska
Arizona
Arkansas
1,3 24
119
241
45
Callfornia
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
76
250
148
49
Idaho
Illinois
Indiana
Iowa
28
835
272
135
Kansas
Kentucky
Louisiana
Maine
114
107
128
42
Maryland
Massachusetts
Michigan
Minnesota
223
377
506
184
Mississippi
Missouri
Montana
Nebraska
44
251
32
80
(Continued)
- 2 -
(Continued)
States
Decrease in 1965 income tax
liabili1;.ies 1/
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Other a rea s 'E.I
$
29
35
511
42
1,505
155
19
651
109
105
704
55
69
25
136
498
46
16
197
197
73
227
19
23
Office of the Secretary of the Treasury
Office of Tax Analysis
11 State
-
21
-
estimates based on State distribution of 1961 income
tax liabilities published in StatistiCS of Income,
Individuals, 1961. The reduction in 1965 income tax liability attributable to the 1964 Revenue Act is estimated
at $11.3 billion assuming 1965 income levels. The 1965
reduction estimated at the time of passage of 1964 Act was
$9.1 billion assuming 1963 income levels.
Returns of residents of Puerto Rico and U. S. citizens
residing in the Canal Zone, Virgin Islands, or abroad.
Reduction in 1965 Individual Income Tax Liability: Estimates ot
Distribution Among the 100 Largest Standard Metropolitan Areas
of the $11. 3 Billion Reduction in 1965 Tax Liability Resulting
from the Revenue Act of 1964
Reduction in 1965
tax liability *
(Dollar amount:; in millions)
St.andard. Metropolitan Areas
$n,300
United States
7,510
100 La:"ccst St8.:1durd ~etropoli tan f.:r:..:;:;.s
As percent of U. S. total
66%
Ai\ror., Ohio
Alba:-ly-3chenecto.d.y -~roy, New York
j\l~u~uc!"que, :JC\.... i':2xico
AlleGtown-Bethlehem-Easton, ?cnnsylv~nia-New Jersey
I.tlanta, Georgia
14
34
66
18
117
Batcrsfiellt, Co.lifornia
B:.Jlti:no::-e, H;.rybnd
ll~nllmont-Port .~'.-thur, Texas
Bi rrnt ncha:n, .to_In burna
Boston, Massachusetts
19
32
194
27
Bridgepoyt, Connecticut
Buffr.:.lo, New York
CQ:1ton, Ohio
Charleston, West Vireinia
CharlJ~t~, North Carolina
85
20
15
17
16
Chattanooga, Tennessee-Georgia
610
81
ChicClGo, I11irlois
Cincinnati, Oi-lio-Kentucky
Clevel:::;.nd, Ohio
Cc L:;~~i'--" Sou~;h Cay,)lina
144
7
52
86
Columbus, Ohio
Dallas, Texas
D2.venport-~ock
37
43
Island-Moline, Iowa-IllinoiS
!hyton, Ohio
Denver, Colorado
20
53
77
19
Des Moines, Iowa
Dctroi t, Michigan
Duluth-Superior, Minnesota-Wisconsin
El P:lSr) , Texas
Flint, Michigan
272
16
12
27
(Continued)
-2 Contir.ued
Reduction in 1965
tax liability *
(Dollar amounts in millions)
St!.mdard Metropolitan Areus
$ 21
35
fort Lauderdale-Hollywood, Florida
Fort Worth, Texas
Fresno, Cali~ornia
Gary-H::l':~;nond-I;ast Chicago, Indiana
Grand Rapids, Michigan
19
39
26
Ec:rrisburg, ?ennsylvania
Hartf·)rd, CO~1nec tic ut
Honolulu, Ha,mii
Houston, Tex3.~)
Huntington-Ashland, West Virginia-Kentucky-Ohio
20
47
38
91
11
57
Indianapolis, IndianaJacksonville, Florida
Jersey City, New Jersey
Johnstmm, Pennsylvania
Kansas City, Missouri -Kansas
26
44
10
77
18
16
18
Knoxvi lie, Tennessee
lancaster, Pennsylvania
Lansing, Hichigan
ws Angeles-Long Beach, California
wuisville, Kentucky-Indiana
600
45
32
56
95
Memphis, Tennessee
Niami, Florida
Milwaukee, Wisconsin
lUnneapolis-St. Paul, Minnesota
Mobile, Alabama
"112
11
24
Nashville, Tennessee
New Haven, Connecticut
New Orleans, Louisiana
New York, New York
Newark, New Jersey
26
48
1,125
167
25
Norfolk-Portsmouth, Virginia
Oklahoma City, Oklahoma
Ornaha, Ne bras ka - Iowa
Orlando, Florida
Paterson-CUfton-Passaic, New Jersey
33
37
18
105
(Continued)
~3-
(Continued)
-
Standard Metropolitan Arecs
Reduction in 1965-tax liability *
(Dollar amounts in millions)
Peoria, Illir..ois
Philadelphia, Pennsylvania-New Jersey
Phoenix, Arizona
Pittsburgh, Pennsylvania
Portland, OreGon -\Olashington
Providence-Pawtucket, Rhode Island-Massachusetts
Reading, Pennsylvania
Richmond, Virginia
Rochester, New York
Sacramento, California
$
20
313
42
159
62
50
17
31
52
44
St. Louis, Mi!,souri-Illinois
Salt lake City, Utah
San Antonio, 'l'exas
San Bernardino -!U verside -Ontario., California
San Diego, Cu lifornia
154
San Francisco-Oakland, Calif'ornia
San Jose, California
Seattle, Washington
Shreveport, Louisiana
Spokane, Washington
285
57
22
32
44
61
92
13
15
Springfield-Chicopee-Holyoke, Massachusetts
Syracuse, Ne\l York
Tacoma, Washington
Tampa-St. Petersburg, Florida
Toledo, Ohio
27
Trenton, New JOersey
TUcson, Arizona
Tulsa, Oklahoma
Utica-Romeo, new York
Washington, District of' Columbia-Maryland-Virginia
22
W1chi ta, Kansas
Wilkes-Barre-Hazleton, Pennsylvania
~ilmington, Delaware-New Jersey
~orcester, Massachusetts
Youngstown -Warren, Ohio
37
20
37
33
14
29
18
181
22
15
41
17
31
Office of' the Secretary of' the Treasury
Office of Tax Analysis
'St"andard Metropoli"tan Areoa estimates are based on the Area d.istribution of income
t~ after credits re~orted on 1961 income tax returns and published in Statistics
ttIncome, _Individuals, 1~61. The reduction in t~ liability for 1965 attributable
o the Revenue Act of' I96 loS estimated at $11.3 blollion (assuming 196.5 income levels).
°
U1'('
exempL from aLL trucat:ton now or hereafter :inrposcu on the princIpal or interer.t
l,hcrcof hy (my Stul.e, or any of the pOt1GesGions of the United States, or by any
1.0C[1,
I. tuxJnr: auLhorlty.
For purposeD or tllxat:i.on the amount of discount at which
'1.'l'eaG1ll'Y bills nrc originally Gold by the United states is considered to be interest.
Under Section::; ,1,54 (b) and 1221 (5) of the Internal Revenue Code of 1954
the nmount of discount at 1-1hich billa Josued hereunder are sold is not considered
to accrue until such bills arc Gold, redeemcd or otherwise disposed of, and such
bills nrC' e):clu<krl from conr;i(lPratiol1 nr; c;'ptt.ul
o.i.' l'rcnGury biLl::; (other
[.]Pl1
n..;~~ctG.
hecordingly, the Olmer
1 i.·i·(~ In31u'unec eompanic::;) issued hereunder need in-
clude in h:i.s income tax return only the difference betvreen the price paid for such
billG, ,·rhcther on oriGinal L;r;uc or on riltbsequent purchase, and the amount actual]
l'ece:i.ved either upon snle or redemIrtJon at maturity durinG the taxable yea.r for
vrhieh the return i:-; made,
118
orrlinoxy
l]dn
or lose.
'l'l'cnsury Department Circular No. ~l8 (current revision) and this notice, pre·
scrj.be Lhe t.erms of the Treasury bills [lJld govern the conditions of their issue.
Copies of the circu.lar may be obta.ined from any Federal Reserve Bank or Branch.
- 2 -
banking institutions "Till not be penni t'l.ed to submIt tenders except for their own
account.
Tenders ,vill be received v.t thout deposit from incorporatr:;d banks and
trust companies and from responsib.le and recognized dealers in investment securities.
Tenders from others must be accompanted by payment. of 2 percent of the fade amount
of Treasury 1>111s applied for, unless the tenders are accompanlea. by an express
guaranty of payment by an incorporated bank or trust company.
Inunediately. after the closing hour, tenders wIll be opened
serve
Bo.n1tS
nt.
the Federal Re-
and Brunches, follmdne \Thich public announcement '\vil.L be made by the
TrcasuryDepai'-Lment of the DmoutlLoland price range of accepted bids.
ting tenders "lill be advi sed of the acceptance or rej ec l.ion the re 0[' •
'l'hose submltThe' Secretary
of'the 'l'reasury e::'1?ressly reserves the riGht to accept or re;iect any or all tenders,
in "Thole or in part, and his action in any Guch respect shall
01::
11naJ:., I Subject
to these reservations, noncompetitive tenders for $ 2~
or less '\vi thout
stated price from anyone bidder "rill be accepted in full at the average price' (in
three decimal'G) of accepted competitive bids.
Settlement for accepted tenders in
accordance "Tith the bids must be made or completed at the Federal Reserve Bank on.
_._o_ve_m::b=-:2e~r~2.,;.,_1_9_6_4__ , in calJh or other inunediately available funds or in a like'
j{jijXIXi
face amount of Treasury bills maturinc;
tenders "rill receive equal treatment.
ences between the par va.lue of maturine
prIce
of the
October 31, 1964
~
Cash and exchange
Cash adjustments '\vill be made for
biJ~s
differ~
accepted in exchange and the issqe
ne"T bills.
The income deri vedfrom TrealJury bills, whether interest or gain. f,rom· :t;.he· sale
or other disposition of the bills, does not have any cxempt:/.on, as such, end loss
froill
the sale or other disposition of Treasury bills does not have> any spe,<;:1al
tre'~tment, as such, under the Internal Revenue Code of 1954.
The bills are subject
to estate, inheritance, gift or' other excilJe taxes, "rhether Federal. .01' State, but
TREASURY DEPARTMENT
Washington
I'OR IMMEDIATE RELEASE,
~
October 21, 1964
Y REFUNDS ONE-YEAR BILlS
The Treasury Department, by this public notice, invites tenders for
~. 1,0~00,000 , or thereabouts, of
~
in exchange for Treasury bills maturing
of
1,0~3,000
$
-d~ Treasury bills, for cash and
October~1964
,to be issued on a discount basis under competitive and
noncompetitive bidding as hereinafter provided.
dated
October
, in the amount
~1964
The bills of this series will be
, and will mature
the face amount will be payable without interest.
October 31, 1965
,when
J(1lJ9X
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
Reserv~
Banks and Branches up to the
closing hour, one-thirty p.m., Eastern Standard time,
TueSda~Ober
Tenders ,nIl not be received at the Treasury Department, Washington.
27, 1964
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 dectmels, e. g., 99.925.
Fractions may not be used.
these bills will run for
365
W9X
(Notwithstanding the fact that
days, the discount rate will be computed on a bank
discount basis of 360 days, as is currently the practice on all issues of Treasmy
bills.)
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which 'nll be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for account of customers
n~vided
the names of the customers are set forth in such tenders.
Others than
TREASURY DEPARTMENT
FOR IMMEDIATE RELEASE
TREASURY REFUNDS ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
for $1,000,000,000, or thereabouts, of 365-day Treasury bills, for
cash and in exchange for Treasury bills maturing October 31, 1964, in
the amount of $1,000,273,000, to be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided. The
bills of this series will be dated October 31, 1964, and will mature
October 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 c los ing hour one - thir ty p. m., Eas tern Standard time,
Tuesday, October 27, 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. Frac t ions may not be used. (Notwi ths tanding
the fact that these bills will run for 365 days, the discount rate
will be computed on a bank discount basis of 360 days, as is
currently the practice on all issues of Treasury bills.) It is urged
that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by Federal Reserve Banks or
&anches 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 accompanien by payment of 2 percent of
ilie face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trus t 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
D-1383
- 2 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 accepted in full at the average price (in three
decimals) of accepted competitive bids. Settlement for accepted
tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on November 2, 1964, in cash or other
immediately available funds or in a like face amount of Treasury bills
maturing October 31, 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
- 13 ~... .e;z"'''''-:'~
law.
If
it~
feasible, this optional plan could be an important
first step toward a most desirable goal:
Much lower tax rates
under a simpler and more equitable tax code.
The economic promise of the comin3 years is indeed great.
And
~ve
shall realize it, if only we continue to follow and build
upon the policies that have proved themselves so successful over
the past four years.
000
170
- 17 policies that follo·.Jed a \vise and prudent course of accompanying
restraint in government spending 'ivith an expansion in private spendi
pmver -- policies that sought to promote economic grmvth by promoting economic freedom.
If we continue to rollo':<7 those policies, we can expect continuE
progress on all economic fronts
.~ve
can also look forward to
'f
cuts in our e~~cise taxes n7f year -- based upon the thorough and
systematic studies that have no# been underway for many months.
In the more distant future, we can look forward as well to
further income tax cuts -- depending upon the state of our economy
and of our Federal budget.
In the nearer future, we shall be
giving our full attention to Senator Long's interesting new tax
proposal, which ':vould offer an alternate, and far 10-:ver, tax rate
schedule to those Hho would be 'Nillin;; to forego most of the
deductions and other exemptions from
t~;;;t: under present
171
- 16 -
striking about-face in our gold outflows.
In each of the past two
months, and for the first time since the 1957 Suez crisis, our
L~?:~~
recorded a modest ga~ver the preceding
total gold holdings
t'Vvelve months.
This excellent progress in our international accounts has
brought our goal of full balance \vell within sight -- and can bring
it well within our grasp if both the private economy and Government
not only continue, but intensify, their efforts.
Thus, in our balance of payments, in our budget, and in our
domestic economy, the outlook today is far different than it was
four years ago.
That outlook -- like our unparalleled progress
during those four years -- has had its birth and its upbringing
\
in reasonable, moderate, and flexible economic policies that rejected demands to purchase either domestic economic growth or
balance in our international payments at the expense of the other -
172
- 15 in response to the sustained gains in domestic production.as
many had feared -- has recently improved.
In the year ending last
June, our commercial trade surplus grew by $1.4 billion beyond the
level of the previous t'\ve1ve months.
Our commercial exports (not
counting those financed by 30vernment aid and credits) increased
by about 16 percent for the year -- compared to an import growth
of only about 9 percent.
The trade figures so far available throug
the summer months show that our total exports have continued to
rise and that the growth in our imports has remained moderate in
relation to our expandin3 GNP.
Overall, for the fiscal year ending last June, our
balance of payments deficit on regular transactions was only
$1.7 billion -- well under half the total for the preceding twelve
months and by far the most favorable since 1957.
This sharp reduc-
tion in our payments deficit has helped generate an even more
- 14 Unemployment, while still too high, fell to 5.1 percent in
the third quarter of this year, down from the 5.4 percent level
of the first half of the year, from the 5.6 to 5.7 percent levels
of 1962 and 1963, and from a recession high of 7 percent in early
1961.
Hand-in-hand with this large and steady reduction in the unemployment rate, there has been a large and steady rise in real
take-home pay for the
~vorker
-- evidenced by the fact that,
after taxes and full adjustment for any and all price increases,
the average \veekly take-home pay for a ';vage-earner with three
dependents is today 11 percent larger than it was in early 1961.
These gains have been accomplished in an environment of price
stability.
That price stability is now beginning to 'J;..creaSin1
dividends in terms of heightened competitiveness in our export
industries.
Our commercial trade balance -- instead of deteriorat:
• 13 by $100 billion -- _
about 5.2 percent.
: 7t-
azmual rat. of iDor_. t.n nal tulia of
The r.dera1 ....rye Bocci'. iftclu of ......
trial production has r1seta even .ore abuply.
tM' year t the productioa 1Dclex . . . 20
1961 level --
aD
By S. . . . . . of
,.._.t
~
1U ),ebnu,
annual rate of incr.... of 7.4 pereat.
*_
Corporat. earniDp before tax have riND ehaz'ply. ... .
an anaual rate of .57.3 blllloa fft the fint half of thia ,... ••
$7.3 billion hi&ber than the fira. balf of taat year
~
.15.7
billion, or 38 perc_t, hiaher tbal cluriq the firac half .f 1961.
With tax liabilitie. 1D the firat half reflectiDa the . . . 1'. . . . .
corporate rate., pr.flt. after
~ l."aD
at the
r.~
of "1.6 1d1U_
21.1 percent hiaher than in the ..... period ill 1961.
the full year 1964 are apeoted to . . . .d
more thaD in 1963.
AlN .........
f44 bUlloa _. U , .. .c
- 12 -
175
sixty percent of its ultimate cost reduction goal of $4.6 billion
annually.
In my o:m Treasury Department, there has been an active
Management Improvement Program on the books for the past 18 years.
Yet last year saw the highest annual recurring savings ever
achieved under this pro6ram.
~foreover,
fiscal 1962 and 1963 were
the third and fourth best years of the entire program.
Our four
year total savings exceed those of any earlier four year period by
almost SO percent.
~~
~ ]22
four years of frugality throughout the Federal govern-
ment have, I repeat, been four years of greater prosperity for the
private economy -- a prosperity deliberately fostered by Government
policy.
The fruits of that policy are as evident -- and abundant --
in our domestic economy today as they are in our Federal budget~
From the first quarter of 1961 to the third quarter of 1964,
our Gross National Product valued in constant dollars has risen
176
- 11 ..
totaled only 2,469,000 -- more than 100,000 under the ortgiaal
budget estimate in January 1963, more than 43,000 under the revi.ed
estimate in January 1964, 21,000 lee. than actual employment.
year earlier, and 15,000 less than actual employment two year
earlier.
At the end of September, Federal civilian employment ....
23,741 below September 1963, and lower than at any time in the l •• t
two and a half years.
And Federal clviliam employment eeilifta.
are now being lowered even more:
For instance the ceiling for the
Department of Defense has just been cut by another 5,367 employ....
These reductions in Federal employment have bean coupled
with a comprehensive, sustained -- and equally impressive --
program for greater efficiency and productivity on the part of
every Federal employee and every Faderal department.
The co.t
reduction program of the Department of Dafense la.t ,.. .r produeed
identifiable and verified savings of $2.8 billion,
mor. th.-
117
- 10 -
057
the end of fiscal 1964 on June 30th last, actual expendi.
tures for that year totaled $97.7 billion.
That represented a cut
of more than $1 billion from the original 1964 budget estimate made
in January 1963 -- and a cut of $700 million from the revised
estimate made in January 1964.
The latest estimates of expenditures for fiscal 1965, publishe
l'
last May, total only $97.3 billion -- $600 million less than the
original estimate in January 1964.
This figure is also $400 millio'
less than actual expenditures for the last fiscal year -- only the
second time in 9 years that a Federal budget calls for a decrease,
and not an increase in government spending.
In every phase of Government activity today, you see similar
evidence of a most intense and unrelenting drive for frugality.
You see it, for example, in the fact that Federal civiliam employment has been effectively reduced.
Last June 30, such employment
170
- 9 -
\.,.
And we have kept faith with that resolve, as one simple comparison makes supremely clear:
Over the four fiscal years 1961
through 1965, expenditure increases, incurred and planned, on all
Federal budget items other than defense, space, and interest, will
have been held to a total of less than $4-1/2 billion.
In com-
parison, the best efforts of the preceding administration -- and
I can vouch for the fact that the will to hold down expenditures
was there -- resulted in a full $6 billion increase in these same
items during the 1957-61 period.
The plain fact is that the need for strict control over
Government expenditures has never been met \vith greater effort, or
better result, than over the past rour years.
been intensified under President Johnson.
examples:
And that effort has
Let me citRjust a few
179
-8-
business taxes as a result of the earlier tax measures -- will
mean a total reduction in 1965 business taxes of more than
$5-1/2 billion.
We have accompanied these dramatic moves to bolster the
private sector of our economy with a rigorous control over
government expenditures that has been unsurpassed in recent memory
At the beginning of 1961, we hac no illusions that expenditur
control would be easy.
It never is.
We also knew that a large
rise in Government outlays for defense and space was inevitable,
and that we had to expect continued moderate increases in the
interest cost on the national debt.
Because of those unavoidable
increases for deiense, space, and
(",,....
..,.-
debt service,
7 zt
Jill)
~'le
resolved to exercise the closest control over
all other bud:set costs.
UM.'",,""
-7in terms of incentives to inv.st. their iapact baa be.
equivalent to a reduction in the corporate profitt tax
t~
S2
to about 38 percent.
Following these 8trona new atepa to anlar,a the c.,.eitJ of
the private economy, we took the moat v1&orou8 and forward-looklq
step of all in the I.avenue Act of 1964 -- the larl.at tax Gut 1D
the nation's history, amounting to $14 billion at next year'.
levels of income.
that measure will
In 1965 -- when it will be fully effective --
htc.
of individual taxpayers.
more than $11.3 billion from the tax load
In other verda it it will mean an ext1:'a
$30 million a day available in the private economy for baa.t1D&
the purchasing and investing power of the nation'. taxpayer••
That massive reduc:tion in the lndlvidual tax load "ill be
complemented by a $2.7 billion cut in corporate taxe8, whlcll .combined with an estimated cut of roughly
.3
billion in 1965
181
-6-
business -- if it were freed of excessive curbs upon expansion
,
~
~~./!~;~~
and ~tive1y encouraged by proper Government policies -- could not
only meet the challenge ot foreign competition, but also produce
the jobs so badly needed here at home.
We, therefore, moved
promptly to carry out two major fiscal measures designed to
generate large and long overdue increases in the incentives for
private domestic investment in new plant and equipment:
First, the Treasury Department completely revised depreciatio
guidelines for tax purposes.
That was the first such revision in
more than twenty years -- although those twenty years had witnesse
vast changes in industrial practice.
Second, a tax credit of seven per cent on new investment in
machinery and equipment was included as a key element in the Reven
Act of 1962, and was further strengthened in the Revenue Act of 19
Together, these measures have enhanced the profitability of a
typical investment in new equipment by
more than 25 percent.
Or,
182
-5-
private economy was itself the essential solution, not only to
chronic unemployment, under-investment and budget deficits, but
to our balance of payments needs as well.
We made a deliberate
decislon, therefore, to reinvigorate the private sector of our
economy as the paramount force in achieving our national economic
goals.
\ve were also convinced that, in any program to restore the
vitality
o~
the private economy, the first step was to free
_~erican
enterprise from policies that had long restricted invest-
ment. During the 1950's, business fixed investment
decline as a percentage of total national output.
tended to
That decline
was permitted to occur at a time when other industrialized countri
were rapidly expanding their capital facilities and replacing
outmoded plant and equipment.
As a result, those countries became
increasingly iormidable comfetitors in international markets.
We believed that the native ingenuity and drive of American
18')
.....
.
-4-
had been followed by successively shorter and weaker recoveries,
and the previous recession had produced the largest peacetime
budget deiicit in our nation's history.
high.
Unemployment was far too
Business investment had fallen rar below the levels essentia
to satisfactory economic growth and to the success
American
OL
industry in the face of growing competition froffi abroad.
same time, a series
OL
balance of payments deficits
~
-- which, on
.
the basis of regular transactions, had averaged almost $4 billion .
,
o/
"'-!. ,
fIII
a year from 1953 through 1960 -- had touched off
.
oss
U'I"..
of
con~idence
in the dollar.
These deficits had brought with them
an accelerating out£low of gold amounting to more than $5 billion
in the same three-year period -- an outflow that reached a clUMX
in the FaIlor 1960, when speculators pushed the price
o~
gold
in London up to $40 an ounce.
From the very outset, we were convinced -- and events have
more than upheld our conviction -- that a strong and growing
184
-3-
same level as it was six years ago.
And the consumer price index
in August of this year showed an increase of only one percent for
the previous 12 months, a performance that has not been excelled
in any similar period in any year since 1955.
Our debt management policy has enabled us to finance our debt
in a conservative, non-inflationary manner.
For the first time
since the war, this Administration has succeeded in lengthening the
average maturity
o~
the entire marketable debt.
I mention that iact, not only because of its relevance tonight
but because it reminds us that, like the unprecedented prosperity
we enjoy, and the marked progress we have made in reducing our
balance of payments deficit, in cutting unemployment, and in expanding business investment and profit margins, our record of price
~"
.#"",.!!f/!
ago ... IN. in the throes
~
of . . . fourth postwar recession.
Each of the three earlier rec....
185
-2-
people of Louisiana in choosing these ... men to represent them
in
~vashington,
the Nation would probably not have had a tax reduc-
tion bill this year.
Every
~\merican
who believes in the importancE
of the smooth functioning of our private economy owes a tremendous
debt of gratitude to Representative Boggs and to Senator Long.
I am also extremely happy to be here among so many dis tinguished citizens of Louisiana, because it enables me to acknowledgE
the substantial contribution each
of you is making to the
soundne~
and stability of the nation's financial position by purchasing
the limit in "EI! and "if' Savings Bonds.
As you know, the Savings Bonds program is vital to the
success of our debt management policy.
The success of that policy
in turn, has helped this nation to achieve, and to maintain, a
record or price
country.
~.,~Itt~
stabili~gXceJJ~y any
other major industrt4t
Today, the wholesale price index is at virtually the
18S
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREA.SURY
LT -TH~ 11515!8" QOIsJ.AR laWllllz II 01
•
ROOSEVELT HOTEL, NEW ORLEANS, LOUISIANA,
THURSDAY, OCTOBER 22, 1964, 6:30 P.M.,~~
~------..........
I am always delighted to return to New Orleans, for I never
cease to be charmed by your city and overwhelmed by your hospi- ,
tality.
This visit gives me the opportunity to pay tribute to my
good friends Senator Long, and Congressmen Boggs and Hebert.
Hale Boggs was a tower oi strength in working out the details of
this year's tax reduction bill during the hearings before
Ways and Means Committee.
the
He also took a leading part in the
bitter and crucial floor fight that preceded final passage of the
p~
bill in the House.
--2 E IV H;[,
Russell Long piloted the bill through
I." _ -'
c. ., ; - /
I<
~-.
IIc
the
~
/.J.~~~uL.~ u.,*-A¢I
the ~t on the floor of the S...9
I can fairly say that if it had not been for the wisdoa ,f
TREASURY DEPARTMENT
Washington
FOR RELEASE: A. M. NEWSPAPERS
FRIDAY. OCTOBER 23, 1964
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT THE "LIMIT BUYER DINNER"
ROOSEVELT HOTEL, NEW ORLEANS, LOUISIANA,
THURSDAY, OCTOBER 22, 1964, 6:30 P.M., CST
I am always delighted to return to New Orleans, for I never
cease to be charmed by your city and overwhelmed by your hospitality.
This visit gives me the opportunity to pay tribute to my good
friends Senator Long, and Congressmen Boggs and Hebert. Hale Boggs
was a tower of strength in working out the details of this year's
tax reduction bill during the hearings before the Ways and Means
Committee. He also took a leading part in the bitter and crucial
floor fight that preceded final passage of the bill in the House.
Russell Long had an even more crucial position in the Senate.
He personally piloted the bill through the Senate Finance Committee,
and then led the successful, week-long fight on the floor of the
Senate. He accomplished both jobs with his usual consummate
skill.
I can fairly say that if it had not been for the wisdom of the
people of Louisiana in choosing these men to represent them in
Washington, the Nation would probably not have had a tax reduction
bill this year. Every American who believes in the importance of
the smooth functioning of our private economy owes a tremendous
debt of gratitude to Representative Boggs and to Senator Long.
I am also extremely happy to be here among so many distinguished
citizens of Louisiana, because it enables me to acknowledge the
substantial contribution each of you is making to the soundness and
stability of the nation's financial position by purchasing the
limit in "E" and "H" Savings Bonds.
As you know, the Savings Bonds program is vital to the success
of our debt management policy. The success of that policy, in
turn, has helped this nation to achieve, and to maintain, a
record of price stability unequalled by any other major industrialized
D-1384
- 2 country. Today, the wholesale price index is at virtually the
same level as it was six years ago. And the consumer price index
in August of this year showed an increase of only one percent for
the previous 12 months, a performance that has not been excelled
in any similar period in any year since 1955.
Our debt management policy has enabled us to finance our debt
in a conservative, non-inflationary manner. For the first time
since the war, this Administration has succeeded in lengthening the
average maturity of the entire marketable debt.
I mention that fact, not only because of its relevance tonight,
but because it reminds us that, like the unprecedented prosperity
we enjoy, and the marked progress we have made in reducing our
balance of payments deficit, in cutting unemployment, and in
expanding business investment and profit margins, our record of
price stability has not just happened.
On the contrary, when we assumed office nearly four years ago
the nation was in the throes of its fourth postwar recession.
Each of the three earlier recessions had been followed by
successively shorter and weaker recoveries, and the previous
recession had produced the largest peacetime budget deficit in our
nation's history. Unemployment was far too high. Business
investment had fallen far below the levels essential to
satisfactory economic growth and to the success of American
industry in the face of growing competition from abroad.
At the same time, a series of balance of payments deficits
which, on the basis of regular transactions, had averaged almost
$4 billion a year from 1958 through 1960 -- had touched off an
increasing loss of confidence in the dollar. These deficits had
brought with them an accelerating outflow of gold amounting to more
than $5 billion in the same three-year period -- an outflow that
reached a climax in the Fall of 1960, when speculators pushed the
price of gold in London up to $40 an ounce.
From the very outset, we were convinced -- and events have
more than upheld our conviction -- that a strong and growing
private economy was itself the essential solution, not only to
chronic unemployment, under-investment and budget deficits, but
to our balance of payments needs as well. We made a deliberate
decision, therefore, to reinvigorate the private sector of our
economy as the paramount force in achieving our national economic
goals.
We were also convinced that, in any program to restore the
vitality of the private economy~ the first step was to free
American enterprise from policies that had long restricted
investment. During the 1950's~ business fixed investment tended
to decline as a percentage of total national output. That decline
was permitted to occur at a time when other industrialized
countries were rapidly expanding their capital facilities and
replacing outmoded plant and equipment. As a result, those
countries became increasingly formidable competitors in
international markets.
We believed that the native ingenuity and drive of American
business -- if it were freed of excessive curbs upon expansion
and if it were actively encouraged by proper Government policies
could not only meet the challenge of foreign competition, but
also produce the jobs so badly needed here at home, We 9 therefore,
moved promptly to carry out two major fi~cal measures designed to
generate large and long overdue increases in the incentives for
private domestic investment in new plant' and equipment~
First, the Treasury Department completely revised
depreciation guidelines for tax purposes. That was the first
such revision in more than twenty years -- although those twenty
years had witnessed vast changes in industrial practice,
Second, a tax credit of seven per cent on new investment in
machinery and equipment was included as a key element in the
Revenue Act of 1962, and was further strengthened in the Revenue
Act of 1964.
Together, these measures have enhanced the profitability of
a typical investment in new equipment by more than 25 per cent.
Or, in terms of incentives to invest, their impact has been
equivalent to a reduction in the corporate profits tax from
52 to about 38 per cent.
Following these strong new steps to enlarge the capacity of
the private economy, we took the most vigorous and forward-looking
step of all in the Revenue Act of 1964 -- the largest tax cut in
the nation's history, amounting to $14 billion at next year's
~vels of income.
In 1965 -- when it will be fully effective
that measure will slice more than $11.3 billion from the tax load
of individual taxpayers. In other words, it will mean an extra
$30 million a day available in the private economy for boosting
the purchasing and inves ting power of the nation's taxpayers.
That massive reduction in the individual tax load will be
complemented by a $2.7 billion cut in corporate taxes, which -combined with an estimated cut of roughly $3 billion in 1965
business taxes as a result of the earlier tax measures -- will
mean a total reduction in 1965 business taxes of more than
$5-1 /2 bill ion.
We have accompanied these dramatic moves to bolster the
private sector of our economy with a rigorous control over
government expenditures that has been unsurpassed in recent
memory.
At the beginning of 1961, we had no illusions that expenditure
control would be easy. It never is. We also knew that a large
rise in Government outlays for defense and space was inevitable,
and that we had to expect continued moderate increases in the
interest cost on the national debt. Because of those unavoidable
increases for defense, space, and debt service, we resolved to
exercise the closest control over all other budget costs.
And we have kept faith with that resolve, as one simple
comparison makes supremely clear: Over the four fiscal years 1961
through 1965, expenditure increases, incurred and planned, on all
Federal budget items other than defense, space, and interest, will
have been held to a total of less than $4-1/2 billion. In
comparison, the best efforts of the preceding administration -and I can vouch for the fact that the will to hold down
expenditures was there -- resulted in a full $6 billion increase
in these same items during the 1957-61 period.
The plain fact is that the need for strict control over
Government expenditures has never been met with greater effort,
or better result, than over the past four years. And that effort
has been intensified under President Johnson. Let me cite just
a few examp Ie s :
At the end of fiscal 1964 on June 30th last, actual
expenditures for that year totaled $97.7 billion. That represented
a cut of more than $1 billion from the original 1964 budget estimate
made in January 1963 -- and a cut of $700 million from the revised
estimate made in January 1964.
- 5 The latest estimates of expenditures for fiscal 1965, published
last May, total only $97.3 billion -- $600 million less than the
original estimate in January 1964. This figure is also $400
million less than actual expenditures for the last fiscal year -only the second time in 9 years that a Federal budget calls for
a decrease, and not an increase in government spending.
In every phase of Government activity today, you see similar
evidence of a most intense and unrelenting drive for frugality.
You see it, for example, in the fact that Federal civilian
employment has been effectively reduced. Last June 30, such
employment totaled only 2,469,000 -- more than 100,000 under the
original budget estimate in January 1963, more than 43,000 under
the revised estimate in January 1964, 21,000 less than actual
employment a year earlier, and 15,000 less than actual employment
two years earlier. At the end of September, Federal civilian
employment was 23,741 below September 1963, and lower than at any
time in the last two and a half years. And Federal civilian
employment ceilings are now being lowered even more: For
instance the ceiling for the Department of Defense has just been
cut by another 5,367 employees.
These reductions in Federal employment have been coupled
with a comprehensive, sustained -- and equally impressive -program for greater effciency and productivity on the part of
every Federal employee and every Federal department. The cost
reduction program of the Department of Defense last year produced
identifiable and verified savings of $2.8 billion, more than
sixty per cent of its ultimate cost reduction goal of $4.6 billion
annually. In my own Treasury Department, there has been an active
Management Improvement Program on the books for the pas t 18 years.
Yet last year saw the highest annual recurring savings ever
~hieved under this program.
Moreover, fiscal 1962 and 1963 were
the third and fourth best years of the entire program. Our four
~ar total savings exceed those of any earlier four year period
~ almost 50 per cent.
These four years of frugality throughout the Federal government
have, I repeat, been four years of greater prosperity for the
priVate economy -- a prosperity deliberately fostered by Government
policy. The fruits of that policy are as evident -- and abundant
in our domestic economy today as they are in our Federal budget.
From the first quarter t)1 1961 to the third quarter of 1964,
our Gross National Product valued in constant dollars has risen
by $100 billion -- an annual rate of increase in real terms of
about 5.2 per cent. The Federa 1 Reserve Board's index of
~dustrial production has risen even more sharply.
By September
of this year, the produc tion index was 20 percent above its
February 1961 level -- an annual rate of increase of 7.4 percent.
Corporate earnings before tax have risen sharply, reaching
m annual rate of $57.3 billion for the first half of this year
$7.3 billion higher than the first half of last year and $15.7
billion, or 38 per cent, higher than during the first half of 1961.
With tax liabilities in the first half reflecting the new reduced
corporate rates, profits after tax ran at the rate of $31.6
billion -- 21.1 per cent higher than in the same period in 1961.
Also responding in part to the tax cut, plant and equipment
~penditures for the full year 1964 are expected to exceed $44
billion -- 13 per cent more than in 1963.
Unemployment, while still too high, fell to 5.1 per cent in
the third quarter of this year, down from the 5.4 per cent level
of the firs t ha lf of the year, from the 5.6 to 5. 7 per cent levels
of 1962 and 1963, and from a recession high of 7 per cent in
early 1961.
Hand-in-hand with this large and steady reduction in the
unemployment rate, there has been a large and steady rise in real
take-home pay for the worker -- evidenced by the fact that, after
taxes and full adjustment for any and all price increases, the
average weekly take~home pay for a wage-earner with three
dependents is today 11' per cent larger than it was in early 1961.
These gains have been accomplished in an environment of price
stability. That price stability is now beginning to pay increasing
dividends in terms of heightened competitiveness in our export
industries. Our commercial trade balance -- instead of
deteriorating in response to the sustained gains in domestic
production, as many had feared -- has recently improved. In the
year ending las t June, our commerc ia 1 trade surplus grew by
$1.4 billion beyond the level of the previous twelve months. Our
commercial exports (not counting those financed by government aid
and credits) increased by about 16 per cent for the year -c~mpared to an import growth of only about 9 per cent.
The trade
hgures so far available through the summer months show that our
total exports have continued to rise and that the growth in our
imports has rema ined modera te in re 1a t ion to our expanding GNP.
Overall, for the flscal yedr ending last June, our balance
of payments deficit on regular transactions was only $1. 7
billion -- well under half the total for the preceding twelve
months and by far the most favorable since 1957. This sharp
reduction in our payments deficit has helped generate an even more
striking about~face in our gold outflows. In each of the past two
months, and for the first time since the 1957 Suez crisis, our
total gold holdings have actually recorded a modest gain instead
of a substantial loss over the preceding twelve months.
This excellent progress in. our international accounts has
brought our goal of full balance well within sight -- and can
bring it well within our grasp if both the private economy and
Government not only continue, but intensify, their efforts.
Thus, in our balance of payments, in our budget, and in our
domestic economy, the outlook today is far different than it was
four years ago. That outlook == like our unparalleled progress
during those four years =~ has had its birth and its upbringing
in reasonable, moderate. and flexible economic policies that
rejected demands to purchase either domestic economic growth or
balance in our international payments at the expense of the
other -- policies that followed a wise and prudent course of
accompanying restraint in government spending with an expansion
in private spending power == policies that sought to promote
economic growth by promoting economic freedom.
If we continue to follow those policies, we can expect
continued progress on all economic fronts. We can also look
forward to cuts in our excise taxes next year ~- based upon the
thorough and systematic studies that have now been underway for
many months
0
In the more di stant futtrrp-. we can] oak forward as well to
further income tax C'uts~~" dep<"fldlng upon the state of our economy
~d of our Federal hu~get
. the ~£a~er future, we shall be
o
;u:jr.,'~r t!ong's interesting new tax
giving our full attent10n tc
proposal, which would offer aiD alternate, and far lower, tax rate
schedule to those whlJ would he ~Jil1:ing to forego most of the
deductions and other exemption~ from tax that are available under
present law. If it proves feasible, this optional plan could be an
important first step toward 8. mOBt desl.rable goal: Much lower tax
rates under a simpler and more equttable tax code.
The economic promise of the coming years is indeed great. And
we shall realize it, if only we continue to follow and build upon
the policies that have proved themselves so successful over the past
four years.
000
1
04
, ,
- zz. \':htLt: I
c.::.n bo
1::.Ot~
&nl
saying is that I am confident that this challenge
:rod that it can be mat while reaching new peaks of
pro~p:arity
at home.
i.:;.l~o
t~t
hope
we
That confidence does not arise out of any
C4n
simply ride on the momentum of the past
mto a new era of "ppinle.ss prosperity. II
Rather. it arises
fr~
, J *' ,
tile fact \;e have learned much in recent years about how to use cd
blend our varied tools of Government policy in
'Within a
fr~ork
neli
ways" always
of free markets and fiscal responsibility.
It
crises because once again our system of free private enterprise
r~s deuo~~trated
il.'l
its enormous capacity for growth and innovation
a climate of price stability and renewed incentives.
These are'
,?~ $ /? I" ( ( /
tho solid building blocks out of which we can ,fashion a better
I~
;C~l:Ure
for all America.
000
- 21 ..
c~ C:l
to
t:r...::;ual combination of temporary factors t only to gtve way
~ co=.~ider3bly
larger deficit in the second <iU4rter.
fic.:re!l for the third
quar-~r,
'rbs late.t
while :still fragmentary. iuldicate
t:1.:.i: tha deficit will fall between those extremes, and ccmf1m the
prczpccts of Dubstcntial improvement for 1964 as a Whole. Looked
If.. ..
I
.:It
.~...
,> • •
in tb.e lar.aar view we
~l',
j'."(
,l.. 1'-
l,...~.
(1\
~
real satisfaction fr0r4, ~ sub-
stcutiul irz2rovement in our international payments that baa
c:la=~ctcrized
I
over..
jo:"
Cll.~
the past 15 conths.
not suggesting that our balalce of payments problem is
It clearly is not.
r~n"4l1ns
ahead..
In some ways. the hardest part of the
Moreover ~ in a world of convertible currenci8s
tilth trade and C2lpital free to flow across national boundarie., it
\:i11 'Gover c::dn be possible to take the relaxed attitude toward
'" -;.'
~~c:r.ution.:ll payments that
~:nca
World War
characterized much of the perlod
I~.
~tl_
- 20!!:)Ortclt ~"'Vin.gs
19'_,
have developed in other sectors of our inter·
costa of cur «lid and defense programs had been trfJzmed back by
l::;ujlly $500 cil110n from their 1962 levels.
Qlz~cly
sC:1cduled will next year bring those savings to approximate:
$1 billion.
y.2!al'" S
Further reduct1cma
Tua dangerous threat to the dollar arising from last
accolerating outflow of portfolio capital has been succeasfu:
'brclted throur;h the Interest Equalization Tax..
l1.CC~Z$ary.
As anticipated, that
but temporary. measure is providing the breathing time
wa need until European capital markets are more fully developed aDd
our other
Tile
pc;y~nts
to
t.1~nth
~~:?~o~
~ures
f~vor~ble
have had time to become fully effective.
influence of these factors em our balance of
is frequently obscured by erratic fluctuations from 1DOIlth
sd
~er
to quarter.
Far example, our payments deficit
clIruptly during the first quarter of th1.a year in response
- 19 tJ c.:intain a relationship bettl1een wages, productivity t and prices
t:~t
c.:.n permit us to prolong our excellent record of cost and
p1:~.ce
stability.
For price stability today is
CCOOCQY.
\;3
~e:t"e.tive J
not only to our domes
but to our balance of p,aymc:1t£l position.
In the past year
have begun to see clear evidence that price stability is gradual
mproving
OU1:'
international compct1tiv3 position.
During f1scal ye
1964 our cOrJmorcial exports rose by 16'7., far exceeding tile 94 rise
in ir:.:ports that has bGen a natural consequence of our rising levels
of business activity.
As a result. our commercial trada balance
increased by $1.4 billion. helping to cut
OUT
balance of payments
d.:ilficit avar the same period more than in half.
rc=on't
st.~er
months cur exports
re~~ched
And during the
a naw peak, despite
~'(pect
.... .:.;.:;:Lincs in grain shipments from th3 exceptionally high levels of
Important savings
198
- 18 to uny new difficulties in the balance of payments that may re~ira A
procpt and effective response.
Utport~ce
of the tax reduction progranl lies in part in the fact
f(
th.at it
to
d~al
To the contrary, the
fI'';
.(
haitlee& the monetary a.uthorities
appropriatoly with such
in a stronger
cont~~encies.
~)s1t1on
should they arise.
As our economy moves ahead ovar the cO!'lizlg weeks a.nd luonths.
the monecary authorities will ccrtaLily be vatchiag closely for
evidence. either in firulncial flows or elsewhel.'"C, of forces th.at
could develop into a threat to either price stability or orderly
expaLlsion.
But we must not asS\.lIOO that the maintenance of price
sta~ility
is the responsibility of the monetary authorities alone.
~'or
the most difficult problem -- and one 'olith l-.7h1ch the
monet~LrY
authorities are ill.equipped to deal -- would be spreading wage and
cost })ressures that industry could not absorb from rising productiv
~~~~
the
h~aviest
responsibility rests on both industry and labor
to maintain a
199
- 17 -
c:: credit miGht. it 1s true, have reduced the outflow of short-term
f\;::cl$, cd attracted some money from £broad.
~vo
That approach would
had merit if our deficit had resulted from the class:ic problem
of internal inflation with shortages of labor and indusa'ial
But that was clearly not the c.o.so.
C.:l:;?3.city.
The bastc solution
to our balance of payments problem lay elsewhere -- in spurring
g.zd.t'.LS in efficiency of operation and in
~rov1ng
the investmcant
cl:im.ate so that cur industry could better tta position in world
rr..;;lrkets.
In these circumstances tight money, while pE.'l:'baps per-
mittins us briefly to balance our external accounts, would have
l;::-ovided only a fleeting illusion of progress.
~urposes
By working at
eros.
to our fundamental needs to stimulate investment and pro-
C:i.:;~tivity.
it would surely have been a,elf-defeating.
Zaese judsments do not in ;my way 1:mply that monetary policy
c~culd not be sensitive both to inflationary pressures at home
to any uew
and
- 16 -
c ::.:.:.:.. . c::.:r. z ca.rketab1e Treasury securitios maturing in more than five
~.':;.:.r~
t::a
h.....--vc increased by more than $26 billion J an smount e."tcaedlng
~.t:Lre
growth in the public debt.
l'n effect, our entire
Cumlllative budget deficit has been f:lnanced at long-term, drawing
'C;?C.'!l
the
~.:lv1ngs
generated by a grmdng economy in ways that will
not co."ltrib-&:t& to inflationary presG'ures.
i~cre.'lsQ
This bas meant
al,
in the average life of tho llat10nal debt from four year.
od au months in
,.
3~.
I
1961, to !:ive years cmd threae month$
'
credit to f:tnance the Government, coc:lOOrc1al bank holdings of
J:'cclartill debt have declined.
'l'~i'ing
tc.at
a broad look at the past four years. I .am persuaded
~Gtary
policy has made as great a contribution to the solutil
0.2 om: balance of payments problem as it appropriately could have
done.
A
severe tightening
201
- 15 In both respects, ourparfoncance bas been uamatched b)
~ey &\..~ply
since 1960 have been rOUlt1vely
vol1 below the increase in production.
b~n ~"Pandlng
:-~eds.
mo~at
-
at
4
rate
Corporate cash flow has
rapidly, but we have investment and working capital
As a result. aggregate
corpor~te
balance sheets do not re-
fleet .em .2Cc:ut:JUlation of liquid as;sots that migiht fuel an U1lCOntrol·
l.:..ble burst of sPe:ldini.
And sWvlly J but lloeiceably. bank liqu1dit:
han been reduced.,
in rcstrueturins the national debt.
S1.~
early 1961 out-
- 14 r.;~=.:.inin3 ~t
~-:::!:.=
capacity.
202
A w1111n&'1less to use fiscal stimulus
one set of conditions must be matched by a
cccz::pt restrain:: 111"l1en needed.
wil1in~ss
to
I need llo't emphasize to this audience
\.;:",ich is so wall schooled in the principle and practice of flulble
DC;:;Ct:ary
O""~
policies t the daDgers of a rigid commitment to
~Lrt1cular
fact...."'%" that m'\lst always receive great weight in cur
policy decisions is the impera.tive need to maintain price stability.
t-lith industrial prices today averasing almost precisely the
aame
.as in 1958. we can look back on the longest period of sustained
s:ability 1.D
~y
decades.
lA.cnufacturiug labo,r costs per unit of
output have actually declined dUring tha current expansion -
a
:.:cZlcctiou of our rapid gains in productivity and responsible wage
bargaining.
In both respect.,
203
- 13 During the coming session of Congress, we should undertake thl
next priority item on our agenda -- an overhauling of the crazy qu
of excise taxes that we have inherited in zood part from past etlir,
eencies.
The extensive studies thOlt are needed to lay a responsib:
gro~~Gwork
for such action have been
undc~~ay
far some ttme.
We must guard, however, agairuilt nllowing the first glow of
su.ccC!ss to distort the developing coniSens~ on the respons ible usc
fiscal policy into
\-7e
s~-nply
somethin~
quite different.
In thu unc,ertain w(
caDZlot responsibly schedule fixed tax reduction for yearl
ahead in blithe ignorance of, or unconcern for, expenditure
th~
state of the economy.
nee~ I
Changes in our tax system must be recogI
for what they are -- strong
medicine~
to be prescribed only after
I
rues t pains tald.ng and earerul diagnos is.
A budget deficit acceptable under conditions of excessive un~ploymant
would be dangerously inflationary when production is
straining at capacity,
204
- 12 ~.J C::~tly w1d-~
~=~:d
the tax base. with tbB result that our revenues
rice daspite
T~t
~;e
is not simply theory.
by ACtual exporience.
tM~~.ded tax
cv·~tU!ll
reduced rates.
It is
'nOW
being confil."Uled every de
With continued expenditure control, and an
base, we can look forward to the steady reduc:tion and
elim"...nation of our budgetary deficit in a vilorously ex-
T'nis bold and succ:essful usa of fiscal policy has important
ir.:l'li<U.ttiona for the future.
There is now a growing naticmsl
COl1Se
tt..:Lt the more active use of fisc31 policy. together with respons1bl~
clebt
~Ctlant:
cc~ioving
~:;~ding
·::th
and monetary policies) has a key role to play in
our econo:nic objectives.
?:hare is also a growing under-
that a more flexible fiscal policy 'DOed not be associated
lo~e
spending practices t and that the added reve.:ruea yielded
by ecc:lowic growth can offer further opportunitiea for tax reducti01
During the eomfi
- 11 effective tax and fiscal policy.
Tho price is acceptable
01
:"'::;:::i.!.'::e t t.."'llder existing conditions end with prudEnt mallsgement of tl
C:;:;::-t t those deficits do not pose an inflationary probleUJ.
~~tc.:;.d.
'Illey are
a transitional step toward our basic goal of • balanced
Tho choice we faced was not one between balanced budgets and tl
rcd-uction.
An economy prone to recession and slow growth is also pl
to deficits It for we cannot meet
c;lu:-v.::i!;en tax base.
0Ul:'
,essential spending needs from a
We learned that lesson the hard way during the
ltlttcz part of the 1950' s -
a lesson highlighted by the recou-d $12
b£.llioa deficit that followed the 1958 recession.
The ironic. but
plain, fact was that our excessively high bet rates were themselves
ccr.'J.tributing to the sluggishness of the economy.
Cue£-ully designed tax reduction offered the moat promising wal
;,..-.; of t4~t impasse.
By expanding incomes and profits t it promised
to greatly
videa
206
- 10 c'::Ji=.:l~la
-- because it wns vital to our payments effort that we be
C',,::: ~~-:J.oy
It3rket rates roughly in equilibrium with those abroad.
cC~1sistent:
Bu
with that constraint, we developed techniques to assure a
cr.::?la £10"'4 of credit to lonS-term borrowers.
That was. of coul'se.
a procezs in which the banking cormnu1l1ty played an essential role b,
~dQ
bo
available to businesses t homebuyers. and state and local
vIe could not, however J meet our objectives with monetary pol ie,
.:ll~a.
i"aera was also a compelling need to cut through the inhibit!
lc~llcr~'Y J
@d maze of detail that for much too long bad blocked lore
.:codod tax reduction and reform.
Bccause of tax reduction t we have had temporarily to acceptsom
-.
-..
..
~
h:..vo
1c.rzar budgetary deficits tlwl we vould otherwisa have hael. We
~ot
sought
thO$G
deficits.
They are the price we had to pay fo
timely t effective
207
- 9 c
~;:oportion
t~a
end of
£.Z the
of IDtP -
a realistic meuures of its burden -- will b
this fiscal year have
droppe~
back to the levels prevail
ve.ry bezinnins of World War II.
Tnesa figul:'es also underscore the fact that the baa 1c economic
str&teay of this Administration Ius been to look to the private
&ector of the economy as the main enginE! for expanaion.
Govel.'llmQlt
h:ul hsd an essential rola to play in this process. but this role wa
not Gimj?ly to seck increases in its
p'Z'o-V'ida. through its economic and
C".Wn
spending.
f~c1al
climate for business 1nvestme-nt end
pr1,,~ate
Rather. it was t
policies. a favorable
spending.
It was to pI
mota continued increases in efficiency and productivit.y .both to sustained domestic growth sd to our export effort.
80 esSC11
And a1
this luld to be done within a fremework of price stability.
l<:o:lctarJ and debt management policies could do part of the jot
~~
ruled out the extrCt.laS of easy
~ey
..- wen had they beeD othel
208
-&erq)lor-cnt, as a proportion of the total work force, has dropped to
its lowest point s inee 1941.
Fiscal responsibility does not imply that m:,gont national necda
muzt go unsatisfied.
l~itless
But it does require, in the faco of almost
pressures for new and
eA~andad
programs. a zealous and
nover-ending search for economies in less urgent areas.
The
Government sector of the 'economy M'lXst be held to a size where the
burdell of taxes and debt can be cal."X'ied by a groving economy, "ith·
out inflationary
prcsa~es.
By this test, too, the record is clear.
Durin& the current
fiscal yeer, despite the requirements of defense and space. budget
expenditures will be lower relative to
any ti.m.s in the past 13 years.
?~c-empted by
c~11or
GrOSG
l{ational Product than
Tne share of total personal income
tho Federal individual income tax will decline to 9~
than in any fiscal year since 1951.
And the Federal debt
a proportion of
4l
- 7 c::~
209
:'957-51 period whcm the previous Adl:linistratiou. was dcrlng ita
:?o2."mitted a substantial t but non-recurring. cut 111 defense spending
J~d
this year'. Teductton is being accomplished despite the half
bil11o~
dolla1- cost of the long overdua adjustment in Federal
cc.laries. the new anti-poverty progrsm. h1ghor interest cost' t and
other built-in increases.
This accomplishment is possible only because of a sustained dr:
for budgetary economies that, for sheer intensity and effectiveness
exceeds anything within my experience in Govel."'Ilm6tlt.
One result 11
that Federal employment bas been cut below the level at the end of
fi~~l
19S2, two aud a quarter years ago.
In fact. Federal civ11ial
employment,
- 6 -
the past four years -- expenditures for 1965 are expected to be
between $15 and $16 billion higher than in 1961.
But approximatel
$5 billion of the rise from the fiscal 1961 to the fiscal 1965
bud~et
is accounted for by the urgeut national need to maintain
defenses second to none.
o~ lOOre than
Our space program. has also seen an
$4 billion -- as it had to if we were not
that new frontier to the Soviets.
1ncre~
to abandon
And more than $2 billion is
accounted for by larger interest payments on the Fedoral debt.
The true test of our record in expenditure control lies not
in these items but in
~pe.llditures J
what has happened to all other governmental
including welfare programs. domestic housekeeping •
., /,,/
r
(r
/ I
(-,Ii
i
,
~
(
,_I'
{!
f.
I,
' I
'
ordinary civilian serwi1ces'Aand all the test.
,I
Annual expenditures
on all of these programs combined have grown. over the four years.
{"l
~ f /
.t1'-+,
_'
,t ' -,' r 'r (_ i
fi::;c~l 1961-55. by (iot
c-;:~nt:y-five
1'-""
quit.i $4-1/2 billion.
"
That is more than
percent less than the increase in these same programs d
the 1957-61 period
-s~:.: ~c:.~l
end external circumstances.
~~~ Do tl~
211
This blend t as you know t haa
and indispensable role for fiscal policy, complementing
cd reinforcing more traditional Il1011Ctary policies.
c,:l
Building
th1J; recent experience is the best way to cope promptly and
effectively with new eballenges
DO
matter· from what direction they
Let ma, hO"'lIcver, make one point crystal clear. An active,
flexible fUC41 policy should not, and does Dot ~ require any .aerifi
o~ ~1.a
basic princ1ples of fiscal responsibility.
1 beUeve that
tllo record of these recent yea'f"s amply demonstrates that point.
rrcside:lt Johnson has given p~rscnal
\1:i,Z:1
and continues to give -- his
attention to making certain that tax reduction is coupled
the strictest vigllance in assuring
&
full dollar of value for
It is true th.t our budget baa increased appreciably ciuring
the palt fOUl
- 4t~ p~c"
212
the highest premium on flexibility in the use of all our
c=cnomic policy tools.
We long ago leamed that timely shifts in monetary poltcyare
cs~cntial
both to sustain
es they emerge.
no
tlatter
g~owth
and to combat inflationary excelS.
But experience bas also shown that mone.tary policy
how fl.exlbly and intelligently implemented -
itself. achieve our UlUltiple goals.
cannot. by
Wo cannot insist that large
c1'l:,ngas in interest rates and aredlt availability must carry the
full burden of stabilizing the domestic economy. and at the same
tim3 rely on monetary pollcy as the primary means of bringing
b.a~""lce
to our international acCOtmts.
Nor can we expect monetarY
l;olicy to do either of those jobs effectively if. by neglect or
t:.lsdirection J we allow other policy tools to operate at cross purpc
Cur needs require -
and have received -- a coord1n~ted blend
of financial and economic policies that cau be adapted to both our
213
C:;;=i':!3 the last fiscal year was cut to $1.7 billion. well under hali
t.~G
of
1958-1960 average.
f=cssura on our gold stock.
~~ths
Confidence in the dollar baa reduced the
As a result. in each of the past two
our total gold stock has actually shown a slight
over the level of the preceding year '~,
iJ;,
J ..c....t.-
""-----_._--
,'I
('
•
'-
-
.""
(!
i
inereas~
the first time that.au
,
•
.h.i.?penecl;~incG the Suez crisis in 1957.
These gains, together with the economic gains we have achieved
~l: h~.
make an impressive record.
But cont1nued prosperity at
ho:aa a:ld further progress abroad are DOt, and~can'neverbe. automat
So today our concern must focus on. the challenges that atill lie
~d.
Wa cannot. of course, now anticipate every possible threat to
c\;~ble
y.::.::r3.
and orderly economic growth that l%3y arise over the coming
Tile complexity of our ow economy. an4 tha impact of aventl
1:1 ••• , othar
part~of this
1IW1ftly chaDiiDI world, will ccatinUe
to place tb
z;;;~ y~~rs, the
c~~cd
f~CQ
,increase in our annual productiOD alone hal ex-
the total Gross National Product of any other Dation of the
world.
c..,;7~~a3e
In more personal terms, disposable income of the
Acerlcall household. when measured in constant dollar.. baa
l:iccn by well over $700 during the last four yeus -- an i.DcnaH
At the same time. canpany after company 18 %eporttns record
~rof:tts ~d
c~o..-.-ply
enlarged capital spending programs.
It is clear that
higher returns on invested capital are furnisbing
DeW
and
ii.1.vc.ctzm1t which will provide new jobs. 1ucrea.sa productivity, and
G7Jr
futuro growth.
/;.broad. we have made progress in closing the deficit in our
"- _.-:.-.ca of payments t assuring a stable dollar and. on tt-..t aol:l.cl
~o,
building a stronger payments .ystem.
Our payments claf1ctt
215
lW-fARKS OF T'dE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE
THE
AMERICA..~
BANKERS ASSOCIATION
90Ttl Ah"NtL1\L COUVENTION
IN ML.~'1I BEACH, FLORIDA
TUESDAY. OCTOBER 27 t 1964 t 11: 00 A.M.. EST
Tots is the third time in the past four years that 1 haw had
t::-~
privilege of appearing before you to discus. Helenal economic
Durltag those years the United States baa faced serious
policies.
C!COl.1..ot'!1ic
challenges both at home and abroad.
At hane the central challenge. after yearaof' recunlDa
rc;:cssion and slow growth, was to bring our economic performance
closer to our unmatchec1 potential.
'There 18
110
better measure of our auecess than the 44 mcmtbl
of unbroken business advance that the nation has thus far acbieved •
a record of recovery unexcelled 10 our peacetime history.
That advance has added more than $100 b11110n in real terms -
- -.:
ro~zhly
201 -
to cur annual output.
In the apace of 1... thaD
four
yean,
TREASURY DEPARTMENT
Washington
-
FOR RELEASE:
UPON DELIVERY
REMARKS OF THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE
THE AMERICAN BANKERS ASSOCIATION
90TH ANNUAL CONVENTION
IN MIAMI BEACH, FLORIDA
TUESDAY, OCTOBER 27, 1964, 11:00 A.M., EST
This is the third time in the past four years that I have had
the privilege of appearing before you to discuss national economic
policies. During those years the United States has faced serious
economic challenges both at home and abroad.
At home the central challenge, after years of recurring
recession and slow growth, was to bring our economic performance
closer to our unmatched potential.
There is no better measure of our success than the 44 months
of unbroken business advance that the nation has thus far achieved
a record of recovery unexcelled in our peacetime history.
That advance has added more than $100 billion in real terms -or roughly 20 percent -- to our annual output. In the space of
less than four years, the increase in our annual production alone has
exceeded the total Gross National Product of any other nation of
ilie free world. In more personal terms, disposable income of the
average American household, when measured in constant dollars, has
risen by well over $700 during the last four years -- an increase
greater than that during the preceding eight years.
At the same time, company after company is reporting record
profits and enlarged capital spending programs. It is clear that
sharply higher returns on invested capital are furnishing new and
stronger incentives for investment in modern plant and equipment -investment which will provide new jobs, increase productivity, and
spur future growth.
Abroad, we have made progress in closing the deficit in our
balance of payments, assuring a stable dollar and, on that solid
base, bUilding 8. stronger payments system. Our payments deficit
D-1385
- 2 during the last fiscal year was cut to $1.7 billion, well under half
of the 1958-1960 average. Confidence in the dollar has reduced the
pressure on our gold stock. As a result, in each of the past two
months our total gold stock has actually shown a slight increase
over the level of the preceding year -- the first time that we have
seen a year to year increase in our gold stock since the Suez crisis
in 1957.
These gains, together with the economic gains we have achieved
at home, make an impressive record. But continued prosperity at
home and further progress abroad are not, and never can be,
automatic. So today our concern must focus on the challenges that
still lie ahead.
We cannot, of course, now anticipate every possible threat to
stable and orderly economic growth that may arise over the coming
years. The complexity of our own economy, and the impact of
events in other parts of this swiftly changing world, will continue
to place the highest premium on flexibility in the use of all our
economic policy tools.
We long ago learned that timely shifts in monetary policy are
essential both to sustain growth and to combat inflationary excesses
as they emerge. But experience has also shown that monetary
policy -- no matter how flexibly and intelligently implemented -cannot, by itself, achieve our multiple goals. We cannot insist
that large changes in interest rates and credit availability must
carry the full burden of stabilizing the domestic economy, and at
the same time rely on monetary policy as the primary means of bringing
balance to our international accounts. Nor can we expect monetary
policy to do either of those jobs effectively if, by neglect or
misdirection, we allow other policy tools to operate at cross
purposes.
Our needs require -- and have received -- a coordinated
blend of financial and economic policies that can be adapted to
both our internal and external circumstances. This blend, as you
~~, has meant a new and indispensable role for fiscal policy,
complementing and reinforcing more traditional monetary policies.
Building on this recent experience is the best way to cope promptly
and effectively with new challenges no matter from what direction
they Come.
- 3 Let me, however, make one point crystal clear. An actL,c,
flexible fiscal policy should not, and does not, require any
sacrifice of the basic principles of fiscal responsibility. I
believe that the record of these recent years amply demonstrates
that point.
President Johnson has given -- and continues to give -- his
personal attention to making certain that tax reduction is coupled
with the strictest vigilance in assuring a full dollar of value
for every dollar spent.
It is true that our budget has increased appreciably during
the past four years -- expenditures for 1965 are expected to be
between $15 and $16 billion higher than in 1961. But
$5 billion of the rise from the fiscal 1961 to the fiscal 1965
budget is accounted for by the urgent national need to maintain
defenses second to none. Our space program has also seen an
increase of more than $4 billion -- as it had to if we were not
to abandon that new frontier to the Soviets. And more than $2
billion is accounted for by larger interest payments on the Federal
debt.
The true test of our record in expenditure control lies not in
these items but in what has happened to all other governmental
expenditures, including welfare programs, domestic housekeeping,
ordinary civilian services, agricultural payments and all the rest.
Annual expenditures on all of these programs combined have grown, over
the four years, fiscal 1961-65, by something less than $4-1/2
billion. That figure is more than twenty-five percent less than the
increase in these same programs during the 1957-61 period when the
previous Administration was doing its level best to hold down
unnecessary expenditures. This 25 percent improvement is the fair
measure of the effectiveness of the current Administration's cost
control effort over the past four years.
During the current fiscal year we will achieve a year-to-year
decline in total expenditures for only the second time since the end
of the Korean War permitted a substantial, but non-recurring, cut in
defense spending. And this year's reduction is being accomplished
despite the half billion dollar cost of the long overdue
adjustment in Federal salaries, the new anti-poverty program,
higher interest costs, and other built-in increases.
This accomplishment is possible only because of a sustained
drive for budgetary economies that, for sheer intensity and
effectiveness, exceeds anything within my experience in Government.
One result is that Federal employment has been cut below the
level at the end of fiscal 1962, two and a quarter years ago.
1
(1
- 4 In fact, Federal civilian employment, as a proportion of the total
national work force, has dropped to its lowest point since 1941.
Fiscal responsibility does not imply that urgent national
needs must go unsatisfied. But it does require, in the face of
almost limitless pressures for new and expanded programs, a
zealous and never-ending search for economies in less urgent areas.
The Government sector of the economy must be held to a size
where the burden of taxes and debt can be carried by a growing
economy, without inflationary pressures.
By this test, too, the record is clear. During the current
fiscal year, despi te the requ irements of defense and space.
budget expenditures will be lower relative to our Groas National
Product than at any time in the past 13 years. The share of total
personal income pre-empted by the Federal individual income tax
will decline to 9 percent -- smaller than in any fiscal year
since 1951. And the Federal debt as a proportion of GNP -- a
realistic measures of its burden -- will,by the end of this
fiscal year,have dropped back to the levels prevailing at the
very beginning of World War II.
These figures also underscore the fact that the basic economic
strategy of this Administration has been to look to the private
sector of the economy as the main engine for expansion. Government
~s had an essential role to play in this process, but this role
was not simply to seek increases in its own spending. Rather, it
was to provide, through its economic and financial policies, a
favorable climate for business investment and private spending.
It was to promote continued increases in efficiency and
productivity -- so essential both to sustained domestic growth
and to our export effort. And all of this had to be done within
a framework of price stability.
Monetary and debt management policies could do part of the job.
We ruled out the extremes of easy money -- even had they been
otherwise desirable -- because it was vital to our payments effort
that we keep our money market rates roughly in equilibrium with
those abroad. But consistent with that constraint, we developed
techniques to assure an ample flow of credit to long-term
borrowers. That was, of course, a process in which the banking
community played an essential role by aggressively seeking out
and mobilizing funds tha t could, in turn, be made ava ilable to
businesses, homebuyers, and state and local governments.
- 5 -
We could not, however, meet our objectives with monetary
policy alone. There was also a compelling need to cut through
the inhibitions, lethargy, and maze of detail that for much too
long had blocked sorely needed tax reduction and reform.
Because of tax reduction, we have had temporarily to accept
somewhat larger budgetary deficits than we would otherwise have
had. We have not sought those deficits. They are the price we
had to pay for timely, effective tax and fiscal policy. The price
is acceptable only because, under existing conditions and with
prudent management of the debt, those deficits do not pose an
inflationary problem. They are, instead, a transitional step
t~ard our basis goal of a balanced budget in a healthy, full
employment economy.
The choice we faced was not one between balanced budgets
and tax reduction. An economy prone to recession and slow growth
is also prone to deficits, for we cannot meet our essential
spending needs from a shrunken tax base. We learned that lesson the
hard way during the latter part of the 1950's -- a lesson
highlighted by the record $12 billion deficit that followed the
1958 recession. The i.l(mic, hut pLJin, fact was that our
excessively high tax r~tes were themselves contributing to the
sluggishness of the economy.
Carefully designed tax reduction offered the most prom1s1ng
way out of that impasse. By expanding incomes and profits, it
promised to greatly widen the tax base, with the result that our
revenues would rise despite the reduced rates.
That is not simply theory. It is now being confirmed every
day by actual experience. With continued expenditure control,
and an expanded tax base, we L (.in look forward to the steady
uduction and eventual eliminarion of our budgetary deficit in a
vigorous ly expand ing economy.
This bold ao,d success~l1! \. :se of fiscal policy has important
implications for the future. There is now a growing national
consensus that the more ClclJYC use of fiscal policy, together
with responsible debt management and monetary policies, has a key
role to play in achieving our economic objectives. There is also
a growing understanding that a more flexible fiscal policy need
not be aS80ciated with loose spending practices, and that the added
revenues yielded by econom1C growth can offer further opportunities
for tax reduction.
- 6 -
During the coming session of Congress, we should undertake
the next priority item on our agenda -- an overhauling of the
crazy quilt of excise taxes that we have inherited in good part
from past emergencies. The extensive studies that are needed to
lay a responsible groundwork for such action have been underway
for some time.
We must guard, however, against allowing the first glow of
to distort the developing cnnsensus on the responsible
use of fiscal policy into something quite different. In this
uncertain world, we simply cannot responsibly schedule fixed tax
reduction for years ahead in blithe ignorance of, or unconcern
for, expenditure needs and the state of the economy. Changes
in our tax system must be recognized for what they are -- strong
~dicine, to be prescribed only after the most painstaking and
careful d iagnos is.
s~cess
A budget deficit acceptable under conditions of excessive
unemployment would be dangerously inflationary when production is
straining at capacity. A willingness to use fiscal stimulus
under one set of conditions must be matched by a willingness to
accept restraint when needed. I need not emphasize to this
audience, which is so well schooled in the principle and practice
of flexible monetary policies, the dangers of a rigid commitment
to particular policies for years ahead, no matter how enticing the
prospec t may appear today.
One factor that must always receive great weight in our
policy decisions is the imperative need to maintain price stability.
With industrial prices today averaging almost precisely the same
as in 1958, we can look back on the longest period of sustained
stability in many decades. Manufacturing labor costs per unit of
output have actually declined during the current expansion -- a
reflection of our rapid gains in productivity and responsible wage
bargaining. In both respects, our performance has been unmatched by
any other major industrialized nation.
There has been no persuasive evidence of a prolonged build-up
of excessive liquidity in our domestic economy. Increases in the
money supply since 1960 have been relatively modest @- at a rate well
below the increase in production. Corporate cash flow has been
expanding rapidly, but we have large investment and working capital
needs. As a result, aggregate corporate balance sheets do not reflect
an accumulation of liquid assets that might fuel an uncontrollable
~rst of spending. And slowly, but noticeably, bank liquidity has
been reduced.
- 7 '-1 ' ) , )
(
:.
..
One important factor in maintaining this balance, and thereby
easing the task of the monetary authorities, has been the steady .
progress in restructuring the national debt. Since early 1961
outstanding marketable Treasury securities maturing in more than
five years have increased by more than $26 billion, an amount
exceeding the entire growth in the public debt. In effect, our
entire cumulative budget deficit has been financed at long-term,
drawing upon the savings generated by a growing economy in ways that
will not contribute to inflationary pressures. This has meant an
increase in the average life of the national debt from four years
and six months in January, 1961, to five years and three months
as of the end of las t mon th. And, ins tead of the creat ion of bank
credit to finance the Government, commercial bank holdings of
Federal debt have declined.
J
Taking a broad look at the past four years, I am persuaded
that monetary policy has made as great a contribution to the solution
of our balance of payments problem as it appropriately could have
done. A severe tightening of credit might, it is true, have
reduced the outflow of short-term funds, and attracted some money from
abroad. That approach would have had merit if our deficit had
resulted from the classic problem of internal inflation with
shortages of labor and industrial capacity. But that was clearly
not the case. The basic solution to our balance of payments
problem lay elsewhere -- in spurring gains in efficiency of
operation and in improving the investment climate so that our
industry could better its position in world markets. In these
circumstances tight money, while perhaps permitting us briefly to
balance our external accounts, would have provided only a fleeting
illusion of progress. By working at cross purposes to our
fundamental needs to stimulate investment and productivity, it
would surely have been self-defeating.
These judgments do not in any way imply that monetary policy
should not be sensitive both to inflationary pressures at home and
to any new difficulties in the balance of payments that may
require a prompt and effective response. To the contrary, the
importance of the tax reduction program lies in part in the fact
that it has placed the monetary authorities in a stronger position
to deal appropriately with such contingencies should they arise.
As our economy moves ahead over the coming weeks and months,
ilie monetary authorities will certainly be watching closely for
evidence, either in financial flows or elsewhere, of forces that
could develop into a threat to either price st~bility or orde~ly
expansion. But we must not assume that the ma1ntenance of pr1ce
stability is the responsibility of the monetary authorities alone.
- 8 F~
the most difficult problem -- and one with which theoonetary
authorities are ill-equipped to deal -- would be spreading wage
and cost pressures that indus try could not absorb from rising
produc tivi ty. Here the heavies t res pons ibi I i ty res ts on both
industry and labor to maintain a relationship between wages,
productivity, and prices that can permit us to prolong our
excellent record of cost and price stability.
For price stability today is imperative, not only to our domestic
economy, but to our balance of payments position.
In the past year,
we have begun to see clear evidence that price stability is
~adually improving our international competitive position.
During
fisca 1 year 1964 our c ommerc ia I expor ts rose by 16 perc en t, far
exceeding the 9 percent rise in imports that has been a natural
coosequence of our rising levels of business activity. As a
result, our commercial trade balance increased by $1.4 billion,
~lping to cut our balance of payments deficit over the same
period more than in half. And during the recent summer months our
exports reached a new peak, despite expected declines in grain
shipments from the exceptionally high levels of last winter.
Important savings have developed in other sectors of our
international accounts.
By mid-year, the annual balance of
paymen ts cos ts of our a id and de fense programs had been trimmed
back by roughly $500 million from their 1962 levels. Further
reductions already scheduled will next year bring those savings
to approximately $1 billion. The dangerous threat to the dollar
arising from last year's accelerating outflow of portfolio capital
~s been successfully braked through the Interest Equalization
Tax. As anticipated, that necessary, but temporary, measure is
providing the breathing time we need until European capital
~rkets are more fully developed and our other measures have had
time to become fully effective.
The favorable influence of these factors on our balance of
payments is frequently obscured by erratic fluctuations from month
to month and quarter to quarter. For example, our payments deficit
dropped abruptly during the firs t quarter of this year in response
to an unusual combination of temporary factors, only to give way
to a considerably larger deficit in the second quarter. The
latest figures for the third quarter ~ while still fragmentary,
indicate that the defici t will fall between those extremes, and
confirm the prospects of substantial improvement for 1964 as a
whole. Looked a t in the longer view we are jus tified in taking rea I
satisfaction from the substantial improvement in our international
payments that has charac terized the pas t 15 months.
- 9 I am not suggesting that our balance of payments problem 1S
over. It clearly is not. In some ways, the hardest part of the
job remains ahead. Moreover, in a world of convertible currencies,
with trade and capital free to flow across national boundaries, it
will never again be possible to take the relaxed attitude toward
oor international payments that characterized much of the period
since World War II.
What I am saying is that I am confident that this challenge
can be met, and that it can be met while reaching new peaks of
prosperity at home. That confidence does not arise out of any
false hope that we can simply ride on the momentum of the past
into a new era of "painless prosperity." Rather, it arises from
the fact that we have learned much in recent years about how to
use and blend our varied tools of Government policy in new ways,
always within a framework of free markets and fiscal responsibility.
It arises because once again our system of free private enterprise
has demonstrated its enormous capacity for growth and innovation
in a climate of price stability and renewed incentives. These are
the solid building blocks out of which we can and will fashion a
better future for all America.
000
TREASURY DEPARTMENT
(
October 22, 1964
FOR IMMEDIATE REIEASE
TREASURY DECISION ON BICYCIES
UNDER TEE ANTIDUMPING ACT
The Treasury Department has determined that bicycles from
Italy, manufactured by Cesare Rizzato & C. s.n.c., Padova, ItalY,
are not being, nor likely to be, sold in the United States at
less than fair value within the meaning of the Antidumping Act.
One of the influencing factors in this determination was the
prompt action of the seller in revising its prices upon learning
that margins existed, and in giving assurances that there will be
no further sales at less than fair value.
The quantity and dollar
value of the importations which appeared to have been made at
prices having dumping margins were mjnjmal.
Notice of the deter-
mination will be published in the Federal Register.
Appraising officers are being instructed to proceed with the
appraisement of this merchandise from Italy without regard to any
question of dumping.
The dollar value of imports of the involved merchandise received during the period from July
was
approximate~
$32,000
1963 through September 1964
TREASURY DEPARTMENT
(
October 22, 1964
TREASURY DECISION ON BICYCIES
UNDER TEE ANTIDUMPING
}c£
The Treasury Department has determined that bicycles fran
Italy, manufactured by Cesare Rizzato & C. s.n.c., Padova, Italy,
are not being, nor likely to be, sold in the United States at
less than fair value within the meaning of the Antidumping Act.
One of the influencing factors in this determination was the
prompt action of the seller in revising its prices upon learning
that margins eXisted, and in giving assurances that there will be
no further sales at less than fair value.
The quantity and dollar
value of the importations which appeared to have been made at
prices having dumping margins were minimal.
Notice of the deter-
mination will be published in the Federal Register.
AppraiSing officers are being instructed to proceed with the
appraisement of this merchandise fram Italy without regard to any
question of dumping.
The dollar value of imports of the involved merchandise received during the period from July 1963 through September 1964
was approximately $32,000
TREASURY DEPARTMENT
(
October 23, 1964
FOR IMMEDIATE RELEASE
DILLON RELEASES REPORT ON
SECRET SERVICE INQUIRY
Secretary of the Treasury Douglas Dillon yesterday
reported to the President on the issuance by the Secret Service
of a White House pass to Walter W. Jenkins in 1961. The
following is a summary of his report:
1. No person in the U. S. Secret Service, except
the then head of its Protective Research Section,
appears to have read and considered the 1961 F.B.I.
fingerprint return which disclosed a 1959 arrest of
Mr. Jenkins by the Washington, D. C., police on a
charge of investigation suspicious person.
2. The head of the PRS, which has the responsibility for the issuance of White House passes, did not
evaluate the return as involving a serious matter. No
action was taken with respect to the return. It was
not brought to the attention of any higher officers of
the Secret Service or of the Treasury Department. Nor
was it brought to the attention of any member of the
White House staff or to the attention of the then Vice
President or his staff.
3. Over the past months the PRS has been
reorganized, and the scope of its responsibilities
clarified. Its staff has been strengthened in quality
and nearly doubled in number. This should eliminate
the possibility of any repetition of this incident.
000
D-1386
-TREASURY
DEPARTMENT
(
October 23, 1964
FOR IMMEDIATE RELEASE
DILLON RELEASES REPORT ON
SECRET SERVICE INQUIRY
Secretary of the Treasury D~ug1as Dillon yesterday
reported to the President on the issuance by the Secret Service
of a White House pass to Walter W. Jenkins in 1961. The
following is a summary of his report:
1. No person in the U. S. Secret Service, except
the then head of its Protective Research Section,
appears to have read and considered the 1961 F.B.I.
fingerprint return which disclosed a 1959 arrest of
Mr. Jenkins by the Washington, D. C., police on a
charge of investigation suspicious person.
2. The head of the PRS, which has the responsibility for the issuance of White House passes, did not
evaluate the return as involving a serious matter. No
action was taken with respect to the return. It was
not brought to the attention of any higher officers of
the Secret Service or of the Treasury Department. Nor
was it brought to the attention of any member of the
White House staff or to the attention of the then Vice
President or his staff.
3. Over the past months the PRS has been
reorganized, and the scope of its responsibilities
clarified. Its staff has been strengthened in quality
and nearly doubled in number. This should eliminate
the possibility of any repetition of this incident.
000
D-1386
demonstrating their capacity to maintain the smooth functioning
of the international monetary system.
# # #
2 11
'"-' v
For Jlp. . . . . .
LIf{ ~
I
October 20, 1904
~-
1.s5(..1~ 0
U.S. Treasury
~he new British government has~ted promp~nd'
........
.,'-
effectively to maintain the strength and stability of the pound
sterling. Its temporary measures strike at the inflated imports
which have been the principal source of immediate pressure on the
p
pound. Its longer run measures affecting
I)
prJ\uct~ity,
incomes, and
prices can provide the improvement that is needed in the competitiv
position'of the United Kingdom in world markets.
6t
is gratifying that the action taken is non-discriminat
in form and avoids any damaging repercussions upon the functioning
the international monetary system. The import charges will, for a t
have a moderately adverse effect upon our trade as well as upon tha
7141=111:
of other countries, but
~
is no painless corrective, either for
the United Kingdom or for the rest of the world. The United States
welcomes the British determination to reduce and remove these impoI
charges at the earliest opportunity.
~xistlng arrangements for
international financial coop-
eration have prov<led their effectiveness in recent years and are a{
TREASURY DEPARTMENT
October 26, 1964
FOR RELEASE AT 9:00 A.M. EST
MONDAY, OCTOBER 26, 1964
The United States Treasury today issued the following
statement:
The new Britisn goverllment has acted promptly and
effectively to maintain the strength and stability of
the pound sterling. Its temporary measures strike at the
inflated imports which have been the principal source
of immediate pressure on the pound. Its longer run
measures affecting productivity, incomes, and prices
can provide the improvement that is needed in the
competitive position of the United Kingdom in world
markets.
It is gratifying that the action taken is
non-discriminatory in form and avoids any damaging
repercussions upon the functioning of the international
monetary system. The import charges will, for a time,
have a moderately adverse effect upon our trade as
well as upon that of other countries, but there is no
painless corrective, either for the United Kingdom
or for the rest of the world. The United States
welcomes the British determination to reduce and remove
these import charges at the earliest opportunity.
Existing arrangements for international financial
cooperation have proved their effectiveness in
recent years and are again demonstrating their capacity
to maintain the smooth functioning of the international
monetary system.
000
- 2 operations research techniques are now being developed for
in analyzing manpower and equipment needs.
use
ITEM: Systematic schedules have been developed for
replacing over-age vessels and aircraft; and new criteria are
being developed for placing search and rescue stations and
craft in the most advantageous positions.
Tete next basic study covered the use being made by the
Internal Revenue Service of its manpower and equipment resources.
Service-wide improvements were recommended.
Numerc~,ls
ITEM: Consolidation of some districts and regions yielded
considerable savings.
ITEM: Duplication of work was eliminated, procedures were
streamlined, low-tax yield activities were curtailed or
abandoned entirely, forms were simplified, and assistance to the
public was improved.
In dollar terms, more than $5,000,000
has been saved so far from improvements growing out of this stud)
More recently a study was made of the related functions of
the Commissioner and the Chief Counsel of the IRS to eliminate
duplication of effort between the two offices. The study,
begun in March, produced recommendations which were fully
implemented by early July. Net annual savings resulting from
this study amount to 86 man-years or approximately $814,000.
In addition, the time required to conduct certain activities
dealing with legislation, regulations, and tax rulings was
substantially reduced.
A comprehensive management survey of the Bureau of Customs
was begun in 1963. Proposals resulting from this study are
still under consideration, but significant economies in operations are expected.
000
TREASURY DEPARTMENT
(
October 26, 1964
FOR IMMEDIATE RELEASE
TREASURY ACHIEVES RECORD SAVINGS
IN MANAGEMENT IMPORVEMENT PROGRAM
Secretary Dillon today announced that a record high in
savings under the Treasury Department's Management Improvement
Program had been achieved in fiscal 1964. Economies realized
during the year resulted in annual, recurring savings of more
than $29.5 million. This record savings figure exceeds by
almost $9 million the former, single-year high set in 1954.
Highlights of the Management actions which produced these
results were published in "Progress in Management Improvement",
the Treasury's annual report on its cost reduction efforts.
Treasury's Management Improvement Program has been in
effect for the past 18 years. During the past four, total
savings have exceeded those of any similar period by almost
40 percent.
Secretary Dillon reported that the Treasury has underway
a comprehensive appraisal of the roles and missions of each of
its component parts. Studies have already been completed of
the three major bureaus, which employ 90 percent of all
Treasury personnel: The United States Coast Guard, Internal
Revenue Service, and the Bureau of Customs.
A group representing the Department of Defense, Bureau of
the Budget, Coast Guard, and Office of the Secretary of the
Treasury, spent nine months examining the Coast Guard. Out of
this examination came some 80 detailed recommendations covering
virtually every phase of Coast Guard operations.
ITEM: A need was found for scientific, long-range planning
if the agency was to get maximum utilization from its relatively
limited supply of ships, planes, and shore stations. Advanced
0-1388
TREASURY DEPARTMENT
'.'.
October 26, 1964
FOR IMMEDIATE RELEASE
TREASURY ACHIEVES RECORD SAVINGS
IN MANAGEMENT IMPORVEMENT PROGRAM
Secretary Dillon today announced that a record high insavings under the Treasury Department's Management Improvement
Program had been achieved in fiscal 1964. Economies realized
during the year resulted in annual, recurring savings of more
than $29.5 million. This record savings figure exceeds by
almost $9 million the former, single-year high set in 1954.
Highlights of the Management actions which produced these
results were published in "Progress in Management Improvement",
the Treasury's annual report on its cost reduction efforts.
Treasury's Management Improvement Program has been in
effect for the past 18 years. During the past four, total
savings have exceeded those of any similar period by almost
40 percent.
Secretary Dillon reported that the Treasury has underway
a comprehensive appraisal of the roles and missions of each of
its component parts. Studies have already been completed of
the three major bureaus, which employ 90 percent of all
Treasury personnel: The United States Coast Guard, Internal
Revenue Service, and the Bureau of Customs.
A group representing the Department of Defense, Bureau of
the Budget, Coast Guard, and Office of the Secretary of the
Treasury, spent nine months examining the Coast Guard. Out of
this examination came some 80 detailed recommendations covering
virtually every phase of Coast Guard operations.
ITEM: A need was found for scientific, long-range planning
if the agency was to get maximum utilization from its relatively
limited supply of ships, planes, and shore stations. Advanced
D-1388
- 2 operations research techniques are now being developed for
in analyzing manpower and equipment needs.
use
ITEM: Systematic schedules have been developed for
replacing over-age vessels and aircraft; and new criteria are
being developed for placing search and rescue stations and
craft in the most advantageous positions.
The next basic study covered the use being made by the
Internal Reve~ue S~rvice of its manpower and equipment resources.
Numerous Serv~ce-w~de improvements were recommended.
ITEM: Consolidation of some districts and regions yielded
considerable savings.
ITEM: Duplication of work was eliminated, procedures were
streamlined, low-tax yield activities were curtailed or
abandoned entirely, forms were simplified, and assistance to the
public was improved.
In dollar terms, more than $5,000,000
has been saved so far from improvements growing out of this study.
More recently a study was made of the related functions of
the Commissioner and the Chief Counsel of the IRS to eliminate
duplication of effort between the two offices. The study,
begun in March, produced recommendations which were fully
implemented by early July. Net annual savings resulting from
this study amount to 86 man-years or approximately $814,000.
In addition, the time required to conduct certain activities
dealing with legislation, regulations, and tax rulings was
substantially reduced.
A comprehensive management survey of the Bureau of Customs
was begun in 1963. Proposals resulting from this study are
still under consideration, but significant economies in operations are expected.
000
l. ,~. W:;,'Ai'V:crS,
rta.!d!l, !JOWber 27. 1264.
.-r;R
~:'IJo:ASIt
R!;S.'L'fS
l'
'J"P.!ASI;ay'S w&~KL'"
The 'f1'eU817 :-.partatnt _a..., •• 1u\ .....'1.; t at. t¥le terul4tJ'8 ror tvo MrS. •
Tft&6U1'1 bi U., QQ8 . .ri.. toO . . _ add1Uoul '-11$ ,~. ilft bUla-iatAd J~ JO, 1M
... ti. o"".r aerlea t.o .. d'~tetI '1o\ober 19, 1f6Il. \IO~ i el' .. ereJ!"tered. ;)o)c\ober D,
w,.. 0jleIWd al. tt. !edeI'al F. . . ., . . . . . _ ~r 2~~. i..nCen
innWcl t .
Sl,200,OOJ,OOO, or there&btNte, of 9l-da¥ biU• •1: r..r ~l,(n.J,) ;'.1, COO, fir \b.......
wet,..
of 181-daJ hallt.
Ybe deMUa of the . . eeriN are
&~ t.;>l)Ol4$I
£'tA!iOE 0'1 \CC F'f"D
nU-5.
~p''T'!rlVE
Ia) peneat, of ;..ile ~ of 91 __ lIill. au tot" tit. t..le low :'rlce wu . . ...,...
86 pe...... ot the DcJWl\ of 18,..,. bUla ~ [,)1' at ~j,. low ,srice was aooepW
Ol.t.r.n
IOiiOft
IIIrw '(Ol"k
PbUadelphia
Cl....land
Jt1oh1aoftd
AU.,...
Chicago
st. toute
~1a;,.&p<Jli.
Iane. . ~ity
~~
For
'f~&'l.OOO
l,S97,2lla,OOO
29,<;06,000
?2,1al8,OOO
14,>89,'JOO
24,59),000
2l2,~1,'»)()
)4,S6S,OOO
A!!.!f'"
•
t.pliGd
!'-or
I S ' 34,188,000
e18,116,0)..)
1,400,616,000
14.)os,Ou
8,181 .. 000
11,197,OJ'';
6l,2~;OOO
1,m.o:,u
l',D8,0 ; J
6,640,~
.lccepW
•
l,iJ,t
I"."
112,,.,.
16 .,,-
l&!lI1tC
87,,,,,
1,."
18,Sll,l);
18,626,000
lI;nr"
l)6.05h,O'j;
26,615,0};
219,1SS,{X)()
1),)21,()(X)
1 , 920, (X)()
u,614,OOO
10,185,000
a.~
2),:lB9,!JOO
14,94',0 i'J
.l),88S,();)Q
,,)1I,e
S,."
Dallas
5ennno1aeo
ill, 7:)'),000
62,~8JOOO
)0,586,0 '-';
52,6)5,0)'
)6~oo,O')
_102,4)l.,0J9
L'JW
'tJtAI.$
:S:2,2<1a,1»,000
:U,IOO,IU,oo')!I
$1,frJ2,0t')9,OOO
$1,ooo,7GLtt
~
:MludN $23),656,000 nlDOcapeUUft '-den aece. t.~d at V.e avera·;e pr10e of ".1
jW,udea $71,297,000 ~t..t.... tendera Mee,i'i;$>l; ""t \.:_. avera:;e .~r1041 of
.... oapoD 1,. . of the __ l.eacttb ... tor t.r~ ...~ am3-nt. inve.ted, t.be n __
t.bMe bU18 wJ.d .~ yielU at )Me, tor 'V.e l-c.a,r b,lla, m4
18~ bUla. lat.v.... I'ftH an tim..... Q\lOVO-4 j..n tf!ll'"9"..a of bank diRoud ......
u ....,,~ related \0 t.h. race ~\ of U. \-;),1:18 ,~able at Nlt.t;ri1;J' n\bII'tIIt
the -.oat. t-,...toM aDd t.he1r l-cU11..n &:\u.l 11 ~t~r )f da.rs relat..d .... ~
til o_wa tt, y1e1- - o.n1t1oaw., :,:,IJ<!ta, «nd. bJnda &.l"e ooaput.e4 ia . .
ot 1nt.eNa\ an tbI aa:NIlt, t~, aM Nla\e 1;,,,0 \1 ....... ~r .:>f (la.yS r.alr,1nc la •
i"teren ~" period \0 t.he .'wMl I!NIbar )f I'ja; 8 1, 1;.:;. p,'r104, v~ t.A ......
~na·r 1M,.. 'ban c-. _wpon perlod 1, ir!v.Jlv a.
,..11
l.es:', t."
1'1"'.
TREASURY DEPARTMENT
RELEASE A. M. NEWSPAPERS,
~sdayJ October 27, 1964.
POR
RESl~TS
October 26, 1964
OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
reasury bills, one series to be an additional. issue of the bills dated July 30, 1964,
ldtbe other series to be dated October 29,1964, which were offered on October 21,
~re opened at the Federal Reserve Banks on October 26. Tenders were invited for
L, 200, 000,000, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
r 182-day bills. The details of the two series are as follows:
lliGE OF ACCEPTED
)MPETITIVE BIDS:
High
Low
Average
91-day Treasury bills
maturing January 28, 1965
Approx. Equi v.
Price
Annual Rate
99.101
3.556%
99.097
3.572%
99.098
3.567%
182-day Treasury bills
maturing April 29 , 1965
Approx. Equiv •
Price
Annual Rate
98.121
3.717%
98.116
3.727%
98.117
3.724% Y
Y
43 percent of the amount of 91-day bills bid for at the low price was accepted
86 percent of the amount of 182-day bills bid for at the low price was accepted
ITAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
)allas
lan Francisco
A,e,elied For
$ 35,491,000
1,597,234,000
29,506,000
22,418,000
14,089,000
24,593,000
212,601,000
34,565,000
23,089,000
30,885,000
6?,518,000
117,750,000
Acce;eted
$ 17,321,000
BIt" 745,000
14,305,000
21,797,000
12,218,000
18,523,000
136,054,000
26,615,000
14,949,000
-30,586,000
52,635,000
36,400,000
TOTALS
$2,204,739,000
$1,200,148,000
District
Boston
New York
Philadelphia
Cleveland
Richmond
manta
Chicago
St. Louis
ltinneapolis
{ansas City
!I
A;eElied For
$ 34,188,000
1,400,676,000
8,181,000
61,204,000
6,840,000
18,628,000
219,755,000
13,327,000
7,920,000
ll, 674, 000
10,185,000
109 z431.!000
$1,902,009,000
AcceEted
2,049,000
$
822,926,000
2,935,000
16,395,000
4,181,000
12,975,000
87,854,000
7,857,000
4,420,000
9,378,000
5,055,000
24 2676 2.000
$1,000,701,000
EI
InclUdes $233,656,000 noncompetitive tenders accepted at the average price of 99.098
InclUdes $71,297,000 noncompetitive tenders accepted at the average price of 98.117
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.65%, for the 91-d~ bills, md 3.85%, for the
182-day bUls. Interest rat!s 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
yea:. In contrast, yields on certificates, notes, and bonds are comp~ted in terms
of lIlterest on the amount invested, and relate the number of days remuning in an
interest P83'Ment period to the actual number of days in the period, with sem1-armual
compounding if more than one coupon period is involved.
D-1389
P')R &!".l2.A':f. A. M. ~lt'5PW:}{5J
W!dM!c!ay. r}e\ober 28.
196it.
l'he tnUUl"1 Depart.Mnlo artl'lO\IIlMd. laat even1ag \bat \be t.ellOel·. for $l,OOO.OOG,l
t.henabo\lto, of ~ ~ bill. to bet date400t.eller )1, 1~"'1,' and t;o - .
Oot.ober )1, 19f,5.c~wh1otl went orrered Oft Oetober 21, wn opIIDI8d at the Fed.tral ~
Barur. or. Oot.obttr 21.
OJ'
the detaile of \his i..,. are u
Total applied tor rotal aooeptod
-
tollowal
ft,JL9,19},000""'-
J'-
m.9"50,{~1nolud8. *,S,259,000 entered 00
~ a rtORO :w.pet1 U.. baai. and aeoep~fl in
tull. at the Aftr_ pr'h.t! lIbOlm t.low)
3.780% flf:r
J.1y);t"
J.7Y\},o"
rate of diHQlmt 8.!lPrQx.
tI
"M
..
M
1""
II
anm..
II
"
l ::>t.&].
/ic~,e~d
GEoa
l'
Ne\. fork
Philadelphia
Cleveland
Richaond
1,·;';t1, K)O
j,J19,OOO
'll, ~'7fj, !)OO
4, IJ, 7, ()JO
AUant.a
L:h1c&f!O
St. Louie
:,. inneapcal.1a
l.atldU C1 t)"
), 7),,~,'JJO
·')7 j. i)OC)
t,7 S,OOO
:; J
~all. .
san P'raneieoo
T;~ '.00,
~
1/
1,782,(»)
786" lUI, OC)Q
1,112,000
1 7 ,.36,:)()Q
8_
.}' j,)
.>m,9~o,<m
~
a ~}- issue of tM . . . lon~:t.h and for the
aacNDt 1nY"'8~d, tne ,.""
the•• bUl. would provide a yield of ).96;. Jnter·'.t rate. on tilll. (1J'f) Q t l " 1
tenu of bank dieoount nth \be re\urn ~Jlat.'·cd to t.be face tmm,nt of tohe bUb pi
at. maturity rather V,an t.be .aunt inT4!8t.ed and tbetr lenctdl in a.ct,-\l&l JU!ber tl
relat~d too a )b()..da;y year.
In cont.rut, ;;r1elde on cen.1f'teat.es. Hote., aDd ....
~ut.e4 in tertte ~f ; nt.erest on t.he _CNnt, iflV':;sted, ancS nldt.e t.he flllJllber tl ..
lWI'&inin;~ in an int..erut. P8J'Mn t period. t.o \be actual. m.a.ber ':11 ~la;.ya in the ,.,u
wit.h ~1.nnual capouncU.n~ if more than ODe COupon periOfi i . involvecl.
(.in
TREASURY DEPARTMENT
!'OR RELEASE A. M• NEWSPAPERS,
iednesdaya October 28, 1964.
-
October 27, 1964
RESULTS OF REFUNDING OF $1 BILLION OF ONE-YEAR BILLS
The Treasury Department announced last evening that the tenders for $1,000,000,000,
thereabouts, of 365-day Treasury bills to be dated October 31, 1964, and to mature
~etober )1, 1965, which were offered on October 21, were opened at the Federal Reserve
lanks on October 27.
If
The details of this issue are as follows:
Total applied for Total accepted
~ge
$2,349,793,000
999,950,000(includes $45,259,000 entered on
a noncompetitive basis and accepted in
full at the average price shown below)
of accepted competitive bids:
High
Low
Average
- 96.168 Equivalent rate of discount approx. 3.780% per annum
- 96.154"
"""
"
3.793%"
"
- 96.158"
"""
"
3.790-%"
"Y
(100% of the amount bid for at the low price was accepted)
'ederal Reserve
~Itrict
!Oston
ell' York
biladelphia
leveland
ichmond
tlanta
hie ago
t. Louis
inneapolis
ansas City
laUas
~
Francisco
. TOTAL
Total
Applied for
$ 15,882,000
1,807,769,000
11,172,000
33,136,000
1,458,000
8,019,000
271,921,000
10,147,000
10,845,000
5,579,000
33,165,000
140,100,000
$2,349, 793,,000
Total.
Accepted
$ 1,182,000
788,769,000
1,172,000
17,636,000
1,458,000
3,019,000
91,278,000
4,647,000
3,745,000
5,079,000
1,765,000
79,600,000
$999,950,000
~a coupon issue of the same length and for the same amount invested, the return on
these bUls would provide a yield of 3.96%. Interest rates on bills are quoted in
tams of b&nk discount with the return related to the face amount of the bills payable
tt maturity rather than the amount invested and their length in actual number of days
related to a 360-tUi,y year. In contrast, yields on certificates, notes, and bonds are
cCllputed in terms of interest on the amount invested, and relate the number of days
l'IlIIaining in an interest p83Jllent period to the actual number of days in the period,
with Semiannual clAlIpounding if more than one coupon period is involved.
0.1390
- :3 -
and exchange tenders vill receive equal treatment.
Cash adjustments will be IIIBde
for differences between the par va.lue of maturing bills accepted in exchange and
the issue price of the new bills.
ibe income derived from Treasury bills, whether interest or gain fl'Oll the sale
or other disposition ot the bills, does not have any exemption, as such, and losl
from
the sale or other disposition of Treasury bills does not have any special
treatment, as such, under the Internal Revenue Code ot 1954.
The bills are subject
to estate, inheritance, gift or other excise taxes, whether ]l'ederal. or state, but
are exempt from all taxation now or hereafter imposed on the principal or interest
thereot by any state, or any ot 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 ot 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 ot, 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 pa.:1d tor such
bills,· ¥bether on original issue or on subsequent purchase, and the amount actuall
received either upon sale or redemption at maturity during the taxable year tor
which the return is made,
&8
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 BraDch.
- 2 -
dec1ma.l.s, e. g., 99.925.
Fra.ct1.ons may not be used.
It is urged that tenders
be made on the printed forms and forwarded in the special envelopes which rill
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
ba.nking 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 Trea.sury bills applied for, unless the tenders are a.ccompaniee
by an express guara.nty of payment by an incorporated bank" or trust company.
Dmnediate1y a.f'ter the closing hour, tenders will be opened at the Federal
Reserve Ea.nks 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'.
Secretary of the Trea.sury expressly reserves the right to accept or reject
The
azrs
or a.ll tenders, in whole or in part, and his action in any such respect shall be
fina.l.
Subject to these reservations, noncompetitive tenders for $ fttf?0 or
less for the additional. bills dated
August 6
1964
(I7)
1ng until maturity date on
$loo,09(L or less for the
(29~
Feb~
1965
,(
91
days rema.1n
(18)
) and noncompetitive tenders for
182 -cia.y bills without stated price from any one
. (21)
bidder will be accepted in f'u1.1 at the average price (in three dec1mals) of' accepted competitive bids f'or the respective issues.
Settlement for accepted ten-
ders in accordance with the bids must be made or completed at the Federal Resen
Banks on
November 5, 1964
.taa"}
, in cash or other immediately ava.1lab1e :f\mds or
in a like i"a.ce amount of Trea.sury bills maturing ___No
___
v~em;;;ib;;.;e_:OO~5~.;;1_96_4____ • Casb
')4?
L
L
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
October 28, 1
~"eeo~
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two aerj
of Treasury bills to the aggregate amount of $ 2, 200=W ,000 , or thereabouts, tc
November 5, 1964 , in the amen
cash and in exchange for Treasury bills mat\].ring
w::
of $ 2 • 200::!fA?' 000 , as folloW's:
Novembe~
91 -day bills ( to maturity date) to be issued
W-
,
1964
in the amount of $ 1,2OWFO'000, or thereabouts, representing an additional amount of bills dated
and to mature
Febru~
amount of $ 900.616.000
1965
~st~1964
, originally issued in the
, the additions.! and original billa
(10)
to be freely interchangeable.
182 -day bills, for $l,OOO'ffifOOO , or thereabouts, to be dated
{14
Novembe~ 1964
,and to mature
May 6, 1965
•
""flA+
The bills of both series will be issued on a discount basis under competiti'
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount will be payable without interest.
They will be issued in bearer form on!
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
!enders will be received at Federal Reserve Banks and Branches up to the
clOSing hour, on,,-thirty p.m., Eastern Standard time,
Monday, November 2,
19~
tBf
Tenders will not be received at the Treasury Department, Washington.
Each tende
must be for an even multiple of $1,000, and in the case of competitive tenders t
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
October 28, 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,OOO,OOO,or thereabouts, for cash and in exchange for
Treasury bills maturing November 5 1964 in the amount of
$2,200,920,000, as follows:
'
,
91-day bills (to maturity date) to be issued
in the amount of $1,200,000,000, or thereabouts,
additional amount of bills datedAugust 6 1964
mature February 4, 1965, originally issued in the
$900,616,000,
the additional and original bills
interchangeable.
November 5
1964
representi~g an '
and to
amount of
to be freely
182-day bills, for $1,000,000,000, or thereabouts, to be dated
November 5, 1964, and to mature May 6, 1965.
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
Eastern Standard
time, Monday November 2, 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.
up to the closing hour, one-thirty p.m.,
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.
)-1391
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ which public
announcement will be made by the Treasury Departinen 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
August 6, 1964,
(91 days remaining until maturit¥ date on
February 4, 1965) 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 must9b~
made or completed at the Federal Reserve Banks on November~, 1 64,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing November 5, 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
TREASURY DEPARTMENT
FOR IMMEDIATE RELEASE
October 28, 1964
TREASURY ANNOUNCES NOVEMBER REFUNDING TERMS
The Treasury will borrow $9-1/4 billion, or thereabouts, through the issuance of
l8-month 4% Treasury notes, at par, dated November 15, 1964, for the purpose of borro'Wi~ ne'W cash and of paying off in cash $8.7 billion of the follo'Wing Treasury securities maturing November 15, 1964:
$3,267 million of 4-7/8% notes of Series C-1964, dated February 15, 1960; and
$5,441 million of 3-3/4% notes of Series F-1964, dated August 15, 1963.
The ne'W notes 'Will be dated November 15, 1964, and 'Will mature May 15, 1966.
Interest 'Will be payable semiannually on May 15 and November 15, 1965, and on May 15,
1966.
The notes 'Will be made available in registered as well as bearer form. All subscribers requesting registered notes will be required to furnish appropriate identifyi~ numbers as required on tax returns and other documents submitted to the Internal
Revenue Service.
Payment and delivery date for the notes Will be November 16. Payment may be made
in cash, or in 4-7/8% notes of Series C-~964 or 3-3/4% notes of S~ries F-1964, which
will be accepted at par, in payment or exchange, in whole or in part, for the notes
subscribed for, to the extent such subscriptions are allotted by the Treasury. The
new issue may ~ be paid for by credit in Treasury Tax and Loan Accounts.
The subscription books will be open ~ ~ Monday, November~. Any subscriptions
nth the required deposits addressed to a Federal Reserve Bank or Branch, or to the
T~asurer of the united States, and placed in the mail before midnight, November 2,
1964, 'Will be considered timely.
Subscriptions from commercial banks, for their own account, 'Will be restricted
in each case to an amount not exceeding 50 percent of the combined capital (not includ~ capital notes or debentures), surplus and undivided profits of the subscribing bank.
Subscriptions from commercial and other banks for their own account, Federallyinsured saVings and loan associations, States, political subdivisions or instrumentalities thereof, public penSion and retirement and other public funds, international
organizations in 'Which the United States holds membership, foreign central banks and
foreign States, dealers who make primary markets in Government securities and report
d~ly to the Federal Reserve Bank of New York their positions 'With respect to Govern~nt securities and borrO'Wings thereon, Government Investment Accounts, and the Federal Reserve Banks wi 11 be received 'Without deposit.
D-1392
-2Subscriptions from all others must be accompanied by payment of 2'f, (in cash, or
Treasury Notes of Series C-1964 or Series F-1964, maturing November 15, 1964, at par)
of the amount of notes applied for not subject to withdrawal until after a11otment.
The Secretary of the Treasury reserves the right to reject or reduce any subscr1
tion, to allot less than the amount of notes applied for, and to make different perce
age allotments to various classes of subscribers; and any action he may take in these
respects shall be final. The basis of the allotment will be publicly announced, and
allotment notices will be sent out promptly upon allotment.
Subject to the reservations in the preceding paragraph, all subscriptions from
States, political subdivisions or instrumentalities thereof, public penSion and ret11
ment and other public funds, international organizations in which the United States
holds membership, foreign central banks and foreign States, Government Investment
Accounts, and the Federal Reserve Banks, will be allotted in full upon the submissior
of a written certification by the subscriber that the amount of the subscription doe!
not exceed the amount of the two maturing securities owned or contracted for purchasE
for value, at 4 p.m., Eastern Standard time, October 28, 1964. Should any such subscriber enter any subscription which does not carry the certification as to ownerlh~
of the eligible securities, any and all subscriptions received from such subscriber
will be allotted on the basis of the allotment to be publicly announced for other
classes of subscribers.
All subscribers are required to agree not to purchase or to sell, or to make BIll
agreements with respect to the purchase or sale or other disposition of any of the
new 4'f, notes at a specific rate or price until after midnight November 2, 1964.
Commercial banks in submitting subscriptiOns will be required to certify that t}
have no benefiCial interest in any of the subscriptions they enter for the account oj
their customers, and that their customers have no beneficial interest in the banks'
subscriptions for their own account.
000
efTA-nON
V.ut.l.nguUhe.d Se..tvlu hlJi1./Ul
ftohtAt G. ROU6f.
Tlte. TlttcUWUl VepMtlne.nt uet.ntl.c/ tI.t«bt..l6he.d
cr. Duthtgu..l4htd SMviee. ~tJ.1UI. to
hOJtDJr. thO.U. outA.Ldt. the. TJtU.6u.\y who have. .unde./teA wuuU4Uf! auataltd.blg 1U4,utcutU
:to the. Vt.PQ)l.()ne.nt. Tt 1.6 l,LUl.rtg thtt.t the. ~wt 4u.c.1t ~ "houl.d be. e.oft~~d upon
Robut: G. ROUAe. 601(. Iu. d.lj,f.htgul.l.ltt..d 4fAvlu
Fe.dVlat dt.b.t ovM
« 4 y)tUl
0~
twuttq- ~.l"f.
46 CUI
ndv.ue.1t
Oft
the.
mtDtdgemut
06 the.
~e.aM.
W46 4prJOi.ntt.d VJ.u Pltt-A,£dtJt;t o~ the. Ftdvr.4t. ~"eltVf. Bot
ttftd UtOtagtll 0 ~ tltt Sq.6tf1n OpCJl M«I«k e.t A~ura.t, tuld mou ue.trLtl..t.( i.A I&J.A
c.«pa.eibr 46 Via 1'ItuJ.de.nt t%Ild SfAlo.\ Ad"J.I,f)t o~ tile. Ft.cWt«t Ru"vf. 84Iltt 06 Mew You,
Mit. R~t. htU be.tn. one. o~ the. pltbtelpal ctdvLu.JU to tltt TJt&46u,ttl Oft tht. 6o~ft
ad txu,u.tum 0 ~ de.bt man«gemen.t poUeL{. H.u 4 e.M oKed JCAdgme.r&t, .£n.tc.gJtUq ad
~uhen.6.i"t knowledgt o~ rMlLkeh f'l'ftLdt IWn an btva1.at«blf. e.<JWUelOJL to me. ttIItl to
my pJttde.U4.601l4 a6 Sf.(!'\e.iM!f
tile. T~UJlrf.
Slnce. '939, wlttlt Ite.
o6 Htw 'lad
06
ThItouglt .tIte. Cjt.aJt6
df.vf.l~ ,,~
40Wld
It.lJ, 1tt4tWr.f. Judgmttnt h&
tltt
We. UJLU .aoJLdJ, mU'& tlte. bu".u
Mlr.. ROU4" fL«6 rn4dt .uUU"tliVI4bl& c,oKVt.lbut.l.ou .ttM4Jul
debt 1tI4It4g0JffJlt pcUflu.
6utu.u. debt
0'
mtUlagemvtt cU.elAU.u.
VOCtgw
o..c.tt....
,)
.r::..
(n
246'
Robert G. lbuse Given First Treasury
Dist1Jl&u1shed service Award
Treasury Secrete.ry Dillon presented the first 1'reasury
Distinguished Service Award to Robert G. Rouse last niiht. 'lhe
avard took place at a testimonial d1rmer given in JIIr. Rouse's
hoDOr b;y friends and associates 111 Govermaent and ba.nki ng. 'lhe
new Dist1Dgu1shed Service Award was established by Secretary
Dillon last year as the Treasury's h1ihest recop1Uon which
my be conferred on an iDd1v1dual citizen woo is DOt sa employee
of the Department.
Mr. Rouse retired on October 1, 1964 frail his posiUOIl as
Vice President of the Federal. Resene BEmk of New York. He baA
been 'tor JII&Dy years the )SDa.ger of the System Open Market Account
&Dd more recently served as 8eD1or A4v1ser of the Federal. Reserve
Bank of New York.
A copy of the c1 taUon is attached.
"I
ItDlMrt o. ..,. . Qiftll ftnt
'ftq
Dl.t1Iap1.... a.nioe . . . .
'fI'anr,y SeoNtaq DlllQU preaaata4 tM tint TlN&nI7
Dlat1Dp1 __ 8erY1oe Awz'cl 1;0 IDMrt G. BouH lut Jd.IIrt-
..
a, ... -n:u!i--ptea at a tee'tl'lOld&1 41 . . . . " . - Sa a.. ~
b£Ir»r b7 tr1ta4a u4 uaoc1Qa 111 OIW.lIIIIIIlt l1li4 bNtk' ••r~
Dew ns.atiDCtAisbed SerY1ce Awzod. . . .nab]! pbed _
8iIc:I'etu7
D1llon lut year . . the ~. a Matw-t re«W'iUOa, wldcrh
..,. be eoa.terred em aD 1D41Yi",.' _citi. . vbo, 1. IIDt _ ~
of tbe ~t. 7 / ~- -; . '"",, r f -~ r:::.,' '-~. ~1 "--.'~_4-//
/_ .-:.- ~/. ,""".
. ..,.- • . ~. ".,~.#-~,.f' ",-- ····v /~., oe-)'- It:
Mr. lbuae J1It1:red OIl ~ 1, 1964
hi. JOdt.S..a..
..
V1ce ~1deDt \Of the :re4eral . . . . ,.. amk fd ..., York. lilt ...
lMteD tor -..y ~ the ,....,. of t.be s;yatel 0..- MIoI'Dt Acooat .....
UIIl .... reCMUl.¥ ...NI . . 8 l o r Mv1 ... of..tM'"
. . . . . . •• ')
~--8I .....-Yerk.
:'
rn.
J
pA"
,I
I
TREASURY DEPARTMENT
z
FOR IMMEDIATE RELEASE
ROBERT G. ROUSE GIVEN FIRST T~=ASURY
DISTINGUISHED SERVI CE Av,TARD
Treasury Secretary Dillon presented the first Treasury
Distinguished Service Award to Robert G. Rouse last night at a
testimonial dinner given in Mr. Rouse 1s honor by friends and
associates in Government and banking.
The new Distinguished Service Award was established by
Secretary Dillon last year as the Treasury1s highest recognition
which may be conferred on an individual citizen who is not an
employee of the Department. The award is given for "unusuallv
outstanding assistance to the Department."
Mr. Rouse retired on October 1, 1964 from his position as
Vice President and Senior Adviser of the Federal Reserve Bank of
New York. He had been for many years the Manager of the System
Open Market Account conducting market operations both for the
Federal Reserve and Treasury.
Following is the text of SecretarY Dillon's citation of
Mr. Rouse:
The Treasury Department recently established a
Distinguished Service Award to honor those outside the
Treasury who have rendered unusually outstanding
assistance to the Department. It is fitting that the
first such award should be conferred upon Robert G. Rouse
for his distinguished service as an adviser on the
management of the Federal debt over a span of
twenty-five years.
Since 1939, when he was appointed Vice President
of the Federal Reserve Bank of New York and Manager of
t~e System Open Market Account, and more recently in
his capacity as Vice President and Senior Adviser of the
Federal Rpserve Bank of New York, Mr. Rouse has been one
D-1393
- 2 of the principal advisers to the Treasury on the formulation and execution of debt management policy. His
seasoned judgment, integrity and comprehensive knowledge
of markets made him an invaluable counselor to me and to
my predecessors as Secretary of the Treasury.
Through the years, Mr. Rouse has made innumerable
contributions toward the development of sound debt
management policies. We will sorely miss the benefit of
his mature judgment in future debt management decisions.
000
- 3'l'be aitatioDB are in the form
ot a ceftifteaw vt40b
aam...
tM . . .
Secretary ot the 'l'reaaury and RW, !tIn ...c1a1lM.ut1OD of lID cnaUt;e"'".
contribution to greater eCOD01QY and 1mpro._' 1A
duriDg the tenth amrl.veraary year
~ ~
ot the JPedera1 1aeeDtif t ....-«a JI'DII'M••
- a-
Mr. Clarence B. Ri., Supan1aor.y M8riM " , ' 1 ' . 18 . .
,'.1:d;h aa.n
Guard District at leY OrleaDa, LoW..1aaa, 1Ibo 00DC01* ... 148&
1z1.Dg two tweDty year..old connruot.lon 'MD4er. aD4
a ccmat.ru.ctloJl ca.pab1l1ty coa&pU'&bl.e to
~l1minary
~
'-11' 'bu'IJea
at .....
W JIIfftSAe
w8Mle . . . PI"QU't4 . .
dJ!sign, draw:l.ngs, and apeeificat10na which WIre INlImt1le4
and approved by the Commandant in late aummer 1963.
COC 8JfAD1UII ...
completed in January, 1964, and QIC CLEMA'fIS was completed 1a Mq,
The cost of modification
'WaS
to
appro:x1ately ~,OOO per eb1p.
1964.
J'or 111118
price, the Coast Guard acquired tvo IJh1pa whoaIe cape.b111tie. approuh that
of a construction tender built today .. and vhoae rema1D1ag useful lite 18
estimated at ten years.
The estimated ooat of a . " conatruat1oa teDdar
and barge with a 25-year life would be ~, 000.
"'-
The Resources utilization Committee CIt "the InterDal. 1teve... Sen1~)
was c1ted for analyzing Service operati0D8 and atrue'tllre aDd JSk1111
ftCQa-
mendat10ns tor improvement and ecODOmies lead1Dg to eubata.at.1al ftCNI71III
annual savings.
The report prepared by the Coumittee 1Dcl.wJe4 12 J'eoaa-
lII8ndat1onSj &1OOD6 the most 1mport.aat of vb1.ch vas a plaA
of regiOns and districts.
to NC1uce the . . .
When ful.ly implemented. this reIl.1grJI8Dt of
offices -- which in no way reduces
~r
aerv1ce Dar entOl'ce.nt
ettee-
tiveness -- 1s expected to yield recurring anDual _v1Dga of .3.8 ra1U1CJ1l.
An Internal Revenue Service Cooa:1ttee vas g1ven a citation
major improvements in the conduct of informal
Hew oonfe1'eDCe procedures will :result in
aD
COD1'8!'eDOeS
with
tor 4n8lAlpiJII
~.
.atiMted aaY1ltp of ~,..".
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-'D'-
~ IMMEDIATE DLBASI:
,:
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~
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• ce.., 8ecl'etar.Y DoualaC1tat1:ns
to~a4s Of,~WI
I
Au;,4.~~"'-'t,+~ 'c>i~(I,-~ /0
LL()V\)vY1'1.
1ll..>...J~
,
ot the TNa8U:ry
'fha"
\
the last fiscal year.
of o-..r
,
Jt'I.-.
30 Pn.SMaU.a1 ,
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.
....&u.4 ~ ,4...
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acbieve18ltSof individuals &D4 UDita(iitb1a their orpnt"'t~q"3
liaJraUtlliMq . _, Ie' •• costa
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citat10ne ret1ect a total aniate4 ....up
ut DI1ll1on cIo~l ~~
..... _
..;.~...
puot <Jt -
Govemment-w1de program to ark the tcth year of the I'e4eral . .1. . . . .
Incent1ve Awards system..
'.l'weaty-aeven urdts from the Internal BeveD\18 Service, the JQreau of
Engraving aDd P.nDt1Dg, Bureau of Cuatome, Bureau ot the Public Debt, ...
the
Bureau of Accounts wre hoDored.
In ad41tlO1l, two UDlt. aD1
0.-
otYlllaa
employee ot 1be U. S. Coast Ouan\ ftce1va4~]recop1~1oa.
,.~.:
.I.
D1vision ot Diabunement of the a.treau of Accourrts elch ~ th&.~
ita award.
th&ii,
the Oowmment
c
~rov1dK ~ 411",,"-iDI ..~ thI'ouah --PI~
~ ~
.
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I
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88.laJ7
and 1s8U&DCe of cheakala@fU. S. SaT1Dp Ecm4a .._
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cbacka ~ Go •• L
ct,
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....1' gttlne,·""·oln r I,E.I: Me la' . . recip1nU or
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Security beDef'1tl, vete:rau' be_tit., and C1rtl. 8en1.ce ua4
..
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Re1i11"eDllnt bnettta.
Some 20 m:Ul101l peftOu are cSepea&t1lt upoa
receipt at the. checks. '!be D1v1aion reported
~/
41i'1~1
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$6651118'~~iD8 nscal Y~~&D4 101.3 man.:yqn/ .....~
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"to
TREASURY DEPARTMENT
October 29, 1964
FOR IMMED IA TE RELEASE
SECRETARY DILLON PRESENTS PRESIDENTIAL CITATIONS
FOR ECONOMY ACHIEVEMENTS TOTALLING $10-1/4 MILLION
Secretary of the Treasury Douglas Dillon today presented
30 Presidential Citations to heads of bureaus of the Treasury
Department recognizing achievements of individuals and units which
reduced costs and increased efficiency in operations during the last
fiscal year. The c i ta t ions re flee t a total es tima ted savings of
over 10-1/4 million dollars.
The awards are part of the current Government-wide program
to mark the. tenth year of the Federal Employees Incentive Awards
system.
Twenty-seven units from the Internal Revenue Service, the
Bureau of Engraving and Prin ting, Bureau of Cus toms, Bureau of the
Public Debt, and the Bureau of Accounts were honored.
In addi tion,
~o units and one civilian employee of the U. S. Coast Guard
received recognition.
Secretary Dillon emphasized particularly the accomplishment of
the Division of Disbursement of the Bureau of Accounts which earned
that unit its award. The Division provides disbursing services for
more than 1,600 civilian agencies of the Executive Branch of the
Government through the preparation and issuance of checks and
U, S. Savings Bonds.
These include salary checks to Government
e~loyees, recipients of Social Security benefits, veterans' benefits,
and Civil Service and Railroad Retirement benefits. Some 20 million
~rsons are dependent upon the regular receipt of these checks.
The Division reported savings due to increased productivity amounting
to $665,118 and 101.3 man-years of time during Fiscal Year 1964.
Other outstanding contributions which were recognized
included:
Mr. Clarence H. Rice, Supervisory Marine Engineer in the Eighth
Coast Guard District at New Orleans, Louisiana, who conceived the
idea of modernizing two twenty year-old construction tenders and
their barges to provide a cons truction capability comparable to
modern ves se ls . He prepared the pre 1 iminary des ign, drawings, and
D..1394
- 2 -
specifications which were submitted to and approved by the
Commandant in late summer 1963. CGC SHADBUSH was completed in
January, 1964, and CGC CLEMATIS was completed in May, 1964. The
cost of modification was approximately $60,000 per ship. For this
price, the Coast Guard acquired two ships whose capabilities
approach that of a construction tender built today, and whose
remaining useful life is estimated at ten years. The estimated
cost of a new construction tender and barge with a 25-year life
would be $500,000.
The Internal Revenue Service Resources Utilization Committee
was cited for analyzing Service operations and structure and
making recommendations for improvement and economies leading
to substantial recurring annual savings. The report prepared by
the Committee included 72 recommendations; among the most
important of which was a plan to reduce the number of regions
and districts. When fully implemented, this realignment of
offices -- which in no way reduces taxpayer service nor enforcement
effectiveness -- is expected to yield recurring annual savings
of $3 . 8 mill i on .
An Internal Revenue Service Committee was given a citation
for developing major improvements in the conduct of informal
conferences with taxpayers. New conference procedures will result
in an estimated savings of $924,450.
The citations are in the form of a certificate which carries
the Great Seal in gold imprint and the signature of President
Johnson and the Secretary of the Treasury and reads, "In special
recognition of an outstanding contribution to greater economy and
improvement in Government operations during the tenth anniversary
year of the Federa 1 incen ti ve awards program. "
000
25~
TREASURY DEPARTMENT
Q
FOR IMMEDIATE REIEASE
TREASURY DECISION ON LITHARGE
UNDER THE ANTIDUMPmG ACT
The Treasury Department has determined that Ii tbarge
from Mexico is not being, nor likely to be, sold in the
United States at less than fair value within the meaning
of the Antidumping Act.
Litharge is a lead product used
in the production of storage batteries.
Notice of the
determination Will be published in the Federal Register.
The dollar value of imports of the involved mer chandise received during 1963 was approximately $500,000.
TREASURY DEPARTMENT
FOR IMMEDIATE REIEASE
TREASURY DECISION ON LITHARGE
UNDER THE ANTIDUMPnlG ACT
The Treasury Department has determined that litharge
from Mexico is not being, nor likely to be, sold in the
United States at less than fair value within the meaning
of the AntidumpiDg Act •
Litharge is a lead product used
in the production of storage batteries.
Notice of the
determination will be published in the Federal Register.
The dollar value of imports of the involved merchandise received during 1963 was approximately $500,000.
FOR imLEASE A. M. tIEWS~1",88,
TU!!d!l, Nonaber " 1964.
•• oveaber 2, 196h
The '!'NUV, Depariaeat aru»uDCed lan @yenin.~ that. ttl. tenders tor two ..m.
Trea8Ul7 bU18, OM . .ri.. t.o be an addit.ional i.Stl1le or the bUl. dated iuguat 6, U
and the other . .nee to be dated Nov"'" $, 1964, lI'hich lie".. oftered on Jctober 28,
were opened at the P'ederal .1.eaene Ba. . on ~~ovemt>er 2. Tender, were inv1. ted tor
.1,200,000,000, or thereabout8, of 9l-da7 bills and for ~l,OOO,{)(.(),O()·), or tner.bo1
ot 182-da1' bills. The details or the t.wel aeries are . . follows:
182-dal 'I'reasury 'billa
iWil!l: Of< AC""SFIr~D
matur1X!i ~al
COMPETITIVE Blah
Price
18.124
:18.116
98.120
aJ lxoept.1Dc ODe teader of 12)6,000
fas or tile . .unto of 91-day btUe bid
2" ot
to_
tOTtL 'tUlJlaS
Apel.1ecl ,~.!•
37,0;7,000
. . York
1,515,65,,000
28,5)2,000
24.190,000
Cl.....:l.aDd
R10ta0Dd
Atlaa\a
SaD FNDciJIeo
A!!!Pted
•
20,)57,000
78b,)}1,()X):
13,532,000:
2L,190,OJI.l
'Y.
Y
i\P01ied For
.B
12,037,000
1,265,170,000
lO,on .000
Act;9W
'11,931
736,2SS
5,09'1
48,36'
12.1)46,000:
5,187,000
12,207 ,OCX)
10,491
1)O,247,One
)9,726,000)) ,662 ,O'JJ:
2S,hl),OOO
2O,h53,O'...I(J:
)4,924,000
14,J24,ooo s
28,5S9,OOO
20,239,;:,)00:
Ul,m.OOO
ze,iJS,OOO:
170,5l1,lXii)
10,985
12,422,000
9,922
),22;
9,16C
12 ,~,ooo
26,489,(}-~j
2U,927,OOO
EI
7,223,000
9,760,000
J ,4S4,OOO
67, JIB,OOJ
S,181
9,kSl
,5,1&71
$2,106,2tl9,uOO
~1,200,565,O()O
fl,6so,380,,')I){j n,ooo,l6!
includes '.245,304,000 uoncontpetitive tenders accep~d at the .vera~e price of ,
Includes ~11, 7i!O,OO{) noneol'!!'P6 t ltive tende~13 a~ptcd at tn., avera~~e price of •
On a coupon istrue of t~lf' Sal38 l.~-t.a snd {or tflt! $B.me a.'!iO"dnt invested, the reM
tnese oill. would r.rovide yield, of 3.6!d, for tHe 'n-da/ lJil16, and 3.84:1, tor
182-dai oills. I;:t4rcst rates on bills an quoted in ier-:ns of bank diacolid wi:
Nt.urn rela:t.ed to the face amount of thE bills :''l4,!ar,le at 1l'laturl t; rather tblll
a;r.ouct inveated and their length in actual numoor 01· day. related to & J6O-cII1
In contrast, sielct. on certificates, note., and bonde are COJIputed in t.ers. of
tereat on too amount inYeated, and relat. th. nwaber of da,ya rema1.rling in u 11
f,'.a.r...-eat period to the act~al number of days in the period, With 8er.tiannual . . .
Tot.a.l:s
i/
oil t
4S,J66,ooo
)O,l&2~,OOO
Chi.oqo
8t.. LnU
HlDllMpOl.18
18. . . C1~7
Dall..
.
Faa ,itO .lCClmD 8f P:llElAL iiE3/{V C :nS'[IUafS:
Dlat.r1Gt.
Boe\oll
PbUadtipbla
).727%
3.718% ;
the low price wae accepted
aaouat. of 182-da7 billa .... tar at the low price wa. accepted
lPFLI~D
for
6, 1962
Appru. r.q~
Anuaal Ra\i
).711S
if more
t.laO
one coupon period
i8
involYE:d.
TREASURY DEPARTMENT
-a
~SLMSE A. H. NEWSPAPERS,
~Y I November 3, 1964.
November 2, 1964
ftESur:rS 0;:;' TftF..ASURY'S WEEKLY BILL OFFERING
The Treasury Department annO'JIlcen last evening that the tenders for two series of
asur! bills, one series to be an additional issue of the bills dated August 6, 1964,
the ot.her series to be dated November 5, 1964, which were offered on October 28,
e Clpened at the Federal lteserve Banks on l~ovember 2. Tenders were invited for'
2\)~),UOO,OOO, or thereabouts, of 91-day bills and for $1,000,000,000, or thereabouts,
IH2-day bills. The details of the two series are as follows:
AC8SPT:~D
}E OF
PlITITTVE BIDS:
li32-day Treasur~r bills
maturing ;'.ay 6, 1965
Aprrox. Eqd. v.
Annual Rate
98.J.?4
3.711i
98.116
3.72710
98.120
3.718;{. 1/
91-day 'I'r::::asury bills
maturil!§ February 4, 1965
Approx. Equiv.
Price
Annuali.ate
99.105 a/
3.541;t;
99.098 3.568i
99.100
3.562%
11
a/ Excepting
one tender of $236,000
b8:; of the amount of 91-day bills bid for at the low price was accepted
29,0 of the amount of 182-day bills bid for at the low prlee was accepted
AL
'.;"~DEr\.:3
.,\PFLI:':D FOB. AND ACCEPi'i"D By,'t;UErW, rl.ESEltVE DISTLlT'::l'.3:
istrict
oston
e~' Y::>rk
hiladelphia
leveland
ic:rrflond
~lanta
ilica'!o
...,
~. Louis
lnneapolis
Insas City
111:35
1:1 "ral1cisco
Applied For
37,057,000
~
1,515,659,000
28,532,000
24,190,000
12,546,000
30,429,000
211,927,000
39,726,000
25,413,000
34,924,000
28,559,000
117~327~000
i\.ccepted
$ 20,357,000
784,991,000
13,532,000
24,190,000
12,546,000
26,489,000
130,247,000
33,662,000
20,453,000
34,924,000
20,239,000
78 z935 2OOO
A))I)lied?or
+ '
$ 12,037,000
1,28),170,000
:
10,097,000
48,366,000
5,107,000
12,207,000
170,539,000
12,u.22,000
:
.
£I
7,223,000
9,76 0,000
9,454,000
67 ,91e ,000
Accepted
:$
11,937,000
73(),255,000
5,097,OUO
48,366,000
5,187,000
10,497,000
90,989,000
9,922,000
5,223,000
9,760,000
9,454,000
55,478,0(l0
$1,200,565,000
$2,106,289,000
$1,650,3 80,000
$1,000,165,000 ~/
:ncludes ;~24.J,::'04,oco noncompetitive tenders accepted at the averase price of 99.100
ncludes $71, 7Llo ,000 noncompetitive tenders accepted at the averase price of 98.120
in a coupon iSSlte of the same lenvth and for the same anlonnt i nv~~sted, the return on
,he~e bills would provide yields ~f 3.64{, for the 9l-day billE, and 3.8)..\.;~, for the
e2-dct~' bills. Interest rat'i:!s or.! bills are quoted in terrlS of bank discotmt wit" the
et1lrn l'el&ted to the face arrount, of tLe tills payable at wat.urii.y rather than t}Je
I1ClJIl[. j nvested and their length in actual number of days re la t.ed to a 360-day year.
n contrClpt, yields or. certificates, notes, and bonds are computed in terrns of inerest on t.he amount invested, a.nd relate the number of days remaini.ne; in an interest
1t'IP ot period to the actual number of days in the period, wit\! eemiannual compoundin:::;
f more than one coupon period is tnvolv8d.
Totals
1395
- 3 -
and exchange tenders vill 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 frorJ the sal
or other disposition ot the bills, does not have any exemption, as such, and
1088
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 subJec
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 interes1
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 ot 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 ot, 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 sue
bills,' whether on original issue or on subsequent purchase, and the amount actuaJ
received either upon sale or redemption at maturity during the taxable year tor
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, pI'l
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.
259
- 2 -
decimals, e. g., 99.925.
Jl'ractj.ons 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 a.ccount of customers
provided the names ot the customers a.re set forth in such tenders.
others than
banking institutions will not be pennitted to submit tenders except for their
own a.ccount.
Tenders will be received without deposit from incorporated banks
and trust companies and from responsible and recognized dea.lers in investment
securities.
Tenders from others must be accompanied by payment of 2 percent ot
the face amount of Treasury bills applied for, unless the tenders a.re accompanie
by an express gua.ra.nty of payment by an incorporated bank" or trust company.
Dmnediately a.fter 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 ot the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereot.
The
secretary of the Treasury expressly reserves the right to accept or reject any
or a.ll tenders, in whole or in part, and his a.ction in any such respect shall be
fin.a.l.
Subject to these reservations, noncompetitive tenders for $ 200,000 or
less for the additional bills dated
August A1964
inS until maturity date on February 11, 1965
$ 100,000 or less for the
{Mf
, (
91
(10)
"fi&f
days rema.1r
) and noncompetit1ve tenders
to]
ti9f
182 -da\Y bills without stated price from anyone
=tm=
bidder will be accepted in tull a.t the a.vera.ge price (in three dec1ma.ls) ot accepted competit1ve bids tor the respective issues.
Settlement for accepted ten·
ders in accordance with the bids must be made or completed a.t the Federal Reser
Banks on
November 12, 1964
f2if
, in cash or other immediately ava.1lable funds
in a. like face amount of Treasury bills maturing
November 12, 1964
----ri"25f~~;;..;....-
•
0
cash
260
~
Bfhn~
TREASURY DEPARTMENT
Washington
FOR 1)ft1EDJATE RELEASE,
November 4, 1964
TREASURY I S WEEKLY BILL OFFERING
The Treasury Department, by this public notice, invites tenders for two seri
of Treasury bills to the aggregate amount of $
cash and in exchange for Treasury bills
2,200~0,OOO
mat~ring
November 12, 1964 , in the amou
W
of $ 2,196,331,000 , as follows:
fit
91 -day bills (to maturity date) to be issued
t5f
in the amount of $
1,200~,OOO
November 12, 1964
amount of $
February II, 1965
#f
90l~OOO
W
,
, or thereabouts, represent-
ing an additional amount of bills dated
and to mature
, or thereabouts, fo
A~t 1~1964
,
, originally issued in the
,the additional and original bills
to be freely interchangeable.
182 -day bills, for $ l,OO~,OOO , or thereabouts, to be dated
(11)
November 12, 1964, and to mature _--=M=a:;;.r;Y--:;l;&.;;r.3~1;;.;;9...;;65~_ _
ti5f
T-H7
The bills of both series will be issued on a discount basis under competiti
and noncompetitive bidding as hereinafter provided, and at maturity their face
amount will be payable without interest.
They will be issued in bearer form 001
and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and
$1,000,000 (maturity value).
!'enders will be received at Federal Reserve Banks and Branches up to the
clOSing hour,
on~-thirty
p.m., Eastern Standard time,
Monday, November 9, 196j
l4&tEach tende
!'enders will not be received at the Treasury Department, Washington.
must be for an even multiple of $1,000, and in the case of competitive tenders t
price offered must be expressed on the basis of 100, with not more thaD three
TREASURY DEPARTMENT
November 4, 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
p,200 ,000 ,000, or thereabouts, for cash and in exchange for
Treasury bills maturing November 12 1964 in the amount of
~2,196,331,000, as follows:
'
,
91-day bills (to maturity date) to be issued November 12 1964,
in the amount of $1,200,000,000, or thereabouts, representing an
additional amount of bills dated Augus t 13, 1964, and to
mature February 11, 1965qriginally issued in the amount of
~901,846 ,000,
the additional and original bills to be freely
interchangeable.
182 -day bills, for $1,000,000,000,
or thereabouts, to be dated
November 12, 1964, and to matureMay 13, 1965.
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, November 9, 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,
Hith 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 spec ial envelopes whic h 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
lubmit tenders except for their own account. Tenders will be received
lithout deposit from incorporated banks and trust companies and from
rsponSible" and recognized dealers in investment securities. Tenders
rom others must be accompanied by payment of 2 percent of the face
lIItount of Treasury bills applied for, unless the tenders are
tccornpanied by an express guaranty of payment by an incorporated bank
Dr trust company.
D-1396
- 2 -
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ 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,OOOor less for the additional bills dated
August 13 1964
(91days remaining until maturit¥ date on
February 11, 1965) 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 th~ee
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 November 12, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing November 12, 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 fron
any Federal Reserve Bank or Branch.
000
TREASURY DEPARTMENT
November 4, 1964
FOR IMMEDIATE REIEASE
WITHHOLDING OF APPRAISEMENT ON
BREAD IN IDAVES
The Treasury Department is instructing customs field officers
to withhold appraisement of bread in loaves from British Columbia,
Canada,pending a determination as to whether this merchandise is
being sold in the United States at less than fair value.
Notice
to this effect is being published in the Federal Register.
Under the Antidumping Act, determination of sales in the United
States at less than fair value would require reference of the case
to the Tariff Commission, which would consider whether American industry was being injured.
shown to
justi~
Both dumping price and injury must be
a finding of dumping under the law.
The allegation in this case was received on July 6, 1964, and
was made by Congressman Bill Stinson.
The dollar value of imports
received during the period July 1964 through September 1964 was
approximately $60,000.
TREASURY DEPARTMENT
Novemher ll, 1964
FOR IMMEDIATE RElEASE
WITllliOIDING OF APPRAISEMENT ON
BREAD IN WAVES
The Treasury Department is instructing customs field officers
to withhold appraisement of bread in loaves from British Columbia,
Canada,pending a determination as to whether this merchandise is
being sold in the United states at less than fair value.
Notice
to this effect is being published in the Federal Register.
Under the Antidumping Act, determillatjon of sales in the United
states at less than fair value would require reference of the case
to the Tariff Commission, which would consider whether American industry was being injured.
Both dumping price and injury must be
Shown to justify a finding of dumping under the law.
The allegation in this case was received on July 6, 1964, and
was made by Congressman Bill Stinson.
The dollar value of imports
received during the period July 1964 through September 1964 was
approximately $60,000.
TREASURY DEPARTMENT
FOR IMMEDIATE lThLEASE
RE~-;UL'l'S
November 5, 19G4
O}' TREASURY'S CASH OFFERING OF 4% NOTES
Reports received from the Federal Reserve Banks show that subscriptions
total about ~2l,820 million for the offering of $9-1/4 billion, or thereabouts,
of 4 percent Treasury Notes of Series D-1966, due May 15, 1966.
The total
amount of subscriptions accepted is about $9,494 million.
The Treasury will allot in full, as provided in the offerinc circular,
:~G ,595
about
million of subscriptions from States, political subdivisions or
instrumentalities thereof, public pension and retirement and other public
funds, international organizations in which the United States holds membership,
foreign central banks and foreign States, Government Investment Accounts, and
the Federal Reserve Banks, where the subscriber made the required certification
of ownership of securities maturing on November 15, 1964.
On subscriptions received subject to allotment, the Treasury will allot
in full subscriptions up to $100,000 and other subscriptions will be subject
to a 16.5 percent allotment with a minimum allotment of $100,000 per subscription.
Reports received thus far from the Federal Reserve Banks show that
subscriptions subject to allotment total about $8,752 million from cOnllnercial
banks for their own account and $6,473 million from all others.
Details by Federal Reserve Districts as to subscriptions and allotments
will be announced when final reports are received from the Federal Reserve
Banks.
D-1397
000
- 2 Henry Holtzclaw, Director of the Bureau of Engraving and Printing,
characterized as representing one of the highest skills in the
graphic arts.
The portraits are then produced by the highly specia
ized process of intaglio printing.
Mr. Holtzclaw said that many
months of painstaking effort are required to achieve the high
standard of quality expected in this series.
As in the case of
previ.ous presidents, the new portrait of President Johnson received
his personal approval before it was reproduced.
A purchase order form describing the various prints sold
by the Bureau, including the engraved portraits of all the
Presidents, may be obtained from the Bureau of Engraving and
Printing, Office Services Branch, Fourteenth and C Streets, S.w.,
washington, D. C., 20226.
000
The U. S. Treasury Department's Bureau of Engraving and
Printing announced today the addition of the portrait of
President Lyndon B. Johnson to the series of engravings of
American Presidents which are regularly on sale to the public.
<::
The addition of President Johnson's portrait brings the
series of thirty-six engravings up-to-date.
They may be pur-
chased individually, or as a complete set.
The Presidential engravings are among the most popular of
the numerous prints of historic and documentary nature available
from the Bureau.
They are in two sizes suitable for framing:
9 by 12 inches, which sell for 55 cents each, and 6 by 8 inches,
at 35 cents each.
The portraits are made by a time-honored hand process by
expert craftsmen.
Two engravers use a unique hand process which
TREASURY DEPARTMENT
November 5, 1964
FOR RELEASE SUNDAY NEWSPAPERS
NOVEMBER 8, 1964
PRESIDENT JOHNSON'S PORTRAIT ADDED TO
SERIES OF PRESIDENTIAL ENGRAVINGS
The U.S. Treasury Department's Bureau of Engraving and
Printing announced today the addition of the portrait of
President Lyndon B. Johnson to the series of engravings of
American Presidents which are regularly on sale to the public.
Work on the portrait, which involves complicated skills,
was begun last February 5, 1964.
The addition of President Johnson's portrait brings the
series of thirty-five engravings up-to-date. They may be
purchased individually, or as a complete set.
The Presidential engravings are among the most popular of
the numerous prints of historic and documentary nature available
from the Bureau. They are in two sizes suitable for framing:
9 by 12 inches, which sell for 55 cents each, and 6 by 8 inches,
at 35 cents each.
The portraits are made by a time-honored hand process by
expert craftsmen. Two engravers use a unique hand process which
Henry Holtzclaw, Director of the Bureau of Engraving and Printing,
characterized as representing one of the highest skills in the
graphic arts. The portraits are then produced by the highly
specialized process of intaglio printing. Mr. Holtzclaw said
that many months of painstaking effort are required to achieve
the high standard of quality expected in this series. As in
the case of previous presidents, the new portrait of President
Johnson received his personal approval before it was reproduced.
A purchase order form describing the various prints sold
by the Bureau, including the engraved portraits of all the
PreSidents, may be obtained from the Bureau of Engraving and
Printing, Office Services Branch, Fourteenth and C Streets, S.W.,
Washington, D.C., 20226.
000
D-1398
P")F r;ELE.13f.· A..';.~. Nr.;W.~ /A.r2:RS t
~1" lO.. U6lt.
he.."
;'"i::SlL1'~:~}r Tk~':AJUay·s ~;.~ll.l, L,
the l'nU1U";Y
r,epare..m. atmOUnoed la8t
. ' : : : ':';
eveadf\~;:.;,at ~".
tenden {or tovo -J1.u c
Mr1.eG to tAt an add1t.1ona1 i.H.h.i,i,I :If t.ba b:,lla d&t. ..,d A~ 13, lJ
and the gt.her . . riM too be ~ ~09"'" 12, 1964, wU.oh W'''- N '~) ft.r.d on "'0' ... "I
. . . . ~d at. t.tMJ ~""_rel,
rre Banka . . . . . . .,b,~r 1- ,ende.ra 'Wan i.nvi \(tel t .
!.il,2'JO,0CJ0,.;)"JO, err ..nereUouu, 01 9l-d.tf' bS.ll. lind for ,~l,()(~.), })J,.fJO, 01' ~
of 182-day blUe. '~he .talla of tJ1~t \wo . .r1M 6.!'\l atJ r'lllowa.
.~ b~ll8. QftII
JF"
ttl"!~lg
C:Ol'(d,""fl
J...:~'rei'Tf
rr~
n
'PITre.
......
9l-da7 1'rttUV.Y b111s
uturj5 'c!:trpr.r U,.~
~ y.
Api'-.
Price
99.,.00 iT
Higia
99.Q9S
99.091
Low
1."1"84"
162-day ;'n&R17 bill.
I!4't\l.ri.ntJ La: ~ lP§
pros.
MIUal ita.
?ric"
).S~
9f.l06
1.S6Oi
l.S.~
96.11S
II
il
A.Dr.lt&&l
).7IH
J.~.
).74U li
96.108
'!/
" ~Una
r48l
nat.
tMo \.aden ....11111 ''160,000,
xcepUq WO t.enc1eN toW i •• ~
Q ~
t.be DOtD'&t. of 91__ 01.l1a b1d f:Jr lit 1. the low price ........,...
, ......, o£ \he ~n\ of 18. . . . 'bUla W for at t.he 1_
wu
TOTAL ff.NOf-'ftS A.~'i1.1~1) FOa AJt.D A.CCi?1'RD BY ~1lL :\', " i ' :,,':;.·!:'('~51
or
~~For
.;>
~11O,dOO
1.1&69,",3,000
l"'R;f$l,IJO')
:\1.~
1),466,000
ll,!.66,J(j\)
At.lAntQ
.)6,709,000
)O,618,'):)'J
018\1>10\
float"ln
-., lork
?hiladel.phia
Cle. .1and
Ch.1eqo
~~t.. lAu1.
~l.
It. . . . t1,¥
r~l
..
San ;'FaROtHO
1'Jur.s
t
MOe'"
i'''''*
28,8S),OOO
JO, Slll, 000
~,u),ooo
lS,lSO,O"JO
25,5S8,000
29,294, (YJO
18, f)"l, 000
9$,590,000
$2,029,)01,000
"'l~,\t)O
U,es),!)!)!.,)
JO. S]t&, ,y)fj
146,US,)OO
17 ,331, ;(}:)
2O,)78,'Y)')
21, 29h, ):).)
20,)61, :),'j
S4, )1.0, ;:0]
,
,
f:.11i>d
..., ')l"
1
17,7)6,000
1,)22,152,000
7,1)8,000
:
(;';),72),000
f
1.4,0)4,000
.•
I
:
$-l,toO,an, j)Q !I
u.:a... $2SS,288,oao aonea.pn1U... '-den
•
Ii. ; :
$-
22,~6,OOO
l42,259,000
15,32$,000
6,509,000
20,401.000
11,49l,OOO
10),006,000
$1, Tt.u,422,00l
AOc.e,.;
~;&;,
$
161'1:
1,1 '
lS,lT"
6,Qa6,
14,arr,
'I2,S.,
U,8bOI
6ft
1,sa,
1$
•
k26
$1,000,)11.
aeoep"e4 at t,i-. aft~ rdGe eI 9f.
eece:pt.ad. at t..he .Yera~ pno. of 9IJ
.wi tor t,he . . . . lROUn\ 1,~.eeW4. tJIe
,.~, lor t.he ;i1-day bUu, and l.81$, t.
IMl..... 561,6O!i,000 .oao~U.... , .......
N'"
OIl • .-poD 1dM of U. . . . l4IIII'b
. .-. bill. ¥CNU prwWe )'iel- of
1l'2-dq ~~11.. T~", ratee Oft ldU• •,.. q\lOt,I)d in tAltnu of Hnk cU . . . . . .u
the TI!!t;,4rn l"elat.e't t" tX,ot\I f&ee ~;.)i.int Of t.he bill. payable at .';.\U"1t.r ratb8r U
u.e ~...nt in..,ostf:d and t-t:eiJ" len;rt.f\ in I.·:tual n~ber ~ day. ,..1ata4 W • ~
lear. ' n eont.~t., yield, on 04lrt.1fio.t.ea, notea, and hond.e an o.-p.,t,ed sa .Gt ini.ttNIIt. ~ ";.;. .vr~'nt l.nv<C'!sted, aM Mlat.e 'tria n~t-... r ot day • ....s.DiIII 1a.
int.e"st. ;}a,,. I':t ,<!IT; ad tv ':.ht ar.:t.w nUiaber of day. in the perio", n\b • ." ....
c~~':JUnd1ng it more than one coupon "~1od 1. inY'Jlftd.
TREASURY DEPARTMENT
!DR RELEASE A.M. NEWSPAPERS,
-
j'uesday,
November 10, 1964.
NOY_ber 9, 1964
RESULTS OF TREASURY I S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series of
iJ'easury bills, one series to be an additional. issue of the bills dated August 13, 1964,
and the other series to be dated November 12, 1964, which were offered on November 4,
vere opened at the Federal ReserYe Banks on November 9. Tenders were invited for
~1,200,OOOJOOO, or thereabouts, of 91-dq bUls and for $1,000,000,000, or thereabouts,
of lB2-day bills. The details of the two seriel are as follows.
91-da:y Treaaury bills
:
l82-c:lay Treasury bills
maturing February il, 1965:
maturing Mar 13, 1965
Approx. Equiv. :
Approx. Equiv.
Price
Annual Rate
:
Price
Annual Rate
High
99.100
3.560%
:
98.115
3.729%
Low
99.095
3.580%
:
98.106
3.746%
Average
99.097
3.574%
98.108
3.742% 1/
a/ F.xcepting two tenders totaling $760,000; ~ Excepting two tenders totaling $400,000
IiJ. percent of the amount ot 9l-c:lay bills bid for a t the low price was accepted
3 percent of the amount ot 182-day bills bid for at the low price was accepted
1J.ilGE OF ACCEPTED
~Q};?ETITlVE BIDS:
'Y
!I
Y
:
IOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
PhUad~lphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Includes
Applied For
$ 30,170,000
1,469,913,000
28,853,000
30,534,000
13,466,000
36,709,000
205,113,000
35,150,000
25,558,000
29,294,000
28,951,000
95,590,000
$2,029,301,000
Acce~ed
Applied For
$ 24,152,000 : $ 17,736,000
791,448,000 : 1,322,152,000
13,853,000:
7,738,000
30,534,000:
60,723,000
13,466,000:
14,0)4,000
30,818,000
22,Oh6,OOO
146,115,000
142,259,000
27,332,000:
15,325,000
20,378,000
8,509,000
27,294,000:
20,40),000
20,361,000:
11,491,000
54,340,000:
100,006,000
$1,200,091,000 sI $1,742,422,000
Accepted
$
7,736,000
768,967,000
2,738,000
35,873,000
6,646,000
14,027,000
72,574,000
12,840,000
6,509,000
15,405,000
7,521,000
49,481,000
$1,000,317,000
sI
$255,288,000 nonccapet1t1v. tenders accepted at the average price of 99.097
Includes $87,605,000 noncompetitive tenders accepted at the average price of 98.108
a coupon issue of the same length and for the same amount invested, the return on
bills would provide yields of 3.66%, tor the 91-day bUls, and 3.87%, far the
182-day bills. Interest rates on bills are quoted in terms of bank discount with
the return rela:ted to the tace amount of the bills payable at maturity rather than
the amount invested aDd their length 'in actual number ot clay. related to a 36D-day
year. In contrast, Jields on certificates, note,s, and bonds are cClllputed in terms
of interest on the amount invested, and relate the number of d.ays remaining in an
interest payment period to t.be actual nUilber of d~. in the period, with semi-annual
cOlI!pounding if more than one coupon period is involved.
On
these
:;19
TREASURY DEPARTMENT
November 10, 1964
FOR IMMEDIATE RELEASE
TREASURY MARKET TRANSACTIONS IN OCTOBER
During October 1961, market transactions in
direct and guaranteed securities of the government for Treasury investment and other accounts
resulted in net purchases by the Treasury Department of
~126,157,OOO.OO.
000
D-1400
TREASURY DEPARTMENT
•-
November 10, 1964
FOR IMMEDIATE REWSE
TREASURY MARKET TRANSACTIONS IN OCTOBER
During October 1961, market transactions in
direct and guaranteed securities of the government for Treasury investment and other accounts
resulted in net purchases by the Treasury Depertment of
~126,157,OOO.OO.
000
D-1400
- 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 sal
or other disposition of the bills, does not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills does not have
treatment, as such, under the Internal Revenue code of 1954.
any
special
The bills are subjec
to estate, inheritance, gift or other excise taxes, whether Federal or state, but
are exempt from all taxation now or hereafter imposed on the principal or 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 sue
bills,' whether on original issue or on subsequent purchase, and the amount actual
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, PrE
scribe the
te~s
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.
273
- 2 -
decimals, e. g., 99.925.
Fractj.ons 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
n8m~s
of the customers are set forth in such tenders.
Others than
banking institutions will not be pennitted to submit tenders except for their
own account.
Tenders will be received without deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by payment of 2 percent of
the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express gua.ra.nty of payment by an incorporated bank" or trust 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 $ 2fMOO or
less for the additional bills dated
August #?Q1964
,(
91
days remain·
ttJij
ing until maturity date on
$
fUiiOO or less for the
Februifftlf' 1965
182
fW
) and noncompetitive tenders for
-day bills without stated price from anyone
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 Reserv'
Banks on November . 1 9 6 4
, in cash or other immediately available funds or
in a like :Lace amount of Treasury bills maturing
NOVembeX:tiiJ 1964
•
Cash
274
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
November 10, 1964
TREASURY'S WEEKLY BILL OFFERING
The Treasury Department, by thi s public not ice , invites tenders for two Beri,
of Treasury bills to the aggregate amount of $ 2,200S'OOO , or therea.bouts, fo
cash and in exchange for Treasury bills
of $
2'200~3JOOO
mat~ring
November 19, 1964 , in the smou
XWX
, as follows:
91 -day bills (to ma.turity date) to be issued
XC&t
in the amount of $
1,20~,000
amount of $
Febru~8,
90l,~000
1965
xtt«J
, or thereabouts, represent-
ing an additional amount of bills dated
and to mature
November 19, 1964
AUgus~
1964
,
, originally issued in the
the additional and original bills
to be freely interchangeable.
182 -day bills, for $
600ik
1JOOO~000
November 19, 1964
i&\M{
, or thereabouts, to be dated
, and to mature May 20. 1965
J.OCii){
The bills of both series will be issued on a discount basis under competitiv
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,
on~-thirty
p.m., Eastern Standard time,
Monday. November 16. 1964
~
Tenders will not be received at the Treasury Department, Washington.
Each tendeI
must be for an even multiple of $1,000, and in the case of competitive tenders tt
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
November 10, 1 Yh4
FOR IMMED IA TE RELEASE
TREASURY'S WEEKLY BILL
OFFERINC
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
~,200,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing November 19,1964, in the amount of
$2,200 ,753,000, as follows:
9~day bills
(to maturity date) to be issued
in the amount of $1,200,000,000, or thereabouts,
additional amount of bills dated Augus t 20,1 Y64 ,
matu::'e February 18,1965 ,originally issued in the
$901 ,346,000, the additional and original bills
interchangeable.
NuvI'lllbC'r 19, 1964,
representing an
and to
amount of
to be freely
182-day bills, for $1,000,000,000, or thereabouts, to be dated
Novcrnher 19,1964, and to mature
May 20,1 Q {),).
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
one-thirty p. m. , P.as te rn S L! Illla n!
time, Monday, November 16, 1 Y64.
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,
rtth 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
~~rve Banks or Branches on application therefor.
up to the c losing hour,
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
rrom 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 1 ncorporated bank
or trust company.
D-1401
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ which public
announcement will be made by the Treasury Depar~ent 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
August 20, 1964, (91-days remaining until maturit¥ date on
Febru3ry 18,196~) 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 ir. accordance with the bids must be
made or completed at the Federal Reserve Banks on Novemher 19, 1964
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing Novcm/;er 1", 1qh'+. 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 pri~e of the new bills.
The income der1 ".Ted from Treasury bills. wilether interest or
gain from the sale or other disposition of tne 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 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 ':.11e difference between
the price paid for such bills, whether on G~~ginal 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 D~partment 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
- 3 -
the sale or other disponition of Treasury bills does not have any special treatment,
r;u.ch,
\ln~lel'
the Internal Revenue Code of 1954.
The bills are subject to estate, inhe
ltance, gift or other excise taxes, whether Federal or State, but are exempt from all
tn."Co.t!on no"., or hereafter imposed on the principal or interest thereof by any State,
any of the possessions of the United States, or by any local taxing authority.
For
purpoGCS of taxation the amount of d:i.scount at which Treasury bills are originally so
by
the United States is considered to be interest.
Under Sections 454 (b) and 1221 (:
of the Internal Revenue Code of 1954 the amount of discount at which bills issued her
under are sold is not considered to
aCCl~e
until such bills are sold, redeemed or oth
vise dispooed of, and such bills are excluded from consideration as capital assets.
Accordingly, the Olmer 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, wether on original issue or on subsequent pruchase, and the arno
actually
l~ceived
either upon sale or redemption at maturity during the taxable year
for which the return is nmde, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision) and this notice, preGcri
the terms of the Treasury bills and govern the conditions of their issue.
the circular may be obtained from any Federal Reserve Bank or Branch.
Copies of
- 2 -
-
\1P!IA - TAX
]3anldne institutions generally ma.y submit tenders for account of customers
ided the names of the customers arc set forth in such tenders.
1'1'0-
Others than banking
nstitutions will not be pennitted to submit tenders except for their own e.ccount.
endcrs will be :received l-rithout dcpoaH from incorporated banks and trust companies
nd from responsible and recognized dealers in investment securities.
Tenders from
thers must be accompan:lcd by payment of 2 percent of the face amount of Treasury bills
pplied for, unless the tenders are accompanied by an express guaranty of payment by an
ncorpol'ated bank or trust company.
ill bidders are required to agree not to purchase or to sell, or to make any
gl'eements with respect to the purchase or sale or other disposition of any bills of
at a specific rate or price
Dis issue/, until after one-thirty p.m., Eastern Standard.time, Tuesday, November 17, 1964.
.
M
InDilediately after the closing hour, tenders will be opened at the Federal Reserve
~ks
and Branches, following which public announcement will be made by the Treasury
epartment of the amount and price range of accepted bids.
\ll be advised of the acceptance qr rejection thereof.
Those submitting tenders
The Secretary of the Treasury
JPress4r reserves the right to accept or reject any or all tenders, in whole or in part,
ll. his action in any such respect shall be final.
mpetitive tenders for $ 200,000
Subject to these reservations, non-
or less without stated price from anyone
fifH
ader lrill be accepted in full at the average price (in three decimals) of accepted
I!petitive bids.
Payment of accepted tenders at the prj.ces offered must be made or
Ilpleted at the Federal Reserve Bank in cash or other inunediately available funds on
~ar
W
64
, prOVided, hm-lever, any qualified depositary will be permitted
.
not more than 50 ~ercent of the ,amount of
make paytnent by credit in its Trerwury tax and loan account forlTreasury b1.lls allotted
it for itself and its customers up to e:ny a.mount for lmich it shall be qualified in
~ess of eXisting deposits wen so notified by the Federal Reserve Ban1~ of its District.
~e income derived from Treasury bills, vmether interest or gain from the sale
other disposition of the bills, does not have aIrY exemption, as such, and loss from
Exhibit I-B
ALPHA - '!'AX
TREASURY DEPAm'I,fi!:NT
'''a.shincton
November 10, 1964
FOR IIlrIEDIATE RELEASE,
.5 BILLION IN JUNE TAX BILLS
The Treasury Department, by this public notice, invites tenders for
or thereD.bouts, of
210
~
'Till be designated Ta.."{ Anticj.pation Series, they 1dll be da.ted
payment of income
1!5~000!1
-d8¥ Treasury bills, to be issued on a discount basis under
competitive and noncompetitive biddinc as hereinafter provided.
and they 1dll r.m.ture
:Ii
June 22, 1965
=w=
taxes due on
M~ii"':pII!.~-!dL'~~_
lJ.'he bills of thiG se
November 24, 1964
---""f#7""':""I"-~~-
They 1dll be accepted at face value in
June
~ 1965
, and to the extent
are not presented for this purpose the face amount of these bills mIl be payable yTi t
out interest at maturi ~y'.
1965
, incomc-,,-a1 n
Taxpayers desiring to apply these bills in payment of June
~
Z- dfi6 taxes have the privilege of surrendering them to any
Federal Reserve Bank or Bre.neh or to the Office of the Treasu:cer of the United states
l1ashillGton, not more tha.n fifteen days before
June 15, 1965
W
therefor shm·Tine the face anount of the bills so surrendered.
SUbl:ri. tted in lieu of the bills on or belore
June. 15, 1965
W-
, and receiving receipt
These receipts may be
,to the District Direc
oi' Internal Revenue for the District in llhich such taxes are payable.
The bills 1-r.i.lJ
issued in bearer form on~, end in denominations of $1,000, $5,000, $10,000, $50,000,
$100,000, ~OO,OOO and $1,000,000 (matU1~ty value).
Tenders lrill be received at Federal Reserve Banke and Branches up to the closiIl{
hOU1~,
one-thirty p.m., Eastern Standard time, Tuesday. November 17, 1964 •
-(10)
not be received at the Treasury Department, Hashington.
nrultiple of
:~l,OOO,
cxpre~3cd 011
Tenders
Each tender Iirust be for 'an
and in the case of competitive tenders the price offered must be
-Ghe bD.sis of 100, 1-Tith not more than three deCimals, e. g., 99.925.
li'ra.ctfons TIley not be used.
It is urged tha.t tenders be mo.de on the printed forms
atlJ:
fon-rarded in the special envelopes \·1hich ldll be supplied by Federal Reserve Banks o'
nranches on application therefor.
11t2-
TREASURY DEPARTMENT
-FOR JMMED lATE RELEASE
TREASURY OFFERS $1.5 BILLION IN JUNE TAX BILLS
The Treasury Department, by this public notice, invites tenders for
~1,500 ,000,000, or thereabou ts, of 2l0-day Treasury bills, to be issued
on a discount basis under competitive and noncompetitive bidding as
~reinafter provided.
The bills of this series will be designated
Tax Anticipation Series, they will be dated November 24, 1964, and they
will mature June 22, 1965. They will be accepted at face value in
payment of income taxes due on June 15, 1965, and to the extent they
are not presented for this purpose the face amount of these
bills will be payable without interes t at maturity. Taxpayers desiring
to apply these bills in payment of June 15, 1965, income
tues 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, 1965, and
receiving receipts therefor showing the face amount of the bills so
surrendered. These receipts may be submitted in lieu of the bills on or
before June 15, 1965, to the District Director of Internal Revenue for
ilie District in which such taxes are payable. The bills will be issued
in bearer form only, and in denominations of $1,000, $5,000, $10,000,
~50,OOO, $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, Tuesday,
November 17, 1964. Tenders will not be received at the Treasury
Department, Washington. Each tender must be for an even mUltiple of
H,ooo, and in the case of competitive tenders the price offered must
~expressed on the basis of 100, with not more than three decimals, e.g.,
~9,925, 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
there for.
Banking institutions generally may submit tenders for account of
Customers provided the names of the cus tomers are se t 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.
~'1402
- 2 All bidders are required to agree not to purchase or to sell, or
to make any agreements with respect to the purchase or sale or other
disposition of any bills of this issue at a specific rate or price,
until after one-thirty p.m., Eastern Standard time, Tuesday, November 17
1964.
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 accepted in
full at the average price (in three decimals) of accepted competitive
bids. Payment of accepted tenders at the prices offered must be made
or completed at the Federal Reserve Bank in cash or other immediately
available funds on November 24, 1964, provided, however, any qualified
depositary will be permitted to make payment by credit in its Treasury
tax and loan account for not more than 50 percent of the amount of
Treasury bills allotted to it for itself and its customers up to any
amount for which it shall be qualified in excess of existing deposits
when so notified by the Federal Reserve Bank of its District.
The income derived from Treasury bills, whether interest or gain
from the sale' or other disposition of the bills, does not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills does not have any special treatment, as such, under the
Internal Revenue Code of 1954. The bills are subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but
are exempt from all taxation now or hereafter imposed on the principal
or interest thereof by any State, or any of the possessions of the
United States, or by any local taxing authority. For purposes of
taxation the amount of discount at which Treasury bills are originally
sold by the United States is considered to be interest. Under
Sections 454 (b) and 1221 (5) of the Internal Revenue Code of 1954 the
amount of discount at which bills issued hereunder are sold is not
considered to accrue until such bills are sold, redeemed or otherwise
disposed of, and such bills are excluded from consideration as capital
assets. Accordingly, the owner of Treasury bills (other than life
insur-ance companies) issued hereunder need include in his income tax
return only the difference between the price paid for such bills,
whether on original iss~e 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
Washington, D. C.
IMMEDlA TE liF...LEASE
FRIDAY
,
NOVEMBER
D-1403
11_1q64
-;>RlL"1M:I}("ARY DATA ON IMPORTS FOR CONSl:MPTION OF UNMANUFACTURED LEAD AND ZINC CHARGEABLE TO THE QUOTAS ESTABLISHED
BY PRESIDl!.'NTlAL PROCLAMATION NO. 3257 OF SEPTEMBF.R 22, 1958, AS MODITIED BY '!'HE TARD'F SCHEDULES or '!'HE
lJNITJi.:D STATES, WHICH BECAME EITJI',cTIVE AUGUST 31, 1963.
OUAR'l'~Y
QUOTA PERIOD IMPORTS -
ITEM 925.01-
October 1, 1~64 - December 31, 1~64
Ootober 1, 1~64 - November
1~64
6,
t or
as noted)
ITEM 925.04-
ITEM 925.02-
ITEM 925.03-
S
I
s
Umrrought led ani
led waste and scrap
Lea4-beariDg ores
and me. terials
Country
of
Production
S
I
.
:
I
Zine-beariDg ores and
materials
. s Umn-ought zinc (exoept alloys
:
of zinc aDd zinc dust)
zinc waste aDd sera,
&Dd
:
:
Au tral1a
Import.
11,220,000
11,220,000
22,540,000
6,626,~04
Belgium and
Luxemburg (total)
5,040,000
·"3,464,625
13,440,000
"·1,736,766
Bolin&.
Canada
15,920,000
12,700,522
66,480,000
66,480,000
Italy
16,160,000
16,160,000
{formerly Belgian Congo)
14,980,000
15,511,116
6,560,000
···1,826,626
-See Part 2, Appendix to Tariff Sehedules.
"aepublio of South Africa •
••• Import. as et Nevember " 1,64.
18,647,031
70,480,000
25,165,665
6,320,000
12,880,000
••• 5,721,105
35,120,000
11,854,565
3,760,000
...
5,MO,OOO
••• 2,204,640
6,080,000
••• 3,813,265
2,408,4 0 7
2,05i1~~32
14,880,000
yugoslaTia
All other
oountries (total)
37,840,000
36,880,000
..
R,publ1o of the CoDgo
"·Uu. So. Afrioa
···3,356,37,
3,600,000
Mexioo
Peru
7,520,000
15,760,000
••• 3,443,735
6,080,000
6,080,000
11,840,000
17,840,000
TREASURY DEPARTMENT
Washington, D. C.
D-1403
IMMEDIA TE j,F...LUSE
FRIDAY , NOVEMBER·PREL"!M:tNARY
11.1964 DATA
ON IMPORTS feR CONS!.,"APTICN OF UNMANUFACTURED LEAD AND :3INC CRAFGEABLF TO THE CUOTAS ESTABLISHED
BY PRE3IDl<.NTIAL PRCCLAMATIC'N NO. 3257 OF SEPTEMBFR 22, 1958, AS MODITIED BY THE TA.PFF SCH1:DULES Cf 'l'HE
GNrrli;D STATES, WHICH BECAME EITF,cTIVE AUGUST 31, 1963.
OUAR1'c:RLY QUOTA PERIOD -
October 1,
;964 -
!:lecerober
31, 1964
IMPORTS -
Ootober 1,
1964 -
November
6, 1964
ITEM 925.01-
IT:!:M 925.02 *
:rn:M 925.03-
Lea4-bearing orea
and materials
Country
of
Production
(or 'is noted)
UDrrought lead &JUt
lead waste and scrap
IT1:M 925.04*
:
I
I
Zine-bearing orea and
materials
•s UDwrougbt zino (exoept allClf8
:
·
of zinc aDd zinc duat) aDd
zinc waste aDd sera,
Import.
11,220,000
.Au tral1a
11,220,000
22,540,000
6,626,904
Belgium and
Luxemburg (total)
Bol1rlA
Canada
5,040,000
···3,464,625
13,440,000
••• 1,736,766
15,920,000
12,70°11 522
66,480,000
66,480,000
Italy
16 11 160,000
16,160,000
Peru
36,880,000
18 p 647,031
37,840,000
15,511,116
12,880,000
••• 5,721,105
70r400,000
25,165,6 8 5
6,320,000
2,408,407
35,120,000
11,854,565
3,760,000
••• 2,091,932
5.440,000
•••
Republio of the Cougo
(formerly Belgian cango)
lA,9BO,000
So. Urioa
All other
oountries (total)
"·1,826,626
6,560,000
-See Part 2, Appendix to Tariff
of Sout~ Afrioa •
S~hedules.
*.Renub~lc
••• Lm;orta as or November 9. 19640
IN
T1U!:
B"JREAU
or
2,204,640
14,880,000
yugoslarla
PlU:P.A.R:ED
···3,356,37,
3,600,000
Vexioo
'UQ.
7,520,000
CUSTCMS
15,760,000
••• 3,443,735
6,080,000
6,080,000
17,e..o,000
17,840,000
6,000,000
···3,813,265
-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 1-3/16 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 ••••••••••••••••••••••
Ge rmany •••••••••••••••••••
Italy ...•.....•...•.......
Es tab l i shed
TOTAL QllTA
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
Total Imports
Sept. 20, 1964, to
Nov. 9, 1964
Established
33-1/3% of
Total QU9J:_a
1,441,152
239,393
75,807
22,747
14,796
12,853
25,443
7,088
Other, including the U. S.
5,482,509
11 Included in total imports, column 2.
239,393
1,599,886
Imports
Sept. 20, 1964
_ .t,CLNov o. 9..
191>.u
1/
TREASURY DEPAR'lMElIT
Washington, D. C.
IMMED lATE RELEASE
')Q')
(~ t. J
i.....
FRIDAY, NOVEMBER 13,1964
D-1404
Prel.im.inary data on imports for consumption of cotton an:i cotton waste chargeable to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amerxled, ani as modified by the Tariff Schedules of the
United States which became effective August 31, 1963.
(The country designations in this press release are those specified in the apperxlix to the Tariff Schedules of the
United States. There is no political connotation in the use of outmxied names.)
"
Country of Origin
Egypt and Sudan ••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
China ••••••••••••••••••••••
Mexico •••••••••••••••••••••
Brasil •••••••••••••••••••••
Union of Sorlet
Socialiat Republics ••••••
Argent~ •••••••••••••••••
Haiti ••••••••••••••••••••••
Eeuador ••••••••••••••••••••
!I Except Barbados, Bermuda,
Y Eltcept Nigeria and Ghana.
Established Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
Imports
Countrx of Origin
Established Quota
Honduras ••••••••••••••••••••
Par~ ••••••••••••••••••••
1,782,990
!I
475,l24
5,203
~J
5J
2Y7
9,333
Colombia ••••••••••••••••••••
Iraq ••••••••••••••••••••••••
British East Africa •••••••••
Indonesia and Netherlands
New Guinea••••••••••••••••
British W. Indies •••••••••••
Riger.ia •••••••••••••••••••••
British W. Africa. ••••••••••
other. including the U.s ....
Jamaica, Trinidad, and Tobago.
.
Cotton 1-1/8" or more
Established Yearly Quota - 45.656.420 lbs.
Imports Aug9!t 1. 1964 - November 9.
Staple Length
1-3/8ft or more
1-5/32" or mre
and umer
1-3/St. (Tanguis)
1-1 18ft_
or more
am
under
1964
Allocation
Imports
39_590.778
39,590,778
1..500.000
9,665
752
871
l24
195
2.24D
n.J88
21,)21
5,m
16.004
Imports
TREASURY DEPAR'llmIT
Washington, D. C.
IMMmIATE RELEASE
FRIDAY, NOVEMBER 13,1964
D-1404
Prel.1.ai.na.r;r data on imports for consumption of cotton am cotton waste chargeabl.e to the quotas established by
Presidential Proclamation No. 2351 of September 5, 1939, as amenied, am as modified bY' the Tariff Schedules or the
United States which became effectiVe August 31, 1963.
(TIle country designations in this press release are those specified in the appenii.x to the Tarifr Schedules of the
United States. TIlere is no political cormotation in the use of ou'bDJded names.)
"
- November
Country ot Origin
Established Quota
Established Quota
Country or Origin
Imports
Egypt. and Sudan ••••••••••••
783,816
Honduras ••••••••••••••••••••
Peru •••••••••••••••••••••••
India and Pakistan •••••••••
2J.7,952
Paraguar ••••••••••••••••••••
colombia•••••••••••• ~ ••• ~ •••
Iraq ••••••••••••••••••••••••
British East Africa •••••••••
Ch.1.l\a.. • • • • • • • • • " ~ • • • • • • • • ••
Mexico •••••••••••••••••••••
Brasil •••••••••••••••••••••
Union ot Sonet
Socialist Republics ••••••
.Arg.rt1Da.. •••••••••••••••••
Haiti ••••••••••••••••••••••
~r
Y
Y
••••••••••••••••••••
2,003,483
1,370,791
8,883,259
618,723
1,782,990
1I
475,l24
5,203
2'5T
9,333
Except Barbmos, Benluda. Jamaica. Tr1n1dad,
Except Rigeria aD! Ghana.
am
71,388
21,)21
1. 1%4 - November 9. 1964
St.apl.e Length
or .:>re
1.-5/32" or IIIDre and under
1-3/8" (T~ .. )
o r ~.rea
.....t.
124
195
2,240
New Guinea••••••••••••••••
1-3/8tt
~~. .
871
British W. Indies •••••••••••
~J 81ger.ia •••••••••••••••••••••
"" Br1tiab V. At'rica. ••••••••••
Other, :h'C1JJding the U.s ....
Tobago.
Augg~
752
IDionesi.a and Netherlauis
Cotton l-1Isn or .ore
Established Yearb Quota - 45.656.420 lbs.
Imports
IPMrt.a
~~
All "..Uon
.39.590.778
39,590,778
1.500.000
9,665
Tmpnrts
5,m
1.6,OOt.
..
-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 O11IERWISE
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:
Country of Origin
United Kingdom ••••••••••••
Canada ••••••••••••••••••••
France •••••••••••••.••••••
India and Pakistan ••••••••
Netherlands •••••••••••••••
Switzerland •••••••••••••••
Belgium ••••...••..•..•.•••
Japan ••••.••••.••.••••••••
China ••••.•••••••..•..•••.
Egyp t •••••••••••••••••••••
Cuba ••••••••••••••••••••••
Ge -rma.ny •••••••••••••••••••
Italy ••.•.....•..••.......
Established
TOTAL QlJJTA
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
Total Imports
Sept. 20, 1964, to
Nov. 9, 1964
-
Established
33-1/3% of
Total Quota
1,441,152
239,393
75,807
22,747
14,796
12,853
25,443
7,088
Other, including the U. S.
5,482,509
11
Included in total imports, column 2.
Prepared in the Bureau of Customs.
D-1404
239,393
1,599,886
Imports
Sept. 20, 1964
to Nov. 9. 126h
l'
284
-2-
:
Cormnodity
:
Period and Quantity
:
: Unit: Imports
: of
:
as of
:Quantity:October 31,
Absolute Quotas:
Butter substitutes containing
over 45% of butterfat, and
butter oil •••••••••••••••••••••
Fibers of cotton processed
but not spun •••••••••••••••••••
Peanuts, shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
butter) ••••••••••••••••••••••••
!/ Imports
through November 9,
D-1405
1964.
Calendar Year
1,200,000 Pound
12 lOOS. from
Sept. 11, 1964
1,000 Pound
12 mos. from
August 1, 1964
1,709,000 Pound
Quota Fill
1,549,47
TREASURY DEPARTMENT
Washington
IMMEDIATE RELEASE
FRIDAY, NOVEMBER 13,1964
D-1405
The Bureau of Customs announced today preliminary figures on imports for consumption of the following connnodi ties from the beginning of the respective quota
periods through October 31, 1964:
Commodity
:
:
:
Period and Quanti ty
: Unit
"" Imports
of
as of
""
""
:Quantity:October 31.
Tariff-Rate Quotas:
796
Cream, fresh or sour •• " ••••••••••
Calendar Year
1,500,000
Gallon
Whole Milk, fresh or sour ••••••••
Calendar Year
3,000,000
Gallon
Oct. 1, 1964Dec. 31, 1964
120,000
Head
12
Cattle less than 200 Ibs. each •••
12 mos. from
April 1, 1964
200,000
Head
52
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cusk, and rosefish •••••••
Calendar Year
24,861,670
Pound
Quota Fi
Tuna Fish ••••••••••••••••••••••••
Calendar Year
60,911,870
Pound
37,162
White or Irish potatoes:
Certified seed •••••••••••••••••
Other ••••••••••••••••••••••••••
12 mos. from
114,000,OOO
Sept. 15, 1964 45,000,000
Pound
Pound
1,529
19,8SC
Knives, forks, and spoons with
stainless steel handles ••••••••
Nov. 1, 1963Oct. 31, 1964
Pieces
Cattle, 700 1bs. or more each
(other than dairy cows) ••••••••
69,000,000
Quota Fj'
TREASURY Dt:PjIJ'lnmNT
\'\Taahing t,~ n
IMMEDIATE RELEASE
FRIDAY, NOVEMBER 13,1964
0-1405
The Bureau of Customs announced too.;.);'\' prE'lliminary fi.gures on iJIlports for conswnption of the following commodities frC)ffl the beginning of the respective quota
periods through October 31, 1961.u
:
Commodity
...
Period and Quantity
: Unit
: Imports
: of
:
as of
:Quantity:Octcber 31,
1964
Tariff-Rate Quotas:
Cream, fresh or sour •••••••••••••
Calend.ar Year
Whole Milk, fresh or sour ••••••••
1,500,000
Gallon
3,000,000
Gallon
796,340
Cattle, 700 1bs. or more each
(other than dairy cows} ........ .
Oct. 1. 196L-
").""".~.,..
j~
-"'... ..J~'
12
N~C~
1964
•
120,000
Head
12,755
Head
52,246
from
Cattle less than 200 Ins. each •• ,
Ac;.i':
196h
200,000
Fish, fresh or frozen, filleted,
etc., cod, haddock, hake, pollock, cu.sk, and rosefish ........ .
C..uenc!i-l.("
Y~ar
24,861,670
Pound
Quota Filled
tuna Fish •••••••••••••••••••• e • • •
Calendar Year
60,911,870
Pound
37,162,653
md~ or Irish potatoes:
C~tiried seed •••••••••••••••••
O~er ••••••••••••••••••••••••••
ll4, 000, 000
12 mos. from
Sept .. l;)~ 1964
45,000,000
Pound
Pound
1,529,280
19,850,343
Knives, forks, and spoons with
8~inless steel handles ••••••••
--
No"'.
J~
Oct.
.J~J. .f
1963-
1964
69,000,000
Pieces
Quota Filled
-2-
s
s
s
Conunodity
Period and Quantity
I
I
Unit: Imports
of
I
as ot
IQuantity:October 31,
Absolute Quotas:
Butter substi:tn tes containing
over 45% of butterfat, and
butter oil •••••••••••••••••••••
Calendar Year
Fibers of cotton processed
but not spun •••••••••••••••••••
12
1II)S.
1964
1,000 Pound
from
August 1, 1964
1, 709,000 Pound
!/ Imports
through November 9,
D-140S
1964.
12
Quota Fille
from
Sept. 11,
Peanuts, shelled or not shelled,
blanched, or otherwise prepared
or preserved (except peanut
butter) ••••••••••••••••••••••••
1,200,000 Pound
1l0S.
1,549,478
TREASURY DEPAR'JHENT
WASHINGTON
DOmDIATE RELEASE
FRIDAY, NOVEMBER 13, 1964
D-1406
The Bureau of Customs has announced the following prelimiDa.ry'
figures showing the imports for consumption from January 1, 1964,
to October 31, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:
Commodity
: Established Annual : Unit Of!
r:o~;s
~ Quota Quantity ; Quantity i October 31, 1964
680,000
Cigars •••••••••
160,000,000
Number
1l,621,654
Coconut oil ••••
358,400,000
Pound
Quota Filled
Cordage ••••••••
6,000,000
Pound.
5,899,398*
Tobacco ••••••••
5,200,000
Pound.
3,954,249
*Imports through November 9, 1964
Gross
219,sn
Buttons ••••••••
TREASURY DEP AR'lMENT
WASHINGTON
IMMEDIA TE RELEASE
FRIDAY, NOVEMBER 13, 1964
D-1406
The Bureau of Customs has annoWlced the following preliminary
figures showing the imports for consumption from January 1, 1964,
to October 31, 1964, inclusive, of commodities under quotas
established pursuant to the Philippine Trade Agreement Revision
Act of 1955:
Commodity
Annual
.. Established
Quota Quantity
Imports
Unit of
as of
Quantity • October
31, 1964.
.
Gross
Buttons ••••••••
680,000
Cigars •••••••••
160,oOC,000
Number
11,621,654
Coconut oil ••••
358,400,000
Pound
Quota Filled
Cordage ••••••••
6,000,000
Pound
5,899,398*
Tobacco ••••••••
5,200,000
Pound
3,954,249
*Imports through November 9, 1964
219,891
TREASURY DEPARTMENT
(
FOR IMMEDIATE RELEASE
November 13, 1964
SUBSCRIPl'ION AND AIWI'MENr FIGURES FOR TREASURY'S CURRENI' CASH OFFERING
The Treasury Department today announced the subscription and allotment
figures with respect to the current offering of 4~ Treasury Notes of Series
1)..1966, due May 15, 1966.
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
Dallas
San Francisco
Treasury
Totals
Total Subscriptions Received
$ 112,190,000
12,831,365,000
393,900,000
949,430,000
460,396,000
625,549,000
2,435,342,000
449,405,000
203,600,000
425,159,000
384,751,000
2,016,321,000
5,933,000
Total
Allotments
$ 132,622,000
7,576,837,000
78,274,000
183,453,000
99,938,000
157,659,000
491,411,000
125,050,000
62,552,000
121,836,000
90,630,000
392,615,000
5,933,000
$21,899,947,000
$9,518,810,000
Subscriptions by investor classes:
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 which
received full allotment ---------------Commercial Banks (own account) --------All Others ----------------------------Total
Fed. Res. Banks & Govt. Inv. Accta. ---Grand Total
D-1407
$
164,784,000
8,793,786,000
6,499,221,000
$15 ,457,791,000
6,442,156,000
$21,899,947,000
TREASURY DEPARTMENT
..
FOR RELEASE A.M. NEHSPAPERS,
rue sday, November 17, 1964.
(
November 16, 1964
RESULTS OF TREASURY'S WEEKLY BILL OFFERING
The Treasury Department announced last evening that the tenders for two series
Treasury bills, one series to be an additional issue of the bills dated August 20, 1
and the other series to be dated November 19, 1964, which were offered on November 1
were opened at the Federal Reserve Banks on November 16. Tenders were invited for
$1,200,000,000, or thereabouts, of 9l-day bills and for $1,000,000,000, or thereabou
of 182-day bills. The details of the two series are as follows:
ACCEPTED
COMPETITIVE BIDS:
RANGE OF
91-day Treasury bills
:
maturing February 18, 1965:
Approx. Equiv. :
Price
Annual Rate
:
99.093 a/
3.588%
:
99.089 3.604%
:
182-day Treasury bills
maturing May 20, 1965
Approx. Equ:
Price
Annual Rate
High
98.098 bl
3.762%
Low
98.090 3.776%
Average
99.090
3.600% !I :
98.093
3.772% 1
a/ Excepting one tender of $200,000; b/ Excepting four tenders totaling $1,030,000
75% of the amount of 91-day bills bid-for at the low price was accepted
66% of the amount of 182-day bills bid for at the low price was accepted
TOTAL TENDERS APPLIED FOR AND ACCEPTED BY FEDERAL RESERVE DISTRICTS:
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
Ap~lied
For
$ 33,658,000
1,592,438,000
32,292,000
26,751,000
12,662,000
43,303,000
214,313,000
36,352,000
20,806,000
30,872,000
26,491,000
87 2029 2°00
$2,157,227,000
·
·
··
···
·
·
··
·
AcceEted
Acce,eted
• AE~lied For
$ . 17,408,000 •• $ 24,286,000 $ 12,654,
803,063,000
1,341,006,000
728,876,
11,292,000
8,161,000
3,161,
26,751,000
36,797,000
23,597,
12,862,000 •
12,224,000
9,324,
ll, 061, 000
7,108,
34,253,000
146,298,000 •
186,318,000
106,538,
29,102,000
1l,907,
13,907,000
15,681,000
8,333,000
5,301,
30,622,000
12,423,
12,455,000
16,479,000 •
8,663,000
4,343,
50,279,000
142,687,000
75,199,
$1,200,090,000 sf $1,811,958,000 $1,000,431,'
c/ Includes $261,525,000 noncompetitive tenders accepted at the average price ot 99.
d/ Includes $76,448,000 noncompetitive tenders accepted at the average price of 96.0
On a coupon issue of the same length and for the same amount invested, the return
these bills would provide yields of 3.68%, for the 91-day bUls, and 3.90%, for t
182-day bills. Interest rates on bills are quoted in tems of bank discoWlt with
return related to the face amount of the bills p~b1e at maturity rather than th
amount invested and their length in actual number of days related to a 360-dq 18
In contrast, yields on certificates, notes, and bonds are computed in terms ot in
terest on the amount invested, and relate the number of days rernai ning in an inte
payment period to the actual nUlllber of cia1's in the period, with semiannual caupou
i f more than one coupon period is involved.
Y
a
a
TREASURY DEPARTMENT
J~ R.ElEA3S
A.H. NEl-lSPAPERS,
1l~5day, Novemher 17, 196h.
-
November 1o, 1964
RESULPS OF Tfiti'ASUlty'S ~-JE~~KLY BILL OFFI~RIHG
The Treasury Department announced las·t evening that the tenders for two series of
rea3ury bills, one series to be an additional issue of the bills dated AUflUst 20, 1964,
nd the other series to be dated November 19, 1964, which were offered on November 10,
ere opened at the Federal Reserve Banks on November 16. Tenders were invited for
1,200,r)Oo,0?0, or thereabou.ts, of 91-day bills and for $1,000,000,000, or thereabouts,
f 182-day b:.Llls. The details of the two series are as follows:
ACC~?1'ED
rr;E 0:<'
OO'~TIrIVE
BIDS:
High
Low
Avera!3e
91-day Treasury bills
maturing February 18, 1965
Approx. Equiv.
PriGe
Annual Rate
99.093 a7
3.588%
99.089 3.604%
99.090
3.600% 1/
·
··
·
·
·
182-day Treas~J bills
maturine May 20, 1965
Approx. Equiv.
Price
Annual Rate
98.098 bT
3.762%
98.090 3.778%
98.093
3.772%
Y
bl
~Excepting one tender of $200,000;
Excepting four tenders totaling $1,030,000
75~ of the amount of 91-day bills bid-for at the low price was accepted
68% of the amount of 182-day bills bid for at the low price was accepted
)TA1 TE:l~ERS APPLI~~D P'OR AND ACCEPTED BY FEDERAL R£S,:RVE DI3TR!.CTS:
District
Boston
:lew- York
Philadel_Jhia
Clp.veland
lichmond
Atlanta
~Hcago
St. Louis
)!inneapJl1.s
Kansas City
Dallas
San francisco
TOTALS
Applied For
$ 33,658,000
1,592,438,000
32,292,000
26,751,000
12,862,000
43,303,000
214,373,000
36,352,000
20,806,000
30,872,000
26,491,000
87 z029 z000
$2,157,227,000
Accepted
$ 17,408,000
803,063,000
17,292,000
26,751,000
12,862,000
34,253,000
146,298,000
29,102,000
15,681,000
30,622,000
16,479,000
50,279,000
$1,200,090,000
Applied F~_
$ 24,286,000
1,347,006,000
8,161,000
36,797,000
12,224,000
ll, 061, OJO
186,378,000
13,907,000
8,333,000
12,~55,000
8,663,000
1l~2,687,000
£I
$1,611,958,000
Accepted
$ 12,654,000
728,876,000
3,161,000
23,597,000
9,324,000
7,lJ8,OOO
106,538,000
11,907,000
5,301,000
12,423,000
4,343,000
75,199,000
$1,000,431,000 ~/
Includes $261,525,000 noncompetitive tenders accepted at the average price of 99.090
fucludes $76,448,000 noncompetitive tenders accepted at the average price of 98.093
On a coupon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.68~, for the 91-day bills, and 3.90%, for the
182-day bills. Interest rates on bills are quoted in terms of bank discount with the
return related to the face amount of the bills payable at maturity rather than the
aJnount invested and their length in actual number of days related to a 360-dq year.
In contrast yields on certificates, notes, and bonds are computed in tems of interest on the amount invested, and relate the number of days remaining in an interest
payment Deriod to the actual number of days in the period, with semiannual compounding
if more
one coupon period is involved.
than
D-ILce
1011 RKWSI A. M. NEWSPAPERS,
VedDHda" IOYeRer 18, 196k.
RESULTS
or
......... 17, 1SJ6k
TIlUStJRltS tJ..S BILLlOli 210-1».1 TAl AftIClPAtIOi BILL 01'1111.
The Treuury DepartaeDt annouaoed 1nt .ftldlll tbat
tu .....n tor I1,SOO,OOO,o
or thereabout., or Tax ADtlc1pat1oa Seri•• 21o-dq !nu1ll7 t4118 to ... _tell ....
bel" 21a, 196h, aDd to _t.UN JuDe 22, 1965, vh1oh .... ott.nd oa ......... 10, . . . .,
at t.he federal Reae:rn BaDb on Ifoftaber 11.
The detail. or thi. i ••ue are ••
Total applied for -
13,700~9,OOO
-
1,$01,00$,000
Total accepted
lUge
or
(1aol.... l202,n9,OOO _Mn4 _ •
........t1t1" basta aM. ao.pteta ill
till at ,be
pn.oe _ _ bel..-)
-enc.
acoepted eOllpetitlw b1da1
(baep\1DI a1x t.uden total1_ ,),100,000
- ",.89S Iq1l1ftlea\ rat.
H:1ch
Low
-
A....rag.
-
(96S or the
91.871.
97.877
aaowa\ btel tor
••
n
•
• • •
•
Appl1ecl lor
476,~O,OOO
112,,,0,000
llh,991,OOO
US,'ll,OOO
Chicago
]87,$)0,000
lAaeas Qltl
DallA.
SaD Franciaco
•
•
ToUl
....~
1,SlO,2SO,OOO
6),OTS,OOO
Louie
KinD_polis
1.QSS·
1.6)".
ll9l;siS,ooo' liIli,a
B1elDoDd
AtlaDta
st.
).6OH .... _
at tbe low prt._ ... aeoeptecl)
Tet.al
cn....
cl1aoouu\ approz.
tI
D1etriet
Jew York
Philadelphia
la.Dd
or
•
h4enJ. iMel'ft
i08i01i
!I
tOlJ.o1ql
ao,S70,ooo
)1,))0,000
1)6,16$,000
Tk,473,OOO
323,800,000
1.$6,)90,000
)a',lko,OOO
Sb,SlS,OOO
S7,$,000
121,390,000
28,8)0,000
49,16$,000
bl,)1),OOO
121 ,lOO,000
269,280,000
Total Il, 700 ~9,000
tl,SOl,OOS,OOO
OIl • COllpOD i . . . of the .... leegt.h and tOf' \be . . . . . . .t 1IlYutecl, t.1II n ....
the. . b1118 would proYida a lielcl of l.16S. lIltereet ratea 011 bUla an ca-''' II
te.... of but di.oo_t with tbe retvA related to the fa. _0UDt. ot ,be b1l.18 pa.J
at _turtt7 rather thaD t.be aJI01Dlt i.ntH aDd their' J.eact.h 18 aetaal. ••her et •
related to a 36O-da7 year. In eoatrut, 71elcIa 011 eer\U1..t.a, DOtea, ad ......
COIIPut.ed in teru of iat.en.t 011 tt. uoUBt 1aftated, aDd relate ,be I I ' " .f _
r.ailling ill an 1J1t.erest pa,..m. period to t be aeta]. DlJIIber of cIaJ'8 111 U. JIOI'I*
1d.tb eea1anaaal oo.poUDCliDg it _1'8 t.baD ODe eo1lpOD period 1. 1Irf'o1yed.
TREASURY DEPARTMENT
JLt 1~L1~ASE A. ;\;. ,im:SJ?APERS,
~esday, l~ovember 18, 1964.
November 17, J.9b4
;mS1J1TS o!:" TREASUR.Y'S $l.S SI1LIOi~ 2l0-DAY TAX Ai-J'IICIPATIul~ 131LL CFF81Ul'IG
Tile Treasury Gepartment announced last evenin""o that the tenders for 'IV,
''''1 500 , QUO , 000 ,
r thereabouts, of lax Anticipation Series 210-day Treasury bills to be dated Novemler 24, 196L~, and to mature June 22, 1965, whic!': were offered on ~ovember 10, were opened
t tile lederal ::eserve Banks on l~ovember 17.
The details of this issue are as follows:
Total applied lor Total accepted
:$3,700,419,000
1,501,005,000
rtar.ge of accepted competitive bids:
ill.~h
Low
Average
- 97 .875
- 97 .574
- 97.877
(includes $202,919,000 enteren on a
noncompetitive basis and accepted in
full at the average price shown belOW)
(Excepting six tenders totaling $3,lUU,UUO)
Equivalent rate of discount approx. 3.609~ Der
"
"II
II
"3.645;£ II
II
II
1\
"
It
3 •63 9~;b
II
II
11
(98,t of the amount bid for at the 10.'1 price was accepted)
Total
Total
Acce,eted
A,eE1iec. For.
$ 115,631,000
J; 193,595,000
476,640,000
1,510,2,0,000
49,340,000
112,340,000
115,931,000
334,991,000
54,575,000
63,075,000
57,150,000
80,570,000
121,390,000
387,530,000
28,830,000
37,330,000
49,765,000
136,165,000
41,373,000
74,473,000
121,100,000
323,800,000
269z280~000
1.146,300 zOOO
$1,501,005,000
Total $3,700,419,000
VOn a coupon issue of the same length and for the same amount invested, the return on
these bills loJould provide a yield of 3.761.>. Interest rates on bill~ are quoted in
terms of banle discount with the return related to the face amo\Jnt of the bill::: payable
at rnatw-ity rather than the amount invested and their length in actual number of days
related to a 360-day ,vear • In contrast, yields on certificates, notes, and bonds are
computed in tern;E' of interest on the amount invested, and relate the number of days
remainj ns in an interest payment period to the actual number 01' days in the period,
With semia:mual compounding if more than one coupon period is involved.
Federal deserve
District
Boston
i\JeH York
Philadelphia
Cleveland
,1.ichrnond
Atlanta
Chicago
St. Louis
"Jin:leapoli[
J\ansas City
Dallas
Sa.n Francisco
"Q~
. ..,J
- 2 -
Genuine currency has a life-like portrait, the
fine lined border is clear and distinct, the numbering
is evenly spaced and even in appearance, and the paper
is distinctive with inserted colored threads evident.
Counterfeit currency has a lifeless portrait, the
fine border lines are not clear or distinct, and the
numbering is often badly spaced and uneven in appearance.
The Secret Service requests that if a counterfeit
is received, do not return the note.
If
~essible,
try
.,J.o delay the passer by pretext and telephone the I'elic.,e
or -the
~ecreL
Seluiee.
If the passer leaves, write down
his description and, if applicable, note the license
number of his car.
Chief Rowley is confident that with the public's
a..help counterfeiting will continue to be~unprofitable
venture for the criminal.
November 17, 1964
FOR D.NEDIATE RELF..ASE
?QE;
oJ \J
SECFiET SERVICE CHIEF WARNS AGAINST USE
OF RO"-US MONEY DURDJG HOLIDAYS
-~
James J. Rowley, Chief of the United States Secret
Service,
~ a1ert~
merchants and other money handlers
to be on guard against counterfeit money during the
approaching Christmas shopping season.
At this time
of the year merchants are particularly vulnerable to
loss from counterfeit note passers.
Counterfeiting of United States currency reached
an all time high during the past fiscal year.
In
dollar terms, of the $7,752,450 in counterfeit taken
by the Secret Service, only $530,434 resulted in a loss
to the public.
In other words, only one out of every
twelve known counterfeits manufactured resulted in a
loss to the public.
!~he
counterfeit note passer can only be successful
when merchants fail to examine currency received in the
normal course of their business.
A closer look at our
-
currency by the merchant and his employees would make it
more difficult for those passing bogus bills during the
h!ight of the Christmas shopping season) "
cl4
..
;JfC-.'HM., (J~
Chief Rowley offers a few pointers of things to
loek for in detecting counterfeit.
TREASURY DEPARTMENT
November 17, 1964
FOR IMMED IA TE RELEASE
SECRET SERVICE CHIEF WARNS AGAINST USE
OF BOGUS MONEY DURING HOLIDAYS
James J. Rowley, Chief of the United States Secret Service,
today alerted merchants and other money handlers to be on guard
against counterfeit money during the approaching Christmas
shopping season. At this time of the year merchants are
particularly vulnerable to loss from counterfeit note passers.
counterfeiting of United States currency reached an all time
high during the past fiscal year. In dollar terms, of the
$7,752,450 in counterfeit taken by the Secret Service, only
$530,434 resulted in a loss to the public. In other words, only
one out of every twelve known counterfeits manufactured resulted
in a loss to the public.
"The counterfeit note passer can only be successful when
merchants fail to examine currency received in the normal
course of their business.
A closer look at our currency by the
merchant and his employees would make it more difficult for those
passing bogus bills during the height of the Christmas shopping
season," Chief Rowley said.
Chief Rowley offers a few pointers of things to look for in
detecting coun terfe i t.
Genuine currency has a life-like portrait, the fine lined
border is clear and distinct, the numbering is evenly spaced and
even in appearance, and the paper is distinctive with inserted
colored threads evident.
Counterfeit currency has a lifeless portrait, the fine border
lines are not clear or distinct, and the numbering is often badly
spaced and uneven in appearance.
The Secret Service requests that if a counterfeit is received,
do not return the note. If the passer leaves, write down his
description and, if applicable, note the license number of his car.
Chief Rowley is confident that with the public's help
Counterfeiting will continue to be an unprofitable venture for the
criminal.
000
D-14l0
- 3 -
and exchange tenders will 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 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 subjec1
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 Uni ted
local taxing authority.
st~tes,
or by 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 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 actuail
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.
298
- 2 -
decimals, e. g., 99.925.
P'r&ctlons 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
nam~s
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 gua.ra.nty 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 'l'reasury 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
August 27, 1964
fl*+
ing until maturity date on February 25, 1965
,(
$
2~00
90
or
days remain-
fl8f
) and noncompetitive tenders for
'fi§f
$ 100,000 or less for the 181 -day bills without stated price from any one
~
(20)
bidder will be accepted in :f'ul1 at the a.verage price (in three dec1ma.ls) of' accepted competitive bids f'or the respective issues.
Settlement for accepted ten-
ders in accordance with the bids must be made or completed at the Federal Reserve
Banks on
November 27, 1964
iMf
, in cash or other immedia.tely available funds or
in a like face amount of Treasury bills maturing
November 27, 1964
------~,~~~-----
•
Cuh
299
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
November 18, 1964
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 $ 2,200,000,000 , or thereabouts, fOI
cash and in exchange for Treasury bills
of $2'201~'000
90
mat~ring
W
November 27, 1964 , in the amour
:rn
, as follows:
-day bills (to maturity date) to be issued
+Sf
in the amount of $1,200,000,000
November 27, 1964
:w
,
, or thereabouts, represent-
f¥t
ing an additional amount of bills dated _A_u. . .gu_s_t-r:::2'T7...
,_1_9_6_4__
and to mature
amount of $
February 25, 1965
-f4f
902~000
=ttif
, originally issued in the
,the additional and original bills
to be freely interchangeable.
181
-day bills, for $ 1,000,000,000 , or thereabouts, to be dated
(11)
-~
November 27, 1964 , and to mature
~
May
27~65
---~~-~~~------
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,
on~-thirty
p.m., Eastern Standard time,
Monday, November 23, 1964
fl&t
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 tb
price offered must be expressed on the basis of 100, with not more than three
TREASURY DEPARTMENT
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 November 2',1964, in the amount of
$ 2,201,715,000, as follows:
90-day bills (to maturity date) to be issued November 27, 1964,
in the amount of $1,200,000,000, or thereabouts, representing an
additional amount of bills dated Au guS t 27,1964,
and to
mature February 25,1965, originally Issued in the amount of
$902,006,000i the additional and original bills to be freely
interchangeab e.
181-day bills, for $ 1,000,000,000, or thereabouts, to be dated
November 27, 1964, and to mature
~11y 27, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidd lng as hereinafter provided, and at
maturity their face amount will be ;--'.1.yable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000. $500,000 and $1,000,000
(maturl ty value).
Tenders will be received at Federal Reserve Banks and Branches
one-thirty p.m., Eastern Standard
time, Monday, November 23, 1964.
Tenders will not be
received at the Treasury De~artment, Washington. Each tender must
be for an even multiple of $1,000, a:1d 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 he made on the printed forms and
forwarded in the spec 1al enve lopes \.rhic h will be supplied by Federal
Reserve Banks or Branches on applicRt10n therefor.
up to the closing hour,
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
~ount of Treasury bills applied for, unless the tenders are
aCcompanied by an express guaranty of payment by an incorporated bank
Or trust company.
D-1411
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ 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
August 27 ,1964,
~O-days remaining until maturit¥ date on
February 25,1965) and noncompetitive tenders for ~ 100,000
or less for the 18~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 ir. accordance with the bids must be
made or completed at the Federal Reserve Banks on November 27, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing November 27,1964Cash 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 T~easury bills and govern the
conditions of their issue. Copies of the circular may be obtained from
any Federal Reserve Bank or Branch.
000
-
.)
-
AU'lH\
(11'('
exempt. from all tnxation now or hereafter imp08cc.l on the princIpal or
Jntcrc~t
Lhercof hy [my Sl.ate, or any of the pOBGessions of the Un.ttcd States, or b J, any
locD. L tnx.i.nr: auLhor.tty.
For purpoGcfJ of ttlxat:i.on t.he amount of cliocount at which
'l'reasnry ldlls nre origInally sold by the United States is considered to be interest.
Under Scctions 4,54 (b) and 1221 (5) of the Internal Revenue Code of la54
the runount of discount at vhich bills issued hereunder are sold is not considered
to accrue until such bills arc sold, rec.leemed or othenfise disposed of, and such
bills
0.1'(' e)~cludt:d
from cOI1Ginf'rntion m; cq) t tal fl,Jl;Ct::;.
/I.ccordingly, the mmer
o:\.' 'l'rcaGury b:U.ls (other l·]p.m It.-i'e inGurancc companieG) issued hereunder need include 1n his income tax return only the difference behrccn the price paid for sud
bills, ,·,hethel' on oriGinal
i~;Gue
or on
~;nb8er]llCnt
pm'chaGe, and the amount actual
received eithcr uI)on sale or redemptJon at maturity durinG the taxable year for
"'hich the return is mrule, as ordinary cai.n or loso.
'l'reasur:-f Department Ci.rcular No. ~l8 (current revision) and this notice, pre
scribe I;he terms 01' the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserv-e Bank or Branch.
- 2 -
-
AIDIfI.
banking institutions will not be penni tted to subml t tenders except for their own
nccotU1t.
Tenders ,vill be received
VI
LllOut tlcpOG:Lt from incorporntr.:;d banks and
trust companies and from responsible and reco8;nized tlenlers in investment securities.
Tenders from others must be nccompantetl by pn,yment of 2 percent of the fa.ce amoimt
of Treasury bills applied for, unless the tenders are accompanied by an express
euaranty of payment by an incorporated banle or trust company.
Inunediately after the closinc; hour, tenders will be opened at the Federal Re ..
serve Bonles and Branches, follmlinc "hi ch Fublic announcement 1vill be made by the
Treasury Department of the omount and. price range of ac-ccpted bids.
~'hose
submlt-
tinr, tenders vrill be advised of the acceptance or rejecLion thereof. "The ,Seoretary
of'the 'l'reasury
e;~ressly
reserves the riGht to accept or reject BIl? or all tende!ls,
in ,·,hole or in part, and his nction in any such respect shnll be final.
to these reservations, noncompeti ti ve tenders for
*
200 000
(io)
Subject
or less 1vi thout
stated price from anyone bidder vrIll be accepted in full at· the average pricel .. (in
three decimals) of accepted competitive bids.
Settlement for accepted tenders in
accordance vrith the bids must be made or completed at the Federal Reserve Barlie on'
November 30, 1964
, in cash or other inunedintely avnilo.ble funds· or in a li1m
(11)
face amount of Treasury billG maturinG·
November 30. 1964.
Cash and exchange
(12 )
tenders "Till receive equal treatment.
Cash adjustments will be made ·for differ ..
ences betvTeen the par value of maturinr; bills accepted in exchange anll, the i;:;.sue
pr:lce of the
nC'l-T
bills.
The income derived from Treasury bills, ,·mether interdst or gain from tP.e sale
or other disposition of the bills, does not have any exemption, as such, and loss
frolU the sale or other disposition of Treasury bills does not have any spe·cial
trentment, as such, under the Internal Revenue Code of 1954.
The bills !iLre subject
to estate} inheritance, gift or other excise taxes, vlhether Federal or State, but
·1n')
L
~~
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
November 18, 1964
~URY REFUNDS
ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders for
$1,000{0001000
(a)
, or thereabouts, of
in exchange for Treasury bills maturing
of
365
~
-d~
Treasury bills, for cash and
November 30, 1964
----~~(4~)~------
, in the amount
$ 1,004 801,000
, to be issued on a discount basis under competitive and
. 5)
noncompetitive bidding as hereinafter provided. The bills of this series will be
t
dated ___N_o_v_e~m::b:.1e:sr~3=0_,~1;.;;.9.;;.6-.4___ , and will mature
November 30, 1965 , "Then
(7)
(S)
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
Reserv~
Banks and Branches up to the
closing hour, one-thirty p.m., Eastern Standard time, Tuesday, November 24, 196.4.
Tenders
~nll
=w=
not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and in the case of competitive tenders thE
price offered must be expressed on the basis of 100, with not more than three dec~ls,
e. g., 99.925.
Fractions may not be used.
theoe bills will run for
365
=w=
(Notwithstanding the fact that
days, the discount rate will be computed on a bam
dl.count basis of 360 days, as is currentlY the practice on all issues of
billS.)
Treas~
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
~
submit tenders for account of customers
provided the names of the customers are set forth in such tenders.
Others than
TREASURY DEPARTMENT
November 18, 1964
FOR IMMEDIATE RELEASE
TREASURY REFUNDS ONE-YEAR BILLS
The Treasury Department, by this public notice, invites tenders
fur $1,000,000,000, or thereabouts, of 365-day Treasury bills, for
cash and in exchange for Treasury bills maturing November 30, 1964, in
the amount of $1,004,801,000, to b(> issupd :m .:l discount basis under
c~petitive and noncompetitive bidding as hereinafter provided.
The
bills of this series will be dated November 30, 1964, and will mature
November 30, 1965, when the face amount will be payable without
~~rest.
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
~l)OOO,OOO (maturity value).
Tenders will be received at Federal Reserve Ranks and Branches up
to the closing hour, one-thirty p.m., Eastern StandArd time,
Tuesday, November 24, 1964. Tenders wi 11 nDt be received a t the
Treasury Department, Washington. Each tendL'r musL be for an even
wltip1e of $1,000, and in the case of competitive tenders the price
offered must be expressed on the basis of 100, with not more than
three dec imals, e. g., 99.925.
Frac t ions may not be used.
~o~ithstanding the fact that these bills will run for 36S-days, the
discount rate will be computed on a ban t ,., discount basis of 360-days,
as is currently the practice on all issues of Treasury bills.)
It is
urged tha t tenders be made on the prl11 ted fc>r;T}s ;mrl fnrwardprl j n the
special envelopes which will be supplied bv Federal Reserve Ranks 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 ins ti tu t ion;.; will no L be permi t ted to
submit tenders except for their own rlCC(lunt. T('nu('r:-; \\71.11 he
~ceived without deposit from incorporatpd banks and trust companies
and from responsible and recognized dealers in investment securities.
Tenders from others mus t 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 bv an incorporated bank
Or trus t company.
Immediately after the closing hour, tenders will be opened at the
Federal Reserve Banks and Branches, following which public announcement
~ill be made by the Treasury Department of thp Clr:10unt and price range
D-1412
- L -
of accepted bids.
Those submitting tenders will be advised of the
acceptance or rejection thereof. The Secretary of the Treasury expressl
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 accepted in full at
the average price (in three decJmals) of accepted competitive bids.
Settlement for acceptpd tenders in accordance with the bids must be
made or completed at the Federal Reserve Bank on November 30, 1964,
in cash or other immediately available funds or in a like face amount
of Treasury bills maturing November 30, 1964. Cash and exchange tend('rs
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 d
not have any'special treatment, as sllch, under the Internal Revenue Colic·
of1954. 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, of by any
local taxing authority.
For purposes of tdxation the amount of discount
at which Treasury bills are originally sold by the United States is C(Hlsidered 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 dctually 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.
TREASURY DEPARTMENT
WASHINGTON
FOR SIMULTA.NmUS RELEASE
IN CHICAGO AND WASHINGTON
AT 6:45 PM, CST
THURSDAY, NO\TE)ffiER 19, 1964
~ BY THE HONORABLE ROBERT V. ROOSA
UNDER SEx::RETARY OF 'IRE TREASURY PUR M.JHJ.'.l'ARY AFFAIRS
TO THE BAnERS CLUB OF CHICAGO
THE SHERAroN-BLAC~TONE, CHICAGO, ILLINOIS
THURSDA.Y, NOVEMBER 19, 1964, 6:45 PM (CST)
DEBT MANAGEMENT, LIQUIDITY, .AND l«>NmARY STABILITY
The title for these remarks was not selected, or at least not merely
selected, because it seemed a large enough portmanteau to cover anything
I might want to discuss when November 19 arrived.
Nor do I have any wish
to add another voice to the chorus of official and unofficial comments
being heard these days on the proper present posture for monetary policy.
But this title does express, perhaps more effectively than I will be able
to do in talking on at greater length, a fundamental point of view on the
role and usefulness of debt management:
The design and issuance of the public debt must, of course, first
be concentrated upon the effective placement in the market of
obligations to replace maturing issues and to provide new money
as required.
But, in addition, debt management can -- through
the types of issues offered, and the manner and timing of offerings -- be a constructive force in affecting the liquidity of
the economy.
That, in turn, may both exert a useful influence
upon flows of f'unds into or out of the country and also help to
maintain the monetary stability we need for balanced and continuing
growth.
- 2 -
It has been the Treasury's am, for several years now, to develop
somewhat further these larger potentials of debt management.
That is why
I thought it would be useful. to glance backward tOnight __ with special
emphasis upon those dimensions of debt management that reach into our
national policies affecting liquidity and monetary stability -_ to review
what has been attempted, in an effort to learn for the future.
Since
my
own direct association with debt management on the Treasury side has
covered only the past four years, what I say will relate particularly to
this period.
M3 colleagues and I are deeply aware that we owe to our
predecessors and their imaginative innovations a large part of any success
we may have had in our operations, but I would not want to mplicate those
predecessors with responsibility for these reflections on policies of
debt management.
Before turning to wider policy conSiderations, however, it is
important to recognize the persistent and awesome pressure fram the sheer
passage of time that every debt manager must face.
Naive as it sounds
when Simply stated, outstanding securities are always getting shorter,
every day, and unless something is done about it the bulk of the debt
could soon be in very short-term form, requiring continuous replacement.
That inexorable pressure compels every debt manager to think first of
hOUsekeeping, not only for the period of his own tenure but for that of
his successors.
From that pressure cames, incidentally, the common bond
of understanding and continuity that characterizes this aspect of work in
Government, perhaps more than many other kinds of Governmental activity,
fram one Administration to the next.
- 3 The over-riding need is to keep a structure of debt that is spaced
over a number of years ahead, and consists of instruments that are fully
useable in and familiar to a broad and active trading market.
Closely
related is the clear need to keep the over-all burden of interest charges
upon the budget at the practicable minimum determined by a free, competitive market.
Within the boundaries set by respect for those essentials,
there is still considerable scope, however, for purposeful variation in
offerings to further the general objectives of Government policy.
There
are also risks -- the risks not only of unintentional error but also of
attempting to do too much -- risks which have at times in the past seemed
so great as to persuade some that debt management should follow a straightline course Without particular regard for whether the broader impact of
specific financing operations helped or hindered, for example, the current
objectives of the Federal Reserve and monetary policy.
Yet the simple fact that the Government debt exists, and must be
managed in some way, means that the Treasury will necessarily, in any
year, pass through the market ten to fifteen times as large a volume of
Government securities as are represented by all Federal Reserve open
market transactions in that year.
Whether the Treasury wishes to or not,
it is affecting the current supply of short, inter.mediate, or long-term
issues.
SUbject to keeping the amounts of its offerings within the dimen-
sions of the market's distributive capacity, and subject to keeping its
terms reasonably in line with current market quotations, the Treasury can,
- 4and inescapably will, exert a strong, and at times a critical, innuence
upon the markets for most kinds of fixed-interest obligations, throughout
the maturity range.
The challenge is to use that innuence, when the imperatives of the
debt structure leave a range of choice, in the manner best calculated to
further the objectives of Governmental economic policy as a whole, and
particularly, to complement or reinforce rather than to negate the current
efforts of the Federal Reserve.
Under a different system of government --
such as the centralized and unified direction of policy that is common in
Europe, for example -- such a challenge would seem to call for a blueprint
of hierarchical control.
Not here.
For in a government of checks and
balances between and among coordinate bodies, the answer can be found in
communication and harmonization.
seemed to
m~
That, at any rate, is the way it has
during the brief period of my ow Treasury experience, that
the relationship has nourished.
Nonetheless, there are certainly real
risks here, too, and those who call out warnings from time to time on the
need to preserve the independent integrity of the Federal Reserve are perfOrming another essential functj.on of our check and balance process.
Before I turn further to some of the details of our debt management
experience that have seemed to me exciting during these last few years,
I must first remind you, too, of the even larger frame that I meant to
include in saying that we have viewed debt lD&I18gement as a part of over-all
economic policy.
For the Administration and Congress have, I think, been
- 5able in the :past two or three years to respond to a call that has of'ten
come from many sides, including the Federal Reserve itself __ a call for
bringing fiscal policy into a tacit partnership with monetary policy, for
recognizing that there must be a conscious "mix" of fiscal and monetary
policy, and for making clear that monetary policy should not be expected
to take on alone the task of assuring the monetary and financial stability
SO
essential to continued national prosperity and sustained balance in our
international accounts.
The investment tax credit, the liberalized depreciation allowances,
the massive reduction in income taxes -- these were all a part of that
response.
And as these powerful forces were releasing their strength to
help propel a major expansion in the output, employment, and incomes of
the American economy, it was the agreed task of debt management, alongside
the monetary policy determined by the Federal Reserve, to try to help
maintain condi tiona in the credit and capital markets that would suatain
the expansion without cumulating into an inflationary excess of aggregate
demand, or a speculative spiral of securities prices and property values.
At the same time, it was essential to reconcile this task of debt management with another, that of helping to nudge upward those interest rates
which might be able to hold in the United States some of the volatile shortterm funds that could otherwise flow out to foreign markets, aggravating
our already large balance of :payments deficit.
All of this meant that debt management was called upon to find and
fill a useful place in the effort which the Government as a Whole had to
- 6make to help stimulate the domestic economy, to help eliminate the balance
of payments deficit, and to help in maintaining the conditions of monetary
stability essential for both home expansion and external balance.
The place that debt management found in the effort to stimulate the
economy was, very largely, though not only, protective, containing the
potential for inflation that lay in the use of other, more active, stimulators.
While the Government debt has continued to rise -- though, to be
sure, on a declining scale in recent years -- as a consequence of the
Government's expenditure requirements and tax policies, debt management
has been able to keep the financing of the deficits in non-inflationary
form.
Of the total increase in marketable debt of nearly $21 billion
over these past four years, for example, some $20 billion is at this
moment accounted for by the enlarged outstanding total of bonds of five
years or more in maturity.
And all this new debt, on balance, has been
absorbed by non-bank investors.
The total holdings of all Government
securities of all maturities by the commercial banks have actually declined
by about $1-1/2 billion since the beginning of 1961.
At the same time, as the supply of longer-term Government bonds has
been increased, every effort has been made to so adapt the timing and
form of new issues to the current market as to exert a minimum of upward
mpact on longer-term interest rates and to assure the continued ready
aVailabili ty of long-term funds for all other economic uses.
- 7 In fact, while long-term Government bonds have been issued over
the past four years at several times the pace of the preceding four years,
the aggregate volume of funds loaned or invested in the economy as a whole
has been around one-third greater than in the preceding four years, and
interest rates on mortgages, corporate bonds, and municipal bonds are
still 1/4 to 3/8 percent below their highs of 1961.
To be sure, many
other factors were at work as well in producing these results, perhaps
most notably the spur to savings provided by the continuing general
stability of prices.
But at any rate debt management does seem to have
been able to accomplish its main objective, so far as the domestic economy
was concerned -- to finance the grOwing debt in a non-inflationary manner
without impeding the other stimuli being given the economy by fiscal and
monetary policy in the effort to promote expansion.
On the balance of payments side, the main problem for debt management
centered in the behavior of short-term flows of funds, and the interest
rates which to some extent affect them.
For the Federal Reserve's continu-
ing effort to assure a ready availability of credit, unless conditioned in
same way, would mean short-term interest rates so low as to spur an outflow
of funds to other centers that would swamp out the benefits of any other
gains being made toward balance in our over-all external accounts.
One
clear way to help, along with other important methods adapted to this same
need by the Federal Reserve itself, was to add to the market supply of
very short-term issues, notably Treasury bills.
proceeded to do.
This the Treasury has
- 8From January, 1961, to the present, the supply of Treasury bills has
been increased by same $15 billion, or more than one-third.
su~
This added
has been an important factor in raising the rate on 3-month bills
from 2-1/4 percent early in 1961 to nearly 3-5/8 percent today.
There
have, to be sure, been intervals when neither the step by step increases
that have brought about this rise, nor the effect of changes in the cost
of obtaining forward cover, have been sufficient to check substantial outnows of short-term funds; but most of the time the over-all deterrent
effect has been clear and impressive.
Certainly such flows coul.d have
been disastrously greater had not these more or less steady increases in
short-term rates proved possible -- during years in which we have also
been in need of a continuing ample availability of funds at home for
spurring domestic economic expansion.
But there are risks in adding indefinitely to the supply of Treasury
bills.
Fbr these, too, represent liquidity, a form of near-money.
Account
had to be taken of their impact on the near-cash positions of businesses
and banks, as well as the implications for debt management in the need to
keep rolling over these bills in large amounts at frequent intervals.
provide at least a partial offset, the
of other short-term issues.
Trea~
To
steadily reduced the supply
Roughly $6-1/2 billion of coupon issues in
the under-one year area have now disappearedj about $7-1/2 billion has
been taken out of the l-to-5 year sector.
Tbe combined total reflects a
rise of only $1 billion, on balance, in the entire maturity segment from
- 9 o-to-5 years.
And the remainder, as already noted -- roughly $20 billion
of the total of about $21 billion of new marketable debt since January,
1961 -- has
all been placed in maturities beyond
5 years.
There has been another way in which debt management has been made a
part of balance of payments policy -- through the issuance of
short-te~
bonds to foreign monetary authorities, denominated in their own currencies.
Wi th more than $1 billion of these now outstanding,· and with transfers of
them between other countries already having occurred, the versatility of
this instrument is being demonstrated, and it may bave already found a
permanent place in the monetary arrangements of the future.
As a possible
means of absorbing foreign aonetary balances that might otherwise be
pressed upon us for conversion into gold, this new approach can provide
direct assistance to our external monetary poSition, while also carrying
as well as any conventional issue a corresponding amount of the debt which
must, in any event, be placed with some holder somewhere.
Perhaps the most effective single technique that has been used to
keep the debt well placed, as a base for continuing monetary stability in
the United States, has been that of advance refunding, first introduced in
1960 by our predecessors, Secretaries Anderson and Baird.
Debt extenSion,
through this route or any other, is an omnipresent consideration because:
1.
No Secretary of the Treasury can let so much debt pile up
in the short-term area that he must always do his financing,
literally, with his back to the wall. He needs some scope
for choosing the timing, amounts, and maturities of his
offerings in relation to the going market.
- 10 20
A vast array of market institutions 1 including a wide
variety of savings intermediaries 1 has developed around
a balanced distribution of debt instruments of short,
intermediate 1 and long maturities. Al though the proportions among these can be 'expected to change With changing
market conditions 1 and changing expectations as to these
conditions 1 there must at all times be same intermediate
and some long-term issues outstanding in order to "hold
a place" in the debt structure for the time when public
policy calls for additions, or retirements 1 in one sector
or another. That iS I without familiarity and continuity,
there will be Virtually no markets in the longer sectors
when the time comes for active influence to be exerted in
these areas.
3. A balanced debt structure
will usually assure a lower
aggregate cost of debt service. It is concentration of
the debt, or of current finanCing, in one maturity sector
that risks high interest costs to the Treasury of the
kind represented by the so-called "Magic Fives" -- which
we just retired last August -- or their sister, the 4-7/8's,
which we just retired last Monday.
4.
Moreover, a significant supply must be kept in all maturity
sectors in order to give the Federal Reserve a suitable
market through which to exert its own desired influence.
In its effort to help hold short rates at higher levels,
the Federal Reserve has over the past three years and more
been dOing some of its buying in the intermediate or longerterm area to avoid putting downward pressure on bill yields.
The additions to the market supply of these longer issues
have been useful, in helping to give the Federal Reserve an
active trading market to work in.
5.
The active trading markets made possible when there is a
substantial. supply in all maturity segments is an important
medi um for gauging the impact of changes in general. supply
and demand conditions -- in a form of widely tradable
instrument free of credit risk.
6.
The timing and decisiveness of Treasury action in making
its own offering can also act as a catalyst for the related
markets in corporate and municipal bonds. For example, the
successful offering of three-quarters of a billion dollars
- 11 -
of 2l-year, 4-1/4 percent bonds as part of the January
advance refunding at the beginning of this year seemed to
give many other elements in the market a signal they were
waiting for, restoring confidence to a nervous market, and
actually resulting in a marked reduction of market yields.
Similarly, the lO-year, 4-1/4 percent bond included in the
regular May refunding provided a tonic to market psychology
as investors took $1-1/2 billion of the offering.
There are, reinforcing these reasons for always giving weight to the possibility of debt extenSion, three additional considerations that have made
advance refUndings particularly attractive fram the Treasury's point of
view:
1.
The Treasury has complete initiative with respect to timing
and amounts. Instead of being bound to act on a maturity
date established many years earlier, the Treasury can choose
when to enter the market, in the light of prevailing market
conditions -- accomplishing more, disturbing less.
2.
Moreover, should the response be comparatively poor -either because new events intervened while the books were
open, or because the design of the offering was not adequately attractive -- the Treasury suffers no significant
consequences. It still vill have other opportunities to
handle the remaining holdings of securities eligible for the
advance exchange, and there vill be no impact at all upon
its cash position. Low response to a refunding of actually
matured issues, on the other hand, raises innuendoes of
"failure," and leads to a possible short-fall of cash as
the Treasury pays out heavy amounts for redemptions.
3. By combining many issues in a single operation, often taking
maturities scattered over a range of several years, the
Treasury can reduce the total number, or the scale, or both,
of its subsequent offerings. The effect can be to reduce
the weight of Treasury operations in the market, particularly
important in periods when the market itself is under strain -as might have been anticipated through this past autumn, for
example.
- 12 -
The role of advance refundings in the debt extension effort of
recent years has been spectacular.
Over the five years 1960-54 that
advance refundings have been in use, the Treasury has issued an annual
average of about $4 billion of bonds maturing in ten years or more, compared with an average of slightly more than $1 billion per year for the
eight preceding years -- the eight years that folloved the "Accord" of
1951. Or if the definition of long bonds is stretched to include 9-year
maturities -- which proved to be a particularly useful middle-issue in
advance refunding offerings -- the annual average for the past five years
becomes more than $T billion, while the average for the earlier years
remains unchanged at about $1 billion.
Another gauge of this effect is
to look at the presently outstanding Treasury debt due after five years.
Some
$32.9 billion, or 53 percent of the current total, was issued in
advance refundings.
It is not often realized, when concern is expressed
aver loose fiscal and monetary policies in Washington, that on balance
practically all of the increase in the Treasury's marketable debt since
January,
1961,
has been financed at long-term so that it is still, despite
the passage of the years since then, due in five years or more.
As a result, the long postwar decline in the average maturity of the
marketable debt to a low of four years and two months in September,
was not only ended but reversed.
1960,
The average maturity is now five years
and two months, up about twelve months from the September, 1960, low.
- 13 It is worth noting, however, that by the year-end the average maturity
will be practically unchanged fran the end of last year, despite the
issuance of $13.8 billion of Treasury bonds this year.
This is eloquent
evidence of the volume of new long-term financing that must be done in
order to offset the impact of the passage of time on the maturity structure.
None of this is intended to imply that debt extension should be restricted to advance re:f'undings only, any more than it has been in the
past, or indeed that debt extension must be confined to offerings of
long-term bonds.
On the first pOint, for example, we achieved a modest
amount of debt extension last May by selling $1.5 billion of 10-year,
4-1/4
percent bonds in the course of refunding a regular qQarterly maturity.
This operation increased the average maturity of the marketable debt by
nearly
one~onth.
With regard to the second point, I would note that
our continuing program to move from the old pattern of a one-year anchor
issue in our quarterly re:f'u.ndings to an l8-month pattern has already increased the average maturity by about three-quarters of a month over what
it would otherwise have been.
However, I have already continued this discussion much too long.
l(y only excuse is that opportunities of this kind are rare, and I could
not resist making the most of this one, particularly because I have suspected that I might be preaching to the converted.
I have not begun to touch on many of the other fascinating sides of
debt management __ the experiment 1n auctioning long-term bonds -- the
- 14 continuing role of the dealer market -- the tecbDiques for issuing Treasury
bills -- the impact of cash offerings as contrasted with exchanges -- to
list a few.
But I have most wanted to emphasize the inherent dualism in debt
management.
The housekeeping is essential; proper technical placement
must be assured.
tials.
But there are also inherent and important other poten-
We have been gaining some added experience over the past four or
five years in using these potentials to help further the broader objectives
of Government economic policy.
Where better than in the administration
of the Government's own debt should there be concern tor maintaining conditions of liquidity and credit availability that will help, as far as
Government influence can, to maintain monetary stability in the United
States?
--000--
~10
·V
Ina rtKWSE A.". !f"6nSf'AP~~,
ruecs&. M!f!!ber 24. 1964.
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l#h11arie1phia
Cl...land
H,))2,600
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$ 12,612,0150
755,821&,000
21,6a6,OOO
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2'),581,000
11,9)1,000
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25,128,000
14,628,000
26,8)2,cYJO
~u ~.oo
126, 219,'JOQ
6s,419,OOO
r'J'1'iLS
$2,6)8,675,000
t1,2OO.140,000
I
,•
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i
U,I$,~
1,571,654,000
',)81,000
26,15).000
I
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I
•
•
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U,91k,OOO
6,1&96,000
I
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period 18 lM'olftd.
to_
TREASURY DEPARTMENT
3 RGIA4.SE A.n. m~\'JSPAPERS,
~day, November 24, 1964.
November 23, 196u.
RESULT;) OF TREp.::3UHY' S
WE~KLY
BILL OF.l<"'ERHJG
l'he Treasury Department ann.ounced last. evening that the tenders for two series of
reasury bills, Ol:e series to be an additional issue of the bills dated August 27, 1964,
nd the other scrles to be dated November 27, 1964, which were offered on November 18,
ere opened at the Federal Heserve Banks on. November 23. Tenders were invitgd for
1,200,1)00,000, or thereabouts, of 90-day bi;I.ls and for $1,000,000,0..)0, or the)'eabouts,
f lSI-day bills. The details of the two series are as follows:
1.il,}E OF ACCEPTED
Oi'lPETiTIV't!: BIDS:
Hi~h
Low
Average
90-day Treasury bills
maturing February 25, 1965
Approx. Equiv.
Price
Annual Rate
99.068BT
3.728%
99.054 3. 784~~
99.061
3.758/b
181-day 'l'reasury bills
mat.uring Nay 27, 1965
Approx. Equiv.
Price
Annual ltate
98.040
3.898%
98.000
3.978:{
98.018
3.942%
-'-~~-
V
Y
Y
£/ Excepting 3 tenders totaling $1,100,000
J( percent 01' the amount of 90-day bills bid-for at the low price was accepted
85 percent of the amount of 181-day bills bid for at the low price was accepted
!illAL TENDERS A:ePLII~]) FOR AND ACCEPTED BY Y~DER.AL iiES?;llVE mS'l'dC'l'S:
~ Excepting 2 tenders totaling $350,000;/
District
Boston
New York
Philadelphia
Cleveland
Richm~md
Atlanta
Chicaf~o
St. Louis
i'!inneapolis
Kansas City
Dallas
San Francisco
TarALS
Applied For
25,332,000
$
2,023,974,000
27,686,1)00
23,581,000
11,937,000
25,107,000
266,292,000
33,676,000
20,851,000
26,832,000
25,128,000
128,279,000
$2,638,675,000
Accepted
$ 12,072,000
755,824,000
14,686,000
23,581,000
11,937,000
23,h07,000
205,827,000
28,076,000
17,851,000
26,832,000
14,628,000
65,J.~19,000
$1,200,140,000
sf
Applied For
11,865,000
$
1,578,654,000
9,381,000
26,853,000
5,105,000
10,924,000
167,769,000
11,914,000
6,496,000
27,263,000
9,424,000
72 2034,000
$1,937,682,000
Accepted
9,115,000
$
745,1+04,000
6,381,000
11,853,000
5,105,000
9,794,000
106,769,000
10,914,000
6,496,000
27,263,000
9,274,000
51, 659,!00Q
$1,000,027,000 ~/
/ Includes $219, 790,000 noncompeti tive tenders accepted at the average price of 99.061
~mcludes $68,351,000 noncompetitive tenders accepted at the average price of 98.018
! On a COUpon issue of the same length and for the same amount invested, the return on
these bills would provide yields of 3.85%, for the 90-day bills, and ~.08%, fa: the
lSI-day bills. Interest rates on bills are quoted in terms of bank d~scount m.th
the rfltUIn related to the face amount of the bills payable at maturity rather than
t~ amount invested and their length in actual number of dqys related to a.3 6o-day
year. In contrast, yields on certificates, notes, and bonds are compute~ ~n. terms
of interest on the amount invested and relate the number of days remain~ng 1ll an
interest payment period to the act~al number of days in the period, with semiarmual
compounding if more than one coupon period is involved •
.:I~llj
TREASURY DEPARTMENT
(
November 23, 1964
FOR RELEASE, 9:00 A.M.
MONDAY, NOVEMBER 23, 1964
STATEMENT OF THE TREASURY ON BRITISH BANK RATE
The United States respects and understands the decision
of the Bank of England to raise its Bank Rate to 7 percent
in order to overcome the recent heavy pressures on Sterling.
The series of measures that have now been taken by the
United Kingdom demonstrate the determination and ability
of the British Government successfully to maintain the
integrity of Sterling.
000
D-14l5
TREASURY DEPARTMENT
November 23, 1964
FOR RELEASE, 9:00 A.M.
MONDAY, NOVEMBER 23, 1964
STATEMENT OF THE TREASURY ON BRITISH BANK RATE
The United States respects and understands the decision
of the Bank of England to raise its Bank Rate to 7 percent
in order to overcome the recent heavy pressures on Sterlin):.
The series of measures that have now been taken by the
United Kingdom demonstrate the determination and abilitv
of the British Government successfully to maintain the
integrity of Sterling.
000
D-141S
TREASURY DEPARTMENT
November 23, 1964
FOR RELEASE AT 4:30 P.M.
MONDAY, NOVEMBER 23, 1964
DILLON STATEMENT ON FEDERAL RESERVE
DISCOUNT RATE
Secretary of the Treasury Douglas Dillon this afternoon
released the following statement:
The Federal Reserve has acted today to maintain the
strength of the dollar without impairing the steady and
healthy advance of the American economy.
Increasing the discount rate to 4 percent will make
it possible to maintain short-term money rates in an
appropriate alignment with those abroad. Recently there
have been a number of increases in foreign official rates
which culminated in today's increase in the Bank of
England rate to 7 percent. The ceiling on rates payable for
time deposits has also been raised to 4-1/2 percent to
permit active competition by American banks for funds that
might move internationally.
These moves, together with cooperative action in the
foreign exchange markets, will avert an outflow of
interest-sensitive liquid funds from the United States and
provide a base for further progress in strengthening our
balance of payments position. At the same time, the
supply of savings and the ready availability of credit at
reasonable rates within the United States, which will not
be diminished by these actions, give assurance that
financing facilities will remain ample to support the
continued expansion of our prospering economy.
000
D-14l6
TREASURY DEPARTMENT
November 23, 1964
FOR RELEASE AT 4:30 P.M.
MONDAY, NOVEMBb, 23,1964
DILLON STATEMENT ON FEDERAL RESERVE
DISCOUNT RATE
Secretary of the Treasury Douglas Dillon this afternoon
released the following statement:
The Federal Reserve has acted today to maintain the
strength of the dollar without impairing the steady and
healthy advance of the American economy.
Increasing the discount rate to 4 percent will make
it possihle to maintain short-term money rates in an
appropriate alignment with those abroad. Recently there
have been a number of increases in foreign official rates
which culminated in today's increase in the Bank of
En~land rate to 7 percent.
The ceiling on rates payable for
time deposits has also been raised to 4-1/2 percent to
pt:rmit active competitiO'l1 by American banks for funds that
might move internationally.
These moves, together with cooperative action in the
foreign exchange markets, will avert an outflow of
interest-sensitive liquid funds from the United States and
provide a base for further progress in strengthening our
balance of payments position. At the same time, the
supply of savings and the ready availability of credit at
reasonable rates within the United States, which will not
be diminished by these actions, give assurance that
financing faeilitles will remain ample to support the
continued expansion of our prospering economy.
000
D-l4l6
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
AT PRESENTATION OF THE TREASURY'S EXCEPTIONAL SERVICE AWARDS TO
SECRET SERVICE SPECIAL AGENTS
RONALD J. SZEGO AND KENNETH A. MORROW,
12 NOON, TUESDAY, NOVEMBER 24, 1964, IN ROOM 4121
MAIN TREASURY BUILDING, WASHINGTON, D. C.
It is always a privilege to take part in honoring those
whose public service has so transcended the normal course of duty
that it merits recognition as "exceptional."
Today the privilege is particularly gratifying, because in
this ins tance the cus tomary "rou tine" of those who are be ing
honored is, in itself, so different from what is conventionally
thought of as the rou tine of the Ci vi 1 Servan t .
As applied to these gentlemen, the word "exceptional" has no
parallel in the usual pattern of activity followed by the rest of
us.
In line of duty, U. S. Secret Service Special Agents
Morrow and Szego were called upon to locate and apprehend a suspect
wanted for check forgery. This was "routine" for them, though few
of us would consider such an assignment in that light. More
signif ican t is the fac t tha t the suspec t, who was wan ted by the
S~te of Ohio on criminal charges, had a record which predicted
a resistance to arrest not characteristic of usual forgery suspect~.
This prediction proved true.
First of all, Special Agents Morrow and Szego displayed
perseverance in locating the suspect's whereabouts. To apprehend
him and bring him to justice was accomplished by them at the
gravest personal risk -- so grave, in fact, that only by a miracle
of good fortune is Special Agent Szego here with us at all.
It is good to see him here, alongside his partner in this
"routine" mission which was performed so exceptionally well.
By their outstanding and courageous action these men have
earned the highest respect of their fellow agents in a brave
service. They have also earned the lasting gratitude of us all
for the credit they reflect upon the Treasury and the Federal
GOvernmen t .
000
BIOGRAPHIES:
KENNETH A. MORROW
Kenneth A. Morrow was born September 22, 1934, in Detroit,
Michigan and obtained his early education there. He was graduated
from Wayne State University in Detroit in February 1959, receiving
an A.B. degree.
Mr. Morrow served in the U. S. Coast Guard from Fehruary 1953
to February 1957.
Before his appointment as a Special Agent with the U. S. Secret
Service on October 5, 1959, he served as a public welfare investigator
for the city of Detroit.
Mr. Morrow has been assigned to Detroit, Cleveland, and at
present is in the Chicago office. He has been on numerous temporary
assignments with the White House Detail.
Mr. Morrow resides in Hammond, Indiana, with his wife, Judith,
and their three children, Lisa, age 5; Russell, age 2; and D~nna,
11 months.
RONALD J. SZEGO
Ronald J. Szego was born March 30, 1937.
was obtained in Lyndhurst, Ohio.
His early education
In June 1961 he was graduated from Western Reserve University
in Cleveland, Ohio, with a B.B.A. degree.
Mr. Szego served in the U. S. Marine Corps from February 1956
to February 1958.
On June 26, 1961, he was appointed as a Special Agent with the
U. S. Secret Service. Since that date he has been assigned to the
Cleveland Office and has been on a number of temporary assignments
away from Cleveland.
Mr. Szego resides in South Euclid, Ohio, with his wife, Linda;
and their daughter Gennifer, age 2; and son Michael, age 1.
CITATI ON
LXCl;PTIu,lJAL
~Li<VICL
A••:AK~
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Fell
I~
u€)I10tlJ.>btd.-tion oS ou.t6 t..1I1a..tn!] c.otLll.age and vo.(. u..ntaAJ
!U.4k 06 p~ona...t.. uan~;eJt Niule of 6-tWU~1 efl~a£jeJ .u Cle.vUrutd.
Ohio, em M(L( 19, '964, -til :t,e a,'pJte,l.eJu,..ion 06 oite Thoma.~ .... u.te,.!(
Cea.6oJL, an ~'tmed 6u.g..itive., :{'W ..va,~ ~Qu.grvt tn .tHe .j£CJlU ~e.Jtv..ic.e.
nOll ~Le Jotye.Jtj and ~leJotiaucn oj UumellOu..!l Utut.eJ St.atu
T1t~a4WtJ' Citec.k4 wid b'J UL-ii en:jo.-'tc.emeHt au.tiwJt...i....ti.u 0 .t.he. ~.ta.te
06 UIl...ic JOIi.. dAmed lLOouelL<j. A4 ire en.tvted ..(;U. Mom ",'neJte the.
6u.g.<...t.i..ve I.4,'M ,UJ..illg, .ipeci.u A:jVlt ~ze.9o ,. . a,~ ~.tJw.ci. bJ p.{.~.tol
D-Ute 06 .the 6ug..i.ti..ve S"LOtr ,t;le 6 ha.dOi.\JJ 06 .-tJUl Itoom. .j;Jec.i.a.t
A9ent. .) ze~o' ~ De.UOw' 06 6..iC.M, ~:Jee-i..ai AJetu ,\.etme.-t;L A. Moltlt.OW,
,'le..tuAI'le.J tile 5·i.lte, ~ai;.(...itl9 t.he a.6~..u.u~u.
e
CITATIJ!J
[XCEPTIC;-,AL SERVICE
~(\mETu
A.
A.,;A~V
~WRRJ"i
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FOJ[ h..
ou.tbtluz.d.i..n9 C.OClll. 4ge. and VOlLU1.taJuj wk 06 peJt60nai
dtVlgVl .vh...i..le. 06 6.i.c..iali.:f engage.d at Cievel..and, OIUo, OK Ma~ 19,
1964, ,u~ the appJ:..e.hcJU.i.oil o~ Oile. TkOttla!. JJetd..t.'l Ce~o-t. cUt a.t.~d
~u.:J..d..ive., ,":IlO LV.1,6 ,~ou:liL.t 0~1 tile SeCJz.et 5VLv.(..ce 60Jt the 5oJtgtt.!
and He':1o.ti...a..tiOIt £16 t'lur.-te,.JtLJu.h Uni....ted s.t~tu h.e.a..6UA..e.Jt·. Che..c.k.~
and bll lAJ.~ ennOJLCerllent aut1lOtU..tiU 0& .the.. State
OIuo ~oJt
aJlJit€..d ilobbVl~/. In e.i;~ectUt9 .tiLe.. aJt~t., Sr-'e.ual '~~lent HoJ{Jtow
on
c.nteJted a. -'Loom i.,)·(;th it..iA coile%u.e., SDec.ia.i Age.nt 3ze~}o, and
Ce.a.6OJt O;N..iled .~.u«! ~1Lom the hha.do.~ tlIld ;;Jounde.d Spe.c.i..&1.l
Agent SzeDo, he .IletuJ[ned -till! ~.u:..e, ,LLttbq the. a~~a'<"lo.n.t 1.N
tJL-'tee ;.>-c.4C.U, Ji..4a.lJlif19 :1-0'1, ,tnd ;:JOM~bi[/ 6rWt..Kg . the
Li!ie of, :t-i.4 eoltelt~lUC ali tiJell.. 116 h.{);'~e.e.~.
,Jhw
i" ") Q
-J
"
'OK
~\LEASE .t\. ft.
.....!CIq,
/
hr.WSPAPEU,
Me....,. 2S. 1164.
iESULTS
1l000000r
21a. IP6la
:J, d:;rUJiD11iJ OF 11 lULW.OII 01 OII-WJl BILLS
a,GOO,ooo,aa
1M treu1d"l rMpar\MAt, a:mo'Wltled. 1.&1\ eYeIa1DI tJ3at t.be . . . .n ter
01' t.~rMbollte, of )6~ TrMaJ7 billa \0 b . . .ted "~I' )0, l~k, ad \e . . . . .
lieftaber 30, If6S, whioh ..zoe ott.,... OA ......... 18, wn .,.... a" ,_ Ie'lm . . . .
21&.
The detaU. or \01. 1. . . an •• tOl.l.owel
BeAk.
Oil
Noyeaber
Total applled for Total a.oept~
$2,h96,lS2,OOO
1,000 ,262 ,000
ilaaie of ao_pted. c011!pet1tl.e bide.
liigb
-
AnNie
(28~ of the
9S.9411
- 9oS.8SS
- 9$.876
Low
uoUDt bid
tor
(1Ml1ldM .S2 ,0Ia) ,000 ......... .... ,n1'lft bull &ad . ...,~ la
tun at t.lw aftrac. pr1_ . . . Mlew)
(Izoept.l. Wo t.den \e'-llac ')00,000)
Q..
·
" . .
•
!qui ftl.eat. Nt. of cl1aeoUlit. a,.,l'O:&.
tI
•
"
A."""
tot.al.
'feRal
AepU." tfW
Donon
.... Iork
8
ll.o6IS·
~)
at t.he 1. . priM _
'''rel
d.HerYe
Di.t:r1crt.
4.000.1 per - -
~.oea."
)),9St&,OOO
•
21, TSil,OOO
1,88),Jao&l,OOO
1),522,000
6"',2)9,000
aiObaloDd
AUaata
80,809,000
),7S2,ooo
19,61),000
28,]09,000
2,1S2,OOO
lS,6I),OOO
St.. Low
207 ,]62,000
1S,12),OOO
9),0)7,000
7,.),000
9,12),000
S,12) ,000
),717,000
PhUadel.ph1a
Cl.....laDcI
Cbi....
9,an,OOO
JIl1AAMpctl1e
laMa.
i_lla.
ou..,
Saa FraDe1Ho
Y OIl a
To\&1
),SU,OOO
k,an.,GOO
)2,717,000
177.m.000
ua.02!.ooo
t2,496,lS2,OOO
11,000,161,000
CI01IpOC 1• •e of tobe .... leec\h aad tor tbe .... ....t. 1D..ned, tM " '__ •
tbe" bW. voud prorlde • ,Ji.cl.. ot la.26.. IIIMnat ra.... OIl tltlla an ...... 18
to.,.. of bank d1uouat wit.h ttle retun re1&W w tbe taoe .MIId. fit ,be ttUla ,.,.
able a' atUl'1t.;y ratbero tMa tot. _1111\ 1IIYeet.ecl aDd. t._ir ~ 1. an.al I t .
cIq8 Nlat.ecl to a )6O-da;y yur. III 00Ilt.raa't, 11e1.. OIl 0U1.1t1_t.n, aotee, ...
boDiU .... eaputed 111 t .... of 1atereat _ the MOuat 1JWeetecl, aDd relate U. . . .
of da18 ....1A111g 111 &l1 irawren ~t. period \0 the aat~ .'.... • , " ta u.
period, with ..m.a1lllDA1 OOIIPOUDdlnc it
t.ban
coupon peri04 i. 1Dwlw4.
110"
0_
TREASURY DEPARTMENT
?.)i ;t;LSASE A.
1'1.
1,3: dSPAPZiiS ,
ednesday, ~<ovember 25, 1964.
;lESULTS OF
l~ovember
rl.EF1JllDI!~G
24, 1964
uF oil BILLIOt! OF OdE-YEAR BILL3
Tne Treasury Department announced last evening that the tenders for $1,000,000,000,
or thereabouts, of 365-day Treasury bills to be dated !'lovember 30 1954 and to mature
liovember 30, 1965, which were offered on i~ovember 18, were opened' a t th~ Federal ::teserve
Banks on November 24.
The details of this issue are as follows:
Total applied for Total accepted
aange of
accepted competitive bids:
High
Low
Average
(28~
$2,496,352,000
1,000,262,000
-
)5.~44
(includes $52,043,000 entered on a
noncompetitive oasis and accePted in
f,)~l at tne avera,:;e price ;::hOlm below)
(3xcepting two tenders totalin;£ ·;30J, 0(0)
Equivalent rate of discount approx.
"
,,1\
- 95.055
II
II
- ?).876
of toe amount bid for at toe low price
Federal deserve
District
joston
l~ew York
Philadelphia
Cleveland
rtichmond
Atlanta
Cmcago
St. Louis
;iinneapolis
Kansas ~ty
Dallas
San Francis co
II
11"
HoS
Total
A.12Elied for
;,~
33,954,000
1,883,404,000
13,522,000
80,809,000
3,752,000
29,623,000
207,362,000
15,123,000
9,871,000
9,123,000
32,717,000
177 zon zOOO
If
"
4.ll()0~
4.088,<)
4.068.
per annum
II
II
II
II
~/
accepted)
Total
,Icce.eted
21,754 1 000
~
694,239,000
3,522,000
28,309,000
2,752,000
15,623,000
93,037,000
7,823,000
4,271,000
5,123,000
5,717,000
118 zon zOOO
$1,000,262,000
.$2,496,352,000
Total
Jj On a coupon issue of toe same length and for the same amount invested, the return on
these oills lvould provide a yield of 4.26~. Interest rates on bills are quoted in
terms of bank disco-mt 'With tne 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 comnuted in terms of interest on the amount invested, and relate the number
of d.ays remal~nnz; in an interest payment period to the actual number of clays ir. the
period, with semiannual compounding if more than one c01J-pon pericd is involved.
'J
'~I •
'..J'V
TREASURY DEPARTMENT
(
November 25, 1964
FOR IMMEDIATE RELEASE
RICHARD O. LOENGARD, JR., TO SERVE AS
SPECIAL ASSISTANT FOR INTERNATIONAL TAX AFFAIRS
Richard O. Loengard, Jr., has been named Special Assistant
for Intern~tional Tax Affairs to Assistant Secretary for Tax
Policy, 'Stanley S. Surrey. He will also serve as Associate Tax
Legislative Counsel for International Tax Affairs in the Office
of the Tax Legislative Counsel.
In these capacities, Mr. Loengard will specialize in the tax
treatment of foreign investment and income, and will perform duties
previously performed by David R. Tillinghast, who is resigning,
effective November 27, to resume practice with the law firm of
Hughes, Hubbard, Blair and Reed, New York City, in which he was a
partner before coming to the Treasury in 1962.
Mr. Loengard comes to the Treasury from the firm of Strasser,
Spiegelberg, Fried and Frank, of New York City, with which he has
been associated since his graduation from Harvard Law School in
1956. He completed his undergraduate work at Harvard College in
1953, and before that attended Phillips Exeter Academy.
In private practice, Mr. Loengard has specialized in the field
of taxation, with substantial experience in matters dealing with
the taxation of foreign income of United States citizens and
corporations, and of the United States source income of aliens.
He is a member of the American Bar Association and has been
active as a member of the Committee on Taxation of Foreign Income
of the Association's Section of Taxation.
000
TREASURY DEPARTMENT
November 25, 1964
FOR IMMEDIATE RELEASE
RICHARD O. LOENGARD, JR., TO SERVE AS
SPECIAL ASSISTANT FOR INTERNATIONAL TAY AFFAIRS
Richard O. Loengard, Jr., has been named Special AssisLant
for International Tax Affairs to Assistant Secretary for Tax
Policy, Stanley S. Surrey. He will also serve as A~sociate Tax
Legislative Counsel for International Tax Affairs in the Office
of the Tax Legis lati ve Counse 1.
In these capacities, Mr. Loengard will specialize in the tay
treatment of foreign investment and income, and will perform duties
previously performed by David R. Tillinghast, who is resigning,
effective November 27, to resume practice with the law firm of
Hughes, Hubbard, Blair and Reed, New York City, in which he was a
partner before coming to the Treasury in 1962.
Mr. Loengard comes to the Treasury from the firm of Strasser,
Spiegelberg, Fried and Frank, of New York City, with which he has
been associated since his graduation from Harvard Law School in
1956. He completed his undergraduate work at Harvard College in
1953, and before that attended Phillips Exeter Academy.
In private practice, Mr. Loengard has specialized in the field
of taxation, with substantial experience in matters dealing with
the taxation of foreign income of United States citizens and
corporations, and of the United States source income of aliens.
He is a member of the American Bar Association and has been
active as a member of the Committee on Taxation of Foreign Income
of the Association's Section of Taxation.
000
TREASURY DEPARTMENT
Nuvember 2'), 1904
FOR lMMED lATE RELEASE
TREASURY'S WEEKLY RiLL OFFERTNC
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 December J 1964
in the amount of
$2,205,493,000, as follows:
'
,
91-day bills (to maturity date) to be issued DL-'cl'l1lbc r J, 19b4,
in the amount of $1,200,000,000, or thereabouts, representing an
additional amount of bills dated September '3, 1964, and to
mature Marc h 4, 1965,
originally issued in the amount of
$900,287,000,
the additional and original bills to be freely
interchangeable.
182-day bills, for $ 1,000,000,000, or thereabouts, to be dated
December 3, 1964, and to mature June '3, 1965.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and at
maturity their face amount will be payable without interest. They
will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000
(maturi ty value).
Tenders will be received at Federal Reserve Banks and Branches
to the closing hour, one-thirty p.m.,Eastern St;:ll1J<lnl
time, Monday, November 30, 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.
up
Banking institutions generally may submit tenders for account of
customers provided the names of the customers are set forth in such
tenders. Others than banking institutions will not be permitted to
submit tenders except for their own account.
Tenders will be received
without deposit from incorporated banks and trust companies and from
responsible and recognized dealers in investment securities. Tenders
from others must be accompanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an 1ncorporated bank
Or trus t company.
D-1419
- 2 Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, followin~ 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 Jess for the additional bills dated
September 3, 1964,( 91days remaining until maturit¥ date on
M~lrch 4, 1965)
and noncompet.itive tenders for $100,000
or les8 for the 182-day bills without stated price from anyone
bidder will be accepted in full at the average price (in three
decimals) of accepted competitive bids for the respective issues.
Settlement for accepted tenders i~ accordance with the bids must be
made or completed at the Federal Heserve Banks on December 3, 1964,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing December 3, 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 l'Thich 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 o~inary 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 Pederal Reserve Bank or Branch.
000
TREASURY DEPARTMENT
November 25, 1964
FOR IMMEDIATE RELEASE
The Federal Reserve System and the United States Treasury
today issued the following statement:
"The United Kingdom and eleven other countries today made
arrangements providing $3 billion to back up Britain's determination
to defend the pound sterling.
"Today's funds are in addition to the $1 billion drawing the
United Kingdom will obtain from the International Monetary Fund at
the end of this month under an existing standby.
"Austria, Belgium, Canada, France, Germany, Italy, Japan,
the Netherlands, Sweden, Switzerland, and the United States,
together with the Bank for International Settlements, moved quickly
to mobilize a massive counter-attack on speculative selling of the
pound.
"The IMF drawing, which can have a maturity of up to three
years, will enable the British to payoff all outstanding short-term
credits from central banks including the Federal Reserve.
"The currency swap arrangement with the Federal Reserve
System has been raised by $250 million to $750 million and a
$250 million credit has been made available by the U. S. Export
Import Bank. (These amounts are included in the total package of
$ 3 bill ion. ) "
D-J..L.20
000
TREASURY DEPARTMENT
November 25, 1964
FOR lMMED lATE RELEASE
The Federal Reserve System and the United States Treasury
today issued the following statement:
"The United Kingdom and eleven other countries today made
arrangements providing $3 billion to back up Britain's determination
to defend the pound sterling.
"Today's funds are in addition to the $1 billion drawing the
United Kingdom will obtain from the Interna tional Monetary Fund at
the end of this month under an existing standby.
"Austria, Belgium, Canada, France, Germany, Italy, Japan,
the Netherlands, Sweden, Switzerland, and the United States,
together with the Bank for International Settlements, moved quickly
to mobilize a massive counter-attack on speculative selling of the
pound.
"The IMF drawing, which can have a maturity of up to three
years, will enable the British to payoff all outstanding shurt-term
credits from central banks including the Federal Reserve.
"The currency swap arrangement with the Federal Reserve
System has been raised by $250 million to $750 million and a
$250 million credit has been made available by the U. S. Export
Import Bank.
(These amounts are inc luded in the total package of
$3 bill ion . ) "
D-U20
000
,r..
.
.
... '
_
.
'
.,
,~
/
t.
Secretary of the Tre.sury DoIallaa Dl1loo today 1.... tIae
following statement:
The United States waa extre_ly plea"" to join with tbe
United Kin&doa and ten other countr1e. 1B • ccmcerted aetl_
L (V Lz.,J L"\ (Q {:( A
(tJ
Tel)
to defend the British pound sterling apt.nat apeculatl". . . . .aeun.
h
The speed wlth wbich support for the pound
aterllna • •
IRoblllzed ta yet another delROR8tration that . . pr..... t iatar-
4 /rif h-tlK C:-~(~c-{l:T
na t to04 1 mona tary
-
' .. :
--:=
~
S An E S-
--=.- • •
T!?Cj(uG
~
sound. flezlble. reaourcetul t ad
responsive to the need. of the fne world.
TREASURY DEPARTMENT
November 25, 1964
FOR RELEASE AT 4:00 P.M., E.S.T.
WEDNESDAY, NOVEMBER 25, 1964
Secretary of the Treasury Douglas Dillon today issued the
following statement:
"The United States was extremely pleased to join with the
United Kingdom and ten other countries in a concerted action
to defend the British pound sterling against unwarranted specu1ative pressures.
"The speed with which support for the pound sterling was
mobilized is yet another demonstration that present international
monetary arrangements are strong, sound, flexible, resourceful,
and responsive to the needs of the free world."
000
D-IL20A
TREASURY DEPARTMENT
November 27, 1964
FOR RELEASE 12:00 NOON
FRIDAY, NOVEMBER 27, 1964
DILLON ANNOUNCES STRENGTHENING OF SECRET SERVICE
Secretary of the Treasury Douglas Dillon announced today
that the Secret Service is accelerating its program to strengthen
Presidential protection.
This program, which was launched soon after the assassination
of President Kennedy has the approval of the President's Committee
on the Warren Report.
As a first step, the Service will be expanded during the
next few months by some 75 new agents, clerks and technical
personnel, at a cost of approximately $650,000.
The full modernization program, which will include necessary
modern protective equipment, will take up to 20 months. The
basic emphasis will be on more effective advance and preventive
work by the Service in connection with Presidential travel, as
well as the use of more sophisticated equipment.
000
D-1421
TREASURY DEPARTMENT
Washington
FOR RELEASE P.M. NEWSPAPERS
MONDAY, NOVEMBER 30, 1964
REMARKS BY THE HONORABLE DOUGLAS DILLON
SECRETARY OF THE TREASURY
BEFORE THE FIRST LATIN AMERICAN MEETING
OF DEVELOPMENT FINANCING INSTITUTIONS
AT THE MAYFLOWER HOTEL, WASHINGTON, D. C.
MONDAY, NOVEMBER 30,1964, 10:30 A.M., EDT
I am extremely pleased to take part in this inaugural session
of the first Latin American meeting of development financing
institutions.
The organizations represented here are in the very forefront
of the Alliance for Progress. Few others come into closer or more
constant contact with the intense and insistent need for more rapid
development that lies at the heart of of our Alliance. And few other
organizations can do more to help meet that need, since no single
factor is more essential to successful economic development than
investment. For that reason, the meetings which you are now
initiating will not only offer an invaluable opportunity for the
exchange of ideas and experience among specialists in your field,
but will also serve as a highly useful and instructive public
forum.
It is difficult, in fact, to overstate the importance of your
efforts to the success of our Alliance for Progress -- for much
that we aspire to achieve will depend upon those efforts.
Because my country has long recognized that fact, nowhere has
its support for development financing institutions been keener,
more widespread, or more diversified than in Latin America.
Even before the formal adoption of the Alliance for Progress,
United States participation in the Inter-American Development Bank
demonstrated that support. In addition to the intensive work of
the IDB itself, the Agency for International Development and its
predecessor agencies have made 49 loans, totalling $332.4 million,
D-1422
- 2 -
to assist development financing institutions throughout Latin
America.
These loans have been used to encourage, develop and sustain
an extraordinarily broad range of investment. AID loans have been
used to assist all kinds of development banks -- both public and
private -- as well as other more specialized institutions in the
fields of agriculture, fishing, mining, industry and housing. In
some countries, loans for development re-lending purposes have
been made to central banks, in others to commercial banks -- some
of them regional in nature -- and, in still others, to national
development corporations, which typically combine development
financing functions with public administration functions. In
Colombia, for instance, part of the peso counterpart of AID program
loans has been used to finance a Private Investment Fund which,
under the over-all supervision of the Bank of the Republic, is
administered through the commercial banking system.
The immense diversity so evident in even the few institutional
arrangements that I have cited underscores both how enormous and
how diverse is the Latin American need for development financing.
Even more significantly, it points up the growing need for the
development of effective and efficient capital markets throughout
Latin America.
Two of the main reasons for the emergency of development
financing institutions such as those represented here today are the
need for long-term investment capital and the need to foster the
growth of local capital markets. These needs, however, since they
occur in different environments, will tend to be different in
detail -- and so, invariably, will the institutions that arise to
serve them. As a result, specialization is as necessary, healthy,
and desirable in development financing as it is in other fields.
But it can be carried too far. Overly-specialized institutions
will probably not be able to contribute effectively to the
development of capital markets. In certain cases, a development
financing institution may even become a substitute for some of the
ordinary functions of a capital market and thus actually retard
the development of that market.
Far too little attention has, in fact, been given to the
development of capital markets in Latin America -- undoubtedly
because of the complexity and difficulty of this endeavor.
- 3 -
There are, however, a number of things that development financing
institutions can -- and should -- do to encourage the growth
of indigenous capital markets. They can, and should, make
their investments with a considered -- even primary -- view
toward their future value and marketability. Most development
financing institutions can directly nourish the growth of a 10c8l
capital market by sales from portfolio, by participations, or by
sales of their own shares to the public. Many can underwrite
new issues of securities, or attract direct investor participation
in their own projects.
In all of these ways, and in many others, development
financing institutions can foster useful connections between
savers and investors. If for some legal or institutional reason
a development financing institution is unable to help in securing
these connections, then certainly steps should be taken to re~ecty
the situation. For the establishment of such connections is one
of the most important social services development financing
institutions can provide as well as one of their own best assurances
of a viable and worthwhile future.
Thus, encouraging the growth of local capi tal markf'ts is .ml'
of the most fruitful ways in which the institutions rppresentcJ
here can make even greater contributions toward accomplishLng
the enormous economic and social task that we have set for ourselves
under the Alliance for Progress.
The aim of that Alliance, as we do well to often remind
ourselves, is to relieve as rapidly as possible the lot of millions
of people in this hemisphere who, while they live within sight or
hearing or even touch of a world of great abundance, remain in
bondage to the bleak heritage of the past. None of us has ever
been deceived about the magnitude -- or the importance -- of the
task before us. We have always known that the mistakes of
centuries could not be redeemed in a few years. We have known,
as well, that we must be prepared to meet with renewed
determination and added patience the setbacks that inevitably occur as
the massive, mounting impatience of long unsatisfied needs rebels
at what often seems -- and will often continue to seem
ihterminably slow and infinitesimally small progress.
We have all heard -- and we will undoubtedly continue to
hear -- those skeptical voices that tell us the Alliance is
faltering or failing because its goals are not yet achieved. Rut
we must avoid the corrosive taint of such skepticism just as we
must, with equal vigor, avoid being so hypnotized by high hopes
t~t we forget the need for real, tangible progress.
.. 4 But in these days, above all, we can take heart. For despite
frustrations and failures, there is hard, unshakeable evidence on
every side that the Alliance is indeed moving forward -- that we
are joining a firm adherence to principle with a solid grasp of
realities -- that we are bringing realistic solutions to the
problems of the day.
Let me review very briefly some of our recent progress. In
my own country, as you know, President Johnson early this year
placed the Latin American bureau in the State Department and the
Latin American division of AID under the single command of
Assistant Secretary of State Thomas C. Mann -- who combines an
extraordinary personal competence and a prudent respect for
political and economic realities with a profound and sympathetic
understanding of the human needs which the Alliance is designed to
serve. This yoking of our AID activities and our political and
economic policies concerning Latin America under Assistant
Secretary Mann, has already yielded important, and concrete,
results. In the first six months of 1964 we made more Alliance for
Progress loans than in all of 1963 -- committing all of the funds
made available by the Congress. More significant still, the new
and improved coordination in our dealings with Latin America has
meant an improved quality in projects approved -- and thus a greater
contribution to Latin American economic and social development than
ever be fore.
In a move of major importance to the success of the Alliance,
the Inter-American Committee for the Alliance for Progress was
formed -- thus strengthening the multilateral nature of the
Alliance and creating, for the first time, a permanent forum
in which the American Republics can together examine and discuss
in detail the whole spectrum of their economic problems, needs
and accomplishments. By including in its studies and discussions,
not only governments, but the Inter-American Development Bank,
the World Bank, the International Monetary Fund, and outside
experts, the Committee exposes the many' and difficult problems
throughout our hemisphere to the careful and searching analyses
of the best talent the hemisphere has to offer.
CIAP has
already earned the confidence of all our governments. The
studies it has underway, and its excellent recent report on
problems and prospects in Latin America, have given us solid
grounds for assurance that CIAP will be a major force for progress
under the Alliance.
s When we turn to survey the La. In American countries themselves,
we can already see the kind of .:',)11." rete results we expect the
Alliance to produce increasingly in the future. The high grm.;th
rates in Venezuela, Mexico, Central America and in certain 'other
countries have been accompanied by a new confidence in the stal;ilitv
and viability of those countries' economies -- a confidence lan\~iblv'
expressed in a rising flow of foreign investments. lTni ted StaU's
investors, for example~ are now investing in Latin Arnt"rica Ht
about twice the rate they did in 1963.
We also see, throughout the hemisphere, a heartening growth
in self-help measures -- measures which, more perhaps than any
other single factor, signal how genuine and lasting it, uur pr,)grl'ss
under the Alliance. Since the Alliance began, all countries have
improved their tax administration capabilities and nine countries
have adopted major tax reform legislation. Twelve c()l1ntrics have
introduced agrarian reform legislation. As a whole, l.atin American
education budgets have been increased by close to 13 pCl:cel1l a
year -- with five million more children attending school.
Fifteen countries have established self-help housing programs.
Nine countries have passed legislation for savings and loans
associations, and eight countries have established new private or
public development banks.
Programs under the Alliance have helped bu i Id llwn' than
23,000 classrooms, more than 220,000 houses, some 3,000 i'1i1ps
of roads, and more than 1,000 water supply and ')('\n)'(' :~.';t.' IS
serving 15 million people. They have helped creRte q0~e gOO credit
unions, have made more than 200,000 agricultural credit loans, and,
in this year alone, have helped feed more than 23 million people.
And , while there have been -- and we must, n:alisticdlly,
continue to expect -- some setbacks, any overall evaluation of the
past three years can only lead to the conclusion thill the cause of
political freedom and social progress throughout the Hemisphere
has been markedly well-served.
In these and other respec ts, our partnershi l' \[11,11·1' thL'
Alliance for Progress is producing the kinds of results that can
be seen and felt -- the kinds of results that help better the lives
of millions of our people, that nourish in thl'm 1I('{.I hnf'I' ;11~d new
confidence that the Alliance is indeed capablfo' ol liLbll fh.i'1.urmance
as well as high promise.
6 -
.,
This y2ar, therefo:i:e -- U i "I.lrth undC='r the Alliance
we should dedicate ourselves tc t"el',oubled effort toward our goal
of economic, social and politic~~ ~rogress iQr all the people of
Latin America, confident in the (,:nowledge thaL, while problems
will continue to beset us, we have ~~de solid gains upon which to
build -- confident in the knowledge that, in words spoken to the
ambassadors of the Latin American nations by President Johnson
earlier this year:
"We have reached a turning point.
"The foundations have been laid. The time calls for more
actions and not just words. In the next year, there will be
twice as much action, twice as much accomplished as in any previous
year in this program. I can say that with confidence, and I can
say that our Alliance for Progress will succeed. The success of
our effort, the efforts of your countries and my country will
indicate to those who come after us the vision of those who set us
on this pa th."
000
u.s.
Year
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
196;3
Source:
Receipts
Trans-ocean Fare
Travel by
Receipts from
Foreigners
in U,S,
Foreigners
50
62
58
61
64
63
84
89
90
106
110_
113,
U8
473
550
574
59'
654
705
785
825
902
8'75
885
870
934
TRAVEL ACCOUNX 1951- -1963
(In millions of dollars)
Total
Travel
Receipts
523
612
632
656
718
768
869
914
992
981
995
98)
1,052
E!:Qenditures
Travel by
Trans-ocean Fare
Payments to
Americans
Abroad
Foreign Carriers
-132
-172
-179
-183
-201
-238
-261
-320
-380
-505
-507
-575.
-62'
-757
-840
':"929
-1,009
-1,153
-1 .. 275
-1,372
-1 .. 460
-1,610
-1,74'
-1 .. 747
-1,892
-2,070
Total
Travel
Payments
-889
-1 .. 012
-1 .. 108
-1,192
-1,354
-1,513
-1 .. 633
-1,780
-1,990
-2,250
-2,254
-2,467
-2,695
NIT
TRAVEL
BALANCE
-366
-400
-476
-536
-636
-74'
-764
-866
-998
-1,269
-1 .. 259
-1,484
-1.1 6 43
Survey of Current Business, June 1964
v
J::.
~
_A
- 6 -
To be successful, we must be equally as competitive and
imaginative in offering tourist services to foreigners as we
are in selling goods to foreigners.
In this effort, main-
tenance of price stability in the United States is important
since the foreign tourist, by and large, appears much more
cost sensitive than the average American tourist traveling
abroad.
And we must develop a greater national interest in
foreign travelers visiting here.
Despite the vast variety
of attractions this country offers the foreign tourist,
his warmth of appreciation is likely to be only as great as
our warmth of welcome.
Because of the importance of the tourist factor in our
balance of payments, we particularly welcome the hearings
of this committee, which can help further to make 1965 a
successful step in the "See the United States" program.
Thank you, Mr. Chairman.
- 5 -
343
Again, some of our tourist dollar expenditures may help
some countries whose reserves are so low that their imports
from the United States would otherwise be lower than they now
are -- but the bulk of such spending flows to countries whose
reserve positions are very strong.
On balance, therefore, I suspect that these effects, as
good
as they
may be, do not alter significantly the basic
magnitudes which show a vast opportunity for improvement in
our balance of payments by cutting our deficit on tourist account
American tourism in foreign countries simply is not a
relatively neutral factor in our balance of payments, even
when all side effects are taken into consideration.
As I remarked earlier, we think the major way to correct
the situation is to build up our receipts from abroad, but we
have to make far greater and quicker progress in this effort
in order to bring about in this sector of our balance of
payments, results which will intensify the gains we have made
in other parts of our balance of payments, including substantial reductions in government expenditures abroad,
increased volumes of exports, and sharp cuts in outflows of
United States capital.
34'1
- 4 While we do not yet have comparable data for 1964, it
appears that the increase in our travel payments abroad
will continue to exceed the increase in our receipts from
foreign travel in the United States.
In short, our travel
deficit will reach another all time high in 1964 -- in
excess of $1.7 billion.
This does not mean that progress has not been made in
attracting tourists here -- but it does mean that we are a
very long way from correcting a situation which contributes
entirely too much to the United States balance of payments
deficit.
The figures I have cited are of course subject to some
adjustment for various factors which may tend to offset
some of the adverse balance of payments impact.
For example,
United States tourist expenditures abroad may well have
various beneficial "feed-back" effects for our balance of
payments.
Our travelers probably do stimulate abroad a taste
for American products so that the dollars which they spend
come back to us for the purchase of United States goods.
the same token, our travelers abroad may well develop a
sustained preference for some foreign goods.
By
345
- 3 -
We of course respect the freedom of choice of the
American consumer to spend his dollars for those purposes that
in his judgment promise him the greatest benefits.
If we are
to achieve a gain in our balance of payments on tourist
account, therefore, we must reinforce our efforts to make
travel in the United States increasingly attractive when
compared to travel abroad, both in order to keep more of our
own citizens at home and to attract more foreign visitors.
With the endowment we have of a country of unsurpassed
beauty and variety, there is no reason why we should not succeed.
To emphasize the need for reinforced effort, I should
like to quote a few figures.
Our receipts from foreign
tourists, including their fares to American carriers, have
hovered near the $1 billion level for the past five years.
In 1959, they were $992 million and in 1963 a bare $60 million
more.
Our payments for travel, including fares to foreign
carriers, on the other hand, have increased steadily from
almost $2 billion in 1959 to almost $2.7 billion in 1963 -a $700 million increase in four years.
- 2 -
imbalance has been reduced from the 1960 level of $3.9
billion, the imbalance this year will still run in the order
of $2 billion to $2.5 billion.
We simply cannot afford to
relax our program to bring about further o·ver-all improvement
This is why we welcome the hearings now being conducted
by this
Co~ittee
and
hopeful that it will again focus
attention upon the over-all problem we face and upon the
Congressional resolution and the PresidentJs proclamation
of August 15, 1964.
Reinforced efforts are needed to lessen
the drain in our travel accounts on our balance of payments.
The rise in expenditures by Americans for foreign
travel is, like other consumer expenditures, related to the
increase in our national income.
But Americans have been
spending an increasing share of their income on foreign
travel.
Continuation of this relationship means an increas-
ingly heavier impact on our balance of payments; and efforts
to strengthen other segments of our payments position can be
offset to a very considerable extent by increasing travel
expenditures abroad.
0
,? 47
FOR RELEASE:
UPON DELIVERY
STATEMENT BY MERLYN No TRUED
,
ACTING ASSISTANT SECRETARY OF THE TREAS~
BEFORE THE SUBCOMMITTEE ON TOURISM OF THE
HOUSE BANKING AND CURRENCY COMMITTEE
MONDAY, NOVEMBER 30, 1964, 10:00 A.M., EST
I appreciate the opportunity to appear before this
Committee as it undertakes consideration of a subject with
important implications for our balance of payments situation.
A year ago the Treasury Department testified before Subcommittee 4 of the House Judiciary Committee in support of H.J.
Resolution 658, authorizing and requesting the President to
proclaim 1964 as "See America Year".
This Resolution was in
support of efforts to make travel at home a more appealing
alternative to travel abroad, and thereby reduce the large
drain on our balance of payments resulting from the constant
increase in American tourist expenditures abroad
Subsequent
to Congressional approval of this resolution, the President
designated a "See the United S:J;ates" program which will
carry through 1965.
We have made significant progress in reducing the deficit'
in our regular accounts in the balance of payments -- that
is all our payments to foreigners less our receipts other
than special intergovernmental transactions.
Although this
FOR RELEASE:
UPON DELIVERY
STATEMENT BY MERLYN No TRUED
ACTING ASSISTANT SECRETARY OF THE TREASURY
BEFORE THE SUBCOMMITTEE ON TOURISM OF THE
HOUSE BANKING AND CURRENCY COMMITTEE
MONDAY, NOVEMBER 30, 1964, 10:00 A.M., EST
I appreciate the opportunity to appear before this
Committee as it undertakes consideration of a subject with
important implications for our balance of payments situation.
A year ago the Treasury Department testified before Subcommittee 4 of the House Judiciary Committee in support of H.J.
Resolution 658, authorizing and requesting the President to
proclaim 1964 as "See America Year".
This Resolution was in
support of efforts to make travel at home a more appealing
alternative to travel abroad, and thereby reduce the large
drain on our balance of payments resulting from the constant
increase in American tourist expenditures abroad.
Subsequent
to Congressional approval of this resolution, the President
designated a "See the United States" program which will
carry through 1965.
We have made significant progress in reducing the deficit
in our regular accounts in the balance of payments -- that
is all our payments to foreigners less our receipts other
than special intergovernmental transactions.
Although this
- 2 -
imbalance has been reduced from the 1960 level of $3.9
billion, the imbalance this year will still run in the order
of $2 billion to $2.5 billion.
We simply cannot afford to
relax our program to bring about further over-all improvement.
This is why we welcome the hearings now being conducted
by this Committee and . . hopeful that it will again focus
attention upon the over-all problem we face and upon the
Congressional resolution and the Presidentls proclamation
of August 15, 1964.
Reinforced efforts are needed to lessen
the drain in our travel accounts on our balance of payments.
The rise in expenditures by Americans for foreign
travel is, like other consumer expenditures, related to the
increase in our national income.
But Americans have been
spending an increasing share of their income on foreign
travel.
Continuation of this relationship means an increas-
ingly heavier impact on our balance of payments; and efforts
to strengthen other segments of our payments position can be
offset to a very considerable extent by increasing travel
expenditures abroad.
- 3 -
We of course respect the freedom of choice of the
American consumer to spend his dollars for those purposes that
in his judgment promise him the greatest benefits.
If we are
to achieve a gain in our balance of payments on tourist
account, therefore, we must reinforce our efforts to make
travel in the United States increasingly attractive when
compared to travel abroad, both in order to keep more of our
own citizens at home and to attract more foreign visitors.
With the endowment we have of a country of unsurpassed
beauty and variety, there is no reason why we should not succeed.
To emphasize the need for reinforced effort, I should
like to quote a few figures.
Our receipts from foreign
tourists, including their fares to American carriers, have
hovered near the $1 billion level for the past five years.
In 1959, they were $992 million and in 1963 a bare $60 million
more.
•
Our payments for travel, including fares to foreign
carriers, on the other hand, have increased steadily from
almost $2 billion in 1959 to almost $2.7 billion in 1963 -a $700 million increase in four years.
- 4 -
While we do not yet have comparable data for 1964, it
appears that the increase in our travel payments abroad
will continue to exceed the increase in our receipts from
foreign travel in the United States.
In short, our travel
deficit will reach another all time high in 1964 -- in
excess of $1.7 billion.
This does not mean that progress has not been made in
attracting tourists here -- but it does mean that we are a
very long way from correcting a situation which contributes
entirely too much to the United States balance of payments
deficit.
The figures I have cited are of course subject to some
adjustment for various factors which may tend to offset
some of the adverse balance of payments impact.
For example,
United States tourist expenditures abroad may well have
various beneficial "feed-back" effects for our balance of
payments.
Our
~ravelers
probably db stimulate abroad a taste
for American products so that the dollars which they spend
come back to us for the purchase of United States goods.
the same token, our travelers abroad may well develop a
sustained preference for some foreign goods.
By
-:;.
-."
',-,
\.. i
\ .•
- 5 -
Again, some of our tourist dollar expenditures may help
some countries whose reserves are so low that their imports
from the United States would otherwise be lower than they now
are -- but the bulk of such spending flows to countries whose
reserve positions are very
stro~.
On balance, therefore, I suspect that these effects, as
good
as they
may be, do not alter significantly the basic
magnitudes which show a vast opportunity for improvement in
our balance of payments by cutting our deficit on tourist account.
American tourism in foreign countries simply is not a
relatively neutral factor in our balance of payments, even
when all side effects are taken into consideration.
As I remarked earlier, we think the major way to correct
the situation is to build up our receipts from abroad, but we
have to make far greater and quicker progress in this effort
in order to bring about in this sector of our balance of
payments, results which will intensify the gains we have made
in other parts of our balance of payments, including substantial reductions in government expenditures abroad,
increased volumes of exports, and sharp cuts in outflows of
United States capital.
- 6 -
To be successful, we must be equally as competitive and
imaginative in offering tourist services to foreigners as we
are in selling goods to foreigners.
In this effort, main-
tenance of price stability in the United States is important
since the foreign tourist, b1 and large, appears much more
cost sensitive than the average American tourist traveling
abroad.
And we must develop a greater national interest in
foreign travelers visiting here.
Despite the vast variety
of attractions this country offers the foreign tourist,
his warmth of appreciation is likely to be only as great as
our warmth of welcome.
Because of the importance of the tourist factor in our
balance of payments, we particularly welcome the hearings
of this committee, which can help further to make 1965 a
successful step in the "See the United States" program.
Thank you, Mr. Chairman.
u.s.
Tear
1~1
1~2
1~)
1954
195'
1956
1957
1958
1959
1960
1961
1962
1963
Source:
Receints
Trans-ocean Fare
Travel by
Receipts from
Foreigners
Foreigners
in U.S.
'0
62
,8
61
47)
"0
'74
64
6'4
70s
78,
82'
902
63
84
89
90
106
no
113
US
'9'
lr75
885
870
934
TRAVEL ACCOUNT 1951 - 1963
(In millions of dollars)
Total
Travel
Receints
'2)
612
632
6'6
718
768
869
914
992
981
99'
9SJ
1,052
Survey of Current Business, June 1964 .
E!:Qenditures
Travel by
Trans-ocean Fare
Payments to
Americans
Foreign Carriers
Abroad
-1)2
-172
-179
-18)
-201
-238
-261
-320
-)80
-'OS
-,en
-57',
-62'
Total
Travel
Payments
-7'7
-840
-889
-1,012
':'929
-1,108
-1,009
-1,1-')
-1,27'
-1,)72
-1,460
-1,610
-1,74'
-1,747
-1,892
-1,192
-1,3'4
-1,'13
-1,633
-1,780
-1,990
-2,2'0
-2,2'4
-2,467
-2,69'
-2,enO
NET
TRAVEL
BALANCE
-366
-400
-476
-'36
-636
-74'
-764
-866
-998
-1,269
-1,2'9
-1,484
-1.1 6 43
Treas.
HJ
10
• A13P4
v.145
Treas.
HJ
10
.A13P4
u.s.
Treasury Dept.
Press Releases
u.s.
Treasury Dept.
AUTHOR
Press Releases
TITLE
.
v 145
DATE
LOANED
--"-
BORROWER'S NAME
PHONE
NUMBER
11111111111111111111
1
0031517
@FedFRASER