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LIBRARY
POflM 5030
JUN 14 1972
TREASURY DEPARTMENT
Ip
TKBAstjHT im u m m t
iMidiitn
FOR SHUSASa, KOHHIHG SSVSPAPXBS.
Saturday, October IX, X9*H.
io/io/% .....
..
T im
Frees Service
Ho. p - % - 0
Secretary of tile Treasury announced last evening that the tender»
for $100,000,000, or thereabout», of 91 -day Treasury hills, to he dated
October 15* 19^1, and to mature January lb, 19^2, which were offered on
October 8, were opened at the Federal fieserve Banks on October 10.
The details of this issue are as follows;
Total applied for - $217 ,616,000
Total accepted
- 100,207,000
Range of accepted bids;
High
low
Average
Price
-
100.
99*999
99*999«
Equivalent rate approximately 0.00b peroent
*
•
»
0.001
■
{3 « percent of the asount bid for at the low price wae accepted)
•tel ^
TREASURY DEFA R M E N
Washington
Press Service
Noi 28--.0
FOR RELEASE, MORNING NEWSPAPERS,
Saturdayj October 11, 1941,
r\ 7a i
1
iwl
Che Secretary of the Treasury announced last evening that
Tri£■»
T1
Ui.X
.urs for $100,000,000, or thereabouts, of 91-day Treasur
bills, to be dat
October 15, 1941, and to mature January 14,
1942, which were offered on October 8, were opened at the
Federal Reserve Banks on October 10.
The details of this issue are as follows:
$217,616,000
30,207,0«
Total applied for
Total accepted
Range of accepted bids:
High
Low
Average
Price
- 100.
99.999 Equivalent rate approximately 0.004 percent
99:9998 '
"
”
"
0.001
(38 percent of the amount bid for at the low price was
accept ed)
- o 0 o -
3
gü
m
ÉÊ
"
p
- 't - f
«
PRESSi RELEASE
• 0cJ. //, /?<{)
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of 60,389,780 gallons of crude petroleum,
topped crude petroleum, and fuel oil the produce or manufacture of Colombia
and 511,546,912 gallons the produce or manufacture of the Kingdom of the
Netherlands (including its overseas territories) entered, or withdrawn from
1941,
warehouse, for consumption during the period January 1 to September 27,/inclusive.
The President’s proclamation of December 28, 1940, provided that during
the calendar year 1941 not more than 86,956,800 gallons the produce or manufac
ture of Colombia and not more than 578,806,200 gallons the produce or manufac
ture of the Kingdom of the Netherlands (including its overseas territories)
may be entered, or withdrawn from warehouse, for consumption at the reduced
rate of import tax of 1/4 cent per gallon provided for in the trade agreement
with Venezuela.
Such imports in 1941 in excess of these quotas will be duti
#*
able at the full rate of import tax of 1/2 cent per gallon*
In order to provide for the control of these quotas the collectors of
customs have been instructed that, effective October 13, 1941, entries and
withdrawals for consumption covering such commodities, the produce or manu
facture of Colombia and the Kingdom of the Netherlands (including its
overseas territories), may be accepted at the xeduced rate, provided the
merchandise is not released pending determination of its quota status.
If
release of the merchandise is desired before determination of the rate
applicable, importers will be required to deposit estimated duties at the full
rate.
Excessive duties deposited on such merchandise found to be within the
quotaswill be refunded.
(Prepared - Appeals and Protests (Quota Unit),
Bureau of Customs)
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Saturday, October 11, 1941.
Press Servie
No. 28-1
10/1T75I" --------- ---------
The
Bureau of Customs announced today that prelimin
ary reports from the collectors of customs show imports of
60,389,780 gallons of crude petroleum, topped crude petro
leum, and fuel oil the produce of manufacture of Colombia
and 511,546,912 gallons the produce or manufacture of the
Kingdom of the Netherlands (including its overseas terri
tories) entered, or Withdrawn from warehouse, for consump
tion during the period January 1 to September 27, 1941,
inclusive.
The President's proclamation of December 28, 1940,
provided that during the calendar year 1941 not more than
86,956,800 gallons the produce or manufacture of Colombia
and not more than 578,806,200 gallons the produce or manu
facture of the Kingdom of the Netherlands (including its
overseas territories) may be entered, or withdrawn from
warehouse, for consumption at the reduced rate of import
tax of 1/4 cent per gallon provided for in the trade agree
ment with Venezuela.
Such imports in 1941 in excess of
these quotas will be dutiable at the full rate of import
tax of 1/2 cent per gallon*
In order to provide for the control of these quotas
the collectors of customs have been instructed that,
effective October 13, 1941, entries and withdrawals, for
consumption covering such commodities, the produce or
manufacture of Colombia and the Kingdom of the Netherlands
(including its overseas territories), may be accepted at the
reduced rate, provided the merchandise is not released
pending determination of its quota status.
If release of
the merchandise is desired before determination of the
rate applicable, importers will be required to deposit
estimated duties at the full rate.
Excessive duties
deposited on such merchandise found to be within the quotas
will be refunded.
TREASURY DEPARTMENT
Washington
(The following statement by Assistant Secretary
of the Treasury John L. Sullivan is scheduled
to be broadcast to the California Radio Forum
through station F'MTR, -Los Angeles, at 9 p, m.,
Pacific Standard Time, Tuesday, actobeFTC'I'941
T Ï ls Tor release in morning ne wsp apers o F
We dn e sd ay,F) c to ber 15, 19411)
I
am very glad that Congressman Ford has invited me to take
part in this radio forum because it gives me another opportunity
to speak of the subject which has occupied most of my time and
thought at the Treasury, the subject of taxation in this
national emergency.
As the emergency has deepened I have been more and more
impressed with the willingness of Americans from coast to
coast to pay whatever taxes may be needed for the defense of
this country.
I feel very strongly that that willingness has
been underestimated.
We still see in our newspapers cartoons
of the poor taxpayer having his teeth pulled by an ogre
labeled "the tax collector," or having his hair cut by the
tax collector, or enduring all the painful miseries that the
cartoonists' imagination can conceive.
28-2
2
I
should like to suggest to you today that that is an
outmoded picture of the American taxpayer.
It is true
that our tax collections in the coming year will he the
largest in our history, hut it seems to me that there is much
more patriotism and much more understanding among our
presentday taxpayers than one would guess from seeing the,
cartoons alone.
We are paying these large taxes today, and shall con
tinue to pay them, for sound reasons.
We are paying them,
for one thing, to check the rising course of prices which
might otherwise threaten our American standard of. living.
Our national income has now risen hy 14 billion dollars in a
year.
Our people have more money to spend than ever before
and yet the things we can buy with that increased income are
fewer and fewer because of the demands of our defense program
These are the conditions that cause price inflation, and
these are conditions that justify setting aside every possibl
dollar in taxes and in savings so that prices can be kept
in check.
o9
As part of the fight against inflation -- a fight which
the Government is determined to win —
the Treasury embarked
last May on a program of selling Defense Savings Bonds and
Stamps to vast number's of individual
anti-inflationary method of borrowing,
Thi s is
4I mean by■ this that
if the Government had gone exclusively to the banks for it;
requirements it would only have drawn on idle funds and
would not have made a dent in this problem of drawing off
the excess purchasing power produced by our swiftly rising
national income.
By going to the people themselves, however, the Government*
Is enlisting current earnings for the work of national defense.
It is goi ng directly to the man or woman who is earning more
this year
than a year ago.
C/
It i s saying to the ind ividual
citizen, ’’Lend, instead of spend , your extra money; lend it
to us, and we shall pay you a good rate of interest for it.
In this way you will be helping to keep prices in check, voi;
will he providing yourself with security for a rainy day-,
and you will be taking your part, directly and effectively
in the defense of your country.”
The purchase of Defense Bonds and Stamps is, therefore,
an essential part of the service and the duty of Americans
in these times.
But let us never forget that we can prevent
inflation, and we can pay for our defense, only by a
combination of savings and taxes.
Let us never lose sight
O-tf
of the fact that there is no more effective weapon agaii1
1b
inflation than taxation, and that there is no weapon that
the American people will more willingly employ.
We Americans still like to pay as we go for as much of
our expenditure as possible.
The old New England virtue of
thrift -- and I speak with some feeling because I am a
New Englander from New Hampshire -- is more strongly a part
of our American Way of Life than we generally imagine.
Congress has decided very.wisely, in my opinion, that
we should shoulder a very large part of our defense burden
now rather than pass it on to our children.
The goal was
originally fixed at two-thirds of our expenses from, taxation
and one-third from borrowings
The defense program has
speeded up to such an extent that it may not be possible to
adhere strictly to that proportion.
Nevertheless, the effort
is being made, and I think that in future years the American
people of 1941 will receive credit for having paid such a
large part of the current expenditures of Government as
those expenditures were incurred.
But there is a still higher and nobler purpose behind
our tax program today, and it is one which should reconcile
our people to whatever sacrifices may be demanded of them
in the months and years ahead.
Our taxes, after all, are
paying for the weapons with which this country can remain
strong and free.
They are the largest single source of funds
for the guns and ships, the tanks and planes on which our
future and our children’s future depend.
It will do us no good to look at our vast wealth as
King Midas looked at his aold and assume that our wealth will
'oiland. were wealthy and their
the hi ghest in the world , 0vet
^u
did not tax themselves sufficiently for defense, and
theyV have now lost everything
t>
O -- their Drone?tv,
t' y their freedom, and in thousands of cases their very lives.
We must
6
profit from the example of those peoples who taxed them
selves too little and too late to pay for preparedness.
We must always remember, and I think we do remember, that
our taxes serve an essential purpose.
I
can do no better in concluding this talk than to
quote the words of Secretary Morgenthau to the Ways and Means
Committee of the House of Representatives last April. He
said: "The American people, I believe, have outgrown the old
idea that taxes were exactions forced upon them by their
Government.
We have come to understand, especially ir
recent years, that taxes are payments for services rendered.
We are now about to pay for the greatest service of all:
the safety and protection of our country.
How much does it
mean to the American taxpayer to have a navy guarding*
American shores?
How much does it mean to him to have an
adequate supply of airplanes and other weapons of national
defense?
How much is it worth to be a free man living* in
- 7 a free land?” The Secretary said then that the new taxes
were a small price to pay for those blessings.
They are
a stiff orice when measured in dollars alone.
They are a
small price when measured in terms of our strength, our
need, and our determination to keep and perpetuate the
freedoms that we enjoy.
OoO-
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, October 14, 1941*
Press Service
No. 28-3
P
PRESS RELEASE
Thft Bureau of Customs announced today preliminary figures for imports of com-
L
modities within the quota limitations provided for under the Philippine Independence
ll
Act, as amended by the act of August 7, 1939, from the beginning of the quota
periods to September 27, 1941, inclusive, as follows:
Products of
Philippine Islands
:
:
Established Quota
Period
:
Quantity
:Unit of :Imports as of
:Qnantity:Sept.27,1941
Coconut oil
Calendar year
425,600,000
Pound
305,770,068
Refined sugars
Calendar year
112,000,000}
Pound
86,394,564
Sugars other than refined
Calendar year
1,792,000,000)
Cordage
Period - May 1
to Dec. 31, 1941
w
4,000,000
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
4,275,000
Pound
1,428,018,599 1
*
[
2,478,905 \
Gross
572,853 1
Pound
Number
Pound
%
127,328,049
(Duty-free
quota filled)
1/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which
not more than 50,000 long tons may be refined sugars.
-oOo-
I
I
*
§
DEPARTMENT
Washington
TREASURY
Press Service
No, 28-3
FOR IMMEDIATE RELEASE,
Tuesday, October 14, 1941,
The Bureau of Customs announced today preliminary figures for
imports of commodities within the quota limitations provided for
under the Philippine Independence Act, as amended by the act of
August 7, 1939, from the beginning of the quota periods to
September 27, 1941, inclusive, as follows:
Products of
Philippine Islands
J
5
Established Quota
5 Unit of i Imports as of
Quant***-*
;fixant ity ! Sept. 27, 19^1
Period
Coconut oil
Calendar year
Refined sugars
Calendar year
Sugars other than refined
Cordage
425,600*000
112,000,000
Pound
>1 /
Calendar year 1 ,792,000,000) Pound
Period - May 1
to Dec, 31» ^94l
4,000,000
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Calendar year
^, 275.000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Pound
305,770.06s
86,394,564
1,1+28,018,599
Pound
2,1+78,905
Gross
572,S53
Number
Pound
127,328,049
(Duty-free
quota filled)
1/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which
~ not more than 50,000 long tons may he refined sugars.
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Wednesday, October 15, 1941.
Press Service
No. 28-4
(Revision of Press Service No. 28-3)
The Bureau of Customs announced today preliminary figures for imports of com
modities within the quota limitations provided for under the Philippine Independence
Act, as amended by the act of August 7, 1939, from the beginning of the quota
periods to September 27, !
1941, inclusive, as follows:
Products of
Philippine Islands
:
:*
Established Quota
Period
1
Quantity
:Unit of :Imports as of
:Quantity:Sept.27,1941
Coconut oil
Calendar year
425,600,000
Pound
305,770,068
Refined sugars
Calendar year
112,000,000)
Pound
86,394,564
Sugars other than refined
Calendar year
1,792,000,000)w Found
1,428,018,599
Cordage
Period - May 1
to Dec. 31, 1941
4,000,000
Pound
2,478,905 J
Gross
572,853 !
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
4,275,000
Number
Pound
a
127,328,049 [
3,357,094 S
y
The duty-free quota on Philippine sugars applies to 850,000 long tons, of which
not more than 50,000 long tons may be refined sugars*
2/ Press Service No. 28-3 showed this quota filled. Revised reports show imports
as of September 27, 1941, of 3,357,094.pounds*
-oOo-
I
modities within the quota limitations provided for under the Philippine Independence
Act, as amended toy the act of August 7, 1939, from the beginning of the quota
periods to September 27, 1941, inclusive, as follows:
,
Products of
Philippine Islands
:
•
Established Quota
Period
Quantity
|1
:Unit of ¡Imports as of ;
:Quantity :Sept.27.1941
Coconut oil
Calendar year
425,600,000
Pound
305,770,068
Refined sugars
Calendar year
112,000,000)
Pound
86,394,564
Sugars other than refined
Calendar year
1,793,000,000)
Found
1,428,018,599
Cordage
Period - May 1
to Dec. 31, 1941
4,000,000
Pound
2,478,905 i
Cross
572,853 1
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
4,275,000
Number
Pound
i
127,328,049 1
3,357,094 jj
1/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which
not more than 50,000 long tons may be refined sugars*
2/ Press Service No. 28-3 showed this quota filled. Revised reports show imports
as of September 27, 1941, of 3,357,094 pounds*
-oOo-
W4U
1
i
I
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, October 15! 1941.
Press Service
No. 28-4
(Revision of Press Service No. 28-3)
The Bureau of Customs announced today preliminary figures for
imports of commodities within the quota limitations provided for
under the Philippine Independence Act, as amended by the act of
August 7, 1939, from the beginning of the quota periods to
September 27, 1941, inclusive, as follows;
Products of
Philippine Islands
I
:
Established Quota
Period
;
Quant ity
;Unit of :Imports as of
:Quantity:Sept.27,1941
Coconut oil
Calendar year
425,600,000
Pound
305,770,06g
Refined sugars
Calendar year
112,000,000)
Pound
^6,394,564
Sugars other than refined
Calendar year
1,792,000,000)
Pound
i,i+2g,ois,599
Cordage
Period - May 1
to Dec. 31 , 19^1
4,000,000
Pound
2 ,47g ,905
Gross
572,853
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
¡+,275,000
1J
Number
Pound
127,328,049
3 .357.091+
2/
The duty-free quota on Philippine sugars applies to 850*000 long tons, of which
not more than 50,000 long tons may "be refined sugars.
2/ Press Service No. 28-3 showed this quota filled. Revised reports show imports
as of September 27, 19^1» of 3•35T*09U pounds.
0O 0-
treasury department
Washington
__ —
orr
Frese
POS IMMEDIATE RELKASE,
c
Serriee
Wednesday. October IS, 1941*
T)is Secretary of the Treasury todsy «aa«BW(i the subscription figures
and the basis of alletnsiit for tbs cash offering of 2-4/2 percent Treasury
Bonds of 1967-72.
Reporta recelrad t t m tèa F W a w l Baaara. Banka A m
aggregate fe0,u6,000,000.
that anbaorip-
All subscriptiona aara allottai J2^per-
cent! on a straight percentage basis* with adjustments, chore necessary,
to the $100 denomination.
About 92 poreent of tbs Treasury notes aaturing December 15, 1941,
sere exchanged for the new bonds.
Original delivery of the new issue, except in the case of registered
bonds, w i n be nado In tbs fona of interim certificates, title to uhieh
■411 pass by delivery, as in tbs seas of coupon tondo.
Definitivo coupon
bonds will probably bo available to replace the Interin certificates early
in January.
Details as to subscriptions end allotments will be announced eben
final reports are received fren tbs Federal Reserve Banks.
nTD
REASURI DEPARTMENT
X
Washington
FOR IMMEDIATE RELEASE,
Tuesday, October 15, 1941.
Press Service
No. 28-5.
TRe Secretary of the Treasury today announced the subscription
iigures and the basis of allotment for the cash offering of 2-1/2
percent Treasury Bonds of 1967-72.
Reports received from the Federal Reserve Banks show that
subscriptions aggregate $10,446,000,000.
All subscriptions were
allotted 12-1/2 percent, on a straight percentage basis, with
adjustments, where necessary, to the $100 denomination.
Abouc 92 percent of the Treasury notes maturing December 15,
1941, were exchanged for the new bonds.
Original delivery of the new issue, except in the case of
registered bonds, will be made in the form of interim certificates,
title to which will pass by delivery, as in the case of. coupon
bonds.
Definitive coupon bonds will probably be available to
replace the interim certificates early in January.
Details as to subscriptions and allotments will be announced
final reports are received from the Federal Reserve Banks.
-oOo-
Assets and liabilities of all active banks in the United States and possessions
Page 6
by classes, at tne close of
business June 29,. 19^-0 - Cont’d.
:
Total all : national
banks
banks
:
: All banks
other tnan
national
Banks otxier tnan national
State
: Mutua 1 :
:
(Commercial): savings : Private
Otner deposits (certified and casniers’
checks (including dividend cnecks),
letters of credit and travelers’ checks
' sold for cash, and amounts due to reserve
574,883
71.137.458
Eills payable, rediscounts, and other
26,969
liabilities for borrowed money......... .
Acceptances executed by or for accbunt of
117,220
reporting banks and outstanding* *.... .
Interest, discount, rent, and other income
collected but not earned,...........
81,195
Interest, taxes, and other expenses accrued
102,524
and unpaid.......................... .
Other liabilities (including securities bor407.1l6
rnwcrd fr riivi dend!s dftf*.larpd but not payable)
71,888.502
Total Ti abi 1 it ia
s
..........
CAPITAL ACCOUNTS
Capital stock:
Capital notes and debentures............
Preferred stock.........................
Common stock.......... .................
Surplus............................. .
Undivided profits.......... ..............
F.eserves and retirement account for preferred stock and capital notes and de
bentures
Total capital accounts................
Total liabilities and capital accounts
128,171
367,892
701,925
77.074,407
232,960 _
38,079,051
232,027
27.702.072
100
111
10,671,438
149.54i
3
318
2,910
24,099
23,732
5O ,b’41
66,979
98,162
—
111,376
39,779
39,373
363
^3
49,ill
52,243
45,411
7,283
149
189.564
77.408,679
217,552
38. 479 .863
197,70b
27,666,062
10,636,l4b
208,763
1 ,325,286
128,171
159,129
1,269,844
2,242,292
120,209
159,129
1,260,899
1,399,923
4oi ,566
2,595,730
3,1+92,259
1,172,771
1,249,961
468,203
362.704
8.725,127
80,213,629
227.628
7 ,476,44l
36,889,080
710,568
U S . 676
4.848,686
43,322,549
226,069
17,059-
8,417
3,187
7,962
867,964
308,674
111,472
1.29b,072
3,527,855..
31 ,193.917 11 ,952,21s
.
157,655...
8,945
14,351
32s
1.175
24,799—
182,414
fge 5
Assets and liabilities of all active banks in the United States and possessions, by classes , at the close
of business June 29» 1940 — Cont’d.
Total all
banks
Interest, commissions, rent, and other in
come earned or accrued but not collected.•
Other assets (including securities borrowed,
insurance and other expenses prepaid, and
cash items not in process of collection)..
Total assets..................... .
■uIArilnlTlhS
Demand deposits:
Deposits of individuals, partnerships, and
corporations................. . .........
Deposits of United States Government......
Deposits of States and political sub
divisions .................... ..........
Deposits of banks in the United States....
Deposits of banks in foreign countries....
Total demand deposits.............. .
Time deposits (including postal savings):
Deposits of individuals, partnerships, and
corporations:
Savings deposits............... .......
Certificates of deposit...............
Deposits accumulated for payment of
personal loans.......................
Christmas savings and similar accounts.
Open accounts.........................
Postal savings deposits..................
Deposits of States and political sub
divisions. ............................ .
Deposits of banks in the United States....
Deposits of banks in foreign countries....
Total time deposits.... ...............
: National : All banks : Banks other than national
State
- Mutual • Private
: other than ;
ï
banks
:
national : (commercial) *savings •
58.672
96,084
40,709
279,952
80.217.629 76.889,080
235,647
43,328.549
37.301
2.436
195,910
31,193,917_ 11,992,218 182.,414
15 .976.7a6
518,805
1^,005,195
13 ,912,859
288, tea
288,467
154,756
29,981,981
307,273
3,185,964 1 ,936,456
9 ,125.762 5,641,680
747.676
775.461
43,876,441 24,4i 7,407
1,249,508
3,484,082
471,789..
19,499,078
23,630,682
53*202
1 ,247,508
3,469,386
407.344
19,325.564
42,04l
2,529
1
241
89,807
463
1*537
i4,64o
24.44i
7,049 170.429
56
6,887
6 ,977.727
533.532
16 ,652,955
686,871
6,071,906
1,220,403
682,978
10,574,162
370
3*523
94,570
206,100
3b,6o4
72,792
57,966
127,308
57.683
74,242
422,333
283
52,259
430
2*797
192,424
209,998
3.031
7,744,485
644
l4l
165
10.628.289
14,279
674,697
76,082
527.633
303.959
8.006
26.7te .132
249,137
46,192
425,560
29,89O
334,400
93,720
210,239
4,979
193*233
7.071
2,353,079-. 18.787,053.
807
29,890
100
Assets and liabilities of all active banks in tne United States and possessions,
business June 29, 1940 - Cont’d.
(In thousands of dollars)
All banks
: Total all : National
:
otner than
banks
:
:
banks
:
national
Investments - ContTd.
Obligations of States and political sub
divisions ......... ...........
.......... $ u,230,472 $ 1,928,352
$ 2 ,302,120
Other bonds, notes, and debentures:
U.S.Government corporations and agencies,
not guaranteed by United States:
57,217
Federal Land banks........... .
134,974
77,757
168,341
9 1 ;468
Federal Intermediate Credit banks.......
76,873
Other G-overnment corporations and
165,653
93,l4l
72,5l>*
Otner domestic corporations:
484,534
Railroads............................ .
1 ,616,517
1,131,983
821,218
Public utilities............ ........ .
346',521
1,167,739
298,284
651,220
Industrials. ............... ........... .
352,936
83,546
--ill otner................................
153,733
237,279
l44,121
118,342
Foreign— public and private......... ......
2b2,4b3
Total otner bonds, notes, and
2.766,943
debentures............. ............ .
4.4o4,1 SS
1.648.246
Stocks of Federal Reserve banks and other
506,113
2l6,6ll
domestic corporations.*.......... .
722,724
6.181
Stocks of foreign corporations....... .
7.022
841
16 .169,634
Total investments..................... . 29,074,909 12,906,276
566,286
Currency and cpin.*................. .
582,303
1,148,589
Balances with other banks, including reserve
balances and cash items in process of
collection................................
1 1 ,240,467
24,535,2öS 13,294,801
Bank premises owned, furniture and fixtures..
1,239,300
642,049
597,251
Real estate owned ot^er than bank premises...
851,764
971,279
119,515
Investments and other assets indirectly repre
senting bank premises or other real estate..
90,082
155,474
65,392
Customers* liability on acceptances out
standing......................... .
100,432
08,093
>*2,339
Page 4
by classes, at the close of
-------1
: Banks otner than national
: State
: Mutual
:
:(Commercial): savings : Private
$
1 ,657,559
$
633,167 $
n,394
46,692
73,744
9,15>*
2,636
1,371
493
70,244
1,801
469
416,643
713 ,6814.
1,656
330,306
256,23g
115,496
488,605
39,830
2,307
37,670
89,130
5*4,790
367
201
1 ,39g , >*93
î. 348,170
9.280
332,230
167,221
6,0 08
—
2,216
6,662
___ Ì13L
76 ,47g
10.831,624
490,334
6, 261,332
74,328
10,291,610
517,022
279,l60
905,051
124,496
571,508
43,806
531
1,096
80,611
>9,469
2
50,330
—
1,624
7,763
Page 3
assets and.liabilities of all active "banks in the United States and possessions, by classes, at the close
of "business June 29, 1940.
(in tnousands of dollars)
Total all :
banks
:
:
:
Number of banks.............................
ASSETS
Loans and discounts (including rediscounts
and overdrafts):
Commercial and industrial loans...........
Agricultural loans..................... .
Open-market paper........................ .
Loans to brokers and dealers in securities.
Other loans for the purpose of purchasing
or carrying stocks, bonds, and other
securities...... ......................
Real estate loans:
On farm land.............. ................
On residential properties........ ........
On other properties..................... .
Loops to banks..-.-................... .
All other loans..-............. ..............
Overdrafts.*................................
Total loans and discounts........ .....
Investments:
U. S. Government direct obligations.......
Obligations guaranteed by U.S.Government...
Reconstruction Finance Corporation......
Home Owners ’ Loan Corporation........ .
Federal Farm Mortgage Corporation.......
Otner Government corporations and
agencies.............................. ,
Total U. S. Government obligations,
direct and guaranteed.... .............
1/ Includes trust companies and stock savings
15,017
$
National
banks
597,098
All banks
otner than
national
9,847
5,170
6 ,166,>4-00 $ 3,602,084
623,189
1,237,551
528,0S3
297,592
481,581
168,650
764,663
:
;
:
$
2,561+,316
614,362
230,491
: Banks other than national
: State
: Mutual : Private
:(Commercial): savings :
:
1/
:
57
9,239
551 .
$
2 ,544,936
613,660
■£
44l $
153
4,619
18,939
549
6,988
312,931
218,884
306,843
390,039
374,624
366,229
234,452
362,646
6 ,300,459
591,911
14
4.926,492
5,220
o53.
48,437
30
6,058
504
7,891
13,288
1,077,854
43,594
4,066,865
II.O65
22,557.670
1,282,457
435,91+3
18,735
2 ,070,524
...... .
5.,562
9,179.227
5,503
13,378.443
348,881
1,515,109
554,124
24,859
1,905,053
4,936
8,403,514
15,734,668
7,219,890
8,514,778
5 ,869,601
2,590,989
48,188
1,005,757
1,881,217
584,307
366,811
638,946
530,354
815,022
336,592
5^0,757
255,992
108,447
253,83 2
80,4l6
145
1 ,066,195
247,715
184
504,554
210,615
293,939
220.570
73.290
79
19,-710,503
hanks.
9 ,111,226
10,599,277
7,437,274
3.112,974
49.029
7 ,382,916
24,859
1 ,996,341
4,783,724
37,651
—
86,06g
477
1,626
136
—
433
Comparison of assets and liabilities of all banks - Continued
(In thousands of dollars)
June 29»
. 19*40
LIAbliilTlhS - Continued
U. S. Government and postal savings deposits................ $' $83,355
Deposits of States and political subdivisions...............
3»713»597
3.713.597
10,213,188
Deposits of banks..................................... .....
10,213,18$
93*4,889
Other deposits (certified and cashiers* checks, etc.).......
7 1 ,153 ,*45$
Total deposits.........................................
71»153*^5$
Bills payable, rediscounts and other liabilities for
26,969
borrowed money................................ .........
117,220
Acceptances executed by or for account of reporting banks...
National bank circulation..................................
102,58*4
Interest, taxes, and other expenses accrued and unpaid.... .
Interest, discount, rent, and other income collected but
81,155
not earned........... ..................................
*407, ll6
Other liabilities.......... ....................... ........
7 1 »,888
888,502
Total liabilities.... .................................. 71
,502
Capital
June 30,
.1939
Dec. 30,
,1939
$
909,72s
3,5i2,3Ug .
9 ,901,871+
128,171
3$7»$92
2,595,730
3 »*492,259
,*492,259
3
1,178,771
1 ,17 $,771
$
866,950
June 30,
1- 1933__ 1
$ 1,637>930
3 »7$*4,2*43
17603,576
68,566,0*43
8,2*42, *487
896.6*40
6^,576,69*4
3A6M85
|7q..6U2
“+i.^3 A 70
25,551
l*+9,8*40
26,72*4
1*43,807
88,102
96.710
51^,682
5 K ,187
7|0,1+35
,76,300
G zk.zbk
72.839
377,711
69,280,086
67.25«#
...
accounts
Capital notes and debentures...............................
Preferred stock............................. ...............
Common stock...... .........................................
Surplus..................... ................................
Undivided profits....................................... ..
Reserves and retirement account for preferred stock and
capital notes and debentures...........................
Total capital accounts........ ...... ...........*.....
Total liabilities, and capital accounts................
Page 2
1*41,7*48
381,195
2,602,581
3 ,*451,29*4
1 ,1 *47,5^9
970.80*4
962,80*4
8.729.127
8.299,171
$»329,127
80,213,629 . .■■77.i.57.5jl2(ï 7___
797,887)
65 »307 »112
'Ì
1
3/^/5|2>550
*+J,9*|8,62*4
/
A
150,*47*4
*420,658).— j S’.899.‘
>1
2,588,96*4)
3,551,706
/ 3.374321
6*4642*46
988,582
Jf
993,82*4
*468.180
8.29*4.208 1___ 7,389,188.
73.601.320 h i 91,293,912
l / Licensed banks; i.e., those operating on an unrestricted basis.
2/ Not called for separately prior to December 31» 193$» previously included with loans and investments.
3 / Revised to exclude acceptances of other banks and bills of exchange or drafts sold with endorsement, now reported
as contingent liabilities.
b / Includes amounts set aside for undeclared dividends on capital stock and for accrued interest on capital notes
and debentures which, since December 31» 193$» are included with "Reserves”«
TREASURY mFJ&Tmm
Comptroller of the Currency
Washington
FOR RLLLASL, MORRTl% »LWSPAERkS
Thursday, October 31« 1940_____
The Comptroller of the Currency "today released the following preliminary figures, showing the assets and liabilities
of all active banks in the United States and possessions on June 29, 1940, an^- comparisons of such figures with the
assets and liabilities of all active banks on December 30» 1939» June 30» 1939» and June 30, 1933*
(In thousands of dollars)
June 30,
June 30,
Dec. 30,
June 29»
19^0 \
1933
1939
1939
1
/
14,624
j
15,
i
46
15,017
15,096
Mumber of banks.............................................
—— k-------s
1
*-- _
ASSM'S
$ 8,914,452 $ 9\627,5^
$ 9 ,101,693
$ 9,257,868
Loans on real estate....................................... .
12 ,^760,2^4
13 ,273,007
13 ,299,802
12,601,827
Other loans, including overdrafts......... .................
21 ,516,279 ■ 22\387,p8
22,374,700
Total loans............................................
22.557.670
I
1
U. S. Government securities:
15 ,223,316)
15 .73+.66s
Direct obligations.................................... .
15.++5.858
-- 7 /I95
1 I#999
4,001,606
Guaranteed obligations...................................
3 .567.515)
3.975,835
3 ,902,702
3 ,dpi,466
+, 230,+72
4 ,00s ,397
Obligations of States and political subdivisions........... .
4 ,970,207
4,4o4,188
4,618,289
6.3P-. +7+
Other bonds, notes, and debentures.................... .....
718,724
722,028
Corporate stocks, including stock of Federal Reserve Banks...
721.+75
729.7+6
Total investments.......................................
Currency and coin...........................................
Balances with other banks, including reserve balances.......
Bank premises owned, furniture and fixtures.................
Real estate owned other than bank premises..................
Investments and other assets indirectly representing bank
premises or other real estate...................... .
Customers’ liability on acceptances outstanding......... ..
Interest, commissions, rent, and other income earned or ac
crued but not collected..................................
Other assets................................................
Total assets...........................................
LIArilLITImS
Deposits of individuals, partnerships, and corporations:
Demand.
Time...
29,07M09
28,795.625
28,385,76s
1,148,589
1,196,539
22,197,935
1,251,792
1 ,056,262
1,042,+08
^,556
19 ,58+,188
1 ,271,978
1 ,112,556
7 ,1092,229
1 /3^,831
1 2/
424,264
24,535,268
1 ,239.300
971.279
17.S0,663
j 63ÿ,646
100,432
160,087
130,960
167,851
12+.319
154,756
275,952
150,166
261,185
158,159) —
237.81+)
80,213,629
77 ,575,257
73,601,320
3/51,293,912
28,211,568
25,688,8^5
25.137,529
20 , 2 ^ 5 , 6 1 5
155»474
29,981,981
2 5 , 2 2 6 , ï+52
2 5 ,1+0 6 ,2 6 l
1/ 765,905
lb,ooi,S39
Page
6
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30. 19^-1 - Continued
(In thousands of dollars)
Total all
banks
Other deposits (certified and cashiers1
checks (including dividend checks), letters
of credit and travelers* checks sold for
cash, and amounts due to reserve agents
(transit account)),,,,.,..,,.... ........ .
$807,831
Total deposits............ ............ " 78,549,329
Bills payable, rediscounts, and other lia
bilities for borrowed money.... ...........
22,559
Acceptances executed by or for account of re
porting banks and outstanding........... .
106,591+
Interest, discount, rent, and other income
collected but not earned,...... ...........
101,181
Interest, taxes, and other expenses accrued
and unpaid................................
I I M 99
Other liabilities (including securities bor
rowed and dividends declared but not
payable)..................................
¥39,638
Total liabilities........ ............. ~ 79,304,200
CAPITAL ACCOUNTS
Capital stock:
Capital notes and debentures.............
113,311
Preferred stock..........................
331,087
Common stock.............................
2,610,607
Surplus........................... ..........
3,616,763
Undivided profits...........................
i ,247,o 4i
Reserves and retirement account for preferred
stock and capital notes and debentures....
605.710
Total capital accounts................. ~ 8,524,519
Total liabilities and capital accounts.. 87,828,719
* National
| banks
$*+55,178
I All banks
other than
* national
Banks other than national
State
: Mutual
: p . 7’""
(commercial): savings : riva e
37 ,351.303
. $354,653
41,198,026
$352,962
$301
30.397.00Ó 10.648.489
2,005
20,55U
20,21+8
59,379
47,215
¥),09l+
—
55,61+1+
45,537
45,134
337
66
56,215
58,681+
50,031
8,525
128
191,?*+8
37.716,494
, 817.690
4l,587.706
1?2,532
30,745.039
21,811
10,679,176
3,3l+7
163,1+91
7,i4l
..
113,311
106,170
184,441
1,338,942
1,336,090
498,376
146,646
1 ,271,665
2,280,673
748,665
146,646
1 ,264,755
1,396,448
240,292
3,598,141
365,1+18
¥,926,378
l+6,5ll+,Ogl+
41,314,635
436,706
ll+
872,796
311,622
$1,190
292
7,121
6,910
11,429
337
3,539.603
___ 125.372
1.516,931
l,l68
19.3^
3^,331+, 61+2
11,996,107
183,335
238,373
Page 5
Assets and liabilities of ^■11 & ctive banks in the United States and possessions,
by classes, at the close
of business June 30, 19I+I - Continued
(In thousands of dollars)
Total all
banks
Other assets (including securities borrowed,
insurance and other expenses prepaid, and
cash items not in process of collection)...
Total assets...................
LIABILITIES
Demand deposits:
Deposits of individuals, partnerships, and
corporations......
Deposits of United States Government..
Deposits of States and political sub
divisions........... .
Deposits of banks in the United States....
Deposits of banks in foreign countries.....
Total demand deposits..........
Time deposits:
Deposits of individuals, partnerships, and
corporations:
Savings deposits........
Certificates of deposit.......
Deposits accumulated for payment of
personal loans.......
Christmas savings and similar accounts..
Open accounts..........
Postal savings deposits.....
Deposits of States and political subdivi sions......
Deposits of banks in the United States..
Deposits of banks in foreign countries^.
National
banks
: All tanks :___Banks other than national
: other than :
state
: Mutual
TTZ — 7—
. national ;(cosmercial) I savings : ~
^
$53, 025
87,825,719 "~tq 3 3 7 535
J3JjK»3K7T
(-*•»_COSf
)£-o
$2.773
183,335
19,19^,051
>+98,900
16,377,>+77
231+, 623
16,278,852
9.893,403
769,805
50,602.983
2,200,817
6,151,71+5
337,6,33
28
c-o1y383
oj yI146
tO
1.433,907
3.741,658
>+32,172
o~3i *1t
c00
LcL,on r>,0
07 *yoo
Offs'f yoU
prffrv
7 ,152,681
733,523
J7. *0^*+» 7IÉo)-l4
1 ,174,919
1 OQ )l77
235,132
71
Q »v
n7£
(±y
(u
66,803
cric 7nc
311,919
7,301+
27,138,515
501+.332
55,138
91,237
238,925
>+2,037
328,362
96,91+1+
____ >.323
8,514,979
3.012
66
95.613
1.431,951
3,722,130
411,523
22,079,013
44l
52
1
1,515
19,^76
20,648
137,252
16,335,899
670,587
6,244,300
666,871
10,584, 220
442
7,379
3.274
74,339
143,895
480,151
24 ,766
73.S67
85,006
477,690
24,766
I+72
57,928
377
———
961
2,081+
176,943
175,937
214,607
1.981
214,975
..
1.981
18.623,536
234,557
—
167
196
201
7,965,025 T o . 644.416
ll+,095
810
Page *+
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30, 19*+1 - Continued
(In thousands of dollars)
:
: Total all
:
banks
Investments - Continued:
Other bonds, notes, and debentures:
U.S.Government corporations and agencies,
not guaranteed by United States:
Federal land banks.....................
Federal intermediate credit banks..... .
Other Government corporations and
agencies...........................
Other domestic corporations:
Railroads..............................
Public utilities.......................
Industrials............. ..............
All other..............................
Foreign— public and private..............
Total other bonds, notes, and de
bentures...........................
Stocks of Federal Reserve banks and other
domestic corporations....................
Stocks of foreign corporations.............
Total investments.......................
Currency and coin............................
Balances with other banks, including reserve
balances and cash items in process of col
lection....................................
Bank premises owned, furniture and fixtures...
Real estate owned other than bank premises....
Investments and other assets indirectly repre
senting bank premises or other real estate..
Customers’ liability on acceptances outstandin g
Interest, commissions, rent, and other income
earned or accrued but not collected........
: Rational
:
banks
Banks other than national
' All banks •
* other than : State
* Mutual
Private
: national :(commercial) 1 savings
$182,756
199,523
$100,98*+
110,866
$81,772
88,657
$73,261*
89,79s
$*+, 667
3,203
$3,891
190,793
111,872
78,921
76,972
1,373
576
1,508,727
1 ,061,51*3
1+1*9,558
306,258
31*1*,975
1 ,059,169
*+l8,*+95
295,592
277,939
102,10*+
639.613
957,735
l,06l
1,95S
667,369
20*+,031
227,373
68,556
97,122
*+,2*+2,115 -.1.590,191
697,086
6,9*+*+
32,729,732
1 ,*+08,306
207,211
1,19S
ÏÏ7951+T791*
709,1+58
755,285
322,391+
135, >+75
130,251
2,651,92!+
1,1*12,035
1,229,03*+
10,855
170,936
3
5 ,362,2*+l
620,896
76,281
5,9*+0
11 ,658,808
629,303
737,7S5
10,720,782
508,833
238,503
33^,353
96,568
l99,908
90,360
61,761*
1*9,977
82,6*+*+
*+0,383
157,961
61,1+69
96,1+92
592,897
82,921
312,999
...
5,71*3
12,392,397
13,812,200
1,868
59*+
251
92,58?
32,777
97,079
1*89,875
5,71*6
17.774,938
69s, gl+S
25,*+71,008
1 ,222,200
706
70,300
1,671
891,8*+7
H9,9*+2
*+98,30*+
*+6,179
69,072
39,070
13,595
27
6,313
55,006
*+1 ,25*+
232
528
97S
Page 3
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30» 191+1(In thousands of dollars)
Total all
banks
’
: Rational
:
banks
: All banks : Panks other than national
:
other than ! State
Mutual
:(commercial):
Private
national
savings
:
1/
+
l4,91S
5,136
9,782
9.178
$7,9i+l+,i+l8
1,211,61+0
63s ,006
615,0S6
$*+,69s , 523
$3 .21+5,695
590,807
$3,216,055
237,898
377,188
726,371
355,9S5
370,386
601,598
233,956
1 ,1+56,662
1+91,01+3
20,1*36
567,1+92
25,31+1
2,162,O 6O
l+,9l+S
9,606,651+
38
*+,957.967
5*+,33*+
7,030,957
2,969,887
35.1+1+7
81+6,825
131,373
1+89,396
257,980
31+2,351
205,819
51,852
5.785
1.632
173
*+,539
8,967,509
3,1+26,021+
1+7,576
1,61+1+, ill
536,21+1+
5,929
Humber of banks..............................
- --
550
5I+
ASSETS
Loans and discounts:
Commercial and industrial loans............
Agricultural loans.................. .......
Open-market paper..........................
Loans to brokers and dealers in securities..
Other loans for the purpose of purchasing
or carrying stocks, bonds, and other
securities...............................
Heal estate loans:
On farm land.............................
On residential properties................
On other properties......................
Loans to banks.............................
All other loans............................
Overdrafts.................................
Total loans and discounts...............
Investments:
U. S. Government direct obligations........
Obligations guaranteed by U. S. Government:.
Reconstruction Finance Corporation.......
Home Owners* Loan Corporation............
Federal Farm Mortgage Corporation........
Other Government corporations and agencies
Total U. S. Government obligations,
direct and guaranteed.................
Obligations of States and political subdivisions................................
620,833
361,117
276,691
7»93i,33l
1 ,100,376
1+5,777
l+,716,787
12,01+6
25,5*+3,l+38
2,*+39>i+76
6,55*+
10,922,463
367,61+2
6,1+7*+,669
609,333
25,31+1
2.277,311
5,>+92
ll+, 6201955
is,692,790
S,856,1+99
10,036,291
1 ,532,277
1 ,7^3,519
605,095
603,360
51+8,291+
1 ,01+6,672
279,Si+9
i+Ol+,63S
983,983
696,81+7
325,21+6
398,7^2
23,577,061
11,135,952
i+,206,526
2,020,2^2
1J Includes trust companies and stock savings banks.
12,1+1+1,109
2,186,281+
263,950
371,139
$1+02
II5
9,1+20
30
$29,1+38
532
3,521
361+,020
Ç
.Çrt(
00
5,699
15,051
1+10
590,160
1 «1
J7KO
J e->loi
1 ,671,306
1+,801,591
1+1,671
68,962
67,093
6,019
1,770
170
6,269
506
Comparison of assets and liabilities of all banks - Continued
(in thousands of dollars)
June 30 1
19Ul
Pec. 31 ,
191«)
Page 2
June 29»
19^0
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand.................................................. $35,571,528
$33.636,iU3
$29,981,981
Time....................................................
26,21+7,184
26,072,015
25,826,1+52
U. S. Government and postal savings deposits...............
800,326
¿05,1+1+9
883,355
Deposits of States and political subdivisions..............
>+,11+0.029
3.939.312
3,713.597
Deposits of banks..........................................
10,982,1+31
10,973.203
10,213,188
Other deposits (certified and cashiers’ checks, etc.)......
981,763__________ 534,885
807.831__________
Total deposits........................................
78,5^9,329
76,*+07,885
71,1537458
Bills payable, rediscounts, and other liabilities for
borrowed money..........................................
22,559
25,060
26,969
Acceptances executed by or for account of reporting banks...
106,594
120,773
117,220
Interest, discount, rent, and other income collected but
not earned........................... ...................
101,1817
r 81,155
Interest, taxes, and other expenses accrued and unpaid.....
114,899 > ------- 608,626 ------ 1 102,584
Other liabilities.... .....................................
409,6387____________ ____ __________
407,116
Total liabilities................ ..................... 79.304.200
77.162,344
71,888^502
CAPITAL ACCOUNTS
Capital notes and debentures..........................
Preferred stock.......................................
Common stock..........................................
Surplus...............................................
Undivided profits.....................................
Reserves and retirement account for preferred stock and
capital notes and debentures.......................
Total capital accounts...........................
Total liabilities and capital accounts...........
--- 9n4)T
113.311
331,087
2,610,607
3.616,763
1 ,2^7 ,0U 1
605,710
8,524,519
87,828,719
123,134
347.613
2,599.772
3.561,155
1 ,186,92**
590,960
8,409,558~
85,571.902
128,171
367.892
2,595,730
3 ,492,259
1 ,178,771
562,30U
... .. 8,325,127
80,213,629
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
POR RELEASE ,
*
'
r
13
'' -V -
Press Service
Z & '" b
mThe Comptroller of the Currency today released the following preliminary figures, showing the assets and
liabilities of all active hanks in the United States and possessions on June 30, 19^1, 3-nd comparisons of such
figures with the assets and liabilities of all active banks on December 31, 19Û0, and June 29,19*10.
(In thousands of dollars)
June 30,
19^1
Number of banks................................
l4,91S
31 ,
19U0
14,955
$9.633,305
iS-91Ó ,133
]\7Q!
C-J), n*2*4j$0
$9 .436,945
l1*.530 ,?31
23,907,476
$9,257,s6s
13.299.S02
22,557,670
l 6.7gg.s3U
4,239.964
^.339,983
4,4i 6,23S
7U3 ,555
30,528,574
1,407,364
26,846,418
1,223,737
15,73^,668
3,975,335
^, 230,472
4,404,188
729,746
29,074 909
1,148,589
24,535.26s
1 ,239.300
Dec*
June 29,
1940
—
.—■. 15,017
K » r*-l
ASSETS
Loans on real estate............................
Other loans, including overdrafts......................
Total loans..•.
U. S. Government securities:
Direct obligations.................
Guaranteed obligations.........................
Obligations of States and political subdivisions...........
Other bonds, notes, and debentures.......... ...........
Corporate stocks, including stock of federal Reserve banks..
Total investments............................
Currency and coin...........................
balances with other banks, including reserve balances......
Bank premises owned, furniture and fixtures........ ........
Real estate owned other than bank premises.................
Investments and other assets indirectly representing bank
premises or other real estate...............
Customers* liability on acceptances outstanding............
Interest, commissions, rent, and other income earned or
accrued but not collected..................
Other assets...............................
Total assets.................. ..............
18,892,790
U» 6SU , 271
4,206,526
4,242,115
704,030
32,729,732
— ..V—
1
■■■,.
1,402,306
25,471,008
1 ,222,200
33^,353
930,106
l44,40S
87,228.719
155.474
144,002
90,360
157,961 I
226,953 J
971.279
104,269
— —
419,906
«5.571.902
100,432
—
r
15^,756
L 275,952
80,213,629
*'■'•'—^ 5'*
:’,ä!_. %
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
POE ESLEA.SE, MORNING NEWSPAPERS
UaiùidajrOctober 10, 194l.
Press Service
28-6
*
The Comptroller ef the Currency today released the following preliminary figures, shewing the assets and liabilities
cf all active banks in the United States and possessions on June 30, 19^1* and comparisons of such figures with the assets
and liabilities of all active banks on December 31» 19^0» and June 29, 1940.
(In Thousands of dollars)
June 30,
1941
Number cf banks»............ ........ ......... ......
ASSETS
Leans on real estate«........... ...................... .
Other loans, including overdrafts.............................
Total loans............... ...... ......... ....... .
U. S. Government securities:
Direct obligations................................. .
Guaranteed obligations...........................
Obligations of States and political subdivisions..............
Other bonds, notes, and debentures....... .
Corporate stocks, including stock of Federal Reserve banks....
Total investments............. ........... .
Currency and coin.................... ............... ..... .
Balances with other banks, including reserve balances.........
Bank premises owned, furniture and fixtures...................
Real estate owned other than bank premises............... .....
Investment# and other assets indirectly representing bank
premises or other real estate*......*......................
©gsVomers* liability on acceptances outstanding...............
Interest, commissions, rent, and other income earned or
accrued but not collected,*................................
Other assets.................................. .......... .
Total assets.............................................
Doc. 31.
1940
June 29,.
194c
14.918
Ï4.955
.................... J 5 t £ l i
$9.633.305
15*910,133
25.543,438
$9,1+36,945
14,530,531
23,967,476
$9.257.868
13.299.802
22.557^670
18,892,790
4,684,271
4,206,526
4,242,115
704,030
32,729*732
1,408,306
25.471,008
1,222,200
834,353
16,788,834
4.239,964
4.339.983
4,416,238
743,555
30.523,574
1,407,364
26,846,418
1,223,787
930,106
15.734.668
3*975*835
4.230,472
4,404,188
729.746
29.074,909 . .
1,148.589
24.535.268
1.239.300
971.279
144,408
90,360
144,002
104,269
155.474
100,432
419,906
____ ( 154,756
( 275.952
8C.2i3.62a ...—.\
157.961 >____
226,955 )
87,828,719
85.571.902
Comparison of assets and liabilities of all banks - Continued
(In thousands of dollars)
------— ----------------- —
June 30»
'
I9I4I
Page 2
Dec. 31,
June 29,
19^0
1940
LIABILITIES
Deposits of individuals, partnerships, and corporations:
Demand.... .......... ......... ....... •*........ .
Time*...... .......... ................... ........ .
U. S. Government and postal savings deposits...............
Deposits of States and political subdivisions.......... .
Deposits of banks............................ ............ *
Other deposits (certified and cashiers’ checks, etc.)»•»»•»»
Total deposits.....»»••»»»•*••.»»••»•»«.•**•»»»»••»•
Bills payable, rediscounts, and other liabilities for
borrowed money.......... .......................... .
Acceptances executed by or for account of reporting banks..*.
Interest, discount, rent, and other income collected but
not earned......... ....... .................... .
Interest, taxes, and other expenses accrued and unpaid......
Other liabilities.......... ......... ............... .
Total l i a b i l i t i e s . . **»»••*»•*
CAPITAL ACCOUNTS
Capital notes and debentures........... ........... .
Preferred stock....... ..................... ..............
Common stock............... ......... ...... .......... .
Surplus......... .......... ..... .................. ......
Undivided profits....... .......... v ......................
Reserves and retirement account for preferred stock and
capital notes and debentures.................... .
Total capital accounts................................
Total liabilities and capital accounts................
$35,571,528
26,247,184
800,326
4,l40,029
10,982,^31
807.831
78.5*19.329
22,559
106,591+
101,181)
114,899;--1+09,638
79,304,200
113.311
331.O87
2,610,607
3,616,763
1,21+7,01+1
605,710
8.524,519
87.828,719
$33,636,143
26,072,015
805,1+1+9
3,939,312
10,973.203
_ 981,765
76,407,885
$29,981,981
25,826,^52
883,355
3*713*597
10,213,188
554.885
71.155,458
25*060
26,969
117,220
120,773
Cr\a £
( 81,155
__
77.162.544
)l+07,ll6
71,-888,502
123,134
347.613
367,892
2,599,772
3,561,155
1,186,921+
2,595.730
3.492,259
1.178,771
590.960
8,409.558
85.571,902
128,171
562,304
8.525.127
80,213,629
Page
Assets and liabilities of all active banks in the United States and possessions» by classes» at the close
of business June 30, I9U 1.
(in thousands of dollars)
; Total all
.
banks
Number of banks.
14,918
j National
.
banks
3
: All banks : Banks other than national
: ether than : State
: Mutual
: national : (commercial): savings
: Private
1/
5,136 _
9,782
..... 9.173
550
54
$3.245,895
590,807
$3,216,055
$402
638,008
615,086
620,833
361,117
237,898
726.371
601,59g
7.931.331
1 ,100,376
ASSETS
Loans and discounts:
Agricultural loans........................
Open-market paper............ ............
Loans to brokers and dealers in securities.
Other loans for the purpose of purchasing
or carrying stocks» bonds, and other
securities...........................
Peal&astat1*loans:
On farm land.........
$7,944,418
1,211,640
Loans to banks................ .
*+5.-777
All other loans......................
*+,716,787
Overdrafts.....................
12,046
Total loans and discounts............ .
-25.543,438
Investments:
U. S. Government direct obligations.......
18,892,790
Obligations guaranteed by U.oS. Government:
Reconstruction Finance Corporation.......
1,532.277
Home Owners’ Loan Corporation........
1 .743.519
Federal Farm Mortgage Corporation.......
605.095
Other Government corporations and agencies
803,380
Total U. S. Government obligations,
direct and guaranteed............. .
23,577,061
Obligations of States and political sub-»' *
divisions.........
4,206,526
Danks.
$4,698,523
377.188
590,160
263,950
371.139
9,420
30
$29.438
532
3.521
6,0x9
355.985
370,386
364,020
667
5.699
233.956
1 ,456,662
491,043
20,436
2.439,476
352,181
1 ,671,308
567,492
25.341
2,182,060
6,554
10,922,485
367.642
6,474,669
609.333
25.341
2,277,311
5.492
14,620,955
4,948
9,608,654
3$ -506
4,957,967 ----- '54.*J554
8.356,499
10,036,291
7.030,957
548,294
1,046,672
279.849
4o 4,638
983,983
696,847
489,396
325,246
398.742
257.980
342,351
11.135,952
12,441,109
8,967.509
3,426,024
47,576
2,020,242
2,186,284
1,644,111
536,244
5,929
276,891
,
846,825
115
15,051
4,801,591
41,671
4io
1,770
88,982
6,269
2.969,887
35.447
170
131.373
5,785
205,819
1,632
67,093
173
51,852 ---- 4,559
»
Page 1+
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30, 19^1 - Continued
(in thousands of dollars)
>
\
i
: Total all
:
banks
: National
:
banks
Banks other than national
All banks [
:
State
: Mutual
:
other than |
:
(commercial) : savings
: Private
national *
Investments - Continued:
Other bonds, notes, and debentures:
U.S.Government corporations and agencies,
not guaranteed by United States:
Federal land banks.....................
$182,756
$100,981+
$81.772
Federal intermediate credit banks.......
110,866
88,657
199,523
Other Government corporations and
agencies.............. ............. ..
111,872
190,793
78,921
Other domestic corporations:
Railroads..................
1 ,059,169
... 1 ,502,727
449,558
Public utilities...... ...........
306,258
... 1 .061,51+3
755.285
Industrials.......... ...........
667,369
322,394
344,975
All other................ .
68,556
20l+,031
135,475
Foreign— public and private...............
97.122
130.231
.... 227.373
Total other bonds, notes, and de
bentures. .....................
2.631.921+
.. 1+.2l+2.113
1.390.191
Stocks of Federal Reserve banks and other
domestic corporations............. .
207,211
..
697,086
489,875
Stocks of foreign corporations*....... .
6,5.44. ________ 1 .19g ___
Currency and coin............ ............
Balances with other banks, including reserve
balances and cash items in process of col
lée tion0*....... ........... ............. .
Bank premises owned, furniture and fixtures.*..
Real estate owned other than bank premises.*.•.
Investments and other assets indirectly repre
senting bank premises ©r other real estate...
Customers * liability on acceptances outstanding
Interest, commissions, rent, and other income
earned or accrued but not collected.........
$l+,667
3,203
76,972
1,373
418,495
295,592
277,939
102,101+
82.921
11,658,808
592,897
10 , 72 0, 782
508,833
*3^353
96,568
629,303
737,725
ii+i+,bos
157.961
61,1+69
231
5,940
13,812,200
1+9,977
i,95S
1,868
594
170,936
25,1+71,008
1 ,222,200
8 2 , 61+1+
1,061
312,999
6.747
709,^52
61,761+
576
10.833
12.5^ 397
90,360
32,777
47.079
706
1*229-. 031+
698,gl+8
i,Uog,3o6
639,613
457,735
42,587
$3, gl+1
1.1+12.033
17* 11b. 938
3a.-729xI32._-_
lb , 95.U. 79*+
$73,264
gl+,7l+2
620,896
238,503
3
5.362.21+1
76,281
70.300
891,81+7
1+6,179
528
119,91+2
1+92,301+
13,5^5
*+0,3*3
69,072
3^,070
96,1+92
55,006
1+1 ,251+
1,671
972
p27
6,313
232
Page 5
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30» 1941 - Continued
(in thousands of dollars)
Total all
„
banks
Other assets (including securities borrowed,
insurance and other expenses prepaid, and
cash items not in process of collection),..
Total assets..... .......... ......... .
$226,953
87,828,719
LIABILITIES
Demand deposits:
Deposits of individuals, partnerships, and
corporations................................. 35.571,528
Deposits of United States Government....,..*
733,523
Deposits of States and political sub
divisions..
..... .
,...............,
3,634,724
Deposits of banks in the United States....,
9.893.^3
Deposits of banks in foreign countries,... *.
769,805
Total demand deposits....
_ 1 0 , b02,983
Time deposits:
Deposits of individuals, partnerships, and
corporations:
Savings deposits...................... . 23,988,580
Certificates of deposit....,.... .
1,174,919
Deposits accumulated for payment of
personal loans...................... .
129,477
Christmas savings and similar accounts*..
235.I32
Open account s;....«......................
719,076
Postal savings deposits........ ........ .
66,803
Deposits of States and political sub
divisions. .......... ... ..... .
505,305
Deposits of banks in the United States....
3H ,9 1 9
Deposits of banks in foreign countries,.... ______ 7.304
Total time deposits*..... ........ ....
27,138,515
.
Uational
banks
All banks :
Banks other than national
other than:
State
: Mutual
: Private
national :(commercial) :savings
$34,726
$2,773
11 ,996,107 ... 183,335
$53,025
41,314,635
$173,928
46,514,084
19.19^.051
16.377.^77 16.27s .852
234,623
234,557
3,012
66
95.613
1,515
19,476
20,648
498,900
$136,429
34,334,642
2,200,817
6,151,745
337,633
1 .^33,907
3,741,658
432,172
1 ,431,951
3,722,130
411,523
44i
52
1
28,383,146
22,219,837
22,079,OÌ3
5,572
137,252
7.152.681
504,332
16,835,899
670,587
6,244,300 10,584,220
666,871
,442
7.379
3,274
55,138
91.237
238.925
42,037
7^.339
143,895
480,151
24,766
472
57.928
377
961
2,084
328.362
96,944
5,323
8,514,979
176,943
214,975
1,981
18,623,536
73.267
85,006
477.690
24*766
810
175,937
214,607
167
1,981
7,965,025 i o ,6 4 4 ,4 i 6
—
196
201
— —
14,095
Page 6
Assets and liabilities of all active banks in the United States and possessions, by classes, at the close
of business June 30, 194l - Continued
(In thousands of dollars)
banks
Other deposits (certified and cashiers’
checks (including dividend checks), letters
of credit and travelers’ checks sold for
cash, and amounts due to reserve agents
(transit account)).......... ..............
Total deposits......... „..
......... .
Bills payable, rediscounts, and other lia
bilities for borrowed money.... .
Acceptances executed by or for account of re
porting banks and outstanding........ .....
Interest, discount, rent, and other income
collected but not earned.......... .........
Interest, taxes, and other expenses accrued
and unpaid......... .
Other liabilities (including securities bor
rowed and dividends declared but not
payable)................................
Total liabilities.......................
CAPITAL ACCOUNTS
Capital stock:
Capital notes and debentures...............
Preferred stock....... .... .. .....
Common stock.... ....... .
Surplus...
., ,,a
##
Undivided profits.,............
Reserves and retirement account for preferred
stock and capital notes and debentures......
Total capital accounts.------------------~
1
»
banks
8493,178
$807,831
18,549,329 - 37>351,303
All banks
: other than :
State
: Mutual
: national :(commercial) : savings
. « 54,653
$352,962
41,198,026 _ 30,397,000
: Private
:
$501
10,648,489
$1,190
152,537
14
292
22,559
2,005
20,554
20,248
106,594
59.379
47,215
40,094
—
101,181
55,644
45.537
45,134
337
66
114,899
56,215
58,684
50,031
8.525
128
.... 409,638
79 *■304,200
191,948
37,716,494
217,690
41,587,706
192,532
30.745.039
10,679,176
113.311
331.087
2,610,607
3,616,763
l,247,o4i
113*311
l46,646
1 ,271,665
2,280,673
748,665
106,170
7,i 4i
184,441
1.338.942
1 ,336,090
498,376
146,646
1 ,264,755
1,396,44s
240,292
3,598.141
4,926,778
41,314,635
46,514,084
605,710
8.524,319
Total liabilities and capital accounts... 87,828,719
365,418
21 #.811
7,121
3.347
163,491
436,706
311,622
6,91©
11,429
337
238,878
.. 3,589.603
34,334,642
125,372
1,316,931
719,844
11 ,996.107
183,335
872.796
1,168
TREASURY DEPARTMENT
Washington
FOE IMMEDIATE RELEASE
Wednesday. October 15» 1941
Press Service
h *
i z - y
On October 2, 1941 the Treasury announced the
definite denial of an application by General Dyestuff Corporati
to purchase the controlling shares of General Aniline
& Film
Corporation from Internationals Gesellschaft für Chemische
Unternehmungen A.G. (I* G. Chemie), a company organized under
the laws of Switzerland.
General Dyestuff Corporation has since filed a
reapplication with the Treasury Department relating to this
transaction.
The Treasury today reaffirmed its decision and
denied the reapplication.
xiv£jK OU1XX
W ashin gton
FOR M E D I A T E RELEASE
Wednesday, October 15, 1941
Press Service
No, 23-7
On October 2, 1941 the Treasury announced the
definite denial of an application by General Dyestuff
Corporation to purchase the controlling shares of
General Aniline & Film Corporation from Internationals
Gesellschaft filr Chemische Unternehmungen A. G. (I. G.
Chemie), a company organized under the laws of Switzerland.
General Dyestuff Corporation has since filed a
reapplication with the Treasury Department relating to
this transaction.
The Treasury today reaffirmed its
decision and denied the reapplication.
My dear Senator:
Receipt is acknowledged of your letter of October
11, 1941, enclosing copies of corresnondence between
you and Mr. J. L. Behrens of Muscatine, Iowa, and
letter from Mr. Chesly Manly of the Chicago Tribune’s
Washington^Bureau to Mr. Behrens, concerning an
article written recently by Walter Trohan on the ex
penditure of Lend-Lease funds.
In reference to Mr. Manly’s statement that "Mr.
Trohan’s article was based upon actual vouchers,
invoices, requisitions, and other documents of the
procurement division of the Treasury", it is the
policy of the Treasury Department to treat all records
in connection with the Lend-Lease nrogram as confiden
tial and Mr. Mack, Director of Procurement, has in
formed me that neither he nor any official of the
Procurement Division has released or authorized the
release of any^such documents for any purpose except
to other agencies of the Government in connection with
official action. Of course copies of such records are
filed with^ other agencies of the Government, and with
the exception of requisitions made by foreign govern
ments, copies of all other documents referred to in
Mr. Manly’s letter are in the possession of the con
tractors from whom such purchases were made.
The Procurement Division has made purchases of the
articles described in Mr. Trohan’s article. These
purchases were made as a result of requisitions received
from foreign^governments involved, through the Division
of Defense Aid Reports which, as you know, is charged
with the administration of the Lend-Lease Act.
However, the statements ma.de by Mr. Troho.n are in
accurate in many respects, and in other' respects while
they are accurate, they convey a misleading picture
- n¿ because all of the facts in connection with the particular
purchase ^have not been stated. The following are examples
of such inaccuracies:
1*
1^Le purchases of alcohol were made in Phila
delphia, not in New Jersey and were in the
amount of 7,200,000 gallons: such alcohol
was not pure grain” and can not be used for
beverage purposes but will be used by the
British in the manufacture of munitions. The
fact that the type of alcohol purchased can
not be used for beverage purposes is a matter
of common knowledge.
2,
The phosphate referred to in the article as
being purchased for 63/ per 20 pound sack,
was actually what is known as triple super
phosphate and^was purchased for 63/ per 20 •
pounds of available po Or (phosphoric acid),
ihis material was in 100 pound bags, and
would cost approximately $30.00 per ton.
The 495,000 tons of phosphate rock purchased
witlq Lend-Lease'funds was so bought'at erices
ranging from $2.03 to $4.15 per ton.
3.
No asphalt has been purchased for Great
Britain, the asphalt referred to in the
article having been acquired for the Chinese
government.
4<.
The ^article creates the inference that short
hand notebooks were purchased at the price of
60/ apiece* The unit, the price of which v/as
60/, was a dozen shorthand notebooks.
°bher information in connection .with
this matuer which you desire, I will be glad to supply
the same upon your request.
Very truly yours,
(Signed) Ü. Morgenthau, Jr.
Secretary of the Treasury.
Honorable Clyde L. Herring,
United States Senate^
TREASURY DEPARTMENT
Washington
Press Service
No. 28-9
FOR IMMEDIATE RELEASE,
Thursday, October 16, 1941,
Market transactions in Government securities for Treasury
investment accounts in September, 1941, resulted in net sales
of 02,500, Secretary Morgenthau announced today.
-OoO-
A-TCL-T^TT A-
- 3 ~
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss*
Treasury Department Circular No* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue.
Copies of the circular may be obtained from any
Federal Heserve Bank or Branch*
o O o
nrirr a
tBPtiJUny
at
- 2Reserve Banks and Branches,*following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejec
tion thereof.
The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final.
Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on
October 22. lQhl________ .
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here
after enacted.
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
i^EASURY DEPARTMENT
Washington.
FOR RELEASE, MOB: ILG NEWSPAPERS,
Priday, October 17, 1941»
*± *
The Secretary of the treasury, hy this public notice, invites tenders
for $150.000.000
or thereabouts, of
91 _-day Treasury bills, to be issued
afc&b:
on a discount basis under competitive bidding.
be dated
October 22, 19^1
and will mature
The bills of this series will
January 21. 19^-2__________ ,
when the face amount will be payable without interest.
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the r
closing hour, two o^lock p. m., Eastern Standard time,
Tenders will not be received at the Treasury Department, Washington.
gp.._.IffeU - I
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi- |
ties.
Tenders from others must be a-ccompanied by payment of 10 percent of the
face amount of Treasury bills aunlied for, unless the tenders are accompanied hy
an express guaranty of payment by an incorporated bank or trust company.
closing hour, tenders will be opened at the Federalj
TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING NEWSPAPERS,
Friday,..October.17.«.XSkl-___ •
iii,
The Secretary of the treasury, "by this public notice, invites tenders
for $160, OOP * 000____, or thereabouts, of
.3 1 . _-day Treasury bills, to be issued
on a discount basis under competitive bidding.
be dated
October 22, 19^1
and will mature
The Dills of this series will
January 21, 19^2__________ ,
when the face amount will be payable without interest*
They will be issued in
bearer form only, and in denominations of *£1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o lclock p, m,, Eastern Standard time,
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e, g., 99,925.
may not be used.
Fractions i
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi- j
ties.
Tenders from others must be accompanied by payment of 10 percent of the
face amount of Treasury bills auDlied for, unless the tenders a.re accompanied hy !
an express guaranty of payment by an incorporated bank or trust company.
Immediately a.fter the closing hour, tenders will be opened at the Federa,
TREASURY DEPARTMENT
Washington.
FOR RELEASE, MORNING NEWSPAPERS,
Friday, October 17, 1941.
The Secretary of the Treasury, by this public notice, invites
tenders ior $150,000,000, or thereabouts, of 91-day Treasury bills,
to be issued on a discount basis under competitive bidding.
The
bills of this series will be dated October 22, 1941, and will
mature January 21, 1942, when the face amount will be payable with
out interest.
They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches
up to the closing hour, two o ’clock p. m., Eastern Standard time,
Monday, October 20, 1941.
Tenders will not be received at the
ireasury Department, Washington.
Each tender must be for an even
multiple of $1,000, and the price offered must be expressed on the
basis of 100, with not more than three decimals, e. g., 99.925.
Fractions may not be used.
It is urged that tenders be made on
the printed forms and forwarded in the special envelopes which
will be supplied by Federal Reserve Banks or Branches on application
therefor.
Tenders will be received without denosit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 10 percent of the face amount of Treasury
bills applied for, unless the tenders are accompanied by an express
guaranty of payment by an incorporated bank or trust company.
28-10
2
Immediately after the closing hour,, tenders will be opened
at the Federal Reserve Banks and Branches, following which public
announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids.
Those submitting tenders
will be advised of the acceptance'or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final.
Payment of accepted tenders
at the prices offered must be made or completed at the Federal
Reserve Bank in cash or other immediately available funds on
October 22, 1941.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills shall not have any special treatment,
as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other
excise taxes, whether Federal or State, but shall be exempt from
all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority.
For purposes of taxation
the amount of discount at which Treasury bills.are originally sold
by the United States shall be considered to be interest.
Under
3
Sections 42 and 117 (a) (1) of the Internal Revenue Code, as
amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be
considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from considera
tion as capital assets.
Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include
in his income tax return only the difference between the price
paid for such bills, whether on original issue or on subsequent
purchase, and the amount actually received either upon sale or
redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss..
Treasury Department Circular No.- 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
-oOo-
o
Accordingly, although a merchant may absorb the tax and not
pass it on to the customer, he may not make use of that fact in any
manner to induce the sale of his merchandise without subjecting him
self to possible liability for the penalty specified in the law.
-0O0-
TREASURY DEPARTMENT
•Washington
FOR IMMEDIATE RELEASE,
Friday, October 17, 19-41.
Press Service
No. "p-
jj
The Bureau of Internal Revenue today issued a warning to
merchants not to advertise
that they are paying retail taxes
on certain articles and not passing on the cost to their customers.
Crft. i
The^. RevenueJ
'
afiieiel-c: pointed out, prohibits such
advertising and provides a fine of not more than f1,000 for violation
o f . prohibition.
A
Reports received by the Bureau, officials said, indicate that
a lack of knowledge apparently prevails concerning the penalty which
is applicable to such advertising concerning the retail taxes on sales
of jewelry, furs and toilet preparations.
To create a demand for their products, some merchants are
publishing advertisements containing statements to the effect that
the retail taxes are not included in the sales price of the articles
because the taxes will be paid by them and not passed on to the cus
tomer, the officials said.
To prevent the new retail sales taxes from being used as a
means of deriving unfair competitive advantages, the law provides for
the fine in connection with the sale of a taxable article and makes
illegal any statement, whether written or oral, whether in advertisement
or otherwise, intended or calculated to lead prospective purchasers to
believe that the sale price of the article does not include the retail
sales tax.
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Fridsy , October 17, 1941 <
Press Service
No. 28-11
The B u r e a u of Internal Re v e n u e today issued a w a r n i n g to
m e r c h a n t s not to advertise that t h e y are p a y i n g retail taxes on
certain articles and not p a s s i n g on the cost to their customers*
The Internal Revenue Code, officials p o i n t e d out, prohibits
such adve r t i s i n g and p r o vides a fine of not m o r e than § 1 .000 for
v i o lation of the prohibition.
Reports re c e i v e d by the Bureau, officials said, indicate that
a lack^ of k n o w l e d g e a p p a r e n t l y pr e v a i l s concerning the p e n a l t y
w h i c h is applicable to such a d v e r t i s i n g concerning the retail
taxes on sales of jewelry, furs and toilet preparations.
#To ^create a demand for their products, some me r c h a n t s are
p u b l i s h i n g ad v e r t i s e m e n t s containing statements to the effect that
the ^retail taxes are not included in the sales price of the
articles because the taxes will be pai d by them and not p a s s e d on
to the customer, the o f f icia ls said»
To prevent the n ew retail sales taxes f r o m being u s e d as a
means of d e r iving u n f a i r competitive advantages, the law provides
for the fine in connection w i t h the sale of a taxable article
an d m a k e s illegal a ny statement, w h e t h e r w r i t t e n or oral, whether
in adver t i s e m e n t or otherwise, intended or calc u l a t e d to lead
p r o s pective purc h a s e r s to b e l ieve that the sale price of the
article does n ot Include the retail sales tax.
Accordingly, al t h o u g h s m e r c h a n t m a y absorb the tax and not
pass it on to the customer, he m a y n ot make u s e of that fact in
an y m a n n e r to induce the sale of his m e r c h a n d i s e w i thout subject*
ing h i m s e l f to possible l i a b i l i t y f o r the p e n a l t y specified in the
law.
-OoO
m
s u e t dspaotifjit
Washington
FOR RELEASE, RQ&lim M a i U p *
October 21,. 2941,-----
Press Service
2 . ? - /
2_
The Secretary of the Treasury announced last evening that the tenders
for 1150,000,000, or thereabouts, of 91-day Treasury hills, to be dated
October 22, 1941, end to nature January 21, 1942, uhleh sere offered on
October 1?, were opened at the federal Reserve Banks on October 20*
The details of this issue are as follows t
Total applied for ** $303,052,000
Total accepted
m 150,105,000
Range of accepted bidet
High
lew
Average price
* 100*
m 99*909 Equivalent rate approximately 0*044 percent
- 99*994
m
*
n
0.024
*
(71 percent of the amount bid for at the low price was accepted)
¡1
■iudl
'A OTTmr
îiXJlÀoUilJL
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, October 21, 1941
TÜ/2Ü/41
~ --- --- —
-
Press Service
Ain
19
■¡■»0* C9Q
jU *”x
xhe Secretary of the Treasury announced last evening that the
tenders for $150,000,000, or thereabouts, of 91-day Treasury bills,
to be dated October 22, 1941, and to mature January 21, 1942,
winch were offered on October 17, were opened at the Federal
Reserve Banks on October 20*
The details' of this issue are as follows:
Total applied for - $303,852,000
Total accepted
- 150,185,000
Range of accepted bids:
High - 100*
Low - 99.989 Equivalent rate approximately 0.044 percent
Average price 99.994 ”
"
”
J 0.024
”
(71 percent of the amount bid for at the lew/ price was accepted
THE «MI Ti® STATES OF AMERICA
TREASURY MOPES
Tax Series B-1%3
Tax Series A-1943
Dated August 1, 1 % 1
Dus August 1, 1943
Issued at Par and Accrued Interest
ACCEPTABLE AT PAH AMD ACCRUED I I T i » f II M f M T Of FEDERAL I H C O M TAXES
Second Amendment to
Department Circular Mo* 667
TREASURY DEFARTR2H?,
Office of the Secretary,
Washington, October 21, 1%1,
Fiscal Service
Bureau of the Public Debt
1.
Section II (X) of Department Circular Mo* 667, dated July 32, 1941, is
hereby amended to read as follows)
i
1« General* - The notes of both series will be dated August 1, 1941»
and will mature August 1, 1943* The owner*s name and address, and the date
of issue will be entered on each note at the time of its issue by a Federal
Reserve Bank* The month in which payment is redeived by a Federal Reserve
Bank or Branch, or by the Treasurer of the United States, will determine tin
purchase prise and issue date of each note* The notes ^ay not be trace*
ferred except in the case of notes Issued in the na&e of a parent corporation,
in which case they may be reissued in the nans of a subsidiary of that cor
poration with the same dating as the notes surrendered, upon presentation to
the Federal Reserve Bank of issuej for the purposes of this paragraph a sub
sidiary corporation is defined as one more than 50 per cent of wlioas stoat
with voting power is held by another corporation* Mo hypothecation of tha
notes on any account will be recognised by the Treasury Department, and they
will not be accepted to secure deposits of public money* Except as herein
provided, the notee will be subject to the general regulations of ths Treasury
Department, now or hereafter prescribed, governing bonds and notes of ths
United States*
(Signed) H. Morgenthau, Jr
Secretary of the Treasury.
fé
2 f ' / 3
For immediate release
Secretary Morgenthau has approved
an amendment to Treasury Department Circular No. 667,
the original announcement o f issue of two series of
T a x Savings Notes,
in order to permit parent corporations
to buy the notes and subsequently to transfer them to
subsidiaries.
The text of the amended section of
the circular is as follows:
X
%
\\
TREASURY DEPARTI',CENT
Washington
POR IMMEDIATE RELEASE r
Wednesday. October 22T
Press Service
No* 28-13
1941.
Circular Ho 667
^as approved an amendment to Treasury Department
E T . r f «0* 667 the original announcement of issue of two series of Tar
Notes, m order to permit parent corporations to w
+A
*<,
!
,Iax Savlags
to transfer them to subsidiaries. S e tert of ?he L a n L r
tf
sf '^quently
is as follows:
*
amen<^e<i section of the circular
THE UNITED STATES OP AMERICA
TREASURY NOTES
Tax Series A-1943
Tax Series B-1943
Dated August
1,
&
x, a1941
jux
~
.
■ 1,
, 1943
Due
August
Issued at Par and Accrued Interest
ACCEPTABLE AT PAR AND ACCRUED INTEREST IN PAYMENT OP FEDERAL INCOME TAXES
1941
Second Amendaient to
Department Circular No*- 667
TREASURY DEPARTMENT
Office of the Secretary
Washington, October 21 ■ 194
Fiscal Service
Bureau of the Public Debt
1.
Section II (1) of Department Circular No. 667, dated July 22, 1941, is
hereby amended to read as follows:
1. General..- The notes of both series will he dated August 1, 1941, and
will mature August 1, 1943. The owner's name and address, and the date of
issue will he entered on each note at the time of its issue hy a Federal
Heserve Bank. The month in which payment is received hy a Federal Reserve
Bank or Branch, or hy the Treasurer of the United States, will determine the
purchase irice and issue date of each note. The notes may not he transerred except m the case of notes issued in the name of a parent corporation
m which case they may be reissued in the name of a subsidiary of that corthe same dating as the notes surrendered, upon presentation to
the Federal R eserve Bank of issue; for the purposes of this paragraph a sub
sidiary corporation is defined as one more than 50 per cent of whose stock
with voting power is held by another corporation. No hypothecation of the
notes on any account will be recognized by the Treasury Department, and they
w i H not be accepted to secure deposits of public money. Except as herein
p ovided, the notes will be subject to the general regulations of the Treasury
Department now or hereafter prescribed, governing bonds and notes of the
united States.
(Signed) H. Morgenthau, Jr. ;*
Secretary of the Treasury.
-OoO-
TRBASD8I d b p a b m s t
Washington
FOB IMMEDIATE RELEASE,
Prese Sendee
p, s - / f
IMtottor. Oatabar 22. ml,
Secretary of tho Treasury Borfontina today announced tho f i m i subaorlptlon and
allot« m t figuro» with respect to tho oorront offering of 2-1/2 percent Iraaoury Bondi
«f 1967-72.
la addition to tho aaount allotted on p A U i eubecriptlona, #93,256,950
aedi
of tho bonda here b a m allottod to Oorwraannt inreetaent aoeonnta, within the
9100,000,000 reservation.
Subaorlptlon» and allotoanta aora dirlded among the aererai indorai Reserre dìì-
Ms;
trieta and the Treasury as foUowst
Federal Reserve
District
Beiteli
New York
Philadelphia
Cleveland
Hehaotid
Atlanta
Chicago
St. tenie
Minneapolis
Kansas City
Dalla a
San Praneieeo
Treasury
Government Invi
«ent Accounts
TOTAL
Total Q*fi*
Subscriptions
Received
9
Total Cash
Subscriptions
Allotted
951,726,6»
6,921,587,5»
616,862,5»
691,193,300
118,370,600
535*350,3»
1,091,686,900
255,191,6»
163,917,3»
137,529,200
193,607,0»
666,072,0»
22 ,666,300
9
Total Exchange
Subscriptions
Received
(Allotted in full)
119,071,100
613,575,9»
77,328,3»
86,556,300
52.392.900
67,069,9»
136,678,6»
32,022,100
20.561.900
17,275,800
26,267,600
55.826.900
2,02,100
9 12,907,700
127,660/100
7,763,300
3,296,700
2,562,900
509,200
13,636,300
3,336,800
9,116,600
1,367,000
2.351.500
3.997.500
513,600
m - 93.256.9»
♦1,600,676,350
9188,971,200
H»
910,665,361,100
p
p
$
ty/A
/
/
K
s P
>
\
Total
Subscription!
Allotted
9 131,970,«
763,216,0»
85,091,6»
89,851,000
56,955,«
67,579,1»
1 », 312,7»
35,356,«
29,656,500
18,622,«
26,619,100
59,826/10
3,325,700
93.256.9»
*1,589,667,5»
Hi
TREASURY DEPARTMEHT
Washington
imi*
FOR IMMEDIATS RELEASE'*
Wednesday, October 22. 1941.
Press Service
Ho, 28-14
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 1967-72*
In addition to the amount allotted on public sub
scriptions, $93,,256 r950 of the bonds have been allotted to Government investment
accounts, within the $100,000,000 reservation*
u»
Subscriptions and allotments were divided among the several Federal Reserve
Districts and the Treasury as followsj-
tornii»
Federal Reserve
District
im i
m i
m
m
IMI
MI
»,»
m
Total Cash
Subscriptions
Received
Total Cash
Subscriptions
Allotted
Boston
$ 951,726,650 $ 119,071,100
Hew York
4,921,587,550
615,575,950
Philadelphia
616,842,550
77 ,,328,350
Cleveland
691,193,300
86,556, 300
Richmond
418,370,400
52,392,900
Atlanta
535,350,350
67,069,950
Chicago
1,091,686,.900
136,678,450
St* Louis
255,191,450
32,022,100
Minneapolis
163,917,350
20,541,900
Kansas City
137,529,200
17,275,800
Dallas
193,407,050
24,267,600
San Francisco
446,072,050
55,826,900
Treasury
22,466,300
2,812,100
Government Invests
ment Accounts
93.256 *950
TOTAL
$10,445,341,100 $1,400,676,350
OoO-
Total Exchange
Subscriptions
Received
(Allotted in full)
$ 12,907,700
127 *640,100
7,763,300
3,294,700
2,562,900
509,200
13,634,300
3,334,800
9,114,600
1,347,000
2,351,500
3*997,500
513,600
$188,971,200
Total
Subscriptions
Allotted
131,978,800
743,216,050
85,091,650
89,851,000
54.955.800
67,579,150
150,312,750
35,356,900
29,656,500
18.622.800
26,619,100
59 ,824,400
3,325,700
93.256.950
$1,589,647,5500
- 3~
as official agencies.
2.
The Secretar/ of the Treasury reserves thè righi io reject an/ subscrip.
tien, in whole or in part, t© allot lesa titan the aaount of notes applied for,
and te close the bodes as to an/ or a H subscriptions at an/ tins sithout notice;
and an/ action kc as/ talee in tfesse respects sh&ll be Unsi.
réservations, all subscriptions sili be allotted in fall.
Subject to these
Allotaezst notices vili
be sert mit pranptly tapen ailrtsert.
If. PATMSST
1. Fa/eent at par fer notes allotted hereunder sert be ande on or before
Movenber 1, 1941, or en Inter allotsaent, and sa/ be nade on2/ through application
of tbe principal preeeeds of payment of a Ilice par assort of Bseonstruction Finance
Corporation notes of Series P, mturtng Hoverter 1, 1941, or of C f i d ity Crédit
Corporation notes of Sortes S, satnrtnf Kovanber 15, 1941*
Corporation notes of Sortes
Cosendit/ Orodit
S tendered fer perchase art hâve coupons d&ted Mese»
ber 15, 1941, attached, and passent sili be sode at par and aoented interest to
} &
Hovembcr 1, 1941.
Acersed interest fresi Jfey 45, 1941 to B o m b e r 1, 1941 on
Serles S notes (#4.619565 P®r #1,000) «ili be pald folloeing acceptance of the note,
-
f, manaiAi. paoYISIGMS
1.
As fiscal agente of the United States, foderai Beeerve Banks are authoriwi
and requeated te reçoive subscriptions, te aalee allotsents on tbe basis and mp t© thi
anconis Indlc&ted by the
Seoretaiy of the Treaaury te the Federal Beeerve Bank» of
the respective districts, te issue allotment notices, te rsceive pa/nent for nets
allotted, te sako delivery ©f notes en full-p&ld subscriptions allotted, and they
se/ lesse intérim receipts pending delivery of the definitive notes.
2.
The Secretar/ of the Treasuzy aay at any tine, or fres tiñe to Use, pro
scribe supplenental or asendatory m i e s and régulations goveming the effering,
which «111 be finsswl neted proaptly te the Federal Beeerve Banks.
HEHRT MDBQEBTHÂU, ¿B.,
Secretar/ of the troasuiy
tf^i
m
WBmm
¡jSi1*!><¡c’^«¿Sp*‘?'íí^
W¿ÍA1
-ay ^
Septeaber 15 la «»di y m r t o l l tas principal a n o t o bocones payable.
Th.y wlll .atar. Harch 15, 194», and «111 no* be mbjeot te «all for rede»pU<*
prior to » t e i i y .
2«
?b* írnif^ doritod
ir m
tfe* notos shsil bo subjoct to olí Federal taxes,
now or hereafter iaposed. fb* note» «hall feo oub4eet to ootato, lofeorltoaoo» gift
/^
or ottar «tose tan», «hetaer Federal/« 8tata, tat ehall be exa.pt « « ■ ‘U ta*.
ation now or hsrsaftor inposed o. tas principal or lataroot thereef by aay SUta,
or any of tho poassssiona of ta* »altad «ata#, or b y *«y l»“ 1 taxin« »^tarlty.
3.
The notos wlll be accepted at por tol a « snob tino and «ador sueh misa
and regalations as s h a U ta proserltad or approvsd by tho So«rotaiy of the Treasaiy
ln paynent oí incoa» and profita tajas payabl* at tae naturlty of the notes.
4.
■ m
The notos wlll ta aoeeptable
to
so«rs deposita of pabilo maneja, tat
aot toar tho droolatioB prlTileg*.
5.
Bearer notas with lntarest emboas attacbed wlll ta lomad la denoaina-
tions of *M», 1500, »1,000, »5,000, »10,000 and »100,000.
The sotas « 1 H t o b.
issusd la reglstered foía.
6.
The netas wlll ta rnbjeot to tbe general regnlation* of the Treasury
Departaent, now or barsaftar preeeribod, goweroing »altad States notas.
.S
m
CB3CRIPTI0K AM
DAUSBEBMT
1.
Sdbscri-ptions .111 bo recelred at tba Federal toser« t a t o and Braaoh*
and at tas trmsnry Departaent, Washington, and shonld be aecoopanied by taeonstmetloB Flntnos Corpotolon notas of tartos F tandorsd fer paynto, or Oomodltj
Credlt Corporation notas of tardos X tsndsrod fer parchase, to a par anoto «jal
ta tho par m e t o of freaawry
tatas of
torios
A-194» subacidbed
for.
Banking
lnstitutions generally nay stodt stocriptioos for aeeoto of «atañer*, bwt
«oly
tbe Federal Besen. B a t o and tas Tressury Departaent a » awtborlísd
m sm sm sm m am m m
mi
m
ta art
i
W m W STATES OF AMERICA
X PERCMT TBSASBSr MOTES OF SERIES A-1946
Beied and Bearing internet fm i Iiwaribir X, 1941
Bee Marsh 15, 1944
Intereat payable M&rch 15 and September 15
treasury m n m m m »
194X
Bepartaent Circular 9a» 671
Office of til« S«cr»tary,
Washington, Oetober ¿3, 1941,
Fiscal Service
Airean of the Public Bebt
I.
X*
OFFERISG OF S O Ü S AMO UíTOFATIOS POS TEÍiDSRS
The Seeretary of the Treasury, pursuant to ib« authority of the Second
Liberty Bond Act, a« aaended, invites aubscriptiono, at par, fren the people of
the United States for X percent notes of the Uhited States, designated Treasury
Motes of Series 4*1946, the offering te be United te the anount of subscriptiona
enterad as provided In the teo next succeeding paragrapha.
2»
The Seeretary of the Treasury offers te apply ths proceeds of payeent of
Beconstnictlon Finanee Corporation Motos of Series P, natnring Moveaber 1, 1941,
tendered for paynesst in accordance eith Sostiene XXI and I? of this circular, te
payeent for Treasury notes subscribed for hereunder*
Tendero of Series P notes
for that parpóse are invitad*
3*
The Seeretary of the Treasury, en behalf of Qmnodlty Credit Oospora»
tion, offers te parchase en iovenber X, 1941, at par and a s m a d internet, Connsdlty Credit Corporation Metes of Sorbos S, naturlng Iovenber 15, 1941, te ths
extent te uhi«!t the helésre thereof subscribe for Treasury notes hereunder.
Tendere of Series S netos for that parpóse are invitad*
xx*
1»
m s m r n m of motes.
The notes eill he datad Moveaber 1, 1941, and «dll bear intereat fren
that date at tile rata of X percent per asna, payable on a seaiannu&l basia «o
Credit Corporation Hete» of Serie« I.
The text
of the offie lai drooler follow»:
■*-
outatanding.
Theo# provisión» are speeifieally «et forth in the
offieial circular releasea today.
Beider« of Reeonatruotion Finanee Corporation note« of Serie« P
who des Ire the proceeds of payment applied to the purohae« of « like
par «nennt of the new not«« aay nibserlbe for an «nennt «quäl to the
aaount ef Serie« P note« ee teadered for payment.
the Seeretary of the freeenry, on hehalf of the Oennodity Credit
Corporation, öfter« to pnrehes« on Xorember 1, 19dl «t par and acercad
Interest to thet date, Oennodity Credit Corporation notes of Serle# X
to the enteilt thet the holder« of «n«h M t « « «ubeeribe for the n««
Treasury note««
Subaoription« «111 be reeeired et the Federei teeerre Benin and
Brauches, and at the freaenry Department, Washington,
Banking Institu
tion« generaU y aay snbnit «nbaeription» for aeeount of eusteuer«, bnt
only the Federal Sessrre Bank« and the Treaanry Department er« «uthorlzed
to «et an offletal agencies.
Suheoriptions should b« aoeompanied by a
11k« f««« «nennt of Reconstruction Finan««! Corporation Hots« ef Serie# P,
or of Commodity Credit Corporation Bote« of Serles X, «Ith final eoupon
in« Kbrember 15, 1941, attached.
Following the socártenos of tho Sorte« I
not««, acornad Interest fron May 15 to Horeraber 1, 1941, about #4.62 per
$1,000 face «nennt, «111 bo paid tho owners of tho surrendered note».
The right 1s reserred to oloso tho beeka «« to «ny or «11 «nbserlptlos«
at aay tino «ithout notice.
Subjeet to tho reaerrationa «et forth in the t
offieial circular, all «nbaeription« will be ellotted in full,
There «re no« out Standing $299,955,000 of 7/8 pereent Reconstruction
Finanee Corporation Bete« of Sari«« P «ad $204,241,000 of 1 pereant Commodity
rmmxm m pm m n
Press Service
Wo.
m i « , homing m ts p m m
Hmrsdecy, October 23, 1941«
for
W
W
S
Secretary of the Treaaory lorganthau today announced the plan for re
financing the outstanding notes of Serlas F of the Beeonetrustion Finance
Corporation »ataring November 1, 1941, and the outstanding notes of Serles X
of the Commodity Credit Corporation naturia« November 18, 1941«
X» order to
reduee the number of financing operation« la the market on hahalf of the
Government end to elmpllfy the financing
p ro gra m ,
m
issue of Treeeury notes
is hslng made svsllehls to the holders of the tvo maturing corporate issues.
It is eontsnplated that ell of the Government-guaranteed issues now outstand
ing in the hands of the public will eventually he converted into TTsasnry isstts )
so that the market will ultimately be dealing with but on# sises of Oovemsent
obligation.
Tha Treasury notan now offered will be dated November 1, 1941, and will
Ü a m s B E x a t s s m * * ’^ . . ■
3 E L S 5 M
bear lntareat from that date at the rote of 1 percent per annum payable on s
sentannual baaia on March 18 and September 18 in each year.
They will mature
on Nareh 18, 1948, and will not ha subject to call for redemption prior to
maturity.
They will be issued only im bearer form with coupons attached, in
denominations of $100, 1800, $1,000, $8,000, $10,000 and $100,000.
Pursuant to tbs provisions of the Public Debt Act of 1941, interest upes
the notes bow offered shall not have any exemption, as such, under Federal Tat
Acts new or hereafter anee ted.
Otherwise they will be accorded the same
exemptlone from taxation as ere accorded ether Issues of Treasury notes new
TREASURY DEPARTMENT
Washington
FOR RELEASE,
NEWSPAPERS,
Thursday, O c t o b e r 23, 1941.
l b / 22/ 41
Press Service
No. 28-15
S e c r e t a r y of the T r e a s u r y M o r g e n t h a u today a n n o u n c e d the p lan for
r e f i n a n c i n g the o u t s t a n d i n g n o t e s of Series P of the R e c o n s t r u c t i o n
F i nance C o r p o r a t i o n m a t u r i n g N o v e m b e r 1, 1941, and the o u t s t a n d i n g
notes of Series E o f the C o m m o d i t y Cred i t C o r p o r a t i o n m a t u r i n g
N o v e m b e r 15, 1941.
In o r d e r to reduce the n u m b e r of f i n ancing o p e r a
tions in the m a r k e t on b e h a l f of the G o v e r n m e n t and to simplify the
f i n a n c i n g program, an issue of T r e a s u r y note.s is b e i n g m ade available
to the h o l d e r s of the two m a t u r i n g corporate issues.
It is contemp l a t e d that all of the G o v e r n m e n t - g u a r a n t e e d issues n o w o u t s t a n d i n g
in the hands of the publ i c will e v e n t u a l l y be con v e r t e d into T r e a s u r y
issues so that the m a r k e t will u l t i m a t e l y be dealing w i t h but one
class of G o v e r n m e n t obligation.
The T r e a s u r y notes n o w o f f e r e d will be dated N o v e m b e r 1, 1941,
and will Dear interest f r o m that date ait the rate of 1 p e r c e n t per
a n n u m p a y able on a semiannual basis on M a r c h 15 and S e p t e m b e r 15
in eac h year.
T h e y will m a t u r e on M a r c h 15, 1946, and will n ot be
subject to call for r e d e m p t i o n p r i o r to maturity.
The y will be
issued only in b e a r e r f o r m w i t h coupons attached, in denomi n a t i o n s of
$100, ^500, $1,000, $5,000, $ 1 0 , 0 0 0 and $100,000.
P u r suant to the p r o v i s i o n s of the Public Debt A ct of 1941,
interest u p o n the noL.es n o w o f f e r e d shall no t have a n y exemption, as
such, u n d e r Federal T ax Acts n o w or h e r e a f t e r enacted.
O t h erwise they
will be a c c o r d e d the same exemptions f r o m taxation as are acc o r d e d
other issues of T r e a s u r y n o tes n o w outstanding.
These p r o v isions are
s p e c i f i c a l l y set f o r t h in the official c i r c u l a r r e l eased today.
H o l ders of R e c o n s t r u c t i o n Finance C o r p o r a t i o h n o tes of Series P
who desire the proceeds of p a y ment ap p l i e d to the purchase of a like
p a r amount of the n e w n o tes ma.y subscribe for an amount equal to the
amount of Series P n o t e s so t e n dered for payment.
T h e ^ S e c r e t a r y of the Treasury, on b e h a l f of the C o m m o d i t y Credit
Corporation, offers to p u r c h a s e on N o v e m b e r 1, 1941 at p ar and accrued
interest to that date, C o m m o d i t y Credit C o r p o r a t i o n n o t e s of Series E
to the extent that the ho l d e r s of such notes subscribe for the n e w
T r e a s u r y notes.
S u b s c r i p t i o n s will be r e c eived at the Federal Res ■rve Banks and
Branches, and at the T r e a s u r y Department, W a s h ington,
B a n king
i n s t i tutions g e n e r a l l y m a y submit subsc r i p t i o n s for account of
customers, but onl y the Federal Reserve B a nks and the T r e a s u r y D e p a r t
m e n t are a u t h o r i z e d to act as official agencies.
Su b s c r i p t i o n s should
be a c c o m p a n i e d b y a like face amount of R e c o n s t r u c t i o n Finance
2 Ncte^o^S-rfp^-p
P„ 1 1 'J ? f
° f -?^r p ? E ?' o r o f Co™ w i i t y C r e d i t C o r p o r r t i o n
S e r i e s E, w i t h final coupon due N o v e m b e r 15, 1941,
a t t ache
6f, ihe Serles ? n o t e s - S o t t e d i n t erest
will b e /n s ? d t fhlIOVembGr N
? 4 1 ' a b out $ 4 *68 P er $ 1 , 0 0 0 face amount,
-11 o g p a i d the owners of ithe
s u r r e n d e r e d notes.
The right is r e s e r v e d to close the books as to a n y or all subscriptions at any time w i t h o u t notice,
Su b j e c t to the reservati ons
set f o r t h in the official circular, all
s u bscriptions will be allotted
in full.
There a
re n o w o u t s t a n d i n g # 2 9 9 , 8 3 9 , 0 0 0 o f 7/8 p e r c e n t Reconstruction Finance
C o r p o r a t i o n N o t e s o f S e r i e s P and # 2 0 4 , 2 4 1 , 0 0 0 of 1 percent Cornmodi ty C r e d i t C o r p o r a t i o n N o t e s of Series E.
The
text of the o f f icial
circu l a r follows:
U N I T E D STAT E S O P AM E R I C A
1 P E R C E N T T R E A S U R Y N O T E S O P SERIES A - 1 9 4 6
D a ted and B e a r i n g interest f r o m N o v e m b e r 1, 1941
Due M a r c h 15,
1946
Interest payable M a r c h 15 and S e p t e m b e r 15
1941
D e p a r t m e n t C i r c u l a r No.
671
TREA S U R Y D E P A R T M E N T ,
Office of the Secretary,
W a s h i n g t o n , Oc t o b e r 23,
1941.
Fiscal Service
B u r e a u of the Public D e b t
I.
O F F E R I N G O P N O T E S A N D I N V I TATION FOR T E N DERS
1.
The S e c r e t a r y of the Treasury, p u r s u a n t to the a u t h o r i t y of
the S e c o n d L i b e r t y B o n d Act, as amended, invites subscriptions, at par,
from the peop l e o f the U n i t e d States for 1 p e r c e n t notes of the U n i t e d
States, d e s i g n a t e d T r e a s u r y Notes of Series A-1946, the o f f ering to be
l i m i t e d to the amount of s u b s c r iptions e n t e r e d as p r o v i d e d in the two
next succeeding paragraphs.
2.
The S e c r e t a r y of the T r e a s u r y offers to apply the proceeds of
payment of R e c o n s t r u c t i o n Finance C o r p o r a t i o n Notes of Series P,
m a t u r i n g N o v e m b e r 1, 1941, t e n dered for pa y m e n t in acc o r d a n c e w i t h
Sections III and IV of this circular, to p a y m e n t for T r e a s u r y notes
s u b s c r i b e d for hereunder.
Tenders of Series P notes for that purpose
are Invited.
3. ^The S e c r e t a r y of the Treasury, on b e h a l f of C o m m o d i t y Credit
Corporation, offers to pu r c h a s e on N o v e m b e r 1, 1941, at par and
a c c r u e d interest, C o m m o d i t y Credit C o r p o r a t i o n Notes of Series E,
m a t u r i n g N o v e m b e r 15, 1941, to the extent to w h i c h the h o l d e r s thereof
subscribe for T r e a s u r y n o tes hereunder.
T e nders of Series E n o tes for
that p u r p o s e are invited.
II. D E S C R I P T I O N O P N O TES
*
1 \
ihe n o tes wil1 be d a t e d N o v e m b e r 1, 1941, and will b e a r
date at the rate of 1 P e r c e n t per annum, payable on
semiannual b a s i s on M a r c h 15 and S e p t e m b e r 15 in each yea r until the
pri n c i p a l amount becomes payable.
T h e y will m a t u r e M a r c h 15, 1946.
and will not be subject to call for red e m p t i o n p r i o r to maturity.
.
2
The income d e r ived f r o m the notes shill be subject to all
Federal t axes, n o w or h e r e a f t e r Imposed.
The n o tes shall be subject
to estate , inheritance, g ift or o t h e r excise taxes, w h e t h e r Federal
or
b ut o
shall
ey^rrn-i- ixntaB
-r-n/'rvT alli taxation
+.
■_.
4
^ J Stats,
15,
j.,
xicta.0. be
ue exempt;
n o w or ha tv-';f ter»
f
m °f ’
b7 “*?
the p o s s e s s i o n s 1of"''the
State
1 tfle U n i t e d States,
or b y any local taxing authority,
such T O l e ? p n d 0 r e K u ^ t i o h i ' f l 9 C s h ^ f U
S e c r e t a r y o f t h f f r f 'f
f
y
I
able at the m a t u r i t y of the n o t ^ !
***“ d u U n g suoh **»»
under
n
v
e
n
t ap p r o v e d by the
lnCOme Bnd p r ofits t£lxes P«7-
m o n ey*;
°
^
f —
denominationfofsiOO ^ m ^ U n o n ° ° U ° ^
The
h o t ., « j V L r S ' l t f S S
w i l 1 de ^ s u e d
in
S - S g i . ^ f o S ? ' 000 “ a •1 0 0 ’ 0” -
¡ Ls c rib
J We d , governing
"«»»*“ « » «
h e r c d t e r ¡p re
United« .
Tree,';, S p ,
S
ta te s n o te s .
III.
SUBSCRIPTION AND ALLOTMENT
and B r a n c h e s 8
r r v T f f
g e n e r a l l y m a y submit
* K * %
sub^er^-nt-i r»f c. a
Pe? eral R e s erve Banks
,*
B a n k i n g institutions
the Federal R e s erve B r n k s ^ f th e T r e L f ° ° £ l ° £ n en f
? *&
to act as official agencies.
y hepaj?tm|nt are a u t h o r i z e d
any s u b s c r i p t i o n r i n T h o L f r
s c r i p t i o n s f t tf y
f A e f f f u t
în f a r f
p
0 "?
f f i T t
tCf
UgU
3 ns U .■W
t0
»U
reiect
sub-
these respects shall be r k f
notice; and an y action he m a y take in
1 especes snail be final. S u b j e c t to these reservrtic
.ons
all
subscriptions will b e a l l o t t e d in full,
A
llotm
ent
n
o
tic
e
s
w
ill
be sen t
out p r o m p t l y u p o n allotment.
IV.
PAYMENT
1.
jfc? f2
n!o t f s a l l o t t e d h e r e u n d e,r m u s t be m ade on 0 2
before N o v e m b e r 1,° ^1941.
orr S
through a p p l i c a t i o n of i+i* '.L c. ? c.llotment, and m a y be mad e only
amount of R e c m s t r u c t i -n
C1? r ~ P r o ceeds of p a y m e n t of a like par
m a t u r i n g N o v e m b e ^ r 19 ^
c C o r p o r a t i o n notes of Series P,
*IT Commodity
n* 7 CJ ? d i t C r e d i t
S e r i e s I , ma t u r i n g N o v e m b e r l
n o t e s o f q p p n c 1/ /
I
,
15> 1941 ,
ber 15,
1941
purchase must have
interest to N o v e n ^ r l ’
November 1
1941 ™ <f/ . J 4 4 ‘
following acceptance
^
iq h n o t e s o f
C orporation
coupons dated N o v e m W
Accrn^ d interest f r o m M a y 15,
o P t h e notes!
^ 4# 6 1 9 5 6 5 P er $ > l > 0 0 0 )
accrued
1941 to
will b e paid
3
V.
GENERAL PROVISIONS
are authorized and requested
S t f;t e s > pfd e r a l Reserve Banks
ments on the b a s i s and up to the amount s? b®?r l Pt l o n s > to make a l l o t Of the Treasury to tSe PederaÎ R e s e r ^
^ ^
!?eret« 7
districts, to issue allotment
°f the respective
allotted, to m a k e d e l i v e r y of d i t e s
P a y m e n t for notes
ted, and they m a y i s s u e ! ? t e r l m Y L V V 1 1_P ? ld subscriptions allotdef i n i t i v e n o t e s ?
n t e r i m receipts p e n d i n g d e l i v e r y of the
to t i m e , p r e \ c L ° L et : Z p ï L e ? L i rf
e r SUry T Ï * *
tiKle- «
f r o m time
g o v e r n i n g the o f f e r i n g ? w h i c h will ^‘“ c” d a t o r y r ^ e s nnd reS u l s t ions
Federal R e s erve B a n k s ?
com m u n icated p r o m p t l y to the
H E N R Y MORGENTHAU, JR, _
S e c r e t a r y of the Treasury.
- 13 -
into a bitter future of enormous debts, heavy interest burdens, and
low national income.
But the sacrifices of a heavier tax burden today
mean a better life in the future.
Those sacrifices will be a small
price to pay for the maintenance of our way of life in the years to
come*
12
-
freedom from want and freedom from fear are beyond evaluation.
A
So, also, do they know that $1 paid in taxes today accomplishes
as much as |2 paid twenty-five years from, now, for they learned from
the last war that financing charges can equal the original expenditure.
They know, too, that taxes constitute the only source of revenue of
our Government,that they afford the only means of paying eventually
for the tanks, the guns, the planes, the ships we may so desperately
need to preserve our civilization.
More than this —
they know that
if we are to preserve our American system, this bill for defense will
be paid 100 cents on the dollar, and the sooner, the cheaper.
They
know, too, that whatever amount we are now obliged to borrow we must
service through taxes.
A tax bill is not as inspiring as a battalion of marching men,
a squadrom of planes, or a column of tanks dashing across a field.
But it is just as vital to the defense of our nation in time of
our ideals when
emergency and equally
the emergency has ended.
people know.
These things
the American
Their cooperation and their response is not to be
doubted.
» W e must all make sacrifices, sacrifices
that will hurt.
But we may find solace in the realization that the
dollars that are taken novr out of a rising national income are far
more easily payable than the dollars that would have to be wrung
out of a dislocated post-defense economy.
The measures we take today
TpjjQietermine our way of life a decade from now.
If we take the
easy path and borrow instead of ta^ a less painful today w^jriQtum
-
11
-
payer can budget his resources and plan his spending -with a reasonable
degree of certainty*
But he is defenseless before the creeping
paralysis of inflation#
How can he budget his resources when he does
not know how much he must spend for eggs today, for eggs tomorrow,
for eggs the day after, for butter, for bread$#Tax sacrifices are
accompanied by an understanding of the contribution that is being
made, by a realization that one is doing one’s part in a bitter
struggle.
But the sacrifices of inflation are accompanied only by
the fear of uncertainty, by the helplessness and.hopelessness that
comes with trying to fight the invisible.
Knowing all this, how far
are we willing to go to prevent inflation?
How deeply shall we ask
the surgeon to cut to free us of this malignant growth?
Of equal
importance, how soon do we want the operation?
The willingness of the American people to submit to substantially
higher taxes is attested on all sides.
ago occurr
In this city
tmiumi
th-nnnar
first tax revolts yn this continent.
It was the result of the imposition of a tax for the benefit of others
upon a people denied representation.
The taxes which have been and
will be imposed upon the American people have been imposed and will
be voted by the duly elected representatives of the American people.
These taxes have been necessitated ‘
l policies
the
representatives of the American people have determined are essential
to
the defense of our Democracy.
The people of America know
you cannot place a price tag on the freedom of speech.
no sum is too great to pay for freedom of worship.
They know that
They know that
load to be borne by the structure constantly increases*
But even
under the best of circumstances
„r-r,-.^ a tax system
cmtw*
which produces billions of dollars in revenue t a n v
SsA nlUi
■q g a g n » In times of emergency the ^jMint^^n^ecomes even more
difficult# Jjifinifir;o
■
The job, like
all defense jobs, whether it be priorities, armaments, or taxation,
is to accomplish first things first*
We can only promise that in
imposing a heavy tax burden all that is possible within these limits
will be done to make its impact equitable.
^
There is another reason, however, which appeals to our fiscal
sanity to extend Federal taxes and to do it promptly.
We need not
look to -the future alone to justify this heavy burden* Compare the
burden of additional taxes with the burden of inflation.
In the
last two years the cost of living in America has risen
percent.
It has risen 7 percent since March of this year.
So far
CX/VA—
as the great proportion of American wage earners im concerned the
result is the same as though we had levied upon their wages a payroll
tax of 9 fe& tS S S S m & percent.
And yet the tremendous sum this
represents has vanished in the thin air of inflation; it has not
bought one plane, one rifle, or one bullet.
While penalizing the
wage earner cruelly it has not netted the Federal Treasury so much
Lfc/5>
ckA
as one red cent
Having Uncle Sam as a^partner in sharing the salary check or
the wage envelope is far better than having the spectre of inflation
as a guest at the dinner table.
Government and taxpayer*
Tax increases are manageable by both
Each can see ifhat is happening*
The tax-
- 9 the national income of France found i^s -way to that Republic’s
v u ^ c A A m
treasury* Eg: fho imi^jtriLLii,
rjMrind you that the best
estimtes available indicate that ksds
70 percent of the
national income of the people^of Germany is now being appropriated
to -f e y y n w - W V \ .\i
' « Q t h e Reich. These figures may shed some .l I ^ n ^ o r T l E e ^¿nituli^^'*',
^ -|
of our job^M»» a job which was defined by the PresidentWf^ptemBeF''"~*~~~:i
A
11,
1941, to be ”to turn the workshops of our industry into mighty
forges of war —
to outbuild the aggressors in every category of
modern arms”*
The national income of America at the present time is running
-apfer the rate of
billion dollars a year*
that fcgflaro 1
of. ~^T5o
It is »ot unlikely
it may reach the rate
billion dollars a year.
It would seem to be folly itself
were the Federal government not to avail itself of this opportunity
aa*mCAl
of niiiiTi**opi»i«*!is^ in taxes an increasing share of this huge national
income.
This may be the^igiFopportunity for years to come to put
our fiscal house in order*
Every dollar collected in taxes now leaves
us that much better off when we «■•iriace the period of readjustment
following this war*
While we are in a position to bear still heavier taxes, it is
undeniable that this heavy tax burden means individual sacrifices
and individual inequities.
Those of us who are living on fixed
incomes, for example, will be heavily hit by tax increases.
Many
of ys who now see in rising wages a chance to obtain some of the
things long denied must be disappointed.
The wealthy who now bear
high taxes will be called upon to shoulder even heavier loads.
Faugh
in the tax structure will become more and more oujpCable as the
^
- 8 -
■ulterior motive or unworthy purpose.
However, I feel obliged to state
to you and to the country that the information contained in that
Keitwwe is at great variance with all of the information at the dis
posal of the United States Treasury Department./¡^Perhaps one reason
for this difference is that the figures in the
appeared to include Social Security taxes in the United States while
excluding them andsimilar tax charges from the
Similari]
Similarly
_ ire for the British national income
36 billions of dollars rather than
-
.
estimate.
24 billions of dollars (which we
M
believe warnM * Tstf the correct figure) the estimates were thrown
out of focus.
The correction
in the figures
as a result of our information establishes that whereas the Chamber
l5
of Commerce states that the per capita tax in America m m $168 per
year as against a similar per capita tax paid in Great Britain of
13-65, this latter figure should be changed to $200 per year.
Similarly I wish to correct the statement about the proportion of
national income being collected in taxes in the two countries.
In
the current fiscal year approximately 22 percent of the national
income of the United States is being collected in taxes by national,
state and municipal governments.
In Great Britain approximately
40 percent of the national income is going this year for taxes.
tAASince tne per capita income
the United States is much higher than
Great Britain, the actual burden of current taxation upon the
British people is very much greater than that upon the American people.
Pwiw
11«¿raLuiffr'm 11r
that in the year of 1939 —
Si
luiin—
after Munich
j.
1. , _
point out to you
20 percent of
- 7 on the application of these principles.
Tf. jg pg g;y
-jour
we c;Vima.i^ pq.j
i
I might--raisind
¿fist April the Secretary of the Treasury, Henry Morgenthau, Jr.,
asked the Congress to provide us with tax revenues which would enable
us to defray two-thirds of our current expenditures out of tax collec■¿ions and only one-third out of borrowings •
The nation applauded this
statement of principle, and yet so rapidly did our defense expenditures
mount that even before that tax bill was enacted into law the total
yield of old taxes supplemented by those in the new bill fell short
of the two-thirds goal.
We are still aiming at that goal, for we all
want to pay as we go insofar as is practicable.
practicable"?
But how far is it
Surely there is a point beyond which we cannot go and
which we probably cannot safely approach.
That is the point where taxes
become so great that they kill individual initiative, they dull sharp
corporate management, they disrupt commerce, and eventually they kill
the goose that lays the golden egg.
It may be of some comfort for you
all to know that those men who are charged with formulating tax policies
are keenly aware of this factor.
t may be of less ^consolation for
you to hear that all are agreed we have not yet reached this^ point.
Recently the Chamber of Commerce of the United States pwfeiiSTwi
a ^ ^ ^ p S p o r t i n g to show t i t taxes are higher today in America
than they are in Great Britain, and that a larger proportion ‘of our
national income goes to the Federal Treasury in the form of taxes
than in the case of Great Britain.
purpose of
mHntmmr.
I do not know the motive or the
From my acquaintance with the officers ana
members of that association I am led to attribute to ri\'\
> 9 m n no
- 6 -
\
But, for the purposes of our discussion of the tax problem, the most
important figures I have given you are the receipts and expenditures
for the fiscal year 1942.
From these figures we learn that the largest
amount of revenue ever collected by any nation in the world in one year
still represents ao&gr
50 percent of our expenditures during that year.
I am sure that this must demonstrate very clearly to you that if we ¿Wfe
rest on our oars, if we are unwilling to extend our taxing powers, if
we are reluctant to syphon off from our record-breaking but still grow
ing national income even a larger share in the form of taxes, it will
be only a question of time until the national debt will get beyond all
reasonable bounds, it will be only a question of time until the worst
type of inflation will be upon us.
Once we have reached that point,
borrowings will be geometrically increased at ever-increasing rates
interest, and Government purchases will continue at ever—rising
prices.
We will then be in a situation from, which no amount of
sacrifice may be great enough to extricate us.
I believe I am safe in assuming that all of us are in accord on
three general principles:
1.
Tie should pay as we go insofar as practicable.
2.
Inflation, next to war and pestilence, is one of the worst
fates that can befall a nation.
3*
The American people are ready and willing and anxious to pay
every la.st penny necessary to defend America *and preserve
our way of life.
But even these three principles leave room for some discussion
and it might be well for us to see to what extent, if any, we disagree
- 5 -
194-0 to 12 billion 700 million in 1941 ^and we anticipate
to ta l expenditures in the current fisca l year of about 24/
o*e
billion dollars
mwI
amount equal to the to ta l invest
ment in American railways, and equal to the to ta l value of a ll
passenger automobiles produced in this country in the past 14
years.
Defense expenditures accounted for about 18 percent of
our 1940 expenditures.
The defense b ill in 1941 represented
almost one-half of our to tal expenditures, and in the current
fiscal year 18 billion of our to ta l expenditures of
P billion w ill be devoted for defense as compared with nondefense expenditures of 6^nciU.giiL lrn'l f billion dollars.
I think you w ill be interested to know that the net revenues
during the current fis c a l year almost double the non—
defense
expenditures for this same period.
\
I have before me a table showing for t^^years 194-0, &&& 1 9 4 1 0 ^ 4 \§|4j
the to ta l government receipts exclusive of Social Security taxes,
the to tal number of income tax return f ile r s , and to ta l expenditures
both for defense and non-defense purposes*
Fiscal
Year
Total Number
Income Tax
Return Filers
During Calendar
Year
(Thousands)
Total Net
Expenditures / /
Budget
Total
Defense
Non-Defense
Receipts
(Millions) (Millions) (Millions) (Millions)
1940
7,818
5,3S7
8,998
1,657
7,470
1941
Est* 15,160
7,607
12,710
6,080
6,694
194-2 E st. 22,108
Est J.1,998 Est. 24,581 Est.18,000 Est. 6,581
Excluding debt retirement
You might be interested to know that in 194.0, 7 million 800
uki&uJ* !
,,
thousand individuals filed income tax returns, — t m largest
*********^
U
up ...tp that tine. In 1 9 a we estimate we will
receive more than 15 million individual income tax returns and in
1.4-2 we expect tfei-e-figur^-to' exce®<^22 million.
From 194.0 to
1 9 a the to ta l net receipts rose from 5 billion 300 odd million to
7 billion 600 odd million.
We estimate that in the fiscal year of
194£ our to ta l net receipts will be 12 billion dollars.
During
these three years our total expenditures rose from about 9 billion
-
« «
mt n
M
-
be n e e d l e s s l y s a c r i f i c e d in the absence of th.
;
”
2
¿ s &
s r ^
r i * .
i - a s s r
°
i
^ ; i ^ i s a” ? i 1 s r ? r i i r ^ r a ^ r t ot s s r c i l H
m e r e l y b , t t e r - a . n - m y , l socij.pli.li.n“
* bI
,.
s
—
euQu ciiurti I
i?;?u l a r l y f i n e audience w i t h w h o m to
^^lls group includes some of o ur bes t
than that, the m e m b e r s of vnur A c u s t o
fllf
“ -.™
;£ s
a'
f “ -
±? 1; sseem
l -s
a
f e
*
J
d i s cuss taxsti-on. After
custonprq
M^-no •
m e r s .
More importsnt
S t o S S S * ^ d ^ o T ^ L vT L H
'
in n r o v i d L g
f o r i n v e n t o r be s ° k iSS f f01,War^
face
a n t l c i P ati* S Payrolls,
bSrobvIoL'Lftf o f X e
i^ture b ut do
so e a g ^ l f a n f ^ c f ' n t S f " ^
fu l u l l * *
^
f f 4
M
^
fl
faCe * *
To get dow n to e a rth on thi 5 sub j
ict and b e t t e r to prepare
ourselves for lo o k i n g f o r w a r d to the t;
!X pr o b l e m s of the next few
yoars it m i g h t be weil to review a few
statistics of the nation’s
recent fiscal activities.
I hav e before
and 194?
th»
-,me a table
taxes
tcxes,
s h o w ing for the fiscal years 19 40
e xpenditures b o t h f o r d e f e n s e a nd n o n - d e f e ™ Q
Fiscal
Yea r
Total N u m b e r
Income Tax
R e t u r n Filers
D u r i n g Cal end?
Y ear
(Thousands)
Ì940
1941
1942
1941
the t o t . ?
go ve rn m ent r e c e i p t s e x c l u s i v e o f S o c i a l «Security
tn e t o t a l number o f income t p *
p .-i
■■ l i
Total Ne t
Budget
R e c eipts
(Millions)
7,818
Est. 1 5 , 1 6 9
Est.
22,108
md
total
Expenditures 1 /
Defense
Non-Defense
(M i l l i o n s )
(M i l l i o n s ) (Millions]
5,387
8 , 998
.1,657
7ni
TyrrW
7,607
12,710
6-, 080
b
'G y m
11,998 Est.
1 / E x c l u d i n g d e b t r e t i rement
Total
*
purposes
24,581
E s t . 18,000 Est. 6,581 ■
- 3 -
present production may have to be doubled or tripled.
realities of the world of today cannot be overcome
The stark
merely
better-than-usual accomplishment.
I
have been asked to speak today on the place the Federal tax
program occupies in this def<
A
It seems to me that this is a particularly fine audience with
whom to discuss taxation.
our best customers.
After al^ this group includes some of
More important than that, the members of your
Association are seasoned veterans in the front-line trenches of
industrial endeavor who have had a great deal of practice in look
ing forward!.anticipating payrolls, in providing for inventories,
in seasonal changes.
in
Almost every phase of
your training has sharpened your foresight.
that from your
I strongly suspect
there have been eliminated some indi
viduals who preferred to dwell upon the past rather than to face
the unpleasant but obvious facts of the future.
I assume that
you who have weathered the storms of the past not only can face
the future but do so eagerly and expectantly.
To get down to earth on this subject and better to prepare
ourselves for looking forward to the tax problems of the next
few years it might be well to — j t“j----”ti
larft~
reviewing a
few statistics of the nation*s fiscal activities imn
-
2
-
But despite this lack of a large military class in America,
there is one field of warlike endeavor in which for at least a
generation we have believed ourselves to be outstanding, and I
trust that this assumed superiority is well founded.
During
1917 and 1918 we demonstrated to the world a greater capacity
for mass production of the tools of war than had ever before been
known.
iS8j3&ate&l3kjflMa€»»€Pfeg&%>e4"4&"eot&^
impossible
"Q^^jILaA.
tim^ -S9^i.ed»A^a. -gor ouch a long timo we have so loudly and so
frequently boasted of our industrial superiority that we have taken
for granted something which may not actually exist today or cannot
be achieved tomorrow without tremendous effort and sacrifice.
Recently we have read in the newspapers evidence of disappointment
and growing impatience over production figures.
I do not know
whether this criticism is justified or whether it springs from the
laudable desire of a people to see its own progress accelerated^
beyond reason.
God grant that it may be the latter, for upon you
men and upon your associates well may rest the outcome of the defense
of our country.
The lives of thousands of brave
I $L
young! American men
{
may be needlessly sacrificed in the absence of the almost fantastic
amounts of materiel you are being called upon to produce.
From ny
knowledge of your records and my acquaintance with your members I
feel sure that the manufacturers of America will not fail their native
land.
But if such a failure is to be avoided, it is evident that
, 'Solon L. Sullivan, Assistant Secretary of
f
the Treasury at the Annual Meeting of the
dissociated Industries of Massachusetts,"
Bostdn, -Massachusetts, October 23, 1941.
/
l^;"^y^sjdent, Ladies and Gentlemen*.........
.
.,,„>y
I am indeed happy to have this opportunity of meeting today
with the members of ^^Associated Industries of Massachusetts,
The members of your group have played a pre-eminent role in the
economic life of New England and America.
Today this group is
playing a truly indispensable role in helping to rearm America
against the ever-rising threats to our civilization from across
the seas.
I think that the average American citizen is apt to forget
the importance of the American industrialist in the general plan
for the defense of our shores.
America is not a warlike nation,
(V\U-\TfYK\rn<i
and we have no wnliffcar^traditions comparable to those of other
great powers.
We have never fought a war with professional soldiers.
Ever since the Revolution we have maintained a professional navy
which today is rapidly approaching a size and competency that will
make it adequate for any task it can reasonably be asked to perform.
But today, as in every war since and including the Revolution, we
have no large professional army.
Rather do we rely upon the rapidly-
trained amateur troops who are recruited from the youth of the nation,
— young men who are asked to leave their homes, their factories,
their farms and their offices but who enter the army only temporarily
and in the hope that they may quickly complete the unpleasant task
at hand and then return to their former peace-time pursuits.
i
i,
^ P X fX à
C & v y A v ü ^ ù Jl
JtA * > ~ ¿ U i$ tú
o à r
y ^ ~
(O
t C
- fr a J &
o
y ^ -'
r c J ¿ j~ c Á ~ /
/^ * 0
¿h ^ Á
a
JI
m
É íJ
íí
itiiô • bitter fatui*« ©f m&mwm debt#, heavy internet burdeny and
3©« national income. But the «acrifieee of » heavier tax bordan today w*n\
æ«a a better life in the future. Throe eacrificea eill be a
priee to pay for the saintenance of our m y of life in the year« to
•* Ul
iv m ú m
fro m m a t
tod freedom i r m
fatr m m bsyond «rainatien*
So, «1*0, do they taw* that IX paid in « a m today aeeoapliehed
aa m o b a* $2 paid twenty-five yaara fica no*, for tbay learned fron
«ha Xaat war that financing ohargea can equal «ha original expenditure.
taw*» «0 0 » that tamo conatitota «ho only aouroa of r m m « *f
oar Qovarr<nant,that tbay afford «ho only roana of paying evantually
far th# tanka, tha gana, «ho flanea, tha ahipa wa nay ao desperately
nood «o preserva oar olvillaatlon.
Mora «haa «bla —
If *• ara «o praaorv* oar tawrloon eyetan, this M U
«hay taw* tha«
for defense *1U
bo paid 100 mate on «ha dollar, and tha aoonar, tha ebaapar.
Ihay
taww, too, that whatever amont wa ara now obliged to borrow wa *aat
tarviso through « a m ,
d «a* M O I la not aa inspiring aa a battalion of aarohing aaa,
a aquadroa of planai, or a ooXaaa of tanka daahing aoroaa a field.
Bo« 1« ia Juat aa vital to tha dafaaae of our nation la tine of
eaorgency and equally vl*aX to tha perpetration of oar ideala whan
the aaserganoy haw andad.
people too*.
These thingajgfeg^tawa» the
Thair oooparation and «hair reaponaa la not to be
doubtod.
InsÜMfcii
>w
mit all sake sacrifices, sacrifice«
t^at *iU hart. But *o aay find sOlaea ia the raaliaatien that tha
dollars that arsitale*» m m sat of m rising rations! incoino mm far
m m «pally payable than «la dollar» that would hmm to bo m a g
out of a dislocated post-defim»« «conosgr» tha masaras ss taka today
payer con budget hi» n m v n i and pia» bla «pendini ’■Itti.a reaeonobl#
degree of oiPtalA^r* Bei Imi in defeneelaee battete ite» ereapliig
paralyele of infinti©»* Bau eia 1» budget
reeouroea «few ^ dot*
noi kmw lami auoh be «uat epend iter egge todey, for egge tornar*©*,
for tgf» ili« day afta*, for buttar, ter bromi. TOx sacrifico» aro
as under»tondini of thè ooatribution thoi la being
nodo, by a realiaetion thot one la éoim ©a*1«
i» a bitter
etruggle. Bai tho oaorlfiooo of inflation a** eccoapenled ©nly Ir
tbe fear ©f wicertainty, by th© heXpleeaneea aiid^ralaaaiiaaa that
ornata eith trying to fight thè IfnrìaibXe. KnmriLng all thla, ho* far
ave *e eilling t© go t© preveat taflatioaf He* deeply abolì et o*k
thè aurgeeo to cut to free m of thia nalignant growth? Of ©qual
importane©, be* aooe do et aaat thè operati©»?
tbe irtlltngneea of thè Aaertea» poople to aubadi t© «ubetaniially
hlgher tane* la. atteeted on all aidea* la. thla city aere thaa a
fr
/
eentury and a balf ago oeoerv»^ tlm firai tax veeoltycm tbia contine«!*
It eoa thè retali of thè iapoeiiion of a tax for tho benefit of otbev«
open a poople danled repreeentatl©*** tbe ta»e ebleb bave borni and
uill be impoaod upon thè American people bara bea» iapoaed and *111
be Yoted by tbe doly eleoted repreeentatl*©* of tfeo American poople.
Theee taxoa bove been naoeaaltatad beaaamaW^policle* XNt thè
repreeentotivee of tho American poople ho*o deteiedned ara eaaential
to iMfetf thè defenae of ©ur Beaooraey. tba poople of teerieo kno*
yen oonnot piece a prioe tog on tho freadee of apoooh* tbey kno* th»t
no oca io too groat to pay for freedoa of eorablp* tbey kno* thot
*
10
load t© Imi barn» by the structure oonet&ntly Ineraacea* But «n&
unte ih» b»»t af aireunatanaaa a»
«hleh prodeaaa billion» of dollar» ln reveim»
of ©aorrencv the
beooœs «von aura
«11 defenee job», whether it b» priori Üee, a m m a n t a , or taxation,
1» to accotaplieh fixai thlng» Urti*
I
Va «an only proni»« ttiat la
« haavy tax burdan «^t Huit la po»»ible «ithtn t h m .liait»
«111 ba doua ta aak* lia liapaet aqeitable.
Tbara la anothar reaeoa, benaver, which appeal» to our fiscal
«anlty to entend Federai taxa» aad to de it prosç>tly*
Wa naad aat
leale to thè futura alena te juetify thte heavy berte* Compare the
barite of additlonal taxa# wlth the be r t e af inflation*
ïn the
laat tee year» thè eoat of Urini In iaarlea ha» rleen 9 and mùmèaié
percent*
It ha» rla»n ? percent elnoe March of thla year*
Se far
a» the araat proporti on ef American nage camere -te eancernad the
remili la the m m
aa though aa had levled upon thelr «egea a payrell
tax of 9 «nteimÌnidÌ parami*
And yai the trenendou» m m thla
repreeeni# ha» vanlahad in the thin air af inflation! It ha» net
beught m m plane, eue rifle, or ont ballet*
While penaliaing the
«âge ea m e r cruelly it hae net xiettad thè Federai Treaaury ao »neh
Having Beala San a» a
tha «âge envelop» la far batter than having tha apaatra af inflation
aa a gueat at tha dlnner tabla* liât Ineraaaaa ara naaagaabla by boti
Government and taxpayer. Bach aan ma üfaat la happening* The ta&*
ih* rational incora of Frano* found ita way ta that Espabilo*«
treasury* % tha aara token, I wish ta remind you that the beet
estimates available Indicate that .SwéeeediliraM^ 70 percent of tbt
national tarara of the people of Oernany i* now belra appropriated
»prlated
magnitude 0
a Job which was defined by the Preeident m
ef our job,-—
Pepi«ber
119 1941, to be •to tarn the wricahep« of oar industry late nighty
forge« of ear —
to outbuild the aggressors in every category of
modern arse«*
the rational incora of kmvlea at tèa present tira la naming
at the rate of
Milica dollar« a year.
1% la not unlikely
that bafore the end of the next «alendar year it nay reach the rate
of
billion dollar« a year.
It nocid m m
to be folly iteelf
rare the Federal government not to arali itralf of thl» opportunity
M O b~t û j *l\* \
or nfinfianppiaraaiiailn taxes an increasing «bara of thle huge ratloral
incora.
Tbl«
ray be the'‘^rareipportanlty for year» to era» to pat
our fleoal honra la order.
Every dollar collected la taras «wir leaves
tm that each better off when ra » r a i e r a the period of readjustment
following thle ear.
While we are in a position to bear «till heavier taxe«, it 1«
undeniable that thle heavy tax bardan aaaaa individual sacrifice«
and individual Inequities* Thera of ra who are living ra fixed
Ipoerae, for example, will be heavily bit by tax laeraaera. Ifeny
of ra who now rae in rising «agra a chanoe to obtain eora of the
things long denied arat be disappointed. *he wealthy who now bear
hi^ trae» will be called opra to shoulder even heavier loads*
tha tax structure will becera rare and rare
tabla as the
ulterior »otiv» or «iwnrttgr purpo*«. Hoiwrver, X f««l obliged io «tot«
to you and te the country that th« infonaation contained la that
rulMta 1» ai pati variane« «lth all of ih« inforaation ai th« dia»
powkl of ih« United Stata» Treaaury Dopartnont.^Perhapa «sa r*a«on
f»r tfci* differenti» la that thè figure« la thè iiìniiiTiurn
in
appoarod te Include Sodai Seeurlty tezee la thè United State« «hll«
excludlng thè® and aiadUar tax charge» freni thè
Htìati.
mMimrty, tp^aaliig A» a figure far th« Britiah national Ineo®«
% bullona of dollar« rather than 24 blXllons of dollari (whioh m
bellave
tha eorraot figaro} th« «atinaie» «or» throan
oui of foeua«
Th« correction
ii«i»«ohii^tn ih« figure»
a» a resoli «f our lufomailon oatabliahea ihaj ehereaa ih« Chanber
of G o m m
aiate» that thè per capita tax in America ««a Ü 4 8 por
f*** aa agatnat a stellar par capita tax pald in arcai tritala of
tfela lattar figure ahould he ehanged io 1200 por yoar.
Similari^ X »deh io correct thè statoaoat about tha proportion of
national lacerne beìng eelleeted la taxa» la tho tate countrieag In
tho curami ficcai year approxteately 22 parami of thè national
ineoee di th« United fiat«« 1« beiag eollected la taxa» by national,
aiata and municipal governa*«!».
40 perçant of
In Greti fintala approadnatoly
national Incocw la golng thla yoar for taxes,
ù
Sim» thè per capita lneoaa «T thè United State« la mv>h bigbar th»
la Oroat Urliate, thè actual burden of current taxation open thè
Britlah peOple la very auch grattar thaa that upem thè Aaorlean people.
mmré,
that la thè year of 1939 —
after Munich —
4 polat cui to yeu
v»
ju».
laSTrt», 70 perçant of
the application of these principle««
"Il 1» '"«eejf6*4*1'.sty .„that
i April the Secretary of the Treasury, Henry Morgenthau,
**ked the Congre«« to protide ne with tax reteme« which w o l d enable
ne to «hifray taw-third« of ear current expenditure« out of tax collec
tion» and only one-third cut of borrowing» • the nation applauded this
statement of principle, and yet «e rapidly did oar defense expenditures
meant that even before that tax bill *ae enact#* late lam the total
yield of old taxes supplemented by those la the new b i n f e n short
of the teo-thirde goal.
We are still simlng at that goal, fer we all
want to pay as we go insofar ae is practicable.
"practicable*^
Bat how far 1« It
Surely there Is a point beyond which we cannot go end
which we probably cannot safely approach,
that 1« the peint where tax«
beeome so great that they kill individual initiative, they d u n «harp
corporate management, thagr disrupt commerce, and eventually they kill
the goose that lays the golden egg«
It may be ef some comfort for yea
a n to know that those men who are charged with formulating tax polieisi
are keenly aware ef this factor«
And It may be of Is
ition for
you to hear that a n are agreed we have net yet reached thla point«
a
to show tbat\i
/V
than they are in Great Britain, and that a larger proportion of our
national income goes to the Federal Treasury in the form of taxes
t&aa in the case ef Great Britain«
1 do act knew the motive or the
purpose of ^ g f release » -From my acquaintance with the offleers and
» 4 »
V
l
m t , fo r
m
purpoees of o w discussion of the tax probis», ths most
importent figure* î bave giwen jtm *jm the reoeipt* and expendltures
far the fiscal year 1942*
Froa these figura» ira l a a m tlmi tha largsit
aw«mt af revenue ever colleeted by any nation in tha world 1» ont y m
»U X L représenta only 50 perçant of oui* expenditures during that y«*r.
I an aura that thi* muet damnatrate very elearly to you that if we
raat on our oars, 11 m ara unwilling to «xtend our taxlng powers, if
aa ara reluetant to ayphon off fro m our racord-braaking but still grosl»i national incoae aven a larger »hart in tha fora of taxes, it will
be only a question of tisse until the national debt will gai beyond aU
reosonabl* bounds, it will be only a question of U m until the eorst
type of inflation will be upon ue*
Once we baye reaehed that point,
borrowiï^;» will be geometrlcally inorsased at ever-increasing ratas
of interest, and Government purohases will continue at «ver-rising
prices• le will thon be in a situation fro m whioh no aisouni of
saerlfîoe ®sy be great enough to extrlcate us«
1 belleva
1 a®
aafe in aasuastng that ail of ua are in accord
m
three general prlneipleat
!• w# ehould pay as we go insofar as practicable*
a.
Inflation* muet to war and pestilence, is ont of the worst
fates that can befall a nation*
3*
îhe American people are reedy and willing and anxious t© pay
every last penn^ neoessary to dsfend America and préservé
our way of life*
But aven thsee three prlnciples leave room for sone discussion
and ît n&ght be well for us to eee to abat sxtent, if ai^, we disifrs*
5
lu 1910 to 12 bill!cm TO) sillies iM 1941 m û we anticipate
total expenditure» la ti# currant fi»cal year of »boot 24 and
ons-h*lr M U l o n « o n « * —
caw
* - « ■ * •*■»*•*■***
tewot-
meat la àsari©«® railway», Mid equal to the total value of all
pacatnger »etewsbile« producá Is this country Is the pest 14
year»*.
Bafea»» expandituroe accounted for about li percent of
our If4© expendítures*
the defasse M i l in 1941 represented
alnest one-half of ear total expenditure», and in. the current
fiscal year li Millon of ear total expenditures of 24 and onehalf Milieu will be devoted for defeote m compared with nondefense expenditure» of é m ê one-half billion dollar»*
I think y m will be interested to knee that the net reverme»
during the current fiscal year alsoet double the non-defence
expenditure# for tfei# §m m period*
•SgTIfjsg
________________________________
:*:i©5
;_àpj£.-•4-/. __ ________________________________
W m MM--l^i
m
SltlMi
M
ÉM' ■-.,\:
r'"
’
P
,:J.ì*
-H
■***> 4 **
0
1 turni baYer® m
tabi« «fecw&ng far
A"
HMPTB
P PPL0
1940,jìh & mx<
J
g
|
il»' total f a m m m m t r*edpt* «xcliidw of Social Steuritgr te®«»
t e total w rnfam of im m m t e n t m
beili fer è m im m and
Ficcai
T#ar
filar®» «tut total «xpamditure*
p m p m *9 *
fatai tebar
loco» t e
Muffii Filar®
fatai fiat
Kxpandlteaa Jj
Badgat
Total.
late»
Son~&tl!*ia»
ftraipt*
ttortst Oateéar
(l&lllan*) (1*11lieti») (Milli«®) (MUlice*)
Y«ar
{ib^au&d®}
1940
7,818
5,3F7
8,99i
1,657
7,470
,ito
7,607
12,710
é tm o
6,074
1941
m .
1942
Hat, 22,108
15
Kai«Utt90 Sai»24,531
Fst*ia,000 EH, 6,5*1
1 / Fxcladtag tabi rttlvtMst
Tuo dgfet b« tisteaate te know timi in 1940» ? «lllio» ®00
tbeueaui individuala filad incesa» t e retarne, —
1Tm&mv
nm r
fil©d u p
r o m i t o 1tara
io timi tira»
t e largati
la 1941 ve cetlaat® m d i i
i t e 15 »il’lon Individuai inno» t e rotea® and ir
1942 va «xjnlei ibi» figura io «xoaad 22 salili«*
fresi 1940 io
1941 t e total nei m t i p U rea# ftt» 5 billlon 300 odd »1111« to
7 blllior éOO odd d U i c n *
la «aiiisat# timi In t e fiacal ffear of
1942 cmr total noi recdpia d i i ho 12 M l l t a dollars.
Buring
t e a ® %hm® yrnmm m r total. arpandittura» rea® àrea aboui f billien
-- .V - !s&
,-é - 4
-
* ..«^ ^,*»aai
v%/tì èmwmt^séM m
mm
jJ «#
present production nay have t© fee doubled
or tripled,
The start?
realities of the world ©f today earnsi bo ceereeM ¿y merely
trttav*tfe4bHMmal a ooompllshsient»
I h m I » « aekeé to speak today m tl» place the fbd«ral tax
program occupi®» in téla defense effort**
m m m t© m that this io » partimlarly fino «©diane© with
mhmto disease
w
taxation* After alluma group include» a©» ©f
boat ©©»toners* Hore important than that, the swnsbors of year
Associati©n aro «monad tot©rana in the front-line tranches of
industrial endeavor who M m had a groat deal of practice in lookiftf forward* anticipating payrolls, in providing for inventories,
Aft*
in ìm iB À m sss^ ^ m ssà » ^ . m m o m l ©haute«»
every p fm m ©f
k lw m t
ytmr training ha« sharpened yo«r foresight*
1 strongly suspect
that from yomr -a^ào*»h%T there have been ellisdoeted »©me Indi
viduals who preferred to dwell,
npm
the past rather than to face
the unpleasant hut obvious ¿feet* of the fhture*
jm
I m m m that
who have weathered the stores of the past not only ©an face
the fhtnr» hut do so eagerly and expectantly*
to get down to earth m this subject and better to prepare
ourselves for looking forward to the tax problems of the next
¿flMawwKHKwrem*]^^_
few years It might be well
,)>rnnwi|_
taMafea^i^Tri-ìrnnerrwfferìfeeneM^^ revlawi^pin
few statistics of the nation *a fiscal activities*tn thrlnnt
h
À
B#t ii«#pii# Ut!# lato ©f a 1#rg» ttiìitary el»#a in ¿atri#*,
tfeere ia <k w flald cf Trmrlik» ©ndaavor la tolto for al l«##t a
gaoaratior w# h m
trust tfeat tfeis
mammà #uparlorltgr
191? m è 1918 we
far M 8
t a ,
beliatad curativa« to b# outatandtog, and I
1« salì fotmdad*
deamnstratad t© ih« worid
#
Buring
greatar eapacity
prototot©** ©f to# tool# ©f arar than had arar hafora
Throufhout ih#
1920*«
record® y m aitar yaar*
mir industriai capaciti#«
fhrougti ih#
t^poatedly toficm»tr«i#d it ©¡©uld
ito# atoadulaa*
1930**
é® iapoasibl#
iMmtrl&l
mé» nm
Ausarlo«© indiaste
job© «n iapoaaibla
Far auto a long ila# «a bava a© laudi/
fFaqaaatljr basata© of ©ur
bmn
superiority tosi
mé
so
m team Uken
far grafita© «©«ethi©# wtó.ffe uwty noi aetaslly «siisi today or ctn?set
be atoiavad tosorrov «ittKmt tvaaMHRd©## affari «and «aerifi##«
&©©«ntly ng« team r m è to to# naw*papera «ridane# ©f dlsappototoant
©nd
gvmtm
topatianca ©ver prodnotlon figura«*
1 d© noi lencar
toatfcar tota oriti©! sa 1# justified or wfeatoar it sprin$» trm to#
laudatola destra ©f a paopla t© #ea
beyond rea®«®*
m h
it# <sm progress
aeealeratad
0©d frani that it aiay he thè lattar, for ©pori yes
and rnpen your associata# sali asay resi thè otite©*# of ih« toltosi
of ©ur ©oaatiy«
fio Ito## of thouaand# of brava y©un§ Antriesn «eis
aay be n m è lm t s ly «aerifieed to thè m ìm m m o t to# alaoat fantastic
awmirt# of material
pm ara
baine calla© ©poti t© produca*
?mm «jr
kxteirladga of ym*r record# and
scqeatnUnc# «rito ycmr sambars I
faci mira to si ih#
of /aaarica «ili noi fall toair natlw
lané*
8ut i f auto a fatto re 1« to bs aroidad, it i# avida»! toat
«¿ItihKk Ik# Sullinm , is s i ©tant Secretary of
the Treasury *t the Annual Heating of ti»
Aoaoolfttftd Industriai of iteeea®hii®«tt®9
RootoWf Itaaaachueett®, October 23, 1941,
1ÖP* Fre®id®nt, Lodi«® «acid Gentlemen*
I
m
indeed happy to haw thia opportunity of
m e tin g
today
with the member» of i$?é Aeeee «ted Industri«® of keetaeteeaeit«.
Ï*» a m lm m of your g m $ h a w played a preniminent role in tbs
«w*stt»ie I I É of Wo« WKttlwd « á Aw®rie«#
today thie group 1«
playing a truly indispensable rol« in helping to w m m Avorio®
«feinet the ewr-rlair*g throat® to our elvUisatlon from aero««
tb® m m *
l
think that tb® a m r& m American cltiaen 1« apt to forgot
tbs importar»« of tb® America» in d u strialist in tb« g e m m i p lm
to r
ib»
im t m m
of our shores,
America i* not & warlike nation,
and m hmm m m ilit a r y tradition« ©omparabia to those of other
fra a t pernera*
«• haw aerar fought a war with prefeesional soldiers.
Iw r aim® th® Revolution w® haw eaimtalned a profetai,©nal navy
which today ia rapidly approaching a aia« and ©appetency tb »t will
make i t adacquat« for ary taek i t «an reasonably be asked to perform.
But today, a® in every wer eine« and Including the Revolution, m
h em m
large profeesional an y*
Rather do we rely upon the rapidly-
trained «atetar troop» who are recruited fro® th# youth of the natleaÿ
— young man who are naked to leave th e ir ho®««, th eir facto ries,
the i r Itene m ê th eir office# but who enter the army only temporarily
mâ in th# hope th at they
may
quickly complete the txnpleeeant teak
a t band mi then return to th eir former peace-time pursuit».
TREASURY DEPARTMENT
W as h in gt o n
(The f o l l o w i n g a d d r e s s by John L. S u l l i v a n , A s s i s t a n t
S e c r e t a r y of the T r e a s u r y , b e f o r e the annual meeting
o f t h e A s s o c i a t e d I n d u s t r i e s of M a s s a c h u s e t t s i n
B o s t o n i s s c h e d u l e d f o r d e l i v e r y a t 1 1 : 1 5 o Tc l o c k
E a s t e r n S t a n d a r d Time, Thurs day m o r n i n g , O c to b e r 2 3 ,
1 9 4 1 , and i s f o r r e l e a s e upon d e l i v e r y a t t h a t t i m e . )
I am in de ed happy t o have t h i s o p p o r t u n i t y o f m e e t i n g t o d a y w i t h !
t h e members o f t h e A s s o c i a t e d I n d u s t r i e s o f M a s s a c h u s e t t s .
The
members o f T^our grou p have p l a y e d a p r e - e m i n e n t r o l e i n th e economic
l i f e o f New E n g l a n d and A m e r i c a .
Today t h i s gr ou p i s p l a y i n g a
t r u l y i n d i s p e n s a b l e r o l e i n h e l p i n g t o r e a r m Am erica a g a i n s t t h e e v e r r i s i n g t h r e a t s t o our c i v i l i z a t i o n f r o m a c r o s s t h e s e a s .
I t h i n k t h a t t h e a v e r a g e A m e ri ca n c i t i z e n i s a p t t o f o r g e t t h e
i m p o r t a n c e o f t h e A m e ri c a n i n d u s t r i a l i s t i n t h e g e n e r a l p l a n f o r t h e
d e f e n s e o f our s h o r e s .
Am erica i s n o t a w a r l i k e n a t i o n , and we have
no m i l i t a r i s t i c t r a d i t i o n s c o m p a r a b l e t o t h o s e o f o t h e r g r e a t p o w e r s .
We have n e v e r f o u g h t a war w i t h p r o f e s s i o n a l s o l d i e r s .
Ever since
t h e R e v o l u t i o n we have m a i n t a i n e d a p r o f e s s i o n a l navy which t o d a y
i s r a p i d l y a p p r o a c h i n g a s i z e and c om pe te n cy t h a t w i l l make i t
a d e q u a t e f o r any t a s k i t c a n r e a s o n a b l y be a s k ed t o p e r f o r m .
But
t o d a y , a s i n e v e r y war s i n c e and i n c l u d i n g t h e R e v o l u t i o n , we have
no l a r g e p r o f e s s i o n a l army.
R a t h e r do we r e l y upon t h e r a p i d l y t r a i n e d am at eur t r o o p s who a r e r e c r u i t e d fr o m t h e y o u t h o f t h e n a t i o n ,
— young men who a r e as ke d t o l e a v e t h e i r homes, t h e i r f a c t o r i e s ,
t h e i r f ar m s and t h e i r o f f i c e s but who e n t e r t h e army o n l y t e m p o r a r i l y
and i n t h e hope t h a t t h e y may q u i c k l y c o m p l e t e t h e u n p l e a s a n t t a s k
a t hand and t h e n r e t u r n t o t h e i r f o r m e r p e a c e - t i m e p u r s u i t s .
But d e s p i t e t h i s l a c k o f a l a r g e m i l i t a r y c l a s s i n A m e r i c a , ^t h e r e
i s one f i e l d o f w a r l i k e e n d e a v o r i n wh ich f o r a t l e a s t a g e n e r a t i o n
we have b e l i e v e d o u r s e l v e s t o be o u t s t a n d i n g , and I t r u s t t h a t t h i s
assumed s u p e r i o r i t y i s w e l l f o u n d e d .
Du ri ng 1 9 1 7 and 1 9 1 8 w e #
d e m o n s t r a t e d t o t h e world a g r e a t e r c a p a c i t y f o r mass p r o d u c t i o n o f
t h e t o o l s o f war t h a n had e v e r b e f o r e been known.
Ev^r s i n c e t h e n
we have so l o u d l y and so f r e q u e n t l y b o a s t e d o f our i n d u s t r i a l s u p e r i
o r i t y t h a t we have t a k e n f o r g r a n t e d s o m e th i n g wh ich may n o t a c t u a l l y
e x i s t t o d a y or c a n n o t be a c h i e v e d to morrow w i t h o u t tre me nd ou s e f f o r t
and s a c r i f i c e .
R e c e n t l y we have r e a d i n t h e new spa per s e v i d e n c e o f ^ d i s a p p o i n t
ment and gr ow ing i m p a t i e n c e o v e r p r o d u c t i o n f i g u r e s . ^I do n o t know
w h e t h e r t h i s c r i t i c i s m i s j u s t i f i e d o r w h e th e r i t s p r i n g s f ro m t h e
l a u d a b l e d e s i r e o f a p e o p l e t o s e e i t s own p r o g r e s s a c c e l e r a t e d
beyond r e a s o n .
God g r a n t t h a t i t may be t h e l a t t e r , f o r upon you
men and upon y o u r a s s o c i a t e s w e l l may r e s t t h e outcome o f t h e
d e f e n s e o f our c o u n t r y .
The l i v e s o f t h o u s a n d s o f b r a v e young
2 8-16
Ame ri can men may be n e e d l e s s l y s a c r i f i c e d i n t h e a b s e n c e o f th e
a l m o s t f a n t a s t i c amounts o f m a t e r i e l you a r e b e i n g c a l l e d upon t o
produce*
From my knowledge o f y o u r r e c o r d s and my a c q u a i n t a n c e
w i t h yo u r members I f e e l s u r e t h a t t h e m a n u f a c t u r e r s o f America w i l l
n o t f a i l t h e i r n a t i v e land*
But i f s u c h a f a i l u r e i s t o be a v o i d e d ,
i t i s e v i d e n t t h a t p r e s e n t p r o d u c t i o n may have t o be doubled o r
tripled.*
The s t a r k r e a l i t i e s o f t h e world o f t o d a y c a n n o t be o v e r
come by m e r e l y b e t t e r - t h a n - u s u a l a c c o m p l i s h m e n t .
I have be en asked t o sp eak t o d a y on t h e p l a c e t h e F e d e r a l t a x
prog ra m o c c u p i e s i n t h i s d e f e n s e e f f o r t .
I t seems t o me t h a t t h i s i s
a p a r t i c u l a r l y f i n e a u d i e n c e w i t h whom t o d i s c u s s t a x a t i o n .
A fter
a l l , t h i s - g r o u p i n c l u d e s some o f our b e s t c u s t o m e r s .
More i m p o r t a n t
t h a n t h a t , t h e members o f yo u r A s s o c i a t i o n a r e s easone d v e t e r a n s
i n t h e f r o n t - l i n e t r e n c h e s o f i n d u s t r i a l e n d eavo r who have had a
g r e a t d e a l of p r a c t i c e in looking forw ard , a n t i c i p a t i n g p a y r o l l s ,
in p ro v id in g f o r i n v e n t o r i e s , in f o r e c a s t i n g s e a s o n a l changes*
Almost e v e r y p h ase o f y o u r t r a i n i n g ha s s h a r p e n e d y o u r f o r e s i g h t .
I s t r o n g l y s u s p e c t t h a t f r o m y o u r r a n k s t h e r e hove be en e l i m i n a t e d
some i n d i v i d u a l s who p r e f e r r e d t o d w e l l upon t h e p a s t r a t h e r t h a n t o
f a c e t h e u n p l e a s a n t but ob v io u s f a c t s o f t h e f u t u r e .
I assume t h a t
you who have w e a t h e r e d t h e s t o r m s o f t h e p a s t n o t o n ly c a n f a c e t h e
f u t u r e b u t do so e a g e r l y and e x p e c t a n t l y .
To g e t down t o e a r t h on t h i s s u b j e c t and b e t t e r t o p r e p a r e
o u r s e l v e s f o r l o o k i n g f o r w a r d t o t h e t a x problems o f t h e n e x t few
y e a r s i t m igh t be w e l l t o r e v i e w a few s t a t i s t i c s o f t h e n a t i o n 1s
recent f i s c a l a c t i v i t i e s .
I have b e f o r e me a t a b l e showing f o r t h e f i s c a l y e a r s . 194-0, 194-1
and 194-2, t h e t o t a l government r e c e i p t s e x c l u s i v e o f S o c i a l S e c u r i t y
t a x e s , t h e t o t a l number o f income t a x r e t u r n f i l e r s , and t o t a l
e x p e n d i t u r e s b o t h f o r d e f e n s e and n o n - d e f e n s e p u r p o s e s .
Fiscal
Year-
T o t a l number
Income Tax
Return F i l e r s
During C a l e n d a r
Year
( Thousands)
1940
T otal net
Budget
R eceipts
(M illions)
T otal
Expenditures 1 /
■
’ De fe nse Non-Defense
(M illions)
(M illions)
(M illions
7 ,8 1 8
5,,387
8 ,9 9 8
1,6 5 7
7,311
1 2 ,7 1 0
6,080
6 ,6 3 0
1941
E stf
15,160
7,607
1942
E st.
22,108
Est,.. 1 1 , 9 9 8
1 / E x c l u d i n g d eb t r e t i r e m e n t
E s t . 2 1 , 5 8 1 E s t . 1 8 , 0 0 0 :E s t .
6,581
Y o u m i g h t be i n t e rested to k n o w that in 1940, 7 m i l l i o n 800
thousand individuals filed income tax returns, w i t h i n 100,000 of the
l a r gest n u m b e r ever filed up to that time« In 1941 we estimate we
will receive more than 15 m i l l i o n individual income tax returns and
in 1942 we expect returns from m o r e than 22 m i l l i o n individuals#
P r o m 1940 to 1941 the total ne t receipts rose f r o m 5 b i l l i o n 300
odd m i l l i o n to 7 b i l l i o n 600 odd million.
We estimate that in the
fiscal year of 1942 our total n e t receipts will be 12 b i l l i o n dollars*
these three years our total e xpenditures rose f rom a.bout 9
b i l l i o n in 1940 to 12 b i l l i o n 700 m i l l i o n in 1941, and we anticipate
total expenditures in the current fiscal year of about 24^- b i l l i o n
dollars — an amount equal to the total inve s t m e n t in A m e r i c a n r a i l
ways, and^equal to the total v a l u e of all p a s s e n g e r automobiles
p r o d u c e d in this country in the past 14 years.
D e f e n s e expenditures j
acc o u n t e d for about 18 p e r cent of our 1940 expenditures#
The defense
b i H .in 1941 repr e s e n t e d almost o n e - h a l f of our total expenditures,
and in the current fiscal y e a r 18 b i l l i o n of our total expenditures
of 24-2 b i l l i o n will be d e v o t e d for defense as compared w i t h n o n
defense e xpenditures of 6i b i l l i o n dollars#
I think you will be i n t e rested to kno w that the n et revenues
during^the current fiscal year almost double the n o n - d e f e n s e
e xpenditures for this same period#
But, for the p u r poses of our dis^
cussion of the tax problem, the m o s t important figures I have g i v e n I'
you are the receipts and expenditures for the fiscal yea r 1942.
F r o m these figures we l e arn that the l a r gest amount of revenue ever
collected by any n a t i o n in the w o r l d in one yea.r still represents
less than 5 0^percent of our expenditures duri n g that year#
I am
sure that this must d e m o n s t r a t e very clearly to y o u that if we are
to rest on our oars, if we are u n w i l l i n g to extend our taxing p o w e r s .
if we ere reluctant to syphon off f r o m our r e c o r d - b r e a k i n g b ut stillg r o w i n g na t i o n a l income even a l a r g e r share in the f o r m of taxes,
it will be onl y a q u e stion of time until the national debt will get
beyond all reasonable bounds, it will be onl y a qu e s t i o n of time until
the w o rst type of i n f lation will be u p o n us.
Once we have reached
that point, b o r r owings will be g e o m e t r i c a l l y increased at everincreasing rates of interest, and G o v e r n m e n t p u r c hases will continue
at e v e r - r i s i n g ^ p r i c e s . Vie w i l l then be in a situation f r o m w h i c h no
amount of sacrifice m a y be great enough to extricate us#
I b e l i e v e I am safe in a s s u m i n g that all of us a.re in accord on f
three general principles:
should p a y as w e go
1#
We
insofar as practicable#
2.
Inflation, n e x t to w ar and pestilence,
fates that can befall a nation.
3.
The A m e r i c a n people are r e ady and w i l l i n g end anxious to pay
every last penn;/ n e c e s s a r y to d e f e n d A m e r i c a and preserve
our wa y of life.
is one of the worst
But even t h e s e t h r e e p r i n c i p l e s l e a v e room f o r some d i s c u s s i o n
and i t might be w e l l f o r us t o s e e t o what e x t e n t , i f any, we d i s a g r e e
on t h e a p p l i c a t i o n o f t h e s e p r i n c i p l e s ,
L a s t A p r i l t h e S e c r e t a r y o f t h e T r e a s u r y , Henry Morgenthau, J r . ,
a s k ed t h e C on gr ess t o p r o v i d e us w i t h t a x r e v e n u e s which would e n a b l e
us t o d e f r a y t w o - t h i r d s o f our c u r r e n t e x p e n d i t u r e s out of t a x
c o l l e c t i o n s and o n l y o n e - t h i r d out o f b o r r o w i n g s .
The n a t i o n a p p la u d
ed t h i s s t a t e m e n t of p r i n c i p l e , and y e t so r a p i d l y d i d our d e f e n s e
e x p e n d i t u r e s mount t h a t even b e f o r e t h a t t a x b i l l was e n a c t e d i n t o
law t h e t o t a l y i e l d of o l d t a x e s s up pl em ent ed by t h o s e in t h e new
b i l l f e l l s h o r t of t h e t w o - t h i r d s g o a l .
We a r e s t i l l aim in g a t t h a t
g o a l , f o r we a l l want t o pay a s we go i n s o f a r a s i s p r a c t i c a b l e .
But how f a r i s i t " p r a c t i c a b l e n?
S u r e l y t h e r e i s a p o i n t beyond
which we c a n n o t go and which we p r o b a b l y c a n n o t s a f e l y a p p r o a c h .
That i s t h e p o i n t where t a x e s become so g r e a t t h a t t h e y k i l l i n d i v i d
u a l i n i t i a t i v e , t h e y d u l l s h a r p c o r p o r a t e management, t h e y d i s r u p t
commerce, and e v e n t u a l l y t h e y k i l l t h e go o s e t h a t l a y s t h e g o ld en
egg.
I t may be o f some c o m f o r t f o r you a l l t o know t h a t t h o s e men
who a r e c h a r g e d w i t h f o r m u l a t i n g t a x p o l i c i e s a r e k e e n l y aware o f
th is f a c to r .
But i t may be of l e s s p e r s o n a l c o n s o l a t i o n f o r you
t o h e a r t h a t a l l a r e a g r e e d we ha ve n o t y e t r e a c h e d t h i s p o i n t .
R e c e n t l y t h e Chamber o f Commerce of t h e U n i t e d S t a t e s i s s u e d
a s t a t e m e n t p u r p o r t i n g t o show t h a t p e r c a p i t a t a x e s a r e h i g h e r t o d a y
in A m eri ca t h a n t h e y a r e in G r e a t B r i t a i n , and t h a t a l a r g e r p r o
p o r t i o n o f our n a t i o n a l income go es t o governments.! t r e a s u r i e s in t h e
form o f t a x e s t h a n in t h e c a s e of G r e a t B r i t a i n .
I do no t know t h e
m o t i v e o r t h e p u rp o s e o f t h i s s t a t e m e n t .
From my a c q u a i n t a n c e w i t h
t h e o f f i c e r s and members o f t h a t a s s o c i a t i o n X am l e d t o a t t r i b u t e
t o t h a t s t a t e m e n t no u l t e r i o r m o t i v e o r unworthy p u r p o s e .
However,
I f e e l o b l i g e d t o s t a t e t o you and t o t h e c o u n t r y t h a t the in f o r m a
t i o n c o n t a i n e d in t h a t s t a t e m e n t i s a t g r e a t v a r i a n c e w i t h a l l of
the in fo rm atio n a t the d i s p o s a l of th e United S t a t e s T reasu ry Depart
ment .
P e r h a p s one r e a s o n f o r t h i s d i f f e r e n c e i s t h a t t h e f i g u r e s i n
t h e s t a t e m e n t a p p e a r e d t o i n c l u d e S o c i a l S e c u r i t y t a x e s in t h e U n i t e d
S t a t e s w h i l e e x c l u d i n g them and s i m i l a r t a x c h a r g e s from t h e B r i t i s h
estim ate.
S i m i l a r l y , as a r e s u l t o f u s i n g as a f i g u r e f o r t h e B r i t i s h
n a t i o n a l income 36 b i l l i o n s o f d o l l a r s r a t h e r t h a n 2^- b i l l i o n s of
d o l l a r s (w h ic h we b e l i e v e i s t h e c o r r e c t f i g u r e ) t h e e s t i m a t e s were
thrown f a r out o f f o c u s .
The c o r r e c t i o n made in t h e f i g u r e s a s a
r e s u l t o f ou r i n f o r m a t i o n e s t a b l i s h e s t h a t , w h ere as t h e Chamber o f
Commerce s t a t e s t h a t th e p e r c a p i t a t a x in A m eri ca i s $ l 6 S p e r y e a r
as a g a i n s t a s i m i l a r p e r c a p i t a t a x p a i d i n G r e a t B r i t a i n o f $ 1 6 5 ,
t h i s l a t t e r f i g u r e shou ld be cha ng ed t o $ 2 0 0 p e r y e a r .
5
S i m i l a r l y I w i s h to correct the statement about the p r o p o r t i o n of
na t i o n a l income b e ing c o l l e c t e d in taxes in the two countries*
In
the current fiscal y e a r a p p r o x i m a t e l y 22 pe r c e n t of the na t i o n a l in
come of the U n i t e d States is b e i n g c o l l ected in taxes b y national,
state and municipal governments.
In G r e a t B r i t a i n a p p r o x i m a t e l y 40
p e r cent of the nat i o n a l income is g o ing this y ear for taxes.
Since
the p er capita income in the U n i t e d States is m u c h h i g h e r than in
Great Britain, the actual b u r d e n of current taxation upo n the B r i t i s h
people is very m u c h g r e ater than that u p o n the A m e r i c a n people.
M a y I point out to y o u that in the y e a r of 1959 —
after M u n i c h about 20 percent of the na t i o n a l income of Prance found its w a y to that
R e p u b l i c ’s treasury.
M a y I also advise yo u that the bes t estimates
available indicate that 70 p e r c e n t of the n a t ional Income of the
people of Ge r m a n y is n o w being a p p r o p r i a t e d b y the Reich, piftjy p e r c e n t
of their total na t i o n a l income is d e v oted to their war effort.
These
figures m a y shed some light u p o n the m a g n i t u d e of o ur job —
s job
w h i c h was de f i n e d b y the P r e s ident of the U n i t e d States on Septemb er
11, 1941, to be ”to turn the wor k s h o p s of our industry into m i g h t y
forges of w a r —
to o u t b u i l d the aggressors in every c a t egory of
modern arms” .
The national income of Am e r i c a at the pr e s e n t time is running
well over the rate of 90 b i l l i o n dollars a year.
It is n ot u n l i k e l y
that in the n e a r future it m a y r e a c h the rate of mor e than 100 b i l l i o n
dollars a year.
It w o u l d seem to be folly itself were the Federal
g o v e r n m e n t n ot to avail itself of this o p p o r t u n i t y of o b t aining In
taxes an i ncreasing share of this huge na t i o n a l income.
This m a y be
the b est o p p o r t u n i t y for years to come to put our fiscal h o use in
order.
E v e r y dollar collected in taxes n o w leaves us that m u c h
b e t t e r off w h e n we m u s t face the p e r i o d of r e a d j u s t m e n t following
this war.
W h i l e we are in a p o s i t i o n to b e a r still h e a v i e r taxes, it is
u n d e n i a b l e that this h e a v y tax b u r d e n means individual sacrifices
and individual inequities.
Those of us who are living on f i xed in
comes, for example, will be h e a v i l y hit b y tax increases.
M any
of us who n o w see in rising wages a chance to o b t a i n some of the
things long denied m u s t be disappointed.
The w e a l t h y W h o n o w bear
h i g h taxes will be called u p o n to shoulder even h e a v i e r loads.
Defects in the tax structure will b e c o m e more and more inequitable as
the load to b e b o r n e b y the structure c o n s t a n t l y increases.
But even
u n d e r the best of circumstances a tax syst e m w h i c h produces billions
of dollars in revenue rarely achieves complete equity.
In times of
e m e r gency the p r o b l e m b e c omes even more difficult.
The job, like all
defense jobs, w h e t h e r it be priorities, armaments, or taxation, is to
a c c o m p l i s h first things first.
We can only promise that in imposing
a h e a v y tax b u r d e n all that Is possible w i t h i n these limits will be
done to make its impact equitable.
6
Th ere i s a n o t h e r r e a s o n , ho w eve r, which a p p e a l s to ou r f i s c a l
s a n i t y to e x t e n d F e d e r a l t a x e s and t o do i t p r om pt ly * We need n o t
l o o k t o th e f u t u r e a l o n e to j u s t i f y t h i s h e a v y b u r d e n .
Compare th e
burden o f a d d i t i o n a l t a x e s w i t h t h e b u rd e n o f i n f l a t i o n .
In th e
l a s t two y e a r s th e c o s t o f l i v i n g i n Am eri ca h a s r i s e n 9-g- p e r c e n t .
I t h a s r i s e n 7 p e r c e n t s i n c e March o f t h i s y e a r .
So f a r as t h e g r e a t
p r o p o r t i o n o f American wage e a r n e r s a r e c o n c e r n e d th e r e s u l t i s th e
same a s though we had l e v i e d upon t h e i r wages a p a y r o l l t a x o f 9gpercent.
And y e t th e tremendous sum t h i s r e p r e s e n t s ha s v a n i s h e d i n
th e t h i n a i r o f i n f l a t i o n ; i t h a s n o t b o ug h t one p l a n e , one r i f l e ,
o r one b u l l e t .
While p e n a l i z i n g th e wage e a r n e r c r u e l l y i t h a s n o t
n e t t e d th e F e d e r a l T r e a s u r y so much as one r e d c e n t b e c a u s e w h a t e v e r
h a s t h e r e b y been added i n h i g h e r income t a x r ev en u e h a s been more th an
o f f s e t by t h e i n c r e a s e i n th e p r i c e o f t h o s e t h i n g s th e Government
must bu y.
Having Un cle Sam a s a p c r t n e r i n s h a r i n g th e s a l a r y c hec k o r th e
wage e n v e lo p e i s f a r b e t t e r th an h a v i n g t h e s p e c t r e o f i n f l a t i o n as
a g u e s t a t the din n er t a b l e .
Tax i n c r e a s e s a r e m anageable by b o t h
Government and t a x p a y e r .
E a c h can s ee what i s h a p p e n i n g .
The t a x
p a y e r can b u d g e t h i s r e s o u r c e s and p l a n h i s s pen di ng w i t h a r e a s o n a b l e
degree o f c e r t a i n t y .
B ut he i s d e f e n s e l e s s b e f o r e th e c r e e p i n g
paralysis of in fla tio n .
How can he b u d g e t h i s r e s o u r c e s when he does
n o t know how much he must spend f o r eggs t o d a y , f o r eggs tomorrow, f o r
eggs th e day a f t e r , f o r b u t t e r , f o r b r e a d ?
Tax s a c r i f i c e s a r e acco mp ani ed by an u n d e r s t a n d i n g o f th e c o n t r i
b u t i o n t h a t i s b e i n g made, by a r e a l i z a t i o n t h a t one i s do ing o n e ’ s
p a r t in a b i t t e r s t r u g g l e .
But th e s a c r i f i c e s o f i n f l a t i o n a r e accom
p a n i e d o n l y by t h e f e a r o f u n c e r t a i n t y , by th e h e l p l e s s n e s s and th e
h o p e l e s s n e s s t h a t comes w i t h t r y i n g t o f i g h t th e i n v i s i b l e .
Knowing
a l l t h i s , how f a r a r e we w i l l i n g t o go t o p r e v e n t i n f l a t i o n ?
How
d e e p l y s h a l l we ask t h e s u r g e o n t o c u t to f r e e us o f t h i s m a l i g n a n t
gr ow th ? Of e q u a l i m p o r t a n c e , how soon do we want t h e o p e r a t i o n ?
The w i l l i n g n e s s o f t h e American p e o p l e to submit t o s u b s t a n t i a l l y
h i g h e r t a x e s i s a t t e s t e d on a l l s i d e s .
I n t h i s c i t y 1 6 8 y e a r s ago
o c c u r r e d one o f t h e f i r s t t a x r e v o l t s on t h i s c o n t i n e n t .
I t was
th e r e s u l t o f th e i m p o s i t i o n o f a t a x f o r t h e b e n e f i t o f o t h e r s upon
a people denied r e p r e s e n t a t i o n .
The t a x e s which have been and w i l l
be imposed upon t h e Am erican p e o p l e have been imposed and w i l l be
v o t e d by t h e d u l y e l e c t e d r e p r e s e n t a t i v e s o f t h e Am erican p e o p l e .
These t a x e s have b e e n n e c e s s i t a t e d by p o l i c i e s t h e r e p r e s e n t a t i v e s
c-f th e American p e o p l e have d e t e r m i n e d a,re e s s e n t i a l t o th e d e f e n s e
o f ou r D em oc rac y.
The p e o p l e o f Am erica know you c a n n o t p l a c e a
p r i c e t a g on t h e freed om o f s p e e c h .
They know t h a t no sum i s to o
g r e a t t o pay f o r f re ed om o f w o r s h i p .
They know t h a t freedom from want
and freed om from f e a r a r e beyond e v a l u a t i o n .
- 7 ~
So , a l s o , do t h e y know t h a t $1 p a i d in t a x e s t o d a y a c c o m p l i s h e s
as much as $2 p a i d t w e n t y - f i v e y e a r s from now, f o r t h e y l e a r n e d from
t h e l a s t war t h a t f i n a n c i n g c h a r g e s can e q u a l t h e o r i g i n a l e x p e n d i t u r e ;
They know, t o o , t h a t t a x e s c o n s t i t u t e t h e o n ly s o u r c e of r eve nu e of
our Government, t h a t t h e y a f f o r d t h e o n ly means of p a y i n g e v e n t u a l l y
f o r t h e t a n k s , t h e guns, t h e p l a n e s , t h e s h i p s we may so d e s p e r a t e l y
need t o p r e s e r v e our c i v i l i z a t i o n .
More t h a n t h i s — th ey know t h a t
i f we a r e t o p r e s e r v e our American s y s t e m , t h i s h i l l f o r d e f e n s e w i l l
be p a i d 100 c e n t s on t h e d o l l a r , and t h e s o o n e r , th e c h e a p e r .
They
know, t o o , t h a t w h a t e v e r amount we a r e now o b l i g e d t o b o rr ow we must
s e r v i c e through t a x e s ,
A t a x b i l l i s not a s i n s p i r i n g as a b a t t a l i o n of m arc hi ng men,
a squadron o f p l a n e s , o r a column o f t a n k s d a s h i n g a c r o s s a f i e l d .
B u t ' i t i s j u s t as v i t a l t o t h e d e f e n s e of our n a t i o n in time of
emergency and e q u a l l y v i t a l t o t h e p e r p e t u a t i o n o f o u r i d e a l s when
t h e emergency ha s ended.
Thes e t h i n g s th e American p e o p le know.
T h e i r c o o p e r a t i o n and t h e i r r e s p o n s e i s not t o be do u b te d .
We must a l l make s a c r i f i c e s , s a c r i f i c e s t h a t w i l l h u r t .
But we
may f i n d s o l a c e in t h e r e a l i z a t i o n t h a t t h e d o l l a r s t h a t a r e t a k e n
now out of a r i s i n g n a t i o n a l income a r e f a r more e a s i l y p a y a b l e th a n
t h e d o l l a r s t h a t would h av e t o be wrung out o f a d i s l o c a t e d p o s t
d e f e n s e economy.
The m e a s u r e s we t a k e t o d a y may d e t e r m i n e our way
o f l i f e a decad e from now.
I f we t a k e t h e e a s y p a t h and borrow i n
s t e a d of t a x , a l e s s p a i n f u l t o d a y may t u r n i n t o a b i t t e r f u t u r e of
enormous debts, heavy" i n t e r e s t b u r d e n s , and low n a t i o n a l income.
But t h e s a c r i f i c e s of a h e a v i e r t a x burden t o d a y w i l l mean a b e t t e r
l i f e in t h e f u t u r e .
Those s a c r i f i c e s w i l l be a s m a l l p r i c e to pay f o r
th e m a i n t e n a n c e of our way o f l i f e in t h e y e a r s t o come.
-OoO*
T R E A S U R Y D E P A RTMENT
Washington
O c t o b e r 2 3 , 19*11,
I n t e x t . o f a d d r e s s by A s s i s t a n t S e c r e t a r y John L , S u l l i v a n
b e fo re the A s s o c i a te d I n d u s t r i e s of M a ssa ch u se tts,
as d i s t r i b u t e d
e a r l i e r to day,, p l e a s e make i t r e a d *
Pa ge *+,. t h i r d p a r a g r a p h , , l i n e
k-t- ^ ^ ^ p o r t i o n
o f our
n a t i o n a l incomes g o e s t o g o v e r n m e n t a l t r e a s u r i e s i n t h e * * * 4 i n s t e a d
of previous*.
Pa g e 7 ,
f i r s t paragraph,
l i n e 1 0 ::
,,####knowl t o o ,
that
w h a t e v e r amount we' a r e now o b l i g e d t o b o rr o w we must* * * * 11 i n s t e a d o f
previous#
~ 0o 0~
1
TREASURY DEPARTMENT
Washington
o
FOR IMMEDIATE RELEASE
Thursday, October 23, 1941,
Press Service
No. 28-17
The Treasury Department today took further strong
measures to prevent the Axis from realizing free dollars or
other valuable foreign currencies through remittances to
Axis controlled areas.
Under today’s àmen
ent to General License No. 32
remittances to persons In the Axis countries and in Axis
controlled countries cannot be made if such remittances make
free dollars or valuable foreign currency available to the
Axis.
Such remittances are still permitted if only blocked
dollars result from the transaction.
This policy
has not as yet been fully applied with respect
JL.
u
O
to remittances to American citizens in the "frozen” countries.
Remittances to such Americans may continue substantially as
at present under General License No. 33.
The Treasury Department also indicated that the same
strict policy would be followed in dealing with applications
for special licenses.
It was further indicated that amounts
made available to American citizens in Axis countries and
Axis controlled countries under special licenses may
be
drastically curtailed.
-oOo\
T R E A S U R Y D E P A RTMENT
Office of the Sec r e t a r y
October 2 3 ,
1Ô41.
m m f^ AP t î CEN3E N0- ®2 ’ AS AMENDED,
U N D E R a X E C U T I V E O R D E R NO.
8389,
APRIL
¿ 2 ’ Ti® 4 0 ’ A3 AMENDED, AND REGULATIONS
Î n SM a ? r ^ R S Ü A N T T H E R E TO, R E L A T I N G TO
T R A N S A C TIONS IN F O R E I G N EXCHANGE, E T C . »
32 I s a m e n d e d
General L i c ense No.
(1 )
a
to read as follows:
general licen se
i s hereby g ran ted a u t h o r iz i n g re m it
t a n c e s by any i n d i v i d u a l t h r o u g h any d o m e s t i c bank t o any i n d i
v i d u a l who i s a n a t i o n a l o f a b l o c k e d c o u n t r y and who i s w i t h i n
any f o r e i g n c o u n t r y ,
j
su c h r e m i t t a n c e s ,
and a n y d o m e s t i c bank i s a u t h o r i z e d
to e f f e c
p r o v i d e d t h e f o l l o w i n g te r m s and c o n d i t i o n s a r e
complied w ith :
(a)
S u c h r emittances are made
only for the n e o e s s a r v
e x c e e d S l O O ^ i n H H t h e p a r e „ and M s h o u s e h o l d and do n o t 7
excent
0 n f o a i e n d a r m° n t h t o any one h o u s e h o l d ,
e x c e p t t h o t a d d i t i o n a l sums n o t e x c e e d i n g $ 2 5 i n anv one
calendar month may be r e m i t t e d f o r e a c h member o f ?he
in^no c - o ^ s h o n ^ a 111 a d d l t i o n t o t h e p a y e e , p r o v i d e d t h a t
b
m iitttte! d
a et o^1 1any one
SUm h
Y o ues xe h
c eosl sd ; o f $200 p e r c a l e n d a r month
oee rr ee m
fit
? ^ c h . r e m i t t a n c e s a r e n o t made from a b l o c k e d
w ithin the n
^
i
S? a c c o u n t i n a ban king i n s t i t u t i o n '
beneficial
¿ he name o f ' o r l n which t h e
ho u s eh o ld *
;
1S
”khe p a y e e o r members of h i s
P a Y ee is with i n a n y b l o c k e d country,
remittance m a y be eff e c t e d only:
*
•hi
i1 )
the payment o f th e d o l l a r amount o f
r e m i t t a n c e t o a d o m e s t i c bank f o r c r e d i t t o a
wi?h?n
within
from
the
* n Ch ° Unt
in theor name of a b a n k i n g inst i t u t i o n
such
country;
P H
®y t h e a c q u i s i t i o n o f f o r e i g n e x c h a n g e
s p e c i ? i c H i v nQY H n? Unlted S t a t e s havin^ « l i c e n s e
y a u t h o r i z i n g th e s a l e
b ( b ) , 40 3 t a t . 4 1 5 and 9 6 6 ;
Ex. Order 8389
An-ri i i n
i a/n
8 7 8 5 , June 14 iqai
,?„*4
1 0 ' 1 9 4 0 ' as
A p ril 1 0 ? 19^6
as
t
?!i 8 ? ^ 2 ’ J u l y
^
a s amended J u n e 1 4 , 1 9 4 1 , and
otcit. 1 7 9 ;
of s u c h e x c h a n g e . -
S e c . 2 48 St a t
T- —Ka ~
f*
s i a i . i , 54
amended by Ex. Order
2 6 ’ 1 9 4 ll Regulations,
J u ly 26, 1941.
IL-32
2
(d)
I f t h e pay ee i s w i t h i n any f o r e i g n c o u n t r y
o t h e r t h a n a b l o c k e d c o u n t r y th e r e m i t t a n c e may be
e f f e c t e d i n t h e same manner t h a t s u c h r e m i t t a n c e would
be e f f e c t e d i f th e p a y e e were n o t a n a t i o n a l o f a
b l o c k e d coun tr y.(2)
A l l i n d i v i d u a l s making such r e m i t t a n c e s and a l l
d o m e s t i c banks e f f e c t i n g s u c h r e m i t t a n c e s
selves
shall s a tis fy
t h a t t h e f o r e g o i n g t e r m s and c o n d i t i o n s a r e
them
com pl ie d
with.
(3)
Do me stic banks t h r o u g h which any suc h r e m i t t a n c e s
originate
shall
e x e c u t e p r o m p t l y S e c t i o n A o f Form TF R -1 32 in
t r i p l i c a t e w i t h r e s p e c t t o e a c h such r e m i t t a n c e .
executed,
When so
suc h c o p i e s o f Form TFR -132 s h a l l be f o r w a r d e d
p r o m p t l y t o the d o m e s t i c b a n k . u l t i m a t e l y t r a n s m i t t i n g a b r o a d
(by c a b l e o r o t h e r w i s e )
t h e payment i n s t r u c t i o n s
m i t t a n c e and t h e l a t t e r bank s h a l l ,
execute
file
f o r such r e
upon th e r e c e i p t
thereof,
S e c t i o n B of su c h c o p i e s of Form T FR -1 32 and p r o m p t l y
such execu ted r e p o rt in t r i p l i c a t e
F e d e r a l R e s e r v e Bank.
such r e m i t t a n c e
w i t h th e a p p r o p r i a t e
I f th e d o m e s t i c bank t h r o u g h which any
originates
i s a l s o th e bank u l t i m a t e l y t r a n s
m i t t i n g a b r o a d th e payment i n s t r u c t i o n s
f o r such r e m i t t a n c e ,
th e n s u c h bank s h a l l e x e c u t e b o t h S e c t i o n s A and B o f s u c h
rep ort.
No r e p o r t
on Form T FR -1 3 2 s h a l l be deemed t o have
been f i l e d i n c o m p l i a n c e w i t h t h i s g e n e r a l l i c e n s e u n l e s s
b o t h S e c t i o n s A and B t h e r e o f have been d u l y e x e c u t e d as h e r e
in p r e s c r ib e d .
G-L-32
- 3 -
As u s ed i n t h i s g e n e r a l l i c ethen s e term
(4)
"h o u se h o ld "
s h a l l mean:
(a)
t h e s e i n d i v i d u a l s s h a r i n g a common d w e l l i n g
as a f a m i l y ; o r
(b )
any i n d i v i d u a l n o t s h a r i n g a common d w e l l i n g
w i t h o t h e r s as a f a m i l y .
ill* 0.1•
FOLEY, JR.
A c t i n g S e c r e t a r y of t h e T r e a s u r y .
TREASURY DEPARTMENT
O ffice of the S e c r e ta r y
October 23, 1941.
GENERAL LICENSE NO. 3 3 , A3 AMENDED,
UNDER EXECUTIVE ORDER NO. 8 3 8 9 , APRIL
1 0 , 1 9 4 0 , A3 AMENDED, AND REGULATIONS
ISSUED PURSUANT THERETO, RELATING TO
TRANSACTIONS IN FOREIGN EXCHANGE, ETC. *
G e n e ra l L i c e n s e No. 3 3 i s amended to
(1)
read a s
A general lice n se I s
follow s:
hereby g ra n te d a u t h o r i z i n g r e m i t
t a n c e s by any i n d i v i d u a l t h r o u g h any d o m e s t i c bank t o any i n d i
v i d u a l who i s a c i t i z e n o f th e U n i t e d S t a t e s w i t h i n any f o r e i g n
c o u n t r y and any d o m e s t i c bank i s a u t h o r i z e d to e f f e c t
tances,
p r o v i d e d th e f o l l o w i n g terms and c o n d i t i o n s
such r e m i t
a r e com plied
w ith:
(a)
Such r e m i t t a n c e s do not e x c e e d $ 5 0 0 i n any one
c a l e n d a r month to any p a y e e and h i s h o u s e h o l d and a r e
made o n l y f o r the n e c e s s a r y l i v i n g and t r a v e l i n g e x p e n s e s
o f th e p ay ee and h i s h o u s e h o l d , e x c e p t t h a t a n a d d i t i o n a l
sum no t e x c e e d i n g $ 1 0 0 0 may be r e m i t t e d once t i s u c h pay ee
i f su c h sum w i l l be us ed f o r th e p u r p o s e o f e n a b l i n g the
p ay ee o r h i s h o u s e h o ld t o r e t u r n t o t h e U n it e d S t a t e s ;
(b)
Such r e m i t t a n c e s a r e not made from a b l o c k e d
a c c o u n t o t h e r t h a n from an a c c o u n t i n a ban ki n g i n s t i t u wltfoin the U n i t e d S t a t e s i n t h e name o f , o r i n which
t h e b e n e f i c i a l i n t e r e s t i s h e l d by , t h e pay ee o r members
of h is household.
(2)
a n t to
Rem ittances h erein authorized
t h e t e r m s and c o n d i t i o n s
uncler ( 1 )
of (c )
of G e n e r a l L i c e n s e No. 3 2 .
e f f e c t e d p u r s u a n t to
(c)
under (1 )
or (d),
If
s h a l l be e f f e c t e d p u r s u
as th e c a s e niay be,
r e m i t t a n c e s c a n n o t be
o f G e n e r a l L i c e n s e No. 3 2 ,
d o m e s t i c banks a r e a u t h o r i z e d to e f f e c t
suc h r e m i t t a n c e s
i n any
o f t h e f o l l o w i n g t h r e e ways:
*
E H “ 3 e o ;. ? ( b ) ’ 40 s t a t * 4 1 6 and 9 6 6 ; S e e . 2 , 4 8 S t a t . 1 ; 54
T7 9 ’
? r ° e r 8 3 8 9 , A p r i l 1 0 , 1 9 4 0 , a s amended by Ex . Order
Anri i
1 9 4 1 ' ard ? x - 0r<Jf:r 8 8 3 2 > J u l y 2 6 > 1 9 4 1 ; R e g u l a t i o n s ,
April x o , 1 9 4 0 , as amended J u n e 1 4 , 1 9 4 1 , and J u l y 2 6 , 1 9 4 1 .
nT
UJj- oQ Q
o
fl ¿ I
(a)
By e s t a b l i s h i n g ; o r m a i n t a i n i n g f r e e d o l l a r a c c o u n t s
(b)
By payment o f t h e d o l l a r amount o f t h e r e m i t t a n c e
t o a d o m e s t i c bank f o r c r e d i t t o a b l o c k e d a c c o u n t i n t h e
name o f a ba n k in g i n s t i t u t i o n w i t h i n a n y b l o c k e d c o u n t r y ; o r
(c)
By payment o f th e d o l l a r amount o f t h e r e m i t t a n c e
t o a d o m e s t i c bank f o r c r e d i t t o t h e d o l l a r a c c o u n t o f a
ban ki n g i n s t i t u t i o n which i s not a n a t i o n a l of anv bl ocked
country.
(3)
A l l i n d i v i d u a l s making s u c h r e m i t t a n c e s and a l l d o m e s t i c
banks e f f e c t i n g
s u c h r e m i t t a n c e s s h a l l s a t i s f y t h e m s e l v e s t h a t the
f o r e g o i n g te rm s and c o n d i t i o n s
(4)
are complied w ith.
With r e s p e c t t o e a c h r e m i t t a n c e made p u r s u a n t t o t h i s
general licen se,
r e p o r t s on Form T FR -1 32 s h a l l be e x e c u t e d and
f i l e d - i n t h e ma.nner and form a n d u n d e r t h e c o n d i t i o n s p r e s c r i b e d
i n G e n e r a l L i c e n s e No. 3 2 .
(5)
As u s e d i n t h i s g e n e r a l l i c e n s e
the term
“h o u s e h o l d ”
s h a l l be deemed t o have t h e meaning p r e s c r i b e d i n G e n e r a l L i c e n s e
No.
32.
*
E. E. FOLEY, JR.
A ctin g S e c r e t a r y of the Treasury.
t
TREASURY DEPARTMENT
Office of the Secretary
October 23, 1941,
GENERAL LICENSE NO. 72, AS AMENDED,
UNDER EXECUTIVE ORDER NO. 8389, APRIL
10, 191*0> AS AMENDED, AND REGULATIONS
ISSUED PURSUANT THERETO, RELATING TO
TRANSACTIONS IN FOREIGN EXCHANGE, ■ETC.*
Paragraph (2) of General License No. 72 is hereby amended
in the following respects:
(a)
The following sentences are deleted:
’'Domestic banks are authorized to effect the
payments referred to in (c) and to establish
and maintain free dollar accounts if necessary,
and only to the extent necessary, to effect
such payments. Domestic banks are not author
ized to establish or maintain free dollar accounts
in cases where such payments may be effected in
the manner prescribed in (a) or (b) of General
License No. 32, as amended."
(b)
The following sentence is substituted for the
sentences deleted by paragraph (a) of this
amendment:
"Domestic banks shall effect the payments
referred to in (c) pursuant to the terms and
conditions of paragraph (2) of General License
No. 33."
E. H. FOLEY, JR.
Acting Secretary of the Treasury.
179??
iqM
^ Sta^. Rib
2, 1*8 Stately % ¿'tail
k ‘L°£de'
rn —
ia*
as tended by Ex. Order 8?8£, June ll*,
Ex* pm e r 8832, July 26, I 9 k l ; Regulations, April 10, 191*0, as
amended June lit, 19l*l, and July 26, 191*1.
At
t \t i a
-
3-
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss*
Treasury Department Circular No* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue*
Copies of the circular may be obtained from any
Federal He serve Bank or Branch*
xaagpE*
2
Reserve Banks and Branches,,following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejec
tion thereof.
The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final*
Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on
October 29. 19^1
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here- 1
after enacted.
The bills shall be subject tc
other excise taxes, whether Federal or State,
, inheritance, gift, or
.all be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority*
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest*
Under Sections 42 and 117 (a) (l) of the Internal
Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORE!?G FSSSPAPERS,
Friday, October 24, 1941,
The Secretary of the treasury, "by this public notice, invites tenders
-For it> 150.000,000
, or thereabouts, of ____Slr^jW 1treasury bills, to be issued
on a discount basis under competitive bidding.
be dated
October 29. 19*41____ , and will mature
The bills of this series will
JwfflMT 2g,j^
when the face amount will be payable without interest.
2---------- | '
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the f
closing hour, two o^lock p. m., Eastern Standard time,
1
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be
expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
I
fraction s
It is urged that tenders be made on the pointed forms and for- I
warded in the special envelopes which will be supplied by Federal Reserve Bank . I
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment secnn
ties.
Tenders from others must be accompanied by payment of 10 percent of tbe
f a c e amount of Treasury bills applied for, unless the tenders are accompanied t?
an express guaranty of payment by an incorporated bank or trust company.
a
a-t- the
Immediately after the closing hour, tenders will be opened at
f
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday. Ontoher PU. 19^1------•
£i*x
The Secretary of the Treasury, by this public notice, invites tenders
for » ISO.000 .OOP
,
-I __x,_ _.p
or thereabouts, of
q i _»dav
.
i
..I. rQ
on a discount basis under competitive bidding,
he dated
October 29. lQUl---- . and will mature
When the face a m o u ^ m
W
Treasurv "bills, to be issued,
-reasu *
The Dills of this series will
¿ne
January
be payable without interest.
Ì2L
They will be issued in
bearer form only, and in denominations of *1.000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p. m., Eastern Standard time, J4ondaZj--M^$r-2IU3iU
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be express
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the printed forms and for- I
warded in the special envelopes which will be supplied by rederal Reserve
I
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks
trust companies and from responsible and recognized dealers m
ties*
investment s
I
Tanders from others must be accompanied by payment of 10 percent
face amount o f Treasury bills applied fdr. unless the tenders axe accompanied V ■
an express guaranty of payment by an incorporated bank or trust company.
, _+ the fledefl’f
TmrnprH ntelv after the closing hour, tenders will be opene
-
.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
F r i d a y , October
2k; lokli
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b l i c n o t i c e ,
i n v i t e s t e n d e r s f o r #1 5 0 , 000, 000,: o r t h e r e a b o u t s , of 9 1 - d a y
r e a s u r y b i l l s , t o be i s s u e d on a d i s c o u n t b a s i s under
O n tn h ^ p Q 6 f o ? f ng‘
The b i l l s
t h i s s e r i e s w i l l be d a t e d
O c t o b e r 2 9 , l j J j- l, and w i l l m atu re J a n u a r y 2g, 1 9 ^2 , when th e
r a c e amount w i l l be p a y a b l e w i t h o u t i n t e r e s t .
They w i l l be
£ ? rm ° n l y , and i n d e n o m i n a t i o n s o f #1 , 000.
v a l u e ) * 'f'1 0 * 0 0 0 * #10 0 , 000, #500, 000, and #1 , 000,000 ( m a t u r i t y
of
T e n d e r s w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks and
B r a n c h e s up t o th e c l o s i n g h o u r , two o ’ c l o c k p. m., E a s t e r n
S t a n d a r d t i m e , Monday, O c t o b e r
T e n d e rs w i l l n o t ' b e
r e c e i v e d a t t h e T r e a s u r y D ep art m en t, W a s h in g to n .
E ac h t e n d e r
must be f o r an even m u l t i p l e o f #1 , 000, and t h e p r i c e o f f e r e d
must be e x p r e s s e d on t h e b a s i s o f 10 0 , w i t h not more t h a n t h r e e
decim als, e, g
9 9 * 9 25 .
F r a c t i o n s may n o t be u s e d .
I t is
u r g e d t h a t t e n d e r s be made on t h e p r i n t e d forms and f o r w a r d e d
i n t h e s p e c i a l e n v e l o p e s which w i l l be s u p p l i e d by F e d e r a l
R e s e r v e Banks o r B r a n c h e s on a p p l i c a t i o n t h e r e f o r .
T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t from i n c o r
p o r a t e d banks and t r u s t companies and from r e s p o n s i b l e and
r e c o g n iz e d d e a l e r s in investment s e c u r i t i e s .
T e n d e r s from
o t h e r s must be ac co m p an ie d by payment o f 10 p e r c e n t o f t h e
f a c e amount o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s
a r e a c c o m p a n ie d by an e x p r e s s g u a r a n t y o f payment by an i n c o r
p o r a t e d bank o r t r u s t company.
I m m e d i a t e l y a f t e r t h e c l o s i n g h o u r , t e n d e r s w i l l be
opened a t t h e F e d e r a l R e s e r v e Banks and B r a n c h e s , f o l l o w i n g
which p u b l i c announcement w i l l be made by t h e S e c r e t a r y o f t h e
i r e a s u r y o f t h e amount and p r i c e r a n g e o f a c c e p t e d b i d s .
Those s u b m i t t i n g t e n d e r s w i l l be a d v i s e d o f t h e a c c e p t a n c e o r
re je ctio n th ereo f.
The S e c r e t a r y o f t h e T r e a s u r y e x p r e s s l y
r e s e r v e s t h e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s ,
in whole o r i n p a r t , and h i s a c t i o n i n any suc h r e s p e c t s h a l l
be f i n a l .
Payment o f a c c e p t e d t e n d e r s a t t h e p r i c e s o f f e r e d
must be made o r c o m p l e t e d a t t h e F e d e r a l R e s e r v e Bank i n c a s h
o r o t h e r i m m e d i a t e l y a v a i l a b l e funds on O c t o b e r 2 9 ,
Ijkl,
The income d e r i v e d from t r e a s u r y b i l l s , w h e th e r i n t e r e s t
o r g a i n from t h e s a l e o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l
n o t have any e x e m p t i o n , as s u c n , and l o s s from t h e s a l e o r
o t h e r d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l not ha ve any s p e c i a l
r e a t m e n t , as s u c h , under F e d e r a l t a x A c t s now o r h e r e a f t e r
enacted.
The b i l l s s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e ,
g i f t , o r o t h e r e x c i s e t a x e s , w h e th e r F e d e r a l o r S t a t e , bu t
2g - l g
-2-
s h a l l be exempt from a l l t a x a t i o n now o r h e r e a f t e r imposed on
t h e p r i n c i p a l o r i n t e r e s t t h e r e o f by any S t a t e , o r any o f t h e
p o s s e s s i o n s of t h e U n i t e d S t a t e s , o r by any l o c a l t a x i n g
authority.
F o r p u r p o s e s o f t a x a t i o n t h e amount o f d i s c o u n t a t
which T r e a s u r y b i l l s a r e o r i g i n a l l y s o l d by t h e U n i t e d S t a t e s
s h a l l be c o n s i d e r e d t o be i n t e r e s t .
Under S e c t i o n s ^2 and 1 1 7
( a ) ( 1 ) o f t h e I n t e r n a l Revenue Code, as amended by S e c t i o n
1 1 5 of t h e Revenue Act o f 1 9 ^ 1 , t h e amount o f d i s c o u n t a t
which b i l l s i s s u e d h e r e u n d e r a r e s o l d s h a l l n o t be c o n s i d e r e d
t o a c c r u e u n t i l s u c h b i l l s s h a l l be s o l d , redeemed o r o t h e r —
w i se d i s p o s e d o f , and su c h b i l l s a r e e x c l u d e d from c o n s i d e r a
t i o n as c a p i t a l a s s e t s .
A c c o r d i n g l y , t h e owner o f T r e a s u r y
b i l l s ^ ( o th e r than l i f e in su ran ce companies) is s u e d hereunder
need i n c l u d e i n h i s income t a x r e t u r n o n l y t h e d i f f e r e n c e
between t h e p r i c e p a i d f o r such b i l l s , wh eth er on o r i g i n a l
i s s u e o r on s u b s e q u e n t p u r c h a s e , and t h e amount a c t u a l l y
r e c e i v e d e i t h e r upon s a l e o r r e d e m p t i o n a t m a t u r i t y d u r i n g t h e
t a x a b l e y e a r f o r which t h e r e t u r n i s made, as o r d i n a r y g a i n o r
lo ss.
T r e a s u r y Department C i r c u l a r No. J|12>, as amended, and
t h i s n o t i c e , p r e s c r i b e th e t e r m s o f t h e T r e a s u r y b i l l s and
govern the c o n d i t i o n s of t h e i r i s s u e .
C op ies o f t h e c i r c u l a r
may be o b t a i n e d from any F e d e r a l R e s e r v e Bank o r B r a n c h .
0O0-
T S là S U R T DIPABSSaSHT
Washington
FOB M C M U f S RSJJSASK,
tharsdar. Oktober 23« 1941.
?I***
S***!«*
Secretary of thè Treasury Morgentfaau announced today tfaat thè subscrip-
tifisi books for th» earrent offering of 1 pore»ot Treasury Bote» of Sari«»
À-1946 »ftl* dose tt th» dose of business Frlday, ©etfifeor 24« this offering
in
opali oaly to th» hd4irs of Bocoostructioo Financ® Corporation Hotes of
Sari«. P, mturing h m b t r X. 1941» m ä <* Ccooodity Cr»dit Corpomtion ioU.
of dolio» %f aatoriag BOf»ato»r 15# 1941* th» »ff»r to *Ff>lF th» proe»»da of
payoent of th» Serio» P noto» and th» offer to parche»» Strie» 8 not**, in
either cas» th» prineipal proceed» of payaest to he appliod to pay»»iit for a
i4w> par aisotmt of ih» a»* fr**«aiT noto», will »l»o tooaiaat» »t ih» elom
of basine»» Friday, Oetober 24*
Subscriptions addressed to » Fhd»i*l I m
w i ì
Baafe or Brasati, or to th»
Treasury Department, sud plaeed io thè sali hefore 12 o'doeic ißidnight, f*i~
day» Oetober 24» »ili he ccsisidered a» hawisg he«o entered bifore thè close
of thè sub script lem boote»,
InnrmnrfiTit of th» aaoant of s»fe»e?iptÌ0i>» asd their dirision among
aererai Federai Baserò* Bistrtst» sdii he m d e later.
ih»
TREASURY DEPARTMENT
Was hin gto n
tonilffi,
FOR IMMEDIATE RELEASE,
T h u r s d a y , O c t o b e r 2 3 , 19^1«
1 Siri«
Press Service
No* 2'2>~19
S e c r e t a r y o f t h e T r e a s u r y Morgenthau announced t o d a y t h a t
t h e s u b s c r i p t i o n books f o r t h e c u r r e n t
o f f e r i n g of 1 p e r c e n t
Lafas
T r e a s u r y N o te s o f S e r i e s A- 19^ 6 w i l l c l o s e a t t h e c l o s e o f b u s i
Kpnikik
ness F r id a y ,
Mpncutt
h o l d e r s o f R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n Notes o f S e r i e s P,
|MUl.l
m a t u r i n g November 1 ,
pipBt!«
Notes o f S e r i e s E,
Ittoil»
t h e p r o c e e d s o f payment o f t h e S e r i e s P n o t e s and t h e o f f e r t o
O ctober 2^,
This o f f e r i n g i s
19^1,
and o f Commodity C r e d i t C o r p o r a t i o n
m a t u r i n g November 1 5 ,
purchase S e r ie s E n o te s ,
open o n l y t o t h e
19^T.
The o f f e r t o a p p ly
i n e i t h e r c a s e t h e p r i n c i p a l p r o c e e d s of
payment t o be a p p l i e d t o payment f o r a l i k e p a r amount o f t h e new
iliifM,i
«itn*
Treasury n o te s,
w i l l a l s o te rm in a te a t the c l o s e of b u sin ess
Friday,
2k.
October
S u b s c r i p t i o n s a d d r e s s e d t o a F e d e r a l R e s e r v e Bank o r B r a n c h ,
o r t o t h e T r e a s u r y D ep ar t m en t,
o ' c l o c k m idnight,
Friday,
and p l a c e d i n t h e m a i l b e f o r e 12
October
2k,
w i l l be c o n s i d e r e d as h a v i n g
be en e n t e r e d b e f o r e t h e c l o s e o f t h e s u b s c r i p t i o n books*
Announcement o f t h e amount o f s u b s c r i p t i o n s
and t h e i r
d i v i s i o n among t h e s e v e r a l F e d e r a l R e s e r v e D i s t r i c t s w i l l be made
later* ,
0O0
In making the announcement,
Secretary Morgenthau reiterated his
belief that it is extremely important for taxpayers to budget their ta:
in view of the greatly increased levies,
and expressed the hope that 1
i1
this ne w plan would be helpful.
The n e w tables disclose,
for instance,
that if your net income
for 1941 is $5,000 and you are a single person with no dependents,
you must save at the rate of $40 every month, or $483 a year, for
your Federal income taxes.
If you are married but have no dependents,
your savings for taxes should amount to $31 per month, or $375 a
year.
If you are married and have one dependent, you must save $27
a month,
or $323 a year.
you must save $23 a month,
have three dependents,
If you are married and have two dependents, I
or $271 a year.
If you a r e married and
you must save $18 per month, or $219 a year,
I
for the payment of Federal income taxes.
These tables begin at the lowest taxable amount and include
income tax classifications up to net incomes of $25,000 a year.
I
The
Tax Savings Notes being offered by the Treasury are issued in two
series, both dated August 1, 1941, and maturing August 1, 1943. They
iu.
I
cannot be presented
payment of income taxes before January 1, I»4»*
and must be held by the purchaser at least three months if they are
to be used for that purpose.
On January 1 of each year hereafter,
two n ew series of notes will be provided so that a taxpayer can
always purchase notes during the entire year in which he is receiving!
his income for use in payment of taxes^the following year.
(A copy of the "Know Your Taxes" pamphlet is en closed )
TREASURY DEPARTMENT
Washington
Press Service
No* 5à
FOR RELEASE, MORNING NEWSPAPERS,
Sunday.
October 26. 1 9 4 1 .
w v u iu q .r «
lO/ 2 3 /il
As a convenience to taxpaye:
today a folder
ie
“Kno w Your Taxes"
jaiHUK^at a glance the approximate amount of individual income taxes
due next year on 1941 salary and wage incomes of selected sizes and
Vthe amount of monthly savings needed to meet these payments*
TOtte/^the Secretary^explained, a taxpayer may ascertain with a
minimum of effort the portion of his monthly income he must set
aside regularly to meet next year's tax payments.
The /announcement
last August 1.
the easy savings plan inaugurated
At that time the Treasury placed on sale a new
type of security known as jtax savings notes which enables taxpayers
2Hr
to save systematically and conveniently to meet next year's higher
taxes.
These notes bear interest when used in payment of Federal
income taxes and provide the purchaser with an investment in advance
to meet future taxes.
—
banks to furnish each commercial bank in their district w&flfe»an
ample supply of these folders for enclosure in the next statement
of accounts mailed to depositors*
In addition,
s'1
it is planned to
include the folder in the December reminder to taxpayers ¿ v m tne
ed e ra l Heseml
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Table showing how much you will have to
pay in individual income taxes on salary and
wage incomes of selected sizes and the monthly
savings needed to meet, these 1941 income tax
payments.1
Table showing how much you will have to
pay in individual income taxes on salary and
wage incomes of selected sizes and the monthly
savings needed to meet these 1941 income tax
payments.1
Table showing how much you will have to
pay in individual income taxes on salary and
wage incomes of selected sizes and the monthly
savings needed to meet these 1941 income tax
payments.1
M a r rie d p e rso n living with h u sb a n d o r w ife— N o
M a r rie d p e rso n living w ith h u sb a n d o r w ife— O n e
M a r rie d p e rso n living w ith h u sb a n d o r w ife— T w o
M a r rie d p e rso n living w ith h u sb an d o r w ife— Three
d e p e n d e n ts
dependent
d ep en d en ts
d e p e n d e n ts
Table showing how much you will have to^|
pay in individual income taxes on salary a n d ^ H R
wage incomes of selected sizes and the monthly ^
savings needed to meet these 1941 income tax
payments.1
If your net income
from salary or
wages is—
You will need to
You will have to save
every month
pay, under the
to meet 1941 tax
1941 Act—
payments—
$ 1 ,5 0 0
$ i ; e o o ____________
$ 1 ,7 0 0 ___________ i
$ 1 , 8 0 0 - — ________
$ 1 , 9 0 0 ____________
$6
13
23
32
$1
1
2
3
$ 2 , 0 0 0 ____________
$ 2 , 1 0 0 ____________
$ 2 , 2 0 0 ________ —
$ 2 , 3 0 0 ____________
$ 2 , 4 0 0 ____________
42
52
61
71
80
4
4
$ 2 , 5 0 0 ____________
$ 3 ,0 0 0 ____________
$ 3 , 5 0 0 ____________
$ 4 , 0 0 0 ____________
$ 4 , 5 0 0 ____________
If your net income
from salary or
wages is—
You will have to You will need to
pay, under the save every month
to meet 1941 tax
1941 Act—
payments—
$ 1 , 5 0 0 ____________
$ 1 , 6 0 0 ____________
$ 1 , 7 0 0 _________ •
$ 1 , 8 0 0 ____________
$ 1 , 9 0 0 . .......................
If your net income
from salary or
wages is—
You will need to
You will have to save
every month
pay, under the
to meet 1941 tax
1941 Act—
payments—
If your net income
from salary or
wages is—
$ 1 , 5 0 0 ____________
$ i ; 6 0 0 ____________
$ i ; 7 o o ____________
$ 1 , 8 0 0 _______ — $ 1 , 9 0 0 ____________
* 1 ,5 0 0
S i;6 0 0
* 1:700
$ 1 ,8 0 0
$ i ;o o o
$6
$1
* 2 ,0 0 0
$ 2 '1 0 0 — $ 2 ,2 0 0 * 2 :3 0 0
$ 2 , 4 0 0 ____
You will need to
You will have to save
every month
pay, under the
to meet 1941 tax
1941 Act—
payments—
$6
12
21
31
40
$i
6
7
$ 2 , 0 0 0 ____________
$ 2 ,1 0 0 ____________
$ 2 , 2 0 0 ____________
$ 2 , 3 0 0 ____________
$ 2 , 4 0 0 ____________
2
3
3
$ 2 , 0 0 0 ____________
$ 2 ; 100____________
$ 2 ; 2 0 0 ____________
$ 2 ^ 0 0 ____________
$ 2 , 4 0 0 ____________
90
138
186
249
312
8
12
16
21
26
$ 2 ,5 0 0 ____________
$ 3 ,0 0 0 ____________
$ 3 , 5 0 0 ____________
$ 4 , 0 0 0 ____________
$ 4 ,5 0 0 ____________
50
98
146
197
260
4
8
12
16
22
$ 2 , 5 0 0 ____________
$ 3 , 0 0 0 ____________
$ 3 , 5 0 0 — ________
$ 4 , 0 0 0 ____________
$ 4 , 5 0 0 ____________
12
58
106
154
208
1
5
9
13
17
$ 2 ,5 0 0 . .
$ 3 ;o o o ____________
$ 3 , 5 0 0 ____________
$ 4 , 0 0 0 ____________
$ 4 , 5 0 0 ____________
$18
66
114
162
• $2
6
10
14
$ 5 , 0 0 0 _________ . . .
$ 6 , 0 0 0 ________ — .
$ 7 , 0 0 0 ____________
$ 8 , 0 0 0 ____________
$ 9 , 0 0 0 ____________
375
521
687
873
1, 0 7 9
31
43
57
73
90
$ 5 , 0 0 0 — _____—
$ 6 ,0 0 0 ____________
$ 7 , 0 0 0 — ________
$ 8 ,0 0 0 ____________
$ 9 , 0 0 0 ____________
323
453
619 ,
789
995
27
38
52
66
83
$ 5 , 0 0 0 ____________
$ 6 , 0 0 0 ____________
$ 7 , 0 0 0 ____________
$ 8 , 0 0 0 ____________
$ 9 , 0 0 0 ____________
271
397
551
717
911
23
33
46
60
76
$ 5 , 0 0 0 ______ _____
$ 6 , 0 0 0 _____ - _____
$ 7 , 0 0 0 ____________
$ 8 , 0 0 0 ____________
$ 9 , 0 0 0 ____________
219
345
483
649
827
18
29
40
54
69
$ 1 0 , 0 0 0 ...................._
$ 1 1 , 0 0 0 _____ _____
$ 1 2 , 0 0 0 ___________
$ 1 3 , 0 0 0 ................ .
$ 1 4 , 0 0 0 — ......... .
1,
1,
1,
2,
2,
305
551
817
103
409
109
129
151
175
201
$ 1 0 , 0 0 0 ___________
$ 1 1 , 0 0 0 ___________
$ 1 2 , 0 0 0 ___________
$ 1 3 , 0 0 0 ___________
$ 1 4 , 0 0 0 - ........... ........
1,
1,
1,
1,
2,
205
451
701
987
277
100
121
142
166
190
$ 1 0 , 0 0 0 ___________
$ 1 1 , 0 0 0 ___________
$ 1 2 , 0 0 0 ___________
$ 1 3 , 0 0 0 — .........
$ 1 4 , 0 0 0 ___________
1,
1,
1,
1,
2,
117
351
597
871
157
93
113
133
156
180
$ 1 0 , 0 0 0 ___________
$ 1 1 , 0 0 0 ___________
$ 1 2 , 0 0 0 ___________
$ 1 3 , 0 0 0 ___________
$ 1 4 , 0 0 0 ...... ...........
1,
1,
1,
1,
2,
033
251
497
755
041
86
104
125
146
170
$ 1 5 , 0 0 0 .............■. . .
$ 1 6 , 0 0 0 ................ .
$ 1 7 , 0 0 0 ...................
2, 739
3, 0 8 4
3, 4 4 4
228
257
287
$18,000..............
$19,000________
3, 819
4, 209
318
351
$ 1 5 , 0 0 0 ___________
$ 1 6 , 0 0 0 ___________
$ 1 7 , 0 0 0 ___________
$ 1 8 , 0 0 0 ___________
$ 1 9 , 0 0 0 ___________
2,
2,
3,
3,
4,
607
940
300
663
053
217
245
275
305
338
$ 1 5 , 0 0 0 ___. ______
$ 1 6 , 0 0 0 ___________
$ 1 7 , 0 0 0 ___________
$ 1 8 , 0 0 0 ___________
$ 1 9 , 0 0 0 ___________
2,
2,
3,
3,
3,
475
805
156
516
897
206
234
263
293
325
$ 1 5 , 0 0 0 - ........... ........
$ 1 6 , 0 0 0 ___________
$ 1 7 , 0 0 0 ___________
$ 1 8 , 0 0 0 ___________
$ 1 9 , 0 0 0 ___________
2,
2,
3,
3,
3,
343
673
012
372
741
195
223
251
281
312
$ 2 0 ,0 0 0 -...............
$21,000.............
$22,000— ..........
$23,000.................
$24,000............. .
$25,000........... .
4,
5,
5,
5,
6,
6,
385
420
456
493
532
572
$20,000_________ >
$21,000_________
$22,000_________
$23,000.............. $24,000_________
$25,000_________
4 ,4 4 6
4, 866
5 ,2 8 9
5, 739
6, 192
6, 672
371
406
441
478
516
556
$ 2 0 , 0 0 0 ___________
$ 2 1 , 0 0 0 ___________
$ 2 2 , 0 0 0 __________
$ 2 3 , 0 0 0 ___________
$ 2 4 , 0 0 0 ................ —
$ 2 5 , 0 0 0 ___________
4,
4,
5,
5,
6,
6,
287
698
118
559
009
480
357
392
427
463
501
540
$ 2 0 , 0 0 0 ___________
$ 2 1 , 0 0 0 ___________
$ 2 2 , 0 0 0 ___________
$ 2 3 , 0 0 0 ____ ______
$ 2 4 , 0 0 0 ___________
$ 2 5 , 0 0 0 ___________
4,
4,
4,
5,
5,
6,
131
530
950
379
829
288
344
378
413
448
486
524
614
034
469
919
384
864
>Computed to the nearest dollar.
5
i Computed to the nearest dollar.
i
1 Computed to the nearest dollar.
1 Computed to the nearest dollar.
16— 23985
—4
4-> O
r
M
CO CO
CX-> M
■g •§
-S
Iff’° ° l
a » l § ^ *fe!
s j m
■
S T A R T
/o
S A V I N G
N O W
m a k e t a x p a y m e n t s e a s ie r
You w ill see from the tables that if your net income
for 1941 is $ 5 ,OCX) and you are a single person w ith no
dependents, you must save at the rate o f $40 every
month or $483 a year for your Federal income taxes.
If you are married but have no dependents, your
savings for taxes should amount to $31 per month or
$375 a year. If you are married and have one de
pendent, you must save $27 per month or $323 a year.
If you are married and have tw o dependents, you
must save $23 per month or $271 a year. If you are
married and have three dependents, you must save
$18 per month or $219 a year for the payment o f Fed
eral income taxes.
CONSULT Y O U R
about
Tax
BANK
Savings
Notes
The T ax Savings Notes being offered by the Treasury
to make it easier for taxpayers to plan ahead are
being issued in two series, both dated August 1,1 9 4 1 ,
and maturing August 1, 1943. They bear interest
only when used to pay income taxes up to and includ
ing the month when the tax payment is made. The
notes cannot be presented for payment of income taxes
before January 1, 1942, and must be held by the pur
chaser at least three months if they are to be used for
rh at purpose. On January 1 of each year hereafter,
two new series of Notes w ill be provided so that a
taxpayer can always purchase Notes during the entire
year in which he is receiving his income for use in
payment of taxes due the following year. Plan now
to save some part of your income during the remain
ing months of this calendar year to be used for pay
ment of Federal income taxes.
The Treasury urges that you go immediately to
your neighborhood bank to secure detailed informa
tion about the T ax Savings Plan and how you per
sonally can best take advantage of it. Treasury
Department Circular No. 667 describing the Tax
Savings Notes in detail has been sent to all banks,
where you w ill find someone who w ill be glad to
answer any questions.
It is extremely important that the increased Federal
income taxes vitally necessary for National Defense
be provided for in your budget as you would provide
for other expenses.
U. S. GOVERNMENT PRINTING OFFICE
16— 23985
UNITED STATES TREASURY
KNOW
YOUR
TAXES
-f
:a
,g-
E~-s
fa s
I i I
if
&
M
£ ill
i
^4 A'lessttge to X axpayers
from the Secretary
o f the Treasury
Through our representatives in Congress we have
decided upon an “ all-out” defense program. We have
also expressed our preference for paying as much as
possible of the cost o f defense out of current earnings.
Your Government, therefore, is anxious that each
taxpayer know as promptly as possible w hat his in
come tax bill w ill be. As a service to the taxpayers, I
have had prepared the attached tables showing what
you w ill have to pay in the coming year, and how
much of your monthly income you should set aside
regularly for tax payments.
Tax Savings Notes are now being sold by the Treas
ury because thousands of citizens asked for a plan to
enable them to save money systematically and con
veniently for this purpose. When you examine the
attached tables you w ill, I think, see the usefulness of
these Treasury Notes in helping you to meet your own
tax payments next year. I am sure that your neigh
borhood bank w ill be glad to help you start such a
savings program. If you wish any additional infor
mation, I shall be glad to have you write to me at the
Treasury Department, Washington, D. C.
sfri
Secretary r ffb e Treatary
October 20, 1941.
T he attached tables show how much you w ill
TAX SAVINGS PLAN
have to pay in individual income taxes on 1941
salary and wage incomes of selected sizes and
the savings needed to meet these payments.
If your gross income is not more than $3,000
and consists w holly of salaries, wages, other
compensation for personal services, dividends,
interest, rent, annuities, or royalties, you may
make your tax payments in accordance with
the instructions contained in Form 1040-A.
In this case your tax w ill be slightly different
from that shown in the following tables, but
the monthly savings necessary w ill be approxi
mately the same.
Table showing how much you will have to
pay in individual income taxes on salary and
wage incomes of selected sizes and the monthly
savings needed to meet these 1941 income tax
payments.1
Sin gle p erso n — N o t h e a d of fam ily— N o d ep en d en ts
If your net income
from salary or
wages is—
You will need to
You will have to save
every month
pay, under the
to meet 1941 tax
1941 Act—
payments—
$750
$ 8 0 0 ______________
$ 9 0 0 _________ ____
$ 1 , 0 0 0 ____________
$ 1 , 1 0 0 ____________
$3
11
21
31
(2)
$1
2
3
$ 1 ,2 0 0 ____________
$ 1 , 3 0 0 _______ ____
$ 1 ,4 0 0 ____________
$ 1 ,5 0 0 ________ !___
$ 2 , 0 0 0 ______ _____
40
50
59
69
117
3
4
5
6
10
$ 2 ,5 0 0 ____________
$ 3 ,0 0 0 ____________
$ 3 ,5 0 0 ____________
$ 4 ,0 0 0 ____________
$ 5 ,0 0 0 ____________
165
221
284
347
483
14
18
24
29
40
$ 6 ,0 0 0 ____________
$ 7 ,0 0 0 ____________
$ 8 ,0 0 0 ____________
$ 9,000_____
$ 1 0 ,0 0 0 __________
649
825
1, 0 3 1
1, 2 4 7
1, 4 9 3
54
69
86
104
124
$ 1 1 , 0 0 0 _______ _
$ 1 2 ,0 0 0 __________
$ 1 3 ,0 0 0 ___________
$ 1 4 ,0 0 0 __________
$ 1 5 ,0 0 0 ___________
1,
2,
2,
2,
2,
749
035
331
657
994
146
170
194
221
250
$ 1 6 ,0 0 0 — —
$ 1 7 ,0 0 0 __________
$ 1 8 ,0 0 0 ___________
$ 1 9 ,0 0 0 __________
$ 2 0 ,0 0 0 ___________
3,
3,
4,
4,
4,
354
722
112
509
929
280
310
343
376
411
$ 2 1 ,0 0 0 ___________
$ 2 2 ,0 0 0 ___________
$ 2 3 ,0 0 0 ___________
$ 2 4 , 0 0 0 ___________
$ 2 5 .0 0 0 ___________
5,
5,
6,
6,
7,
357
807
264
744
224
446
484
522
562
602
1 Computed to the nearest dollar.
a Less than 60 cents.
TREASURY DEPARTMENT
Washington
F OR RELEASE, M O R N I N G NEWSPAPERS,
Sunday, O c t o b e r 26, IQ^l.
i o / 2 3 /4 1
—
-------------------
Press Service
No. 2S-20
As a c o n v e n i e n c e to taxpayers, S e c r e t a r y M o r g e n t h a u made
public t o d a y a folder, ‘’K n o w Y o u r T a x e s , " w h i c h shows at a glance
the a p p r o x i m a t e amount of i n d i vidual income taxes due next year
on 1941 salary and wag e incomes of s e l e c t e d sizes and the amount
of m o n t h l y savings n e e d e d to meet these payments.
A r r a n g e m e n t s h ave b e e n m a d e w i t h the Federal R e s e r v e banks
to f u r n i s h each c o m m ercial b a n k in t h eir district an ample
supply of these folders for e n c losure in the next statement of
accounts m a i l e d to depositors.
In addition, it is p l a n n e d to
include the f o l d e r in the D e c e m b e r " r e m i n d e r 1* to taxpayers
m a i l e d out b y their local C o l l e c t o r s of Internal Revenue.
B y u s i n g this simple guide, the S e c retary explained, a
taxpa y e r m a y ^ a s c e r t a i n w i t h a m i n i m u m of effort the p o r t i o n of
his m o n t h l y income h e must set aside r e g u l a r l y to meet next
year*s t a x payments.
The n e w t a x tables augment the easy savings plan i n a u g u
r a t e d last A u gust 1.
At that time the T r e a s u r y p l a c e d on sale
a n e w type of s e c urity k n own as T a x Savings Notes w h i c h enables
taxpayers to save s y s t e m a t i c a l l y and c o n v e n i e n t l y to meet next
year*s h i g h e r taxes.
T h ese notes b e a r interest w h e n u s e d in
payment of F e deral income taxes .and pr o v i d e the p u r c h a s e r w i t h
an investment in a d v ance to meet futu r e taxes.
In m a k i n g the announcement, S e c r e t a r y M o r g e n t h a u
r e i t e r a t e d his b e l i e f that it is e x t r e m e l y important for t a x
paye r s to b u d g e t their taxes in v i e w of the g r e a t l y i n c r e a s e d
levies, and e x p r e s s e d the h o p e that this n e w pla n w o u l d be
helpful.
The n e w tables disclose, for instance, that if your net
income for 19^1 is $ 5 >000 and you are a single p e r s o n w i t h no
dependents, you must save at the rate of $^0 every month, or
1 ^ 3 a year, for your Federal income taxes.
If you are m a r r i e d
but have no dependents, your savings for taxes shou l d amount
to $31 p er month, or $375 a year.
If you are m a r r i e d a n d have
one dependent, yo u must save $27 a month, or $323 a year.
If
you are m a r r i e d a n d hav e two dependents, you must save $23 a
month, or $271 a year.
If you are m a r r i e d and have three
dependents, you must save |lg p er month, or $219 a year, for
the pa y m e n t of Federal income taxes.
2-
,
,
Thf ^ e t a b l e s begin^ a t t h e l o w e s t t a x a b l e amount and
i n c l u d e income t a x c l a s s i f i c a t i o n s up t o n e t incomes o f
oon
a r e I s s u e d i n two s e r i e s , b o t h d a t e d August 1 , 1Q4 i
and
m a t u r i n g August X, 1 9 4 3 .
They c a n n o t be p r e s e n t e d i n payment
o f income t a x e s b e f o r e J a n u a r y 1 , 1 9 4 2 , an d .m u st be h e l d by
t h a t PDurDo = er ann1 Ta m
? 0 n t h s i f t h e y a r e t o be u s e d ^ o r
se rie s of n
o
t
1 ?£ ?ach year h e r e a f t e r , two new
s e r i e s o f n o t e s w i l l be p r o v i d e d so t h a t a t a x p a y e r can
a lw ay s p u r c h a s e n o t e s d u r i n g t h e e n t i r e y e a r in which he i s
? lu is s
(A copy Of t h e
ro r ™
ln
**3 - £ ? « £
“Know Your T a x e s 41 pamphlet i s e n c l o s e d )
-oOo-
¿r
which he considers warrant exemption.
The first general license of
this character was issued under date of October 16, signed by the Com
mandant of the Coast Guard and approved by Herbert E. Gaston as Acting
Secretary of the Treasury,
It provided for the free movement of vessels
except those falling into certain specified categories or others specially
segregated.
Its effect has been to require licenses for the movements of
TTnima
small vessels and small boats mUmm. where such activity is within 100 feet
of navy yards, arsenals and other prescribed types of waterfront property^
ri n 4.118 i interest nf na.ti onal ..def
( While there are many exceptions to the exemptions, and while at any
time more rigid enforcement may be immediately applied, the enforcement
_
at
_
,,.
__
present tHHPis of such a nature as t o ^ nt u r fWPirn?ulipai1aiiil
with legitimate and necessary activities in American ports.
Local enforcement of the new regulations for the movement of vessels
is under the direction of the Coast Guard officers already designated as
Captains of the Port in all the principal seaports of the
)
TREASURY DEPARTMENT
United States Coast Guard
Washington
FOR RELEASE, frFTEHNNOff PAPERS,
^-ggfoä&y. .October *84., 1941
i o / 23/41
2f
Press Service
No. 28-21
^Anchorage regulations for vessels in the navigable waters of the
United States, of far reaching significance as a national defense measure,
have 3 5 ^ been published by the, Treasury Department with the approval of
flu
s jUtsVMuJf- y f^
'CkjuxA^t C
Mk
the President.^ These have been followed by the granting of a general
license for the movement of certain classes of vessels^ by the Commandant
of the Coast Guard, under whose direction
Captains of the Ports
kL
throughout the country operate.
{^According to Rear Admiral Russell R. Waesche, Commandant^
"fhiopdj the new regulations will, if found necessary, prove a most effec-y
oybs, for
they place in the hands of the Coast Guard, the Federal maritime law en
forcement agency, the means of preventing ships from proceeding to or
remaining at docks, piers, and terminals where conditions are such that
the ship or her cargo could reasonably be considered to be in danger.
In order that the new regulations may not prove burdensome to ship
ping, they will be applied only in part^ except in such instances or at
such time as it may be necessary to invoke them in full.
To afford relief
from strict compliance with the regulations, the Commandant of the Coast
Guard has been empowered to issue general licenses to classes of vessels
&
a
«
m
Ü
TREASURY DEPARTMENT
U n i t e d S t a t e s C o a s t Guard
Wa shington
FOR RELEASE, MORNING NEWSPAPERS, .
S a t u r d a y , ’ O c t o b e r ' $ 5 , i 9 ^ 1 . _______
1 0 / 2 3A i
Press Service
No. 2 3 - 2 1
An ch or ag e r e g u l a t i o n s f o r v e s s e l s i n t h e n a v i g a b l e w a t e r s
o f t h e U n i t e d S t a t e s , o f f a r r e a c h i n g s i g n i f i c a n c e as a n a t i o n a l
d e f e n s e m e a s u r e , hav e been p u b l i s h e d by t h e T r e a s u r y Department
w ith the approval of the P r e s i d e n t .
The new r e g u l a t i o n s p e r m i t
t h e C o a s t Guard t o c o n t r o l f u l l y t h e movements o f v e s s e l s of
a l l types in h arb o rs of the United S t a t e s .
Thes e have bee n
f o l l o w e d by t h e g r a n t i n g o f a g e n e r a l l i c e n s e f o r t h e movement
o f c e r t a i n c l a s s e s o f v e s s e l s by t h e Commandant o f t h e C o a s t
Guard, u n d e r whose d i r e c t i o n C a p t a i n s o f t h e P o r t s t h r o u g h o u t
the cou n try o p e r a t e .
A c c o r d i n g t o R e a r Admiral R u s s e l l R. Waesche, t h e
Commandant, t h e new r e g u l a t i o n s w i l l , i f found n e c e s s a r y , p r o v e
a most e f f e c t i v e means of p r o t e c t i o n o f s h i p p i n g and s h i p p i n g
f a c i l i t i e s , f o r t h e y p l a c e i n t h e hands o f t h e C o a s t Guard,
t h e F e d e r a l m a r i t i m e law e n f o r c e m e n t a g e n c y , t h e means o f p r e
v e n t i n g s h i p s from p r o c e e d i n g t o o r r e m a i n i n g a t d o c k s , p i e r s ,
and t e r m i n a l s where c o n d i t i o n s a r e s u c h t h a t t h e s h i p o r h e r
c a r g o c o u l d r e a s o n a b l y be c o n s i d e r e d t o be i n d a n g e r .
I n o r d e r t h a t t h e new r e g u l a t i o n s may no t p r o v e b u rd e n
some t o s h i p p i n g , t h e y w i l l be a p p l i e d o n l y i n p a r t , e x c e p t
i n s u c h i n s t a n c e s o r a t s u c h t i m e as i t may be n e c e s s a r y t o
in vo k e them i n f u l l .
To a f f o r d r e l i e f from s t r i c t c o m p l i a n c e
w i t h t h e r e g u l a t i o n s , t h e Commandant o f t h e C o a s t Guard h a s been
empowered t o i s s u e g e n e r a l l i c e n s e s t o c l a s s e s o f v e s s e l s which
he c o n s i d e r s w a r r a n t e x e m p t i o n .
The f i r s t g e n e r a l l i c e n s e o f
t h i s c h a r a c t e r was i s s u e d unde r d a t e o f O c t o b e r l 6 , s i g n e d by
t h e Commandant o f t h e C o a s t Guard and a p p ro v e d by H e r b e r t E.
Gaston as A c t i n g S e c r e t a r y o f t h e T r e a s u r y .
I t provided fo r
t h e f r e e movement o f v e s s e l s e x c e p t t h o s e f a l l i n g i n t o c e r t a i n
s p e c if ie d c a te g o r ie s or others s p e c ia lly segregated .
Its
e f f e c t has been t o r e q u i r e l i c e n s e s f o r t h e movements o f s m a l l
v e s s e l s and s m a l l b o a t s where s u c h a c t i v i t y i s w i t h i n 1 0 0 f e e t
o f navy y a r d s , a r s e n a l s and o t h e r p r e s c r i b e d t y p e s o f w a t e r front property.
While t h e r e a r e many e x c e p t i o n s t o t h e e x e m p t i o n s , and
w h i l e a t any t i m e more r i g i d e n f o r c e m e n t may be i m m e d i a t e l y
a p p l i e d , t h e e n f o r c e m e n t a t p r e s e n t i s o f s u c h a n a t u r e as t o
r e s u l t i n minimum i n t e r f e r e n c e w i t h l e g i t i m a t e and n e c e s s a r y
a c t i v i t i e s i n Am erican p o r t s .
L o c a l e n f o r c e m e n t o f t h e new r e g u l a t i o n s f o r t h e movement
o f v e s s e l s i s u n d e r t h e d i r e c t i o n o f t h e C o a s t Guard o f f i c e r s
a l r e a d y d e s i g n a t e d as C a p t a i n s of t h e P o r t i n a l l t h e p r i n c i p a l
se a p o rts of th e United S t a t e s .
-oOo-
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Friday, October 24, 1941
Press Service
oo
oo
j
i'>i0 • C
TT _
The Treasury Department today announced the
amendment of General License Ko. 9 '.issued under the
freezing order and relating to the purchase and sale of
commodity futures contracts for the accounts of blocked
nationals.
The amended license permits transactions
only for the purpose of covering short positions or liqui
dating long positions taken prior to October 25, 1941.
-oOo-
TREASURY DEPARTMENT
O ffice of th e S e c r e t a r y
October 24, 1941
GENERAL LICENSE NO. 9 , AS AMENDED,
UNDER EXECUTIVE ORDER NO. 8 3 8 9 , APRIL
1 0 , 1 9 4 0 , ¿4.3 AMENDED, AND REGULATIONS
ISSUED PURSUANT THERETO, RELATING TO
TRANSACTIONS IN FOREIGN EXCHANGE, E T C .»
n e r a l L i c e n s e No. 9 i s amended t o r e a d a s f o l l o w s :
A general licen se
(l)
t h e bona f i d e purcha.se and s a l e
and o f e v i d e n c e s
is hereby gran ted a u th o r iz in g
o f commodity f u t u r e s
contracts
o f ownership o f a c t u a l com m o di ti es on an
e x c h a n g e o r b o a r d of tra.de w i t h i n t h e U n i t e d S t a t e s by oank—
ing i n s t i t u t i o n s w ith in t h e United S t a t e s ,
of n a tio n a ls
tions
of a n y b l o c k e d c o u n t r y ,
of such n a t i o n a l s ,
dealings
f o r the a c co u n t
pursuant to the i n s t r u c
and n e c e s s a r y t r a n s f e r s
or o t h e r
i n e v i d e n c e s o f ow n e r s h ip o f c o m m o d i t i e s ,
o f credi.it and. payments be tw een a c c o u n t s
tran sfers
i n ba n k in g i n s t i t u
t i o n s w i t h i n t h e U n i t e d S t a t e s : a s r e q u i r e d in c o n n e c t i o n
w i t h s u c h p u r c h a s e s o r sa .les o r b e c a u s e o f f l u c t u a t i o n s i n
th e m a rk e t v a l u e o f th e c o m m o d it i e s c o v e r e d by s u c n c on
tracts
o r e v i d e n c e s of o w n e r s h i p ,
provided t h a t :
(a)
No s u c h p u r c h a s e s h a l l be made e x c e p t f o r
t h e p u rp o s e of c o v e r i n g a s h o r t p o s i t i o n t a k e n p r i o r
t o O c t o b e r 2 5 , 1 9 4 1 , i n t h e a c c o u n t of t h e n a t i o n a l
f o r whom t h e p u r c h a s e i s made;
(b)
No s u c h s a l e s h a l l be made e x c e p t f o r t h e
* P a r t 1 3 1 ; - S e c . 5 ( b ) , 40 3 t a t . 415 an d 9 6 6 ; S e c . 2 , 48 S t a t
1 ; 54 S t a t . 1 7 9 ; E x . Orde r 8 3 8 9 , A p r i l 1 0 , 1 9 4 0 , a s amended.
by E x . Orc.er 8 7 8 5 , June 1 4 , 1941.j and E x . Order 8 8 3 2 , J u l y
2 6 , 1 9 4 1 ; R e g u l a t i o n s , A p r i l 1 0 , 1 9 4 0 , a s amended J u n e 1 4 ,
1 9 4 1 , and J u l y 2 6 , 1 9 4 1 .
- 2
-
p u r p o s e Of l i q u i d a t i n g a l o n g p o s i t i o n t a k e n p r i o r
t o O c t o b e r 2 5 , 1 9 4 1 , i n t h e a c c o u n t o f th e n a t i o n a l
f o r whom t h e s a l e i s made; and
(c)
In t h e c a s e of e i t h e r p u r c h a s e o r s a l e
net proceeds of the t r a n s a c t i o n a r e c r e d i t e d to a
b l o c k e d a c c o u n t i n t h e name of th e n a t i o n a l f o r
whose a c c o u n t th e t r a n s a c t i o n was e f f o o t e d and i n
t h e ban ki n g i n s t i t u t i o n w i t h i n t h e U n i t e d 3 t a t e s
wh ich m a i n t a i n s the a c c o u n t f o r wh ich th e t r a n s a c t i o n
was e f f e c t e d ,
(2)
Each b a n k in g i n s t i t u t i o n en g agin g in any t r a n s a c t i o n
h erein au th orized is required
to f i l e
promptly w ith th e
a p p r o p r i a t e F e d e r a l R e s e r v e B*nk mo nthly r e p o r t s
details
of each such t r a n s a c t i o n ,
o f t h e commodity f u t u r e s c o n t r a c t s
purchases or s a l e s ,
o r e v i d e n c e s o f ownership
the d ates
o f th e
t h e p e r s o n s f o r whose a c c o u n t t h e p u r
or s a l e s were m ad e,' the p r i c e a t
was made,
showing t h e
including a d e scrip tio n
o f a c t u a l c o m m o d it i e s p u r c h a s e d o r s o l d ,
chases
th e
which e a c h p u r c h a s e
th e name o f t h e e x c h a n g e o r b o a r d o f t r a d e
wh ich e a c h s u c h t r a n s a c t i o n was e f f e c t e d ,
on
and t h e n e t m ark et
p o s i t i o n i n t h e commodity i n q u e s t i o n o f t h e n a t i o n a l f o r
whose a c c o u n t t h e t r a n s a c t i o n was e f f e c t e d
before
such
t r a n s a c t i o n and a f t e r s u c h t r a n s a c t i o n .
E . H. FOLEY, J R ,
A c t i n g S e c r e t a r y o f th e T r e a s u r y
t r e a s u r y n m im m m
Washington
Fca BMSASS, M O W i m HE1SPAPERS,
fttwdy. October 88. 19A1
iV/27/41
p re ss Service
fc. ^
^ 3
The Secretary of the Treasury announced last evening that the tenders
for $150,000,000, or thereabouts, of 91-day Treasury bills, to be dated
October 29, 1941, and to nature January 20, 1942, which sere offered on
October 24, were opened at the Federal Reserve Banks on October 27*
The details of this issue are as followsi
Total applied for «* $269,407,000
Total accepted
- 150,010,000
Range of accepted bids* (excepting one tender of $10 ,000)
High
Low
Average price
~ 100,
- 99*973
- 99.903
Sqptvalsnfc «»be approximately 0*10? percant
•
•
•
0.06?
*
(73 percent of the aaount bid for et the low price was accepted)
TREASURY DEPARTMENT
Was hi n gto n
FOR RELEASE, MORNING- NEWSPAPERS,
T u es d ay , O c t o b e r 2 6 , 1 9 k l .
10/27/41
Press Service
No. 2 6 - 2 3
The S e c r e t a r y o f t h e T r e a s u r y announced l a s t
$ 1 5 0 , 000, 000, o r t h e r e a b o u t s ,
the te n d e rs f o r
b ills,
1942,
t o be d a t e d O c t o b e r 2 9 , 1 9 ^ 1 ,
evening t h a t
of 9 1 - h a y T r e a s u r y
and t o ma tur e J a n u a r y 2 6 ,
which were o f f e r e d on O c t o b e r 2 4 ,
were opened a t t h e F e d e r a l
R e s e r v e Banks on O c t o b e r 2 7 .
The d e t a i l s
of t h i s
Total applied fo r
Total accep ted
i s s u e a r e as f o l l o w s :
-
$ 2 6 9 ,4 0 7 *0 0 0
1 5 0 ,0 1 0 ,0 0 0
Range o f a c c e p t e d b i d s :
High Low
A ve r age
Price -
( e x c e p t i n g one t e n d e r o f $ 1 0 , 0 0 0 )
100.
99«973 Equivalent r a t e
9 9.983
"
"
approxim ately 0 .1 0 7 p ercen t
"
O.0 6 7
"
(7 3 p e r c e n t o f t h e amount b i d f o r a t t h e low p r i c e was a c c e p t e d )
-0O0-
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss*
Treasury Department Circular No* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue*
Copies of the circular may be obtained from any
Federal Reserve Bank or Branch*
-
2
-
Reserve Banks and Branches,,following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejec
tion thereof.
The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final.
Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on
November 5. 194-1_______ .
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here
after enacted.
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING NEWSPAPERS,,
Wednesday, October 29% 19A1
The Secretary of the treasury, hy this public notice, invites tenders
for $ 150,OOPjOOP
or thereabouts, of
91 -day Treasury hills, to he issued
on a discount basis under competitive bidding.
The hills of this series will
and will mature
February A,. 1942
he dated November 5, 194-1
Jafpic
when the face amount will he payable without interest. They will he issued in
hearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will he received at Federal Reserve Banks and Branches up to the
closing hour, two o lclock p
Eastern Standard time, Friday, October 31, 1%1
Tenders will not he received at the Treasury Department, Washington.
Each tender
must he for an even multiple of $1,000, and the price offered must he expressed
on the basis of 100, with not mors than three decimals, e. g., 99.925,
may not he used.
Fractions
It is urged that tenders he made on tfre pointed forms and for
warded in the special envelopes which will he supplied hy Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated hanks and
trust .companies and from responsible and recognized dealers in investment securi- I
ties.
Tenders from others must he accompanied hy payment of 10 percent of the
face amount of Treasury hills applied for, unless the tenders axe accompanied hy l
an express guaranty of payment hy an incorporated hank or trust company.
Immediately a.fter the closing hour, tenders will he opened at the
Federal!
Ì
TREASURY DEPARTMENT
Washi ng to n
FOR RELEASE, MORNING- NEWSPAPERS,
Wednesday, O c t o b e r 29» 19^-1.
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b l i c n o t i c e , i n
v i t e s t e n d e r s f o r $ 1 5 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , o f 91~&fiy T r e a s u r y
b i l l s , t o be i s s u e d on a d i s c o u n t b a s i s un de r c o m p e t i t i v e b i d d i n g .
The b i l l s o f t h i s s e r i e s w i l l be d a t e d November 5> 19*J-1> find w i l l
m a tu r e F e b r u a r y ¿J-, 1 9 ^ 2 , when t h e f a c e amount w i l l be p a y a b l e
without i n t e r e s t .
They w i l l be i s s u e d i n b e a r e r form o n l y , and
i n d e n o m i n a t i o n s o f $ 1 , 000, $ 5 , 000, $ 1 0 , 000, $ 1 0 0 , 000, $ 500, 000,
and $ 1 , 000,000 ( m a t u r i t y v a l u e ) .
T e n d e r s w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks and
B r a n c h e s up t o t h e c l o s i n g h o u r , two o f c l o c k p . m ., E a s t e r n S t a n
dard tim e, F r i d a y , October
19^1*
T e n d e r s w i l l n o t be r e c e i v e d
a t th e T r e a s u r y Department, Washington.
E ac h t e n d e r must be f o r
an even m u l t i p l e o f $ 1 , 000, and t h e p r i c e o f f e r e d must be e x
p r e s s e d on t h e b a s i s o f 1 0 0 , w i t h no t more th a n t h r e e d e c i m a l s ,
e. g ., 9 9*925.
F r a c t i o n s may not be u s e d , , I t i s u r g e d t h a t
t e n d e r s be made on t h e p r i n t e d forms and f o r w a r d e d i n t h e s p e c i a l
e n v e l o p e s which w i l l be s u p p l i e d by F e d e r a l R e s e r v e Banks o r
B r a n c h e s on a p p l i c a t i o n t h e r e f o r .
yi)
T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t from I n c o r p o r a t e d
banks and t r u s t com pan ie s and from r e s p o n s i b l e and r e c o g n i z e d
d e a l e rs in investm ent s e c u r i t i e s .
T e n d e r s from o t h e r s must be
ac co m p an ie d by payment o f 10 p e r c e n t o f t h e f a c e amount o f
T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s a r e ac co m p an ie d
by an e x p r e s s g u a r a n t y o f payment by an i n c o r p o r a t e d bank o r
t r u s t company.
I m m e d i a t e l y a f t e r t h e c l o s i n g h o u r , t e n d e r s w i l l be opened
a t t h e F e d e r a l R e s e r v e Banks and B r a n c h e s , f o l l o w i n g wh ich p u b l i c
announcement w i l l be made by t h e S e c r e t a r y o f t h e T r e a s u r y o f t h e
amount and p r i c e r a n g e o f a c c e p t e d b i d s ,
Those s u b m i t t i n g t e n d e r s
w i l l be a d v i s e d o f t h e a c c e p t a n c e o r r e j e c t i o n t h e r e o f .
The
S e c r e t a r y of the T reasu ry e x p r e s s l y r e s e r v e s the r i g h t to a c c e p t
o r r e j e c t any o r a l l t e n d e r s , i n whole o r i n p a r t , and h i s a c t i o n
i n any su c h r e s p e c t s h a l l be f i n a l .
Payment o f a c c e p t e d t e n d e r s
a t t h e p r i c e s o f f e r e d must be made o r c o m p l e t e d a t t h e F e d e r a l
R e s e r v e Bank i n c a s h o r o t h e r i m m e d i a t e l y a v a i l a b l e funds on
November 5 # 19^1*
The income d e r i v e d from T r e a s u r y b i l l s , w h e t h e r i n t e r e s t
o r g a i n from t h e s a l e o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l
n o t ha ve any e x e m p t i o n , as s u c h , and l o s s from t h e s a l e o r o t h e r
d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l n o t have any s p e c i a l t r e a t
ment, as s u c h , un de r F e d e r a l t a x A c t s now o r h e r e a f t e r e n a c t e d .
The b i l l s s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t , o r
o t h e r e x c i s e t a x e s , w h e th e r F e d e r a l o r S t a t e , but s h a l l be exempt
from a l l t a x a t i o n now o r h e r e a f t e r imposed on t h e p r i n c i p a l o r
i n t e r e s t t h e r e o f by any S t a t e , o r any o f t h e p o s s e s s i o n s o f t h e
U n i t e d S t a t e s , o r by any l o c a l t a x i n g a u t h o r i t y .
For purposes of
t a x a t i o n t h e amount of d i s c o u n t a t wh ich T r e a s u r y b i l l s a r e
-2
o r i g i n a l l y s o l d by t h e U n i t e d S t a t e s s h a l l be c o n s i d e r e d t o be
in terest.
Under S e c t i o n s
and 1 1 7 ( a ) ( l ) o f t h e I n t e r n a l
Revenue Code, as amended by S e c t i o n 1 1 5 o f t h e Revenue Ac t o f
1 9 ^1 , t h e amount o f d i s c o u n t a t which b i l l s i s s u e d h e r e u n d e r
a r e s o l d s h a l l n o t be c o n s i d e r e d t o a c c r u e u n t i l s u c h b i l l s s h a l l
be s o l d , re deemed o r o t h e r w i s e d i s p o s e d o f , and such b i l l s a r e
e x c l u d e d from c o n s i d e r a t i o n as c a p i t a l a s s e t s .
A cco rd in g ly , the
owner o f T r e a s u r y b i l l s ( o t h e r t h a n l i f e i n s u r a n c e c o m p a n i e s )
i s s u e d h e r e u n d e r need i n c l u d e in h i s income t a x r e t u r n o n l y t h e
d i f f e r e n c e b e t w e e n t h e p r i c e p a i d f o r suc h b i l l s , w h e th e r on
o r i g i n a l i s s u e o r on s u b s e q u e n t p u r c h a s e , and t h e amount a c t u a l l y
r e c e i v e d e i t h e r upon s a l e o r r e d e m p t i o n a t m a t u r i t y d u r i n g t h e
t a x a b l e y e a r f o r which t h e r e t u r n i s made, as o r d i n a r y g a i n o r
loss.
k-2
T r e a s u r y Dep artmen t C i r c u l a r No. ^ l g , as amended, and t h i s
n o t i c e , p r e s c r i b e t h e t e r m s o f t h e T r e a s u r y b i l l s and g o v e r n t h e
conditions of t h e i r is s u e .
C op ie s o f t h e c i r c u l a r may be
o b t a i n e d from any F e d e r a l R e s e r v e Bank o r B r a n c h ,
~o0o~
TREASUHT DBPAHTKEBT
Washington
yt
f o s m e d i a t e release,
t h M W t a v Octobor 30. m i .
P » «
7^0
Service
aj-
Secretary of the Treasury Morgenthau today announced the final subscription
and allotment figure« with respect to the current offering of 1 percent Treasury
Seri
Rotea of Serie« &-!$&&•
Subscription« and allotments were divided among the «eversi Federal Resero
Districts and the Treasury as follows:
Federal Reserve
District
Boston
lew Torte
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Ionia
Mlnw*p»lf »
Kansas City
Calla«
San Francisco
Treasury
TOTAL
Total Subscriptions
Received t r m Solders
of Reconstruction
finance Corporation
Rotes of Series F
9 1,020,000
227,079,000
1,51^,000
4,712,000
3,848,000
250,000
51,712,000
2,010,000
2,170,000
2,731,000
1,920,000
590,000
£ a L ---
I 5,887,000
132,008,000
5,7 a , 000
8,267,000
2,647,000
1,450,0(30
29,091,000 '
3,755,000
3,250,000
3,401,000
6,041,000
1,504,000
r _ 300*000
*203,02,000
w i0-000
»299,561,000
o
Total Subscriptions
Received from Holders
of Ccnocdlty Credit
Corporation Notes of
Series B____________
o
O
Total Subscrip
tions Received
(Allotted in
full)
» 6,907,0«
m
359,164,000
7,253,000
12,979,000
6,495,000
1,700,000
80,803,000 is
5,765^000 ftlis
5,00,000 listiti
6,132,000
7,961,000 «SCI
2,094,000 SII!
310.000
ill
TREASURY DEPARTMENT
Washington
Press Service
No. 22-25
FOR IMMEDIATE RELEASE,
Thursday, October 30« 19^1»
Secretary of the Treasury Morgenthau today announced the final subscription
and allotment figures with respect to the current offering of 1 percent Treasury
Notes of Series A-1946.
Subscriptions and allotments were divided among the several Federal Reserve
tomi!.
Districts and the Treasury as follows:
Federal Reserve
OH luL) District
Men tli
dli (tu,
i oi fit
^iT' Boston
||k New York
f
mi "
Philadelphia
5 Cleveland
Üh Richmond
£ Atlanta
I v,: Chicago
iW ■|St. Louis
WP
feiv Minneapolis
p> .Kansas City
Ip Dallas
|y■ San Franc isco
Treasury
JF
TOTAL
Total Subscriptions
Received from Holders
of Reconstruction
Finance Corporation
Notes of Series P
$
1 ,020,000
227,076,000
1 ,512,000
“
2,731.000
1 ,920,000
590,000
10,000
$299,561,000
-oOo-
Total Subscrip
tions Received
(Allotted in
full)
5,887,000
132 ,088,000
5,741,000
8,267,000
2,647,000
1,450,000
29,091,000
3,755,000
3 ,250,000
3 ,4o i ,000
6,o4i,ooo
1,504,000
$ 6 ,907,000
359,164,000
7,253.000
12,979,000
6 ,495.000
1 ,700,000
80,803,000
5 ,765,000
5,420,000
6 ,132,000
7 ,961,000
2 ,094,000
300,000
310,000
$ 203,422,000
$ 502,983,000
$
4,712,000
3,848,000
250,000
51 ,712,000
2 ,010,000
2 ,170,000
Total Subscriptions
Received from Holders
of Commodity Credit
Corporation Notes of
Series E
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Friday, October 31, 1941.
Press Service
No#
The Treasury announced today the denial of applications for licenses
authorizing the purchase of Silesian Holding Company by European interests.
The proposed transaction, applications covering which have been denied, would
have involved also a loan by such European interests to Silesian-American
Corporation.
Previous applications involving a similar transaction were denied
prior to the maturity on August 1, 1941 of the Silesian-American Corporation
bonds.
TREASURY DEPARTMENT
Was hing ton
Press Service
No. 2 S - 2 6
FOR IMMEDIATE RELEASE,
F r i d a y , O c t o b e r 31» 19^-1.
The T r e a s u r y announced t o d a y t h e d e n i a l of a p p l i c a t i o n s
*•** ¡« li, ;
'Hf-llj
for licen ses
a u t h o r i z i n g t h e p u r c h a s e o f S i l e s i a n Holding
1forUcamj
Company by E u ro pe an i n t e r e s t s .
® ìfiWìj*^|
c a t i o n s c o v e r i n g which have be en d e n i e d ,
Kii]j;
The p r o p o s e d t r a n s a c t i o n ,
a l s o a l o a n by su c h Eu ro pe an i n t e r e s t s
Previous a p p lica tio n s
would have i n v o l v e d
to Silesian-A m erican
a-Aiericui
Corporation.
tto n were desii
a c t i o n were d e n i e d p r i o r t o t h e m a t u r i t y on August 1 ,
& Corporitia
th e S i l e s i a n - A m e r i c a n C o r p o ra tio n bonds.
-oOo-
appli
involving a s im ila r t r a n s
19^1 of
TREASURY DEPARTMENT,.
Washington
jj
FOR IMMEDIATE RELEASE
JEhurcAay, October 30, 1941
/ " A
Press Service
No. *>% - 3-
3^
v
The Treasury announced today the denial of an
application to purchase Schering Corporation of Bloomfield,
New Jersey, by a group consisting primarily of employees of
that corporation*
TREASURY DEPARTMENT
Wa sh in gto n
FOR IMMEDIATE RELEASE,
F r i d a y , O c t o b e r 31» 19^-1 ♦
Press Service
No, 2 S - 2 7
The T r e a s u r y announced t o d a y t h e d e n i a l o f an a p p l i c a t i o n
to purchase Scherin g C orporation of B loom field ,
New J e r s e y ,
by
a group c o n s i s t i n g p r i m a r i l y o f em ployees o f t h a t c o r p o r a t i o n .
- o 0o~
TREASURY DEPARTMENT
Washington
FOB RELEASE, MORBXEG REWSPAPERS
Saturday. fforenber 1, 194,1«
ifl/31/ u
Press Se
2 ^ ^ £-
fhe Secretary of the Treasury announced. last evening that the tenders for
$150,000,000, or thereabouts, of 91-day Treasury bills, to be dated Hoveaber 5,
19A1, and to nature February 4, 1942, which were offered on October 29, were
opened at the Federal Reserve Banks on October 31*
The details of this issue are as follows:
Total applied for «* 1199,99®,000
Total accepted
- 150,090,000
Range of acceptod bids:
High
Low
Average price
- 100«
-
99*944 Equivalent rate approximately 0.222 percent
99*962
m
m
m
0.151
(52 percent of the amount bid for at the low price was accepted)
h* » y
w
**»t*
TREASURY DEPARTMENT
Washi ng to n
FOR RELEASE, MORNING NEWSPAPERS,
S a t u r d a y , November 1 , 1 9 4 1 , _____
10 / 3 1 A 1
Press Service
No, 22>-22>
The S e c r e t a r y o f t h e T r e a s u r y announced l a s t
evening t h a t
•**«?,I
th e t e n d e r s f o r $ 1 5 0 , OOO,0 0 0 ,
b ills,
1942,
or th e r e a b o u t s ,
t o be d a t e d November 5 , 1 9 4 1 ,
and t o m atu r e F e b r u a r y 4,
which were o f f e r e d on O c t o b e r 2 9 , were opened a t t h e
F e d e r a l R e s e r v e Banks on O c t o b e r
The d e t a i l s
itiljOÆp
0,1)11
of 9 1 -a a y T reasu ry
yim
o f t h i s i s s u e a r e as f o l l o w s :
T otal applied fo r T otal accepted
-
$133,33^,000
1 5 0 , 09$ , 0 0 0
Range o f a c c e p t e d b i d s :
aiiMfbi
High - 1 0 0 .
Low
9 9 .9 4 4 Equivalent r a t e
Av er ag e
Price 9 9 ,962
*
(5 2 p e r c e n t
a p p r o x i m a t e l y 0 .2 2 2 p e r c e n t
11
O . I 5I
H
o f t h e amount b i d f o r a t t h e low p r i c e was a c c e p t e d )
-oOo-
Hovember 7 » 19^1
STATUTORY DEBT LIMITATION
AS OF OCTOBER 31,1941
Section 21 of the Second Liberty Bond Act, as amended, provides that the
face amount of obligations issued under authority of that Act, nshall not exceed
in the aggregate $65 ,000 ,000,000 outstanding at any one time.M
She following table shows the face amount of obligations outstanding and the
face amount which can still be issued tinder this limitation:
Total face amount that may be
outstanding at any one time
$65,000,000,000
Outstanding as of October 3 1 * 19*41:
Intere3t-beari ng:
Bonds «•
Treasury
131.759.318.650
Savings (Haturity
value)*
6,654,365,61*2
Depositary
60,851,000
Adjusted Service
735.189,857
Treasury notes
Certificates of
indebtedness
Treasury bills
(maturity value)
$39,209.725.149
$10 ,934 ,126,975
2 .556 .550.000
1 .404 .367.000
14,895,043,975
$54,104,769,124
Matured obligations, on
which interest has ceased
Face amount of obligations
i 8 suable under above authority
l67.l49.050
54,271,918,174
,,
1 0 728 081.826
Reconcilement with Daily Statement of the United States Treasury
October 3 1 , 19*11
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act,
as amended
Deduct, unearned discount on Savings bonds (difference
between current redaction value and maturity value)
$54,271,918,174
1,260,400,134
Add other public debt obligations outstanding but not
subject to the statutory limitation:
Interest -bearing (Pre-War, etc*)
$
196,046,600
Matured obligations on which interest
has ceased
12 ,3*49,360
Bearing no interest
364,133,871
$53,011,518,040
total gross debt outstanding as of October 31. 1941
$53,584,047,871
572,529,831
•Approximate maturity value.
Principal amount (current redemption value)
according to preliminary public debt statement $5 ,393 ,965 ,508 .
0
O
November 4, 194l.
rtdejtfc
STATUTORY DEBT LIMITATION
AS OF OCTOBER. 51 r 19^1 ~
Vi
Section 21 of the Second Liberty Bond Act, as amended, provides that the
face amount of obligations issued'under authority of that Act, «shall not exceed
in the aggregate $65,000,000,000 outstanding at any one time.«
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitations
Total face amount that may be
outstanding at any one time
$65,000,000,000
Outstanding as of October 31» d94l?
Int e re st-be ari ng v
Bonds &
$31»759,313,650
Treasury
Savings (Maturity
6,651+, 365,61+2
value)*
60,851,000
Depositary
735,189,857
Adjusted Service
Treasury Notes
Certificates of
indebtedness
Treasury bills
(maturity value)
$33,209,725.1^9
$10,93!+, 126,975
2,556,550,000
l.i+oU, 367,000
Matured obligations, on
which interest has ceased
Face amount of obligations
issuable under above authority
14,895.043.975
$54,104,769,124
167,149,050
64.271,918,174
1 0 , 7 2 8 , 081,826
Reconcilement, with Daily Statement of the United States Treasury
October 3d, 19^1
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act,
as amended
Deduct, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
Add other public debt obligations outstanding but not
subject to the statutory limitation:
Interest-bearing (Pre-War, etc.)
$
196,046,600
Matured obligations on which interest
12 ,349,360
has ceased
364,133,871
Bearing no interest
Total gross debt outstanding as of October 31 » 1941
$54,271,918,174
1,26o ,4q o ,13H
$53,011,518,040
572,529,831
.$53,564,047,871
^Approximate maturity value. Principal amount (current redemption value)
according to preliminary public debt statement $5*393»965>508.
28—29
■dOo—
TREASURY DEPARTMENT
Was hin gto n
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, November 5> 1 9 4 1 .
11/4/41
Press Service
No. 2 8 - 3 0
Commissioner of Customs W. R* Johnson today issued the following statement
showing imports of distilled liquors and wines, and duties collected thereon,
covering August, 1941, with comparative figures for August, 1940, and July, 1941,
and the eight month periods ending AugustxSi 1941 and August 1940 respectively: ______
August
July
August
IT months ending August 31.
;______ 19hl_________ 191+1______
191+0
1951
DISTILLED LIQUORS |^ro2jJlJ\jallons):
Stock in Customs Bonded Warehouses at beginning
8,007,581
7,811,661
7,775,71*1
8,223,1*55
¡*,1*71*,317
Total Imports (Free and Dutiable)
1 , 150,060
961* , 1*21
1,187,033
7,223,159
10,795,625
Available for Consumption
9,157,61*1
8 , 71*0,162
15,1*1*6,611*
8,998,691*
15,269,91*2
Entered into Consumption (a)
853,31*8
727,953
503,721
7,113,1*1*7
6,757,791*
Exported from-Cuotomo Custody^
1*,6£8
* »1*93a , 578Stock in Customs Bonded Warehouses at end
8,300,58?
8,007,581
8,300,589
8,1*93,851*
8,1*93,851*
mo
STILL WINES (Liquid Gallons):
Stock in Customs Bonded Warehcyd^^
Total Imports (Free and Dutia
Available for Consumption
Entered into Consumption (a)
beginning
Eacpo-H-.Pd f-rnm rW+nmg-fin » l.nrtj— •
Stock in Customs Bonded Warehouses at end
SPARKLING WINES (Liquid Gallons):
Stock in Customs Bonded WarehouipS^at beginning
Total Imports (Free and D u t i a b ^ w J ?
Available for Consumption
Entered into Consumption (a)
B x p n r t .ftd
fV n m
f !n g + .n m g
H n .g + .riH y
Stock in Customs Bonded Warehouses at end
DUTIES COLLECTED ON:
Distilled Liquors
Still Wines
Sparkling Wines
Total Duties Collected on Liquor
Total Unties Collected -on Othor Cormoditiaa.
riM'ivmii.
r-lffip"
2,153,013
97,81*1*
2,250,857
98,273
1*93"
2,152,091
211*,693
322
215,015
3,629
li QO
210,887
$ 2,076,51*8
77,956
10,51*5
I .2,165,01*9
......
32 i31*6*186
«5^5^95
-A . 39;
(a) Including withdrawals for ship supplies and diplomatic use.
2,135,198
187,537
2,322,735
168,888
-83ir
2,153,013
218 ,621*
1,1*73
220,097
5,273
■ 13 1 211*.693
# 1,778,783
136,690
15,306
$ 1,930,779
3far>8lg>;POO
'rr& r
1,556,098
195,875
1,751,973
102,1*31*
-eer1,61*8,738
371,976
1,1*31
373,1*07
17,983
-85355,339
1,208,1*66
92,51*9
51,573
1,352,588
22,377.61*3
1,516,518
1 , 692,002
1,283,1*99
3 ,208,520
1 ,052,320
3,959,721
2,301*,070
-579 1 3 - 1
1,61*8,738
■t*,iqr
2 , 15 2 ,0 9 1
221,290
1+1,519
265,809
52,782
*2j11*0210,887
| 17,1*97,275
91*3,982
152,1*85
$ 18,593,71*2
28g, 971,61*1
2 ,676,222
376,71*6
272 ,161*
61*8,910
293,017
551*
355,339
$ 16,679,301
1,911*,196
869,916
f 19,1*63,1*13
TREASURY DEPARTMENT
Washington
I[FOR RELEASE, MORNING NEWSPAPERS,
Press Service
¡Wednesday, November 5. 19Al*
No* 28-30
11 /4/41
Commissioner of Customs W* R. Johnson today issued the following statement
showing imports of distilled liquors and wines, and duties collected thereon,
covering August, 1941* with comparative figures for August, 1940, and July, 1941*
August
19a
DISTILLED LIQUORS
(Proof Gallons)
Stock in Customs
Bonded Warehouses
at beginning*•••••
Total Imports (Free
and Dutiable)••••
Available for Consumption*•*••*•••
Entered into Con
sumption (a)*••**
Stock in Customs.
Bonded Warehouses
at end**•••••*««••
STILL WINES (Liquid
Gallons)
;S Stock in Customs
I Bonded Warehouses
; at beginning••••*«
: Total Imports (Free
and Dutiable)*«#*
Available for Consumption,••••«««*
Entered into Con—
sumption (a),«,#*
Stock in Customs
Bonded Warehouses
at end*«•**•**••«
SPARKLING WINES
(Liquid Gallons)
Stock in Customs
bonded Warehouses
July
1941
August
1940
8 months ending Aug* 31.'
I94I
1940
8,007,501
7*775*741
7*811,661
8,223,455
4,474*317
1,150,060
964*421
1,187,033
7,223,159
10,795,625
9,157,6a
8,740*162
8,998,694
15*446,614
15,269,942
853,348
727*953
503*721
7,113*447
6,757,794
8*300,589
8*007*581
8,493,854
8,300,589
8,493,854
2,153,013
2,135,198
1 ,556,098
1,516,518
1,283,499
97,844
187,537
195,875
1,692,002
2,676,222
2,250,857
2,322,735
1*751*973
3,208,520
3*959*721
98,273
168,888
102,434
1*052,320
2,304,070
2,152,091
2,153,013
1,648*738
2,152,091
1,648,738
214* 693
Total Imports (Free
and Dutiable.). *•****
322
Available for Con
sumption* *********
215*015
Entered into Con
sumption (a)*.*,«*
3,629
Stock in Customs
Bonded Warehouses
at end,««•#•«*«*•*
210,887
DUTIES COLLECTED ONi
I Distilled Liquors
$ 2,076,548
1 Still Wines
77,956
[ Sparkling Wines
10,545
f Total Duties Collected
on Liquor
$ 2,165*049
218,624
371,976
221,290
376,746
1*473
1*431
519
272,164
220,097
373,407
265*809
648,910
5,273
17,983
52,782
293*017
214,693
355,339
210,887
355.339
$1,778,783
136,690
$1,208,466
(a)
15,306
92,549
51,573
a,
$17,497,275 $16,679,301
943,982
1*914*196
869;916
152,485
■$1 ,930,779 $1 ,352,588 $18, »3,742 $19,463,a3
Including withdrawals for ship supplies and diplomatic use«
%
- 3 -
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue.
Copies of the circular may be obtained from any
Federal Heserve Bank or Branch.
£> o
o
-
2
-
Reserve Banks and Branches,,following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejec
tion thereof.
The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final*
Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on November 12, 1941________ ,
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here
after enacted*
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority*
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest*
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
TREASURY DEPARTMENT
ites
Washington
§|
¡bit
EOR RELEASE, MORNING NEWSPAPERS,
Wednesday« November 5» 194-1
.
The Secretary of the Treasury, hy this public notice, invites tenders
for $ 150,000,000
or thereabouts, of
9 1 ~ day Treasury bills, to be issued
on a discount basis under competitive bidding.
* e dated
November 12. 19A1
and will mature
The bills of this series will
ials
February 11, ,194g
when the face amount will be payable without interest.
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Ranks and Branches up to the
closing hour, two o ’clock p. m.f Eastern Standard time,
Friday, November M
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g.» 99.925.. Fractions
may not be used.
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tanders from others must be accompanied by payment of 10 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied Uy
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Feder?
i f f - 3,
fM
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday, EJpYember 5*
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b l i c n o t i c e *
i n v i t e s t e n d e r s f o r $ 1 5 0 ., 0 0 0 , . 0 0 0 , or t h e r e a b o u t s , o f 9 1 - d a y
T r e a s u r y b i l l s , t o be i s s u e d on a d i s c o u n t b a s i s un de r c o m p e t i
t i v e bidding»
The b i l l s of t h i s s e r i e s w i l l be d a t e d November
1 2 , 1 9 ^ 1 , and w i l l m atu r e F e b r u a r y 1 1 , 1 9 L2 , when t h e f a c e
amount w i l l be p a y a b l e w i t h o u t i n t e r e s t .
They w i l l be i s s u e d
i n b e a r e r form o n l y , and i n d e n o m i n a t i o n s of | l , Q 00, -§5 , 000,
$ 1 0 , 000, $ 1 0 0 , 000, $ 500, 000, and $ 1 , 000,000 ( m a t u r i t y v a l u e ) .
T e n d e r s w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks and
B r a n c h e s up t o t h e c l o s i n g h o u r , two o f c l o c k p . m-., E a s t e r n
S t a n d a r d t i m e , F r i d a y , November 7> 19^1 • T en d er s w i l l n o t be
r e c e i v e d a t t h e T r e a s u r y De p art m en t, W a s h in g to n .
Each te n d e r
must be f o r an even m u l t i p l e o f $ 1 , 000, and t h e p r i c e o f f e r e d
must be e x p r e s s e d on t h e b a s i s o f 1 0 0 , w i t h no t more t h a n t h r e e
decim als, e . g , , 99*925*
F r a c t i o n s may n o t be u s e d .
I t is
u r g e d t h a t t e n d e r s be made on t h e p r i n t e d forms and f o r w a r d e d
i n t h e s p e c i a l e n v e l o p e s which w i l l b e ' s u p p l i e d by F e d e r a l
R e s e r v e Banks o r B r a n c h e s on a p p l i c a t i o n t h e r e f o r .
T en d ers w i l l be r e c e i v e d w i t h o u t d e p o s i t from i n c o r p o r a t e d
banks and t r u s t companies and from r e s p o n s i b l e and r e c o g n i z e d
d e a le r s in investment s e c u r i t i e s .
T en d ers from o t h e r s must be
a c co m p an ie d by payment o f 10 p e r c e n t o f t h e f a c e amount o f
T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s a r e a c co m p a n ie d
by an e x p r e s s g u a r a n t y o f payment by an i n c o r p o r a t e d bank or
t r u s t company.
I m m e d i a t e l y a f t e r t h e c l o s i n g h o u r , t e n d e r s w i l l be opened
a t t h e F e d e r a l R e s e r v e Banks and B r a n c h e s , f o l l o w i n g which
p u b l i c announcement w i l l be made by t h e S e c r e t a r y o f t h e
T r e a s u r y o f t h e amount and p r i c e r a n g e o f a c c e p t e d b i d s . ' Those
s u b m i t t i n g t e n d e r s w i l l be a d v i s e d o f t h e a c c e p t a n c e o r r e j e c
tion th e re o f.
The S e c r e t a r y o f t h e T r e a s u r y e x p r e s s l y r e s e r v e s
t h e r i g h t t o a c c e p t o r r e j e c t any o r a l l t e n d e r s , i n whole o r
in p a r t , and h i s a c t i o n i n any suc h r e s p e c t s h a l l be f i n a l .
Payment o f a c c e p t e d t e n d e r s a t t h e p r i c e s o f f e r e d must be made
o r c o m p l e t e d a t t h e F e d e r a l R e s e r v e Bank i n c a s h o r o t h e r
i m m e d i a t e l y a v a i l a b l e funds on November 1 2 , 19^1.The income d e r i v e d from T r e a s u r y b i l l s , w h e th e r i n t e r e s t
o r g a i n from t h e s a l e o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l
no t have any exemption,,, as s u c h , and l o s s from t h e s a l e o r
o t h e r d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l no t ha ve any s p e c i a l
t r e a t m e n t , as such,, un der F e d e r a l t a x A c t s now o r h e r e a f t e r
enacted.
The b i l l s s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t , , o r ’ o t h e r e x c i s e t a x e s , w h e th e r F e d e r a l o r S t a t e , b u t s h a l l
be exempt from a l l t a x a t i o n now o r h e r e a f t e r imposed on t h e
p r i n c i p a l o r i n t e r e s t t h e r e o f by any S t a t e , o r any o f t h e
p o s s e s s i o n s o f t h e U n i t e d S t a t e s , o r by any l o c a l t a x i n g
authority.
F o r p u r p o s e s o f t a x a t i o n t h e amount o f d i s c o u n t a t
which T r e a s u r y b i l l s a r e o r i g i n a l l y s o l d by t h e U n i t e d S t a t e s
s h a l l be c o n s i d e r e d t o be i n t e r e s t . .
Under S e c t i o n s
and
k2
-2-
1 1 7 ( a ) ( l ) o f t h e I n t e r n a l Revenue Code, as amended by S e c t i o n
1 1 5 o f t h e Revenue Act o f 1 9 ^ 1 , t h e amount o f d i s c o u n t a t which
b i l l s i s s u e d h e r e u n d e r a r e s o l d s h a l l n o t be c o n s i d e r e d t o
a c c r u e u n t i l su c h b i l l s s h a l l be s o l d , redeemed o r o t h e r w i s e
d i s p o s e d o f , and s u c h b i l l s a r e e x c l u d e d from c o n s i d e r a t i o n as
cap ital assets.
A c c o r d i n g l y , t h e owner o f T r e a s u r y b i l l s
( o t h e r t h a n l i f e i n s u r a n c e c o m p a n i e s ) i s s u e d h e r e u n d e r need
i n c l u d e i n h i s income t a x r e t u r n o n l y t h e d i f f e r e n c e bet ween t h e
p r i c e p a i d f o r s u c h b i l l s , w h e th e r on o r i g i n a l i s s u e o r on sub
s eq u en t p u r c h a s e , and t h e amount a c t u a l l y r e c e i v e d e i t h e r upon
s a l e o r r e d e m p t i o n a t m a t u r i t y d u r i n g t h e t a x a b l e y e a r f o r which
t h e r e t u r n i s made, as o r d i n a r y g a i n o r l o s s .
T r e a s u r y Department C i r c u l a r No. 4l8>, as amended, and t h i s
n o t i c e , p r e s c r i b e t h e te r m s o f t h e T r e a s u r y b i l l s and g o v e r n th e
conditions of t h e i r is s u e .
C op ies o f t h e c i r c u l a r may be
o b t a i n e d from any F e d e r a l R e s e r v e Bank o r B r a n c h .
- 0O0-
-
10
-
b u m ; one place where men and women may work out their destiny in ways of
their own fashioning.
And we want it understood that while Hitler’s domain
reeks with blasphemy, America is one place where the Golden Rule, which is
the very essence of democracy, is respected as a sound principle upon which
to conduct human affairs.
America.
Oppressed, stricken people everywhere, have their eyes fixed upon
we
It is earnestly to be hoped that seeing the flame which/are re
solved shall be kept aloft, they may find heart for the struggle, however
long-deferred it must needs be, to reclaim the liberty which they have lost
and for which they yearn.
- 9 sufferings that have been visited upon so many other countries, and would
intensify their devotion, their allegiance to the principles of free govern
ment.
Should, however, the United States be left, through an Axis victory,
the only democratic stronghold in a dictator-dominated world, clearly there
is danger ahead, for coming generations particularly.
Can you not see the
economic pressure from without that would be waged, with increasing force as
years go by, by withdrawal of trade from this country and related means, while
clever agents would be boring within, seeking to indoctrinate the population
with their alien philosophy?
Unless the stamina of our people were like the
Hock of Gibraltar, there would be a little yielding of liberty here and a
little more there, until the time might come when this Government would be
unrecognizable as that which our forefathers handed down.
That angle to the present situation is rife with food for thought for every mother and father and serious minded patriot.
Our forefathers
established this government in the belief, to which every true American
subscribes, that it makes for the greatest happiness and material well-being
of the individual, and for his highest mental and spiritual development.
The foreign policy of our government in its entirety, is designed to
forestall war on our soil, and also such a calamity as this I suggest.
It
behooves us, therefore, whether or not as individuals we approve of every
feature of it, to let the whole w o ^ ^ k n o w that as a nation we stand back of
it with a solidarity that is uinshaks&le. ""'It is important that it be driven
into the mind of Hitler and his barbaric cohorts that we are determined that
this shall be one spot in the world where the light of liberty shall ever
- s-
Lady Reading which encompasses practically all feminine war-workers.
This
American organization has a host of women training for a multitude of
practical tasks, such as fire fighting, map reading, communication service,
nutrition study —
they even learn the mechanics of automobiles in mechanical
schools so they will be prepared not only to drive but to repair ambulances.
I have suggested in this little talk ways in which the war overseas
has already made its impact felt upon this
upon women directly and
indirectly, by its hurt to the whole American family.
In the back of my
mind, though, I am thinking of the long tomorrow of the country that our
children shall inherit, and their children after them.
And I am wondering
what this conflict, now tearing the Old World to pieces, is going to do to
the soul of America, its spiritual structure.
I cannot envisage your children
and mine, as victims of physical conquest on their own soil, cringing before
some tyrranical foreign overlord, afraid to vjoice aloud honest convictions,
lest giving offense, they bring down punishment upon their heads;
them stripped of all incentive to initiative and achievement.
much confidence in the fighting spirit, the character
"Ifor see
I have too
of our people, and
their resourcefulness.
Disregarding that revolting possibility for the moment, let us
consider a tremendous stake we have in the outcome of this foreign war.
I
have not in mind our economic interests, which indeed are vitally involved,
but the effect upon the American people in a psychological sense.
A
triumphant victory for the Allies would unquestionably stir the people here
to the depths of their souls with gratitude for escape from the frightful
7
Beferring again to women, I am thinking of another vital
way in which they can rise to the country*s need^as groups and
individuals; that is hy throwing their financial support back of the
Treasury’s undertaking to raise revenues for defense^ in addition to
taxes, b£ th3^K5gfc of defense
defense bonds__#nd
bondsand stamps,
st^mps.^ x
They can render monu-
mental service
a
S!t
nl,
’T'Pi'.i.I'lMuV
Wnmpn own
nwn outright
n n trip
tolilVvi
luui
luv. Women
60$ of this
nation’s wealth; about half of the stocks and bonds, and k o fi of the savings
accounts.
Scarcely one among us is so poor that she cannot invest some
savings in these securities, and thereby help the Government and herself at
the same time.
Stamps can be bought in denominations from ten cents
to five dollars, and the interest-bearing bonds from $18.75
$10,000.
It would not surprise me should it develop that the major portion of the
funds going ifcto these bonds were supplied by patriotic, thrifty women.
By no means are American women asleep at the switch while
•ehor
STT*.
the outside world is on fire and sparks are flying
Even now, alert to the plight of the old world^to the sufferings of
humanity and the uncertainties in our own country, they are mobilizing
their skills and energies in readiness for calls upon than to perform
all sorts of practical tasks; Government agencies- tfhe Civilian Defense
ft
organizations,ite and in each state, the Defense Councik^&ffers guidance.
f
The Red Cross, always in the vanguard, when human need calls, has women
at work making bandages, knitted garments, clothes of all kinds for the
needy, and in training for nursing.
The American Women’s Voluntary Services, 80,000 strong,
is another organization.
It parallels one in E n g l a n d b y
-
6-
presented, can greatly strengthen national morale, and stimulate allegiance
to the fundamentals of democracy.
Teachers, hy instilling these ideas
and ideals in the minds of youth can, through them, reach the family hack
in the home and thereby exert a far-flung influence, the value of which
cannot he measured.
When once we get all those people over the country who
have taken their liberty as a matter of course, like the air they breathe,
thinking in concert along these lines, it will mean the crystallization of
a public opinion that positively will not tolerate, in a crisis like this,
the blocking of industrial production for defense for days and weeks at a
time while labor leaders quarrel with one another over their conflicting
aims, and with business management over division of profits.
They will
not tolerate subordination of the safety of the country to the advancement
of group aims, whatever group or groups may be involved.
So strongly do I feel the importance of there being clearly
defined in the consciousness of citizens what the civil rights are which
are guaranteed to them, I should like to start a crusade to bring about the
teaching of the Bill of Bights in the public schools, just as the multipli
cation table is taught there, and the Lord*s Prayer in homes and Sunday
Schools,
Whoever was known to forget either in later, adult years!
I digress somewhat to say that when this worst of all wars
tbe world has known, has ended, the oncoming generation in all countries
will have a rocky road to tread at best during the long period of read
justment.
The responsibility now rests upon us to imbue our youth to the
limit of our power, with Americanism that can stand severe tests.
-
5
-
in their implications as to call for nationwide wholehearted rededication
on the
part of the citizens, to the great defense program which the
Government has launched*
We all know, and the world knows ^that its value!»
its efficacy depends largely upon the q>eed with which it is executed; in
other words, the speed with which we get into the hands of England and
Russia the guns, planes, food and clothes, which are allotted for shipment
to them*
The Chinese term for crisis, I am told, has two words^
meaning emergency and opportunity*
In this connection, I am thinking of
women and the power that is theirs to serve the needs of humanity at this
critical time*
We women are, if anything, articulate.
There are literally
millions of mentally alert, intelligent, well-informed women in this
country who are fully capable of arousing the entire public to a realization
of the deep significance of the multiplied bill ion-do liar} ^ all-out
defense effort; to a profound realization of what it is their Government
is trying to save for its citizens. ~ In other words, what the practical
effect -upon their lives would be should they lose their liberty.
What
a blight there would be to their* aspirations, what outrage to their
dignity should they lose the right of free speech, free assemblage, the
right to worship as they please, the right to work at tasks of their own
choosing and on their own terms, to accumulate property and enjoy it, and
to conduct their affairs generally according to their own liking.
My thought is that women, by upholding these ideals in their
daily conversations among their friends, and elsewhere as opportunity is
hundreds of thousands from business and professional careers, to risk their
lives in the air, in military planes, or take up arms in training camps
preparatory to the day when they may have to face the guns of an aggressor.
Already American women in multiplying numbers, mourn their
beloved dead, as reports come in of disasters, one after another, to our
ships on the high seas, and of disasters in the air, taking their toll of
human life*
We see the men of thie country, in the government, in busi
nesses large and small, in the field of labor, and a vast number of women
also, struggling with the valor of soldiers, straining their vitality to
the limit, to get the huge industrial machine of this country working at
top speed to produce for defense needs.
We, men and women, all of us, see poised above our heads a
tax burden ready to fall upon us with terrific weight; one so heavy as to
jolt us into the realization that Hitler is at our door-step in a bread-andbutter sense^at least.
Soon, I predict, we shall be wearing our old
clothes as a badge of honor and denying ourselves many a creature comfort
cheerfully that our men may have guns and planes, battleships and tanks.
Young people in many a home will be denied higher education by reason of
financial pinch occasioned by defense needs and the rising cost of living.
Already enrollments in colleges are sharply falling off, I am told.
Such, in general, are the penalties paid by us for this
wholesale war outside our borders —
disrupted homes, wrecked plans, upset
lives in every direction; hardships aplenty.
Disastrous depredations on the high seas in recent days the attack upon the Kearney, the sinking of the Reuben James are so serious
3
of women.
They live to perform their biological function in order to
increase the population of the Greater Germany, which, it is proposed
shall dominate the world.
That philosophy recognizes no right of woamp
to a voice in the determining of the kind of government under which her
children shall live, or conditions generally.
He would have a hard time, I must say, practicing his
philosophy on the American woman,
One can scarcely speak lightly of what appear to he his
fantastic ambitions, in view of the monstrous performances we have seen.
The facility with which the mighty war machine of Hitler
has swept over Europe, mowing down human life and stamping out liberty
in country after country in its path, would, it seems, disabuse the mind
of any American of the idea that it could not happen here.
The fact that the President has called for the colossal sum
of 13 billion dollars for lend-lease purposes alone, and that the Congress
has appropriated it^ shows how deadly earnest is their belief that our
security is imperiled^
d n d that the surest way to protect it is to assist
Engl and and Bussia with all the speed of which we are capable^ in the
overthrow of Naziism by sending them everything they need with which to
wage battle#
Regardless of whether invasion of our country by a foreign
power is ever accomplished or att«rrpted, already the impact of the
frightful happenings in Europe and in the Orient is being felt with in
creasing force on us in this country.
Already mothers see their sons, young wives and girls their
lovers and husbands, in whom their hopes are bound up, turning aside by
-
2
-
as we know, working in factories on munitions while the men go out to fight.
Look at the women of the Scandinavian countries - once
highly privileged citizens of advanced democracies.
The women of Finland
had achieved not only full political rights, hut outstanding recognition
as factors in the shaping of all the important affairs of their country.
How long, one wonders, will it he before these women regain the heights
they had reached.
The women of France, never very alive to the responsibility
that rested upon them as citizens of a free government, nonetheless basked
in its benefits.
My tongue cannot phrase the suffering which my mind
envisages among the women of France over the plight of their fair, once
highly-favored country.
On top of all the physical suffering, the ignominy
of serfdom, the blight to family life, the horror of seeing their innocent
men massacred to expiate offense to their conquerer, how stricken with
humiliation and sorrow they must be over the feeble resistance that was
given to the overthrow of their liberty.
Should Hitler bring England to her knees and be able ulticountry to overthrow our democracy^ the first
____ __
___
cks would doubtless be the women.
Can you see Hitler permitting women the freedom of action
now accorded them in our two countries?
Can you see him countenancing
the honor tnd recognition given them here not only as wives, mothers and
home-makers, but as participants in all other fields of effort they choose
to enter.
In the Nazi philosophy
/voujp Jf ^U.
0
v
1.
The War - Its Impact Upon the Women of a Democracy
The subject, you will agree, admits of many different ap
proaches*
It is elemental that impact upon the home is itself impact upon
woman, for the stability of the home - a symbol of the established order
that sustains family life - is woman*s supreme concern.
Let her once
sense danger to that stronghold and she will spring to its defense as
surely as the female animal in the jungle gives battle to protect her lair,
to
There is a sense, be sure, in which women as a distinct
element of society, stand to suffer special injury from a war-created situ>at ion.
Consider the women of Germany.
In the brief period following the
World War when it appeared that free government was in store for their
country, permanently, the women asserted their right as human beings to
express their opinion in public meetings on questions of the day, and to
conduct themselves generally as citizens of a free country.
fling at liberty was short-lived.
Their little
When Herr Hitler rose to power and
started his huge war machine, he put a stop to all that in short order.
i.
One of his first ruthless acts was to disband all women*s organizations;
\
to decree for them two vocations only - house work and farm labor; to deny
them higher education, by fixing a 5# limit to enroll in colleges and
universities.
Young women he sent to camps, to toughen them for child
bearing - had them sleeping on hard boards.
How he has them, of necessity,
* I Boss..3
'«Oppressed, stricken people everywhere have their eyes
fixed upon A m e r i c a s h e said» "It is earnestly to he hoped that^
seeing the flame which we are resolved i«^^^Taloft, they may
find heart for the struggle, however long f e t a M d e f e r r e d it
m|fst needs he, to reclaim the liberty which they have lost,and for
which they yearij^
Ross...2
“A triumphant victory for the Allies would unquestionably
stir the 9sm m it people here to the depths of their souls with
gratifude for escape from the frightful sufferings that have "been
visited uponjso many other countries, and \wDuld intensify
devotion to the principles of free government^
their
M rX /
*
“Should, however, the United States he left, -M m m tksx . through
Axis victory, the only Deomocratic stronghold^ in a dictatordominated world, clearly JwMflj^is danger ahead, for coming
generations, particularly* JkMMMfc
Can you not see the economic
pressure from without that would he waged.... while clever agents would
he horing within,seeking to indoctrinate the population with
their alien philosophy ?
“Unless the stamina of o^ir people were like the Rock of
Gibraltar, there would he a little yielding of liberty here> and
a. little more there, until the time might come when
is Government
would he unrecognizable as that which our forefathers handed down*“
Ross said the foreign policy of the Government is
--She called
designed to forestall war on our soil.
t millions of alert, intelligent, well-
upon the
inf ormed/women in this co'iiitry to rally the entire public to a
solidarity in its defense effort that will he
She
unshakable•
women to support that effort^ financially,
through purchasing^.efen6ejpnds^ by accenting the drastic
sacrifices required cheerfullyj
by contributing to the industrial
^expansion required^ and by enthusiastic support of
organ!gations, thU Red Cross, and other
services*
civilian de ense
voluntary
0
O
sfeslsaia^
PJI, r
V%sw
V
T t o
Reminding the women of the United States of t h e ^
a p f i V L& * £ <
m
¿ r - 3
a j
****
J
“long jiomorrow that our children shall inherit“^. Mrs. Nellie
x
. * * £ & & .
Tayloe Ross, director of the United States Mint, SiwiH^night
*
called upon
„
to gird w tfg ttg t for the spiritual testing
of the post-war period,
“I am wondering what this conflict, now tearing the old
world (bo nieces, is going to do to the p o v l of America^7, she said.
to^&ress was prepared for a forum on the subject,
“The American W o m a n and Her Responsibilities“^ at Stephens College,
~<Zj
^
Columbia,
on “The W ar— Its Impact Upon the Women of
Democracy^
Mrs. Ross chose to disregard, what she termed the “revolting
possibility** of German physical conquest of American soil, saying
ot envisage “your childrefl^ and mine—
that she could not
cringing
,
nnical, foreign over lor
before some tyran:
confidence in the fighting spirit, the character of our people, and
their resourcefulness“
• n f i k M &A/
m »n
’
ectTupon
Th^-*f5Jrector said her chief concern was the effedn^jupon
Ary
the American People in a psychological sense,
She emphasized the
tremendous stake Am^ican women have in the defeat of Hitleiism
by painting a ^¡¡¿e^t^pictiire of the oppression of womankind in
Germany and. the occupied countries.
T R E A S U R Y D E P A RTMENT
Washington
Press S e r vice
No. 2g~32
fl i FQ R RELEASE, M O R N I N G NEWSPAPERS,
(%,• Saturday, N o v e m b e r S, 19^-1.______
l i / 5/41
11/5/
R e m i n d i n g the w o m e n of the U n i t e d States
that
our c h i ldren shall
N e l l i e Tayloe Ross,
of the
"long t o m o r r o w
i n h e r i t 11 after the present w o r l d war,
D i r ector of the U n i t e d States Mint,
call e d upo n t h e m to g i r d themselves
Mrs.
last night
for the spiritual t e s t i n g of the
p o s t-war p e r i o d
”1 am w o n d e r i n g what this conflict, n ow te a r i n g the old w o r l d
to pieces, is g o i n g to do to the soul of A m e r i c a , M she said.
theold
Di r e c t o r Ross' address was p r e p a r e d for a forum on the subject,
"The A m e r i c a n W o m a n and Her R e s p o n s i b i l i t i e s , " at Stephens College,
.shesaid, Columbia, Missouri.
She spoke on "The W a r —
Its Impact U p o n the
W o m e n of a D emocracy."
bject,
Mrs. Ross chose to d i s r e g a r d what she term e d the "revolting
HessColiea: possibility" of G e rman physical conquest of Ameri c a n soil, saying
; that she c o uld not envisage "your chi l d r e n and mine —
cr i n g i n g b ethelosesof? f ore some tyrannical, f o r eign overlord,"
Against that prospect she
said she h a d "too m u c h c o n f idence in the fig h t i n g spirit, the char: acter of our people, and their r e s o u r c e f u l n e s s . "
The Mint D i r e c t o r said her chief concern was the effect of th
■ war u pon the A m e r i c a n people in a p s y c h o l o g i c a l sense.
She empha,
sized the t r e m endous stake A m e r i c a n w o m e n have in the defeat of
U|^ [ H i t l e r i s m by p a i n t i n g a v i v i d picture of the oppression of w o m a n k i n
..
in Germany and the o c c u p i e d countries.
"A triumphant v i c t o r y for the Allies w o u l d u n q u e s t i o n a b l y stir
the people here to the depths of their souls w i t h g r a t itude for es~
! cape fro m the f r i g h t f u l sufferings that have b e e n v i s i t e d u p o n so
■people,m a ny other countries, and w o u l d int e n s i f y their devotion to the p r i n
ciples of free g o v e r nment," Mrs. Ross declared.
"Should, however, the U n i t e d States be left, t h r o u g h Axis v i e I tory, the only Demo c r a t i c s t r o n g h o l d in a d i c t a t o r - d o m i n a t e d world,
r clearly there is d a nger ahead, for c o m i n g generations, parti c u l a r l y ,
çteiiw*® Can you not see the economic p r e ssure from without that w o u l d be
I w a g e d . ,.while clever agents w o u l d be b o r i n g within, s e e king to inHitt«#* d o c t rinate the pop u l a t i o n w i t h their alien philosophy?
"Unless the stamina of our p e o p l e w e r e like the R o c k of Gibi raltar, there w o u l d be a little y i e l d i n g of liberty here, and a
! little more there, until the time might come w hen this Government
| w o u l d be u n r e c o g n i z a b l e as that w h i c h our forefathers h a n d e d d o w n . "
Di r e c t o r Ross said the f o r eign p o l i c y of the Government is
; d e s igned to f o r e s t a l l war on our soil.
She c a lled u p o n the "millions
of alert, intelligent, well-i n f o r m e d " w o m e n in this country to r a lly
[ the entire public to a solidarity in its defense effort that will be
unshakable.
-
2-
She u r g e d women t o s u p p o r t t h a t e f f o r t , f i n a n c i a l l y , t h r o u g h
p u r c h a s i n g D ef en s e Bond s; by a c c e p t i n g t h e d r a s t i c s a c r i f i c e s
r e q u i r e d c h e e r f u l l y ; by c o n t r i b u t i n g t o t h e i n d u s t r i a l e x p a n s i o n
r e q u i r e d ; and by e n t h u s i a s t i c s u p p o r t o f c i v i l i a n d e f e n s e o r g a n i z a
t i o n s , t h e Red C r o s s , and o t h e r v o l u n t a r y s e r v i c e s ,
“Op p r ess ed , s t r i c k e n p e o p l e e v e r y w h e r e have t h e i r eyes f i x e d
upon A m e r i c a , “ s h e . s a i d .
“I t i s e a r n e s t l y t o be hoped t h a t , s e e i n g
t h e f la m e which we a r e r e s o l v e d s h a l l be k e p t a l o f t , t h e y may f i n d
h e a r t f o r t h e s t r u g g l e , however l o n g d e f e r r e d i t must needs b e , t o
r e c l a i m t h e l i b e r t y which t h e y have l o s t , and f o r which t h e y y e a r n . 1!
0O 0-
six-month contracts with Copper Range Company, Quincy Mining
Company and Isle Royale Copper Company callA for the purchase of the copper
produced in their Michigan mines at maximum prices of 15 and 16 cents a
pound.
These prices have been approved by the Office of Price Administration.
I Negotiations were conducted jointly by the Office of Production
Management, Office of Price Administration and the Procurement Division with
the three Michigan copper producers looking toward solution to the problem
resulting from the high cost of operations and the lucent ceiling price
fixed for the metal by the Office of Price Administration.
s with the companies « d M M t o the Procurement
Division will pay a price per pound equivalent to the "out-of-pocket cost”
of the producers for the six months period ended June 30> 1941> adjusted to
include a wage increase of $1 a day for each 8-hour shift and expenses
incident to the increase^ plus an additional cent a pound if the total price
per pound is lower than the cost of production during the contract period.
On the other hand, if the "out-of-pocket cost" per pound is lower during the
-£y'trv'vv''
contract period than the adjusted cost of production for the period^January 1
to June 30, 1941 > the price to be paid will be the cost of production during
the contract period plus fifty percent of the difference between the periods.
In no case will the price per pound exceed the maximum provided for in the con
tracts.
agreement
their operating costs below those prevailing during the first six months
Of 1941*
0
TREASURY DEPARTMENTS
Press Service
No* 7 - î ' S S
SLtt
Contracts for the entire copper output of three high-cost
Michigan p r o d u c e r s ^ have been signed, the Procurement Division « Mt a r
Mmfcmnw announced
$
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday. Novernoer 5, 1941
Press Service
No, 28-33
Contracts for the entire copper output of three "high-cost”
i Mvitim,
announced today.
The six-month contracts with Copper Range Company, Quincy
Mining Company and Isle Royale Copper Company call for the purchase
of the copper produced in their Michigan mines at maximum prices of
15 and 16 cents a pound. These prices have been approved by the
Office of Price Administration.
Negotiations were conducted jointly by the Office of production
Management, Office of Price Administration and the Procurement
Division With the three Michigan copper producers looking toward
solution to the problem resulting from the high cost of operations
and the 12-cent ceiling price fixed for the metal by the Office of
Price Administration.
Under arrangements with the companies, the Procurement Division
will pay a price per pound equivalent to the ,fout-of-pocket cost”
of the producers for the six months period ended June 30, 1941,
adjusted to include a wag© increase of $1 a day for each 8-hour
shift and expenses incident to the increase, plus an additional
cent a pound if the total price per pound is lower than the cost of
production during the contract period. . On the other hand, if the
""out-of-pocket cost” per pound is lower during the contract period
than the adjusted cost of production for the period from January 1
to June 30, 1941, the price to be paid will be the cost of produc
tion during the contract period plus fifty percent of the difference
between the periods. In no case will'the price per pound exceed the
maximum provided for in the contracts.
This agreement, Procurement Division officials pointed out,
provides an incentive for the producers to reduce their operating
costs below those orevailing
x
O during
O the first six months of 1941
-oOo-
Comparison of principal items of assets and lia b ilitie s of national banks - continued,
(in thousands of dollars)
------ --------
: Sept. 2*4,
:
19*41
•
•
. -...-
î
:
«
•
June 3 O*
19*41
;
;
î
Dec. 31, î Increase or decrease ; Increase or decrease
19*40 S since June 30. 19*41 : since Dec. 31. 19*40
-Amount .... : Percent
: Amount
• Percent
Deposits of individuals, partner
ships, and corporationsî
Time............ .......................... .
Postal Savings deposits.............
Deposits of U. S. Government.,,
Deposits of States & p o litical
subdivisions,........................
Other deposits (certified and
cashi ers * checks, e t c ,).,*••
B ills payable, rediscounts & other
$19,9*4*4,103
8 , 0*4*4,337
15,556
588,025
$19,19*4,051
8,0*42,313
16,352
52*4,585
$17,939,331
7,95*4,096
18,981
*487,728
$750,052
2,02*4
-796
6 3 , 14*40
3.91
.03
-*4.S7
2,578,267
6,957,718
2,529,179
6,591,6*45
2,358,230
6,575,298
*49, OSS
366,073
1 . 9*4
5.55
220,037
3S2,*420
*410 r 31*4 _____ *453.178 ____ 518,760
•**42. S6*4
38,538,320
37.351.303 —35.852.*42*4 . 1,187.017
-9 . *46
3.18
2.685T896
--- 7.
1 **49
^-7
362 . 5J
-*4.96
6,1*48
______ 1.177
196.6l
_____*23.
3.12
? figg.ggi
7 .li*
-6. *41
.23
-¿57
- 23,032
10.501
-12,531
*41,177
63
. 277
------ ^ ,**•
'»
------ 91.923
2,005
r
9,275
7,270
3,127
Other l i a b i l i t i e s ..,,, .
___ 3*45,190 ____363.186 ____ 3*42.013
-17.996
Total lia b ilitie s deluding
capital accounts....................... 38T892^785
3 L J l & £ k __ 36.197. 5 6 * 4 1 . 1 7 6 . 2 9 1
CAPITAL ACCOUNTS
Capital stock;
Preferred stock...........................
18*4, *4*41
172,625
-11,816
195,657
Common s to c k ..................................
1.3*42.081 - 1.338,9*42
1-331.580
3r139
Total............................................... 1,51*4,706
1,323,363
1,527,237
-3,677
Surplus...................................................
1,350,710
1,336,090
1*4,620
1,309,533
Undivided profits & reserves.....
Total capital accounts...........
accounts..
Eatio of loans to total deposits.
NOTE; Minus sign denotes decrease.
_Z62,9p5
3.628.321
73S.66S
3.598.1*41
.... 699,62s
__1^53.6,398
*42^5.21,106
29.76$
„ *41.31*4,635
29. 2*4$
-3ff,733 >962
27.97^
2*4.237
30.180
1.206,471
12 .0 9
1.09
3.2S
.8*4
2.92
$2,00*4,772
90,2*41
-3 , *425
100,297
—108 r*4*46
2.787.1*4*4
11. IS
1.13
-IS . 0*4
20.56
9 .3 3
5.82
-20-90
-11.77
------- -79
f.LJ—
-.82
.3.1*4
____9-0*4
3+v :t
2.60
7 ,0 1
Statement showing comparison of principal items of assets and liabilities of active national hanks as of
September 24, 1941, June 30, 194l and December 31, 19*40.
(In thousands of dollars)
Number of banks ................
Sept. 24, :
i
1941
t
•
5Tm
June 30,
1941
5,136
• Dee. 31,
5
•
•
1940
5.150
: Increase or decrease • Increase or decrease
: since June 30, 194l 5 since Dec. 31. 1940
•
: Percent
: Percent 1 Amount
« Amount
-.10
_
-19
-5______
-.37
ASSETS
Loans and discounts, including
rediscounts and overdrafts*•• .$11 ,470,256
U. S* Government securities:
3,593,247
Direct obligations...... *•*•
2,534,541
Obligations fully guaranteed.
Obligations of States and
2,068,091
political subdivisions.... ..
Other bonds, notes, and
1 ,606,133
debentures. ............... •*
Corporate stocks, including stock
208.946
of Federal Reserve banks.••••
15r005.958
Total investments.........
26.476.214
Total loans and investments
768,350
Currency and coin.............. .
Reserve with Federal Reserve banks i 7,931,842
6.441.946
Balances with other banks* *...*••
Total cash, balances with
other banks, including re
serve balances, and cash
items in process of
15.142. 138
collection*
902.754
Other assets...................
42.521.106
Total assets*........... .
$10,922,483
$10,027,773
$547,773
5*02
$1,442,483
14.38
8,856,499
2,279,453
7,658,549
2,094,056
-263,252
255,088
- 2.97
934,698
440,485
12.20
21.04
2,020,242
2,008,472
47,849
2.37
59,619
2.97
1,590,191
1,694,058
15,942
1.00
-27,925
” 5.19
212.905
A 463
51.164
598,937
58,892
480,059
Si *529
-2.14
____L _
2.31
-2.959
___1,337,912
___2.780.401
49,551
-55,072
-27.592
-4.21
9 «79__
11.73
6.89
-.69
.43
620.480
15.120.067
-12,946
918.082
39.733,962,,. lr206.471
4.27
-1.4l
22,071
-15.328
- S 2 .1 2 U &
»15....
— 1.67
208r409
14.954,794
25r877 *277
709,453
7,451,733
6,360.417
14.521.658
915.700
41.314.635
. 13r66Sr040
23,695.813
718,799
7,986,914
6.414.354
11.19
8.30
6.44
1.28
2.92
7.01
■
-
2
-
The capital accounts of national banks in September totaled $3,629,000
000.
This figure included unimpaired common capital of $1,3^2,000,000, pre
ferred stock of $173,000,000, surplus of $1,351,000,000, undivided profits of
$521,000,000 and reserve accounts of $2^2,000,000.
Total capital funds in
September were $30,000,000 higher than in June and $92,000,000 higher than at
the end of 19^0.
The percentage of loans and discounts to total deposits on September 2b
•
*
19^1, was 29.76, in comparison with 29.2U on June 30, 19Hi, and 27.97 on Decem
ber 31, 19IK).
TREASURY DEPARTMENT
Washington
FOR RELEASE. MORNING NEWSPAPERS,
P re s s Service
7 k 7 t'3 ‘l
v 1 L 6ans of national hanks outstanding in September of this year amounted to
nearly $1 1 ,500,000,000, it was announced today by Comptroller of the Currency
Preston Delano,
Returns from the call for September
2k, 19*4-1, covered the 5,131
active national banks in the United States and possessions.
Loans and discounts
reported were greater by $5*4-8,000,000, or 5 percent, than those reported by na
tional banks on June 30 , I9H1 , the date of the previous call, and showed an in
crease of $1,4*4-2,000,000, or 1*4- percent, over the amount reported on December
31 !
ty k o .
Investments by the banks in United States Government obligations; direct and
fully guaranteed, as of September 2*4-, I9U1 , aggregated $11,128,000,000.
Other
bonds, stocks and securities held totaling $3,878,000,000, including obligations I
of States and political subdivisions of $2,068,000,000, showed an increase of
$59*000*000 since the previous call,
,
The total assets on September 2*4- were $*4-2,521,000,000, in comparison with
$Ul,3 1 5 ,000,000 on Jtine 30, 19*U, and $39.73^.000,000 on December 3 1 , I9H0.
Deposits totaling $32,532,000,000, again higher than on any previous call
date, showed an increase of $1,187,000,000 over June, and an increase of $2,686,000,000 over December.
The deposits on the recent call date included deposits of
individuals, partnerships and corporations of nearly $28,000,000,000, of which
$19,9^,000,000 were demand and $8,0*^,000,000 were time deposits.
United States
Government deposits stood at $588,000,000, while deposits of States and politi
cal subdivisions totaled $2,572,000,000,
Deposits of domestic and foreign banks
aggregated nearly $7 ,000,000,000.
Bills payable, rediscounts and other liabilities for borrowed money of
,
over
$9 ,000,000 showed increases of $7 ,000,000 and $6 ,000,000Athree months ago and
nine months ago, respectively.
TREASURY DEPARTMENT
Washington.
FOR RELEASE, MORNING NEWSPAPERS,
Friday, November 7, 1941
Press Service
No. 28-34
IT 7 5 7 4 I
Loans of national banks outstanding in September of this year
amounted to nearly $11,500,000,000, it was announced today by
Comptroller of the Currency Preston Delano. Returns from the call
for"September 24, 1941, covered the 8,131 active national banks^in
the United States and possessions. Loans and discounts reported
were greater by $548,000,000, or 5 percent, than those reported by
national banks on June 30, 1941, the date of the previous call,
and showed an increase of $1,442,000,000, or 14 percent, over the
amount reported on December 31, 1940.
Investments by the banks in United States Government obligations,
direct and fully guaranteed, as of September 24, 1941, aggregated
$11,128,000,000. Other bonds, stocks and securities held totaling
$3,878,000,000, including obligations of States and political sub
divisions of $2,068,000,000, showed an increase of $59,000,000 since
the previous call.
ÜBgiS]
ziinermi
ir}l,i
H i0
,vW|'
The total assets on September 24 were $42,521,000,000, in com
parison with $41,315,000,000 on June 30, 1941, and $39,734,000,000
on December 31, 1940.
Deposits totaling $38,538,000,000, again higher than on any
previous call date, showed an increase of $1,187,000,000 over June,
and an increase of $2,686,000,000 over December. The deposits on
the recent call date included deposits of individuals, partnerships
-and corporations of nearly $28,000,000,000, of which $19,944,000,000
'were demand and $8,044,000,000 were time deposits. United States
Government deposits stood at $588,000,000, while deposits of States
and political subdivisions totaled $2,578,000,000. Deposits of
domestic and foreign banks aggregated nearly $7,000,000,000.
Bills payable, rediscounts and other liabilities for borrowed
money of $9^,000,000 showed increases of $7,000,000 and $6,000,000
over three months ago and nine months ago, respectively.
ml
i n-e
capital accounts of national banks in September totaled
$3,629,000,000. This figure included unimpaired common capital of
$1,342,000,000, preferred stock of $173,000,000, surplus of $1,351,000,000, undivided profits of $521,000,000 and reserve accounts of
$242,000,000. Total capital funds in September were $30,000,000 high
er than in June and $92,000,000 higher tnan at the end of 1940.
The percentage of loans and discounts to tot^.l deposits on
September 24, 1941, was 29.76, in comparison with 29,24 on June 30,
1941, and 27.97 on December 31, 1940.
Statement showing comparison of principal items of assets a n d liabilities of a ctiv e national banks as of
September 24, 1941, June 30, 1941 ana December 31 , 1940.
(In thousands of dollars)
: Sept. 24, : June 30,
1941
: IS k l
:
♦ .
•
3,-loD
5»131
Numb6v of ])eii1cs«#••#«•♦••*•••••••♦ •
ASSETS
• Dec. 31»
1940
:
: Increase cr
: since June 70, 1941 ¡since Dec. 31, 1940
¡ Percent
: Amount
: Percent ¡Amount
R
j *1RO
Loans and discounts, including
$1,442,483
5.02
rediscounts and overdrafts...... . '$1 1 ,470,256 $10,922,483 $10,027,773 $547,773
TJ. S. G-overnment securities:
934,69s
-2.97
7 ,658,549 - 263,252
8,856,499
.
8,593.247
Direct obligations...... .
440,485
255.088
11 .19
2 ,094,056
2,279,453
2.534,541
Obligations fully guaranteed.... .
Obligations of States and
47,849
59,619
2,008,472
2.37
2,020,242
2,068,091
political subdivisions......... .
Other bonds, notes, and
1.00
-87,925
1,694,058
15.942
1,590,191
1 ,606,133
debentures........ .......... •• .
Corporate stocks, including stock
-8,959
-4,463 . -2.14
208,409
212,905
203t946
of Federal Deserve banks..... .. .
1,777,918
.34
51,164
13,668,040
14,954,79^
Total investments.......... . . 13.005,958
2,780,401
2.31
23.695.813 *”598,937
25,877,277
Total loans and investments... . 26,^76,214
8.30
49,551 ”
58,892
709.458
718,799
768,350
Currency and coin......... .
-55,072
6.44
7,986,914
480,059
7.931.842
7 ,451.783
Reserve with Federal Reserve banks..
1.28
27.592
6»4l4,354
81,529
6,360,417
6,441,946
Balances with other banks........• .
Total cash, balances with
other banks, including re
serve balances, and cash
items in process of
22,071
620,480
4.27
15 ,120,067
. 15,142,138
14,521,658
collection
-15,728
-12,946
-i.4a
918,082
915,700
902.754
Other a s s e t s . •
2.92.. 2,787,144
39.733,962 1,206,471
41,314,635
.. 42.521,106
TotaX assets..•«•
*
14.38
12.20
21.04
2.97
-5.19
-4 .21
9.79
11.73
6.89
-.69
.43
.15
- 1.67
7.01
.
Comparison of principal items of assets and liabilities of national banks — continued.,
(In thousands of dollars)
Sept. 24, : June 30» • ^ec- 31.
i Qin
i
1 Q4l
1941
:
decrease : Increase or decrease
• Increase or
: since June 30, 1941 : since Dec. 31* 1940
: Amount
: Percent
Amount
: Percent
LIABILITIES
Deposits of individuals* partner
ships, and corporations.:
$750,052
Demand* ••••••• ***~
•• ••• $19,944,103 $19.19^.051 $17,939,331
2,024
7
,
954,096
8,042,313
8.044,337
Time* •*•••••»•«•
.***.* *•••••
18,981
-796
16,352
15.556
Postal Savings deposit a*.««..*... •••♦•
63,440
487,728
524,5S5
588,025
Deposits of U. S. Government..... .
Deposits of States & political
49,088
2.358.230
2,578,267
2,529.179
subdivisions, *.*«.. .*-.***** •*.*••
6,591.645
6,575.298
366,073
Deposits of banks.*•***•*****•••• •• •6,957.7is
Other deposits (certified and
-42,864
5 1 s , 760
453,178
4io , 314
cashiers' checks, etc, )**»*. ...
37,351,303 35.852.424 1,187,017
Total d e p o s i t s . **.*„-.**.....• 38,538,320
Bills payable, rediscounts & other
7.270
3.127
2,005
liabilities for borrowed money. ••
9.275
17,996
363,186
342,013
3
)
4
.
5
,190
Other liabilities.**** .*-**«•** * *••••
Total liabilities excluding
37,716,1+9** 36.197,564 1,176,291
3S.892.7S5
capital accounts.........••••
CAPITAL ACCOUNTS
Capital stock:
184,441
195,657 -11*816
172,625
Preferred stock***...«.«*****••••
1,331,580
3,139
1.33S,942
1,3)4-2,081
Common stock,.•**..• •* .***.*** *. •
-8,677
1,527.237
1
,
514,706
1 .523.383
Total....... ....... ♦
••••
14,620
1 ,336,090 1,309,533
1 ,350,710
Surplus.
699,628
24,237
738,668
762.905
Undivided profits & reserves.** .•••
30,180
3,598,l4l
3,536,393
3,628,321
Total capital accounts**.*.. •.«•
Total liabilities & capital
42,521,106
4l,3l)+,635 39*733.96201,206,471
accounts••. •* ..*•*• *** •• * , •
29.24^
27.97S&
29.7 &b
Jlatio of loans to total deposits.
NOTE: Minus sign denotes decrease.
-4 .87
12.09
$2,004,772
90,241
-3.^25
1100,297
11.18
1. 13
-18.04
1.94
5.55
220,037
382,420
9.33
-9.46
3.18
-108,446
2,685,896 .
362.59
-4.96
6,148
5,177—
3-91
.03
3.12
2,695,221 _
-6.4l
- 23,032
10.501
-12.531
41,177
63.277 91,923
.23
-.57
1.09
3.28
2.92
2.787.144
20.56
5.82
-20.90
7.49
...
196.61
*93
..
7.45
-11.77
.79____
—.82
3*14
9.04
2.60
7 .0 1
//
o
fl
(~ 7 S U u ^
>x-r
VO J
* £ id 2 k
The Bureau of Customs announced today the following figures
showing the quantities of coffee entered for consumption during the
quota year ended September 30, 1941, under the quotas provided for
in the Inter-American Coffee Agreement, proclaimed by the President
on April 15, 1941.
Entered for
Country of Production
Revised Quota 1 /
Consumption
___________________________(Pounds)_____________ (Pounds)
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory countries
1,285,106,049
435,277,855
27,636,689
11,054,702
16,581,987
20,727,517
82,910,068
73,928,131
38,000,514
2,763,642
65,637,203
26,945,812
3,454,520
58,037,021
49,055,084
1,285,060,961 4/
434,852,877
27,629,250
10,999,975
16,565,652
20,695,991
76,663,845
73,829,717
38,002,521
2,489,888
62,246,981
23,973,412
3,454,700
83,230,862
if
y
y
y
y
y
y
y
ii
ii
y
y
49,031,609 y
1/ Quotas increased by Inter-American Coffee Board, effective August
11, 1941.
2/ Quota not filled.
3/ Quantity entered for consumption during the period October 1,1940, to
April 15, 1941, inclusive.
4/ The quota quantity was authorized for entry on the basis of the
quantities shown on entries as filed by importers. The quantity
actually imported was later determined by customs officers.
(Prepared
N
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
F r i d a y , November 7 . 194-1.
Press Service
No. 2 8 - 3 5
The B ur eau o f Customs announced t o d a y t h e f o l l o w i n g f i g u r e s
showing t h e q u a n t i t i e s of c o f f e e e n t e r e d f o r consum ption d u r i n g t h e
q u o t a y e a r ended September 3 0 ,
194-1,
under t h e q u o ta s p r o v i d e d f o r
i n t h e I n t e r - A m e r i c a n C o f f e e Agreement,
„
on A p r i l 1 5 ,
p r o c l a i m e d by t h e P r e s i d e n t
19^1*
tot
in
¡L
C ou nt ry o f P r o d u c t i o n
R e v i s e d Quota 1 /
__________ ;_____________________
(Pounds )______________
if
.
I
Dominican R e p u b l i c
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
V e n e z u e la
53,037,021
N on-signatory co u n trie s
^9 , O5 5 , 0 3 1)-
Li ' ä 1 1
ä
Entered fo r
Consumption
(Pounds )
«V-»
4-9 , 0 3 1,6 0 9 4 /
1/
Quotas i n c r e a s e d by I n t e r - A m e r i c a n C o f f e e B o a r d , e f f e c t i v e
August 1 1 , 194-1.
2/
Quota n o t f i l l e d .
_2/ Q u a n t i t y e n t e r e d f o r consu mpti on d u r i n g t h e p e r i o d O c t o b e r 1 ,
194-0, t o A p r i l 1 5 , 194-1, i n c l u s i v e ,
The q u o t a q u a n t i t y was a u t h o r i z e d f o r e n t r y on th e b a s i s of
t h e q u a n t i t i e s shown on e n t r i e s as f i l e d by i m p o r t e r s .
The q u a n t i t y
a c t u a l l y im p o r t e d was l a t e r d e t e r m i n e d by cus tom s o f f i c e r s .
\y
i
0O0—
J
TREASURY DEPARTMENT
Washington
fo r
m
m
m
,
horning
n ew spa per s
P ress
,
Service
Z ? -3 (o
The Secretary of the Treasury announced last evening that the tenders for
$150,000,000, or thereabouts, of 91-day Treasury bills, to be dated Novem
ber 12, 1941# sad to
her 5,
m ere
m a tu re
February 11# 1942, which sere offered on Nerve»-
opened at the Federal Reserve Banks
on
November 7*
The details of this issue are as foUosst
Total applied for — $313#335,000
Total accepted
- 150,018,000
Range of accepted bidet (excepting two tenders totaling $110,000)
High
lorn
Average price
- 99*960
- 99*938
- 99*950
Equivalent rate approximately 0*079 percent
»
*
•
0.245
*
*
*
*
0.200
*
(71 percent of the amount bid for at the low price was accepted)
TREASURY DEPARTMENT
Was hing ton
FOR RELEASE; MORNING NEWSPAPERS,
S a t u r d ay,. November 8 , 1 9 4 1 , ______
11/7/41
Press Service
No. 2 8 -3 6
The S e c r e t a r y o f t h e T r e a s u r y announced l a s t
the ten d ers f o r $ 1 5 0 ,0 0 0 ,0 0 0 ,
b ills,
1942,
or th ereab ou ts,
t o be d a t e d November 1 2 ,
1941,
e v e n in g t h a t
of 91-day T reasury
and t o m atu r e F e b r u a r y 1 1 ,
which were o f f e r e d on November 5 ,
were opened a t t h e
F e d e r a l R e s e r v e Banks on November 7*
The d e t a i l s
of t h i s
i s s u e a r e as f o l l o w s :
T otal app lied f o r - $313>335>000
T otal accepted
L 150,018,000
Range o f a c c e n t e d b i d s :
( e x c e p t i n g two t e n d e r s t o t a l i n g
$110,000)
High - 9 9 . 9£0 E q u i v a l e n t r a t e a p p r o x i m a t e l y 0 , 0.79 p e r c e n t
Low
- 99.938
"
"
"
0.24-5
"
Avera ge
P rice ~ 99.950
”
«
"
0,200
"
(7 1 percent
o f t h e amount b i d f o r a t t h e low p r i c e was a c c e p t e d )
3
Control*
When the tools were found in the New York warehouse of a
freight forwarder, the information was brought to the attention of an
I
needed the tools to eliminate a bottleneck
aircraft manufacturer
in
production line#
On the request of a representative of the
aircraft manufacturer, Foreign Funds Control acted to make the tools
immediately available#
By telephone, terms of sale were arranged with
the freight forwarder and he was informed a license to sell would be
issued immediately#
Within the hour the license was issued and within
two days the machines had been shipped to the factory, set up and
placed in operation#
-
2
-
By withholding action upon applications to export or dispose of
strategic materials, the Foreign Funds Control has prevented the
materials from leaving the country or from going into non-defense
industries until the defense agencies could arrange for their requisi
tion or purchase»
In this way a large quantity of spruce wood suitable for air
plane manufacture, held for French account, was directed to American
manufacturers*
Foreign Funds Control licensed the sale of the material
to aircraft manufacturers on the basis of 0FM*8 priority ratings»
Foreign-owned prefabricated steel ship building parts,
ship building materials and copper were made available to the Navy.
A load of zinc arrived in New York, destined for non-defense use»
By informing OPM, Foreign Funds Control was able to insure the de
livery of the zinc to a firm needing it for defense uses»
Machine tools held for a blocked account were speedily turned
to American aircraft production through the efforts of the Foreign Funds
~)tò
/ / / f/v ?
¿S - 37 1
Secretary Morgenthau revealed today that the Treasury Depart-
ment, through its Division of Foreign Funds Control, has directed stra
tegic materials valued at many millions of dollars into America*s vast
defense effort»
In administering the President*s Executive Order which
o
American assets of continental Europe, Japan, and China
lu
J
z j
Le Foreign
Funds Control discovered stores of copper, aluminum, ship building
materials, airplane spruce, and other vita^Lefense materials, held for
"blocked* interests*
Banks have been required to report bills of lading, warehouse
receipts, and other documents of title held by them for blocked accounts«
In addition, applications for licenses to dispose of the property or to
pay storage fees and other charges have revealed the existence of
foreign-owned defense materials in this country»
Early in the summer of 1940 a procedure was worked out for
passing on this information to the appropriate defense agencies, such
as
T R E A S U R Y D E P A RTMENT
Washington
FOR R E L E A S E , M O R N I N G NEWSPAPERS,
Monday, N o v e m b e r IQ, 19^-1._______
ll/S/41
Press Service
No., 22-37
S e c r etary M o r g e n t h a u r e v e a l e d today that the Treas u r y Depart
ment,
t h r o u g h its D i v i s i o n of F o r e i g n Funds Control,
has d i r e c t e d
strategic m a t e r i a l s v a l u e d at m a n y m i l lions of dollars
A m e r i c a ’s vast defense
into
effort,
In a d m i n i s t e r i n g the P r e s i d e n t ’s Executive Order w h i c h
"froze" the assets of c o n t i nental Europe, Japan, and China in the
U n i t e d States, the Foreign Funds Control d i s c o v e r e d stores of
copper, aluminum, ship b u i l d i n g materials, airplane spruce, and
other vital de f e n s e materials, h e l d for "blocked" interests.
Banks hav e b e e n r e q u i r e d to report bills of lading, w a r e
house receipts, and other documents of title h e l d by t hem for
b l o c k e d accounts.
In addition, applications for licenses to
d i s pose of the p r o p e r t y or to pay storage fees and other charges
have r e v e a l e d the existence of f o r e i g n - o w n e d defense materials in
this country.
Early in the summer of 19^0 a p r o c edure was w o r k e d out for
p a s s i n g on this info r m a t i o n to the appr o p r i a t e defense agencies,
such as the O f fice of P r o d u c t i o n Management, the Army, the Navy,
Lend-Lease, and the Proc u r e m e n t Division,
By withholding^action
u pon a pplications to export or d i s pose of strategic materials,
the Foreign Funds Control has p r e v e n t e d the materials from
l e a v i n g the c o u n t r y or fro m going into non-defense industries
until the defense agencies could arrange for-their r e q u i s i t i o n
or purchase.
In this w a y a large q u a ntity of spruce w o o d suitable for
airplane manufacture, h e l d for F r e n c h account, was d i r e c t e d to
A m e r i c a n m a n u f a cturers.
Foreign Funds Control l i c e n s e d the sale
of the ma t e r i a l to aircraft m a n u f a c t u r e r s on the basis of 0PM*s
pr i o r i t y ratings,.
Foreign- o w ned p r e f a b r i c a t e d steel ship b u i l d i n g parts,
ship b u i l d i n g ma t e r i a l s and copper were made available to the
Navy.
A l o a d of zinc a r r ived in N e w York, d e s t i n e d for n o n
defense use.
By inf o r m i n g 0PM, F o reign Funds Control was able
to insure the d e l i v e r y of the zinc to a firm n e e d i n g it for
defense uses..
M a c h i n e tools h e l d for a b l o c k e d account were speedily
t u r n e d to A m e r i c a n aircraft prod u c t i o n t h r o u g h the efforts of the
Foreign Funds Control.
W h e n the tools were found in the N e w Y o r k
2-
war e h o u s e of a freight forwarder, the information- was brought to
the attention of an aircraft m a n u f a c t u r e r who needed the tools to
eliminate a b o t t l e n e c k in the p r o d u c t i o n line.
On the request
of a r e p r e s e n t a t i v e of the aircraft manufacturer, Foreign Funds
C o n t r o l .acted to make the tools i m m e d i a t e l y available.
By
telephone, terms of sale w ere a r r anged w i t h the freight forwarder
and he was in f o r m e d a license to sell w o u l d be issued immediately.
W i t h i n the h o u r the license was issued and w i t h i n two days the
machines h a d b e e n s h i pped to the factory, set up and p l a c e d in
operation.
- 0O 0
D-3
- g -
which Uncle Sam will make upon your income by setting aside a ’
c e r t a i n amount o u t o f y o u r b u d g e t i w j
month.
e v e r y p a y d a y , o r every
Make your money earn interest for you by buying Tax
Savings TTnti i in1Wm 1
These notes may be purchased by apply
ing at any bank or savings and loan association which will be
glad to order them for you from the Federal Reserve bank in
your district.
The thought of higher taxes is never a pleasant one, but
is there another spot in the world today where the people are
asked to make so few sacrifices?
On three continents of the
earth soldiers are constantly on the march.
The world’s ag
gressor nations are robbing their weaker neighbors of all they
possess.
If by saving a little money now or by paying higher
taxes we can guarantee for ourselves the preservation of
cu m
liberty and democracy and th o other ideal's which we prize so
highly, we shall indeed be paying a small price.
egn *"tr"put— a
~
T
priceless possessions.
save for them —
now.
h
e
s
e
Ymr m r -i-
freedoms we have are
L e t ’s keep them, jbcfe-’-fl.ftcur, let
D-3
-
7
and thrift, those of us who have bought p a f tax notes regu
larly in the months before March 15th, will find it easy to
pay our. bill/.
The tax collector will simply credit us with
the amounts we have invested in Tax Savings Notes,
the balance,
if any, may be paid in cash, and we shall have the added ad
vantage of earning Interest on our moimy,
hope _yi
ast important
point. Taxes ar^*, after all, tlpr first charge
<ln a person's income.
ordinary purchases,
tning else.
We c§«rmot say of theijpf as we^pafi say/of
t h a t ^ e will use oui^oney^first for sojne-
We are o^aiged by law to j f a r f z h e s e
taxes on thie
appointed day, and/there are penaljWres for those who do not
report their ir^omes,
po
who misp^pg^t them, or who fail, wilfully
pay t h e ip /ta x e s on the appointed day.
Ltion these disagreeable facts only becaus e the Tai
jSavlng/ Notes are the b e e V p o s s i b l e insurance for paying tAes
/
r
j
I wish to
tkAo
emgrggftL
-
.
pro/iptly.
- ~
~
™ ~ ... —
.y
appeal particularly to the women of America^*«.
at .fiaaas ■nil
HZbu are the ones who do most
of the worrying about family budgets.
It is you who will be
called upon next March to strain your family budget in order
to meet the income tax till.
Fortify yourself against the call
D -3
- 6
denominations of $2 5, $50* and $100 each.
say e v e r y payday, one a month, or every
be purchased now,
quarter, and used to pay next y e a r ’s taxes.
almost 2 percent a year;
method of saving,
They yield
so aside from being a convenient
they are a good investment.
If you expect
to pay a hundred dollars a year in income taxes, you can buy
apply those notes against your tax bill when it is due.
For larger taxpayers,
notes, is available.
another series, known as Series B
These notes gyp
i
i n .doneminatiens
,■.....
yield about one-half
^ ^ tA -^ C A T
of one percent.
Few -of— yo "d wi-i
up "CO if1, '¿UU W yearyL—
M
1-1-6■;—
AA A
-M A ty < 4t,
t^ke-%hire---4ower-“-return,
T"n
l.uamnunt
upon mFirlt n l ntwtirm Find nuncibr.r
»CAAtAf
'lAA^A-* -(L
When AMarch
15th comes
around,, we Aa».g-.A l l ' 1
A
S
9
-
v
.
ived for. tax^Tia^m^rr^ by means of the
Tax Savings Notes.
Those of us who
and-wteo
have failed to plan for tax collection day may have a hard time
tS> meev our obligations.
We may wake up a week before March
15th and begin to worry about how to raise the money which will
become due on that day.
But those of us who have had foresight
wmmmmmmmm
These notes may
D-3
-
5 -
Recently the Treasury published a small folder called
“Know Your Taxes” .
The tables in it show at a glance the
approximate amounts which various taxpayers will owe their
Government next year on this y e a r ’s incomes.
In another
column is shown how much you will need to save every month
to meet those payments.
Going further than that,
the folder
suggests an Important way of saving to pay the higher income
taxes, doing it regularly and systematically with the-leastamount of trouble^-and strain on yeirn— ae-nthlry—budgets.
This
method is called the Tax Savings Plan.
The Treasury hopes that employers will distribute this
folder, or its contents, to their employees in order that they
may know now what monthly saving is necessary to provide for
tax payments next year.
Copies may be secured from the Federal
Reserve Bank in your district or direct from the Treasury in
Washington.
The Tax Savings Plan was instituted in August of this year
as a convenience for all income tax payers.
to you briefly.
Let me explain it
The plan is based upon a new type of security
called Tax Savings Notes.
These are being offered in two dif-
D -3
- K
they will be required to make during 19^2.
Those millions
who will file tax returns for the first time and the many
others who will find their assessments increased several
times above those of this year must be prepared to meet
their quarterly instalments when they fall due.
Let me give
you a few examples of just what these higher levies will
mean in your budget next year.
If you are a married man
having no dependents and- earnl.ng^a-^aJLary of
$J,pOO
a year,
SV\JLs{?
Or if you* ays- earni ng
your tax bill next year will be
’
,000 a year, your income taxes next year will amount to
$2*4-9.
If you are a single oerson ea s i n g $3,000 a year,
your next y e a r ’s asseaaaisnt will be $3# 1»» These examples
will serve to illustrate the sharply increased strain which
will be placed on millions of American incomes by the recently
increased taxes.
.
/
The Treasury wanfrfl you
take -»toto consideration now
the method by which you will be best able to pay fcfe&s increased <reiitrlbu&kett*”^trgd
7
^
-Trf-Lyuui1 Guirernment .
It
is extremely important for all of us to look ahead and to start
saving now, every payday or every month,
so that when the tax
payment dates roll around, you will be well prepared to meet
the bill Uncle Sam will then hand you.
D-3
- 3 -
Now there are many ways by which the Government can help
check this rise in the cost of living.
One way is to gather
in this extra purchasing power that is bidding for goods which
are not available.
variety of ways.
The Treasury is trying to do this in a
The most effective, of course, is by taxation.
About fifty percent of our total expenditures this year will be
In this way, we are helping to check inflation,
we are helping to meet the huge costs of defense, and, in addi
tion, we are paying as we go for as much as possible of our
current expenditures.
It has been a great source of encouragement and pni»do to
us at the Treasury to see the willingness with which the
/
American people have accepted these new and heavy tax burdens.
Almost everybody agrees that taxes are necessary to pay for
our defense expenditures and that they will help to keep the
cost of living down.
But very few of us, I believe, have
begun to consider how these taxes are to be paid when they
become due on the 1 5 th of next March.
We say that we are
willing to pay higher taxes, yet so few of us know how much
we shall have to pay.
Many are going to be surprised unless
they look into the matter before that date.
We in the Treasury want to acquaint every American tax
payer with the facts about the new income tax payments which
D-3
- 2 -
The rising cost of living l~s, of course, -omr-trf the ■
is caused, in part, by the fact
that we as a Government are spending billions of dollars for
production of the weapons that we need for our defense.
Our
Government is now spending on defense at the rate of more
than $13 billions a year —
a figure so enormous that none
of us can comprehend it unless we reduce it to the point
where it represents spending over $ 5 7 °
every second.
This
expenditure in turn is going into higher wages and produces
greater employment, and means that we as a people <3W '"'the
w)&&& have more to spend than we nave ever had before.
At the same time, the volume of things we can buy with
these increased earnings is shrinking.
Our factories are
producing more tanks and guns, and fewer ice-boxes and radios.
Some things that we could customarily buy are fast becoming
scarce on your storekeepers' shelves.
The result is that all
of us are trying to buy a larger volume of goods than there
is available.
Consequently, we are bidding against one another
for the everyday things of life.
That is the reason why the
cost of living is now rising so fast that it is b-rgl nning-fro
af f e ot/tfee budget of every housewife,
of every consumer of
goods, and of every family in this land.
y
B 5 5 L
rv
D-3
November 7> 19^1
Before coming to the studio tonight I took another look
at the charts we keep in the Treasury to show us the cost of
living.
I found that they told a more serious story for all
of us than at any time since the period of swiftly rising prices
in the last World War.
They showed that the dollar you and I
spent on food in the summer of 1 9 3 9 would buy only eighty-four
cents worth today.
They showed that the dollar we spent on
clothing would buy only ninety cents worth today.
They showed
that the cost of living generally had gone up by almost ten
y & u X tu + jK ^
/
percent
erf
sac L
more than seven percent -$&
the- la fff“Bu ven saaatn s •
You who are listening tonight do not need any charts to
tell you that the cost of living is going up and going up fast,
You learn
every time you go to your grocery store, every
time you buy clothing for yourselves or your children, every
time you pay a household bill.
You are finding that rising
prices are taking a cut out of your income just as surely as
if you were taxed Jgj^the same amount.
I think you are entitled
to ask why this state of affairs exists and what the Government
is doing to check it.
I
D -4
-7-
yourself against the call which Uncle S am will stake upon your
income b y setting aside a certain amount out of your budget every
payday, or every month.
Make your m oney earn interest for
you by buying Tax Savings Notes.
These notes m a y be purchased
by applying at any bank o r savings and loan association which
will be glad to order them for you from the Federal Reserve
bank in your district.
The thought of higher taxes is n ever a pleasant one, but
is there another spot in the world today where the people are
asked to make so few sacrifices?
On three continents of the
earth soldiers ere constantly on the maroh.
The world*s
aggressor nations are robbing their weaker neighbors of all
they possess.
If b y saving a little money n ow or by paying
higher taxes we can guarantee for ourselves the preservation
of liberty and democracy and all that we prize so highly, we
shall Indeed be paying a small price.
are priceless possessions.
them —
These freedoms we have
L e t ’s keep them, l e t ’s save for
now.
—OOO"*
u-1
can b u y a $25 T a x Note ©very quarter fr o m your current Income
and apply those notes against your tax bill when It is due*
For larger taxpayers, another series, known as Series B
notes,
is available*
percent*
These notes yield about one-half of one
However, I know that most of us will be interested
in the Series A notes which are acceptable for tax payments
up to #1,200 in any one year*
Wh e n March 15th comes around, we will feel much more
comfortable if we have saved for our taxes b y means of the Tax
Savings Notes*
Those of us who have failed to plan for tax
y m a y have a ha r d time in meeting our obligations*
We may wake up a week before March 15th and begin to worry
.
about how to raise the mo n e y wh i c h will become due on that day/
But those of us who have h ad foresight and thrift, those of
ua who have bought tax notes regularly in the months before
March 15th, will find it easy to pay our tax bill.
The tax
collector will simply credit us wi t h the amounts we have
invested in Tax Savings Notes,
the balance, if any, may be paid
in cash, and we shall have the added advantage of earning
interest on our money*
I w i s h to appeal particularly to the women of America*
Yo u are the ones who do most of the worrying about family budgets.
It is you who will be called upon next March to strain your
family budget in order to me e t the income tax bill*
Fortify
D-4
-5-
Government next year o n this y e a r ’s incomes*
In another
column Is shown how m u c h you will ne e d to save every month
to meet those payments*
Going further than that, the folder
suggests an Important w ay o f saving to pay the higher income
tax e s f doing it regularly and systematically*
This method is
called the Tax Savings Plan*
The Treasury hopes 4 5 5 ? employers will distribute this
folder, o r its contents,
to their employees in order that they
may know now what monthly s a v i n g g ^ ^ d e c e a s a r y to provide for
tax payments next year*
Copies may he secured from the Federal
Reserve Bank in your district or direct from the Treasury in
Washington*
The Tax Savings Plan was instituted in August of this year
as a convenience for all income tax payers*
to you briefly*
Let me explain it
The plan is based upon a n e w type of security
called Tax Savings Notes*
These are being offered in two
different series, available thorough your neighborhood bank or
savings and loan association*
The smaller, o r Series A, notes
are Issued in denominations of $25, f 50, an d $100 each*
These notes may be purchased now, say every payday, one a
month, or every quarter, and used to pay next y e a r ’s taxes*
They yield almost 2 percent a year; so aside from being a
convenient method of saving, they are a good investment*
If
you expect to pay a hundred dollars a year in income taxes, you
D-4
•..If'
-■
-4~
^ ^
>,
will be required to make during 1942*
Those millions who
will file tax returns for the first time end the many others
who will find their taxes increased several times above those
of this year must be prepared to m e e t their quarterly instalments
when they fall due*
Let me give you a few examples of just
what these higher levies will m e a n in you r budget next year*
If you are a married m an having no dependents wi t h a net
income of $3,500 a year, your tax bill n e x t year will be
$186*
Or if yo u r n e t income Is #4,000 a year, your income
taxes next ye a r will amount to $249*
If you are a single person
with a n et income of #3,500 a year, your ne x t year* s tax will
be $284*
These examples will serve to illustrate the sharply
increased strain which will be placed on millions of American
incomes b y the recently Increased t a x e s */
The Treasury believes you should/bonsider n o w the method
by whi c h you will be best able to pay these increased taxes*
It Is extremely important for all o f us to look ahead and to
start saving now, every payday or every month, so that when
the tax payment dates roll around, y o u will be well prepared
to mee t the bill Uncle B a m will then han d you.
Recently the Treasury published a small folder called
"Know Your Taxes"*
The tables in it show at a glance the
approximate amounts w hich various taxpayers will owe their
R S I
i I M 1 imra^SH^imBfli« M WltliM vlffiMXgm
fii
D-4
-3-
How there are many ways by which the Government can help
check this rise in the cost of living*
One wa y is to gather
in this extra purchasing power that is bidding for goods which
are not available*
variety of ways*
The Treasury is trying to do this in a
The mo s t effective, of course, is by taxation*
About fifty percent of o ur total expenditures this year will be
met from taxes.
In this way, we are helping to check inflation,
we are helping to meet the huge costs o f defense, and, in
addition, we are paying as we go for as much as possible of our
.*/ 3
current expenditures*
It has been a great source of encouragement to us at the
Treasury to see the willingness with which the American people
have accepted these n ew and heavy tax burdens*
Almost everybody
agrees that taxes are necessary to p a y for our defense
expenditures and that they will help to keep the cost of living
down*
But very few of us, I believe, have begun to consider
how these taxes are to be paid when they become due on the
15th of next March*
W e say that we are willing to pay higher
taxes, yet so few of us know how m u c h we shall have to pay.
Many are going to be surprised unless they look into the
matter before that date*
We In the Treasury want to acquaint every American taxpayer
with the facts about the n e w income tax payments which they
jpp
D-4
The rising cost of living is caused,
in part, by the fact
that we as a Government are spending billions o f dollars for
production of the weapons that we ne e d for our defense.
Our
Government is n o w spending on defense at the rate of more than
|18 billions a year —
a figure so enormous that none of us
can comprehend it unless we reduce it to the point where it
represents spending over |570 every second.
This expenditure
in turn is going into higher wages and produces greater
employment, and means that we as a people have more to spend
in the aggregate than we have ever h ad before.
At the same time, the volume of things we can buy with
these increased earnings is shrinking.
Our factories are
producing more tanks and guns, and fewer ice-boxes and radios.
Some things that we could customarily b uy are fast becoming
scarce on your storekeepers1 shelves.
The result is that all
of us arp trying to b uy a larger volume of goods than
Is?available.
l'
Consequently, we are bidding against one another
for the everyday things of life.
That Is the reason why the
cost of living Is now rising so fast that It is affecting the
budget of every housewife, of every consumer o f goods, and
of every family in this land.
B efo re
I took another look
at the charts we keep In the Treasury to show us the cost of
living.
I found that they told a more serious story for all
of us th e n a t any tim e since the period of swiftly rising prices
in the last World War#
They showed that the dollar you end I
spent on food in the summer of 1959 would b uy only eighty-four
cents worth today#
They showed that the dollar we s p e n t on
clothing would b uy only ninety cents worth today.
They showed
that the cost of living generally had gone up b y almost ten
percent since the outbreak o f this w a r , of w h ich more than
seven percent has been
Y o u who are listening tonight do n o t ne e d a ny charts to
tell you that the cost of living is going up and going up fast.
You learn this every time you go to your grocery store, every
time you buy clothing for yourselves or your children, every
time you pay a household bill.
You are finding that rising
prices are taking a cut out of your income just as surely as
If you were taxed the same amount.
I think y ou are entitled
to ask why this state of affairs exists and what the Government
is doing to check it.
f\i
TREASURY DEPARTMENT
Wa.s'hington
%/W
FOR RELEASE, MORNING NEWSPAPERS,
b ~
Press Service ^
No.
2-r-.
//o//r
V
(The following address by Daniel V/y/Bell, Under Secretary
of the Treasury, is scheduled to Joe broadcast by Station
Washington, D, C.,*at frpSft* p.m.-, Eastern Standard
Time,
I]all;
i :x
/ f ¥/.
T R E A S U R Y DEPARTMENT
Washington
F OR RELEASE, MORNING- NEWSPAPERS,
Sunday, N o v e m b e r 9, 19^1.
i w
Press Service
No. 2S-3S
t i -------------------(The f o l l o w i n g address by Daniel W f Bell, U n der S e c r etary
of the Treasury, is sch e d u l e d to be b r o a dcast by Station
WRC, Washington, D. G., and the R e d N e t w o r k of the
N a t i o n a l B r o a d c a s t i n g C o m pany at 10:15 p. m . , E a s tern
S t a n d a r d T i m e , S a t u r d a y , N o v e m b e r g>, 19^-1.")
Befo r e l e a v i n g my office today I too k another loo k at the
charts we k e e p in the Tr e a s u r y to show us the cost of living.
I found that they told a more serious
at any time
since the p e r i o d of swiftly r i s i n g prices
last W o r l d War.
The y
food in the summer of
today.
They
story for all of us than
showed that
in the
the dollar you and I spent on
1939 w o u l d b u y only eighty-four cents w o r t h
showed that the dollar we spent on cloth i n g w o u l d
b u y only ninety cents w o r t h today.
The y showed that the cost
of l i v i n g g e n e r a l l y h a d gone up by almost
o u t break of this war,
ten percent
since the
of w h i c h more than seven percent has b een
since last February.
Y o u w h o are l i s t e n i n g tonight do not need any charts to
tell you that the cost of l i v i n g is g o i n g up and g o i n g up fast.
Y o u learn this every time you go to your grocery store, every
time you b u y c l o t h i n g for yourselves or your children, every
time you pa y a h o u s e h o l d bill.
Y o u are finding that r i s i n g
prices are t a k i n g a cut out of your income just as surely as if
you wer e t a x e d the same amount.
I t h i n k you are e n t itled to ask
w hy this state of affairs exists and what the Government is
d o ing to c h eck it.
The r i s i n g cost of living is caused, in part, by the fact
that we as a G o v e rnment are sp e n d i n g b i l l i o n s of dollars for
p r o d u c t i o n of the iveapons that we n e e d for our defense.
Our
Government is now spend i n g on defense at the pate of more than
$12> billions a year — - a figure so enormous that none of us can
com p r e h e n d it unless we reduce it to the point where it
represents s p e n d i n g over $57° every second.
This expenditure
in turn is g o i n g into h i g h e r wages and produces greater
employment, and means that we as a people have more to spend in
the aggregate than we have ever h a d before.
-2At the same time, the volu m e of things we can b u y w i t h
these inc r e a s e d earnings is shrinking.
Our factories are
p r o d u c i n g more tanks and guns, and fewer ice-boxes and radios.
Some things that we could c u s t o m a r i l y b u y are fast b e c o m i n g
scarce on your s t o r e k e e p e r s 1 shelves.
The result is that all
of us are t r y i n g to b u y a larger v o l u m e of goods than is
a c t u a l l y available.
C o n s e q u e n t l y 9 we are b i d d i n g against one
a n o ther for the e v e ryday things of life.
That is the r e a s o n
w h y the cost of l i v i n g is now r i s i n g so fast that it is a f f e c t i n g
the budget of every housewife, of every c o n sumer of goods, and
of every fami l y in this land.
N o w there are m a n y ways b y w h i c h the Government can h elp
check this ris e in the cost of living.
One way is to g a ther
in this e x tra p u r c h a s i n g power that is b i d d i n g for goods w h i c h
are not available.
The T r e a s u r y is t r y i n g to do this in a
v a r i e t y of ways.
The most effective, of course, is b y taxation.
About fifty pe r c e n t of our total e xpenditures this year w ill be
met from taxes.
In this way, we are h e l p i n g to check inflation,
we are h e l p i n g to meet the huge costs of defense, and, in
addition, we are p a y i n g as we go for as m u c h as possible of our
current expenditures.
It has b e e n a great source of e n couragement to us at the
T r e a s u r y to see the w i l l i n g n e s s w i t h w h i c h the A m e r i c a n people
have a c c e p t e d these new and heavy t a x burdens.
Almost e v e r ybody
agrees that taxes are n e c e s s a r y to pay for our defense
e xpenditures and that they wil l h e l p to keep the cost of l i v i n g
down.
But ver y f ew of us, I believe, have b e g u n to c o n sider
h o w these taxes are to be p a i d w h e n they become due on the 1 5 th
of next March,
We say that we are w i l l i n g to pay h i g h e r taxes,
yet so few of us k n o w h o w m uch we shall have to pay.
M a n y are
g o ing to be s u r p r i s e d unless they l o o k into the m a tter b e f o r e
that date..
We in the T r e a s u r y want to acquaint every A m e r i c a n t a x
p a yer w i t h the facts about the n e w income t ax payme n t s w h i c h
they will be r e q u i r e d to-make d u r i n g 19^2*.
Those millions who
will file t a x returns for the first time and the m a n y others
w ho will find their taxes inc r e a s e d several times above those
of this year must be p r e p a r e d to meet their qu a r t e r l y inst a l
ments w h e n they fall due.
Let me give you a fe w examples of
just what these high e r levies will m ean in your budget next year,.
If you are a m a r r i e d man h a v i n g no dependents w i t h a net income
of § 3 , 5 0 0 a year, your t a x bill next year will be $ l £ 6 . Or if
your net income is
000 a year, your income taxes next year
will amount to $ 2^ 9 . If Y o u are a s i ngle p e r s o n w i t h a net
income of $ 3,500 a year, your next y e a r ’s t ax will be $264.
These examples w i l l serve to i llustrate the sharply i n c r eased
strain w h i c h will be p l a c e d on mi l l i o n s of A m e r i c a n incomes b y
the r e c e n t l y i n c r e a s e d taxes.
The T r e a s u r y b e l i e v e s you should consider n o w the m e t h o d
b y w h i c h you will be best able to pay these increased taxes.
It is e x t r emely important for all of us to look ahead and to
start saving now, every p a y d a y or every month, so that when
the t a x payment dates roll around, you will be well p r e p a r e d to
meet the b i l l U n cle Sam will then h a n d you.
R e c e n t l y the T r e a s u r y p u b l i s h e d a small folder called
"Know Y our Taxes".
The tables in it s how at a glance the
a p p r oximate amounts w h i c h various taxpayers wil l owe their Government next year on this year's incomes.
In another column is
shown h o w much- you will n e e d to save every m o n t h to meet those
payments.
G o i n g f u r ther than that, t h e - f o l d e r suggests an
important way of saving to pay the h i g h e r income taxes, doing
it r e g u l a r l y and systematically.
This m e t h o d is call e d the T a x
Savings Plan.
The T r e a s u r y hopes employers w i l l d i s t ribute t h i s ’ folder,
or its contents, to their employees in order that they may k n o w
n o w what m o n t h l y savings are n e c e s s a r y to provide for t ax p a y
ments next y m r .
Copies may be s e c u r e d from the Federal
R e s e r v e B a n k in your district or direct from the T r e a s u r y in
Washington.
The T a x Savings P l a n was i n s t i t u t e d in August of this year
as a conv e n i e n c e for all income t a x payers.
Let me explain it
to y ou briefly.
The p lan is b a s e d u p o n a ne w type of security
c a lled T a x Savings Notes.
These are b e i n g o f f ered in two
different series, a v a ilable t h r o u g h your n e i g h b o r h o o d b a n k or
savings and loa n association.
The smaller, or Series A, notes
are issued in d e n o m i n a t i o n s of $ 25 , $ 50 , and $100 each.
T h ese notes m ay be p u r c h a s e d now, say every payday, one a
month, or every quarter, and u s e d to pa y next y e a r ’s taxes.
T h e y yield almost 2 percent a year; so aside from b e i n g a
convenient m e t h o d of saving, they are a g ood investment..
If
you expect to p ay a h u n d r e d dollars a year in income taxes, you
ca.n b u y a $25 T a x Note every q u arter from your current income
and apply those notes against your t a x bill w h e n it is due.
For l a r g e r taxpayers, another series, k n own as Series B
notes, is available.
These notes y i e l d about one-half of one
percent.
However, I k n o w that most of us will be i n t e r e s t e d
in the Series A notes w h i c h are a c c e p t a b l e for tax payments up
to $1,200 in any one year.
W h e n M a r c h 1 5 th comes around, we will feel m u c h more
c o m f ortable if we have saved for our taxes by means of the T a x
Savings Notes.
T h ose of us who have f a i l e d to plan for tax
payment day may hav e a h a r d time in m e e t i n g our obligations.
We m ay wake up a w e e k b e f o r e M a r c h lpth and b e g i n to w o r r y
about h o w to raise the m o ney w h i c h will b e c o m e due on that day.
But t h o s e o f us who have had f o r e s i g h t and t h r i f t , t h o s e o f
us who have bough t t a x n o t e s r e g u l a r l y in t h e months b e f o r e
March 1 5 t h , w i l l f i n d i t e a s y t o pay ou r t a x b i l l ,
The t a x
c o l l e c t o r w i l l s im p ly c r e d i t us w i th t h e amounts we have i n v e s t e d
in T ax S a v in g s N o te s , th e b a l a n c e , i f an y , may be p a i d in c a s h ,
and we s h a l l h av e t h e added a d v a n ta g e o f e a r n i n g i n t e r e s t on ou r
money.
I w ish t o a p p e a l p a r t i c u l a r l y t o t h e women o f A m e rica .
You a r e t h e ones who do most o f th e w o r r y in g about f a m i l y b u d g e t s .
I t i s you who w i l l be c a l l e d upon n e x t March t o s t r a i n your
f a m i l y b u d g et i n o r d e r t o meet t h e income t a x b i l l .
F o rtify
y o u r s e l f a g a i n s t t h e c a l l w hich U n cle Sam w i l l make upon yo u r
income by s e t t i n g a s i d e a c e r t a i n amount ou t o f your b u dget e v e r y
p a y d a y , o r e v e r y month.
Make yo u r money e a r n i n t e r e s t f o r you
by b u y in g T ax S a v in g s N o t e s .
T hese n o t e s may be p u r c h a s e d by
a p p l y i n g a t any bank o r s a v i n g s and l o a n a s s o c i a t i o n ! which w i l l
be g l a d ° t o o r d e r them f o r you from t h e F e d e r a l R e s e r v e bank in
your d i s t r i c t .
The th o u g h t o f h i g h e r t a x e s i s n e v e r a p l e a s a n t one, out
i s t h e r e a n o t h e r s p o t in th e w o rld toda.y where th e p e o p le a r e
a sk e d t o make so few s a c r i f i c e s ?
On t h r e e c o n t i n e n t s o f t h e
P£y^"th s o l d i e r s a r e c o n s t a n t l y on th e m a rc h .
The w o rld s
a g g r e s s o r n a t i o n s a r e r o b b in g t h e i r w eaker n e i g h b o r s o f a l l
th ey p o s s e s s .
I f by s a v i n g a l i t t l e money now o r by p a y in g
h i g h e r t a x e s we c a n g u a r a n t e e f o r o u r s e l v e s t h e p r e s e r v a t i o n o f
l i b e r t y and d e m o cra cy and a l l t h a t we p r i z e so h i g h l y , we s h a l l
in d e e d be p a y in g a s m a ll p r i c e .
These freed om s we have a r e
p ric e le s s p o ssessio n s.
L e t ’ s keep them, l e t ’ s sa v e f o r them —
now.
0O0-
- 25-
a reversion to tyranny, the afrroro a t of mankind*
That is
a system that is old in the world, that goes back to the
days wfeen men were just taStfe beginning their struggle away
from barbarism.
There can be no new order except in the elevation
of the capacity and the dignity of man.
The concept of an
order that would swing the world back in full cycle beyond
the dark ages is an insult t o a n d
to man.
Let us be ready to make any sacrifice that no
such concept be accepted and no such evil befall us.
00O 00
We are not straining our productive resources
and mortgaging our financial future for the sake of any
mystic formula of a better future.
future to save our future.
We mortgage our
We gird ourselves.
We
summon our men and our resources to work in unity that
our future may be our own.
a better order here.
We see work to be done to make
But we put that aside far the moment
while we take up the task of making certain that we ca
?
when the time comes work our own changes in our own way
¿/
and that x we shall not accept what a world conqueror sees
fit to force upon us.
On the great seal of the United States there
is .phrase which when translated means, "A new order of the
AC
ages*"
That new order was the order of Government of, by
and for the people.
Today we hear the blasphemy, the
obscenity of the use of the wordsi "new order" to describe
- 23 -
a r e n o t g o in g to be dismayed#
You a r e showing a l r e a d y
by
th e p r o d u c t i v e a c h i e v e m e n t s o f yo.ua? i n d u s t r i e s t h a t you
a r e h e a r t and s o u l beh ind t h i s
e f f o r t t o make A m e rica
secu re.
We c a n n o t hope t o l i v e
s e c u r e l y i n a world
d o m inated by any group o r r a c e
whose b a s i c m o tiv e
i s e n s la v e m e n t ----- t h e e n s la v e m e n t o f i t s
o f e v e r y p e o p le t h a t has t r i e d
own p e o p le and
t o p r o g r e s s i n freedom#
A m e rica n s have n e v e r found i t
p o ssib le
i s o l a t e d fro m th e w o rld ^ p ^ h a v e t h e y found i t
t o be
co n siste n t
¿r
w i t h t h e i r h o n o r t o be i n d i f f e r e n t t o a g g r e s s i o n and
ty ra n n y .
The w orld s h r i n k s , and n e v e r more r a p i d l y than
in th ese re ce n t y e a r s .
one by o n e , i f
The d e a t h o f f r e e govern m en ts
our i n a c t i v i t y
sh o u ld s a n c t i o n i t ,
holds
^ K f o r us t h e imminent p e r i l o f t h e d e a t h o f fre e d o m here
22
-
A fte r
a ll,
b eyo n d
an y
o f
ow n p a rt
our
A m erican s
*
o f
our
o u t
d im en sio n s
p r e v io u s
in
it
o f te n .
p ro gram
G erm any an d
th e
a l l
-
are
o n ly
d im ly
th e
fr ig h te n e d
jo b
ah ea d
w ill
to
s a c r ific e s
m ake
an n o u n ced
handy^m#
b y ^
h ave
g o a l.
to
w o ra
d e sig n e d
or
m ake
b e fo r e
Æ horo
The
to
are
d im en sio n s
b y
n in e
o u t-p ro d u ce
a re a s w h ich
do
to
B u sin e ss
s tr u g g le
d e eid ed ..
in d u s tr ia l
o f u s..
fa rm ers
our
*
be
w o rld
r e a liz e d
W e h ave
111
to
th is
c o n c e p tio n s .
o£ p r o d u c tio n
th e
o f
u s
no
be
w ill
h as
go od
in
th is
d ism a yed
b y
th e
h ave
to
s a c r ific e s ,
w age
w e
th e
h ave
H itle r
w on
m ake
e a rn e rs
v ic to r y
m a y x o i g e H T O B i e j i l s "hr
H itle r fs
seized .
e ffo rt
siz e
of
s a c r ific e s ,
w ill have
w h ich
is
21
-
o f m a te r ia ls
u se .
The
th a t
tim e
u sed
is
to
sy stem
a b ig
ste p
o f
u r g e n tly
fo r
th e
be
fr e e
to
c a rr y
£ £ tÌ.8 B ÌB g
W e m ay
.. . a ^
go od s
th o se
d e fe n se
Î1«> »
^iiteecwAa»'
e veryo n e
e ffo r t.
in
w h ich
to
A fte r
b u y
and
th e
p r ic e
end
to
n eed ed
a
m ost
L h a r 'T i i r w o ^
*-£<4
.A-«/
f
m any A m erican ^ ,
b u t Â
M
A
\
“ ta t
a ^ L r a tio n in g
J
I
an d
are
j E knuuu
.
»T fftî s o u n d
h
com e
th in k ottr^Np3îï<?iFp't'i'On’ 'o f
u n |arrr.
to
p r io r it ie s
fu r th e r .
Zl eLv~f-#
H
fo r
co ir*~ ~
w hen we m ay h ave
c o n tr o l
-
is
a m upft f a i r e r
sy ste m
th ai
\
\
p rifce
c o n tr o l.
th o se w ith
y
I f y o ^ f i x
m oney
to
»
a c e llin g
b u y w h a^ ^ feh ose
u p o n
p r ic e s ,
w ith o u t m oney
yo u
en a ale
can n ot
afilp rd .
go od s
eq u ally
%»*
I f
y o u
im p o se
r a tio n in ^ ^ y o u
w ith o u t
fe a r
i
o r j^ n ro r.
c o n s id ^ e d
j
^
V
Jr
j
b eifig
d i v i d e ^ i^ e a v a i l a b l e
I do
in ^ W ash in gto n ,
I
n
k
n o t m ean
b u t
I
¡1
i
n
g
ab o u t
i t
th a t
do
r tó io n in g
is
su g g e s t
earn estly
’
now *
no?/
20
-
A t
a
tim e
lik e
p r o d u c tio n ,
w o u ld
th is
w hen
w e m ust
co m p ete w ith
co n su m p tio n w h ere
cu t
p u r ch a sin g
dow n on
d e fe n s e ,
no
-
su ch
pow er
is
c iv ilia n
co n su m p tio n
h u t w e m igh t
c o m p e titio n
o u tru n n in g
a ls o
fo r
raw
th a t
e n la rg e
c iv ilia n
m a te r ia ls
exists.
- .c o n s i d e r
s e r io u s ly
p r e se n t
in
our
k in d
th e
im p o s itio n
em ergen cy
n a tio n a l
o f
c o n tr o l
is
so
e ffo r t
th e
b an k s
S e c r e ta r y M o rgen th a u
o f
th e
lo a n s
an d
in
in
.
an y w ay w ith
th a t
c r e d it
th e re
s p e c u la tio n
o f A m e rica
s u g g e ste d
lo o k in g
g r a n tin g
s e le c tiv e
g r e a t
fo r
as
n a tio n
o f
c a r e fu lly
o n ly
th o se
a t
m igh t
a l l
a
system
o f
th in g s
be
no
k in d .
th e
room
th is
th em selves,
s e n tin e ls
a p p lic a tio n s
n o t
Our
In
w e ll m ake
w h ich w o u ld
fo r
com p ete
—tQ rVW».
p r o d u c t i o ^ fmf j ff ee s h a l l
^
u n p re ced en te d
an y
m o n th ,
—
d e fe n se
sh o u ld
o f
la s t
c o n tr o ls .
b e fo r e
p r io r it ie s
h as
th is
b e e n
be
d o in g m any
--------------------------------- —
c r is is
im p o sed
is
o v e r.
o v er
A lre a d y
a w id e
ran ge
in
No
one
o f
th e se
m eth od s
—
ta x a tio n ,
s a v in g s ,
econom y,
La/
or p r ic e
c o n tr o l
W h a tever w e
be
ca n
do m u st b e
lim ite d
to
th e
,fnr>"~jnn-h
le s s
—
se rv e
o b v io u s
d e v ic e s
i t s e l f
com poun ded
m n i M W ^ T
o b v io u s
b y
r
w h ich
in fla tio n .
o f m any m eth o d s
m eth od s
nln nn,1
to 'e k -e ^ k
a l o n e . Q ) I
1 i
and
can n ot
-»ay t h i n k
a
o n g ^i&sl
ppV
num ber
m i g h t t i i = ± f a 8 c = s ^ e <^ ^ c h e c k s
in fla tio n ,
,
fo r
exa m p le,
of
upon
th e
in crease
A
o f
our p r o d u c tio n
in
fie ld s
th a t
do
tAsSg
fo r
d e fe n s e .
p r o d u c tio n
b u t
be
fo r
o f
n eed ed
on
k eep
th em
th a t m illio n s
a
on
w h ich
in
fro m
o f
n eed ed
E n gla n d w ho
trem en d ou s
th e
is
s c a le
C o n tin e n t
o f
s ta r v a tio n .
our
p e o p le
/
a re
co m p ete
/\
w ith
p ro d u ctio n
A'wL»4>.'*y*
m e a n s -f f i g t i c u l - a - r l y
fo o d ,
m illio n s
o f m illio n s
to
T h at
n o t
a re
an
now
n ot
o n ly
d ep en d in g
a fte r
E u rop e
th e
in
fo r
u p o n
w ar w h en
m ay be
C e r ta in ly
s t i l l
in c r e a s e
u n d e rfe d
an d
o u rse lv es
u s,
and w ill
h u n dred s
lo o k in g
we s h o u l d
th e
to
us
never f o r g e t
u n d erclo th ed .
The
is
th e
on
th is
la s t
o f
c o n tr o l
j iJ
I
p
be
o b v io u s
p r ic e s ,
We a t
as
an d
th e
in tr o d u ce d
a n ti-in fla tio n a r y
I
s h a ll
o n ly
a w o rd
T r e a s u ry -tfe lt
th a t
th e
in to
th e
H ou se
b i l l ,
d is c o u r a g e d
b e fo r e
now b e fo r e
th e
b u t
in
H ouse
an d
co n ce rn in g
th e re
is
b i l l
h as
th e
tw o
p r ic e
t< /-c (K yi* tflA —
am en d m en ts
. ■. . . . . . . . . . . . . t h e
o r
o f R e p r e s e n ta tiv e s
hf^11 oattss&tssisi
The
m eth od s
sa y
Yt
in fla tio n .
>
o f
s u b je c t.
c o n tr o l h i l l
Aa
th e se
it
no
th e
fa rm
p r ic e s
re a so n
p a ss
a g a in st
h ave
to
a c tu a lly
m u st y e t
fig h t
I t
$&&&&&.
th ro u g h
th e
is
S en ate,
*
an d
in
b i l l
b o th
th e
h o u ses
m o st
th e re
e ffe c tiv e
is
a w id o o p ye gy
in stru m e n t
d e s ir e
p o s s ib le .
to
m ake
C e r ta in ly
e ffo r t\ to
th a t
be
th e
b i l l
a b rak e
som e
as
u pon
r e a ssu ra n c e
i t
f in a lly
th e
r is in g
to
th e
r e a ch e s
c o s t
A m e rica n
o f
th e
see
P r e s id e n t’ s d esk
liv in g
co n su m in g
an d
s h a ll
p u b lic *
sh a ll
fu r n ish
-
a re
a t
le a s t
b r ie fly *
s ta te ,
rea d
tw o
One
an d
o f
-
o t h e r s w h i c h ^ - 'i k e u M i i i i ilA Jficjsfc* m e n t i o n ! * * ! « /
is
th e
lo c a l
th e
17
r e d u c tio n
o f n o n -d e fe n se
g o v ern m e n ta l
f i r s t
m e e tin g
e x p e n d itu r e .
th e
o th e r
d a y
o f
fe d e r a l,
Y o u m ay h ave
th e
new
co m m ittee
*
a f l 'O f f l p y U £ ( L . , , y £ J b h e
H ouse
th e
ta x in g
an d
an d
S e n a te ,
w h ich w as
w h o le
p ro b lem
o f
■/ f u i 4
to
it s
m e n d a tio n s
p u b lic
w o rk in g s
y o u r
lo c a l
in
lo c a l
o f
to
th is
co m m u n ity
go vern m en t.
I
co m m ittees
s p e c if ic a lly
fe d e r a l
o f
to
th e
stu d y
sp en d in g*
fo M * -
a m em ber
o f
th is
tr a n s la te
econom y w h ich
sta te m e n ts*
th e
^
m e e tin g s
fo r
form ed
n o n -e s s e n tia l
S e c r e ta r y M o rgen th a u
lo o k s
a p p r o p r ia tin g
he
in to
h as
so
co m m ittee
a c tio n
o fte n
th e
m ade
and
recom
in
h is
s u g g e st
th a t
yo u
k eep
y o u r
e ye s
co m m ittee
and
th a t
y o u
a ls o
en co u rage
to
s ta r t
m ake
a
to w a rd
g r e a te r
upon
econom y
-
p a y r o ll
a llo tm e n t
co m p a n ie s
p la n
em p lo yin g
o f p a r tic ip a tio n
I f y o u r
p la n t
e x p re ss
a d e s ir e
is
w ill
f a c i l i t i e s
e lse w h e re
yo u w i ll
in
be
co u n try b y
a tte n tio n
s y s te m a tic
I h ave
S a v in g s
as
to
d o in g
in
th e ir
a v a ila b le
y o u r
I f y o u r
p la n t
a
s e r v ic e
to
g r e a t
p a y r o ll
an d m a k in g
i t
p o s s ib le
r e g u la r
m e n tio n ed
o f
in
th e
b u t
i f
i t
in
a s
th e
n o t
fo r
th em
ta x e s
and
p la n
to
b e .
w o rk ers
p a y r o ll
m an agers
o ffic e
or
o rg a n ize d ,
y o u r w o rk ers
a llo tm e n t
d egree
to
th e
c a s h ie r 's
is
6 ,0 0 0
th e
yo u r
jo in
th a t y o u
som e
lik e
and
to
p la n t.
th e
tw o
sh o u ld
u n io n
v e r y m uch
in
w o rk e rs,
o rg a n iz e d ,
b r in g in g
an d
o p e r a tio n
i ll i o n
be
I h ope
y o u r
-
n o t y e t w h a t w e
th ro u g h
sch em e,
now
a b o u t
h ap p en s
a llo tm e n t
m ake
is
16
to
save
an d
to
your
th e ir
on a
b a s is .
in c r e a s e d
o b v io u s
w ays
to
in c r e a s e d
a tta c k
D efen se
in fla tio n .
There
-
15
-
-and'-atrdH:o
sa le
o f
th e se
D e fe n se
B onds
in
th e
co m in g y e a r .
ta
A
S p re a d
t h e ’s a l e
e v e r y
in
one
th is
a fin e
I
su sp e ct
up
th a t
w h ich
D e fe n se
a sid e
p a y r o ll
a
p o r tio n
s m a lle s t
S ta te s .
W e h ave
know
now
th e re
a re
n o t y e t
M o re o ve r,
S a v in g s
th e
I
to
do
c o n tr ib u tio n
th e
48
d ir e c tio n .
co m m ittee.
o f
th e
re c o rd
S ta te ,
a
o f
dow n to
w e
p rogram ,
to
th e ir
th e
o f D e fe n se
s a le
h ave
s h a ll
e f f ic ie n t
n o t m ake
e ith e r
a s
p la n
a
a
ch e ck
u n le s s
w h ereb y w age
e a ch w eek
th rou gh o u t
our
C o n n e c tic u t
co m m u n itie s,
an
an d
b egu n
in
m any
p a y
o n ly
th a t y o u
A m e rica n m o ra le ,
a llo tm e n t
o f
in
co m m u n ity
to
h ave
B o n d s,
e ven
lo c a l
in
u p o n
y e t
com pact j
D e fe n se
S a v i n g s ij
o f
our
in fla tio n
we m ake
e a rn e rs
a
m ade
yo u r
s u c c e s s
b u y
e ffo r ts
a
or
su ccess
ca n
bo n d .
n
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14
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m ay rem em ber,
p e rso n w ith
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th e
e T i l 1 St t FUe ^ '
1 Jy
in
th a t we lim it
E B o n d s,
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tw \ J\
w e
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p ro gram
th is
a
to
as
fin d
fo r
th o se
o f
h a lf
o f
s a le s
S ep tem b er,
th a t
th e
s m a lle s t
O cto b e r
n o t be
t o t a l,
m ore
th e
s a le s
th a n
o f
<2LO
irlm o o t '"fiQ
y o u
if
I
d id
th e
encouraged
16
ahead
p e rc e n t
th e
S e r ie s
s a le s
fo r
o f
of
E B onds,
alm o st
S a v in g s
Stam ps
.
p e rc e n t
a re
n o t
reg a rd
e s p e c ia lly
a c co u n te d
th a t
T h ese
T re a su ry
W e a re
w ere
an d
p r e c e d in g m o n th .
fra n k w ith
th e
d e n o m in a tio n s,
b y
-j p # i r ft h e
W e a t
b e g in n in g .
O cto b e r
th e
-
la u n ch e d .
s a tis fa c to r y
th a t
th o se
w as
13
go od
sa y
in
O cto b e r
s ig n s ,
oampa
y e t
th a t w e m u st
I w o u ld
do
a great
d e a l b e tte r .
The
s o lu tio n
o f W a sh in g to n
s e llin g
to
o fte n
r e v iv e
G overn m en t b o n d s.
know w hy w e
be
is
m ost
e ffe c tiv e
do
in
n o t
th e
b e lie v e
fig h t
p r e sse d
th e
I
o ld
th in k
a n o th er
a g a in s t
u p o n u s
L ib e r ty
it
m ay
L ib e r ty
b y
fr ie n d s
L o an m eth od s
in te r e s t yo u
L o an
in fla tio n .
d riv e
o u tsid e
o f
to
w o u ld
12
-
w ith
a
r is in g
m eager
c o s t
in co m e
o f
liv in g
e v e ry
fo r tu n a te
am ong u s
N e v e r th e le s s
ta k in g
d a y .
K B.
le a s t
-
sk*-**~ ^
i d. w
f r ,,',g |,g r it y ii "
T h ere
sim p ly
c
a
as
as
p r o d u c tiv e
y e a r .
I
S a v in g s
s m a lle s t
th in k
o f
y o u
ta x a tio n
D e fe n se
a l l
o f
sw e e p in g
to
do m ore*
as
p o s s ib le ,
s
o f
sp a re
w e
S a v in g s
know
S tam p s w h ich w ere
am ou n ts
a sk ed
th e
reven u e
a s
w p
S Q j& is€ -" \ £
h e a v ie r
s a le
a t w h ich
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p o in t
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d eep en
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a b o u t
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s h a ll h a v e
B onds
th e se
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so
in com e
co u ld
d u rin g
B onds
th a t
to
in v e s t
th e
an d
th o se
w id en
co m in g
a b o u t the
w ith
in
and
th e
sm a ll
*1
in s ta llm e n ts .
The
s a le s
o f
th e se
B onds
th e
rn a rk ^ l^ ss-tlm n ysix m on th s
\ ^ J u ,^ ^ a
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I
11
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go od
th em
B u t
T n
th e
reven u e
ta x
s t i l l
in w h ich
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a ll
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th o se
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liv in g
is
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th e
h ave
f a s t
th e
o f
th is
b e a r
yo u
o r
n e a r ly
th a t
e xe m p tio n s
a y e a r
fo r
ta x p a y e r .
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y o u
exe m p tio n s
sh o u ld
be
t h a t s v e n . ■& ! £
th el* - f a ir
s u b s is te n c e ,
to
th in k
a
can
b illio n 5
w ere
s in g le
sh a re
lo w ere d
an d
e x c e p t
a re
e v en
in
c o n c lu s io n
I
now
ca n
You
p r e s e n t tax
fo r
th a t
a ll
perhaps
le v e l.
th e
$ 150 0
lo w e re d ,
e ffo r t
en g a g ed ,
s u b s is te n c e ,
m an
fu r th e r
th is
a re
la d d e r w ho
th e
s t i l l
In
co u n try
th e
b i l l
y o u
co m in g y e a r .
o f
rem em ber
$ 750
in
to
so
b o tto m
w i ll
if
i t .
e n e r g ie s
v e r y
on a
c lo s e
h e a v ily
w ill
g la d ly
g ro w in g
n o t
m ore
yo u
e ff e c t .
gap
w i ll
to
-
a m a rried
th ese
o n ly
suggest
th a t
e a rn in g
$30
a w e e k ,w ith
no
in v e stm e n ts
to
f a ll
b a ck
upon,
10
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p a y e rs
to
save
w ill
becom e
h ave
b e e n
b u y in g
th a t
due
go es
to
w ith
th em .
to
th e
as
th e
u p o n
to
re a ch
a
h ea d s
o f
th o u sa n d s
d is tr ib u te
s a v in g
fo r
The
th e se
e v e ry
ta x e s .
w ith
to
th e
m eet
fo ld e r
T h ese
p a id
an d
an d
a r e a l
o f
h ave
to
In an
recen tly
show s at a
p ay under
s e r v ie / if
em p lo yers
o f
p e o p le ,
co u ld
a v a ila b le
to
sa v in g
T re a su ry
p o p u la r iz e
are
done
b i lls .
T a x e s ” w h ich
w o rk in g
fo ld e r s
th e
in te rest
be
a d v a n ta g e s
ta x
o f
th e
ca n
th e ir
th e
th u s
o f A m erica
e a rn in g
ta x p a y e r w i ll
be
th a t
th e m se lv e s
ta x p a y e r ,
I t w o u ld
o f h ig h ly
to
an d
"K now Y o u r
c o r p o r a tio n s
th is
c o r p o r a tio n s
n o te s
in d iv id u a l
A c t.
p aym en ts
m ore
r e g u la r ly
c a lle d
ta x
a d v a n ta g e s
ta x p a y e rs
how m uch
R even u e
th e
th e
B ut
th e
fo ld e r
ju s t
19 4 1
an d
fo r
15 .
o f
in d iv id u a l
p re p a re d
g la n c e
see
am ou n ts
s y s te m a tic a lly
e ffo r t
in s ta llm e n ts
on M arch
q u ic k
la r g e
a c q u a in t
b y
-
th e
a t
you ,
th ousan ds
h e lp
n o tio n
th e
of
Treasury
j
Q i i i l y i ni#»' P f i
To
W e h a v e
1942V
n
a lr e a d y
T h a t
h e a v ie r
jo b
o f
sh o u ld
th e
lik e
00k n o te s
in
c e r ta in
a
ta x
ch eck .
o b v io u s
b i l l
n o t
o f
h ad
to
th e
ad d ed
ta x e s
p a y
on m any
w h ich
A
sh o u ld
th is
r e p u b lic .
ta x e s
im p a ct
w ill
o f
M illio n s
h ave
th is
co m m o d itie s
to
do
ta x
who
so
now ,
b u rd en
th a t w e
in
u se
in
th e
p a rticu lar
■
en o u gh
T re a su ry
to
c o u rse s.
■ f i '4 - e w * n n d - -w i t b o w 4
L ives-.
th e
are
h is to r y
f e e l
e x c is e
is
in fla tio n
se en e n a c te d
-
b e fo r e
nhnhi
-o u r d a ily
I t
k eep
i 5? a r >
in
n ev er
a n d Tf~
to
b e g in w ith ,th e r e
p re c e d e n t
h ave
w ay
t t it
to
s tr e s s
w h ich w ere
to
im p o se
c o lle c t
th e
new
ta x e s ;
th em .
In
im p o rta n ce
f i r s t
is s u e d
o f
in
it
th is
th e
A u g u st
is
co n n e c tio n
new
to
I
ta x
en a b le
ta x -
8
-
an yon e
in
gro u p s
in
e x p lo it
]W e
ca n
an d
mi ■ b n ~ i t i r rr o f
A
a n y
co m m u n ity,
an ab n o rm al
a ll
sh o u ld
m ay w e ll
a g r e e ,
be
a sk ,
fro m
m ore
an d
d is tu r b s
u s
b e tw e en th e
our
p u b lic
th a t
G overn m en t
fin a n c e
gap
an d
dem and.
a ll
am ount
th e
o f
in
B u t
y o u
a re
f is c a l
w o rk
tim e
to
a t
p a r tic u la r ly
is
o f p u r c h a s in g
d w in d lin g
A c c o r d in g ly ,
w e
su p p ly
a t
is
to
q u e s tio n
you
a m p ly
e n title d
to
do
o f
th e
pow er
ab o u t
i t .
T re a su ry
o f
th is
I
can
th a t no
th o se who
co u n try .
s w iftly
in
o f go o d s
th e
tr y
d an gero u s
th o u g h t
p o lic ie s
w ho
th ose
th e
th e
and
fo r
o w n m às£x& g a i n .
in f la t io n
p ro p o se s
th e
e x c e p t
n u m ber,
th e ir
c o s ts .
m y d a y -to -d a y
o ccu p ie s
few
th a t
q u e s tio n
y o u
W hat
th e r e fo r e ,
th e
in f la t io n
fo r
and
a ssu re
th e
s itu a tio n
a t
w h at y o u r
d ir e c t
h a p p ily
a v o id e d
a s k ,is
p ro b lem
-
th e
th a t
gro w in g
h an ds
can
T r e a su ry m u st
of
sa tisfy
th in k ,
< n aL
an d
th in k
h a rd ,
m
F h o w
to
n arro w
th a t
g a p ,
fo r
th a t
is
T h ere
is
no
o f
th e
of
C o n n e c tic u t
o f
b u s in e s s ,
l i f e ,
ru in o u s
to
t e l l
co n seq u en ces
are
o f
w h ich
n eed
o n ly
th e
a
o f
g r e a t
in fla tio n .
to o w e ll
aw are
d is lo c a tio n
accom pan y
an d
a u d ien ce
in
fo llo w
o f b u sin essm en
Y o u m a n u factu rers
o f
th e
e v e r y
d iso rg a n iza tio n
p h a se
o f
an u n r e s tr a in e d
eco n o m ic
r is e
in
*
1 3
p r ic e s ./ B u sin essm en
m ay m ake h ig h
in fla tio n ,
p r o fits
as
a
b u t
dream .
th o se
d e fla tio n
c o lla p s e .
y e t
fa c t
b u t
th e
th o se
F arm ers m ay
h ig h
p r ic e s
an d
L a b o r m ay
r is in g
m ay a c t
i n d iv id u a ls
as
c o s t
a
f la t
c a p a c ity
a lw a y s
ta x
to
p r ic e s
be
h ig h w a ges
liv in g
w ip e s
u p o n
p a y .
in
u n re a l
an d m ise r y
e a rn
o f
a r e
e a rn h ig h
m u st
b a n k ru p tcy
p r o fits
b a la n c e d
in
o u t
com e
a
is
no
tim e
o f
u n su b sta n tia l
th e ir
cro p s,
a g a in s t
w ith
tim e
th o se
a l l w a ges
T h ere
an d
fo r
th a t
a
o f
a
th e
p rice
in fla tio n ,
g a in s ,
an d in
ir r e s p e c tiv e
r e a l
p r o fit
o f the
for
6.
a b o u t
3pp e r c e n t
T h ese
in c r e a s e s
a t
yo
le a s t
o f
w h o le s a le
in
ju s t
c o s t
o f
are
th e
p r ic e s
S ep tem b er,
one
19 15 ,
y e a r
liv in g
in
th e
a t
p r ic e s
a
r a te
g r e a t
p r ic e
w en t
fro m
w as
d o u b le d .
w h ich
an
in d e x
Ju n e,
T h a t w as
b a s ic
co m m o d itie s.
s u g g e s ts
u p h e a v a l
to * 1 6 6 ^ in
t o N9 3
o f 28
o f
19 15
le v e l
19 2 0 ,
p t
an d
a p e rio d
th e
to
p a tte r n
19 2 1,
w hen
in
\ d ropped
t h e n jfa x ftj[a fHHt
in w h ich
th e
5.
te rm s,
th e
s o rt
o f
in fla tio n
s u b s ta n tia l
g e n e r a l
in c re a s e
m oney
in
a cco m p a n ie d
b y
th e
p r o d u c tio n
an d
to o
a
in c re a s e
p aym en ts
la c k
o f
w h ich
o f
an d
in
p r ic e s
go o d s
th e
o r
o f
ca u sed
th e r e fo r e
in c r e a s e
con su m er
m any d o lla r s
in
c o n s is ts
in
an
—
in
m a rk et
an d
a
b y
a
and
g r e a t
p u r ch a sin g
a c tu a l
s h o r t,
to o
r a p id
pow er,
d e c re a se
to o
few
in
m any buyers
go o d s
to be
s o ld .
The b e g in n in g s
u n d erw ay.
W h o le sa le
in c re a s e d
y e a r ;
19 26
th a t
th e
y e a r
from
th a t
p r ic e s
a p p r o x im a te ly
th a t
y e a r
o f
is
is
fro m
10 0 ,
80
to
co m m o d ity
19 17
r a p id ity
o f
s tr ik in g
and
it s
to
o f
o f
p e rc e n t
on an
in d e x
19 2 9
in
s ig n ific a n t
is
s t i l l
n o t
th e
is
in f la t io n
s in c e
92
la s t
th e
in
b e lo w
n e a r ly
te n
a re
co m m o d itie s
th e
o f w h ich
a p p r o x im a te ly
is
an
g e n e r a l
15
in d e x
r is e
so rt
so
th e
th e
h ave
o f
The
a v e ra g e
s ig n ific a n t
in
an d
th e
th is
a v era g e
O cto b e r.
m o n th s,
in c r e a s e
f ir s t
a lrea d y
fo r
as
o f the
fa ct
any
th e
e v e n m ore
sam e
tim e of
1
*r‘~ "
to
4.
ta k e
h ave
or
e ff e c t iv e
to
h ave
a c ts
o f
m ore
s te p s
th a n
C o n g re ss.
to
a v e r t
d e c is io n s
F ir s t,
w e
o f
it s
e v ils
we
go vern m en t
s h a ll
n eed
s h a ll
f is c a l
co u n se l
p o licy
in w o rk in g
|§ § §
o u t
in
a w ise
p o lic y ,
m ak in g
i t
tr u s t
to
fro m
o f
p o in t
in
o v ertim e
th e
th a t
to
d a n ger
is
v is io n s
tu rn
is
n o t
m o n eta ry
p u r ch a sin g
n eed
o u t
k in d
o f
o f
th e
u n d e rsta n d in g
o f
a
and
I t
d o lla r
p o w er, w ith
an
s o r t
ca u ses
cu r re n c y .
o f
is
and
in fla tio n
th e
is n ’ t
co o p era tio
th e
th a t
r e s u lt
n e c e s s a r y ,
d w in d lin g
to w ard
p r in tin g
e v e r -in c r e a s in g
d e n o m in a tio n s.
so rt
The
fa c in g
n a tio n a l
up
e v e r -h ig h e r
o f
are
p u r e ly
c o n ju re
s h a ll
e ffe c tiv e .
W hat w e
a r is e s
an d w e
th erefo re,
th e
p r e s s e s
su p p ly
o f
W e are
n o t
in
th e
o f w h ich
w e
do
sta n d
o f d is
van ish in g
w o rk in g
c u r r e n c y in
s lig h te s t
danger
in fla tio n .
in f la t io n
so m eth in g
q u ite
d iffe r e n t.
I t
is ,
in
in
im m in en t
b r ie fe s t
j
3«
h e a rd
and
I t
to
is
w h ose
so w ith
o f d e fe n s e .
The
a p p r o p r ia tio n
th e
b y
th e
to o ls ,
The
g r e a t
th e
w illin g
a w ord
fro m
h a s
to p
to
w ho m ake
I t
to
p r in c ip a lly ,
sum s
sh ip s
h ave
b o tto m ,
so
w ith
I
n ot
in
th is
m anagem en t
g iv e
p r o d u c tio n
an d
th e
th e
—
and
th e
so
o f
th e
be
c o n n e c tio n
th e
c a lc u la tio n s
th e
th e se
an d
th e
we
fa r
a c h ie v e d
fo r
—
s o -c a lle d
so
b u t
and
o v e r-a ll
w ill
a ir p la n e s
fa r
m a teria ls
E x e c u tiv e ,
o f
in d u s tr y ,
to
e ffe c t*
e x p e r ts ,
none
an d w ill
o f
m u st
n a v a l
g a in e d
b een
—
no m ean in g
an d
a g e n c ie s
th e
d e v d tio n
o f
o f m on ey,
o f m ilita r y
w e
a c ts
o f C o n g re ss
c o m © 'h a v e
in d u s tr y
is
f ia t
g u n s,
r e s u lts
th e ir
p ro b lem
go vern m en t
th e
p r o d u c tio n
th e
o f v a s t
r e q u is itio n s
p la n n in g
s o lu tio n
produce
n eed.
g rea ter
th ro u gh
im p erso n al
o f th e
m en
com m on lab o rb r^
w o rk .
th is
p la n n e d
p ro b lem
to
ta lk
o f
w ith
in fla tio n ,
y o u
to d a y .
a b o u t w h ich ,
I f we are
s ig n ific a n c e
th a n
to
y o u
or
i t
th e
c h a r a c te r is tic
m anhood
d raw
e v en
an d
to
a
h ave
p u rp o se
be
m e re ly
e n te r ta in e d
im p u lse
liv e d
in
fr e e
c lo s e r
to
th e ir
p o lit i c a l
an d
s tr e s s .
I
th in k
it
is
th e
h e a lth
an d v ig o r
o f
o u r
T h ere
e ls e
a t
h as
an y
in h e r e n t
p a r t
tr a d itio n
an d
w h ich
b u t
soun d
o f
th e
th a t
fa c t
a ir
h e re
fo r
d e m o n stra te d
th e re
is
no
in
see
grow n
in
to
in
a
tim e
an d
o f an xiety
one
th a t
shows
p ro b lem
o f
govern m en t
a ll
p ro b lem s,
w h e th e r
o f r o u tin e
o f
o f a l l
c itiz e n s ,
on w h ich
An
th e
th a t
or
now here
is
o f a n y
o f p o lic y
la n d ^ a s
c a p a c ity
co n ce rn
la w ,
our
s e lf-g o v e r n m e n t.
e x c lu s iv e
p ro b lem s
I
o u r d e m o c ra cy to
im p u lse
th e
o f
h ave
o f
is
w h e th e r
sp e ech m ade
system .
c a p a c ity
th a t
a
in s tr u c te d .
go vern m en t
b een d e m o n stra te d
tim e ,
or
h ave
o f m en w ho
th e
a
to
o ffic e r
or
o f govern m en t^
o f
a d m in is tr a tio n ,
th e ir
accep ted
v o ic e s
em ergency,
a re
th e
sh o u ld
common
be
pçtofi#Rfc'
¿r
•«s;
’
0
*-*«*»*■
•WWiiini.1^
M
i|8&ic+.1
»J!l»ysij(^«^<Mia^orraift^wi
I b r in g
an d h is
sp ea k
th an k s
to
In
te s tin g
a ls o
o rd in a te
o u r
a b ilit y
In y o u r
o f
th e
o f
S e c r e ta r y M o rgen th a u
ow n fo r
th e
o p p o r tu n ity
o f y o u r
e n e r g ie s ,
b e in g
d e v o te d
to
an d
o f
th e
an d
d e s ir e
ta lk
as
to
to
to
o u r
on th e
g u n s,
to w ard
o rg a n iz e
m a te r ia ls
freed o m ,
a b ili t y
e ffo r t
T re a su ry
a re
b e s t
th e m se lv e s
sh ip s
our
to
th e
m a ch in es
a re
te s tin g
te s tin g
ou r
s k ill
our h e r ita g e
are
as m y
h o u r w h en
th e
in s titu tio n s
w e
g r e e tin g s
as w e ll
an d y o u r
se cu re
th e
to
yo u .
th is
b r a in s
to
y o u
b u ild in g
n eed ed
p o lit i c a l
p r o v in g
p la n e s ,
a n a tio n
an d
a
p r e v e n t
g o a l,
our
eco n o m ic
h ave
a
r e p r e s e n ta tiv e
y o u
I
see
so m eth in g
to
a b ilit y
a n a rch y
o f
m ake
W h ile
we
p e o p le
and
eco n o m ic
gro u n d .
an d
g r e a t
to
and
ta n k s
a
yo u r
th e
are
co
to
produce,
o r d isa ster*
S ecretary
o f m uch deeper
I
(The following address by Herbert E. Gaston
Assistant Secretary of the Treasury, before the
annual meeting of the Manufacturers A s s ociation of
Connecticut at the N e w H a v e n La w n Club, N ew Haven,
Connecticut,
is scheduled for ikx 1 p» m * , Eastern
Standard Time, Wednesday, November 12, 1941> and is
for release up o n delivery at that time. )
T R E A S U R Y DEPARTMENT
Washington
Press Service
No. 2g-39
(The f o l l o w i n g address by Herbert E. Gaston,
Assistant S e c r e t a r y of the Treasury, before the annual
m e e t i n g of the M a n u f a c t u r e r s A s s o c i a t i o n of Connecticut
at the N e w H a v e n L a w n Club, N e w Haven, Connecticut, is
scheduled for 1 p. m . , E a s t e r n S t a n d a r d Time, Wednesday,
No v e m b e r 12, 19^-1» and is for r e l ease u p o n d e l ivery at
that t i m e . )
I b r i n g you the greetings of Sec r e t a r y M o r g e n t h a u and his
thanks as wel l as my own for the oppo r t u n i t y to speak to you.
In this h our w hen the best of your energies, your brains
and your skill are b e i n g d e v o t e d to b u i l d i n g and to t e sting the
machines and the m a t e r i a l s n e eded to make secure our herit a g e
of freedom, our p o l i t i c a l and economic institutions are t h e m
selves on the p r o v i n g ground.
W h ile we are t e s ting ships and
guns, tanks a nd planes, we are t e s t i n g also our ability as a
nation and a p e ople to coordinate our effort t o ward a great goal,
our ability to produce, our a b i lity to organize to prevent
economic a n a rchy or disaster.
In your desire to have a r e p r e s e n t a t i v e of the Secretary
of the T r e a s u r y tal k to you I see s o m e t h i n g of m u c h deeper sig
nificance t han a p u r pose m e r e l y to have a speech mad e to you or
even to be e n t e r t a i n e d or instructed.
I see in it the c h a r a c
teristic impulse of men w ho have grown to m a n h o o d and have l i v e d
in the free air of our dem o c r a c y to d r a w closer to their
political gov e r n m e n t in a time of an x i e t y and stress.
I t h ink
it is a sound impulse and one that shows the h e a l t h and vigor
of our system.
There has b e e n d e m o n s t r a t e d here in our land, as nowhere
else at any time, the capacity for self-government.
An inherent
part of that d e m o n s t r a t e d capac i t y is the accepted tr a d i t i o n
and fact that there is no p r o b l e m of government w h i c h is the
exclusive c o n c e r n of any officer of government, but that all
problems, w h e t h e r of routine or of emergency, w h e t h e r of law, of
p o l i c y or of administration, are the c o m m o n problems of all
citizens, on w h i c h their voices s h ould be h e a r d and to whose
solution t h eir acts must give effect.
It is so w i t h the p r o b l e m of p r o d u c t i o n of the mat e r i a l s
of defense.
The fiat of Congress and the Executive, the
a p p r o p r i a t i o n of vast sums of money, the calculations and the
requ i s i t i o n s of m i l i t a r y and naval experts, the over-all p l a n n i n g
by "government agencies —
none of these will pr o d u c e the tools,
the guns, the ships and the airplanes we need.
The great r e s ults
we have g a i n e d so far and the far g r e ater p r o d u c t i o n to come
-2-
have been and w i l l be a c h i e v e d t h r o u g h t h e w i l l i n g d e v o t i o n ——
no t o f i n d u s t r y , f o r so i m p e r s o n a l a word h a s no meaning i n t h i s
c o n n e c t i o n — bu t o f t h e men from t o p t o b o tt o m , management t o
s o - c a l l e d common l a b o r e r , who make i n d u s t r y work.
I t i s so w i t h t h i s prob lem o f i n f l a t i o n , about wh ich,
p r i n c i p a l l y , I p l a n n e d t o t a l k w i t h you t o d a y .
I f we a r e t o
t a k e e f f e c t i v e s t e p s t o a v e r t i t s e v i l s we s h a l l have t o have
more t h a n d e c i s i o n s o f government f i s c a l p o l i c y or a c t s o f
Congress,
F i r s t , we s h a l l need c o u n s e l i n wo rking ou t a w i s e
p o l i c y , and n e x t we s h a l l need u n d e r s t a n d i n g and c o o p e r a t i o n in
making i t e f f e c t i v e .
What we a r e f a c i n g i s n o t t h e s o r t o f i n f l a t i o n t h a t a r i s e s
from p u r e l y m o n e t a r y c a u s e s and i s t h e r e s u l t o f d i s t r u s t o f t h e
national currency.
I t i s n ’ t n e ce ssa ry , th e r e f o r e , to conjure
up v i s i o n s o f a d o l l a r dT
w i n d l i n g : to w ard t h e v a n i s h i n g p o i n t i n
p u r c h a s i n g power, w i t h t h e p r i n t i n g p r e s s e s working o v e r t i m e t o
t u r n ou t an e v e r - i n c r e a s i n g s u p p l y o f c u r r e n c y in e v e r - h i g h e r
denom inations.
We a r e no t i n t h e s l i g h t e s t da n ge r of t h a t s o r t
of i n f l a t i o n .
The k i n d o f i n f l a t i o n o f which we do s t a n d i n imminent
danger i s something q u ite d i f f e r e n t .
I t i s , in b r i e f e s t term s,
t h e s o r t o f i n f l a t i o n which c o n s i s t s o f a r a p i d and s u b s t a n t i a l
g e n e r a l i n c r e a s e i n p r i c e s c a u s e d by a g r e a t i n c r e a s e i n money
payments and t h e r e f o r e i n p u r c h a s i n g power, ac comp ani ed by a
l a c k o f i n c r e a s e o r an a c t u a l d e c r e a s e i n t h e p r o d u c t i o n o f
consumer goods — i n s h o r t , t o o many b u y e r s and t o o many d o l l a r s
In t h e market and t o o few goods t o be s o l d .
The b e g i n n i n g s o f t h a t s o r t o f an i n f l a t i o n a r e a l r e a d y
under way.
W h o l e s a l e p r i c e s o f g e n e r a l c om m o di ti es have
in c r e a s e d ap p ro x im a te ly I f p e r c e n t s in c e the f i r s t of t h i s y e a r ;
t h a t i s from 60 on an i n d e x o f wh ich t h e a v e r a g e o f t h e y e a r
1926 i s 10 0 , t o a p p r o x i m a t e l y 92 in O c t o b e r ,
The f a c t t h a t th e
commodity i n d e x i s s t i l l below t h e a v e r a g e f o r any y e a r from
1 9 1 7 “to 1929 i s n o t n e a r l y so s i g n i f i c a n t as t h e r a p i d i t y of
i t s r i s e in t h e l a s t t e n months, and even more s t r i k i n g and s i g
n i f i c a n t i s t h e i n c r e a s e i n t h e same t i m e of about 30 p e r c e n t in
t h e p r i c e s o f 26 b a s i c c o m m o d i t i e s .
T he se i n c r e a s e s a r e a t a
r a t e which s u g g e s t s t h e p a t t e r n a t l e a s t o f t h e e a r l y s t a g e s o f
t h e g r e a t p r i c e u p h e a v a l o f 1 9 1 5 t o 1 9 2 1 , when w h o l e s a l e p r i c e s
went from an i n d e x l e v e l o f 66 i n S ep te m b er , 1 9 1 .5 , t o 166 in
J u n e , 1 9 2 0 , and t h e n dropped i n j u s t one y e a r t o 9 3 ,
That was
a p e r i o d i n which t h e c o s t o f l i v i n g was d o u b l e d .
T he r e i s no need t o t e l l a g r e a t a u d i e n c e o f bu si n es sm en
o f t h e r u i n o u s c o n s e q u e n c e s of i n f l a t i o n .
You m a n u f a c t u r e r s of
C o n n e c t i c u t a r e o n l y t o o w e l l aware o f t h e d i s o r g a n i z a t i o n o f
b u s i n e s s , o f t h e d i s l o c a t i o n i n e v e r y p h a s e o f economic l i f e ,
which accompany and f o l l o w an u n r e s t r a i n e d r i s e in p r i c e s .
3B u s i n e s s m e n m a y m a k e h i g h profits in a time of inflation, but
those profits are l i k e l y to prove in the end as unreal and u n s u b
stantial as a dream.
Farmers may earn h i g h prices for their
crops, but those h i g h prices must always be b a l a n c e d against
the d e f l a t i o n and b a n k r u p t c y and m i s e r y that come w i t h a p r ice
collapse.
L a b o r m a y earn h i g h wages in a time of inflation,
yet the r i s i n g cost of l i v i n g wipes out those gains, and in fact
may act as a flat t a x u p o n all wages i rrespective of the
individual's c a p a c i t y to pay.
T h ere is no real profit for
anyone in the tempest of i n f lation except for those groups in
any community, h a p p i l y few in number, who try to exploit an
abnormal situation for their own gain.
We can all agree, therefore, that inflation is dangerous
and should be a v o i d e d at all costs.
But the question you m ay
well ask, and the qu e s t i o n you are amply entitled to ask, is
what your G o v e r n m e n t proposes to do about it,
I can assure you
from m y d a y - t o - d a y w o r k at the T r e a s u r y that no p r o b l e m occupies
more of the time and thought of those w ho direct the finance
and fiscal po l i c i e s of this country.
What disturbs us p a r t i c u l a r l y is the swiftly g r o w i n g gap
b e t w e e n the amount of purchasing, power in the hands of our
public and the d w i n d l i n g supply of goods that can satisfy that
demand.
Accordingly, we at the T r e a s u r y must think, and t h i n k
hard, h o w to n a r r o w that gap, for that is one essential w a y to
keep inflation in check.
To b e g i n with, there are c e r t a i n obvious courses.
We
have already seen e n a cted a t ax b i l l w h i c h t o g ether w i t h p r e
v i o u s l y e n a cted l e g i s l a t i o n should p r o vide some $12 billi o n s
of revenue in the fiscal year 19^-2 and a s u b s t antially greater
amount in l a t e r years.
This will c o n s titute Federal t a x a t i o n
on a scale w i t hout p r e cedent in the h i s t o r y of this republic.
Mi l l i o n s who h a v e never b e f o r e h a d to pay taxes w ill have to do
so now, and m i l lions mor e will feel the a d ded impact of this
t ax b u r d e n in h e a v i e r excise taxes on m a n y commodities in daily
use.
It is not e n o u g h to impose n e w taxes; it is the p a r t i c u l a r
job of the T r e a s u r y to collect them.
In this conn e c t i o n I
should like to stress the importance of the n ew T a x Savings
Notes w h i c h were first issued in August to enable taxpayers to
save by installments for the t a x payments that will become due
on M a r c h 1 5 , The corporatio ns of A m e r i c a hav e been q u ick to
see the advantages to t h e m selves of b u y i n g large amounts of
these notes and e a r ning the interest that goes w i t h them.
But mor e can be done to acquaint individual taxpayers wit h the
advantages of s a v i n g s y s t e m a t i c a l l y and r e g u l a r l y to meet their
tax bills.
In an effort to r e a c h the individual taxpayer, the
T r e a s u r y r e c e n t l y p r e p a r e d a folder c a l l e d "Know Your Taxes"
w h i c h shows at a glance just h o w m u c h every taxpayer will h a v e
to pay under the 19^-1 R e v e n u e Act.
It w o u l d be a real service
if you, as the heads of c o rporations and the employers of t h o u
sands upon t h o u s a n d s of h i ghly p a i d w o r k i n g people, could help
to d i s t ribute this folder and thus p o p u l a r i z e the notion of
saving for taxes.
T h ese folders are available at the T r e a s u r y
and will be f u r n i s h e d to you gladly if you t h ink you can use
them to good effect.
But the gap is gr o w i n g so fast that
$12 b i l lions or even
We shall, it seems
apparent, h a v e to t a x still more h e a v i l y in the coming year.
In this effort in w h i c h all the energies of this country are
engaged, all the people wil l have to b e a r an increased share
except perhaps those at the v e r y b o t t o m of the ladder who are
even n o w l i v i n g on a subsistence, or n e a r l y subsistence, level.
Y o u will r e m e m b e r that exemptions were l o w e r e d in the present
tax b ill to $750 a year for a single m a n and $1500 for a m a r r i e d
taxpayer.
B e fore you r e a c h the c o n c l u s i o n that these exemp
tions should be still further lowered, I can only suggest that
you put y o u rself in the place of the m a r r i e d m an earning $30
a w e e k w i t h no investments to fall b a c k upon, w ith a r i s i n g cost
of l i v i n g t a k i n g a share of his m e a g e r income every day.
There
is a point at w h i c h the least fortunate among us simply cannot
be a s ked to do more.
N e v e r t h e l e s s b o t h price considerations
and government fiscal co n s i d e r a t i o n s m ake imperative a new ta x
p r o g r a m that will be as sweeping as possible, and as p r o d uctive
of r e v enue as it can be m ade w i t h o u t c r e a t i n g severe hardships
or dangerous distu r b a n c e s of our economy.
$15 bi l l i o n s in r e v e n u e will not close it.
A l ong w i t h h e a v i e r taxation we shall have to w i d e n and
deep e n the sale of De f e n s e Savings Bonds during the coming year.
I t h i n k you all k n o w about these Bonds and about the Savings
Stamps w h i c h were issued so that those w i t h the smallest amounts
of spare income c o uld invest in small installments.
The sales
of these B o n d s are n o w a p p r o a c h i n g the $2 b i l l i o n mark, only a
little over six months after the D e f ense Savings p r o g r a m was
launched.
We at the T r e a s u r y r e g a r d this as a satisfactory
beginning.
We are especially e n c o u r a g e d to find that O c t o b e r
sales were more than l6 percent a h ead of those for September,
that the sales of the Series E Bonds, those of the smallest
denominations, a c c o u n t e d for almost h a l f of the O c t ober total,
and that the sales of Savings Stamps rose by 20 percent in
O c t o b e r over those of the p r e c e d i n g month.
These are good signs,
yet I w o u l d not be f r ank w i t h you if I did not say that we must
do a great deal better.
The s o l ution most often p r e s s e d u p o n us b y friends outside
of W a s h i n g t o n is to revive the old L i b e r t y L o a n methods of
selling G-overnment bonds.
I t h i n k it may interest you to k n o w
w hy we do not b e l i e v e another L i b e r t y L o a n drive w o u l d be
effective in the fight against inflation.
Investment
in
L i b e r t y Bonds, as you m ay remember, was u n l i m i t e d as to amount;
that is, a w e a l t h y pers o n w i t h large amounts of idle capital
could b u y these Bonds to any extent and collect handsome
interest on them. Moreover, m a n y L i b e r t y Bonds were p u r c h a s e d
45w i t h funds b o r r o w e d from banks, and their sale was often
a c c o m p a n i e d b y all c o n c e ivable devices of h i g h - p r e s s u r e s a les
manship.
The result was, first, that the Li b e r t y Loans failed
to a great extent to enlist true savings, and second, that too
m any bonds w e r e t h r o w n on the market at a loss to the b u yers
after the emergency.
We feel that the present m e t h o d is sounder
in that we limit subsc r i p t i o n s to $5000 m a t u r i t y value a year
in the case of the E Bonds, and that we do not sell these bonds
to banks at all.
E v e n t h o u g h we m a y continue to employ as a
su p p l e m e n t a r y device more t r a d itional f i n a n c i n g methods, the
widest p o s s i b l e d i s t r i b u t i o n of Savings Bonds is ur g e n t l y
n e c e s s a r y for at least three reasons.
First, it has an important effect on national morale in
that, it offers an o p p o r t u n i t y for all citizens to p a r t i c i p a t e
in the common effort.
Second, and most important, r e g u l a r v o l u n t a r y purchase
of Savings Bonds w i t h d r a w s m o n e y from cons u m p t i o n expenditure
and thus re l i e v e s p r e s s u r e on prices.
Third, the savings thus cr e a t e d w i l l be a powerful p r o t e c
tive force against the danger of a p o s t - w a r depression.
The sale of these Defense Bonds can be gr e a t l y e n l arged in
the comi n g year.
This can be done b y spreading the sale down
to the smallest c o m m u n i t y and thr o u g h o u t every one of the 46
States.
We h a v e only b e g u n our efforts in this direction.
I
k n o w that you in C o n n e cticut have made a fine r e c o r d up to now
in the sale of D e fense Bonds, yet I suspect that there are
m a n y communities, even in your compact State, w h i c h do not yet
have an efficient local D e f e n s e Savings committee.
Moreover,
we shall not m a k e a success of our D e f ense Savings program,
either as a c h e c k u p o n inflation or a c o n t r i b u t i o n to A m e r i c a n
morale, unless we mak e a success of the p a y roll allotment pla n
w h e r e b y wage earners can set aside a p o r t i o n of their p ay each
w e e k to b u y a bond.
Our pa y r o l l allotment p l a n is n o w in
ope r a t i o n in some 6 , 000 companies e m p l o y i n g about 4 m i l l i o n
workers, but the degree of p a r t i c i p a t i o n is not yet what we
should like it to be.
If your plant h a p pens to be organized,
and if your w o r k e r s express a desire t h r o u g h their u n i o n to
join in the p a y r o l l allotment scheme, I hope very m u c h that you
as the m a n a g e r s w ill make f a c i lities available In your cashier's
office or elsewhere in your plant.
If your plant is not
organized, you w ill be d o ing a great service to your workers
and to your c o u n t r y by b r i n g i n g the p a y r o l l allotment pla n to
their at t e n t i o n and m a k i n g it po s s i b l e for t h e m to save on a
systematic and re g u l a r basis.
I have m e n t i o n e d i n c r eased taxes and i n c reased Defense
Savings as two of the obvious ways to a t t a c k inflation.
There
-6
are at least two others w h i c h may "be m e n t i o n e d briefly.
One
is the r e d u c t i o n of non— d e f ense federal, state, and local
g o v e rnmental expenditure.
Y o u m a y have r e a d of the first
m e e t i n g the other d a y of the n e w committee w h i c h includes the
t a x i n g and a p p r o p r i a t i n g committees of the House and Senate,
w h i c h was f o r m e d s p e c i f i c a l l y to study t-he whole p r o b l e m of
n o n — essential federal spending.
S e c r e t a r y M o r g e n t h a u has been
made a m e m b e r of this c o m mittee and looks to its meeti n g s to
translate into a c tion the r e c o m m e n d a t i o n s for economy w h i c h he
has so often made in his p u b l i c statements.
I suggest that you
keep your eyes u p o n the w o r k i n g s of this committee and that you
also encourage your local c o m m u n i t y to make a start t o w a r d
greater e c o n o m y in local government.
The last of these obvious a n t i - i n f l a t i o n a r y methods is
the control of prices, a nd I shall say only a w o r d or two on
this subject.
We at the T r e a s u r y felt that the p r ice control
bill as i n t r o d u c e d into the House of R e p r e s e n t a t i v e s h ad the
p o s s i b i l i t y of b e i n g a pow e r f u l w e a p o n in the fight against
inflation.
The a m e n dments c o n c e r n i n g f arm prices have g r e atly
w e a k e n e d the bill, but there is no r e a s o n to be d i s c o u r a g e d
b e f o r e the b ill has a c t ually b e c o m e law.
It is no w before the
House and it must yet pass t h r o u g h the Senate, and in b o t h
houses there is a g r o w i n g desire to mak e the bil l the most
effective instrument possible.
C e r t a i n l y a d e t e r m i n e d effort
will be made to see that the b ill as it finally reaches the
P r e s i d e n t 1s d e s k shall be a brake u p o n the r i s i n g cost of l i ving
and shall f u r n i s h some r e a s s u r a n c e to the Am e r i c a n con s u m i n g
public.
No one of these methods —
taxation, savings, economy,
or price control —
can serve b y itself to prevent inflation.
W h a t e v e r we do must be c o m p o u n d e d of m a n y methods and cannot
be l i m i t e d to the obvious m e t hods alone.
We can all of us t h i n k of a n u m b e r of less obvious
devices w h i c h might fu r n i s h a d ded checks u pon inflation.
One
of these, for example, w o u l d be the increase of our p r o d u c t i o n
in fields that do not compete either in m a n p o w e r or m a t erials
w i t h p r o d u c t i o n for defense.
That means for one thing an in
crease in the p r o d u c t i o n of food, w h i c h is n e e d e d n o w not only
for ourselves but for m i l lions in E n g l a n d who are d e p e n d i n g
upon us, and will be n e e d e d on a t r e m endous scale after the
w a r w h e n hu n d r e d s of millions on the Continent of E u rope m a y be
l o o k i n g to us to k e e p them from starvation.
C e r t a i n l y we should
never forget that m i l l i o n s of our own p e o p l e are still u n d e r f e d
and u n d e r clothed.
At a time like this w h e n p u r c h a s i n g power
is o u t r u n n i n g production, we must cut d o w n on civilian c o n s u m p
tion that w o u l d compete w i t h defense, but we might also enlarge
civilian c o n s u m p t i o n where no such c o m p e t i t i o n for r a w
m a t e rials exists.
~7
We might, and I t h i n k we should, consider seriously the
i m p o sition of selective credit controls,
Our present emer
gency is so great that there s h ould he no r o o m in our national
effort for s p e c u l a t i o n of any kind*
In this kind of control
the h a nks of A m e r i c a might well make themselves, as S e c retary
M o r g e n t h a u s u g g e s t e d last month, the sentinels of the nati o n
in l o o k i n g c a r e f u l l y at all appli c a t i o n s for loans and in
g r a n t i n g only those w h i c h w o u l d not compete in any way w i t h
defense production, and p a r t i c u l a r l y in d e n ying loans for the
speculative h o l d i n g of commodities.
We shall he d o i n g m a n y u n p r e c e d e n t e d things before t h i s ’
crisis is over.
A l r e a d y a system of pri o r i t i e s has h e e n im
p o s e d over a w i d e range of m a t e r i a l s that u s e d to he free for
everyone to h u y and use. The t i m e is c o m i n g w h e n we m a y have
to carry p r i o r i t i e s and price control a h i g step further.
We m ay come in the end to a s y stem of a p p o r t i o n i n g or r a t i o n
ing consumer use of those goods w h i c h a r e n e eded most u r g e n t l y
for the d e f e n s e effort.
After all, the d i m e nsions of this w o r l d struggle are
h e y o n d any of our p r e v i o u s conceptions.
The dimensions of
our own part in it are only d i mly r e a l i z e d h y nine Americans
out of ten.
We have set as our t a s k a p r o g r a m of p r o d u c t i o n
d e s i g n e d to o u t - p r o d u c e H i t l e r 1s . G e rmany and all the industrial
areas w h i c h H i t l e r has seized.
It will do us no g o o d in this effort to he f r i g h t e n e d hy
words or to he d i s m a y e d h y the size of the job ahead of us.
B u s i n e s s will have to mak e sacrifices, farmers will have to
mak e sacrifices, w a g e earners w ill have to make sacrifices
b e f o r e we hav e w o n the v i c t o r y w h i c h is our ann o u n c e d goal.
I k n o w -that you are not g o i n g to he dismayed.
You are
showing al r e a d y hy the p r o d u c t i v e achievements of your i n d u s
tries that you are heart and soul b e h i n d this effort to make
Am e r i c a secure.
We cannot hope to live se c u r e l y in a w o r l d d o m i n a t e d hy
any group or race w h ose b a sic moti v e is enslavement — — *** the
enslavement of its own p e ople and of every peop l e that has
tried to pr o g r e s s in freedom.
Americans hav e never f o u n d it po s s i b l e to he isolated
from the world, nor have the y f o und it consistent w i t h their
honor to he indifferent to aggr e s s i o n and tyranny.
The w o r l d
shrinks, and n e ver im?re r a p i d l y than in these recent years.
The d e a t h of free gove r n m e n t s one h y one, if our inactivity
should sanction it, holds for us the imminent peril of the
d e a t h of f r e e d o m here.
t
-g-
We are not s t r a ining our pro d u c t i v e resources and
m o r t g a g i n g our financial future for the sake of any mystic
f o r mula of a b e t t e r future.
We mor t g a g e our future to save
our future.
We g i r d ourselves.
We summon our men and our
resources to w o r k in u n i t y that our future m a y be our own.
We see w o r k to be done to make a b e t t e r order here.
But.we
put that aside for the moment w h ile we take up the'task of
m a k i n g c e r tain that we can, w h e n the time comes, w o r k our own
changes in our own. w a y and that we shall not accept what a w o r l d
conqueror sees fit to force u p o n us.
On the great seal- of t h e . U n i t e d States there is a phrase
w h i c h whe n t r a n s l a t e d means,. "A n e w order o f the ages,"
That
ne w order was the order of G-overnment of, by and for the
people.
T o d a y we h ear the blasphemy, the obscenity of the
use of the w o r d s "new order" to d e s cribe a r e v e rsion to
tyranny, the abasement of mankind.
That is a system that is
old in the world, that goes b a c k to the days when men were
just b e g i n n i n g their struggle away from barbarism.
There can be no n e w order except in the elevation of the
capacity and the d i g n i t y of man.
The concept of an order
that w o u l d swing the w o r l d b a c k in full cycle b e y o n d the dark
ages is an insult to G-od and to man.
Let us be r e ady to make any sacrifice that no such
concept be a c c e p t e d and no such evil b e f a l l us,
oOo^
T R E A S U R Y DEPARTMENT
Washington
Press Service
No. 2g~39
(The f o l l o w i n g address by Herbert E. Gaston,
Assistant S e c r e t a r y of the Treasury, before the annual
m e e t i n g of the M a n u f a c t u r e r s A s s o c i a t i o n of Connecticut
at the N e w H a ven L a w n Club, N e w Haven, Connecticut, is
scheduled for 1 p. m . , Ea s t e r n S t a n d a r d Time, Wednesday,
Nov e m b e r 12, 19^-1, and is for release u p o n d e l ivery at
that t i m e . )
I b r i n g you the greetings of Sec r e t a r y M o r g e n t h a u and his
thanks as w ell as my own for the oppo r t u n i t y to speak to you.
In this hour whe n the best of your energies, your brains
and your skill are b e i n g de v o t e d to b u i l d i n g and to t e s ting the
machines and the m a t e r i a l s needed to make secure our h e r itage
of freedom, our p o l i t i c a l and economic institutions are t h e m
selves on the p r o v i n g ground.
While we are t e s t i n g ships and
guns, tanks a nd planes, we are t e s t i n g also our ability as a
nation and a p e ople to coordinate our effort toward a great goal,
our ability to produce, our ability to organize to prevent
economic anarchy or disaster.
In your desire to have a r e p r e s e n t a t i v e of the Secretary
of the T r e a s u r y tal k to you I see s o m e t h i n g of m u c h deeper sig
nificance t h a n a purpose m e r e l y to have a speech m ade to you or
even to be e n t e r t a i n e d or instructed.
I see in it the c h a r a c
teristic impulse of men who have grown to m a n h o o d and have l i v e d
in the free air of our d e m o cracy to d r a w closer to their
political g o v e rnment in a time of a n x iety and stress.
I think
it is a sound impulse and one that shows the h e a l t h and v i gor
of our system.
There has b e e n d e m o n s t r a t e d here in our land, as nowhere
else at any time, the capacity for self-government.
An inherent;
part of that d e m o n s t r a t e d c a p acity is the accepted tra d i t i o n
and fact that there is no p r o b l e m of government itfhich is the
exclusive co n c e r n of any officer of government, but that all
problems, w h e t h e r of routine or of emergency, wh e t h e r of law, of
p o l i c y or of administration, are the c o m m o n p r o blems of all
citizens, on w h i c h their voices shou l d be h e a r d and to whose
solution their acts must give effect.
It is so w i t h the p r o b l e m of p r o d u c t i o n of the m a t e rials
of defense.
The fiat of Congress and the Executive, the
a p p r o p r i a t i o n of vast sums of money, the calculations and the
r e q u isitions of m i l i t a r y and naval experts, the over-all p l a n n i n g
by "government agencies —
none of these will p r o duce the tools,
the guns, the ships and the airplanes we need.
The great results
we have g a i n e d so far and the far greater p r o d u c t i o n to come
-
2-
have been and will be ach i e v e d t h r ough the w i l l i n g de v o t i o n —
not of i n d ustry
for so impersonal a w o r d has no m e a n i n g in this
connec ion
but of the m e n from top to bottom, management to
s o - c alled c o m m o n laborer, who m ake industry work.
,
4It: *s s 2 w i t h this p r o b l e m ' o f inflation, about which,
principally, I p l a n n e d to talk w i t h you today.
If we are to
ake effective steps to avert its evils we shall have to have
more than decisions of government fiscal p o l i c y or acts of
ongfess*
First, we shall need counsel in w o r k i n g out a wise
policy, and next We shall need u n d e r s t a n d i n g and c o o p e r a t i o n in
m a k i n g it effective.
*
What we are f a c i n g is not the sort of inflation that arises
from p u rely m o n e t a r y causes and is the result of distrust of the
national currency.
It i s n ’t necessary, therefore, to conjure
up visions of a d o l l a r d w i n d l i n g towa r d the v a n i s h i n g point in
p u r c h a s i n g power, w i t h the p r i n t i n g presses w o r k i n g overtime to
turn out an ever— i n c r e a s i n g supply of c u r r e n c y in ever—h i g h e r
denominations.
We are not in the slightest danger of that sort
of m f l a t i q n .
The k i n d of inflation of w h i c h we do stand in imminent
danger is s o m e t h i n g quite different.
It is, in briefest terms,
the sort of inflation w h i c h consists of a r a p i d and substantial
general increase in prices caused by a great increase in m o ney
payments and t h e r e f o r e in p u r c h a s i n g power, acco m p a n i e d by a
lac k of increase or an actual decre a s e in the prod u c t i o n of
consumer goods —
in short, too m a n y b u yers and too m a n y dollars
m the market and too f e w goods to be sold.
The b e g i n n i n g s o f t h a t s o r t o f an i n f l a t i o n a r e a l r e a d y
under way.
W h o l e s a l e p r i c e s o f g e n e r a l c om mo ditie s have
i n c r e a s e d a p p r o x i m a t e l y 15 p e r c e n t s i n c e t h e f i r s t o f t h i s y e a r t h a t i s from ¿0 on an i n d e x o f which t h e a v e r a g e o f t h e y e a r
192b i s 1 0 0 , t o a p p r o x i m a t e l y 92 in O c t o b e r .
The f a c t t h a t th e
commodity i n d e x i s s t i l l below t h e a v e r a g e f o r any y e a r from
1 9 1 7 "to 1929 i s n o t n e a r l y so s i g n i f i c a n t as t h e r a p i d i t y of
i t s r i s e i n t h e l a s t t e n months, and even more s t r i k i n g and s i g
n i f i c a n t i s t h e i n c r e a s e i n t h e same ti m e of about 30 p e r c e n t i n
t h e p r i c e s o f 2$ b a s i c c o m m o d i t i e s .
Thes e i n c r e a s e s a r e a t a
r a t e which s u g g e s t s t h e p a t t e r n a t l e a s t o f t h e e a r l y s t a g e s o f
» h e g r e a t p r i c e Up heaval o f 1 9 1 5 "to 1 9 2 1 , when w h o l e s a l e p r i c e s
went from an i n d e x l e v e l o f 63 i n S ep te m b er , 1 9 1 5 , t o 166 i n
J u n e , ^ 19 2 0 , and t h e n dropped i n j u s t one y e a r t o 9 3 ,
That was
a p e r i o d i n which t h e c o s t o f l i v i n g was d o u b l e d .
There is no n e e d to tell a great audience of b u s i n e s s m e n
of the ruinous c o n s e quences of inflation.
Y o u ma n u f a c t u r e r s of
Connecticut are only too well aware of the d i s o r g a n i z a t i o n of
business, of the d i s l o c a t i o n in every p h ase of economic life,
w h i c h a c c o m p a n y and f o l l o w an u n r e s t r a i n e d rise in prices.
B u s i n e s s m e n m a y m a k e h i g h profits in a time of inflation, but
those profits are l i k e l y to prove in the end as unreal and unsub
stantial as a dream.
Farmers ma y earn h i g h prices for their
crops, but those h i g h prices must always be b a l a n c e d against
the d e f l a t i o n and b a n k r u p t c y and m i s e r y that come w i t h a price
collapse.^ L a b o r m a y earn h i g h wages in a time of inflation,
yet the r i s i n g cost of l i v i n g wipes out those gains, and in fact
may act as a flat t a x u p o n all wages i rrespective of the
individual's c a p a c i t y to pay.
There is no real profit for
anyone in the tempest of inflation except for those groups in
any community, h a p p i l y few in number, who try to exploit an
abnormal situation for their own gain.
We can all agree, therefore, that inflation is dangerous
and should be a v o i d e d at all costs.
But the question you m ay
well ask, and the q u e stion you are a m ply entitled to ask, is
what your G o v e r n m e n t proposes to do about it.
I can assure you
from my d a y - t o - d a y w o r k at the T r e a s u r y that no p r o b l e m occupies
more of the time and thought of those who direct the finance
and fiscal p o l icies of this country,
What disturbs us p a r t i c u l a r l y is the swiftly g r o w i n g gap
b e t w e e n the amount of p u r c h a s i n g power in the hands of our
public and the d w i n d l i n g supply of goods that can satisfy that
demand.
Accordingly, we at the T r e a s u r y must think, and t h ink
hard, h o w to n a r r o w that gap, for that is one essential w a y to
keep inflation in check.
To b e g i n with, there are ce r t a i n obvious courses.
We
have already seen e n a cted a t ax bil l w h i c h together w i t h p r e
v i o u s l y e n a cted l e g i s l a t i o n should provide some #12 billions
of revenue in the fiscal year 19^2 and a s u b s t antially greater
amount in l a t e r years.
This will constitute Federal ta x a t i o n
on a scale w i t hout p r e cedent in the h i s t o r y of this republic.
M i l lions who hav e never befo r e h a d to p ay taxes will have to do
so now, and mi l l i o n s more will feel the added impact of this
t ax b u r d e n in h e a v i e r excise taxes on m a n y commodities in daily
use.
It is not e n o u g h to impose n e w taxes; it is the p a r t i c u l a r
job of the T r e a s u r y to collect them.
In this conn e c t i o n I
should like to stress the importance of the n e w T a x Savings
Notes w h i c h were first issued in August to enable taxpayers to
save by installments for the t a x payments that will become due
on M a r c h 1 5 . The corporations of A m e r i c a hav e been quick to
see the advantages to themselves of b u y i n g large amounts of
these notes and earning the interest that goes w i t h them.
But more can be done to acquaint individual taxpayers w ith the
advantages of s a v i n g s y s t e m a t i c a l l y and r e g u l a r l y to meet their
tax bills,
In an effort to r e a c h the individual taxpayer, the
T r e a s u r y r e c e n t l y p r e p a r e d a folder c a lled "Know Your Taxes"
w h i c h shows at a glance just h o w m u c h every taxpayer will h a v e
to pay under the 19^-1 R e v e n u e Act,
It w o u l d be a real service
if you, as the h e ads of c orporations and the employers of t h o u
sands upon t h o u s a n d s of h i g h l y p a i d w o r k i n g people, could help
to d i s t ribute this folder and thus p o p u l a r i z e the notion of
saving for taxes.
T h e s e folders are available at the T r e a s u r y
and will be f u r n i s h e d to you glad l y if you t h ink you can use
them to good effect.
But the gap is gr o w i n g so fast that $12 bi l l i o n s or even
$15 bil l i o n s in r e v e n u e will not close it.
We shall, it seems
apparent, h a v e to t a x still more h e a v i l y in the coming year.
In this effort in w h i c h all the energies of this country are
engaged, all the peop l e wil l have to bea r an i n c r eased share
except perhaps those at the v ery b o t t o m of the ladder who are
even n o w l i v i n g on a subsistence, or n e a r l y subsistence, level.
Y o u will r e m e m b e r that exemptions were l o w e r e d in the present
tax bill to $750 & year for a single m a n and $1500 for a m a r r i e d
taxpayer.
B e f o r e you r e a c h the c o n c l u s i o n that these exemp
tions should be still further lowered, I can only suggest that
you put y o u rself in the place of the m a r r i e d m an earning $30
a w e e k w i t h no investments to fall b a c k upon, w ith a r i s i n g cost
of l i v i n g t a k i n g a share of his m e a g e r income every day.
There
is a point at w h i c h the least fortunate a m ong us simply cannot
be a s k e d to do more.
N e v e r t h e l e s s b o t h price c o nsiderations
and government fiscal c o n s i d e r a t i o n s make imperative a n ew tax
p r o g r a m that will be as swe eping as possible, and as p r o d uctive
of revenue as it can be mad e w i t hout c r e a t i n g severe hardships
or dangerous d i s t u r b a n c e s of our economy.
A l o n g w i t h h e a v i e r taxat i o n we shall have to w i d e n and
d e epen the sale of D e f ense Savings Bonds .during the coming year.
I t h ink you all k n o w about these Bonds and about the Savings
Stamps w h ich were issued so that those w i t h the smallest amounts
of spare income c o u l d invest in small installments.
The sales
of these B o n d s are n o w a p p r o a c h i n g the $2 b i l l i o n mark, only a
little over six m o nths after the D e f e n s e Savings p r o g r a m was
launched.
We at the T r e a s u r y r e g a r d this as a s atisfactory
beginning.
We are especially e n c o u r a g e d to find that O c t o b e r
sales were more than 16 percent a h e a d of those for September,
that the sales of the Series E Bonds, those of the smallest
denominations, a c c o u n t e d for almost hal f of the Oc t o b e r total,
and that the sales of Savings Stamps rose by 20 percent in
O c t o b e r over those of the p r e c e d i n g month.
These are good signs
yet I w o u l d not be f r a n k w i t h you if I did not say that we must
do a great deal better.
The so l u t i o n most often p r e s s e d u p o n us b y friends outside
of W a s h i n g t o n is to revive the old L i b e r t y L o a n methods of
selling Government bonds.
I t h i n k it m ay interest you to k now
wh y we do not b e l i e v e another L i b e r t y L o a n drive w o u l d be
effective in the fight against inflation.
Investment
in
L i b e r t y Bonds, as you m ay remember, was u n l i m i t e d as to amount;
that is, a w e a l t h y pers o n W i t h large amounts of idle capital
could b u y these Bonds to any extent and collect handsome
interest on them. Moreover, m a n y L i b e r t y Bonds were p u r c h a s e d
~5W i t h funds b o r r o w e d from banks, and their sale was often
a c c o m p a n i e d b y all c o n c eivable devices of h i g h - p r e s s u r e sales
manship.
The result was, first, that the L i b e r t y L o ans failed
to a great extent to enlist true savings, and second, that too
m a n y bonds w e r e t h r o w n on the market at a loss to the buye r s
after the emergency.
We feel that the present m e t h o d is sounder,
in that we limit s u b s c riptions to $5000 m a t u r i t y value a year
in the case of the E Bonds, and that we do not sell these bonds
to banks at all.
E v e n t h o u g h we m a y continue to employ as a
suppl e m e n t a r y device more t r a d itional f i n a n c i n g methods, the
widest po s s i b l e d i s t r i b u t i o n of Savings Bonds is u r g e n t l y
n e c e s s a r y for at least three reasons.
First, it has an important effect on national morale in
that it offers an o p p o r t u n i t y for all citizens to p a r t i c i p a t e
in the common effort.
Second, a nd most important, r e g u l a r v o l u n t a r y purchase
of Savings Bonds w i t h d r a w s m o n e y from cons u m p t i o n expenditure
and thus re l i e v e s p r e s s u r e on prices.
Third, the savings thus cr e a t e d w i l l be a powerful p r o t e c
tive force against the danger of a p o s t - w a r depression.
The sale of these Defense Bonds can be g r e a t l y enlarged in
the c o ming year.
This can be done by s p r e ading the sale down
to the smallest c o m m u n i t y and thro u g h o u t every one of the
States.
We h a v e only b e g u n our efforts in this direction.
I
k n o w that you in C o n n e cticut have made a fine r e c o r d up to now
in the sale of De f e n s e Bonds, yet I suspect that there are
m a n y communities, even in your compact State, w h i c h do not yet
have an efficient local D e f e n s e Savings committee.
Moreover,
we shall not m a k e a success of our Defense Savings program,
either as a c h e c k u p o n inflation or a c o n t r i b u t i o n to A m e r i c a n
morale, unle ss we m a k e a success of the pa y r o l l allotment p lan
w h e r e b y wage earners can set aside a p o r t i o n of their p a y each
w e e k to b u y a bond.
Our p a y roll allotment p l a n is n o w in
ope r a t i o n in some 6 , 000 companies e m p l o y i n g about 4- m i l l i o n
workers, but the degree of p a r t i c i p a t i o n is not yet what we
should like it to be.
If your plant h a p p e n s to be organized,
and if your w o r k e r s express a desire t h r o u g h their u n i o n to
join in the p a y r o l l allotment scheme, I hope very m u c h that you
as the m a n a g e r s w ill make facilities available in your c a s h i e r ’s
office or elsewhere in your plant.
If your plant is not
organized, you wil l be d o i n g a great service to your w o r kers
and to your c o u n t r y b y b r i n g i n g the p a y r o l l allotment p lan to
their att e n t i o n and m a k i n g it pos s i b l e for t h e m to save on a
systematic and re g u l a r basis.
I have m e n t i o n e d inc r e a s e d taxes and i n c r eased Defense
Savings as two of the obvious ways to a t t a c k inflation,
There
-6
are at least two others w h i c h may be m e n t i o n e d briefly.
One
is the r e d u c t i o n of n o n - d efense federal, state, and local
g o vernmental expenditure.
Y o u m a y have r e a d of the first
m e e t i n g the other da y of the n e w committee w h i c h includes the
t a xing and a p p r o p r i a t i n g committees of the House and Senate,
w h i c h was f o r m e d s p e c i f i c a l l y to study the whole p r o b l e m of
n o n - e ssential federal spending.
S e c r e t a r y M o h g e n t h a u has been
made a member of this committee and looks to its meetings to
translate into action the r e c o m m e n d a t i o n s for economy w h i c h he
has so often made in his public statements.
I suggest that you
keep your eyes u p o n the w o r k i n g s of this committee and that you
also encourage your local c o m m u n i t y to make a start t o ward
greater e c onomy in local government.
The last of these obvious a n t i - i n f l a t i o n a r y methods is
the control of prices, and I shall say only a w o r d or two on
this subject.
We at the T r e a s u r y felt that the price control
bill as i n t r o d u c e d into the House of R e p r e s e n t a t i v e s had the
p o s s i b i l i t y of b e i n g a p o w erful w e a p o n in the fight against
inflation.
The a m e n dments c o n c e r n i n g f arm prices have greatly
w e a k e n e d the bill, but there is no r e a s o n to be d i s c o u r a g e d
b e f o r e the bil l has a c t ually b e c o m e law.
It is now before the
House and it must yet pass t h r o u g h the Senate, and in b o t h
houses there is a g r o w i n g desire to make the bill the most
effective instrument possible.
C e r t a i n l y a d e t e r m i n e d effort
will be made to see that the bil l as it finally reaches the
P r e s i d e n t (s d e s k shall be a brake u p o n the r i s i n g cost of l i ving
and shall f u r n i s h some r e a s s u r a n c e to the Am e r i c a n co n s u m i n g
public.
No one of these methods —
taxation, savings, economy,
or price control —
can serve by itself to prevent inflation.
W h a t e v e r we do must be comp o u n d e d of m a n y methods and cannot
be l i m i t e d to the obvious m e thods alone.
We can all of us t h i n k of a n u mber of less obvious
devices w h i c h might f u r nish added checks upo n inflation.
One
of these, for example, w o u l d be the increase of our p r o d u c t i o n
in fields that do not compete either in m a n p o w e r or mat e r i a l s
w i t h p r o d u c t i o n for defense.
That means for one t h ing an in
crease in the p r o d u c t i o n of food, w h i c h is n e e d e d n ow not only
for ourselv es but for millions in E n g l a n d who are d e p e n d i n g
upon us, and will be n e e d e d on a tremendous scale after the
w a r w h e n hundreds of millions on the Continent of E u rope m a y be
l o o k i n g to us to k e e p the m from starvation.
C e r t a i n l y we should
never forget that mi l l i o n s of our own p e o p l e are still u n d e r f e d
and underclothed.
At a time like this w h e n p u r c h a s i n g p o wer
is o u t r unni ng production, we must cut d o w n on civilian c o n s u m p
tion that w o u l d compete w i t h defense, but we might also enlarge
civilian c o n s u m p t i o n where no such c o m p e t i t i o n for r a w
materials exists.
-7 We might, and I t h i n k we should, consider seriously the
i m p o sition of selective credit controls*
Our present emer
gency is so great that there s h ould be no r o o m in our national
effort for s p e c u l a t i o n of. any kind-.
In this kind of control
the banks of A m e r i c a might well make themselves, as Secretary
M o r g e n t h a u s u g g e s t e d last month, the sentinels of the nati o n
in l o o k i n g car e f u l l y at all appli c a t i o n s for loans and in
gr a n t i n g only those w h i c h w o u l d not compete in any way w i t h
defense production, and p a r t i c u l a r l y in d e n ying loans for the
speculative h o l d i n g of commodities.
We shall be d o ing m a n y u n p r e c e d e n t e d things before this
crisis is over.
A l r e a d y a system of pri o r i t i e s has b e e n im
p o s e d over a w i d e range of mat e r i a l s that u s e d to be free for
everyone to b u y and use. The t i m e is c o m i n g w h e n we m a y have
to carry p r i o r i t i e s and price control a b i g step further.
We m a y come in the end to a system of a p p o r t i o n i n g or r a t i o n
ing consumer use of those goods w h i c h a r e n e e d e d most u r g e n t l y
for the d e f e n s e effort.
After all, the d imensions of this w o r l d struggle are
b e y o n d any of our pr e v i o u s conceptions.
The dimensions of
our o wn part in it are only dimly r e a l i z e d b y nine Americans
out of ten.
We have set as our t a s k a p r o g r a m of p r o d u c t i o n
d e s i g n e d to o u t - p r o d u c e H i t l e r 1s G e r m a n y and all the industrial
areas w h i c h H i t l e r has seized.
It will do us no goo d in this effort to be f r i g h t e n e d by
words or to be d i s m a y e d by the size of the job ahead of us.
Bu s i n e s s will have to make sacrifices, farmers will have to
make sacrifices, w a g e earners will have to make sacrifices
b e f o r e we h ave wo n the v i c t o r y w h i c h is our an n o u n c e d goal'.
I k n o w that you are not g o i n g to be dismayed.
You are
showing a l r eady by"the pro d u c t i v e achievements of your i n d u s
tries that you are heart and soul b e h i n d this effort to make
A m e rica secure.
We cannot hope to live s e c urely in a w o r l d d o m i n a t e d by
any group or race w h ose b a s i c motive is enslavement — <
the
enslavement of its own people and of every peop l e that has
tried to progr e s s in freedom,
Americans have never f o u n d it pos s i b l e to be isolated
from the world, nor have they f o und it consistent w i t h their
honor to be indifferent to aggr e s s i o n and tyranny.
The w o r l d
shrinks, and never m$re r a p i d l y than in these recent years.
The d e a t h of free gove r n m e n t s one b y one, if our inactivity
should sanction it, holds for us the imminent peril of the
d e a t h of f r e e d o m here.
\
We are not straining our p r o d uctive resources and
m o r t g a g i n g our financial future for the sake of any mystic
formula of a b e t t e r future.
We m o r t g a g e our future to save
our future.
We gir d ourselves.
We summon our men and our
resources to w o r k in u n ity that our future m a y be our own.
We see w o r k to be done to make a b e t t e r order here.
But we
put that aside for the moment w h ile we take up the task of
m a k i n g c e rtain that we can, -whe n the time comes, w o r k our own
changes in our own w a y and that we shall not accept what a w o r l d
conqueror sees fit to force u p o n us.
On the great seal of the U n i t e d States there is a phrase
w h i c h when t r a n s l a t e d means;,. MA n ew order of the a g e s . ” That
n e w order was the order of G overnment of, by and for the
people.
T o day we hea r the blasphemy, the obscenity of the
use of the w o rds "new order" to d e s cribe a rev e r s i o n to
tyranny, the abasement of mankind.
That is a system that is
old in the world, that goes b a c k to the days when, men were
just b e g i n n i n g their struggle away from barbarism.
There can be no h e w order except in the elevation of the
capacity and the di g n i t y of man,
The concept of an order
that w o u l d swing the w o r l d b a c k in full cycle b e y o n d the dark
ages is an insult to God and to man,
Let us be r e a d y to make any sacrifice that no such
concept be a c c e p t e d and no such evil b e f a l l us.
~o0o
Number and
Percentage
Nature of
Name and Location of Bank Dividend
Date
Authorized
of Dividends
Authorized
Distribution
of Funds by
Dividend
Authorized
Percentage
Authorized
Dividends •Number of
Claimants
to Date
Amount
Claims
Proved
The Potomac Savings Bk of
Georgetown, D. C.
Final
10-16-41
5th
6.27$
$ 126,400
81.77%
0,314
| 2,015,000
The Fort Fairfield NB
Fort Fairfield, Maine
Final
10-8-41
4th
8.535«
86,500
64.-53$
1,345
1,013,700
The Presque Isle NB
Presque Isle, Maine
Final
10-28-41
6th
7.29%
168,800
99.29%
4,60 2
2,314,900
The Carlstadt NB
Carlstadt, New Jersey
Final
10-6-41
5th
7.27%
56,600
92.27$
3,240
778,400
The First NB of
Toledo, Ohio
Final
10*25-41
6th
5-25$
161,100
94.25$
8,505
3,067,700
The First NB of
Boswell, Penna.
Final
10-31-41
5th
4-45$
24,300
55.117$
1,342
547,000
The First NB & Tr.Co of
Frackville, Penna.
Final
IO-I3-4I
4th
4-37$
55,300
84.37$
4,260
1,277,800
The Nescopeck NB
Nescopeck, Penna.
Final
10-3-41
4th
22.4$
84,600
92.4$
1,872
377,700
The Exchange NB of
Pittsburgh, Penna.
Final
10-17-41
7th
13.03$
454,900
98.08$
5,334
3,477,600
The Texas NB of
Fort Worth, Texas
Final
10-10-41
5th
4 .5$
193,100
53*5%
7,336
A,291,000
The First NB of
Clintonville, Wisconsin
Final
IO-4-4I
7th
5 .1 $
61,500
88.6$
2,629
1 ,2 0 5 ,1 0 0
treasury department
Comptroller of the Currency
Washington
Press Service
FOR RELEASE. MORNING NEWSPAPERS
‘ ff *
/
/
During the month ended October 31, 1941, authorizations
were issued to receivers for payments of dividends to the creditors
of eleven insolvent national banks.
Dividends so authorized will
effect total distributions of $1,473,600 to 49,279 claimants who
have proved claims aggregating $20,366,700, or an average payment
of 7.24 percent.
The minimum and maximum percentages of dividends
authorized were 4.37 percent and 22.4 percent, respectively, while
the smallest and largest amounts involved in such payments were
$24,300 and $454,900, respectively.
All eleven dividends author
ized represented final dividend payments.
Dividend payments so
authorized during the month ended October 31, 1941, were as follows:
TREASURY DEPARTMENT
Comptroller of the Currency
Washin
FOR RELEASE, MORNING-NEWSPAPER
Tuesday, November 11, 1941»
11/10/41
Press Service
No. 28-40
hr)\S
During the month ended October 31, 1941, authorizations
541,authoriïatiï
t
sodstotieti|
soauthorizedC
»279claM
anaveragep
vjere issued to receivers for payments of dividends to the creditors
of eleven insolvent national banks.
Dividends so authorized will
effect total distributions of $1,473,600 to 49,279 claimants who
have proved claims aggregating $20,366,700, or an average p a r e n t
of 7.24 percent.
The minimum and maximum percentages of dividends
entagesofK
authorized were 4.37 percent and 22.4 percent, respectively, while
respectively^
ach p
aym
en
ts¡tri
adividendssi1
idendpayientss
19U, wreasi
the smallest and largest amounts involved in such payments were
$24,300 and $454,900, respectively.
All eleven dividends author
ized represented final dividend payments.
Dividend payments so
authorized during the month ended October 31, 1941, were as follows
OCTOBER
31,
1941
Kumber and
Percentage
of Dividends
Authorized
Distribution
of Funds by
Dividend
■Authorized
Total
Percentage
•Authorized
Dividends
to Bate
Kumber of
Claimant s
Amount
Olaims
Proved
Kame «nd Location of Bank
Kature of
Dividend
Date
Authorized
The Potomac Savings Bk of
Georgetown, D„ 0.
Final
10-l6-4l
5 th
6.27$
* 1 2 6 ,400
81.77/*’
8,314
$ 2 ,'0 15 ,8 0 0
The Fort Fairfield KB
Port Fairfield, Maine
Final
10-8-41
4th
s.53^
8 6 ,50 0
64*53$
1,845
1 *0 1 3 ,7 0 0
The Presque Isle KB
Presque Isle, Maine
Final
10-28-41
6 th
1.23%
l68,800
33.23%
4,602
2 ,3 1 4 ,9 0 0
The Carlstadt KB
Carlstadt, New Jersey
Final
10-6-41
5 th
7 .2 7^
5 6 ,6 0 0
9 2 .2 7 %
3,2i+0
778,400
The First KB of
Toledo* Ohio
Final
10-25-41
6 th
5-25#
16 1*10 0
94.2 3 %
2 ,5 0 5
3 ,0 6 7 ,7 0 0
The First KB of
Boswell, Penna.
Final
10 -3 1 - 4 1
5th
4 .45$
24,300
55.117^
1 ,31+2
547,000
'The First KB & Tr. Co of
Frackville, Penna*
Final
10-13-41
4th
5 5 ,8 0 0
84*37/®
4 ,2 6 0
1 *277*20 0
The Kescopeck KB
Kescopeck, Penna.
Final
10-3-41
4th 22.4$
84,6 0 0
92.4$
1 ,2 7 2
377*700
The Exchange KB of
Pittsburgh, Penna*
Final
10-17-41
7th 1 3 .08/6
454,900
98.08$
5,33“+
3 ,4 7 7 ,6 0 0
The Texas KB of
Fort Worth, Texas
Final
io-io-4i
5th
4.5$
1 9 3 ,1 0 0
53.5%
7,336
4,291,000
The First KB of
Clintonville. Wisconsin
Final
10-441
7th
5*1$
6 1 ,5 0 0
88.6$
2 .6 2 9
1 ,2 0 5 ,10 0
T R E A S U R Y DEPARTMENT
Washington
FOR. IMMEDIATE R E L E A S E
No v e m b e r IS, 1941
Press Service
No. 36-41
The Secretary of the T r e a s u r y today a n n o u n c e d amendments
to General License No. 58 r e l a t i n g to trade b e t w e e n the United
States, and China u n d e r the f r e ezing control an d the issuance
of a new g e n e r a l license covering remittances to China.
U n d e r t o d a y ’s amendment to G-pneral License Noi 58 trade
be t w e e n the United States and C h ina w i l l b e c l e a r e d t h r o u g h the
S t a b i l i z a t i o n B o a r d of China or its a u t h o r i z e d agents.
U.3.
Customs a u t h o r i t i e s have bee n i n s t r u c t e d b e fore clearing shi p
ments to require proof that this c o n d i t i o n has been .satisfied,
The dollars accruing from exports from China to the U n i t e d States
will be made available to China, a n d the N a t i o n a l G-overnment of
China will be aided in c o n t r o l l i n g imports.
The foreign exchange p o s i t i o n of China will also be
stren g t h e n e d by the n ew G e n eral License No. 75 covering remit
tances to China,
P u r s u a n t to this license remittances in a n y
amount are permitted to any part of China, except Manchuria,
as long as the United States d o l lars a r i s i n g from such remittances
are made available to the S t a b i l i z a t i o n B o a r d of China u p o n its
demand.
Dollars in Chinese b l o c k e d accounts as w e l l as unb l o c k e d
dollars m a y be e m p l o y e d in m a k i n g s u c h remittances.
U n d e r G-'eneral License No. 75 any domestic b ank in the
United States can a c c e p t orders for remittances to China. - Such
remittances are then e f f e c t e d by a domestic b a n k p a ying the
dollar a m ount of the remittance to a des i g n a t e d agent of the
Central B a n k of China for the a c c o u n t of an "appointed bank. ,f
These dollars w i l l in turn b e made available to the S t a b i l i z a t i o n
Board of China upon d e m a n d against delivery of an e q u i v a l e n t
amount of Chinese n a t i o n a l currency.
The Chinese G-overnment
has a n n o u n c e d that the Bank of China and the P h i l ippine Ban k
of Commun i c a t i o n s have been named as d e s i g n a t e d agents of the
Central B a n k of China.
B o t h the U n i t e d States a nd Great B r i t a i n have p r e v i o u s l y 1
entered into s t a b i l i z a t i o n a g r e e m e n t s w i t h C h i n a w h e r e b y dollar
and sterling exchange have b een made a v a i lable to the S t a b i l i z a
tion B o a r d of China.
Such Board was e s t a blished re c e n t l y by
China a nd consists of t h r e e ’C h i n e s e , an A m e r i c a n appointed, by
China on the r e c o m m e n d a t i o n of the Secretary of the Treasury,
and a B r i t i s h national app o i n t e d on the r e c o m m e n d a t i o n of the
B r i t i s h Treasury,
The term "appointed hank" is d e fined -in General License
No, 58 as "any of those hanks coop e r a t i n g w i t h t h e .Stabil i z a t i o n
B o ard of China a n d b u y i n g and s e l l i n g foreign e x c h a n g e w i t h the
p e r m i s s i o n of, and subject to the conditions p r e s c r i b e d by,
such Board, the names of w h i c h a p p e a r on Schedule A of this
general license at the time the transaction is effected,"
The
offices w i t h i n Hong K o n g and any part of China.- except M a n c h u r i a
of the f o l l o w i n g banks have b e e n n a med "appointed banks";
(a)
The Chase B p nk
(b)
National City Bank of N e w York
(c)
U n d e r w r i t e r s Bank for the Far East
(d)
Am e r i c a n Express C o m p a n y
(e)
M o s c o w N a r o d n y Bank, Ltd.
(f)
Thos. Cook & Son (Bankers) Ltd,
(g)
Ho n g k o n g & Shanghai B a n k i n g C o r p o r a t i o n
(h)
Mercantile Bank of India, Ltd.
(i)
David S a s soon & Co., Ltd.
fjj
E. D. S a s soon & C o . , Ltd.
(k)
K. D. Sassoon B a n k i n g Co. , Ltd.
(l)
C h a rtered B ank of India, A u s t r a l i a & China,
Cm)
N e d e r l a n d s c h Indische H a n d e l s b a n k
(n)
N e d e r l andsche Handel Maatschappij
(o)
Shanghai Comm e r c i a l and Savings Bank, Ltd.
(p)
Bank of East Asia, Ltd.
(q)
National C o m m ercial Bank, Ltd.
(r)
C h e kiang Industrial Bank, Ltd.
(s)
Ban k of Canton, Ltd,
(t)
Ove r s e a - C h i n e s e Ba n k i n g Corporation, Ltd,
(u)
Kin c h e n g B a n k i n g C o r p o r a t i o n
(v)
China B a n k i n g C o r p o r a t i o n
(w)
Bank of China
(x)
Bank of Commun i c a t i o n s
(y) • Farmers B a nk of China
(z)
Central B a n k of China
Ltd,
TREASURY DEPARTMENT
Office of the Sec r e t a r y
N o v e m b e r 12, 1941
PUBL I C C I R C U L A R NO. 7
U N D E R E X E C U T I V E O R D E R NO. 8389, A P R I L
10, 1940, AS AMENDED, AND R E G U L A T I O N S
ISSUED PU R S U A N T THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN F O R E I G N EXCHANGE, E T C.»
G e n eral Licenses Nos.
d e e m e d to authorize
part of China,
are
remittances
except Manchuria,
32 and 33 shall not be
to any i n d i vidual in any
unless s uch remittances
effected in the m a n n e r p r e s c r i b e d in p a r a g r a p h
of G e neral License No.
75,
namely,
(c)
by a d o m e s t i c ban k p a y
ing the d o llar a m o u n t of the remittance
agent of the C e n tral Ban k of C h ina
(1)
to a desi g n a t e d
for the account of an
a p p o i n t e d bank.
E.
H.
FOLEY,
JR.
A c t i n g S e c r e t a r y of the Treasury.
* Part 131; - See. 5(b), 40 Stat. 415 an d 966; Sec. 2, 48 Stat. 1;
54 Stat. 179; Ex. O r d e r 8389, A p r i l 10, 1940, as a m e nded b y Ex.
O r der 8785, June 14, 1941, and Ex. O r d e r 8832, J u l y 26, 1941;
Regulations, A p ril 10, 1940, as a m e n d e d June 14, 1941, and
J u l y 26, 1941.
TREASURY- DEPARTMENT'"Office of the Secretary
N o v e m b e r 12, 1941
G E N E R A L LI C E N S E NO. 58, AS AMENDED,
U N D E R E X E C U T I V E O R D E R NO. 8389, A P R I L
10, 1940, AS AMENDED, a ND R E G U L A T I O N S
ISSUED PURSUANT THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN F O R E I G N EXCHANGE, ETC.»
General License No.
(l)
transactions
ing of goods,
58 is amended
to read as
A g e n e r a l license
follox^s;
is h e r e b y g r a n t e d lic e n s i n g all
ord i n a r i l y incident' to the
importing and export
w a res and m e r c h a n d i s e b e t w e e n the United
States and any part
of China
other than Manchuria,
pro v i d e d
the f o l l o w i n g terms and c o n d i t i o n s are complied with;
(a)
S u c h t r a n s a c t i o n shall not involve p r o p e r t y
in w h i c h a ny one of the fol l o w i n g has at any time on
or since the effective date of the O r der had any in
terest and shall not be by, or on b e h a l f of, or p u r
suant to the d i r e c t i o n of any one of the following;
(l)
(il)
(iii)
any b l o c k e d country o t her than
China, or
any p e r s o n within Manchuria,
or
any n a t i o n a l of any b l o c k e d country
other than China u n l e s s such national
is w i thin China;
(b)
Exports from the United States to China
h a v i n g a v a l u e in excess of $100 shall be effected
only p r o v i d e d b o t h of the f o l lowing conditions are
satisfied;
(i)
payment th e r e f o r has b e e n or will be
made t h r o u g h a d o m e s t i c bank and such
~ ^e c » &(b), 40 Stat. 415 and 966; Sec, 2, 48 S t a t , 1;
54 Stat. 179; Ex, O r d e r 8389, A p r i l 10, 1940, as amended- by Ex.
Order 8785, June 14, 1941, and Ex, Order 8832, J u l y 26-, 1941;
R e g u l a t i o n s , A p r i l 10, 1940, as a m e n d e d June 14, 1941, and
J u l y 26, 1941.
domestic b a n k has b e e n notified by
an a p p o i n t e d bank that the i m p orter
w i t h i n C h ina has p aid or has com p l e t e d
a r r a n g e m e n t s to p a y t h e refor w i t h
U n ited States d o l l a r s acquired from
such a p p o i n t e d bank, or in lieu of the
foregoing, a domestic b a n k has b e e n
n o t i f i e d by an a p p o i n t e d bank that the
shipment has been otherwise ap p r o v e d
by the S t a b i l i z a t i o n B o ard of China;
and
(ii)
on e ach shipment the domestic b a n k
referred to in (i) shall execute
Form T F R - 1 5 8 in quadruplicate.
The
original of such e x e c u t e d form shall
be t r a n s m i t t e d by the d o m estic b a n k
d i r e c t l y to the c o l l e c t o r of customs
at the por t of e x p o r t a t i o n and shall
be r e c e i v e d by suc h c o l l e c t o r of c us
toms p r i o r to the e x p o r t a t i o n of the
shipment.
The d u p l i c a t e of such exe
cuted f o r m shall be d e l i v e r e d by the
d o m estic b a n k to the e x p o r t e r or his
agent w ho shall p r e s e n t and, if re
quested, d e l i v e r such copy to the
c o l l e c t o r of customs at the port of
e x p o r t a t i o n at the time the S h i p p e r 1s
Export D e c l a r a t i o n is filed.
The re
m a i n i n g two copies of such executed
form shall be filed p r o m p t l y by- the
do m e s t i c b a n k w i t h the a ppropriate
Federa.l R e s e r v e Bank.
(c)
Imports into the United States from C h ina h av
ing a value in excess of $100 shall be effected only
p r o v i d e d b o t h of the f o l l o w i n g c onditions are satisfied;
(i)
(ii)
payment t h e r e f o r in U n i t e d States
dollars has been or w ill be made through
a d o m e s t i c ban k and the exp o r t e r w i t h i n
China has sold or has c o m p leted a r r a n g e
ments for s e lling suc h U n i t e d States
dollars to an a p p o i n t e d bank, or in lieu
of the foregoing, the shipment has been
otherwise ap p r o v e d by the S t a b i l i z a t i o n
Board of China; and
p r i o r to the release of any such shipment
from customs custody the col l e c t o r of
3
customs of thè por t of entry t h r o u g h
w h i c h the shipment is imported shall
have r e c e i v e d a c o n s u l a r invoice c ov
ering such shipment and such c o n s u l a r
Invoice shall h e a r the c e r t i f i c a t i o n
of a U n i t e d States consul in C h ina that
an a p p o i n t e d hank has duly n o t i f i e d the
c o n s u l that the e x p o r t e r w i t h i n China
has sold or has c o m p l e t e d a r r a n g e m e n t s
for s e l l i n g the U n i t e d States d o l l a r
proce e d s from such shipment to such
a p p o i n t e d hank or that the shipment has
heen o t h e rwise a p p r o v e d h y the S t a b i l i
zation B o a r d of China,
(d)
The conditions p r e s c r i b e d in (h) and
not a p ply w i t h respect to any Import or export:
(i)
(ii)
(iii)
(c)
if the shipment was in transit b e t w e e n
the U n i t e d States a n d C h ina on
N o v e m b e r 12, 1941; or
if the consignee or c o n s i g n o r of the
shipment is the U n i t e d States Government
or the C h i nese Na t i o n a l Gov e r n m e n t or a
r e c o g n i z e d a g ency or p o l i t i c a l i n s t r u
m e n t a l i t y of e i t h e r government; or
if p a y m e n t for the shipment was fully
e f f ected p r i o r to N o v e m b e r 12, 1941, and
the f o l l o w i n g r e p o r t i n g p r o c e d u r e is
followed:
On each s u c h shipment a d o m e s
tic b a n k p a r t i c i p a t i n g in f i n a n c i n g the
shipment shall execute Form T F R - 1 5 8 A in
quadruplicate.
The o r i ginal of s u c h exe
cuted form shall be t r a n s m i t t e d by such
domes t i c b a n k d i r e c t l y to the c o l l e c t o r
of customs at the por t of i m p o r t a t i o n or
e x p o r t a t i o n as the case m a y be and shall
be re c e i v e d by s u c h c o l l e c t o r of customs
p r i o r to the release of such shipment
from customs custody or p r i o r to the
e x p o r t a t i o n of such shipment as the case
m a y be.
The d u p l i c a t e of such e x e cuted
form shall be d e l i v e r e d by the d o m e s t i c
b a n k to the im p o r t e r or e x p o r t e r or their
respective agents w ho shall pr e s e n t and,
if requested, d e l i v e r s uch copy to the
c o l l e c t o r of customs at the time the
shall
4
shipment is released from customs custody
or the S h i p p e r ’s Export Decl a r a t i o n is
filed, as the case may be.
The r e m a ining
two copies of such executed form shall be
filed p r o m p t l y by the domestic b a n k w i t h
the a p p r o p r i a t e Federal Reserve Bank,
(e)
Any domes t i c b a n k p r i o r to Issuing, con f i r m i n g
or advising letters of credit, or a c c e p t i n g or p a y i n g
drafts drawn, or r e i m b u r s i n g themselves for payments
made, u n d e r letters of credit, or m a k i n g any other p a y
ment or t r a nsfer of credit, in c o n n ection w i t h any im
p o r t a t i o n or exportation pursuant to this general
license, or eng a g i n g in any other tran s a c t i o n h e r e i n
authorized, shall satisfy' itself (from the shipping
documents or otherwise) that:
(2)
(l)
any such t r a n s a c t i o n is Incident to a
b o n a fide i m p o r t a t i o n or exportation and
is customary in the normal course of
business, a nd that the value of such im
p o r t a t i o n or e x p o r t a t i o n r easonably
corresponds w i t h the sums of money i n
v o lve d in fi n a n c i n g suc h transaction;
and
(ii)
such i m p o r t a t i o n or e x p o r t a t i o n is or
will be made p u r suant to all the terms
a nd conditions of this license.
As use d in this general license:
(a)
The term "appointed bank" shall mean any of
those banks coop e r a t i n g w i t h the S t a b i l i z a t i o n B o a r d of
China and b u y i n g and selling foreign exchange w i t h the
p e r m i s s i o n of, and subject to the conditions p r e s c r i b e d
by, such Board, the names of w h i c h a p p e a r on Schedule A
of this general license at the time the tran s a c t i o n is
effected.
(b)
a p e r s o n shall not be deemed to be "within
China" unless such person was situated with i n and d o i n g
business w i t h i n China on and. since June 14, 1941.
E. H.
FOLEY,
JR.
A c t i n g Sec r e t a r y of the Treasury.
N o v e m b e r 12,
SCHEDULE A O F G E N E R A L L I C ENSE NO.
The
offices w i t h i n Hong K o n g and a n y par t
except Manchuria, of the
1941
58
of China,
fol l o w i n g are hereby l i c ensed as
"appointed banks" w i t h i n the m e a n i n g of General License No.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
l )
(m)
(
(n)
( o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
(y)
The Chase B a n k
National C i t y Bank of N e w York
U nderwriters Bank for the Far East
A m e r i c a n E x p ress C o m p a n y
M o s c o w N a r o d n y Bank, Ltd.
Thos. Cook & Son (Bankers) Ltd.
Hongk o n g & Shanghai B a n k i n g C o r p o r a t i o n
M e r c antile B a n k of India, Ltd.
D a vid S a s s o o n Sc Co. , Ltd*
E. D. S a s s o o n & C o . , Ltd,
E, D. S a s soon B a n k i n g Co., Ltd.
C h a rtered B a n k of India, A u s t r a l i a & China,
N e d e r l a n d s c h Inaische H a n d e l s b a n k
Ne d e r l a n d s c h e Handel M a a t s chappij
Shanghai C o m m ercial a n d Savings Bank, Ltd.
Bank of East Asia, Ltd.
National C o m m ercial Bank, Ltd.
Ch e k i a n g I ndustrial Bank, Ltd..
Bank of Canton, Ltd.
Ove r s e a - C h i n e s e B a n k i n g Corporation, Ltd.
Kincheng Banking Corporation
China B a n k i n g C o r p o r a t i o n
Bank of C h i n a
B ank of Co m m u n i c a t i o n s
Farmers Ban k of China
C m t r a l B a n k of China
Ltd.
E. H. FOLEY, JR.
A c t i n g S e c r etary of the T r e a s u r y
TR E A S U R Y D E P A RTMENT
Office of the Secretary
N o v e m b e r 12, 1941
G E N E R A L LICENSE NO. 61, AS AMENDED,
U N D E R E X E C U T I V E O R D E R NO. 8389, A P R I L
10, 1940, AS AMENDED, A ND R E G U L A T I O N S
ISSUED P U R SUANT THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN F O R E I G N EXCHANGE, E T C . *
General License No.
61 is amended
to read as
follows:
(1)
A g e n e r a l license Is here b y granted lic e n s i n g
the offices outside the U n i t e d States a nd not w i t h i n
any blocked c o u n t r y o t her than China of the following
Chinese banks as generally licensed nationals:
(a)
(b)
(c)
the Bank of China;
the B a n k of C o m munications;
the Farmers B a n k of China.
and
A n y t r a n s action engaged in by any such office of any
suc h b a n k p u r suant to the o r d e r of or for the account of
any p e r s o n not w i t h i n a n y b l o c k e d co u n t r y is also h e reby
a u t h o r i z e d to the same extent, and u n d e r the same
circumstances, as t h o u g h suc h t r a n s a c t i o n were solely
for the account of such office of such bank; p r o v i d e d ,
h o w e v e r , that this a u t h o r i z a t i o n shall not be deemed to
permit any payment, t r a n s f e r or w i t h d r a w a l from any
b l o c k e d account.
(2)
Any office w i t h i n H o n g Kont? or any part of
China, except Manchuria, of any such b a n k is also
a u t h o r i z e d to engage in all t ransactions o r d i narily
incident to the importing a n d e x p o r t i n g of goods,
wares an d m e r c handise b e t w e e n the U n i t e d States a n d
any part of China, except Manchuria, p r o v i d e d all the
terms and conditions of G e n e r a l License No. 58 are
complied with.
(3)
B a n k i n g institutions, w i t h i n the United States
m a k i n g any payment, tr a n s f e r or w i t h d r a w a l from the
accounts of any such office of the a f o r e m e n t i o n e d banks
shall file p r o m p t l y w i t h the appr o p r i a t e Federal Reserve
B a n k m o n thly reports s e t t i n g forth the details of such
transactions d u r i n g such period.
E.
H.
FOLEY,
JR.
A c t i n g S e c r e t a r y of the Treasury.
* Part 131; - Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat.
I,* .54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended
by E x . O r d e r 8785, June 14, 1941, and Ex. O r d e r 8832, J u l y 26,
1941; Regulations, A p ril 10, 1940, as a m e n d e d June 14, 1941,
and J u l y 26, 1941.
TREASURY DEPARTMENT '
Office of the Secretary
Novem b e r 12, 1941
G E N E R A L LICENSE NO. 59, AS AMENDED,
U N D E R E X E C U T I V E O R D E R NO. 8389, APRIL
10, 1940, AS A M E N D E D , AND R E G U LATIONS
ISSUED PURSUANT THERETO, R E L A T I N G TO
TRAN S A C T I O N S IN FOREIGN EXCHANGE, E T C .*
General License No.
59 is a m ended to read as
follows:
(1)
A general license is hereby granted l i c e n s i n g
as g e n e rally licensed nationals the offices w i t h i n Hong
K o n g and any p a r t of China except M a n c h u r i a of the
following:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
The Chase Bank
National City Bank of Ne w York
Underwriters Bank for the Far East
A m e r i c a n Express Company
M o s c o w N a r o d n y Bank, Ltd.
Thos. Cook & Son (Bankers) Ltd.
H o n gkong & Shanghai B a n k i n g Corp o r a t i o n
Mercantile Ban k of India, Ltd.
David Sassoon & Co,, Ltd.
E. D, Sassoon & C o . , Ltd.
E. D. S a s soon B a nking Co., Ltd.
Chartered Bank of India, Australia
& China, Ltd.
N o d e r l a n d s c h Indische H a n d e l s b a n k
Nederl a n d s c h e Handel Maatschappij
Shanghai C o m m ercial a nd Savings Bank, Ltd.
Bank of East Asia, Ltd.
National Commercial Bank, Ltd.
Chekiang Industrial Bank, Ltd.
Bank of Canton, Ltd.
O v e r s e a-Chinese B a n k i n g Corporation, Ltd.
Ki n c h e n g B a n k i n g C o r p o r a t i o n
China B a n k i n g Corp o r a t i o n
(2)
Any such office of any suc h b a n k is also
auth o r i z e d to engage in all transactions ordinarily
incident to the- importing and exporting of goods, wares,
and merchandise between the United States and any part
of China, except Manchuria, p r o v i d e d all the terms and
conditions of General License No. 58 are complied with.
* Part 131; - See, 5(b ), 40 Stat. 415 and 966; Sec. 2, 48 3t a t .
1; 54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended
by Ex. Order 8785, June 14, 1941, and Ex. O r d e r 8832,
Jul y 26, 1941; Regulations, A p r i l 10, 1940, as a m e nded
June 14, 1941, and July 26, 1941.
2
(3)
B a n k i n g institutions with i n the United States
m a k i n g any payment, tr a n s f e r or w i t h d r a w a l from the
accounts of any such office of the a f o r e m e n t i o n e d ^ b a n k i n g
institutions shall file p r o m p t l y w i t h the a ppropriate
Federal Reserve Bank m o n t h l y reports se t t i n g forth tne
details of suc h transactions during such period.
E.
H,
FOLEY,
JR.
A c t i n g Sec r e t a r y of the*Treasury.
TREASURY DEPARTMENT
Office of the Secretary
November 12, 1941.
REVOCATION OP GENERAL LICENSE NO. 64
UNDER EXECUTIVE ORDER NO* 8389, APRIL 10,
1940, AS MENDED, AND REGULATIONS ISSUED
PURSTMT THERETO, RELATING TO TRANSACTIONS
IN FOREIGN EXCHANGE, ETC.* ______________
General License No* 64 is hereby revoked*
B* H. FOLEY, JR.
Acting Secretary of the Treasury
* Part 131; - Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 11
54 Stat. 179; Ex. Order 8389, April 10, 1940, as amended by Ex:* Orde
8785, June 14, 1941, and Ex* Order 8832, July 26, 1941; Regula.tions,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.
TREASURY DEPARTMENT
Office of the Sec r e t a r y
N o v e m b e r 12, 1941
G E N E R A L L I C E N S E NO. 75
U N D E R E X E C U T I V E O R D E R NO. 8389, A P R I L
10, 1940, AS AMENDED, A N D R E G U L A T I O N S
ISSUED P U R S U A N T THERETO, R E L A T I N G TO
T P A N S A C T I ONS IN F O R E I G N E X C H A N G E , E T C .*
(1)
tances
A ge n e r a l license is h e r e b y g r a n t e d a u t h o r i z i n g remit
in a ny amount b y any p e r s o n t h r o u g h any d o m estic b a n k to
any p e r s o n in any part
of China except Manchuria,
tic b a n k is a u t h o r i z e d to effect such remittances,
and a ny d o m e s
p r o v i d e d the
following terms and conditions ar e compl i e d with:
(a)
S u c h remi t t a n c e s may be made f r o m any account
o t h e r t han a. b l o c k e d a c c ount a.nd, subject to item (b)
hereof, such remi t t a n c e s m ay be made from the b l o c k e d
ac c o u n t of any na t i o n a l of China.
^b)
Such r e m i t t a n c e s m a y not be m a d e from any
b l o c k e d account if any of the f o l l o w i n g has an interest
in such account;
(if
(if)
(iii)
A n y n a t ional of apy b l o c k e d country
o t h e r than China;
A n y p e r s o n w i t h i n Manchuria;
or
A n y b l o c k e d c o u n t r y other t han China;
and
(c)
Suc h remi t t a n c e s shall be e f f e c t e d by a d o m e s
tic b a n k p a y i n g the d o l l a r amou n t of the remittance to a
designated, agent of the C e n t r a l Bank of C h ina for the
ac c o u n t of an a p p o i n t e d bank.
* Part 131; - Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1;
54 Stat. 179; Ex. O r d e r 8389, A p r i l 10, 1940, as a m e n d e d by Ex.
O r der 8785, June 14, 1941, and Ex. O r d e r 8832, J u l y 26, 1941;
Regulations, A p r i l 10, 1940, as a m e n d e d J u n e 14, 1941, and
J u l y 26, 1941.
2
(2)
A l l domestic banks
satisfy themselves
that
the
e f f e c t i n g such remittances
shall
foregoing terms and conditions
are
complied with,
(3)
W i t h respect
to each r e m i t t a n c e made pursuant
to this
general license reports
on F orm T F R — 132 shall be
filed in the m a n n e r and
form and u n d e r the conditions p r e s c r i b e d
in General License No.
remittances
the nature
originate
32.
D o m e s t i c banks
executed and
t h r o u g h w h i c h any such
shall note on the reverse
side of such form
of the t r a n s a c t i o n for w h i c h the remittance
is b e i n g
made but n eed not f u r n i s h the i n f o r m a t i o n called for in item 6
of such form.
(4)
A l l dollars a c c r u i n g to any a p p ointed b a n k p u r s u a n t
this general license
B o a r d of China,
shall,
be made
to
if so r e q uired by the S t a b i l i z a t i o n
a v a i lable,to
the B o a r d b y payment
to the
Central B a n k of China against d e l i v e r y of an equivalent amount
Chinese
of
n a t ional currency.
(5 )
This general
license
any t r a n s a c t i o n incidental
shall not be d e e m e d to authorize
to imports and exports b e t w e e n the
U n i t e d States and China,
(6)
As u s e d in this general license?,
(a)
The term napp o i n t e d b a n k 11 shall have the same
m e a n i n g as that p r e s c r i b e d in General L i cense No, 58,
(b)
The term d e s i g n a t e d agent of the Central B ank
of C h i n a ” shall m e a n either the Bank of C h i n a or the
P h i l i p p i n e Bank of Communications.
E . H, FOLEY, JR,
A c t i n g Sec r e t a r y of the Treasury.
PROPOSED GENERAL LICENSE NO. PI-1, AS AMENDED.
/To be issued by High Commissioner to the Philippine Islands,/
General License No. PI-1 is amended to read as follows:
(1)
A general license is hereby granted authorizing remittances
in any amount by any person in the Philippine Islands through any domestic
bank, broker or sub-broker to any person in any part of China except
Manchuria, and any domestic bank, broker or sub-broker is authorized to
effect such remittances, provided the following terms and conditions are
complied with:
(a) Such remittances may be made from any account other than
a blocked account and, subject
to item (b) hereof, such remittances
may be made from the blocked account of any national of China.
if
(b) Such remittances may not be made from any blocked account
any of the following has an
interest in suchaccount:
(i)
Any national of any blocked country other than
China ;
(ii)
Any person within Manchuria; or
(iii)
Any blocked country other than China; and
.
(c) Such remittances shall be effected by a domestic bank or
broker paying the dollar or peso amount of the remittance to a
designated agent of the Central Bank of China for the account of an
appointed bank.
(2)
All domestic banks, brokers and sub-brokers effecting such re
mittances shall satisfy themselves that the foregoing terms and conditions are
complied with.
(3)
With respect to each remittance made pursuant to this general
license reports on Form TFR-132 shall be executed and filed in the manner and
2
form and under the conditions prescribed in General Licence Ho. 32, except
that sub-brokers through which such remittances originate need not execute
Section A of such report.
If sub-brokers do not execute Section 1 of such
report, they shell furnish sufficient information to principal brokers to
enable the latter to execute Section A .
The broker or bank which executes
Section A of such report shall note on the reverse side of such forrr the
nature of the transaction for which the remittance is being made but need
not furnish the information called for in item 6 of such form.
(A)
All dollars or oesos accruing to any appointed bank pursuant to
this general license shall, if so reouired by the Stabilization Foarc. of
China, be made available to the Stabilization Board of China by payment to
the Central Bank of China against delivery of an
equivalent amount of
Chinese national currency.
(5)
This general license shall not be deemed to autnorize o.ny trans
action incidental to imports and exports between any part of the United
States (including the Philippine Islands) and China..
(6)
Li- used
in this general license:
(a) The term ’'appointed bank” shall have the same rearing
as that prescribed in General License No. 58.
(b) The term "designated agent of the Central Bank of China”
shall mean either the Bank of China or the Philippine Bank of Com
munications .
United States High Commissioner
to the Philippine Islands.
(2 )
COTTON CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE,
WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas
commencing September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33-1/3 percent of the
quotas shall be filled by cotton wastes other than card strips and comber
wastes made from cottons of 1- 3/16 inches or more in staple length in the
case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany and Italy:
Country of
Origin
United Kingdom ....
Canada ...........
France ...........
British India ....
Netherlands ......
Switzerland .......
Belgium ..........
Japan ............
China ............
Egypt ............
Cuba .............
Germany ..........
Italy ........... -
Total
1/
(In Pounds)
TOTAL IMPORTS
: Established
Sept. 20,1941,
: TOTAL QUOTA
to Nov. 1.1941
♦
, -4,323,457
239,690
227,420
69,627
1,441,152
231,607
75,307
12,207
22,747
14,796
12,353
68,240
44,338
33,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509
Included in total imports, column 2.
Established
33-1/3% of
Total Quota
25,443
7,088
243,814
1,599,386
Imports Sept
20,1941, to
Nov.1,1941 H
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday, November 13> 1941.
Press Service
No. 28-42
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5, 1939,
and December 19, 1940, as follows, during the period September 20, 1941, to
liovember 1, 1941, inclusive:
COTTON HAVING A STAPLE OF LESS THAN l-ll/l6 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC
TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas
commencing* September 20, by Countries of Origin:
Country of
Origin
(In Pounds)
:
Staple length less
:
than l-l/8n
:
: Imports Sept.
: Established : 20, 1941, to
:
Quota
: Nov. 1, 1941
Egypt and the AngloEgyptian Sudan .....
Peru .................
British India ........
C h i n a .... .....
Mexico ...............
Brazil ...............
Union of Soviet
Socialist Republics .
Argentina............
H a i t i .........
Ecuador ..............
Honduras ...........
Paraguay.............
Colombia.............
I r a q .................
British East Africa ..*
Netherlands East
Indies ....
Barbados .............
Other British West
Indies 1/ ........
Nigeria ..............
Other British Westr
Africa 2 / ..... .
Algeria and Tunisia ...
Other French Africa 3/.
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
:Staple length l-l/8M or more
:
but less than 1-11/16"
:
: Imports Sept,
; Established : 20, 1941, to
:
Quota
: Nbv. 1, 1941
—
247,952
»
43,451,566
2,056,299
64,942
2,626
8,883,259
618,723
3,808
—
475,124
5,203
237
9,333
752
871
124
495
2,240
1
9,264
435
506
-
•
-
m
m
«■*
29,909
59
-
12,554
*
30
30,139
-
*
**
mm
71,388
21,321
5,377
2,002
1,634
16,004
689
45.656.420
14.516.882
9,759,229
Total
L/ Other than Barbados,Bermuda, Jamaica, Trinidad, and Tobago.
l / Other than Gold Coast and Nigeria.
_________X Vw/U
4,522,891
2,056,299
«
2
t y 7 -w .3
~ -
ov-ir}
9.
Ma H a e r a
t
« <■*a TV
...................~ —
--------—
6,579,222.
_jC£.
FOR IMMEDIATS RELEASE
November 12, 1941___
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5, 1939,
and December 19, 1940, as follows, during the period September 20, 1941, to
November 1, 1941, inclusive:
dur
ili
COTTON HAVING A STAPLE OF LESS THAN 1-11/16 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC
TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTSRS). Annual quotas
commencing* September 20, by Countries of Origin:
(In Pounds)
Staple length less
than 1- 1/ 8”
: Imports Sept.
:
: Established : 20, 1941, to
: Nov. 1, 1941
Quota
Country of
Origin
Egypt and the AngloEgyptian Sudan .....
pp.rii -rr..............
British India ........
P.Vn ns .................
Ifevi c.0 .......... . ..« *
R t*¿3*7.1 1 ...........
Union of Soviet
Socialist Republics .
Argentina ............
Haiti .............. .
Rf’iifldnr .......... .
WnnrhiT'n.c? ....... .
PnrfloiiflTr.......... .
flnl rimT'via .......... .
T ran ........... .....
British East Africa .. *
Netherlands East
Indies .............
Barbados .............
Other British West
Indies l/ ........ ..
Nigeria ..............
Other British West '
Africa 2/ ..........
Algeria and Tunisia ...
Other French Africa 3/ •
783,316
247,952
2,003,433
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
752
871
124
195
2,240
:Staple length 1-1/8” or more
:
but less than I-II/I6"
: Imports Sept,
; Established : 20, 1941, to
: Nbv. 1, 1941
:
Quota
247,952
-
4,522,891
2,056,299
8,883,259
618,723
3,808
2
1
435
•
9,264
•
-
-
29,909
.....
m:
m
m
m
39
71,368
lljfijj
12,354
2 1 ,3 2 1
3,377
jÉs,ti
30,139
y.
30
s l(l(
Aitisi
2,002
1,634
16,004
S mii
belici
669
45.656,420
9^759,229
14,516,882
Total
and
Tobago.
l/ Other than Barbados,Bermuda, Jamaica, Trinidad,
2/ Other than Gold Coast and Nigeria.
— »>t ;
«1. and Madagascar.
x w
limiti
43,451,566
2,056,299
64,942
2,626
506
......... — T 7
a - - .................. ..
Wj:
—
6^579^28,
TREASURY DEPARTMENT
W ashin gton
FOR IMMEDIATE RELEASE,
T h u rsd a y , November
P r e fTs So£VhSe
No*
19^-1.
The B u r e a u of Customs a n n o u n c e d t o day that p r e l i m i n a r y reports
from the collectors of customs show imports of cotton and cotton
w a ste chargeable to the import Quotas e s t a b l i s h e d b y the P r e s i d e n t s
p r o c l a m a t i o n s of S e p t e m b e r 5, 1939, and De c e m b e r 1 9 , 1 9 ^ 0 , as f o l
lows, during the p e r i o d S e p tember 2 0 , 1941, to No v e m b e r 1, 1941,
inclusive:
COTTON HAVING- A STAPLE OF LESS THAN 1 - 1 1 / 1 6 INCHES (OTHER THAN HARSH
OR ROUGH COTTON OF LESS THAN 3/ ^ INCH IN STAPLE LENGTH AND CHIEFLY
USED IN THE MANUFACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN
LIN T ER 5).
Annual q u o ta s commencing Sep tem ber 2 0 , by C o u n tr ie s o f
O r ig in :
\In
Egypt and the AngloEgyptian Sudan ...
Peru ..............
British India ......
China ............
Mexico ............
Brazil ........ .
Union of Soviet
Socialist Republics .
Argentina .........
Haiti ....... .....
Ecuador ...........
Honduras ..........
Paraguay .........
Colombia ..........
Iraq ..............
British East Africa •#«
Netherlands East
Ind ie s ..........
Barbados .... .
Other British West
Indies 1/..... .
Nigeria .T........
Other British West
Africa 2/ ......
Algeria and Tunisia • ••
Other French Africa 3/.
KJXX&.XJ.
j
: Staple length l-l/8” or more
:
but less than 1-11/16n
:
s Imports Sept.
: Established : 20, 1941, to
:
Quota
: Nov. 1, 1941
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
».
247,952
8, 883,259
618,723
475,124
5,203
237
9,333
752
871
124
195
2,240
1
9,264
-
435
506
•*
29,909
30
71,388
-
-
12,554
-
21,321
5,377
30
30,139
—
•
16,004
689
-
2,002
1,634
-
-
9 ,759,229
45,656,420
6,579,222
14,51«,882
Total
V V / U W I
)
Staple length less
than I-I/8 n
; Imports Sept.
Established : 20, 1941, to
î Nov . 1, 1941
Quota
Country of
Origin
X /
r ounds
J
-------- ~
---- 9
------------
2/ Other than Gold Coast and Nigeria,
3/ Other than Algeria, Tunisia, and Madagascar.
43,451,566
2,056,299
64,942
2,626
3,808
4,522,891
2,056,299
2
‘
f
—
—
**
%
(2)
COTTON CARD STRIPS, CCHBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE,
T O S T O ^ O R NOT W A C T U R 3 D OR OTHERWISE ADVANCED IN VALUE. Annual quotas
commencing September 20, by Countries of ‘
Origin:
Total ouota provided, however, that not more than 33-1/3 percent of the
cuotas stall be filled by cotton wastes other than card rtripsani comb r
Pastes made from cottons of 1-3/16 inches or more m staple length in th
case of the following countries: United Kingdom, France, Netherlan ,
Switzerland, Belgium, Germany and Italy:
Country of
Qp ig ir
: Established
: TOTAL QUOTA
T
T-w
^A4- /--? IT
0*>U
H.U
HTlli
T1 •m
. •~•»•m•+
U
XlluC/U.
XVlXT
X*li£
rrcixioc/ • ##• • * • • • •
- iXQ
pic
Tr")
rl o
ft •. •. *. . . i,
pJ t«L40
11 .L
AAtX
xu.
1\|t/^11V/I XCiCAiVA
.
1
^VVXKj ^AJ.W
.AAAA *
.
figMgp.............. ..
ijo x IlUvcxX^y • • • • • • • *
XvlxX #4* * * ®*
Total
l/
.
,
.
.
( In Pounds )
TOTAL IMPORTS :
Sept. 20, 1941, :
to Nov, 1,1941 :
m
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
231,607
12,207
-
5,482,509
243,814
Included in total imports, column 2.
-
0 O0 -
Estaoiisnea
33-1/3% of
Total quota
1,441,152
75,807
---- ----- -------iiapui l a
u•
20, 1941 to
Nov. 1,1941 l/
-
22,747
14,796
12,853
—
—
25, 443
7,088
1,599,886
-
T R E A S U R Y DEP A R T M E N T
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Friday, N o v e m b e r l4, 19^-1«
P r e s s Service
No. 2S — 4-3
11/13/41
The T r e a s u r y today b e g a n d i s t r i b u t i o n of a small fold e r ent i t l e d
»Tax Savings P l a n , ” w h i c h contains a digest
T a x Savings Notes.
of r egulations g o v e r n i n g
The b a c h of the form contains
an appl i c a t i o n b l ank
for the Notes.
George Buffington,
new folders will be
which
sent to banks,
that
T h e y are de s i g n e d to a n swer
arise c o n c e r n i n g U n i t e d States T r e a s u r y T a x
and to supplement
i nformation in the
is n o w b e i n g d i s t r i b u t e d to m i l l i o n s
(A copy of the
said the
investment houses and c o r p o r a t i o n s
employ a l a rge n u m b e r of workers.
questions w h i c h might
N o tes
Special A s s i stant to the Secretary,
"Tax Savings Plan"
-OoO-
'‘K n o w Y o u r Taxes" pa m p h l e t
of workers.
fold e r is enclosed.)
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UNITED STATES
TREASURY
TAX SA V IN G S NOTES
W h3h9
CT.
•
PURPOSE. F o r the national defense, greatly
increased taxes on income are necessary and
have been imposed. A s income is received, the
taxp ayer should set aside the amount necessary
to pay the taxes due the following year. The
United States T reasury Department, through
its T a x Savings Plan, is now providing a con
venient means for taxp ayers to save fo r taxes
by offering special T reasury T ax Notes which
may be purchased by taxpayers from cu rren t
income and later used by them in paying their
Federal income taxes.
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S
SERIES A
SERIES B
TAX NOTES. Two series are available: Series
A, designed to be particularly attractiv e to the
small or moderate taxpayers, and Series B, in
tended for the larg er taxpayers. The notes on
sale during 1941 are dated August 1, 1941, and
will m ature August 1, 1943. The succeeding
notes, sim ilar except fo r their dates, on sale
during 1942, will be dated in Ja n u a ry 1942 and
will m ature in Ja n u a ry 1944.
The notes of both series are
sold a t p ar and accrued interest from their
date to month of purchase. Credit for accrued
interest included in the purchase price, plus
fu rther accrual of interest, is given the ta x
payer when the notes are used to pay taxes.
PRICE OF NOTES.
Series A, $25, $50, $100;
Series B , $100, $500, $1,000, $10,000, $100,000,
$500,000, $1,000,000.
INTEREST. Accrues on Series A a t ra te of 16
cents a month per $100, or a t a ra te of about
1.92 percent a y e a r; on Series B a t 4 cents a
month per $100, or a t a rate of about 0.48 per
cent a year. Interest accrued a fte r purchase is
allowed only on notes used for ta x payments
and will not accrue a fter the m aturity of the
notes.
TAX PAYMENTS. The notes, inscribed in the
name of the taxp ay er and nonnegotiable, may
be used by the owner, his agent, or his estate,
during and a fte r the third month from month
of purchase, in payment of Federal income
taxes (cu rrent and back personal and corpora
tion taxes and excess-profits ta x e s) assessed
against his income. The notes are receivable
a t p ar and accrued interest from their date to
month presented to the Collector of Internal
Revenue.
AM O U NTS ACCEPTABLE. Not more than $1,200
principal amount and accrued interest thereon,
of notes of Series A of any date and m aturity,
will be accepted on account of a taxp ay er’s lia
bility for a taxable period, but this limitation
applies separately (1 ) to husband and wife on
a joint return and (2 ) to a decedent before
death and to his estate fo r the balance of the
same year. No limitation is placed on the
amount of Series B notes acceptable, either
alone, or in addition to Series A notes. T ax
notes will be received in payment of taxes only
in amounts of their denominations plus accrued
interest.
TAXABILITY. Interest has no exemption from
Federal income ta x . Interest accrued after
purchase should be reported as income fo r year
in which notes were used fo r ta x payment.
REDEMPTION. Notes not used fo r tax-paym ent
purposes may be redeemed, in whole or in p a rt
DENOM INATIONS.
(corresponding to an authorized denomina
tion) , a t purchase price only, Series A notes a t
any time without notice; Series B notes after
60 days from date of issue on 30 days’ notice.
PURCHASE OF NOTES. T ax notes may be pur
chased from any Federal Reserve bank or
branch or from the T reasurer of the United
States, Washington, D. C. Banks, trust com
panies, and savings and loan associations gen
erally throughout the United States will secure
the notes for th'eir customers, making no
charge fo r this service.
FURTHER INFORMATION. Consult any local
bank, tru st company, or savings and loan asso
ciation, or w rite to the Federal Reserve bank
of the district, or to the Secretary of the T reas
ury, Washington, D. C. F o r any special infor
mation concerning the acceptance of the ta x
notes in payment of Federal income taxes,
consult the Collector of Internal Revenue.
★
Price of $100 Treasury Tax Notes, iSeries A
and B [par and accrued interest, during suc
cessive months; other denominations in pre
portion]
1941
[F o r notes dated August 1 ,1941 ]
August________
September............October_________
November_____ .
December_______
Series A
$1 0 0 .0 0
... 100 .1 6
100. 32
100. 48
100. 64
Series B
$100. 00
1 0 0.04
100. 08
100.12
100.16
1942
[F o r notes dated in January 1942]
Series A
$100. 00
Ja n u a ry ------------1 0 0.16
Feb ru ary----------- ______
100 .3 2
M arch---------------- ______
100. 48
April___________
1 0 0 .6 4
M ay..------------—I ______
100 .8 0
June____________ ______
100 .9 6
Ju ly ____________ ______
101.12
August-------------101 .2 8
September--------- ______
101. 44
October_________
...... 1 0 1 .6 0
November__—
101. 76
December___ ___
★
Series B
$100. 00
100. 04
100. 08
100.12
100.16
100. 20
100. 24
100. 28
100. 32
100. 36
100. 40
1 0 0 .4 4
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss*
Treasury Department Circular Ho* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue*
Copies of the circular may be obtained from any
Federal Reserve Bank or Branch*
ifcP
-
2
-
Reserve Banks and Branch.es,> following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids*
Those submitting tenders will be advised of the acceptance or rejec
tion thereof*
The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and his action
in any such respect shall be final*
Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank in
cash or other immediately available funds on
November 19« 19.42:------- )
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here
after enacted.
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority*
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest*
Under Sections 42 and 117 (a) (l) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
llite
TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING NEWSPAPERS,
Friday. November 1A. 19LI_____•
The Secretary of the treasury, hy this public notice, invites tenders
fnT fr 200,000,000
, or thereabouts, of
91-day Treasury bills, to be issued
on a discount basis under competitive bidding.
Vip. dfltßd November 19» 19A1
The Dills of this series will
• and will mature
February 18, 1942---------W
when the face amount will be payable without interest. They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Hill
ppjl 0
Tenders will be received at Federal Reserve Banks and Branches up to the I filed
iofc
closing hour, two o'clock p. m., Eastern Standard time, Monday, November 17, l g ^
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
11fa
iiifii
Fraction^
itifjof
lit any
It is urged that tenders be made on the pointed forms and for- j
j3?siehr
is prices
warded in the special envelopes which will be supplied by federal Reserve Banks
tell
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment b&IpE®
ties.
Tenders from others must be accompanied by payment of 10 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied hyi
' an express guaranty of payment by an incorporated bank or trust company.
flaill
Immediately after the closing hour, tenders will be opened at the Fedeil lues
T R E A S U R Y D E P A RTMENT
Washington
F OR RELEASE, M O R N I N G NEWSPAPERS,
Friday, N o v e m b e r l k - 9 19^1._______
The S e c r etary of the Treasury, by this p u blic notice, in
vites tenders for $200,000,000, or thereabouts, of 9 1 ~ <3-ay T r e a s u r y
bills, to be issu e d on a discount b a sis under competitive bidding.
The bills of this series wil l be d a t e d N o v e m b e r 19, 19^-1 > and w ill
m a ture F e b ruary 12>, 19^2, w h e n the face amount wil l be payable
without interest.
T h e y will be i s s u e d in b e a r e r form only, and in
d e nominations of $1,000, $5,000, $10,000, $100,000, $ 500, 000, and
$ 1 , 0 0 0 , 0 0 0 (maturity value).
Tenders wil l be r e c e i v e d at Federal R e s e r v e Banks and B r a n c h e s
up to the closing hour, two o ' clock p. m., Eastern S t a ndard time,
Monday, N o v ember 1 7 , 19^1.
T e n d e r s wil l not be r e c e i v e d at the
T r e a s u r y Department, Washington,
E a c h t e n d e r must be for an even
m u l t i p l e of $1,000, and the price o f f e r e d must be expressed on
the basis of 100, w i t h not more than three decimals, e, g . , 99 *925 *
Fractions may not be used.
It is u r g e d that tenders be made on
the p r i n t e d forms and f o r w a r d e d in the special envelopes w h i c h
will be s u p plied by Federal R e s e r v e Banks or B r a nches on a p p l i c a
tion therefor.
Tenders w i l l be r e c e i v e d without deposit from i n c o r p o r a t e d
banks and trust c o m p anies and from r e s p o n s i b l e and r e c o g n i z e d
dealers in investment securities.
T e n ders from others must be
a c c o m p a n i e d b y payment of 10 percent of the face amount of T r e a s u r y
bills applied for,» unless the tenders are a c c o m p a n i e d b y an express
gu a r a n t y of payment by an i n c o r p o r a t e d b a n k or trust company.
I m m e d i a t e l y after the c l o s i n g hour, tenders will be o p ened
at the Federal R e s e r v e Banks and Branches, f o l l o w i n g w h i c h public
a n nouncement wil l be m a d e b y the S e c r e t a r y of the Tr e a s u r y of the
amount a nd price range of a c c e p t e d bids.
Those sub m i t t i n g tenders
will be a d v ised of the a c c e ptance or r e j e c t i o n thereof.
The
Sec r e t a r y of the T r e a s u r y expressly re s e r v e s the right to accept
or reject any or all tenders, in w h ole or in part, and his action
in any such r e s pect shall be f i n a l . . P a y ment of a c c e p t e d tenders
at the prices o f f e r e d must be made or c o m p l e t e d at the Federal
R e s e r v e B a n k in cash or other i mmediately available funds on
No v e m b e r 1 9 , 19^1, provided, however, any q u a l i f i e d d e p o sitary
will be p e r m i t t e d to m a k e payment b y credit for T r e a s u r y bills
allot t e d to it for itself a nd Its customers up to any amount for
w h i c h it shall be q u a l i f i e d in excess of existing deposits w hen
so n o t i f i e d b y the Federal R e s e r v e B a n k of its district..
The income d e r i v e d fro m T r e a s u r y bills, w h e ther interest or
gain from the sale or other d i s p o s i t i o n of the bills, shall not
have any exemption, as such, and loss fro m the sale or other d i s
p o s i t i o n of T r e a s u r y b i l l s shall not have any special treatment,
as such, under Federal t a x Acts n o w or h e r e a f t e r enacted.
The
bills shall be subject to estate, inheritance, gift, or other
excise taxes, w h e t h e r Federal or State, but shall be exempt from
all taxation n ow or h e r e a f t e r imposed on the principal or interest ,
thereof b y any State, or any of the p o s s e s s i o n s of the U n i t e d
23-W-
-2-
S t a t e s , o r by any l o c a l t a x i n g a u t h o r i t y .
F o r p u rp o s e s o f t a x a
t i o n th e amount o f d i s c o u n t a t w hich T r e a s u r y b i l l s a r e o r i g i n a l l y
s o l d by th e U n ite d S t a t e s s h a l l b e ’ c o n s i d e r e d t o be i n t e r e s t .
Under S e c t i o n s 4-2 and 1 1 7 ( a ) ( l ) o f th e I n t e r n a l Revenue Code,
as amended by S e c t i o n 1 1 5 o f th e Revenue A ct o f 194-1, th e amount
o f d i s c o u n t a t w hich b i l l s i s s u e d h e r e u n d e r a r e s o l d s h a l l not be
c o n s i d e r e d t o a c c r u e u n t i l su ch b i l l s s h a l l be s o l d , redeem ed o r
o t h e r w i s e d i s p o s e d o f , and s u c h b i l l s a r e e x c lu d e d from c o n s i d e r a
t i o n as c a p i t a l a s s e t s .
A c c o r d i n g l y , t h e owner o f T r e a s u r y b i l l s
( o t h e r th a n l i f e i n s u r a n c e c o m p a n ie s ) i s s u e d h e re u n d e r need
i n c l u d e in h i s income t a x r e t u r n o n ly t h e d i f f e r e n c e betw een th e
p r i c e p a i d f o r s u c h b i l l s , w h e th e r on o r i g i n a l i s s u e o r s u b s e
quent p u r c h a s e , and t h e amount a c t u a l l y r e c e i v e d e i t h e r upon s a l e
o r re d e m p tio n a t m a t u r i t y ^ d u r i n g th e t a x a b l e y e a r f o r which th e
r e t u r n i s made, a s o r d i n a r y g a i n o r l o s s .
T r e a s u r y D epartm ent C i r c u l a r No. 4-18!, as amended, and t h i s
n o t i c e , p r e s c r i b e t h e te rm s o f th e T r e a s u r y b i l l s and g o v e rn th e
co n d itio n s of t h e i r is s u e .
C op ies o f th e c i r c u l a r may be o b t a i n e d
from any F e d e r a l R e s e r v e Bank o r B r a n c h .
-0O0-
TREASURY DEPARTMENT
Washington
(The following address by SECRETARY MORGENTHAU
before the 75th Annual Meeting of the National
Grange in Worcester, Massachusetts, is scheduled
to be delivered at 3:00 p.m.. Eastern Standard
Time. Saturday, November 15, 1 9 m , and is for
"release upon delivery at that time.)
Today, as never before, it is an honor to be an
American farmer.
The future health and happiness of
all the world depends, as never before, upon the
American farmer's work and skill and enterprise.
I am very happy, therefore, to have this opportunity
of speaking to a great audience of American farmers,
and to accept at your hands, Mr. Taber, this pin
that certifies to twenty-five years' membership in
the National Grange.
To anyone who lives and works with the good
earth it brings a new pride year after year to sow
the new crop, to tend it carefully, and to harvest
it at last.
Speaking to you as a fellow farmer
rather than as Secretary of the Treasury, I can assure
you that one of the great satisfactions of my life is
to see the trees that I planted on my own farm
twenty-five years ago grow and blossom and bear
28-45
-
good fruit.
2
-
And during these twenty-five years it
has meant a great deal to Mrs. Morgenthau and to me
to be members of the Wicopee Grange, near our farm
in the Hudson Valley.
The local Grange has given us
a place to discuss common problems with our neighbors,
and it always has given us the feeling that we are
a part of this great national organization which
for seventy-five years has been the friend of every
farmer in the United States.
I shall wear my
membership pin as a badge of honor.
I had intended to remind you at the very start
of this talk of the danger of inflation as it might
affect the farmers of the United States; but your
National Master has already spoken of the danger, and
has done it eloquently.
May I quote a few sentences
of what he said?
"Next to the suffering on the battlefield and
the anguish of those at home, inflation is one of the
calamities of war . . . How could any farmer forget
1921 and '22, or 1932 and '33? . . • Inflation
endangers all forms of wealth, every bank deposit,
and, in fact, all of the established accumulations
of generations."
- 3 One of the most effective ways to fight
inflation is to produce more of the goods which do
not compete with our defense industries for materials
or for labor.
That means, above all, to produce
more food in the interests of the consumer and the
farmer as well.
I should like to pay my tribute to
the work of Secretary Wickard and the Department of
Agriculture in encouraging our farmers to grow more
of the right kinds of food —
more dairy products,
vegetables, fruits and meats, the so-called protective
foods on which our national well-being depends.
The opportunity ahead of American farmers at
this time is so vast that very few of us, I think,
can conceive it.
We have prided ourselves on being
the best fed nation in the world.
Europeans who
have come to our shores have marvelled at the stacks
of fruit and vegetables in our shops and at the
abundance of the diet available to American families.
Yet we are not as well nourished as outward appearances
might seem to show.
Only the other day the President
of the United States expressed his sense of shame
- H
-
at the high percentage of recruits for the army who
had to be rejected.
Nearly 50 percent of two million
men examined for selective service were found to be
unfit, and of those rejected a large number were
suffering from dental defects or other ills that
probably were due to faulty nutrition.
The President
was not overstating when he described these conditions
as an indictment of America.
A few years ago I took part in the conception
and inception of the food stamp plan, which was an
attempt to bring some of our surplus commodities into
the hands of the underprivileged.
The plan was
conceived at a meeting between Vice President Wallace,
Mr. Harry Hopkins, Doctor Thomas Parran, and myself,
later it was perfected by Mr. Milo Perkins of the
Department of Agriculture.
In line with this effort
Doctor Parran, who is now Surgeon General of the
United States and was then in the Treasury, undertook
an investigation into food-buying habits and nutrition
in the District of Columbia.
Here was a compact
area where per capita wealth was higher than that of
- 5
-
any State, yet Doctor Parran found widespread
under-nourishment, especially in milk, green vegetables
and citrus fruits.
I suspect that similar investigations
in other parts of the country might yield a similar
result even today, when our public is more vitamin
conscious than when Doctor Parran1s study was made.
This is a challenge that we as a government, and
we as farmers, must meet together.
The Government
can help by encouraging and promoting the production
and use of the right kinds of food, as it is beginning
to do right now, under the leadership of Miss Harriet
Elliott of the Consumers Division of the Office of
Price Administration.
But farmers can do by far the
biggest part of the job by producing more —
by
diverting land and effort to the production of milk,
butter, eggs, pork products, fruits and vegetables.
It must no longer be said of this rich country of
ours that millions of our people still go without
the food that is necessary to good health and good
morale.
-
6
-
Side by side with this challenge that confronts
us at home, there has come a still more urgent and
insistent cadi from across the sea.
The British
people, as you know, have had their chief sources
of food supply cut off either by invasion, as in the
cases of Holland and Denmark, or by shipping shortages,
as in the cases of Australia and New Zealand.
The
British today are living under conditions of siege.
Their island home is one vast fortress, and every
man, woman and child is in the garrison, fighting our
fight as well as their own.
It is our responsibility,
and our high honor, to see that they are fed, not
with a trickle of occasional shipments, but with
enough sustaining food to enable them to carry on.
American farmers are already doing a mighty woric
in sending food to England in her time of greatest
need.
Secretary Wickard has already told you of the
huge amounts that we are pledged to send during 19^-2.
It will help us, I think, to produce those vast
quantities if we always remember that our food shipments
are bringing renewed strength and renewed courage to
those who are in the front line of freedom.
- 7 That is an achievement which must be continued
throughout 19^-2 and as long as the war may last.
It is probably the greatest single call ever made
upon American farms.
If you add it to our own
requirements, it is a call that will use all of our
ingenuity, all our effort, and all of the experience
that we have gained in recent years, if we are to
meet it successfully.
In this effort the American farmer is as vitally
important as the aircraft worker who builds a new
bomber or the shipyard worker who helps to send a
new battleship on its way.
Knowing what I do oi the
great-heartedness of our farmers and of their capacity
for hard work in a great cause, I am confident that
that call will be answered and that England will be
able to win the victory that is our own hearts* desire.
But after the victory —
Allies win this war —
what then?
After the
and they are going to win it
the opportunity for American agriculture and the need
for colossal production of the right kinds of food
will be much greater than it is even today.
Where
-
8
-
tens of millions in England are depending on us now,
hundreds of millions throughout the continents of
Europe and Asia will be stretching out their hands
to us when the war is over,
I am in favor of seeing that the credit of the
United States is used to do the humanitarian thing,
the economic thing, the sound thing, in putting the
great food production of the United States into the
hands of the hungry millions.
I am one of those who
believe that in the long run, as Vice President Wallace
has said, service to humanity is economically sound.
I am thinking not only of the actual hunger and
misery that will be sure to exist when the next
Armistice comes, but also of the ruined agriculture
of many countries that depended upon farming for
their very existence.
I am thinking of the fine herds
that have been slaughtered in Denmark and Holland,
which lived on their exports of dairy products.
I am
thinking of the scorched es.rth in the great farming
areas of Russia, where farm houses and farm implements
have been destroyed in the past five months on a
- 9 scale unparalleled, in all history.
There will be
a lack of seed, a lack of feed for livestock, and
in many countries a lack of manpower to tend the
farms.
Again, as in the past, American agriculture
can save Europe from hunger and from the anarchy
that comes with hunger on such a scale.
It is true, as the President said recently, that
our first job now is to win the war rather than to
concentrate on blueprints of what is to follow.
I agree with him, yet I think there is one great
fact about the coming democratic order in Europe
which we should do well to remember now.
That is that
great masses of decent hardworking men and women will
no longer tolerate the economic insecurity which
furnished so much of the fuel for the political
turmoil of the past 25 years.
They are going to
demand certain elementary guarantees for a decent
life, and I think they will be right and. amply
justified in their demand.
In order to build a better world —
and that
goes for our own country as well as for those
abroad — we must recognize the citizen's right to
10
-
have a minimum standard of food with which he can
live the life of a free man.
My own feeling is that
we should guarantee to every man, woman and child
the right to have enough milk and butter, enough
fruit and vegetables, enough of the protective foods
of all kinds, so that everyone can be fit to do his
part in the world of tomorrow.
After all, we in America decided about 75 years
ago, about the time the National Grange was founded,
that everyone was entitled to a decent education as
a matter of right, and we established the greatest
free school system in the world to provide that right.
We found that it was not fair, and that it did not
pay us as a nation, to permit illiteracy on a vast
scale and to enable only those with wealth or other
advantages to have a proper schooling.
We have
provided that schooling with State funds, and nobody
would dream of abandoning it now.
We decided eight years ago that every citizen
should have protection against unemployment or old
age or disability, and we enacted a whole series of
historic measures to help him obtain that protection
11
as a matter of right.
We found that it was not fair
and that it did not pay us as a nation to leave
millions of our people at the mercy of economic
cycles over which they had no control.
These changes
have been accepted, and I doubt whether any except
the most uncompromising Tory among us would abandon
them now.
What I am suggesting would merely carry the
process a step further.
I speak of it today not as
a dream but as something which I am convinced must
follow, not only in this country but all over the
world, if we are not to revert into an endless
barbarism of wars and revolutions.
It is our best
hope of ensuring the survival of the way of life
which we treasure in common with other free peoples
throughout the world.
I have suggested it to this particular audience
because I wa,nt you to consider what a tremendous
opportunity it brings to American farmers.
If our
people and other peoples are to be guaranteed a
minimum standard of nutrition, which I believe is
their right, then we in this country will have to
produce the food that will make that standard possible.
12-
That minimum for every adult was recently set by
the National Nutrition Conference at 4-1/2 quarts
of milk per week, one egg a day, one serving of
meat a day, and two daily servings of vegetables
and two of fruits.
If we were to attain such a minimum goal, if
we were to recognize it as a right that belonged to
everyone, it would mean a vast increase in our
consumption and our farm production.
It would mean
an increase of at least forty percent in our present
consumption of milk and milk products alone.
It
would mean a doubling of our present consumption of
leafy vegetables and of the fruits that are rich in
vitamins.
It would mean that the farmers would have
a greatly increased market here at home —
the best
kind of market, for it would not be subject to
foreign tariffs, and it would also increase-steadily
as population increased.
I have never been one of those who believe that
we are heading into a period of misery and darkness.
Certainly there need be no agricultural misery in
- 13 our country after this war.
There need be and there
must be no repetition of 1920 and 1921, which, as
you know from bitter experience, were black years
for American farmers.
If we could provide a minimum food standard for
everyone — and our farm lands have the capacity to
provide it —
there would be less illness due to
faulty nutrition, more production from our workers,
a greater length of life for all our people, and
an assured future for all American farmers.
INSOLVENT NATIONAL BANKS LIQUIDATED AID FINALLY CLOSED
’
________ DÜRING THE MONTH OF OCTOBER. 19Al____________
Name and Location Of Bank
Date of
Failure
Total
Disbursements
Including
Offsets Allowed
The Prudential Bank
Washington, D. C.
3-17-36
|
Inland-Irving Nat’l Bank
Chicago, Illinois
6-9-31
First-Henry National Bank
Henry, Illinois
Per Cent
Dividends
Declared
to All
Claimants
None
22,169
$
Capital
Stock at
Date of
Failure
Cash, Assets,
Uncollected Stock
Assessments, etc,
Returned to
Shareholders
100,000
1
000
3,784,995
60.66
525,000
000
11-7-33
655,595
70.37
50,000
000
Essex National Bank
Haverhill, Massachusetts
8-29-33
2,437,438
100,000
000
Reno National Bank
Reno, Nevada
12-9-32
6,4.56,178
57.65
700,000
000
Citizens National Bank
Long Branch, New Jersey
1-20-32
1,401,749
59.32
150,000
000
Commercial Nat1! Bank
Raleigh, North Carolina
12-21-31
4,266,260
70.57
600,000
eoo
United States NB & Tr. Co.,
Kenosha, Wisconsin
11-15-32
1,061,838
7 5 .4 8
200,000
000
101,265 2/
1/ Receiver appointed to levy and collect stock assessment covering deficiency in value of
assets sold, or to complete unfinished liquidation»
2/
lO O
per
c e n t p r in c ip a l a n d
p a r t ia l
in t e r e s t
p a id
to
c r e d it o r s .
/
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
RELEASE,
IING NEWSPAPERS
"7f~.” "---- /
///> i
Press Service
2§"</£>
h i
During the month of October, 1941, the liquidation of eight
Insolvent National Banks was completed and the affairs of such receiv
erships finally closed.
Total disbursements, including offsets allowed, to depositors
and other creditors of these eight receiverships, amounted to $20,086,222,
while dividends paid to unsecured creditors amounted to an average of
69*07 per cent of their claims.
Total costs of liquidation of these re
ceiverships averaged 6*12 per cent of total collections from all sources
including offsets allowed.
Dividend distributions to all creditors of all active receiv
erships during the month of October, amounted to $878,318,
Data as to
results of liquidation of the receiverships finally closed during the
month are as follows:
TREASURY DEPARTMENT
C o m p tr o lle r o f th e C u rre n cy
W ash in gton
‘FOR RELEASE, MORNING NEWSPAPERS,
S a t u r d a y , November 1*5» 19^1«_____
ll/ l4 A l
During t h e month o f O c to b e r ,
P ress S erv ice
No. 26-^-6
19^1,
th e l i q u i d a t i o n o f
e i g h t I n s o l v e n t N a t i o n a l Banks was c o m p le te d and th e a f f a i r e
o f su ch r e c e i v e r s h i p s
f in a lly clo se d .
T o tal d isb u rsem en ts,
in clu d in g o f f s e t s
a llo w e d ,
t o r s and o t h e r c r e d i t o r s o f t h e s e e i g h t r e c e i v e r s h i p s ,
to d ep o si
amounted
t o $ 2 0 , 066, 2 2 2 , w h ile d iv id e n d s p a i d t o u n s e c u r e d c r e d i t o r s
amounted t o an a v e r a g e o f 6 9 .0 7 p e r c e n t o f t h e i r c l a i m s .
T o ta l c o s ts of li q u i d a tio n of th e s e r e c e i v e r s h ip s averaged
6 .1 2 p er cen t of t o t a l c o l l e c t i o n s
from a l l
sou rces in clu d in g
o f f s e t s allow ed *
D ivid en d d i s t r i b u t i o n s t o a l l
c re d ito rs of a l l a c tiv e
r e c e i v e r s h i p s d u r i n g t h e month o f O c t o b e r ,
amounted t o
D ata as to r e s u l t s o f l i q u i d a t i o n o f th e r e c e i v e r s h i p s f i n a l l y
c l o s e d d u rin g t h e month a r e as f o l l o w s :
INSOLVENT N A T IONAL BANKS L I Q U I D A T E D AND F I N A L L Y CLO SED
__________ D U R I N G THE M O N T H OF OCTOBER, 194-1___________
Name and L o c a t i o n o f Bank
Date o f
F a ilu re
T o tal
D isb u rse m e n ts
In clu d in g
O f f s e t s A llowed
The P r u d e n t i a l Bank
W a sh in g to n , D. C.
3- 1 7 - 3 6
1
1/
I n l a n d - I r v i n g N a t ' l Bank
C h ic a g o , I l l i n o i s
6- 9 - 3 1
F i r s t - H e n r y N a t i o n a l Bank
Henry, I l l i n o i s
2 2 ,1 6 9
P e r Cent
D ivid ends
D e c la r e d
t o A ll
C la im a n ts
None
C a p ita l
Stock a t
Date o f
F a ilu re
\
1 1 0 0 ,0 0 0
C ash, A s s e t s , .
U n c o lle c te d S tock
A s s e s s m e n ts , e t c ,,
R e tu rn e d to
S h areh old ers
$
000
3 ,7 « N 995
6 0 .6 6
5 2 5 ,0 0 0
000
1 1 - 7 -3 3
6 5 5 ,5 9 5
7 0 .3 7
50,000
000
E s s e x N a t i o n a l Bank
H a v e r h i l l , M a s s a c h u s e tts !
g -2 9 -3 3
2,U 7,pa
10 0 ,0 0 0
000
Reno N a t i o n a l Bank
Reno, Nevada
1 2 - 9 -3 2
6 , 1*5 6 ,17 8
5 7 .6 5
700,000
000
C i t i z e n s N a t i o n a l Bank
Long B r a n c h , New J e r s e y
1 - 2 0 -32
1 , 1*0 1 , 71*9
5 9 .3 2
1 5 0 ,0 0 0
000
Com m ercial N a t ! l Bank
R a l e i g h , N o rth C a r o l i n a
12 - 21-31
4-, 2 6 6 ,2 6 0
7 0 .5 7
600,000
000
I I - I 5 -32
1 , 0 6 1 , 33s
75. ^
200,000
000
&
U n ite d S t a t e s NB
T r.
Kenosha, W is c o n s in
1/
1 0 1 .2 6 5 2/
Co.
R e c e i v e r a p p o in te d t o l e v y and c o l l e c t s t o c k assessment c o v e r i n g d e f i c i e n c y in v a l u e o f
a s s e t s s o l d , o r t o c o m p le te u n f i n i s h e d l i q u i d a t i o n .
4#
100 p e r c e n t p r i n c i p a l
1
and p a r t i a l
I n t e r e s t p aid t o c r e d i t o r s
— o O o —
Z'iT - ' c f
5PTEMBER, 19l*l
TREASURY DEPARTMENT
Washington
?months
ress bervice
FQR DftffiDIATE RELEASE,
No.
" ^ O o t o W rfr, 1941.
Commissioner of Customs W. R. Johnson today issued the following
statement shov/ing imports o f ^ Lstilled liquors and wines, and duties
call acted thereon, covering ^ S P p T § 4 1 , with c ompar at Ive^f inures for
1941
ana 3f* ^ l/K^i941, ana the seven months ending
and 1940.
Uiiiuj
rtJLimiiU
\
uj.u
8,223,1*55
7,968,951
16 ,192 ,1*06
8,6 6 3 ,9 8 3
r ^ ^Cu stoma. finstody
2 ,1 5 2 ,0 9 1
17h,2l6
2,326,307
1 3 2 .A72
—
Stock in Customs Bonded Warehouses a t end
SPARKLING WINES (Liquid Gallons):
Stock in Customs Bonded Warehouses a t beginning
Total Imports (Free and Dutiable)
Available fo r Consumption
Entered into Consumption (a )
16 ,228,378
7 ,5 2 7 ,5 7 7
■I
7,1*95,81*5
1,61*8,738
167,973
1 ,8 1 6 ,7 1 1
136,036
1 ,516,518
1 ,866,218
3 ,3 8 2 ,7 3 6
1,181*,792
— 4t93™'"
-¡tï±09-
2 ,1 9 3 ,8 3 5
2,1 5 2 ,0 9 1
1 ,6 8 0 ,6 7 5
2 ,1 9 3 ,8 3 5
210,887
1,1*69
212,356
11.029
2lR ,693
322
215,015
3,629
355,339
221,290
j& j*
fSigrt-.n/Ay
2,1^3,013
97,8iiA
2,250,857
98,273
18,1*9#
8 , 682,306
1,728
357,067
31,832
63,811
376,71*6
273,892
650,638
321*,81*9
201,327
325»235
1*5,988
267,278
325,235
DUTIES COLLECTED ONs
D istille d Liquors
S t i l l Wines
Sparkling Wines
, T-Q-h.q1 TVn
Tetel^43utigT5~tfoi±^cted: - r ^
TOTAL DUTIES COLLECTED
s
_______
?
-I^rcent'^Ctrlrleotod
^
_~ -e t^ L i^_a_c._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ '~ rrzut
(a) Including "withdravrals for ship supplies and diplomatic use.
(l) Revised
1,283,1*99
2,81*1*, 195
l*,127,691*
2 , 1*1*0,106
6,913
1 ,6 8 0 ,6 7 5
**1+99"*
Stock in Customs Bonded Warehouses a t end_______________ 201,327_______ 210,887
1
l*,l*7l*,317
ll,751*,06l
v
JC
L
j_
u
.w
i.ioj •
Stock in Customs Bonded Warehouses a t beginning
Total Imports (Free and Dutiable)
Available f o r Consumption
Entered into Consumption (a)
% p OT,f
ending September 30,
19l*l
19l*0
^ .^tgin ■nun
— & féjê — -
Z ' â '"- i f
/>
IMPORTS OF DISTILLED LIQUORS AMD WINES AMD DUTIES COLLECTED THEREON - SEPTEMBER, 19l*l
September
191a
August
19U1
September
19kO
9 months ending September 30,
~
"19^1
19^0
DISTILLED LIQUORS (Proof Gallons)?
at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
Exported *from Customs.Custody
at end
8,007,581
8,300,585
71*3,992
9,01*1*,577
1,51*8,732
—
7,1*95,81*5
8,1*93,851*
958,1*36
9,159,1*1*1 0 ) 9,1*52,290
769,783
855,152 0 )
jQÛ
tivl
•3,70t*.
8,682,306
8,300,585
2,152,091
171*,216
2,326,307
132,1*72
- W —
2,193,835
2,153,013
1 ,61*8,738
97,81*1*
2,250,857
98,273
— 1*93—
2,152,091
167,973
1,816,711
1 ,151,860 (1 )
STILL WINES (Liquid Gallons)?
at beginning
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
atoms PSmto^y
Stock in Customs Bonded Warehouses at end
136,036
1,680,675
SPARKLING UNES (Liquid Gallons)?
at beginning
210,887
l,k69
Total Imports (Free and Dutiable)
Available for Consumption
Entered into Consumption (a)
% P n~H ~-aA-“f ! a a Q m Cmatady
212,356
11.029
A*V
201,327
at end
DUTIES COLLECTED ON?
Distilled Liquors
Still Wines
Sparkling Wines
, Tjaf.a1 Dii
T etei-4)u tieT r^ 0l±eeted ““O tr-^ther^oinBI0dities
TOTAL DUTIES COLLECTED
211i,693
322
215,015
3,629
1*99"210,887
355,339
1,728
9wê
1*,1*71*,317
11 ,751*,061
16,228,378
7,527,577
8,682,306
1,283,1*99
2,81*1*,195
1*,127,691*
2,1*1*0,106
•6,9131,680,675
376,71*6
273,892
U5,988
201,327
77,956
121,565
10,51*5..
9l*,l*9l*
$ 2 *169 5^6
32,31*1,606*^
$3l*,5il,235
$22,627,156
_ (fit>.iMk>i'A'Pü"”i3v T rrvriS T vm sT '
221,290
325,235
I 2, 081, 01*8' ' $ 1, 891,¡*56
'^ 7 3 t
3,382,736
1,181*, 792
-lfï±e9—
2,193,835
267,278
63,811
aumlflijlI)j1
130,1*85
32,661*
£ li^096r?0ti
32,1Q7T?69
$36, 111*,1*73
2
1 ,516,518
1 ,866,218
31,832
357,067
# 3, 81*3, 5#
-Percent 'CPiriooted
(a) Including •withdra'wals for ship supplies and diplomatic use*
(l) Revised
f ? ) Nnii flint niimil'iMr
8,223,1*55
7,968,951
16,192,1*06
8,663,983
-30,5?e7,1*95,81*5
-
650,638
321*,81*9
325.235
$ 21,31*5,330
$ 18,570,757
1,071*,1*67
2,035,761
185,11*9
961*,1*10
» 22;6ei*,955
$ 61,570,9?g
-3l8,07it,910 - 220,881*,7l*3
$31*0,679,856
$21*2,1*55,671
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Friday* November 14* 1941
Press Service
No. 28-47
Commissioner of Customs W. R* Johnson today issued the following
statement showing imports of distilled liquors and wines, and duties
■collected thereon, covering September, 1941,. with comparative figures
for September, 1940 and August, 1941, and the seven months ending
September 30, 1941 and 1940.
September August September 9 months ending September 30.
1941
1941
1941
1940
1940
DISTILLED LIQUORS
(Proof Gallons):
Stock in Customs Bonded Warehouses at beginning ..... 8,300,585 8,007,581 8,493,854 8,223,455
Total Imports (Free and
Dutiable).................
743,992 1,151,860*
958,436 7,968,951
Available for Consumption... 9,044,577 9,159,441* 9,452,290 16,192,406
Entered into Consumption (a) 1,548,732
769,783 8,663,983
855,152*
Stock in Customs Bonded Warehouses at end.... .
7,495,845 8,300,585 8,682,306 7,495,845
STILL WINES (Liquid Gallons):
Stock in Customs Bonded Warehouses at beginning....... 2,152,091 2,153,013 1,648,738 1,516,518
Total Imports (Eree and
Dutiable)*...............
174,216
167,973 1,866,218
97,844
Available for Consumption... 2,326,307 2,250,857 1,816,711 3,382,736
Entered into Consumption(a) •
132,472
98,273
136,036 1,184,792
Stock in Customs Bonded Warehouses at end............ 2 193,835 2,152,091 1,680,675 2,193,835
SPARKLING WINES
(Liquid Gallons):
Stock In Customs Bonded Warehouses at beginning.......
210,887
355,339
221,290
214,.693
Total Imports (Eree and
Dutiable)..... ..... .
45,988
1,728
1,469
322
Available for Consumption
267,278
357,067
215,015
212,356
Intered into Consunrption(a).
63,811
11,029
3,629
31,832
Stock in Customs Bonded Warehouses at end........ .
201.327
201.327
325.235
210.887
DUTIES COLLECTED ON:
Distilled Liquors
$3,843,555$2,081,048* $1,891,456$21,345,330
Still Wines
130,485
77,956
121,565 1,074,467
Sparkling Wines
32.664
10.545
94.494
185.149
TOTAL DUTIES COLLECTED.- 36,114,473 34*511,235 23,627*156 340,679,856
(a) Including withdrawals for ship supplies and diplomatic use.
(*) Revised
!
4,474,317
11,754,061
16,228,378
7,527,577
8,682,306
1,283,499
2,844,195
4,127,694
2,440,106
1,680,675
376,746
273,892
650,638
324,849
325.235
$18,570,757
2,035,761
964.410
242,455,671
TREASURY D E P A R T M E N T
Washington
F O R RELEASE, M O R N I N G NEWSPAPERS,
Sunday, N o v e m b e r 16, 1941.
P r ess Service
No. 2 8 -48
I(
■
,
'îj1Çf
!
ip
bln
The Bureau of Customs announced today preliminary figures for imports
of commodities within the quota limitations provided for under the Philippine
fcBu
Independence Act, as amended by the act of August 7, 1939, from the beginning
of the quota periods to November 1, 1941, inclusive, as follows:
Products of
Philippine Islands
Established Quota______ :Unit of ¡Imports as
Period
: Quantity :Quantity: of Nov. 1.194
Coconut oil
Calendar year
425,600,000
Pound
331,912,95t:
Refined sugars
Calendar year
112,000,000) Pound
99,134,751
)V
Sugars other than refined Calendar year
Cordage
Period - May 1
to Dec. 31, 1941
Buttons of pearl or shell
Calendar year
Cigars
Calendar year
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
1,792,000,000) Pound
4,000,000
Pound
807,500. Gross
190,000,000
Number
1,522,517,53
Mitts
'liie
3,115,22R I
609,05«
152,651,49) N
life t
4,275,000
Pound
3,657,70
8EUH
\ J The duty-free quota on Philippine sugars applies to 850,000 long tons, of whf
not more than 50,000 long tons may be refined sugars.
ÖÖ.6
Qf^Customs)
8lilt,7.
y
IP
k Sc'1
The Bureau of Customs announced today preliminary figures for imports
of commodities within the quota limitations provided for under the Philippine
Buft
Independence Act, as amended by the act of August 7, 1939, from the beginning
of the quota periods to November 1, 1941, inclusive, as follows:
:Unit of :Imports as
itaffli
;Quantity: of Nov, 1.19* SSdiu
Established Quota
Quantity
Period
Products of
Philippine Islands
Coconut oil
Calendar year
425,6OO,000
Refined sugars
Calendar year
112,000,000) Pound
99,134,75
Sugars other than refined
Calendar year
1,792,000,000) Pound
1,522,517,534
Cordage
Period - May 1
to Dec* 31, I94I
Buttons of pearl or shell
Calendar year
Cigars
Calendar year
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Pound
w
331,912, 95 !
Pound
3 , 115,224
807,500- Gross
609,05'
4,000,000
19 0 ,000,000
Number
152,651,49< *»f.?s
fat;
Calendar year
4,275,000
Pound
3,657,7011
9iBfP
]/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of whii
not more than 50,000 long tons may be refined sugars.
lacco
îasteaif
0Û 0
(Prepared
Bureau QfJCastomsl
sacco
LiiiityIchnot
TREASURY DEPARTMENT
Washington
FOR RELEASE, -AFTERNOON NEWSPAPERS,
Monday; November 17, 19M-1.
Press Service
No.
The Bureau of Customs announced today preliminary
figures for imports of commodities within the quota
limitations provided for under the Philippine Independence
Act, a.s amended by the act of August 7> 1939> from the
beginning of the quota, periods to November 1, 19^-1 >
inclusive, as follows:
Products of
Philippine Islands
;
:
iUnit of :Imports 6M of
‘
.Quantity: Nov. 1, 19^1
Established Quota
Period
; Quantity
Coconut oil
Calendar year
U2 5 ,600,000
Pound
3 3 1 .9 1 2 ,9 5 9
Refined sugars
Calendar year
112,000,000) Pound
i§ à 3 > t.7 5 ï
Sugars other than refined
Calendar year
1,792,000,000) Pound
Cordage
Period - May 1
to Pec. 31» 19^1
a?
k,000,000
Pound
3,115.22^
Gross
60 9 ,0 50
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
b,275,000
l/
“
1 ,5 2 2 ,5 1 7 .5 3 ^
Number
Pound
152,651,^90
3,657.708
The duty-fr<=e Quote. on. Philippine su.g8.rs applies to S50,000 long tons, of
which not more than 50 ,0 0 0 long tons may he refined sugars.
-o0o~
il
~ 2 -
Commodity
Silver or black foxes,
furs, and articles:
Foxes valued under
$250 ea. and whole
furs and skins
:.
Established Quota
Quantity
: Period & Country :
12 months from
December 1, 1940
Canada
Other than Canada
Tails
12 months from
December 1, 1940
:Unit of :Imports as of
:Quantity :Nbv* 1, 1941
70.000
Number
30.000
«
5,000
(Import quota
filled)
(Import quota
filled)
Piece
(Import quota
filled)
Paws, heads, or other
separated parts
t*
500
Pounds
(Import qubtà
filled)
Piece plates:
n
550
Pounds
364
Articles, other than
piece plates
it
500
Units
Crude petroleum, topped
crude petroleum, and
ffuel oil
Calendar year
Venezuela
Netherlands
1 ,913,049,600
578,806,200
Colombia
Other countries
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than 6% of
total soluble solids
86,956,800
138,587,400
1,500,000
Calendar year
-oOo-
Gallon
n
n
n
Gallon
51
1,607,497,910
(Tariff rate
quota filled)
84,548,835
(Tariff rate
quota filled)
(Tariff rate
quota filled)
TREASURY DEPARTMENT
W ashin gton
FOR RELEASE, MORNING NEWSPAPERS,
Sunday, November 1 6 , 1 9 4 1 .
P ress S ervice
No. 2 8 - 4 9
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s Proclamation
of May 28, 1941, for the twelve months commencing May 29, 1941, as follows:
s
:
:
:
Wheat
Wheat flour, semolina,
crushed or cracked wheat,
•
•
Country of
Origin
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
•
and similar wheat products
•
:Imports May :
•
Imports May 29,
{Established: 29, 1941 to :Established:
1941 to Nov. 1,
:
Quota
:Nov. 1,1941s Quota
:
1941
(Bushels)
(Bushels)
(Pounds)
(Pounds)
•
•
795,000
795,000
—
—
-
—
-
—
-
-
100
—
—
—
100
100
—
—
—
-
—
—
100
2,000
100
—
—
—
—
—
1,000
—
—
—
100
—
—
—
-
-
-
—
—
—
-
-
-
-
-
-
1,000
100
100
534,362
6,536
—
7,125
mm
mm
mm
—
—
mm
mm
mm
—
97
—
—
—
—
-
-
—
-
—
—
-
—
—
-
-
-
—
—
100
100
800,000
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
795,000
m
.
A
4,000,000
*
(Prepwred^^^Appeal^andHPr^eete (Quota UnitX
BureauMof Customs) .
548,120
TREASURY DEPARTMENT
Washington
FOR R E L E A S E i AFTERNOON NEWSPAPERS,
Monday, November 3.7, 19^1.
Press Service
No. 28
The Bureau of Customs announced today preliminary
figures showing the quanties of wheat and wheat flour
entered, or withdrawn from warehouse, for consumption under
the import quotas established in the President’s Proclamation
of May 23, 19H1, for the twelve months commencing May 29,
l $ b l , as follows:
Wheat flour, semolina,
crushed or cracked wheat,
and similar wheat products
Imports May 29»
{Imports May :
19^1 to Nov. 1,
Established:29, 19^1 to ’
.Established
19^1
Quota
:Nov. 1. 19^1:
Quota
(Pounds)
(Bushels)
(Bushels)
(Pounds)
Wheat
Country of
Origin
Canada
China
Hungary
Hong Kong
J epan
United Kingdon
Australia
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
No rway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795»000
795.000
3 ,815,000
2U,0Q0
13.000
13.000
100
8,000
75.000
100
100
5.000
5.000
53^»362
6,536
7.125
1,000
1.000
1,000
1,000
1 M 00
2,000
12.000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
100
2.000
100
1.000
100
97
1,000
100
100
100
100
«0 0 ,0 0 0
795.000
-oOo-
U
,0 0 0 ,0 0 0
^
5 8,1 2 0
***%.£,-ft* /
7
^ T Y
^
/
w*
pP P
/
■ /7
I f
|$$it
/ ? / /
^ v'
Counterfeit »■ t e r notes in circulation during the week ended
/November 7 ^ reached the lowest point for a one week period in the
history of the United States Secret Service, Chief Frank J.Wilson
i»muninwi»»»
reported today*
These aggregated 99 notes
amounting to #729 •
4 & Jt
Chief Wilson attributes' tirtre achievement to
the "Know Your Moneyj
educational p r o g r ^ ^ c m n H F e a on for the past four years^jjrvj
*
0«
memi
A1 though #56,000,000 was wagered during the 16 3 -d a y ^ * w r~s,
e H^ 6n
/at the five Chicago area tracks, only ten dollars in counterfeit money
was passed,
Chief Frank J.Wilson of the United States Secret Service
reported today*
'W
He
This consisted of two counterfeit notes of five
dollars each, passed at the Hawthorne track on September 2^*
The Bureau of Narcotics did not receive a single request from
tate authorities to investigate alleged "doping" of race horses*
-0 V,
TREASURY DEPARTMENT
W ashin gton
FOR RELEASE, MORNING- NEWSPAPERS,
Monday, November 1 7 , .19.^1#
P ress S ervice
No» 2 S - 5 ^
C o u n t e r f e i t n o t e s in c i r c u l a t i o n d u r i n g t h e week ended
November 7 r e a c h e d t h e lo w e s t p o i n t f o r a one week p e r i o d in
th e h i s t o r y o f th e U n ite d S t a t e s S e c r e t S e r v i c e ,
J.
W ilso n r e p o r t e d t o d a y .
C h ie f F ra n k
T h ese a g g r e g a t e d 99 n o t e s amount
in g t o |7 29 #
C h ie f W ilso n a t t r i b u t e d t h e a c h ie v e m e n t t o t h e "Know
Y our Money" e d u c a t i o n a l program t h a t h a s been c a r r i e d on
f o r t h e p a s t f o u r y e a r s by th e S e c r e t S e r v i c e .
-o O o -
A lth o u g h $ 5 6 , 0 0 0 , 0 0 0 was w ag ered d u r i n g t h e 1 6 3 - d a y
h o r s e r a c i n g s e a s o n a t t h e f i v e C h ica g o a r e a t r a c k s ,
d o lla rs
In c o u n t e r f e i t money was p a s s e d ,
C h ie f F ra n k J .
o f th e U n ite d S t a t e s S e c r e t S e r v i c e r e p o r t e d t o d a y .
s i s t e d o f two c o u n t e r f e i t n o t e s o f f i v e d o l l a r s
a t t h e Hawthorne t r a c k on Septem ber
o n ly t e n
W ilso n
T h is c o n
each, passed
2k-f
The B u re a u o f N a r c o t i c s d id n o t r e c e i v e a s i n g l e r e q u e s t
from S t a t e a u t h o r i t i e s t o
i n v e s t i g a t e a l l e g e d "d o p in g " o f r a c e
h o rses.
0O0-
Horoaber 7*
fO KR* BSLLi
Daria« the month of October 19*R, Ih# following
market traaeactiem took fioco tft direct cod guaranteed
•tourItici of the GoTornmontî
S o l « .......... .....
$200,000
Hurehaee »,.... »*,***
-
Set « d o ........ .
Mr* Beffelfinger
Mrs* Shaw
Mr* Martin
file
$200,000
m p 17 A Q T T D V
i XX xjiA. o U i 1»X
T\ p p a p rrn
P LJl
x Ja
p r im
.l
Washington
iH
i
w U''n
111 ml
T K K ilM E E ,
Press Service
No.
.onday, ■¿ u l y C l, 1941.
> ?
~ s-l
market t r an sac tions in^Jrov ernment^ securities for Treasury
investment accounts in J m & S s
&AA 7
Q,
resulted in net
Secretary Lorgenthau announced today.
-OoO-
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Monday, N o v e m b e r 17, 1 9 ^ 1 . .
Ma r k e t
investment
$200,000,
trans act io ns
accounts
Pr ess Service
N o *-
in Gover nm ent
in October,
,
securities
for T r e a s u r y
r e s u l t e d in net
S ec re tar y M o r g e n t h a u a n n ou n c e d today.
sales of
-
Coaffioflity
2-
•_________ Established Quota
îünit of : Imports as of
______ _l_J?er,i.o.d & Country : Quantity :Quantity: Nov. 1, 1941
Silver or black foxes,
furs, and. articlesj
Foxes valued under
$250 ea* and whole
furs and skins
12
months from
December 1, 1940
Canada
- ,
Other tnan Canada
70,000
dumber
(Import quota
filled)
(Import quota
filled)
30,000
n
5,000
Piece
(Import quota
filled)
12 months
Tails
from
December 1, 1940
Paws, heads, or other
separated parts
n
500
Pounds
(Import quota
filled)
Piece plates
»
550
Pounds
364
Articles, other than
piece plates
H
500
Units
Crude petroleum, topped
crude petroleum, and
fuel oil
Calendar year
Venezuela
1,913,049,600
Netherlands
578,806,200
Other
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than 6$ of
total soluble solids
Colombia
Countries
Calendar year
oOo-
86,956,800
138,587,400
1,500,000
Gallon
it
it
tt
Gallon
51
1,607,497,910
(Tariff rate
quota filled)
84,548,835
(Tariff rate
quota filled)
(Tariff rate
quota filled)
TREASURY DEPARTMENT
Washington
FOR HiCLSASï, MORNING NEWSPAPERS,
Tuesday. November 18. 1941.
11/17/41
Press Service
No. 28-52
The Bureau of Customs announced today preliminary figures for imoorts
of commodities within quota limitations provided for under trade agreements,
from the Beginning of the quota periods to November 1, 1941, inclusive, as
follows!
__ _______Commodity
Cattle less than 200
pounds each
8_
Established Quota
»Unit of ! Imports as of
! Period & Country : Quantity ;Quantity; Nov, l lP4i
Calendar year
100,000
Head
99,538
51,720
6,212
Head
«
24,135
(Tariff rate
quota filled)
5,393
Cattle, 700 pounds or
more each (other than
dairy cows)
Quarter year from
Oct. 1, 1941
Cana,da
Other countries
Whole milk, fresh or sour
Calendar year
3,000,000
Gallon
Cream, fresh or sour
Calendar year
1,500,000
Gallon
Fish, fresh" or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk and rosefish
Calendar year
White or Irish potatoes
Certified seed
Other
12
12
months
Sept. 15,
months
Sept. 15,
from
1941
from
IS41
15,000,000
Pound
1,209
8,235,730
90,000,000
Pound
272,235
60,000,000
Pound
150,627
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Red Cedar shingles
Calendar year
2,488,359
Pound
(unstemmed
equivalent) 17,531,353
Square
(Duty-free
quota filled)
TREASURY DEPARTMENT
Washington
.
FOR RFLEASE, MORNING NEWSPAPERS,
Tuesday, November 18. 1QA1.
11/17/41
------------
Press Service
No. 28-52
The Bureau of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements, from
the beginning of the quota periods to November 1, 1941, inclusive, as follows:
Commodity
Cattle less than 800
pounds each
:______Established Quota_____ :Unit of :Imports as of
: Period & Country : Quantity ¡Quantity:Nov. 1. 1941
Calendar year
100,000
Head
51,720
6,212
Head
n
99,588
Cattle, 700 pounds or
more each (other than
dairy cows)
Quarter year
from Oct* 1, 1941
Canada
Other countries1
Whole milk, fresh or sour
Calendar year
3,000,000
24,135
(Tariff rate
quota filled)
Gallon
5,393
Cream, fresh or sour
Calendar year
1,500,000
Gallon
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk and rosefish
Calendar year
15,000,000
Pound
8,235,730
90,000,000
Pound
272,235
60,000,000
Pound
150,627
White or Irish potatoes
Certified seed
Other
12 months
Sept. 15,
12 months
Sept. 15,
from
1941
from
1941
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Red cedar shingles
Calendar year
2,488,359
1,209
Pound
(Unstemmed
equivalent )17,531,353
Square
(Duty-free
quota filled)
J«
PRESS RELEASE
The Bureau of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements, from
the beginning of the quota periods to November 1, 1941, inclusive, as follows:
Commodity
Cattle less than 200
pounds each
Cattle, 700 pounds or
more each (other than
dairy cows)
:Unit of ¡Imports as of:
Established Quota
: Period & Country : Quantity ¡Quantity :Nov. 1, 1941 li
Calendar year
Quarter year
from Oct* 1, 1941
Canada
Other countries
100,000
Head
51,720
6,212
Head
99,588
Whole milk, fresh or sour
Calendar year
3,000,000
24,135 1
(Tariff rate I
quota filled) i
Gallon
5,393
Cream, fresh or sour
Calendar year
1,500,000
Gallon
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cusk and rosefish
Calendar year
15,000,000
Pound
8,235,730 j
90,000,000
Pound
272,235 1
60,000,000
Pound
150,627
White or Irish potatoes
Certified seed
Other
12 months
Sept. 15,
12 months
Sept. 15,
from
1941
from
1941
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Red cedar shingles
Calendar year
2,488,359
n
1,209
j
Pound
(Unstemmed
equivalent)17,531,353
Square
(Duty-free 1
quota filled) j
ME. SCHWARZ’S OF
Mr.
Mr.
Mr.
Mr.
Bell
Gaston
Sullivan
Graves
Mr. Barbee
Mr. Blough
Mrs. Chase
Mrs. Cordover
Mr. Delano
M r . Haas
Mr. Irey
Mr . Lampman
Mrs. Lawton
Mrs. Lucas
To suggest reply
For preparation
For your inform
Please note and
infs
V
irrng teHfi&*e»yggrtfca«^.bMg1ineB
to manufactï
Latioï
Entitled ’’Doing Business with the Procurement Division^ the booklet
answers'^'BMLmany inquiries
inquiries wbdch
wnxcn cegaMppM^* are being received
VJiAJiL, V „
/) 0
d
J L & C & y S ClJ2j^£jhF\ £
it¿ ¿p)
^ t .
-------
✓*>-*-*
__
^
particularly helpful to those firms wiich have hesitated in the past to deal
with the Government because of lack of knowledge of procedure*
Because of its vast purchases — thousands of items ranging from rubber
^±l_
V / s ^ a - aJ i .*
itly is looking for additional sources
bands to locomotives--the Divisic^constantlv
A
< -
y>
of supply, seeking new contacts with businessmen* Manufacturers, small or large,
tlw
out, have equal opportunity t© do business with the Division«
Included in the booklet is a synopsis of laws affecting Federal
procurement, an explanation of the Divisionfs functions and how to get wn its
of bid and performance bonds, inspection, awards, protest^ and instructions
Jr V ^
'
for receiving prompt payment drf. goods sold*
A
Copies of the booklet are available without charge from the Procurement
Division at Washington, D* C
■IP»
«fi
7 1 "S3*!
---- mui
A booklet designed to supply information
to " f am n y m a n u f a c t u r e r s and dealers on p r o c e d u r e s
immmtiK.
n e c e s s a r y to e s t a b l i s h and m a i n t a i n b u s i n e s s relations with
the P r o c u r e m e n t D i v i s i o n o f the T r e a s u r y D e p a r t m e n t was
issued by that a g e n c y
today.
T R E A S U R Y D E P A RTMENT
Washington
fOR R Ê L E A S V A F T E R N O O N NEWSPAPERS,
Wednesday, November 19» 19^-1«_____
P r ess Service
No. 2 g - 53
l i / i j / W
A b o o k l e t d e s i g n e d to supply information to m a n u f a c t u r e r s
and dealers on p r o c edures ne c e s s a r y to e s t ablish and m a i n t a i n
business relations w i t h the Proc u r e m e n t D i v i s i o n of the T r e a s u r y
Department was i s sued by that agency today.
E n t i t l e d "Doing Business w i t h the Procurement Division,"
the b o o k l e t answers m a n y inquiries w h i c h are b e i n g r e c e i v e d in
the office of D i r e c t o r Clifton E. Mack,
He expressed the hope
that the i nformation w o u l d be p a r t i c u l a r l y helpful to those firms
which hav e h e s i t a t e d in the past to deal w i t h the Government
be c a u s e of lac k of k n o w l e d g e of procedure.
B e c a u s e of its vast purchases ~
thousands of items r a n g i n g
from r u bber b a n d s to locomotives are b o u g h t —
the Division, he
said, c o n s t a n t l y is l o o k i n g for a d d i tional sources of supply,
seeking, n e w contacts w i t h businessmen.
Manufacturers, small or
large, he- p o i n t e d out, have equal o p p o r t u n i t y to do bu s i n e s s w i t h
the Division.
I n c l u d e d in the booklet is a synopsis o f _laws a f f e c t i n g
Federal procurement, an expl a n a t i o n of the Division's functions
and h o w to get on its b i d der's list, addresses of the State P r o ^
ourement O f f ices and descriptions of the types of p u r c h a s i n g in
w h i c h the Di v i s i o n is engaged.
Features of the invitation-^to—
b i d are discussed, as are types of b i d and p e r f o r m a n c e bonds,
inspection, awards, protest and i nstructions for r e c e i v i n g prompt
payment for goods sold.
Copies of the booklet are available without
the p r o c u r e m e n t Di v i s i o n at Washington, D. C.
-pOo-
charge
fròm
Doing
Business
with the
Procurement
Division
Treasury Department, Procurement Division
Washington, D. C.
November 1 ,1 9 4 1
Introduction
More
th a n
p u rch a s in g
$ 5 0 0 ,0 0 0 ,0 0 0 , i s
m a te ria ls
now b e in g
and s u p p l i e s
s p e n t a n n u a lly in
f o r th e c i v i l i a n n e e d s o f
the U n ite d S t a t e s G overnm ent.
T hou san d s o f ite m s
m o tiv e s- - p r a c t i c a l l y
ra n g in g
from
ru b b e r
bands
to
lo c o
e v e r y t h i n g m a n u f a c t u r e d b y m a n --a r e
bought.
B e ca u se o f th e v a s t p u r c h a s e s w h ich th e P ro c u re m e n t D i v i
sio n m akes,
of su p p ly ,
it
c o n s ta n tly
is
lo o k in g
s e e k in g new c o n t a c t s
w ith
fo r a d d itio n a l so u rces
b u s in e s s m e n .
The P r o
curem ent Division w elcom es t h e i r c o m p e t i t i o n in s u p p ly in g th e
G overnm ent’ s n eed s u n d er th e c o m p e t i t i v e
b id d in g
s y s te m e s
t a b li s h e d b y law .
M a n u f a c tu re rs
and
d e a le rs --s m a ll
have e q u a l o p p o r t u n i t y t o
D iv is io n ,
and t h i s b o o k le t
r e g u la r b u s i n e s s r e l a t i o n s
do
is
b u s i n e s s w ith
la rg e
a lik e --a ll
th e
P ro cu re m e n t
d e s ig n e d t o show how
w ith
p a r t i c u l a r l y h e l p f u l t o th o s e
and
th e D i v i s i o n .
f ir m s
It
w h ich , b e c a u s e
t o h ave
sh o u ld be
of
la c k
of know ledge o f p r o c e d u r e , h ave h e s i t a t e d i n th e p a s t t o d e a l
w ith th e G overnm ent.
Contents
P a ge
How th e P ro c u re m e n t D i v is io n B u y s----------------------------------
1
Laws A f f e c t i n g F e d e r a l P ro c u re m e n t--------- -----------------------------How to G et on th e P ro c u re m e n t D i v i s i o n M a ilin g L i s t ------In v ita tio n s
4
5
to B id ________________________________________________
Bid and P e rfo r m a n c e B o n d s____________________________________
“
Awards__________________________________________________________________
^
C o n t r a c t s ______________________________________________________________
^
P r o t e s t ______________________________________
I n s p e c t i•o n __ _______________________________________________________
Payment to C o n t r a c t o r s ---------------------------------------------------
13
14
How the Procurement Division Buys
C r e a te d a s
th e
the P ro cu re m e n t
G overnm ent’ s c e n t r a l
D iv is io n
f o r m u la te s
p u r c h a s in g
p o lic ie s
ag en cy ,
o f p u r c h a s in g
and buys th o s e m a t e r i a l s and s u p p l i e s w h ich a r e m ost econom
i c a l l y p u rc h a s e d in q u a n t i t i e s and
fo r
w h ich t h e r e a r e s u f
f i c i e n t l y l a r g e and r e c u r r i n g dem ands.
o r d in a r y f u n c t i o n s o f
c e n tra liz e d
In a d d i t i o n t o th e s e
p u r c h a s in g ,
th e P r e s i d e n t
and C o n g re s s a s s i g n t o th e P ro c u re m e n t D i v i s i o n from tim e t o
tim e s p e c i f i c p rogram s
and e x t r a o r d i n a r y
of
p u r c h a s in g .
fu n c tio n s
w ill
be
B o th
th e s e
o rd in a ry
d i s c u s s e d in d e t a i l in
t h is b o o k l e t .
The t h e o r y o f c e n t r a l i z e d p u r c h a s in g i s a c c e p t e d in b u s i
n ess
and
in
th e
Governm ent
e f f i c i e n t a d m in is tra tio n .
as
an a xio m f o r e c o n o m ic a l and
R e p l a c in g d u p l i c a t i o n in p u r c h a s
ing w ith c e n t r a l i z e d p ro cu re m e n t h a s r e s u l t e d in s u b s t a n t i a l
s a v in g s t o th e t a x p a y e r .
The c o s t o f p a p e r work i s m inim ized
when h u n d red s o f o r d e r s a r e c o n s o l i d a t e d i n t o o n e .
of o r d e r s
p e r m i ts
la r g e -q u a n tity
p u rch ases
and th e v a lu e o f th e t a x p a y e r ’ s d o l l a r
C e n t r a l i z e d p u r c h a s in g i s
of w ays.
It
red u ces
It
b o o k k eep in g .
it
in cre a se d .
an a i d t o v e n d o rs in
th e v e n d o r s ’ o p e r a t i n g c o s t s ,
n e g o tia tio n s can be c a r r ie d
m u ltitu d e .
is
G roup in g
a t lo w er c o s t s ,
on w ith one o f f i c e ,
re d u c e s th e amount o f p a p e r
work
a
number
in
th a t
in ste a d o f a
in v o lv e d in
I f d e l i v e r i e s a r e t o b e made t o th e w a re h o u se ,
r e d u c e s th e number o f d e l i v e r i e s .
T h ese f a c t o r s a l l te n d
to s i m p l i f y th e p ro b lem s o f th e v e n d o r s .
The o r d i n a r y p u r c h a s e s u n d er c o n t r a c t s consum m ated b y th e
P ro cu re m e n t D i v i s i o n may b e b r o a d l y d iv id e d i n t o t h r e e c a t e
g o rie s.
T hey a r e :
p u rch ases
u n d er
th e G e n era l S c h e d u le o f
S u p p l i e s , p u r c h a s e s f o r w areh o u se s t o c k , and s p e c i f i c - q u a n t i t y
p u rch ases.
C o n tra c ts
u n d er
th o s e c o n s u l t e d
by
th e
th e
G e n e ra l
S c h e d u le
P ro c u re m e n t
o f S u p p l ie s
D iv is io n
u nd er
a re
w h ich
1
v e n d o rs
ag re e
to
s u p p ly
th e
n eed s
of
a ll
a g e n c ie s in the
D i s t r i c t o f C olu m b ia and o f f i e l d a g e n c i e s a s
th e D i r e c t o r o f P ro c u re m e n t and a s s p e c i f i e d
n e g o tia tio n s .
itie s
life
of
a
T h e se te rm c o n t r a c t s c a l l
com m odity
o f su p p ly i s
T hu s,
a ll
w h ich may
As a
f o r e x a m p le ,
th e f i e l d ,
re s u lt
ra n g e
anyw here
from
o f th e s e c o n t r a c t s ,
t h e r e a r e aw arded c o n t r a c t s
a g e n c ie s ,
w ith t i r e s
The p r i c e s ,
re q u ire s
a
b o th i n
and tu b e s
W ash in g to n ,
fo r
th ree
a sou rce
tire
or
t o supply
D. C . , and in
a u to m o b ile s
p la c e s o f d e liv e r y ,
c o v e r e d by th e c o n t r a c t s .
ment
f o r i n d e f i n i t e quan-
a v a i l a b l e a t a l l ti m e s .
Governm ent
c y c le s .
by
t o be d e l i v e r e d a s o r d e r e d d u rin g the
o f th e c o n t r a c t s ,
months t o a y e a r .
d e s ig n a te d
in th e purchase
and
m otor-
and o t h e r term s are
W henever an a g e n c y o f th e Govern
tu b e ,
i t m ust be o rd e re d from the
v en d o r w ith whom th e c o n t r a c t was made.
Som etim es th e P ro c u re m e n t D i v i s i o n f in d s i t
ta g e o u s
to
h ave
F o r e x a m p le ,
a n o th e r
more
advan
a g e n c y consum m ate a te rm c o n t r a c t .
th e Navy D ep artm en t b e c a u s e o f i t s w ide e x p e r i
e n c e in p e tro le u m p u r c h a s e s , h a s n e g o t i a t e d th e c o n t r a c t s for
l u b r i c a t i n g o i l t o be u se d by th e v a r i o u s c i v i l i a n d epartm en ts
and a g e n c i e s .
Under th e s e c o n d c a t e g o r y ,
ch ases
th e P ro cu re m e n t D iv is io n pur
from m a n u f a c tu r e r s o r d e a l e r s
co m m o d itie s , w h ich
S tre e ts ,
a re
d e fin ite
q u a n t i t i e s of
p la c e d in i t s w areh o u se a t 7 th and D
S . W. , i n W a sh in g to n , D. C.
From t h i s w arehouse are
met th e n ee d s o f th e G overnm ent in th e D i s t r i c t o f Columbia,
an d , when p u r c h a s e s
from w areh o u se s t o c k a r e more econom ical
th a n d i r e c t p u r c h a s e s ,
th e G overnm ent
a v a i l th e m s e lv e s o f w areh o u se s t o c k .
th is
way
a g e n c ie s
in th e fie ld
M a t e r i a l s p u rch ased in
a r e t h o s e w h ich le n d th e m s e lv e s t o w areh ou sin g and
d i s t r i b u t i o n by a c e n t r a l i z e d
A rtic le s
a g e n cy .
p u r c h a s e d u nd er th e s e two c a t e g o r i e s a r e l i s t e d
i n p am p h lets known a s th e G e n e ra l S c h e d u le o f S u p p l i e s .
p am p h lets a r e d i s t r i b u t e d
t o p u r c h a s in g
o ffic e rs
These
throughout
th e G overnm ent, who u s e them a s a g u id e in o r d e r i n g m a te ria ls
from e i t h e r th e P ro cu re m e n t D i v i s i o n W arehouse
tra c to rs .
2
or
from con
Under th e t h i r d c a t e g o r y c o m e
s p e c i f i c a g e n c ie s o f
not le n d th e m s e lv e s
h o u sin g .
Nor i s
th e
to
of S u p p lie s .
G overnm ent.
a rtic le s
T h ese
them
c o n tra c ts
s u ffic ie n t
u n d er
ta s s e ls
G la s s in e b a g s a r e an e x a m p le .
bags
As c o r n r i p e n s ,
to
bags
are
in e x p e r i
th e b a g s a r e s lip p e d
over
th e
To s t o c k th e s e
th e P ro cu re m e n t D i v i s i o n W areh ou se o r
c o n tra c ts
w a r ra n t
T h ese
t o p r e v e n t th e d i s b u r s i n g o f p o l l e n .
in
do
o r w a re
G e n era l S c h e d u le
th e
used e x c l u s i v e l y by th e D ep artm en t o f A g r i c u l t u r e
m en tal w ork.
fo r
co m m o d itie s
c o n s o lid a te d p u rc h a s in g
th e demand f o r
i n c l u s i o n in th e te rm
s p e c ific
f o r them , when o n ly th e D ep artm en t
to
of
make term
A g ric u ltu re
u ses them , would n o t be b e n e f i c i a l t o th e G overnm ent.
In a d d i t i o n
has b een
to
th e
c h a rg e d f r o m
fo re g o in g ,
tim e
s p e c i a l ty p e s o f p u r c h a s e s ,
to
th e
tim e
o r has
P ro cu re m e n t
w ith
b een
r e q u ir e d
c e r t a i n p u r c h a s in g p ro g ram s o f w ide s c o p e .
p u rc h a s in g o f s u p p l ie s and m a t e r i a l s
Program h as b een and i s
ment D i v i s i o n and i t s
ment O f f i c e s ,
fo r
to
h a n d le
th e
f o r th e E m erg en cy R e l i e f
fo r ty -th re e S ta te
c o n tra c ts
c e rta in
F o r e x a m p le ,
now b e in g p e rfo rm e d b y
e s ta b lis h e d p rim a rily
few e x c e p t i o n s ,
D i v is io n
m a k in g
th e
P ro cu re
o r R e g io n a l P r o c u r e
fo r
t h i s p u rp o s e .
W ith
th e p u r c h a s e o f m a t e r i a l s and
s u p p lie s n eeded f o r t h i s P ro g ram a r e
made
d ire c tly
by
each
S t a t e o r R e g io n a l P ro c u re m e n t O f f i c e .
A n o th er p u r c h a s in g
th e
P ro cu re m e n t
p ro g ra m
D i v is io n
is
w h ich
th a t
has
of
b een d e l e g a t e d t o
b u y in g
m a te ria ls
and
S u p p lie s f o r d i s t r i b u t i o n by th e A m e rica n Red C ro s s t o r e f u
gees o f w a r - t o r n n a t i o n s .
ity
of
th e
P ro cu re m e n t
And to d a y , a v e r y im p o rta n t a c t i v
D iv is io n
is
p u r c h a s in g
co m m e rc ia l
item s under th e L e n d -L e a s e A ct and c e r t a i n equipm ent f o r th e
D efen se H ou sin g P ro g ram .
A lth o u g h th e s e
“s p e c i a l , ”
v is io n
th a t
p u r c h a s in g
p ro g ram s
a re
re fe rre d
to
as
i t h as b een th e e x p e r i e n c e o f th e P ro cu re m e n t D i
t h e r e h av e a lw a y s b een s e v e r a l su ch p rogram s in
p r o g r e s s — a lm o st c o n t i n u o u s l y .
has b een c o m p le te d ,
And
as
one
s p e c ia l
p rogram
a new one u s u a l l y h a s b e e n begun.
3
Laws Affecting Federal Procurement
«
The
fu n d a m e n ta l
ta in e d in
S e c tio n
41» S e c . 5 ) .
law o f
G overnm ent
3 7 0 9 o f th e
R e v is e d
p u r c h a s in g
S ta tu te s
is
con
(USC, T itl e
T h is s t a t u t e , a s i n t e r p r e t e d b y th e law o f f i c e r s
o f th e Governm ent and th e C o u r t s ,
p u b lic e x ig e n c y ,
a ll
p u rch ases
re q u ire s t h a t ,
fo r m a te ria ls ,
e q u ip m e n t, m ust b e made a f t e r p u b l i c
e x c e p t in a
s u p p l ie s , and
a d v e r ti s e m e n t
from the
lo w e s t b id d e r who h as o f f e r e d a p r o d u c t i n a c c o r d w ith spec
ific a tio n s .
In
a re
n o rm a l
su b je ct
tim e s ,
p ra c tic a lly
to th is
g e n e ra l
a ll
ru le .
Governm ent
In
tim e s
purchases
o f emergency,
h o w ev er, C o n g re s s i n many c a s e s w a iv e s t h i s r u l e and perm its
th e award o f
p e titio n .
c o n tra c ts
w ith o u t
a d v e rtis in g
I t c a n r e a d i l y be s e e n t h a t th e
o r w ith o u t com
situ a tio n
caused
b y su ch e x t r a o r d i n a r y m e a su re s a s p r i o r i t i e s , p r i c e c e i l i n g s ,
and a l l o c a t i o n s ,
p e titiv e
a
s y s te m .
n o rm al
m a r k e t;
r e q u i r e te m p o ra ry m o d i f i c a t i o n s in th e com
The f o r m a l, c o m p e t i t i v e s y s te m co n tem p lates
when
p re v a ilin g
c o n d itio n s
a re abnormal,
m e c h a n ic s m ust be r e v i s e d t o m eet th e p ro b le m s .
The G o v e rn m e n t’ s p o l i c y on l a b o r r e l a t e d
ch ases i s
e x p r e s s e d i n th e law
H e a le y A ct (USC,
e ra l,
re q u ire s
c o n ta in a
T itle
41,
le s s
p ro v is io n
fa ctu re d .
c h ild
or
The A ct i s
p r o v id e s
la tio n s ,
4
T h is A c t, in gen
a rtic le s
p ris o n
fo r
or
la b o r;
m a te ria ls ;
and t h a t he w i l l n o t pay
r a t e s o f w ages
lo c a lity
t h a t he w ill
fix e d
by th e S e c re
i n w h ich th e goods a r e manu
a d m in is te r e d by th e S e c r e t a r y o f Labor
p e n a ltie s
fo r
v io la tio n s
o f th e s e s tip u
a s w e l l a s o t h e r te rm s o f th e A c t .
The t h i r d
A m erican
3 5 -4 5 ).
t h a t th e c o n t r a c t o r i s a r e g u l a r d e a le r
th a n th e p r e v a i l i n g
t a r y o f L a b o r f o r th e
and
S eçs.
t o F e d e r a l pur
known a s th e Walsh-
t h a t e v e r y c o n t r a c t in e x c e s s o f $ 1 0 ,0 0 0 must
o r m a n u f a c tu r e r o f th e
n o t em ploy
commonly
A ct
g en eral
p o lic y
(USC, T i t l e 4 1 ,
is
th a t
S ec.
c o n ta in e d
1 0 A ).
T h is
in th e Buylaw
re q u ire s
t h a t goods
d u ced , o r
p u rch ased
by th e
m a n u fa c tu re d
a p p ly :
1. When a r t i c l e s ,
G overnm ent
i n th e
U n ite d
m a te ria ls ,
m ust be m ined , p r o
S ta te s .
or
It
s u p p lie s
a re
d oes
not
fo r
u se
o u ts id e th e U n ite d S t a t e s ;
2 . When t h e r e i s n o t s u f f i c i e n t and r e a s o n a b le a v a i l a b l e
co m m ercial q u a n t i t i e s o f s a t i s f a c t o r y q u a l i t i e s ;
3 . When i t
in te re s t;
4.
is
b e lie v e d
t o be i n c o n s i s t e n t w ith th e p u b li c
or
When th e c o s t o f th e a r t i c l e s ,
m a te ria ls ,
o r s u p p l ie s
i s u n r e a s o n a b ly h ig h .
How to Get on the
Procurement Division Mailing List
The f i r s t
D iv is io n i s
T h is
s te p
in
h a v in g
e n a b le s
th e
d o in g
o n e 's
such co m m o d itie s
ti o n s o r
name
m a n u fa c tu re r
ti o n s t o b id o r in f o r m a l
to h ave i t s
b u sin e ss
w ith
p l a c e d on th e
n o tic e s
of
q u o ta tio n s
from
d e s ire d
fo r
f o r su ch i n v i t a
th e P ro c u re m e n t D i v i s i o n in
W ash in gton , D. C . , sh o u ld a d d r e s s a
req u est
t o th e D i r e c t o r
of P ro c u re m e n t, P ro c u re m e n t D i v i s i o n , 7 th & D S t r e e t s ,
W ash in gton , D. C.
lis t.
Any firm d e s i r i n g
name p la c e d on th e m a i lin g l i s t
n o tic e s
m a i lin g
or d e a le r to re c e iv e in v it a
a s he may h ave t o s e l l .
in f o r m a l
th e P ro c u re m e n t
Any f ir m d e s i r i n g
t o h av e i t s
S . W. ,
name p la c e d
on a m a i lin g l i s t j n a in ta i n e d by th e S t a t e P ro c u re m e n t O f f i c e s
should
s ta te
ad d ress
in
w h ich
d r e s s e s o f th e
a r e q u e s t t o th e P ro c u re m e n t O f f i c e r f o r th e
th e
S ta te
fir m
and
d e s ire s
R e g io n a l
to
do
b u sin e ss.
P ro c u re m e n t
The a d
O ffic e s
a re
g iv e n on th e f o llo w in g p a g e s .
5
Alabama -
U. S. Treasury Dept., Old Post Office Bldg., Montgomery, Ala.
Arizona -
U. S. Treasury Dept., 1206 S. Santee St., Los Angeles, Calif,
Arkansas - U. S. Treasury Dept., Old Post Office Bldg., Little Rock, Ark.
California, San Francisco - U. S. Treasury Department, 49 - 4th St.
California, Los Angeles - U. S. Treasury Dept., 1206 S. Santee St.
Colorado - U. S. Treasury Dept., 810 - 14th St., Denver, Colo.
Connecticut - U. S. Treasury Dept. , 341 State St., New Haven, Conn.
Delaware - U. S. Treasury Dept., 100 W. Saratoga St., Baltimore, Md.
Florida -
U. S. Treasury Dept., 49 W. Duval St., Jacksonville, Fla.
Georgia -
U. S. Treasury Dept., 10 Forsyth St. Bldg., Atlanta, Ga.
Idaho - U. S. Treasury Dept., 433 Federal Bldg., Boise, Idaho.
Illinois - U. S. Treasury Dept., 222 W. North Bank Drive, Chicago, 111.
Indiana - U. S. Treasury Dept., Century Bldg., Indianapolis, Ind..
Iowa - U. S. Treasury Dept., 300 Royal UnionLife Bldg., 7th & Grand Ave.,
Des Moines, Iowa.
Kansas - U. S. Treasury Dept., 300 W. 8th St., Topeka, Kansas.
Kentucky - U. S. Treasury Dept., Speed Bldg., 333 Guthrie St. Louisville, Ky.
Louisiana - U. S. Treasury Dept., 707 Canal Bldg., New Orleans, La.
Maine - U. S. Treasury Dept., Park Square Bldg., Bòston, Mass.
Maryland - U. S. Treasury Dept.,
100 W. Saratoga St., Baltimore, Md.
Massachusetts - U. S. Treasury Dept., Park Square Bldg., Boston, Mass.
Michigan - U. S. Treasury Dept., Old Post Office Bldg., Lansing, Mich.
Minnesota - U. S. Treasury Dept.,
1881 University Ave., St. Paul, Minn.
Mississippi - U. S. Treasury Dept. , Sth Floor - Tower Bldg., Jackson, Miss.
Missouri - U. S. Treasury Dept., 6th Floor - Porter Bldg. , Kansas City, Mo.
Montana - U. S. Treasury Dept., Silver Bow Co. Courthouse, Butte, Mont.
Nebraska - U. S. Treasury Dept., 243 N. 13th St., Lincoln, Neb.
Neyada - U. S. Treasury Dept., 303 S. Center St., Reno, Nev.
New Hampshire - U. S. Treasury Dept., Park Square Bldg., Boston, Mass.
New Jersey - U. S. Treasury Dept.,
Street, Newark, N. J.
Industrial
Office Bldg., 1060 Broad
New Mexico,- U. S. Treasury Dept. , New Mexico Public Welfare Bldg., Santa
Fe, N. M.
New York - U. S. Treasury Dept., 76 - 9th Ave., New York £ity, N. Y.
North Carolina - U. S.
Raleigh, N. C.
Treasury Dept., Raleigh Bldg., 5 W. Hargett St.,
North Dakota - U. S. Treasury Dept. , 1881 University Ave., St. Paul Minn.
6
Ohio - U. S.
Treasury
Dept., 5th Floor - New Federal Bldg.,
Columbus,
Ohio.
Oklahoma - U. S.
Treasury Dept., Cotton Exchange
Bldg., Oklahoma City,
Okla..
Oregon - U. S.
Treasury Dept.,
Weatherly Bldg., 516 S. E. Morrison St.
Portland, Oregon.
Pennsylvania - U. S. Treasury Dept., 928 N. 3rd St., Harrisburg, Penna.
Rhode Island - U. S. Treasury Dept., Park Square Bldg., Boston, Mass.
South Carolina - U. S. Treasury Dept.,
1429 Senate St., Columbia, S. C.
South Dakota - U. S. Treasury Dept., 1881 University Ave., St. Paul, Minn.
Tennessee - U. S. Treasury Dept., 433 Stahlman Bldg., Nashville, Tenn,
Texas - U. S. Treasury Dept., 5th Floor - Bedell Bldg., San Antonio, Tex.
Utah - U. S. Treasury Dept., 419 Boston Bldg., Salt Lake City, Utah.
Vermont - U. S. Treasury Dept., Park Square Bldg., Boston, Mass.
Virginia - U. S.
Treasury Dept.,
Schmidt
Bldg.,
7th & Franklin Sts.,
Richmond, V a .
Washington - U. S. Treasury Dept., Alaska Bldg., Seattle, Wash.
West Virginia - U. S. Treasury Dept., 910Qiarrier St., Charleston, W. Va.
Wisconsin - U. S. Treasury Dept., 301 E. Wilson St., Madison, Wis.
Wyoming - U. S. Treasury Dept., 402 City & County Bldg., Cheyenne, Wyo.
Puerto R i c o - U. S. Treasury Dept., Bldg., F. Munoz* Rivera Park, San Juan,
Puerto Rico.
The r e q u e s t sh o u ld show in f o r m a t i o n , e x p l a i n i n g th e p r o s
p e c tiv e b i d d e r ’ s f i n a n c i a l s t a t u s ,
itie s
w h ich
P rocu rem en t
he s e l l s .
D iv is io n
Upon
w ill
commodity c l a s s i f i c a t i o n
and a l i s t
re ce ip t
sen d
of
t o th e
o f th e commod
th e
re q u e s t,
p ro s p e c tiv e
s h e e ts (d e t a i l e d
lis ts
th e
b id d e r
o f ite m s on
which th e P ro cu re m e n t d i v i s i o n d e s i r e s b i d s ) and a q u e s t i o n
n a ir e fo rm , a s shown by th e
f o llo w in g
sa m p le , w h ich m ust be
com p leted and r e t u r n e d w i th in a r e a s o n a b le ti m e .
7
If
th e
d e a le r
or
m a n u f a c tu r e r
in d ic a te s
t h a t he h a s a
bona f i d e i n t e n t i o n o f b id d in g on a p a r t i c u l a r
name w i l l
be
p la c e d
tio n s f o r t h i s
ic a lly
on th e m a i lin g l i s t
a rtic le ,
h is
to re ce iv e in v ita
ite m and f o r a l l o t h e r ite m s w h ich he s p e c i f
in d ic a te s
on
th e
c la s s ific a tio n
m a n u fa c tu re rs who a r e deemed i n e l i g i b l e
s h e e ts .
D e a le r s o r
f o r th e m a i lin g l i s t
are in fo rm ed by m a i l.
When a m a n u fa c tu re r
t i c u l a r ite m
is s u e d ,
a fte r
or
th re e
d e a le r
fa ils
s u c c e s s iv e
is i n t e r e s t e d
b id
in v ita tio n s
th e P ro cu re m e n t D i v i s i o n assu m es
t h is ite m .
to
th a t
he
on a
p a r
h ave
b een
no
lo n g e r
and rem oves h i s name from th e m a i lin g l i s t
R em oval from th e m a i lin g l i s t
however, d o e s
not
a f f e c t h is l i s t i n g
fo r o th e rs .
h is name may be r e i n s t a t e d on th e m a i lin g l i s t
has b e en “s c r a t c h e d , " i f
a c ti o n be ta k e n .
he
re q u e s ts
fo r
f o r one com m odity,
in
M o re o v e r,
from w h ich i t
w ritin g
th a t
th is
T h is p o l i c y i n s u r e s an a c t i v e m a ilin g l i s t
and a v o id s u n n e c e s s a r y s t a t i o n e r y and c l e r i c a l e x p e n s e .
Invitations to Bid
À fo rm a l b id i n v i t a t i o n u se d o r d i n a r i l y f o r r e g u l a r p u r
ch a se s c o n t a i n s t h r e e g e n e r a l f e a t u r e s .
1 . G e n e ra l
c o n tra c ts
C o n d it io n s :
consum m ated
such c o n d i t i o n s a r e
by
th o s e
P ro v is io n s
th e
They a r e :
w h ich
P ro c u re m e n t
co v e rin g
la b o r
p r o v is i o n s o f th e B u y -A m e rica n A c t ,
a p p ly
D iv is io n .
to
a ll
Among
r e q u ir e m e n t s ,
th e
r e c o u r s e s o f th e G overn
ment in c a s e o f d e f a u l t by th e c o n t r a c t o r , s e t t l e m e n t o f d i s
p u te s ,
e tc .
2 . S p e c i a l C o n d it io n s :
P r o v i s i o n s w h ich
to th e s p e c i f i c c o n t r a c t a t h an d .
as method o f d e l i v e r y ,
b a s is
of
a re
a p p lic a b le
T h ese in c lu d e s u ch t h in g s
e v a lu a tio n of b id s ,
su bm is
s io n o f s a m p le s , e t c .
3.
S p e c ific a tio n s :
be p u r c h a s e d ,
p ro d u c t.
s e ttin g
D e s c rip tio n s
fo rth
in
of
th e
c o m m o d itie s
d e ta il
th e
q u a lity
to
o f th e
B ecau se o f lim ita tio n s
in g from
th e
u rg e n c y
of
t o d is p e n s e w ith - fo rm a l
O ffe rs
re ce iv e d
te r m s ,
in c lu d in g p r i c e s ,
is
made,
c o n tra c t is
In
a s itu a tio n ,
te l e g r a m ,
f e r q u o ta tio n s o f p r ic e s
an aw ard
fo r
th is
th e
o f t e n i s n e ce ssa ry
In s te a d ,
a rtic le
method
are
case
in
a re
b id d e rs
c o n tra c to r
to
be
is
to
th e
n o tifie d ,
are
to o f
purchased.
c o n s id e re d ,
a c c e p ta b le
of
in fo r m a l
re q u e s ts
d e ta il
th e
and i f the
Government,
and a formal
F o r many o f th e a r t i c l e s
and
th e con
f u r t h e r communication
W henever a F e d e r a l S p e c i f i
in
th e
p ro p e r re fe re n ce
in v ita tio n .
e r a l S p e c i f i c a t i o n s a r e p u b lis h e d in l e a f l e t
from
p ric e
th a t
o f f e r e d meet th e need.
an a d v e r t i s e d com m od ity,
i s made t o th e S p e c i f i c a t i o n
th e
so
the
p u r c h a s e d , t h e r e h as b een e stab
lis h e d a F e d e ra l S p e c if ic a tio n .
fo r
q u o ta tio n s ,
d e fin ite ly
o f f i c e r c a n d e te rm in e w ith o u t
c a tio n e x is ts
fo r
m a te ria ls o ffe re d ,
w ith th e b id d e r w h e th e r th e m a t e r i a l s
p u rc h a s e d
re s u lt
o r in f o r m a l l e t t e r ,
th e
b id d e r sh o u ld be c a r e f u l t o s t a t e
tra c tin g
it
fa cto rs
e x e c u te d in due c o u r s e .
th e
e x p la in
o r o th e r
a d v e rtis in g .
r e q u e s te d by t e l e p h o n e ,
by
i n ti m e ,
These Fed
form and may be
th e S u p e r in te n d e n t o f D ocu m en ts, W ashington,
D. C.
In a d d i t i o n t o th e
ment D i v i s i o n
fo r
ite m s
h as
on
w h ich
S p e c ific a tio n s .
F e d e ra l
p re p a re d
th e r e
a
S p e c ific a tio n s ,
se t of it s
e x is t
no
th e P ro cu re
own s p e c i f i c a t i o n s
c o r r e s p o n d in g
Fed eral
P r o s p e c t i v e b id d e r s may o b t a i n th e P ro cu re
ment D i v i s i o n S p e c i f i c a t i o n s a t
no
cost
by
w r itin g
to
the
D i r e c t o r o f P ro c u re m e n t.
When t h e r e
i s no s ta n d a r d s p e c i f i c a t i o n , th e requirem ents
and th e d e s c r i p t i o n
of
th e
com m odity
a r e c l e a r l y and fu lly
g iv e n i n th e b id i n v i t a t i o n .
In c lu d e d
p ro p o s a ls
w ith
th e
in v ita tio n
to
b id
a r e c o p ie s o f tne
and i n s t r u c t i o n s , w h ich sh o u ld b e fo llo w e d c lo s e ly .
G e n e r a l l y s p e a k in g ,
th e f o l lo w in g r u l e s sh o u ld be observed:
1. A l l c o p i e s o f th e b id s must be i d e n t i c a l .
2.
A lth o u g h
le g ib ly
w ritte n
b id s
a re a c c e p ta b le ,
type
w r i t t e n b id s a r e p r e f e r a b l e and a r e a s a f e g u a r d t o th e bidder.
10
3 . B id s m ust be
re ce iv e d
c a te d in th e i n v i t a t i o n .
not
la te r
th a n th e tim e i n d i
(A t s u c h t i m e ,
th e o p e n in g d a t e ,
a l l b id s a r e opened i n p u b l i c i n th e P ro c u re m e n t D i v i s i o n ’ s
bid r o o m .)
4 . B id s m ust
be
i n re s p o n s e
to
in v ita tio n s
and
sh o u ld
not be q u a l i f i e d .
5 . When sam p les a r e r e q u i r e d ,
la te r
th a n th e h o u r d e s i g n a t e d
p r o p e r ly m arked f o r
th e y must be d e l i v e r e d n o t
f o r o p e n in g b i d s and m ust be
id e n tific a tio n .
(T h e P ro c u re m e n t D i v i
sio n r e c e i v e s h u n d red s o f sam p les and i f
marked,
th e y ca n n o t be
id e n tifie d
th e y a r e
w ith
im p r o p e r ly
th e .b i d s
t o w h ic h
th ey p e r t a i n . )
6 . F o rm a l b i d s , o n ce s u b m itte d , c a n n o t be w ith d raw n a f t e r
the tim e s e t
f o r o p e n in g o f
th e b i d s .
ca se o f co m m e rc ia l t r a n s a c t i o n s ,
H o w e v e r, a s
in
th e
in fo r m a l b id s --n o w u sed e x -
ten s i v e l y - -may be w ith d raw n a f t e r
th e o p e n in g tim e .
Bid and Performance Bond
The b id bond i s a
g u a r a n ty
by a u th o riz e d
s u re tie s
th a t
the b id d e r w i l l , w i th in th e tim e s p e c i f i e d
in h i s b i d , e n t e r
in to c o n t r a c t and g iv e p ro p e r bond f o r i t s
p e rfo rm a n ce .
le s s i t be d e te r m in e d
th a t
su ch a g u a ra n ty i s
p r o te c t th e i n t e r e s t o f th e U n ite d S t a t e s ,
be r e q u ir e d u n d er b id s
s ire d ,
its
th e
r e q u ir e d
to
cu m stan ces in
such
th a t
fu rn is h
1941,
a s u c c e s s f u l b id d e r w i l l n o t
a p e rfo rm a n c e bond e x c e p t “ in th o s e
is a d m in is tra tiv e ly
c o n n e c tio n
th e
f u rn is h in g o f a
th e S p e c i a l
in v ita tio n .
E f f e c t i v e November 6 ,
c a s e s w here i t
th e i n v i t a
When a b id bond i s d e
r e q u ir e m e n t w i l l be made a p a r t o f
C o n d itio n s o f
be
no b id bonds w i l l
s u b m itte d in r e s p o n s e t o
ti o n s o f th e P ro c u re m e n t D i v i s i o n .
Un
n e c e s s a ry to
in te re s ts
w ith
th e
o f th e
p e rfo rm a n c e
d e te rm in e d
p a rtic u la r
U n ite d
b on d . ”
t h a t th e c i r
In
p u rch ase
a re
re q u ire
th e
S ta te s
su ch
cases
th e
re
q uirem en t f o r th e bond w i l l be p a r t o f th e S p e c i a l C o n d itio n s
of th e
p a rtic u la r
must b e
s ig n e d
s u r e ty ,
or
two
in v ita tio n .
S uch b o n d s ,
by th e c o n t r a c t o r and a
or
more
in d iv id u a l
when
n e ce ssa ry ,
lic e n s e d
c o rp o ra te
s u re tie s .
T hey
in s u re
11
f a i t h f u l p e rfo rm a n c e o f a l l th e c o n d i t i o n s and p ro v is io n s of
':#sC
th e c o n t r a c t .
In l i e u - o f
s u re tie s
on
p e rfo rm a n c e
b o n d s , U n ite d S ta te s
bonds o r n o t e s may be d e p o s i t e d . C e r t i f i e d
a b le t o th e
T reasu rer
o f th e U n ite d S t a t e s
[thegrievs
c h e c k s drawn pay
a r e a l s o a c c e p t
;||l«
a b le .
Awards
A fte r
p ric e s
th e
b id s
h ave
been
opened
s tu d ie d
th e a d v e r t i s e d
The s u c c e s s f u l b id d e r i s
fo rw a rd e d
n o tifie d
the
fo r e x e c u tio n .
e s p e c ia lly i f
v o lv e d .
sp e c ific a
and a c o n t r a c t is
Announcem ent o f th e aw ard c a n n o t a lw a y s be
a te ly ,
and
t a b u l a t e d , th e aw ard i s made t o th e lo w e s t resp o n sib le
b id d e r w hose p r o d u c t c o n fo rm s t o
tio n s.
and
made
immedi
a number o f c o m p li c a te d f a c t o r s a re in
F o r in s ta n c e ,
when b id s a r e acco m p an ied by samples,
e x a m in a tio n and a n a l y s i s a r e r e q u i r e d t o e s t a b l i s h q u a lity .
Contracts
Two form s o f
sio n --th e
c o n tra c t
s h o rt-fo rm
p u r c h a s e s upon w h ich d e l i v e r y i s
tim e a f t e r
c o n tra c t,
Iit
a r e u se d by th e P ro cu re m e n t Divi-
c o n tra c t,
u s u a l l y u sed
f o r in d iv id u a l
t o be made in a v e r y short
th e e x e c u t i o n o f th e c o n t r a c t , and th e long-form
w h ich g e n e r a l l y
is
u se d
fo r
te rm c o n t r a c t s under
th e G e n e ra l S c h e d u l e o f S u p p l i e s .
The f i r s t
der s o f f e r .
ra tin g
is
m e r e ly
The l a t t e r
a n o tic e o f a c c e p ta n c e of
is
the bid
a more fo rm a l d o cu m en t, in corp o
th e b id s and th e te rm s o f th e c o n t r a c t .
Protest
I f any p r o s p e c t i v e b id d e r f e e l s a g g r i e v e d
12
jianyarticle
j ip, theI
i illatcorn
j «certains|
Tarytopre:
j i Forins
I bjacert,
j ¡red,Ther
I wedineit
I ;*contractor
I rationally,
at
any a ctio n
ta k e n by th e P ro c u re m e n t D i v i s i o n in c o n n e c t i o n w ith any of
th e s t e p s
pieiterii
i:division,
! iftttionte
I ¡sideune
]Itsareir
IIit somev
11,lebest
1;Ilittleva
in v o lv e d in th e p u r c h a s e o f an y com m odity, he may
* deliveries
I |ssofm
a
I iVanceo
p ro te s t
in
w ritin g
to
th e D i r e c t o r o f P r o c u r e m e n t,
s p e c if ic a lly h is o b je c tio n s
If
th e
g rie v a n ce
be
a t e l y upon r e c e i p t
of
t o su ch a c t i o n .
a g a in s t
term s o f th e i n v i t a t i o n ,
s ta tin g
th e
s p e c i f i c a t i o n s o r th e
th e p r o t e s t sh o u ld
be
made im m edi
th e i n v i t a t i o n and b e f o r e th e o p e n in g
o f b id s .
Inspection
B e f o r e m a t e r i a l may b e a c c e p t e d and p a id f o r b y th e P r o
curem ent D i v i s i o n , i t m ust be i n s p e c t e d f o r q u a l i t y and q u a n t i t y .
In s p e c tio n
te s ts
are
p a rtic u la rly
im p o r ta n t
when p u r
ch a se s a r e made u n d er th e c o m p e t i t i v e sy s te m o f b id d in g .
com m odities a r e i n v a r i a b l y u n ifo rm i n q u a l i t y .
ta b le t h a t
o th e r s .
a re
of
some
v e n d o rs
w ill
v a lu e
i s in e v i
d e l i v e r a b e t t e r q u a l i t y th a n
The b e s t s p e c i f i c a t i o n s
little
It
Few
w ith o u t
and
p ro c u re m e n t p r o c e d u r e s
in te llig e n t
and
th o ro u g h
in
s p e c tio n .
I f an y a r t i c l e s
workmanship,
are
found t o be d e f e c t i v e i n m a t e r i a l o r
th e G overnm ent
has
th e r i g h t t o r e j e c t
them o r
r e q u ire t h a t c o r r e c t i o n b e made.
For c e rta in
n ecessary
liv e r e d .
p anied by
la u n d e re d .
to
s p e c i f i c ite m s s o ld t o th e G overnm ent,
is
p r e s e n t c e r t i f i c a t i o n when t h e s e ite m s a r e d e
F o r in s ta n c e ,
a
it
c e rtific a te
d e l i v e r e d w ip in g r a g s m ust be acco m
to
th e
e ffe ct
t h a t th e y h a v e b een
The re q u ire m e n t f o r su ch a form o f c e r t i f i c a t i o n
i s c o v e re d in e i t h e r th e c o n t r a c t o r i n w r i t t e n i n s t r u c t i o n s
to th e c o n t r a c t o r .
O c c a s io n a lly ,
it
amine d e l i v e r i e s i n
is
th e
n e c e s s a r y t o send i n s p e c t o r s
fie ld
the p r o c e s s o f m a n u fa c tu re .
and a c c e p t a n c e
of
m a te ria ls
or
O rd in a rily ,
and
to e x
to i n s p e c t c o m m o d itie s i n
h o w ev er,
in s p e c tio n
a r t i c l e s i s made a f t e r d e
liv e ry .
13
Payments to Contractors
A fte r
th e
c o n t r a c t o r h a s made d e l i v e r y o f h i s m a te ria ls
and th e y h av e b e e n d u ly a c c e p t e d ,
c a te
to
o rd er
th e
a
G overnm ent
p ro p e rly
on e i t h e r
th e
shown
p ag e 1 5 ,
on
ag en cy
c e rtifie d
re g u la r
he sh o u ld su bm it in dupli
from
in v o ic e .
G overnm ent
o r on th e
th e c o n t r a c t o r
w ill
he
r e c e iv e d his
T h is may be submitted
v ou ch er
form (Form 10 3 4 ),
f i r m ’ s c o m m e rc ia l in v o ic e form.
U n n e c e s s a r y d e l a y i n paym ent o f h i s
if
w h ich
i n v o i c e c a n be avoided
become th o r o u g h ly f a m i l i a r
w ith
the
b illin g
i n s t r u c t i o n s on th e p u r c h a s e o r d e r and w ith th e terms
of
c o n t r a c t w h ich d e a l w ith
th e
v o ic e .
th e
r e q u i r e d c e r t i f i e d in
W ith a v ie w t o e x p e d i t i n g paym ent t o th e c o n tr a c t o r ,
th e f o l lo w in g s u g g e s t i o n s a r e o f f e r e d :
1.
M e rch a n d ise f o r w h ich th e c o n t r a c t o r i s
i n v o i c e m ust h a v e b een d e l i v e r e d ,
in s p e c te d ,
fu rn is h in g an
and a c c e p te d ;
2.
C o m p u ta tio n s on th e i n v o i c e must be c o r r e c t ;
3.
The name
of
th e
firm a s shown on th e in v o ic e must be
i d e n t i c a l w ith t h a t shown
i n d i v i d u a l s ig n in g
f o r th e
on
th e o r i g i n a l c o n t r a c t , and the
firm
m ust
in d ic a te
h is o f f ic ia l
title ;
4.
The f o llo w in g c e r t i f i c a t i o n
v o ic e s :
**I c e r t i f y
m ust be
t h a t th e ab o v e b i l l
g iv e n
on a l l in
i s c o r r e c t and ju s t;
t h a t paym ent t h e r e f o r h a s n o t b e e n r e c e i v e d ;
t h a t a l l s ta tu
t o r y re q u ir e m e n ts a s t o A m e rica n p r o d u c t i o n and la b o r stand
a rd s,
and
a ll
c o n d itio n s o f
p u rch ase
a p p l i c a b l e to
the
t r a n s a c t i o n s h av e b e e n c o m p lie d w i th ; and t h a t S t a t e o r lo c a l
s a le s
t a x e s a r e n o t in c lu d e d in th e am ounts b i l l e d . ”
When th e c o n t r a c t o r ’ s i n v o i c e h a s b e e n found t o be prop
e r l y e x e c u te d ,
a
ch eck
draw n
in h i s
f a v o r w i l l be w ritte n .
A ccom panying th e c h e c k w i l l be a c o p y o f th e i n v o i c e t o help
him t o i d e n t i f y th e c h e c k w ith th e o r i g i n a l c o n t r a c t .
ment f o r p a r t i a l d e l i v e r i e s
is
made o n ly when th e
(P ay
amount
and
c o n d itio n s w a r r a n t.)
If,
a ll
i n s u b m ittin g
p e rtin e n t
h is
v o u ch er,
r e q u ir e m e n t s ,
from th e P ro cu re m e n t D i v i s i o n .
14
he
may
th e
c o n t r a c t o r observes
exp ect
prompt
payment
®
***
m- m.
ST
ET
U. S . G O V ERN M E N T P R IN T IN G O F F IC E
sta n < ia ^ K > * m N o .i0 8 4 — Bev.
am
13
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— Mm
PUBLIC VOUCHER FOR PURCHASES AND SERVICES OTHER THAN PERSONAL
D. 0 . You. No. .
Comptroller Qeneral, U. S.
M ay 28, 1938
(Gen. Reg. No. 51, Supp. No. 71
G E N ER A L ACCOUN TING
O F F IC E P R E A U D IT
Certified for payment in the
sum of $ ._
£
...
. . . .
__
C o m p tro ller G e n e ra l o f th e
U n ited S ta te s
By
------------------------------------
Bu. You. No....
U. S . . . . . . . ___ _ _ _ _ _ _ _ _ _ _ _ ___ _ _ _ _ ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(Department, bureau, or establishment)
PAID BY
Voucher prepared a t _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ _ _ _ _ _
(Give place and date)
THE UNITED STATES, D r.,
To
__________________________
(Payee)
A d d ress _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Payee's Account N o . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
(For use of Paying Office)
TREASURY DEPAHTMEHT
Washington
Press Service
2 v - r y
POE RELEASE, «DBNIHO NEWSPAPERS,
*
November 18. 1941.
The Secretary of the Treasury announced last evening that the traders for
#200,000,000, or thereabouts, of 91-day Treasury Mils, to be dated November 19,
1941, and t© mature February 18, 1942, shieh sere offered on November 14, sere
opened at the Federal Reserve Baziks on November 17.
The details of this issue are as folios«;
Total applied for - #439,350,000
Total accepted
- 200,167,000
Range of accepted bids; (excepting three tenders totaling #385,000}
High
Im
Average price
- 99,980
- 99*922
- 99*935
Equivalent rate approximately 0.079 percent
*
*
*
0.309
•
•
*
•
0.258
*
(70 percent of the amount bid for at the los price sas accepted)
j
T R E A S U R Y DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, N o v e m b e r IS, 19 *1 1 .
11/17/41
The
Sec r e t a r y of the T r e a s u r y an n o u n c e d last
the tenders
bills,
1942,
Press Service
No. 2S-E*1
for $ 2 0 0 , 000, 000, or thereabouts,
to be d a t e d N o v ember
w h i c h were
The details
1 *1 , were opened at the
17.
on No v e m b e r
of this
of 91-day T r e a s u r y
1 9 , 19 *1 1 , and to mature Fe b r u a r y IS,
offered on No v e m b e r
Federal R e s e r v e Banks
evening that
issue are as follows:
Total a p p l i e d for - $ ^ 39 , 350,000
Total accept ed
200, 167,000
Range
of a c c e p t e d bias:
(excepting three tenders t o t a l i n g
$ 385 , 000 )
High
-* 9 9 » 9 $ 2 Equivalent
II
Low
- 99.922
Average
Il
Price - 99.935
percent
rate a p p r o ximatelv O .079 P ercent
II
ti
it
O .309
II
11
O . 25 S
it
of the amount b i d for at the l ow price was acc epted )
-0O 0-
ft TM'M 6'
D/A
■j m
TBf?£i£»s£
¿fr-
luamzE
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption as of November 1,
1941, under the quotas for the twelve months commencing October 1, 1941,
provided for in the Inter-American Coffee Agreement, proclaimed by the
President on April 15, 1941, as follows:
Country of Production
Revised Quota
(Pounds)
1/
Authorized for Entry
For Consumption
(Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,364,853,662
462,698,802
29,358,129
11,795,051
17,626,703
22,044,457
94,298,370
78,611,627
40,355,291
3,208,883
73,098,231
31,311,581
3,668,676
36,442,699
177,285,227
38,623,390
7,914,817
914,522
5,735,923
10,546,699
464,613
12,563,911
10,848,183
171,609
37,392
8,957
1,409,474
36,917
17,213,035
8,203,746
19,156,274
4,045,789
3,771,864
651,634
Non-signatory Countries:
British Empire, except
Aden and Canada
Kingdom of the Nether
lands and its possessions
Aden, Yemen, and Saudi
Arabia
Other countries not
signatories of the InterAmerican Coffee Agreement
13,470,988 2/ (Import quota filled)
1/ Quotas revised pursuant to the Inter-American Coffee Board’s resolutions
of July 1 and October 23, 1941.
2/ Quota revised pursuant to the Inter-American Coffee Board’s resolution
of August 2, 1941. This quota was filled at the opening hour of the
current quota period on October 1, 1941,
■oOo
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, November 1 9 ,
pr e s s S e r v i c e
No. 2 B - 5 5
19*11.
The B u r ea u o f Customs announced t o d a y p r e l i m i n a r y f i g u r e s
showing t h e q u a n t i t i e s o f c o f f e e a u t h o r i z e d f o r e n t r y f o r c o n
sumption as o f November 1 ,
19^-1, un der t h e q u o t a s f o r t h e t w e l v e
1 9 ^1 , p r o v i d e d f o r i n t h e I n t e r -
months commencing O c t o b e r 1 ,
American C o f f e e
Agreement,
April 1 5 , 19^1,
as f o l l o w s :
p r o c l a i m e d by t h e P r e s i d e n t
on 1
' Authorized f o r E n try
Country of P r o d u c t i o n
R e v i s e d Quota 1 / .. ''For Consumption
_________ _________________ ______________
(Pounds ) _____________ (Pounds )
Signatory C ou n tries:
B razil
Colombia
Costa R ica
Cuba
Dominican R e p u b l i c
Ec u ad o r
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
V e n e z u e la
853,662
6 9 8 ,8 0 2
2 9 , 358,129
11, 7 9 5 , 0 5 1
17, 6 2 6 , 7 0 3
22 , 0 4 4 ,457
1 7 7 ,285,227
3 8 ,62^ ,390
7 ,9 1 4 ,8 1 7
914,522
5 ,7 3 5 ,9 2 3
1 ° , 546,699
298,370
7s , 6 11,6 27
4o, 3 5 5 , 2 9 1
3 208,883
I J » 098,231
464,613
1 2 , 563,911
1 0 ,8 4 8 ,1 8 3
171,60 9
37,392
668,676
ì4 4 2 , 6 9 9
1 ,4 0 9 ,4 7 4
3 6,917
1 7 ,2 1 3 ,0 3 5
8, 203,746
19,1 5 6 ,2 7 4
4,045,789
3 ,7 7 1 ,8 6 4
651,6 34
9
ì
7%
71 3 1 1 , 5 8 1
N on-signatory C o u n trie s :
B r i t i s h E m pi re , e x c e p t
Aden and Canada
Kingdom o f t h e N e t h e r l a n d s
and i t s p o s s e s s i o n s
Aden, Yemen, and Saudi
Arabia
Ot he r c o u n t r i e s not
s i g n a t o r i e s of the I n t e r American C o f f e e Agreement
1 3 , 4 7 0 , 9 8 8 2/
1/
(Import quota f i l l e d )
Quotas r e v i s e d p u r s u a n t t o t h e I n t e r - A m e r i c a n C o f f e e B o a r d ' s
r e s o l u t i o n s o f J u l y 1 and O c t o b e r 2 3 ,' 1 9 ^1 .
2 / Quota r e v i s e d p u r s u a n t t o t h e I n t e r - A m e r i c a n C o f f e e B o a r d ' s
r e s o l u t i o n o f August 2 , 1 9 ^1 .
T h i s q u o t a was f i l l e d a t t h e
opening ho ur o f t h e c u r r e n t q u o t a p e r i o d on O c t o b e r 1 , 1 9 ^ 1 .
^oOo-
p ro v id e »
for periodic conference* among representative* ef t o two
Treasuries «ad t o » t o of Mewioe to ditto« monetary# finencial, t o
economic pretienc of tonal interest#
t o «liver purehaae agreewto 1« a «Oath to «oath i p m c m «
befrwstn t o United State« and heatso# «hereby the Waited States Treasury
undertakes to purchase monthly up tO' sia million ounces of newly^mined
iisxiean «liver*
t o »liver will be purchased dir«otly from t o t o t
#f hesieo on a b a « U «laollar to t o arraagtont« which were in effect
prlor to l«$ft#
t o «liver purchase« ar« wadi pursuant to t o previ»ito
of t o Oliver Purchase dot of l«d*
lo/ll/dl
fSSASliRY DUPAETMBS?
Washington
eow
Por ImnÈ&tbt Sei**** ¿tjt" 7^ o o T,fl/
ùletJUytI| M ;AfcW te 1«f ^
hf *
,
^
th* followiag $oint « t e i s m i la mad® by ih* S**r*tary of th*
Treaaury of ih* Uhitod Stai**, Ir. Story horg«athau, dr.» «ad by ih*
S*er«tary of ih* Tr*a*ury of Mexieo, Mr» Eduardo 3toà*r**t
th* tu* OoTimaani*, a* a pari of ih* ov*r-ali arraag*a*nt«
botween Mexico and il»» United Stai**, ha** io day entered lato a
atabillxation agreement aad a illnr purchaa* agreement.
Th*«*
a r r a a g a m i * are practieal evidene* of th* Good-Meighbor Foiley.
Theae agreement» are baaed upcm ih* prtmeipl* that th* malfare of ih*
1»* countrie* i* mutuai «ad ihai « o a m monetary and ecoaoisic probi*««
een b* aettled la a «pirli of friendly ©ooperation.
th* i*o
Treasuries
aro happy i* affina by ih*«* agreement« ih*ir b*ll«f in neighborly
cooperati*«, ai a il»* whan foro« rule» «o larga a pari of ih*
world*» eoonomy.
th* Stabilitati*» Agreement, «igned today by ih* Seeretary of
ih* Treasury of ih* tfcltod Stai*«, tho Secrotary of ih# Treasury of
Maxioo, and Ir« Antonio B»plno«a do lo* Monterò», ih* r«pr***ntati*e
of ih» Bank of taci**, proposo« io «tabili*« th* United States
dollar-fcexican p*«o rat* of «xeheng».
th* agreement provi dea
ihai up io #40 Bililon of ih* United Stai** Stabilisatien
Ptand vili b* u**d for ibi« purpoe*.
th* agreement ai**
T R E A S U R Y D EPARTMENT
Washington
CONFIDENTIAL:
F OR R E L E A S E AT 7:0 0 p.m., E.S.T.,
Wednesday, N o v e m b e r 19» 19^-1._____
Press Service
No. 23-56
The f o l l o w i n g joint statement
the T r e a s u r y of the U n i t e d States,
and by the
is made b y the Secretary of
Mr.
Henry Morgenthau,
S e c retary of the T r e a s u r y of Mexico,
Mr.
Jr.,
E d u ardo '
Suarez*.
The two G-overnments,
as a part
of the over-all
a rrangements b e t w e e n Mexico and the U n i t e d States,
today entered into a st a b i l i z a t i o n agreement
purchase
agreement.
These arra n g e m e n t s
evidence of the G o o d - N e i g h b o r Policy.
are b a s e d u p o n the p r i nciple that
countries
problems
and a silver
are practical
These agreements
the w e l fare of the two
is mutual and that common monet a r y and economic
can be settled in a spirit
The two Trea s u r i e s
of friendly cooperation.
are h a p p y to a f f i r m by these agreements
their b e l i e f in nei g h b o r l y cooperation,
force rules
so large a part
at a time when
of the w o r l d ’s economy.
The S t a b i l i z a t i o n Agreement,
signed today by the
Sec r e t a r y of the Tre a s u r y of the U n i t e d States,
Secretary of the T r e a s u r y of Mexico,
E s p i n o s a de los Monteros,
of Mexico,
proposes
and Mr.
the
Antonio
the r e p r e s e n t a t i v e of the B a n k
to stabilize the U n i t e d States do l l a r -
M e x i c a n peso rate of exchange.
up to
have
The agreement
m i l l i o n of the U n i t e d States
will be u s e d for this purpose,
for p e r iodic conferences
provides
that
St a b i l i z a t i o n Fund
The agreement
among r e p r e s e n t a t i v e s
also pro v i d e s
of the two
-
2-
Tre a s u r i e s and the B a n k of M e x i c o to discuss monetary,
financial,
The
and economic probl e m s of mutual
silver p u r chase agreement
interest.
is a m o n t h to m o n t h
arrangement b e t w e e n the U n i t e d States and Mexico,
whereby
the U n i t e d States T r e a s u r y u n d e r t a k e s to purchase m o n t h l y
up to six m i l l i o n ounces of n e w l y - m i n e d M e x i c a n silver.
The silver will be p u r c h a s e d d i r e c t l y f rom the B a n k of
Mexico
on a b a sis
in effect p r ior to
pursuant
similar to the a r r a n gements w h i c h w e r e
193 ^«
The silver p u r c hases are made
to the pro v i s i o n s of the Silver P u r c h a s e Act of
193^
- 0O 0-
- 3 ~
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is ma<le. as ordinary gain or loss.
Treasury Department Circular No* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue.
Copies of the circular may be obtained from any
Federal He serve Bank or Branch*
-
2-
Reserve *■"»« and Branches, following which public announcewent will be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or * n tenders, in whole or in part, and his action in any such respect shall
be final.
Ffcyment of accepted tenders at the prices offered must be made or com
pleted at the Federal Reserve Bank in cash or other iraediately available funds on
Kovesfeer 26, 1911, provided, however, any qualified depositary will be permitted to
sake payment by credit for Treasury bills allotted to it for itself and its custoortre up to any amount for which it shall be qualified In excess of existing de
posits when so notified by the Federal Reserve Bank of its district.
yhe
*»*?■»»- derived from Treasury bills, whether interest or gain
from the sale or ©they disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Fbderal tax Acts now or here-»
after enacted*
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
taxing authority.
For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States shall be considered
to be interest.
Under Sections 42 and 117 (a) (1) of the Internal Severn»
Code, as amended by Section 115 of the Revenue Act of 1941» the amount of
discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance coiir*
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
<ii5$
ASæïfSx
TREASURY DEPARTMENT
Washington
{¡¡5SC1
ItiM^
rr
z- r - 5
7
FOR RELEASE, MORNING NEWSPAPERS,
Friday, November 21, 194-1_____ •
Iti)1*!
P'f
IP1
ider
j p UP
l i t ii
at
The Secretary of the treasury, "by this nubile notice, invites tenders
fnr ^ 200,000,000
, or thereabouts, o f __ 91 -day Treasury bills, to be issued
on a discount basis under competitive bidding.
The bills of this series will
expr
be dated November 26, 194-1
• and will mature
February 2 5 > 1 9 4*~---------
when the face amount will be payable without interest.
ilal enve
They will be issued in
LwhpR
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve hanks and Branches up to thd
closing hour, two o lclock p. m., Eastern Standard time,
Monday, November 24, l?4k
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
|
Fractions 1
to nil
Secreta
ipt or r
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
ite
Fede
liable f
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment secunties.
lunedi
¡Is Fede)
Siedd
reasur
j î
Tenders from others must be accompanied by payment of 10 percent of the
¡ting de
its iis t
face amount of Treasury bills applied for, unless the tenders are accompanied by :
The
an express guaranty of payment by a.n incorporated bank or trust company.
«“jei
Immediately after the closing hour, tenders will be opened at the Federa| ¡Positior
185g)
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
F r i d a y , November 2 1 , 1 9 ^ 1 . _______
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b l i c n o t i c e , i n
v i t e s t e n d e r s f o r $ 2 0 0 , 0 0 0 , 0 0 0 , o r t h e r e a b o u t s , of 9 1 - d a y T r e a s u r y
b i l l s , t o be i s s u e d on a d i s c o u n t b a s i s under c o m p e t i t i v e b i d d i n g .
The b i l l s o f t h i s s e r i e s w i l l be d a t e d November 2 6 , 1 9 ^ 1 , ana w i l l
ma tur e F e b r u a r y 2 5 ; 1 9 ^ 2 , when t h e f a c e amount w i l l be p a y a b l e
without i n t e r e s t .
They w i l l be i s s u e d i n b e a r e r form o n l y , and in
d e n o m in a t io n s o f $ 1 , 0 0 0 , $ 5 , 0 0 0 , $ 1 0 , 0 0 0 , $ 1 0 0 , 0 0 0 , $ 5 0 0 , 0 0 0 , and
$ 1 ,0 0 0 ,0 0 0 (m aturity v a lu e ).
T e n d e r s w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks and
B r a n c h e s up t o t h e c l o s i n g h o u r , two o ’ c l o c k p . m., E a s t e r n
S t a n d a r d t i m e , Monday, November
T en d er s w i l l n o t be
r e c e i v e d a t t h e T r e a s u r y D ep art m en t, W a s h in g to n .
Each te n d e r
must be f o r an even m u l t i p l e o f $ 1 , 0 0 0 , and t h e p r i c e o f f e r e d
must be e x p r e s s e d on t h e b a s i s of 1 0 0 , w i t h n o t more t h a n t h r e e
decim als, e. g . , 9 9 . 9 2 5 .
F r a c t i o n s may n o t be u s e d .
I t i s urged
t h a t t e n d e r s be made on t h e p r i n t e d forms and f o r w a r d e d i n t h e
s p e c i a l e n v e l o p e s which w i l l be s u p p l i e d by F e d e r a l R e s e r v e Banks
o r B r a n c h e s on a p p l i c a t i o n t h e r e f o r .
2b, Ijbl.
T e n d e rs w i l l be r e c e i v e d w i t h o u t d e p o s i t from i n c o r p o r a t e d
banks and t r u s t companies and from r e s p o n s i b l e and r e c o g n i z e d
d e a l e r s in investment s e c u r i t i e s .
T en d er s from o t h e r s must be
accomp anied by payment o f 1 0 p e r c e n t o f t h e f a c e amount o f
T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e t e n d e r s a r e ac comp ani ed
by an e x p r e s s g u a r a n t y o f payment by an i n c o r p o r a t e d bank or
t r u s t company,
I m m e d i a t e l y a f t e r t h e c l o s i n g h o u r , t e n d e r s w i l l be opened .
a t t h e F e d e r a l R e s e r v e Banks and B r a n c h e s , f o l l o w i n g which p u b l i c
announcement w i l l be made by t h e S e c r e t a r y of t h e T r e a s u r y o f t h e
amount and p r i c e r a n g e of a c c e p t e d b i d s r Those s u b m i t t i n g
t e n d e r s w i l l be a d v i s e d o f t h e a c c e p t a n c e o r r e j e c t i o n t h e r e o f .
The S e c r e t a r y of t h e T r e a s u r y e x p r e s s l y r e s e r v e s t h e r i g h t t o
a c c e p t o r r e j e c t any o r a l l t e n d e r s , i n whole or i n p a r t , and
h i s a c t i o n i n any suc h r e s p e c t s h a l l be f i n a l .
Payment of
a c c e p t e d t e n d e r s a t t h e p r i c e s o f f e r e d must be made o r c o m p l e t e d
a t t h e F e d e r a l R e s e r v e Bank i n c a s h o r o t h e r im m e d i a t e l y
a v a i l a b l e funds on November 2 6 , 1 9 ^ 1 , p r o v i d e d , however, any
q u a l i f i e d d e p o s i t a r y w i l l be p e r m i t t e d t o make payment by c r e d i t
f o r T r e a s u r y b i l l s a l l o t t e d t o i t f o r i t s e l f and i t s c u s t o m e r s
up t o any amount f o r which i t s h a l l be q u a l i f i e d i n e x c e s s o f
e x i s t i n g d e p o s i t s xvhen so n o t i f i e d by t h e F e d e r a l R e s e r v e Bank
of i t s d i s t r i c t .
The income d e r i v e d from T r e a s u r y b i l l s , w h et he r i n t e r e s t o r
g a i n from t h e s a l e o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l n o t
have any e x e m p t i o n , a s s u c h , and l o s s from t h e s a l e o r o t h e r
d i s p o s i t i o n o f T r e a s u r y b i l l s s h a l l no t have any s p e c i a l t r e a t
ment, as s u c h , un de r F e d e r a l t a x A c t s now o r h e r e a f t e r e n a c t e d .
22-57
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The b i l l s s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t , or
o t h e r e x c i s e t a x e s , w h e th e r F e d e r a l o r S t a t e , but s h a l l be exempt
from a l l t a x a t i o n now o r h e r e a f t e r imposed on t h e p r i n c i p a l or
i n t e r e s t t h e r e o f by any S t a t e , o r any o f t h e p o s s e s s i o n s o f t h e
U n i t e d S t a t e s , o r by any l o c a l t a x i n g a u t h o r i t y .
For purposes
of t a x a t i o n t h e amount o f d i s c o u n t a t which T r e a s u r y b i l l s a r e
o r i g i n a l l y s o l d by t h e U n i t e d S t a t e s s h a l l be c o n s i d e r e d t o be
in terest.
Under S e c t i o n s
and 1 1 7 ( a ) ( l ) o f t h e I n t e r n a l
Revenue Code, as amended by S e c t i o n 1 1 5 of t h e Revenue Act of
191+1 , t h e amount o f d i s c o u n t a t which b i l l s i s s u e d h e r e u n d e r a r e
s o l d s h a l l n o t be c o n s i d e r e d t o a c c r u e u n t i l such b i l l s s h a l l be
s o l d , redeemed o r o t h e r w i s e d i s p o s e d o f , and su ch b i l l s a r e
e x c l u d e d from c o n s i d e r a t i o n as c a p i t a l a s s e t s .
A c co rd in g ly , the
owner o f T r e a s u r y b i l l s ( o t h e r th a n l i f e i n s u r a n c e c o m p a n i e s )
i s s u e d h e r e u n d e r need i n c l u d e i n h i s income t a x r e t u r n o n l y t h e
d i f f e r e n c e be tw een t h e p r i c e p a i d f o r suc h b i l l s , w h e th e r on
o r i g i n a l i s s u e o r on s ub s equ en t p u r c h a s e , and t h e amount a c t u a l l y
r e c e i v e d e i t h e r upon s a l e o r r e d e m p t i o n a t m a t u r i t y d u r i n g t h e
t a x a b l e y e a r f o r which t h e r e t u r n i s made, as o r d i n a r y g a i n o r
loss.
kZ
T r e a s u r y Department C i r c u l a r No. ¿+18, as amended, and
t h i s n o t i c e , p r e s c r i b e t h e te r m s o f t h e T r e a s u r y b i l l s and
go ve rn t h e c o n d i t i o n s of t h e i r i s s u e .
C op ies of t h e c i r c u l a r
may be o b t a i n e d from any F e d e r a l R e s e r v e Bank o r B r a n c h .
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A sheet of instructions is attached to the Form and contains the
information necessary for the proper preparation of the return.
The new Form 1040A, provi4ed i^oa^n the Revenue Act of 1941 for
incomes of #3,000 or less from salary, wages, compensation for personal
service, dividends, in terest, rent, annuities and royalties, is even
more simple than the new Form 1040. A table on the reverse side of
this Form shows the amount of tax on increasing amounts of gross income
after the proper allowance of #400 for each dependent, i f any.
In the case of this simplified Form 1040A, the status of a person
on the la st day of the taxable year is the governing factor in deter
mining the exemption level as well as the credit for dependents. On
Form 1040 the personal exemption and credit for dependents are prorated
according to the portion of the year during which the taxpayer was
married or head of a family or had dependents.
In the case of the new Form 1040A the tax is the same for each
block of gross inc ome and the taxpayer need only ascertain in which
block his gross income (less the allowance for dependents) falls to
determine his tax. A fla t reduction of 10 percent has been made in
arriving at the amount of tax shown in the table for deductions such
as charitable contributions and taxes paid, so that the taxpayer who
uses this Form does not l i s t these but gets an automatic deduction of
10 percent.
#25
Use of this simplified Form 1040A is optional for taxpayers whose
income is wholly from the specified sources and does not exceed #3 , 000.
Those who prefer may use Form 1040 though their income is less than
#3 , 000 .
TREASURY DEPARTMENT
Washington
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Press Service
No.
FOR RELEASE, MORNING NEWSPAPERS,
Sunday, November 23, 194.1______
Revised Form 1040 for 1941 income tax returns was made public
today by the Treasury Department.
/ ,
All individuals f i l i n g returns who do not elect t o use simplified
Form 1040A .provided,
the Revenue Act of 1941 forj^comes of
$3,000 or less will make their reports on the new Form 1040 regardless
of the size or dource of their incomes.
%
Form 1040 also has been simplified this year so that persons
whose income is entirely from salaries and other compensation for
personal service, dividends, in terest, rents, royalties and annuities
may f i l l in pages one and two of the new Form and disregard the
remaining two pages. The Form is so printed that in such cases
the taxpayer may tear off the seeond sheet of the Form on which pages
three and four are printed and file only the fir s t sheet which
contains pages one and two.
Taxpayers who have income or losses from other sources, such
as from business or sale or exchange of capital assets, will f ill
out the entire four pages of the Form.
Printing of 65,000,000 copies of the Form is being rushed so
they will be in the hands of Collectors of Internal Revenue by
January 1 , 1942. The Bureau of Internal Revenue estimates that
10.000. 000 or more taxpayers will use Form 1040 this year and some
12.000. 000 taxpayers the simplified Form 1040A.
The old Form 1040 was used by a ll persons whose gross income was
more than $5,000, but under the present system a ll taxpayers who are
not eligible or do not elect to use Form 1040A will use Form 1040,
-¿3. gross income is equal to or exceeds the exemption of $750 for a
single person and $1,5 0 0 for a married person.
A large majority of the taxpayers who formerly used Form 1040
will find the revised Form much more simple, Bureau of Internal
Revenue o fficials pointed out. I f their income is wholly from
compensation for personal services and from investments, they will
be able to skip items 7, 8, 9 and 10 on page one and disregard
pages three and four of the Form.
%
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INSTRUCTIONS FOR FORM 1040, UNITED STATES INDIVIDUAL INCOME TAX RETURN
(R e f e r e n c e ? a r e to th e In te r n a l R e v e n u e C o d e , u n le s s o th e rw is e n o te d )
1941
GENERAL INSTRUCTIONS
A. W H O .M U ST M A K E A R E T U R N .—E very citizen and resident
o f th e United S ta te s having during th e taxable year gross income (in
come derived from any source w hatever, unless exem pt from ta x by
law) in an am ount specified below, regardless o f the amount o f net income,
shall m ake a return if :
( 1 ) Single fo r entire year, or married and not living with husband or
wife fo r any part o f the taxable year. I f having a gross income of $750
o r over.
(2) M arried and living with husband or wife fo r the entire taxable year.
I f each has income and th eir combined gross income is $1,500 or over,
they must each m ake a return or file a jo in t return. I f only one has
income and his gross income is $1,500 or over, only th a t one is required
to m ake a return.
(3) M arried and living with husband or wife fo r only part o f the taxable
year. I f each has income and th eir combined gross income is $1,500 or
over, or equal to , or in excess of, th eir to ta l personal exem ption (not
including credit as head of a fam ily or for dependents) , they m ust each
m ake a return or file a jo in t return. I f only one has income and his
gross income is $1,500 or over, or equal to , or in excess of, his personal
exem ption (not including credit as head of a fam ily or fo r dependents),
only th a t one is required to m ake a return. (See Specific Instruction
2 0 as to personal exem ption,)
J o i n t r e t u r n . — M ay be filed by husband and wife only if they are
(1) both citizens or residents of the United S ta tes and (2) living together
a t th e end of th e taxable year. A jo in t return is permissible even
though one has no gross income. In a jo in t return the aggregate
income, deductions, and credits are computed as though husband and
wife were one person.
D e c e a s e d i n d i v i d u a l s . —R etu rn required on Form 1040 or 1040A if
gross income to date of death is $750 or over, if single, or married and
n o t living w ith spouse for any part of the taxable year, or equal to, or in
excess of, credit for personal exemption (not including credit as head of
a family or for dependents), if m arried and living with spousé for all or
any p art of th e taxable year. T h e return for a decedent shall include
a ll item s of income and deductions accrued up to the date of death,
regardless of the fa ct th a t th e decedent m ay have kept his books on a
cash basis or k ep t no books.
B . F O R M O F R E T U R N .—Citizens and resident alien individuals
use Form 1040, except th a t those whose gross income is not more than
$ 3 ,0 0 0 and consists wholly of salaries, wages, other compensation for
personal services, dividends, interest, rent, annuities, or royalties may
use optional Form 1040A. Nonresident aliens use Form 1040B or
1040N B . Fiduciaries fo resta tes and tru sts use Form 1041.
C. F IL IN G O F R E T U R N S AND P A Y M E N T O F T A X .— F ile on or
before. 15th day of 3d m onth following close of taxable year w ith
collector for th e d istrict in which th e taxpayer has his legal residence
o r principal place of business. I f th e taxpayer has no legal residence
o r place of business in United States, file w ith collector a t B altim ore,
M d. T h e taxpayer’s home address m ust be given and a perm anent
business address m ay be added. P ay in cash a t collector’s office or
by check or money order payable to “ Collector of In ternal Revenue.”
P ay in full w ith return or in four equal installm ents, on or before th e
15th day of the 3 d, 6 th, 9 th, and 12 th m onth from clpse of taxable year.
D . P E N A L T IE S .— Severe penalties are imposed for failing to file a
required return, for late filing, and for filing a false or fraudulent return.
**age i
1941
E . A F F I D A V I T S . —R etu rn
m ust be sworn to by taxpayer or his
agent. R etu rn m ay be made by agent if taxpayer (1) is too ill to
m ake i t or (2) is absent from United States for 60 days before due .4
date. Power of attorney on Form 935 or 936 (husband and wife) 1
m ust accom pany return made by agent. Person (other than tax- j
payer) preparing return m ust execute affidavit on page 4. Return i
m ay be sworn to before any collector, deputy collector, or internal i
revenue agent (without charge), or oth er person authorized by law !
to adm inister oaths for general purposes, except taxpayer’s agent. :
F . R E C E I V E D O R A C C R U E D I N C O M E . — I f books are kept on J
accrual basis, report all income accrued, even though n o t received, 1
and expenses incurred even though n o t paid. I f books are not kept I
on accrual basis, or if no books are kept, report all income actually or
constructively received, and all expenses paid.
G . I T E M S E X E M P T F R O M T A X . — As to item s of income exempt
from tax other than those listed below, see sections 2 2 (b) and 116.
1. In terest on governm ental obligations is exem pt to the extent u
indicated in Schedule A.
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2. P r o c e e d s o f i n s u r a n c e p o l i c i e s . —T he proceeds of life insurance I
policies, paid by reason of the death of the insured, are exem pt. If any I
p art of the proceeds is held by the insurer under an agreem ent to pay
interest, the interest is taxable. Amounts received under a life insur
ance or endowment policy, n o t payable by reason of the death of the j
insured, are not taxable until th e aggregate of the am ounts received I
exceeds the premiums or consideration paid for the policy. See Specific J
Instruction 6 as to taxation of annuities.
3 . M i s c e l l a n e o u s i t e m s w h o lly e x e m p t f r o m t a x :
(a) G ifts (not received as a consideration for service rendered) and
money and property acquired by bequest, devise, or inheritance (but
income therefrom is ta x a b le);
(b) Amounts received through accident or health insurance or under
workmen’s compensation acts, as compensation for personal injuries or
sickness, plus th e amount of any damages received, whether by suitor
agreem ent, on account of such injuries or sickness;
(c) T h e rental value of a dwelling house and appurtenances thereof
furnished to a m inister of th e gospel as p art of his compensation;
(d) Pensions and compensation received by veterans from the United
States and pensions received from the United S tates by th e family of a
veteran, for services rendered by th e veteran in tim e of w ar; and
(e) In terest on adjusted service bonds and interest credited to postal
savings accounts deposited prior to M arch 1, 1941.
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H . D E P R E C IA T IO N AND D E P L E T IO N .—A reasonable allowance for exhaustion, wear I
and tear, including obsolescence, of property used in trade or business m ay be deducted, J j
based on cost if acquired b y purchase after Febru ary 28,1913. I f acquired before March 1,»
1913, or otherwise th an b y purchase, see section 114.
1 j
For depletion deduction, see sections 23 (m) and 114 and Regulations 103.
I . IN F O R M A T IO N A T S O U R C E .—E v ery person m aking paym ents of (1) interrat, rents, I ;
commissions, or other fixed or determinable income of $750 or more during the. calendar year, |
1941 to an individual, a partnership, or a fiduciary, or (2) salary or wages of $750 or more toaVJ j
single person or $1,500 or more to a married person shall make a return on Forms 1096 and 1099. u
J . S T O C K O W N E D IN F O R E IG N C O R P O R A T IO N S AND P E R S O N A L HOLDING 1
C O M P A N IE S .—If a t any tim e during th e year you owned directly or indirectly stock of a
foreign corporation, or a personal holding company (section 501), attach a statement showing j
name and address of each such company and total number of shares of each class of outstand- ;
ing stock owned. I f a t any tim e during th e year you owned stock in a forefen personal
holding company (section 331), include m income as a dividend the amount required by j
section 337, and if you owned 5 percent or more in value of the outstanding stock of such com- j
pany, attach a statem ent giving in detail the information required b y section 337 (d).
SPECIFIC INSTRUCTIONS
( N u m b e r e d to c o r r e s p o n d w ith i te m n u m b e r s o n p a g e 1 o f r e t u r n )
1. SA L A R IE S, E T C .—Include compensation received as an officer or
employee of a S ta te or political subdivision or any agency or instru
m entality thereof.
2 . D IV ID E N D S .—E n ter total of all taxable dividends. E n te r in
Schedule A dividends on share accounts in Federal savings and loan
associations.
5 . 'R E N T S AND R O Y A L T IE S .—Include rent received in property
o r crops. Report, crops received bn crop-share basis in year in which
disposed of (unless return is made on accrual basis).
6 . A N N U IT IE S .— Amounts received as an annuity under an
annuity or endowment co ntract shall be included in gross income to
th e exten t of 3 percent of the aggregate premiums or consideration
paid for such annuity. I f the aggregate of th e am ounts received and
excluded from gross income equals the aggregate premiums or consid
eration paid fo r such annuity, the entire am ount thereafter received
m ust be included in gross income.
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the benefit of any private shareholder or individual, and no substantial part of the activities
of which is carrying on propaganda, or otherwise attem pting, to influence legislation;
(6) T h e U nited States, any State, Territory, or any political subdivision thereof, or the
D istrict of Colum bia, or any possession of the U nited States, for exclusively public purposes;
(c) T h e special fund for vocational rehabilitation authorized b y section 12 of the World
W ar Veterans’ A ct, 1924;
(d) Posts or organizations of war veterans, or auxiliary units or societies of any such posts
or organizations, if. such posts, organizations, units, or societies are organized in the United
States or any of its possessions, and if no part of their net earnings inures to the benefit 01
any private shareholder or individual; or
(«) A domestic fraternal society, order, or association, operating under the lodge system,
b u t only if such contributions or gifts are to be used exclusively for religious, charitable, scien
tific, literary, or educational purposes, or for the prevention of cruelty to children or animals.
12. IN T E R E S T . —E n ter interest on personal indebtedness as dis
tinguished’ from business indebtedness (which should be entered to
Schedules B and H ). F o r lim itations on deductions for unpaid I
"i
expenses and interest, see section 24 (c).
13. T A X E S .—E n te r taxes imposed on you and paid or accruedl
during th e taxable year, except taxes entered in Schedules B and H. 1
Do n o t include taxes assessed against local benefits, Federal income 1
F O R IN S T R U C T IO N S 7, 8, AND 9,
taxes or estate, inheritance, legacy, succession, gift taxes, taxes |
S E E P A G E 2, S E C O N D C O L U M N .
imposed on your interest as shareholder of a corporation which are I
paid by the corporation w ithout reim bursem ent from you, nor incoraej
11.
C O N T R IB U T IO N S P A ID .—E n ter (not to exceed 15 percent oftaxes claimed as a credit in item 31. Federal social security and em I
your net income computed w ithout the benefit of this deduction)
ploym ent taxes paid by or for an employee are not deductible by the .
contribu tions or gifts, paym ent o f which was made w ithin the year
employee.
to or for th e use of—
14. L O S S E S .—E n te r property losses (not claimed in Schedule H).|
(a) A corporation, tru st, or com m unity chest, fund, or foundation, created or organized in
from fire, storm , shipwreck, or other casualty, or from theft, not co®i
the U nited S tates or in any possession thereof or under the law of the U nited States or of
pensated for by insurance or otherwise. Explain in Schedule C, givtoij
an y S tate or T erritory or of any possession of the U nited States, organized and operated
description of property, d ate acquired, cost, subsequent improvements,
exclusively for religious, charitable, scientific, literary, or educational purposes, or for the
depreciation allowable, insurance, salvage value, and deductible loss.
prevention of cruelty to children or animals, no part of the net earnings of which inures to
18— 24246
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15. BAD D EBTS.—E n ter bad debts other than those claimed in
Schedule H. Show in Schedule C : (a) of w hat the debts consisted;
(ft) name and family relationship, if any, of debtor; (c) when created;
(d) when due; (e) efforts made to collect; and (/) how determined to
be worthless. Enter in Schedule F losses from corporate securities
with interest coupons or in registered form ascertained to be worthless
and charged off within the year, and which are capital assets.
16. OTHER D ED U CTIO N S.—E n ter other authorized deductions,
including net operating loss deduction allowed by section 23 (s).
■Every taxpayer claiming a deduction due to a net operating loss for
l the preceding taxable year or years shall file w ith his return the stateIm e n t required by section 19.1 2 2-1, R egulations 103.
I Do not deduct losses in transactions not connected with your trade
lo r business or not entered into for profit. Losses from wagering
■transactions are allowable to the exten t of gains therefrom .
20,21. CREDIT FO R P ER SO N A L E X E M P T IO N AND D E P E N D
| ENTS.—A single person, or a m arried person not living w ith spouse,
I is allowed a personal exemption of $750. A person who, during the
[ entire taxable year, was the head of a fam ily or was m arried and living
[ with spouse, is allowed an exemption of $1,500. On separate returns,
the personal exemption m ay be taken by either husband or wife or
| divided between them in any proportion.
A “head of a fam ily" is one who supports in one household one or
more dependent individuals closely connected w ith him by blood
relationship, relationship by m arriage, or by adoption, and whose right
to exercise family control is based upon some m oral or legal obligation.
A credit of $400 is allowed for each person (other than husband or
wife) under 18 years of age, or incapable of self-support because men
tally or physically defective, whose chief support was received from
the taxpayer. If taxpayer is head of a fam ily only because of depend
ents for whom he would be entitled to credit under preceding sentence,
$400 credit is allowed for each of such dependents except one.
j. If taxpayer’s status, with respect to personal exem ption and credit
for dependents, changed during the taxable year, such exemption and
credit shall be apportioned according to the num ber of m onths before
and after such change. A fractional p art of a m onth is disregarded
unless it exceeds half a m onth, when it shall be considered a m onth.
24. EARNED IN CO M E C R E D IT .— “ Earned incom e" means wages,
salaries, professional fees, and other am ounts received as compensation
for personal services actually rendered. W here a taxpayer is engaged
in a trade or business in which both personal services and capital are
material income-producing factors, a reasonable allowance as compen
sation for the personal services actually rendered by th e taxpayer, not
in excess of 20 percent of his share of th e net profits of such trade or
business, shall be considered as earned income. “ Earned net income”
means the excess of the am ount of the earned income over the sum of
the “earned income deductions,” which are the ordinary and necessary
expenses properly chargeable against earned income.
27. SURTAX.—The following table shows th e surtax due for the
taxable year upon certain specified am ounts of surtax net income.
SU R TA X T A BLE
H the surtax net income iss
If
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The surtax shall be:
Not over $2,000---------------------------------------------- 6% of the surtax net; income.
Over $2,000 but not over $4,000..............................$120, plus 9% of excess over $2,000.
Over $4,000 but not over $6,000— -------------------$300, plus 13% of excess over $4,000.
Over $6,000 but not over $8,000.— ----------------- $560, plus 17% of excess over $6,000.
Over $8,000 but not over $10,000..---------------------$900, plus 21% of excess over $8,000.
Over $10,000 but not over $12,000.------------------- $1,320, plus 25% of excess over $10,000.
Over $12,000 but not over $14,000---------------------$1,820, plus 29% of excess over $12,000.
Over $14,000 but not over $16,000.------------------- $2,400, plus 32% of excess over $14,000.
Over $16,000 but not over $18,000............................$3,040, plus 35% of excess over $16,000.
Over $18,000 but not over $20,000.------------------- $3,740, plus 38% of excess over $18,000.
Over $20,000 but not over $22,000............................$4,500, plus 41% of excess over $20,000.
Over $22,000 but not over $26,000---------------------$5,320, plus 44% of excess over $22,000.
Over $26,000 but not over $32,000---------------------$7,080, plus 47% of excess over $26,000.
Over $32,000 but not over $38,000---------------------$9,900, pips 50% of excess over $32,000.
Over $38,000 but not over $44,000---------------------$12,900, plus 53% of excess over $38,000.
Over $44,000 but not over $50,000-------------------- $16/180, plus 55% of excess over $44,000.
Over $50,000 but not over $60,000.......................... $19,380, plus 57% of excess over $50,000.
Over $60,000 but not over $70,000-------------------- $25,080, plus 59% of excess over $60,000.
Over $70,000 but not over $80,000-------------------- $30,980, plus 61% of excess over $70,000.
Over $80,000 but not over $90,000.......................... $37,080, plus 63% of excess over $80,000.
Over $90,000 but not over $100,000.........................$43,380, plus 64% of excess over $90,000.
Over $100,000 but not over $150,000.-----------— $49,780, plus 65% of excess over $100,000.
Over $150,000 but not over $200,000...................... $82,280, plus 66% of excess over $150,000.
Over $200,000 but not over $250,000....................... $115,280, plus 67% of excess over $200,000.
Over $250,000 but not over $300,000----------------- $148,780, plus 69% of excess over $250,000.
Over $300,000 but not over $400,000------------------$183,280, plus 71% of excess over $300,000.
Over $400,000 but not over $500,000----------------- $254,280, plus 72% of excess over $400,000.
over $500,000 but not over $750,000----------------- $326,280, plus 73% of excess over $500,000.
pver $750,000 but not over $1,000,000.--------------$508,780, plus 74% of excess over $750,000.
I ™ poo0'000 bu‘ not over $2,000,000.----------- $693,780, plus 75% of excess over $1,000,000.
over $2,000,000 but not over $5,000,000.----------- $1,443,780, plus 76% of excess over $2,000,000.
er $5,000’000---------------------------------------------- $3,723,780, plus 77% of excess over $5,000,000.
1 J h lNC0M,E TAX PAID AT S O U R C E .-E n t e r 2 percent of interest
I Donas on which Federal income ta x was paid by debtor corporation.
FOREIGN TAX C R E D IT .— I f credit is claimed for taxes paid to a
i iT;ei.gh country or possession of U nited S ta tes, subm it Form 1116 and
i «Halw f<£ suc1} Paym ents. I f credit is claimed fo r taxes accrued,
I tacii to Form 1116 certified copy of return on which ta x was based.
if U.
IN S T R U C T IO N S B E L O W N E E D B E C O N S ID E R E D O N LY I P E N T R I E S
A R E M A D E IN I T E M S 7, 8, AND 9, P A G E 1 O F R E T U R N .
7.
G A IN S AND L O S S E S F R O M SA L E S O R EXC H A N G ES O F
CAPITAL A S S E T S AND O T H E R P R O P E R T Y .—R eport details in
Schedules F and G.
“ Capital a s s e ts " d efined.—T he term “ capital assets" means prop
erty held by the taxpayer (whether or not connected w ith his trade
or business), bu t not stock in trade or other property of a kind which
would properly be included in his inventory if on hand a t the close of
the taxable year, or property held by the. taxpayer prim arily for sale to
custom ers in the ordinary course of his trade or business, or property
used in the trade or business of a character which is su bject to the allow
ance for depreciation provided in section 23 (1), or an obligation of the
United Sta tes or any of its possessions, or of a S ta te or T erritory, or
any political subdivision thereof, or of the D istrict of Columbia, is*sued
on or after M arch 1 , 1941, on a discount basis and payable w ithout
interest a t a fixed m atu rity date not exceeding one year from the date
of issue.
Description of property.—S tate following facts: (a) F o r real estate,
location and description of land and improvem ents; (ft) for bonds or
other evidences of indebtedness, nam e of issuing corporation, particular
issue, denom ination and am ount; and (c) for stocks, nam e of corpora
tion, class of stock, number of shares, and capital changes affecting
basis (including nontaxable distributions).
B asis. -In determining G A IN in case of property acquired before
M arch 1 , 1913, use the cost or the fair m arket value as of M arch 1,
1913, adjusted as provided in section 113 (b), whichever is greater, but
in determining LO SS use cost so adjusted. I f the property was ac
quired after February 28, 1913, use cost, except as otherwise provided
in section 113.
L osses on securities becoming w orthless.—I f ( 1) shares of stock
become worthless during the year or (2 ) corporate securities with
interest coupons or in registered form are ascertained to be worthless
and charged off during the year, and are capital assets, the loss there
from shall be considered as from the sale or exchange of capital assets
as of th e last day of such taxable year.
Classification of capital gains and lo sse s.—T he phrase “sh ort-term "
applies to gains and losses from the sale or exchange of capital assets
held for 18 m onths or less; th e phrase “long-term " to capital assets
held for m ore than 18 m onths.
Lim itation on short-term capital lo sse s.—Short-term capital losses
shall be allowed only to th e extent of short-term capital gains. How
ever, any n et short-term capital loss (not in excess of the net income
for the year involved) m ay be carried over in the succeeding year and
applied against the short-term capital gains not already offset by short
term capital losses in such year. T h e carry-over is restricted to 1 year.
Alternative ta x .—In the case of a net long-term capital gain or loss,
an alternative tax m ay be imposed in lieu of the norm al tax and surtax
imposed upon net income. (See Com putation of A lternative T ax , Sched
ule F .) In calculating the alternative ta x in the case of a long-term
capital loss, the base (1) for computing th e 15 percent lim itation with
respect to the deduction for charitable contributions is th e “ ordinary
net income” as shown in line 3, Com putation of A lternative T a x ,
Schedule F , increased by item 11, page 1, and (2) for computing the
earned income credit is th e “ordinary net incom e" as adjusted for the
charitable contributions deduction.
‘‘Wusih sales” losses.— Loss from sale or other disposition of stock or securities cannot be
deducted unless sustained in connection with the taxpayer’s trade or business, if, within 30
days before or after the date of sale or other disposition, the taxpayer ¿as acquired (by pur
chase or by an exchange upon which the entire amount of gain or loss was recognized by law),
or has entered into a contract or option to acquire, substantially identical stoek or securities.
Losses in transactions betw een certain persons.—No deduction is allowable for losses from
sales or exchanges of property directly or indirectly between (a) members of a family, (6) a
corporation and an individual owning more than 50 percent of its stock (liquidations ex
cepted), (c) a grantor and fiduciary of any trust, or (d) a fiduciary and a beneficiary of the
same trust.
8.
B U S IN E S S O R P R O F E S S IO N .—F ill in Schedule H . Farm ers
keeping no books of account, or books on cash basis, m ust a tta ch
Form 1040F. A taxpayer electing to include in gross income am ounts
received during the year as loans from the Comm odity C redit Cor
poration should file w ith his return a statem en t showing the details
of such loans. (See section 123.)
I f installm ent m ethod is used, a tta ch schedule showing separately
for years 1938, 1939, 1940, and 1941: (a) Gross sales; (ft) cost of goods
sold; (c) gross profits; (d) percentage of profits to gross sales; (e)
am ount collected; (/) gross profit on am ount collected.
B ad debts m ay be deducted either ( 1) when ascertained to be wholly
or partially worthless, or (2 ) by a reasonable addition to a reserve.
(No change of m ethod w ithout permission of Commissioner.)
9 (a). IN C O M E F R O M P A R T N E R S H IP S , F ID U C IA R IE S, E T C .,
W H O SE TA XA BLE YEA R E N D S W IT H IN T H E TA XA BLE YEAR
C O V E R E D B Y T H IS R E T U R N .—E n ter as item 9 your share of
profits (whether received or not) or losses of a partnership (including
a syndicate, pool, etc., n o t taxable- as a corporation) except capital
gains and losses, which enter in Schedule F . E n te r as item 9 income
from an estate or trust. E n te r in Schedule A your share of interest
on obligations of the United S tates and instrum entalities, issued prior to
M arch 1 ,1 9 4 1 , owned by partnership, estate, or trust. Include in item
11 , and explain in Schedule C, your share of any contribution or gift,
paym ent of which was m ade by th e partnership w ithin its taxable
year. E n te r in item s 30 and 31, respectively, your share of credits for
Federal income ta x paid a t source and foreign income taxes.
9 (b ). O T H E R IN C O M E .—E n ter any other taxable in co m e,’ in
cluding earnings of m inor children if parent is legally entitled thereto.
S. GOVERNMENT PRINTING OFFICE: 1941
16— 24246
Schedule H.—PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION.
Page 4
(See Instruction 8)
( S t a t e ( 1 ) n a tu re of b u s in e s s ------------------------------------------------- --------------------------------------------------------------------------; ( 2 ) n u m b e r of p laces of business .................... ( 3 ) business name!
liil®1
a n d ad d res s if differen t fro m n a m e a n d a d d re ss on p a g e 1________________ _________________________
1. T o t a l r e c e ip ts ____________________________________________________________________________
~
—~ ■
-rffl
O T H E R B U S IN E S S D E D U C T IO N S
t
CO ST O F GOODS SO LD
1 1 . S a la rie s a n d w ag es n o t in clu d ed a s “ L a b o r ” ( d o n o t d e d u c t co m
(T o be used where inventories are an incomedetermining factor)
p e n sa tio n f o r y o u rs e lf)_________________________________________
1 2 . I n te r e s t o n business in d eb ted n ess_______________________________
2 . I n v e n to r y a t beginn ing of y e a r ___________
1 3 . T a x e s o n bu siness a n d business p r o p e r ty ___________________________
3 . M e rc h a n d is e b o u g h t f o r s a le _____________
1 4 . L o sse s (e x p la in b e lo w )_________________________________ ________________
4 . L a b o r _______________________________________
ast!
litjar,v
1 5 . B a d d e b ts arisin g fro m sales o r s e r v ic e s ________________________ _____
5 . M a te r ia l a n d su pplies______ _______________
1 6 . D e p re c ia tio n , ob so lescen ce, a n d d e p le tio n (e x p la in in S c h ed u le J ) .
6 . O th e r c o s ts (ite m iz e b e lo w )_______________
1 7 . R e n t, re p a irs, a n d o th e r e xp en ses (ite m iz e below o r on s e p a ra te
7.
Bps
T o t a l of lines 2 t o 6 _______________
s h e e t)___________________________________________________________
8 . L e s s in v e n to r y a t en d of y e a r ____________
9 . N e t c o s t o f good s sold (lin e 7 m in u s line 8 ) .
10. G ross p ro fit (lin e 1 m inus line 9 ) ________
18.
T o t a l o f lines 11 t o 1 7 __________________________________________
19.
T o t a l o f lin es 9 a n d 1 8 __________ ____________ _____ __________
2 0 . N e t p ro fit (o r lo ss) (lin e 1 m in u s line 1 9 ) (e n te r a s ite m 8 , p a g e 1).
If t h e p ro d u c tio n , m a n u f a c tu re , p u rc h a se , o r sa le of m e rc h a n d ise is a n in c o m e -p ro d u c in g f a c to r , in v e n to rie s a r e re q u ire d .
8 t o m d ic a te w h e th e r in v e n to rie s a r e v a lu e d a t c o s t, o r c o s t o r m a rk e t, w h ich e v e r is low er.
L and
lipip
E n t e r “ C ,” o r “ C o r M ” on lino, f
’
ei *
E x p la n a tio n o f d ed u ctio n s c la im e d in lines 6 , 1 4 , a n d 1 7 __________________
Schedule I.—INCOME FROM PARTNERSHIPS, FIDUCIARIES, AND OTHER SOURCES
INCOME (OR LOSS) FROM PARTNERSHIPS, SYNDICATES, ETC. (SEE INSTRUCTION 9 (a )) (FURNISH NAMES AND ADDRESSES)
iipnalserv
it illit(Mlerei
INCOME FROM FIDUCIARIES (FURNISH NAMES AND ADDRESSES)
irUe (olio
I
INCOME FROM OTHER SOURCES (STATE NATURE)
T o t a l a m o u n ts in S ch e d u le I . ( E n t e r a s ite m 9 , p a g e 1 ).
Schedule J . —EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED IN SCHEDULES F, G, AND H
I. Kind of property
(If buildings, state material of which
constructed)
2. Date
acquired
3. Cost or other basis
(Do not include land
or other nondepre
ciable property)
4. Assets fully depre
ciated in use a t end
of year
AFFIDAVIT.
5. Depreciation al
lowed (or allowable)
in prior years
6. Remaining cost or
other basis to be
recovered
1. Estimated 8. Estimated
life used in
remaining
accumulat
life from
ing depre
beginning
ciation
of year
toffiffilL...
9. Depreciation
allowable this
year
(See Instruction E)
( I f th is r e tu r n w as p re p a re d fo r y o u b y so m e o th e r p e rso n , th e follow ing a ffid a vit m u s t be e x e c u te d )
»
,
I/we swear (or affirm) that I/we prepared this return for the person or persons named herein and that the return (including an! £8 |
accompanying schedules and statements) is a true, correct, and complete statement of all the information respecting the tax liability i
of the person or persons for whom this return has been prepared of which I/we have any knowledge.
* **
Subscribed and sworn to before me this
day
(Signature of person preparing the return)
o f ........ ................. ............., 194...
(Signature of person preparing the return)
(Signature and title of officer administering oath)
☆
U. S. GOVERNMENT PRINTING OFFICE: 1941
(Name of firm or employer, if any)]
16— 24 2 46
Wt
DETACH PAGES 3 AND 4 IF NOT USED
Schedule F .—GAINS AND LOSSES FROM SALES OR EXCHANGES OF CAPITAL ASSETS.
1. Kind of property (if
necessary, attach state
ment of descriptive
details not shown below)
2. Date acquired
3. D ate sold
4. Gross sales
price (contract
price)
7. Depreciation
6. Expense of sale
allowed (or allow
and cost of im
provements sub able) since acqui
sequent to acqui sition or March I,
sition or March 1, 1913 (explain in
Schedule J )
1913
5. Cost or
other basis
Mo. Day Year
Mo. Day Year
Page 3
(See Instruction 7)
Gain or loss to betaken
into account
8, Gam or loss (column
4 plus column 7 minus
the sum of columns 5
and 6)
10. Amount
¡df*
SHORT-TERM CAPITAL GAINS AND LOSSES— ASSETS HELD NOT MORE THAN 18 MONTHS
H
$ ________ •
$ __________
$ __________
$ __________
$ _________________
100
i
$
r
100
100
i
100
T o t a l n e t s h o r t-te r m c a p ita l ga in o r loss (e n te r in lin e 1, c o lu m n 3 , o f s u m m a r y b e lo w )__________
L O N G -T E R M C A P IT A L G A IN S A N D L O S S E S — A S S E T S H E L D F O R M O R E T H A N 1 8 M O N T H S B U T N O T F O R M O R E T H A N 2 4 MONTHS
L
liltoW
l1,
1
$
$
$ __________
$ __________
$ _________________
66%
$.
66%
66%
66%
L O N G -T E R M C A P IT A L G A IN S A N D L O S S E S -— A S S E T S H E L D F O R M O R E T H A N 2 4 M O N T H S
$ __________
$ __________
$ __________
$ . ............ ..
$ _________________
50
50
50
50
T o t a l n e t lo n g -te rm c a p ita l g a in o r loss (e n te r in lin e 2 , co lu m n 3 , of s u m m a ry b e lo w )___________
r
ç
u
a
p
$ __________
SUMMARY OF NET CAPITAL GAINS OR LOSSES
2. Net short-term
capital loss of
preceding taxable
year (not in excess
of net income for
such year)
1. Classification
1. T otal net short-term capital gain or loss
(enter as item 7 ( a ) , page 1, am ount
of gain shown in column 5 ) _______ __
$ ____________
3. N et gain or loss to be taken into
account from column 10, above
Gain
4. Net gain or loss to be taken into
account from partnerships and common
trust funds
Gain
Loss
$ ______ ______
2. T otal net long-term capital gain or loss (enter as item 7 ( b) ,
page 1, am ount of gain or loss shown in column 5 )______ $ ____________
Loss
5. Total net gain or loss to be taken
into account in columns 2, 3, and 4 of
this summary
Gain
$ .....................-
$ ____________
$ ____________
$ . .......................
$ -------------------
$ ____________
$ ____________
$ ____________
Loss
No net loes
allowable (see
Instruction 7)
$ ___________
COMPUTATION OF ALTERNATIVE TAX
Use only: If you had a net long-term c a p it a l g a in ,and item 22, page 1, exceeds $12,000, or
If you had a net long-term c a p it a l loss, and such loss plus item 22, page 1, exceeds $12,000
1. N e t in c o m e (ite m 1 8, p ag e 1 ) .
(S e e Insl ruction 7)
2 . ( a ) N e t lo n g -te rm c a p ita l g a in (ite m 7
(b
$
______
N e t lo n g -te rm c a p ita l loss ( ite m 7 (b), p a g e 1 )-------------3 . O rd in a ry n e t in c o m e (lin e 1 m in u s lin e 2 ( s ) o r line 1 plus
line 2 ( ¿ ) ) . (S e e I n s tr u c tio n 7 ) ____
$
4 . L e s s : P e rs o n a l e x e m p tio n . ( F r o m S c h e d
ule D - l )
$
1 1 . S u r ta x o n line 6 .
(b)
5.
1 0 . N o r m a l t a x ( 4 % o f lin e 9 ) ________________________________ ___
. p a g e 1)
______
1 2 . P a r t i a l t a x (lin e 10 plus lin e 1 1 )______________________________
1 3 . ( a ) 3 0 % o f n e t lo n g -te rm c a p ita l g a in ( 3 0 % of line 2 (a ))_
C re d it fo r d ep e n d e n ts .
(F ro m
S ch ed u le D - 2 ) _______ ________ ___
14.
( i ) 3 0 % o f n e t lo n g -te rm c a p ita l loss ( 3 0 % o f line 2 (b) ) —
A lte r n a tiv e t a x (lin e 12 plus lin e 1 3 ( a ) o r lin e 1 2 m inus line
1 3 ( ¿ ) ) ---------------------------------------------------------------------------------
6 . B a la n c e ( s u r t a x n e t i n c o m e ) .. _____________ _______________ $ _______________
7. Less: Item 4 (a ), page 1
8.
$ __________
E a r n e d in c o m e c r e d it. (F ro m Sched
ule E - l or E - 2 ) . (See Inst. 7 ) ____
9. Balance subiect to normal tax
(S e e I n s tr u c tio n 2 7 ) ____________________
8 _______________
1 5 . T o t a l n o rm a l t a x a n d s u r t a x (ite m 2 8 . p a g e 1 )_____________
16. T a x lia b ility (if a n e t lo n g -te rm c a p i ta l ga in , o n line 2 ( a ) ,
e n te r line 1 4 o r line 1 5 , w h ich e v e r is d ie lesser; if a n e t
lo n g -te rm c a p ita l lo ss, o n lin e 2 (b), e n te r line 14 o r line
1 5 , w h ich e v e r is t h e g r e a te r ). ( E n t e r a s ite m 2 9 , page 1 ).
(See Instruction 7)
1. Kind of property
2. Date acquired
3. Gross sales price
(contract price)
4. Cost or other
basis
5. Expense of sale and cost 6. Depreciation allowed (or
allowable) since acquisition
of improvements subse
or March 1. 1913
quent to acquisition or
(explain in Schedule J)
March 1, 1913
7. Gain or loss (column 3
plus column 6 minus the
sum of columns 4 and j )
T o t a l n e t gain ( o r lo s s ) (e n te r a s ite m 7 ( c ) , p a g e 1)..
State the family, fiduciary, or business relationship to you, if any, o f purchaser of any of the items on this p a g e: _________________
I f any o f such itfms were acquired by you other than by purchase, explain fully how acquired:__________T__________________________
....-J
16— 24246
Schedule A.—INTEREST ON GOVERNMENT OBLIGATIONS, ETC.
2
Page
(See Instruction G)
4, Amount of
2. Amount owned a t end of year including
your proportionate share of such obliga
tions held by estates, trusts, partner
ships, or common trust funds
1. Obligations or securities
( a ) O b lig atio n s o f a S t a t e , T e r r ito r y , o r p o litica l su b d iv isio n th e r e
of, o r th e D is tr ic t nf C o lu m b ia , o r U n ite d S t a t e s possessions
3. Interest received or
accrued during the year
$ ________________
$
( i ) O b lig atio n s issu ed p r io r t o M a r c h 1 , 1 9 4 1 , u n d e r F e d e r a l F a r m
L o a n A c t, o r u n d e r s u c h A c t a s am en d ed
( c ) O b lig a tio n s o f U n ite d S t a t e s issued on o r b e fo re S e p te m b e r 1,
1017
(J)
principal,
interest on
which is
exempt from
taxation
5. Interest on »mount i
excess of exemption,
and dividends subject to surtax only
All
x x x x x x x x
A ll_________
x x x x x x x x
A ll_________
x x x x x x x x
All
x x x x x x x x
ifjp1
I»®!)
0f>
T r e a s u r y N o te s , T r e a s u r y B ills, a n d T r e a s u r y C e rtific a te s of
( e ) U n ite d S t a t e s S a v in g s B o n d s a n d T r e a s u r y B o n d s issu ed p rio r
t o M a " h 1, 1041
( f)
O b lig atio n s o f in s tru m e n ta litie s of th e U n ite d S ta te s (o th e r
t h a n o b lig ation s t o b e re p o rte d in ( b) a b o v e ) issu e d p rio r
(g)
D iv id e n d s o n s h a re a c c o u n ts in F e d e r a l s a v in g s a n d lo a n
a s s o c ia tio n s ________________________________________ _______________
m m
$ 5 ,0 0 0
N o n e _ __
(A)
(i)
x x x x x x x x x x x x x
X X XXXX X X X X
XX
XXX
T o t a l (e n te r a s ite m 4 ( a ) , p a g e 1 ) .
O b lig atio n s issu ed o n o r a f t e r M a r c h
1,
1 9 4 1 , b y th e U n ite d S ta te s
or
any agen cy
Amount owned at end
of year
o r in s tru m e n ta lity
Interest received or accrued
during the year (subject .
to normal tax and surtax) f
th e re o f (e n t e r a m o u n t o f in te r e s t a s ite m 4 ( i ) , p a g e 1 ) ------------------------------- --------------------------------------------------------
Schedule B.—INCOME FROM RENTS AND ROYALTIES.
4. Repairs
(explain below)
3. Depreciation or deple
tion (attach schedule)
2. Amount
1. Kind of property
$
$
(See Instruction 5)
6. Net profit (column 2 minus
sum of columns 3, 4, and 5)
(enter as item 5, page 1)
5. Other expenses
(itemize below)
$ _________________
$ _________________
$ ________________
• J
|
----- ----------- &--E x p la n a tio n of d ed u ctio n s cla im e d in co lu m n s 4 a n d 5 .
Schedule C.—EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 11, 12, 13, 14, IS, AND 16
1. Item No.
(Continued)
3. Amount
2. Explanation
1. Item No.
3. Amount
(Continued)
2. Explanation (Continued)
$..__.............
$
P®Bjl
ifilili
Ifßniä]
;
Schedule D.—EXPLANATION OF CREDITS CLAIMED IN ITEMS 20 AND 21.
Number of
months
during the
year in each
status
Status
S in gle, o r m a rrie d a n d n o t liv in g w ith h u sb a n d
HF wif<% anH pot liMfl of family
(See Instructions 20 and 21)
(2) Credit for Dependents
(1) Personal Exemption
Name of dependent and relationship
Credit claimed
Number of months
during the year
Under 18
years old
18 years
or over
Credit claimed
$ ......... .................
$
M a r rie d an d liv in g w itli fn is l a n d or w ife
R e a s o n fo r s u p p o rt if 1 8 y e a rs
o r o v e r _____________________
Schedule E.—COMPUTATION OF EARNED INCOME CREDIT.
N e t in c o m e (ite m 18, page 1) _
E arn ed
in c o m e
above)
c r e d it
(1 0 %
of
$
net
in com e ,
........................
(See Instruction 24)
(2) If your net income is more than $3,000, use only this part
of schedule
_____
(1) If your net income is $3,000 or less, use only this part
of schedule
E a r n e d n e t in c o m e ( n o t m o re th a n $ 1 4 ,0 0 0 ) .
N e t in c o m e ( ite m 18, p a g e 1 )______________________________
E a r n e d in c o m e c r e d it ( 1 0 % o f e a rn e d n e t in c o m e o r 1 0 %
o f n e t in c o m e , a b o v e , w h ich e v e r a m o u n t is sm a lle r,
b u t d o n o t e n te r less t h a n $ 3 0 0 ) _________________ ______
Q U ESTIO N S
1 . S t a t e y o u r p rin c ip a l o c c u p a tio n o r p ro fe s sio n .
2 . N a m e an d a d d re s s o f e m p l o y e r .................................
3 . D id y o u file a r e tu r n fo r a n y p rio r y e a r ? .................................
I f s o , w h a t w as
th e l a t e s t y e a r ? ____________
T o w h ich C o lle c to r ’s office w a s i t s e n t?
If s e p a ra te r e tu r n w as m a d e f o r th e c u r r e n t y e a r , s t a t e :
(а) N a m e o f h u sb an d o r w i f e __________________________________________________
(б) P e r s o n a l e x e m p tio n , if a n y , c la im e d th e re o n .............. ..................... .....................
( c ) C o lle c to r ’s office t o w h ich i t w as s e n t____________________________________
C h e c k w h e th e r th is r e tu r n w a s p re p a re d o n th e c a s h Q o r a c c r u a l Q b asis.
If r e tu f n o n c a s h b as is, d o y o u e le c t, u n d e r se c tio n 4 2 , to in clu d e a s in com e
re c e iv e d in th e c u r r e n t y e a r th e in c re a se fo r c u rre n t and prior ^
in th e re d e m p tio n p r ic e o f n o n in te re s t-b e a rin g obligations issue<" ,a i
I f so , a t t a c h s ta te m e n t listin g obligations owned
d is c o u n t? _________
c o m p u ta tio n o f th e a c c ru e d in com e .
R e p o r t su ch incom e as interes
ite m 3 o r 4 , p a g e 1, w h ich e v e r ap p lica b le .
7 . D id y o u r e c e iv e d u rin g t h e t a x a b le y e a r a n y n o n ta x a b le income other
in te r e s t re p o rte d in S ch e d u le A (s e e In s tr u c tio n G ) ? ------- -—
—■
s o ,^ a tta c h sc h e d u le sh ow in g s o u r c e , n a tu r e , a n d a m ou n t o f such inco
8 . D id y o u a t a n y tim e d u rin g y o u r ta x a b le y e a r ow n directly or
ajj
N
indixectljf
a n y s to c k o f a fore ig n c o r p o ra tio n o r a p e rso n a l holding company
fined b y s e c tio n 501 o f th e In te r n a l R e v e n u e C od e?............... - ...........
a t t a c h s t a t e m e n t re q u ire d b y In s tr u c tio n J .
16— 2424«
F O R M 1040
UNITED STATES
T re a s u ry D e p a r tm e n t
I n t e r n a l R e v e n u e S erv ice
rag © I
INDIVIDUAL INCOME TAX RETURN
(Auditor’s Stamp)
1941
OPTIONAL FORM 1040A MAY BE FILED INSTEAD OF THIS FORM IF GROSS INCOME IS NOT
MORE THAN $3,000 AND CONSISTS W H O LLY OF SALARIES, WAGES, OTHER COMPENSATION FOR PERSONAL SERVICES, DIVIDENDS, INTEREST, RENT, ANNUITIES, OR ROYALTIES
(D o n o t use these spaces)
File
Code
For Calendar \ear 1941
or fiscal year beginning_ _ _ _ _ _ _ _ _ _ , 1941, and ending_ _ _ _
„1942
To be filed with the Collector of Internal Revenue for your district not later tban the 15th day of the third
month following the close of your taxable year
PRINT NAME AND ADDRESS PLAINLY.
(Name)
'
Serial
No.
District
(C a sh ie r’s Stam p)
(See Instruction C)
(Use given names of both husband and wife, if this is a joint return)
(Street and number, or rural route)
C ash — C heck— M . 0 .
First Payment
(Post office)
Item and
Instruction No,
IN CO M E
(County)
Amount
(State)
Deductible Expenses
(Attach itemized statement)
1. Salaries and other compensation for personal services, $_______________ $__
2. Dividends_____________________________ _____ ____________________________
3. Interest on (a) bank deposits, notes, etc., $._........... (b) corporation bonds, $.
4. Interest on Government obligations, etc.:
(a) From line ( h), Schedule A, $---------------; (b) from line (/), Schedule A, $__
5. Rents and royalties. (From Schedule B)_____________________________________
6. Annuities_______________
I T E M S 7 , 8, A N D 9, B E L O W (A N D P A G E S 3 A N D 4 ) N E E D N O T B E C O N S I D E R E D
U N L E S S Y O U H A V E I N C O M E ( O R L O S S E S ) IN A D D I T I O N T O I T E M S A B O V E .
7 . (a ) Net short-term gain from sale or exchange of capital assets.
(From Schedule F)_
(J>) Net long-term gain (or loss) from sale or exchange of capital assets.
8.
(From Schedule F ) .
(c) Net gain (or loss) from sale or exchange of property other than capital assets. (From Schedule G)_
Net profit (or loss) from business or profession. (From Schedule H )______________________________
(State total receipts, from line 1, Schedule H, $______________ )
9. Income (or loss) from partnerships; fiduciary income; and other income. (From
10.
Total income in items 1 to 9______________ ______________________
Schedule i)_
D ED UCTIO N S
1 1. Contributions paid. (Explain in Schedule C )_ _ ______________________________________________________
12. Interest. (Explain in Schedule C )___________________________________________________
13. T axes.
(Explain in Schedule C )________
14. Losses from fire, storm, shipwreck, or other casualty, or theft.
13. Bad debts. (Explain in Schedule C )__________ ___
(Explain in Schedule C )________
16. Other deductions authorized by law. (Explain in Schedule C )________________________ ____________ _______
17.
Total deductions in items 11 to 16.___________________________________________
18.
Net income (item 10 minus item 17).
C O M PU TA TIO N O F T A X
19. N et income (item 18 above)_____
20. Less: Personal exemption.
(From Schedule D - l ) ______
21.
$_______ ___ _
$ ______
Credit for dependents.
29. Total tax
(From Schedule D -2 )
22. Balance (surtax net income)
$____________
23. Less: Item 4 (a) above__ $
24.
Earned income credit.
$____________
(item 28 or line 16, Schedule F ) ____
30. Less: Income tax paid a t
source__________
-21
J '*
(From Schedule E - l or E - 2 ).
25. Balance subject to normal tax. .
26. Normal tax ( 4 % of item 2 5 )______
27. Surtax O n item 22. (See Instruction 2 7 ) .
28. Total (item 26 plus item 2 7 )______
$-
Income tax paid to a foreign
country or U. S. possession.
(Attach Form 1116)______
32. Balance of tax
(item 29 minus items 30 and 3 1 ) ...
I/we swear (or affirm) th at this return (including any accompanying schedules and statements) has been examined by me/us, and j
to the best of my/our knowledge and belief is a true, correct, and complete return, made in good faith, for the taxable year stated,
pursuant to the Internal Revenue Code and the regulations issued under authority thereof.
Subscribed and sworn to b y __________________ _________ ________
before me th is ___________day o f ________________________ 194__
(Signature)
(See Instruction E )
(Signature)
,
If this is a joint return (not made by agent), it must be signed by both husband and
A return made by an agent must be accompanied by power of attorney. (See Instruction E.)
wife. It must be sworn to before a proper officer by the spouse preparing the-return.
(IF TH IS RETURN WAS PREPARED FO R YOU B Y SO M E O THER PERSO N, T H E AFFIDAVIT ON PAGE 4 M UST B E EXECUTED)
,
2 1
(Signature and title of officer administering oath)
16— 24246
-
2-
The new form 1040 A, provided for in the Revenue Act of 1941 for incomes ]
of $3,000 or less from salary, wages, compensations for personal service, div-J
idends, interest, rent, annuities and royalties, is even more simple than re- j
vised form 1040. A table on the reverse side of this form shows the amount
of tax on increasing amounts of gross income after the proper allowance of
$4-00 for each dependent, if any. The table automatically reflects no tax lia-1
bility in cases where the gross income, less credit for dependents is not in
excess of exemption levels.
In the case of this simplified form 104-0A^ the status of a person on the
last day of the taxable year is the governing ractor in determining the ex
emption level as well as the credit for dependents. Under form 104.0 the
credit for dependents or marital status is prorated according to the portion I
of the year during which the taxpayer was married or had the dependent.
’
In the case of the new form 1040A the tax is the same for each $25
block of gross income and the taxpayer need only ascertain in which block
his gross income (less the allowance for dependents) falls to determine his
tax. A flat deduction of 10 percent has been made in the figures on the table]
for exemptions such as charity and taxes paid, so that the taxpayer who uses j
this form does not list these, but gets an automatic deduction of 10 percent. I
Use of this simplified form 104.0A is optional for taxpayers whose income I
is wholly from the specified sources and does not exceed $3,000. Those who
prefer may use form 104.0 though their income is less than $3,000.
-o0o-
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Sunday, November 23, 1941.______
Press Service
No.
Revised form 1040 for 194-1 income tax returns was made public today
by the Treasury Department.
All individuals filing returns who do not use simplified form 1040 A
provided for in the Revenue Act of 1941 for certain incomes of #3,000 or
less will make their reports on the new 1040 form regardless of the size
or the source of their incomes.
Form 1040 also has been simplified this year so that persons whose
incomes from salaries and other compensations for personal service,
dividends, interest, rents, royalties and annuities may fill in pages one
and two of the new form and disregard the remaining two pages. The form
is so printed that in such cases the taxpayer may tear off the second sheet
of the form on which pages three and four are printed and file only the
first sheet which contains pages one and two.
Taxpayers whose income is determined by business and capital gains and
losses, however, will fill out the entire four pages of the form.
Printing of 6$,000,000 copies of the form is being rushed so they will
be in the hands of Collectors of Internal Revenue by January 1. The Bureau
of Internal Revenue estimates that 10,000,000 or more taxpayers will use
form 1040 this year and some 12,000,000 taxpayers the simplified form 1040 A
The old form 1040 was
more but under the present
not elect to use form 1040
income, if it is above the
for a married person.
used by all persons whose income was #5,000 or
system all taxpayers who are not eligible or do
A will use form 1040, no matter hoy/ high their
exemptions of #750 for a single person and #1,500
Taxpayers with incomes of more than #5,000 who formerly used form 1040
will find the revised form much more simple, Bureau of Internal Revenue
officials pointed out. If their income is from salary, wages, etc., and
not from business transactions they will be able to skip items 7,8,9 and 10
on page one in addition to disregarding pages three and four of the form.
Two affidavits which appeared on the last page of the old form have
been separated in the revised version so that one appears on page one and
the other on page four.
Two pages of printed instructions, on two sides of one sheet, have
been attached to the form and the attachment is perforated so that the in
structions may be torn off easily.
i38S
HP
¡%K^k le£-*v.V SS’
Sfe'1
®
- v i! * *' I P 4
JltilS ®
-
2
m
-
A «b»it of instruction* is attached to the form and contains the
information necessary for the proper preparation of the return.
The new form 1Q40A, prescribed in accordance with the Bevenue
Act of 1941 for incomes of #3,000 or lone from salary, wages, compensation
for personal ssrvios, dividends, interest, rent, annuities and royalties,
is evsn acre simple then the new Fora 1040. A table on the reverse
side of thin f o r m shows the amount of tax on increasing amounts of gross
income after the propar allowance of |400 for each dependent, if any.
In the ease of this simplified T o m 1040A, the status of a parson
on tho last day of the taxable year la the governing fee tor in deter
mining tbe exemption level as well as the credit for dependents. On
form 1040 the personal exemption and credit for dependents are prorated
according to the portion of tho yonr during which tho taxpayer was
married or head of a family or had depandanta.
In tho case of the new form 1040A tho tax Is the same for oaoh
#25 block of gross income and the taxpayer need only ascertain in which
block his gross Income (less tbe allowance for dependents) falls to
determine his tax. A flat reduction of 10 percent has been made in
arriving at the amount of tax shown in tha tabla for deductions such
as charitable contributions and taxes paid, eo that the taxpayer who
uaas this form does not list these but gets an automatic deduction of
10 percent.
Use of this simplified form 1040A la optional for taxpayers whose
income is wholly from the specified sources and dess not exessd #3*000.
Those who prefer may use form 1040 though their income is less than
#3 .000.
IS^pSI ps®s3pipp^
M
m
mm
TRKASURT D£PARThUMt
Washington
Frees Service
Wo. ¿ - ¥ - ¿ 2
FOB R&LEASI, MQBMIKO NIFSPAPIRS,
Sunday* November 23. 1941.
Hevised T o m 1040 for 1941 income tax returns was mad© public
today by tha Treasury Department*
All individuals filing returns who do not eleet to use simplified
Fora 1040A prescribed in accordance with the Revenue Act of 1941 for
eertaln incomes of #3,000 or loss will make their reports on the new
Fora 1040 regardless of ths site or source of their incomes.
Fora 1040 also has been simplified this year 00 that persons
whose income is entirely from salaries and other compensation for
personal service, dividends, interest, rents, royalties and annuities
may fill in pages one and two of the new Form and disregard the
remaining two pages* The Form Is so printed that in such cases the
taxpayer may tear off the second sheet of the Form on which pages
three and four are printed and file only the first sheet which
contains pages on© and two*
Taxpayers who have incase or losses from other sources, such
ns from business or sale or exchange of capital assets, will fill
out the entire four pages of the Form.
Printing ©¿--65,¿00, GOO copies of the Form-ie being rushed 00
they will be in the hands of Collectors of Internal Revenue by
January 1, 1942* The Bureau of Internal Revenue estimates that
10.000. 000 or more taxpayers will use Form 1040 this year and some
12.000. 000 taxpayers the simplified Form 1040A.
The old Form 1040 was used by all persons whose gross income was
more than #3,000, but under the present system all taxpayers who are
not eligible or do not elect to use Form 1040A will us© Fora 1040»
if gxsts income is equal to or exceeds ths exemption of #750 for a
single person end #1,5 0 0 for a married parson*
A large majority of ths taxpayers who formerly used Fora 1040
will find the revised Fora much more simple, Bureau of Internal
Revenue officials pointed out* If their income is wholly from
compensation for personal services and from investments, they will
be able to ship Items 7» 3» 9 end 10 on page one and disregard
pages three and four of the Form*
-
2
-
A sheet of instructions is attached to the Form and contains the
information necessary for the proper preparation of the return.
The new Form 1040A, prescribed in accordance with the Revenue
Act of 19^1 for incomes of #3,000 or less from salary, wages, compensation
for personal service, dividends, interest, rent, annuities and royalties,
is even more simple than the new Form 1040. A table on the reverse
side of this Form shows the amount of tax on increasing amounts of gross
income after the proper allowance of #400 for each dependent, if any»
In the case of this simplified Form 1040A, the status of a person
on the last day of the taxable year is the governing factor in deter
mining the exemption level as well as the credit for dependents. On
Form 1040 the personal exemption and credit for dependents are prorated
according to the portion of the year during which the taxpayer was
married or head of a family or had dependents.
In the case of the new Form 1040A the tax is the same for each
#25 block of gross income and the taxpayer need only ascertain in which
block his gross income (less the allowance for dependents) falls to
determine his tax. A flat reduction of 10 percent has been made in
arriving at the amount of tax shown in the table for deductions such
as charitable contributions and taxes paid, so that the taxpayer who
uses this Form does not list these but gets an automatic deduction of
10 percent.
Use of this simplified Form 1040A is optional for taxpayers whose
income is wholly from the specified sources and does not exceed #3,000.
Those who prefer may use Form 1040 though their income is less than
#3»000.
TREASURY DEPARTMENT
Washington
Press Service
No.
FOR RELEASE, MORNING- NEWSPAPERS,
Sunday, November 23, 1941«______
Revised Form 1040 for 194-1 income tax returns was made public
today by the Treasury Department.
All individuals filing returns who do not elect to use simplified
Form 1040A prescribed in accordance with the Revenue Act of 1941 for
certain incomes of #3,000 or less will make their reports on the new
Form 1040 regardless of the size or source of their incomes.
Form 1040 also has been simplified this year so that persons
whose income is entirely from salaries and other compensation for
personal service, dividends, interest, rents, royalties and annuities
may fill in pages one and two of the new Form and disregard the
remaining two pages. The Form is so printed that in such cases the
taxpayer may tear off the second sheet of the Form on which pages
three and four are printed and file only the first sheet which
contains pages one and two*
Taxpayers who have income or losses from other sources, such
as from business or sale or exchange of capital assets, will fill
out the entire four pages of the Form.
Printing of 65,000,000 copies of the Form is being rushed so
they will be in the hands of Collectors of Internal Revenue by
January 1, 1942. The Bureau of Internal Revenue estimates that
10.000. 000 or more taxpayers will use Form 1040 this year and some
12.000. 000 taxpayers the simplified Form 1040A.
The old Form 1040 was used by all persons whose gross income was
more than #5,000, but under the present system all taxpayers who are
not eligible or do not elect to use Form 1040A will use Form 1040,
if gross income is equal to or exceeds the exemption of #750 for a
single person and #1,500 for a married person.
A large majority of the taxpayers who formerly used Form 1040
will find the revised Form much more simple, Bureau of Internal
Revenue officials pointed out. If their income is wholly from
compensation for personal services and from investments, they will
be able to skip items 7, 8, 9 and 10 on page one and disregard
pages three and four of the Form.
November 19, 194,1
IT j?
CPS
ttemorandum to Mr. Schwarzi
The proposed release for morning newspapers« Sunday, November
23» 1941» has been considered and certain changes are suggested*
In order that you may more easily consider the changes, they
have been indicated in red pencil on a copy of the original draft*
A rewrite incorporating such changes has also been prepared.
The file Is returned to you that you may give consideration to
the changes suggested.
(Signed) Guy T. Haivsrin*
Commissioner.
//V/
TREASURY
DEPARTMENT
WASHINGTON
OFFICE OF
C O M M IS S I O N E R O F IN T E R N A L R E V E N U E
November 19, 1941
ADDRESS REPLY TO
COMMISSIONER OF INTERNAL REVENUE
AND R EFE R TO
IT:P
CPS
Memorandum to Mr* Schwarzi
The proposed release for morning newspapers, Sunday, November
2 3 , 1941» has been considered and certain changes are suggested.
In order that you may more easily consider the changes, they
have been indicated in red pencil on a copy of the original draft*
A rewrite incorporating such changes has also been prepared.
The file is returned to you that you may give consideration to
the changes suggested.
-3*JlU *
tL
The new form 1040^A.,/pa?®«^®eb^©si^ii the Revenue Act of 1941
for incomes of $3,000 or less from salary, wages, compensatior^ for
personal service, dividends, interest, rent, annuities and royalties,
0fi
v
is even more simple than ¿»evareed form 1040. A table on the reverse
side of this form shows the amount of tax on increasing amounts of
gross income after the proper allowance of $400 for
if any.
dependent,
Thau,.tahie»,
In the case of this simplified fbrm 1040A, the status of a person
on the last day of the taxable year is the governing factor in deter
mining the exemption level as well as the credit for'dependents.
form 1040 the/credit for^dependents
promt ed
according to jhe portj.ony>f the year during which the taxpayer was
p i rs
married/ or had
dependent^,
In the case of the new ji>rm 1040A the tax is the same for each
$25 block of gross income and the taxpayer need only ascertain in which
block his gross income (less the allowance for dependents) falls to
determine his tax.
¡T fu
A flat 'deduction of 10 percent has been made in the1
* ^
TjBpwsNMk-bn. the table for
fhga*aae»-4Mi
such as aba»i*4y and taxes paid, so
that the taxpayer who uses this form does not list .the®«, but gets an
automatic deduction of 10 percent.
Use of this simplified jform 1040A is optional for taxpayers whose
income is wholly from the specified sources and does not exceed $3 >000.
Those who prefer may use jfbrm 1040 though their income is less than
$3»000.
- 2 -
The old jForm 104-0 was used by all persons whose /income was
fi^'7000 or more but under the present system all taxpayers who are
not eligible or do not elect to use |brm 1 0 4 0 will use Jform
i
of
m
&
m
1040,
» if Jdfrnit»®twre the exemption/
#750 for a single person and $ 1,500 for a married person,
¿y/ *fiC**'Taxpayers
i a g p w u a u f m o r e ..t te e w a re ffo y fia e who formerly used
jÜSrm 1040 will find the revised form much more simple, Bureai
Internal Revenue officials pointed out.
T -
|
* *“
i
"
If their income is/from
• ^ A----- ifttj—
be able to skip items 7, 8, 9 and 10 on page one i n
di sregardiii^ pages three and four of the fbrm.
fasste
on „pa^a.. o f t ^ a a S
attached to the form
0^
they will
a d <.ii t i o f»n#w
'
TREASURY DEPARTMENT
Washington
Press Service
k o . 2.<£ - * T £
FOR RELEASE, MORNING NEWSPAPERS,
Sunday, November 23» 194-1______
Revised Worm. 1040 for 1941 income tax returns was made public
it t
today by the Treasury Department.
All individuals filing returns who do not^ise simplified ^orm
1
0
4
0
the Revenue Act of 1941 for awfe«fm incomes
of $3*000 or less will make their reports on the new (1040 formregardless of the size or source of their incomes.
Form 1040 also has been simplified this year so that persons
whose income/from salaries^and other compensation^ for personal
service, dividends, interest, rents, royalties and annuities may fill
in pages one and two of the new form and disregard the remaining two pages
The form is so printed that in such cases the taxpayer may tear off
the second sheet of the form on which pages three and four are printed
and file only the first sheet which contains pages one and two.
Taxpayers wj
N*
m
MpW’
•*
business
►, will fill out the entire four pages of the
form.
g ^
.
Printing (pf 65,000,000 copiesjof the form is being rushed so they
will be in the hands of Collectors of Internal Revenue by January lj>
The Bureau of Internal Revenue estimates that 10,000,000 or more
taxpayers will use fbrm
1040 this year and some 12,000,000 taxpayers
the simplified form. 1040^»
T R E A S U R Y DEP A R T M E N T
Washington
for r e l e a s e , m o r n i n g
Sunday, November 23,
,
19*11._______
newspapers
Press Service
No. 2G-53
11/19/^1
Revised. Form 10^0 for I 9 I+I Income tax returns was made public
today by the T r e a s u r y Department.
, All individuals filing returns who do not elect to use
simplified Form 1 0 4 0 A p r e s c r i b e d in accordance w i t h the Revenue Act
of 19^1 for certain incomes of $ 3 ,000 or less will make their r e
ports on the new Form 1 0 4o regardless of the size or source of
their incomes.
Form 104 0 also has been sim p l i f i e d this year so that persons
whose income is entirely from salaries and other c ompensation for
personal service, dividends, interest, rents, royalties and annuities
may fill in pages one and two of the n ew For m and d i s r e g a r d the
remaining two pages.
The Form is so p r i n t e d that in such cases the
taxpayer may tear off the second sheet of the Form on w h i c h pages
'three and four are p r i n t e d and file only the first sheet w h i c h
contains pages one and two.
Taxpayers who have income or losses from other sources, such
as from business or sale or exchange of capital assets, wil l fill
out the entire four pages of the Form.
P r i nting of the forms is b e i n g r u s h e d so they will be in the
hands of Collectors of Internal R e v e n u e by January 1, 194-2.
The
Bureau of Internal R e v enue estimates that 1 0 , 0 0 0 , 0 0 0 or more t a x
payers will use Form 1040 this year and some 1 2 , 0 00,000 taxpayers
the simplified Form 1040A.
The old Form 1040 was u s e d by all persons whose gross income
was more than $ 5 > 000, but under the present system all taxpayers who
are not eligible or do not elect to use Form 1 0 4 0 A will use Form
10^0, if gross income is equal to or exceeds the exemption of $750
for a single person and $ 1,500 for a m a r r i e d person.
A large m a j o r i t y of the taxpayers who formerly use d Form 1040
will find the r e v i s e d Form m u c h more simple, B u r e a u of Internal
Revenue officials p o i n t e d out.
If their income is xvholly from c om
pensation for per s o n a l services and from investments, they will be
able to skip items J , S , 9 and 10 on page one and dis r e g a r d pages
'three and four of the Form,
A sheet of instructions is att a c h e d to the Form and contains
the information n e c essary for the p r o p e r p r e p a r a t i o n of the return.
- 2 -
The new Form 1040A. p r e s c r i b e d in acc o r d a n c e w i t h the R e v e n u e Act
of 19 I4-I for incomes of $ 3,000 or less fro m salary, wages, c o m p e n
sation for pe r s b h a l service, dividends, interest, rent, annuities
and royalties, is even more simple than the n e w Form 1040,
A table
on the reverse side of this Form shows the amount of tax on i n c r e a s
ing amounts of gross income after the p r o p e r allowance of |400 for
each dependent, if any.
In the case of this s i m p l i f i e d Form 1040A, the status of a
person on the last day of the taxable year is the g o v e r n i n g factor
in determining the exemption level as well as the credit for
dependents.
On Form 1040 the per sonal e x e m ption and credit for
dependents are p r o r a t e d a c c o r d i n g to the p o r t i o n of the year d u r i n g
which the tax p a y e r was m a r r i e d or h e a d of a family or h ad dependents,
In the case of the n e w Form 1 0 4 0 A the t a x is the same for each '
J25 block of gross income and the t a x p a y e r n eed only ascertain in
which block his gross income (less the allowance for d e p e n d e n t s )
falls to d e t e r m i n e his tax.
A flat r e d u c t i o n of 10 percent has
been made in ar r i v i n g at the amount of tax shown in the table for
deductions such as charitable contr i b u t i o n s and taxes paid, so
that the tax p a y e r who uses this F orm does not list these but gets
an automatic d e d u c t i o n of 10 percent.
Use of this s i m p l i f i e d Form 1 0 4 0 A is optional for taxpayers
whose income is w h o l l y from the spe c i f i e d sources and does not
exceed $3,000.
Those who p r e f e r may u se Form 1040 ''though their
ifrcome is less than $ 3 , 000,
-OoO-
104Ö
U N IT E D S T A T F S
r jreasury D ep artm en t
internal Revenue Serv ice
Page 1
INDIVIDUAL INCOME TAX RETURN
(Auditor’s Stam p)
1941
OPTIONAL FORM 1040A MAY B E FILED INSTEAD OF THIS FORM IF GROSS INCOME IS NOT
MORE THAN $3,000 AND CONSISTS W H O LLY OF SALARIES, WAGES, OTHER COMPENSATION FOR PERSONAL SERVICES, DIVIDENDS, INTEREST, RENT, ANNUITIES, OR ROYALTIES.
(D o not use these spaces)
File
Code
For Calendar \ear 1941
or fiscal year beginning_ _ _ _ _ _ _ _ _ _ , 1941, and ending_ _ _
.,1942
To be filed with the Collector of Internal Revenue for your district not later than the 15th day of the third
month following the close of your taxable year
PRINT NAME AND ADDRESS PLAINLY.
(Name)
Serial
No.
District
(Cashier’s Stam p)
(See Instruction C)
(Use given names of both husband and wife, if this is a joint return)
Cash— Check— M . 0 .
(Stréet and number, or rural route)
First Payment
(Post office)
INCOM E
I Item and
lnitruction No.
(County)
Amount
(State)
Deductible Expenses
(Attach itemized statement)
1. Salaries and other compensation for personal services, $______________ $__
2. Dividends----------------------------------------------------------------------------------- -3. Interest on (a) bank deposits, notes, etc., $________ ; (b) corporation bonds, $
4. Interest on Government obligations, etc.:
(a) From line ( h), Schedule A, $-------------- ; (b) from line (z), Schedule A, $..
5. Rents and royalties. (From Schedule B)__________________________________
6. Annuities...._______ I __________ I____ _______ ___________ ___ _____
I T E M S 7, 8, A N D 9, B E L O W (A N D P A G E S 3 A N D 4) N E E D N O T B E C O N S I D E R E D
U N L E S S Y O U H A V E I N C O M E ( O R L O S S E S ) IN A D D I T I O N T O I T E M S A B O V E .
(a) Net short-term gain from sale or exchange of capital assets.
(From Schedule F ) __________
(i>) Net long-term gain (or loss) from sale or exchange of capital assets.
(From Schedule F ) _
(c) Net gain (or loss) from sale or exchange of property other than capital assets. (From Schedule G)_
Net profit (or loss) from business or profession. (From Schedule H )__________________ ___________
(State total receipts, from line 1, Schedule H , $______________ )
Income (or loss) from partnerships; fiduciary income; and other income. (From Schedule i)_
Total income in items 1 to 9______________________________ __________________
DEDUCTIONS
Contributions paid. (Explain in Schedule C )___________________________________ ________________________________
Interest. (Explain in Schedule C )___________________________________________________________________________________
Taxes. (Explain in Schedule C )__________________________________________________________________ ___________________
Losses from fire, storm, shipwreck, or other casualty, or theft. (Explain in Schedule C )________
Bad debts. (Explain in Schedule C )___ ._______________ _________________________________________ !__________________
Other deductions authorized by law.
(Explain in Schedule C )____________________________________________
Total deductions in items 11 to 16____________ ______________ ________________
___ Net income (item 10 minus item 17)____ _____________ i _______ ________ ____ ___
CO M PU TA TIO N O F T A X
19. Net income (item 18 above)
26. Normal tax ( 4 % of item 25)______
27. Surtax On item 22. (See Instruction 2 7 ) .
20. Less: Personal exemption.
(From Schedule D - l ) _____
l?L
28. Total (item 26 plus item 2 7 )______
29. Total tax (item 28 or line 16, Schedule F ) ____
Credit for dependents.
Jr
(From Schedule D -2 )____________
P . Balance (surtax net income)
30. Less: Income tax paid at
source__________ $ ____
|3. Less: Item 4 (a) above__
Earned income credit.
■
o1
(From Schedule E - l o r E - 2 ).
P . Balance subject to normal tax.
$-
Income tax paid to a foreign
country or U. S. possession.
(Attach Form 1116)______
32. Balance of tax
(item 29 minus items 30 and 31)..
1 I/we swear (or affirm) that this return (including any accompanying schedules and statements) has been examined by me/us, and
E'the best of my/our knowledge and belief is a true, correct, and complete return, made in good faith, for the taxable year stated,
ursuant to the Internal Revenue Code and the regulations issued under authority thereof.
S
ubscribed and sworn to b y ___ ____ ____________________________
11 ,
.
v berore me this
_________________ _______________________________
(Signature)
(See Instruction E )
____day o f __________ ^ ___ __________ , 194__
(Signature)
If this is a joint return (not made by agent), it must be signed by both husband and
f Are urn ma“e by an agent must be accompanied by power of attorney. (See Instruction E.)
wife. It must be sworn to before a proper officer by the spouse preparing the return.
(IF THIS RETURN WAS PREPARED FO R YOU BY SO M E O THER PERSO N, T H E AFFIDAVIT ON PAGE 4 MUST B E EXECUTED)
r. «
(Signature and title of officer administering oath)
Schedule A.— INTEREST ON GOVERNMENT OBLIGATIONS, ETC.
*7»
2. Amount owned a t end of year including
your proportionate share of such obliga
tions held by estates, trusts, partner
ships, or common trust funds
1. Obligations or securities
P - — ..
Page 2
(See Instruction G)
3. Interest received or
accrued during the year
4. Amount of
principal,
interest on
which is
exempt from
taxation
5. Interest on amount in
excess of exemption,
and dividends sub
ject to surtax only
All
X X X X X X X X
All
Y Ï Y Ÿ V T T V
All
X X X X X X X X
A ll
xxxxxxxx
■a) Obligations of a
S ta te , T e r rito r y , o r p o litica l su b d iv isio n th e r e of or the D istrict of C o lu m b ia, o r U n ite d S t a t e s possessions
b) Obligations issued p rio r t o M a r c h 1, 1 9 4 1 , u n d e r F e d e r a l F a r m
*
Loan A ct, o r un der su ch A c t a s a m e n d e d ______
__________
L) Obligations of U nited S ta te s issu ed on o r b e fo re S e p te m b e r 1,
i
Mtf:im
■
$ _____________________________
$ „
1917_______________________________________________________________
Treasury N o tes, T re a su ry B ills, a n d T r e a s u r y C e rtif ic a te s of
Indebtedness issued p rio r t o M a r c h 1, 1 9 4 1 __________________
’i)
le) United S ta te s Savings B o n d s a n d T r e a s u r y B o n d s issu e d p rio r
to M arch 1, 1941________________________________________________
(f) Obligations of in stru m en talities o f th e U n ite d S t a t e s (o th e r
than obligations to be re p o rte d in (b) a b o v e ) issu e d p rio r
to M arch 1, 19 4 1 _____________________________________________
(j) Dividends on sh are a c c o u n ts in F e d e r a l s a v in g s a n d loan
associations------------------------------------------------------------------- -----------
$ 5 ,0 0 0
xxxxxxxxxxxxx
X x xxxxxxxx
X X
$
X X X
T otal (en ter as item 4 ( a ) , p a g e 1 ) .
Obligations issued on o r sifter M a r c h
1,
1 9 4 1 , b y th e U n ite d S ta te s
thereof (en ter a m o u n t of in te r e s t a s ite m 4
(b),
or
a n y a g e n cy
2. Amount
$ _________________
3. Depreciation or deple
tion (attach schedule)
$ _________________
Interest received or accrued
during the year (subject
to normal tax and surtax)
$-
p a g e 1 ) ____________________________________ _____ ________ _____
Schedule B.— INCOME FROM RENTS AND ROYALTIES.
1. Kind of property
Amount owned at end
of year
o r in s tr u m e n ta lity
(See Instruction 5)
4. Repairs
(explain below)
6. Net profit (column 2 minus
sum of columns 3, 4, and 5)
(enter as item 5, page 1)
5. Other expenses
(itemize below)
$
$ ______
$
Explanation of deductions claim ed in co lu m n s 4 a n d 5 .
piitoiA
Schedule C.—EXPLANATION OF DEDUCTIONS CLAIMED IN ITEMS 11, 12, 13, 14, IS, AND 16
2. Explanation
1, Item No.
1. Item No.
(Continued)
3. Amount
3. Amount
(Continued)
2. Explanation (Continued)
$ ______________
$
"WO
Schedule D.—EXPLANATION OF CREDITS CLAIMED IN ITEMS 20 AND 21.
(1) Personal Exemption
Number of
months
during the
year in each
status
Status
(See Instructions 20 and 21)
(2) Credit for Dependents
Credit claimed
Name of dependent and relationship
Number of months
during the year
Under 18
years old
Credit claimed
18 years
or over
jSingle, or married an d n o t liv in g w ith h u sb a n d
I or wife, and n o t h ead o f f a m ily _______________
$
'parried and living w ith h u sb an d o r w i f e . . . —__
Head of family (explain b elo w )___________________
R e a s o n fo r s u p p o rt if 1 8 y e a rs
or over
Schedule E.—COMPUTATION OF EARNED INCOME CREDIT.
! (1) If your net Income is $3,000 or less, use only this part
L
of schedule
«S
\\|8®t income
(item 18. Dave 1 )
Earned income cred it ( 1 0 %
, above)
$________
of
net
(See Instruction 24)
(2) If your net income is more than $3,000, use only this part
of schedule
E a r n e d n e t in c o m e ( n o t m o re t h a n $ 1 4 ,0 0 0 ) r ____________
in c o m e ,
N e t in c o m e (ite m 1 8 , p a g e 1 )_______________________________
E a r n e d in com e c r e d it ( 10 % o f e a rn e d n e t in com e o r 1 0 %
o f n e t in c o m e , a b o v e , w h ich e v e r a m o u n t is sm a lle r,
b u t d o n o t e n te r less th a n $ 3 0 0 ) .
Q U ESTIO N S
State your princip al o c c u p a tio n o r p ro fe s s io n .
Name and address of e m p lo y e r .
H
Did you file a re tu rn fo r a n y p rio r y e a r ? ________________
I f s o , w h a t w as
the latest y e a r ? ------------------T o w h ich C o lle c to r ’s office w a s i t s e n t?
^ ,8eJ T ate re^u rn w as m a d e f o r d i e c u r r e n t y e a r , s t a t e :
w N am e of hu sband o r w if e __________________________________________________
UN
r Jlt 5,a
W Personal exem p tio n , if a n y , c la im e d th e r e o n _________________ __________
u
! eCt0r’S ° ® ce
w h ich i t w a s s e n t____________________________________
whether this re tu rn w as p re p a re d o n th e c a s h Q o r a c c r u a l □ b asis,
in on cash basis, d o y o u e le c t, u n d e r s e c tio n 4 2 , to inclu de a s in com e
r e c e iv e d in th e c u r r e n t y e a r th e in c re a se f o r c u r r e n t a n d p rio r y e a rs
in th e re d e m p tio n p ric e o f n o n in te re s t-b e a rin g o b lig a tio n s issued a t a
d is c o u n t? _________
I f so , a t t a c h s t a t e m e n t listin g o b lig a tio n s o w n ed an d
c o m p u ta tio n o f t h e a c c ru e d in com e .
R e p o r t s u ch in c o m e a s in te r e s t in
ite m 3 o r 4 , p a g e 1, w h ich e v e r a p p lica b le .
7 . D id y o u re c e iv e d u rin g t h e ta x a b le y e a r a n y n o n ta x a b le in c o m e o th e r t h a n
in te r e s t r e p o rte d in S c h e d u le A (s e e I n s tr u c tio n G ) ? __________________
If
s o ,„ a tta c h sc h e d u le sh ow in g s o u r c e , n a tu r e , a n d a m o u n t o f s u c h in c o m e .
8 . D id y o u a t a n y tim e d u rin g y o u r t a x a b l e y e a r o w n d ir e c tly o r in d ire c tly
a n y s to c k o f a fore ig n c o r p o ra tio n o r a p e rso n a l h old in g c o m p a n y a s d e
fined b y s e c tio n 501 o f th e In te r n a l R e v e n u e C o d e ? ________________
I f so ,
a t t a c h s t a t e m e n t re q u ire d b y I n s tr u c tio n J .
16— 2 4 2 46
‘¿¿I,-.
Ml
t'Si
D ETA CH
-H i
3
AND
4
IF
N O T
USED
Page 3
Sched ule
F .— G A IN S
hj►1. Kind of property (if
necessary, attach state
jn
AND
LO SSES
2. Date acquired
ment of descriptive
details not shown below)
FRO M
3. Date sold
SA LES
4. Gross sales
price (contract
price)
O R
EXC H A N G ES
C A P IT A L
A SSETS.
(S e e
In s tru c tio n
7)
6. Expense of sale
7. Depreciation
Gain or loss to be taken
and cost of im
allowed (or allow 8* Gain or loss (column
into account
provements sub able) since acqui 4 plus column / minus
sequent to acqui sition or March 1,
the sum of columns 5
9. Per
sition or March 1, 1913 (explain in
and 6)
cent
10. Amount
1913
Schedule J )
age
5. Cost or
other basis
Mo, Day Year
Mo, Day Year
O F
SH O RT-TERM CAPITAL GAINS AND LOSSES— ASSETS H ELD NOT M O RE THAN 18 MONTHS
$ ____
$ ____
$ ____
$ ____
$
$_
Total net sh o rt-te rm c a p ita l g a in o r loss (e n te r in lin e 1, c o lu m n 3 , of s u m m a ry b e lo w ).
LONG-TERM CAPITAL GAINS AND LOSSES— ASSETS H ELD FO R M O RE THAN 18 MONTHS BUT NOT FO R M O RE THAN 24 MONTHS
$ ____
$ ____
$ ____
$ ____
$ ____
LONG-TERM CAPITAL GAINS AND LOSSES— ASSETS H ELD FOR M O RE THAN 24 MONTHS
"W
L—
01«««1»)
PA G ES
$ ________
$________
$________
$________
s
Total net lo n g -term c a p ita l g a in o r loss (e n te r in lin e 2 , co lu m n 3 , of s u m m a ry b e lo w ).
SU M M A R Y
2. Net short-term
capital loss of
preceding taxable
year (not in excess
of net income for
such year)
Classification
O F
N ET
C A P IT A L
G A IN S
LO SSES
4. Net gain or loss to be taken into
account from partnerships and common
trust funds
3. Net gain or loss to be taken into
account from column 10, above
Gain
O R
Gain
Loss
5. Total net gain or loss to be taken
into account in columns 2, 3, and 4 of
this summary
Loss
Gain
Loss
jl. Total net short-term capital gain or loss
|
No net loss
allowable (see
Instruction 7)
(enter as item 7 (a ), page 1, am ount
of gain shown in column 5 )......... .......
2, Total net long-term capital gain or loss (enter as item 7 ( b),
[ page I, amount of gain or loss shown in column 5)_____
$-
$-
C O M P U T A T IO N
U se o n ly : If y o u h a d a n e t lo n g -te r m
If y o u h a d a n e t lo n g -te rm
¡1. Net income (item 18, p ag e 1 ) .
(b), p a g e
j
S u r ta x o n line 6 .
( i ) 3 0 % of n e t lo n g -te rm c a p ita l loss ( 3 0 % of line 2 (jb))__
14. A lte r n a tiv e t a x (lin e 12 plus line 13 ( a ) o r lin e 1 2 m in u s line
13 (b)) --------------------------------------------------------------------------------T o t a l n o rm a l t a x a n d s u r ta x (ite m 2 8 , p a g e 1 )______________
T a x lia b ility (if a n e t lo n g -te rm c a p ita l g a in , o n line 2 ( a ) ,
e n te r line 1 4 o r line 1 5 , w h ich e v e r is th e le sse r; if a n e t
lo n g -te rm c a p ita l loss, o n lin e 2 (b), e n te r line 1 4 o r line
15, w h ich ev er is th e g re a te r ). ( E n t e r a s ite m 2 9 , p a g e 1 ) .
$____
j*•Balance subject t o n o rm al t a x _______
1. Kind of property
I—
FRO M
2. Date acquired
SA LES
O R
EXC H A N G ES
3. Gross sales price
(contract price)
4. Cost or other
basis
O F
PR O PER T Y
O TH ER
TH AN
5. Expense of sale and cost 6. Depreciation allowed (or
allowable) since acquisition
of improvements subse
quent to acquisition or
or March 1, 1913
March 1, 1913
(explain in Schedule J )
C A P IT A L
■■■■
$
$
$
$
$
------------------------------------------------------------------- -----------------------Total n et gain (o r lo ss) (e n te r a s ite m 7 ( c ) , p a g e 1 )________________
l
«/i thefamily, fiduciary,
or business relationship to you, if any, o f purchaser of any of the items on this page:
toyof such items were acquired by you other than by purchase, explain fully how acquired:___________________
f
A SSETS
7. Gain or loss (column 3
plus column 6 minus the
sum of columns 4 and 5)
----------------------------------------------
---------------
)
LO SSES
$-
(S e e I n s tr u c tio n 2 7 ) _____________________
( a ) 3 0 % o f n e t lo n g -te rm c a p ita l g a in ( 3 0 % of line 2 ( a ) ) ..
Earned incom e cre d it. (F ro m Sched
ule E - l or E - 2 ) . (See Inst. 7 )
AND
2 2 , p a g e 1 , e x c e e d s $ 1 2 ,0 0 0
P a r t i a l t a x (lin e 10 plus line 1 1 )_______________________________
Balance (su rtax n e t in c o m e )_____________
G .— G A I N S
2 2 , p a g e 1 , e x c e e d s $ 1 2 ,0 0 0 , o r
s u c h lo ss p lu s ite m
N o rm a l t a x ( 4 % o f line 9 ) ____________________________________
1)
r
ite m
$-
$-
T A X
1 ) . ______
(J) Net long-term c a p ita l loss (ite m 7 (b), p a g e
________
3. Ordinary net incom e (lin e 1 m in u s line 2 ( a ) o r line 1 plus
line 2 (b)), (S ee In s tr u c tio n 7 ) ____
4. Lest: Personal e xem p tio n . ( F r o m S c h e d I
u le D -1 )__________________________ $ .
».
Credit for d ep en d en ts.
(F ro m
Schedule D - 2 ) ___________________
P. Less: Item 4 ( a ) , p ag e 1............ .....................
$-
A L T E R N A T IV E
c a p it a l g a in , a n d
c a p it a l lo s s , a n d
(S e e I n s tr u c tio n 7 ) _____
T (a) Net long-term c a p ita l gain (ite m 7
O F
$
ill
Page 4
Schedule H.—PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION.
(See Instruction 8)
( 2 ) n u m b e r of p la ce s of b u s in e s s ____________ ; ( 3 ) business n am e
J3tate (1 ) nature of business _________— r---------|— akk.---------r —
-------------------------
and address if different fro m n a m e a n d ad d re s s on p age
-----------------------------------------------------------------------_ _ _ _ _ _ )
|. Total receipts---------------------------------------------
1
O T H E R B U S IN E S S D E D U C T IO N S
COST O F G O O D S S O L D
»
S a la rie s a n d w ag es n o t in clu d ed a s “ L a b o r ” (d o n o t d e d u c t co m
p e n sa tio n f o r y o u rs e lf)________________________ ______________________
(To be used where inventories are an incomedetermining factor)
I n te r e s t o n bu siness in d e b te d n e ss_____________________________________
2. Inventory a t beginning of y e a r -----------------
ttssS
iMeytatli: J, Merchandise bought fo r sale---------------------
T a x e s o n bu siness a n d b u siness p r o p e r ty _____________________________
L o sse s (e x p la in b e lo w )________________________________________ _________
4. Labor---------- -----------------------------------------------
B a d d e b ts arisin g fro m sa le s o r se rv ic e s ______________________________
5. Material and supplies-----------------------------—
D e p re c ia tio n , o b so le sce n ce , a n d d e p le tio n (e x p la in in S ch e d u le J ) . .
6. Other costs (item ize b elow )----------------------7.
R e n t , re p a irs, a n d o th e r exp en ses (ite m iz e below o r o n s e p a ra te
T otal of lines 2 to 6 _ _ _____________
s h e e t)____________ _____________________________________________________
8. Less inventory a t end of y e a r -------------------
iïÉt«
T o t a l o f lines 11 t o 1 7 __________________________________________
9. N etcostof goods sold (lin e 7 m in u s lin e 8 )_
T o t a l o f lin es 9 a n d 1 8 ___________________:___^_______________
10. Gross profit (line 1 m inus line 9 )_ _ ----------
N e t p ro fit ( o r lo ss) (lin e 1 m in u s line 1 9 ) (e n te r a s ite m 8 , p a g e 1).
L If the production, m a n u fa c tu re , p u rc h a se , o r sa le of m e rc h a n d ise is a n in c o m e -p ro d u c in g f a c t o r , in v e n to rie s a r e re q u ire d .
2 and 8 to indicate w heth er in v en to rie s a r e v a lu e d a t c o s t, o r c o s t o r m a rk e t, w h ich e v e r is low er.
I
E n t e r “ C ,” o r “ C o r M , ” on lines
Explanation of ded uctions c laim e d in lines 6 , 1 4 , a n d 1 7 ----------------------------------- ----------- ;_ _ ____________________________ ______________________________________________________
Schedule I.— INCOME FROM PARTNERSHIPS, FIDUCIARIES, AND OTHER SOURCES
INCOME (OR LOSS) FROM PARTNERSHIPS, SYNDICATES, ETC. (SEE INSTRUCTION 9 (a )) (FURNISH NAMES AND ADDRESSES)
-Mm
INCOME FROM FIDUCIARIES (FURNISH NAMES AND ADDRESSES)
¡fami
noi.
[inj
eli
nbi)L_
ltaliomll
,ailì)Ik
INCOME FROM OTHER SOURCES (STATE NATURE)
¡»■"Sii'f
sili®(MB
pìiistife
l'tfeiapìlJte
T otal am ou n ts in S c h e d u le I . ( E n t e r a s ite m 9 , p a g e 1 ) .
]))£>]0i®|
fflinSctó*
oncaàto
Indènni
lutauitii«!
Schedule J .—EXPLANATION OF DEDUCTION FOR DEPRECIATION CLAIMED IN SCHEDULES F, G, AND H
1
I. Kind of property
(If buildings, state material of which
constructed)
2. Date
acquired
3. Cost or other basis
(Do not include land
or other nondepre
ciable property)
4. Assets fully depre
ciated in use a t end
of year
5. Depreciation al
lowed (or allowable)
in prior years
6. Remaining cost or
other basis to be
recovered
$
$
$
$ -
7. Estimated 8. Estimated
life used in
remaining
accumulat
life from
ing depre
beginning
ciation
of year
9. Depreciation
allowable this
year
$
I ---------------
AFFIDAVIT.
(See Instruction E)
( I f th is r e tu r n w as p re p a re d fo r y o u b y so m e o th e r p e rso n , th e follow ing a ffid a v it m u s t be e x e c u te d )
I/we swear (or affirm) th at I/we prepared this return for the person or persons named herein and that the return (including any
¡accompanying schedules and statements) is a true, correct, and complete statement of all the information respecting the tax liability
F the person or persons for whom this return has been prepared of which I/we have any knowledge.
I**'
Subscribed and sworn to before me this
day
f £
(Signature of person preparing the return)
I of-------------------------- - 194__
(Signature of person preparing the return)
(Name of firm or employer, if any)]
(Signature and title of officer administering oath)
• it
U. S . GOVERNMENT PRINTING O FFIC E: 1941
16— 2 4 2 46
PagJ
15. BAD D E B T S .—E n ter bad debts other than those claimed in
Schedule H. Show in Schedule C : (a) of what the debts consisted;
(6) name and family relationship, if any, of debtor; (c) when created;
(d) when due; (e) efforts made to collect; and (f) how determined to
be worthless. E n ter in Schedule F losses from corporate securities
with interest coupons or in registered form ascertained to be worthless
and charged off within the year, and which are capital assets.
16. O TH ER D ED U CTIO N S.—E n ter other authorized deductions,
including net operating loss deduction allowed by section 23 (s).E very taxpayer claiming a deduction due to a net operating loss for
the preceding taxable year or years shall file with his return the state
ment required by section 19.122-1, Regulations 103.
Do not deduct losses in transactions not connected with your trade
or business or not entered into for profit. Losses from wagering
transactions are allowable to the extent of gains therefrom.
20,21. CRED IT FO R PERSO N A L EXEM P T IO N AND D EPEN D
E N T S .—A single person, or a married person not living with spouse,
is allowed a personal exemption of $750. A person who, during the
entire taxable year, was the head of a family or was married and living
with spouse, is allowed an exemption of $1,500. On separate returns,
the personal exemption m ay be taken by either husband or wife or
divided between them in any proportion.
A “head of a family” is one who supports in one household one or
more dependent individuals closely connected with him by blood
relationship, relationship by marriage, or by adoption, and whose right
to exercise family control is based upon some moral or legal obligation.
A credit of $400 is allowed for each person (other than husband or
wife) under 18 years of age, or incapable of self-support because men
tally or physically defective, whose chief support was received from
the taxpayer. If taxpayer is head of a family only because of depend
ents for whom he would be entitled to credit under preceding sentence,
$400 credit is allowed for each of such dependents except one.
If taxpayer’s status, with respect to personal exemption and credit
for dependents, changed during the taxable year, such exemption and
credit shall be apportioned according to the number of months before
and after such change. A fractional p art of a month is disregarded
unless it exceeds half a month, when it shall be considered a month.
24. EARNED IN CO M E C R E D IT .— “ Earned income” means wages,
salaries, professional fees, and other amounts received as compensation
for personal services actually rendered. Where a taxpayer is engaged
in a trade or business in which both personal services and capital are
material income-producing factors, a reasonable allowance as compen
sation for the personal services actually rendered by the taxpayer, not
in excess of 20 percent of his share of the net profits of such trade or
business, shall be considered as earned income. “ Earned net income”
means the excess of the amount of the earned income over the sum of
the “earned income deductions,” which are the ordinary and necessary
expenses properly chargeable against earned income.
27. SUR TA X.—The following table shows the surtax due for the
taxable year upon certain specified amounts of surtax net income.
SURTAX TABLE
I f the surtax n et Income is :
T h e surtax shall b e :
N ot over $2,000______________________________ 6% of the surtax net income.
Over $2,000 b ut not over $4,000_______________ $120, plus 9% of excess over $2,000.
Over $4,000 b u t not over $6,000__ , ___________ $300, plus 13% of excess over $4,000.
Over $6,000 b u t not over $8,000—. . . - _________ $560, plus 17% of excess over $6,000.
Over $8,000 b u t not over $10,000,—. . __________ $900, plus 21% of excess over $8,000.
Over $10,000 b u t n ot oyer $12,000_____________ $1,320, plus 25% of excess over $10,000.
Over $12,000 b u t not over $14,000__ __________ $1,820, plus 29% of excess over $12,000.
Over $14,000 b u t not over $16,000_____________ $2,400, plus 32% of excess over $14,000.
Over $16,000 b u t not over $18,000________ ____ $3,040, plus 35% of excess over $16,000.
Over $18,000 b u t not over $20,000_____________ $3,740, plus 38% of excess over $18,000.
Over $20,000 b ut not over $22,000_____________ $4,500, plus 41% of excess over $20,000.
Over $22,000 b u t not over $26,000__________ ___$5,320, plus 44% of excess over $22,000.
Over $26,000 b u t not over $32,000_____________ $7,080, plus 47% of excess over $26,000.
Over $32,000 b u t n ot over $38,000_____________ $9,900, pljis 50% of excess over $32,000.
Over $38,000 b u t not over $44,000_____________ $12,900, plus 53% of excess over $38,000.
Over $44,000 b u t not over $50,000_____________ $16,080, plus 55% of excess over $44,000.
Over $50,000 b u t not over $60,000_____________ $19,380, plus 57% of excess over $50,000.
Over $60,000 b u t not over $70,000_____________ $25,080, plus 59% of excess over $60,000.
Over $70,000 b u t not over $80,000_____________ $30,980, plus 61% of excess over $70,000.
Over $80,000 b u t n ot over $90,000_____________ $37,080, plus 63% of excess over $80,000.
Over $90,000 b u t n ot over $100,000____________ $43,380, plus 64% of excess over $90,000.
Over $100,000 b u t not over $150,000___________ $49,780, plus 65% of excess over $100,000.
Over $150,000 b u t not over $200,000_______ ___ $82,280, plus 66% of excess over $150,000.
Over $200,000 b u t not over $250,000_________ . . $115,280, plus 67% of excess over $200,000.
Over $250,000 b u t n ot over $300,000___________ $148,780, plus 69% of excess over $250,000.
Over $300,000 b ut not over $400,000___________ $183,280, plus 71% of excess over $300,000.
Over $400,000 b u t not over $500,000----------------- $254,280, plus 72% of excess over $400,000.
Over $500,000 b u t n ot over $750,000----------------- $326,280, plus 73%.of excess over $500,000.
.Over $750,000 b u t not over $1,000,000---------------$508,780, plus 74% of excess over $750,000.
Over $1,000,000 b u t not over $2,000,000------------ $693,780, plus 75% of excess over $1,000,000.
Over $2,000,000 b u t not over $5,000,000------------ $1,443,780, plus 76% of excess over $2,000,000.
Over $5,000,000.............................................................. $3,723,780, plus 77% of excess over $5,000,000.
30. INCOM E TAX PAID AT SO U R C E.—E n ter 2 percent of interest
on bonds on which Federal income tax was paid by debtor corporation.
31. FO REIG N TAX C R ED IT.— If credit is claimed for taxes paid to a
foreign country or possession of United States, submit Form 1116 and
receipts for such payments. If credit is claimed for taxes accrued,
a tta ch -to Form 1116 certified copy of return on which tax was based.
IN S T R U C T IO N S B E L O W N E E D B E C O N S ID E R E D O N LY I F ENTRIES
A R E M A D E IN I T E M S 7, 8, AND 9, P A G E 1 O F R E T U R N .
7. GAINS AND LO SSES FRO M SALES OR EXCHANGES OFLi
CAPITAL ASSETS AND O TH ER P R O PER T Y. -Report details ij
Schedules F and G.
“ Capital a ssets” defined.—The term “ capital assets” means pronJ
erty held by the taxpayer (whether or not connected with his traM
or business), but not stock in trade or other property of a kind whictl
would properly be included in his inventory if on hand a t the closed
the taxable year, or property held by the taxpayer primarily for salett
customers in the ordinary course of his trade or business, or proper®
used in the trade or business of a character which is subject to the allow]
anee for depreciation provided in section 23 (1), or an obligation of this
United States or any of its possessions, or of a State or Territory ®
any political subdivision thereof, or of the D istrict of Columbia, issue*
on or after March 1, 1941, on a discount basis and payable withoul
interest a t a fixed m aturity date not exceeding one year from the date
of issue.
Description of property. —State following facts: (a) For real estate,
location and description of land and improvements; (b) for bondsor
other evidences of indebtedness, name of issuing corporation, particular
issue, denomination and amount; and (c) for stocks, name of corpora]
tion, class of stock, number of shares, and capital changes affecting
basis (including nontaxable distributions).
B asis.—In determining GAIN in case of property acquired before
March 1, 1913, use the cost or the fair m arket value as of March 1.
1913, adjusted as provided in section 113 (b), whichever is greater, but
in determining LOSS use cost so adjusted. If the property was a
rs
quired after February 28, 1913, use cost, except as otherwise p
rovided!
in section 113.
Losses on securities becoming worthless.—If (1) shares of stoelp
become worthless during the year or (2) corporate securities witlf
interest coupons or in registered form are ascertained to be worthier
and charged off during the year, and are capital assets, the loss there]
from shall be considered as from the sale or exchange of capital asset!
as of the last day of such taxable year.
Classification of capital gains and losses.—The phrase “short-ternn
applies to gains and losses from the sale or exchange of capital asset®
held for 18 months or less; the phrase “long-term” to capital asset®
held for more than 18 months.
Limitation on short-term capital losses.—Short-term capital losses
shall be allowed only to the extent of short-term capital gains. How
ever, any net short-term capital loss (not in excess of the net income]
for the year involved) may be carried over in the succeeding year and
applied against the short-term capital gains not already offset by short*!
term capital losses in such year. The carry-over is restricted to 1 year]
Alternative ta x .—In the case of a net long-term capital gain or loss,
an alternative tax may be imposed in lieu of the normal tax and surtai;
imposed upon net income. (See Computation of Alternative Tax, Sched*j
ule F .) In calculating the alternative tax in the case of a long-termj
capital loss, the base (1) for computing the 15 percent limitation witfl
respect to the deduction for charitable contributions is the “ordinarjj
net income” as shown in line 3, Computation of Alternative Taf
Schedule F , increased by item 11, page 1, and (2) for computing
earned income credit is the “ordinary net income” as adjusted for th^
charitable contributions deduction.
“ W ash sales” losses.—Loss from sale or other disposition of stock or securities cam
deducted unless sustained in connection with the taxpayer’s trade or business, if, within!):
days before or after the date of sale or other disposition, the taxpayer has acquired (by p®
chase or b y an exchange upon which the entire amount of gain or loss was recognized by lari
or has entered into a contract or option to acquire, substantially identical stock or securities
Losses in transactions betw een certain persons.—No deduction is allowable for losses irony
sales or exchanges of property directly or indirectly between (a) members of a family, (i)J
corporation and an individual owning more th an 50 percent of its stock (liquidations el!
cepted), (c) a grantor and fiduciary of any tru st, or (d) a fiduciary and a beneficiary oftlitj
same trust.
8. BU SIN ESS OR P R O FE SS IO N .—Fill in Schedule H. Farmed
keeping no books of account, or books on cash basis, must attacj
Form 1040F. A taxpayer electing to include in gross income amounts]
received during the year as loans from the Commodity Credit Con
poration should file with his return a statem ent showing the detail]
of such loans. (See section 123.)
If installment method is used, attach schedule showing separately
for years 1938, 1939, 1940, and 1941: (a) Gross sales; (b) cost of g<
sold; (c) gross profits; (d) percentage of profits to gross sales;
amount collected; (/) gross profit on amount collected.
Bad debts m ay be deducted either (1) when ascertained to be wholly
or partially worthless, or (2) by a reasonable addition to a reservff
(No change of method without permission of Commissioner.)
9 (a). IN CO M E FRO M PA R TN ERSH IPS, FIDUCIARIES, ETC,
W H O SE TAXABLE YEAR ENDS W ITHIN TH E TAXABLE YEA!
COVERED BY TH IS R ETU R N .—E n ter as item 9 your share o!
profits (whether received or not) or losses of a partnership (including
a syndicate, pool, etc., not taxable- as a corporation) except capita]
gains and losses, which enter in Schedule F . Enter as item 9 incoffij
from an estate or trust. E n te r in Schedule A your share of interef
on obligations of the United States and instrumentalities, issued prior fl
March 1,1 9 4 1 , owned by partnership, estate, or trust. Include in iten
11, and explain in Schedule C, your share of any contribution or gift
paym ent of which was made by the partnership within its taxabl
year. E n ter in items 30 and 31, respectively, your share of credits foi
Federal income ta x paid a t source and foreign income taxes.
9 (b). O TH ER IN C O M E.—E n ter any other taxable income,'hi
eluding earnings of minor children if parent is legally entitled thereto
U. S. GOVERNMENT PRINTING OFFICE: 1941
IS — 24246
■
Kbl*»
¿nuci
:
lid-EXPIA
INSTRUCTIONS FOR FORM 104», UNITED STATES INDIVIDUAL INCOME TAX RETURN
(Reference? are to the Internal Revenue Code, unless otherwise noted)
GENERAL INSTRUCTIONS
I A, W H O M U S T M A K E A R E T U R N . — E very citizen and resident
;
United States having during the taxable year gross income (in
come derived from any source whatever, unless exem pt from ta x by
Haw) in an amount specified below, regardless o f the amount o f net income,
bhall make a return if:
f (1) Single for entire year , or m arried and not living with husband or
¡wife for any part o f the taxable year. If having a gross income of $750
©r over.
(2)
t
t
Married and living with husband or wife fo r the entire taxable year.
If each has income and their combined gross income is $1,500 o r over,
i they must each make a return or file a joint return. If only one has
income and his gross income is $1,500 or over, only th a t one is required
to make a return.
(3)
' year.
Married and living with husband or wife fo r only part o f the taxable
I f e a c h h a s i n c o m e a n d t h e i r c o m b i n e d g r o s s i n c o m e is $ 1 , 5 0 0 o r
over or equal to, or in excess of, their total personal exemption (not
i including credit as head of a family or for dependents), they m ust each
i make a return or file a joint return. If only one has income and his
[gross income is $1,500 or over, or equal to, or in excess of, his personal
[exemption (not including credit as head of a family or for dependents),
[only that one is required to make a return. (See Specific Instruction
120 as to personal exemption.)
I Joint return.—M ay be filed by husband and wife only if they are
¡(1) both citizens or residents of the United States and (2) living together
fat the end of the taxable year. A joint return is permissible even
though one has no gross income. In a joint return the aggregate
Iincome, deductions, and credits are computed as though husband and
[ wife were one person.
[ Deceased individuals.— Return required on Form 1040 or 1040A if
gross income to date of death is $750 or over, if single, or married and
1 not living with spouse for any part of the taxable year, or equal to, o f in
I excess of, credit for personal exemption (not including credit as head of
»family or for dependents), if married and living with spouse for all or
sny part of the taxable year. The return for a decedent shall include
[ all items of income and deductions accrued up to the date of death,
[regardless of the fact th a t the decedent m ay have kept his books on a
[cash basis or kept no books.
I B. F O R M O F R E T U R N . —Citizens and resident alien individuals
[use Form 1040, except th a t those whose gross income is not more than
[$3,000 and consists wholly of salaries, wages, other compensation for
¡personal services, dividends, interest, rent, annuities, or royalties may
¡use optional Form 1040A. Nonresident aliens use Form 1040B or
11040NB. Fiduciaries forestates and trusts use Form 1041.
I C. F I L IN G O F R E T U R N S A N D P A Y M E N T O F T A X . — File on or
|before. 15th day of 3d month following close of taxable year with
collector for the district in which the taxpayer has his legal residence
or principal place of business. If the taxpayer has no legal residence
or place of business in United States, file with collector a t Baltim ore,
Md. The taxpayer's home address m ust be given and a permanent
business address may be added. P ay in cash a t collector’s office or
by check or money order payable to “ Collector of Internal Revenue.”
Pay in full with return or in four equal installments, on or before the
15th day of the 3d, 6th, 9th, and 12th month from close of taxable year.
D.
PENALTIES.— Severe penalties are imposed for failing to file a
required return, for late filing, and for filing a false or fraudulent return.
Page 1
1941
E . A FFID A V ITS.—Return must be sworn to by taxpayer or his
agent. R eturn m ay be made by agent if taxpayer (1) is too ill to
'make it or (2) is absent from United States for 60 days before due
date. Power of attorney on Form 935 or 936 (husband and wife)
m ust accom pany return made by agent. Person (other than ta x
payer) preparing return m ust execute affidavit on page 4. Return
m ay be sworn to before any collector, deputy collector, o r internal
revenue agent (without charge), or other person authorized by law
to administer oaths for general purposes, except taxpayer’s agent.
F . R EC EIV ED OR ACCRUED IN C O M E.— If books are kept on
accrual basis, report all income accrued, even though n ot received,
and expenses incurred even though not paid. If books are not kept
on accrual basis, o r if no books are kept, report all income actually or
constructively received, and all expenses paid.
G. IT E M S E X E M P T FR O M TA X.—As to items of income exem pt
from tax other than those listed below, see sections 22 (b) and 116.
1. Interest on governmental obligations is exempt to the extent
indicated in Schedule A.
2. P roceeds of insurance policies. —The proceeds of life insurance
policies, paid by reason of the death of the insured, are exempt. If any
p art of the proceeds is held by the insurer under an agreem ent to pay
interest, the interest is taxable. Amounts received under a life insur
ance or endowment policy, not payable by reason of the death of the
insured, are not taxable until the aggregate of the amounts received
exceeds the premiums or consideration paid for the policy. See Specific
Instruction 6 as to taxation of annuities.
3. Miscellaneous item s wholly exempt from ta x :
(а) Gifts (not received as a consideration for service rendered) and
money and property acquired by bequest, devise, or inheritance (but
income therefrom is taxab le);
(б) Amounts received through accident or health insurance or under
workmen’s compensation acts, as compensation for personal injuries or
sickness, plus the amount of any damages received, whether by suit or
agreement, on account of such injuries or sickness;
(e) T he rental value of a dwelling house and appurtenances thereof
furnished to a minister of the gospel as p art of his compensation;
(d) Pensions and compensation received by veterans from the United
States and pensions received from the United States by the family of a
veteran, for services rendered by the veteran in time of w ar; and
(e) Interest on adjusted service bonds and interest credited to postal
savings accounts deposited prior to M arch 1, 1941.
H . D E P R E C IA T IO N AND D E P L E T IO N .—A reasonable allowance for exhaustion, wear
and tear, including obsolescence, of property used in trade or business m ay be deducted,
based on cost if acquired b y purchase after Febru ary 28,1913. If acquired before M arch 1,
1913, or otherwise than b y purchase, see section 114.
For depletion deduction, see sections 23 (m) and 114 and Regulations 103.
I . IN F O R M A T IO N A T S O U R C E .—E v e ry person m aking paym ents of (1) interest, rents,
commissions, or other fixed or determ inable income of $750 or more dinring the. calendar year
1941 to an individual, a partnership, or a fiduciary, or (2) salary or wages of $750 or more to a
single person or $1,500 or more to a married person shall make a return on Form s 1096 and 1099.
.
3 S T O C K O W N E D IN F O R E IG N C O R P O R A T IO N S A ND P E R S O N A L H O L D IN G
C O M P A N IE S .— If a t any tim e during th e year you owned directly or indirectly stock of a
foreign corporation, or a personal holding com pany (section 501), attach a statem ent showing
name and address of each such com pany and total num ber of shares of each class of outstand
ing stock owned. If at any tim e during th e year you owned stock in a foreign personal
holding company (section 331), include m income as a dividend th e am ount required b y
section 337, and if you owned 5 percent or more in value of the outstanding stock of such com
pany, attach a statem ent giving in detail the information required b y section 337 (d ).
SPECIFIC INSTRUCTIONS
(Numbered to correspond with item numbers on page 1 of return)
1. SALARIES, ETC. —Include compensation received as an officer or
i «reployee of a State or political subdivision or any agency or instru
mentality thereof.
! 2. DIVIDENDS.—E n ter total of all taxable dividends. E n te r in
Schedule A dividends on share accounts in Federal savings and loan
associations.
5. RENTS AND R O Y A L T IE S.—Include rent received in property
or crops. Report, crops received bn crop-share basis in year in which
disposed of (unless return is made on accrual basis).
6. ANNUITIES.—Amounts received as an annuity under an
tenuity or endowment con tract shall be included in gross income to
the extent of 3 percent of the aggregate premiums or consideration
P™ f°r such annuity. If the aggregate of the amounts received and
excluded from gross income equals the aggregate premiums or considwation paid for such annuity, the entire amount thereafter received
pnust be included in gross income.
the benefit of any private shareholder or individual, and no substantial part of the activities
of w hich is carrying on propaganda, or otherwise attem pting, to influence legislation;
(6) T h e U nited States, any State, Territory , or any political subdivision thereof, or the
D istn et of Colum bia, or any possession of the U nited States, for exclusively public purposes;
(c) T h e special fund for vocational rehabilitation authorized b y section 12 of the World
W ar Veterans’ A ct, 1924;
(d) Posts or organizations of war veterans, or auxiliary units or societies of a n y such posts
or organizations, if. such posts, organizations, units, or societies are organized in the U nited
States or any of its possessions, and if no part of their net earnings inures to th e benefit of
any private shareholder or individual; or
(e) A domestic fraternal society, order, or association, operating under the lodge system ,
b u t only if such contributions or gifts are to be used exclusively for religious, charitable, scien
tific, literary, or educational purposes, or for the prevention of cruelty to children or animals.
12. IN T E R E S T . —E n ter interest on personal indebtedness as dis
tinguished’ from business indebtedness (which should be entered in
Schedules B and H ). F o r limitations on deductions for unpaid
expenses and interest, see section 24 (c).
13. T A X E S .— E n ter taxes imposed on you and paid or accrued
during the taxable year, except taxes entered in Schedules B and H .
Do not include taxes assessed against local benefits, Federal income
F O R IN S T R U C T IO N S 7, 8, AND 9,
taxes o r estate, inheritance, legacy, succession, gift taxes, taxes
S E E P A G E 2, S E C O N D C O L U M N .
imposed on your interest as shareholder of a corporation which are
paid by the corporation without reimbursement from you, nor income
11.
CONTRIBUTIONS P A ID .—E n ter (not to exceed 15 percent of taxes claimed as a credit in item 31. Federal social security and em
onnt k6*-’ncome comPuted without the benefit of this deduction)
ployment taxes paid by or for an employee are not deductible by the
ontnbutions or gifts, paym ent of which was made within the year
employee.
w or for the use of—
14. L O S S E S .—E n ter property losses (not claimed in Schedule H ),
the°!Wo?ir c?r?tion’ ! rust’ or com m unity chest, fund, or foundation, created or organized in
from fire, storm , shipwreck, or other casualty, or from th eft, not com
anvStato«. mtes ?r m any Possession thereof or under the law of th e U nited S tates or of
pensated for by insurance or otherwise. Explain in Schedule C, giving
m/inri- i - ”. Territory or of any possession of the U nited States, organized and operated
DrevpiS 2*. rell&|ous, charitable, scientific, literary, or educational purposes, or for the
description of property, date acquired, co st, subsequent improvements,
11011 °* cruelty to children or animals, no part of the net earnings of which inures to
depreciation allowable, insurance, salvage value, and deductible loss.
1
> 7
,<=#
^
1
2
c| £2j2a ^
cv-§
frxjp |1 I
I
¿ÊAT^
The Bureau of Internal Revenue
deficiency to
today
sent notices of
2r
J
three additional ; X - '"bondholders
4( f the Port of ^ew
.
■■
-.-/;;':v;.;. /-v : ;
York Authority
--
\ *
•
who had not included interest from their bonds in
their tax returns
filed
on March 15,1938 •
The action was tkken in connection with a test case
\
intended ultimately to prove in the court^
Government
has the
that the Federal
right under the Constitution
from state and municipal
to
securities.
tU
tax the income
%
,
,
/t
The bureau’ s f ir s t step tfas taken on March 14, 1941.
^
V
whennotices of deficiency were
A^ j
VulA Vi
Vr s*_
''frjJ.
sent fro sere«;«
- j___ ^..„„Iitipir-.uj II IJ. i rn~|j_.-^1 Iip-i»'■I , X
¿s***'
’.U-~ll»llr9.’t trii"l111 Il*H"—**-**"""
->
mdhfPdrrrri
nf
thiî
Six of the seven bondholders paid the ta± deficiency
I
claimed by the Treasury Department •
.. io Commissioner
A A A Î t v “^ J L
Authority^ n ^ d
of the
*Ê
on June 5, i941. The ^Bureau #4-fr<
¿¡U<
to fhis
appeal on June 25.
Today’ s action was taken because *ef th^'nlnath last wosli
— — —
nf
¿¿¿v*«* ■
J
**1 "1 o of the ^ureau^tfiacertain whether
'
executors
of Mr* Shamberg's estate would continue the litig atio n * ajanfr"S«fr» thia
additional notices of dijflclijricy in uriler 115— "prggg 1Liifj usme^tO
&.
final flprH aixLXk^Jam ..........-» m
..
----
< w
*
T R E A S U R Y D EPARTMENT
Washington
Press Service
No. 2S-59
FOR IMMEDIATE RELEASE,
Tuesday, No v e m b e r 25» 19^1.
The B u r e a u of Internal R e v e n u e today sent notices of d e f i
ciency to three
additional b o n d h o l d e r s
Authority who h ad not included interest
tax returns filed on M a r c h 15;
of the Port of N e w Yor k
from their bonds
in their
193&*
The action was taken in c o n n e c t i o n w i t h a test case intended
ultimately to prove in the courts that the Federal Government has
the right u n der the C o n s t i t u t i o n to t ax the income from State and
municipal securities.
It was c o n s i d e r e d n e c e ssary b e c a u s e of the
death last w e e k of A l e x a n d e r J. Shamberg, only one of seven b o n d
holders o r i g i n a l l y sent nin e t y - d a y letters who p r o t e s t e d the
assessment,
The B u r e a u ’s first step in the Port of N e w Y o r k A u t h o r i t y
case was taken on M a r c h 1^, 19^1, whe n the notices of d e f i c i e n c y
were sent out.
S i x of the seven b o n d h o l d e r s p a i d the tax
deficiency c l a i m e d b y the T r e a s u r y Department..
The late Mr„
Shamberg, then a C o m m i s s i o n e r of the Authority, filed an answer
with the B o a r d o f T a x Appeals on June 5, 19^1.. The B u reau r e p l i e d
to his appeal on June 25*
T o d a y ’s acti o n was taken b e c a u s e officials of the B u reau
were uncertain w h e t h e r executors of Mr. S h a m b e r g 1s estate w o u l d
continue the litigation.
-oOo-
TREASURY DEPARTMENT
Washington
Prass Service
FOR RELEASE, MORNING NEWSPAPERS,
Bcmad^r 25. X 9 U . ____
a.?'- <s> v
The Secretary of the Treasury announced last evening that the tenders for
$200,000,000, or thereabouts, of 91-day Treasury bills, to be dated Woveaber 26,
1941, and to nature February 25, 1942, which were offered on Moveaber 21, were
opened at the Fédéral Reserve Banka on Boreaber 24*
The details of this issue are as feHows»
Total applied for - <466,603,000
Total accepted
~ 200,026,000
Range of accepted bidet (Excepting two tenders totaling $30,000)
High
Low
Average price
- 99*977
- 99*926
- 99*932
Equivalent rate approxiaately 0*091 percent
»
«
0*393
*
«
«
»
0.267
*
(30 percent of the aaount bid for at the low price was accepted)
T R E A S U R Y D EPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Tu e s d a y , N o v e m ber 2 5 1 1 9 P I <>______
Press Service
N o . 2S-60
The Sec r e t a r y of the Tr e a s u r y a n n o u n c e d last evening that
the tenders
hills,
for $200,000,000,
or thereabouts,
t o be d a t e d N o v ember 2 6 ,
of 9 1 ~ & a y T r e a s u r y
and t o mature February 2 5 ,
19^1,
]_q ]|2, w h i c h wer e o f f e r e d on N o v e m b e r 21,
were opened at the .
Federal R e s e r v e B a nks on N o v ember 2^*
The details
of this
issue are as followst
Total a p p l i e d for - $L 66 ,603,000
Total a c c e p t e d
200,026,000
Range of a c c e n t e d bids:
( Excepting two tenders totaling
$ 30 , 000 )
- 99*9/7 Equivalent
High
- 99.
,926
11
Low
Average
P r i^ © - 9 9 . 9 7 2
nercent
rate
I!
appro x i m a t e i y
11
H
0.091 percent
0.293
0.267
of the amount b i d for at the low price was
-0 O 0 -
it
11
accepted)
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday,
N o v e m b e r 2b,
19 *1 1 .
P r ess
No.
Service
2&-61
The B u r e a u of Customs a n n o u n c e d t o day that equal opportunities
will be a f f o r d e d at all customs ports of entry for the filing of
entries and w i t h d r a w a l s for c o n s u m p t i o n at the o p e n i n g moment of
the import q u o t a pe r i o d s for silver or black, foxes, furs
and
articles p r o v i d e d for in the s u p p l e m e n t a r y trade a g r eement with
^ an^ a > <s i gned on Dec e m b e r 1 3 , 19 ^-0 . P r o v i s i o n will be made to
enable importers to file entries a nd w i t h d r a w a l s for consumption
t h e refor at 12 noon, E a s t e r n S t a n d a r d Time; 11 A.M., Central Standard
Time, 10 A. M., MoupiVflln S t a n d a r d Time; and 9 A. M., Pa c i f i c Standard
The s u p p l e m e n t a r y "agreement p r o v i d e s for quotas l i m i t i n g the
quantities of s i lver or b l a c k foxes v a l u e d at less than $260 each
and whole silver or b l a c k fox furs and skins (with or without paws
tails, or heads), and quotas for o t h e r classes of silver or black *
fox articles w h i c h may be entered, or w i t h d r a w n f rom * warehouse.
2o n s u m p t i o n <^u r ^ ng an y t w e l v e - m o n t h p e r i o d c o m m e n c i n g December 1
and f u rther p r o v i d e s that not more than 25 p e r c e n t of the annual
^or s ^ v e r or* b l a c k foxes, furs a nd skins m ay be entered, or
w i t h d r a w n fro m warehouse, for eonsumr>tinn
«««•
i
iul'
ooutii- a r n c x e s
are not r e s t r i c t e d on a m o n t h l y basis.
The customs o f f icers in charge at ports w h ere entries or with
drawals are p r e s e n t e d will report their p r e s e n t a t i o n to the Bureau
of Customs for a d v i c e as to t h e i r q u o t a status.
The acceptance of
entries wii l be a u t h o r i z e d w i t h i n the q u o t a l i m i t a t i o n s in the order
of the time of t h eir p r e s e n t a t i o n in p r o p e r form, on or after the
o p e n i n g of a q u o t a period, at the c u s t o m h o u s e in the port where the
ar
cles have arrived.
If entries a nd w i t h d r a w a l s for consumption
p r e s e n t e d at the o p e n i n g moment of a q u o t a p e r i o d cover quantities
in excess of the q u ota limitation, the q u a n t i t y w h i c h m a y be admit
ted to entry u n d e r the q u o t a w i l l be p r o r a t e d on the b a sis of the
q u a n t i t y p r e s e n t e d for entry.
Quota p r i o r i t y permits will not be granted.
No entry or with
drawal will be r e g a r d e d as f i led for q u o t a p u r p o s e s unless filed in
p r o p e r form*
No q u o t a status wil l a t t a c h in any q u o t a p e r i o d by
r e a s o n of the p r e s e n t a t i o n of an entry or w i t h d r a w a l in any prior
period.
* *
-oro
Please substitute accompanying release, Press Service No,
2S-6l
, for one of same number mailed earlier, and note inclusion
of date
M December 1, 1 9 ^ 1 * - , at end of first paragraph.
f
-
2
-
The customs officers in charge at ports where entries or
withdrawals are presented will report their presentation to the
Bureau of Customs for advice as to their quota status.
The accept
ance of entries will be authorized within the quota limitations in
the order of the time of their presentation in proper form, on or
after the opening of a quota period,at the customhouse in the port
where the articles have arrived.
If entries and withdrawals for
consumption presented at the opening moment of a quota period cover
quantities in excess of the quota limitation, the quantity which
may be admitted to entry under the quota will be prorated on the
basis of the quantity presented for entry.
Quota priority permits will not be granted.
No entry or with
drawal will be regarded as filed for quota purposes unless filed in
proper form.
No quota status will attach in any quota period by
reason of the presentation of an entry or withdrawal in any prior
period.
PRESS RELEASE
The Bureau of Customs announced today that equal opportunities
will be afforded at all customs ports of entry for the filing of
entries and withdrawals for consumption at the opening moment of
the import quota periods for silver or black foxes, furs, «nd
articles provided for in the supplementary trade agreement with
Canada, signed on December 13, 1940.
Provision will be made to
enable importers to file entries and withdrawals for consumption
therefor at 12 noon, Eastern Standard Time; 11 A. M . , Central Stan
dard Time; 10 A. M . , Mountain Standard Time; and 9 A. M . , Pacific
Standard Time.
The supplementary agreement provides for quotas limiting the
quantities of silver or black foxes valued at less than #250 each
and whole silver or black fox furs and skins (with or without paws,
tails, or heads), and quotas for other classes of silver or black
fox articles which may be entered, or withdrawn from warehouse, for
consumption during any twelve-month period commencing December 1,
and further provides that not more than 25 percent of the
quotas for silver or black foxes, furs and skins may be entered, or
withdrawn from warehouse, for consumption during any month.
Provision
will, therefore, also be made for simultaneous openings, at the hours
specified above, of these monthly quota periods on January 2, Febru
ary 2, and March 2, 1942.
Imports under the annual quotas for the
other articles are not restricted on a monthly basis.
T R E A S U R Y DEPARTMENT
Washington
Please
substitute a c c o m p a n y i n g release,
2£$-6l, for one of same number m a i l e d earlier,
of date "December 1,
19^1."
Press Service No.
and note
at end of first paragraph.
0O 0-
inclusion
T R E A S U R Y D EPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, N o v e m b e r 2b,
Press Service
No. 22>-6l
19^-1.
The B u r e a u of Customs a n n o u n c e d today that eQ.ua! opportunities
will he af f o r d e d at all customs ports of entry for the filing of
entries and w i t h d r a w a l s for c o n s u m p t i o n at the opening moment of
the import q u o t a periods for silver or b l a c k foxes, furs, and
articles p r o v i d e d for in the s u p p l e m e n t a r y trade agreement wit h
Canada, s i g n e d on December 1 3 , 19^0.
P r o v i s i o n will be made to
enable importers to file entries and w i t h d r a w a l s for cons u m p t i o n
therefor at 12 noon, Eastern S t a n d a r d Time; 11 A.M., Central S t a n
dard Time; 10 A . M , , M o u n t a i n S t a n d a r d Time; and 9 A.M,, P a c ific
Standard Time, D e c ember 1, 19^1.
The s u p p l e m e n t a r y agreement p r o vides for quotas li m i t i n g the
quantities of silver or b l a c k foxes v a l u e d at less than $2^0 each
and whole silver or b l a c k fox furs and- skins (with or without paws,
tails, or heads ), and. quotas for other classes of silver or b l a c k
fox articles w h i c h may be entered, or w i t h d r a w n from warehouse,
for c onsumption d u r i n g any t w e l v e - m o n t h p e r i o d commencing De c e m b e r 1
and further pro v i d e s that not more than 25 percent of the annual
quotas for silver or b l a c k foxes, furs and skins may be entered, or
withdrawn fro m warehouse, for c o n s u m p t i o n during any month.
Pro
vision will, therefore, also be made for simultaneous openings, at
the hours s p e c i f i e d above, of these m o n t h l y quota periods on J a n u
ary 2, F e b ruary 2, and M a r c h 2, 19^-2.
Imports under the annual
quotas for the other articles are not. r e s t r i c t e d on a m o n t h l y basis.
The customs officers in charge at ports where entries or w i t h
drawals are p r e s e n t e d wil l report their p r e s e n t a t i o n to the B u r e a u
of Customs for advice as to their quota s t a t u s ... The acceptance of
entries will be .authorized w i t h i n the quota l imitations in the order
of the time of their p r e s e n t a t i o n in p r o p e r form, on or after the
opening of a quota period, at the customhouse in the port where the'
articles hav e arrived-,.
If entries and w i t h drawals for cons u m p t i o n
presented at the o p ening moment of a q u o t a p e r i o d cover quantities
in excess of the quota limitation, the quantity w h i c h may be a d m i t
ted to entry under the quota will be p r o r a t e d on the basis of the
quantity p r e s e n t e d for entry.
Quota p r i o r i t y permits will not be granted.
No entry or w i t h
drawal will be r e g a r d e d as filed for q u ota purposes unless f i led in
proper form.
No q u o t a status w ill attach in any q u o t a p e r i o d b y
reason of the p r e s e n t a t i o n of an entry or with d r a w a l in any p r i o r
period.
0O0-
- 3 -
panies) issued hereunder need Include in his incone tax return only the
difference between the price paid for such bills, whether on original
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss.
Treasury Department Circular So. 418, as amended, and this
notice, prescribe the terras of the Treasury bills and govern the condi
tion of their Issue.
Copies of the circular may be obtained from any
Federal Reserve Bank or Branch.
-
2
-
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect
shall be final.
Payment of accepted tenders at the prices offered must be
Bade or completed at the Federal Reserve Bank in cash or other immediately
available funds on December 3, 1941, provided, however, any qualified deposi
tary will be permitted to make payment by credit for Treasury bills allotted
to it for itself and its customers up to any amount for which it shall be
qualified in excess of existing deposits when so notified by the Federal Re
serve Bank of its district.
The income derived from Treasury bills, whether interest or gain
from the sale or other disposition of the bills, shall not have any exemption,
as such, and loss from the sale or other disposition of Treasury bills shall
not have any special treatment, as such, under Federal tax Acts now or here
after enacted.
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exsapt from all
taxation now or hereafter imposed on the principal or interest thereof by
any State, or any of the possessions of the United States, or by any local
foTHng authority.
For purposes of taxation the amount of discount at which
Treasury b i n » are
o r ig in a lly
to be interest.
sold by the United States shall be considered
Under Sections 42 and 117 (a) (1) of the Internal Revenue
Code, as amended by Section 115 of the Revenue Act of 1941, the amount of
discount at which bills Issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are excluded from consideration as capital assets.
Accordingly, the owner of Treasury bills (other than life insurance
cosh
rALBBAi
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, November 28, 19A1_____ .
The Secretary of the treasury, hy this public notice, invites tenders
for $ 200,000,000
or thereabouts, of
91-day Treasury hills, to he issued
on a discount basis under competitive bidding.
be dated December 3« 194-1
and will mature
The bills of this series will
March A, 19A2______________ ,
when the face amount will be payable without interest.
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o*clock p. m,, Eastern Standard time, Monday, Decemberi, 19A l . :
i|ppc
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 10 percent of the
face amount of Treasury bills applied for, unless the tenders are accompanied by
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federaj
7s ¡¡I b
1 1 1
TREASURY D E P A RTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Friday, November 2g, 19^-1.
The S e c r e t a r y of the Treasury, b y this public notice,
invites tenders for $200,000,000, or thereabouts, of 9 1 -day
Treasury bills, to be issued on a discount basis under c o m p e
titive bidding.
The bills of this series will be d a t e d
December 3, 195-1, and will mature M a r c h 4-, 19^2, w h e n the face
amount will be payable without interest.
T h e y will be i s sued
in bearer for m only, and in denomi n a t i o n s of $1,000, $5,000,
$10,000, $100,000, $ 500 , 000, and $ 1 , 0 0 0 , 0 0 0 (maturity value).
Tenders will be r e c e i v e d at Federal R e s erve Banks and
Branches up to the closing hour, two o'clock p. m., E a stern
Standard time, Monday, December 1, 1941.
Tenders w ill not be
received at the T r e a s u r y Department, Washington,
E a c h tender
must be for an even multiple of $1,000, and the price offered
must be e x p r e s s e d on the basis of 100, w i t h not more than three
decimals, e. g . , 99.925,
Fractions m ay not be used.
It is
urged that tenders be made on the p r i n t e d forms and f o r w a r d e d
in°the special envelopes w h i c h will be supplied by Federal
Reserve Banks or Branches on a p p l i c a t i o n therefor.
Ten ders will be rec e i v e d w i thout deposit f rom i n c o r p o r a t e d
banks and trust companies and from resp o n s i b l e and r e c o g n i z e d
dealers in investment securities.
T e n ders from others must be
accompanied b y p a y ment of 10 percent of t3p.e face amount of
Treasury bills a p p l i e d for, unless the tenders are a c c o m p a n i e d
by an express g u a r a n t y of payment by an incor p o r a t e d b a n k or
trust company.
I m m e d i a t e l y after the closing hour, t enders^will be opened
at the Federal R e s e r v e Banks and Branches, following w h i c h
public a n n o u ncement will be made b y the Secretary of the T r e a s u r y
of the amount and price range of a c c e p t e d bids.
Those s u b
mitting tenders will be a d v ised of the acceptance or r e j e c t i o n
thereof.
The Secretary of the T r e a s u r y expressly reserves the
right to accept or reject any or all tenders, in wnole or in
part, and his action in any such respect shall be final.
Pay
ment of a c c e p t e d tenders at the prices offered must, be made or
completed at the Federal R e s e r v e B a n k in cash or other immediately
available funds on December 3> 1941, provided, however, any
qualified d e p o s i t a r y will be p e r m i t t e d to make payment Dy credit
for Tre a s u r y b i lls a l l o t t e d to it for itself, and its customers
u p to any amount for w h i c h it shall be qualified in excess o*
existing deposits w h e n so n o t i f i e d b y the Federal R e s erve B a n k
of its district.
The income d e r i v e d from T r e a s u r y bills, w h e ther interest
or gain from the sale or other d i s p o s i t i o n of the D i l l s , shall
not have any exemption, as such, and loss from the sale or other
disposition of T r e a s u r y bills shall not hav e any special t r e a t -
2g -62
TREASURY D E P A R T M E N T
Washington
F OR RELEASE, M O R N I N G NEWSPAPERS,
Friday, November PS, 19^1._______
The S e c r e t a r y of the Treasury, b y this public notice,
invites tenders f o r .§200, 000, 000, or thereabouts, of 9 1 -day
Treasury bills, to be issue d on a discount basis under c o m p e
titive bidding.
The b i lls of this series will be d a t e d
December 3, 19*4-1, and will mature M a r c h k , 19*1-2, w h e n the face
amount will be p a y able w i t hout interest.
T hey will be i s s u e d
in bearer f o r m only, and in d e n o m i n a t i o n s of $ 1 ,000, $ 5 , 000,
$10 ,000, $ 100 , 000, $ 500 , 000, a nd $ 1 , 000,000 (maturity value).
Tenders w ill be r e c e i v e d at Federal R e s erve Banks and
Branches up to the closing hour, two o ’clock p. m., Ea s t e r n
Standard time, Monday, December 1, 19*41.
Tenders w i l l not be
received at the T r e a s u r y Department, Washington.
E a c h tender
must be for an even m u l tiple of $1,000, and the price offered
must be e x p r e s s e d on the basis of 100,, w i t h not more t han^three
decimals, e, g., 99.925.
Fractions ma y not be used.
It is
urged that tenders be made on the p r i n t e d forms and f o r w a r d e d
in°the special envelopes w h i c h will be supplied by Federal
Reserve Banks or B r a nches on a p p l i c a t i o n therefor.
Te n d e r s will be r e c e i v e d wi t h o u t deposit from i n c o r p o r a t e d
banks and trust comoanies and fro m r e s p o n s i b l e and r e c o g n i z e d
dealers in investment securities.
T e n ders from others must be
accompanied b y pa y m e n t of 10 percent of the face amount of
Treasury bills a p p l i e d for, unless the tenders are a c c o m p a n i e d
by an express g u a r a n t y of payment by an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y after the cl o s i n g hour, t e n d e rs^will be o p ened
at the Federal R e s e r v e Banks and Branches, following w h i c h
public annou n c e m e n t will be made b y the Secretary of the T r e a s u r y
of the amount and price range of a c c e p t e d bids.
Those s u b
mitting tenders will be ad v i s e d of the a c c e ptance or r e j e c t i o n
thereof.
The S e c r etary of the T r e a s u r y expressly reserves the
right to accept or reject any or all tenders, in whole or in
part
and his acti o n in any sucn respect shall be final*
ay
m e n t ^ f a c c e p t e d tenders at the prices offered must be made or
completed at the Federal R e s e r v e B a n k in cash or other i m m e diately
available funds on Dec e m b e r 3> I 9 ^ > provided, however, any
qualified d e p o s i t a r y will be p e r m i t t e d to make payment Dy credit
for T r e a s u r y b i lls a l l o t t e d to it for itself and its customers
uo to any amount for w h i c h it shall b e qualified in excess o
existing" d e p osits w h e n so n o t i f i e d b y the Federal Re s e r v e B a n k
of its district.
income
d
e r i. v» e d from T
r e-----------------a s u r y bills,/ wh e t .h e r _ interest
x’
l i e
1 U U U U I&
u -u j.
—
-,
-1-1
he
or gain fro m the sale or other d i s p o s i t i o n of the b i l l s , sha^l
not^have any exemption, as such, and loss from the Bale or o ner
disoosition of T r e a s u r y bills shall not hav e any special treau
j
22>-62
k!
-At
-
2-
ment, as s u c h , unde r F e d e r a l t a x A c t s now o r h e r e a f t e r e n a c t e d .
The b i l l s s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t , o r
o t h e r e x c i s e t a x e s , wh eth er F e d e r a l o r S t a t e , but s h a l l be
exempt from a l l t a x a t i o n now o r h e r e a f t e r imposed on t h e p r i n
c i p a l o r i n t e r e s t t h e r e o f by any S t a t e , o r any o f t h e p o s s e s s i o n s
of t h e U n i t e d S t a t e s , o r by any l o c a l t a x i n g a u t h o r i t y .
For
pu rp os es of t a x a t i o n t h e amount o f d i s c o u n t a t which T r e a s u r y
b i l l s a r e o r i g i n a l l y s o l d by t h e U n i t e d S t a t e s s h a l l be c o n s i
d e r e d t o be i n t e r e s t .
Under S e c t i o n s 42 and 117 ( a ) p i of>
I n t e r n a l Revenue Code, a s amended by S e c t i o n 1 1 5 o f t h e Revenue
Act o f 194-1. t h e amount o f d i s c o u n t a t which b i l l s i s s u e d h e r e
under a r e s o l d s h a l l n o t be c o n s i d e r e d t o a c c r u e u n t i l s u c h b i l l s
and s u c h b i l l s
i P,
s h a l l be s o l d , redeemed o r o t h e r w i s e d i s p o s e d Un a r e e x c l u d e d from c o n s i d e r a t i o n a s c a p i t a l a s s eItHs .
A ccordingly,
th e owner o f T r e a s u r y b i l l s ( o t h e r t h a n l i f e i n s u r a n c e c o m p a n i e s )
i s s u e d h e r e u n d e r need i n c l u d e i n h i s income t a x r e t u r n o n l y t h e
d i f f e r e n c e between t h e p r i c e p a i d f o r such b i l l s , w h e th e r on
o r i g i n a l i s s u e o r on s ub s eq u ent p u r c h a s e , and t h e amount a c t u a l l y
r e c e i v e d e i t h e r upon s a l e o r r e d e m p t i o n a t m a t u r i t y d u r i n g t h e
t a x a b l e y e a r f o r which t h e r e t u r n i s made, as o r d i n a r y g a i n o r
lo ss.
T r e a s u r y Department C i r c u l a r No. 4 l g , as amended, and t h i s
n o t i c e , p r e s c r i b e t h e t e r m s o f t h e T r e a s u r y b i l l s and g o v e r n
t h e c o n d i t i o n of t h e i r i s s u e .
C op ie s o f t h e c i r c u l a r may be
o b t a i n e d from any F e d e r a l R e s e r v e Bank o r B r a n c h ,
-oOo-
PRESS HSLEA.SE
h —
( VIS art of .its pfqgram to assist ban£brs and other \
interns
persons in' the adminisWatioh of the freezing
order ,\ jfch Treasury Department will sahd representative
to cer
^e^ cit$is to dHcuss freezing/problems.
/
The American Bankers Association is working closely
with the Treasury in its efforts to clarify the freezing
control for bankers and ensure its proper administration.
A.B.A. representatives will accompany the Treasury men on
the trip.
In the cities which this group visits, conferences— * » ^
will be held with Federal Reserve Bank officjer^,-'secre>
taries of state bankersf associations ,yTand~bankers designated
by the A.B.A. Plans will be made fo#'those in attendance
to assist in explaining the freezing control to hundreds
of bankers* meetings throughout the country.
In addition to the conferences of these groups, larger
meetings are being arranged in tte various cities at which
bankers and representatives of other interested groups,
such as brokers, importers and exporters, can hear an ex
planation of the freezing control by t&e Treasury
Meetings will be held in Cleveland, December 1; Chicago,
December 2; Denver, December U; San Francisco, December 8;
Dallas, December 11; New Orleans, December 12 and 1 3 ; and
Atlanta, December 15.
f * ) .
2 S - L 3
As part of its program to assist bankers and others
interested in the administration of the ’’freezing’* order, the Treasury announced
today it is sending representatives to certain key cities to discuss Foreign
Funds Control problems .
Control of foreign-owned property was vested in the
Treasury by an Executive Order which “froze” the assets of continental Europe,
Japan and China in the United States.
T R E A S U R Y DEPA R T M E N T
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Sunday, N o v e m b e r "50, 19^1.
ii/ 27/fa
As part
Press Service
No, 28-63
of its p r o gram to assist bankers and others
interested in the a d m i n i s t r a t i o n of the
" f r e e z i n g ” order,
the
Treasury a n n o u n c e d today it is sending r e p r e s e n t a t i v e s to c e r
tain key cities to discuss
Foreign Funds Control problems.
Control of f o r e i g n - o w n e d p r o p e r t y was v e sted in the
Treasury by an E x e c u t i v e Order w h i c h "froze" the assets of c o n
tinental Europe, J a pan and C h ina in the U n i t e d States,
The A m e r i c a n B a n kers A s s o c i a t i o n is w o r k i n g in close c o
operation w i t h the T r e a s u r y in its efforts to clarify the
freezing control for b a n kers and ensure its proper administration.
A. B. A. r e p r e s e n t a t i v e s will a c c o m p a n y the T r e a s u r y men on the
trip.
In the cities w h i c h this group visits, conferences w ill
be h e l d w i t h Federal Re s e r v e B a n k officers, secretaries of
state b a n k e r s ’ associations, national b a n k examiners and b a n k e r s
designated by the A. B. A,
Plans will be made for those in
attendance to assist in e x p l aining the f r e ezing control to
hundreds of bankers* me e t i n g s t h r o ughout the country.
In a d d i t i o n to the conferences of these groups, larger
meetings are b e i n g a r r a n g e d in the v a r ious cities at w h i c h
bankers and r e p r e s e n t a t i v e s of other i n t e r e s t e d groups, such
as brokers, importers and exporters, can hear an e x p l anation
of the f r e e z i n g control by the T r e a s u r y representatives.
M e e t i n g s w i l l be h e l d in Cleveland, December 1; Chicago,
December 2; Denver, December *+; San Francisco, Decem b e r 8;
Dallas, D e c e m b e r 11; N e w Orleans, De c e m b e r 12 and 13; and
Atlanta, D e c e m b e r lp.
-0O0-
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE
November 27, 1941
Press Service
No. 28-64
The Treasury Department today issued a general license liberalizing
the freezing control restrictions with respect to certain classes of
refugees who have been residing within the United States since June 17, 1940,
General License No. 42, issued on June 14, 1941 freed the accounts of
bona-fide refugees who had been both domiciled and resident in the United
States since specified dates in 1940.
The new General License No. 42A
conferred similar privileges on those refugees who could comply with the
residence and other requirements of General License No. 42 but could not
meet the domicile requirement.
The Treasury*s decision to make this liberalization was prompted by
a special study of the census reports which have been filed on Porm TPR-300.
It was explained that because of the difficulties connected with obtaining
immigration visas many refugees had been barred from the privileges of
General License No. 42.
It was also pointed out that in many other cases
there was doubt as to whether the refugee could satisfy the domicile
requirements of General License No. 42.
It now will be unnecessary to
resolve that point because such persons may take advantage of the new
General License No. 42A.
Attention was called to the fact that while the property of persons
licensed under General License No. 42 need not have been reported on census
report Porm TFR-300 no such exemption was made under the new General License
No. 42A.
The new general license expressly states that such reports are
required to have been filed.
TREASURY DEPARTMENT
Washington
FOR IlRiEDIATE RELEASE
November 27, 1941
Press Service
No. 28-64
The Treasury. Department today issued a general license liberalx,hng the freezing control restrictions with respect to ce:
classes of reiugees xrho have been residing; urithin the United States
since June 17,
General License ho 42, issued on June 14, 1941 freed the ac'f*r
who had been both domiciled and resident
'counts of bona fide reiugees
'he new General
in the United States si tee ¡necified dates in 1940
refugees who
simi ar privil.ege; on tho
License No. 42A conferr
al
.nd other requirements
re
could comply with the residence and
ol
License No. 42 but could not meet the domicile requirement.
The Treasury’s decision to make this liberalization r/as prompted
by a special study of the census reports which have been filed on
Form TFR-300, It was explained that because of the difficulties con
v refugees had been barred
nected with obtaining immigration visas
from the privileges of General License No 42 • It was also pointed
out that in many other ca es there was doubt as to whether the
refuge jould ■atisf the domicile requirements of General' License
No, 42. It now wrill be unnecessary to resolve that point because
such persons may take advantage of the new General License No 42j
Attention was called to the fact that while the property of per
sons licensed under General License No, 42 need not have been re
ported an census report Form TFR-300 no such exemption was made under
the new General License No. 42A. The new general license expressly
states that such reports are required to have been filed.
A
Là*
TBEASUBY DEPARTMENT
Washington
Press Service
No. 2S-65
(The following address "by Norman E. Towson, Assistant
Director of Foreign Funds Control, United States Treasury,
before the New Jersey Bankers Association at Princton, New
Jersey, is scheduled for 11;00 a.m., Eastern Standard Time,
Friday, November 28, 19^1, and is for release upon delivery
at that time.)
The Foreign Funds Control program was initiated in April, 191^0 » ^7
freezing the assets in this country of Norway and Denmark when, without
previous warning, Germany invaded these two neutral countries. During the
succeeding year and a half the Control has been successively extended and
the Foreign Funds Control program now affects the dollar assets and other
property of 32 countries and their territories and dependencies — assets
estimated to have a value of more than seven billion dollars. No person
who is a national of any country of continental Europe, of China or Japan,
or of any of the colonies or possessions of these countries can make use of
funds or property in the United States unless the relative transactions
have been licensed by the Treasury Department; nor can anyone in the United
States, whether citizen or alien, transact business with continental Europe,
China or Japan, or any of the colonies or possessions of these countries,
or with persons in Latin America listed on ”The Proclaimed List of Certain
Blocked Nationals” unless such transactions are authorized by Treasury
license. The freezing order is thus not only an effective measure for pro
tecting the assets within the United States of persons residing in the
invaded countries, but it is also an effective measure for regulating trade
and other business transactions between the United States and a suostantial
portion of the world. It is also a formidable weapon for protecting our
selves against the techniques of economic warfare which others may strive
to use against us.
During the course of the IS months that the Foreign Funds Control
program has been in effect, the policies and direction of control have been
modified in accordance with the course of world events. When the first
freezing order was issued shortly after the German occupation of Norway and
Denmark, the primary objective of its administration was that of protection,
The residents of these two occupied countries were not in a position to
resist Nazi demands that they order their dollar and other foreign exchange
assets transferred to German agents, institutions, or sympathizers. There
was hence a presumption that many requests for the use of Danish and
Norwegian dollar funds would be made under duress. Substantially thesame
situation prevailed in Holland, Belgium, France, and the other countries
which were occupied by Axis forces during the summer and autumn of 19 0»
the funds of which were promptly frozen at the time such occupation became
effective. The existence of the Foreign Funds Control administration
enabled the Treasury Department to pass upon each transaction relating to
the assets of persons within the occupied countries and to prevent the
execution of transactions of an objectionable character,
-
2
-
In addition to protecting property in this country "belonging to the
invaded countries and their nationals, it was necessary to prevent the
Axis powers from realizing upon large amounts of securities and other assets
looted in the invaded countries. With this end in mind controls were
established, designed to prevent the importation into the United States of
securities, diamonds, paintings, and other assets which' had fallen into
Axis hands.
It may be well to point out that the existence of the Foreign Funds
Control protected American persons and institutions as well as the property
of persons resident within occupied territory. American business concerns
and banks were protected to a large degree from suits and losses which
might otherwise have arisen from conflicting claims to property being held
for persons resident in occupied territories.
Axis agents and sympathizers within the United States were not able
to use the enormous assets which might otherwise have been available to
them had it not been for the freezing control. In short, while the United
States could not prevent the looting of assets in the invaded countries by
the Nazis, it did prevent persons in the United States from becoming un
willing or unknowing accomplices in the disposal of the loot.
I should also like to call attention to the fact that the existence
of the Foreign Funds Control, in addition to preventing the Nazis from
gaining control of the assets in this country through coercion or duress,
served notice that the use of coercion or duress in an effort to obtain
such property would be fruitless. For example, the German authorities
would have little to gain by extorting a payment order from a person in
Belgium with respect to assets held in the United States knowing, as the
authorities did, that the execution of such an order required a Treasury
license which would not be granted. While the effectiveness of the control
in this latter respect cannot easily be determined at this distance, the
evidence tends to indicate that the contribution of the freezing control
in this latter respect was significant.
With the extension of the Foreign Funds Control in June, 19^1» to the
assets of Germany, Italy, and the remaining European countries, its emphasis
was substantially changed. In addition to being a defensive weapon intend
ed to protect the property of invaded countries and their nationals, the
Control program developed into a modern weapon of great force useful both
for the assistance of our friends and as an aggressive weapon against the
Axis,
Were it not for the freezing order, the dollar assets of.the Axis
powers could be used to finance their activities. Dollars could be used
in the United States and abroad to purchase goods which the Axis would try
to run through the British blockade or place in storage in order to prevent
such goods from being used against them. Dollars could be used to finance
fifth columnists in all the American Republics. As the one currency which
- •3 ~
was generally acceptable throughout the Western Hemisphere, the dollar was
highly prized by the Axis. We could not tolerate the use of our^monetary
and banking systems by nations intent on destroying the institutions of
democracy.
The Foreign Funds Control safeguards the interest of American cred
itors of blocked countries by preventing preferential payment to some cred
itors which would result in loss to others. For this reason, applications
to pay German funds to certain creditors selected by Germany are being
denied. The Nazi Government has always discriminated among its creditors.
Because this Government desires to protect the legitimate claims of all
Americans, the Treasury does not allow the depletion of limited assets for
the sake of a few favored claimants at the expense of all others.
Formerly it was a common German practice to force down the value of
American-owned property by default and then to buy up such property at
bargain prices. This was done by Germany with respect to its bond_issues.
Now the Nazi Government is attempting to secure a monopoly of the industries
in Europe by forcing out and buying up American enterprises in the occupied
countries* The freezing control will not cooperate in any such program
designed to insure the Nazi economic monopoly in Europe,
The freezing order was extended to the four European neutrals, as
well as to Germany and Italy and the invaded countries, because it was feared
that these neutrals could be used as cloaks for transactions carried out for
the benefit of the Axis. However, as the United States did not wish to pro
hibit bona fide transactions with these neutrals, the Treasury extended
general licenses for such purposes to Spain, Sweden, Switzerland, and
Portugal. That is to say, on the assurance by those countries that no other
blocked countries will have an interest in transactions conducted under the
general licenses, specific licenses are not required,
When Russia entered the war against the Axis, a general license was
issued to the Soviet Union, vfliich in effect lifted the Control with respect
to that country.
An important extension of the freezing control was that of «July 26,
19Ul, affecting Japan and China, Japan’s dollar assets^were frozen when
its move into Indochina made it clear that it was planning further aggres
sive action vitally affecting the interests of the United States. An
important effect of freezing was the prompt stoppage of trade between the
United States and Japan.
At the same time, the assets of China were frozen at the specific
request of Generalissimo Chiang Kai-Shek, it being realized that American
freezing would give the Chinese Government greater access to dollar resources
needed to resist Japanese aggression, as well as assist China in controlling
her own economy. Continuing this policy of cooperation with the Cnmese
Government, the Treasury has recently issued several new genera* license
- % »
which have the effect of further strengthening the foreign exchange position
of China and of enabling that great nation to exercise a more extensive
control over her imports and exports.
The fact that Foreign Funds Control can be used simultaneously as a
friendly measure toward one country and as a strong and effective sanction
against another evidences the extreme flexibility of this modern weapon.
There was also issued in July, 19^1, by authority of Presidential
Proclamation ’’The Proclaimed List of Certain Blocked Nationals." The imple
mentation of the policy which was established by the issuance of this socalled "black list" has become an important function of Foreign Funds Control.
The "Proclaimed List" singles out certain persons in the other American
Republics whose activities have been found to be inimical to the United
States and hemisphere defense. Through the "Proclaimed List" program the
assets of such individuals and firms have been blocked, and they can no longer
use their dollar resources or continue their business connections with United
States concerns.
We have recently undertaken a comprehensive census of foreign-owned
property subject to the jurisdiction of the United States. This census
will contribute greatly to our knowledge of present and future problems.
Furthermore, we are hopeful that a study of the census reports will make
possible modifications in procedure that will simplify Foreign Funds Control.
We are aware of the importance of avoiding onerous report requirements, and
it is our desire to request reports from bankers and from blocked nationals
only where such reports are directly essential to the effectiveness of
Foreign Funds Control.
As you may know, Foreign Funds Control has been responsible for the
discovery of large quantities of defense materials and equipment held by
various blocked nationals. Information with respect to the location of such
materials was obtained from applications to dispose of such property and
from reports which banks were requested to file. Among the defense goods
thus discovered have been large quantities of copper, aluminum, steel, ship
building materials, zinc, airplane, spruce, machine tools, and other strategic
materials. Detailed information with respect to these materials has been,
promptly reported to appropriate defense agencies in order that they might
be made available for defense uses.
As can be seen, Foreign Fuads Control is a flexible and dynamic instru
ment in our present program of national defense. In modern economic society,
the control of financial transactions gives the controller far-reaching
powers. The Treasury Department, through the Foreign Funds Control, ensures
that these powers shall be used in the national interest.
In no small measure has the efficacy of the Control been due to the
cooperation of other G-overnment departments and of the Federal Reserve Banks,
as well as to the wholehearted support of the banking and business community.
We know that much remains to be done, and we are confident that with your aid
we shall succeed in coping with the many problems of the future.
-0O0-
being distributed by the Treasury, shows at a
glance what you will have to pay in the coming
year and how much of your monthly income you
should set aside regularly for tax payments.
A
fhe purchase of Tax Savings Notes, now on
sale by the Treasury, is one way to save system
atically and conveniently for this purpose— but
the important thing is to save.
j'
I suggest you consult your local bank,
savings and loan association, or employer. They
will, I am sure, assist you in arranging now a
savings plan to provide the money for income tax
payments next year.
^Financial institutions are now making, and
I know will continue to make, a real contribution
to the defense program by educating the public to
save. By saving and thrift we can combat the
threat of inflation which endangers us all. <'
J . Ï -
b b
For Tuesday a m Ts
v
Copies of a message to taxpayers from the
Secretary of the Treasury, urging saving
now for
income tax payments next year, were sent today to 20,000
banks and savings and loan associations.
It was suggested
to the banking institutions that they may wish to use, the
#
message in their advertising copy.
National banks were addressed by
Comptroller of the Currency Preston Delano and other banks
ffil J U
and the savings and loan associations Areceive^ the message
as an enclosure in a communication from Chairman Leo T.
Crowley of the Federal Deposit Insurance Corporation.
The text of the message from Secretary
Morgenthau is as follows:
T R E A S U R Y DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, De c e m b e r 2, 19^-1,
12/lAl
Press Service
No. 2S-66
Copies of a message to taxpayers
Treasury,
from the Secretary of the
u r g i n g saving n o w for income t a x payments next year,
were sent today to 20,000 banks and savings and loan a s s o c i a t i o n s .
It was sug g e s t e d to the b a n k i n g i n s t i tutions that they may w i s h
to use the m e s s a g e
in their a d v e r t i s i n g copy.
National b a nks were a d d r e s s e d by Comp t r o l l e r of the C u r
rency Preston Delano and other b a nks
and the savings and loan
associations will receive the m e s s a g e as an enclosure
munication from Chairman Leo T.
in a c om
Crowley of the Federal Deposit
Insurance Corporation.
The text
of the m e ssage
from S e c r etary M o r g e n t h a u is as
follows:
"The folder,
by the Treasury,
'Know Your Taxes',
w h i c h is b e i n g d i s t r i b u t e d
shows at a glance what you will have to pay
in
the coming year and h o w m u c h of your m o n t h l y income you should
set aside r e g u l a r l y for t ax payments.
"The pu r c h a s e
Treasury,
of Ta x Savings Notes,
now on sale by the
is one wa y to save s y s t e m a t i c a l l y and c o n v e n i e n t l y for
this purpose~-but
"I suggest
association,
the important
t h ing is to save.
you consult your local bank,
or employer.
The y will,
savings
I am sure,
and loan
assist you in
arranging n ow a savings plan to provide the m o ney for income t a x
payments next
year.
— 2—
"Financial
continue to make,
institutions
a real
and I k n o w will
c o n t r i b u t i o n to the defense p r o g r a m by
educating the public to save.
bat the threat
are n o w making,
B y saving' and thrift we can c o m
of i n f lation w h i c h endangers us all."
~o0o-
i
y
F o r im me di ate r e l e a s e
S e c r e t a r y Morgenthau t o d a y announced
t h e a p p o i n t m e n t o f George B u f f i n g t o n o f C h i ca g o as
an A s s i s t a n t
to the S e c r e t a r y to a i d in the
T r e a s u r y ' s program t o e n c o u r a g e
saving f o r t a x e s .
Mr. B u f f i n g t o n was a C h i ca g o r e s i d e n t
p a r t n e r o f t h e New Yor k S t o c k E xc ha n ge f i r m of
W in th r o p ,
M i t c h e l l and Company from 1 9 5 3 t o 1 9 3 8 .
F o r t h e p a s t t h r e e y e a r s he ha s m a i n t a i n e d h i s own
office
in the C o n t i n e n t a l I l l i n o i s
Building.
He ha s t e n d e r e d h i s
N a t i o n a l Bank
resignation th is
week as a v i c e - p r e s i d e n t and d i r e c t o r o f t h e
Ca mpbell,
Wyant and Cannon Foundry Company o f
Muskegon, M i c h i g a n ,
and a s a d i r e c t o r o f th e
S u l l i v a n M ac h in ery Company o f M ic h i g a n C i t y ,
Indiana.
00000000
■iSt-isa.
T R E A S U R Y DEPARTMENT
Washington
Press Service
No. 23-67
FOR I M M E DIATE RELEASE,
Monday, - Decem b e r 1, 19^1«
S e c r e t a r y M o r g e n t h a u today a n n o u n c e d the appointment
George E u f f i n g t o n of Chicago as an Assistant
to aid in the T r e a s u r y ' s p r o g r a m to
encourage
of
to the Secretary
saving for taxes,.
Mr. B u f f i n g t o n was a Chicago resident p a r tner of the
New Y o r k S t o c k Ex c h a n g e firm of Winthrop,
from 1933 to 3-93$*
his own office
Mi t c h e l l and C o m p a n y
For “the P ast; “three years he has m a i n t a i n e d
in the C o n t inental Illin o i s National B a n k Building,
He has t e n d e r e d his r e s i g n a t i o n this w e e k as a vi c e - p r e s i d e n t
director of the Campbell,
Muskegon,
Michigan,
Wyant
and
and Cannon Foundry Company of
and as a d i r e c t o r of the Sullivan M a c h i n e r y
Company of M i c h i g a n City,
Indiana.
-oOo-
"So long as the taxation of business transactions
is
nondiscriminatory ,
it
can neither prevent nor impede^
either the national or state governments in carrying on their operations
(
l
nor
re s tric t their choice
of the means by which they might
seek to discharge their functions^
" On the other hand i f Congress were to exempt
contij^tors , for example ,
from nondiscriminatory jrtate sales
tUBBF or use taxes , i t could seriously interfere
revenue-raising
ab ility of taxing authorities
revenues
IniîlTftiMiiii'iiiFTrwnr substantial
supplies will
be
with the
which depend for
on this form of taxation
Por, as our national economy becomes converted
to a war economy ,
irom a peace-time
an ever-increasing proportion of goods
sold for the ultimate
government, and thereby
to be tapped by jstate
the amount
and
use of the national
of business activ ity
transaction taxes
Mr^Kades pointed out that
government resulting
defense
intended
will be reduced. "
any cost to the national
from state taxation of
would be counterbalanced by an equivalent
defense purchases
gain
to state and local
governments |
"The national government , however » has
fiscal powers
than state or local governments " he continued.
"And for i t to pay nondiscriminatory
with private
more effective
taxes
on its transactions
business firms would help finance local
complicated formula for
M
r* Kades^ address
Mr.
public
federal aid."
was the fir s t
sTnce jjfr* recent Supreme Court decisions
declaration
which ^
A
attorneys
immunity .
say will have
far-reachin g
A
\
7 ,^ - lo X
fel-fcCf,
H S-8 6
m
/
'
A suggestion that
the federal (^vernment
taxation by th eS tates
individuals a n d j i a ^ s
business
between individuals
he made subject to nondiscriminatory
and th a t,likewise / business
be
between
subjected to ^ d ^ a l taxation
.
.L. Kades , MMWmia'j <......... ■ v
.
made today by Charles
General C o u n sel^ the
Mr. Kades
Institute
spoke
this morning
"State Taxation of Defense A ctivities.^"
f* ?The question is one of
However, I might venture to suggest
government ,
before the
taxation
|Arff/-frfe'fii'^i'ho - f-M—
Tax
in Philadelphia
on
He said
great d ifficulty and delicacy.
that serious consideration
a ll business transactions
national or state,
nondiscriminatory
was
Department .
T r e a s u r y
of the University of Pennsylvania
be given to making
and
between either
and a private person ,
by the other government .
subject to
K
this
policy is to be reciprocal , i t involves not only subjecting defense
a ctiv ities
to state
taxation but also
eliminating
the
and virtually uniform exemption from federal excise taxes
extensive
now
"3^
granted to private persons
who manufacture
or sell commodities
to states and municipalities.
«After a ll , federal and state
tax laws «ught
• g ...
to apply
advantage
to a ll citizens
equally. Existing exemptions
to those who desfe with government
deal^ with private enterpriser
give
greater
than to those w_ho
TREASURY DEPARTMENT
Washington
FOR RELEASE, A F T E R N O O N NEWSPAPERS,
T u e s d a y, De c e m b e r 2, 19^1._________
12/lA'l
Press Service
No. 25-6$
A s u g g e s t i o n that bu s i n e s s b e t w e e n individuals and the
Federal Government be mad e
subject
by the States
and that,
and States be
s u b j e c t e d to Federal
Charles L. Kades,
likewise,
Assistant
to n o n d i s c r i m i n a t o r y t a x a t i o n
business between
individuals
t a x ation was made today by
General Counsel
for the T r e a s u r y
Department.
Mr. Kades spoke this m o r n i n g befo r e the T ax Institute of
the U n i v e r s i t y of P e n n s y l v a n i a in P h i l a d e l p h i a on "State T a x a t i o n
of Defense A c t i v i t i e s . "
He said:
"The q u e s t i o n is one of great d i f f i c u l t y and delicacy.
However, I might v e n ture to suggest that serious c o n s i d e r a t i o n
be given to m a k i n g all b u s iness trans a c t i o n s be t w e e n either
government, n a t ional or state, and a p r i vate person, subject to
n o n d i s c r i m i n a t o r y t a x a t i o n by the other government.
If this
policy is to be reciprocal, it involves not only s u b j e c t i n g defens»
activities to state ta x a t i o n but also eliminating tfie extensive
and v i r t u a l l y u n i f o r m exemption from Federal excise taxes now
granted to p r i v a t e persons who m a n u f a c t u r e or sell commodities
to States an d m u nicipalities.
"After all, Federal and State t a x laws ought to apply to
all citizens equally.
E x i s t i n g exemptions give a greater a d v a n
tage to those who deal w i t h government than to those who deal
with p r i vate enterprise.
"So long as the ta x a t i o n of b u s i n e s s transactions Is n o n
discriminatory, it can neither p r e vent nor impede either the
national or state g overnments in c a r r y i n g on their operations,
nor restrict their choice of the means by w h i c h they might seek
to discharge their functions,
"On the other hand, if Congress were to exempt defense
contractors, for example, fro m n o n d i s c r i m i n a t o r y State sales
or use taxes, it could seriously interfere w i t h the r e v enueraising a b i lity of t a x i n g a uthorities w h i c h depend for s u b s t a n
tial revenues on this form of t a x a t i o n r For as our national
economy b e c o m e s c o n v e r t e d from a p e a c e - t i m e to a war economy,
2an e v e r - i n c r e a s i n g p r o p o r t i o n of goods a nd supplies will be
sold for the u l t i m a t e use of the n a t ional Government, and t h e r e
by the amount of bu s i n e s s activity intended to be t a p p e d by
State t r a n s a c t i o n taxes will be r e d u c e d . 11
Mr. Kades p o i n t e d out that any cost to the national G o v e r n
ment r e s u l t i n g from State ta x a t i o n of defense purchases w o u l d
be c o u n t e r b a l a n c e d by an equivalent gain to State and local
governments,
"The na t i o n a l Government, however, has more effective
fiscal powers than State or local g o v e r n m e n t s , " he continued.
"And for it to p ay n o n d i s c r i m i n a t o r y taxes on its t r ansactions
with private bus i n e s s firms w o u l d hel p finance local public
undertakings on an automatic and an impartial basis, without
establishing any c o m p l i c a t e d f o r m u l a for federal aid."
Mr. K a d e s 1 address was the first d e c l a r a t i o n on the subject
by a T r e a s u r y official since three recent Supreme Court d e c isions
w h i c h attorneys say will have f a r - r e a c h i n g influence on the
principle of inte r g o v e r n m e n t a l immunity.
The three cases, in each of w h i c h the decision was unanimous,
were A l a b a m a vs. K i n g and Boozer, in w h i c h the court u p h e l d the
cons t i t u t i o n a l i t y of State sales t a x a t i o n of contractors who
purchase goods for use of the U n i t e d States; Curry vs. U n i t e d
States, in w h i c h the Court h e l d that defense contractors were
not immune f r o m the A l a b a m a use tax, and Federal L a n d B a n k vs.
B i s m a r k L u m b e r Company, in w h i c h the Court h e l d that Congress
has the p o wer to exempt from State t a x ation any government a g e n c y
and that a g e n eral exemption from State, municipal and local
taxation includes w i t h i n its b a n a State sales tax w h i c h makes
the purchaser liable for the tax.
- 0O 0-
TREASURY DEPARTMENT
feshlngton
PC» HEIMSE, MORNING NEWSPAPERS,
Tuesday, Deceder 2« 1941.
i w 41
Press Service
t,ir~ L f
Th« Secret&py of the Treasury announced last evening that the tenders for
$200,000,000, or thereabouts, of
Treasury Mils, to be dated December 3,
1941, and to nature March 4, 1942, which were offered on November 28, were
opened at the Fédéral Reserve Banks on December X*
The details of this Issue are as follows:
Total applied for - 1468,160,000
Total accepted
- 200,156,000
Range of accepted bids:
High
1»«
Average price
~ 100.
« 99.930 Equivalent rate approximately 0.277 percent
- 99.939
«
»
«
0.242
*
t(P™
(79 percent of the amount bid for at the low price sac accepted)
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, De c e m b e r 2, 19^-1*_______
12/1/4-1
"
The
S e c r e t a r y of the T r e a s u r y a n n o u n c e d last
the tenders
bills,
Press R e l ease
|HK 2S-69
for $200,000,000,
to be d a t e d D e c e m b e r 3,
or thereabouts,
1941,
which were o f f e r e d on Nov e m b e r 2S,
Reserve Banks
evening that
of 91-day T r e a s u r y
and to mature M a r c h 4,
194-2,
were opened at the Federal
on Decem b e r 1,
The details
of this
Total a p p l i e d for Total ac c e p t e d
-
issue are as follows:
$46$,l6o, 000
200,156,000
R a n g e of a c c e p t e d bids:
High
Low
Average
Price
99^930 Equivalent rate ap p r o x i m a t e l y O .277 percent
99 »939
11
H
"
0.24-2
I
(79 percent of the amount b i d for at the l ow p r ice was accepted)
~ o 0o~
DIVIDEND PAYMENTS TO CREDITORS OF INSOLVENT NATIONAL
BANKS AUTHORIZED DURING THE MONTH ENDED
___________
NOVEMBER 30, 1 9 4 1 ______________
Name and Location of Bank
Nature of
Dividend
Date
Authorized
Number and
Percentage
of Dividend
Authorized
Distribution
of Funds by
Dividend
Authorized
Total
Percentage
Authorized
Dividends
to Date
Number of
Clsrt rnants
Amount
m
sA i M . Prnvftrf
The Broad Street Nat»l Bank/ of
Red Bank, New Jersey*
‘■"’Final
11-13-41
3rd
4.3 % #
67,300
47*3 %
5,879
The First National Bank of
Seeaueus, New Jersey
11-19-41
4th
6 *46#
59,100
86 »46#
3,061
914,800
The First Nat’l Bank & (Tr.Co*. of_i
11~2:U41
Bedford, Pennsylvania
Ihterest(Partial)
Int.
2.08*
16,700
102.08*
3,197
801,200
The Lehigh Valley Nat *1/Bank of
Bethlehem, Pennsylvania
Regular
11-3^41
1st
20*
%
208,644
20#
%
1
1,043,220
The Keswick National Bank[of
Glenside, Pennsylvania
Regular
lL»22n41
1st
65.
%
724,900
65. *
5,952
1,115,300
The Point Pleasant Nat»lJ_Bank
Point Pleasant, ¥• Va#
Final
11-14~41
2nd
14.1 %
46,800
94 .1 *
1,250
332,000
Final
«
1 ,564,500
TREASURY" DEPARTMENT
Comptroller of the Currency
Washington
FOR RELEASE, MORNING NEWSPAPERS
Press Service
■3
s f 'f l
2-6' 7 0
During the month ended November 30, 194-1, authorizations
were issued to receivers for payments of dividends to the creditors
of six insolvent national banks.
Dividends so authorized will
effect total distributions of 11,123,444- to 19,340 claimants who
have proved claims aggregating $5,771,020, or an average payment
of 19*47 percent*
The minimum and maximum percentages of dividends
authorized were 2*08 percent and 65.0 percent, while the smallest
and largest payments involved in dividend authorizations during the
month were $16,700 and $724,900, respectively.
Of the six dividends
authorized three were final dividend payments, two were regular
dividend payments and one was a partial interest dividend payment.
Dividend payments so authorized during the month ended November 30,
1941, were as follows:
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
FOR RELEASE, MORNING NEWSPAPERS ,
Wednesday, December 3, 1941,
Press Service
28-70
During the month ended November 30, 1941, author
izations were issued to receivers for payments of dividends
to the creditors of six insolvent national banks.
Dividends
so authorized will effect total distributions of $1,123,444
I
to 19,340 claimants who have proved claims aggregating
$5,771,020, or an average payment of 19.47 percent.
I
The
minimum and maximum percentages of dividends authorized were
2.08 percent and 65.0 percent, while the smallest and largest
payments involved in dividend authorizations during the m o n t h
were $16,700 and $724,900, respectively.
Of the six dividends
authorized three were final dividend payments, two were regu
lar dividend payments and one was a partial interest dividend
payment.
Dividend payments so authorized during the month
ended November 30, 1941, were as follows:
DIVIDEND PAYMENTS TO CREDITORS OF INSOLVENT NATIONAL
BANKS AUTHORIZED DURING THE MONTH ENDED
_________ NOVEMBER 30, 194l__________________
Number and
Percentage
of Dividend
Authorized
Nature of
Dividend
Date
Authorized
The Broad Street Nat’1 Bank
of Red Bank, New Jersey
Final
11-13-41
3rd
4*3
The First National Bank of
Secaucus, New Jersey
Final
11-19-41
4th
The First Nat’l Bank &
Trust Company of
Bedford, Pennsylvania
Interest
(Partial)
11-21-41
Int.
The Lehigh Valley Natrl
Bank of Bethlehem,
Pennsylvania
Regular
11- 3-41
1st
The Keswick National Bank
of Glenside, Pennsylvania
Regular
11-22-41
Final
11-14-41
Name and Location of Bank
The Point Pleasant Nat’l
Bank, Point Pl-easant,
West Virginia
Distribution
of Funds by
Dividend
Authorized
Total
Percentage
Authorized
Dividends
10 Dat e
%
Number of
Claimants
Amount
Claims Proved
5»S79
$ 1,564,500
67,300
1+7 .3
6*46#
5 9 »100
86.46#
3 ,0 6 1
914,800
2.0S#
16,70 0
102*08#
3.197
801,200
20.
ft
208,644
20.
#
l
1,043*220
1st
65 .
#
724,900
65.
i
5.952
1 , 115 ,3 0 0
2nd
14.1
f
46,800
94.1 #
1,250
332,-000
- 0O 0-
%
?
- * -
The cooperation of bonking Institution«# and of the subscribing public
generally, 1« earnestly solicited «o that subscription« forwarded to th«
federal Beeerwe Baak« and th« Treasury will in «ach instance he for aaounts
not in «seo««» of th« llnltatlon ««t forth abewe*
Attention i* «dai® Inrited
to tho requirement that subscriber« agree not to ««IX or otherwise dispose
of their subscriptions, or of tho securities which nay be allotted thereon,
prior to tho closing of tho subscription books*
It Is also « a p t that banks and others refrain fron Baking any unsecured
loans» or loans collateralised in whole or In part by the securities subscribed
for, to cower the initial deposits which are required to bo paid when
subscriptions ars entered*
4
m m m t xwütfMm
Washington
fOE
im W ik ft
Pros« Service
8° * > # S a
BS&fASB,
In advance of tho cash offering of Treasury «#curiUti to ho announced
tomorrow, the treasury
srplileiy the haeis on which
subscription* will ho entertained fron the various classes of suhoorihers <Ao
vill participate in that offering,
the prlnary purpose io, to far as possible,
to meet tho legitimate Investment requirement« of the public, and to accomplish
that purpose subscriptions sill he grouped broadly into four cla*«es, as follows!
Banks and trust companies for their own account —
not to exceedpfiftlr per cent of capital and eurplus.
Mutual savings and cooperative hanks, Federal Savings
and Loan Associations, trust accounts and investment
corporations, pension funds, insurance companies, and
similar institutions and funds— not to exceed ten per cent
of total resources.
Corporations organised for profit, and dealer* and brokers
not to exceed 5® per cent of net worth»
***
Individualsws not to exceed 90 per cent of net worth or 100
per cent of cash deposited with subscription. (Hots* Ho
preferred allotment will he made on such full-paid
subscriptions.)
SotwitiMiaftiilng th* general imitation* outlined «hove, tho Federal ¡to*enrt
Banks are authorised and instructed to continue to exsmine applications^ cesh
offering* of ooeurltlos loauad hy tho Treasury, and to report to tho Seeretan
of tho
Treasury nny »hloh. In their Judgment, require special treatnent, or rtioh
appear to ho excessive fro. the otandpolnt of tho resource# or lnreetaont
practice* of tho enhoerlhoro, or for other reasons. «1th reeomsndatlon ss to
the acceptance, reduction^ or rejection of any euch application*, shlch reoosae*dations will he promptly acted upon by the Secretary.
j
T R E A S U R Y D E P A RTMENT
Washington
for
Wednesday,
Press Service
No. 23-71
,
D e c e m b e r 3, 19^1.
immediate
release
In a d v ance of the cash o f f e r i n g of Treasury
announced tomorrow,
securities to be
the Tr e a s u r y t o day a n n o u n c e d the b a sis on
which s u b s c r iptions will be e n t e r t a i n e d from the various
of subscribers w ho will p a r t i c i p a t e
purpose is,
so far as possible,
recjuir ement s of the public,
in that
to meet
offering.
classes
The primary
the l e g i timate investment
a n a to a c c o m p l i s h that purpose
scriptions wil l be g r o u p e d b r o a d l y into four classes,
sub
as follows:
B a n k s and trust companies for their own a c c o u n t —
not to exceed RO per cent of c ap it a 1 an d -sur cl us.
Mutu a l savings and. coop e r a t i v e banks, Federal Savings
and L o a n Associations, trust accounts and investment
corporations, p e n s i o n funds, insurance companies, and
similar institutions and funds —
not to exceed ten
p er cent of total resources.
C o r p o r a t i o n s o r g a n i z e d for profit, and dealers and
brokers —
not to exceed ^ 0 per cent of net worth.
Individuals —
not to e x c e e d 50 per cent of net w o r t h
or 100 per cent of cash d e p o s i t e d w i t h subscription.
(Note:
No p r e f e r r e d allotment will be m a d e on such
f u l l - p a i d s u b s c r iptions.)
-
N o t w i t h s t a n d i n g t h e general limitations o u t l i n e d above, the
Federal Re s e r v e Banks are a u t h o r i z e d and instructed to c o n tinue to
examine a p p l i c a t i o n s for cash offerings of securities i s sued b y /
the Treasury, and to report to the S e c r e t a r y of the T r e a s u r y any
which, in their judgment, re q u i r e special treatment, or w h i c h
appear to be e x c essive from the standpoint of the res o u r c e s or
investment p r a c t i c e s of the subscribers, or for other reasons, w i t h
recommendation as to the acceptance, r e d u c t i o n or r e j e c t i o n of a ny
--s u c h - a p p l i c a t i o n s , w h i c h r e c o m m e n d a t i o n s wil l be p r o m p t l y acted
upon b y the Secretary.
The c o o p e r a t i o n of b a n k i n g institutions, and. of the subscribing public generally, is e a r n e s t l y solicited so that subs-crip
^ t l o n s f o r w a r d e d to the Federal R e s e r v e Banks and the T r e a s u r y will
in each instance be for amounts not in excess of the l i m i t a t i o n
set forth above.
A t t e n t i o n is again i n v ited to the r e q u i r e m e n t
that subscribers -agree not to sell or otherwi.se d i s p o s e of their
~2~
s u b s c r i p t i o n s , or of the securities w h i c h may be allot t e d thereon,
prior to the c l o s i n g of the s u b s c r i p t i o n books.
It is also r e q u e s t e d that banks and others r e f r a i n from
making any u n s e c u r e d loans, or loans c o l l a t e r a l i z e d in w h o l e or
in part by the securities s u b s c r i b e d for, to cover the initial
deposits w h i c h are r e q u i r e d to be p a i d w h e n subscriptions are
entered.
-oOo
Hi* tinnirti ináiisaisd by tho Socrotory of %Imi treasury to ti m Foderai Sosero
of the respective districts, to
fo r
ÌM m tm
eXXotaent notices, to receive payan*
***** «Bottai, to sake doUvory of boods o d ftell-î*Jd subscrlptloiis allotted
and they
2.
«ay l s t w
latori» receipts pending delivery of the definitive bonds.
The Secretary of the Treaeary way at any ti»e, or frw» tiao to tlao,
proscribo supplemental or sasondstory relea and regulations governing the offorw
lay, which «ill bo oowomicsatod promptly to tho Foderai Socorro Bank».
m
í iflDsmmA», j e . ,
Secretory of tho Treasury.
by paywmt ®f 10 perçant of the anouBt of bond* »p p lW f«w. » * la » *
«r wMnfi «ubecriptlone «U 1 b* entertalned i* w th# varie*» elaaae* of *ubeerlbe»
are eontained I s Treaeury pre** etatenant of Beeeetoer 3 , 1941» * *®W o i
4»
attached.
a* fini
ef t e ïr»a«*iry p tw m i t e righi t© tendt t e «teestp»
U<mf In M i or in part* to « Ilo t t e
«ai ta
d o n * tiw
tek* **
to
an?
il m& t e «ao»nfc of t e l « *Pf*H«d fo r,
or *11 «iteripttes *t
te
«ai t e notion h« t e tak» in i t e o roopœts «tnOX b« fianl»
« m a t « up to t e
is rn im m $
itoterlption* for
#5#OO0 t e r « t e « i t e r t e r » «poeify t e t d«lte*y
b« « t e in t e U t o i w i b o t e 90 t e
«Hotent.
tin« «dtent notte*
«f■
t*r t e t e n » d*t« «111 b« g t e a prof*n*d
la « t e « t e ««*» « atecriber t e t e «nfcor t e © t e r «tecriptism,
t e t e n t e « t e b# « t e ai p i w l t e in t e U o n I? of thi* circuler.
Allotent
notice* « H 1 b« « t e t e pronptly npon « H â t e n t , t e t e b t e a of t e « H o t t e
i&ll b» publicly «nncwnte*
1?.
3U
vxmm
F t e t e &t p«r t e «oarte i t e r t e , if t e # I » bond« « H o t t e b r o u t e
« t e b» and« or complote m or bnfor» D o u t e r 15# I M # or on Intor «Hâtent«
t?|i|k «▼«ry m m
*tM*r» payawii 1» not «o ooqplotod, tiw paymont wtth application «p
to 10 porewst of t e m a m t of bond» «pplte for tell, opon d o t e m t i m t e » by
t e â»or«te 7 of t e îrmoury in hl« dterotiea, b» forf«ite to t e batte
State,
t e «r«*ilfte dspcwitary M l
b» poraitte to t e » patate by «redit for
bond« « H o t t e to it for itelf «ad it» cuaiaaors up t© t e «nouai for tech it
te l l bo qpallflod la «te«» of ©xUticif d«poait«, «bon «o notifte by t e F t e * !
i M n i Bank ef it» dietrlet»
f.
1.
tm m x narm sm
A* fiscal agent* ef tk* United State*, Fédéral üeeerve Bank» are authorlMÎ
and requeated te reçoive «ubscriptione, to aalce allotawnte en tiw baei* and ep te
I
*» M **
2* Th©
d©riv©d frai th© bonds «bail b« subject to ail Fsdsral taxas,
mf» 0j* % r ©aftsr iapossd*
Th© bonds sh&ll b# subJ©ot b© ©State* Inhsrltasso* glft
or other c xsiM tassa* *fc©th©r Fsdsral or State* bat ahall be «xsnpt t v m ail tas». i
no» or hexsafter isposod ©b ths principal ©r intsrsst thereof by sny 3tate* or
*ny of th# posssssions of lits United Btatea, ©r by a«y local taa&ng authority.
3 . Ths bonds ©111 bs acceptable to soeur© doposit© ©f public æneye, but
■411 not bssr the circulation px&rllsg© and idll net be sntitlad to any privilège
j^ f lr
.«« iiài «ii « m iW>~<ÉMiiÉÉW itflkSSk
OJT CCIPrOwSlCwNk
4.
Bearer bond» idtb intersst coupons attaohsd* and bonds registered as t©
principal and interest, elll b© Isseed lu dencüdfflatlons of $50» $100, $500, $1 *000, i
$5*000* $10,000 and $100*000«
Provision *111 b© «ado for the interctmng© ©f bouda
of different denoadratlon» and of ooopon and roglstored bonds* and for the imasfsr
Osf registered bonds* under n d s s sud régulations prescribed by th© 3»cr©ta*y of tht
Treasmy«
5 « Th© bonds «111 bs snbjeet to th» gonoml regulaUons of th© îreaseiy Sipartaent* no© or hereaftor pfesorlbod* gorernlag United States bonds«
m«
1«
Subscriptions « m
m
m
mm m & m m
b© receîved at th© Fédéral [¿©serve Banks and Sianohs»
and at ths Tksasoxy Departaent, Washington«
Subserlbors «est agre© net to s©ll or
otherwia© dispos© of thsir subscrlptlcsis* or of ths seosufitl©© whiefa «»y b© allottad
thereon, prier to th© doslng ©f th© suhsorlptlon books.
Banking Institutions
gensrally m y subedt subaeriptlon» for aocount of mistonsrs* bot only ths Fédéral
asserve Banks and th© Treasury Dopartaent are aoUlorlssd to act as official agenci«» i
Others than
instltiM**“
for thoir own acccrarvt.
P«»***** t» •nt*r wtaorfpUon»
Subscrlptlon* tram tanks and trust c o b psnios fer thsir o w
accolant »411 ta roeslvsd without dspoait.
dubscrlptions frota ail othars «mst ta
r o m o state»
z m a m
tmmsx
I
ca
bows
or 1951-55
fetad «ad beatine Interni from I«ee«iaber 15, 1 9 U
w
O n DMMdber 15, 1955
IffwBMMWJt ¿T TBB « 1 0 » OF THE « I B S STATES AT PAS ASD AC08EKD I S B ® S » CM AMD m i
mcmm15,1951
Interest payable 4mm 15 and Qeseaber 15
1941
Department CArealar Ko* 673
m A s m i dim m r n m ,
Û l î i « oí ti» Secretary,
Washington, D M t o r 4# 1$4L
Fiscal Servio«
Bureau of ti» Publio M it
i*.
1«
« t H H
OF BOUBB
f l» Secretary of the Treasury, pursuant to the authority of the second
Liberty Bond A ct, a« «»ended, to rito « subscriptions, a t par and accrued Autoreti,
from the people of the United State« fo r 2 percent bonds of the United States,
designated Treasury Bond# of 1 ^ 5 5 *
fho aaoieit of the offering i t $300,000,000,
or thereabout«*
ut.
1.
nmmxmm m m m
The bonde «ill bo dated Decomber 13, 19U, and m i bear interest fra»
that date at the rate of 2 percent per anna», j*yable «wdannoally o» á u m 13 and
December 15 in each year until the principal auncunt becomes payable.
They 411'
»stur« December 13, 1955» but aay be redeemed at the option of the felted States
on and after December 15, 1331, in «hole or in part, at par and accrued interest,
on aiy interest day or days, on 4 months* notice of redemption giron in math »sa
ner as tbs Secretary of the treasury shall prescribe.
In ease
of partial redssp-
tion tbs bonds to bo redeemed «111 bo determined by such method as nay be pre
scribed by tbs Secretary of the Treasury.
Fro» the date of redemption designated
in any such notice, interest en the bonde called for redemption «hall cease.
*» 4 **
«T the respective districts, to issus alletaeai notices, to receive payeest for
bonds allotted, to sake delivery of bonds on foil-paid subscriptions allotted,
and they say is«*» interim receipts pending delivery of the definitive bonds,
2,
The decretai? of the Treasury say at any time, er from U s e to ties,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, which will be coamaralcated promptly to the Federal Seserve Banks,
M M i m m m n m , j r .,
Secretary of the Treasury,
§8B contalned la Treasury presa statement of Decomber 3» 1941# *
ìU m
1»
M *
2,
fh* Secretary of thè Treasuiy re»erf«» thè righi io reject any «*b«erlp-
iion, la aiolo or in pori» io oliai lo«« thaa thè asount of baldo applied far»
«ad to ciò so ih© books as io any or all subscriptions «i any i iao without noticej
any action ho «ay take in theee: raspaci* «ball bo final*
Subscriptions for
amounts up io and ineluding $5,000 «bere ih© subscrlbers specify ihai delivery
bo oad« in registered bonds 90 day« after ih© issue date «111 bo «ivo** p r e f e m d
allotment.
In «aoh «neh caso a subacriber oay noi entor auy otbor subscription,
and payraent ansi bo «odo as previde* in Section IT of tbls circular.
AHetneat
noiices « H I bo seni oni proaptly «pon alloiment, and ih© ba«i« of thè allotment
« H I be pabliely announced.
IT.
PAIXm
X* Paynent ai par and aeerued interest fio» Octdber 20» 1941# for bonds
allotto* he reunder ansi be aedo or canpleted on or before Decomber 15» 1941# or <a
later allotaent. Za every case «bere payaent la not so eoapleted, thè paynent «iti
V
V
'
application up to 10 percent of tho amassi of bonds applied for «ball» upon declaration aade by thè Secretary of tbo Treasuiy in hls diecretion, bo forfolted to thè
United State«.
Any qualified deposltary «ili be pemitted to nake paynent by
eredii for balda alletto* to li for itself and it« customers up to any aiaount for
which ii shall be qualified in ascesa ef exieting deposita, «ben so notifled by
ibe Federai Reservs Bade of it« districi.
Accrued interest ai 2—1/2 percent trm
October 20» 1941 io Beo«»ber 15» 1941 on $1,000 face amount 1« $3. $674.
T.
1.
GSf&ftAL P80TISI0SS
A« ficcai agente of tbs United State«, Foderai Se«er*e Banks are authorised
fruì requeste* to reoeive subscription«» to »alce aHoinento «a tbo basi» and up te
thè anouxsts indicato* by tbo Secretary of ibe Treasury to thè Federai Beservs Banks
la whole or la part, at per ead accrued interest, on any interest day or
days, m 4 months * notice of redemption given in such manner as the
Secretary of the Treasury shall prescribe. In ease of partial redemption
the bonds to be redeemed will be determined by such method as may be pro»
scribed by the Secretary of the Treasury, From the date of redemption
designated in any such notice, interest on the bonds called for redemption
shall cease.
*2. The income derived from the bonds shall be subject to all Fedeiwl
taxes, now or hereafter imposed. The bonds shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but shall
be exempt from all taxation mow or horoaftor imposed on the principal or
interest thereof by any State, or any of the possessions of the United
States, or by any local taxing authority*
*3. The bepds will be acceptable to secure deposits of public moneys,
but will not beer the circulation privilege and will not be entitled to
any privilege of conversion.
"4. Bearer bends with interest coupons attached, and bends registered
as to principal and interest, will be Issued in denominations of $30, $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 transfer 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 Department, now or hereafter prescribed, governing United States
bonds.*
h i
1.
.
suBscaimoR a w k u m w m
Subscriptions will be received at the Federal Reserve Banks and Branchs«
at the Treasury Department, Washington.
Subscribers most agree not to sell or
otherwise dispose of their subscriptions, or of the securities which may be allotted
thereon, prior to the closing of the subscription books*
Banking institutions
generally may submit subscriptions for account of customers, but only the Federal
«©serve Banks and the Treasury Department are authorised to act as official agencies.
Others than banking institutions will not be permitted to enter subscriptions except
for their own account.
Subscriptions from banks and trust companies for their cun
account will be received without deposit.
Subscriptions from all others must be
accompanied by payment of 10 percent of the amount of bonds applied for.
Tbs bases
on which subscriptions mill be entertained from the various classes of subscribers
tIHITSD STATES OF AMERICA
2 - 1 / 2 pehcemt w m m r n bombs of 19 6 7 -7 2
Patvd nn^ bearing i w U itii Jtntt October 20, 1941
September 15» 1972 |
BgnggaiUTg At THE OPTIC« OF THE i l l ® STATES AT PAH AMD A C < M S D BTOHEST OH AMD APT»
SEPTEMBER 15, 196?
Interest payable March 15 and September 15
ADDITIONAL ISSUE
tisasosx DEPAancarr,
Office of the Secretary,
Washington, December 4, 1941.
19a
Department Circular Ho* 672
Flec&l Service
Bureau of the Public Debt
I.
1.
OFFERIBG OF BOMBS
The Secretary of the Treasury, pursuant to the authority of the Second
liberty Bond Act, as amended, invites eubecription», at par and accrued interest,
fro« the people of the Dnlted States for 2-1/2 percent bond* of the United State*,
designated Treasury Bonds of 1967-72.
§1,000,000,000, or thereabouts,
The amount of the public offering is
la addition to the amount offered for public sub
scription, §50,000,000, or thereabouts, of theca bond* may be allotted to Govern
ment investment accounts.
IX.
A.
DESCRIPTION OF BOMBS
The bend* now offered mill be an addition to and will form a part of th*
series of 2-l/2 percent Treasury Bonds of 1967-72 issued pursuant to Department
Circular Mo. 670, dated October 9, 19U, «ill he freely interchangeable therewith,
are identical in all respects therewith, and are described in the following quota
tion from Department Circular Mo. 670*
«1. The bond* will be dated October 20, 1941, and will bear interest
frem that date at the rate of 2-1/2 percent per annum, payable on a eemibasls on March 15 and September 15 in each year until the principal
amount becomes payable. They will mature Septeafcer 15# 1972, but mey be
redeemed at the option of the United States on and after September 15, W>($
December 15, 1941, or on later allotment, and in the case of 8-1/2 pere «sit
Treasury Bonds of 1967-72 aast Inalado accrued interest from October 80 to
December 15, 1941 (#3.8674 per #1,000 face amount}•
The texts of the official circulare follow:
\
-
8-
will mature December 15, 1955, but may be redeemed, at the option of the
United States, on and after December 15, 1951*
The bonds of both aeries will be Issued In two forms:
bearer bonds
with interest coupons attached, end bonds registered both as to principal
and interest*
Both forms will be issued In the denominations of 950, #100,
#500, $1,000, #5,000, #10,000 end #100,000.
Pursuant to the provisions of the Public Debt Act of 1941, interest
upon the bonds now offered shall not hare any exemption, as such, under
Federal Tex Acts now or hereafter enacted.
Otherwise the securities will be
accorded the same exemptions from taxation as are accorded other Issues of
Treasury bonds now outstanding.
These provisions are specifloelly eet forth
♦
in the official circulars released today.
Subscriptions will be received at the federal fieserve Banka and Branches,
and at tha Treasury Department, Washington.
Banking institutions generally may
submit subscriptions for account of customers, but only the Federel B«serve
Banks and the Treasury Department are authorized to sot ee official agencies.
Subscriptions for the bonds from banks and trust companies for their own account
will be reeelved without deposit, but subscriptions from all others must be
accompanied by payment of ID percent of the amount of bonds applied for.
The
bangs on whioh subscriptions will be entertained from the various classes of
subscribers were publicly announced yesterday end the limitations then fixed
will apply separately to subscriptions for each series of bonds.
The right« is reserved to close the books ee to any or ell subscriptions
or classes of subscriptions for bonds of either series at soy time without
notice.
The basis of allotment of subscript lone will be publicly announced,
and payment for any bonds allotted must be made or completed on or before
triasort
ßiT’ARTifSfr
Washington
FOR HILF ASF, M I H I IltSPáPiRS,
Thursday, December 4, * 1941,
ísTiTíT 11
Press
feZ
T
\%
d
n
Secretary of the Treasury Morganthaa today announced the December 18
financing, offering, through the Federal Reserve Saaks, for cash subscript ios,
|1,COO,000,COO,
o r
thereabouts, of 8-1/£ percent Treasury Bonds of 1947-72,
aad #800,000,000, or thereabouts, of 2 percent Treasury Hoads of 1951-58,
Aa
additional «mount of #50,000,000, or thereabouts, of 8-1/2 percent Treasury Bond«
of 1947-78 ®iy be «old to Government Investment Aooounte during the next »oath.
For the benefit of »all investors, preferential allotments will be given to
eaeh subscribers up to #8,000 of the bonds of either or both series, «here
delivery in registered bonds 90 days after issue date ie specified; those who
•»ter euoh a subscription for preferential allotment may not enter any other
subscription for the same issue.
The Treasury Hoads of 1947-78 now offered for cash subscription will be
sn addition to and will form e part of the series issued pursuant to Treasury
Department Circular No. 470, dated October 9, 1941.
They are identical in all
respects with such bonds, with which they will be freely interchangeable• the
bonds are dated October 80, 1941, and bear interest from that date at the rats
of 2-1/2 percent per »»urn, payable semiannually on Mbrch 15 sad September 15,
with the first coupon due March 18, 1942, for a fractional period.
The bonds
will mature September 18, 1978, but may be redeemed, at the option of the
United States, on and after September 15, 1947,
The Treasury Bonds of 1951-55, also offered for cash subscription st this
time, will be dated December 18, 1941, and will bear interest at the rata of
8 percent per annum, payable semiannually on June 15 and December 15.
The bondi
%
T R E A S U R Y D E P A RTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Thursday, D e c e m b e r *4-, 19*4-1.
12/3'A i
Press Service
No. 2 & -~ l2
Secretary of the T r e asur y M o r g e n t h a u today a n n o u n c e d the
December
Banks,
15 financing, offering, t h r o u g h the Federal Re s e r v e
for cash subscription,
$1,000,000,000,
2-1/2 percent T r e a s u r y B o n d s of
thereabouts,
of
2- 1/2 percent
For the benefit of small
investors,
allotments will be g i v e n to cash subscribers up to
$5,000 of the bonds
registered bonds
of either or b o t h series,
w h ere d e l i v e r y in
90 days after issue date is specified;
enter such a subsc r i p t i o n for p r e f e r e n t i a l
any other
of
An a d d i
1967-72 may be sold to G-overnment Investment
Accounts d u r i n g the next month.
preferential
of 1 9 5 1 — 55*
of $ 50 ,000, 000, or thereabouts,
Treasury B o nds
of
1967 - 7 2 , and $ 500,000,000, or
of 2 percent T r e a s u r y Bonds
tional amount
or thereabouts,
s u b s c r i p t i o n for the
those who
allotment may not
enter
same issue.
The T r e a s u r y Bonds of
-~ J2
o f f ered for cash s u b s c r i p
tion will be an a d d ition to and w i l l for m a part of the series
issued pursuant to Treas u r y D epartment Circular No. 670 , d a ted
October 9 , 19*4-1.
They are identical in all respects w i t h such
bonds, w i t h w h i c h they will be freely interchangeable.
The bonds
are dated O c t o b e r 20, 19*4-1, and bear interest fro m that date at
the rate of 2 - 1/2 percent per annum, p a y able s e m i a n n u a l l y on
March 15 and S e p tember 1 5 , w i t h the first c o upon due M a r c h 1 5 ,
19*4-2, for a f r a c tional period.
The bonds will mature S e p t ember
15, 1972, but may be redeemed, at the option of the U n i t e d States,
on and after Sep t e m b e r 1 5 , 19^7*
The T r e a s u r y Bonds of 1951"’55» also o f f ered for cash sub
scription at this time, will be d a t e d D e c ember 1 5 , 19*4-1, and will
bear interest at the rate of 2 percent per annum, payable sem i
annually on June 15
and December 1 5 . The b o nds will m a t u r e
December 1 5 , 1955» but m ay be redeemed, at the option of the
United States, on and after D e c e m b e r 15; 1951*
2The b o n d s of b o t h series w i l l be i s sued in two forms:
bearer bonds w i t h interest coupons attached,, and bonds r e g i s t e r e d
both as to p r i n c i p a l and interest..
B o t h forms will be i s s u e d in
the d e n o m inations of $ 50 , $ 100 ,. $ 500 , $ 1 , 000, $ 5 » 000, $ 10,000 and
$100, 000*.
Pursuant to the p r o v isions of the Public Debt Act of 19^-1,
interest u p o n the bonds n o w o f f e r e d shall not have any exemption,
as such, u n d e r Federal T a x Acts n o w or h e r e a f t e r enacted.
Other
wise the s e c u rities will be a c c o r d e d the same exemptions from
taxation as are a c c o r d e d other issues of Tr e a s u r y bonds n ow o u t
standing*
T h e s e prov i s i o n s are s p e c i f i c a l l y set f o rth in the
official circulars r e l e a s e d today.
S u b s c r i p t i o n s will be r e c e i v e d at the Federal R e s e r v e Banks
and Branches, and at the T r e a s u r y Department, Washington.
Banking
institutions gen e r a l l y m a y submit s u bscriptions for account of
customers, but only the Federal R e s e r v e Banks and the T r e asury
Department are a u t h o r i z e d to act as official agencies.
Subscrip
tions for the b o nds from banks and trust companies for their own
account wil l be r e c e i v e d without deposit, but subscriptions from
all others must be a c c o m p a n i e d b y payment of 10 percent of the
amount of b o n d s a p p l i e d for.
The bases on w h i c h subscriptions
will be e n t e r t a i n e d from the various classes of subscribers w ere
publicly a n n o u n c e d y e s t e r d a y and the limitations then f i xed will
apply s e p a ra tely to s ubscriptions for each series of bonds.
The right is r e s e r v e d to close the books as to any or all
subscriptions or classes of s ubscriptions for bonds of either
series at any time w i t hout notice*
The basis of allotment of
subscriptions wil l be p u b l i c l y announced, and payment for any
bonds a l l o t t e d must be m ade or c o m p l e t e d on or b e f o r e De c e m b e r 15,
I9Î 1 ,. or on later allotment, and in the case of 2-1/2 percent
Treasury B o nds of 1967—72 must include accrued interest from
October 20 to De c e m b e r 1 5 , 19^1 ($ 3 ,867 ^ per #1,000 face amount).
The texts of the official
circulars follow:
UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY BONDS OF 1967-72
1 Dated and "bearing interest from October 20, 1941
Due September 15, 1972
Interest payable March 15 and September 15
ADDITIONAL ISSUES
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, December 4, 1941.
1941
Department Circular No. 672
Fiscal Service
Bureau of the Public Debt
I,
OFFERING OF BONDS
1, The Secretary of the Treasury, pursuant to the authority of the Second
[ Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest,
I from the people of the United States for 2-1/2 percent bonds of the United States,
\ designated Treasury Bonds of 1967-72. The amount of the public offering is
I $1,000,000,000, or thereabouts.
In addition to the amount offered for public subJ scription, $50,000,000, or thereabouts, of these bonds may be allotted to Governl ment investment accounts.
II.
DESCRIPTION OF BONDS
1. The bonds now offered will be an addition to and will form a part of the
series of 2-1/2 percent Treasury Bonds of 1967-72 issued pursuant to Department
Circular No. 670, dated October 9, 1941, will be freely interchangeable therewith,
are identical in all respects therewith, and are described in the following quota
tion from Department Circular No. 670:
"1. The bonds Trill be dated October 20, 1941, and will bear interest
from that date at the rate of 2-1/2 percent per annum, payable on a semi
annual basis on March 15 and September 15 in each year until the principal
amount becomes payable.
They will mature September 15, 1972, but may be
redeemed at the option of the United States on and after September 15, 1967,
in whole or in part, at par and accrued interest, on any interest day or days,
on 4 months' notice of redemption given in such manner as 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. From the da,te of redemption designated in any
such-notice, interest on the bonds called for redemption shall cease.
"2. The income derived from the bonds shall be subject to all Federal
taxes, now or hereafter imposed. The bonds shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but shall
-2~
"be exempt from all taxation n o w or hereafter imposed on the principal or
interest thereof "by any State, or any of the possessions of the United
States, or by any local taxing authority.
"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 transfer 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 Department, now or hereafter prescribed, governing United States
bonds."
III.
SUBSCRIPTION AND AI-LOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Subscribers must agree not to sell or
| otherwise dispose of their subscriptions, or of the securities which may be allotted
thereon, prior to the closing of the subscription books. Banking institutions
generally may submit subscriptions for account of customers, but only the Federal
i 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. Subscriptions from banks and trust companies for
their own account will be received without deposit.
Subsci^iptions from all others
must be accompanied by payment of 10 percent of the amount of bonds applied for.
The bases on which subscriptions will be entertained from the various classes of
subscribers are contained in Treasury press statement of December 3, 1941, a copy
I of which is attached.
'
I
l
i
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,
and to close the books as to any or all subscriptions at any time without notice;
and any section he may take in these respects shall be final. Subscriptions for
amounts up to and including $5,000 where the subscribers specify that delivery
be made in registered bonds 90 days after the issue date will be given preferred
allotment.
In each such case a subscriber may not enter any other subscription,
and payment must be made as provided in Section IV of this circular. Allotment
notices will be sent out promptly upon allotment, and the basis of the allotment
will be publicly announced.
IV.
PAYMENT
1. Payment at par and accrued interest from October 20, 1941, for bonds
allotted hereunder must be made or completed op or before December 15, 1941, 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 declaraj tion 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 "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 "by
T the Federal Reserve Bank of its district. Accrued interest at 2-1/2 percent from
October 20, 1941 to December 15, 1941 on $1,000 face amount is $3.8674.
V.
GENERAL PROVISIONS
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 the Treasury to the Federal Reserve Banks
of the respective districts, -to issue allotment notices, to receive payment for
kinds 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,
prescribe supplemental or amendatory rules and regulations governing the offering,
I which will be communicated promptly to the Federal Reserve Banks.
HENRY MQRGENTHAU? JR. ,
Secretary of the Treasuryl
UNITED STATES OF AMERICA
2 PERCENT TREASURY BONDS OF 1951-55
Dated and Bearing interest from December lb, 1941
Due December 15, 1955
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND
AFTER DECEMBER 15, 1951
Interest payable June 15 and December 15
1941
Department Circular No. £73
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, DecemBer 4, 1941
Fiscal Service
Bureau, of the PuBlic DeBt
I.
OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest,
from the people of the United States for 2 percent Bonds of the United States,
designated Treasury Bonds of 1951-55, The amount of the offering is $500,000,000
or thereabouts.
)
II.
DESCRIPTION OF BONDS
1. The Bonds will Be dated DecemBer 15, 1941, and will Bear interest from
that date at the rate of 2 percent per annum, playable semiannually on June 15 and
DecemBer 15 in each year until the principal amount Becomes payable. They will
mature DecemBer 15, 1955, But may Be redeemed at the option of the United States
on and after DecemBer 15, 1951. in whole or in part, at par and accrued interest,
on any interest day or days, on 4 months* notice of redemption given in such
manner as the Secretary of the Treasury shall prescribe.
In case of partial redemp
tion the Bonds to Be redeemed will Be determined By such method as may Be prescribed
hy the Secretary of the Treasury. From the date of redemption designated in any
such notice, interest on the Bonds called for redemption shall cease.
2. The income derived from the Bonds shall Be subject to all Federal taxes,
now or hereafter imposed. The Bonds shall Be subject to estate, inheritance, gift
or other excise taxes, whether Federal or State, But shall Be exempt from all taxation now or hereafter imposed on the principal or interest thereof By any State, or
any of the possessions of the United States, or By any local taxing authority.
i
3. The Bonds will Be acceptable to secure deposits of public moneys, But will
not Bea„r 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 Pnd interest, will Be issued in denominations of $50, $i00, $500, $1,000,
-2-
I
$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 transfer 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
Department, now or hereafter prescribed, governing United States bonds.
III.
I
SUBSCRIPTION AND ALLOTMENT
1, Subscriptions will be received at the Federal Reserve Banks an<i Branches
and at the Treasury Department, Washington. Subscribers must agree not to sell or
otherwise dispose of their subscriptions, or of the securities which may be allotted
thereon, prior to the closing of the subscription books. 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. Subscriptions from banks and trust companies for
their own account will be received without deposit. Subscriptions from all others
must be accompanied by payment of 10 percent of the amount of bonds applied for.
The bases on which subscriptions will be entertained from the various classes of
subscribers are contained in Treasury press statement of December 3, 1941, a copy
of which is attached.
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,
1 and to close the, books as to any or all subscriptions at any time without notice;
and any action he may take in these respects, shall be final. Subscriptions for
I amounts up to and including $5,000 where the subscribers specify that delivery
1 hemade in registered bonds 90 days after the issue date will be given preferred
allotment. In each such case a subscriber may not enter any other subscription,
and payment must be made as provided in Section IV of this circular. Allotment
notices will be sent out promptly upon allotment, and the basis of the allotment
will be publicly announced,
IV.
PAYMENT
1, Payment at par and accrued interest, if any, for bonds allotted hereunder
must be made or completed on or before December 15, 1941, 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 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 bonds
allotted to it for itself and its customers up to any amount for which it shall
he qualified in excess of existing deposits, when so notified by the Federal
1 Reserve Bank of its district.
I
I
I
i
1
I
*
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, ’Federal Reserve Banks are authorized
and requested to receive subscriptions, to make allotments o q . the basis and up to
<
1
the amounts indicated by the Secretary of the Treasury to the Federal Reserve
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,
! prescribe supplemental or amendatory rules and regulations governing the offering,
f which will be communicated promptly to the Federal Reserve Banks.
KERRY MORGENTHAU, JR.,
Secretary of the Treasury,
December ^
19I4J.
STATUTOHI DEBT LIMITATION
AS OF NOVEMBER 30, 19^1
Section 21 of the Second Liberty Bond Act, as amended, provides that the
face amount of obligations issued under authority of that Act, “shall not exceed
in the aggregate $65 ,000,000,000 outstanding at any one time."
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be
outstanding at any one time
Outstanding as of November 3®* 19^1*
Interest-bearing:
Bonds $ 31*76^,998,750
Treasury
Savings (Maturity
6,915 ,203,300
value)*
62 ,171.000
Depositary
73^,339,806
Adjusted Service
Treasury notes
$11,730,501*-,825
Certificates of
2 ,72^,550,000
indebtedness
Treasury bills
1 ,703,300,000
(maturity value)
Matured obligations, on
which interest has ceased
Face amount of obligations
issuable under above authority
follow!
and the
$65,000,000,000
landing at
line as of
$39,^76,712,856
16,158,35^.825
$55,635,067,681
129.T76.toO
h
of
55,76U,W,08l
rity value
9.235,555.919
Reconcilement with Daily Statement of the United States Treasury
November 30» 19^1
Total face amount of outstanding public debt obligations
Issued under authority of the Second Liberty Bond Act,
as amended
Deduct, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
lati obligatio
p i of ob
pile tie r
$55,76^,^,021
1*295*526,8^
$5^,1468,917,187
Add other public debt obligations outstanding but not
subject to the statutory limitation:
Interest-bearing (Pre-War, etc»)
$
196,0^6,600
Matured obligations on which interest
has ceased
12,103*115
Bearing no interest
362,753*025
Total gross debt outstanding as of November 30, 19^1
p current
Ftothe
570.902,ÿo
$55.039.819,927
♦Approximate maturity value*
Principal amount (current redemption value)
according to preliminary public debt statement $5 *619 ,676 ,*406,
pest-beai
m oblìi
fig no i;
f°ssdebt
Fcrdin
■ X f-1 3 .
D e c ember k ,
IllsI
ncîj
19 I+I
S T A T U T O R Y DEBT L I M I T A T I O N
AS OF N O V E M B E R 30, 1 9 4 l ~
Section 21 of the S e cond L i b e r t y B o n d Act, as amended, provides
Hitt that the face amount of obligations i s sued under a u t h ority of that
Act "shall not e x c e e d in the aggregate -165,000,000,000 o u t s t a n d i n g at
any one t i m e . "
1
The fol l o w i n g table shows the face amount of obligations o ut
standing and the face amount w h i c h can still be issued under this
limitation;
Total face amount that may he
outstanding at any one time
\
$65,000,000,000
Outstanding as of November 30, 1941:
Interest-hearing:
Bonds Treasury
$31,764,998,750
Savings (Maturity
value)*
6,915,203,300
Depositary
62,171,000
734^339.806
Adjusted Service
Treasury notes
$11,730,504,825
Certificates of
2.724.550.000
indebtedness
Treasury bills
(maturity value)
1.703.300.000
Matured obligations, on
which interest has ceased
Face amount of obligations
issuable under above authority
$39,476,712,856
16.158.354.825
$55,635,067,681
129.376.400
55.764.444.081
9.235.555.919
Reconcilement with Daily Statement of the United States Treasury
November 30. 1941
iri
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act,
as amended
$55,764,444,081
Deduct, unearned discount on Savings bonds (difference
"between current redemption value and maturity value)
1.295.526,894
$54,468,917,187
Add other public debt obligations outstanding but not
subject to the statutory limitation:
Interest-bearing (Pre-War, etc.)
$
196,046,600
Ü
Matured obligations on which interest
has ceased
12,103,115
>&■
Bearing no interest
362.753.025
570.902.740
$55,039,819,927
uotal gross debt outstanding as of November 30, 1941
*Approximate maturity value. Principal amount (current redemption value)
according to preliminary public debt statement $5,619,676,406.
-0O0128—73
x&üâiÈifc
- 3 ~
issue or on subsequent purchase, and the amount actually received either
upon sale or redemption at maturity during the taxable year for which the
return is made, as ordinary gain or loss*
Treasury Department Circular No* 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the condi
tions of their issue*
Copies of the circular may be obtained from any
Federal Keserve Bank or Branch
- 2 •
Reserve ^nir« and Branches, following which public announcement will be fiftde by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject
any or all tenders, in whole or in part, and his action in any such respect shall
be final,
Faymsnt of accepted tenders at the prices offered mist be made or com
pleted at the Federal Reserve Bank in cash or other immediately available funds
on December 10, 1941» provided, however, any qualified depositary will be per
mitted to make payment by credit for Treasury bills allotted to it for itself
and Its customers up to any amount for which it shall bs qualified in excess of
existing deposits when so notified by the Federal Reserve Bank of its district.
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of treasury) bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted. The
bills shall be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shall be exempt from all taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the posses
sions of the United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are originally sold by
the United States shall be considered to be interest.
Under Sections 42 and
117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of the Reve
nue Act of 1941, the amount of discount at which bills issued hereunder are sold
shall not be considered to accrue until such bills shall be sold, redeemed or
otherwise disposed of, and such bills are excluded from consideration as capital
assets.
Accordingly, the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
TREASURY DEPARTMENT
Washington
POR RELEASE, MORNING NEWSPAPERS,
Friday, December 5. 1941_____ •
The Secretary of the -treasury, "by this public notice, invites tenders
for $ 150*000»000
or thereabouts, of
91-day Treasury hills, to he issued
on a discount basis under competitive bidding.
v>p. Anted
December 10, 1941
. and will mature
The bills of this series will
March 11, 1942— ---------- ,
when the face amount will be payable without interest.
They will be issued in
bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve -Oanks and Branches up to thQ
I
closing hour, two o*clock p. m., Eastern Standard time, Monday, De^ p r
Tenders will not be received at the Treasury Department, Washington.
19^1- =-
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the pointed forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
, i
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 10 percent of the
face amount of Treasury bills applied for, unless the tenders a.re accompanied by
<
an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal^
£
FOR RELEASE, MORNING NEWSPAPERS,
F r i d a y , December 5 . 1 9 4 1 . _________
TREASURY DEPARTMENT
Washington
The S e c r e t a r y o f t h e T r e a s u r y , by t h i s p u b l i c n o t i c e , i n
v i te s te n d e rs f o r 1 x 5 0 ,0 0 0 ,-0 0 0 ,. or th e r e a b o u ts , of 9 1 - f a y T re a s u ry
b ills
t o be i s s u e d on a d i s c o u n t b a s i s un der c o m p e t i t i v e b i d d i n g .
The b i l l s o f t h i s s e r i e s w i l l be d a t e d December 1 0 , 1 9 4 1 , and w i l l
w ith mature March 1 1 , 1 9 4 2 , when t h e f a c e amount w i l l be p a y a b le
and
in
They w i l l be I s s u e d in b e a r e r form o n l y ,
out i n t e r e s t
denominations o f U r O Q « ?
Ii5, 0 0 0 ” l l 0 r000,
*100,000, *500, 000,
and
|1 , 000,000 ( m a t u r i t y v a l u e ; .
r e c e i v e d a t F e d e ,r a l R
T e n d e rs w i l l be
HI |HH
......e s e r v e Banks and
E astern S tan B ran ch es up t o t h e c l o s i n g h o u r , two o ' c l o c k p . m
dard t i m e , Monday, December $ , 19^-1.
T e n d e rs w i l l n o t be r e c e i v e d
a t th e T r e a s u r y D e p a rtm e n t, W a s h in g to n .
E a c h t e n d e r must be f o r
an even m u l t i p l e o f $ 1 , 000, and th e price o f f e r e d ^ m u s t be e x p r e s s e d
on th e b a s i s o f 1 0 0 , w i th n o t more th a n t h r e e d e c i m a l s , . e , g . ,
QQ 92E
F r a c t i o n s may n o t be u s e d .
I t i s u r g e d t h a t t e n d e r s be
made on t h e p r i n t e d form s and f o r w a rd e d in th e s p e c i a l e n v e lo p e s
which w i l l be s u p p l i e d by F e d e r a l R e s e r v e Banks o r B r a n c h e s on
ap p licatio n th e r e f o r .
T e n d e rs w i l l be r e c e i v e d w i th o u t d e p o s i t from i n c o r p o r a t e d
banks and t r u s t com panies and from r e s p o n s i b l e and r e c o g n i z e d
d e a l e r s i n in v e s tm e n t s e c u r i t i e s . , . T e n d e rs from o t h e r s must be
accom panied by payment of 10 p e r c e n t o f th e f a o e a ^ ° “ n^ v0 |nT^ ^ ^
b i l l s * a o p l i e d f o r , u n l e s s t h e t e n d e r s a r e a cco m p an ied by an e x p r e s s
g u a ra n ty o f payment by an i n c o r p o r a t e d bank o r t r u s t company..
I m m e d ia te ly a f t e r th e c l o s i n g h o u r , t e n d e r s W i l l be opened
at th e F e d e r a l R e s e r v e Banks and B r a n c h e s , f o l l o w i n g w hich p u b l i c
announcement w i l l be made by th e S e c r e t a r y o f th e
reasu ry o
a
amount and p r i c e r a n g e o f a c c e p t e d b i d s .
T h o s e
su b m ittin g te n d e rs
w i l l be a d v i s e d o f th e a c c e p t a n c e o r r e j e c t i o n t h e r e o f . . ^ m e
S e c r e t a r y o f t h e T r e a s u r y e x p r e s s l y r e s e r v e s th e r i g h t t o a c c e p t
or r e j e c t any o r a l l t e n d e r s , In whole o r i n p a r t , and h i s a c t i o n
in anv su ch r e s p e c t s h a l l be f i n a l . Payment o f a c c e p t e d t e n d e r s a t
the p r i c e s o f f e r e d must be made or c o m p le te d a t t h e F e d e r a l R e s e rv q
Bank in c a s h o r o t h e r im m e d ia te ly a v a i l a b l e funds on_December 1 0 ,
1 9 4 1 , p r o v i d e d , h ow ever, any q u a l i f i e d d e p o s i t a r y w i l l be per^
r;
m itte d t o make payment by c r e d i t f o r T r e a s u r y | U 1 b a l l o t t e d t o i t
f o r i t s e l f and i t s c u s to m e r s up t o any amount f o r w hich i t s n a i l
be q u a l i f i e d i n e x c e s s o f e x i s t i n g d e p o s i t s when so n o t i f i e d by
th e F e d e r a l R e s e r v e Bank o f I t s d i s t r i c t .
The Income d e r i v e d from T r e a s u r y b i l l s , w h eth er i n t e r e s t o r
g a in from t h e s a l e o r o t h e r d i s p o s i t i o n o f th e b i b l s >
have any e x e m p tio n , a s s u c h , and l o s s from th e s a l e
s
p o s i t i o n o f T r e a s u r y b i l l s s h a l l n o t h a v e any s p e c i a l t r ^ m e n t as
such, under F e d e r a l t a x A c ts now o r h e r e a f t e r e n a c t e d .
The b i l l s
s h a l l be s u b j e c t t o e s t a t e , i n h e r i t a n c e , g i f t , o r o t h e r e x c i e
23-74
2taxes, w h e t h e r Federal or State, but shall be exempt from all t a x a
tion now or h e r e a f t e r i m posed on the p r i n c i p a l or interest thereof
by any State, or any of the p o s s e s s i o n s of the U n i t e d ^ S t a t e s , or
by any local t a xing authority.
For purposes of t a x a t i o n
the
amount of discount at w h i c h T r e a s u r y bills are originally sold by
the U n i t e d States shall be c o n s i d e r e d to be interest.
Under
Sections h2 and 117 (a) (l) of the Internal Revenue Code, as
a m e nded b y S e c t i o n 115 of the Re v e n u e Act of 1941, the amount of
discount at w h i c h bills issued h e r e u n d e r are sold shall not be
c o n s i d e r e d to accrue u n til such bills shall be sold, r e d e e m e d or
otherwise d i s p o s e d of, and suc h bills are ex c l u d e d f r o m c o n s i d e r a
tion as capital assets.
Accordingly, the owner of T r e a s u r y bills
(other than life insurance c o m p anies) issued h e r e u n d e r need
include in his income tax r e t u r n only the diff e r e n c e b e t w e e n the
price paid for such bills, w h e t h e r on original issue or on s u b
sequent purchase, and the amount a c t u a l l y r e c e i v e d either u p o n
sale or r e d e m p t i o n at m a t u r i t y during the taxable year for w h i c h
the return is made, as ordinary gain or loss.
T r e a s u r y Department Cir cu l a r No* ^1S>, as amended, and this
notice, p r e s c r i b e the terms of the Tr e a s u r y bills and g o v e r n the
conditions of their issue*
Copies of the circular may be o b t a i n e d
from any Federal Re s e r v e Ban k or Branch.
- 0O 0-
TREASURY DEPARTMENT
Washington
POS RELEASE, MORHING HESSPAPERS
Friday. V****à>*T 5 . 1941.
P r u a Servie«
2-r - 7
¥
Secratary of the Treasury Morgenth&u announced last night that the
subscription books Tor the current offering of $500,000,000, or thereabouts,
of 2 percent Treasury Sends of 1951-55 and of $1,000,000,000, or thereabouts,
of 2-2/2 percent Treasury Bonds of 2967-72 closed at the close ©f business
Thursday, December 4* except for the receipt of subscriptions for amounts up
to and including $5,000 where the subscribers specify that delivery be Bade
in registered bends 90 days after the issue date.
The subscription books
for each of those issues will be dosed for the receipt of subscriptions of
that class at the do s e of business toaerrew, December 6 «
Subscriptions of either class addressed to a Federal Reserve
or Branch, or to the Treasury Department, and placed in the sail before
12 o'clock midnight of the respective closing days d l l be considered as
having been entered before the d o s e of the subscription books«
Announcement of the amount of subscriptions and the basis of
allotment will probably be asde on Wednesday, December IB*
,a>g6aa^»X5gffft:
V
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
F r * j| , December 5, 19^-1»_________
12/4/41
Press S e r vice
No.
25-75
S e c r e t a r y o f t h e T r e a s u r y Morgenthau announced l a s t
that
night
th e s u b s c r i p t i o n books f o r t h e c u r r e n t o f f e r i n g of
1500,000,000,
1951-55
or thereabouts,
and oi> $ 1 1 0 0 0 , 0 0 0 , 0 0 0 ,
o f 2 p e r c e n t T r e a s u r y Bonds o f
or thereabouts,
of 2 - 1 / 2 p e r c e n t
T r e a s u r y Bonds o f 1 9 6 7 - 7 2 c l o s e d a t t h e c l o s e o f b u s i n e s s T h u rs d ay ,
December k ,
excep t f o r the r e c e i p t
o f s u b s c r i p t i o n s f o r amounts up
to and i n c l u d i n g $ 5 , 0 0 0 where t h e s u b s c r i b e r s s p e c i f y t h a t
d e l i v e r y be made i n r e g i s t e r e d bonds 90 days a f t e r t h e i s s u e d a t e .
The s u b s c r i p t i o n books f o r eac h o f t h e s e i s s u e s w i l l be c l o s e d
for the r e c e i p t
of s u b s c r i p t i o n s o f t h a t
b u s i n e s s to morrow,
Subscriptions
class
a t t h e c l o s e of
December 6 .
of e it h e r c l a s s
R e s e r v e Bank o r B r a n c h ,
addressed to a F ed eral
o r t o t h e T r e a s u r y D e p art m en t,
and p l a c e d
in t h e m a i l b e f o r e 1 2 o ' c l o c k m id n ig h t o f t h e r e s p e c t i v e
closing
days w i l l be c o n s i d e r e d as h a v i n g bee n e n t e r e d b e f o r e t h e c l o s e
of t h e s u b s c r i p t i o n b o o k s .
Announcement o f t h e amount o f s u b s c r i p t i o n s and t h e b a s i s
of a l l o t m e n t w i l l p r o b a b l y be made on Wednesday,
- 0 O0 -
December 1 0 ,
Z-?' ? L
^
tfj1 4 y i
Notices of defficieney were sent to four ‘bondholders
of the Pennsylvania Turnpike Commission today as the Treasury
moved to broaden its test
courts
intended to prove ultimately in the
that the Federal Government has the right
Constitution
under the
to tax the income from State andyminicipal securities
Notices previously had been sent
oj bondholders of the
Triborough Bridge Authority and the ?ort of New York Authority .
Those sent
today were addressed to four
securities of the
trusts
which also hold
Triborough Bridge Authority and the Port of
New York Authority but had not received notices in connection with
their bonds.
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Thursday. D e c e m b e r H-, 19^1.
p ress Se r v i c e
N0, 2 ° < °
Notices of d e f i c i e n c y were
sent to four bond h o l d e r s
of
the P e n n s y l v a n i a Tu r n p i k e C o m m i s s i o n today as the T r e a s u r y m o v e d
to b r o a d e n its test
intended to prove u l t i m a t e l y in the courts
that the Federal G o v e rnment has the right u n d e r the C o n s t i t u t i o n
to t ax the income f r o m State a nd m u n i c i p a l
securities;
Notices p r e v i o u s l y had b e e n sent to a few b o n d h o l d e r s of
the T r i b o r o u g h B r i d g e A u t h o r i t y and the Port of N e w Y o r k Authority.
Those
sent t o day wer e a d d r e s s e d to four trusts w h i c h also hold
securities of the T r i b o r o u g h B r i d g e A u t h o r i t y and the P ort
New Y o r k A u t h o r i t y but h a d not r e c e i v e d notices
with their bonds.
- 0O 0-
of
in c o n n e c t i o n
I
/
f
? /
A j g w Vt/
«
%
United States troops
x - -n
on duty in Netherlands Guiana (Surinam)
will have the novel experience of being paid, partially at least, in
p-V
Dutch coins, manufactured in the
Tfyis was disclosed today
—
t^rpu^c/
I
‘"“ Ih H m __
f
by the Bureau of the Mint i m
^ y J8 J
____ 500
^
_______
w JH
jp that
#QP
0 ten-cent
t/G»
pieces had been completed at the Philadelphia mint* This coin is oneThe guilder is
-C * '
tenth of a guilder*/currently worth .53 of an American dollar*
«+.
v^urinam^
T' The ten— cent/coin is composed of two tl^irde silver and one
i L vj*Tc ^
*
'
third copper. In size it resembles the half*-dime silver piece of the
nineteenth century. > ..j ^
, ,
¿
1
3>
TT I4Tb i1Lr’
.bjf^1t>ears the likeness of Queen Wilhelmina; its reverse a ®
<a
two oak leaves and the year 1 9 4 •
Beneath one oak leaf is a palm
tree, beneath the other is the letter &
"Fw indicating its manufacture
at the Philadelphia mint*
T
n Domestic cpinage in November, 1 9 4 totaled $9*376*102 as
compared w i t h # 7 * £ 9 5 * 5 4 in.the corresponding year in 19^0. Goins
minted i n l t i M M M M ^ November, 19^1* aggregated^
against
167 *921*616
202,325,
in the corresponding month of
119 as
19^ 0*
For the same comparative periodsjthe totals were:
Half dollars* $1,966,953 against $ 9 7 4 5 0 3 * •
a.;/ 0 3 ^ 7 6 . 5 »
'
<~a
Quarter d o l l a r s * $ l ^ i a i p p M as against $i _
»
i 7 b | 7 / 0 0 *> <?
I f Y f y / o O
* b c>
Dimes
—
$
as against fr^loO.lio .Cg 7 b l ,O i l D
^ 2 ,
i/ 7 / 0 7 6
Five» cent 'n l c k elay $
as against
¿/3 &. / 'l^s—
Pennies
as against
i
T R E A S U R Y DEP A R T M E N T
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Sunday, D e c ember 7 j 19^1.________ .
l2/'6/il
Press Service
2S-77
U n i t e d States troops on duty in N etherlands
will have the novel
in D u t c h coins,
experience of b e i n g paid,
G u i a n a (Surinam)
pa r t i a l l y at least,
m a n u f a c t u r e d in the U n i t e d States,
This was d i s c l o s e d today by the Bure a u of the Mint,
said that
which
500,000 ten-cent pieces had b e e n c o m pleted at the P h i l a
delphia Mint
for the D u t c h possession.
of a guilder.
The g u i lder
This coin is o n e - t e n t h
is cur r e n t l y w o r t h
.53 of an A m e r i c a n
dollar.
The ten-cent
S u r inam coin is c o m posed of two-thirds
and o n e - t h i r d copper.
In size it r e s embles
silver
the U n i t e d States half-?
dime silver n i ece of the n i n e t e e n t h c e n t u r y .
The face of the D u t c h coin bears
Wilhelmina;
its r e v erse has two oak leaves
Beneath one oak leaf is a p a l m tree,
letter
f’P",
the likeness
of Q u een
and tne year 19^1•
b e n e a t h the other is the
i n d i c a t i n g its m a n u f a c t u r e at the P h i l a d e l p h i a Mint,
Domestic
coinage in November,
19^1»
t o t a l e d $9>37$>I02 as
com p a r e d w i t h 1 7 , 8 9 5 , 5 ^ 3 i« the c o r r e s p o n d i n g year in i ^ O .
m i nted in November,
19^*1#
aggregated 2 0 2 , 3 2 5 > H 9
Coins
as against
l 6 7 ,9 2 1 ,SlS in the c o r r e s p o n d i n g m o n t h of 1 9 t P*
For the same c o m p a rative pe r i o d s
the totals were:
Half dollars - - -
1 1 ,968 ,Q w37 ;!
Qu a r t e r dollars
1 2 ,103 ,,2 76 .50. as against $ 1 ,3 1 7 ,2 5 1 .50
Dimes
1 3 ,10 s,,110 .6 0 as against $ 2 ,1+70 ,100 .60
Five-cent p i eces - 1
Pennies
- - - - —
S U Iff
76 l.Ol-O.oo a s against
9 7 1 ,503,
2,217,075.00
1 1 ,1+36 , 722.00 as against i19 16 ,6 1 3 ,00 .
0O0-
T R E A S U R Y DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
December 7> 1 9 ^ 1 « _____
P r e s s Service
No.22>~7&
S e c r e t a r y M o r g e n t h a u tonight r e v o k e d all o u t s t a n d i n g
general a nd specific licenses
by Japan and her nationals.
the T r e a s u r y Dep a r t m e n t
The
e f f e c t i f this
action b y
is to p l a c e an immediate and complete
stoppage on all financial
t racle transactions,
a u t h o r i z i n g any t ransactions
and b u s i n e s s dealings,
as w e l l as
in w h i c h J a p a n or her nationals have
any
int e r e s t .
At the
same time the T r e a s u r y issued instructions
--Customs C o l l e c t o r s to p r e v e n t J a p a n e s e nationals
the country.
~o0$~
to all
from l e a v i n g
TREASURY DEPARTMENT,
O f f i c e of the Secretary,
Dec emb er 7 ? 19 ^-1 .
P U B L I C CIRCU L A R NO. g
U N D E R E X E C U T I V E O R D E R NO. S 3 S 9 , APRIL
10, I 9 Î+O, AS AMENDED, AND R E G U L A T I O N S
I S S U E D PU R S U A N T THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN F O R EIGN EXCHANGE, ETC
All general
licenses,
specific licenses,
and a u t h o r i z a
tions of w h a t s o e v e r c h a r a c t e r are h e r e b y r e v o k e d in so far as
they authorize,
on behalf of,
d i r e c t l y or indirectly,
or for the be n e f i t
of,
any tran s a c t i o n by,
Japan,
or any national
thereof.
H. MORGENTHAU, JR.,
S e c r e t a r y of the Treasury.
^Ehis public circular affects Parts 130 and 13ft and w i l l ’be
included in a ppendices to those parts.
S e c .5 ( b ), kO Stat. k m and 9 S 6 ; Sec. 2, U-S Stat. 1 ; 5 L Stat
179 5 Ex. O r d e r S 3S 9 , April 10, 19^-0, as a m e n d e d by Ex. O r d e r
S 7 S 5 ; June 1^, 1§^1, a nd Ex. O r d e r S S 32 , July 26, 19^1;
Regulations. April 10 , 19^0, as a m e n d e d June lL, 1941, and
Jul y 26, 1 9 4 1 .
OR OTHER body or INDIVIDUALS,
op ant nationality, resident within
TH E T E R R IT O R Y
O C C U P IE D
FO R CE S) OF
(IN C L U D IN G
TH AT
J A P A N , O i O F A N Y N A T IO N W H IC H
R E S ID E N T O U T S ID E
TH E U N IT E D
IN C O R P O R A T E D ^ W IT H IN
A N D D O IN G
JA PAN
OR
O R M U N IC IP A L S U B D IV IS IO N
O R AGEN CY
SU CH
O F A N Y N A T IO N W H IC H
A LLY OF JA PA N , a
IN C O R P O R A T E D W IT H IH |S U C H
AN Y COU N TRY OTH ER
B U S IN E S S W IT H IN
I 'S A N
S T A T E S A N D D O IN G B U S IN E S S W IT H IN SU CH
T E R R IT O R Y , A N D A N Y C O R P O R A T IO N
OR
B Y TH E M IL IT A R Y A N D N A V A L
IS
T E R R IT O R Y
AN
A LLY
TH AN TH E
(b )
OF
T IE
U N IT E D
T E R R IT O R Y
STATES
GOVERNM ENT OF
J A P A N , O R A N Y P O L IT IC A L
T H E R E O F , O R A N Y O F F IC E R , O F F IC IA L , AGEN T,
TH ER EO F.
H EN RY M ORGEH TH AU , JR
SECR ETA R Y O F TH E TREASURY
(¿igned) H. MorgenLiuui, Jr.
2
OF
(a)
m
IN D IV ID U A L ,
k
FOR IMMEDIATE RELEASE,
S u n d a y , December 7» 194-1*
S e c r e t a r y M orgenthau t o n i g h t o r d e r e d
C o l l e c t o r s o f Customs and a l l Customs p e r s o n n e l t o
t a k e s t e p s n e c e s s a r y t o p r e v e n t t r a d e b etw een p e r s o n s
i n t h e U n ite d S t a t e s and t h e enemy o r a n a l l y o f th e
enemy, t o p r o h i b i t t r a n s p o r t a t i o n i n t o o r fro m t h e
U n ite d S t a t e s o f s u c h i n d i v i d u a l s and t o h a l t
co m m u n ica tio n s w i t h t h e m ,o u t s i d e o f t h e m a i l -r
The S e c r e t a r y i n h i s o r d e r invoked
S ectio n 3 ( a ) ,
Enemy A c t .
( b ) and ( c )
o f t h e T r a d in g w i t h t h e
H is m e ssa g e t o t h e C ustom s o f f i c e r s
was a s f o l l o w s :
T R E A S U R Y D E P A RTMENT
Washington
FOR I M M E D I A T E RELEASE,
Sunday, D e c e m b e r 7, 19^1»
P r ess Service
No*
S e c r e t a r y M o r g e n t h a u tonight o r d e r e d C o l l ectors of Customs
and all C u s toms p e r s o n n e l to take steps n e c e s s a r y to prevent
trade b e t w e e n p e r s o n s
ally of the
enemy,
in the U n i t e d States and the
to p r o hibit
enemy or an
t r a n s p o r t a t i o n into or fro m the
U n i t e d States of such individuals an d to halt c o m m u n i c a t i o n s
w i t h them.
The S e c r e t a r y in his order
(c)
invoked Section 3 (a),
of the T r a d i n g w i t h the E n e m y Act,
Customs officers was
as follows:
(b) and
His m e s s a g e to the
2
D e c ember 7> 19^1*
TO ALL
C O L L E C T O R S OF CUSTOMS A ND CUSTOMS PERSONNEL*
Section 3(a),
Take all n e c e s s a r y steps to enforce I mmediately reads as
(b), and (c) of the T r a d i n g w i t h the E n e m y Act w h i c h
follows:
«It shall be u n l a w f u l (a) for any p e r s o n in the U n i t e d
the President, g r a n t e d t o ^ such
States, except w i t h the lloense of
enemy, as p r o v i d e d in this
person, or to the enemy, or ally of either d i r ectly or indirectly,
act, to trade, or attempt to trade,
inth
to
or fro m, or for, or on account of, or on b e h a l f of, or
fni the b e n e f i t of, any other person, w i t h k n o w l e d g e or r e a s o n « h L cause to b e l i e v e that such other p e r s o n is an enemy or ally
S'enemy
or is c o n d u c t i n g or taking g r t *
$
£
*
£
£
i v nr* indirectly, for. or on account of, or on Denaii ox,
the b e n efit of, an enemy or ally of enemy.(b) F or any person,
exceot w i t h the l i c ense of the President, to transport or attempt
fn trnnsoort into or from the U n i t e d States, or for any owner,
master
or o t her p e r s o n in charge of a vessel of A m e r i c a n regi
t
L
f l l l t T
S o f S - S ;
Z
l
subject^'or'**citizen^of^an1" e n e m y ^ o ^ a l l y of ¿ m y
uiiiedFs L t e s
oterRhatsfch
Arsons
Governments
o^ c U a L e
ofthe
of' p e rsons a s L a y be
° £ d any
exempted
hereunder b y the I r e s L e n t or b y such p e r s o n as he m ay direct),
hereunder
y
brine: into, or attempt to send, or
i L t o u t I t t r b l i t Into the S n i t e d States, a n? l e t t e r or other
i
o t a
i
t e r m of communication, except in the r e g u l a r
the mail' and it shall be u n l a w f u l for any p e r s o n to
slnd
take* or transmit, or attempt to send, take, or t r a nsmit
,
U n i t e d States, any letter or other writing, book, map,
lian
ol L h l l l a p e r ? picture, or any telegram, cablegram, or
t
f
w i r e l e s s m e s s a g l . V other form f
nr to be delivered, dir e c t l y or indirectly, to an enemy or a i y
of e n e m y provided, however, that any person m ay send, take or
transmit out of the U n i t e d States a n y t h i n g h e r e i n f o r b i d d e n if
ha shall first submit the same to the President, o r ^ to such
officer as the P r e s i d e n t may direct, and shall obtain the
^
)fxicer as une
y u n der suoh rules and regulations,
the
President,
or consent of
shall be p r e s c r i b e d by the P r e s i - ^
and w i t h such exemptions, as
dent* "
S ’
!
- 3 ~
The w o rds "enemy" and "ally of enemy" under Section 2 of the
T r a d i n g w i t h the E n e m y Act include —
(a) any individual, p a r t
nership, or other b o d y of individuals, of any nationality, r e s i
dent w i t h i n the t e r r i t o r y (including that oc c u p i e d b y the mi l i t a r y
and naval forces) of Japan, or of any nation w h i c h is an ally of ;
Japan, or resident outside the U n i t e d States and doing bu s i n e s s
w i t h i n such territory, and. any c o r p o ration i n c o r p o r a t e d w i thin
such t e r r i t o r y or i n c o r p o r a t e d w i t h i n any country other than the
U n i t e d States and doing b u s iness w i t h i n such territory (b) the
(Government of J a p a n or of any nation w h i c h is an ally of Japan,
or any pol i t i c a l or m u n i c i p a l s u b d ivision thereof, or any officer,
official, agent or agency thereof*
H E N R Y M O R G E N T H A U , JR.,
S e c retary of the Treasury.
z
(2) Mo wi thdramls whatsoever are allowed from any account
in any banking institution« if Japan or any national of Japan« has
any interest in such account»
this includes withdrawals for
living expenses as well as for any other purpose*
(3) $01 withdrawals whatsoever are allowed from any safe
deposit box by Japan or any national of Japan« and access is not
allowed to any safe deposit box in the contents of which Japan
or any national of Japan has any interest»
(4) $o remittances in any amounts whatsoever may be made to
Japan or any national of Japan« wheresoever located« including
remittances to United States citizens resident in Japan*
(6)
Ho trade transaction with any part of the world* including
trade with Latin America« in which Japan or any national of Japan
has any interest may be effected»
■vti£ SSm
'¿SSteiaSK
m
9-
tmk&wf mpàmwm
WASHIE GTOIi
POR I N D I A T I RELEASR
Decomber 8* I M I *
$""* 2
Prea» Sorrise ^
fili Treaaury Department calla thè attentici* of eli banking
inatìtutiona and other interested persona to thè fact that thè
revocatici! by thè f m w r y
Department io Publio ClreuXar Ko» 0 of
all outatendine generai and speoific licer*tea in ao far aa they
authorlse «ny tranaaction by# or on babai f of » or far thè benefit
of« dapali and ber sationaie haa» aaxmg other thinga, thè feìlowing
•i golflena t lunediate offiata t
(l)
So dipanate aationai noe haa thè atatua ef a geaerally
lioenaed national.
la thia conneotion, atfcention ie ealled to
thè foilowingt
(a)
dapaneae nati «ma la reaidont In thia eouatry
are bleoked under thè freeaing arder» irre«poetive ef
thè iength of tholr roaidoneo in thia eountryi
(b)
So Japaneao beali« buaìneea onterpriao or ether
orgenisation noe haa tho atatua of a gonoraily Uooneod
national» inoluding tho Yokohana Specie Bank» Ltd» and all
ita braaehaa» thè Bank ef Taiuan» thè Burnitene Bank of laeuii,
tho Boni tono Bank of California» tho Suni tono Bank of Boatti#»
and tho Paelfie Bank» Honolulu»
ivsv'-'vìfrì-iur-jv>
M B
¡ÉS
WÈ
•^a>v ,r ? a «
H
-t’-iy.1^
I
TREASURY DEPARTMENT
-W a s h i n g t o n
for
immediate
P r ess
No.
release
Service
2g~g0
The T r e a s u r y D e p a r t m e n t calls the a t t e n t i o n of all "banking
institutions and. other interested, p e r s o n s to the fact that the
revocation "by the T r e a s u r y D e p a rtment in P u b l i c .Circular No. 8
of all o u t s t a n d i n g general a n d specific licenses in so far as they
authorize any t r a n s a c t i o n by, or on b e h a l f of, or for the benefit
of, Japan a nd h er n a t i o n a l s has, a m ong other things, the f o l l o w i n g
significant i m m e d i a t e effects:
(1 ) No J a p a n e s e national n o w has the status of a. g e n e rally
l i c e n s e d national.
In this connection, attention is c a l l e d to
the following:
(a)
J a p a n e s e nationals resident in this country
are b l o c k e d u n d e r the f r e e z i n g order, irres p e c t i v e of
the l e n g t h of their r e s i d e n c e in this country;
(b) No Ja p a n e s e bank, bu s i n e s s enterprise or other
organization' n o w has the status of a g e n erally l i c e n s e d
national, inc l u d i n g the Y o k o h a m a Specie Bank, Ltd. and all
its branches, the B a n k of Taiwan, the Sumj-tomo B a n k of
Hawaii, the Sumitomo B a n k of California, the Sumitomo
B a n k of Seattle, and the P a c i f i c Bank, Honolulu.
(2) No w i t h d r a w a l s w h a t s o e v e r are a l l o w e d from any
account
in any b a n k i n g institution, if J a pan or any national of Japan,
has any interest in such account.
This includes w i t h d r a w a l s
for living expenses as well as for any otner purpose.
(-5 ) No w i t h d r a w a l s w h a t s o e v e r are a l l owed from any safe
deposit b o x by J a p a n or ah y na t i o n a l of Japan, and access is not
a l lowed to any safe deposit b o x in the contents of w h i c h J a p a n
or any nat i o n a l of J a pan has any interest.
(A)
No r e m i t t a n c e s in any amounts w h a t s o e v e r may be made to
J a o a n or any national of Japan, w h e r e s o e v e r located, i n c l u d i n g
r e m i ttances to U n i t e d States citizens resident in Japan.
(c;) No trade transaction w i t h any part of the world, i n c l u d — ^
ing trade w i t h L a t i n America, in w h i c h Japan or any n a t i o n a l or
Japan has any interest may be effected.
OoO
tm
m
n
m PA m m n
Washington
Press Sendee
for immediate release.
Monday. December 8.
1911
" 8^ i
Secretary of the Treasury Morgenthau today announced the subscription figure«
and the bases of allotment for the offering ©* a percent Treasury lends of 1951-55
and of 2-1/2 percent Treasury Bonds of 1967-72.
For ths 2 percent Treasury Bonds of 1951-55# reports received from the
Federal Reserve Banks show that subscriptions total approximately $4*495,000,000.
Subscriptions in ¿mounts up to snd including $5*000, shore ths subscribers speci
fied that delivery be nade in registered bonds 90 days after the issue date, sere
allotted in full.
All other subscriptions were allotted 11 percent on a straight
percentage basis* with adjustments, where necessary* to the $100 denomination.
Far the 2-1/2 percent Treasury Bonds of 1947-72* reports received from ths
Federal Reserve Banks show that subscriptions total approximately $6*955*000,000.
Subscriptions in amounts up to and including $5*000, whore the subscribers speci
fied that delivery be mads in registered bonds 90 days after the Issue date, were
allotted in full*
All other subscriptions were allotted
I¿"percent on a straight
percentage basis, with adjustments, where necessary* to the $100 denomination.
Further details as to subscriptions and allotments «dll be announced when
final reports are received from the Federal Reserve Banks«
T R E A S U R Y DEPARTMENT
Washington
for
Press Service
No.- 2g~él
,
D e c e m b e r g», 19^1*
immediate
Monday,
release
Sec r e t a r y of the T r e asury M o r g e n t h a u today ann o u n c e d the
subscription figures
and the bases
of allotment for the o f f e r i n g
of 2 percent T r e a s u r y B o n d s of 1 9 5 1~55
Bonds of
19 6 7 - 7 2 .
For the
show that
mately $ ^, 695 , 0 00,0 0 0 T . Subsc r i p t i o n s
$ 5 ,000, w h ere the s ubscribers
r egistered b o nds
reports r e c e i v e d
subscriptions
total approxi
in amounts up to and including
s p e c ified that d e l ivery be made
in
9 ® days after the issue date, were a l l o t t e d in
All other subscriptions were a l l o t t e d 11 percent
straight p e r c e n t a g e basis,
the
of 1 3 5 1 - 5 5 »
2 percent T r e a s u r y B o nds
from the Federal R e s e r v e Banks
full.
oP 2-1/2 percent Treasury
w i t h adjustments,
on a
where necessary,
to
$100 denomination.
For the 2-1/2 percent T r e a s u r y B o nds
received from the Federal R e s e r v e Banks
total a p p r o x i m a t e l y ^ 6,9557 000,000,
of 1967-72;
show that
S u b s c r iptions
and i n c luding $ 5 , 000, w h e r e the subscribers
be made in r e g i s t e r e d bonds
reports
subscriptions
in amounts up to
s p e cified that
delivery
90 days after the issue date, wer e
allot t e d in full, x All other subscriptions were
on a straight p e r c e n t a g e basis,
allotted
w i t h adjustments,
15 percent
where necessary,
$100 denomination. ■
to the
F u r ther details
as to s u bscriptions
and allotments w i l l be
a n n ounced w h e n final reports are r e c e i v e d from the Federal R e s e r v e
Banks.
-0O0—
-
2
-
which any blocked national, including a national of Japan, or a person
acting for or on behalf of such a nations^ has any interest, is
exposing himself to criminal prosecution, to a fine of $1 0 , 000 , and to
imprisonment for ten years.
Any person aiding in, abetting, advising,
or conspiring in the destruction, secreting, or alteration of any such
document is similarly subject to these criminal penalties.
¿r
S‘i j
b -
c
>
TREASURY DEPARTMENT
WASHINGTON
o
FOR IMMEDIATE RELEASE
December 8 , 1941.
^
Press Service
¿S' - * 7-
Secretary Morgenthau announced
Swag that Treasury
agents had taken custody of the premises of Japanese "banking and
"business enterprises throughout the United States.
whn
1 T lf'.l Viri Ai"!
n m n ncr
n tb e r «
" h n n lr
o v a m in o T * a
nn-i a + f t m o
Treasury personnel,
/s-P-P-i r t a •*»«»
«virl
of a ll persons to the premises of such enterprises and to prevent the
destruction or removal of their "books, records and other property.
The Secretary arranged the precautionary measure through
telegrams yesterday to the presidents of a ll Federal Reserve Banks,
whom he requested to obtain the cooperation of local police wherever
necessary to carry out his instructions.
Secretary Morgenthau
!»that the presence of Treasury
Department personnel had forestalled numerous attempts to remove
securities and other valuable documents from the premises of Japanese
enterprises.
In one instance in San Francisco, Japanese nationals
were prevented from removing from a Japanese company securities
estimated as having a value of $40,000 or more.
The Secretary supplemented his announcement by stating that
any person destroying, secreting, or altering any record, paper, or
other document relating in any way to any property or transaction in
T R E A S U R Y D E P A RTMENT
Washington
FOR I M M E DIATE RELEASE,
Monday, Dec e m b e r S, 1941.
Press Service
No. 23-82
S e c r etary M o r g e n t h a u a n n o u n c e d ¡today that T r e asury agents h a d
taken custody of the premises
enterprises throughout
included,
of J a p anese b a n k i n g and'business
the U n i t e d States.
among others,
b a n k examiners,
Treasury investigators,
h ad special
Customs
officers,
who
and
instructions to prevent the
access of all persons to the premises
prevent the d e s t r u c t i o n or removal
Treasury- personnel,
of such enterprises
of their books,
records
and to
and
other property.
The S e c r e t a r y a r r a n g e d the p r e c a u t i o n a r y measure t h r o u g h
telegrams y e s t e r d a y to the presidents of all Federal R e s erve Banks,
whom he r e q u e s t e d to obtain the c o o p e r a t i o n of local police wh e r e v e r
necessary to carry out his instructions.
Secretary M o r g e n t h a u said that the p r e sence cf T r e a s u r y D e
partment p e r s o n n e l had f o r e s t a l l e d numerous attempts to remove
securities and other v a l uable documents from the premises of JapajQggg e n t e r p r i s e s . In one instance in San Francisco, Japanes„e
nationals wer e p r e v e n t e d from r e m o v i n g from a Ja p a n e s e company
securities e s t i mated as h a v i n g a value of $4-0,000 or more.'
The S e c r e t a r y s u p p l e m e n t e d his announcement by stating that
m v r puersua
e r s o n ucbui
destroying,
or —a*-----l t ering
ujiug, secreting,
o
a —any record,
.
+.paper,
other
document
r
e
l
a
t
i
n
g
in
any
w
ay
to
any
pr
o
p
e
r
t
y
or
trans
13?
w h i c h ctiij
any b l o c k e d national,
including
a national
action in /Auiuii
------ • -------------^ m
, , o »f ,
Japan
or a p e r s o n acting for or on b e half of such a national, has
any i n t e r e s t ’ is e x p osing himself to criminal prosecution, to a
fine of $10,000, and to imprisonment for ten years.
Any p e r s o n
adding in, abetting, advising, or c o n s p i r i n g in the. destruction,
aecreti uo ) or a l t e r a t i o n of any such document is similarly subject
to these criminal penalties.
■
A .
-
______»
. *
1
T.rmr
oOo
+-
o m r
&
,1r»
V
nr*
TREASURY DEPARTMENT
Washington
FOR RELEASE, IfOHHIHG NEWSPAPERS,
Tuesday« December 9« 1941.
12 / g / u
Press Service
* 3
The Secretary of the Treasury announced last evening that the tenders for
$150,000,000, or thereabouts, of ?X-day Treasury bills, to be dated December ID,
1941, and to mature larch 11, 1942, which were offered on December 5, were
opened at the Federal Reserve Banks on December 6.
The details of this issue are as follows:
Total applied for - $403,171,000
Total accepted
- 150,027,000
Range of accepted bids:
High
X*>w
Average price
(23 percent
- 100«
- 99*9X7
- 99.926
Equivalent rate approximately 0,328 percent
«
m
«
0.293
”
of the amount bid for at the low price was accepted)
1
T R E A S U R Y DEP A R T M E N T
Washington
: FOR RELEASE, M O R N I N G NEWSPAPERS,
! Tuesday, D e c e m b e r 9, 19^1*_______
'1 T 2 / S A 1
Press Service
No. 26-S3
The S e c r e t a r y of the T r e asury a n n o unced last
- tenders for $ 15 0 ,000, 000,
to be dated D e c e m b e r 10,
or thereabouts*
19^-1,
of 91~&siy T r e a s u r y bills.,
and to mature M a r c h 11,
were offered on D e c e m b e r 5> were
: on December g.
evening that the
19 ^ 2 , w h i c h
opened at the Federal R e s erve Banks
v
The details
of this
issue are as follows:
Total a p p l i e d for - 1^-03,171» 000
Total a c c e n t e d
150,027,000
Range of a c c e n t e d bids:
High
j
-
Low
Average
Price -
100.
9 9 .9 17 Equivalent rate a p p r o x i m a t e l y 0*32$ percent
99*926
"
”
"
O .293
"
(23 percent of the amount b i d for at the l ow price was accepted)
-0 O 0 -
%
Release No. 97 — 2—
Our committees have performed a splendid task in organisation and
promotion work to date.
Now that war is on us, let every naan, woman, and
child be given the opportunity and urged to purchase bonds on a regular plan.
I know you and your committees will perfora great service*
HENRY I80R3ENTHAO, JR.,
jf
Secretary of the Treasury.*
-oOo'
No. 97
December 9f X9Ul
FOR IMMEDIATE RELEASE
WASHINGTON, D.G* —
The campaign to sell Defense Bonds and Stamps must be stepped!-
up immediately. Secretary Morgenthau has informed all State Chairmen and State Admin
istrators of the Defense ‘
Savings Program.
Defense Savings workers throughout the Nation must, the Secretary stated, »,.,.pJ
double their activities and conduct a sales campaign which by its response will demon-!
strate to our enemies that America to a man is behind our greatest national test.«
j
The full text of the telegram to Defense Savings Chairmen and Administrators
was as follows:
"The Declaration of War places a new and increased responsibility
on Defense Savings Coasts!ttees.
You should at once advise all local committees to redouble their
activities and conduct a sales campaign which by its response will demonstrate
I
to opr enemies that America to a man is behind our greatest national test.
j
It is suggested that payroll allotment participation be increased,
that each locality push the bank draft plans, stamp banks, school programs,
iv •
'
and other plans to secure increased consistent purchasing.
Also local committees should fora groups to solicit limit purchasing
of all series of bonds for
19bX*
Increased cooperation in merchandising of
all financial groups should be asked.
(more)
1
Our c om it tees have performed a splendid task in organisation and
promotion work to date.
How that war is on us, l e t every man, woman, and
child be given the opportunity and urged to purchase bonds on a regular plan.
I know you and your committees will perform great service#
HEHKT M0R3SNTMU, JR#,
Secretary of the Treasury."
- 0O0-
December 9ÿ I 9I4X
FOR IWIffiDIATE RELEASE
WASHINGTON', D»C*
The campaign to s e ll Defense Bonds and SLamps must be stepped
up immediately, Secretary Morgenth&u has informed a ll State Chairmen and State Admin- I
istrators of the Defense Savings Program*
Defense Savings workers throughout the Nation must, the Secretary stated, »__ re.
double their activ itie s and conduct a sales campaign which by its response will demon
strate to our enemies that America to a man is behind our greatest national test .®1
The fu ll text of the telegram to Defense Savings Chairmen and Administrators
was as followss
"The Declaration of War places a new and increased responsibility
on Defense Savings Committees*
You should a t once advise a ll local committees to redouble their
a ctiv itie s and conduct a sales campaign which by its* response will demonstrate
to our enemies that America to a man Is behind our greatest national test*
I t is suggested that payroll allotment participation b© increased,
|
that each locality push the bank draft plans, stamp banks, school programs,
and other plans to secure increased consistent purchasing.
Also local committees should form groups to s o lic it lim it purchasing
of a ll series of bonds for 19Ul*
Increased cooperation in merchandising of
a ll financial groups should be asked*
1
*
Release No. 97 —2—
^ Our committees have performed a splendid task in organization and
promotion work to date.
Now that war is on us, le t every man, woman, and
child be given the opportunity and urged to purchase bonds on a regular plan*
I know you and your committees will perform great service.
.HENRY MORGENTHAU, JR.,
Secretary of the Treasury. 11
- 0O0-
Date
SPECIAL— R U S H
SÌIDS ®US
Time
' Æ
Date
fIled
Si .flos ^
For release to:
■.............. .............................
i Defer
December 9^ 19 I1I
------ -
for
I ¡retary
IMMEDIATE RELEASE
cjj jpaign1
WASHINGTON, D.C. — The campaign to s e ll Defense Bonds and Stamps must be stepped
lirica to
up immediately, Secretary Morgenthau has informed a ll State Chairmen and State Admin
1
istrato rs of the Defense Savings Program.
Ê
iinisti
Defense Savings workers throughout the Nation must, the Secretary stated, “....re
double their activ ities and conduct a sales campaign which by its response will demon
I spor
strate to our enemies that America to a man is behind our greatest national test."
The ^ S S L text of the telegram to Defense Savings Chairmen and Administrators
I dout
was as follows:
I its
’•The Declaration of War places a new and increased responsibility
I Iûan
on Defense Savings Committees.
"You should a t once advise a ll local committees to redouble their
I ine]
a ctiv ities and conduct a sales campaign which by its response will demonstrate
I^
to our enemies that America to a man is behind our greatest national test.
1
I cons
I t is suggested that payroll allotment participation be increased,
I
that each lo cality push the bank draft plans, stamp banks, school programs,
j
; ! pure
and other plans to secure increased consistent purchasing.
I ÜN
"Also local committees should form groups to s o lic it limit purchasing
of a-11 series of Bands for 191*1«
Increased cooperation in merchandising of
a ll financial groups should be asked.
4
i
rore)
I zat
;! ag
T R E A S U R Y D EPARTMENT
Washington
FOR I M M E DIATE RELEASE,
December 9. 19^1,______
WASHINGTON,
Stamps must be
D-. C. —
The
campaign to sell Defense Bonds
s t e pped up immediately,
formed all State
and
Sec r e t a r y M c r g e n t h a u has
Chairmen and State Admini s t r a t o r s
in
of the D e f ense
Savings Program.
Defense Savings workers throughout
Secretary stated,
11
the Nation must,
the
redouble their activities and conduct a sales
campaign w h i c h by its re s p o n s e will d e m o nstrate to our enemies
America to a man is b e h i n d our greatest
The text
that
national test."
of the te l e g r a m to D e f ense Savings C h a irmen and
Administrators was as follows:
"The D e c l a r a t i o n of War places
a ne w and inc r e a s e d r e
s p o n s i b i l i t y on Defense Savings Committees,
"You s h ould at once advise all local
double their activities and conduct
committees to r e
a sales campaign w h i c h by
its re s p o n s e will d e m o n s t r a t e to our enemies that A m e r i c a to a
man is b e h i n d cur greatest
"It
increased,
banks-,
test.
is s u g g e s t e d that pa y r o l l allotment p a r t i c i p a t i o n be
that
eac h locality push the b a n k draft plans,
school programs,
consistent
national
stamp
and other plans to secure i n c r e a s e d
purchasing.
"Also local
committees
p u r c h a s i n g of all series
should form groups to solicit
of Bonds
for ljjfcl
tion in m e r c h a n d i s i n g of all financial groups
limit
Increased coopera
should be asked.
"Our committees have p e r f o r m e d a s p l endid task in o r g a n i
zation and p r o m o t i o n w o r k to date,
N ow that war
is on us,
let
-
every man,
woman,
2
-
and child be given the o p p o rtunity and
u r ged to purchase bonds
on a re g u l a r plan.
your c o m m ittees will p e r f o r m great
I k n o w you and
service.
H E N R Y MORG-ENTHAU,
JR.,
S e c retary of the Treasury."
oOo-
TP\
(2)
COTTON CARD STRIPS, COMBER WASTE, U P WASTE, SLIVER WASTE, AND ROVING WASTE,
'WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas
commencing September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33-1/3 percent of the
quotas shall be filled by cotton vi/astes other than card strips and comber
wastes made from cottons of 1-3/16 inches or more in staple length in the
case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany and Italy:
Country of
Origin
United Kingdom ... .
Canada ..........
France ...........
British India ....
Netherlands ..... .
Switzerland .....
Belgium .........
Japan ..... ......
China ...........
Egypt ...........
Cuba ............ .
G e r m a n y ..... ..
Italy ...........
Total
1/
:
:
(In Pounds)
Established
TOTAL IMPORTS : Established
TOTAL QUOTA
Sept. 20,1941, : 33-1/3% Of
to Nov.29.1941 : Total Quota
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
434
231,607
—
12,207
—
—
—
1, ¿441,152
75,807
22,747
14,796
12,353
21,263
-
25,443
7,088
5,482,509
244,248
1,599,386
76,329
—
—
—
—
—
Imports Sept;
20, 1941, to
Mov. 29. 19111/
434
J
_
_
_
-
434
Included in total imports, column 2.
(
4
FOR IMMEDIATE RELEASE
December 9, 194-1
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5, 1939,
and December 19, 1940, as follows, during the period September 20, 1941 to
November 29, 1941, inclusive:
COTTON HAVING A STAPLE OF LESS THAN l-ll/l6 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC
TURE OF BLANKETS AND BUNKSTING, AND OTHER THAN LINTERS). Annual quotas
commencing September 20, by Countries of Origin:
(In Pounds)
:
Staple length less
:
than l-l/8n
:
: Imports Sept.
: Established : 20, 1941 to
:
Quota
:Nov. 29. 1941
Country of
Origin
Egypt and the AngloEgyptian Sudan .....
Peru ..... ............
British India ........
China ................
Mexico ...............
Brazil ...............
Union of Soviet
Socialist Republics .
Argentina ............
Haiti ................
Ecuador ..............
Honduras ..... .......
Paraguay .............
Colombia .............
I r a q .................
British East Africa ..
Netherlands East
Indie s ........ .
Barbados .............
Other British West
Indies l/ ..........
Nigeria ..............
Other British W e s t '
Africa 2 / ..... .
Algeria and Tunisia .. .
247,952
783,316
247,952
2,003,433
1,370,791
8,883,259
618,723
-
8,883,259
618,723
—
210
475,124
5,203
237
9,333
752
871
124
195
2,240
—
9,333
-
43,451,566
2,056,299
64,942
2,626
6,068,494
2,056,299
—
—
2
3,808
—
435
506
—
ou an
u 'v jn .u .
ow ao u
/
0
—
—
21,321
5,377
16,004
-
-
29,909
—
-
12,554
—
—
30
-
—
30,139
30
—
—
—
-
2,002
1,634
—
—
689
au u
—
—
45.656.420
9,759,507
14,516,882
Total
and
Tobago.
,
Bermuda,
Jamaica,
Trinidad,
1/ Other than Barbados
D ii C l
—
-
71,388
n+.Vi^r* Fr,p>'nr'.h Afri fifi. 2/
:Staple length 1-1/8" or more
:
but less than 1 -11 /16"
:
: Imports Sept,
: Established : 20, 1941 to .
:
Quota
: Nov. 29. 1941
•
2/ Other than Algeria, Tunisia, and Madagascar.
8^124.831_
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, December 9, 1941.
Press Service
No. 28-85
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President's proclamations of.September 5, 1939,
and December 19, 1940, as follows, during the period September 20, 1941 to
November 29, 1941, inclusive:
COTTON HAVING A STAPLE OF LESS THAN 1-11/l6 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANUFAC
TURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas
commencing September 20, by Countries of Origin:
Country of
Origin
Egypt and the AngloEgyptian Sudan ......
Peru ; ...;............
British India ........
China ................
Mexi co i..............
Brazil ...............
Union of Soviet
Socialist Republics .
Argentina .. *..........
H a i t i .... .......... .
Ecuador ..............
Honduras .... ;........
Paraguay .............
Colombia....... .....
Iraq .;...... . ;..... .
British East Africa ...
Netherlands East
Indies .............
Barbados ........... ..
Other British West
Indies l/ ..........
Nigeria ..............
Other British West
Africa 'J|! ;..... *...
Algeria and Tunisia ...
Other French Africa 3/.
(in Pounds)
Staple 1ength less
:
than 1-1/8",
: Imports Sept.
:
Established : 20", 1941 to
: Nov. 29, 1941
Quota
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
237
9,333
752
871
124
195
2,240
247,952
-
8,883,259
618,723
210
-
9,333
—
-
Staple length 1-1/8 or more
but less than 1-11/16"
Imports Sept.
20, 1941 to
Established
Nov. 29. 1941
Quota
43,451,566
2,056,299
64,942
2,626
-
3,808
435
506
-
-
6,068,494
2,056,299
—
—
2
—
6
—
—
—
-
29,909
30
71,388
-
—
12,554
—
21,321
5,377
30
30,139
-
-
-
2,002
1,634
16,004
689
-
-
-
—
Total
9,759,507
45.656.420 , , 8.124.831
14.516.882
JL/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2/ Other than Gold Coast and Nigeria.
Zj Other than Algeria, Tunisia, and Madagascar.
(2 )
COTTON CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE,
WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE, Annual quotas
commencing September 20, by Countries of Origin;
Total quota, provided, however, that not more than 33-1/3 percent of the
quotas shall be filled by cotton wastes other than card strips and comber
wastes made from cottons of 1-3/16 inches or more in staple length in the
case of the following countries: United Kingdom, Prance, Netherlands,
Switzerland, Belgium, Germany and Italy:
__________________________________ (in Pounds)____ ______________________
: Established
TOTAL IMPORTS
; EstaDlished
Imports Sept
Country of
f TOTAL QUOTA
Sept. 20, 1941 : 33-1/3# of
20’l941 to
-- -- ÇJÀFAn _______ ?________________ to Nov, 29,1941 : Total Quota
Nov. 29.19411/
United Kingdom ....
Canada ............
France ............
British India .....
Netherlands .......
Switzerland .......
Belgium...........
Japan .............
China .............
Egypt .............
Cuba ..............
Germany...........
Ital y .............
Total
1/
4,323,457
239,690
227,420
69,627
' 68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
434
231,607
12,207
~
5,482,509
244,248
-
Included in total imports, column 2.
-oOo-
1,441,152
’
’ 75,807
- _
22,747
14,796
12 !853
_
434
-
25,443
7,088
1,599,886
434
PRESS RELEASE:
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption as of November 29,
1941, under the quotas for the twelve months commencing October 1, 1941,
provided for in the Inter-American Coffee Agreement, proclaimed by the
President on April 15, 1941, as follows:
Country of Production
: Quota Quantity
:
(Pounds)
Authorized for Entry
: For Consumption
:
(Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,364,853,662
462 , 698,802
29,358,129
11,795,051
17,626,703
22,044,457
94,298,370
78,611,627
40,355,291
3,208,883
73,098,231
31,311,581
3 , 668,676
36,442,699
238,746,027
78,850,887
9,177,430
1,428,454
8,108,564
13,905,755
472,852
U , 107,690
17,105,762
523,235
417,887
8,965
2 , 422,70 6
36,904
17,213,035
9,906,849
19,156,274
7,855,945
3,771,864
621,009
Non-signatory Countries:
British Empire, except
Aden and Canada
Kingdom of the Netherlands
and it s possessions
Aden, Yemen, and Saudi
Arabia
Other countries not
signatories of the In terAmerican Coffee Agreement
11,956,391
(Import quota filled )
(Prepared —Appeals and Protests (Quota Unit)
Bureau of Customs)
T R E A S U R Y DEPARTMENT
Washington
ALEASE
FOR I M M S D I A
Wednesday, D e c ember 10,
Press Service
No. 2 g - g 6
1941.
The B u r e a u of Customs a n n o u n c e d today p r e l i m i n a r y figures
ing the quantities
of N o v ember 29,
ing October 1,
ment,
show
of coffee a u t h o r i z e d for entry for cons u m p t i o n as
1941,
19^1?
u n der the quotas for the twelve months
p r o v i d e d for
p r o c l a i m e d b y the Pre s i d e n t
Country of P r o d u c t i o n
:
:
commenc
in the Inter - A m e r i c a n Coffee Agreeon April 1$|
Quota Quantity
(Pounds )
:
:
ê r\}Í-1
J-> ■1,
as f o l l o w s :
Auth orized for E n t r y
For C o n s u m p t i o n
(pounds )
Signatory Countries:
Brazil
Colombia
Costa R i c a
Cuba
D o m inican R e p u b l i c
Ecuador
El Salvador
G-uat emala
Haiti
Honduras
Mexico
Nicaragua
Peru
Ven e z u e l a
1,
364,É&3, 662
462,,09g, èpe
29:.35 s, 129
1 1 ,1795, 051
17:1 626 ,703
22 ,,344, 457
94,r29g, 370
7$,,6 1 1 ,627
4o,.355, 291
3:,208* gg3
73:,09g ,rp rujn
3I ;RII boi
1J ),66g, 676
36,,442, 699
23S, 746, 027
76, 650 ,gg7
177
*1 i,430
n9,
X ;42g, 454
6 ,log, 564
1x 1j ,905 ,755
472 ,652
X4| 10 7 ,690
17, 10 5 ,762
523 ,235
4i7, gg7
6 ,965
O 422, 706
2,
36, 904
17;,2 13 ,335
r\ 906 ,g 49
J;
B r i t i s h Empire, except
Aden and C a n a d a
K i n gdom of the N e t h e rlands
and its o ossessions
Aden, Yemen, and Saudi
Arabia
Other countries not
signatories of the InterAmerican Coffee Agreement
roj
—-
Non-s i g n a t o r y Countries:
19;,1 5 6 ,
yj
,771,
g64
1 1,956,391
- 0O 0-
7, 655, 945
6 2 1 ,009
(Import q u ota f i lled
1
- 2 -
:
Established Quota ~: Unit of : Imports as~nf{
: Period & Country : Quantity : Quantity: Nov« 29« 19|1
Commodity
S ilv e r or black foxes,
fu r s , and a r t i c l e s :
Foxes valued under
$250 e a. and whole
furs and skins
12 months from
December 1 , lpiiO
Canada
Other than Canada
12 months from
December 1 , 19k0
T ails
70,000
Number
30,000
11
5,000
(Import quota
filled)
(Import quota
filled)
Piece
(Import quota
filled)
Paws, heads, or other
separated p arts
it
500
Pounds
(Import quota
filled) 1
Piece p lates
it
550
Pounds
36k !
A r tic le s , other than
piece p lates
it
500
Units
Crude petroleum, topped
crude petroleum and
fu el o i l
Calendar year
Venezuela
1,913,01*9,600
Netherlands J , 5 7 8 ,8 0 6 ,2 0 0
Colombia
Other Countries
Molasses and sugar
sirups containing
soluble nonsugar
solid s equal to
more than
of
t o ta l soluble solids
6%
Gallon
it
86,9 5 6 ,8 0 0
it
138,587,1*00
it.
51 1
1,71*7,331,883
(T ariff rate
quota filled)
(T ariff rate
quota filled)
(T ariff rate
quota filled)
)
Calendar year
1,5 0 0 ,0 0 0
Gallon
(T ariff rate g
quota filled)
1
- 0O0-
«
(Prepared - Appeals and P ro te sts (Quota U n it),
Bureau o f Customs)
i
PRESS RELEASE
The Bureau of Customs announced today preliminary figures for imports of
commodities id.thin quota limitations provided for under trade agreements, from
the beginning of the quota periods to November 29, 19U1, inclusive, as follows:
Commodity
Cattle less than 200
pounds each
Cattle, 700 pounds or
more each (other than
dairy cows)
:
Established Quota
î Period & Country : Quantity
Calendar year
Quarter year from
Oct. 1, 19U1
Canada
Other countries
îünit of :Imports as of
îQuantity:Nov. 29, 191*1
100,000
Head
(Tariff rate
quota filled)
91,720
6,212
Head
39,681;
(Tariff rate
quota filled)
it
Whole milk, fresh or sour
Calendar year
3,000,000
Gallon
5,81*0
Cream, fresh or sour
Calendar year
1 ,900,000
Gallon
1,21*5
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cush and rosefish
Calendar year
19 ,000,000
Pound
9,221,61*9
White or Irish potatoes
Certified seed
12 months from
Sept. 19, 19l£
90,000,000
Pound
1*,012,995
12 months from
Sept. 15, 19^1
60,000,000
Pound
992,610
Other
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Red Cedar shingles
Calendar year
2,1*88,359
Pound
(unstemmed
equivalent)19,061,863
Square
(Duty-free
quota filled)
M i3
Wfc P
*
T R E A S U R Y DEP ARTMENT
Washington
for
,
De c e m b e r 10,
immediate
Wednesday,
19^1-
The B u r e a u of Customs
ports
Press Service
No. 2g-g7
release
a n n o unced today p r e l i m i n a r y figures
for im
of c ommodities w i t h i n quota limitations p r o v i d e d for under trade
agreements,
from the b e g i n n i n g of the q u o t a p e riods
I9 L 1 , inclusive,
to Nov e m b e r 29,
as follows:
Commodity
:
Established Quo ta
: Period & Country : Quantity
:Unit of : Imports as of
:Quantity : Nov. 29. 1941
Cattle less than 200
pounds each
Calendar year
Cattle, 700 pounds or
more each (other than
dairy cows)
Quarter year from
Oct. 1, 1941
Canada
Other countries
Whole milk, fresh or sour
Calendar year
3,000,000
Gallon
5,840
Cream, fresh or sour
Calendar year
1,500,000
Gallon
1,245
Fish, fresh or frozen
filleted, etc., cod,
haddock, hake, pollock,
cush and rosefish
Calendar year
15,000,000
Pound
9,221,649
White or Irish potatoes
Certified seed
12 months from
Sept, 15, 1941
90,000,000
Pound
4,012,995
12 months from
Sept, 15, 1941
60,000,000
Pound
992,610
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
Pound
(Unstemmed
22,000,000 equivalent)
Red Cedar shingles
Calendar year
Other
100,000
Head
(Tariff rate
quota filled)
51,720
5,212
Head
ti
35,684
(Tariff rate
quota filled)
3,488,359
Square
19,061,863
(Duty-free
quota filled)
■2~
Commodity
Silver or "black foxes,
fur-s, and articles:
Foxes valued under
$250 ea. and whole
furs and skins
;
Established Cjfciota
:Unit of : Imports as of
: Period & Country : Quantity ;Quantity: Nov. 29, 1941
12 months from
December 1, 1940
Canada
70,000
Number
Other than Canada 30,000
Tails
Paws, heads, or other
separated parts
Piece plates
Articles, other than
piece plates
(kude petroleum, topped
crude petroleum, and
fuel oil
12 months from
December 1, 1S40
Piece
(import quota
filled)
!t
500
Pounds
(import quota
filled)
It
550
Pounds
364
If
500
Units
51
Calendar year
Venezuela, 1 ,913,049,600
Netherlands 578,806,200
Colombia,
Other Countries
Molasses and sugar
sirups containing
soluble notisuga,r
solids equal to
more than 6'jo of
total soluble solids
5,000
"
(import quota
filled)
(import quota
fiiled)
Calendar year
-oOo-
Ga,lIon
it
86,956,800
it
138,587,400
it
1,500,000
Gallon
1,747,351,883
(Tariff rate
quota filled)
(Tariff rate
quota filled)
(Tariff rate
quota, filled)
(Tariff rate
quota filled)
Pegcnbw.
The President It o »
Issued an Executive Order
freezing Thai assets in the United States in the same manner in
which assets of various foreign countries were frozen on June
and July 26, 1941*
14.
This measure, in effect, brings all financial
and trade transactions in which Thai interests are involved under
the control of the Government and imposes criminal penalties for
violation of the Order*
\
M
ß
TREASURY DEPARTMENT
W ashin gton
FOR IMMEDIATE RELEASE,
Wednesday, December 1 0 ,
19*11.
The P r e s i d e n t l a s t
night
f r e e z i n g T ha i a s s e t s
in which a s s e t s
Service
26-S6
i s s u e d an E x e c u t i v e Order
in t h e U n i t e d S t a t e s
in t h e same manner
of v a r i o u s f o r e i g n c o u n t r i e s were f r o z e n on
Ju ne 1*1 and J u l y 26 ,
all
Press
No.
19*11.
T h i s m ea su re ,
f i n a n c i a l and t r a d e t r a n s a c t i o n s
in e f f e c t ,
in which Thai
brings
in terests
a r e i n v o l v e d under t h e c o n t r o l o f t h e G-overnment and imposes
crim inal p e n a ltie s fo r v io la tio n
-oOo-
of the Order,
So. 98
December 10» 1941
FOR XMDIifSt BSLS4SS
WASHIHGiOH, D. C.
— la a move to place the Defease Savings
Program on an itensified and wartime basis* Secretary Morgenth&u to»
day (December 10) issued an emergency call to a ll state and territorial
leaders of the Defense Savings Staff to meet in Chicago on Tuesday,
December 16, at 10 a .a .
The Secretary of the Treasury notified a ll Defense Savings
State Administrators and State Chairman that he will be present to
discuss "plans for more intensive promotion* for the nationwide sale
of United States Defense Bonds and Stamps "in view of the c ritic a l
emergency which now confronts the country.*
The Secretary described
the meeting as "urgent."
The conference will be held in the Chicago Federal Reserve
Bank Building.
-oOo-
I
/
December 10, 1941
FOR IMMEDIATE RELEASE
WASHINGTON, D. C. — In a move to place the Defense Savings
Program on an itensified and wartime basis, Secretary Morgenthau to
day (^esenbeiTSfr) issued an emergency call to a ll state andmWJPFi buJlal~
leaders of the Defense Savings Staff to meet in Chicago on Tuesday,
December 16, at 10 a.a*
The Secretary of the Treasury notified a ll Defense Savings
State Administrators and State Chairman that he will be present to
discuss "plans for more intensive promotion11 for the nationwide sale
of United States Defense Bonds and Stamps nin view of the c ritic a l
emergency which now confronts the country."
The Secretary described
the meeting as "urgent•"
The conference will be held in the Chicago Federal Reserve
Bank Building.
-oOo*-»
f
h
i
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
December 10, 19^-1
WASHINGTON, ,D. C. —
In a move to place the Defense Savings
Program on an intensified and wartime basis, Secretary Morgenthau to-
day issued an emergency call to all state leaders of the Defense
Savings Staff to meet in Chicago on Tuesday, December l6,. at 10 a.m.
The Secretary of the Treasury notified all Defense Savings
State Administrators and State Chairmen that he will be present to
discuss ’’plans for more intensive promotion” for the nationwide sale
of United States Defense Bonds and Stamps ”in view of the critical
emergency which now confronts the country.”
The Secretary described
the meeting as ’’urgent.”
The conference will be held in the Chicago Federal Reserve
Bank Building.
-oOo—
2S-89
2- r ~ ^ o
PRESS RSLSASE
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
.Bureau
consumption under the import quotas established in the President’ s Proclamation
of May 28, 194-1, for the twelve months commencing May 29, 194-1, as follows:
Wheat flour, semolina,
crushed or cracked wheat,
and similar wheat products
Wheat
Country of
Origin
:Imports May :
:
Established:29, 1941 to Established:
Quota
:Nov. 29» 1941:
Quota
:
(Pounds)
(Bushels)
(Bushels)
795,000
Canada
China
Hungary
—
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
France
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
100
Socialist Republics
100
irinm
-
800,000
795,000
—
—
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
—
Imports May 29,
1941 to Nov, 29,
1941
(Pounds)
Countryoi
Origin
553,328
6,136
-
7,365
[¡to
il
—
$
—
?long
—
—
—
—
—
—
—
97
—
—
—
—
—
—
—
—
—
—
—
M Kingdom
Italia
«J
|
¡island
ili
Inlands
(¡itila
ill
«
w
|ii»
«
fiaj
;'ImiandDa
:É
piarla
myIsland
mia
-
—
-
—
:alatala
nil
inofSoy
795,000
4,000,000
566,926
!Socialist
It
(Prepared —Appeals and Protests (Quota Unit)
Bureau of Customs)
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE.
I Thursday. December 11. 1941,
I
Press Service
No, 28-90
The Bureau of Customs announced today preliminary figures showing the quanti
ties of wheat and wheat flour entered, or withdrawn from warehouse, for consumption
Launder the import quotas established in the President's Proclamation of May 28, 1941,
If for the twelve months commencing May 29, 1941, as follows;
Wheat
Country of
Origin
.Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia
Germany
'Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guat emala
Brazil
Union of Soviet
Socialist Republics
Belgium
; Imports May
Established; 29, 1941 to
Quota
;Nov. 29. 1941
(Bushels)
(Bushels)
795,000
100
100
100
—
—
100
2,000
100
1,000
100
—
1,000
100
100
795,000
-
-
-
»
—
—
100
100
—
800,000
795,000
-oOo-
Wheat.flour, semolina,
crushed or cracked wheat,
and similar wheat products
•
Imports May 29,
Established ;
1941 to Nov, 29,
1941
Quota
:
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
—
553,328
6,136
7,365
-
-
«3
-
-
.
97
-
—
—
—
4,000,000
566,926
¿ %
- f )
PRESS RELEASES
The Bureau of Customs announced today preliminary figures for imports
of commodities within the quota limitations provided for under the Philippine
Independence Act, as amended by the act of August 7 , 1939, from the beginning
of the quota periods to November 29, 191*1, inclusive, as follows:
Products of
Philippine Islands
s
Established Quota
s Period
s Quantity
Coconut oil
Calendar year
Refined sugars
Calendar year
Sugars other than refined
Calendar year
Cordage
Period - May 1
to Dec. 31, 191*1
1*25,600,000
sUnit of sImports as of
{Quantity;Nov. 29, 19lq
Pound
368,011,595
112,000,000) Pound
)i/
1,792,000,000)“ Pound
106,585,365
1,538,592,678
h , 000,000
Pound
3,35U,26l
Gross
738,376
Buttons of pearl or shell
Calendar year
807,500
Cigars
Calendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
1*,275,000
Number
Pound
166,863,500
3,892,51*7
1/ The duty-free quota on Philippine sugars applies to 850,000 long tons, of which
not more than 50,000 long tons may be refined sugars.
(Prepared - Appeals and Protests (Quota Unit)
Bureau of Customs)
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday. December 11. 1941.
Press Service
No. 28-91
The Bureau of Customs announced today preliminary figures for imports of
commodities within the quota limitations provided for under the Philippine
Independence Act, as amended hy the act of August 7, 1939, from the "beginning of
the quota periods to November 29* 1941, inclusive, as follows:
Products of
Philippine Islands
:
:
Established Quota
:
Quantity
Period
Coconut oil
Calendar year
Refined sugars
Calendar year
Sugars other than refined
Calendar year
Cordage
Period ~ May 1
to Dec. 31, 1941
425,600,000
Pound
368,011,595
112,000,000)
>i/
1,792,000,000)
Pound
106,585,365
Pound
1,538,592,678
4,000,000
Pound
3,354,261
Gross
738,376
Buttons of pearl or shell
Calendar year
807,500
Cigars
Qalendar year
190,000,000
Scrap tobacco and stemmed
and unstemmed filler
tobacco
Calendar year
4,275,000
if
rUnit of :Imports as of
:Quantity: Nov. 29. 1941
Number
Pound
166,863,500
3,892,547
The duty-»free quota on Philippine sugars applies to 850,000 long tons, of which
not more than 50,000 long tons may be refined sugars.
oOo-
INSOLVENT NATIONAL BANKS LIQUIDATED AND FINALLY CLOSED
________ DURING THE MONTH OF NOVEMBER, !Qy(l________
Name and Location of Bank
Date of
Failure
Total
D isbur sement s
to Creditors
Including
Offsets Allowed
American-First Nat*l Bank
Mount Carmel, Illinois
5-31-34
#
Fort Fairfield Nat*l Bank
Fort Fairfield, Maine
Per Cent
Dividends
Declared
to All
Claimants
Capital
Stock at
Date of
Failure
Cash, Assets,
Uncollected Stock
Assessments, etc.
Returned to
Shareholders
1,337,990
57.9256
I-8-34.
1,520,641
64.5356
200,000
000
Boston-Continental NB
Boston, Massachusetts
12-22-31
4,562,427
45.7256
1 ,000,000
000
Carlstadt National Bank
Carlstadt, New Jersey
4-10-34
1,097,963
92.2756
100,000
000
First National Bank
Boswell, Pennsylvania
2-9-32
459,206
30,000
000
First National Bank
Indiana, Pennsylvania
5-2-34
3,944,784
80.17$
200,000
000
Tower City Nat1! Bank
Tower City, Pennsylvania
4-20-34
1,346,388
98.05
50,000
000
55.11756
$
100,000
$
000
0
TREASURY DEPARTMENT
Comptroller of the Currency
Washington
Press Service
RELEASE, MORNING NEWSPAPERS
2^ - 7 ^
-a
u
'¿‘x~ t £ ^ ^ i v
nl otl
During the month of November, 1941» the liquidation of seven
Insolvent National Banks was completed and the affairs of such receiv
erships finally closed.
Total disbursements, including offsets allowed, to depositors
and other creditors of these seven receiverships, amounted to
$14,269,399, while dividends paid to unsecured creditors amounted to
an average of 66.02 percent of their claims.
Total costs of liqui
dation of these receiverships averaged 8.27 percent of total collec
tions from all sources including offsets allowed.
Dividend distributions to all creditors of all active receiv
erships during the month of November, amounted to $1,628,034*
Data as
to results of liquidation of the receiverships finally closed during
the month are as follows:
recei
T R E A S U R Y DEPARTMENT
C o m p t roller of the Currency
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
F r i d a y , De c e m b e r 12, 19^-1._______
12/ll/4l
D u r i n g the m o n t h of November,
Press Service
No. 2g~92
19^1,
the liqu i d a t i o n of seven
Insolvent Na t i o n a l Banks w a s ’ c o m p l e t e d and the affairs of such
r e c e i v e r s h i p s f i n a l l y closed.
Total disbursements,
and other creditors
including offsets allowed,
of these
seven receiverships,
to depositors
am o u n t e d to
l l U , 269 , 399 , w h ile dividends p a i d to u n s e c u r e d creditors
to an average of 66,02 percent
of their claims.
l i q u i d a t i o n of these r e c e i v e r s h i p s
collections
from all
sources
D i v i d e n d di s t r i b u t i o n s
averaged
Total costs
of
6 ,27 percent of total
inc l u d i n g offsets allowed.
to all creditors
r e c e i v e r s h i p s during the m o n t h of November,
D ata as to results
am o u n t e d
of all active
amo u n t e d to $1,622>,03^.
of l i q u i d a t i o n of the r e c e i v e r s h i p s finally
closed d u r i n g the m o n t h are as follows:
-
2
-
INSOLVENT NATIONAL BANKS LIQUIDATED AND FINALLY CLOSED
_________DURING THE MONTH OE NOVEMBER, ig4l___________
Name and Location of Bank
Date of
Failure
Total
Dishursements
to Creditors
Including
Offsets Allowed
American-First Nat’l Bank
Mount Carmel, Illinois
5 - 3 1 - 3 *+
$
Fort Fairfield Nat'l Bank
Fort Fairfield, Maine
Per Cent
Dividends
Declared
to All
Claimants
Capital
Stock at
Date of
Failure
Cash, Assets,
Uncollected Stock
Assessments, etc.
Returned to
Shareholders
100,000
$
1,337,990
57- 92 ^
I- 8 - 3 Ì+
1,520,641
64.53 $
200,000
000
Boston-Continental NB
Boston, Massachusetts
I2 - 22 -3 I
4,562,427
45.72$
1,000,000
000
Carlstadt National Bank
Carlstadt, New Jersey
4-10-34
1 .0 9 7 ,9 6 3
9 2 .27 $
100,000
000
First National Bank
Boswell, Pennsylvania
2-9-32
4 5 9 ,2 0 6
30,000
000
First National Bank
Indiana, Pennsylvania
5-2-34
3,9UU,78lt
80.17$
200,000
000
Tower City NatTl Bank
Tower City, Pennsylvania
4-20-34
1,346,388
98.05$
50 ,0 0 0
000
55.117$
- 0O 0-
$
000
bills, whether on original issue or on subsequent purchase, and the amount actually
i ■i
■
received either upon sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss*
Treasury Départaient Circular Ho* 418, as amended, and this notice, pre- f
scribe the terns of the Treasury bills and govern the conditions of their issue*
Copies of the circular aay be obtained from any Federal Reserve Bank or Branch*
tl
|||
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
■ ' ’' S i
Secretary of the Treasury of the amount and price range of accepted bids» (Those) sub
mitting tenders will be advised of the acceptance or rejection thereof»
The Secre
tary of the Treasury expressly reserves the right to accept or reject any or all
tenders, in whole or in part, and his action in any such respect shall be final»
Payment of accepted tenders at the prices offered must be made or completed at the
Federal Reserve Bank in cash or other immediately available funds on December 17,
1941, provided, however, any qualified depositary will be permitted to make payment
by credit for Treasury bills allotted to it for itself and its customers up to any
amount for which it shall be qualified in excess of existing deposits when so noti
fied by the Federal Reserve Bank of its district»
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The bills shall be subject to estate, inheritance, gift, or other excise taxes,
whether Federal or State, but shall be exempt from all taxation now or hereafter
imposed on the principal or interest thereof by any State, or any of the posses
sions of the United States, or by any local taxing authority.
For purposes of
taxation the amount of discount at which Treasury bills are originally sold by the
United States shall be considered to be interest.
Under Sections 42 and 117 (e)(1)
of the Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941,
the amount of discount at which bills issued hereunder are sold shall not be con
sidered to accrue until such bills shall be sold, redeemed or otherwise disposed of, j;|
and such bills are excluded from consideration as capital assets.
Accordingly, the
*
|B
owner of Treasury bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the price paid for such 1
ym m % x
TREASURY DEPARTMENT
Washington
EOR RELEASE, MORNING NEWSPAPER,
Fridays December 12, 1941____
The Secretary of the Treasury, hy this public notice, invites tenders
for % 150,000,000
or thereabouts, of
9 1 - day Treasury bills, to be issued
on a discount basis under competitive bidding.
be dated
December
17. 19A1 ---» and will mature
The bills of this series will
M?—
when the face amount will be payable without interest.
--- 9
—
— *
They will be issued m
bearer form only, and in denominations of $1*000, $5,000, $10,000, $100,000,
$500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p, m., Eastern Standard time,
Ifonday, Pee p e r
Tenders will not he received at the Treasury Department, Washington.
15, 1 9 U _,_
Each tender
must he for an even multiple of $1,000, and the price offered must he expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not he used.
Fractions
It is urged that tenders he made on the printed forms and for
warded in the special envelopes which will he supplied hy Federal Reserve Banks
or Branches on application therefor.
Tenders will he received without deposit from incorporated hanks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must he accompanied hy payment of 10 percent of the
face amount of Treasury hills applied for, unless the tenders are accompanied hy
an express guaranty of payment hy an incorporated hank or trust company.
Immediately after the closing hour, tenders will he opened e.t the Federa
TREASURY D E P A R T M E N T
Wash i n g t o n
FOR RELEASE, M O R N I N G NEWSPAPERS,
Friday, December 12, 19*11._______
The S e c r e t a r y of the Treasury, b;y this public notice, in
vites tenders for $ 15 0 , 000,000, or thereabouts, of 91-day Tr e a s u r y
bills, to be issued on a discount basis under competitive bidding.
The bills of this series will be dated December 17,. 19**-1, and will
mature M a r c h IS, 19*+2, whe n the face amount will b e payable w i t h
out interest.
T hey will be issued in b e arer form only, and in
d e nominati ons of $1 , 000, $ 5 ,000, $ 10 ,000, $ 100 , 000, $ 500 ,000,and
$ 1 ,000,000 (maturity value).
Tenders will be r e c e i v e d at Federal Reserve Banks and
Branches uo to the c l o sing hour, two o'clock p. m., Eastern S t a n
dard t i m e , "Monday, December 15, 19*11,
Tenders g i l l not be
r e c eived at the Tr e a s u r y Department, Washington.
Eac h tender must
be for an even m u l tiple of $ 1 ,000, and the price offered must be
expressed on the basis of 100 , w i t h not more than three decimals,
e / g . , 99-925.
Fractions may not be used.
It is u r g e d that
tenders^be made on the m i n t e d forms and forwarded in the special
envelopes w h i c h will be supplied by Federal Reserve Banks or
B r a nches on a p p l i c a t i o n therefor.
Te n d e r s will be r e c e i v e d without deposit from i ncorporated
banks and trust companies and from r e s p onsible and -r e c o g n i z e d
dealers in investment securities..
Tenders from others must be
a c c o m panied b y payment of 10 percent of the face amount of T r e asury
bills ap p l i e d for, unless the tenders are a c c o m p a n i e d by an express
guaranty of payment by an i n c o r p o r a t e d b a n k or trust company.
I m m e d i a t e l y after the c l o s i n g hour, tenders will be opened at
the Federal R e s e r v e Banks and Branches, following w h i c h public
announcement will be mane b y the Secretary of the Tre a s u r y of the
amount and p r ice range of ac c e p t e d b i d s , T h o s e
submitting tenders
will be a d v i s e d of the a c c e ptance or r e j ection thereof.
The
Secretary of the Treas u r y expressly reserves the right to accept
or reject any or all tenders, in w h ole or in part, and his action
in any such respect shall be final.
Payment of accepted tenders
at the prices of f e r e d must be made or completed at the Federal
R e s erve B a n k in cash or other imme d i a t e l y available funds on
December 1 7 , l j k - 1 , provided, however, any q u a l ified d e p o s i t a r y
will be p e r m i t t e d to make payment by credit for Treasury bills
allotted" to it for itself a nd its customers up to any amount for
w h i c h it shall be q u a l i f i e d in excess of existing deposits w h e n
so notified by the Federal R e s e r v e B a n k of its district.
The income d e r i v e d from T r e a s u r y bills, w h e t h e r interest or
gain from the sale or other d i s p o s i t i o n of the bills, shall not
have any exemption, as such, and loss from the sale or other
d isposition of T r e a s u r y b i lls shall not have any special treatment,
as such, u n der Federal tax Acts n o w or h e r e after enacted.
The
bills shall be subject to estate, inheritance, gift, or other
excise taxes, w h e t h e r Federal or State, but shall be exempt from
2g-93
-re
al 1 taxation n ow or h e r e a f t e r imposed on the principal or interest
thereof by any State, or any of the p o s s essions of the United
States, or by any local taxing authority.
For purposes of t a x a
tion the amount of discount at w h i c h Tr e a s u r y bills are originally
sold by the U n i t e d States shall be c o n s idered to be interest.
Under Sections k 2 and 117 (a) (l) of the Internal R e venue Code, as
amended by S e c tion 115 of the R e v e n u e Act of 19^1, the amount of
discount at w h i c h bills issued h e r e u n d e r are sold shall not be
considered to accrue until such bills shall be sold, r e d e e m e d or
otherwise d i s p o s e d of, and such bills are excluded from c o n s i d e r a
tion as capital assets.
Accordingly, the owner of T r e a s u r y bills
(other than life insurance c o m p a n i e s ) issued h e r eunder need
include in his income t ax r e turn only the d i f f erence b e t w e e n the
price paid for such bills, wh e t h e r on original issue or on s u b s e
quent purchase, and the amount actually r e c eived either u p o n sale
or r e d e m p t i o n at m a t urity d u r i n g the taxable year for w h i c h the
return is made, as o r d inary gain or loss.
T r e a s u r y Department Circular No. ^1^, as amended, and this
notice, pre s c r i b e the terms of the Treas u r y bills and g o v e r n the
conditions of their issue.
Copies of the circular may be o b t ained
from any Federal Reserve B a n k or Branch.
- 0O 0-
T R E A S U R Y DEPARTMENT
Washington
FOR I M M E DIATE RELEASE,
Thursday, D e c e m b e r 11,
Press Service
No, 26-9^
19^1.
T r e a s u r y officials who left W a s h i n g t o n December 1 for a
series of m e e t i n g s w i t h bankers
called to explain operations
and other i n t e rested groups,
of the Foreign Funds Control,
been h e l d in San Francisco to deal w i t h n ew problems
have
arising
from the war.
The T r e a s u r y ann o u n c e d today that additional personnel
b e i n g sent to San Francisco to assist
M e e t i n g s w i t h b a n kers
Dallas,
is
the group.
s c h e duled this week and next for
N e w Orleans and Atlanta have bee n cancelled.
The tour,
Association,
made in c o o p e r a t i o n w i t h the A m e rican Bankers
included m e e tings
in Cleveland,
Chicago,
Denver and
San Francisco,
Control of f o r e i g n - o w n e d p r o p e r t y was v e s t e d in the
T r e a s u r y by an executive order w h i c h
continental Europe,
Janan,
and China,
"froze" the assets
of
in the U n i t e d States.
W i t h the o u t b r e a k of war b e t w e e n J a pan and the U n i t e d
States,
a dditional r e s t r ictions were or d e r e d to a p ply to p r o p e r t y
of Japanese nationals,
and T h a i l a n d was added to the list of
countries u n d e r the f r e ezing order.
-oOo-
-z.«
PRESS RELEASE
The Bureau of Customs announced today preliminary figures showing the
quantities of silver or black fox articles entered, or withdrawn from ware
house, for consumption on December 1, 19l*l> under the import quotas provided
for in the supplementary trade agreement with Canada, signed on December 13,
19 l*0 , as follows:
j
______Commodity_____________:
Foxes valued under $250
each and whole furs
and skins (with or
without paws, tails
or heads)
Tails
Established Quota
Period
: Quantity
Month of
December, 19l*ls
From Canada
From other
countries
12 months from
December 1, 19l*l
1 7 ,500)
)i/
7,Soo)
5,000
:Unit o f :Imports on
{Quantity sDec. 1, 191*1
Fox or
skin
Fox or
skin
Tail
9,161
(Import:quota
filled)
(import quota
filled)
Paws, heads, or other
separated parts
it
500
Pound
251*
Piece plates
n
550
Pound
None
Articles, other than
piece plates
it
500
Unit
13
1/ Of the annual quota of 100,000 for these articles which may be entered, or
withdrawn from warehouse, for consumption in the twelve-month period commencing
December 1, 19l*l, not more than 70,000 may be imported from Canada, nor more
than 30,000 from all other foreign countries, but not to exceed 25 percent of
these quotas during any month.
(Prepared
Appels and Protests (Quota Unit)
Bureau of Customs)
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday. December 11, 1941.
Press Service
No. 28-95
.
The Bureau of Customs announced today preliminary figures showing the
quantities of silver or "black fox articles entered, or withdrawn from warehouse,
for consumption on December 1, 1941, under the import quotas provided for in the
supplementary trade agreement with Canada, signed on December 13, 1940, as
follows:
Commodity
Foxes valued under $250
each and whole furs
and skins (with or
without p aws, tails
or heads)
Tails
Paws, heads, or other
separate parts
:
:
Established Quota
:Unit of : Imports on
Period
: Quant ity : Quantity:: Dec. 1. 1941
Month of
December, 1941:
From Canada
From other
countries
12 months from
December 1, 1941
17,500)
)i/
7,500)
Fox or
skin
Fox or
skin
5,000
Tail
9,161
(Import quota
filled)
(import quota
filled)
h
500
Pound
254
Piece plates
It
550
Pound
None
Articles, other than
piece plates
It
500
Unit
1J
13
Of the annual quota of 100,000 for these articles which may be entered, or
withdrawn from warehouse, for consumption in the twelve-month period commencing
December 1, 1941, not more than 70,000 may be imported from Canada, nor more
than 30,000 from all other foreign countries, but not to exceed 25 percent of
these quotas during any month.
-oOo-
T R E A S U R Y DEPARTMENT
Washington
FOR IMM E D I A T E RELEASE,
Thursday, D e c e m b e r 11,
19^1»
Citizens of Hawaii
Defense Bonds
Press Service
No. 2S-96
stepped up tenfold their purchases of
on M o n d a y and Tuesday,
on Pearl Harbor and H i ckam Field.
fo l l o w i n g Sunday's
attack
Supplies of bonds at the
banks of H o n o l u l u and other I s l a n d cities are vir t u a l l y exhausted.
S e c retary M o r g e n t h a u r e c e i v e d this i nformation today by
telegram from Fred E. Kanne, T e r r i t o r i a l Ad m i n i s t r a t o r of the
Defense Savings Staff, who a s k e d authorization,
in view of^the
u n c e r t a i n t y of t r a n s p o r t a t i o n from the m a i n l a n d , " for H a w aiian
banks to issue special receipts for n o n - d e l i v e r e d b o n d purchases,
Sec r e t a r y M o r g e n t h a u t e l e g r a p h e d a u t h o r i z a t i o n for the use
of receipts, and said:
"Your te l e g r a m is another t h r i l l i n g proof of Hawaii's
p a t r i o t i s m and devotion.
You in the front lines are setting an
example to the whole country, and our hats are off to you.
Mr. K a n n e ' s m e s s a g e was as follows:
V
"Banks sales defense bonds Monciay, T u e sday appro x i m a t e l y
ten times normal rate.
Supplies vir t u a l l y exhausted.
View
u n c e r t a i n t y m a i n l a n d t r a n s p o r t a t i o n systems and arrival ¿ate
next shipments and u n d e s i r a b i l i t y r e j e c t i n g p rospective p u r c hasers
banks ask wh e t h e r you can authorize them issue special receipt
form for b o n d purchase, these receipts to be exc h a n g e d for bonds
whe n bonds themselves arrive,"
- 0O 0-
*3#lgi»!-'Ssas
1
cobs o f
iuKiWII
mm&L mmkmm
*
n
• STitle 31 - Money and Finance* treasury
- Chapter 1 - Monetary Offices, Department of the treasury
Part 131 ~ General licenses under Executive Order
Mo. 8389, April 10, 1940, as amended, and
regulations issued pursuant thereto*
r-,Section 131,2
TEElSOEf
a
W&timmt "
O ffice o f the S ecretary
December 11, 1941.
■
GMHUL &HUH8S » 0 * 2 , AS AJKflfS&D,
mi>m mmn'sm omm m*
S3S9, a fh il
1 0 , 1 9 4 0 , AS AMISDIB, AMD JLBOUlAflCMS
ISSOSD HJRSOAH? TREROTO,
QMS IS m
WU-Tim TO
am,
Etc*»
General License Mo, 2 Is hereby asended in the following respoetsi
(a) Paragraph (2) thereof is deleted!
as
(b) The following sentence i s substituted for the
sentence deleted by paragraph (a) of this amendmoot l
*(2) Any banking institution within 'the'
Suited States which during any quarterly period
enters any single lie» in excess o f #50 to any
account under the authority of this general
license shall file with the appropriate Federal
Reserve Bank at the mid of such quarterly period
a report showing the a m of such account end the
nature and amount of each l U m in excess of #50
entered to roau account under the authority of
this general license during such quarterly period.*
1 « H* F o ley, J r * ,
Acting S ecretary of the Treasury*
1
Wm
MM
\
•TSrt.S S T i Sec* 5(b5, 4S 0tat* 4lT*aad '96S* Sec. 2, 48 atat. If 54 Stat.
179} lx . Order 8389, April 10, 1940, m amended by Ex* Order «785, June
IP#
¡5
■
U , 1941* end Ex* Order 8832, Ju ly 2b, 194lf Regulations, April 10, imO,
I w 14, 1941, and July 24, 1941* Ex. Order 8963, December 9,
as
1941.
a
iaperils thè asseta of sueh perso» withta thè Continental Bntted States
or ©tàerwise prejmdielally affects thè financial positios of sueh
perso» withln thè ©<mtlnental United States»
(3)
Any tank effecting any payoent* transfer or wiihdranal pur-
suaat to t h l s
generai liconse shall s a t i s f a
itsolf th&t sueh pajm«at#
transfer or withdrawal ts beiag nado p m m & m t to th# terne and condìttGas
of this generai Ile enee*
(4.)
Where any bloeked account in a tank t» debited in excess of
1500 por oalendar aonth purau&nt to this generai llcense, sueh bank
«ball file with thè appropriate Foderai Heserre Bank a report for sueh
caleadar sentii sotting forth th© detalls of thè trans&ctions in snob
account duriag thè oalend&r «onth*
E. H. EOLEY, JR.
ActinS Socretaiy of thè Treasury*
mm Qf m m & mmimom
title 31 - Money and Finance*
freasuiy
Chapter 1 *• Monetary Offices, Department of th# treasury
Part 131 « General licenses under Executive Order Mo» #|§f#
April 10, 1910, as attended, and regulations
Issued pursuant thereto«
Section 131#
1
■ '
. ....... ......-
mumm nrismnf
•■•■ * /•■
Office o f the Secretary
1
• > :c■ -
■
December 11, 1941.
.LtiSL«**/
< m m X L LICMSS 80, 7?
tarn « « r a w owns ho, #389, im $
10, 1940» is
tm m
m
PTOSUAHT
,
m
mssunaaB
mAflMG to
Mi«:#
(l)
A general líense Is hereby granted licensing any person
engaged, prior to December 7, 1941, in the production, marketing or
distribution of food .products within the continental United States
and who is & national of Japan to engage in all transactions ordinarily
incidental to the normal conduct of their business of producing, market
ing or distributing food within the continental United States, Provided,
however, that this general licence shall not authorise
(%)
(a)
any transaction which could not be effected without
a license i f such person were not a national of
any blocked country«
(b)
total payments, transfers or withdrawals from blocked
accounts of any such person during any one week
in excess of the average weekly payments from such
account during the six months* period immediately
preceding the date of this license, or
(c)
any transaction by or on behalf of nationals of
Japan who were not generally licensed nationals
under General License Io« 68 prior to December 7,
1941«
Any person engaging in business pursuant to this general
license shall not engage’ in any transaction pursuant to this general
license which, directly or indirectly, substantially diminishes or
♦ "part 1311 ~ 'Sec* sCbí, Tpl "stat*'T Sf «äitd 9¡0»$ Sec. ¥, S T S tI" if 54 lätat
179| Is* Order 8389, April 10, 1940, as amended by SSx, Order 8785, June
14, 1941, and Ex« Order 8832, July 26, 1941$ Seguíations, April 10, 1940
as «Mended June 14, 1941, and July té, 1941; 3x- 0rAer 8963 > December 9,
1941.
UCSM O f
riti* fi
M M ÌA .T K M B
« im m tf m é F#3m h u n m fr®a«»ry
CHapter t * denotary Offle#«* ©epartisenb of thè freasurf
Fart Iti * Os&sral lieense* under Dteeuiioe Qrdor io* B0S0*
IfrII 10* l'iif# AS essendeà* and regulatlsa*
issued pur«usat thereto*
Ssotlon 131.11A
tatuonr
Offiee of thè Besretary
Beeeafc&r il* 1041 #
"
« B M L UGWE0S 10« I H
BMW» T O f U I CMW IO* 8 S t f * ÀF0IL
10« 1040« AS AMBE»*, ¿10 W U n U fM S
lastra m n w f *hksyo# m u i i m to
mmumimé m itmim
ite**
{1} A generai 1leenae 1« hereby grantea aotkorising payuants «ut
of thè blooked aeeeuat of any natioaal of Japa» io th# oemtiaental laited
State* far thè H r i n g m é persomi expenses of tuoi n&tioaal and hi* Household!
previde* that thè total payaents under this generai lieonoe fre» all thè blooked
account* of any ono nation&l siali
(i)
mt
oxeesd #100 in any one oalendar «nabli*
Banks« eapioyers and other perso»« m k i a g any suoh peyasnte »Hall
•atisfy tbenseires* through affidavit* or ottftSfAts** that payjssnt* out of bleeked
aseounto for U t i n g expoase* far any one ustionai and .Hi# housoHold do
m % m m lod
#100 in aay one oalendar usanti*
{»)
Banks* eapleysrs and ebhor persone m k ln g m y suol paymemts siali
filo pronptly otti thè appropriato Federai Besenrt laak separato aonthly reperts
lm triplioate o» Fora filmili far eash natlonal with rospost to ubo» payns&ts
«oro rande durlag thè oaleadar aoath*
Itosi U of Fora « H H U & aooé not He ftllod
Aot,in&Seor*tary of thè Freasury.
a
''fari Ìiir* "ISsT.$ib}*r:W ' S t i t * ' I f f ^ .I# i#'"ttal, i| Il slab*"l?0$
%*• ®P4or 8S8S, Aprii IO* 1040« a# a n & M by De* Ordar ITU» dune 14* 1041*
§*« Ordor 80SS* duiy 00* 1041, m é De* Ordor 0001* Dooosfeor i, 10*1| tegolati«»*
Aprii 10* 1040* as emendod dune 14* 1041* m é duiy 00* m i «
Japanese national cannot withdraw from his accounts during any one week
for such enterprises sums in excess of his average weekly withdrawals
during the last six months.
Moreover, the license covers only Japanese
nationals who were previously licensed under General License No. 68.
This action is intended to permit the orderly movement of fresh vegetables
and other food in areas such as the Pacific coast in order to supply
the needs of our civilian population and military^forces.
\
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Press Service
Thursday, December 11« 19A1
i ? - 9 7
f
The Treasury Department today announced regulations governing
living expenses and wages for Japanese nationals in the United States
and regulations governing Japanese nationals engaged in the production,
marketing and distributing of food and agricultural products within the
United States,
Under General License No. 11-A any Japanese national in the con
tinental United States may receive up to $100 per month for living and
personal expenses for him and his family.
This license permits such
payments from either the national* s bank account or from his employer
in the form of wages.
Banks and employers making such payments are
required to make certain that the Japanese national is not drawing more
than $100 under the license.
Thus a Japanese national cannot draw $100
per month in the forim of wages and at the same time withdraw $100 per
month from his bank accounts.
Under General. License No. 77 Japanese nationals engaged in the
business of producing, marketing or distributing food or agricultural
products may, with minor exceptions, engage in all transactions incident
to the normal conduct of such business.
However, under the license a
I
T R E A S U R Y D E P A RTMENT
Washington
FOR I M M E D I A T E RELEASE,
Thursday, De c e m b e r 11,
19*11.
'
Press Service
No. 25-97
tU
£- / '
$ f
The T r e a s u r y Department today announced regulations g o v e r n
ing livi n g expenses and wages for Japanese nationals
States and r e g u l a t i o n s g o v e r n i n g J a p a n e s e nationals
the production,
in the United
engaged in
m a r k e t i n g and d i s t r i b u t i n g of food and a g r i
cultural products w i thin the U n i t e d States.
Under General License No. 1 1-A any Japanese national in the
continental U n i t e d States may receive up to $100 per m o n t h for
living and p e r s o n a l expenses for h i m and his family,
This
license p e r m i t s such payments from either the n a t i o n a l ’s ban k
account or from his employer in the form of wages.
Banks and
employers m a k i n g such pa y m e n t s are r e q u i r e d to make certain that
the J a p anese national is not d r awing more than $100 under the
license.
Thus, a J a p a n e s e national cannot draw .$100 per m o n t h
in the form of wages and at the same time w i t h d r a w $100 per
m o n t h from.his b a n k accounts.
Under General L i c e n s e No. 77 J a p anese nationals engaged in
the business of producing, m a r k e t i n g or d i s t r i b u t i n g food or
agricultural products may, w i t h minor exceptions, engage in all
transactions incident to the normal conduct of such business.
However, u n der the license a J a p anese national cannot w i t h d r a w
from his accounts d u r i n g any one w e e k for such enterprises sums
in excess of his average w e e k l y w i t h d r a w a l s during the last six
months.
Moreover, the license covers only Japanese nationals
who were p r e v i o u s l y l i c e n s e d u n der General License No. 65.
This action is i n t e n d e d to permit the orderly movement of fresh
vegetables and other food in areas such as the Pacific coast in
order to supply the needs of our civilian p o p u l a t i o n and m i l i t a r y
forces.
-oOo-
T R E A S U R Y D E P A RTMENT
Office of the Secretary
• December 11, 19^1.
GE N E R A L L I C E N S E NO. 77
U N D E R E X E C U T I V E O R D E R NO. £ 389 , APRIL
10, 19^0, AS AMENDED, AND REGU L A T I O N S
I S S U E D P U R S U A N T THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN FOREIGN EXCHANGE, ETC.*
(1)
person
A general li c e n s e is h e r e b y gr a n t e d l i c e n s i n g any
engaged,
p r i o r to D e c ember 7 ,
19^1,
in the production*
m a r k e t i n g or d i s t r i b u t i o n of f ood p r o ducts within the continental
U n i t e d States and who is a national
transacti ons
business
of Japan to engage in all
o r d i n a r i l y incidental to the normal conduct of their
of producing,
m a r k e t i n g or d i s t r i b u t i n g food with i n the
continental U n i t e d States,
P r o v i d e d , h o w e v e r , that this general
license shall not authorize
(a)
any t r a n s a c t i o n w h i c h could not be effected without
a license if such p e r s o n were not a national of. any
b l o c k e d country.
(b)
total payments, transfers or w ithdrawals from b l o c k e d
accounts of any such p e r s o n during any one w e e k in
excess of the average w e e k l y payments from such
account d u r i n g the six m o n t h s ' period i mmediately
p r e c e d i n g the date of this license, or
(c)
any t r a n s a c t i o n by or on b e half of nationals of
J a p a n who were not g e n e r a l l y licensed nationals
u n d e r General L i c e n s e No. 6S prior to D e c ember 7;
l#l.
(2)
A n y p e r s o n engaging in busin e s s pursuant to this
general li c e n s e shall not engage
this general license which,
in any t ransaction pursuant to
d i r ectly or indirectly,
s u b s t a ntially
* Part 131; - Sec. 5(b), ^0 Stat, 415 and 966 ; Sec.,' 2, 4£ S t a t . l V
54 Stat. 179 J Ex. Order 2>3$9j April 10, 1940, as amended b y
Ex. Order £ 7 ^ 5 , June l4, 1941, and Ex. Order GG32,. July 26,
1941; Regulations, April 10, 1 9 4 0 , 'as amended June l4, 1941,
and July 26, 194l; Ex, Order G 963 , December 9 j 19^1*
2
diminishes
or imperils the assets
of such pers o n w i t h i n the
continental U n i t e d States or otherwise p r e j u d i c i a l l y affects the
financial p o s i t i o n of such p e r s o n w i t h i n the continental U n i t e d
States.
(3 )
A n y b a n k e f f ecting any payment,
pursuant
to this general license
payment,
transfer or w i t h d r a w a l
terms and conditions
( H- )
excess of
license,
transfer or w i t h d r a w a l
shall satisfy itself that
is b e i n g made pursuant
such
to the
of this general license.
W h e r e a ny b l o c k e d account
in a b a n k is de b i t e d in
$500 per calendar m o n t h pursuant to this general
such b a n k shall file w i t h the appropriate Federal
Reserve B a n k a report
for such calendar m o nth setting forth the
details of the transactions
in such account during the calendar
month.
E. H. FOLEY, JR.
A c t i n g Secretary of the Treasury.
T R E A S U R Y DEPARTMENT,
Office of the Secretary,
December 11, 1941.
G E N E R A L L I C E N S E NO. 2, AS AMENDED,
U N D E R EX E C U T I V E O R D E R NO. 8389 , APRIL
10, 1940 , AS AMENDED, AND R E G U LATIONS
ISSUED PU R S U A N T THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN FOREIGN EXCHANGE, ETC.*
General L i c e n s e No.
2 is h e reby a m ended in the fo l l o w i n g respects:
(a)
P a r a g r a p h (2) thereof
is deleted;
(b)
The f o l l o w i n g sentence is substituted for the
sentence d e l e t e d b y p a r a g r a p h (a) of this a m e n d
ment |
"(2)
Any b a n k i n g institution w i t h i n the
U n i t e d States w h i c h d u r i n g any quarterly p e r i o d
enters any single item in excess of $5^ to any
account under the a u t hority of this general
license shall file w i t h the appropriate Federal
Reserve B a n k at the end of such quarterly p e r i o d
a report showing the name of such account and the
nature and amount of each item in excess of $50
entered to such account under the authority of
this general license d u ring such quarterly p e r i o d . "
E, H. Foley, Jr.,
A c t i n g Secretary of the Treasury.
Part 131; - Sec. 5(b), 40 "Stat. 415 and 966 ; S e c . 2,' 46 Stat i;
54 Stat. 179; Ex. Order S3^9, April 10 , 1940, as amended by
Ex. Order ¿7$5> June 14, 1941, and Ex. Order 6S 32 , July 26,
1 9 4 1 ; Regulations, April 10, 1940, as amended June l4, 1941,
and July 26, 1 9 4l; Ex. Order & 9 ^ 3 > December y > 1941.
2g-9g
'TREASURY DEPARTMENT,
•
O ffice of the S e c r e t a r y ,
|
De c e m b e r
1 1 , 19 I+I,
GENERAL L I C ENSE NO. 11-A.
U N D E R E X E C U T I V E O R D E R NO. 8389 / APRIL
10, 194-0, AS AMENDED, AND R E G U L A T I O N S
I S S U E D PU R S U A N T THERETO, R E L A T I N G TO
T R A N S A C T I O N S IN FOREIGN EXCHANGE, ETC «*
(1)
A general license is h e r e b y g r a n t e d a u t h o r i z i n g p a y
ments out of the b l o c k e d account
of any national
of Japan 'In' "the |
continental U n i t e d States for the l i v i n g and personal
such national
and his household;
provided
expenses
of
that the total p a y
ments under this general license from all the b l o c k e d accounts
pf any one national
sha^l not exceed
$100 in any one calendar
month.
(2 )
Banks,
employers à h d other persons m a king any such p a y
ments shall satisfy themselves,
that payments
t h r o u g h affidavits or otherwise,
out of bl o c k e d accounts
any one national
for living expenses
and his h o u s e h o l d do not exceed
for
$100 in any one
calendar month.
E. H. Foley, Jr.,
A c t i n g S e c r etary of the Treasury.
Hart 1 3 1 ; - Sec. p(b), 40 Stah. 415 and 966; Sec. 2, 4 g S t a t . l ;
5 Ll Stet* . ^ 1 3 ] Ex. Order 83$9, ^Aoril 10, 1940, as amended by
Ex. Order 8785 , June l4, 1 9 4 1 , Ex. O r der 8832 , July 26, 1941,
and Ex. Order 8963 , De c e m b e r 9> 194-1 J Regulations, April 10 ,
1940, as a m e nded June 14, 1 9 4 1 , an d July 26, 1941.
@FedFRASER