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I te a s .
f4 i
I

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'f i m p y

)U

L I B R A R Y
P O O M 5030

jUN
TREASURY

141972
d epa rtm ent

IMPORTS OF COMMODITIES FROM THE PHILIPPINES UNDER QUOTA.
.PROVISIONS OF PHILIPPINE INDEPENDENCE ACT AND CORDAGE ACT OF 1935
Preliminary Figures, as of July 2, 1938

Customs District

TOTAL IMPORTS
Per Cent of Quota
Hawaii
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
St. Louis
San Francisco
Virginia
Washington

:______ January 1.,,tg. July. 2,.JL938______
:
: REFINED : UNREFINED
SUGAR
: COCONUT OIL : SUGAR
:
:
(Pounds)
: (Pounds) :
(Pounds)
179,110,193
40.0%
11,638
5,095,154
1,325,850
35,031,542
29,557,696
90,068,749
-

6,738,418
72,564
10,536,234
672,348

54,030,866 1 ,222,253,828
68.2%
48.2%

14,896,921
-

16,268,475
22,865,470

15,773
390,245
119,246,937
65,511,770
190,133,834
488,392,012
33,759
321,482,640
.-

37,046,858
' •»

: May 1 to July
:
:
:

1938
CORDAGE
(Pounds)
216,573
3.6%
47,684
62,705
-

76
10,046
3,630
7,620
76,313
8,497
-

(Prepared by Division of Statistics and Research, Bureau of Customs)

I

The Commissioner of Customs today announced preliminary
figures for imports of commodities coming into the United States
from the Philippine Islands under the quota provisions of the
Philippine Independence Act, during the period January 1 to
July 8, 1938, and under the Cordage Act of 1935, during the
period May 1 to July 2, 1938, also the percentage that such im­
ports bear to the totals allowable under the <$iota provisions,
as follows:

TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Friday, July 15, 1938.__________
7 /1 4 /3 8 .

Press Service
No. 14-0

The Commissioner of Customs today announced preliminary figures for
imports of commodities coming into the United States from the Philippine Islands
under the quota provisions of the Philippine Independence Act, during the period
January 1 to July 2, 1938, and under the Cordage Act of 1935, during the period
May 1 to July 2, 1938, also the percentage that such imports hear to the totals
allowable under the quota provisions, as followsî

Customs District

TOTAL IMPORTS
Per Cent of Quota
Hawaii
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
St. Louis
San Francisco
Virginia
Washington

•
January 3 to July 2,
•
REFINED
•
SUGAR
: COCONUT OIL
(Pounds)
l
(Pounds)
179,110,193
40.0#
11,638
5,095,154
1,325,850
35,031,542
29,557,696
90,068,749
—
6,738,418
72,564
10,536,234
672,348

1938
: UNREFINED
:
'SUGAR
î
(Pounds)

:May 1 to July 2
:
1938
:
CORDAGE
J
(Pounds)

54,030,866 1, 222,253,828
68.2#
48.2#

14,896,921
«
—
16,268,475
—
—
22,865,470

— oOo—

15,773
390,245
119,246,937
65,511,770
190,133,834
488,392,012
33,759
321,482,640
37,046,858
-

m
m

216,573
3.6#
47,684
62,705
76
10,048
3,630
7,620
76,313
8,497

TREASURY DEPARTMENT
OFFICE OF THE SECRETARY

WASHINGTON

CO M M ISSIO N ER O F
A C C O U N T S AN D D E P O S I T S

July 7, 1938«

TO MR. GASTON:
During the month of June, 1938, the
following market transactions took place in
Government securities:
Total purchases ....... . $ 886,000
Total sales •••••*••«••»•
Het purchases

102,500
$ 783,500

TREASURY DEPARTMENT
Washington

f
FOR IMMEDIATE RELEASE,
Friday, July 15, 1938,

Press Service
No. 14-1

Market transactions in Government securities for Treasury investment
accounts in June» 1938, resulted in net purchases of $783,500, Secretary
Morgenthau announced today.

— oOo—

TREASURY DEPARTMENT
Washington
EOS RELEASE, MORNING NEWSPAPERS,
Monday, July 18, 1938.________
7/15/38.

Press Service
No. 14-2

Secretary of the Treasury Morgenthau today made public data from
the “Statistics of Income for 1936, Part lu, compiled from individual
income tax returns filed during 1937, prepared under the direction of
Commissioner of Internal Revenue Guy T. Helvering.

This report will be

released at a later date.
The returns for 1936 numbered 5,413,499, of which 2,861,108 were
taxable and 2,552,391 nontaxable.

As compared with the number of returns

for 1935, the total number of returns increased by 838,487, or 18.3 per­
cent, the number of taxable returns increased by 750,218, or 35.5 percent,
and the number of nontaxable returns increased by 88,269, or 3.6 percent.
Aggregate net income shown on the 1936 returns is $19,240,109,644,
which is an increase of $4,330,297,619, or 29.0 percent, over the amount
reported on the 1935 returns.

The net income shown on taxable returns is

$14,218,853,550, which is an increase of $4,184,747,575, or 41.7 percent,
and the’net income on nontaxable returns is $5-,021,256,094, which is an
increase of $145,550,044, or 3.0 percent.
The tax liability reported on taxable returns is $1,214,016,803,
which represents an increase of $556,577,460, or 84.7 percent.

The effec­

tive tax rates are 6.3 percent for all returns and 8.5 percent for taxable
returns.

The effective rates of tax for returns for 1935 were 4.4 percent

for all returns and 6.6 percent for taxable returns.

2

The returns for 1936 are filed under the provisions of the Revenue
Act of 1936 and therefore reflect the application of a normal tax computed
on dividends received from domestic corporations, as well as the increased
surtax rates imposed on net incomes of more than $50,000.
The statistics are taken from returns as filed and prior to any
revision or adjustment that may subsequently be made as a result of audit
by the Bureau of Internal Revenue, and include data.from amended returns
showing net income of $100,000 and over but not from tentative returns,
or amended returns with net income under $100,000.

The data from income

tax returns filed by individuals having net income of $5,000 and over are
tabulated from each such return.

The data for individuals reporting net

income of less than $5,000 are estimates based on samples of such returns«
The three following tables contain data for 1936 individual income
tax returns compared with similar data for the 1935 returns.

The first

table, on page 3, presents the number of returns, net income and total
tax, in aggregate for the United States and by States and Territories.
The second table, on page 4, presents the number of returns, net income
and total tax, by net income classes. • The last table, on page 5, presents
the sources of income and deductions, net income, normal tax, surtax and
to tal tax,

3
Individual income tax returns for 1936 and IS35 by States and Territories ;
Number of returns , net income and total tax.
(Money figures in thousands of dollars)
■

STATES
AND
1 TERRITORIES

Number of returns
1935
1936

31,712
JgA.labama
16,842
•Arizona
’
^Arkansas
16,587
436,128
«California
40,332.
«Colorado
121,805
H e onne cticut
IDelavmre
13,739
.«District of
Columbia
106,863
iiFlorida
44,048
■Georgia
49,512
«Hawaii
15,214
«Idaho
14,201
418,303
«Illinois
•Indiana
103,303
•Iowa
67,345
ipansas
47,374
j«Kentu cky
45,189
Mijouisiana
43,728
Maine
25,057
«Maryland
105,673
■iassachusetts
284,320
iMichigan
239,363
IKiinnesota
86,294
Mississippi
16,296
«Missouri
130,521
Montana
23,936
pebraska
36,887
'Nevada
7,554
JNew Hamp shire
19,664
-Mew Jersey
260,328
«¡pew Mexico
11,222
1p e w York
976,939
«North Carolina
42,075
jNorth Dakota
10,809
jOhio
308,789
■Oklahoma
51,277
■Oregon ‘
37,778
■Pennsylvania
470,511
H ^ o de Is1and
38,424
«South Carolina
19,975
■South Dakota
10,724
«Tennessee
48,048
«Texas
156,855
frtah
16,262
i/’emont
12,193
Virginia
62,449
|r<ashington _V
88,640
West Virginia
47,527
Wisconsin
124,202
Wyoming
10,702
Total
’5,413,499*

\1) Includes Alaska

26J141
13j941
14,085
367,757
33,475
100,898
11,371

Net income
1935
1936
$

106,648
51,444
61,15*7
1,494,599
146,499
439,106
96,695

327,468
95,271
197,705
38,021
46,702
181,626
13,262
58,738
11,005
41,693
1,599,035
345,857
82,436
332,021
57,788
184,118
39,492
145,617
39,763
157,007
40,123
160,055
21,826
88,859
92,550
391,589
257,495
988,904
173,799
862,578
72,258
296,979
13,570
54,517
110,370
462,885
19,924
68,788
31,253
115,138
6,441
27,045
17,687
62,820
223,489
928,153
9,272
34,953
852,076
3,864,453
35,813
156,362
10,039
26,705
246,888
1,078,986
44,909
170,786
33,273
118,061
389,994
1,604,325
33,009
141,968
16,826
61,787
9,582
27,756
42,341
173,317
569,444
131,447
14,088
50,927
10,903
3 7,146
54,835
218,974
2,59,650
69,919
145,746
37,224
105,785
338,951
8,739,
30,327
4,575,012 |19,240,110

0

80,444
38,298
43*351
1,172,303
108,379
340,303
64,760

Total tax
1936
1935
<*>

3,435
1,420
2,074
76,4^8
8,935
35,983
25,539

|

1,702
648
797
42 >033
4,057
17,227
11,402

13,291
7,176
268,667
144,693
18,608
8,933
150,963
4,149
8,479
2,396
46,902
4,408
29,803
752
351
1,171,834
102,036
51,134
245,980
15,648
8,487
148,526
4,841
2,791
3,945
111,404
2,042
125,101
6,582
3,742
122,582
8,395
3,066
69,455
5,181
2,568
316,888
12,013
21,594
58,876
825,327
31,804
60,303
568,270
28,319
222,818
6,673
13,677
36,879
1,740
870
358,068
24,211
12,426
56,720
1,411
981
93,113
3,222
1,796
20,681
2,226
1,364
1,435
51,554
3,059
737,155
54,395
34,604
365
25,400
800
3,106,264
348,687
:
202,971
124,880
10,499
6,419
352
191
23,077
28,982
766,529
58,477
139,148
3,433
6,632
3,213
91,306
1,626
1,273,383
57,053
104,979
113,641
10,756
6,002
1,654
803
47,010
345
24,694
431
7,343
135,557
3,937
439,163
19,498
27,266
686
39,903
1,458
5041,196
30,294
5,269
11,791
171,204
3,868
7,876
197,924
2,276
5,161
106,920
13,615
2.58,590
5,577
1,129
23,703
646
$14,909,812 $1,214,017 $657,439

- 4 Individual income tax returns for 1S36 and 1S35 by net income classes:
number of returns, net income and total tax.
(Net income classes and money figures in thousands of dollars)
Number of returns
Net income
Total tax
1935
1936
1935
1935
1936
1936
■Jet income classes
Binder 1
!ÏJnder 1
■L - 1.5
B. - 1.5
11.5 - 2
Kl.5 - 2
12 - 2.5
I 2 - 2.5
R.5 - 3
¡B2 . 5 - 3
3 - 3.5
3 - 3.5
■3,5 - 4
■3,5 - 4
« - 4.5
■4 - 4,5
K l.5 - 5
■4.5 - 5
1 - 6 1 /
m - 6
- 7
7 - 8
8 - 9
■9-10
io - 11
■il - 12
B l2 - 13
- Ö*
■ 4 - 15
- 20
K o - 25
■25 - 30
H O - 40
- 50

(est.) y
(est.)
(est.) y
(est.)
(est.)
(est.)
(est.)
(est.)
(est.) y
(est.)
(est.) l / ‘
(est.)
(est.)
(est.)
(est.) 1/
(est.)
(est.)
(est.)

y
1/

1/
y

B

B3
B5

Jfto

0
C
D
1
OQ
L

■60 - 70
0
CO
1
0
c
-

■80 - 90
■90 - 100
ÉjjlOO - 150
|150 - 20Ö
■200 - 250
■250 - 300
■300 - 400
■400'- 500
É500 - 750
■750 - 1,000
■1,000 - 1,500
■1,500-- 2,000
■J,000 - 3,000
^▼3,000 - 4,000
4,000 - 5,000
5,000 and over
Classes grouped %/
Total

-

288,910
10,684
660,160
427,115
335,505
355,151
343,618
155,829
497,253
126,999
218,080
162,963
77,059
157,185
25,171
126,270
11,396
95,549
6,970
125,672
84,618
55,249
38,546
28,787
22,320
17,574
13,995
11,811
9,797
31,477
16,590
9,763
10,690
5,576
3,256
1,948
1,319
923
587
1,395
523
236
137
132
74
80
29
23
8
2
7
1
-

.176,861
10,252
841,730
758,908
612,681
798,090
818,955
469,820
1,521,863
514,614
719,808
747,610
245,463
773,111
63,437
673,269
16,467
577,542
3,990
908,134
711,155
546,368
438,157
369,986
319,109
279,845
250,882
222,042
205,648
792,093
559,073
409,563
589,817
401,112
293,064
220,084
162,205
130,394
107,771
311,279
156,078
94,871
56,981
75,136
49,387
76,010
46,752
38,279
14,517
35,426
(2)
(2)
19,419

5,413,499

4,575,012

19,240,110

258,474
19,329
707,495
585,871
353,789
464,634
360,681
212,278
560,437
184,356
225,366
229,879
66,723
207,787
15,171
158,823
3,506
121,889
749 '
166,221
110,009
73,174
51,708
39,025
30,454
24,369
20,101
16,462
14,196
45,978
25,089
14,996
17,140
9,001
5,364
3,406
2,174
1,539
1,137
2,606
909
425
210
219
111
124
54
33
9
14
4
1

-

-

193,095
5,8p4
787,819
554,732
581,579
610,698
780,605
344,615
1,352,712
353,651
697,649
530,307
284,626
588,729
105,913
535,292
53,842
452,749
37,866
686,589
546,931
412,521
326,653
272,842
233,831
201,745
174,655
159,202
141,942
541,398
369,499
266,685
367,581
248,044
177,664
125,892
98,453
78,051
55,713
166,379
90,054
52,501
37,357
45,103
32,804
48,904
24,907
27,518
13,575
(2 )
23,417
(2)

331
4,195
9,816
7,945
6,043
6,793
8,227
8,567
8,643
16,933
16,427
15,697
15,328
14,983
14,479
14,019
13,609
12,922
12,725
57,056
50,802
45,419
80,003
65,917
56,267
48,598
40,734
36,835
33,611
116,156
70,355
47,024
30,002
42,141
29,329
47,987
30,958
26,247
10,216
26,085
(?)
(2)

10,741
10,044
9,508
9,297
9,139
9,785
8,432
7,938
7,794
7,445
33,230
29,130
25,939
44,236
36,496
30,823
25,075
22,110
19,427
15,381
54,132
35,022
22,276
16,740
21,192
16,053
25,017
13,306
15,227
7,566
(2 )
13,415
(2)

9,121

14,590

5,292

-

-

125
2,930
7,128
5,401
3,910
4,242
5,264
5,627
5,606

-

-

14,909,812 1,214,017 657,439

l/ Nontaxable returns. Specific exemptions from normal tax and surtax exceed net
income. A negligible number of nontaxable returns in net income classes of $6,000
and over is not tabulated separately.
2/ Cla sses grouped to conceal identity of taxpayer.

Individual income tax returns for 1936 and 1935: sources
of income and deductions, net income, normal tax,
surtax end total tax
(Money figures in thousands of dollars)

Sources of income and deductions
Number of returns .............................
Sources of income:
Salaries, wages, commissions, fees, etc.
Business profit
Partnership profit 1J
Net capital gain 2/..................
Rents and royalties.... .............
Dividends received 3/ ...... ........ .
Income from fiduciaries l/ ..........
Taxable interest on partially tax-exempt
Government obligations 4/ ..........
Other taxable interest 5/ ......
Ot h e r income 6/ ........ .
Total income ........

1936

1935

5,413,499

4,575,012

11,661,274
2,374,258
1,022,288
973,796
685,063
3.173,844
826,184

9,900,578
1,855,019
739,822
509,714
572,060
2,234,727
328,978

43,627
887,684
240,357

43,820
900,501
231,286

21,888,373

17,316,505

Deductions:
79,520
21 ,3*7
129,704
544,869
698,609
385,838
788,416

67,453
23,876
145,7*28
503,730
596,559
305,155
764,191 ...
2,406,693

Partnership loss l/.. . . . . . . . . . ....... * •
Net capital loss 2/ .................
Interest paid V j ....................... .
Taxes pa.id 7J ................ ...........
Contributions ........................ .
Other deductions ......... .......... .
Total deductions ..............

2,648,263

Net income ............ ........

19,240,110

14,909,812

330,197
883,820
1,214,017

152,814
504,625
657,439

ivnrtay

................
Total tax

.......... .....

1/ For both 1935 and 1936 ."partnership profit" and "income from fiduciaries"
include net capital gain or loss allowed partnerships and fiduciaries,
respectively, upon ss.le of capital assets, "but exclude taxable interest
on obligations of the United States received by these entities. In 1936
all dividends received by partnerships and fiduciaries are included in
"partnership profit" and "income from fiduciaries", respectively, whereas
in 1935, dividends on stock of domestic corporations subject to taxation
under Title I of the effective revenue act wore excluded from these ite^s.
2/ Net capital gain or loss on sale of capital assess of individuals. (See Sec*
117 of the Revenue Acts of 1934 and 1936 for applicable limitations). Amount
excludes net capital gain or loss on sale of capital assets by partnerships
or fiduciaries, which are included with other income (or loss) from partner­
ships or other income from fiduciary.
3/ For 1936, amount includes dividends on stock, of both domestic and foreign
corporations, oxcopt insofar as such dividends are included in the pa.rtno.r—
ship or fiduciary classifications. For 1935, amount includes only dividends
on stock of domestic corporations subject to «taxation under Title I of the
effective revenue act, and includes such dividends even though received by
partnerships and fiduciaries.
4/ Interest received on United States Savings Bonds and Treasury bonds, owned
in excess of $5,000, and on obligations of certain instrumentalities of the
United States, reported cn returns with net income of $5,000 and over. In­
cludes taxable interest on obligations of the United States rocoivod by
partnerships and fiduciaries.
5/ Includes taxable interest received on partially tax-exempt Government obli­
gations reported on returns with net income under $5,000.
6/ For 1936, amount excludes dividends recoivod on stock of domestic corpor­
ations net subject to taxation under Title I of the effective revenue act
and on stock of foreign corporations. For 1935, dividends recoivod from
theso two typos of corporations wore included in "other income", except
insofar as included in partnership or fiduciary income.
7/Excludes amounts reoertod in Schedules A and B as business deduction.

(ten)«
The report of &

Rear

Admiral

R.R.

Waeqche, Commandant of the Coast

Guard, showed that during the 1938 fisoal year .m m t smuggling
/
~
a
a
r\ .
seas» virtually ham disappeared.
From time to time during the year a number of
placed

under
__

business

foreign

ape quantities
seized*

A

year

seized by the Coast
arrests

were

T

During the

640

vessels

surveillance. They were principally in the alcohol smuggling
jk
illicit
but it was believed that comparativelyalittl©. liquor
7y

was landed.

were

from the high

were
of

made»

eight

Guard.
394

vessels»

seven domestic

In cooperation with
stills

SMMR9C and

illicit liquor» narcotics

and one jfjs. foreign,

other enforcement agencies
considerable

and other aaaoifcac merchandise

(nine )— —
Intelligence

Unit

Sixty eight persons
Courts during the 1938
same period

fiscal year

taxes and penalties

SSfiBfec for assessment.
arrested

and

for

tax

evasion

aggregating

In the

$31,555,494

were convicted in the Federal
and during the

$26,106,013

were

recommended

1937 fiscal year sixty six persons

in taxes and penalties

were

were

recommended for

assessment.
In addition to the collection of

taxes, penalties and

interest, substantial revenue acorued to the Treasury by the m y
imposed

in criminal cases*

In some jurisdictions

additional penalty by requiring

the courts

of fines
imposed

the defendants to pay the costs of

investigations, including the salaries and expenses of agents conducting the
inquiries*
Coast

Guard

Following the
Secretary Morgenthau

the Coast

cooperate« plan inaugurated by
* \
Guard acted not only with the
various

agencies of the Treasury, principally
and the

Aleohol

Tax

Unit,

but with the Commerce

of Navigation during the year
federal laws.

Due

to these

enforcement activity in

the Bureau of

Departments Bureau

in the enforcement of a wide
activities there

relation to

of moonshine stills and liquors and

was

9

narcotics smuggling,
enforcement of

were

Coast

trailed

the suppression of

A
in the location of
illicit
in b > patrol work along the

^

Guard

Coast Guard

range of

increased
the seizure

the navigation laws •
More than

ships

Customs

craft

aircraft

4,000

in connection with
rendered

important

aid

whiskey stills and Jooperated with the Customs Service
borders* (more)-0-

(eight)— Secret

Chief
reported

that

SjMNifeepKE
fiscal year«

counterfeit

Counterfeit
Service

Service

forgery

notes

aggregating

#619,290

were

as compared with #654,787

coins

in 1938

in the amount of
against

seized

during the

in the 1937

#54,423

#67,393

Secret Service

were confiscated

in the former year*

Agents

arrested 2,963 persons on charges of counterfeiting,
£
miscellaneous offenses during the year* m
1937 2,600

and other

persons were

apprehended
The amount

notes surrendered
decreased

J* Wilson, of the United States

1938 fiscal year

by the Secret
Secret

Frank

Service

from

by this law
of losses

to the Secret

#487,643

in

enforcement

to the public

Service

1937

to

by

was

inaugurated

through counterfeit

banks and innocent

#403,843

Under the d irection of Chief
educational campaign

branch*

takers

in the fiscal year 1938«

M is on an energetic

to .protect__banks, business men and
*
~
* * Attention
these-" «tomcat» »■»

crjpt'XAJtLws/J djL
'

money so
spurious

Talks

biJLis

might

were made

operations

by

2,314

Secret

96

Service

ana

result^ losses

experts

resulted in convictions

action^ of the courts*
was

oe^ detected

in

while

(more) -o-

redacted*

fifteen states

821

The percentage of convictions

percent*

that

are

before

awaiting

in cases

tried

(seven)———
The largest
the Bureau of Customs

seizures of H p N E C

in New

York

narcotics

were made

in August and September

by

of

1937,

a total of about 63 pounds of opium and heroin having been confiscated«
At
were

San Francisco

in April, 1938«

seized« In both oases

Federal Court sentences

539 ounces of smoking Jqtttot opium

arrests

ranging

involved in the San Francisco

were made and offenders

from one to fifteen years«

seizure

were

received
Three

sentenced to prison

at

Chinese
Shanghai \

JLadlcaUiig lira ciiupei alie n uf blie— Chinese ■government— In the nuppi uu>'Jbcu.

of the naroet i o l1
aulLii't «""
In another
Ahft

i

f

case

of

international

---g.«Ft Lycai«

e Bureau of Customs
for As. attempted

importance,
n v m

arrested

-----nynT) C arlos

Jaoob N« Gottlieb

heroin smuggling* Gottlieb committed suicide

in New

York

in the Albany

(Xr~
county

Jail

after

a

confession

dope s m u g g l i n g T h e
crushing -fcfc» z n M M h f

Gottlieb

whioh involved
confession

was

international
of importance

in

drug conspiracy .

Foiling seizures of n&rootics and arrests
at Nogales, Ariz«,
is
A
in August the attention of the Mexican government was brought to the
smuggling situation« As
American authorities
the cultivation

a

result of cooperation

energetic measures have

of opium
(more)--«

poppies

in

Mexico*

between the Mexican and

been taken to suppress

(six)--Bureau of Customs

Customs Commissioner
Morgenthau
were

that

James H. Moyle

the law enforcement

activities

devoted in large measure to operations

narcotic

reported to Secretary
for the 1958 fiscal year

against the illicit

traffic in

drugs•
“Acting independently or in cooperation with the Bureau of Narcotics,

a number of highly important
said.

instructed

of smuggling

encountered

made, * Mr* Moyle

States, sharp

scarcity

of these

Mr* Moyle*s

New York to
remained

There

Service

Results

traffic

were

were

most

gratifying,

of narcotic

more than doubled.

rises in the prices of nsprooties

drugs

was

Elsewhere

were indicative

drugs* *
report

showed

be introduced into the Port of New York
quantities*

active

wish that they concentrate

an acute shortage

and prices in the illicit

in the United

express

of narcotics*

intensified enforcement measures,

large

were

1937« All branches of the Customs

that it was the Secretary* s

on the suppression

of a

of drugs

“The year, generally speaking, was considerably more

than in the fiscal year

of

seizures

that illicit

and vicinity

was evidence that they

various inland cities,

were

drugs continued to
in J M N H 0 K considerable

being

transported overland from

The prices in New York for

fairly constant, varied by occasional fluctuations

seizures *
(more) -o<

narcotics

resulting

from

Other

alcohol

Tax Jnit

statistics

follow:

Fiscal year ended June 3Q
ÍÍ30
Seizures and arrests»

Stills seised
Distilled spirits seised (gallon*)
Mash seized (gallons)
Automobiles seized

Trucks seised
Value of property seised

I S ¿143
'476¿5í&
1 2 ,3 6 5 ,2 3 4
3 ,9 7 3
490
#3,965¿360

11,407
'305¿343
7,555¿023
5 ,738
496
|3fm ; i 6 9

9 ¿457
33,123
19¿632
8 ,5 6 1
293
#410

7¿141
27¿892
17,810
7,664
306
#352

Prosecutions*
Defendants pending Grand Jury action June GO

Defendants rocOTiondod for prosecution
Defendants convicted
Defendants pending Trial action June 30
Average sentence to be served (days)
Average fine to be paid

(four is

and a half)

During the 1935
nash| the

reoognized

and 1936

criterion

of

fiscal
illicit

were made in the north^
1938

fiscal years

States* a
liquor

there

territory of

laws«

years

the

large

distilling operations*
In the

was

a

shift

of

seizures of

1937 and

rash seizures to the Southern
ft I— 1<M
^
ttially the small violator of the
essenl

A

>

/

(four)—

Chicago

412

378

San Antonio

590

496

Kansas City

281

223

Minneapolis

59

57

Denver

50

50

San Francisco

272

337

Seattle

100

78

Honolulu

96

81

j Convictions
unregistered
3,436

for legitimate

during the

the year

1938

before *

fiscal year

For

were

the

1938

84

with

of

as compared with 1,067

were

121

imposed

sentences

compared

with

narcotics

as compared

reflected

the

acquitted

the year
of

with

numbered
3,518

convictions for

the 1938

in the 1937 fiscal year.

gradual

Act, a condition noted

persons

compared

distribution

registered distributors

693

Harrison

per sons

fiscal year

reduction in convictions
of

among

improvement

during the last

in observation

few

years.

for violation of the narcotic laws

before.

5,822 years

Federal courts
and fines of

The

Hi

as

for 1938

#167,309
I

6,380

years

Reports
were

and

from

#200,101 in fines the previous

other

Treasury law enforcement

year.
agencies

as follows *
Alcohol
ij/

Reflecting •

$s
U^7WWVU ft PP * 1938

A

federal liquor
report of

laws

Stewart

the

( X j U U *

*5*

general^deoline o f ^ tbs

activity- of

ffiOTOTTl asaea^anaa^nur'ing the 1938

fiscal year«

25,884
,

Unit,

persons

against

were

29,477

arrested

for the year

for violation
before,

of the

according to the

Berkshire, Deputy Commissioner of Internal Revenue.
e) - o-

(three)-Twenty

4

four individuals

were involved, including
was

the offense oharged
Tong«

In this o&se

Pittsburgh and New
successfully

Haim, who at the time

national president

were made in Los Angeles, Butte, Mont«, Chicago,
iv£T
----'j
York* Most of the defendants haws already been prosecuted

and many have been sentenced to I long
ederal

was marked

evil i in which

the government

had

prison terms*
cdtXWM»
against the

excellent cooperation

state and local authorities« The illicit traffic in marihuana
offense October
hemp

of the

arrests

^he year
marihuana

Yee

1, 1937*

Hundreds of

acres

J f l M M t t f t M M M M M t t i or hashish—

of the

were

became

from
a «federal

weed— - f l S t t H Indian

destroyed

Bureau during the year • Marihuana is an Insidious narcotic

by

the

used chiefly

in the form of cigarettes«
During the year the Bureau of Narcotics
9,561

ounces

Arrests

of

drugs

numbered
3,469

seised

as compared with 21,418 JME

3,206

for

in the 1937

uud pui ulnnJBil

ounces t h e ^ y S ^ ^ ^ f u rT;«

the I H K 1 1933 fiscal year compared with
fiscal yeai^

and by districts

as follows:
District

Fiscal year

1937

Fiscal year

Boston

121

77

New York

502

681

Philadelphia

210

162

Baltimore

150

113

Atlanta

173

81

Nashville

232

193

Detroit

22)

199

(more ) -o-

1938

were

l/$j^Ccr\X o *

(two)— 'Commissioner H.J. Axislinger, of the Bureau of Narcotics, reported Jj
that a

survey disclosed /«stew

«One of the most
is shown in the results of

the maximum number of non-medical

encouraging
a

developments

during the year

survey conducted by the Bureau of Narcotics

which indicates that addiction to narcotic

drugs

in this country is

and that the ratio ofAaddition, which was formerly considered

\

A narcotic
ramifications

was

drug smuggling

crushed

conspiracy

of

declining

be

to

one in

world-wide

by the Bureau of Narcotics

in collaboration

with

the Bureau of Customs* This resulted in the indictment of 30 persons, members
of a
alias

ring headed by

Jasha Katzenberg, W

Joseph Lvovsky

Lepke, of New York* The smugglers

Japanese concession
in approximately a

w sufficient

Louis

obtained their narcotics

in Tientsin, China , smuggling
year

and

drugs

addicts for that period, or about- one-fifth

Buohalter

in the

into the United States

to supply the needs of

of all

10,000

drug addicts in the

country*
"This

case

over illicit

narcotic

My. Analinger

said*
Another

distributing

ring

was a forceful demonstration of the absenoe of control

drugs

case

in the Japanese dominated

of

composed of
(more) -o-

interest involved

areas

in China,

a nation-wide

*

narcotic

Chinese who were members of the Hip Sing Tong*
\

oatur
during the year

law

against the

decline

in that illicit
Reports

Cooperating
cheat

narootios

evil

to ¿Mf

Secretary

joint

the government

A

attack

are

and

law

enforcement

a reduction in bootlegging,

against the federal revenue and currency.
on criminals who attempt to ■ ■ P H I

the Bureau of Narootios,

Unit of the Internal Revenue Bureau,
the Bureau of Customs

in an iaapor^gjit

from the various

likewise indicated

and other offenses

in the

resulting

traffic^UJooi
traffic
uIS1IT

of the Treasury

counterfeiting

o o n t o*1 of the intensive

ended June 30, 1 9 3 ^ /

campaign

agencies

©nforcement activities of the Treasury Department

Intelligence

the Alcohol Tax Unit, the Secret Service,

the United

States Coast

Guard.

Analysis of the reports of the six enforcement

agencies reveals
#

that

Secretary Morgenthau1s policy of coordinating the work of all Treasury investigative

forces

in combatting crimes

with continued

falling within its

success A the past year*

These

©fanfiorcement work met
agencies,working together

closely-knit organisation under
coordinator,

çpSBHflL direction of Elmer Lj^Irey, chief
t#C
registered^ainsBet oo

W w , c h a r a c t e r u M Urn
criminal operations effectively c
<■
A
N
through concentration of investigators in areas of major violations.
A

as a

TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Monday, July 18, 1938.
7/16/38.

.

Press Service
No. 14-3

A continuation of the intensive campaign against the narcotics
evil, resulting in an important decline in that illicit traffic, featured
law enforcement activities of the Treasury Department during the year
ended June 30, 1938.
Reports to Secretary Morgenthau from the various law enforcement
agencies of the Treasury likewise indicated a reduction in bootlegging,
counterfeiting and other offenses against the Federal revenue and currency.
Cooperating in the joint attack on criminals who attempt to cheat the
Government are the Bureau of Narcotics, Intelligence Unit of the Internal
Revenue Bureau, the Alcohol Tax Unit, the Secret Service, the Bureau of
Customs and the United States Coast Guard.
Analysis of the reports of the six enforcement agencies reveals
that Secretary Morgenthau!s policy of coordinating the work of all Treasury
investigative forces in combatting crimes falling within its field of law
enforcement work met with continued success in the past year.

These agencies,

working together as a closely-knit organization under direction of Elmer L.
Irey, chief coordinator, registered substantial gains especially in the
size and character of large scale criminal operations effectively suppressed
through concentration of Treasury investigators in areas of major violations.

BUREAU OF NARCOTICS
Commissioner H. J. Anslinger,’of the Bureau of Narcotics, reported
that a survey disclosed the maximum number of non-medical drug addicts

-

2

-

' >'

«

probably does not exceed 50,000.
“One of the most encouraging developments during the year is shown
in the results of a survey conducted by the Bureau of Narcotics which in­
dicates that addiction to narcotic drugs in this country is declining and
that the ratio of addiction which was formerly considered to be one in
every 1,000 of the general population is now probably not greater than
approximately one in every 3,000,” Mr. Anslinger said.
A narcotic drug snuggling conspiracy of world-wide ramifications
was crushed by the Bureau of Narcotics in collaboration with the Bureau
of Customs.

This resulted in the indictment of 30 persons, members of a

ring.headed by Jasha Katzenberg, Joseph Lvovsky and Louis Buchalter, alias
Lepke, of New York«

The smugglers obtained their narcotics in the Japanese

concession in Tientsin, China, smuggling into the United States in approxi­
mately a year sufficient drugs to supply the needs of 10,000 addicts for
that period, or about one-fifth of all drug addicts in the country.
”This case was a forceful demonstration of the absence of control
over illicit narcotic drugs in the Japanese dominated areas in China,” Mr,
Anslinger said.
Another case of interest involved a nation-wide narcotic distri­
buting ring composed of Chinese who were members of the Hip Sing Tong.
Twenty-four individuals were involved, including Yee Hain, who at the tine
of the commission of tho offense charged was national president of the Tong.
In this case arrests were made in Los Angeles, Butte, Montana, Chicago,
Pittsburgh and New York.

Most of tho defendants already have been prosecuted

successfully and many have been sentenced to long prison terms.
The year was marked by aggressive Federal attacks against the
marihuana evil, in which the Government had excellent cooperation from

3

state end local authorities.

The illicit traffic in marihuana "became a

Federal offense October 1, 1937.
hemp or hashish —

-

Hundreds of acres of the weed — .Indian

were destroyed by the Bureau during the year.

Marihuana

is an insidious narcotic used chiefly in the form of cigarettes.
During the yean the Bureau of Narcotics seized 9,561 ounces of drugs
as compared with 21,418 ounces the preceding year.

Arrests numbered 3,206

for the 1938 fiscal year compared with 3,469 in the 1937 fiscal year, and
by districts were as follows!
District

Fiscal year 1937

Boston
New York
Philadelphia
Baltimore
Atlanta
Nashville
Detroit
Chicago
San Antonio
Kansas City
Minneapolis
Denver
San Francisco
Seattle
Honolulu

121
502
210
150
173
232
221
412
590
281
59
50
272
100
96

Fiscal year 1938
77
681
162
113
81
193
199
378
496
223
57
50
337
78
81

Convictions among persons unregistered for legitimate distribution
of narcotics numbered 3,436 during the 1938 fiscal year as compared with
3,518 the year before.

For registered distributors convictions for the

1938 fiscal year were 593 as compared with 1,067 in the 1937 fiscal year.
The reduction in convictions reflected the gradual improvement in observation
of the Harrison

Act, a condition noted during the last few years. ' In 1938,

84 persons were acquitted for violation of the narcotic laws as compared
with 121 the year before.

Federal courts for 1938 imposed sentence of 5,822

years and fines of $167,309 compared with 5,380 years and $200,101 in fines
the previous year.
Reports from other Treasury law enforcement agencies were as follows:

- .4
ALCOHOL LAX UNIT
Reflecting the general decline of the illicit liquor traffic, there
was noted a decrease in the activity of non-tax paid liquor violators during
the 1938 fiscal year.

In 1938, 25,884 persons were arrested for violation

of the Federal liquor laws against 29,477 for the year before, according to
the report of Stewart Berkshire, Deputy Commissioner of Internal Revenue.
During the 1935 and 1936 fiscal years the large seizures of mash,,
the recognized criterion of illicit distilling operations, were made in
the north and middle west.

In the 1937 and 1938 fiscal years there was a

shift of mash seizures to the southern states, a territory of essentially
the base of operation of the small violator of the liquor laws.
Other Alcohol Tax Unit statistics follow:
Seizures and arrests
Stills seized
Distilled spirits seized (gallons)
Mash seized (gallons)
Automobiles seized
Trucks seized
Value of property seized

Fiscal year ended June 30
1937
1938
16,142
476,521
12,365,224
3,973
490
$3,965,360

11,407
305,243
7,555,023
3,728
496
$2,701,169

9,437

7,141

32,123
19,632
8,561
293
$410

27,892
17,810
7,664
306
$352

Prosecutions
Defendants pending Grand Jury action
June 30
Defendants recommended for prosecution
Defendants convicted
Defendants pending Trial action June 30
Average sentence to be served (days)
Average fine to be paid

BUREAU OF CUSTOMS
Customs Commissioner James H. Moyle reported to Secretary Morgenthau
that the law enforcement activities for the 1938 fiscal year were devoted in
large measure to operations against the illicit traffic in narcotic drugs#

5

’’Acting independently or in cooperation with the Bureau of Narcotics»
a number of highly important seizures of drugs were made,’’ Mr. Moyle said.
’’The year, generally speaking, was considerably more active than in the
fiscal year 1937.

All branches of the Customs Service were instructed that

it was the Secretary’s express wish that they concentrate on the suppression
of smuggling of narcotics.

Results were most gratifying.

On the Pacific

Coast, because of intensified enforcement measures, an acute shortage of
narcotic drugs was encountered and prices in the illicit traffic more than
doubled.

Elsewhere in the United States, sharp rises in the prices of nar­

cotics were indicative of a scarcity of these drugs.”
Mr. Moyle’s report showed that illicit drugs continued to be intro­
duced into the Port of New York and vicinity in considerable quantities.
There was evidence that they were being transported overland from New York
to various inland cities.

The prices in New York for narcotics remained

faifcly constant, varied by occasional fluctuations resulting from large
seizures.
The largest seizures of narcotics were made by the Bureau of Customs
in New York in August and September of 1937, a total of about 63 pounds of
opium and heroin having been confiscated.
539 ounces of smoking opium were seized.

At San Francisco in April, 1938,
In both cases arrests were made

and offenders received. Federal Court sentences ranging from one to fifteen
years.

Three Chinese involved in the San Francisco seizure were sentenced

to prison at Shanghai.
In another case of international importance involving the notorious
Louis T. F. Lyon, Paris restaurant owner, and Carlos Fernandez Bacula, former
Peruvian diplomat, both of whom are under arrest in Europe for narcotic vio­
lations, the Bureau of Customs arrested Jacob N. Gottlieb in New York for

attempted heroin smuggling.

G-ottlieb committed sulci do in the Albany county

jail after a confession which involved an international dope smuggling ring*
The Gottlieb confession was of importance in crushing this drug conspiracy*
Following seizures of narcotics and arrests of violators at Nogales,
Arizona, in August, the attention of the Mexican Government was brought to
the smuggling situation.

As a result of cooperation between the Mexican

and American authorities energetic measures have been taken to suppress the
cultivation of opium poppies in Mexico.

SECRET SERVICE
Chief Frank J. Wilson, of the United States Secret Service, reported
that counterfeit notes aggregating $619,290 wore seized during the 1938
fiscal year as compared with $654,787 in the 1937 fiscal year.

Counterfeit

coins in the amount of $54,423 were confiscated by the Secret Service in 1938
against $67,393 in the former year.

Secret Service Agents arrested 2»963

persons on charges of counterfeiting* forgery and other miscellaneous offences
during the year.

In 1937, 2,600 persons were apprehended by this law en­

forcement branch.
The amount of losses to the public through counterfeit notes surren­
dered to the Secret Service by banks and innocent takers decreased from
$487,643 in 1937 to $403,843 in the fiscal year 1938.
Under the direction of Chief Wilson an energetic educational campaign
was inaugurated to protect banks, business men and the public generally
against operations of counterfeiters.

Attention was drawn to the necessity

for the careful inspection of money so that spurious bills might be easily
detected and resultant losses reduced.

Talks were made by Secret Service

experts in fifteen states before state banking associations, while in New
York the matter of detection of counterfeiting was discussed with businessmen

-

7

Of the cases brought to trial as a result of Secret Service oper­
ations, 2*314 resulted in convictions while 821 are awaiting action of the
courts.

The percentage of convictions in cases tried was 96 percent.

. IlimLIGEHCE UNI®
Sixty-eight persons were convicted in the Federal Courts during the
1938 fiscal year for tax evasion and during the same period taxes and penal­
ties aggregating $26,106,013 were recommended for assessment.

In the 1937

fiscal year sixty-six persons v/ere arrested and $31,555,494 in taxes and
penalties were recommended for assessment.
In addition to the collection of taxes, penalties and interest,
substantial revenue accrued to the Treasury by the way of fines imposed in
criminal cases.

In some jurisdictions, the courts imposed additional penalty

by requiring the defendants to pay the costs of investigations, including
the salaries and expenses of agents conducting the inquiries.

COAST G-UABD
Following the cooperative plan inaugurated by Secretary Morgenthau,
the Coast Guard acted not only with the various agencies of the Treasury,
principally the Bureau of Customs and the Alcohol Tax Unit, but with the
Commerce Departments Bureau of Navigation during the year in the enforcement
of a wide range of Federal laws.

Due to these activities there was increased

enforcement activity in relation to narcotic snuggling, the seizure of moon­
shine stills and liquors and enforcement of the navigation laws.

More than

4,000 ships were trailed by Coast Guard craft in connection with the sup­
pression of drug snuggling.

Coast Guard aircraft rendered important aid in

the location of illicit whiskey stills and cooperated with the Customs
Service in patrol work along the borders.

8
,

The report of Rear Admiral R, R. Waesche, Commandant of the Coast

Guard, showed that during the 1938 fiscal year liquor smuggling from the
high seas, virtually had disappeared.

From time to time during the year

a number of foreign vessels were placed under surveillance.

They wore

principally in the alcohol smuggling business but it was believed that

V

comparatively little illicit liquor was landed*

640 arrests were made, 394 stills and ccmisiiie^

••liquor, narcotics.and- other'' merchandlse seized

/

of illicit
\

\

V

\

\

•/
/

f

/

18« 1938

July

Frank J* Wilson,^of tbs United
today

announced the following personnel

States

from the position Crjj

supervising

agent Hat Newark^ to the position of supervising
Q s& A j. X
M
'
York'
He succeeds
William H. Houghton*

New

' Fred

W*

in charge

Gruber

of

agent

to

acting supervising
Frank

agent

in charge

has

been transferred

th C fi

at
agent

with district

L* Holliday has

from

AM/

agent

the position

EffisffiBÉÉac Pittsburgh sub-district
headquarters

been transferred

at

Service,

changes*

r* Maloney has^ Ib^n^transferred
J<

James

Secret

Cincinnati

at

Newark,

from the position

N*J*
of

to the position of agent in

charge

of the Cleveland district, replaotimg
agent in charge John J* Mo Grath *
'/’V V
JutarJ*. McGrath has been transferred from the position of agent
^
ru
in charge
at Cleveland to acting
agent in ohage

H&üd

in New York

City«

Mr* BAughton,
is undergoing

a

minor

retiring

supervising

surgical operation and 4m on leave

\
1,

when he will be

agent

given
-o-

another

assignment*

at New York City,
until September

TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Monday, July 18, 1938.

Press Service
No. 14-4

Prank J. Wilson, Chief of the United States Secret Service,
today announced the following personnel changes:
James J. Maloney has "been transferred from the position of
Supervising Agent of the Secret Service at Newark, New Jersey, to
the position of Supervising Agent in the New York area.

Ho succeeds

William H. Houghton.
Mr* Houghton, retiring Supervising Agent at New York City,
is undergoing a minor surgical operation and will he on leave until
September 1, when he will he given another assignment.
Pred W. Gruber has been transferred from the position of
Agent in Charge at the Pittsburgh sub-district to Acting Supervising
Agent with district headquarters at Newark, New Jersey.
Prank L* Holliday has been transferred from the position of
Agent in Charge at Cincinnati to the position of Agent in Charge of
the Cleveland district, replacing Agent in Charge John J. McGrath.
Mr* McGrath has been transferred from the position of Agent
in Charge at Cleveland to Acting Agent in Charge at New York -City*

— oOo—

Vr
ÎRS4SÜRT DSPARTIOTT

MBUWQñKfR
Press Serviee
£

r m m m & m rsisask,
Monday» July IB» 1938«

Acting Secratary of the Treasury Magill today announced the final
subscription and allotment figures with respect to the current offering of
7/8 percent notes of Series H of the Reconstruction Finance Corporation*
Subscriptions and allotments were divided among; the several Federal
Reserve districts and the Treasury as follows :
Federal Reserve
District

Total Subscriptiens Received

Total Subscriptlons Allotted

Boston
lew Tort:
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Seci Francisco
Treasury
TOTAL

# 147,228,000
1,488,54S,000
129»060»000
158,236,000
77,680,000
64,865,000
279,529,000
51,383,000
18,561,000
39,357,000
40,195,000
181,934,000
200,000
#2,626,571,000

1 11,830,000
115,202,000
10,855,000
12,754,000
6,418,000
5,479,000
22,571,000
4,194,000
1,541,000
3,206,000
3,296,000
14,583,000
16t000
#211,450,000

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Monday, July 18, 1938.

Press Service
No. 14-5

Acting Secretary of the Treasury Magi11 today announced the final sub­
scription and allotment figures with respect to the current offering of ?/8
percent notes of Series N of the Reconstruction Finance Corporation.
Subscriptions and allotments were divided among the several Federal
Reserve districts and the Treasury as follows:
Federal Reserve
District

Total Subscriptions Received

Total Subscrip—
tions Allotted

Boston
Now York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury

$ 147,228,000
1,438,545,000
129.060.000
158.236.000
77.680.000
64.865.000
279.329.000
51.383.000
18.561.000
39.357.000
40.193.000
181.934.000

$ 11,835,000
115,202,000
10.355.000
12.754.000 '
6.418.000
5.479.000
22.571.000
4.194.000
1.541.000
3.206.000
3.296.000
14.583.000
16,000

TOTAL

2 0 0 ,0 0 0

$2,626,571,000

— oOo—

$211,450,000

m & S Ö H T BSPASmSST
Wà s h i n g t o n
FOU ïïMMàBM, m m u m NBIOTAPSRS,
.. .— ,

fm m

The Secretary of the Treasury announced loot evening that the
tenders for #100,000,000, or thereabouts, of 91-day Treasury bill«, to
bo dated July SO and to mature Getobe r 19, 1938, «feioh nere offered m
July 18, were opened at the federal Beeerre banka on July 18»
The detalla of this issue are as follonas
Total applied for
Total aeeepted

- #189,884,000
- 100,184,000

Bange of aeeepted bide:
High
Low
average price

- 99*994 Equivalent rate approximately 0*084 per
*
•
0*043
-99*984
*
«
*
0.054
- 99*984
«

<10 percent of the amount bid for at the low price was accepted)

TREASURY DEPARTMENT
Washington

FOR'RELEASE, MORNING NEWSPAPERS,
Tuesday, July 19, 1938.
7-18-38

Press Service
No. 14-6

The Secretary of the Treasury announced last evening that the tenders
for $.100,000,000, or thereaboutsj of 91-day Treasury bills, to be dated July
20 and to mature October 19, 1938, which were offered on July 15, were opened
at the Federal. Reserve banks on July 18.
The details of this issue are as follows:
Total applied for
Total accepted

- $187,824,000
- 100,124,000

Range of accepted bids:
High
Low
Average price

- 99.994 Equivalent rate approximately 0.024 percent
- 99.984
«
»
»
0.063
»
- 99.986
»
»
«
0.054
n

(10 percent of the amount bid for at the low price was accepted)

— oOo

"Investigation has disclosed that in most instances delinquent
retail dealers who failed to buy the special stamp had no wilful intent
to violate the law,” Mr. Mellott said.

"While ignorance of the law

is no excuse for non-compliance it has been the practice in this type of
cases to impose only nominal penalties.

When wilful intent is disclosed

however, such violations are punishable by severe penalties.
"Among dealers who have thus far failed to buy the special stamp,
but who in advance of inspection of their places, come forward and
voluntarily pay the tax the disposition will be to deal leniently with
regard to their former non-compliance if their violations have been shown
to be non-wilful."
Special inspection activity with regard to retail liquor dealers
by the use of picked squads of field officers of the Alcohol Tax Unit
cooperating with local police will be extended gradually to other cities.
By this method it is expected a great deal of additional revenue will be
collected and also that much can be done to promote better understanding
and compliance with the law by liquor dealers.

The plan is also expected

to aid materially in reducing tax evasions of different kinds in the
retail liquor business.

j

a

f > w

u

^>4, /d S f
7i

Inspection of retail liquor establishments in several leading
cities by special squads of the Alcohol Tax Unit have shown that the
largest number of revenue law violations have been due to failure to
pay the Federal occupational tax, Deputy Commissioner Arthur J. Mellott
of the Bureau of Internal Revenue announced today.
This type of violation was shown in the following percentages in
the more than 35,000 places of business covered by the special survey in
the various cities:

New York 9 per cent}

Philadelphia 8 per cent;

Chicago 5 per cent;

Washington 10 per cent and Milwaukee 3 per cent.

Additional revenue collected in taxes and penalties from various
kinds of violations among retail dealers, as a result of this special
inspection activity, exceeds #100,000.
occupational tax payments.

Most of this revenue has come from

This tax is paid

by

the purchase from

Collectors of Internal Revenue of a special $25 stamp by dealers selling
both distilled and malt liquors, while dealers selling only malt liquors
purchase a special $20 stamp.
A large increase in collections of the tax was noted particularly
in New York and Chicago where systematic check of liquor retailers was
begun more than two months ago and still continues.

In New York during

the first two months of the special inspection work — Febuary and March delinquent retailers paid the Government $34,236 in occupational tax and
penalties.
source.

This represented a 70 per cent increase in revenue from that
In Chicago delinquent dealers paid $20,530 in purchases of the

occupational stamp and in penalties in Febuaiy and March, an increase of
ten per cent over the preceding sixty day period.

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, July 21, 1938. _____
7720/38.

Press Service
No. 14— 7

The Secretary of the Treasury today made public the following memorandum,
addressed, to the President, which has had the President's approval:

»July 11, 1938.
MEMORANDUM FOR TEE PRESIDENT:
The Newly-Mined Domestic Silver Proclamation of December 30, 1937,
modifying the Proclamation of December 21, 1933, as modified, provides
that:
1* * * the said Proclamation of the twenty-first day of
December, 1933, as heretofore and hereby modified shall
remain in force and effect until the 31st day of December,
1938, unless repealed or further modified by Act of Congress
or by subsequent Pi'odonation. 1
As you know, in the normal course a considerable period of time elapses
between the date silver is mined and the date when the refining of the silver
has been completed and the silver is delivered to a Mint. Accordingly, a
question has arisen as to whether domestic silver mined prior to midnight,
December 31, 1938, nay be received by the mints after that date under said
Proclamation, as modified.
I am advised by the General Counsel of the Treasury that in his opinion
the mints nay continue after December 31, 1938, to receive under said Pro­
clamation, as modified, domestic silver mined prior to midnight, December
31, 1938, and otherwise complying with the Proclamation. I am in accord
with such opinion. Accordingly, if you approve, the mints will bo instructed
that they may continue after December 31, 1938, to accept under said Procla­
mation, as modified, newly-nined domestic silver mined prior to midnight of
December 31, 1938. This would be consistent with the action taken pursuant
to you£ approval given under date of September 14, 1937, when the same problem
was present'..'?, the basic proclamation as then modified being due to expire
on December 31, 1937.
If you approve fcf the foregoing, X should appreciate it if you would so
indicate below.
H. MORGENTHAU,JR.
Secretary of the Treasury
APPROVED:
FRANKLIN D. ROOSEVELT
The White House,
July 16, 1938.»
— oOo—

4

in order to provide greater convenience to taxpayers and to expedite
the closing of tax cases«
A similar division was established on the Pacific Coast on July 1,
with exclusive and final authority over Federal tax cases originating
in the States of Washington, Oregon, California, Idaho, Montana,
Nevada, Utah, and Arizona, and the Territories of Alaska and Hawaii*
A field division of the Technical Staff will also be opened at Chicago
on September 1, with jurisdiction over cases arising in the States of
Illinois, Indiana, and Wisconsin.

It is expected that similar divisions,

covering the remaining sections of the country, will be established
after January 1, 1939.

3

It will have full authority to review or reverse the findings of the
internal revenue agent in charge, and there will he no appeal to any
other agency or officer of the Treasury Department, either locally or
in Washington*

If a New York taxpayer is not satisfied with the final

determination of his case by the local office of the Technical Staff,
his only recourse will be an appeal to the Board of Tax Appeals and
the Courts#
The arrangement promises many advantages.

It will eliminate the

repetitious steps and protracted delays which it seems impossible to
avoid under the old plan of centralizing the settlement of tax dis­
putes in the Bureau of Internal Revenue at Washington.

It will permit

prompt action on all contested cases at a point near to the taxpayer
and to the sources of evidence regarding his transactions.

It will

provide an able and impartial administrative body to which the taxpayer
can have recourse in his own community should he wish to contest the
findings of the agency which examined his tax return in the first
instance. The plan is expected to result not only in greater con­
venience to taxpayers but also in quicker administrative decisions
and in fewer appeals from the Bureau of Internal Revenue to the Board
of Tax Appeals and the Courts.

It will be of special benefit to tax­

payers who are financially unable to employ counsel#
The establishment of the New York Division of the Technical Staff
is in furtherance of a plan developed by Commissioner of Internal
Revenue Guy T. Helvering, at the instance of Secretary of the Treasury
Morgenthau, for a general decentralization of Federal tax administration,

2

Appeals, there being at the present time some 1,500 New York cases
accumulated on the Board’s docket, involving many millions of dollars
of disputed tax. The plan will be to set the bulk of these accumulated
cases for hearing before the Board at New York City during the fall
and early winter, with a view to bringing the Board’s New York docket
current by January 1, 1939. The immediate function of the new Staff
Division will be to defend the Government’s interests in the trial of
these cases before the Board of Tax Appeals and, when the facts
warrant, to negotiate settlements with the taxpayers without trial
before the Board.
On January 1, 1939, in addition to its function of representing
the Government in cases docketed before the Board of Tax Appeals, the
New York Division of the Technical Staff will have authority, upon
appeal by the taxpayer, to review the determination of tax liability
made in any case by the local internal revenue agents*
Under this arrangement, the examination of tax returns will be
made by the internal revenue agents, as at the present time. Their
reports will be reviewed and discussed with taxpayers in the office
of the internal revenue agent in charge in accordance with the present
procedure. But if the agents* findings are finally protested by the
taxpayer, the case will no longer be sent to Washington for review
and conference in the Bureau of Internal Revenue, but will be referred
to the New York office of the Technical Staff. The local office of
the Technical Staff will grant a hearing to the taxpayer, consider
his contentions, and make final determination of his tax liability.

A division of the Technical Staff of the Office of the Commis­
sioner of Internal Revenue will be established at New York City on
August 1. Its offices will be located on the 9th floor of the new
Federal Office Building, at 90 Church Street. This agency will have
final authority to settle, for the Commissioner of Internal Revenue,
all contested Federal income! and estate^fcax cases arising in New
York City and elsewhere in the State of New York, which originates
about a fourth of the entire volume of the Federal receipts from
these sources.
The personnel of the New York Division of the Technical Staff
is being provided by transferring from the Bureau of Internal Revenue
at Washington a group of the most experienced and competent technicians
now on the Bureau’s rolls— attorneys, accountants, auditors, engineers,
valuation experts, and specialists in various lines of Federal tax ad­
ministration.

Including clerical employees, the total force will

number more than 100 persons. The Division will be in charge of
Timothy C. Mooney, who, prior to this assignment, was chief of the
conference division of the Income Tax Unit of the Bureau, and who
has a record of more than 18 years in the Federal internal revenue
service. Eldon 0. Hanson, who for a number of years has served as
special assistant to the Chief Counsel of the Bureau of Internal
Revenue, will be in charge of the legal staff attached to the new
agency.
Until January 1, next, the Division will concern itself primarily
with cases which have been appealed to the United States Board of Tax

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 22, 1938.
7-21-38

Press Service
No. 14-8

A division of the Technical Staff of the Office of the Commissioner
of Internal Revenue will he established at New York City on August 1*

Its

offices will he located on the 9th floor of the new Federal Office Building,
at 90 Church Street.

This agency will have final authority to settle, for

the Commissioner of Internal Revenue, all contested Federal income and
estate tax cases arising in New York City and elsewhere in the State of New
York, which originates about a fourth of the entire volume of the Federal
receipts from these sources.
The personnel of the New York Division of the Technical Staff is
being provided by transferring from the Bureau of Internal Revenue at
Washington a group of the most experienced and competent technicians now on
the Bureau*s rolls —

attorneys, accountants, auditors, engineers, valuation

experts, and specialists in various lines of Federal tax administration.
Including clerical enployees, the total force will number more than 100
persons.

The Division will be in charge of Timothy C. Mooney, who, prior to

this assignment, was chief of the conference division of the Income Tax Unit
of the Bureau, and who has a record of more than 18 years in the Federal
internal revenue service.

Eldon 0. Hanson, who for a number of years has

served as special assistant to the Chief Counsel of the Bureau of Internal
Revenue, will be in charge of the legal staff attached to the new agency.
Until January 1, next, the Division will concern itself primarily with
cases v/hich have been appealed to the United States Board of Tax Appeals,
there being at the present time some 1,500 New York cases accumulated on the
Board*s docket, involving many millions of dollars of disputed tax.

The

o _

plan will "bo to sot the "bulk of these accumulated cases for hearing before
the Board at New York City during the fall and early winter, with a view to
"bringing the Board*s New York docket current "by January 1, 1939.

The

immediate function of the new Staff Division will "bo to defend the Government*s interests in the trial of these cases before the Board of Tax Appeals
and, when the facts warrant, to negotiate settlements with the taxpayers
without trial before the Board.
On January 1, 1939, in addition to its function of representing the
Government in cases docketed before the Board of Tax Appeals, the New York
Division of the Technical Staff will have authority, upon appeal by the tax­
payer, to review the determination of tax liability made in any case by the
local internal revenue agents.
Under this arrangement, the examination of tax returns will be made
by the internal revenue agents, as at the present tine.

Their reports will

be reviewed and discussed with taxpayers in the office of the internal revenue
agent in charge in accordance with the present procedure.

But if the agents*

findings are finally pretested by the taxpayer, the case will no longer be
sent to Washington for review and conference in the Bureau of Internal Revenue,
but will be referred to the New York office of the Technical Staff.

The local

office of the Technical Staff will grant a hearing to the taxpayer, consider
his contentions, and make final determination of his tax liability.

It will

have full authority to review or reverse the findings of the internal revenue
agent in charge, and there Yd 11 be no appeal to any other agency or officer
of the Treasury Department, either locally or in Washington.

If a New York

taxpayer is not satisfied with the final determination of his case by the
local office of the Technical Staff, his only recourse will be an appeal to
the Board of Tax Appeals and the Courts.

- 3 -

The arrangement promises many advantages.

It will eliminate the repeti­

tions steps and protracted delays which it seems- impossible to avoid under the
old plan of centralizing the settlement of tax disputes in the Bureau of
Internal Revenue at Washington.

It will permit prompt action on all contested

cases at a point.near to the taxpayer and to the sources of evidence regarding
his transactions*

It will provide an able and impartial administrative body

to which the taxpayer can have recourse in his own community should he wish
to contest the findings of the agency which examined his tax return in:-the
first instance.

The plan is expected to result not only in greater con­

venience to taxpayers but also in quicker administrative decisions and in
fewer appeals from the Bureau of Internal Revenue to the Board of Tax Appeals
and the Courts*

It will be of special benefit to taxpayers who are finan­

cially unable to employ counsel*
The establishnent of the New York Division of the Technical Staff is
in furtherance of a plan developed by Commissioner of Internal Revenue Guy T*
Helvering, at the instance of Secretary of the Treasury Morgenthau, for a
general decentralization of Federal tax adr*ini strati on, in order to provide
greater convenience to taxpayers and to expedite the closing of tax cases.
A similar division was established on the Pacific Coast on July 1,
with exclusive and final authority over Federal tax cases originating in tho
States of Washington, Oregon, California, Idaho, Montana, Nevada, Utah, and
Arizona, and the Ten-itories of Alaska and Hawaii.

A field division of the

Technical Staff will also be opened at Chicago on September 1, with juris­
diction over cases arising in the States of Illinois, Indiana, and Wisconsin*
It is expected that similar divisions, covering the remaining sections of the
country, will be established after January 1, 1939.
— oOo—

s'^ OnF F IC E OF
D IRECTOR O F THE MINT
IN REPLYING QUOTE INITIALS

Treasury Gold Receipts!/ (Net)
(in millions of dollars)
April-June
1938
Newly mined domestic - - - - - - - - - - - - -

$40.42

Imports - - - - - - - - - - - - - - - - - - -

124.59

Miscellaneous (Secondary and other) - - - - -

3.54

Total - - - - - - - - - - - - - - -

168.55

Silver Receipts by United States Mints and Assay Offices
(Thousands of fine ounces)

Newly Mined domestic silver
(Executive Proclamation
December 21, 1933) - - - - - - -

(Quarter
April-June
1938

Aggregate
to June 30
1938

15,480.8

219,951.2

1.5

113,032.9

Nationalized silver (Executive
Proclamation August 9, 1934) - Purchase Act silver (Act June
19,1934)----- ------ --------

if

72,620.5 1,353,053.6

Figures on basis of $35 per fine ounce.

TREASURY BEPARTMENT
Washington

Press Service
No. 14-9

3?0R IMMEDIATE RELEASE,
Thursday, July 21, 1938.

Treasury Gold Receipts i/ (Not)
(in millions of dollars)
April-June
1938
Newly mined domestic - - - - - - - - - - - - - -

$40.42

Imports - - - —

124.59

- - - - - - -

- - - - - - - -

Miscellaneous (Secondary and other)

*—

- - - -

T o t a l ------------------- ------------

Silver Receipts hy United States Mints and

3.54
168.55

Assay Offices

(Thousands of fine ounces)
Quarter
April
June
1938

Aggregate
to June 30,
1938

Newly Mined domestic silver
(Executive Proclamation
December 21, 1933) ------ > -- -

15,480.8

219,951.2

Nationalized silver (Executive
Proclamation August 9, 1934) - -

1.5

113,032.9

Purchase Act silver (Act June
19, 1934)------------------- -

72,620.5

1,353,053.6

1/ Figures on basis of $35 per fine ounce.

— oOc—

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE/
Saturday, July 23, 1938.

'

Press Service
No. 14-10

The United States Coast Guard today ended the ice patrol
in the trans-Atlantic steamship lanes.
The Coast Guard Cutters PONCHARTRAIN and TAHOE engaged in
this duty since February 10, today were returning from sea to their
regular stations - the PONCHARTRAIN to New York, and the TAHOE to
Boston.
The patrol which has beep.maintained each season since 1913
when the TITANIC was sunk by an iceberg has served as an effective
protection against iceberg dangers.

In those years not a single

ship casualty has occurred from icebergs.
Rear Admiral Russell R. Waesche, Commandant of the Coast
Guard, announced that the Coast Guard Cutter GENERAL GREENE now
will be assigned to make the usual post-season cruise off Newfoundland
and Labrador, extending for a period of from six to eight weeks,
conducting scientific studies concerning icebergs in those waters.

Washington, D.C.
Ju ly 2 3 , 1938.

^YW\y>jL&JLeJjL

/V '//
MTHMORL MDUIL TO -flWTICTPt-—

Irv in g A. Lichtenberg, 3005 Ordway S t . , N.W., oaid- to -fee
a member o f the b a r, D is t r ic t o f Columbia, was a rrested in Wash­
in gton , D .C 7^ J'tily 2 2 ;~ i93fl> by agents o f the U.S. S e c re t S erv ice
fo r forging anci u tte rin g a Government check in amount o f $2600
payable to Gerardo Marzullo and Antonia M arzullo, a lso known as
Andonia
Lichtenberg acted as agent f or the payees in a cbndemnatio n proceedings in s titu te d by th e Federal Government. The check
was issued on an au th o rization from th e N ational C ap ital Park and
Planning Commission and was turned over by th a t agency to Columbia
Trust St T it le C o., the l a t t e r p resen tin g i t to Lichtenberg.
On Ju ly 1 9 , 1938, Lichtenberg forged the names o f the payees
and presented th e check to the A nacostia Bank, A nacostia, D .C .,
where he was unknown, and opened a new account by depositing the
check. On Ju ly 2 0 , 1938, Lichtenberg withdrew about $1900 again st
t h is account and l e f t f o r New *ork C ity v ia p lan e. On Ju ly 2 2 ,
1938, Lichtenberg returned t o Washington and sh o rtly th e r e a fte r
he was taken in to custody and v o lu n ta rily signed a statement admit­
tin g frau d u len tly n eg o tia tin g the above check. He w i ll be given a
hearing before U.S. Commissioner N.C. Tumage today.

.Allen,"Agent -iti-Gha-rge

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Saturday, July 23, 1938.

Pross Service
No. 14-11

Irving A. Lichtenberg, 3005 Ordway Street, N.W., member of the bar,
District of Columbia, was arrested in Washington, D.C.

last night by agents

of the United States Secret Service for forging and uttering a Government
check in amount of $2,600 payable to Gerardo Marzullo and Antonia Marzullo,
also known as Andonia Marzullo» Washington produce merchants.
Lichtenberg acted as agent for the payees in a condemnation proceed­
ings instituted by the Federal Government.

The check was issued on an

authorization from the National Capital Park and Planning Commission and
was turned over by that agency t6 Columbia Trust and Title Company, the
latter presenting it to Lichtenberg.
On July 19, 1938, Lichtenberg forged the names of the payees and
presented the check to the Anacostia Bank, Anacostia, D. C., where he was
unknown, and opened a new account by depositing the check.

On July 20,1938,

Lichtenberg withdrew about $1,900 against this account and loft for New York
City via plane.

On July 22, 1938, Lichtenberg returned to Washington and

shortly thereafter he was taken into custody and voluntarily signed a
statement admitting fraudulently negotiating the above check.

He will be

given a hearing before United States Commissioner N. C. Tumage today.

— oOo—

tRSASUHT WSPkWmmf
wBm m m n

fot msutABMt m m tm wmzxmm

Press Servios

?tt»»dar. fl&y &9. lose._______

(MHMIInilMMMWMIMMlBÉMMIlMMHMiWHaWMi

7/25/58

¡ 4fr i ^

fba Secretary of the Treasury anaouneed laat evening that tbe
tenders for #100,000,000, or theraabouts, of 91-day freaeury bilis, te be
datad Jbly £7 and te sature Oetober 8$, 1958, «bieb «ere offered oa July 22,
«ere apenad at tbe Federal lasen* ba&ke ©a Jtoly 89»
fbe detalle g$ M i
total applled for
total aeeaptad

lesee are as falle««i
* #884,958,000
* 100,284,000

langa ef aeeaptad bidés

Higb
Le»
Average prisa

- 99*994 Squivalent rata approximataly 0.084 psn
* 99.981
*
*
*
0*075 *
- 99*985
*
*
«
0.059
*

(81 peroent of tha amonal bld for at tba lo« prisa «as aeeaptad)

TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING NEWSPAPERS,
Tuesday, July 26, 1938.
7-25-38
’

Press Service
No. 14 - 12

The Secretary of the Treasury announced last evening that the tenders
for $100»000,000, or thereabouts* of 91-day Treasury hills, to he dated July
27 and to mature October 26, 1938, which were offered on July 22, were
opened at the Federal Reserve hanks on July 25.
The details of this issue are as follows:
Total applied for
Total accepted

- $264,955,000
- 100,224,000

Range of accepted bids:
High
Low
Average price

- 99.994 Equivalent rate approximately 0.024 percent
11
»
11
- 99.981
0.075
»
It
II
H
0.059
»
- 99.985

(21 percent of the amount hid for at the low price was accepted)

-3After a year at London, where he inaugurated medical
inspection of aliens departing for the United States, he was assigned
to duty at the U* S* Marine Hospital, Hudson Street, in Hew York,
and made Medical Officer in Charge in July, 1927* He remained there
seven years, was promoted to Senior Surgeon in 1934-• His assign­
ment to the Compensation Commission came in May, 1935#

-

2-

which position he occupied until 1931 when he was assigned to assist
the State Department of Health in the study and investigation of
health problems in Virginia* He was relieved of this work in 1934and assigned to the Washington office in personnel and accounts*
Author of more than a score of articles in connection
with his health studies, Dr* Draper has been active in organizational
work related to his regular duties. While serving as Assistant
Surgeon General, he represented the Service in the House of Dele­
gates of the American Medical Association, with the American Public
Health Association, and in advisory capacities to other national,
health groups•
Commissioned Assistant Surgeon in the Public Health Service
in 1914-> Dr. Stewart was first stationed at the XT* S. Marine Hospital
Baltimore, then assigned to duties at Ellis Island* The next three
years were spent in studying rural sanitation in South Carolina,
Tennessee, Missouri? work in connection with the great outbreak of
infantile paralysis in 1916 in New York; and with pellagra in South
Carolina*
After serving as investigator during influenza epidemics
during the War, Dr* Stewart was ordered as Executive Officer in
1919 to the Marine Hospital at Staten Island, New York.
1923 he was sent to Italy for quarantine duties.

Early in

The following

year he represented this country at the International Medical Con­
gress at Seville, Spain.

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

3

FOR RELEASE
1 7

h

i g

Assistant Surgeon General Warren F. Draper, recent chief
of the Division of Personnel and Accounts, has been appointed first
incumbent of the newly created position of Executive Officer of
the U. S. Public Health Service*

His successor to the former office

is Senior Surgeon Paul M* Stewart, for the past three years Medical
Director of the U* S* Employees Compensation Commission.
Immediately after his graduation from Harvard Medical School
in 1910, Dr* Draper entered the U* S. Public Health Service as
Assistant Surgeon, and was detailed to the San Francisco Quarantine
Station at Angel Island* There followed five years of activities
and research in Alaskan waters, at the Boston Marine Hospital, and
in Potomac river pollution studies before he was detailed to the
Office of Public Roads*

In this capacity he gathered data as to

sanitary conditions in convict road camps and among their convicts*
As Medical Officer in Virginia and several of the New
England states, he developed health organizations and conducted
relief^ and sanitation activities^ especially during influenza
outbreaks, among army cantonment areas and in the larger cities of
Pennsylvania and Massachusetts•
In September 1922, Dr* Draper was detailed as Assistant
Surgeon General in Charge of the Division of Domestic Quarantine,

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

POR RELEASE, MORNING NEWSPAPERS,
Wednesday, July 27, 1938.______
7-26-38

Press Service
No. 14-13

Assistant Surgeon General Warren F. Draper, recent chief of the Division
of Personnel and Accounts, has been appointed first incumbent of the newly
created position of Executive Officer of the U. S. Public Health Service.

His

successor to the former office is Senior Surgeon Paul M. Stewart, for the
past three years Medical Director of the U. S. Employees Compensation Commission.
Immediately after his graduation from Harvard Medical School in 1910,
Dr. Draper entered the U. S. Public Health Service as Assistant Surgeon, and
was detailed to the San Francisco Quarantine Station at Angel Island.

There

followed five years of activities and research in Alaskan waters, at the Boston
Marine Hospital, and in Potomac river pollution studies before he was detailed
to the Office of Public Roads.

In this capacity he gathered data as to sani­

tary conditions in convict road camps and among their convicts.
As Medical Officer in Virginia and several of the New England sto/tes,
he developed health organizations and conducted relief and sanitation activi­
ties, especially during influenza outbreaks, among army cantonment areas and
in the larger cities of Pennsylvania and Massachusetts.
In September 1922, Dr. Draper was detailed as Assistant Surgeon General
in Charge of the Division of Domestic Quarantine, which position he occupied
until 1931 when he was assigned to assist the State Department of Health in
the study and investigation of health problems in Virginia.

He was relieved

of this work in 1934 and assigned to the Washington office in personnel and
accounts.
Author of more than a score of articles in connection with his health
studies, Dr. Draper has been active in organizational work ¡related to his

- 2 -

regular duties«

While serving as Assistant Surgeon General» ho represented the

Service in the House of Delegates of the American Medical Association, with the
American Public Health Association, and in advisory capacities to other national
health groups.
Commissioned Assistant Surgeon in'the Public Health Service in 1914,
Dr. Stewart was first stationed at the U. S. Marine Hospital, Baltimore, then
assigned to duties at Ellis Island*

The next three years were spent in studying

rural sanitation in South Carolina, Tennessee, Missouri; work in connection with
the great outbreak of infantile paralysis in 1916 in Hew York; and with pellagra
in South Carolina.
After serving as investigator during influenza epidemics during the War,
Dr. Dtcwart was ordered as Executive Officer in 1919 to the Marine Hospital at
Staten Island, How York.
duties*

Early in 1923 he was sent to Italy for quarantine

The following year he represented this country at the International

Medical Congress at Seville, Spain.
After a year at London, where ho inaugurated medical inspection of aliens
departing for the United States, he was assigned to duty at the U. S* Marine
Hospital, Hudson Street, in Hew York, and made Medical Officer in Charge in
July, 1927*
1934*

He remained there seven years, was promoted to Senior Surgeon in

His assignment to the Compensation Commission came in May, 1935*

— oOo—

-3 -

engaged in research upon mental hygiene and its relation to
migrating peoples, and conducted studies with reference to the
insane and chronic alcoholism.
From 1925-28, he was stationed at Queenstown and Dublin,
Ireland, and at London, England, as Medical Advisor to the American
Consulate. At the latter station he carried on special studies
at the National Hospital for Nervous Diseases and Epilepsy.
In 1929 he was made Chief of the then newly created
Narcotics Division of tfcie Public Health Service. A year later,
this office became the present Division of Mental Hygiene.

-0 OO0-

J r -

-

2-

The next three years were spent abroad#

Station ed a t

Dublin, I r i s h Free S t a t e , he traveled widely on the con tin en t
making stu d ies o f 3 ,0 0 0 cases in s i x cou n tries o f the in te llig e n c e
o f those who applied fo r v is a s fo r en try in to the United States#
He returned to Washington in the summer o f 1931 to pre­
pare h is stu d ies fo r p u b lica tio n but continued a lso as f i e l d
con su ltan t in mental hygiene fo r the P u blic Health Service#
O rig in a lly o f G a le s v ille , Maryland, Dr# Kolb was graduated
from the U n iversity o f Maryland School o f Medicine in 1908#

He

was commissioned from th a t S ta te as a s s is t a n t surgeon in the P u blic
Health S erv ice the follow ing y e a r.

He was promoted to the p o sitio n

o f passed a s s is ta n t surgeon in 1913> surgeon in 1921, sen io r surgeon
in 1930, and to medical d ir e c to r in 1935*
Dr. Treadway, who had been head o f the Mental Hygiene
D iv ision sin ce 1930, was sta tio n ed a t E l l i s Isla n d and a t Ward1s
Isla n d , e a rly in h is ca reer up to 1915*

His next th ree years were

given over to f i e l d in v e stig a tio n s devoted e s p e c ia lly to the study
o f prevalence and needscf m entally d e fectiv e and dependent ch ild ren ,
o f the r e la tio n o f mental d isord ers to crim e, and o f c o rre c tio n a l
in s titu tio n s and systems throughout the country#
Between 1918-25, he served as C hief o f the S e ctio n o f
Neuropsychiatry in the Veterans Bureau and o f the U. S# P ublic
Health S erv ice H ospital D iv ision in Washington, D. C *, and as
Medical O ffic e r in Charge o f F ie ld Stu dies and In v e stig a tio n s o f
Mental Hygiene a t Boston, Massachusetts#

While h ere , Dr# Treadway

\

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
1
/
i
FOR RELEASE

Dr. Lawrence Kolb, form erly c h ie f o f the U. S . P u blic Health
Serv ice h o sp ita l a t Lexington, Kentucky, has been appointed a s s is ta n t
surgeon general in charge o f the D iv ision o f Mental Hygiene, U. S .
P u blic Health S e r v ic e .

He succeeds Dr. W alter L. Treadway, who i s

now serving as medical o f f i c e r in charge o f the Lexington h o s p ita l.
Both appointments are in the lin e o f rou tin e changes o f s t a t io n .
Already in te r n a tio n a lly known as author and a u th o rity in
the f ie ld s of p sy ch iatry , n a r c o tic s , and m en tality o f a lie n s as r e ­
la te d to immigration, Dr. Kolb was appointed to head the Governments
f i r s t experim ental u n it fo r treatm ent o f drug a d d icts in August o f
1934-•

He had previou sly been superintendent o f the U. S . H ospital

fo r D efective Delinquents a t S p rin g fie ld , M issouri, fo r two y e a rs.
•

For s ix y e a rs, beginning in 1913, Dr. Kolb was statio n ed a t

the E l l i s Islan d Immigration S ta tio n , where he sp e cia liz e d in
mental and nervous d iseases o f incoming a lie n s .

Between 1919-23,

he organized and conducted the U. S . P u blic Health Serv ice h o sp ita l
fo r the treatm ent o f nervous p a tie n ts a t Waukesha, W isconsin.
Then followed a fiv e -y e a r period o f research a t the N ational
I n s t it u t e o f H ealth, in Washington, D. C ., in to the prevalence end
epidemiology o f drug-addiction and i t s r e la tio n to crim ej p erso n a lity ,
in t e llig e n c e , and general c h a r a c te r is tic s o f a d d ic ts ; and methods of
treatm ent

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

FOR RELEASE, AFTERNOON NEWSPAPERS,
Wednesday, July 27, 1938.
7-26-38

Press Service
No. 14-14

Dr. Lawrence Kolb, formerly chief of the U. S. Public Health Service
hospital at Lexington, Kentucky, has been appointed assistant surgeon general
in charge of the Division of Mental Hygiene, U. S. Public Health Service. He
succeeds Dr. Walter L. Treadway, who is now1 serving as medical officer in
charge of the Lexington hospital.

Both appointments are in the line of routine

changes of station.
Already internationally known as author and authority in the fields of
psychiatry, narcotics, and mentality of aliens as related to immigration,
Dr. Kolb was appointed to head the Governments first experimental unit for
treatment of drug addicts in August of 1934.

He had previously been superin­

tendent of the U. S. Hospital for Defective Delinquents at Springfield,
Missouri, for two years.
For six years, beginning in 1913, Dr. Kolb was stationed at the Ellis
Island Immigration Station, where he specialised in mental and nervous dis­
eases of incoming aliens.

Between 1919-23, ho organized and conducted the

U. S. Public Health Service hospital for the treatment of nervous patients at
Waukesha, Wisconsin.

Then followed a five-year period of research at the

National Institute of Health, in Washington, D.C., into the prevalence and
epidemiology of drug-addiction and its relation to crime* personality, intelli­
gence, and general characteristics of addicts; and methods of treatment.
The next three years were spent abroad.

Stationed at Dublin, Irish

Free State, he traveled widely on the continent making studies of 3,000 cases
in six countries of the intelligence of those who applied for visas for entry
into the United States.

- P —

Ho returned to Washington in the sunr.:er of 1931 to prepare his studies
for publication hut continued also as field consultant in mental hygiene for
the Public Health Service,
Originally of Galesville, Maryland, Dr# Kolb was graduated from the
University of Maryland School of Medicine in 1908#

He was commissioned from

that State as assistant surgeon in the Public Health Service the following year.
He was promoted to the position of passed assistant surgeon in 1913, surgeon
in 1921, senior surgeon in 1930, and to medical director in 1935#
Dr* Treadway, who had been head of the Mental Hygiene Division since 1930,
was stationed at Ellis Island and at Wardfs Island, early in his career up to
1915.

His next three years were given over to field investigations devoted es­

pecially to the study of prevalence and needs of mentally defective and dependent
children, of the relation of mental disorders to crime, and of correctional in­
stitutions and systems throughout the country.
Between 1918-25, he served as Chief of the Section of Neuropsychiatry in
the Veterans Bureau and of the U, S. Public Health Service Hospital Division in
Washington, D*C*, and as Medical Officer in Charge of Eield Studios and Investi­
gations of Mental Hygiene at Boston, Massachusetts.

While here, Dr. Treadway

engaged in research upon mental hygiene and its relation to migrating peoples,
and conducted studies with reference to the insane and chronic alcoholism.
Prom 1925-28, he was stationed at Queenstown and Dublin, Ireland, and'at
London, England, as Medical Advisor to the American Consulate.

At the latter

station he carried on special studies at the National Hospital for Norvous Dis­
eases and Epilepsy.
In 1929 he was made Chief of the then newly created Narcotics Division of
the Public Health Service « A year later, this office became the present Division
of Mental Hygiene.
— oOo—

-

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
August 1« 1958_____ , 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

August 3. 1958_________ .
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.

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

ITo loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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 3ank or branch thereof.

Isabronrixagfagnfc

EOR RELEASE, MOMDTG PAPERS,

TREASURY DEPARTMENT

Friday, July 29, 1958._____

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100«000.OOP , or thereahoutSrThey will he 91 -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, August 1, 1958

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated August 5. 1938
matnre on November 2, 1968

> and will

, and on the maturity date the face amount

Zfxptjg.
will he payable without interest.

They will he issued in hearer form

only, and in amounts or denominations oi $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 ixwconsrderecL
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 hot 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 bil

TREASURY DEPARTMENT

POR RELEASE, MORNING PAPERS,
Friday, July 39, 1938._____

The Secretary of the Treasury gives notice that tenders are invited
for Treasury hills 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^lock p. m. , Eastern Standard time, on
Monday, August 1, 1938«

Tenders will not be received at the Treasury

Department, Washington.
The Treasury bills will be dated August 3, 1938, and will mature
on November 2, 1938, and on the maturity da.to the face amount will be pay­
able 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 múltiplos 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 tendors on
August 1, 1938, 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 tonders, and to allot
loss 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 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 August 3, 1938.
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.

(Attention is

invited to Treasury Decision 4550, ruling that Treasury bills are not
exempt from the gift tax,)

ITo loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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 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.

-oOo-

TREASURY DEPARTMENT
Washington, D. C*

FOR RELEASE

U liM .rn

.
| V » ^ 6

Press Service
No«
/7 ¿¿3

Secretary of .Treasury 'Mowgpnrthnie today issued the first section of
a report, prepared by the Division of Research and Statistics^whioh was
made possible through funds allocated ttr bha Oeeretary ef theHProasugy
by the Works Progress Administration, covering statistical data compiled
from Federal income tax returns for 1934«
The section released today is entitled Statistics of Income
Supplement compiled from Federal income tax returns of individuals for
the income year 1934, Section Iw and shows the number of individual income
tax returns for 1934 classified by States, counties, and cities of 25,000
and over population, by net income classes«
Ofcher sections of the report are now in preparation and will
appear from time to time as completed«
Copies of Section I may be obtained from the Superintendent of
Documents, Government Printing Office, Washington, D# C. at a price
of 15 cents per copy*

TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON'NEWSPAPERS,
Monday, August 1, 1958._________
7/29/38.

Press Service
No. 14-15

The Secretary of the Treasury today issued the first section of a
report, prepared by the Division of Research and Statistics, which was made
possible through funds allocated by the Works Progress Administration,
covering statistical data compiled from Federal income tax returns for 1934.
The section released today is entitled nStatisties of Income Supple­
ment compiled from Federal income tax returns of individuals for the income
year 1934, Section In and shows the number of individual income tax returns
for 1934 classified by States, counties, and cities of 25,000 and over
population, by not income classes.
Other sections of the report are now in preparation and will appear
from time to time as completed.
Copies of Section I may be obtained from the Superintendent of
Documents, Government Printing Office, Washington, D. C., at a price of
15 cents per copy.
■oOo—

-

2

-

Government
Securities

$3,490,121
Totals 'brought forward............ ••••••$3
»*490,121

Governmentguaranteed
Other
Securities Securities*
(000 omitted) '
$ 2Ê9.603 $ 44,835

662,300
Old-Age Reserve Account...... ......, 662,300
Foreign Service Retirement and
3.32S
Disability Fund
Canal Zone Retirement and Disability
3,6 6 2
Fund (l) •••••••••••....•...... ....
3*6^2
25,800
Adjusted Service Certificate Fund ••
Alaska Railroad Retirement and
Disability Fund ••••... .
327

$4,185,538

Federal Farm Mortgage Corporation .••••$
4
57,683
Federal Land Banks ...... .
63,110
Federal Intermediate Credit Banks ..
61,630
Banks for Cooperatives
4,930
Production Credit Corporations ....•
1,770
Production Credit Associations *.«♦«
,
1,638
Joint Stock Land Banks ** ........
25,276
Federal Home Loan Banks •••••••...
1,100
Home Owners* Loan Corporation ...... ►
48,020
Reconstruction Finance Corporation •••*,
4,187
Inland Waterways Corporation ** •••• ,
Ü.S. Spruce Production Corporation ....
125
269,>469
Totals
Hotel

-

-

•

_

-

-

-

-

$269,603

$ 44,835

$

$764,455
500

9,000
23.995
13,842
11,116
7.351
8,628

-

12,125
25,932
75,268
2U2
-

-

-

«

-

$73,932

_J
$878,522

All trust funds may be invested in Government and Governmentguaranteed securities, and certain funds may also be invested
in additional securities as indicated:
(1) In Federal Farm Loan Bonds;
(2 ) Ho Limitations

♦Consist principally of Federal Farm Loan Bonds and Federal
Intermediate Credit Bank Debentures.
** Latest figured available.

0O0—

.

TREASURY DEPARTMENT

Accounts and Deposits

MR. HEFFELFINGER

TREASURY DEPARTMENT
Washington
Press Service
No• l i - l i

POE RELEASE,

C l i p e Secretary
iSecretary
®
Morgenthau
Morgenths released today the following statement relative to
the amount of Government and other securities held in governmental trust accounts
and hy governmental corporations and agencies:
SECURITIES
-AS INVESTMENTS IN TRUST PONDS AND IN ACCOUNTS
OP CERTAIN GOVERNMENTAL CORPORATIONS AND AGENCIES

~

PHOTS SO, IfeSS

Government
Securities

Fuaci or Agency.

Governmentguaranteed
Securities

Other I
Securities]

(000 omitted)

mmt-Postal Savings System. •...... •
Federal Deposit Insurance Corporation ••
Individual Indian Trust Funds •••••••••«
Mutual Mortgage Insurance Fund and
Housing Insurance Fund .......... .
Federal Savings and Loan Insurance Corp.
Civil Service Retirement and Disability
Fund .... .......... ........ *••••
U.S. Government Life Insurance Fund (1)»
D.C. Teachers' Retirement Fund (2)••••••
Alien Property Custodian Fund
Panama Canal Zone Funds (l)
General Post Fund, Veterans' Administra­
tion
Library of Congress Trust Fund (2) .....
D.C* Workmen's Compensation Fund (l)
Longshoremen's and Harbor Workers'
Compensation Fund (i).............
German Special Deposit Account »••••••.*
National Institute of Health Gift Fund *
Comptroller of the Currency Employees*
Retirement Fund ••••••••••••••••••••••
Pershing Hall Memorial Fund »••••••••*••
National Park Trust Fund (2)
Ainsworth Library Fund, Walter Reed
General Hospital
District of Columbia Water Fund .«••••*•
Unemployment Trust Fund
Railroad Retirement Account ••••••••*•••

927,99s
3*49,09*+
1+2,*+63
19,686
10,015
396, *406
760,8*42
5,*400
30*710
l,S50

$ 166,83*4
72
102,5S7
mm

-

95
5

mm

1,2*42
I9S
12

•

-

21

—
•
1*2,067
1,965
29O
*437
11

*43

10

101

3,957
S3

-

1

1,107
1
10

$

—

•*

_

mm

-

mm

10
736

S72.000
66.200________ S----$3,1150,121
$269,603

mm

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, August 3, 1938,
8/2/38.

Press Service
No. 14-16

Secretary Morgenthau released today the following statement relative
to the amount of Government and other securities held in governmental trust
accounts and by governmental corporations and agencies:
SECURITIES HELD AS INVESTMENTS IN TRUST FUNDS AND IN ACCOUNTS
OF CERTAIN GOVERNMENTAL CORPORATIONS AND AGENCIES
ON JUNE 30, 1938,
Government
Securities
Fund or Agency

Governmentguaranteed
Securities

Other
Securitie!

(000 omitted)
Postal Savings System................. $
Federal Deposit Insurance Corporation...
Individual Indian Trust Funds........ .
Mutual Mortgage Insurance Fund and
Housing Insurance Fund.... ..........
Federal Savings and Loan Insurance Oorp.
Civil Service Retirement and Disability
Fund,...............................
U.S-.Government Life Insurance Fund (l)..
D,C.Teachers * Retirement Fund (2).......
Alien Property Custodian Fund......... .
Panama Canal Zone Funds (l)...........
General Post Fund, Veterans * Administration................ ........ .
"Library of Congress Trust Fund (2)......
D.C. Workmen’s Compensation Fund (I).,....
Longshoremen*s and Harbor Workers1
Compensation Fund (l)...............
German Special Deposit Account.........
National Institute of Health Gift Fund..
Comptroller of the Currency Employees’
Retirement Fund......................
Pershing Hall Memorial Fund,........ ...
National Park Trust Fund (2)..........
Ainsworth Library Fund, Walter Reed
General. Hospital,,........... .... .
District of Columbia Water Fund........
Unemployment Trust Fund................
Railroad Retirement Account..........

927,998
349,094
42,463

$ 166,834
72

19,686
10,015

102,587

396,406
760,842
5,400
30,710
1,850

—
95
—
5

1,107
1
10

—
—

101
3,957
83

—

1,242
198
12
10
736
872,000
66,200
3,490,121

$
«■*
21

_
42,067
1,965
290
1
437
11
43

10
-

—

—
—

—

—

~

—

-

-

- 2 Government
Securities
Fund or Agency

Governmentguaranteed
Securities

Other
Securities*

(000 omitted)
Sotáis brought forward,.............. .$3,490,121

$269,603

662,300
Old-Age Reserve Account.... .
Foreign Service Retirement and
3,328
Disability Fund..................
Canal Zone Retirement and Disability
Fund (1)...................... i..
3,662
Adjusted Service Certificate Fund....
25,800
Alaska Railroad Retirement and
327
Disability Fund........ ..........
Totals........... .$4,185,538

—

Federal Farm Mortgage Corporation.... .$
57,683
Federal Land Banks..................
63,110
Federal Intermediate Credit Banks....
61,630
Banks for Cooperatives.............
4,930
Production Credit Corporations.... .
1,770
Production Credit Associations......
1*638
Joint Stock Land Banks**..*.........
25,276
Federal Home Loan Banks............
1,100
Home Owners Loan Corporation.... ....
48,020
Reconstruction Finance Corporation. •.
4,187
Inland Waterways Corporation**......
U.S. Spruce Production Corporation...
125
Q?0*b9rlS* •
4 ' 269,469

Note:

$ 44,835

m
m

m
m
$269,603.

$4-1,835

$

$764,455
500
12,125
25,932
75,268
242

~
. 9,000
23,995
13,842
11,116
7,351
8,628
**
$ 73,932

m
p
•*
“T 878,522

All trust funds may be invested in Government and Governmentguaranteed securities, and certain funds may also "be invested
in additional securities as indicated:
(1) In Federal Farm Loan Bonds;
(2) Ho Limitations,

*Consist principally of Federal Farm Loan Bonds and Federal Intermediate
Credit Bank Debentures,
**Latost figures available.
-oOO'

TtmsuHT DMPÁmiimT

x

mmmmm
r m u s i , horkot
Tu®®day» Augaat 8» 1958._______
8/1/38

mtmmmmmmymmtiu jr» *

111111111■(<ri^»«i»li<«ii)w.ii>wwiww—nMMáig»ii w»1

Fr®8® Ssrrioe \
|
^
' ”

«ntmn un rnnnti

Ií
I
d

Til® Sacretary of tb© Treasury aimounced laat etoniag tbat tii©
tendera for

#100,000,000,

or thereabout®,

#f

9l4tjr freaaury Hila 9 to

be datad Angtiat i asá to matar® Hotaabar 2, 1938, tliiob w®r® offered ®a
Jtaly Ü * w®r® op®B®d at tfe® Federal Resarv» feaak® o» Aogaat 1.
Tba dotails of tfci® laso® ar® a® follows:

T o tal applied fo r
T otal aoooptod

* #289,356,000
* 100 ,3 1 3 ,0 0 0

Range o f aoooptod M ds:

Hi«b
Low
Atora«® prie®

* 99*990 !iul*al®nt «at® appreaeiiaat®ly 0.040 pi
* 99.983
»
»
*
0.09?
- 99.984
*■
*
•
0.062

(94 pareent of th® asioaat M d for at tb® loa prlc® «a® a®e«pt®d)

TREASURY DEPARTMENT
Washiigjton
FOR RELEASE, MORNING NEWSPAPERS
Tuesday, August 2,1938._______
8/1/38.

Press Service
No. 14-17

The Secretary of the Treasury announced last evening that the
tenders for $100,000,000, or

thereabouts, of 91-day Treasury bills,

to bo dated August 3 and to mature November 2, 1938, which were offered
on July 29, wore opened at the Federal Reserve banks on August 1.
The details cf this issue are as follows:
Total applied for
Total, accepted

- $289,356,000
- 100,315,000

Range of accepted bids:
Sigh
Low
Average price

- 99.990 Equivalent rate approximately 0.040 percent
- 99.983
«
»
«
0.067
11
- 99.984
»
«
»
0.062
n

(94 p ere ait of the amount bid for at the low price was accepted)

■o0o'

For W ednesday pm*s

United States Coast Guard units throughout the
country and in its territories

and possessions will celebrate tomorrow

the 148th anniversary of the founding of the Service.
Aboard cutters and in the air and at shore stations
§n& offices of division headquarters the day will be commemorated.
of the

SEpSte

Some

ships and planes will be in the Bering Sea and others

cruising the equatorial islands of the Pacif ic but all will have some form
of observance of Coast Guard Day and ahifr»by radio will be in contact
with Headquarters in Washington.
Major programs for the day are scheduled at Manteo,
H. C., and Grand Haven, Mich.

At the former place Assistant Secretary

of the Treasury Stephen B. Gibbons, who is in charge of the Coast Guard,
will spdak and j

l

K

f

l

i

£> r the latter celebration the cutter

ESCAMBA, berthed at Grand Haven, will becone the flagship of the Service
for the day when the Commandant;, Rear Admiral R. R. Waesche, is “piped“
aboard.

Both demonstrations will be featured by lifesaving drills , boat

races and entertainment programs.
connection with the anniversary, Admiral Waesc
today sent the following message to the officers and enlisted men of the
♦

. ^ "^At Grand Haven t t i n the admiral will be guest of

honor at a dinner for 500 Coast Guardsmen and their familiBir. The
ceremonies will be broadcast over a nation-wide radio hookup between
6 5 I5 and 6:30 o*clock, Eastern Standard Time, and again between 9:15 and
9:30 o* clock that evening*

■oaitej
11 celebrate
4gust

the

3 "N$nd

3Íates"""'TCoast^'ousSa

148th anniversary of the founding of the ^efvioi
Rear
4,
Admiral
R*R* Waeschej

ainounced today*

a

The

pere Assistant
ipeak ^ and
laesche*

two outstand^

Grand

take plaoe

aaiefex

demonstrations will

drills^*" by the

s mil as

e&gl^ainment
Admiral

nli^ed men of the

Rear

will
Admiral(
by

facilities of the Coast \Guard

fetes

Coast

4

Manteo, N.

be marked

water and aircraft

Waseohe

“August

at

Gibbons

Hayiii, Mich*, wxth^an address by

if©saving

pnitsd States

will

Secretary of thejgfbi^iury Stephen B*

at

Both

event#

sent

Guard

the following

message to ofi^h»$rs and

in connection with the

anniversary!

marks the 148th anniversary of the founding of the

Coast (hard

and I take this opportunity to send warm personal

[grsttings to the officers, men and civilian employes of the Service, and to extend to
each of them, individually , my

sincere

ioh they have so efficiently and
¡^signed to

unselfishly performed

so much

numerous

unrest in the maritime world today, it

one of us to see that the highest possible
is

* service

fkA?

iSfSBP^ast

in order that

Guard

undue burdens are

(more) -o-

behooves

degree of efficiency

and that all give
not thrown

a

full

upon others*

measure

t

tasks

them«

n With
a°h

appreciation for the manner in

‘'There

are

bound

to be

disappointments and misunderstandings-- butsp

■progress will surely follow if the
jits accomplishments
■for the Servioe

and its capacity

for

works
greater

as a

team and thus increases

responsibilities.ogress

means progress for the individuals who comprise

*1
las those

Service

cordially

in civil

invite

our

pursuits* whofse

friends of the other
kindness

and

it*

Services * as well

helpfulness is

■gratefully acknowledged* to join with us in celebrating this^|^|^ occasion*
ttA

hearty

■stations and I believe
■presence will be
■j| the United

welcome
that

happily

States

awaits

all of our friends who honor us

served

Coast

with a

Guard

In addition to the

ships*

broader

our ships and

with their

knowledge

of the important

plays in the maritime life of our

country*11

Manteo and Grand Haven events

|08|eaonies will take place at all
Pi Coast ¿Guard

all who visit

Coast Guard

stations

an^Cboard

At Maneto the oelebr&tionjpfl be marked b;

|ft MomonstrationS^of life saving both by Coast ^gH&ard

boats and

I

pirfraft •

Hear Adm^hal Waesche will be the*^principal speaker

at

fra|d Haven at a dinner AuguH^ 4 to jjprgiven for 500 Coast Guardsmeii and
I

P®|r Emilies

7

be

broadcast

A
M

/ r

i

9m

(*;•

U

i

¥s

over

a

nation-wide

part

■Guard Headquarters,
u., August 4, 1938,

■B I M B E Q O S r"
- i L

C

w

i

U / W

. ,193a. marlr^Ljbhe 148th ar^WAT»««^ nf-tho **-■»'n i.niw r m -uf-ther
S t ^ r - n ^ r P G ^ M ard*,

in 1790 "by the First Congress, under'

the designation of the Revenue Marine.

The Continental Navy had "been disbanded

after the end of the Revolutionary War, and for more than six years after its
founding, the little Revenue fleet of ten vessels was the only armed force afloat
to safeguard the maritime interests of the

nation.

The first

commission granted to an officer of this organization**in fact^ the first com­
mission to any officer afloat*»was signed by President Washington and tendered
to Captain Hopley Yeaton.

The original document is now preserved in the Library

of Congress in Washington,
The Revenue Marine soon became the United States Revenue Cutter Service,
operating under the Treasury Department, and began to acquire new duties under
various other Departments as its organization was built up.

Established primar­

ily for protecting the!^^&h* revenue of t h e ^ S S ^ republic by suppressing smug­
gling» more and more duties were assigned to it/I From a humble beginning, the
floating units of the Coast Guard, supplemented by the wings of powerful amphibian
planes, have been augmented and have been developed into a complete coastal police
force, protecting the shores of the Atlantic, Pacific and Great Lakes, the great
inland waterways, the waters of Alaska and our insular possessions.

The Coast

Guard has been charged with the enforcement of all Federal laws on the high seas
and navigable waters of the United States. j T j g j ^ t h r e e years ago another duty
was added - that of maintaining an efficient patrol each Spring and Summer in the
^orth Atlantic Ocean, guarding against the menace of the iceberg peril in the re­
gion of the Grand Banks, under the provisions of the International Convention for
Saf

p Qfty of TLife at Sea, to safeguard the ocean lanes.

Of all these duties, however, the one of paramount importance - the one
for which the entire organization of the Service is coordinated to perform with
all the energy, fidelity and courage at its command - is the saving of life and
property on the coasts and other navigable waters of the country.
The Life-Saving Service, established under the Treasury Department in 1845
and gradually expanded until it* operating a chain of stations on both coasts and
on the Great Lakes, was also in the business of saving life and property.
for reasons of economy and coordination, these two

In 1915

humanitarian services of

the Treasury Department were amalgama^d«~^=ISIêyt&e maritim e people of Uklu "Country wp&ér the'yiame of t>ie C<
[Congress whiciyfcius forjB^S\the bpast( Guard ppdhrides tk&t itV1shall^operate under

\he Treasury department X i n / t i ^ of pe^-4nd'b^St^-"'as' "apart of
je\t to the orders-e#^£eSecr elTary of the Navy, in time of w°" rrr

-wnr rr r - 1

1 i i l1T "tr

dent ahal |

By this means, and by the building up of a communication system of central
radio stations supplemented by land-wire, cable and telephone lines, every unit of
the land and sea forces can now be apprised of a disaster occurring anywhere in
the country and those nearest the scene dispatched to aid with the least possible
delay,

f a e ^ r y moment
n

L

/

~6n the/4re^x Lakes

GuanO. Stat

Mlantii

tsts,

/ant yatch is kèpt/bn every lan/ ajaft water activity/wijbiiin the
Hie
ice

'short-wave x'adio loud speaker keeps the lookrftfC in constat
agency]broadcast s

wa; 13 the ne'ar'i
with

icidents he ct

Jh

id the-big

^ay on TEs mssfuii^pf rescue.

~

2

-

The

.©boat hi’
rrs

res a rigid discipl/
of orders - amdNn

there must he no delay, no h
is the c?

mimta^organi !

in thj

ice.

no questioi

The Coast Guard is a strictly

drilled and reac

)lace he side

rdmatically does in time of war.
With Headquarters at Washington, D. C., the Coast Guard operates large cutters
and patrol boats, numerous small patrol boats, big amphibian seaplanes and life
saving stations, with a total personnel of approximately 10,000 officers and menu*.
si! y;>,^ r ffag

-- ^

.-^nrWlMM

For the detailed administration of this force, the entire country, including
Alaska and the islands of Hawaii and Puerto Rico, is divided into nine divisions,
each under a division commander.

Por the administration of the numerous stations,

the divisions are further divided into thirteen districts, each with its district
commander responsible to the division commander.
' As an indication of the concrete value of the Coast Guard to the people of
the United States, it is necessary only to cite the fact that during the fiscal
year 1937, it saved 7,631 persons who were in peril of drowning, seized or re­
ported 4,127 vessels which were violating navigation and other laws, patrolled
386 regattas to safeguard against accidents and loss of life, removed or destroyed
230 derelicts and other obstructions that seriously menaced the safety of shipping,
I aad assisted to safety vessels in dire distress to the value of $98,004,465.00.

U t'
3

TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Wednesday, August 3, 1958.
8/2/38.

Press Servicg
No. 14-18

United States Coast Guard units throughout the country and in its
territories and possessions will celebrate tomorrow the 148th anniversary
of the founding of the Service.
Aboard cutters and in the air and at shore stations and offices of
division headquarters the day will be commemorated.

Some of the ships and

planes will be in the Bering Sea and others Cruising the equatorial islands
of the Pacific but all will have some form of observance^ <if Coast Guard Day
and by radio will bo in contact with Headquarters in Washington.
Major programs for the day are scheduled at Manteo, N. C., and Grand
Haven, Mich.

At the former place Assistant Secretary of the Treasury Stephen

B. Gibbons, who is in charge of the Coast Guard, will speak and for the lattor
celebration the cutter ESCANABA, berthed at Grand Haven, will become the
flagship of the Service for the day when the Commandant, Rear Admiral R. R.
Waesche, is npipedn aboard.

Both demonstrations will be featured by life­

saving drills, boat races and entertainment programs.
At Grand Haven the admiral will be guest of honor at a dinner for
500 Coast Guardsmen and their families.

The ceremonies will be broadcast

over a nation-wide radio hookup between 6:15 and 6:30 o*clock, Eastern
Standard Time, and again between 9:15 and 9:30 o*clock that evening.
In connection with the anniversary, Admiral Waesche today sent the
following message to the officers and enlisted men of the Coast Guard:

"August 4 marks the 148th anniversary of the founding of the United
States Coast Guard and I take this opportunity to send warm personal greet­
ings to the officers, men and civilisn employes of the Service, and to extend
to each of them, individually, my sincere appreciation for the manner in
which they have so efficiently and unselfishly performed the numerous tasks
assigned to them*
"With so much unrest in the maritime world today, it behooves oach
one of us to see that the highest possihlo degree of efficiency is maintained
in the Coast Guard and that all give a full measure of service in order that
undue burdens are not thrown upon others*
"There rare bound to be disappointments and misunderstandings —

but

progress will surely follow if the Service works as a team and thus increases
its accomplishments and its capacity for greater responsibilities.

Progress

for the Service means progress for the individuals who comprise it.
"I cordially invite our friends of the other Services, as well as
those in civil pursuits, whose kindness and holpfulness is gratefully ack~
nowledged, to join with us in celebrating this occasion.
"A hearty welcome awaits all who visit our ships and stations and
I believe that all of our friends who honor us with their presence will be
happily served with a broader knowledge of the important part the United
States Coast Guard plays in the maritime life of our country."
The Coast Guard vías established in 1790 by the First Congress, under
the designation of the Revenue Marine.

The Continental Navy had been dis­

banded after the end of the Revolutionary War* and for more than six years
after its founding, the little Revenue fleet of ten vessels was the only
armed force afloat to safeguard the maritime interests of the nation.

The

- 3 -

first commission granted to an officer of this organization —
first commission to any officer afloat —
and tendered to Captain Hopley Yeaton.

in fact, the

was signed by President Washington

The original document is now pre­

served in the Library of Congress in Washington.
The Revenue Marine soon became the United States Revenue Cutter
Service, operating under the Treasury Department, and began to acquire new
duties under various other Departments as its organization was built up.
Established primarily for protecting the revenue of the republic by suppress­
ing smuggling, more and more duties were assigned to it.
Prom a humble beginning, the floating units of the Coast Guard,
supplemented by the wings of powerful amphibian planes, have been augmented
and have been developed into a complete coastal police force, protecting
the shores of the Atlantic, Pacific and Great Lakes, the great inland water­
ways, the waters of Alaska and our insular possessions.

The Coast Guard has

been charged with the enforcement of all Federal laws on the high seas and
navigable waters of the United States.
Twenty-three years ago another duty was added

that of maintain­

ing an efficient patrol each Spring and Summer in the Horth Atlantic Ocean,
guarding against the menace of the iceberg peril in the region of the
Grand Banks, under the provisions of the International Convention for Safety
of Life at Sea, to safeguard the ocean lanes.

This duty followed the

Titanic disaster.
Of all these duties, however, the one'of paramount importance —
the one for which the entire organization of the Service is coordinated to
perform with all the energy, fidelity and courage at its command —

is the

saving of life and property on the coasts and other navigable waters of the
country.

4

The Life-Saving Service, established under the Treasury Department
in 1845 and gradually e:xpanded until it was operating a chain of stations
on both coasts and on the Great Lakes, was also in the business of saving
life and property.

In 1915 for reasons of economy and coordination, these

two humanitarian services of the Treasury Department wore amalgamated.
By this moans, and by the building up of a communication system of
central radio stations supplemented by land-wire, cable and telephone linos,
every unit of the land and sea forces can now be apprised of a disaster
occurring anywhere in the country and those nearest the scene dispatched
to aid with the lea.st possible delay.
With Headquarters at Washington, D. 0., the Coast Guard operates
large cutters and patrol boats, numerous small patrol boats, big amphibian
seaplanes and life saving stations, with a total personnel of approximately
10,000 officers and men.
Bor the detailed administration of this force, the entire country,
including Alaska and the islands of Hawaii and Puerto Rico, is divided into
nine divisions, each under a division commander.

Por the administration of

the numerous stations, the divisions are further divided into thirteen dis­
tricts, each with its district commander responsible to the division
commander.
As an indication of the concrete value of the Coast Guard to the
people of the United States, it is necessary only to cite the fact that dur­
ing the fiscal year 1937, it saved 7,631 persons who were in peril of drown­
ing, seized or reported 4,127 vessels which were violating navigation and
other laws, patrolled 386 regattas to safeguard against accidents and loss
of life, removed or destroyed 230 derelicts and other obstructions that
seriously menaced the safety of shipping, and assisted to safety vessels in
dire distress to the value of $98,004,465.00#
A.

— oOo—

TREASURY DEPARTMENT
Washington
JOE RELEASE, MORNING NEWSPAPERS,
Friday, August 5, 1938,
8/3/38^
~

Press Service
$j0. 14 ^ 1 9

Acting Secretary of the Treasury Magi 11 today made pub3„ic preliminary
statistics of corporation income and excess-profits tax returns for 1936 filed
in the period January through December, 1937, prepared under the direction of
Commissioner of Internal Revenue Guy T. Helvering*
In general, the returns covered by this release are for the calendar
year 1936*

However, a considerable number of returns are filed for a fiscal

year other than the calendar year.

These returns for fiscal years ended in

the period July, 1936, through June, 1937, are tabulated with the calendar
year returns*

There are also included part-year returns for which the greater

part of the accounting period falls in 1936.

The statistics are compiled from

the returns as filed and prior to revisions that may subsequently be made as a
result of audit by the Bureau of Internal Revenue.
The number of corporation income and excess—profits tax returns for
1936 is 530,779, of which 203,162 show net income amounting to $9,477,979,748,
while 275,695 show a deficit of $2,156,054,676, and 51,922 have no income data.
Ihe normal tax is $1,024,756,219, the surtax on undistributed profits $144,967,836*
the excess-profits tax $21,664,845, and the total tax $1,191,388,900.
The comparability of the figures tabulated from the 1936 returns and
thoso from the 1935 returns is affected, to a great extent, by the provisions
0f the revenue acts under which returns for the two years were filed.

Returns

ith fiscal years ended prior to December 31, 1936, show income tax data accordto the provisions of the Revenue Act of 1934, and returns for the calendar
^ 1936 ana for fiscal years ended in the period January through June, 1937*

TREASURY DEPARTMENT
Washington

I0R RELEASE, MORNING NEWSPAPERS,
Trlday, August 5, 1938.

Press Service

Acting Secretary of the Treasury Magi 11 today made public preliminary
statistics of corporation income and excess-profits tax returns for 1936 filed
in the period January through December, 1937, prepared under the direction of
Commissioner of Internal Revenue Guy T. Helvering*
In general, the returns covered by this release are for the calendar
year 1936.

However, a considerable number of returns are filed for a fiscal

year other than the calendar year.

These returns for fiscal years ended in

the period July, 1936, through June, 1937, are tabulated with the calendar
year returns.

There are also included part-year returns for which the greater

part of the accounting period falls in 1936.

The statistics are compiled from

the returns as filed and prior to revisions that may subsequently be made as a
result of audit by the Bureau of Internal Revenue.
The number of corporation income and excess-profits tax returns for
1936 is 530,779, of which 203,162 show net income amounting to $9,477,979,748,
while 275,695 show a deficit of $2,156,054,676, and 51,922 have no income data.
Ihe normal tax is $1,024,756,219, the surtax on undistributed profits $144,967,836,
the excess-profits tax $21,664,845, and the total tax $1,191,388,900.
The comparability of the figures tabulated from the 1936 returns and
those from the 1935 returns is affected, to a great extent, by the provisions
the revenue acts under which returns for the two years were filed.

Returns

th fiscal years ended prior to December 31, 1936, show income tax data accord§ to the provisions of the Revenue Act of 1934, and returns for the calendar
^ 1936 and for fiscal years ended in the period January through June, 1937,

3

-

corporations not filing consolidated returns.

The Revenue Act of 1936 extended

the privilege of filing consolidated returns to street, suburban, and interurban
electric railways.
Corporations are classified industrially according to their predominant
business.

Owing to the diversified activities of many corporations,the indus­

trial groups do not contain solely corporations engaged exclusively in the
industries in which they are classified.

This year, the industrial groups

"Clothing and apparel,” ’’Petroleum and other mineral oil products” and ’’Motor
vehicles, complete or parts” are shown as major industrial groups for the first
time.

In prior years, the group "Textile mill products” included ’’Clothing and

apparel”,"Chemicals and allied products” included "Petroleum and other mineral
oil products,” and "Metal and its products” included "Motor vehicles, complete
or parts. ”
In the following table all 1936 returns are segregated by industrial
groups and by "returns with net income", "returns with no net income” and "returns
of inactive corporations”.

There are shown, of the following data, the items

that are applicable to each segregation:

number of returns, gross income, net

income or deficit, normal tax, surtax on undistributed profits, excess—profits
tax and total tax.

In this table, composite data are shown for returns with

fiscal years ended prior to December 31, 1936, filed under the Revenue Act of
1934, and for returns for the calendar year 1936 and for fiscal years ended in
the period January through June, 1937, filed under the Revenue Act of 1936.
The gross income, deductions, net income and deficit, reported on returns
for fiscal years ended prior to December 31, 1936, have been arbitrarily adjusted
for this tabulation to conform to the definitions of these items under the
Revenue Act of 1936, but the income tax and excess-profits tax have not been
adjusted according to the provisions of the Revenue Act of 1936.

\

Corporation, 1 9 3 6 , returns filed in period January through December, 1 9 3 7 , *y major industrial groups and by returns with net income and -with no net income;
number, gross income, deductions, net income or deficit, normal tax, surtax on undistributed profits, excess-profits tax and total tax;
-also Uwpber of returns of inactive corporation^
(Money figures in thousands of dollars)

Industrial groups

Agriculture and related industries
Mining and quarrying
Manufacturing;
Food and kindred products
Liquors and beverages (alcoholic and
nonalcoholic)
Tobacco products
Textile mill products
Clothing and apparel
Leather and its manufactures
Rubber products
Forest products
Paper, pulp and products
Printing, publishing and allied
industries
Chemicals and allied products
Petroleum and other mineral oil
products
Stone, clay and glass products
Metal and its products
Motor vehicles, complete or parts
Manufacturing not elsewhere classified
Total manufacturing
Construction
Transportation and other public utilities
Trade
Service— Professional, amusements, hotels,
etc •
Finance— -Banking, insurance, real estate,
holding companies, stock and bond
brokers, etc.
Nature of business notT given
Grand total

Total
number of
returns
9,86o
18,174

13 ,0 5 7

Returns with net income 1 /
;

Number

Gross
income 2 /

2,920

523,992

5,146

2,069,330

6,233

2/
458,156
1,769,282

8 ,8 2 4 , 0 6 9

8,406,504
1,295,889
1,060,198
3,374,868
1,703,322
993,062
856,220
1,205,254
1,314,070

3 ,3 3 2

1 ,7 6 6

379

I53

1,471,645
1,188,166

7,827
8,203
2,401
618
6,722
2,371

3 ,9 0 3

3 ,5 9 6 , 7 7 2

3 ,6 3 3

1 ,7 5 9 , 6 6 7

1,200

1 ,0 4 3 , 7 0 9

330

9 1 0 ,9 9 1
1 ,2 9 2 , 1 3 5

3 ,1 4 5
1 ,4 4 0

Deductions

1 ,4 3 7 , 4 1 6

Net income
;

y

Returns with no net income 1 /

Normal tax
!

3/

;

Surtax on
undistributed
profits

;
;
;

Excess
profits tax

Total tax

;

Number

4/

i Gross
income 2 /

Deductions
2/

Deficit
:

1/

65,837
300,048

7,666
35,083

989
3,025

328

8,983
38,612

6,025

504

8 ,6 4 2

201,766
998,165

234,470
1,122,311

32,704
124,146

4 ,3 8 6

417,565

5 3 ,5 4 4

5,221

1,310

60,076

6,028

1,566,015

1,603,758

37,743

796

175,756
127,968
221,904

23,036
17,825

5,080

649
69

1 ,2 9 4

198,162
27,440

211,486
28,638

13,324
1,198

272

211

29,697
7,219
6,683

5 ,4 7 6

28,765
18,432
36,036
8,677

3 ,7 8 2

9 1 4 ,7 3 7

4 ,4 5 5

523,088

958,793
537,132

44,055
14,044

I42
II5

1 ,1 4 4

2 3 9 ,1 6 3

253,436

7,377
10,771

1 ,1 4 3

. 50,872

1,927

559

123,346

1 3 ,?5 7

16,367

2,986

276

19,630

048

291,362

54,055
494,473
307,179

14,272
3,183

57

259
3 ,3 6 o

56,344
50,647
54,771
86,841

538

1,226
974

863
232
134
119

■

7,791
8,639

4 5 6 ,5 2 3

5,469
3,305

1 ,7 9 2 ,3 H
3 ,6 4 9 , 3 4 6

1,603,836
3,170,063

180,475

23,307
57,408

4,064
6,671

452
1,063

27,822

6,811

440,889

4 7 9 ,2 8 2

65,142 :

3 ,5 0 7

275,614

853
3,972

358
1,783

3,716,991
1,196,778
10,502,899
4,621,105
1,370,245

3,492,361
1,035,264
9,308,837

2 2 4 ,6 3 0

20,723
21,186
147,122

2,895
2,813

53

161,514
1,114,062

389
2,015
8,561
390

305,672
200,532
2,143,503
1 7 4 ,7 7 1

74*907
1 1 ,6 5 4

3 1 0 ,9 0 7

17,878

801
6,021
36,243
17,987
27,486
149,805
64,426

132,718
14,080
5 3 0 ,7 7 9

10,473
367
2,378
45,936

48,374,244
1,307,283
8,756,925

6,193
11,197
69,263

34,810,547

18,445

2,545,622

43,865
197
203 ,,162

6 ,3 7 1 , 5 7 2

2,630
1 0 4 ,7 6 2 , 1 4 4

4,187,756
1,214,278
44,301,822
1,233,290
7,380,404

15

29
217
83

2 8 ,4 7 5 ’

18,764

4 55
363

21,110

106

16,607

174
742

4 3 3 ,3 4 8

5 9 ,7 0 0

2 4 ,5 5 2
5 ,7 7 8

696

23,671
24,507
175,456
66,174

1 5 5 ,9 6 7

1 9 ,1 4 3

3 ,8 9 9

534

23,576

3 ,0 4 7

888,562
183,925
2,068,597
163,117
293,029

4 ,0 7 2 , 4 2 2

521,108

75 ,2 4 3

11,299

607,651

46,101

8,581,096

8,952,076

3 7 0 ,5 8 0

7 3 ,9 9 3

9,061
164,155

656

n ,747
173,428

7 0 3 ,4 9 2
4 ,0 5 5 , 2 8 2

1 ,3 5 2

173,540

8,460,648

740,791
4,409,168
8,673,702

353,885

4,868

10,442
13,656
76,257

37,299

757

1 4 3 ,5 7 0

2,030
8,516
25,102

213,054

2,633
4,285

5,506

912

32,447

41,258

2,103,313

2 ,3 4 6 , 5 4 9

243,235

4 ,7 2 3

144,895

71,832
1,482.

; 2,405,692
5,222

3,181,233

86

1 0 ,4 3 1

7 7 5 ,5 4 1
5 ,2 0 9

12,401

1,191,389

275,695

29,670,731

2,156,055

51,922

507
3 ,7 8 2

33,674,137

1,376,522
1,136,410

2,313,449

232,173

26,029

4,151,645
1,982

2,219,927
648

118,007

2 4 ,5 5 0

76

7

2,338
2

1,024,756

144,968

21,665

95,284,164

469,364
294,378

915

37,950
15,816

12,735
7,175

1 9 ,7 7 S

Number
returns of
inactive
oc rporations

9,477,980

2 7 ,5 1 4 , 6 7 6

44 .
596

4,206

17,021

1/ Unlike former years, Mnet income" or

deficit represents the amount for excess—prof its tax computation (item 27, p. 2 of return) ■which is equal to the difference between "total income" and "total deductions” (items 14 and 26, respectively, p.
2 of return)
and also between "gross income" and deductions in this table* Net income or deficit includes dividends received on stock of domestic
corporations subject to taxation under Title I of the effective revenue acts (item 1 2 (a)., p. 2 of return) and interest
received on certain Government obligations, which is subject to excess-prof its -tax- (it OTte’S,’ pv 2 of return), and excludes contributions
or gifts (limited to five percent of net income oír deficit before deduction of contributions of gifts)*

2/

y

V

Gross income and "deductions" correspond to "total income" and "total deductions" (item! l/r and 2 6 , respectively, p. 2 of return) plus, in each instance, "cost
of goods sold" and "cost ¡of operations" (items 2 and 5* p* 2 of return). Unlike former years,
"gross income" includes interest received on certain Government obligations, which is subject to excess-profits tax, (item 8, p. 2 of return), and "deductions"
include contributions or gifts (limited to five percent of net income before deduction of
contributions or gifts) and exclude dividends received on stock of domestic corporation^ (item 12(a), p. 2 of return)*
Includes the following amounts; income tax of $5 9 ,2 9 0 , 5 6 2 reported on returns with fiscal years ended prior to December 31, 1936; graduated normal tax of $9 3 0 ,
reported on returns for the calendar year 1936 » and for fiscal years ended in period January through June, 1 9 3 7 *
Corresponds to item 2 8 , pi 2 of return.

} f

>

<Ä1JLU.

X

JLO. \j

1 1 U X U 1 Ö .X

biXJi.

t

>.

To secure "net income for income tax computation^ (item 2 9 , p. 2 of return) this amount of excess-profits tax is subtracted from the "net income for excess-profits tax computation" (item 2 7 , p. 2 of return).

"

Treasury Department
Washington

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, August 4, 1938.______
8/3/38.

Press Service
No. 14-20

The jury of eight men chosen to make awards in the architectural
competition to provide a design and plans for the Post Office and Court
House Building at Covington, Kentucky, began its work today.
The jurors will make their selection from a total of 210 designs
contributed from a list of 650 applicants who registered for the compe­
tition.
The author of the winning design will receive an award of $4,500
for his design, and an additional $4,500 for consultation services during
the preparation of working drawings and specifications.
Announcement of the winning design will be made by the Procurement
Division as soon as the jury reaches a decision.

oOo—

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
August 8, 1958______ , all tenders received at the Federal Reserve Banks
x£g£
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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

August 10» 1938_______ .
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,

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

ITo loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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 Banin or branch thereof.

TREASURY DEPARTMSKT

FOR RELEASE, MORIfING- PAPERS,
Friday, August 5, 1938.

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100,000,000 or thereabouts^-.
^pc
They will he ^ -»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. August 8. 1958

.

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated August 10 f 1958
, and- will
8 pp
mature on November 9, 1938 , 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 F e d e r a l
Reserve Banks or branches upon application therefor.
Eo tender for an amount less than $1,000 will •ho—cunsidared*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 mush hot he used»—

Tenders will he accepted^without cash deposit from in c o r p o r ­
ated hanks and trust companies and from responsible.and recognised
dealers in investment securities.

Tenders from others must be accom ­

panied by a deposit of 10 per cent of the face amount of Treasury hi

FOR RELEASE, MORNING PAPERS,
Friday, August 5, 1938.

TREASURY DEPARTMENT

The Secretary of the Treasury gives notice that tenders are invited
for Treasury hills to the amount of $100,000,000, 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 Federal Reserve Banks, or the

branches thereof, up to two o !clock p. m., Eastern Standard time, on
Monday, August 8, 1938.

Tenders will not he received at the Treasury

Department, Washington.
The Treasury hills will he dated August 10, 1938, and will mature
on November 9, 1938, 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 ex­

pressed 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.

- 2 -

Immediately after the closing hour for receipt of tenders on
August 8, 1938, 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 express-

ly 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
v
cash or other immediately available funds on August 10, 1938.
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.

(Attention is

invited to Treasury Decision 4550, ruling that Treasury bills arc not
exempt from the gift tax.)

Ro 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 nay bo obtained from any Federal

Reserve Bank or branch thereof.

-oOo-

(two)----

^

Sec r e ta r y

Morgenthau

inaugurated

th e

T reasu ry Departm ents

annual v r n m i m m J m fifrife fP ^atbi
^ ^ g g P M v
s e r v ic e s
c rim in a ls*

th a t

might

th e

be lia b le

napi

agents o f the

to f e t t e r [p ro te c t

v a rio u s

them selves

H ---- tens .-Trrttt "" t 1*

in operation s

agi

' ""'""i ' h 1l*...... '"■*

thr m m i1 i -- *i----r —
«**§&
4
.i

A*W. Quick a
P.M* Chapman/ o f S e a t t l e ^ and
New Y ork, a l l o f the Bureau o f

Customs, shot

-

i t J *. JN*

o f New Y ork,

W*J* Osmer^ o f

297 e e i M i ^ P i i i M M M i

j
\lyi i «) y
On the Alcohol Tax Unit A^eam A#L. Meloohe^of Phoenix^

j£g? r*1-

" a ^ ^ ^ T riiilson^Tof San Francisco^g|HB9e^ 2 9 7 « E*L. Warden/ of the Ihite House
shot 299

and

The

R .G . Ford* of the same organ izatic
wore

Echols
S e a t t le ,

W*J. Osmer, o f New York

mmQm

R .P . Hi

296,

^>U. / * -7Z

-Y 'O -ß

ff"*m'
^iw

£*,i *i %Ir-

Acting
today
3Mk

presented
the silver

proficiency

by

matches

the Bureau of Customs

cup

offered

and bronze

by

team match

team

Secretary Morgenthau for

I

v

299

winners^ who

, a perfect
296 $

and

score* In two previous

completing

•*-u

his

another perfectb score of 500
yesterday*
perfect
score
4
8
B
i^Paso, liexas, alsu made- -ar perfect
a

were

Customs,

Bureau of

New York,
500

____
dUCEU
also presented

Mr* Mai

to the individual

shot

Echols

revolver

by tlin i

medals

L«E. Echolsj. of

in the

who

Magill

Secretary

in small-arms
u * — > H s fa jT r
<UaJ

gold, silver
topped

to

Ú

S*L* Ballinger*

rnSbéémHém&m»*bim pweeewtiaifaUitti
üurtis

the competitors

the
luard

ided by Captal

staj

The

ten

leading

individual

shots

were
é

detailed to remain in

TSashingfcon during the^August

to

Camp

54

0
ajgpfe August
*

train

for

the

Perry, Ohio, national

matches; which

As

ih^w*^fiminary training
the Treasury law—-enforcement officers
VW
V
»
I
^
3
^
vV experts
of
from the
instructed by tip^Jnited States^”~tfoast Guard* 4§

best shots
at

six will be

selected

to

»•w*' « r w

will be
ten
Departs®^

represent the

Camp Perry*
Bureau of

and Hiihite House Police *4ipi
were

considerably

shoots

and

better

teams
than

were ^ M g N t e J h i g h e r

>

w\ ^ ~
(more) -o-

/

led

—

in the

Alcohol Tax up^

•—& < ■ ' * * * - "
the shootingwxhe scores
two previous

than in the
Ci

Customs,

annual

preliminaries

which were held *

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Friday, August 5, 1958.

Press Service
No. 14-21

Acting Secretary Magill today presented to the Bureau of Customs revolver
team the silver cup offered by Secretary Morgenthau for proficiency in smallarms marksmanship "by Treasury agents engaged in law-enforcement and protective
duties.
Mr. Magill also presented gold, silver and bronze medals to the individual
winners, who were topped by L. E. Echols of .New York, Bureau of Customs, who
in the team match shot 300, a perfect score.

In two previous matches Echols

scored 299 and 296, completing his record with another perfect score of 300
yesterday.

E. L. Ballinger of El Paso, Texas, also made a perfect score

yesterday.
The ten leading individual shots were detailed to remain in Washington
during the period from August 5 to 20 to train for the Camp Perry, Ohio,
national matches, which open August 21.

As in their preliminary training

the Treasury law-enforcement officers will be instructed by experts of the
United States Coast Guard.

Prom the ten best shots six will be selected to

represent the Department at Camp Perry.
The Bureau of Customs, Alcohol Tax.Unit and White House Police teams
led the shooting in this week*s matches.

The scores were considerably better

than in the two previous annual shoots and wero higher than in the prelimin­
aries which were held throughout the country in July.
Secretary Morgonthau inaugurated the Treasury Department1s annual marks­
manship training tests so that the agents of the various services might be
better able to protect themselves in operations against armed criminals.

In yesterday*s matches A. W. Quick of New York, P. M. Chapman of Seattle
and W. J. Osmer of Now York, all of the Bureau of Customs, shot 297 each.

On

the Alcohol Tax Unit team A. L. Moloche of Phoenix, £riz. , scored 298 and tho
targets of K* A. Wilson of San Francisco totaled 297.

E. L. Warden of tho

White House Police shot 299 and R. G-. Ford of the same organization registered

IMPORTS OF DISTILLED LIQUORS AND WINES AND DUTIES COLLECTED THEREON - JUNE 1938

DISTILLED LIQUORS (Proof Gallons):
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
STILL WINES (Liquid Gallons) 2
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
SPARKLING WINES (Liquid Gallons):
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
DUTIES COLLECTED ON:
Distilled Liquors
Still Wines
Sparkling Wines
Total Duties Collected on Liquor
Total Duties Collected on Other
Commodities
TO TA L D U T IE S C O LLECTED

June
1938

May
1938

June
1937

3,517,231
903,599
4,420,830
924,466
2,698

3,616,086
749,553
4,365,639
843,488
4,920

3,771,454
1,298,096
5,069,550
1,191,295
14,416

3,863,839
13,977,379
17,841,218
14,257,855
89,697

3,706,839
16,402,696
20,109,535
16,138,202
107,494

3,493,666

3,517,231

3,863,839

3,493,666

3,863,839

1,363,376
154,536
1,517,912
193,251
3,952

1,374,895
188,928
1,563,823
197,909
2,538

1,242,991
268,984
1,511,975
213,401
270

1,298,304
3,082,354
4,380,658
3,045,961
13,988

1,633,579
3,134,345
4,767,924
3,462,502
7,118

1,320,709

1,363,376

1,298,304

1,320,709

1,298,304

297,413
24,192
321,605
27,241
228

302,769
18,032
320,801
23,388
-

204,694
43,041
247,735
41,434
123

206,178
631,883
838,061
542,142
1,785

220,745
553,502
774,247
567,468
601

294,136

297,413

206,178

294,136

206,178

# 2,287,387
162,640
81,039
$ 2,531,066

$ 2,085,976
170,779
70,131
# 2,326,886

# 2,900,314
181,153
124,065
# 3,205,532

$ 35,128,745
2,683,840
1,620,264
# 39,432,849

$ 39,699,403
3,085,842
1,701,378
# 44,486,623

Fiscal Year
1938
1937

19,419,402

20,008,678

38,510,015

319,754,401

441,869,976

$ » I , 9 50.468

$ 2 2 ,3 3 5 ,5 6 4

$ 4 1 ,7 1 5 ,5 4 7

$ 3 5 9 ,1 8 7 ,2 5 0

$ 4 8 6 ,3 5 6 ,5 9 9

TREASURY DEPARTMENT
Washington
Press Service
No. 14-22

¡FOR release , m o r n i n g n e w s p a p e r s ,
Monday, A u gu st 8 , 1 9 3 8 . ____________

1-6-38
Commissioner of Customs James H. Moyle today issued the followii^ statement
showing imports of distilled liquors and wines, and duties collected thereon, covering the month of June, 1938, with comparative figures for the months of June, 1937,
bd May, 1938, and the fiscal years 1937 end 1938:

¡DISTILLED l i quors
I(Proof Gallons)
Stock in Customs
IBonded Warehouses
Iat beginning ••. •
Total Imports (Preo
Iand Dutiable) .••
Available for Con—
[sumption.........
Entered into Con­
sumption (a) .....
Stock in Customs
Bonded Warehouses
Iat end.........
STILL WINES
(Liquid Gallons)
Stock in Customs
Bonded Warehouses
at beginning .....
[Total Imports (Free
and Dutiable) ....
Available for Con—
[sumption ........
[Entered into Con­
sumption (a) ....
Stick ih Customs
Bonded Warehouses
at end.........
[sparkling WINES
(Liquid Gallons)
ptock in Customs
Bonded Warehouses
at beginning .....
Total Imports (Preo
aad Dutiable)....
Available for Con­
sumption .......
Entered into Con­
sumption (a) ....
in. Customs
Bonded Warehouses
at end ..
COLLECTED ON:
j^stilied Liquors
Still Wines
Sparkling Wines
1*5 ?uties ColJfcted on Liquors

Fiscal Year
1937

June
1938

May
1938

June
1937

1938

3,517,231

3,616,086

3,771,454

3,863,839

3,706,839

903,599

749,553

1,298,096

13,977,379

16,402,696

4,420,830

4,365,639

5,069,550

17,841,218

20,109,535

924,466

843,488

1,191,295

14,257,855

16,138,202

3,493,666

3,517,231

3,863,839

3,493,666

3,863,839

1,363,376

1,374,895

1,242,991

1,298,304

1,633,579

154,536

188,928

268,984

3,082,354

3,134,345

1,517,912

1,563,823

1,511,975

4,380,658

4,767,924

193,251

197,909

213,401

3,045,961

3,462,502

1,320,709

1,363,376

1,298,304

1,320,709

1,298,304

297,413

302,769

204,694

206,178

220,745

24,192

18,032

43,041

631,883

553,502

321,605

320,801

247,735

838,061

774,247

27,241

23,388

41,434

542,142

567,468

294,136

297,413

206,178

294,136

206,178

duties

$2,287,387
162,640
81,039
$2,531,066

$2,085,976 $2,900,314 $35,128,745 $39,699,403
170,779
181,153
2,683,840
3,085,842
70,131
124,065
1,620,264
1,701,378
$2,326,886

$3,205,532

$39,432,849

(a) Including withdrawals for ship supplies and diplomatic use.

$44,486,623

August 6, 1938

TOi Mr. Magill
PROM: Mr. Schwarz

£

4)

Por approval, please.

HHH

m

mi

R E C E I V E D

ftUG 8 - 1938

fteerni?
QWw«( the Unrfer

The A cting S ecreta ry pointed out that l i t e r a l translation
o f the foreign ta x laws had been a v a ila b le previously,
Vjlmlajq,
Sj KXSl
.»loadings** The need,
-anÿthing*,1^1lihffi*1TBT e aomw IL
explained, was fo r tra n s la tio n s by

O-/0 V>-tA!L 0 ^ O JU A s & ftd k , *

<3buX

4 LAjQ-*MIA£., ^

y j 6^ ^ i© -siit‘S5f*-:^ a f e e r s=;t h a ii f-fus—wo r ^i—
Mr. M a g i l l

V>^~AJOyr

experts who I*

said

OLAJfiU C^SMM^rfVS p

ismmasx& tax problems uuifl that

— d©£4®a t i ^~ng-t

that a5Bauu.fc iullumj IffinMJauWBBir

. OjLiL

J

the ‘Congressi *Ee Treasury and the
■ter
u>kAfi~ Épliljwdr _(m
taxpayers of the United S ta te s tbo t*!»" find hi»liqi#i
& a JL- f
» U W P^UO-S
pthè methods isecT abroah to solve some ofr -theco problems.
-

-■ -

■

„

-

—-

v

" ^ ^ b è ÿ ^ ^ È e ^ a s k of c o lle c t in g tra n sla tio n s o f the major foreign
tax laws a f t e r d iscu ssin g the need fo r such inform ation with
R epresentative Robert L . Doughton of horth C arolin a, who was then
Chairman o f the Jo in t Committee.

In a l e t t e r to 3 f e Secretary

Morgenthau in May of 1937, Mr. Doughton asked th a t the Committee
be supplied with the completed tr a n s la tio n s .

oooOooo

»*f % b
For immediate release
J&Tpm-Mon ■j y

P ■ 'Î

Acting Secretary of the Treasury Boswell
•tgill was notified today hy the Joint Ctommittee on Internal Revenue
Taxation of the Congress that it

~hnt.fi the first

of a series of translations of foreign tax laws prepared under yM&t*.
- Adta.
>■
dbs

Initial statutes^ come off the presses,
fr,-P-F nr
of Sweden.“

'timfi( are the 11Inheritance and Grift Tax Laws

In preparation for the use of the^Joint Committee are

the French, German and Dutch income tax laws * inmcL Revenue measures
of other foreign countries will he edited for publication as accept­
able translations become available.
“This material w i M be of genuine value in
the formulation of future tax legislation,“ Mr. Magill said
today.

“There has been a growing tendency in our revenue hearings

mmm. and in outside discussions to refer

to the *Dutch system1

or the 'Swedish system* of handling this or that problem, but when we
tried to ¿¡tailmmk discover just what the system was, we frequently
found ourselves in the dark because we lacked adequate translations#
\ ajc ColA jl^

§JfjOLs<dt

^

sU JtcacL

‘

TREASURY DEPARTMENT
Washington
OR IMMEDIATE RELEASE,
lionday, August 8, 1938.

Press Service
No. 14-23

Acting Secretary of the Treasury Roswell Magill was notified today hy the
point Committee on Internal Revenue Taxation of the Congress that it has begun to
[istribute the first of a series of translations of foreign tax laws prepared
der the supervision of the Department.
Initial statutes to como off the presses are the '»Inheritance and G-ift Tax
aws of Sweden«"

In preparation for the use of the Treasury and Joint Committee

fere tho French, German and Dutch income tax laws.

Revenue measures of other foreign

Countries will be edited for publication as acceptable translations become avail—
able.
"This material should be of genuine value in the formulation of future tax
legislation," Mr* Magill said today.

"There has been a growing tendency in our

levenuG hearings and in outside discussions to refer to the *Dutch system* or the
¡Swedish system* of handling this or that problem, but when wo tried to discover
lust what tho system was, we frequently found ourselves in the dark because we
lacked adequate translations.

Further, in cases arising under our own revenue

Jaws, the exact meaning of some foreign tax statute is often involved."
The Acting Secretary pointed out that literal translations of some of the
foreign tax laws had been available previously, but that they were generally out—
I

frequently misleading.

The need, he explained, was for translations

| GXPQr^s who wore familiar with technical tax terns as used in the United States,
| well as abroad; and who could hence prepare a "really accurate translation."
Mr. Magill said that since many tax problems are common to all nations, it
s

likely that the Congress, the Treasury and the taxpayers of the United States

; 4 find it helpful to compare with our own laws tho methods used abroad to
olve

similar problems.

The Treasury began the task of collecting translations

- 2 -

of the major foreign tax laws after discussing the need for such information with
Representative Robert L. Doughton of North Carolina, who was then Chairman of the
Joint Committee.

In a letter to Secretary Morgenthau in May of 1937, Mr. Doughton

asked that the Committee he supplied with the completed translations.-

— 0O0—

f s s is t m r d epa bm sh t

TREASURY DEPARTMENT

IMPORTS OF DOUGLAS FIR, WESTERN HEMLOCK AND RED CEDAR SHINGLES
UNDER THE QUOTA PROVISIONS OF THE CANADIAN TRADE AGREEMENT
Preliminary Figures as of July 30, 1938

Customs Districts

TOTAL IMPORTS
Percent of Quota

r
January 1 to July 30, 1938
: Sawed Timber & Lumber Not Specially Provided For
WESTERN t MIXED FIR : .TOTAL FIR
: DOUGLAS :
HEMLOCK
: & HEMLOCK r & HEMLOCK
: FIR
:
(Bd. Ft.)
(Bd.Ft.) : (Bd. Ft#) :
1 (Bd,Ft*) :
60,199,289

14,800,785

16,657,899

745,766
38,059
931,823
2,538,517
»
346,949
6,852,976
231,647
-

•
•
58,525
16,598,624
•
•
150
-

91,357,313
36,

Ju ly I f

30, 19RED CED'
shingles!
uares

iss

368,588,

FROM CANADA
Alaska
Buffalo
Connecticut
Dakota
Duluth and Superior
Galveston
Los Angeles
Maine and N. H.
Massachusetts
Michigan
Minnesota
Montana and Idaho
New York
Philadelphia
Rhode Island
St. Lawrence
San Francisco
Vermont
Virginia
Washington

486,130
1,845,259
3,320,736
11,254,979
6,483,189
«r
13,643,718
99,958
6,012,386
54,875
13,991
13,244
9,266,369
530,883
35,512
260,315
268,815
•
7,208,870

as

•
1,837,730
668,879
as

32,000
276,439

486,130
1,991,025
3,358,795
12,186,802
9,021,706
14,049,192
99,958
12,865,362
286,522
•
13,991
16,611,868
11,104,099
1,199,762
35,662
260,315
300,815
7,485,309

631

7,6131
158,668

41,214
14,456
4,087

748
12 , 79?]

4,115
1 , 17«

iM
6,364
1 , 00«
119,5651

♦Quantity allowable under quota for last six months of the calendar year 1938, no*
yet announoed.

(Compiled by the Division of Statistics and Research, Bureau of customs)

Ike Commissioner of Customs today announced preliminary figures
for imports of Douglas fir, Western hemlock and red cedar shingles,
under the quota provisions of the Canadian Trade Agreement, as of
July 30, 1938, and the percentage that such imports hear to the
totals allowable under the auota provisions, as follows:

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, August 9, 1938.

Press Service
Ho. 14-25

The Commissioner of Customs today announced preliminary figures for imports
of Douglas fir, Western hemlock and red cedar' shingles, under the quota provisions
of the Canadian Trade Agreement, as of July 30, 1938, and the percentage that such
imports hear to tho totals allowable under-the quot-a provisions, as follows:

Customs Districts

TOTAL IMPORTS
Percent of Quota

January 1 to July 30, 1938
:Sawed Timber & Lumber Hot Specially Provided For
: DOUGLAS ï WESTERN : MIXED FIR : TOTAL FIR
:
FIR
:
HEMLOCK : & HEMLOCK î & HEMLOCK
î (Bd.Ft.) î
(Bd.Ft.) : (Bd. Ft.) î (Bd. Ft.)
60,199,229

14,500,785

486,130
1,245,259
3,320,736
11,254,979
6,483,189

745,766
38,0o9
931,823
2,538,517

16,657,299

91,357,313
36.5$

:
:
:
:

July 1 to
30, 1938
RED CEDAR
SHINGLES
(Squares)
368,588*

FROM CAHADA
Alaska
Buffalo
Connecticut
Dakota
Duluth & Superior
Salves ton
Los Angeles
Maine and H.H.
Massachusetts
Michigan
Minne so ta
Montana and Idaho
Row York
Philadelphia
Rhode Islan d
St. Lawrence
San Francisco
Vermont
V irginia
Washington

—
—
-

'

486,130
1,991,025
3,358,795
12,186,802
9,021,706

m
13,643,718
99,958
6,012,386
54,875
13,991
13,244
9,266,369
530,883
35,512
260,315
268,815
7,208,870

346,949
6,852,976
231,647
—
—

58,525
—
—
—
—

16,598,624

1,837,730
668,879
—

150

32,000

—
**

276,439

-

14,049,192
99,958
12,865,362
286,522
.
13,991
16,611,868
11,104,099
1,199,762
35,662
260,315
300,815
7,485,309

63
7,513
-

152» 668
41,214
14,456
4,027
if

742
12,797
4,115
1,744
1,170
1,150

6,264
1,000
119,565

Quantity allo w able under quota f o r l a s t s ix months o f th e ca len d a r y ear 1938, not
yet announced«
— oOO'

IMPORTATIONS OF CATTLE, CREAM AND CERTIFIED SEED POTATOES
UNDER THE QUOTA PROVISIONS OF THE CANADIAN TRADE AGREEMENT
Preliminary Figures as of July SO, 1938

Customs District

Jaamary 1 to July SO, 1938
CATTLE
; CATTLE 700# : DAIRY COWS
UNDER 175# : OR MORE
: 700# OR MERE
(Head)
? (Head)
:
(Head)

TOTAL IMPORTS
Percent of Quota

32,040
61*7#

53,795
34*5#

3,187
15*9#

FROM CANADA
Alaska
Buffalo
Chicago
Dakota
Duluth & Superior
Florida
Maine & N. H.
Massachusetts
Michigan
Minnesota
Montana & Idaho
New York
Oregon
Philadelphia
St. Lawrence
Termont
Virginia
Washington
Total from Canada

4,849
113
1
71
42
1,348
54
14,749
5,383
373
2.994
29,977

6,041
199
1,844
33
•
19
19
2,162
11,682
2,310
101
159
225
138
2.829
27,761

4
26
7
221
1
23
466
2,174
265
3,187

FROM MEXICO
Arizona
El Paso
San Antonio
San Diego
Total from Mexico

751
741
561
10
2,063

7,157
15,248
2,610
1,019
26,034

-

-

-

FROM OTHER COUNTRIES
Puerto Rico
New York

-

m*

CREAM
(Gal.)
4,799
0*3#

1

106

63

5
4,328

4,397

327
75

(Prepared by Division of Statisties and Research, Bureau of Customs)

«Hie Commissioner of Customs today announced preliminary figures
for imports of cattle, cream and certified seed potatoes, under the
quota provisions of the Canadian Trade Agreement, as of July 30,
1938, and the percentage that such imports bear to the totals
allowable under the quota provisions, as follows:

OFFICE OF THE COMMISSIONER OF CUSTOMS

AUG 1

Sta

o 1938

MR. GASTON
(Attention of Mr. Schwarz, Room 289, Treasury Building)
FROM THE ACTING COMMISSIONER OF CUSTOMS :
There is attached for immediate release a tabulation showing
imports of cattle, cream and certified seed potatoes, under the
quota provisions of the Canadian Trade Agreement, as of July SO,
1938.
When the release has been mimeographed, please have 135
copies forwarded to Miss Henry, Room 415, Washington Building*

TREASURY DEPARTMENT
Washington

Î0H RELEASE, MORNING NEWSPAPERS,
Wednesday, August 10, 1938._____
8-9-38

Press Service
No. 14-26
'

The Commissioner of Customs today announced preliminary figures for imports
of cattle, cream and certified seed potatoes,’ under the quota provisions of the
Canadian Trade Agreement, as of July 30, 1938, and the percentage that such im~
ports bear to the totals allowable under the quota provisions, as follows!
•
•

Customs
District

!
!
:
!

Dec.l, 1937 to
July 30, 1938
January 1 to July' 30, 1938
WHITE
OR IRISH
CATTLE 700# : DAIRY COWS :
CATTLE
UNDER 175# : OR MORE
: 700# OR MORE ; CREAM ! SEED POTATOES
(Pounds)
(Head)
: (Gal.)!
(Head)
!
(Head)

TOTAL IMPORTS
Percent of Quota

•
•
•

•

.

32,040

61.7$

PROM CANADA
Alaska
Buffalo
4,849
Chicago
Dakota
113
Duluth & Superior
1
Florida
Maine & N.H.
71
Massachusetts
Michigan
42
Minnesota
1,348
54
Montana & Idaho
Pfew York
14,749
Oregon
m
Philadelphia,
St, Lawrence
5,383
Vermont
373
Virginia
Washington
2,994
Total from Canada 29,977
mm

SiM MEXICO
Arizona
El Paso
San Antonio
San Diego
Total from Mexico

751
741
561
10
2,063

53,795
34.5$

—

6,041
199
1,044
33

3,187
15.9#

4,799
0.3#

1

4
26

-

-

«

7
—

««*

160,770

106
-

0
63

19
19
2,162
11,682
2,310
101
159
0
225
138

466
2,174

u

5
4,222
-

2,829
27,761

265
3,187

4,397

7,157
15,248
2,610
1,019
•26,034

—

221

30,958,594
68.8#

-

-

1

-

«

-

109,500
40,380
2,497,480
2,926,614
3,944,554
1,273,410

•*

-

23

-

-

-

-

m

—
-

-

-

327
75

-

18,774,846
m

415,316
800
40,280
761,944
12,700
30,958,594

-.
-

m
—

i m OTHER COUNTRIES
Puerto Rico
J«ow York

¿¡I
«

«
<— o0o~—

-

TREASURY DEPARTMENT
Washington
EOR RELEASE MORNING NEWSPAPERS
Monday
August
15 1938

PRESS SERVICE
N o . 14-27

Marshall R. Diggs, Acting Comptroller of the Currency,
today announced the completion of the liquidation of 25 re­
ceiverships during the month of July, 1938.

This makes a

total of 1167 receiverships finally closed or restored to
solvency since the Banking Holiday of March, 1933.

Total

disbursements, including offsets allowed, to depositors and
other creditors of these 1167 receiverships, exclusive of the
42 restored to solvency, aggregated $462 388 063 00, or an
average return of 80.37 per cent of total liabilities, while
unsecured creditors received dividends amounting to an average
of 66.95 per cent of their claims.

Dividends distributed to

creditors of all active receiverships during the month of
July, 1938, amounted to $4 370 764 00. .Total dividends paid
and distributions to depositors of all receiverships from
March 16, 1933 to July 31, 1938, amounted to

$915 566 961 00.

~ 2 -

FIRST RATIONAL BANK, ROGERS, ARKANSAS;

This bank was placed in receivership January 13,1931.

Depositors and other creditors received, includ­

ing offsets allowed, $429 859 00, representing 66.67
per cent of total liabilities established.

Unsecured

depositors received dividends aggregating 52.55 per
cent of claims proved.

- 3 -

ALLIANCE NATIONAL BANK, CHICAGO, ILLINOIS:

This bank was placed in receivership June 15, 1932.

Depos­

itors and other creditors received, including offsets allowed,
$1 140 064 00, representing 76.04 per cent of total liabilities
established.

Unsecured depositors received dividends aggregating

37.2 per cent of claims proved.

HENRY NATIONAL BANK, HENRY,ILLINOIS:

A receiver was appointed for this bank under date of October
27, 1937, for the purpose of collecting a stock assessment cover­
ing deficiency in value of assets sold and/or completing unfinished
liquidation, depositors and creditors having been previously paid
in full by assumption of liabilities by another bank . Dividends
paid amounted to 31.487 per cent of claims proved, while total
disbursements by the Receiver, including offsets allowed, aggre­
gated $47 941 00, representing 75.26 per cent of total liabilities.

FIRST NATIONAL BANK, SECOR, ILLINOIS:

This bank was placed in receivership

February 6, 1933.

itors and other creditors received, including offsets allowed,
$107 033 00, representing 70.55 per cent of total liabilities

Depos­

- 4 -

established.

Unsecured depositors received dividends aggregat­

ing 53. per cent of claims proved.

FIRST-STERLING- NATIONAL BANK, STERLING, ILLINOIS:

This bank was formerly in conservatorship.
placed in receivership March 29, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $1 441 850 00,
representing 100.51 per cent of total liabilities established.
Regular creditors received dividends aggregating 100 per cent
principal plus an additional interest dividend of 1 .64 per cent.

FARMERS NATIONAL BANK, VIOLA, ILLINOIS:

This bank was formerly in conservatorship.
placed in receivership November 1, 1933.

It was finally

Depositors and other

creditors received, including offsets allowed, $245 335 00,
representing 103.64 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 100 per cent
principal plus an additional interest dividend of 4.9 per cent.

- 5 -

FIRST NATIONAL BANK, CHADWICK, ILLINOIS:

This bank was formerly in conservatorship.
placed in receivership January 12, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $197 100 00,
representing 85.76 per cent of total liabilities established.
Regular creditors received dividends aggregating 100 per cent
principal plus an additional interest dividend of 10.53 per
cent.

Deferred certificate holders received dividends aggregat­

ing 11.7 per cent.

-6-

AMERICA1T NATIONAL BAM, RUSHVILLE, INDIANA:

This hank was placed in receivership

April 25, 1933.

Depositors and other creditors received, including offsets
allowed, $611 092 00, representing 104.5 per cent of total
liabilities established.

Unsecured depositors received

dividends aggregating 100 per cent principal plus an addi­
tional interest dividend of 7.83 per cent.

Assets and

stockholders’ unpaid assessments having book values in the
respective aggregate amounts of $125 901 00 and $46 848 00
and cash in the snm of $1551 00 were transferred to an
argent elected by the shareholders.

CITIZENS NATIONAL B A M & TRUST COMPANY,
TERRE HAUTE, INDIANA:

This bank was placed in receivership December 17, 1931.
Depositors and other creditors received, including offsets
allowed, $992 374 00, representing 78.39 per cent of total
liabilities established.

Unsecured depositors received divi

dends aggregating 73.22 per cent of claims proved.

- 7 -

CARROLLTON NATIONAL BANK, CARROLLTON, KENTUCKY:

This hank was formerly in conservatorship.
placed in receivership April 25, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $666 878 00,
representing 82.36 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 76.54 per
cent of claims proved.

FIRST NATIONAL BANK, GREENUP, KENTUCKY:

This bank was formerly in conservatorship.
placed in receivership February 2, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $454 007 00,
representing 109 .54 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 100 per
cent principal plus an additional interest dividend of 5.5
per cent.

FIRST NATIONAL BANK, WHITESBURG, KENTUCKY:

This bank was placed in receivership June 17, 1932.

Depos­

itors and other creditors received, including offsets allowed,
$489 409 00, representing 86.64 per cent of total liabilities
established.

Unsecured depositors received dividends aggregating

82.7 per cent of claims proved.

>

FIRST NATIONAL B Ä , HAMPSTEAD, MARILAND:

This hank was placed in receivership March 10, 1933.
Depositors and other creditors received, including offsets
allowed, $728 948 00, representing 85.69 per cent of total
liabilities established.

Unsecured depositors received

dividends aggregating 83.1 per cent of claims proved.

/

CHEROKEE NATIONAL BANK, ST. LOUIS, MISSOURI:

This "bank: was formerly in conservatorship.
finally placed in receivership April 22 „ 1933.

It was
Depositors

and other creditors received, including offsets allowed,
$1 360 168 00, representing 78. per cent of total liabili­
ties established.

Unsecured depositors received dividends

aggregating 66.8 per cent of claims proved.

10

-

FIRST NATIONAL BANK, FAST RUTHERFORD, NEW JERSEY:

This hank was formerly in conservatorship.
placed in receivership March 1, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $501 918 00,
representing 89.19 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 85.8 per
cent of claims proved.

MAPLE SHADE NATIONAL BANK,
MAPLE SHADE, NEW JERSEY:

This bank was formerly in conservatorship.
placed in receivership August 23, 1933.

It was finally

Depositors and other

creditors received, including offsets allowed, $126 412 00,
representing 63.36 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 36.1 per
cent of claims proved.

11

-

FIRST NATIONAL BANK OF TRENTON,
BARNEVELD, NEW YORK:

This hank was formerly in conservatorship.
placed in receivership September 20, 1933.

It was finally

Depositors and other

creditors received, including offsets allowed, $353 230 00,
representing 84.32 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 75.1 per
cent of claims proved.

FIRST NATIONAL BANK, EL PASO, TEXAS:

This "bank was placed in receivership

September 4, 1931.

Depositors and other creditors received, including offsets
allowed, $6 162 644 00, representing 71.34 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 62.927 per cent of claims proved.

PAMPA NATIONAL BANK, PAMPA, TEXAS:

A receiver was appointed for this bank under date of
August 13, 1937, for the purpose of collecting a stock assess­
ment covering deficiency in value of assets sold and/or com­
pleting unfinished liquidation, depositors and creditors having
been previously paid in full by assumption of liabilities by
another bank.

Dividends paid amounted to 35.4 per cent of

claims proved, while total disbursements by the Receiver,
including offsets allowed, aggregated $33 422 00, representing
35.4 per cent of total liabilities.

NATIONAL WHITE HIVER B AUK, BETHEL, VERMONT:

This hank was formerly in conservatorship.
placed in receivership November 13, 1933.

It was finally

Depositors and

other creditors received, including offsets allowed,
$1 287 876 00, representing 99 .83 per cent of total liabili­
ties established.

Unsecured depositors received dividends

aggregating 100 per cent principal plus an additional interest
dividend of .1 per cent^i

FIRST NATIONAL BANK, ANAWALT, WEST VIRGINIA:

This hank; was placed in receivership October 15, 1931.
Depositors and other creditors received, including offsets
allowed, $183 802 00, representing 93.08 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 94 .3 per cent of claims proved.

BAYARD NATIONAL BANK, BAYARD, WEST VIRGINIA:

This bank was placed in receivership April 28, 1932.
Depositors and other creditors received, including offsets
allowed, $156 316 00, representing 89.54 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 88 .7 per cent of claims proved.

FIRST NATIONAL BANK, PINEVILLE, WEST VIRGINIA:

This bank was placed in receivership May 1, 1930.
Depositors and other creditors received, including offsets
allowed, $164 929 00, representing 57.27 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 43.7 per cent of claims proved.

- 15 -

OLD NATIONAL BANK, WAUPACA, WISCONSIN:

This Lank was formerly in conservatorship.
placed in receivership March 26, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $752 566 00,
representing 102.73 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 100 per cent
principal plus an additional interest dividend of 1. per cent.

CITIZENS NATIONAL BANK, WISCONSIN EAPIDS, WISCONSIN:
A receiver was appointed for this bank under date of
October 13, 1931, for the purpose of collecting a stock assess­
ment covering deficiency in value of assets sold and/or completing
unfinished liquidation, depositors and creditors having been
previously paid in full by assumption of liabilities by another
bank.

The receivership was thereafter finally closed under

date of March 21, 1933.

However, in order to dispose of certain

unfinished business the receivership was reopened under date of
February 8, 1938.

Dividends paid have now amounted to 100 per

cent of claims proved, while total disbursements by the Receiver,
including offsets allowed, have aggregated $228 004 00, represent­
ing 99.87 per cent of total liabilities.

Assets and stockholders’

unpaid assessments having book values in the respective amounts
of $40 004 00 and $22 278 00, and cash in the sum of $9086 00
have been transferred to an agent elected by the shareholders.

Page A

INSOLVENT NATIONAL BANKS LIQUIDATED AND FINALLY CLOSED
OH HE STOKED TO SOLVENCY DURING THE MONTH OF
JULY, 1938.

Name and Location of Bank«
First Batl Bunk
Rogers* Ark.
First Natl Bank
Chadwick, 111.

I—I3-3I
2 / 1 - - 12 - 3 U

$

h23

859 00

66.67

52*55

Ï 97 100 00

85.76

110*53
1 1 .7 *

Capital
Stock at
Date of
Failure.

$ 50 000 00

Cash, Assets,
Uncollected Stock
Assessments, etc*
Returned to Share­
holders* Agent.

$

000

50 000 00

000

200 000 00

000

l 1H0 06H 00

76.oH

3 7 .2

1/ 10 - 2 7 -3 7

H7 9U1 00

75.26

3 1 «**87

65:000 00

000

2—6— 33

107 033 00

7 0 .5 5

53 .

25 000 00

000

1 HHl 850 00

1 0 0 .5 1

101.6U

200 000 00

000

00

103.6H

10H.9

Ho 000 00

000

I0H.5

107.83

100 000 00

17H 300 00

200 000 00

000

60 000 00

000

2/ 3-r-29 - 3U
2/ 11 - 1— 33

in

6—I5-32

OJ

Alliance Natl Bank
Chicago, 111.
Henry Natl Bank
Henry, 111*
First Natl Bank
Secor, 111
First-Sterling NB
Sterling, 111.
Farmers Natl Bank
Viola, 111.
American Natl Bank
Rushville, Ind.
Citizens NB <& Tr. Co*
Terre Haute, Ind.
Carrollton Natl Bank
Carrollton, Ky.
First Natl Bank
Greenup, Ky.
First Natl Bank
Whitesburg, Ky*

Date %f
Failure*

Total
Disbursements
Including
Offsets Allowed.

Per Cent
Per Cent
Dividend
Total Dis­
Decided
bursements
to Total
Liabilities. Claimants.

335

‘*-25— 33

6II 092 00

12-17-31

992 37H 00

7 8 .3 9

7 3 .2 2

2/ U--25-3U

666 878 00

82.36

76

gj 2—1—3H

H5H 007 00

109.5H

1 0 5 .5

50 000 00

000

Ug9 U0 9 00

S6.6h

82.7

50 000 00

000

6— 17-32

.5 **

P age B

INSOLVJCNT NATIONAL BANKS LI^UIDATFD AND FINALLY CLOSFD
OR RSSTORFD TO SOLVENCY DURING THF MONTH OF
JULY,
1933

Name and Location of Bank.

Date of
Failure.

Per Cent
Dividend
Declared
to All
Claimants.

Capital
Stock at
Date of
Failure.

85. 6 9

83.1

3 6 O 168

00

78.

66.8

5 OI 9 1 8

00

39

.I9

85.8

50

126

U1 2

00

63.36

353

230

00

162

m

728

1

9*+8

50

000

Cash, Assets,
Uncollected Stock
Assessments, etc.
Returned to Shareholders* Agent.

«a-

$

00

$

6

Per Cent
Total Disbursements
to Total
Liabilities.

0
0

First Natl Bank
Hampstead, Md*
3— 10-33
Cherokee Natl Bank
St. Louis, Mo.
2 / 1*--2 2 - 3 3
First Natl Bank
Fast Rutherford, N.J 1 / 3 — 1 — 3 H
Maple Shade Natl Bank
Maple Shade, N. J.
2 / 3— 23-33
First Natl Bank of
Trenton
Barneveld, N. Y.
1 / 9- 20-33
First Natl Bank
9 — U— 3 1
FI Paso, Texas.
Pampa Natl Bank
Fampa, Texas
u 3- 1 3 - 3 7
Natl White River Bank
Bethel, Ft.
If 11-13-33
First Natl Bank
Anawait, W. Fa.
1 0 -1 5 - 3 1
Bayard Natl Bank
Bayard, W. Fa.
28-32
First Natl Bank
Pineville, W. Fa.
5 — 1 — ,30

Total
Disbursements
Including
Offsets Allowed.

000

200 000

00

000

000

00

000

36.1

50 0 0 0

00

000

8U . 3 2

75.1

Ho 000 00

000

00

71.3^

52.927

1 000 000 00

000

H22

00

35.^

35

876

00

.^

50

000 00

000

99.33

100.1

50

000 00

000

183 802 00

93.08

ÿ*.3

50

000 00

000

316 00

89-5^

ss.7

25

000 00

000

l6 U 929 00

57-27

^3*7

25

000 00

000

33
1 287

156

Page C

INSOLVENT NATIONAL BANKS LIQUIDATJ£D AND fINALLY CLOSED
OH RESTORED TO SOLVENCY DURING THE MONTH Of
JULY,
193S

Name and Location of Bank,

Date of
failure.

Total
Disbursements
Including
Offsets Allowed.

Per Cent
Total Disbursements
to Total
Liabilities.

Per Cent
Dividend
Declared
to All
Claimants.

Old Natl Bank
Waupaca, Wise.
Citizens N a d Bank

2/

2 6 - 3 **

$

752

566

00

Wisconsin Rapids, Wis. 1/ 2— S--3S ** 228 OOH 00 ]J

IO2.73

101.

9 9 .2 7

100.

Capital
Stock at
Date of
failure.

Cash, Assets,
Uncollected Stock
Assessments, etc.
Returned to SharehoIders1 Agent.

$ 50 000 00 $
***

100 000 00

000

71 36s 00

1/ —

Receiver appointed to levy and collect stock assessment covering deficiency in value of assets sold,
or to complete unfinished liquidation.

2j —

formerly in conservatorship.

(*) - Principal dividend payment to deferred certificate holders.
(**) — Date of reopening for the purpose of de-liWery to the shareholders1 agent of equity in assets.
(***) - In addition to 100 per cent principal dividend payment, the single creditor received payment of inter
est in full through the proceeds of c o l l a t e r a l c o l l e c t i o n s .
3/ — Including $73 335 00 reported on date of first closing March 21, 1933*

LIQUIDATION DATA

INSOLVENT NATIONAL BANKS
COMPLETELY LIQUIDATED AND FINALLY CLOSED
MONTH OF JULY 1938
DISPOSITION OF TOTAL COLLECTIONS

A
B
C
D

—
-

Dividend Payments
Other Cash Payments
Offsets Allowed
Unpaid Liabilities

$ 11,436,13.0 49 .3%
$ 5,254,844 22.6%

$
f»

2 , 098,808

/..JÎ2 9 .7 9 0

$ 23,219,632
TREASURY

D E P A R T M E N T

9 . 0£

1 9 - 1 %

INSOLVENT NATIONAL BANKS
DISPOSITION OF COLLECTION DOLLAR (INCLUDING OFFSETS ALLOWED) IN
CLOSED RECEIVERSHIP BANKS THE LIQUIDATION OF WHICH HAD BEEN COMPLETED
TO

1,125 Receiverships Liquidated and Closed
period March 16, 1933 to July 31, 193$

TREASURY

D E P A R T M E N T

2,236 Receiverships Liquidated and
Closed April U , 1865 to July 31, 1938

IMPORTS OF COMMODITIES FROM THE PHILIPPINES UNDER QUOTA.
PROVISIONS OF PHILIPPINE INDEPENDENCE ACT AND CORDAGE ACT OF 1935
Preliminary Figures, as of July 30, 1938

January 1 to July 30, 1938
: REFINED : UNREFINED
SUGAR
:
î COCONUT OIL : SUGAR
(Pounds)
(Pounds) :
;
(Pounds)
:

Customs District

TOTAL IMPORTS
Per Cent of Quota
Hawaii
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
San Francisco
Virginia
Washington

203,669,132
45.5%
18,238
5,095,154
1,325,850
39,557,122
31,451,770
106,021,509
6,644,920
72,564
12,809,657
672,348

69,303,268 1,334,143,140
74.4%
61.9%

16,991,670
-

20,968,556
31,343,042

15,773
473,805
146,181,726
65,511,770
206,689,159
522,144,679
61,596
355,934,445
37,074,615
55,572

: May 1 to Juli
:
30, 1938
CORDAGE
:
(Pounds)
î
336,122
5.6%
57,341
69,341
10,832
75
•
12,704
4,959
161,078
8,497
11,295

(Prepared by Division of Statistics and Research, Bureau of Customs)

The Commissioner of Customs today announced preliminary
figures for imports of commodities coming into the United States
from the Philippine Islands under the quota provisions of the
Philippine Independence Act, during the period January 1 to
July 30, 1938, and under the Cordage Act of 1935, during the
period May 1 to July 30, 1938, also the percentage that such im­
ports bear to the totals allowable under the quota provisions,
as follows:

TREASURY DEPARTMENT
Washington
JOR RELEASE, MORNING- NEWSPAPERS,
Thursday, August 11, 1938.
8-10-38

Press Service
No. 14-28

&he Commissioner of Customs today announced preliminary figures for im­
ports of commodities coning into the United States from the Philippine Islands
under the quota provisions of the Philippine Independence Act, during the period
January 1 to July 30, 1938, and under the Cordage Act of 1935, during the period
May 1 to July 30, 1938, also the percentage that such imports hear to the totals
allowable under the quota provisions, as follows:

Customs District
total imports

Per Cent of Quota
Hawai i
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
San Francisco
Virginia
Washington

:
January
:
: COCONUT OIL
i
(Pounds)
203,669,132
45.5$
18,238
5,095,154
1,325,850
39,557,122
31,451,770
106,021,509
6,644,920
72,564
12,809,657

1 to July 30, 1938
:
: REPINED : UNREFINED
SUGAR
:
:
SUGAR :
: (Pounds) : (Pounds)
î
69,303,268 1,334,143,140
61.9$
74.4$

16,991,670
■ —
-

—
20,968,556
—

15,773
473,805
146,181,726
65,511,770
206,689,159
522,144,679
61,596
355,934,445

—

37,074,615

»-»

«è

672,348

31,343,042

55,572

May 1 to July
30, 1938
CORDAGE
(Pounds)
336,122
5.6$
57,341
69,341
—
10,832
75
—

12,704
4,959
161,078
8,497
11,295

~ 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

August 15, 1958____ t 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 \vill 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 . & u g u s . t S R f i ________ •
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.

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

Uo loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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-r
aitions of their issue.

Copies of the circular may be obtained from

any Federal Reserve Bank or branch thereof.

TREASURY DEPARTMENT

EOR RELEASE, MORNING PAPERS,
Frid ay, August 12, 1938.
§& M 3M E B h c & & r n c r x j;x n x x

m

n m rr

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100,000,000, or thereaboutsrxi&jt
They will he 91 -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, August 15 f 1938

•

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated August 17, 1958

, and will

mature on November 1 6 f 1958, 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 F e d e ra l
Reserve Banks or branches upon application therefor.
Ho tender for an amount less than $1,000 will-'hew?eirsldered^
Each tender'must he in multiples of $1,000*

The price offered must te

expressed on the basis of 100, with not more than three decimal places,
e. g., 99.125.

Fractions mush hot he used«—

Tenders will be accopted.without cash deposit from in c o r p o r ­
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 hill0

TREASURY DEPARTMENT

FOR RELEASE, MORNING- PAPERS,
Friday, August 12, 1938,

The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the-mount of $100,000,000, or thereabouts.

They will he 91-day

tills; 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
(¡•clock p.n., Eastern Standard tine, on Monday, August 15, 1938.

Tenders will

not be received at the Treasury Department, Washington.
The Treasury bills will be dated August 17, 1938, and will nature on
November 16, 1938, 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 denomi­

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
tranches upon application therefor.
No tender for an amount less than $1,000 will be considered.
oust 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, o.g., 99.125.

Fractions must not

be used.
Tenders will be accepted without cash deposit from incorporated banks and
rust 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
spress guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on August 15, 1938
11 tenders received at the Federal Reserve Banks or branches thereof up to the
0Sin« ^our 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.
advised of the acceptance or rejection thereof.

Those submitting tenders will be
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 17, 1938.
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 inheritance taxes.

(Attention is invited to Treasury

Decision 4550, ruling that Treasury bills are not exempt from the gift tax.)

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 nay be obtained from any Federal Reserve Bank or branch thereof*

TREASURY DEPARTMENT
Washii^ton
FOB RELEASE MORNING NEWSPAPERS
Friday
August
12 1938

PRESS SERVICE
N o . 14-29

Acting Comptroller of the Currency Marshall R. Diggs, announced today
that the total assets of the 5248 active national "banks in the continental
United States, Alaska, Hawaii and the Virgin Islands of the United States on
June 30, 1938, the date of the recent call for statements of condition, amounted
to $30 387 082 000, an increase of $563 582 000, or 1 .89 per cent, over the
amount reported "by the 5256 active "banks as of March 7, 1938, the date of the
previous call, and an increase of $50 Oil 000, or .16 per cent, over the amount
reported by the 5299 active banks on June 30, 1937, the date of the correspond:ing call a year ago.
Loans and discounts, including overdrafts, totalled $8 334 624 000, in
comparison with $8 631 366 000 on March 7, 1938, and $8 812 895 000, on June 30,*
1937.
Investments in United States Government obligations direct and fully
guaranteed aggregating $7 987 716 000, decreased $104 446 000, or 1 29 per cent,
since March, and $231 479 000, or 2.82 per cent, since June 30 a year ago.
»Direct and indirect obligations held on June 30, 1938, were $6 510 362 000 and
$1 477 354 000, respectively.

Other bonds, stocks and securities held of

§3 656 560 000 which included obligations of States, counties and municipalities
pf $1 4X5 997 000, decreased $66 167 000, or 1.78 per cent, since March, and
¡$246 532 000, or 6.32 per cent, since June 30, 1937.
Balances with other banks and cash items in process of collection of
|v8 922 250 000, including reserve with Federal Reserve banks of $4 618 177 000,
showed an increase of $974 169 000 since March 7, and increased $988 979 000
in the year ♦ Chsh in vault of $528 305 000 was $97 630 000 more than in March
and $03 7 Q7 ooo more than the amount held a year ago.
Total deposits on June 30, 1938, aggregated $36 815 894 000, the highest
since

December 31, 1936, when the 5331 active banks reported deposits totalling

V <’3^ 608 397 000 . Deposits on the recent call date showed an increase of
. -77 652 000 since March, and an increase of $49 981 000 since June 30 last
year.

The aggregate of deposits on June 30, 1930, consisted of demand and time

-

2

-

deposits of individual?, partnerships and corporations of $12 138 047 000 and
$7 548 099 000, respectively, United States Government deposits of $394 272,000, State, county and municipal deposits of $2 106 342 000, postal savings

deposits of

$73 066 000, deposits of other "banks of$4 211 101 000, and

certified and cashiers* checks, cash letters of credit and travelers* checks
outstanding, etc., of $344 167 000 . Deposits evidenced by savings pass books
amounted to $6 630 177 000, which represented 15 941 369 accounts.
The unimpaired capital stock was $1 572 900 000, representing a par value
of $1 577 421 000.

The latter figure consists of Class A preferred stock of

$240 805 000, Class B preferred stock of $17 210 000, and common stock of
$1 311 326 000 .
Surplus of $1 118 413 000, undivided profits of $409 167 000, reserves for
contingencies of $159 309 000 and preferred stock retirement fund of $14 030 000,
a total of $1 700 919 000, increased $19 457 000 since March and $70 885 000
since June last year.
Bills payable of $7 731 000, and rediscounts of $1 289 000, a total of
$9 020 0 0 0 ,

showed a decrease of $4 246 000 since the previous call, but an

increase of $490 000 in the year.
The percentage of loans and discounts to total deposits on June 30, 1938,
Was 31 DO, in comparison with 32.90 on March 7, 1938, and 32.93 on June 30,:1937.

Statement showing comparison o f p rin c ip a l items of a s s e ts and l i a b i l i t i e s of a c tiv e n a tio n al banks
as o f June 30* 1938* March 7 » 1938, and June 30, 1937
(in thousands o f d o lla r s .)
•
June 30»
•
1938
a
5 2*48
•

1

Number o f banks. *.........
ASSETS
Loans and d iscou nts, includ ing overd rafts
U. S. Government s e c u r itie s :
D irect o b lig a tio n s ..
O bligations f u lly guaranteed ..................................
S ta te , county, and municipal o b lig a tio n s
Other bonds, sto ck s, and s e c u r itie s
T otal loans and investments
Reserve with Federal Reserve banks
Cash in v a u lt......
Balancée with oth er banks
T otal reserve with Federal Reserve banks, cash,
and balances with other banks...
Other a s s e t s .......
T otal a s s e ts ....
LIABILITIES
D eposits o f in d iv u als, p artn ersh ip s, and corporation s:
Demand
Time
x o sta l savings d eposits
U. S. Government deposits
S ta te , county, and municipal d eposits
Deposits o f oth er banks
C e rtifie d and cash iers* checks, cash l e t t e r s of c r e d it ,e t c *
T o tal deposits
Bills payable
Rediscount s

$

#
•
•' March 7•
#
•’
1938
•

s 33*4 62 U $
6 510 362
1 ^77 35 1*

1
2
19
*4

>*15 997
2*40 563
978 900
6lS 177
52 S 305
*4 30 H 073
9 U50 555

997 627
30 387 082

12 138 0*47
7
899
73 066
39ft 272
2 106 3*42

*4 211 101
167
26 818 89*4
7 731
1 289

•
•

î
:
•

5 256

: In crease or decrease : In crease or decrease
June 30, : sin ce k a r. 7 , 1938 : sin ce June 30,1937
1937
1
Amount
: 1 e r Cent : Amount
: 1 e r Cent
•
-8
5 299
- .1 5
- .9 6
-51

8 631 366 $ 8 812 895
6 771
1 320
1 *450
2 272
20 *4*46
*4 282
*430

752
*410
021

706
255
582
675

6 902 521
1 316 67*4
1 H51 629

3 665 *499

2 *451 *463
20 935 182
*4 152 889
*44*4 598
3 780 382

8 378 756
998 *489
29 823 500

8 377 S 69
1 024 020
30 337 071

11 893 101

12 *430
7 U69
88
379

7 531 158
79 270
*405 629

2 0*4*4 926
3 922 807

271 351
26 238 2*42
1 2 36 2
90h
CS e e

Tiase

23

183
8*42
5*42
331
2 203 *466
3 790 587
*403 962
26 765 913
7 968
562

$

-296 7*42
- 2 6 1 390

- 3 .8 6

156
-3*4
-3 2
-1*67
335

9*4*4
02*4
l>t3
355
595

1 1 -8 9
- 2 .3 5

97 630
638 57 U

2 2 .6 7
1 7 . *42

- l .U l
-2 .2 9
7 .8 4

$ -*478 271

- 5 .U3

-3 9 2 159
160 6 so

* 5 .6 8

- 3 5 632

-2.*45
- 8 .6 0
-*4*57
1 1 .2 0
18.83
13.85

-2 1 0
-9 5 6
*465
83
523

900
282
288
707
691

1 071 799
-4 0 862
563 582

12*79
-* 4 .09
1.8 9

1 072 686

2*4*4 9*46

2 .0 6

17 7^1
-6 20*4
-1 0 1 357

.2*4
-7 .8 3
-20.*45
3 .0 0
7*35
26.83

- 2 9 2 136
79 057
- 1 5 *476

61 *416
288 29*4
72 816

-6 6 393
50 Oil

1*4
-97
*420
-5 9

9*41
12*4
51*4
795

5 77 6 32

2.20

*49 981

- 4 631
325

-•37.^6

-237
727

U 2 .5 9

1 2 .2 0

1 2 .8 0
-67*48
.1 6

- 2 .3 5
I .0 6
- 17.*48
3*9*1
-*4.*41
11.09
-1*4.80
.19
-2 .9 7
1 2 9 .3 6

1
1

1

I
I
I
I
■
1
M

Comparison o f p rin c ip a l item s o f a s s e ts and l i a b i l i t i e s of n ation al banks— Continued

lä g e 2

(In thousands o f d o lla rs )
♦•
: June 30#
:
1933
•
♦

•
•
5 March 7»
î
1938
•
•

LIABILITIES - Continued
C apital stock (book v a lu e ).....
Su rp lu s...............
P r o f it s and reserves
T otal c a p ita l accou n t............................................
Other l i a b i l i t i e s
T otal l i a b i l i t i e s .......

$ 1 572 900
l U S Hi 3
582 506
.... 3 273 S19
2SS 3^9
30 387 0S2

$ 1 575 S98
1 106 ¡+95
57 H 967

3 257 360
3 Ä 632
29 823 500

•
! June 30*
1937
:
«

ft•

•
• In crease or decrease
l
since Mar. 7* 1938
! Amount : Per Cent
•
s
•

$ 1 582 131 $ - 2 99 s
11 91S
1 073 15^
556 SSO
7 539
3 212 165
16 H59
350 H63
-2 6 283
563 582
30 337 071

- .19
1 .0 8
1.31
.51
- S .3 5
1.S9

•
-2 9 H8
—
339
- 2 609

- 1 .1 7
—
.0 3
- .1 7

: In crease or decrease
¡s in c e June 30, 1937
: Amount
; Per Cent
»•
•
•
$ 9
U5
25
6l
-Ô2

llU

- .5 8
U.2 2
U. 6 0
1 .9 2
-1 7 .7 2

50 O il

.1 6

231
259
626
65 U

memoranda

Par value o f c a p ita l stock:
Class A p re ferred sto ck ...................
Class B p referred sto ck ..
Common stock
T o tal ............................................................................
R atio o f loans (inclu d ing o v erd rafts) to t o t a l
d e p o sits....
Per
R atio o f U. S. Gov't d ep osits to to ta l d ep osits-P er
R atio o f p o s ta l savings to to t a l d ep osits
P er
R atio o f U. S . G ov't and p o sta l savings
d ep osits to to t a l d ep o sits .
Per
R atio o f U. S . Gov't o b lig a tio n s held to
amount o u tsta n d in g .......
P er
D ir e c t.................................................................. P er
F u lly guaranteed as to in te r e s t and
n r in c in a l ...................................................... P er
Note:
Rote:

Minus sign denotes decrease
decrease.

2S1 012

2US SS5
17 210
1 311 326
1 577 H21

251 833
17 210
1 310 987
1 58 O 030

Cent
Cent
Gent

3 1 .OS
I.U 7
.27

32.90
1 .8 9
.3 0

3 2 .9 3
1 .H2

Cent

I . 7H

2 .1 9

1 .7 5

17 965

1 2SS 7^9
1 5S7 726

-3 2 127
-755
22 577
- 1 0 305

•33

Cent
Cent

1 9 .2 s
1 7 .3 0

19.39
I S . 26

2 0 .3 0

Cent

30.HU

28. H2

2S.0S

19

.2 s

s

-r u U 3
-H .2 0
1 .7 5
^ £ 5

F&ge nine
Industrial Hygiene

mercury; lead arsenate studies* silica analysisi,ialso the Division/

------\^3s*3^* ^

f

among other studies is making a preliminary) study of fatigue of j
bus and truck drives along three linesi
logical changes,

Visual changes, physio-J*

»logical changes associated with
sfcwwfciieawwsii^swisesÉSSicswssssgì^

continued driving*

fwK

Other studies of materials in industrial

occupations include a study of mica, feldspar and kaolin, a
manganese study, a lead- storage battery study*

A/

Research studies

"■»-<**

in progress include among others an investigation relating to the
solubility of lead arsenate in blood serum and a study of lead
arsenate on the g&stro-intestinal tract*

la June outstanding

studies were completed including dust hazards in the pottery
industry and determination of the particle size of industrial dust*
-coo-

B* StocktontFIS
3—(>*33

•f

Page eight
Industrial Hygiene

In the States (2) Surreys by field personnel

of

plant conditions

causing or suspected of causing . * occupational diseases in order
that the department »ay advise or make recommendation* for the control
of existing or potential health hazard»} (3 ) Arrangements for
securing and investigating reports of occupational diseases by the
division or bureau of industrial hygiene j (4) Arrangements for
securing reports of all diseases for which sick benefits are paid
by industrial sick benefit organisations in the State department
of

health! (5) Cooperation to provide a source of information

for other State departments, such as, industry, labor, insurance,
and medical interests, or any agency interested in industrial
hygiene! (6 ) Educational program to acquaint industry and various

attention to industrial dusts, specific industrial poisons such as
lead, radium, benzol, and carbon monoxidej also attention to
dermatoses, ventilation, illumination, and industrial morbidity
and mortality*
Among its studies are those of skin hazards in the refinibl
of lead, copper, gold, mid silver ore} studies of asbestos, pottery,

Page s e m i

Industrial igiene
Stmtm

are in process of ranking industrial hygiene surveys

of the number of plants and employes in the particular State sur­
veyed* concentrating on the Manufacturing* mechanical, and mineral
industries which are the most important fro® the viewpoint of specific
occupational hazards.

Provisions made for safety supervision,

medical services available, sickness records, and related date
connected with selected industries are tabulated*. Employes ere then
surveyed oeoupatlonally, the nature of their work is examined, and
the raw materiale or by-product® associated with their activity are
listed* From this investigation a preliminary survey of occupa­
tional exposure to- specific materials demonstrated through experience
to be inimical to health under certain conditions is available* The
surveys do not set forth the actual degree of exposure but an ex­
posure that exists which may be hazardous* Therefore only-from such
surveys can States ascertain the magnitude of their special in­
dustrial hygiene problem and cope with it according to m definite
policy and program*
Surveys of this kind have been completed in S statesi
Alabama, South Carolina, forth Carolina, Virginia, Pennsylvania,
Rhode Island, Maryland, and Utah* similar surveys ara underway
in 12 Statesi Maine, Ohio, Illinois* Indiana* Missouri, Arkansas*
Iowa, California, Colorado, Idaho, Tennessee, and flew Hampshire•
In cooperation with the Public Health Service, States
have agreed upon a uniform method of conducting each survey*
Certain minimum activities are essential*

(l) Preliminary surveys

to determine the scope and nature of the industrial hygiene probi«*

Fag« six
Industrial Hygiene

involved* the Public Health Service through the Conference was
able to furnish further assistance to States in the organisation
of their industrial hygiene division® and in the initiation of
State studies for the purpose of defining the nature and scope of
the problem»
During the past year the Division of Industrial Hygiene
gave consultation service® to 27 States about administrative and
technical subjects and sent its experts to 23 States one or sore
times upon request* Technical aid was also rendered in the evalua­
tion and control of health hazards in industry and on occasions
i
personnel from the Division conducted studies in selected industries
in cooperation with State and local personnel*
•V Lectures on the subject were delivered at two universities
9

designated by the Public Health Service a® training centers for
public health personnel» Brief courses were conducted in 7 States#
One of the serious problems confronting the Public Health Service
in connection with establishing industrial hygiene unit® in State
department® ©f health has been the shortage of trained personnel*
The practice of industrial hygiene and sanitation require® a
specialised training« A doctor or engineer undertaking this type
of work should not only have a thorough grounding in public health
work but should also be we 11-trained in subjects such as, ventilation»
illumination, industrial toxicology, dust determinations, and
various other specialised subjects pertaining to industrial health#
Qualifications for Service have been set up in cooperation with
'■ " ':<'r

State representatives*.

f.

Page five
Industrial Hygiene

or sore occupational diseases.

For many year® the State and

Provincial Health Authorities of Horth America sustained interest
in the problem through their Committee on Industrial Hygiene in
spite of a lack of State funds*
After the passage of the Social Security Act, the
Public Health Service in cooperation with this Committee inau­
gurated a program designed to establish industrial hygiene units
la the health departments of the various States*
Industrial hygiene facilities are provided in States
affecting 33,010,000 gainful workers* however, there are 16,000,000
persons for whom no such provisions have yet been made*
The Federal Division of Industrial Hygiene renders con­
sultative services to States upon their request*

It has behind it

many years of experience, research, «id findings in respect to the
problem, having published between 600 and 700 papers on the subject*
After the program was aggressively launched two years ago, the Public
Health Service held two seminars to introduce industrial hygiene
procedure and initiate the program*

These seminars culminated la

a national Conference on Governmental Industrial Hygienists which
convened la Washington, D* C*, the latter part of time this year*
Twenty-three States were represented, including a medical doctor
and an engineer from each State health department*

The Conference

resolved to maintain itself as & permanent organisation and to
promote uniformity of methods in tackling industrial hygiene.

&irie

preliminary committees were set up to deal with the various probless

Page four
Industrial Hygiene
given stimulating encouragement«
According to the census of 1930» a study of gainful workers
indicated that of 19»000,000 persons gainfully employed in the
United States, 15,000,000 were engaged in manufacturing, mechanical,
and mineral industries« It has been found that occupational exposures
known to exist among industrial workers embrace more than 500 materials
and conditions which m y be inimical ©r hasardons to health* Studies
of industrial workers conducted by the Public Health Service and
other agencies disclose clearly that certain of these workers
experience high morbidity and mortality rates and that the industrial
occupation is an important factor underlying the cause of excessive
illness and mortality rates*
On behalf of State and Territorial Health Officer#, the
Public Health Service ha® been instrumental In bringing about agree­
ments with the chemical industry covering certain poisonous material»
to protect those working in that Industry and also to those using
its products*
Standard© of health and safety are developed through
cooperative efforts of the public Health Service, Bureau of Mines#
labor Department, and American Standards Association* Industrial
hygiene cavers the scope of industrial safety, sanitation, and
general working conditions, and is of significant importance in
connection with the administration of workmen*s compensation laws*
All but

M

States have workmen*s compensation laws for accidental
JLt

#

injury, while — — -~rr-*— *'•1T ¡Ml States provide compensation for on©

Pag« three
Industrial Hygiene
are tackling the problem under their State departments of labor.
States which have not developed industrial hygiene activities aret
Hew Jersey, Delaware, Kentucky, Georgia, Florida, Louisiana,
Oklahoma, Nebraska, South Dakota, Horth Dakota, Montana, Wyoming,
Hew Mexico, Arizona, Hevada, and Oregon*
In a comparatively short time a majority of the States
have accepted "industrial hygiene" as a necessary obligation in the
protection of the health of the workers• The rapid development
of this phase of public health service indicates that industrial
hygiene is now regarded as a major health problem. It is a fact
that the incidence of diseases, such as tuberculosis, pneumonia,
and degenerative conditions associated with industrial environment,
is greater among industrial workers than the general population.
It also has been shown that the life expectancy of the industrial
worker Is less than that of the nn-industrial worker.
In recent years, large industrial establishments have
contributed to the protection of the health of the workers. How­
ever, since nearly 90 percent of the plants in the United States
employ less than 10 0 persons, many establishments are not prepared
to handle effectively the problem of industrial hygiene alone.
Hie protection of the health of the worker is coextensive
with Social Security and is an important health function and one "hiih
can be handled baft by a State or local health department in
cooperation with employers and workers and other agencies interested
in the problem. All groups have cooperated wholeheartedly and have

Page two
Industrial Hygiene
nineteen haw a separate division or bur«&u dealing with the problem,
Hine Ftaies include this health activity as a part of so»« division
in their State health departments*
Before the passage of the Social Security Act, Title VI
of which authorises an annual appropriation of 18,000,000 as a
grant-in-aid to States for the improvement of their health services
and an additional #2,000,000 to the Public Health Service for
disease and sanitation investigations, #30,877 was expended annually
by States on industrial hygiene* The annual budgets of 30 States,
as of June 1938, for industrial hygiene now total #612,276.
Under the impetus of the Division of Industrial Hygiene
by means of the grants-in-aid from the Social Security Acts 20
States since 1936 have set up industrial hygiene activities and 6
limited activities under their State health departments* These
activities are handled by appropriate divisions under the depart­
ment of labor in 2 States* Thus far only 16 of the

i&

States are

without industrial hygiene service*
Connecticut, Maryland, Ohio, and Mississippi were the
A

State! interested on the problem prior to 1936* The 20 States

which have established industrial hygiene activities since then are*
Hew Hampshire, Vermont, Rhode Island, Pennsylvania, West Virginia,
Virginia, Worth Carolina, South Carolina, Alabama, Tennessee,
Indiana, Michigan, Wisconsin, Iowa, Illinois, Missouri, Kansas,
Texas, Washington, and California* The 6 States which have limited
activities under a health department are* Maine, Minnesota,
Arkansas, Colorado, Utah, *nd Idaho* Massachusetts and Hew York

L

TBMSDHI BIPARTSEBT
0* 5* Public Health Service
Washington

Industrial Hygiene in the United States
FOB BXUU5E
Saturday* August i h . i m
On© of the most rapid developments in the field of public
health resulting from appropriations provided under the Social
Security Act is that of Industrial Hygiene*
Thirty-two State» in cooperation with the Public Health
Service are attacking the problem and 20 have lined up in conducting
various surveys to ascertain occupational hasards to which workers
are subjected#
For the first time States, employers, and employes in
conjunction with the United States Health Service are systematically
amassing on a nation wide scale, State by State, authoritative
scientific data on the occupational conditions under which employes
work and the extent of danger to health involved#
This activity of the Public Health Service is carried on
by its Division of Industrial Hygiene whose purpose is to develop
means for the protection and improvement of the health of the work­
ing population# In cooperation with State health agencies, industry,
and workers, it conducts field Investigations, engages in laboratory
research, and renders State health departments various consultative
services#
Only 4 States prior to 1936 had established industrial
hygiene as a part of their health functions# How 32 States have set
up

some kind of an agency responsible for industrial hygiene*

TREASU RY

DEPARTM ENT

U. S . P U B L IC HEALTH SE R V IC E

MEMORANDUM
date

fro m :

Philip S. Broughton

TO:

Mr, Charles Schwartz,

August 10/ 193S.

Treasury Department.

Here is the first of our three releases on the Third
Anniversary of the Social Security Act,

It deals with Industrial

Hygiene and has been read and approved by Dr, Neal and Mr*• Bloomfield
of the Industrial Hygiene Division in the absence of Dr, Sayres,
and by Dr, Olesen and myself. This is for Friday afternoon release.
Another release summarizing the Research of the Service
has been prepared for Saturday morning and will follow shortly.
The third release summarizing the Advances in Public
Health Facilities throughout the United States will follow for
Sunday morning, August 14-th.

PSB:MG
Copy to Dr. Olesen

Press Service No. 14-30, Page 5, line 21 - 41while approxi­
mately fifteen provide», should read »while approximately
twenty-one provide44, etc.

TREASURY- DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE, AFTERNOON PAPERS,
Friday, August 12, 1938,______
8-11-38

Press Service
No. 14- 30

With the approach of the third anniversary- of the Social Security Act,
officials of the United States Public Health Service today said that one of the
most rapidly expanding phases of national health improvement under the Act is
its program for industrial hygiene.
Passage of the Act, said the Public Health Service officers, gave the
health of protected workers an accentuated economic importance.

Working through

State health agencies, industry and employees, the Service*s Division of Indus­
trial Hygiene conducts field investigations, engages in laboratory research and
acts as consultant to State health departments.
Now, for the first time, workers, employers, and the States themselves
arc cooperating with the Public Health Service in the compilation of scientific
data on occupational hazards of labor*

Thirty-two States already are attacking

these problems, and a score are conducting specific surveys to determine their
nature and the dangers to health involved.
Prior to 1936, only four States— Connecticut, Maryland, Ohio and Mississ­
ippi— had established industrial hygiene units.

Under the impetus of the Division

°f Industrial Hygiene, and through grants-in-aid from the Social Security Act,
twenty States since 1936 have set up industrial hygiene activities, and six have
^e§un limited activities under their State health departments*
These activities are handled by appropriate divisions under the Departments
Labor in two States; nineteen have a separate division or bureau dealing with
problem; and nine include the industrial problem as a part of some division
their State health departments*

Thus far, only a third of the forty—eight

8S are without some sort of industrial hygiene service.

-

2

-

||

.

.

Before the passage* of the Social Security Act, which authorizes an annual
appropriation of $8,000,000 as a grant-in-aid' to' States for the improvement of

j

their health services, and an additional $2,000*000 to the Public Health Service
for disease and sanitation investigations, $30,877 was expended annually by States

| on industrial hygiene.

As of June, 1938, the annual budgets of thirty States for

industrial hygiene totaled $612,276*
In a comparatively short time, then,:a majority of the States have accepted
protection of the welfare of their workers as a major health problem.

It has been

established that the incidence of diseases, such as tuberculosis, pneumonia, and
degenerative conditions associated with industrial environment* is greater among
ndustrial workers than the general population.

It also has been shown that the

life expectancy of the industrial enployee is less than that of the «white-collar«
I worker.
In recent years, largo industrial establishments have more and more contri—
I tuted to the protection of the health of the workers.

However, since nearly 90

I percent of the plants in the United States still employ less than 100 persons,
I ciany establishments are not prepared to handle the problem of industrial hygiene
I

vely alone.

Thus, since the protection of the health of the worker is

I ’nvolved with Social Security, it is a function which it is believed can be handled
I
I

by State or local health departments in cooperation with employers, workers,
interested agencies.

Industrial hygiene facilities are provided in

I states affecting 33,000,000 gainful workers.
I

There are.still 16,000,000 persons,

ever, for whom no such provisions have yet been made.
ording to the latest census, 15,000,000 U. S. workers are engaged in

I anufacturing, mechanical, and mineral industries.

It has been found that occupa*-

I * aal exposures exist among industrial workers embracing more than 500 materials
conditions which may be inimical or hazardous to health.

Studies of industrial

ducted by the Public Health Service and other agencies disclose clearly

~ 3 -

that certain of these workers experience high morbidity and mortality rates, and
that industrial occupation is an important factor underlying the cause of excessive
illness and mortality*
In its research actix’ities the Division has given particular attention to
industrial dusts, specific Industrial poisons.such as lead, radium, benzol, and
carton nonoxide; also attention to .dermatoses, ventilation, illumination, and
industrial morbidity and mortality.
Among its studies are those of skin hazards in tho refining of lead, copper,
gold, and silver ore; studies of asbestos, pottery, mercury; lead arsenate; and
silica.

Other studies of materials in industrial occupations include ones of

nica, feldspar and kaolin, manganese, and lead storage-batteries.

Research studies

in progress, include among others, on Investigation relating to the solubility of
lead arsenate in blood serum and a studj^ of lead arsenate on the gastro-intestinal
tract.

In June, outstanding studies were completed, including dust hazards in

the pottery industry, and determination of the particle size of industrial dust*
Standards of health and safety are being developed through cooperative ef­
forts of the Public Health Service, Bureau of Mines, Labor Department, and American
[Standards Association*

Industrial hygiene covers the scope of industrial safety,

sanitation, and general ?/orking conditions, and is of significant importance in
connection with the administration of workmen*s compensation laws.

All but two

States have laws covering accidental injury, while.approximately fifteen provide
Idispensation for one or more occupational diseases.

Por many years the State and

provincial Health Authorities of Horth America, sustained interest in the problem
I ^ough thoir Committee on Industrial Hygiene in spite of a la.ck of State funds.
After the passage of the Social Security Act, the Public Health Service in
Operation with this Committee inaugurated a program designed to establish indusrial hygiene units in the health departments of the various States.

On behalf

j State and territorial health officers, for example, the Public Health Service

has been instrumental in bringing about agreements with the chenical industry

covering certain poisonous materials to protect-workers in that industry and also
those uging its products;.
request.

It renders consultative services to States upon their

It has behind it many years of experience, research, ■and findings in

respect ,to the problem, having published between 600 and 700 papers on the
subject.
After the program was aggressively launched two years ago, the Public Health
Service held two seminars to introduce industrial hygiene procedure and initiate
the program*

These seminars culminated in a National Conference on Governmental

Industrial Hygienists which convened in Washington, D.C., the latter part of June
this year*

Twenty— three States were represented, including a medical doctor and

an engineer from each State health department.

The Conference resolved to main­

tain itself as a permanent organization and to promote uniformity of methods in
tackling industrial hygiene.
the various problems involved.

Nine preliminary committees were set up to deal with
The Public Health Service through the Conference

was able to furnish further assistance to States in the organization of their
industrial hygiene divisions and in the initiation of State studies for the pur­
pose of defining the nature and scope of the problem.
During the past year the Division of Industrial Hygiene gave consultation
services to twenty-seven States about administrative and technical subjects, and
sent its experts to twenty-three States one or more times upon request*

Technical

aid was also rendered in the evaluation and control of health hazards in industry
an^*

occasions, personnel from the Division conducted studies in selected in­

dustries in cooperation with State and local personnel.
Lectures on the subject were delivered at two universities designated by the
Public Health Service as training centers for public health personnel.
courses were conducted in seven States*

Brief

One of the serious problems confronting

Public Health Service in connection with establishing industrial hygiene units

1X1 State departments of health has been the shortage of trained personnel*

The

5

practice of industrial hygiene and sanitation requires a specialized training.

A

doctor or engineer undertaking this type of work should not only have a thorough
I grounding m

public health work,' but should also be well-trained in such subjects

I as ventilation, illumination, industrial toxicology, dust determinations, and
I various other specialized subjects pertaining- to industrial health.

Qualifications

I for service have been set up in cooperation with State representatives.
Those States in process of making industrial'hygiene surveys, are concerned
I with the number of plants and employees in the particular State surveyed, concentrating on the manufacturing, mechanical, and mineral industries which are the
nost important from the viewpoint of specific occupational hazards.

Provisions

Inade for safety supervision, medical service available, sickness records, and
I related data connected with selected industries are being tabulated.

Employees

8 tilGn sunreVe(3- occupationally, the nature of their work is examined, and the
materials or by-products associated with their activity are listed.

Prom

'mrt,otigation a preliminary survey of occupational exposure to specific mater­
ials demonstrated through experience to be inimical to health under certain condiI tio
■ ns IS available.

The surveys do not set forth the actual degree of exposure,

I to an exposure that exists which nay be hazardous. Therefore, only fron such
I
|
°78 can States ascertain the magnitude of their special industrial hygiene
■ Problem and cope with it according to a definite policy and program.
I

Surveys of this kind have been completed in eight States: ’ Alabama, South
° lna* Korth Car°lina, Virginia, Pennsylvania, Rhode Island, Maryland and Utah.
ai*Q un^er waV

Maine, Ohio, Illinois, Indiana, Missouri, Arkansas,

Blow
t California, Colorado, Idaho, Tennessee and Hew Hampshire.
In Conjunction with the Public Health Service, the cooperating States have
teeed
upon a uniform method of conducting each survey.

Certain nininun activities

I are &

*al.
i3%Stri*l1

(i) Preliminary surveys to determine the scope and nature of the

V t - t r r .4

g Gne P roblen in tko State; (2) Surveys by field personnel of plant

- 6 -

conditions causing or suspected of causing occupational diseases in order that the
department mjy advise or make recommendations for*the*control of existing or poten—
tial health hazards; (3) Arrangements for securing and investigating reports of
occupational disoasos Toy the division or "bureau of industrial hygiene; (4)
Arrangements for securing reports of all diseases for which sick benefits are paid
by industrial sick benefit organizations in the State department cf health; (5)
Cooperation to provide a source of information for other State departments, such
as, industry, labor, insurance, and nodical interests, or any agency interested
in industrial hygiene; (6) Educational program to acquaint industry and various
groups interested as to the importance of the problem.
The above activities are a summary of the work of the Division of Indus­
trial Hygiene in the development of industrial health programs in State departnents of health, but tnese activities constitute only a small portion of tho work
of this Division*

2?he major function of the Division of Industrial Hygiene is

concerned with scientific research in an effort to ascertain and combat the
eleterious effects of a largo number of materials and conditions to which workers
exposed*

Sinco the legal responsibility for the health of workers in tho

United States rests with State and local Government, it is highly essential that
these local governments be prepared to apply the research findings of the Federal
agency, if we are to improve the health of the industrial workers in this country#
viously, therefore, these two functions— namely, research and development of
ustrial hygiene units in local health departments— aro of a supplemental
character.
—

q

O

o

—

«* 4 *•

The Treasury includes in the daily statement of the United
States Treasury for the 10th of each month, a complete statement of
receipts and expenditures under the Social Security Act with a
statement of account showing cumulative figures to^close of the
preceding month.

<Sl

3

UNEMPLOYMENT TRUST FUND. JULY 31« 1938

Credits:
On account of deposits by State agencies ... $ 1,093,707,194.82
Interest on investments
.............18,000,904.97
Total .........................

1,111,708,099.79

Less withdrawals by State agencies .......

237,945,000.00

Balance in fund July 31, 1938 ...........

883,763,099.79

Assets:
Pace amount of 2^ percent Treasury certi­
ficates of indebtedness, unemployment
trust fund series, maturing June 30,
1939 .........................

872,000,000.00

Cash balance with Treasurer of the United
States

i

Total fund assets July 31, 1938 ....

—

883.763.099-79

In carrying out the provisions of the Social Security Act the
Treasury Department has also made payments aggregating
representing grants to^states.^t^^ o l lowjng sums to accredited agencies
of the forty-eight statesT^Al^^a, and Hawaii, for the following pur­
poses.
Old-age assistance...... .
$ 350,590,010.70
Aid to dependent children •••••
45,819,189,05
11,528,663.82
Aid to the blind
8,538,383.76
Maternal and child health
5,715,952.49
Services for crippled children.
2,735,562.78
Child welfare services ••»•••..
19,275,077.78
Public health work ........ .
Unemployment compensation
60,001,347.82
administration ••••••..... . *
Total

504.204.188.20

- 2 -

o JU *.4 X i?{

^40

___ ->

thf* taaliihE the benefits paid out.

The grand total in the Old-Age

-MaNmA*-« Account on July 31 was $1,136,463,498.56
which $700,300,000.00

t of

has been invested in three percent

special Treasury notes«
Under the provisions of Title IX of the Social Security
Actf which levies an excise tax graduating from one percent for the
calendar year 1936 to three percent for the calendar year 193® and
thereafter, on the annual payroll of employers of eight or more,
301,792 employers have paid $160,416,831.69
Treasury on their payrolls«

into the

This tax, which is generally regarded

as the unemployment-insurance tax, is paid only by the enployer,
Employers paying taxes into a State Unemployment Compensation Fund
under a system approved by the Social Security Board are allowed to
deduct from their Federal tax the amount so paid, not exceeding,
however, ninety percent of the Federal tar.
The forty-*eight statesTJilaska, and Hawaii on July 31, 1938,
had deposited $ 1,093,707,194.82

into the Unemployment Trust

Fund, from which they had withdrawn a total of $ 227,945,000,00
from February 1, 1936 to July 31, 1938.

This Fund, which operates

in accordance with Section 904 of Title IX of the Social Security
Actpnow has a balance of $ 883,763,099.79

•

The status

of the fund on July 31, 1938, is shown in the following statement i

TREASURY DEPARTMENT
WASHINGTON

FOR
RELEASE/ 'Pm '$
i
g*roim*¥r a o g p s t i s , i938

Press Service
No. l^l~'df

)
On the eve of the third anniversary of the enactment of
the Social Security Act,A Secretary of the TreasurywmeQmS&St an­
nounced that $887,946,271.71

in Social Securitytaxes had

been deposited in the Treasury up to July 31, 19387^$ï^â2,558,598,28
A
has been expended in carrying out the provisions of the Act, include
to the 01d?*Age Reserve Ac­

ing transfer of $690,000,000.00
count.

Tax receipts under Title Till of the Social Security Act,
deposited from January 1, 1937, to July 31, 1938, totaled
and were paid by 38V265,000 employees and

$737,526,539.32
1,787,000 employers.

This tax, which inposes an income tax on tbe

wages of every employee and an excise tax on every employer of one
or more, is popularly known as the old-age retirement tax.

Bot&

employee and employer pay a tax of one percent of the employee* s
wages.
Benefit payments from the Old-Age Reserve Account, created
under the provisions of Title II of the Social Security Act,
amounted to $6,210,545.30

_

on July

Interest

on the investments made by the Treasury in behalf of the Reserve
Account totaled $ 17,674,043.86

on the same date, ■aowe

TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON PAPERS,
Friday, August 12, 1938.
8-11-38

Press Service
No. 14-31

On the eve of the third anniversary of the enactment of the Social Security
Act, Acting Secretary of the Treasury Magill today announced that $887,946,271.71
in Social Security taxes^had been deposited in the Treasury up to July 31, 1938.
A total of $1,232,558,598.28 has been expended in carrying out the provisions of
the Act, including transfer cnf $690,000,000*00 to the Old-Age Reserve Account.
Tax receipts under Title Till of the Social Security Act, deposited from
January 1, 1937, to July 31, :1938', totaled $737,526,539.32, and were paid by
38,265,000 employees and 1,787,000 employers.

This tax, which imposes an income

tax on the wages of every employee and an excise tax on every employer of one or
more, is popularly known as the old-age retirement tax.

Both employee and employer

pay a tax of one per cent of the employee*s wages.
Benefit payments from the Old-Age Reserve Account, created under the pro­
visions of Title II of the Social Security Act, amounted to $6,210,545.30 on July
31. Interest on the investments made by the Treasury in behalf of the Reserve
Account totaled $17,674,043.86 on the same date, almost three times the benefits
paid out.

The grand total in the Old-Age Reserve Account on July 31 was

$1,136,463,498.56, of which $700,300,000.00 has been invested in three per cent
special Treasury notes.
Under the provisions of Title IX of the Social Security Act, which levies
811 excise tax graduating from one per cent for the calendar year 1936 to three
Per cent for the calendar year 1938 and thereafter, on the annual payroll of em­
ployers of eight or more, 301,7'92 employers have paid $150,416,831.69 into the
easury on their payrolls.

This tax, which is generally'regarded as the unemploy-

Insurance tax, is paid only by the employer.

Employers paying taxes into a

State Unemployment Compensation Fund- under a system approved by the Social Security
Board are allowed to deduct from their Federal tax the amount so paid, not exceed­
ing, however, ninety per cent .of- the-Federal tax*The forty-eight stateb; DiStrict of Columbia, Alaska and Hawaii on July 31,
1938, had deposited $1,093,707,194*82 into, the Unemployment Trust Fund, from which
they had withdrawn a total of $227,945,000*00 from February 1', 1936, to July 31,
1938.

This Fund, which operates in accordance with' Section 904 of Title IX of the

Social Security Act, now has a balance of $883,763,099.79.

The status of the fund

on July 31, 1938, is shown in the following statement:

UNEMPLOYMENT TRUST FUND, JULY 31, 1938
Credits:
On account of deposits by State agencies . . . . . . .
Interest on investments
......
To tal

. . . . . . . . . . . . . . .

......

$1,093,707,194.82
18,000,904.97
1,111,708,099.79

Less withdrawals by State agencies . . . . . . . . .
Balance in fund July 31, 1938 .................... $

227,945,000.00
883,763,099.79

Assets:
Face amount of 2J- per cent Treasury certificates
of indebtedness, unemployment trust fund series,
maturing June 30, 1939 ......................... .

$

872,000,000.00

Cash balance with Treasurer of the United States • . *

11,763,099.79

Total fund assets July 31, 1938 ............... $

883,763,099.79

In cariying out the provisions of the Social Security Act the Treasury
Department has also made payments aggregating $504,204,188.20, representing grants
to States, the following sums to accredited agencies of the forty-eight States,
District of Columbia, Alaska, and Hawaii, for the following purposes:
Old-age assistance . . . . . . . $350,590,010.70
Aid to dependent children . . .
45,819,189.05
Aid to the b l i n d .............
11,528,663,82
Maternal and child health services 8,538,383,76
Services for crippled children
5,715,952.49
Child welfare services ........
2,735,562.78
Public health work . . . . . . . . .
19,275,077.78
Unemployment compensation
administration . ............
60,001,347.82
Total
$504,204,188.20

~ 3The Treasury includes in-the Daily -Statement of the United States Treasury
for the 10th of each month, a complete statement of receipts and expenditures
under the Social Security Act with--a statenpnt of account showing cumulative
figures to the closo of the preceding month.

— 0O0 -

November 1 8 , 1937
TREASURX BEPARTMEWT
Washington
FISCAL AmTNTSTRATION OF THE SOCIAL SECURITX ACT
The S o c ia l S e cu rity A ct approved August 1 4 , 1935, provides in T it le s
V III and IX fo r ta x e s upon employers and employees and a lso au th o rizes
ap p rop riation s to meet expenditures fo r v ariou s S o c ia l S e c u rity purposes.
The ta x e s c o lle c te d under th e p ro v isio n s o f t h is Act a re covered in to th e
Treasury to th e c r e d it o f the G eneral Fund as In te rn a l Revenue ta x e s and
expenditures fo r th e purposes named in the A ct are made out o f the General
Fund.

The ta x e s c o lle c te d and th e expenditures made under a u th o rity o f

th e S o c ia l S e cu rity Act are handled in th e same manner as a l l oth er tax es
and expenditures o f the Fed eral Government*
T it le I I o f th e Act provides fo r F ed eral old -age b e n e fits .

S e ctio n

201(a) o f t h is t i t l e c re a te s an account in th e Treasury o f the United S ta te s
to be known as th e "Old-Age R eserve A ccount.H I t au th o rizes to be appro­
p ria te d , beginning tritò th e f i s c a l y ear ending June 3 0 , 1937, an amount
s u ffic ie n t as an annual premium, to provide fo r old -age b e n e fit payments,
and req u ires th a t such m ount s h a ll be determ ined on a reserv e b a s is in
accordance w ith accepted a c tu a r ia l p r in c ip le s , and upon an in te r e s t ra te
o f 3 per centum per annum, compounded an n u ally.
Old-Age B e n e fit Investm ents
S ectio n 201(b ) o f th e Act p la ces a duty upon th e S e cre ta ry o f th e
T reasu ry to in v e s t such p o rtio n o f the amounts cred ited to th e Old-Age
Reserve Account as i s n o t, in h is judgment, requ ired to meet cu rren t

-

■withdrawals »

2-

Such investm ents may be made on ly in in te re s t-b e a rin g o b li­

g atio n s o f th e U nited S ta te s o r in o b lig a tio n s guaranteed as to both
p rin c ip a l and in te r e s t by th e U nited S ta te s .

For such purpose such o b li­

gatio n s may be acqu ired (1 ) on o r ig in a l iss u e a t p a r, or (2 ) by purchase
o f ou tstanding o b lig a tio n s a t th e market p ric e *
•The S o c ia l S e c u rity Act extended th e p ro v isio n s o f the Second
lib e r t y Bond A ct, as amended, so as to a u th o rise th e issu an ce a t p ar o f
sp e c ia l o b lig a tio n s e x c lu siv e ly to th e Old-Age Reserve A ccount, and
s p e c ific a lly provided th a t such sp e c ia l o b lig a tio n s s h a ll bear in te r e s t
a t th e r a te o f 3 per centum per annum*

Furtherm ore, th e S o c ia l S e c u rity

Act s p e c ific a lly provides th a t o b lig a tio n s o th er than such «special®
o b lig a tio n s may be acquired fo r th e Old-Age Reserve Account on ly on such
term s as to provide an investm ent y ie ld o f not le s s than 3 P@r centum
per annum*
In view o f th e f a c t th a t th e market q u otation s on d ir e c t and guar­
anteed o b lig a tio n s o f th e United S ta te s during re c e n t months have been
on a b a s is which would not provide an investm ent y ie ld o f 3 p ar centum
p er annum, th e Treasury has in f a c t been lim ite d to in v e stin g th e o ld age reserv e ap p rop riatio n s in o r ig in a l is s u e s a t par*
When th e T reasu ry s e lls i t s o b lig a tio n s to th e Old-Age Reserve
Account th e r e c e ip ts from such s a le s belong to the G eneral Fund o f th e
T reasury and are tre a te d id e n tic a lly in th e accounts as i f the o b lig a ­
tio n s were so ld in th e market*

The f a c t th a t th e T reasu ry, in stea d o f

a bank, holds th ese o b lig a tio n s does not change th e ch a ra cte r o f e ith e r
th e tra n sa c tio n o r th e s e c u rity i t s e l f *

In e ith e r event the u ltim ate

payment o f th e o b lig a tio n r e s ts upon the c r e d it o f the United S ta te s *

- 3 Old-Age B e n e fit Payments
S e ctio n 207 o f th e A ct provides th a t th e S o c ia l S e cu rity Board s h a ll
from tim e to tim e c e r t if y to th e S e c re ta ry o f th e Treasury th e name and
address o f each person e n title d to re c e iv e an old -age b e n e fit payment, th e
amount o f such payment, and th e tim e a t which i t should be made, and th e
S e c re ta ry o f th e T reasury i s requ ired to make payment in accordance w ith
th e c e r t if ic a tio n fcy th e S o c ia l S e c u rity Board*
Under th e A ct such payments obviously would n ot and could n ot be paid
from th e p a r tic u la r ta x e s c o lle c te d from employees under the S o c ia l S e c u rity
A ct*

When such payments are c e r t if ie d by the S o c ia l S e c u rity Board to the

Treasury Department, they w ill be made from the cash balance in the Old-Age
Reserve Account and in th e event th e cash balance should be in s u ffic ie n t
to meet cu rren t w ithdraw als, i t i s th e duty o f th e S e cre ta ry o f th e Treasury
under th e A ct to s e l l back to th e gen eral treasu ry such amount o f th e sp e c ia l
3 per cen t in te re s t-b e a rin g o b lig a tio n s as i s n ecessary to provide th e money
w ith which to make th e payments*
Such payments w ill n o t be dependent upon th e ap p rop riation o f money to
th e Old-Age R eserve Account (o th e r than th e cu rren t annual premium pre­
v io u sly re fe rre d t o ) , but th e s e c u r itie s h eld in th e Old-Age Reserve Account
w ill be redeemed from money in th e T reasu ry, in th e same manner as any o th er
p u b lic debt o b lig a tio n s o f th e United S ta te s would be redeemed*
Here a g a in , the f a c t th a t such o b lig a tio n s are h eld by th e S e c re ta ry
o f the T reasu ry, In stead o f a bank, does not in any way a f f e c t th e ch a ra cter
o f e ith e r th e tra n sa c tio n or th e se c u rity i t s e l f *

The fundamental p rin c ip le s

involved w ith re sp e ct to th e redemption o f s p e c ia l o b lig a tio n s held fo r th e

V

“* 4 *"

Old-Age Reserve Account are identical with the redemption of United States
obligations held by the public*

The payment of either rests upon the

credit of the United States and the Congress has provided the machinery for
the Secretary of the Treasury to meet such obligations promptly upon re­
deemable or maturity dates*
The method employed to build up the Old-Age Reserve Account is not an
innovation of the Secretary of the Treasury, but Is specifically provided
for in the Act of Congress approved August 14# 1935«
The procedure of investing the old-age reserve appropriation in
spedai interest-bearing obligations of the United States is the same as
that which was followed by the Government in connection with the investment
of the war veterans* Adjusted Service Certificate Fund.

The Treasury met

its obligations to the veterans through and to the extent of such invest­
ments when it was called upon to do so*

It is also the same as the pro­

cedure which has been followed for many years in the investment of retire­
ment funds for the benefit of Government employees.
The method has the following advantages«
1*

The securities exactly fit the actuarial requirements which are

by law made the basis for fixing the appropriations for the fund*
2*

The bond market is not disturbed by the purchase of large blocks

of securities, and by a subsequent continuous pressure for the sale of
securities to provide cash for the Old-Age Reserve Account to meet current
withdrawals, the effect of which might be purchases on a high market and
sales on a low market*

3* Commissions to brokers on the purchase and sale of Government
securities are saved.

- 5 -

4*

Administrative expenses are smaller»

5f It is not necessary for the Treasury to be continuously in the
market for funds or to borrow during the regular quarterly financing
periods additional cash and to carry this cash, with a consequent loss of
interest, until it can be invested in Government securities on the market
as and when the appropriations become available«
6*

Gash demands of the Old-Age Reserve Account can be immediately

satisfied by the redemption by the Treasury of the special obligations
and the whole plan has greater flexibility.
7«

When the heavy payments under the Old-Age Reserve Account fall

due several years hence, the Treasury will be in a position to do the
necessary financing to meet the conditions then existing, without being
compelled to sell a quantity of miscellaneous Government securities perhaps
unsuited at that

time to the market and to the Treasury* a program»
Unemployment Trust Fund

Section 904 of the Social Security Act establishes in the Treasury an

Unemployment Trust Fund to which are credited moneys deposited by the States
from State unemployment funds»

The requirements for investment of the

moneys received into this fund are similar to the requirements with respect
to the Old-Age Reserve Account, except that the required rate of yield of
investments for the Unemployment Trust Fund is governed by the average rate
of interest paid on the public debt»

In the light of considerations stated

with respect to the Old-Age Reserve Account, investments for this Fund have
also been made in special obligations which at the present time bear
interest at the rate of 2-1/2 per cent*

- 6 -

Effect on the Budget and the Public Debt
As stated above, the taxes collected under Titles ¥1X1 and IX of the
Social Security Act pass into the General Fund of the Treasury*

They are

revenue receipts of the Government and are listed as such in the Daily
Treasury Statement and in the Budget Statements*

Similarly, the expendi­

tures for Social Security purposes authorised by the Act are paid out of
the General Fund and are accounted for as General Fund expenditures both
in the Daily Treasury Statement and in the Budget Statements*
penditures include t

These ex­

(1) administrative expenses! (2) investments in the

Old-Age Reserve Account! (3) grants to States for old age assistance, for
aid to dependent children, for maternal and child welfare, for public
health work, for aid to the blind and for unemployment compensation admin­
istration*

The total of these expenditures has exceeded by a substantial

amount the revenue receipts under the Act*
Moneys received from the States for the Unemployment Trust Fund are
treated differently*

They do not enter into receipts or expenditures of

the General Fund, nor do they constitute part of the Federal Budget*
These moneys are received by the Secretary of the Treasury as a custodian
or trustee for investment in United States Government obligations under
the terms of the Social Security Act*
The effect of the investment of Social Security funds in Government
securities is to transfer to the Old-Age Reserve Account and to the Un­
employment Trust Fund the ownership of an amount of Government obligations
which would otherwise be held by others*

The amount of the obligations

-7hold by these funds is listed as a part of the public debt«

The issuance

of the special obligations to these funds does not operate to reduce the
total amount of the public debt, but only to effect a transfer of omrnr^
ship of a part of it*

KMMflt

Amount

Hunger of states

Tuberculosis Control
Vital Statistics
Public Health Hursing
Malaria Control
Health Education
Pneumonia Control
Dental %giene
Bedsat Plague Control
Food sad Drug Inspection
Trachoma Control
Caaeer Control
Maternal and Child Health
Mental Hygiene
Total (including expended balances

m

1

880,041.90
161,149*14
146,390*00
1S9.3SS.00
11S.61S.00
.,
8S.0S9.6S
90,615*00
58,948.00
54,895*00
34,253*00
29,614*00
23,340*09
13*380*00
# 10,304,663.60

32
21
i
23
4
8
2
3
3
5
9
1

carried forward)
The enlargement of the sphere of Federal assistance la the
field of puhlie health has been gradual*

Slnee 1893, the Surgeon

Cenerai of the Public Health Service ha» beea required by law to
cooperate with State and municipal authorities in the enforcement
of State and Xeeal health regulations*

The Tubile Health service

has acted advisory te state# la »attere of public health adminiatre*
tie»#

Thle co^cratiwc aid waa strengthened in lilf whea Congrea»

set acide annually 125,000, later increasing the amount fxm t i »
to time, for the Public Health ¿Service to cooperate with State» in
stud lea end demonstrations la rural health*

Under extraordinary

elremaataaeea, such aa during the World War, during devastating
droughts, and at times of great floods, large suae have been »et
aside to cope with emergency aaeda la the aid of States and local
areas*

e

va»

# 1 pandod,

leaving * baiane» of #881,859*81 to b» earrlad for-

word t M addad to tba appropriano» for th# fisoni year 1937*

fb»

fall $8,000,000 appropriata for 1937 a M e d to thè «arpia» loft
orar fra® 1936, whleh ia lagittmat» andar tha Aotf »»da a tate!
«f #8,881,859.81 availabi».

0f thl» lattar smount, #7,766,203*33

»a» pald to tba Stata», leaving for tba 1936 fi»e»l ? «
of #1,116.667*67•

a atipia«

Th» total of #9,116,686.00 avallati« for

allooati «a in 1936 va» aUottad a» follo»»:

#8,800,000
Assoni lag to population , * * • * • * * * * * * • •
8,767,96$
Aaaor&ing to finane lai nead» . ♦ * . » « • * ♦ » *
Àaaording to spasisi baaltb problema:
997,838
Spasisi dlaeases and aonditiona • • * * •
816,600
Spealfia program» « * * * • • • • * # *
1,116,656
training * . * # • » * . # * # * * • * *
1.818.800
Surplus «vailabi# for sanerai parpoaaa •
f
9
gl l l , 6 »
total * # # « # < ► * * * * » • * • * • * * * * * * *

S tata and lista i fonda ra^uiraè to »atah fa d a ra l fuada »arai
With a& a tln g apprapriation»
With no» ap p ro p riati»»»

#3,088,150
8,898,666

The purpoaa» v ite »M ah th» t o t a l aliotwent s to State« fr®a
a li randa appropriateci under Saation 601 o f tb# Boat a l saourlty

fo r tba fia o a l year 1938 »a ra budget»* hy tba S ta te » and C r i t e r i « «
a» of January 1, 1938, a» follo»»:

Purposa
Loeal Health Banriea»
training of Publio Haaltb tortora
Tanareal Disenso 0aatrol
sanltarjr tingioeering
Promotion nnt Saparflsian of locai
Servi»»*
iaboratory Baaaaafab

65
51

63
66
36
61

General Admlnistrative Krpanaaa
66
Generosi Prarantabla Bisenso Aettritie* 88
Industriai tìygi»»»
21

#6,819,935.79

1,686,667.59
687,386.56
539 559.58

,

387,881.00
612,086*09

372,109.86
362,653.19
355,656.81

special Health probi©ras; and (a) thè finanolai s»eda of thè
aiate betng aided* Fonde not uaed at thè ©ad ef thè ficcai j m t
are redistributed «aca« alì thè State# rateivia« aid thè followiag
y@ar* States match thèse trenta in accordance wlth thè régulation«
Sfaitably worfced cut by a «oaference of State and territorial
health offIcore stth thè surgeon Chinerai of thè United States
Publie Health Service*

The publie Health Servies in adaimieterlng thè grante-iiwiid
to thè States dose not eetabUsh federai jurlsdìetica or©r h^alth
«ork in States* State and locai lava and régulation* govors* thè
hcelth administrât leu of States. The Federai Goveraaant nerely
assiste in espandine services and in estendine protection and
guidasse in »attere affasti»« health# locai reeponaibility la
peranount* Tha Publia Health Service dee* not recoasièad a
standard pattern of organisation in adaiaietrative practice* On
thè ooatrary, it enecurages States to edopt plans applicable to
thèIr partieular needs* The publie Health Service approvee «ny
pian m&ftb la eeiaatifically sound and giva» promise of realiai»«
tha purpoees of thè lev*

giace thè operation of public health services under thè
Social seeurlty dot» appropriation# end espanditurca in thè f e m
of «raate~ln*aid hâve beau ee fallose? far thè five-»onth period
Februery 1 t© Fune 80, 1933, thè emanai of #3,333,000 «se ap­
propriâtes for distribution to thè State# and actuelly $8,481,1*9**®

i

of State publie health astivitias*

For crampi©» prior to thè

paesane of thè Social Seeurity Aet, o n l y 13 States fead separate
dlvisioaa of venereal disosso control#
timo venero&ì disusa contrai offieer*

Only 9 craployod s fall*
%

July lv 193?t 34 ìmd

separato diri stona and 30 had full-time and ivo part-time off icore
«m^loyed for renar©al dlsoaso oontrol#

Othor health act tritio*

show a market lncrease in Ibis direction under thè impetus cf
thè Social Secarlty Aet»
fhrougfe new State appropriati ons to match Federai graniaf
many States bare set up separate tirisi ons for thess special
actiritles In thelr State departmsnts of health»

The development

of thè se actiritles In States between Fanuary X * 1936 end May 1936
elearly Iliostratea State health lmproremamt*
For prerentable diesasse 35 States had separate divisions prior
to lana ry 1, 1936» 44 in May 19381 for locai health admlnistratlon»
16 cotapared vith 31 no«; for publie health nursing» 86 campar©a with
38| for industriai hygiene, 3 comparsi with 13 noe; for «eternai
and ehlXd health» 30 comparsa vith 91; for dentai hyglene» 8
comparai with 1?; for publie health education» 1$ comparaci with 81;
for engineering» 44 scoparci with 30; for tuberculosls, 13 ceoparcA
with 1?; for cannar control » 3 comparsa with 4; for laboratori©©»
45 comparsi with 46 noe» »felle 3 States now haro separato tirisi«»*
on malaria control and 4 on rodont plagua control*
Money allotted to thè States under Tttle 71 of thè Social

Somarity dot le distrlbutcd on thè basic of (a) populetion; (b)

pbyeict&n is beiag

tbroa# leeturss «aà treotaHMit

danoastratloa la tb# ©antro! of aypbills» eansar, tubareulosis
scoperatlon with souaty an& at&t« »sdissi aosleties*
X
.
■
t
Pubi la bealtb aurata aaployed by lessi a&d Stata agonale®
;/'■ v■■jF .
la fi# M

W

Stata# l&srsaaed frena 16,000 t© 13,000 betwesn
fhis «aa an i&srsaa* of 28 percent , «iti m

1931 aad 1937*

la*

arsane of 38 perosnt la m r a l area#*
•/ '
All States and territorio® partieipatlng 1» tbe Sostai
sosurlty progrs» acar previde public bealtb nursing eoaaultatiaa
servi©# eoapared witb 38 la M I X #

at&t# baaXtb departaeat#

«aployed 388 basiti auralag «dainistrafora9 sup*nriaora, and eoa~
aultaaf# la 1937, aoopared viti 149 la 1931*

fila la aa inorasse

of XXd perseat*
Prior to tb# Aat, full-time bealtb affisare serve* 667
e©untisa, but by Baaaabay 319 X937t follcnrlag tba passage ## j H
Aatt X9X66 settati## «ara serve* by full-time affisare, aa laaraaaa
of 74*8 parseat*
oooporation*

fila Ingresse «aa dna to federai ald aad Stata

ito* mix stata# ara ©ompletely severa* by full-tla*

healtti affiserà conjpared «Iti tira# fanuary ly 1933*

fila dosa

aat mesa la all eaaaa a basili offloar la aasb eouaty9 but la
aany State# lt haa basa found »ora ssoaofltieal to greap a mmber of
soaatlea la a bealtb dlatrlst aa a uait of statinistratioa*
Throughgrant»~in~ald to State# a rvuaber of «pestali«®*
public bealtb faastioi» bara beaa set up aa separate dirla iosa

2

4» firn oatoaoiea «f fall-tlaa pttblio baalth oanrloo «o aeerly
doublé «ho naaber ©f ernia*io o wfeioh onjoyad oueh «orrioo pvU* to
«fe* pasaago of tbe cìooial Saturi«! A©«*

A career u r r U i 1«

•Montiti 1» so opoolaliaod a fieli •« pub H e hoaltb*

traino*

porooanoi io ea*ent tal io «ho Monomi cal expenditur© of M v *
wtth «bo ttBlm «14o or intero«« lo «editai rattorta and thè
•oblooonexiio of proroatlro medicine, phyolelaa* aaà auree« boro
*urn*d io Oblò fieli uader Ohe ««ialino of Scolai Saturiti «rea««.
#1,483,000 ««« alletti ia «ho fioeoi yoar 1937~*38 for «ho trainili«
of bealth «orkars*

.

HOarly 3,000 por «eoo boi boom gire» poat-graduato «rotaia« la
publie hoaltb oork up «o lbao 30# 1937*

Boria« 1933, o «oboi of

1,300 boro rotolati «rolalag «boa far*

Thooo «rai&od laoludo ibi

studioal offleora, 103 eagiaoero, 1,340 aarooo, 431 oaaitatloa offie«»,
lt@ laboratori «orkart, aad 40 othero*
offleora M

Mare «boa 300 aadioal ■

rotolati a full ooe~year oouree la publle bealtb

adainiotmtion a« «bo oleoo of «bo ourrent yoar, «ad 141 aurato bai
bota «irea a «bolo yoar of peot-«rodtt»«o #©rk.
A narkod Imereaeo la «bo «ambor of Xaborotory parsomi«!
trai ned « M e year beo basa duo «o tba oaphaaio o» aad «bo latro*»«*
Intere et la syphllia and paeuaonia oomtrol*
beo greatlp expaaded la tbe Stateo*

7oaoroal disteso oentrol

Max# state® aro preriding

porlodo ©f troiaio« far olialoieao engagé la reaoroel dloease ooa«rol ocrk ao par« of «belr Stata bualth prograao*

tba primato

Eatioawide gala» la tha daralopasaat of publià haalth facilltiea
vara rarlaaad today by tha United Stata» Publio Health Sarrlta la a
sumary al* tbrea yoara of aaJb&avaffiant undar tha SoaiaJt Sacurity Aet#
whflft Qongraas pasaad tha So»lai Saeurity Aat la 1$38 It
recogniaod that If thè natioa «are to acanna raoponaibility for
tha diaabled and dapaadaat, prarantabla dlaabllity ead dapeadoaay
lauat ba reduead to a mininola*

Ondar Titla fi of tha dot, tfcara-

fora, lt prorided for aa animai appropriano» of #8,000*000 fot
ald to tha Stata» in tha davolopaant of Rubila hoalth ««arie,
AeuieYomeiita raoordad by tha Pubi la Haalth sarrlea la iti

statamant Includiad:
1* Tha training of thousands of aaw pubi!« haalth workara,
and tha aatabliahaoat of training aaatara diraeted toward araatiag
adaquata parsonno1 for thia moat profaaaiooal of all publlc
»arrieoa*
3,

XMnralopaaat of ia«ay i w and uaaful publlo haalth attiriti»*

and tha oxpanaion of old onae, in maay Stata haalth dapartasanta#
With thia boa coso a great inoraaaa in tha nuabar of trainad «tritar*
engaged in hoalth «ork wlth Stata and locai haalth dapartaant#
throughout tha oountry.
i# A daaonatratioa of tha axtant to whith judieioua adalni*tratioa of fadarai fonda amili ©tlmulata and anaouraga volaatery
priva to aupport, looal appropriati©» and action for uaefiil paglie
serrice»*

TREASURY DEPARTMENT
U.S. Public Health Service
Washington
JOR RELEASE, MORNING NEWSPAPERS,
Sunday, August 14, 1938.________
jPTl-38
...
-

Press Service
No. 14-32
- .... ......

Nationwide gains in the development of public health facilities were
reviewed today by the United States Public Health Service in a summary of three
years of activity under the Social Security Act.
When the Congress passed the-Social Security Act in 1935 it recognized
that if the nation were to aid the disabled and dependent, preventable disability
which, might result in dependency should be reduced to a minimum.

Under Title

VI of the Act, therefore, it provided for an annual appropriation of $8,000,000
for aid to the States in the development of public health work.
Achievements recorded by the Public Health Service in its statement
included:
1.

Development of many Ihew- and useful public health activities and the

expansion of old ones, in many State health departments.

With this has come a

groat increase in the need for trained workers engaged in health work with State
arh local health departments throughout the country.

2o

The training of thousands of new public health workers for this

highly professional public service.
3o

A demonstration of the extent to which judicious administration of

federal funds could stimulate and encourage State and local appropriations and
action for useful public services.
4.

The extension of full-time public health service to nearly double

tno number of counties which enjoyed such service prior to the passage of the
Social Security Act.
A career service is essential in so specialized a field as public health.
Gained personnel is essential to the economical expenditure of funds.

With the

rising tide of interest in medical research and the achievements of preventive

[medicine, physicians and nurses have turned to this field.

Under the stimulus

of Social Security grants, in the fiscal year 1937-38 $1,485,000 was allotted
for the training of health workers.
Nearly 3,000 persons had been given post-graduate training in public health
work up to June 30, 1937.
thus far.

During 1938, a total of 1,300 have received training

Those trained include 651 medical officers, 162' engineers, 1,540

nursos, 451 sanitation officers, 88 laboratory workers, and 60 others.

More than

200 medical officers had received a full one-year course in public health adminis­
tration at the close of the current year, and 161 nursos had been given a whole
year of post-graduate work.
A marked increase in the number of laboratory personnel trained this year
has been due to the emphasis on and the increased interest in syphilis and
pneumonia control.

Venereal disease control has greatly expanded in the States.

Many States are providing periods of training for clinicians engaged in venereal
disease control work as part of their State health programs.

The private physi­

cian is being reached through lectures and treatment demonstration in the control
of syphilis, cancer, tuberculosis in cooperation with county and State medical
societies.
Public health nurses employed by local and State agencies in the United
[States increased from 16,000 to 18,000 between 1931 and 1937.

This was an in­

crease of 22 percent, with an increase of 32 percent in rural areas.
All States and territories participating in the Social Security program
now Provide public health nursing consultation service compared with 38 in 1931.
|>j ,
a G health departments employed 322 health nursing administrators, supervisors,
[

ccnsultants in 1937, compared with 149 in 1931.

This is an increase of 116

percent.
but by
served

by full-time officers, an increase of 74.8 percent.
Federal aid and State cooperation.

This increase was due to

Nov/ six States, are completely covered hy full­

time health officers compared with three January 1, 1935.

This does not mean in

all cases a health officer in each county, but- in many States it has been found
more economical to group a number of counties in a health district as a unit of
administration*
Through grants-in-aid to States a number of specialized public health
functions have been set up as separate divisions of State public health activities.
For example, prior to the passage of the Social Security Act, only 13 States had
separate divisions of venereal disease control.
venereal disease control officer.

Only 9 employed a full-time

By July 1, 1937, 24 had separate divisions and

30 had full-time and two part-time officers employed for venereal disease control.
Other health activities show a marked increase in this direction under the impetus
of the Social Security Act.
Through new State appropriations to match Federal grants, many States have
set up separate divisions for those special activities in their State departments
of health.

The development of these activities in States between January 1, 1936,

ottd May, 1938, clearly illustrates State health improvement.
For preventable diseases 35 States had separate divisions prior to January
» 1936, 44 in May, 1938; for local health administration, 16 compared v/ith 31 now;
for public health nursing, 20 compared v/ith 32; for industrial hygiene, 3 compared
with 15 now; for maternal and child health, 30 compared with 51; for dental hygiene
compared with 17; for public health education, 16 compared v/ith 21; for engineer—
44 compared with 50; for tuberculosis, 13 compared with 17; for cancer control
3

compared with 4; for laboratories, 45 compared with 46 now, while 3 States now

have separate divisions on malaria control and 4 on rodent plague control.
Money allotted to the States under Title VI of the Social Security Act is

4

distributed on the basis of (a) population; (b) special health problems? and (c)
tho financial needs of the State being aided.

Funds not used at the end of the

fisca l year are redistributed among all the States receiving aid the following

year.

Stat es natch these grants in accordance with the regulations equitably

worked out by a conference of State and territorial health,officers with the
Surgeon General of the United- States Public Health Service.
The Public Health Service in administering the grant s-in-aid. to the States
does not establish Federal jurisdiction over health work in States.

State and

local laws and. regulations govern the health administration of States.

The Federal

Government merely assists in expanding services and in extending protection and
guidance in matters affecting health.

Local responsibility is paramount.

The

Public Health Service does not recommend a standard pattern of organization in
adninistrative practice.

On tho contrary, it encourages States to adopt plans

applicable to their particular needs.

The Public Health Service approves any plan

[which is scientifically sound and gives promise of realizing the purposes of the
Ilaw.
Expenditures
Since the operation of public health services under the Social Security Act,
appropriations and expenditures intho form of grants~in~aid have been as follows,
for the five—month period February 1 to June 30, 1936, the amount of $3,333,000
was appropriated for distribution to the States and actually $2,451,140.79 was
oxpended, leaving a balance of $881,859.21 to be carried forward and added to the
appropriation for the fiscal year 1937.

The full $8,000,000 appropriated for 1937

[addod to tho surplus left over from 1936, which is legitimate under the Act, made
a total of $8,881,859.21 available.
i°
[0tal

Of this latter amount, $7,765,203.33 was paid

States, leaving for the 1938 fiscal year a surplus of $1,116,657.67.

The

$9,116,655.00 available for allocation in 1938 was allotted as follows*

5

According to population . . . . ....... ............. $ 2,800,000
According to financial needs . . . . . . . . . . . . .
2,767,968
According to special health .problems:............
Special diseases ana.CQnditions . . . . . . . .
997,232
Specific programs.................. , . . . .
216,600
.Training . . . . . ...... ......... . . . . . . . .
1,116,655
Surplus available for general purposes ........
1,218,200
Total ............................. . ...............$ 9,116,655
State and local funds required to natch Federal funds were:
With existing appropriations .......... $ 3,052,150
With new appropriations . . .
.....
2,892,666
The purposes with which the total allotments to States from all funds
appropriated under Section 601 of the Social Security Act for the fiscal year
1938 wore budgeted by the States and Territories as of January 1, 1938, as follows:
Purpose

Fumb er of Stat os

local Health Services ..............
Training of Public Health Workers • •

45
51 (includes
District cf Columbia,
Hawaii and Alaska)
43
44

Venereal Disease C o n t r o l ....... .. •
Sanitary Engineering . . . ..........
promotion and Supervision of Local Health
Services • • • • . • • • • •
....
¡Laboratory R e s e a r c h .............. .
■General Administrative Expenses . . . .
■General Preventable Disease Activities
¡Industrial Hygiene ................ .
tuberculosis Control • ............ .
¡Vital Statistics • •
■Public Health Hursing .............. .
Palaria Control . . . . . . . . . . . . .
ffealth Education
......... .
Pneumonia Control ....................
fontal Hygiene • •
............
{Meat Plague Control............. . .
I004 and Drug Inspection . . . . . . .
trachoma Control •
fencer Control
.
paternal and Child Health . . . . . . .
Fe«al Hygiene
lotal (including expended balances carried forward). . . .

Amount
$ 4,219,935.79

1,485,467.29
827,325.56
539.559.52
527.821.00
412,086.09
372.109.53
362,453.19
355,654.21
280,641.50
161,149.14
144.370.00
129.323.00
112.613.00
85,099.68
70.615.00
58.748.00
54.895.00
34.263.00
29.614.00
25.540.00
15.380.00
$ 10,304,663.50’

2he enlargement of the sphere of Federal assistance in the field of public
pa-lth has been gradual.

Since 1893, the Surgeon General of the Public Health

■ rv*co has been required by law to cooperate with State and municipal authorities

-

6

-

in the enforcement of ~Stat-e -and: local -health- regulations# -fbe Public Health
Service has acted advisory to States in matters of public health administration*
This cooperative aid was strengthened in 191? when Congress set aside annually
$25,000, later increasing the amount from time to time, for the-Public Health
Service to cooperate with States in studies and demonstrations in rural health*
Under extraordinary circumstances, such as during the World War, during devas­
tating droughts, and at times of great floods, large sums have been set aside
to cope with emergency needs in the aid of States and local areas.

— cOo—

-

2

-

38,265,596 employees and 1,787,708 employers have paid a total tax
of $

When the Title VIII tax was inaugurated

on January 1, 1937 returns and tax payments were made "by the em­
ployers in behalf of themselves and their employees monthly.

How-

ever, in a ruling issued by^Commissioner of Internal Revenue
Title VIII returns and taxes were placed on a quarterly
basis as of January 1, 1938.
This change in tax collection procedure was accomplished to
¿ r m &1 1 j ,
,
>ookkeeping on the part of employers and the Bureau of
Intemal Revenue.

■Ljulrtitfl""frT i
,dadu€t

«She liuiploy

The field forces of the Bureau of Internal Revenue, in accordance
with 'WR? terms of the Social Security Act which impose*! severe penal­
ties for failure to make tax returns and payments, have oonduoted- ^
39,000 delinquent investi-

vige-froua d^kvoe eegmnejr/
gations are being conducted currently.

During the first quarter of

I 1 1 r?%efg1938, ending March 3 1 > ^ , 5 3 3 new taxpayers were added to 'tks
making Social Security tax payments.
In administering the Social Security
L. f » »

r s rtf-'

funds, the Treasury Depa$tlA /V fk

V

.

mgpt follows the procedure out1i ^ T W T S ^ r e s n n t

h

e

A

c

t

—

g j-^ T re iL S ^ K M Has -frt^ s -fe v W
been Inan Jrii A d ffio the Old-Age Reserve Account
ss.
)n certification of the Social Security Board, the Seci^t
iribnted £60700^^7.82

to the

4
rates, Alaskawand

A

i
Hawaii forráaaBBwÉÉWfpqPf"* ^ StateJj^fSpíoyment
____ _Compensat
m
, on^áuini$ 11,528,663*82 fo r Aia ta^-tK eB lind, and $ 3 5 0 ,5 9 0 .0 1 0 .7 0 fo r Old-ige
tra tio n lT Z f*|5 gl 9 ,
aid to Dependent C h ilaren ^ on c e r t i-

\

£3 wter

i t

s di si.

A mKKA

The Treasury Department today described its method of collect­
ing and administering the taxes levied by the Social Security Act,

Trhinlm impnrmir r
, hii.ifl t

A*

»»imdTnMinwpn *m■* m innhgwn'nifFr;«!twh«■1i«-»tiny
.which will have been jin

liu o ift r y -

effect three years tojaerrow^^^^, 265,596 employees and 2,089,500
employers have paid $ 887,9^6,271*71

.....

fund as of July

into the general Treasury

..J s 71

Enacted to provide Old-Age Pensions and Unemployment
Insurance for employees, the Social Security Act levies an income
tax on theyfllMM^Kwages of employees and an excise tax on employers of one or more persons under the provisions of Title VIIJ and
an excise tax on the annual payroll of employers of ei^it or more
persons under Title IX.
Collection of the taxes is the duty of the Bureau of Internal
Revenue^with its sixty—four Collection Districts in the forty—eight
states, Alaska and Hawaii.

The one percent excise levy contained

in Title IX of the Act. was first imposed on employers having eight
or more persons on their payroll during the calendar year of 1936.
DivU
to >&U-»
±
eXA^> tmjJi.
cft-v O f- cSu iJtA X1-*
e * JL* * *A* * "*i
f
<rbtal collections of 'this"tax, which is paid by the employer alone,
amounted to it lTO.lH6.g31.6q

f

j

)

f

Title VIII taxes, levying an income tax of one percent on the
wages of all employees and an excise tax of one percent on
th

wages paid by employers of one or more persons, went

into effect on January 1, 1937.

from that date to July 3f,

TREASURY DEPARTMENT
Washington

?0R RELEASE, MORNING- NEWSPAPERS,
Saturday, August 13, 1938.______
8-11-38

Press Service
No. 14-33

The Treasury Department today described its method of collecting and ad­
ministering the taxes levied by the Social Security Act, which will have been in
effect three years tomorrow*

Under the provisions of the legislation, 38,265,596

employees and 2,089,500 employers have paid $887,946,271.71 into the general
Treasury fund as of July 31, 1938.
Enacted to provide Old-Age Pensions and Unemployment Insurance for employ­
ees, the Social Security Act levies an income tax on the wages of employees and
an excise tax on employers of one or more persons under the provisions of Title
VIII, and an excise tax on the annual payroll of employers of eight or moro persons
under Title IX*
Collection of the taxes is the duty of the Bureau of Internal Revenue, with
its sixty-four Collection Districts in the forty-eight States, Alaska and Hawaii.
The one per cent excise levy contained in Title IX of the Act was first imposed on
employers having eight or more persons on their payroll during the calendar year
of 1936»

This tax was increased to two per cent during the calendar year 1937 and

three per cent during the calendar year 1938 and thereafter.

Total collections

of this tax, which is paid by the employer alone, amounted to $150,416,831*69
nt the end of July.
Title VIII taxes, levying an income tax of one per cent on the wages of all
employees and an excise tax of one per cent on the wages paid by employers of one
or more persons, went into effect on January 1, 1937.

Prom that date to July 31,

938, 38,265,596 employees and 1,787,708 employers have paid a total tax of
^37,526,539.32#

When the Title VIII tax was inaugurated on January 1, 1937, re-

Vurns and tax payments were made by the employers in behalf of themselves and

-

their employees monthly.

2

-

However, in a ruling issued by the Commissioner of Inter­

nal Revenue Title VIII returns and taxes were placed on a quarterly basis as of
January 1, 1938*
This change in tax collection procedure was accomplished to simplify book­
keeping on the part of employers and the Bureau of Internal Revenue.
The field forces of the Bureau of Internal Revenue, in accordance with
terms of the Social Security Act which impose severe penalties for failure to
make tax returns and payments, have made thorough checkups of delinquents*
than 39,000 delinquent investigations arc being conducted currently*

More

During the

first quarter of 1938, ending March 31, a total of 12,533 new taxpayers were
added to those making Social Security tax payments.
In administering the Social Security funds, the Treasury Department follows
the procedure outlined by Congress in the Act.

In lino with appropriations, the

Secretary of the Treasury has transferred $690,000,000 to date to the Old-Age
Reserve Account.
— oOo—

Research

apparent cause for this lias

in the

fact that resource© are scattered

and efforts duplicated because of a lack of common direction in.
prosecuting health work#
These are but a few of the numerous research activities and
studies being carried on by the national Institute of Health# Others of
great significance* unifying and rounding out the whole program are of
importance# for example* the Institute extends cooperative service to
various federal department* and bureaus* to States* local authorities,
welfare agencies, professional and lay organizations* municipal and
private hospitals* and individuals throughout the United States, and
in turn receives their cooperation in a number of ways# Much of the work
which the Institute has been performing could not have been done effective
without this reciprocal action# It© relationship has been consultative
and advisory# This cooperation has embraced the Department# of Labor,
Justice, Interior* Commerce, Agriculture, Kavy* Army; the Housing Cosasissi
several state# in the development of Industrial Hygiene; local gcveraeeats
in conducting milk sanitation* seminars, and various technical health
training courses# It has cooperated with the Rockefeller Foundation*
Bureau of Entomology and Plant Quarantine* and the T. V# A. There has
an exchange of mutual services between the Institute and the Milb&nk Tv&i
the federation of Sewage Laws Association* the International Associatioo
of Milk Sanitariums* the Pan-American Sanitary Bureau* the American
Standards Association* the American Gas Association* and the Msticoal
Resources Committee# Many universities have participated in cooperative
studies and seventy-five hospitals fro» Coast to Coast have sent autopsy
material for trichinosis studies.
BBiMG— SA1/3S

~5 -

««re found in B«w fork, Michigan, Pennsylvania, *outh Carolina, i«i
Virginia, T©xaa, Iona, and Florida# The staff of the Institute at once
put at the disposal of physicians in the affected areas,information
concerning its prevalence and methods of diagnosis*
The study of active immunisation against scarlet fever in the
past year m s enlarged to include 11,500 children* It was found that
the attack rate among tested children was tea times less than is a
Control group# Also, because of typhus increase during the last decade,
attention was focused on the cause and the development of methods for
better control* Sieve» species of native rodents were found capable of
harboring virus of endemic typhus.
Other research activities include research projects in milk
sanitation, child hygiene, improved methods for controlling malaria,
in tuberculosis, and in clinical research# Still other activities
include research on practical and efficient methods of destroying
insects aboard aeroplanes, on health of transients, on communicable
diseases, water supplies, and sewage disposal*
The Institute made an analysis of data bearing

m

the income,

expenditures, and personnel of hospitals. It was found from, the
analysis that general and special hospitals receive more than one-half
of their funds from patroMs, about one-third from taxes, and. one-eightb
fro® other sources. Bed costs were highest in Federal hospitals and
lowest in hospitals operated by local and State governments* In general,
It was found that compensation for administrators of health agencies
were higher for non-official than for official organisations. The

Research

- 4 -

measles, meningitis, diphtheria, scarlet fever, sad infantile paralysis
combined*
A study of the health of young people according to age group
involving

%

OCX) families scattered over eighteen States indicated that

the least amount of illness occurs between the age® of 15 and 24, while
the greatest amount appeared in children under 5 years of age*
A co m p a riso n

of the acre serious diseases of childhood showed

that for whooping cough and measles, the spread between the rates for
the younger and the older groups has increased slightly, and that these
two diseases continue to attack the very young children as much as ever.
However, for meningitis, diphtheria, scarlet fever, and poliomyelitis,
it was found that this spread

hm

definitely decreased, especially for

the latter two diseases. The fatality of infantile paralysis has de­
creased among the younger age groups, according to the findings*
The area of Rocky Mountain spotted fever infection ms found
to have increased during the past year to include Ohio and Massachusetts
and a number of counties in various state© where the disease already
occurs*
Studies in trichinosis continued*

The wide prevalence of

trichinosis, a disease caused by a parasite acquired from eating uncooked
pork, has made it of public health importance. Recent studies deaonstrat
about

17

percent of the people of the United States are infected with tt*

disease* Its prevalence is high along the Morth Atlantic coast and the
Southern Pacific coast, low in the South, and intermediate elsewhere*
Weil’s disease, an acute infectious disease, sporadic

in the

Baited States, was heretofore regarded as a tropical malady until C8SSS

— 3 ~

Curtain outstanding discoveries have evolved from the research
of Institute workers which are of great value# Among these have been
advances in hookworm studies) the close relationship between contagious
abortion in cattle and undula&t favor of man) the standardisation of a
number of biologic product®) the infectious period of measles whereby
quarantine for this disease ha© been greatly shortened) the causes of •
tularemia, pellagra,

md

endemic typhus fever) epidemiology of Rocky

Mountain ©potted fever and the production of a protective vaccine for the
disease) and a remedy for acute mercurial poisoning*
Most recent studies of particular interest to the average
oitisea include those in rheumatic heart disease) illness according to
age group) investigation© and experiments in Rocky Mountain spotted fever
and typhus control) immunisation against scarlet fever, infantile paralysis*
and Weil«© disease,..In the field of industrial hygiene - the protection
of the health of workers exposed to factory materials and conditions
'hazardous to health ** studies have been made which constitute a chapter
by themselves.
Fro» these and other investigations certain results are
significant. Studies during the past year disclosed that rheumatic hs&rt
disease, for example, ranks fourth a© a cause of death# It® fatality i®
exceeded only by tuberculosis, pneumonia, and syphilis. Rheumatic heart
disease among college student© was investigated and questionnaires involving
101,163 students revealed from returns received a rate of 11*6
of which 9*2 was for

mm

p&r thou0

and U.9 for women students* this disease#

persons under twenty, Is found to cause more deaths than whooping c<^«

j
|

Research

~ 2 -

effects of lead-arsenate in a study of insecticide sprays.
These are but a few of the sweeping studies conducted by the
staff members* They penetrate
to illumination,

fro m

mm

and ills environment fro® parasites

disease and illness to cause, and from cause to

prevention and control - each & serious effort to insure better health.
These activities are carried on by the national Institute of
Health, which evolved from a small laboratory established at the Karine
Hospital in Hew Xork in 1887. Later transferred to fashington and named
the Hygienic Laboratory, in 1930 the name, by Congressional Act, was
changed to Rational Institute of Health* For thirty-six years it has
functioned as the major research organisation of the Public Health Service*
Its broad function, according to law, is Bthe investigation of infectious
and contagious diseases and matters pertaining to the public health*
The Rational Institute of Health has a scientific staff of 141*
eighty-one of when are commissioned medical officers* The total pereowml
of the Institute numbers 672* Their studies are highly specialised sad
require;.; exact scientific training to understand their significance*

M & ~

thaioes,,their bearing upon ultimate health is of utmost importance to all
American citi&en»} for once the investigations disclose satisfactory raault
in the field of preventive medicine, they become common property for the
banefit/jof all.
The genera! scope of the research prosecuted at the national
Institute of Health falls under four major divisional The Division of
Pathology and Bacteriology, the Division of Pharmacology, the Division of
Chemistry, and the Division of Zoology#

Tre&sury B#p&rtment
0* S. Public Seaith Service
Washington

Far

m im m t

A.M« Paper®

Saturd&y, Àugusi 13, 193S.

RE^MIiCK or f i l Ik â . M

S Ü

M M

fitle VI» Section 603» of the Social Sscurity lot» authoris&ôs
au

appropriation of t2}000|(KK) to b# spent by the 0* S* Public

lealià Servie# "for investigation

oî

cüeease#

m â

problème of #anitailôflB» I

Ssder this stimulus» the Hational Institut# ©F S#altbf wkioh ts !
the reaearch division of the Servie#» M s carried on au

t m &zi&g

variety of I

studios both i» fieM and laboratory, ail dir#ct#d tovard the comme» goal |
of oontrolliag diee&ss and improving kealth,

m â

touchiag virtu&lly evary

aajor salieat of the nation*s selfare*

Th©se studios covor a rang# of activities varying from minute
investigations of b&cteria to general» statistical inquiriee lato th#
effiaiency of public health administraiionj fro® highly toabiiical vaccine ■
reaearshes to the control of «osquitoea* from analyses of sugar
hydratas, to studios reiaiing to rbeusatls fever

m â h m rt

md

carbo-

disses®.

fhey vary from statieticaül inquirles iftto oorbidity and «ortalityj
to Chemical ©raninations of vaterj fro® studios of aiik and

m dX k

s&nitatiosj

for ta# réduction of milk-borae dUeases to advisory assistance to State»
in developing niik control programsj fros étudiés of dust in dust-proi^^j
industrie® to détermine tkeir physical effects and properties, to *oiyB
expérimenta by members of tke rese&rck staff in testing on tb^selves

I

These transfers are in the form of special
3 pe rcent Treasury notes

The United States Public Health Service today
summarized its research activities under Title VI of the Social
Security Act, which will be three years old tomorrow and under
which an annual appropriation of $2,000,000 has been made “for
investigation of diseases and problems of sanitation*“

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
JOE RELEASE, MORNING- NEWSPAPERS,
Saturday, August 13, 1938.______
8-12-38

press Service
No. 14-34

The United States Public Health Service today summarized its research
activities under Title VI of the Social Security Act, which'will'be three years
old tomorrow and under which an annual appropriation of $2,000,000 has been made
"for investigation of diseases and problems of sanitation.,f
Under this legislative stimulus, the National- Institute of Health, which
is the research division of the Service, has expanded its studies both in field
and laboratory, all directed toward the common goal of controlling disease and
improving health, and touching virtually every major salient of the nation1s
welfare.
These studies cover a range of activities varying from minute investiga­
tions of bacteria to general, statistical inquiries into the efficiency of public
health administration; from highly technical vaccine researches to the control
of mosquitoes; from analyses of sugar and carbohydrates to studies relating to
rheumatic fever and heart disease.
They vary from statistical inquiries into morbidity and mortality to chemi­
cal examinations of water; from studies of milk and milk sanitation for the re­
duction of milk—borne diseases to advisory assistance to States in developing milk
control programs; from studies of dust in dust-producing industries to determine
their physical effects and properties to voluntary experiments by members of the
research staff in testing on themselves the effects of lead-arsenate in a study of
insecticide sprays.
These are but a few of the sweeping studies conducted by the staff members#
^hey penetrate man and his environment from parasites to illumination, from dis­
ease and illnoss to cause, and from cause to prevention and control — each a

-

2

serious effort to insure better health.

-

...

These activities are carried on-by the National Institute of Health, which
evolved from a small laboratory established at the Marine Hospital in New York
in 1887.

Later transferred to Washington and named the Hygienic Laboratory, in

1930 the name, by Congressional Act, was changed to National Institute of Health.
For thirty-six years it has functioned as the major research organization of the
Public Health Service.

Its broad function, according to law, is ,Tthe investiga­

tion of infectious and contagious diseases and matters pertaining to the public
health. |
The National Institute of Health has a scientific staff of 241, eighty-one
of whom are commissioned medical officers.
numbers 672.

The total personnel of the Institute

Their studies are highly specialized and require exact scientific

training to understand their significance.

Nevertheless, their bearing upon

ultimate health is of utmost importance to all American citizens; for once the
investigations disclose satisfactory results in the field of preventive medicine,
they become common property for the benefit of all.
The general scope of the research prosecuted at the National Institute of
Health falls under eight major divisions:

Infectious Diseases, Pathology,

Biologies Control, Pharmacology, Chemistry, Zoology, Industrial Hygiene, and
Public Health Methods.
Certain outstanding discoveries have evolved from the research of Insti­
tute workers which are of great value.

Among these have been advances in hook­

worm studies; the close relationship between contagious abortion in cattle and
undulant fever of man; the standardization of a number of biologic products*
the infectious period of measles whereby quarantine for this disease has been
greatly shortened; the causes of tularemia, pellagra? the transmission of
endemic typhus fever; geographical distribution of Rocky Mountain spotted fever
and the production of a protective vaccine for the disease; and a remedy for

3

acuto mercurial poisoning.
Most recent studios of particular interest to the average citizen include
those in rheumatic heart disease; illness according to age group; investigations
and experiments in Rocky Mountain spotted fever and typhus control; immunization
against scarlet fever, infantile paralysis, and Weil*s disease.

In the field

of industrial hygiene — the protection of the health of workers exposed to
factory materials and conditions hazardous to health — studies have been made
which constitute a chapter by themselves.
Prom these and other investigations certain results are significant*

Studies

during the past year disclosed that rheumatic heart disease, for example, ranks
fourth as a cause of death.
monia, and syphilis*

Its fatality is exceeded only by tuberculosis, pneu­

Rheumatic heart disease among college students was investi­

gated and questionnaires involving 104,163 students revealed from returns received
a rate of 11*6 per thousand, of which 9*2 was for men and 14*9 for women students*
This disease, among persons under twenty, is found to cause more deaths than
whooping cough, measles, meningitis, diphtheria, scarlet fever, and infantile
paralysis combined.
A study of the health of young people according to age groups involving
9»000 families scattered over eighteen States indicated that the least amount of
illness occurs between the ages of 15 and 24, while the greatest amount appeared
in children under 5 years of age.
A comparison of the more serious diseases of childhood showed that for
w coping cough and measles, the spread bety/een the rates for the younger and the
older groups has increased slightly, and that these two diseases continue to
a

the very young children as much as ever.

However, for meningitis, diph­

theria, scarlet fever, and poliomyelitis, it was found that this spread has dofinitoly decreased, especially for the latter two diseases.

The fatality of infan—

0 paralysis has decreased among the younger age groups, according to the

findings*
The area of Rocky Mountain spotted fever infection was found to have in­
creased during the past year to include Ohio and Massachusetts and a number of
counties in various States where the disease already occurs.
Studies in trichinosis continued.

The wide prevalence of trichinosis* a

disease caused "by a parasite acquired iron eating uncooked pork, has made it of
public health importance#

Recent autopsy studies disclosed the presence of the

parasite in about 17 per cent of the bodies, examined.

Its prevalence is high

along the North Atlantic coast and the Southern Pacific coast, low in the South,
and intermediate elsewhere*
Weil*s disease, an acute infectious disease, sporadic in the United States,
was heretofore regarded as a tropical malady until cases were found in New York,
Michigan, Pennsylvania, South Carolina, West Virginia, Texas, Iowa, and Florida#
The staff of the Institute at once put at the disposal of physicians in the
affected areas, information concerning its prevalence and methods of diagnosis.
The study of active immunization against scarlet fever in the past year
was enlarged to include 11,500 children.

It was found that the attack rate among

tested children was ten times less than in a, control group*

Also, because of

typhus increase during the last decade, attention was focused on the cause and the
development of methods for better control.

Eleven species of native rodents were

found capable of harboring virus of endemic typhus.
Other research activities include research projects in milk sanitation,
child hygiene, improved methods for controlling malaria, in tuberculosis, and in
clinical research#

Still other activities include research on practical and effi­

cient methods of destroying insects aboard aeroplanes, on health of transients,
0n communicable diseases, water sxipplies, and sewage disposal*

A 5 -

The Instituto nade on analysis of data bearing on the incone » expenditures,
and personnel of hospitals*

It was found from the analysis that general and

special hospitals receive nore than one-half of their funds fron patrons, about
one-third fron taxes, and one-eighth fron other sources*

Bed costs were highest

in federal hospitals and lowest in hospitals operated by local and,State govern­
ments*

In general, it was found that compensation-for administrators of health

agencies were higiier for non-official than for official organizations*

The appar­

ent cause for this lies in the fact that resources are scattered and efforts dup­
licated because of a lack of connon direction in prosecuting health work.
These are but a few of the numerous research activities and studies being »
carried on by the national Institute of Health.

Others of great significance,

unifying and rounding cut the whole progran are of importance*

for example, the

Institute extends cooperative service to various Federal departments and bureaus,
to States, local authorities, welfare agencies, professional and lay organizations,
municipal and private hospitals, and individuals throughout the United States, and
in turn receives their cooperation in a number of ways.

Much of the work which

the Institute has been performing could not have been done effectively without
this reciprocal action*

Its relationship has been consultative and advisory*

This

cooperation has embraced the Departments of Labor, Justice, Interior, Commerce,
Agriculture, Havy, Army; the Housing Commission; several States in the development
of Industrial Hygiene; local governments in conducting milk sanitation, seminars,
ottd various technical health training courses* * It has cooperated with the Rock­
efeller Foundation, Bureau of Entomology and Plant Quarantine, and the T.V.A*

There

as ^e©n an exchange of mutual services between the Institute and the Milbank Fund,
the Federation of Sewage Laws Association, the International Association of Milk
anitariuns, the Pan-American Sanitary Bureau, the American Standards Association,
he American Cas Association, and the national Resources Committee.

Many universi­

ties have participated in cooperative studies and seventy-five hospitals fron Coast
to ^°3-st have sent autopsy material for trichinosis studies.
— 0 O 0—

1^- 3^

TREASURY DEPARTMENT
O F F IC E O F T H E S E C R E T A R Y

WASHINGTON

COM MISSIO NER O F
a c c o u n t s a n p d e p o s it s

August 8, 1938«

TO MB« GASTON;
During the month of July, 1938, the
following market transactions took place in Govern­
ment securities:
Total purchases.........$ 1,176,600
Total sales ••••••••••••••
Net purchases •••.«•

25,000
$ 1,151,600

WmKÊÊt, tm à m m m

Ton wmMmn* wmmn m

m

»

i%#se s©met

Taeaday, tetast 16» 1958»
8 /1 5 /3 3

t e S©©r©taa3r ©f tîi® fmiarjr .asnmtme#i. M a t evening

tet te

t©ad©rs t e #100,000,000, or thereaboots, of 91~day t e a o m r M i l s , to
feo data* Âagust

if and

t© matar® Horater 16, 1906, whleh w©r© offerad

on august 12, w©r© ©poaed at tb© F©d©ral Hasarr© banks oa August 16»
t e datails of tbis issu© ars as folles t

Total applied t e
Total aoooptod

• #285,f22,000
*
100,495,000

long© of aeoôpted Mdst

Bigk

*

99.991

Low

»

99.93?
99,968

Ararag© pria©

-

(60p©re«ut of tb© aaount bid

5 ' y^h—

.

«quival ©nt rat© approximately 0.056 pareMtj
*
*
«
0.051
*

I

*

»

6.04?

for at t e loir pria© «a© aoo©pt©d)

*

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING- NEWSPAPERS,
Tuesday, August 16, 1938.
8-15-38

Press Service
No. 14-36

The Secretary of the Treasury announced last evening that the tenders
for $100,000,000, or thereabouts, of 91-day Treasury hills, to he dated
August 17 and to nature November 16, 1938, which wore offered on August 12,
were opened at the Federal Reserve hanks on August 15.
The details of this issue arc as follows:
Total applied for
Total accepted

- $285,722,000
- 100,493,000

Range of accepted bids:
High
Low
Average price

- 99.991
- 99.987
- 99.988

Equivalent rate approximately 0*036 percent
"
«
*
”
0.051
«
n
ft
it
0.047
n

(60 percent of the amount hid for at the low price was accepted)

— 0O 0—

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
August 22, 1938_____ r 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

August 24,_ 1938
_

.

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.

(Atten­

tion is invited to Treasury Decision 4550 , ruling that Treasury bills are
not exempt from the gift tax.)

No loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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.

3ctaa^CtoJgra:DG»^ ^
TRl&SIJRY DEPARTMENT

EOR RELEASE, m 6e HING PAPERS,
Friday , August 19, 1958.
3gP5PE S^ 13E X ^ ^ X X X X X X X 3 C X O X O ^ X

:£g$x
The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100,000,000 , or thereabout
They will he 91 -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 Monday, August 22, 1938

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will be dated
mature on

August 24, 1958

, and will

November 25, 1938, 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 be considered*
Each tender must he 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' hot he used.- — ---- ----—

~~— "

Tenders will he accepted..without'cash deposit from incorpor­
ated hanks and trust companies and from responsible and recognised
dealers in investment securities.

Tenders from others must he accon-

pernied by a deposit of 10 per cent of the face amount of Treasury bill»

FOR RELEASE, MORNING PAPERS,
Friday, August 19, 1938*

TREASURY DEPARTMENT

The Secretary of the Treasury gives notice that tenders are invited for
Treasury hills to the amount of $100,000,000, or thereabouts.

They will he

9l-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, August 22, 1938.
Tenders will not he received at the Treasury Department, Washington.
The Treasury hills will he dated August 24, 1938, and will mature on
November 23, 1938, 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
tranches 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 securi­
ties. Tonders from others must he accompanied by a deposit of 10 per cent of the
faco amount of Treasury hills applied for, unless the tenders are accompanied by
911 exP**ess guaranty of payment by an incorporated hank or trust company.

- 2 -

Immediately after the closing hour for receipt of tenders on August 22»
1938, 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 submit­

ting 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 2f* 1938.
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,

(Attention is invited to Treasury

Decision 4550, ruling that Treasury bills are not exempt from the gift tax.)
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 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.
— oOo—

tS&AStJfflr DSPáBTMMf
Washington

tm liiaet,

mohkito hibspapsbs,

Freos Sertie«

Tuesday, Augiiet SS. 1938.
bM / m

Tim

/*/- 3 7

Secretary of tbs Treasury announced last evening that the

tandera for #100,000,000, or thereabouts, of 91~day Treasury bills, to be
datad August M and to maturo Korwaber S3, 1938, which «rara offarad am
August 19, war® apañad at the Foderai lasarte banks on August S3«
The details o f Hits issue a r t as follow s $
fatal appi lad for
fötal accepted

* #813,880,009

m 100,097,000

langa o f aeeaptod bids:

It.

* 99.990
* 99.987
* 99.988

Equi t a l ant rato approximately 0.
»
*
*
9.
*
*
«
0*

1 1 1

High
low
Ataruga p r ia i

(49 peroent o f the amount bid fo r a t tho low prie# was asasptad)

TREASURY DEPARTMENT
Washington

FOR RELEASE» MORNING NEWSPAPERS»
Tuesday, August 23, 1938.
8-22-38

Pi*sss Service
No. 14-37

The Secretary of the Treasury announced last evening that the tenders
for $100,000,000, or thereabouts, of 91-day Treasury hills, to he dated
August 24 and to nature November 23, 1938, which were offered on August 19, were
openod at the Eederal Reserve hanks on August 22.
The details of this issue are as follows:
Total applied for
Total accepted

- $245,680,000
- 100,057,000

Range of accepted bids:

Low
Average price

- 99*990
- 99*987
- 99.988

Equivalent rate apnroxizaately 0.040 percent
»
«
‘ «
0.051 ~ »
tt
n
»
0.048
«

(49 percent of the amount bid for at the low prico was accepted)

— 0 O 0—

The recommendation of the Treasury, •vfoieh Congress adopted in
Section 820 of the Revenue Act of 1938, was the result of research "by
Treasury experts and conferences with members of the bar extending over
a period of many months*
The regulations approved today are as follows:

- 2

“We confidently expect that these provisions of the law will eliminate
many of the inequities and controversies that have arisen from the operatic
of the statute of limitations and have proved to he a source of irritation
to hoth the taxpayers and the Treasury*
“Prior to the enactment of Section 820, a taxpayer might have paid his
tax in 1932 on a certain item of income and the Government might later cl
that the item of income was erroneously taxed in
1938*

1932

and should he taxed

If it was finally determined that the proper year for taxing the itj

of income was

1938

, the Government would often receive two taxes because t

taxpayer would not he ahle to recover the tax paid in

1932

due to the statj

of limitations barring such recovery*
“Similarly, it
in

1932,

and in

frtfffimbty liagpoaed that the taxpayer^claimed a deduct!

1936,

after the statute of limitations had run, he might

claim a deduction again, asserting that
talcing of the deduction.

1936

was the proper year for the

If it was finally determined that 193& ms

proper year for the claim, the Government would in effect he forced to al
a double deduction since it could not recover from the taxpayer any additj
tax for

1932

because of the statute of limitations* “

Mr* Magill also stated that closing agreements would he entered iato

as possible such adjustment would he expedited by settling the tax lia^
for the open year and the adjustment for the closed year in one procee
Moreover, it was pointed out that Section 820 was designed to provide e<T
ahle relief and will not he applied to penalize taxpayers in cases ia.
an inconsistent position is inadvertently taken and then withdrawn Pr*°r
a determination*

/fFor immediate release
Wednesday, August 24, 1938,

Acting Secretary Magi 11 today approved new income tax regulations
carrying out provisions of Section 820 of the Revenue Act of 1938.
As a result, the law and regulations now allow for adjustment of
cases otherwise closed by the statute of limitations when such correction!
is necessary to prevent a double tax advantage either to the taxpayer or
the Government because of an inconsistent position taken by the party
claiming such an advantage.

Throughout the Government’s income tax ex- I

perience, the period in which an item of income should be taxed or a deduction allowed frequently has been a matter of controversy.!ttt A great
amount of time-wasting litigation and consequent expense has beep incurred both by the Government and the taxpay^ T » cases where, despite the
fact that it is admitted that an item of income is taxable or a deduction
is allowable, there is a dispute as to the proper year to tax the item ofj
income or allow the deduction.

In many cases, it has been finally deter-

minted that a deduction allowed or an item of income taxed in one year
should properly be allowed or taxed in a subsequent year

'If the tax

was paid or the deduction taken originally on a return on which the
statute of limitations had expired, there was no protection for the
Government against two deductions or for the taxpayer against double
assessment on the same item of income*
3w

r^g^ationiC'.yJfawwa^'d •+&4 ^iia(;piA»'<»ti<aiiliaiiftyi*«,>deal with the ap­

plication and effect of one of the most important and beneficial provi­
sions of the income tax laws enacted in some time

TREASURY DEPARTMENT
Washington

TOR IMEDIATE RELEASE,
Wednesday, August 24, 1938.

Press Service
No. 14-38

Acting Secretary Magi11 today approved new incone tax regulations carry­
ing out provisions of Section 820 of the Revenue Act of 1938.
As a result, the law and regulations now allow for adjustment of cases
otherwise closed hy the statute of limitations when such correction is necessary
to prevent a double tax advantage either to the taxpayer or the Government be­
cause of an inconsistent position taken by the party claiming such an advantage*
Throughout the Government’s income tax experience, the period in which an item
of income should be taxed or a deduction allowed frequently has been a matter
of controversy*
!,A great amount of time—wasting litigation and consequent expense has
"been incurred both by the Government and the taxpayer,” Mr. Magill said today*
"in cases where, despite the fa.ct that it is admitted that an item of income
is taxable or a deduction is allowable, there is a dispute as to the proper
year to tax the item of income or allow the deduction.

In many cases* it has

teen finally determined that a deduction allowed or an item of income taxed in
°ne year should properly be allowed or taxed in a subsequent year*
wIf

tax was paid or the deduction taken originally on a return on

w len the statute of limitations had expired, there was no protection for the
Government against two deductions or for the taxpayer against double assessment
0n tile same item of income.
’Therefore, it can readily be seen that these new regulations deal with
application and effect of one of the most important and beneficial provisions
°f the income tax laws enacted in some tine.
”We confidently expect that these provisions of the law will eliminate

2
ft*

many of the inequities and controversies that have arisen from the operation of
the statute of 1ini tat ions, and have proved to "be a source of irritation to "both
taxpayers and the Treasury.

:•••

■

’’Prior to the enactnent of Section 820» a taxpayer night have paid his
tax in 1932 on a certain iten of incone and the Government night later claim
that the iten of incone was erroneously taxed in 1932 and should he taxed in
1938,

If it was finally determined that the proper year for taxing the iten

of income was 1938» the Government would often receive two taxes because the
taxpayer would not he able to recover the tax paid in 1932 due to the statute
of limitations barring such recovery.
"Similarly, the taxpayer nay have claimed a deduction in 1932, and in
1936, after the statute of limitations had run, ho night claim a, deduction again,
asserting that 1936 was the proper year for the taking of the deduction.

If it

was finally determined that 1936 was the proper year for the claim, the Govern—
nent would in effect be forced to allow a double deduction since it could not
recover from the taxpayer any additional tax for 1932 because of the statute of
limitations."
Mr. Magill also stated that closing agreements would be entered into
wherever necessary to effect an adjustment under the section and that so far as
possible such adjustment would be expedited by settling the tax liability for
ho open year ana the adjustment for the closed year in one proceeding.

More­

over, it was pointed out that Section 820 was designed to provide equitable
re iof and will not be applied to penalize taxpayers in ca,ses in which an in­
consistent position is inadvertently taken and then withdrawn prior to a deter­
mination.
The reconr.iend.ation of the Treasury, which Congress adapted in Section 820
the Revenue Act of 1938f was the result of research by Treasury experts and
nferences with members.of the bar extending over a period of many months.

(T. D. 4856)

Income Tax
Revenue Act of 1938
Regulations under section 820 relating to
the mitigation of the effect of limitation
and other provisions in income tax cases»
TREASURY DEPARTMENT
Office of Commissioner of Internal Revenue
Washington, D. C,
TO COLLECTORS OP INTERNAL REVENUE
AND OTHERS CONCERNED:
Pursuant to section 820 of the Revenue Act of 1938,, enacted May 28,^1938
(Public, No« 554, Seventy-fifth Congress, Chapter 289, third session)", section
3447 of the United States Revised Statutes, and other provisions of the inter­
nal revenue laws, the following regulations, with respect to the mitigation of
the effect of limitation and other provisions in income tax cases, are hereby
prescribed, various sections or subsections of the internal revenue laws
applicable thereto being quoted in, and made a part of, such regulations:
Art« 820-1« Purpose and scope of section 820«— Section 820 provides for
correction of the effect of certain types of errors specified in section 820 (b)
and articles 820 (b)-l to 820 (b)-5, when one or more provisions of the inter­
nal revenue laws, such as the statute of limitations, would otherwise prevent
such correction. Corrections are authorized under section 820 only when the
Commissioner, if the correction would result in an allowance of a refund or
credit for the year with respect to which the error was made, or the taxpayer,
if the correction would result in an additional assessment for such year, has
maintained a position inconsistent with the error« No correction is per­
missible unless the inconsistent position is adopted by a determination made
on or after August 27, 1938« (See section 820 (a) and articles 820 (a)-l to
820 (a)-3,.inclusive, for definition of the term ”determination"»)
/Section 820 (a) (l) (A) of the Revenue Act of 1938//"
11SEC, 820.

11(a)

MITIGATION OP EPPECT OP LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASES.
Definitions,— Por the purpose of this section —

"(1) Determination,— The term ’determination under the
income tax laws’ means —
M(A) A closing agreement made under section 606
of the Revenue Act of 1928, as amended;
*

*

*

Such term shall not include any such agreement made * * * prior
to ninety days after the date of the enactment of this Act.”
(over)

(T. D. 4856)
¿Section 901 of the Revenue Act of 1938, in part./
"SEC, 901,
"(a)

DEFINITIONS.
When used in this Act—

"(l) The term ’person* means an individual, a trust or
estate, a partnership, or a corporation,
"(2) The term Corporation1 includes associations,
joint-stock companies, and insurance companies,
"(3 ). The term ’partnership1 includes a syndicate, group,
pool, joint venture, or other unincorporated organization,
through or by means of which any business, financial operation,
or venture is carried on, and which is not, yd thin the meaning
of this Act, a trust or estate or a corporation; and the term
’partner’ includes a member in such a syndicate,- group, pool,
joint venture, or organization,
*

*

*

"(6) “The term ’fiduciary’ means a. guardian, trustee,
executor, administrator, receiver, conservator, or any person
acting in any fiduciary capacity for any person,
*
”(ll)
Treasury,

*

*

The term ’Secretary’ means the Secretary of the

"(12) The term ’Commissioner’ means the Commissioner
of Interned Revenue,
*

*

*

"(b) The terms ’includes’ and ’including’ when used in a defini­
tion contained in this Act shall not be deemed to exclude other things
otherwise within the meaning of the term defined,"
¿Section 606 (a) and (b) of the Revenue Act of 1928, as amended
by sections 801 and 802 of the Revenue Act of 1938,/
"SEC. 606.

CLOSING AGREEMENTS•

"(a) Authorization,— The Commissioner (or any officer or employe©
of the Bureau of Internal Revenue, including the field service., a u th o r­
ized in writing by the Commissioner) is authorized to enter into an
. agreement, in writing with any person relating to the liability of such
person (or of the person or estate for whom he acts) in respect of any
internal-revenue tax for any taxable period.

f4 (r

(T. D. 4856)

~3~

11(b) Finality of agreements.— If such agreement is approved hy
the Secretary, the Under Secretary, or an Assistant Secretary, within
such time as may he stated in such agreement, or later agreed to, such
agreement shall he final and conclusive, and, except upon a showing of
fraud or malfeasance, or misrepresentation of a material fact —
11(l) the case shall not he reopened as to the matters
agreed upon or the agreement, modified,'hy any officer, employee, "
or agent of the United States,, and
11(2) in any suit, action,’ or proceeding, such agreement, .‘
or any determination, assessment, collection, payment, abatement.,
refund, or credit made in accordance therewith, shall not he
annulled, modified, set aside, or disregarded*11
Art* 820 (a)-l. Closing agreement as a determination*— For the purposes
of section 820, a determination may take the form of a closing agreement author­
ized hy section 606 of the Revenue Act of 1928, as amended* Such an agreement
may relate to the total tax liability of the taxpayer for a particular taxable
year or years or to one or more separate items affecting such liability* If it
becomes necessary or desirable to effect a determination in order to obtain or
accelerate an adjustment authorized by section 820, a closing agreement may be
used for such purpose whenever a taxpayer and the .Government have concurred in
the disposition of an item or items* A closing agreement becomes final within
the meaning of section 820 on the date of its approval by the Secretary, the
Under Secretary, or an Assistant Secretary*
/Section 820 (a) (l) (B) of the Revenue Act of 1938*/

J J SEC. 820.
//(a)-

MITIGATION OF EFFECT OF LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASES./
Definitions.— For the purpose of this section —

11(l) Determination*— The term !determination under the
income tax laws1 means -~ [
11(B) A decision by the Board of Tax Appeals or a
judgment, decree, or other order by any court of competent
jurisdiction, v/hich has become final; * * *

Such term shall not include any * * * decision, judgment, decree,
or order which has become final * * * prior to ninety days after
the date of the enactment of this Act.*11
Art* 820 (a)-2. Decision by Board or Court as a determination*— A deter­
mination may take the form of a decision by the Board of Tax Appeals or a judg®ent, decree, or other order bv any court of competent jurisdiction, which has
become final.
(over)

—4r*

(T. D. 4856)

The date upon which a decision by the Board of Tax Appeals hecomes final
is prescribed in section 1005 of the Revenue Act of 1926, as amended.
The date upon which a judgment of a court becomes final must be determined
upon the basis of the facts in the particular ca.se» Ordinarily, a judgment of
a United States District Court becomes final upon the expiration of the time
allowed for taking an appeal, if no such appeal is duly taken within such time;
and a judgment of the United States Court of Claims becomes final upon the
expiration of the time allowed for filing a petition for certiorari if no such
petition is duly filed within such time»
¿Section 820 (a) (l) (C) of the Revenue Act of 1938./
¿"■SEC. 820.

¿" (a)

MITIGATION OF EFFECT OF LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASESJ
Definitions»-— For the purpose of this section —

" (l) Determination.— 'The term determination under the
income tax laws* means -~J
"(0) A final disposition by the Commissioner of a
claim for refund. For the purposes of this section a
claim for refund shall be deemed finally disposed of by
the Commissioner —
" (i) as to items with respect to which tho
claim was allowed, upon tho date of allowance of
refund or credit or upon the date of mailing notice
of disallowance (by reason of offsetting items) of
the claim for refund, and
"(ii) as to items with respect to which the
claim was disallowed, in whole or in part, or as to
items applied by the Commissioner in reduction of the
refund or credit, upon expiration of the time for
instituting suit with respect thereto (unless suit
is instituted prior to the expiration of such time).
Such term shall not include any * * * claim for refund
finally disposed of, prior to ninety days after the date
of the enactment of this Act."
Art* 820 (a)-3. Final disposition of claim for refund as a determ ination
A determination may take the form of a final disposition of a claim for refund
Such disposition may result in a determination with respect to two classes of
items, i.e», items included by the taxpayer in a claim for refund and items
applied by the Commissioner to offset the alleged overpayment. The time at
which a disposition in respect of a particular item becomes final may depend
not only upon what action is taken with respect to that item but also upon
whether the claim for refund is allowed or disallowed.

(& 33* 4856)
(a)

*5—

11 Q_ms wi th respec t to which, the .taxpayer’s d a i in is allowed*

(1) The disposition with, respect to an item as to which the
taxpayer’s contention in the claim for refund is sustained, "becomes
final on the date of allowance of the refund or credit if ■—
(i) The taxpayer’s claim for refund is unqualifiedly
allowed; or
(ii) The taxpayer’s contention with respect to an item
is sustained and with respect to other items is denied, so that
the net result is an allowance of refund or credit; or
(iii) The taxpayer’s contention with respect' to an item
is sustained, hut the Commissioner applies other items to offset
the amount of the alleged overpayment and. the items so applied do
not completely offset such amount hut merely reduce it so that
the net result is an allowance of refund or credit»
(2) If the taxpayer’s contention in the claim for refund with
respect to an item is sustained hut the Commissioner applies other items
to offset the amount of the alleged overpayment so that the net result is
a disallowance of the claim for refund, the date of mailing, by registered
mail, of the notice of disallowance (see section 3226 of the Revised
Statutes, as amended), is the date of the final disposition as to the item
with respect to which the taxpayer’s contention is sustained*
(b)

Items with respect to which the taxpayer’s claim is disallowed*—

The di.spositi on with respect to an item as to which the taxpayer’s
contention in the claim for refund is denied "becomes final upon the
expiration of the time allowed "by section 3226 of the Revised Statutes,
as amended, for instituting suit on the claim for refund, unless suit
is instituted prior to the expiration of such period, if —
(•i)

The taxpayer’s claim'for refund is unqualifiedly di sallowed; or

(ii) The taxpayer’s contention with respect to an item is denied
and with respect to other items is sustained so that the net result is
an Allowance of refund or credit; or
!(iii) The taxpayer’s contention with respect to an item is sustained
in part and denied in part* for example, if the taxpayer claims a de­
ductible loss of $10,000 and a consequent overpayment of $2,500 and the
Commissioner ..concedes that a deductible loss was sustained but in the
amount of $5,000 only, or that a deductible loss of $10,000 was sus­
tained, but .under the Commissioner’s computation the consequent overpay­
ment is only $2,000, the disposition of the claim for refund with respect
to both the allowance*óf the $5,000 and the disallowance of the remain­
ing $5,000, or the -s Ilowanee of the $2,000 overpayment and the denial of
the. $500, 'becomes final upon the expiration of the time for instituting
snit on the claim for refund unless suit is instituted prior to the
expiration of such period*
(over)

i
—6—

(T. D. 4856)
(c)
credit»— -«

Items applied by the Commissioner in reduction of the refund or

If the Commissioner applies an item in reduction of the overpay­
ment alleged in the claim for refund, and the net result is an allowance
of refund or credit, the disposition with respect to the item so applied
"by the Commissioner becomes final upon the expiration of the time allowed
by section 3226 of the Revised Statutes, as amended, for instituting
suit on the claim for refund, unless suit is instituted prior to the
expiration of such period» If such application of the item results in
the assertion of a deficiency, such action does not constitute ss final
disposition by the Commissioner of a claim for refund within the mean­
ing of section 820 (a) (l) (C) (ii) of the Act, but subsequent action
taken with respect to such deficiency may result in a determination under
section 820 (a) (l) (A) or (B) of the Act*
The necessity of waiting for the expiration of the two-year period of
limitations provided in section 3226 of the Revised Statutes, as amended, may
be avoided in such cases as are described under (b) or (c) of tfcis article by
the use of a closing agreement to effect a determination.
¿Section 820 (a) (2) and (3) of the Revenue Act of 1938*7
//SEO. 820,

(a)

MITIGATION OR EFFECT OF LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASES./
Definitions.— For the purpose of this section

"(2) Taxpayer.— Notwithstanding the provisions of section
901, the term *taxpayer* means any person subject to a tax under
the applicable Revenue Act»
"(o) Related taxpayer.— The term *related taxpayer* means
a taxpayer who, with the taxpayer with respect to whom a determina­
tion specified in subsection (b) (l), (2), (3), or (4) is made,
stood, in the taxable year with respect to which the erroneous
inclusion, exclusion, omission, allowance, or disallowance therein
referred to was made, in one of the following relationships* (&)
husband and wife; (B) grantor and fiduciary; (C) grantor and
beneficiary; (D) fiduciary and beneficiary, legatee, or heir;
(S) decedent and decedent*s estate; or (F) partner.'1
Art, 820 (a)—4. Related taxpayer»— An adjustment in the case of the tax­
payer with respect to whom the error was made may be authorized under section
820 although the determination is made with respect to a different taxpayer
provided that such taxpayers stand in one of the relationships specified in
section 820 (a) (3). The concept of "related taxpayer" has application on^. \
section 820 (b) (l), (2), (3 ), or (4 ) and does not apply to section 820 (b) ( '
If such relationship exists, it is not essential that the error be with respec
to a transaction possible only by reason of the existence of the relationship*
For example, if the error with respect to which an adjustment is sought undef
section 820 grow out of an assignment of rents between taxpayer A and taxpay0 1
who are partners, and the determination is with respect to taxpayer A, an adjustment with respect to taxpayer B may be permissible despite the fact that

(T. D. 4856)

-7- '

the assignment had nothing to do with the business of the partnership« The
relationship need not exist throughout the entire taxable year with respect
to which the error was made, but only at some time during that taxable year,
For example, if a taxpayer on February 15 assigns to his 'fiancee the net rents
of a building which the taxpayer owns, and the two are. married before the end
of the taxable year, an adjustment may be permissible if the determination
relates to such rents despite the fact that they were not husband and wife at
the time of the assignment* See article 820 (b)-8 for the requirement incertain cases that the relationship exist at the time an inconsistent position
is first mantained*
¿Section 820 (b) of the Revenue Act of 1938•/
/»"SEC. 820.

MITIGATION OF EFFECT OF LIMITATION AMD OTHER PROVISIONS
IN INCOME TAX CASES,/

11(b) Circumstances of Adjustment,— When a determination under the
income tax laws —

H I) Requires the inclusion in gross income of an item which
was erroneously included in the gross income of the taxpayer for
another taxable year or in the gross income of a related taxpayer;
or
u(2) Allows a deduction or credit which was erroneously
allowed to the taxpayer for another taxable year or to a related
taxpayer; or
"(3) Requires the exclusion from gross income of an item
with respect to which tax was paid and which was erroneously
excluded or omitted from the gross income of the taxpayer for
another taxable year or from the gross income of a related
taxpayer; or
n(4) Allows or disallows any of the additional deductions
alloY/able in computing the net income of estates or trusts, or
requires or denies any of the inclusions in the computation of
net income of beneficiaries, heirs, or legatees, specified in
section 162 (b) and (c) of this Act, and corresponding sections
of prior revenue Acts, and the correlative inclusion or deduc­
tion, as the case may be, has been erroneously excluded, omitted,
or included, or disallowed, omitted, or allowed, as the case may
be, in respect of the related taxpayer; or
n(5) Determines the basis of property for depletion, exhaus­
tion, wear and tear, or obsolescence,.- or for gain or loss on a sale
or exchange, and in respect of any transaction upon which such
basis depends there was an erroneous inclusion in or omission from
the gross income of, or an errQneous recognition or nonrecogni­
tion of gain or loss to, the taxpayer or any person who acquired
title to such property in such transaction and from whom rpediately
or immediately the taxpayer derived title subsequent to such
transaction—
(over)

(T. D* 4856)
and, on the date the determination "becomes final, correction of the effect
of the error is prevented by the operation (whether "before, on, or after
the date of enactment of this Act) of any provision of the internal-revenue
laws other than this section and other than section 3229 of the Revised
Statutes, as amended (relating to compromises), then the effect of the
error shall "be corrected hy an adjustment made under this section. Such
adjustment shall he made only if there is adopted in the determination a
position maintained hy the Commissioner (in case the amount of the adjust­
ment would he refunded or credited in the same manner as an overpayment
under subsection (c)) or hy the taxpayer with respect to whom the deter­
mination is made (in case the amount of the adjustment would he assessed
and collected in the same manner as a deficiency under subsection (c))f
which position is inconsistent with, the erroneous inclusion, exclusion,
omission, allowance, disallowance, recognition, or nonrecognition, as the
case may he. In case the amount of the adjustment would he assessed and
collected in the same manner as a deficiency, the a.djustment shall not be
made with respect to a related taxpayer unless he stands in such relation­
ship to the taxpayer at the time the latter first maintains the inconsistent!
position in a return, claim for refund, or petition (or amended petition)
to the Board of Tax Appeals for the taxable year with respect to which the
determination is made, or if such position is not so maintained, then at
the time of the determination*1'
/Section 162 (h) and (c) of the Revenue Act of 1938*/
"SEC* 162. .NET INCOME.
"Hie net income of the estate or trust shall he computed in the same
manner and on the same basis as in the case of an individual, except that*— I
Sjc

.

$

$

*

Sfe

" (h) There shall_be allowed as an additional deduction in computing
the net income of the estate or trust the amount of the income of the
estate or trust for its taxable year which is to he distributed currently
by the fiduciary to the beneficiaries, and the amount of the income collect“
!
ed hy a guardian of an infant which is to he held or distributed as the
court may direct, hut the amount so allowed as a deduction shall he in­
cluded in computing the net income of the beneficiaries whether distri­
buted to them or not. Any amount allotted as a deduction under this para­
graph shall not be allowed as a deduction under subsection (c) of this
section In the same or any succeeding taxable year;
"(c) In the case of income received by estates of deceased persons
during the period of administration or settlement of the estate, and in
the case of income which, in the discretion of the fiduciary, may he
either distributed to the beneficiary or accumulated, there shall he
allowed as an additional deduction in computing the net income of the
estate or trust the amount of the income of the estate or trust for its
taxable year, which is properly paid or credited during such year to
any legatee, heir, or beneficiary, but the amount so allowed as a
deduction shall he included in computing the net income of the legatee,
heir, or beneficiary."

(T. B.•4856)

, Art* 820 (b)-0. Circumstances of adjustment »--Section 820 may be
applied to correct the effect of an error if, on the da,te of the .determina­
tion, correction of the'effect of the error is prevented by the operation,
whether before, on, or after the date of enactment of section 820, of any
provision of the internal revenue laws other than section 820 and other
than section 3229 of the Revised Statutes, as sinended (relating to com­
promises). Examples of such provisions are: Section 275, 311 (b) and
(c), and 322 (b) and (d) of the Revenue Act of 1938 and the corresponding
provisions of prior Revenue Acts, section 3226 of the Revised Statutes,
as amended, section 610 of the Revenue Act of 1928, and section 906 (e)
of the Revenue Act of 1924-, as amended by section 601 of the Revenue Act
of 1928 (periods of limitation); sections 272 (f) and 322 (c) of the
Revenue Act of 1938 and corresponding provisions of prior Revenue Acts
(effect of petition to Board of Bax Appeals on further deficiency letters
and bn credits or refunds); section 606 of the Revenue of 1928, as amended
!y sections 801 and 802 of the Revenue Act of 1938 (closing agreements); and
sections 607, 608, and 609 of the Revenue Act of 1928 (payments, refunds' or
credits after period of limitation has expired)*

(over)

(T. D* 4856)

-

10

If the tax liability for the year with respect to which the error was
made has been compromised under section 3229 of the Revised Statutes* as
amended, no adjustment may be made under section 820 with respect to that
year*
Section 820 is not applicable if, on the date of the determination» cor­
rection of the effect of the error is permissible without recourse to such
section*
The determination may be with respect to the tax imposed by Title I,
Title IA, or section 602 of Title III, of the Revenue Act of 1938, and by
the corresponding provisions of any prior Revenue Acts, by Title III of the
Revenue Act of 1936, or by more than one of such provisions* Section 820
may be applied to correct the effect of the error only as to the tax or.taxes
for the year with respect to which the error was i&ade which corresponds to
the tax or taxes with respect to which the determination relates* Thus, if
the determination relates to the. tax imposed by Title I of the Revenue Act
of 1938, the adjustment may bo only with respect to the tax imposed by Title
'I of the Revenue Act applicable to the year with respect to which the error
was made; if the determination relates to section 602 of Title III of the
Revenue Act of 1938, the adjustment may be only with respect to the tax im*
posed by the corresponding provisions of the Revenue Act applicable to the
year with respect to which the error was made»
Art* 820 (b)~l* Double inclusion of item ofgross incoroe»~~Sectioa 820
(b) (l) applies if the determination requires the inclusion, in a taxpayer s
gross income, of an item which was erroneously included in the gross income
of the same taxpayer for another taxable year or of a related taxpayer for
the same or another taxable year.
Example (l); A taxpayer who keeps his books on the cash basis, errone­
ously included in his return for 1933 an. item of accrued rent* In 1938,
er
the period of limitations on refunds for 1933 has expired, the Commissioner
discovers that the taxpayer received this rent in 1934 and asserts a defi­
ciency for the year 1934, which is sustained by the Board of Tax Appeals in
1941* An adjustment is authorized with respect to the year 1933* If^the^
taxpayer had returned the rent for both 1933 and 1934 and by a determination
was denied’a refund claimed for 1934 on account of the rent item, a sim ilar
adjustment is authorized.
Example. (2) i A husband assigned to his wife salary to be earned by im
in the year 1936* The wife included such salary in her separate return yor
that year and the husband omitted It* The Commissioner asserted a deficiency
against the wife for 1936 with respect to a different item and she contes
that deficiency before the Board of Tax Appeals* The wife would- therefor©
barred by section 322 (c) of the Revenue Act of 1936 from filing a claim ©
refund for 1936* Thereafter, the Commissioner- asserts a deficiency agains
the husband on .account of the omission of such salary from his return for
1936* The husband unsuccessfully contests the deficiency before the •®oarl „
Tax Appeals. An adjustment is authorised with respect to the wife’s tax
1936.

(T, D* 4856)

-

11-

Art, 820 (b)~2. Double allowance of a deduction or credit«— Section
820 (b) (2) applies if the determination allows the taxpayer a deduction or
credit which was erroneously allowed the same taxpayer for another taxable
year or a related taxpayer for the same or another taxable year.
Example (l); A taxpayer in his return for 1935 claimed and was allowed
a deduction for destruction of timber by a forest fire. Subsequently it was
discovered that the forest fire occurred in 1936 rather than in 1935. After
the expiration of the period of limitations for the assessment of a deficiency
for 1935, the taxpayer files a claim for refund for 1936 based upon a deduc­
tion for the fire loss in that year. The Commissioner allows the claim for
refund. An adjustment is authorized with respect to the year 1935*
Example (2): The beneficiary of a testamentary trust in his return for
1933 claimed, and was allowed, a deduction for depreciation of the trust prop­
erty. The Commissioner asserted a deficiency against the beneficiary for 1933
with respect to a different item and final decision of the Board of Tax Ap­
peals was""rendered in 1935, so that the Commissioner was thereafter barred by
section 272 (f) of the Revenue Act of 1932 from asserting a further deficiency
against the beneficiary for 1933* The trustee thereafter filed a timely re­
fund claim contending that under the terms of the will the trust, and not the
beneficiary, was entitled to the allowance for depreciation. The court in
1939 sustains the refund claim. An adjustment is authorized with respect to
the beneficiary* s tax for 1933*
Art, 820 (b)~3. Erroneous exclusion of item of gross income with respect
to which tax was paid.— Section 820 (b) (3) applies if the determination requires the exclusion, from a taxpayer* s gross income, of an item with respect
to which tax was paid and which was erroneously excluded or omitted from the
gross income of the same taxpayer for another taxable year or of a related tax­
payer for the same or another taxable year.
Example (l); A taxpayer received payments in 1936 under a contract for
the performance of services and included the payments in his return for that
year. A closing agreement was thereafter made with respect to the tax lia­
bility of the taxpayer for 1935, The taxpayer subsequently filed a claim for
refund for the year 1936, asserting that he kept his books on the accrual basis
&ad that, as the payments had accrued in 1935, they were properly taxable in
that year. The claim for refund is allowed in 1939. An adjustment is author*»
ised with respect to the year 1935. If the taxpayer had not included the pay­
ments in any return and the Commissioner had asserted a deficiency for 1936
with respect to the payments, and the deficiency is not sustained by the Board
0 Tax: Appeals in its final decision in 1940, no adjustment is authorized with
respect to tho year 1935. Although the determination requires the exclusion
tv'wl ^*3? ^rom gi*oss income, no tax had been paid with respect thereto. If
© taxpayer, however, had paid the deficiency and thereafter successfully
contested it before the Board or successfully sued for refund in court, an ad­
justment is authorized.
(over)

(T.,D, 4856)

-

12—

Example (2): A father and son conducted a partnership business, each
being entitled to one-half of the net profits. The father included the
entire net income of the partnership in his return for 1933 and the son in­
cluded no- portion of this income in his return for that year. Shortly before
the expiration of the period of limitations with respect to.deficiency assess­
ments and refund claims for both father and son for 1933, the father filed a
claim for refund of that portion of his 1933 tax attributable to the half of
the partnership income which should have been included in the son* s return*
The court sustains the claim for refund in 1940* An adjustment is authorized
with respect to the son1s tax for 1933*
Art. 820 (b)-4. Correlative deductiop-s and inclusions specified in sec­
tion 162 (b) and (c), Revenue Act of 1958» and corresponding provisions of
prior Revenue Acts.— (n) Section 820 .{bM-^applies dT the determination re­
lates to the additional deduction specified in section 162 (b) and (c) of the
Revenue Act of 1938, or the corresponding provisions of a prior Revenue Act,
for amounts distributable to the beneficiaries, heirs, or legatees of an
estate or trust, and such determination requires:
(1) The allowance to the estate or trust of such additional deduction
when such amounts have been erroneously omitted or excluded from the income
of the beneficiaries, heirs or legatees;
(2) The inclusion of such amounts in the income of the beneficiaries,
heirs, or legatees when such additional deduction has been erroneously dis­
allowed to or omitted by the estate or trust;
(3) The disallowance to an estate or trust of such additional deduction
when such amounts have been erroneously included in the income of the benefi­
ciaries, heirs, or legatees; or

(4)
The exclusion of such amounts from the income of the b e n e f i c i a r i e s ,
heirs, or legatees when such additional deduction has been erroneously allowe|
to the estate or trust*
The provisions of (a) (1) of this article may be illustrated as follows!
Example: Eor the taxable year 1935, a trustee, directed by the trust
instrument to accumulate the trust income, made no distribution to the bene­
ficiary and returned the entire net income as taxable to the trust* Accord­
ingly, the beneficiary did not include the trust income in his return for
the year 1935* In 1937 a State, court held invalid the clause directing ac­
cumulation. In 1939 the trustee, relying upon the court decision, fileS a
claim for refund of the tax paid on behalf of the trust for the year 1935»
The claim is sustained by the court in 1941, after the expiration of the
period of limitations upon deficiency assessments against the b e n e f i c i a r y
for the year 1935. An adjustment is authorized with respect to the benefi­
ciary1s tax for the year 1935.

(T, D. 4856)

-13.

The provisions of (a) (2) of this article may "be illustrated as follows?
Example? Assume the same facts as in the example under (a) (l) except
that, instead of the trustee*s filing a refund claim, the Commissioner rely­
ing upon the decision of the State court,, asserts a deficiency against the
beneficiary for 1935. The deficiency is sustained hy final decision of the
Hoard of Tax Appeals in 1941, after the expiration of the period for filing
claim for refund on “behalf of the trust for 1935. An adjustment is author­
ized with respect to the trust for the year 1935*
The provisions of (a) (3) of this article may “be illustrated as follows?
Example: A trustee claimed in the return for 1935 a deduction for in­
come distributed to the “beneficiary. The income was included by the benefi­
ciary in his return for 1935. In 1939 the Commissioner asserts a deficiency
against the trust on the ground that the amount distributed to the benefi­
ciary represented a charge against the corpus of the trust and *did not consti­
tute a distribution of income* The deficiency is sustained by final decision
I of the Board of Tax Appeals in 1941, after the expiration of the period for .
filing claims for refund by the beneficiary for 1935. An adjustment is author­
ized with respect to the beneficiary*s tax for the year 1935*
The provisions of ('at) (4) of this article may be illustrated as follows?
Example? Assume the same facts as in the example under (a) (3), except
[that, instead of the Commissioners asserting a deficiency, the beneficiary
files a refund claim for 1935 on the same ground* The claim is sustained by
the court in 1941, after the expiration of the period of limitations upon
deficiency assessments against the trust for 1935* An adjustment .is author­
ized with respect to the trust for the year 1935*

(over)

(T. D. 4856)

*“*14**

Art. 820 (b) - 5. Determination of basis of property in case of
erroneous treatment of transaction relating to acquisition thereof.-»-Section
820 (Id) (5) applies if the determination establishes the basis of property
for income tax purposes and in respect of the transaction upon which such
basis depends there w,as an erroneous inclusion in or omission from gross
income or an erroneous recognition or nonrecognition of gain or loss with
respect to (l) the taxpayer with respect to whom the determination is made,
or (2) any person who acquired title to such property in such transaction
and the taxpayer with respect to whom the determination is made mediately or
immediately derived title from such person subsequent to such transaction.
Subsection 820 (b) (5) applies with respect to the person who acquired the
property and any subsequent transferees or donees who have a substituted
basis ascertained by reference to the basis in the hands of such person.
No adjustment is authorized with respect to the transferor of *the property
in the transaction upon which the basis of- the property depends, when the.
determination is with respect to (l) the original transferee, or (2) a sub­
sequent transferee of such original transferee.
Example (l);
In 1933 taxpayer A transferred property which had cost
him $5,000 to the X Corporation in exchange for an original, issue of shares
of its stock having a fair market value of $10,000. In his return for 1933
taxpayer A treated thé exchange as one in which gain or loss was not recog­
nizable î
(a) In 1938 the X Corporation claims that gain should have
been recognized on the exchange in 1933 and therefore thé property
it received had a $10,000 basis for depreciation. Its contention
is confirmed by a closing agreement. No adjustment is authorized
with respect to the tax of the X Corporation for 1933, as there was
no nerroneous inclusion in or omission from thé gross income of, or
an erroneous recognition .or nonrecognition of gain or loss to" the
X Corporation with respect to the exchange in 1933. Moreover no ad­
justment is authorized with respect to taxpayer A, as he is not the
taxpayer with respect to whom the determination is made, nor does the
deternination relate to the property which taxpayer A acquired in the
exchange in 1933, but, rather, to the property ?/hich he transferred
in such exchange.
(b) In 1939 the X Corporation transfers the property to the Y
Corporation in a tax-free exchange. In 1940 the Y Corporation sells
the property and computes its profit on the basis of $10,000, which
basis is sustained by the Board of Tax Appeals. No adjustment is
authorized with respect to the Y Corporation or with respect to tax­
payer A, for the reason stated in (a).
(c) In 1941 taxpayer A sells the stock which he had received in
1933 and claims that, as gain should have been recognized on the oxchange in 1933, the basis for computing the profit on the sale is
$10,000. His contention is confirmed in a, closing agreement. An ad­
justment is authorized with respect to his tax for the year 1 9 3 3 , as
the basis for computing gain op. the sale depends upon the transaction
in 1933 a,nd in respect of that transaction there was an erroneous nonrocognition of gain to taxpayer A, ”the taxpayer” with respect to whom
the determination is made.

fflte 4856")

-15-;;;

(d)
Taxpayei* A does not •sell the stock "but makes a gift of it
•to;taxpayer B, who later sells the .stock and claims the $10,000 "basis,
which contention, is confirmed in a closing agreement. An adjustment
is authorized with respect to the tax of:taxpayer A for 1933, as the
"basis for computing gain on the-sale by taxpayer B depends upon the
transaction in 1933 and in respect of that transaction there was erro­
neous nonrecognition of gain to taxpayer A, the "person who acquired
title to such property in such transaction and from whom * * * imme­
diately" taxpayer B, with respect to whom the determination is made,
"derived title subsequent to such transaction".
Example (a); In 1934 taxpayer A sold property acquired at a cost of $5,000
to taxpayer B for $10,000. In his return for 1934 taxpayer A failed to include
the profit on such sale. In 1939 taxpayer B sells the property for $12,000 and
in his return for 1939 reports a gain.of $2,000 upon the sale, which is con­
firmed in a'closing agreement. Eb adjustment is authorized with respect to the
tax of taxpayer A for 1934, as taxpayer A is not the taxpayer with respect to
whom the determination is made» nor does, the determination relate to property
which taxpayer A acquired in the transaction in 1934, but rather to property
which he transferred in such transaction.
Example (3); In 1933 a taxpayer received as additional compensation shares
of stock in a corporation but did not include any amount in his return for that
year on account of the receipt òf such stock. In 1938, after the expiration of
the period of limitations on deficiency assessments for 1933, he sells the stock
for $15,000 and reports $5,000 in his return for 1938 as profit on the sale.
A deficiency is asserted by the Commissioner on the theory that the basis is
zero and the recognized gain is $15,000. The Board of Tax Appeals sustains the
taxpayer* s contention that the transaction was erroneously treated in 1933 in
that the property then had a fair market value of $10,000. . An adjustment is
authorized with respect to the year 1933.
Example (4); In 1933 a taxpayer received 100 shares of stock of the X
Corporation having a fair market value of $5,000, in exchange for shares of stock
in the Y Corporation which he had acquired at a cost of $12,000. In his return
or 1933 the taxpayer treated the exchange as one in which gain or loss was not
recognizable* The taxpayer.sold 50 shares of the X Corporation stock in 1934
and in his return for that year treated such shares as having a $6,000 basis,
n 1938 the taxpayer sells the remaining 50 shares of stock of the X Corporation
or $7,500 and reports $1,500 gain in his return for 1938. After the expiration
o the peri.od of limitations on deficiency 'assessments and on refund claims for
33 and 1934,. the Commissioner asserts a deficiency for 1938 on the ground that
.e loss realized on the exchange in 1933 was erroneously treated as nonrecogsizable, and that the basis for computing gain upon the sale in 1938 is $2,500,
resulting in a gain of $5,000. The deficiency is sustained by the Board of Tax
^ppeals in 1943. An adjustment is authorized with respect to the year 1933 as
?.. e erL"tire $7,000 loss realized on the exchange. Eo adjustment is authorized
th ^ GSPGC^
^Cie year 1934 as the basis for computing gain upon the sale of
e 50 shares in 1938 does not depend upon the transaction in 1934.
wh
(k) ** 6. Law applicable in determination of error.— The question
all er-^ere was an erro'e.nous inclusion, exclusion, 'omission, allowance, dis-.
otan.ee, recognition,' or nonrecognition is:determined under the provisions of
(over)

(T, D. 4856)

-16*

the internal revenue laws applicable with respect to the year as to which the
inclusion, exclusion, omission, allowance, disallowance, recognition, or nonrecognition, as the case may he, was made. The fact that the inclusion, ex­
clusion, omission, allowance, disallowance, recognition, or nonrecognition, as
the case may he, was in pursuance of an interpretation, either judicial or
administrative, accorded such provisions of the internal revenue laws at the
time of such action is not necessarily determinative of this question- For
example, if a later judicial decision authoritatively alters siich interpretation
so that such action was contrary to such provisions of the internal revenue laws
as later interpreted, the inclusion, exclusion, omission, allowance, disallow­
ance, recognition, or nonrecognition, as the casé may he, is erroneous within
the meaning of section 820.
Art. 820 (b) - 7. Operation dependent upon maintenance of inconsistent
position.--»(a) Adjustments resulting in additional assessments.— An adjustment
which would result in an additional assessment is authorized only if (1) the
taxpayer, with respect to whom the determination is made, has, in connection
therewith, maintained a position which is inconsistent with the erroneous inclusion
exclusion, omission, allowan.ee, disallowance, recognition, or nonrecognition, as
the case may ho, and (2) such inconsistent position is adopted in the
det ermination.
Example; A taxpayer in his return for 1935 claimed and was allowed a
deduction for a loss arising from a casualty. After the taxpaj^er had filed
his return for 1936 and after the period of limitations upon the assessment of
a deficiency for 1935 had expired, it was discovered that the loss actually oc­
curred in 1936. The taxpayer, therefore, filed a claim for refund for the year
1936 based upon the allowance of a deduction for the loss in that year, and the
claim was allowed by the Commissioner, ^he taxpayer thus has maintained a posi­
tion inconsistent with the allowance of the deduction for 1935 by filing a claim
for refund for 1936 based upon the same deduction. As the determination'— the
allowance by the Commissioner of the claim for refund— adopts such inconsistent
position, an adjustment is authorized for the year 1935.
An adjustment which would result in an additional assessment is not author­
ized if the Commissioner, and not the taxpayer, has maintained such in c o n s is t e n t
position.
Example; In the first example under this article, assume that the tax­
payer did not file a claim for refund for 1936 but tho Commissioner issued a
notice of deficiency for 1936 based upon other items. The taxpayer filed a
petition with the Board of Tax Appeals and the Commissioner in his answer vol­
untarily proposed the allowance of a deduction for the loss previously allow ed
for 1935. The Board took the deduction into account in its redetermination of
the tax for the year 1936. In such case no adjustment would be authorized for
the year 1935 as the Commissioner, and not the taxpayer, has maintained a posi­
tion inconsistent with the allowance of a deduction for the loss in that year.
(b) Adjustments resulting in refund or credit.— An adjustment which woul j
result in the allowance of a refund or credit is authorized only if (l) ^he
Commissioner, in connection with a determination, has maintained a position
\
which is inconsi&ie&t with the erroneous inclusion, exclusion, omission, alle^f110]
disallowance, recognition, or nonrecognition, as the case may be, and (2) sueinconsistent position is adopted in the determination.

(T. D. 4856)

'

-IV-

-Examples A taxpayer who keeps his "books on the cash basis erroneously
included in his return for 1936 an item of accrued interest* After the period
of limitations on refunds for 1936.had expired., the Commissioner asserted a
deficiency for the year 1937 on the ground that the item of interest was re­
ceived in 1937, and, therefore, was properly includible in gross income for
that year. The taxpayer appealed to the Board of Tax Appeals, which sustained
the deficiency. By asserting a deficiency for 1937 based upon the inclusion
of the interest item in that year, the Commissioner has maintained a position
inconsistent with the inclusion of the interest item in 1936. As the determi**'
nation--the decision of the Board of Tax Appeals sustaining the deficiencyadopted such inconsistent position, an adjustment is authorized for the year
1936.
An adjustment which would result in the allowance of a refund or credit
is not- authorized if the taxpayer with respect to whom the determination is
made, and not the.Commissioner, has maintained such inconsistent position.
Example; In the first example under (b) of this article assume that the
Commissioner assorted a deficiency for 1937 based upon other items for that
year, but in computing the net income upon which such deficiency was based did
not include the item of interest. The taxpayer appealed to the Board of Tax
Appeals end in his petition asserted that the interest item should he included
in gross income for 1937. The Board included the item of interest in its re­
determination of the tax for the year 1937. In such case no adjustment would
"be authorized for 1936 as,«the taxpayer, and not the Commissioner, has maintained
a position inconsistent with the erroneous inclusion of the item of interest in
the gross income of the taxpayer for that year.
Art. 820 (b)-8. Existence of status of related taxpayer at time of the
first maintenance, of an inconsistent position.— ITo adjustment bjr way of a, defi­
ciency assessment shall be made with respect to a related taxpayer unless the
relationship existed both in the taxable year with respect to which the error
was made and at the time the taxpayer with respect to whom the determination is
made first maintained, in the manner described in this article, the inconsistent
Position with respect to the taxable yea.r to which the determination, relates. ^
If the inconsistent position is maintained in a return, claim for refund,
°r petition (or amended petition) to the Board of Tax Appeals, for tho taxable
year in respect of which the determination is made, the requisite relationsihip
must exist gu the date of. filing such document. If the inconsistent position
fs maintained in more than one of such documents, the requisite date is the
of filing of the document in which it was first maintained. .If the incon­
sistent position was not thus maintained then the relationship must exist on
ke date of the determination, as, for example, where at the instance of the
taxpayer a deduction is allowed, the right to which was vnoti asserted in a
return, claim for refund, or petition to the Board, and a determination is
9 ^ec"ted by moans of a closing agreement.

(over)

48-

(T. D. 4856)

¿Section 820 (c) of the Revenue Act of 1938^/
¿"SEC. 820.

MITIGATION OE EFFECT OF LIMITATION
AND OTHER PROVISIONS IN INCOME
TAX CASESJ

"(c) Method of Adjustment.— The adjustment authorized in sub­
section (b) shall be made by assessing and collecting, or refunding
or crediting, the amount thereof, to be ascertained as provided in
subsection (d), in the same manner as if it were a deficiency
determined by the Commissioner with respect to the taxpayer as to
whom the error was made or an overpayment claimed by such taxpayer,
as the case may be, for the taxable year with respect to which the
error was made, and as if on the date of the determination speci­
fied in subsection (b) one year remained before the expiration of
the periods of limitation upon assessment or filing claim for
refund for such taxable year."
Art. 820 (c) — 1. Method of adjustment.--If the amount of the adjustment
ascertained prusuant to section 820 (d) represents an increase in tax it is to
be treated a,s if it were a, deficiency determined by the Commissioner with
respect to the taxpayer as to whom the error v/as made and for the taxable year
v/ith respect to v/hich the error was made. The amount of the adjustment is thus
to be assessed and collected under the law and regulations applicable to the
assessment and collection of deficiencies, subject, however, to the limitations
imposed by section 820 (e). Notice of deficiency, unless v/aived, must be is­
sued with respect to such amount and the taxpayer may contest the deficiency
before the Board of Tax Appeals or, if he chooses, may pay the deficiency and
later file cla,im for refund. If the amount of the adjustment ascertained pur­
suant to section 820 (d) represents a decrease in tax, it is to be treated as
if it were an overpayment claimed by the taxpayer with respect to v/hom the
error v/as made for the taxable year v/ith respect to which the error was made.
Such amount may be recovered under the law and regulations applicable to over­
payments of tax, subject, however, to the limitations imposed by section 820 (e)*
The taxpayer must file a claim for refund thereof, unless the overpayment is
refunded without such claim, and if the claim is denied or not acted upon by
the Commissioner within the prescribed time, the taxpayer may then file suit
for refund, ^he amount of the adjustment treated as if it were a deficiency
or an overpayment, as the case may be, will bear interest and bo subject to
addition« to the tax to the extent provided by the internal revenue laws appl1"
cable to deficiencies and overpayments for the taxable year with respect to
which the error v/as made.
For the purpose of the adjustment authorized by section 820, the p e r io d o
limitation upon the making of an assessment or upon refund or credit for the
taxable year with respect to which the error was made, as the case may be,shall
be considered as if, on the date of the determination, one year remained before
expiration of such period, regardless of v/hether or not such period had expire
prior to the date of the determination. The Commissioner thus has one year.f*0111
the date of the determination within which to mail a notice of deficiency iu
respect of the amount of the adjustment where such amount is treated as if |
were a deficiency* The issuance of such notice of deficiency, in accordance
the law and regulations applicable to the assessment of deficiencies, will sU>b J
pend the running of the one-year period of limitations provided by section 82

-19(T* D* 4856)
In accordance with the applicable law and regulations governing the collection
of deficiencies (see section 276 (c) of this Act and the corresponding provisions
of prior Revenue Acts), the period of limitation for collection of the amount of
the adjustment will commence to run from the date of assessment of such amount*
Similarly, the taxpayer has a period of one year from the date of the determi­
nation within which to file a claim for refund in respect of the amount of the
adjustment where such adjustment is treated as if it were an overpayment. Inhere
the amount of the adjustment is treated as if it were a deficiency and the tax­
payer chooses to pay such deficiency and .contest it "by way of claim for refund,
the period of limitation upon filing claim for refund will commence to run from
the date of such payment (see section 322 (b) of the Revenue Act of 1938 and the
corresponding provisions of prior Revenue Acts).
/Section 820 .(d) of the Revenue Act of 1938J
/""SEC. 820.

MITIGATION OE EFFECT OF LIMITATION AND _
OTHER PROVISIONS IN INCOME TAX CASESJ

11(d) Ascertainment of Amount of Adjustment.— In computing the amount
of an adjustment under this section there shall first be ascertained the
tax previously determined for the taxable year with respect to which the
error was made. The amount of the tax previously determined shall be (l)
the tax shown by the taxpayer, with respect to whom the error was made,
upon his return for such taxable year, increased by the amounts previously
assessed (or collected without assessment) a,s deficiencies, and decreased
by the amounts previously abated, credited, refunded, or otherwise repaid
in respect of such tax; or (2) if no amount was shown as the tax by such
taxpayer upon his return, or if no return was made ~hy such taxpayer, then
the amounts previously assessed (or collected v/itheut assessment) as de­
ficiencies, but such amounts previously assessed, or collected without
assessment, shall be decreased by the amounts previously abated, credited,
refunded, or otherwise repaid in respect of such ta-x. There shall then be '
ascertained the increase or decrease in the tax previously determined
which results solely from the correct exclusion, inclusion, allowance,
disallowance, recognition, or nonrecognition, of the item, inclusion,
deduction, credit, gain, or loss, which was the subject of the error. The
amount so ascertained (together with any amounts wrongfully collected, as
additions to the tax or interest, as a, result of such error) shall be the
amount of the adjustment under this section."
Art. 820 (d) - 1« Ascertainment of amount of adjustment .— The amount of
e adjustment shall be ascertained as follows:
was

^aX Prevaous-*-y determined for the taxpayer as to whom the error
^°r
^axa"k^-e year with respect to which the error was made, must
retu 6 ascfroaaned. This may be the amount of tax shown on the taxpayer1s
account
^ an^" c^lanSes an that amount have been made they must be taken into
the t
In.such- cases
tax previously determined will be the tax shown on
assess
increased by any amounts previously assessed (or collected without
—
.men / as deficiencies* and decreased by any amounts previously abated,
^edited, refunded or otherwise repaid in respect of such tax. If no amount was
shown, eq fV, +
~
------ — w
™ J-J-w
v(l
^-etermi a ° JEy uPon
return, or if no return was made, the tax previously
^Hhout*16
"k°
SUm
a®oun^s previously assessed, or collected
aS ^-e;^ caencaes* decreased by any amounts previously abated,
a* or otherwise repaid in respect of such tax.
(over)

(T. D. 4856)

-201

The tax previously determined may consist of tax for any taxable year
beginning after December 31, 1931, imposed by Title I, Title IA, section 602
of Title III, of the Revenue Act of 1938, by the corresponding provisions of
prior,Revenue Acts, by Title III of the Revenue Act of 1936, or by any one
or more of such provisions.
(2) After the tax previously determined has been ascertained a recom­
putation must then be made to ascertain the increase or decrease in tax, if
any, resulting from the correction of the error. The difference between the
tax previously determined and the tax as recomputed after correction of the
error will be the amount of the adjustment.
With the exception of the items upon which the tax previously determined
was based and the item' or items with respect to which the error was made, no
other item shall be considered in computing the amount of the adjustment. If
the treatment of any item upon which the tax previously determined was based,
or if the application of any provisions of the internal revenue laws with
respect to such tax, depends upon the amount of income (e.g., charitable con­
tributions, foreign tax credit, earned income credit), readjustment in these
particulars will be necessary as part of the recomputation in conformity with
the change in the amount of the income which results from the correct treatment
of the item or items in respect of which the error was made.-Any interest or additions to the tax collected as a result of the error
shall be taken into account in determining the amount of the adjustment.
Example: For the taxable year 1936 a married man with no dependents,
who kept his books on the cash receipts and disbursements basis, -filed a
return disclosing gro-ss income of $42,000, deductions amounting to $12,000,
and a' net income of $30,000. Included among other items in the gross income
were salary in the amount of $15,000 and rents accrued but not yet paid in
the amount’of $5,000. During the taxable year he donated $10,000 to the
American Red Cross and in his return claimed a deduction of $5,294.12 on ac­
count thereof, representing the maximum deduction allowable under the 15
percent limitation imposed by section 23 (o) , Revenue Act of 1936. In com­
puting his net income he omitted interest income amounting to $6,000 and
neglected to take- a deduction for interest paid in the amount of $4,500. ®-e
return disclosed a tax liability of $3,565-, which was assessed and paid.
After the expiration of the period of limitations upon the assessment of a
deficiency or the allowance of a refund for 1936, the Commissioner included
the item of rental income amounting to $5,000 in the taxpayer1s gross income
for the year 1937 and asserted a deficiency' for that year. As a result of a
final decision of the Board of Tax Appeals sustaining the deficiency for 193 j
an adjustment is authorized for the year 1935. The amount of the adjustmen
is computed as follow^:
Tax previously determined for 1936

¿¡303.565.00
,

Ret income for 1936 upon which tax
previously determined was based

$30,000.00

Less:

Rents erroneously included

5.000.00

(T. D. 4856)

-21-

Balance

$25,000.00

Adjustment for contributions
(Add 15 percent of $5,000)
Net income as adjusted

750.00
.

$25,750.00

Tax as recomputed

$ 2,646.50

Tax previously determined

5,565.00

Difference

$

918.50

Amount of adjustment to te
refunded or credited

$

918.50

In accordance with, the provisions of section 820 (d) , the recomputation to
determine the amount of the adjustment does not take into consideration the
item of $6,000 representing interest received, which was omitted from gross
income, or the item of $4,500 representing interest paid, for which no deduc­
tion was allowed*
^Section 820 (e) of the Revenue Act of 1938^7

J J SEC. 820.

MITIGATION OP EPPECT OP LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASES_.J

”(e) Adjustment Unaffected "by Other Items, Etc.— The amount to "be
assessed and collected in the same manner as a deficiency, or to be
refunded or credited in the same manner as an overpayment, under this
section, shall not be diminished by any credit or set-off based upon
any item, inclusion, deduction, credit, exemption, gain, or loss other
than the one which was*the subject of the error. Such amount, if paid,
shall not be recovered by a claim or suit for refund or suit for erro­
neous refund based upon any item, inclusion, deduction, credit, exemption, gain, or loss other than the one which was the subject of the error.”
Art. 820 (e) - 1. Effect of other items on amount of adjustment.— The
Amount of the adjustment ascertained under section 820 (d) shall "not "be di­
minished by any credit or set-off based upon any item, inclusion, deduction,
credit, exemption, or gain or loss with respect to the year as to which the
®nror was made.
Example (l): In the example set forth in article 820 (d), if, after the
amount of the adjustment has been ascertained, the taxpayer filed a refund claim
amount thereof, the Commissioner could not diminish the amount of that
C aim by offsetting against it the amount of tax which should have been paid
IQ'*« re^Eec^
"the $6,000 interest item omitted from gross income for the year
» nor.could the court, if suit were brought on such claim for refund, off-,
against the amount of the adjustment the amount of tax which should have
eQn Paid with respect to such interest.
(over)

(T. D. 4856)

-

22 -

Example (2): Assume that a taxpayer included in his gross income for the
year 1936 an item which should have "been included in gross income for the year
1935. After expiration of the period of limitations upon the assessment of a
deficiency or the allowance of a refund for 1935, the taxpayer filed a claim
for refund for the year 1936 on the ground that such item was not properly
includible in gross income for that year. The claim for refund was allowed by
the Commissioner, and as a result of such determination an adjustment was author­
ized under section 820 with respect to the tax
for 1935. If, in such case, the
Commissioner issued a notice of deficiency for
the amount of the adjustment and
the taxpayer contested the deficiency before the Board of Tax Appeals, the tax­
payer could not in such proceeding claim an offset based upon his failure to
take an allowable deduction for the year 1935; nor could the Board of Tax Appeals
in its decision offset against the amount of the adjustment any overpayment for
the year 1935 resulting from the failure to take such deduction.
If the Commissioner has refunded the amount of an adjustment under section
820, the amount so refunded may not subsequently be recovered by the Commissioner
in ,a suit for erroneous refund based upon any item, inclusion, deduction, credit,
exemption, gain, or loss (other than the one which was the subject of the error)
with respect to the year as to which the error
was made.
Example (3): In the example set forth in article 820 (d) , if the Commis­
sioner had refunded the amount of the adjustment, no part of the amount so
refunded could subsequently be recovered by the Commissioner by a suit for
erroneous refund based on the ground that there was no overpayment for 1936,
as the taxpayer had failed to include in gross income the $6,000 item of interest
received in that year.
If the Commissioner has assessed and collected the amount of an a d ju stm en t,
no part thereof may be recovered by the taxpayer in any suit for refund based
upon any item, inclusion, deduction, credit, exemption, gain or loss (other
than the one which was the subject of the error) with respect to the year as to
which the error was made.
Example (4): In example (2) in this article, if the taxpayer had paid the
amount of the adjustment, he could not subsequently recover any part of such
payment in a suit for refund based upon his failure to take an alloy/able
deduction for the year 1935.
If the amount of the adjustment is considered as an overpayment, it may
be credited, under the applicable law and regulations thereunder, against any
income or excess-profits tax, or installment thereof, due from the taxpayer.
Likewise, if the amount of the adjustment is considered as a deficiency, any
overpayment by the taxpayer of income or excess-profits tax may be credited
against the amount of such adjustment in accordance with the applicable law and
regulations thereunder. (See section 322 of the Revenue Act of 1938 and co rre­
sponding provisions of prior Revenue Acts.) Accordingly, it may be possible
in one transaction between the Commissioner and the taxpayer to settle the tax
payer’s tax liability for the year with respect to which the determination is
made and to make the adjustment under section 820 for the year with respect to
which the error was made.

>23-

(T, D. 4856)

/Section 820 (f) of the Revenue Act of 1938^7
/«SEC. 820.

MITIGATION OF EFFECT OF LIMITATION AND OTHER PROVISIONS
IN INCOME TAX CASES./

n(f) No Adjustment for Years Prior to 1932.— *No adjustment shall
"be made under this section in respect of any taxable year beginning
prior to January 1, 1932.n
Art. 820 (f)-l. No adjustment for years prior to 1932.— '
Where the year
with respect to -which the error was made is a taxable year beginning prior to
January 1, 1932, no adjustment is authorized under section 820.

MILTON E. CARTER,
Acting Commissioner of Internal Revenue.

Approved:

August 23, 1938,

ROSWELL MAGILL,
Acting Secretary of the Treasury.

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
August 29, 1958_____ , 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

August 31, 1988_______

m

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,

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

No loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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

FOR RELEASE, MOR1TIUG- PAPERS,
Friday, August 26, 1958.

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100,000,000, or thereabouts,

i&S
They will he 91 -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 Monday. August 29f 1958

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated August 51, 1958

and will

mature on November 50, 1938 , and on the maturity date the face amount
pz

will be 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,
ITo tender for an amount less than $1,000 will be considered*
Each tender‘must he in multiples of $1,000.

The price offered must "be

eoepreseed on the basis of 100, with not more than three decimal places,
e. g., 99.125.

Fractions must' hot he used.- ------ -

Tenders will be accepted, without'cash deposit from incorpor­
ated banks and trust companies and from responsible and r e c o g n i s e s
dealers in investment securities.

Tenders from others must he accom

panied by a deposit of 10 per cent of the face amount of Treasury b*

TREASURY DEPARTMENT

FOR RELEASE, MORNING- PAPERS,
Friday, August 26, 1938.

The Secretary of the Treasury gives'notice that tenders are invited for
Treasury hills to the amount of $100,000,000, 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 Federal Reserve Banks, or the branches thereof
up to two o'clock p.m., Eastern Standard time, on Monday, August 29, 1938.
Tenders will not he received at the Treasury Department, Washington.
The Treasury hills will he dated August 31, 1938, and will mature on
November 30, 1938, 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
tranches 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 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.

- 2 -

Immediately after the closing hour for receipt of tenders on August 29,
1938, 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
August 31, 1938, •
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.

(Attention is invited to

Treasury Decision 4550, ruling that Treasury bills are not excmot from the
Sift tax#)

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 pre­
scribe the terms of the Treasury bills and govern the conditions of their issue#
opies of the circular may bo obtained from any Federal Reserve Bank or branch
thereof#
— oOo—

The establishment of the Chicago Division of the Technical Staff
is in furtherance of a plan developed by Commissioner of Internal
Revenue Guy T. Helvering, at the instance of Secretary of the Treasury
Morgenthau, for a general decentralization of Federal tax administra­
tion, in order to provide greater convenience to taxpayers and to
expedite the closing of tax cases.
A field division of the Technical Staff was established on the
Pacific Coast on July 1, with exclusive and final authority over
Federal tax cases originating in the States of Washington, Oregon,
California, Idaho, Montana, Nevada, Utah, and Arizona, and the Terri­
tories of Alaska and Hawaii.

A division was also opened at New York

City on August 1, with jurisdiction over cases arising in the State
of New York.

It is expected that similar divisions, covering the

remaining sections of the country, will be established after January
1, 1939.

HNG/mff

"be given a hearing at either Chicago, Springfield, Milwaukee, or
Indianapolis, according to his residence, and the local office will
consider his contentions and make final determination of his tax
liability.

It will have full authority to review or reverse the

findings of the internal revenue agent in charge, and there will be
no appeal to any other agency or officer of the Treasury Department,
either locally or in Washington.

If a taxpayer is not satisfied

with the final-^termination of his case by the local office of the
Technical Staff, his only recourse will be an appeal to the Board
of Tax Appeals and the Courts.
The arrangement promises many advantages.

It will eliminate the

repetitious steps and protracted delays which it seems impossible to
avoid under the old plan of centralizing the settlement of tax dis­
putes in the Bureau of Internal Revenue at Washington.

It will permit

prompt action on all contested cases at a point near to the taxpayer
and to the sources of evidence regarding his transactions.

It will

provide an able and impartial administrative body to which the tax­
payer can have recourse in his own community should he wish to con­
test the findings of the agency which examined his tax return in the
first instance.

The plan is expected to result not only in greater

convenience to taxpayers but also in quicker administrative decisions
and in fewer appeals from the Bureau of Internal Revenue to the Board
of Tax Appeals and the Courts.

It will be of special benefit to tax­

payers who are financially unable to employ counsel.

Appeals, there being at the present time some 900 Illinois, Wisconsin,
and Indiana cases accumulated on the Board’s docket, involving many
millions of dollars of disputed tax.

The plan will be to set the

bulk of these accumulated cases for hearing before the Board at
Chicago, Springfield, Milwaukee, and Indianapolis, during the fall
and early winter, with a view to bringing the Board’s docket in
this area current by January 1, 1939.

The immediate function of the

new Staff Division will be to defend the Government’s interests in
the trial of these cases before the Board of Tax Appeals, and, when the
facts warrant, to negotiate settlements with the taxpayers without
trial before the Board.
On January 1, 1939, in addition to its function of representing
the Government in cases docketed before the Board of Tax Appeals,
the Chicago Division of the Technical Staff will have authority,
upon appeal by the taxpayer, to review the determination of tax
liability made in any case by the local internal revenue agents.
Under this arrangement, the examination of tax returns will be
made by the internal revenue agents, as at the present time.

Their

reports will be reviewed and discussed with taxpayers in the office
of the internal revenue agent in charge in accordance with the present
procedure.

But if the agent’s findings are finally protested by the

taxpayer, the case will no longer be sent to Washington for review
and conference in the Bureau of Internal Revenue, but will be referred
to the Chicago Division of the Technical Staff.

The taxpayer will

A division of the Technical Staff of the Office of the Commis
sioner of Internal Revenue will be established at Chicago on Sep­
tember 1.

Its principal offices will be located in the Board of

Trade Building, at 141 West Jackson Boulevard.

Branch offices will

be established at Springfield, 111#* Milwaukee, Wis., and Indianapolis,
Ind.

This agency will have final authority to settle, for the Com­

missioner of Internal Revenue, all contested Federal income- and
estate-tax cases arising in the States of Illinois, Wisconsin, and
Indiana.
The personnel of the Chicago Division of the Technical Staff is
being provided by transferring from the Bureau of Internal Revenue
at Washington a group of the most experienced and competent technicians
now on the Bureau’s rolls— attorneys, accountants, auditors, engineers,
valuation experts, and specialists in various lines of Federal tax
administration.^Including clerical employees, the total force will
number more than 50 persons.

The Division will be in charge of

Jesse F. Gregory, who, prior to this assignment, was a senior
technical adviser on the staff of the Commissioner of Internal Revenue,

and who has a record of more than 16 years in the Federal internal
revenue service.

Frederick R. Shearer, who for a number of years

has served as special assistant to the Chief Counsel of the Bureau
of Internal Revenue, will be in charge of the legal staff attached
to the new agency.
Until January 1, next, the Division will concern itself primarily
with cases which have been appealed to the United States Board of Tax

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Monday, August 29, 1938.
8/22/38.

Press Service
No. 14-39

A division of the Technical Staff of the Office of the Commissioner
of Internal Revenue will he established at Chicago on September 1.

Its

principal offices will be located in the Board of Trade Building, at
141 West Jackson Boulevard.

Branch offices will be established at

Springfield, 111., Milwaukee, Wis., and Indianapolis, Ind.

This agency

will have final authority to settle, for the Commissioner of Internal
Revenue, all contested Federal income- and estate-tax cases arising in
the States of Illinois, Wisconsin, r.nd Indiana.
The personnel of the Chicago Division of the Technical Staff is being
provided by transferring from the Bureau of Internal Revenue at W:
?.shington
a group of the most experienced and competent technicians now on the Bureau’s
rolls— attorneys, accountants, auditors, engineers, valuation experts, and
specialists in various lines of Federal tax administration.
Including clerical employees, the total force will number more than
50 persons.

The Division will be in charge of Jesse F. Gregory, who, prior

to this assignment, was a senior technical adviser on the staff of the
Commissioner of Internal Revenue, and who has a record of more than 16 years
ln

Federal internal revenue service.

Frederick R. Shearer, who for

9-number of years has served as special assistant to the Chief Counsel of
the Bureau of Internal Revenue, will be in charge of the legal staff attached
to the new agency.
ntil January 1, next, the Division will concern itself primarily with
c.ses which h ve been appealed to the United States Board of Tax Appends,

there "being at the present tine sene 900 Illinois, Wisconsin, and Indiana
cases accumulated on the Board’s docket, involving many millions of dollars
of disputed tax.

Tho plan will "be to set the "bulk of these accumulated crises

for hearing* "before the Board at Chicago, Springfield, Milwaukee, and Indieirooli
during the fall and early winter, with a view to bringing the Board’s docket
in this area current "by January 1, 1939,

The immediate function of the new

Staff Division will "be to defend the Government’s interests in the trial
of these cases before the Board of Tax Appeals, and, when the facts warrant,
to negotiate settlements with the taxpayers without trial before the Board»
On January 1, 1939, in audition to its function of representing the
Government in cases docketed before the Board of Tax Appeals, the Chicago
Division of the Technical Staff will have authority, upon appeal by tho
taxpayer, to review’ the determination of tax liability made in any case by
the local internal revenue agents*
Under this arrangement, the examinati®& of tax returns will be made by
the internal revenue agents, as at the present time*

Their reports will

be reviewed and discussed with taxpayers in the office of the internal
revenue agent in charge in accordance with the present procedure.

But if

the agent’s findings are finally protested by the taxpayer, the case will
no longer be sent to Washington for review and conference in the Bureau
of Internal Revenue, but will be referred to the Chicago Division of the
Technical Staff,

The taxpayer will be given a hearing a,t either Chicago,

pringfield, Milwaukee, or Indianapolis, according to his residence, and
be local office .will consider his contentions and make final determination
of his tax liability*

It will have full authority to review or reverse the

indings of the internal revenue agent in charge, and there will be no
aPpeal to any other agency or officer of the Treasury Department, either
ocally or in Washington.

If a taxpayer is not satisfied with the final

- 3 -

determination of his case by the local office of the Technical Staff, his
only recourse will he an appeal to' the Board of Tax Appeals and the Courts#
The arrangement promises many advantages.

It will eliminate the

repetitious steps and protracted delays which it seems impossible to avoid
under the old plan of centralizing the settlement of tax disputes in the
Bureau of Internal Revenue at Washington*

It will uermit prompt action on

all contested cases at a point near to the taxpayer and to the sources of
evidence regarding his transactions.

It will provide an able and impartial

administrative body to which the taxpayer can have recourse in his own
community should he wish to contest- the findings of the agency which examined
his tax return in the first instance.

The plan is expected to result not only

in greater convenience to taxpayers but also in quicker administrative de­
cisions and in fewer appeals from the Bureau of Internal Revenue to the
Boaro. of Taix Appeals and the Courts#

It will be of special benefit to tax­

payers who are financially uhable tc employ counsel#
The establishment of the Chicago Division of the Technical Staff is in
furtherance of a plan developed by Commissioner of Internal Revenue
Guy T. Helvcring, at the instance of Secretary of the Treasury Morgenthau,
for a general decentralization of Federal tax administration, in order to
Provide greater convenience to taxpayers and to expedite the closing of tax
cases.

A

A field division of the Technical Staff was established on the Pacific
,
asp on July 1, with exclusive and final authority ovor Federal tax cases

01>iginating in the States of Washington, Oregon, California, Idaho, Montana,
eVaaa’ UtpJa> g E Arizona, and the Territories of Alaska and Hawaii.

A

’sion was e.lso opened at Blew York City on August 1, with jurisdiction
Cc.ses arising in the State of Hew York.

It is expected that similar

fu sio n s, covering the rem aining s e c tio n s o f the cou n try, w ill be e s ta b lis h e d
E ter January 1 , 1939.
— oOo— »

-4It -was revealed, however, that the difference between illness rates
among unemployed and employed women workers is smaller than the
difference in rates between unemployed and employed men workers. On
the day of the visit 17 jobless women were disabled for every 10 em­
ployed women who were suffering from disability*

The ratio among men

was found to be 21 to 10*
The excess in prevalence of illness among the unemployed as
compared with the employed, while generally increasing from a lower
age group to a higher one, was found to be relatively greatest among
men and women workers who were 25 to 44 years of age*

In this par­

ticular age group the illness rate for men without jobs is almost
2j times as great as that for men with jobs. The corresponding rate
for women workers is almost as large.
The Survey found that illness wac more prevalent among the
/"i

<Sr

unemployed workers who are seeking work than tfeesserass. among those un­
employed workers who are on work relief.

The preliminary findings

show that the rate of illness among those seeking work is 43 per 1,000
as compared with 30 per 1,000 among the workers on work relief*
Among workers in nonrelief families the highest prevalence
of disabling illness on the day of the canvass was found to be in those
families with incomes of under $¡1,000 a year.
On the day of the canvass proportionately fewer employed men
in the professional classes were found to be disabled than was in the
case of any other occupational class* Only 10 employed professional
men are disabled for every 23 of the employed unskilled workers. Among
the unemployed, however, only one-third more unskilled workers than
professional workers are disabled* Of all unemployed workers the uns k i l l e d s e e k i n g work, experience the highest illness rate.

price for disability resulting from industrial, automobile and home
accidents and for those diseases which can be prevented or cured by
the prompt application of the best that modem science has to offer*”
The higher rate of illness among unemployed workers is all
the more distressing because that group of our population is least
able to stand the burden*

In speaking of the disease and disability

rates the reports stated, “whether these diseases are cause or effect
of being without a job, they tend to be concentrated among the unemployed
and among those in the laboring classes who are largely unable to obtain
the adequate care necessary to promote recovery or to arrest the inroads
of disease”•
These findings, contained in a bulletin issued by the U. S*
Public Health Service today entitled, Illness Among Employed and
Unemployed Workers, reveal that excess illness is the lot of jobless
workers whether young or old, men or women, professional or unskilled
workers* The findings are substantially the same for all of the cities
included in this preliminary report*
In general, the highest illness rates are found among people
in the high age groups, in the low income classes, and among the un­
skilled* •Common
colds, bronchitis
and influenza (the so-called
minor
-C -v'
. . • ■ ■.. v . ..■.* -■*- '■f .*■ I : 4 ...,\.-•
' --A ■- respiratory diseases) were responsible for one-third of all illnesses
experienced on the day of the canvass which was undertaken in the
winter of 1935-36. Two jobless workers were disabled on the day of the
call from these diseases for every employed worker so disabled* Nervous
and mental diseases disabled 17 jobless workers for every 2 employed
workers thus disabled*
The Survey found that women workers of all ages experience &
illness rate which is higher than that for men workers of all ages*

-

2_

ST. Cl,

/

P

f

in commenting upon "the findings^ stated "todays
wTwo serious questions arise from this study:

tl’) Are we adding to

our dependent population, as a result of the serious amount of ill­
ness among unemployed workers, a group of permanent unemployables
that will have to be supported by public funds no matter how good
business may be in the future? and (2) can the United States afford
this appalling amount of illness among both employed and unemployed
workers? Thn irtuift—

rfflP'fn ,

J ~ group

u m m iiiu Ii H

f U# T P lW ig * '

\jpf " the

total amount of sickness in the country which, according to the survey,
disables more than 4 million people on an average day»

Illness and

death in America represent an annual cost of 10 billion dollars when
all factors are considered.

This cost in lives and money can be

reduced. "Medical authorities agree that much of America’s illness
is preventable."
MThis study of illness among employed and unemployed workers
indicates not only that there is at least twice as much illness among
the unemployed as there is among the workers who have jobs but that
the rates among both groups are so high that they constitute a serious
m * . jPju v l c *t _ _ ..... _
economic and social problem? U*» ulilnP nf"
TWu.ii—
Sei’vi’p» declared.

"Some illnesses, of course, are inevitable, but

when we find that rates among the unemployed are twice as high as they
are among other groups it is apparent that controllable factors such
as medical care, hospitalization and improved housing would appreciably
cut the illness rate for a large part of our population.

If no action

is taken along this line we are faced with a mounting total^of unemploy'
ables who will constitute permanent public charges."

oc­

cluded by pointing out: "It is also evident that we are paying a

FOR REIXAEFfJMMHi UE8SPAPERS
•Monday, August 20, 1938
/"

If all

^6*Ktn&

unemployed workers in "the United Stages were

suddenly called back to work tomorrow morning, at least 350,000 of
them would be unable to report for duty because of illness, accord­
ing to estimates based upon findings of the Rational Health Survey
of the United States Public Health Service which were made public
today*
f,The 350,000 workers who would be unable to respond to the
long iSSSEftl «nd anxiously awaited call to come back to work include,
of course, some workers who were laid off because of illness , offi­
cials of the Survey stated.

"However, a study of the types of illness

showing excessive rates among the unemployed, such as nervous and mental
diseases and some sicknesses which can be traced to malnutrition and
poor housing, leads inescapably to the conviction that many persons are
ill because of unemployment."
The Rational Health Survey was instituted as an inventory of
^ n a t i o n ' s health.

It was carried out with the aid of financial

grants from the Works Progress Administration. Trained interviewers,
during the winter of 1935-36, called at the homes of nearly 3 million
people scattered throughout the country. Preliminary reports from
eight out of the 83 cities included in the survey show that there is
more than twice as much illness among unemployed as there is among the
employed workers of our nation*
The preliminary tabulations indicate that among white un­
employed workers 15 to 64 years of age the proportion disabled by il ness on the day of the canvass was 39.5 per 1,000 while the rate among
employed workers was 19.5 per 1,000.

TREASU RY

DEPARTM ENT

U. S. P U BLIC HEALTH SE R V IC E

MEMORANDUM
DATE

fro m :

Philip S. Broughton

to:

Mr. Charles Schwarz

August 26, 193S

Attached is a press release for papers of Monday morning,
August 29th. It has been approved by Mr. Perrott, Director of the
National Health Survey, and by Doctor Olesen. It comes rather late
and if in your opinion it would be preferable to postpone it for
a day or two let Bloch know immediately and he will inform Perrott
and the Detroit office.

PSBîAEM

In Cijarge, Office of
Health Education

TREASURY DEPARTMENT
U. 3* Public Health Service
Washington

FOR RELEASE, AETERNOON NEWSPAPERS,
Monday, August 29, 1958
8*“26—38 .

Press Service
Ho. 14-40

If all unemployed workers in the United States were suddenly called hack
to work tomorrow morning, at least 350,000 of them would he unahle to report for
duty because of illness, according to estimates based upon-findings of the
Rational Health Survey of the United States Public Health Service which were
made public today.
11 The 350,000 workers who would be unable to respond to the long and anxious­
ly awaited call to come back to work include, of course, some workers who were
laid off because of illness,” officials of the Survey stated.

’’However, a study

of the types of illness showing excessive rates among the unemployed, such as
nervous and mental diseases and some sicknesses which can be traced to malnutri­
tion and poor housing, leads inescapably to the conviction that many persons are
ill because of unemployment.”
The National Health Survey was instituted as an inventory of the nation1s
health.

It was carried out with the aid of financial grants from the Works

Progress Administration.

Trained interviewers, during the winter of 1935-36,

called at the homes of nearly 3 million i^eople scattered throughout the country.
Preliminary reports from eight out of the 83 cities included in the survey show
that there is more than tvd.ee as much illness among unemployed as there is among
the employed workers of our nation.
The preliminary tabulations indicate that among white unemployed workers
15 to 64 yeaj*s of age the proportion disabled by illness on the day of the canvass
was 39,5 per 1,000 while the rate among employed workers was 19.5 per 1,000.
George St. John perrott, Director of the Survey, in commenting upon the
findings, stated today:

’’Two serious questions arise from this study:

(l) Are

wo adding to our dependent population, as a result of the serious amount of ill—

** 2
ness among unemployed workers, a group of permanent unenploya'bles that will have
to "be supported by public funds no matter how good business may be in the future?
and (2) can the United States afford this appalling amount of illness among both
employed and unemployed workers?

This group has more than its proportionate share

of the total amount of sickness in the country which, according to the survey,
disables more than 4 million people on an average day.

Illness and dearth in

America represent an annual cost of 10 billion dollars when all factors are con­

sidered»

This cost in lives and money can be reduced.

Medical authorities agree

that much of «America* s illness is preventable,»
»This study of illness among employed and unemployed workers indicates not
only that there is at least twice as much illness among the unemployed as there
is among workers who have jobs but that the rates among both groups are so high
that they constitute a serious economic and social problem,»

Mr. Perrott declared,

"Some illnesses, of course, are inevitable, but when we find that rates among the
■unemployed are twice as high as they are among other groups it is apparent that
controllable factors such as medical care, hospitalization and improved housing
would appreciably cut the illness rate for a large part of our population.

If no

action is taken along this line we are faced with a mounting total of unemploy­
ables who will constitute permanent public charges.»
pointing out:

Mr. Perrott concluded by

"It is also evident that we are paying a high price for disability

^suiting from industrial, automobile and home accidents and for those diseases
which can be prevented or cured by the prompt application of the best that m o d e m
science has to offer.»
The higher rate of illness among unemployed workers is all the more distress-?
because that group of our population is least able to stand the burden.

In

speaking of the disease and disability rates the report stated, »whether these
iseases are cause or effect of being without a job they tend to be concentrated

§ he unemployed and among those in the laboring classes who are largely unable
°htain the adequate care necessary to promote recovery or to arrest the inroads

3
kf disease."
Ihese findings, contained in a ‘bulletin issued by the U. S. Public Health
(Service today entitled, Illness Among Employed and Unemployed Workers,reveal that
Ixcass illness is the lot of jobless workers whether young or old, men or women*
(professional or unskilled workers.

The findings are substantially the sane for
• ..... '
(ill of the cities included in this preliminary report.
In general, the highest illness rates are found among people in the high age
{roups, in the low income classes, and among the unskilled.

Common colds, bronchi­

tis and influenea (the so-called minor respiratory diseases) were responsible for
|ne-third of all illnesses experienced on the day of the canvass which was under—
aken in the winter of 1935-36.

Two jobless workers were disabled on the day of

¡he call from these diseases for every employed worker so disabled.

Nervous and

ental diseases disabled 17 jobless workers for every 2 employed workers thus dis—
[bled*
The Survey found that women workers of all ages experience an illness rate
hich is higher than that for men workers of all ages.

It was revealed, however,

,hat the difference between illness rates among unemployed and employed women
jOrkers is smaller than the difference in rates between unemployed and employed
workers.

On the day of the visit 17 jobless women were disabled for every

r Qnployed women who were suffering from disability.

The ratio among men was

[oimd to be 21 to 10.
The excess in prevalence of illness among the unemployed as compared with
p snployed, while generally increasing from a lower age group to a" higher one,
s found to be relatively greatest among men and women workers who were 25 to
H years of age.

In this particular age group the illness rate for men without

|°hs is almost 2-g- times as groat as that for men with jobs.

The corresponding

jate for women workers is almost as large.
^he Survey found that illness is more prevalent among the unemployed

workers

10 are seeking work than it is among those unemployed workers who are on work

If

~ 4 ~
relief.

The preliminary findings show that the rate of illness among those seeking

work is 43 per 1,000 as compared with 30 per 1,000 among the workers on work
relief.
Among workers in nonrelief families the highest prevalence of disabling
illness on the day of the canvass was found to be in those families with incomes
of under $1,000 a year.
On the day of the canvass proporticmtely fewer employed men in the pro**
fessional classes were found to be disabled than was in the case of any other
occupational class.

Only 10 employed professional men are disabled for every 23

of the employed unskilled, workers.

Among the unemployed, however, only one**third

more unskilled workers than professional workers are disabled.

Of all unemployed

workers the unskilled workers seeking work, experience the highest illness rate.

TRSAStJRT BIPAS9 0 8 9

msmsmm
m t m sássf M

i

m pa

» ,

Prese Servio«
I

Taaeday, Aqgaet 30. 1988»
8/89/39

lüi« Secretary of the Treasury announced Xaat evening that the
tendere for #X0090O0f0O0v or thereabout», of 9X«dajr Treasury bllXe» to be
dated Augast §X and to maturo Hovember 50* 1958, t M # «oro offered on
Augnst S$t voxo oponed at the federal 1§ s s i w banke on Aoguet S9.
The áetalXa of thle iesae ene aa fellows:
Total applied fon
Total aeeepted

* #851,198,000
- 100,504,000

tange of aeeepted bidés (Kxcepting ene bid of #50,000)
H igh

Lov
A verage p r i o e

* 99*990
• 99.989
* 99,968

l^ u iT a X e n t n a to ap p ro acim ately

*

*

•

»

•

*

0*040
0.051
0.049

pereeat

(XS percent of the amount bid fon at the Xev price was aeeepted)

•
*

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, August SO, 1938«
8/29/38

Press Service
No. 14-41

The Secretary of the Treasury announced last evening that the tenders
for $100,000,000, or thereabouts, of 91-day Treasury bills, to be dated August
31 and to mature November 30, 1938, which were offered on August 26, were
opened at the Federal Reserve banks on August 29.
The details of this issue are as follows!
Total applied for
Total accepted

- $251,175,000
~ 100,506,000

Range of accepted bids! (Excepting one bid of $50,000)
®-gh
Low
Average price

— 99*990 Equivalent rate approximately 0.040 percent
~ 99.987
n
t
.0.051
•
- 99.988
n
11
,f
0.047
«

(l5 percent of the amount bid for at the low price was accepted)

— oOo—

- 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 2, 1 9BR

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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

September 7 f 1958______ .
alalc)c
The Treasury bills will be exempt, as to principal and interest,

and any gain from the sale or other disposition thereof will also bo
exempt, from all taxation, except estate and inheritance taxes.

(Atten­

tion is invited to Treasury Decision 4 5 5 0 , ruling that Treasury bills are
not exempt from the gift tax.)

Ho lose from the sale or other d is p o s i t i o n

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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

FOR RELEASE, MORNING- PAPERS,
Wednesday, August 31, 1938.
Wc
xrrx xxxmnc

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100.000.000, or thereabouts

i%k
They will he 91 -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 , September 2 , 1988 .

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated September 7 f 1938 , and will
rocx
mature on December 7, 1958 , 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 Ranks or branches upon application therefor.
Do tender for an amount less than $1,COO will be considered.
he in multipi pi3 Of $1,,000.
basis
0# §>m9 w

The price

100, tTith noib more than three

Fract:ions must hot he V&8

cl«

■

_

_.......... ■

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 accon.
-i* liS

panied by a deposit of 10 per cen^b of the face amount of Treasury

TREASURY DEPARTMENT

FOR RELEASE, MORNING PAPERS,
Wednesday, August 31, 1938.

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 Friday, September.2, 1938*
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated September 7, 1938, and will mature on
December 7, 1938, and on the maturity dale the face amount will be payable with­
out interest*

They will be issued in bearer form only, and in amounts or denomi­

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
tranches upon application thorefor*
No tender for an amount less than $1,000 will be considered.
nust 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 nust 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 2,
1938, all tenders received at the Federal Reserve Banks or branches thereof up

- 2 -

to the closing hour will bo 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 September 7, 1938.
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.

(Attention is invited to Treasury

Decision 4550, ruling that Treasury bills are not exempt from the gift tax.)

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 pro**
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular nay be obtained from any Federal Reserve Bank or branch
thereof.
— oOo—

««*w»***'f& October, .

the rank uf

ly 1928, he was appointed Superintendent of the Coast Guard Academy at
iew London, Conn., at which institution the future commissioned officers

aaBBv* Gafi^ain Hamlet was appointed b; the President as Commandant of the
Coast Guard June 14, 1932, for $ term
rri r~" '‘"^i

Upon

office, when under the law he reverted to the rank of Capt^k, he was detailed to Special duty in the Office of the Secre|s*y of the Treasury, dur
ing whic]

te he performed additional

as Chairman, Personnel Adviso:

Committee, Commit%ee on Commer^ef l^ited States Senate, haring to do with mie
study of maritime probl^SS%<|nd recommending legislation to improve the Amer|can
Merchant Mariiie*
Ljg tta reached the statutory ll^of 64, Captain Hamlet was retired
[as of^ Sept ember 1, 1938, with the rank of Rea^Admiral, upper half, by reason|
of his having served as Commandant of the United^tates

Guard

in October, 1918, the United States Naval Forces at Brest, France, assuming
command of the U.S.S. MARIETTA..

While in command of this vessel, he rescued

on the morning of April 28, 1919, off the coast of France, the orow of two
officers and ^5 men from the U.S.S. JAMES, which was sinking in a heavy gale.

in savin.

on ftnarri.« T n recognition of his gallant conduct upon this

occasion, the Secretary of the Treasury awarded him the Congressional Gold
Life-Saving Medal of Honor, and he was the recipient of a Special Commendation
from the Secretary of the Navy entitling him to wear the Silver Star upon

M

his service ribbon.
In September, 1919»

myfr was assigned as Personnel Officer and in charge of Ship Opera­
tions, serving in such capacity until his detachment in May, 1922.

He then

assumed command of the Coast Guard Cutter MOJAVE at Honolulu^

When Congress in I92 U made provision for the acquisition of additional
vessels for the Coast Guard, he was ordered to the Philadelphia Navy Yard
and superintended the reconditioning, outfitting and commissioning of the
20 destroyers turned over to the Coast Guard from the Navy, and trained the
crews to go aboard these craft.

The Commandant commenced him for his except-

ional meritorious and efficient service i*«»1
an expenditure of over $2,^400,000 in repair funds.

involving
When these reconditioned

destroyers were placed in commission and organized into the Coast Guard Des­
troyer Force, he was placed in command of them in July, 1925«

2

iuartersT*

was appoiiitea

Admiral TÄlij 0* Hamlet

b o m at Eastport, Maine, on
August 27, 1874,

the son of Captain Oscar C» Hamlet of the

Revenue Cutter Service
He graduated from the Dorchester, Massachusetts High School, and attended
Massachusetts Institute of Technology, mas appoiiited a cadet from the State of

Ip U

0M

Massachusetts on April 12, 1894fcrfeceivJ»g his

e a r^

Service training and in-

struction on the practice ship CHASE*

8s* graduated high in his class and was
A
commissioned an ensign on April 27, 1896, his first assignment
aboard tne

historic cutter BEAR*

f

l ?

1900,

o

the Naval War Coll

Inland, for the WaV College Course, bitag one of the first officers of the
Coast Guard tmlm *assigned to this institution*

In 1901, he returned to

the Coast Guard to be assigned to the t a a M h a v t Cutter BEAR^eiiii from then

W

until the entrance of the United States into the World War, he served
aboard units of the^Service on both the East and West Coasts,

A la sk a n

and Arctic waters*
/ When the United States entered the World War, he was assigned to the
Third Naval District,

and organized the various activities and the

training of personnel at Naval Section Bases Six and Nine, subsequently joining

- 1 -

ae®h**,
?
*c8>|
fw

| Rear
Coass

Admiral

Harry

Guard^^S™^was appointed

G.

Hamlet«

Commandant

June 14« 1932 « for a pefgised of

By

four years

was

of the Halted

States

the President
retired

today

at

/

his present

rank« upper half«
j After

Coast

Guard April

distinction«

at the

appointment
12« 18$4«

age

as a

Admiral

of

cadet

sixty four.
in the United

Hamlet enjoyed a

States

career

of

¡to the rank of captain in October« 1926«
4
super intent of the United States Coast Guard Academy

he

was

named

at

Hew

London« Conn««

in

May« 1928« This institution

school for future commissioned

offioers of the

is the

service*

W
Upon completition
Admiral Hamlet

was

detailed

of his

Secretary of the Treasury« during
ogaurnab

to

improve

the

study

coBmandant

he peyfdrmed

Sommittee

additional duty &4

of the United^ senate«

of maritime problems and'^r^oinmendin^_legislat^

American Merchant Marine,
One of the thrill points

m H p

as an officer

to the

Arctic

on the

in 1897-98«

rescuing

the

famous

This

orews

event « in maritime circles« has
arduous

|j
as

duty in the officf ^dr the

which time

of the Personal ^Advisory

having to do with the

service

to special

training

and i o m M c perilous

Admiral

old

Coast

expedition
of four

Hamlet’s

in the

career

Guard Cutter

Bear«

was successful in

frozen-in whaling

gone down

rescues

(more) -o-

of

vessels« The

in history as one of the most
Far north.

REASURY DEPARTMENT

Washington
Press Service
Ho. 14-42

FOR -IMMEDIATE RELEASE,
Thursday, September 1, 1938.

Rear Admiral Harry G. Hamlet, of the United States Coast Guard, who was
appointed Commandant by the President June 14, 1932, for a. term of four years,
was retired today at his present rank, upper half, at the age of sixty-four.
After appointment as a. cfdet in the United States Coast Guard Aoril 12,
1894, Admiral Hamlet enjoyed a career of distinction.

Promoted to the rank

of captain in October, 1926, he was named superintendent of the United States
Coast Guard Academy at Hew London, Conn., in May, 1928.

This institution

is the training school for future commissioned officers of the Service.
Upon completion of his service as commandant, Admiral Hamlet was de­
tailed to special duty in the office of the Secretary of tho Treasury, during
which time he performed additional duty as Chairman of the Personnel Advisory
Committee, Committee on Commerce of the United States Senate, having to do
with the study cf maritime problems and recommending legislation to improve
the American Merchant Marine.
One of tho thrill points of Admiral Hamlet’s career as an officer on
the famous old Coast Guard Cutter
Arctic in 1897~98.

BEAR,' * was a relief expedition to the

This expedition was successful in rescuing the crows

of four frozen-in whaling vessels.

The event, in maritime circles, has gone

¿own in history as one of the most arduous and perilous rescues in the Ear
North.
Admired Hamlet wo,s born a.t Ee.stport, Maine, on August 27, 1874, the
son of Captain Oscar C. Hamlet of the old Revenue Cutter Service.
He graduated from the Dorchester, Massachusetts High School, and attended
Massachusetts Institute of Technology, having beon appointed a cadet from

-

2

-

tho State of Massachusetts on April 12» 1894.

He received his early service

training and instruction on the practico ship CHASE.

Admiral Hamlet graduated

high in his class and was commissioned an ensign on April 27, 1896, his first
assignment aboard the historic Gutter BEAR.
In 1900, Admiral Hamlet was assigned to the Nava! i.ar College at Newport,
Rhode Island, for the War College Course, one of'the first officers of tho
Coast Guard assigned to this institution.
Guard to be assigned to the Cutter BEAR.

In 1901, he returned to the Coa.st
From then until the entrance of

the United States into the World War, he served aboard units of the service
on both the East and best Coasts, Alaskan and Arctic waters.
hhen the United St.-tes entered the World war, he was assigned to the
Third Naval District, and organized the various activities and the training
of personnel at Naval Section Bases Six and Nine, subsequently joining in
October, 1918, the United States Naval Forces at Brest, France, assuming
command of the U.S.S. MARIETTA.

While in command of this vessel, he rescued

on the morning of April 28, 1919, off the coast of France, the crew of two
officers and 45 men from the U.S.S. JAMES, which was sinking in a heavy gale.
In recognition of his gallant conduct upon this occasion,- the Secretary of
the Treasury awarded him the Congressional Gold Life-Saving Medal of Honor,
oiid he was the recipient of a Special Commendation from tho Secret ry of the
Ravy entitling him to wear the Si Ivor Stair upon his service ribbon.
In September, 1919, Admiral Hamlet was assigned as Personnel Officer and
m charge of Ship Operations, serving in such capacity until his detachment in
1922.

He then assumed command of the Coast Guard Cutter MOJAVE at

Honolulu.
tfhen Congress in 1924 made provision for the acquisition of additional
essels for the Coast Guard, ho was ordered to the Philadelphia Navy Yard

- 3 -

and superintended the reconditioning, outfitting and comnissioning of the
20 destroyers turned over to the Const Guard from the Navy, and trained the
crews to go aboard these craft.

The Commandant commended him for his except­

ional meritorious and efficient service which involved ' an expenditure of
over $2,400,000 in repair funds.

When these reconditioned destroyers were

plrced in commission and organized into the.Coa.st Guard Destroyer Force, he
was placed in command of them in July, 1925.

IMPORTS OF DISTILLED LIQUORS AM) WINES AND DUTIES COLLECTED THEREON - JULY 1938

DISTILLED LIQUORS (Proof Gallons):
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
STILL WINES (Liquid Gallons):
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
SPARKLING WINES (Liquid Gallons):
Stock in Customs Bonded Ware­
houses at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported from Customs Custody
Stock in Customs Bonded Ware­
houses at end
DUTIES COLLECTED ON:
Distilled Liquors
Still Wines
Sparkling Wines
Total Duties Collected on Liquor
Total Duties Collected on Other
Coxnmodit i es
TOTAL DUTIES COLLECTED
Percent collected orv Licmops

July
1938

June
1938

July
1937

3,493,666
724,066

3,517,231
903,599

3,863,839
1,099,673

3,709,510
5,727,069

8,673,469

4,217,732
742,291
8,926

4,420,830
924,466
2,698

4,963,512
1,074,451
19,815

9,436,579
5,924,165
45,899

12,101,291
8,154,732
77,313

3,466,515

3,493,666

3,869,246

3,466,515

3,869,246

1,320,709
133,443
1,454,152
148,283
3

1,363,376
154,536
1,517,912
193,251
3,952

1,298,304
254,277
1,552,581
215,899
717

1,430,547
1,297,613
2,728,160
1,412,169
10,125

1,082,959
1,924,651
3,007,610
1,667,269
4,376

1,305,866

1,320,709

1,335,965

1,305,866

1,335,965

294,136
17,443
311,579
18,153
-

297,413
24,192
321,605
27,241
228

206,178
43,872
250,050
32,457
103

271,133
172,125
443,258
148,401
1,431

141,325
273,120
414,445
196,578
377

293,426

294,136

217,490

293,426

217,490

# 1,822,574
125,800
53,814
1 2,002,188

$ 2,287,387
162,640
81,039
$ 2,531,066

$ 2,608,325
192,694
96,237
$ 2,897,256

$ 14,607,770 # 19,999,792
1,479,999
1,227,375
584,955
437,892
$ 16,273,037 " $ 22,064,746

21.098,808

19.419.402
$21,950,468

37.751.545
$40,648,801

152.246.770
$168,519,807
9.796

$23,100,996
8.T&

11.596

•7.196

7 Mos. (Jan.-July)
1938
1937

3,427,822

287.550.511
$309,615,257
7.1?S

Sta.

OFFICE OF THE COMMISSIONER OF CUSTOMS

muii eSi

i93o

TO MR. GASTON
FROM THE ACTING COMMISSIONER OF CUSTOMS:

There is transmitted herewith a statement showing imports
of distilled liquors and wines, and duties collected thereon,
covering the month of July 1938, with comparative figures for
the months of July 1937 and June 1938, and the first seven
months of the calendar years 1937 and 1938, which may be
suitable for press release.

Inclosure

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Friday, September 2, 1938«______
9-1-38

Press Service
No. 14-43

Connissioner of Customs James H. Moyle today issued the following statement
showing imports of distilled liquors and wines, and duties collected thereon, cover­
ing the month of July, 1938, with comparative figures for the months of July, 1937,
and June, 1938, and the first seven months of the calendar years 1937 and 1938:
July
1938
DISTILLED LIQUORS
(Proof Gallons)
Stock in Customs •
Bonded Warehouses
at beginning .•••.
Total Imports (Eree
and Dutiable) ....
Available for Con­
sumption .....
Entered into Con­
sumption (a) .....
Stock in Customs
Bonded Warehouses
at end ,.........
STILL WINES
(Liquid Gallons)
Stock in Customs
Bonded Warehouses
at beginning .....
Total Imports (Eree
and Dutiable) ••••
Available for Con­
sumption ........
Entered into Con­
sumption (a) ....
Stock in Customs
Bonded Warehouses
at end ...........
SPARKLING WINES
(Liquid Gallons)
Stock in Customs
Bonded ^W areheus es
at beginning .....
lotal Imports (Eree
^ d Dutiable) ....
Available for Con­
sumption ___ _
into,Consumption Ca) ____
in Customs
Bonded Warehouses
at end ....

June
1938

July
1937
:

7 Mos. (J;an.-July)
1938
1937
t“!

3,493,666

3,517,231

3é863,829

3,709,510

3,427,822

724,066

903,599

1,099,673

5,727,069

8,673,469

4,217,732

4,420,830

4,963,512

9,436,579

12,101,291

742,291

924,466

1,074,451

5,924,165

8,154,732

3,466,515

3,493,666

3,869,246

3,466,515

3,869,246

1,320,709

1,363,376

1,298,304

1,430,547

1,082,959

133,443

154,536

254,277

1,297,613

1,924,651

1,454,152

1,517,912

1,552,581

2,728,160

3,007,610

148,283

193,251

215,899

1,412,169

1,667,269

1,305,866

1,320,709

1,335,965

1,305,866

1,335,965

294,136

297,413

206,178

271,133

141,325

17,443

24,192

43,872

172,125

273,120

311,579

321,605

250,050

443,258

414,445

18,153

27,241

32,457

148,401

196,578

$93,426
294,136
217,490
293,426
217,490
--------------------------------- ~~
'
■
$ 1,822,574 $ 2,287,387 $ 2,608,325 $14,607,770 $19,999,792
125,800
162,640
192,694
1,227,375
1,479,999
53,814_______ 81,039______ 96,237
437,892
584,955

DUTIES collected ON:
liquors
Still Wines
Sparkling Wines
?*ties Collected_______
on Liquors
$ 2,002,188

$ 2,531,066

$ 2,897,256

$16,273,037 $22,064,746

a) Including withdrawals for ship supplies and diplomatic use.
— OOO—

( 3 )

lake vessels of the United States of 500 gross tons or over, and
present^himself for one month’s additional training each year, or
two month/s each two years, his standing in the United States Maritime
Service is maintained, and he will receive an annual bonus of
one month’s pay for his rating, in addition to his pay while under­
going training*
Training stations will be established at Hoffman Island in
New York harbor and at Government Island on San Francisco Bay* A
training station for licensed (officer) personnel will be established
later at Fort Trumbull, New London, Connecticut*
Admiral Waesche announced the appointment of Commander
W. N. Derby, U«S*C«G*, as Chief of the United States Maritime Service*

( 2 )

completed forms are to be mailed to the United States Maritime
Service at Coast Guard Headquarters, 1512 H Street N*W*, Washington,
D.C.

Applicants for enrollment should not come to Washington, but

will be advised by letter or telegram where to report, which in most
cases will be the Division headquarters of the Coast Guard nearest
to their homes, whence after examination and acceptance they will
be furnished transportation to the place of training*
While others vàio have the necessary qualifications may make
application, initial enrollments will be made only of those who are
now unemployed*
All initial enrollments are to be probationary in ch aracter.
Enrollees will be given three months* training in seamanship and other
specialized work of the Merchant Marine according to the c la s s if ic a tio n
which they may elect or to which they may be assigned*

Compensation

will be paid and subsistence and necessary working clothing w i l l be
provided at Government expense*

The rate of pay will accord with the

rate of pay in the Coast Guard for the rating given the enrollee,
except that initially all unlicensed personnel will be enrolled a t
the base rate of $36 a month*

In the course of training, advancement

may later be made to higher ratings*
Permanent enrollment in the Dhited States Maritime Service
is to be made after satisfactory completion of the three months* cours^
of initial training*

If thereafter the enrollee is employed on the

average not less than eight months of each year on any seagoing or

l<4' W

Secretary Morgenthau announced today that an agreement
had been reached with the United States Maritime Commission providing
that the Coast Guard will undertake the administration of the
United States Maritime Service, authorized by the Merchant Marine
Act of 1936 as amended by the Act of June 1938«
The T&ited States Maritime Service is to be a training
service for licensed and unlicensed personnel of the Merchant Marine
of the United States«
Rear Admiral Russell R* Waesehe, Commandant of the
United States Coast Guard, announced that enrollment of applicants
for membership in the Maritime Service will begin on Tuesday,
September 6«
Enrollment in the Maritime Service is wholly voluntary*
Those eligible for enrollment under the regulations agreed to by
the United States Maritime Commission and the Secretary of the Treasu
are persons over 21 years of age who have had not less than two
years experience on seagoing or lake vessels of the United States

ÎU

f 500 gross tons or over, and are physically and mentally qualified

&

S

f 0r further service «at sea«

The regulations prohibit d iscrim in atio n

on account of race or creed, or membership or non-membership in any
organization«
Application for enrollment is made upon application forms
which are available in the offices of all Collectors of Customs and
Shipping Commissioners and at Coast Guard recruiting stations«

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Friday, September 2, 1938.

Press Service
No. 14-44

Secretary Morgenthau announced today that an agreement had been reached
with the United States Maritime Commission providing that tire Coast Guard will
undertake the administration of the United States Maritime Service, authorized
by the Merchant Marine Act of 1936 as amended by the Act' of June, 1938*
The United States Maritime Service is to be a training service for li­
censed and unlicensed personnel of the Merchant Marine of the United States.
Rear Admiral Russell R. Waesche, Commandant of the United States Coast
Guard, announced that enrollment of applicants for membership in the Maritime
Service will begin on Tuesday, September 6.
Enrollment in the Maritime Service is wholly voluntary.

Those eligible

for enrollment under the regulations agreed to by the United States Maritime
Commission and the Secretary of the Treasury are persons over 21 years of age
who have had not less than two years experience on seagoing or lake vessels of
the United States of 500 gross tons or over, and are physically and mentally
qualified for further service at sea.

The regulations prohibit discrimination

on account of race or creed, or membership or non-membership in any organization.
Application for enrollment is made upon application forms which are avail­
able in the offices of all Collectors of Customs and Shipping Commissioners and
Coast Guard recruiting stations.

The completed forms are to be mailed to

the United States Maritime Service at Coast Guard Headquarters, 1512 H Street,
> Washington, D.G.

Applicants for enrollment should not come to Washington,

but will be advised by letter or telegram whore to report, which in most cases
W1U t>e the Division headquarters of the Coast Guard nearest to their homes,
w ence after examination and acceptance they will be furnished transportation

— 2 *-*
to the place of training.
While others who have the necessary qualifications nay make application,
initial enrollments will he made only of those who are now unemployed.
All initial, enrollments are to ho probationary in character.

Enrólleos

will he given three months* training in seamanship and other specialized work
of the Merchant Marine according to the classification which they may elect or
to which they nay he assigned#

Compensation will he paid and subsistence and

necessary working clothing will he provided at Government expense.

The rate of

pay will accord with the rate of pay in tho Coast Guard for the rating given
the enrolleo, except that initially all unlicensed personnel will ho enrolled
at the base rate of $36 a month.

In the course of training, advancement may

later he made to higher ratings.
Permanent enrollment in tho United States Maritime Service is to ho made
after satisfactory completion of the three months* course of initial training#
If thereafter the onrollee is employed on the average not less than eight
months of each yes.r on any seagoing or lake vessels of the United States of 500
gross tons or over, and presents himself for one month's additional training
each year, or two months oach two years, his standing in the United States
Maritime Service is maintained,'and he will receive an annual bonus of one
month*s pay for his rating, in addition to his pay while undergoing training#
Training stations vd.ll he established at Hoffman Island in Hew York
harbor and at Government Island on San Erancisco Bay#

A training station for

licensed (officer) personnel will be established later at Port Trumbull, Hew
London, Connecticut#
Admiral Waesche announced the appointment of Commander W. H. Derby,
W.S.C.G., as Chief of the United States Maritime Service.
■oOo—

TRIASTJKY p

j M

I

Washington
Press Serviol

The Secretary of the Treasury announced last evening that the
tenders for $100,000,000, or thereabouts, of 91-day Treasury hill*,
to he dated September 7 and to mature December 7, 1938, uhieh sen
offered on August 31, were opened at the Federal Reserve banks on
September I#
The details of this issue are as follows!
Total applied for
Total accepted
Range of accepted bids!
High
Low
Average price
(26 percent of the amount bid for at the low price was accept»!

TREASURY DEPARTMENT
Washington
|

P r e s s S e rv ic e
No. 14-45

FOR RELEASE, MORNING- NEWSPAPERS,
Saturday» September 3 , 1938.
9 -2 -3 8

The S e c re ta r y o f th e Treasury announced l a s t evening th a t the tenders
for $ 1 0 0 ,0 0 0 ,0 0 0 , o r th e re a b o u ts, o f 91-day Treasury b i l l s , to be dated
September 7 and to mature December 7 , 1938, which were o f f e r e d on August 31,
wero opened a t th e F ed era l R eserve banks on September 2.
The d e t a i l s o f t h i s is s u e are a s fo llo w s :
Total applied f o r
Total accepted

- $ 2 2 8 ,9 7 0 ,0 0 0
- 1 0 0 ,1 4 8 ,0 0 0

Range o f accep ted b id s :’
High
Low
Average p r ic e

— 9 9 .9 9 2 E q u iv alen t r a t e approxim ately 0 *0 3 2 p e rce n t
- 9 9 .9 8 6
«
«
I
0 .0 5 5
- 9 9 .9 8 8
n
w
11
0 .0 4 9
H

(26 percent o f th e amount bid f o r a t th e low p r ic e was accep ted )
— oOo—

TREASURY DEPARTMENT

Washington
RELEASE MORNING- NEWSPAPERS
Tuesday
September 6 1938

for

PRESS SERVICE
No. 14-46

Acting Comptroller of the Currency Marshall R. Diggs announced
today that the 5243 active national banks in the country on June 30,
1938, reported gross earnings for the first six months of 1938
amounting

to §414 761 000 00, and expenses of $290 351 000 00,

resulting in net earnings from current operations of $124 410 000 00
compared to $140 259 000 00 in the previous six months.

Adding to

the net earnings profits on securities sold of $53 546 000 00 and
recoveries on loans and investments, etc., previously charged off
of $40 332 000 00, less losses and depreciation of $105 723 000 00,
the net profits before dividends in the period amounted to $112565 000 00, which was 7.14 per cent of the par value of common
and preferred capital stock, and 3.44 per cent of capital funds.
Dividends declared on common and preferred capital ware $69 816 000
and $5 098 000 00, respectively, a total of $74 914 000 00, repre­
senting 4.75 per cent of the total par value of capital stock.
In the yesr ended June 30, 1938, the net profits of national
banks before dividends were $203 423 000 00, a decrease of $78,138 000 00 in the amount reported for the previous year.
The gross earnings from current operations aggregated $350,551 000 00, and the expenses $585 882 000 00, resulting in net
earnings from current operations of $ 264 669 000 00, a decrease
of ¡¡i>4 677 000 00 in the year.

Recoveries from assets previously

charged off of $161 742 000 00, including profits on securities
sold of $76 620 000 00, decreased $117 341 000 00, and losses and
■depreciation charged off of $217 988 000 00 decreased $44 380 000 00
Dividends declared on common and preferred stock totaled
$143 740 000 00, in comparison with $153 475 000 00 in 1937.

The

dividends were 9.11 per cent of common and preferred capital and
4.39 per cent of capital funds.

~2

-

A comparison of the earnings, expenses and dividends in the
year ended June 30, 1933, with those for the year ended June 30,1923, shows that although there were nearly 2500 fewer hanks in
1933 and a decrea.se of §16 435 000 00 in the par value of capital
wtock outstanding, the net earnings from current operations of
0264 669 000 00 and net profits before dividends of 0208 423 000 00
were but $62 743 000 00 and $61 735 000 00, respectively, less than
ten

years

previous.

Gross earnings from current operations in 1933 include service
charges on deposit accounts of $33 519 000 00, a charge not generally
required of depositors until recent years, and trust department in­
come of $33 447 000 00, which increased $17 282 000 00 in the tenyear period.
Expenses in 1933 include interest on deposits of $127 052 000 OC
a decrease of $325 233 000 00 since 1923, due principally to the
Banking Act of 1935 which prohibited the payment of interest on
demand deposits subsequent to August, 1937.
Dividends of 9.11 per cent on capital stock in 1938 are com­
pared to 12.88 per cent in 1923.

COMPARISON OF JSMBINGS, FXFFNSFS AND DIVIDENDS OF NATIONAL BANKS FOR YFARS
FNDFD JUNF 30, 1^37 AND 1938
(Amounts in thousands o f d o lla r s )
r S

S ix months ended
June 30,
Dec. 3 1 1
1938
1937

:
:
:

Year ended
June J O ,
: June 3 0 ,
1938
1937

rental sio ck , par v a lu e :
[preferred................................................... $ 266 095
1 311 326
[ Cemmon............................. ....................
TOTAL CAPITAL STOCK...................... 1 577 421

$ 284 831
1 297 882
1 582 713

1 3 1 1 326
1 577 421

$ 298 577
1 288 7 U9
1 5 S7 7 2 b

Capital funds............................................. 3 273 819

3 244 198

3 273 819

3 2 12 16 5

192 601

377 076

356 732

160 899

313 to 3

331 666
33 779
29 353

gross operating earn in g s:
[Interest and d iscou nt on lo a n s ... 184 U75
[in terest and-dividends on “bonds
and s e c u r i t i e s .................:............. 15 2 50U
1 5 253
[ Trust department....................................
| Service<charges on d e p o sit a c c ts
17 209
26 4(51
|Rent received ................................
| Other earnings ..................................... m 18 889
TOTAL GROSS OFJURATIN G FANNINGS 4 l4 761
bross operating expenses:
| Salaries and wages-«
4g
O ffic e r s .............................................
Employees other than o ffic e r s ...
70
| Interest on d e p o s its ..........................
62
[ Real e sta te ta x es ..
. 10
I Other t a x e s ...
15
82
[ Other expenses......................
TOTAL GROSS OFFRATING FXFFNSFS 290

18 194
16 3 1 C
26 66 l
21 12 5
~ 5 3 5 790

429
O il

4 s ■769

964
797
694

64 088

72 434
1 1 469

$ 266 095

33
33
53
40

to 7
519
092

50 125

01>+

% 542

850 551

847 197

97 198
142 445

135 363

127 052
22 266

1 3 1 083
2 1 304

93 247

33 159

31 533

456
751

15 839
82 932
295 531

16 5 388

163 695

585 882

"5 7 T W *

p OFFRATING FARNINGS.......................... . 124 4lO

l4 o 259

264 669

269 346

22 998

38 7^8

13 293

8 499
44 790

29 382
16 972
85 122

23 074

76 620

67 864

l 6 l 742

279 583

39 270
45 244
l 4 019

66 203
103 009
24 592

111 000

13 732

Recover ie s:
[On 1 cans .7......
15 770
On “bonds and s e c u r i t ie s ....
16 089
I All other ...
___
S ±D
TOTAL RFCOFFRIFS................................
40; 332
.if*
rrofits on s e c u r i t ie s s o l d ...............
53 546
TOTAL RFCOVFRIFS AND PROFITS ON
SFCURITIFS SOLD.
losses and d e p re cia tio n :
[ On loans
I On “bonds and s e c u r i t ie s
I On “banking house, fu rn . and f i x . I All other
total LOSSFS AND DFFRFCIATION .....
pT PROFITS BFFORF DItfIDFNDS
livid ends d eclared :
I °& preferred s t o c k ...........
1 On common stock
total d ifid fn d s DFCLARFD ...........
r~r — -— -—

93 878
26
57
10
10
105

933

64 243
73 208
17 274
“ I 54 725 “
“

124 858

573
H52
723

1 1 2 265

24 184
217 988

94
26
30
2'6'2

.... 1 1 2 565

95 858

208 423

286 561

5 098

69 816
74 914

4 665
64 1 6 1
68 826

9 763
133 977

.. 143 740

l 4 496
138 979
W V 75 —

5 248

5 266

5 24g

5~W ~

765

069
434
865
368----

COMPARISON OF FAMING-S, FXPFNSFS AND DIVTDFNDS OF NATIONAL BANKS, YFARS
FNDFD JTJNF 30, 1928 AND 1938
(Amounts in thousands o f d o lla r s )

umber of a c tiv e hanks

1938

19 2 S

3 24g

7 691

tarifai stock:, p ar v alu e:
Class A P r e f e r r e d ........................ 24g 885
Class B P r e fe r r e d ..............................
17 210
Common........................ —.......................... 1 311 326
T o t Z Z Z Z Z I Z Z Z Z Z Z ..........." 1 577 421
Lrplus.................... !.... L................... ...... ..... L - U S J i l l
Total c a p ita l and su rp lu s.... 2 695 834
kapital funds............ ............... ................. 3 273 819
pross earnings:
Interest and d iscou n t on lo a n s .. 377 076
Interest and dividends on Bonds
and s e c u r i t i e s ................................. 313 403
Trust department............... ....................
33 *&7;
Service charges on d e n o sit a c c t s
33 5^9

$ 248 885
17 210

1 4 iq 695
3 013 551
5 570 988

-2 8 2 530
-l6 435
>501 282
- 3 1 7 717
-2Q7 l6q

8 17 2 3 1

-44o 155

311 338

2 065
17 282
(—13 719
L

1 593 856.
1 593 856

16 16 5

(l4o 344
1

...
Expenses:
Salaries
Interest
Taxes...

850 5 §L

239 643
127 052

..

Total expenses
[Ret earnings...............................................
Recoveries
On loans ............................. ...
On Bonds and s e c u r i t ie s
All o th e r....... ....................... .
Total re c o v e rie s .......

53 799
16 5 388
585 882
265 669"”
2638 768

frpfits on s e c u r i t ie s s o ld ...........
'Total re co v e ries and p r o f i t s
on s e c u r itie s sold ...............

lends declared:
On preferred sto ck
COTTITHOTî

o

4* /•>i«-*

Minus sign denotes d e cre a se .

262
452
68
174
957
327

609
285
750
017
66l
4i 7

-4 3 4 527

-2 2 966

-3 2 5 233
- l 4 951
-8 629

- 3 Ï 1 .7,7.2__
-6 2 748
19 249
22 053

29 382
l 6 972
85 122

36 469

7 351
i+S 633

76 620

59 328

1 7 292

l 6 l 742

95 797

65 9 U5

92 106
29 19 1

-2 5 903
73 818

18 150
13 609
1 3 3 ~C55

6 442
1C 575
è k 932

270 158

- 6l 735

208 423

9 763

•

1 285 078

19 519
7 3 20
9 621

fosses and d e p re cia tio n :
On loans................................................
66 203
103 009
On Bonds and s e c u r i t i e s .......... ....... ..
On Banking house, fu rn itu re
24 592
and f i x t u r e s .............„................
All other ....
24 184
>n 217 988
...

In c re a s e or
decrease
sin c e 1928

133 977
143 74b

,.)r-,rrr
205 358
205 358

9 763
-7 1 381
-6 1 618...

msBB m m ¿m
The Ceramiastoner of Customa

to áa y

announeed that preliminary

report® show importa of 694,614 square® of red sedar shingle® fres
Cenada» under thè quote provisions of thè Canadien Trade Agreement,
durlng th# period JUly 1 to cieptember 9» 1926*
These Importation® represent 80*3 percent of the quota estabiished
in Executive Order No. 9946» of Auguet 9» 1938» ehieh limita importa­
tions of red sedar shingle® fresa Ganada to 864»831 square® durlng the
last six months of th® calendar year 1938.
For th® control of the current quota on importation® of thi®
commodity, custom® offleer® in charge et porte of entry'iM» fëquired
to aeeure télégraphié authorization from the Bureau of Custom® for
acceptance of entry thereof for oonsuaptlon» beginning September 4,
1938» When the current quota i® filiad» further importation® of this
commodity may not be admitted to entry for conswptlon until the begin­
ning of the next quota period on Fanuary 1, 1939*

m

9/6/38

Sta

MR. GASTON
(Attention of Mr* Schwarz, Boom 289, Treasury Building}
FROM THE AC TIM» COMMISSIONER QF CUSTOM:
There is attached for immediate release a tabulation showing
imports of red cedar shingles fron Canada, tinder the quota provisions
of the Canadian Trade Agreement, during the period July 1 to
September 3, 1938*
When the release has been mimeographed, please have 130 copies
forwarded to Miss Henry, Roca 115, Washington Building.

m

9/6/38

TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE,
Tuesday, September 6, 1938.

Press Service
No. 14-47

The Commissioner of Customs today announced that preliminary
reports show imports of 694,614 squares of red cedar shingles from
Canada, under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to September 3, 1938.
These importations represent 80.3 percent of the quota established
in Executive Order No. 7946, of August 9, 1938, which limits importa­
tions of rod cedar shingles from Canada to 864,881 squares during tne
last six months of the calendar year 1938.
Eor the control of the current quota on importations of this
commodity, Customs officers in charge at ports of entry have been
required to secure telegraphic authorization from the Bureau of Customs
for acceptance of entry thereof for consumption, beginning September 4,
1938.

When the current quota is filled, further importations of this

commodity may not be admitted to entry for consumption until the beginning
of the next quota period on January 1, 1939.

oOo—

-

2

-

Government
Securities

Governmentguaranteed

Securities

Fund or Agency.

Otker
Securities!
-------------------------- --- ----------

(OCX) omitted)
$3 , 5 8 7 ,1 7 1
Old-Age Reserve Account ........... .
Foreign Service Retirement and
Disability Fund ............... .
Canal Zone Retirement and Disability
Fund (l)....................•*••••••
Adjusted Service CertificatetFund .....
Alaska Railroad Retirement and
Disability Fund •••••••••••••••.•••.

As .of. M g.33L.Jagl

Federal Farm Mortgage Corporation ...
Federal Land Banks
Federal Intermediate Credit Banks •••
Banks for Cooperatives ........ .
Production Credit Corporations ......
Production Credit Associations .....
J oint Stock Land Banks ** ...........
Federal Home Loan Banks
Home Owners’Loan Corporation
Reconstruction Finance Corporation ••
Inland Waterways Corporation** ••••••
tUS. Spruce Production Corporation «•
totals

Notes

*

$2 6 9 ,7 0 2

$ 1M33

7 0 0 ,3 0 0

-

-

3*702

-

-

li-, 121
2 MOO

mm

-

-

-

-

$'+.320,596

$ 2 6 9 ,7 0 2

$ W+,833

$

$

$762,705
5OO

5 O2

-

6^,935

9 ,0 0 0
2 3 ,9 9 5
1 3 , 91«
1 1 ,0 1 1
7 ,3 5 1
1 0 ,1 8 2

6 2 , 1+36

5,109
1 J 02

1 ,6 3 8
2 5 , 1+26
1 ,1 0 0
US, 020

3 ,2 8 7

125

$

-

5 8 ,3 1 1

2 7 2 ,6 8 9

-

8,500

25,907
75,293
242
-

-

-

-

-

$ 7 5 ,i« 7

-

$873,11+7
= m

11 j j ' j r a e B

All trust funds may be invested in Government and Governmentguaranteed securities, and certain funds may also be invested
in additional securities as indicated:
(1) In Federal Farm Loan Bonds;
(2 ) No Limitations.

Consist principally of Federal Farm Loan Bonds and Federal Intermediate
Credit Bank Debentures.

** Latest figures available.

- 0O0-

TREASUKT

DEPARTMENT

Washington
FOR RELEASE,
U

*1 - fC1

^

Press Service
No. iqjitr

v

Secretary Morgenthan released today the following statement relative
to the amount of Government and other securities held in governmental trust
accounts and hy governmental corporations and agencies:
SECTTPITIFS HELD AS INVESTMENTS IN TRUST FUNDS AND IN ACCOUNTS
OF CERTAIN GOVERNMENTAL CORPORATIONS AND AGENCIES
ON DATES INDICATED
Government GovernmentOther
Securities guaranteed
Seeuriti
---- -------- SftQ'flr.itiga_____ ___
(000 omitted)

Fund or Agency

As..Qf.jluly

2 7 ,, 19 5&1

$ 166,83!*
Postal Savings System ................. $ 928,196
Federal Deposit Insurance Corporation «•••• 3^9*09^Individual Indian Trust Funds ..........
1*2,H6 3
71
Mutual Mortgage Insurance Fund and
Housing Insurance Fund ....... .
19,686
102,687
Federal Savings and Loan Insurance Corp....
10,015
Civil Service Retirement and Disability
Fund ............. ........ .
H69 ,lOo
U.S.Government Life Insurance Fund (l) .... 762,867
D.C.Teachers' Retirement Fund (2)
5,536
95
Alien Property Custodian Fund ••••«••••••••
30*710
Panama Canal Zone Funds (l) ...............
1,850
5
General Post Fund, Veterans* Administration
1,082
Library of Congress Trust Fund (2) ........
1
D.C.Workmen’s Compensation Fund (l) .......
10
Longshoremen’s and Harbor Workers’
10
Compensation Fund (l) ........... .
117
German Special Deposit Account .......
3*957
National Institute of Health Gift Fund •
83
Comptroller of the Currency Enployees’
Retirement Fund
1,2^2
Pershing Hall Memorial Fund •••«•••••••••••
192
National Park Trust Fund (2 ) .......... .
12
Ainsworth Library Fund, Walter Reed
General Hospital ........ .
District of Columbia Water Fund.... .
73 °
Unemployment Trust Fund .............. .
^7?»000
Railroad Retirement Account ............
68,200
*

$3 .5 2 7 ,1 7 1

$269,702

$ -

21

1*2,067

1,965
m

290
1

1*35
11
^3

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, SepteaDor 7, 1938.
9 /0 f 38.

Press Service
No. 14-48

Secretary Mergenthau released today the following statement rela,tivc
to the amount of Government and other securities held in governmental trust
accounts and by governmental corporations and agencies:
SECURITIES HELD AS INVESTMENTS IN TRUST PUNDS ¿IIP IN ACCOUNTS
OP CERTAIN GOVERNMENTAL CORPORATIONS AND AGENCIES
O N DATES INDICATED
Government
Securities
Pund or Agency

GovernmentOther
guaranteed
Securities*
Securities
(000 omitted)

As of July 27, 1938:

II tr

928,190
Postal Sa.vings System.................$
369,094
Pederal Deposit Insurance Corporation ••
42,463
Individual Indian Trust Eunds .........
Mutual Mortgage Insurance Fund and
19,686
Housing Insurance Eund ...... ...... .
10,015
Federal Savings and Loan Insurance Corp.
Civil Service Retirement and Disability
469,106
Fund
............ ..........
762,867
U.S. Government Life Insurance Fund (l).
5,536
D.C.Teachers* Retirement Fund (2) ......
30,710
Alien Property Custodian Fund ........
1,850
Panama Canal Zone Funds (l) ...........
General Post Fund, Veterans * Administration •..... ...... ...... ............
1,082
1
Library of Congress Trust Fund (2) ....
10
D.C.Workmen*s Compensation Fund (l) ....
Longshoremen*s and Harbor Workers’
117
Compensation Fund (l) ............ ..
3,957
German Special Deposit Account .......
83
National Institute of Health Gift Fund •
Comptroller of the Currency Employees’ >»%
1,242
Retirement Fund ........... .
198
Pershing Hall Memorial Fund
12
National Park Trust Fund (2) .........
Ainsworth Library Fund, Walter Reed
10
General Hospital................. .
736
District of Columbia Water Fund ........
872,000
Unemployment Trust Fund
. 68,200
Railroad Retirement Account
,587,171

$166,834
71
102,687

$

-

—
"

é
95

5

-

10
-

42,067
1,965
290
1
43o
11
43
—

-

—
—

-

—
-

-

«

-

-

—

$269,702

$44,833

-

2

-

Government
Securities
Fund or Agency

fatal
Totals brought forward

.............. .

$3,587,171

Old-Age Reserve Account ..............
Foreign Service Retirement and
Disability Fund ......... ........ .
Canal Zone Retirement and Disability
Fund (l)»«.,...................... .
Adjusted Service Certificate Fund ••••••
Alaska Railroad Retirement and
Disability Fund. ............ ....... ;

700,300

Toto.ls ....... .
of July 31, 1938:
Federal Farm Mortgage Corporation .......
Federal Land Banks ...................
Federal Intermediate Credit Banks ......
Banks for Cooperatives ........... .
Production Credit Corporations .......
Production Credit Associations .......
Joint Stock Land Banks ** ......... .
Federal Heme Loan Banks .... ....... ..
Home Owners* Loan Corporation
Reconstruction Finance Corporation .....
Inland Waterways Corporation ** .......
U.S. Spruce Production Corporation .....

Other
Government
guaranteed
Securities*
Securities
(000 omitted)

$269,702

$44,833

-

-

4,121
24,800

—
—

-

502

—

3,702

$4,320,596

$269,702

$

$

$44,833

5

Totals
Note:

.........

58,311
64,935
62,436
5,109
1,702
1,638
25,426
1,100
48,020
3,887
125
$

272,689

9,000
23,995
13,948
11,011
7,351
10,182
-

$762,705
500
—
8,500
25,907
75,293
242
-

-

-

«

$ 75,487

$873,147

All trust funds may be invested in Government and Governmentguaranteed securities, and certain funds may also be invested
in additional securities as indicated:
a) In Federal Farm Loan Bonds;
(2) Ho Limitations..

* Consist principally of Federal Farm Loan Bonds and Federal
Intermediate Credit Bank Debentures.
* Latest figures available*
0O0—

— d

a llo tte d , to »eke d e li vary o f co tes on fu ll-p a id su bscript ions a llo tte d » and they
may leene i n t e n « reeelpte pending d elivery o f the d e fin itiv e n otes.
2.

the Secretary o f the treasu ry my a t any time* or fr o « t t m to tine» p*

scrib e supplemental o r amendatory r u le s and regu lation s governing the offering,
which w ill be eonmnnleated promptly to the fed eral Be se rte banke*

mam mmmmm, m*t
secretary o f the treasu ry .

«hall be decaed by bi» bo be im the publie interest! end ble motion in any or ail
of these respects shell be fissi* Subject to these reecrvetieae* subscription« in
payment of ebieb Treasury Kotes of Series $-1938 sre tendered trill be allotted in
full* Allotment notlees »111 be east out promptly upon allotment* asá the basis
of the allotment will be pabllely announced.
v f*

paim sht

1* Payment et par and seemed Interest from June 18* 1988* for notes allotta
on easb subscriptions must be made or eompleted on or before September 18* 1939, o:
on later allotment*

la emery ease ubere payment is mot so completed, tbs payasnt

ui«b application up to 10 poreeat of tbo amount of motos appliod for shall* upon
declaration aedo by the Secretary of tbo Treasury im bis discretion* be forfeited
to tbo United States* Amy qualified depositary will be permitted to make payment
by credit for motes allotted to it for itself and its customers up to amy amount
for which it shall bo qualified im excess of existing deposits, «feen so notified
by tbo Federal Reserve bank of its district* Treasury Kotes of Series 8-1938, »
lug December IS* 1938* with coupon dated December 18* 1938* attached* will be ac­
cepted at par in payment for any mota» subscribed for and allotted* end should
Accrued

accompany the subscripti«®./ interest from Fume 18* 1938* to Septeafeer 18* 1938,
on the maturing notes will be credited to subscribers* and interest for the seas
period on the now notes* which will bo delivered with coupon dated December 18,
1938* attached* will be charged to subscribers*

Tbs difference {#0*814888 per

#1*0001 will be paid following acceptance of the notes*
f,

1.

mmsmL m o n B v m

As fiscal agents of the United States* Federal Resene banks are author!

and requested to receive subseriptlens* to make allotments on the basi* and *F t0
amounts Indicated by the Secretary of the Treasury to the Federal Resene bank« ol
the respective districts, to issue allotment notices* to receive payment for fl0ta1

*3. tbo noto* «hall Im esempi, both as to priaeipal and intereet,
fro» all taxation (except «»tata or liberitene# Ui«s, or gift taxes)
now or hareafter iapoeed by thè United Stata»# any Stata, or any of
tbe possessione of thè United Statai, or by any locai tarine autfcority.
*3. The noto« olii bo aecepted at por durine auch timo «od andar
euefc rulee and ragulations o» »ball be presoribed or approvo* by tbo
Soorotory of tbe Treaeury in paymsct of insane and profite toro» payablo et tbe maturity of tbe noto«*
*4. The notee olii be aoceptable to sentire depositi of potili
monsys» bit olii mot bear thè siranistiem pririlega«
w5. Bearer notes «itb interest osapone attashed olii be lesned
in deaosftinatlcms of #100, #800, $1,000, $0,000, #10,000 end 1100,000«
The notes «ili net be iesued in regi eterea fora.”

n i.

SUBSCRIPTI0H AHD ÀtUmCSiT

1« Subioriptioai «ili be reeeired et thè Fedirai lesero# bsnks and branche® «j
et tbe Treaeury Department, Washington.

Banking inetitutioas gee«rally may sabait

subseriptlons ter aooonnt of eustonere, bert enly tbo Fiderai B s s e m baaks ned t d
Treasuty Department ars autherisid to est as offieial ageneiee.

Otbers thua baak«l

lag institot ione «ili not be peraltted to ontor subeerlptions soreept for tfceir w d
acoouBt.

Cash subeerlptions fron banks and trust «ompanlss for tfeeir e m asoonnt 1

«ili be xoeolrod i&thout deposit bit «ili be rostrieted in oaeh eas* to aa marni I
noi esoioding ©as-balf of thè eoabinsd oapltal and surplii of thi subseritoleg baila
or trust oomptmy. Ossb subieriptioni fro» all others must bo eeeosapenisd by p«y- I
meni of 10 pemmt of thè ameumt of notai appliod for. tte Soorotory of tfc*

\

rosomi ti» rigbt to olose tbo books as to «ny or all subeorlptions or el»*««» ol
iubsoriptloii at any tino «liberai notine.
3.

tbo Sooretary of tbo Treesury rasami tbo rlgbt to rejoot any iubseriptt|

in «bolo or in part, to allot Ione tban tbo assonai of notes applisd for, to ***• I
allotnmuti in full ujx» appUeations for emallor onerante and to aaks rsduesd «Uoij
menti upon, or to rsjeet, appUeations for largor aaounts, or to adopt s»y or al I
sald mstbods or snob otber methods of allotnost and elassifientioa of allotneni» n j

mvm a m w or rnmicx
1 *1/8 PSHosst fiuusonr »oro o?

u h s

Due June 13, 1943

Deted and hearing Interest from JUne 15, 193#

Interest papable June 13 end Dooember 15

jmmcm, mmm
1938
Department Direni** »e# 894
___
Publio Debt Sorrise

f m m i w W aM C W ,
Offlee of tbe Secretai?,
Washington, September 6» |
i. ofFssam 0* ì w ®

1. Ite Boeretary of thè Treasuzp, persuent te tbe autbority ©f tbe Seccai
liberty 8end Aet, apprese* September £4, Iflf, ss amesded, inrites subseriptioa«,I
et per «ed aeerued interest, tmm tbe people of tbe United atetes f©r 1*1/8 per- I
esst notes of tbe United Stetee, designate* Tfeasurp flotes of Series 4*194$«

I

smount of tbe offerii*# is $300,000,000, 0* tbereebouts, witb tbe rigbt resemi
to tbe Seeretery of tbe Treaauxy to increase tbe offerta# by am emount saffioient ]
t© eeeept eli eebeeriptions for «hi oh Tfceeeusy Motee of Series 8*1953, maturiag
Deeesbsr 18, 1938, ere tendered in pspmsnt end aecepted.
n*

tmommm m mmm

1» Tbe notes no« offered «ili be en edditìm to end «ili fox» e pert of tb«|
serios of 1*1/8 pereent Tmvmtf Notos of Serles 4*1943 lssued pursuent to Oapart#
ment Circular Ho. 888, deted June 3, 1938, «ili be freely intereben#eeble tb«r«wi«
ere identieel in eli reepeete tberewitb, end ere deeeribed in tbe followlag iuota*‘
tioa fro® Department Circular Ho. 688$
*1« tbe notes «ili be deted JUne 18, 1938, and «ili beer inierosi
fren tbet date et tbe rete of 1*1/8 peroent per «nana, papable seni*
annua!ly en Deoenber 15, 1988, and th»reafter en fune 15 end Decomber 18
in easb peer nabli tbe principal assount besómes papable. Tbep «ili
mature ¿tose 18, 1943, and «ili not be eubjeet to celi for redenptlon
prior to maturitp.

benda aUotted to it for itsalf and ita cuetcaare up to rniy ataount far whlch n
shall be

quali fisci Sa

«z «m i of arieti»* deposita* «fesa se noitfisd by thè ?ed«rq

»•serro beale of ite dietslot» Tsemmwy notes of Berta* WI88, aetiirlag Des«^
ber 15, 1958* witfe coupon datsd Dee«ubar 15« 1938* atteehod* will bs aoosptad tt
par In payasat for any benda subserlbod for osi ellottod* and ebooid sssoiepany
tbs subseriptioii. Àoemod intorost fro» luna 19* 1958* to Soptoober 15« 1953« on
tbs maturine notes (#5.108899 por #1*080) «ili be peld ÌbUovlsg acoeptanca of
thè notai
?.

g u à i

m onsicm

«ed rateaste* to rasaite sobaarlpticms* to aalce sllotnexits osi thè baste and up to
tbe aaoants indiaste* by thè Secretar? of thè Traessi*? to thè tedisi Baserve bau]
Of thè raspostira distriata* to imma aliata«»t notices, to reeelre jayasnt for

| tfcey «ay isso# istoria reeeipts pondisg delirar? of thè definiti?* benda.

8?

|
1

s o r i b e s n p p la n s e t a l o r «need s t o r y r o l o s and r a g ù l a t t o n e g o ra « R in g t b a

.

| whlefe « r l l l h . w n l w

V

til

v. ;

.

/•....,

_______

p ro m jjtly t e t h . M

m l

.

ta n k *.

offa lia s»

'

K%
tfCTÌW
JwWiìff

it i * *
TO
1»« »

Bearetary of tba Treasury

9 «*

and « I th a fria a iiry Daparfcaant, Washington.

W m k im

in a tlta tlo n a

say su|

Alt «ubecriptlona for ancona! ©f cuetamara, Imi ©»ly Ih© Badami Haaarya banka asi
tha *£ra«aory Oapartsaant ara anthorlnad t© M t «a a f f i a t a i «sanala«*

Othora i t e

banklng in a l i lu t i casa «111 « a l ho poxalttod l a « a la r aubaoriptiona axcapt fa r thtir
s m aooount.

Gaah «ab aerip tlon a fr a » banka and t r u s t coap&ale© f o r t ha i r

om

aooouat « i l i ho reooirod without dopoalt bai « i l i 9« r© stric io d l a ««ali anta la &a
aaount noi axaaadlng ea#«*half o f in a combinai c a p ita i and surplus o f tha «uteriMi
baak o r t r u s t aa&pany*

Qash su b scrip tien a fresa a l l ©tfcars

paymant a f 10 pareant o f tha anatro! o f banda appliad f o r i

m ot

ha aeooapanlefi %

Tha Soaratary of tba

Treaaury raaorraa tha r ig h i t o dio«« tha hook« aa to any o r a l l «obaariplions or
| » ala«««» o f aubaerip tie n e a l any l i m o without netto© .
8.

1fca Soaratary o f tha Traaaury ra a a rta a là # r ig h i l o r o ja a l any aubaeriptloi

/ -firn «boia or la p a n » lo a l l o ! l a «a tha» th a
■Ha
| | a l l o t t a t a l a f u l l apoa ap p licatio n « fo r

m m m t

m m X X or

o f bomds appliad fo r , lo sala

«nounts and l o

m ùm

raducad allot^

«anta apoa, or lo r a jo e t , ap p lica!Io n a f o r la rg a r ©menata, o r lo «dopi aay or a ll c|
;g l s a l i aothoda or sttch othor aothoda o f a l l o t t a s i and c l a s s i f i c a i ion o f allotaonta ai
a h a ll ha daaaad hy M a lo ho l a tha pahllo In to r o a t; «ad hi a a o tlo a la aay or all a
,114080 roopaole t e l i , ho fin a l*
ip m t

o f «hioh rraaaury Hata a o f

S u b je ct l o thooo ro so rv atlo n s, sub s c rip t ione in pa«
B o rio »

9*1938 ara toaftorod «111 ho a l l o t t a i in f»M

, lll o t a a n t notte©« «111 ha sani ©ut proaptly s p ® allo tm en t, and Ih# haaia of Ilo
a H ot man i « i l i ha p u b lioly aanouaead*
i?*

1*

r

$ o « ?

B aca ta ! a l par and aoomad in la r a a t , i f any, f o r banda a l l a l t ad «a o&fifc ®tt*

sub s c r ip t ion a au si ha
a lletm a n t.

l a orary

m ào
oooo

o r eomplotad on o r bafor# Soptambar 1 5 , 1958, or

co

Idi«

ah ara payamnl 1« n oi a# compiala#, tha payaasnt witb «PP11*

oation up to 10 p a r o d i o f th a «taount o f banda appliad f o r a h a l l , upon daelaratioc
andò hy tha S acretary o f tha froaaury l a h la d la e r a tio a , ha fo r fa lta d t© tha ttella^
Statoa*

t e r q n a llflo d dapoaltary «111 ha paiod tlad t o aako payaant hy eradlt for

m

tbs bonds bo bo redeemed will bo determined by snob method U asy bo prescribe J !
tbo Secretary of the Treasury.

From the dote of redemption designated in any euo]

notine, interest on the bends soiled for redemption efcall cease.

j

8* The bonds tell be exempt, both os to principal end interest, free ell td
ties nee or hsrooftsr imposed by Idle united Stetes, «ay Stote, or «ay of the potJ
sosslono of tbo United Stete«, or by any looei taxing authority, except (a) end
or lnhoritanee taxes, or gift taxes, and (b) graduated additional incaae taxes,
oooraonly known as surtaxes, end excuse-profits and war-profits taxes, nos or herd
after Imposed by tbs United States, upon tbs incoa* or profits of individuals,
partnerships, osseelattone, or corporations,

tbs interest on an amount of heeds I

authorised by the Second Liberty Bond let, approved Septesfcer id, lilt, as aneado
tbs principal of which dqps not exeeed In t e aigrette $3,000, owned by any indij
ual, partnership, asseslation, or corporation, «ball be exempt from the taxes pro!
; Tided for I» clause (b) above.
3S5K5

8.* The bonds will be acceptable to seouro deposite of publie moneys, hut wUl|

lit

*

sot beer tie eirsulation privilege and will not bo entitled to any Privilegs of

V; conversion«

ipHHB

^HP ’

'

V

Æ

4» Bearer bonds with interest coupons attaehed, and bonds registered as to
prineipal and Interost, will be issued In denominations of $90, $100, $900, 11*00]
$9,000, #10,000 and $100,000.

Provi»ion will he made for the interchange of bonÄj

; of different denominations and of eoupom and registered bonds, and for the trans| fsr of registered bonds, under iules and regulations proscribed by the Secretary
of the treasury.
$» The bonds will be eubjeet to tbs general regulations of the Treasury D«partent, now or hereafter prescribed, governing United States bonds.
ìli. suBBOBimcsf aim à x s x f m m
1. Subscriptions will be rsosived at tbs Fsdsral f&tserve bate and branche«

j

p

wnsm &*awb or

t-i/8-pmcmr mumm m m or ìtao-sa
Dated «ad hearing interest firn Septeaber 15, 1938

tvsauBut Af «

« «

©r «n

obito i w
@ m » l

Da« Septeaber 10, 1952

at par a» achwsd ihteto? «

m j

15, 195©

Interest payafele March 15 end Sapteafcsr 15

1908
Departaient C lreu lar 5«» 595

H W I M M M m ,
O ff!e« o f th è Seeretarjr,
Washington, Septester 8, 1

ru b ile Bebt S e rrin e
X.
____

O T T O ® ©r M »

m a y , purenant te thè authority of thè Seeond

;J|j
¡y©r«d ©eptieih^r 2 4 , 1919, «« amended, invite« «mbseiiptiOB«

Boadiof 1950-8®

fé» wxm

reabouts, «ritfc thè ilght resented te ite
se thè offering by «a assonni «affleieat to
eh Treasury Hot«« ©f Serie» M 9 8 8 , naturisi
In payeest «ad acoepted*

xx* Mussinoli or boto
«111 he dated Septenber 1 5 , 1 9 5 8 , end «111 bear in te re « !

trm

t

date e t thè ra te o f 8-1/B per cent p er annusa, pay&ble «emiannually m mroh 15 oxà
$«pte«b«r 15 1» eaeh y«ar n a t i i thè p rin e ip a l aaount benone« payable*

f é » f «***

nature Septenber 1 8 , 1958, bnt «ey be redeened e t thè optim i o f th è Dnited Stat**|
osi end a f t e r Septenber 1 5, 1 9 5 0 , in «hole o r in p a r t, a t par «ad aoerued intere»^
oe «ay in t e r e s t day o r day«,

on

4 isonth«’ n o ti« « o f redeapticm given in «uefc «*

a s th « Seeretary oftfce fre a«ary « h a ll p rescrib e*

In case o f p a r ila ! red atti® 8

* i ~

The r ig h t i s m t m d to c lo se the hooks os to oar or o i l subscriptions
o r c la s s e s o f su b serip tio n s a t any time without n o tic e , e it h e r fo r the
f r e e 1 0 7 hand« o r the Treasury n otes and w ith resp ect to the cash offering
e r with resp ect to the exchange o ffe r in g o f e it h e r .

Su b ject to the re serra­

tio n s s e t fo r th in the e f f i o i a l c ir c u la r s f a l l cash su b scrip tio n s w ill be iscsiwsd su b je c t to allotm ent and exchange su b scrip tio n s w ill bo a llo tte d in full
Payment f o r any bonds o r »©too a llo t t e d on

m äh

su b scrip tio n s must be

»ade o r completed cm o r boforo September 16* 1938* or on l a t e r allotm ent.
Treasury n otes o f S e rie s 2-1938* maturing December IS * 1938* with fin a l
coupon duo December I S , 1938. a tta ch ed , w ill bo accepted a t par in payment
f o r any bonds o r notes subscribed f o r and a llo t t e d .

I f suOh maturing notes

are tendered fo r treasu ry boade* accrued in te r e s t oa the surrendered notes
from June IS to September IS * 1938* (about $ 3 .1 4 per $ 1 .0 0 0 ) w ill be paid
follow ing t h e ir acceptance.

I f such maturing n otes are tendered fo r frsamury

n otes* In te r e s t oa the surrendered notes w ill b# cred ited from June IS to
September IS * 1938* in t e r e s t w ill b s charged fo r the seme period on the not#*
issu ed , and the d iffe re n c e (about 31 cen ts per $ 1 *0 0 0 ) w ill b s paid followiag
acceptance o f the n o te s.
Treasury notes o f S e r ie s 2—1938* maturing December IS * 1938, are
outstanding in the amount of 1 * 3 3 ,4 6 0 ,8 0 0 .

fh a o ffe r in g no* mode *111 *•

tbo only opportunity afforded the holdere o f thooo maturing note» to eiciu««
thorn f o r othor In tere st-h o a rIn g o h llg a tio n e o f the United S ta te s .
9 m t e x ts o f the e f f i o i a l c ir c u la r s fo llo w :

- 3 —

pursuant io Department Circular is* SÜ, dated June 6, 1938.

They aro Iteti*

«ml la all raspeóla «iti such molos, with which they will ho freely inter­
changeable* She metes are dated Jams 15, 1938f assi hear interest from Hat
date at the rate of 1-1/8 percent per asmen payable semiannually. they ein
matare June 1$, 1943, and will met he subject to wall far redemption tafo»
maturity*

they ere Issued in hearer fora only, with interest coupons aUaohsdj

in the denominations of $100, $800, $1,000, $8,000, $10,000 end $100,000*
the treasury heads and the treasury note« will he aooorded the «am»
exemptions from taxation ms are accorded ether issues ef treasury heads asá
treasury notas, respectively, new outstanding,

these provisions are specifi-

©ally set forth in the official circulars issued today*
Subscriptions will he received at the federal leserve haste and branches,
and at the treasury tepcrtmeat* Washington.

Banking Institutions generally

may submit subscriptions fer accoste ef customers, hut only the foderai Be*
serve basks and the treasury Department are authorised to act as official
agencies.

Dash subscriptions from hanks tel trust scapami** for either i«w*

for their orna account will b# rsceived without deposit hut will b# restrieted
in each case and for each offering to an amount not axeaa&isig one-half of IB*
combined capital and surplus of the subscribing hank or trust company.

Osib

subscriptions from all ethers must hs accompanied by 10 perctet sf the «««»1
ef bonds or nets* applied far.

Sxehange subscriptions for either bonds or

notes should h# accompanied by a lite face amount sf 1-1/4 percent freeway
nets* ef teles 3-1938 tendered in payment, to which final coupon dated
December 18, 1938 should be attached.

fSUSBST ESEASfMEW

watra u a , Momnm amar
TWm*n

9/7/38

F m t Sarria«
Se.

I i i IhI h I

Sscretary «f Di» frsasury Üorgsnth&u 1« tod&y ©ffsring for subscription,
thrcmgh tho Fsdsral Hoserve banks, $400,000«OCX)» or thersaboets, of 12-14 ysar
2-1/2 percsnt freasury bonds of 1950-52, at par and acerrad intorest, and an
additional $300,000,000, or thsrsabonts, of 1-1/8 psreeat fre&sory ratos of
Sarios A-1343, dra Jora 15, 1943, at par asá aocrrad interost fro» Jaso 15,
1933.

At tho ««ara tira, tho holdors of 1-1/4 poreoat freasuxy ratos of

Serios 2*1933, atetarlas December 1$, 1933, aro offorod tho privilego of oxchanging such atetarlas ratos either for tho Treasury bonds or tías ffeas&ry
ratos, tho exehange to be maée par for par olth an adjratraat of acerrad interost as of Septeabor 13, 1933, and to tho sxtent tho exehaage privilege is
avalloá of, tho offering of boads or of aotoo say be incroasod.
fho 2-1/2 poreoat fteasary boads of 1930-52 ara offorod for eash, and
ia exchango for freasnry ratos «atarlas Boeoabor 15, 1933, will be datod
Septombor 15, 1933, aad will toar interost fren that dato at tho rato of M / 2
poreoat por aaaa® peyable seraiaanually.
but may bo re&eerad at tho óptica
15, 1950.

fhoy will ratero Soptombor 15, 1932,

of tho United States oa aad after Soptoatsr

The boads will bo torrad la two forra i boarer boads, wlth latero**

eoupoas at tachad, aad boads regtstered both as to priaolpal aad Interost; botb
formo will bo issuod ia doranlaatioas of $50, $100, $500, $1,000, $5,000,
$10,000 aad $100,000.
Das freasury ratas, aleo offorod for eash aad ia exohaage for froasaxy
notos raterías Oocombor 15, 1933, will bo aa addition to and will for» o
part of tho torios of 1-1/3 poreoat Trsasery ratos of Serlos A-1943, Issaod

HíiASUKr dspaioti&t
wmmmn
Hsusis5t u c m i m m z m & i m s,
fyiday, Soptaaher 9. 1938.
9/8/38.

for

£**8« Service

Secretary of the Treasury Morgenthau announeed last nigbt that ti»
subscription books for the ettrrent offering of £»1/8 pereent Treasury Bonde
of 1930-08 and of 1-1/8 pereent Treasury Botos of Soria• 4-1945 alosad at ti»
aloso of buetnees Thursday, Soptoabor 8» for the reeeipt of easfe subscription,.
Oash subseriptions for either issuo oddrossod to o Federal Beserve
bank or braneh, or to the Treasury Departasnt, and placed in tbe aail befar»
18 o*dock jaidnight, Thursday, September 8, will be considerad so having
besa «atorad bofo re tbe dioso of tbe subscription books.
The subscription books for botb lasaos will oloso at the aloa» of
bus inese tonigbt , Soptoabor 9t for the resol pt of subsarlptions ia psyasat
of wbieh Treasury Botos of Barloo 3-1958, aaturing Besoaber 19, 1938, are
teadered.
Sxchange subscription» for olthor issuo oddrossod to a federal Re­
serve bank or braneh, or to the Treasury Departaant, sad placed in the malí
before 18 o9olook aidnight, tonight, Soptoabor 9, will be considerad as having boon enterad befara tbs aloso of the subscription books.
Announo«m«nt of the amonat of aash subseriptions and the bases
of dlotaent will probably be nado lato on Saturd&y, Septsaber 10

TREASURY DEPARTMENT
Washington
IDR RELEASE, MORNING- NEWSPAPERS,
Thursday, September 8, 1938>
9-7-38

Press Service
No. 14-49

Secretary of the Treasury Morgenthau is today offering for subscription,
through the Eederal Reserve banks, $400,000,000, or thereabouts, of 12-14 year
2—1/S percent Treasury bonds of 1950-52, at par and accrued interest, and an
additional $300,000,000, or thereabouts, of 1-1/8 percent Treasury notes of
Series A-1943, due June 15, 1943, at par and accrued interest from June 15, 1938.
At the same time, the holders of 1-1/4 percent Treasury notes of Series E-1938,
maturing December 15, 1938, are offered the privilege of exchanging such maturing
notes either for the Treasury bonds or the Treasury notes, the exchange to be made
par for par with an adjustment of accrued interest as of September 15, 1938, and
to the extent the exchange privilege is availed of, the offering of bonds or of
notes may be increased.
The 2-1/2 percent Treasury bonds of 1950-52 now offered for cash, and in
exchange for Treasury notes maturing December 15, 1938, will be dated September 15,
1938, and will bear interest from that date at the rate of 2-1/2 percent per annum
payable semiannually.

They will mature September 15, 1952, but may be redeemed

at the option of the United States on and after September 15, 1950.

The bonds

will be issued in two forms! bearer bonds, with interest coupons attached, and
bond? registered both as to principal and interest; both forms will be issued in
denominations of $50, $100* $500, $1,000, $5,000, $10,000 and $100,000.
The Treasury notes, also offered for cash and in exchange for Treasury notes
maturing December 15, 1938, will be an addition to and will form a part of the
series of 1-1/8 percent Treasury notes of Series A-1943, issued pursuant to De­
partment Circular No. 585, dated June 6, 1938.

They are identical in all

respects with such notes, with which they will he freely interchangeable,

The

notes are dated June 15, 1938, and hear interest from that date at the rate of
l-l/8 percent per annum payable semiannually.

They will mature June 15, 1943,

and will not he subject to call for redemption before maturity.

They are issued

in bearer form only, with interest coupons attached, in the denominations of $100,
$500, $1,000, $5,000, $10,000 and $100,000.
The Treasury bonds and the Treasury notes will be accorded the same exemp­
tions from taxation as are accorded other issues of Treasury bonds and Treasury
notes, respectively, now outstanding.

These provisions are specifically set forth

in the official circulars issued today*
Subscriptions will be received at the Federal Reserve banks and branches,
and at the Treasury Department, Washington.

Banking institutions generally may

submit subscriptions for account of customers, but only the Federal Reserve banks
and the Treasury Department are authorized to act as official agencies.

Cash

subscriptions from banks and trust companies for either issue for their own
account will be received without deposit but will be restricted in each case and
for each offering to an amount not exceeding one-half of the combined capital and
surplus of the subscribing bank or trust company.

Cash subscriptions from all

others must be accompanied by 10 percent of the amount of bonds or notes applied
for* Exchange subscriptions for either bonds or notes should be accompanied by
a like face amount of 1-1/4 percent Treasury notes of Series E-1938 tendered in
payment, to which final coupon dated December 15, 1938 should be attached.
The right is reserved to close the books as to any or all subscriptions
or classes of subscriptions at any time without notice, either for the Treasury
bonds or the Treasury notes and with respect to the cash offering or with respect
to the exchange offering of either.

Subject to the reservations set forth in

toe official circulars, all cash subscriptions will be received subject to

- 3 -

allotment and exchange subscriptions will be allotted in full.
Payment for any bonds or notes allotted on cash subscriptions must be made
or completed on or before September 15, 1938, or on later allotment.

Treasury

notes of Series E-1938, maturing December 15, 1938, with final coupon due
December 15, 1938, attached, will be accepted at par in payment for any bonds or
notes subscribed for and allotted.

If such maturing notes are tendered for

Treasury bonds, accrued interest on the surrendered notes from June 15 to
September 15, 1938, (about $3,14 per $1,000) will be paid following their accept­
ance,

If such maturing notes are tendered for Treasury notes, interest on the

surrendered notes will be credited from June 15 to September 15, 1938, interest
will be charged for the same period on the notes issued, and the difference
(about 31 cents per $1,000) will be paid following acceptance of the notes#
Treasury notes of Series E-1938, maturing
standing in the amount of $433,460,900,

December 15, 1938, are now out­

The offering now made will be the only

opportunity afforded the holders of these maturing notes to exchange than for
other interest-bearing obligations of the United States,
The texts of the official circulars follow:

UNITED STATES OP AMERICA
3-1/2 PERCENT TREASURY BONDS OP 1950-52
Dated and Bearing interest from September 15, 1938

Due September 15, 1952

REDEEMABLE AT THE OPTION OP THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND
APTER SEPTEMBER 15, 1950
Interest payable March 15 and September 15

1938
Department Circular No. 593
____

”

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 8, 193*

Public Debt Service
I.
1.

OFFERING- OP BONDS

The Secretary of the Treasury, pursuant to the authority of the Second

Liberty Bond Act, approved September 24, 1917, as amended, invites subscriptions,
at par and accrued interest, from the people of the United States for 2-1/2 per
cent bonds of the United States, designated Treasury Bonds of 1950-52.

The amount

of the offering is $400,000,000, or thereabouts, with the right reserved to the
Secretary of the Treasury to increase the offering by an amount sufficient to
accept all subscriptions for which Treasury notes of Series E-1938, maturing
December 15, 1938, are tendered in payment and accepted.
II,
1.

DESCRIPTION OP BONDS

The bonds will be dated September 15, 1938, and will bear interest from

that date at the rate of 2-1/2 percent per annum, payable semiannually on March 15
and September 15 in each year until the principal amount becomes payable.

They wil.

mature September 15, 1952, but may be redeemed at the option of the United States
on and after September 15, 1950, in whole or in part, at par and accrued interest^
on any interest day or days, on 4 months1 notice of redemption given in such manner
Q-s the Secretary of the Treasury shall prescribe.

In case of partial redemption

the bonds to be redeemed will be determined by such method as may be prescribed by
the Secretary of the Treasury.

Prom the date of redemption designated in any such

notice, interest on the bonds called for redemption shall cease.

2,

The bonds shall he exempt, both as to principal and interest, from all

taxation 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, except (a)
estate or inheritance taxes, or gift taxes, and (b) graduated additional income
taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now
or hereafter imposed by the United States, upon the income or profits of individ­
uals, partnerships, associations, or corporations.

The interest on an amount of

bonds authorized by the Second Liberty Bond Act, approved September 24, 1917, as
amended, the principal of which does not exceed in the aggregate $5,000, owned by
any individual, partnership, association, or corporation, shall be exempt from
the taxes provided for in clause (b) above.
3,

The bonds will be acceptable to secure deposits of public moneys, but will

not bear the circulation privilege and will not be entitled to any privilege of
conversion.
4.

Bearer bonds with interest coupons attached, and bonds registered as to

principal and interest, will be issued in denominations of $50, $100, $500, $1,000^
$5,000, $10,000 and $100,000.

Provision will be made for the interchange of bonds

of different denominations and of coupon and registered bonds, and for the trans­
fer of registered bonds, under rules and regulations prescribed by the Secretary
of the Treasury.
5.

The bonds will be subject to the general regulations of the Treasury De­

partment, now or hereafter prescribed, governing United States bonds.
III.
1.

SUBSCRIPTION AND ALLOTMENT.

Subscriptions will be received at the Eederal Reserve banks and branches

and at the Treasury Department, Washington.

Banking institutions generally may

submit subscriptions for account of customers, but only the Federal Reserve banks
^d the Treasury Department are authorized to act as official agencies.

Others

~ 3 ~

than hanking institutions will not he permitted to enter subscriptions except for
their own account.

Cash subscriptions from hanks and trust companies for their

own account will he received without deposit hut will he restricted in each case
to an amount not exceeding one-half of the combined capital and surplus of the
subscribing hank or trust company#

Cash subscriptions from all others must he

accompanied hy payment of 10 percent of the amount of bonds applied for.

The

Secretary of the Treasury reserves the right to close the hooks as to any or all
subscriptions or classes of subscriptions at any time without notice#
2#

The Secretary of the Treasury reserves the right to reject any subscrip­

tion, in whole or in part, to allot less than the amount of bonds applied for, to
make allotments in full upon applications for smaller amounts and to make reduced
allotments upon, or to reject, applications for larger amounts, or to adopt any
or all of said methods or such other methods of allotment and classification of
allotments as shall be deemed by him to be in the public interest; and his action
in any or all of these respects shall be final#

Subject to these reservations,

subscriptions in payment of which Treasury Notes of Series E-1938 are tendered will
"be allotted in full.

Allotment notices will be sent out promptly upon allotment,

and the basis of the allotment will be publicly announced.
IV.
1#

PAYMENT

Payment at par and accrued interest, if any, for bonds allotted on cash

subscriptions must be made or completed on or before September 15, 1938, or on
later allotment#

In every case where payment is not so completed, the payment

with application up to 10 percent of the amount of bonds applied for shall, upon
declaration made hy the Secretary of the Treasury in his discretion, be forfeited
to the United States.

Any qualified depositary will be permitted to make payment

by credit for bonds 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

- 4 -

by the Federal Reserve bank: of its district.

Treasury Notes of Series E-1938,

naturing December 15, 1938, with coupon dated December 15, 1938, attached, will
be accepted at par in payment for any bonds subscribed for and allotted, and
should accompany the subscription.

Accrued interest from'June 15, 1938, to

September 15, 1938, on the maturing notes ($3.142076 per $1,000) will be paid fol­
lowing acceptance of the notes.
V.

GENERAL PROVISIONS

1. As fiscal agents of the United States, Federal Reserve banks are author­
ized and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal Re­
serve banks of the respective districts, to issue allotment notices, to receive
payment for bonds allotted, to make delivery of bonds on full^paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
bonds.
2.

The Secretary of the Treasury may at any time, or from time to time, pre­

scribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve banks,

HENRY MORGENTHAU, JR.,
Secretary of the Treasury.

UNITED STATES OF AMERICA
1-1/8 PERCENT TREASURY ROTES OF SERIES A-1943
Dated and bearing interest iron June 15, 1938

Due June 15, 1943

Interest p a y a b l e June 15 and December 15
ADDITIONAL ISSUE

1938
Department Circular No. 594

TREASURY DEPARTMENT,
Office of the Secretary,
Washington, September 8,1938.

Public Debt Service
i|
1.

O FFERIN G OF NOTES

The Secretary of the Treasury, pursuant to the authority of the Second

Liberty Bond Act, approved September 24, 1917, as amended, invites subscriptions,
at par and accrued interest, from the people of the United States for 1-1/8 per­
cent notes of the United States, designated Treasury Notes of Series A-1943. The
amount of the offering is $300,000,000, or thereabouts, with the right reserved
to the Secretary of the Treasury to increase the offering by an amount sufficient
to accept all subscriptions for which Treasury Notes of Series E-1938, maturing
December 15, 1938, are tendered in payment and accepted.
II.
1.

DESCRIPTION OF NOTES

The notes now offered will be an addition to and will form a part of

the series of 1—l/8 percent Treasury Notes of Series A-1943 issued pursuant to
Department Circular No. 585, dated June 6, 1938, will be freely interchangeable
therewith, are identical in all respects therewith, and are described in the
following quotation from Department Circular No. 585;
wl. The notes will be dated June 15, 1938, and will bear interest
from that date at the ra,te of 1-1/8 percent per annum, payable semi­
annually on December 15, 1938, and thereafter on June 15 and December
15 in each year until the principal amount becomes payable. They will
nature June 15, 1943, and will not be subject to call for redemption
prior to maturity.

2
M2* The notes shall he exempt, both as to principal and interest,
from all taxation (except estate or inheritance taxes, or gift 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.
»3* 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 pay­
able at the maturity of the notes.
The notes will be acceptable to secure deposits of public
moneys, but will not bear the circulation privilege.
”5. 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 be issued in registered form."
III.
1.

SUBSCRIPTION AMD ALLOTMENT

Subscriptions will be received at the Federal Reserve banks and branches

and at the Treasury Department, Washington.

Banking institutions generally may

submit subscriptions for account of customers, but only the Federal Reserve banks
and the Treasury Department are authorized to act as official agencies.

Others

than banking institutions will not be permitted to enter subscriptions except
for their own account.

Cash subscriptions from banks and trust companies for

their own account will be received without deposit but will bo restricted in
each case to an amount not exceeding one—half of the combined capital and surplus
of the subscribing bank or trust company.

Cash subscriptions from all others

must be accompanied by payment of 10 percent of the amount of notes applied for.
The Secretary of the Treasury reserves the right to close the books as to any or
all subscriptions or classes of subscriptions at any time without notice*
2.

The Secrotary of the Treasury reserves the right to reject any subscrip­

tion, in whole or in part, to allot less than the amount of notes applied for,
to make allotments in full upon applications for smaller amounts and to make
reduced allotments upon, or to reject, applications for larger amounts, or to
adopt any or all of said methods or such other methods of allotment and classi­
fication of allotments as shall be deemed by him to be in the public interest;

- 3and his action in any or all of these respects shall he final.

Subject to

these reservations, subscriptions in payment of which Treasury Notes of Series
E-1938 are tendered will he allotted in full.

Allotment notices will he sent

out promptly upon allotment, and the basis of the allotment will he publicly
announced*
17.
1.

PAYMENT

Payment at par and accrued interest from June 15, 1938, for notes

allotted on cash subscriptions must he made or completed on or before September
15, 1938, or on later allotment.

In every case where payment is not so completed,

the payment with application up to 10 percent of the amount of notes applied for
shall, upon declaration made by the Secretary of the Treasury in his discretion,
be forfeited to the United States.

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.

Treasury Notes

of Series E-1938, maturing December 15, 1938, with coupon dated December 15,1938,
attached, will be

accepted at par in payment for any notes subscribed for and

allotted, and should accompany the subscription*

Accrued interest from June 15,

1938, to September 15, 1938, on the maturing notes will be credited to sub­
scribers, and interest for the same period on the new notes, which will be de­
livered with coupon dated December 15, 1938, attached, will be charged to sub­
scribers.

The difference ($0.314208 per $1,000) will be paid following acceptance

of the notes*
V.

GENERAL P R O V IS IO N S
.

1.

,

:

As fiscal agents of the United States, Federal Reserve banks are

authorized and requested to receive subscriptions, to make allotments on the

basis and up to the amounts indicated by the Secretary of tho Treasury to the
Federal Reserve "banks of the respective districts, to issue allotment notices,
to receive payment for notes allotted, to make delivery of notes on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery
of the definitive notes.
2.

The Secretary of the Treasury may at any time, or from time to tine*

prescribe supplemental or amendatory rules and regulations governing the offer­
ing, which will be communicated promptly to the Federal Reserve banks.

HENRY MORG-ENTHA.U, JR.,
Secretary of the Treasury.

PRESS RELEASE

OIl© Commissioner of Customs today announced that preliminary
reports show imports of 755,936 squares of red cedar shingles from
Canada, under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to Sept
These importations represen

1938.
srcent of the quota

established in Executive Order No* 7946, of August 9, 1938, which
limits importations of this commodity to 864,881 squares during
the last six months of the calendar year 1938*

OFFICE OF THE COMMISSIONER OF CUSTOMS

Sta

MR. GASTON
(Attention of Mr. Schwarz, Room 889, Treasury Building)
FROM THE COMMISSIONER OF CUSTOMS:
There is attached for immediate release a tabulation showing
imports of red cedar shingles from Canada, under the quota provisions
of the Canadian Trade Agreement, during the period July 1 to
September 7, 1938.
When the release has been mimeographed, please have 145 copies
forwarded to Miss Henry, Room 415, Washington Building.

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Thursday, September 8, 1938.

Press Service
No. 14-50

The Commissioner of Customs today announced that preliminary reports
show imports of 755,936 squares of red cedar shingles from Canada, under the
quota provisions of the Canadian Trade Agreement, during the period July 1
to September 7, 1938.
These importations represent 87.4 percent of the quota established in
Executive Order No. 7946, of August 9, 1938, which limits importations of
this commodity to 864,881 squares during the last six months of the calendar
year 1938.

— oOo—

- 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 12« 1958

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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

September 14, 1958
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.

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

¥0 loss from, the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, for the piirposes 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.

« HRgfhrflPAffgMESüffr EAiigHt f

FOR RELEASE, MORNING PAPERS
Friday, September 9, 1938«
lit

TREASURY DEPART!«!?

ÆgAgî i ^ ^ 3 f c jà.l.O :XXXXXTTXTYr r r r

til
The Secretary of the Treasury gives notice that tenders tare
invited for Treasury bills to the amount of $ 1QQ.QOQ.OOP , or thereahoul^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 Barks,

or the branches thereof, up to two o 5clock p. m., Eastern Standard time,
on Monday, September 12,1958 .

Tenders will not be received at the

Treasury Department, Washington.
The Treasury bills will be dated September 14,1958 , and will
3|E
mature on December 14,1958 t 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-COTTSudered*
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 hot be used»-

panied by a deposit of 10 per cent of the face amount of Treasury

TREASURY DEPARTMENT

FOR RELEASE, MORNING PAPERS,
Friday, September 9, 1938.

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-doy bills; and will bo sold on a discount basis to the highest bidders*
Tenders will be received at the Federal Reserve Ranks, or the branches thereof,
up to two o*clock p.n., Eastern Standard tine, on Monday, September 12* 1938.
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated September 14, 1938, and will nature on
December 14, 1938, 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 denomi­

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 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 bonk or trust company.
Immediately after the closing hour for receipt of tenders on September 12,
1938, all tenders received at the Federal Reserve Banks or branches thereof up to
he closing hour will be opened and public announcement of the acceptable prices
Wlll follow as soon as possible thereafter, probably on the following morning*

-

2

-

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 "bo final*

Those submitting tenders will he

advised of the acceptance or rejection theroof.

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 September 14, 1938.
The Treasury hills will he exempt, a,s 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.

(Attention is invited to Treasury

Decision 4550, ruling that Treasury hills are not cxer.pt from the gift tax*)

Ho

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 hy the United States or any of its possessions.
Treasury Department Circular Ho. 418, as amended, and this notice proscribe
the terms of the Treasury hills and govern the conditions of their issue*

Copies

of the circular may ho obtained from any Federal Reserve Bank or branch thereof*

-’>-c0o-*~

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•gfejeet*

Very txtaly year«»

(Signed) H. Morgenihan, JrSecretory of "the Treeeery♦

Sooorehie Sterri* Shepherd
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For Monday a m ’s

Senator Morgenthau today ma d e public the
following letter to Senator Morris Sheppard as Chairman of
the Special Committee to Investigate Campaign Sxpenditurss
of the Senate :

TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING* NEWSPAPERS,
Monday, September 12, 1938,
9/10/38.

Press Service
No. 14-51

Secretary Morgenthau today made public the following letter
to Senator Morris Sheppard as Chairman of the Special Committee to
Investigate Campaign Expenditures of the Senates

TREASURY DEPARTMENT
Washington, D. C.
Office of the Secretary
0
0
P
Y

September 9, 1938.

My dear Senator-:
Noticing on my return last week from vacation that during my
absence questions had been raised before your committee as to political
activities by Treasury employees, X wrote to you sending you copies of
the regulations on this subject that I have issued for the guidance of
all employees of this Department.
The subject is, as you know, one in which I have taken a great
deal of interest ever since I assumed my present duties.

I have been

anxious not only that all employees of this Department should abide both
by the letter and the spirit of the law on this subject, but that they
should refrain from taking any position or committing any acts whose
propriety could be questioned in view of their responsibilities as
revenue-collecting agents of the Government.
Investigations which I caused to be made in 1934 revealed out­
right violations of the law with respect to solicitation of political
contributions, and as a result several officers were required to resign
and disciplinary action was taken in other cases.

The regulations which

were issued following the first of these developments demanded strict
obedience to the law as it was understood in the Treasury Department
and also established regulations for Treasury employees more exacting
in a number of particulars than the statutes, as you will no doubt have
observed on reading them.

Reports in the newspapers, however, lead me to "believe that
the position that you have taken on one natter— that of political con­
tributions— differs from that taken by the Treasury Department.

The

supplement of September 10, 1934, to Department Circular No. 518 of
August 2, 1934, contains the following:
’’The instructions contained in said circular should not be
construed:
* # *
"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."
X am led by reports in the newspapers to believe that your
position is that the law forbids any political contributions whatever
by Federal employees, whether made under these voluntary conditions or
not, and that in arriving at that position you have been guided by the
provisions of Sections 208 and 211 of Title 18 of the U. S. Code, which
forbid, respectively, the receiving by a Federal officer or candidate
for Federal office of political contributions from Federal employees,
and the giving by Federal employees of political contributions to a
Federal officer or candidate for office.
In taking the position that neither of these sections is in­
tended to prevent the making of voluntary contributions to party cam­
paign funds by Treasury employees, we have been guided by decisions
of Attorneys G-eneral in prior Administrations.

Both sections are de­

rived from provisions of the same import in the Act of January 16, 1883,

3

(22 Stat. 403 , 406) which was construed by the Attorney General in
1896 (21 Op. Atty.Gon. 298).

The Attorney General stated (at page

299) :
"It is well settled that the intention of this
act was not to forbid voluntary contributions for
political purposes by persons in the employ of the
Government, but to protect such persons from solici­
tation or coercion with respect to such contributions.
Knowing the difficulty of detecting the actual opera­
tion of means and influences whose employment had
become a. public evil, Congress absolutely prohibited
the solicitation or receipt of political contribu­
tions by all persons in the Government service in any
place or in any way, and forbade such solicitation
or receipt by any person in any room or building
occupied in the discharge of official duties. All
who are in the Government service are thus protected
against the possibility of actual coercion and from
that of the coercion implied in the relation of the
person soliciting or receiving to the Government or
implied in solicitation or receipt in a public office;
but Congress did not attempt to prohibit solicitation
by or payment to persons not in the Government ser­
vice otherwise than in Government offices."
The position of the Attorney General in that opinion was reiterated
with approval in (1902) 24 Op. Atty. Gen. 133,135.
We have been unable to find in the regulations of the Civil
Service Commission with respect to employees in the classified ser­
vice any further guidance on this question of voluntary contributions.
X remain, as I have always been, determined that the conduct
of Treasury employees shall be above reproach in any respect as to which
I have the right to act under the law.

I am anxious, therefore, to

have all author!tative guidance possible, and I would be glad to have
you indicate any respects in which you think the limits of political
activity permissible to Treasury employees have been transcended.

4

-

In addition, X would ask:
(1)

Is it your view that the Treasury regulations, copies
of which have been sent to you, permit acts which are
repugnant to the letter or spirit of the law,

(2)

Do you contend that it is a violation of the law for
a Federal employee to make a voluntary contribution
to the campaign fund or to the general funds of a
political party,

(3)

Is it your position that it is a violation of the law
for such an employee to make a voluntary contribution
to a fund which is to be used for the purpose of ad­
vocating a particular candidate for Federal office in
a primary campaign?

I shall greatly appreciate hearing further from you on this
subject.
Very truly yours,
(Sgd) H E W MORGENTEA.U, JR.
Secretary of the Treasury.
Honorable Morris Sheppard
Chairman
Special Committee to Investigate
Campaign Expenditures
United States Senate.

— 0O0—

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Friday, September 9, 1938.______
9-8-38

Press Sorvice
No. 14-51

Secretary of the Treasury Morgenthau announced last night that the
subscription hooks for the current offering of 2-1/2 percent Treasury Bonds
of 1950-52 and of 1-1/8 percent Treasury Notes of Series A-1943 closed at the
close of business Thursday, September 8, for the receipt of cash subscriptions.
Gash subscriptions for either issue addressed to a Federal Reserve
bank or branch, or to the Treasury Department, and placed in the nail before
12 o’clock midnight, Thursday, September 8, will "be considered as having been
entered before the close of the subscription books.
The subscription books for both issues will close at the close of
business tonight, September 9, for the receipt of subscriptions in payment of
which Treasury Notes of Series E-1938, maturing December 15, 1938, are tendered#
Exchange subscriptions for either issue addressed to a Federal Reserve
bank or branch, or to the Treasury Department, and placed in the mail before
12 o’clock midnight, tonight, September 9, will be considered as having been
entered before the close of the subscription books*.
Announcement of the amount of cash subscriptions and the bases of allot­
ment will probably be made late on Saturday, September 10.

— oOo—

m zm m r

i

m

k

im nm m M
?oh

HssJàss,

Sfttttid«]rt September 10, 1938*

Pro«» s o m *
(f

>

Seeretary of thè Treasury Morgenthau today ansounced thè subscript ion
figures and thè bases of allotaent for thè cash off©ring of $-1/8 peroent Treasury
Bonde of 1950-58 and of 1-1/0 percaat Treasury Hot«« of Sorto» 4-1949*
Reports reeeìved fresa thè Foderai Sooorvo basito oboe that cash sub*
«cripti on» for tbo offorisi of Tre&sury bendo aggregato #4,486,000,000.

Subscrip*j

bleso lo amounte up to end ineluding #1,000 «oro allotted is fall and thoss In
amount» orar #1,000 «oro allotted 10 pereent, but net loto th&n #1,000 ©s m y mi

oabcerlptlen «
For thè offering of Troaosry notes cash oubseriptloms aggregate
#9,051,000,000*

Subseriptlona in amounts «p te «od includisi #1,000 «ere

allotted In full and thooe in amounts over #1,000 «oro allotted 11 pereent,
bat net looo than #1,000 on any oso subscription.
Preliainary reperto of oacebaxiie onboeriptlono, in payssent of which
Treasury Meteo of Serio« 9-1938, naturisi Decomber 13, 1938, «ore tenderei,
Indicato that a onbotastial part of thè maturing noto« baro beoti cotehasged for
thè no« loaue», and that orar 90 poroost of thè exchangee aro for tbe boni«.
Far thè r dotali« ao te «uba cripii oas end allotments «ili be aimouncsd
«ben final repert« ore roeetted fro» thè Foderi Re serre bang«*

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
’
Saturday-» September 10, 1938.

•Press Service
Ho. 14-52

Secretary of the Treasury Morgenthau today announced the subscription
figures and the bases’of allotment for the cash offering of 2-1/2 percent
Treasury Bonds of 1950-52 and of 1-1/8 percent Treasury Notes of Series A-^-1943.
Reports received from the Federal Reserve banks show that cash sub­
scriptions for the offering of Treasury bonds’aggregate $4,488,000,000.

Sub­

scriptions in amounts up to and including $1,000 were allotted in full and
those in amounts over $1,000 were allotted 10 percent, but not less than $1,000
on any, one subscription.
For the offering of.Treasury notes cash subscriptions aggregate
$3,051,000,000.

Subscriptions in amounts up to and including $1,000 were

allotted in f u l l and those in amounts over $1,000 were allotted 11 percent,
but not less than $1,000 on any one subscription.
Preliminary reports of exchange subscriptions, in payment of which
Treasury Notes of Series 32-1938, maturing December 15, 1938, were tendered,
indicate that a substantial part of the maturing notes have been exchanged for
the new issues, and that over 90 percent of the exchanges aro for the bonds.
Further details as to subscriptions and allotments will be announced
when final reports are received from the Federal Reserve banks.

— oOo—

- 3 The actual direction of these researches is in the hands of
the state or local health officers where the studies are being made.
This is in line with the traditional policy of the United States
Public Health Service in its cooperation with the states*

The Ser­

vice will lend technical assistance and act as a consultant on the
studies*

In cooperation with the states, it will tabulate and

synthesize the results and give them publication in some future
year when the work has been completed*
These studies are being conducted under th^ direction of
Surgeon J. W. Mount in, and by Surgeon A. S. Rurareich and Past
Assistant Surgeon Claude D* Head, Jr*,
Detailed information on the conduct or plans for particular
studies can be obtained from the state health officers of the states
involved.

These include:

Walter M. Dickie, M.D., California Department of Public Health,
Sacramento, California.
R. L. Cleere, M.D*, Colorado State Division of Public Health,
Denver, Colorado.
A. C. Baxter, M.D., Illinois Department of Public Health,
Springfield, Illinois*
J. A. 0*Hara, M.D., Louisiana Department of Health,
New Orleans, Louisiana*
Harry P. Parker, M.D., Missouri State Board of Health,
Jefferson City, Missouri*
J. Lynn Mahaffey, M.D., New Jersey Department of Health,
Trenton, New Jersey.
Edith MacBride-Dexter, M.D., Pennsylvania Department of Health,
Harr isburg, Pennsy lvania.'

PSB:mea
9-8-38

- 8 -

being released in Washington.

^

~

' *

During the past several years, great hope has been expressed
for the reduction of pneumonia deaths through the use of serum.

Some

authorities have estimated that the total toll of pneumonia, which
now holds third place among our greatest killers, could be reduced by
5Cyf>. Under controlled conditions in several New York City hospitals,
deaths from Type I pneumonia dropped from 30$ down to 5$ through the use
of the very effective serum available for that type.
Pneumonia is not, however, caused by a single organism. There
are 32 different types of the pneumococcus, just as there are in­
numerable breeds of dogs or cows.

Effective sera are available for

Types I, II and V and the general distribution of sera for those
types is recommenied by the United States Public Health Service.
The Service recommendation is a conservative one.

Other sera have

been developed which give considerable evidence of value.
Sera for some other types, among them, VI, VII, VIII, IX
and XIV, are usually administered under carefully controlled condi­
tions and in hospital practice.

Sera for sane other types of

pneumonia are regarded as being in the experimental stage.
There is evidence in the medical reports that the incidence of
the different types varies considerably from area to area and that
similarly the types vary in their deadliness.

This problem of

type incidence is fundamental to the planning of a control program
and will be a major part of the investigations.

I*i

- fT S

Seven widely scattered states will be the scene of intensive
investigation in the treatment and spread of pneumonia, as that killer
begins to take its toll during the coming months.
The United States Public Health Service today announced the
establishment of field research projects in cooperation with state
and local health departments in New Jersey; Pennsylvania; Illinois;
St. Louis, Missouri; Denver, Colorado; New Orleans, Louisiana; and
a selected north central area in California.

The California area

extends from San Francisco to the Lake Tahoe region and provides
sampling of conditions in the coastal region, the inland valley and
the Sierra Nevada.
These investigations will cover three aspects of the pneumonia
problem, (1) the incidence of pneumonia by type, (2) the effectiveness
of different serums in reducing pneumonia mortality, and (3) investi­
gation of the effectiveness of certain chemical substances in the
treatment of pneumonia.
Funds for these studies will come from three sources; from
the regular scientific appropriation of the United States Public
Health Service, from funds appropriated for public health purposes
under Title VI of the Social Security Act, and from state and
municipal public health budgets.

More than ^300,000 will be so ex­

pended and the studies will constitute the most extensive investiga­
tion of the pneumonia problem yet undertaken.

No announcement of

the separate state expenditures or allotments for this purpose is

■ £ ‘ •«- -

•

1 1 1 1

lllllllllll

TREASURY DSPARTMEHT
(U.S. Public Health Service)
Washington
POR IMMEDIATE RELEASE,
Monday, September 12, 1938.

Press Service
Ho. 14-53

Seven widely scattered states will be the scene of intensive investi­
gation in the treatment and spread of pneumonia, as that killer begins to
take its toll during the coming months«
The United States Public Health Service today announced the establish­
ment of field research projects in cooperation with state and local health
departments in Hew Jersey; Pennsylvania; Illinois; St. Louis ■
, Missouri;Denver,
Colorado; Hew Orleans, Louisiana; and a selected north central area in
California.

The California area extends from San Francisco to the Lake Tahoe

region and provides sampling of conditions in the coastal region, the inland
valley and the Sierra Hevada.
These investigations will cover three aspects of the pneumonia problem,
(l) the incidonco of pneumonia by type, (2) the effectiveness of different
serums in reducing pneumonia mortality, and (3) investigation of the effec­
tiveness of certain chemical substances in the treatment of pneumonia.
Funds for these studies will come from three sources; from the regular
scientific appropriation of the United States Public Health Service, from
funds appropriated for public health purposes under Title VI of the Social
Security Act, and from state and municipal public health budgets.

More than

$300,000 will be so expended and the studies Will constitute the most ex­
tensive investigation of the pneumonia problem yet undertaken. Ho announcement
of the separate state expenditures or allotments for this purpose is being
released in Washington.

2
During the past several years, great hope has been expressed for
the reduction of pneumonia deaths through the use of serum.

Some author­

ities have estimated that the total, toll of pneumonia, which now holds
third place among our greatest killers, could he reduced by 50$*

Under

controlled conditions in several Hew York City hospitals, deaths from
Type I pneumonia dropped from ¡30$ down to 5$ through the use of the very
effective serum available for that type*
Pneumonia is not, however, caused by a single organism.

There are

32 different types of the pneumococcus, just as there are innumerable
breeds of dogs or cows.

Effective sera are available for Types I, II

and V and the general distribution of sera for those types is recommended
by the United States Public Health Service.
is a conservative one.

The Service recommendation

Other sera have been developed which give con­

siderable evidence of value.
Sera for some other types, among them, VI, VII, VIII, IX and XIV,
are usually administered under carefully controlled conditions and in
hospital practice*

Sera for some other types of pneumonia are regarded

as being in the experimental stage*
There is evidence in the medical reports that the incidence of the
different typos varies considerably from area to area and that similarly
the typos vary in their deadliness.

This problem of type incidence is

fundamental to the planning of a control program and will be a major part
of the investigations*
The actual direction of these researches is in the hands of the
state or local, health officers where the studies are being made.

This

-

3

-

is in lino with the traditional policy of the United States Public Health
Service in its cooperation with the states.

The Service will lend technical

assistance and act as a consultant on the studies.

In cooperation with the

states, it will tabulate and synthesize the results and give them publicertion in some future year when the work lias been completed.
These studies are being conducted under the direction of Surgeon J.W,
Mountin, and by Surgeon A. S. Rumreich and Past Assistant Surgeon Claude D.
Head, Jr.
Detailed information on the conduct or plans for particular studies
can be obtained from the state health officers of the states involved.
These include:
Walter M. Dickie, M.D., California Department of Public Health,
Sacramento, California.
R. L. Cloore, M.D., Colorado State Division of Public Health,
Denver, Colorado.
A. C. Baxter, M.D., Illinois Department of Public Health,
Springfield, Illinois.
J. A'o 0 !Eara, M.D. , Louisiana Department of Health,
Hew Orleans, Louisiana.
Harry P. Parker, M.D., Missouri State Board of Health,
Jefferson City, Missouri.
J. Lynn Mahaffey, M.D., Hew Jersey Department of Health,
Trenton, Hew Jersey.
Edith MacBride-Doxter, M.D., Pennsylvania Department of Health,
Harri sburg, Ponnsylvani a.

0O0

TREASURY DEPARTMENT
Washington
FOR RELEASE MORNING NEWSPAPERS
Thursday September 15
1938

PRESS SERVICE
No. 14-54

Marshall R. Diggs, Acting Comptroller of the Currency,
today announced the completion of the liquidation of 24
receiverships during the month of August, 1938.

This makes

a total of 1191 receiverships finally closed or restored to
solvency since the Banking Holiday of March, 1933.

Total

disbursements, including offsets allowed, to depositors and
other creditors of these 1191 receiverships, exclusive of the
42 restored to solvency, aggregated f>480 270 506 00, or an
average return of 80.52 per cent of total liabilities, while
unsecured creditors received dividends amounting to an average
of 67.32 per cent of their claims.

Dividends distributed to

creditors of all active receiverships during the month of
August, 1938, amounted

to $2 941 060 00.

Total dividends

paid and distributions to depositors of all receiverships
from March 16, 1933 to August 31, 1933, amounted to
I918 508 021 00.

- 2 -

FIRST NATIONAL BANK, HARTSELLS, ALABAMA:
This bank was placed in receivership February 16,1931.

Depositors and other creditors received, including

offsets allowed, $525 039 00, representing 88.6 per cent
of total liabilities established.

Unsecured depositors

received dividends aggregating 81.1 per cent of claims
proved.

3
FIRST NATIONAL BANK, BENTON, ILLINOIS:
This "bank was placed in receivership December 2, 1930.
Depositors and othor creditors received, including offsets
allowed, $994 308 00, representing 66.01 per cent of total
liabilities established.

Unsecured depositors received divi

dends aggregating 36.6 per cent of claims proved.

FIRST NATIONAL BANK, MENDOTA, ILLINOIS:
This bank was placed in receivership February 12, 1932.
Depositors and other creditors received, including offsets
allowed, $455 637 00, representing 92.38 per cent of total
liabilities established.

Unsecured depositors received divi

lends aggregating 91.4 per cent of claims proved.

NENDOTA NATIONAL BANK, MENDOTA, ILLINOIS:
This bank was placed in receivership February 12, 1932.
Depositors and other creditors received, including offsets
allowed, $763 598 00, representing 93.09 per cent of total
liabilities established.

Unsecured depositors received divi

dends aggregating 98.35 per cent of claims proved.

4

FIRST NATIONAL BANK, MARION, INDIANA:
This hank was formerly in conservatorship.
finally placed in receivership December 5, 1933,

It was
Depositors

and other creditors received, including offsets allowed,
$3 360 941 00, representing 103.83 per cent of total liabili­
ties established.

Unsecured depositors received dividends

aggregating 100 per cent principal plus an additional interest
dividend of 8.98 per cent, including 4.06 per cent interest
in full to so.oal.led "Guardianship Claimants". Assets and
stockholders' unpaid assessments having book values in the
respective aggregate amounts of $175 473 00 and $51 737 00
and cash in tho sum of $40 876 00 were transferred to an
agent elected by the shareholders.

~ 5 -

SECOND NATIONAL BANK, BEL AIR, MARYLAND:
This bank was formerly in conservatorship.
finally placed in receivership October 13, 1933.

It was
Deposi

tors and other creditors received, including offsets
allowed, -5998 931 00, representing 97.12 per cent of
total liabilities established.

Unsecured depositors re­

ceived dividends aggregating 96.26 per cent of claims
Droved.

6

;RST NATIONAL BANK, CENTERLINE, MICHIGAN:
This bank was placed in receivership December 30,1932.

Depositors and other creditors received, including

offsets allowed, §211 689 00, representing 37.47 per cent
of total liabilities established.

Unsecured depositors

received dividends aggregating 81 per cent of claims
proved.

HASTINGS NATIONAL BANK, HASTINGS, MICHIGAN:
This bank was formerly in conservatorship.
finally placed in receivership December 27, 1933.

It was
Deposi­

tors and other creditors received, including offsets allowed,
$305 242 00, representing 93.57 per cent of total liabili­
ties established.

Unsecured depositors received dividends

Aggregating 93.46 per cent of claims proved.

7
CLINTON NATIONAL BANK, CLINTON, MISSOURI:
This bank was placed in receivership February 10, 1931.
Depositors and other creditors received, including offsets
allowed, $369 578 00, representing 68.96 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 53.9 per cent of claims proved.
PEOPLES NATIONAL BANK, CLINTON, MISSOURI:
This bank was placed in receivership February 2, 1932,
Depositors and other creditors received, including offsets
allowed, $264 658 00, representing 92.12 per cent of total
liabilities established.

Unsecured depositors received divi­

dends aggregating 90.5 per cent of claims proved.
FIRST NATIONAL BANK, MOUNTAIN GROVE, MISSOURI:
This bank was formerly in conservatorship.
placed in receivership February 19, 1934.

It was finally

Depositors and other

creditors received, including offsets allowed, $106 061 00,
representing 50.91 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 24 per cent
of claims proved.
ST. LOUIS NATIONAL BANK, ST. LOUIS, MISSOURI:
This bank was placed in receivership January 13, 1933. Deposi­
tors and other creditors received, including offsets allowed,
??1 539 552 00, representing 79.85 per cent of total liabilities
established. Unsecured depositors received dividends aggregating
65.92 per cent of claims proved.

FEOPLES NATIONAL BANK, SEYMOUR, MISSOURI:
This bank was formerly in conservatorship.

It was

finally placed in receivership August 23, 1933.

Deposi

tors and other creditors received, including offsets
allowed, §63 973 00, representing 47.65 per cent of
total liabilities established.

Unsecured depositors

received dividends aggregating 10.6 per cent of claims
proved.

9

POINT PLEASANT BEACH NATIONAL BANK & TRUST COMPANY,
POINT PLEASANT BEACH, NEW JERSEY:
This bank was placed in receivership February 3,~
1932.

Depositors and other creditors received, including

offsets allowed,

$431

130

00, representing 88.30 per cent

of total liabilities established.

Unsecured depositors

received dividends aggregating 59.7 per cent of claims
proved.

10

EIMHURST NATIONAL BANK, ELMHURST, NEW YORK:
This bank was formerly in conservatorship. It was
finally placed in receivership February 21, 1934,

Deposi­

tors and other creditors received, including offsets allowed,
J?99 965 00, representing 95.02 per cent of total liabilities
established.

Unsecured depositors received dividends aggregat­

ing 92.95 per cent of claims proved.

FIRST NATIONAL BANK, FRANKLIN, NEW YORK:
This bank was formerly in conservatorship.
placed in receivership July 21, 1933.

It was finally

Depositors and other

creditors received, including offsets allowed, *534 231 00,
representing 96.69 per cent of total liabilities established.
Unsecured depositors received dividends aggregating 94.7 per
cent of claims proved.

MANUFACTURERS NATIONAL BANK, ME CHAN ICSVILLE, NEW YORK:
This bank was placed in receivership August 10, 1931.
Depositors and other creditors received, including offsets
allowed,

t2

599 029 00, representing 83.22 per cent of total

liabilities established.

Unsecured depositors received divi­

dends aggregating 79,6 per cent of claims proved.

-

11

-

PEOPLES NATIONAL BANK, ADENA, OHIO:
This bank was placed in receivership April 13,1929.

Depositors and other creditors received, including

offsets allowed, $494 644 00, representing 81.69 per cent
of total liabilities established.

Unsecured depositors

received dividends aggregating 75.3 per cent of claims
proved.

~

12

-

FIRST NATIONAL BANK, HOUTZBALE, PENNSYLVANIA:
This bank was placed in receivership November 30,1931.

Depositors and other creditors received, including

offsets allowed, Ol 114 724 00, representing 91.15 per cent
of total liabilities established.

Unsecured depositors

received dividends aggregating 89.14 per cent of claims
proved.

13 -

NATIONAL BANK OF NEWBERRY, SOUTH CAROLINA:
This hank was placed in receivership July 1, 1929.
Depositors and other creditors received, including offsets
allowed, $480 345 00, representing 39.78 per cent of total
liabilities established.

Unsecured depositors received

dividends aggregating 25.89 per cent of claims proved.

CITIZENS SECURITY NATIONAL BANK, SISSETON, SOUTH DAKOTA:
This bank was placed in receivership January 5, 1933.
Depositors and other creditors received, including offsets
allowed, 0215 716 00, representing 71.46 per cent of total
liabilities established.

Unsecured depositors received,

dividends .aggregating 39.2 per cent of claims proved.

•FARMERS & MERCHANTS NATIONAL BANK, WEBSTER, SOUTH DAKOTA:
This bank was pierced, in receivership October 15, 1931.
Depositors and other creditors received, including offsets'
allowed, «5367 151 00, representing 69.98 per cent of total
liabilities established.

Unsecured depositors received

dividends aggregating 66.1 per cent of claims proved.

15

TWIN CITY NATIONAL BANK, BLUEFIELD, VIRGINIA:
This bank was placed In receivership August 22, 1932.
Depositors and other creditors received, including offsets
allowed, $77 564 00, representing 55.23 per cent of total
liabilities established.

Unsecured depositors received

|ividends aggregating 25.4 per cent of claims proved.

FIRST NATIONAL BANK, ST, ALBANS, WEST VIRGINIA:
This bank was formerly in conservatorship.

It

was finally placed in receivership December 13, 1933.
Depositors and other creditors received, including
offsets allowed, $303 737 00, representing 90.67 per
cent of total liabilities established.

Unsecured depo

itors received dividends aggregating 89.26 per cent of
claims proved.

F age A

INSOLVENT NATIONAL BANKS LI QUI BATED AND FINALLY CLOSED
OH RESTORED TO SOLVENCY DURING THE MONTH OF
AUGUST, 193S

Name and L o ca tio n o f Bank.
F i r s t N atl Bank
H a r ts e lle , Ala.
F i r s t N atl Bank
Benton, 111.
F i r s t N atl Bank
Mendota, 111.
Mendota N atl Bank
Mendota, 111.
F i r s t N atl Bank
Marion, Ind.
Second N atl Bank
B e l A ir , Md.
F i r s t N atl Bank
C e n te r lin e , Mich.
H astings N atl Bank
H astin g s, Mich.
C lin ton N atl Bank
C lin to n , Mo.
P eop les N atl Bank
C lin to n , Mo.
F i r s t N atl Bank
Mountain Grove, Mo.
S t . Louis N atl Bank
S t . L o u is, Mo.
P e o p l e s N a t l Bank
S eym ou r, Mo.

Date o f
F a ilu r e .

P er Cent
T o ta l
T o ta l D is hursement s
Di s"bur s ement s
Including
To T o ta l
O ffs e ts Allowed. L i a h i l i t i e s .

2- I 6- 3 I

$ 525 039 00

L2 - 2— 30

99 U 308 00

P er Cent
Dividend
C ap ital
D eclared
Stock at
To A ll
Dat e of
Claimant s • F a ilu r e .

Cash, A ssets ,
U n co llected Stock
Assessm ents, e tc .
Returned to Sh areh o ld e rs’ A^ent •

8 8 .6

8 1 .1

$ 100 000 00

, 6 6 .0 1

3 6 .6

100 000 00

000

$

000

2 - I 2 -3 2

1+55 637

00

92. 3g

9 1 .I+

100 000 00

000

2 - I 2-32

763 59S 00

98.0 9

9 8 .35

100 000 00

000

7 360 9U1 00

10 3 .8 3

350 000 00

268 086 00

2/ 1 0 -1 3 -3 3

99S 931 00

9 7 .1 2

9 6 .2 6

60 000 00

000

I 2 - 3 O-3 2

2 1 1 689 00

87-^7

81.

50 000 00

000

2/ I 2- 2 7-3 2

805 2 k 2 00

9 8.57

98. U6

50 000 00

000

2- I O - 3 I

369 57S 00 r

6 8 .9 6

5 3 .9

50 000 00

000

2- 2-32

26 k

658 00

9 2 .1 2

9 0 .5

50 000 00

000

2/ 2 - 19 - 3!+

106 06I 00

5 0 .9 1

2l+.

25 000 00

000

1 -1 3 -3 3

1 539 552 00

79-85

6 5 .9 2

200

000 0 0

000

1+7.65

10.6

25

000 00

000

2/ 1 2 -5 -3 3

2J S-23-33

j

6s

973

00

1 0 8 .9 8 1/

INSOLVENT NATIONAL BANKS LIQUIDATA)!) AND FINALLY CL0SAÎD
OR fii)STORED TO SOLVENCY DURING THE MONTH OP
AUGUST, 1938

Date o f
F a ilu r e .

P oin t P le a sa n t Beach NB&TrCo.
P o in t P le a s a n t Beach, N. J . 2-3-32
$ U31 130 00
Elmhurst N atl Bank
Elm hurst, N. Y .
£/ 2-2 1 -3U
799 965 00
F i r s t N atl Bank
F r a n k lin , N. Y.
1/ 7-21-33
53^ 231 00
M anufacturers N atl Bank
Mechanic s v i l l e , N. Y.
8-IO-3 1 2 599 029 00
P eoples N atl Bank
Adena, Ohi o
U9U 6UU 00
U-13-29
F i r s t N atl Bank
Houtzdale, Pa.
1 1 -30 -31 1 1 1 U 72 U 00
N atl Bank o f
Newberry, So. Car.
Ugo 3^5 00
7 -1-2 9
C itiz e n s S e c u rity N atl Bank
S is s e to n , So. Dak.
1-5-33
215 716 00
Farmers & Merchants N atl Bank
W ebster, S o . Dak.
10 -1 5 -3 1
367 15 1 00
Twin C ity N atl Bank
Blue f ie Id , Va.
8-22-32
77 56U 00
F i r s t N atl Bank
S t . Albans, W. Va.
2/ 12-18-33
303 737 00

2/
U

—
—

P er Cent
Dividend
D eclared
To A ll
C laim ants.

$ 100

88.30

59.7

000

95.02

92.95

200 000 00

000

96.69

9U.7

50 000 00

000

83.22

79.6

100 000 00

000

8I.69

75.3

50 000 00

000

9I.I5

89 .lU

125 000 00

000

39-78

25.89

100 000 00

000

7 Ì.U6

3 9 .2

50 000 00

000

69.9 8

6 6 .1

50 000 00

000

55.23

25 .k

50 000 00

000

90.67

89.26

25 000 00

000

000

F o rm e rly in c o n s e r v a to r s h ip .
I ncXii cling

h . 0&^>

interest

in

-full

to

Cash, A sse ts,
U n co llecte d Sto ck
Assessm ents, e t c .
Returned to Share­
h o ld e rs’ Agent.

C a p ital
Stock a t
Date of
F a ilu r e .

0
0

Name and L o ca tio n o f Bank.

P e r Cent
T o ta l D is­
T o ta l
bursements
Disbursements
To T o ta l
Inclu d in g
L
i
a b i l i t ie s .
O ffs e ts Allowed.

*a g e 3

s o called-

"Gua rdiansh ip

Claimants”.

LIQUIDATION DATA
24

INSOLVENT NATIONAL BANKS
COMPLETELY LIQUIDATED AND FINALLY CLOSED
MONTH OF AUGUST 1958
DISPOSITION OF TOTAL COLLECTIONS

DISPOSITION OF TOTAL LIABILITIES

®
M r*

p

rA rA rA rA fà

rATArArArArArATArA

rA rA rÄ rA rA rÄ rÄ rA rA

rA^ArArArArArArArA
rA * À W jfA m j
rA rA rA U rA rA ^ A t

'ArArArAtA
rArATArAr/.
SfàÈMSÈ
HHBgSSgH
m*atatavat

A
B
C
D

—
—

Dividend Payments
Other Cash Payments
Offsets Allowed
Unpaid Liabilities

$ 11,456,378 54,2$
$ 4,904,842 23.2$
%
1,521,223 7.2$
$ 3,260,615 15.4$
$ 21,143,058

TREASURY

D E P A R T M E N T

E
F
G
H

—
—

$ 11,456,378
Dividend Payments
$ 4,904,842
Other Cash Payments
40,876
Returned to Shareholders $
Expense of Liquidation $ 1.371,859
$

17,773,955

INSOLVENT NATIONAL BANKS
DISPOSITION OF COLLECTION DOLLAR (INCLUDING OFFSETS ALLOWED) IN
CLOSED RECEIVERSHIP BANKS THE LIQUIDATION OF WHICH HAD BEEN COMPLETED
TO
AUGUST 31. 1938

1 ,1 4 9 R eceiverships Liquidated and Closed
period March 1 6 , 1933 to August 31> 193#

TREASURY
o f

t h e

D E P A R T M E N T

C o m p t r o lle r

of

t h e

C u r r e n c y

2 ,2 6 0 R eceivership s Liquidated and
Closed A pril 14 > 1365 to August 31» 1933

Sta

MH« GASTON
(Attention of Mr« Schwarz, Room 289, Treasury Building)
FROM THE COmSSIONER OF CUSTOMS:
There is attached for immediate release a tabulation showing
Imports of red cedar shingles from Canada, under the quota provisions
of the Canadian Trade Agreement, during the period July 1 to
September 10, 1958«
When the release has been mimeographed, please have 140 copies
forwarded to Miss Henry, Room 415, Washington Building.

JS

9 /1 2 /3 6

PRESS RELEASE
The Cossalaaloner of Customs today announced that preliminary
reports show Imports of 821,778 squares of red cedar shingles from
Canada, under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to September 10, 1938«
These importations represent 95 percent of the quote
established in Executive Order No. 7946, of August 9, 1938, which
limits importations of this commodity to 864,881 squares during
ths lest six months of the calendar year 1938«

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Monday, September 12, 1938.

Press Service
No. 14-55

The Commissioner of Customs today announced that preliminary reports
show imports of 821,778 squares of red cedar shingles from Canada, under
the quota provisions of the Canadian Tro.de Agreement, during the period
July 1 to September 10, 1938.
These importations represent 95 percent of the quota established in
Executive Order No. 7946, of August 9, 1938, which limits importations
of this commodity to 864,881 squares during the last six months of the
calendar year 1938.

— oOo—

mostrar

dkp akme bt

wmm&tos
FOR RSLSiS«, MOSHIHO 8SSSPAPIKS,
Ta>»d«y, B u f a b * r 18. 1938.
9712/38

thè Secretary

Freee Serrioa

V * . l ¡tf - S C

of th# Treasury anaouneed laet evening th&t thè

tandera for $100,000 *000, or thereabouts, et 91-day Trwaaury bill®, te be
dated 3 ep tomber 14 and to mature Beeesaber 14, 1938, wbich were offerad on
Septeisber 9,

ver® opened at thè Federal Reserve feaah® o» Septeiaber 18*

thè detail» et tàie lese® are a® felle«» t

total applied for
total accepte d

« $818,640,000
*
100,000,000

Range of aeeepted feida:
High
lew

Average prie®

100*

99*948 Equivalent rate approxlaately 0*18? percent
99.994
*
«
*
0*103
*

(80 percent et thè amenât bld ter at thè lew prie® ma® aeeepted)

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, September 13, 1938.
9-12-38

Pr gss Service
No. 14-56

The Secretary of the Treasury announced last evening that the tenders for
$100,000,000, or thereabouts, of 91-day Treasury bills, to be dated September 14
and to mature December 14, 1938, which were offered on September 9, were opened
at the Federal Reserve banks on September 12.
The details of this issue are as follows:
Total applied for
Total accepted

- $218,660,000
- 100,000,000

Range of accepted bids:
High
Low
Average price

- 100.
- 99*968
- 99.974

Equivalent rate approximately 0.127 percent
»
»
»
0.103
»

(20 percent of the amount bid for at the low price was accepted)

— cOo

t

IMPORTATIONS OF CATTLE, CREAM AND CERTIFIED SEED POTATOES
UNDER THE QUOTA PROVISIONS OF THE CANADIAN TRADE AGREEMENT
Preliminary Figures as of September 3, 1938

Customs District

_______ January 1 to September 3, 1938_________
CATTLE
:CATTLE 700# :
DAIRY COWS :
UNDER 175# : OR MORE
: 700# OR MORE : CREAM
(Head)
: (Head)
:
(Head) : (Gal,)

TOTAL IMPORTS
Percent of Quota

34,674
66.8%

61,983
39.8%

4,288
21.4%

4,833
0.3%

5,301
113
1

4
36
7
311
10
1
23
767
2,806
323
4,288

2
157
63
6
4,222
4,450

-

'-

-

383

FROM CANADA
Alaska
Buffalo
Chicago
Dakota
Duluth & Superior
Florida
Maine & N. H.
Massachusetts
Michigan
Minnesota
Montana & Idaho
New York
Omaha
Oregon
Philadelphia
St. Lawrence
Vermont
Virginia
Washington
Total from Canada

89
43
1,452
89
16,252
5,512
453
3.305
32,610

6,604
339
2,192
33
20
21
2,449
15,785
2,362
101
21
159
501
168
3,255
34,010

FROM MEXICO
Arizona
El Paso
San Antonio
San Diego
Total from Mexico

752
741
561
10
2,064

7,328
16,251
2,856
1,538
27,973

FROM OTHER COUNTRIES
Puerto Rico

-

-

-

(Prepared by Division of Statistics and Research, Bureau of Customs)

PRESS RELEASE

Th© Commissioner of Customs today announced preliminary figures
for Imports of cattle, erdsm and certified seed potatoes, under the
quota provisions of the Canadian Trade Agreement, as of September 5,
1938, and the percentage that such imports bear to the totals
allowable under the quota provisions, as follows:

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, September 13, 1938.

Press Service
No. 14-57

The Commissioner of Customs today announced preliminary figures for imports
of cattle, cream and certified seed potatoes, Under the quota provisions of the
Canadian Trade Agreement, as of September 3, 1938, and the percentage that such
imports bear to the totals allowable under the quota provisions, as follows!
•
•
8
•

34,674
66.8$

FROM CANADA
Alaska
Buffalo
5,301
Chicago
Dakota
113
Duluth & Superior
1
Florida
Maine & N.H.
89
Massachusetts
Michigan
43
Minnesota
1 ,452
Montana & Idaho
89
New York
16,252
».
Omaha
Oregon
r*
Philadelphia
—
St, Lawrence
5,512
Vermont
453
—
Virginia
Washington
3,305
Total from Canada 32,610
MEXICO
Arizona
®1 Paso
Sen Antonio
San Diego
Total from Mexico
M
OTHER COTTTVTTRTEft
Puerto Rico

4,288
21.4$

61,983
39.8$

4
36

6 ,604
339
2,192
33

! CREAM
: (Gal*)

: SEED POTATOES
:
(Pounds)

4,833
jM

TOTAL IMPORTS
Percent of Quota

•
•

: Dec.1,1937 to
: Sopt. 3, 1938
: WHITE OR IRISH

10•

Customs
District

J amieny 1 to September 3, 1938
:
CATTLE
! CATTLE 700#:' DAIRY COWS
: UNDER 175# : OR MORE i 700# OR MORE
: (Head)
(Head) :
(Head)

30,961,474
68.8$

2
160,770

».

'A
».

7

157

-,
—

—
—

20
21
2,449
15,785
2,362
101
21
159

311
10
1

63

109,500
40,380
2,497,480
2,926,614
3 ,944,554
1,276,290

A

,—
767
2,806

—
6
4,222

323
4,288

—

-

»

23

3,255
34,010

7,328
16,251
2,856
1,538
27,973

§|

*T

».

M
M

18,774,846

501
168

752
741
561
10
2,064

—
—

».

«»»

r-

m

m
— 0 O0 —

. 4,450

415,316
800
40,280
761,944
12,700
30,961,474

•-*
».

DM

■0+

m
m

A*
«

*.

383

—

-

TR8ASÜHY DEPAKEMBSY
Washington

fe» immura

reliase,
Wednesday, September 14, 1938.

Press Servie«
f,

Seoret&ry of the Treasury Mergenthau today annotineed the fteal subseription and
allotment figures with respect to the current offering of 8-1/2 percent Treasury Bob
of 1950-82 and 1-1/8 percent Treasury Kotes of Series A-1943.
Subscriptions and allotments were divided among the several federal Reserve d
tricts and the Treasury as follows!
2-1/8 WtStSÉñ T m S U K T BONDS Of 1950-52
Federal Reserve
District

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* louis
Minneapolis
Kansas City
Dallas
San francisco
Treasury
TOTAL

Total Cash
Subscriptions
Received

Total Cash
Subscriptions
Allotted

f «59,287,600
2,054,058,700
287,513,250
249,438,950
141,925,250
1ST,211,100
458,447,550
106,021,100
58,257,700
89,527,750
82,253,400
290,254,950
82.936.000
$¡«,*87,353,650

1 «6,801,800
804,609,100
30,005,100
28,228,950
15,044,250
14,861,«50
47,455,350
11,876,780
4,201,500
9,485,850
8,904,950
39,449,000
8.337.050
#461,681,100

Total Exchange
Subscriptions
Received
(Allotted In full)
* 9,150,500
285,941,200
4,388,200
3,454,000
4,933,800
1,601,000
57,788,700
4,442,400
1,923,500
14,547,400
3,372,300
5,115,100
358.500
Ü 9 ? , 259 ,100

Total
Subscription«!
Allotted
# 55,952,600
488,550,300
36,395,300
31,884,930
19,998,050
16,462,490
105,424,090
16,589,190
8,125,000
24,033,430
12,277,260
34,584,100
8.695.990
$856,920,200

1-1/8 P3RCSNT TREASURY R O T ® Of SSRIBS A-1943
federal Reserve
District

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL

Total Cash
Subscriptions
Received

% 221,801,200
1,410,911,000
174,600,400
194,955,600
100,267,800
98,547,800
351,016,500
84,507,300
46,049,000
70,843,200
59,914,300
243,429,900
1.247.000
£3.061.925,£00

-iüpwwi m

'i W

f t w

w

if c —

Total datò
Subscriptions
Allotted
1 24,688,500
155,554,000
19,342,500
21,941,600
11,373,100
12,503,000
39,472,300
9,990,900
5,315,700
8,094,300
4,950,500
24,922,500
199,200
|S4£,090,300

Total Exchange
Subscriptions
Received
(Allotted in full)
t 2,055,500
16,312,500
353,500
1,404,000
737,000
195,000
5,512,400
528,500
190,500
440,400
40,000
433,500
207.000
126,850,000

Total
Subscription
Allotted
#24,744,000
171,848,500
19.494.000
25 ,545»805

12,110,100
12.498.000
42,984,700
10,519,400
5,506,200
8,764,900
7,010,500
27.356.000
546.2Q0
®gavRo¡300

TREASURY DEPARTMENT
Washington
|jOR IMMEDIATE RELEASE,
*
fednesday, September 14, 1938.

Press Service
No. 14-58

Secretary of the Treasury Morgenthau today announced the final subscription
and allotment figures with respect to the current offering of 2-1¡2 percent Treasury
Bonds of 1950-52 and 1-1/8 percent Treasury Notes of Series A-1943.
Subscriptions and allotments were divided among the several Federal Reserve
districts and the Treasury as follows:
2-1/2 PERCENT TREASURY BONDS OF 1950-52
federal Reserve
District

Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL

Total Cash
Subscriptions
Received
$ 459,227,600
2,036,058,700
287,613,250
269,438,950
141,925,250
127,211,100
458,647,650
104,021,150
58,237,700
89,527,750
82,253,600
290,254,950
82,936,000
$4,487,353,650

Total Cash
Subscriptions
Allotted

Total
Subscriptions
Allotted

Total Exchange
Subscriptions
Received
(Allotted in full)

$ 46,801,800
204,609,100
30,005,100
28,226,950
15,064,250
14,861,450
47,635,350
11,876,750
6,201,500
9,685,850
8,904,950
29,469,000
8,337,050
$461,681,100' '

$

9,150,800
283,941,200
6,388,200
3,656,000
4,933,800
1,601,000
57,788,700
4,662,400
1,923,500
14,347,600
3,372,300
5,115,100
358,500
$397,239,100

$ 55,952,600
488,550,300
36,393,300
31,884,950
19,998,050
16,462,450
105,424,050
16,539,150
8,125,000
24,033,450
12,277,250
34,584,100
8,695,550
$858,920,200

1-1/8 PERCENT TREASURY NOTES OF SERIES A-1943
Moral Reserve
District

Boston
Hew York
Philadelphia
Cleveland
Hichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dellas
San Francisco
Treasury
TOTAL

Total Cash
Sub scrip tion s
Received

Total Cash
-Subscriptions
Allotted

$ 221,601,200
1,410,911,000
174,600,600
196,955,600
100,267,000
90,547,800
351,016,500
86,307,300
46,043,000
70,063,200
59,914,300
243,629,900
1,267,000
$3,051,925,200

$ 24,688,500
155,$56,000
19,342,500
21,941,800
11,373,100
12,303,000
39,472,300
9,990,900
5,315,700
8,094,300
6,950,500
26,922,500
139,200
$342,090,300

— oOo

Total Exchange
Subscriptions
Received
(Allotted in full)
$ 2,055,500
16,312,500
353,500
1,604,000
737,000
195,000
3,512,400
528,500
190,500
660,600
60,000
433,500
207,000
$ 26,850,000

Total
Subscriptions
Allotted
$ 26,744,000
171,868,500
19,696,000
23,545,800
12,110,100
12,498,000
42,984,709
10,519,400
5,506,200
8,754,900
7,010,500
27,356,000
346,200
$368,940,300

IMPORTS OF DOUGLAS FIR AM) WESTERN HEMLOCK UNDER THE
QUOTA PROVISIONS OF THE CANADIAN TRADE AGREEMENT
Preliminary Figures as of September 3, 1938

Customs Districts

TOTAL IMPORTS
Percent of Qnota

:
January 1 to September 3, 1938
: Sawed Timber & Lumber Not Specially Provided For
TOTAL FIR
MIXED FIR :
WESTERN
: DOUGLAS
& HEMLOCK :
& HEMLOCK.
HEMLOCK
:
FIR
(Bd. Ft.)
(Bd. Ft.) :
(Bd.Ft.)
: (Bd.Ft.)
67,295,627

17,983,378

19,339,203

104,618,208
41.9#

FROM CANADA
Alaska
Buffalo
Connecticut
Dakota
Duluth and Superior
Los Angeles
Maine and N. H.
Massachusetts
Michigan
Montana and Idaho
New York
Philadelphia
Rhode Island
St. Lawrence
San Francisco
Vermont
Washington

512,058
1,455,635
3,320,736
13,021,979
7,505,598
15,103,098
101,758
7,080,454
82,781
15,084
13,244
9,266,369
530,883
35,512
260,315
272,515
8,717,608

..

827,299
38,059
1,672,254
3,040,745
346,949
-

8,791,489
231,647
-

1,837,730
668,879
150,598
60,000
317,729

-

-

-

58,525
19,213,624
150
•
66,904

512,058
2,282,934
3,358,795
14,694,233
10,546,343
15,508,572
101,758
15,871,943
314,428
15,084
19,226,868
11,104,099
1,199,762
35,662
410,913
332,515
9,102,241

(Compiled by the Division of Statistics and Research, Bureau of Customs)

PRESS RELEASE

The Commissioner of Customs today announced preliminary
figures for imports of Douglas fir and Western hemlock, under the
quota provisions of the Canadian Trade Agreement, as of September
3, 1933, and the percentage that such imports bear to the total
allowable under the quota provisions, as follows:

OFFICE OF THE COMMISSIONER OF CUSTOMS

Sta

S E P 15 1938

MR, GASTON
(Attention of Ur* Schwara, Roam 289» Treasury Building)
FROM THE COMMISSIONER OF CUSTOMS:
There is attached for immediate release a tabulation shoving
imports of Douglas fir and Westenn hemlock, under the quota provisions
of the Canadian Trade Agreement, as of September 3, 1938.
When the release has been mimeographed, please have 145 copies
forwarded to Miss Henry, Room 415, Washington Building.

TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING NEWSPAPERS,
Thursday, September 15, 1938.
9/14/38.

Press Service
No. 14-59

Hie Commissioner of Customs today announced preliminary figures for
imports of Douglas fir and Western hemlock, under the quota provisions of the
Canadian Trade Agreement, as of September 3,

1938, and the percentage that

such imports bear to the total allowable under the quota provisions, as
follows:

Customs Districts

TOTAL IMPORTS
Percent of Quota

:
January 1 to September 3, 1938
: Sawed Timber & Lumber Not Specially Provided For
:DOUGLAS
: WESTERN :
MIXED FIR :
TOTAL FIR
: FIR
& HEMLOCK : & HEMLOCK
HEMLOCK *
(Bd. Ft.)
:(Bd.Ft.) : (Bd.Ft.) :
(Bd.Ft. )
:

67,295,627

17,983,378

19,339,203

104,618,208
41 »,95

PROM CANADA
Alaska
Buffalo
Connecticut
Dakota
Duluth and Superior
Los Angeles
Maine and N.H.
Massachusetts
Michigan
Montana and Idaho
New York
Philadelphia
Rhode Island
St. Lawrence
San Francisco
Vermont
Washington

512,058
1,455,6353,320,736
13,021,979
7,505,598
15,103,098
101,758
7,080,454
82,781
15,084
13,244
9,266,369
530,883
35,512
260,315
272,515
8,717,608

_

827,299
38,059
1,672,254
3,040,745
346,949

58„525

■i£
8,791,489
231,647
—

1,837,730
668,879
—
150,598
60,000
317,729

oOo-’-'

—
—

—
19,213,624

150

66,904

512,058
2,282,934
3,358,795
14,694,233
10,546,343
15,508,572
101,758
15,871,943
314,428
15,084
19,226,868
11,104,099
1,199,762
35,662
410,913
332,515
9,102^241

IMPORTS OF COMMODITIES FROM THE PHILIPPINES UNDER QUOTA.
PROVISIONS OF PHILIPPINE INDEPENDENCE ACT AND CORDAGE ACT OF 1935
Preliminary Figures, as of September 3, 1938

Customs District

TOTAL IMPORTS
Fer Cent of Quota
Hawaii
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
San Antonio
San Francisco
Virginia
Washington

:
January 1 to September 3. 1938
*
: REFINED : UNREFINED
SUGAR
:
ï COCONUT OIL 5 SUGAR
(Pounds)
s (Pounds) :
:
(Pounds)
334,870,037
52.4$
24,838
6,078,634
1,890,330
40,710,722
36,891,565
126,764,301
•
6,644,920
89,594
*
15,088,313
686,820

: May 1 to Septl
:
3. 1938
CORDAGE
:
(Pounds)
:

87,915,986 1,504,771,627
84.0$
78.5$
**

19,791,763
•
as*
»
-

24,876,629
»
•
♦
•
43,247,594

15,773
473,805
152,828,297
65,511,770
234,686,647
620,332,755
61,596
393,710,666
•
mm

37,094,746
•
55,572

467,322
? . 8 $

67,995
81,369
*
12,405
20,852
•
12,704
25,688
5,171
221,346
8,497
11,295

(Prepared by DiTiaion of Statistics and Research, Bureau of Customs)

}• + £ *

m m

H1LSASE

the Commissioner of Customs today announced preliminary
figures for imports of commodities coming into the United States
from the Philippine Islands under the quota provisions of ths
Philippine Independence Act« during the period January 1 to
September 3» 1938, and under the Cordage Act of 1935, during the
period May 1 to September 3, 1938, also the percentage that such
imports bear to the totals allowable under the quota provisions,

as follow s!

-m
m

Sta

TO I«?. GASTON
(Attention of Mr* Schwarz, Hoorn 289, Treasury Building)
FROM THE COMMISSIONER OF CUSTOMS:
1

There is attached! a tabulation for immediate release showing
preliminary figures for imports of commodities coming into the
United States from the Philippine Islands, under the quota pro­
visions of the Philippine Independence Act and the Cordage Act of
1935* as of September 3* 1938*
When this tabulation has been mimeographed, please have 90
copies forwarded to Miss Henry* Room 415, Washington Building*

111

iI

A

9/14

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, September 16, 1936.
9/15/38.

Press Service
No. 14-60

The Commissioner of Customs today announced preliminary figures for
imports of commodities coming into the United States from the Philippine
Islands under the quota provisions of the Philippine Independence Act,
during the period January 1 to September 3, 1938, and under the Cordage
Act of 1935, during the period May 1 to September 3, 1938, also the per­
centage that such imports hear to the totals allowable under the quota
provisions, as follows:
:
Customs District

January 1 to September 3,

: RE'FINED
; COCONUT OIL : SUGAR
* (Pounds)
j (Pounds)

TOTAL IMPORTS
Per Cent of Quota

234,870,037
52.4$

Hawai i
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
• San Antonio
Son Francisco
Virginia,
Washington

24,838
6,078,634
1,890,330
40,710,722
36,891,565
126,764,301
6,644,920
89,594
15,008,313
-

686,820

87,915,986
78.5$

19,791,763
~
24,076,629
n
43,247,594

1938

: Un r ef i n e d
SUGAR
:
: (Pounds )

• M ay 1 to Sept
3, 1938
:
CORDAGE
:
(Pounds)

1,504,771,627
84.0$
15,773
473,805
152,828,297
65,511,770
234,686,647
620,332,755
61,596
393,710,666
37,094,746
55,572

467,322
7.9$
67,995
81,369
-

12,405
20,852
12,704
25,688
5,171
221,346
8,497
11,295

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
T^^X^^September

Press Service
No./</■-£/

1938

Secretary Morgenthau announced today that Bernard Bernstein who, since
December 1935, has served in various capacities in the Legal Division, has
been promoted to the position of Assistant General Counsel for the Depart­
ment, in which capacity he will be in charge of the Monetary and Exchange
Section of the Legal Division. Mr. Bernstein, a native of New York City and
a graduate of Columbia University Law School, was, prior to joining the
legal staff of the Treasury Department, engaged in general practice in New
York City, with the firm of Taylor, Blanc, Capron and Marsh.

His work since

coming to the Department has been primarily in connection with the handling
of problems pertaining to gold and silver and to mint, monetary, and foreign
exchange matters.
The Secretary announced also the promotion of Lawrence J. Bernard to
the position of Assistant General Counsel.

In his new position Mr. Bernard

will be in charge as to legal aspects of legislative matters (except Revenue),
Executive orders, and proclamations pertaining to the Department. Mr. Bernard))
a graduate of Stetson University Law School, before joining the legal staff
of the Department in September 1935, had served for two years on the legal
staff of the National Recovery Administration, prior to which time he had
been engaged in private practice in DeLand, Florida. For the past several
months Mr. Bernard has been serving as a special assistant to the Chief Coun­
sel, Bureau of Internal Revenue, previously to which, as a special a s s is ta n t
to the General Counsel for the Department, he had supervision over the legal
work of the Bureau of Customs, Procurement Division, Public Health Service,
United States Coast Guard and of the Bureau of Narcotics.

TREASURY DEPARTMENT

Washington
FOR IMMEDIATE RELEASE,
Thursday, September 15, 1938.

Press Service
No. 14-61

Secretary Morgenthau announced today that Bernard Bernstein who, since
December, 1933, has served in various capacities in the Legal Division, has
been promoted to the position of Assistant General Counsel for the Department,
in which capacity he will be in charge of the Monetary and Exchange Section of
the Legal Division.

Mr. Bernstein, a native of New York City and a graduate

of Columbia University Law School, was, prior to joining the legal staff of
the Treasury Department, engaged in general practice in New York City, with the
firm of Taylor, Blanc, Capron and Marsh.

His work since coming to the Depart­

ment has been primarily in connection with the handling of problems pertaining
to gold and silver and to mint, monetary, and foreign exchange matters.
The Secretary announced also the promotion of Lawrence J. Bernard to the
position of Assistant General Counsel.

In his new position Mr. Bernard will be

in charge as to legal aspects of legislative matters (except Revenue), Executive
orders, and proclamations pertaining to the Department.

Mr. Bernard, a graduate

of Stetson University Law School, before joining the legal staff of the Depart­
ment in September, 1935, had served for two years on the legal staff of the
Rational Recovery Administration, prior to which time he had been engaged in
private practice in DeLand, Florida.

For the past several months Mr. Bernard

has been serving as a special assistant to the Chief Counsel, Bureau of Internal
Revenue, previously to which, as a special assistant to the General Counsel for
the Department, he had supervision over the legal work of the Bureau of Customs,
Procurement Division, Public Health Service, United States Coast Guard and of
the Bureau of Narcotics.

— 000—'

m. GASTON
(Attention of Mr« Schwarz, Hoc® 289» Treasury Building)

FHOM THE CCfiaOSSKWB GF CTBTCKB:
There is attached for Immediate release a tabulation showing
Imports of red cedar shingles from Canada» under the quota provisions
of the Canadian Trade Agreement, during the period July 1 to
September 14, 1938.
When the release has been mimeographed, please have 145 copies
forwarded to Mlae Henry, Room 415, Washington Building.

PRESS RELEASE
The Commiasloner of Customs today announced that preliminary
reports shoe Imports of 851 #144 squares of red cedar shingles from.
Canada» under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to September 14, 1958»
These importations represent 98.4 percent of the quote
established In Executive Order Bo» 7946, of August 9» 1938, which
limits Importations of this commodity to 864,881 squares during the
last six months of the calendar year 1938*

TREASURY DEP ARTMEET
Washington
EOR IMMEDIATE RELEASE,
Thursday, September 15, 1938.

Press Service
No. 14-62

The Commissioner of Customs today announced that preliminary
reports show imports of 851,144 squares of red cedar shingles from
Canada, under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to September 14, 1938.
These importations represent 98.4 percent of the quota es­
tablished in Executive Order No. 7946, of August 9, 1938, which limits
importations of this commodity to 864,881 squares during the last six
months of the calendar year 1938.

■oOo—

-

2

-

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
September 19, 1928

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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on September 21, 1958______ .
The Treasury bills will be exempt, as to principal and interest,
and any gain from the sale or other disposition thereof will also bo
exempt, from all taxation, except estate and inheritance taxes.

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

No loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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.

SAtCBBaatrfrgra rY T tatfag

'TREASURY DEPARTM E M 1

FOR RELEASE, MORNING PAPERS,
Friday, September 16, 1938.

t M M g x M xxxxm m m m x x
The Secretary of the Treasury gives notice that "tenders are
invited for Treasury hills to the amount of $ 100,000,000, 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 Federal Reserve Banks,

or the branches thereof, up to two o*clock p. m,, Eastern Standard time,
on Monday, Sept ember 19, 1938«

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated September 21. 1938 , and will

Tfrjfa.
' mature on December 21, 1938 t 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 (maturi ty .value).
It is urged that tenders he ma.de 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-consxderuch
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 mush hot he used*—

Tenders will be accepted^without cash deposit from i n c o r p o r ­
ated hanks and trust" companies and from responsible and recognized
dealers in investment securities.

Tenders from .others must he a c c o m -

panied by a deposit of 10 per cent of the face amount of Treasury hills

TREASURY DEPARTMENT

FOR RELEASE, MORNING PAPERS,
Friday, September 16, 1938.

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, September 19, 1938.
Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated September 21, 1938, and will mature on
December 21,. 1938, 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 denomi­

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 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 expross guaranty of payment by an incorporated bank or trust company.

- 2 -

Immediately after the closing- hour for receipt of tenders on September
19, 1938, all tenders received at the Federal Reserve Banks or tranches thereof
up to the closing hour fd.ll 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 than the
amount applied for, and his auction 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 21, 1938.
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.

(Attention is invited to

Treasury Decision 4550, ruling that Treasury bills are not exempt from the
gift tax.)

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 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.
— oOo—

TREASURY DEPARTMENT
O F F IC E O F T H E S E C R E T A R Y

WASHINGTON

C O M M ISSIO N E R O F
ACCOUNTS A N P D E P O SIT S

September 7, 1938«

TO MR« GASTON:

During the month of August, 1938, the fol­
lowing market transactions took place in Government
securities:

Total sales - - - - - - Total purchases---- - Net sales

- - - - - -

$ 7,520,650
3,615,000
$ 3,905,650

TREASURY D8PAS3JWBNT
Washington

FOR IMMEDIATE RELEASE,
Friday, September 16, 1938.

Pross Service
No. 14-63

Market transactions in Government securities for Treasury investment
accounts in August, 1938, resulted in net sales of $3,905,650, Secretary
Morgenthan announced today.

— oOo—

1

-

2

-

and “by Federal Reserve banks, none of which is in a position to take
advantage of the tax-exempt features of such securities«

A larg e p ortion o f the inform ation dealing with S ta te and lo c a l debt
presented in the p resen t rep ort is compiled in much g re a te r d e t a il decen­
n ia lly by the Bureau o f the Census, the l a t e s t com pilation applying to
the year 1932.

The p resen t r e p o rt, applying to the year 1937t half-way

between the census years 1932 and 19 ^2 * i s b eliev ed to f i l l the need for
an in te r -c e n s a l estim ate o f S ta te and lo c a l debt op eration s.
There is appended to the rep ort a memorandum summarizing the av a il­
ab le data w ith resp ect to the ownership o f tax-exempt s e c u r itie s by
o riv a te in v e sto rs.

h L j ¡j

1%

T

P B lS g ^ m iA S l fo e

*/ 7

SECURITIES EXEMPT TOOBL'TP FEDERAL INCOME TAX
JUS OF JUNE 3 0 , 1937
A d e ta ile d survey o f s e c u r itie s exempt from the Federal income tax
outstanding as o f June 30* 1937* has been completed by the Treasury Depart­
ment, in cooperation with the Bureau of the Census.

The s e c u r it ie s covered

are o f two c la s s e s ; those the in t e r e s t on which is exempt from the normal
Fed eral income ta x only — g e n era lly re fe rre d to as p a r t i a l l y tax-exempt
s e c u r it ie s — , and those the in te r e s t on which i s exempt from the surtax
as w ell as the normal ta x — g e n era lly re fe rre d to as wholly tax-exempt
s e c u r it ie s .
Summary s t a t i s t i c s with resp ect to the estim ated outstanding amounts
o f both o f these c la s s e s o f s e c u r itie s are published re g u la rly in the Annual
Report o f the S ecretary o f the Treasury.

The estim ates r e la tin g to June 30»

1 9 3 7 » contained in the presen t survey, were f i r s t published in summary

form in the Annual Report fo r 1937» relea sed in January 1938*
The present survey, co n sistin g o f 113 pages, includes a d e ta iled
a n a ly sis o f the amount o f tax-exempt s e c u r itie s estim ated to be outstanding
on June 30* 1937* au.d o f the annual amount o f in te r e s t accruing on such
s e c u r it ie s .

The survey a lso contains an a n a ly sis o f trends in the volume

o f such s e c u r itie s outstanding and in the amounts o f in te r e s t accruing
thereon.

The a n a ly sis i s both presented n a tio n a lly , and broken down in

p a rt by the geographical lo c a tio n and type o f the issu in g u n its .
Data are presented both with resp ect to the gross amount o f ta x exempt s e c u r itie s outstanding and with resp ect to the amounts held by
governments, th e ir sin k in g, tru s t and investment funds, th e ir agencies,

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING- NEWSPAPERS,
Monday, September 19, 1938.
9-17-38

Press Service
No. 14-64

.

A detailed survey of securities exempt from the Federal income tax
outstanding as of June 30, 1937, has been completed by the Treasury Depart­
ment, in cooperation with the Bureau of the Census.

The securities covered

are of two classes? those the interest on which is exempt from the normal
Federal income tax only —
securities —

generally referred to as partially tax-exempt

and those the interest on which is exempt from the surtax

as well as the normal tax —

generally referred to as wholly tax-exempt

securities.
Summary statistics with respect to the estimated outstanding amounts
of both of these classes of securities are published regularly in the
Annua,! Report of the Secretary of the Treasury.

The estimates relating to

June 30, 1937, contained in the present survey, wore first published in
summary form in the Annual Report for 1937, released in January, 1938.
The present survey, consisting of 113 pages#, includes a detailed
analysis of the amount of tax-exempt securities estimated to be outstanding
on June 30, 1937, and of the annual amount of interest accruing on such
securities*

The survey also contains an analysis of trends in the •volume

of such securities outstanding and in the amounts of interest accruing
thereon*

The analysis is both presented nationally, and broken down in part

by the geographical location and type of the issuing units.
Data are presented both with respect to the gross amount of tax-exempt
securities outstanding and with respect to the amounts held by governments,
their sinking, trust and investment funds, their agencies, and by Federal

- 2 -

Reserve banks, none of which is in a position to take advantage of the taxexempt fea-tures of such securities*
A large portion of the information dealing with State and local debt
presented in the present report is compiled in much greater detail decen­
nially by.the Bureau of the Census, the latest compilation applying to the
year 1932.

The present report, applying to the year 1937, half-way between

the census years 1932 and 1942, is believed to fill the need for an inter­
censal estimate of State and local debt operations.
There is appended to the report a memorandum summarizing the avail­
able data with respect to the ownership of tax-exempt securities by private
investors*
The report has not been printed for general distribution, but a few
copies are available for public officers and for publications which wish
to make use of the data.
— oOo

HRB88 RELEASE

The Coramiasioner of Customs today announced that preliminary
report« «how imports of 660»636 squares of red cedar shingles from
>
Canada» under the quota provisions of the Canadian Trade Agreement,
during the period July 1 to September 17» 1938*
These importations represent 99.5 percent of the quota
astabliehed in Executive Order No* 7946» of August 9» 1936» which
limits importations of this commodity to 864,881 squares during the
last six months of the calender year 1938.

m .

castor

(Attention of Mr* Schwarz, Room 389» Treasury Building)

JR CM THE COIgilSSIOKSR (F CUSTOMS:
There is attached for immediate release a tabulation showing
imports of red cedar shingles from Canada» under the quota provisions
of the Canadian Trade Agreement, during the period July 1 to
September 17» 1938*
When the release has been mimeographed , please have 145 copies
forwarded to Miss

JU 9/19/38

Henry, Room 415» Washington Building«

TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE,
Monday, September 19» 1938.

Pross Service
^°* 14r-65

The Commissioner of Customs today announced that preliminary
reports show imports of 860,636 squares of red cedar shingles from
Canada, under the quota provisions of the Canadian Trade Agrooment,
during the period July 1 to September 17, 1938.
Those importations represent 99.5 percent of the quota es­
tablished in Executive Order No 7946, of August 9, 1938, which limits
importations of this commodity to 864,881 squares during the last six
months of the calendar year 1938.

— oOo—

fm a m a
wàmmmm
wm w m m n § mamma

Fra ss Seme#

itospapsbs,

Tuosday, Septembar 20. 1936»
9/19/38

fbe Searstary of thè Troairary announced last arening that thè
tendere f o r #100,000,000, or thereaboute, of fi«*day Treasury Mila, te
he dated Septeabar £1 «ad te «etere Decomber £1, 1958, ifeleh «ere of farad
on Sept ember 16, «ere open ed et thè federai Resene beale» on Septeabar 19»
’The datali» of thle leene «re ee follo«» :
fatai a p p i led far
fatai accspted

*

#£60,895,000
100,065,000

Rango of accepted bidet
High

lm
Ararago prie»

* 99*980
* 99.969
» 99.995

fluirai eat rate appreseInately 0*09$ peroaat
a
«
»
0.123
*
*
*
*
0.106

(49 pereeat of thè amount bld ¿Or et thè lo« prie# «ae acoeptad)

TREASURY DEPARTMENT
Washington
Press Service
No. 14-66

EOR RELEASE, MORNING- NEWSPAPERS,
Tuesday, September 20, 1938.
m sm r~
i

The Secretary of the Treasury announced last evening that the tenders
for $100,000,000, or thereabouts, of 91-day Treasury bills, to be dated
September 21 and to mature December 21, 1938, which were offered on September
16, were opened at the Federal Reserve banks on September 19.
The details of this issue are as follows:
Total applied for
Total accepted

m $260,895,000
-

100,043,000

Range of accepted bids:
High
Low
Average price

99.980 Equivalent rate approximately 0.079 percent
n
it
0.123
M
99.969
I
ir
ti
0.106
»
m 99.973
1

(47 percent of the amount bid for at the low price wa,s accept ed)

-— oOo—

were most suitable for research on spontaneous lung cancer*

Still other

hybrids were found to be best adapted as test animals when it was desirable
to ascertain whether chemicals, such as coal-tar derivatives, were causes of
cancer*

All the strains investigated were found to have outstanding character­

istics conducive to tumor growth, however, a factor which should be of great
assistance to subsequent cancer investigators.
Guinea-pigs, white mice and rats have generally been employed as test
animals in this work. Through years of research, however, the mice have proved
the best **guinea-pigs" for several reasons.

First, they are easy to handle.

Then, too, from the standpoints of original cost, maintenance, and amount of
space necessary for them to occupy in laboratories, they are most economical.
Furthermore, they are highly susceptible to the implantation and spontaneous
development of malignant tumors.

Finally, their ability to propagate rapidly

makes them ideal for studies in genetics.
Thus, by using mice, the scientist is able to follow physiological condi­
tions through several generations.
a year.

Laboratory mice average about four litters

In a quarter of a century, one foremost cancer investigator has made

genetic observations through more than one hundred generations of mice.

In the

case of the human being, on the other hand, even the most long-lived scientist
is permitted to observe only three generations at most.

Beynnd this, he would

be forced to fall back for his information upon what may have been compiled by
way of vital statistics.
when available.

These are not always available,nor entirely reliable

Furthermore, if available at all, they may prove not to be

of the type essential the pursuit of the specific study.
A

TREASUKÏ DEPARTMENT
U.S.Public Health Service
Washington

FOR RELEASE

,

7

When mice and men meet in Science*s pursuit of cancer problems, the
genealogy of both is important.

In the case of the mice, however, it is

more than likely that their family tree will have been made to order.
"When performing investigations involving cancer study,"
Dr. H. B. Andervont, Senior Biologist of the United States Public Health
U
Service i"ix is essential to use experimental animals
In most experiments,

J

those animals must be used which are susceptible to the kind of cancer the
investigator wishes to study.M
Since such animals do not always exist in nature, it often becomes a
part of the business of Science to "create" them.

Thus, inbreeding and

cross-breeding is resorted to, under strictest laboratory surveillance.

To

a hair, literally, the exact ancestry of test-animals produced is known;
their size, color, and almost every physical characteristic can be predicted
in advance.
In his recent investigations ("Susceptibility of Mice to Spontaneous,
Induced, and Transplantable Tumors", Public Health Reports, September 16,
193S), Dr. Andervont made a comparative study of eight strains of white mice
in order to discover the salient characteristics of the various hybrids when
subjected to certain experimental procedures in cancer study.

Some of the

strains utilized were deloped as long ago as 1909, although the majority
have been in existence only about twenty years.
It was found, according to the report, that some strains were suitable
for studies relating to spontaneous breast tumors, for example; that others

TREASURY DEPARTMENT
U.S. Public Health Service
Washington
Press Service
No. 14r-67

When mice and men meet in Science's pursuit of cancer problems, the
genealogy of both is important.

In the case of the mice, however, it is

more than likely that their family tree will have been made to order
W h e n performing investigations involving cancer study," Dr. H. B
Andervont, Senior Biologist of the United States Public Health Service,
said today, "it is essential to use experimental animals.

In most experl

meats, those animals must be used which are susceptible to the kind of
cancer the investigator washes to study."
Since such animals do not always exist in nature, it often becomes
a, part of the business of Science to "create" them.

Thus, inbreeding and

cross-breeding is resorted to, under strictest laboratory surveillance* To
a hair, literally, the exact ancestry of test-animals produced is known?
their size, color, and almost every physical characteristic can be predicted
in advance.
In his recent investigations ("Susceptibility of Mice to Spontaneous,
Induced, and Transplantable Tumors", Public Health Reports, September 16,1938)
Dr. Andervont made a comparative study of eight strains of white mice in order
to discover the salient characteristics of the various hybrids when subjected
to certain experimental procedures in cancer study.

Some of the strains

utilised were developed as long ago as 1909, although the majority have been
in existence only about twenty years.
It was found, according to the report, that some strains were suitable
for studios relating to spontaneous breast tumors, for example;

that others

2

were most suitable for research, on spontaneous lung cancer.

Still other

hybrids were found to be best adapted as test animals when it v/as desirable
to ascertain whether chemicals, such as coal-tar derivatives, were causos
of cancer.

All the strains investigated wore found to have outstanding

characteristics conducive to tumor growth, however, a factor which should
be of great assistance to subsequent cancer investigators.
Guinea-pigs, white mice and rats have generally been employed as test
animals in this work.

Through years of research, however, the mice have proved

the best Hguinea-pigs" for several reasons.

First, they are easy to handle.

Then, too, from the standpoints of original cost, maintenance, and amount of
space necessary for them to occupy in laboratories, they are most economical.
Furthermore, they arc highly susceptible to the implantation and spontaneous
development, of malignant tumors.

Finally, their ability to propagate rapidly

makes them ideal for studies in genetics.
Thus, by using nice, the scientist is able to follow physiological con­
ditions through several generations.

Laboratory mice average about four litters

a year. In a quarter of a century, one foremost cancer investigator has made
genetic observations through more than ono hundred generations of nice. In the
case of the human being, on the other hand, even the most long-livod scientist
is permitted to observe only three-generations at most.

Beyond this, he would

be forced to fall back for his information upon what may have been compiled, by
way of vital statistics.

These are not always available, nor entirely reliable

when available.

Furthermore, if available at all, they may prove not to bo
to
of the type essential/the pursuit of the specific study.

— 0O0—

4

Customs Districts
Maine
Vermont
St* Lawrence
Massachusetts
Connecticut
Philadelphia
New York
Maryland
Rochester
Buffalo
Ohio
Michigan
Chicago
Duluth
Dakota
Montana
Oregon
Washington
Northern Border
San Francisco
Los Angeles
San Diego
Arizona
El Paso
San Antonio
Southern Border
Alaska
Hawaii
Puerto Rico
Florida
Other districts
Total

Maine
Vexmont
St* Lawrence
Massachusetts
Connecticut
Philadelphia
New York
Maryland
Rochester
Buffalo
Ohio
Michigan
Chicago
Duluth
Dakota
Montana
Oregon
Washington
Northern Border
San Francisco
Los Angeles
San Diego
Arizona
El Paso
San Antonio
Southern Border
Alaska
Hawaii
Puerto Rico
Florida
Other districts
Total
(1) Estimated

Number of Airplanes and Passengers Entering by
Airplanes at the Various Customs Districts
_____Fiscal Years 1951-1938, inclusive,_______
1931
1932
1933
1934
1935
1936
Airplanes
51
66
48
22
24
35
106
60
148
208
55
156
68
78
52
82
29
29
8
4
7
16
2
■ 3
404
396
321
341
380
295
V 1
178
349
240
171
155
185
18
16
20
18
13
19
430
376
150
76
117
96
1
18
6
3
2
17
844
429
409
338
537
399
8
58
14
9
21
9
1
648
372
324
139
477
773
2376
1950
1717
2032
1427
1870
•
1
53
259
156
1052
1763
636
1130
395
274
99
35
39
216
28
129
318
119
130
195
197
82
851
512
472
436
435
2320
2429
1572
1735
1425
975
78
61
49
114
219
354
10
352
154
248
222
225
246
1682
1319
1300
1234
1301
1227
2112
1534
1597
1573
1742
1837
6808
5913
4572
5049
5037
4844

102(1)
158
111
''-

207
104
155

Passengers
28
77
121
275
124
94
—
1

-

-

483

539

776

754

-

-

-

517
44
259

215
57
201

•
-

-

1937

19381

63
111
36
9

52 i
559
511
g1

7
371
-

38
319
24
132

52?
68 I
23 1
833 I
39 |
161!

-

9
368
40

1°
587 1
28 !

-

949
2476
-

161
248
24
5
426
864
558
49
347
1557
2511
5851

802
3146
m1
142
177
33
31
449
832
580
50
420
1611
2661
6639

49
454
55
11

55
345
56
25

119
231
51
10

99
1515
120
9
-

-

-

-

-

•

-

--

•

832

132
1081

348
1696

-

-

-

-

274
13
168

192
19
132

131
10
78

198
18
104

81
512
33
150

-

-

-

-

-

-

19
2345
105

3790
558
43
491
63
171

373
151

29
650
46

9
790
19

4
637
23

4
943
45

56
986
14

15
1787
79

-

-

-

-

-

-

-

-

2061
5131

3389
8501

2840
12168

-

-

1558
3756

697
2900

3595
18
670
3565
7848
133

4690
73
326
2359
7448
67

2597
90
374
2823
5884
52

108
1297
607
755
3083
5850
150

1632
4244
1
823
941
276
640
3811
6492
457

-

-

-

—

-

1160
8010
9303
20907

658
7872
8597
18945

1049
10019
11120
19847

1105
11217
12472
20729

1359
15802
17618
28354

-

520
2843

200
2407

-

-

649
578
66
307
2878
4478
894
48
1474
16608
19024
28633

650
497
62
11
3138
4358
1584
184
1449
22861
26078
38937

-

724
325
56
64
4501
5670
1879
276
1740
24114
28009
45847

for each fiscal year from 1931 to 1938, inclusive

Airplane traffic between the United States and foreign countries
showed a pronounced increase during the fiseal year 1938, it was announceaAby the Bureau of Custamsytuilii'yx
During the iaaot yea^ d ,639 planes arrived in the Uhited States,
or its outlying possessions, from foreign countries, an increase of

S',S S I
13*5 percent over the nuiufawft^during the preceding year
auttfeei* eg 'planss duiiiiwg««the "ftieeai?'

The number of airplane passengers entering the Uhited States
from abroad during efew fiscal -yeaiv 193

■>y£t2- «frtx-A

84?X exceeded
excee
that of the

previous fiscal year by 17.7 percent ¿and marked the seventh consecu­
tive year during which centlaMeSfe increases have taken place in the
'u> " f t * . Clujfcjl
number of airplane
ine passengers
pa5senders on international lines
half of
the passengers reported arrived in the Florida customs district,
23,882

t the port^Miami.

The Vermont customs district

showed the largest relative gain in the number of planes and -tier
rmmhfir nf nlrplnrir. passengers, five times as many planes and more
than six times as many passengers arriving in that district in 1938
as during the previous fiscal year.

The increased traffic at that

point was due to the extension of the Boston-Burlington line to
Montreal.
The establishment of the New York-Bermuda line in June^19
resulted in a large increase in the number of planes and airplane

OFFICE OF THE COMMISSIONER OF CUSTOMS

TO MR. GASTON
FROM THE COMMISSIONER OF CUSTOMS:

There is transmitted herewith a statement relative to
airplane traffic for the fiscal years 1931-1938, inclusive
which may be suitable for use as a Treasury press release.

Enclosure

OFFICE OF THE COMMISSIONER OF CUSTOMS

September 19, 19S8*

It will be appreciated if you will furnish the Bureau
25 copies of the attached press release and accompanying table
when it is complete.

Deliver same to Mr. C. A. Freeman, Room

415, Washington. Building.

TREASURY DEPARTMENT
Washington
POE RBXEASE, AFTERNOON NEWSPAPERS,
Friday, September 23, 1938.

Press Service
No. 14-68

9 -2 0 -3 8

Airplane traffic between the United States and foreign countries showed
|pronounced increase.during the fiscal year 1938, it was announced today by
the Burean. of Customs.
During the twelve-month period, 6,639 planes arrived in the United States,
or its outlying possessions, from foreign countries, an increase of 13.5 percent
over the 5,851 arrivals during the preceding fiscal year.
The number of airplane passengers entering the United States from abroad
during fiscal 1938 was 45,847 and exceeded that of the previous fiscal year by
17.7 percent.

This marked the seventh consecutive year during which increases

have taken place in the number of airplane passengers on international lines
terminating in the United Stales.

More than half of the passengers reported

arrived in the Florida Customs district, 23,882 clearing at the port of Miami.
The Vermont Customs district showed the largest relative gain in the number of

- 2

The number of passengers carried per plane has risen to a marked degree
during the past eight years.

In 1930 less than three passengers par..plane were

reported, while in 1938 the average per plane was close to seven.
The following table presents a statement of the number of planes and the
number of passengers arriving by plane in each Customs district for each fiscal
year from 1931 to 1938, inclusive:

1931

1932

1933

1934

1935

1936

1937

1938

35
156
29
16
3
295
185
19
96
17
399
9

63
ill
36
9

52
559
51
6
527
68
23
233
39
161
10
587
28

Airplanes
Customs Districts
Maine
Vermont
St. Lawrence
Massachusetts
Connecticut
Philadelphia
New York
Maryland
Rochester
Buffalo
Ohio
Michigan
Chicago
Duluth
Dakota
Montana
Oregon
Washington
Northern Border
San Francisco
Los Angeles
San Diego
Arizona
El Paso
San Antonio

51
106
68
-

404

66
60
82
4

22
55
78
8

—

-

341

—
-*

349
18
430
—

396
-

—

172
16
376
-

240
20
150
1
6
409
8

-

2
380
-

1
171
18
117

M

648

372

324

3
338
9
1
139

2376

1950

1717

1427

244
58
-

18
429
14

—

48
148
52

—

-

—

—

—

—

—

24
208
29
7
W.
321
-

-

7
371
-

477

773

38
319
24
132
**
9
368
40
949

1870
1
259
395
129
197
444

2032

2476

156
274
28
82
435

161
248
24
5
426

142
177
33
31
449

1425

975

832

219

864
558
49
347
1557

580
50
420
1611

—

155
13
76
2
5-37
21
—

-

—

•*

-

802
3146
-

1052
99
318
851

1763
35
13.9
512

1130
39
130
436

53
636
216
195
472

Southern Border
Alaska
Hawaii
Puerto Rico
Florida

2320
78

2429

1735
49

1572
114

352
1682

154
1319

248
1300

225
1234

222
1301

354
10
246
1227

Other Districts

2112

1534

1597

1573

1742

1837

2511

2661

Total

6808

5913

5049

4572

5037

4844

5851

6639

—

61
—

—

-

1931

1932

<5

1934

1933

1935

1936

1937

1938

49
454
55
11
■■—
—
832

55
345
56
25

119
231
51
10

99
1515
120
9

132
1081
•«
•v
198
18
104

348
1696

15
1787
79
3339

3790
558
43
491
63
171
JM»
19
2345
105
—
2840

Passengers
Customs Districts
Maine
Vermont
St. Lawrence
Massachusetts
Connecticut
Philadelphia
New York
Maryl and
Rocnest er
Buffalo
Ohio
Michigan
Chicago
Duluth
Dakota
Montana
Oregon
Washington
Northern Border

102(1)
158
111
483
**
517
44
259
—

207
104
155
-*
—
539
■m

215
57
201
—

1558

29
650
46
—
697

3756

373
151

77
275
94
—
—

—
776
—
~
274
13
168
**.
9
790
19

—

754

m
192
19
132

—
131
10
78

81
512
33
150

520

4
637
23
—
200

1632

56
986
14
_
2061

2900

2043

2407

4244

5131

8501

12168

—
2597
90
374
2823

108
1297
607
755
3083

1
823
941
276
640
3811

649
570
66
307
2878

650
497
62
11
3138

724
325
56
64
4501

4478
894
48
1474
16608

5670
1879
276
1740
24114
28009
45847

San Francisco
Los Angeles
San Diego
Arizona
SI Paso
San Antonio

3595
13
670
3565

4690
73
326
2359

Southern Border
Alaska
Hawaii
Puerto Rico
Florida
Other districts

7848
133
1160
8010
9303

7448
67
658
7872
8597

20907

18945

Total
(i \ -r-rn .

28
121
124
1

5884

5850
150
52 ’
—
—
1049
1105
10019
11217

4
943
45

6492
457
.

—

11120

12472

1359
15802
17610

19847

20729

28354

,

— oOo—

19024

4358
1584
104
1449
22861
26078

28633

38937

-

2

-

cavity indicated a decayed tooth* The breakages recorded were those most
readily found on a careful clinical dental examination.

The extent of

decay in any single tooth was measured in terms of tooth surface involved,
and when such areas extended from one surface to others, the involved
surfaces counted separately as decay. The remaining roots were considered
as equal to five decayed surfaces.
Records for filled teeth were made in a similar manner: filled
surfaces were counted as past decays. Full crowns, of which very few
were encountered, were considered as five surfaces affected by past decays.
All of these procedures were designed to make possible the
measurement and tabulation of former decay.

*******

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE, $ ^ *
Friday, September 23. 1938.

Age for age, girls have more teeth missing, filled or decayed
than boys.
this is not simply because they are girls, according
to Drs. Henry Klein and Carroll E. Palmer of the United States Public
Health Service. It is rather because a girl1s teeth are cut earlier
in life than a boy* s and have therefore been exposed longer at the same
age to wear, tear and germs. In the last analysis, however, the girls
show no greater susceptibility to dental decay than boys.
Drs. Klein and Palmer report their findings in the September
23rd issue (Vol. 53; No. 33) of Public Health Reports, the weekly
scientific publication of the Service, in fefee article^ "Sex Differences
in Dental Caries Experience in Elementary School Children."
Continuing their well-known dental studies with students
attending the municipal elementary schools of the small urban community
of Hagerstown, Maryland, the doctors gathered the present data from
examinations of 2,232 boys and 2,184 girls. All examinations were made
with plain mirrors and fine-pointed "pig-tail" explorers under favorable
lighting conditions.
Observations were made on all teeth present in the mouths. Iu
addition, extracted permanent teeth and those not yet cut were noted.
Tiny holes and cracks in which the explorer caught, but which after
careful inspection were not considered definitely decayed, were

noted

as separate items and not counted. Only the presence of an actual

TREASURY DEPARTMENT
U.S. Public Health Service
Washington

FOR RELEASE, AFTERNOON NEWSPAPERS,
Friday, September 23, 1938._______

Press Service
No. 14-69

9 -2 2 -3 8

Age for age, girls have more teeth missing, filled or decayed than
boys.
This is not simply because they are girls, according to Doctors
Henry Klein and Carroll E. Palmer of the United States Public Health Service.
It is rather because a girl*s teeth are cut earlier in life than a boy*s and
have therefore been exposed longer at the same age to wear, tear and germs.
In the last analysis, however, the girls show no greater susceptibility to
dental decoy than boys.
Doctors Klein and Palmer report their findings in the September 23rd
issue (Vol. 53; No. 38) of Public Health Reports, the weekly scientific publi­
cation of the Service, in an article entitled, ‘’Sex Differences in Dental
Caries Experience in Elementary School Children.“
Continuing their well-known dental studios with students attending the
municipal elementary schools of the small urban community of Hagerstown,
Maryland, the doctors gathered the present data from examinations of 2,232
boys and 2,184 girls.

All examinations were made with plain mirrors and fine-

pointed “pig-tail“ explorers under favorable lighting conditions.
Observations were made on all teeth present in the mouths.
extracted permanent teeth and those not yet cut were noted.

In addition,

Tiny holes and

cracks in which the explorer caught, but which after careful inspection were
not considered definitely decayed, were noted a,s separate items and not counted.
Only the presence of an actual cavity indicated a decayed tooth.

The breakages

recorded were those most readily found on a careful clinical dental examina­
tion.

The extent of decay in any single tooth was measured in terms of tooth

surface involved, and when such areas extended from one surface to others, the
involved-surfaces counted separately as decay.

The remaining roots were con­

sidered as equal to five decayed surfaces. Records for filled teeth were made in a similar manner: filled surfaces
were counted as past decays.

Full crowns, of which very few were encountered,

were considered as five surfaces affected "by past decays.
All of these procedures were designed to make possible the measurement
and tabulation of former decay.

— oQo~-

-

2

-

applied for, unless tlie 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 26, 1958

f 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

September 28, 1958____ ,
309
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,

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

TJo loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular Do, 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,

5 1'

.

StjmgiKxiaEXiitKxiadEa:

Sx3jdriddt^i[*xxiK

TREASURY DEPARTMENT

EOR RELEASE, MORNING- PAPERS

Friday, September 23, 1958.
jga&gfflMxM xxxxxxxxxxxxxxxxxx

x£x£t
The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100f000.OOP, or thei^bout&rThey will he

x£jix
91-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,
onMonday, September 26. 1958.

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated September 28, 1958» aud will
&xbc
mature on December 28, 1938 , and on the maturity date the face amount
jSp@§X

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^tmuidered*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' hot he used*—

Tenders will be accepted, without'cash deposit from i n c o r p o r ­
ated banks and trust companies and from responsible and r e c o g n i z e d
dealers in investment securities.

Tenders from,others muso he accom

panted by a deposit of 10 per cent of the fane amount of Treasury hi

FOR RELEASE, MORNING PAPERS,
Friday, September 23, 1938.

TREASURY DEPARTMENT

The Secretary of the Treasury gives notice that tenders are invited for
Treasury Dills to the amount of $100,000,000, or thereabouts.

They will bo

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 tho branches thereof,
up to two o*clock p.Li., Eastern Standard, tine, on Monday, Scot ember 26, 1938,
Tenders will net be received at the Treasury Department,' Washington.
Tho Treasury bills will be dated Septerber 28, 1938, and will nature on
December 28, 1938, and on the maturity date tho face amount will bo payable
without interest.

They Will bo issued in bearer form only, and in amounts or

denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity
valuó).
It is urged that tenders be made on tho printed forms «and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks or
bronchos upon application therefor.
No tender for an amount less than $1 ,000 will bo considered.
tender must be in múltiplos of $1,000,

Each

The price offered must oe expressed on

the basis of 100, with not moro 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 deaders in investment
securities.

Tenders from ethers must be accompanied by a deposit of 10 por cent

of tho face amount of Treasury bills applied for, unless tho tenders aro 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 September
26, 1938, all tenders received at the Federal Reserve Banks cr 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 follow­
ing 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 28, 1938.
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 inheritance t a x e s .

(Attention is invited to

Treasury Decision 4550, ruling that Treasury bills are not exempt from the
gift tax.)

$o loss from the sale or other disposition of the Treasury bills

shall be allo?;ed 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 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#
--0O 0--

"a c tiv a te d sludge" and aerated .

They in d ica te th a t in t h is process

the oxidation r a te s are much more rapid than those takin g place under
n atu ral conditions in polluted waters and streams because o f the
development o f a mass o f b a c te r ia .

I t was found, to o , th a t by th is

method o f treatm ent, f i f t y percent as much o f the sewage organic
m atter i s oxidized in fiv e hours as could be accomplished in fiv e days
by a era tin g sewage a lo n e .
In the r e s u lts presented a t th is tim e, evidence i s presented
in d ica tin g ad d itio n al fa c to r s which a f f e c t the r a te o f p u r ific a tio n .
This r a te i s shown to depend on the number o f b a c te r ia p resen t, on th eir
d is trib u tio n throughout the polluted w ater, and on the maintenance of
cond itions whereby they may grow in a i r .

Thus i t i s made evident that

by in creasin g the numbers of b a c te r ia which bring about the p u rificatio n ,
m aintaining a s u f f ic ie n t supply o f dissolved oxygen, and by establish in g
conditions which provide fo r continuous con tact between b a c te r ia ,
p o llu tio n p a r t ic le s , and dissolved oxygen throughout th e polluted water,

m

the r a te o f p u r ific a tio n may be very g re a tly in creased .

TREASURY DEPARTMENT
U. S . P u blic Health Service
Washington
f-.

IL f ~ 7 û
Something more than mere d istan ce i s required fo r running water
to r id i t s e l f o f im p u rities.
Careful stu d ies of sewage treatm ent, being made by the Stream
P o llu tio n In v e stig a tio n s lab orato ry o f the United S ta te s Public Health
S e rv ic e , a t C in cin n a ti, Ohio, show th a t the exten t o f p u r ific a tio n is
governed by speed, not d istan ce o f flow , fo r example; th a t the nature of
the p o llu tio n and p h y sical conditions under which the water e x is ts are
a ls o important f a c t o r s .
These p oints are brought out in P arts V II and V III o f ’’Studies
of Sewage P u rific a tio n ” , which are cu rre n tly appearing in Public Health
R eports, weekly s c i e n t i f i c p u b lica tio n o f the S e rv ic e .
Thus, i t has been proved th a t p u r ific a tio n proceeds about three
tim es as f a s t a t 86° F . as i t does a t

J$ 0

F . , and th a t in a rapid ly flow­

ing stream correspondingly g rea ter d ista n ces o f flow are required.

I t has

lik ew ise been demonstrated th a t t h is p u r ific a tio n depends prim arily on
the a c t iv it y o f b a c te r ia .
The treatm ent of sewage i s a problem o f major importance in
densely populated communities, and what i s c a lle d the »activ ated sludge
p rocess” o f sewage treatm ent i s used e x te n siv e ly .

By t h is process, a ll

sewage i s both »aerated” (a g ita ted by blowing a i r bubbles through i t )
exposed to other sludge which has been deeded” with b a c te r ia .

and

Thus,

very high ra te s of oxid ation are obtained.
These stu d ies are based upon co n tro lled observations of the
chemical oxidation o f various q u a n titie s and stren g th s o f sewage

fed to

i°

TREASURY DEPARTMENT

U. S . P U B L IC HEALTH S E R V IC E

MEMORANDUM
date

from:

P h ilip S . Broughton

TO:

Mr. Schwarz

PSB:MG
Enclosure.

September 2 2 , 1938

TREASURY •DEPARTMENT
U.S. Public Health Service
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Saturday, September 24, 1938,
9-23-38

Press Service
No. 14^70

Something more than mere distance is required for running water to rid
itself of impurities.
Careful studies of sewage treatment, "being made "by the Stream Pollution
Investigations laboratory of the United States Public Health Service, at
Cincinnati, Ohio, show that the extent of purification is governed by speed,
npt distance of flow, for example? that the nature of the pollution and
physical conditions under which the water exists are also important factors*
These points are brought out in Parts YII and VIII of ‘'Studies of
Sewage Purification", which are currently appearing in Public Health Reports,
weekly scientific publication of the Service*
Thus, it has been proved that purification proceeds about three tines
as fast at 86° 3F* as it does at 48° P,, and that in a rapidly flowing stream
correspondingly greater distances of flow are required.

It has likewise been

demonstrated that this purification depends primarily on the activity of
bacteria.
The treatment of sewage is a problem of major importance in densely pop­
ulated communities, and what is called the "activated sludge process" of sewage
treatment is used extensively.

By this process, all sewage is both "aerated"

(agitated by blowing air bubbles through it) and exposed to other sludge which
has been "seeded" with bacteria.

Thus, very high rates of oxidation aro

obtained*
These studies are based upon controlled observations of the biochemical
oxidation of various quantities and strengths of sewage fed to "activated
sludge" and aerated.

They indicate that in this process the oxidation rates

— p —

are much more rapid than ■those taking place under natural conditions in
no1luted waters and streams "because cf the development of a mass of "bacteria*
It was found, too, that "by this method of treatment, fifty percent as much
of the sewage organic matter is oxidized in five hours as could "be accomplished
in five days "by aerating sewage alone.
In the results presented at this time, evidence is presented indicating
additional fa.ctors which affect the rate of purification,

Tnis rate is shown

to depend on the number of "bacteria present, on their distribution throughout
the polluted water, and on the maintenance of conditions whereby they nay
grow in air*

Thus it is made evident that by increasing the numbers of bacteria

which bring about the purification, maintaining a sufficient supply of dis­
solved oxygen, and by establishing conditions which provide for continuous
contact between bacteria, pollution particles, and dissolved oxygen throughout
the polluted water, the rate of purification nay be very greatly increased.

— oOo-—

An acute streptococcus infection is responsible for the disease in a
majority of cases.

What were called "growing pains'* in children, ill-defined,

fevers, and oven tonsilitis, are often early evidences of the disease.
There is no specific therapy yet developed for the infection itself, aid
the use of serums is still in the experimental .stage.

While infection is

present, good nursing, prolonged rest in bed, a simple diet, and appropriate
recommended therapy are the best advice»

If there isa. record of chronic

rheuna/tic heart disease, tonsilectomy is advised.

- 3 -

industrial classes where poor hygiene and damp, sunless, overcrowded livingquarters exist*

Crowding, exposure to wet and cold without sufficient pro­

tection, malnutrition, and fatigue are contributing factors to its greater
incidence in public as compeared to private schools.
In the matter of prevalence, it is estimated upon the best authority
that there are 840,000 active cases of the disease in the United States at
the present tine, and that 200,000 new cases are contracted annually.

In

certain seasons, one—fourth cf all available beds in New York hospitals are
occupied by patients suffering from rheumatic heart disease, and it is said
that 80 per cent of the total •organic heart-disease in children of a school
age is rheumatic.

It causes at least 40,000 deaths in the United States

annually.
The average duration of life in a rheumatic cardiac is fifteen years fror
the onset of infection.
than fifteen.

Some sufferers live fifty years with it, some less

The average age of death fron the disease is 30.

A fortunate

minority - about 25 to 35 per cent — of the patients afflicted, have only
minimal cardiac lesions which heal completely, and they live out a normal lifj
span.

The majority, however, die before they are 40.
'•Death from heart failure and complicating infections", said Dr. Paul

D. White, in his book Heart Disease,

"commonly overtakes the victim of

rheumatic heart disease in the second, fourth, or fifth decade of life after
many years - usually ten to twenty - cf partial crippling and restriction o
activity, and after a few years - usually two to five - of partial or
invalidism.

c o n p l e t j

Sometimes he nay live to old age and die a noncardiac death |

is careful, and if the heart lesions are slight."

I

-

2

-

"The tendency for fewer cases of rheumatic heart disease to be found in
colleges and universities with well-organized health services is unlike the
situation regarding pulmonary tuberculosis, " continues Dr. Hedley.

"Here,

approximately ten tines as many cases are detected in institutions with adequatel
facilities for diagnosis as in colleges .and universities depending upon physi­
cal examinations alone.

....

-.......... T

The tendency in the -mass diagnosis of rheumatic heart disease is toward
over-diagnosis.

This emphasizes the importance of careful physical examina­

tions not only for the purpose of detecting actual cases of the disease, but
also to rule out functional conditions frequently mis-diagnosed as organic
heart disease.

Background:
Rheumatic heart disease is an extremely Important public health problem,j
due to its initial infectiousness, its prevalence, age distribution, extreme
chronicity, influence on industry and the home, rejection for military service,
and relatively early ages at which it causes death.
It results in 15-40 per cent of all cases of heart disease, depending onj
the locality, for climate is a factor in its incidence.

In the cold, wetter

seasons, and in the colder, wetter parts of the temperate zone, its prevalence
is greater.

There are five to ten times as many cases found in the northern
\

than in the southern states.

In Hew England states it is the commonest, being

found in 40 per cent of all heart disease cases - in 93 per cent of these
cases, in persons under 20 years of age.
In many thickly settled communities of the temperate zone throughout t J
world, it is the most serious of all types of heart disease; one of the
chief scourges —

it has been called "The Red Plague” —

and killing children and young adults

of youth, cripple

It is exceptionally heavy among

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

Press Service
No. 14-71

FOR RELEASE, MORNING NEWSPAPERS,
Sunday, September 25, 1938.
9-23-38

Rheumatic heart disease-, only lately accepted hy medical science as a
olinical entity, is the most common form of heart disease among persons of
college age» it is shown in a study completed today by,Dr. 0. F. Hedley, Passed
Assistant Surgeon, United States Public Health Service.
”It accounts for at least 90 per cent of detectable structural changes in
the heart,” said Dr. Hedley, ”notably valvular diseases, cardiac enlargement,
and adherent pericardium.

Rheumatic heart disease thus presents a definite but

limited problem among student bodies in institutions of higher education.”
Inquiries sent by Dr. Hedley to 213 colleges and universities with en­
rollments of at least 500 students, brought back replies from eighty-six insti­
tutions in thirty-six States and Hawaii.

A total of 1,207 cases of rheumatic

heart disease among 104,163 student health examinations were reported, an inci­
dence of 11*6 per thousand physical examinations.

This incidence bore an inverse

relationship to the number of examinations performed, and to the total enroll­
ment of the colleges and universities2 in institutions reporting less than 500
examinations., the incidence was 19.4 per thousand, while in the larger schools
reporting over 2,000 physical examinations, the incidence was only 6.4 per
thousand.
Among fourteen large universities with affiliated medical schools, the re­
ported incidence was only 6.4 per thousand, and it is believed that this rate
more nearly approximates the true incidence among college students.

According

to the report, this was because these institutions have well-organized health
services and are therefore in a better position to avail themselves of consult­
ants and modern diagnostic equipment*

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

Rheumatic heart disease, only lately accepted by medical science as
a clinical entity, is the most common form of heart disease among persons

ley, Passed Assistant Surgeon,

Public Health Service.

”It accounts for at least 90 percent of detectable structural changes
” Hmgé
aay# Dr. Hedley, ”notably valvular diseases, cardiac enlargement,
in the heart,”

and adherent pericardium.

Rheumatic heart disease thus presents a definite

but limited problem among student bodies in institutions of higher education.”

Inquiries sent by Dr. Hedley to 213 colleges and universities with
enrollments of at least 500 students, brought back replies from
in thirty-six States and Hawaii.

A total of 1,207 cases of rheumatic

heart disease among 104-,163 student health examinations were reported, an
incidence of 11.6 per thousand physical examinations.

This incidence bore

an inverse relationship to the number of examinations performed, and to
the total enrollment of the colleges and universities: in institutions re­
porting less than 500 examinations, the incidence was 19*4- per thousand, while
in the larger schools reporting over 2,000 physical examinations, the
incidence was only 6.4 per thousand.
Among fourteen large universities with affiliated medical schools,
the reported incidence was only 6.4- per thousand, and it is believed that
this rate more nearly approximates the true incidence among college students.
According to the report, this was because these institutions have wellorganized health services and are therefore in a better position to avail

-

2

-

themselves of consultants and modern diagnostic equipment.
MThe tendency for fewer cases of rheumatic heart disease to be found
in colleges and universities with well—organized health services is unlike
the situation regarding pulmonary tuberculosis," continues Dr. Hedley. "Here,
approximately ten times as many eases are detected in institutions with
adequate facilities for diagnosis as in colleges and universities depend­
ing upon physical examinations alone.
The tendency in the mass diagnosis of rheumatic heart disease is
toward over-diagnosis.

This emphasizes the importance of careful physical

examinations not only for the purpose of detecting actual cases of the
disease, but also to rule out functional conditions frequently mis­
diagnosed as organic heart disease.
Background:
Rheumatic heart disease is an extremely important public health
problem, due to its initial infectiousness, its prevalence, age distribu­
tion, extreme chronicity, influence on industry and the home, rejection for
military service, and relatively early ages at which it causes death.
It results in 15-4-0 percent of all cases of heart disease, depending
on the locality, for climate is a factor in its incidence.

In the cold,

wetter seasons, and in the colder, wetter parts of the temperate zone, its
prevalence is greater.

There are five to ten times as many cases found in

the northern than in the southern states.
commonest, being found in

U0

In New England states it is the

percent of all heart disease cases - in 93

percent of these cases, in persons under 20 years of age.

-3 In many thickly settled communities of the temperate zone throughout
the world, it is the most serious of all types of heart disease; one of
the chief scourges — it has been called "The Red Plague" — of youth,
crippling and killing children and young adults.

It is exceptionally

heavy .among industrial classes where poor hygiene and damp, sunless,
overcrowded living-quarters exist. Crowding, exposure to wet'and cold
without sufficient protection, malnutrition, and fatigue are contribut­
ing factors to its greater incidence in public as compared to private
schools.
In the matter of prevalence, it is estimated upon the best authority
that there are 84-0,000 active cases of the disease in the United States
at the present time, and that 200,00 new cases are contracted annually.
In certain seasons, one-fourth of all available beds in New York hospitals
are occupied by patients suffering from rheumatic heart disease, and it
is said that 80 percent of the total organic heart disease in children of
a school age is rheumatic.

It causes at least 4-0,000 deaths in the

United States annually.
The average duration of life in a rheumatic cardiac is fifteen years
from the onset of infection.
less than fifteen.

Some sufferers live fifty years with it, some

The average age of death from the disease is 30. A

fortunate minority - about 25 to 35 percent — of the patients afflicted,
have only minimal cardiac lesions which heal completely, and they live out
a normal life span.

The majority, however, die before they are 4-0.

- A-

"Death from heart failure and complicating infections", says Dr.
Paul D. White, in his book Heart Disease « "commonly overtakes the victim of
of rheumatic heart disease in the second, fourth, or fifth decade of life
after many years - usually ten to twenty - of partial crippling and
restriction of activity, and after a few years - usually two to five —
of partial or complete invalidism.

Sometimes he may live to old age

and die a noncardiac death if he is careful, and if the heart lesions are
slight."
An acute streptococcus infection is responsible for the disease in
a majority of cases. What were called "growing pains" in children, illdefined fevers, and even tonsilitis, are often early evidences of the
disease.
There is no specific therapy yet developed for the infection itself,
and the use of serums is still in the experimental stage. While infection
is present, good nursing, prolonged rest in bed, a simple diet, and ap­
propriate recommended therapy are the best advice.

If there is a record

of chronic rheumatic heart disease, tonsilectomy is advised.

-3 During the period covered by the study reported in the latter
section of the bulletin, it is shown that about 60 percent of the 3,191
registered hospitals under analysis (which included 34- percent of the
total capacity of 1,143,131 beds) maintained a continuous existence. The
remaining number included many that were newly established and 565 insti­
tutions that were discontinued.
The loss of facilities revealed by the data, according to the
authors, is actually more apparent than real, however. Those institutions
which failed to survive were, for the most part, small ones, privately
owned, and located in populous counties comparatively well supplied with
hospital facilities. This loss, too, was more than offset by the 213,512
increase in the total number of beds available in the years studied. Fur­
thermore, each medical type of hospital showed an appreciable increase in
number of beds. The most decided expansion occurred in mental hospitals,
particularly from 1932-34; the least expansion, in institutional hospitals.
Except in the case of the latter group, the increase of beds in each

m ed ical

type substantially exceeded the rise in population.
To those interested in supply and demand as it applies to

h o s p it a l

facilities, and to those seeking a more adequate distribution of such
accommodations, the publication presents much valuable data.

Inclusion of

a number of charts and tables augments its usefulness as a reference

m a teria l

Mental and tuberculosis hospitals are fifty percent tax-supported. I
More than half a million beds are provided by the 597 institutions for
patients suffering from nervous and mental disorders, which would indicate
their average size is large. Even so, according to the bulletin, they are
often filled to more than their rated capacity. One-third of them have
1,000 or more beds each, while &U percent of the total bed capacity is

located in hospitals of this size.
Tuberculosis sanitoria are of moderate size. Figures indicate
the total bed capacity of the 506 registered institutions of this type is
about 71,000. Nearly half of all tuberculosis hospitals and beds are
maintained by cities and counties. Although one-eighth of the hospitals
are State-owned, only about 25 percent of the beds available are included
in these State institutions. Approximately 30,000 additional tuberculosis
beds are located in special units of other hospitals.
The Southern States have relatively few hospital facilities of all
types. States of the Mountain and Pacific areas, however, and those of the
middle Atlantic Seaboard rank much more favorably when accommodations and
population are compared.

Proportionately more facilities are available

in counties which are wealthy and populous than in those which are poor
and sparsely settled.
I

Section I of the bulletin, "Selected Characteristics of Hospital
Facilities in 1936", gives a panoramic view of the medical type, size, control
and use of hospitals which operated in that year, and the relationship
their facilities to population groups.

of

The second section, "Trends in

Hospital Development, 192S-36", determines the extent to which such factors I
as control, size, and location have, during the indicated span,
the stability of existence.

m o tiv a te d

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

F O R - A f A B M M ; RELEASE.

Press Service
No.

Although there are approximately 4-51>000 beds and 53 >000
bassinets in the 4>S41 registered general and special hospitals in the
United States, according to a bulletin
Public Health Service, * one-fourth of these hospitals have less than
twenty-five beds and one-half, less than fifty.
Significantly the larger hospitals furnish more facilities
However, according to this publication, they likewise, render a greater
amount of service than do the smaller institutions, both from the aspect
of total daily census, and from the relation of volume of service to
capacity.
Non-profit organizations (fraternal, church, and other non­
profit associations) lead the country as sponsors of these general and
special hospitals.

They control about half the total number.

Thirty-two

percent are privately owned; 12 percent are managed by States, cities or
counties.

The Federal Government maintain the remaining 5 percent.

In

general, these latter are large institutions; the non-profit, moderate
sized; while the privately owned are smaller than those under any other
control.

State and local governmental hospitals are used to a higher

degree than those managed by any other type of agency.

Maternity service

is a more important feature of non-profit hospitals than of any other
group, but size of hospitals apparently had no uniform relation to the
number of births which occurred therein.
* Public Health Bulletin #243: «Hospital Facilities in the United States",
by Senior Surgeon J. W. Mountin. This publication includes data compile
by the Division of Public Health Methodsppof the National Insti^u^e
^
in connection with the National Health Inventory completed early in 193&*

■TREASURY DEPARTMENT
U.S. Public Health Service
Washington

FOR RELEASE, AFTERNOON NEWSPAPERS,
Monday, September 26, 1938,
9-23-38

Press Service
No. 14-72
••

.-

Although there are approximately 451,000-beds and 53,000 bassinets in
the 4,841 registered general and special hospitals in the United States,
according to a bulletin released today by the United States Public Health Ser­
vice,* onc-fourth of these hospitals have less than twenty-five beds and onehalf, less than fifty.
Significantly the larger hospitals furnish more facilities.

However,

according to this publication, they likewise, render a greater amount of ser­
vice than do the smaller institutions, both from the aspect of total daily
census, and from the relation of volume of service to capacity.
Non-profit organisations (fraternal, church, and other non-profit
associations) lead the country as sponsors of these general and special hospi­
tals.

They control about half the total number.

Thirty-two per cent are

privately owned; 12 per cent are managed by States, cities or counties.
Federal Government maintains the remaining 5 per cent.

The

In general, these latter

are large institutions; the non-profit, moderate sized; while the privately
owned are smaller than those under any other control.

State and local govern­

mental hospitals are used to a higher degree than those managed by any other
type of agency.

Maternity service is a more important feature of non-profit

hospitals than of any other group, but size of hospitals apparently had no
uniform relation to the number of births which occurred therein.
* Public Health Bulletin #243: ^Hospital Facilities in the United States,0 by
Senior Surgeon J. W, Mountin. This publication includes data compiled by the
Division of Public Health Methods of the National Institute of Health, in
connection with the National Health Inventory completed early In 1936.

v 2Mental a.nd tuberculosis hospitals are fifty per cent tax-supported*

More

than half a million beds are provided by the 597 institutions for patients suf­
fering from nervous and mental disorders, which would indicate their average
size is large.

Even so, according to the bulletin, they are often filled to

more than their rated capacity.

One-third of them have 1,000 or more beds each,

while 84 per cent of the total bed capacity is located in hospitals of this size.
Tuberculosis sanitoria are of moderate size.

Figures indicate the total

bed capacity of the 506 registered institutions of this type is about 71,000*
Nearly half of all tuberculosis hospitals and beds are maintained by cities and
counties.

Although one-eighth of the hospitals are State—owned, only about 25

per cent of the beds available are included in these State institutions*

Approx­

imately 30,000 additional tuberculosis beds are located in special units of
other hospitals*
The Southern States have relatively few hospital facilities of all types*
States of the Mountain and Pacific areas, however, and those of the middle
Atlantic Seaboard rank much more favorably when accommodations and population are
compared*

Proportionately more facilities are available in counties which are

wealthy and populous than in those which are poor and sparsely settled*
Section I of the bulletin, ’’Selected Characteristics of Hospital Facili­
ties in 1936”, gives a panoramic view of the medical type, size, control, and
use of hospitals which operated in that year, and the relationship of their
facilities to population groups*

The second section,' ’’Trends in Hospital Develop­

ment, 1928-36” determines the extent to which such factors as control,* size, and
location have, during the indicated span, motivated the stability of existence*
During the period covered by the study reported in the latter section of
the bulletin, it is shown that about 60 per cent of the 8,191 registered hospitals
under analysis (which included 84 per cent of the total capacity of 1,148,131 beds)
maintained a continuous existence.

The remaining number included many that were

3

newly established and 565 institutions that were discontinued.
The loss of facilities revealed by the data, according to the authors,
is actually no re apparent than real, however.

Those institutions v/hich failed

to survive were* for the most part, snail ones, privately owned, and located
in populous counties cooperatively well supplied with hospital facilities.
This loss, too, was more than offset by the 218,512 increase in the total
number of bods available in the years studied.

Furthermore,_each medical type

of hospital showed an appreciable increase in number of beds.

The most de­

cided expansion occurred in mental hospitals, particularly from 1932-34; the
least expansion, in institutional hospitals.

Except in the case of the latter

group, the increase of beds in each medical type substantially exceeded the
rise in population.
To those interested in supply and demand as it applies to hospital
facilities, and to those seeking a more adequate distribution of such accomo­
dations, tho publication presents much valuable data.

Inclusion of a number

of charts and tables augments its usefulness as a reference material.
— oOo—

TREASURY DEPARTMENT

Washington
Press Service

POR IMMEDIATE RELEASE
^ k iñ ^ y

7 </--? 3

The Secretary of the Treasury today announced that His
Excellency, Mr. D. Sicilianos, Minister of Greece, transmitted to
him through the Department of State on September 20, 1938» a check
drawn by the Federal Reserve Bank of New York at the direction of
the Bank of Greece for account of the Greek Ministry of Finance, to
the order of the Secretary of the Treasury in the amount of $87»l6S,
representing payment by the Greek Government to the Government of
the United States of

of the semi-annual interest amounting to

$217,920 due on May 10, 193^ on the

loan of 1929 made to the

Greek Government by the United States under the agreement of May 10,
1929.
This amount has been received by the Treasury in the same
manner as the previous payments made by the Greek Government to the
United States on account of the amounts due during the period since
1932 were received by the United States, namely, without prejudice
to the contractual rights of the United States which are set forth
in Part II of the debt agreement of May 10, 1929» and in accordance
with the position of the United States as stated in the note
addressed by the Secretary of State to the Greek Minister at
Washington on February S, 193&*

0O0-

TREASURY DEPARTMENT
Accounts and Deposits

MR. HEFFELFINGER

TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Monday, September 26, 1938.

Press Service
No. 14-73

The Secretary of the Treasury today announced that His Excellency,
Mr. D. Sicilianos, Minister of Greece, transmitted to him through the De­
partment of State on September 20, 1938, a check drawn by the Federal
Reserve Bank of New York at the direction of the Bank of Greece for account
of the Greek Ministry of Finances to the order of the Secretary of the
Troasury in the amount of $87,168, representing payment by the Greek Govern­
ment to the Government of the United States of 40$ of the semi-annual inter­
est amounting to $82.7,920 due on May 10, 1938, on the 4$ loan of 1929 made
to the Greek Government by the United States under the agreement of May 10,
1929.
This amount has been received by the Treasury in the same manner
as the previous payments made by the Greek Government to the Unitod States
on account of the amounts due during the period since 1932 were received
by the United States, namely, without prejudice to the contractual, rights
of the United States which are set forth in Part II of the debt agreement
of May 10, 1929, and in accordance with the position of the United States
as stated in the note addressed by the Secretary of State to the Greek
Minister at Washington on February 8, 1936*

— oOO1

TEtASOitT DSPaRTIm m /

mmm&sm
for

m m m t $ wrnim

4

h b ib p a p ir s ,

press s e m e «

Tuesday, September 27« 1938*
9/26/38

Th® S acretary o f the Treasury aimounced l a s t evenlng th at the
tend er* for # 100,000,000, e r there& beuts, o f 91-day Treasury b i l l s f to
ba datad September 28 and to matur® Dacember 28, 1 9 8 8 , whleh war® offered
on September £ 5 , wäre opaned a t the Federal Reserve banke on September 26.
The d et& ils o f t b l s Issu a are as fo llo w e:
T o tal applied fb r
T o ta l aoeeptad

*
•

# 279,929,000
1 0 0 ,0 8 8 ,0 0 0

Range o f aoeeptad b läss
Hl#
LOW
Avaraga prlea

* 99.987
~ 99.959
* 99*984

Squivalant rata approxim&tely 0.051 perc«&
*
*
*
0.162
■ I
*
*
*
0*142
" I

(28 pereant o f tba amount bld f o r a t tb a low p rle a was aeeaptad)

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, September 27, 1938,
9726/ 38 .

Press Service
No. 14-74

•The Secretary of the Treasury announced last evening that the
tenders for $100,000¿000, or thereabouts, of 91-day Treasury hills, to
he dated September 28 and to mature December 28, 1938, which were offered
on September 23, were opened at the Federal Reserve banks on September 26.
The details of this issue arc as follows:
Total applied for
Total accepted

- $279,925,000
- 100,026,000

Range of accepted bids:
High
Lôw
Average price

- 99.987 Equivalent rate approximately 0.051 percent
- 99.959
u
M
f
0.162
n
- 99.964
11
11
11
0.142
n

(26 percent of the amount bid for at the low price was accepted)

-5 in Texas and in the Pan-Handle and West Texas sections* Other states
not so severely affected include South Dakota, Arizona, Kansas,
New Mexico, Virginia, Idaho, Illinois, Iowa, North and South Carolina
and Colorado. About eighty-five percent of all the children born
and raised in Colorado Springs, Colorado, have these enamel defects
and about ninety percent in Amarillo, Texas.
In the rest of the world there are hundreds of endemic
areas. The situation is worst in the Argentine where there are over
200. Other areas are located in England, British Indies, Italy,
China, Japan, Canada (Alberta), Mexico, and Northern Africa (especially
Morocco, Tunisia and Algiers)•
Mottled enamel is definitely a water-borne disease. One
part of the fluoride in a million is toxic and will cause some degree
of the affection. Where there are over three parts of fluoride
concentration in the water studies show that 80 to 90 percent of
the children are affected. With six parts and over, 100 percent
are affected.
Adults, as such, are not affected; neither are children
past eight or nine, except in the case of third molars. The
permanent teeth (and in some instances the deciduous) are affected
only during the period of calcification. Incidentally, no race,
color or sex is immune.
It has been proved, incidentally, that the teeth of the
children in these areas offer no greater liability to dental caries
(cavities, decay) than do normally calcified teeth. In fact,
fewer caries have been noted where there are toxic amounts of
fluoride present in the water supplies of communities.

-4contained almost fourteen times as much fluoride as had been indicated
was necessary to cause the disease.

A few months after this survey

the community changed its water supply, running in a six inch pipe
from the nearby Saline River, which is practically free of fluoride.
The recent survey ty Dr. Dean shows that the production
of mottled enamel in Bauxite has been definitely halted.

It further

corroborates the truth of the statement made in 1928 after Oakley
had been surveyed:

”Mottled enamel is a water-borne disease.”

Results of this new survey indicate that of the fourteen
children (L4 and 1 5 years old) who had calcified their permanent
teeth while using the old deep well supply, all were affected,
generally to a marked degree.

In the 11, 12 and 13 year age group,

there were twenty-three children whose period of calcification over­
lapped the change in the water supply and consequently had used both
supplies in varying amounts.

It is interesting to note in this

connection that a veritable ”high water mark” shows on the teeth
of the children in this group.

Twelve of these twenty-three, or

more than half, were affected.
Of the forty-five children between six and ten born about
the time of or subsequent to the change in water supply, however,
only two showed evidence of mottled enamel, and these two were of
the mildest type.

—

Background: Distribution of this disease is world wide.
In the United States alone are 375 endemic areas located in twenty-six
states. Eighty-six percent of these areas are west of the Mississippi*
Ninety-four of them, or twenty-five percent of the total are located

\ v. oiuce tii'rtia ,rftutii<
1— 1 irrij information has been re—
ceived\thsrt a third town, Chetopa, Kansas, has voted to abandon its
original water supplies because toxic amounts of fluoride present
were badly affecting the teeth of its children. Incidentally, the
measure was brought about by common vote, but only after considerable
local resistance. Chetopa will now have to wait eight to ten years
to demonstrate the wisdom of its decision by resurvey

■lo­
calises this mottling of the enamel of the teeth of persons using
its water for cooking and drinking purposes while their teeth are
in the stage of calcification— that is, while the enamel is forming.
Teeth usually erupt showing a smooth, glossy, translucent
structure and are pale creamy-white in color.

Affected with fluorosis,

however, they exhibit a dull, opaque, challsy-white appearance, which
in many instances later takes on a characteristic brown stain, be­
coming worse with age.

In many advanced cases the surfaces of the

teeth become badly corrugated and pitted.
The town of Bauxite occupies a permanent place in mottled
enamel history.

It is a small, company-owned mining community of

about 1,800 people, twenty-five miles southwest of Little Rock,
established in 1901 to provide homes and a social environment for
the employees of an aluminum subsidiary located there.
The original domestic water supply of Bauxite came from
shallow wells and a few springs.
supplies became contaminated.

As the town grew these surface

A new water supply became necessary,

so in 1909 two deep wells were drilled.

Then six years later, one

of these wells, from partial caving in, went out of commission.

A

new deep well was drilled.
Even before this time, however, a report that the disease
was prevalent had caused steps to be taken to change the common
water supply.

In 1928 the community was surveyed and showed

practically 100 percent affection of mottled enamel, in general
of an unusually severe type.

The water being used by the citizens

-

2-

conseious of the defects in their children1s teeth. There seemed
good reason to connect this condition with the communal water supply.
A women*s civic league launched a campaign calling for a bond issue
to finance a new water supply.

Influential citizens of the town—

adults, let it be noted— opposed the issue; but in February, 1925,
after an examination of the public school children had been made by
Dr. Frederick S. McKay, Consultant with the Public Health Service,
and pioneer in mottled enamel studies, proving conclusively that the
water supply was the cause of the condition of the children*s teeth,
and after a number of authoritative public talks had been made, the
bond issue was put over.
j^Three or four miles away from the original warm springs
was located a cold spring used by a local family for a number of
years for its own supply. That family included four children— and
an examination of their teeth showed no evidence whatsoever of the
mottled enamel. Upon this evidence alone the new water supply was
selected, and on July 21, 1925> the first of Oakley*s new water
flowed into town.
jin 1933, & resurvey of the children of Oakley was made by
Dr. McKay and others. It provided evidence for the first time in
dental history that water had been the cause of the disease
Fluorine is the most active, chemically, of all the elements.
Abundant in soils, water and rocks at least a half a mile down in
the earth’s crust, it is universally present also in plant and
animal tissue.

Its super-abundance in certain wells and springs

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE dLifithiSt*'
Friday« Sep^emoer 30« 1938

* {/

y

I

In May, 1928, Bauxite, Arkansas, en masse, took literally
to the nearby Saline River in order to save the teeth of its children*!
It thus became the second community in the recorded history of this
country to abandon the use of an otherwise satisfactory common water
supply, solely to prevent endemic dental fluorosis ("mottled enamel”),
a disease causing permanent disfigurements among its youth*

Now, a decade later, a resurvey of the children of the town
made by Dr. H. Trendley Dean, Dental Surgeon of the U. S. Public Health
Service, and others (Public Health Reports, September 30) has proved
the wisdom of the move.
(The first town was Oakley, Idaho, in 1925.

During the

half-dozen years prior to that date the citizens of this small
agricultural community were becoming increasingly alarmed at the
condition of their children1s teeth.
appearance.

All presented a disfiguring

The townspeople knew neither the nature nor the cause

of the condition.

They did know, however, that the children outside

of town who met their own at school each day did not have this
trouble.

(About 1915 Oakleyfs citizens had begun to use water from
certain warm springs located in the hills about five miles from
town. Six or seven years later Oakley parents began to become

TREASURY DEPARTMENT
U.S. Public Health Service
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Friday, September SO, 1938.
9/28/38.
*
'
'

Press Service
No. 14-75

In May, 1928, Bauxite, Arkansas, en masse, took literally to the
nearby Saline River in order to save the teeth of its children*

It thus

became the second community in the recorded history of this country to
abandon the use of an otherwise satisfactory common water supply, solely
to prevent endemic dental fluorosis ("mottled enamel"), a disease causing
permanent disfigurements among its youth.
Now, a decade later, a resurvey of the children of the town made
by Dr. H* Trendley Dean, Dental Surgeon of the United States Public Health
Service, and others (Public Health Reports, September 30) has proved the
wisdom of the move*
The first town was Oakley, Idaho, in 1925*

During the half-dozen

years prior to that date the citizens of this small agricultural community
were becoming increasingly alarmed at the condition of their children*s
teeth.

All presented a disfiguring appearance.

The townspeople knew

neither the nature nor the cause of the condition.

They did know, however,

that the children outside of town who met their own at school each day did
not have this trouble#
About 1915 Oakley*s citizens had begun to use water from certain
warm springs located in the hills about five miles from town.

Six or seven

years later Oakley parents began to become conscious of the defects in their
children*s teeth.

There seemed good reason to connect this condition with

the communal water supply.

A women*s civic league launched a Campaign call­

ing for a bond issue to finance a new water supply.

Influential citizens

2

of the town-—adults, let it bo noted— opposed the issue;

but in February,

1925, after an examination of the public school children had been made by
Dr. Frederick S. McKay, Consultant with the Public Health Service, and
pioneer in mottled enamel studies, proving conclusively that the water
suPPly w&s the cause of the condition of the children’s teeth, and after
a number of authoritative public talks had been made, the bond issue was
put over.
Three or four miles away from the original warm springs was located
a cold spring used by a local family for a number of years for its own supply*
That family included four children— and an examination of their teeth showed
no evidence whatsoever of the mottled enamel.

Upon this evidence alone the

new water supply was selected, and on July 21, 1925, the first of Oakley’s
new water flowed into town.
In 1933, a resurvey of the children of Oakley was made by Dr. McKay
and others.

It provided evidence for the first time in dental history that

water had been the cause of the disease.
Fluorine is the most active, chemically, of all the elements. Abundant
in soils, wator and rocks at least a half a milo down in the earth’s crust,
it is universally present also in plant and animal tissue. Its supor-abundance
in certain wells and springs causes this mottling of the enamel of the teeth
of persons using its water for cooking and drinking purposes while their
teeth are in the stage of calcification— that is, while the enamel is forming#
Teeth usually erupt showing a smooth, glossy, translucent structure
and are pale creamy—white in color.

Affected with fluorosis, however, they

exhibit a dull, opaque, chalky-white appearance, which in many instances
later takes on a characteristic brown stain, becoming worse with age.

In

many advanced cases the surfaces of the teeth become badly corrugated and
pitted.

The town of Bauxite occupies a permanent place in mottled enamel
history.

It is a small, company-owned mining community of about 1,800

people, twenty-five miles southwest of Little Rock, established in 1901
to provide homes and a social environment for the employees of an aluminum
subsidiary located there.
The original domestic water supply of Bauxite came from shallow wells
and a few springs. As the town grew these surface supplies became contaminated*
A new water supply became necessary, so in 1909 two deep wells were drilled.
Then six years later, one of these wells, from partial caving in, went out
of commission.

A new deep well was drilled.

Even before this time, however, a report that the disease was prevarlent had caused steps to be taken to change the common water supply. In 1928
the community was surveyed and showed practically 100 percent affection of
mottled enamel, in general of an unusually severe type.

The water being

used by the citizens contained almost fourteen times as much fluoride as
had been indicated was necessary to cause the disease.

A few months after

this survey the community changed its water supply, running in a six-inch
pipe from the nearby Saline River, which is practically free of fluoride*
The recent survey by Dr. Dean shows that the production of mottled
enamel in Bauxite has been definitely halted.

It further corroborates the

truth of the statement made in 1928 after Oakley had been surveyed: '’Mottled
enamel is a water-borne disea.se. **
Results of this new survey indicate tha,t of the fourteen children
(14 and 15 years old) who had calcified their permanent teeth while using
the old deep well supply, all were affected, generally to a marked degree.
In the 11, 12 and 13 year age group, there were twenty-three children whose
period of calcification overlapped the change in the water supply and conse-

4

quently had used, both supplies in varying amounts.

It is interesting to

note in this connection that a veritable r,high water mark” shows on the
teeth of the children in this.group.

Twelve of these twenty-three, or

more than half, were affected.
Of the forty-five children between six and ten born about the time
of or subsequent to the change in water supply, however, only two showed
evidence of mottled, enamel, and. these two were of the mildest type.

(Note to correspondents - Since the completion of Dr. Dean*s
study, information has been received that a third town, Chetopa,
Kansas, has voted to abandon its original water supplies because
toxic amounts of fluoride present were badly affecting the teeth
of its children. Incidentally* the measure was brought about by
common vote, but only after considerable local resistance. Chetopa
will now have to wait eight to ten years to demonstrate the wisdom
of its decision by resurvey.)

Background: Distribution of this disease is world wide. In
the United States alone are 375 endemic areas located in twenty-six
states. Eighty-six percent of these areas are west of the Mississippi*
Ninety-four of then, or twenty—five percent of the total arc located
in Texas and in the Pan-Handle and West Texas sections. Other states
not so severely affected include South Dakota, Arizona, Kansas, Hew
Mexico, Virginia, Idaho, Illinois, Iowa, Horth and South Carolina and
Colorado. About eight-five percent of all the children born and raised
in Colorado Springs, Colorado, have these enamel defects and about ninety
percent in Amarillo, Texas.
In the rest of the world there are hundreds of endemic areas.
The situation is worst in the Argentine where there are over 200. Other
areas are located in England, British Indies, Italy, China, Japan, Canada
(Alberta), Mexico, and Northern Africa (especially Morocco, Tunisia and
Algiers).
Mottled enamel is definitely a water-borne disease. One part of
the fluoride in a million is toxic and will cause some degree of the
affection. Where there are over three parts of fluoride concentration
in the water studies show that 80 to 90 percent of the children are af­
fected. With six parts and over, 100 percent are affected.

5

Adults, as such, arc not affected; neither are children past
eight or nine, except in the case, of third molars. The permanent teeth
(and in some instances the deciduous) are effected only during the period
of calcification. Incidentally, no race, color or sex is immune.
'
r'
It has been proved, incidentally, that the teeth of the children
in these areas offer no greater liability to dental caries (cavities,
decay) than do normally calcified teeth. In fact, fewer caries have been
noted where there are toxic amounts of fluoride present in the water
supplies of communities.

oOo—

u removal of the placenta, in the failure to use aseptic techniques (sterile
drapes and rubber gloves), and in frequent vaginal examination and use of
forceps.

Taken as a group the younger physicians, those who graduated since

1925y tend to follow with slight variations the practices of the obstetric
specialists; physicians who graduated before 1925 > and in some instances the
doctors of osteopathy, tend to adopt practices which are employed by the
obstetricians with relative infrequency.

Although questionable, and even

dangerous procedures are spread widely over the total group of parturient
women, a relatively large share of the most serious defects in practice
fall upon poor women, those delivered at home, and those living in rural
communities.”

* -it- *

- 3 -

of Michigan*s babies. It was found that maternal care given by obstetricians
tends to be concentrated in the larger cities while in the rural areas the
service is mostly in the hands of the general practicioner, especially those
who graduated prior to 1915In general, women who are poor or who are on relief, women who
live in rural areas and those who have had other children, according to the
Michigan Committee on Maternal Care, ’’bear the brunt of the wide-spread
deficiency in prenatal services”.
In a study of the hospitalization, the Michigan Committee found that
those in the upper income brackets and those having their first baby are more
likely to have hospital care than women otherwise classified.

Nearly 60$ of

the mothers living in the larger cities are delivered in hospitals, while
less than 25$ of the rural women are afforded such service.

When it comes

to economic status, the figures show that hospitalization varies from 65$
among the well-to-do, 50$ among the middle class group, 33$ among the poor
to 28$ among those on relief.

The proportion of hospitalized mothers of

first babies is nearly double that of those who have previously undergone
childbirth.
It was found also that the technique employed in the handling of

labor and delivery varies widely and is related to certain characteristics
of the birth attendant, to the place of delivery (home or hospital), size

of the city, and the economic status of the mothers. The Committee stated,
"If the procedures adopted by specialists in obstetrics are taken to represent
nf

standards of good practice, serious defects appear in the practices ox many o
the birth attendants.

The most striking of these consist in the use of

pituitrin before delivery, in manual dilation of the cervix, in manual

-

2

-

and second, because of the magnitude of the problem, which robs the nation
annually of some 12,000 women in the prime of life at the height of their
usefulness to their families and to the nation.
Sepsis is the most important cause of maternal mortality and
accounts for approximately 4-0 percent of the deaths, according to Dr. Campbelll
Although it is largely preventable by adequate antenatal and postnatal medical
supervision and rigorously aseptic technique at delivery, no significant
decrease in the death rate from this cause has been achieved during the last
22 years for which records are available.

Deaths from toxemias of pregnancy

have decreased slightly but significantly in the last six or eight years.
According to the Michigan Committee, at least three-fourths of
the deaths occurring in the first month of life are caused by reasons either
natal or prenatal in origin.

The Committee also pointed out that in addition

to the unnecessary waste of maternal and infant life, much ill health in
terms of physical or mental abnormalities result from childbirth.
’’Many mothers and babies are permanently crippled from injuries
sustained during labor or suffer impairment of physical or mental health
from conditions incidental to pregnancy and labor; many babies are m alform ed
at birth.

There is conclusive evidence that much of this ill-health is

preventable•”
The Michigan study found that physicians attend 96.5$ of the
registered births in the State, the remaining 3*5$ being about equally
divided between obstetricians and a group of unspecified individuals who
are nurses, friends, or relatives.

Approximately one-half of the p h y s ic ia n s

in the State of Michigan are engaged in the practice of obstetrics, but
less than one-fourth of the total number of the doctors in the State handle
about 85$ of the births.

The other half deliver the remaining one-sixth

i

Wide divergencies in maternal care, together with serious
deficiencies in maternal service, were revealed in a survey on maternal

%

care in the State of Michigan made public today by the Maternal Health
Committee of the Michigan State Medical Society.
The study, which was conducted by the Michigan State Medical
Society, with the assistance of the United States Public Health Service,
constitutes an effort to determine the quality and distribution of maternal
health services rendered to Michigan women.

The data was based on approxi­

mately 21,000 birth certificates which represent the number of registered
births during the first quarter of 1936, and 10,000 detailed obstetric
histories used as a reasonably representative sample of these births.
The Michigan study is designed to assist the medical profession
f

and the general public to understand the complexity of the problem of maternal|
care with its economic implications and to suggest some of the directions
which attempts to improve maternal service must take.
In presenting the report, Dr. Alexander M. Gampbell of Grand
Rapids, Michigan, who is Chairman of the Maternal Health Committee of the
Michigan State Medical Society, stated:
”The United States practically leads the civilized world in the
rate of mortality attributable to childbirth.

As this knowledge has become

widespread, demands for correction have increased; first, because studies
ntablp
dealing with maternal deaths have shown that a majority of them are preve

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Sunday, October 2, 1938,_______
9-29-38

Press Service
No. 14 - 76

Wide divergencies in maternal care, together with serious deficien­
cies in maternal service, were revealed in a survey on maternal care in the
State of Michigan made public today by the Maternal Health Committee of the
Michigan State Medical Society.
The study, which was conducted by the Michigan State Medical Society,
with the assistance of the United States Public Health Service, constitutes
an effort to determine the quality and distribution of maternal health ser­
vices rendered to Michigan women.

The data was based on approximately

21,000 birth certificates which represent the number of registered births
during the first quarter of 1936, and 10,000 detailed obstetric histories
used as a reasonably representative sample of these births.
The Michigan study is designed to assist the medical profession and the
general public to understand the complexity of the problem of maternal care with
its economic implications and to suggest some of the directions which attempts
to improve maternal serviqe must take.
In presenting the report, Pr. Alexander M. Campbell of Grand Rapids,
Michigan, who is Chairman of the Maternal Health Committee of the Michigan State
Medical Society, stated!
uThe United States practically leads the civilized world in the rate of
mortality attributable to childbirth.

As this knowledge has become widespread,

demands for correction have increased; first, because studies dealing with
maternal deaths have shown that a majority of them are preventable, and second,
because of the magnitude of the problem, which robs the nation annually of some

12,000 women in the prime of life at the height of their usefulness to their
families and to the nation.11
Sepsis is the most important cause of maternal mortality and accounts
for approximately 40 per cent of the deaths, according to Dr. Campbell.

Al­

though it is largely preventable by adequate antenatal and postnatal nodical
supervision and rigorously aseptic technique at delivery,- no significant
decrease in the dearth rate from this causo has boon achieved during the last
22 years for which records aro available»-

Deaths from toxemias of pregnancy

have decreased slightly but significantly in the last six or eight years.
According to the Michigan Ccnmittoo, at least throe-fourths of the
deaths occurring in the first month of life arc caused by reasons cither natal
or prenatal in origin.

The Committoo also pointed out that in addition to the

unnecessary wa,sto of maternal and infant life, much ill health in terms cf
physical or mental abnormalities result from childbirth.
“Many mothers and babies arc permanently crippled from injuries sus­
tained during labor or suffer impairment of physical or mental health from
conditions incidental to pregnancy and labor; many babies are malformed at
birth.

There is conclusive evidence thait much of this ill-health is prevent­

able. H
The Michigan study found tha.t physicians attend 96..5$ of the registered
births in the State, the remaining 3.5$ being about equally divided between
obstetricians and a group of unspecified individuals who arc nurses, friends,
or relatives.

Apprcxiaatoly one-half of the physicians in the State of Michigan

are engaged in the practice of obstetrics, but loss than one-fourth of the total
number of the doctors in tho Sto.to handle a.bcut 85$ of the births.
half deliver tho remaining one-sixth of Michigan's babies.

The other

It was found that

maternal care given by obstetricians tends to be concentrated in the larger
cities while in tho rural areas tho service is mostly in tho hands of tho

- 3 -

general practicioner, especially those who graduated prior to 1915.
In-general, women who are poor or who are on relief, women who live in
rural areas and those who have had other children, according to the Michigan
Committee on Maternal Care, •’"bear the brunt of the wido-spread deficiency
in prenatal services.1*
In a study of the hospitalization, the Michigan Committee found that
those in the upper income brackets and those having their first baby are noro
likely to have hospital care than women otherwise classified.

Nearly 60$ of

the mothers living in the larger cities are delivered in hospitals, while
less than 25$ of the rural women are afforded such service.

When it comes

to economic status, the figures shovf that hospitalization varies from 65$ among
the well-to-do, 50$ among the middle class group, 33$ among the poor to 28$
among those on relief.

The proportion of hospitalized mothers of first babies

is nearly double that of those who have previously undergone childbirth.
It was found also that the technique employed in the handling of la.bor
and delivery varies widely and is related to certain characteristics of the
birth attendant, to the place of delivery (home or hospital), size of the city,
and the economic sta/bus of the mothers.

The Committee stated, nIf the pro­

cedures adopted by specialists in obscterics are taken to represent standards
of good practice, serious defects appear in the practices of many of the birth
attendants»

The most striking of those consist in the use of pituitrin before

delivery, in manual dilation of the cervix, in manual removal of the placenta,
in the fsilure to use aseptic techniques (sterile drapes and rubber gloves), and
in frequent vaginal examination and use of forceps.

Taken as a group the

younger physicians, those who graduated since 1925, tend to follow with slight
variations the practices of the obseteric specialists; physicians who graduated
before 1925, and in some instances the doctors of osteopathy, tend to adopt

practices which, are employed by the obsetericians with relative infrequency.
Although questionable, and even dangerous procedures are spread widely over
the total group of parturient wonen, a relatively large share of the most
serious defects in practice fall upon poor wonen, those delivered at hone, and
those living in rural cor:nunities.,f

PRESS RELEASE

The Commissioner of Customs today announced that the quota on
importations of red cedar shingles from Canada, provided for under
the Canadian Trade Agreement, and Executive Order No. 7946, of
August 9, 1938, which limited importations of this commodity to
864,881 squares during the last six months of the calendar year
1938, was filled on September 28, 1938.
Therefore, further importations of this commodity may not be
admitted to entry for consumption until the beginning of the next
quota period on January 1, 1939.

,

OFFICE OF THE COMMISSIONER OF CUSTOMS

Sta

SEP 3 0 1938

MR. GASTON
(Attention of Mr. Schwarz, Room 889, Treasury Building)
FROM THE COMMISSIONER OF CUSTOMS:
There is attached for immediate release a statement announcing
the fulfillment of the current quota on importations of red cedar
shingles from Canada on September 88, 1938.
When the release has been mimeographed, please have 145 copies
forwarded to Miss Henry, Room 415, Washington Building.

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Thursday, September 29, 1938«

Press Service
No. 14-77

The Commissioner of Customs today announced that the quota on importations of rod cedar shingles from Canada, provided for under the Canadian
Trade Agreement, and Executive Order No. 7946, -of August 9, 1938, which
limited importations of this commodity to 864,881 squares during the last
six months of the calendar year 1938, was filled on September 28, 1938#
Therefore, further importations of this commodity nay not be admitted
to entry for consumption until the beginning of the next quota period on
January 1, 1939*

■oOo—

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 3. 1938_____, 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

October 5. 1938_____

.

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.

( Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

ITo loss from, the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, for the purposes of any tax now or hereafter imposed by the United
States or any of its possessions.
Treasury Department Circular :1b* 418, as amended, and this
notice prescribe the terms of the Treasury bills and govern the con-»
aitions of their issue.

Copies of the circular may be obtained from

any Federal Reserve Bank or branch thereof.

SdcagfatxjagBBnHba^

SadacM cfateg^ic

XtB^ngxaartaoittty x&artcg

TREASURY DEPART M\fT

FOR RELEASE, MORNING- PAPERS,
Erfday», Sapt.qatear.. 2.Q, 1.93a,.
STO

The Secretary of the Treasury gives notice that tenders are
invited for Treasury hills to the amount of $ 100,000,000, or thercabouts^.
They will he 91 -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 o1clock p. m., Eastern Standard time,
on Monday. October 3, 1 95fl

Tenders will not he received at the

.

i&k
Treasury Department, Washington*
The Treasury hills will he dated October 5. 1938
mature on January 4. 1939

, and will

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.
Ho tender for an amount less than £1,000 will dxr'C-ynsidered*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 be accepted.without" cash deposit from incorpor- .
ated hanks and trust companies and from responsible and recognised
dealers in investment securities.

Tenders from „others must he accom­

pany ed by a deposit of 10 per cent of the face amount of Treasury hills

TREASURY DEPARTMENT

FOR RELEASE, MORNING- PAPERS,
Friday, September 30» 1938»

The Secretary of the Treasury gives notice that tonders are invited
for Treasury hills to the amount cf $100,000,000, or thereabouts#

They will

to 91-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#n#, Eastern Standard tine, on Monday, October 3, 1938#
Tenders will not be received at the Treasury Department, Washington#
The Treasury bills will be dated October 5, 1938, and will nature on
January 4, 1939, and on the maturity da.te the face amount will be payable
without interest#

They will be issued in bearer forn 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 loss 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*135#
Fractions must not be used#
Tenders will be accepted Y/ithout 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 arc
accompanied by an express guaranty of payment by an incorporated bank or
trust company#

-

2

-

Ijanedistbely after the closing hour for receipt of tenders on
October 3, 1938, 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 loss
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 October 5, 1938.
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.

(Attention is invited

to Treasury Decision 4550, ruling that Treasury bills are not exempt from
the gift tax*)

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 terns of the Treasury bills and govern the conditions of
their issue*

Copies of the circular may be obtained from any Federal Re­

serve Bank or branch thereof*
— oOo—

-

2

-

pharmacist’s mate, whose many duties will include servicing the new trailer,
chauffeuring, and aiding the doctor.
The new unit, built to specification for the United States Public Health
Service, is fitted with the most modern dental chair and accessories5 x-ray
machine; dark-room, for developing plates; and lead-lined storage space for
film.

It has, likev/ise, the newest type sterilizer for instruments;

facilities for administering gas; complete laboratory supply closets; and all
equipment, including lathe, for a limited amount of prosthetic work.

The

electrical equipment uses alternating current, but when the unit strikes a
base where only direct current is available, a rotary converter is put into
action.

An outside hose connection for continuous water supply connects

through the trailer walls.

There is a dressing closet, with full length

mirror; storage space for linens, instruments,and other essentials; a writing
desk and other conveniences for the officer in charge.
The idea of and plans for this unit as well as the first, which was
put into commission in Florida in November 1936, were instigated within the
Public Health Service.

It was planned to serve officers and enlisted men

of the United States Coast Guard at out of the way stations.
193S,

Up to August 1,

7,304 treatments for all types of dental ailments had been given to

2,046 patients in the trailer unit.
Before the advent of these dental units, when a Coast Guardsman re­
quired dental treatment, he entered a Marine Hospital or went to a civilian
dentist who did the work by contract with the Government.

The motorized

station now takes over a large part of this work; is more convenient for the
patient; and has, likewise, reduced long-run expenses, both to Government
and patients.
1 1

DB:mea

i

IBPtop 1,nod den tal -uni-t o . This mobile station will cruise within Coast Guard
Districts of the Great Lakes for a month before starting out for the West
Coast.

Neither of these areas has ever before been visited by a mobile unit.

Beginning the first week in October, the new unit - longer, heavier,
and equipped with the latest type of dental instruments - will start from
Oswego, New York, and work west through Youngstown, Ashtabula, Fairport
Harbor, Lorraine, and Marblehead, Ohio.

The time of stay at each of these

stations will be determined by the amount of work to be done and the state
of the weather.
The unit will render dental relief to a considerable number of

benefit?iaria

who otherwise might never get it - Coast Guard personnel, at isolated stations.I
If his tooth-troubles are made known to Passed Assistant Dental Surgeon, Dr.
David Cooper, however, who is in charge of the new unit, Mno one in pain is
turnedaway”, be he Government employee or layman.
Before taking over the new unit, Dr. Cooper had been in charge of the
first of these semi-trailer type dental stations. He is especially qualified
for this work because of his long association v;ith the United States Coast
Guard. For two seasons he was dental officer of the Bering Sea Ice and Seal
Patrol force. As in the first unit, Dr. Cooper will have as assistant, a

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Saturday, October 1, 1938.______
9 /30 /38 .

Press Service
No, 14-78

As a result of the very successful operation of its first motorized
dental unit, the United States Public Health Service this week put into
operation a second unit of this type.

This mobile station will cruise

within Coast Guard Districts of the Great Lakes for a month before start­
ing out for the West Coast.

Neither of these areas has ever before been

visited by a mobile unit.
Beginning the first week in October, the new unit - longer, heavier,
and equipped with the latest typo of dental instruments - will start from
Oswego, New York, and work west through Youngstown, Ashtabula, Fairport
Harbor, Lorraine, and Marblehoaxi, Ohio.

The time of stay at each of these

stations will be (determined by tho amount of work to be done and the state
of the weather.
The unit will render dental relief to a considerable number of ben-eficiaries who otherwise might never get it - Coast Guard.personnel, at
isolated stations.

If his tooth-troubles are made known to Passed Assistant

Dental Surgeon, Dr. David Cooper, however, who is in charge of the new unit,
“no one in pain is turned away," be he Government employee or layman.
Before taking over the new unit, Dr. Cooper had been in charge of
the first of these semi-trailer type dental stations.

He is especially

qualified for this work because of his long association with the United
States Coast Guard.

For two seasons ho was dental officer of the Bering Sea

Ice and Seal Patrol force.

As in the first unit, Dr. Cooper will have as

2
assistant, a pharmacists mate, whose many duties will include servicing
the new trailer, chauffeuring, and aiding the doctor.
The new unit, built to specification for the United States Public
Health Service, is fitted with the most modern dental chair and accessories;
x-ray machine; dark-room, for developing plates; and lead-lined storage
space for film.

It has, likewise, the newest type sterilizer for instruments;

facilities for administering gas; complete laboratory supply closets; and
all equipment, including lathe, for a limited amount of prosthetic work*
The electrical equipment uses alternating current, but when the unit strikes
a base where only direct current is available, a rotary converter is put in­
to action.

An outside hose connection for continuous water supply connects

through the trailer walls.

There is a dressing closet, with full length

mirror; storage space for linens, instruments, and other essentials;

a

writing desk and other conveniences for the officer in charge.
The idea of and plans for this unit as well as the first, which was
put into commission in Florida in November 1936, were instigated within the
Public Health Service.

It was planned to serve officers and enlisted men

of the United States Coast Guard at out of the way stations.

Up to August

1, 1938, 7,304 treatments for all types of dental ailments had been given
to 2,046 patients in the trailer unit.
Before the advent of these dental units, when a Coast Guardsman re­
quired dental treatment, he entered a Marine Hospital or went to a civilian
dentist who did the work by contract with the Government.

The motorized

station now takes over a large part of this work; is more convenient for
the patient; and has, likewise, reduced long-run expenses, both to Govern­
ment and patients*

oOo—

*• 2
Government
Securities
Fund or Agency

$2,659,853

Totals brought forward........

736
District of Columbia Water Fund ••••. ••••
951,000
Unemployment Trust F u n d ........
69,700
Railroad Retirement Account ........ ••••
733,300
Old-Age Reserve Account .............
Foreign Service Retirement and
3,626
Disability Fund ........... •......
Canal Zone Retirement and Disability.
4,102
Fund (l) ........... ............ .
24,300
•**•
Adjusted Service Certificate Fund
Alaska Railroad Retirement and
502
Di sability Fund .................. ••••
Totals..... •••• $4,447,119

60,105
64,935
64,236
5,129
1,845
2,055
25,426
1 ,1 0 0
48,020
3,487
125
250

$

276,713

t

Totals

Note:

*

•••••

$269,802
-

A
—
r*
$269,802

-

9,000
23,995
13,931
11,028
6,897
9,682
-

m
*

-

—
«4«

$44,689

$762,705
,8,525
25,907
75,293 :
25 |
—

-

—

-

-

■—

m

$74,533

Consist principally of Federal Farm Local Bonds and Federal
Intermediate Credit Banks Debentures.

0O0—

$44,689

-

All trust funds may "be invested in Government and Governmentguaranteed securities, and certain funds may also be invested
in additional securities as indicated:
(1) In Federal Farm Loan Bonds;
(2) No Limitations.

** Latest figures available.

Other
Securities*

•*

$

Federal Farm Mortgage Corporation ... •••• $
Federal Land Banks .................
Federal Intermediate Credit Banks ... *•••
Banks for Cooperatives ............
Production Credit Corporations .... .
Production Credit Associations .... ... • • • •
Joint Stock Land Banks .......... ...
Federal Home Loan Banks .......................... ...
Home Owners* Loan Corporation . . . . . . .
Reconstruction Finance Corporation •• • • • •
Inland Waterways Co rporation**.. . . . . . • •
U. S. Spruce Production Corporation . . t • 1
U.S. Housing j i . n * bn . o * f c y • • • • • • • • • • » * • • • • • •
0 •

Governmentguaranteed
Securities
(000 omit tod)

$872,455

TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING- NEWSPAPERS,
Saturday, October 1, 1938.__ _
9/30/38.'.
.......

Press Service
No. 14-79

Secretary Morgenthau released today the following statement relative
to the amount of Government and. other securities held in governmental trust
accounts and "by governmental corporations and agencies:

SECURITIES HELD AS INVESTMENTS IN TRUST FUNDS AND IN ACCOUNTS
OF CERTAIN GOVERNMENTAL CORPORATIONS AND AGENCIES
"ON AUGUST 31, 1938.

Fund or Agency

Government GovernmentSecurities 'guaranteed
securities
(000 omitted)

Postal Savings System ........ .
$
Federal Deposit Insurance Corporation ...
Individual Indian Trust Funds .........
Mutual Mortgage Insurance Fund and
Housing Insurance Fund ........... .
Federal Savings and Loan Insurance Corp..
Civil Service Retirement and Disability
Fund ............... ............... ..
U.S. Government Life Insurance Fund (l)..
D.C. Teachers* Retirement Fund (2) ......
Alien Property Custodian Fund ..........
Panama Canal Zone Funds (l) ....... .
General Post Fund, Veterans * Administra­
tion ............ ......... ..........
Library of Congress Trust Fund (2) .....
D.C. Workmen*s Compensation Fund (l) ....
Longshoreman*s and Harbor Workers*
Compensation Fund (l) ...............
German Special Deposit Account ........ .
National Institute of Health Gift Fund •.
Comptroller of the Currency Employees*
Retirement Fund ......................
Pershing Hall Memorial Fund ............
National Park Trust Fund (2) ...........
Ainsworth Library Fund, Yvalter Reed
General Hospital .....................

938,521
369,094
42,462

$166,834
—
71

19,686
10,015

102,787

468,000
767,282
5,536
30,710
1,850
1,067
1
10
117
3,957
83
1,242
198
12

$

«

21
—
—

—

95
».

5

42,067
1,965
290
1
291
11

—

-

-

43
—

**

«

-

—

10
-

-_|

10

$2,659,853

Other
Securitii

$ 269,802

$44,689

TREASURY DEPARTMENT
Accounts and Deposits

MR. HEFFELFINGER

TREASURY DEPARTMENT
Washington

FOR RELEASE

yS-A^-. —

^po^s»-€-T^<3

l'

Press Service
No* j if -~\ A

i O'

Secretary Morgenthau released today the following statement relative
to the amount of Government and other securities held in governmental trust
accounts and by governmental corporations and agencies:
SECURITIES HELD AS INVESTMENTS IN TRUST RUUDS M D IN ACCOUNTS
OF CERTAIN GOVERNMENTAL CORPORATIONS ARP AGENCIES
ON AUGUST 1 1 . 1938
Government
Securities
Fund or Agency

$ 93S,521
369,094
H2,H62
19,686
10,015
U6s,ooo
767,282
5,536
30,710
i ,«50
1,067
1
10
117

Postal Sayings System •«*••••••••••••••«
Federal Deposit Insurance Coxporation ••
Individual Indian Trust Funds ••••»*««••
Mutual Mortgage Insurance Fund and
Housing Insurance Fund *•••••••••••••«
Federal Savings and Loan Insurance Corp*
Civil Service Retirement and Disability
Fund ............. .
U*S. Government Life Insurance Fund (l)*
D*C#Teachers* Retirement Fund (2)
Alien Property Custodian Fund ••«•«•••••
Panama Canal Zone Funds (l) •••••«••••«•
General Post Fund, Veterans’ Administration .............................. .
Library of Congress Trust Fund (2) •
D.C.Workmen’s Compensation Fund (l) ••••
Longshoremen’s and Harbor Workers*
Compensation Fund (l) •••••..♦•..... .
German Special Deposit Account
Rational Institute of Health Gift Fund •
Comptroller of the Currency Employees’

3,957
33

Other
Governmentguaranteed
Securities*
Securities
( 0 0 0 omitted)

$166,83**
-

$

_
-

71
mm

21

mm

102,787

-

mm
-

95
5
mm

-

42,067
1,965
290
1
291
11

10
-

^3
mm

-

l,2 *i2
Pershing Hall Memorial Fund •••••••••••«
Rational Park Trust Fund (2 )
Ainsworth Library Fund, Walter Reed

19S
12
10

$2 ,6 5 9 , 8 5 3

«.

mm

-

$2 6 9 , 8 0 2

—

$1)4 , 6 8 9

-

2

-

Government
Securities

£nnd cr Agency

Governmentguaranteed
Securities

Other
Securities*

(000 omitted)
Totals brought forward •••••••••••••••* $2 ,6 5 9 , 8 5 3
District of Columbia Water Fond ••••••«
Unemployment Trust Fund •«••••••.... ••
Hailroad Retirement Account .••••••••..
Old-Age Reserve Account.... ••••..»•••
Foreign. Service Retirement and
Disability Fund •••••••... •••••.••.
Canal Zone Retirement and Disability
Fund (1) ...................... .
Adjusted Service Certificate Fund •«•••
Alaska Railroad Retirement and
Disability Fund •••»....... ....... .

Totals .«•••••• $
Rote:

$HH,689

736

«■»
—

-

-

-

2 U. 3 0 0

-

-

502

-

-

951

,0 0 0

69.700

7 3 3 ,3 0 0
3.626

-

H,102

Totals ........ $H, HH7 , 1 1 9

Federal Farm Mortgage Corporation •«•«• $
Federal Land B a n k s .... .
Federal Intermediate Credit Banks .....
Banks for Cooperatives .»••••••..»•«••«
Production Credit Corporations •••••••«
Production Credit Associations ••••••«.
Joint Stock Land Banks
Federal Home Loan Banks
Home Owners* Loan Corporation ••••••••*
Reconstruction Finance Corporation ....
Inland Waterways Corporation ** .......
U.S. Spruce Production Corporation «...
U.S. Housing Authority ...... .

$269,802

60,105

$269,802

$ HU, 6 8 9

$

$7 6 2 , 7 0 5
-

-

6 H.9 3 5

9,000

6^,236

23,995

5 ,1 2 9
1 , 81)5
2 ,0 5 5

13,931

125
250

11,028
6 ,8 9 7
9 ,6 8 2
—
-

276,713

$ 7 ^ ,5 3 3

25,^26

1,100
US, 020
3 . ^ 7

8,525

2 5 ,9 0 7
7 5 ,2 9 3
25
-

—
$8 7 2 ,U5 5

All trust funds may be invested in Government and Governmentguaranteed securities, and certain funds may also be invested
in additional securities as indicated:
(1) In Federal Farm Loan Bonds;
(2) Ho Limitations.

* Consist principally of Federal Farm Loan Bonds and Federal
Intermediate Credit Bank Debentures.

** Latest figures available.

—

0 O0 —

M r ^ Nellie Tayloe Boss, Director of the United States Mint,
today announced that the three coinage mints located at Philadelphia,
Denver and San Francisco had "been instructed to proceed with the
coinage of the newwJefferson nickel#M
The United States Treasurer’s office, which distributes the
Treasures coin and currency to the nation’s banks, has requested
the Bureau of the Mint to furnish it with 12,700,000 of the hew
coins, having a value of $635,000, before distribution will be
undertaken#
Mrs# Ross warned coin collectors and others eager to obtain
the new nickel as soon as possible}that the only places at which
these coins will be available will Jdn be the banks of the country.
It is expected that distribution to the banks will not take place
until November#
Secretary of the Treasury Morgenthau announced on April 21,
1938, that Felix Schlag, of Chicago, was the winner of the national
competition among American sculptors £or the design of the new fivecent coin#^M-iya. Itusa.'
subsequently requested M rs1 Cclilag tTrmakft'
lSerHum w m r , After the final re­
visions were made the Bureau of the Mint commenced the detailed and
intricate work of perfecting the dies#

These details having now been

completed, the Mint is prepared to strike off the new nickel at a rapid
rate#
^

r

il

r

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Saturday, October 1, 1938.

.

Pross Service
No. 14-80

Mrs. Nellie Tayloe Ross, Director of the United States Mint, today an­
nounced that the three coinage mints located at Philadelphia, Denver and San
Francisco had been instructed to proceed with the coinage of the new ,lJefferson
nickel,n
The United States Treasurers office, which distributes the Treasury*s
coin and currency to the nation*s bonks, has requested the Bureau of the Mint
to furnish it with 12,700,000 of the new coins, having a value of $635,000,
before distribution will be undertaken.
Mrs. Ross warned coin collectors and others eager to obtain the new nickel
as soon as possible, that the only places at which these coins will be available
will be the banks of the country.

It is expected that distribution to the banks

will not take place until November*
Secretary of the Treasury Morgenthau announced on April 21, 1938, that
Felix Schlag, of Chicago, was the winner of the national competition among
American sculptors for the design of the new five-cent coin.

Mr. Schlag*s

design was chosen as the winner contingent upon his making certain changes.
After the final revisions wore made the Bureau of the Mint commenced the detailed
and intricate work of perfecting the dies.

These details having now been com­

pleted, the Mint is prepared to strike off the new nickel at a rapid rate*

— -oOo—

/r '
m

1 S ecretary Ivlirgenthau announced today th a t M arshall Diggs, f i r s t
A
Deputy Comptroller o f the Currency, who has teen A cting Comptroller since
the resig n atio n o f Comptroller J . F . T . 0 * Connor

e a rly in A p ril,

Had resigned to re -e n te r the*

p r a c tic e o f law.
also
the Secretary^announced the resig n a tio n o f

G. J . Oppegard, Deputy Comptroller o f the Currency, who i s returning to
the Federal Deposit Insurance Corporation as A ssista n t Counsel, a p osition
he occupied u n til h is appointment as Deputy Comptroller in January, 1938.
A fte r co n su lta tio n with Preston Delano, who has heen appointed hy
the P resid ent to he Comptroller o f the Currency, S e cre ta ry Morgenthau has
appointed C yril B. Upham as F i r s t Deputy Comptr o l l e r o f the Currency,
KffffBrefcx Upham

.L

Mr.

w ill serve as Acting

Comptroller u n til Mr. Delano assumes the d u ties o f the o f f ic e in the
near fu tu re .
r h a s heen in the Treasury Department

Mr* Upham

since December, 1933, fo r the l a s t three years as an A ssista n t to the
S e cre ta ry , in which cap acity he has heen a c tiv e in m atters re la te d to
hanking and to the operation o f Government c r e d it a g en cies.
tm m

He i s a-naW W

resid en t o f Iowa and a member o f the har o f the D is t r ic t o f Columbia.
*

Y

Cj^kSL/k-nu^

He was graduated with the degree o f A. B. from\frfafW"’r
/from the rirrrrr tinr + 4+ ”

and
*A * *

sushsequently obtained the degree of FhT337>as the result of research in
‘A
p o l i t i c a l sc ie n c e . L ater he engaged in hanking in Hew York C ity and was

afterw ard a member o f the research s t a f f o f the Brookings I n s titu tio n . He
i s co-author o f a hook, “Closed and D istressed Banks,“ which was a sjmdy
o f the developments follow ing the hanking c r i s i s o f 1932 ahd 1933.

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Saturday, October 1, 1938*

Press Service
No. 14-81

Secretary Morgenthau announced today that Marshall R. Diggs, First Deputy
Comptroller of the Currency, who has been Acting Comptroller since the resigna­
tion of Comptroller J. F, T. 0 1Connor early in April, had resigned to re-enter
the practice of law.
The Secretary also announced the resignation of G. J. Oppegard, Deputy
Comptroller of the Currency,, who is returning to the Federal Deposit Insurance
Corporation as Assistant Counsel, a position he occupied until his appointment
as Deputy Comptroller in January, 1938.
After consultation with Preston Delano, who has been appointed by the
President to be Comptroller of the Currency, Secretary Morgenthau has appointed
Cyril- B. Upham as First Deputy Comptroller of the Currency,

Mr* Upham took

the oath of office today and will serve as Acting Comptroller until Mr. Delano
assumes the duties of the office in the near future,
Mr. Upham has been in the Treasury Department since December, 1933, for
the last three years as an Assistant to the Secretary, in which capacity he
has been active in matters related to banking and to the operations of Govern­
ment credit agencies.

He is a resident of Iowa and a member of the bar of the

District of Colttmbia,».. He was graduated with the degree of A.B. from Morningside
College and subsequently obtained the degree of Ph.,D% from the State University
of Iowa as the result of research in political science.

Later he engaged in

banking in Nev/Tork City and was afterward a member of the research staff of
the Brookings Institution.

He is co-author of a book, r,Closed and Distressed

Banks,’1 which was a study of the developments following the banking crisis of
1932 and 1933.
-ooOoo-

TREASURY DEPARTMENT
Wash! rg ton
FOR IMMEDIATE RELEASE,
Monday, October 3, 1938.

Press Service
No. 14-82

Arriving* from foreign ports, 73,558 vessels made entries at United
States Custom Houses in the fiscal year 1938, an increase of 1.2 percent
from the 72,679 ships that checked in during the preceding fiscal year, the
Bureau of Customs announced today.

The totals include entries at Puerto Rico,

Virgin Islands, Hawaii and Alaska with those for the continental United States*
»Entering’1 is used as a technical term by Customs officials to refer to
the filing of certain specific documents with the collectors of customs within
a short time after the arrival of the vessel at a port.

All vessels, whether

of foreign or domestic registry, arriving in this country direct from foreign
ports are required to make entry at a Custom House.

In addition, all foreign

vessels plying between American ports for the purpose either of securing further
cargo or of unlading residue cargo, are required to make entry at each port of
call.

American vessels, if registered for foreign trade, or if they carry any

foreign cargo in bond, are likewise required to make entry at each port of call.
The total number of vessels entering direct from foreign ports during
the past fiscal year was 34,273, a decrease of 2.4 percent from the previous
year.

The net tonnage of these vessels showed an increase of 4.9 percent over

the previous year, from 68,805,087 in 1937 to 72,184,846 in 1938.

Of the above

total, the number of foreign vessels remained practically stationary, while the
number of American vessels decreased by 6.3 percent.
A detailed statement of the number of entrances of vessels for each of
the past two fiscal years and of the increases or decreases in their net ton­
nage follows

«W

v| ;
■

,'*

‘ s

-

2

-

Numher of
Vessels

Net Tonnage of
Vessels

Percent of
Increasei or
Deeresiso
.1938 t ;No. :■ Tonnage

1937

: 1938

21,977
13,130
35,107

21,965
12,308
34,273

49,005,360
19,799,727
68,805,087

52,236,449 - *1
19,948,397 -6.8
72,184,846 —2.4

6*6
*8
4*9

Via Other Domestic Ports with
Residue Cargo to Unlade
Foreign vessels
Domestic vessels
Total

5,297
2,522
7,819

5,505
2,574
8,079

17,118,626
8,793,409
25,912,035

17,704,120
9,043,296
26,747,416

3,9
2.1
3.3

3.4
2.8
3.2

Via Other Domestic Ports
to Dade
Foreign vessels
Domestic vessels
Total

5,297
2,469
7,766

6,068
2,598
8,666

'
16,103,446
8,283,789
24,387,235

18,454,820 14.6
8,883,451 5.2
27,338,271 11.6

14.6
7.2
12.1

From Noncontiguous Territory
Domestic vessels only

5,281

5,544

7,894,818

5.0

16.1

From Intercoastal Ports
Domestic vessels only

4,376

5,684

15,981,934

20,843,726 30.0

30.0

From Coastwise Ports
Domestic vessels only

12,330

11,312

25,532,979

22,815,940 -8.3

-6.4

32,571
40,108
72,679

33,538
40,020
73,558

82,227,432 88,395,389 3.0
86,286,656 90,697,172 - .2
168,514,088 179,092,561 1.2

7.5
5.1
6.3

Direct from Foreign Ports
Foreign vessels
Domestic vessels
Total

Total Entrances:
Foreign vessels
Domestic vessels

■oOo

: 1937

1

9,162,362

Sta
OFFICE OF THE COMMISSIONER OF CUSTOMS

0CT

I W38

TO MR. GASTON
FROM THE COMMISSIONER OF CUSTOMS:
(Through Assistant Secretary Gibbons)

There is transmitted herewith a statement showing data regard­
ing the number of vessels entering the United States during the
fiscal years 1937 and 1938, which may be suitable for use as a
Treasury press release.

Percent of
Increase ori
Number of
1937 ;
Direct from Foreign Ports
Foreign vessels
Domestic vessels
Total

1938

Net Tonnage of Vessels
1937

:

1938

: No. : Tonnage]

J

21,977
13,130
35,107

21,965
12,308
34,273

49,005,360
19,799,727
68,805,087

52,236,449
19,948,397
72,184,846

- .1
-6.3
-2.4

Via Other domestic Ports with
Residue Cargo to Unlade
5,297
Foreign vessels
Domestic vessels
2,522

5,505
2,574

17,118,626
8,793,409

17,704,120
9,043,296

3.9
2.1

3.4 n
2.8 1

7,819

8,079

25,912,035

26,747,416

3.3

3.2 1

Via Other Domestic Ports to
Lade
Foreign vessels
Domestic vessels
Total

5,297
2,469
7,766

6,068
2,598
8,666

16,103,446
8,283,789
24,387,235

18,454,820
8,883,451
27,338,271

14.6
5.2
11.6

14.61
7.2|
12.11

From Noncontiguous Territoi^r
Domestic vessels only

5,281

5,544

7,894,818

9,162,362

5.0

16.11

From Intercoastal Ports
Domestic vessels only

4,376

5,684

15,981,934

20,843,726

30.0

30.01

From Coastwise Ports
Domestic vessels only

12,330

11,312

25,532,979

22,815,940

-8.3

-b.4J

Total Entrances:
Foreign vessels
Domestic vessels

32,571
40,108

33,538
40,020

82,227,432
86,286,656

88,395,389
90,697,172

_
3.U

„ efl
Y
.ÜB
5.1J

72,679

73,558

168,514,088

179,092,561

1.2

6.31

Total

Total

I.

•8 I
4.91

Df the United States aggregated 73,558 during the fiscal year 1938,
m increase im In>*111

111

for the P£®ceji#®P^Lscal

;'ear (72,679), the Bureau r>f
include

1111 1 1 1 , 1

\11 ITiil

today.

These totals

&ico, Virgin Islands, Hawaii and Alaska

mth-^TOse for the continents? TT’'4
OlMi n n r "¿titering” iS Ui

with the collectors'of customs within a short time after the arrival
of the vessel at a port.

All vessels, whether of foreign or domestic

'registry, arriving in this country direct from foreign ports are
required to make entry at a custo

use.

In addition, all foreign

vessels plying between American ports for the purpose either of
securing further cargo or of unlading residue cargo, are required to
make entry at each port of call.

American vessels, if registered

for foreign trade, or if they carry any foreign cargo in bond, are
likewise required to make entry at each port of call.
The total number of vessels entering direct from foreign ports
during the past fiscal year was 34,273, a decrease of 2.4 percent
from the previous year.

The net tonnage of these vessels showed an

increase of 4.9 percent over the previous year, from 68,805,087 in
1937 to 72,184,846 in 1938.

Of the above total, the number of foreign

vessels remained practically stationary, while the number of American
vessels decreased by 6.3 percent.
A detailed statement of the number of entrances of vessels for
each of the past two fiscal years and of the increases or decreases
> in their net tonnage follows:

For immediato release

Arriving frdm foreign ports» 73»558 vessels
made entries at United States Custom Houses in the fiscal year 1938»
an increase of 1*2 per cent from the 72»679 ships that checked in
during the preceding fiscal year» the Bureau of Customs announced today«
The totals include entries at Puerto Rico» Virgin Islands» Hawaii
and Alaska with those for the continental United States*

TREASURY DEPARTMENT
Washirgton
FOR IMMEDIATE RELEASE,
Monday, October 3, 1938.

Press Service
No. 14-82

Arriving from foreign ports, 73,558 vessels made entries at United
States Custom Houses in the fiscal year 1938, an increase of 1.2 percent
from the 72,679 ships that checked in during the preceding fiscal year, the
Bureau of Customs announced today.

The totals include entries at Puerto Rico,

Virgin Islands, Hawaii and Alaska with those for the continental United State®.
nEntering,r is used as a technical term by Customs officials to refer to
the filing of certain specific documents with the collectors of customs within
a short time after the arrival of the vessel at a port.

All vessels, whether

of foreign or domestic registry, arriving in this country direct from foreign
ports are required to make entry at a Custom House.

In addition, all foreign

vessels plying "between American ports for the purpose either of securing further
cargo or of unlading residue cargo, are required to make entry at each port of
call.

American vessels, if registered for foreign trade, or if they carry any

foreign cargo in bond, are likewise required to make entry at each port of call.
The total number of vessels entering direct from foreign ports during
the past fiscal year was 34,273, a decrease of 2.4 percent from the previous
year.

The net tonnage of these vessels showed an increase of 4.9 percent over

the previous year, from 68,805,087 in 1937 to 72,184,846 in 1938.

Of the above

total,. the number of foreign vessels remained practically stationary, while the
number of American vessels decreased by 6.3 percent.
A detailed statement of the number of entrances of vessels for each of
the past two fiscal years and of the increases or decreases in their net ton«nage follows!

Number of
Vessels
1937
Direct from Foreign Ports
Foreign vessels
Domestic vessels
Total

Net Tonnage of
Vessels

: 1938: ï 1937

:

Percent of
Increase or
Decrease
1938 : No.; Tonnage

21,977
13,130
35,107

21,965
12,308
34,273

49,005,360
19,799*727
68,805,087

52,236,449 - .1
19,948,397 -6.3
72,184,846 -2.4

6.6
.8
4.9

Via Other Domestic Ports with
Residue Cargo to Unlade
Foreign vessels
Domestic vessels
Total

5,297
2,522
7,819

5,505
2,574
8,079

17,118,626
8,793,409
25,912,035

17,704,120
9,043,296
26,747,416

3.9
2.1
3.3

3.4
2.8
3.2

Via Other Domestic Ports
to Lade
Foreign vessels
Domestic vessels
Total

5,297
2,469
7,766

6,068
2,598
8,666

16,103,446
8,283,789
24,387,235

18,454,820 14.6
8,883,451 5.2
27,338,271 11.6

14.6
7.2
12.1

From Noncontiguous Territory
Domestic vessels only

5,281

5,544

7,894,818

5.0

16.1

From Intercoastal Ports
Domestic vessels only

4,376

5,684

15,981,934

20,843,726 30.0

30.0

From Coastwise Ports
Domestic vessels only

12,330

11,312

25,532,979

22,815,940 -8.3

-6.4

32,571
40,108
72,679

33,538
40,020
73,558

82,227,432 88,395,389 3.0
86,286,656 90,697,172 - .2
160,514,088 179,092,561 1.2

7.5
5.1
6.3

Total Entrances;
Foreign vessels
Domestic vessels

9,162,362

TRSASÜHT DIPAHTMENf
Washington

fm s e i i s i » wmnm mmmwms
. Qctober

Press Serrics

4* 1938*

Ths Secretary of the Treasury announced last svsnlxtg that the
t«nders for #100,000,000, or tbere&bouts, of 91-day Treasury bills, to
be dated October 5, 1938, and to is&ture Janu&ry 4, 1039, whioh «sie
offered on September 30, wer« opened at the föderal Reserve banks m
Ootober 3»
The detail» of this issue ars as followss
Total applied for
Total aocepted

#433,786,000
100,123,000

Haag« of aocepted bldst
High

Vom
Average pries

.

100
99*990
99*993

äquivalent rat« approxiasately 0*040 percent
•
*
*
0.032
*

(33 pereant of the arsount bid for at the Xe» pries was aocepted)

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, October 4, 1938.
10/3/38.

Press Service
No. 14-83

The Secretary of the Treasury announced last evening that the
tenders for $100,000,000, or thereabouts, of 91-day Treasury bills, to
be dated October 5, 1938, and to mature January 4, 1939, which were
offered on September 30, were opened at the Federal Reserve banks on
October 3.
The details of this issue are as follows:
Total applied for
Total accepted

-

$455,786,000
100,125,000

Range of accepted bids:
High
Low
Average price

100.
99.990 Equivalent rate approximately 0.040 percent
99.992
it
tt
tt
0.032
"

(t>3 percent of the amount bid for at the low price was accepted)

various hospitals and clinics which are in need of radium for cancer treatment
and for the skilled physicians and special equipment essential for its
proper use.

rJ|||u inaili liters supply

m M S o T in the country and was purchased at a cost of $200,000. jrfeluded in the "i^gulat ions for the loaning of radium is the provipibn that
the personnel who arWjharged with the control and use of^$8vernment-owned
adium in institutions applyi%^for

same, must have#the professional qualifica
1
itions or the equal of those required o
és of the American Board
Jof Radiology".

Also included in the ro§0m 1

Ithat "no charge can be made a patigpl for the use o

is the stipulatioi
owned

! radium".
I
Since radium lojj|# half of its power only once in every l,7C)8^years,
I
I it is pointed
ouWraat the Government-owned radium will have a long
term
if
Nw..
°
of usefulness and

will facilitate the treatment of hundreds of cancer

sufferers
The

Council voted to meet again on Tuesday, January 3, 1939, at which

time it is expected that several grants-in-aid to hospitals and research
institutions for cancer study will be made- and several committees will
report•

EBiîC DW

- 2 work on the new Cancer Institute building to be erected on a 15 acre site
donated by Mrs« Luke 1« Wilson«
in this ceremony included:

The members of the Council participating

Dr« James Ewing, Director, Memorial Hospital,

New York; Dr. Francis Carter Wood, Director, Crocker Institute of Cancer
Research, Columbia University; Dr« Clarence C. Little, Director, Roscoe
B. Jackson Memorial Laboratory, Bar Harbor, Maine; Dr. Arthur H. Compton,
Professor of Physics, University of Chicago; Dr. James B. Conant, President
of Harvard University, in addition to Surgeon General Thomas Parran and
Dr. Ludvig Hefctoen.

Mrs. Wilson released the lever which started the ex­

cavating for the building which will be completed July 1, 1959, at a cost
of $600,000.

At its meeting today, the Council heard Dr. Arthur H. Compton
of the University of Chicago report on Professor E. 0. Lawrence’s work
with the cyclotron, a new instrument for shattering atoms into tiny particles,
some of which may have value in cancer treatment«
A report on the training of cancer specialists was presented by
Dr. James Ewing, Director of the Memorial Hospital in New York.
Dr. Clarence C. Little of the Jackson Memorial Laboratory, Bar
Harbor, Maine, informed the Council concerning the work of his colleague/
Dr. John J. Bittner^in the field of genetics as related to cancer«
The Council gave its approval to regulations drawn up by the
National Cancer Institute for the loan%| of its 9| grams of radium to

TREASURY DEPARTMENT
.1 /
[unite^/stat^B Public Health Service^
\
*
fort*'-

October .5, X958-*
f For immediate release.
IWteifc"_

Thefui|Sj| Public Health Service will undertake immediately a special
study of the efficiency of various types of cancer treatment, w i 1
*»
it a

Jinn fifty

meeting of the National Advisory Cancer Council
The types of cancer treatment to be studied are x-ray, radium and
surgery.

The Public Health Service will attempt to weigh the efficiency

of these different types of treatment in their application to numerous forms
of cancer,
Officials of the Public Health Service connected with the National
Cancer Institute said that the decision to undertake this study was made
because of the Mtremendously increased public interest in the cancer problem
and the widespread efforts of various organizations, both public and private,
in stimulating and developing programs of cancer control."
In commenting on this development Dr• Ludvig Hektoen, Executive
Director of the National Advisory Cancer Council,sai<^ ’^here is obviously
a very great need for the critical appraisal of these cancer control
programs, and more particularly those elements which seem to receive the
greatest emphasis from the standpoint of both public education and public
expenditures.

The one element of such programs which seems especially im-

portant in this connection relates to cancer therapy, or cancer treatment."
r
,V<4. v k
£g^gFs
“ftoiSicii took part
During^^^il-day session today tK?
in the ceremonies at Bethesda, Maryland, in connection with the beginning of

TREASURY DEPARTMENT
U*S. Public Health Service
Washington
POR IMMEDIATE RELEASE,
Monday, October 3, 1938.

Press Service
No. 14-84

The United States Public Health Service will undertake immediately
a special study of the efficiency of various types of cancer treatment, it
was announced today at a meeting of the National Advisory Cancer Council#
The types of cancer treatment to be studied are x-ray, radium and
surgery.

The Public Health Service will attempt to weigh the efficiency of

these different types of treatment in their application to numerous forms
of cancer.
Officials of the Public Health Service connected with the National
Cancer Institute said that the decision to undertake this study was made
because of the "tremendously increased public interest in the cancer problem
and the widespread efforts of various organizations, both public and private,
it
in stimulating and developing programs of cancer control.w
In commenting on this development, Dr. Ludvig Hektoen, Executive
Director of the National Advisory Cancer Council, said, "There is obviously
a very great need for the critical appraisal of these cancer control programs
and more particularly those elements which seem to receive the greatest
emphasis from the standpoint of both public education and public expenditures
The one element of such programs which seems especially

important in this

connection relates to cancer therapy, or cancer treatment,"
During their all-day session today the members of the,Cancer Council
took part in the ceremonies at Bethesds,

Maryland, in connection with the.

beginning of work on the new Cancer Institute building to be erected on a
15-acre site donated by Mrs, Luke Is Wilson.

The members of the Council

participating in this ceremony included:

Dr. James Ewing, Director, Memorial

Hospital, Hew York; Dr. Francis Carter Wood, Director, Crocker Institute of
Cancer Research, Columbia University; Dr. Clarence C..Little, Director, Roscoo
B. Jackson Memorial Laboratory, Bar Harbor, Maine; Dr. Arthur H. Compton,
Professor of Physics, University of Chicago; Dr. James B. Conant, President
of Harvard University, in addition to Surgeon General Thomas Parran and Dr.
Ludvig Hektoen.

Mrs. Wilson released the lever which started the excavating

for the building which will be complted. July 1, 1939, at a cost of $600,000.
At its meeting today, the Council hoard Dr. Arthur H. Compton of the
University of Chicago report on Professor E.O. Lawrence’s vrork with the
cyclotron, a new instrument for shattering atoms into tiny particles, some
of which may have value in cancer treatment.
A report on the training of cancer specialists was presented by Dr.
James Ewing, Director of the Memorial Hospital In Hew York.
Dr. Clarence C. Little of the Jackson Memorial Laboratory, Bar Harbor,
Maine, informed the Council concerning the work of his colleague, Dr, John J.
Bittner, in the field of genetics as related to cancer*
The Council gave its approval to regulations drawn up by the National
Cancer Institute for the loan of its

grams of radium to various hospitals

and clinics which are in need of radium for cancer treatment and for the
skilled physicians and special equipment essential for its proper use.
The Council voted to meet again on Tuesday, January 3, 1939, at which
time it is expected that several grant s-inrraid to hospitals and research in­
stitutions for cancer study will be made and several committees will report.

— oOo— *

- 2 -

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
October 10, 1 9 5 8

r 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

October 13, 1958______ .
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.

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills are
not exempt from the gift tax.)

Ho'loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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 DEPARTM O T

,

POR RELEASE, M0R1CTG PAPERS,
Friday, October 7, 1938.

The Secretary of the Treasury gives notice that tenders are
invited for Treasury bills to the amount of $ 1 0 0 .0 0 0 fOOP , or thereabouta^They will be 90 -day bills; and will be. sold on a discount basis to the
3Ç£gpC
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 10T 1938

.

Tenders will not be received at the

Treasury Department, Washington.
The Treasury bills will be dated Oatohaw 13r 1938
mature on

, and will

January 11, 1959 , 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 (matur ity 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.
Eo tender for an amount less than §1,000 will 'hc'CtmsiderecLEach tendernrust 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 hot be used.-

-— -

Tenders will be accepted.without^ cash deposit from incorpor­
ated banks and trust’companies and from responsible and recognised
dealers in investment securities.

Tenders from,others must be accom­

panied by a deposit of 10 per cent of the face amount of Treasury bills

EOR RELEASE, MORNING PAPERS,
Friday, October 7, 1938.

TREASURY DEPARTMENT

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

90-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 10, 1938.
Tenders will not be received at the Treasury Department Washington«
The Treasury bills will be dated October 13, 1938, and will mature on
January 11, 1939, 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 denomi­

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 loss 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 recognised 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 October 10,
1938, 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 October 13, 1938.
The Treasury bills ?/ill 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.

(Attention is invited to

Treasury Decision 4550, ruling that Treasury bills are not exempt from the gift
tax.)

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.
— oOo—

"Sometimes the carrier state lasts a long time*

Tests say then be

to see if the bacilli are still virulent— that is, capable of causing the disease,
This cannot be told by simple microscopic examination-.

If the bacilli are found

to be no longer virulent* the patient may be released*

Otherwise * he must be

treated until successive tests prove that the bacteria have disappeared*11
The public health control of diphtheria depends upon several factors*
lost important of these, from the Service standpoint* is th© prompt reporting of
cases for isolation and quarantine until officially released*

All discharges fro® I

the patient and all articles need by him should be disinfected and a thorough
cleaning

of the sick room made after the patient leaves it*

Since diphtheria is

occasionally carried in milk* where a case or carrier has been employed in its
preparation, the use of pasteurised milk only should be encouraged*

There should

also be thorough control of the carriers discovered by bacteriological examinations!
Finally* antitoxin should be made available to everybody and free to the poor*

■iHHMHHHHHHi#

DBthe

10/ 3/38

be given to a school child whenever an undue prevalence of diphtheria occurs in the
school or community*
•The patient with diphtheria begins to show symptoas in fro® two to five I
days after exposure*
good*

Its treatment is a task for the doctor.

Home remedies do no I

they waste valuable time, give a false sense of security, and are not based I

on a proper diagnosis.

A doctor should be called promptly when there are symp­

toms of sore throat with slid fever, or even of indefinite illness where the cause I
is not apparent*

He will administer the antitoxin if in his judgment it is neededJ

and use an appropriate surgical procedure if this is essential to save life.*
The disease may be conveyed to another 'person as long as the bacilli, in I
virulent form, remain in the patient or "carrier"•

This may be, weeks, even months.I

It is usually contracted by. contact with the sick person or carried, by droplet
infection, or by handling' recently soiled articles.

Sometimes it is conveyed in . I

milk or ic© cream, in which case extensive epidemics m y be caused which are
almost explosive in their suddenness.
Diphtheria is a condition in which carriers play an important part.
People may be immune to the toxin of diphtheria, yet at the same time the bacilli
may live in their throat© and noses.
in no danger themselves.

They are thus a danger to other people while 1

Convalescents may be carriersj and so may persons who

have had no attacks of diphtheria, or such mild ones, usually called "missed cases”*
that they are not recognised.
"It is very important for health departments to know about these carriersJ"
(/¡¡Jrj o l d U ^
-further■wnnifts Dr* Thoapsoiy^ "This is on© reason why every case of the disease BhoÆ
be reported.

Cultures can be taken fro© the nose and throats of person© recovering

from diphtheria, and the time of disappearance of the bacilli determined.

Previous

to that time, the individual should b© isolated from contact with well persons who 1
are not immune.

— 2 •*

"Thanks to modern research, however, there are now few diseases about
which so much is known*

It© cause and modes of transmission are known{ its spread j

can be checked; and medicine possesses specific preventives, a precise measure of I
susceptibility, and a curative agent of great potency.

Both prevention and control

are therefore entirely feasible, according to the Public Health Service, provided
the intelligent cooperation of health authorities, medical profession, and the
general public is assured.
"People are beginning to fell that It is eminently more desirable to
attempt protection against a disease, where that is possible, than to fall prey to 1
its ravages and take a chance on recovery.

The modern preventives— toxin-antitoxin

plain toxoid, and alum precipitated toxoid«— for the great majority of children, ar-sj
almost sure protection against the disease in later life.

Diphtheria toxoid, pre~ ]

pared from chemically treated toxin, has largely replaced the toxin-antitoxin mix- I
tures within the last five years.

It is generally administered in one, two or

sometimes more injections, depending on the doctor*©, or health officer*s, prefer-]
©nee or judgment In these matters.*
Whether a person is immune to diphtheria or not may be determined by the 1
Schick test.

This- consist© of injecting a minute measured amount of toxin between I

the layer© of the skin of the forearm.

If the person is immune no reaction occurs;

if not immune, a small area of redness develops and persists for about three days
at the place of injection.

Schick tests should be made three to six month© after

the preventive inoculations in order to learn whether they have been effective.
This is because some persons are harder to immunise than others and require more
injections than are routinely given.

Further inoculations should depend upon the

result of this test* .
"Just prior to admission to school," continue^ Dr. Thompson, "the "chick j
test should be repeated to determine the susceptibility of the child at that time.
?o itive reactors should receive the inoculation.

Thereafter a Schick te st should

Treasury Department
ü* S* Public Health Service
Washington

baSiest

it strikes oftenest, among the whole popula-^

tion, those children between the ages of five and seven} it kills oftenest, between
three and four#
every ten children who will contract the
disease this fall, one will die of it#
Last year, 28,536 cases of diphtheria were reported in the United States}
•fkASg,
3,18-4 of %i^«4attB&K?"M\1^1udi&i figures fro® Maine and lew Hampshire, which have
not yet been received) died#

According to tbs latest census reports, more than

three-fourth© of all those who died fro® it in 1935 were babies «ho had not reached]
their fifth year of life, and three out of every ten of those were either three or
four years old#

These percentages, according to t h e P u b l i c Health Service,

apply equallywwife to the later

f

Hormal characteristic features of the prevalence curve for diphtheria
are its gradual rise beginning in August, the plateau in October and November, the
decline during December and the succeeding months, to the losest incidence fro®
May to August#

Once started, however, an epidemic may run its course uninfluenced

by the season of the year*
"Until scientific discoveries revealed the causa and the methods for the
cure and control of diphtheria,"

Dr# L* R* Thompson, Director of the National

Institute of HealuH^ *few diseases had presented such high mortality, or before
N
whose onsets mankind was so helpless. An outbreak of diphtheria in a community
caused a shudder of horror#

The old records are full of instances where all the

children of a family were swept away in spite of what medical knowledge of that
time could do#

TREASURY DEPARTMENT
U.S. Public Health Service
Washington
EOR RELEASE, AFTERNOON NEWSPAPERS,
Friday, October 7, 1938._________
10/6/38.
;
'
~~
Diphtheria preys primarily upon babies:

Press Service
No. 14-85

It strikes oftenest, among

the whole population, those children between the ages of five and seven; it
kills oftenest, between three and four.
Experience shows that of overy ten children who will contract the
disease this fall, one will die of it.
Last year, 28,536 cases of diphtheria were reported in the United
States; 3,184 of those stricken (excluding figures from Maine and New Hamp­
shire, which have not yet been received) died.

According to the latest

census reports, more than three—fourths of all those who died from it in
1935 were babies who had not reached their fifth year of life, and three
out of every ten of those were either three or four years old.

These per­

centages, according to the United States Public Health Service, apply equally
to the later years*
Normal characteristic features of the prevalence curve for diphtheria
are its gradual rise beginning in August, the plateau in October and November,
the decline during December and the succeeding months, to the lowest incidence
from May to August*

Once started, however, an epidemic may run its course

uninfluenced by the season of the year.
•'Until scientific discoveries revealed the cause and the methods for
the cure and control of diphtheria," Dr. L. R. Thompson, Director of the
National Institute of Health said today, "few diseases had presented such
high mortality, or before whose onsets mankind was so helpless.

An outbreak

pO
/

of diphtheria in a community caused a shudder of horror.

The old records

are full of instances where all the children of a family.were swept away
in spite of what medical knowledge of that time could do.
"Thanks to modern research, however, there are now few diseases
about which so much is known.

Its cause and modes of transmission are

known; its spread can be checked; and medicine possesses specific preventives,
a precise measure of susceptibility, and a curative agent of great potency.
Both prevention and control are therefore entirely feasible, according to
the Public Health Service, provided the intelligent cooperation of health
authorities, medical profession, and the general public is ensured.
"People are beginning to feel that it is eminently more desirable
to attenpt protection against a disease* where that is possible, than to
fall prey to its ravages and take a chance

on recovery.

The modern pre­

ventives— toxin-anti toxin, plain toxoid, and alum precipitated toxoid— for
the great majority of children, are almost sure protection against the disease
in later life. Diphtheria toxoid, prepared from chemically treated toxin,
has largely x^eplaced the toxin-antitoxin mixtures within the last five years.
It is generally administered in one, two or sometimes more injections, de­
pending on the doctor*s, or health officer's, preference or judgment in
these matters."
Whether a person is immune to diphtheria or not may be determined
by the Schick test.

This consists of injecting a minute measured amount

of toxin between the layers of the skin of the forearm.

If the person is

immune no reaction occurs; if not immune, a small area of redness develops
and persists for about three days a„t the place of injection.

Schick tests

3

should be made three to six months after the-preventive inoculations in
order to learn whether they have been effective.

This is because some

persons are harder to immunize than others and require more injections
than are routinely given.

Further inoculations should depend upon the

result of this test,
’’Just prior to admission to school,1’ continued Dr.. Thompson, ’’the
Schick test should be repeated to determine the susceptibility of the child
at that time*

Positive reactors should receive the inoculation.

Thereafter

a Schick test should be given to a shcool child whenever an undue prevalence
of diphtheria occurs in the school or community.
’’The patient with diphtheria begins to show symptoms in from two to
five days after exposure.
remedies do no goodi

Its treatment is a task for the doctor.

Home

they waste valuable time, give a false sene© of secur­

ity, and are not based on a proper diagnosis.

A doctor should be called

promptly when there are symptoms of sore throat with mild fever, or even of
indefinite illness where the cause is not apparent.

He will administer the

antitoxin if in his judgment it is needed, and use an appropriate surgical
procedure if this is essential to save life.”
The disease may be conveyed to another person as long as the bacilli,
in virulent form, remain in the patient or "carrier”.
even months.

This may be weeks,

It is usually contracted by contact with the sick person or

carried, by droplet infection, or by handling recently soiled articles» Some­
times it is conveyed in.milk or ice cream, in which case extensive epidemics
may be caused which are almost explosive in their suddenness,
■Diphtheria is a condition in which carriers play an important part*
People may be immune to the toxin of diphtheria, yet at the same time the
bacilli may live in their throats and noses.

They are thus a danger to other

-

4

people while in no danger themselves.

Convalescents may he carriers;

and

so may persons who have had no attacks of diphtheria, or such mild ones,
usually called “missed cases“, that they are not recognized*
“It is very important for health departments to know about these
carriers,“ Dr* Thompson warned.
disease should he reported.

“This is one reason why every case of the

Cultures can ho taken from,the nose and throats

of persons recovering from diphtheria, and the time of disappearance of the
bacilli determined.

Previous to that time, the individual should he isolated

from contact with well persons who are not immune.
“Sometimes the carrier state lasts a long time.

Tests may then he

made to see.If the bacilli are still virulent— that is, capable of causing
the disease©

This cannot he told by simple microscopic examination. If the

bacilli are found to be no longer virulent, the patient may bo. released*
Otherwise,.he must be treated until successive tests prove that the bacteria
have disappeared*“'
The public health control of diphtheria depends upon several factors*
Most important of these, from the Service standpoint, is the prompt reporting
of cases for isolation and quarantine until officially released. All discharges
from the patient and all articles used by him should be disinfected and a
thorough cleaning of the sick room made after the patient leaves it.

Sine©

diphtheria is occasionally carried in milk, where a case or carrier has been
employed in its preparation, the use of pasteurized milk only should be en­
couraged.

There should also be thorough control of the carriers discovered

by bacteriological examinations.

Finally, antitoxin should bo made available

to everybody and free to the poor.

--0O0— .

would ▼tolat« Saetím 211, that aleo feaa ìm m

im

positi®» of ih#

Treaauty» la additi»», I am «ara jr<m «ili agra« «iih
»•ferali«* io Bt*ch special eowsitiae la a

m

thai pour

io Imi oae of

aaay possibl© devio®« prohibíted by ih* te*» *direcily $£ indirecti»*
la Sectlon 2XX* fhe laetruetione glvasa io Tra*«turar employaee by ili»
ciréaleti.m of

to

m 1982 mentimed abavo «ere noi Itntiad io any tingi#

deviea*
Again X a» pla&oad io obterve timi yonr Connitt#efs regpoase
io ay third and final questio» «srely «tata« «hai, in affaci, ili#
fre&sury B#|iartas#nl «tetad to all Ita eaployeee on Sapieaber 10, 1 9 M
in ih# nudarlined porti©» of peragraph 2 of thè franamy*# regulati m a
of ih&t datai

•fhe iaetruaüoa aoatainad in aaJLd cimila» ehmld noi
fea conatruedi * * *
*2» To provasi any «neh awployaa firn, voluntarily
eontribotiag io ih® cmpaig» fuad of thè party of hi# cholee*
if «neh contribuii©!! la nada fraaly «nd without «©«reio r or
lapropav solicli&Uoa,
.

I appreei&t© yoar cooperatila bacasse thè aubject la, &a 1 bava
advlsed y o % m a la «hloh X bava takan a gre&t doni of intarmi over
sino© 1 aaauned #y prosami duiiae*
Vary truly prora»

|||8 ¡f| floteé
Secretar^,

Honorable Morris Shappard
Chaira«»
Special Cosmi ttee io Investigaie
Caapalgn Spendi torea
Saltad Stata# Sanata

QdC

1 °'

/*

Sy dear Beaator Sheppardi
I bave reeeived y©ur I H t t r of October 7, 173# la answer
to sy letter of Sejyteaber 9# X93& &ad I appr^eiste yoar i»*po»§e
to *y requeet far your obcerr&tlan* oa thè «pirli a* i t U a» ih«
letter of thè la* gov^rnlag politicai coatrlfeutioa* fcy Federai

Befarriag io your «a»«** io ay first questi sa, I a® granfio*!
t© l e & m th&t your Conalttee 1» of thè opini©» timi thè Treaeuxy
regalati©»« are noi repugaaat 'io ©ither thè lottar or ih® «pirli of
thè la**

Coaeeralng your furlher suggeetioa la ibis

that

ili® Bepart®e»t#g regolano»* «hould saake speciflc referene* io Beotioa
211, Title 18* !♦#* Odile, I aiey gay th&t United Stale» ©teli fenice
Coaoiggioa Fora So* 1982* earaiag agelaei politieal adiriti®«, eoa*

t&lm e «pecifle refereaee io, and a parapfcraa* of, S e d i ©a 211 («ee
copie* attaehed),

The fre&sury Departaeat oa ¿ime 5, if34 and

Augnai 23, 1938 eireulated ibi« Fora io eli thè eaployees of thè Bepart-

acni*
I tm further gratified io noie that your rie*« la reepoaee te

W

«aecnd quedioa coincide elth thè opinion la thè Tre&gury Departmeai

that li 1» aot a rio!®ilo« of thè le» for « Federai eaployee io moke
a folant&iy comtrlbutloa lo a politicai party*

Cooeexialisyg. your

furihtr ©beerratioa tbet contribution» by Ibéeral eap&oyeas t© asy
special cosai ttce pronotiag thè caspalgn of a Seaator or Hepreeentaiire

in d ir e c tly * tc the campaign o f m y Sanato?» o r Mmbar of* or ©»legai# to Congrega
or B#atd#»i Cosmlssioner* whether in ih» prias?? o r i n the general e le c tio n *

lours very truly*
/#/ Morris Sheppard
Chalraan*
Son* Henry Morgen than, Jr*,
Scoro in ry of the Treasury,

Washington* ©• €«

Washington, i* C.,
Ostober % 1938.
%■

émr

Mr# Seeretary*

I m direeied by ih# Special Cornaitiee to Im m tifata Sanatortai Canpalgn
Expenditure» and Use
Q o m m m m t m l Fonde to aake reply to your X#ti@r #f S*p~
teaber 9, 193$, li tritigli yoa propounded thè folloning ibre# guestioaet
©

f

#( y

le it your vtew th&i thè freasury raglilationa, ©opina ©f which bar*
baso & m t to yo», parseli net» uhi eh are repugaant t thè lettor or
apirit of thè l&wf

*(2)

Co you ooatend th&t it la a violati©» of thè I m t o r a Federai
eaployee to m k e a volti»tsry contribuii©n to thè caapaign ftaad or to
thè genomi fonda ©f a politimi party*

*(3)

le it your positi©» that it la a risiati©» of thè iaw for sueh a»
eaploye# to a l e a voluaiary contributi©» to a ftmd witich le to b#
uaed. for thè purpose ©f adwcating a partie>ilar candidate for Federai
office in a pria&ry c&apaigaf#

In anawer to your fimi questi©», thè Coaadit®# la of thè opinion that thè
Treaaury reguletiona are not ropupumt to thè lettor or apirit of thè Ine, bui that
thay do not ©over thè aubject. fheae regolntioag do not ©all attenti©» to Seetion
211| litio 10, C* S. Code (Criminal Code, Senti«a 121) ahieh specifica-lly forbide
evory offioer, Clark, oàr other perno» la'thè »arrice ©f thè United itatea,
*direetly or indireetly, to givo or hand w r to any otfaer offieer, dark, or
pera©» in thè servio# of thè llnited States, or to aay Senator, or Meateor ©f, or
delegate to Congrega, or Sesideni Cowaissloner, any aoney or othsr valuable thlng* ■
for a politicai purpoae* lt is thè opinion of thè C©malti®« that tbts sesti©»
»pecific&lly ppoMMt» a»y empisse of thè United State® fro» mekj-ng any contri—
butto», directly or tadtractly, to m j Senator, or Mesh*? of, or delegate to
Congreso, or- Wssident Coamiaeloner,. for ssy politicai parpóse*

In m m m r to thè second question, it i» thè opinion of thè Comitttm that
it la not § violation of thè la# for a f edemi estployee to moke e volunt&fy contributi©» to a politieni party* thè prohifeitia» of aceti©» 2U, to which alluaim
ma Just beem m ó m , relates to vduntary oontributiona to individual cambera of
thè Beante or tona# of Representativas, and, in thè opinion of thè Cosaittec, thie |
prohibítío» includes oontributiona to any special cosuaittees, orgenieed for thè
purpoee of presoting ih# easpaigm of a Sea&tor or ilepresentative*
la suonar to thè third questi©», it le thè opinion of thè Coamittee that m
Federal esplpyee soy lepùly coatribute, voluatarily or ethemiee, directly or

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
Monday, October 10, 1938.

Press Service
No. 14-86

Secretary Morgenthau today made public his reply, dated Monday, October
10, to a letter dated October 7 from Senator Morris Sheppard, Chairman of the
Special Committee of the Senate to Investigate Campaign Expenditures,

Copies

of both letters arc attached?

H

-

2Washington, D.C.,
October 7, 1938,

My dear Mr. Secretary:
I am directed by the Special Committee to Investigate Senatorial Campaign
Esq)enditurcs and Use of Governmental Funds to make reply to your letter of
September 9, 1938» in which you propounded the following three questions:
n(l)

Is it your view that the Treasury regulations, copies of which have
been sent to you, permit acts which are repugnant to the letter or
spirit of the law?

«(2)

Do you contend that it is a violation of the law for a Federal
employee to make a voluntary contribution to the campaign fund or
to the general funds of a political party?

II(3)

Is it your position that it is a violation of the law for such an
employee to make a voluntary contribution to a fund which is to be
used for the purpose of advocating a particular candidate for
Federal office in a primary campaign? **

In answer to your first question, the Committee is of the opinion that the
Treasury regulations are not repugnant to the letter or spirit of the law* but
that they do not cover the subject. Those regulations do not call attention to
Section 211, Title 18, U.S. Code (Criminal Code, Section 121) which specifically
forbids every officer, clerk, or other person in the service of the United
States, ndirectly or indirectly, to give or hand over to any other officer, clerk,
or person in the service of the United States, or to any Senator, or Member of,
or Delegate to Congress, or Resident Commissioner, any money or other valuable
thing11 for a political purpose. It is the opinion of the Committee that this
section specifically prohibits any employee of the United States from making any
contribution, directly or indirectly, to any Senator, or Member of, or Delegate
to Congress, or Resident Commissioner, for any political, purpose.
In answer to the second question, it is the opinion of the Committee that
it is not a violation of the law for a Federal employee to make a voluntary con­
tribution to a political party. The prohibition of Section 211, to which allu­
sion has just been made, relates to voluntary contributions to individual members
of the Senate or House of Representatives, and, in the opinion of the Committee,,
this prohibition includes contributions to any special committees, organized for
the purpose of promoting the campaign of a Senator or Representative.
In answer to the third question, it is the opinion of the Committee that no
Federal employee may legally contribute, voluntarily or otherwise, directly or
indirectly, to the campaign of any Senator, or Member of, or Delegate to Con­
gress, or Resident Commissioner, v/hether in the primary or in the general election*

Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D.G.

Yours very truly,
(s) Morris Sheppard
Chairman

— 3 October 10, 1938.
My dear Senator Sheppard;
• I have rccoived your letter of October ?, 1938 in answer to ny letter of
September 9, 1938 and I appreciate your response to ny request for your obser­
vations on the spirit as well as the letter of the law governing political
contributions by federal employees.
Referring to ycur answer to ny first question, I an gratified to learn
that your Connittee is of the opinion that the Treasury regulations are not
repugnant to either the letter or the spirit of the law. Concerning your
further suggestion in this connection that the Department*s regulations should
make specific reference to Section 211, Title 18, U.S. Code, X nay say that
United States Civil Service Connission Form No. 1982, warning against political
activities, contains a specific reference to, and a paraphrase of, Section 211
(see copies attached).
The Treasury Department on June 5, 1934, and August
23, 1938, circulated this form to all the employees of the Department.
I an further gratified to note that your views in response to ny second
question coincide with, the opinion in the Treasury Department that it is not
a violation of the law for a federal employee to make a voluntary contribution
to a political party. Concerning your further observation that contributions
by federal employees to'any special committee promoting the campaign of a
Senator or Representative would violate Section 211, that also lias been the
position of the Treasury. In addition, I am sure you will agree with me that
your reference to such special committee is a reference to but one of many
possible devices prohibited by the tern ^directly or indirectly1* in Section 211*
The instructions given to Treasury employees by the circulation of form 1982
mentioned above were not limited to any single device.
Again I am pleased to observe that your Committee *s response to my third
and final question merely states what, in effect, the Treasury'Department stated
to all its employees on September 10, 1934 in the underlined portion of parar*
graph 2 of the Treasury1s regulations of that date;
nThe instruction contained in said circular should not
bo construed; * * *
rr2. 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
iriproper solicitation, and is net made to a person in the
service of the United States.H
I appreciate your cooperation because the subject is, as I have advised
you, one in which I have taken a great deal of interest ever since I assumed
my present duties.
Very truly yours,
(s) HENRY MORGENTHAU, JR.
Honorable Morris Sheppard
Secretary.
Chairman, Special Committee to
Investigate Campaign Expenditures
United States Senate.
— oOo—

treasury d s p a u so t t

Washington
FOR HSLH4S«, M

Ü

NSISSPAPKRS

Prass Sarrias
11|

^"7

91» Secretary of the Treasury announced last evening that the
tenders for #3.00,000,000, or thereabouts, of 9Q~da? Treasury bills, to
ho dated October IS, 1158, and to mature January U , 1939, whleh «ore
offered on October 7, «are opened at the Federal Reserve banks on
October 10*
The detalla of this issue are as fellow*!
M * 1 applied for
Total accepted

* #48i,758,000
- 100,080,000

Range of accepted bidet
High
low
Average price

* 100*
* 97«898
- 99.998

Equivalent rats 0.084 percent
Equivalent rate approximately 0.088 percent

(79 percent of the amount bid for at the low price was accepted)

TREASURY DEPARTMENT
Washington
EOR RELEASE, MORE IDG- NEWSPAPERS,
Tuesday, October 11, 1938. ___

Press Service
No. 14-87

id / 10 /3 8 .
Tiie Secretary of the Treasury announced last evening that the
tenders for $100,000,000, or thereabouts, of 90-day Treasury hills, to
he dated October 13, 1938, and to mature January 11, 1939, which were
offered on October 7, were opened at the Federal Reserve banks on
October 10.
The details of this issue are as follows:
Total, applied for
Total accepted

- $425,732,000
- 100,040,000

Range of accepted bids:
High
Low
Average price

- 100.
-

99.994 Equivalent rate............ 0,024 percent
99,995 Equivalent rate approximately 0.022 percent

(79 percent of the amount bid for at the low price was accepted)

— oOo—

IMPORTATIONS Of CATTLE, CREAM ARC CERTIFIED SKID POTATOES
ORDER THE QUOTA PROVISIONS Of THE CARADIAR TRADE AGREEMENT
Preliminary figures as of Ootober 1, 193d

Customs District

f
♦
m
January 1 to October 1. 1938
s
CATTLE
: CATTLE 700# î DAIRY COES ♦
OR MORE
: 700# OR MORE l CREAM
: ORDER 175# :
(Head)
;
(Bead)
:
(Head ) . ....jl

TOTAL IMPORTS
Percent of Quota

36,198
69.751

69,219
44.4*

FROM CANADA
Alaska
Buffalo
Chicago
Dakota
Duluth & Superior
Florida
Maine & N. E.
Massachusetts
Michigan
Minnesota
Montana & Idaho
New York
Omaha
Oregon
Philadelphia
St. Lawrence
Vermont
Virginia
Washington
Total from Canada

3,43d
•
181
1
*
101
«
43
1,453
@9
17,419
•
•
5,552
497
*
3 «340
34,132

8,304
381
2,364
33
*
22
23
2,567
19,610
2,361
211
21
139
557
169
3.289
40,073

FROM MEXICO
Arizona
£1 Paso
San Antonio
San Diego
Total from Mexico

758
743
561
10
8,066

7,374
16,745
3,069
1.938
29,146

FROM OTHER COUNTRIES
Puerto Rico

m
m

5,036
25.251

4
36
•
1

443
30
1
24
•
«
•
987
3,180
330
5,036

» .
«*
»
-

m
m

4,962
0.3%

3
182
*•
»
86
*
»
»
*
•
19
4,233
4,523

# Dec. 1,1937 to i
• Oct. 1. 1938
♦
# WHITE OR IRISH I
* SEED POTATOES
■
*#—
(Hounds)
I
31,151,824 I
69.2$ 1

•
160,770

m
109,500
40,380
2,497,480
3,116,964
3,944,554
1,276,290
•
*
18,774,846
415,316
800
40,280
761,944
12,700
31,161,824

»
•
•
~

439

(Prepared by Division of Statistics and Research, Bureau of Customs)

•
•
*

m
•

1
|

|
1

PRESS m & jSSB

Iks Cosmi ss loner of Customs today announced preliminary figures
for imports of cattle , cream and certified seed potatoes* under the
quota provisions of the Canadian trade Agreement» as of

October 1» 1938

and the percentage that such importa bear to the totals allowable
under the quota provisions» as follow»:

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday » October 11, 1938.

Press Service
No. 14— 88

The Commissioner of Customs today announced preliminary figures for
imports of cattle, cream and cer ;ified seed pota toes,:under the quota provisions
of the Canadian Trade Agreement, as of October 1 , 1938, and the percentage that
such imports hear to

the totals allowable under the quota provisions,.as follows}

Customs District

Dec.1,1937 to
Oct. 1,1938
January 1 to October' 1, 1938
:
:WHI TE OR
CATTLE
: CATTLE 700#:DAIRY COWS
UNDER 175# : OR MORE : 700# OR MORE:CREAM :IRISH SEED
:(Gal.) :P0TAT0ES(lbs)
(Head)
:
(Head)
:
(Head)
31,151,824
69.2$;

TOTAL IMPORTS
Percent of Quota

36,198
69.7$

69,219
44.4$

FROM CANADA
Alaska,
Buffalo
Chicago
Dakota
Duluth & Superior
Florida
Maine & N.H.
Massachusetts
Michigan
Minnesota
Montana & Idaho
New York
Omaha
Oregon
Philadelp hi a
St. Lawrence
Vermont
Virginia
Washington
Total from Canada,

5,454
—
181
1
—
101
45
1,453
89
17,419
5,552
497
3,340
34,132

8,304
381
2,364
33
■—
22
25
2,567
19,610
2,361
211
21
159
557
169
3,289
40,073

443
30
1
—
24
—
—
987
3,180
330
5,036

182
86
19
4,233
4,523

FROM MEXICO
Arizona
El Paso
San Antonio
San Diego
Total from Mexico

752
743
561
10
2,066

7,-374
16,745
3,069
1,958
29,146

-

-

-

-

«

439

-

FROM OTHER COUNTRIES
Puerto Rico

-

— oOo—

5,036
25.2$

4
36
1

m
—

4,962
0.3$

3

160,770
109,500
40»380
2,497,480
3,116,964
3,944,554
1,276,290
- .
18,774,846
-

m
415,316
800
40,280
761,944
12,700
31,151,824

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Tuesday, October 11, 1938

PRESS SERVICE
No. 14-89.

The Acting Comptroller of the Currency today announces
the reestablishment at Richmond, Virginia of the office of
Chief National Bank Examiner for the Fifth Federal Reserve
District.

That district includes the states of Maryland,

Virginia, West Virginia, North Carolina, South Carolina, and
the District of Columbia.

This change of the District office

from Washington, where it has been located for the past 16
years, to Richmond will facilitate the work of the Comptrol­
ler’s office and will be a convenience to the national banks
located in the territory it serves.

Examining policies and

procedure will not be effected by the change.
Mr. Jennings L. Bailey has been appointed Chief National
Bank Examiner for the Fifth-Federal Reserve District, and will
be in charge of the office at Richmond.

Mr. Bailey is 40 years

of age, is a native of Virginia, and is well known to the
bankers throughout the district.

He has been connected with

the examining force of the Comptroller’s office since 1920,
except for a period of 4 months in 1933, when he was detailed
to assist the Federal Deposit Insurance Corporation in the
capacity of Supervising Examiner at Richmond.

Mr. Bailey has

examined banks in practically all sections of the district and
for the pa,st five years has had headquarters at Baltimore,
Maryland.

BTGBTS 0? DOUGLAS FIB AMD M
HKMLOGK B8BER 3gg
QUOTA PROVISIONS OF fiflE CANADIAN TRADE A G H E M »
Preliminary Figure« for the Period January 1 to October 1, 1938

Customs District

TOTAL IMPORTS
Percent of Quota

s Sawed Timber and Lumber
: DOUGLAS
j IESTERH
hemlock
f
™
$
s (Bd.Ft*} .
{Bd*Ft,)
75,751,889

24,426,338

Mot Specially
j MIXED FIS
* k HEMLOCK
,
26,825,945

Provided for
9 TOTAL FIR
i Sb HEMLOCK
i tBd. Ft*)
127,004,172
50*84

FROM CANADA
Alaska
Buffalo
Chicago
Connecticut
Dakota
Duluth k Superior
Iowa
Los Angeles
Maine k K* H.
Massachusetts
Michigan
Montana k Idaho
Mew York
Philadelphia
Rhode Island
St* Lawrence
San Francisco
Vermont
Washington

528,258
1,455,635
48,606
3,320,736
14,339,663
8,159,277
25,366
16,699,759
103,433
8,110,987
82,7m
15,084
13,244
12,140,583
530,883
35,512
260,315
285,915
9,595,803

«*

©27,299
*9* •

38,059
2,024,098
3,175,425
as

346,949

m

ee
19,223
*
**

ea
58,525

*

12,658,779
265,543
*
-

3,816,377
668,879
«*

150,598
60,OCX)
394,532

<ee
m
m

26,667,722
ea

150
•
as

80,323

528,258
2,282,934
67,829
3,358,795
16,363,761
11,334,702
25,366
17,105,233
103,483
20,769,766
348,324
15,084
26,680,966
15,956,959
1,199,762
35,662
410,915
345,915
10,070,460

(Prepared by Division of Statistics and Research, Bureau of Customs}

MH. GASTON
(Attention of Mr. Sehwars, Boom 239, Treasury Building)
FROM THE COMMISSIONER OF CTBTOS:
There is attached for irrmedi&te release a tabulation showing
imports of Douglas fir and Western hemlock, under the quota pro­
visions of the Canadian Trade Agreement, as of October 1, 1938.
When the release has been mimeographed, please
copies forwarded to Miss Henry* Boom 415* Washington Building*

Jii 10/11/38

BiSSS

The Commissioner of Customs today announced preliminary
figures for imports of Dowlas fir and Western hemlock, under the
<|uota provisions of the Canadian Trade Agreement ( as of October 1*
1938, and the percentage that sudi imports bear to the total
allowable under the quota provisions, as follows;

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, October 12,1938.

Press Service
No. 14-90

The Commissioner of Customs today announced preliminary figures for
imports of Douglas fir and Western hemlock, Under the quota provisions of the
Canadian Trade Agreement, as of October 1, 1938, and the percentage that such
imports bear to the total allowable under the quota provisions, as follows;

Customs District

TOTAL IMPORTS
Percent of Quota

: Sawed Timber and Lumber Not Specially Provided for
: TOTAL FIR
: DOUGLAS
: WESTERN
: MIXED FIR
; & HEMLOCK
: FIR
: HEMLOCK
& HEMLOCK
: (Bd.Ft.) .
: (Bd.Ft.)
ï (Bd.Ft.). : (Bd.Ft.)
75,751,889

24,426,338

26,825,945

127,004,172
50.8#

528,258
1,455,635
48,606
3,320,736
14,339,663
8,159,277
25,366
16,699,759
103,483
8,110,987
82,781
15,084
13,244
12,140,582
530,883
35,512
260,315
285,915
9,595,803

—
827,299
•r
38,059
2,024,098
3,175,425

«
—
19,223
—
—

528,258
2,282,934
67,829
3,358,795
16,363,761
11,334,702
25,366
17,105,233
103,483
20,769,766
348,324
15,084
26,680,966
15,956,959
1,199,762
35,662
410,913
345,915
10,070,460

FROM CANADA
Alaska
Buffalo
Chicago
Connecticut
Dakota
Duluth & Superior
Iowa
Los Angeles
Maine & N. H.
Massachusetts
Michigan
Montana & Idaho
New York
Philadelphia
Rhode Island
St. Lawrence
San Francisco
Vermont
Washington

—

346,949
—

12,658,779
265,543
—
—
3,816,377
668,879
150,598
60,000
394,332

— oOo—

—
—

58,525
-

26,667,722
—
-

150
—

80,325

IMPORTS OF COMMODITIES FROM THE PHILIPPINES UNDER QUOTA
PROVISIONS OF PHILIPPINE INDEPENDENCE ACT AND CORDAGE ACT OF 1935
Preliminary Figures, as of October 1, 1938

s
January
:
Customs District
: COCONUT OIL
_____________________ :
(Pounds)
TOTAL IMPORTS
Percent of Quota
Gralveston
Hawaii
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
Rhode Island
San Antonio
San Francisco
Virginia
Washington

1 to October
:
REFINED
:
SUGAR
:
(Pounds)

257,900,098
57.6$

24,838
6,078,634
1,890,330
46,823,510
40,233,198
135,873,475
6,644,920
89,594
-

19,554,779
-

686,820

1, 1958_______ : May 1 to Oct.
:
UNREFINED :
1, 1958
:
SUGAR
:
CORDAGE
:
(Pounds) :
(ftounds

94,511,897
84.4$

-

20,893,468
-

24,876,629
-

1,633,609,728
91.2$

15,773
529,805
170,484,492
65,511,770
238,025,079
685,113,536
91,577
436,347,045

-

—

—

-

-

—

-

48,741,800

37,094,746
-

395,905

682,052
11.4$
36,959
82,838
104,469
«

10,832
64,927
-

12,704
54,508
30,703
5,171
259,149
8,497
11,295

(Prepared by Division of Statistics and Research, Bureau of Customs)

PRESS RELEASE

The C om m ission er o f Custom s to d a y an nou n ced p r e l im in a r y
f i g u r e s f o r im p o rts o f co m m o d ities com ing i n t o th e U n ite d S t a t e s
fro m t h e P h i l i p p i n e I s l a n d s u n d er th e q u o ta p r o v i s io n s o f th e
P h i l i p p i n e In d ep en d en ce A c t , d u rin g t h e p e r io d J a m a r y 1 t o
O c to b e r 1 , 1 9 3 8 , and u n d er t h e C ord age A ct o f 1 9 3 5 , d u rin g t h e
p e r io d May 1 t o O c to b e r 1 , 1 9 3 8 , a l s o th e p e r c e n ta g e t h a t su ch
im p o rts b e a r t o t h e t o t a l s a ll o w a b le u n d er t h e q u o ta p r o v i s i o n s ,
a s fo llo w s :

OFFICE OF THE COMMISSIONER OF CUSTOMS

OCT 1 8 1938

TO MR. GASTON
( A t t e n t i o n o f M r. S ch w a rz , Room 2 8 9 , T r e a s u r y B u ild i n g )
FROM THE COMMISSIONER OF CUSTOMS:

T h e re i s a t t a c h e d a t a b u l a t i o n f o r im m ed iate r e l e a s e show ing
p r e l im in a r y f i g u r e s f o r im p o rts o f co m m o d ities com ing i n t o t h e
U n ite d s t a t e s fro m th e P h i l i p p i n e I s l a n d s , u n d e r th e q u o ta p r o ­
v i s i o n s o f t h e P h i l i p p i n e In d e p e n d e n ce A c t and t h e C ordage A ct o f
1 9 3 5 , a s o f O c to b e r 1 , 1 9 3 8 .
When t h i s t a b u l a t i o n h a s b e e n m im eographed, p l e a s e h av e 9 0
c o p i e s fo rw a rd ed t o M is s H en ry , Room 4 1 5 , W ash in g to n B u i l d i n g .

S ta

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Thursday, October 15, 1958.
10/12/38.

Press Service
No. 14-91

The Commissioner of Customs today announced preliminary figures for
imports of commodities coming into the United States from the Philippine
Islands under the quota provisions of the Philippine Independence Act, during
the period January 1 to October 1, 1938, and under the Cordage Act of 1935,
during the period May 1 to October 1, 1938, also the percentage that such
imports bear to the totals allowable under the quota provisions, as follows:
î
t
Customs District

TOTAL IMPORTS
Percent of Quota
G-alveston
Hawai i
Los Angeles
Maryland
Massachusetts
New Orleans
New York
Oregon
Philadelphia
Puerto Rico
Rhode Island
San Antonio
San Francisco
Virginia
Washington

January 1 to October
REFINED
: COCONUT OIL
SUGAR
î
(Pounds)
(Pounds)
257,900,098
57.6$

1, 1938
: UNREFINED
:
SUGAR
: (Pounds)

llay 1 to Oct
:
:
:

94,511,897
84.4$

1,633,609,728
91.2#

20,893,468
—
—

15,773
529,805
170,484,492
65,511,770
238,025,079
685,113,536
91,577
436,347,045
_
—
»
37,094,746
«
395,905

_
24,838
6,078,634
1,890,330
46,823,510
40,233,198
135,873,475
6,644,920
89,594
—
—
19,554,779
686,820

24,876,629
—
—
—
«
ü
—
48,741,800

— oOe—

1, 1938
CORDAGE
(Pounds)
682,052
11.4#
36,959
82,838
104,469
».
10,832
64,927
12,704
54,508
30,703
5,171
259,149
8,497
11,295

Lack of uniformity in the method of classifying de ths
according to cause and the fact that a certain number of certificates
were not filed in time to be included^ make It possible that these
preliminary data may in some instances differ from the final figures
subsequently published by the Bureau of the Census* Some deviation
from the final figures for individual states Is also to be expected
because of the provisional nature of the Information* It is
t ¿gjj'; < ^ v;,K
believed, however, that the trend of mortality among the states Is
correctly represented*

Bon BlochiFIS
October 12, 1938

that for the past year* This increase combined with a lower death
r&te^has resulted In

a

crude

rate of natural increase

of

. .
.
^
„ ..
Cfti^hinui
6,0 per 100,000 population compared with the flMfeanlng rate of

4.3 for 1937.
The

downward trend of the death rate

also continues^tMttHMHU

from

tuberculosis

The current rate is 10 peicent less

than the corresponding rate

for

1937* It is possible that the rate

for this year will drop below $0 per 100*000 for the first tine*
The decline in maternal mortality has been even greater
than that from tuberculosis*

It stands at 4*4 per 100,000 live

births*— 15 percent less than that corresponding rate

fo r

1937*

f^lde-spread t t M M R efforts to prevent traffic accidents
are apparently achieving success* The mortality rate fro® auto­
mobile accidents for the half year is 20 percent less than the rate
for the similar period last year* Only four of the states, as a
matter of fact, reported a higher rate than for 1937*
The only important cause of death for which the current rate

is greater than that for 1937 is cancer. Here

m

increase of about

3 pei^sent Is reported*

The serious outbreak of measles which occurred last winter
continued into the second quarter of this year* 4s a result, the
death rate*. 4*5 per 100,000 population-!* more than four times Oast
ye&rj»{jcorrt»ponding rate^Tsilght increases occurred also In the
mortality rates fro® whooping cough, diarrhea, and enteritis Is
children under two years of age*

TREA8UKT D E P A B f U I M T

0* S. Public Health Service
Washington
/ f* '
FOR RELEASE tier- IHaam,
Friday, October 14, 193$

) 4 ' i? x

"U

Unless there is a marked reversal of trend,

m

mortality

rate from all causes of death during the current year will be the
lowest on record, with the possible exception of 1933*
In that year, according to reports compiled and published
today by the United States Public Health Service (Public Health
1 ,K*/

Reports, OctobeiriCfl), the death rate was 10*7 per 1,000 population*
The rate for the first sl^rMnths aMNft~~10 •8— represents
A
" a decrease of 8*5 percent under la s t year*

m m

Every S ta te from which

these p re lim in ary data are available— 42 S ta te s, the D is t r ic t of

Columbia, Alaska, and Hawaii— reported a lower ra te than for 1937*
£j)Although this decrease in the mortality rate is reflected in nearly
all of the Important causes of death, about 60 percent is accounted
for by the decreased prevalence of influensa and pneumonia, ©specially
during the first three months of the year* The death rate from
influensa for the first half of 193$ is only one-third of that for
1937; from pneumonia, only three-fourths of the rate for the correspond
ing period last year.

Another outstanding feature of the mortality record for
the first six months of this year| was the wide-spread decline in
infant mortality* Only five states reported a rate higher than that
£

for last year; the current rate is nearly 9 percent less than for
1937* The birth rate, too, for 193$ has continued slightly above

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, October 14, 1938.
10-13-38

Press Service
No. 14-92

Unless there is a marked reversal of trend, the mortality rate from all
causes of death during the current year will be the lowest on record, with the
possible exception of 1933.
In that year, according to reports compiled and published today by the
United States Public Health Service (Public Health Reports, October 14, 1938),
the death rate was 10.7 per 1,000 population,
months —

10*8 —

The rate for the first six 1938

represents a decrease of 8.5 per cent under last year.

State from ?/hich those preliminary data are available —
of Columbia, Alaska, and Hawaii —

Every

42 States, the District

reported a lower rate than for 1937.

Although this decrease in the mortality rate is reflected in nearly all
of the important causes of death, about 60 per cent is accounted for by the
decreased prevalence of influenza and pneumonia,, especially during the first
three months of the year.

The death rate from influenza for the first half of

1938 is only one-third of that for 1937; from pneumonia, only three-fourths of
the rate for the corresponding period last year.
Another outstanding feature of the mortality record for the first six
months of this year was the wide-spread decline in infant mortality*

Only five

States reported a rate higher than that for last year; the current rate is nearly
9 per cent less than for 1937.

The birth rate, too, for 1938 has continued

slightly above that for the past year.

This increase combined with a lo?/er

death rate, has resulted in a crude rate of natural increase of 6.0 per 100,000
population compared with the corresponding rate of 4.3 for 1937.

*■* 2 ***
The downward trend of the death rate from tuberculosis also continues.
The current rate is 10 per cent less than the corresponding rate'for 1937. It
is possible that the rate for this year will drop below 50 per 100,000 for the
first time*
The decline in maternal mortality'lias been even greater than that from
tuberculosis.

It stands at 4.4 per 100,000 live births— 15 per cent less than

that corresponding rate for 1937.
Wide— spread-efforts to prevent traffic accidents are apparently achieving
success.

The mortality rate from automobilo accidents for the half year is 20

per cent less than the rate for the similar period last year.

Only four of the

states, as a matter of fact, reported a higher rate than for 1937.
The only important cause of death for which the current rate is greater
than that for 1937 is cancer.

Here an increase of about 3 per cent is reported.

The serious outbreak of measles which occurred last winter continued into
the second quarter of this year.

As a result, the death rate, 4.5 per 100,000

population - is more than four times the corresponding rate of last year. Slight
increases occurred also in the mortality rates from whooping cough, diarrhea,
and enteritis in children under two years of age.
Lack of uniformity in the method of classifying deaths according to
cause and the fact that a certain number of certificates were not filed in time
to be included make it possible that these preliminary data may in some instances
differ from the final figures subsequently published by the Bureau of the Census.
Some deviation from the final figures for individual states is also to be ex­
pected because of the provisional nature of the information.

It is believed,

however, that the trend of mortality among the states is correctly represented.

oOo—

For imnedi ate release

Secretary Morga

*

Now Commanding Officer of the Coest Guard Air
Patrol Detachment at Cape May, N. J*, Lieut* Burke has
engaged in a number of other aerial rescue missions
evincing higi qualities of seamanship and flying ability*
Outstanding among these, according to Coast Guard
Headquarters, have been flights to the trawler WILD GOOSE,

S* S. In

k

LEMUEL BURROWS, June 22, 1934; tte the

U. S. S* SALT LAKE CITY, July 9, 1934; to Ocracoke Inlet, N. C
November 22, 1934, and to the S* S* CORNELIA, March 24, 1935*
In each instanceQ Lieut • Burke and his crew brought back a
person seriously injured or desperately ill*
Lieut * Buike was appointed a cadet in the
i
1

j
bfi
ps

aboard a number of vessels an
detailed to duty at the Naval Air Station at Hensacola, Fla*,
in 1930*
1931 p

He was designated a Coast Guard aviator on June 12,

He has set both speed and

service craft*
ooOooo

altitude records for

F or imme d iete rel eas e

Secretary Morgenthau will confer the
Distinguished FLying Cross upon Lieut

L.

.p urke, United

States Coast Guard, at 11:45 o ’clock tomorrow morning in the
Office of the Secretary, Coast Guard Headquarters announced
today.
Third of the Service’s aviators to
he so honored, Lieut. Buj&e was selected for the award by the
Permanent Board of the Coast Guard in j# recognition of a fligh

ISO miles to sea through fog and rain to rescue a
severely injured seaman, whose life was saved by prompt
hos pit ali zati on *
Able to proceed on
bearings because of the adverse weathe.r, L
the seaplane ADHARA from the Coast Guard Air Station at
Gloucester, Mass., to the fishing trawler SHAWMUT.

Heavy

swells about the vessel made the landing and takeoff
exceedingly perilous, according to the citation for the
airport,
award, but the pilot made his way back to Boston
the United States Marine
where a waiting ambulance carried the seaman t o ^ Hospital.

TREASURY DEPARTMENT
Washington

FOR IMi
vED-IATELRET,
R ASE,
Thursday, October 13, 1938.

Press Service
No. 14-93

Secretary Morgenth.au will confer the Distinguished Plying Cross upon
Lieutenant E* L* Burke, United States Coast Guard, at 11:45 o ’clock tomorrow
morning in the Office of 'the Secretary, Coast Guard Headquarters announced today«
Third of the Service’s aviators to he so honored, Lieutenant Burke was
selected for the award by the Permanent Board of the Coast Guard in

recognition

of a flight 130 miles to sea through fog and rain to rescue a severely injured
seaman, whose life was saved by prompt hospitalization.
Able to proceed only on radio bearings because of the adverse weather,
Lieutenant Burke on June 13, 1933, flew the seaplane ADHARA from the Coast Guard
Air Station at Glouchester, Mass. , to the fishing trawler SHAWMUT.

Heavy--swell

about the vessel made the landing and takeoff exceedingly perilous-,--according
to the citation for the award, .but the pilot made his way back to Boston air­
port, where a waiting ambulance carried the seaman to the United States Marine
Hospital.
Now Commanding Officer of the Coast Guard Air Patrol Detachment at Cape
May, N.J., Lieutenant Burke has engaged in a number of other aerial rescue
missions evincing high qualities of seamanship and flying ability.

Outstanding

among these, according to Coast Guard Headquarters, have been flights to the
trawler WILD G00S1, July 31, 1933; to the S.S. LEMUEL BURROWS, June 22, 1934; to
the U.S.S. SALT LAKE CITY, July 9, 1934; to Ocracoke Inlet, N.C., November 22,
1934, and to the S-rS^..-iXR]TELXA+.-March 24, 1935.

In each instance Lieutenant

Burke and-his crew brought bank a person seriously injured or desperately ill.

-2-

Lieutenant Burke was appointed a cade-t in the Coast Guard on April 29,
1934, and, after serving aboard-a number of vessels and at various land
stations, was detailed to duty at the Naval- Air Station at Pensacola, Fla.,
in 1930.

He was designated a Coast Guard aviator on ,June 12, 1931.

set both speed and altitude records for service craft.

— oOo—

He has .

- 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
October 17r 1938____, 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 must be made at
the Federal Reserve Banks in cash or other immediately available funds
on

October 19, 1958______ .
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,

(Atten­

tion is invited to Treasury Decision 4550, ruling that Treasury bills axe
not exempt from the gift tax.)

Ho loss from the sale or other disposition

of the Treasury bills shall be allowed as a deduction, or otherwise recog­
nized, 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.

Bsb&fciMiSxxla:
TREASURY DEPARTMENT

FOR RELEASE, MORITIHG PARERS,

Friday, October 14, 1938«

Si
The Secretary of the Treasury gives notice that"tenders are
invited for Treasury hills to the amount of $ 100,000,000, or thereaheuts»They Trill be ^
highest bidders.

-day hills; and will he sold on a discount basis to the
Tenders will he received at the Eederal Reserve Banks,

or the branches thereof, up to two o ’clock p. m., Eastern Standard time,
on Mondayt October 17, 1958 0

Tenders will not he received at the

Treasury Department, Washington.
The Treasury hills will he dated October 19f 1958 > a*id will
j&adbe
mature on January 18. 1959 , 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-i^e-carrsrihered^'
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 hot he used,-

—--

Tenders will be accepted.without'cash deposit from incorpor­
ated hanks and trust companies and from responsible and recognized
dealers in investment securities.

Tenders from%others must be accom­

panied by a deposit of 10 per cent of the face amount of Treasury bill^

TREASURY

DEPARTMENT

FOR RELEASE, MORNING PAPERS,
Friday, October 14, 1938«

The Secretary of the Treasury gives'notice that tenders are invited
for Treasury hills to the amount of $100,000,000, 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 Federal Reserve Banks, or the branches thereof,
up to two o*clock p.m., Eastern Standard time, on Monday, October 17, 1938,
Tenders will not he received at the Treasury Department, Washington.
The Treasury hills will he dated October 19, 1938, and will mature on
January 18, 1939, 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 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 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.

2

Immediately after the closing hour for receipt of tenders on October
17, 1938, 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 final4’
.

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 October
19, 1938.
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.

(Attention is invited to

Treasury Decision 4550, ruling that Treasury bills are not exempt from the
gift tax*)

No loss from the sale or other disposition of the Treasury bills

shall bo 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.
*— oOO*-*-

TKEASUR D EPARTMENT
U. S. Coast Guard
o

For Friday a m ’s

First Class Seaman Rudo^lph Jones, United
States Coast Guard, will receive the Pershing Gold Medal
for individual honors in the 1938 National Rifle Màfcches
at 10 o ’clock this morning, it was announced today.

The

presentation will he made at Coast Guard Headquarters, 1512
H Street, by the Commandant, Rear Admiral R. R. Vfaesche.
First representative of the United States
Coast Guard to capture the award since it was established
by General Pershing at the Inter-Allied Gsmes in Paris
in 1919, Seaman Jones registered high among 1,250 contestants
at Camp Perry, Ohio, with a score of 287.

Following the

Paris games, General Pershing tendered similar trophies and
medals for team and individual champions in the National
Rifle Matches.
Secretary of the Treasury Morgenthau has
transmitted a letter of commendation to Seaman Jones and,
acting for General Pershing, Assistant Secretary of War
Johnson has similarly commended him for his marksmanship
in this year’s competition.
Seaman Jones was born October 5, 1910, in
Camden county, North Carolina.

He enlisted in the Coast

Guard on August 14, 1929, and has served aboard various
vessels in the Service.

He is now attached to the Coast

Guard Depot at Curtis Bay, Maryland.
oooOooo

TREASURY DEPARTMENT
U. S. Ocast Guard
Washington
EOR RELEASE, MORNING NEWSPAPERS,
Friday, October 14, 1938, ___
10/13/38.

Press Service
No. 14-94

First Class Seaman Rudolph Jones, United States Coast Guard, will
reçoive the Pershing Gold Medal for individual honors in the 1938 National
Rifle Matches at 10 c^lock this morning, it was announced today. The pre­
sentation will he made at Coast Guard Headquarters, 1512 H Street, by the
Commandant, Roar Admiral R. R. Waosche.
First representative of the United States Coast Guard to capture the
award since it was established by General Pershing at the Inter-Allied Games
in Paris in 1919, Seaman Jones registered high among 1,250 contostants at
Carp Perrjr, Ohio, with a score of 287»

Following the Paris games, General

Pershing tendered similar trophies and medals for team and individual cham­
pions in the National Rifle Matches.
Secretary of the Treasury Morgenthau has transmitted a letter of com­
mendation to Seaman Jones and, acting for General Pershing, Assistant
Secretary of War Johnson has similarly commended him for his marksmanship
in this year!s competition.
Seaman Jones was born October 5, 1910, in Camden County, North Carolina.
He enlisted in the Coast Guard on August 14, 1929, and has served aboard
various vessels in the Service.

Ho is now attended to the Coast Guard Depot

at Curtis Bay, Maryland.
— oOo—

(five)-Sensing the need
blood testç“"
1

&Q

which

for

reliable

become positive

'Ur

within two or

¡1

oL

primary
the

“serologic

Q ~ 1 l Q ^ ìJ Ì l

syphilis,

American Society of Clinical Pathologists sought

cooperation of the Public Health Service.
on ¿valuation
of Sérodiagnostic
¿vali

A committee

tests for syphilis,
syphilologists, two

consisting of two

clinical pathologists, and officers of the Public
Ç P c u i/u r ^

Health Service, was appointed by

Surgeon General to

it*

consider the
— TESTS
o a point

where material gains

a thorough

have

were though^probabla

sion in which^Tl those interested

n the control of ^j^philis through^mtoratory methods
ight participate. jfWiiihflr
(more)

-o

Is discussion will be conducted

from the stand-J

point of the private laboratory director by Dr. Frederick
H. Lambj^of Davenport, Iowa.

The

ealth

will be presented by D r # A. Wadsworth,
of

fficer* s

State department

Health, Albany, N.Y.
A separate committee will

draft

recommendatic

for each of the four sections for presentation to the
assembly.
be

Doctors

The chairmen

of the committees will

Walter M. Simpson^of Dayton, 0.;

Arthur

H. Sanford/ of Rochester, Minn.; F.E. Senear, of Chicago,
111.;

and H.pl Hazen, professor

of Dermatology and

Syphilology^ of Howard University, Washington, D.C.
The Hot Spring conference
from

representations of

Public Health Service
value

various

calling

of the discussions.

resulted
groups to the

attention to the
(more) -o-

(three)—

Discussion

of the need for training

of laboratory personnel. The qualifications and
for

training

both laboratory directors and technicians will be

presented In separate papers.
(3)*6**j*
performance of

Prosecution of studies to evaluate the

serologic
«

tests within the

states

O'V/UÜU,

the question for consideration being whether this
should be made the

XT£SlPcr-YvS)fct

§*¡¿3***, of the

municipal department of health.
_/

A

studies

In

state or

_______

Actual experience

with

the States of Maryland and New Jersey

and in the City of Cleveland will be

|i|fSiP rtüfe<k-

described.

>

(4)--- <c^rie desirability of licensing or
approving the performance of sérodiagnostic tests for
syphilis

respective

laboratories within the

states by the

state departments of health-will bo oonoldorod^
it(more)-o*

(two)-The

aim

of the assembly

will be consideration of
and to make
tests

more

methods

to improve

generally available the serologic

regarded by the

in syphilis control

Public Health Service as essential

work.

Tentative

arrangements

call for the presentation of the program in
sections

four

as follows:
(l)d^Consideration

to conventional technic

of the need for adherence

in the routine performance of

reliable

serodiagjfjiflstic tests. .Papers will be

presented

by

Doctors Harry Eagle, William A. Hinton,

Reuben Kahn, Benjamin

Kline

and John H. Kolmer. Later

■

f

in

secial sessions

an actual

each of the specialists will conduct

demonstration of the

originated.
(more) -o-

test procedure he

(

-- -N /— ^TREASURY DEPARTMENT
^nlte§l Etafete Public Health
Service
v ---— Washington.

t r
p3^

OUfULO

Important

developmeiiis

treatment of
^rAp

:\

iivnììiiNM^ai^ the diagnosis

svDlinisg ' k LmftTrrm TlhMTFti

. '
.

.

hr
will be out line cUat the «Ass&nb 1

ctors

^awswagBgaBajg^ ^

and

^ P ^ h S 8 National

Park, Ark., .Surgeon General Thomas Parran

announced

today.
Some of the leading
subject
campaign
with

national authorities on the

will gather for the purpose of intensifying the
of the United States Public Health Service,

the cooperation of j j w u t e a j ^ L o a s n s u u 101 trsiim»i
Public and private lir-tnrfti

(more)-o-

TREASURE-DEPARTMENT
U. S. Public Health Service
Washington

POR RELEASE, MORNING- NEWSPAPERS,
Sunday, October 16, 1938.
10-14-38
' ' ~

Press Service
No. 14-95

Important developments in the diagnosis, treatment and control of
syphilis will be outlined Friday and Saturday at the Assembly of Laboratory
Directors and Serologists, at Hot Springs National Park, Arkansas, Surgeon
G-eneral Thomas Par ran announced today*
Some of the leading national authorities on the subject will gather
for the purpose of intensifying the campaign of the United States Public
Health Service, with the cooperation of public and private physicians*

Dr*

Parran will act as chairman*
The aim

of the assembly will be consideration of methods to improve

and to make more generally available the serologic tests regarded by the
Public Health Service as essential in syphilis control work*

Tentative

arrangements call for the presentation of the program in four sections as
follows:
(1) Consideration of the need for adherence to conventional technic
in the routine performance of reliable sorodiagnostic tests.

Papers will

be presented by Doctors Harry Eagle, William A. Hinton, Reuben Kahn, Benjamin
Kline and John H. Kolmer.

Later in special sessions each of the specialists

will conduct an actual demonstration of the test procedure he originated*
(2) Di scussion of the need for training of laboratory personnel*
The qualifications and training for both laboratory directors and technicians
will be presented in separate papers*
(3) Prosecution of studies to evaluate the performance of serologic
tests within the States, the question for consideration being whether this
should be made the responsibility of the State or municipal departments of

- 2 ~

health*

Actual experience with these studies in the'States of Maryland and

New Jersey and in the City of Cleveland' will he described.
(4)

Consideration of the desirability of licensing or approving the

performance of sérodiagnostic tests for syphilis laboratories within the
States by the respective State departments of health.

This discussion will

be conducted from the standpoint of the private laboratory director by Dr.
Frederick H. Lamb of Davenport, Iowa.

The health cfficer*s view will bo

presented by Dr. A. Wadsworth, State Department of Health, Albany, N. I.
A separate committee will draft recommendations for each of the four
sections for presentation to the assembly*

The chairmen of the committees

will be Doctors Walter M. Simpson of Dayton, Ohio; Arthur H. Sanford of
Rochester, Minnesota; F. E. Senear of Chicago, Illinois; and H. H. Hazen,
Professor of Dermatology and Syphilology, of Howard University, Washington, D.C.
The Hot Springs conference resulted from representations of various
groups to the Public Health Service, calling attention to the potential value
of the discussions.
Sensing the need for reliable ^serologic blood tests,11 which become
positive within two or three ?/eeks a,fter the onset of primary syphilis* and
remain so in the majority of untreated patients throughout the course of
the disease, the American Society of Clinical Pathologists
of the Public Health Service*

sought cooperation

A committee on evaluation of sérodiagnostic

tests for syphilis, consisting of two syphilologists, two clinical pathologists,
and officers of the Public Health Service, was appointed by Surgeon General
Parran to consider the problem.
— 0 O0—

For release to morning newspapers of Monday, Oct. 17.

Secretary Morgenthau today announced the creation of the Section of
Fine Arts in the Procurement Division of the Treasury Department as a permanent
activity of the Government. The new Section succeeds to the work of the
Section of Painting and Sculpture of the Procurement Division, which is charged
with responsibility for the act decoration of all Federal buildings.
The renaming of the Section and the announcement of its permanent&£

mmmmsmrn come on the fourth anniversary of the creation of the Section
of Painting# and Sculpture by order of the Director of Procurement, approved by
the Secretary of the Tpea^suiyT ^
The order.^enaming and establishing the new status of the Section fo llow s:

II ®
Ua

i

TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING- NEWSPAPERS,
Monday, October 17, 1938.
10-14-38
' ' “

Press Service
Uo. 14-96

Secretary Morgenthau today announced the creation of the Section of
Fine Arts in the Procurement Division of the Treasury Department as a permanent
activity of the Government.

The new Section succeeds to the work of the Section

of Painting and Sculpture of the Procurement Division, which is charged with
responsibility for the art decoration of all Federal buildings.
The renaming of the Section and the announcement of its permanency come
on the fourth anniversary of the creation of the Section of Painting and Sculp­
ture by order of the Director of Procurement, approved by the Secretary of the
Treasury.

The action is evidence of the belief of both the Secretary and the

Director that the work pursued and the methods employed by the Section have
made so substantial a contribution to the development of native art that they
constitute a sound basis for permanent governmental activity in this field*
The order renaming and establishing the new status of the Section
follows:

-

2

-

TREASURY DEPARTMENT
Procurement Division

October 13, 1938*

ORDER

On October 16, 1934, an Order was approved and i ssued setting up a
"Painting and Sculpture Section" in the Procurement Division. The general
objectives of the Order were-defined as follows: •
(l)

To secure suitable art of the best quality available for the
embellishment of public buildings.

(2)

To carry out this work in such a way as Will assist in stimu­
lating, as far as practicable, development of art in this
country and reward what is regarded as the outstanding talent
which develops.

(3)

So far as consistent with a high standard of art, to employ
local talent.

(4)

To endeavor to secure the cooperation of people throughout the

‘ country interested in the arts and whose judgment in connection
with art has the respect of the Section in selecting artists
for the work to be done and criticism and advice as to their
production.
(5)

In carrying out this work, to make every effort to afford an
opportunity to all artists on the sole test of their qualifi­
cations as artists and, accordingly, to encourage competitions
whomever practicable recognizing the fact, however, that
certain artists in the country, because of their recognized
talent, are entitled to receive work without competition.

Attached hereto is a summary in figures of the work of the Section of
Painting and Sculpture during the past four years* The figures, however, while
they furnish an idea of the amount of work done and the number of artists
benefited by the Section of Painting and Sculpture, only remotely indicate
the importance of the work.
The general objectives of the Order of October 16, 1934, have been
realized beyond our most optimistic expectations. A series of mural paintings
and of sculptures in the round and in relief have been installed in Federal
buildings in more than three hundred different communities. The average
quality of this work is high, the cost low. (l$ of the building).
Setting out to stimulate the development of art in this country and to
reward outstanding talent on the basis of quality alone, the results achieved

3

are remarkable, Painters and sculptors of established position have out-done
themselves in this work and many distinguished talents hitherto unknown to the
public have been brought out b y our system of anonymous competitions.
It was our purpose as stated ”to secure the cooperation of people
throughout tho country interested in the arts.11 Looking back over the accom­
pli shments of the Section of Painting and Sculpture we are able to say that
in the hundreds of communities in which our work is set up we have received
wise and enthusiastic cooperation.
To the principle that the decoration of Federal buildings should be
given to artists ”on the sole test of their qualifications as artists” wo
have held strictly and successfully.
Therefore, in consideration of the verdict cf the leading authorities
in painting and sculpture that the objectives stated in the original Order
establishing the Section cf Painting and Sculpture have been attained and
that the work accomplished in the past four years has proved to be a great
material and spiritual enrichment to this country, the name ”Section of
Painting and Sculpture” is hereby changed to the name ”Section of Pine Arts.”
.The Section of Pine Arts shall be a permanent Section of the Treasury
Department and will continue and further extend the activities of its pre­
decessor the Section of Painting and Sculpture.
(Signed) C. J. PEOPLES
Director of Procurement.
Approved: Oct. 13, 1938
(Signed) H. MORGENTKAU, JR.
Secretary of the Treasury.

- 4

SUMMARY OF WORK OF SECTION OF PAINTING -AND 'SCULPTURE
OCTOBER 16, 1934 , to OCTOBER 12, 1938

Number of competitions Being
conducted at the present tine

17

Number of competitions held

:79

Number of artists conpetirg

4,824

Number of sketches submitted

10,334

Number of issues of Bulletin

17

Number of artists contracts
completed

375

Amount expended

Number of artists under
contract

192

Amount obligated

364,135.00

Number of artists designing

134

Amount obligated

185,980.00

— 0O0—

$537,154.93

ments and those who meet at least certain minimum requirements*

All ice

cream manufacturers will he required to hold permits, which will be revoked
if they fail to satisfy at least the minimum requirements*
The difference between the Grade A requirements and the minimum
requirements is primarily that the latter limit themselves largely to the
processing and freezing plants; whereas the Grade A requirements cover not
only the processing plants but also the dairy farms from which these plants
secure their ingredients*

The new code will prescribe a minimum period of

time during which all manufacturers will have an opportunity to prepare for
the grading announcement, and before which no manufacturer will be permitted
to advertise his grade, or "jump the gun"*

This will be done in order to

give all manufacturers, large and small alike, a fair time in which to
comply with the requirements*
The Advisory Board also reviewed the sanitary code on fresh fluid
milk which the Public Health Service has been recommending since 1923 > and
which has during the intervening years been adopted by more than 800
American communities*

Among the revisions recommended by the Board were

additional safeguards for the control of automatic pasteurization, which
has recently been coming into wide use, and a requirement that all Grade A
pasteurized milk must hereafter be covered with hood caps,— that is, the
caps must cover the pouring lip of the bottle and thus remove the chance of
contamination by the fingers of the milk drivers or the tongues of cats and
dogs*

The Advisory Board also recommended that after a reasonable period

of preparation, all Grade A raw milk be required to be produced from abortion
tested herds so as to reduce the menace of undulant fever*
-a- * #

DBs mg— I O / I 3 / 3 8 .

I

TREASURY DEPARTMENT
U. S. Public Health Service
Washington

Decisions reached at th

I fr Q 7

annual meeting of the Milk Sanitation

Advisory Board to the United States Public Health Service were reported to
the Surgeon General today by Leslie C. Frank, Senior Sanitary Engineer,
secretary of the Board.

The Board, composed

Surgeon General and representing State health departments, the milk industry,
the United States Department of Agriculture, and the United States Public
Health Service, meets each year to consider proposed amendments to the
United States Public Health Standard Milk Ordinance*

for paper
During the coming year the latest developments in the waterproofing of paper
bottles will be studied and recommendations will be made to the Board when
it meets in 1939*
”In the meantime,” said Mr. Frank, ”the Public Health Service
will continue to advise local health authorities that each city will be
justified in maintaining its status quo relative to the approval or dis­
approval of the use of paper milk bottles.”
Another important problem debated last week by the Board was an
advisory sanitary code for ice cream and other frozen products.

Such a code

was finally approved by the Board after three(day*s)study of a tentative
draft which had previously been prepared by the Public Health Service.

The

new code suggested for local adoption provides that all ice cream manu­
facturers are to be divided into two classes: those who meet Grade A require-

TREASURY DEPARTMENT
U. S. Public Health Service
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Monday, October 17, 1938.
10-15— 38

Press Service
Ho. 14-97

Decisions reached at the seventh annual meeting of the Milk Sanitation
Advisory Board to the United States Ptiblic Health Service were reported to the
Surgeon General today by Leslie C. Frank, Senior Sanitary Engineer, and secre­
tary of the Board*

The Board, composed of sixteen members appointed by the

Surgeon General and representing State health departments, the milk industry,
the United States Department of Agriculture, and the United States Public Health
Service, meets each year to consider proposed amendments to the United States
Public Health Standard Milk Ordinance.
The Board considered proposals for setting up standards for paper milk
bottles and decided to survey the problem at its next meeting.

During the

coming year the latest developments in the waterproofing of paper bottles will
be studied and recommendations will be made to the Board when it meets in 1939«
,fIn the meantime,11 said Mr. Frank, ttthe Public Health Service will con­
tinue to advise local health authorities that each city will be justified in
maintaining its status quo relative to the approval or disapproval of the use
of paper milk bottles*H
Another important problem debated last week by the Board was an advisory
sanitary code for ice cream and other frozen products«

Such a code was finally

approved by the Board after three days* study of a tentative draft which had
previously been prepared by the Public Health Service.

The new code srggestod

for local adoption provides that all ice cream manufacturers are to be divided
into two classes;

those who meet Grade A requirements and those who meet at

lea-st certain minimum requirements*

A H ice cream manufacturers will bo re­

quired to hold permits, which will be revoked if they fail to satisfy at least
the minimum requirements*

- 2 -

The difference between the Grade A requirements and the minimum roquirements is primarily that the latter limit themselves largely to the pro­
cessing and freezing plants; whereas the Grade A requirements cover not only
the processing plants but also the dairy fains frorr which these plants secure
their ingredients.

The new code will prescribe a minimum period of time during

which all manufacturers will have an opportunity to prepare for the grading
announcement,.and before which no manufacturer will be permitted to advertise
his grade, or Hjurp the gun.n

This will be done in order to give all manu­

facturers, large and small alike, a fair time in which to comply with the
requirement s»_
The Advisory Board also reviewed the sanitc?ry code on fresh fluid milk
which the Public Health Service has been recommending since 1923, and which
has during the intervening years been adopted by more than 800 American com­
munities»

Among the revisions recommended by the Board were additional safe­

guards for the control of automatic pasteurization, which has recently been
coming into wide use, and a requirement that all Grade A pasteurized milk
must hereafter be covered with hood caps, —

that is, the caps must cover the

pouring lip of the bottle and thus remove the chance of contamination by the
fingers of the milk drivers or the tongues of cats and dogs.

The Advisory

Board also recommended that after a reasonable period of preparation, all
Grade A raw milk be required to be produced from abortion tested herds so as
to reduce the menace of undulant fever.
— cOo—

T R E A S U R Y D EP A R T M EN T
O F F IC E O F T H E S E C R E T A R Y

WASHINGTON

C O M M IS S IO N E R O F
A C C O U N T S AN D D E P O S IT S

October 7» 1938

TO MR. GASTON:

During the month of September, 1938» the
following market transactions took place in Government
securities!
Total sales ....••••••••••• $
Total purchases ...........
Net purchases

None

38*^81,000
$3 8 »**81,000

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE,
*
Saturday, October 15, 1938,

Press Service
No. 14-98

Market transactions in Government securities for Treasury invest'
nent accounts in September,, 1938, resulted in net purchases of
$38,481,000, Secretary Morgenthau announced today.

— oOo—

IMPORTS OP DISTILLED LIQUORS AND WIRES' AND DUTIES COLLECTED THEBEON - JULY 1939
July1939
DISTILLED LIQUORS (Proof Gallons):
Stock in Customs Bonded Ware­
houses at b canning
Total Imports (Pree and Dutiable)
Available for Consumption
Entered into Consumption (a)
Stock in Customs Bonded Ware­
houses at end
STILL WINES (Liquid Gallons):
Stock in Customs Bonded Warehouses at Beginning
Total Imports (Pree and Dutiable)
Available for Consumption
Entered into Consumption (a)

June
1939

July1938

7 Mos. (Jan* -July)
1938
1939

4,137,878
759,413
4,897,291
630,102

4,122,943
789,195
4,912,138
769,396

3,493,666
724,066
4,217,732
742,291

4,214,134
5,287,500
9,501,634
5,180,395

3,709,510
5,727,069
9,436,579
5,924,165

4,265,314

4,137,878

3,466,515

4,265,314

3,466,515

1,151,292
237,157
1,388,449
153,116

1,101,341
256,275
1,357,616
206,282

1,320,709
133,443
1,454,152
148,283

1,121,505
1,747,322
2,868,827
1,629,207

1,430,547
1,297,613
2,728,160
1,412,169

Stock in Customs Bonded Warehouses at end
1,235,118
1,151,292
1,305,866
1,235,118
1,305,866
SPARKLING WINES (Liquid Gallons):
Stock in Customs Bonded Ware­
houses at beginning
321,014
306,297
271,133
294,136
257,942
Total Imports (Pree and Dutiable)
31,512
255,417
50,320
172,125
17,443
Available for Consumption
352,526
356,617
311,579
513,359
443,258
Entered into Consumption (a)
20,249
148,401
35,555
180,701
18,153
Yliipftnli ediwSaeadSwateiiMi ■
48
Stock in Customs Bonded Warehouses at end____________________________ 332,253_____ 321,014_____ 293,426______ 332,253______ 293,426
DUTIES COLLECTED ON:
Distilled Liquors
$ 1,555,592
$1,906,846 $ 1,822,574 $ 12,839,457 $ 14,607,297
Still Wines
126,391
170,454
125,800
1,419,244
1,227,513
Sparkling Wines
60,381
105,966______ 53,814______ 540,303______437,892
Total Duties Collected on Liquor
$ 1,742,364
$2,183,266 $ 2,002,188 $ 14,799,004 $ 16,272,702

-Other*
.CaBaftdltlas,
»m w a i » rarcrogg- naixmiVTsm
(a)

;-C08m t e 5 ;^ '4,6Vg49,1', |
.,l,Tgg;,,84y ;'l,0 6

Including withdrawals for ship supplies and diplomatic use.

tygau ‘"ejMfostomg}1*

OFFICE OF THE COMMISSIONER OF CUSTOMS

Sta,

September 12, 1939.

TO MR. DUFFIELD

j
/

FROM THE ACTING COMMISSIONER OF CUSTOMS:

There is transmitted herewith a statement showing imports of
distilled liquors and wines, and duties collected thereon, covering
the month of July 1939, with comparative figures for the months of
July 1938 and June 1939, and the first seven months of the calendar
years 1938 and 1939, which may he suitable for press release.

/ y v . &■

Enclosure,

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, October 18, 1938.
10-17-38

-

Press Service
No. 14-99

Commissioner of Customs James H. Moyle today issued the following statement
showing imports of distilled liquors and wines, and duties collected thereon, cover­
ing the month of August, 1938, with comparative figures for the months of August,
1937 and July, 1938, and the first eight months of the calendar years 1937 and 1938:
August
1938

July
1938

August
1937

8 Mos. (jan.-Aug.)
1938
1937 .

DISTILLED LIQUORS
(Proof Gallons)
Stock in Customs •
Bonded Warehouses
at beginning .....
3,466,515
3,869,246
3,493,666
3,426,042
3,709,510
Total Imports (Free
and Dutiable) ....
6,357,551
9,699,017
724,066
630,482
1,024,942
Available for Con­
sumption
4,096,997
4,894,188
10,067,061 13,125,059
4,217,732
Entered into Con­
sumption (a.) .....
640,181
1,016,167
742,291
6,564,346
9,222,938
Stock in Customs
Bonded Warehouses
at end .........
3,466,515
3,814,869
3,456,732
3,870,882
3,456,732
STILL WINES
(Liquid Gallons)
Stock in Customs
Bonded Warehouses
at beginning ....
1,430,547
1,085,347
1,305,866
1,335,965
1,320,709
Total Imports (Free
and Dutiable) ....
161,726
2,173,055
246,874
1,459,339
133,443
Available for Con­
sumption ........
1,582,839
2,889,886
1,467,592
3,258,402
1,454,152
Entered into Con­
sumption (a)......
145,258
160,988
1,557,427
1,828,468
148,283
Stock in Customs
Bonded Warehouses
at end .........
1,319,640
1,305,866
1,421,838
1,425,304
1,319,640
SPARKLING WINES
(Liquid Gallons)
Stock in Customs
Bonded Warehouses
at beginning ....
137,455
293,426
294,136
217,490
271,133
Total Imports (Free
and Dutiable) ....
12,844
184,969
318,693
17,443
45,552
Available for Con­
sumption ........
311,579
456,148
306,270
456,102
263,042
Entered into Con­
sumption (a) ....
16,368
18,153
164,769
35,114
233,692
Stock in Customs
Bonded Warehouses
at e n d .......
293,426
227,871
222,066
289,902
289,902
DUTIES COLLECTED ON:
Distilled Liquors
$ 1,569,694 $ 1,822,574 $2,474,633 $16,177,464 $22,474,318
Still Wines
1,348,317
120,942
139,487
125,800
1,621,030
Sparkling 7/ines
48,915
689,979
53,814
105,054
486,807
Total Duties Col­
lected on Liquors
$ 1,739,551 $ 2,002,188 $2,719,174 $18,012,588 $24,785,327
(a) Including withdrawals for ship supplies and diplomatic use.
— oOo—


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102