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FOR IMMEDIATE RELEA.SE
M. H. McIntyre
Assistant Secretary to the President.
January 1, 1934,
The following correspondence between Mr. Walter J. Cummings, Chairman of
the Federal Deposit Insurance Corporation and the President was made public
late todays
•
_
'
Dear Mr. President:
January 1, 1934.
Pursuant to your request, I have the honor to submit to you a brief re
port of the work of the Federal Deposit Insurance Corporation,
We have insured 13,423 banks.
The insurance covers deposit® up to
$2,500 until July 1, 1934, when the permanent provisions of the Act become
operative.
A careful survey shows that 97 per cent of the total number of deposi
tors are insured in full.
We found 141 banks ineligible for insurance.
A number of them may be
insured by making certain corrections*
In other words, approximately one
per cent of the applying banks could not qualify.
This remarkable record
was due to the assistance given by the Reconstruction Finance Corporation by
the purchase from banks of preferred stock and capital notes.
I believe that the insuring of bank deposits will not only be of incal
culable value in restoring public confidence in the Nation*s financial, insti
tutions now strengthened, but that it will be of tremendous assistance in
hastening the return of prosperity.
It will banish the fear of the deposi
tor as to the safety of his money and from the banker* s point of view, the
elimination of the possibility of sudden and he^vy withdrawals will make pos
sible the expansion of credit for legitimate purposes.
The Federal Government has subscribed $150,000,000 to the capital of the
Federal Deposit Insurance Corporation, the Federal Reserve Banks have subscribed
$140,000,000 and in assessments the corporation has received over $37,000,000,
making a total of $327,000,000 available funds for the immediate use of the cor
poration*
I should like to express my real appreciation of the untiring efforts and
close cooperation shown by the other two directors of the corporation: Mr, J*
F. T. 0* Connor, Comptroller of the Currency, and Mr. E. G. Bennett*
The immediate task you entrusted upon your directors has been accomplished.
We uow direct our efforts to the advance of a great work— -protect deposits and
permit banks to function as useful instruments in the Recovery Program*
Thanking you for the opportunity to serve in this way, I am
Very sincerely yours,
The President,
The White House*
WALTER J. CUMMINGS,
Chairman.
The White House,
Washington, D.C.,
January 1, 1934.
My dear Mr* Cummings;
I congratulate you and Mr. Bennett and Mr. 0 !Connor because you
have in these few months accomplished with complete success a gigantic
tq.sk which the pessimists said could not possibly be done before January 1.
That 97 per cent of the bank depositors of the nation are insured
will give renewed faith.
I am also happy to know of the fine cooperation given to you by the
Reconstruction Finance Corporation.
Very sincerely yours,
FRANKLIN D* ROOSEVELT.
Mr. Walter J. Cunnings,
Chairman,
Federal Deposit Insurance Corporation.
For immediate release,
Tuesday, January 2, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Wednesday, January 3, 1934.
HECONSTHUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Heconstruetion Finance Corporation.
JESSE H. JONES,
Chairman, Heconstruction
Finance Corporation.
For immediate release,
Thursday, January 4, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
TREASURY DEPARTMENT
EOR RELEASE, MORNING PARERS,
Tharsday, January 4, 1934.
STATEMENT BY SECRETARY MQRGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $100,000,000, or thereabouts.
They will be 91—day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received at the Federal reserve banks,
or the branches thereof, up to two o*clock p. m . , Eastern Standard time,
on Monday, January 8, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated January 10, 1934, and will
mature on April 11, 1934, and on the maturity date the face amount
will be payable without interest.
They will be issued in bearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers
in investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company*
Immediately after the closing hour for receipt of tenders on
January 8, 1934, all tenders received at the Federal reserve banks or
branches thereof up to the closing hour will be opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and
to allot less than the amount applied for, and his action in any such
respect shall be final*
Those submitting tenders will be advised of the
acceptance or rejection thereof*
Payment at the price offered for Treasury
bills allotted mast be made at the Federal reserve banks in cash or other
immediately available funds on January 10, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt', from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions*
Treasury Department Circular No. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal reserve bank or branch thereof*
Por immediate release,
Friday, January 5, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Saturday, January 6, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
TREASURY DEPARTMENT
INFORMATION FOR THE PRESS
IMMEDIATE RELEASE
January 6, 1934.
The Secretary of the Treasury today made public the following
correspondence:
Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
January 5, 1934.
Dear Henry:
When you first asked me to come down to Washington to help out in the
Treasury, I told you that I could do so only on a temporary basis; that
one of my then senior partners, Mr. Henry Seligman, was not in good health
and if anything were to happen so that he could not continue to take an
active part in the affairs of the firm, I should have to leave on relatively
short notice. As you know, when Mr. Seligman died two weeks ago I told
you that I must finish up my work here as soon as possible and go back to
New York.
I want to inconvenience you about this as little as necessary,
and I therefore resign to take effect some time in January at your con'venience.
I am sure you will do your best to release me as soon as you
can.
Needless to say, I regret very much having to pull out, but I know
that you agree with me that my obligations being what they are, I have
no alternative.
In view of the organization that you have now built up,
I feel sure that my going will not be of any real inconvenience to you,
I have had a grand time working with you and it has been a privilege
which I shall not forget.
With best regards, I am,
Faithfully yours,
(Signed)
EARLE BAILIE*
January 6,
1934.
Dear Earle:
In reply to your letter of January 5th I can only repeat what I have
already told you, how much I regret that you find it necessary to return
to New York.
During your short stay at the Treasury you have rendered
real service to the President and to me.
I appreciate greatly the personal sacrifice that Mrs. Bailie and
you made in coming down here.
My best wishes go with you.
Very sincerely yours,
(Signed)
Mr. Earle Bailie,
The Treasury,
Washington, D. C.
HENRY MORG-ENTHA.U, Jr.
For immediate release,
Monday, January 8, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold ■under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Tuesday, January 9, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Wednesday, January 10, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the ra.te of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Re cons true ti on
Finance Corporation.
For immediate release,
Thursday, January 11, 1934.
RECONSTRUCTIOH FttTAITCS CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
TREASURY DEPARTMENT
INFORMATION POR THE PRESS,
IMMEDIATE RELEASE
Secretary Morgenthau today (January 11, 1934) made public the following
notice of amendment of Customs Regulations:
TO COLLECTORS OP CUSTOMS AND OTHERS CONCERNED:
Article 415 of the Customs Regulations of 1931 is hereby amended
to read as follows;
Art. 415. Tobacco -products, alcoholic beverages, food
stuffs, and tea, (a) Fifty cigars or 300 cigarettes or
3 pounds of manufactured tobacco, and not exceeding one
quart of alcoholic beverages, when brought in by an adult
nonresident passenger, if not for sale or other commercial
use, may be passed free of duty and internal-revenue tax,
(b) Cigars, cigarettes, tobacco, and not exceeding one
quart of alcoholic beverages may be included within the
$100 exemption allowed each adult returning resident.
Internal-revenue tax should be assessed on tobacco products
in excess of 50 cigars, or 300 cigarettes, or 3 pounds of
manufactured tobacco, although included in the exemption
from duty, and on all distilled spirits and wines subject
to duty. Foodstuffs may be included in the $100 exemption,
(c) The quart of alcoholic be-verages which may be im
ported by a nonresident, or by a resident if included
within the $100 exemption, without payment of duty or
internal-revenue tax may consist of lesser quantities of
more than one kind of beverage* In the case of passengers
bringing in more than one kind of tobacco product, the
exemption from internal-revenue tax allowed returning
residents and the exemption from tax and duty allowed
nonresidents may be applied proportionately, for example,
to 25 cigars and 150 cigarettes, or to 25 cigars, 50
cigarettes and 1 pound of manufactured tobacco.
(d) Internal-revenue stamps shall be affixed to
taxable tobacco products imported in baggage. Before
sale of such stamps to a passenger, the customs officer
shall stamp across the face thereof with a rubber stamp
the legend '’United States Customs; imported in passen
ger1s baggage.” No customs inspection stamps are re
quired.
(e) Packages of tea not exceeding 5 pounds in weight
and imported in a passenger*s baggage may bo delivered
without examination for purity under the Act of March 2,
1897, as amended.
J. H. MOYLE
Commissioner of Customs.
Approved:
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury.
EOR RELEASE, MORNING PAPERS,
Thursday, January 11, 1934.
TREASURY DEPARTMENT
. }
-? - .,
. :.
.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
ao e i o h , - i C :
£
i if
,
,
invited for Treasury "bills to the amount of $125,000,000, or thereabouts*
They will be 91-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received at the Federal reserve banks,
or the branches thereof, up to two o'clock p. m . , Eastern Standard time,
on Monday, January 15, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated January 17, 1934, and will
mature on April 18, 1934, and on the maturity date the face amount
will be payable without interest.
They will be issued in bearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers
in investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of ’the face amount of Treasury bills applied for,
-a
unless the tenders are’accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders qn^
January, 15., 1934, all tenders received at the Federal reserve banks or branches./thereof up to the closing hour will, be, .opened ancl, public.,
<
announcement „of the, acceptable....jprjlcps will follow as seen, as possible ...c
thereafter# prfobably on thp
f
ollpwi^g morning». ,The Secretary of.the
Treasury expressly reserves the right to reject, any or all. tenders or
par.ts, pf tenders, and to allot less than the amount.applied for, and
his action in any such respect, shall be final*
Those submitting
tenders will be advised of the.acceptance, oy rejeptipn.thereof•
Pay- •...
ment at the price,offered for Treasury-bi.^l.s allotted must.be made at.
the Federal reserve banks in cash or .other..
on January 17, 1934,
funcLs
....
.\
... .
The Treasury bills will bo..exempt,, as to,-principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inhe^tanco taxes.
No loss
from the salo or other disposition of. the Treasury, bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or .any of .its possessions.
Treasury Department Circular No, 418 ,' as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the. circular may.be obtained from
any Federal reserve bank or T^ranch .thereof •
„
.
For immediate release,
Friday, January 12, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Saturday, January 13, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
For immediate release,
Monday, January 15, 1934.
RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
The Reconstruction Finance Corporation will accept sub
scriptions today for its issue of notes maturing February 1, 1934,
payable only in newly mined gold, that is, gold recovered from
natural deposits in the United States and any territory subject
to its jurisdiction, at the rate of $34.06 per ounce of fine
gold under regulations for consignment, deposit and tender of
gold and delivery of obligations established by the Treasury
Department and Reconstruction Finance Corporation.
JESSE H. JONES,
Chairman, Reconstruction
Finance Corporation.
TREASURY DEPARTMENT
WASHINGTON
MEMORANDUM EOR THE PRESS,
IMEDIATE RELEASE.
January 17
1934
The Commissioner of Customs suggests that attention he called
to provisions of law against the import of liquor through the mails.
It is forbidden by existing law (Title 18, Section 340, U.S.
Code and Supp. V; Section 588, Postal Laws and Regulations |932)
to convey in the domestic mails spirituous, vinous, malted, fer
mented, or other intoxicating liquors of any kind; consequently
such liquors cannot bp imported through the international mail
service.
Where mail parcels containing such liquors are observed
in the mails from foreign countries, provision is made whereby
the parcels may be appropri&tely endorsed and returned to the
country of origin«
Where such parcels are marked for abandon
ment or where for other reasons they are not returned to the
country of origin or exported, they shall be turned over to
Customs by the Postal Service for disposition as seized
merchandise.
TREASURY DEPARTMENT
EOR RELEASE, MORNING- PAPERS,
Thursday, January 18, 1934.
STATEMENT BY SECRETARY MORCENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $125,000,000, or thereabouts.
They will he 91-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received
at the Eederal reserve hanks,
or the branches thereof, up to two o ’clock
p. m. ,Eastern Standard tine,
on Monday, January 22, 1934.
Tenders will not he received at the
Treasury Department, Washington.
The Treasury hills will ho dated January 24, 1934, and will
nature on April 25, 1934, and on the maturity date the face amount
will he payable without interest.
They will he issued in hearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders he made
on the printed forms and
forwarded in the special envelopes which will
he supplied
by the Eederal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender must he in multiples of $1,000.
The price offered mast he
expressed on the basis of 100, with not more than three decimal places,
e. g. , 99.125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers
in investment securities.
Tenders from others must he accompanied by
a deposit of 10 per cent of the face amount of Treasury hills applied
for, unless the tenders are accompanied by an express guaranty of payment
by an incorporated hank or trust company.
2
-
Imnediately after the closing hour for receipt of tenders on
January 22, 1934., all tenders received at the Federal reserve hanks
or branches thereof up to the closing hour will he opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning*
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders .or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at
the Federal reserve banks in cash or other immediately available funds
on January 24, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue,
Copies of the circular may be obtained from
any Federal reserve bank or branch thereof.
TREASURY DEPARTMENT
Bureau of the Budget
Information for the Press
For Immediate release
January 20, 1934,
Many inquiries made of the Bureau of the Budget concerning
(l) the allocation of funds "by the Public Works Administration from
the appropriation of June 16, 1933, of $3,300,000,000, for National
Industrial Recovery, and also concerning (2) the expenditures of the
Reconstruction Finance Corporation, indicate that the persons making
these inquiries have overlooked the fact that summaries of such data
appear in the 1935 Budget,
The allocations from the appropriation
for National Industrial Recovery will be found in Budget Statement
No, 5, page A80, and the summary of the expenditures of the Recon
struction Finance Corporation in Budget Statement No. 6, page A82.
Those statements are listed in the nTable of Contents’1,
page III, but through inadvertence reference to them was not in
cluded in the Budget index.
FOR RELEA.SE, MORNING PAPERS,
Wednesday, January ¡¿4, 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Treasury is today offering for subscription at par and
accrued interest, through the federal reserve banks, $500,000,000, or
thereabouts, 2-1/2 per cent Treasury notes of Series C-1935, maturing
March 15, 1935, and $500,000,000, or thereabouts, 1-1/2 per cent Treasury
certificates of indebtedness of Series TS-1934, maturing September 15,
1934.
The Treasury notes will be dated January 29, 1934, and will
bear interest from that date at the rate of 2-1/2 per cent per annum,
payable on a semiannual basis.
They will mature March 15, 1935, and
will not be subject to call for redemption prior to that date.
The certificates of indebtedness will be dated January 29,
1934, and will bear interest from that date at the rate of 1-1/2 per
cent per annum, payable on a semiannual basis.
They will mature
September 15, 1934.
The Treasury notes and the Treasury certificates of indebted
ness will be exempt, both as to principal and interest, from all tax
ation (except estate or inheritance taxes) now or hereafter imposed by
the United States, any State, or any of the possessions of the United
States, or by any local taxing authority.
Applications will be received at the Federal reserve banks
and branches and at the Treasury Department, Washington.
Banking
institutions generally will handle applications for subscribers, but
only the Federal reserve banks and the Treasury Department are authorized
-
2
-
to act as official agencies.
Applications, unless made by an incorporated bank or trust
company, or by a responsible and recognized dealer in Government
securities, must be accompanied by payment in full or by payment of
10 per cent of the amount of notes or certificates applied for.
The forfeiture of the 10 per cent payment may be declared by the
Secretary of the Treasury if payment in full is not completed on the
prescribed date in the case of subscriptions allotted.
Subscriptions for amounts up to and including $10,000, will
be allotted in full; all other subscriptions will be allotted on an
equal percentage basis.
The Treasury notes will be issued in bearer form only, in
denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000,
with three interest coupons attached, payable on a semiannual basis
on March 15 and September 15, 1934, and March 15, 1935.
The certifi
cates of indebtedness will be issued in bearer form only, in denomina
tions of $500, $1,000, $5,000, $10,000, and $100,000, with two interest
coupons attached, payable on March 15 and September 15, 1934.
The texts of the official circulars follow:
T&BkRURY NOTES - SERIES C-1935
The Secretary of the Treasury offers for subscription, at par
and accrued interest, through the Federal reserve banks, under the
authority of the act approved September 24, 1917, as amended, Treasury
notes of Sories C-1935.
thereabouts.
The amount of the offering is $500,000,000, or
- 3 -
DESCRIPTION OE NOTES
The notes will "be dated January 39, 1934, and will hear
interest from that date at the rate of two and one-half per cent per
annum, payable on a semiannual basis on March 15 and Septan!or 15 in
each year.
They will mature March 15, 1935, and will not be subject
to call for redemption prior to maturity.
Bearer notes with interest coupons attached will be issued
in denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000.
The notes will not bo issued in registered fom.
Til© notes shall be exempt, both as to principal and interest,
from all taxation (except estate or inheritance taxes) now or hereafter
imposed by tho United States, any Stato, or any of the possessions of
the United States, or by any local taxing authority.
The notes will be accepted at par during such time and under
such rules and regulations as shall be prescribed or approved by the
Secretary of the Treasury in payment of income and profits taxes payable
at the maturity of the notes.
The notes will be acceptable to secure deposits of public
moneys, but will not bear the circulation privilege.
APPLICATION AND ALLOTMENT
Applications will be received at the Federal reserve, banks
and branches and at the Treasury Department, Washington.
Banking
institutions generally will handle applications for subscribers, but
only the Federal reserve banks and the Treasury Department are authorized
to act as official agencies.
Subscriptions for amounts up to and including $10,000 will be
4
allotted in full; all other subscriptions will be allotted on an equal
percentage basis.
The Secretary of the Treasury roserves the right to reject any
subscription,
in whole or in pert, and to allot less than the amount of
notes applied for and to close the books as to any or all subscriptions
at any time without notice; the Secretary of the Treasury also reserves
the right to make allotment in full upon applications for smaller amounts,
to make reduced allotments upon, or to reject, applications for larger
amounts, and to make classified allotments and allotments upon a gradu
ated scale; and his action in these respects shall be final.
Allotment
notices will be sent out promptly upon allotment, and the basis of the
allotment will be publicly announced.
PAYMENT
Payment at par and accrued interest for notes allotted must be
made on or before January 29, 1934, or on later allotment.
Any qualified
depositary will be permitted to make payment by credit for notes 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.
Applications, unless made by an
incorporated bank or trust company, or by a responsible and recognized
dealer in Government securities, must be accompanied by payment in full
or by payment of 10 per cent of the amount of notes applied for.
The
forfeiture of the 10 per cent payment may be declared by the Secretary
of the Treasury if payment in full is not completed on the prescribed
date in the case of subscriptions allotted.
- 5 -
GENERAL PROVISIONS
As fiscal agents of the United States, Federal reserve hanks
are authorized and requested to receive subscriptions and to make allot
ments on the basis and up to the amounts indicated by the Secretary of
the Treasury to the Federal reserve banks of the respective districts.
After allotment and upon payment Federal reserve banks may issue interim
receipts ponding delivery of the definitive notes.
CERTIFICATES OF INDEBTEDNESS. SERIES TS-1934
The Secretary of the Treasury offers for subscription, at par
and accrued interest, through the Federal reserve banks, under tne author
ity of the act approved September 24, 1917, as amended, Treasury certifi
cates of indebtedness of Series TS-1934.
The amount of the offering is
$500,000,000, or thereabouts.
DESCRIPTION OF CERTIFICATES
The certificates will be dated January 29, 1934, and will bear
interest from that date at the rate of one and one-half por cent per
annum, payable on a semiannual basis.
They will be payable on September 15,
1934.
Bearer certificates will be issued in denominations of $500,
$1,000, $5,000, $10,000, and $100,000.
The certificates will have two
interest coupons attached, payable on March 15 and September 15, 1934.
The certificates shall be exempt, both as to principal and
interest, from all taxation (except estate and inheritance taxes) now
or hereafter imposed by the United States, any State, or any of tne
- 6 -
possessions of the United States, or by any local taxing authority.
The certificates will be accepted at par during such time and
under such rules and regulations as shall be prescribed or approved by
the Secretary of the Treasury in payment of income and profits taxes
payable at the maturity of the certificates.
The certificates will be acceptable to secure deposits of
public moneys, but will not bear the circulation privilege.
APPLICATION AND ALLOTMENT
Applications will be received at the Federal reserve banks and
branches and at the Treasury Department, Hfeshington#
Subscriptions for amounts up to and including $10,000 will be
allotted in full; all other subscriptions will be allotted on an equal
percentage basis.
The Secretary of the Treasury reserves the right to reject any
subscription, in whole or in part, and to allot less than the amount of
certificates applied for and to close the books as to any or all sub
scriptions at any time without notice; the Secretary of the Treasury also
reserves the right to make allotment in full upon applications for smaller
amounts, to make reduced allotments upon, or to reject, applications for
larger amounts, and to make classified allotments and allotments upon a
graduated scale; and his action in these respects shall be final.
Allot
ment notices will be sent out promptly upon allotment, and the basis
of the allotment will be publicly announced.
PAYMENT
Payment at par and accrued interest for certificates allotted
must be made on or before January 29, 1934, or on later allotment.
Any
7
qualified depositary will be permitted to make payment by credit for
certificates 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.
Applications, unless made by an incorporated bank or trust
company, or by a responsible and recognized dealer in Government
securities, must be accompanied by payment in full or by payment of
10 per cent of the amount of certificates applied for.
The forfeiture
of the 10 per cent payment may be declared by the Secretary of the
Treasury if payment in full is not completed on the prescribed date
in the case of subscriptions allotted.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal reserve banks
are authorized and requested to receive subscriptions and to make allot
ments on the basis and up to the amounts indicated by the Secretary of
the Treasury tc the Federal resorve banks of the respective districts.
After allotment and upon payment Federal reserve banks may issue interim
receipts pending delivery of the definitive certificates.
TREASURY DEPARTMENT
EOR RELEASE, MORNING' PAPERS,
Thursday, January 25, 1934.
STATEMENT BY SECRETARY MORGEN THAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $150,000,000* or thereabouts.
They will be 91-day bills; and will be sold on a discount basis to the
highest bidders«
Tenders will be received
at the Federal reserve banks,
or tne branches thereof, up to two o’clock
p. m., Eastern Standard time,
on Monday* January 29, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated January 31, 1934, and will
mature on May 2, 1934, and on the maturity date the face amount will be
payable without interest.
They will be issued in bearer form only, and
in amounts or denominations of $1,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).It is urged that tenders be made
on the printed forms and
forwarded in the special envelopes which will
be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g. , 99.125.
Fracti ns must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
■unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
January 29, 1934, all tenders received at the Federal reserve banks or
brancnes thereof up tc the closing hour will be opene . and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
Ihe Secretary of t-*e
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
T*aosc submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the "price offered for Treasury bills allotted must be made at
the Federal reserve banks in cash or other immediately available funds
on January 31, 1934,
The Treasury bi^ls will be exempt, as to principal and interest,
and any gain from the sale or ether disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
of hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and tuis
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue..
Copies of the circular may be obtained from
any Federal reserve bank or branch thereof.
TREASURY DEPARTMENT
WASHINGTON
Memorandum for the Press,
January 30, 1934,
The president today approved the Gold Reserve Act of 1934 and
at the same time approved provisional regulations of the Secretary
of the Treasury under the Act,
These regulations provide sub
stantially as follows:
1,
Gold in any form may he acquired, transported, melted or
treated, imported, exported or earmarked or held in custody for foreign
or domestic account (except on behalf of the United States) only to the
extent permitted by and subject to the conditions prescribed in these
Regulations or licenses issued pursuant to them,
2.
Violation of the Regulations will subject the holder of gold
to its forfeiture and to a penalty equal to twice the value of the gold»'
3»
Gold may be transported by carriers only for persons licensed
to hold and transport it or permitted by the Regulations to hold and
transport it,
4»
Gold situated outside the United States may be dealt in
freely.
5.
Similarly, gold situated in the possessions of the United States,
but not including United States gold coin, may be dealt in freely by
persons not domiciled in the United States..
-
6.
2
-
Fabricated gold may be acquired, exported or imported
without a license, but in the case of export an affidavit is
required that the shipment is not being made for the purpose of
disposing of fabricated gold primarily for the value of the gold
content*
Travelers leaving the United States may carry with than
fabricated gold articles for personal use not exceeding fifteen
ounces, without filing an affidavit or obtaining an export license.
7.
Metals containing not more than five troy ounces of fine gold
per short ton are not'subject to license.
8.
Unmelted scrap gold in amounts of not more than five troy
ounces per fine gold may be held or transported without a license.
9.
Gold in its natural state as mined, may be acquired, held
and transported without a license.
10.
Gold coins recognized as of special value to collectors are
exempt from license regulations, but may be exported only under license
issued by the Director of the Mint.
11.
Persons acquiring gold for use in industry, profession or art
in which they are regularly engaged may hold up to a three months’ supply,
but not more than twenty-five ounces of fine gold without a special
license.
12.
The Mints will issue special licenses for buying, holding,
transporting, treating, importing and exporting gold for use in
industries, professions, or arts to dealers and refiners and to persons
requiring a stock of more than twenty^five ounces at a time.
Licenses
so issued shall be for no greater quantities than the estimated require
ment of the licensee for a period of three months.
Such licenses will
3 -
not entitle the licensee to hold gold coin*
License holders are
required to keep exact records of acquisitions and deliveries of
gold and make quarterly reports on them to the Mints*
13*
Federal Reserve hanks are authorized to acquire from the United
States Mints through redemption of gold certificates such amounts of
gold bullion ”as in the judgment of the Secretary of the Treasury
are necessary to settle international balances, or to maintain the
equal purchasing power of every kind of currency of the United States’*•
The Federal Reserve banks are also authorized to acquire gold abroad,
or to acquire in the United States gold that is not being held un
lawfully*
Gold so acquired may be held, transported, imported, ex*
ported, or earmarked, or held in custody for foreign or domestic ac
count for the purposes of settling international balances or main
taining the equal purchasing power of every kind of currency in the
United States.
It is provided, however, that if the gold is not
used for any of these purposes within six months of the date of its
acquisition it must be delivered over to the Treasurer of the United
States for credits in equivalent amounts of dollars, unless the
Secretary of the Treasury shall have .granted an extension. .
14.
No person is permitted to acquire gold from a Federal
Reserve bank, except to the extent that the license issued to
him specifically provides.
15«
Gold which is refined from gold-bearing ore imported into
the United States may be exported under licenses to be issued by the
Assay Office at New York, or the Mint at San Francisco.
The gold-
bearing ore must be declared on its entry and careful records must
be kept.
This continues the Regulations heretofore enforced under
the Executive
Order
16«
Gold may "be imported for re-export if it remains in customs
custody while it is within the customs limits of the United States*
If it is to "be transported within the United States a special license
is required.
IT.
Licenses heretofore issued "by the United States Mints and
Assay Offices, and also hy the Secretary of the Treasury, under
previous orders are validated until March 15, 1934*
TREASURY DEPARTMENT
WASHINGTON, D. C.
January 30, 1934
MEMORANDUM FOR THE PRESS
(Not to be quoted as a Treasury statement)
Summary of the provisions of the Gold Reserve Act
of 1934 signed by the President, Tuesday,. January 30, 1934,
1*
Vests in the United States Government title to all
gold coin and gold bullion held by the Federal Reserve Board,
the Federal Reserve Banks and Federal Reserve agents and
authorizes credits in equivalent amount of dollars in the
Treasury accounts,
2,
Authorizes payment of balance of such accounts in
gold certificates 11in such form and in such denominations as
the Secretary of the Treasury may determine”•
3,
Amends the Federal Reserve Act to provide that
Federal Reserve notes shall be redeemed in lawful money instead
of in gold,
4,
Eliminates the word gold from the provision that gpld
or gold certificates may constitute part of the collateral
security for Federal Reserve notes,
5,
Substitutes gold certificates for gold in reserve
requirements,
6,
Eliminates provisions with respect to redemption
of Federal Reserve notes in gold,
7,
Provides that the redemption fund against Federal
Reserve notes tc be held by the Treasury shall be in gold
certificates instead of in gold.
-2
8.
-
Provides that deposits of gold, or of gold certi-
ficates, received "by the Treasury from the Federal Reserve
Banks, or Federal Reserve agents, for credit to accounts with
the Federal Reserve Board, shall he payable in gold certificates
instead of (in gold coin or gold certificates)*
9*
Authorizes the Secretary of the Treasury to pre
scribe by regulations made with the approval of the President,
the conditions under which gold may be acquired and held,
transported, melted or treated, imported, exported or ear
marked:
(a) for industrial, professional and
artistic uses,
(b) by the Federal Reserve Banks for the
purpose of settling international
balances,
(c) for such other purposes as in the Sec
retary’s judgment are not inconsistent
with the purposes of the act*
Also provides forfeiture of the gold and additional penalty
of twice its value for failure to comply*
10*
Provides that no gold shall hereafter be coined
and no gold coins shall hereafter be paid out or delivered
by the United States, but that all gold coin shall be with
drawn from circulation and with other gold owned by the United
States shall be formed into bars of such weights and fineness
as the Secretary of the Treasury may direct.
~ 3 -
11,
No currency of the United States shall he redeemed
-in gold hereafter except as permitted in regulations which may
he issued hy the Secretary with the approval of the President,
hut with the provision that gold certificates owned hy the
Federal Reserve Banks shall he redeemed at such times and in
such amounts as the Secretary deems necessary to maintain the
equal purchasing power of every kind of currency in the United
States. Redemptions are to he made only in gold hullion
* '\
hearing the stamp of the United States Mint or Assay Office
in an amount equivalent, at the time of redemption, to the
currency surrendered for such purpose.
12.
The reserve for United States notes and for Treasury
notes of 1890 and the security for gold certificates is to he
maintained in gold hullion and the reserve for Federal Reserve
notes is to he maintained in gold certificates, or in credits
payable in gold certificates maintained in the Treasury of the
United States.
13.
In the event the weight of the gold dollar shall he
reduced, the resulting increase in the value of the gold held
hy the United States shall he covered into the Treasury as a
miscellaneous receipt and in the event of an increase in the
weight of the gold dollar, the resulting decreasq in gold
reserves for United States notes and Treasury notes and the
security for gold certificates is to he compensated hy trans
fers of gold bullion from the general fund.
14*
k
-
The Secretary of the Treasury is authorized to purchase
gold in any amounts, at home or abroad, at such rates and upon such
terms and conditions as he deems most advantageous to the public
interest, and all such gold is to be included as an asset to the
general fund of the Treasury.
15.
The Secretary of the Treasury is also authorized to sell
gold in any amounts, at home or abroad, but sales from the reserves
or security for currency shall be made only to the extent necessary to
maintain the currency at a parity with the gold dollar.
16.
The Secretary of the Treasury is authorized to
deal in gold and foreign exchange and such other instruments of
credit and securities as he may deem necessary for the purpose of
^stabilizing the exchange value of the dollar.
17.
To enable the Secretary of the Treasury to do this there
is set up a fund of $2,000,000,000 out of the increase in value of
gold, which may result from devaluation and such portions of the
fund as are not currently required for the stabilization of the
dollar may be invested or reinvested in government securities.
IS.
The powers of the Secretary with respect to this fund
shall expire two years from the date of the enactment of the act,
but the President may terminate the powers earlier or may extend them
for another year.
19.
Tlie authority given to the President in Title 3 » Public
No. 10, 73 rd Congress (Thomas Amendment) is amended to provide
that the weight of the gold dollar to be fixed in the
event of devaluation, shall not be more than sixty per cent of
- 5 -
its present weight*
The President's power in this respect is
made continuing for successive revaluations during the period
of two years, with the provision that the President may terminate
the power earlier or may extend it for anotner year by proclama
tion*
20*
By additional amendments to the above act the
President is given added powers with respect to silver, as follows
(a) to cause silver certificates to he paid
to those who tender silver for coinage? in place
of standard silver dollars;
(b) to issue silver certificates against any
silver or silver dollars in the Treasury not held
for redemption of outstanding silver certificates;
(c) to coin standard silver dollars, or sub
sidiary currency, for the redemption of such cer
tificates;
(d) to prescribe different terms and conditions
and to make different seigniorage charges for the
coinage of silver of foreign production than for
that of domestic production;
(e) to reduce the weight of the standard
silver dollar in the same percentage that he re
duces the weight of the gold dollar;
- 6~
(f)
s id ia r y
t o re d u c e and f i x
th e w e ig h t o f sub
c o in so a s t o m a in t a in t h e i r p a r i t y w it h
t h e s ta n d a rd s i l v e r d o l l a r and th e g o ld d o l l a r .
21.
R e g u la t io n s ,
o r d e r s and p r o c la m a t io n s o f t h e
P r e s id e n t and th e S e c r e t a r y u n d e r t h e a c t o f M a rch 9, 1933»
and u n d e r T i t l e 3 o f th e a c t o f May 12, 1933, a r e a p p ro v e d and
r a t if ie d .
22.
The se co n d L i b e r t y bond a c t i s
amended t o g iv e
th e S e c r e t a r y o f th e T r e a s u r y g r e a t e r l a t i t u d e
i n v a r io u s
is s u e s o f s e c u r i t i e s .
23.
The S e c r e t a r y o f th e T r e a s u r y i s a u t h o r iz e d t o
is s u e g o ld c e r t i f i c a t e s a g a in s t any g o ld h e ld b y th e T r e a s u r y
o f th e U n it e d S t a t e s e x c e p t t h a t h e ld as r e s e r v e f o r U n it e d
S t a t e s n o t e s and T r e a s u r y n o t e s o f 1890*
2U*
The S e c r e t a r y o f t h e T r e a s u r y i s a u t h o r iz e d t o
is s u e su ch r e g u l a t i o n s a s he may deem n e c e s s a r y to c a r r y o u t
th e p r o v i s i o n s o f th e a c t .
Treasury Department,
Office of the Secretary,
January 30, 1934.
PROVISIONAL REGULATIONS
issued under the
GOLD RESERVE ACT OE 1934
ARTICLE I,
Section 1.
GENERAL PROVISIONS
Authority for regulations.— These regulations, deemed
necessary and proper "by ^he Secretary of the Treasury to carry out the
purposes of the Gold Reserve Act of 1934, approved January 30, 1934,
are issued "by the Secretary of the Treasury, with the approval of the
President, under authority of said Act.
Sec. 2. Scope.— These regulations refer particularly to Sections
3 and 4 of the Gold Reserve Act of 1934.
The provisions of these regulations may "be revoked or modified
at any time and any license outstanding at the time of such revoca
tion or modification shall "be modified thereby to the extent pro
vided in such revocation or modification.
Sec. 3*
Titles and subtitles.— The titles and subtitles of these
regulations are inserted for purposes of ready reference and are not
to be construed as constituting a part of these regulations.
Sec. 4.
Definitions.— As used in these regulations, the termr-
”Act” means the Gold Reserve Act of 1934, approved January 30,
1934.
’’United States” means the Government of the United States, or,
where used to denote a geographical area, means the continental
United States and all other places subject to the jurisdiction of the
United States»
’’Continental United States” means the States of the United States,
the District of Columbia, and the Territory of Alaska..
-
2
~
"Currency of the United States" means currency which is legal
tender in the continental United States, and includes United States
notes, Treasury notes of 1S90, gold certificates, silver certificates,
Federal Reserve notes, and circulating notes of Federal Reserve hanks
and national hanking associations.
"Person" means any individual, partnership, association, or cor
poration, including the Federal Reserve Board, Federal Reserve hanks,
and Federal Reserve agents.
"Mint" means a United States mint or assay office, and wherever
authority is conferred upon a "mint" such authority is conferred upon
the person locally in charge of the respective United States mint or
assay »ffice acting in accordance with the instructions of the Direc
tor of the Mint or the Secretary of the Treasury*
"Mint district" means one of the following areas:
The mint district of Philadelphia, which for the purposes of these
regulations consists of the States of Illinois, Indiana, Kentucky,
Maryland, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina,
Virginia, and West Virginia, and the District of Columbia.
The mint district of New York, which for the purposes of these
regulations consists of the States of Connecticut, Delaware, Maine,
Massachusetts, Michigan, New Hampshire, New Jersey, New York,
Rhode Island, Vermont, and Wisconsin, and Puerto Rico, the Virgin
Islands of the United States, and the Panama Canal Zone.
The mint district of Denver, which for the purposes of these
regulations consists of the States of Colorado, Iowa, Kansas, Minnesota,
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota,, Utah,
and Wyoming.
- 3 -
The mint district of San Francisco, which for the purposes of these
regulations consists of the States of Arizona, California, and Nevada,
and the Territories and possessions of the United States not specifi
cally included in other mint districts»
The mint district of Seattle, which for the purposes of these regu
lations consists of the States of Idaho, Montana, Oregon, and Wash
ington, and the Territory of Alaska#
The mint district of New Orleans, which for the purposes of these
regulations consists of the States of Alabama, Arkansas, Florida,
Georgia, Louisiana, Mississippi, Tennessee, and Texas.
’’Gold coin” means any coin containing gold as a major element,
including gold coin of a foreign country.
•'Gold bullion” means any gold which has been put through a
process of smelting or refining, and which is in such state or condi
tion that its value depends primarily upon the gold content and not
upon its form; but it does not include metals containing less than 5
troy ounces of fine gold per short ton, nor does it include gold coin.
’•Fabricated gold” means gold which has, in good faith and not
for the purpose of evading, or enabling others to evade, the pro
visions of the Act or of these regulations, been processed or manu
factured for some one or more specific and customary industrial,
professional, or artistic uses, but dees not include gold coin or
scrap gold.
’’Scrap gold” means gold sweepings and fabricated gold, the
value of which depends primarily upon its gold content and not
upon its form, which is no longer held for the use for which it was
processed or manufactured.
Wherever reference is made in these regulations to equivalents
as.between dollars or mirrflncy of the United States and gold. $1 or
$1 face amount of any currency of the United States equals such a
number of grains of gold, nine tenths fine, as, at the tire referred
to, are contained in the standard unit of value, that is, so long as
the President shall not have altered by proclamation the weight of
the gold dollar under the authority of section 43, title III, of the
Act approved May 12, 1933, as heretofore and by the Act amended,
twenty-five and eight tenths grains of gold, nine tenths fine, and
thereafter such a «umber of grains of gold, nine tenths fine, as the
President shall have fixed under such authority.
Wherever reference is made in these regulations to "articles'1
or "section", the reference is, unless otherwise indicated, to the
designated articles and sections of these regulations.
Sec. 5.
General provisions affecting applications. affidavits,
reports.
Every application, affidavit, and report required to be
made hereunder shall be made upon the appropriate form prescribed
by the Secretary of the Treasury and, except insofar as these regula
tions may otherwise specify, shall be executed under oath before an
officer authorized to administer oaths.
Duplicate copies properly
executed shall be filed with the agencies designated in these regula
tions lor that purpose.
Action upon any application or affidavit
may be withheld pending the furnishing of any or all of the informa
tion required in such forms or of such additional information as
may be deemed necessary by the Secretary of the Treasury, or the
agency authorized or directed to act hereunder.
There shall be
attached to the applications, affidavits, or reports such instruments
a s may b e r e q u ir e d b y th e t e r n s t h e r e o f and s u c h f u r t h e r in s t r u m e n ts
a s may be r e q u ir e d b y th e S e c r e t a r y o f th e T r e a s u iy , o r b y s h c h a g e n cy .
W henever a d d i t i o n a l in f o r m a t io n i s re q u e s t e d i t
s h a l l b e f u r n is h e d u n d e r
o a th .
S e c. 6 .
d o n e ra i p ro v i e n e
a f f e c t in g lic e n s e s . —
( l ) L ic e n s e s is s u e d
p u r s u a n t t o th e s e r e g u la t io n s s h a l l b e upon t h e a p p r o p r ia t e fo rm p r e s c r ib e d
b y th e S e c r e t a r y o f t h e T r e a s u r y .
s h a ll e n t it le
L ic e n s e s s h a l l b e n o n - t r a n s f e r a b le and
t h e lic e n s e e t o a c q u ir e , t r a n s p o r t , m a lt o r t r e a t ,
im p o r t,
e x p o rt,
o r e a rm a rk o r h o ld i n
o n ly i n
s u c n fo rm and t o t h e e x t e n t p e r m it t e d b y , and s u b je c t t o t h e c o n
d i t i o n s p r e s c r ib e d i n ,
(2 )
c u s t o d y f o r f o r e i g n o r d o m e s tic a c c o u n t , g o ld
th e s e r e g u la t io n s , and s u c h l i c e n s e s .
L ic e n s e s may b e m o d if ie d o r re v o k e d a t any tim e i n t h e d i s c r e t i o n
o f th e S e c r e t a r y o f th e T r e a s u r y a c t in g d i r e c t l y ,
w h ic h is s u e d t h e l i c e n s e ,
o f th e T re a s u ry .
o r th r o u g h t h e a g en cy
o r an y o t h e r a g e n cy d e s ig n a te d b y t h e S e c r e t a r y
I n t h e e v e n t t h a t a li c e n s e
i s m o d if ie d o r re v o k e d ( o t h e r
th a n b y a m o d if ic a t io n o r r e v o c a t io n o f th e s e r e g u l a t i o n s ) , t h e S e c r e t a r y
o f th e T r e a s u r y , o r t h e a g e n c y t h r o u g h w h ic h th e li c e n s e was is s u e d , o r su ch
o t h e r a g e n cy d e s ig n a t e d b y th e S e c r e t a r y o f t h e T r e a s u r y ,
s h a l l a d v is e t h e
l i c e n s e e by l e t t e r m a ile d t o t h e a d d re s s o f t h e li c e n s e e s e t f o r t h
a p p lic a t io n .
The li c e n s e e , u p o n r e c e i p t o f s u c h a d v ic e ,
s u r r e n d e r h i s l i c e n s e a s d ir e c t e d i n su ch a d v ice -.
m o d if ie d li c e n s e .
s h a l l f o r t h w it h
I f th e l i c e n s e h a s b e e n
m o d if ie d b u t n o t re v o k e d , th e S e c r e t a r y o f t h e T r e a s u r y ,
th r o u g h w h ic h th e o r i g i n a l l i c e n s e was is s u e d ,
th e
o r th e a g e n cy
s h a l l th e re u p o n is s u e a
-5 -
(3 )
No license issued hereunder shall authorize the licensee to
hold any gold coin, or any gold melted by any person from gold coin,
unless the license contains a specific provision to that effect.
(1+)
No license issued hereunder shall exempt the licensee from
the duty of complying with the legal requirements of any State or
Territory or local authority.
(5)
No license shall be issued to any person doing business under
a name which, in the opinion of the Secretary of the Treasury or the
designated agency issuing the license, is designed or is likely to
induce the belief that gold is purchased, treated, or sold on behalf
of the United States or for the purpose of carrying out any policy of
the United States.
Sec. J. General provisions affecting export licenses.— At the
time any license to export gold is issued, the Federal Reserve bank
or mint issuing the same shall transmit a copy thereof to the collector
of customs at the port of export designated in the license.
Collectors
of customs shall not permit the export or transportation from the
continental United States of gold in any form except upon sur
render of a license to export, a copy of which has been received by
him from the Federal Reserve bank or the mint issuing such license:
Provided, however, That the export, or transportation from the con
tinental United States, of fabricated gold may be permitted subject
to the provisions of section 1 6 ( 2 ) : And provided further, T h a t gold
held by the Federal Reserve banks under article IV may be exported
for the purposes, of such article without a license.
The collector
of customs to whom a license to export is surrendered shall cancel
such license and return it to the Federal Reserve bank or mint which
-
i ssued the same.
6-
In the event that the shipment is to he made h y
mail, a copy of the export license shall he sent to the postmaster of
the post office designated in the application, who will act under the
instructions of the Postmaster General in regard thereto.
Sec. 2>.
General provisions affecting import licensee.
No gold
in any form imported into the United States shall he permitted to
enter until the person importing such gold shall have satisfied the
collector of customs at the port of entry that he holds a license
authorizing him to import such gold or that such gold may he imported
without a license under the provisions of article II or IV.
Post
masters receiving packages containing gold will deliver such gold
subject to the instructions of the Postmaster General.
Sec. 9 ." Forms available-- Any form, the use of which is pre
scribed in these regulations, may he obtained at, or on written
request to, any United States mint or assay office, Federal Reserve
bank;, and at the Treasury Department, Washington, D. C.
Sec. 10.
Representations by licensees.— Licensees may include
in public and private representations or statements the clause
»licensed on form TGL_________ (here inserting the number of the.form
of license held by the licensee) pursuant to the regulations pre
scribed under the Gold Reserve Act of I93 U», but any representation
or statement which might induce the belief that the licensee is
acting or is especially privileged to act on behalf of or for the
United States, or is purchasing, treating, or selling gold for the
United States, or in any way dealing in gold for the purpose of car
rying out any policy of the United States, shall be a violation of
the conditions of the license.
-7 -
Each agency issuing licenses hereunder which receives notice
of any such representations or statements made hy or with the ac
quiescence of any license© shall promptly notify the Secretary
of the Treasury in order that he may advise it whether or not the
license of the person making such representations or statements,
or permitting such representations or statements to he made,
should he revoked.
Sec. 11. Penalties.— Any gold withheld, acquired, transported,
melted or treated, imported, exported, or earmarked or held in
custody in violation of the Act, or of any regulations issued
ther under, including these regulations, or of any licenses issued
pursuant thereto or hereto, shall he forfeited to the United States
and may he seized and condemned hy like proceedings as those pro
vided hy law for the forfeiture, seizure, and condemnation of
property imported into the United States contrary to law; and,
in addition, any person failing to comply with the nrovisions of
the Act or of any such regulations or licenses shall he subject
to a penalty equal to twice the value of the gold in respect of
which such failure occurred.
ARTICLE II.
CONDITIONS UNDER WHICH G-OLD MAY BE ACQUIRED AND
HELD. TRANSPORTED, MELTED OR TREATSD, IMPORTED, EXPORTED,
OR EARMARKED OR HELD IN CUSTODY FOB FOREIGN OR .DOMESTIC
ACCOUNT.
Section 12.
Gold in any form may he acquired, transported,
m e lte d or treated, imported, exported, or earmarked or held in cus
tody for foreign or domestic account (except on hehalf of the
United States), only to the extent permitted hy, and subject to
the conditions prescribed in, these regulations or licenses issued
pursuant to these regulations.
-
Sec. 1 3 .
8
-
Transportation of gold.— Gold may be transported by
carriers for persons who are licensed to hold a.nd transport such
gold or who are permitted by these regulations to hold and transport
gold without a license.
Gee.
Ik.
Gold situated outside of the United States.— Gold in
any form situated outside of the United States may be acquired,
transported, melted or treated, or earmarked or held in custody
for foreign or domestic account without the necessity of holding
a license.
Sec. 1 5 .
Gold situated in the possessions of the United States.
— Gold in any form (other than United States gold coin) situated
in places subject to the jurisdiction of the United States beyond
the limits of the continental United States may be acquired, trans
ported, melted or treated, imported, exported, or earmarked or
held in custody for the account of persons other than residents
of the continental United States, by persons not domiciled in the
continental United States: Provided, however, That gold may be trans
ported from the continental United States to the possessions of the
United States only under license for export issued pursuant to
sections 25 (3 ), 3 2 , 3 3 , or 3 ^, or, if fabricated gold, subject to
the conditions specified in section 16 (2 ).
- 9 -
Sec. 16. Fabricated gold.— (l) Fabricated gold may be acquired,
transported within the United States, imported, or held in custody for
domestic account without the necessity of holding a license therefor;
Provided, however, That it may be transported from the continental United
States to other places subject to the jurisdiction of the United States
only subject to the conditions hereinafter specified in paragraph (2) of
this section.
(2) Fabricated gold may be exported, or transported from the conti
nental United States, without the necessity of obtaining a license, pro
vided that an affidavit shall have been executed on form TG— 10 and filed
in duplicate with the Collector of Customs at the port of shipment from
the continental United States or with the Postmaster at the place of
mailing; and such Collector or Postmaster shall have endorsed on the
duplicate copy of such affidavit that he is satisfied that the shipment
from the continental United States is not being made for the purpose of
holding or disposing of the fabricated gold outside of the continental
United States, primarily for the value of the gold content:
Provided,
further, That persons leaving the continental United States may carry with
them fabricated gold owned by them and for their personal use in its fabri
cated form of a fine gold content not exceeding 15 ounces without the necess
ity of filing such affidavit or obtaining an export license.
Sec. 1 7 . Metals containing gold.— Metals containing not more than 5
troy ounces of fine gold per short ton may be acquired, transported within
the United States, imported, or held in custody for domestic account without
the necessity of obtaining a license therefor.
Such metals may be melted or
treated, exported, and held in custody for foreign account only to the extent
permitted by, and subject to the conditions prescribed in or pursuant to
articl III.
-
Sec. 18.
10-
DaneIted. scrap gold.— Unmelted scrap gold may be held
and transported within the United States in amounts containing not
more than 5 troy ounces of fine gold without the necessity of holding
a license.
Sec. 19.
Gold in its natural state.— Gold in its natural state
(i*Q.„ gold recovered from natural sources which has not been melxed,
smelted, or refined or otherwise treated ty heating or oy a chemical
or electrical process) may be acquired, transported within the United
States, inported, or held in custody for domestic account without
the necessity of holding a license therefor.
Such native gold m a y b e
melted cr* treated or exported only to the extent permitted by, and
subject o
the conditions prescribed in, or pursuant to, article III.
Sec. 20.
Rare coin.— Goldcoin of recognized special value to
collectors of rare and unusual coin (but not including quarter eagles,
otherwise known as $2.50 pieces, unless held, together with rare and
unusual coin and as part of a collection for historical, scientific,
or numismatic purposes, containing not more than four quarter eagles
of the same date and design, and struck by the same mint) may be
acquired and held, transported within the United States, imported or
held in custody for domestic account without the necessity of holding
a license therefor.
Such coin m a y b e exported only under license on
form TGL-11 issued by the Director of the Mint.
Application for such
a license shall be executed on form TG-11 and filed with the Director
of the Mint, Washington, D.C.
ARTICLE III.
Section 21.
GOLD DOR INDUSTRIAL, PROFESSIONAL, ALP
ARTISTIC USE
»Twenty-five-ounce exemption”.— Any person requiring
gold, for use in the industry, profession, pr art in which he is regularly engaged may replenish his stocks of gold (in addition to fabri-
-
11
-
cated gold) up to the amount actually required for a period not
exceeding 3 months (but in no event in an aggregate amount exceed
ing 25 ounces of fine gold held at any one time) by acquisitions of
gold bullion held under licenses issued pursuant to section 23,
without the necessity of obtaining a license for such acquisitions;
and the gold so acquired may be held, transported, melted or treated,
for use by such person in his industry, profession, or art but for
no other purpose.
Gold may not be acquired and held under this
section by persons engaged primarily or incidentally in the business
of buying and selling gold other than fabricated gold.
Sec. 22.
Licenses required.— Except as permitted in article II
and in section 21 of this Article, gold may be acquired and held,
transported, melted or treated, imported, exported, or earmarked
for industrial, professional, or artistic use only to the extent
permitted, by licenses issued under section 23 hereof.
Sec. 23.
Purposes for which licenses shall be issued.— The mints
shall issue licenses authorizing the acquisition and holding, trans
portation, melting and treating, importing, exporting, and holding
for domestic account of gold which the mint is satisfied is required
for legitimate and. customary use in industry, profession, or art,
by an applicant regularly engaged in the mint district of such mint
(l) in the business of furnishing or processing gold for industry,
profession, or art, or for sale to the United States, (2) in an
industry, profession, or art in which stocks of gold in excess of
25 fine ounces are required to be maintained by the applicant.
Sec. 24.
Applications.--Every application for a license under
section 25 shall be made on form TG-12 (except that applications
for export shall be made on form TG-15) and shall be filed in
duplicate with the United States mint for the mint district in
which is located
la
the applicant’s principal place of business.
No person shall make
application to more than one mint; and, in the event any one person
is, through misrepresentation or mistake, issued a license under
this article by more than one mint, all licenses issued to such person
shall be void from the date of issuance to such person of a license
by a second mint.
Every applicant for a license -under section 23
snail state in his application whether or not any applications have
been filed by or licenses issued to any partnership* association, or cor
poration in which the applicant has a substantial interest or if the
applicant is a partnership, association, or corporation, by or to a
person having a substantial interest in such partnership, association,
or corporation.
No mint shall issue any license to any person if in
its judgment more than one license for the same purpose will be held
for the principal use or benefit of the same persons or interests.
Any
person licensed under this article acquiring a principal interest in
any partnership, association, or corporation holding a license under
this article for this purpose shall immediately so inform the mints
which issued the licenses.
Sec. 2 5 . Licenses.— (l) Upon receipt of the application and after
making such investigation of the case as it may deem advisable, the
mint, if satisfied that gold is necessary for the legitimate and
customary requirements of the applicant’s industry, profession, art,
or business, shall issue to the applicant a license on form TG-L-12,
TGL-1 3 , or TGL-lU, whichever is designated in rulings of the Secretary
of the Treasury for the kind of business, industry, profession, or art
in which the applicant is engaged.
(2) Licenses issued under this artic|^ may entitle the licensee to
acquire and hold not to exceed a maximum amount specified therein,
which amount shall not be greater than the estimated requirements of
the licensee for a period of 3 months; and such license may authorize
-
13
-
the licensee to transport such gold from place to place within the United
States, melt or treat it to the extent necessary to meet the requirements
of the industry, profession, or art from which it was acquired nid held or
otherwise to carry out the purposes for which it is held under license, and
may authorize the licensee to import gold so long as the maximum amount of
gold held after importation does not exceed the maximum amount authorized by
the license to he held.
(3 ) Wo license on form TG-L-12, TG-L-13> or TGL-lh, shall authorize the
licensee to export or transport from the continental United States, without
a supplementary license on form TG-L-15 issued by the mint which issued the
license on form TG-L-12, TGL-13 > or TGL~lh, gold in any form (except that
fabricated gold may be exported or transported from the continental United
States subject to the conditions specified in section l6 (2).
Export
licenses on form TGL-1§ shall be issued only with tho approval of the
Secretary of the Treasury, and upon application made on form TG~'15 showing
to tho satisfaction of the mint and the Secretary of the Treasury that the
export or transport from the continental United States is for a specific
and customary industrial, professional, or artistic use connected with
the applicant's business, and not for the purpose of using or holding or
disposing cf such gold beyond the limits of the continental United States
as, or in lieu of, money, or for the value of its gold content.
Wo license issued under this article shall entitle the licensee
to acquire and hold, transport,
melt or treat, import or export, or hold
in custody any gold coin.
Sec. 26.— Records.— Every person holding a license issued pursuant to
section 23 shall keep exact records of all his acquisitions and deliveries
of gold.
His records shall contain the name, address, and
license number of each, person from whom he acquires? or to whom
he delivers, gold (other than fabricated gold) and shall show the
amount, date, and description of each such acquisition and delivery,
and such records shall bo available for examination by a
vr
prosenta—
tive of the Treasury Department for at least 1 year after the date
of the disposition of such gold.
Sec. 27.— Reports.— Evory person holding a license on form
TGL-12., TGL-1 3 , or TGL~l4 shall file with the mint which issued his
license; on or before the 15 th day of February, May, August, and
November, a report on form TGR-12, TGB-13, or TGR-lU, respectively,
for the quarter ending on the first day of such months.
ABTICLE IV.
GOLD FOR THE PURPOSE OF SETTLING- INTSBBATTONAL
BALANCES, AND FOR OTHER PURPOSES.
Section 2S.~~The Federal Reserve banks may from time to time
acquire from the United States by redemption of gold certificates
in accordance with section 6 of the Act, such amounts of gold bullion
as, in the judgment of the Secretary of the Treasury, are necessary
to settle international balances or to maintain the equal purchasing
power of every kind of currency of the United States.
Such banks
may also acquire gold abroad or may acquire gold in the United States
which has not been held in noncompliance with the Executive orders,
or the orders of the Secretary of the Treasury, issued under sections
2 and 3 of the Act of March 9 , 1933> entitled "An act to provide
relief in the existing national emergency in banking and for other
purposes", or in noncompliance with any regulations or rulings made
thereunder or licenses issued pursuant thereto, or acquired and held,
transported, melted or treated, imported, exported, earmarked or held
in custody for foreign or domestic account in violation of the Act or
regulations issued thereunder, including these regulations.
Sec. 2 9 .— The gold acquired under section 28 may be held, trans
ported, imported, exported, or earmarked or held in custody for
foreign or domestic account for the purposes of settling interna-
-15 t i o n a l 1= a a n o e s o r m a in t a in in g th e e q u a l p u r c h a s in g pow er o f e v e ry
k in d o f c u r r e n c y o f th e U n it e d S t a t e s :
P r o v id e d . T h a t i f
t h e g o ld i s
n o t u s e d f o r * ic h p u rp o s e s w i t h i n 6 m onths from th e d a te o f a c q u i s i
t io n ,
it
s h a l l ( u n le s s fh e S e c r e t a r y o f th e T r e a s u r y s h a l l h a ve
e x te n d e d t h e p e r io d w it h in w h ic h s u c h g o ld may he so h e ld ) he p a id
and d e liv e r e d t o th e T r e a s u r e r o f t h e U n it e d S t a t e s a g a in s t paym ent
t h e r e f o r by c r e d i t s i n e q u iv a le n t am ounts i n d o l l a r s
m t h e a c c o u n ts
a u t h o r iz e d u n d e r t h e s ix t e e n t h p a ra g ra p h o f s e c t io n 16 o f th e f e d e r a l
R e s e rv e A c t ,
a s amended,,
S e c . 3 0 . —-The p r o v i s i o n s o f t h i s a r t i c l e
s h a l l n o t he c o n s tr u e d t o
p e r m it any p e r s o n s u b je c t to t h e j u r i s d i c t i o n o f th e U n it e d S t a t e s ,
o t h e r t h a n a f e d e r a l R e s e rv e hank:, t o a c q u ir e g o ld f o r th e p u rp
s p e c if ie d in t h is a r t ic le ,
o r t o p e r m it any p e r s o n to a c q u ir e g o ld fro m
a F e d e r a l R e s e rv e hank e x c e p t t o th e e x t e n t t h a t h i s l i c e n s e
is s u e d
hereunder specifically so provides.
ATjnwrtw.* v
ODT,D FOR
PURPOSES NOT INCONSISTENT
WTTK THE* PURPOSES QF THE GOLD RfSf.RVf, A M Of 19.
34
sec. «1 -T.i-rmee required.-Gold may he acquired and held, trans
ported, melted or treated, imported, exported, or earmarked or held
in custody for foreign or domestic account, for purposes
those specified in articles II! and IV not inconsistent with the pur
poses of the Act only to the extent permitted in article II or under a
license issued under section 32, 33, or 34,.
Sec. ""
rnli
gold-bearing materials for reexport.--
The United States assay office at Hew fork or the United States mint
at San Francisco shall issue licenses on form TGL-16, authorising the
export of gold which such assay office or mint is satisfied was
fined (or is equivalent to gold refined) from gold-hearing materials
imported into the United States, provided such gold is imported,,
acquired, and held, transported, melted and treated as permitted
in article J J j y in accordance with a license issued under section
23 hereof and subject to the following provisions:
-
1.
16
-
Notation upon entry.— Upon the formal entry into the United
I
States of any gold-hearing materials, the importer shall declare to
the collector of customs at the port where the material is formally
entered that the importation is made with the intention of exporting
the gold refined therefrom.
The collector shall make on the entry
a notation to this effect and forward a copy of the entry to the
United States assay office at New York or to the United States mint
at San Francisco, whichever is designated "by the importer,
2.
Sampling and assaying.—
Promptly upon the receipt of each im
portation of gold-hearing material at the plant whore it is first to he
treated, it shall he weighed, sampled, and assayed for the gold con
tent,
A reserve commercial sample shall he retained "by such plant
for at least 1 year from the date of importation, unless the assay
is sooner verified hy the Treasury Department,
3«
Plant records.— The importer shall cause an exact record, cov
ering each importation, to he kept at the plant of first treatment.
The records shall show the gross wet weight of the importation, the
weight of containers, if any, the net wet weight, the percentage and
weight of moisture, the net dry weight, and the gold content shown
hy the settlement assay.
An attested copy of such record shall he
filed promptly with the assay office at New York or the mint at
San Francisco, whichever has heen designated to receive a copy of
the entry.
The plant records herein required to he kept shall he
available for examination hy a representative of the Treasury De
partment for at least 1 year after the date of the disposition of
such gold.
Ij-.
Application for export license.— Not later than 3 months from
the date of entry the importer shall file with the New York assay
office or the mint at San Francisco, whichever has heen designated to
receive a copy of the entry, an application on form TG-16 for a
-1 7 -
permit to export refined gold not in excess of the amount sho^u
by the settlement sheet covering the importation.
The application
shall be accompanied by two duly attested conies of the settlement
sheet.
5«
Issuance of serial numbered certificates.--If the mint is
satisfied as to the accuracy of the data shown on such application,
it shall issue to the importer a dated serial numbered certificate,
which shall show the amount of gold specified by the application and
the amount specified by the sett lement sheet.
The Director of the
Mint shall prescribe the form of such certificate.
6.
Issuance of export license.— Upon delivery of the serial
numbered certificate to the assay office at New York or to the mint
at San Francisco, whichever has issued the certificate, within 120
days from the date the certificate was issued, the mint shall issue
to the applicant an export license on form TGL-16 to export rofinod
gold in an amount not exceeding the amount specified in the settle
ment sheet as shown on such certificate.
7 . Exportation prior to receipt of settlement sheet.— Upon a
showing in the application that an exportation with respect to any
gold-bearing’ materials imported into the United States for refining
is necessary prior to the time the settlement sheet can be procured,
the assay office at New York or the mint at San Francisco, whichever
was designated by the importer, may receive the application with
duplicate certified copies of the report of the applicant's actual
test assay.
If prior reports of such applicant have been approximately
substantiated by the settlement sheets, a license to export up to 90
percent of the amount of gold which such report estimates will be
realized from such gold-bearing materials may be granted.
Sec. 33» Gold imported for reexport.— Geld may be imported, trans
ported, and exported without the necessity of holding a license, provided
the gold remains under customs custody throughout the period during which
it is within the customs limits of the United States.
Except as provided
in the foregoing sentence, gold may he imported for reexport, held, and
transported within the United States under the provisions of this section
only under license.
The United States assay office at New York or the
United States mint at San Erancisco may, subject to the following
provisions, issue licenses on form TGL-17 authorizing the importation,
holding,
transportation, a.nd exportation of gold which the office or
mint is satisfied is imported for prompt reexport.
(1) Notation upon entry.— Upon the formal entry into the United
States of gold intelided for prompt reexport, the importer shall declare
to the collector of customs at the port where the gold is formally
entered that it is entered for prompt reexport.
The collector shall
make a notation of this declaration upon the entry and forward a copy of the
entry to the assay office, at New York or the mint at San Francisco,
whichever is designated by the importer.
(2)
Application for license.— The importer shall forthwith file an
application on form TG— 17 with the assay office at New York or the mint
at San Francisco, whichever has been designated to receive a copy of the
entry.
(3 )
License.—
Upon receipt of the application and after making
such investigation of the case as it may deem advisable, the assay office
or mint to which the application is made, if satisfied that the gold
was imported for prompt reexport, shall issue to the applicant a
license on form TGL-17.
-19-
Sec, 34*
The Secretary of the Treasury, with the approval
of the President, shall issue licenses authorizing the acquisition,
transportation, melting or treating, importing, exporting,'or ear
marking or holding in custody for foreign or domestic account of
gold, for purposes other than those specified in articles III and
IV, and sections 32 and 33 of this article, which, in the judgment
of the Secretary of the Treasury, are not inconsistent with the
purposes of the Act, subject to the following provisions:
(1) Applications.,— Every application for a license under this
section shall be made on form TG-18 and shall be filed in duplicate
with the Federal Reserve Bank for the district in which the appli
cant resides or has his principal place of business.
Uoon receipt
of the application and after making such investigation of the case
as it may deem advisable, the Federal Reserve bank shall transmit
to the Secretary of the Treasury the original of the application,
together with any supplemental information it may deem appropriate.
The Federal Reserve bank shall retain the duplicate of the applica
tion for its records.
(2) Lie enses.— If the issuance of a license is approved, the
Federal Reserve bank which received and transmitted the application
will be advised by the Secretary of the Treasury and directed to
issue a license on form TG-L-13.
If a license is denied, the Federal
Reserve bank will be so advised and shall immediately notify the
applicant.
The decision of the Secretary of the Treasury with
respect to the granting or denying of a license shall be final.
If
a license is granted, the Federal Reserve bank shall thereupon note
upon the duplicate of the application therefor, the date of approval
and issuance and the amount of gold specified in such license.
-
(3)
20
-
Reports.— Within 7 days of the disposition of the gold ac
quired or held under a license issued under t Us section, or within 7
days of export, if such exportation is autnorized, the licensee shall
file a report in duplicate on form TGR—18 with the Federal Reserve
bank: through which the license was issued.
Upon receipt of such report,
the Federal Reserve bank shall transmit the original thereof to the
Secretary of the Treasury and retain the duplicate for its records.
ARTICLE VI.
Section 35.
TRANSITORY PROVISIONS
Licenses issued by the United States mints and assay
offices on Form TGL-4 and TGL-4A, shall until March 15, 1934, be
deemed licenses under section 23 hereof.
Such licenses on Form TGL-4
will authorize the licensee until March 15, 1934, to acquire—
(1)
gold held under License TGL-4 or TGL-4A or under
License TGL-12, TGL-13, or TGL-14 issued pursuant to these
regulations;
(2)
unmelted scrap gold from persons who acquired and hold
such gold lawfully; or
(3)
gold bullion from the Mint which issued his licenses;
and to hold, transport, melt and treat gold now lawfully held or so
acquired in amounts authorized by the license.
Such licenses on Form
TGL— 4A will authorize the licensee until March 15, 1934, to acquire
unmelted scrap gold:
(1)
held under License TGL-4A or under License TGL-12,
issued pursuant to these regulations; or
(2)
from persons who acquired and hold unmelted scrap gold
lawfully;
and to hold and transport unmelted scrap gold now lawfully held or so
acquired in amounts authorized by the license.
Sec. 36.
Licenses to hold gold in custody, issued hy direction
of the Secretary of the Treasury on forms TGL—1 and TGL—2 up to and
including March 15, 1934, shall he deemed licenses to hold such gold
in custody subject to the conditions prescribed therein, "unless
sooner terminated by the terms thereof.
(Signed)
H. MORG-ENTHAU, Jr.,
Secretary of the Treasury.
Approved:
(Signed)
ERAHKLIN D. ROOSEVELT,
The White House,
January 30, 1934.
January 31, 1934
IMMEDIATE RELEASE
STATEMENT POE THE PEESS
1. Acting under the powers granted by Title 3 of the act
approved May 12, 1933, (Thomas .Amendment to the Farm Eelief Act)
the President today issued a proclamation fixing the weight of
the gold dollar at 15-5/21 grains nine-tenths fine. This is
59.06 plus per cent of the former weight of 25-8/10 grains, ninetenths fine, as fixed by Section 1 of the Act of Congress of March
4, 1900. The new gold content of the dollar became effective
immediately on the signing of the proclamation by the President.
Under the Gold Reserve Act of 1934, signed by the President
Tuesday, January 30th, title to the entire stock of m&netary gold
in the United States, including the gold coin and gold bullion
heretofore held by the Federal Reserve Banks and the claim upon
gold.in the Treasury represented by gold certificates, is vested
in the United States Government and the “profit” from the reduction
of the gold content of the dollar, made effective by today*s
proclamation, accrues to the United States Treasury. Of this
“profit“ two billion dollars, under the terms of the Gold Reserve
Act and of today’s proclamation, constitutes a stabilization fund
under the direction of the Secretary of the Treasury. The balance
will be covered into the general fund of the Treasury.
Settlement for the gold coin, bullion and certificates taken
over from the Federal Reserve Banks on Tuesday upon the approval
of the act was made in the form of credits set up on the Treasury’s
books. This credit due the Federal Reserve Banks is to be paid in
the new form of gold certificates now in course of production by
the Bureau of Engraving and Printing. These certificates bear on
their face the wording:
“This is to certify that there is on deposit in
the Treasury of the United States of .America________ _
dollars in gold, payable to bearer on demand as authorized
by law,“
They also will carry the standard legal tender clause, which is as
follows:
“This certificate is a legal tender in the amount
thereof in payment of all debts and dues public and
private,”
The new gold certificates will be of the sanie size as other
currency in circulation and the only difference, other than the
changes in wording noted above, is that the backs of the new
certificates will as used.- to be done, be printed in yellow ink.
The certificates will be in denominations up to $100,000.
In his proclamation of today the President gives notice that
he reserves the right, by virtue of the authority vested in him,
to alter or modify thé present proclamation as the interest of the
United States may seen to require. The authority by later pro
clamations to accomplish other revaluations of the dollar in terms
of gold is contained in the gold reserve Act signed on Tuesday.
-
2
-
2« The Secretary of the Treasury, with the approval
of the President, issued a public announcement that beginning
February 1, 1934, he will buy through the Federal Reserve Bank
of New York as fiscal agent, for the account of the United
States, any and all gold delivered to any United States Mints
or the Assay Offices in New York or Seattle, at the rate of
$35.00 per fine troy ounce, less the usual Mint charges and
less one-fourth of one per cent for handling charges. Purchases,
however, are subject to compliance with the regulations issued
under the Gold Reserve Act of 1934.
3. The Secretary of the Treasury today promulgated
new regulations with respect to the purchase and sale of gold
by the Mints. Under these regulations the Mints are authorized
to purchase gold recovered from natural deposits in the United
States or any plane subject to its jurisdiction; unmelted
scrap gold, gold imported into the United States after January
30, 1934, and such other gold as may be authorized from time to
time by rulings of the Secretary of the Treasury. No gold, how
ever, may be purchased which has been held in noncompliance with
previous acts or orders, or noncorapliance with the Gold Reserve
Act of 1934, or these Regulations. Affidavits as to the source
from which the gold was obtained are required, except in the
case of nuggets or dust of less than five ounces, where a state
ment under oath will suffice. In the case of imported gold, the
Mints may purchase only that which has been in customs custody
after its arrival in the Continental United States.
The price to be paid for gold purchased by the Mints is to
be $35.00 per troy ounce of fine gold, less l/4 of 1 per cent
and less Mint charges. This price may be changed by the
Secretary of the Treasury at any time without notice.
The Mints are authorized to sell gold to persons licensed
to acquire it for use in the industries, professions, or arts,
but not to sell more than is required for a three months’ supply
for the purchaser. The price at which gold is to be sold by the
Mints will be $35.00 per troy ounce, plus l/4 of 1 per cent.
This price also may be changed by the Secretary of the Treasury
without notice.
TREASURY DEPARTMENT,
Office of the Secretary,
January 31, 1934.
AMENDMENT TO PROVISIONAL REGULATIONS
issued under the
GOLD RESERVE ACT OF 1934
Section 1.
The first paragraph of Section 2 of the Provisional
Regulations, issued January 30, 1934 under the Gold Reserve Act of
1934, is amended to read as follows:
"Articles 2, 5, 4, and 5 of these regulations refer
particularly to section 3 of the Act; and articles 6 and
7 refer particularly to sections 8 and 9, respectively,
the,eof."
Sen. 2.
Article VI of said Provisional Regulations is deleted
and there is inserted in such Regulations in lieu thereof the following
three Articles:
"ARTICLE VI.
"Section 35.
PURCHASE OF GOLD BY MINTS.
The mints, subject to the conditions specified
in these regulations, and the general regulations governing the
mints, are authorized to purchase;
{&} Gold recovered from natural deposits in the
United States or any place subject to the jurisdiction
thereof, and which shall not have entered into monetary
or industrial use;
(b)
Unmelted scrap gold;
(c)
Gold imported into the United States after January
50, 1934; and
(d)
Such other gold as may be authorized from time to
time by rulings of the Secretary of the Treasury;
Provided, however, that no gold shall be purchased by any mint
or assay office under the provisions of this article which, in
the opinion of the'mint, has been held at any time in rioncompliance with the act of March 9, 1933, any Executive orders
or orders of the Secretary of the Treasury issued thereunder,
or in noncompliance with any regulations prescribed under such
orders or licenses issued pursuant thereto or which, in the
opinion of the mint, has been acquired and held, transported,
melted or treated or held in custody in violation of the Act
or of regulations issued thereunder, including these regulations.
"Sec. 36.
Deposits .— Gold in the form of unmelted scrap
gold, coins, bars, kings, and buttons will be received in amounts
of not less than one troy ounce of fine gold.
Gold in the form
of retort sponge, lumps, nuggets, grains,, and dust, in their
native state Iree from earth and stone, or-nearly so, will be
received in amounts of not less than two troy ounces of fine
gold.
Deposits of gold shall not contain less than 200 parts
of gold in 1,000 by assay.
In the case of gold forwarded to a
mint by mail or express, a letter of transmittal shall be sent
with each package. When there is a material discrepancy between
the actual and invoice weights of a deposit, further action in
regard to it will be deferred pending communication with the
depositor.
do not conform to the requirements of sections 35 or. 56, or which
returned.to..fhe.person delivering the same at.his. risk; and. expense.
Any- deposit-of. gold which has been held at any time in noncompliance
with the Act of. March .9,, 1953, any Executive Orders or Orders of the
Secretary of the Treasury issued.thereunder, or in noncompliance with
any regulations prescribed under.such orders or licenses issued pur
suant thereto, or in noncompliance v/ith the Act and any regulations
issuod.thereunder, including these regulations, or any licenses
issued pursuant thereto or hereto may be held subject to the penalties
provided in Section 12 hereof, or Sections 2 or 3 of said Act of
March 9, 1933.' •
.
•
«Sec. 58. Gold recovered .from natural deposits in the United
States or any .place subject to the .jurisdiction thereof.— (l) The
mints shall not purchase any gold under clause (a) of section 35 unless
the deposit of such gold is accompanied by a properly executed affidavit
as follows:
«An affidavit on form TG-19 shall be filed with each delivery of
gold by persons who have recovered such gold by mining or panning in
the United States or any place subject to the jurisdiction thereof?
Provided, however, That such-persons delivering gold in the form of
nuggets or dust having an aggregate weight of not more than 5 ounces,
which they have recovered from mining or panning in the United States
or any place subject to the jurisdiction thereof, may accompany such
delivery with-full and complete information on form TG-19 without
the requirement of an oath.
«An affidavit on form TG-20 shall be filed with each delivery
of -gold•by'persons who have recovered such gold-from gold-bearing
materials in the regular course of their business of operating a
custom■mill smeltor,'or refinery.~<-
,
- 4 "An affidavit on fore TG-21 together with a statement also
under oath giving (a) the names of the persons from whom gold was
purchased; (h) amount and description of >oach lot of gold purchased;
(c) the location of -the nine or placer .deposit frou which each lot
was taken; and (d) the period within which such gold was taken fron
the nine or placer deposit, shall he filed with each such delivery
of gold hy persons who have purchased such gold directly fron the
persons^who have mined or panned such gold»
In addition such persons shall show that the gold was acquired, held,
'melted and treated,, and transported hy them in accordance with a
license issued pursuant to section 23 hereof, or that such acquisi
tion, holding, melting and treating, and transportation is permitted
under article II without necessity of- holding a license,
"Sec. 39.
Unmelted scrap gold. —
No deposit of unmelted
scrap gold shall ho accepted unless accompanied hy a properly
executed affidavit on form TG-22.
In addition, the depositors
of such gold shall establish to the satisfaction of the mint
that the gold was acquired, held, and transported hy them i n .
accordance with a license issued pursuant to these regulations.
"Sec. 40.
Imported gold. —
The mints are authorized fro pur
chase only such gold imported into the United States as has been
in customs custody throughout the period in which it shall have
been situated within the customs limits of the continental United
States, and then only subject to the following provisions:
M(l)
Notation upon entry.—
Upon formal entry into the United
States of any gold intended for sale to a mint under this article,
the importer shall declare to the collector of customs at the port
of entry where the gold is formally entered that the gold is
entered for such sale.
The collector shall make a notation of
this declaration upon the entry and forward a copy to the mint
designated hy the importer.
' ’ "(%);Upon the deposit of'the 'gold with the mint designated
by the importer, the importer shall' file an affidavit executed
iri duplicate on form TG-23.
’’Sec. 41. Records and reports.--Every'person delivering
gold'in accordance With this article, who is'required to be
licensed to hold gold, shall keep an exact record of all gold
mined, acquired, and all deliveries of gold made by such per
son as provided in section ¿6 hereof and shall file with
the mint which issued the license the reports required under
section 27 hereof’. The mint's snail not purchase gold under the
provisions of this article from any person who has failed to
comply with these regulations or the terms of his license.
"Sec. 42. Purchase price.— The mints shall pay for all gold
purchased by them in accordance with this article $>35.00 (less
one fourth of 1 percent) per troy ounce of fine gold, but shall
retain from such purchase price ¿in amount equal to all mint
charges. This price may be changed by the Secretary ox the
Treasury without notice other than by notice of such change
mailed or telegraphed to the mints.
..... "ARTICLE VII. SALE OF GOLD BY MBITS
"Section 43. Each mint is authorised to sell gold to persons
licensed by it to acquire such gold for use in industry, profession,
or art: Provided, however-, That no mint may sell gold to any person
in an amount which, in the opinion of such mint, exceeds the amount
actually required by such licensee for a period of 3 months. Prior
- 4
.
to the sale of any .gold under this article, the ,mint shall require
the purchaser to execute and file in duplicate an affidavit on forn
TG-24, or, if such purchaser is in the business of furnishing gold
for use. in .'industries, professions, and arts, on form TG-25.
The
nints are authorized to refuse to sell gold in amounts less than
25 ounces, and shall not sell gold under the provisions of this
article to any person who has failed to comply with these regula
tions or the terms of his license.
"Sec. 44.
f&lo price.— The mints shall charge for all gold
sold under this article $35.00 (plus one fourth of 1 percent) per
troy ounce of fine gold.
This price may be changed by the
Secretary of the Treasury without notice other than by notice
of such change mailed or telegraphed to the mints.
"ARTICLE VIII, TRANSITORY PROVISIONS
"Section 45.
Licenses issued by the United States mints and
assay offices on form TGL-4 and TGL-4A, shall until March 15, 1934,
be deemed licenses under section 23 hereof.
Such licenses on form
TGL-4 will authorize the licensee until March 15, 1934, to acquire—
(1)
under
gold held under License TGL-4 or TGL-4A or
License TGL-12, TGL-13, or TGL-14 issued pursuant
to these regulations;
(2 ) unmelted scrap gold from persons who acquired
and hold such gold lawfully; or
(3)
license;
gold bullion from the mint which issued his
n
I
and to hold, transport, melt and treat, gold now lawfully held
or so acquired in amounts authorized by the license. Such licenses
on Form TGL-4A will authorise the licensee until March 15, 1954, to
acquire and hold unmelted scrap gold:
(1) held under License TGL-4A or under License
TGL--12, issued pursuant to these regulations; or
(2) from persons who acquired and hold unmelted
scrap gold lawfully;
and to hold and transport unmelted scrap gold now lawfully held
or so acquired in amounts authorized by the license.
"Sec. 46. Licenses to hold gold in custody, issued by
direction of the Secretary of the Treasury on forms TGL'-l and
TGL-2 up to and including March 15, 1934, shall be deemed
licenses to hold such gold in custody subject to the conditions
prescribed therein, unless sooner terminated by the terms therco.i •1
Section 5. The foregoing amendments to the Provisional Regulations
issued January" 50, 1S54 under the Gold Reserve Act of 1954, deemed neces
sary and proper by the Secretary of the Treasury to carry out the pur
poses of the Gold Reserve Act of 1954, approved January 30, 19o4, are
issued by the Secretary of the Treasury, with the approval of 'the
President, under authority of said Act.
HENRY MORGENTHAU, JR.
Secretary of the Treasury
APPROVED:
FRANKLIN D. ROOSEVELT
THE VRITE HOUSE
January 51, 1954.
TREASURY DEPARTMENT
WASHINGTON
MEMORANDUM FOR THE PRESS
For Immediate Release
February 1, 1934.
Amplifying his statement issued yesterday, (Wednesday, January 31)
with respect to the purchase of imported gold "by the Federal Reserve Bank
as fiscal agent of the United States and his regulations of the same date,
with respect to purchases of imported gold "by the Mints* the Secretary of
the Treasury today made public the following announcement:
’’Beginning Thursday, February 1, 1934, and "until further
notice, I will "buy imported fine gold bars through the Federal
Reserve Bank of New York as fiscal agent of the United States;
and other gold, foreign or domestic, through any United States
Mint or the United States Assay Offices at New York or Seattle,
both at the following rate and upon the following terms and con
ditions deemed by me most advantageous to the public interest:
’’Purchases will be made at the rate of $35.00 per fine troy
ounce, less the usual mint charges and less one— quarter of one
per cent for handling charges, all subject to compliance with
the Regulations issued under the Gold Reserve Act of 1934.”
It was explained that the phrase ’’fine gold bars” means gold bars of
a fineness of .899 or finer, such as are ordinarily used in the settlement
of international balances, carrying a recognized stamp indicating the weight
and degree of fineness.
The mints will purchase imported gold in other conn
û t ion, such as unrefined gold and gold in other forms than in stamped bars,
along with the domestic gold specified in Section 35 of the regulations issued
yesterday.
Regulations as to hoarded gold are unchanged.
EOR RELEASE, MORNING- PAPERS,
Thursday, February 1, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for two series of Treasury bills to the aggregate amount of
$175,000,000, or thereabouts.
One series will be 91-day bills and the
other series will be 182-day bills.
Both series will be sold on a dis
count basis to the highest bidders.
Tenders will be received at tiie
Federal reserve banks, or the branches thereof, up to two o’clock p. m.,
Eastern Standard time, on Monday, February 5, 1934.
Tenders will not be
received at the Treasury Department, Washington.
The Treasury bills will, as stated, be issued in two series,
$125,000,000, or thereabouts, maturing on May 9, 1934, and $50,000,000,
or thereabouts, maturing on August 8, 1934; both series to be dated
February 7, 1934.
Bidders will be required to specify the particular
series for which each tender is made.
The face amount of the bills of
each series will be payable without interest on their respective maturity
dates.
The bills will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes wnich will be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
-
2
-
expressed on the basis of 100, with, not more than t.iree decimal
places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately
a fte r
the closing hour for receipt of tenders on
February 5, 1934, all tenders received at the Federal reserve oanks or
branches thereof up to the closing hour will be opened and puolic
announcement of the acceptable prices for each series will follow as
soon as possible thereafter, probably on the following morning.
The
Secretary of the Treasury expressly reserves.the right to reject any
or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final. _Any
tender which does not specifically refer to a particular series will
be sub.iect to rejection.
T^ose submitting tenders will be advised of
the acceptance or rejection thereof.
Payment at the price offered for
Treasury bills allotted must be made at the Federal reserve banks in
cash or otjj.er immediately available funds on February 7, 1934, provided,
however, any qualified depositary will be permitted to make payment by
credit for Treasury bills maturing August 8, 1934, allotted to it for
itself and its customers up ,to any amount for w^ich it shall be
qualified in excess of existing deposits when so notified by the Federal
reserve bank of its district.
3
The Treasury bills will be exempt, as to principal and
interest, and any gain from the sale or other disposition thereof
will also be exempt, from all taxation, except estate and inheritance
taxes.
No loss from the sale or other disposition of the Treasury
bills shall be allowed as a deduction, or otherwise recognized, for
the purposes of any tax now or hereafter imposed by the United States
or any of its possessions.
Treasury Department Circular No,. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal reserve bank or branch thereof.
TREASURY DEPARTMENT
WASHINGTON
MEMORANDUM FOR THE PRESS
For Immediate Release
February 2, 1934
Newspapers of last night and this morning carry re
ports of what was assumed to he a ’’joker11 in the liquor taxing
act of 1934, which would make the buyer of distilled spirits,
the container of which does not bear an Internal Revenue strip
stamp, equally liable with the seller to penalties, which might
be a fine not exceeding $1,000 or imprisonment not exceeding
five years.
The assumption that there is such a joker in the act
was based on the fact that the Senate eliminated from Section
210, Title II in two places the words ’’for sale”.
Those who
hav£ hssumed that this made the buyer liable have evidently
failed to read the remainder of the section which contains these
words:
’’The provisions of this Title shall not apply to
«. **** (f) Distilled spirits not intended for sale
or for use in the manufacture or production of any
article intended for sale,”
It is thus apparent that the buyer of distilled alcoholic liquors
in unstamped bottles is not liable under this act unless he buys
for the purpose of reselling.
TREASURY DEPARTMENT
WASHINGTON
Memorandum for the Press
February 5, 1934*
Silver received "by the United States Mints under the President*s
proclamation of December 21, 1933, was 117,554.86 ounces for the week
ended February 2.
Of this amount 117,383 ounces was received by the
Denver Mint and the balance of 171*86 ounces by the San Francisco Mint,
These receipts compare with a total of 94,921 ounces received
for the week ended January 26 and receipt's up to and including January
18 of 2,181 ounces.
Total receipts from the date of the proclamation
up to and including February 2 are 214,657 ounces.
Reports of the Federal Reserve Banks to the close of business
February 3 show that from January 27 to February 3, inclusive, deposits
of gold coin and gold certificates received under the Secretary*s order
of December 28, 1933, as amended, were:
Gold coin, $5,402,343.54; gold
certificates, $5,960,010; total, $11,362,352.54.
date under the order are:
$35,410,480$
Total receipts to
Gold coin, $23,365,630.26; gold certificates
total receipts of coin and certificates, $58,776,110.26.
TREASURY DEPARTMENT
WASHINGTON
Memorandum for the Press
February 5, 1934
Total purchases of Government securities by
the Treasury for investment accounts from January 30
through February 5 were $7,900,000.
I ,: 0
TREASURY DEPARTMENT
WASHINGTON
Memorandum for the Press
February 7, 1934,
FOR IMMEDIATE RELEASE
The purchaser of "bottled whisky will he able to identify it on and after
February 10 as a legal product upon which the tax has been paid, it was pointed
out at the Treasury Department today.
Beginning on that date, each bottle
will be required to bear a red strip-stamp passing over the mouth of the bottle.
Dealers who have distilled spirits in stock on February 10 will have ten days
in which to obtain the necessary stamps to affix to the bottles.
The stamp
will bear the name of the distiller,wholssaler, or importer, will state that
the tax has been paid to the Government, and will indicate the quantity of
liquor contained in the bottle,
Whisky will no longer be sold in bulk packages, under the Liquor Taxing
Act of 1934 and regulations issued by the Bureau of Internal Revenue, except
for certain specific purposes, not connected for the most part with retail
trade.
All whisky which is purchased for resale to the consumer must be in
bottles and must bear the red strip-stamp.
The green strip-stamp now in use for bottled-in—bond whisky and the blue
strip—stamp now used on whisky intended for export will be continued.
The purpose of the new regulation is to notify the public that bottled
liquor which does not bear a stamp is probably illegally produced or the tax
has hot been paid.
The stamps denote quantity in the container and are for a
quart, a fifth, a pint, half-pint, and less than half-pint.
Each stamp costs
one cent, except those for less than half—pint containers, which are one—quarter
cent each.
The stamps are engraved and printed by the Bureau of Printing and Engraving,
and not easily counterfeited.
of spurious stamps.
Every precaution is being taken against the use
Tile strip— stamp mast he broken when the cork is pulled, and mast he
entirely effaced when the hottle is empty.
If the stamp is broken at
the time of purchase, the hottle may he a refill.
Heavy penalties are provided for the sale of unstamped whisky, and
for failure to destroy the stamp* when the hottle is opened#
TREASURY DEPARTMENT
FOR RELEASE, MORNING PAPERS,
Wednesday, February 7, 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for two series of Treasury bills to the aggregate amount of
$150,000,000^, or thereabouts*
One series will be 91-day bills and the
other series will be 182-day bills.
Both series will be sold on a dis
count basis to the nighest bidders.
Tenders will be received at the
Federal Reserve Banks* or the branches thereof, up to two o'clock p. m. ,
Eastern Standard time, on Friday, February 9, 1934*
Tenders will not
be received at the Treasury Department, Washington*
The Treasury bills will, as stated, be issued in two series,
$75,000,000, or thereabouts, maturing on May 16, 1934,
and $75,000,000,
or thereabouts, maturing on August 15, 1934; both series to be dated
February 14, 1934.
Bidders will be required to specify the particular
series for which each tender is made.
The face.amount of the bills of
each series will be payable without interest on their respective maturity
dates.
The bills will be issued in bearer fora only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and for
warded in the special envelopes wnich will be supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g. , 99.125.
Fractions must not be used.
- 2 Tenders will "be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
February 9, 1934, all tenders received at the Federal Reserve Banks or
branches thereof up to the closing hour will be opened and public
announcement of the acceptable prices for each series will follow as
soon as possible thereafter, probably on the following morning.
The
Secretary of the Treasury expressly reserves the right to reject any or
all tenders or parts of tenders, and to allot less than the amount applied
for, and his action in any such respect shall be final.
Any tender which
does not specifically refer to a particular series will be sub.iect to
rejection.
Those submitting tenders will be advised of the acceptance
or rejection thereof.
Payment at the price offered for Treasury bills
allotted must be made at the Federal Reserve Banks in cash or other
immediately available funds on February 14, 1934, provided, however, any
qualified depositary will be permitted to make payment by credit for
Treasury bills maturing August 15, 1934, 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 Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
- 3 exempt, from all taxation, except estate and inheritance taxes.
No
loss from the sale or other disposition of the Treasury bills shall be
allowed as a deduction, or otherwise recognized, for the purposes of
any tax now or hereafter imposed by the United States or any of its
possessions.
V
'
,
Treasury Department Circular No* 418> as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue*
Copies of the circular may be obtained from
any federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS
February 12, 1934
Silver received by the United States Mints under the President1s
proclamation of December 21, 1933, amounted, for the week ending February
9, to 375,995,83 fine ounces.
Of this amount the San Francisco Mint
received 311,439,83 fine ounces and the Denver Mint 64,556 fine ounces.
Receipts for the previous week, ended February 2, Were 117,554,86 fine
ounces and total receipts up to and including February 9 have been
590,652,83 fine ounces.
Reports of the Federal Reserve Banks to the close of business
February 10 show that
from
February 3 to February 10, inclusive,
there had been deposited under the Secretary1 s order of December 28,
1933, gold coin to the amount of $1,747,666; gold certificates to the
amount of $4,559,270, or a total deposit of coin and certificates for
the week of $6,307,036,
Receipts of gold coin and certificates by the Federal Reserve
Banks under the Secretary* s order from December 28, the date of the
order, up to and including February 10 were gold coin, $25,113,296,23
and gold certificates, $39,969,750,
In addition there have been deposited direct with the Treasurer
of the United States since December 28, gold coin, $229,044 and gold
certificates, $1,141,500,
There have also been deposited in the
New York Assay Office, under the same order, gold bars to the value of
$200,572,69,
Including all items, total receipts of gold coin, gold certificates
and gold bars, under the Secretary*s order of December 28, 1933, have
been $66,654,162,92,
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS
February 12, 1934
Total purchases of Government securities by the Treasury
for Government investment accounts' through February 6 and in*cluding deliveries scheduled for February 13, were $22,528,000.
In addition to the above amount purchased in the New York
market the Federal Deposit Insurance Corporation on February 9
purchased $638,400 of Government bonds, which had been held by
the Treasurer of the United States as collateral security for
postal savings deposits.
r e l e a .s e , m o r n i n g p a p e r s ,
Friday, February 16, 1934.
TREASURY DEPARTMENT
f m
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $75,000,000, or thereabouts.
They will be 91-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received at the Federal reserve banks,
or the branches thereof, up to two o'clock p. m . , Eastern Standard time,
on Monday, February 19, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated February 21, 1934, and will
mature on May 23, 1934, and on the maturity date the face amount will
be payable without interest.
They will be issued in bearer form only,
and in amounts or denominations of $1,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value) .
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g., 99,125,
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must be accompanied by a
deoosit of 10 per cent of the face amount of Treasury bills applied for,
U
2
-
■unless the tenders arc accompanied by an oxpress guaranty of payment
by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
February 19, 1934, all tenders received at the Fedoral reserve banks
or branches thereof up to the closing hour will be opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respoct shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at
the Federal reserve banks in cash or other immediately available funds
on February 21, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal reserve bank or branch tnereof.
TREASURY DEPARTMENT
WASHINGTON
MEMORANDUM FOR THE PRESS
February 19, 1934.
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending February 16 ...............
Received up to February 9 .......... ..
Total receipts to February 16 .......
.232,630
590.652.83
823.282.83
ounces
«
»
GOLD RECEIVED PY FEDERAL RESERVE BANKS M D THE
TREASURE R 1S OFFICE.
(Under the Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ending February 1 7 .....
Received previously.........
Total to February 17 ......
Gold C o i n __
$
577,260.58
25.1113. 296,23
25,690,556.81
Gold Certificates
$2,031,430
39.969,750
42,001,180
Received by Treasurer's Office:
Week ending February 1 7 .....
Received previously .........
Total to February 1 7 ......
$
$
4,700
229.044
233,744
68,000
1.141.500
1.209.500
Note:
In addition gold bars to the amount of $200,572.69 were de
posited with the New York Assay Office, as previously noted.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
For week ending February 17:
Federal Deposit Insurance ............
Other accounts .......................
oooOooo
$ 5,800,000
.1,289.000
7,089,000
TREASURY B E P A M M T
WASHINGTON
MEMORAUDUM POE THE PRESS.
(immediate Release)
FEBRUARY 21,1934
The Secretary of the Treasury today (February 21,1934) sent a
telegram to the Governor of the Federal Reserve Bank of New York and
to the superintendents of the mints and assay offices advising them
that the price to he paid for gold offered for sale is that prevailing
on the day of the deposit of the gold.
The telegram explains that the day of the deposit of the gold
is the day when the gold and the required accompanying papers (other
than the certificate of the Collector of Customs) are received in
proper order.
Unavoidable delays in settlement with the mints and the assay
offices caused by receipt of heavy shipments of gold are said to be
causing uncertainty on the part of some .shippers of gold.
The object
of the telegrams sent by the Secretary today is to clear up any uncer
tainty that may exist.
0O 0- 0O 0
FOR RELEA.SE, MORNING PAPERS,
Friday, February 23, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury "bills to the amount of $75,000,000, or thereabouts.
They will be 182-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received
at the Federal reserve banks,
or the branches thereof, up to two o’clock
p. m., Eastern Standard time,
on Monday, February 26, 1934.
Tenders will not be received at the
Tr ea sury Depar tmen t, Wa shing ton.
The Treasury bills will be dated February 28, 1934, and will
mature on August 29, 1934, and on the maturity date the face amount
will be payable without interest.
They will be issued in bearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made
on the printed forms and
forwarded in the special envelopes which will
be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Then tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g., 99.125.
Fractions must pot be used.
Tenders will be aegepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from.others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
-
2
-
unless the tenders are accompanied by an express guaranty of payment
by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
February 26, 1934, all tenders received at the Federal reserve banks
or branches thereof up to the closing hour will be opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and his
action in any such respect shall be final.
These submitting tenders will
be advised of the acceptance or rejection thereof.
Payment at the price
offered for Treasury bills allotted must be made at the Federal reserve
banks in cash or other immediately available funds on February 28, 1934,
provided, however, any qualified depositary will be permitted to make pay
ment by credit for Treasury bills allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess of
existing deposits when so notified by the Federal reserve bank of its
district.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
No loss from the
sale or other disposition of the Treasury bills sliall be- allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or here
after imposed by the t&iited States or any of its possessions.
Treasury Department Circular No. 418, as amended, 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 thereof.
TREASURY DEPARTMENT
FOR RELEASE, MORNING PAPERS,
Friday, March 2 , 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $100,000,000, or thereabouts.
They will be 182-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received
at the Federal Reserve Banks,
or the branches thereof, up to two o’clock
p. m., Eastern Standard time,
on Monday, March 5, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated March 7, 1934, and will
mature on September 5, 1934, and on the maturity date the face amount
will be payable without interest.
They will be issued in bearer form
only, and in amounts or denominations of $1 ,000 , $1 0 ,000 , $100 ,000 ,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made
on the printed forms and
forwarded in the special envelopes which will
be supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $? .000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100 , with not more than three decimal places,
e. g. , 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company.
-
2
-
Immediately after the closing hour for receipt of tenders on
March 5, 1934, all tenders received at the Federal Reserve Banks or
branches thereof up to the closing hour will be opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect sla.ll be final.
Those submitting tenders
will be advised of the acceptance or rejection thereof.
Payment at the
price offered for Treasury bills allotted must be made at the Federal
Reserve Banks in cash or other immediately available funds on March 7,
1934, provided, however, any qualified dexjositary will be permitted to
make payment by credit for Treasury bills allotted to it for itself and
its customers up to any amount for which it shall be qualified in excess
of existing deposits when so notified by the Federal Reserve Bank of its
district.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from tne sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from any
/
Federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM POR THE PRESS
March 5, 1934.
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending March 2 ........................
271,800.00 ounces
Received up to February 23
1,145,910.14
**
Total receipts to March 2 ................ 1,417,710,14
»
GOLD RECEIVED BY FEDERAL RESERVE RANKS AND THE
TREASURERS OFFICE*
(Under the Secretary*s Order of December 28, 1933)
Received by Federal Reserve Banks:
Gold Coin
Week ending March 2 ....... . $
311,341.14
Received previously.......... 26,051,522.29
Total to March 2
.... . $26,362,863.43
Gold Certificates
$1,526,840.
43,798,630,
$45,325,470,
Received by Treasurer*s Office:
Week ending March 2 . . ..... . $
Received previously .,..•••••
Total to March 2 .......
$
2,000.
236,749.
238,749.
$
33,100.
1,244,500.
$1,277,600.
Note: In addition gold bars to tho amount of $200,572.69 were de
posited with the New York Assay Office, as previously noted.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
For week ending March 3:
Federal Deposit Insurance ...............» $ 7,300,000
Other accounts .......................
2,908,100
$10,208,100
f jji- s
STATEMENT OF SECRETARY OF THE TREASURY TO
THE COMMITTEE ON FINANCE OF THE SENATE
The Treasury Department appreciates the opportunity granted "by the
Committee on Finance to present its views with respect to the revenue
hill now pending before the Committee«
I shall attempt to state at this
time the general attitude of the Treasury, leaving the discussion of the
specific provisions of the hill for later consideration«
In his Budget Message, the President stated that he expected the budget
estimates of receipts to be increased by an additional $150,000,000 to be
obtained from the revision of the income tax, estate tax, and miscellaneous
tax laws*
The President did not at that time recommend the imposition of any
specific new taxes, or the elimination of any taxes now in force«
The budget
estimate is, however, framed on the basis that any revenue revision should
provide for the amount of receipts estimated to be obtained from the existing
tax laws, plus at least $150,000,000 additional.
It is estimated by the
Committee on Ways and Means that the revenue bill now pending before this
Committee will produce approximately $258,000,000 additional revenue in a full
year of operation (including $85,000,000 to be obtained from changes in the
administration of the depreciation allowances)«
It should be noted, however,
that most of this additional revenue will not be collected until 1935; and
that revenue estimates in respect to technical changes are difficult to make,
since they depend upon a number of uncertain factors, the most important of
which is future business profits.
It is therefore the best judgment of the
Treasury that the bill finally adopted should provide for at least as much
revenue as it is estimated the pending bill will yield.
The bill was prepared as the result of the work of a Subcommittee of
L the Committee on Ways and Means of the House, which was appointed to
investigate methods of preventing the evasion and avoidance of the internal
revenue laws, to consider the improvement of such laws, and to study possible
new sources of revenue.
The Subcommittee presented a Preliminary Report to
the Committee on Ways and Means on December 4, 1933.
At the request of the
Committee, the Treasury set forth its view's with respect to the proposed
amendments in a Statement made on December 15, 1933. The Treasury expressed
.
its hearty agreement with the objective of the Subcommittee as stated in its
I
Preliminary Report, namely, to prevent avoidance of the income tax laws, and
thereby to increase the revenue therefrom; but indicated that, on the basis
of administrative experience, it would be desirable to modify some of the
specific recommendations.
The Treasury also recommended some further changes
in the law, which, in the opinion of the Department, would improve its
administration and prevent evasion.
At the request of the Committee, repre
sentatives of the Treasury participated in the subsequent discussions of
the various recommendations in executive session.
The bill was thereafter
drawn to embody the charges agreed upon by the Committee,
The bill does not alter the general framework of the federal tax
system.
The only new taxes are those imposed upon the first domestic
processing of cocoanut and sesame oils; and upon the production and refining
of crude petroleum.
It is proposed to repeal the check tax as of January 1,
1935 instead of July 1, 1935; and to repeal entirely the taxes on fruit
juices.
In other respects, the existing taxes are left in effect, with
amendments designed to assist in their better enforcement.
«#■
-3
The income tax rate structure is considerably simplified,, and the yield
increased by heavier impositions upon dividend and partially tax-exempt income,,
with some reduction in the taxes applicable to salaried incomes in the lower
brackets.
Viewing the proposed changes as a whole,, I believe that the bill will
yield the additional revenue which the President desires, primarily by the
elimination of the serious loopholes which our experience has shown to
exist in the present income tax law.
Ho taxpayer can legitimately complain
of these changes, since they result in a more equitable distribution of the
tax burden over those persons who are best able to sustain it.
The Treasury
Department therefore approves the pending bill as a whole-,, with the exception
of some minor matters, which the Department will be glad to discuss with the
Coirmittee at its convenience.
March 8 , 1934,
STATEMENT OF THE SECRETARY OF THE TREASURY BEFORE THE
JUDICIARY COMMITTEE OF THE HOUSE OF REPRESENTATIVES
ON THE SUBJECT OF TAX EXEMPT SECURITIES*
The Treasury Department favors as a permanent policy the elimination
of the exemptions from Federal income tax now accorded to the interest on
Federal, state, and municipal securities, in so far as future issues of such
securities are concerned*
I consider it very important that when the exemption is eliminated it
should "be eliminated not only in respect to future issues of Federal
securities, hut in respect to future issues of state and municipal securi—
ties as well*
The enactment of legislation requiring Federal obligations
to he issued in the future on a fully taxable basis, in competition with
wholly tax-exempt securities originating elsewhere, would be likely to
react unfavorably on the market for Federal securities, to increase the
cost of the Governments borrowing, and to complicate our financing
operations*
I am advised that a constitutional amendment would be required to
enable the Federal Government to tax the interest on state and municipal
securities*
In my judgment, soch an amendment should be drawn on a
reciprocal basisj tho states should be permittodl to tax the ipcome from
Federal
securities, and the Federal Government to tax the income from
state and municipal securities*
I favor such an amendment*
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS
March 12, ,1934
RECEIPTS OE SILVER BY THE MINTS :
(Under Executive Order of December 21, 1933)
Week ended March 9 * » . . • * • • •
126,604.00 ounces
Received up to March 2
1 ,417.,710..14
”
Total receipts to March 9 ......... 1,544,314,14
M
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE,
TREASURER1 S OFFICE:
(Under the Secretary’s Order of December 28, 1933)
Received by federal Reserve Banks:
Gold Coin
Geld,Certificates
103,424.88
March 3 to 7, inclusive <.••••• $
26,362,863,43
Received previously.*
$26,466,288.31
Total to March 7
$ 1,372,820
45,325,470
$46,698,290
Received by Treasurer’s Office:
March 3 to 7, inclusive •*•••• $
Received previously .•••••••••
$
238,749.00
26,200
1,277,600
Total to March 7 *,••••.«• $
238,749.00
$ 1,303,800
Note: In addition gold bars to the amount of $200,572.69 depose
ited T/ith the New York Assay Office, as previously noted*
PURCHASES Of GOVERNMENT SECURITIES EOR INVESTMENT ACCOUNTS,:
for week ended March 10;
a
on
Federal Deposit Insurance.*,....... . $ 5,600,000
Other accounts.*«•••.«•• • • • • • 1,300,000
Total to March 10 .............. $ 6.9Q0jU00
TREASURY DEPARTMENT
EOR RELEASE, MORNING- PAPERS,
Friday, March IS, 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice tnat tenders are
invited for Treasury bills to the amount of $100,000,000, or thereabouts.
They will be 91-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received at txie Federal reserve banks,
or the branches thereof* up to two o’clock p. m., Eastern Standard time,
on Monday, March 19, 1934.
Tenders will not be received at the
Treasury Department, Washington.
The Treasury bills will be dated, March 21, 1934, and will
mature on June 20, 1934, and on the maturity date the face amount
will be payable without interest.
They will be issued in bearer form
only, and in amounts or denominations of $1 ,000 , $1 0 ,000 , $100 ,000 ,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by the Federal
reserve banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1 ,000 .
The price offered must be
expressed on the basis of 100 , with not more than t*.ree decimal places,
e. g. , 99,125.
Fractions: must not be used.
Tenders will be accepted without Cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
T@nders from others must be accompanied by a
deposit of 10 per cent of the face amount of Treasury bills applied for,
unless the tenders are accompanied by an express guaranty of payment by
-
2
-
an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
March 19, 1934, all tenders received at the Federal reserve hanks or
-branches thereof no to the closing hour will he opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of tiie
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied' for, and
his action in any such respect shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at
the Federal reserve banks in cash or other immediately available funds
on March 21, 1934.
Tine Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bill’s shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and tnis
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal reserve bank or branch thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS*
March 16, 1934*
Secretary Morgenthau today issued the following statement!
The appointment of Admiral C* J» Peoples to membership on
the Special Board for Public Works, in plade of Assistant Secretary
L. W, Robert, Jr.* represents merely the ddmpletion of routine
changes in carrying out the Executive Order creating the Procurement
Division in the Treasury Department and the transfer of public building
activities to that division.
It does not reflect in any way on
Assistant Secretary Robert or affect his standing in the Treasury De
partment in any respect.
TREASURY DEPARTMENT
Washington
March 19, 1934,
MEMORANDUM FOR THE PRESS
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending March 16, 1934:
Philadelphia
Denver
San Francisco ..........
Total foi? the week
Received previously
— 131,593
fine, ounces
701,215.51
11
u
832,808.51 ounces
1,544,314.14
»
2,377,122«, 65
Total receipts to March 16
RECEIPTS OP GOLD BY THE MINTS AND ASSAY OFFICES:
Week ending March 16, 1934.
Secondary
Imports_______
$ 425,051„90
------Philadelphia .... $
231,028,21
831,446.00
San Francisco ••••
179,252.00
Denver
New York ........
33,692,000.00 4,130,000.00
27,028,76
50,501.23
Seattle ..........
15,112,93
8,049.01
New Orleans ......
$
New Domestic
356.85
1,877,238r55
354,160.00
710,000.00
189,660,29
$
$34,581,996.24 $5,007,473.80
3,131,415.69
RECAPITULATION
Imports
$34,581,996.24
Secondary
$ 5,007,473.80
Ne?/ Domestic .••••• $ 3,131,415.69
Total ............
$42,720,885.73
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Gold Coin
Received by Federal Reserve Banks:
$
2 0 9 ,1b8*. 57
Week ended March 14
2 6 ,4 6 6 s 2 8 8 .3 1
Received previously ....
Total to March 14
$26,675,- ’6,88
Received by Treasurer’s Office:
yeek ended March 14 ••<... ... • $
Received previously
$
Total to March 14 ..........
Gold Certifloates
$ l",3.53a750
4 6 ,5 9 8 ,2 9 0
$47,851,040
1,700.00
238,749.00
$
37,200
1,303,800
240,449„00
$ 1,341,000
NOTE; In addition, gold bars to the amount of $200,572.69 deposited with the
New York Assay Office, as previously noted.
PURCHASES OF ,GOVEEUPÆENT SECURITIES FOR INVESTMENT ACCOUNTS!
For week ended March 17:
Federal Deposit Insurance Corporation....
Other accounts
Total ta March 17 ••••••.
$ 5,267,000
.„..3,642,000
$ 7,909,000
EOS. RELEASE, MORNING PAPERS,
Friday, March 23, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited
for two series of Treasury "bills to the aggregate amount of $100,000,000, or
thereabouts.
182-day bills.
bidders.
One series will be 91— day bills and the other series will be
Both series will be sold on a discount basis to the highest
Tenders will be received at the Federal Reserve Banks, or the
branches thereof, up to two o'clock p*m,, Eastern Standard time, on Monday,
March 26, 1934,
Tenders will not be received at the Treasury Department,
Washington,
The Treasury bills will, as stated, be issued in two series, $50,000,000,
or thereabouts, maturing on June 27, 1934, and $50,000,000, or thereabouts,
maturing on September 26, 1934; both series to be dated March 28, 1934,
Bidders
will be required to specify the particular series for which each tender is made.
The face amount of the bills of each series will be payable without interest
on their respective maturity dates.
The bills will be issued in bearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000, $500,000,
and $1 ,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
tender mast be in multiples of $1,000.
Each
The price offered mast be expressed
on the basis of 100, with not more than three decimal places, e, g,, 99,125,
Fractions must not be used.
~ 2 ~
Tenders will "be accepted without cash deposit from incorporated hanks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others
must be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour for receipt of tenders on March 26,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices for each series will follow as soon as possible thereafter, probably on
the following morning.
The Secretary of the Treasury expressly reserves the
right to reject any or all tenders or parts of tenders, and to allot less than
the amount applied for, and his action in any such respect shall be final.
Any
tender which does not specifically refer to a particular series will be subject
to rejection.
Those subris&tting tenders will be advised of the acceptance or
rejection thereof.
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately available
funds on March 28, 1934, provided, however, any qualified depositary will be
permitted to make payment by credit for Treasury bills maturing September 26,
1934, allotted to it for itself and its customers up to any amount for which it
shall bo qualified in excess of existing deposits when so notified by the
Federal reserve bank of its district.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes.
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or othereise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No* 418, as amended, 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 thereof*
STATEMENT OF MR, TOM K. SMITH, ASSISTANT TO THE
SECRETARY OF THE TREASURY, BEFORE THE BANKING
AND CURRENCY COMMITTEE OF THE SENATE,
J
,
IX 3j J J
The Nation has experienced undoubtedly the most severe depression
in its history.
There seems to he no doubt that excessive speculation
and harmful practices that developed in the securities market «—
ticularly on the stock exchanges —
par
were among the major causes of
economic disaster.
We have started on our way to recovery.
It is of supreme importance
that a repetition of old mistakes should not wreck our efforts to bring
about a broad and lasting economic improvement.
The time is appropriate
for legislation to remedy stock exchange abuses and to place stock market
activities under reasonable and adequate regulation in the public interest.
Those who wish to invest their savings, and industries having legitimate
need for capital funds, must alike be protected from the evils of wild
and unchecked speculation.
The general purpose of the National Securities Exchange Act of 1934
is to attain these ends.
Its major objectives are:
(1) To establish Federal supervision over securities exchanges;
(2) To prevent manipulation of security prices and to protect the
public against unfair practices;
(3) To prevent excessive fluctuations in security prices due to
speculative influences;
(4) To discourage the use of credit in the financing of excessive
speculation in securities.
With these general objectives the Treasury is in full accord.
The Treasury has been consulted on certain parts of the bill which
are of direct concern to it.
Within the limited time available, these
have been studied to determine whether they would have an unduly adverse
~ 2 -
effect on the marketing of government securities or on the national
financial structure*
Changes which were regarded as necessary within
the framework of a general regulatory measure were suggested to the
counsel for the Committees of the Senate and House and were, in all
material respects, incorporated in the "bill*
The Treasury has not considered those provisions of the "bill which
relate to the strictly technical matters of stock exchange practice and
regulation.
Failure to comment on those provisions does not mean that
the Treasury is opposed to them, hut only that they have not "been the
objects of our study*
The Treasury is, therefore, not in a position
to express an opinion on them.
TREASURY DEPARTMENT
Washington
jCESMORANDUM TOR TEE PRESS
March 26, 1934.
RECEIPTS OF SILVER BY THE MINTS:
(p'nder Executive Order of December 21, 1933)
Week ending March 23, 1934:
San Francisco ....... 367,553.24 fine ounces
Denver ..............
2.291.00
"
H
Total for the week ........ ...................
Received previously ...........................
Total receipts to March 2 3 ........ *..........
369,844.24 ounces
2.377.122.65
»
2.746.9 66 .89
»
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
New
Week ending March 23, 1934:
Imnort s___________ Secondary____________ Domestic
Philadelphia......... ..$
....
$
983,332.16
$
717.22
San Francisco .........
1,127.36
99,839.44
632,094.19
Denver .........
63,729.00
88,283.00
475,850.00
New York ............. 29,200,300.00
2,957,750.00
865,250.00
Seattle ...............
....
36,761.27
158,521.99
New O r l e a n s ...........
40. 699.56_________ 51.351.65
_____ _____ ......
$4,217,367.52
$ 2,132,433.40
Total .......... $29,305,855.92
RECAPITULATION
Imports .........
$29,305,855.92
4,217,367.52
Secondary .........
New Domestic ... ...
2.132 .433.40
Total ..........
$35,655,656.84
Receiets of Secondary Gold from January. 1934 to March 16. 1934:
Philadelphia
January - 1934 ..... $
February .............
March 1-9 ............
March 10-16
22,771.40
234,728.83
669,751.64
425,051.90
1,352,303.77
Total ...... $
SAN FRANCISCO
J a n u a ry ............................ $
February ..••••••....
March 1 - 13 ...... .
March 14 - 16
NEW YORK
January, February
tn Mft.rch 9 T..... .
March 10-16 ..........
j* 18,798,000.00
4,130,000.00
Total ............
$ 22,928,000.90
13,527.99
317,091.15
231,028.21
66,548.76
DENVER
J anuary ..............
February......... .
March 1 - Q ...........
March 10 - 16 .........
$
628,196.11
Total .............
NEW ORLEANS
January .............. $
February......... .
March 1 - 9 ..........
March 10 - 16 ••••••..
662.46
49,726.13
14,592.74
15,112.93
SEATTLE
J anuary
....
February ............ .
March 1 — 9 ..... .....
March 1 0 - 1 6 .........
Total •••••• $
80,094.26
Total .....
GRAND TOTAL
T o t a l .... .
$
10,309.00
71,518.00
223,590.00
179i252.00
$
484,669.00
$
1,503.49
69,625.57
43,407.24
27 j028,76
$
141,565.06
$25,614,828.20
(Continued on Page 2)
-
2
-
gold r e c e i v e d by federal r e s e r v e banks a n d the
TREASURERS OFFICE;
(Under Secretary*s Order of December 28, 1933)
Gold Coin
Received By Federal Reserve Banks:
$
122,015.84
Week ended March 21 •*•«••••••
Received previously
.** 26,675,476.88
Total to March 21 ........ $26,797,49 3.72
Received hy Treasurers Office:
Week ended March 21 ••••••••••$
Received previously ••••.....
Total to March 21 ......... $
NOTE:
Gold Certificates
$
1,080,150*
47,851,040.
$
48,931,190*
1»34o.00
240,449.00
$
260,000.
1,341,000.
241,794.00
$
1,601,000.
In addition, gold Bars to the amount of $200,572.69 deposited with the
New York Assay Office, as previously noted.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Weed ended March 24:
.
Federal Deposit insurance Corporation .......
$ 23,241,000
Other accounts........ ................
>x,503,000
Total for week .....................
$
57;744,000
RELEASE, HOMING PAPERS,
Friday, March 30, 1934.
FOR
TREASURY DEPARTMENT
STATEMENT EY ACTING SECRETARY OP THE TREASURY GIBBONS
The Secretary of the Treasury gives notice that tenders are invited
for two series of Treasury hills to the aggregate amount of $100,000,000, or
thereabouts.
One series will be 90-day bills and the other series will be
182-day bills.
bidders.
Both series will be sold on a discount basis to the highest
Tenders will be received at the Federal Reserve Banks* or the
branches thereof, up to two o ’clock p. m., Eastern Standard time, on Monday,
April 2, 1934.
Tenders will not be received at the Treasury Department,
Washington.
The Treasury bills will, as stated, be issued in two series,$50,000,000,
or thereabouts, maturing on July 3, 1934, and $50,000,000, or thereabouts,
maturing on October 3, 1934; both series to be dated April 4, 1934.
Bidders
will be required to specify the particular series for which each tender is made.
The face amount of the bills of each series will be payable without interest
on their respective maturity dates.
The bills will be issued in bearer form
only, and in amounts or denominations of $1 ,000 , $1 0 ,000 , $100 ,000 , $500,000,
and $1 ,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
tender must be in multiples of $1,000.
Each
The price offered must be expressed
on the basis of 100 , with not more than three decimal places, e. g., 99 .12 o,
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
; and trust companies and from responsible and recognized dealers in investment
l
: securities.
Tenders from others must be accompanied by a deposit of 10 per
: cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
: company.
Immediately after the closing hour for receipt of tenders on April 2,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
; to the closing hour will be opened and public announcement of the acceptable
j prices for each series will follow as soon as possible thereafter, probably on
j the following morning.
The Secretary of the Treasury expressly reserves the
right to reject any or all tenders or parts of tenders, and to allot less than
the amount applied for, and his action in any such respect shall be final.
Any
tender which does not specifically refer to a particular series will be subject
to rejection.
Those submitting tenders will be advised of the acceptance or
rejection thereof.
Payment at the price offered for Treasury Bills allotted
must be made at the Federal Reserve Banks in cash or other immediately availaole
funds on April 4, 1934, provided, however, any qualified depositary will be
permitted to make payment by credit for Treasury bills maturing October 3, 1934,
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 Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
|
taxation, except estate and inheritance taxes,
ho loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
3Treasury Department Circular Ho. 418, as amended, and this notice
prescribe the terms of the Treasury hills and govern tne conditions of their
issue. Copies of the circular may he obtained from any federal Reserve Bank
or branch thereof
TREASURY DEPARTMENT
Washington
April 2, 1934.
MEMORANDUM FOR THE PRESS
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week: ending March 30 s
Denver
123,438.00 fine ounces
Philadelphia...... 125,431.64 H
H
San Erancisco...•• 105,841.44 11
"
Total for the week: .••••••«•«•••••••••••••
354,711.08 fine ounces
Received previously ..•••••••••••••••••••• 2,746,966.89
Total receipts to March 30*••*•«•••••••••• 3,101,677.97
RECEIPTS OF GOLD BY THE MINTS AND ASSAY PEE ICES.:
Imports______
Week ending March 30s
Philadelphia ••••••• $
—
$
582,768.61
San Erancisco •••••.
45,568.00
Denver •••••••••••«•
New York ••••••••••« 25,340,000.00
Seattle ••••••••••..
18,248.96
New Orleans •••••••«
T o t a l ........... $25,986,585.57
$
New
Domestic
----.
Secondary
725c689.94
104s496.83
93,977.00
3,054,000.00
40,794.31
31,331.05
8 2 6 ,1 5 6 .3 1
4 7 9 ,1 3 9 .0 0
3 3 0 ,0 0 0 .0 0
1 7 9 ,4 0 8 .2 5
________ 116é48
4,050,289.13
$ 1 ,8 1 4 ,8 2 0 .0 4
$
RECAPITULATION
Imports
$25,986,585.57
Secondary •••..••••••.••
4,050,289.IS
New Domestic.•••••••••.
1,814,8^3.04
Total ..............$31,851,694.74
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER* S OFFICE:
(Under Secretary*s Order of December 28, 1933)
Re oeived "by Federal Reserve Banks: ____Gold Coin—
Week ended March 28 «••••••« $
122,115.30
Received previously ••••••••
26,797,493.72
Total to March 28 •••••••« $ 26,919,609.02
Received hy Treasurers Office:
Week ended March 28 ••••«..• $
Received previously
Total to March.28
(*)
••••«•«.
Gold Certificates
$ 1 ,002 ,020.00
4 8 ,9 3 1 ,1 9 0 .0 0
$ 4 9 ,9 3 3 ,2 1 0 .0 0
1,345.00
240,449.00
$
25,500.00
1,367,000.00*
$ 241,794.00
$
1,392,500.00
Corrected figure. Gold Certificates received by the Treasurers
Office week ended March 21 incorrectly reported last week as
$260,000 instead of $26,000.
Note: Gold bars deposited with the New York Assay Office to the amount
of $200,572.69 previously reported.
PUBCHA-SES OE GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Week ended March 31:
Federal Deposit Insurance Corporation
Other accounts
Total
............... .
•••••••• $11,800*000
11,800,000
$23,600,000
FOR RELEASE, MDRNIHG PAPERS,
FRIDAY, APRIL 6 , 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
two series of Treasury hills to the aggregate amount of $100,000,000, or there
abouts.
bills.
One series will be 91-day bills and the other series will be 182-day
Both series will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve Banks, or the branches thereof,
up to two o1clock p.m,, Eastern Standard time, on Monday, April 9, 1934.
Tenders
will not be received at the Treasury Department, Washington.
The Treasury bills will, as stated, be issued in two series, $50,000,000,
or thereabouts, maturing on July 11, 1934, and $50,000,000, or thereabouts, matur
ing on October 10, 1934; both series to be dated April 11, 1934.
Bidders will
be required to specify the particular series for which each tender is made.
The
face amount of the bills of each series will be payable without interest on
their respective maturity dates.
The bills will be issued in bearer form only,
and in amounts or denominations of $1,000, $10,000, $100,000, $500,000, and
$ 1 ,000 ,000 (maturity value)•
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve Banks or branches
upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e. g., 99.125.
must not be used,
Fractions
- 2 Tenders will "be accepted without cash deposit from incorporated “banks and
trust companies and from responsible and recognized dealers in investment securi
ties«
Tenders from others must “be accompanied by a deposit of 10 per cent of the
face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or trust company«
Immediately after the closing hour for receipt of tenders on April 9, 1934,
all tenders received at the Federal Reserve Banks or branches thereof up to the
closing hour will be opened and public announcement of the acceptable prices
for each series will follow as soon as possible thereafter, probably on the
following morning*
The Secretary of the Treasury expressly reserves the right to
reject any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final.
Any tender
which does not specifically refer to a particular series will be subject to,
rejection«
Those submitting tenders will be advised of the acceptance or re
jection thereof«
Payment at the price offered for Treasury bills allotted must
be made at the Federal Reserve Banks in cash or other immediately available
funds on April 11, 1934,
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes,
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No, 418, as amended, 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 thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS
April 9, 1934.
RECEIPTS OE SILVER BY THE MINTS;
(Under Executive Order of December 21, 1933)
Week ending April 6 :
Philadelphia ...... 450,057.29 fine ounces
San Erancisco ••••• 116,726.18 ”
u
Denver •••••»o.....
2,491.00 11
H
Total for the week ..................... . ^ 569,274.47 fine ounces
Received previously •••••«••••••••••••••••• 5,101,677.97
Total receipts to April 6
3,670,952.44
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Week ending April 6 :
Imports
Philadelphia ...... $
--- *—
San Francisco ..•••
711,024.81
Denver ••.•••••••••
39,284.00
New York •••••••••. 20,847,000,00
Seattle ••••••...o.
— — —
New Orleans .c....* ______5,075.21
Total •••••••••• $21,602,384.02
New
Domestic
$
Ï49.87
1 ,093,877« 77
533,243.00
208,000.00
51,200.75
______ 237,13
Secondary
$ 406,791.12
121,384.31
69,012.00
4,973,000.00
25,610.79
21,014.75
$5,616,812.97
$1,886,708.52
recapitulation
Impo rt s ....... ••••••
Secondary.......... .
New Domestic •••••••.••
$21,602,384.02
5,616,812.97
1,886,708.52
Total ..............
$29,105,905.51
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended April 4
Received previously
Total to April 4
Cold Coin______ Gold Certificates,
860,910.00
$
142,339.28
$
49,933,210.00
26,919,609.02
$27,061,948.30
$ 50,794,120.00
Received by Treasurer’s Office:
$
Week ended April 4
Received previously ••.,••••••.....
$
Total to April 4 ....... .
1,500.00
241,794.00
$
243,294.00
i
22,900.00
1*392» 5OO.OO
1,415,400.00
Note: Gold bars deposited with the New York Assay Office to the amount of
$200,572,69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS.:
Week ended April 7:
$ 20,838,000.00
Federal Deposit Insurance Corporation
21,531,400.00
Other accounts .......
$ 42,369,400.00
Total
FOR RELEASE, MORNING- PAPERS,
Friday, April 13, 1934«
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited
for two series of Treasury "bills to the aggregate amount of $125,000,000, or
thereabouts«
182-day hills.
bidders.
One series will "be 91—day "bills and the other series will he
Both series will he sold on a discount basis to the highest
Tenders will he received at the Federal Reserve Banks, or the
branches thereof, up to two o*clock p« m., Eastern Standard time, on Monday,
April 16, 1934.
Tenders will not he received at the Treasury Department,
Washington«
The Treasury hills will, as stated, he issued in two series, $75,000,000,
or thereabouts, maturing on July 18, 1934, and $50,000,000, or thereabouts,
maturing on October 17, 1934; both series to be dated April 18, 1934.
Bidders
will be required to specify the particular series for which each tender is
made.
The face amount of the bills of each series will be payable without
interest on their respective maturity dates.
The bills will be issued in
bearer form only, and in amounts or denominations of $1 ,000 , $1 0 ,000 ,
$100 ,000 , $500,000, and $1 ,000,000 (maturity value).
It is urged that tenders bo made on tne printed forms and forwarded
in the special envelopes which will be supplied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
mast be in multiples of $1,000.
The price offered must he expressed on the
basis of 100, with not more than three decimal places, e. g., 99.125.
must not be used,
Each tender
Fractions
- 2 Tenders will "be accepted without cash deposit from incorporated "baru^-S
and trust companies and from responsible and recognized dealers in investment
securities«
Tenders from others must he accompanied "by a deposit of 10 per cent
of the face amount of Treasury hills applied for, unless the tenders are ac
companied by an express guaranty of payment by an incorporated bank or trust
company«
Immediately after the closing hour for receipt of tenders on April 16,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices for each series will follow as soon as possible thereafter, probably on
the following morning*
The Secretary of the Treasury expressly reserves the
right to reject any or all tenders or parts of tenders, and to allot less than
the amount applied for, and his action in any such respect shall be final»
Anjr
tender which does not specifically refer to a particular series will bo_gufrject
to rejection.
Those submitting tenders will be advised of the acceptance or
rejection thereof*
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately available
funds on April 18, 1934,
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes*
ÎTo loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular Ho* 418, as amended, and this notice pre*
scribe the terms of the Treasury bills and govern the conditions of their isoue*
Copies of the circular may be obtained from any Federal Reserve Bank or branch
thereof
TREASURY DEPARTMENT
Washington, D. C.
April 16, 1934*
Following is text of letter transmitted "by the Secretary of the Treasury
to Honorable Duncan U. Fletcher, Chairman, Senate Banking and Currency Committee,
together with text of memorandum which accompanied the letter.
"April 13, 1934.
Dear Mr. Chairman:
Receipt is acknowledged of your clerk1 s letter of March 8 , 1934, transmit
ting a copy of the hill, S.2949, 'To permit resumption of industrial activity,
increase employment, and restore confidence by fulfillment of the implied guar■ anty by the United States Government of deposit safety in national banks' , and
.requesting a report thereon.
The bill proposes to free deposits frozen in closed banks by directing the
Reconstruction Finance Corporation to purchase all the remaining assets of
closed national banks and State member banks of the Federal Reserve System. The
proceeds are then to be made immediately available to the depositors, while the
Reconstruction Finance Corporation is to liquidate the assets over a period of
years.
|
There is the gravest doubt whether recovery could be materially assisted by
the plan proposed. Since a very high percentage of the total amounts of de
posits now frozen stands to the credit of a small percentage of depositors, the
expenditure involved could scarcely be justified as a means of affording wide
spread relief. The administrative and legal difficulties which would ensue
could only minimize the gains which the measure is designed to achieve. Furthermore, the adoption of the principle, implicit in the bill, that the Government
should guarantee the efficiency of those functions and activities of its citizens
because it may have, to a greater or less extent, supervised or controlled them,
would be unfortunate.
Finally, the addition of this burden upon the tax payers, which, exclusive
of interest, may be estimated at from $1,250,000,000 to $2,500,000,000, would,
in the opinion of this Department, outweigh any benefits that the legislation
could achieve.
A memorandum, discussing the measure in greater detail, is enclosed for
your convenient reference.
Respectfully,
H. Morgenthau, Jr.,
Secretary of the Treasury.
Honorable Duncan U. FletcherChairman, Banking and Currency Committee
United States Senate"
»MEM0RA3TDUM
Reference is made to S. 2949, being a bill 'to promote resumption of in
dustrial activity, increase employment, and restore confidence by fulfillment
of the implied guaranty by the United States Government of deposit safety in
national banks' . This bill directs the Reconstruction Finance Corporation to
purchase and liquidate the remaining assets of closed national banks and State
member banks of the Federal Reserve System, paying the receivers or conservators
thereof sufficient funds to satisfy the remaining deposit liabilities of such
banks in full#
While the initial disbursement involved in this proposal can only be ap
proximated and the ultimate cost vaguely surmised, the following figures and
comments are suggested.
As of March 12, 1934, there were 1,468 national banks in receivership, with
an unpaid deposit liability (which is exclusive of other liabilities, such as
for money borrowed, etc.) of $920,000,000.00. There were 284 national banks in
conservatorship with similar unpaid deposit liabilities of $210,000,000.00. As
to State member banks, 250 were in receivership and 47 in conservatorship, to
gether having a total similar unpaid deposit liability of approximately
$685,000,000.00. The initial disbursement thus required by the Reconstruction
Finance Corporation would be approximately $1,815,000,000.00.
As to the -ultimate cost of this project, after crediting probable realiza
tion by the Reconstruction Finance Corporation from the assets acquired, ^an es
timate was reached by analyzing a representative group of 100 closed national,
banks of all sizes in all sections of the United States as of December 31, 1933*
It was found there was an average deficiency in assets as against deposit plia
bilities only, of 44 per cent-um. Total deposit liabilities of closed national
banks and State member barks as of their suspension were approximately
$3,104,500,000.00. Applying to this figure the 44 per centum av 3rage deficiency
in assets, there is ascertained an approximate actual deficiency or ultimate
cost to the United States Treasury and to the taxpqyers of $1,366,000,000.00.
This loss will be substantially increased by the interest to be paid on the mone^
borrowed to finance this plan, and by the expense incurred over the 10 year
period in liquidating the assets of the banks.
If, as is likely, in this instance, it is found that adoption of the bill
can be had only by amending it to include State nonmember banks, the ultimate
loss will be increased to an extent far beyond present computation.
The title of the bill states that its proposals are in fulfillment of the
implied guaranty by the Government of deposit safety in national and State member
banks. This is considered a most hazardous responsibility to admit^or accept.
It establishes a precedent that may be extended to any business activity over
which the Government exercises any supervision. Thus the holders of the bonds
of Joint Stock Land Banks and of Federal Land Banks and of the debentures of
Federal Intermediate Credit Banks would be in a position to contend that the
Governments supervision over these agencies, being similar to that which it
exercises over National Banks, entitles such holders to recover from the^Govern
ment any loss which they may ever have sustained as a result of dealing in
these securities. Indeed, a similar argument might be advanced with respect to
-
2
-
other business activities supervised, to any extent by the Government, such as the
sale of alcoholic liquor, railroads, radio, and possibly even to include in
dividual losses, on securities registered under the Securities Act, and in the
stock market in the event that the Government assnmed supervision thereof.
It is not clear whether the bill is limited to banks closed at date of its
enactment or whether it embraces banks that suspend any time in the future. If
the latter are included, the obligation being assumed is immeasurable, and it
would seem the functions of the Federal Deposit Insurance Corporation as in
surer of deposits will be entirely superseded, If the plan is not to extend to
future suspensions, it is difficult to see how a distinction between depositors
of a bank closing before the bill*s enactment and depositors of one closing a
week thereafter can be supported legally or in principle. Like comment may be
made on the fact that no relief is given to the depositors of hundreds of closed
banks who in the past year waived part of their deposits in order to restore the
banks to solvency under Section 207 of the Bank Conservation Act or to the nonconsenting minority of depositors in such banks who lost part of their deposits
involuntarily due to the operation of Section 207. Those who voluntarily waived
part of their deposits are penalized for their patriotic effort to reopen the
banks during this emergency, whereas if they had acted otherwise the respective
banks would be in receivership and under this bill those depositors would be
paid in full. Depositors of closed banks, liquidation of which nas been com
pleted and receivers discharged are likewise excluded. There have been 267 such
receiverships of national banks closed the past three years with substantial
loss to depositors. If this legislation is based on an implied governmental
guaranty of safety as set forth in its title, then it would seem such implied
guaranty has been equally given to all the excluded classes of depositors and to
creditors other than depositors as well. If these excluded classes must be in
cluded to sustain the constitutionality of the legislation, the cost bo tne tax
payers will, of course, greatly exceed estimates herein submitted.
Provision is made that all remaining assets of the banks, including assess
ment liability of shareholders, shall pass to the Reconstruction Finance Corpora
tion.
This is an effort to accomplish what is deemed a legal impossioility as
against creditors other than depositors. The Supreme Court of the United States
has held several times that the rights of all creditors attach to the bank*s
assets at suspension, and that the assessment liability of shareholders is an
asset belonging to the creditors (Scott v, Deweese, 181 U, S. 202, etc.). Pro
vision is made under the Rational Bank Act, U. S. Code, title 12, section 65 for
the direct enforcement of shareholders1 liability by the creditors without in
tervention of a receiver. Hundreds of millions of dollars are owed by closed
banks to open banks that hold deficiency notes of such banks or^have loaned money
to them. Closed banks are indebted in large amounts to beneficiaries of trust
estates administered by their trust departments. Tney are largely indebted on
outstanding drafts and checks. Rone of these obligations are depositor obliga
tions and none would be provided for by this bill. Consequently, such creditors
would appear to have a prior claim against the assets of the banks and the
assessment liability of their shareholders, which prior claim cannot be destroyed
by this legislation, even though it attempt to do so and which would substantially
reduce the figures above given as to the estimated probable recovery by the
Reconstruction Finance Corporation and correspondingly increase the figures as
to the ultimate cost or loss involved under this plan.
If the transaction is considered as a sale of assets, then the Reconstruc
tion Finance Corporation does not “become a creditor of the “bank; hence, is not
entitled to assert assessment liability against its shareholders, inasmuch as
such liability is for the benefit of creditors only. If the Reconstruction
Finance Corporation is to be considered as becoming a creditor of the bank by
virtue of the transaction, it becomes such after the bank* s suspension, as to
banks in the hands of receivers, and the courts held that shareholders are not
subject to assessment for debts arising subsequent to suspension.
If, on the other hand, the purpose of the bill is to create what is, in
effect, a purchase from the shareholders of their rights, in exchange for a pay
ment to them of the amount of their deposit, a different problem arises. It may
be true that under this theory the Reconstruction Finance Corporation would, on
the principle of subrogation, be entitled to proceed against the shareholders for
any deficiency to the same extent that the depositors had that right. On this
theory, however, the Reconstruction Finance Corporation would obtain only such
rights in the assets as the depositors had. Future developments in realization
on assets of some of the banks involved, especially of banks in conservatorship,
may be such that in ordinary course of liquidation there will be a surplus for
distribution to shareholders. On the theory of subrogation, these rights would
have to be considered, but the present bill entirely overlooks any property rights
of such shareholders and purports to invest absolute title in the Reconstruction
Finance Corporation to all future recovery on the assets taken over.
The bill attempts to suspend the Statute of Limitations, apparently to en
able the Reconstruction Finance Corporation to obey the mandate given that it
allow debtors ten years to pay and yet avoid the barring of such debts by State
Statute of Limitations of shorter duration. There may be some question, as to
whether Congress can suspend the operation of a State Statute of Limitations now
operating in favor of an existing debtor, unless the debtor consents under the
circumstances here involved.
There are pending or in prospect numerous suits against bank directors based
on their civil liability to the bank*s depositors and other creditors. No ade
quate provision is made for carrying on such litigation or giving the Reconstruc
tion Finance Corporation any benefit of recovery therefrom. Furthermore, since
the depositors are to be paid in full, the bulk of such directors1 liability as
now exists may thereby be extinguished, because such liabilitjr is based on loss
to the creditors; hence, may be substantially eliminated to the extent that de
positor creditors are relieved from loss through payment by the Reconstruction
Finance Corporation.
It is doubtful whether the Reconstruction Finance Corporation will be sub
rogated to the rights of the bank or its receiver against the sureties on fidelity
bonds, particularly in view of the provisions of many of the surety contracts
involved. Numerous suits and claims of this character involving large sums are
pending.
There are pending many suits and claims of depositors involving determina
tion of the amount of the bankas deposit obligation to them or whether or not
there is in fact a deposit obligation or an obligation of a different character.
No provision of the bill adequately cares for this situation.
- 4 Suits and claims of depositors and debtors involving offset and consequent
determination of net deposit liability are pending. The bill does not provide
for the determining of such matters.
Suits involving collection of stock assessments already levied are pending
and no provision of the bill provides for the disposition of same. Inasmuch as
the Reconstruction Finance Corporation cannot enjoy the benefit of these assess
ments to the exclusion of non-depositor creditors and in fact may not be entitled
to participate therein at all, and since once a receiver is in charge he alone
can collect such assessment, it follows that the Reconstruction Finance Corpora
tion could not proceed onits own behalf to collect such assessment. If the re
ceivers are to remain in charge of banks to collect such assessments, then since
the Reconstruction Finance Corporation will have taken possession of all the
assets, there will be no means of carrying the expense of such receivership and
litigation pertaining thereto except by anticipation against hoped-for collections
which may not materialize.
No doubt one of the objects of the bill is to stimulate recovery by promot
ing industrial activity and employment. This will not necessarily follow because
an analysis of the distribution that will be made to the depositors of a large
closed city bank shows that 46 per centum would be received by 1/2 of 1 per
centum of the depositors, while in a small country bonk, 44 per centum would go
to 7.3 per centum of the depositors. In other words, nearly half of the money
to be distributed would be received by about four per centum of the depositors,
and this group may in large part place comparatively little thereof in circular*
tion by purchase of commodities or in industrial activity productive o f employ
ment • Since the program must be financed ultimately through taxation, there is
a serious question whether taxation may be resorted to for the benefit of such an
arbitrarily selected class, particularly where half of the proceeds will be en
joyed by a comparatively small group in the class intended to be benefited.
In the last analysis this bill would establish the principle of guaranty
by the United States of bank deposits, past, present, and future.'1
TREASURY DEPARTMENT
WASHINGTON
jUEMORANDUM FOR THE PRESS
Aoril 16, 1934*
|¡RECEIPTS OF SILVER BY THE MINTS:
i (Under Executive Order of December 21, 1933)
I Week ending April 13:
San Francisco ..... 8,489.51 fine ounces
D e n v e r ..... .
.. 1.543.QO
n
M
Total for the w e e k ......... ......................,. 10,032.51 fine ounces
Received previously ...................... ...... 3,670.952.44 *
11
3.680.984.95 n
”
Total receipts to April 13 .....................
RECEIPTS 0? GOLD BY THE MINTS AND ASSAY OFFICES :
Week ending April 13:
Philadelphia......
San Francisco .....
Denver .... ........
New York ...........
Seattle ............
New Orleans .......
Total
I
762,000.17
25,080.00
12,147,000.00
_Secondary
$
343,736.69
106,447.49
124,865.00
3,184,400.00
26,233.05
______12, 532.05
12,934,080.17
$
Imports
$
New
Domestic_
$
185>00
822,634.58
511.389.00
554.600.00
162,960.76
$ 2,051,769.34
3,798,214.28
RECAPITULATION
Imports ................. $ 12,934,080.17
Secondary ...............
3,798,214.28
New Domestic ............ 2.051.769.34
Total ............
$ 18,784.063.79
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended April 11 ............ .
Received previously .............
Total to April 11 ............
______ Gold Coin____
$
119,618.54
27.061.943.30
$ 27,181,566.84
Gold Certificates
$ 1,009,650.00
50.794.120.00
$ 51,803,770.00
Received by Treasurer’s Office:
Week ended April 11 ......... .
Received previously.............
Total to April 11 ...........
$
......
.....243. 294.00
$
243.294.00
$
27,100.00
___1.415.400.00
$ 1.442.500.00
Note: Gold bars deposited with the New York Assay Office to the amount of
$200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:Week ended April 14:
Federal Deposit Insurance Corporation ........ .
Other accounts ............................... ..........
Total ..................... ...............
$
10,290,000.00
10.290.000.00
$
20.580.000,00
TREASURY DEPARTMENT
FOR RELEASE, MORNING- PAPERS,
Friday, April 20, 1934«
STATEMENT BY SECRETARY MORG-ENTHAU
The Secretary of the Treasury gives notice that tenders are invited for two
series of Treasury hills to the aggregate amount of $125,000,000, or thereabouts.
One series will be 91-day bills and the other series will be 182-day bills.
series will be sold on a discount basis to the highest bidders.
Both
Tenders will be
received at the Federal Reserve Banks, or the branches thereof, up to two o*clock
p. m, , Eastern Standard time, on Monday, April 23, 1934,
Tenders will not be re
ceived at the Treasury Department, Washington,
The Treasury bills will, as stated, be issued in two series, $75,000,000, or
thereabouts, maturing on July 25, 1934, and $50,000,000, or thereabouts, maturing
on October 24, 1934; both,series to be dated April 25, 1934,
Bidders will be re
quired to specify the particular series for which each tender is made.
The face
amount of the bills of each series will be payable without interest on their re
spective maturity dates.
The bills will be issued in bearer form only, and in
amounts or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value),
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve Banks or branches
upon application therefor.
No trender for an amount less than $1,000 will be considered.
must be in multiples of $1,000,
Each tender
The price offered must be expressed on the basis
of 100, with not more than three decimal places, e, g,, 99*125,
Fractions must
not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties,
Tenders from others must be accompanied by a deposit of 10 per cent of the
~ 2 face amount of Treasury tills applied for, unless tlie tenders are accompanied by
an express guaranty of payment "by an incorporated tank or trust company«
Immediately after the closing hour for receipt of tenders on April 23, 1934,
all tenders received at the Federal Reserve Banks or tranches thereof up to the
closing hour will te opened and public announcement of the acceptable prices for
each series will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject any
or all tenders or parts of tenders, and to allot less than the amount applied for,
and his action in any such respect shall be final.
Any tender which does not_
specifically refer to a particular series will be subject to rejection.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at the federal
Reserve Banks in cash or other immediately available funds on April 25, 1934.
The Treasury bills will be exempt, as to principal and interest, and any gain
from the sale or other disposition thereof will also be exempt, from all taxation,
except estate and inheritance taxes.
No loss from the sale or other disposition of
the Treasury bills shall be allowed as a deduction, or otherwise recognized, for
the purposes of any tax now or hereafter imposed by the United States or
of
its possessions.
Treasury Department Circular No, 418, as amended, 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 thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR TEE PRESS
April 23, 1934.
SEIZURES OE LIQUOR AND OF VEHICLES USED IN ITS TRANSPORTATION
Three Months Period ended February 28, 1933 and 1934
(As Reported by the Collectors of Customs)
Dec* 1, 1932
to
Feb* 28,1933
Dec. 1, 1933
to
Feb. 28,1934
Percent of
Increase (/)
Decrease (-)
3,626
1,907
-
47.4
Distilled Liquors and Wines
Gallons
Value
67,272
*
17,061
$159,468
-
74.6
*
Malt Liquors
Gallons
Value
12,624
*
243
$848
98.1
*
Alcohol
Gallons
Value
5,721
$11,918
12,383
$122,150
i"
116.4
924.9
Number
Value
96
$181,145
12
$4,976
—
87.5
97.3
Automobiles
Number
Value
218
$45,862
128
$29,277
•*» 41.3
-* 36.2
Airplanes
Number
Value
4
$11,450
1
$200
75.0
98.3
5
$29
5
$157
Number of Seizures
Boats
Other Vehicles
Number
Value
* Not available
%
441.4
TREASURY DEPARTMENT
WASHINGTON
MEMORANDUM POP THE PRESS.
April 23,1934.
STILLS SEIZED AND ARRESTS MADE BY REGULATIVE
INSPECTORS. BUREAU OE INDUSTRIAL ALCOHOL, WEEK
ENDING APRIL„21. (Preliminary;subject to correction.)
STÎLLS
•SEIZED
DAILY
CAPACITY
AUTOMOBILES
AND TRUCKS
ARRESTS
MADE
BOSTON
(Me.,Vt.,N.H.,
Mass ., Conn., R. I .)
0
0
0
0
2.
NEW YORK
4
2,050
0
7
3.
PHILADELPHIA
(Pa.,N.J.,Del.)
2
1,500
1
7
17
3,040
1
19
NEW ORLEANS
(Ga. ,Pla. ,Ala.,
Miss.,La.,Tex.)
31
3,895
3
38
CINCINNATI
(Mich.,Ohio,
Ky.,Tenn.)
21
3,040
1
29
9
CHICAGO
(Wise.,111.Ind.)
2
ST. PAUL
(ND, SD.Minn. ,Neb.,la)
7
ST. LOUIS
(Kans.,Okla.,Mo.,Ark)
1,150
0
7
55
1
2
6
20
500
0
0
1.
4.
BALTIMORE
(Md.,D.C.,Va.,W.Va.,
N.C., S.C.
5.
6.
7.
8
.
9.
10.
11.
12.
DENVER
(Colo.,Wyo..Utah,
Ariz.,N.Mex.)
750
1
SAN FRANCISCO
(Calif.,Nev..Hawaii)
0
0
0
0
SEATTLE
(WasJa,Ore.,Idaho,
Alaska)
1
800
1
3
95
16,780
14
132
TOTAL
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS
April 23., 1934.
RECEIPTS OE SILVER EY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending April 20:
San Francisco ••••••.
Denver ............ .
682.677.31 fine ounces
71,261.00
1
”
753.938.31
Total for the week
,f
"
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES,:
Week ending April 20:
______Imports______
Philadelphia ,....
$
1,067.64 $
San Francisco ••••
954,398.27
Denver
26,664.00
New York .........
10,255,086.00
Seattle ..........
--New Orléans ...... ____ 13,142.03
Total .........
New
Secondary--- --- Domes tip,
327,398.52 $
422.00
125,911.30
944,362.03
89,472.00
489,013.00
727,593.00
31,711.00
28,814.43
239,393.92
90,138.36
______
“
$11,250,357.94$1,389,327.61
$1,704,901.95
RECAPITULATION
Imports ••••
Secondary ••
New Domestic
$11,250,357.94
1,389,327.61
1,704,901.95
Total ••••
$14,344,587.50
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURE R S OFFICE:
(Under Secretary’s Order of December 28, 1933)
I
Received by Federal Reserve Banks:_____Gold Coin____Gold Certifica_t_ej3
Week ended April 18 •••..•••.••. $
86,474.68
$ 1,144,010.00
Received previously ...........
27,181,566.84
51,803,770.00
Total to April 18 ••••••••»*•••« $27,268,041,52
Received by Treasurer’s Office:
Week ended April 18 ••••.••••.*«
Received previously «••■••.«•••
Total to April 18
$
$52,947,780.00
1,500.00
243,294.00
$
16,100.00
1,443,500.00
244,794.00
$ 1,458,600.00
Note: Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Week ended April 21:
Federal Deposit Insurance Corporation ...... . . . $20.,0 0 0 , 000.00
10,500,000.00
Other accounts
.......*•••••*••••••*•*
Total
•. ..... $30,500,000.00
FOR RELEASE, MORNING PAPERS,
Friday, April 27, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
two series of Treasury bills to the aggregate amount of $125,000,000, or
thereabouts.
One series will be 91-day bills and the other series will be
182-day bills.
bidders.
Both series will be sold on a discount basis to the highest
Tenders will be received at the Federal Reserve Banks, or the
branches thereof, up to two o ’clock p. m., Eastern Standard time on Monday,
April 30, 1934.
Tenders will not be received at the Treasury Department,
Washington.
The Treasury bills will, as stated, be issued in two series, $75,000,000,
or thereabouts, maturing on August 1, 1934, and $50,000,000, or thereabouts,
maturing on October 31, 1934; both series to be dated May 2, 1934,
Bidders
will be required to specify the particular series for which each tender is
made.
The face amount of the bills of each series will be payable without
interest on their respective maturity dates.
The bills will be issued in
bearer form only, and in amounts or denominations of $1,000, $10,000, $100,000
$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e. g,, 99.125,
Frac
tions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
-
securities.
2
-
Tenders from others must he accompanied by a deposit of 10 per
cent of the face amount of Treasury hills applied for, unless the tenders are
accompanied hy an express guaranty of payment hy an incorporated hank or
trust company.
Immediately after the closing hour for receipt of tenders on April 30,
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will he opened and public announcement of the accept
able prices for each series will follow as soon as possible thereafter, prob
ably on the following morning.
The Secretary of the Treasury expressly re
serves the right to reject any or all tenders or parts of tenders, and to allot
less than the amount applied for, and his action in any such respect shall he
final.
Anv tender which does not specifically refer to a particular series
will he subject to rejection.
Those submitting tenders will he advised of the
acceptance or rejection thereof.
Payment at the price offered for Treasury
hills allotted must he made at the Federal Reserve Banks in cash or other
immediately available funds on May 2, 1934,
The Treasury hills will he exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also he exempt, from all
taxation, except estate and inheritance taxes.
No loss from the sale or other
disposition of the Treasury hills shall he allowed as a deduction,, or other
wise recognized, for the purposes of any tax now or hereafter imposed hy the
United States or any of its possessions.
Treasury Department Circular No.,418, as amended, and this notice pre
scribe the terms of the Treasury hills and govern the conditions of their
issue.
Copies of the circular may he obtained from any Federal Reserve Bank
or branch thereof,
TREASURY DEPARTMENT
Washingt on, D . C•
May 2, 1934»
Following is text of letter transmitted "by the Secretary of the Treasury to
Honorable Prentiss M. Brown, House of Representatives:
"April 24, 1934.
My dear Mr. Brown:
I have your letter of April 18, 1934, referring to the cost of the
McLeod Bill and requesting that I have prepared for you a similar cost
analysis of the bill introduced by you.
You realize, of course, that it is extremely difficult to get accurate
figures without an analysis of each bank involved, and especially where
non-member state banks are involved, since there is no central source of in
formation with respect to such banks# Therefore, any estimate which is made
must be based upon an analysis of the situation with respect to national
banks and the application of that analysis to the state banks, with the hope
that it is somewhere near right. I have, therefore, endeavored to give you
below an analysis or estimate on the basis of the expenditures necessary and
the cost to the Government, under the first section of your bill. There is
no way that I know of to give you a reasonably accurate estimate of cost
under Section 2 or Section 5 of the bill.
The initial expenditure under Section 1 of the bill would be
$1,807,299,942, with estimated recoveries of $724,088,196, or net loss to
the Government of $1,083,211,746.
The above stated amounts are made up from three classes of banks:
national, state member and non-member as follows:
No. of banks closed on
or after Jan. 1, 1930.
H. F. C. Advances
Recoveries
1,581 national banks
$ 575,135,304
281 state
member banks
402,679,945
5,554 state
non—member banks 829,494,693
7,416
$1,807,299,942
Loss to U. S.
$257,100,216
$318,025,088
150,998,619
251,681,326
315,989,361____ 513,505,332
$724,088,196 $1,083,211,746
The foregoing figures, of course, do not include any estimate for interest
costs pending final liquidation.
There is attached hereto a detailed statement of the estimate set forth
above. You will note that an estimate of the cost on the basis of a $1,000 pay
off can be obtained from this detail. It was, however, not practical to break
down the figures to show the cost of a $1,500 pay-off.
Very truly yours,
Honorable Prentiss M. Brown,
House of Representatives*
H. Morgenthau, Jr*,
Secretary of the Treasury.
FOR RELEASE, MORNING PAPERS,
Friday, May 4, 1934,
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
two series of Treasury "bills to the aggregate amount of $125,000,000, or there
abouts«
bills«
One series will, be 91—day bills and the other series will be 182—day
Both series will be sold on a discount basis to the highest bidders*
Tenders will bo received at the Federal Reserve Banks, or the branches tnereof,
up to two o*clock p, m * , Eastern Standard time, on Monday, May 7, 1934»
Tenders
will not be received at the Treasury Department, Washington*
The Treasury bills will, as stated, be issued in two series, $75,000,000,
or thereabouts, maturing on August 8, 1934, and $50,000,000, or thereabouts,
maturing on November 7, 1934; both series to be dated May 9, 1934*
Bidders
will be required to specify the particular series for which each tender is
made*
The face amount of the bills of each series will be payable without
interest on their respective maturity dates.
The bills will be issued in
bearer form only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value)*
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered*
mast be in maltiples of $1,000.
Each tender
The price pffered mast be expressed on the
basis of 100, with not more than three decimal places, e* g*, 99*125*
Frac
tions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others mast he accompanied "by a deposit of 10 per
cent of the face amount of Treasury hills applied for, unless the tenders are
accompanied hy an express guaranty of payment hy an incorporated hank: or trust
company.
Immediately after the closing hour for receipt of tenders on May 7, 1934,
all tenders received at the Federal Reserve Banks or branches thereof up to the
closing hour will he opened and public announcement of the acceptable prices
for each series will follow as soon as possible thereafter, probably on the
following morning.
The Secretary of the Treasury expressly reserves the right
to reject any or all tenders or parts of tenders, and to allot less than the
amount applied for, and his action in any such respect shall be final.
Any
tender which does not specifically refer to a particular series will be subject
to rejection.
Those submitting tenders will be advised of the acceptance or
rejection thereof.
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately availabl
funds on May 9, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition therof will also be exempt, from all
taxation, except estate and inheritance taxes,
ITo loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or other
wise recognized, for the purposes of any tax now or hereafter imposed by the
United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve Bank
or branch thereof.
TREASURY DEPARTMENT
Washington
May 7, 1934.
MEMORANDUM FOR THE PRESS:
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending May 4, 1934:
San Francisco....... .................
Denver .......................... .
Philadelphia ................... ......
Total for the w e e k .................
343,494.35 fine ounces
2,866.00
”
300.863.24, . "
"
647,223.59
"
”
RECEIPTS OF GOLD BY THE MINTS ADD ASSAY OFFICES:
Week ending May 4, 1934
Philadelphia..... .
San Francisco ......
Denver .............
New York............
Seattle ............
Few Orleans
Total
New
____ Imports________Secondary______ Domestic
..
$
17,496.46
$
244,898.38
$
2,074.06
805,911.00
142,821.07
634,122.36
14,966.00
105,635.00
752,039.00
8,407,560.00
1,764,340.00
23,100.00
..
24,785.76
175,325.54
-------------- 12.696.77
--------$9,245,933.46
$2,295,176.98
$1,586,660.96
GOLD RECAPITULATION
Imports .................. $ 9,245,933.46
Secondary ......... .
2,295,176.98
Few Domestic..... .......
1,586,660.96
Total .............
$13,127,771.40
GOLD RECEIVED BY FEDERAL RESERVE B A M S AND THE TREASURERS OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended May 2 ......... .
Received previously ..........
Total to May 2 ...............
Received by Treasurer’s Office
Week ended May 2 .......... .
Received previously ..........
Total to May 2 .............. ,
Rote:
Gold Coin
$
123,398.51
27.438.892.60
$27,562,291.11
$
$
1, 200.00
244.794.00
245,994.00
Gold Certificates
779,960.00
53.837.900.00
$54, 617,860;00
$
$
14,900.00
1.472,600.00
$ 1,487,500.00
Gold bars deposited with the Few York Assay Office to the amount of
$200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for week ended May 5, 1934 .............. $5,001,500
TRMSCJ1Î D E P A H T M »
Following is text of letter transmitted by the Secretary of the
Treasury, under date of May 9, 1934, to Hon« Duncan U. Fletcher, Chairman,Senate
Committee on Banking and Currency«
’’May 9th+ 1934«
My dear Chairman:
There have been submitted to the Treasury Department for comment
three bills which would amend the Banking Act of 1933«
The Banking Act of 1933 provided that commercial banks should
divorce their investment affiliates within a year, which expires July 16,
1934. Senate bill, S. 3422, introduced by yourself, would postpone the
time for such divorcement for one year, and Senate bill, S. 3134, intro
duced by Senator Walshs would allow another year if the Secretary of the
Treasury is satisfied that the banks have been diligent and require more
time«
It is my belief that affiliates should be divorced when and as pro
vided in the Banking Act of 1933, and it seems no useful purpose would
be served by further postponing the consummation of this reform.
The other matter involved in the proposed amendments to the Banking
Act of 1933, which have been submitted to the Treasury Department for cont
inent, is Section 21 prohibiting firms handling investment securities from
receiving deposits subject to check or repayment upon presentation of a
pass book, certificate of deposit or other evidence of debt, or upon re
quest of the depositor©
Both S, 3422, introduced by yourself, .and
S. 3316, introduced by Senator Russell, would postpone the effective date
of these provisions of Section 21«
It is my view that postponement of
the operation of these provisions of law is not advisable.
Very truly yours,
(Signed)
Hon, Duncan U, Fletcher,
Chairman, Committee on Banking and Currency, u
Henry Morgenthau, Jr.
FOR RELEAlSE, MORNING PAPERS f
Friday, May 11, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTBAU
Tlie Secretary of tlie Treasury gives notice that tenders are invited
for two series of Treasury hills to the aggregate amount of $100,000,000, or
thereabouts*
182-day hills.
bidders.
One series will he 91—day hills and the other series will he
Both series will he sold on a discount basis to the highest
Tenders will he received at the Federal Reserve Barks, or the
branches thereof, up to two o ’clock p# m. , Eastern ¿standard time, on Monday,
May 14, 1934.
Tenders will not he received at the Treasury Department »Washington
The Treasury hills will, as stated, he issued in two series, $50,000,000,
or thereabouts, maturing on August 15, 1934, and $50,000,000, or thereabouts,
maturing on November 14, 1934; both series to he dated May 16, 1934.
Bidders
will he required to specify the particular series for which each tender is made.
The face amount of the hills of each series will he payable without interest on
their respective maturity dates.
The hills will he issued in hearer form only,
and in amounts or denominations of $1,000, $10,000, $100,000t $500,000, and
$1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
tender mast be in multiples of $1,000.
Each
The price offered must he expressed
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not he used.
-
2
-
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers irr investment
securities*
Tenders from others imist be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company*
Immediately after the closing hour for receipt of tenders on May 14, 1934,
all tenders received at the Federal Reserve Banks or branches thereof up to the
closing hour will be opened and public announcement of the acceptable prices for
each series will follow as soon as possible thereafter, probably on the follow
ing morning*
The Secretary of the Treasury expressly reserves the right to re
ject any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final*
Any tender
which does not specifically refer to a •particular series will be subject to
rejection*
Those submitting tenders will be advised of the acceptance or re
jection thereof*
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Bahks in cash or other immediately available
funds on May 16, 1934*
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes*
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their issue*
Copies of the circular may be obtained from any Federal Reserve Bahk or branch
thereof,
TREASURY DEPARTMENT
Washington
MEMORANDUM PQR THE PRESS!
May 14, 1934*
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending May 11, 1934t
San Erancisco .......................
Denver ................
Philadelphia........................
Total for the w e e k .............
194,339.63 fins ounces
5,114.00 »»
«
401.177.47 I
11
600,631.10 ”
11
RECEIPTS OP GOLD BY THE MINTS AMD ASSAY OEEICES:
Week ending May 11, 1934:
Philadelphia....... .
San Francisco .......
Denver ...............
Few York ............
Seattle .............
Uew O r l e a n s .........
Total ...........
New
Imports_________ Secondary_____ Domestic
$
6,640.55
$ 264,142.50 $
271.64
1,130,851.19
135,874.23 1,137,493.66
17,013.00
120,755.00
397,228.00
8,900,100.00
927,070.00
147,000.00
..
27,501.86
66,502.96
22.057.89
45.095.11________ 238.11
$10,076,662.63 $1,520,438.70 $1,748,734.37
GOLD RECAPITULATION
Imports .........
Secondary .......
New Domestic ....
$10,076,662.63
1,520,438.70
1.748.734.37
13,345,835.70
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER’S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Treasurer’s Office:
Week ended May 9 ..........
Received previously.... ......
Gold Certificates
903, 650,,00
$
54, 617, 860,►00
$ 55, 521, 510.
$
__
......245.994.00
$
245,994.00
$
$
32, 600.►00
487,
5Q0,,00
1,
c 520, 100,
o
o
Note:
______ Gold Coin
$
86,786.03
27.5621291111
$27,649,077.14
o
o
Received by Federal Reserve Banks:
Week ended May 9 ......... .
Received previously ..........
Total to May 9 .............
Gold bars deposited with the New York Assay Office to the amount of
$200,572.69 previously reported,
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for week ended May 12, 1934
$500,000.00
TREASURY DEPARTMENT
FOR RELEASE, MORNING PAPERS,
Friday, May 18, 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
|two series of Treasury hills to the aggregate amount of $100,000,000, or
[thereabouts.
Jl82-day bills.
bidders.
One series will be 91-day bills and the other series will be
Both series will be sold on a discount basis to the highest
Tenders will be received at the Federal Reserve Banks, or the
Ibranches thereof, up to two o ’clock p. m., Eastern Standard time, on Monday,
p a y 21, 1934.
Tenders will not be received at the Treasury Department, Wash
ington,
The Treasury bills will, as stated, be issued in two series, $50,000,000,
or thereabouts, maturing on August 22, 1934, and $50,000,000, or thereabouts,
¡maturing on November 21, 1934; both series to be dated May 23, 1934.
Bidders
pill be required to specify the particular series for which each tender is
laade.
The face amount of the bills of each series will be payable without
Interest on their respective maturity dates.
The bills will be issued in
Ibearer form only, and in amounts or denominations of $1,000, $10,000, $100,000,
;$500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in
jthe special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor,
No tender for an amount less than $1,000 will be considered.
imst be in multiples of $1,000.
Each tender
The price offered must be expressed on the
pasis of 100, with not more than three decimal places, e. g,, 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
Ind trust companies and from responsible and recognized dealers in investment
2
-
securities.
-
Tenders from others must "be accompanied by a deposit of 10 per
cent of the face amount of Treasury hills applied for, unless the tenders are
accompanied hy an express guaranty of payment hy an incorporated hank or
trust company.
Immediately after the closing hour for receipt of tenders on May 21,
1934, all tenders received at the federal Reserve Banks or branches thereof
up to the closing hour will he opened and public announcement of the accept
able prices for each series will follow as soon as possible thereafter, prob
ably on the following morning.
The Secretary of the Treasury expressly re
serves the right to reject any or all tenders or parts of tenders, and to
allot less than the amount applied for, and his action in any such respect
shall be final.
Any tender which does not specifically refer to a particular
series will be subject to rejection.
Those submitting tenders will be advised
of the acceptance or rejection thereof.
Payment at the price offered for
Treasury bills allotted must be made at the Federal Reserve Banks in cash or
other immediately available funds on May 23, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes.
No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction, or
otherwise recognized, for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.
Treasury Department Circular No, 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve
Bank or branch thereof
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS:
May 21, 1934,
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending May 18, 1934:
San Francisco ......... .............. 501,992,80 fine ounces
Denver ..............................
1.316.00
»
«
Total for the w e e k ............. 503,308,80
w
”
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Week ending May 18, 1934;
c ;jà
Philadelphia .......
San Francisco.....
Denver .............
New York ........
Seattle..... ......
New Orleans.......
Total .........
______ Imports
New
Domestic
Secondary
$
13,987.78
12,969.50
51,229.00
5,237,000.00
...
1.780.32
$5,316,966.60
$
393,353.60
$
946,65
143,691.78
1,582,304.65
109,004.00
878,649.00
831,100.00
147,500.00
29,803.43
221,164.13
54f757.17-------------- ----$1,561,709.98
$2,830,564.43
GOLD RECAPITULATION
Imports ..............
Secondary .........
New Domestic ........
Total .............
I
$5,316,966.60
1,561,709.98
2.830.564.43
$9,709,241.01
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended May 1 6 ........ r
Received previously .......
Total to May 16 ...........
Received by Treasurer's Office:
Week ended Mav 16 .........
Received previously .......
Total to May 16 ............
Note:
Gold Coin
$
122,129.86
27.649.077.14
$27,771,207.00
Gold Certificates
$
970,860.00
55.521.510.00
$56,492,370.00
$
$
$
245.994.00
245,994.00
3,400.00
1.520.100.00
$ 1,523,500.00
Gold bars deposited with the New York Assay Office to the amount of
$200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week ended May 19, 1934
$4,000,000.00
TREASURY DEPARTMENT «
Washington
May 28, 1934.
MEMORAHBUM TOB THE PRESS:
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending May 25, 1934:
San Erancisco........ .
Denver ...............
Philadelphia..........
Total for the week
325,500.59 fine ounces
it
tt
157,353.00
H
n
402,202.79
. it
It
885,056.38
RECEIPTS OP GOLD BY THE MINTS AND ASSAY OFEICES:
Week ending May 25, 1934:
P
New
Domestic
Imports_________ Secondary
Denver ..............
39,826.00
New York
....
Seattle ..............
New Or l e a n s ..... .
8,286,500.00
....
9,182,41
348,551.98
123,564.31
96,179.00
834,500.00
27,690.59
55,450.74
Total ............ $8,400,725.16
$1,485,936.62
Philadelphia .......... $
San Erancisco ........
15,121.96
50,094.79
$
$
205.77
777,873.22
567,163.00
31,000.00
162,720.71
_______161.87
$1,539,124.57
GOLD RECAPITULATION
Imports ............ $8,400,725.16
Secondary .........
1,485,936.62
1,539,124.57
New Domestic..... .
TOTAL ........ $11,425,786.35
■ GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended May 23..........
Received previously
^
.
Total to May 23 ....... •
Gold Coin_____
Gold Certificates.
52,927.06
27,771,207.00
$ 27,824,134.06
$
937,810.00
56.492,370.00
$57,430,180.00
1 ,000.00
245,994.00
246,994.00
5,400.00
1,523,500.00
$ 1,528,900.00
$
Received by Treasurer’s Office:
Week ended May 2 3 ....... ..
Received previously .......
Total to May 23 .......
Note:
$
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week ended May 26, 1934
$5,000,000.00
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS.
June 4, 1934.
RECEIPTS OF SILVER BY THE MINTS;'
(Under Executive Order of December 21, 1933)
Week ending June 1, 1934:
San Francisco
....... .
Denver
....... .....................
Total for the week
.... .......
291,335.17 fine ounces
3,676.00
”
M
295,511.17
,f
11
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
i%eek ending June 1, 1934:
New
Domestic
_____ Imports________Secondary
$
15,464.48 $ 259,195.82
3,510.40
Philadelphia......
San Francisco ......
552,519.86
113,429.99
580,907,00
Denver ..................
9,046.00
43,037.00 669,333.00
New York
......
7,394,000.00
803,400.00
52,600.00
Seattle.................
.... 21,743.59
45,312.19
New Orleans ........ _______ 38,100,14_____ 29, 862.14___________ 150»32
Total .... .
$ 8,009,130.48
$1,270,668.54
$1,351,812.91
GOLD RECEIVED RY FEDERAL RESERVE BANKS AND THE TREASURERS OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
(
^
Week ended May 29 ........
Received previously .......
Total to May 29 ......
Gold Certificates
Gold Coin
63,863.62
824,134.06
27,
$
734,660.00
57,430,180.00
$27, 887,997.68
$58,164,840.00
$
Received by Treasurer’s Office:
Week ended May 29 •«..•••»•
Received previously .*....*
Total to May 29 ......
.Note:
$
$
1,000.00
246,994.00
247,994.00
$
10,200.00
1,528,900.00
$ 1,539,100.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
;PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
None for the week ended June 2, 1934.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS:
June 11, 1934.
RECEIPTS OF S H Y E R BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending June 8, 1934:
Philadelphia ,.... ...... ....
San Francisco,.......... ,.....
Denver ......... ........,....
Total for the week.,....
151,272.30 fine ounces
44,284.07 ’*
5,341.00 ft
”
200,897.37 #
»
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
—
Week ending June 8, 1934:
;^ew
______ Imports______ Secondary_____ Domestic-----
Philadelphia •••••......»•
San Francisco........... .
Denver
New York ...............
Seattle
.... .......
New O r l eans........... .
Total for the week....
$
1,448.30
$ 370,967.22 $
2,460.33
1,045,717.06
151,048,72 1,535,440.70
7,650.00
101,265.00
740,453.00
16,100,000.00
602,700.00
108,100.00
.•••
21,133.07
1 29,861.40
....__________ 20,069,47________ 192.61
$ 17,154,815.36
$1,267,183.48
$2,516,508.04
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER’S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended June 6, 1934 .....
Received previously..... ....
Total to June 6, 1934......
_____Gold Coin_________Gold Certificates
$
51,348.26
$
631,760.00
27, 887,997.68______ 58,164,840.00
$ 27,939,345.94
$58,796,600.00
Received by Treasurer’s Office:
Week ended June 6, 1934 ...••.
Received previously...........
Total to June 6, 1934.... .
Note:
$
....
247,994.00
$
18,700.00
1,539,100.00
$
247,994.00
$ 1,557,800.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
TREASURY DEPARTMENT
Washington, D* C.
June 12, 1934.
I
Following is text
Honorable
Speaker,
of
letter transmitted by the Secretary of the Treasury to
John N. Garner, President
House
of
of
the Senate and to Honorable Henry T, Raineyi
Representatives,
’’June 11, 1934,
I transmit with recommendation for its enactment the accompanying Joint Reso
lution which is designed to give to the Secretary of the Treasury additional means
of collecting the full amount of revenue to he derived from distilled spirits, in
I that it affords means whereby a surveillance may be had over the manufacture of
I bottles and other containers of distilled spirits and dealings therein.
Pursuant to the provisions of the Liquor Taxing Act of 1934 practically all of
the taxable distilled spirits go to the consumer in glassware packages. There is at
I present a very large illicit trade in the manufacture of liquorware bottles used by
I illicit manufacturers and dealers in distilled spirits, accompanied by employment of
i|iinitation and counterfeit labels and stamps that is not only resulting in large
I loss of revenue, but is a means whereby important criminal elements are able to seI cure funds for the furtherance of other criminal operations. There are only about
40 establishments in the United States where liquor glassware is manufactured, and
I the manufacturing operation is obviously of such a character that it does not lend
1 itself to concealment, as is the case with the imitation of labels and the counterf feiting of stamps. It is believed that an adequate control of these limited sources
I to the end that the sale and distribution and possession of liquor bottles is limI ited to duly qualified distillers and rectifiers who may manufacture, tax-pay and
I battle distilled spirits under the Revenue Laws, accompanied by supervision over the
[ principal dealers and jobbers, both in new and used liquorware bottles, will deprive
Ithe illicit distillers of the principal means which they now employ of introducing
| untaxpaid distilled spirits into the regular lawful channels of Commerce, The
1 supervision of dealings in used bottles is of importance, as this traffic has
■ reached large proportions and is a direct adjunct of the illicit trade in untaxpaid
spirits.
The consumer who purchases bottled distilled spirits may be entirely unaware
1 0f the fact that untaxpaid illicit liquor of uncertain quality is in the bottle
■ which he purchases, and consumers who purchase bottled liquor in good faith are
■ entitled to adequate protection,
I
The legitimate glassware manufacturers and the duly qualified taxpayers who
piamfacture and distribute distilled spirits are heartily in accord with this pro| posed legislation.
n
Very truly yours,
H. MORGENTHAU, Jr,
Secretary ’’
PROPOSED JOINT RESOLUTION
To protect the revenue hy regulation of the traffic in containers' of dis
tilled spirits.
Be it resolved hy the Senate and House of Representatives of the United
States of America in Congress assembled. That whenever in his judgment such
action is necessary to protect the revenue, the Secretary of the Treasury
is authorized, by the regulations prescribed by him, and permits issued
thereunder if reciuired by him (l) to regulate the size, branding, marking,
sale, resale, possession, use, and reuse, of containers (of a capacity
of less than 5 wine-gallons) designed or intended for use for the sale
at retail of distilled spirits (within the meaning of such term as it is
used in Title II of the Liouor Taxing Act of 1934) for other than industrial
use, and (?) to require,
or
persons dealing in or using any such contain
ers, the submission to such inspection, the keening of such records, and
the filing of such reports as may be deemed by him. reasonably necessary
in connection therewith.
Whoever willfully violates the provisions of any
regulation prescribed, or the terms or conditions of any permit issued,
pursuant to the authorization contained in this Joint Resolution, and any
officer, director, or agent of any corporation who knowingly participates
in such violation, shall, upon conviction, be fined not more than $1,000,
or be imprisoned for not more than
2
years, or both; and, notwithstanding
any criminal conviction, the containers involved in such violation shall be
forfeited to the United States, and may be seized and condemned by like
proceedings as those provided by law for forfeitures, seizures, and
condemnations for violations of the internal revenue laws, and any such
containers so seized and condemned shall be destroyed and not sold.
Any
-
2-
requirements imposed under this Joint Resolution shall he in addition
to any other reauirements imposed hy, or pursuant to, existing law, and
shall apply as well to persons not liable for tax under the internal revenue
laws as to persons so liable*
‘TREASURY DEPARTMENT
FOR RELEASE, MO RUING- PAPERS,
Friday, June 15, 1934
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited
for Treasury hills to the amount of $75,000,000, or thereabouts.
They will
be 182-day hills; and will he sold on a discount basis to the highest bid
ders.
Tenders will he received at the Federal Reserve Banks, or the bran
ches thereof, up to two o^lo c k p. m., Eastern Standard time, on Monday,
June 18, 1934.
Tenders will not he received at the Treasury Department,
Washington,
The Treasury hills will he dated June 20, 1934, and will mature on
December 19, 1934, and on the maturity date the face amount will he payable
without interest.
They will he issued in hearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders he made on the printed forms and forwarded
in the special envelopes which will he supplied by the Federal Reserve
Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
tender must he in multiples of $1,000.
Each
The price offered must he expressed
pn the basis of 100, with not more than three decimal places, e.g., 99.125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorporated hanks
and trust companies and from responsible and recognized dealers in invest
ment securities.
Tenders from others must he accompanied by a deposit of
10 per cent of the face amount of Treasury hills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated
"bank or trust company.
H
¡3
-|
Immediately after the closing hour for receipt of tenders on June 18,
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will he opened and public announcement of the accept
able prices will follow as soon as possible thereafter, probably on the
following morning.
The Secretary of the Treasury expressly reserves the
right to reject ary or all tenders or parts of tenders, and to allot less
than the amount applied for, and his action in any such respect shall be
final.
Those submitting tenders will be advised of the acceptance or re
jection thereof.
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately
available funds on June 20, 1934.
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
No loss from the
sale or other disposition of the Treasury bills shall be allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or here
after imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve
Bank or branch thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS;
18» 1934*
Jvne
BY THE MINTS:
(Under Executive Order of December 21, 1933)
receipts o e s i l v e r
Week ending June 15, 1934; .
San Francisco*...... •
Denver*•*•••••••••••••••
Total for the week:
203.328.36 fine ounces
3,462*00
H
11
206.790.36
"
tt
(UOTE: Corrected figure on total receipts of silver through
June 15: 8,115,000 fine ounces)
RECEIPTS OE GOLD EY THE MINTS MI) ASSAY OFFICES:
Week ending June 15, 1934:
Philadelphia........ .
San Francisco..•••.•••••
Denver*•••••••••••.•••«•
Uew York................
Seattle.••••••..........
Hew Orleans.••••••••«..•
Total.... .........
>.
Secondary
Imports—
$
•••••*
427,858.31
672.00
26,380,000.00
••••••
17,049*02
$26,850,579.33
$
401,109.84
127,678.79
74,232.00
761,300.00
37,575.28
36,073*07
$1,437,968.98
Hew
Domestic
$
220.85
940,986.19
519,329.00
18,700.00
21,262.88
$1,500,498.92
GOLD RECEIVED BY FEDERAL RESERVE B A M S AM) THE TREASURER *S OFFICE:
(Under Secretary1s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended June 13...... •••••
Received previously..•••••••¿«
Total to June 13.••••••..
----G-old Coin----
— Gold Cert ific
127,258.05
27,939,343.94
$
818,410.00
58,796,600.00
$28,066,603.99
$59,615,010.00
$
....
247,994.00
$
$
247,994.00
$
Received by Treasurers Office:
Week ended June 13.•••••••...«
Received previously.
Total to June 13.........
I0TE:
15,900.00
1,557,800.00
$ 1,573,700.00
Gold bars deposited with the Hew York Assay Office to the amount of
$200,572.69 previously reported.
PURCHASES OF GOVERHMEHT SECURITIES FOR DIVESTMENT AC COURTS:
Ho purchases for the week ended June 16, 1934,
•
TREASURY DEPARTMENT
Washington
RELSiSS TO MORNING- PAPERS, JUNE 20, 1934;
Mt only if the Silver Purchase Act shall
have been signed by the President.
J*une 19, 1934.
MEMORANDUM POR THE PRESS:
Regulations relating to the tax on transfers of interests in silver bul
lion were issued today, (June 19) by the Commissioner of Internal Revenue, fol
lowing approval by the President of the Silver Purchase Act of 1934.
The tax section —
section 8 — — of the Silver Purchase Act amends the
Revenue Act of 1926 and the regulations are issued under authority of the 1926
statut e.
The regulations provide substantially as follows:
1«
The tax applies to transfers of interests in silver bullion if the
price for which such interest is or is to be transferred exceeds the cost
thereof and the allowed expenses.
2.
Transfers coming within the scope of the tax include (a) those in the
United States; and (b) those wholly effected outside of the United States, if
(1) either party to the transfer is a resident of the United States, or (2)
either party to the transfer is a citizen of the United States who has been
resident here at any time during the three months immediately preceding the
transfer, or (3) tho silver bullion or interest therein which is transferred
is situated in the United States at tho time tho transfer is made or agreed
to be mado.
3.
The tax applies to transfers made on or after May 15, 1934. Separate
(June 19)
regulations govern transfers completed prior to 9:00 p. m. , /rchen the Act was
signed, and those completed after that time.
-
4.
2
-
The tax applies to transfers to the United States Government except
transfers "by deposit or delivery at a United States mint (a) under the procla
mation of December 21, 1933, relating to the coinage of newly mined domestic
silver, or other like proclamation of the President, or (h) in compliance
with any Executive order which may "bo issued pursuant to section 7 of the
Silver Purchase Act of 1934,
(Sec. 7 authorizes the President to require
the delivery of all silver to the mints.)
Transfers by the United States
Government are not taxable.
5.
The tax is fifty per cent of the amount by which the price for the
interest in silver bullion
transferred exceeds the total of the cost plus
the allowed expenses.
(a)
Price is defined as "the amount of money and/or the market
value of the property other than money received or to be
received by the transferor,
directly or indirectly, in
consideration of the transfer".
(b)
Cost is defined as "the amount paid or agreed to bo paid
therefor by the transferor
in money and/or the market
value of the property other than money exchanged or agr eed
to bo exchanged by him for such interest", except that
there are a number of particular situations governed by
special provisions.
(c)
Allowed expenses include
any usual and necessary ex
penses, such as storage, insurance, transportation and
processing charges^ but not interest, taxes, and charges
in the nature of overhead.
6.
Both parties to a transfer are responsible for affixing stamps in
the required amount, except in case of transfers to the United States Govern
ment and in case of transfers made before 9:00 p.m., June 19, 1934, in which
- 3 -
cases the liability rests upon the transferor*
In any case the liability of
the transferee ceases when stamps are cancelled by the collector,
7,
Persons who transferred interests in silver bullion between May 15,
1934 and the time of enactment of the Silver Purchase Act must file a return
on or before July 18, 1934, reporting the transfer,
8,
Persons who transfer interests in silver bullion after the time of
enactment of the Silver Purchase Act must deliver to the transferee a memo
randum, under oath,giving
the details of the transaction, which memorandum
mast be transmitted to a collector of internal revenue.
If the transfer is
taxable, stamps mast be affixed before delivery of the memorandum to the
transferee,
9,
The regulations provide for abatement or refund of taxes in certain
cases where the profit is (l) realized in the course of the transferors
regular business or furnishing silver bullion for industrial, professional or
artistic use, or (2 ) offset by losses incurred in silver foreign exchange
transactions hedged by the silver on which the profit is realized,
K, B,
Documentary tax stamps to be affixed to silver purchase memoranda
have been supplied to the collectors of internal revenue
TREASURY DEPARTMENT
Washington
MÉMORANDUM FOR THE PRESS:
Following is a copy of a letter sent to all heads of bureaus
and divisions in the Treasury Department:
"June 20, 1934.
Dear Mr.
---
On June 5 I addressed a letter to all employees of the United States
Treasury Department for distribution through the various bureaus and
divisions, directing attention to the provisions of Federal law with re
spect to political activity by Government employees and the solicitation
of contributions for political purposes.
This letter was prompted by the
discovery that in more than one instance persons employed by the Treasury
Department had either violated the law in this respect, or had committed
acts which constituted gross impropriety in view of their official posi
tions. Disciplinary action in several of such cases was found to be neces
sary.
Since distribution of this letter I have received inquiries from
several employees of bureaus and divisions of the Treasury as to the legal
ity and propriety of their continuing to hold office in regular political
party organizations.
I have considered this matter very carefully and I
have come to the firm conviction that no officer or employee of the Treasury
Department ought to continue to hold any political party office.
It seems
to me that the holding of any such political party office is not compatible
with the public interest and will hamper the officer or employee in the
effective discharge of his Governmental duties.
I wish, therefore, that you would send a-circular letter to all of
ficers and employees serving under you in the Treasury Department requesting
those who hold such political party offices to submit their resignations
from such offices, to be effective not later than September 1, 1934, or, if
they so elect, to submit their resignations from office or employment in
the Treasury Department, to be effective not later than the same date.
Sincerely,
(Signed)
H.MORGENTHAU, Jr.
Secretary."
TBEA3URY DEPARTMENT
IFOR RELEASE, MORNING PAPERS,
Friday, Juno 22, 1934
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amoimt of $75,000,000, or thereabouts.
They will be 182-
day bills; and will be sold on a discount basis to the highest bidders.
Tenders
will be received at the Federal Reserve Banks, or the branches thereof, up to
two o*clock P.M,, Eastern Standard time, on Monday, June 25, 1934,
Tenders will
not be received at the Treasury Department, Washington,
The Treasury bills will be dated June 27, 1934, and will mature on December
26, 1934, and on the maturity date the face amount will be payable without
interest.
They will be issued in bearer form only, and in amounts or dononi-
nations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve Banks or branches
upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000,
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e.g., 99,125.
Fractions
must not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment se
curities,
Tenders from others must be accompanied by a deposit of 10 per cent
of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour for receipt of tenders on June 25',
1934, all tenders received at the Federal Reserve Banks or branches thereof up
-
2
-
to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning*
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final* Those submitting
tenders will be advised of the acceptance or rejection thereof.
Payment at the
price offered for Treasury bills allotted must be made at the Federal Reserve
Banks in cash or other immediately available funds on June 27, 1934*
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes.
No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction, or
otherwise recognized, for the purposes of any tax now or hereafter imposed by
the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre~
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve Bank
or branch thereof,
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS
June 22, 1934.
Amplifying the statement concerning the issue of silver certificates,
it was pointed out hy Treasury officials that apparently some confusion exists
because of a failure to distinguish between, on the one hand, the basis on
which or the ounceage of silver against which silver certificates may be
issued and, on the other hand, the dollar amount of silver certificates to oe
issued.
As to the first matter, vi2 .T the ounceage of silver that must be
placed behind any given dollar amount of silver certificates, it was stated
that silver certificates now or hereafter issued must be secured 100 $ with
silver, in the form of coin or bullion, valued on the basis of $1.29 an ounce.
Silver certificates have been issued on this basis for over a half a century.
Stating the matter another way, each dollar amount of silver certificates has
and will have bach of it either one coined silver dollar or the amount of
silver bullion necessary to coin a dollar, to-wit 412|- troy ounces of standard
silver or 371-J- grains of fine silver.
As to the other matter, viz.. the dollar amount of silver certificates
to be issued, under the Silver Purchase Act of 1934, the Secretary of the
Treasury is required to issue silver certificates of a dollar amount equal to
the cost of the silver purchased under Section 3 of such Act,
This Act, in
addition, authorizes, brut does not require, him to go further and issue a
dollar amount of silver certificates equal to the monetary value of the silver
so purchased, which monetary value is fixed by law at $1.29 per ounce.
Thus if
a thousand ounces of silver is purchased at a cost of $450, the Treasury is re
quired to issue $450 in silver certificates, but may issue $1,290 in such
certificates
TREASURY DEPARTMENT
Washington
MEMOBANUJM RPR THE PRESS:
J ^ e 25, 1934,
receipts o e s i l v e r b y t h e m i n t s ?
(Under Executive Order of December 21, 1933)
Week ending June 22, 1934: . . . .
P h i l a d e l p h i a . . , . . , - , , 275,423,75 fine ounces
San Francisco,.... .,*••»•«»*».%
2,628.30 11
Denver......... .
103,480.00 «
11
Total for the week..••...... 380,532.05 H
11
Corrected figure on total receipts of silver through June 22: 8,495,000 fine ounces.
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
---- — ,
_
‘
Week ending June 22, 1934:
New
_______Imports___________ ,Secondary________Dom£fjl £
Philadelphia..•••••.
San Francisco.......
Denver.
New York«.,,.. « ..
Seat tie o
New Orleans»«o......
$
321,043.57
59,826.00
4,175,850,00
210.35
284,999.37
123,246.53
116.514.00
763.650.00
23,660.11
25,705.88
Total..«..«......
$4,556,929.92
$1,337,775.89
$
393,61
993,941.83
650,018.00
42,500.00
349,556,34
_______190,57
$2,036,600.35
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURERS OFFICE:
(Under Secretary's Order of December 28, 1933)
Received by Federal Reserve Banks:
Gold Coin__________
Gold Certificates
Week ended June 20..........
Received previously.........
$.
52,507.58
28,066,603.99
Total to June 20.• ••••
$28,119,111.57
$
837,790.00
59,615,010.00
$60,452,800.00
$
$
Received by Treasurer^ Office:
Week ended June 20.....••• ••
Received previously....•••»•
Total to June 20,••••*
Note:
$
1,200.00*
247,994.00
249,194.00
17,600.00
1,573,700.00
$ 1,591,300.00
Gold bars deposited with the New York Assay Office in the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
No purchases for the week ended June 23, 1934,
TREASURY DEPARTMENT
FOR RELEASE, MORNING PAPERS,
June 25, I93 U.
Note;
For full text see Subject Files
Construction
FOR RELEASE, MORNING PAPERS,
Wednesday, June 27, 1934.
treasury d e p a r t m e n t
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited
for Treasury hills to the amount of $75,000,000, or thereabouts.
They will
he 183-day bills; and will be sold on a discount basis to the highest bid
ders.
Tenders will be received at the Federal Reserve Banks, or the bran
ches thereof, up to two o !clock p. m., Eastern Standard time, on Friday,
June 29, 1934.
Tenders will not be received at the Treasury Department,
Washington.
The Treasury bills will be dated July 3, 1934, and will mature on
January 2, 1935, and on the maturity date the face amount will be payable
without interest.
They will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by the Federal Reserve
Banks or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
tender must be in multiples of $1,000.
Each
The price offered must be expressed
on the basis of 100, with not more than three decimal places, e.g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in invest
ment securities.
Tenders from others must be accompanied by a deposit of
10 per cent of the face amount of Treasury bills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated
tank or trust company,
-
2
-
Immediately after the closing hour for receipt of tenders on June 29*
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will be opened and public announcement of the accept
able prices will follow as soon as possible thereafter, probably on the
following morning*
The Secretary of the Treasury expressly reserves the
right to reject any or all tenders or parts of tenders, and to allot less
then the amount applied for, and his action in any such respect shall be
final.
Those submitting tenders will be advised of the acceptance or re
jection thereof.
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately avail#*,
able funds on July 3, 1934.
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
No loss from the
sale or other disposition of the Treasury bills shall be allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or here
after imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve
Bank or branch thereof,
TREASURY DEPARTMENT
Counsel of the U. S. Treasury Department, before the Ninth Annual Meeting of
the Federation of Ear Associations of Western New York, at Niagara Falls, N*Y*,
on Saturday, June 30,^1934*
*
CHANGES
IN
TREASURY
TAX
POLICY
Among the most controversial and vital problems of the com
ing years are those relating to taxation*
Lawyers will further
impair their already declining leadership if they fail to bring
disinterested and intelligent influence to bear upon the economic
and legal questions involved*.
He is blind to coming events, who fails to see ahead a heavy
and growing tax burden*
This nation, like every organized govern-*
ment, has shown a constant expansion of functions and a tax rate
that, whatever the promises, shows a steady upward curve.
Emergency
expenditures caused by the economic collapse and the cost of our
economic reconstruction, have already lod Congress to direct a
special inquiry into the operation of our tax laws and into new
sources of revenue*
All political parties have found the power of taxation a
powerful control device*
The ,!prolectionistsH found a tariff
taxation a powerful, quidk and certain means to divert wealth
from its ordinary economic channels and to concentrate it m
hands of "infant industries".
the
How an opposed group seeks to use
the same power to a different end, to equalize incomes and to re
distribute concentrated wealth.
Whether or not they accept either of these extreme positions, .
all governing groups find taxation a powerful measure of regulation.
Liquor taxation is an old example.
More recent examples are pro
cessing taxes and compensating taxes under the Agricultural Adjust
ment Act, and the now tax on the transfer of firearms and machine
guns, really designed to help suppress crime, and tho new 50# tax
on silver profits designed to prevent speculators from growing rich
on tho government's silver policy.
The impact of a tax law is not
wholly absorbed by the field of trade and finance{ it jolts the
whole social order.
Ho more than casual examination of our federal, state and local
tax structures is necessary to convince you that tax laws are too
often changed, too immaturely thought out, that they are simply a
patchwork put together by compromises among contending groups.
Private groups seek special advantages or seek to avoid burdens,
and different governmental agencies, federal, state and local,corn
pete with each other to get necessary revenues without unfavorable
political results.
It brings despair to those who seek a scientific and equitable
tax system that there is nowhore visiblo a group that is at once
informed, influential and unselfish.
With fow and notable exceptions
*■*
3
—
the men who throng national and state capitals when tax laws are
being revised, who provide the information or misinformation, and
the 11sentiment11 that presses laws through, are each agents of a
special cause#
Whatever proposals may he made hy the Treasury, or
by such agencies as New York Statels excellent tax department, or
by special committees, no scientific and equitable tax system can
over become law until there is developed a strong body of sentiment,
sustained by informed opinion and powerful enough to override the
contenders for special advantages#
Bar associations could, if they
but would, contribute powerfully to this cause, but frankly, it seems
hopeless to count on most bar associations for much contribution to
governmental, economic, or social science unless intellectual inertia
be counted a contribution#
Your program today, considering taxation from several angles,
is a hopeful sign#
The Treasury is making extensive studies of the
operation of tax laws hero and abroad, welcomes discussion of poli
cies,and will gladly cooperate with its resources of information,
statistics and experience with groups everywhere to build up public
interest in and information about the tax problem without ,howevor,
becoming a party to any group interest propaganda#
Meanwhile, without awaiting more perfect tax laws, we must im
prove the administration of the one we have*
No workable scheme for
decentralizing the federal tax assessing function and spreading it
into the several states or regions, has yet been devised*
Centralis
ing the function in Washington, to cover our vast and complex national
•* 4
—
economy, necessitates a vast machine in the Treasury Department
which,under the name ’’Bureau of Internal Revonué1 jhas much more
importance to taxpayers than they generally realize«
Kinds and rates of tax, "broad principles of application and
the main outline of procedure, are determined "by Congress«
Bat
upon the Congressional skeleton, the flesh that makes the living
figure is added "by Treasury Regulations and Decisions, by General
Counsel*s rulings and, last but not least, by the administrative
attitude of the bureau in individual cases«
The extent of Bureau
power may be realised from the fact that Congress refrained from
enacting a statutory reduction of depreciation rates upon assurance
that the Commissioner, simply by administrative regulation and dis
allowance of unreasonable claims for depreciation allowance, would
add $85,000,000 to the revenues*
The supervision of this vast power, the now administration
has committed to a direct thinking and dynamic Secretary of the
Treasury«
The democratic party, long cast for the role of opposi
tion and criticism, from which it has made but brief and widely
separated ventures into national administration, has developed more
prominently men whoso talents wore adapted to opposition, such as
orators, reformers, critics, political philosophers«
It lias not
had necessity or opportunity to devolop so many executives'except
on the narrower state—wide scale«
But in the Treasury, particularly,
and I think in all other Departments as well, seal for reform, and
a philosophy of progrès sivism is not enough to make the ulTew Deal*1
effective. The administration mast still face the test of adminis1
trative cqpapetency. It must execute with fidelity the designs it
has conceived. It must steer between the twin dangers of yielding
itself to patronage pressure on the one hand, and of having loyalty
undermined and its work sabotaged by retaining unsympathetic al
though technically equipped reactionaries. It must handle stagger
ing sums of money without scandal or waste. As the emergency re
cedes and more normal times resume, the emphasis will shift more and
more to a plain test of administrative capacity. There is a certain
determination in the Treasury, most noticeable in Washington, that
by this test, the Treasury shall not be found wanting.
John Stuart Mill has said:
nThe disease which afflicts bureaucratic governments,
and which they usually die of, is routine. They perish
by the immutability of their maxims; and, still more by
the universal law that whatever becomes a routine loses
its vital principle, and having no longer a mind acting
within it, goes on revolving mechanically, tho the work
it is intended to do remains undone."
Short contact will verify the deadly tendency of the Hevenue
Service to "become routine", to "lose its vital principle" and to
"go on revolving mechanically" while a great volume of work accu
mulated. Moreover, the "immutable maxims" of the Bureau were laid
down and the routine pretty much cast in the reckless days of rising
markets and declining prudence which preceded the crash. Wild dis
regard by taxpayers of their own expenditure, shameless exploitartion of stockholders by corporation executives through salary and
bonus and reorganization devices, were the order of that day.
The
whole atmosphere of financial laxity and horse trader ethics which
prevailed in the business world could not fail to have its reflec
tion in the government service.
The age of $8 bootleg liquor, of
watered holding company stocks, of fabulous stock irarket profits on:
paper, which became the basis of private cash extravagance, was also
the age of big depreciation allowances, approval of wash sales, easy
compromises of taxes.
In an ora when, as we now see, not one of us
took real heed of his own interests, could it be expected that the
interests of the government would be more strictly guarded?
Different times have taught different standards to business and
government.
To reanimate the service, to make the non-Civil Service officials
give undivided allegiance to the government and to break up the prac
tice of generations by which the collectors of taxes were also collec
tors of political assessments, to overcome also the inertia and ob
structive spirit of those who are entrenched in the Civil Service, to
guard against favoritism or advantage, to stop the holes poked in
the law by clever lawyers in aid of powerful clients, is the task
bequeathed to this administration.
Such is the task for which those
working in the new administration generally have been decorated with
the title ’’misguided bureaucrats, who ignore history” by that superb
anthology of platitudes and epithets recently promulgated as the
’’Republican Declaration of Policy,”
The income tax law is citizen-administered in the first in»*
stance*
The individual citizen reports his transactions, confesses
his income and even makes the computation and assesses himself the
amount of his tax*
In applying a technical law which few have read,
and voluminous regulations known to fewer, and opinions and decisions
some of which are not even published, errors will he made »differences
of opinion will arise*
In spite of some widely reported cases of tax evasion, I am
convinced that the honor of the taxpayer has not failed hut that it
is, and always must ho, the greatest force in income tax collection*
Looking at a cross section of the work of 1933, and using even thouf
sands, 4,798,000 taxpayers filed returns, the government claimed
deficiencies against 85,000 and admitted over-assessments against
45,000»
In that year, after all negotiations were over, the govern
ment issued 17,700 deficiency letters and taxpayers took 6,597 appeals
Settlements are reached without trial in about two-thirds of these
appealed cases*
I claim no finality for statistics in matters of this kind*
Discovered understatements of income may he no measure of those un
discovered*
Grievances appealed may he no measure of grievances
borne, because of weariness or inability to finance further protest.
But for whatever they are worth, the statistics do show annually only
about 2,000 actual litigations, and differences of opinion were even
tually reconciled, except in cases numbering about l/2 0 of 1 $ of re
turns filed.
If there be any general disposition by taxpayers to
hold out on the government or by government to harass taxpayers, it
is not capable of statistical proof*
-*
8
—
There was a tendency in the "bureau upon creation of thp Board
of Tax Appeals to claim the greatest possible tax and let the Board
go into the evidence carefully for the first time and determine the
tax.
Such a policy of tax assessment by litigation was probably
never intended by Congress but it came near to being the result.
Changes in procedure and organization of the Commissioner's office
to overcome that tendency have been made.
The Commissioner, before
sending a deficiency letter to any taxpayer, makes careful audits
and field investigations, holds conferences with the taxpayer or
his counsel and makes every effort to act only upon full informal
tion and consideration.
Such a policy, though not yet fully re
flected in pending cases, has contributed largely to the falling off
in number and percentage of appeals taken.
Of course the government will always be obliged to litigate
many cases.
Taxpayers are better informed and often have better
access to sources of evidence than the government*
The Bureau must
often assert the tax on doubtful points of law in order to obtain
guiding decisions.
If administrative officers concede the point,
the revenues have no redress, while if it is asserted in error the
taxpayer has remedy.
But we do aim at substantial improvement in
the percentage of government success through more careful analysis
of cases before trial.
Delays in hearings invite appeals to obtain time.
Delay results
in heavy losses to the revenues through insolvency, dissipation of
assets and devices to defeat collection.
- 9 -
Steps to clear calendar congestion were early taken«
refusals of postponements ‘
brought cases on«
Rigid
Conferences with tax
payers and counsel result in agreement on some and often on all
issues when the date of trial is near at hand«
operating by working at top speed«
16,902 cases and June lj
June 1*
The Board is co
1933, saw pending
1934 saw them reduced to 11,099, of which
1944 have been tried and are under submission or awaiting decision,
thus remaining to be heard 9,155«
At the end of May, 1933, pendf
ing litigation before the Board involved $776,800,000, and at the
end of May this year it was reduced to $442,600,000*
These figures are prophetic of a not too distant day when de
lay will no longer vex or advantage the taxpayer«
Compromise of tax, penalties or interest liability to the
government is considerably restricted*
Congress has given tax lia
bility a preference as to assets and priority of payment over general
creditors of the taxpayer, and has provided that the liability is not
to be discharged by bankruptcy«
Those provisions, to our minds,
point to a policy of strict collection«
It is our understanding that the power given to the Secretary
of the Treasury to compromise, is lawfully exercised only where there
is doubt as to the liability of the taxpayer or the collectibility of
the tax«
Regardless of former policies, wo now hold that on undis
puted liability, which by reason of the preferences, or lien provision
of the law, is actually collectible, presents no case for compromise,
oven though the taxpayer is embarressed or insolvent«
We compromise
-
10
in the same circumstances, and only to the same extent that a good
banker does — - we compromise only when we cannot collect.
Compro
mise because of alleged "equities” or reasons of "public policy" are
no longer considered.
It is urged that this rule is severe
have yet to learn of a tax that does not.
and causes hardship.
I
A tax that is only col
lected from those who find it convenient to pay is not a tax; and
few taxpayers live who cannot rnaake out a case of hardship.
Ta^P3^®**3
often neglect to set aside reserves to pay income tax and then use
their improvidence as a club to compel compromise lest a business
i
be closed or employees deprived of work, or other creditors pre
judiced or credit injured.
Too often these claims are not true
or
are exaggerated by the taxpayer who wishes to blame the government
for a failure that would have happened even if there never had been
an income tax.
A liberal compromise policy which waives the claims of the
Treasury for consideration of "public policy" or hardship is in>possible of administration without creating a favored class of tax
payers, and without creating many real discriminations, which give
rise to stories of compromise by influence and partiality.
It shifts
the burden of the taxpayer who lias not provided for the claims of
his country upon those who have, keeps the improvident in competition
with the sound, fills the revenue bureau with taxpayers and attorneys
crying for special favors and too often getting them.
Meanwhile,
the taxpayer who seeks no special favors but makes every sacrifice
to meet his own burden, has shoved onto him also the burden of those
-
relieved on claim of
hardship .
11
-
If the present policy seems severe,
let it have credit for "being impartial.
Refunds and abatements of tax are made in those cases where
it is apparent that the taxpayer has overpaid or has been over
assessed,
Ho allowance is made unless it is clear that the taxpayer
has a case which he could establish in court,
Nothing has contributed so much to criticism of Treasury policy
as public misunderstanding of the published figures on refunds and
abatements.
There are some cases where the taxpayer has overpaid by reason
of his misunderstanding of the tax law or where an excessive amount
has been collected by action of the Bureau,
It would be a shabby
Government that would not correct such mistakes.
These refunds are
carefully audited and investigated and subjected to the examination
of the Congressional Joint Committee on Taxation where the amount
exceeds $75,000.00.
There are cases where the statute of limitations is about to
expire, or for some other good cause the tax liability could not be
carefully investigated in the time permitted.
In those cases, to
protect the interests of the Government, an assessment of the maximum
possible amount has been made, with the result that a more careful
auditing frequently obliges the Bureau to make abatement because the
amount is overstated.
Under the estate tax law, estates receive certain credits upon
their Federal taxes for amounts paid to the State.
These are
pub-
12
-
-
lished as refunds or abatements, when as a matter of fact they are
not refunds at all in any proper sense of the word, and their pub
lication under this heading is misleading.
Such credits are allowed
by law; the Bureau has no option about it and they do not ordinarily
involve a repayment of money.
They simply lessen the amount due to
tho Federal Government.
Another class of cases causes misunderstanding.
actual case as an illustration —
To use an
a deficiency of approximately one
million dollars was assessed against a corporation.
Because it made
a joint return with affiliated companies some seventy other companies
were also liable.
The same tax was assessed against each of them.
Therefore seventy million dollars of tax was written on to the books
of the Government, although, only one million dollars was ever due,
but each and any one of the seventy taxpayers was liable for it.
The same thing happens in the case of transferees where the transfer
of a taxpayer’s assets without the payment of the tax may make many
transferees liable, and the full amount of such tax is assessed
against each, although one payment discharges the entire liability.
The result is that when one pays, there must bo an abatement or write
off of the tax as against all of tho others.
ing produces an absurd result.
The method of account
If a private banker kept his books
on such a basis, he would be accused of inflating his assets, and
properly.
Yet the impression is given out that some one has been
relieved of a tax, when in fact the amount was never owing except
secondarily, and was paid by the primary debtor.
* 13 -
The answer to the question whether refunds and abatements are
made is Yes, provided the taxpayer can prove by clear and convinc
ing evidence that he is entitled to them, and that he would get
them in court anyway.
The policy is a strict and somewhat technical
one.
Criminal prosecutions for fraud are recommended by the Treasury
where evidence indicates, in the language of the statute, “fraud
with intent to evade tax.“
Ihile the present Treasury policy toward fraud is more severe
than in times past, it is not as has been portrayed, an undiscrim
inating severity.
Its procedure now, as heretofore, is designed to
avoid groundless prosecution as well as to assure deserved ones.
TUfhon a deputy or agent suspects a fraud, the investigation is
taken over by the experienced investigators of the Intelligence Unit.
It is the invariable policy of that Unit to give the taxpayer an op
portunity to present his version of the facts and his arguments in
defense of his conduct.
The history of that Unit shows that of the
suspected cases investigated, it has recommended prosecution in
about 25$.
This recommendation goes to the Genera! Counsel’s Office, where
it
and the record
are reviewed by experienced lawyers of the Penal
Division, to make sure the evidence meets legal requirements.
payers are again heard often, in person and by counsel.
Tax
This review
is not merely formal, for only 51$ of the cases received are referred
out to the Department of Justice for prosecution.
- 14 -
Che result of this care has "been, over the years, a record of
unparalleled success.
Of the cases recommended by the Treasury ¿or
prosecution, conviction or pleas of guilty have been had in 93.27$,
Those prosecuted have included public officials, movie actors, lawyers,
business men and racketeers.
They include those listed as public
enemies, like A1 Capone of Chicago and Waxey Gordon of New York, and
also men of such influence as to be able to call as character wit
nesses the Governor of a State (not New York) and Mayor and a former
Mayor of a great city.
The effect of a conservative policy of pro
secution. with a large percentage of success was well expressed by
a Los Angeles paper upon the collection of $75,000 in taxes and coi>*
viction of a magician with the stage name ’’The Man Who Knows.”
The
headline read ’’Man Who Knows All Learns It does not Pay to Fool with
Internal Revenue Department,”
The Treasury will not break down this
wholesome respect of groundless recommendations for prosecution,
I wish also to make plain that no collector »deputy, or revenue
agent whatever has authority to threaten any citizen with prosecution
in order to compel agreement with proposed tax changes.
No prosecu
tion will be permitted or threatened for a difference of opinion, nor
to punish a taxpayer who asserts what he believes to be his rights,
oven if the Department disallows his claim.
We make no recommenda
tion for prosecution and ( except for rare jeopardy assessments) no
assertion of a ffaud penalty except after hearing the taxpayer's side
of the case, after careful investigation of what he claims to be the
facts and after careful sifting of the evidence by experienced lawyers#
- 15 -
The principal changes in Bureau policy as related to criminal
cases
are involved in the treatment of voluntary disclosure and tax
sale or ’’wash sale’1 cases.
The taxpayer who has committed a fraud, and does not sleep well
o 1nights, either because of conscience or more likely because of
the activities of revenue agents, can no more buy his peace by volun
tary disclosure and mere payment of the tax.
He must now also pay
the civil penalty of 50$ of the tax and the interest at 12 $ as fixed
by the law if ho would be excused from criminal prosecution.
Con
fessions are still heard but penance is more fitting the offense.
More than a few citizens can testify that tax frauds are very un
profitable and that from the government few secrets are hidden.
Sales of securities to establish loss have given rise to many
charges of fraudulent practice, and the policy of the Treasury in
reference to them has abruptly changed.
Of course a good faith sale,
resulting in a complete separation of the taxpayer from the owner
ship, benefit, and control of a security and resulting in a loss, is
the basis for a deduction.
Less than this raises doubt and may, in
some circumstances, be fraud.
The Treasury now treats trick stock
sales the same as any other kind of fraud.
One would be rash to attempt to define the boundaries of fraud.
It does not include good faith difference of opinion as to facts, or
as to their legal effect.
It does include all deliberate and inten
tional acts or omissions, and every trick, artifice, and pretense
which results in a deception or material concealment.
Between these
-
16
-
two extremes appearances often exist which men of good faith and
honest dealing are careful to avoid and others allow at their peril.
Questions arising in the minds of taxpayers were answered "by
their lawyers, such as these:
"Can I sell to my wife?"
torms?"
"Can a sale he made upon credit
"Can I buy it hack having once sold it?"
Then the taxpayer and the sharp practicing lawyer attempted to
combine all of these elements into one transaction and omitted entire
ly the ever present requirement of good faith,
their wives that the wives never knew about.
M-en made sales to
In some instances/large
blocks of securities were sold to a secretary of no means and small
income, who put up no money and never knew that she owned the property.
Deductions were claimed for mere bookkeeping entries, and for trans
actions that were no nearer real sales than the moving of securities
from one safe deposit box to another.
We hold that only sales which are sales may be the basis for
a deduction, and any sale that is a trick to present the appearance
of sale, without its substance, is a fraud.
Taxpayers who had come to accept the tax sale as an approved de
vice, or who on past experience or bad advice had come to rely on
Treasury approval of such attempts to reduce taxes, now find them
selves in an embarrassing position.
But no one can acquire a vested
interest in tax evasion.
Tax lawyers are a necessity because tne tax law and regulation
and their application present technical and controversial questions.
It is the policy that the taxpayer who employs no counsel shall receive
- 17 -
fair and equal treatment.
But most taxpayers feel insecure without
their own advisers, and a tax har with many honorable and able
members presents cases to the Bureau, the General Counsel’s office,
the Board of Tax Appeals, and to the courts, with skill and fidelity
to the ideals of our profession.
But they are not alone.
The shyster tax lawyer, like his blood
brother in other specialities, challenges the profession as well as
the Treasury,
However apt the public may be to blame the whole pro
fession for the delinquencies of the few, we know that the legal
profession collectively has less control over the conduct of its
individual member than does the bricklayer’s union over the conduct
of bricklayers, or the Railway Brotherhoods over the conduct of train
men.
To prevent or punish lawyer misconduct,we are unable to rely
upon any established discipline by professional associations.
Splenr-
did as are isolated examples of Bar Association activity in dealing
with professional misconduct, the associations really effective are
few and local.
State and National Bar Associations are usually with
out the implements and too often without the motive or the will to be real
governing professional bodies.
If we dealt with lawyers alone, the
problem of discipline would be left on our door step by the profession’s
default.
But the problem is complicated because departmental practice is
not limited to the legal profession.
Many lawyers avoided tax prac
tice and in some sections that field was almost abandoned to the
accountant.
Upon many occasions justice requires that the taxpayer
-
18
-
be allowed representation by an employee, or an agent, who is neither
lawyer nor accountant.
From this mixed bar of lawyers, accountants an€ agents, arc ex
perienced two principal difficulties.
One is the lawyer whose bid
for business is some slick scheme to outwit the Treasury and evade
tax.
Conservative and honorable lawyers, whose habit has been to
advise clients against tricks and deception to evade taxes,have seen
their clients taken away by the solicitation of sharp practitioners
who claimed to have safe schemes of evasion.
The lajryer got the fee,
the client, who signed the return, thought he had closed up a sharp
deal with the government.
His harvest of grief was a long time
maturing, for the government moves slowly, and the conservative
advisor’s business meanwhile slipped into the hands of the solicit
ing competitors.
The second evil is the lawyer, also usually a solicitor, whose
bait is the claim of political or personal influence, or inside know
ledge not available to general practitioners.
It would be rash to say that no case was, or is, or shall be
helped by political influence or personal relations.
as my general observation —
But I give it
and my bureau connection is so brief
that I have hardly become defensive minded, that the statement is
hardly self serving —
that if a taxpayer wanted to prejudice his case
the most certain method would be to employ a political lawyer, not
ordinarily connected with his business and obviously employed for his
prominence and alleged influence.
It arouses resentment in the
honest official, and puts even a weak or unfaithful one on his guard.
If the public understood that it pays such men extravagant fees only
to have cases subjected to suspicion
and double check, the political
lawyer’s sucker list would be gratly diminished.
I can give no
better advice to those in trouble with the Bureau, than to say "Don’t
underestimate the integrity of the men you deal with."
James M.
Beck, unsparing in his criticism of the Federal Government says,
"I state as my belief that while today it is too complex, and need
lessly large, yet in integrity it need yield to that of no other
nat ion. "
The Treasury administration is determined that its responsi
bility for the character of the Treasury bar shall be discharged
with strictness and vigor.
Regulations are to be revised, enroll
ment will be granted only after searching investigation by the
Intelligence Unit and disbarment will be freely used where offenses
against fair dealing are revealed,
A pronounced stiffening of the
disbarment policy is already noticeable to one who follows the course
of events in the department.
It is possible that enrollment for an indefinite period will
be abolished and enrollment for not to exceed three years substituted
so as to insure revision of the list and fresh scrutiny of the bar at
stated intervals.
Also every one who advises a taxpayer in the preparation of his
tax return must now be named in the return.
fixed at the time the return is made.
Responsibility will be
It cannot be later shifted on to
a lawyer who has obligingly died, nor can an honest advisor bo blamed
for schemes lie never advised.
-
20
-
In dealing with, this troublesome problem of maintaining a
T re a s u ry Bar of lawyers, accountants and agents of high standards
of ethics and intelligence, it is the purpose to avoid all unneces
sary suspicion toward and vexation of those who would practice be
fore the department.
In framing new regulations and in their en
forcement, there will be three purposes in mind.
First,
To protect against fraud and waste, the subject of its
special trust, the revenues of the United States,
Second.
To protect the taxpayers against dishonest or tricky
advice which leads them to trouble and controversy.
Third.
To protect honorable lawyers who give clients faithful
advice, against the unfair competition of slickers whose stock in
trade is fraudulent practice or false claims of influence.
The Treasury never has, and probably never will, rank as a
popular or even a well understood department of government .
But in
those last two troubled years, when the credit of almost every bank,
every business and every municipality trembled, the Treasury of the
United States has stood almost solitary in its unshaken credit.
Tho
present tax policies of the Treasury are dictated by a high sense
of responsibility for tho integrity of the revenue system upon which
economic existence
as well as economic reconstruction depend.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS.
July 2, 1934.
The following summary of the Government’s "brief in the Charles E. Mitchell
tax case before the United States Board of Tax Appeals is issued for the con
venience of the press and is not to be quoted as a Treasury statement:
The Government today filed with the Board of Tax
Appeals its brief in the Charles E. Mitchell tax case.
seeking to collect $1,275,644
The Government is
taxes and penalties for 1929 and 1930.
The case was tried before the Board of Tax Appeals
in the week beginning April 30, 1934, before a division of the Board consist
ing of Hon. Jed C. Adams, William C. Landsdon and Ernest H. Van Fossen.
Mitchell
and
other witnesses testified.
In the brief filed today, the Government showed
that although Mitchell had an income of about three and one-half million
dollars in 1929, he paid no income tax for that year, and that in 1930 he
had an income of over three-quarters of a million dollars and likewise
paid no tax for that year.
The Government contends that the sale of 18,300
shares of National City Bank stock which Mitchell claims he made to his wife
in December, 1929, was sham and fictitious and that Mitchell’s acts in claiming
on his income tax return a deduction of $2,872,305
as a loss resulting from
such sale constituted fraud with an intent to evade the payment of taxes.
It is pointed out that When Mitchell says he sold the stock to his wife for
over $3,800,000,
her total assets were less than one million;
that she never
paid any cash for the stock and never received the stock which was at all times
held by J. P. Morgan & Company as collateral for a loan to Mitchell,
In 1932,
when Mitchell was insolvent to an amount in excess of three million dollars,
be bought back stock from his wife at the original ’’purchase price” of $212
-
although, the market was then $45.
2
-
Attention is called to the fact that when
Mitchell was a witness before the Senate Committee on Banking and Currency, he
admitted that the sale *as merely Ha sale of convenience”.
The Government also
claims that a like sale in 1930 of 8500 shares of Anaconda Copper stock was like
wise fraudulent and that the sum of $666,666.6? received by him from the
National City Company’s Management Fund in July 1929 was income and that
his failure to report this money in his income tax return likewise constituted
fraud.
The Government claims that Mitchell arranged it so that the Board of
Directors of the National City Company took action which permitted him to
treat this large payment merely as an advance, to be repaid only out of future
payments from the Management Fund,
At a later date Mitchell received $50,000
from the Management Fund and had his salary increased b^ $50,000
a year,
tut nevertheless did not repay any of this so-called advance, and the National
City Company took no steps to collect payment from Mitchell.
Mitchell has contended that his acquittal in the
criminal case charging him with attempt to evade the payment of taxes pre
vents the Government from collecting the tax.
The Government argues that
different-, questions were involved in the criminal trial and that the acquittal
does not prevent the Government from collecting what is justly due to it.
The acquittal in the other trial showed merely that the Government was unable
to prove beyond a reasonable doubt that Mitchell had been guilty of a crime*
The question before the Board of Tax Appeals in the present case is whether
Mitchell’s acts were a fraudulent attempt to escape payment of taxes, and
no punishment is sought in this proceeding which is merely the Government's
normal steps to collect taxes due to it.
The Government’s brief today was filed on behalf of
Commissioner of Internal Revenue Guy T. Helvering by Robert H, Jackson,
Assistant General Counsel of the U. S. Treasury for the Bureau of Internal
Revenue as Attorney for the Respondent.
The following are listed as M0f Counsel for the
Commissioner11:
Edward S. Greenbaum and Thomas E. Dewey, Special Assistant
to the Attorney General, and Nathan Gammon and James D. Head, Special At
torneys for the Bureau of Internal Revenue.
Mitchell*s brief is to be filed July 30th.
after the cases will be decided by the Board of Tax Appeals.
There
TREASURY DEPARTMENT
Washington
.
MEMORANDUM FOR THE PRESS:
July 2, 1934.
receipts o f s i l v e r b y t h e m i n t s :
"
(Under Executive Order of December 21, 1933)
Week ending June 29, 1934:
San Francisco.••••••••••«..•«.• 62,950.61 fine ounces
Denver . • • • • * • • • •
1,096.00
Total for the week
64,046.61
H
11
Corrected figure on total receipts of silver through June 29 : 8,560,000 fine ounces
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
-- —-------------- *---—
—
1
Week ending June 30, 1934:
Philadelphia.
San Francisco.......••
Denver.•••••••••••••••
New York.••••••••••••«
New
Imports
è
Secondary------Domes.
t—
$
.....
1,906.27
365.00
14,042,000.00
Seattle...............
18,996.40
New Orieans...........
$14,063,267.67
$
389,408.00
30,146.77
20,767.00
435,900.00
20,977.32
54,501.29
521,941.92
354,435.00
19,900*00
206,214.58
385.72
951,700.38
$1,102,877.22
GOLD RECEIVED PY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretaries Order of December 28, 1933)
Gold Coin
Received by Federal Reserve Banks:
Week ended June 27..•••••••«.
Received previously.••••••••.
Total to June 27...••••«
$
43,234.74
28,119,111.57
$28,162,346.31
Gold Certificates
$
861,980.00
60,452,800.00
$61,314,780.00
Received by Treasurer’s Office:
Week ended June 27...•..•••••
Received previously........^.
$
•••••••
249,194;00
Total to June 27........
$
249,194.00
Note;
$
10,600.00
1,591,300.00
$ 1,601,900.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week ended June 30, 1934:
$500,000
TREASURY DEPARTMENT
Washington
RELEASE, AFTERNOON NEWSPAPERS,
Wednesday, July 4, 1934._____
7-2-34
Press Service.
The United States Treasury Department has 193 buildings already
under construction as part of the Treasury construction program, it was
announced today.
These buildings, mainly post offices, involve the
spending of approximately $52,000,000«
The Treasury Department, in charge of the erection of Federal
buildings, has in hand in all approximately 900 building projects.
The
amount which will have been spent when all are completed is in excess ox
$167,000,000.
More than $110,000,000 of this amount has just recently
been allotted and appropriated in order to help relieve unemployment
throughout every section of the country.
The Treasury is bending every effort to expedite the work of
getting this new group of projects under contract and under construction*
It is estimated by the Division of .Procurement of the Treasury that more
than one half of the total number of projects in the whole program will
be completed or under construction by winter, unless unforeseen circum
stances arise«
The building program is now being carried out in four separate
divisions, paid for from four separate funds.
jiie first division of the Treasury building program comprises the
302 approved projects to be paid for out of the $65,000,000 appropriation
allotted by Congress June 19, 1934, for which sites will be selected and
plans prepared as soon as possible in order that contracts may be adver—
tised and completed at an early date.
- 2 -
In the second group or division of the program are those projects
for which funds have "been allocated from other sources.
There are 466
such projects, authorized at a total limit of cost of $67,410,788.
Forty-
nine of these are already under contract, involving an expenditure of
$24,442,742 or 37$ of the total.
Eighty-two projects in the second division are in the market for
bids, or in the specification stage.
The amount involved is $8,006,295,
or 12$ of the total allotment.
Two hundred and seven projects are in the drawing stage, amounting
to $17,041,516, or one-fourth of the total.
,
One hundred and twenty-eight projects are in the site stage, involving
$17,920,235, or 26$ of the total.
Branch post offices in the principal cities
will be approximately $14,000,000 under this item.
Out of the $67,410,788 fund for the second division of the program,
$4,851,627 or 7.1$ has been disposed of through expenditures; 29.3$ or
$19,591,115 is now under contract for immediate construction.
In the third division of the program are those projects to be paid
for out of funds transferred to the Treasury from other Departments.
are 33 projects in this division and the limit of cost is $1,711,865.
have been placed under contract projects totaling $1,249,230.
There
There
The value
of the work on the market, or in the specification stage, is $275,851.
Tne
remainder, totaling $186,784 is in the drawing stage.
These funds transferred from other Departments involve rehabilitation,
extension and remodeling of old buildings, construction of new buildings,
repairs to sea walls, and similar undertakings.
- 3 -
Some of the larger projects in this Division of the program are
Ellis Island, IT. Y., Immigrant Station; Galveston, Texas, Quarantine Station;
Reedy Island, Delaware, Quarantine Station; Honolulu, Hawaii, Quarantine
Station; Hew York, N. Y,, Quarantine Station and Washington, D, C., National
Institute of Health,
The fourth division of the program is the hold-over "building, the
remnants of the program commenced under the Enabling Act of May, 1926.
Eight hundred and fifteen projects were included in that program.
One
hundred and thirty-five remain under construction at the present time.
The
total of the obligations involved in this construction is $33,468,000.
These projects will be rushed to completion just as speedily as conditions
permit.
Because of the state of the real estate market during the last year,
the Treasury Department has been able to make many admntageous purchases
of sites.
On the other hand, many original estimates of construction costs
had to be revised because of increases.
The Division of Procurement esti
mates that building costs have risen approximately 20$ since July 1, 1933.
The market appears to be somewhat more stable at the present time, making
substantial progress possible during the coming months.
The present program had its inception March 4, 1913, when Congress
made a specific authorization for the purpose.
Since that date it has
appropriated to the Treasury $598,799,572, and of this amount $409,397,529
has been spent up to June 22.
All projects under the program are contract projects.
does not recognize sub-contractors.
The Treasury
Payment on contracts is made the first
of each month after operations begin, less ten per cent, which is payable
upon completion.
After the project is fifty per cent completed, full pay
ments may be secured monthly.
- 4 -
With rising construction costs, in order that there he no inferior
construction, unusual care has been necessary.
Post office building mainte
nance costs have been kept surprisingly low during the past few years,
despite the great amount of public usage received.
Less than one per cent
of the cost of the buildings has been spent yearly for upkeep.
quality of materials and construction
The high
is believed by Treasury officials
to account for this low maintenance figure.
Care is taken in the selection of sites in order to insure the
greatest possible efficiency.
For instance, in selecting a site for a post
office, a representative of the Procurement Division will visit the city
and make a survey of available sites cooperating with postal authorities.
He will then study traffic, advantages of the various locations which may
be had, nearness to a railway, population centers, and other important
factors.
In the case of the projects under the $65,000,000 appropriation, more
than 600 more projects were considered than could be taken care of with the
amount allotted.
Some of these may still be selected, as the 302 projects
already chosen may not exhaust the entire sum.
TREASURY DEPARTMENT
FOR RELEASE, MORNING- PAPERS,
Friday, July 6, 1934.
STATEMENT BY ACTING SECRETARY OP TEE TREASURY COOLIDGE
The Secretary of the Treasury gives notice that tenders are in
vited for Treasury hills to the amount of $75,000,000, or thereabouts.
They
will he 182-day hills; and will he sold on a discount basis to the highest
bidders.
Tenders will he received at the Federal Reserve Banks, or the
branches thereof, up to two o* clock p. m. , Eastern Standard time, on Monday,
July 9, 1934.
Tenders will not he received at the Treasury Department,
Washington,
The Treasury hills will he dated July 11, 1934, and will mature on
January 9, 1935, and on the maturity date the face amount will he payable
without interest.
They will he issued in hearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000,
and
$1,000,000
(maturity value).
It is urged that tenders he made on the printed forms and forwarded
in the special envelopes which will he supplied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
tender must he in multiples of $1,000.
Each
The price offered must he expressed
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in in
vestment securities.
Tenders from others must he accompanied by a deposit
of 10 per cent of the face amount of Treasury hills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on July
9, 1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning*
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount ap
plied for, and his action in any such respect shall be final.
tenders will be advised of the acceptance or rejection thereof*
Those submitting
Payment at
the price offered for Treasury bills allotted must be made at the Federal
Reserve Banks in cash or other immediately available funds on July 11, 1934*
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes,
No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction, or
otherwise recognized, for the purposes of any tax now or hereafter imposed by
the United States or any of its possessions.
Treasury Department Circular No, 418, as amended, 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 thereof,
TREASURY DEPARTMENT
Washington
EOR THE PRESS;
July 9, 1934.
pt^ tUFTS
OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending July 6, 1934:
Philadelphia...... .
San Francisco.•••••• .... .
Denver. ......................
450,130.53 fine ounces
766,856,49
11
11
211,260.00 «
H
1,428,247,02
«
«
Corrected figure on total receipts of silver through July 6j 9,985,000 fine ounces
RECEIPTS OF GOLD BY THE MIUTS AND ASSAY OFFICES:
H
“
New
Week ending July 7, 1934:
Imports___________ Secondary______ Domestic
Philadelphia.....
San Francisco....
Denver,
New York.........
Seattle..........
New Orleans......
Total,........
1,484.36
312,167.30
122,162.38
110,552.00
1,113,200.00
19,510.20
28,016.92
$10,637,669.67
$1,705,608.80
vj>
$
•••
926,594.31
46,291.00
9,663,300.00
$
314.44
1,051,005.37
851,014,00
#•«
168,429.57
______ 161.24
$2,070,924.62
GOLD RECEIVED BY FEDERAL RESERVE RANKS AND THE TREASURER!S OFFICE!
(Under Secretary1s Order of December 28, 1933)
Gold Coin______ Gold Certificates
Received by Federal Resprve Banks:
Week ended July 3..........
Received previously*•••••••
Total to July 3,........
$
45,863.18
28,162,546.31
$28,208,209.49
$
579,106.00
61,314,780*00
$61,893,886.00
Received by Treasurer^ Office:
$
Week ended July 3..........
Received previously........
Total to July 3.•••••.••
Note:
$
249,194.00
18,100.00
1,601,900.00
249,194.00
$ 1,620,000.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported*
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
No purchases for the week ended July 7, 1934,
EOR IMMEDIATE RELEASE,
Friday, July 13, 1934
TREASURY DEPARTMENT
STATEMENT BY ACTING SECRETARY OE THE TREASURY COOLIDGE
The Secretary of the Treasury gives notice that tenders are invited
for Treasury "bills to the amount of $75,000,000, or thereabouts.
They will
be 183-day bills; and will be sold on a discount basis to the highest bid
ders*
Tenders will be received at the Federal Reserve Banks, or the
branches thereof, up to two o ’clock p. m., Eastern Standard time, on Monday,
July 16, 1934,
Tenders will not be received at the Treasury Department,
Washington,
The Treasury bills will be dated July 18, 1934, and will mature on
January 16, 1935, and on the maturity date the face amount will be payable
without interest.
They
will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or
trust company.
-
2
-
Immediately after the closing hour for receipt of tenders on July 16,
1934, all tenders received at the Federal Reserve Banks or "branches thereof
up to the closing hour will he opened and public announcement of the accept
able prices will follow as soon as possible thereafter, probably on the
following morning»
The Secretary of the Treasury expressly reserves the
right to reject any or all tenders or parts of tenders, and to allot less
than the amount applied for, and his action in a,ny such respect shall be
final.
Those submitting tenders will be advised of the acceptance or re
jection thereof.
Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately avail
able funds on July 18, 1934.
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
Ho loss from the
sale or other disposition of the Treasury bills shall be allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or here
after imposed by the United States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve Bank
or branch thereof.
TREASURY DEPARTMENT
Washington
I
ftOy 16, 1934.
MEMORANDUM FOR THE PRESS:
ptCTPTS
OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending July 13, 1934:
118,560.00 fine ounces
♦Denver.............. .
San Francisco....••••••••••.•••• 111,931,19
u
H
Total to July 13..... ......
230,491.19
»
n
* Corrected figure for Denver for week ending July 6: 1,260,00 fine ounces
Corrected figure on receipts for week ending July 6: 1,218,247,02 fine ounces
Corrected figure on total receipts of silver through July 13, 1934: 10,005,000
fine ounces
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Hew
Imports___________ Secondary_______ Domestic
?eek ending July 13, 1934:
Philadelphia.,,,,,.
San F r a n c i s c o . •
D e n v e r . ,
New York,..... .
Seattle.......... .
New Orleans,......,
$
...
1,303,990.71
42,769.00
9,270,000,00
...
18,996.40
$10,635,756.11
$
333,532,17
205,104,14
90,399,00
951,000,00
30,320.35
27,614,86
$
968,73
1,081,718,64
943,392,00
236,182.07
_________ • • •
$1,637,970.52
$2,262,261.44
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER» S OFFICE:
(Under Secretary*s Order of December 28, 1933)
Gold Certificates
Gold Coin
Received by Federal Reserve Banks:
64,3.91.87
28,208,209.49
$28,272,401.36
$
Week ended July 11...••••••
$
800,00
Received p r e v i o u s l y . 249,194,00
Total to July 1
1
,
$
249,994,00
$
Week ended July 11 •••••••■•
Received previously........
Total to July 11.......
$
708,374.00
61,893,886,00
$62,602,260.00
Received by Treasurer* s Office:
; Note:
\
12,400.00
1,620,000.00
$ 1,632,400.00
Gold bars deposited with the New York Assay Office to the amount of
$200,572,69 previously reported,
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Week ended July 16, 1934.............
$3,828,000.00
EOR RELEA.SE, MORNING PAPERS,
Friday, July 20» 1934.
TREASURY DEPARTMENT
STATEMENT BY ACTING SECRETARY OP THE TREASURY COOLIDGE
The Secretary of the Treasury gives notice that tenders are invited for
Treasury bills to the amount of $75,000,000, or thereabouts.
They will be
182 -day bills; and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve Banks, or the branches thereof,
up to two o'clock p. m., Eastern Standard time, on Monday, July 23, 1934.
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated July 25, 1934, and will mature on
January 23, 1935, and on the maturity date the face amount will be payable
without interest.
They will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity
value) •
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
"branches upon application therefor.
Ho tender for an amount less than $1,000 will be considered.
mist be in multiples of $1,000.
Each tender
The price offered must be expressed,on the
basis of 100, with not more than three decimal places, e. g., 99.125.
Frac«-,
tions must not "be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per
cent of tho face amount of Treasury "bills applied for, unless the tenders arc
accompanied "by an express guaranty of payment By an incorporated "bank or
trust conpany.
Immediately after the closing hour for receipt of tenders on July 23,
1934, all tenders received at the Federal Reserve Banks or "branches thereof
up to the closing hour will "be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final.
Those sub
mitting tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at the
Federal Reserve Banks in cash or other immediately available funds on July
25, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes,
No loss from the sale Ox other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or branch
thereof.
(ft
TREASURY DEPARTMENT
Washington
July 23, 1934,
MEMORANDUM EOR THE PRESS:
RECEIPTS OE SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ending July 20, 1934.
D e n y e r ........... ........................
4,118.00 fine ounces
San Francisco ............... ............ j 111,099;24 H
Total to July 20
115,217.24
11
RECEIPTS OE GOLD BY THE MINTS AND ASSAY OFFICES:
Week ending July 20, 1934:
Philadelphia ••••••• $
4,059.09
San Francisco ••••••
10,869.98
Denver •••••••••••••
41,373,00
New York; ...........
8,872,300.00
Seattle ........ .
.....
New Orleans
; ____ 21,227.44
303,316.85
100,380.75
68,237.00
2,065,000.00
36,708.36
43,017.51
$ 8,949,829.51
$ 2,616,660.47
Total
New
Domestic
57.54
659,051,35
592,519.00
217,414.34
799.79
$ 1,469,842.02
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended July 18 ..•••••••.
Received previously •••*••••*
______Gold Coin_________ Gold Certificates^
$
Total to July 18 ........
41,513.89
28,272,401.36
$
754,220.00
62,602,260.00
$28,313,915.25
$63,356,480.00
$
$
Received by Treasurer^ Office:
Week ended July 18 ..........
Received previously •••••••••
Total to July 18 ...«••«.
$
•••....
249,994.00
249,994.00
■
1,632,400.00
$ 1,648,500,00
Note: Gold bars deposited with the New York Assay Office to the amount of
$200,572.69 previously reported,
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Week ended July 23 ...................... •.......
$
400,000.00
POR RELEASE, MORNING PAPERS,
Friday, July 27, 1934.
tbeasury d e p a r t m e n t
STATEMENT BY ACTING SECRETARY OP THE TREASURY COOLIDGE
The Secretary of the Treasury gives notice that tenders are in
vited for Treasury hills to the ambunt of $75,000*000* bi* thereabouts¿
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up to two o ’clock p. m., Eastern Standard time,
on Monday, July 30, 1934.
Tenders will not he received at the Treasury
Department, Washington.
The Treasury hills will he dated August 1, 1934, and will mature
on January 30, 1935, and on the maturity date the face amount will he pay
able without interest.
They will he issued in hearer form only, and in
amounts or denominations of $1,000, $10,000, $100,000, $500,000 and
$1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied by the Federal Re
serve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
tender must he in multiples of $1,000.
Each
The price offered must he expressed
on the basis of 100, with not more than three decimal places, e, g., 99.125.
Tractions must not he used.
Tenders will he accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities.
Tenders from others must he accompanied by a de
posit of 10 per cent of the face amount of Treasury hills applied for, un
less the tenders are accompanied by an express guaranty of payment by an
incorporated hank or trust company.
I
~ 2 -
Immediately after the closing hour for receipt of tenders on
July 30, 1934, all tenders received at the Federal Reserve Banks or
tranches thereof up to the closing hour will "be opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
Those submitting tenders
will be advised of the acceptance or rejection thereof*
Payment at the
price offered for Treasury bills allotted must be made at the Federal
Reserve Banks in cash or other immediately available funds on August 1,
1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
Ho loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from any
Federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
July 30, 1934#
iOHANIUM FOR THE PRESS
RECEIPTS OE SILVER BY THE MINTS:
'
(Under Executive Order of December 21, 1933)
Week ended July 27, 1934:
. . .
San Francisco
—
Denver *
........ 1.................
Philadelphia
Total for the week
receipts of g o l d b y t h e m i n t s
126,926.93 fine ounces
5,854e00
159,923a55
“
n
292,719.48
i
n
AND ASSAY OFFICES:
Week ended July 27, 1934:
Imports
Philadelphia# #.,.• $
13,091.30
New York
18,882,000.00
San Francisco ••••
964,224.94
Denver ••••«••«•».
77,838.00
New Orleans ••••..
766.20
Seattle ..........
T o t a l .... . $19 ,937,920.44
New Domestic
Secondary
66.40
$ 294,348.14
2,738,000.00
129,776.67
33,643.00
43,809.89
20,763.26
$
$3,260,340.96
$2,193,581.34
1,445,633.40
483,177.00
98.23
264,606.31
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURERS OFFICE:
(Under Secretary1s Order of December 28, 1933)
Received by Federal Reserve Banks:
______Gold Coin
Week ended July 25
$
220,936.98
Received previously •;••••••••
28,313,915.25
Total to July 25 ..»•«•«••• $ 28,534,852.23
Gold Certificates
$
954,830.00
63,356,480.00
$ 64,311,310.00
Received by Treasurers Office:
Hote:
Week ended July 25 ••••••••••• $
Received previously ••••••••*•
249,994.00
Total to July 25 •••••••••• $
249,994.00
$
7,400.00
1,648,500.00
$
1,655,900.00
Gold bars deposited with the New York Assay Office to the amount of
$200,572.69 previously reported.
JOB RELEASE, MORNING- PAPERS,
Friday, August 3, 1934
treasury d e p a r t m e n t
STATEMENT BY SECRETARY MORG-ENTHAU
The Secretary of the Treasury gives notice that tenders are in
vited for Treasury hills to the amount of $75,000,000, or thereabouts.
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up to two o fclock p, m., Eastern Standard time,
on Monday* August 6, 1934.
Tenders will not he received at the Treasury
Department, Washington.
The Treasury hills will he dated August 8, 1934, and will mature
on February 6, 1935, and on the maturity date the face amount will he
payable without interest*
They will he issued in hearer fbrm
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender must he in multiples of $1,000.
The price offered must he
expressed on the basis of 100, with not more than three decimal places,
e, g,, 99,125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorpor
ated hanks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must he accom
panied by a deposit of 10 per cent of the face amount of Treasury hills
applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated hank or trust company.
Immediately after the closing hour for receipt of tenders on
August 6, 1934, all tenders received at the Federal Reserve Banks or
tranches thereof up to the closing hour will he opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at
the Federal Reserve Banks in cash or other immediately available funds
on August 8, 1934,
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, 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 thereof.
for release, mo ruing papers,
Friday, August 10, 1934.
treasury d e p a r t m e n t
STATEMENT BY SECRETARY MORGENTHAU
TRe Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $75,000,000, or thereabouts.
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up to two o fclock p. m,, Eastern Standard time,
on Monday* August 13, 1934.
Tenders will not he received at the
Treasury
Department, Viashingt on.
The Treasury hills will he dated August 15, 1934, and will
mature on February 13, 1935, and on the maturity date the face amount
will he payable without interest.
They will he issued in hearer form
only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender must he in multiples of $1,000.
The price offered must he
expressed on the basis of 100, with not more than three decimal places,
e. g,, 99.125.
Fractions must not ho used.
Tenders will he accepted without cash deposit from incorpor
ated harks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must he accom
panied by a deposit of 10 per cent of the face amount of Treasury hills
applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated hank or trust company.
Immediately after the closing hour for receipt of tenders on
August 13, 1934, all tenders received at the Federal Reserve Banks
or tranches thereof up to the closing hour will he opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at
the Federal Reserve Banks in cash or other immediately available funds
on August 15, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No, 418, as amended, and this
notice prescribe the terms of the Treasury bill3 and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
August 14, 1934,
INSTRUCTIONS FOR DELIVERING SILVER TO THE ASSAY OFFICE IN FEW YORK
UNDER THE »NATIONALIZATION" ORDER.
1.
If the silver is in your possession, send it to the New York
Assay Office at Old Slip and South Street, which is near the
foot of Wall Street on the East River.
2.
If the silver is in a hank or an approved warehouse and you
have the warehouse receipt, endorse the receipt to "Superin
tendent, U. S, Assay Office", have this endorsement guaranteed
hy your hank or a Commodity Exchange Clearing broker, and deli
ver or send the warehouse receipt to the Assay Office.
3.
If the warehouse receipt is in the hands of your broker or hank,
arrange for the broker or hank to deliver the receipt to the
Assay Office endorsed as above.
4.
If you deliver the silver itself, an advance payment up to
ninety-five per cent will ordinarily he made at once, and the
balance will he paid after the exact value has been determined.
If the warehouse receipt is turned over to the Assay Office, the
advance payment up to ninety-five per cent will ordinarily he
made within twenty-four hours.
5.
The Government will pay all proper delivery charges, and will
pay storage from the time the Assay Office accepts delivery of
warehouse receipts.
NELLIE TAYLOE ROSS
Director of the Mint
TREASURY DEPARTMENT
Washington
memorandum f o r t h e p r e s s :
August 1 4 , 1934
Instructions similar to those issued today for delivery of silver
to the Assay Office in New York, have "been issued by the Director of
the Mint, Nellie Tayloe Ross, covering the delivery of silver under
the '‘nationalization” order to the mints at San Francisco, Philadelphia
Denver, New Orleans, and the Assay Office at Seattle.
The only difference in the instructions is that at places other
than New York the endorsement on warehouse receipts must be made by
a bank, and not by a Commodity Exchange Clearing broker*
TREASURY DEPARTMENT
Washington
I for r e l e a s e ,m o r n i n g p a p e r s ,
Friday, August 17, 1934,
I
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts.
They will be
182-day bills5 and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve Banks, or the branches thereof,
up to two o ’clock p, m , ,' Eastern Standard time, on Monday, August 20, 1934,
Tenders will not be received at the Treasury Department, Washington,
The Treasury bills will be dated August 22, 1934, and will mature on
February 20, 1935, and on the maturity date the face amount will be payable
without interest.
They will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity
value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000,
Each tender
The price offered must be expressed on the
basis of 100, with not more than throe decimal places, o. g., 99,125.
Fractions
must not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per cent
of the face amount of Treasury bills applied for, unless the tenders are
-
2
-
accompanied "by an express guaranty of payment "by an incorporated bank or
trust company.Immediately after the closing hour for receipt of tenders on August 20*
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will be opened and public announcement of the accept
able prices will follow as soon as possible thereafter, probably on the follow
ing morning.
The Secretary of the Treasury expressly reserves tho right to
reject any or all tenders or parts of tenders, and to allot less than the
amount applied for, and his action in any such respect shall be final.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
Payment at the price offered for Treasury bills allotted must be made at the
federal Reserve Banks in cash or other immediately available' funds on August
22,
1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance-taxes.
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or other
wise recognized, for the purposes of any tax now or hereafter imposed by the
United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre*scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or branch
thereof.
't j j l
'u/
TREASURY DEPARTMENT
Washington
memorandum e o r t h e p r e s s .
August 17, 1934,
The Secretary of the Treasury today issued regulations in connection
with the Mnationalization" of silver c.overing —
Receipt of silver hy the United States Mints and Assay
Offices under the Proclamation of August 9, 1934;
Delivery of silver to the United States Mints and Assay
Offices as required hy the Executive Order of the seme date;
Investigation and regulation of the acquisition, importa
tion, and exportation of silver;
Prohibition of exportation of silver; and
Piling of reports in connection with the foregoing.
The regulations may be summarized as follows:
1, Persons delivering silver to a United States Mint or
Assay Office on or before September 1, 1934 are not required to
file reports relative to such silver,
2, As to other silver situated in the continental United
States on or after August 9 and not falling within the excepted
categories (coins, fabricated articles, and a limited amount of
scrap» sweepings, etc,), the person owning, possessing, or con
trolling it on or after August 9, 1934, is required to file by^
September 15 with the Secretary of the Treasury a report containing
true and complete information relative thereto. Similar reports
are required respecting the acquisition or disposition after
August 9 of such silver and must be filed within forty—five days
after the acquisition or disposition.
Receipt of silver by the Mints.
3, The mints and assay offices will receive all silver
situated in the continental United States on August 9, 1934,
whether or not required to be delivered; except that
(a) Silver required to be delivered must be in
lots of not less than 24,500 troy ounces, or the to$al
amount which the depositor is under obligation to
deliver if that is less than 24, 500 troy ounces*
(b) Silver which may be — but is not required
to be —
delivered will be received only if of a
fineness greater than ,8 and in lots of not less than
50 troy ounces.
4.
Payment for the silver delivered will'he at the rate
of 50,010505^ cents per fine ounce, in standard silver dollars,
silver certificates, other coin or currency, (or may "be hy
United States check if the depositor does not request coin or
currency)*
Silver required to he delivered,
5, All silver situated in the continental United States
on August 9, 1934, must he delivered, unless falling within
an exempted class,
6, Exemptions include coin, fabricated silver, and a
limited amount of scrap silver, (See Sections 41 through 48
for complete list of exemptions.)
7, Silver "newly mined" after August 9, 1934, from natural
deposits in the United States, or any place subject to its
jurisdiction, is not required to he delivered under the Execu
tive Order or the regulations.
Silver "newly mined" after December 21, 1933 from natural
deposits in tk© continental United States may he deposited with
a coinage mint under the Proclamation of that date; hut if mined
between December 21, 1933 and August 9, 1934, and not deposited
under the December 21 Proclamation within fifteen days after re
fining or November 7, 193'4,whichever is later, such silver must
be delivered under the Executive Order of August 9 and the regu
lations.
Time and place of delivery.
8, Delivery should be made to the United Stabes Mint or
Assay Office to which the silver can be shipped most economically ■
i.e., Philadelphia, New York, Denver, or San Erancisco, which
ever is nearest,
9, Silver must be delivered to the proper mint on or before
November 7, 1934, or if temporarily exempt, within fifteen days
after it ceases to be exempt.
Duty to see that delivery is made to a Mint.
10.
Transfer or delivery of ownership, possession or control
to another (except in fulfillment on or before November 7, of an
obligation incurred or assumed on or before August 9, 1934, or to
a person licensed to acquire and withhold silver) will not relieve
any person of the duty of seeing that silver is delivered in com
pliance with the provisions of the Executive Order or of the
regulations.
- 3 -
Roimbur sements for costs,
11, The Treasury will pay necessary costs actually incurred
in delivering silver to the proper mint or assay office after
receipt of expense account on Treasury voucher form, Forms may
he obtained at the mints and assay offices.
Licenses to withhold silver,
12, The Secretary of the Treasury may issue licenses author
izing the acquisition or withholding of "nationalized" silver for
industrial use, for reexport, or to fulfill pre-existing contracts;
and, with the approval of the President, for purposes deemed to he
in the public interest and not inconsistent with the purposes of
the Silver Purchase Act of 1934 and of the Executive Order; hut,
as licenses are not necessary to acquire or withhold silver which
is not "nationalized” licenses will not he issued where such
silver can he substituted. Applications for such licenses are
to he made not later than September 15, 1934,
Exportation of silver.
The Regulations of July 5, relating to licenses to exportsilver, are revoked (Section 3) hut appear in modified form in
Article IX,
TREASURY DEPARTMENT
Washington
August 20, 1934«
MEMORANDUM FOR THE PRESS:
RECEIPTS OF SILVER BY THE MINTS:
■* (Under Executive Order of Decembe
21, 1933)
leek ended August 17, 1934:
154,249*79 fine ounces
490,276*26
«
"
5,231*00
11
I
Philadelphia.•«•••••••••••••••••
San Francisco.*««.«««*»**...*»••
Denver«••••••«••••••••••••••••••
649,757.05
Total for week ended Aug.l?•••
Total receipts of silver through August 17, 1934:
H
"
11,321,000 fine ounces.
S i m t r a n s f e r r e d TO UNITED STATES:
(Under Executive Order of August 9 , 1934)
987,039.00 fine ounces
6,727.00
»
u
,471,325.00
"
n
San Francisco••••••.»««•*••••*••
Denver«
New York»«.».*...*««••••••••••••
Total through August 17...♦«••3£ ,465,091.00
M
"
RECEIPTS OF GOLD BY THE MIITTS AND ASSAY OFFICES:
leek ended August 17, 1934; ______Imports________ Secondary_______ Hew Domestic
Philadelphia.... .
San Francisco«••••••«
Denver.••••••••••••••
New York.••«•••«•••••
Seattle. «««**.**.* •*« •
New Orleans...«..***;
Total for the week.
$
$
$3,747,243.46
$1,652,739.31
5,931.35
78,166.48
28,634.00
3,631,000.00
.* .••
3,511*63
416,193.04
158,014.51
56,712.00
960,900,00
25,829.60
35,090*16
$
244.04
739,045.12
734,807.00
. *•.•
101,022.97
2,286.55
$1,577,405.68
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary*s Order of December" 28, 1933)
Received by Federal Reserve Banks: ______G-old Coin_____
leek ended August 15....*...
Received previously.■••••••«
$
50,733.74
28,789,447«75
Total to August 15.•••••••
$28,840,181.49
Gold Certificat.ejs
$
681,340.00
65.734,590.00
$66,415,930.00
Received by Treasurers Office:
$
Week ended August 15.......*
Received previously.•••••.«•
Total to August 15.«••••••
Note:
$
250,994.00
17,000.00
1,671,000.00
250,994.00
$ 1 ,688,000.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
.... .$1,250,000.00
lotal for week.••••••.... ..,.*•••••••'
TEEA.SUHY DEPARTMENT
FOR RELEASE, MORNING PAPERS,
Friday, August 24, 1934.
I
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
| Treasury hills to the amount of $75,000,000, or thereabouts.
They will be
183-day bills; and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve Banks, or the branches thereof,
1 up to two o'clock p. m . , Eastern Standard time, on Monday, August 27, 1934.
I Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated August 29, 1934, and will mature on
February 27, 1935, and on the maturity date the face amount will be payable
| without interest.
j
They will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity
value)•
It is urged that tenders be made on the printed forms and forwarded in the
If special envelopes which will be supplied by the Federal Reserve Banks or
j
? branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e, g., 99.125«
Frac
tions must not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment#
j securities*
Tenders from others must be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company,
—
2
—
Immediately after the closing hour for receipt of tenders on August 27*
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will be opened and public announcement of the accept
able prices will follow as soon as possibLe thereafter, probably on the fol
lowing morning.
The Secretary of the Treasury expressly reserves the right
to reject any or all tenders or parts of tenders, and to allot less than the
amount applied for, and his action in any such respect shall bo final.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
Payment at the price offered for Treasury bills allotted must be made at the
Federal Reserve Banks in cash or other immediately available funds on August
29, 1934.
The Treasury bills will be exempt* as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation* except estate and inheritance taxes.
No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction* or
otherwise recognized, for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.
Treasury Department Circular No* 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may be obtained from any Federal Reserve
Bank: or branch thereof,
*1.
TBEASUEY DEPAKEKENT
Washington
August 27, 1934.
FOB THE PRESS:
ffgwiiTPTS OF SILVER BY THE MINTS:
^ (Under Executive Order of December 21, 1933)
leek ended .August 24, 1934;
San Francisco............ ......
Denver
.......................
Total for week ended Aug. 24...
374,526.65 fine ounces
1,977,00
*»
"
376,503.65
,f
M
Total R e c e ip ts of silver through August 24, 1934:
11,698,000 fine ounces
STIVER TRANSFERRED TO UNITED STATES;
r (Under Executive Order of August 9, 1934)
^3ek ended August 24, 1934;
P h i l a d e l p h i a .......... .
3,952 ounces
S a n Francisco ....... .....
3,817,650
H
Denver
5,602
11
New York ........... .
22,260, 815
n
Total for week ended Aug. 24 .... 26,088,019 ounces
59,553,110 ounces
Total receipts of silver through August 24, 1934:
llECEIPTS 0 ? GOLD BY THE M INTS AND ASSAY O F F IC E S :
Philadelphia ........
San Francisco .......
Denver .............
New Y o r k .... .
Seattle .............
New Orleans.... .
Tot
for the week.
Secondary
Impo rt s
leek ended August 24, 1934:
3,742.55
953,873.25
11,642.00
2,329,450.00
18,128.34
$ 3,316,836.14
$
289,860.07
153,851.69
38,410.00
843,200.00
19,238A98
56,741,69
$ 1,401,302.43
New Domestic
$
59,85
596,070.49
586,378.00
531,082.70
$1,713,591.04
RECEIVED BY FEDERAL RESERVE BANKS AND THE TKEL^SUEER1S OFFICl
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended August 22, 1934 ...
Received previously ........
Total to August 22, 1934,...
Gold Coin
Gold Certificates
>
38,157.33
28,840,181.49
$ 896,220.00
66,415,930.00
$28,878,338,82
$67,312,150.00
Received by Treasurer’s Office:
7,600.00
$
*.. •
leek ended August 22, 1934 ...
1 , 688 , 000.00
Received previously........ .
I __ 250,994.00
Total to August 22, 1934 ...
$
250,994-,00
$ 1,695,600.00
[ROTE: Gold bars deposited with the New York Assay Office to the
I
amount of $200,572.69 previously reported,
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week
$10,798,000,00
TREASURY DEPARTMENT
Washington
RELEASE, TJPOÎT DELIVERY,
Tuesday, Aug»38,1934, 10:00 a.m.
Press Service
8 Æ -3 4 ~
Address prepared for delivery "by Robert H. Jackson, Assistant G-eneral
Counsel of the U, S. Treasury Department, before the Tax Lawyers Attending
the Anerican Bar Association Meeting at Milwaukee, Wisconsin, on Tuesday,
August 28, 1934.
PROBLEMS OP THE FEDERAL TAX BAR
The American Bar Association's Committee on Taxation wisely has called
those lawyers engaged in tax practice to meet and consider their common
problems.
In addition to difficulties which vex the general profession, tax
practice presents some of its own.
Heed for a clearing house for the exchange
of views, and a voice to speak for the tax bar is so apparent that I hope you
mey perfect at least a preliminary organization and perhaps a Section for the
purpose.
If you choose to so organize, we invite you to go at once to work on be
half of the tax bar.
The Treasury Department is considering complete re
vision of regulations governing enrollment and disbarment.
It would welcome
creation of a representative professional group whose criticisms and suggestions
it could weigh and consider.
We therefore invite you to name a Committee to
take up at once consideration of a new code to govern the Treasury Bar and at
once to demonstrate the usefulness of collective effort as a measure of self
interest and also one of public service.
Announcement is being made today of the appointment by Secretary
Morgenthau, of a new Comnittee on Enrollment and Disbarment.
It will consist
of Mr. Walter Wheeler Cook, Mr. Irwin Gilruth and Mr. Lawrence Becker.
Mr. Cook
has a unique position with the profession as the guide, philosopher and friend
of the many lawyers who have come under his influence as an instructor.
Mr.
Gilruth brings to the Committee the view point of the active practitioner, and
Judge Becker, a former judge in Indiana, a former Solicitor for the Treasury,
and more recently the prosecutor of disciplinary cases before the Enrollment
Board, brings an intimate knowledge of the problems of the department.
The high
character of this board should be taken by tax practitioners as notice from
Secretary Morgenthau, that disciplinary matters will have vigorous, but judicious
treatment, that accused members of the tax bar must stand on the merits of their
conduct, not on the influence of their friends.
At this somewhat experimental meeting it would be well to consider our
professional problems with a perspective that covers years, rather than this
day alone.
1
answers.
I can be more helpful by raising questions, than in attempting
To that end I offer a number of inquiries that sooner or later will
have to be answered.
The answers may be of consequence to you in your pro
fessional life.
(l)
SHALL THERE BE A FEDERAL DEPARTMENTAL BAR OR WILL EACH DEPARTMENT
CONTINUE TO MAINTAIN SEPARATE ENROLLMENT AND PRACTICE RULES?
The present policy is so chaotic, confusing and costly from the viewpoint
of the government and so vexatious and burdensome to practitioners that I cannot
give it a long expectancy of life, in spite of the well known inertia of the
Federal machine.
The Department of State, the Department of Justice, the Department, of.
Agriculture have no regulations governing enrollment and no restrictions upon
those who may practice before them.
The Treasury Department has elaborate
regulations governing enrollment, conduct and disbarment, admits lawyers,
■ accountants and agents to practice and maintains an Enrollment Committee and a
prosecuting officer to present complaints.
Enrollment with the Treasury De
partment permits practice in the Department only, and does not authorize
appearance "before the Board of Tax Appeals, so that two enrollments are re)
qpired to conduct a case before the Bureau and before the Board of Tax Appeals.
The Board of Tax Anneals has a separate enrollment system and admits both
labors and certified public accountants to its practice.
It does not maintain
any disciplinary organization.
In spite of close relationship between bureau practic® and board practice,
there is no coordination between the two enrollments, an attorney may be dis
barred before one and still practice before the other, nor are the investigan
tions made by one department available to the other.
Ihe Department of the Interior has rather comprehensive regulations governing the recognition of agents and attorneys.
It maintains no special Committee
on Enrollment and Disbarment but charges may be preferred by the Secretary and
hoard before a subordinate designated for the purpose, who returns the record
I
with findings of fact and recommendations to the Secretary for action.
The Federal Trado Commission has rules of practice and procedure hut no
regulations governing admission to practice.
Attorneys appear without formal
recognition unless their qualifications to practice are questioned.
The Department of Commerce has an elaborate code governing admission to
practice before the Patent Office.
The United States Veteranas Administration has regulations governing recogj!
nition and disbarment of attorneys and agents.
Charges of misconduct are pre
ferred by the Administrator and final action is apparently taken hy the Administrator himself.
The Interstate Commerce Commission has rules governing admission to practice
of both attorneys and agents.
It has set up no machinery for enforcomont and
the rules’themselves are rather general in character.
It is significant,
however, that there exists an ''Association of Practitioners before the Interstate
Commerce Commission" with headquarters in Washington, which claims
practitioners and which has adopted a code ox ethics that is more detaile
imposes higher standards upon its members than does the code of ethics of the
American Bar Association,
It may be that detailed rules and enforcement
machinery are not found necessary because the profession itself is organized
and vigilant,
I am not informed whether there is a relationship between the
two, hut it is safe to say that generally, the more the profession is regulated
from within, the less regulation it needs from without.
At the present time each department goes about enrollment in a different
way, some regarding it as a mere formality and others making careful local in
vestigation of applicants.
Information of one department is not availed of
ty any other, and notice of disbarment of a practitioner would only come to
another department by accident or by a new complaint.
\
The Departments them-
selves have made no joint effort to coordinate such policies or activities, .
There is no established channel for the exchange of information between them.
Each department has the same need to see that those who represent others
shall be identified, reliable, and possess a character fitting to a position of
trust and a general competency equal to the task assumed.
Except for technical
qualifications, and no department really tests those, the requirements should
not differ as between them,
It is probable that Congressional enactment, if default of administrative
action continues, will bring about a consolidation of enrollment activities of
the several departments.
The bar should concern itself with a problem so
vital, not in the usual spirit of antagonism, but in a cooperative mood.
present duplication of systems is not economical nor effective.
The
Enforcement
of discipline is either omitted entirely, or judgments are rendered by the same
j| officers who prefer the charges# *' The bar and the government have common
grounds for dissatisfaction with the present method of Departmental enrollment
aud should make its improvement a common cause.
:- 5 (2)
SHOULD ENROLLMENT BE INDETERMINATE OR FOR A FIXED PERIOD?
A permanent enrollment carries names upon its lists long after their
possessors are dead or out of practice#
Admission to the bar for life in a
local jurisdiction is a different matter than in a national jurisdiction#
En
rollment for not longer than five years would give "better information and con—
troli and would assure a current membership roll#
The usual motives to observe
approved standards of professional conduct would be strengthened by the prospect
of submitting application for renewal of the professional privilege and of having
one*s standards reviewed.
(3)
WHAT FAITH AND CREDIT SHOULD THE FEDERAL AUTHORITY GIVE TO MEMBERSHIP
IN A STATE BAR?
Unfortunately mere admission to a State bar is not always a strong assur
ance of either character or competency#
requirements for admission.
The several states differ widely in
If Federal authority were to seek uniformity,
there would he difficulty in reconciling the conflicting standards of the
several communities#
Is uniformity of education necessary or desirable, or should each locality
judge the equipment necessary to represent it?
If one attains standards satis
factory to his own neighbors, should he not be entitled to recognition as their
legal representative in Washington?
Tests of character imposed by local law are also variable#
The funda
mental principles of organization of the bar itself differ in the several
commonwealths#
We have outstanding examples of an all-inclusive statutory
organization with great powers in the bar itself over admission and discipline#
Elsewhere bar associations are voluntary groups and membership somewhat on a
club basis.
The vigor and consistency with which discipline is administered
varies in different localities.
The most constant and energetic disciplinary
effort is made by the bar associations of the larger cities, doubtless because
- 6 the need i§ most imperative there*
State Bar Associations are usually without
the implements and often without the will to he real governing professional
todies*
p
There are, those who feel that admission to practice before the courts of
their state, should he sufficient warrant for recognition hy the administrative
departments, as it is usually the warrant for admission without further examina
tion to the Federal Courts, including the Supreme Court.
It might he answered
that the lawyers* methods, equipment, duties.and responsibilities before the
administrative departments of the central government are so different as to
require a separate inquiry into his qualifications.
already made their own terms with theories.
Events, however, have
The existing condition is a flock
of Federal Bars, they threaten to multiply, they are creatures of chance, their
requirements result from the individual convictions of the department head who
happened at some time to concern himself with the matter.
Shall this develop
ment be left to evolution, or shall its intelligent direction he assumed?
a system he created or a chaos of systems he continued?
impose uniform standards?
Or no standards?
Shall
Shall such a system
Or minimum tolerable standards?
Or adopt as its own the standards it finds in each locality?
(4)
ANOTHER PROBLEM OF GOVERNMENT DEPARTMENTAL REGULATION OF PROFESSIONAL
CONDUCT IS* THE CONTINGENT FEE.
This problem is present wherever there is law practice.
The universal character of the problem is some evidence that the con
tingent fee is a necessary concession to claimants, who need representation hut
do not have or do not wish to jeopardize any other asset than the claim involved.
That the abuse of the contingent fee, is almost as extensive as its use
indicates the necessity and delicacy of its regulation.
Few who arc familiar with the necessities of humble people would advocate
the abolition or prohibition of the contingent fee.
It is equally certain
that few who have observed the effect of the contingent fee would look with
favor upon a law practice or accountancy practice based entirely on contingent
fees*
The contingent fee when resorted to by the sttorney as a means of pro
curing professional employment or of enlarging his fees, destroys that sense of
detachment and professional perspective which is the greatest assurance that a
lanvyer will present his client* s case with fairness.
no longer a professional representative.
A partner in a claim is
The contingent fee lias led to the
presentation of unjustifiable claims against the government and it has led to
grossly extortionate charges for the performance of purely formal matters,,
Its
advocates can point to just claims that would have been abandoned had not the
contingent fee made prosecution possible, and its opponents can point to perjury,
extortion and general professional degeneracy as its products.
The bar cannot permanently evade some effort to control the contingent fee.
What will the answer be?
(5)
WHAT REGULATION WILL REACH THE LAWYER WHO ATTEMPTS TO USE HIS POLITIC/'
I M O T C E OR PERSONAL RELATIONS, OR FORMER OFFICIAL POSITION WITH THE DEPARTMENT,
TO PROMOTE HIS BUSINESS?
1Jty official life is long enough to make my testimony interested,
and not
long enough to make it well informed, but your own experience I am confident will
confirm the observation that very few cases relatively are helped by political
or personal influence.
Tactics which indicate a resort to political pressure
arouse the resentment of honest officials and put even weak and unfaithful ones
on their guard.
The country at large does not understand that a former office
holder is held in the same esteem in Washington as yesterday* s newspaper.
However ineffective claims or appearances of influence may be in obtaining
decisions of the government, they are unquestionably persuasive in obtaining
business.
Taxpayers and even members of the bar sometimes employ as counsel
men who once held positions of influence but who are already discredited by
their efforts to "cash in" on their friendships or political connections.
Aside
from a tendency to discredit the service, the "influence lawyer" presents a
problem of unfair competition which the bar should aid in suppressing.
(6)
WHAT RESPONSIBILITY SHOULD REGULATIONS IMPOSE UPON THE LAWYER WHO
PRESENTS A CASE TO A GOVERNMENT DEPARTMENT?
Between practice in a local tribunal, and practice before a department of
the central government, there are differences in temptation and in opportunity
to mislead.
In near-at-home practice one* s representations are readily tested
by neighborhood knowledge, testimony is subjected to informed and interested
.
cross examination, and a contestant is alert to expose deceit or overstatement.
Before the Departments the test of local knowledge is wanting, and the. investi
gations which must serve as its substitute are often casual and feeble.
Hear
ings are usually ex parte and no interested competitor sits ready to expose
errors or omissions.
The opportunity to mislead by half truths is tempting.
Perhaps that is why men cautious in ordinary affairs, seem reckless in their
representations to the government, and it may account for the tendency of
officialdom to become suspicious and exacting.
The tendency therefore in federal departments is in the direction of i2>*
creasing the responsibility of attorneys for the statements which they make or
sponsor.
Lawyers must assume large responsibilities for the accuracy of
letters, briefs and affidavits.
No attorney can in all instances verify the
information that he must use nor make all statements upon personal knowledge,
A lawyer*s name upon a document should, however, imply his certification that
ho does not know of any inaccuracy, falsity or omission, that he hsu> been dili
gent in searching for all relevant information and that tne evidence submitted
comes from sources which ho believes reliable.
If it shall appear that the
document is reckless or false, is it too much to place upon the attorney the
burden of satisfying the Enrollment Board that he was not a party to the falsity?
- 9 It is true that this is a reversal of the usual rule of burden of proof hut
it does not seem to me an unreasonable burden to place upon the bar*
Everyone who advises a taxpayer in the preparation 'of his tax return must
now bo named in the return.
time the return is made#
ingly died.
Responsibility for tax advice will be fixed at the
It cannot later be shifted to a lawyer who has oblig-v
This ig one step in the direction of fixing the responsibility of
those engaged in tax practice for the results of their work*
(7)
WHAT COOPERATION IN DISCIPLINE WILL A COMMITTEE ON ENROLLMENT AND DIS
BARMENT RECEIVE FROM THE BAR?
No government department desires to be constantly spying upon those it
recognizes as attorneys, nor can a spy system be effective*
Those who know best the unethical lawyers, are the lawyers themselves.
They
know by general reputation, and they know specific instances of misconduct.
While I have a school boy*s prejudice against a tattle tale, I can see no
way discipline can be enforced upon the bar except by the cooperation of the bar
itself.
It must impart information as to the identity of fellow tax prac
titioners whose metho ds war rant investigation.
I t must call attention to
specific acts that violate professional obligations.
If the tax bar regards
the fumigation of its household as its own job in which it can invoke the aid
of the Treasury, the effort to place tax practice upon a higher plane will be
successful.
If, however, the bar as a whole regards the right to be crooked
as a priceless possession to be defended by hostility to all regulation and
governance, the inevitable result will be that as a whole it will face a
vexatious degree of regulation really needful only for its relatively few rascals*
In regulating the Treasury Bar, which consists not only of lawyers but also
of accountants and agents, there will be three purposes in mind.
1*
To protect the revenues of the United States against fraud and waste.
-
2«
10
-
To protect taxpayers against dishonest or tricky advisors who lead
them ipto trouble and controversy.
3.
To protect honorable lawyers who give faithful advice to their clients
against the unfair competition of slickers whose stock in trade is fraudulent
practice or false claims of influence*
Much of the professional misconduct which disturbs the Treasury should be
equally disturbing to the honorable members of the legal profession.
Lawyers
whose practice has been based upon their ability and character have seen their
clients lured away by claims or appearances of political or personal influence*
Lawyers who give conservative and upright advice have soon their clients weaned
away by soliciting lawyers who claimed to have safe schemes to outwit the
Treasury by taking long chances.
Taxation is a problem of great importance today and of increasing im*?
portance in the years to come*
The Treasury can have substantial aid in the
administration of the tax laws from an intelligent, high minded, reliable bar,
though it be zealous in the advocacy of taxpayers rights.
It can have no
greater obstruction than those who by clever devices that border upon fraud or
hy claims of the use of improper influence, bring tax administration into con
tempt and disrepute*
In the belief that a more effective organization of the tax bar would be a
contribution to good tax administration as well as to the welfare of the pro
fession, I am privileged on behalf of the present administration of the Treasury,
to commend the efforts of your Committee and invite you to early conference with
the new enrollment board as to the regulations best designed to keep both
government and taxpayer representation on a creditable professional piano.
TREASURY DEPARTMENT
Washington
J jOH RELEASE, MORNING- PAPERS,
fednesday, August 29, }934.
STATEMENT BY SECRETARY MORG-ENTHAU
The Secretary of the Treasury gives notice that tenders are in
vited for Treasury hills to the amount of $75,000,000, or thereabouts.
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up to two o ’clock p, m., Eastern Standard time,
on Friday, August 31, 1934,
Tenders will not he received at the Treasury
Department, Washingt on.
The Treasury hills will he dated September 5, 1934, and will
! mature on March 6, 1935, and on the maturity date the face amount will he
payable without interest.
They will he issued in bearer form only, and
in amounts or denominations of $1,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied by the Federal
| Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
| Each tender must he in multiples of $1,000.
The price offered must he
j expressed on the basis of 100, with not more than three decimal places,
e* g., 99.125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorporI ated banks and trust companies and from responsible and recognized dealers
m investment securities.
Tenders from others must he accompanied by a
deposit of 10 per cent of the face amount of Treasury hills applied for,
m
~ Coj —
unless the tenders are accompanied "by an express guaranty of payment by
an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on
iugust 31, 1934, all tenders received at the Federal Reserve Banks or
tranches thereof up to the closing hour will be opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury ex
pressly reserves the right to reject any or all tenders or parts of
tenders, and to allot less than the amount applied for, and his action in
any such respect shall be final.
Those submitting tenders will be advised
of the acceptance or rejection thereof.
Payment at the price offered for
Treasury bills allotted must be made at the Federal Reserve Banks in cash
or other immediately available funds on September 5, 1934.
The Treasury bills will be exempt, as to principal and interest,
and aay gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular Uo. 418, as amended, and this notice
prescribe the terras 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 thereof.
TREASURY DEPARTMENT,
Office of the Secretary,
August 31, 1934.
Amendment to Silver Regulations of August 17, 1934.
The Silver Regulations of August 17, 1934 are amended in Section
21 "by adding at the end thereof the following:
"A person regularly engaged in an industry, profession,
or art requiring silver who, on or before September 15, 1934,
delivers to the appropriate mint an instrument, accepted by
the mint, transferring to the United States title to silver
owned by such person which was situated in the continental
United States on August 9, 1934, is not required to file a
report relative to such silver, provided that the mint
receives such silver (or, in case of a mixture, silver which
may be deemed to be such silver) on or before the dates for
delivery fixed in the instrument with the approval of the
mint."
and, in Section 30 by striking out the last sentence and inserting
in lieu thereof the following:
"In cases where silver situated in the continental United
States on August 9, 1934 is, in the regular course of the
owners business of processing or fabricating silver,
mixed with other silver (i.e., silver not situated in the
continental United States on Aug, 9), the mint will receive
such an amount of the mixture as the mint is satisfied is
equal to the silver situated in the continental United
States on August 9, which entered such mixture, subject to
the condition that the balance of the mixture shall be
deemed for all purposes to be the other silver."
H. MORGEUTHAU, JR.,
Secretary of the Treasury.
APPROVED:
(Signed)
Franklin D. Roosevelt.
August 31, 1934
i?_
TREASURY DEPARTMENT
Washington
September 4, 1934,
VDUM FOR THE PRESS:
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Weelc ended August 31, 1934*
San Francisco#..................... 9,739,25 fine ounces
Denver.#,.,.,...... .......... .
1,835.00
11
"
Total for week ended Aug#31 .....11,574.25
"
u
Total receipts of silver through Aug.31,1934.......... 11,712,000.00 fine ounces
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Order of August 9, 1934)
Philadelphia................ .
21,292 fine ounces
Hew York,........ .
8,025,609
11
”
San Francisco................
4,104,650
11
P
Denver.............................
102,971
«
»
Hew Orleans,••••••••••••••••••••••••
- - Seattle.................... ........
47,209
"
»'
Total for week ended Aug,31 .....12,301,731
"
”
Total receipts of silver through Aug.31,1934........... 71,854,841 fine ounces
RECEIPTS OF GOLD BY THE MIHTS AHD ASSAY OFFICES:
Secondary
Imports
Week ended August 31, 1934:
$ 186,730.82
Philadelphia. ••••••••• $
587,000.00
Hew York.... ......
2,729,000.00
158,248.06
San Francisco.... ••••
4,810.82
33,975.00
Denver,....,............
10,199,00
46,118.40
Hew Orleans,..........
14,719.13
21,797.09
Seattle............... _____ ***"**’*
Total for week ended
August 31, 1934.... $2,758,728.95
$1,033,869.37
Hew Domestic
$
163.94
1,078,847.86
580,403.00
215.78
163,245.09
$1,822,873.67
GOLD RECEIVED BY FEDERAL RESERVE B A M S AHD THE TREASURER1S OFFICE:
(Under Secretary1s Order of December 28, 1933)
Gold Certificates
Gold Coin
Received by Federal Reserve Banks:
$
846,590.00
$
38,633.75
Week ended August 29.,,..........
67,312,150.00
28,878,538.82
Received p r e v io u s ly ........... ..
$68,158,740.00
$28,916,972.57
Total to Aug. 29, 1934....
Received by Treasurer1s Office:
Week ended August 29.............
Received p r e v io u s ly .................................
Total to Aug. 29, 1934....
$
250.994.00
250.994.00
7,300.00
1,695,600.00
$ 1,702,900.00
: Gold bars deposited with the Hew York Assay Office to the
amount of $200,572.69 previously reported.
HJRCHASES OF GOVERHMEHT SECURITIES FOR IHVESTMEHT ACCOUHTS:
Total for the week,..................
$17,746,000.00
TSmsURY
department
Washington
September 6, 1934,
M3M0RAIT33PM FOR THE PRESS:
The preliminary statement of Internal Revenue Collections for
tho fiscal year 1934, which hears the printed notice of release for
publication in the morning papers of September 10, 1934, should not
be released until Tuesday morning, September 11, 1954,
carefully this change of release date
Please note
wt
TREASURY
10R RELEASE, MORNING PAPERS,
Friday, September V, 1934#
department
ST ATM E E T BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are in
vitod for Treasury tills to the amount of $75,000,000, or thereabouts.
Ihey will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up to two o'clock p. in.. Eastern Standard time,
on Monday, September 10, 1934.
Tenders will not he received at the
Treasury Department, Washington,
The Treasury hills will he dated September 12, 1934, and will
mature on March 13, 1935, and on the maturity date the face amount will
he payable without interest.
They will he issued in hearer form only,
and in amounts or denominations of $1,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender mast he in .multiples of $1,000.
The price offered must ho
expressed on the basis of 100, with not more than throe decimal places,
e. g., 99.125.
Fractions must not be used.
Tenders will he accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognised dealers in
investment securities.
Tenders from others m a t he accompanied by a
deposit of 10 per cent of the face amount of Treasury hills applied for,
unless the tenders are accompanied by an express guaranty of payment by
an incorporated bank or trust company*
K'
-
2
-
Immediately after the closing hour for receipt of tenders on
September 10, 1934, all tenders received at the federal Reserve Banks or
branches thereof up to the closing hour will be opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and
to allot less than the amount applied for, and his action in any such
respect shall be final.
Those submitting tenders will be advised of the
acceptance or rejection thereof,
payment at the price offered for
Treasury bills allotted must be made at the Federal Reserve Banks in cash
or other immediately available funds on September 12, 1934,
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes,
No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No, 418, as amended, and this
notice prescribe the terras of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from any
federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
mM)RANHJM
Septemher 10, 1934,
FOR THE PRESS:
BECUPTS OE SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
lieek ended September 7, 1934:
P h i l a d e l p h i a , ................*•. •»• 148,958,19 fine ounces
San Erancisco........ . . . . . . • ** 113,077,08
Denver, • «
•
P P7 P Ofi
»• • , * •••
11
Total for week ended Sept, 7,,,, 264,307,27
Total receipts of silver through Sept.7, 1934
n
,f
M
11,976,000 fine ounces
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Order of August 9, 1934)
leek ended September 7, 1934:
Philadelphia, ••••••••.....
Hew York,•••••«••••«.••••••.••»•*
San Francisco,*,
45,143 fine ounces
3,452,392
**
M
640,565
n
H
5,986
«
|
Denver,.................................................. ................ ...
71
«
”
Hew Orleans,
m
11
Total for week ended Sept.7..# 4 144 157
Total receipts of silver through Sept, 7 ) 1 9 3 4 , 7 5 , 9 9 8 , 9 9 8
fine ounces
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
leek ended September 7, 1934:
Imports .
Philadelphia. .••••••.•.•••••••$ 15,344, 46
Hew Y
o
r
k
,
764,400*00
San Francisco,,• . . . . . . . . . .
293,736.07
Denver, •. ••. ................6,869,00
Hew Orleans. .«•*• .........
79.68
SBd/b*bX09 # # # • # # . • • • • • • • • • • • • • • ♦ •
®
^
Total for week,...........$1*080,429,21
Secondary
$ 257,723.04
1,268,000.00
123,059.15
54,766.00
26,862.74
26,859.98
$1,757,270.91
New Domestic
$
* , *
•
NOTE:
$
• • •
______250,994.00
$
250,994,00
$
$1,557,497.95
9,900.00
1,702,900.00
$ 1,712,800.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week
$18,652,000.00
•
141*950,03
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER* S OFFICE:
Under Secretary* s Order of December 28, 1933)
Gold Certificates
Received by Federal Reserve Banks:.
Gold Coin
$
847,480.00
Week ended Sept. 5 .........
$
74,519.08
68.158,740.00
Received previously,••.■••••••*»•
28,916,972.57
$69,006,220.0 0 ~
Total to Sept. 5...... .
$28,991,491.65
Received by Treasurer*s Office:
Week ondod Sept 5,.......••..••••
Received previously.••....•*•-• •••
Total to Sept. 5.,.«.•••••••..
«
708,515.92
707,032.00
TREASURY DEPARTMENT
Washington
MEMORAiTDUlvi EOR THE PRESS;
September 10, 1934«
The first of the joint meetings of hank: examiners from the
office of the Comptroller of the Currency, the Federal Reserve Board
and hanks, the Reconstruction Finance Corporation and the Federal De
posit Insurance Corporation was held today (August 10)*
The examiners were welcomed hy the Secretary of the Treasury,
Henry Morgenthau, Jr., who, in a brief address, explained the purpose
of the meeting to he agreement upon a common purpose and the achieve
ment of a better mutual understanding of methods of examination«
The other speakers at the meeting were the Comptroller of the
Currency, J. F. T. O ’Connor, who also presided as chairman of the
meeting, the Chairman of the Reconstruction Finance Corporation,
Jesse H. Jones, and the President of the American Bankers Associa
tion, Francis M. Law, of Houston, Texas.
At the request of the
Secretary of the Treasury, the address made hy Mr. Law is being
made public«
The examiners in attendance participated in a general discus
sion of the question as to why hanks are not lending on a larger
scale and whether hank examinations are a significant factor m
respect
this
TREASURY DEPARTMENT
Fashing on
jj^ORANDUM
FOR THE PRESS.
/ D .
September 13, 1934.
The following circular letter is being distributed to all Treasury Department
employees:
POLITICAL ACTIVITY OP TREASURY EMPLOYEES.
To Officers and Employees of the Treasury Department:
As a result of numerous inquiries received by the Treasury Department request
ing information as to whether holding a certain office or engaging in a particular
activity violates a specific section of Treasury Department Circular No. 518, re
garding political activity of Treasury otaployees, heretofore issued by me on August
2, 1934, the following explanation of said Circular No. 518 is issued for the guid
ance of Treasury Department employees not under Civil Service:
Generally, the regulations are not intended to curtail or interfere
with the exercise of a person’s civic rights and duties as a citizen.
The instructions contained in said Circular should not be construed;
1. To restrain an employee from voting as he or she desires or from
expressing his or her opinion, privately or publicly, on political subjects*
2» To prevent any such employee from voluntarily contributing to the
campaign fund of the party of his choice, if such contribution is made
freely and without coercion or improper solicitation, and is not made to
a person in the service of the United States.
3* To prevent any such employee from introducing speakers, or from
making speeches on public questions or the work of a particular office,
provided offensive partisanship is not displayed in said speeches#
4« To prevent such employee from attending a county, state or district
convention as a member or a delegate, if such employee does not act as^
Chairman of the convention, attempt to use the power of his public office
to control or manipulate the proceedings or display such obtrusive partisan
ship as to cause public scandal.
5» To prevent such employee from holding positions on boards of
education, school committees, public libraries, religious or eleemosynary
institutions incorporated, established or sustained by State or municipal
authority.
i
Employees of the Treasury Department may engage in the above-mentioned
activities, provided the attention required by such activity does not internfere with the regular and efficient discharge of the duties of their oxfic©
in the Treasury Department, and provided the time used for such activities
is charged against the employees’ annual leave or leave without pay. Under
no circumstances should any such activity be performed at the Government’s
expense.
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury.
treasury
f o r r e l e a s e , m o r n i n g -p a p e r s ,
DEPARTMENT
Friday, September 14, 1934.
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are in
vited for Treasury hills to the amount of $75,000,000, or thereabouts.
They
will be 182-day bills; and will be sold on a discount basis to the highest
bidders.
Tenders will be received at the Federal Reserve Banks, or the
branches thereof, up to two o'clock p. m., Eastern Standard time, on Monday,
September 17, 1934.
Tenders will not be received at the Treasury Department,
Washington.
The Treasury bills will be dated September 19, 1934f and will mature
on March 20, 1935, and on the maturity date the face amount will be payaole
without interest.
They will he issued in hearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
tender must be in multiples of $1,000.
Each
The price offered must be expressed,
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers m
vestment securities.
in
Tenders from others must be accompanied by a deposit
of 10 per cent of the face amount of Treasury bills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on
September 17, 1934, all tenders received at the Federal Eeserve Banks or
tranches thereof up to the closing hour will he opened and public announcement of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and to
allot less than the amount applied for, and his action in any such rcsp
shall be final.
Those submitting tenders will be advised of the acceptance
or rejection thereof.
Payment at the price offered for Treasury bills
allotted must be made at the Federal Eeserve Banks in cash or other immediately
a v ailab le funds on September 19, 1934.
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
Ho loss from the
sale or other disposition of the Treasury bills shall be allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or hereafter
imposed "by the United States or any of its possessions.
Treasury Department Circular No* 418, as amended, and this notice
prescribe the terms of the Treasury bills and govern the conditions of their
issue.
Copies of the circular may bo obtained from any Federal Eeserve Bank
or branch thereof.
TE.EA.SuTiY DEPARTMENT-
Washington
MEMORANDUM POE THE PRESS:
September 17., 1934,
RECEIPTS OP SILVER BY THE MINTS-.;
(Under Executive Order of December 211 1933)
Week: ended September 14, 1934:
San Francisco..... ............ ...
347,564,29 fine ounces
D e n v e r . .....................•
5,440.00
”
”
Total for week ended Sept. 14.,. 353,004.29
n
n
Total receipts of silver through September 14,1934: 12,329,000.00 fine ounces.
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Order of August 9, 1934)
Week ended September 14, 1934:
Philadelphia......... .
.30,975 fine ounces
New York.........................
3,200,880
V
11
San E r a n c i s c o . 745,467
11
Denver..............................
2,419
’’
11
New Orleans................................ 545
#
H
Seattle... .........
4,077
’’
*
Total for week ended Sept. 14... 3,984,363
11
"
Total receipts of silver through September 14,1934: 79,983,361 fine ounces.
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Week ended Sept. 14, 1934:
Philadelphia...........
New York............ ..
San Francisco.. ..........
Denver..................
New Orleans............
Seattle...............
Total for the week..,...*.
______Imports_________ Secondary______ New Domestic
$ 5,372.85
$315,245.36
$
122.99
«• — —
43,900,00
676,500.00
14,449.73
142,318.29
1,342,300.50
18,164.00
34,389,00
754,345.00
13,770.63
41,618.46
1,478.88
.....
...19,764.22
384,245,12
$51,757.21
$597,235.33
$3,158,992.49
GOLD RECEIVED BY FEDERAL .RESERVE BANKS AND THE TREASURER’S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Gold CertificatesGold Coin
Received Ty Federal Reserve Banks:
$
843,640.00
$
42,673.65
Week ended Sept. 12.•••••••...•••
69,006,220.00
28,991,491,65
Received previously.,
$69,849,860.00
$29,034,165,30
Total to Sept. 12,1934...........
Received by Treasurer’s Office: ■
Week ended Sept. 12,.......... .•
Received previously..............
Total to Sept. 12, 1934..........
NOTE:
$
$
900.00
250,994,00
251,894.00
$
1 2 ,200.00
1,712,800,00
$ 1,725,000.00
Gold bars deposited with the New York Assay Office to the
amount of $200,572.69 previously reported.
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS:
Total for the week,
f
$11,657,000
FOR RELEASE, MORNING PAPERS,
Friday, September 21, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $75,000,000, or thereabouts.
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders.
Tenders will he received at the Federal Reserve Ranks,
or the branches thereof, up to two o!clock p. m. , Eastern Standard time,
on Monday, September 24, 1934.
Tenders will not he received at the
Treasury Department, Washington.
The Treasury hills will he dated September 26, 1934, and will
mature on March 27, 1935, and on the maturity date the face amount will
he payable without interest.
They will he issued in hearer form only,
and in amounts or denominations of $1,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and
forwarded in the special envelopes which will he supplied by the Federal
Reserve Banks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender must he in multiples of $1,000.
The price offered must he
expressed on the basis of 100, with not more than three decimal places,
e. g., 99,125.
Fractions must not he used.
Tenders will he accepted without cash deposit from incorpor
ated hanks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must he accom
panied by a deposit of 10 per cent of the face amount of Treasury hills
~ 2 ~
applied for, “unless the tenders are accompanied by an express guaranty
of payment by an incorporated "bank or trust company.
Immediately after the closing hour for receipt of tenders on
September 24, 1934, all tenders received at the Federal Reserve Banks
or branches thereof up to the closing hour will be opened and public
announcement of the acceptable prices will follow as soon as possible
thereafter, probably on the following morning.
The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final.
Those submitting
tenders will be advised of the acceptance or rejection thereof.
Pay-?,
ment at the price offered for Treasury bills allotted mast be made at
the Federal Reserve Banks in cash or .other immediately available funds
on September 26, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be
exempt, from all taxation, except estate and inheritance taxes.
Ho loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax now
or hereafter imposed by the United States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con
ditions of their issue.
Copies of the circular may be obtained from
any Federal Reserve Bank or branch thereof.
■4&clA ì
TRFASTJRY DEPARTMENT
Washington
September 24, 1934,
TM10RANDUM FOR THE PRESS:
RECEIPTS OP SILVER BY THE MINTS;
(Under Executive Order of December 21, 1933)
leek: ended September 21, 1934:
95,966.10 fine ounces
San Francisco*•
......
7,075.00
”
®
Denver*•••••••»••..••••«.... .
Total for week ended Sept. 21**.*
103,041.10
Total receipts through Sept. 21, 1934.. 12,432,000.00
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Order of August 9, 1934)
Week ended September 21, 1934:
302,489 fine ounces
ti
ti
7,616,225
ti
it
234,668
i
t
H
276,621
ti
II
796
ti
1
1
5,121
it
It
8,435,920
it
It
88,419,281
New York.........
San Francisco.•••.
Denver *.«*.*•..•• «••• •
New Orleans.••.•••••••«••*.........
Seat tie. ....................
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Week ended September 21, 1934:
Philadelphia.••••••••••••••
New York
San Francisco*........... •
Denver. «••••..•.... .
New Orleans.••••••*•••••••4
Seattle............ .*••••••
Total forthe*wedc" ended'sept.
Importi
$ 17,255.91
706,000.00
236,051.81
12,286.00
21,069.73
Secondary
$298,864.67
149,340.48
21,129.00
63,731.99
33,113.59
New Domestic.
258.06
$
470.800.00
1,068,672.71
665.076.00
1,826.78
344,674.30
21 $992,683745
$566,179.73
$2,551,307.85
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURERtS OFFICE:
(Under Secretary* s Order of December 28, 1933)
_ i
Received by Federal Reserve Ranks;
Week ended Sept. 19............ .
Received previously........ .
Total to Sept. 19, 1934..... .
Received by Treasurers Office:
Week ended Sept• 19.•••...••••.*.
Received previously*•••••••••••••
Total to Sept. 19, 1934.........
j
vi
$
. 39,054,lbb*^
$29,063,568.94
$
___
$
-------251,894.00
251,894.00
NOTE:
Gold bars deposited with the New York Assay Office to
H
amount of $200,572.69 previously reported.
tne
PURCHASES OF GOVERNMENT SECURITIES FOR INVESTMENT ACCOUNTS,:
Total for the weds,
$8,843,000.00
Gold Certificates
$
739,420.00
69.849,860*00
$70,589,280.00
$
12,300.00
1.725,000.00,
$ 1,737,300.00
FOR RELEASE, MORNING- PAPERS,
Friday, September 28, 1934#
ÎRHÔ.SUET DEPART MENT
STATEMENT BT SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $75,000,000, or thereabouts.
They will be 182-day bills; and will be sold on a discount basis to the
highest bidders.
Tenders will be received at the Federal Reserve Banks,
or the branches thereof, up to two o»clock p. m., Eastern Standard time,
on Monday, October 1, 1934.
Tenders will not be received at the Treasury
Department, Washington.
The Treasury bills will be dated October 3, 1934, and will mature
on April 3, 1935, and on the maturity date the face amount will be payable
without interest.
They will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value)#
It is urged that tenders be made on the printed forms and for
warded in the special envelopes which will be supplied by the Federal Re
serve Banks or branches upon application therefor.
Ro tender for an amount less than $1,000 will be considered.
Each tender must be in multiples of $1,000.
The price offered must be
expressed on the basis of 100, with not more than three decimal places,
e. g,, 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorpor
ated banks and trust companies and from responsible and recognized dealers
in investment securities«
Tenders from others mast be accompanied by a
deposit of 10 per cent 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.
/V
- 2 ~
Immediately after the closing hour for receipt of tenders on
October 1, 1934, all tenders received at the Federal Reserve Banks or
branches thereof up to the closing hour will be opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and
to allot less than the amount applied for, and his action in any such re
spect shall be final.
Those submitting tenders will be advised of the
acceptence or rejection thereof.
Payment at the price offered for
Treasury bills allotted must be made at the Federal Reserve Banks in cash
or other immediately available funds on October 3, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes.
Ho loss from the
sale or other disposition of the Treasury bills shall be allowed as a de
duction, or otherwise recognized, for the purposes of any tax now or hereafter imposed "by the United States or any of its possessions»
Treasury Department Circular Ho. 418, as amended, and this notice
prescribe the terms of the Treasury bills and govern the conditions of
their issue.
Copies of the circular may he obtained from any Federal Re
serve Bank or branch thereof
t r e a su r y department
¡» " O
Washington
October 1, 1934*
memorandum f o r t h e p r e s s .
ttCEIPTS
OR SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ended September 28, 1934:
618,420.19 fine ounces
432,404.84
"
San Franci sco..............
5,462.00
"
f
Denver, ..••••••••••*•••••....... .
1,054,287.03
”
"
Total for week ended Sept, 28,,..........
13,601,000
fine
ounces
Total receipts through September 28, 1934,
SILVER TRANSFERRED TO THE UNITED STATES:
(Under Executive Order of August 9, 1934)
Philadelphia,.............•....... .... .
Week ended September 28 , 1934:
24,987 fine ounces
tt
ti
2,058,624
tt
tt
447,326
it
tt
18,170
tt
it
716
tt
tt
570
tt
tt
2,550,303
Total for week ended Sept. 28.
tt
tt
Total receipts through September 28, 1934....... 90,969,584
RECEIPTS OF GOLD BY THE MI UTS AND ASSAY OFFICES;
Week ended September 28, 1934: _____Imports—
Philadelphia.*..........*•
$ 14,941.96
New York. ...... •
---- -----417,400.00
San Francisco.. . . •
14,095.4-8
Denver.
27,384.00
New Orleans...*.••••»•••••
Seat tle.......*•••»*••■••••
■Total for week ended Sept.28 $473,821.44
Secondary
215,596,02
584,600.00
140,998.35
41,142.00
57,700.45
24,958.52
$1,054,995.34
$
$
New Domestic
----
1,603,395.69
589,384.00
2,628.52
252,006.71
$2,447,414.92
GOLD RECEIVED BY FEDERAL RESERVE BAKES AND THE TREASURER*,
S OFFICE:
(Under Secretary*s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended Sept* 26, 1934.•«••••••
Received previously.•••
Total to Sept. 26, 1934..••••••..•
Gold Coin
$
37,395,64
29,063,568.94
$29,100,9 64.58
Received by Treasurers Office:
Week ended Sept. 26, 1934... •••••«
Received previously.«••••••••..•»•
Total to Sept. 26, 1934..... .
$
~ *“ ~
-----251^89__j00
$
251,894.00
Gold Certificates,
$
599,120.00
70,589,280,00
$71,188,400.00
$
12,800.00
1,737,300.00
$ 1,750,100.00
OTE: Gold bars deposited with the New York Assay Offico to
the amount of $200,572.69 previously reported.
m m cm sss
(o h
sm s)
or
sbcobitis
foe
raasoRT
iotistmm
accounts;
fet sales for neelo ending Sept, 29, 1934....... ...... . $1,204,000,GO
TREASURY DEPARTMENT
Washington
for i m m e d i a t e r e l e a s e
October 4, 1934,
v
Press Service
j. E. T. O1Connor, Comptroller of the Currency, gave out the following state
ment today:
My attention has been called to a rather misleading editorial appearing
in a Washington paper yesterday under the heading "Bank Expenses,"
After
commenting on the fact that 94 cents out of every dollar collected by receivers
has been returned to the depositors, leaving merely 6 cents for the payment of
receivers* salaries, attorneys* fees and all other expenses of receive£siiips,
the editorial calls attention to the fact that this figure is based on the
amount collected and not on the amount the depositor thought he had in the bank.
If all of the money the depositors placed in the bank was in the bank or in
good securities it would not have closed.
Banks close because there are
losses, poor management and in some cases embezzlement.
No way has been found
yot to make collections on losses.
Again the editorial refers to "the wholesale refusal of permits to reopen
institutions closed arbitrarily in the bank holiday", and further states "It
was this arbitrary action which tied up thousands of millions of dollars of the
depositors* money about 50 per cent of which is still frozen ,
is positively false.
This statement
There were 1,417 banks under the jurisdiction of the
Comptroller of the Currency unlicensed at the end of the banking holiday on
March 16, 1933, representing $1,971,96Q,000. ' There have been reorganized
1,051 of these barks with deposits of $1,758,184,000 and in addition 28 banks
paid their depositors in full the sum of $11,051,000 and went out of business,
302 were placed in receivership with $158,^17,000 in deposits.
The fact that
a bank is placed in receivership does not mean that it will not reopen and 18
- 2 ~
0f those receivership "banks with, deposits of $10,132,000 have already nad pl.ans
approved for reopening*
These figures account for all hut 36 of the closed
national hanks after the holiday and 30 of these have plans approved for re
opening representing $41,664,000 and 6 have plans disapproved representing
$3,183,000,
The hanks with disapproved plans may he able to submit a plan
which can he approved.
Those figures have been available at all tames to newspaper men and it
is indeed unfortunate that such a false and misleading statement would he
printed*
Substantial dividends, have been paid to depositors in closed‘hanks and
there has been distributed to depositors in all closed national hanks since
March 16, 1933, over half a billion dollars, or to he exact $542,811*998,
The article is further misleading in its statement that the receivership
and conservatorship expenses in Washington hanks alone run over a million
dollars*
The same paper indicated a. short time ago that this expense
eluded-monies paid on prior liens, taxes and other items of expense,
items were paid to protect the depositors
ii
Tnese
J
|
m
TREASURY DEPARTMENT
Washington
RELEASE, AFTERNOON NEWSPAPERS,
Thursday, October 4, 1934,
Press Service
163 34
*
-
*
Address prepared for delivery by Arthur H. Kent, special counsel in
the office of the Assistant General Counsel for the Bureau of Internal
Revenue, Before the Thirteenth Annual Meeting of The American Society of
Certified Public Accountants at Atlantic City on Thursday, October 4, 1934«
TREASURY TAX PROBLEMS
It is both a pleasure and a responsibility to appear today before you
to discuss briefly a few of the problems and policies in which the Treasury
Department and the members of the distinguished and useful profession of
which you are representative are mutually interested«
It is a pleasure
"because the responsible officials of the Department from Secretary Morgenthau
down recognize in the type of constructively critical interest and cooperative
attitude which such organizations as your own nave displayed a source of
strength and of wisdom«
It is a responsibility because it is no easy task,
in the short space to "which I shall limit myself adequately to enlighten you
upon a number of the more important modifications of and developments in
Treasury policy«
Taxation and other fiscal problems of government are rapidly replacing
the weather as a favored topic of discussion, popular and otherwise*
While
such discussions too often generate more heat than light, nevertheless they
are a healthy and hopeful sign«
"Unfortunately, the search for a revenue system which is at once
scientific, equitable in its operation, and productive of large revenues is
complicated and hindered by the fact that there are few large and influential
~ 2 groups whose interest in tax policies and problems is intelligent and informed
and at the same time free from the bias of selfish or sectional interest*
The prime function of taxation is the provision of revenue adequate to the
needs of government with the least possible disturbance to essential economic
and wealth—producing processes and with a minimum of hardship and invidious
discrimination*
Our revenue laws, federal., state, and local, are in considerable measure
compromises between powerful conflicting interests and competing governments,
and molded by considerations other than by what is most beneficial or least
injurious to our economic and social order«
We may as well face the fact
that there is little hope of a durable revenue system which is scientific and
equitable in its structure and operation until there is mobilized an organized
and informed body of opinion powerful enough to overwhelm inertia and the
pressure of special interests and selfish groups»
Organizations such as your
own can contribute much to the creation of such a body of opinion.
The
Treasury Department welcomes discussion of its policies and solicits the
benefit of your criticisms and suggestions.
But the Treasury administration is not content to await the birth of a
better day through the slow processes of legislative reform*
accomplished through improvements in administration.
Much can be
Congress, it is true,
provides the essential framework, and fundamental reforms or changes must
await legislative enactment*
But after Congress has determined what sub
jects shall be taxed and how much, and has established general principles of
tax application and procedure, much still remains to be done before the
revenues in full flow come pouring into the Treasury*
Congress has implemented
the Department with great and important powers for the performance of its
part of the task.
The authority to promulgate Treasury Regulations and
Decisions is a power greater in its extent than is generally realized.
Its
- 3 exercise involves legislation as well as interpretation«
Tie rollings of
the Assistant General Counsel interpreting the revenue laws may go far to
vitalize the dry hones.of the statutory text or, on the contrary, to nullify
the legislative intent*
The attitude which animates the Bureau in its dis
position of individual cases is of the greatest consequence both from the
government's and the taxpayers' points of view*
The demands for wisdom and administrative competence on the part of the
Treasury staff are great*
By taxation or by borrowing, which, of course,
simply means deferment of taxation to the future, it must provide the financial
sinews for the great war upon depression and the grave abuses which helped to
bring it about which the people led by a dynamic President have declared*
These vast sums must be raised and aministered without scandal or waste*
The
problem of finding and retaining administrative personnel equal to such re
sponsibilities is in itself a formidable one*
Changed conditions demand correlative changes in administrative
policies and maxims*
One who has but recently entered the government
service soon discovers that the weakness of bureaucratic administration is
not lack of integrity, nor want of technical competence nor of industry*
Rather, in the language of John Stuart Mill:
"The disease which affects bureaucratic governments,
and which they usually die of, is routine*
They perish by
the immutability of their maxims; and, still more by the
universal law that whatever becomes a routine loses its
vital principle, and having no longer a mind acting within
it, goes on revolving mechanically^ tho the work it is in
tended to do remains undone."
- 4 How it should be apparent that maxims of administration and a routine
evolved in days of vast surpluses accumulating despite steady reduction of
rates and elimination of wartime taxes cannot safely be maintained under
present conditions.
Moreover, the standards and quality of government
service necessarily reflect to some extent at any given time the current
ethics of business and finance.
The age of inflated depreciation allow
ances, administrative winking at purely colorable sales, easy refunds or
compromise of taxes, and uncritical approval of so-called reorganizations
whose only intelligible purpose is tax avoidance has passed into history
along with the age, of which it was the counterpart, of bootleg fortunes,
financial buccaneering through holding company and other corporate manipu
lation, and stock market paper fortunes which would put Croesus to shame.
The present Treasury administration is determined to safeguard the rev
enues upon which both public and private credit and the hope of return to
economic stability depend not only against the more obvious dangers of out
right chicanery and fraud but the even more subtle and deadly perils of favor
itism, whether conscious or not.
So far as administration either by itself
or with the aid of legislation can do so, resort to clever legal devices for
the evasion of taxes must be stopped.
Nothing is more essential than the
maintenance of the confidence of the great body of our citizens in the integ
rity, intelligence, and disinterestedness of the administration of the revenue
laws.
The income tax law, for instance, would be well nigh unenforceable
without the honest cooperation of the great majority of taxpayers.
The pro
ductivity of the tax over a period of years and such statistical evidence,
admittedly inconclusive, as is available indicate that attempts at deliberate
tax evasion are confined to a relatively small portion of the body of tax
payers
- 5 One of the principal dangers to the revenue is undue delay in assess
ment and collection of taxes#
Such delay involves inevitable losses
through intervening insolvency, dissipation of assets# creation of prior
liens and resort to other stratagems to thwart collection.
Important changes
in procedure and organization in the Commissioner*s office have been made for
the purpose of accelerating the determination of deficiencies#
Instead of
claiming the largest possible tax and throwing on the Board of Tax Appeals
the added burden, in effect, of making the real assessment, the sending out
of deficiency letters is deferred, save in cases of jeopardy, until careful
audits and field examinations have been completed and taxpayers and their
counsel have had full opportunity to be heard#
Since deficiency letters
■under this policy are based upon the fullest information the Commissioner can
obtain, the amount of overassessment is considerably reduced and many cases
which otherwise would go to the Board are settled without appeal#
The result
is already apparent in a sharp reduction in the number and percentage of new
appeals docketed, and the alarming congestion of cases awaiting hearing.and
determination before the Board two years ago is being steadily relieved#
The Board has itself cooperated, in splendid fashion#
denied except for the most imperative reasons#
Continuances are
Every effort is made to re
duce the number of issues to be tried by the Board through conference with
taxpayers and their counsel prior to the date of trial#
In many cases a
full agreement is reached and settlement made by stipulation*
A great
majority of cases pushed to hearing before the Board result in settlement by
agreement at or before the conclusion of the hearings, thereby obviating the
necessity of Board decisions#
In the year following June 1, 1933, pending
cases were reduced from 16,902 to 11,099, and of the latter number 1,944 had
been heard and were awaiting decision#
In the same period the total amount
involved in pending litigation fell by several hundred million dollars«
A considerable volume of litigation over taxes will continue to be
inevitable«
In many cases excessive deficiency assessments will be made
because of the inability of the government to gain access to all the sources
of information necessary to accurate assessment and the correlative necessity
of fully protecting the revenue«
Bona fide differences of opinion as to the
meaning and effect of the tax statutes will continue to require resort to the
courts for adjudication«
Not infrequently it will be deemed essential by
the Bureau to maintain a doubtful position until one or more court decisions
provide the necessary administrative guidance«
But it will continue to be
one of the major objectives of Bureau policy to settle cases administratively*
whenever it can be done without jeopardizing any substantial interest of the
Government, and thereby to minimize the costs and delays incident to all
litigation*
This policy will, however, be subject to one important qualification,
viz:«, that the language of the tax statutes and the legislative intent which
they express paist be respected and given full effect«
It is no proper function
of administration to pass judgment upon the wisdom or the constitutionality of
acts of Congress«
In the framing of new regulations, legislative intent will
not be defeated by restrictive interpretation of statutes merely because a
more natural interpretation may give rise to some doubts as to constitutional
validity«
In the absence of authoritative decisions definitely establishing
unconstitutionality, it will be presumed that the law in the form in which
Congress enacted it is a valid law and the constitutional questions will be
left to the courts to decide«
The policies of protection of the revenues and strict adherence to the
mandates of the statutes reasonably interpreted have led to considerable
restrictions in the compromise of tax, interest, or penalty liabilities and
in the granting of extensions of time for payment of deficiencies«
The power
to compromise vested "by statute in the Secretary, as interpreted, is a fiscal
power and as such properly exercisable only on the basis of fiscal considera
tions, viz., doubt as to the liability of the taxpayer or as to the collecti
bility of the tax.
It should be remembered that Congress has given tax obli
gations a preference as to assets and priority of payment over general creditors
of the taxpayer.
It has decreed that such obligations shall not be affected
by discharge in bankruptcy.
policy of strict collection.
These provisions necessitate, we believe, &
Hence insolvency, much less financial stringency,
of the taxpayer does not inso facto create a ground for compromise, if by reason
of statutory preference or liens the
amount of the tax can in fact be collected
So-called "equities” or reasons of "public policy" are thereby excluded from
consideration.
It is possible to picture Uncle Sam under this policy as a Shylock de
manding his pound of flesh.
May I point out that this is a superficial and
distorted view of the situation?
and more feeling of hardship.
Taxes always create some hardships in fact
Unfortunately, in a time of economic stress
such as we have been going through the demands on federal cash and credit
increase, and taxes go up, while the capacity of many to pay decreases, there
by in many cases aggravating the hardship.
But it is also too often true
that the taxpayer*1 own improvidence and failure to set aside proper reserves
is the proximate cause of the difficult situation in which he finds himself.
Mere hardship cannot justify administrative officials in sorrendering pre
ferences or releasing liens which the law itself has created.
well-known saying that "hard cases make bad law".
There is a
It is equally true that
hard cases may produce bad administration unless caution is exercised.
Whenever a tax liability is compromised for less than the government
could reasonably expect to collect, such loss of revenue must be made good
from other sources.
It is easy to forget, in pre-occupation with so-called
cases of hardship, that a liberal policy of compromise, under presppt con
ditions at least, is hut a disguised form of robbing Peter to pay Paul. The
admission of equities and hardship as relevant factors in compromise cases
is fraught with grave dangers of favoritism and abuse. It creates discrim
ination by increasing pro tanto the burdens of thrifty taxpayers who make
provision for paying their taxes as a prior obligation or are too proud to
plead for special favors. Real equality should be the ideal of any tax ad
ministration worthy of the name. Discrimination is its most deadly enemy.
The present strict and Impartial compromise policy, however severely it may
operate in some individual cases, is surely conducive to the best interests
of the great majority of taxpayers. Certainly it is not animated by any
desire to work injustice or oppression upon anyone.
The revenue acts create no statutory right in favor of taxpayers to an
extension of time in which to pay deficiencies. They merely authorize the
Commissioner, with the approval of the Secretary, to grant such extensions
upon certain conditions and where "undue hardship" would result from en
forcing immediate payment. Manifestly mere inconvenience to the taxpayer is
not sufficient under the statute. The burden is upon him to establish some
thing more than the degree of hardship or financial embarrassment which pay
ment of taxes normally creates. Moreover, the present policy insists that
such measures be taken in individual cases as their nature permits to assure
that the risk of loss to the government will not be increased by reason of
the extension of time. In some cases this can be done by filing a saois
factory bond; in others a pledge of personal property or the conveyance ©*
real property in trust to the collector may be-the best solution; in still
others the filing of a notice of lien by the collector may be necessary. The
Bureau is, however, reluctant to file a notice of lien where to do so would
tend to paralyse the operation of a business or to hamper unduly liquidation
of the taxpayer’s assets.
- 9 The published statistics relating to refunds and abatements probably
account for the major portion of the criticisms of administrative policy in
these matters, for, unless they are subjected to careful interpretation and
explanation, they suggest a distorted picture of the true situation.
illustrations will suffice.
or because
A few
Whenever it is necessary, because of jeopardy
the statute of limitations is about to run, to make an immediate
assessment without the benefit of full investigation, the highest possible
assessment may often be made in order to protect the revenue.
Quite commonly
fuller investigation will show that the assessment is excessive and a refund
or abatement must be allowed.
In cases involving transferees» liability or
cases of consolidated or joint returns, the same deficiency in tax may be
assessed against two or more different taxpayers, although manifestly payment
in full by any one of them will extinguish the claim of the government and the
remaining assessments must be abated or written off.
In a classic case, a
one million dollar deficiency in tax was assessed against each of seventy
companies who had made a joint return and were all liable for the amount of
tax.
The bare figures in such cases convey the quite erroneous impression
that certain taxpayers have been let off scot-free from payment of large tax
obligations.
Moreover, the credits allowed under the Federal estate tax
law representing inheritance tax paid to tne State are shown in the publis ed
figures as refunds or abatements, which is also highly misleading.
The policy of administrative refunds and abatements has given rise to
widespread misunderstanding and criticism and has done more, perhaps, than
any other single factor to generate suspicion as to the integrity of t x
administration.
Yet is is apparent that a strict policy of denying all claims
for refund or abatement and of compelling taxpayers in all cases to resort to
suits in the Court of Claims or the Federal district courts for relief to
which they may be clearly entitled would create intolerable injustice.
The
~
10
-
only defensible policy is one granting relief administratively, p-ursnant to
acts of Congress,,but only where the taxpayer establishes his right so clearly
that there is little doubt he would win in court.,. Substantial doubts must be
resolved in favor of the government,, but simple fairness demands that,, when
a case of overpayment or overassessment is clearly made out,, adjustment by
way of refund or abatement should be made without furtner ado.-
You
are no
doubt aware of the fact that all claims for refund are subjected to careful
audit and investigation and are submitted for review of the action proposed by
the Bureau to the Congressional Joint Committee on Taxation where the amount
is in excess of $75,000*00
Time does not permit any extended comment upon the present policy with
relation to criminal prosecutions in cases of "fraud with intent to evade
tax"..
« d i e the policy with respect to fraud cases has irt certain respects
become more strict, there has been no relaxation in the precautions taken
to avoid groundless prosecutions-
Charges of fraud are subjected to the
most careful investigation by experienced members of the Intelligence Uniti part of its regular procedure is to afford the taxpayer an opportunity to
controvert the charges and to defend his. conduct-
The Unit recommends
prosecution in only about one-fourth the oases it investigates, which
surely does not indicate that it is suffering from a "prosecution" complex.
The recommendation and the record are then subjected to careful review by
.. w Tre In fup
experienced, attorneys
tne ppnal
renax Division
wvisiw of the Assistant General Counsel*s
office, where taxpayers and counsel are again often given a hearing. No case
is recommended to the Department of Justice for prosecution unless the re
viewing attorneys are convinced that sufficient admissible evidence to con
vict is available..
-
11
-
The extreme care with which such review is made is indicated by the
fact that only 51$ of the cases reviewed are referred out for prosecution»
The vindication of this conservative policy is a record of 93.27$ of con
victions or pleas of guilty in the cases so referred, and the persons pros
ecuted include "both the distinguished and the notorious, men of influence
and public enemies.
No change in policy has been made or is contemplated
which will impair the salutary respect which the public has for Federal cax
fraud prosecutions.
The Treasury Department does not tolerate the use of threats of criminal
prosecution to coerce taxpayers into paying or agreeing to pay proposed de
ficiencies,
As long as the taxpayer is asserting what he in good faith be
lieves to be his rights, however mistaken the Department believes him to be,
he has no ground to fear the resort to any penal sanction.
Save in occasional
cases of jeopardy assessments, not even a fraud penalty is asserted unoil
after careful investigation of the facts, a consideration of the taxpayer’s
version of the case, and review of the evidence by competent attorneys.
The
most meticulous regard for due process of law could not ask for more careful
procedure than this,
In two important instances the Bureau has modified its policy in the
direction of greater severity,
A taxpayer who has been guilty of fraud imiot
do more than make a voluntary disclosure thereof and pay the deficiency in
tax to avert criminal prosecution.
He must now pay as well the civil penalty
Of 50$ of the tax and interest at the rate of 12$ fixed by the statute. Would
anyone assert that such a penalty constitutes a cruel and unusual punishment
or that its severity is disproportionate to the gravity of the offense?
Some
thing more than voluntary confession is necessary to discourage fraud on ohe
revenues,
« 12
Tlie other sharp reversal of policy has to do with fictitious scales.
Ttie policy is "based upon the premise that the use of purely colorable or
fictitious sales of stocks or other securities for the purpose of establish
ing deductible losses in. a fraud on the revenues and should he dealt with in
the same manner as other species of fraud and deception.
The taxpayer who
sells his securities in good faith at a loss has nothing to fear if he claims
a deduction, hut it must he a sals, not a mere semblance of one.
You are no
doubt familiar with some of the devicos, devious and ingenious, which un
scrupulous taxpayers and their counsel have resorted to in an endeavor to take
unconscionable advantage of provisions of the statute intended to encourage
and protect legitimate business and investment transactions.
Sales were made
to wives, relatives, family corporations, and others which the vendee never
knew about.
Securities worth a fortuno were transferred to persons without
resources upon security no better than a bare promissory note. The present
policy simply insists that the appearance of sale is not enough, unless
intent to sell and good faith be present.
If some taxpayers have relied on
Treasury approval of such practices, because of past experience or poor ad
vice, to thoir present discomfiture, it only romains to remind, thorn that noithej
law nor good morals recognizes vested interests in tax evasion.
Your profession numbers among its members many who have rendered -useful
and valuable service to taxpayers in the proper presentation of their claims
and defenses before the Bureau of Internal Revenue, the office of the
Assistant General Counsel for the Bureau, and the Board of Tax Appeals.
Such
service, animated by loyalty to professional ideals and to the legitimate
interests of the client, is as essential to sound and just tax administration
from the Government's as from the taxpayer's point of view. Incompetence
lack of character on the part of members of the Treasury Bar are equally
dangerous to both.
The Government is composed of fallible ™
beings who,
- 13- hpwever honorable and fair minded they may be, can and sometimes do make mis
takes.
Moreover, many of them show a natural and proper tendency to resolve
doubts in favor of the Government by which they are employed, however sincere
their desire may be to treat fairly and without discrimination all taxpayers
with whom they have occasion to deal, whether they be represented by counsel
o? not.
Counsel who limit their zeal to vigorous advocacy and defense of
their clients* rights under the law, who do not resort to improper solicita
tion or claims of personal or political influence to procure business, and who
are frank and courteous in their dealings with the representatives of the
Government are a credit to the Treasury Bar.
its members are of that character.
Fortunately, a large part of
Unfortunately, a considerable number are
not.
In order to protect the revenues, the body of taxpayers, and honorable
practitioners from the nefarious activities of this minority, the Treasury De
partment has for many years promulgated regulations governing admission to
practice before the Department and establishing certain standards of conduct,
disregard of which was made the basis for withdrawal, tenporarily or permanent
ly, of the privileges thus conferred.
Machinery for the endorsement of the
regulations was set up in the form of a Committee on Enrollment and Disbarment
to hold hearings on charges preferred against enrolled attorneys or agents and
submit findings of fact and recommendations to the Secretary of the Treasury
as a basis of action.
Many unworthy members have in this manner been
eliminated from the rolls.
While much good work has teen done, time and experience have revealed
weaknesses and inadequacies in the regulations and the machinery set up for
their enforcement which required correction.
,
- 14 As a first step a new Committee of three members has been constituted,
none of whom are to be otherwise officially connected with the Department.
The high character and competance of the new appointees and the simple but
carefully considered procedure under which they will operate provide ample
guarantees that they will function as a shield for the innocent as well as
a sword against the guilty.
The attorney or agent who has had his day in
court before this Committee and has on the basis of the evidence been found
guilty of infraction of the regulations warranting disciplinary action will
indulge in a vain hope if he expects to resort to political influence to
save him.
The chairman of the new Committee is Doctor Walter W. Cook, an eminent
legal scholar and for years one of the leaders of the Institute of Law at
Johns Hopkins.
His colleagues are Judge Lawrence Becker, whose years of
experience as attorney for the Government before the old Committee will be
of great value to the new, and Mr. Irvin H. Gilruth, a public-spirited law
yer of high character and judicial temperament, who has had many years of
experience in grievance committee work as a member of the Chicago Bar Asso
ciation,
The appointment of a new attorney who will devote his full time
to representing the interests of the Government before the Committee will
soon be announced.
There will be promulgated shortly a new Department Circular Ho. 230
containing the revised regulations.
I regret to say that time does not per
mit my commenting upon them in detail.
They incorporate the results of past
experience and the best thought of a considerable number of competent persons.
Tentative drafts have been submitted for critical study to representatives
of the American Bar Association and to officers of your own and allied or
ganizations,
The regulations as published will have benefited by their
cooperation and will at numerous points bear the marks of their suggestions.
- 15 Many of the problems dealt with have been inherently difficult and
have given rise to divergences of opinion which have been resolved by full
and free discussion.
I have no hesitation in stating that the new regular-
tions and the machinery set up for their administration and enforcement
represent a large step in advance.
These charged with the duty of preparing the new regulations and those
who have the responsibility for their proper enforcement have been and will
be animated by three paramount purposes:
(1) the protection of the revenues
of the United States, as a trust, against fraud and waste; (2) the protection
of taxpayers against unscrupulous solicitation and dishonest advice which
lead them into unnecessary trouble and controversy with the Government, (3)
the protection of honorable lawyers and agents who give their clients honest
service and faithful advice, against the unfair competition of tricksters
who rely as their stock in trade, not upon professional competence and the
merits of their cases, but upon fraudulent and unethical practices or false
pretensions to influence.
In addition, effort has been made, the success of
which you will soon be able to judge, to make the regulations, so far as
practicable, a document of educational value from the point of view of those
many persons enrolled as agents who are neither licensed attorneys nor
certified public accountants and who have not enjoyed the advantages that
come from membership in a professional organization such as your own which
has promulgated a code of ethics for the guidance and goverance of its memrbers.
At the same time we have sought to avoid any captious interference
with or needless vexation of those members of the Treasury Bar whose practices
are conducted upon the basis of high ethical standards and professional
competence.
Moreover, there will be a noticeable stiffening in the scrutiny
to which applicants for enrollment are subjected, with respect to education,
character and reputation, experience, and professional and technical ability*
16
-
Steps will also "be taken to eliminate deceased or inactive members from the
roster and to keep it up to date.
The regulations relating to fees will
be considerably modified with a view to restricting the activities of tnose
who would reduce uractice before the Department to the status of a commer
cialized racket.
An effort will be made in cases of filing of false returns,
to locate the responsibility for the fraud where it belongs, whether it oe
upon the taxpayer or his counsel.
The Treasury, being vested with the powers and duties of the tax;
gatherer, can never hope for popularity nor perhaps,, for general understand
ing,
But in the troubled years through which we have come,, when the credit
of banks, business and municipal governments has trembled in the balance,,
the Treasury Department has maintained the credit of the Federal Government
secure against the storm.
Its present policies in tax administration are
animated by a high sense of its great responsibility for the integrity of
the revenue system which forms the cornerstone of economic solvency and
future reconsturction.
treasury
immmm
FOR r e l e a .s e , m o r e i e g p a p e r s ,
Friday, October 5, 1934,
STATEMENT BY SECRETARY MORGEETHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts*
They will be
i 182-day bills; and will be sold on a discount basis to the highest bidders*
ITenders will be received at the Federal Reserve Ranks, or the branches thereof,
up to
two o1clock p. m., Eastern Standard time, on Monday, October 8, 1934.
Tenders will not be received at the Treasury Department, Wasnington.
The Treasury bills will be dated October 10, 1934, and will mature on
April 10, 1935, and on the maturity date the face amount will be payable with
out interest*
They will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity
I value).
It is urged that tenders be made on the printed forms and forwarded in
I the special envelopes which will be supplied by the Federal Reserve Banks or
| branches upon application therefor*
Eo tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000*
Each tender
The price offered must oe expressed on the
basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions
must not be used*
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities*
Tenders from others mast be accompanied by a deposit of 10 per
j cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company,
Immediately after the closing hour for receipt of tenders on October 8,
1934, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final.
Those sub
mitting tenders will be advised of the acceptance or rejection thereof.
Pay
ment at the price offered for Treasury bills allotted must be made at the
federal Reserve
Banks in cash or other immediately available funds on October
10, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes.
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice pre
scribe the terms of the Treasury bills and govern the conditions of their issue
Copies of the circular may be obtained from any Federal Reserve Bank or branch
thereof
TREASURY DEPARTMENT
Washington
October 5, 1934.
MEMORANDUM FOR THE PRESS
Reference is made to Press Service No. 3-24 released for after
noon papers, Friday, October 5, 1934,
The last paragraph and the t^ble showing the value of coins on
hand at the Philadelphia, Denver and San Francisco mints should be
corrected to read as follows:
A statement of unencumbered balances of subsidiary silver and minor
coins at United States mints on dates indicated, the latest av^il& e»
follows:
Mint, Philadelphia
October 2
Halves
$133,000
Mint, Denver
October 2
Mint, Sgn Francisco
September 28
$220,000
$1,000,000
Quarters
224,000 short
141,000
522,000
Dimes
229,000
144,ooq
369,000
85,000
27,000
488,000
31,000
190,000
Nickels
Cents
8,000 short
TREASURY DEPARTMENT
Washington
m m m iM
October 8, 1934.
FOR THE PRESS.
gUlPTS OE SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
leek ended October 5, 1934;
Philadelphia..... ...... ......... ..
San Erancisco.......... ................
Denver, a •••••••••.... ..................
Total for week ended Oct. 5 .... ....
Dotal receipts through October 5, 1934 ....
616,739.29 fine ounces
2,065.11
11
"
1,834.00
n
»
620,638.40
M
H
14,222,000.00
«
M
SHYER TRANSFERRED TO THE UNITED STATES!
(Under Executive Order of August 9, 1934)
feek ended October 5, 1934;
Philadelphia............... .......
8,756.00 fine ounces
New Y
o
r
k
.
1,649,400.00
San Francisco*. ••••••. ...... .
811,561.00
Denver. •••••••»••••••••••••••••..•.... *
701.00
New Orleans.
..... ••»••••«
797.00
Seattle............. .......................... 3,594.00
»
*
Total for week ended Oct, 5 ,«••«••••
2«474,809.00
Total receipts through October 5, 1934 •••• 93,444,393.00
RECEIPTS OE GOLD BY THE MINTS AND ASSAY OEEICES;
leek ended October 5, 1934:
Philadelphia.
New York.
San Francisco.••••••••••••••••
Denver. •«••••••••...... .
New Orleans.••••••••••••••••••
Seattle.
Total for week ended Oct.5;,
_______Imports
$
7,695.84
1,091,000.00
44,414.27
18,273.00
2,424.12
$ 1,163,807.23
S ec ondary
$ 346,882.75
167,995.55
49.637.00
77,049,21
27.822.01
$ 669,386.52
New
Domestic
$
544.11
1,104,600.00
1,219.452.23
536,868.00
282.71
21,583,99
$2,883,331.04
ISOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER! S OFFICE;
(Under Secretary's Order of December 28, 1933)
Beceived by Federal Reserve Banks:
leek ended October 3, 1934.......
Beceived previously.
Total to October 3, 1934....... .
Beceived by Treasurer's Offi ce:
Week ended October 3, 1934..... .
Beceived previously.........
Total to October 3, 1934 ........
Kl:
Gold Coin
$
48,997.44
29,100,964.58
$29,149,962.02
Gold Certificates
$
892,270.00
71,188,400.00
$72,080,670.00
$
$
$
908.00
251,894.00
252,802.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572.69 previously reported.
18,400.00
1,750,100.00
$ 1,768,500.00
TREASURY DEPARTMENT
EOR RELEASE, MORNING- PAPERS
Friday, October 12, 1934,:;
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $75,000,000, or thereabouts*
They will he 182-day hills; and will he sold on a discount basis to the
highest bidders. Tenders will he received at the Federal Reserve Banks,
or the branches thereof, up^to two o’clock p.m,, Eastern Standard time,
on M0nday, October 15, 1934. Tenders will not he received at the
Treasury Department, Washington.
The Treasury hills will he dated October 17, 1934, and will
mature on April 17, 1935, and on the maturity date the face amount
will oe payable without interest. They will he issued in hearer form
.only, and in amounts or denominations of $1,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and
forwarded in the special envelopes which will he supplied by the Federal
Reserve Ranks or branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
Each tender must he in multiples of $1,000. The price offered must he
expressed on the oasis of 100, with not more than three decimal places,
e.g,, 99.125. Fractions must
he used.
Tenders will he accepted without cash deposit from incorpor
ated hanks and trust companies and from responsible end recognized
dealers in investment securities. Tenders from others must he accom
panied by a deposit of 10 per cent of the face amount of Tro.asury hills
applied for, unless the tenders are accompanied by an express guaranty
of payment by an incorporated hank or trust company.
- 2 -
Immediately after the closing hour for receipt of tenders on
October 15,' 1934, all tenders received at the Federal Reserve Banks or
tranches thereof up to the closing hour will be opened and public
announcement of the acceptable prices will follow as soon as possible
thereatter, probably on the following morning. The Secretary of the
Treasury expressly reserves the right to reject any or all tenders or
parts of tenders, and to allot less than the amount applied for, and
his action in any such respect shall be final. Those submitting tenders
will be advised of the acceptance or rejection thereof. Payment at
the price offered for Treasury bills allotted must be made at the
1 Federal Reserve Banks in cash or other immediately available funds on
i October 17, 1934.
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will a,lso be
exempt, from all taxation, except estate and inheritance taxes. No loss
from the sale or other disposition of the Treasury bills shall be allowed
as a deduction, or otherwise recognized, for the purposes of any tax.now
or hereafter imposed by the United States.or any of its possessions.
Treasury Department Circular No. 418?
amended, and this
notice prescribe the terms of the Treasury bills and govern the conditions
of their issue. Copies of the circular may be obtanned from any
Federal Reserve Bank or branch thereof
TREASURY DEPARTMENT
Washington
release, u p o n d e l i v e r y ,
)
Friday, October 13, 1934, 10:00 p.m.
10-11-34
Press Service
Radio address of Honorable J. E. T. 0 !Connor, Comptroller of the Currency
over Station WOL, Washington, D.C., to he broadcast over the following stations
of the American Broadcasting System: WCBM, Baltimore; WDEL, Wilmington, Dela
ware; WTNJ, Trenton; WIP, Philadelphia; WMCA, New York; WEED'S', Boston; WPRO,
Providencef October 12th, 1934, 10:00 to 10:15 P.M., Eastern Standard Time.
THE PRESIDENT AND THE BANKS
MY friends:
Permit me to thank the National Democratic Committee
privilege of giving you a brief message.
of the Government and the banks?
f ir
the
How many of you know the real story
While the limited time allotted will permit
"but a brief review, will you bear with me?
On Saturday, March 4th, 1933, the
clear, firm voice of President Eranklin Delano Roosevelt was carried into every
corner of our land and to distant parts of the world, as he delivered his
Inaugural Message.
He advised the Nation that he would ask for extraordinary
powers to meet an extraordinary situation, and Congress placed in his hands
greater power than a Chief Executive ever before exercised in our history.
Per
mit me to tell you how that power was wielded in connection with the banks.
one o!clock
At
Monday morning, March 6th, the President issued his first proclama
tion and every bank was closed.
Credit was not available; gold, silver and
currency were locked in steel vaults; commerce was paralyzed and a hundred and
twenty million people, with fear in their hearts, tears in their eyes and a
prayer on their lips, look to the New Leader.
ginning for a new Administration]
in more discouraging circumstances?
He did not fail.
Can you name a President who assumed office
Lincoln?
No.
gathering but they did not break for over a month.
had three supreme leaders —
Delano Roosevelt.
What a be
True, war clouds were
In three great crises we
Abraham Lincoln, Woodrow Wilson and Franklin
W
- 2 ~
w
At the end of the so-called Banking Holiday, there were 1,417 "banks under
the jurisdiction of the Comptroller of the Currency which did not reopen. These
banks contained $1,971,960,000,
Can you visualize the distress of the millions
of people suddenly deprived of their savings, and of "business organizations with
out funds to meet current expenses?
President directed attention.
This was the first problem to which the
He gave the order — these banks must be re
opened as speedily as possible and the money released.
The major part of a
large office building was taken over; several hundreds of trained men and women
were called to serve*
Late into the night they worked; ¿telegrams were sent and
received by the thousands; letters averaged over seven thousand per week. It is
useless to try to paint the picture.
Nineteen months have passed and you have
a right to ask what has'been accomplished.
Out of the 1,417 closed banks, 1,056,
with deposits of $1,777,459,000 have been reopened. In addition, 29 banks paid
their depositors in full in the sum of $11,104,000 and discontinued business,
while 299 are in receivership with deposits of $157,225,000, of which depositors
have already received $40,296,379«
Of the 299 banks in receivership,.16 have
received approved plans for reorganization, which will release an additional
$9,587,000.
This leaves only 33 banks out of the 1,417, and of these, 27 with
deposits of $24,409,000 have approved plans for reopening, while 6 with deposits
of $3,183,000 have disapproved plans. . Please bear in mind that these figures
refer only to national banks and banks in the District of Columbia, and not to
state institutions.
tanks in liquidation.
The Federal Government has no jurisdiction over state
However, the various State Banking Commissioners have
worked diligently in solving the problems of the state banks and trust companies, ■
The President not only solved the problem as indicated in connection with
the unlicensed national banks, but recognizing the necessity for a sound banking
structure in the Nation, he appointed a Committee about a year ago, to be exact
October 23,. 1933, naming Honorable Harvey Couch, a member of the Board of
Directors of the Reconstruction Finance Corporation, as its Chairman and including
?- 3.other officials of the Government.
The objects of this committee can best be
expressed in the President's own words, ”We hope”, President Rossevelt said, in
announcing the creation of this division, "that all banks will take advantage of
thip opportunity to put themselves in an easy cash position to help in tne work
of recovery.
We need the banks and want them to have adequate capital*
As a
rule such capital cannot now easily be found in the communities. As recovery
continues, such capital will be found. But in the meanwhile and temporarily, but
for such length of time as may be necessary, the Government will supply the neces
sary capital through the Reconstruction Finance Corporation in its purchase of
preferred stock.
The Reconstruction Finance Corporation will thus serve as a
recovery finance corporation*
’"Phe banks must feel free to function well and the Government will help
them prepare themselves to play their important part.
"To accept the Government's offer to purchase preferred stock does not mean
that a bank is weak, but that it is eager to cooperate in the recovery effort to
the fullest possible extent, and thus undertake to put this additional capital
to work.
We are not thinking of idle capital.
We are thinking of working
capital — capital working for recovery.”
This committee went diligently to work and met several days a week at 5500
p, m,, continuing until all pending applications were disposed of. The results
are gratifying.
The Reconstruction Finance Corporation has authorized the e2N*j
penditure of $1,104,674,639 to October 1st, of this year, in loans on preferred
stock of banks and trust companies, subscriptions, for the preferred stock of such
institutions, purchases of capital notes and purchases of debentures.
Of this
amount, $882,831,022 has actually been disbursed.
There was another problem with reference to the closed banks in which the
President was deeply concerned.
He insisted that as much money as possible be
made immediately available to depositors in closed banks, Ho one appreciated
more than he did the distress of our people who were denied access to their own
- 4 money«
The old method of paying depositors was to collect all notes in the
closed "banks, sell whatever collateral was attached to them and foreclose on
farms, homes and "buildings*
This the President opposed and he directed that
the assets of these hanks he appraised and the highest possible sum he loaned
against the assets and distributed to the depositors*
For this important work,
the President appointed about a year ago, to he exact October 15, 1933* a com—
t
mittee: to carry out his plan^
■.V
..»
•
: :
Honorable 0. B. Merriam, a member of the Board
of Directors of the Reconstruction Finance Corporation, was named Chairman and
the committee was composed of other heads of the various departments*
connection, the President said:
In this
”It is estimated that the maximum loanable
value of the assets of banks closed during the year 1933 will not exceed
$1,000,000,000, and it is hoped that the distribution will approximate that
amount,”
ing to
Up to October 10th, 1934, the Corporation had authorized loans amount
$990,728,563 to aid in the reorganization or liquidation of closed banks
and trust companies, state or national.
Of this amount., $631,454,257 had act
ually been disbursed to those institutions by that date*
Permit me to enrphasiz
the fact that there has been no discrimination between state institutions and
national institutions in giving this aid.
It was indeed an honor to be selected to serve on the boards of these com
mittees appointed by the President, and having participated in their work, I am
in a position to speak authoritatively about what has been accomplished,,
It must be clearly understood that this huge, sum does not include all of
the dividends received by depositors in closed state and national banks*
This
merely represents the amount loaned by the Reconstruction Finance Corporation,
Besides this figure, there was distributed to, depositors cash realized from col
lections by the various banks throughout, the country.
The depositors in closed
national banks from March 16, 1933, up to the present time, which covers the
'period of the Roosevelt Administration,, have received over a half a billion
dollars, or to be exact $544,435,625*
- 5 The Administration has reason to he proud of this record,, and what nas "been
stated would he sufficient to earn the lasting gratitude of the people,.hut even
more has been done.
For the first time in the history 0f this, country,, de
positors feel secure in the knowledge that their deposits are insured up to
$5,000 by a Federal agency —
The Federal Deposit Insurance Corporation,
teen thousand banks are members of the Insurance Fund,.
Four
Only five small barks
have failed during the first nine months of the present year-, with aggregate de
posits of $1,478,371.
The assets in these banks have a high recovery value and
while the depositors have been paid in full by the Federal Deposit- Insurance
Corporation up to the limit of its liability, the loss to the Corporation, will
he negligible.
It is interesting to note that the income of the Federal Deposit
Insurance Corporation from its investments exceeds $22,.000 per day.
tion has been called to the five failures.
ing a period of twelve years —
Your atten
Compare this with tne failures dur
1921 to 1932 —
when 6,974 banks, with aggregate
deposits of $2,893,827,000, failed in the United States during the first nine
months only of such years.
The five failures, tnerefore, in nine montns are in
marked contrast to the average of 581 failures and average deposits of
$241,152,000 throughout the first nine months of the 12 years ending with 1932,
Honorable Leo T. Crowley of Wisconsin, is Chairman of this Corporation, and I
have the honor to serve on the Board of Directors,
The record is made,
A large share of the credit must go to the driving
yot>
inspirational force of the President and the magnificent cooperation of nis two
secretaries of the Treasury, the late William H. Woodin and Henry Morgenth.au, Jr,
It is impossible to conceive of a finer spirit of helpfulness and sympatnetic
pnderstanding than exhibited by these men in aiding the work of tne Comptroller
of the Currency.
To have had a small part to play in this important work will
he a cherished memory and an incentive to go forward and finisn the task,
problems arise daily*
Rapid changes demand new laws and amendments to old
statutes with one purpose in mind —
for the nation.
Hew
a sounder and a better banking structure
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
October 12, 1934*
Press Service
Secretary of the Treasury
Morgenthau today announced that approximately
$1,870,000,000 of the outstanding 4-1 /4 percent Fourth Liberty Loan bonds of
1933-38 have been called for redemption on April 15, 1935,
The bonds included
in this third call for partial redemption are those bearing serial numbers
ending in the digit
5, 6 ,
or 7
•
One year ago approximately $6,268,000,000 of the Fourth 4—l/4*s were out
standing,
On October 12, 1933,about $1,880,000,000 of the bonds were called
for redemption on April 15, 1934 and on April 13, 1934, about $1,250,000,000
were called for redemption on October 15, 1934.
Accordingly one-half the out
standing Fourth Loan was included in the first two calls.
Through refunding -
during the past year about $2,750,000,000 of the bonds of this Loan have been
exchanged for other interest-bearing obligations of the United States, while
about $380,000,000 of the bonds included in the first two calls either have
been paid or will be paid in cash.
The Secretary invites the attention of holders of the bonds included in
the third call for redemption to the fact that interest on such bonds will
cease on April 15, 1935, and states that it is probable that prior to that
date the holders may be offered the privilege of exchanging their called bonds
for other interest-bearing obligations of the United States.
The text of the formal notice of call is as follows:
FOURTH LIBERTY LOAN 4-1/4 PERCENT BONDS OF 1955-38
NOTICE OF THIRD CALL FOR PARTIAL REDEMPTION BEFORE MATURITY
To Holders of Fourth Liberty Loan 4-1/4 percent Bonds of 1955-58 and Others•
Concerned:
Public notice is hereby given:
1. All outstanding Fourth Liberty Loan 4-1/4 percent bonds of 1933-38
(Fourth 4-l/4’s) bearing serial numbers the final digit of which is 5, 6 ,
or 7
(such serial numbers in the case of permanent coupon bonds being pre
fixed by the corresponding distinguishing letter e , e ,
or
Q- 5 respectively),
are hereby called for redemption on April 15, 1935, on which date interest on
such bonds called for redemption will cease.
2. This third call for partial redemption is made pursuant to the provi
sion for redemption contained in the bonds and in Treasury Department Circular
No. 121, dated September 28, 1918, under which the bonds were originally
issued, the bonds to be redeemed having been determined by lot in the manner ;
prescribed by the Secretary of the Treasury.
3. Outstanding Fourth 4-1/4’s bearing serial numbers (and prefix letters)
other than those designated are not included in or affected by this third call
for partial redemption.
Holders of Fourth 4-1/4’s now called for redemotion on April 15, 1935,
may, in advance of that date, be offered the nrivilege of exchanging their
third-called bonds for other interest-bearing obligations of the United States,
in which event public notice will hereafter be given.
Full information regarding the presentation and surrender of Fourth 4-1/4 ’s
under this call is given in Derartmont Circular No. 525, dated October 12, 1.34.
HENRY UORCMTHLU, JR.,
Secretary of the Treasury
Treasury Department,
Washington, October 12, 1934.
Fourth 4-1/4’s bearing serial numbers ending in 1, 2, 8 , 9 or 0, have
heretofore been called for redemption.
aO
TREASURY DEPARTMENT
Washington
October 15, 1934
IM EOR THE PRESS
y U P T S OP SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ended October 12, 1934:
San F r a n c i s c o .........................................................................................
Denver.................................................................. ............................................
.........
Total for week ended Oct. 12 ..........
Total receipts through Oct. 12, 1934 ..... .
604,868.44 fine ounces
4,607.00 "
"
in
609,475.44 u
14,831,000.00 fine ounces
SILVER TRANSFERRED TO THE UNITED STATES:
(Under Executive Order of August 9, 1934)
Week ended October 12, 1934:
P h i l a d e l p h i a ....................... .........................................
New Y o r k ............ ...........
San Francisco ............... .
D e n v e r ......................................... ...........................................
New Orl e a n s ........ .......... .
S e a t t l e ................... ..................... ..................................
Total for week ended Oct. 12
Total receipts through Oct. 12, 1934,
12,296;00
1,562, 895.00
1,254,827.00
902.00
432.00
2,596.00
2,833,948.00
.. 96,278,341.00
..
..
fine ounces
it
ti
it
It
II
II
II
it
h
h
it
it
it
ti
’FICES:
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES!
Week ended October 12, 1934
Philadelphia ..
I New York ......
San Francisco .
Denver . . . . . . . .
New Orleans •..
Imports
$
—
23,900.00
65,430.86
48,782.00
4,596.29
S e a t t l e ................ ......
Total for week ended Oct. 12, 1934,
$142, 709.15
New
Domestic
Secondary
150.,95
$ 238,092.35 $
541,800.00
129, 798.68 1,718,580.,52
835,920.,00
45,759.00
497,,41
39,092.26
256,428.,15
24,668.10
$1,019,210.39 $2,811,577,,03
COLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary's Order of December 28, 1933)
Received by Federal Reserve Banks;
____G-old Coin
Week ended October 10, 1934 ........$
36,285.78
Received previously ................ 29,149,962.02
Total to October .10, 1934 ..........$29,186,247.80
Gold Certificates
$
839,990.00
72,080,670.00
$72,920,660.00
Received by treasurer's Office:
Week ended October 10, 1934 ....
Received previously............... _
Total to October 10, 1934
9,800.00
1,768,500.00
$ 1,778,300.00
ROTE:
252,802.00
252,802.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572.69 previously reported.
TREASURY DKPARTMSNT
Washington
October 18, 1934,
MEMORANDUM ROR THB PRESS:
Miss Ann Gibbons, daughter of Stephen B. Gibbons, Assistant
Secretary of the Treasury, has accepted an invitation to act as
sponsor of the Coast Guard cutter MOHAWK which is scheduled to be
launched at the plant of the Pusey & Jones Company, Wilmington,
Delaware, on October 23rd*
The MOHAWK, is the last of three Coast Guard cutters built
at the plant of the Pusey & Jones Company to be launched.
165-feet in length, displacement 1000 tons.
and draft 13 feet.
She is
Thirty-six foot beam,
Her turbino-geared engines develop about 1500
horsepower, and she will have a speed of about 15 knots^
The hull
of the MOHAWK is of unusually heavy plating, and her stem sheered so
as to permit her to plow through the ice, thus permitting her to
open up channels to ice—locked harbors and shipping during severe
winter seasons.
TREASURY DEPARTMENT
EOR RELEASE, MORNING- PAPERS,
Friday, October 19, 1934*
STATEMENT BY SECRETARY MORGENTHAU
Tlie* Secretary of the Treasury gives notice that tenders are invited
for Treasury hills to the amount of $75,000,000, or thereabouts.
They will
be 182-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will he received at the Federal Reserve Banks, or the branches thereof,
up to two o*clock p. m . , Eastern Standard time, on Monday, October 22, 1934.
Tenders will not be received at the Treasury Department,
"Washington.
The Treasury bills will be dated October 24, 1934, and will mature
J
on April 24, 1935, and on the maturity date the face amount will be payable
without interest.
They will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered.
tender must be in multiples of $1,000.
Each
The price offered must be expressed
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accented without cash deposit from incorporated
tanks and trust companies and from responsible and recognized dealers in
investment securities*
|
Tenders from others must be accompanied by a deposit
of 10 per cent 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.
I
®L
-
2
~
Immediately after the closing hour for receipt of tenders on
October 22, 1934, all tenders received at the Federal Reserve Banks or
tranches thereof up to the closing hour will he opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning.
The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and to
allot less than the amount applied for, and his action in any such respect
shall be final.
Those submitting tenders will be advised of the acceptance
or rejection thereof.
Payment at the price offered for Treasury bills al
lotted mast be made at the Federal Reserve Banks in cash or other immediately
available funds on October 24, 1934,
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes,
No loss from the
sale or other disposition of the Treasury bills shall be allowed as a deduc
tion, or otherwise recognized, for the purposes of any tax now or hereafter
imposed by the United States or any of its possessions.
Treasury Department Circular No, 418, as amended, and this notice
prescribe the terns 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 thereof
TREASURY DEPARTMENT
Washington
ffMORANDUM EOR THE PRESS,
October 22, 1934.
BECEIPTS OF SILVER BY THE MINTS:
(Under Executive Order of December 21, 1934)
leek ended October 19, 1934:
San Francisco....«.
«
.
.
i
705,425.62 fine ounces
6 ,7 8 0 .0 0
Denver.... ....................... .
Total for week ended Oct. 19.•••••••••«••. •’ 712,205.62
Total receipts through October 19, 1934..,.,•* 15,544,000.00
"
»
H
SILVER TRANSFERRED TO UNITED STATES:
! (Under Executive Order of August 9, 1934)
|feek ended October 19, 1934:
Philadelphia.......••............• •••
New York
San Francisco .......•••;.••••••••••.•
Denver*.-....•-••.... ..........'. ...•••
New Orleans...••••••«•••••• ••••••••
Seattle............• ••.• •...• •• • *•*• •
'
Total for week ended Oct. 19......•
Total receipts through October 19, 1934
.
.
,
4,397.00 fine ounces
9410152.00 %
11
81s275.00 M u
16j403.00 M
H
..
666.00
.
234.00
. 1,044,127.00
. 97,322,468.00
»
M
“
M
H
11
11
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
leek ended October 19, 1934:
Philadelphia .o.o«.......
New York •••••••... ••••
San,Francisco..••••••••••
Denver.
New Orleans.............•
Imports
^843,600.00
11,409.63
24,230.00
866.48
Seat tie..................
Total for week ended Oct.19
$880,106.11
New
Secondary
$ 286,711.00
959,900.00
164,596.99
56,689.00
50,898.57
17,763.81
$1,536,559.37
Domestic
$
1,225.26
■nm!<»■*
878,944.77
896,109.00
1,778.61
540,673.87
$2,318-731.51
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE. TREASURER1S OFFICE:
(Under Secretary's Order of December 28, 1933)
Received by Federal Reserve Banks:
leek ended Oct. 17
Received previously.••••••••••••.
Total to Oct. 17, 1934........ .
Gold Coin
$
39,479.79
29,186,247.80
$29,225,727.59
Received by Treasurer's Office:
leek ended Oct. 1 7 . . • •
Received previously. ••••••••....«
Total to Oct. 17j 1934...........
$
___ 252,802.00
$ 252,802.00
Gold C e r t i f i c a t e s
$ 703,930.00
72,920,660.00
$73,624,590.00
$
8,600.00
1,778,300.00
$ 1,786,900.00
NOTE: Gold bara deposited with the New York Assay Office to
the amount of $200,572.69 previously reported.
FOR RELEASE, MORNING PAPERS
Friday, October 26, 1934.
TREASURY department
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts.
They will he 182-day
bills; and will he sold on a discount basis to the highest bidders.
Tenders will
be received at the Federal Reserve Banks, or the branches thereof, up to two o’clock
p.m., Eastern Standard time, on Monday, October 29, 1934»
Tenders will not be
received at the Treasury Department, Washington.
The Treasury bills will be dated October 31, 1934, and will mature on May 1,
1935, and on the maturity date the face amount will be payable without interest.
They will be issued in bearer form only, and in amounts or denominations of $1,000,
|$10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve Banks or branches
upon application therefor.
No tender for an amount less than $1,000 will be considered.
mst be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions
must not be used.
Tenders will be accepted without cash deposit from incorporated- banks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per cent
of the face amount of Treasury bills applied for, unless the tenders are accompanied
ty an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on October 29, 1934,
all tenders received at the Federal Reserve Banks or branches thereof up to the
closing hour will be opened and public announcement of the acceptable prices will
follow as soon as possible thereafter, probably on the following morning* The
Secretary of the Treasury expressly reserves the right to reject any or all tenders
or
parts of tenders, and to allot less than the amount applied for,- and his action
inany such respect shall he final.
Those submitting tenders will he advised of
the acceptance or rejection thereof.
Payment at the price offered for Treasury
tills allotted must he made at the Federal Reserve Banks in cash or other immedi
ately available funds on October 31, 1934.
The Treasury hills will he exempt, as to principal and interest, and any gain
from the sale or other disposition thereof will also he exempt, from all taxation,
•except estate and inheritance taxes.^
Do loss from the sale or other disposition
of the Treasury hills shall he allowed as a deduction, or otherwise recognized, for
'the purposes of any tax now or hereafter imposed by the United Spates or any of its
possessions.
Treasury Department Circular Ho. 418, as amended, and this notice prescribe
the terms of the Treasury bills and govern the conditions of their issue<> Copies
Hi the circular may he obtained from any Federal Reserve Bank or branch thereof.
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS:
October 29, 1934.
RECEIPTS OE SILVER BY THE MINTS:
(Under Executive Order of December 21, 1933)
Week ended October 26, 1934:
260.363.13 fine ounces
San Francisco............. .... .
it
8,537.00 »
Denver... ........ ...... .
it
268.900.13 «
Total for week ended Oct. 26....... .
it
Total receipts through October 26, 1934...,.* 15,813,000.00 ”
SILVER TRANSFERRED TO TEE UNITED STATES:
(Under Executive Order of August 9, 1934)
Week ended October 26, 1934:
Philadelphia.......... .
21,254.00 fine ounces
New York.......... .....
637,945.00 . ,f
San Francisco....................
84,695,00 ,f ,f
Denver.......................
1,359.00
n
11
New Orleans.........
694.00
rf n
Seattle.. ............
522.00
,f •
Total for week ended Oct.26....
746,469.00 ,f
Tbtal receipts through Oct.26,1934.. 98,068,937.00 rt
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
Week ended October 26, 1934:
Philadelphia....,.... ..
New York........ .
San Francisco...............
Denver...... ... .
New Orleans...... .
Seattle................
Total for weekendedOct.26
Imports
$ 14,357.42
2,196,800.00
37,594.27
19,136.00
1,615.13
...... .■»»
$2,269,502.82
Secondary
$ 326,171.14
637,400.00
135,447.03
37,137.00
61,844.72
21,880.98
$1,219,880.87
New
Domestic
$
1,353.56
c • «•
1,334,935.17
736,314.00
391.45
368,556.69
$2,441,550.87
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER’S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended Oct. 24...........
Received previously. ........ ..
Total to October 24, 1934........
___ Gold Coin
$
51,404.91
29,225,727.59
$29,277,132.50
Received by Treasurer’s Office:
Weekended Oct. 24......... .
Received previously..............
Total to October 24, 1934........
$
3,800.00
___ 252,802.00
$ 256,602.00
G-old Certificates
$ 979,130.00
73,624,590.00
$74,603,720.00
$
26,200.00
1,786,900.00
$ 1,813,100.00
NOTE: Gold bars deposited with the New York Assay Office to
the. amount of $200,572.69 previously reported.
FOR RELEASE, MORNING- PAPERS,
Thursday, November 1, 1934,
treasury department
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts,
They will he
182-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will be received at the Eederal Reserve Banks, or the branches thereof,
up to two o*clock p. m,, Eastern Standard time, on Friday, November 2, 1934,
Tenders will not be received at the Treasury Department, Washington,
The Treasury bills will be dated November 7, 1934, and will mature on May
8, 1935, and on the maturity date the face amount will be payable without
interest.
They will be issued in bearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve Banks or branches
upon application therefor.
No tender for an amount less than $1,000 will he considered. Each tender
must he in multiples of $1,000.
The price offered must he expressed on the
basis of 100, with not more than three decimal places, e. g., 99,125. Fractions
must not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities. Tenders from others must be accompanied by a deposit of 10 per cent
of the face amount of Treasury bills applied for, unless the tenders are accom
panied by an express guaranty of payment by an incorporated bank or trust
company.
- 2 ~
Immediately after the closing hour for receipt of tenders on November 2,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning. The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount applied
for, and his action in any such respect shall be final. Those submitting tenders
will be advised of the acceptance or rejection thereof. Payment at the price
offered for Treasury bills allotted must be made at the Federal Reserve Banks
in cash or other immediately available funds on November 7, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes. No loss from the sale or other
disposition of the Treasury bills Shall be allowed as a deduction,or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended, 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
thereof•
TREASURY DEPARTMENT
Vfashington
November 5, 1934«
| MEMORANDUM FOR THE PRESS:
bMIPTS
OP SILVER BY THE MINTS:
’"'(uSaer Executive Order of December 21, 1933)
leek ended November 2, 1934:
547,884.67 fine ounces
277,403.35 "
|
San Francisco ............. ...........
1,054.00
1
1
n
Denver
.... .
Total for week ended Nov. .2, 1934 *«..«.«
826,342*02
Total receipts through Nov« 2, 1934 ...*.... 16,639,000.00
P h ila d e lp h i a
....................• • ............................ ............................ ... * #
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Order of August 9, 1934)
Week ended November 2, 1934:
56,194.00 fine ounces
.......
..................
7,046,708.00
York
New
........
48,945.00
San Francisco
................
.....
.4,323.00
Denver .......... ...........
..!!!!!.._____
322.00
New Orleans
... .
......
781.00
Seattle
........
7,157,273.00
Total for week ended Nov. 2, 1934
Total receipts through Nov. 2, 1934
... 105,22o,210.00
P h i la d e lp h ia
RECEIPTS OF COLD BY THE MINTS AND ASSAY OFFICES:
Imports
Week ended November 2, 1934:
Philadelphia .....
New York
•-»•
San Francisco ...
Denver. •....... »••
New Orleans .....
Seattle «.*,»,*.«...
Total for week ended Nov. 2-«
Secondary
$ 19,240.13
5,396,700.00
19,481.99
36,713.00
995.05
$5,473,130.17
284,322.33
584,000.00
166,699.54
37,576.00
42,442.06
15,704.32
$1,130,744.25
9
New
Domestic
809.55
317.300.00
877,341.91
513.270.00
112*60
204,653.45
$1,913,487.51
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER*S OFFICE.
(Under Secretary’s Order of December 28, 1933)
Cold C e r t i f i c a t e s
Cold Coin
Received by Federal Reserve Banks:
$ 840,720.00
50.,397.12
Week ended Oct. 31, 1934. ... • •>.• $
74,603,720.00
29,277,132.50
Received previously • • • • • • • • • • • • • •
$75,444,440.00
$29,327,529.62
Total to Oct. 31, 1934.
Received by Treasurers Office:
Week ended Oct. 31, 1934.
Received previously, ............• **
Total to Oct. 31, 1934 ...........
$
256,602.00
256,602.00
NOTE: Cold bars deposited writh the New York Assay Office
to the amount of $200,572.69 previously reported.
16,500.00
1,813,100.00
$ 1,829,600.00
EOR RELEASE, MORNING PAPERS,
Wednesday, Novernber 7, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTEAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts.
They will he
182-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will he received at the Eederal Reserve Banks, or the branches thereof,
up to two o*clock p. m.,, Eastern Standard time, on Eriday, November 9, 1934.
Tenders will not he received at the Treasury Department, Washington,
The Treasury hills will he dated November 14, .1934, and will mature on
May 15, 1935, and on the maturity date the face amount will he payable without
interest.' They will he issued in hearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and forwarded in the
special envelopes which will he supplied by the Federal Reserve Banks or branches
upon application therefor,
Uo tender for an amount less than $1,000 will he considered«.
must he in multiples of $1,000.'
Each tender
The price offered must he expressed on the
basis of 100, with not more than three decimal places, e. g.., 99.125. Tractions
must not he used.
Tenders will he accepted without cash deposit from incorporated hanks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must he accompanied by a deposit of 10 per
cent of the face amount of Treasury hills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated banx or trust
company.
Immediately after tlie closing hour for receipt of tenders on November 9,
1934, all tenders received at the Federal Reserve Banks or "branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final-
Those sub
mitting tenders will be advised of the acceptance or rejection thereof- Pay
ment at the price offered for Treasury bills allotted must be made at the
Federal Reserve Banks in cash or other immediately available funds on November
14, 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt,, from all
taxation, except estate and inheritance taxes-
No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended,- 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 thereof.'
TREASURY DEPARTMENT
Washington
fOrt
RFLSASD, UPON DELIVERY
■
1954. 2 : 15 P«M«( CENTRAL TIME)
Friday» November 9,
11 5 -3 4
-
Address of J. F. T. O’Connor, Comptroller of the Currency, "before the
Nebraska Bankers’ Association, Lincoln, Nebraska, November 9, 1934.
You will be interested in a review of the main problems confronting the
Office of the Comptroller of the Currency, which is a Bureau of the Treasury De
partment, after the banking holiday in March, 1933, and the solutions of these
problems.
Two of the problems were entirely new, and it was therefore necessary
to travel into unexplored territory without the guidance of experience or precedent
Tbe first problem was the reopening of 1,417 unlicensed national banks, with de
posits of $1,971,960,000, which are under the jurisdiction of the Comptroller of
the Currency♦
The second was the approval of the sale to the Reconstruction
Finance Corporation and to local interests of preferred stock in national banks.
The third problem was the distribution of dividends to depositors in closed banks.
The distribution of dividends has been an activity of the Comptroller s Office
since the first bank closed, but new methods have been employed during the past
twenty months.
The work accomplished could not have been done without the cooperation of
the Congress of the United States.
At the request of the President, ample pro
vision was made by Congress for reopening the closed institutions and giving muchneeded relief to depositors.
At the close of the hanking holiday, an entirely new division of the
Comptroller's Office was put together, and several floors of an adjoining office
building were taken over for this work.
Examiners were called in from different
parts of the country; clerks, auditors, stenographers, typists — all worked early
and late, under great pressure.
We received as many as 7,000 letters in one week,
J Each and every one of the 1,417 hanks had to he carefully examined, the assets
appraised, and a plan prepared for its reopening.
On November 1, 1934, 1075
banks had been reorganized, representing $1,792,899,000 in deposits, while 30
banks had voluntarily liquidated and paid their depositors in full $11,204,000,
and 297 hanks had been placed in receivership, representing $153,336,000 in de
posits.
The depositors in these particular receivership hanks have received
$42,328,657.
When a hank is placed in receivership, it does not mean that it
has no chance to he reopened or reorganized, as we had on November 1st approved
plans for reopening 10 of these receivership hanks with deposits of $4,754,000.
It is indeed a great pleasure to state to you today that there are only 15
banks in conservatorship, representing $14,433,000 of deposits, and of these, 13
have plans approved.for reorganization, with deposits of $13,653,000 which will
| be released shortly.. In other words, twenty months after the hanking holiday,
there remains undisposed of less than three-fourths of one per cent of the deposits
in the 1,417 unlicensed hanks as reported at the close of the hanking holiday.
A careful survey of the hanking situation of the nation showed that values
on property of all kinds have been greatly depressed, and our hanks contain
numerous items which debtors could readily have paid under ordinary conditions
but were not able to pay because of the financial collapse.
The President ap
preciated this situation and realized the importance of the hanking institutions
to the country.
To avoid further distress to depositors, he requested the
Congress of the United States to permit the government to purchase preferred stock
in these hanks-
Let me use his own words, »To accept the government’s offer to
purchase preferred stock does not mean that a hank is weak, hut that it is eager
to cooperate in the recovery effort to the fullest possible extent, and thus
9
undertake to put this additional capital to work.
capital.
We are not thinking of idle
We are thinking of working capital — capital working for recovery.»
-3it is Unnecessary to call your attention to the tremendous amount of detailed
work in connection with applications for"preferred stock — waivefS* consent of;
stockholders, resolutions of the Board of Directors and of the Reconstruction
Finance Corporation, as well as a careful check in the Comptroller’s Office and
approval "by the Secretary of the Treasury.
If you will keep in mind these various
complicated steps, you will have some idea of the task involved in the sale by
1,835 national banks of $473,353,550 in preferred stock to local interests and to
the Reconstruction Finance Corporation by November 1, 1934.
The third important problem referred to was the relief given to depositors
in closed banks.
Since March 16, 1933, there has been distributed through the
Office of the Comptroller of the Currency to depositors in closed national banks
over half a billion dollars, or to be exact $555,160,062.
In Nebraska at the end of the banking holiday, there were 21 national banks
unlicensed, with deposits of $6,503,000.
It will interest you to know that
every ©ne of these has been disposed of.
Fourteen were reopened, representing
deposits of $5,462,000; one bank with deposits of $99,000 has gone into voluntary
liquidation; and six banks, representing deposits of $942,000, have been placed
in receivership.
The combined deposits of these 14 reopened institutions and the one now being
voluntarily liquidated amounted to $6,128,000, or 85.5 per cent of all the de
posits tied up in unlicensed Nebraska national banks on March 16, 1933.
In most respects, recent bank '’calls" by the Comptroller of the Currency
have indicated that national banks in your state are making steady progress. The
one exception is the matter of l©ans an<^ discounts, which declined 6.8 per cent
during the first half of the current year.
However, with an increase of only 7 per cent in the number of licensed
Inational banks, investments of Nebraska national banks rose 31.8 per cent between
\
the end of 1933 and the middle of 1934; total deposits increased 30.9 per cent,
and total assets gained 26.7 per cent.
Results of the last three "calls" —* December 30, 1933, March 5, 1934, and
June 30, 1934 — for Nebraska national banks are given in the following tabulation:
Dec. 30
1933
No. of
National
Banks
128
Loans &
Discounts $ 62,416,000
Mar. 5
1934
June 30
1934
132
137
$ 60,848,000
$ 58,119,000
Invest
ments
71,439,000
91,441,000
94,174,000
Total
Assets
192,580,000
232,147,000
244,096,000
Total
Deposits
162,092,000
201,442,000
212,338,000
The remarkable record which has been made in rehabilitating the banking
structure of the Nation would have been impossible without Government assistance*
That this aid has been given in gigantic proportions, in the interests of the
people.of the United States, is indicated by the following figure«*
Through October 31, 1934, the Reconstruction Finance Corporation had author
ized loans to banks and trust companies — open or closed — in the sum of
$2,222,815,803*
Of this amount, $1,598,906,340 had actually been disbursed to
those institutions by that date.
Moreover, in an effort to rehabilitate the
capital structure and to make possible a greater extension of credit, the Re
construction Finance Corp'oration had authorized the expenditures of $1,128,794,295
through October 31, 1934, in l#ans on preferred stock of banxs and trust companies,
subscriptions for the preferred stock of such institutions, purchases of capital
notes and purchases of debentures.
Of this amount, $906,764,407 had then actually
been disbursed.
Without these huge disbursements by this Governmental agency, it is certain
that hundreds of banks which have been reopened since March of last year would
still "be closed, and. depositors would "be clamoring in vain for their func^-s,
The "banks of your state have not "been overlooked in this rebuilding movement.
Through October 31, 1934, the Reconstruction Finance Corporation had author
ized loans to Nebraska banks and trust companies — open or closed — in $h-ag
gregate of $5,926,349.
Of this amount, $5,586,551 had actually been disbursed
up to that time.
However, your Government did not stop there.
So as to rebuild the capital
structures of your banking institutions, the Reconstruction Finance Corporation
had authorized the expenditure of $8,675,000 in subscriptions to preterred stock
and loans on preferred stock of Nebraska banks — state or national — through
the close of business October 31 j 1934.
Of this total, $7,594,450 had them
actually been disbursed.
We hear a great deal of talk these days about the "heavy cost of receiver
ships," and there is considerable attempt to make the public believe that re
ceivers, their attorneys and assistants charge such large fees that nothing is
left for the poor depositor.
"but it has one drawback — it
The pidture commonly portrayed is a pitiful #ne,
isn’t
true.
Receiverships *u— at least national bank receiverships — are conducted with
a maximum of efficiency and a minimum of expense.
From the date of the first
failure of a national bank in l$6io to October 3l, 1933, national banxs placed in
receivership numbered
their affairs closed.
2,514 a
6f these, 1,155 have been entirely liquidated and
Expenses incident to the administration of these l,15o
closed trusts, such as receivers1 salaries, legal and other expenses
amounted
to 3.90 per cent of the book value cf the assets and stock assessments adminis
tered, or 6.65 per cent of collections from assets and stock assessments.
In 9 ther words, about 94 cents out of every dollar collected by receivers
\
went to depositors.
There are, today, 32 national banks in receivership in your state, including
6 placed in receivership since the banking holiday-of last year,.
At the time
suspensions, these institutions owed their depositors $10,383,543,
Today, de
positors in these 32 defunct hanks have.coming to them, according to the hooks,
$5,420,797.
In other words, depositors in closed national hanks in Nebraska have
received on the average 50 per cent of their funds, with more to come.
Much has been said about the opposition of the Administration to hankers
generally,
It is not necessary to point out the fact that this is not true. Fr-wn
time to time suggestions have been made as to how this or that particular group
in the Nation could assist in the recovery program, and these constructive sug
gestions can hardly he construed as an opposition policy.
Probably the most
generally circulated report is that the hankers cannot make loans because the
national hank examiners are tot critical and harsh in their examinations. This
problem has been a matter of serious concern to the Comptroller's Office.
It was?
the opinion of all fair-minded men that assets should not be appraised at a figure
which could be realized in a distressed market, but that assets had an intrinsic
value or, if you please, a recovery value.
It was agreed, therefore, to have
hank examiners appraise assets on this basis.
The Comptroller of the Currency
sent, on October 25, 1933', to each of the twelve Chief National Bank Examiners m
the United States instructions to this effect:
"After the 'Bank Holiday', National Bank Examiners were largely engaged m
the examination of hanks which did not receive a license for the purpose of re
organization.
It appears that some examiners in making examinations of licensed
national hanks have become what might he termed 'Reorganization Minded' and have .
lost sight of the President's recovery program and its relation to licensed hanks.
It is the Administration's desire that credit chamois he opened through licensed
tanks and this policy cannot he accomplished if examiners follow a deflation polic
in examinations.
We are all concerned in having sqlvent hanks, hut there is a
, wide distinction between the p.tential and intrinsic) value of assets of a going
' institution, and liquidating values.
Examiners in appraising and classifying
assets of licensed hanks will not apply liquidating values hut will appraise on
the "basis of fair values on a recovery "basis..
An an example - in dealing with
tank "buildings, the examiner must realize that a "bank "building of a going "bank
has an intrinsic value, as distinguished from present depressed values, which, com"bined with the element of recovery, may fully substantiate the carrying value
given to it by the bank.
The same is true of mortgages, and in this connection (
the examiners should familiarize themselves with the instructions given with re
spect to real estate mortgages by the Federal Deposit Insurance Corporation to its
examiners.
»You w i l l a d v is e e x a m in e r s who a r e e x a m in in g l i c e n s e d b a n k s o f t h i s p o l i c y
and see t h a t i t
i s c a r r ie d o u t.
A ny e x a m in a tio n now i n p r o c e s s , or a n y f u t u r e
e x a m in a tio n , w i l l be g o v e r n e d b y t h e s e i n s t r u c t i o n s a n d where a n e x a m in a tio n h a s
teen c o m p le te d , th e e x a m in e r m a k in g th e r e p o r t w i l l r e v ie w th e r e p o r t on th e abo ve
b asis an d r e w r it e s u c h r e p o r t i f fo u n d n e c e s s a r y .
I f th e e x a m in e r i s n o t now
a v a i l a b l e , i t may be n e c e s s a r y to make a new e x a m in a tio n on th e p r o p e r b a s i s . ”
Again on March 13, 1934, the following instruction was sent to all Chief
National Bank Examiners:
"Reports of examinations received by this office recently clearly indicate
that some few of the examiners throughout the country have not fully grasped the
meaning of instructions communicated to the Chief Examiners under date of October
26, 1933, and are making mr're drastic classific-ations of assets of the banks
examined by them than is necessary under the circumstances and more severe than is
contemplated by the instructions contained in office letter referred uo above,
"If there are in your Federal Reserve District any examiners who, in your
opinion, are making unnecessarily drastic classifications of assets, please confer
with them promptly, looking towards having their clarifications as lenient as
circumstances in each case will permit and in order flaat they will be in accord
^ with the policies of this office,"While you are familiar with the character of examinations made hy your
examiners, it is suggested that in determining whether or not any of them are too
8
-
-
severe in their classifications, you give particular attention to their appraisals
of hanking houses, furniture and fixtures and loans secured hy real estate.rl
No system is perfect "because men arc not perfect.
cases appear where examiners have "been too harsh.
Here and there isolated
These instances are sometimes
called to the attention of the proper officials; hut where examiners are too
lenient, that fact seldom appears.
never before been made public,
a criticism which is unfair,
The instructions which I have cited have
However, I believe the time has come to clarify
The question naturally arises ~ what were the
results obtained under the instructions?
Again, for the first time, I will give
you a complete picture of the examinations made by the national bank examiners as
shown by 1934 reports $f examination.
As is well known to bankers, examiners
classify loans under three headings, slow, doubtful and loss,
There is little
room for argument when assets are placed in the loss column and very little
question arises in the doubtful column.
tention and controversy.
The slow column attracts the most at
An examination of the reports filed in the Office of
the Comptroller of the Currency in each of 5,275 banks reveals the following in
teresting figures: The total amount of loans was $7,740,596,000.
The examiners
placed 2.88 per cent of these loans in the loss column and 4.19 per cent in the
doubtful column and 27.05 per cent in the slow column.
The country has been ad
vised of the definition of slow paper as follows:
"The examiners when classifying loans as slow should state briefly the
reasons for such classifications, but should bear in mind that the responsibility
for determining and taking such action as may be necessary to place such slow
loans in proper bankable shape rests entire^ with the bankers,
The examiners,
therefore, should refrain from instructing the bankers as to what course they
should pursue with their customers whose psyper is classified as slow,"
This conclusively proves the understanding and sympathetic attitude on the
part ff your government toward the banks of the country,
TREASURY DEPARTMENT
Washington
Press Service
FOR ILLfSBÏ-ATS RELEASE
Uovember■12, 1934
, which
Secretary Morgenthau today made public the following regulations
f
today
(Nov.13,1934)
have been approved by the President and are effective as c
TREASURY DEPARTMENT,
Office of the Secretary,
November 12, 1934.
REGULATIONS
Relating to Transactions in Fereign Exchange,
Transfers ®f Credit, and tne Export of
C«in and Currency
Article 1. .These regulations are prescribed and issued.under authority
of Section 5 (b) of the Act of-October 6, 1917, (40 Stat. L., 41l). as amended
iy Section 2 of the Act of March 9, 1933, and the Executive Order of January
15, 1934, Regulating Transactions in Eoreigi Exchange, Transfers of Credit,
and the Export of Coin and Currency.
Article 2.. Licenses may be granted, and a general license is hereby
granted, to all individuals, partnerships, associations, and Corporations,
authorizing any and all transactions in foreign exchange, transfers of.credit
and exports of currency (other than gold certificates) and silver coin. The
general license herein granted authorizes transactions to he carried out
which are permitted hy the-Executive Order of January 15, 1934 under license
therefor issued pursuant to such Executive Order; hut does not authorize
any transaction to he carried out which, at the time, is prohibited hy any
other order or.hy any law, ruling, or regulation.
Article 3. In order that Federal reserve banks may keep themselves
currently informed as to foreign exchange transactions and transfers sf
- 2 -
credit, as required in Section 4 of the Executive Order of January 15, 1934,
every person engaging in any transaction,, transfer, export, or withdrawal
referred to in Section 1 of such Executive Order shall furnish to the Federal
Reserve Dank of the district in which such person has his principal place of
■business in the United States complete information relative thereto upon re
port forms prescribed hy the Secretary of the Treasury, except that reports
are not required to be furnished by (l) persons not carrying during any
part c.f the reporting period, accounts abroad or accounts in the United
States for non-residents thereof, or (2) persons whose aggregate trans
actions,- transfers, exports, or withdrawals for their *wn account and the
account of cithers do not exceed $5,000 during any seven-day period. Such
information shall be furnished on a weekly basis except as the respective
Federal Reserve banks permit the information in certain cases t>r classes
of cases to be furnished on the basis of longer intervals.
These regulations and the general license herein granted may be modi
fied or revoked at any time#
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury.
APPROVED:
FRANKLIN D.- ROOSEVELT,
The White Houses
TREASURY DEPARTLiSNT
Washington
November 12, 1934«
U RANIUM FOR THE PRESS:
ggilPTS OR SILVER 3Y THE MIRTS.
^|Sder Executive Order of December 21, 1933)
feeltended November 9, 1934: ;
Philadelphia................ . •
San Francisco...... *•*»......
Denver..............
Total for week ended Nov. 9, 1934
Total receipts through Rov. 9, 1934,.
350,899.61 fine ounces
633.44 H "
7,895.00 " 31
359,428.05
16,998,000.00
NLV3R TRANSFERRED TO UNITED STAIRS:
(Under Executive Order of August 9, 1934)
leek ended November 9, 1934:
■K
%lEia
................
P h i l a d e l p h i a . . . . . . . . . . ..............
San Francisco........ ......... .
Denver...... ........... .
^
•H B
99,297.00
fine
ounces
’ 7 7 no
«
„
20,121.00
„
„
Total for week ended Rov. 9, 1934..•• 3,665,2^9.00
Total receipts through Rov. 9, 1934.... 108,891,449.00
B5C3IPTS 6F
GOLD
BY THE KIRIS ARP ASSAY OFFICES:
New
Domestic
Secondary
Imports
leek ended November 9, 1934:
$ 294,008.06
$
592.51
Philadelphia............. .
$
~
963-,100.00
38,600.00
Yew York... ...............
5,528,100.00
105,311.291,452,925.85
.......
56,317.02
San Francisco............. . •
52.302.00
870,396.00
43,099.00
Denver
............ . *
73,677.79
473.45
61,624.82
Yew Orleans..... .... .
41.603.01
265,582.07
Seattle........ ......... .
--- ---------_-k
ended
Nov.9,1934.
$5,689,440.84
$1,530,002.15 $*,,628,569.88
Total for week
GOLD KEC3ITOD 3Y FEDERAL BESBHVE 3AIUCS AIID 153 TBEASUK3B1S OFFICE
(Under Secretary's Order of December 28, 1933)
Gold Certificates
___ Gold Coin
Received by Federal Reserve Banks:
5 480,610.00
$
31,915.26
Week ended November 7
.
•
75,444,440.00
29,327,529.62
Received previously.
... . •
$75,925,050.00
$29,359,444.88
Total to November 7.....
Received by Treasurer's Office:
leek ended November 7............•
Received p r e v i o u s l y ... . ♦
Total to November 7..........
$
$
256,602.00
256,602.00
ip;* Gold bars deposited with the New Yjrk Assay Office
to the amount of $200,572.69 previously reported.
7,600.00
1,829,600.00
$”1,837,200.00
EOR RELEASE, MORNING- PAPERS
Friday, November 16, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited
for Treasury hills to the amouht of $75,000,000, or thereabouts. They will
be 182~day hills; and will he sofLd on a discount basis to the highest bidders.
Tenders will he received at the Federal Reserve Banks, or the branches thereof
up to two o'clock p.m., Eastern Standard time, on Monday, November 19, 1934.
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated November 21, 1934, and will mature
on May 22, 1935, and on the maturity date the face amount will be payable
without interest. T^ey will be issued in bearer form only, and in amounts
or denominationsIof $1,000, $10,000, $100,000, $500,00r», and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be suprlied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples of $1,000« The price offered must be#expressed
on the basis of 100, with not more than three decimal places, e.g. 99.125*
Fractions'must not be used.,
Tenders will be accepted without cash deposit from incorporated
banks and trust companies and from responsible and recognized dealers in
investment securities. Tenders from others must be accompanied by a deposit
of 10 per cent of the face amount of Treasury bills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on
November 19, 1934, all tenders received at the Federal Reserve Banks or
"branches thereof up to the closing hour will le opened and public announce
ment of the acceptable prices will follow as soon as possible thereafter,
probably on the following morning. The Secretary of the Treasury expressly
reserves the right to reject any or all tenders or parts of tenders, and to
allot less than the amount applied for, and his action in any such respect
shall be final# Those submitting tenders will be advised of the acceptance
or rejection thereof. Payment at the price offered for Treasury bills al
lotted must'.fee made at the Federal Reserve Banks in cash or other immediately
available funds on November 21, 1934.
The Treasury bills will be exempt, as to principal and interest, and
any gain from the sale or other disposition thereof will also be exempt,
from all taxation, except estate and inheritance taxes. No loss from the
sale or other disposition of the Treasury bills shall be allowed as a
deduction, or otherwise recognized, for the purposes of any tax now or
hereafter imposed by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, 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 thereof
TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING- NEWSPAPERS
Monday, November 19, 1934 .
Eress Service
11- 10- 34.
J. P. T. O’Connor, Comptroller of the Currency, has issued a summary re
flecting the status of all national hanks in the State of Michigan which failed
to reopen at the termination of the hanking holiday, March 15, 1933.
There
were fifty—three (53) hanks involving frozen deposits of ip5Sl,520,000 which
failed to receive licenses following the holiday and one hank with frozen de
posits of $7,911,000 had its license revoked, bringing the total unlicensed
national hanks to fifty-four (54) with frozen deposits of $569,431,000.
3y October 11, 1934, all of the unlicensed national hanks had been disposed
of as follows: ten (10) with frozen deposits of $8,604,000 were reopened under
old charters; thirty—four (34) with frozen deposits of $557,723,000 were opened
under newr charters or absorbed by going hanks, and ten (10) with deposits of
$3,104,000 were declared insolvent and placed in charge of Receivers.
The following is a list of those unlicensed national hanks which have been
reorganized along thè lines stated above, showing the percentage of the un
secured deposits released when reorganization was effected as well as the per
centage released subsequently by Receivers in cases where a portion of the onsets
of the old banks we.s placed in active liquidation.
released 100$ in all cases of reorganization.
Secured deposits were
-
C I T Y _______ ILAlvLS OH BANK
2
~
BROZEU
DEPOSITS
THYQLVHP
$ UNSECURED
DIVIDENDS
DATE OH DEPOSITS PAID SUBSEQUENT*
REORGAN- THROUGH REOR- LY PAID BY
IZATION GANIZATION
RECEIVERS
40%
647,000 H/l/33
Hat1! 3k.of Commerce $
Old Merchants IT. 3.
65$
7,911,000 6/9/34
& Tr. Co.
! Benton H a rb o r Harmers & Merchants
50$
2,461,000 11/14/33
N. B. & Tr. Co.
20$
2,301,000 6/15/33
Hirst IT. B.
Birmingham
50$
299,000 4/12/34
Caspian IT. B.
I Caspian
50$
569,000 4/21/34
Coldwater IT. B.
| Coldwater
50$
9/24/34
452,000
Crystal Halls IT. 3.
| C ry sta l H a l l s
50$
9/24/34
738,000
Iron County IT. B.
j C ry sta l H a l l s
40$
4/8/33
373,360,000
Hirst IT. B.
l D etro it
Guardian IT.B. of
I D e tro it
40$
108,103,000 4/8/33
Commerce
40$
2/8/34
411,000
Eaton Rapids Birst IT. B.
100
$
4/6/33
227,000
Birst l'T. 3.
Evart
50$
1/30/34
6,367,000
Birst IT.3. & Tr. Co.
Flint
70$
347,000 4/19/34
Birst IT. B.
Cladstone
50$
8/23/33
11,080,000
Grand Rapids Grand Rapids 1T.B.
70$
9/1/33
952,000
Superior IT. B.
Hancock
60$
12/2/33
798,000
Hastings IT. B.
Hastings
100
$
3/17/53
468,000
IHermansville Birst IT. B.
15$
3/12/34
760,000
Birst LT. B.
I Hillsdale
50$
405,000 5/12/34
Birst IT. B.
[ Howell
70$
11/6/33
583,000
Birst IT. B.
I Hubhell
45$
6/12/34
1,135,000
Hat1! Bank of
Ionia
60$
1,856,000 9/H/33
I Iron Mountain Birst IT. B.
50$
4/12/34
846,000
Birst IT. B.
! Iron River
60$
2,067,000 1/6/34
Miners H. B.
l| Ishpeming
35$
7,450,000 7/31/33
Union & Peoples IT.B.
i"Jackson
60$
10/23/33
556,000
Birst IT. B.
I Lake Linden
40$
12,552,000 2/26/34
Capital IT. B. of
I Lansing
100
$
73,000 5/12/33
Birst IT. B.
I Lawton
35$
898,000 2/19/34
Birst IT. B. & Tr. Co.
1 Ludington
315,000 IO/H/34 60$
Birst IT. B. in
I Manistique
50$
847,000 2/17/34
Birst H. B.
Marshall
2,277,000 11/18/33 50$
Birst IT. B.
Monroe
55$
1,221,000 8/18/33
The City IT.B. & Tr.Co .
; Riles
64$
1/27/34
1,057,000
Birst IT. B.
Norway
50$
1/6/34
271,000
Birst IT. B.
S Ontonagon
40$
6,154,000 7/18/33
Birst IT. B. at
Pontiac
60$
10/4/33
766,000
Birst IT. B.
Richmond
25$
H/27/33
1,474,000
Birst IT. B.
Rochester
55$
601,000 10/7/33
Birst IT. B.
St. Ignace
50$
2/23/34
648,000
Birst IT. B.
Utica
80$
6/7/33
537,000
Birst IT. B.
Wakefield
30$
12/14/33
667,000
Birst IT. 3.
Wyandotte
30$
10/17/33
2,320,000
Birst IT. B*
II Ypsilanti
Adrian
B attle C r e e k
TOTALS
44 Banks
$566,327,000
5$
10$
28$
10$
- 3The following is a list of the "unlicensed national "banks in the
State of Michigan which have been declared insolvent and placed in
the hands of Receivers, showing the percentage of "unsecured deposits
subsequently released:
CITY
NAME OP BAM
Almont
Avoca
¡Brighton
Bronson
kart
partford
Manistee
Millington
Paw Paw
Borneo
Pirst IT.,B. .
$
First 11.,B..
Pirst IT..B•.
Peoples 11.,B. .
Pirst 11. B.
Olney N. B.
Pirst 11. B. .
Millington 11. .B. .
First N.-.B..
Citizens U. .B. .
TOTAL
DEPOSITS
165,000
227,000
138,000
238,000
337,000
368,000
554,000
81,000
478,000
518,000
TOTALS — 10 Banks--- $ 3,104,000
9
DATS OF
RECEIVER* S
APPOINT
MENT
10/9/33
10/24/33
10/9/33
5/9/34
9/14/33
9/26/33
12/12/33
10/25/33
12/28/33
10/12/33
DIVIDENDS
SUBSEQUENTLY
PAID BY '
RECEIVERS
45$
24j o
80$
—
40$
28l
/o
—
25$
50$
32$
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS
November IS, 1934,
RECEIPTS QE SILVER El TEE MINTS:
(Under Executive Proclamation of December 21, 1933)
Week ended November 16, 1934:
Philadelphia .........................
San Francisco.............. ..........
Denver................................
Total for week ended Nov. 16.....
Total receipts throughNov. 16, 1934.....
206,621.78 fine ounces
809,229.73 ”
10,103.00 "
'*
1,025,954.51 ”
H
18,024,000.00 11
n
SHYER TRANSFERRED TO UNITED STATES:
(Under Executive Pro cTarnation of August 9, 1934)
leek ended November 16, 1934:
Philadelphia ...............
New York ,,,,,,,,, ,,.T..TT ,
San "Francisco,
Denver,
New Or! ean s
Seattie.................... .
Total for week ended Nov. 16,.......
Total receipts through Nov. 16, 1934.....
21,690.00 fine OU]
II
106,911.00 11
I
I
I
I
2,269.00
I
I
I
I
205,022.00
I
I
1
1
299.00
m
^
II
336,191.00 II
II
f
l
109,227,640.00
RECEIPTS OP GOLD BY THE MINTS AND ASSAY OFEICES:
Imports
leek ended November 16, 1934:
.......
$
22,582.28
Philadelphia .......
.......
23,623,300.00
New York... ........
.......
*187*587.63
San Erancisco.......
.......
33^804.00
Denver
New Orleans,,,,,,,,,
Seattle.
Total for week ended No v. 16, 1934,.. $23,867,273.91
Secondary
$ 253,249.41
1,038,500.00
99*333.96
30,883.00
34,358.24
$1,456,324.61
New
Domestic
$
805.42
49,700.00
970,983.91
849,704.00
797.66
775,973.74
$2,647,964.73
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OPE ICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week ended Nov. 14
Received previously
Total to November 14,1934
Received by Treasurer’s Office:
Week ended Nov. 14
Received previously
Total to November 14,1934.
£ NOTE:
Geld Coin
$
29,044.92
29.359,444.88
$29,388,489.80
Gold Certificates
$
632,750.00
75.925.050.00
$76,557,800.00
$
$
$
700.00
256,602.00
257,302.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572.69 previously reported.
23,600.00
1.837.200.00
$ 1,860,800.00
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS
November 20, 1934.
INDEBTEDNESS OP FOREIGN GOVERNMENTS TO THE UNITED STATES
Amounts payable December 15, 1934
(Exclusive of amounts previously due and unpaid.)
•
m
Country
¡Under Original Funding Agree- : Under
•
«
ments ¡Moratorium
•
•
Interest. ..__«Agreements--- •
;Principal
:
$ 2,625,000.00 $
Belgium
Czechoslovakia
$ 1,500,000.00
484,453.88
Total .
$
3,109,453.88
182,812.78
1,682,812.78
Estonia
208,500.00
286,265.00
36,585.29
531,350.29
Finland
62,000.00
1.47,507.50
19,030.50
228,538.00
19,261,432.50 .3,046,879.72
22,308,312.22
France
Great Britain
Hungary
—
■
32,000,000.00
75,950,000.00
9,720,765.05
117,670,765.05
12,800.00
33,185.07
4,225.58
50,210.65
1,245,437.50
896,155.88
2,141,593.38
119,609.00
15,274.26
220,683.26
107,783.67
13,683.26
121,466.93
3,582,810.00
456,229.71
6,616,039.71
48,750.08
48,750.08
Italy
jLatvia
Iiithuania
Poland
Rumania
85,800.00
—
2,577,000.00
—
—
MM
Yugoslavia
'TOTAL
$36,446,100.00$103.359,030.24$14.924.845.99
$154,729,976.23
EOR RELEASE, MORNING PAPERS
Friday, November 23, 1934*
TREASURY DEPARTMENT
STATEMENT BY ACTING SECRETARY OE THE TREASURY COOLIDGE
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts.
They will be
182-day bills; and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Eederal Reserve Banks, or the branches thereof,
up to two o ’clock p.m., Eastern Standard time, on Monday, November 26, 1934.
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated November 28, 1934, and will mature on May
29, 1935, and on the maturity date the face amount will be payable without
interest.
They will be issued in bearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Eederal Reserve Banks or
branches upon application therefor*
No tender for an amount less than $1,000 will be considered.
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e.g., 99.125.
Fractions
must not be used.
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tendero aie
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour for receipt of tenders on Hovcmher 26,
1934, all tenders received at the Federal Reserve Banks or "branches thereof up
to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning*
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or partsof tenders, and to allot less than the amount applied
for, and his action in any such respect shall "be final*
Tnose.submitting
tenders will "be advised of the acceptance or rejection thereof#
Payment at
the price offered for Treasury "bills allotted must "bo made at the Federal Reserve
Banks in cash or other immediately available funds on November 28, 1934#
The Treasury "bills will "be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also "be exempt, from all
taxation, except estate and inheritance taxes*
No loss from the sale or other
disposition of the Treasury "bills shall "be allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed "by the United
States or any of its possessions#
Treasury Department Circular No* 418, as amended, and this notice prescribe
the terms of the Treasury bills and govern the conditions of their issue*
Copies
of this circular may be obtained from any Federal Reserve Bank or branch thereof#
TREASURY DEPARTMENT
Washington
November 26, 1934*
MEMORANDUM FOR THE PRESS
RECEIPTS OP SILVER BY THE MINTS;
(Under Executive Proclamation of December 21, 1933)
Week ended November 23,1934:
Philadelphia •..»•**..*...••*.... .
San Francisco...... ........*...... *
Denver .................... ........
Total for week ended Nov* 23.....**
Total receipts through Nov* 23,1934....»
148,252*25 fine ounces
293,469*20
11 *
l-81Q*00
"
n
443,531*45
11
H
18,468,000.00
n
11
S ilver t r ansferred to un i t e d stated :
(Under Executive Proclamation of August 9, 1934)
Week ended November 23, 1934:
Philadelphia •...... ...............
New York ................. ........ .
San Francisco* ................. .
Denver..... **......................
New Orleans; ....... . *..............
Seattle............................ .
Total for week ended Nov. 23......
Total receipts through Nov. 23, 1934*...
7,335.00 fine ounce1
it
252.,027.00 tt
it
tt
n
h
2,100.00
tt
t
i
408.00
it
tt
_}_
ti
n
261,870.00
it
t
i
109,489,510.00
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
New
Secondary
Domestic
Week' ended November 23, 1934:
____ Imports .
$ 365,223*48$
764.40
-----Philadelphia ...... .............. $
1,500,000.00
----New York ..•••••.••••.**.**....*.•• 33,420,000*00
104,459.05 1,399,427.88
San Francisco.................
452,096*23
35,544.00
71,689.00
Denver .........
33,737.00
45,180.88
746.83
New O r l e a n s ...............................................................
1 6 ,4 8 0 *3 3
39,881.56
167,305.72
Seattle.
~**~* ——
Total for week ended Nov. 23, 1934 ... $33,922,313*56 $1,590,288.97$1,639,933.83
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary's Order of December 28, 1933)
Received by Federal Reserve Banks:
_____ Gold Coin
Week ended Nov. 21................ .
$
63,733.00
Received previously............... ... *
29,388,489.80
Total to November 21, 1934..... .
$29,452,222.80
Received by Treasurer's Office;
Week ended Nov. 2 1 .... ........ ......
$
------ *
Received previously. ...............
•_______257*302*00
Total to November 21, 1934............. $
257,302*00
NOTE: Gold bars deposited with the New York Assay Office
to the amount of $200,572*69 previously reported*
Gold Certificates
$
753,970.00
76,557,800.00
$77,311,770.00
$
20,700.00
1.860,800.00
$ 1,881,500.00
TREASURY DEPARTMENT
Washington
MEMORANDUM FOR THE PRESS:
November 30, 1934.
The following telegram has been sent to all acting supervisors of tne
Alcohol Tax Unit of the Bureau of Internal Revenue:
November 30, 1934.
9
Acting District Supervisor:
I
ALL INSTRUCTIONS ADVISING- YOU TBAT CERTAIN NAMED EMPLOYEES OE THE ALCOHOL
TAX UNIT HAVE BEEN DROPPED PROM THE ROLLS EFFECTIVE AT THE CLOSE OP BUSINESS
NOVEMBER THIRTY AND REQUESTING YOU TO GIVE THEM NOTICE ACCORDINGLY ARE..
RESCINDED STOP YOU ARE DIRECTED IMMEDIATELY TO ADVISE ALL EMPLOYEES AFFECTED
BY THE SO-CALLED MCKELLAR PROVISION THAT THEIR NAMES WILL NOT BE DROPPED
PROM THE ROLLS OF THE ALCOHOL TAX UNIT AND THAT THEY MAY ELECT xO REMAIN
IN ACTIVE DUTY STATUS STOP ANY SUCH EMPLOYEES ELECTING TO REMAIN IN ACiIVE
DUTY^ATUS HOWEVER SHOULD BE ADVISED THAT THE DEPARTMENT IS WITHOUl FUNDS
TO PAY THEIR COMPENSATION FOR SERVICES RENDERED FROM AMD AFTER DECEMBER ONE
AND THAT THE PAYMENT OP COMPENSATION FOR SERVICES RENDERED PROM AND JL ieR
THAT DATE WILL BE DEPENDENT UPON SUCH ACTION AS MAY.BE TAKEN 3Y CONGRESS
STOP IT SHOULD BE MADE CLEAR. TO ALL EMPLOYEES AFFECTED BY TIffi,MCKELLAR
PROVISION THAT THEY ARE AT LIBERTY TO APPLY FOR LEAVE WITHOUT PAY FROMAND
AFTER DECEMBER ONE IP UNDER THE CONDITIONS STATED THEY DO NOT DESIRE TO
REMAIN IN ACTIVE DUTY STATUS STOP AC3UI0WLEDGE RECEIPT BY WIRE
Approved: By direction of the Secretary,
(Signed) W. H. McReynoids.
Guy T. Helvering,
Commissioner.
Administrative Assistant to .the Secretary.
POR RELEASE, MORNING PAPERS,
Friday, November 50, 1934.
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invitee for
Treasury hills to the amount of $75,000,000, or thereabouts.
They will he
182-day hills; and will he sold on a discount basis to the uighest bidder.,.
Tenders will he received at the Federal Reserve Banks, or the branches thereof,
up to two o'clock p.m., Eastern Standard time, on Monday, December 3, 1934.
Tenders will not be received at the Treasury Department, Washington.
The Treasury hills will he dated December 5, 1934, and „ill mature on Ju.
5 , 1935, and on the maturity date the face amount will he payable without
interest.
They will he issued in hearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and forwarded in
the special envelopes which will he supplied by the Federal Reserve Banks or
■branches upon application therefor*
No tender for an amount less than $1,000 will be considered#
must be in multiples of $1,000.
Each vender
Tho price offered must be expressed on the
basis of 100, with not more than three decimal places, e.g., 99.125*
Fractions
must not bo used*
Tenders will be accepted without cash deposit from incorporated bc.nks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must he accompanied by a deposit of 10 per
| cent of the face amount of Treasury hills applied for, unless the tenders are
I accompanied by an express guaranty of payment by an incorporated hank or trust
company*
Immediately after the closing nour for receipt of tenders on December 3,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
— 3—
morning.
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot loss than the amount
applied for, and his action in any such respect shall he final.
Those submitting
tenders will he advised of the acceptance or rejection thereof.
Payment at
the price offered for Treasury hills allotted must he made at tne federal
Reserve Banks in cash or other immediately available funds on December 5, 1934.
The Treasury hills will he exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also he exempt, from all
taxation, except estate and inheritance taxes.
Ho loss from the sale or other
disposition of the Treasury hills shall ho allowed as a deduction, or otherwise
recognized, for the purposes of .any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this notice prescribe
the terms of the Treasury hills and govern the conditions of their issue.
Copies of this circular may he obtained from any Federal Reserve Bank or branch
thereof
TREASURY DEPARTMENT
Washington
MEMORANDA EOR THE PRESS
November 30, 1934«
Following is text of opinion of the Attorney General received hy the
Secretary of the Treasury today:
"November 30, 1934*
The Honorable,
The Secretary of the Treasury»
Sir:
I have the honor to refer to the letter of Acting Secretary of the
Treasury Oliphant, dated November 28, 1934, wherein my opinion is requested
upon certain questions arising in connection with the Treasury Department s
administration of the so-called McKellar proviso, contained in the Emergency
Appropriation Act, fiscal year 1935 (ch* 648, 48 Stat* 1061), undei the
heading ‘'Bureau of Internal Revenue'-•
The questions submitted for my consideration by the Acting Secretary
are as follows:
1.
Does the McKellar Proviso require the Secretary of the
Treasury to remove the filass of employees included within
its scope from the service, either by outright separation
or by a partial dismissal in the form of a furlougn?
2*
If your answer to the first question is in the negative,
is the Secretary of the Treasury authorized by law to^
continue the employees in question in a duty status without
pay?
The McKellar Proviso is in these words:
'Provided, That after December 1, 1934, no part of the^
appropriation made herein or heretofore made for the iiscal
year 1935 shall be used to pay the salary of any person
formerly employed as investigator, special agent, senior
warehouseman, deputy prohibition administrator, agent,
assistant attorney, assistant prohibition administrator,
senior investigator, deputy production administrator,
storekeeper or gauger,or any other position in the
Prohibition Bureau or Alcoholic Beverage Unit, Department
of Justice, who was separated from the service of such
Bureau or Unit between June 10, 1933, and December 31,
1933, while in any such position in the Treasury
Department, unless and until such person shall be
appointed thereto as a result of an open, competitive
examination to be hereafter held by tne Civil Service
Commission,'
.*”* * *
n-r rpmti re removal from the
"This proviso does not in express -oims
j it, in ny opinion,
service of the employees included within its scope. H o r a o ^ i t , ^
do so hy implication. B »
salaries appertaining thereto ^ r e created
theretofore enacted "by the Congress«
estsblishedVder general statutes
The proviso does not
its language clearly indicates teat the Oort
of t b e appropriation made
It nrovides only that after December 1, 19 ,
ig3c ^hail be used to
under the Act or theretofore md»- for the fiscalj
and -until
pay the salary of any employee falling w
r,osition occupied by him as a
such employee shall have been appointee to the posit
P
civil
result of an open competitive examination thereafter to be neie y
Service Commission*
In view of the foregoing, and since
had hcen appointed to their positions m the T r a : M f
statutory authority at the time of the
that the proviso does not change or
Treasury Department, except with respect t . - P y®
t S v p S L S t to
it is clear
f s e^loyees in the
as
• •
i n + r ^ 5 rrrovfsft does not require the
Since this is so, it is my opinion t
^
the service,' either
Secretary of the Treasury to remove t ^ e o ^ l o y o e s ;r
^
r furlough.
by outright separation or by a ^ ^ ^ “ ooroliry," it is my further opinion
For the same reasons and ^ ;a nee£ • « * « £
status without pay.
that they may he continued m Oie service m a u. jr
, a ,-i a «4--no. ci^f'TPtnrv are answered accordingly,
The questions submitted hy the Acting ^
7
e.eCon<3
the
the first question being answered in the negative and t
•>
affirmative«
Respectfully,
(Signed)
Homer Cummings
Attorney General•"
TREASURY DEPARTMENT
Washington
December 3, 1934.
MEMORANDUM EOR THE PRESS:
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Proclamation of December 21, 1933)
Week ended November 30, 1934:
San Francisco........ -»«•••••
Denver...........* •
Total for week ended Nov. 30, 1934..
Total receipts through November 30, 1934,.
350,144.96 fine ounces
9.151.00
11 "
359,295»96
"
H
18,827,000.00
"
"
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Proclamation of August 9, 1934)
Week ended November 30, 1934:
Philadelphia.
.... ............. .. •*
New York ..................
Denver. ...... ..................... .
New Orleans....... ................ . •••
Seattle. ..... ..................... ••
Total for week ended Nov. 30, 1934...
Total receipts through November 30, 1934...
14.467.00 fine ounces
59.301.00 n
"
5,945.00
n
"
271.00
n
u
________678.00 w
“
80.652.00 M
"
109,570,000.00
"
*
RECEIPTS OP C-OLD BY TEE MINTS AND ASSAY OFFICES:
1 „— --------Week ended November 30, 1934:
Philadelphia
New York
San Prancisco ............ .
Denver................ .
New Orleans..... ..............
Seattle.
Total for week ended Nov. 30, 1934,
Imports
--$
46,525,000.00
12,075.28
70,273.00
$46,607,347.28
New
Domestic
Secondary
$ 204,930.92 $
259.2.1
150,100.00
651,400.00
959,591.15
141,016.55
717,563.00
54,858.00
66.54
29,373.86
84.375.24
13.855.52
$1,095,434.85 Îpi,911,955.14
GOLD RECEIVED BY PEDERAL RESERVE BANKS ANO TH3_.TREASURER1S OP?ICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Week enciod Nov. 28
Received previously
Total to Nov. 28, 1934............
Received by Treasurer’s Office:
Week ended Nov. 28 ....... .
Received previously..............
Total to November 28, 1934.......
Note:
Gold Coin
$
35,358*04
29.452.222.80
$29,487,580.84
Gold Certificates
700,010.00
77.311.770,00
$73,011,780.00
(j>
$
$
257.302.00
257,302.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572.69 previously reported.
$
10,700.00
1.881.500.00
$ 1 ,892,200.o 00
DOR RELEASE, MORNING PAPERS,
Eriday, December 7, 1934*
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury Bills to the amount of $75,000,000, or thereabouts.
They will he
182-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will he received at the Eederal Reserve Banks, or the branches thereof,
up to two o ’clock p.in*, Eastern Standard time, on Monday, December 10, 1934.
Tenders will not he received at the Treasury Department, Washington.
The.Treasury hills will he dated December 12, 1934, and will mature on June
12, 1935, and on the maturity date the face amount will he payable without
interest.
They will he issued in hearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and forwarded in
the special envelopes which will be supplied by the Eederal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will he considered.
must he in multiples of $1,000.
Each tender
The price offered must ho expressed on the
basis of 100, with not more than three decimal places, e.g., 99.135.
fractions
must not he used.
Tenders will he accepted without cash deposit from incorporated hanks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others mast he accompanied by a deposit of 10 per
cent of the face amount of Treasury hills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated hank or trust
company.
Immediately after the closing hour for receipt of tenders on December 10,
1934, all tenders received at the federal Reserve Banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
^
any or all tenders or parts of tenders, and to allot less than the amount applied
for, and his action in any such respect shall he final.
Those submitting
tenders will he advised of the acceptance or rejection thereof.
Payment at
the price offered for Treasury hills allotted must he made at the Federal
Reserve Banks in cash or other immediately available funds on December 12, 1934*
The Treasury hills
M & l
be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof 'will also he exempt,' from all
taxation, except estate and inheritance taxes.
No loss from the sale or other
disposition of the Treasury hills shall he allowed as a deduction, or otherwise
recognized^ for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice prescribe
the terms of the Treasury hills and govern the conditions of their issue*
Copies of this circular may be obtained from any Federal Reserve Bank or branch
thereof:
TREASURY DEPARTMENT
Washington
MEMORANDUM EOR THE PRESS.
December 10, 1934.
RECEIPTS OF SILVER BY THE MINTS:
(Under Executive Proclamation of December 21, 1933)
Week ended December 7, 1934:
Philadelphia
San Prancisco ••.•••••.......... ..........*
Denver
.............
Total for week ended Dec*
7, 1934**.****
Total receipts through December 7, 1934*.**•
149,945*05 fine ounces
223,667*14 11
114,081*00 *'
,f
487,693*19 H
19,315,000*00 M
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Proclamation of August 9, 1934)
Week ended December 7, 1934:
Philadelphia
New York
San Prancisco .......................
D e n v e r .... .... ................... .
New Orleans...... ........ ?.............. •
S
e
a
t
t
l
e
.
•
Total
for
week
ended
Dec*
7,
1934*.....*
----- -- —
w
* w vwv- --Total receipts through December 7, 1934*..••
4,881
211,088
73,966
1,154
402
,.:
__^67
292,358O
V- V_ ._
• _ ___ _________
109,862,532
fine ounces
n
11
11
”
11
I
Ht
1
ll
RECEIPTS OP GOLD BY THE MINTS AND ASSAY OFFICES:
Week ended December 7, 1934:
Imports
Philadelphia......... \ *........ • $
--New York.....;
**... w ...••••.•••• • 29,900,000*00
San Francisco*........ .....
260,889*63
Denver•,».#•»«•••.••»••»•••»»«»*
7,398*^0
New O r l e a n s . •
2,173*26
Total for week ended Deci 7j 1934* $30,170,460*89
Secondary
398,319*02
755,500.00
124,716.24
19,146*00
44,722*91
33,441*76
$1,375,845.93
$
$
New
Domestic
327..00
37 ,200.00
1,079,542.60
796,632.00
728.01
317.612*03
$2,232,041.64
GOLD RECEIVED BY FEDERAL RESERVE RANKS AND THE TREASURER'S OFFICE:
(Under Secretary's Order of December 28, 1933)
Received by Federal Reserve Banks:
Week enued Dec* 5*•*••••••••••••••
Received previously*.•••.*.••...••
Total to Dec* 5, 1934*..... .
Received by Treasurer's Office:
Week ended Dec*. 5.............. .
Received previously*.•••••••••«..*
Total to Dec. 5, 1934*....... .
Gold Coin
$
40,979.08
29.487,580*84
$29,528,559.92
Gold Certificates
$
556,280.00
78.011,780*00
$78,568,060.00
$
$
$
604*00
257.302*00
257,906*00
NOTE: ■ Gold bars deposited with the New York Assay Office
to the amount of $200,572*69 previously reported*
14,400*00
1.892.200*00
$ 1,906,600.00
TREASURY DEPARTMENT
Washington
RELEASE MORNING NEWSPAPERS,
I Thursday. December 13, 1934«
12-12-34«
Press Service
EXTRACTS PROM ADDRESS of J.F.T. O ’Connor, Comptroller of the Currency, at dinner
tendered Congressman—Elect Richard M. Russell at Boston, Massachusetts on December
12, 1934#
I have rather a bright picture of the national banking situation in
|
Massachusetts to present to you —
At the conclusion of the banking holiday in
March, 1933, there were 24 unlicensed national banks, with deposits of $45,323,000
and all of these have been reopened under old or new charters, or absorbed by
other banks.
Where what we call the Spokane Plan has been used, and where it was
necessary to collect stock assessments, receivers have been appointed.
The total
! number of receiverships of national banks in Massachusetts is 11, with a deposit
liability of $46,732,000, and up to December 11, 1934, $20,677,000 had been repaid
to depositors.
There are at the present time 133 active national banks in
Massachusetts, with deposits of $1,202,656,000#
One of the stabilizing influences was the institution of Federal Deposit
Insurance.
Preliminary figures as of October 1, 1934 show* 210 financial insti
tutions insured in Massachusetts and these institutions had insured deposits in
the sum of $611,000,000, out of a total deposit liability of $1,582,000,000.
There are 1,474,000 insured accounts in the State of Massachusetts.
Since the
inauguration of deposit insurance on January 1, 1934, nine banks which were mem
bers of the Fund have failed, with a total deposit liability of approximately
$1,900,000.
Only one of these was a national bank with a deposit liability of
$40,000, $38,000 of which was insured.
l|
From January 1, 1934 to December 1, 1934,
46 banks which were not members of the Insurance Fund have failed throughout
the country.
It is interesting to compare this record with that of the twelve
years from 1921 through 1932 when 8,317 banks, with aggregate deposits of
$3*518*040*000, failed in the United States during the first ten months only of
such years.
"In other words, the average number of failures throughout the first
ten months of the twelve years was 693* with average deposits of $293,170,000, as
contrasted with 55 hanks which have failed thus far this year, nine of which were
members of the Insurance Fund*
A great deal has been said about the duplication of examinations of banks by
various agencies in Washington.
Washington.
There is no duplication of examinations m
Only two departments of the government examine banks —
the Treasury
Department and the Federal Reserve Board. •' The Comptroller of the Currency1^
Office supervises the examination of all national banks and no examiner except
one designated by the Comptroller of the Currency enters a national bank. . Fnese
examinations are made twice a year.
There nas been no complaint f^om the national
banks about the frequency or duplicity of examinations, because there is none.
It is true that a national bank may invite , or by agreement stipulate that a
representative of the Reconstruction Finance Corporation may secure information
from its records, but this is entirely a matter between the oank
Reconstruction Finance Corporation.
and the
The Federal Reserve Board examines state
member banks and this is a part of the agreement between the bank and the Federal
Reserve Board at the time of its admission to membership.
No other Federal
agency examines a Federal Reserve State Member Bank.
The Reconstruction Finance Corporation may make audits where a bank requests
its participation in its capital structure or loans.-
-uiese representatives are*.,v
more properly speaking, auditors and no one doubts the propriety of audits being
made in contemplation of investments or loans.
The Federal Deposit Insurance
Corporation has appraisers rather than examiners.■ Under the law the representa-^
tives of this Corporation appraise the assets of a state institution which
applies for membership in the fund.
It is tne duty of these appraisers to deter
mine whether the assets of the institution are sufficient to pay its deposit,
liability and this fact affirmatively found, the application for admission to the
Fund is grantedt
The work of an examiner is quite diiferent.
The examiner
investigates not only tlie loans, "bond account and other investments "but also
examines the minutes of the Directors, and it is a part of his duty to determine
whether or not there have "been any violations of the National Banking Act*
Honorable Henry Morgenthau, Jr*, at a press conference during the present
week, silenced the rumors of numerous and sweeping changes of the present
organizations in Washington*
The Secretary stated that the Treasury Department
would make minimum recommendations to Congress and this is the position also
stated in the public press by Senator Duncan U* Fletcher, Chairman of the Banking
and Currency Committee of the Senate and of Congressman Henry B* Steagall, Chair
man of this Committee in the House of Representatives*
Complete details of the October 17 Bank Call for national banks are not
available*
However, some of the schedules have been completed*
The total
deposits of licensed banks were. $20,821,392,000 ana showea an increase of
$888,732,000, or 4.46 per cent, since June 30, and an increase of $3,766,184,000,
or 22*08 per cent since October 25 last year.Posfcal Savings in national banks on
October 17, 1934, showed a decrease of $80,399,000, or 18*24 per cent, since June
30, and a decrease of $218,434,000, or 37.74 per cent, in the year*
The President and the Secretary of the Treasury sometime ago called from
your city one of your outstanding financial leaders, Honorable Thomas Jefferson
Coolidge.
As Under Secretary of the Treasury, he occupies the second highest
position in the Treasury Department and in the absence of the Secretary,, he is
the Acting Secretary of the Treasury*
He is rendering a fine service to this
nation and has justified in a high degree the confidence reposed in him oy the
Administration*
FOR RELEASE, MORNING PAPERS,
Friday, December 14, 1934#,
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury "bills to the amount of $75,000,000, or thereabouts.
They will be
182—'day bills; and will be sold on a discount basis to the highest bidders*
Tenders will be received at the Federal Reserve Banks, or the branches thereof,
no to two o !clock p*m., Eastern Standard time, on Monday, December 17, 1934#
Tenders will not be received at the Treasury Department, Washington*
The Treasury bills will be dated December 19, 1934, and will mature on June
19, 1935, and on the maturity date the face amount will be payable without
interest*
They will be issued in bearer form only, and in amounts or denomina
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded In
the special envelopes which will be supplied by the Federal Reserve Bahks or
branches upon application therefor*
No tender for an amount less than $1,000 will be considered*
must be in multiples of $1,000.
Each tender
The price offered must be expressed on the
basis of 100, with not more than three decimal places, e.g., 99*125.
Fractions
must not be used*
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must be accompanied by a deposit of 10 per
cent of the face amount of Treasury bills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour for receipt of tenders on December 17,
1934, all tenders received at the Federal Reserve Banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on tne following
morning.
Tne Secretary of the Treasury expressly reserves the right to reject
~
2~
any or all tenders or parts of tenders., and to allot less than the amount applied
for, and his action in any such respect shall "be final.
Those submitting tenders
will he advised of the acceptance or rejection thereof.
Payment at the price
offered for Trea.su.ry hills allotted must he made at the Federal Reserve Banks in
cash or other immediately available, funds on December 19, 1934»
The Treasury hills will he exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also he exempt, from all
taxation, except estate and inheritance taxes.
No loss from the sale or other
disposition of the Treasury hills shall he allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this notice prescribe
the terms of the Treasury hills and govern the conditions of their issue.
Copies of this circular may he obtained from any Federal Reserve Bank or branch
thereof
TREASURY DEPARTMENT
Washington
MEMORANDUM POR THE PRESS.
December 17, 1-934.
RECEIPTS OP SILVER BY THE MINTS:
(Under Executive Proclamation of December 21, 1933)
Week ended December 14, 1934:
San Prancisco ..............................
542,278.44 fine ounces
Denver ............
106.451.00
"
*
Total for week ended Dec. 14, 1934 .......
648,729.44
Total receipts through December 14, 1934 ..... 19,954,000.00
SILVER TRANSFERRED TO UNITED STATES:
(Under Executive Proclamation of August 9, 1934)
j
a
Week ended December 14, 1934:
Philadelphia ...............................
50,719.00 fine ounces
377,895.00
“
11
New Y o r k ...................................
San Francisco ..............................
13,229.00
11
Denver .....................................
1,294.00
"
”
New Orleans
......
244.00
Seattle ....... ................:............
927.00
H
1
Total forweek ended Dec. 14, 1934 ........
444,308.00
11
Total receipts through December 14, 1934 ..... 110,306,840.00
RECEIPTS OP GOLD BY THE MINTS AND ASSAY OFFICES:
Week ended December 14, 1934:
Philadelphia.................
New York .....................
San Francisco ................
Denver ..................
New Orleans ...........
Seattle ....................
___
Imports________
$
----$
23,142,200.00
292,260*53
47,002.00
4,071.44
...• -- — -
Total for week ended Dec. 14, 1934 $23,485,533.97
New
Secondary--- Domestic
285,312*08 $
170.10
542,000.00
27,800.00
139,871.69
964,987.99
27,065.00 736,042.00
30,981.48
683.22
24,687.33
255,310.08
$1,049,917.58 $1,984,993.39
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER1S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
Gold Coin
Week ended Dec. 1 2 ...... .
$
50,634.40
Received previously ....... .....
29,528,559.92
Total to December 12, 1934 ...... $29,579,194.32
Received by Treasurer’s Office:
Week ended Dec. 12 ...........
Received previously ..........
Total to December 12, 1934 ....
I
NOTE:
_______ Gold Certificates
$
451,890.00
78,568,060.00
$79,019,950.00
$
$
257,906.00
257,906.00
18,700.00
1,906,600.00
$ 1,925,300.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572.69 previously reported.
POE KEL3ilA.SE, MORNING PAPERS,
Wednesday, December 19, 1934.“
'
TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or therahouts,.
They will he.
183-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will he received at the Federal Reserve Banks, or the branches thereof,
up to two o'clock p.m., Eastern Standard time, on Friday, December 21, 1934,
Tenders will not he received at the Treasury Department, Washington,
The Treasury hills will he dated December 26, 1934, and will mature on June
26, 1935, and on the maturity date the face .amount will he payable without
interest.
They will he issued in hearer form only, and in amoimts or denominar
tions of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms and forwarded in the
special envelopes which will he supplied by the Federal Reserve Banks or branches
upon application therefor,
Ro tender for an amount less than $1,000 will he considered.
must he in multiples of $1,000,
Each tender
The price offered must he expressed on the basis
of 100, with not more than three decimal places, e.g., 99,125.
Fractions must
not he used.
Tenders will he accepted without cash deposit from incorporated hanks and
trust companies and from responsible and recognized dealers in investment securi
ties,
Tenders from others must he accompanied by a ueposit of 10 per cent of the
face amount of Treasury hills applied for, unless the tenders are accompanied by
an express guaranty of payment by an incorporated hank or trust company.
Immediately after the closing hour for receipt of tenders on December 21,
1934, all tenders received at the Federal Reserve Ranks or branches thereof up
to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount applied
for, and his action in any such respect shall he final*
Those submitting tenders
will he advised of the acceptance or rejection thereof*
Payment at the price
offered for Treasury hills allotted must he made at the Federal Reserve Banks i*1
cash or other immediately available funds on December 26, 1934*
The Treasury hills will he exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also he exempt, from all
taxation, except estate and inheritance taxes*
Ro loss from the sale or other
disposition of the Treasury hills shall he allowed as a deduction, or otherwise
recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions*
Treasury Department Circular Ro* 418, as amended, and this notice prescribe
the terms of the Treasury hills and govern the conditions of their issue*
Copies
of the circular may he obtained from any Federal Reserve Bank or branch thereof*
SQ A
TREASURY DEPARTMENT
Washington
December 24, 1934j
memorandum f o r t h e p r e s s
RECEIPTS OE SILVER BY THE MINTS:
(Under Executive Proclamation of December 21, 1933)
lieek ended December 21, 1934:
247,779,47 fine ounces
Philadelphia.... *••*♦•••*.........* ...... ... *
460,518,84 «
n
San Francisco...................*..... .
88.908,00
Denver. .............................
797,206.31
Total for week ended Dec. 21, 1934.......««
20,759,000.00
;lotal receipts through December 21, 1934*..... .
SILVER
VJiXV TRANSFERRED TO UNITED STATES:
ir-.—
.
(Under Executive Proclamation of August 9, 1934)
leek ended December 21, 1934:
4.233.00 fine ounces
Philadelphia..........**• •
685,957,00 11
"
l . New York
1.447.00 n
Denver
486.00 M
New Orleans
672.00 tt
Seattle
......
692,795,00
Total for week ended Dec. 21, 1934
Total receipts through December 2Ì, 1934 ,.......110,999,635.00
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES,:
leek ended December 21 ^ 1934.
rrt> £ --- 1
Philadelphia
22,089,400.00
9•
New York,
209,500.28
San Francisco,
20,197.00
Denver,
New Orleans
Seattle ...
k*ended"l)ec.*1 4 ^ *1 9 3 4 *.. $22,319,097*28
Total for week
New
Dome stic
Secondary.
$ 308,422.51$
997.57
555,800*00
24,800-00
97,126.87 1*517,784.89
35,334,00 749,014JOO
38,393.70
259.64
22*752.28 1 71r962,5M
$ 1 ,0 5 7 ,8 2 9 .3 6 $ 2 ,4 6 4 ,8 l8 .a
SOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREABUBERJS, OFFICE?
(Under Secretary*s Order of December 28, 1933)
Gold Coin
)
32,340.44
29^579,194*32
$29,611,534.76
Received by Federal Reserve Ranks
leek ended Dec* 19
Received previously........
Total to December 19, 1934,
Received by Treasurerrs Office:
leek ended Dec* 19*..... *•••**•
Received previously*.**...*..•**
Total to December 19, 1934*...**
NOTE:
*«*4*»
600*00
257*906*00
258,506.00
Gold bars deposited with the New York Assay Office to
the amount of $200,572*69 previously reported*
Gold Certificates
$
616,270.00
79,019,950.00
$79,636,220.00
$
7,300*00
1 T932,600*00
$ 1,932,600.00
FOR RELEASE, MORNING PAPERS,
Wednesday, December 26, 1934
'TREASURY DEPARTMENT
STATEMENT BY SECRETARY MORGENTHAU
The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $75,000,000, or thereabouts*
They will he
183-day hills; and will he sold on a discount basis to the highest bidders.
Tenders will he received at the Federal Reserve Banks, or the branches thereof,
up to two o 1clock p.m., Eastern Standard time, on Friday, December 28, 1934.
Tenders will not he received at the Treasury Department, Washington*
The Treasury hills will he dated January 2, 1935, and will mature on July
3 , 1935, and on the maturity date the face amount will he payable without interest
They will he issued in hearer form only, and in amounts or denominations of
$1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders he made on the printed forms ano. forwarded in
the special envelopes which will he supplied by the Federal Reserve Banks or
branches upon application therefor.
No tender for an amount less than $1,000 will he considered*
must he in multiples of $1,000*
Each tender
The price offered must he expressed on the
basis of 100, with not more than three decimal places, e*g*, 99.125*
Fractions
must not he used.
Tenders will he accepted without cash deposit from incorporated hanks and
trust companies and from responsible and recognized dealers in investment
securities.
Tenders from others must he accompanied by a deposit of 10 per cent
of the face amount of Treasury hills applied for, unless the tenders are
accompanied by an express guaranty of payment by an incorporated hank or trust
company.
Immediately after the closing hour for receipt of tenders on December 28,
1934, all tenders received at the Federal Reserve B^nks or branches thereof up
to the closing hour will he opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning.
The Secretary of the Treasury expressly reserves the right to reject
-
2-
any or all tenders or parts of tenders, and to allot less than the amount applied
for, and his action in any such respect shall "be final#
Those submitting
tenders will he advised of the acceptance or rejection thereof#
Payment at the
price offered for Treasury hills allotted must he made at the Federal.Reserve
Baiik:s in cash or other immediately available funds on January 2, 1935«
The Treasury hills will he exempt, as to principal and interest, and any
[ gain from the sale or other disposition thereof will also he exempt, from all
j taxation, except estate and inheritance taxes#
Ho loss from the sale or otner-
disposition of the Treasury hills shall he allowed as a deduction, or otherwise
I recognized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department CircularUo# 418, as amended, and this notice prescribe
I the terms of the Treasury hills and govern the conditions of their issue# Copies
I
[ of the circular may he obtained from any Federal Reserve Bahk or branch thereof«
!
I
TREASURY DEPARTMENT
Washington
December 31, 1934,
memorandum e o r t h e p r e s s .
RECEIPTS OP S H Y E R BY THE MINTS:
(Under Executive Proclamation of December 21, 1933)
leek ended December 28, 1934:
Phil adelphia ....... ............. .
San Francisco ............ ..............
D e n v e r ..... .......... .
150,478.67 fine ounces
210,806.62
»
»
122.993.QQ
“
484,278.29
21,243,000.00
Total for week ended Dec, 28, 1934 ....
Jotal receipts through December 28, 1934 ....
»
0
"
11
[SILVER TRANSFERRED TO UNITED STATES:
[ (Under Executive Proclamation of August 9, 1934)
feek ended December 28, 1934:
Philadelphia ......................
New Y o r k .................... . *4 ...
Denver ............ ....... ........
New O r l eans......... ..... .
Seattle........ ....¿.............
Total for week ended Dec. 28, 1934
Total receipts through December 28, 1934
3.578.00
27.101.00
2.106.00
540.00
29.780.00
63.105.00
111,062,000.00
fine ounces
11
11
11
11
n
11
11
11
11
it
ii
11
RECEIPTS OF GOLD BY THE MINTS AND ASSAY OFFICES:
|eek ended December 28, 1934:
Philadelphia ................... .
New York ........
San Francisco ............
Denver ..............................
New Orleans ...... ..................
Seattle .......... ..... ......... ..
Total for week ended Dec. 28, 1934
____ Imports
$
_-h13,605,900,00
361,623.59
32,344.00
...
...
Secondary
$158,816.10
311,700.00
124,846.83
40,351.00
62,014.46
20,997.73
$13,999,867.59
$718,726.12
New
Domestic
$
233.80
1,203,581.13
790,237.00
349.65
210,839.39
$2,205,240.97
GOLD RECEIVED BY FEDERAL RESERVE BANKS AND THE TREASURER’S OFFICE:
(Under Secretary’s Order of December 28, 1933)
Received by Federal Reserve Banks:
_______Gold Coin
leek ended December 26, 1934 .......... $
20,308.28
Received previously .................. . 29,611,534,76
Totc-1 to December 26, 1934 ............ . $29,631,843.04
Gold Certificates
508,780*00
79,656,220,00
$,80,145,000.00
Received by Treasurer’s Office:
leek ended December 26, 1934 ..........
Received previously .... ..............
Total to December 26, 1934
.......
$
NOTE:
$
$
258,506.00
258,506.00
Gold bars deposited with the New York Assay Office
to the amount of $200,572,69 previously reported.
$
$
5,000.,00
1,932,600.00
1,937,600.00
@FedFRASER