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JUN 14 1972
TREASURY DEPARTMENT
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Bo 1 hff» to w ait u n til the m l of the year to get a tax receip t fo r
the money ray empleyer has withheld from ay mges?
4 ** ft©# unless you change eag&cyaexft during th e y ear, then you get your
rece ip t with your la s t pay*
T~*vA
* Suppose I change Jobs several times during the year*
*£ Q w4 * i v A 1} That does not make any difference* Bach employer oust give you
a re c e ip t shoeing the amount o f tax he withheld*
&.M.
^
x have heard or read in the papers th a t acne classes of employees donft
have anything wliMwM from th e ir wages*
ITA}s/%That Is correct* There is no withholding from the pay of the personnel
of the armed services* M inisters of the gospel are also exempt from
withholding* So are a l l persons engaged in domestic and a g ric u ltu ral
service* However* a l l those people w ill be required to pay th e ir income
taxes out of th e ir current income* They do th is by f ilin g a retu rn
showing th e ir estim ated ta x and pay such tax quarterly*
An
c E riouj* time is almost gone* Before we close* is there anything you especially
want to emphasise^ Sir* Sullivan'?
'"*Nl lee* 1 wish to emphasise th a t nothing in the new law excuses anyone
from making h is o r her June 15th income ta x payment* That i s doe next
Tuesday, ind f in a lly I went to urge a l l employers to g et those
Withholding Exemption C ertlflcateB in to the hands of your employees
rig h t away. To a l l e&q&cyeee I want to say "Please f i l l out and sign
those C ertificates and retu rn to your employer immediately,*»
‘-iJ v /Y W , No. That q uarterly payment, ae
w ill be
credited against your 1943 tax lia b ility . You a t i l l owe the Government
one-fourth of your 1942 ta x . Assuming, of course, th a t your M 2 tax | | | |
is le ss than jjfer 1943, as w ill be the case fo r the g reat m ajority of
nf
a l l taxpayers.
ffj
when do I pay th a t?
| S i/t t^ y r
18
you may pay h alf of i t March 15th, 1944, and the other h alf a year la te r
in Marchjl945#
uu t Mvilpaae. ,
\jO 0 R.
I would lik e to ask what proof 2 haw th a t 2 have made these payments
on my income tax through the money held out of my wages.
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Shortly a fte r the close of the year, or w ith your la s t pay i f you stop^# ;
working before the end of the year, your employer w ill give you a receip t
showing the to ta l amount o f the tax deducted and withheld from your pay
t
during the year.
£ ** ? % g y £: * what do I do w ith th a t receipt?
S ^
I You take good care of i t ,
I t is your receip t fo r the taxes you haw
prepaid. (
£
0
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Suppose the amount withheld during the year amounts to more than the
tax I owe fo r the year?
Any ovexpayment of taxes w ill be refunded or credited to you*
§§$
If m P
6» What would happen i f sy rece ip t from ay employer gets lo s t or destroyed?
S^
you apply to the employer fo r a copy of the re c e ip t.
to 6
What would happen i f ay employer withheld the tax from my wages b u t did
uo * a K a i *
not tu rn I t ever to the Government?
SV ^
^ w f You are completely protected, the re ce ip t you get from your employer
is your proof of the fa c t th a t you have paid th a t much ta x .
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applies to everybody? Everybody must pay the June 15th
*’* * U~**T
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A r/* Yes, everybody who has been paying h is 1942 tax in quarterly
installm ents m ist make another payment on or before June 15th.
$
0
f .1011. i f we have to make these two qu arterly payments, and then have
p u> <a
*
*
20 percent taken out of our wages, what is a l l th is wforgivenessn
there was so much ta lk about?
/. **°L kt*? * M; fXm are forgiven a l l or a large p a rt of a debt which, under the old
law, you owed to your Government * I t i s true th a t you w ill keep rig h t
on paying income ta x . You get no holiday from th a t.
two d ifferen ces.
But there are
One difference is th a t you are paying your tax
a l i t t l e every pay day, as you earn your money, instead of having
to save i t up fo r three months to make q uarterly payments. The other
difference i s . . . . , . . , . .
^
‘
That you are paying i t against th is year*a income tax debt instead of
la s t year1s — ±sn*t th a t rig h t?
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That is exactly rig h t^ Mpftfielpsetw* For the m ajority of the taxpayers j
th a t is the people w ith leer or average incomes whose tax amounts to
$50 or less fo r e ith e r 1942 or 1943, the whole tax fo r the sm aller year
w ill be forgiven.
gP
How about the re s t of us w ith higher incomes? I figure th a t 75 percent
of my own personal 1942 tax w ill be forgiven. I s t i l l am a quarter
of i t .
Does the q u arterly payment I made la s t March clear th a t up?
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, >•JSo* Eagilcyers may e le c t to use the "Wage Bracket Tables’* which axe
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w itte n in the law. These tab les s e t d e fin ite amounts to be w ithheld
from each pay. For example* In the case of a married employe© w ith
tim e dependents* whose weekly m gs is asyidaere between f i f t y and
six ty dollars* the emplcyer i s perm itted to withhold a f l a t amount
of $2<£0 per week* instead of requiring him to figure the exact amcmb
fo r each individual employee. The law grants the employer th is
"short-cut*1 method In order to sim plify the job of computing the amount
to be withheld from each individual soq&cyse. The amount of ta x
withheld may be slig h tly d iffe re n t from an exact computation a t
20 percent* but th is does not h u rt th e esplcyee any.
I f a l i t t l e jsg&
than the actual 20 percent is withheld he mey have a sm all balance to
3c
pay when next March 15 th comes around. I f a t r i f l e more than the
exact 20 percent is withheld* the ei^loye© w in have a c re d it coming
3
to him.
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X was working la s t year* too* and my Income tax figured to about 160.
X paid a quarter of i t in March th is year* Wkai happens to th a t #15?
That ^ stands to your c re d it as a payment on your income ta x fo r
this
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Isn ft th a t so^Mr. Sullivan?
Tea* th a t is c o rre c t. The 815 you paid in March counts as a payment on
your current 1943 income tax*
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W'pdly <rm fi.* do X have to pay another 815 th is month ~ the t o
15th q u arterly
s
installm ent?
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tsb § * **; X es. Ifothing in the new law changes any person*e obligation to pay th e
t o e 15th in stallm en t.
also w ill be tre a te d as p a rt payment of your
1943 ta x .
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S tfi,* i v - f t
That1s a very important q u e s t i o n * Tou've got to haw th a t
inform ation, and h ere's how you get it*
a Withholding Exemption C ertificate*
‘
There is a special form called ®g
The C ollector o f In tern al Revenue
in your d is tr ic t w ill supply you w ith as many as you need* I t is up to
olMyc
you to give one to every on® of your employees, And i t is up to you-.
m
e
**<ibs68mmi as employees, to f i l l out those
C e rtific a te s, sign them and then return them promptly to your employer*
On th is Exemption C ertificate you t e l l him whether you are married or
single and how many dependents you have,
I t gives the employer the
inform ation he needs so th a t he can exempt the proper amount of your
pay from the 20 percent withholding*
What happens i f I d on't tu rn in th is C ertificate?
S**
U ntil you hand one in , the law requires your employer to withhold
20 percent on a JJ your pay * every d o llar of it*
In your case,
'd£355£b££Bas^ i t would mean he would withhold $15 *20 each week Instead
m
of 16,40*
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£*« • M :
Believe m e a l'll get that C ertificate in,
And get i t in e a rly , 4MAaa», because i t 's going to be a big job fo r
us employers to get a l l those exemptions and ra te s figured by the f i r s t
of July* I t is going to be esp ecially d if fic u lt fo r my company,
because, due to piece work bonuses, most of our employees earn odd
Up
amounts, lik e $63*82 or $78*90*' Mr* S ullivan, do I have to figure
the exact 20 percent of each of those amounts above withholding exemptions
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S ap * e£ j No, sir#
5 ^jI b^ 1My-j^hen a good p art o f your pay is exempt fra a the ^th h o ld in g ^£ o c.
Twelve dollar® fo r y o u rself| another twelve d o llars fo r your wife th a t makes $24* plus six d o llars fo r each of your thee© children,
'
makes $18 more, That’s a to ta l of $42 of your weekfy pay th a t’s
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exempt. The amount withheld i s 20 percent of the balance. You said
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your weekly pay is $76, didn’t you?
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$vinrt'Tb&n your employer w ill withhold 20 percent on the difference between !
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your to ta l pay of $7$ and your exemption of $42 *» which amounts to $34**
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Hcwr much then would be taken out of my weekly pay?
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$6,80, which means th a t you w ill receive ju s t under $70.instead of $76* I
/
« s s ^ * * * * and the $6,80 I didn’t g e t, is th a t my income tax?
Tos, th a t is your income ta x , and i t also includes your V ictory ta x ,
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^ ? May I ask a couple of questions here?
*
C ertainly- 1&T.Mihjijwu**
You see, I ’m an employer, the fellow who has the job of withholding th i*
tax* You mean I don’t have to make th a t 5 percent V ictory
withholding
any longer?
Not a f te r your la s t payroll th a t begins in dune. A ll payrolls beginning
on or a fte r J ily 1 are subject to the new law, and the V ictory rp£x i s
j
included in the 20 percent w ithheld,
fjrM P t-o ^ C
Tfell, here’s another question, % company has about 250 employees,
I don ’t ^ ^ p t o know Tfoich of the® are sin g le, or which m arried, or
how many children they have.
How can I figure th e ir exemptions and
the amount 1 must withhold?
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1 think the f i r s t thing to understand is th a t th is is not a new tax
or an additional ta x , but a new method of co llectin g the income tax*
The new law does not change the income tax r a te s .
The big change
comes in JjgH a person tima the income ta x . Under the old system, he
paid a year late*
That i s , on Kareh 15th he paid, or began paying,
a tax on the money he earned the previous year* Now, under th e new
pay-as-you-go method, he w ill be paying the income tax on h is 1943
income during 1943, b it by b it, pay-day by pay-day,
£ e . fAs I understand i t , when you say I w ill pay th a t tax b it by b it, you
I
mean th a t i t w ill be deducted from, my pay b i t by b i t .
S v u Jg ^? Arv
gfis
lour employer w ill deduct p a rt W&
mm
of your pay every payday. Be w ill turn th a t money ever to the co llec to r
Mm
of in te rn a l revenue w ith h is q uarterly retu rn , or i f your employer has X;
MBS
enough employees to make the aggregate deductions from a l l employees
That is exactly correct^
#X00 or more each month, lie w ill deposit th a t money monthly in a bank
which w ill tu rn i t over to the Treasury of the United S ta te s. In
ill
e ith e r event, th is money stands to your c re d it as prepayment of your
lllll
%
tax*—
mu
Thai* a a l l rig h t, but what1a worrying me is how much is my employer
going to hold back. The papers Imre been talk in g about 20 percent.
Poes th a t mean 1% going to have 20 percent taken out of my $% every jjf
week? How can I support a wife and three k id s ,,* ,,
*_>
I— s^_f-<iN
k ^ v i Ju st a moment
s
/m deduction is not 20 percent on a l l
your pay. I t is 20 percent on your pay, le ss your exemptions — and
you have a lo t of exemptions. Are your wife or any of your children
v
working?
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Columbia Thursday t e e 10, 1942Eound Table Discussion of the t o i s s Wage v^Ltbholding Tax
Treasury O fficial - Tr<
An EirtrO^sas^ JtosJj&bs Man - 3U*
An SraplccW - isnp*
Wce&n w ar W orker - W*W*Wf
Station Announcer «* Ann*
(w a H im u u iW f’AluiJg t t iiB guim 1* ! * m S ST*~~
new 3reiinMe b ill* popularly known as the n/&y^i&~jtcr&-$on
tax , has Jugt become law* I t goes in to e ffe c t July 1 s t, iu s t three
weeks from today* Betv*eon new and then nearly f if ty m illion Americans
w ill have to find out how th is new law a ffe c ts them — -wfmt they have
P i_A«-EC
to do to prepare fo r I t — what new duties i t pms upon thorn — new
I t b en efits them individually*
To help answer some of these questions we are bringing to you a round
table discussion of the new tax, between a high o ffic ia l of the
Gcvernaant, the Honorable John I* Sullivan, A ssistant Secretary of the
Treasury, and t: roe typical American taxpayers —
an employee of a business ertablishmentjj a woman war -worker,
Bieaufaetuiwir and employer*
A
Hew to s ta r t th is discussion ro llin g , I am going to ask Mr* Sullivan
* •■
Mggg n0ee»g> ’MAiliAawBf .and *-afoy«Jaiwab a r i w r t w ,
to t e l l us what is the outstanding difference between th is new
upay~&8~ycu~£oMtax and the (d d ^ n ca ae
^
TREASURY DEPARTMENT
W a s h in g to n
FOR RELEASE, MORNING NEWSPAPERS,
F rid a y , June 1 1 , 1943*
P re s s .S e rv ic e
No ..0 7 - o
(The fo llo w in g e x p la n a tio n o f th e new C u rre n t
Tax Paym ent A ct o f 1943 by A s s is ta n t S e c re ta ry o f th e
T re a su ry John L. S u lliv a n , in a d is c u s s io n i n M f e w ith
a man and woman em ployee and an em p lo y er, i s sch ed u le d
to he b ro a d o a s t^ j^ nPB#l» g€M m itgQ *lpy^eB nltfenM & »»^«mei**
1 0 : } qI d.. w. T E a ste r n War Time.. ThuxadAV ■JTunp 1 0 T
o v er th e Colum bia B ro a d c a stin g System and i s
r o r r e le a s e a t t h a t tim e.JJ
TREASURY DEPARTMENT
W ashington
FOR RELEASE MORNING NEWSPAPERS,
F riday, June 11, 1943*
P r e s s S e rv ic
No. 37r0
(The f o llo w in g e x p l a n a ti o n o f th e new C u rre n t Tax
Payment Act o f 1943 by A s s is t a n t S e c r e t a r y o f th e T re a s u ry
John L. S u l l i v a n , i n a d i s c u s s i o n w ith a man and woman
em ployee and an em p lo y er, i s s c h e d u le d t o be b r o a d c a s t
a t 10*30 p .m ., E a s t e r n War Time, T h u rsd a y , June 10, 1943,
o v e r th e C olum bia B r o a d c a s tin g System and i s f o r r e le a s e *
a t 't h a t t i m e . )
A nnouncer:
The new t a x b i l l , p o p u la r l y known a s th e ’’p a y - a s - y o u - g o ”
t a x , h as j u s t become law .
I t goes in t o e f f e c t J u ly 1 s t ,
j u s t th re e ^ w e e k s from to d a y . Between now and th e n n e a r l y
f i f ^ 7 m i l l i o n A m ericans w i l l h av e t o f in d o u t how t h i s
new law a f f e c t s them - - w h a t. th e y have t o do to p r e p a r e
fo r i t - - w hat new d u t i e s i t p la c e s upon them - - how
i t b e n e f i t s them i n d i v i d u a l l y .
To h e lp answ er some o f th e s e q u e s tio n s we a r e b r in g in g
t o you a round t a b l e d is c u s s io n o f th e new t a x , betw een
a h ig h o f f i c i a l o f t h e G overnm ent, th e H o n o rab le 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 o f 't h e T re a s u ry , and t h r e e
t y p i c a l A m erican ta x p a y e r s -v an em ployee o f a b u s in e s s
e s ta b l is h m e n t , a woman w ar w o rk e r, and an em p lo y er.
Now to s t a r t t h i s d i s c u s s i o n r o l l i n g , I am- g o in g to a sk
i^ r, S u lli v a n t o t e l l us w hat i s th e o u ts ta n d in g d i f f e r e n c e
b etw een t h i s new '’p a y - a s - y o u - g o ” t a x and th e o ld m ethod o f
income t a x c o l l e c t i o n ,
S u lliv a n ;
I t h i n k th e f i r s t t h i n g t o u n d e r s ta n d i s t h a t t h i s i s n o t
a new t a x o r an a d d i t i o n a l t a x , b u t a new m ethod o f
c o l l e c t i n g th e incom e t a x .
The new law does n o t change
t h e income t a x r a t e s .
The b ig change comes i n how a p e rs o n
p a y s th e incom e t a x .
Under th e o ld sy stem , he p a id a
year la te ,
ih a t i s , on March 1 5 th he p a i d , o r beg an p a y in g ,
a t a x on th e money he e a rn e d th e p r e v io u s y e a r . Now, u n d er
th e new p a y -a s -y o u -g o m eth o d , he w i l l be p a y in g th e income
t a x on h is 1943 incom e d u r in g 1943, b i t by b i t , p a y -d a y
by p a y -d a y .
Em ployee;
As I u n d e rs ta n d i t , when you sa y I w i l l pay t h a t t a x b i t
by b i t , you mea$ t h a t i t w i l l be d e d u c te d from my p ay
b it b y ,b it•
S u lliv a n s
That i s e x a c t l y c o r r e c t . Your em p lo y er w i l l d e d u c t p a r t
o f yo u r p ay e v e ry p ay d ay . He w i l l t u r n t h a t money o v er
t o th e c o l l e c t o r o f i n t e r n a l re v e n u e w ith h i s q u a r t e r l y r e t u r
o r i f y o u r em ployer h a s enough em ployees to make th e a g g r e
g a te d e d u c tio n s fro m a l l em ployees $100 o r more each m onth,
he w i l l d e p o s it t h a t money m o n th ly i n a bank w hich w i l l
t u r n i t o v er t o th e T re a s u ry o f th e U n ite d S t a t e s .
In
® iik e r e v e n t, t h i s money d ta n d s t o y o u r c r e d i t a s p r e —
payne.nt o f y o u r t a x .
Employee;
T h a t’ s a l l r i g h t , b u t w h a t’ s w o rry in g me i s how much i s my
em ployer g o in g t o h o ld b a c k . The p a p e r s hav e b een t a l k i n g
ab o u t 20 p e r c e n t. Does t h a t mean I ’m g o in g to have 20
p e r c e n t ta k e n o u t o f my $76 e v e ry week? How can I s u p p o rt
a wi f e and t h r e e k i d s , , , , , ,
S u lliv a n :
J u s t a moment - th e d e d u c tio n i s n o t 20 p e r c e n t on a l l
y o u r p a y . I t i s 20 p e r c e n t on y o u r p a y , l e s s y o u r
ex em p tio n s - - and you have a l o t o f e x e m p tio n s . Are your
wi f e o r an y o f y o u r c h i l d r e n w o rk in g ?
Employee:
No, s i r .
S u lliv a n ?
Then a good p a r t o f y o u r p a y i s .^exempt from th e w ith h o ld in g
ta x ,
Twelve d o l l a r s f o r y o u r s e l f , a n o th e r tw e lv e d o l l a r s
f o r your w ife - t h a t makes $24, p lu s s i x d o l l a r s f o r each
o f yo u r t h r e e c h i l d r e n , makes $18 m ore. T h a t’ s a t o t a l
o f $42 o f y o u r w eek ly p ay t h a t ' s exem pt. The amount w ith
h e ld i s 20 p e r c e n t o f th e b a la n c e . You s a id y o u r w eek ly
p ay i s $76, d i d n ’t you?
Employee:
Y es, s i r ,
S u lliv a n :
Then yo u r em p lo y er w i l l w ith h o ld 20 p e r c e n t on th e d i f f e r e n c e
b etw een y o u r t o t a l p ay o f $76 and y o u r e x em p tio n o f $42 w hich am ounts to $34.
Employee s
How much th e n w ould be ta k e n o u t o f my w e e k ly pay?
S u lliv a n :
$ 6 ,8 0 , w h ich means t h a t you w i l l r e c e iv e j u s t u n d er $70,
in s te a d o f $76,
Employee s
* * * * and th e $ 6 .8 0 I d i d n ’t g e t , i s t h a t my income ta x ?
- 3 -
|
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jl,.
S u lliv a n :
J e s , t h a t i s yo u r incom e t a x , and i t a ls o in c lu d e s your
V ic to r y t a x .
Em ployer:
May I a s k a c o u p le o f q u e s tio n s h e re ?
S u lliv a n :
C e rta in ly .
Em ployer:
You s e e , I ’m an em p lo y er, t h e f e llo w who h a s th e jo b o f
w ith h o l d in g ^ th is t a x . You mean I d o n 't have t o make t h a t
5 p e r c e n t V ic to r y t a x w ith h o ld in g an y lo n g e r?
S u lliv a n :
Not a f t e r your l a s t p a y r o l l t h a t b e g in s i n Ju n e . A ll p a y r o l l s
b e g in n in g on or a f t e r J u ly 1 a r e s u b je c t t o t h e new law ,
and th e V ic to r y t a x i s in c lu d e d i n th e 20 p e r c e n t w ith h e ld .
E m ployer•
W e ll, h e r e ’ s a n o th e r q u e s ti o n . My company h as ab o u t 250
em p lo y ees, I d o n ’t b e g in t o know w hich o f them a r e s i n g l e ,
o r w hich m a rr ie d , o r how many c h i l d r e n th e y h a v e . How
can I f i g u r e t h e i r ex em p tio n s and t h e amount I m ust w ith h o ld ?
S u lliv a n :
£|
I
Em ployee:
What h ap p en s i f I d o n ’t t u r n i n t h i s C e r t i f i c a t e ?
S u lliv a n :
U n til you hand one i n , t h e law r e q u i r e s y o u r em ployer to
w ith h o ld 20 p e r c e n t on a l l y o u r p ay - e v e ry d o l l a r o f i t .
In y o u r c a s e ,, i t w ould mean he w ould w ith h o ld $15-^20 each
week i n s t e a d o f $ 6 .4 0 .
Employee j
B e lie v e me, I ’ l l g e t t h a t C e r t i f i c a t e i n ,
Em ployer:
And g e t i t i n e a r l y , b e c a u se i t ’ s g o in g t o be a b ig jo b f o r
us em p lo y ers to g e t a l l th o s e e x em p tio n s and r a t e s f ig u r e d
by th e f i r s t o f J u ly . I t i s g o in g t o be e s p e c i a l l y d i f f i c u l t
f o r my eompany, b e c a u s e , due t o . p i e c e w ork b o n u s e s , m o st o f
o u r em ployees e a r n odd am ounts, l i k e $ 6 3 .8 2 o r $ 7 8 ,9 0 .
I
|
T h a t’ s a v e r y im p o r ta n t q u e s ti o n . You’ve g o t t o have
t h a t in f o r m a tio n , and h e r e ’ s how you g e t i t . . T here i s a
s p e c i a l .form c a l l e d a W ith h o ld in g Exem ption C e r t i f i c a t e .
The C o ll e c t o r o f I n t e r n a l Revenue i n y o u r d i s t r i c t w i l l
s u p p ly you w ith as many a s you n e e d . I t i s up to you
to g iv e one t o e v e ry one o f y o u r em p lo y ees. And i t i s
up to you o t h e r s , a s em p lo y ees, t o f i l l o u t th o s e C e r t i f i
c a t e s , s ig n them and th e n r e t u r n them p ro m p tly t o yo u r
e m p lo y er. On t h i s E xem ption C e r t i f i c a t e you t e l l him
w h e th e r you a r e m a rr ie d o r s i n g l e and how many d e p e n d e n ts
you h a v e . I t g iv e s th e em ployer th e in f o r m a tio n he n eed s
so t h a t he can exem pt th e p r o p e r amount o f y o u r p ay from
th e 20 p e r c e n t w ith h o ld in g .
- 4 -
jvfr. S u l l i v a n , do I have t o f i g u r e th e e x a c t 20. p e r c e n t
o f e a c h o f th o s e am ounts above w ith h o ld in g ex em p tio n s?
S u lliv a n :
No. Em ployers may e l e c t - t o u se th e “Wage B ra c k e t T ables*’
w hich a re w r i t t e n i n th e law . These t a b l e s s e t d e f i n i t e
am ounts t o ‘be w ith h e ld from ea c h p a y . For ex am p le, i n
t h e c a s e o f a m a rr ie d em ployee w ith t h r e e d e p e n d e n ts ,
whose w e e k ly wage i s anyw here b etw een f i f t y and s i x t y
d o l l a r s , th e em ployer is- p e r m itte d t o w ith h o ld a f l a t
amount o f $ 2 .6 0 p e r w eek, in s t e a d o f r e q u i r i n g him t o f i g u r e
th e e x a c t am ount f o r eac h i n d i v i d u a l em ployee. The law'
g r a n ts th e em p lo y er t h i s ’’s h o r t - c u t ” m ethod i n o r d e r t o '
s im p l if y t h e jo b o f com puting th e am ount t o be w ith h e ld
from e a c h ^ in d iv id u a l em ployee. The am ount o f t a x w ith h e ld
may be s l i g h t l y d i f f e r e n t from an e x a c t c o m p u ta tio n a t
20 p e r c e n t, b u t t h i s d oes n o t h u r t th e em ployee a n y . If
a l i t t l e l e s s th a n t h e a c t u a l 20 p e r c e n t i s w ith h e ld he
may have a s m a ll b a la n c e t o p a y when n e x t M arch 1 5 th comes
a ro u n d . If a t r i f l e more t h a n th e e x a c t 20 p e r c e n t i s
w ith h e ld , th e em ployee w i l l have a c r e d i t coming to him*.
Woman
W orker:
I was w o rk in g l a s t y e a r , t o o , and my incom e t a x f ig u r e d t o
a b o u t $ 6 0 . I p a id a q u a r t e r o f i t i n M arch t h i s y e a r .
What h ap p en s t o t h a t $15?
Em ployer:
T h at $15 s ta n d s to y o u r c r e d i t as a paym ent on y o u r income
t a x f o r t h i s y e a r . I s n ’t t h a t s o , Mr. S u lliv a n ?
S u lli v a n :
Yes, t h a t i s c o r r e c t .
The $15 you p a id in March c o u n ts
as a paym ent on youi* c u r r e n t 1943 income t a x .
Woman
W orker:
W e ll, do I have t o pay a n o th e r $15 t h i s m onth
q u a r te r ly in s ta llm e n t?
S u lliv a n :
Y es, N o th ia g i n th e new law ch an g es any p e r s o n ’ s o b l i g a t i o n
to pay th e June 1 5 th i n s t a l l m e n t . I t a ls o w i l l be t r e a t e d
as p a r t paym ent o f y o u r 1943 t a x .
Em ployer:
That a p p l i e s to ev ery b o d y ?
in s ta llm e n t?
S u lliv a n :
Yes, ev ery b o d y who h as b e e n p ay in g h i s : 1942 t a x i n q u a r t e r l y
in s ta llm e n ts m u s t make a n o th e r paym ent on o r b e f o r e June 1 5 th ,
Woman
W orker:
Y e ll, i f we have t o make th e s e two q u a r t e r l y p ay m en ts, and
th e n have 20 p e r c e n t ta k e n o u t o f o u r w ages, w hat i s a l l
t h i s " f o r g i v e n e s s ” t h e r e was so much t a l k ab o u t?
th e June 1 5 th
E verybody m ust p ay th e June 1 5 th
a 5
S u lliv a n :
You a r e f o r g iv e n a l l or a la r g e p a r t o f a d e b t w h ic h , u n d er
th e o ld law , you owed to y o u r G overnm ent. I t i s t r u e
t h a t you w i l l keep r i g h t on p a y in g income t a x . You g e t no
h o lid a y from t h a t .
But t h e r e a r e two d i f f e r e n c e s . One
d i f f e r e n c e i s t h a t you a r e p a y in g y o u r t a x a l i t t l e e v e ry
p ay d ay , a s you .earn your money, i n s t e a d o f h a v in g t o save
i t up f o r t h r e e m onths to make q u a r t e r l y p ay m en ts. The
o th e r d i f f e r e n c e i s . . . . . . . . ♦
Employer:
That you a r e p a y in g i t a g a i n s t t h i s y e a r ’ s income t a x d e b t
i n s t e a d o f l a s t y e a r ’ s — i s n ’t t h a t r i g h t ?
S u lliv a n :
T h at i s
th a t is
am ounts
ta x fo r
Employer:
How ab o u t th e r e s t of us w ith h ig h e r incom es? I ' f i g u r e t h a t
75 p e r c e n t o f my own p e r s o n a l 1942 t a x w i l l be f o r g iv e n .
I s t i l l owe a q u a r t e r o f i t .
Does t h e q u a r t e r l y paym ent
I made l a s t March c l e a r t h a t up?
S u lliv a n :
No, That q u a r t e r l y paym ent, a s I have j u s t s a i d , w i l l be
c r e d i t e d a g a i n s t yo u r 1943 t a x l i a b i l i t y . You s t i l l owe
th e Government o n e - f o u r th o f y o u r 1942 t a x . A ssum ing,
o f c o u r s e , t h a t y o u r t a x f o r 1942 i s l e s s th a n f o r 1943,
as w i l l be t h e c a s e f o r th e g r e a t m a jo r it y o f a l l ta x p a y e r s .
Em ployer:
When do I p ay t h a t ?
S u lliv a n :
You may p ay h a l f o f i t March 1 5 th , 1944, and th e o th e r h a l f
a y e a r l a t e r i n M arch, 1945.
Woman
W orker:
I w ould l i k e t o ask w h at p ro o f' 1 have t h a t I have made
th e s e paym ents on my income t a x th r o u g h th e money h e ld o u t
o f my w ag es,
S u lliv a n :
S h o r tly a f t e r th e c lo s e o f th e y e a r , o r w ith y o u r l a s t p ay
i f you s to p w o rk in g b e f o r e t h e end o f t h e y e a r , yo u r em ployer
w i l l g iv e you a r e c e i p t showing th e t o t a l amount o f th e t a x
d e d u c te d and w ith h e ld from y o u r p ay d u r in g th e y e a r .
Employee:
What do I do w ith t h a t r e c e i p t ?
S u lliv a n :
You ta k e good c a r e o f i t .
you have p r e p a i d .
e x a c tly r i g h t .
For t h e m a j o r i t y o f th e ta x p a y e r s «*•
t h e p e o p le w ith low o r a v e ra g e in co m es'w h o se t a x
t o $50 o r l e s s f o r e i t h e r 1942 o r 1943, th e w hole
t h e s m a lle r y e a r w i l l be f o r g i v e n ,
I t i s y o u r r e c e i p t f o r t h e ta x e s
I
$
f
I
6
Em ployee:
Suppose th e amount w ith h e ld d u r in g t h e y e a r am ounts to more
th a n t h e t a x I owe for th e y e a r?
S u lliv a n :
Any overpaym ent o f ta x e s w i l l be. re fu n d e d o r c r e d i t e d t o you.
Em ployee?
W hat w ould happen i f my r e c e i p t from my em ployer g e ts l o s t
o r d e s tr o y e d ?
S u lliv a n :
You a p p ly to th e em p lo y er f o r a co p y o f th e r e c e ip t*
Woman
W orker:
What w ould hap p en i f my em p lo y er w ith h e ld t h e t a x from
my w ages b u t d id n o t t u r n i t o v e r t o th e Government?
S u lliv a n :
You a r e c o m p le te ly p r o t e c t e d . The r e c e i p t you g e t from
y o u r em p lo y er i s y o u r p r o o f o f t h e f a c t t h a t you have
p a id t h a t much t a x .
Woman
W orker:
Do I hav e t o w a it u n t i l t h e end o f th e y e a r t o g e t a t a x
r e c e i p t f o r t h e money my em ployer h a s w ith h e ld from my
w ages?
S d lliv a n :
Y es, u n le s s you change employment d u r in g t h e year*
g e t y o u r r e c e i p t w ith y o u r l a s t p a y .
Employee?
Suppose I change jo b s s e v e r a l tim e s d u rin g th e y e a r .
S u lli v a n :
T hat d o es n o t make an y d i f f e r e n c e . Each em p lo y er m ust g iv e
you a r e c e i p t show ing th e amount o f t a x he w ith h e ld .
Employer:
I have h e a rd o r re a d in th e p a p e rs t h a t some c l a s s e s o f
em ployees d o n * t have a n y th in g w ith h e ld from t h e i r w ag es.
*
I
I
I
Then you
S u lli van:
T hat i s c o r r e c t .
T here i s no w ith h o ld in g from th e p ay o f
th e p e r s o n n e l o f th e armed s e r v i c e s . M in is te r s o f th e g o s p e l
a r e a l s o exem pt from w ith h o ld in g . So a r e a l l p e rs o n s
engaged in d o m e stic and a g r i c u l t u r a l s e r v i c e . However,
a l l th o s e p e o p le w i l l be r e q u ir e d t o p ay t h e i r incom e
ta x e s o u t o f t h e i r c u r r e n t incom e. They do t h i s by f i l i n g
a r e t u r n show ing th e .ir e s tim a te d t a x and p ay su ch t a x
q u a rte rly ,
Announcer?
Our tim e i s a lm o st g o n e. B efo re we c l o s e , i s t h e r e a n y th in g
you e s p e c i a l l y w ant t o em p h asize, Mr, S u lliv a n ?
Y es. X w is h t o em p h asize t h a t n o th in g i n th e new law
e x c u s e s anyone f*-om m aking h i s o r h e r June 1 5 th income
t a x p ay m en t, T h at i s due n e x t T u esd ay . .And f i n a l l y I
w ant to u rg e a l l em p lo y ers t o ,g e t th o s e W ith h o ld in g
Exem ption C e r t i f i c a t e s i n t o th e h an d s o f y o u r em ployees
r i g h t aw ay. To a l l em ployees I w an t to s a y , ”P le a s e f i l l
o u t and s ig n th o s e C e r t i f i c a t e s and r e t u r n t o y o u r .em ployer
im m e d ia te ly ,”
-
The personal exemption for withholding is an amount of wages on which no tax is withheld. The
exemption is larger for married persons living together and for heads of families than for single persons
who are not heads of families or married persons not living together and not heads of families. If a hus
band and wife living together both receive wages, they may divide the exemption equally, or one may take
all and the other none, as they agree. An additional exemption for certain dependents is allowable to the
person furnishing the chief support of such dependents.
An Employee’s Withholding Exemption Certificate shall be filled in by the employee and furnished
immediately to each employer. In case of a change in marital or dependency status, a new exemption cer
tificate shall be filled in and furnished to the employer not later than 10 days after such change occurs.
Upon commencement or change of employment, an exemption certificate shall be furnished the new
employer on or before the date of such employment.
If no exemption certificate is filed by the employee with the employer, no withholding exemption is
allowable.
Severe penalties are imposed for willfully supplying false or fraudulent information or for willful
failure to supply information which would reduce the withholding exemption.
U . S . GOVERNMENT PR IN T IN G O FFIC E
16-34596-1
U. S. TREASURY DEPARTMENT
I nternal R evenue S ervice
EM PLOYEE’S W ITHHOLDING EXEM PTION CERTIFICATE
n
,.
c T
m
. ^
„ T
(Collection of Income Tax at Source on Wages)
1
N am e_______ „___________________________________________
(Print full name)
A ddress-------------------------------------------------------------------- -------------------------------(Print home address)
---------------------------------------------------- ---------------------------- ----------------
Social
Security
No____
I. Check the box in the line below which applies to you on the date this form is filled in :
Married person living with husband or wife but claiming none of the personal exemption________________
(1) □
Married person living with husband or wife but claiming half of the personal exemption________________
(2) □
Single person (not head of a family) or married person not living with husband or wife (not head of a fam ily).
(3) □
Married person living with husband or wife and claiming all of the personal exemption (spouse claiming
none of the exemption)___________________________________________
(4) □
Head of a family (a single person or married person not living with husband or wife who exercises family
control and supports closely connected dependent relative(s) in one household)___________ _*__________
(5) □
II. Number of dependents receiving chief support from you who are either under 18 years of age or incapable of self
_____ support because mentally or physically defective__________________________________________________
I dectere that the entries made herein are a true and complete statement as of the date indicated, pursuant to the Internal
.Revenue Code and the regulations issued under authority thereof.
Date
194---16- 34596-1
(Signature)
^
.........
—
..... .....
* .......................... .
.....
rat©.
They w ill estimate th e ir tax.for the current year and pay
A
quarterly within the year.
Taxpayers who have more than $100 o f income not subject to
withholding and whose tojbal gross income would require them to f i l e
inoome tax returns at the end o f the year must f i l e a declaration of
estimated tax with the C ollector of Internal Revenue on September 15
th is year, and on March ll^ e a c h year beginning with 1944, and pay
the estimated tax due.
They may revise th eir estim ates each quarter
and increase or decrease*%h©4«* pa^
A special rule applies to farmers.
They may f i l e th e ir declaration*
any time up to December 15.
^axpayef s WTO' Uliilm csliliBPit* t h e ir tew ore "pea^ 4 « e d .
Every taxpayer is required to f i l e a fin a l return on or before
March 15, 1944. - On th is return adjustments w ill be made for difference*
between estimated or withheld tax, or both, and the correct tax
reported by the taxpayer.
On th is return, a ls o , Victory taxes withheld from January 1 to
June 30, 1943, and income and Victory taxes withheld from July 1
through December 31, 1943, ineome tax installm ents paid Mareh 15
and June 15, 1943, and any additional estimated taxes paid September
15 and
15§ 1943, w ill be credited as payment of the 1943 ta x .
I f the taxpayer owes more, he must pay that amount in f u l l at th is
tim e.
balance
I f he owes le s s , the Treasury w ill refund or credit the
page 6
jL tX a te ;
Taxpayers •who have more than $100 o f income not su b je c t
to w ith h o ld in g , and
whose t o t a l g ro ss income would req u ire
them to f i l e income ta x retu rn s at th e end o f th e y ea r, a ls o
must f i l e
current r e tu r n s.
The cu rren t retu rn s are d e c la r a tio n s o f the ta x
which
th e person making th e retu rn e s tim a te s he w i l l have to pay
f o r th e cu rren t y ea r. These d e c la r a tio n s are t o be f i l e d w ith
the c o l le c t o r o f In te r n a l revenue on September 15, 1943, and
on March 15 each year s t a r t in g w ith 1944. The estim a ted tax
i s t o be paid q u a r te rly , a f t e r c r e d it i s taken f o r amounts
w ith h eld
or oth erw ise already p a id . The estim a tes may be
r e v is e d each q u a rter, with payments in c r e a se d or d ecrea sed
a cc o rd in g ly .
A sp ecie
Every employer i s required to withhold the proper amount from
h is employees#
He is e n title d to rely on the employee’s exemption
c e r tific a te in computing the amount to he withheld#
I f the employee
f a ils to furnish the c e r tific a te , no exemption w ill be allowed#
It i s the employee’s resp o n sib ility to furnish h is employer with
information concerning h is family status#
The employer i s required to give each employee at the end
of the year, or a t the termination o f h is employment, a w ritten
statement showing the wages paid him during the year and the
amount o f tax which has been withheld, except that an extension
of 30 days may be granted by the Commissioner o f Internal Revenue.
This statement is the employee’ s receipt for tax withheld#
Each employer withholding #100 mnmk or more a month w ill be
required to pay over the tax withheld from h is employees to a
depositary j&ithorized by the Secretary of the Treasury#
These
payments are to be made w ithin 10 days afteijfche close of each
calendar month, and the employer f i l e s a return at the end of
each quarter#
In place o f the present information returns on wages, the
employer is required to attach to the la s t quarterly return for
the calendar year copies of the receip ts given h is employees so
they may be checked against the employees’ individual returns#
Persons whose tax is not withheld at the source, or not
adequately withheld, w ill have to f i l e current returns#
Included
in t h is group are (1) those whose incomes are not derived from
wages and sa la r ie s, but from business, fanning, rents and r o y a ltie s ,
in terest and dividends, and (2) those who, although subject to
withholding, receive income taxable at more than the 20 per cent
4
person*, #500; for married persons, #1,200; fo r each dependent, #350*
With the exception o f certain specif* ’
s, withholding appliesii
to every individual who receives for h is
services wages
that amount to more than the exemptions*
Wages, for withholding
purposes, means a l l remuneration (other than fees paid to a public
o f f ic ia l) for services performed by an employee for h is employer,
including the cash value of a l l remuneration paid in Any medium
other than cash*
Among those excluded by the law from income and Victory tax
withholding are;
Members of the m ilitary or naval forces;
agricultural labor; m inisters o f the gospel; domestic servants
in private homes, college fr a te r n itie s or clubs; casual labor;
U* S* c itiz e n s employed by foreign governments or the Philippine
government; non-resident a lie n s other than residents of contiguous
countries who enter and leave the country at frequent in te rv a ls.
or as may be designated by regulations*
employee promptly inform h is employer of h is family status and the
number of h is dependents, so the employer may determine the amount
to lyriT be withheld*
The employee furnishes
his employer with
th is information through a signed withholding exemption c e r tific a te *
I f his status changes, the employee i s required to give h is employer
a new c e r tific a te within 10 days*
Employers are not required to
put changes in status into e ffe c t immediately, but are given ample
time to adjust th eir payrolls through a provision for recognizing
changes on eith er January 1 or July 1*
.
The f i r s t requirement o f the withholding system i s th at the
3
deducted from h is weekly pay*
The amounts withheld for income Imp and Victory tax are combined
in a single deduction from each wage payment*
I f the employer uses
the exact computation mfethod, wages may be computed to th e nearest
d o lla r.
That i s , i f the employee’ s wage i s $45.60, the employer may
trea t i t as #46*
Every employee is allowed a withholding exemption on h is wages
which varies with h is family status*
The withholding exemption for
a sin gle person i s at the rate of $624
for the yearj for a
married person claiming a l l the personal exemption, or the head of
a fam ily, $1,248; for a married person claiming h a lf of the personal
exemption, #624; for a married person claiming none o f the personal
exemption, #0, Wien a husband and wife both work, i f they so agree,
one may take a l l o f the exemption or they may s p lit i t equally*
Proportional exemptions are allowed for separate nay periods*
For
example, the weekly wage earner who is' single w ill have an exemption
of $12 a week*
For each dependent, other than the f i r s t dependent in the case
of a head o f a fam ily, an additional withholding exemption at th e rate
of $312 | p M
for the year is allowed*
For withholding purposes
a dependent i s "a person dependent upon and receiving h is ch ief
support from the employee and eith er under 18 years of age or incapable
o f self-support because mentally or physically defective*"
These exemptions are for withholding only and are used for
determining the sums to be withheld*
They d iffe r in £ome degree
from income tax exemptions, but do not change them*
Income tax
exemptions, for the fin a l ca lcu la tio n s, continue to be:
For single
2
Under t he new system of collection * taxpayers w i l l pay most o f
th eir taxes on th eir 1943 incomes in 1943* Amounts withheld w ill be
credited against the tax l ia b ilit y reported on the income tax return
f ile d March 15* 1944* or in certain cases on returns f ile d September
15 and December 15* 1943*
Heretofore, income taxes for any one year have been payable in
four installm ents during the follow ing year* Withholding in it ia t e s
a system of co llec tin g income taxes on income as i t i s earned through
weekly* semi-monthly* or monthly deductions from pay envelopes*
It
i s the same c o lle c tio n system that has been used in connection with
so cia l security taxes* the Victory tax and War Bond payroll allotment
plans*
Here are some o f the more important features of the new Current
Tax Payment Act o f 19431
Withholding o f income i s at th e rate o f 20 per cent on wages
over and above withholding exemptions*
Because o f these exemptions,
the sura withheld runs a l l the way from zero up to 20 per cent of
wages*
In the case of the majority o f wage earners, however*
withholding w ill not be more than 12 per cent o f gross pay*
The
withholding i s computed according to the family status o f the
taxpayer — that is* whether he i s single* married* the head o f a
family* or has dependents*
The employer may arrive at the amount to be withheld by computing
20 per cent of the
em ployees wages over the withholding exemption,
or determine the amount by using tab les included for convenience in
the law*
For example* i f ta b les are used* a man with a wife and
two children* who earns $65 a week* w ill have $5*80* or 8*9 per eent^
Secretary of th© Treasury H©nry Morgehthau, Jr®, today called
upon th© Nation*s wage earners to lose no time in f i l l i n g out
withholding exemption c e r tific a te s as the f i r s t requirement of
the new system o f co llec tin g income tax at th e source on wages**
The Current Tex Payment Act o f 1943 becomes e ffe c tiv e July 1®
Withholding exemption c e r tif ic a t e s , known as Form W-4, are
now being distributed to employers by the C ollectors o f Internal
Revenue®
Information concerning family status supplied by employees
to employers on these forms w ill determine the amount o f wages to
be withheld from employees1 pay envelopes beginning with the f i r s t
pay day for a pay period startin g on or a fte r July 1®
The Secretary pointed out that the sooner Form W-4 i s f i l l e d
out, the sooner employers can adapt th e ir accounting systems to
the new c o lle c tio n system*
He emphasized that the tax withheld
is not in addition to regular income and Victory ta x , but "goes
toward paying that tax*"
The quarterly income tax installm ents
paid March 15 and W li'ip ate June 15, before withholding goes into
e f f e c t , w ill apply to the tax on 1943 income, he said*
Explaining that "to pay the co sts o f v ictory, both taxes and
^Bonds are necessary," Mr. Morgenthau declared that "with the
convenient way of paying taxes as you go, the chances are you w i l l
even be able to buy more bonds than before."
utrt/
7
t0^*, / ? Ksi
(/si>
17- A
(Note to e d it o r s : I f you have not alrea d y reproduced
the en closed W ithholding Exemption C e r t i f i c a t e , i t w i l l
be ap p reciated i f you w i l l do so in com m otion w ith t h i s
sto r y •)
^
n*A
TREASURY DEPARTMENT
Washington
FOR.RELEASE MORNING NEWSPAPERS,
Thursday, June 17, 1943.
Press. Service
No. 37-1
(Note to ed ito rs: If you have not
already reproduced the enclosed Withholding
Exemption C e rtific a te , i t w ill be appreciated
i f you w ill do so in conjunction with this
s to r y .)
Secretary of the Treasury Henry Morgenthau, J r ., today
called upon the Nation’s wage earners to lose no time in
f il lin g out withholding exemption c e rtific a te s as the f i r s t
requirement of the new system of co llectin g income tax a t
the source on wages.
The Current Tax Payment. Act of 1943
becomes effectiv e July 1,
Withholding exemption c e rtific a te s , known as Form W-4,
are now being d istrib u ted to employers by the Collectors of
Internal Revenue. Information concerning family status sup
plied by employees to employers on these forms w ill d e te r
mine the amount of wages to be withheld from employees’ pay
envelopes beginning with the f i r s t pay day for a pay-period
startin g on or a fte r July 1.
The Secretary pointed out th a t the sooner Form W-4 is
f ille d out, the sooner employers can adapt th eir accounting
systems to the new collection system. He emphasized that
the tax withheld is not in addition to regular income and
Victory tax. The quarterly income tax installm ents paid
March'15 and June 15, before withholding goes into e ffe c t,
w ill apply to the tax on 1943 income, he said.
~ 2 *
Under the new system of co llectio n , taxpayer's w ill pay most
of th e ir taxes on th e ir 1943 incomes in 194.3* Amounts withheld
w ill be credited against the tax l i a b i l i t y reported on the in
come tax return f ile d March 15, 1944, or in certain cases on
returns f ile d September 15 and December 15, 1943,
f
Heretofore, income taxes fa r any one year have been nayable
in^four installm ents during the following year, Withholding
in itia te s a system of co llectin g income taxes on income as i t is
earned through weekly, semi-monthly, or monthly deductions from
pay envelopes, I t is the same co llectio n system th at has been
used in connection with social security taxes, the Victory tax
and War Bond payroll allotm ent plans.
Here are some of the more important features of the new
Current Tax Payment Act of 1943:
W ith h o ld in g ^ income is a t the rate of 20 per cent on wages
oyer and above withholding exemption's* Because of these exemp
tions, the sum withheld runs n il the way from zero up to 20 per
cent-of wages* In the case of the m ajority of wage earners,
however, withholding w ill not be more than 12 per-cent of gross
pay. The withholding is computed according to the family status
of the taxpayer - - t h a t is , whether he is single, married, the
head of a family, or has dependents.
The employer may arrive at the amount to be withheld by
computing 20 per cent of the employee*s wages over the withhold
ing: exemption, or determine the amount bv us in?? tables included
for convenience in the law. For examoie, u tables are used,
a man with a wife and two children, wtio earns $ 6 5
week, w ill
have $5.30, or 8.9 per cent, deducted from his weekly pay,
The amounts withheld fo r income and Victory tax are combined
in a single deduction from each wage payment. If the employer
uses the ex(a ct computation method, wages may be computed to the
nearest d o llar, That is , if th e •employee’s wage is $45*60, the
employer may tre a t i t . $46*
Every employee is allowed a withholding exemption on his
wages which varies with his family status* ■ The withholding
exemption for a single person is a t the rate of $624 for the
year; for a married person claiming a l l the personal exemption,
——*
/
- 3>
or the head of a family* $1,246; for a parried person* claiming
half o£-~the personal exemption, $624; for a married person .claim**
ing none of* the personal exemption, $0, Ifhen a husband and wife
both^ work, i f they^so agree, one may take at 1 of the exemption
or_they may s p lit i t equally, proportional exemptions are
allowed for^separate pay periods. For example, the weekly wage
earner who in single w ill have an exemption of $12 a week.
For each dependent, other than the f i r s t dependent in the
case oi a head of a family^ an additional withholding exemption
at the rate of $dl2 for the year is allowed. For withholding
purposes a dependent is "a person dependent upon and receiving
his chief support from the employee and eith er under 18 years of
age or incapable of self-support because mentally or physically
defective* f
These exemptions are for withholding only and are used for
determining the sums to be withheld. They d iffe r in some degree
from income tax exemptions, but do not change them. Income tax
exemptions, for the fin a l calculations, continue to be: For
single persons, $500; for married parsons, $1,200; for each de
pendent, $350,
.With the exception of certain specified groups, withholding
applies to every individual who receives for his.personal services
wages that amount to more than the exemptions, Wages, for with
holding purposes; means a l l remuneration '(other than fees paid to
a public o ffic ia l) for services performed by an employee for his
employe]', including tiie cash value of a l l remuneration paid in
any medium other than cash.
Among those excluded by the law from income and Victory tax
withholding are; -Members qi the m ilitary or naval forces;
ag ricu ltu ral labor; m inisters of the gospel; domestic servants
in private .homes, college' f ra te rn itie s or clubs; casual labor;
U. S .citizens -employed by foreign governments or the Philippine
government; .non-resident aliens, other -than residents of contiguous
countries who. enter and leave the country a t frequent in terv als,
or as may he designated by regulations.
The f i r s t requirement of the withholding system is that the
employee promptly inform his employer of his"fam ily status and the
number of his dependents, so the employer may determine the amount
Ic
- 4 to^be withheld* The employee furnishes his employer with this
iniormstion through a signed, withholding exemption c e rtific a te *
If his status changes, the employee is required to give his
employer a new c e rtific a te within ,10 days* Employers o.re not
required to put changes in statu s in to effe-ct immediately, but
are given ample time to adjust th e ir payrolls through* a provision
for recognizing changes on e ith er January 1 or July 1#
Every employer is required to withhold the proper amount
from his
employees.
d p to
.
. .He is
. peinp title
iP M M
p i H re
i Hly
L ion
p } tmhe
§ emplo;
_ ..r ~ o y e e Ts
exemption c e rtific a te in computing the amount to be withheld*
If the employee falls^ to furnish the c e r tif ic a te , no exemption
w ill be
allowed.
I t is the
employee’s Arec sp
to
”
- v• - ^
O
&A.J So
J ln
l i i sib
.L U .1.ility
A. X l / j
UU 1furnish
JU
his employer with information concerning his family sta tu s.
The employer is required to give each employee a t the end
of the year, or at the term ination of his employment, a w ritten
statement showing the wages paid him during the year and the
amount of tax which has been withheld, except that an extension
of ^30 days may be granted by the Commissioner of In te rn a l“Revenue*
This statement is the employee’s receip t for tax withheld,
#Each employer withholding $100 or more a month w ill be
required to pay^over the tax withhold from his employees to a de
positary authorized by the Secretary of the Treasury, These pay
ments are to be made w ithin lO days a fte r the close of each
calendar month, and the employer f ile s a return a t the end of each
quarter.
In place of^the present information returns on wages, the
employer is required to attach to the la s t quarterly return for
the calendar year copies of the receip ts given his employees so
they may he checked against the employees'^ individual"’returns.
Persons whose tax is not withheld a t the source, or not
adequately withheld, w ill have to f il e current returns.. Included
in th is gro.up are (1) those whose incomes are not derived from
wages and sa la rie s, but from business, farming, rents and royal
tie s , in te re s t and dividends* and (2) those who, although subject
to withholding, receive income taxable a t more than th e ’20 per
cent ra te , "
”
*
-
0 **
Taxpayers who have more than $100 of income not subject
to withholding, and whose to ta l gross income would require
them to f ile income tax returns at the end of the year, also
must f ile current retu rn s.
The current returns are declarations of the tax which the
person making the return estim ates he w ill have t- pay for the
current year. These declarations are to be file d n +■}u the
collector of in tern al revenue on September 15, 13 At qo . and on
March 15 each year sta rtin g wi
1944. The estimated tax is
to be paid quarterly, a fte r c re d it is taken for amounts withheld
or otherwise already paid. The estim ates may he revised each
quarter, with payments increased or decreased accordingly.
A special rule applies to farmers. They may f ile th e ir
declarations any time up to December 15.
Every taxpayer is
to f i l e a fin a l return on or before
March no 1944, On this- re tu rn adjustments w ill be made for d if- \
Terences between estimated or withheld tax, or both, and the correct
tax reported by the taxpayer.
On th is return, also, Victory taxes withheld from January 1
to June 30, 1943, and income and Victory taxes withheld from
July 1 through December 31, 1943, income tax installm ents paid
March 15 and 'June 15, 1943, and any additional estimated taxes
paid September 15 and December 15, 1943, w ill be credited as
payment of the 1943 tax. If the taxpayer owes more, he must pay
that amount in f u ll a t th is time. If he owes le ss , the Treasury
w ill refund or cred it the balance.
Table 1
Examples of effect of withholding under the Current Tax Payment Act of 1943
on the payment of income and Victory tax for selected weekly wage levels
Single person - no dependents 1/
Weekly
wage 2/
$17,50
32* 50
27,50
35.00
45.00
55.00
65,00
'75.00
85.00
95.00
: Amount to : Withholding ? Annual total : Annual income
land net Victory
to be
:be withheld; as a percent 1
1 *tax liability 3/
l weekly
:
; withheld
of wages
$ 1,10
2.10
3.10
4,60
6,60
8.60
10,60
13.60
14,60
16,60
6,3^
9.3
11,3
13,1
14,7
15.6
16.3
16.8
17.2
17,5
$ 57.20
109.20
161.20
239,20
343.20
447,20
551,30
655,20
759,20
863,20
Treasury Department, Division of Tax Research
$ 73*73
126,48
184.23
262.85
373,35
489.85
613,27
737.37
861.48
991.32
June 10, 1943
if Assuming taxpayer receives the full amount of the exemptions,
2/ The wage levels, selected represent the mid-points of the wage brackets
in the withholding tables provided by the Act for the use of employers*
3/ The tax liability is shown for illustrative purposes, and for any
taxpayer the actual liability will not necessarily be the amount shown*
The liability shown, is computed on the basis of wages for a full year.
Victory tax net income is assumed to be equal to wages received and,
to allow for average deductions, net income for the regular individual
income tax is assumed to be 6 percent less than wages received. On
annual wages of not over $3,000, income tax taken from simplified return
(.Form 1040A, 1942).
Hotel
If an individual has taxable income on which the full tax liability
is not collected at source, he will generally be required to file a
declaration of estimated tax and to pay the estimated tax quarterly.
Table 3
Examples of effect of withholding under the Current Tax Parent Act of 1943
on the payment of income and Victory tax for selected weekly wage levels
Harried person - no dependents
Weekly
wage
2/
$17,50
22,50
27,50
35.00
*45,00
55,00
65,00
75,00
85,00
95,00
Xj
; Amount to ? Withholding { Annual total ;
{be withheld{ as a percent ;
to be
t
» weekly
:
of wages
:
withheld
{
$
^20 4/
,TO 4/
.70
2,20
4,30
6,20
8,20
10,20
12.20
14.20
1,1i
1*3
| 2,5
6,3
9,3
11,3
12,6
13,6
14.4 •
14,9
$ 10,40
15.60
36.40
114.40
218.40
322,40
426,40
530.40
634,40
738,40
Treasury Department, Division of Tax H^search
Annual income
and net Victory
tax liability 3/
$
8.58
16.38
45.18
120,88
227,48
334,08
439,39
558.80
679,00
799,21
June 10, 1943
1/ Assuming taxpayer receives the full amount of the exemptions,
2/ The wage levels selected represent the mid-points of the wage brackets
in. the withholding tables provided by the Act for the use of employers.
3/ The tax liability is shown for illustrative p u r p o s e s , and for any taxpayer
the actual liability will not necessarily be the amount shown* The
liability shown is computed on the basis of wages for a full year.
Victory tax net income is assumed to be equal to wages received and,
to allow for average deductions, net income for the regular individual
income tax is assumed to be 6 percent less than wages received. On
annual wages of not over $3,000, income ta^ taken from simplified return
(Porm 1040A, 1942) f'
4/ On the basis of the wage bracket withholding tables. Precise computation
of tax would give slightly different results,
Notes
If an individual has taxable income on which the full tax liability
is not collected at source, he will generally be required to file a
declaration of estimated tax and to pay the estimated tax quarterly.
Table 3
Examples of effect of \*ithholdlng under the Current Tax Payment Aet of 1943
on the payment of Income and Victory tax: for selected weekly wage levels
Harried parson # One dependent l/
Weekly
wage 2 /
$17,50
22,50
27,50
35,00
45,00
55,00
65,00
75,00
85,00
95,00
1
Amount to 1 Withholding : Annual total
: be withheld 5 as a percent :
to be
i
weekly
:
of wages
;
withheld
$
.20 4/
,»!/
,50 4/
1,00
3,00
5,00
7,00
9,00
11,00
13,00
,1 #
1,3
1.8 .
2.9
6,7
M
10,0
13,0
12,9
13.7
1
Treasury Department, Division of Tax Research
$ 10.40
15.60
26,00
52.00
156.00
260.00
364,00
468,00
572,00
676,00
: Annual income
? and net Victory
* tax liability 3/
$
8,29
15,83
23,37
55,68'
160,76
262,84
370,02
478.52
598,21
717,89
June 10, 1943
1/ Assuming taxpayer receives the full amount of the exemptions,
£/
wa^ e levels selected represent the mid-points of the wage brackets
in the withholding tables provided by the Act for the use of employers,
3/ The tax liability is shown for illustrative purposes, and for any tax
payer the actual liability will not necessarily be the amount shown.
The liability shown is computed on the basis of wages for a full year,
victory tax net income is assumed to be equal to wages received and,
to allow for average deductions, net income for the regular individual
income tax is assumed to be 6 percent less than wages received. On
annual wages of not over $3,000, income tax taken from simplified return
(Form 1040A, 1043)#
4/ On the basis of the vrage bracket withholding tables, Precise computation
of tax.would give slightly different results,
$ote;
If an individual, has taxable income on which the full tax liability
is not collected at source, he will generally be required to file a
declaration of estimated tax and to pay the estimated tax quarterly.
•-3a#
Examples of effect of withholding under the Current Tax Payment Act of 1943
on the payment of income and Victory tax for selected weekly wage levels
Married person ■■**. Two dependents 1J
Weekly
wage 2/
$17,50
22# 50
27,50
35,00
.45,00
55,00
65,00
75,00
85,00
95,00
{ Amount to S Withholding j Annual total
: be withheld J as a percent ;
to be
•
weekly
i
of wages
;
withheld
$
,30
*30
,50
.70
1*80
3,80
5,80
7.80
9,80
11,80
4/
£/
4/
4/
1,1#
1*3
1,8
2,0
4.0
M
8.9
10,4
11.5
12,4
Treasury Department, Division of Tax Research
$ 10,40
15,60
26.00
36,40
93,60
197,60
301,60
405,60
509,90
613.60
: Annual income
;and net Victory
;tax liability 3/
$
8,01
15,29
22.57
33,49
90.05
195.61
300.77
405,27
517,42
636,58
June 10, 1943
l/ Assuming taxpayer receives the full amount of the exemptions,
2/ The Wage levels selected re-present the mid-points of the wage brackets
in the withholding tables -provided by the Act for the use of employers#
W
liability is shown for illustrative purposes, and for any tax
payer the actual liability will not necessarily be the amount shown#
The liability shown is computed on the basis of wages for a full year#
Victory tax net income is assumed to be equal to wages received and
to allow for average deductions, net income for the regular individual
income tax is assumed to be 6 percent less than wages received# On
annual wages of not over $3,000, income tax taken from simplified re
turn (Form 1Q40A, 1942)#
4/ On tha..basis of the wage bracket withholding tables# Precise computa
tion of tax would give slightly different results#
Note?
If an individual has taxable income on which the full tax liability
is not collected at source, he will generally be required to file a
declaration of estimated tax and to pay the estimated tax quarterly#
F O R M W -4
: 0. S. TREASURY DEPARTMENT
I I nternal R evenue Service
EM PLOYEE’S W ITHHOLDING EXEM PTION CERTIFICATE
[(Collection of Income Tax at Source on Wages),
i
[■Name----------- L-----------------(Print full name)
Rddress------------------------------------ --------------------------------------------------------------(Print home address)
""
Social
S e c u r it y
| -----------------------------------------------•-------------------------------------------------------------No_______f l _____________________
|I. Check the box in the line below which applies to you on the date this form is filled in:
j|
Married person living with husband or wife but claiming none of the personal exemption_______________
(1 ) Q
Married person living with husband or wife but claiming half of the personal exemption________________
(2) □
Single person (not head of a family) or married person not living with husband or wife (not head of a family) _
(3) □
Mamed person living with husband or wife and claiming tall of the personal exemption (spouse claiming
none of the exemption)_____________________ ___________ ___________________ §
(4 ) q
Head of a family (a single person or married person not living with husband or wife who exercises family
control and supports closely connected dependent relative (s) in one household)______________________
(5 ) □
P- Number of dependents receiving chief support from you who are either under 18 years of age or incapable of self
support because mentally or physically defective____________________________________
I declare that the entries made herein are a true and complete statement as of the date indicated, pursuant to the Internal
Revenue Code and the regulations issued under authority thereof.
|Date---------- -------------------------------, 194—
ie—34596-1
(Signature) _____________________________ ;_______________
The personal exemption for withholding is an amount of wages on which no tax is withheld The
exemption is larger for married persons living together and for heads of families than for single persons
of famihes or married persons not living together and not heads of families. If a hus8S**
toget8er both receive wages, they may divide the exemption equally, or one may take
^ 9 16
n°ae» a®.^ey agree- _An additional exemption for certain dependents is allowable to the
person furnishing the chief support of such dependents.
An Employee’s WitWiolding Exemption Certificate shall be filled in by the employee and furnished
h
I“ ,Case of a change in m aritalor dependency status, a new exemption cer
tificate shall be filled m and furnished to the employer not later than 10 days after such change occurs.
Upon commencement or change of employment, an exemption certificate shall be furnished the new
employer on or before the date of such employment.
allowfble.eXemPtl°nCertifiCateiSfiledby the€m pl°yee With the empIoyer’ no withholding exemption is
Severe penalties are imposed for willfully supplying false or fraudulent information or for willful
failure to supply information which would reduce the withholding exemption.
U . S . GOVERNMENT PR IN T IN G O FF IC E
16— 34596-1
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING- NEWSPAPERS
Monday, Juno
1943
P r e s s S e rv ic e
No.
3 *7 '
C o lle c tio n s o f th e V ic to ry Tax th ro u g h w ith h o ld in g by
em ployers am ounted a s o f June 5 to # 6 8 2 ,3 8 2 ,5 2 3 .2 0 , a c c o rd in g
t o d a ta made p u b lic y e s te r d a y by Com m issioner of I n t e r n a l
Hevenue Guy T. H e lv e rin g . W ith h o ld in g o f th e V ic to ry ta x
from wages and s a l a r i e s began Ja n u a ry 1 . Asv^ o f^ Ju n a _ ^ _
T re a su ry e s tim a te s a t th e b e g in n in g o f th e y e a r were
th a t. V ic to ry t a x c o l l e c t i o n s t o June 30 would t o t a l # 5 3 4 ,6 0 0 ,0 0 0 .
Thus on Ju n e 5, th e e s tim a te f o r th e 6-m onth p e r io d a lr e a d y h a d
been exceeded by # 1 4 7 ,7 8 2 ,5 2 3 .2 0 .
To d a te , th e V ic to ry t a x h as b een w ith h e ld from wages and
s a l a r i e s , above ex e m p tio n s, a t th e r a t e o f 5 p e r c e n t. For
p a y r o l l p e r io d s b e g in n in g on o r a f t e r J u ly 1, t h i s method w i l l
be d is c o n tin u e d and M e V ic to ry ta x c o l le c tio n s w i l l be
in c lu d e d in th e 20 p e r c e n t w ith h o ld in g p la n p ro v id ed , f o r in
th e C u rre n t Tax Payment Act*
-o -
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
S aturday, June 12, 1 9 ^ .
Id-1 1 -^ 3
"-------------- -—rH*
F re s s S e rv ic e
No, 37-2
C o lle c tio n s o f th e V ic to ry ta x th ro u g h w ith h o ld in g by
em ployers amounted as of June 5 to ♦ 6 8 2 ,3 8 2 ,5 2 3 .2 0 , a c c o rd
in g to d a ta made p u b lic y e s te rd a y by Com m issioner o f I n t e r n a l
Revenue Guy T * H e lv e rln g ,
W ith h o ld in g o f th e V ic to ry ta x
from wages and s a l a r i e s began Ja n u a ry 1 ,
T re a su ry e s tim a te s a t th e b e g in n in g o f th e y e a r were
t h a t V ic to ry ta x c o l l e c t i o n s to June 30 would t o t a l
♦ 5 3 ^ ,6 0 0 ,0 0 0 ,
Thus on June 5 , th e e s tim a te f o r th e 6-
month p e rio d a lre a d y had been exceeded by | 1 ^7 , / S 2, 523, 20,
To d a te , th e V ic to ry t a x has been w ith h e ld from wages
and s a l a r i e s , above exem p tio n s, a t th e r a t e o f 5 p e r c e n t.
For p a y r o ll p e r io d s b e g in n in g on o r a f t e r J u ly 1 , t h i s
method w ill be d is c o n tin u e d and V ic to ry ta x c o l l e c t i o n s w ill
be in c lu d e d in th e 20 p e rc e n t w ith h o ld in g p la n p ro v id e d f o r
in th e C u rre n t Tax Payment A ct.
-0Q0-
verdict In Federal Court in Brooklyn suggests th a t the
saaaing story of the Sliopollojs Brothers ra#y have i t s fin is -written
within United States prison walls*
The federal jury, after hearing evidence for* two weeks,
r e t u r n e d its verdict at 11 o'clock last night. Both brothers
were found guilty of violating the Harrison Act on two counts,
and in addition, Elias was c o n v i c t e d of conspiracy.
Sentencing of the ^air probably will be delayed pending
disposition of defense motions.
!£§fe~
m
■KWr-'W*':
^
jj» *,i
as-bottomed trunks and falsely Marked packing boxes* He told
**t8
—-
Europe on which ha conferred personally ld th
''l i a i o p o u l o a Brothers, and was entertained a t lavish dinners.
r-p7 ntOriirfofUr£-0f£icers sald evidence obtained in the Eliopoulos and
Crpi,'c'in,.
al scfcosed numerous instances of double-dealing, doubletraffic^f
5 theGreek
Principals
of the Narcotics
l± f . , t- .e parly 30s.11nf!!?n
"W
ees] ^he
. i—l> brothers
d^d not
b?1
t-fade
Wmtl_
t r a U i o h a u t h ° r i t i e s : w e r e t i p p e d o f f on s h i p m e n t s n r c i e c t e d
° v ° n whon i u ke^ f . v h o a p p e a r e d t o be g r o w i n g t o o p o w e r f u l i n t h e '
when t h e E l i o p o u l o s combine i t s e l f had s o l d them t h e d r u g s ,
‘
Both brothers testified irT"their~ own~~defenee jn the trial
just concluded, George denying any part in the narcotics trade; while
Elias contended he dealt only with the Orient, which, he contended, was
not illegal* An Interesting nolnt in the case was the successful
contention of the Government that the statute of limitations did not
nrevent the long delayed prosecution of the pair,since they had
remained outside the United States.
Tribunals of ju stic e are no novelty to the brothers.
They were
expeU edfroa France following lengthy hearings more than a decade
ago, and^hsd another brush, subsequently, with the law in Germany,
whan a large narcotics seizure seemed to point to '*& £.' Significant
of the potency of in tern atio n al cooperation was the work of French,
B ritish, Netherlands and Gemm au th o rities in keeping Elias Eliopoulos
under surveillance during a journey from Paris to London, thence to
Rotterdam and on to Mannheim, Germany, where he was arrested in March
1932# Released on b ail, Elias skipped to Athens*
there la te in 1932.
yffwOdn^ secure from prosecution *
= £ 2. 171 4, ^ 3 ^
United
so fa r beyond the
voluntarily to
Egyptian
disclosure of h is
an associate in
learning
and American o fficers an
operations.
1928
to asks a
He told of asking
survey
amazingly
a
v
frank
tr ip to China with
of the narcotics traffic} of
th a t there ware large p ro fits to be aadej and of drawing up
a business agree,-sent with a confederate a t Tientsin.
P aris, expanded operations
He returned to
the wartfl, and amassed a fortune
In a few years.
ol*c
$v\
'fcvpJc x
I t remained fo r a second World war to force the Brothers Into
the ju risd ictio n of the country whose laws th*»y had . 4 u r ^ j , and
r .j,
• s-
a quest fur sanctuary only, and as World War I I spread across
Europe th e ir plight became desperate*
The SHopoulos Brother® had been too closely associated with
European p o litics , as well as crime, to feel any emotion except
te rro r as the German hordes swept over most of the continent*
Their t r a i l had led from France to Germany, from Germany to
the Balkans and Greece, and fin a lly from Greece to North Africa.
There they found an unfriendly haven, and the then potent Africa
Corps made i t a hazardous one*
Apparently the possibility of
prosecution on almost forgotten charges in United States courts held
less te rro r for them than the uncertainties of wart am Europe and
Africa*
They fled to the United States in 1941, and the Treasury
officers promptly learned of th e ir presence and proceeded to
assemble th e ir evidence against them*
Treasury o fficers said the l i s t of American associates and
distrib u to rs^ for the Eli ©pottles Brothers constitutes a su b stan tial
"directory4* of American criminals*
Included are such notorious
figures as t^^ N eii^ i^ N eid itch ) brothersj^Samuel Bernstein] August
Del Gracioj^Arthur Hegenheimer ("Dutch" Schulte)] and maqy others*^]
Bernstein, now serving a 10-*yaar narcotics sentence, and facing
another 7-year term a t the conclusion of his
was a major witness for the government in th 8 current t r i a l ^ ' jJate s tif ie d in d e ta il as to how the conspirators used Trans-Atlantic
steamers to transport th e ir contraband cargoes, through such devices
m ilS
® P i® 8
iiiiiR
SIV £
.f :
gjt|||
m
time readily available to th# I l l i c i t tr a f f ic as compared with the
rela tiv e scarcity which has existed during the past several years#
• I t is an eloquent testim onial to the marked progress which,
up to the outbreak of th© present World War, had been madejthrough
in tern atio n al cooperation in the suppression of th is tra ffic * M
In volume and exbait of operations, the Eliopoulos Brothers have
never been approached, in the opinion of Treasury narcotics officers#
heritable t runiT^ado of opium were smuggled in to China from th e ir
European facto ries, in addition to th® vast tr a f f ic directed a t the
United States through the machinations of the p air, who maintained a
wfAoniMas business men and bankers#
i f the expedient of sending to prison one a fte r another of the
Eliopoulos agents and d istrib u to rs in th is country, and by seiaure
a f te r seiaure of costly contraband by Customs, the Treasury o fficers
undermined the foundation of tbs snuggling conspiracy! but the two
principals remained far from the Jurisd ictio n of American courts*
In the meantime, world public opinion was c ry sta llisin g in to a
crusade against th is nefarious business, and in tern atio n al cooperation
in i t s suppression was developing through the medium of the League
of nations with the United States taking a leading part*
The Drug Barons, who boasted of the friendship of kings and
princes, f i nally f e lt the heat# They began a flig h t across in te r
national boundaries, a t f i r s t attempting to take th e ir drug facto ries
and th e ir smuggling technique with them# Finally th e ir hegira became
illI
Ell&s EHopoulos In Federal court in the Eastern D is tric t of
Kew York a sig n ifican t accomplishment in the world-wide fig h t against
i l l i c i t tr a f f ic in narcotics*
11
........ .
the Ho* 1 narcotics smuggling combination of a l l time* »He expressed
g ratific atio n th at the Treasury* s Bureaus of narcotics and Customs
had been able to assemble conclusive evidence against the p a ir "when
a t la s t they came into United States ju risd ic tio n , more than a
decade a fte r th e ir in tern atio n al crime empire began to/ crumble*
by a jury in the court
of Judge Mathew Abrusso in Brooklyn on an indictment growing out of
a large seizure of morphine landed from the steamship Alesia in
19JO* The shipment consisted of 25 cases labelled “furs,*1 but wh*eh
actually contained 1 7 ? 5 0 0 cans of narcotics, worth a substantial
fortune in the traffic of that day;and, at prices prevailing in
the underworld of today, millions of dollars.
The prosecution was directed by United States Attorney
ixarold Maurice Kennedy and his assistant,James G.Scilep'i,
International police annals contain no rao're fan ta stic story tn&n
th a t of the r is e and f a l l of the Bliopouloa Brothers*
The "Drug
Barons of Europe" reached a position of v irtu a l world monopoly in
I l l i c i t narcotics tr a f f ic during the years 1929, 1930, and 1931*
' (1w i 1mi m s;
\ Anslinger says*
"The resurrection of th is case from the comparatively d ista n t
past i s p articu larly in terestin g in th at i t affords a strik in g
contrast between the prodigious quantities of narcotic drugs a t that
r
TREASURY DEPARTMENT
' W ashington
FOR IMMEDIATE RELEASE,
S a tu rd a y , June 12, I 945,
*
P re s s S e rv ic e
No, 37-3
Com missioner o f N a rc o tic s H. J , A n slin g e r to d ay c a lle d th e
c o n v ic tio n o f George and E lia s E llo p o u lo s in F e d e ra l c o u rt in
th e E a s te rn D i s t r i c t o f New York a s i g n i f i c a n t accom plishm ent
in th e w orld-w ide f i g h t a g a in s t i l l i c i t t r a f f i c in n a r c o t i c s ,
Mr, A n s l i n g e r branded^ t h e b r o t h e r s , who a r e Greek n a t i o n
a l s , t h e No, 1 n a r c o t i c s Smuggling com bination o f a l l tim e . He
e x p r e s s e d g r a t i f i c a t i o n t h a t th e T r e a s u r y ’ s Bureaus o f N a r c o t i c s
and Customs had been a b l e to assemble c o n c l u s i v e evidence
a g a i n s t t h e p a i r when a t l a s t they came i n t o U nited S t a t e s J u r
i s d i c t i o n , more th a n a decade a f t e r t h e i r i n t e r n a t i o n a l crime
empire began to crumble.
The E llo p o u l o s B r o t h e r s were c o n v i c t e d l a t e l a s t n i g h t by
a Jury in t h e c o u r t of Judge Mathew Abrusso in Brooklyn on an
in d ic tm e n t growing out of a l a r g e s e i z u r e of morphine la n d e d
from th e ste a m s h ip A l e s i a in 1930* The shipment c o n s i s t e d o f 25
c a ses l a b e l l e d '‘f u r s , ' 1 b u t a c t u a l l y c o n t a i n e d 17,500 cans o f
n a r c o t i c s , w orth a s u b s t a n t i a l f o r t u n e i n t h e t r a f f i c of t h a t
day; and, a t p r i c e s p r e v a i l i n g in the underw orld of today, milrl i o n s of d o l l a r s .
The p r o s e c u tio n was d ir e c te d by U n ite d S ta te s A tto rn e y
H arold M aurice Kennedy and h is a s s i s t a n t , James G, S e ile p p I ,
I n t e r n a t i o n a l p o l i c e a n n a ls c o n t a i n no more f a n t a s t i c s t o r y
th an t h a t of the r i s e and f a l l of t h e E llo p o u l o s B r o t h e r s , The
Drug Barons of Europe" re a c h e d a p o s i t i o n o f v i r t u a l world
monopoly in i l l i c i t n a r c o t i c s t r a f f i c d u r in g th e y e a r s 1 9 2 9 ,
1930, and 1931.
Mr, A n s lin g e r say s;
"The r e s u r r e c t i o n o f t h i s case from th e c o m p a ra tiv e ly d i s
ta n t p a s t i s p a r t i c u l a r l y i n t e r e s t i n g in t h a t i t a f f o r d s a
s t r i k i n g c o n t r a s t betw een th e p ro d ig io u s q u a n t i t i e s o f n a r c o tic
drugs a t t h a t tim e r e a d i l y a v a ila b le to th e i l l i c i t t r a f f i c as
compared w ith th e r e l a t i v e s c a r c i t y w hich has e x is te d d u rin g
th e p a s t s e v e r a l y e a r s ,
" I t i s an e lo q u e n t te s tim o n ia l to th e marked p ro g re s s which,
up to th e o u tb re a k o f th e p r e s e n t World War, had been made
th ro u g h i n t e r n a t i o n a l c o o p e r a t i o n in t h e s u p p r e s s i o n of t h i s
tra ffic ."
I n volume and. e x t e n t of. o p e r a t i o n s , th e E lio p o u l o s B r o th e r s
have n ever been approached, in th e o p in io n o f T re a su ry N a r c o t i c s
o f f i c e r s . V e r i t a b l e t o n s of opium were smuggled i n t o China from
t h e i r European f a c t o r i e s , in a d d i t i o n t o t h e v a s t t r a f f i c d i
r e c t e d a t th e U n ite d S t a t e s th rough t h e m a c h in a tio n s of t h e p a i r ,
who m a in ta in e d a " f r o n t " as b u s i n e s s men and b a n k e r s .
By th e e x p e d ie n t of se nding t o p r i s o n one a f t e r a n o t h e r of
t h e E l i o p o u l o s a g e n t s and d i s t r i b u t o r s in t h i s co u n try , and by
s e i z u r e a f t e r s e i z u r e o f c o s t l y c o n tra b a n d by Customs, th e
T re a s u r y o f f i c e r s undermined t h e f o u n d a t i o n o f t h e smuggling con
s p i r a c y ; b u t th e two p r i n c i p a l s remained f a r from th e j u r i s d i c
t i o n of American c o u r t s .
In t h e meantime, world p u b l i c o p in io n was c r y s t a l l i z i n g i n
to & orusade a g a i n s t t h i s n e f a r i o u s b u s i n e s s , and i n t e r n a t i o n a l
c o o p e r a t i o n in i t s s u p p r e s s i o n was d e v e lo p in g th ro u g h th e medium
of t h e League of N ations w i t h t h e U n ite d S t a t e s t a k i n g a l e a d i n g
p art.
The Drug Barons, who b o a s t e d of t h e f r i e n d s h i p of k in g s and
p r i n c e s , f i n a l l y f e l t th e h e a t . They began a f l i g h t a c r o s s i n
t e r n a t i o n a l b o u n d a r ie s , a t f i r s t a t t e m p t i n g to t a k e t h e i r drug
f a c t o r i e s and t h e i r smuggling te c h n iq u e w ith them. F i n a l l y
t h e i r h e g i r a became a q u e s t f o r s a n c t u a r y o n ly , and as World
War I I sp re a d a c r o s s Europe t h e i r p l i g h t became d e s p e r a t e .
The E lio p o u l o s B r o t h e r s had been too c l o s e l y a s s o c i a t e d w ith
European p o l i t i c s , as w e l l as crime, t o f e e l any emotion except
t e r r o r as t h e German h o rd e s swept over most o f t h e c o n t i n e n t .
T h e i r t r a i l had l e d from France t o Germany, from Germany to
t h e Balkans and Greece, a n d - f i n a l l y from Greece t o North A f r i c a .
There they found an u n f r i e n d l y haven, and t h e th e n p o t e n t A f r i c a
Corps made i t a haz ardous one. A p p a re n tly t h e p o s s i b i l i t y of
p r o s e c u t i o n on almost f o r g o t t e n ch a rg e s i n U n ite d S t a t e s c o u r t s
h e l d l e s s t e r r o r f o r them th a n t h e u n c e r t a i n t i e s o f w&rtorn
Europe and A f r i c a . They f l e d to th e U n ite d S t a t e s in 19^1 >
th e T re a s u r y o f f i c e r s promptly l e a r n e d o f t h e i r p r e s e n c e and p r o
ceeded to assemble t h e i r evidence a g a i n s t them.
T re a su r y o f f i c e r s s a i d th e l i s t of American a s s o c i a t e s , d i s
t r i b u t o r s and c o n n e c ti o n s f o r t h e E l i o p o u l o s B r o t h e r s c o n s t i
t u t e s a s u b s t a n t i a l " d i r e c t o r y " of American c r i m i n a l s . I n c lu d e d
a r e such n o t o r i o u s f i g u r e s as t h e Newman ( N e i d l t c h ) b r o t h e r s ;
Louis "Lepke" B u c h a l t e r ; Samuel B e r n s t e i n ; August Del G racio;
"Legs" Diamond; A r t h u r F legenhelm er ("D utch” S c h u l t z ) ; and many
others.
-
3
~
f Q^ ™ er nS^ i n , *7noW s e r v l n S a 10 - y e a r n a r c o t i c s s e n te n c e , and
f a c i n g a n o t h e r 7 - y e a r term a t th e c o n c lu s io n o f h i s p r e s e n t imS ln f 0!!111?11? ' wa! a ma*5°r w i t n e s s f o r the government in t h e c u r t r * a1, an<* s e v e r a l o t h e r c o n v i c t e d t r a f f i c k e r s a l s o t e s t i used*T r''nsnA t l ' ’n t i ! S! f p i e d *n d e t a i l as to how t h e c o n s p i r a t o r s
used T r a n s - A t l a n t i c s te am e rs to t r a n s p o r t t h e i r contra band e a r
marked
SKCh d e v i£ es as f a l s e - b o t t o m e d tr u n k s and f a l s e l y
b o x e s , He t o l d o f v a r i o u s t r i p s to Europe on
w a s °eennttee rr tt aa i?nneedd r ^a t l a v i s h d i n nw
S l i o p o u l o s B r o t h e r s , and
was
e rist h.
anfl
o f f i °®r s salfl evidence o b t a i n e d ln t h e E l l o p o u l o s
dinMA ° “ ses d i s c l o s e d numerous I n s t a n c e s o f d o u b l e - d e a l <vpDthf°Mb 3'e' f f 0SS*n®’ and even b la c k m a il among t h e p r i n c i p a l s
d i d t n n t Nhp 0 ? t 1? S t r a f f i c o f t h e e a r l y 1 JOs. The Greek b r o t h e r s
d i d not h e s i t a t e to se e t h a t a u t h o r i t i e s were t i p p e d o f f on
shipments p r o j e c t e d by American t r a f f i c k e r s who appeared to be
f ^ g
^ 0 Powerful I n t h e t r a d e , even when t h e E U opoulos
combine i t s e l f had s o l d them t h e drugs*
1m
inot ®o t ^ b r o t h e r s t e s t i f i e d in t h e i r own d e f e n s e i n th e t r i a l
while E l i - s > n A t « n ? r f \ de5y i ? g any p a r t Xn th e n a r c o t i c s t r a d e ;
contended w ^ n o ? d ? ? i he
only w ith th e 0 r i e n t , which, he
f S 2°? m e g & l * An i n t e r e s t i n g p o i n t i n th e case
of l i m i t a t i o n s 8^
c o n t e n t i o n o f t h e G-overnment t h a t the s t a t u t e
I t ?°J 5revent
lo n g d e la y e d p r o s e c u t i o n of
th e p a i r , s i n c e th e y had remained o u t s i d e t h e U n ite d S t a t e s .
Tribunals of justice are no noveltv to the brnthp-na
mhov
a^ecade6^ 3
Jollowlng lengthy hearings more than?
„ . aSn’ and Ellas bad another brush, subsequently, with
polntato1himermti‘^ i e ? en * large naro°blOs seizure seemed to
Leratfnr,^*' Significant of the potency of International coman a u t h S r l t i e s h fn Wv rlC ? f FS f? 5h' B r l t l s h « N e th e rla n d s and G erd u rin ^ a K u rn e v
P ? Ep a? EU ° P ° P lo s u n d er s u r v e illa n c e
on t o SMannhefn!
° m r a r i i! to London, th e n ce to R otterdam and
Relea<?eflnnneh ! i i ' ' Sr ? r y ' where he was a r r e s t e d ln March 1 9 3 2 , .
u e i e a s e d on b a i l , E l i a s skipped to Athens.
n u t i J i h e re J. l a ^ e in
a p p a re n tly f e e l i n g s e c u re from p ro s e and w?ah?n^aL b® r nd 3be J u r l s d iC tlo n o f U n ite d s t a t e s c o £ r? s?
made v o l u n t « ^ i v r r 0 f th e o h a rSes in F ra n c e , E lia s
fra n k d i s n ^ ^ H
^ g y p tia n and Am erican o f f i c e r s an am azingly
I ! 9 a c }??:ure o f b i s o p e r a tio n s . He t o ld o f making a t r i o
c o t i c s t r a f f i c ano ? Si8« f a ? S ^ 1928 to roake a s u r v e y
t h ® narmade* and n r diafrf ^e a r n i n |> t h a t t h e r e were l a r g e p r o f i t s to be
at T i P n t o i n f d£ awing UP a b u s i n e s s agreement w i t h a c o n f e d e r a t e
i L s s e a ? ; r tunpr fnUr^ d t0 P a r l s ' exPanded o p e r a t i o n s and
dSced as
aq ev
Pv?dpnnf
* y e a r s , t rTihis
auceo
iaence 4i n tah ef e Brooklyn
a l . S tate m e n t was i n t r o -
- k ~
4 4.
remained f o r a second World War to f o r c e t h e B r o th e r s
i n t o th e j u r i s d i c t i o n of t h e co u n try whose laws they had f l o u t e d
and i a s t n i g h t ' s v e r d i c t in F e d e r a l c o u r t in Brooklyn s u g g e s ts
t h a t t h e amazing s t o r y of th e E lio p o u l o s B r o th e r s may have i t s
f i n i s w r i t t e n w i t h i n U n ite d S t a t e s p r i s o n w alls,.
The F e d e r a l j u r y , a f t e r h e a r i n g evidence f o r two weeks r e t u r n e d i t s v e r d i c t a t 11 o ' c l o c k l a s t n i g h t . Both b r o t h e r s ’
ande i n ° U^ 1 ?il i l t y irv!' v i o l a t l n g t h e H a r r i s o n Act on two c o u n t s ,
and i n a d d i t i o n , E l i a s was c o n v i c t e d o f c o n s p i r a c y .
°f the Pair Probably will be delayed pending disposition of defense motions.
&
^-oCo-»
p*jrw»nt njstess of the recent Act,/i>rovia* for t a appal
»ut of & txm
tlm u n til Fa
oner arid the extension of
for the release o:
yyiur®
a p p o in tm e n t<
have atteup
many o I
t he 1
jou a ll of the hlnhlirhta m l
ax Payment Act*
The Act
w ill by
4$ th e
that I have beenof
ao^s eld in y*>vr in itia l undere tending 0
m 47 **
P P » a t system of th* recent A ct, provides fo r the appoint
ment of two A ssistant G om issioners of In te rn a l Revenue.
Formerly, there was one A ssistant to the Commissioner.
This p osition has been abolished,
the Aet also provides
th a t time w ill be extended u n til February 29, 1944, fo r the
release of powers of appointment.
I have attempted to give you a l l of the h ig h lig h ts and
■any of the d e ta ils of the Current Tax Payment A ct.
The Act
w ill by painful necessity bacons more and more fam ilia r to
you as the days go on.
I can only hope th a t I have been
of some aid in your i n i t i a l understanding of i t .
46 **
a taxpayer who i s a member of the armed forces la e ith e r
1942 or 1943 w ill not hare th is excess of 1942 tax added
to h is 1943 tax to the ex teat th a t such excess re s u lts from
/
the inclusion in h is income of earned n et income fo r the
year.
Earned n et income which is thus excluded i s th a t
income as defined In section 25 (a) (4) of the Code re la tin g
to the earned income c re d it.
Thus a taxpayer who held a
$10,000 a year job but had no outside income for 1942, and
would, th e re fo re , have a 1942 tax l i a b i l i t y of $2,152, but
who became a p riv ate in the Array ea rly in 1943, and w ith
h is a n y pay exclusion would have no tax l i a b i l i t y for 1943
would not be required to pay as h is 1943 tax the sum of
$2,152 as would a c iv ilia n in a comparable income situ a tio n .
Another miscellaneous provision, unrelated to the current
payment
#
of aaabepa o f
the anaed
48
#
forces below the rook o f
eacnlseioaed o ffic e r.
tvrttvtp, i t I t provided that with retpeet to § water
of tho a mad forooe who diet In active service oa
op
after
ieeeaber 7, 1941, Mgr iaeotae tax lia b ility which i t unpaid
at th* data of Ms death th all not ba collected, aad, i f i t
i* eoUootad
irmith estate, i t th all bo refunded as at
overpayaont. Tbit abatement applies also to tap iatapast
#p penalties added to the tax.
At f tp a t the tra n s itio n to the cu rren t payaani syetes
i t asset road, asabeps of the t n » d fopeaa a r t again gives
e p te la l consideration.
S hort, uadep the to -ea lled f ip a t
aati-w iadfiall provision, the s a n -a ilita ry taxpayer h a t tddtd
to h i t 1843 tax aay t x o t t t of the 1941 tax ovar the 1943 tax ,
a taxpayer
7Sm provisions of the sow Act relating to neobera of
*
& • an aedforoea In activ e service w ith the Col tod S tate*
iwar
^ t h to
« th a t o f way o f the Halted K l « « , re la te
y e a r-la , y ear-out li a b il ity fop incase tax mi,
*l#o to the ep eclal s itu a tio n created by the tra n s itio n to
cu rren t c o lle c tio n .
la tbe f i r s t p lacet seabara o f the
apsed fo rces are granted aa exclusion fro a g rass incase
fop the taxable year 1943 led subsequent yeapa o f 11,500
per year o f th e ir serv ice M
fy ,» provision give* an
Inepeaaed exclusion frost gross laoosse oxer th a t granted
i ^ e r the Revenue Aot o f 1948.
That Act proxidod th a t
$850, la the ease o f a sin g le p e r m , sad $800, la the ease
of a a a rrla d person, should be excluded fro® the gross Incase
of aesbers
** 4S
lia b ilitie s *
m
On tho * th ir iJlfte of III# pic turn by roeocuv of
tb* accelerated gaysmal of tux
or
1943 insesso s a l by reason
of tho carry-over of tho IS percent w areaitted, i t i* e s tim te 4
th a t
tbo Federal Scwenweatw ill
V 1944* S b illio a a ^ l l i o a e
ti» present law.
m
receive | b tho f is c a l year
than i t oould receive trader
Again* in 1946 tho revenue y ie ld to tho
*111 ho Increased by 1 b i l l i e s S4 a illio n a by
woooa o f tho fo o t th a t port of tho 83 percent saoant m~
forgives »1U ho paid la th a t year m i on ad d itio n al 49
B illio n i t i# estimated w ill ho received on aeeount of tho
so-called second m ti-w in d fa ll provision,
th is
mm
provision
v tU add 49 m illion to tho recoipto of tho throo ensuing
fiscal years.
Joint return is me* for 1942 end separate returns ore m&a
for 1943, or vice versa, the taxes of the Rouses for the
year la which a joint return Is not aade are required to be
a g g r e g a te s .
411 this say sound very oosplioated to you, and I cannot
deny that i t la oosplioated, hut strangely enough the puhlle
•ass* to have a tremendous eapaeity far asaiallating hurdeae
and eosplicatlons over a period of tine, He can only hope
that tlae e l11 see the working oat of these probleas along
with others.
I t this point i t sight interest you to know something
of the estiaetee of the revenue yield under the new le t.
'
(a
.
The net effeot of the Act le to re sit i billion 333 slUione
of dollars la tax lia b ility or 03.3 psreent of the 1942
lia b ilitie s .
surtax list income of the bass year, the law provides th a t
th is type of income sh a ll be included in the surtax net
7
/
income of the base year and excluded from the year in which
/
M
*\
i t was received# \\
/f
\
/
Other provisional which e ffe c t tax forgiveness are as
follows*
Mo amount of\th# 1942 tax l i a b i l i t y i s discharged
\
A
in the c&se of an individual who dies in 1942.
.
/
The l i a b i l i t y
\
9
w ill be collected 14 the stud* manner as I f the Current Tax
/
\ *
Payment Act had p o t been enacted# For the purposes of
comparison o f/ta x of a husband akd wife where a jo in t retu rn
j .
/
/-
\\
.
V
,
is made fp* 1942 and separate retu rn s are made fo r 1943. or
vice Versa, the taxes of the spouses fo r th e year in which a
jo in t re tu rn is not made are required to be aggregated.
|
•
jI
Im m m
Ls m b a
p r o v id e s t h a t
IT
jo in t r* to m
40
*
subsequently was liq u id ated w ith the assets acquired and
business carried on by the fc ra s r stockholders a fte r
liquidation*
In such a case the owner or partn er racy
compute Ms surtax net income fo r the base year as i f the
earnings and p ro fits fo r the taxable year of the corporation
•n&ng w ith or w ithin the bee* year had a l l bean d istrib u te d
as dividends.
However, the in d iv id u al’s d is trib u tiv e share
of these hypothetical d iv id e * , can not exceed h i. in te re s t
in the partnership,
Ihe second s itu a tio n is th a t in wMoh the taxpayer
received e ith e r in 1942 or 1943, whichever year i . the seasur,
o f hie tax forgivenees, coapensatlon fo r personal services,
which, under section 107 of the In tern al Revenue Code, would
be a ttrib u te d to the base year.
Here" in eomputing the
surtax net income
** f$9 mequal installm ents oonsnenelng March IS, 1945 In the case
of calendar year taxpayers and corresponding dates fo r
f is c a l year taxpayers.
This extension, unlike the 25 percent
extension which i s without in te r e s t, c a rrie s in te r e s t a t the
ra te of 4 percent per annua on the unpaid balance u n til the
;
date of payment i f w ithin th e period of extension or 6 percent
i f paid a fte r the due d a te .
As ft measure of r e l i e f to possible hardships t i n t would
• r i t . under tid e second M t i n t a a t i U p ro tieio n , there ere
* " provision# of th . i n . J l l B U ,
B
f ir ,t
^ „ l a l , ituitl<1M .
Situetior where th . t e s t e r 1, .
P » t n „ in, or the J | 4 m l owner of . b u eln ,,, * 1 ^
during th . t . . . „ „ . . . oerried
b, . corporation l l
s u b s e q u e n tly
I
88
•
on the amount of surtax net income fo r the base year
plua $20,000*
The amount of th is te n ta tiv e tax so computed
aots as the upper lim it of tax forgiveness.
In other words’
W
i f the 26 percent amount added to the 1943 tax i s le ss than
the difference between the te n ta tiv e tax and the to ta l tax
fo r the year, the excess of th is difference over the 25
percent amount is fu rth e r added to the 1943 ta x ,
Ae in the
case of the 26 percent amount, th is addition i s to be
*
accounted for on th e re tu rn f i l e d fo r 1943 and is not a
oanfonent of the estim ated tax to be paid currently during
follies the 25 percent amount, however, time fo r
payment of th is ad d itio n al amount may be extended over a
period of fiv e years sat the amount can be paid in four
equal installm ents
I
- 87 -
la the war years 1942 and 1943 over what i t m s i a pre-war
years*
Although th ere say he im perfections and some tax
payers who are in no way receiving w ar^profits may f e e l i t s
impact, the Congress believed th a t th is provision w ill sub
s ta n tia lly reduce the tax-forgiveness of persons who are
making enormous p ro fits out of war co n tra cts.
I t w ill apply
only ia situ atio n # where the surtax net income of a taxpayer
fo r both 1942 and 1943 i s mors thsn $20*000 g re a te r than his
highest surtax net income received in any of the years 1937
to 1940* inclusive*
called the base y ear.
The year chosen out of these four is
A te n ta tiv e tax fo r 1942 or 1948
whichever year is the lower in to ta l ta x l i a b i l i t y without
regard to the Current Tax Payment Act, w ill be computed
on tl® amount
m $$ m
1943 tax 25 percent t f the amount of the tax fo r the lower
year or the difference he tween $50 and the amount of the tax,
whichever is the lesser*
For example, an Individual whose
• t<ut l i ^ h i l i t y fo r 1942 was $60 and whose tax l i a b i l i t y fo r
194S was $100 wouM have added to his 3943 tax payable on
March 18th the sum of $10, since one-fourth of $60 i s
g reater than the difference between $80 and $60.
Bse popularly*teraed second an ti-w in d fall provision
widen I w ill now attempt to explain to you seems to be the
proTl8ion)jrhioh causes the g re a te st amount of confusion an#
,'*,»*tm^#l*#***&**,*‘>s
misunderstanding.
I t is probably fo rtu n ate, therefore
th a t I t w ill apply in comparatively few cases,
Tide provi
sion was designed to cut down the tax forgiveness where
an individual’s income i s very s u b sta n tia lly increased
- 35 tax l i a b i l i t y I f found in th« fa c t th a t these taxpayers
expected to and would have had to pay th e ir 1942 l i a b i l i t i e s
i f no change had been made in the law and I t seemed unwise
to reliev e any of th is expected l i a b i l i t y merely to e ffe c t
the change to the current payment system.
I have spoken of 75 percent forgiveness of ta x fo r the
lower of 1942 or 1243.
The law increases th a t forgiveness
to 100 percent in the case of taxpayers whose tax fo r the
lower of the two years is $50 or le s s .
In cases in which
e ith e r the tax fo r 1942 or the tax fo r 1943 does not exceed
$50 and the tax fo r the other year in the comparison is
g re a te r, no 26 percent amount is added to the tax fo r 1948,
and by reason of a notch provision where the tax fo r the
lower year only s lig h tly exceeds $50, th ere is added to the
1943 tax
If
34
year 1943 but must be accounted fo r and paid e ith e r on
March 15, 1944, in the case of a calendar year taxpayer
or one-half on th a t date and one-half a year from th a t
date where an extension of time i s applied f o r .
Where,
however, the 1942 tax l i a b i l i t y exceeds the 1943 tax
l i a b i l i t y , the excess of 1942 l i a b i l i t y is added to and
becomes a p a rt of the tax fo r 1943 and a p a rt of the ostimated
tax which must be paid currently during 1943.
In addition,
there is added to the 1948 tax, 26 percent of t he amount
of the 1943 tax whioh mast be accounted fo r and paid on
March 15, 1944,. or one-half on March 15, 1944 and oneShalf
a year from th a t date.
The reason fo r the requirement that
taxpayers must in any event pay the higher of the 1942 or 194!
tax l i a b i l i t y
- S3 fo r 1943 the estim ated tax nay be eomething a l i t t l e
d iffe re n t than the estimated tax f e r subsequent y ew s.
Since the so-called f i r s t an ti-w in d fall provision requires
th a t the 1943 tax sh all be increased by any excess of the
1942 tax over the 1943 tax, except in the case of members
of the armed forces as I w ill explain la te r , the estimated
tax l a many cases may represent merely the 1942 l i a b i l i t y
decreased by the amounts estimated to be w ithheld during the
year and may, th erefo re, have no re la tio n to the income of
the taxpayer during 1943,
In cases where the 1948 tax l i a b i l i t y exceeds the 1942
tax l i a b i l i t y 26 percent of tho 1942 l i a b i l i t y i s added as
8 P art 0f
* * *«• ^ 4 3 .
tbB
TM« 25 psroent, however, i ,
not a component of the estimated tax to be paid during the
year 1943
m 32 •
th*a h i t 1942 tax l i a b i l i t y would have baaa had i t not
b«an discharged.
That* declarations w ill show the
estim ated t o t a l tax l i a b i l i t y of the taxpayers fo r 1948
and w ill show the amount which the taxpayers estim ate w ill
have been withheld from them during the year, the amount
which has already been paid by them on account of th e ir
1048 tax as payments made o rig in a lly on account of the 1942
tax, and w ill show the balance of th e estimated tax required
to be paid on September 15th and December 15th of th is year,
Thie brings us to the consideration of what happens to
the 1942 l i a b i l i t y ,
As a teehnioal le g al m atter the 1942
tax l i a b i l i t y i . completely discharged.
In e ffe c t, however;
the discharge of tax l i a b i l i t y is in most case.
75 percent
of the tax fo r 1942 or 1948, whichever i . the lower.
Thus,
fo r 1948
• 81 *
fo r tins ttx a b le year 1943*
On September 15 th , individual taxpayers to whom the
eurraat system applies w ill f i l e th e ir d eclaratio n s.
For
th is tra n s itio n year an additional group of wage-earners
w ill be required to f i l e declarations who, once tie tran sitio n
i s accomplished, w ill not be required to f i l e d eclaratio n s.
I re fe r to persons who were required to f i l e a re tu rn fo r
iil§
■S
1942 and whose gross income from wages in 1942 was g reater
than th a t which can be expected fo r 1943 and whose wages
are le s s than the $2700 or $3500 filin g requirem ent.
Filing
by these persons is necessitated by the fa c t th a t the
so-called f i r s t an ti-w in d fall provision in e ffe c t provides
th a t in no event w ill a taxpayer's tax fo r 1943 be le s s
than
1
4* gj» Transition Year
W«
have now cowled two of the four points of my
discussion#
I osn reassure those who a re weary by saying
m a r t "halfway up the stairs#11
the stairs to the transition year
I come at this point of
1948# With respect to
f$iat you and I and the other millions of taxpayers in the
country will hairs to do and to pay in 1948, f ir s t of a ll
lo t me emphasise that those of us who elected to pay our
tax in installments, must pay our June 15th installment, just
as if there had been no legislation changing our system#
then, as of September 1st, 1948, the payments made on account
of the tax lia b ility for the taxable year 1942" will be
considered to be payaanta on account of the tax l i a b i l i t y
m
Jfp *»
installm ent p riv ileg e no longer is available to Individual
taxpayers*
In some cases, of course, th ere w ill have been
paid during the taxable year ?aore than an In d iv id u al's to ta l
tax lia b ility *
In a case of th is s o rt where the retu rn
f ile d indicates such an overpayment, a new provision of the
law allows the taxpayer to use as a c re d it to discharge
h is l i a b i l i t y fo r estim ated tax shown on the declaration
f ile d a t the same time as the re tu rn , the amount of the
overpayment*
** 20 •
on o&ch q u arterly installm ent*
His a c tu a l gross tax
lia b ility * however, comes to $1200, and he a c tu a lly has
withheld from him $700* He would pay on h is re tu rn f ile d
a f te r the close of the taxable year in addition to the $300,
by Whiah Ms estim ated ta x and payments by withholding
during the taxable year f e l l sh o rt of Me actu al tax
l i a b i l i t y , the sum of $18, th a t being 6 pereent of the $300
'0
differen ce.
There a re , of course, additional sa n c tions
fo r the fa ilu re to f i l e a d eclaratio n and fo r f a ilu re to
pay any installm ent of estimated ta x .
At the time of f ilin g retu rn s a f te r the close of the
taxable year any balance of tax l i a b i l i t y not paid cu rren tly
during the taxable year must bo paid in f u l l and the
installm ent p riv ileg e
to ta l income and v ic to ry tax l i a b i l i t y before c re d it for
amounts withheld a t the source — there sh all he added to
the tax fo r which he is lia b le an amount equal to § percent
of the difference between the actu al gross tax l i a b i l i t y and
the estim ated tax plus withholding c re d it or the amount by
which SO percent of his gross tax l i a b i l i t y exceeds the
estimated tax plus withholding c re d its , whichever is the
lesser#
In the case of farmers exercising the option to
-1
f i l e year-end d eclarations, the tolerance lim it fo r accurate I
estim ation of the to ta l tax l i a b i l i t y i s 66-3/3 percent*
For example* a sa la rie d person estim ates th a t his to ta l j
■
*
,
*
tax l i a b i l i t y fo r the year w ill amount to $800.
He estimate!
th a t there w ill be withheld from him $600 and he f i l e s a
declaratio n showing an estimated tax of $200, paying $50
on
retu rn s of the spouses sad say payments on account of
estimated tax made by husband or wife in a jo in t declare**
i
tio n m y be treated as payments on account of the tax lia b ility
of e ith e r the husband or the
be divided between
them in any manner they see f it *
Of course, no system of income tax co llectio n would be
found workable i f th ere were no sanctions fo r i t s enforcement# j
Accordingly, as you would expect, there are sanctions which
w ill insure th a t individual income taxpayers w ill make a
d ilig e n t e ffo rt to estimate th e ir tax and to pay i t during
the taxable year as th e ir income i s earned*
The law provides
th a t idiere the estimated tax of a taxpayer together w ith the
amounts a ctu ally w ithheld a t the source f a l l s short of 80
percent of Ms actual gross tax l i a b i l i t y — th a t i s , his
to ta l
a declaration only i f ho e ith e r had in the p rio r ys&r, or'
expects to have in the current year* stages In excess of
$2700 or $3500 depending on whether he i s single or married#
Thus instead of requiring declarations from a l l of the
estimated fo rty -fo u r m illio n taxpayers of the country*
declarations w ill be required from only fourteen million#
-
For persons whose income from sources other than wages
subject to withholding exceeds $100, declarations are
required only from those whose gross income was s u ffic ie n t
fo r the preceding taxable year, or is expected to be sufficient
fo r the current taxable y ear, to req u ire the f i l i n g of an
and wives to make a jo in t declaration but an e le c tio n to do
so w ill not bo binding fo r the purposes of f ilin g ths nm w t
returns
th« option of f il in g hi* d eclaratio n on or beforo the
-
f if te e n th day of the t m l f t h month of the taxable y ear.
*] *
j.
V■
/, ’
'
' - ' ’•, -: ' \ ;
At thi* time he is required to pay the to ta l amount of
th* estimated tax shown on the d eclaratio n .
Let ms point out th a t i t w ill not be necessary fo r
a l l taxpayers to f i l e a d eclaratio n .
Persons who are
p rin c ip a lly wage earners earning le ss than $2700 per year
in the case of a single person and $3500 in the case of a
married person and h is spouse w ill have most of th e ir
income tax l i a b i l i t i e s completely paid through th e w ith
holding process*
To elim inate unnecessary paperwork fo r
such persons, th erefo re, ths law proscribes in ths case
of a person haring a gross income of $100 or le s s from
sources not subject to w ithholding, he w ill hare to f i l e
a d eclaratio n
- IS
of the year and finding yourselves required to make extra
heavy payments la te r in the year.
But i f th a t unexpected
fee should come in la te r in the year, you have u n til December
15th to rev ise your o rig in al estim ate of income and consequent
tax l i a b i l i t y .
The law provides th a t, whenever an amended
declaration is f ile d , the q u arterly payment of estim ated tax
which accompanies the amended declaration and any subsequent
payments not yet due sh a ll be adjusted in amount to r e f le c t
the change in the amount of estim ated ta x .
The law gives special recognition to the farmer in
connection w ith tills requirement fo r f il in g of a declaration
and paying estimated tax .
A person who comes w ithin the
d e fin itio n of farmer - th a t i s , a person who derives a t
Jlsast 80 percent of h is gross income from fam in g ~ i s given /
the option
well be turning over in your minds the idea of asking me
whether I have any recommendation as to the p a rtic u la r
type of c ry sta l b a ll which you can use*
*
I concede th a t
#
0
the problem may* in some cases* be a d if f ic u lt one*
esp ecially fo r persons in your s itu a tio n but there are a
few suggestions which may be of help to you#
Perhaps your
experience over a number of years w ill indicate to you
th a t your p rio r y ears1 income adjusted fo r any sp ecial
circumstances which you may be able to foresee w ill form
a foundation fo r your estimate*
Also* you w ill reoognise
the f a c t th a t making a conscientious attempt to estim ate
as nearly accurately as possible* you may obviate the
n ecessity of making amended declarations in the course
of the year
SI
«* SKI
tw amounts*
<■»
This difference w ill c o n stitu te h is estimated
tax fo r the year*
At the time of f il in g these d eclarations,
oue-fourth of the estimated tax shown on the declaration
w ill he paid and in the event th a t circumstances occurring
la te r in the year do not operate to make the o rig in a l
estim ate in c o rrec t, an ad d itio n al one-fourth of the estimated
tax w ill he paid on or before the f if te e n th day of the la s t
month of « # k # # the remaining quarters of the taxable year*
Where la te r circumstances show the o rig in al estim ate to he
inaccurate, he i t e ith e r too high or too low, an opportunity
i s given to the taxpayer to f i l e an amended d eclaratio n ,
once in each quarter of the taxable year#
As to how to make an accurate estim ate of your tax
l i a b i l i t y on March 15th of any year, I imagine th a t you may
w ell be
Application*
I am going to describe th is system of current
tax payment, f i r s t in i t s s e ttin g as a permanent featu re
III
♦
of our income tax law.
The sp ecial provisions w ith respect
to the year 1943 i s which the tra n s itio n i s a&fie, I w ill
discuss l a te r .
As a y e a r-la , year-out system, i t i s contemplated th a t
each individual income taxpayer(other than an e s ta te , tr u s t t
or non-resident a lie n whose wages are not subject to with
holding) who f u l f i l l s the requirements fo r the f il in g of
declarations w ill f i l e a t the time of f il in g h is income tax
r e tw a fo r the preceding taxable year, a declaratio n showing
the amount of h is estimated to ta l tax l i a b i l i t y fo r the
current year, the amount of tax which ha estim ates w ill be
withheld a t the source and the difference between these
two amounts.
• |||j| m
8.
/
Current Payment of fax Wat Collected a t Source
Since withholding applies only to wages and not to
a l l types of wages and since there is collected through
withholding only the normal tax, the surtax a t the f i r s t
bracket ra te and the n et v icto ry ta x , ad d itio n al changes
in our tax co llectio n system are necessary to insure th a t
a l l taxpayers are completely cu rren t.
What I am about to
describe to you is the system devised under the Current
fax Payment Act fo r persons whoa* wages exceed the f i r s t
surtax bracket and fo r persons who are in the s itu a tio n of
most of you, th a t i s , those who are individual entrepreneurs,
professional men and the lik e , w ith resp ect to whose income
the system of co llectio n of taxes by withholding has no
application •
takes Into account the individual employee's family s ta tu s ,
splendid cooperative s p i r i t exemplified by these
businessmen eo n stitu tes a fin e example of the American
enthusiasm fo r g ettin g large tasks accomplished.
return w ill be f ile d .
The amounts collected in th is la s t
month w ill be rem itted to the C ollector w ith the return*
These are the highlights of the d e ta ils of the new with**
I
holding technique w hichjit i s contemplated, w ill in i t s e l f
make some 70 percent of the taxpayers of the country sub
s ta n tia lly fu lly current in th e ir income tax l i a b i l i t i e s to
the Government*
These taxpayers w ill have only minor year-end I
adjustments by way of tax payment or refund to be made a t the
time of f ilin g th e ir annual re tu rn s.
In developing th is
technique, the Treasury and the Congress were able to u tilis e
many helpful suggestions which came from employers and th e ir
representatives upon whom the burden of c o lle c tio n a t the sours* &
is necessarily cast*
These suggestions were p rin c ip a lly useful
to reduce the complications of the withholding system which
takes Into
Government and to employers.
Large employers whose collection
of taxes withheld a t the source from th e ir employees would run ]
into m illions of d o llars each quarter of the year are reluctant!
to accept the ris k of holding these funds fo r the quarterly
period a t the end of which returns are o rd in arily f ile d .
By a
system of current monthly or more frequent deposit of funds in
United S tates d ep o sitaries not only does the ris k of lo ss becon
transferred from the employer to the Government but also the
Treasury is more quickly able to u ti lis e the funds flowing in
from c o llectio n a t the source * The in stru c tio n s to employers
which have already been prepared and are now being d istrib u ted
carry the statement th a t I t w ill be the duty of every employer
who withhold more than $100 during the month to pay the withhsH
amounts to a depositary w ithin ten days a f te r the close of each
month, except fo r the la s t month of the quarter fo r which the
retu rn will
information retu rn in lie u of the form 1099 now required to
be file d by employers,
Under the lew, as passed by the
Congress, the requirement of the employer to re tu rn and pay
over the tax withheld is general in language and follows the
provisions of the law with respect to Social Security taxes.
For the present tim e, a t le a s t, i t i s contemplated th a t the
Commissioner’s regulations w ill c a l l fo r retu rn of the tax a t
quarterly in terv ale as in the ease of Social Security taxes.
k new feature ie one under which the Secretary of the
Treasury may authorize d ep o sitaries and fin a n c ia l agents of
the United S tates to accept deposits o f taxes withheld from
employee* from time to time and may prescribe the conditions
under sdiich the re c e ip t of euch taxes by authorised depot!tsrin
sh a ll be treated as payment of the taxes by the c o lle c to rs .
This provision is a vary necessary and helpful one/both to ths
Government
by th# p reciet method of subtraction of tha exemption ml,
m ultiplying by the percentage figure in the ease of each
employee.
The withholding tab les aet out in the law covet*
the common payroll periods used in business organisations,
and a determ ination of the amount to be withheld can be q u id
ascertained by finding the proper column and lin e on the
applicable table for the employee w ith the withholding
exemption stated in the c e r tif ic a te f ile d by him.
At the end
of every year and even before th a t tim e, should an employee
cease h is employment with a p a rtic u la r employer, the employer
i s required to fu rn ish to each employee a re c e ip t showing the
wages paid during the calendar year and the amount of tax
withheld with respect to h is wages.
A
duplicate of th is
re c e ip t f ile d with the Commissioner w ill c o n stitu te the
information
~ IB •
information with reepect to the withholding exemption.
T3» law provides th a t eaployeee e h e li f i l e new c e r tif ic a te s
in the event of ehengea in atntuaj i t is d e sira b le , in order
th a t withholding in the case of an employee whose s ta tu s
changes w ill closely approximate h is tax l i a b i l i t y , fo r
employers to give e ffe c t to these new c e r tif ic a te s as soon
as p o ssib le, and they may do so immediately.
They are required
however, to give e ffe c t to these changes only twice a y ear, on
January 1 st or July 1 s t.
Such a requirement i s necessary in
the case of m ay very large employers la order th a t th e ir
p ay ro ll systems w ill not be constantly disrupted.
Employers are given the option to use ta b les somewhat
sim ilar to those employed in connection w ith the v ic to ry tex
to determine the amount to be w ithheld, ra th e r than computing
by the
** 12 m
mployee, with. M s employer, s e ttin g fo rth h ie family statu e
and the amount of the withholding exemption which he claim s.
In the ease of married persons, the withholding exemption may
be divided between the husband ft* the wife or may be claimed
% o ith e r one.
The Bureau of In te rn a l Revenue has already
prepared forms fo r these c e r tif ic a te s and has made fee®
available to the public fo r use by employers e ith e r on the
forms furnished through the C o llecto rs' o ffic e s or on forms
reproduced by the employer to f i t h is p a rtic u la r accounting
machinery.
Employers may re ly upon the information furnished
in the withholding exemption c e rtific a te s and w ill be under
no duty to question the correctness of the statements con
tained in the c e r tif ic a te s .
P enalties are imposed in the
case of an employee who furnishes false or fraudulent
information
of ttts jear*
Because the current c re d it available through
debt repayment, payment of insurance premiums, and baud
purchases w ill be claimed by most taxpayers, i t seemed w iser
to raise® the rate of victory tax withholding to 3 percent
which w ill more nearly approximate the actual tax l i a b i l i t y
!l5
of these persons.
Ih erefo re, in the oase of these married
S
peraons withholding w ill be required a t the 3 percent rate
t
but not a t the -20 percent r a te .
Beginning w ith the f i r s t p ay ro ll period commencing on
or a f te r July 1 st of th is y ear, i t w ill be the duty o f every
employer to deduct and withhold the amount required under the
new Act.
The determination of the amount required to be
deducted and withheld w ill be based upon the withholding
exemption c e r tif ic a te which ia required to be f ile d by
employee,
io
to a 6 percent normal tax , and a 18 poreant su rtax , and a
not 8 poreant victory tax over tha victory tax exemption.
Those paroantagsa to ta l 22 percent.
Withholding, however,
is required only a t tha ra ta of 20 percent.
Thus a 2 percent
leeway for average deductions of the taxpayer i s taken into
account.
F urther, the family s ta tu s withholding; exemptions
for the most p a rt are s lig h tly la rg e r than the income tax
exemption applicable to the p a rtic u la r taxpayer.
There are some married in d iv id u als, however, who although
not lia b le for income tax because they earn le s s than $1,200
in any year are nevertheless lia b le fo r v icto ry tax on amounts
earned over and above the annual v ic to ry tax exemption of $624.
These persons have been subject to withholding a t the ra te of
5 percent above the v icto ry tax exemption since January 1st
of th is
** If •»
is an arith m etical r a tio between the figures which makes
them p a rtic u la rly useful in applying the system o f w ith
holding.
For in stan ce, where accounting machinery is used,
the so rtin g operations are considerably reduced by having
the exemption fo r a married person claiming h a lf the personal
exemption for withholding but haring no dependents the same
as th a t fo r a single person, or a married person claiming
h a lf the exemption but haring two dependents the same as
th a t of a married person claiming a l l of the exemption and
haring no dependents.
I t must be recognised th a t the c o lle c tio n of ineome
taxes at the source through withholding w ill, a t h o st, only
approximate the actu al Ineome tax l i a b i l i t y o f a p a rtic u la r
taxpayer.
Srery taxpayer lia b le fo r income tax i s subject
to a
and an ad d itio n al
a added -.to the/exemption fop each
dependant of the individual employee except the f i r a t
dependant in the case of a head of a fam ily.
In the case
I
of married persons where both spouses are employed, the
exemption may be divided by each spouse claiming h a lf of
the exemption, or e ith e r the husband or the wife m y claim
the e n tire exemption and the other spouse claim none.
It
should be noted, however, th a t the manner o f claiming the
withholding exemption w ill have no binding e ffe c t when i t
conies to the d ivision o f personal exemption which the spouses
may wish to adopt in f ilin g their retu rn s fo r the year.
You w ill read ily see th a t these fig u res are not the
exact fig u res provided with respect to the personal exemption
for income ta x , but you w ill also read ily discover th a t there
is an
j■
* 7 alarmed a t the prospect of haying 20 percent of th e ir
s a la rie s withheld from them.
Much of th is alarm a ris e s
from an inaccurate conception of the withholding provisions.
For the most p a rt those persons f a i l to recognise th a t with
holding does not re s u lt in the im position o f any new tax hut
is merely a convenient method of paying the tax l i a b i l i t y
which existing law imposes* .
In addition* these same people f a i l to re a lis e th a t
20 percent withholding is applicable only to the balance
of the wages over and above the family sta tu s withholding
exemption of the p a rtic u la r employee*
For a single person
with no dependents* the annual family sta tu s withholding
exemption is $624*
For a married person or a head of the
family, the family statu s withholding exemption is $1,248
and an
|| *»
Instrum entality and services performed while outside of
the United States* where a major p a rt of the services fo r
an employer during the calendar year i s to be performed
outside of the continental lim its , are also excluded.
In
th is regard, however, the law s p e c ific a lly s ta te s th a t
services performed on or in connection with an American
v e sse l, or as an employee of the War Shipping A dm inistration,
are not services performed outside the United S ta te s .
A
fu rth e r exception, new to w ithholding, is made in the case
of remuneration paid fo r services performed by a m inister
o f the gospel.
From the le tte r s we have received a t the Treasury while
th is Act m s under consideration, I know th a t many persons,
p a rtic u la rly in the lower wage le v e ls , have been g reatly
alarmed a t
employes relatio n sh ip as distinguished from the relatio n sh ip
of independent co n tracto rs.
Then even where th is relationship
e x is ts , wage payments in c e rta in enumerated types of occupa*
tio as a r t excepted from the withholding requirement*
The
three main peacetime groups to which th is exception applies
are (1) a g ric u ltu ra l lab o rers, (2) domestic servants in
private homes,college clubs or f r a te r n i tie s , and (3) casual
laborers not engaged in the course of the employer’s trade
or business*
In ad d itio n , the service pay of members of the
m ilitary or naval forces is excluded from the withholding
provisions*
Services performed for a foreign government or
ins trum entali ty
a s e t of provisions sp ecially enacted fo r th a t purpose a»
p a rt of Chapter I of the In tern al Revenue Coda.
Our meager
adm inistrative experience w ith th a t tax hat indicated tha
d e s ira b ility of a more fle x ib le system, i&ich w ill have as
i t s ultim ate goal an in teg ratio n between income tax collection I
a t the source and Social S ecurity co lle c tio n procedure«
Convenience fo r both employer and the Government w ill be
served by the eventual achievement of th is goal.
For th a t
reason, th erefo re, i t was suggested by the Treasury, and
agreed to by the Congress, th a t the income tax withholding
provisions be removed from Chapter I of the In te rn a l Revenue
Code and be made a new subchapter under Chapter 9 of the
Code re la tin g to employment taxee.
The duty to withhold an amount for income and v icto ry
taxes
■
Second, there is the p a rt o f the Act which Scale
with the permanent eyetea of cu rren t payment of income tax
l i a b i l i t i e s not co llected by the withholding process.
Third, there are the provisions applicable only to th is year
and necessary to achieve the tra n s itio n from the delayed
payment to the current payment system.
And fo u rth , the Act
includes various miscellaneous provisions among which are
those giving special tax treatm ent to members of the armed
fo rces.
f* Withholding
Tou a r t a l l fam iliar with the technique of co llectio n
of taxes by withholding to the extent th a t th is tschniqus
has been employed and i s being smploysd in the co llectio n of
Social Security and Victory tax l i a b i l i t y .
As you know,
withholding under the Victory tax was accomplished through
a set
likewise bo doubt m n in some .measure of tho problems
involved in changing to the new system.
Let me emphasize
th a t i t was only th is tra n s itio n s itu a tio n whioh caused
the smoke and f ir e which hare been present on the congres
sional battlegrounds during the la s t few months.
For the
reason th a t these p o lic ie s and problems are known to you
and are now a m atter of h is to ry , I s h a ll devote myself on
th is occasion to giving you something more of the how of
current tax payment, om itting any of the arguments on the
why side of the problem.
For the cake of discussion the Current Tax Payment Act
of 1943 Is d iv isib le in to four p a rts .
F ir s t, there are the
provisions re la tin g to the cu rren t c o lle c tio n of income and
.’ l
v icto ry
through deduction end withholding a t the source
on wages.
THE CURRENT TAX PAYMENT ACT
As you know, the Current Tax Payment A ct, recen tly
enacted by the Congress and signed by the P resid en t, bids
f a i r to revolutionise the methods of co llectio n of the
personal income tax in th is country*
I t seems e n tire ly
f it tin g th a t you, as members of the Bar of P hiladelphia,
the b irth p lace of so many of the revolutionary ideas of the
p a s t, should desire to be among the f i r s t to become conversant
witn the new tax le g is la tio n which w ill so soon become a part
of our n ational structure*
|
Tou are aware of the p o lic ie s and problems which dictated
the change from our present delayed system of c o lle c tio n of
income taxes to the new current co lle c tio n plan.
You are
likewise
ADMINISTRATIVE RESPONSIBILITIES OF DIVISION HEADS
AND SECTION CHIEFS IN FOREIGN FUNDS CONTROL
I
(a) £ Introduction
(b)
Wie Responsibility of All Persons in the Public Service
in a Democracy
D i v i s S n bllitieS ln Rslation t0 the Administrative Services
III
Organization and Administrative Planning
IV
The Budget Process
The Classification of Positions
VI
Recruitment and Placement of Personnel
vxi
Maintenance of Standards of Performances
VIII
Employee Training
IX
Employee Relations;
X
The Use of Office Services
XI
The Application of Machine Techniques
XII
The Application of Accounting Techniques
XIII
Summary;
Efficiency Ratings
The Place of Employee Organizations
The Administrative Process As A Whole
TpjfeASTJRY DE^ARYMEKT
Washington
""fu i '
■■Defor^'
(The fo llo w in g address by Randolph E . P a u l, General Counsel
fo r th e Treasury, b efo re th e -P h ila d e lp h ia Bar A s s o c ia tio n ,
at th e Midday Club, i s scheduled fo r d e liv e r y a t 8 .0 0 PM .
E astern War T in e. Monday. June 14. 1943«^acad io
wfeeJ^aae
TREASURY DEPARTMENT
W ashington
(The fo llo w in g a d d r e s s by R andolph E. P a u l, G e n e ra l C ounsel f o r
th e T re a s u ry , b e f o r e th e P h ila d e lp h i a B ar A s s o c ia tio n , a t th e
Midday C lub, i s sc h e d u le d f o r d e l i v e r y a t 2}00 P,M. E a s te r n War
Time, Monday, Ju n e lH, 19^3*?
THE CURRENT TAX PAYMENT ACT
!♦
I n tr o d u c t io n
As you know, th e C u rre n t Tax payment A ct, r e c e n t l y e n a c te d by
th e C ongress and s ig n e d b y th e p r e s i d e n t , b id s f a i r to r e v o l u t i o n i z e
th e m ethods o f c o l l e c t i o n o f t h e p e r s o n a l income ta x in t h i s c o u n try *
I t seems e n t i r e l y f i t t i n g t h a t you, a s members o f th e B ar o f P h ila d e lp h i a ,
th e b i r t h p l a c e o f so many o f th e r e v o l u t i o n a r y id e a s o f th e p a s t , sh o u ld
d e s i r e to be among th e f i r s t to .b eco m e c o n v e rs a n t w ith th e new ta x
l e g i s l a t i o n w hich w i l l so soon become a p a r t o f o u r n a t i o n a l s t r u c t u r e .
You a r e aw are o f th e p o l i c i e s and p ro b lem s w hich d i c t a t e d th e
change from o u r p r e s e n t d e la y e d system o f c o l l e c t i o n o f income ta x e s
to th e new c u r r e n t c o l l e c t i o n plan* You a r e lik e w is e no d o u b t aw are
iri some m easu re o f th e p ro b lem s in v o lv e d in ch an g in g to th e new sy ste m .
L et me em phasize t h a t i t was o n ly t h i s t r a n s i t i o n s i t u a t i o n w hich cau sed
th e smoke and f i r e w hich have been p r e s e n t on th e c o n g r e s s io n a l b a t t l e
g ro u n d s d u r in g th e l a s t few m o n th s. F o r th e r e a s o n t h a t th e s e p o l i c i e s
and pro b lem s a r e known to you and a r e now a m a tte r o f h i s t o r y , I s h a l l
d e v o te m y s e lf on t h i s o c c a s io n to g iv in g you so m eth in g more o f th e how
o f c u r r e n t t a x paym ent, o m ittin g any o f th e arg u m en ts on th e why s id e
o f th e p ro b lem .
1
F o r th e sak e o f d is c u s s io n th e C u rre n t Tax Payment A ct o f 19^3 i s
d i v i s i b l e i n t o f o u r p a r ts * F i r s t , t h e r e a r e th e p r o v is io n s r e l a t i n g
to th e c u r r e n t c o l l e c t i o n o f income and v i c t o r y ta x e s th ro u g h d e d u c tio n
and w ith h o ld in g a t th e s o u rc e on w ages. Second, th e r e i s th e p a r t o f
th e A ct w hich d e a l s w ith th e perm anent sy stem o f c u r r e n t payment o f
income ta x l i a b i l i t i e s n o t c o l l e c t e d by th e w ith h o ld in g p r o c e s s .
T h ird , th e r e a r e th e p r o v is io n s a p p l ic a b l e o n ly to t h i s y e a r and n e c
e s s a r y to a c h ie v e th e t r a n s i t i o n from th e d e la y e d payment to th e c u r r e n t
payment sy stem . And f o u r t h , th e A ct in c lu d e s v a r io u s m is c e lla n e o u s
p r o v is io n s among w hich a r e th o s e g iv in g s p e c i a l ta x tr e a tm e n t to members
o f th e armed f o r c e s .
37-.4
2*
W ith h o ld in g
You a r e a l l f a m i l i a r w ith th e te c h n iq u e o f c o l i n f i r m
v
w ith h o M in g to th e « t « t t h a t t h i s t e o h n i ^ e L s h e ^ ^ l o y e d S
X
l i a h f n e t P l °y ! “ ^
c o U s o t l a “ ° f S o c ia l S e c u r it y and V ic to iy ta x
c l i s h e d t h r o u L 7«U
Witl^ o l4 in S u n d er th e V ic to ry ta x was accom as 2 r t S n h » V
r o f p r o v is io n s s p e c i a l l y e n a c te d f o r t h a t p u rp o se
t P!
of Ch p t
1 o f th e I n t e r n a l E evenue Code. Our m eager a d m in is r : i : ef
f
en0e r l t h t h a t t a x t o s t o u t e d th e d e s i r a b i l i t y o f
f y s te m ’ " h ic h " i l l h av e a s i t s u l t i m a t e g o a l an i n t e
g r a t i o n betw een incom e t a x c o l l e c t i o n a t th e s o u rc e and S o c ia l 'S e o n ritv
* * •» »
z , v : z t s
" - 1 “ !®r 4 by th e e v e n tu a l ach iev em en t o f t h i s g o a l . F o r t h a t
re a s o n , t h e r e f o r e , i t was s u g g e s te d hy t h e T r e a s u r y f and a g re e d to Vv
f M m ' c S i r , Tt i ? t t i h e Ti f 00'96, taX w ith h o ld ln « P r o v is io n s he rem oved
u X r fiS itL o L
Code and he made a new s u b c h a p te r
u n d e r C h a p te r 9 o f th e Code r e l a t i n g to employment t a x e s . .
dut( . t0 w^ h h o l d an amount f o r income and v i c t o r y ta x e s i s n o t
im posed on a l l p e rs o n s m aking paym ents o f co m p en satio n f o r p e r s o n a l
s e r v i c e s r e n d e r e d , F i r s t , t h e r e m ust e x i s t , a s in th e S o c ia l S t y
ta x , t h e em p lo y er-em p lo y ee r e l a t i o n s h i p a s d i s t i n g u i s h e d from th e r e * •
l a t i o n s h i p o f in d e p e n d e n t c o n t r a c t o r s . Then even w here t h i s r e l a t i o n s h i p
e x c ^ /f f
Q B r W n en u m erated ty p e s o f o c c u p a tio n s a r e
e x c e p te d from th e w ith h o ld in g r e q u ir e m e n t. The t h r e e m ain p e a c e tim e
g ro u p s to w hich t h i s e x c e p tio n a p p l i e s a r e ( 1 ) a g r i c u l t u r a l l a b o r e r s ,
( 2 ) d o m e stic s e r v a n ts i n p r i v a t e homes, c o l le g e c lu b s o r f r a t e r n i t i e s ,
and ( 3 ) c a s u a l l a b o r e r s n o t engaged i n th e c o u rs e o f th e em ployer»s
r a e o r b u s in e s s ,
in a d d i t i o n , th e s e r v ic e pay o f members o f th e
m i l i t a r y o r n a v a l f o r c e s i s e x c lu d e d from th e w ith h o ld in g p r o v i s i o n s .
S e rv ic e s p erfo rm e d f o r a f o r e ig n governm ent or i n s t r u m e n t a l i t y and
s e r v ic e s p erfo rm e d , w h ile o u ts id e o f th e U n ite d S t a t e s , w here a m ajo r
p a r t o f th e s e r v i c e s f o r an em ployer d u r in g th e c a le n d a r y e a r i s to be
p erfo rm ed o u ts id e o f th e c o n t i n e n t a l .lim its , a r e a ls o e x c lu d e d . I n t h i s
r e g a r d , how ever, th e law s p e c i f i c a l l y s t a t e s t h a t s e r v i c e s p erfo rm e d on
o r in ^ c o n n e c tio n w ith an .American v e s s e l , o r a s an em ployee o f th e War
S h ip p in g A d m in is tr a tio n , a r e n o t s e r v ic e s p erfo rm e d o u ts id e th e U n ite d
S t a t e s , a f u r t h e r e x c e p tio n , new to w ith h o ld in g , i s made in th e c a se
o f re m u n e ra tio n p a id f o r s e r v i c e s p erfo rm e d by a m i n i s t e r o f th e g o s p e l.
From th e l e t t e r s we have r e c e i v e d 'a t th e T re a su ry w h ile t h i s A ct
was u n d e r c o n s i d e r a t i o n , I know t h a t many p e r s o n s , p a r t i c u l a r l y in th e
low er wage l e v e l s , have been g r e a t l y a la rm e d a t th e p r o s p e c t o f h a v in g
20 p e r c e n t o f t h e i r s a l a r i e s w ith h e ld from them . Much o f t h i s a la rm
a r i s e s from an i n a c c u r a te c o n c e p tio n o f th e w ith h o ld in g p r o v i s i o n s .
F o r th e m ost p a r t th e s e p e rs o n s f a i l to re c o g n iz e t h a t w ith h o ld in g does
n o t r e s u l t in ^ th e im p o s itio n o f any new ta x b u t i s m e re ly a c o n v e n ie n t
method o f p a y in g th e ta x l i a b i l i t y w hich e x i s t i n g law im p o se s.
In a d d i t i o n , th e s e same p e o p le f a i l to r e a l i z e t h a t ,20 p e r c e n t
w ith h o ld in g i s a p p l i c a b l e o n ly to th e b a la n c e o f th e wages o v e r and
aoove th e f a m ily s t a t u s w ith h o ld in g ex em p tio n o f th e p a r t i c u l a r em ployee.
F o r a s in g le p e rs o n w ith no d e p e n d e n ts , th e a n n u a l f a m ily s t a t u s w ith
h o ld in g exem ption i s $ 6 2^, -For a m a rrie d p e rs o n o r a h ead o f th e f a m ily ,
th e f a m ily s t a t u s w ith h o ld in g ex em ption i s $ 1,248 and an a d d i t i o n a l $312
i s added to th e ex em p tio n f o r each d ep en d en t o f th e i n d i v i d u a l em ployee
e x c e p t th e f i r s t d ep en d en t i n th e c a se o f a head o f a f a m ily . I n th e
case o f m a rrie d p e r s o n s w here b o th s p o u se s a r e em ployed, th e ex em p tio n
may be d iv id e d by each sp o u se c la im in g h a l f o f th e ex em p tio n , o r e i t h e r
th e husband o r th e w ife may c la im th e e n t i r e ex em p tio n and th e o t h e r
spouse c la im n o n e . I t s h o u ld be n o te d , h o w ev er, t h a t th e m anner o f c la im
in g th e w ith h o ld in g ex em ption w i l l hav e no b in d in g e f f e c t when i t comes to
th e d i v i s i o n o f p e r s o n a l ex em p tio n w hich th e s p o u se s may w ish to a d o p t
in f i l i n g t h e i r r e t u r n s f o r th e y e a r .
You w i l l r e a d i l y s e e t h a t th e s e f i g u r e s a r e n o t t h e e x a c t f i g u r e s
p ro v id e d w ith r e s p e c t to th e p e r s o n a l ex em p tio n f o r income ta x , b u t you
w i l l a l s o r e a d i l y d is c o v e r t h a t t h e r e i s an a r i t h m e t i c a l r a t i o : , b etw een
th e f i g u r e s w hich makes them p a r t i c u l a r l y u s e f u l i n a p p ly in g th e sy stem
o f w ith h o ld in g . For i n s t a n c e , w here a c c o u n tin g m a c h in e ry i s u s e d , th e
s o r t i n g o p e r a t io n s a r e c o n s id e r a b ly re d u c e d b y h a v in g th e ex em p tio n
f o r a m a rrie d p e rs o n c la im in g h a l f th e p e r s o n a l ex em ption f o r w ith h o ld
in g b u t h av in g no d ep en d e n ts th e same as t h a t f o r a s i n g l e p e r s o n , o r
a m a rrie d p e rs o n c la im in g h a l f th e ex em p tio n b u t h a v in g two d e p en d e n ts
the^ same as t h a t o f a m a r r ie d p e rs o n c la im in g a l l o f th e exem ption and
h a v in g no d e p e n d e n ts .
I t m ust be r e c o g n iz e d t h a t t h e c o l l e c t i o n o f income ta x e s a t th e
so u rc e th ro u g h w ith h o ld in g w i l l , a t b e s t , o n ly a p p ro x im a te th e a c t u a l
income ta x l i a b i l i t y o f a p a r t i c u l a r ta x p a y e r . E v ery ta x p a y e r l i a b l e
f o r income ta x i s s u b j e c t to a 6 p e r c e n t n o rm a l t a x , an d a 13 p e r c e n t
s u r ta x , and a n e t 3 p e r c e n t v i c t o r y ta x Over th e v i c t o r y t a x ex em p tio n .
These p e r c e n ta g e s t o t a l 22 p e r c e n t . W ith h o ld in g , how ever, i s r e q u ir e d
o n ly a t th e r a t e o f 20 p e r c e n t . Thus a 2 p e r c e n t leew ay f o r a v e ra g e
d e d u c tio n s o f th e ta x p a y e r i s ta k e n i n t o a c c o u n t. F u r th e r , th e f a m ily
s t a t u s w ith h o ld in g ex em p tio n s f o r th e m o st p a r t a r e s l i g h t l y l a r g e r th a n
th e income t a x ex em p tio n a p p l ic a b l e to th e p a r t i c u l a r ta x p a y e r .
There a r e some m a r r ie d i n d i v i d u a l s , how ever, who a lth o u g h u n o t l i a b l e
f o r income ta x b eca u se t h e y e a rn l e s s th a n $ 1 ,2 0 0 in any y e a r a r e n e v e r
t h e l e s s l i a b l e f o r v i c t o r y t a x on am ounts e a rn e d o v e r and above th e
a n n u al v i c t o r y ta x exem ption o f $624» These p e rs o n s have been s u b j e c t
to "w ithholding a t th e r a t e o f 5 p e r c e n t above th e v i c t o r y t a x exem ption
s in c e J a n u a ry 1 s t o f t h i s y e a r . B ecause th e c u r r e n t c r e d i t av a l Table
th ro u g h d e b t re p a y m e n t, paym ent o f in s u r a n c e , prem ium s, and bond p u rc h a s e s
w i l l be cla im e d by m ost ta x p a y e r s ,' i t seem ed w is e r to re d u c e th e r a t e o f
v i c t o r y ta x w ith h o ld in g to 3 p e r c e n t w hich w i l l m ore n e a r l y a p p ro x im ate
th e a c tu a l^ ta x l i a b i l i t y o f th e s e p e r s o n s .
T h e re fo re , in th e c a se o f
th e s e m a rrie d p e r s o n s w ith h o ld in g w i l l be r e q u ir e d a t th e 3 p e r c e n t r a t e
b u t n o t a t th e 20 p e r c e n t r a t e .
B eg in n in g w ith th e f i r s t p a y r o l l p e r io d commencing on o r - a f t e r
J u ly 1 s t o f t h i s y e a r , i t w i l l be th e d u ty o f e v e ry em ployer t o d e d u c t
and w ith h o ld th e am ount r e q u i r e d u n d er th e new A ct,
The d e te r m in a tio n
o f th e amount r e q u ir e d to be d e d u c te d and w ith h e ld w i l l . b e b a s e d upon
th e w ith h o ld in g exem ption c e r t i f i c a t e w hich i s r e q u i r e d to be f i l e d by
eac h em ployee, w ith h is em p lo y er, s e t t i n g f o r t h h i s f a m ily s t a t u s and
th e amount o f th e w ith h o ld in g exem ption w hich he c la im s » In th e c a se
o f m a rrie d p e r s o n s , th e w ith h o ld in g ex em p tio n may he d iv id e d betw een
th e husband and th e w ife o r may be c la im e d by e i t h e r o n e, The B ureau
o f I n t e r n a l Revenue h a s a lr e a d y p re p a re d form s f o r th e s e c e r t i f i c a t e s
and h a s made them a v a i l a b l e to t h e p u b lic f o r u s e by em p lo y ers e i t h e r
on th e form s f u r n is h e d th ro u g h th e C o l l e c t o r s ' o f f i c e s o r on form s
re p ro d u c e d by th e em ployer to f i t h i s p a r t i c u l a r a c c o u n tin g m a c h in e ry ,
E m ployers may r e l y upon th e in f o r m a tio n f u r n is h e d in th e w ith h o ld in g
exem ptio n c e r t i f i c a t e s and w i l l be u n d e r no d u ty to q u e s tio n th e
c o r r e c t n e s s o f th e s ta te m e n ts c o n ta in e d i n th e c e r t i f i c a t e s ,
P e n a l t i e s a r e im posed in th e c a s e o f an em ployee who f u r n is h e s
f a l s e o r f r a u d u le n t in f o r m a tio n w ith r e s p e c t to th e w ith h o ld in g
ex em p tio n . The law p ro v id e s t h a t em ployees s h a l l f i l e new c e r t i f i
c a t e s in th e e v e n t o f ch an g es i n s t a t u s ; i t i s d e s i r a b l e , in o rd e r
t h a t w ith h o ld in g i n th e c a s e o f an em ployee whose s t a t u s ch an g es w i l l
c l o s e l y a p p ro x im a te h i s t a x l i a b i l i t y , f o r em p lo y ers to g iv e e f f e c t to
th e s e new c e r t i f i c a t e s a s soon a s p o s s i b l e , and th e y may do so immedi
a t e l y , They a r e r e q u ir e d , how ever, to g iv e e f f e c t to th e s e changes
o n ly tw ic e a y e a r , on J a n u a r y 1 s t o r J u ly 1 s t ,
Such a re q u ire m e n t i s
n e c e s s a r y i n th e c a s e o f many v e r y l a r g e em p lo y ers i n o r d e r t h a t t h e i r
p a y r o ll sy stem s w i l l n o t be c o n s t a n t l y d i s r u p t e d ,
E m ployers a r e g iv e n th e o p tio n to u s e t a b l e s somewhat s i m i l a r to
th o s e em ployed in c o n n e c tio n w ith th e v i c t o r y ta x to d e te rm in e th e
amount to be w ith h e ld , r a t h e r th a n com puting by th e p r e c i s e m ethod o f
s u b t r a c t i o n o f th e ex em ption and m u l tip l y in g by th e p e r c e n ta g e f i g u r e
in th e c a se o f eac h em ployee. The w ith h o ld in g t a b l e s s e t o u t in th e
law c o v e r th e common p a y r o l l p e r io d s u s e d in b u s in e s s o r g a n iz a ti o n s ,
and a d e te r m in a tio n of th e amount to be w ith h e ld can be q u ic k ly
a s c e r t a i n e d by f in d i n g th e p ro p e r column and l i n e on th e a p p l ic a b l e
t a b l e f o r th e em ployee w ith th e w ith h o ld in g ex em p tio n s t a t e d in th e
c e r t i f i c a t e f i l e d by him . At th e end o f e v e ry y e a r and even b e f o r e
t h a t tim e , sh o u ld an em ployee c e a s e h i s employment w ith a p a r t i c u l a r
em ployer, th e em ployer i s r e q u ir e d to f u r n i s h to each em ployee
a r e c e i p t show ing th e wages p a id d u r in g th e c a le n d a r y e a r and th e
amount o f t a x w ith h e ld w ith r e s p e c t to h i s w ages. A d u p l i c a t e of
t h i s r e c e i p t f i l e d w ith th e C om m issioner w i l l c o n s t i t u t e th e in fo rm a
ti o n r e t u r n i n l i e u o f th e form 1099 now r e q u ir e d to be f i l e d by em
p lo y e r s . U nder th e law , a s p a s s e d by th e C o n g ress, th e re q u ire m e n t
o f th e em ployer to r e t u r n and pay o v er th e t a x w ith h e ld i s g e n e r a l in
la n g u ag e and fo llo w s th e p r o v is io n s o f th e law w ith r e s p e c t to S o c ia l
S e c u r ity ta x e s # Tor th e p r e s e n t tim e , a t l e a s t , i t i s c o n te m p la te d
t h a t th e C o m m issio n er's r e g u l a t i o n s w i l l c a l l f o r r e t u r n o f th e ta x a t
q u a r t e r l y i n t e r v a l s a s in th e 'case o f S o c ia l S e c u r it y t a x e s .
A new f e a t u r e i s one u n d er w hich th e S e c r e t a r y o f th e T re a s u ry may
a u t h o r i z e d e p o s i t a r i e s and f i n a n c i a l a g e n ts o f th e U n ite d S t a t e s to
a c c e p t d e p o s it s o f ta x e s w ith h e ld from em ployees from tim e to tim e and
may p r e s c r ib e th e c o n d itio n s u n d e r w hich th e r e c e i p t o f su ch ta x e s by
a u th o riz e d d e p o s i t a r i e s s h a l l be t r e a t e d a s payment o f th e ta x e s by
th e c o l l e c t o r s , T h is p r o v is io n i s a v e ry n e c e s s a r y and h e l p f u l one
~5r*"both to th e Government and. to e m p lo y ers. L arg e em p lo y ers whose c o l l e c t i o n
o f ta x e s w ith h e ld a t th e s o u rc e from t h e i r em ployees would ru n i n t o
m i l l i o n s o f d o l l a r s each q u a r t e r o f th e y e a r a r e r e l u c t a n t to a c c e p t th e
r i s k o f h o ld in g th e s e fu n d s f o r th e q u a r t e r l y p e r io d a t th e end o f w hich
r e tu r n s a re o r d in a r ily file d *
By a system o f c u r r e n t m o n th ly o r more
f r e q u e n t d e p o s it o f fu n d s i n U n ite d S t a t e s d e p o s i t a r i e s n o t o n ly d o es th e
r i s k o f l o s s become t r a n s f e r r e d from th e em ployer to th e Government h u t
a l s o th e T re a s u ry i s more q u ic k ly a b le to u t i l i z e th e fu n d s flo w in g i n
from c o l l e c t i o n a t th e so u rce* The i n s t r u c t i o n s to .e m p lo y e r s w hich have
a lr e a d y b een p r e p a re d and a r e now b e in g d i s t r i b u t e d c a r r y th e s ta te m e n t
t h a t i t w i l l be th e d u ty o f e v e ry em ployer who w ith h e ld more th a n $100
d u rin g th e month to pay th e w ith h e ld am ounts to a d e p o s it a r y w ith in te n
day s a f t e r th e 'c lo s e o f each m onth, e x c e p t f o r th e l a s t month o f th e
q u a r te r f o r w hich th e r e t u r n w i l l be f i l e d *
The am ounts c o l l e c t e d in
t h i s l a s t m onth w i l l be r e m i tt e d to th e C o ll e c t o r w ith th e r e tu r n *
These a r e th e h i g h l i g h t s o f th e d e t a i l s o f th e new w ith h o ld in g
te c h n iq u e w h i c h , i t i s c o n te m p la te d , w i l l i n i t s e l f make some 70 p e r c e n t
o f th e ta x p a y e r s o f th e c o u n try s u b s t a n t i a l l y f u l l y c u r r e n t i n t h e i r
incom e ta x l i a b i l i t i e s to th e Government* T hese ta x p a y e r s w i l l h av e o n ly
m in o r y e a r - e n d a d ju s tm e n ts by way o f ta x paym ent or r e f u n d to be made a t
th e tim e o f f i l i n g t h e i r a n n u a l r e tu r n s *
I n d e v e lo p in g t h i s te c h n iq u e ,
th e T re a s u ry and th e C o n g ress were a b le to u t i l i z e many h e l p f u l su g
g e s ti o n s w hich came from em p lo y ers and t h e i r r e p r e s e n t a t i v e s upon whom
th e b u rd en o f c o l l e c t i o n a t th e s o u rc e i s n e c e s s a r i l y c a s t . These sug
g e s t i o n s w ere p r i n c i p a l l y u s e f u l to re d u c e th e c o m p lic a tio n s o f th e
w ith h o ld in g sy stem w hich ta k e s in t o a c c o u n t th e i n d i v i d u a l em ployee*s
fa m ily s ta tu s * The s p le n d id c o o p e r a tiv e s p i r i t e x e m p lif ie d by th e s e
b u sin essm en c o n s t i t u t e s a f i n e example o f th e A m erican e n th u sia sm f o r
g e t t i n g l a r g e ta s k s acco m p lish ed *
3y
C u rre n t paym ent o f Tax Hot C o lle c te d a t S o u rce
S in ce w ith h o ld in g a p p l i e s o n ly to wages and n o t to a l l ty p e s o f
wages and s in c e t h e r e i s c o l l e c t e d th ro u g h v d th h o ld in g o n ly th e norm al
ta x , th e s u r t a x a t th e f i r s t b r a c k e t r a t e and th e n e t v i c t o r y ta x ,
a d d i t i o n a l ch an g es i n o u r t a x c o l l e c t i o n sy stem a r e n e c e s s a r y to in s u r e
t h a t a l l ta x p a y e r s a r e c o m p le te ly c u r r e n t* What I am ab o u t to d e s c r ib e
to you i s th e sy stem d e v is e d u n d e r th e C u rre n t Ta x paym ent A ct f o r
p e rs o n s whose wages ex ceed th e f i r s t s u r ta x b r a c k e t and f o r p e rs o n s who
a r e in th e s i t u a t i o n o f m ost o f you, t h a t i s , th o s e who a r e i n d i v i d u a l
e n t r e p r e n e u r s , p r o f e s s i o n a l men and th e l i k e , w ith r e s p e c t to whose
income th e system o f c o l l e c t i o n o f ta x e s by w ith h o ld in g h a s no a p p l i
c a t i o n . I am g o in g to d e s c r ib e t h i s system o f c u r r e n t t a x paym ent,
f i r s t in i t s s e t t i n g a s a perm anent f e a t u r e o f o u r incom e t a x law .
The s p e c i a l p r o v is io n s w ith r e s p e c t to th e y e a r 19^-3 i *1 w hich th e
t r a n s i t i o n i s made, I w i l l d is c u s s l a t e r .
-
6
-
As a y e a r - i n , y e a r —o u t sy stem , i t i s c o n te m p la te d t h a t each i n d i
v id u a l income ta x p a y e r ( o th e r th a n an e s t a t e , t r u s t , o r n o n - r e s id e n t
a l i e n whose wages a r e n o t s u b je c t to w ith h o ld in g ) who f u l f i l l s th e r e
q u ire m e n ts f o r th e f i l i n g o f d e c l a r a t i o n s w i l l f i l e a t th e tim e o f
f i l i n g h i s income ta x r e t u r n f o r th e p re c e d in g ta x a b le y e a r , a d e c l a r a
t i o n show ing th e amount o f h i s e s tim a te d t o t a l ta x l i a b i l i t y f o r th e
c u r r e n t y e a r , th e amount o f ta x w hich he e s tim a te s w i l l be w ith h e ld
a t th e s o u rc e and th e d i f f e r e n c e betw een th e s e two amounts* T h is
d i f f e r e n c e w i l l c o n s t i t u t e h i s e s tim a te d t a x f o r th e y e a r . At th e
tim e o f f i l i n g th e s e d e c l a r a t i o n s , o n e - f o u r th o f th e e s tim a te d ta x
shown on th e d e c l a r a t i o n w i l l be p a id and i n t h e ev e n t t h a t circu m
s ta n c e s o c c u r r in g l a t e r i n th e , y e a r do n o t o p e r a te to make th e o r i g i n a l
e s tim a te i n c o r r e c t , an a d d i t i o n a l o n e -rfo u rth o f th e e s tim a te d ta x w i l l
be p a id on o r b e f o r e th e f i f t e e n t h d a y p f th e l a s t m onth o f th e rem a in
in g q u a r t e r s o f th e ta x a b le y ear* Where l a t e r c irc u m s ta n c e s show th e
o r i g i n a l e s tim a te to be i n a c c u r a t e , be i t e i t h e r to o h ig h or to o low
an o p p o r tu n ity i s g iv e n to th e ta x p a y e r to f i l e an amended d e c l a r a t i o n ,
once i n each q u a r t e r o f th e ta x a b le y e a r .
As to how to make an a c c u r a te e s tim a te o f y o u r t a x l i a b i l i t y on
M arch 1 5 th o f any y e a r , X im ag in e t h a t you may w e ll be t u r n i n g o v e r i n
yo u r m inds th e id e a o f a s k in g me w h eth er I have any recom m endation as
to th e p a r t i c u l a r ty p e o f c r y s t a l b a l l w hich you can u s e . X concede
t h a t th e p roblem may, in some o a s e s , be a d i f f i c u l t one, e s p e c i a l l y
f o r p e rs o n s i n y o u r s i t u a t i o n b u t t h e r e a r e a few s u g g e s tio n s w hich may
be o f h e lp to you. P e rh a p s y o u r e x p e r ie n c e o v er a number o f y e a r s w i l l
i n d i c a t e to you t h a t y o u r p r i o r y e a r s ’ income a d j u s t e d f o r any s p e c i a l
c irc u m s ta n c e s w hich you may be a b le to f o r e s e e w i l l form a fo u n d a tio n
f o r y o u r e s ti m a t e . A lso , you w i l l r e c o g n iz e th e f a c t t h a t m aking
a c o n s c ie n tio u s a tte m p t to e s tim a te a s n e a r l y a c c u r a t e l y a s p o s s i b l e ,
you may o b v ia te th e n e c e s s i t y o f m aking amended d e c l a r a t i o n s in th e
c o u rs e o f th e y e a r and f in d i n g y o u r s e lv e s r e q u ir e d to make e x t r a heavy
paym ents l a t e r in th e y e a r . But i f t h a t u n e x p e c te d f e e sh o u ld come in
l a t e r i n th e y e a r , you hav e u n t i l December 15 t h to r e v i s e y o u r o r i g i n a l
e s tim a te o f income and co n se q u e n t ta x l i a b i l i t y *
The law p ro v id e s t h a t ,
w henever an amended d e c l a r a t i o n i s f i l e d , th e q u a r t e r l y payment o f
e s tim a te d t a x w hich acco m p an ies th e amended d e c l a r a t i o n and any s u b s e
quent paym ents n o t y e t due s h a l l be a d j u s t e d in amount to r e f l e c t th e
change in th e amount o f e s tim a te d tax»
The law g iv e s s p e c i a l r e c o g n i tio n to th e fa rm e r i n c o n n e c tio n w ith
t h i s re q u ire m e n t f o r f i l i n g o f a d e c l a r a t i o n and p ay in g e s tim a te d ta x .
A p e rs o n who comes w ith in th e d e f i n i t i o n o f fa rm e r - t h a t i s , a p e rs o n
who d e r iv e s a t l e a s t 80 p e r c e n t o f h i s g r o s s income from fa rm in g - i s
g iv e n th e o p tio n o f f i l i n g h i s d e c l a r a t i o n on o r b e f o r e th e f i f t e e n t h
day o f th e t w e l f t h m onth o f th e ta x a b le y e a r . At t h i s tim e h e i s r e
q u ire d to pay th e t o t a l amount o f th e e s tim a te d ta x shown on th e
d e c la ra tio n .
-7
L e t me p o in t o u t t h a t i t w i l l n o t "be n e c e s s a r y f o r a l l ta x p a y e r s
to f i l e a d e c l a r a t i o n . P e rs o n s who a r e p r i n c i p a l l y wage e a r n e r s e a r n in g
l e s s th a n $2700 p e r y e a r in th e c a se o f a s i n g l e p e rs o n and $3500 in
th e c a s e o f a m a rrie d p e rs o n and h i s sp o u se w i l l have m ost o f t h e i r
income ta x l i a b i l i t i e s c o m p le te ly p a id th ro u g h th e w ith h o ld in g p r o c e s s .
To e l im in a te u n n e c e s s a ry p aperw ork f o r su ch p e r s o n s , t h e r e f o r e , th e law
p r e s c r i b e s in th e c a s e o f a p e rs o n h a v in g a g r o s s income o f $100 o r
l e s s from s o u rc e s n o t s u b je c t to w ith h o ld in g , he w i l l have to f i l e
a d e c l a r a t i o n o n ly i f he e i t h e r h ad i n th e p r i o r y e a r , o r e x p e c ts to
have i n th e c u r r e n t y e a r , wages i n e x c e ss o f $2700 o r $3500 d e p en d in g
on w h eth er he i s s in g le o r m a r r ie d . Thus i n s t e a d o f r e q u i r i n g d e c l a
r a t i o n s from a l l o f th e e s tim a te d f o r t y - f o u r m i lli o n ta x p a y e r s o f th e
c o u n try , d e c l a r a t i o n s w i l l be r e q u ir e d from o n ly f o u r te e n m i l l i o n .
F o r p e rs o n s whose income from s o u rc e s o th e r th a n wages s u b je c t to
w ith h o ld in g ex ce ed s $ 100 , d e c l a r a t i o n s a r e r e q u ir e d o n ly from th o s e
whose g r o s s income was s u f f i c i e n t f o r th e p re c e d in g ta x a b le y e a r , o r
i s e x p e c te d to be s u f f i c i e n t f o r th e c u r r e n t ta x a b le y e a r , to r e q u i r e
th e f i l i n g o f an income ta x r e t u r n . T&e p r i v i l e g e i s e x te n d e d to
h u sb an d s and w iv es to make a j o i n t d e c l a r a t i o n b u t an e l e c t i o n to do
so w i l l n o t be b in d in g f o r th e p u rp o s e s o f f i l i n g th e a n n u a l r e t u r n s
o f th e sp o u se s and any paym ents on a c c o u n t o f e s tim a te d ta x made by
husband or w ife i n a j o i n t d e c l a r a t i o n may be t r e a t e d a s paym ents on
a c c o u n t o f th e t a x l i a b i l i t y o f e i t h e r th e husband o r th e w ife o r may b*
d iv id e d b etw een them i n any m anner th e y se e f i t .
Of c o u rs e , no system o f income ta x c o l l e c t i o n would be found
w o rk ab le i f t h e r e w ere no s a n c tio n s f o r i t s e n fo rc e m e n t. A c c o rd in g ly ,
a s you w ould e x p e c t, t h e r e a r e s a n c tio n s w hich w i l l in s u r e t h a t i n d i
v id u a l incom e ta x p a y e r s w i l l make a d i l i g e n t e f f o r t to e s tim a te t h e i r
ta x and to pay i t d u r in g th e ta x a b le y e a r a s t h e i r incom e i s e a rn e d .
The law p r o v id e s t h a t w here th e e s tim a te d ta x o f a ta x p a y e r to g e t h e r
w ith th e am ounts a c t u a l l y w ith h e ld a t th e s o u rc e f a l l s s h o r t o f
SO p e r c e n t o f h is a c t u a l g r o s s ta x l i a b i l i t y — t h a t i s , h i s t o t a l
incom e and v i c t o r y ta x l i a b i l i t y b e f o r e c r e d i t f o r am ounts w ith h e ld a t
th e so u rc e —- th e r e s h a l l be added to th e t a x f o r w hich he i s l i a b l e an
amount e q u a l to 6 p e r c e n t o f th e d i f f e r e n c e b etw een th e a c t u a l g r o s s
ta x l i a b i l i t y and th e e s tim a te d ta x p lu s w ith h o ld in g c r e d i t o r th e
amount by w hich SO p e r c e n t o f h i s g r o s s ta x l i a b i l i t y ex ce ed s th e
e s tim a te d ta x p lu s w ith h o ld in g c r e d i t s , w h ich ev e r i s th e l e s s e r .
In th e case o f fa rm e rs e x e r c is in g th e o p tio n t o f i l e y e a r - e n d d e c l a
r a t i o n s , th e t o l e r a n c e l i m i t f o r a c c u r a te e s tim a tio n o f th e t o t a l ta x
l i a b i l i t y i s 66- 2 /3 p e r c e n t.
F o r exam ple, a s a l a r i e d p e rs o n e s ti m a t e s t h a t h i s t o t a l ta x l i a
b i l i t y f o r th e y e a r w i l l amount to $S0Q? He e s tim a te s t h a t t h e r e w i l l
be w ith h e ld from him $600 and h e f i l e s a d e c l a r a t i o n show ing an e s t i
m ated ta x o f $200, p a y in g $50 on each q u a r t e r l y i n s t a l l m e n t . H is
a c t u a l g r o s s ta x l i a b i l i t y , however* comes to $ 1200 , and h e a c t u a l l y
h as w ith h e ld from him $700. He would pay on h i s r e t u r n f i l e d a f t e r
th e c lo s e o f th e ta x a b le y e a r in a d d i t i o n t o th e $ 300 , by w hich h i s
e s tim a te d t a x and ‘paym ents by w ith h o ld in g d u r in g th e ta x a b le y e a r f e l l
-
8-
.
s h o r t o f h i s a c t u a l ta x l i a b i l i t y , th e sum o f $18, t h a t b e in g 6 p e r c e n t
o f th e $300 d i f f e r e n c e .
T here a r e , o f c o u r s e , a d d i t i o n a l s a n c tio n s f o r
th e f a i l u r e to f i l e a d e c l a r a t i o n and f o r f a i l u r e to pay any in s ta llm e n t
o f e s tim a te d t a x .
At th e tim e o f f i l i n g r e t u r n s a f t e r th e c lo s e o f th e ta x a b le y e a r
any b a la n c e o f ta x l i a b i l i t y n o t p a id c u r r e n t l y d u rin g th e ta x a b le y e a r
m ust be p a id in f u l l and th e i n s ta llm e n t p r i v i l e g e no lo n g e r i s a v a i l a b l e
to i n d i v i d u a l ta x p a y e r s . In some c a s e s , o f c o u rs e , th e r e w i l l have b een
p a id d u r in g th e ta x a b le y e a r more th a n an i n d i v i d u a l 's t o t a l ta x l i a
b ility *
I n a c a s e o f t h i s s o r t where th e r e t u r n f i l e d i n d i c a t e s such
an overpaym ent, a new p r o v is io n o f th e law a llo w s th e ta x p a y e r to u s e
a s a c r e d i t to d is c h a r g e h i s l i a b i l i t y f o r e s tim a te d t a x shown on th e
d e c l a r a t i o n f i l e d a t th e same tim e a s th e r e t u r n , th e amount o f th e
o v erp ay m en t.
1^,
The T r a n s i t i o n Y ear
We have now c o v ere d two o f th e .fo u r p o in t s o f my d is c u s s i o n . I can
r e a s s u r e th o s e who a r e w eary by s a y in g we a r e "h alfw ay up th e s t a i r s . "
I come a t t h i s p o in t o f th e s t a i r s to th e t r a n s i t i o n y e a r — 19U3 .
W ith r e s p e c t to what you and I and th e o th e r m i l l i o n s o f ta x p a y e r s in
th e c o u n try w i l l have to do and to pay in 19 m-3 » f i r s t ’ o f a l l l e t me
em phasize t h a t th o s e o f u s who e l e c te d to pay o u r ta x i n i n s t a l l m e n t s ,
m ust pay o u r Ju n e l ^ t h i n s t a l l m e n t , j u s t a s i f th e r e had b een no l e g i s
l a t i o n c h an g in g o u r sy ste m . Then, a s o f Septem ber 1 s t , 19 U3 , th e
paym ents made on a c c o u n t o f th e ta x l i a b i l i t y f o r th e ta x a b le y e a r i9 h 2
w i l l be c o n s id e r e d to be paym ents on a cc o u n t o f th e ta x l i a b i l i t y f o r
th e ta x a b le y e a r I 9 U3 ,
On S eptem ber 1 5 th , in d i v i d u a l ta x p a y e r s to whom th e c u r r e n t system
a p p l i e s w i l l f i l e t h e i r d e c l a r a ti o n s * 3For t h i s t r a n s i t i o n y e a r an a d d i
t i o n a l g ro u p o f wage—e a r n e r s w i l l be r e q u ir e d to f i l e d e c l a r a t i o n s who,
once th e t r a n s i t i o n i s a c c o m p lish e d , w i l l n o t be r e q u ir e d to f i l e
d e c l a r a t i o n s , J r e f e r to p e rs o n s who w ere r e q u ir e d to f i l e a r e t u r n
f o r 19b2 and whose g ro s s income from wages in I 9 H2 was g r e a t e r th a n
t h a t w hich can be e x p e c te d f o r 19^-3 &nd whose wages a r e l e s s th a n
th e $2700 o r $3500 f i l i n g r e q u ir e m e n t. P i l i n g by th e s e p e rs o n s i s
n e c e s s i t a t e d by th e f a c t t h a t th e s o - c a l l e d f i r s t a n t i - w i n d f a l l
p r o v is io n in e f f e c t p r o v id e s t h a t i n no e v e n t w i l l a t a x p a y e r 's ta x
f o r 19^3 be l e s s th a n h i s 19.U2 t a x l i a b i l i t y w ould have b een had i t
n o t been d is c h a r g e d . T hese d e c l a r a t i o n s w i l l show th e e s tim a te d t o t a l
ta x l i a b i l i t y o f th e ta x p a y e r s f o r 19^3
w i l l show th e amount w hich
th e ta x p a y e r s e s tim a te w i l l have been w ith h e ld from them d u r in g th e y e a r,
th e amount w hich h a s .a l r e a d y been p a id by them on a c c o u n t o f t h e i r 19 U3
ta x a s paym ents made o r i g i n a l l y on a c c o u n t o f th e 19^2 ta x , and w i l l
show th e b a la n c e o f th e e s tim a te d ta x r e q u ir e d to be p a id on
S eptem ber 15 t h and December 1 5 th o f t h i s y e a r .
T h is b r in g s u s to th e
l i a b i l i t y . As a t e c h n i c a l
c o m p le te ly d is c h a r g e d , In
b i l i t y i s i n most c a s e s 75
c o n s id e r a tio n o f w hat happens to th e 19h2
l e g a l m a tte r th e 19^-2 ta x l i a b i l i t y i s
e f f e c t , how ever, th e d is c h a r g e o f t a x l i a
p e r c e n t o f th e ta x f o r 19^2 o r 19 ^ 3 , w h ich ev er
-9 is the lower'. Thus, for 19U3 the estimated tax may he something a little
different than the estimated tax for subsequent years.
Since the
so-called first anti-windfall provision requires that the I9U3 tax
shall be increased by any excess of the 1 9 h 2 tax over the I9U3 tax,
except in the case of members of the armed forces as X will explain
later, the estimated tax in many cases may represent merely the 19 U2
liability decreased by the amounts estimated to be withheld during the
year and may, therefore, have no relation to the income of the taxpayer
during I9U3.
^
In c a s e s w here th e 19^3 t a x l i a b i l i t y ex ceed s th e I 9 U2 ta x l i a b i l i t y 25 p e r c e n t o f th e 19^-2 l i a b i l i t y i s added a s a p a r t o f th e ta x
f o r X9 U3 . ^ T h is 25 p e r c e n t, how ever, i s n o t a component o f th e e s t i
mated. ta x to be p a id d u r in g th e y e a r 19^3 b u t m ust be a c c o u n te d f o r and
p a id e i t h e r on M arch 15, 1 9 ^ * i n th e c a s e o f a c a le n d a r y e a r ta x p a y e r
o r one—h a l f on t h a t d a te and one—
h a l f a y e a r from t h a t d a te w here an
e x te n s io n o f tim e i s a p p l ie d f o r , Where, how ever, th e I 9 I+2 ta x l i a
b i l i t y ex ce ed s th e 19^3 ta x l i a b i l i t y , th e e x c e ss o f 19 b 2 l i a b i l i t y i s
added to and becomes a p a r t o f th e t a x f o r 19^3 and a p a r t o f th e e s t i
m ated ta x w hich m ust be p a id c u r r e n t l y d u r in g I 9 U3 * I n a d d i t i o n , th e r e
i s added to th e I 9 U3 ta x , 25 p e r c e n t o f th e amount o f th e 19 U3 ta x w hich
m ust be a c c o u n te d f o r and p a id on M arch 15, 1 9 ^ , o r o n e - h a l f on M arch 15 ,
19^h and o n e—h a l f a y e a r from t h a t d a t e . The re a s o n f o r th e re q u ire m e n t
t h a t ta x p a y e r s m ust in any e v e n t p ay th e h ig h e r o f th e 19^2 o r 19^3 ta x
l i a b i l i t y i s fo u n d in th e f a c t t h a t th e s e ta x p a y e r s e x p e c te d to and
would have had to pay t h e i r 19^2 l i a b i l i t i e s i f no change had been made
i n th e la w -an d i t seemed unw ise to r e l i e v e an y o f t h i s e x p e c te d l i a
b i l i t y m e re ly to e f f e c t th e change to th e c u r r e n t paym ent sy stem ,
I have spoken o f 75 p e r c e n t f o r g iv e n e s s o f ta x f o r th e lo w er o f
19^2 o r I 9 U3 . The law in c r e a s e s t h a t f o r g iv e n e s s to 100 p e r c e n t i n th e
c a s e o f ta x p a y e r s whose ta x f o r th e lo w er o f th e two y e a r s i s $50 o r
le s s .
In c a s e s i n w hich e i t h e r th e t a x f o r 19^2 o r th e ta x f o r 19 U3
does n o t ex ce ed $50 and th e t a x f o r th e o th e r y e a r in th e co m p ariso n i s
g r e a t e r , no 25 p e r c e n t amount i s added to th e t a x f o r 19 U3 , and by
re a s o n o f a n o tc h p r o v is io n where th e ta x f o r th e lo w er y e a r o n ly
s l i g h t l y ex ce ed s $ 50 , t h e r e i s added to th e I 9U3 ta x 25 p e r c e n t o f th e
amount o f th e t a x f o r th e lo w e r y e a r o f t h e d i f f e r e n c e betw een $50 and
th e amount o f th e ta x , w h ich ev e r i s th e l e s s e r . J’o r exam ple, an i n d i
v id u a l whose ta x l i a b i l i t y f o r 19^2 was $b 0 and whose td x l i a b i l i t y
f o r 19^3 was $100 would have ad d ed to h i s 19^+3 t a x p a y a b le on March 1 5 th
th e sum o f $ 10 , s in c e o n e - f o u r th o f $60 i s g r e a t e r th a n th e d i f f e r e n c e
betw een $50 and $ 60 *
The popularly-termed second anti-windfall provision which j will
now attempt to explain to you seems to be the provision which causes
the greatest amount of confusion and misunderstanding.
It is probably
fortunate, therefore, that it will apply in comparatively few cases.
T h is p r o v is io n was d e s ig n e d to c u t down th e ta x f o r g iv e n e s s where an
i n d i v i d u a l ’ s income i s v e r y s u b s t a n t i a l l y in c r e a s e d i n th e war y e a r s
19^2 and I 9U3 o v e r what i t was i n p re -w a r y e a r s , A lth o u g h th e r e may
be im p e r f e c tio n s and some ta x p a y e r s who a r e i n no Vay r e c e i v i n g war
-1 0 p r o f i t s may f e e l i t s im p a c t, th e C o n g ress ‘b e lie v e d t h a t t h i s p r o v is io n
w i l l s u b s t a n t i a l l y re d u c e th e ta x - f o r g i v e n e s s o f p e rs o n s who a r e m aking
enormous p r o f i t s o u t o f war c o n t r a c t s . I t w i l l a p p ly o n ly i n s i t u a
t i o n s where th e s u r t a x n e t incom e o f a ta x p a y e r f o r b o th 19 U2 and
19*4-3 i s more th a n $ 20,000 g r e a t e r th a n h i s h i g h e s t s u r t a x n e t income
r e c e iv e d in any o f th e y e a r s 1937 to 19*4-0, in c lu s iv e *
The y e a r ch o sen
o u t o f th e s e f o u r i s c a l l e d th e b a se y ear,. A t e n t a t i v e t a x f o r 19*4-2
o r 19*4-3 w h ich ev er y e a r i s th e lo w er i n t o t a l t a x l i a b i l i t y w ith o u t
re g a r d to th e C u rre n t Tax paym ent A c t, w i l l be com puted on th e amount
o f s u r t a x n e t income f o r th e b a s e y e a r p lu s $ 2 0 ,0 0 0 . The amount o f
t h i s t e n t a t i v e t a x so com puted a c t s a s th e u p p e r l i m i t o f ta x f o r
g iv e n e s s , In o th e r w ords, i f th e 25 p e r c e n t amount added to th e 19*4-3
t a x i s l e s s th a n th e d i f f e r e n c e betw een th e t e n t a t i v e ta x and th e t o t a l
ta x f o r th e y e a r , th e e x c e s s o f t h i s d i f f e r e n c e o v e r th e 25 p e r c e n t
amount i s f u r t h e r added to th e 19*4-3 ta x . As in th e c a s e o f th e 25
p e rc e n t am ount, t h i s a d d i t i o n i s to be a c c o u n te d f o r on th e r e t u r n
f i l e d f o r 19*4-3 and i s n o t a component o f th e e s tim a te d ta x to be p a id
c u r r e n t l y d u r in g 19*4-3* U n lik e th e 25 p e r c e n t am ount, how ever, tim e
f o r payment o f 7t h i s a d d i t i o n a l amount may be e x te n d e d o v e r a p e r io d
o f f i v e y e a r s and th e amount can be p a id i n f o u r e q u a l i n s t a l l m e n t s
commencing M arch 15, 19*4-5 i u th e c a s e o f c a le n d a r y e a r ta x p a y e r s and
c o rre s p o n d in g d a t e s f o r f i s c a l y e a r ta x p a y e r s . T h is e x te n s io n , u n lik e
th e 25 p e r c e n t e x te n s io n w hich i s w ith o u t i n t e r e s t , c a r r i e s i n t e r e s t
a t .the r a t e o f *4- p e r c e n t p e r annum on th e u n p a id b a la n c e u n t i l th e d a te
o f payment i f w ith i n th e p e r io d o f e x te n s io n o r 6 p e r c e n t i f p a id a f t e r
th e due d a t e .
As a m easu re o f r e l i e f to p o s s i b le h a r d s h ip s t h a t would a r i s e
u n d e r t h i s second a n t i - w i n d f a l l p r o v is io n , th e r e a r e two p r o v is io n s
o f th e law a p p l i c a b l e to s p e c i a l s i t u a t i o n s . The f i r s t of, th e s e i s
th e s i t u a t i o n w here th e ta x p a y e r i s a p a r t n e r i n , or th e i n d i v i d u a l
owner o f a b u s in e s s w hich, d u r in g th e b a s e y e a r was c a r r i e d on by
a c o r p o r a tio n and s u b s e q u e n tly w a s * liq u id a te d w ith th e a s s e t s a c
q u ir e d and b u s in e s s c a r r i e d on by th e fo rm e r s to c k h o ld e r s a f t e r
liq u id a tio n .
In su ch a c a s e th e owner o r p a r t n e r may com pute h i s
s u r ta x n e t income f o r th e b a s e y e a r a s i f th e e a r n in g s and p r o f i t s
f o r th e ta x a b le y e a r o f th e c o r p o r a tio n e n d in g w ith o r w ith i n th e b a se
y e a r had a l l been d i s t r i b u t e d a s d iv id e n d s . However, th e i n d i v i d u a l 1§
d i s t r i b u t i v e s h a r e o f th e s e h y p o t h e t i c a l d iv id e n d s can n o t exceed h i s
i n t e r e s t in th e p a r t n e r s h i p .
The second s i t u a t i o n i s t h a t in w hich th e ta x p a y e r r e c e iv e d
e i t h e r in 19*4-2 o r 19*4-3, w h ich ev e r y e a r i s th e m easure o f h i s ta x
f o r g iv e n e s s , co m p en satio n f o r p e r s o n a l s e r v i c e s , w hich, u n d er
s e c ti o n 107 o f th e I n t e r n a l Revenue Code, w ould be a t t r i b u t e d to
th e b a se y e a r . H ere, in com puting th e s u r t a x n e t. incom e o f th e b a se
y e a r , th e law p ro v id e s t h a t t h i s ty p e o f in c o m e•s h a l l be in c lu d e d i n
th e s u r ta x n e t incom e o f th e b a s e y e a r and ex c lu d e d from th e y e a r i n
w hich i t was r e c e iv e d .
-
11-
O th er p r o v is io n s w hich a f f e c t t a x f o r g iv e n e s s a r e a s f o llo w s ;
Ho amount o f th e 19^2 t a x l i a b i l i t y i s d is c h a r g e d in th e c a se o f an
in d i v i d u a l who d ie s in 19 ^ 2 . The l i a b i l i t y w i l l be c o l l e c t e d in th e
same m anner a s i f th e C u rre n t Tax Payment A ct h ad n o t been e n a c te d .
The re a s o n f o r t h i s p o li c y i s fo u n d in th e f a c t t h a t a d e a d .p e rs o n • •
h a s no need o f becom ing c u r r e n t in h i s ta x paym ents and s in c e n e i t h e r
he n o r ^ h is e s t a t e w i l l be in c lu d e d in th e c u r r e n t c o l l e c t i o n sy stem ,
t h e r e i s no need f o r ta x f o r g iv e n e s s in h i s c a s e , F o r th e p u r p o s e s '
com p ariso n o f t a x o f a husband and w ife w here a j o i n t r e t u r n i s
made f o r 19^2 and s e p a r a t e r e t u r n s a r e made f o r I 9 I+3 , o r v ic e v e r s a ,
th e ta x e s o f th e sp o u se s f o r th e y e a r in w hich a j o i n t r e t u r n i s n o t
made a r e r e q u ir e d to be a g g r e g a te d ,
A ll t h i s may sound v e r y c o m p lic a te d to you,, and I c an n o t deny,
t h a t i t i s c o m p lic a te d , b u t s t r a n g e l y enough th e p u b lic seems to
have a trem endous c a p a c it y f o r a s s i m i l a t i n g burdens and c o m p lic a tio n s
o v er a p e r io d o f tim e . We can o n ly hope t h a t tim e w i l l see th e w ork
in g o u t o f th e s e p ro b lem s a lo n g w ith o t h e r s .
At t h i s p o in t i t m ig h t i n t e r e s t you to know so m eth in g o f th e
e s tim a te s o f th e re v en u e y i e l d u n d e r th e new A c t. The n e t e f f e c t of
th e A ct i s to re m it 6 b i l l i o n 533 m i l l i o n s o f d o l l a r s in ta x l i a
b i l i t y o r 6 6 ,6 p e r c e n t o f th e 19^2 l i a b i l i t i e s .
On th e o th e r s id e
o f th e p i c t u r e by re a s o n o f t h a a c c e l e r a t e d paym ent o f ta x on 19U3
incom es and by r e a s o n o f th e c a r r y - o v e r o f th e 25 p e r c e n t u n r e m itte d ,
i t i s e s tim a te d t h a t th e F e d e r a l Government w i l l r e c e iv e in th e f i s c a l
y e a r 19 ^ , -3 b i l l i o n 6 m i l l i o n s more th a n i t w ould r e c e i v e u n d er th e
p r e s e n t law . A gain, in 19^5 th e rev en u e y i e l d to th e Government w i l l
be in c r e a s e d by 1 b i l l i o n 9 ^ m i l l i o n s by re a s o n o f th e f a c t t h a t p a r t
o f th e 25 p e r c e n t amount u n f o r g iv e n w i l l be p a id in t h a t y e a r and an
a d d i t i o n a l U9 m i l l i o n i t i s e s tim a te d w i l l be r e c e iv e d on a cc o u n t o f
th e s o - c a l l e d second a n t i - w i n d f a l l p r o v is io n . T h is same p r o v is io n
w i l l add h 9 m i l l i o n to th e r e c e i p t s o f th e t h r e e e n s u in g f i s c a l y e a r s ,
5*
M is c e lla n e o u s P r o v i s i o n s
The p r o v is io n s o f th e new A ct r e l a t i n g to members o f th e armed
f o r c e s in a c t i v e s e r v ic e w ith th e U n ite d S t a t e s Army o r Navy, o r t h a t
o f any o f th e U n ite d N a tio n s , r e l a t e b o th to th e y e a r - i n , y e a r - o u t
l i a b i l i t y f o r income ta x and a l s o to th e s p e c i a l s i t u a t i o n c r e a te d by
th e t r a n s i t i o n to c u r r e n t c o l l e c t i o n .
Jn th e f i r s t p la c e , members o f
th e armed f o r c e s a r e g r a n te d an e x c lu s io n from g r o s s income f o r th e
ta x a b le y e a r 19 h 3 and s u b se q u e n t y e a r s o f $ 1,500 p e r y e a r o f t h e i r
s e r v ic e p ay . T h is p r o v is io n g iv e s an in c r e a s e d e x c lu s io n from g r o s s
incom e o v er t h a t g r a n te d u n d e r th e Revenue A ct o f 19^2, T hat A ct
p ro v id e d t h a t $ 250 , in th e c a s e o f a s i n g l e p e rs o n , and $ 300 , in th e
c a s e o f a m a rrie d p e rs o n , s h o u ld be ex c lu d e d from th e g ro s s income
o f members o f th e armed f o r c e s below th e ra n k o f com m issioned o f f i c e r .
-
12-
F ur th e n , i t i s p ro v id e d t h a t w ith, r e s p e c t to a member of* th e armed
f o r c e s who d i e s i n a c t i v e s e r v ic e on o r a f t e r December 7, i g h l , any
income ta x l i a b i l i t y w hich i s u n p a id a t th e d a te o f h i s d e a th s h a l l
n o t be c o l l e c t e d , and, i f i t i s c o l l e c t e d from h i s e s t a t e , i t s h a l l be
re fu n d e d a s an o v erp ay m en t. T h is ab atem e n t a p p l i e s a l s o to any i n t e r
e s t o r p e n a l t i e s add6d to th e tax*
As f a r a s th e t r a n s i t i o n to th e c u r r e n t paym ent system i s con
c e rn e d , members o f th e arm ed f o r c e s a r e a g a in g iv e n s p e c i a l co n
s i d e r a t i o n . Where* u n d e r th e s o - c a l l e d f i r s t a n t i - w i n d f a l l p r o v i
s io n , th e n o n - m i lit a r y ta x p a y e r h a s added to h i s 19^3 ta x an y e x c e ss
o f th e 1942 ta x o v e r th e 19^3 ta x , a ta x p a y e r who i s a member o f th e
armed f o r c e s in e i t h e r 19^2 o r 19^-3 w i l l n o t have t h i s e x c e ss of
19^-2 ta x added to h i s 19^3 ta x to th e e x te n t t h a t su ch e x c e ss r e
s u l t s from th e in c l u s i o n i n h i s income o f e a rn e d n e t income f o r th e
y e a r . D arned n e t income w hich i s th u s ex c lu d e d i s t h a t income a s
d e f in e d in s e c ti o n 25 (a ) (h) o f th e Code r e l a t i n g to th e e a rn e d
income c r e d i t . Thus a ta x p a y e r who h e ld a $ 1 0 ,0 0 0 a y e a r jo b b u t
had no o u ts id e income f o r 19 ^ 2 , and w ould, t h e r e f o r e , have a 19^-2
ta x l i a b i l i t y o f $ 2 ,1 5 2 , b u t who became a p r i v a t e i n th e Army e a r l y
in 19^3, 9B& w ith h i s army pay e x c lu s io n w ould h av e no ta x l i a b i l i t y
f o r 1943 would h o t be r e q u ir e d to pay a s h i s I 9 U3 ta x th e sum o f
$ 2 ,1 5 2 a s would a c i v i l i a n in a co m p arab le incom e s i t u a t i o n .
A n o th er m is c e lla n e o u s p r o v is io n , u n r e l a t e d to th e c u r r e n t caym ent
system o f th e r e c e n t A ct, p r o v id e s f o r th e a p p o in tm en t o f two A s s i s t a n t
C om m issioners o f I n t e r n a l R evenue, F o rm e rly , t h e r e was one A s s i s t a n t
to th e C om m issioner. T h i s - p o s i t i o n h a s b een a b o lis h e d . The A ct a l s o
p ro v id e s t h a t tim e w i l l be e x te n d e d u n t i l F e b ru a ry 29, 19 I&, f o r th e
r e l e a s e o f pow ers o f a p p o in tm e n t.
I have a tte m p te d to g iv e y o u a l l o f th e h i g h l i g h t s and many o f
th e d e t a i l s o f th e C u rre n t Tax p a y m e n t'A c t, The A ct w i l l by p a i n f u l
n e c e s s i t y become more and more f a m i l i a r to you a s th e d ay s go on,
I can o n ly hope t h a t I hav e been o f some a i d in y o u r i n i t i a l u n d e r
s ta n d in g o f i t .
5
amoufct o f money from in d iv i d u a ls t h a t any d r iv e h a s r a is e d
in th e h i s t o r y o f th e w orld* Our g o a l f o r in d iv i d u a ls i n t h i s
Septem ber d r iv e w i l l b e t o g e t a s u b s t a n t i a l p a r t o f th e
n e c e s s a ry m o n e y I s a su b se q u en t d riv e * and d u rin g ^ th e f o u r
months in w hich t h e r e a r e no war lo a n d r iv e s
p a y r o ll sa v in g s
and o th e r c o n tin u in g s a l e s , we w i l l aim t o g e t th e r e s t # 1
d o n ’t b e lie v e t h i s i n an im p o s s ib le jo b fter th e American people#
th e incom es r e c e iv e d by a l l o f u s w i l l be so much g r e a t e r th a n
th e sum t o t a l o f a l l th e d in g s t h a t we can buy t h a t money w i l l
be a t hand t o p u rc h a s e th e n e c e s s a ry bonds and s t i l l pay ta x e s*
l i f e in s u r a n c e , m ortgage o b l i g a t i o n s , d o c to r s 1 b i l l s , and t o make
a l l th e r e s t o f th e n e c e s s a ry e x p e n d itu re s*
As S e c r e ta r y o f y o u r T re a s u ry , I can o n ly t e l l you how
much m oneyitfH tiae i s n eed ed ; I can o n ly la y th e f i g u r e s b e fo re
you f r a n k ly and h o n e s tly . The r e s t i s up t o you. I must depend
upon your own r e c o g n itio n o f y o u r r e s p o n s i b i l i t i e s • The v e ry
f a c t t h a t you a r e f r e e t o le n d a c c o rd in g t o th e d i c t a t e s o f your
c o n s c ie n c e , t h a t no s to rm tro o p e r comes sw ag g erin g i n t o y o u r
k itc h e n t o demand/your money — th e v e ry f a c t t h a t you a r e f r e e adds
th e more w eig h t to y o u r r e s p o n s i b i l i t y . We know now what t h i s
war i s go in g to c o s t t h i s y e a r . We know ab o u t how many p la n e s and
ta n k s and s h ip s we’ l l n ee d . We know a p p ro x im a te ly how many men
we w i l l have i n o u r arm ie s and how much equipm ent we’l l have to
p ro v id e f o r them .^r We know th o s e th in g s b ec au se o u r d ay s o f guess*
work a r e o v e r. We know e x a c tly what we a r e g o in g t o do and how we’rli
goin g to do it.F r o m now o n , we a r e g o in g t o do th e p la n n in g —
and th e a t ta c k in g . And I f e r v e n t l y hope t h a t we can c o n tin u e to
work o u t o u r f in a n c in g p la n s to g e th e r and keep them on a v o lu n ta ry
b a s i s . B u t, i n th e f i n a l a n a l y s i s , t h a t i s up t o you «»• th e
American p e o p le .
♦ * # * aft# * * *
4
e a rn in g more th en t h e i r u s u a l amount o f money, w i l l be a b le t o
in v e s t even more*
Many p eo p le w ith l a r g e r th a n u s u a l wages a r e a lr e a d y p u tti n g
* h ig h p e rc e n ta g e s o f t h e i r pay i n t o bonds* In some c a s e s , where
more th a n one member o f th e fa m ily i s w orking o r w here th e head
o f th e fa m ily h as a war jo b a t good p a y , th e p e rc e n ta g e o f War
Jfbnd buying i s ru n n in g t o h a l f , even m ore, o f th e fa m ily income*
T here a r e many women i n war jo b s, w ith husbands a ls o w o rk in g , who
a r e in v e s tin g 10Q$ o f t h e i r pay in Mar "Bonds, ev e ry c e n t th e y make.
Those a r e n ft i s o l a t e d c a s e s by any means* I n A p r il I v i s i t e d one
war p la n t where th e y w ere p u t t i n g 23$ Jot th e t o t a l p a y r o ll i n t o
bonds*
vqfor a moment
Jl
How I sh o u ld l i k e t o s to p h e re and d is c u s s w ith you/som e f a c ts
ab o u t war fin a n c e a s I se e them* I know t h a t nobody l i k e s h ig h
t a x e s , b u t t h i s isrfg jir, &&& I s i n c e r e l y b e lie v e t h a t ta x e s ought
t o be used t o pay
l a r g e a s h a re o f th e w ag -p o st a s p o s s ib le . |
I th in k ta x e s ought t o c o v e r som ething l i k e half^c*ur e x p e n se s.
They’ r e n o t c o v e rin g n e a r l y t h a t much now* On th e o th e r h an d , we
Can’ t r a i s e much more th a n h a l f th e money th ro u g h ta x e s because^
on such a huge s c a l e , we c a n ’t le v y ta x e s w ith f a ir n e s s * And t h a t ’s
wfcy we r e l y upon b o n d | s a l e s f o r th e rem a in in g amount
Bonds are
f l e x i b l e * They a llo w f o r th e p e r s o n a l o b lig a tio n s w hich you may h m
w hich may be e n t i r e l y d i f f e r e n t from th e o b l i g a t i o n s o f y o u r neighbor
Now, l e t ’ s t a l k f o r a moment a b o u t th e c o n c re te jo b o f r a i s i n g twice
as much ifroney from in d iv id u a l i n v e s to r s in th e n e x t s i x m onths•
F i r s t o f a l l , we’r e s t a r t i n g r i g h t now t o expand th e p a y r o l l savings
plan* We hope t o make i t p ro d u ce m o n th -in and m o n th -o u t 50$ more
th a n 4$ p re s e n t* E very w orker i s b e in g ask ed t o f i g u r e o u t f o r
h im s e lf how much more th a n th e 10$J we have p r e v io u s ly used as a
g o a l j r h e can la y a $ |d e o u t o f h i s c u r r e n t e a rn in g s f o r V&r Bonds,
W hether we w i l l succeed in t h i s depends s q u a re ly upon Labor and
Management w orking to g e th e r t o make th e p a y r o ll p la n work a t to p
e f f i c i e n c y in e v e ry p la n t in th e N atio n * ^ |w e a r e a ls o p la n n in g on
new war lo a n d r i v e s , e s p e c i a l l y t o r a i s e money from in d iv id u a ls *
The n e x t d r iv e w i l l s t a r t Septem ber 9* I am announcing t h i s f o r
th e f i r s t tim e to d a y b ec au se i t i s a p a r t o f th e b lu e p r in t o f th e
f u t u r e • On Septem ber
we w i l l la u n c h th e T h ird War Loan ^Brive,
and i t w i l l aim a t rAAsing th e l a r g e s t
>
mm
mm
D uring th e second h a l f o f t h i s y e a r, from th e f i r s t o f
J u ly u n t i l th e end o f December, i t i s g o in g t o be n e c e s s a r y f o r
you to in v e s t n o t a n o th e r 7 b ill io n s ^ b u t f a r more* To be e x a c t,
u n le s s we a r e a b le t o r a i s e th e ta x r a t e s b e f o r e th e end o f
th e y e a r , and b e fo re th e end o f th e y e a r g e t more ta x e s th a n
w i l l r e s u l t from th e p r e s e n t t a x s c h e d u le s , we e x p e c t t h a t we
may have t o ask you t o le n d y o u r ^ v e r m a e n t r g u rln g th e n e x t
s i x months ab o u t tw ic e as much a s in th e i w e v l i a i f o f th e year*
A ccording t o th e b e s t a v a ila b le f i g u r e s , th e money w i l l be
th e r e i n sa v in g s o u t o f o u r % 72 b i l l i o n s in n a t i o n a l income
d u rin g th e rem a in d er o f th e year* A ccording to o u r p r e s e n t p la n s ,
w© a r e a s k in g you t o in v e s t th e g r e a t e s t p o r tio n o f y o u r sa v in g s
in $ a r Bonds in th e n e x t s i x months*
I
I t i s im p o rta n t t h a t we g e t t h i s money e i t h e r in ta x e s o r
b o n d s ,'n o t o n ly t o I k f in a n c e th e war b u t t o p r o t e c t o u r s e lv e s
a g a in s t i n f l a t i o n .
Now* t h a t sounds l i k e a l o t , and i t i s a lo t* However, we know
th e money w i l l be t h e r e , b u t i n o r d e r to g e t it^ w e w i l l have to
have a more e f f i c i e n t s a le s o r g a n iz a tio n th a n e v e r b e f o r e . I t
means we w i l l have to have more v o lu n te e r w o rk ers b ecau se we w ill
have to s e l l bonds t o n e a r ly e v e ry man, woman and c h i ld in America*
I t means s o l i c i t a t i o n from house to h o u se , aunt from bench to bench
i n f a c t o r i e s , and from desk t o d esk i n o f f i c e s .
I am s u re we w i l l be a b le t o sw ing t h i s trem endous jo b i f we
a l l work to g e th e r , and I have good re a s o n f o r my c o n fid e n c e .
F i r s t , we have p ro o f t h a t we have th e w i l l t o do i t * D uring
th e Second War Loan d r iv e in A p r i l , we asked th e p e o p le , th e Individu
i n v e s t o r s , t o buy 2- 1/2 b i l l i o n d o l l a r s w orth o f b o n d s, and th e y
bought 3*1/4 b i l l i o n s . We asked in s u ra n c e co m p an ies, c o rp o ra tio n s
f o r 5 -1 /2 b i l l i o n s , and th e y in v e s te d n e a r l y 1 0 . We asked f o r
v o lu n te e r s t o ta k e o v er th e job o f s e l l i n g bonds to t h e i r f r ie n d s
and n e ig h b o rs , and more th a n a m il lio n men and women in th e U nited
S ta te s became v o lu n ta r y bond salesm en*
When th e f i n a l sc o re was i n , we found t h a t in th e Second
War Loan I& ive we had r a is e d alm o st as much a s th e t o t a l amount
r a i s e d d u rin g a l l o f th e f i v e bond d r iv e s i n World War I*
A nother re a s o n I am c o n f id e n t we w i l l be a b le t o r a i s e th e
money i s t h a t th e s e f i g u r e s , enormous as th e y a r e , a r e n ’t r e a l l y
quit® as bad as th e y sound. F or in s t a n c e , when I sa y t h a t our bond
g o a l i s tw ic e a s much as in th e f i r s t s i x m onths, t h a t d o esn ’t mean
t h a t ev e ry fa m ily i s go in g t o have to s e t j a s i d e a r b i t r a r i l y tw ice
a s much. Under th e v o lu n ta ry p la n , we~“Xeave i t to you y o u r s e lf
t o d e c id e how many bonds you can a f f o r d t o buy* F a m ilie s w ith
heavy p re -w a r com m itm ents, m o rtg ag es and in s u ra n c e and so on, may
n o t alw ays be a b le to a f f o r d tw ic e as much. But f o lk s who a re
[
I have some news f o r you o f how we p ro p o se to pay th e b i l l #
fro® now on.
Your m a g n ific e n t re sp o n se to th e War Loan D rive r
hag shown t h a t you a r e w i l l i n g , even e a g e r, to p u t up w ith r e a l
s a c r i f i c e s . You a r e r e s o lv e d t h a t we must w in. And you have a
r i g h t to know. You m ust k n o w ,if we a r e a l l to keep o u r eyes
a p d o u r h ead s c l e a r f o r th e h a rd Job t h a t s t i l l l i e s ahead o f u s,
such a d e te r m in a tio n c a l l s f o r in d o l l a r s and c e n t a l
and now th e d o l l a r s and c e n ts a r e to be r a i s e d .
"“~
Ur!
L e t 1 s b e g in w ith o u r r a t e o f spending in t h i s war and how
and why i t h a s grown. At th e tim e o f P e a r l
H arb o r, when we were
shocked i n t o a r e a l i z a t i o n o f what modern war r e a l l y i s by th e
tre a c h e ro u s m urder o f h u n d red s o f A m ericans by th e J a p a n e s e — even
th e n we were p o u rin g I n to war m a te r ia ls Sk m illio n d o l l a r s e day.
H ecovering from th e shock o f P e a r l H arb o r, we threw TTiwwmTr th e
®u r v a s t American ra a c h in ery ^ p ro d u ctio n in to h ig h g e a r ,
and by J u ly o f l a s t y e a r our war e x p e n d itu re s clim bed to l4 g
m illio n s a day. By th e end o f 19^2, we a* w ere sp en d in g lQg
m illio n d o l l a r s a d ay , and today th e f ig u r e i s ?4o m illio n .
Between s u n r is e t h i s m orning and s u n r is e tomorrow m orning, t h i s
war w i l l have c o s t a n o th e r fP.GG f o r every man, woman and c h i ld
in th e U n ite d S ta te s .
r
jl *
Why? Because we have s e t o u t /to p ro d u ce so much equipm ent
4,h at we w ill overpow er th e enemy w h erev er we meet him ; 5©9 many
bombing p l a n t s , f o r exam ple, th a t /th e re w i l l be t r a f f i c Jams in
th e sky o v er Berlin.*** w hich I u n d e rsta n d th e r e a r e # a lr e a d y . One
wave o f p la n e s som etim es has to W ait f o r a n o th e r to go i n . General
A rn o ld , commanding th e Army A i r / f o r c e s , sa y s f l a t l y t h a t he means
to bomb Germany o u t o f th e w ar, and Mr. C h u r c h ill say s thaX~*t
even i f we c a n ’ t / i t won’ t do ahy harm to t r y .
That w i l l
&
g r e a t d e a l o f money. A fo u r-m o to re d bombing p la n e
J u s t o n e «■*
c o s ts n e a rly h a l f a m illio n d o l l a r s . You have re a d t h a t we in te n d
to drop a th o u sa n d , two th o u san d , th r e e th o u sa n d , to n s o f blockf n th «
tewr® in every r a i d , and a s in g l e two th o u s a n d ,b lo c k - b u s te r c o s ts #^00. ^Every tim e one o f o u r b a ttle s h ip i
^ *•
s i x t e e n - i n c h t h e J a p a n e s e , i t co sts
f ^
Y
n
o th e r w ords, we a r e r e a l l y g e t t i n g in to th e war.
At l a s t , th e u n ite d N a tio n s a r e on th e o f f e n s iv e and t h a t ’ s where
we want to b e .
W ell, to p u t us where we w4dt to b e , in d iv id u a l bond buyers
?«r£x S
firs t
o f t h i s f m r Nhave in v e s te d 7 b i l l i o n d o lla r s
in w © ends—* a l i t t l e o v e r 1 0 ® o f t h e i r incom e. That d o e s n ’ t
In c lu d e money coming from c o r p o r a tio n s , banks o t o th e r i n s t i t u t i o n s .
That s th e amount t h a t th e p e o p le th em selv es tlsfca I e a r th a v e already
i n v e s t e d .M p w U vXnnXng t h i s w ar.
^ mAJ£TS
%>1e n d ld a s su ch an ach iev em en t i s , we c a n ’ t sto p now and
p a t o u r s e lv e s on th e b ack . Not a t t h i s moment c e r t a i n l y , when we
a r e on th e v ery b rin k o f in v a d in g Europe. With t h i s i n m ind,
&&
JU-rA*
4j:L*
kef
t
^
1 mm her® a s you know to award
th e T reasu ry ’T ’f l a g to y o u r c i t y o f K in g sto n i n to k en o f th e f a c t
t h a t ev e ry i n d u s t r i a l and com m ercial firm i n t h i s c i t y has a pay
r o l l sa v in g s p la n , t h i s ach iev em en t o f K in g sto n I s s i g n i f i c a n t ,
4s one c i t y a f t e r a n o th e r win® o u r f i f i n g * i t becomes a p p a re n t
t h a t th e n a tio n i s u n i f i e d and s tro n g In I t s su p p o rt o f th e w ar,
Hhen management and la b o r g e t to g e th e r — when th e em ployees o f
every f i r m in an e n t i r e c i t y s h a re t h e i r wages by le n d in g p a r t
o f them, week i n and week o u t, to t h e i r g o v e rn m e n t we have a
d e m o n stra tio n o f a r e a l w ill to w in,
J
So, H r, Mayor, on b e h a lf f the T reasu ry D epartm ent o f
th e U n ited S t a t e s , I p r e s e n t to you and to th e C ity o f K in g sto n ,
t h i s Tramsury *f' (fla g • *¥ *¥ ^ (jPttseXJ^ed^c&v^ 4k
t t h * ... ..
t h mn U a m .-to
L a d le s and G entlem en: l mm v ery g la d to have t h i s chance
to apeak to you h e re in K in g sto n , n o t o n ly b ecau se o f youi/ o u t
sta n d in g re c o rd in b u y in g m r Bonds and b e c a u se K in g sto n Ame a m r
h i s t o r y th a t goes back to George W ashington and th e d ay s o f th e
B e v e lu tio n , b u t b ec au se my own home a ls o i s in th e Hudson V alley
and I can t a l k to you a s one n e ig h b o r to a n o th e r , and I a® g la d
t h a t what I say to you a s a n e ig h b o r w ill go o v e r th e a i r to
p eo p le in o th e r e i t i l i s l i k e t h i s a c r o s s th e c o u n try , b ec au se
K ingsto n i s a ty p ic a l A merican town. I t i s b o th an i n d u s t r i a l
community and a farm in g community, and what I have to say touches
b o th i n d u s t r i a l w orkers and fa rm e rs .
Working meh and women h e re in K in g sto n to g e th e r w ith
w orking p e o p le in o th e r c i t i e s o f th e n a t io n , a r e b u ild in g war
equipm ent i n njpfa, v a s t q u a n t i t i e s and in i n t r i c a t e p e r f e c t io n
w ith th e r e s u l t t h a t o u r enem ies a r e n #t th e b ra v e supermen they
once w ere. They w ere b ra v e enough when th ey th o u g h t th ey co u ld
b e a t u s w ith o u r b ack s tu r n e d , b u t th ey a r e n ’ t so b o a s tf u l today.
And on th e s e f e r t i l e f i e l d s a lo n g o u r Hudson E lv e r , fa rm e rs a r e
r a i s i n g food f o r o u r s o l d i e r s and s a i l o r s and m a rin e s, o u r war
w o rk e rs, and o u r A l l i e s .
You p eo p le o f K in g sto n a r e d is c h a r g in g momentous ta s k s ,
w orkers and fa rm e rs a l i k e — * task s o f eq u al Im p o rtan ce , L e t me
speak to you now o f t h i s o th e r momentous ta s k t h a t you a r e sharing
so s p le n d id ly and t h e t * sh a re w ith you -—th e ta s k o f fin a n c in g
t h i s f i r s t # t r u l y c o lo n s s a l w ar-— t h i s war t h a t we I n te n d to make
a ls o th e l a s t *
. ..
(The fo llo w in g a d d re s s by SECRETARY MORGBNTHAU
■J
P r e s e n ta tio n o f a T re a su ry "T" f l a g to th e c i t y
f K in g sto n , N. Y*, i s sch ed u led to be d e liv e r e d a t
^
m*» E a s te r n War Tim e, S a tu rd a y , Ju ne 1 2 , 19A3~
r ° r r e l e a s e a t t h a t tim e *■ tim e . IT w i l l i e
C o ^ ^ y ! | ° V*r th e netw ork of th e N a tio n a l B ro a d c a stin g
a t tl^ -p r e s e n ta tio n
ty
TREASURY DEPARTMENT
Washington
(The following address by SECRETARY MORGENTMU at
the ^presentation of a Treasury "Tw flag to the city
of Kingston, N« Y., is scheduled to be delivered at
2 p. m., Eastern War Time, Saturday, June 12, 194137
and is for release a t th a t time, i t v a il be broadcast over the network of the National Broadcasting
Company,)
Thank you, Mr. Mayor:
I am here as you know to award
the Treasury W
TWflag to your c ity of Kingston in token of
the fact that every in d u stria l and commercial firm in this
city has a payroll savings plan.
Kingston is sig n ifican t.
This achievement of
As one c ity a fte r another wins our
*TU flag, i t becomes apparent that the nation is unified and
strong in it s support of the war.
1/hen management and labor
get together — when the employees of every firm in an en
tire c ity share th eir wages by lending part of them, week in
and week out, to th e ir Government, we have a demonstration
of a real w ill to win.
So, Mr. Mayor, on^ behalf of the Treasury Department of
the United S ta te s ,-I present to you and to the c ity of
Kingston, th is Treasury nTM fla g , * # (Presentation of
f la g .)
Ladies and Gentlemen; I am very glad to have this chance
to- speak^to you here in Kingston, not only because of your
outstanding record in buying War Bonds and because Kingston
cy
has a war history that goes back to George Washington and the
days of the Revolution, but because my own home also is in
the Hudson Valley and I can talk to you as one neighbor to
another, and I am glad that what I say to you as a neighbor
w ill go over the a ir to people in other c itie s like th is
across the^country, because Kingston is a typical American
town. I t is both an in d u stria l community and a farming f pm- '
munity, and what .1 have to say touches both in d u stria l workers
and farmers,
^Working men and women here in Kingston together with
working people in other c itie s of the nation* are building war
equipment in vast quantities and in in tric a te perfection with
the re su lt that our enemies arenft the brave supermen they
once were. They were brave enough when they thought they
could beat us with our backs turned, but they aren Tt so boast
ful today. And'on these f e r ti le field s along our Hudson River,
farmers are raising food for* our soldiers and sailo rs and
marines, our war workers, and our A llies,
v
f %
You people of Kingston are discharging momentous tasks,
workers and farmers alike
tasks of equal importance. Let
me speak to you now of this other momentous task that you
are sharing so splendidly and that I share with you - - t h e
task of financing th i s " f ir s t tru ly colossal war — th is war
that we intend to make also the la s t,
I have some news for you of how we propose to pay the
b ill from now on. Your magnificent response to the* War Loan
Drive has shown that you are w illing, even eager, to put up
with real sa c rific e s. You are resolved that we must win.
And you have a rig h t to know. You must know, i f we are a l l
to^keep our eyes and our heads clear for the hard job that
s t i l l lie s ahead of us, what such.a determination calls for in
dollars and cents and how the dollars and cents are to be raised
Let’s begin with our rate of spending in th is war and
how and why i t has grown. At the time of Pearl Harbor, when
we were shocked into a re a liz a tio n of what modern war re a lly
is by the treacherous murder of hundreds of Americans by the
Japanese -- even then we were pouring in to war m aterials 64
m illion dollars a day, Recovering from the shock of Pearl
Harbor, we threw the lever of our'vast American machinery of
production into high gear, and by July of la s t year our v/ar
expenditures climbed to 152 m illions a day, By the end of
1vj42, we were spending 198 m illion dollars a day, and today
the figure is 240 m illion. Between sunrise this morning and
sunrise tomorrow morning, this war w ill have cost another
$2.00 for every man, woman and child in the- United States,,
Why? Because we have set out to produce so much equip
ment that,we w ill overpower the enemy wherever we meet him; so
many bombing planes, for example, that there w ill be tr a f f ic
jams in the sky over Berlin -- which I understand there are
already. One wave of planes sometimes has to wait for another
to go in. General Arnold, commanding the Army Air Forces, says
fla tly that he means to bomb Germany out of. the war, and
Mr. Churchill says that even i f we can’t , i t won’t do any harm
to try . That w ill ,cost a great deal of money, A four.*motored
bombing plane -- ju st one -- costs nearly h alf a m illion dol
la rs. You haye read that we intend to drop a thousand, two
thousand, three thousand, tons of block-buster bombs on the
Axis nations in every ra id , and a single two thousand-pound
block-buster costs $400, Every time one of our battlesh ip s
fire s a broadside of sixteen-inch shells at the Japanese, i t
costs $13,000, In other words, we are re a lly getting into
the war-. At las
the United Nations are on the off en; ;ive and
th a t’s where we want to be.
Well, to put us where we want to be, Individual bond buy
ers during the f i r s t h alf of this year w ill have invested 7
b illio n dollars in .War Bonds -- a l i t t l e over 10 percent of
their income. That doesn’t include money coming from corpo
rations, banks or other in s titu tio n s . That’s' the amount th at
the people themselves w ill have already invested th is year
towards winning th is war.
Splendid as such an achievement is., we can’t stop now and
pat ourselves on the back. Not a t th is moment certain ly , when
we are on the very brink of invading Europe. -With th is in
mind, l e t ’s take a look ahead.
During the second half of this year, from theNf i r s t of
July u n til the end of December, i t is going to be necessary
for you to invest not another 7 b illio n s , but far more. To
be exact, unless we are able to raise the tax rates before the
end of the year, and before the end of the year get more taxes
than w ill re s u lt from the present tax schedules, we expect that
4
we may have to ask you to lend your Government, during the next
six months about twice as much as in the f i r s t half of the year.
According to the best available figures, the money w ill
be there in savings out of our 72 b illio n s in national income
during the remainder of the year. According to our present
plans, we are asking you to invest the g reatest portion of your
savings'in War Bonds in the next six months.
I t is important that we get th is money either in taxes or '
bonds, not only to finance the war but to protect ourselves'
against in fla tio n .
Now, that sounds like a lo t, and i t is a lo t. However,
we know the money w ill be there, but in order to get i t , we
w ill have to have a more e ffic ie n t sales organization than
ever before. I t means we w ill have to have more volunteer
workers because we w ill have to s e ll bonds to nearly every
man, woman and child in America. I t means s o lic ita tio n from
house to house, from bench to bench in fa c to rie s, and from
desk to desk in offices.
I am sure we w ill be able to swing th is xtremendous job
i f we a l l work together, and I have good reason for my confi
dence. F irs t, we have proof that we have the’w ill to do i t .
During the Second War Loan drive in A pril, we asked the people,
the individual investors, to buy 2-1/2 b illio n dollars worth
of bonds, 'and they botight 3-1/4 b illio n s . We asked insurance
companies, corporations for 5-1/2 b illio n s , and they invested
nearly 10. We asked for volunteers to take over the job of
sellin g bonds to th eir friends and neighbors, and more than
a m illion men and women in the United States became voluntary
bond salesmen.
When the fin a l score-was in, we found th at in the Second
War Loan drive we had raised almost as much as the to ta l
amount raised during a l l of the five bond drives in World
War I.
Another reason .1 am confident we w ill be able to raise
the money is th at these figures, enormous as they are, arenft
really quite as bad as they sound. For instance, when I say
that our bond goal is twice as-much as in the f i r s t six months,
that doesn’t mean that every family is going to have to set
5
aside cipt'iti’o.r’ily twice as much. Under the voluntary: plan, we
leave i t to you yourself to decide how many bonds you can afford
to buy. Families with heavy pre-war commitments, mortgages and
insurance and so on, may not always' be able to afford twice as
much. But folks who are earning more than th e ir usual amount
of money, w ill be able to invest even more*
^Many^people with larger than usual wages are already
putting high percentages of th e ir pay into bonds. In some
cases, where more than one member of the family is working or
where the head of the family has a war job a t good pay, the.
percentage^of War Bond buying is running to h alf, even more,
of the family income. There are many women in war jobs, with
husbands also working, who are investing 100 percent of th e ir
pay in War Bonds, every cent they make. ' Those a re n 't iso lated
cases by any means-. In April I v isite d one war plant where
they were putting 23 percent of the to ta l payroll into bonds.
how, I should lik e to stop here and discuss "with you for
a moment some facts about war finance as I see them. I know
that nobody lik es high taxes, but th is is war, and I sincerely
believe th at taxes ought to be used to pay for as large a share
of the^war cost as possible. I think taxes ought to cover
something like half of our expenses . They hr e not covering
nearly th at much now. On the other hand, we can 't raise much
more than h alf the money through taxes because, on such a huge
scale, we can 't levy taxes with fairn e ss. And th a t's why we
rely upon bond sales for the remaining amount.
Bonds are fle x ib le . They allow for the personal obliga
tions whiclr you may have, which may be e n tirely d ifferen t from
the obligations of your neighbor. Now, l e t 's ta lk for a moment
about^the concrete job. of raisin g twice as much money from
individual investors in' the next six months. F irs t of a l l,
we’re sta rtin g rig h t now to expand the payroll savings plan.
We hope to make i t produce month-in and month-out 50 percent
more than^at present. Every worker is being asked to figure
out for himself how much more bhan the 10 percent we have
previously used as a goal he can lay aside out of nis current
earnings for War Bonds. Whether we w ill succeed in th is de
pends squarely upon Labor and Management working together to
make the payroll plan work at top efficiency in everv slan t
in the nation.
We are also planning on new war loan drives, especially
to raise money from individuals. The next drive w ill s ta r t
September 9-. I am announcing th is for the f i r s t time today
because i t is a part of the blueprint of the future. On
September 9 we^will launch' the Third War Loan drive, and i t
w ill aim at raising^the la rg e st amount of money from in d i
viduals that any^drive has raised in the h isto ry of the world
Our goal for individuals in this September drive w ill be to
get a substantial part of the necessary money.
v. ,
a ^ s e q u e n t drive, and during the four months in
aF? n? war l ° an drives, through payroll savings
and other continuing sales, we w ill aim to get the re s t,
;
t b^ tle ^e th is is an ^ p o s sib le job for the American
people. The incomes received by a l l of us w ill be so much
•greater than the sum to ta l of a l l the things that we can buy
that money w ill be at hand to purchase the necessary bonds
and s t i l l pay taxes, l i f e insurance, mortgage obligations,
doctors b ills ,y and to make a l l the re s t of the necessary
As Secretary of your Treasury, I can o n ly .te ll you how
much money i$ needed; I can only lay the figures before you'
frankly and honestly. The re s t is up to you, I must depend
upon your own recognition of your re s p o n s ib ilitie s . The very
iact that you are free to lend according to the d ic tate s of
your conscience, thai; no stormtrooper comes swaggering into
your kitchen to demand your money -- the very fact that you
are free adds the more weight to your re sp o n sib ility ,
w i
know now what th is war is going to cost this year.
e know about how many planes and tanks and ships we’l l need.
S* know approximately how many men we w ill have in our armies
and how much equipment we’l l have to provide for them,.
_ ' We
those things because our days of guesswork are
over, We know exactly what we are going to do and how we’re
Froj? ?°7
we are
t0 d0 tke Planning
b n J ^ l atbacklnf ! And 1 fervently hope that we can continue
to work out our financing plans together and keep them on a 1
voluntary basis. But, in the fin a l analysis, that is'u p to
you -- the American people.
TREASURY DEPARTMENT
W ashington
POR IMMEDIATE RELEASE
The T re a su ry D epartm ent announced to d a y t h a t
M. Hampton M agruder o f B a ltim o re , M aryland, has r e
s ig n e d a s C o l le c to r x>f I n t e r n a l Revenue f o r th e
D i s t r i c t o f M arylanat/T "Thb rWoignaiyi'ew i'g e f f e c t i v e
1 ..J n n n
W 4 .
la n d in g ttoiOi a p p o in t mew
...
A. ______
P ark ?
R a sin , A d m in is tra tiv
iv e A s s is ta n t^ t o th e C o lle c to r,.h a *
,
A
\ f l-,
ha an nagagim^"
dagiffwafrefl A
t c tin g C o l le c to r f o r th e d i s t r i c t ,
w hich in c lu d e s M aryland and th e D i s t r i c t o f Columbia
1 (<p *.
[i—
H r
TREASURY DEPARTMENT
W ashington
i l ' L
FOR IMMEDIATE RELEASE
The T re a su ry D epartm ent announced to d a y t h a t
M. Hampton M agruder o f B a ltim o re , M aryland, has r e
sig n e d a s C o l le c to r o f I n t e r n a l Revenue f o r th e
D i s t r i c t o f M aryland b ecau se o f i l l h e a l t h .
__ , a d m in is t r a tiv e A s s is ta n t to th e
C o lle c to r in ch a rg e o f th e W ashington o f f i c e , w i l l
become A ctin g C o lle c to r f o r th e d i s t r i c t , which i n
c lu d e s M aryland and th e D i s t r i c t o f Colum bia, on
June 16.
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE.
S a tu rd a y , June 12 , 1943.
P re ss S e rv ic e
No. 37-6
The T re asu ry D epartm ent announced to d ay th a t M. Hampton
M agruder of B a ltim o re , M aryland, has r e s ig n e d as C o lle c to r
o f I n t e r n a l Revenue f o r th e D i s t r i c t o f M aryland b ecause
o f i l l h e a lth .
The r e s ig n a tio n i s e f f e c t i v e June 1 5 .
A. P arks R a sin , A d m in is tra tiv e A s s is ta n t to th e Col
le c to r , in charg e o f th e W ashington o f f i c e , w ill become
A ctin g C o lle c to r f o r th e d i s t r i c t , which in c lu d e s M aryland
and th e D i s t r i c t of Columbia, on June 1 6 .
-0 Q 0 -
TREASURY DEPARTMENT
Washington
Press Service
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday. June 15. 1943.
3 7 ' 7
The Secretary of the Treasury announced la st evening that the tenders for #1 >000,000,00c
or thereabouts, of 92-day Treasury b ills to be dated June 16 and to mature September 16,
1943, which were offered on June 11, 1943# were opened at the Federal Reserve Banks on
June 14.
The details of this issue are as follows:
Total applied for - $1,405,213,000
Total accepted
- 1,000,540,000
(includes $79,106,000 entered on a fixed-price
basis at 99.905 and accepted in fu ll)
Range of accepted bids:
High
Low
Average price
j
- 99.910 Equivalent rate of discount approx. 0,352% per annum
- 99.904
«
* ' •
"
"
0,376% "
"
-9 9 .9 0 5
"
» « «
«
0.374* "
"
(61 percent of the amount bid for at the low price was accepted.)
Federal Reserve
Bank
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
$
42,563,000
847,065,000
54,523,000
50,887,000
30,484,000
22,195,000
173,054,000
46,849,000
7,746,000
26,472,000
23,485,000
79.890.000
» 35,309,000
535,584,000
44,517,000
44,823,000
26,620,000
21,809,000
128,848,000
30,754,000
7,333,000
24,149,000
23,068,000
77.726.000
#1,405,213,000
$1,000,540,000
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
T u es d ay , J u n e 1 5 , 1 9 4 5 .
P ress S ervice
No* 37-7
The S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t
. t e n d e r s f o r <$>1 , 000 , 000 , 000 , o r t h e r e a b o u t s ,
evening t h a t t h e
o f 92 - d a y T r e a s u r y b i l l
t o b e d a t e d J u n e 16 a n d t o m a t u r e S e p t e m b e r 1 6 , 1943, w h i c h w e r e
o f f e r e d on J u n e 1 1 , 1943* w e r e o p e n e d a t t h e F e d e r a l R e s e r v e Banks
on J u n e 14*
,
The d e t a i l s o f t h i s
issu e a re as fo llo w s:
T o ta l a p p lie d fo r - $ 1,405,213,000
T o tal accepted
- 1 , 0 0 0 , 5 4 0 , 0 0 0 ( i n c l u d e s $ 7 9 ,1 0 6 ,0 0 0 en
t e r e d on a f i x e d - p r i c e
b a s i s a t 99 > 9 Op a n d a c
cepted in f u l l )
Ra ng e o f a c c e p t e d , b i d s :
H ig h
_
Low
j
- 99*910 E q u i v a l e n t r a t e o f d i s c o u n t a p p ro x , 0,352$ p e r
^
annum
- 99.904
w
n
»
«
w
0 , 376 $ p e r
annum
Average
p r i c e - 99*905
fT
”
»
”
0.374$ p e r
annum
('61 p e r c e n t o f t h e amoun t 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 , )
Federal R eserve
Bank __________
To t a l
A p p lie d For
T otal
A ccepted
Boston
New Yor k
P h iladelphia
Cleveland
Richmond
A tlanta
Chicago
S t . Louis
M inneapolis
Kansas C i t y
B alias
San F r a n c i s c o
$
42,563,000
847.065.000
54,523*000
50.887.000
30.484.000
22.195.000
173.054.000
46.849.000
7,746,000
26.472.000
23.485.000
79.890.000
$ 35, 3 0 9 . 0 0 0
535, 5 8 4 . 0 0 0
$1,405,213,000
$1,000,540,000
TOTAL
-oOo-*
44, 5 1 7 .000
44, 823.000
26, 620., 000
21 , 809,000
128, 848,000
30, 7 5 4 . 0 0 0
7, 3 3 3 . 0 0 0
24, 1 4 9 . 0 0 0
23, 0 6 8 . 0 0 0
77, 7 2 6 , 0 0 0
TREASURY DEPARTMENT
FISCAL SERVICE
BUR EAU O F AC CO UNTS
WASHINGTON
O F F IC E O F T H E C O M M IS S IO N E R
June 7, 19^3.
TO MR.
During the month of May, the following market
transactions took place in direct and guaranteed securi
tie s of the Government!
Purchases............................ $
....................................
35.156,000
Net sales ............. $35.156,000
FqgyiCTORY
BUY
U N IT E D
STA TES
WAR
^BONDS
AND
i STAMPS
TREASURY DEPARTMENT
W ashington
3
7 -
P ress S ervice
No. 3 ^ - 7 2 .
FOR IMMEDIATE RELEASE,
r 1*5— 19*1 3t
Q j u u ^ T^r. / 9 Y J
D u r i n g t h e month o f
19^3 > m a r k e t t r a n s a c
t i o n s i n d i r e c t and g u a r a n t e e d s e c u r i t i e s o f t h e
G o v e r n m e n t , f o r T r e a s u r y i n v e s t m e n t and o t h e r a c c o u n t s
/S ~ C ,o o o /
r e s u l t e d i n n e t ftH q sstesss o f
, S ecretary
Morgenthau announced to d a y .
-oOo-
/
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T uesday , June 1 5 , 19^1 .
P re s s S e rv ic e
■No. 37-S
D uring th e month p f May 191*3,. m arket t r a n s
a c tio n s in d i r e c t and g u a ra n te e d s e c u r i t i e s of
th e Government f o r T re a su ry in v e stm e n t and o th e r
a c c o u n ts r e s u l t e d in n e t s a l e s o f # 35, 156, 000,
S e c r e ta r y M orgenthau announced to d a y ,
3 7 ' 7
R andolph E. P a u l, G en eral C ounsel f o r th e T re a su ry
D ep artm en t, to d a y I s s u e d t h e f o llo w in g s ta te m e n t:
9®
■
I t was ch arg ed to d a y on th e f l o o r o f th e
House t h a t c i r c u l a r s have r e c e n t l y been d i s
t r i b u t e d s o l i c i t i n g s u b s c r i p tio n s from banks t o
a Tax S e r v ic e " p u b lis h e d by R andolph P a u l, t h e
G en e ra l C o u n sel f o r t h e T re a su ry D epartm ent and
Jacob M o rten s, J r . *
T h is c h a rg e was fo llo w e d by
a c r i t i c i s m o f me a s a " h ig h T re a s u ry o f f i c i a l
engaged i n such an e n t e r p r i s e . "
I have no f i n a n c i a l o r o th e r I n t e r e s t i n
"C o o rd in a to rs* C y c lo p ed ic Tax S e rv ic e " t h e pub
l i c a t i o n r e f e r r e d t o , on th e c i r c u l a r o f which
my name a p p e a rs and t h e u s e o f my name I n th e
c i r c u l a r was c o m p le te ly u n a u th o r is e d .
o f y e a r s ago — a lo n g
A number
tim e b e f o r e e n t e r in g th e
Government s e r v i c e In December, 1941 — 1 made
arra n g e m e n ts w ith Mr. Martens and C a lla g h a n &
Company to w ithdraw from f u r t h e r p a r t i c i p a t i o n
in P a u l and Martens "Law o f F e d e r a l Income Tax
a t i o n " , o r i g i n a l l y p u b lis h e d by C a lla g h a n &
Company i n 1934.
U nder my arran g em en t any f u r t h e r
r e v i s i o n o f t h i s s e t o f volumes was n o t t o u s e my
name, and th e tw e lv e volume "Law o f F e d e r a l Income
T a x a tio n " p u b lis h e d by C a lla g h a n & Company u se d
o n ly t h e name o f Mr. M e rte n s.
S in c e t h a t tim e , I
have had no r e l a t i o n w ith t h a t p u b lic a t io n o r
_______ any s e r v i c e d e riv e d from i t »
«i
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T u e s d a y , J u n e 1 5 , 1 9 L3
r r e s s S e rv ic e
No. 3 7 -9
R a n d o l p h E. P a u l , G e n e r a l C o u n s e l f o r t h e T r e a s u r y De,
p a rtm e n t, today is s u e d th e fo llo w in g sta te m e n t:
I t was c h a r g e d t o d a y on t h e f l o o r o f t h e
House t h a t c i r c u l a r s h a v e r e c e n t l y b e e n d i s t r i b
u t e d s o l i c i t i n g s u b s c r i p t i o n s from b a n k s t o a
T ax S e r v i c e “p u b l i s h e d by R a n d o l p h P a u l , t h e
G e n e r a l C o u n s e l f o r t h e T r e a s u r y D e p a r t m e n t and
J a c o b M e r t e n s , J r , ” T h i s c h a r g e was f o l l o w e d by
a c r i t i c i s m o f me a s a “h i g h T r e a s u r y o f f i c i a l
e n g ag e d i n s u c h an e n t e r p r i s e . ”
^
h a v e no f i n a n c i a l o r o t h e r i n t e r e s t i n
c o o r d i n a t o r s 1 C y c l o p e d i c T ax S e r v i c e ” t h e p u b l i
c a t i o n r e f e r r e d t o , on t h e c i r c u l a r o f w h i c h mv
name a p p e a r s and t h e u s e o f my name i n t h e c i r
c u l a r was c o m p l e t e l y u n a u t h o r i z e d ,
A number o f
y e a r s ago
a l o n g t i m e b e f o r e e n t e r i n g t h e Gov
e r n m e n t s e r v i c e i n December, 19 ^ 1 —- I made a r
r a n g e m e n t s w i t h Mr. M e r t e n s a n d C a l l a g h a n & Comoany
t o w i t h d r a w f ro m f u r t h e r p a r t i c i p a t i o n i n P a u l and
M e r t e n s Law o f F e d e r a l Income T a x a t i o n ” , o r i g i n a l l y p u b l i s h e d by C a l l a g h a n & Company i n 1 9 3 b
u n d e r my a r r a n g e m e n t any f u r t h e r r e v i s i o n o f t h i s
s e t _ o f v o l u m e s was n o t t o u s e my name, a n d t h e
t w e l v e volume "Law o f F e d e r a l Income T a x a t i o n ”
p u b l i s h e d by C a l l a g h a n & Company u s e d o n l y t h e
name o f Mr, M e r t e n s .
Since t h a t tim e , % have had
no r e l a t i o n w i t h t h a t p u b l i c a t i o n o r any s e r v i c e
d e r i v e d fro m i t , *
ff
*
—0O0—
'
p„ o , . . . of . » ».»*.•
-
« > > " ■ " > ' * • “ P*™“ “ “ 1
pay the withholding tax?
t t a t n i B that you have been setting aside a part of your pay
to meet quarterly installments of your income tar.
^
with-
holding tax is merely a pay-as-you-go,or installment-method
paying your income t a x , instead of in a lump sum.
It should
make it easier for you to huy additional War Bonis.
ft
'/<& G o '
Qj-—I t; th e lyithho ld 'iifg 1
■addir U u nal 1w f * m
a»
*- * « &
«tPAlmaniu o 3 M W " > ^ 0U,,,ea
Does this newtax mean people will not have to pay out money for
income tax on next March 15th, 1944?
A. Yes, in case the amount of tax withheld fromwage payment
equals or exceeds the amount of income tax liability
reported onthe annual return.
Does this meanthat I won’t have to make out an income tax report
next March?
A. No. Youwill be required to file a return on the usual form.
Are there any kindsJof workers who are exempt fromwithholding?
A. Yes, for certain specified classes which include members of
the armed forces, agricultural labor, domestic servants, and
ministers of the gospel.
Howabout people with big wages? Are they going to get by with
only a 20 percent tax?
A. No. They also have to make quarterly payments of tax in
addition to the amounts withheld.
Howabout salaries, bonuses and commissions? Is withholding
required?
A. Yes, since “wages’1means all remuneration for services by
an employee.
Now about people with income from stocks, bonds, mortgages, etc.?
Who)withholds from them?
A. There is n^
income frombonds, mortgages, dc.,
Income must make a special return
but those ]
and pay the tax- quarterly on such income
■ *?
Do I have to wait until the end of January to knowhowmuch of ny wages
myemployer holds out?
A. Yes,) unless your services with your employer are terminated before
the/end of the calendar year.
miat happens if the receipt the employer gives me gets lost or destroyed?
A. You should make application to your employer for a copy of the
receipt*
i
*
&
I
f.
i
I
i
^
Does it make any difference if I change jobs several times during the
year?'
A. No* Each employer is required to withhold the tax fromwage
payments made to you.
What advantages are there to(raeJin this withholding?
A. Youwill be paying on your income and Victory tax as you
receive your wages.
i
Z L itJ p )
a i ^ T
" p /tf
^
as
fy v
< jo
Is the withholding tax an additional tax?
The withholding tax is merely an easier way of paying your
regular annual income tax: on a pre-payment pay-as-you-go basis.
. Q,.
I
itam a married man with one child#o*^ am now putting 10 percent
of my pay in war bonds and 5 percent, after subtracting with-
I
holding exemption, for the Victory tax.
How can I pgy the addi
tional twenty-percent withholding tax on top of that fifteen
percent and still have enough to live on?
|[
fA*
In the first place your twenty-percent withholding tax includes
your Victory tax.
If you are married and have one child, your
exemptions will bring your tax down to approximately 8 percent.
For instance, if your salary or wage is $50 per week, your withr
holding tax will be approximately $4 per week, and instead of
<
paying an annual income tax of approximately $212 in a lump sura,
you are paying it at the rate of $4 weekly.
t
"
1
•
r—
Suppose when I make my return next March I find my employer has
withheld more than enough money to cover my tax. Will the excess
be refunded to me?
A.
It will either be refunded to you or credited against other
income taxes due from you.
Suppose ny employer withholds tax from my wages, but does not turn it
over to the Government. What protection have I?
A.
The employer is liable for the payment of the tax and must furnish
the employee with a written statement showing the amount of tax
deducts^ Penalties are imposed upon employers for failure to
make (andptile returns or pay the tax within the time prescribed by
law. TEe employee is amply protected.
Then the payment of l /4 I made 131 ^rch, added to the forgiveness
of 3/4 does not free me from paying another quarterly installment on
or before June 15th?
A*
No*
You are still required to make that June 15th payment*
Yihat happens to the money my employer withholds?
A.
The money withheld from your wages is paid by your employer to
the United States Treasury. The amount withheld from you stands
to your credit at the Treasury against the amount you owe on
Income and Victory tax*
Does the employer have the use of ray money that he has withheld?
A.
No. The amount of tax withheld from your wages by your
employer is a special fund in trust for the United States*
■y^hat proof have I that I have that much credit against ray taxes?
A.
Shortly after the close of the year or termination of your
employment you will be furnished a receipt by your employer
showing the amount of the tax deducted and withheld from
your pay.
eA<_^JScx^■ PISS— _
r
FTufea#*»f~
5W
p M
------
*e*X fl? .
-----— —
"
/«
"
„
79h a t h ap p en s i f t h e amount o f ny ex em p tio n ch an g es d u rin g t h e y e a r?
A
A.
.................
You s h o u ld f u r n i s h y o u r em p lo y er a new w ith h o ld in g ex em p tio n
c e r t i f i c a t e w ith in 10 d ay s o f su ch change i n o r d e r t h a t y o u r
em ployer may g iv e e f f e c t ^ t o t h e change i n ^ g ^atu s ^at t h e-r^fea r l j e s t
jf
. d a te r e q u ir e d b y l
a
w
— —-----—^ V - ---------——
^
I s my em p lo y er r e q u ir e d t o w ith h o ld e x a c t l y 20 p e r c e n t o f my p ay above
my ex em p tio n ?
............. .................— — r iwl r- *—
"0.
'
km
\s^\
--- ----------
||-
...............
No* J o u r em p lo y er may e l e c t t o u s e th e ’’Wage B ra c k e t T a b le s ”
p ro v id e d b y la w w h ich v a r y s l i g h t l y from e x a c t co m p u tatio n s a t
20 p e r c e n t . T hese t a b l e s s e t d e f i n i t e am ounts t o be w ith h e ld
from e a c h p a y . F o r ex am p le, i n t h e c a s e o f m a rr ie d em ployees
w ith t h r e e d e p e n d e n ts , whose w eek ly wage i s anyw here b etw een
f i f t y and s i x t y d o l l a r s , th e em ployer i s a u t h o r i z e d t o w ith h o ld
a f l a t am ount o f $ 2 .6 0 p e r "week, i n s t e a d o f r e q u i r i n g him t o
f i g u r e th e e x a c t amount fp ij eac h i n d i v i d u a l em p lo y ee. The law
g r a n ts t h e em ployer th iS M ^ sh o rt—c u t ” m ethod i n o r d e r t o s im p lif y
h i s jo b o f com puting t h e amount to be w ith h e ld f o r each in d iv id u a l
w o rk e r. However, c a s e s w here ’’Wage B ra c k e t T a b le s ” a r e u s e d , the
am ount o f t a x w ith h e ld w i l l b e o n ly s l i g h t l y d i f f e r e n t from an
e x a c t co m p u ta tio n a t 20 p e r c e n t .
I s n ' t a l a r g e p a r t o f l a s t y e a r ’ s income t a x c a n c e ll e d o r " f o r g iv e n ”?
A.
Is V i s
■
Yes, from 75 p e r c e n t t o 100 p e r c e n t, d e p e n d in g upon th e amount
o f y o u r ta x e s f o r t h e y e a r s 1942 and 1 9 4 3 .
How ab o u t tfa rf.p a rt w hich i s n o t c a n c e lle d ?
A.
The p a r t w hich i s n o t c a n c e ll e d you s t i l l owe to th e 'Government.
You p ay i t i n e q u a l p a r t s in March 1944 and March 1 9 4 5 .
S in c e 3 / 4 o f l a s t y e a r 's t a x e s a r e c a n c e ll e d and I p a id one q u a r t e r
t h i s p a s t M arch, d o e s n ’t t h a t c l e a r me up bn my 1942 ta x ?
A.
No. Your q u a r t e r l y payment o f March 15 a p p l i e s on y o u r 1943 ta x .
So d o es t h e Ju n e 15 t h paym ent. I f p a r t o f y o u r 1942 t a x i s ”un o i1t hhe
o v e rn m e n ^t^ Payment
o f one
f o r gg iv e n "” you s t i l l owe i t ttoy
e G
Government
Payir
h a l f o f t h a t b a la n c e i s d u e/lm March 1944> and)p.ayment o f th e
o t h e r h a l f i n March 1945* (
>9 V 3
r *
/
Suppose I am m a r r ie d , hav e two c h i l d r e n , and
how much pay w i l l I r e c e iv e a f t e r th e w ithho!
d e d u c te d ?
A.
$ 5 4 .0 0 a w eek w t a x h a s b een
You w i l l r e c e i v e $ 5 0 .2 0 i f y o u r em ployer e l e c t s t o u s e t h e wage
b r a c k e t w ith h o ld in g t a b l e p ro v id e d b y la w , o r $ 50.40 i f y o u r
em p lo y er com putes t h e t a x a tf ^ O /p e r c e n t o f y o u r wage l e s s
ex em p tio n s •
I f my h u sb an d h a s f i l l e d o u t an EMPLOYEE'S WITHHOLDING EXEMPTION
CERTIFICATE and h a s c la im e d h a l f o f th e p e r s o n a l exem ption and
exem p tio n f o r one d e p e n d e n t, and a f t e r a c o u p le o f m onths i s d r a f t e d ;
can t h e w if e c la im th e f u l l p e r s o n a l m a rr ie d ex em p tio n an d t h e
d ep en d en t c h i l d 's ex em p tio n ?
The W ith h o ld in g 'Exem ption C e r t i f i c a t e f i l e d by th e h u sb an d can be
ch an g e d . Where t h e r e i s a change o f s t a t u s , a new C e r t i f i c a t e
s h o u ld be f u r n is h e d th e em p lo y er, w h ich may ta k e e f f e c t , a t th e
e m p lo y e r's e l e c t i o n , w ith r e s p e c t to any paym ent o f wages made on
o r a f t e r t h e d a te t h e C e r t i f i c a t e i s f u r n is h e d ; b u t in no ev en T
l a t e r th a n t h e f i r s t paym ent o f w ages made on o r a f t e r th e f o llo w in g
f i r s t day o f J u ly o r J a n u a r y w hich o c c u rs a t l e a s t 30 days a f t e r
t h e C e r t i f i c a t e i s f u r n is h e d to th e em p lo y e r.
/
"
fy.Q How much will
A*
- ? M
/fc V o o G o
I
■■
/, Pay?
There will fee withheld from your pay an amount equal to
20 percent of the excess of your wages over your family status
withholding exemption, or 3 percent of the excess of your wages
over the Victory tax withholding exemption, whichever is greater.
Q. What do you mean by exemption?
A.
The amount of your wages which is exempt from the withholding
tax.
What does that amount to?
A.
Q
^
On an annual basis, $624.00 for single persons; $1,248.00 for
married persons; and $312.00 for each dependent. On a weekly
basis, this is $12.00 for a single person; $24.00 for a married
person; and $6.00 for each dependent.
H0w does my employer know how much of my wage is exempt from with—
holding?
Because he gives you a slip of paper called WITHHOLDING EXEMPTION
CERTIFICATE. On it you indicate whether you are single or
married, how many dependents you have, and so forth. Then you
sign the Certificate and return it to your employer. From that
information he can tell exactly how much of your pay is exempt
from withholding, and how much bears the 20 percent tax.
A.
(3
What if I do not han
A.
one of these Certificates to my employer?
Then he is required by law to withhold the 20 percent tax from all
of your wage without any exemption. So it will save you money to
be sure to turn one in.
<KV
,
Do I turn my Withholding Exemption Certificate in to my foreman, to
the payroll department, or where?
*
1
A.
The Withholding Exemption Certificate must be given to your
employer, or some one designated by him to accept it.
Suppose b o th my w if ee and
and I a r e em ployed
.
The p e r s o n a l ex em p tio n
one may c la im i t a l l .
e x e m p tio n .
How does the exemption work?
F a c ts ab o u t
"PAY-AS-YOU-GO”
I s th e " w ith h o ld in g ta x " a new t a x o r an a d d i t i o n a l ta x ?
N e ith e r.
I t i s a new " ^ ^ f e s - y o u - g o " m ethod o f c o l l e c t i n g
t h e F e d e r a l Income and V ic to r y T ax .
The am ount w ith h e ld goes
to w a rd p a y in g y o u r r e g u l a r income t a x , in c lu d in g t h e V ic to r y Tax.
Q#
Why
A.
i s i t c a l l e d a W ith h o ld in g Tax?
B ecause i t i s d e d u c te d and w ith h e ld b y t h e em p lo y er from
th e w ages p a id to h i s em p lo y ees.
3. &
I s t h l s th e " p a y -a s -y o u -g o " t a x w e 'v e b een h e a r in g so much a b o u t?
A.
M3
Does t h i s in c lu d e my V ic to r y t a x paym ent, o r i s t h a t e x t r a ?
A.
^ ^
Yes.
The am ount w ith h e ld in c lu d e s th e V ic to ry t a x .
T ^ e s ? * “ °1Ude
A.
The am ount w ith h e ld d o es n o t in c lu d e S o c ia l S e c u r i t y T a x e s.
When d o es
A.
T ax es> f o r m e r ly c a l l e d S o c ia l S e c u r i t y
i t sta rt?
The new "W ith h o ld in g Tax" t a k e s
*
i s a p p l i c a b l e t o a l l w ages m i d ®ff e c t
Ju^ 1 > 1 9 4 3 , and
f o r w ages p a i d f o r p a ™ n
° r a f t e r t h a t d a *e except
d a te .
P yTO11 p e n o d s commencing b e f o r e t h a t
^ > ^ (D
m
Q*
Does th e w ith h o ld in g mean t h a t tw e n ty p e r c e n t o f my p ay check
w i l l be ta k e n o u t e a c h p ay day?
A. t E xem ptions b r in g th e amount flo w e r, even
A
w ith no d ep en d en ts*
th e s i n g l e p e r s o n
For ( I n s ta n c e , in th e c a se o f a m a rrie d man
w ith two d e p e n d e n ts draw ing $50 p e r week, th e w eek ly p e r c e n ta g e
o f w ith h o ld in g am ounts to l e s s th a n 6 p e rc e n t*
In o th e r w ords thj
man p a y s a p p ro x im a te ly $2*80 p e r w eek.
Lany make i t
&n
-pay the
the*
^ 8^
L a s t March I p a id one q u a r t e r o f t h e income t a x l e v i e d a g a i n s t 19Z.2
in co m e, $15*80. 'What h ap p en s t o t h a t ?
A.
Q. *
The f i r s t q u a r t e r o f t h e incom e t a x l e v i e d f o r 1942 an d p a id
i n March 1 9 # 3 /w ill
be t r e a t e d a s p a r t paym ent o f income
t a x f o r 1943V
h W w QU&r^vh
A.
/
■**-T UrUA
t
Q.
tU .
j2jl
tiJLAcfittf
/£~&Zy.'
How can I m a in ta in my r e g u l a r p u rc h a s e o f War Bonds th ro u g h
th e P a y r o l l S av in g s P la n and a t th e same tim e p ay o u t th e *
a d d i t i o n a l w ith h o ld in g tax ?
A*
t
I t s h o u ld be L*ui.iric“'lander th e w ith h o ld in g t a x sy stem tiwwi a t
Ui
-4rusC
p r e s e n t , s in c e th«xa..*i*ls...^na a d d t i o n a l ta x and- th e w ith h o ld in g
A
,
A
taxr:tn» m e re ly an i n s t a l l m e n t o r p a y -a s -y o u -g o m ethod o f p a y in g
y o u r r e g u l a r a n n u a l income ta x .
TREASURY DEPARTMENT
W ashington
Note to e d i t o r s :
The a tta c h e d f i v e s e t s of q u e s tio n s
^ p r o v is io n s
*
and answ ers e x p l a i n i n g o f
th e C u rre n t Tax
Payment a f f e c t i n g most o f y o u r r e a d e r s a re f o r r e le a s e
b e g in n in g Mongav. June 2 1 . m 3 , and d a l ly t h e r e a f t e r
a c c o rd in g t o t h e i r number#
TREASURY DEPARTMENT
W ashington
N ote t o e d i t o r s :
The a t t a c h e d f i v e s e t s o f q u e s tio n s
and an sw ers e x p l a in in g p r o v is io n s o f th e C u r r e n t Tax
Payment Act o f 1943 a f f e c t i n g m ost o f y o u r r e a d e r s a r e f o r
r e l e a s e b e g in n in g Mond ay , J u n e 3 1 . 1943. an d d a i l y t h e r e a £ t e r a c c o r d in g to t h e i r num ber.
J
/
3 7 -1 0
No, 1
P a c ts a b o u t
"PAY-AS-YOU-GO"
Q,
I s th e " w ith h o ld in g t a x " a new t a x o r an a d d i t i o n a l ta x ?
A,
N e ith e r . I t i s a new " p a y -a s -y o u -g o " m ethod o f c o l l e c t i n g th e F e d e r a l
Income and V ic to r y Tax. The am ount w ith h e ld goes to w ard p ay in g your
r e g u l a r income t a x , in c lu d in g t h e V ic to r y t a x ,
Q,
Why i s i t c a l l e d a W ith h o ld in g ta x ?
A.
B ecause i t i s d e d u c te d and w ith h e ld by t h e em p lo y er from th e wages
p a id to h i s em p lo y ees.
Q.
I s t h i s th e " p a y -a s -y o u -g o " t a x We’ve b e e n h e a r in g so much ab o u t?
A*
Yes,
Q.
Does t h i s in c lu d e my V ic to r y t a x paym ent, o r i s t h a t e x tr a ?
A.
The amount w ith h e ld in c lu d e s th e V ic to r y t a x .
Q.
Does i t in c lu d e Employment T ax es, fo r m e r ly c a l l e d S o c ia l S e c u r ity
T axes?
A.
The amount w ith h e ld d o es n o t in c lu d e S o c ia l S e c u r i t y T axes.
Q.
When d o e s i t s t a r t ?
A.
The new "W ith h o ld in g Tax" ta k e s e f f e c t on J u ly 1, 1943, and i s
a p p l i c a b l e t o a l l w ages p a id on o r a f t e r t h a t d a te e x c e p t f o r
w ages p a id f o r p a y r o l l p e r io d s commencing b e f o r e t h a t d a t e .
Q.
Does t h e w ith h o ld in g mean t h a t tw e n ty p e r c e n t o f my p ay check w i l l
be ta k e n o u t eac h p ay day?
A.
No. E xem ptions b r in g th e amount c o n s id e r a b ly lo w e r, even f o r th e
s in g le T^person w ith no d e p e n d e n ts . F o r i n s t a n c e , i n t h e c a se o f
a m a rr ie d man w ith two d e p e n d e n ts d raw in g $50 p e r w eek, t h e w e ek ly
p e rc e n ta g e o f w ith h o ld in g am ounts to l e s s th a n 6 p e r c e n t, I n o th e r
w ords t h i s man p ay s a p p ro x im a te ly $ 2 ,8 0 p e r w eek.
No. X (C * n ti$ u e d )
Q.
L a s t March I p a id one q u a r t e r o f th e income t a x le v ie d against 1942
incom e, $15,80* What h ap p en s to t h a t ?
?he f i r s t q u a r t e r o f th e income t a x le v ie d f o r 1942 and p a id i n
March 1943 w i l l be t r e a t e d as p a r t paym ent o f income t a x f o r 1943*
Haw ab o u t t h e June 1 5 th in s t a l l m e n t ?
A#
fh e June 1 5 th in s t a l l m e n t w i l l alii© be t r e a t e d as p a r t paym ent * f th e
1943 t a x ,
Q.
J ltw ^ a n I m a in ta in my r e g u la r p u rc h a s e o f War Bonds th ro u g h th e P a y r o ll
$ a v ih g s P la n hnd a t t h e same tim e pay n u t th e a d d i t i o n a l w ith h o ld in g
ta x ?
A#
I t sh o u ld be a s e a s y u n d er t h e W ith h o ld in g t a x system a s a t p r e s e n t^
&ince t h i s i s n o t an a d d i t i o n a l t a x b u t m e re ly an i n s t a l l m e n t # r
pay-as*yOu*g© m e th fd o f p a y in g y n u r r e g u l a r a n n u a l income t a x .
No. .2
F a c ts aboi^t
'^AYrASrYOU-Ge^
H
owm
uch will m
y employer hold out of m
y pay?
A.
of y S fw S e fo w f^ r fa S lfT t
or 3 peroent of t
h
e
ZIT££
ing exemption, whichever is greater?
*° 20 peroent of
taX Wlthhold*
Q»
W
hat do you m
ean by exemption?
A.
The am
ount of your wages *ioh is exempt fromthe withholding tax.
W
hat does that am
ount to?
p^r?n?nand $?2?0$f!r’°a h*I single personsj *1,848,00 for married
#12 00 for? S i ?
V
° l °n a r Skly baSiS’ this is
each dependent!
’ $ * f°r * narrled Per50n-' » d *6.00 for
Q*
H
owdoes m
y employer knowhowm
uoh of m
y wage is exempt from withholding
A.
CERTi?fiTP&V^ ? U&S? P °f Paper oalled W
IT
H
H
O
L
D
IN
GE
X
E
M
PT
IO
N
CERTIFICATE. O
n it you indicate whether you are sine-le ttn.tt-1
Gerti?L?Penf nt: y0U have’ and S0 fort^
h
ec
o!f
te? exactly
* 7 h7
t u\°
yv
°U
rnn
6r
mpl0ye•r'
ne
an texl
owl m
ch <
Pv
and howm
uch bears' the 20 perefnt tlx! 7
^hen
sign the
'
Fro- , th
at
iSoriktiO
n
_
® °B
; WithholdinS.
»mt if I do not hand in one of these Certificates to m
y employer?
Then he is required by law to withhold the 20 peroent tax from all
£ I Z
Z
Z
f Z
Z
i Z
eXempti0n’ S° « *U save you money to
C e r tif ic a te ln to ^
t
o
°n*
No, 2 (C o n tin u e d )
The W ith h o ld in g E xem ption C e r t i f i c a t e m ust be g iv e n to y our em p lo y er,
o r some one d e s ig n a te d by him to a c c e p t i t .
Suppose b o th my w ife and I a r e em ployed.
How d o es th e ex em p tio n work?
The p e r s o n a l ex em p tio n may be d iv id e d and each ta k e o n e - h a l f , o r one
may c la im i t a l l . Each h a s th e same V ic to r y t a x w ith h o ld in g e x em p tio n .
Suppose I am m a r r ie d , have two c h i l d r e n , and e a r n $ 5 4 ,0 0 a week - how '
much pay w i l l I r e c e iv e a f t e r t h e w ith h o ld in g , t a x h as b een d e d u c te d ?
You w i l l r e c e iv e $ 5 0 ,2 0 i f you r em p lo y er e l e c t s to u se th e wage b r a c k e t
w ith h o ld in g t a b l e p ro v id e d by law , o r $ 5 0 ,4 0 i f y o u r em ployer com putes
th e t a x a t 20 p e r c e n t o f y o u r wage l e s s exem ptions*
I f my husband h as f i l l e d o u t an EMPLOYEE'S WITHHOLDING EXEMPTION
CERTIFICATE and h as c la im e d h a l f o f t h e p e r s o n a l ex em p tio n and
ex em p tio n f o r one d e p e n d e n t, and a f t e r . a co u p le o f m onths i s d r a f t e d ;
can th e w ife c la im th e f u l l p e r s o n a l m a rr ie d ex em p tio n and th e
d e p e n d e n t c h i l d ’ s exem p tio n ?
The W ith h o ld in g E xem ption C e r t i f i c a t e f i l e d by th e husband can be
ch anged. Where t h e r e i s a change o f s t a t u s , a new C e r t i f i c a t e
s h o u ld be f u r n is h e d th e em p lo y er, w hich may ta k e e f f e c t , a t th e
e m p lo y e r's e l e c t i o n , w ith r e s p e c t t o an y paym ent o f wages made on
o r a f t e r th e d a te th e C e r t i f i c a t e i s f u r n is h e d ; b u t i n no e v e n t
l a t e r th a n th e f i r s t paym ent o f wages made on o r a f t e r th e fo llo w in g
f i r s t day o f J u l y o r J a n u a ry w hich o c c u rs a t l e a s t 30 days a f t e r
th e C e r t i f i c a t e i s f u r n is h e d to t h e em p lo y er.
F a c ts a b o u t
No, 3
"PAY-AS-YOU-GO"
th T
^
*** a“ ° U llt ° f my " w itl* o l d i n g ex em p tio n ” ch an g es d u rin g
You s h o u ld f u r n i s h y o u r em ployer a new w ith h o ld in g ex em p tio n c e r t i f i c a t e
w i t h i n IQ days o f su c h change i n o r d e r t h a t y o u r em ployer may g iv e
e f f e c t a t th e e a r l i e s t d a t e r e q u i r e d b y law t o t h e change i n y o u r
m a r i t a l s t a t u s o r th e num ber o f y o u r d e p e n d e n ts .
I s my em ployer r e q u i r e d to w ith h o ld e x a c t l y 20 p e r c e n t o f my p ay
above my ex em p tio n ?
F *
t \ J ° ^ T l ° y e r ? a y e l e c t to u se t h e 'm a Ze
T a b le s " p ro v id e d
by law w h ich v a r y s l i g h t l y fro m e x a c t c o m p u ta tio n s a t 20 p e r c e n t .
in e s e t a b l e s s e t d e f i n i t e am ounts to be w ith h e ld fro m ea c h p a y . F o r
exam ple, m th e c a s e o f m a rr ie d em ployees w ith t h r e e d e p e n d e n ts , whose
w eek ly wage i s anyw here b etw een f i f t y and s i x t y d o l l a r s , th e em ployer
^ t h h o l d a f l a t ^ m t o f $ 2 .6 0 p e r w eek, i n s t e a d o f
ThP i ^ ng^ h l ^ t ^ f lg U r ? th@ e x a c t a m o m t f ° r e a c h i n d i v i d u a l em p lo y ee.
ih e law g r a n ts th e em ployer t h i s " s h o r t - c u t " m ethod in o r d e r to
i
A°b ° f comPu t in g th e am ount to b e w ith h e ld f o r each
i n d i v i d u a l v o r k e r . H owever, c a s e s w here "Wage B ra c k e t T a b le s " a r e
u s e d , th e am ount o f t a x w ith h e ld w i l l b e o n ly s l i g h t l y d i f f e r e n t from
an e x a c t c o m p u ta tio n a t 20 p e r c e n t .
I s n ’t a l a r g e p a r t o f l a s t y e a r ’s incom e t a x c a n c e ll e d o r " f o r g iv e n " ?
1\ p ^r c e n *’ t o 100 p e r c e n t , d ep e n d in g upon th e amount o f y o u r
ta x e s f o r t h e y e a r s 1942 and 1 9 43.
y
How a b o u t t h a t p a r t w h ich i s n o t c a n c e lle d ?
The p a r t w h ich p.s n o t c a n c e ll e d you s t i l l owe to th e G overnm ent,
xou pay i t i n e q u a l p a r t s i n M arch 1944 and M arch 1945.
l a s t / e a r * s ta x e s a r e c a n c e ll e d and I p a id one q u a r t e r
t h i s p a s t M arch, d o e s n ’ t t h a t c l e a r me up o n my 1942 ta x ?
Your q u a r t e r l y paym ent o f M arch 15 a p p l i e s on y o u r 1943 t a x .
tb e
1 5 ?h paym en t ^ h i c h m u st be m ade. I f p a r t o f y o u r
1942 t a x ip u n f o r g iv e n " you s t i l l owe i t t o th e Government a s p a r t
^ e n t o f one h a l f o f t h a t b a la n c e i s
due i n M arch 1944, and paym ent o f th e o t h e r h a l f i n M arch 1945 ,
No,
No, 3 ( Con t i n ue d )
XA I made i n M arch, ad d ed to t h e f o r g iv e n e s s
on o r Abffoer e nj u n f
No.
You a r e s t i U
W i B g an ° t t e r q u a r t e r ^
in s ta llm e n t
r e q u i r e d t o make t h a t Ju n e 1 5 th pay m en t.
“W hat happens to th e money my em p lo y er w ith h o ld s ?
The money w ith h e ld fro m y o u r wages i s p a id b y y o u r em ployer to th e
U n ite d S t a t e s T r e a s u r y . The am ount w ith h e ld from you s ta n d s to y o u r
c r e d i t a t th e T r e a s u r y a g a i n s t th e am ount you owe on Incom e and
V ic to ry t a x .
Does t h e em ployer h av e th e u s e o f my money t h a t he has w ith h e ld ?
No, The am ount o f t a x w ith h e ld fro m y o u r w ages b y y p u r em ployer i s
a s p e c i a l fu n d i n t r u q t f o r th e U n ite d S t a t e s ,
W hat p r o o f have I t h a t I have t h a t much c r e d i t a g a i n s t my ta x e s ?
S h o r tly a f t e r th e c lo s e o f th e y e a r o r te r m in a t io n o f y o u r em ployment
you w i l l b e f u r n is h e d a r e c e i p t by y o u r em ployer show ing th e am ount
o f th e t a x d e d u c te d and w ith h e ld fro m y o u r p a y .
I s th e w ith h o ld in g ta x an a d d i t i o n a l incom e t a x l i k e th e V ic to ry
ta x ?
J
No. I t ' s a d e d u c tio n from y o u r p ay w hich goes to w ard p a y in g y o u r
r e g u l a r incom e t a x , i n c lu d in g th e V ic to r y t a x .
No.
F a c t s ab o u t
"PAY-AS-YOU-GO"
I s th § w ith h o ld in g t a x an a d d i t i o n a l ta x ?
No. The w ith h o ld in g t a x i s m e re ly an e a s i e r way o f p a y in g y o u r
r e g u l a r a n n u a l incom e t a x o n - a p re -p a y m e n t p a y -a s -y o u -g o b a s i s .
i . “ _ ! ‘I ^ r r i a d
w ith one c h i l d and am
P ?.
w ar b™ d s and 5 p e r e e n t , a f t e r
e x e m p tio n , f o r th e V ic to ry t a x . How . a n
tw e n ty -p e r e a n t w ith h o ld in g t a x on to p o f
s t i l l have enough to l i v e on?
v ic to ry ^ t a x .
now p u t t i n g 10 p e r c e n t o f
s u b t r a c t i n g w ith h o ld in g
I p a y th e a d d i t i o n a l
t h a t f i f t e e n p e r e e n t and
P^ Ce yo u r tw e n ty - p e r c e n t w ith h o ld in g t a x in c lu d e s y o u r
I f you a r e m a r r ie d and have one c h i l d , y o u r ex em p tio n s
i f ^ S ^ r 1*37
d° ^
aPPr o x im a te lY « p e r c e n t,. F o r i n s t a n c e ,
y o u r s a l a r y o r wage 4.6 $50 p e r wee k, y o u r w ith h o ld in g t a x w i l l be
a p p ro x im a te ly U p e r w eek, and i n s t e a d o f p a y in g an a n n u a l income
rate f f lf w S S y , y
** * *"*
^
are
“ at the
When I *uake my r e t u r n n e x t M areh 1 f i " d my em ployer h as
be r e f m d ^ t o me? 6n0U6h m° n e y t0 C° Ver ray t a x ‘
W iU * *
ex eass
S L 2 V S S ! L ? efunded to 70,1 or c re d ite d a g a in st ° th e r
oo vv ee rr ° to
to t h e G overnm ent.
m g e sI ?>
W hat p r o t efrom
c t i o nmyhave
n o t tu r n i t
t t e ' Z d w ! i “ l i a b l e f o r th e paym ent o f th e t a x and m u s t f u r n i s h
d e r in ^ tS 7 o
W l t t e n s ta te m e n t show ing th e am ount o f t a x
make -n ri’ f f enaX+:l9S ^
impoSed uP °n em p lo y ers f o r f a i l u r e to
f l l e . r e t u ^ s °r p a y th e t a x w ith i n th e tim e p r e s c r i b e d by
la w . The em ployee i s am ply p r o t e c t e d ..
Do I have to w a i t W t i l th e end o f J a n u a r y to know how much o f
wages my em ployer h o ld s o u t?
pm nio^°^ ^
n o ^ CQ o r reCQi p t u n le s s y o u r s e r v i c e s w ith your
em ployer a r e te r m in a te d b e f o r e th e end o f th e c a le n d a r y e a r .
No, 4. (C o n tin u e d )
W hat happe
d e s tro y e d ?
*“
'
r e c e i p t th e em ployer g iv e s me g e ts l o s t o r
You s h o u ld ma*e a p p l i c a t i o n t o y o u r em ployer f o r a copy 6£
tn e r e c e i p t #
S e Sy a a r ? ake
di"f f e r a n o e i f 1 change jo b s s e v e r a l tim e s d u rin g
tfo. Each em ployer i s r e q u i r e d to w ith h o ld th e t a x from wage
paym ents made to you*
b
What a d v a n ta g e s a r e th e r e t o me i n t h i s w ith h o ld in g ?
You w i l l be p a y in g on y o u r incom e and V ic to ry t a x a s you r e c e i v e
y o u r wages*
^
y
No* 5
Facts about
MPAY-AS—YOU-GO"
Q*
A,
Is the withholding tax an additional income tax?
withholdinf tax is an installm ent or pay-as-you-go method
of paying your regular annual income tax.
Q.
Does th is new tax mean people w ill not have to pay out money for
income tax on next March l£ th , 1944?
,
A.
Yes, in case the amount of tax withheld from wage payment equals
or exceeds the amount of income tax lia b ility reported on the
annual return.
•
Q*
next t o c h ? ^ 11 th a t 1
have to make out 0X1 income tax report
A.
No. You w ill be require** *» f ile a return on the usual form.
Q*
Are there any kinds of workers who are exempt from withholding?
A,
Yes, for certain specified classes which include members of the
armed forces, agricu ltu ral labor, domestic servants, and ministers
oi the gospel.
Q.
Bow about people with big wages? Are they going to get by with
only a 20 percent tax?
*
A.
Wo. They also have to make quarterly payments of tax in addition
to the amounts withheld.
How about salaries, bonuses and commissions? Is withholding
required?
6
A.
Yes, since "wages" means a ll remuneration for services bv an
employee.
"
No* 5 (C o n tin u e d )
H7 ?b°,UJ? p e o p le
i n come from s t o c k s , b o n d s, m o rtg a g e s ,
e t c , ? Who w ith h o ld s fro m them?
-& 9
T here i s no w ith h o ld in g on incom e from b o n d s, m o rtg a g e s , e t c , , b u t
th o s e r e c e i v i n g s u c h incom e m u st make a s p e c i a l r e t u r n and p ay th e
t a x q u a r t e r l y on su c h in co m e,
1 ,y
X am p a y in g a l l I can o v e r and above l i v i n g e x p en ses now i n
p u rc h a s e o f War B onds. How can I keep up th e s e paym ents and pay
th e w ith h o ld in g ta x ?
^ ^
X‘m s u r e t h a t you have b e e n s e t t i n g a s i d e a p a r t o f y o u r p a y to
m eet q u a r t e r l y i n s t a l m e n t s o f y o u r incom e t a x , t h e w ith h o ld in g
t a x i s m e re ly a " p a y - a s - y o u - g o ," o r in s ta llm e n t- m e th o d o f p a y in g
y o u r incom e t a x , i n s t e a d o f i n a lump sum. I t s h o u ld make i t
e a s i e r f o r you to b u y a d d i t i o n a l War B onds.
TREASURY DEPARTMENT
Washington
Press Service
FOR IMMEDIATE RELEASE
37-/
ho.
The Treasury received today the sum of $l6Sf 9^5*5^ from
the Government of Finland* representing the semi-annual
payment of in terest in the amount of $136*220*00 under the
Funding Agreement of May 1* 1923# $19*030*50 as the twentieth
semi-annual annuity due under the Moratorium Agreement of
May 23* 1932* and $13*695*06 as the f i f t h semi-annual annuity
due under the postponement agreement of May 1* 19^1*
This
payment represents the entire amount due from the Government
of Finland*
o O o
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T uesday, June 15 > 19^3*
P re ss S e rv ic e
No* 3 7 ~ li
The T re a su ry re c e iv e d to d ay th e sum o f $165,9^5*56
from th e Government o f F in la n d , r e p r e s e n tin g th e sem i
an n u al payment o f i n t e r e s t in th e amount o f $ 1 3 6 , 22 0. 00
u n d er th e Funding Agreement o f May 1, 19^3; $19,030*50
as th e tw e n tie th sem i-an n u al a n n u ity due under th e
M oratorium Agreement o f May 2 3 , 1932, and $1 3 , 695*06
as th e f i f t h sem i-an n u al a n n u ity due u n d er th e p o s t
ponement agreem ent o f May 1, '19^1.
T h is payment r e p
r e s e n ts th e e n t i r e amount due from th e Government
o f F in la n d .
- 0O0 -
^ o .
FOR IKM3DIAIE RELEASE,
?TO.
194g._______
The Bureau of Customs announced today preliminary figu res shoving the quan
t i t i e s of coffee authorised for entry for consumption under the quotas for the
twelve months commencing October 1* 1942, provided for in the Inter-American
Coffee Agreement, proclaimed by the President on April 15, 1941, as follows}
:
:
Country of
t Qpota Quantity :
Authorised for entry
Production
:
(Pounds) 1 /
:_________ for consumption
________ _______ •__________________ : As of
(Bate). _1___ (ffQim&g)
Signatory Countries!
B rasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
EL Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
Yenesuela
2,172,359,753
735,840,277
46,718,031
18,692,451
25,752,947
35,041,235
140,776,585
124,978,598
64,236,136
4,278,467
111,292,661
45,818,819
5,839,588
90,023.,490
Ron-signatory Countries:
)
B r itish Empire, except
)
Aden and Canada
)
Kingdom o f the Netherlands)
and i t s possessions
) 75,969,017
Aden, Yemen, and Saudi
)
Arabia
)
Other countries not signa-)
to rie s o f the In ter)
American Coffee Agree- )
ment
)
1J
Qpotas revised as of March 5, 1943*
oOo-
June 5, 1943
r
it
n
«
M
N
N
N
If
H
t
H
M
8
459,719,018
400,271,318
24,630,250
9,726,878
17,231,324
16,468,064
87,336,148
58,646,986
49,632,744
2,576,705
49,378,509
17,909,950
162
57,916,605
31,174,629
TR EA SW £$?AgfMENT
FOP IMMEDIATE RELEASE,
W ednesday. J u n e 16, 1943.
P r e s s S e rv ic e
Ho. 37-12
The B ureau o f C ustom s announced to d a y p r e lim in a r y f i g u r e s show ing th 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 p r p n tj y fo p c o n su m p tio n u n d e r th e q u o ta s
f o r th e tw e lv e m onths commencing O c to b e r 1, 1942, p r o v id e d f o r in th e I n t e r A m erican C o ffe e A greem ent* p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941, a s
fo llo w s !
C o untry o f
P ro d u c tiC n
S ig n a to ry C o u n t r i e s ’
B ra z il
C olom bia
C o s ta R ic a
Cuba
D om inican R e p u b lic
E cuador
E l S a lv a d o r
G uatem ala
H a iti
H onduras
Mexico
N ic a ra g u a
P eru
V en ezu ela
Q uota Q u a n tity
(P ounds) 1?
________ i As o f
2,172,359,753
735,840,277
46,718,031
18*692,451
25,752,947
35,041,235
140,776,585
124,978,598
64,236,136
4,278,467
•111,292,661
45,818,819
5,839,588
90,021,490
N o n -s ig n a to ry C o u n tr ie s :
)
B r i t i s h E m pire, e x c e p t
)
Aden and C anada
)
Kingdom o f th e N e th e rla n d s )
and i t s p o s s e s s io n s
) 7 5 ,9 6 9 ,0 1 7
Aden, Yemen, and S au d i
)
A ra b ia
)
O th e r c o u n t r i e s n o t s ig n a - )
t o r i e s o f th e I n t e r ))
A m erican C o ffee A g re e - )
ment
)
2j
Q uotas r e v is e d a s o f M arch 5 , 1943,
-t-oOo-
:
t ____
Authorized for entry
for consumption
(Date) :
(PoundsT
June 5
ir
t!
It
II
It
It
It
It
tl
It
n
n
it
”
459,719,018
400^271^318
24,630,250
9,726,878
17,231,324
16,468,064
87,336,148
58,646,983
49,632,744
2,576,705
49,378,509
17,909,950
162
57,916,605
31,174.639
- 3 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 u b se q u e n t p u r c h a s e , and th e amount
a c t u a l l y r e c e iv 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 in g th e ta x a b le
1
y e a r f o r w hich th e r e t u r n i s made, a s o r d in a r y g a in o r l o s s .
T re a s u ry D ep artm en t C i r c u l a r IJo. 4 18, a s am ended, and t h i s n o t i c e , pre
s c r i b e t h e t e r n s o f th e T re a s u ry b i l l s an d g o v e rn th e c o n d itio n s o f t h e i r issu e , j
C opies o f th e c i r c u l a r may b e o b ta in e d from an y F e d e r a l R e se rv e Bank o r Branch.
.
|H B
O
,j
i
n m
-
2
R eserv e Banks and B ra n c h e s, f o llo w in g w hich p u b li c announcem ent w i l l b e made by the
S e c r e t a r y o f th e T re a s u ry o f th e am ount and o r i c e ra n g e o f a c c e p te d b i d s .
Those
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T re a s u r y e x o r e s s ly r e s e r v e s th e 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 w h o le o r i n p a r t , an d h i s a c t i o n i n an y su ch r e s p e c t s h a l l be f i n a l . 1
S u b je c t to th e s e r e s e r v a t i o n s , te n d e r s f o r $ 1 0 0 ,0 0 0 o r l e s s from an y one b id d e r a t
9 9 .9 0 5 e n te r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Paym ent o f acc ep ted
t e n d e r s a t th e p r i c e s o f f e r e d m u st be made o r c o m p le te d a t th e F e d e r a l R eserv e Bank
i n cash o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s on
June 23. 1943_______
.
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
th 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 l l s , s h a l l n o t h av e an y e x e m p tio n , a s such,
\
and l o s s from th e s a l e o r o th e r d i s p o s i t i o n o f T re a s u r y b i l l s s h a l l n o t h av e any
s p e c i a l t r e a tm e n t, a s s u c h , u n d e r 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 te d .
The
b i l l s s h a l l be s u b j e c t to 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 hether
F e d e r a l o r S t a t e , b u t s h a l l be exem pt from a l l t a x a t i o n now o r h e r e a f t e r im posed
on th 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 an y S t a t e , o r an y o f th e p o s s e s s io n s o f
th e U n ite d S t a t e s , o r by any l o c a l t a x in 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
am ount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U n ite d S ta te s
s h a l l be c o n s id e r e d to b e i n t e r e s t .
Under S e c tio n s 42 an d 117 (a ) ( l ) o f th e
I n t e r n a l Revenue Code, a s amended by S e c tio n 115 o f th e R evenue A ct o f 1 9 4 1, th e
am ount o f d is 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 ld s h a l l n o t be c o n s id e re d I
to a c c r u e u n t i l such b i l l s s h a l l b e s o l d , redeem ed o r o th e r w is e d is p o s e d o f , and
such 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 a s c a p i t a l a s s e t s .
A c c o rd in g ly , th e
owner o f T re a s u ry b i l l s (o ^ h e r th a n l i f e in s u r a n c e co m o an ies) is s u e d h e r e u n d e r
n eed i n c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p r i c e p a id
1
*
T
L
TREASURY DEPARTMENT
W ash in g to n
FOR RELEASE, MORNING NEWSPAPERS,
Friday, June 18, 1943_____
*
/
i
5 5
The S e c r e t a r y o f t h e T r e a s u r y , b y t h i s p u b l i c n o t i c e , i n v i t e s te n d e r s
f o r 1 1 ,0 0 0 ,0 0 0 ,0 0 0
, o r th e re a b o u ts , o f
92 - day T r e a s u r y b i l l s , to b e i s s u e d
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r p ro
v id e d .
Juaa 23* 1943
» an d w i l l
--------------- 5 T
, when t h e f a c e am ount w i l l be p a y a b le w ith o u t
The b i l l s o f t h i s s e r i e s w i l l b e d atecl
m a tu re
g^p^opib e r 2 S f 19A.S
!EKZ
in te re s t.
They w i l l be i s s u e d i n b e a r e r fo rm o n ly , an d i n d e n o m in a tio n s o f $1,000,
$ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , an d $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y v a l u e ) .
T en d e rs w i l l be r e c e iv e d a t F e d e r a l R e se rv e Banks an d B ran ch e s up t o the
c l o s in g h o u r , two o ’ c lo c k p . m ., E a s te r n War tim e ,
Monday, June 21, 1943______ .
T en d ers w i l l n o t b e r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n .
Each te n d e r
m u st be f o r an even m u l t i p l e o f $ 1 ,0 0 0 , an d t h e p r i c e o f f e r e d m u st be e x p re s s e d
on th e b a s i s o f 1 0 0 , w ith n o t m ore th a n t h r e e d e c im a ls , e . g . ,. 9 9 .9 2 5 .
may n o t b e u s e d .
F r a c tio n s
I t i s u rg e d t h a t te n d e r s b e made on th e p r i n t e d fo rm s and f o r
w arded i n th e s p e c i a l e n v e lo p e s w hich w i l l b e s u p p lie d by F e d e r a l R e se rv e Banks
o r B ran ch es 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 b e r e c e iv e d w ith o u t d e p o s i t fro m i n c o r p o r a t e d b an k s and
t r u s t com panies and from r e s p o n s ib le ' and r e c o g n iz 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
tie s .
T en d ers from o t h e r s m ust b e acco m p an ied by p aym ent o f 2 p e r c e n t e f th e face
am ount o f T re a s u ry b i l l s a p p l ie d f o r , u n l e s s th e t e n d e r s a r e acc o m p an ied by an
e x p r e s s g u a r a n ty o f paym ent b y an i n c o r p o r a t e d bank o r t r u s t company.
Im 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 b e o p en ed a t t h e F ed eral
S’ 7 - / 3
'
I
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
F r id a y . June
___________
The S e c r e t a r y 6f | h e T re 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 h d e r s H # #1 , 000, 000, 000, o r t h e r e a b o u t s , o f 92^day
.Treasury b i l l s ,
to be i s s u e d on a d i s c o u n t b a s i s , u nder com*-
• p e t i t l v e and f i x e d - p r i c e b id d i n g as h e r e i n a f t e r p r o v id e d , 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 June 2J, 19^3, and w i l l
mature September 23, 19^3» when th e f a c e a m o u n t 'w i l l be paya b l e ; ‘Without i n t e r e s t ,
They w i l j be i s s u e d in b e a r e r form
o n ly , and i n denom inations o f | 1 , 000, $5 , 000, #10,000 #100, 000,
#500, 000, and #1 , 000,000 ( m a t u r i t y v a l u e ) .
• •• ‘ T enders w i l l be r e c e i v e d a t F e d e r a l Reserve Banks and
b ra n c h e s up to t h e c l o s i n g hour, two o ’c l o c k p, m ,, E a s t e r n
■J
Monday, June 21, 19^3* Tenders w i l l not be r e ce iv e d a t th e T r e a s u r y Department, W ashington. ■ Each t e n d e r
must be f o r an even m u l t i p l e of # 1 , 000 , and the p r i c e o f f e r e d
must be, e x p r e s s e d on th e b a s i s o f 1 0 0 , w ith not more than
. h r e e d e c im a ls, e . g , , 99*9-25* F r a c t i o n s may not be use d . I t
i s : u rged t h a t t e n d e r s be made on the' p r i n t e d forms and f o r - •
warded in t h e s p e c i a l enve lopes which w i l l be s u p p l i e d by Fed
e r a l R eserve Banks, o r Branches on a p p l i c a t i o n t h e r e f o r .
T enders w i l 1 be r e c ^ iv ed w ith 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 a z e a ^ d e a l e r s in inve stm e nt s e c u r i t i e s . Tenders from o t h e r s
must be accompanied by payment of 2 p e r c e n t o f th e f a c e amount
01 i 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 accom
panied by an e x p r e s s g u a r a 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.
4-v^mS edia1:;e^y a f t e r t h e c l o s i n g hour,
t e n d e r s w i l l be opened
■(2era* Reserve Banks and Branches, f o l l o w i n g which
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
T r e a s u r y o f t h e amount and p r i c e range of a c c e p te 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 of th e a c c e p tan c e o r ref
l e c t i o n t h e r e o f . The S e c r e t a r y o f t h e T re a su ry 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 to a c c e p t o r r e j e c t any 6 r a l l t e n d e r s , in
wnoie o r in p a r t , and h i s a c t i o n in any such r e s p e c t s h a l l be
fin al.
S u b j e c t to t h e s e r e s e r v a t i o n s , t e n d e r s f o r #100,000
' voV6
37-13
o r l e s s from any one b i d d e r a t 99 *9 05 e n t e r e d on a f i x e d - p r i c e
b a s i s w i l l be a c c e p te d i n f u l 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 or completed a t t h e F e d e r a l
Reserve Bank i n c a s h o r o t h e r im m ed ia tely a v a i l a b l e funds on
June 2 3 , 191 *3 . .
. '
I
|
The income d e r i v e d from T r e a s u r y b i l l s , whether^ 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 t h e b i l l s , s h a l l
not have any exemption, as such, 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 of T r e a s u r y b i l l s s h a l l not have any s p e c i a l
t r e a t m e n t , a s such, un d er F e d e r a l t a x Acts 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 hethe 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 , <Jr any o f th e
p o s s e s s i o n s o f t h e U nited 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 p urposes 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 ite 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 *4-2
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 115 o f t h e Revenue Act o f 19^1, 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 to a c c r u e u n t i l such b i l l s s h a l l .be sold* redeemed
o r o t h e r w i s e d is 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 cc ordingly,, 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 companies ) 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 ly 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 suc h b i l l s , w hether on
o r i g i n a l i s s u e o r on subsequent 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 redem p tio 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 in o r l o s s .
T r e a s u r y Department C i r c u l a r No. ^16, 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 rms o f t h e T r e a s u r y b i l l s and
govern t h e c o n d i t i o n s o f t h e i r I s s u e . Copies 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 eserve Bank o r Branch.
~o0 o~
1
- 34 **
problem, American consumers will not only gladly pay
heavier taxes, but they will urge that more taxes be
enacted, in order to ensure that our war effort suffers
no hindrances from unsound price rises* Moreover, they
will take other action to adjust their spending and
saving patterns to an all-out war basis so that the
economic cost of the war will be distributed as fairly
things like Rome cannot be built in
)
>
1
a day. The job must Sbe done,,
day fe§§. day by an informed
M
jj
fiM JU -
T t+ r
noz snrinx irGm<jg) task because it
wartime tax problem and its intimate relation to the
many-fronted attack on inflation*
The strength of a
democracy lies in an informed electorate*
It is your
responsibility, as well as mine, to make clear to our
fellow citizens the critical need for additional taxation
at the present time*
The demand for revenue is impelling enough to call
for bold tax measures. But I have cited other reasons
why such measures are urgently needed, American consumers
have a right to expect that the war burden will be d is tri
buted equitably by taxation, rather than fortuitously by
inflation,
I am certain that they are willing to do all
they can to aid in this respect,
I know that if we can
make clear to them the nature of our wartime economic
problem,
• 32 -
successful. Additional taxes are needed to buttress
price control and rationing# The more we tax, the less
the likelihood that our incomes will be dissipated in
rising prices. To say that wartime inflation would de~
mnd considerably more sacrifices than a so-called
"burdensome* tax program is to state the matter very
mildly. To the extent that heavier taxes are'merely an
alternative to further and more rapid price rises, we
cannot object to them on the ground that they would be
excessively burdensome. Indeed,
we
should consider them
a blessing, rather than a burden, for our war economy*
Conclusion
I shall be gratified if my observations this morning
have added to your understanding of the character of our
wartime
■
Is Wartime Taxation Burdensome?
Before concluding, I would lik e to say a few words
about the concept of a **tax burden*” Taxes have an asset
side as w ell as a l i a b i l i t y side*
In peacetime, taxes
were used to build our roads and schools, to protect our
liv es and property, and to create the democratic way of
lif^ w h ic h we are now fig h tin g to preserve.
As Americans
we know th at we have received money’s worth from the taxes
we have paid*
We cannot say th at we have been unduly
burdened*
In wartime there is an ad d itio n al reason fo r looking
a t the asset side of taxes.
I have trie d to show you
th a t we must ra is e considerably more money by tax atio n
i f the Government’s a n ti-in fla tio n program is to be
successful*
~ 30 make unreasonable claims on scarce men and machines*
The se c r ite r ia are not co n tro v ersial; n eith er are
they d if f i c u lt to comprehend.
A ll of you could go through
the l i s t of taxes which have been suggested as wartime
revenue measures and check them for th e ir m erits and
e ffic ie n c ie s in the lig h t of these tests*
You would find
th at the income tax ranks very high on your l i s t ; also
th at a spendings tax s a tis f ie s these c r ite r ia in many
important ways. You would discover th a t a sales tax has
sig n ifican t d efic ien cies, esp ecially because i t would
f a l l heaviest on the low income groups and because i t
would in te rfe re with the Government’s s ta b ilis a tio n
program.
_Ogjfir
tax in reducing consumer spending and in a llo c a tin g th a t
reduction among the people*
We must be careful th a t the
new taxes do not encroach harmfully on necessary liv in g
standards.
We should try to design the tax increases so
th a t they w ill e ffe c tiv e ly reach those sections of the
population whose incomes indicate an a b ility to pay heavier
taxes.
Moreover, in selecting taxes for the purpose of
combatting in fla tio n we should pay p a rtic u la r atten tio n
to the e ffe c ts the taxes w ill have on the d ire c t a n ti
in fla tio n co n tro ls.
I f the taxes impaired the effectiveness
of our price and wage s ta b ilis a tio n programs, there might
be a net lo ss, ra th e r than a net gain, on the a n ti-in fla tio n
fro n t.
F in ally , enforcement of the new taxes should not
make unreasonable
-
28
-
Tlx© estim ates of income and consumer supplies indicate
th at taxpayers as a group can afford to pay much higher war
taxes*
From an a n ti-in fla tio n viewpoint i t is l i t e r a l l y
UAfHi* ^
true to say thatviney now have more money than is good for
them*
I f the $16 b illio n revenue goal cited by our President
in h is January Budget Message were enacted into law, consumers
would s t i l l re ta in disposable incomes considerably in excess
of amounts they have retained in previous years.
They would
s t i l l be able to buy large amounts of War Bonds and to
accumulate record to ta l savings.
The Choice between A lternative Tax Measures
In selectin g the kind of taxes we w ill use we can no
longer be governed by revenue considerations alone. 'We must
assign much weight to the effectiveness of the p a rtic u la r
tax in
- 27 I f consumer spending th is year is to be lim ited to
$80 or $85 b illio n , consumers must save or pay in ad d itio n al
taxes between $40 and $45 billion*
This amount is the
difference between the current value of the available goods
and services and the $125 b illio n of disposable income
estimated fo r 1943.
Forty or fo rty -fiv e b illio n d o llars
is an exceedingly large amount to be taken up in any one
year by individual savings alone.
I t is a dangerously large
amount from an a n ti-in fla tio n viewpoint, and an unnecessarily
large amount from the standpoint of what the Nation normally
saves.
We estim ate th a t annual savings of $20 b illio n would
be ample to \care fo r the needs of our c itia e n s .
Liquid
savings of individuals amounted to $10 b illio n in 1941 and
$5 b illio n in 1940.
The estim ates
for a n ti-in fla tio n a ry purposes means th a t the money w ill be
there to pay the necessary tax es.
We need more taxation
because our money incomes are so much la rg e r.
reason we can afford to pay more taxes.
For th is same
I f our incomes were
smaller we would be able to pay le s s , but there would also
be le ss need for add itio n al taxes.
In 1943 individual incomes a f te r paying d ire c t personal
taxes under present law w ill aggregate about $125 b illio n .
In prosperous 1940 we had l e f t only $74 b illio n a f te r paying
taxes, and in 1932 the corresponding figure was $46 b illio n .
In other words, deBpite the su b sta n tia l tax increases of
recent years the American people w ill have considerably more
money to spend and to save in 1943 than they had a t any time
before - - $51 b illio n more than in 1940, and $79 b illio n
more than in 1932.
I f consumer
- 25 The pay-as-you-go law also makes the individual income
tax a much more flex ib le instrument for use in combatting
inflation#
Tax rate changes w ill be re fle c te d much sooner
in In tern al Revenue c o lle c tio n s.
Moreover, by placing
taxpayers on a current b a sis, the new law puts them in &
much b e tte r position to pay the higher taxes th a t are
c r itic a lly needed a t th is time#
The Amount of Additional Taxes Needed
To lim it consumer expenditures during 1943 to $80 or
$85 b illio n — the estim ated value of the supplies th a t w ill
be av ailab le, assuming th a t ruinous price ris e s are prevented —
a t a time when income w ill be considerably in excess of th at
amount, w ill require very d ra s tic pruning.
On the other hand,
the very fa c t th a t we need a large amount of ad d itio n al revenue
for anti-*inflationary
|l
—24
1948 income tax lia b ilitie s v;Ill have been paid.
Hie revised tax plan should encourage people to
cave systematically. Host taxpayers w ill .now have
an accurate conception of the tax lia b ilitie s they
time they
are accruing at the
receive th e ir incomes,
Therefor®, they w ill be bettor able to gear th e ir
the Income
remaining
9PKP
spending and their saving to
a fter their tax lia b ilitie s have been deducted.
IMai
the old system they would not know the correct 'amount
of their tax lia b ilitie s and of the incone at th eir
.disposal u n til March, 1944, when they prepared th eir
,
tax returns for 1943
Hie pay-as-you-go
gg^esaggsaat^ipp
• 23 *
While some hardships can be prevented i f we use the
tax system w isely, we should not l e t ourselves believe th at
we can raise the necessary ad d itio n al amounts by taxation and
not fe e l the pinch.
War imposes many kinds of hardship^
the fin an cial and economic hardships induced by heavy taxation
M'''
are fa r le ss serious than the physical suffering th a t many
must endure.
Moreover, they simply r e f le c t the basic facts
th at we must work harder and consume le s s .
The Contribution of Pay-as-you-go
The recently enacted pay-as-you-go Income tax law w ill
a s s is t wartime f is c a l planning.
I t places 17 m illion Income
taxpayers on a fu lly current basis with respect to th e ir
1943 tax l i a b i l i t i e s .
The remaining taxpayers w ill be fu lly
current by 1945 when the unremitted portion of th e ir 1942 or
1943
jgiffMMMI
-
22
-
the f i r s t of our war tax increases.
#& have had sig n ific a n t
Revenue Acts in each of the past three years.
The y ield of
our Federal tax system has increased more than six -fo ld since
1940.
Many of our taxpayers are already finding i t d if f ic u lt
to pay th e ir present tax b ills#
For these reasons we must
make a special e ffo rt to ad ju st our tax increases to the
economic and family statu s of 135 m illion Americans with
widely varying incomes, fixed commitments, and spending
requirements.
Obviously, i f we were to use the tax system
indiscrim inately, so th a t consumer spending was re s tric te d
without regard to economic and family s ta tu s , the re su ltin g
d istrib u tio n of the cost of the war might be almost as
undesirable as the p attern which would have resulted i f the
d istrib u tio n had been l e f t to the forces of in fla tio n . /
While some
spending th a t we can stem the risin g tide of in fla tio n .
Taxation is an important instrument which can and
should be used to r e s t r i c t consumer spending and a s s is t in
achieving a planned d istrib u tio n of the war c o sts.
Increased
taxes w ill absorb some of the excess purchasing power and
thereby relieve the pressure on ex istin g price le v e ls.
Heavier taxes w ill serve as a
-to rationing for the
7
withdrawal of excess purchasing power from private spending
channels w ill drive many black-market operators out of busi
ness.
In addition, there w ill be le ss need fo r extending
consumer rationing programs to include goods not y et under
rationing.
Taxes, however, are a powerful instrument and must be
used with great care.
I t is not as i f we were considering
the f i r s t
President called a tte n tio n to th is problem in h is Budget
Message of la s t January when he stated*
,fA large portion of th is excess buying power
must be recovered into the Treasury to prevent
the excess from being used to bid up the price
of scarce goods and thus undemine the s ta b i li
zation program by breaking price c e ilin g s ,
creating black markets, and increasing the cost
of living*^]
<
Our c itiz e n s must realize th a t i f they are ever to
fcftjoy the f r u its of th e ir increased earnings, they must
pay heavier taxes and, in ad d itio n , they must save mure
and spend le ss of the spendable income available a f te r
paying th e ir taxes, for i t is only by r e s tr ic tin g consumer
spending
programs embracing a su b stan tial p a rt of the consumer’s
budget have been introduced*
To the extent th a t these
controls are e ffe c tiv e , they enforce a planned d is trib u tio n
of the economic burden of the war*
We cannot expect, however, th at our rationing and price
control programs w ill do the job unaided.
These programs
are being subjected to very su b stan tial monetary pressure
a t the present time, pressure which re s u lts from the vast
amount of excess purchasing power in the economy*
This
pressure promises to increase during the remainder of the
war period, unless i t is relieved by sig n ific a n t tax increases.
Each month our war production program adds many b illio n s of
d o llars to the Nation’s buying power a t a time when the
/
amount of goods to be bought is declining stead ily * / The
President
-
18
-
and d is p a ritie s to the detrim ent of th e ir productive e ffo rts .
I f in fla tio n should become serious in th is country —
and our Government is determined th a t i t sh a ll not — i t w ill
mean th a t we c iv ilia n s have fa ile d miserably in our responsi
b ility for safeguarding our domestic economy for the soldiers
and s a ilo rs
who
are fighting our b a ttle s in a l l p arts of the
world.
Planning the Burden D istribution
There is an a lte rn a tiv e to leaving the d istrib u tio n of
the war costs to in fla tio n .
I re fe r to the p o s s ib ility of
planning an e ffic ie n t and equitable d is trib u tio n by means of
d ire c t and in d ire c t Government control measures.
Much progress
has already been made in th is d ire c tio n , for p ra c tic a lly a l l
prices are now subject to c e ilin g co n tro ls, and rationing
/
.
•• ' ■
'■
...
;■'
■: ... - ' •;
“ .
programs
• •:
allo catio n of the war costs*
In fla tio n p ile s many more
I1SP
hardships on top.
I t confiscates much of the savings they
have accumulated*
By increasing the war c o sts, in fla tio n
expands the public debt and in te n s ifie s the Government’s
revenue needs.
I t leads to waste and indiscrim inate
production, fo r i t becomes extremely d if f ic u lt to prevent
re a l resources from flowing out of war and e sse n tia l c iv ilia n
production and into the areas which offered the best
opportunities fo r money-making.
F in ally , in fla tio n makes
postwar adjustments considerably more d if f ic u lt and painful.
Borne of the consequences of in fla tio n are le ss tangible.
War workers become involved in a struggle for higher wages
to which they fe e l e n title d because of the sp ira llin g cost
of liv in g .
Business men become absorbed in price v ariatio n s
and d is p a ritie s
Such a c ts do not escape the eyes of other consumers
who have not received wartime increases in th e ir incomes.
B itte r feelings re s u lt because of the in ju stic e s th a t are
involved.
When purchasing power is excessive, black market
operators are quick to sense the situ a tio n and take advantage
of i t .
Moreover, runs on sto res s t a r t quickly when someone
picks up a false rumor about an impending shortage.
Such
conditions dangerously undermine consumer morale, because
they re fle c t basically an inequitable d is trib u tio n of the
economic cost of the war.
Additional Reasons for Avoiding In fla tio n
There is no need for me to dwell on the e v ils of
in fla tio n , for they are w ell known to the members of th is
audience.
Consumers are affected not only by the inequitable
allo catio n
- 15 war© in su ffic ie n t i f they had been allocated equitably,
m
but simply because others who got there f i r s t bought on
the basis of th e ir higher incomes, instead of on the basis
of wartime standards of consumption.
When some consumers hold su b sta n tia l amounts of excess
purchasing power, i t is d if f ic u lt for them to ad ju st th e ir
spending habits to the national consumption lev el demanded
by war.
They are tempted to buy as they would i f th e ir
earnings had been sim ilarly increased in peacetime.
They
are not especially mindful of whether they are being asked
to pay higher than ceilin g p ric e s.
At times they buy goods
in excess of actu al needs, disregarding the fa c t th a t by
doing so they compel th e ir neighbors to do without these
goods.
Such acts
•
JL4 -
ex istin g d isp a rity between demand and supply could be
corrected In no other way* We would have in fla tio n a Imply
because too much money would be competing for too few
goods*
By attempting to spend th e ir enlarged Incomes
consumers would succeed only in bidding up the money value*
the p ric e s, of the available goods*
The physical quantity
of the goods available fo r consumption could not be In
creased, except a t the expense of war production,
A sm a ll p a r t o f t h e war burden has a l r e a d y been
d i s t r i b u t e d by the e r r a t i c and i n e q u i t a b l e f o r c e s o f i n f l a t i o n .
This has r e s u l t e d because our economy i s f u l l of e x c e s s p u r
c h a s in g power ready to bid up p r i c e s and d i s o r g a n i z e the
flow o f goods to consumers.
A l l o f us a t tim es have found
s t o r e s h e lv e s which were bare n o t because t h e t o t a l s u p p l i e s
were i n s u f f i c i e n t
ex istin g d isp a rity between demand and supply could be
corrected in no other way* We would have in fla tio n simply
because too much money would be competing for too few
goods*
By attempting to spend th e ir enlarged incomes
consumers would succeed only in bidding up the money value*
the p ric e s, of the available goods*
The physical quantity
of the goods available fo r consumption could not be in
creased, except a t the expense of war production*
m IS •
We crust decide whether we want to leave the d i s t r i
bution of the war costs to the ravages of th a t gremlin of
our economy — in fla tio n , or whether we want to u tiliz e
fis c a l instruments and other instruments a t our disposal
to plan the d istrib u tio n so th a t i t w ill be apportioned
e ffic ie n tly , ffom the standpoint of an e ffic ie n tly operated
war economy, and f a ir ly , from the standpoint of equity
among consumers.
Assume, fo r the moment, th a t we were relu c tan t to
take d eliberate action to plan the d is trib u tio n of the
war costs, and th a t, as a re s u lt, w# l e f t the d is trib u tio n
to impersonal economic forces.
The wartime paradox of
Is
rjiaimiiaut incomes and scarce supplies would mean th a t i f
no^steps were taken to control the excess purchasing power
a disastrous price sp iral would in ev itab ly occur.
The
existing
** If* *
Methods of Dis trib u tin g the Economic Cost of War
him.
■»
------------------------------------ ——
w
—
—
rr- r - — rrn iTun
When we adopt measures which reduce consumer demand
end remove the th reat of excess purchasing power from the
market, we are in effect taking d elib erate action to
apportion the economic cost of the war among our citizenry*
Harder work on the one hand, and a lower supply of
consumer goods and services on the other, c o n stitu te the
price c iv ilia n s must pay to win th is war*
They are the
inescapable economic co sta, the r e a l burden, which must
be met now while we are fighting*
F iscal planning has
no d ire c t bearing on the magnitude of the to ta l re a l cost
which must be borne, for th a t is determined by the size
of our war effort*
On the other hand, f is c a l planning
has a very d ire c t bearing on how th a t cost is d istrib u te d
among the population*
We must
our output of radios
consumer goods.
other
The divergence can bo co rrected , how-
eiror, and the th reat of in fla tio n countered, i f measures
reducing consurser
ns in avall&fe
supplies
This is the
duction.
Unless ib is is done
Our productive
IIow we must take the bold steps necessary to
convert consumers to a wartime p a tte rn of constoptlon.
We must recognise th a t th is w ill require a Herculean
e ffo rt on the p art of a l l of as.
The e f f o r t, however
w ill b# well rewarded| i f in fla tio n is prevented*
This situ a tio n is altered d ra s tic a lly in a war
economy* While income and to ta l production increase
hand-in-hand, consumer demand and supplies available fo r
consumer purchases move in inverse directions*
A fter we
have reached f u l l production, we can expect th at with
each increase in war production, consumer income.and
demand w ill expand and supplies available fo r c iv ilia n
us® w ill c o n tra c t,/
I t is th is divergence between demand and supply which
is the basic cause of in fla tio n in wartime.
The divergence
cannot be corrected from the supply sid e , because th at
would necessitate a s h if t of men and machines from war
production to nonwar production*
I t would mean th at we
would reduce our output of planes, tanks, and ships, and
increase
go with high earnings are not possible in wartime, w ill
m be able to operate our economy at maximum efficiency#
The economic paradox I have in mind a rise s out of
the fact th a t the la rg e st p art of our production today
goes to the b a ttle fie ld instead of the market place*
In
a nonsrar period, most of the income earned in production
is matched by a corresponding flow of goods and services
available for consumption#
Although some income is saved
th is is balanced by dissaving, or by investment in homes,
in d u stria l p la n ts, and equipment, and other durables#
ihen consumers choose to spend more, there is o rd in arily
su ffic ie n t leeway in the peacetime economy to permit the
increased demand to stim ulate larg er production of the
thing© consumers want to buy#
8
-
-
The Economic Paradox of
-i.ijiiu 1-L .n rr r - ' - iTirmr in-iirm r T- rir-r Tr. rr^inr-i-itr-r-rr
u r
a War
il, y- rT— Tl~~TT"r—......... — ---- ----------
Economy
----- “
The rapid pace of Federal spending indicates more
than the encouraging progress being made in war production#
I t also indicates the huge sums being paid out to pro
ducers of war m a teriel, to workers in our fa c to rie s and
shipyards, and farmers in our f ie ld s .
I t is th is dual
aspect of war spending, the production aspect and the
income aspect, which gives r is e to what I have called
wthe economic paradox of a war economy.*
In a to ta l war
economy income is p le n tifu l, c iv ilia n goods are scarce*
Consumers in the aggregate enjoy prosperity pocketbooks,
yet they are forced to reduce th e ir re a l consumption to
depression le v e ls .
Not u n til people re a lis e th is fact* not u n til they
appreciate th at the h igh-living standards th a t o rd in arily
go with
«#
m
m m f u lly u tilis in g ex istin g f a c ilitie s #
P art w ill come from newly constructed p lan ts being brought
into production#
Finally# p a rt w ill come from diverting peacetime
in d u stries and personnel to wartime uses.
In an a ll-o u t war
econoE^r i t is not possible to maintain peacetime liv in g
standards*
Many comforts, and some things which Americans
have come to regard as necessities# must be sa c rific e d fo r
the war machine#
•
6 -
w ill be raised ** how much w ill be raised by taxes, and
what kind of taxes w ill be used*
The f inancial side of the war e ffo rt has i t s "real* or
physical counterpart#
The ris in g trend of Federal spending
re fle c ts the extent to which our country1s resources are
being drawn in to the war effort#
I f we are to spend one*third
more fo r war purposes in the coming f is c a l year than in the
year now drawing to a close, we w ill require v a stly more
re a l resources ** more men, machines and equipment ** in our
war in d u stries and armed farces#
We w ill obtain these
ad d itio n al resources jin various ways.
P art w ill case from
an expansion of the working force, e sp ecially the bringing
of women into war p lan ts
m 0 m
(including the $3 b illio n additional revenue under the
pay-as-you-go le g is la tio n ) in the coming f is c a l year,
leaving a d e f ic it in the neighborhood of $70 b illio n .
A
d e fic it of th a t magnitude would be IS times la rg e r than
the highest d e f ic it we had during any of the depression
years of the t h i r t i e s .
Let me assure you, however, th a t lack of the necessary
wherewithal w ill never prevent guns from reaching the
of our so ld iers or bombs from b la stin g our e n e a its.
In one
way or another our Government w ill ra is e the money to pay
its b ills .
There i s no need fo r any of us to fear th a t the
necessary funds w ill not be raised*
However, there i s a very
real need fo r a l l of us to be concerned about how these funds
w ill be raised —
» 4
•hips*
lend-leaso aid to our Allies* sad fo r pay*
subsistence and equipment f o r our fig h tin g force* a t home
and overseas*
We estimate th a t in the f is o a l year beginning two
weeks hence more than $100 b illio n w ill be spent fo r the
prosecution of the war.
The immensity of our fin a n c ia l
plans fo r the coming f is o a l year is indicated by th is s trik in g
comparison*
average expenditures per month w ill exceed the
la rg e st amount spent by the Government in any noa>war year
in i t s h is to ry .
The r e o lta l of these fig u res ra is e s in a l l our «tn*»
the question!
Bow w ill we ever be able to pay fo r i t a ll?
Our present tax system w ill y ie ld approximately $38 b illio n
(including
-
8-
have bean converted to war production.
Bold tax measures,
as w ell as other wartime controls, are needed to e ffe c t
th is conversion*
—
The Magnitude of Our War E ffort
Although I deal with the m atter every day, I s t i l l fin d
i t d if f ic u lt to appreciate the f u l l magnitude of the war
program our Government has undertaken and the extent to which
our Nation’s vast productive resources have been mobilised*
Let us f i r s t consider the fin a n c ia l side of our war
effort*
This month marks the end of the f is c a l year 1943*
During the past 12 months our Government spent approximately
$80 b illio n and raised about the same amount by taxes and
borrowing*
Nearly $75 b illio n of th is to ta l was spent
d ire c tly fo r war a c tiv itie s ~~ fo r planes, guns, tanks,
ships,
«► 2 m
which is indecisive and ineffective*
And we are well
aware, also , th a t when the American consumer lo ses, our
% o le war e ffo rt is imperiled*
The consumer has a v ita l in te re s t in the Governments
fin a n c ia l policy in peacetime as well as in wartime*
All
through the th i r tie s we talked a good deal about the impact
of tax atio n on consumer spending.
At th a t time we were
concerned w ith increasing employment and national prosperity
by increasing consumer spending*
Today, we are confronted with the converse of th a t
problem.
We must fin d ways and means to discourage consumer
spending and encourage saving*
Consumers must be converted
^ war consumption* ju st as industry and ag ricu ltu re
have been
WARTIME FISCAL FLAMING AMD THE AMERICAN CONSUMER
I t was w ith genuine pleasure th a t I accepted the
in v ita tio n to p a rtic ip a te in /our Wartime In stitu te *
I am
glad to meet the delegates to th is important conference*
My subject for discussion; th is morning i s "Wartime
F iscal Planning and the American Consumer*"
I selected th is
p a rtic u la r aspect of war finance not merely because I had in
mind your sp ecial in te re s ts as members of the American Home
Economics Association*—I selected the subject because i t is
of such v it a l importance a t th is stage of our war effort*
Those of us who are occupied w ith problems of war finance are
very conscious of the fa c t th a t the American consumer has a
great deal to gain from a vigorous and e ffic ie n t wartime
f is c a l policy, and a g reat deal to lose from a policy
which is
5 7 - /y
IX
Employee Relations?
The Place of Employee Organizations
- Ward Stewart
1.
The Importance of a Sense of "Belonging”
2.
Employee Organizations As One Means of Stimulating the Sense of
"Belonging”
3,
Unions As One Type of Employee Organization
The Place of Unions in the Public Service
5.
The Responsibilities of Operating Officials in Dealing with
Employee Unions
6.
Questions and Discussion
(The following address by Randolph
P a u l , General
for the Treasury, before the American Home SconomicJfcssociation
at its Wartime Institute, University of Maryland, College Park,
Maryland, is scheduled for delivery at 9.30 A.M«./June 18. 1943
and is for release at that time.)
TREASURY DEPARTMENT
W ashington
(The fo llo w in g a d d r e s s b y R andolph E. P a u l, G e n e ra l C ounsel
f o r th e T re a s u ry , b e f o r e th e A m erican Home Reonoraics A s s o c ia tio n
a t i t s W artim e I n s t i t u t e , U n iv e r s ity o f M aryland, C o lle g e P a rk ,
M ary lan d , i s sc h e d u le d f o r d e l i v e r y a t 9*30 A*M*, E a s te r n War
Time, June 18, 1943 and i s f o r r e l e a s e
t h a t •frime".)'''
WARTIME MTSCAL PLANNING AND THE AlfERICAR CORSRMER
I t was w ith g en u in e p le a s u r e t h a t I a c c e p te d th e i n v i t a t i o n t o
p a r t i c i p a t e i n your W artime I n s t i t u t e . I am g la d t o m eet th e d e l e g a te s
to t h i s im p o r ta n t c o n f e r e n c e .
My s u b je c t f o r d i s c u s s io n t h i s m o rn in g i s ^W artime F is c a l P la n n in g
and th e A m erican C onsum er.” I s e l e c t e d t h i s p a r t i c u l a r a s p e c t o f w ar
fin a n c e n o t m e re ly b e c a u se I had I n mind, y o u r s p e c ia l i n t e r e s t s a s members
o f th e A m erican Home Econom ics A s s o c ia tio n — I s e l e c t e d th e s u b je c t
b e c a u se i t i s o f such v i t a l im p o rta n c e a t t h i s s ta g e o f o u r w ar e f f o r t .
Those o f *us who a re o c c u p ie d w ith p ro b lem s o f w ar f in a n c e a r e v e ry con
s c io u s o f th e f a c t t h a t th e A m erican consum er h as a g r e a t d e a l to g a in
from a v ig o ro u s and e f f i c i e n t w artim e f i s c a l p o l i c y , and a g r e a t d e a l t o
lo s e from a p o li c y w hich i s i n d e c i s i v e and i n e f f e c t i v e . And we a r e w e ll
aw are, a l s o , t h a t when t h e A m erican consum er l o s e s , o u r w hole war e f f o r t
i s im p e r ile d .
The consum er h as a v i t a l i n t e r e s t i n th e G overnm ent’ s f i n a n c i a l
p o li c y i n p e a c e tim e a s w e ll as i n w a rtim e , A ll th ro u g h th e t h i r t i e s we
t a l k e d a good d e a l ab o u t t h e im p act o f t a x a t i o n on consum er s p e n d in g .
At t h a t tim e we w ere co n cern ed w ith in c r e a s i n g employment and n a t i o n a l
p r o s p e r i t y by in c r e a s in g consum er sp e n d in g .
Today, we a re c o n fro n te d w ith th e c o n v e rse o f t h a t p ro b lem . We
m ust f in d ways and means t o d is c o u r a g e consum er sp en d in g and en co u rag e,
s a v in g . Consumers m ust be c o n v e rte d t o w ar co n su m p tio n , j u s t a s in d u s t r y
and a g r i c u l t u r e have been c o n v e rte d t o w ar p r o d u c tio n . Bold t a x m e a su re s,
as w e ll as o th e r.w a r tim e o o n t r o l s , a r e n eed ed t o e f f e c t t h i s c o n v e rs io n .
37-14
W!'
2
The M agnitude of Our War E f f o r t
A lthough I d e a l w ith th e m a t t e r e v e r y d a y , I s t i l l f in d i t d i f f i c u l t
to a p p r e c ia te th e f u l l m ag n itu d e o f th e w ar program o u r Government has
u n d e rta k e n and th e e x t e n t t o w hich o u r N a ti o n 's v a s t p r o d u c tiv e r e s o u r c e s
have been m o b iliz e d ,
L et us f i r s t c o n s id e r th e f i n a n c i a l s id e o f o u r w ar e f f o r t . T his
month m arks th e end o f th e f i s c a l y e a r 1943. D u rin g th e p a s t 12 m onths
our Government s p e n t a p p ro x im a te ly *30 b i l l i o n and r a i s e d a b o u t th e same
amount b y ta x e s, and borrow ing.. S e a r ly $75 b i l l i o n o f t h i s t o t a l was s p e n t
d i r e c t l y f o r w ar a c t i v i t i e s — f o r p la n e s , g u n s, ta n k s , s h ip s , l e n d - l e a s e
a id to o u r A l l i e s , and f o r p ay , s u b s i s te n c e and eq u ip m en t f o r o u r f i g h t i n g
f o r c e s a t home and o v e r s e a s .
We e s tim a te t h a t i n th e . f i s c a l y e a r b e g in n in g two weeks hence
a b o u t f 100 b i l l i o n 'w ill be s p e n t f o r th e p r o s e c u tio n o f th e w a r. The
im m en sity o f o u r f i n a n c i a l p la n s f o r th e coming f i s c a l y e a r i s i n d i c a t e d
by t h i s s t r i k i n g c o m p ariso n ; a v e ra g e e x p e n d itu r e s p e r m onth w i l l exceed
th e l a r g e s t amount s p e n t by th e G o v e m a e n t i n any n o n -w ar y e a r i n i t s
h is to ry .
The r e c i t a l o f th e s e f i g u r e s r a i s e s i n a l l o u r m inds th e q u e s tio n ;
How w i l l we e v e r be a b le to p ay f o r i t a l l ? Our p r e s e n t t a x sy ste m w i l l
y ie ld a p p ro x im a te ly $38 b i l l i o n ( in c lu d in g th e $3 b i l l i o n a d d i t i o n a l
rev en u e u n d er th e p a y -a s -y o u -g o l e g i s l a t i o n ) i n th e coming f i s c a l y e a r ,
le a v in g a d e f i c i t i n th e n e ig h b o rh o o d o f $70 b i l l i o n . A d e f i c i t o f t h a t
m ag n itu d e would be 15 tim e s l a r g e r th a n th e h ig h e s t d e f i c i t we had d u rin g
any o f th e d e p r e s s io n y e a rs o f th e t h i r t i e s .
Let me a s s u r e you, how ever, t h a t la c k o f th e n e c e s s a r y w h e re w ith a l
w a ll n e v e r^ p re v e n t guns from r e a c h in g th e hands o f o u r s o l d i e r s o r bombs
from b l a s t i n g o u r en e m ie s. I n one, way o r a n o th e r o u r Government w i l l
r a i s e th e money t o pay i t s b i l l s .
There i s no need f o r any o f us to f e a r
t h a t th e n e c e s s a r y fu n d s w i l l n o t be r a i s e d . However, t h e r e i s a v e ry
r e a l need f o r a l l o f us to be c o n ce rn ed a b o u t how th e s e funds w i l l be
ra is e d
how much w i l l be r a i s e d b y t a x e s , and what k in d o f ta x e s w i l l
be u se d .
The f i n a n c i a l s id e o f th e w ar e f f o r t h a s i t s " r e a l " o r p h y s ic a l
c o u n t e r p a r t.
The r i s i n g t r e n d o f F e d e ra l sp e n d in g r e f l e c t s th e e x t e n t
to w hich o u r c o u n t r y 's r e s o u r c e s a r e b e in g draw n i n t o th e w ar e f f o r t .
I f we a r e to spend o n e - t h i r d more f o r war p u rp o s e s i n th e coming f i s c a l
y ear th a n i n t h e y e a r now d raw in g to a c l o s e , we w i l l r e q u i r e v a s t l y
more r e a l r e s o u r c e s •*- more men, m ach in es and eq u ip m en t - - i n o u r w ar
i n d u s t r i e s and armed f o r c e s . We w i l l o b ta in th e s e a d d i t i o n a l r e s o u r c e s
- 3 -
i n Y a rio u s w ay s.' P a r t w ild come fro m an e x p a n s io n o f th e w o rk in g f o r c e ,
e s p e c i a l l y th e b r in g in g o f women i n t o w ar p l a n t s . P a r t w i l l come from
more f u l l y u t i l i s i n g e x i s t i n g f a c i l i t i e s . P a r t m i l cone fro m new ly
c o n s tr u c te d p l a n t s b e in g b ro u g h t i n t o p r o d u c tio n .
F i n a l l y , p a r t w i l l come fro m d i v e r t i n g p e a c e tim e i n d u s t r i e s and p e rs o n
n e l to w artim e u s e s . I n an a l l - o u t w ar economy i t i s n o t p o s s i b le to m e in ta i
p e a c e tim e l i v i n g s t a n d a r d s . !jany c o m f o r ts , an d some th i n g s which A m ericans
h av e come to r e g a r d a s n e c e s s i t i e s , m ust be s a c r i f i c e d f o r th e w ar m a ch in e.
The Economic P a ra d o x o f a War Economy
The r a p i d p ace o f F e d e r a l s p e n d in g i n d i c a t e s more th a n th e e n c o u ra g in g
p r o g r e s s b e in g made in, w ar p r o d u c tio n . I t a ls o i n d i c a t e s th e huge sums b e in g
p a id o u t to p ro d u c e rs o f war m a t e r i e l , to w o rk e rs i n o u r f a c t o r i e s and
s h ip y a r d s , an d fa rm e rs in o u r f i e l d s . I t . i s t h i s d u a l a s p e c t o f w ar sp e n d in g
th e p ro d u c tio n a s p e c t and t h e income a s p e c t , w hich g iv e s r i s e to w hat I
have c a l l e d nth e econom ic p a ra d o x o f a w ar econom y.” I n a t o t a l w ar economy
income i s p l e n t i f u l , c i v i l i a n goods a r e s c a r c e . Consumers i n / th e a g g re
g a te e n jo y p r o s p e r i t y p o c k e ib o o k s, y e t th e y a r e f o r c e d to re d u c e t h e i r r e a l
co n su m p tio n to d e p r e s s io n l e v e l s .
Not u n t i l p e o p le r e a l i z e t h i s f a e t , n o t u n t i l th e y , a p p r e c i a t e t h a t
th e h i g h - l i v i n g s ta n d a r d s t h a t o r d i n a r i l y go w ith h ig h e a r n in g s a r e n o t
p o s s i b l e in w a rtim e , w i l l we be a b le to o p e r a te o u r economy a t maximum
e ffic ie n c y .
The econom ic p a ra d o x I h av e i n mind a r i s e s o u t o f th e f a c t t h a t th e
l a r g e s t p a r t o f o u r p r o d u c tio n to d a y goes to th e b a t t l e f i e l d i n s t e a d o f
th e m a rk e t p l a c e . I n a nonw ar p e r io d , m ost o f th e incom e e a rn e d in p ro
d u c tio n i s m atched by a c o rre s p o n d in g flo w o f hoods and s e r v ic e s .a v a il a b le
f o r co n su m p tio n . A lth o u g h some incom e i s s a v e d , t h i s i s b a la n c e d by
d is s a v in g , o r by in v e s tm e n t in hom es, i n d u s t r i a l p l a n t s , and e q u ip m en t,
and o t h e r d u r a b le s . When consum ers choose to sp en d m ore, t h e r e i s o r d i n a r i n
s u f f i c i e n t leew ay in th e p e a c e tim e economy to p e rm it th e in c r e a s e d demand
to s t i m u l a t e l a r g e r p r o d u c tio n o f th e th i n g s consum ers w ant to b u y .
T his s i t u a t i o n i s a l t e r e d d r a s t i c a l l y i n a war economy, "while incom e
and t o t a l p r o d u c tio n in c r e a s e h a n d - in - h a n d , consum er demand and s u p p lie s
a v a i l a b l e f o r consum er p u rc h a s e s move in i n v e r s e d i r e c t i o n s . A f te r we
have re a c h e d f u l l p r o d u c tio n , we can e x p e c t t h a t w ith e a c h in c r e a s e in w ar
p r o d u c tio n , consum er income and demand w i l l expand and s u p p lie s a v a i l a b l e
f o r c i v i l i a n u se w i l l c o n tra c t.
*
<
!@
m
- 4 -
I t i s t h i s d iv e rg e n c e b etw een demand and s u p p ly w hich i s th e b a s ic
cause o f i n f l a t i o n i n w a rtim e . The d iv e rg e n c e c a n n o t be c o r r e c te d from
th e su p p ly s id e , b e c a u se t h a t w ould n e c e s s i t a t e a s h i f t o f men and m achines
from w ar p ro d u c tio n t o nonwar p r o d u c tio n . I t would, mean t h a t we w ould
re d u c e o u r o u tp u t o f p la n e s , ta n k s , and s h i p s , and in c r e a s e o u r o u tp u t o f
r a d io s , r e f r i g e r a t o r s , and o th e r consum er g o o d s. The d iv e rg e n c e can b e ,
c o r r e c t e d , how ever, and t h e t h r e a t o f i n f l a t i o n c o u n te re d , i f m easu res
a re ad o p ted re d u c in g consum er demand p r o p o r t i o n a t e l y w ith th e r e d u c tio n s ,
i n a v a i la b l e s u p p l i e s . U n less t h i s i s done,' th e d iv e rg e n c e w i l l be
c o r r e c te d by s h a r p ly r i s i n g p r i c e s .
This i s th e is s u e we fa c e to d a y . Our p r o d u c tiv e r e s o u r c e s have been
m o b iliz e d and c o n v e rte d to w ar p r o d u c tio n . Now we m ust ta k e th e b o ld s te p s
n e c e s s a r y t o c o n v e rt consum ers t o a w artim e p a t t e r n o f co n su m p tio n . We
m ust re c o g n iz e t h a t t h i s w i l l r e q u ir e a H e rc u le a n e f f o r t on th e p a r t o f
a l l o f u s.
The e f f o r t , how ever, w i l l be w e ll rew ard ed , i f i n f l a t i o n i s
p re v e n te d .
M ethods o f D i s t r i b u t i n g t h e Economic C ost o f War
i/Vhen we ad o p t m e a su re s w h ich re d u c e consum er demand and remove th e
t h r e a t o f e x c e s s p u rc h a s in g power from th e m a rk e t, we a re i n e f f e c t taking,
d e l i b e r a t e a c t i o n t o a p p o r tio n th e econom ic c o s t o f th e w ar among our
c itiz e n ry .
H arder work .on th e one h and, and a low er s u p p ly o f consum er goods
and s e r v ic e s on th e o t h e r , c o n s t i t u t e th e p r i c e c i v i l i a n s m ust p ay to
w in t h i s w ar. They a re th e in e s c a p a b le econom ic c o s t s , th e r e a l b u rd e n ,
w hich m ust be m et now w h ile we a re f i g h t i n g .
F is c a l p la n n in g h a s no
'd i r e c t b e a r in g on th e m ag n itu d e o f th e t o t a l r e a l c o s t 'which m ust be
b o rn e , fo r t h a t i s d e te rm in e d by th e s iz e o f o u r w ar e f f o r t .
On th e o th e r
h and, f i s c a l p la n n in g h as a v e ry d i r e c t b e a r in g on how t h a t c o s t i s d i s t r i
b u te d among th e p o p u la tio n .
We m ust d e c id e w h e th e r we w ant to le a v e th e d i s t r i b u t i o n o f th e
w ar c o s ts t o th e ra v a g e s o f t h a t g re m lin o f o u r economy — i n f l a t i o n , o r
w h e th e r we w ant to u t i l i z e f i s c a l in s tr u m e n ts and o th e r in s tr u m e n ts a t ou r
d is p o s a l t o p la n th e d i s t r i b u t i o n so t h a t i t w i l l be a p p o r tio n e d e f f i c i e n t l y ,
from th e s ta n d p o in t o f an e f f i c i e n t l y o p e r a te d w ar economy, and f a i r l y ,
from th e s ta n d p o in t o f e q u i t y among co n su m ers.
Assume, f o r th e moment, t h a t we w ere r e l u c t a n t t o ta k e d e l i b e r a t e
a c t io n to p la n th e d i s t r i b u t i o n o f th e war c o s t s , and t h a t , as a r e s u l t ,
we l e f t th e d i s t r i b u t i o n to im p e rs o n a l econom ic f o r c e s . The w artim e
p a rad o x o f re d u n d a n t incom es and s c a r c e s u p p lie s would mean t h a t i f no
p
Sfefc
f O~
s te p s w ere ta k e n to c o n t r o l t h e e x c e ss p u rc h a s in g power a d i s a s t r o u s
p r i c e s p i r a l would i n e v i t a b l y o c c u r . The e x i s t i n g d i s p a r i t y betw een
demand and s u p p ly c o u ld be c o r r e c t e d in no o th e r way. We w ould have
i n f l a t i o n sim p ly b e c a u se to o much money w ould be co m p etin g f o r to o few
goods. By a tte m p tin g to spend t h e i r e n la r g e d incom es consum ers w ould
su cceed o n ly i n b id d in g up th e xaoney v a lu e , th e p r i c e s , o f th e a v a i l a b l e
go<x s .
The p h y s ic a l q u a n t i t y oi th e goeds a v a i l a b l e f o r co n su m p tio n
cou t n o t be in c r e a s e d , e x c e p t a t t h e ex p en se o f w ar p r o d u c tio n ,
A s m a ll p a r t o f th e w ar b u rd en h a s a l r e a d y b een d i s t r i b u t e d b y th e
e r r a t i c and i n e q u i t a b l e f o r c e s o f i n f l a t i o n . T his h a s r e s u l t e d b eca u se
o u r economy i s f u l l o f e x c e s s p u r c h a s in g power r e a d y to b id up p r i c e s
and d is o r g a n iz e th e flo w o f goods t o consum ers* A ll o f us a t tim e s have
. r e s !ielv 'es w hich w ere b a r e n o t b e c a u se th e t o t a l s u p p lie s w ere
i n s u f f i c i e n t i f th e y had b een a l l o c a t e d e q u i t a b l y , b u t s im p ly b eca u se
^ th e r s who g o t t h e r e f i r s t b o u g h t on th e b a s i s o f t h e i r h ig h e r in com es,
in s t e a d o f on th e b a s i s o f w artim e s ta n d a r d s o f c o n su m p tio n ,
Vi/Hen some consum ers h o ld s u b s t a n t i a l am ounts o f e x c e s s p u rc h a s in g
pow er, i t i s d i f f i c u l t f o r them to a d j u s t t h e i r sp e n d in g h a b i t s t o th e
n a t i o n a l consu m p tio n l e v e l demanded b y w a r, They a r e te m p ted to buy a s th e y
w ould i f t h e i r e a r n in g s had b een s i m i l a r l y in c r e a s e d i n p e a c e tim e . They
a re n o t e s p e c i a l l y m in d fu l o f w h e th e r th e y a r e b e in g ask ed t o pay h ig h e r
th a n c e i l i n g p r i c e s . At tim e s t h e y buy goods in e x c e s s o f a c t u a l n e e d s ,
i s r e g a r d i n g t h e f a c t t h a t b y d o in g so th e y compel t h e i r n e ig h b o rs t o da
w ith o u t th e s e g o o d s.
Such a c t s do n o t e s c a p e t h e e y e s o f o th e r consum ers who have n o t
re c e iv e d w artim e i n c r e a s e s i n t h e i r in co m es. B i t t e r f e e l i n g s r e s u l t
e c a u se o f th e i n j u s t i c e s t h a t a r e in v o lv e d , When p u rc h a s in g power i s
e x c e s s iv e , b la c k m ark et o p e r a to r s a r e q u ic k to s e n se th e s i t u a t i o n and
ta k e a d v an tag e o f i t . M oreover, ru n s on s t o r e s s t a r t q u ic k ly when some
one p ic k s up a f a l s e rumor a b o u t an im pending s h o r ta g e . Such c o n d itio n s
d a n g e ro u s ly underm ine consum er m o ra le , b eca u se th e y r e f l e c t b a s i c a l l y an
in e q u i t a b l e d i s t r i b u t i o n o f th e econom ic c o s t o f t h e w ar.
A d d itio n a l R easons f o r A v o id in g I n f l a t i o n
T here i s no need f o r me to d w e ll on th e e v i l s o f i n f l a t i o n , f o r th e y
a re w e ll known t o th e members o f t h i s a u d ie n c e . Consum ers' a r e a f f e c t e d
n o t o n ly by th e i n e q u i t a b l e a l l o c a t i o n o f th e w ar c o s t s . I n f l a t i o n p i l e s
many more h a r d s h ip s on to p . I t c o n f i s c a t e s much o f th e s a v in g s th e y have
a c c u m u la te d . By i n c r e a s in g t h e war c o s t s , i n f l a t i o n expands t h e p u b lic
e b t and i n t e n s i f i e s th e G overnm ent*s rev en u e n e e d s . I t le a d s t o w a ste and
in d i s c r im i n a te p r o d u c tio n , f o r i t becomes e x tre m e ly d i f f i c u l t t o p r e v e n t
r e a l r e s o u r c e s from flo w in g o u t o f w ar and e s s e n t i a l c i v i l i a n p r o d u c tio n
and i n t o th e a r e a s w hich o f f e r e d th e b e s t o p p o r t u n i t i e s f o r m oney-m aking.
F i n a l l y , i n f l a t i o n makes p o s tw a r a d ju s tm e n ts c o n s id e r a b ly more d i f f i c u l t
knd p a i n f u l .
Some o f th e co n seq u en c es o f i n f l a t i o n a r e l e s s t a n g i b l e . War w o rk ers
become in v o lv e d i n a s t r u g g l e f o r h ig h e r wages t o w hich th e y f e e l e n t i t l e d
b e c a u se o f th e s p i r a l l i n g c o s t o f l i v i n g . B u sin e ss men become a b so rb ed
i n p r i c e v a r i a t i o n s and d i s p a r i t i e s t o th e d e tr im e n t o f t h e i r p r o d u c tiv e
e ffo rts .
I f i n f l a t i o n sh o u ld become s e r io u s i n t h i s c o u n try - - and o u r G overn
m ent i s d e te rm in e d t h a t i t s h a l l n o t
i t w i l l mean t h a t we c i v i l i a n s
have f a i l e d m is e r a b ly i n o u r r e s p o n s i b i l i t y f o r s a f e g u a r d in g o u r d o m e stic
economy f o r th e s o l d i e r s and s a i l o r s who a r e f i g h t i n g .o u r b a t t l e s i n a l l
p a r t s o f th e w o rld .
P la n n in g th e B urden D i s t r i b u t i o n
There i s an a l t e r n a t i v e to le a v in g t h e d i s t r i b u t i o n o f th e w ar
c o s ts t o i n f l a t i o n .
I r e f e r t o t h e p o s s i b i l i t y o f p la n n in g an e f f i c i e n t
and e q u i t a b l e d i s t r i b u t i o n b y means o f d i r e c t and i n d i r e c t Government
c o n t r o l m e asu re s* Much p r o g r e s s h a s a l r e a d y b e e n made i n t h i s d i r e c t i o n ,
f o r p r a c t i c a l l y a l l p r i c e s a r e now s u b je c t t o c e i l i n g c o n t r o l s , and
r a t i o n i n g program s em b racin g a s u b s t a n t i a l p a r t o f t h e consum er Vs b u d g e t
have b een in tro d u c e d *
To th e e x t e n t t h a t th e s e c o n t r o l s a r e e f f e c t i v e ,
th e y e n fo rc e a p la n n e d d i s t r i b u t i o n o f th e eoonom ic b u rd e n o f th e w ar.
We c a n n o t e x p e c t, how ever, t h a t o u r r a t i o n i n g and p r i c e c o n t r o l
program s w i l l do th e jo b u n a id e d . These program s a r e b e in g s u b je c te d to
v e ry s u b s t a n t i a l m o n e tary p r e s s u r e a t th e p r e s e n t tim e , p r e s s u r e w hich
r e s u l t s from t h e v a s t amount o f e x c e s s p u r c h a s in g power i n t h e economy.
This p r e s s u r e p ro m ise s to in c r e a s e d u r in g th e re m a in d e r o f t h e w ar p e r io d ,
u n le s s i t i s r e l i e v e d by s i g n i f i c a n t t a x i n c r e a s e s . Each m onth o u r w ar
p ro d u c tio n program adds many b i l l i o n s o f d o l l a r s t o th e N a tio n ’ s b u y in g
power a t a tim e when th e amount o f goods to be b o u g h t i s d e c l in in g s t e a d i l y
The P r e s id e n t c a l l e d a t t e n t i o n t o . t h i s p ro b lem i n h i s B udget M essage o f
l a s t J a n u a ry when he s ta te d *
HA la r g e p o r ti o n o f t h i s e x c e s s b u y in g power m ust be re c o v e re d
i n t o th e T re a s u ry to p re v e n t t h e e x c e s s from b e in g u sed to b id
up th e p r i c e o f s c a r c e goods and th u s undermi.no th e s t a b i l i z a t i o n
program b y b r e a k in g p r i c e c e i l i n g s , c r e a t i n g b la c k m a rk e ts , and
in c r e a s in g t h e d o s t o f l i v i n g . ”
- :7 -
Our c i t i z e n s m ust r e a l i z e t h a t i f th e y ,a re e v e r to e n jo y th e f r u i t s
o f t h e i r in c r e a s e d e a r n i n g s , t h e y m ust p a y h e a v ie r ta x e s a n d , in a d d i t i o n ,
th e y m ust sav e more and sp en d l e s s o f th e sp e n d a b le incom e a v a i l a b l e * a f t e r
p a y in g t h e i r t a x e s , f o r i t i s o n ly by r e s t r i c t i n g consum er sp e n d in g t h a t
we can stem th e r i s i n g t i d e o f i n f l a t i o n .
T a x a tio n i s an im p o r ta n t in s tr u m e n t w hich can and s h o u ld be u s e d to
r e s t r i c t consum er sp e n d in g an d a s s i s t i n a c h ie v in g a p la n n e d d i s t r i b u t i o n
o f th e w ar c o s ts * I n c r e a s e d ta x e s w i l l a b s o rb some o f th e e x c e s s p u r
c h a s in g pow er an d th e r e b y r e l i e v e th e p r e s s u r e on e x i s t i n g p r i c e l e v e l s .
H e a v ie r ta x e s w i l l s e rv e a s a r e in f o r c e m e n t to r a t i o n i n g , f o r th e w ith d ra w a l
o f e x c e s s p u r c h a s in g pow er fro m p r i v a t e s p e n d in g c h a n n e ls v a i l d r iv e many
b la c k -m a rk e t o p e r a t o r s o u t o f b u s i n e s s . I n a d d i t i o n , t h e r e w i l l be l e s s
n e e d f o r e x te n d in g consum er r a t i o n i n g program s to in c lu d e goods n o t y e t '
under ra tio n in g .
T a x e s, h o w ev er, a r e a p o w e rfu l in s tr u m e n t an d m ust be u s e d w ith g r e a t
c a r e . I t i s n o t a s i f we w ere c o n s id e r in g th e f i r s t o f o u r war t a x i n
c r e a s e s , • Me have h ad s i g n i f i c a n t .Revenue A c ts i n ea c h o f th e p a s t th r e e
y e a r s . The y i e l d o f o u r F e d e r a l t a x sy ste m h a s i n c r e a s e d more th a n s i x
f o l d s in c e 194-0. Many o f o u r ta x p a y e r s a r c a l r e a d y f i n d i n g i t d i f f i c u l t
to pay t h e i r p r e s e n t t a x b i l l s . F o r th e s e r e a s o n s we m ust make a s p e c i a l
e f f o r t to a d j u s t o u r t a x i n c r e a s e s to th e econom ic an d f a m ily s t a t u s
o f 135 m i l l i o n A m ericans w ith w id e ly v a r y in g in c o m es, f i x e d com m itm ents,
and sp e n d in g r e q u ir e m e n ts . O b v io u s ly ,. i f we w ere to u s e th e t a x sy stem
i n d i s c r i m i n a t e l y , so t h a t consum er s p e n d in g was r e s t r i c t e d w ith o u t r e g a r d
to econom ic and f a m ily s t a t u s , th e r e s u l t i n g d i s t r i b u t i o n o f th e c o s t o f
t h e w ar m ig h t be a lm o s t a s u n d e s ir a b l e a s th e p a t t e r n w hich w ould have
r e s u l t e d i f th e d i s t r i b u t i o n h ad been l e f t to th e f o r c e s o f i n f l a t i o n .
W hile some h a r d s h ip s can be p r e v e n te d i f we u s e 't h e ta x sy stem w is e ly ,
we sh o u ld n o t l e t o u r s e lv e s b e l i e v e t h a t we can r a i s e th e n e c e s s a r y
a d d i t i o n a l am ounts by t a x a t i o n an d n o t f e e l th e p in c h . War im p o ses many
k in d s o f h a r d s h ip , an d th e f i n a n c i a l and econom ic h a r d s h ip s in d u c e d by
h eav y t a x a t i o n a r e f a r l e s s s e r i o u s th a n th e p h y s ic a l s u f f e r i n g t h a t many
m ust e n d u re . M o reo v er, th e y s im p ly r e f l e c t th e b a s i c f a c t s t h a t we must
work h a r d e r an d consume l e s s .
The C o n tr ib u tio n o f P a y -a s -y o u -g o
The r e c e n t l y e n a c te d p a y -a s -y o u -g o incom e t a x la w w i l l a s s i s t w artim e
f i s c a l p la n n in g . I t p la c e s 17 m i l l i o n income ta x p a y e r s on a f u l l y c u r r e n t
b a s i s w ith r e s p e c t to t h e i r 1943 t a x l i a b i l i t i e s . The re m a in in g ta x p a y e r s
w i l l be f u l l y c u r r e n t b y 1945 when t h e u n r e m itte d p o r ti o n o f t h e i r ' 1942 o r
1943 income t a x l i a b i l i t i e s w i l l hav e b een p a i d .
- 8 *.
The r e v ls e d t a x P ^an sh o u ld en co u ra g e p e o p le to save s y s t e m a t i c a l l y .
Most ta x p a y e r s w i l l now have an a c c u r a te c o n c e p tio n o f th e ta x l i a b i l i t i e s
th e y a re a c c ru in g a t t h e tim e th e y r e c e iv e t h e i r in co m es. T h e re fo re , th e y
w l U . be b e t t e r a b le to g e a r t h e i r sp e n d in g and t h e i r s a v in g to th e income
rem a in in g a f t e r t h e i r t a x l i a b i l i t i e s have b e e n d e d u c te d . Under th e o ld
system th e y w ould n o t know th e c o r r e c t amount o f t h e i r t a x l i a b i l i t i e s
and o f th e income a t t h e i r d i s p o s a l u n t i l M arch, 1944, when th e y p re p a re d
t h e i r t a x r e t u r n s fo r 1943.
The p a y -a s -y o u -g o law a l s o makes th e i n d i v i d u a l income t a x a much
more f l e x i b l e in s tr u m e n t f o r u se i n c o m b a ttin g i n f l a t i o n .
Tax r a t e changes
w i l l be r e f l e c t e d much so o n e r i n I n t e r n a l Revenue c o l l e c t i o n s . M oreover,
by p la c in g ta x p a y e r s on a c u r r e n t b a s i s , t h e new law p u ts them i n a much
b e t t e r p o s i t i o n to p a y th e h ig h e r ta x e s t h a t a r e c r i t i c a l l y needed a t t h i s
tim e »
The Amount o f A d d itio n a l Taxes Needed
To l i m i t consum er e x p e n d itu r e s d u r in g .1943 t o $80 o r $85 b i l l i o n —
th e e s tim a te d v a lu e o f th e s u p p lie s t h a t w i l l be a v a i l a b l e , assum ing t h a t
ru in o u s p r i c e r i s e s a re p re v e n te d — a t a tim e when income w i l l be co n
s i d e r a b l y i n e x c e ss o f t h a t am ount, w i l l r e q u i r e v e r y d r a s t i c p r u n in g ,
On th e o th e r h and, th e v e r y f a c t t h a t we need a l a r g e amount o f a d d i t i o n a l
revenue fo r a n t i - i n f l a t i o n a r y p u rp o s e s means t h a t th e money w i l l be t h e r e
t o pay th e n e c e s s a r y t a x e s . We need more t a x a t i o n b e c a u se o u r money i n
comes a re so much l a r g e r , For t h i s same r e a s o n we can a f f o r d t o pay more
t a x e s . I f o u r incom es w ere s m a lle r We w ould be a b le t o p ay l e s s , b u t t h e r e
would a l s o be l e s s need fo r a d d i t i o n a l t a x e s .
I n 1943 i n d i v i d u a l Incom es a f t e r p a y in g d i r e c t p e r s o n a l ta x e s u n d er
p r e s e n t law w i l l a g g r e g a te a b o u t $125 b i l l i o n . I n p ro s p e ro u s 1940 we had
l e f t o n ly $74 b i l l i o n a f t e r p a y in g t a x e s , and in 1932 t h e c o rre s p o n d in g
f ig u r e was $46 b i l l i o n . I n o th e r w o rd s, d e s p i t e th e s u b s t a n t i a l t a x i n
c r e a s e s o f r e c e n t y e a r s th e A m erican p e o p le w i l l have c o n s id e r a b ly more
money t o spend and to sav e i n 1943 th a n th e y had a t any tim e b e f o r e —
$51 b i l l i o n more th a n i n 1940, and $79 b i l l i o n more th a n i n 1932.
I f consum er sp en d in g t h i s y e a r i s to be li m it e d t o $80 o r $85 b i l l i o n ,
consum ers m ust sav e or p ay i n a d d i t i o n a l ta x e s b etw een $40 and $45 b i l l i o n .
T his amount i s ^ t h e d i f f e r e n c e b etw een th e c u r r e n t v a lu e o f th e a v a i l a b l e
goods and s e r v ic e s and th e $125 b i l l i o n o f d is p o s a b le income e s tim a te d
fo r 1943, i o r t y or f o r t y - f i v e b i l l i o n d o l l a r s i s an e x c e e d in g ly la r g e
amount to be ta k e n up i n an y one y e a r b y i n d i v i d u a l s a v in g s a lo n e . I t i s
a d a n g e ro u s ly la r g e amount from an a n t i - i n f l a t i o n v ie w p o in t, and an un
n e c e s s a r i l y l a r g e amount fro m th e s ta n d p o in t o f w hat t h e N atio n n o rm a lly
s a v e s . We. e s tim a te t h a t a n n u a l s a v in g s o f $20 b i l l i o n w ould be ample t o
- 9 -
c a r e f o r th e n eed s o f o u r c i t i z e n s . L iq u id s a v in g s o f i n d i v i d u a l s am ounted
to $10 b i l l i o n in 1941 and $5 b i l l i o n i n 1940.
The e s ti m a t e s o f incom e and consum er s u p p lie s i n d i c a t e t h a t t a x
p a y e rs as a gro u p can a f f o r d to p a y much h ig h e r war t a x e s . From an a n t i
i n f l a t i o n v ie w p o in t i t i s l i t e r a l l y t r u e to sa y th alj i n th e a g g r e g a te
th e y now hav e more money th a n i s good f o r them . I f th e '$ 1 6 b i l l i o n r e v
enue g o a l c i t e d by o u r P r e s i d e n t in h is J a n u a r y B udget M essage w ere en
a c te d i n t o la w , consum ers w ould s t i l l r e t a i n d is p o s a b le incom es c o n s id e r a b ly i n e x c e s s o f am ounts th e y have r e t a i n e d i n p r e v io u s y e a n s . They
w ould s t i l l b e a b le to b u y l a r g e am ounts o f War Bonds and to a c c u m u la te
r e c o r d t o t a l s a v in g s .
The C hoice b etw een A l t e r n a t i v e Tax M easures
I n s e l e c t i n g th e k in d o f ta x e s we w i l l u s e we can no lo n g e r b e gov
e rn e d bjr re v e n u e c o n s i d e r a t i o n s a l o n e . We m ust a s s ig n much w e ig h t to
th e e f f e c t i v e n e s s o f th e P a r t i c u l a r ta x i n r e d u c in g consum er sp e n d in g and
i n a l l o c a t i n g t h e t r e d u c t i o n among th e p eo p le * We m ust be c a r e f u l t h a t
th e new ta x e s do n o t e n c ro a c h h a r m f u lly on n e c e s s a r y l i v i n g s ta n d a r d s .
We s h o u ld t r y to d e s ig n th e t a x in c r e a s e s so t h a t th e y w i l l e f f e c t i v e l y
re a c h th o s e s e c t i o n s o f th e p o p u la tio n w hose incom es i n d i c a t e an a b i l i t y
to p a y h e a v i e r t a x e s .
M o reo v er, i n s e l e c t i n g ta x e s f o r th e p u rp o s e o f c o m b a ttin g i n f l a t i o n
we s h o u ld p a y p a r t i c u l a r a t t e n t i o n to th e e f f e c t s th e ta x e s w i l l have on
th e d i r e c t a n t i - i n f l a t i o n c o n t r o l s . I f th e ta x e s im p a ire d th e e f f e c t i v e
n e s s o f o u r p r i c e and wage s t a b i l i z a t i o n p ro g ra m s, t h e r e m ig h t be a n e t
l o s s , r a t h e r th a n a n e t g a i n , on th e a n t i - i n f l a t i o n f r o n t . F i n a l l y ,
en fo rc e m e n t o f th e new ta jre s sh o u ld n o t make u n r e a s o n a b le c la im s on
s c a r c e men and m a c h in e s.
T hese c r i t e r i a , a r e n o t c o n t r o v e r s i a l ; n e i t h e r a r e th e y d i f f i c u l t to
com prehend. A ll o f you c o u ld go th ro u g h th e l i s t o f ta x e s w hich have
b een s u g g e s te d a s w artim e re v e n u e m easu res and ch ec k them f o r t h e i r m e r its
a.nd e f f i c i e n c i e s i n th e l i g h t o f th e s e t e s t s . You w ould f i n d t h a t th e
incom e t a x r a n k s v e ry h ig h on y o u r l i s t ; a l s o t h a t a sp e n d in g s ta x
s a t i s f i e s th e s e c r i t e r i a , in many im p o r ta n t w ays. You would d is c o v e r t h a t
a s a l e s t a x h as s i g n i f i c a n t d e f i c i e n c i e s , e s p e c i a l l y b e c a u se i t w ould
f a l l h e a v i e s t on th e low incom e g ro u p s and. b e c a u se i t w ould i n t e r f e r e w ith
th e G o v ern m en t's s t a b i l i s a t i o n p ro g ram .
I s W artim e T a x a tio n Burdensome?
B e fo re c o n c lu d in g , I w ould l i k e to sa y a few
c e p t o f a, *Uax b u r d e n ,11 T axes have an a s s e t s id e
s i d e . I n p e a c e tim e , ta x e s w ere u se d to b u i l d o u r
p r o t e c t o u r l i v e s and p r o p ^ r t^ r , and to c r e a t e th e
w ords a b o u t th e con
a s w e ll a s a l i a b i l i t y
ro a d s an d s c h o o ls , to
d e m o c ra tic wav o f l i f e
10
-
w hich we a r e now f i g h t i n g t o p r e s e r v e . As A m ericans we know t h a t we
i a v e r e c e iv e d m o n e y 's w o rth from th e ta x e s we have mid. We c a n n o t sav
t h a t we have b e e n u n d u ly b u rd e n e d .
c a n n o t say
a id e o f t S e s ? 6
r e f f ° “ f o r lo o k ln « a t th e a ^ t
~
S « .
demand c o n s id e r a b ly more s a c r i f tv,
3Sy tk a ? waI"tim e i n f l a t i o n w ould
program i s to
tZ
Sa° r l f l c e s th a n • s o - c a l l e d "burdensom e" t a x
t a x f s ' r e m ere y ^ a H e ^ U y e l f * * 1 1 ^ ’ 1 ° t h e e x t e ^ t h a t h e a v i e r
c a n n o t o b je c t t o “ ^ 0 ^ ^ g ro u n d ^ t ^ f “ S T P id P riC e r i s e s * ™
burdensom e.
In d e e d w ^ h ^ i !
- 1 * , y w ould be e x c e s s iv e ly
W e n , f 0; o u r m r ' e c o n ^ 1 ° ° n S ld e r them a b l e s s i l ^
ra th ^
a
C o n c lu sio n
I s h a l l be g r a t i f i e d i f my o b se rv a tio n c ,
y o u r u n d e r s ta n d in g o f th e c h a p t e r o J I
^
m orning have ad d ed to
i n t im a te r e l a t i o n to th e m ^ v ^ r ^ t f ?? f a r tlm e ta x P roblem and i t s
o f a dem ocracy l i e s i f a n 3 " ^
f f \ tta C k ° n i n f l a « o n . . The s t r e n g t h
a s w e ll as m in e, t o make c l e L t ^ o W e l l o w ^
•* *S y ? u r r e s P O n s i b ili ty
f o r a d d i t i o n a l ’ t a x a t i o n a t th e p r e s e n t ^ 1^
“
® ° r i t i ° a l need
m e a su re s. ^ B u t 'l ^ h a v ^ c i t e d ' & * * & * *
to c a l l f o r beg* ta x
n e e d e d . A m erican consum ers w V r f S r t f L T ? T ! aSU res a r e u r Se ^ l y
w i l l be d i s t r i b u t e d e q u i ta b ly by
t o , e ?£ e c t t h a t th e w ar b u rd en
in fla tio n .
I am c e r t a ^ t h a t t L ™ ^ ? i , f a t h e r th a n f o r t u i t o u s l y by
in th i s r e s p e c t.
I know i £ £ i f w e T l
V ° d° “ U th e y oan
a *d
o u r w artim e econom ic p ro b lem A m e r i c a n
° l e a r t 0 them th e n a t u r e o f
h e a v i e r t a x e s , b u t th e y w i l l ’u ^ e t w
“ “ “ T " Wl11 n o t ° n ly g l a d l y pay
t o e n s u re t h a t o u r w ar e f f o r t s S f e r s no V
* e e n a c te d - ^ o r d e r
ris e s .
M oreover, th e y w i l l ta k e Ithl
^ ndTaxla^ from u n so u n d p r i c e
s^SP-s?SJSS'^rsv
b e c a u se i t r e q u i r e s u n r e m i tt i£ g e n d e a v o r. “ °
^
^
th ® ta s k
" I T IS OBVIOUS THAT THE MATERIALS AND EQUIPMENT WHICH REMAIN
IN STORAGE AT THE W P A YARDSj P D WHICH1HAVE ANT3TIMATEB VALUE OP
&NLYAO67OOO D0LLARS"REPRESENT BUT A SMALL FRACTION OF THE TOTAL AMOUNT
OF PROPERTY WHICH REMAINED FOR LIQUIDATION AFTER EIGHT YEARS OF W P A
OPERATIONS IN NEW YORK CITY.
\ tt
AS YOU KNOW FROM A REVIEW OF EXECUTIVE ORDER NO. 9235,
WHICH HAS ALREADY BEEN FORWARDED TO YOU,
THE PRIME OBJECTIVE OF
THE PROCUREMENT DIVISION IN TRANSFERRING SURPLUS MATERIALS IS TO
POSITIVELY iUOUnr- THE UTILIZATION TO THE FULLEST POSSIBLE EXTENT
OF EXISTING GOODS IN THE WAR EFFORT, AND TO AVOID THE MANUFACTURE
OF NEW GOODS WHEREfEVER POSSIBLE.
IT IS ESSENTIAL THAT THE GOVERNMENTS
INTERESTS IN SURPLUS PROPERTY BE PROTECTED BY CANVASSING
FIRST THE NEEDS OF AGENCIES OF THE FEDERAL GOVERNMENT, PARTICULARLY
S
THOSE DIRECTLY ENGAGED IN PROSECUTING THE WAR, BEFORE THESE MATERIALS
ARE SOLD
TO THE PUBLIC FOR USES NOT DIRECTLY CONNECTED WITH THE WAR.
/(
HOWEVER,- YOU JAY BE ASSURED THAT THE NEXT PHASE OF THE
PROGRAM'ifAS ALREADY Bmi-SfARTED, THAT WHICH CONTEMPLATES THE SALE
OF SURPLUS MATERJ-AtS TO TAX-SUPPOgJ£r'AUTHORITIES SUCH A§,?STATEs7
MUNICIPA^rtES, COUNTIES, ETCf7 AND TO CORPORATION^^ PRIVATE
IN^k I dUALS UPON CpriFlCATION BY THE WAR PRODUCTION BOARD OF JJ£gff
IN THE, WAR EFFORT•
AFTER SUCH NEEDS HAVE BEEN COMPLETEI^^ATISFIED,
IT IS CONTEMPLATED THAT SALE WILL BE MADE TO INDJVfSlJALS FOR USE IN
PRIVATE ENTERPRISE NOT DIRECTLY CONNECTED WITH THE WAR EFFORft * .
*tHIS PROGRAM OF LIQUIDATION IS MOVING IN AN ORDERLY AND
EXPEDITIOUS MANNER, ACCORDING TO THE BEST INTERESTS OF OUR GOVERNMENT
IN ITS PROSECUTION OF THE WAR. U
mm
TWX 5NEW YORK
JUNE 17-43
m C MACK
TREASURY DEPARTMENT
PROCUREMENT DIVISION
Jr
1943 JUN 17
M
I 15
m SHN DC
EGRAPH OFFICE
1R CHARLES\CHWARZ AT TREASURY WANTS THE FOLLOWlt®OF MR ALBRECHTS
/letter sent tcN iim VIA SPECIAL MESSENGER IMMEDIATELY
S'
\
JUNE 16-43
MR FRED CURRAN
NEW YORK JOURNAL^AlfeRICAN
220 SOUTH ST0&T
4EW YORK S
wmmmmmmmmmm
"REFERRING TO YOUR STORIES *«•>
15
■*MiniCftiff OF JUNE
AND 1 6 / PERTAINING TO WHEELBARROWS AND OTHER JXDERAL GOVERNMENT
PROPERTY IN THE W P A STORAGE YARD AT CORONA, LONG ISLAND, I FEEL THAT
A REVIEW OF THE FACTS WILL SERVE TO INFORM THE PUBLIC OF THE
GOVERNMENTS ACTIVITY IN DISPOSING OF THIS PROPERTY IN A MANNER MOST
ADVANTAGEOUS TO THE WAR EFFORT*
)
THE TIME THE WPA WAS ORDERED LIQUIDATED, THE PROCUREMENT
DIVISION OF THE TREASURY DEPARTMENT HAS TRANSFERRED FROM THE WAREHOUSE
AT CORONA IMMENSE QUANTITIES OF W P A PROPERTY - - SOME 60,000 INDIVIDUAL
UNITS*
DOHiARS.
OF- APPHOXiPMATELY ONE- AND
THESE TRANSFERS INCLUDED SUCH CRITICAL MATERIALS AS LUMBER,
MACHINE TOOLS, SHEET METAL EQUIPMENT, CUTTING TOOLS, SMALL TOOLS,
the
ETC.
Greater part of these materials are now being used in warwork by
THE ARMY, THE NAVY AND THE LEND-LEASE ADMINISTRATION.
f*IN AUDITION, THE W P A
ALSO EFFECTED SIZEABLE TRANSFERS OF
PROPERTY TO OTHER COMPONENT UNITS OF THE FEDERAL WORKS AGENCY,
PARTICULARLY THE PUBLIC ROADS ADMINISTRATION, FOR USE ON THE ALCAN
HIGHWAY.
TREASURY DEPARTMENT
Procurem ent D iv is io n
W ashington
For im m ediate R e le a se
The fo llo w in g l e t t e r has b een s e n t t o th e New
York Jo u rn al-A m eric an by F red S . A lb r e c h t, r e g io n a l
procurem ent o f f i c e r in New Y ork f o r th e T r e a s u r y 's
Procurem ent D iv is io n :
|
j
3
1 - 1
if
TREASURY DEPARTMENT
P rocurem ent D iv is io n
W ashington
FOR IMMEDIATE RELEASE.
T h u rsday, June 17, 19^3*
P re s s S e rv ic e
No, 37-*15
The fo llo w in g l e t t e r has been s e n t to th e New York
Journal-^-American by F red S, A lb re c h t, r e g io n a l procurem ent
o f f i c e r in New York f o r th e T r e a s u r y ’s Procurem ent D iv is io n :
" R e fe rrin g to your s t o r i e s o f June 15 end 16 p e r ta in in g
to w heelbarrow s and o th e r F e d e ra l Government p r o p e r ty in th e
WPA s to r a g e y a rd a t C orona, Long I s la n d , I f e e l t h a t a r e
view o f th e f a c t s w i l l se rv e to inform th e p u b lic o f th e
G overnm ent’s a c t i v i t y in d is p o s in g o f t h i s p ro p e rty in a man
n e r most ad v an tag eo u s to th e war e f f o r t ,
"From th e tim e th e WPA was o rd e re d l i q u i d a t e d , th e P ro
curem ent D iv is io n o f th e T re a su ry D epartm ent has t r a n s f e r r e d
from th e w arehouse a t Corona Immense q u a n t i t i e s o f WPA p ro p
e r t y — some 6 0 ,0 0 0 in d iv i d u a l u n its * These t r a n s f e r s i n
c lu d e d such c r i t i c a l m a te r ia ls as lum ber, machine t o o l s ,
s h e e t m e ta l eq uipm ent, c u t t i n g t o o l s , sm a ll t o o l s , e t c . The
g r e a t e r p a r t o f th e s e m a te r ia l s a r e now b e in g u sed in war
work by th e Army, th e Navy and th e L end-L ease A d m in is tra tio n .
"In a d d itio n , th e WPA a ls o e f f e c t e d s iz e a b le t r a n s f e r s
o f p r o p e r ty to o th e r component u n i t s o f th e F e d e ra l Works
Agency, p a r t i c u l a r l y th e P u b lic Roads A d m in is tra tio n , f o r use
on th e A lcan Highway,
" I t i s o b v io u s t h a t th e m a te r ia ls and equipm ent w^hich r e
main in s to r a g e a t th e WPA y a rd s r e p r e s e n t b u t a sm all f r a c
t i o n o f th e t o t a l amount o f p r o p e r ty w hich rem ained f o r l i q
u id a tio n a f t e r e ig h t y e a rs o f WPA o p e r a tio n s in Newr York C ity
"As you know from a rev iew o f E x e c u tiv e O rder No, 9^35>
w hich has a lr e a d y been forw arded to you, th e prim e o b je c tiv e
o f th e P rocurem ent D iv is io n in t r a n s f e r r i n g s u r p lu s m a te r ia ls
i s to in s u r e p o s i t i v e l y th e u t i l i z a t i o n to th e f u l l e s t p o s
s i b l e e x te n t o f e x i s t i n g goods in th e war e f f o r t , and to
av o id th e m an u factu re o f new goods w herever p o s s i b le . I t i s
e s s e n t i a l th a t th e G overnm ent’ s i n t e r e s t s in s u rp lu s p ro p e rty
be p r o te c te d by c a n v a s s in g f i r s t th e needs o f a g e n c ie s o f th e
F e d e ra l Government, p a r t i c u l a r l y th o s e d i r e c t l y engaged in
p r o s e c u tin g th e w ar, b e fo re th e s e m a te r ia l s a re so ld to th e
p u b lic f o r u se s not d i r e c t l y co n n ected w ith th e w ar,
■?This program o f l i q u i d a t i o n i s moving in an o r d e r ly and
e x p e d itio u s m anner, a c c o rd in g to- th e b e s t i n t e r e s t s o f our
Government in i t s p r o s e c u tio n o f th e w ar,"
\
TREASURY DEPARTMENT
Washington
Press Sendee
FOR RELEASE, MORNING MSRSPAPERS,
\
Tuesday, Juno 22, 1943.
2
7
- / 6
The Secretary of the Treasury announced la st evening that the tenders for $1,000,000,
or thereabouts, of 92-day Treasury b ills to be dated June 23 and to mature September 23, 19
which were offered on June IS, 1943, were opened at the Federal Reserve Banks on June 21,
The d etails of th is issue are as follows:
Total applied for - $1,374,628,000
Total accepted
- 1,006,087,000
(includes $71,938,000 entered on a fixed-price
basis at 99.905 and accepted in fu ll)
Range of accepted bids:
- 99.92*0 Equivalent rate of discount approx. 0.352^ per annum
• 99,904
»
« w
«
«
o.376% «
**
•* 99,904/
»
w e e
**
0.374% w
*
High
Low
Average price
(66 percent of the amount bid for at the low price was accepted.)
Federal Reserve
Bank__________
Total
Applied for
Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
26 ,780,000
855 ,068,000
43.275.000
51.537.000
22.978.000
9.965.000
163 ,851,000
56.487.000
7.630.000
26.410.000
15.392.000
TOTAL
Total
Acqept.d
$
22 ,496,000
557.345.000
35.944.000
46.473.000
21.567.000
9.761.000
134.423.000
4 1 . 254.000
7 .6 2 0 .0 0 0
23.731.000
.
15 165.000
9 5 . 255.000
90.308.000
$1,374,628,000
•1 , 006, 087,000
t&BASURY ^ISPAMKSW?
W a sh in g to n
Se r v ic e
* 3 7-16
FOR RELEASE, I W j ® l » S P A P M t S ,
T u e s d a y , J u n e 22, 1 9 4 3 .
E - 2 1 -4 3
The S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n in g t h a t
th e te n d e r s f o r $ 1 ,0 0 0 ,0 0 0 ,0 0 0 ,
u ry b i l l s
o r .th e re a b o u ts,
o f 92-day T re a s
t o be d a t e d J u n e 23 a n d t o n a t u r e S e p te m b e r 23, 1943,
w h ic h w e re o f f e r e d on J u n e 1 3 , 1943* w e re o p e n ed a t t h e F e d e r a l
R e s e r v e B anks on J u r e 2 1 .
The d e t a i l s o f t h i s
T o ta l a p p lie d , f o r
T o ta l a cc ep ted
e n t e r e d on a
in fu ll)
? Rang e
H ig h
low
A v e ra g e
p ric e
*
i s s u e a r e a s foOwI qws ;
§ 1 ,3 7 4 ,6 2 3 ,0 0 0
1 , 0 0 6 , 0 8 7 , 0 0 0 ( i n e lu d e s 3 § 7 1 ,9 3 8 ,0 0 0
s d - p r i c e b a s i s a t 9 9 ,5 0 5 an d a c c e p t e d
of accepted, b id s:
- 99.910 Equivalent ra te of discount approx. 0f352$
per annum
^
n;;;'
- 99.904 Equivalent ra te of discount approx, 0,376$
per annum *
j
, '
\
- 99*904 / Equivalent, ra te of discount approx, 0.374$
per annum
(66 r e r c e n t o f t h e am ount 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 . )
F e d e ra l R eserv e
Bank
T o ta l
Ap p l i e d f o r
B o sto n
New Y ork
P h ila d e lp h ia
C le v e la n d
Richm ond
A tla n ta
C h ic a g o
S t . L o u is
M in n e a p o lis
K a n sa s C i t y
D a lla s
San F r a n c i s c o
$
TOTAL
2 6 ,7 8 0 ,0 0 0
8 5 5 ,0 6 8 * 0 0 0
4 3 . 275.000
5 1 .5 3 7 .0 0 0
2 2 .9 7 8 .0 0 0
9 .9 6 5 . 0 0 0
1 6 3 ,0 5 1 ,0 0 0
5 6 .4 8 7 .0 0 0
7 .6 3 0 .0 0 0
2 6 .4 1 0 .0 0 0
1 5 .3 9 2 .0 0 0
9 5 .2 5 5 .0 0 0
$>1,374, 6 2 8 ,0 0 0
T o ta l
Acc
22, 496, 000
557, 345, 000
35, 944, 000
46, 473, 000
21, 567, 000 :
9 , 761, 000
134, 423, 000
41, 2 5 4 , 000
7, 620, 000
O
C
mJ9?)p731, 000
15 , 165, 000
9 0 , 308, 000
$ 1 ,0 0 6 ,0 8 7 ,0 0 0
I« t»
m t e e ternary X*
these of te c Series A-194S
patera SSsSiSTiV *M®t no In terest w ill accrue a fte r the maturity
of th e notes*
t* The cash redemption value .uarettnder during any month is the
««»* as the tan pays***! value f o r - t o t month m shown in the tab le on the
back of each note and m shewn in the tab les sppeoded to the respective
Issue circulars*
S» fotee presented fo r peyasnt hereunder west have the requests
for payaant properly executed and wait he surrendered* a t the ris k and
expense of the holder* to the Federal hessrve Bank or other agency th a t
issued the p articu lar notes*
CSigned) H. WORGtNlHMli « •
iintm i n w m
Secretary of the Treasury-
v ii
United States of America
tmumm m m -
tax
<41
sn »
4*1
A-A94S, A-1944,
A-194S
IMS
Department Circular Mo* 715
fM A Stm i DKfAKfUSKT,
Office of the Secretary,
la « h .ir ir to n , Ju n e 2 2 , 1943
f is c a l fServic#
Bureau of the Mobile .Debt
i,
f in if tO T of
sals
or
$ m im a- xm s .
{w ;
X* The sale of Tranent? Motes of f m $ triw A-1945, dated
fc(i
September l f X94£, pursuant to Bepertaeat Circular Mo* 695, dated
A
September I f , 194$, w ill terminate at the c lo se of business m Jm * 22#
1946*
is* emu. m m m im m m tm of tax sm m
m m m ss This cihcouil
1* fetaltbetandiaf the provisions of feartiwmt Circulars So* 66?,
dated July tf, 1941, as amended, Ho* 0749 dated December 1$, 1941, and
ie® 09$, dated September 1$, l?4f, limiting to their issue price the
cash surrender value of Treasury Motea of Tax Seriaa A-1945, dated
August lff 1941, Tax Series A-1944, dated January 1, 194$, Mid Tax Series
t-X§4% dated September 1, 194$, any such notes will be accepted, at the
option of the owners, at
my
time at or prior to maturity for cash re
demption at their tax payment value current et the time pf presentation*
freamury Motes of Tax series A-3J4B mature August 1, 1948, thoee of fax
rnmmmmmmmmmmi
^Harwifteri during wiy month, the cash redemption value of Treasury
T<m■Suvlags Kot.es of Series AIs the same as the lax^uysetit value for
tliat month, as shownin the table on the back o f each note, Motes prosented for cash redefinition Must have the request for payment properly
executed, andmust be surrendered to the Federal deserve Bank or other
agency that issued the particular notes.
*Moaction is being taken with respect to outstanding Treasury Tax
Savings dotes of Series B, which are largely held by corporations and
large taxpayers. As regards the Treasury Motes of Tax Series C, which
have been included in the general designation *Treasury TaxSavings Motes
and which are adapted not only for the accumulation of tax reserves, but
for the tetsporaiy or ahort-tera investment of idle cash reserves, the
sale of these notes will be continued without interruption, but hereafter
they will be designated Treasury Savings Motes of Series C."
m m aum
m wf
Washington
roa m iu m , mmina nwm*A,mm,
tmkfemdm. June 23* i & i *
Press Service
«».
5 7 - / 7
6 /2 ^ /4 3
3sereuury of the Treasury v^orgenthau taade the following statelet
to d a y i
"The current payment ©f iu tiivlau& l ineeste taxes and the collec
tion ef taxes throughwithholding pay at its source, provided by recent
tax legislation, sill largely serve the purpose heretofore served by
Treasury Tax having* totes off Series %which have been available since
August^j>%
1 for the convenience of small taxpayers*
M
4any incUviiiusas whohave aade advance provision for the payment
of Income taxes, through the purchase of these notes, nowfind they hold
rotes in excess of their future tax re«|yfree*s»i«*
45Twoactions are w being teisn first, the sale of Treasury Tax
Savings holes of dories 4 was discontinued at^eiase of business dune 22,
19431 anti second, the headers of any such notes ere being accorded the
privilege of redeswing their notes for cash, at the tax payment value
current at the time of presettatioru These changes are being made effective
through hepart&ent Circular ho* 713, lamed today*
•’flie privilege of cash redemption at tax paysseni value, will apply
to tne notes of the three issues of Series anotes nowoutstanding, and
&&ybe exercisea by the owners at any time, but attention is cabled to
the fact that interest ceases to accrue at the mataur!ty of the notes*
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS
j*re3hesday , June 23, 19^ 3,
P re s s S e rv ic e
No, 37-17
S e c r e ta r y o f th e T re a su ry M orgenthau made th e fo llo w in g
s ta te m e n t today*
l e c * t i n
by r e c n f t f i
P
n
f ^
I n d iv id u a l Income ta x e s and th e co l~
' w U “ 1? 1? ln S Pa* ^ i t s so u rce p ro v id e d
Many ln d lv l o u a ls who have made advance o ro v iflio n fnr» fha
o f income ta x e s , th ro u g h th e p u rc h a se o f th e s e n o te s now
f in d th e y h o ld n o te s In ex c ess o f t h e i r f u tu r e tax r e q u ? r e m R ts ?
xwo a c tio n s a r e now b eing’ ta k e n i
th p Oa io
o?yb u s l n l s r ^ n e N22eSl Q L 3 e n r A Was a ^ ° n t i n u e l a t I h f c l o s e
lneSw * ne 22,
and second, th e h o ld e rs o f any su ch
fo^ c a s h 6 a t ?hf.a ? ^ r ^ ed t h ? pl\l v i l e s« Of redeem ing t h e i r n o te s
t« L « « S
th e ta x payment v alu e c u r r e n t a t th e tim e o f p r e s e n -
m e n ^ irc S ^ H ^
thr0Ugh
“The p r i v i l e g e o f ca@h red em p tio n a t ta x payment v a lu e w ill
« L not;eSu ° f th e t h ^ e ls s u e a
S e r ie s A z o t e s how o u tte n tf « n gi«
J?£e r 2 l s 'ed
th e owners a t any tim e , b u t a t th e m a tu rity o f th e ° n o te s
^
i n t e r e a t oea8 es to aoorue a «
T rfina,'!^vr m f-t = r i . t:ur" ^ L any m onth> th e c a sh red em p tio n v a lu e o f
p Iv m e n tM w
N otes p f S e r le s A i s th e same as th e ta x
o f yea rh L f f 2r
m° h th , as shown in th e ta b le on th e b ack
r e a u e s t ? ! i . J ! S £ ! 8 p3’e s e ? te a f o r c a sh red em p tio n must have t h e
th e Ppdp->ai R o o f ^ p r o p e r ly e x e c u te d , and must be s u rre n d e re d t o
tui.u
L uwia rR nooLt e s 6, erV® dank o r o th e r a gency t h a t is s u e d th e parit
ury T a x ° S a v i^ « L , !
§ *aken Wri t h r e s Pe c t to o u ts ta n d in g T re a s
I1 ? s N o tss o f S e r ie s B, w hich a r e la r g e ly h e ld by
o f Tfiv l i ° r e
ta x p a y e r s . As r e g a rd s th e T re a su ry
ff N otes
n ^ X ?2i l e s G' w hich ^ v e been in c lu d e d in th e g e n e ra l d e s ig n a tio n ‘T re a su ry Talc S avings N otes,* and w hich a re a d a p ted n o t
| ^ y ^o r th e a c c u m u la tio n o f ta x r e s e r v e s , b u t f o r th e tem p o rary
or
in v- e- stm
n tw vo/of. id l e waou
4.-u^s h o r t-.te r m —
w e
ww
uiie
ie or
c a sh rr ev as ce rr vvtej ss ,, th
e ss aa le
of
u ! s ” ? e ® wi i;L, be ° ° " tln u e a W ithout i n t e r r u p t i o n , b u t h e r e a f t e r
y 111 be d e s ig n a te d T re a su ry S av in g s N otes o f S e r ie s C ."
The t e x t o f D epartm ent C i r c u la r No. 715 la as fo llo w s:
United States of America
TREASURY NOTES - TAX SERIES
A-1943, A-1944,
A-1945
1943
Department Circular Do. 7 15
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, June 22 , 19 4 3
Fiscal Service
Bureau of the Public Debt
I.
TERMINATION OP SALE OP SERIES A-1945.
September 1 , 942 L L u a n H o ^
f
^ 4 5 , dated
September 12, 1942
Oir0ular *>• 695. dated
1943.
’ 111 te™ « a t e at the close of business on June 22
II.
CASH REDEMPTION OP NOTES OP TAX SERIES
COVERED BY THIS CIRCULAR.
d a t e d 'J u i y ° 3 2 ^ 1941
amended^VN o f ° 6 7 4 t " ^ d r r b 6n^ ° W a r s *>• 667,
No, 695, d a te d S eptem ber 12 194?
+*
P000111^ 01* 15, 1941, and
c a s h s u r r e n d e r v a lu e o f
wJ
t0 t h e i r is s u e Prioe th e
A ugust 1 , 1941, T a r S e r i e r i l S / 0^ ! f TTax 5 e r i e s * -1 9 4 3 r d a te d
A -1945, d a te d S eptem ber 1 . 194? ' L
L * ,194? ' an d Tax S e r ie s
o p tio n o f th e ow ners a t anv h ». X
b n o te s w i l l be a c c e p te d , a t th e
d em otion a t t h e i r t a x payment v a lu e - ° r P” o r to raat u r i t y f o r c a s h r e T re a s u ry H o tes o f Tax S e r ie s A -194 3 m a t u r e V *
o f P re s e n ta tio n .
S e r ie s A-1944 m a tu re J a n u a w 1 i s l k
T
1943' th o s e o f Tax
m a tu re S eptem ber 1 , 1945 : no i n t e r e s t ^ i l l h° 86 ° f ^
S e r le s A~1945
o f th e n o te s .
i n t e r e s t w i l l a c c ru e a f t e r th e m a tu r ity
same a s th e ta x ' p a ^ f l t ^ v a l u / f o r ^ h a t ^ f S d u r i ^
month l s th e
th e b a c k o f e a c h n o te an d a s shown ?n tb t \ f B Sh°™ i n th e t a b l e oa
s p e c ti y e is s u e c i r c u l a r s .
t h t a b l e s ap p ended to th e r e
f e r p L e n r " o p e r rtSr e : e c u W d - \ an r m u 8t Sbre ,ln d e r T * W
th ® - o u e s ts
ex p en se o f th e h o ld e r t o th e P e i
s u r r e n d e re d , a t th e r i s k and
is s u e d th e p a r t i c u l a r 'n o t e s
a l H eServe Bank o r ° t h e r agency t h a t
(Signed)
H. MORGSNTHAU, JR.
Secretary of the Treasury.
■
-
8
-
No m a tte r what th e s a c r i f i c e , each one o f us must
manage somehow to s te p up our re g u la r purchase of
War Bonds f o r v ic to r y tomorrow, and f o r long y e a rs
of s e c u r ity a f t e r th e v ic to ry is won.
-O0O-
Because our co u n try needs o u r money; end we must
have i t ready to lend, to o u r c o u n try .
Our f i r s t
i n t e r e s t MUST BE th e w inning o f t h i s g re a t s tru g g le
f o r our l i b e r t y end our way of l i f e .
th a t n o th in g e ls e m a tte r s .
Compared to
To win th e w ar, and
p re se rv e our co u n try a s i t is f o r o u r c h ild re n to
e n jo y , we here a t home must now LEND our money as
f r e e ly as our s o ld ie r s and s a i l o r s a re GIVING t h e i r
b lood, and t h e i r very l i v e s .
We must pay th e high
ta x e s of w artim e, and on top o f th a t we must m a in tain
and add to our p u rch ases o f our N a tio n 's war Bonds.
I t ta k e s b o th , ta x e s and bonds, to w in .
Now of a l l tim es we cannot and must not l e t
our fig h tin g fo rc e s down.
Now o f a l l :
must in c re a s e , n o t sla c k e n , our e f f o r t s
tim es we
n
—
6
—
Thus on J u ly 1, w ith th e y e a r h a l f gone, you jw lll
have a lre a d y paid ta x on t h a t h a l f - y e a r 1s income*
For the r e s t of the y e a r you w i l l make f u r th e r
payments on your 1943 Income ta x through th e amounts
w ith h e ld from your pay.
In s h o r t, you a re 8paying a s you e a r n .8
T h is, in broad o u tl in e , i s the new way of paying
the Income Tax.
I hope th a t a l l of you w i l l fin d
th e new 8p ay -as-y o u -g o 8 system h e lp f u l, a s an
au to m atic way of budgeting y o u r ta x e s .
For to d a y , as never b e fo re , th e budgeting o f
a l l expenses is both a n e c e s s ity and a p a t r i o t i c
d u ty .
Now is th e time f o r c lo s e f ig u r in g , f o r
a c c u ra te c o n tro l o f our e x p e n d itu re s , f o r sav in g
every dime and every d o l l a r we p o s s ib ly c a n .
- 5 ~
The am ount wfo rg iv e n " , o r c a n c e lle d , v a rie s *
I f th e ta x i s $50 o r l e s s , th e e n t i r e amount is
fo rg iv e n .
I f th e ta x i s n o t more than $ 6 6 .6 7 , $50
is fo rg iv e n .
I f th e ta x exceeds $66.67, 3 /4 of i t
la fo rg iv e n .
The o th e r q u a rte r is s t i l l owed to
th e Government.
Thus, i f a man’s ta x was $100, he
Is fo rg iv e n $75 of i t , s t i l l owes $25.
That q u a r te r ,
s t i l l due th e Government, is payable in two p a r ts —
$12*50 on March 15, 1944, the o th e r $12.50 on
March 15, 1945.
A ll Income ta x payments made in 1943 ap p ly on
th e 1943 ta x .
The March and June in s ta llm e n ts
which you o r i g i n a l l y p aid on your 1942 Income, and
th e 5% V ic to ry ta x w ith h eld s in c e Jan u ary 1, w i l l
be c r e d ite d as payments on your 1943 t a x .
- 4 *
The amount- w ith h eld by th e em ployer end p aid
o ver to th e T reasury i s 20% o f th e wage over and
above th e exem ption.
Tills 20% a ls o In clu d es th e
V ic to ry Tax.
In o rd e r to p la ce ta x p a y e rs on a c u r r e n t
b a s is — th a t i s , paying t h i s y e a r ’s ta x e s o u t of
t h i s y e a r ’s income — Congress provided th a t a l l
o r a la rg e p a r t o f one y e a r ’ s Income ta x is to be
ab ated — o r ’’forgiven'*.
The ta x fo rg iv e n is f o r th e y e a r 1942 o r f o r
1943, w hichever is s m a lle r.
For the purpose o f
t h i s t a l k w@ w i l l assume th a t th e 1942 ta x i s the
sm aller#
But In g e n e r a l, payments made and w ith h e ld d u rin g
1943 w i l l d isc h a rg e h is 1943 ta x l i a b i l i t y , and
March 15th w i l l be J u s t a n o th e r day#
I t should be c l e a r ly understood t h a t th e em
p lo y e r does not, w ith h o ld 20% of the ^njtixe wage#
P a rt of every p e rs o n ’s wage i s exempt from w ith
h o ld in g I f th e employee f i l e s a c e r t i f i c a t e showing
h is fam ily s t a t u s .
For exam ple, a " s in g le p e rso n ”
has an exem ption o f $12 on h is weekly p ay .
That i s ,
I f h is pay Is $26, th e f i r s t $12 Is exempt and only
$14 is s u b je c t to th e d e d u c tio n .
A m arried p e rs o n ’s
exem ption i s $24 a week, and f o r each dependent he
g e ts a n o th e r $6 exem ption.
Thus a m arried person
w ith th re e c h ild re n having a weekly wage of say $60
would have $42 a week exempt from any w ithholding#
Most people w i l l pay t h i s ta x l i t t l e by l i t t l e ,
by the w ith h o ld in g method.
This sim ply means t h a t a
c e r t a in amount w ill be deducted
from each
pay en
velope o r s a la r y check, and tu rn e d o v er by the
employer to th e U nited S ta te s T reasu ry where I t
sta n d s to the ta x p a y e r's c r e d i t a s ta x c u r r e n tly p a id .
Thus when n ex t March 15th r o l l s around and th e
ta x p ay er f ig u r e s up, as u s u a l, th e ta x due the
Government on h is 1943 Income, he w ill fin d t h a t h is
ta x is la r g e ly o r w holly p aid in advance by th e
amounts a lre a d y w ith h e ld and c r e d ite d to him .
There may be a lew d o ll a r s s t i l l due the Govern
m ent, which he then p ay s,
o r th e re may be a sm all
o ver—payment, in which case th e Government g iv e s
him a refu n d o r a c r e d i t .
Em
!PAY-AS-YOU-GO"
ghtr"trr~au-I11ve-n-tm"
.0 U n a-^-lw^y*—
Beginning J u ly 1 s t, we Americans w i l l pay our
Income ta x e s a s we earn our money, b i t by b i t ,
payday by payday.
This i s the much d isc u sse d "pay-as-you-go"
system of c o l le c t in g th e F e d e ra l Income and V ic to ry
Tax.
la te .
Under th e o ld system Mr. Taxpayer p a id a y e a r
That I s , on March 15th he p a id , o r began
p ay in g , a tax on th e money he earned the p re v io u s
y e a r.
?||pPte
But from now on th e ta x he pays t h i s y e a r
i s on the money he e a rn s t h i s year*
treasury peparwctt
W ash in g to n
^ohw°L*°<!*r? 4 taljc ^
scheduled^jMfr^n0?
Assistant Secretary of the Treasury
“treasury Bondwagon" program is
»2rS£? Sr lv ro8do“t «t 10.30?.k..
*
TREASURYDEPARTM
ENT
Washington
(The following talk byAssistant Secretary of the Treasury
John L* Sullivan on the "Treasury Bondwagon" programis
scheduled to be broadcast at 10>30 P.M.t Eastern W
ar
lime, Saturday, June 19, 19A3, and is~for"release at
that time.)
*
"PAY-AS-YOU-GO"
Beginning July 1st, we Americans will pay our income taxes as we earn
our money, bit by bit, payday by payday*
This is the much discussed ’’pay—
as—
you—
go" systemof collecting the
Federal Income and Victory Tax. Under the old systemMr, Taxpayer paid
a year late. That is, onMarch 15th he paid, or began paying, a tax on the
money he earned the previous year. But fromnowon the tax he pays this
year is on the moneyhe earns this year*
people will pay this tax little by little, by the withholding
method. This simply means that a certain amount will be deducted fromeach
S
+y4.enVm
°pe or
salarY
eck, andtotuth
rn
over by thcredit
e emplo
the United
states
.treasu
ry w
here itchstands
eed
taxpayer’s
asyertaxtocurrently
P&1Q#
Thus when next March,15th rolls around and the taxpayer figures up, as
usual, the tax due the Government on his 194-3 income, he will find that his
tax is largely
credited
to himor
. wholly paid in advance by the amounts already withheld and
There maybe a few dollars still due the Government, which he then pays
Or there maybe a small over-payment, in which case the Government gives him
a refund or a credit, But in general, payments made andwithheld during
194oth
-3 will
discharge his 1943 tax liability, and March 15th will be just
an
er day.
^ should be clearly understood that the employer does not withhold
20$ of the entire wage* Part of every person’s wage is exempt fromwith
holding if the employee files a certificate showing his family status.
For example, a "single person" has an exemption of $12 on his weekly pay.
That is, if his pay is $26, the first $12 is exempt and only $ 14 is subject
to the deduction. Amarried person’s exemption is $24 a week, and for each
dependent he^gets another $6 exemption. Thus a married person with three
children
having a weekly wage of say $60 would have $42 a week exempt from
any withholding.
- 2 -
^ amount withheld hy t-he employer and paid over to the Treasury is
Vi^tory^Lr66 °V0r 8nd ab°Ve thS eX6mption* Thls 2C$ Blso includes the
+Mo In °^def to Place taxpayers on a current basis —that is, paying
or a large
larLSpart
p^rof°n
^ year:
’es'tax
inoom
Ceonab
gress
rovid
that all
of one year's
incom
ise ~to b
atedp—
ored“forgiven".
smaller6
i^ h f smaller.
iS ^
°SB
yaar 1 9 ^2 or for 1943, whichever is
talk W
e ViX1 asslme that ^ W42 tax
less Tda amo“lt "forgiven”, or cancelled, varies. If the tax is $50 or
«50 is forSven6
! forSiven- Jf tax is not. more than *66.67,
other quarter is stflT^ 6 tax ex°®ed®*66*67* 3/4 of it is forgiven. The
ftLOO he ^s fnrt ^ ^ ^ the Government. Thus, if a man's tax was
the
, ®tV9n °f 1 t> still owes |25. That quarter, still due
o te ^ - E s t
parts ~ $i2*50 °n March is; i9^
and June instSw lf ^ 8
a p p l7 on
W43 tax. The March
th
e
srVicto^
,
thh1^
° r i g i n a 1 1 7 paid on your 1942 incom
e, aen
ndts on
yo^TJ t f
11 s^ce January 1 , will be credited as paym
a l^ a d v L
•m
^
J
*w
^ax on
T f>
W ith blw y e a r h a l f g °n e > y ° “ w i l l have
*s , income* F o r th e r e s t o f th e v e a r vou
held fromyo^y ™ ^ 3 * * * 19 4 3 in00raB tex through the amounts withIn short, you are "paying as you earn."
I hopIhthat:tiT>r0rdoutlia®>f®the newway of paying the Income Tax.
an
tic w
wa
ay
v of budgeting1 your
th taxes.
f
"Pay-aS-you~go” systemhelpful,
an aStom
automatic
■■■
.as
!' thN
,aow
buis
deeting
ofeall
ensesfieurin?
is both for
aa necessitv^nd
necessity and fa patriotic duty.
the tim
forexp
close
dollar weCDossihl°f ^ expenditures>for saving every dime and every’
h
einitg of
read+vMto 1 endn;? our U
Se T * CO
U
y needinterest
s our monM
eyU;STaB
nE
dw
em
wainvn
country.
O
unrtrfirst
the
;ust
Compared to t h n t ^ + h • E tru f g le f o r our l i b e r t y and our way o f l i f e .
,
comtev as it ^ ?o^lng edsa ^ters. To win the war, and preserve our
o u T llL T ^ r il f
children to enjoy, we here.at home must nowLEND
an d +wl
fr^!y as our soldiers and sailors are GIVINGtheir blood*.
f ™ very+llves: must pay the high taxes of wartime, and on top
takes bothSt+
m
^ntaiH
d/ds,ddtot0 w0in.
Ur Purchases o£ ou*.-Nation’s W
ar Bonds.
1It
1 taxes
both, taxes
and S
bn
on
Nowof all times we cannot andmust not let our fighting forces down,
owof all times we must increase, not slacken, our efforts. Nomatter what
the sacrifice, each one of us must manage somehowto step up our regular
p
urchase
W
ar Bois
ndswfor
after
theofvictory
on. victory tomorrow, and for long years of security 1
-o O o -
TREASURY DEPARTMENT
W ash in g to n
(The fo llo w in g ^ t a l k by A s s i s t a n t S e c r e t a r y o f th e T r e a s u r y
Jo h n L, S u l l i v a n on th e ’’T r e a s u r y Bondwagon” p ro g rara i s
s c h e d u le d to be b r o a d c a s t a t 1 0 i 30 P.M, . Ea s t e r n War
June 1 9 3 1943. mid i s f o r r e l e a s e a t
t h a t tim e . )
*----- f—
’’PAY-AS-YOU-GO”
egin
ing b
July
1st,paw
eaA
our mB
on
ey,nbit
y bit,
yd
ym
berica
y payndsaywill
* pay our income taxes as we earn
iS th e
d iscu ssed "pay-as-you-go" system of c o lle c tin g the
V icto ry Tax. Under th e o ld system Mr, Taxpayer p aid
y ear l a t e . That i s , on March 15th he p a id , o r began paying, a ta x on the
money he earned the p rev io u s y e a r. But from now on the ta x he pays th is
y ear i s on th e money he earns t h is y e a r,
*
a
m
W
1 U pay t?usitax little
yethe
ithholding
rweth
v lodi°StT
i 1^h^P^
citply
means that a certain amolittle,
unt willbb
dedw
ucted
fromeach
°r
8
?L
a
r
y
oh
sck
’
311(1 turned over by the em
p
lo
y
er
to'the
United
States ireasury where it stands to the taxpayer's credit as tax currently
Thus when next March 15th rolls around and the taxoayer figures up. as
toTis larceS of ft-,'Government on his 1943 income, he will find that his
credited to hL!
7 P ln advanoe by ^ ^umts already withheld and
n
r- +nlfrea“Y
a all dollars
still
uevhich
the Gocase
vernm
ent,Gw
en pays.
Or there m
ybeba®sm
over-paym
ent, din
the
ovheich
rnmehnet th
gives
him
io/vfU
f-i°ia
°redlt*
^
in
general,
p
a
y
m
en
ts
m
a
d
e
a
n
d
w
ithheld
d
u
rin
g
194oth
3 wiil
discharge his 1943 tax liability, and March 1 5 th will be 0just
an
er day,
on*
clearly understood that the employer does not withhold
?x,?f
™
agye#
Part of
evei>y person’s
aggehis
is ex
emily
pt fro
mwith
holding if f^tire
the emp
lo
ee files
a certificate
showw
in
fam
status,
or example, a single person” has an exemption of $ 12 on his weekly pay*
. ,, 1S>
PaY <^26, the first $ 12 is exempt and only $ 14 is subject
the deduction, Amarried person’s exemption is $24 a week, and for each
dependeno he gets another $6' exemption. Thus a married person with three
T in gg . a WG'e k ly wage o f Sa^ &60 would have $42 a week exempt from
any wm
ith h oi ld
37-18
- 2 ~
5[w
The amount w ith h eld by th e employer and p aid over to the T reasury is
V ^ to r y ^ L c ! 386 ° Ver 3nd ab0Ve the eXemption<
...
This 2($ a lso in clu d es the
In onder to p lace tax p ay ers on a c u rre n t b a s is — th a t i s . paving
^ 13 l a r L St,a r ? 8o f 0Ut 0 f ^
^ a r 'S
~ ConSr(3SS P ro v id e d t t a t a l l
l a r g e p a r t o f one y e a r 's incom e ta x i s to be a b a te d — o r " f o r g iv e n " .
- m a i w 8 1? X^f ^ giVen iS
i s th e s m a lle r.
f ° l 019 year 1942 o r fo r 1913. whic
t a l k We WiU assura9
amo"n t "fo rg iv e n " , or c a n c e lle d , v a r ie s .
« * » * * tax
I f th e ta x i s $50 or
*$500 i?s ^forgiven.
!“
If the tax is not more than $66.67,
If theiaforeivon*
ta x exceeds $66.67, 3 /4 of i t is forgiven? T
he
$ 100r h r ^ n 16-6*11^ ^
to th ° ,GoVernm8«t * T h u s,. i f a m an's ta x was
$ 100, he i s fo rg iv e n $75 o f i t , s t i l l owes $25. That q u a r te r, s t i l l due
th e Government, i s payable in two p a r ts — $12.50 on March 15 , 1944, the
o th e r $12.50 on March 15 , 1945 .
’ J V t*
•,
and
Inna
ln 1943 W l y °n the 1943 ta x . The March
Jm e i n s t a l m e n t s wluch you o r ig in a lly paid on your 1942 income, and
/n .i° f ^
2? w ithhold s in c e January 1 , w ill be c re d ite d as payments on
ThUS ° n J u ly 1» w ith the y s a r h a lf g°n e > you w ill have.
„ L pai d
° n t h a t ^ f f - y o a r 's income. For the r e s t o f th e year you
***
held fromJo?,r ^ y f * " “
1943 inC°me t*3ctteouGh the amounts with.
In short* you are "paying as you earn*”
t a » d o u tlin e , i s th e new way of paying the Income Tax.
L autom
autom atic
^tioaw
a vo°f f /budgeting
? V 1+5L flnyour
d th taxes*
! n™ "Pay - as-you-go" system h e lp f u l, as
an
way
t
ta
For today, as never before, the budgeting of all expenses is both
a necessity and a patriotic duty. Nowis the time for close figuring* for
accurate ooutrol of °ur expenditures, for saving every dime and ever|
Imve.it r?
rppar^.to
ivStn1lend
? ° T lto ou
BercaU
Se our cou
nrtry
needinterest
s our monM
eyU;STaB
nE
dw
eemust
country.
O
u
first
th
inning of this great struggle for our liberty and our way of life.
Compared to that nothing else matters. To van the war, and preserve our
oun ry as i is for our children to enjoy, we here at home must nowLEND
pnri tv*1?7 aS fra?ly as our s°ldiers and sailors are GIVINGtheir blood*
n?
very lxv?s- m
ust pay the high taxes of wartime, and on top
It
takPsW
L+hSt+
maintaa:L
?b
an
ddas,dd
t0woinu*r Purchases of ou* Nation’s W
ar Bonds,
iti taxes
b
oth, taxes
nd
on
*to
Nowof all times we cannot andmust not let our fighting forces down*
Nowof all^times we must increase, not slacken, our efforts* Nomatter what
the sacrifice, each one of us must manage somehowto step up our regular
purchase of W
ar Bonds for victory tomorrow, and for long years of security
after the victory is won*
3 1 - /1
POE IMMEDIATE EELEASE
June '227 1943
<?3
The Bureau of Customs announced today preliminary figu res showing the quan
t i t i e s of coffee authorized for entry for consumption under the quotas for the
12 months commencing October 1, 1942, provided for in the Inter-American Coffee
Agreement, proclaimed by the President on April 15, 1941, as follow s:
Country of
Production
: Quota Quantity
:
( Pounds) ]J
9
9
Signatory Countries:
B razil
Colombia
Costa Eica
Cuba
Dominican Eepublic
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
2, 172,359,753
735,840,277
46,718,031
18,692,451
25,752,947
35,041,235
140,776,585
124,978,598
64,236,136
4,278,467
111,292,661
45,818,819
5,839,588
90,021,490
Non-signatory Countries:
B r itish Empire, except
Aden and Canada
Kingdom of the Netherlands
and i t s possessions
Aden, Yemen, and Saudi
Arabia
Other countries not signato r ie s of the In terAmerican Coffee Agreement
]J
Authorized for entry
for consumntion
As of (Date)
:
(Pounds)
June 12, 1943
tt
n
a
n
n
tt
tt
tt
it
tt
tt
tt
tt
469,020,002
426,340,679
24,820,370
9,932,739
17,280,116
16,688,325
96,060,220
61,122,130
50,205,850
2,855,723
50,767,^7219,797,623
217,797
57,949,707
)
)
)
)
) 75,969,017
)
)
)
)
)
)
Quotas revised as of March 5, 1943.
-oOo-
it
31,170,253
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
Wednesday, Ju n e 2 3 . 1943.
P r e s s S e rv ic e
No, 37-19
The B u reau o f Custom s announced to d a y p r e li m i n a r y f i g u r e s show ing th e quan
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 su m p tio n u n d e r th e q u o ta s f o r th e
12 m onths commencing O c to b e r 1 . 1942, p r o v id e d f o r i n th e In te r-A m e ric a n C o ffe e
A greem ent, p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941, a s f o llo w s :
C o u n try o f
P ro d u c tio n
S ig n a to ry C o u n tr ie s :
B ra z il
Colom bia
C o sta R ic a
Cuba
D om inican R ep u b lic
E cuador
El S a lv a d o r
G uatem ala
H a iti
Honduras
Mexico
N ic a ra g u a
P eru
V enezuela
N o n -sig n a to ry C o u n tr ie s :
B r i t i s h E m pire, e x c e p t
Aden and Canada
Kingdom o f th e N e th e r la n d s )
and i t s p o s s e s s io n s
)
Aden, Yemen, and S au d i
A rab ia
)
O ther c o u n t r i e s n o t s i g n a - j
t o r i e s o f th e I n t e r )
-American C o ffe e A g ree- )
ment
1/
Q uota Q u a n tity
(P ounds) 1 /
,3 5 9 ,7 5 3
,8 4 0 ,2 7 7
,7 1 8 ,0 3 1
,6 9 2 ,4 5 1
,7 5 2 ,9 4 7
,0 4 1 ,2 3 5
,7 7 6 ,5 8 5
,9 7 8 ,5 9 8
,2 3 6 ,1 3 6
,2 7 8 ,4 6 7
,2 9 2 ,6 6 1
,8 1 8 ,8 1 9
,8 3 9 ,5 8 8
,0 2 1 ,4 9 0
7 5 ,9 6 9 ,0 1 7
Quotas r e v is e d as o f March 5, 1943,
- 0 O0 -
A u th o riz e d f o r e n tr y
---------f o r co n su m p tio n
-Ag-Of (D ate)
:
(p o u n d s)
Ju n e 12,- 1943
H
4 6 9 ,0 2 0 ,0 0 2
4 2 6 ,3 4 0 ,6 7 9
2 4 ,8 2 0 ,3 7 0
9 ,9 3 2 ,7 3 9
1 7 ,2 8 0 ,1 1 6
1 6 ,6 8 8 ,3 2 5
9 6 ,0 6 0 ,2 2 0
6 1 ,1 2 2 ,1 3 0
5 0 ,2 0 5 ,8 5 0
2 ,8 5 5 ,7 2 3
5 0 ,7 6 7 ,4 7 2
1 9 ,7 9 7 ,6 2 3
217, 797
5 7 ,9 4 9 ,7 0 7
2 1 ,1 7 0 ,2 5 3
For Immediate R elea se
"Ph > s
3 '7:<£ - O
A check fo r $ 1 ,0 0 0 , b rin g in g t o t a l c o n tr ib u tio n
f niiii thn jj h11 11 itt— f 1 nrnn rl r
$5>000, was p resen ted
today to Under S ecreta ry D aniel W. B e ll by David M. N ew ell,
e d ito r o f F ie ld and Stream m agazine, on b eh a lf o f
readers
magazine in June, 1942, w ith an e d i t o r i a l a s s e r t in g th a t
American sportsm en wanted t o keep t h e ir own gu$s but th a t
they wanted to be sure t h a t members o f th e armed fo r c e s
reoeiv ed s u f f i c i e n t arias and ammunitions.
Scores o f c o n tr ib u tio n s have been re c e iv e d
sin c e the p u b lic a tio n o f th e e d i t o r i a l and th e money has
been turned over to th e Treasury to pay fo r Garand r i f l e s
at $85 each.
Included among th e c o n tr ib u to r s , accord in g
to Mr. N ew ell, a re a number o f Army men who w r ite they
want to h elp provide guns fo r o th er s o l d i e r s .
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday, June 24, 19
P r e s s S e r v ic e
No. 37-20.
A check f o r # 1,000, b r i n g i n g t o t a l c o n t r i b u t i o n s
t o #5,000, was p r e s e n t e d today t o Under S e c r e t a r y
D an ie l W, B e l l by David M, Newell, e d i t o r o f F i e l d and
Stream magazine, on b e h a l f o f r e a d e r s of h i e p u b l i c a
t i o n , who asked t h a t th e money be used to purchase
Garand r i f l e s .
A *Give ’Em Guns Fund” was s t a r t e d by th e .m a g a z in e
in dune, 19^2, w ith an e d i t o r i a l a s s e r t i n g t h a t American
sportsmen wanted to keep t h e i r own guns but t h a t they
wanted to be s u r e t h a t members of th e armed f o r c e s r e
c e iv e d s u f f i c i e n t arms and ammunition.
S co res o f c o n t r i b u t i o n s have been r e c e i v e d s i n c e
t h e p u b l i c a t i o n o f t h e e d i t o r i a l and t h e money has been
t u r n e d over to t h e T r e a s u r y t o pay f o r Garand r i f l e s a t
#35 e a c h .
I n c lu d e d among t h e c o n t r i b u t o r s , a c c o r d in g
to Mr, Newell, a r e a number o f Army men who w r i t e they
want to h e l p p r o v i d e guns f o r o t h e r s o l d i e r s ,
if to tfco fodoral m m m m book with tlui dopooltaiy’o rttlU M o*, and
the eeeond c o p y l ^ M
n l ao the depositary's record of the transactlent*
All aatiors in eaKutoetlas with tho ostabltshuoiit aad adalolstratlaii of
this systoa w ill ho handled through tho Mbm&
of tho Ohitod Otatos.
1 » l3 at fisc a l agents
IhialnUoAit instructions* application ferns* « to „ w ill
ho aado available ae oooxi o« possible*
After tho regulation! mm In of foot tho
federal reserve banks w ill notify o il books to thoir d lstriets as to tho basiko
which qualify thereunder ao depositaries for withhold taaeoo*
2
-
-
payments made to such depositary o f funds withheld as taxes.
The employer who withholds $100 or le s s during the month may e le c t eith er
to rw iit
a w'^Xori T22^ . cH.£ 0 O srf a * l 1
Ety\ &v^ k 6<a ffi
or to
tS e s « s f ilMir a » t
d ll Incorporated hanks which are insured by the federal Beposit Insurance
Corporation w ill be designated by the Secretary of the treasury to receive funds
withheld as taxes* and any such hanks may qualify to aot under the designation,
qualification w ill ho accomplished* through the federal reserve banks* upon the
execution of an application and agroeaont.
Arrangements w ill he aade whereby depositaries w ill he enabled to offset
expenses incurred in noting under their designations.
Arrangements for t his
■yaip.'iiie w ill he similar In principle JbiL those p lo y e d with reepeet to
existing dovernaent depositaries end finanolal agents.
&eeh bank which qualifies w ill aooept from eaployers deposits of funds
withheld as taxes* for account of the federal 'Reserve bank ef it s d istrict as
fisca l agent of the United States,
lealttanee of ths entire balance w ill he
aa&e to the federal reserve hank for account of the treasurer ef the United States*
when the balance equals or exceeds $5*000.
Such realttaaoss* howevsr* w ill net
be eade nor# frequently than daily and at ths sad of each aonth the entire helance
w ill he resitted,
d ll remittances w ill he In funds iaaedlately availabl# at ths
federal ressrvs hank point.
4t ths tine of rooolvisig a deposit of withheld taxes* ths depositary w ill
issus to the e»ployer a receipt therefor In tho fora proscribed by the Secretary
ef the treasury, ths receipts w ill bs preparsd in triplicate*^** fir st copj
T
c
r ^
r ^
^ c / v v % ?J L
3
/CT
Jb^,
CaA J
iU^vv<LA«4
jQ
^
tsu a m i m pixm m
■ feaklngte*
N
w^ rmr
Wm
/
a/
S trv io i
c w S
to *
_, June H i .i p j *
ii
«*
3 7 -H
Bssrstary Korgsnttum aumooncsd today that rs*olstt<m» srs M a g prspsrsd
»yaM. wbioh a l l teaks insured l>ytfas M M k Bsposlt Insurance Osrpsratlea Mjr
■RSSfe
^galttr as Sovsraasat dapotitmrias to r « « l w withhold terns*
Ste re*elatl«i» ars telag iaausd mdwr ths Onrrsn* tax I’aynsat dot of l f | } ,
S©s
approrsd.
m
\34f' , 19*»J. Wndsr tha arraa«a»mt,withheld t e n s w ill te available
to tte freaaury on a oorroat te s ts , tefote e«plsyari‘ quarterly tea return# a n
ssadfs to aollsetor* of lataraal rename.
iaiiiiiU.i.iil ■« ll'HirS «w ^w s® iR 8St
8S§
Information misused hy the « i i i w
■
i
lltgllg
®jSgS>|
illt li
|lp # l
B i
ij pafeaPS
P |4
]fl|Jj|
of Internal hevonoe in Circular
copies of which any he obtained fro# collectors of internal revenue, i t to
tho of foot that on or before the loot day of the month following tho close of
•Mh quarter* every employer will ho reqfotrod to maSee a to* return to tho
collector of h it district* covering the aggregate amount of taacee withhold during
that Quarter.
It w ill ho i l l duty of every employer who withholds wp * than $100 daring
tho month to pay# within 10 days after tho eloto of onoh month* to « dspositayy
M £
WSmiS&lh.-i.
K-‘^
nffOwlffy
authoritod hy the Secretary of the treasury to receive tuoh payments* e ll fends
withhold no toroo daring that months except that amounts withheld during tho ln»t
noath of a quarter nay* at tho olootlon of tho employer* ho remitted directly to
tho collector with the d ela y er1e tan return*
In making payment to the collector of the amount due ae shown on the tax
return* the employer moot attach thereto receipts* in the form approved hy the
Secretary of the treasury* issued hy the authorised depositary evidencing
;
•biding s e n t to th e
th e seco n d cop
r e s e r v e "bank w ith th e d e p o s ita r y * s r e m itta n c e * and
l§^«rg r e t a i n e d a s th e d e p o s ita r y * s r e c o r d o f th e t r a n s a c t i o n # .
A ll m a tte r s i n c o n n e c tio n w ith th e e s ta b lis h m e n t an d a d m i n i s t r a t i o n o f
t h i s sy stem w i l l he h a n d le d th ro u g h th e F e d e r a l r e s e r v e ba,nks a s f i s c a l a g e n ts
o f th e U n ite d S t a t e s .
R e g u la tio n s , i n s t r u c t i o n s , a p p l i c a t i o n fo rm s, e t c . , w i l l
he made a v a i l a b l e a s soon a s p o s s i b l e .
A f te r th e r e g u l a t i o n s a r e i n e f f e c t th e
F e d e ra l r e s e r v e banks w i l l n o t i f y a l l ban k s i n t h e i r d i s t r i c t s a s to th e banksw hich q u a l i f y th e re u n d e r a s d e p o s i t a r i e s f o r w ith h e ld t a x e s .
2 -
paym ents made to su c h d e p o s it a r y o f fu n d s w ith h e ld a s t a x e s .
The em ployer who y i th h o ld s $100 o r l e s s d u rin g th e m onth may e l e c t e i t h e r
to r e m it auoK m ^nthlac w ith h o ld itt* to th e c o l l e c t o r w ith , h i s Q u a r te r ly t a x r e t u r n
or to
mnntrK
A ll i n c o r p o r a te d h an k s w hich a r e in s u r e d hy th e F e d e r a l D e p o s it In s u ra n c e
C o rp o ra tio n w i l l he d e s ig n a te d h y th e S e c r e t a r y o f th e T r e a s u r y to r e c e iv e funds
w ith h e ld a s t a x e s , an d an y su ch banks may q u a l i f y to a c t u n d e r th e d e s ig n a t io n .
Q u a l i f i c a t i o n w i l l he a c c o m p lis h e d , th ro u g h th e F e d e r a l r e s e r v e h a n k s , upon th e
e x e c u tio n o f an a p p l i c a t i o n an d a g re e m e n t.
A rran g em en ts w i l l he made w hereby d e p o s i t a r i e s w i l l he e n a b le d t o o f f s e t
r.pttraaose w i l l h e s i m i l a r i n p r i n c i p l e w it h th o s e em ployed w ith r e s p e c t to
e x i s t i n g Government d e p o s i t a r i e s an d f i n a n c i a l a g e n ts
S ach hank w hich q u a l i f i e s w i l l a c c e p t from em p lo y ers d e p o s it s o f funds,
w ith h e ld a s t a x e s , f o r a c c o u n t o f th e F e d e r a l r e s e r v e h an k o f i t s d i s t r i c t a s
f i s c a l a g e n t o f th e U n ite d S t a t e s .
R e m itta n c e o f th e e n t i r e b a la n c e w i l l he
made to th e F e d e r a l r e s e r v e h an k f o r a c c o u n t o f th e T r e a s u r e r o f th e U n ite d S ta te s
when th e b a la n c e e q u a ls o r e x ce ed s $ 5 ,0 0 0 .
Such r e m i t t a n c e s , h o w ev er, w i l l n o t
he made more f r e q u e n t l y th a n d a i l y an d a t th e en d o f ea c h month th e e n t i r e b alan ce
w i l l he r e m i t t e d .
A ll r e m i tt a n c e s w i l l he in fu n d s im m e d ia te ly a v a i l a b l e a t th e
F e d e r a l r e s e r v e hank p o i n t .
At th e tim e o f r e c e i v i n g a d e p o s it o f w ith h e ld t a x e s , th e d e p o s it a r y w i l l
i s s u e t o th e em p lo y er a r e c e i p t t h e r e f o r i n th e form p r e s c r i b e d hy th e S e c r e ta r y
TREASURY B2PARTM3NT
W ashington
FOR M U B I m S RELEASE, M o ?(V W 6
Od'frnrfLi^e? J-une 2 ^ 1 9 % *
P r e s s S e r v ic e
No.
A / £ u S p ^ £ f? S
S e c r e t a r y M orgenthau an n ounced to d a y t h a t r e g u l a t i o n s a r e "being p r e p a r e d
u n d e r w hich a l l "banks in s u r e d hy th e F e d e r a l D e p o s it In s u r a n c e C o rp o ra tio n may
q u a l i f y a s Government d e p o s i t a r i e s t o r e c e iv e w ith h e ld t a x e s .
The r e g u l a t i o n s a r e "being is s u e d u n d e r th e C u rre n t Tax Paym ent A ct o f 19^3*
a p p ro v e d Ju n e
.9* 19^3-
U nder th e a rra n g e m e n t, w ith h e ld ta x e s w i l l "be a v a i l a b l e
to th e T re a s u r y on a c u r r e n t " b asis, "before e m p lo y e rs 1 q u a r t e r l y t a x r e t u r n s a r e
made t o c o l l e c t o r s o f i n t e r n a l r e v e n u e .
I t w ill
bank* an oppo^,
m a n y ^ d d iiy ^ n ^ i
"7
'th e Grovernmekt an«
G o v d fn m erity b u sijh f^ ss i ^ t h e i t & ^ o c a i cW5nminfc*ties.
I n fo rm a tio n r e l e a s e d by th e C om m issioner o f I n t e r n a l Revenue i n C ir c u la r
WT, c o p ie s o f w hich may be o b ta in e d from c o l l e c t o r s o f i n t e r n a l re v e n u e , i s to
th e e f f e c t t h a t on o r b e f o r e th e l a s t day o f th e m onth f o llo w in g th e c lo s e o f
e a c h q u a r t e r , e v e ry em ployer w i l l be r e q u i r e d t o make a t a x r e t u r n to th e
c o l l e c t o r o f h i s d i s t r i c t , c o v e r in g th e a g g r e g a te am ount o f ta x e s w ith h e ld d u rin g
th a t q u a rte r.
I t w i l l be th e d u ty o f e v e ry em ployer who w ith h o ld s more th a n $100 d u rin g
th e month to p a y , w ith in 10 days a f t e r th e c lo s e o f e a c h m onth, to a d e p o s ita r y
a u t h o r i z e d by th e S e c r e t a r y o f th e T r e a s u r y t o r e c e iv e su c h p a y m e n ts, a l l funds
w ith h e ld a s ta x e s d u rin g t h a t m onth; e x c e p t t h a t am ounts w ith h e ld d u r in g th e l a s t
m onth o f a q u a r te r may, a t th e e l e c t i o n o f th e e m p lo y er, be r e m i t t e d d i r e c t l y to
th e c o l l e c t o r w ith th e e m p lo y e r ^ ta x r e t u r n .
In m aking paym ent to th e c o l l e c t o r o f th e amount due a s shown on th e t a x
r e t u r n , th e em ployer m ust a t t a c h t h e r e t o r e c e i p t s , i n th e form a p p ro v e d b y th e
S e c r e t a r y o f th e T r e a s u r y , i s s u e d by th e a u t h o r i z e d d e p o s it a r y e v id e n c in g
fit 7
I W U M M I— O W H I I O H M H *
iJ
c J L u tftv
/0~*-£k-*J^
o-o^-/'
AAJ^
c3C^
k
*ytJL»-++Ji
f
$
,
p
HIM o fi m
Mr* Schwarz
H(
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Monday. June 28. 19*n.
5 3 5 5 ^ $ — '----------- --------------------------—
P r e s s S e r v ic e
No. 37-21
S e c r e t a r y Morgenthau announced today t h a t r e g u l a t i o n s a re
b e in g p r e p a r e d under which a l l banks i n s u r e d by t h e F e d e r a l De
p o s i t I n s u ra n o e C o r p o r a tio n may q u a l i f y as Government d e p o s i
t a r i e s to r e c e i v e w i t h h e l d t a x e s .
p=„™»«+e i r f gUi a ^ h 2 8 a r e b e l n S I s s u e d u n d e r th e C u rre n t Tax
L t w L i S J 9 ^3, a? ? f ^ ed June 9, 19*3, Under th e a r r a n g e ment, w ith h e ld t a x e s w i l l be a v a i l a b l e to t h e T re a s u r y on a
c u r r e n t b a s i s , b e f o r e employers* q u a r t e r l y t a x r e t u r n s a re
made to c o l l e c t o r s o f I n t e r n a l r e v en u e ,
m en?1
.
I n f o r m a t i o n r e l e a s e d by th e Commissioner o f I n t e r n a l Revenue
in C i r c u l a r WT, c o p i e s of which may be o b t a i n e d from c o l l e c t o r s
r e Iv!nUe4t i s *Q tile e f f e c t t h a t on o r b e f o r e th e l a s t
_y or t h e month f o l l o w i n g t h e c l o s e of each q u a r t e r , every emP lo y e r w i l l be r e q u i r e d to make a t a x r e t u r n to t h e c o l l e c t o r
J?1!
c o v e r i n g th e a g g r e g a t e amount of ta x e s w i t h
h e ld d u r i n g t h a t q u a r t e r ,
d u t y of every employer who w ith h o ld s more
2° duZln % t h e mont h to pay, w i t h i n 10 days a f t e r th e
eacil month, t o a d e p o s i t a r y a u t h o r i z e d by t h e S e c r e t a r y
1° r e ?®iv e such Payments, a l l funds w ith h e ld a s
monthI exc ept t h a t amounts w ith h e ld d u r i n g t h e
a q u a r t e r may, a t th e e l e c t i o n o f t h e employer, toe
t u r r r t 6 ^ d l r e ° t l y to th e c o l l e c t o r w ith t h e em ployer‘ s ^ t a x r e shown1 L m? £ i n § Paym?ht to th e c o l l e c t o r o f th e amount due as
°n , t h ® t a J r e t u r n , t h e employer must a t t a c h t h e r e t o r e i s s u e d ^ h v tKo6 form approved by t h e S e c r e t a r y o f th e T re a s u r y ,
suoh
v+ e a u ^ ^ ° ^ f zad d e p o s i t a r y e v i d e n c i n g payments made to
such d e p o s i t a r y o f funds w i t h h e l d as t a x e s ,
may
w^ * ? ° l d s ttOO 01>
d u r in g th e month
w i t h K ? 01' e i t h e r to r e m i t th e amount w i t h h e l d t o t h e c o l l e c t o r
d epositor
*
m U ™ o r t o pay ltJ monthly to an a u t h o r -
2
A ll i n c o r p o r a t e d banks which a r e i n s u r e d by the F e d e r a l
D eposit I n s u r a n c e C o r p o r a tio n w i l l be d e s i g n a t e d by th e S e c r e
t a r y of the T r e a s u r y to r e c e i v e funds w i t h h e ld as t a x e s , and any
such banks may q u a l i f y to a c t under t h e d e s i g n a t i o n , Q u a l i f i
c a t i o n w i l l be accom plished, th ro u g h t h e F e d e r a l Reserve banks,
upon th e e x e c u ti o n o f an a p p l i c a t i o n and agreement*
Arrangements w i l l be made whereby d e p o s i t a r i e s w i l l be en
a b le d t o o f f s e t expenses i n c u r r e d i n a c t i n g under t h e i r d e s i g
n a t i o n s , Such arrangem ents w i l l be s i m i l a r In p r i n c i p l e to
t h o s e employed w ith r e s p e c t to e x i s t i n g Government d e p o s i t a r i e s
and f i n a n c i a l a g e n t s ,
Each bank which q u a l i f i e s w i l l a c c e p t from employers de
p o s i t s o f funds w i t h h e l d as t a x e s , f o r account of th e F e d e r a l
Reserve bank of i t s d i s t r i c t as f i s c a l age nt of th e U nited
S t a t e s . R em ittance of th e e n t i r e b a l a n c e w i l l be made to t h e
F e d e r a l Reserve bank f o r account of t h e T r e a s u r e r of th e U nited
S t a t e s , when th e b a l a n c e e q u a ls o r exceeds $ 5 , 0 0 0 , : S u c h - r e m it
t a n c e s , however, w i l l not be made more f r e q u e n t l y than d a l l y
and a t t h e end of each month th e e n t i r e b a l a n c e w i l l be r e m i t t e d
A ll r e m i t t a n c e s w i l l be in funds im m ediately a v a i l a b l e a t the
F e d e r a l Reserve bank p o i n t .
At th e time of r e c e i v i n g a d e p o s i t of w ith h e ld t a x e s , th e
d e p o s i t a r y w i l l i s s u e to the employer a r e c e i p t t h e r e f o r in t h e
form p r e s c r i b e d by th e S e c r e t a r y of th e T r e a s u r y , The r e c e i p t s
w i l l be p r e p a r e d i n t r i p l i c a t e , The o r i g i n a l i s to be r e t a i n e d
by t h e employer u n t i l f i l e d w ith h i s q u a r t e r l y r e t u r n . The
f i r s t copy w i l l be s e n t to t h e F e d e r a l Reserve bank w ith th e
d e p o s i t a r y ’s r e m i t t a n c e , and th e second copy w i l l be r e t a i n e d
as th e d e p o s i t a r y ' s r e c o r d of th e t r a n s a c t i o n ,
A ll m a t t e r s in c o n n e c tio n w ith t h e e s t a b l i s h m e n t and admin
i s t r a t i o n o f t h i s system w i l l be h an d le d th ro u g h the F e d e r a l Re
s e r v e banks as f i s c a l a g e n ts of th e U nited S t a t e s . R e g u l a t i o n s ,
i n s t r u c t i o n s , a p p l i c a t i o n forms, e t c , , w i l l be made a v a i l a b l e
as soon as p o s s i b l e . A f t e r th e r e g u l a t i o n s a r e i n e f f e c t th e
F e d e r a l Reserve banks w i l l n o t i f y a l l banks i n t h e i r d i s t r i c t s
as to t h e banks which q u a l i f y t h e r e u n d e r as d e p o s i t a r i e s f o r
w ithheld ta x e s,
- 0O0-
- 3f 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 u b s e q u e n t p u r c h a s e , and th e anwuri I
a c t u a l l y r e c e iv 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 in g th e ta x a b le
y e a r f o r w hich th e r e t u r n i s m ade, a s # r d in a r y g a in o r l o s s .
T re a s u ry D ep artm en t C i r c u l a r No. 4 1 8 , a s am ended, and t h i s n o t i c e , Pr e “ | |
s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g o v e rn th e c o n d i tio n s o f t h e i r i s s u e .
C opies o f th e c i r c u l a r may b e o b ta in e d from an y F e d e r a l R e se rv e Bank o r B ranch.
- 2 ~
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and orice range of accepted bids. Those
submitting tenders will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be final,]
Subject to these reservations, tenders for $100,000 or less fromany one bidder at
99«905 entered on a fixed-price basis will be accepted in full. Payment of accepted
tenders at the prices offered must be made or completed at the Federal Reserve Bankj
in cash or other immediately available funds on .farmBO. lQli/3____ .
m
—
The income derived fromTreasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such, ,
and loss fromthe sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts nowor hereafter enacted. The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt fromall taxation nowor hereafter imposed
on the principal or interest thereof by anj 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 fromconsideration 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 betv/een the price (paid J 3
t
X T . T a r T-A
TREASURY DEPARTMENT
Washington
FORRELEASE, M
ORNINGNEW
SPAPERS,
Friday, June 25. 1943_________ •
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1.000.000.000 *or thereabouts, of 92 -day Treasury bills, to be issued ]
— — ' f e f ------gJT
on a discount basis under*competitive and fixed-price bidding as hereinafter pro
vided. The bills of this series will be dat^d June 30, 1943______ arK*
mature September SO. 19A3 , when the face amount will be payable without
>
in te re s t.
|
They w i l l b e i s s u e d i n b e a r e r form o n ly , an d i n d e n o m in a tio n s o f #1,000,1
$ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , an d $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y v a l u e ) .
\
Tenders will be received at Federal Reserve Banks and Branches up to the j
closing hour, two o’clock d. m., Eastern W
ar. time, Monday, June 28. 1943____ * ,
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 printed 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 fromincorporated banks and ||
trust companies and fromresponsible and recognized dealers in investment securi- ji
ties. Tenders fromothers must be accompanied by payment of 2 percent t f 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.
Im 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 o p ened a t th e Federal!
3]
TREASURY DEPARTMENT
Washington
• "
FOR RELEASE, MORNING NEWSPAPERS,
F r id a y , June 25, 19^3*________
The S e c r e t a r y of t h e T re 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 , 000, OOO,000, o r t h e r e a b o u t s of 92day T re a s u r y b i l l ' s , to be- i s s u e d on a d i s c o u n t b a s i s ' u n d e r
c o m p e t i t i v e and fixed-^price b i d d i n g as h e r e i n a f t e r p r o v id e d ,
- The b i l l s o f t h i s s e r i e s w ill- be d a t e d J u n e 1'l3^v l 9 ^ 3 / : and
w i l l mature September *30, 19^3, when; -the- face' amount w i l l
“'be pay a b le w ith o u t I n t e r e s t .
They w i l l ' b e - i s s u e d ' i n b e a r e r
form on ly , and in denom ination’s o f ' $1 , 000, $5 , D0O:, $10 , 000,
$100, 000, $500, 000, and $1 , 000, OOO ( m a t u r i t y 1 v a lu e K
.
Tenders w i l l be r e c e iv e d a t -Federal Reserve Banks ana
Branches up to the--, d o s i n g hour, two" o ’c lo c k p-, m ,, : E a s t e r n
•War time, Monday, June 2g , 19^3*. Tenders w i l l n o t - h e " r e
ce iv e d a t th e T re a su ry Department, Washington. Ea6h t e n d e r
must be f o r an even m u l t i p l e of $1 , 000, a n d - th e prices O ff e r e d
must b e e x p r e s s e d on t h e . b a s i s o f 100, with* not more than
t h r e e d e c i m a l s , ’ e. g . , 99*925* F r a c t i o n s may not be use d .
I t i s urged t h a t t e n d e r s be made o n - t h e p r i n t e d forms and
forw arded in th e s p e c i a l en v e lo p es which w i l l be s u p p l i e d by
F e d e r a l R eserve Banks o r Branches o n ' a p p l i c a t i o n t h e r e f o r *
Tenders w i l l be r e c e i v e d w ith o u t d e p o s i t from l 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
ognized d e a l e r s i n in v e stm e n t s e c u r i t i e s ; Tfendefs from
o t h e r s must be accompanied-by payment of 2 p e r c e n t 'o f t h e
-face-amount of 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 d s ‘t h e t e n d e r e
a r e accompanied by an e x p re s s g u a r a n ty of payment by an i n
c o r p o r a t e d bank o r t r u s t company.
Im m ediately a f t e r t h e c l o s i n g hour, 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 Reserve Banks and Branches, 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
th e T r e a s u r y o f t h e amount and p r i c e range of a c c e p te 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 advised of th e a c c e p ta 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 o f th e T re 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 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 ,
in whole o r i n p a r t , and h i s a c t i o n in any such r e s p e c t s h a l l
be f i n a l .
S u b j e c t to th e s e r e s e r v a t i o n s , t e n d e r s f o r
$100,000 o r l e s s from any one b i d d e r a t 99*905 e n t e r e d on a
f i x e d - p r i c e b a s i s w i l l be a c c e p te d in f u l l , Payment of
3 7 -2 2
(Over)
2
a c c e p te 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 com
p l e t e d a t the. F e d e r a l Reserve Bank. in. c a s h o r o t h e r immedi
a t e l y a v a i l a b l e ’ funds on June J O , 19^3*
The income d e r i v e d from T re a su ry b i l l s , whether i n t e r e s t
o r g a in from th e s a l e o r o t h e r d i s p o s i t i o n of the, b i l l s ,
s h a l l not have any exemption, as such, 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 reasury, b i l l s s h a l l not have
any s p e c i a l t r e a t m e n t , as such, u n d er F e d e r a l ' t a x Acts now
o r h e r e a f t e r e n a c te d . The b i l l s s h a l l he 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 , whether F e d e r a l or
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 of the, U nited 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 p u rp o se s of t a x a t i o n the
amount o f d i s c o u n t at 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 ld by t h e U n ite d S t a t e s s h a l l be c o n s i d e r e d to be i n t e r e s t .
Under S e c t i o n s ^2 and 117 ( a ) ( l ) of t h e I n t e r n a l Revenue
Code, as amended b y ' S e c t i o n 11§ o f t h e Revenue Act of 19^1,
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 not b e - 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 , ' r e d e e m e d or o th e r w is e d is p o s e d o f , and such b i l l s
a r e excluded 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 . Accord
i n g l y , t h e owner of 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
ance c o m p a n ie 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 between t h e p r i c e p a i d f o r such
b i l l s , w hethe r on o r i g i n a l i s s u e o r on subse quent p u r c h a s e ,
and the 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
demption 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 ' w h i c h 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. *4T£>, 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 t h e T re a su 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 s o f t h e i r i s s u e . " Copies o f t h e c i r c u l a r
may be o b t a i n e d from1 any F e d e r a l R eserve Bank o r Branch,
-oCo-
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2?-
S e c r e ta r y M orgenthau, to d ay c a l l e d upon th e Am erican p e o p le
to in v e s t " c o n s id e r a b ly more" th a n 10 p e r c e n t i n th e T re a s u r y ’s
P a y r o ll S avings P la n .
The P r e s id e n t c a l l e d t h i s p la n " th e
g r e a t e s t s in g le f a c t o r we now have i n p r o t e c t i n g o u r s e lv e s
a g a in s t i n f l a t i o n a r y sp e n d in g . 1
The P r e s i d e n t ’ s l e t t e r en d o rsed th e T re a s u r y ’s new campaign
to in c r e a s e in v e stm e n ts i n i/a r Bonds th ro u g h th e P a y r o ll S avings
P la n from 420 m il lio n to 600 m il lio n d o l l a r s p e r m onth.
T his
^
cam paign g o t undeijway June 15 i n 180,000 firm s and p l a n t s ti^ u g h o u t th e c o u n try .
C o n g ra tu la tin g th e A m erican p e o p le on t h e i r s p le n d id re c o rd
so f a r i n s u p p o rtin g th e v o lu n ta r y p a y r o l l sa v in g s p la n , th e
P r e s id e n t s a id :
” 1 hope ev e ry A merican on a p a y r o l l w i l l f i g u r e o u t f o r
h im s e lf th e e x te n t to w hich he can c u r t a i l h i s s p e n d in g , and
w i l l p u t e v e ry d o l l a r o f a d d i t i o n a l s a v in g th u s made i n t o th e
p a y r o l l s a v in g s p la n ."
The f u l l t e x t o f th e P r e s i d e n t ’s l e t t e r to S e c r e ta r y
M orgenthau f o llo w s :
TREASURY DEPARTMBI?
Washington
FOR MEDIATE RELEASE,
Thursday, June 24, 1943.
Press Service
No. 37-23
President Roosevelt, in a le tte r to Secretary Horgenthau,
today called upon the American people to invest "considerably
more" than 10 percent in the Treasury’s Payroll Savings Plan.
The President called th is plan "the g reatest single factor we
now have in protecting ourselves against in flatio n a ry spending."
The P re s id e n ts le tte r endorsed the Treasury’s new campaign
to increase investments in War Bonds through the P ay ro ll' Savings
Plan from 420 m illion to 600 m illion d o llars per month5, This
campaign got under way June 15 in 160,000 firms and plants through
out the country.
Congratulating the American people on th e ir splendid record
so far in supporting the voluntary payroll savings plan, the
President said:
"I hope every American on a p ay ro ll Will figure out for
himself the extent to which he can c u rta il h.vs spending, and
w ill put every dollar of additional saving thus made into the
payroll savings p la n .t!
The fu ll tex t of the P resid en t’s le tte r to Secretary
Morganthau follows:
THE WHITE HOUSE
Washington
June 24, 1943
JJty dear Mr, Secretary:
Through you, as Secretary of the Treasury, I want to con
gratulate the American people on the way in which they have sup
ported the voluntary payroll savings plan.
I am proud of the fa c t th a t 27,000,000' p a trio tic Americans are
regularly investing more than $420,000,000 a month to help pay the,
c o s t o f the war.
And s i n c e a ll of th is money comes from wanes and
salaries -- nearly 90 percent from people earning less than $5,000,
and the bulk of i t from those working in war plants — I do not
the g reatest single
h e s i t a t e t o say. t h a t t h e p a y r o l l s a v i n g s p l a n
factor we now/ have in protecting ourselves against in flatio n ary
spending.
This is a great record, both from the standpoint of curbing
in fla tio n and from the standpoint of financing the war. However,
I heartily endorse your present drive to improve th at record, and
I agree i t must *be improved i f we are to keep pace with the in
creasing demands of the war.
I therefore join you in callin g upon the American people -and upon labor- and management p a rtic u la rly — to do s t i l l more.
Additional people should be convinced of the necessity of p a r tic i
pating. Everyone now on the, payroll savings plan should m aterially
increase the amount of bonds he is buying. We o rig in ally asked for
10 percent, but now we need considerably more,
I hope
everyV American on a i.pavroll
w ill figure
out for himself
JL
t/
w
the extent to winch he can c u rta il his spending, and w ill put every
dollar, of additional saving thus made into the payroll savings plan,
Sincerely yours,
/S / FRANKLIN D. ROOSEVELT
The Honorable,
The Secretary of the Treasury.
on an equal percentage b asis, to be publicly announced.
Allotment notices will
be sent cot promptly open allotment.
iv. patusit
1.
Payment
*
at par and accrued in terest, i t any, lor note* allotted herewd.
meat be made or completed on o r before duly 12, 1943, or on later allotment, b
every oaco where payment la not so eomploted, the payment with application up to
A I
2 percent of the amount o f notea applied for ahall, upon declaration made by the
Secretary of the Treasury In hie discretion, be forfeited to the United State*.
j
Any qualified depositary w ill be permitted to make payment by credit for note*
allotted to i t for ita e lf and its customers up to any amount for which i t shall
be qualified in excess of existing deposits, whsn so notified by the Federal Be*
serve Bank of i t s d istr ic t.
y. mhb «&prnnsxms
1.
{
As fisc a l agents of the United States, Federal Reserve Banks are author- j
iced and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treaeury to the Federal Re
serve Banka of the respective d istr ic ts, to issue allotment notices, to restive
payment for notes allotted , to make delivery of notes on full-paid subscription!
allotted , and they may issue Interim receipts pending delivery of the definitive
notes.
2* The Secretary of the Treasury may at any time, or from time to time,
j
prescribe supplemental or amendatory rules and regulations governing the offering!
which w ill be communicated promptly to the Federal Reserve Banks*
,
HMRT MOROShmU, JR.,
Secretary of the Treasury*
and regulations as shall be prescribed or approved by the Seerstary of the
treasury In payment of income and profits taxes payable at the maturity of the
notes*
4.
the notes w ill be acceptable to secure deposits of public moneys*
5,
Bearer notes with in terest coupons attached w ill be issued in denomina-
tion* of #500, #1 , 000, #5 , 000, #10, 000, *100,000 and #1 , 000, 000.
tb* not*, will
act be issued in registered form.
4.
the notes w ill be subject to the general regulations of the treasury
Department, now or hereafter prescribed, governing United States notes.
in . M
1.
m
|i§
AIXOtMSHT
Subscriptions w ill be received at the Federal Eeserve Banks sad Branch*
and at ths trsasury Dspartswmt, Washington.
Subscribers must agres not to sail
or otherwise dispose of thsir subscriptions, or of ths secu rities which may bs
allotted thereon, prior to ths d osing of ths subscription books. Banking insti
tutions generally may submit subscriptions for account of customers, but only
the Federal leserve Banks and the Treasury Department are authorised to act as
o ffic ia l agencies. Others than banking in stitu tion s w ill not bs permitted to
enter subscriptions except for th sir own account.
Subscriptions fro* banks and
trust companies for thsir own account w ill bs received without deposit.
Sub
scriptions from a ll others mast bs accompanied by payment o f I percent of the
amount of notes applied for*
a.
the Secretary of the Trsasury reserves the right to reject any subscrip
tion , in whole or in part, to a llo t le ss than ths amount o f notes applied for,
and to d o se the books as to ary or a ll subscriptions at any time without notiesj
and any action he may take in these respects shall bs f in d .
Subject to these
reservations, subscriptions for amounts up to and including $100,000 d l l be
allo tted in fu ll, and subscriptions for amounts over 1100,000 w ill bs allotted
URXTSD STATES OP AMSRXCA
1*1/2 FMomt TMmmm m otes or $ m m a- 1947
Dated and bearing in terest from July 12, 1943
One September 15, 1947
Interest payable March 1$ and September 1$
TREASURT 1IMIHMT,
Office of the Secretary,
Washington, June 2S, 1943.
1943
Department Circular He* 716
Fiscal Service
Bureau of the Public Debt
1.
1.
OFFERIKG OP BOTES
The Secretary of the Treasury, pursuant to the authority of the Second
lib erty Bond Aot, aa amanded, Invites subscriptions, at par and accrued interest,
from the people of the United States for notes o f the United States, designated
1*1/2 percent Treasury Botes of Series 4*1947.
The amount of the offering is
#2,500,000,000, or thereabouts*
11.
1*
DESCRiraOH OF BOTES
Ths notes w ill be dated July 12, 1943, and w ill bear in terest from that
date at the rate of 1*1/2 percent per annum, payable on a semiannual basis on
September 15, 1943, and thereafter on March 15 and September 15 in each year
u ntil the principal amount becomes payable*
They w ill mature September 15, 1947*
and w ill not be subject to ca ll for redemption prior to maturity.
2,
The Income derived from the notes shall be subject to a ll Federal taxes
now or hereafter Imposed*
The notes shall be subject to estate, inheritance,
g ift or other excise taxes, whether Federal or State, but shall be exempt from
a n taxation now or hereafter Imposed on the principal or in terest thereof by
any State, or any of the possessions of the United States, or by any local tax-
lug authority.
3* The notes w ill be accepted at par during such time and under such rules-
nwhfflmm
Washington
fob
smmm, m m i m
im s p a p ib s ,
« June 27. 1 9 4 3 .-----------
Press Service
3 7 - tY
Secretary o f the Treasury Morgenthau today announced a regular Treasury
o fferin g designed to r a ise ad d ition al funds in advance o f the Third War I/xm
D rive, which i s scheduled to sta r t i s Septeaber. The se c u r itie s being
offered are l~ l/2 percent Treasury Sets* o f S eries A-1947* They are o ffered ,
through the Federal Reserve Banks, fo r cash subscription a t par and accrued
in te r e st, in the amount o f $2,500,000,000, or thereabouts. The books w ill
be opened on Monday morning* Jane 2B, fo r th e receip t o f su b scrip tion s.
There w ill be no r e str ic tio n s as to the b a sis fo r subscribing fo r th is issu e .
The notes w ill be dated July 12, 1943, and w ill bear in te r e st from th at
date a t the rate o f 1-0./2 percent per annua, payable on a semiannual b a sis on
September 15, 1943, and th erea fter on March 15 and September 15 in each year
u n til they nature on September 15* 1947. They w ill not be subject to c a ll for
redemption p rior to maturity# They w ill be issu ed only in bearer form with
in te r e st coupons attached, in denoainations o f $500, $1,000, $5, 000, $10, 000,
$100,000 and $1 ,000,000.
Pursuant to the provisions of the Public Debt Act of 1941, in te re st upon
the notes now offered sh a ll not have any exception, as such, under Federal Tax
Acts now or hereafter enacted. The f u l l pro visions rela tin g to ta x a b ility are
set forth in the o ffic ia l circu lar released today.
Subscriptions w ill be received a t the Federal Reserve Banka and Branches,
and a t the Treasury Department, Washington. Banking in stitu tio n s generally
m y submit subscriptions fo r account o f custom ers, but only the Federal Re
serve Banks and th e Treasury Department are authorised to a ct as o f f ic ia l
agen cies. Subscriptions fro® banks and tr u st companies fo r th e ir own account
w ill be received without d ep o sit, but subscriptions fro® a l l others met be
accompanied by payment of 2 percent o f the amount o f notes applied fo r .
Subject to the usual reserv a tio n s, subscriptions fo r amounts up to and
including $100,000 w ill be a llo tte d in f u l l , and subscriptions for amounts
over $100,000 w ill be a llo tte d on an equal percentage b a s is , to be p u b licly
announced. Payment fo r any notes a llo tte d aust be made or completed on or
before July 12, 1943* or on la te r allotm ent.
The te x t o f th e o f f ic ia l circu la r follow s*
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING* NEWSPAPERS,
Sunday, June 27, 1 9 4 3 , ____
6 -2 5 -4 $ ;
P re s s S e rv ic e
^°* 37-24
*
S e c re ta ry o f th e T re asu ry M orgenthau to d a y announced a r e g u la r
T re a su ry o f f e r in g d e sig n e d to r a i s e a d d i tio n a l funds in advance o f
th e T h ird War Loan D riv e, which I s sch ed u led to s t a r t in Septem ber.
The s e c u r i t i e s b e in g o f f e r e d a re 1—1 /2 p e rc e n t T re a su ry N otes o f
S e r ie s A-19^7,
They a re o f f e r e d , th ro u g h th e F e d e ra l R eserve
Banks, f o r c a sh s u b s c r ip tio n a t p a r and a c c ru e d i n t e r e s t , in th e
amount of $ 2 ,5 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts ,
The books w i l l be
opened on Monday m orning, June 2&, f o r th e r e c e i p t o f s u b s c r ip
tio n s ,
T here w i l l be no r e s t r i c t i o n s as to th e b a s is f o r su b
s c r ib in g f o r t h i s i s s u e .
The n o te s w i l l be d a te d J u ly 12, 1943, ®-dd w i l l b e a r I n t e r e s t
from t h a t d a te a t th e r a t e of 1 - 1/2 p e r c e n t p e r annum, p a y a b le on _
a sem iannual b a s is on Septem ber 15, 19^3* an<^ t h e r e a f t e r on March l p
and Septem ber 15 I n each y e a r u n t i l th e y m ature on Septem ber i p ,
1947. They w i l l n o t be s u b je c t to c a l l f o r red em p tio n p r i o r to
m a tu r ity . They w i l l be is s u e d o n ly in b e a r e r form w i t h i n t e r ;e s t
coupons a t ta c h e d , in d en o m in atio n s of $500, $1 , 000, $5 , 000, $10,0 ,
$100,000 and $1 , 000, 000.
P u rs u a n t to th e p r o v is io n s of th e P u b lic Debt Act of 1941,
i n t e r e s t upon th e n o te s now o f f e r e d s h a l l n o t have any ex em p tio n ,
as su c h , u n d e r F e d e ra l Tax A cts now o r h e r e a f t e r e n a c te d , T hs fu
p r o v is io n s r e l a t i n g to t a x a b i l i t y a re s e t f o r t h in th e o f f i c i a l c l
SUtlar r e l e a s e d to d a y ,
S u b s c r ip tio n s w i l l be r e c e iv e d a t th e F e d e ra l R eserve B anks
and B ra n c h e s, and a t th e T re a su ry D epartm ent, W ashington, B anking
i n s t i t u t i o n s g e n e r a lly may subm it s u b s c r ip tio n s f o r acco u n t o r c u s
to m ers, b u t o n ly th e F e d e ra l R eserve Banks and th e T re a su ry D e p a rt
ment a re a u th o r iz e d to a c t as o f f i c i a l a g e n c ie s . S u b s c r ip tio n s
from banks and t r u s t com panies f o r t h e i r own acco u n t w ill be r e
c e iv e d w ith o u t d e p o s it, b u t s u b s c r ip tio n s from a l l o th e r s must be
accom panied by payment o f 2 p e rc e n t o f th e amount o f n o te s a p p lie d
fo r.
S u b je c t to th e u s u a l r e s e r v a t i o n s , s u b s c r ip tio n s f o r amounts
up to and in c lu d in g $100,000 w ill be a l l o t t e d in f u l l , and s u b s c r ip
tio n s f o r amounts o v er $100,000 w i l l be a l l o t t e d on an eq u al p e r
ce n ta g e b a s is , to be p u b lic ly announced* Payment f o r any n o te s
a l l o t t e d must be made o r com pleted on o r b e fo re J u ly 12, 19*13, o r
on l a t e r a llo tm e n t*
The t e x t o f th e o f f i c i a l c i r c u l a r fo llo w s 1
UNITED STATES OF AMERICA
1 - 1 /2 PERCENT TREASURY NOTES OF SERIES A**1947
D ated and b e a r in g i n t e r e s t from J u l y 12 , 1943
Due S eptem ber 15, 1947
I n t e r e s t p a y a b le M arch 15 and S eptem ber 15
1943
D epartm ent C ir c u la r No; 716
TREASURY DEPARTMENT
O f f ic e o f th e S e c r e t a r y
"W ashington, Ju n e 28, 1943*
F i s c a l S e r v ic e
Bureau o f th e P u b lic D ebt
I.
OFFERING OF NOTES
1. The S e c r e t a r y o f th e T r e a s u ry , p u r s u a n t to th e a u t h o r i t y o f th e Second
L ib e r ty Bond A c t, a s amended, i n v i t e s s u b s c r i p t i o n s , a t p a r and a c c ru e d i n t e r e s t ,
from th e p e o p le o f th e U n ite d S t a t e s f o r n o te s o f th e U n ite d S t a t e s , d e s ig n a te d
p e r c e n t T re a s u ry N o tes o f S e r i e s A—1947. The amount o f tine o f f e r i n g i s
$ 2 , 500 , 000 , 000 , o r th e re a b o u ts *
II.
DESCRIPTION OF NOTES
1* The n o te s w i l l be d a te d J u l y 12, 1943, and w i l l b e a r i n t e r e s t from t h a t
d a te a t th e r a t e o f 1 —1 /2 p e r c e n t p e r annum, p a y a b le on a se m ia n n u a l b a s i s on
Septem ber 1 5 , 1943, and t h e r e a f t e r on M arch 15 and S eptem ber 15 i n eac h y e a r
u n t i l th e p r i n c i p a l am ount becomes p ay ab le# They w i l l m a tu re S eptem ber 15, 1 9 4 7 ,
and w a ll n o t be s u b j e c t to c a l l f o r re d e m p tio n p r i o r to m a tu r ity *
2# The income d e r iv e d fro m th e n o te s s h a l l be s u b j e c t t o a l l F e d e r a l t a x e s ,
now o r h e r e a f t e r im posed# The n o te s s h a l l be s u b j e c t to e s t a t e , i n h e r i t a n c e ,
g i f t o r o th e r e x c is e ta 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 exem pt from
a l l t a x a t i o n now o r h e r e a f t e r im posed on th 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 th e p o s s e s s io n s o f th e U n ite d S t a t e s , o r by an y l o c a l ta x
in g a u th o r ity #
3* The n o te s w i l l be a c c e p te d a t p a r d u rin g su ch tim e and u n d e r such r u l e s
and r e g u l a t i o n s as s h a l l be p r e s c r i b e d o r ap p ro v ed by th e S e c r e t a r y o f th e
T reasu ry in payment o f incom e and p r o f i t s ta x e s p a y a b le a t th e m a tu r it y o f th e
notes#
4*
The n o t e s w i l l be a c c e p ta b l e to s e c u r e d e p o s it s o f p u b l i c moneys#
5# B e a re r n o te s w ith i n t e r e s t coupons a t ta c h e d w i l l be is s u e d i n denom ina
tio n s o f $500, $ 1 ,0 0 0 , $ 5 ,0 0 0 ,$ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 * The n o te s w i l l
not be is s u e d in r e g i s t e r e d form#
6 # The n o te s w i l l be s u b j e c t to th e g e n e r a l r e g u l a t i o n s o f th e T re a su ry
D epartm ent, now o r h e r e a f t e r p r e s c r i b e d , g o v e rn in g U n ite d S t a t e s n o te s#
III.
SUBSCRIPTION AND ALLOTMENT
1. S u b s c r ip tio n s w i l l be r e c e i v e d a t th e F e d e r a l R eserv e Banks and B ran ch es
and a t th e T re a s u ry D e p artm en t, W ashington* -S u b sc rib e rs' m ust a g re e n o t to s e l l
or o th e rw is e d is p o s e o f t h e i r s u b s c r i p t i o n s , o f i f th e s e c u r i t i e s w hich fiiay be
amount of n o tes a S l L d ' f o r r
^ g g « K *
%
acoomPanied *
^
o f 2 percent o f the
sxs.;:sysrsffix&x'tzssrsdr
s
x
z
?
x
&
j &
^
ms &
s * ~
a X lo ttd d 1 i n Sf i i l ? bS° r rfP t l KnS f ° r 3m0UIlts up to 311(1 in c lu d in g $ 100,000 w i f i be
o f T A a l p ^ o ’e n ^ L T s l ^ T * 1 , ? ? * * °VW
^
^ a llo t t e d
be s e n t o u t p ro m p tly upon a l l o t m e n t .
7 j o u n c e d . A llo tm e n t n o t i c e s w i l l
IV ,
m
ust bcasp
e mad«evT'or
ever?
f°ron
n°n6
S allotted
hereun
°f Dfelor@dW 12, 1943, or
later
allotment.
Inder
7 .
pS e c? r ect a^r v oo ff +
sV10 n-L,
.
.
C i S i ^ p o m L T ^ u S
a l l o t t e d to i t f o r
^
be q u a l i f i e d i n m p l ! ^
? ¥
R eserve Bank o f i t s d i s t r i c t ^
V,
is e d m d r e o u e ^ H
S
L
n
otes*
PAYMENT
'Ifo ■•t
0
tr
**
* e
s n a i l , upon d e c l a T
r a t iloi cn a made
b v th
S ; S r t , t £ “ “ • fl “ **» ? “ ? =***•■•
p6rm^tied to ma* Q Payment b y c r e d i t f o r n o te s
c u sto m ers up to an y amount f o r w hich i t s h a l l
®
^posits,vhen 30 n o t i
GENERAL PROVISIONS
? e ® tB ° f th e U n ite d S t a t e s > f’e d e r a l K eserve Banks a r e a u t h o r -
sT&srs rcr -
ro L r t S y T “ >
9
7
7
luSue int0rimreceipts pending delivery of the definitive
HENRY MORGENTHAU, J R .,
S e c r e t a r y o f t h e T reasu ry *
*m?
/ M>Xfi:
I■
■;
living to
disturb m too
ths h itte r with tbs
V \ *X X
a
42 m
loir# Is of
Th*t doss not
lost of us m m brought up to t&ks
of us m i l s # th a t for
* 41 •
can we eonjars good# oat of thin s ir by fa ilin g to tax
adequately, thus leaving consumers with tens of billions
for which they have no honest use. Inadequate taxation
eoesn’t offer eitiseas the privilege of consuming more
goods than are in existence! i t merely gives them the
privilege of Joining in a mac soreable for the goods that
do exist. By trying to wish the inflation problem out of
existence, m have already wished ourselves Into a 25
percent inflation since the beginning of 1341.
If m aia to hold the line Iron now on, ona of the
b&sie parts of our program mist be a tax policy which
looks facts in ths eye and faces consequences. We nay
not like those eonse^quenoes. They mean, for
of us,
a descent free the ivory towers in which we have been
liv in g to
-m/%r
Adequate taxes would not Increase wartime hardships
There Is a notion in many quarters th a t levying
adequate taxes would somehow magnify the hardships which
war imposes on the American people.
What li e s behind
th is notion is sheer wishful thinking} "Wishes lik e castles
In the a i r , are inexpensive and not taxable."
Of course,
i t would be nice i f we could have a l l our war supplies pro
duced by magic and i f we oould use a ll our national resources
to produce the kind of consumption goods people wish they
had.
But we don’t liv e in th a t kind of a dream world.
Four minus two s t i l l equals two.
The war production we
need must cut into c iv ilia n supplies,
A complete failure
to levy additional taxes w ill not abolish th at hard fact,
fe cannot wish shortages out of existence.
Kelther
can we
sitJp'
- 89 -
^
(jV \
gljf# only ft f i r s t approxl mati on to the amount on which
we can f a ir l y ask him to pay tax es.
Subtracting our present
exemptions and deductions gives a second approximation which
has proved reasonably sa tisfa c to ry in a period of low tax
ra te s ,
As ra te s r is e , we should look fo r ways of protecting
taxpayers whose working and liv in g conditions subject then
to special burdens.
There is also a strong case for giving
r e lie f in consideration of non-inflationary uses of funds.
This was the aim of the "spendings tax" proposal brought
forward by the Treasury la s t yeari
the spendings tax
would be e sse n tia lly a supplementary income tax under which
r e lie f would be granted fo r amounts of income put to such
uses as war bond purchases, l i f e insurance or repayment
of debts*
should combine a measure of tax r e lie f with
increase revenue*
to
I f possible, someysort of adjustment
should be made for taxpayers who e£e exposed to unusually
/
/
high costs of liv in g , e ith e r because they liv e in U rge
X.
X .
/
/
c itie s or because they liv e in congested warwork centers.
\
/
Extra expenses incurred /because of housewives going to
/
/
/
work deserve recognition.
\
\
\
There is also a strong case
fo r giving r e lie f in consideration\pf non-inflationary
/
uses of funds*
,•
"—Z . '
\
X ,
th is was the aim of the ^spendings tax®
proposal brought forward by th e Treasury la s t years
;
the
spendings tax would be e sse n tia lly a supplementary income
tax under which r e lie f would be granted fo r amounts of
income put to such uses as war bond purchases, li f e in*
sur&nce, or repayment of debts*
♦
88
out of willcli c itiz e n s spent
M y ,*
j) b illio n .
$88 b illio n and saved $2?
In 1944, incope before taxes w ill clearly exceed
\r
rV
#
|150 b illio n , and the amount consumers can spend without
\j> pushing up prices w ill be very l i t t l e i f a t a l l above 1942
expenditures.
Could citize n s make s h if t somehow with an
jfV &
income a fte r taxes of $10 b illio n higher than in 1942? I t
i s p re tty obvious tjaat they could. Well, i f so, they could
bear a t le a s t $80 b illio n of personal taxes.
There is every reason to believe th a t adequate taxes
are p ra c tic a l — both adm inistratively and in terms of the
necessary adjustments in taxpayers* budgets.
Rates and
exemptions must be adjusted to make taxes adequate. But
ju s t as with corporation taxes, there is much to be said
fo r combining action to increase revenue w ith a measure of
tax r e l i e f .
The taxpayer's earnings and other income
give
33
oat of which clU xena apeat
b illio n .
382 b illio n and sawed 12?
In 1944, Inoooe befort taxes w ill o lsa rly exceed
/
$160 b illio n , and the aaount eonausari oan spend without
/
ftesSiag 8f p rices w ill ba vary l i i t l e I f a t a l l above 1342
expenditures.
Could b itia e n s bake a h lft aoaahow with an
incaao w»sW«*»«***
a f te r niitaxes
of $10 bVillio n higher than
ijiiiimwniwiwww#
/V
In 1942?
is pretty obirtouc th a t they aotp4« ta il# i f
/
\
/
\
hasp a t la aat $30 b illio n of personal taxes.
It
they could
fhapa la every reason to baliava th a t adequate taxaa
ara ppaotlcal — both adm inistratively and In taras of
tha necaaeary adjustaents in taxpayers’ budgets.
But thara
la no doubt th a t i f wa aloply raissd r a ts s and lowarad
exemptions we ahould ba unfair to a considerable maibep
of taxpayers.
Ju st as with corporation laeossa taxaa, wa
ahould
* 37
consumers * spending 'power > and w ill take a fo ra for which
the ordinary taxpayer can budget efficien tly *
fo secure an adequate Increase in revenue , the nation
needs an increase in personal income tax ra te s ** probably
also a decrease in exemptions ~~ to take e ffe c t at the
beginning of 1944* Some skeptics question whether tax*
payers can bear an Increase in personal income tax payments
to the Federal. Government from the $4 b illio n level of the
calendar year 1942 to the enormously larg er suss which are
necessary to hold the a s ti^ in fla tio n lin e in the calendar
year 1944*
This way of putting things, however, ignores
the ris e in income*
A f a ir e r way to put the question
would be more lik e th is t
In 1942, personal income after
payment of a l l personal taxes amounted to $109 b illio n ,
out of
m 36
General faxes on personal incomes
The revenue sources I have mentioned so far plainly
add up to only a fraction of the nation's requirements.
This means that the greater part of the tax revenue we
need must he drawn from personal incomes — a fact which
should not surprise us since the root cause of the inflation
problem is that personal Incomes are over-expanded relative
to consumption goods supplies♦
Until recently, wartime use of personal income taxes
was handicapped by the one-year lag between receipt of
taxable income and liab ility to pay the tax# The Current
Tax Payment Act has cured this defect# It insures that
any Increase in tax liab ility {if properly reflected in
the withholding rates) will take effect immediately on
consumers1
Payroll Taxes
Th@ case fo r Social Security taxes on payrolls is
somewhat sim ilar to that for e state and g if t taxes.
The
character and scale of Social Security changes must he
decided on Social Seourity grounds.
■ 4V r;;
fij
Xp
">
Revenue oonsidera■
tions should not he allowed to influence anything but the
A-
timing of the changes; though i f those changes aa-arbyg§t***5
o -X i product-bring in extra revenue I t w ill he decidedly welcome.
I w
M u F
4
I
■
-A
Taxes on payrolls outside the Social Security frame-
^ ^ w o rk — th at i s , without any corresponding increase in
W J
'
m m
-j^^^laim s to immediate or deferred benefit* — would he both
$1 ! .
inequitable and a d ire c t incentive to in flatio n ary wage
a ir
‘
t
demands, and do not deserve serious consideration.
4
• 34 *
toward making a l l desirable increases now r a tte r than
l& te r t
A special problem in th is f ie ld has been created by
the recent Current fax Payment Act.
One of the main
arguments in favor of forgiving three-fourths of the 1942
tax l i a b i l i t y was th a t much of the re su ltin g increases in
the e sta te s of high-bracket taxpayers would be picked up
eventually by e sta te taxes*
an optim istic assumption.
tinder existing law, th is is
Various special devices for
Bakin" i t come true have been suggested, and deserve
c a rtfu l attidy.
But la the m l m m y flu! th at the most
appropriate adjustment is a general increase in estate
tax rates#
faxes QB estates and g ifts
Thsre are serious drawbacks to tre a tin g e state and
/
g if t taxes as emergency measures*
Changes In rate® do
not bring in extra revenue Tory quickly#
a »
Furthermore,
fl h eirs are not responsible fo r the date of his
decease ♦** at le a s t outside the pages of detective fiction#
I f high emergency ra te s are to be repealed at the end of
h o s t i l i t i e s , the re s u lt is a powerful discrim ination against
the h eirs of people who happen to die during the war* la*
creases in the rates of estate and g if t taxes should be
studied from the standpoint of permanent desirability#
The
wartime peak in revenue needs should not be used to justify
deciding to levy such increases; though i t doe® point
toward
corporate p r o f its , p a rtic u la rly i f r e lie f provisions
can be fu rth e r improved*
But there is no use hoping to
ra ise enough from th is source to make a very largo dent
in to ta l revenue requirements*
Bet corporate p ro fits
a fte r taxes were less than $T 1/2 b illio n in 1942, and
w ill probably not be much greater in 1943#
The to ta l
amount of these p ro fits is only a fra c tio n of the amount
of revenue we need? and obviously capturing a fractio n
of th a t fractio n cannot dispose of the whole problem*
- 31 *
have ma|f the actual average base period net income an
inadequate standard of normal earnings#
fhe application
||$j
of Section 722 to snefe class of e a s ts f however» must not
A
be inconsistent with the p rin c ip le s, conditions, and limita
tions underlying the specific statu to ry instance In which
r e lie f would be proper#
I t cannot be too much emphasised th a t Section 722 is
for the purpose of working equity and of m itigating extreme
casts of hardship*
I f i t s provisions are abused — as
were the cognate provisions of the ISIS Act*—* drastic
modifications of the sta tu te w ill undoubtedly re s u lt, and
our a b ility to temper the ap p licatio n of excess-profits
taxes for 1943 and la te r years w ill be Impaired*
Seme fu rth er revenue can probably be obtained from
corporate
• so *
available information upon which a subjective determina
tio n of a taxpayer's normal earnings can be predicated.
In cases of th is so rt as w ell as in cases involving a
commencement or change in character of a business in which
the "two-year push-back" rule is used to determine a level
of normal earnings, base-period net incomes w ill be scaled
down somewhat to prevent taxpayers from receiving double
advantage for th e ir i n i t i a l period of low earnings — once
through a high constructive average base period net income
and a second time through carrying forward unused excessp ro fits cred its from the early years of the war.
Besides these four classes of cases, Section 722 con
templates r e lie f for cases where factors not specifically
spelled out in Section 722 may reasonably be considered to
have made
# if
level of
**
operations which would have teen attained
had the business been sooner cossaanesd or chafed will he
used as the basis for reconstruction for the entire base
period*
(if Business tetabllahed since Base .Ferlgd. Cases
where the taxpayer has no base period earnings because
the business was started after" December S I, 12S-« In
such cases there la no experience of the taxpayer**
• . : ...
sto re d terming povtr under
‘
‘.
I
conditions* It it
likely ttiaf support fur a taipsytr1®
iw & p
lat# period mot Income mg Sskft to be found In the base*
period experience of comparable business**. It Is
net intended by this to resurrect the "eosparatlve*
test of the ISIS Act, but merely to insure the use of all
available
28 «•
establishm ent, or a fte r a sharp change In character of
i t s business which occurred immediately p rio r to or during
the base period.
A change in the capacity fo r production
or type of operations actu ally effected a fte r December 31,
1939, as a r e s u lt of a commitment to th is course of action
incurred p rio r to January 1, 1940, is deemed to be a change
occurring os December 31 $ 1939*
In th is type of case, r e lie f takes the form of average
earnings reconstructed for the en tire base period upon the
• basis of the lev el of normal operations actu ally realized
during the base period.
I f the taxpayer did not reach its
lev el of normal operations tiffing the base period, it will
be considered to have commenced business or to have changed
the character of i t s business two years e a r lie r , and the
level of
* 27 m
the base periodf but i t would have to be shown th a t this
period was a period of average normal earnings io r the
taxpayer end bore the same re la tio n to the p ro fit cycles
of the taxpayer m& the taxpayer1® industry as 1936*39 did
to the p ro fit oyele of business as a whole* taxpayers and
th e ir representatives should bear in mind th a t th e ir claim
to depression in 1936*39 must be based on evidence visible
#
I
to the naked eye# and on coaaon-senee analysis^ if i t taxes
the m agnification of higher mathematics to show the dif
ference! i t cannot be expected to impress the Treasury.
(3)
Base Period l-rn ln g s F ail to iteuroseat MatHEftfl
Earning Power.
Cases where base period earnings are not a f a i r standard
of normal earnings because during the base period the
taxpayer was developing normal earning power a fte r its
establishment,
iect to cycles or sporadic profits
(2 )
Cases where the 1936-39 period was one of depressed earnings
in the taxpayer’s industry, hut no special abnormal event
is the apparent cause.
These w ill occur generally i f the
periods of moderate prosperity of an industry do not co
incide with periods of moderatw prosperi
general.
of business in
Taxpayers in industries connected with building
construction, for example, majMse able to show th a t their
industries were depressed fo r the period from 1936 to 1989
because building is subject to longer swings than business
in general, and never reached prosperity lev els in the
1936-39 base period,^ The constructive average base period
net Income in such eases might be b u ilt up by adopting
some period other than the period from 1936 to 1939 as
the base
(1)
kbagemllT#nt,
Cases *here some
power down during
event hae pulled the taxpayer’ ■
L# Besides the physical events recog
nised under the 1941 Act (fires* e to*) * which had the
normal activity* the
of in terru p tin g or
1942 Act r
economic dislocations causing
in the case of a taxpayer or an in
dustry of which i t was a member*
Generally the constructive
average base period net income is to be b u ilt up by
for the
the 1936-39 record and adjusting earnings
years affected by the abnormalities*
normal earnings, the taxpayer is
Since the goal is
also to
downward adjustments for any abnormally favorable events
during the period, or to show th a t no such events occurred*
four typos of situ a tio n s aro recognised in which th is
su b stitu tio n may bo authorisedt
(1) Abnormal Event
/
«* 3 3 **
income in place of the actual excess-profit# credit, in
oases where nee of the actual excess-profits credit
would result in an excess-profits tax which is "excessive
and discriminatory".
The computation of income subject to excess-profits
tax Involves a comparison between an excess-profits credit
representing a standard of normal earnings a»f current
income. If the standard as
does not
K
represent a norm because the actual average base period
earnings are not normal or because the excess-profits
credit based on invested capital (in the case of taxpayers
not entitled to use the average earnings base) does not
reflect a normal return for the business, a fair comparison
22
-
I t 1# In th is perspective th a t one must in te rp re t
the "re lief* provisions w ritten into the corporation
excess-profits law la s t year by Section 722.
not aimed to reduce the tax revenue.
"Relief" is
On the contrary, i t
is aimed to increase the to ta l tax levy which a l l corporation!
can fa irly be asked to bear by remedying the in ju stices which
would arise i f very high ra te s were applied mechanically.
The objective is to increase the s e le c tiv ity of the
impact of corporate tax atio n .
By doing so we escape the
necessity of determining the corporate tax load of a l l
corporations, fortunats and unfortunate, on the basis of
the unfortunate corporation# alone.
The procedure is to
permit corporate taxpayers to su b stitu ts an excess-profits
c re d it beeed upon a constructive average base period net
income
-
21 -
excises rs a lly d ra s tic might very w ell bring in two billion.
But th* bulk of th* war revenue problem mutt bt solved
entirely outside the sales and excise tax fields.
Taxation of Corporate Profits
/ y
*
The Congress and the Administration have been a) one
in wishing to prevent any corporation fro* reaping excessive
war p r o f its .
On the whole we have been more successful here
than in other fie ld s of taxation.
Out of a to t a l ris e of
about $14 b illio n in corporation income before taxes from
1939 to 1942, over 75 percent i s accounted for by increased
tax l i a b il ity and le ss than 25 percent by increased corporate
net income.
For 1942 corporate net ineoae aggregated $7.4
b illio n j and tax l i a b i l i t i e s were much g reater than that
amount.
I t is
a big sales tax job Is loaded on top of them.
(3) While the f i r s t drawback could be m itigated by
exempting some commodities, to do so would make
the second problem y e t more serio u s.
For these reasons the Treasury believes th a t a general
Federal sales tax is not worth while — s tr ic tly as a natter
of cold-blooded p ra c tic a l calcu latio n .
There is a good deal of room for increasing the kind
of sales taxation we have already, th a t i s , excises.
The
co llectio n machinery is already in operation and the public
is undoubtedly prepared to accept fu rth er taxes on "luxurlei
and to accept wartime d efin itio n s of "luxuries" — without
expecting to be compensated by Increases in money incomes.
Revenue p o s s ib ilitie s here are considerable} making our
excises
- 19 pockets through wage and farm pries adjustments.
(2) A r e t a i l aalea tax is a big job adm inistratively.
Even the 2 percent and S percent ra te s customary
in State aalea taxes have necessitated a good deal
of auditing to make aura aalea were reported, and
a good deal of litig a tio n to s e ttle what types of
sales were covered.
At a 10 percent r a te , these
problems would be much more intense.
At the present time, the Bureau of Internal
Revenue has ju s t begun to d ig e st the task of
handling the withholding machinery under the
income ta x , and the job of handling quarterly
returns is s t i l l ahead.
Both of these jobs have
to bs w ell done; and thay w ill be imperilsd i f
a big
bears hardest on low-income consul* re with large feral lie s.
Concern with the fate of low-income consumers is not a
thing for which 1 fe e l th a t 1 should apologise.
But leering
th is argument from equity on one sid e , there are sereral
ad d itio n al arguswnte of coldly p ra c tic a l character which
seem to me to make a conclusive case against general sales
taxes?
(1) With the sola exception of payroll taxes
dissociated from b e n e fits, sales taxes are
more lik e ly than any other taxes to produce
an ir r e s is tib le drive for higher wages and
farm p ric e s.
Nothing i s gained by taking up
a few b illio n s of spending power through sales
taxes i f we have to put i t back into people's
pocketft
- 17 g» fka idea th a t a 2 percent sales
on
tax would save the nation seems to have evaporated a t lasts
s t i l l hope th a t a 10 percent tax would do
but
A
\
to have <^up
cake and e a t i t too — to manage the g!
which the war c a lls for without any re a l inconvenience to
rrnadv*
w
The arithm etic of the situ a tio n ■• shows th at sales
solve our whole revenue program.
Th*
gross y ield of a r e t a i l sales ta x ip r 10 percent would not
.3
y
^
muck exceed $5 b illio n ; a n d / o r several reasons gf the
actu al net gain to war finane* would be much smaller th
th a t figure
£3, . w S U ft|^p o v *
The Treasury *s opposition to
iv s been
on the fa c t th a t such taxation
bears hardest
yi
Given the c o n stitu tio n a l b a rrie r to Federal taxes on
property, we have a rath e r lim ited reage of revenue sources.
We can tax:
A. Sales of commodities
B. Corporation p ro fits
C. E states and g if ts
D. personal incomes (taking th# term broadly to
include possible taxes on M
gr®“
payrolls,
e t c . ) or spendings from those incomes.
Gome combination of these taxes must be made to do the job.
ffutt-i oft sales of comodi tie s
fo read som press ornaments, one might suppose that the
whole problem of war finance could be solved by a moderate
-
IS -
the fat of excess spending power without cutting Into the
lean of Justifiable expenditures and necessary savings*
Unfortunately, nobody knows how to do such a job perfectly*
fo avoid leaving too much fat, we must nick the lean here
and to re ; but to avoid cutting dangerously into t o lean,
we must leave rather more fa t than we should like to* Our
actual tax goals are set a good deal below those of a_^
perfectionist standard; end even so^we must design our
taxes carefully to avoid doing serious damage. An we
increase the weight of the levy we must he more careful to
tailor It to individual situations. I t is tolerable to bs
unfair on a small scale; but the heavier taxes grow, the
harder we must try not to magnify t o unfairness along with
the taxes*
fax P ossibilities
A
M.]
14
me $20 billion of present personal taxes *111 absorb,
A rigorous staiidard of sa tl“*infla'ti.Gnary war finance,
aiaed at the mat stringent control of wartime and postwar
inflation consistent with effective prosecution of the war,
would require absorbing in taxes the maximum amount possibl*
without deflation, leaving ci^isene with enough to buy the
|85 billion worth of consumption goods plus enough to provide
liberally through saving for the security of their families »-
///
say $20 billion, ~
j
Incidentally, i t would also aim to absori
a ll the permitted savings into war bonds, and to tie them
down peewaMiaM^'So that thewnsBf.no d*ag®r
i l l ’tiai*
burst of inflationary speauing at the end of the ^a?i
Setting tax goals so high, howejer, would call for a
very carefully designed tax system, which would trim off all
the fat
years when we are working o ff the wartime backlog of
u n satisfied M i n t and business demand, the Government
should have a surplus rath er than a d e f ic it, i f postwar
in fla tio n is to be avoided#
But in the face of heavy
in te re s t charges, a surplus means e ith e r continuing wartime
tax rate s for years or starving urgent expenditures for
public works, public health, and education#
The way to
keep th is problem w ithin manageable lim its is to a c t now
to check the ris e of debt#
II.
When c itls e n s have money incomes of $150 b illio n and
only about $35 b illio n worth of goods to buy, i t is obvious
th at they have an enormous taxable capacity — fa r more than
the $80 billion
«* 1 2 m
and Ignores p u t cash aoem ulations — Is clearly too
high fo r safety*
alee i s In te re s t charges
from a figure of $1.8 billion in the fiscal year
1941-42, interest on the public debt is expected to rise
to $S billion la the year 1943-44. By the end of the yewin June, 1944, interest will be running at a rate of $4
billion per annum, assuming the present low average interest
rate of 2 peroent s t i l l applies. Every year of war, on the
present financial basis, will ad a (« r* * « lt^ -l/2 to $2
billion.
J jJ
'
'
—------
After the war, heavy interest charges will be a great
handicap in re-shfpjbtg the Federal budget. Baring the
years ubia
m
m
and people who are frank about th is l*aua ara in constant
danger of being accused of "lack of fa ith in human nature*.
But nobody ever had a store charitable view of human nature
the author of the Lord’s Prayer, and one of the central
p e titio n a of th a t prayer i s "lead us not into temptation,
but d eliv er ua from e v il" .
In cid en tally , the advocates of
fa ith in human nature should beware how they assume that
American c itiz e n s lack the patriotism and good sense to tax
themselves adequately In time of war.
For the crating year, Americans w ill have $15 of spending
power, a f te r taxes are taken o ut, fo r every $10 worth of
goods available.
In B ritain the ra tio Is only about $12
.<97
for $10 worth of goods.
]
The prospective American ratio —
which allows only for spending power from current income
and Ignores
•
10 *
fg a u st n a w b i r th a t temptations to go into the
black market aw on the increase.
U ntil vary recently
supplies have bean good enough to allow consumers to save
more and consume more too.
Aa i t gats to be a question of
consuming la s s , mope people w ill ba inclined to divert
savings to black market spending.
At the same time excess
spending power from currant incase is on the increasej and
besides current re c e ip ts, consumers have on hand a rapidly
growing cash accumulation from previous savings,
th is
situ a tio n contains not only a th rea t of wartime inflation,
but also a .th re a t of postwar in fla tio n — and, on the
record of past w ars, postwar in fla tio n s are the more
dangerous.
m need more taxes to reduce these temptations for
in flatio n ary spending.
This is plain and unpleasant talk*
and people
« I
•
Of th is amount, about $20 b illio n w ill ba absorbed by tha
personal taxaa
now in fo res.
To buy up a l l available
supplies of consumer goods and services a t ce ilin g prices
c a lls fo r about $85 b illio n , leaving excess spending pass*
^
of about $45 b illio n .
I f consumers use any p a rt of the
6XC@s$ to push t h t i f 8ponding above $Sb b illio n # llvl& |
costs w ill bo fu rth er inflated#
Already wo have bod a good deal of trouble with the
enforcement of rationing and price controls
iX
On the 0?k'$
w
j“
own authority# we are told th a t r e t a i l food priceji aver a*4
I.
XJ
5 percent above ceilings*
Gasoline and meat show a
I1 H H
p e rs is te n t tendency to leak out of regular channels and
flow to black markets.
I l l i c i t markets in ratio n coupons
are developing here and there.
We must
IBlfe
8
In using foreign tax experience as a standai
iig
must b* remembered th a t every other to o l of in fla tio n
control b ite s deeper abroad than here.
The three countries
ju st named a l l have longer established price-control systems.
Despite th e ir higher tax es, a l l three have been a t least
as successful as tie have in persuading c ltls e n s to buy
bonds u n til i t h u rts.
Both B ritain and Germany have very
much broader and stronger rationing controls than we.
In
using taxes to support these other co n tro ls, ws should
plainly allow for the fa c t th a t our non-tax controls will
prove more leaky.
s
of excess spending power
Present prospects are th a t c itis e n s w ill receive
gK#=.
igg
incomes of about $150 b illio n In the f is c a l year 1943-44.
Of this
__________
I s a B
/ m-
loan accounts, the funds come into the pooka tbooks and
checkbooks of individual o itlsc n s and of business firms.
Expansion of bank investments Increased the to ta l of coin,
paper money and checking deposits held by the public by
Jj'
28 percent during the year 1942.,,
I t i s obvious ttftt ta
increase of th is magnitude In the amount of money people
f
have immediately available fo r spending means also an
increase in the danger of a spending spree.
m
J
B ritish , Canadian and German standards of war finance
J
1ST
y
fo r taxes to cover about h a lf of government expenditures.
'3*
have been covering about one-third, and about the asm*
lev el of coverage is in prospect, under ex istin g law*, for
the f is c a l year 1943-44
In using
* s •
Treasury’s provisional financing plans c a ll for a somewhat
m a ile r ris e during 1943 and again during 1944.
I f bank
financing is to be reduced to safe le v e ls, however, we shall
need a l l the help we can get both from taxes and from
voluntary purchases of bonds by priyate c itis e n s .
War [financing through-banks is recognised everywhere
w
\J
h
as dangerous, since i t leads d ire c tly to an increase in the
cash a sse ts held by the public.
When a bank buys bonds, it
cossaonly sets up & "war loan account” payable to the United
S tates Treasury.
This process increases the cash assets of
the Treasury} but obviously, the bank has no rig h t to dock
any customer’s account because the bank has bought bonds,
so th a t there is no corresponding decrease in the public’s
cash a s s e ts .
As the Treasury’s spending drains the war
loan accounts,
i» R o
bankas
(2) Relative to our expenditures, our taxes are far
below the standards of B ritain and Canada;
(S) Pressure in the rationing and price control fields
indicates th a t excess spending power needs to be
reduced; and
(4) The ris e in in te re s t chargee on the public debt
points to great d if f ic u ltie s in arranging postwar
budgets*
few m&mvtriAJL
auak4n&» 4& » e »
Curing the calendar year 1942, the amount of federal
a/
se c u ritie s held by banks rose $23*1/2 billion#
The
Treasury*s
- 4 d e fic it creates aa overwhelming prlma facie case for taxes
to elim inate the d e f ic it.
Hot a l l the reasons given for
th is opinion w ill stand up without q u alificatio n under
close study} b u t, fo r a l l th a t, th is tra d itio n a l point of
view makes sense.
ju s tific a tio n .
A d e f ic it always c a lls for special
I t can be ju s tifie d in some conditions to
2 /
do one special job — to combat d efla tio n .
But everybody
knows th a t rig h t now in fla tio n , and not d e fla tio n , is our
d iffic u lty .
There ere severe! other simple standards by which i t
can be seen th a t u n filled needs for taxes ere enormous*
In p articu lars
(1) le are forced to borrow very heavily a t coimercial
banks;
** 3 —
the d eficit*
Actually we are covering Just about the
same proportion of government expenditures by texts as
m 414 in World War I — about a th ird .
That wasn't
enough than, as the 100 peroent in fla tio n of living costs
during and Just a f te r tbs war showed* t t is n ’t enough now*
I t Is fashionable to disouss th© tax issue in terns
of rath e r high-powered concepts like the 11inflationary
gap*,
fid s s o rt of analysis is necessary i f we in s is t on
the most precise possible answers to our questions.
But
the fundamental case for ad d itio n al taxes can be put in
much simpler fo ra.
To begin w ith, many c ltis e n s a s s e rt simply that we
need more taxes "to pay for the war" -
th a t a gigantic
d e fic it
-
2
-
eonsuaption §o as to release fo r war purposes *11 possible
manpower, m aterials, and equipment} and to keep the s i r
economy working smoothly, he has to accept war taxes.
I.
Sobs people doubt th at sore taxes are re a lly necessary
or d esirab le.
A fter a l l , such people argue, taxes are at
all-tim e record le v e ls, and the Government doesn't seen to
be having any d iffic u lty g ettin g money.
Why more taxes?
To begin w ith, m r i s n 't an exhibition run where the
only object is to run fa s te r than the previous record.
The enemy is breaking record# tooi
Job i s n 't merely
to do b e tte r than usual, but to do wall enough to win.
Certainly taxes are a t record high levels} but so isdS#
the d eficit.
IB B H I
§gip
i£ $
F .d a ra ra a r Associstion o f
,
ttew /Jjoirak#, €onneoilcut, N e w a r k •J . - ^unt 30$ 1943*/
T&TRK
FOR
VICTOR?
"Taxes" sad "Victory" may
h
« a t f i r s t glaace to be a
rath e r oddly mated p a ir of ideas.
Certainly the combination
lacks the glamqi? of canbinatione lik e "planes and viotory*
or "ships and victory*.
I t is more like "colder houses
victory" or "dlraouts and v icto ry ".
I t means deprivation
rath er than glory.
Unfortunato ly * war is like th a t fo r civilians*
We
c a n 't expect to enjoy the romantic t h r i l l s of rounding up
Ita lia n generals before breakfast — and we should remember
th a t we haven't personally paid the price of those thrills*
The c iv ilia n 's war job is more humdrum.
He has to f i t
himself into the most useful occupation he can find. He
has to work as hard as he can.
He has to hold down his
consumption
I
(a )
(b )
In tro d u c tio n
-
1.
R easons f o r th e C o n fe re n c e s
2.
O b je c tiv e s o f t h e C o n fe re n c e s
3.
Im p o rta n c e t o O ur Work
J . W. P o h le
The R e s p o n s i b i l i t y o f A l l P e rs o n s i n th e P u b lic S e r v ic e i n a
Democracy
Ward S te w a r t
1.
N a tu re o f th e P u b lic S e r v ic e i n th e U n ite d S t a t e s
2.
D if f e r e n c e s b etw ee n th e P u b lic S e r v ic e and P r i v a t e
Employment
3.
O b lig a tio n s A tta c h e d t o Employment i n th e P u b lic S e r v ic
4.
A p p lic a tio n o f D em o cra tic P r i n c i p l e s t o E veryday
A d m in is tr a tio n
TREASURY BEPAPTMSHT
Washington
J8B HPLPAS13* AYTPRWOOW USWSPAPSRS
Wednesday* Jnne 30, 1943
'
Press Service
No* S?-25
SCHWARZ’S OFFICE
(The following address by Randolph S. Paul , General Counsel
for the Treasury* before the Federal Bar Association of
Hew York, Hew Jersey* and Connecticut* at the Robert Treat
Hotel, Hewajrk, Hew Jersey, i s scheduled for delivery at
12 ofclock. l(oon. Eastern War Time* Wednesday, June 30, ,1943*
TREASURY DEPARTMENT
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS
Wednesday, June 30, 1943
Press Service
No. 37.25
(The following address by Randolph E. Paul, General Counsel
for the Treasury, before the Federal Bar Association of
New York, New Jersey, and Connecticut, at the Robert Treat
.Hotel, Newark, New Jersey, is scheduled for delivery at
12 o♦clock, Noon, Eastern War Time, Wednesday, June 30, 1943.)
TAXES FOR VICTORY
Taxes and “Victory” may seem
mated pair of ideas. Certainly the
binations like “planes and victory”
like “colder houses and victory” or
deprivation rather than glory*
at first glance to be a rather oddly
combination lacks the glamor of .comr
or “ships and victory”. It is more
“dimouts and victory". It means
Unfortunately, war is like that for civilians. We can’t expect to
enjoy the romantic thrills of rounding up Italian generals before break
fast — and we should remember that we haven’t personally paid the price
of those thrills. The civilian’s war job is more humdrum. He has to fit
himself into the most useful occupation he can find. He has to work as
vhard as he can. He has to hold down his consumption so as to release
for war purposes all possible manpower, materials, and equipment; and to
keep the war economy working smoothly, he has to accept war taxes.
I.
Some people doubt that more taxes are really necessary or desirable.
After all, such people argue, taxes are at all-time record levels, and the
Government doesn’t seem to be having any difficulty getting money. Why
more taxes?
.T0 begin with, war isn’t an exhibition run where the only object is
to run faster than the previous record. The enemy is breaking records
too: Our job isn’t merely to do better than usual, but to do well enough
to win. Certainly taxes are at record high levels; but so is the deficit,
Actually we are covering just about the same proportion of government ex
penditures by taxes as we did in World War I -- about a third. That wasn’t
enough then, as the 100 percent inflation of living costs during and just
after the war showed; it isn’t enough now.
2 -
I t i s f a s h io n a b le to d i s c u s s th e t a x is s u e i n te rm s o f
pow ered c o n c e p ts l i k e t h e " i n f l a t i o n a r y g a p " . T his s o r t o f
n e c e s s a r y i f we i n s i s t on th e m ost p r e c i s e p o s s i b l e an sw ers
But th e fu n d a m e n ta l c a s e f o r a d d i t i o n a l ta x e s can be p u t i n
form .
r a t h e r h ig h -
a n a ly s is i s 1
t o o u r q u e s tio n s *
much s im p le r
To b e g in w ith , many c i t i z e n s a s s e r t sim p ly t h a t we need more ta x e s
Mto p ay f o r t h e w ar" - - t h a t a g i g a n t i c d e f i c i t c r e a t e s an overw helm ing
p rim a f a c i e c a s e f o r t a x e s t o e l im i n a te t h e d e f i c i t . Not a l l th e re a s o n s
g iv e n f o r t h i s o p in io n w i l l s ta n d up w ith o u t q u a l i f i c a t i o n u n d e r c lo s e
s tu d y ; b u t , f o r a l l t h a t , t h i s t r a d i t i o n a l p o in t o f v iew makes sense*
A d e f i c i t alw ays c a l l s f o r s p e c i a l j u s t i f i c a t i o n ,
I t can be j u s t i f i e d i n
some c o n d itio n s to do one s p e c i a l jo b
t o combat d e f l a t i o n .
But e v e r y
body knows t h a t r i g h t now in f la tio n ? * and n o t d e f l a t i o n , i s o u r d i f f i c u l t y .
There a re s e v e r a l o th e r s im p le ^ s ta n d a r d s by w hich i t can be seen t h a t
u n f i l l e d n eed s f o r te x e s a r e enorm ous. I n p a r t i c u l a r ;
0)
( 2)
(3 )
(4 )
We a r e f o r c e d t o b o rro w v e r y h e a v i l y a t com m ercial b a n k s;
R e la tiv e t o o u r e x p e n d itu r e s , o u r ta x e s a r e f a r below th e
s ta n d a r d s o f B r i t a i n and C anada;
P r e s s u r e i n th e r a t i o n i n g and p r i c e c o n t r o l f i e l d s i n d i c a t e s
t h a t e x c e s s sp e n d in g power n e e d s t o be re d u c e d ; and
The r i s e i n i n t e r e s t c h a rg e s on th e p u b li c d e b t p o in t s t o
g r e a t d i f f i c u l t i e s i n a r r a n g in g p o s tw a r b u d g ets#
Bank B orrow ing
D uring t h e c a le n d a r y e a r 1942, th e amount o f f e d e r a l s e c u r i t i e s h e ld
by banks r o s e $ 2 3 - l/2 b i l l i o n . The T re a su ry * s: p r o v i s i o n a l f in a n c in g p la n s
c a l l f o r a somewhat s m a lle r r i s e d u r in g 1943 and a g a in d u r in g 1944. I f
bank f in a n c in g i s to be re d u c e d to s a f e l e v e l s , h ow ever, we s h a l l need a l l
t h e h e lp we can g e t b o th from ta x e s and from v o lu n t a r y p u rc h a s e s o f bonds
by p r i v a t e c i t i z e n s .
War f in a n c in g th ro u g h b an k s i s re c o g n iz e d ev ery w h ere as d a n g e ro u s , s in c e
i t le a d s d i r e c t l y to an in c r e a s e i n th e c a s h a s s e t s h e ld by th e p u b li c .
When a bank buys b o n d s, i t commonly s e t s up a "war lo a n a c c o u n t" p a y a b le
to t h e U n ite d S t a t e s T r e a s u r y . T h is p r o c e s s i n c r e a s e s th e c a s h a s s e t s o f
th e T re a s u ry ; b u t o b v io u s ly , th e bank h a s no r i g h t t o dock any c u s to m e r 's
a c c o u n t b e c a u se th e bank h as b o u g h t b o n d s, so t h a t t h e r e i s no c o rre s p o n d in g
d e c re a s e i n th e p u b l i c 's c a sh a s s e t s . As th e T r e a s u r y 's sp en d in g d r a in s
th e w ar lo a n a c c o u n ts , th e fu n d s come i n t o th e p o ck etb o o k s and checkbooks
o f in d i v i d u a l c i t i z e n s and o f b u s in e s s f ir m s . E x p an sio n o f bank in v e s tm e n ts
in c r e a s e d th e t o t a l o f c o in , p a p e r money and c h e c k in g d e p o s it s h e ld by th e
p u b lic by 29 p e r c e n t d u r in g th e y e a r 1942. I t i s o b v io u s t h a t An in c r e a s e
■%
- 3 -
o f t h i s m a g n itu d e i n th e amount o f money p e o p le have im m e d ia te ly a v a i l a b l e
f o r sp e n d in g means a ls o an i n c r e a s e in th e d a n g e r o f a sp en d in g s p r e e .
C om parison w ith f o r e ig n ta x e s
B r i t i s h , C an ad ian and German s ta n d a r d s o f w ar f in a n c e c a l l f o r ta x e s
to c o v e r ab o u t h a l f o f governm ent e x p e n d i tu r e s . We have b een c o v e rin g ab o u t
o n e - t h i r d , and a b o u t th e same l e v e l o f co v e ra g e i s i n p r o s p e c t, u n d er e x i s t
in g la w s, f o r th e f i s c a l y e a r 1 9 4 3 -4 4 ,
In u s in g f o r e ig n t a x e x p e r ie n c e as a s ta n d a r d * i t m ust be remembered
t h a t e v e ry o th e r t o o l o f i n f l a t i o n c o n t r o l b i t e s d e e p e r a b ro ad th a n h e r e .
The t h r e e c o u n t r i e s j u s t named a l l have lo n g e r e s t a b l i s h e d p r i c e - c o n t r o l
s y ste m s . D e s p ite t h e i r h ig h e r t a x e s , a l l t h r e e have b een a t l e a s t as
s u c c e s s f u l as we have i n p e r s u a d in g c i t i z e n s to buy bonds u n t i l i t h u r t s .
Both B r i t a i n and Germany have v e r y much b r o a d e r and s tr o n g e r r a t i o n i n g con
t r o l s th a n w e. In u s in g ta x e s t o s u p p o rt th e s e o th e r c o n t r o l s , we sh o u ld
p l a i n l y a llo w f o r th e f a c t t h a t o u r n o n - ta x c o n t r o l s w i l l p ro v e more le a k y .
P r e s s u r e o f e x c e s s sp e n d in g power
P r e s e n t p r o s p e c ts a r e t h a t c i t i z e n s w i l l r e c e iv e incom es o f ab o u t $150
b i l l i o n i n th e f i s c a l y e a r 1 9 4 3 -4 4 . Of t h i s am ount, ab o u t $20 b i l l i o n w i l l
be a b so rb e d by th e p e r s o n a l ta x e s now i n f o r c e . To buy up a l l a v a i l a b l e
s u p p lie s o f consum er goods and 's e r v i c e s a t c e i l i n g p r i c e s c a l l s f o r a b o u t
$85 b i l l i o n , le a v in g e x c e s s sp e n d in g power o f ab o u t $45 b i l l i o n .
I f co n
sum ers u se any p a r t o f th e e x c e s s to push t h e i r sp en d in g above $85 b i l l i o n ,
l i v i n g c o s ts w i l l be f u r t h e r i n f l a t e d .
A lre a d y we have had a good d e a l o f t r o u b l e w ith th e en fo rc e m e n t o f
r a t i o n i n g and p r i c e c o n t r o l . On th e OPA’ s own a u t h o r i t y , we a re t o l d t h a t
r e t a i l fo o d p r i c e s a v e ra g e 5 p e r c e n t above c e i l i n g s . G a s o lin e and m eat show
a p e r s i s t e n t te n d e n c y to le a k o u t o f r e g u l a r c h a n n e ls and flo w t o b la c k
m a rk e ts . I l l i c i t m a rk e ts in r a t i o n coupons a r e d e v e lo p in g h e re and t h e r e .
We m ust remember t h a t te m p ta tio n s to go i n t o th e b la c k m a rk e t a r e on
th e i n c r e a s e . U n til v e r y r e c e n t l y s u p p lie s have b een good enough to a llo w
consum ers to sav e more and consume more t o o . As i t g e t s t o be a q u e s tio n
o f consum ing l e s s , more p e o p le w i l l be i n c l i n e d t o d i v e r t s a v in g s to b la c k
m a rk e t s p e n d in g . At th e same tim e e x c e s s sp en d in g power from c u r r e n t income
i s on th e i n c r e a s e ; and b e s id e s c u r r e n t r e c e i p t s , consum ers have on hand a
r a p i d l y grow ing cash a c c u m u la tio n from p r e v io u s s a v in g s .
T his s i t u a t i o n
c o n ta in s n o t o n ly a t h r e a t o f w artim e i n f l a t i o n , b u t a ls o a t h r e a t o f p o s t
w ar i n f l a t i o n — an d , on th e r e c o r d o f p a s t w a r s , - p o stw a r i n f l a t i o n s a r e th e
more d a n g e ro u s .
We need more t a x e s t o re d u c e th e s e te m p ta tio n s f o r i n f l a t i o n a r y
s p e n d in g ,
I h is i s p l a i n and u n p le a s a n t t a l k ; and p e o p le who a r e f r a n k
a b o u t t h i s i s s u e a r e i n c o n s ta n t d a n g e r o f b e in g a c c u se d o f " la c k o f f a i t h
in human n a t u r e " . But nobody e v e r had a more c h a r i t a b l e v iew o f human
n a tu r e th a n th e a u th o r o f th e L o rd f s P r a y e r , and one o f th e c e n t r a l p e t i t i o n s
o f t h a t p r a y e r i s " le a d us n o t i n t o te m p ta t io n , b u t d e l i v e r us from e v i l " .
I n c i d e n t a l l y , th e a d v o c a te s o f f a i t h i n human n a tu r e sh o u ld bew are how th e y
assum e t h a t A m erican c i t i z e n s l a c k th e p a t r i o t i s m and good s e n s e t o t a x
th e m s e lv e s a d e q u a te ly i n tim e o f w a r ,
F or th e coming y e a r , A m ericans w i l l have $15 o f sp en d in g pow er, a f t e r
ta x e s a r e ta k e n o u t , f o r e v e ry $10 w orthy o f goods a v a ila b le *
In B r i t a i n
t h e r a t i o i s o n ly a b o u t $12 f o r $10 w o rth o f goods* The p r o s p e c tiv e
A m erican r a t i o
w hich a llo w s o n ly f o r sp e n d in g power from c u r r e n t income
and ig n o r e s p a s t c a s h a c c u m u la tio n s
i s c l e a r l y to o h ig h f o r s a f e t y ,
K ise i n i n t e r e s t c h a rg e s
From a f i g u r e o f $ 1 ,3 b i l l i o n i n th e f i s c a l y e a r 19 4 1 -4 2 , i n t e r e s t
on th e p u b li c d e b t i s e x p e c te d t o r i s e t o $3 b i l l i o n i n th e y e a r 1 9 4 3 -4 4 .
By th e end o f t h e y e a r i n Ju n e , 1944, i n t e r e s t w i l l be, ru n n in g a t a r a t e
o f $4 b i l l i o n p e r annum, assu m in g th e p r e s e n t low a v e ra g e i n t e r e s t r a t e
o f 2 p e r c e n t s t i l l a p p lie s * E v ery y e a r o f w ar, on th e p r e s e n t f i n a n c i a l
b a s i s , w i l l add a t l e a s t $ l - l / 2 t o $2 b i l l i o n .
A f te r th e w a r, h eav y i n t e r e s t c h a rg e s w i l l be a g r e a t h a n d ic a p i n r e
s h a p in g th e F e d e r a l b u d g e t. D uring th e y e a r s when we a r e w o rk in g o f f th e
w artim e b a c k lo g o f u n s a t i s f i e d consum er and b u s in e s s demand, th e Government
sh o u ld have a s u r p lu s r a t h e r th a n a d e f i c i t , i f p o s tw a r i n f l a t i o n i s to be
a v o id e d . But i n t h e f a c e o f h eav y i n t e r e s t c h a r g e s , a s u r p lu s means e i t h e r
c o n tin u in g w artim e t a x r a t e s f o r y e a r s o r s t a r v i n g u r g e n t e x p e n d itu r e s f o r
p u b lic w o rk s, p u b lic h e a l t h , and e d u c a tio n * The way t o keep t h i s pro b lem
w ith i n m anageable l i m i t s i s t o a c t now t o ch eck th e r i s e o f d eb t*
*
II.
Yihen c i t i z e n s have money incom es o f $150 b i l l i o n and o n ly a b o u t $85
b i l l i o n w o rth o f goods t o b u y , i t i s o b v io u s t h a t t h e y have an enorm ous
ta x a b l e c a p a c i t y - - f a r more th a n t h e $20 b i l l i o n o f p r e s e n t p e r s o n a l ta x e s
w i l l a b s o r b , A r ig o r o u s s ta n d a r d o f a n t i - i n f l a t i o n a r y w ar f in a n c e , aimed
a t t h e m ost s t r i n g e n t c o n t r o l o f w antim e and p o s tw a r i n f l a t i o n c o n s i s t e n t
w ith e f f e c t i v e p r o s e c u tio n o f th e w ar, would r e q u ir e a b s o rb in g i n ta x e s th e
maximum amount p o s s i b le w ith o u t d e f l a t i o n , le a v in g c i t i z e n s w ith enough t o
buy th e $85 b i l l i o n w o rth o f co n su m p tio n goods p lu s enough to p r o v id e
l i b e r a l l y th ro u g h s a v in g f o r th e s e c u r i t y o f t h e i r f a m i l i e s — s a y $20
b i l l i o n , I n c i d e n t a l l y , i t w ould a l s o aim t o a b s o rb a l l t h e p e r m itte d s a v
in g s i n t o w ar b o n d s, and t o t i e them down so t h a t t h e r e w ould
be no d a n g e r o f an i l l - t i m e d b u r s t o f i n f l a t i o n a r y s p e n d in g a t th e end
o f th e w ar#
S e t t i n g t a x g o a ls so h ig h , how ever, w ould c a l l f o r a v e r y c a r e f u l l y
d e s ig n e d t a x sy ste m , w h ich w ould t r i m o f f a l l t h e f a t o f e x c e s s s p e n d in g
power w ith o u t c u t t i n g i n t o t h e le a n o f j u s t i f i a b l e e x p e n d itu r e s and
n e c e s s a r y s a v in g s . U n f o r tu n a te ly , nobody knows how to do su ch a jo b p e r
fe c tly .
To av o id le a v in g to o much f a t , we m u st n ic k th e le a n h e re and t h e r e ;
b u t t o av o id c u t t i n g d a n g e r o u s ly i n t o t h e le a n , we m ust le a v e r a t h e r more
f a t th a n we s h o u ld l i k e t o . Out a c t u a l t a x g o a ls a r e s e t a good d e a l below
th o s e o f a p e r f e c t i o n i s t s ta n d a r d ; and ev en so we m ust d e s ig n o u r t a x e s
c a r e f u l l y to a v o id d o in g s e r i o u s dam age. As we in c r e a s e th e w e ig h t o f th e
le v y we m ust be more c a r e f u l t o t a i l o r i t to i n d i v i d u a l s i t u a t i o n s . I t i s
t o l e r a b l e to be u n f a i r on a sm a ll s c a l e ; b u t th e h e a v i e r ta x e s grow, t h e
harder, we m ust t r y n o t to m a g n ify th e u n f a ir n e s s a lo n g w ith th e t a x e s .
G iven t h e c o n s t i t u t i o n a l b a r r i e r to F e d e ra l ta x e s on p r o p e r t y , we
have a r a t h e r li m i t e d ra n g e o f rev en u e s o u r c e s . We c a n t a x ;
A,
S*
C,
D*
S a le s o f com m odities
C o rp o ra tio n p r o f i t s
E s t a t e s and g i f t s
P e rs o n a l incom es ( ta k i n g th e te rm b r o a d ly t o in c lu d e p o s s i b le
ta x e s on " g ro s s in co m e", p a y r o l l s , e t c . ) o r sp e n d in g s from
th o s e incom es.
Some c o m b in a tio n o f th e s e ta x e s m ust be made t o do th e jo b .
Taxes on s a l e s o f commoditi e s
To re a d some p r e s s com m ents, one m ig h t su p p o se t h a t th e w hole problem
o f w ar f in a n c e co u ld be so lv ed , by a m o d erate le v y on com modity s a l e s .
The
id e a t h a t a 2 p e r c e n t s a l e s t a x would save th e n a t i o n seems t o have e v a p o ra te d
a t l a s t ; b u t many p e o p le s t i l l hope t h a t a 10 p e r c e n t t a x would do th e jo b .
T his hope sim p ly r e f l e c t s th e w ish to have o u r cake and e a t i t to o - - to
manage th e g i g a n t i c a d ju s tm e n ts w hich th e vmr c a l l s f o r w ith o u t any r e a l
in c o n v e n ie n c e to anybody. The a r i t h m e t i c o f th e s i t u a t i o n shows t h a t
s a l e s t a x a t i o n c o u ld n o t s o lv e o u r w hole rev en u e p ro g ram . The g r o s s y i e l d
o f a r e t a i l s a l e s t a x o f 10 p e r c e n t w ould n o t much ex ceed $5 b i l l i o n ; and
f o r s e v e r a l re a s o n s th e a c t u a l n e t g a in t o w ar f in a n c e w ould be much s m a lle r
th a n t h a t f i g u r e m ig h t s u g g e s t.
The T r e a s u r y ’ s o p p o s itio n t o g e n e r a l s a l e s t a x a t i o n h as alw ay s b een
b ased l a r g e l y on th e f a c t t h a t such t a x a t i o n b e a r s h a r d e s t on low -incom e
consum ers w ith la r g e f a m i l i e s . C oncern w ith t h e f a t e o f low -incom e consum ers
i s n o t a th i n g f o r w hich I f e e l t h a t I s h o u ld a p o lo g iz e .
But le a v in g t h i s
argum ent from e q u i t y on one s i d e , t h e r e a r e s e v e ra l- a d d i t i o n a l arg u m en ts
o f c o l d l y p r a c t i c a l c h a r a c t e r w h ich seem t o me t o make a c o n c lu s iv e c a se
a g a in s t g e n e ra l s a le s ta x e s ;
Eg
o -
(1 ) W ith t h e s o le e x c e p tio n o f p a y r o l l ta x e s d i s s o c i a t e d
from b e n e f i t s , s tile s t a x e s a r e more l i k e l y th a n any o th e r
ta x e s to p ro d u ce an i r r e s i s t i b l e d r iv e f o r h ig h e r wages
and farm p r ic e s *
N othing i s g a in e d b y ta k in g up a few
b i l l i o n s o f sp e n d in g pow er th ro u g h s a l e s ta x e s i f we have
t o p u t i t back i n t o p e o p l e d p o c k e ts th ro u g h wag®' and farm
p r i c e a d ju s tm e n ts .
(Z) A r e t a i l s a l e s t a x i s a b ig jo b a d m i n i s t r a t i v e l y . Even th e
2 p e r c e n t and 3 p e r c e n t r a t e s c u sto m ary i n S ta t e s a l e s ta x e s
' have n e c e s s i t a t e d a good d e a l o f a u d i t i n g t o make s u re s a l e s
w ere r e p o r te d , and a good d e a l o f l i t i g a t i o n t o s e t t l e w hat
ty p e s o f s a l e s w ere covered* At a 10 p e r c e n t r a t e , th e s e
problem s w ould be much more i n t e n s e .
At th e p r e s e n t tim e* t h e b u re a u o f I n t e r n a l Revenue
h a s j u s t begun t o d i g e s t th e t a s k o f h a n d lin g th e w ith h o ld in g
m a c h in e ry u n d e r t h e incom e t a x , and th e jo b o f h a n d lin g
q u a r t e r l y r e t u r n s i s ,s t i l l a h e a d . Both o f th e s e jo b s have
to be w e ll d o n e; and th e y w i l l be im p e r ile d i f a b ig s a le s
t a x jo b i s lo a d e d on to p o f th em ,
(3 ) W hile th e f i r s t draw back c o u ld b e m i t i g a t e d b y ex em p tin g
some c o m m o d ities, to do so w ould make th e seco n d problem
y e t more s e r i o u s ,
For th e s e re a s o n s t h e T r e a s u r y b e l i e v e s t h a t a g e n e r a l F e d e r a l s a l e s t a x
i s n o t w o rth w h ile
s t r i c t l y a s a m a tte r o f c o ld -b lo o d e d p r a c t i c a l c a l
c u la tio n .
There i s a good d e a l ^ f room- f o r i n c r e a s i n g th e k in d o f s a l e s t a x a t i o n
we have a l r e a d y , t h a t i s , e x c i s e s .
The c o l l e c t i o n m a c h in e ry i s a l r e a d y
in o p e r a tio n and th e p u b lic i s u n d o u b te d ly p re p a re d to a c c e p t f u r t h e r ta x e s
on " l u x u r i e s ’1 — and to a c c e p t w artim e d e f i n i t i o n s o f " lu x u r i e s " - - w ith o u t
e x p e c tin g t o be com pensated b y in c r e a s e s i n money in co m es. Revenue p o s s i*
b i l i t i e s h e re a r e c o n s id e r a b le ; m aking o u r e x c is e s r e a l l y d r a s t i c m ig h t
v e ry w e ll b rin g i n two b i l l i o n . But th e b u lk o f th e w ar rev en u e pro b lem m ust
be s o lv e d e n t i r e l y o u ts id e th e s a l e s and e x c is e t a x f i e l d s .
T a x a tio n o f C o rp o ra te P r o f i t s
The C ongress and th e A d m in is tr a tio n have b een as one i n w is h in g t o
p re v e n t any c o r p o r a t io n from r e a p in g e x c e s s iv e w ar p r o f i t s . On th e whole
we have b een more s u c c e s s f u l h e re th a n i n o t h e r f i e l d s o f t a x a t i o n . Out o f
a t o t a l r i s e o f ab o u t $14 b i l l i o n i n c o r p o r a t io n income b e f o r e ta x e s from
1939 to 1942, o v e r 75 p e r c e n t i s a c c o u n te d f o r by in c r e a s e d t a x l i a b i l i t y and
l e s s th a n 25 p e r c e n t by in c r e a s e d c o r p o r a te n e t incom e. For 1942 c o r p o r a te
n e t income a g g re g a te d $ 7 ,4 b i l l i o n ; and t a x l i a b i l i t i e s w ere much g r e a t e r
th a n t h a t am ount.
- 7 m
I t i s i n t h i s p e r s p e c t iv e t h a t oiie m ust i n t e r p r e t th e wr e l i e f w
c o rP °r a t ^
e x c e s s - p r o f i t s law l a s t y e a r by
contrarv f f i / * } * * * . l s . n o t & l m i t o re d u o e t h e t a x re v e n u e . On t h e 7
S
'
lB t T t
l i n ° r a6e th e . t o t a l t a x le v y w hich a l l c o r p o r a tio n s
i f v frv h L h V ^
b e a r by rem ed y in g t h e i n j u s t i c e s w h ich w ould a r i s e
i t v e ry h ig h r a t e s w ere a p p lie d m e c h a n ic a lly .
taxation
U 0t
increase th e s e l e c t
tax
S S° Z e ®E0ap® t h e n e o e s s i t y o f d e te rm in in g th e c o r p o r a te
m fo rtu n a tf on! ^
P
10? 6 - f o r tu n a t n and u n f o r t u n a t e , on th e b a s i s o f th e
",
“ a t c o r p o r a t io n s a lo n e .
The p ro c e d u re i s to p e r m it c o r p o r a te t a x a ™ ™ !e t w Ub‘5 t i t u * ° “ e x c e s s - p r o f i t s c r e d i t b a s e d upon a c o n s t r u c t i v e
a v e ra g e b a s e p e r io d n e t incom e i n p la c e o f th e a c t u a l e x c e s s - p r o f i t s c r e d i t
in c a s e s w here u se o f t h e a c t u a l e x c e s s . p r o f i t s c r e d i t w ould r e s u l t i n an
e x c e s s - p r o f i t s t a x w hich i s " e x c e s s iv e and d i s c r i m i n a t o r y " .
The c o m p u ta tio n o f inoorae s u b j e c t t o e x c e s s - p r o f i t s t a x in v o lv e s a
com parison b etw een an e x c e s s - p r o f i t s c r e d i t r e p r e s e n t i n g a s ta n d a r d o f
norm al e a r n in g s and c u r r e n t in co m e. I f t h e s ta n d a r d a s o r d i n a r i l y computed
does n o t r e p r e s e n t a norm b e c a u se th e a c t u a l a v e ra g e b a s e p e r io d e a r n in g s
re n o t norm al o r b eo au se th e e x c e s s - p r o f i t s c r e d i t b ased on in v e s t e d
c a p i t a l ( m t h e o ase o f ta x p a y e r s n o t e n t i t l e d t o u s e t h e a v e ra g e e a r n in g s
b a s e ) d o es n o t r e f l e c t a n o m a l r e t u r n f o r th e b u s in e s s , a f a i r c o m p ly s ! n
i s im p o s s ib le and r e l i e f i s i n d i c a t e d . G e n e r a lly f o u r ty p e s o f s i t u a t i o n s
a re re c o g n iz e d in w hich t h i s s u b s t i t u t i o n may be a u th o riz e d #
,
A bnom al E v e n t, C ases w here some ab n o rm al e v e n t h a s p u lle d th e
ta x p a y e r s e a r n in g power down d u r in g th e 1936-39 b a s e p e r i o d . B e sid e s
the p h y s ic a l e v e n ts re c o g n iz e d u n d e r th e 1941 Act ( f i r e s , e t c . ) , w h ich had
e f f e c t o f i n t e r r u p t i n g o r d im in is h in g norm al a c t i v i t y , th e 1942 Act
re c o g n iz e s te m p o ra ry econom ic d i s l o c a t i o n s c a u s in g b u s in e s s d e p r e s s io n i n
th e o a se o f a ta x p a y e r o r an i n d u s t r y o f w hich i t was a member. G e n e r a lly
th e c o n s t r u c t i v e a v e ra g e b a se p e r io d n e t incom e i s t o be b u i l t up by t a k in g
he 1936*39 r e c o r d and a d j u s t i n g e a r n in g s upw ards f o r th e y e a r s a f f e c t e d
y th e a b n o r m a l i t i e s . S in c e t h e g o a l i s norm al e a rn in g s * th e ta x p a y e r i s
r e q u ir e d a l s o t o make downward a d ju s tm e n ts f o r an y a b n o rm a lly f a v o r a b le
e v e n ts d u rin g th e p e rio d ^ o r to show t h a t no su c h e v e n ts o c c u r r e d .
(2 )
I n d u s t r i e s s u b j e c t t o c y c l e s o r s p o r a d ic p r o f i t s .
Cases w here t h e 1936-39 p e r io d was one o f d e p r e s s e d e a r n in g s i n th e ta x *
payei s in d u s tr y * b u t no s p e c i a l ab n o rm al e v e n t i s th e a p p a r e n t c a u s e .
These w i l l o c c u r g e n e r a l l y i f th e p e r io d s o f m o d e ra te p r o s p e r i t y o f an
i n d u s tr y do n o t c o in c id e w ith p e r io d s o f m o d e ra te p r o s p e r i t y o f b u s in e s s i n
g e n e r a l. T ax p a y ers in i n d u s t r i e s c o n n e c te d w ith b u i l d i n g c o n s t r u c t i o n , f o r
exam ple, m ig h t be a b le t o show t h a t t h e i r i n d u s t r i e s w ere d e p re s s e d f o r th e
p e r io d from 1936 to 1939 b e c a u se b u i l d i n g i s s u b j e c t t o lo n g e r sw ings th a n
b u s in e s s i n g e n e r a l, and n e v e r re a c h e d p r o s p e r i t y l e v e l s i n th e 1936*39 b ase
-
8
-
p e r io d . The c o n s t r u c t i v e average, b a se p e r io d n e t incom e i n such c a s e s
m ig h t be b u i l t up by a d o p tin g some p e r io d o th e r th a n th e p e r io d from
1936 t o 1939 ae th e b a se p e r i o d ; ; b u t i t w ould have t o be shown t h a t t h i s
p e r io d was a p e r io d o f a v e ra g e norm al e a r n in g s f o r th e ta x p a y e r and b o re
th e same r e l a t i o n t o t h e p r o f i t d y c le s o f th e ta x p a y e r and th e t a x p a y e r 's
i n d u s t r y as 1936-39 d id t o th e p r o f i t c y c le o f b u s in e s s a s a w h o le. Tax
p a y e rs and t h e i r r e p r e s e n t a t i v e s [sh o u ld b e a r i n mind t h a t t h e i r c la im t o
d e p r e s s io n i n 1936-39 m ust be b asd d on e v id e n c e v i s i b l e t o t h e naked e y e ,
and on com mon-sense a n a l y s i s ; i f >it t a k e s th e m a g n if ic a tio n o f h ig h e r m a th e
m a tic s t o show th e d i f f e r e n c e , i t c a n n o t be e x p e c te d t o im p re s s th e T re a s u ry ,
(3 )
Base P e r io d E a rn in g s F a i l to R e p re s e n t M atured E a rn in g Pow er.
C ases w here b a se p e r io d e a r n in g s a r e n o t a f a i r s ta n d a r d o f n o rm al e a r n in g s
b e c a u se d u rin g th e b a s e p e r io d t h e ta x p a y e r was d e v e lo p in g norm al e a r n in g
pow er a f t e r i t s e s ta b l is h m e n t , o r a f t e r a s h a rp change i n c h a r a c t e r o f i t s
b u s in e s s w hich o c c u rre d im m e d ia te ly p r i o r to o r d u r in g th e b a se p e r io d . A
change i n t h e c a p a c i t y f o r p r o d u c tio n o r ty p e o f o p e r a tio n s a c t u a l l y e f f e c t e d
a f t e r December 31, 1939, a s a r e s u l t o f a commitment t o t h i s c o u rs e o f a c t i o n
in c u r r e d p r i o r to J a n u a ry 1, 1940, i s deemed t o be a change o c c u r r in g on
December 31, 1939.
In t h i s ty p e o f c a s e , r e l i e f ta k e s t h e form o f a v e ra g e e a r n in g s
r e c o n s tr u c te d f o r th e e n t i r e b a se p e r io d upon th e b a s i s o f th e l e v e l o f
norm al o p e r a t io n s a c t u a l l y r e a l i z e d d u r in g th e b a s e p e r io d . I f th e t a x
p a y e r d id n o t re a c h i t s l e v e l o f norm al o p e r a tio n s d u r in g th e b a se p e r io d ,
i t w i l l be c o n s id e r e d t o have commenced b u s in e s s o r to have changed th e
c h a r a c t e r o f i t s b u s in e s s two y e a r s e a r l i e r , and th e l e v e l o f norm al o p e r a
t i o n s w hich w ould have b een a t t a i n e d had th e b u s in e s s b een so o n e r commenced
o r changed w i l l be u sed a s th e b a s i s f o r r e c o n s t r u c t i o n f o r th e e n t i r e b a se
p e r io d .
(4 )
B u s in e s s E s ta b lis h e d s in c e Base P e r io d .
C ases w here t h e ta x p a y e r h a s no b a se p e r io d e a r n in g s b e c a u se th e b u s in e s s
was s t a r t e d a f t e r December 31, 1939. I n su ch c a s e s t h e r e i s no e x p e rie n c e
o f th e t a x p a y e r 's m a tu re d e a r n in g power u n d er 1936-39 c o n d i t i o n s . I t i s
l i k e l y t h a t s u p p o r t f o r a t a x p a y e r 's c o n s t r u c t i v e a v e ra g e b a s e p e r io d n e t
income may have to be found i n th e b a s e - p e r io d e x p e r ie n c e o f co m parable
b u s in e s s e s .
I t i s n o t in te n d e d by t h i s to r e s u r r e c t th e " c o m p a ra tiv e " t e s t
o f th e 1918 A c t, b u t m e re ly to in s u r e th e u se o f a l l a v a i l a b l e in f o r m a tio n
upon w hich a s u b j e c t i v e d e t e r m in a tio n o f a t a x p a y e r 's n o rm al e a r n in g s can
be p r e d i c a t e d . I n c a s e s o f t h i s s o r t as w e ll as i n c a s e s in v o lv in g a com
mencement o r change i n c h a r a c t e r o f a b u s in e s s i n w hich th e " tw o -y e a r p u sh b ack " r u l e i s u sed to d e te rm in e a l e v e l o f norm al e a r n in g s , b a s e - p e r io d n e t
incom es w i l l be s c a le d down somewhat t o p r e v e n t ta x p a y e r s from r e c e iv in g
d o u b le a d v a n ta g e f o r t h e i r i n i t i a l p e r io d o f low e a r n in g s - - once th ro u g h a
h ig h c o n s t r u c t i v e a v e ra g e b a se p e r io d n e t incom e and a second tim e th ro u g h
c a r r y i n g fo rw a rd unused e x c e s s - p r o f i t s c r e d i t s from th e e a r l y y e a r s o f th e w a r.
B e sid e s th e s e fo u r c l a s s e s o f c a s e s , S e c tio n 722 c o n te m p la te s r e l i e f
f o r c a s e s w here f a c t o r s n o t s p e c i f i c a l l y s p e ll e d o u t i n S e c tio n 722 may
re a s o n a b ly be c o n s id e r e d t o have made th e a c t u a l a v e ra g e b a se p e r io d n e t
income an in a d e q u a te s ta n d a r d o f norm al e a r n i n g s . The a p p l i c a t i o n o f
S e c tio n 722 to t h i s c l a s s o f c a s e s , how ever, m ust n o t be i n c o n s i s t e n t w ith
. e Pr i n c ^Pl e s > c o n d i t i o n s , and l i m i t a t i o n s u n d e r ly in g th e s p e c i f i c s t a t u t o r y
i n s ta n c e i n w hich r e l i e f w ould be p r o p e r .
I t c a n n o t be to o much em phasized t h a t S e c tio n 722 i s f o r th e p u rp o se
o f w o rk in g e q u i t y and o f m i t i g a t i n g ex trem e c a s e s o f h a r d s h ip . I f i t s
p r o v is io n s a r e ab u sed — a s w ere th e c o g n a te p r o v is io n s o f th e 1918 A ct __
d r a s t i c m o d i f ic a t io n s o f th e s t a t u t e w i l l u n d o u b te d ly r e s u l t , and o u r
a b i l i t y t o tem p er th e a p p l i c a t i o n o f e x c e s s - p r o f i t s t a x e s f o r 1943 and
l a t e r y e a rs w i l l be im p a ire d .
Some f u r t h e r re v en u e can p r o b a b ly be o b ta in e d from c o r p o r a te p r o f i t s ,
p a r t i c u l a r l y i f r e l i e f p r o v is io n s can be f u r t h e r im p ro v ed . But t h e r e i s no
u se h o p in g t o r a i s e enough from t h i s s o u rc e to make a v e r y la r g e d e n t i n
o t a l r e v e n u e ^ r e q u ir e m e n ts . Net c o r p o r a te p r o f i t s a f t e r ta x e s w ere l e s s
, 2 M illio n i n 1942* and w i l l p r o b a b ly n o t be much g r e a t e r i n 1943,
The t o t a l amount o f th e s e p r o f i t s i s o n ly a f r a c t i o n o f th e amount o f
rev en u e we n e e d ; and o b v io u s ly c a p tu r in g a f r a c t i o n o f t h a t f r a c t i o n c a n n o t
d is p o s e o f th e w hole p ro b lem .
Taxes on e s t a t e s and g i f t s
There a re s e r io u s draw backs t o t r e a t i n g e s t a t e and g i f t ta x e s as
em ergency m e a su re s.
Changes i n r a t e s do n o t b r in g i n e x t r a re v en u e v e ry
q u ic k ly . F u rth e rm o re , a m an’ s h e i r s a r e n o t r e s p o n s ib le f o r th e d a te o f
h is d ecease
a t l e a s t o u ts id e th e p ag es o f d e t e c t i v e f i c t i o n . I f h ig h
em ergency r a t e s a re to be r e p e a le d a t th e end o f h o s t i l i t i e s , th e r e s u l t
i s a p o w e rfu l d i s c r i m i n a t i o n a g a i n s t t h e h e i r s o f p e o p le who h appen to d ie
d u rin g th e w a r. I n c r e a s e s i n th e r a t e s o f e s t a t e and g i f t ta x e s s h o u ld be
s tu d ie d from t h e s ta n d p o in t o f p erm an en t d e s i r a b i l i t y , ' The w artim e peak
i n rev en u e n eed s sh o u ld n o t be u sed t o j u s t i f y d e c id in g t o le v y such
i n c r e a s e s ; though i t d o es p o in t to w ard m aking a l l d e s i r a b l e i n c r e a s e s now
r a t h e r th a n l a t e r .
A s p e c i a l p roblem in t h i s f i e l d h a s b een c r e a te d by t h e r e c e n t C u rren t
Tax Payment A c t. One o f t h e m ain arg u m en ts i n f a v o r o f f o r g iv in g t h r e e f o u r th s o f th e 1942 t a x l i a b i l i t y was t h a t much o f th e r e s u l t i n g in c r e a s e s
i n t h e e s t a t e s o f h ig h - b r a c k e t ta x p a y e r s w ould be p ic k e d up e v e n t u a ll y by
e s t a t e t a x e s . Under e x i s t i n g law , t h i s i s an o p t i m i s t i c a s s u m p tio n .
V a rio u s s p e c i a l d e v ic e s f o r m aking i t come t r u e have been s u g g e s te d , and
d e s e rv e c a r e f u l s tu d y . But i n th e end we may f i n d t h a t th e m o st a p p r o p r ia te
a d ju s tm e n t i s a g e n e r a l i n c r e a s e i n e s t a t e t a x r a t e s ,
-
10
P a y r o ll Taxes
The c a s e f o r S o c ia l S e c u r i t y ta x e s on p a y r o l l s i s somewhat s i m i l a r
to t h a t f o r e s t a t e and g i f t t a x e s . The c h a r a c t e r and s c a le o f S o c ia l
S e c u r it y chariges m u st be d e c id e d on S o c ia l S e c u r it y g ro u n d s. Revenue
c o n s id e r a tio n s sh o u ld n o t be a llo w ed to in f l u e n c e a n y th in g b u t th e tim in g
o f th e c h a n g e s; th o u g h i f th o s e changes as a b y -p ro d u c t b r in g i n e x t r a
rev en u e i t w i l l be d e c id e d ly w elcom e.
Taxes on p a y r o l l s o u ts id e t h e S o c ia l S e c u r it y fram ew ork - - t h a t i s ,
w ith o u t any c o rre s p o n d in g i n c r e a s e i n c la im s to im m ediate o r d e f e r r e d
b e n e f i t s — w ould be b o th i n e q u i t a b l e and a d i r e c t in c e n tiv e t o i n f l a t i o n a r y
wage dem ands, and do n o t d e s e rv e s e r io u s c o n s i d e r a t i o n .
G e n e ra l Taxes on p e r s o n a l incom es
The re v e n u e s o u rc e s X have m e n tio n ed so f a r p l a i n l y add up to o n ly
a f r a c t i o n o f t h e n a t i o n ’ s r e q u ir e m e n ts . T h is means t h a t th e g r e a t e r pari:
o f th e t a x re v e n u e we need m ust be draw n from p e r s o n a l in co m es -k a f a c t
fahich s h o u ld n o t s u r p r i s e us s in c e i:he r o o t c a u se o f th e i n f l a t i o n problem
i s t h a t p e r s o n a l incom es a r e o v er-e x p a n d e d r e l a t i v e to co n su m p tio n goods
s u p p lie s .
U n til r e c e n t l y , w artim e u se o f p e r s o n a l incom e ta x e s was h an d icap p ed
by th e o n e -y e a r la g ' b etw een r e c e i p t o f ta x a b l e income and l i a b i l i t y t o
£>ay t h e t a x . The C u rre n t Tax Payment Act h as cu red t h i s d e f e c t . I t i n
s u r e s t h a t any in c r e a s e i n t a x l i a b i l i t y ( i f p r o p e r ly r e f l e c t e d i n th e
w ith h o ld in g r a t e s ) w i l l ta k e e f f e c t im m e d ia te ly on c o n su m e rs’ sp en d in g
pow er, and w i l l ta k e a form f o r w hich th e o r d in a r y ta x p a y e r can b u d g et
e ffic ie n tly .
To s e c u re an a d e q u a te in c r e a s e i n re v e n u e , t h e n a t i o n n eed s an i n c r e a s e
i n p e r s o n a l ' income t a x r a t e s - - p r o b a b ly a ls o a d e c r e a s e i n ex em p tio n s - t o ta k e e f f e c t a t th e b e g in n in g o f 1944, Some s k e p t i c s q u e s tio n w h e th e r
ta x p a y e r s can b e a r an i n c r e a s e i n p e r s o n a l income t a x paym ents to th e
F e d e ra l Governm ent from th e $4 b i l l i o n l e v e l o f th e c a le n d a r y e a r 1942 to
th e en o rm o u sly l a r g e r sums w h ich a re n e c e s s a r y t o h o ld th e a n t i - i n f l a t i o n
l i n e i n th e c a le n d a r y e a r 1944. T his way o f p u t t i n g th i n g s , how ever,
ig n o r e s t h e r i s e i n incom e. A f a i r e r way to p u t t h e q u e s tio n w ould be
more l i k e t h i s ;
I n 1942, p e r s o n a l income a f t e r paym ent o f a l l p e r s o n a l
ta x e s am ounted t o $109 b i l l i o n , o u t o f w hich c i t i z e n s s p e n t $82 b i l l i o n
and saved $27 b i l l i o n .
In 1944, income b e f o r e ta x e s w i l l c l e a r l y exceed
$150 b i l l i o n , and th e amount consum ers c a n spend w ith o u t' p u sh in g up p r i c e s
w i l l be v e ry l i t t l e i f a t a l l above 1942 e x p e n d itu r e s .
Could c i t i z e n s
make s h i f t somehow w ith an. incom e a f t e r ta x e s o f $10 b i l l i o n h ig h e r th a n
i n 1942? I t i s p r e t t y o b v io u s t h a t th e y co u ld '. W ell, i f s o , th e y co u ld
b e a r a t l e a s t $30 b i l l i o n o f p e r s o n a l t a x e s .
-
11
-
T here i s e v e ry re a s o n t o b e l ie v e t h a t a d e q u a te t a x e s a r e p r a c t i c a l »**
b o th a d m i n i s t r a t i v e l y and i n te rm s o f th e n e c e s s a r y a d ju s tm e n ts i n t a x p a y e rs b u d g e ts . R a te s and ex em p tio n s m ust be a d ju s te d t o make ta x e s
a d e q u a te . But j u s t a s w ith c o r p o r a tio n ; t a x e s , t h e r e i s much to be s a id
f o r com bining a c t i o n t o in c r e a s e re v e n u e w ith a m easu re o f t a x r e l i e f .
The
t a x p a y e r ’ s e a r n in g s and o th e r incom e gijire o n ly a f i r s t a p p ro x im a tio n to
th e amount on w h ich we can f a i r l y a s k him t o p ay t a x e s . S u b tr a c t in g ou r
p r e s e n t ex em p tio n s and d e d u c tio n s g iv e s; a second a p p ro x im a tio n w hich h as
proved r e a s o n a b ly s a t i s f a c t o r y i n a p e r io d o f low t a x r a t e s . As r a t e s
r i s e , we sh o u ld lo o k f o r ways o f p r o t e c t i n g ta x p a y e r s whose w o rk in g and
l i v i n g c o n d itio n s s u b je c t them t o s p e c i a l b u rd e n s . There i s a l s o a s tr o n g
c a s e f o r g iv in g r e l i e f i n c o n s id e r a tio n o f n o n - i n f l a t i o n a r y u s e s o f f u n d s .
T h is was th e aim o f th e " sp e n d in g s t a x ’* p r o p o s a l b ro u g h t fo rw ard by th e
T re a su ry l a s t y e a r? th e s p e n d in g s t a x w ould be e s s e n t i a l l y a s u p p le m e n ta ry
income t a x u n d e r w h ich r e l i e f w ould be g r a n te d f o r am ounts o f income p u t
t o su ch u s e s a s w ar bond p u r c h a s e s , l i f e in s u r a n c e o r rep ay m en t o f d e b t s .
A dequate ta x e s w ould n o t i n c r e a s e w artim e h a r d s h ip s
T here i s a n o tio n i n many q u a r t e r s t h a t le v y in g a d e q u a te ta x e s would
somehow m a g n ify th e h a r d s h ip s w h ich w ar im p o ses on t h e A m erican p e o p le .
What l i e s b e h in d t h i s n o tio n i s s h e e r w is h f u l t h i n k i n g ; "W ishes, l i k e
c a s t l e s i n th e a i r , a re in e x p e n s iv e and n o t t a x a b l e . ” Of c o u r s e , i t would
be n ic e i f we c o u ld have a l l o u r w ar s u p p lie s p ro d u ced b y m agic and i f we
could u se a l l o u r n a t i o n a l r e s o u r c e s to p ro d u ce th e k in d o f co n su m p tio n
goods p e o p le w ish th e y h a d . But we d o n ’t l i v e i n t h a t k in d o f a dream w o rld .
Pour m inus two s t i l l e q u a ls tw o .
The w ar p r o d u c tio n we need m ust c u t i n t o
c i v i l i a n s u p p l i e s , A co m p lete f a i l u r e t o le v y a d d i t i o n a l ta x e s w i l l n o t
a b o l is h t h a t h a rd f a c t .
We c a n n o t w ish s h o r ta g e s o u t o f e x i s t e n c e . N e ith e r can we c o n ju re
goods o u t o f t h i n a i r by f a i l i n g to t a x a d e q u a te ly , th u s le a v in g consum ers
w ith t e n s o f b i l l i o n s f o r w h ich th e y have no h o n e s t u s e . In a d e q u a te t a x a t i o n
d o e s n ’t o f f e r c i t i z e n s th e p r i v i l e g e o f consum ing more goods th a n a r e in
e x i s t e n c e ; i t m e re ly g iv e s them th e p r i v i l e g e o f j o i n i n g i n a mad scram b le
f o r t h e goods t h a t do e x i s t .
By t r y i n g t o w is h th e i n f l a t i o n problem o u t o f
e x i s t e n c e , we have a l r e a d y w ish ed o u r s e lv e s i n t o a 25 p e r c e n t i n f l a t i o n
s in c e th e b e g in n in g o f 1941.
I f we aim to h o ld th e l i n e from now on, one o f th e b a s ic p a r t s o f ou r
program m ust be a t a x p o l i c y w hich lo o k s f a c t s i n th e eye and f a c e s con
s e q u e n c e s , We may n o t l i k e th o s e c o n s e q u e n c e s. They mean, f o r some o f u s ,
a d e s c e n t from th e i v o r y to w e rs i n w hich we have been l i v i n g to th e s t a r k
le v e ls o f r e a l i t y .
That d o es n o t d i s t u r b me to o much. Most o f , u s w ere
b ro u g h t up t o ta k e th e b i t t e r w ith t h e s w e e t. Most o f us r e a l i z e t h a t f o r
e v e r y th in g we h a v e , we have t o g iv e up so m eth in g e l s e .
I t w i l l be a b a r g a in
i f we p r e v e n t i n f l a t i o n , w h a te v e r t h e c o s t i n t a x e s .
<* oOo -
TREASURY DEPARTMENT
Washington
RELEASE, UO!*IKO HKSSFAPSRS,
Tuesday, June 29. 190 •-------------
for
Pr®«® S»ryie.
3 7 ' 2 6
Tha Secretary of the Treasury announced la st night that the sub
scription books for the current offering of 1-1/2 percent Treasury Notes
of Series A-1947 w ill close at the close of business today, June 29.
Subscriptions addressed to a Federal Reserve Bank, or Branch, or
to the Treasury Department, and placed in the s a il before 12 o ’clock aidnight, Tuesday, June 29, w ill be considered as having been entered before
the close of the subscription books*
*, V-
Announcement o f the amount o f subscriptions and the b asis of allot
ment w ill probably be made on Tuesday, July 6.
treasury department
Washington
FOR RELEASE, MORNING- NEWSPAPERS
Tuesday, June 29, 1 9 ^ 3 .
P r e s s S e r v ic e
No, 3 7 -2 6
The S e c r e t a r y o f th e T re a s u r y announced l a s t n ig h t
that, th e s u b s c r i p t i o n books f o r th e c u r r e n t o f f e r i n g of
1 - 1 / 2 p e r c e n t T r e a s u r y Notes o f S e r i e s A- 19^ 7 w i l l c l o s e
a t th e c l o s e o f b u s i n e s s today, June 2 9 ,
S u b s c r i p t i o n s a d d r e s s e d to a F e d e r a l Reserve Bank,
o r Branch, o r t o th e T re a s u r y Department, and p la c e d in
th e mail b e f o r e 12 o ' c lo c k m idnight, Tuesday, June 2 9 ,
w i l l be c o n s id e r e d as h a v in g been e n t e r e d b e f o r e the
c l o s e of th e s u b s c r i p t i o n books*
Announcement o f th e amount o f s u b s c r i p t i o n s and the
b a s i s o f a l l o t m e n t w i l l prob ab ly be made on Tuesday, J u l y 6 *
-0 O 0 -
TREASUHT DBPARWEKT
Washington
FOR RELEASE, MDHSIRG NEWSPAPERS,
Tuesday, June 29. 1943*
Pr««» Service
The Secretary of the Treasury announced la st evening that the tenders for
$1 ,000,000,000, or thereabouts, of 92-day Treasury b ills to be dated June 30 and to |
mature September 30, 1943, which were offered on June 25, 1943, were opened at the j
Federal Reserve Banks on June 2B.
The d etails of th is issue are as follows:
Total applied for - 11,305,659,000
Total accepted
- 1,005,718,000
(includes $58,294,000 entered on a fixed- I
price basis at 99*905 and accepted in full)
Range of accepted bids:
High
Low
A verage
price
~ 99*910 Equivalent rate of discount approx. 0.352$ per anna
- 99*904
"
*
•
*
*
0.376$ M » \
- 99.904/
■
. . .
«
0.374* " " j
(84 percent of the amount bid for at the low price was accepted.)
Federal Reserve
Bank
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
,
$
TOTAL
24,563,000
856,456,000
35,632,000
33,347,000
17,822,000
7,224,000
156,333,000
49,489,000
7,420,000
21,060,000
5,795,000
90.518,000
H ,305,659,000
21,931,000
588,940,000
32,225,000
33,059,000
17,166,000
6,957,000
140,133,000
42,701,000
7,378,000
20,347,000
5,659,000
g?T222.000
H ,005,718,000
TREASURY DEPARTI'REtfT
W ashington
kl-
FOR'RELEASE, MORNING NEWSPAPERS,
T u e s d a y , J u n e 29., 194 3,
F ” 2 lT - 4 T .
P r e s s ' Service
No, 37-2 7
.........
The S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t
th e te n d e rs f o r . f t l , 000,000,000,
or th e re a b o u ts ,
o f -92-day T r e a s '
u r y b i l l s t o be d a te d ' J u n e 30 and t o m a t u r e S e p t e m b e r 30, 1943»
w h i c h w e re o f f e r e d on J u n e 23, 1943, w e re o p en ed a t t h e F e d e r a l
R e s e r v e Banks on J u n e 2 8 .
snUrsdm .
)rox. 0|!r
a m
• H i
- 99
Low
-
Average
price
-
v a le n t rate.
p e r annum
99 .904 E q u i v a l e n t r a t e
p e r annum
99 ♦ 9 0 4 / Equ rival e n t r a t
p e r ■annum
cr
1
H ig h
•H
I m
m
m
- Range o f a c c e p t e d b i d s :
o
i—i
Ml
T o t a l a p p l i e d f o r - pi', 305 , 6 5 9
T otal accepted
$
i , 005 , 7 1 8
e n t e r e d on a f i r e d - p r i c e b a s
. ; in f u l l )
C7\
laccwf
The d e t a i l s o f t h i s , j,ss ue ’•<
a. r e
3/0
(84 p e r c e n t o f t h e amoun t b i d f o r a t t h e Ibw p r i c e was a c c e p t e d
F ed eral Reserve
B a n k > _________
Boston
New York
P hiladelphia
C leveland
Richmond
A tlanta
Chicago
S t . L ouis
M inneapolis
K a n sa s . C i t y
D allas
San F r a n c i s c o
TOTAL
T otal
A pplied f o r
24.563.000
856.456.000
35,632,000,
33.347.000
17.822.000
7,224,000.
156.333.000
49.489.000
7.420.000
21.060.000
5.795.000
90,518,000
$1,305,659,000
-oOo-
T otal
A ccepted
,
21 931,000
588.940.000
32.225.000
33.059.000
17 166.000
6.957.000
140.133.000
42.701.000
7.378.000
20.347.000
5.659.000
8 9 2 2 2 .0 0 0
.
.
$1,005,718,000
n m *
- 3 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 su b se q u e n t p u r c h a s e , and th e amount]
a c t u a l l y r e c e iv e d e i t h e r upon s a l e o r re d e m o tio n a t m a tu r it y d u rin g th e taxable
y e a r f o r w hich th e r e t u r n i s made, a s O rd in a ry g a in o r l o s s .
T re a s u ry D ep artm en t C ir c u la r No. 41B, a s am ended, and t h i s n o tic e , pre- 1
s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g o v ern th e c o n d itio n s o f t h e i r issue.
C opies o f th e c i r c u l a r may be o b ta in e d from any F e d e r a l R eserv e Bank o r Branch.
X lffl
-
2
-
R eserv e Banks and B ra n c h e s, fo llo w in g w hich p u b lic announcem ent w i l l be made by the
S e c r e t a r y o f th e T re a su ry o f th e am ount and o r i c e ra n g e o f a c c e p te d b i d s .
Those \
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T re a s u ry e x o r e s s ly r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any or |
a l l t e n d e r s , i n w hole o r i n p a r t , and h i s a c t i o n i n any such r e s p e c t s h a l l be final]
S u b je c t t o th e s e r e s e r v a t i o n s , te n d e r s f o r $ 100,000 o r l e s s from any one bidder at
9 9 .9 0 5 e n te r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Payment o f accepted
te n d e r s a t th e p r i c e s o f f e r e d m ust be made o r co m p lete d a t th e F e d e r a l Reserve Bank]
i n cash o r o th e r im m e d ia te ly a v a i l a b l e fu n d s on
Jialy 7, 1943________ •
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l n o t hav e any ex em p tio n , as such, ^
and l o s s from th e s a l e
o r o th e r d i s p o s i t i o n o f T re a s u ry b i l l s s h a l l n o t have any <
s p e c i a l tr e a tm e n t, a s s u c h , u n d e r F e d e r a l t a x A cts now o r h e r e a f t e r en ac ted .
The
b i l l s s h a l l be s u b je c t to 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 is e ta x e s , whether
F e d e r a l o r S t a t e , b u t s h a l l be exem pt 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 th 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 an y S t a t e , o r ap y o f th e p o s se ss io n s of
th e U n ite d S t a t e s , o r by any l o c a l ta x in g a u t h o r i t y .
F o r p u rp o s e s o f ta x a tio n the
amount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U nited States
s h a l l be c o n s id e r e d to
be
in te re s t.
Under S e c tio n s 42 and 117 (a ) ( l ) o f the
I n t e r n a l Revenue Code,
a s amended by S e c tio n 115 o f th e Revenue A ct o f 1941, the -j
am ount o f d is c o u n t a t w hich b i l l s i s s u e d h e re u n d e r a r e s o ld s h a l l n o t be considered
to a c c ru e u n t i l such b i l l s s h a l l b e s o ld , redeem ed o r o th e r w is e d isp o se d of, and
such b i l l s a r e e x c lu d e d from c o n s id e r a tio n a s c a p i t a l a s s e t s .
owner o f T re a s u ry b i l l s
A cco rd in g ly , the
( o t h e r th a n l i f e in s u r a n c e com panies) is s u e d hereunder
n eed in c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p ric e paid
TREASURY DEPARTMENT
W ashington
/
FOR RELEASE, MORNING NEWSPAPERS,
Wednesday. June
11 30. 19-43----------•
T tt
'/ '—..IT
The S e c r e ta r y o f th e Treasury, by t h i s p u b li c n o t i c e , i n v i t e s tenders
f o r $ 1 .0 0 0 .0 0 0 ,0 0 0 , o r t h e r e a b o u ts , o f
“ daY T re a s u ry b i l l s , to be issued j
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r pro
v id e d ,
T h e1b i l l s o f t h i s s e r i e s w i l l b e d a te d -----M z J U ~ i 2 4 2 ------------and wiIL
Oetober 7. 1943
m a tu re
in te re s t.
_> when t h e f a c e am ount w i l l be p a y a b le w ith o u t
They w i l l b e i s s u e d i n b e a r e r form o n ly , and i n d en o m in a tio n s o f $1,000,
j
$ 5 ,0 0 0 , $10,000', $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 ( m a t u r ity v a l u e ) .
T en d ers w i l l be r e c e iv e d a t F e d e r a l R eserv e Banks an d B ranches up to the j
c lo s in g h o u r, two o ’ c lo c k p . m ., E a s te r n War tim e ,
F r i d a y , , Jul ^ 2 , 1942-----------• 1
T en d ers w i l l n o t be r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n ;
Each tender j
m ust be f o r an even m u l tip l e o f $ 1 ,0 0 0 , and th e p r i c e o f f e r e d m u st be expressed
on th e b a s i s o f 1 0 0 , w ith n o t more th a n t h r e e d e c im a ls , e . g . , 9 9 .9 2 5 .
may n o t b e u s e d .
Fractions j
I t i s u rg e d t h a t te n d e r s b e made on- th e p r i n t e d form s and for- 1
w arded i n th e s p e c i a l e n v e lo p e s w hich v d .ll be s u p p lie d by F e d e r a l R eserve Banks
o r B ran ch es on a p p l i c a t i o n t h e r e f o r .
T enders w i l l be r e c e iv e d w ith o u t d e p o s it from in c o r p o r a te d banks and
)
t r u s t com panies and from r e s p o n s ib le and r e c o g n iz e d d e a l e r s i n in v e stm e n t securi- j
tie s .
T enders from o t h e r s m ust b e accom panied by paym ent o f 2 p e r c e n t tf. the face
am ount o f T re a s u ry b i l l s a p p lie d f o r , u n le s s th e te n d e r s a r e accom panied by an
e x p r e s s g u a ra n ty o f paym ent b y an in c o r p o r a te d bank o r t r u s t company.
Im m e d ia te ly a f t e r th e c l o s i n g h o u r , te n d e r s w i l l b e opened a t the F ed||
4
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS
Wednesday, June 3 0 , 19^3 .
' ;T h e - S e c r e ta r y o f J t h e T re a s u r y ,v b y 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 foi 4 ' | 1 , 000 , 000 ; 000 , a o r t h e r e a b o u t s 0f 9 2 day T re asury b i l l s ,
to 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 and f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r p r o v id e d .
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 J u l y 7 , 1 9 *1 3 , and
w i l l mature October 7» 19^*3> when t h e fade amount w i l l be
p a y a b le w ith o u t i n t e r e s t .
They w i l l be i s s u e d In b e a r e r
form only, and In denominations--Of '$1,000, $5,000, $10,000,
$1 0 0 , 000 , $ 500 , 000 ,- and $ 1 , 00 (1,0 0 0 ( m a t u r i t y v a l u e ) , . ,
*
Tenders w i l l b e received;' a t F e d e r a l Reserve Banks and
Branches up to 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
War*Time, F r id a y , J u l y 2, 19^3V ■ Tenders w i l l not be r e
c e i v e d a t t h e / T r e a s u r y Department,' Washington, Each -tender
must be f o r an even m u l t i p l e o f $ 1 , 000 , and the. 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 QQ, w ith not more
th a n t h r e e d e c im a ls, e, g t 1 99*925* F r a c t i o n s may not 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 forwarded in thV s p e c i a l envelopes which w i l l be
stfijhiied by F e d e r a l Reserve Banks or- Branches on a p p l i c a
tion th erefo r.
Tenders w i l l be- r e c e i v e d w ith 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 i n In v e s tm e n t s e c u r i t i e s , ^T ende rs from
'Others must be ^accompanied by payment of 2 p e r c e p t of t h e
f a c e amount of 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 the t e n d e r s
a r e accompanied by an e x p r e s s g u aran ty of paym ent,by an i n
c o r p o r a t e d bank or t r u s t company.
Immediately a f t e r t h e c l o s i n g hour, t e n d e r s w i l l be
opened a t the F e d e r a l Reserve Banks and Branches, f o l l o w in g
which p u b l i c announcement"w ill be made by t h e S e c r e t a r y of
t h e T re a s u r y o f th e amount and p r i c e range of a c c e p te 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 of t h e a c c e p ta 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 o f t h e T re a s u r y ex
p r e s s l y r e s e r v e s th e 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
(Over)
2
t e n d e r s In whole o r in p a r t , and h i s a c t i o n in any- such
r e s p e c t ’ s h a l l be f i n a l . S u b jec t t o t h e s e F®®?™aR ° 2 q ' q 0c
t e n d e r s f o r 110 0 ,0 0 0 or l e s s from any one b i d d e r a t 99.90 5
e n t e r e d on a f i x e d - p r i c e b a s i s w i l l be a c c e p te d in f u l l ,
Payment of a c c e p te 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
e *F e d e r a l Reserve
made or
o r completed
com pleted aaot th
ouc
T Bank
^ toinIi -zcash or
o th e r im m ediately a v a ila b le funds on. J u ly 7> 1?
I
The income d e r i v e d from Treasury b i l l s , whether i n t e r p s t o r s a i n from th e s a l e o r o t h e r d i s p o s i t i o n of the b i l l s ,
s h a l l n o t ' h a v e any exemption, as such, and
’
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 re a su r y b i l l s s h a l l not have
Iny s p e c i a l t r e a t m e n t , as such,, under F e d e r a l t a x Acts now
o r h e r e a f t e r e n a c te d . The b i l l s s h a l l e
whether
inhpr«itance s r l f t , *o r o t h e r e x c i s e t a x e s , whether
F e d e r a l o r S t a t e , ’b ut 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 In tfe re st
bv 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 th e United States,
o r bv ahv l o c a l t a x i n g a u t h o r i t y , , For. purposes of . ta x atio n
th e amount of d i s c o u n t a t which Treasury b i l l s a r e originally
s o ld by. th e U n ite d S t a t e s s h a l l be s?!?8, 1*®*®*
*®r n la
eat
Under S e c t io n s ^2 and 117 ( a ) ( 1 ) o f th e i n t e r n a l
Revenue Codey. a s amended by R a t i o n l ^ o f th e
o f 194-1, th e . amount o f d is c o u n t a t w h ich b i l l s , is s u e d here
under are s o ld s h a l l n o t be c o n s id e r e d to a ccr u e u n t i l such
b i l l s s h a l l be s o ld , redeem ed o r o th e r w is e a isfe o se d n f . and
su ch b i l l s are e x c lu d e d from ^ a l d e r a U o h a s c a ^ i t ^ l s se ts
A c c o r d in g ly , th e owner o f T reasu ry b i l l s (o th e r than
l i f e ' i n s u r a n c e com panies.) i s s u e d , h ereu n d er n eed in c lu d e in
h i s income t a x r e tu r n o n ly th e d i f f e r e n c e b etw een th e price
p a id f o r su ch b i l l s , w h eth er on o r i g i n a l is s u e ^ o r
qu en t p u r c h a se , and the- amount a c t u a l l y r e c ■
..
Year 8
on s a l e or red em p tion a t m a tu r ity d u r in g th e ta x a b le year
fo r. w h ic h th e r e tu r n i s made, as o r d in a r y g a in or l o s s .
T re asu ry Department C i r c u l a r No, 4-18, a s amended, andt h i s ' - n o t l c e , p r e s c r i b e t h e terms o f t h e T re a su r y b i Is and
o -o v e r n -th e -c o n d itio n s of t h e i r i s s u e . Copies of th e c l r - ' ■
c u l a r may be o b t a i n e d fro® any F e d e r a l Reserve Bank or 9
Branch. ■ . ®
•" '
TREASURY DEPARTMENT
Bureau o f I n t e r n a l Revenue
W ashington
FOB IMMEDIATE RELEASE,
Tuesd ay , June 29, 1943*
P re s s S e rv ic e
Only one more day rem ains f o r m o to ris ta t o o b ta in
th e F e d e ra l a u to u se ta x stam p and a f f i x i t to t h e i r
w in d s h ie ld s , Guy
Revenue warned to d a y .
T. H e lv e rin g , Com m issioner o f I n te r
5?he stam p, in th e denom ination
o f $5 . 00, w i l l ev id en ce payment o f th e t a x f o r th e f i s c a l
y e a r b eg in n in g J u ly 1 , 1943 and must be d is p la y e d on and
a f t e r t h a t date*
Auto u se t a x stam ps may be o b ta in e d a t a l l p o s to f f i c e s and a t o f f i c e s of c o l l e c t o r s o f i n t e r n a l revenue.
P o s to f f ic e s w i l l s e l l th e stam p o v e r t h e c o u n te r f o r cash
o n ly , w h ile c o l l e c t o r s o f i n t e r n a l rev en u e a r e au th o riz ed
t o a c c e p t c a sh , p o s to ffic © money o rd e rs and c e r t i f i e d
checks in paym ent. S in ce rev en u e stam ps have an i n t r i n
s i c v a lu e , u n c e r t i f i e d checks w i l l n o t be a c c e p te d in payment
The stam ps a r e numbered s e r i a l l y and sp a ce i s pro
v id ed on th e back f o r th e e n try o f th e make, model,
s e r i a l number and S ta te l ic e n s e number o f th e v eh icle*
The f a c e s id e i s gummed in o r d e r t h a t i t may be faste n ed
to th e w in d s h ie ld . In a f f i x i n g th e stamp i t i s recom
mended t h a t th e w in d sh ie ld be dampened r a t h e r th a n th e
a d h e siv e s id e o f th e stam p. Owners o f m otor v e h ic le s are
c a u tio n e d to make a r e c o r d o f th e s e r i a l number appearing
on th e stam p a s p ro o f o f p u rc h a se in th e e v e n t th e stamp
is lo s t.
M o to r is t s 1 a t t e n t i o n i s c a l l e d to th e f a c t t h a t the
u se t a x law has n o t been r e p e a le d and f a i l u r e t o purchase
and d is p la y th e new u se ta x stam p on v e h ic le s o p e ra tin g
on th e p u b lic highways a f t e r Ju ly . 1, 1943> w i l l su b je c t
th e v i o l a t o r s to se v e re p e n a l t i e s imposed by law .
TREASURY DEPARTMENT
Bureau o f I n t e r n a l Revenue
W ashington
FOR IMMEDIATE RELEASE,
T uesday, June 29, 1943*
P re s s S e rv ic e
3 7-
Only one more day rem ains f o r m o to r is ts t o o b ta in
th e F e d e ra l a u to u se ta x stam p and a f f i x i t to t h e i r
w in d s h ie ld s , Guy T. H e lv e rin g , Com m issioner o f I n te r n a l
Revenue^warned to d a y .
The stam p, in th e denom ination
o f | 5 . 00, w i l l ev id en ce payment o f th e t a x f o r th e f i s c a l
y e a r b eg in n in g J u ly 1, 1943. and must be d is p la y e d on and
a f t e r t h a t d a te .
Auto u se t a x stam ps may be o b ta in e d a t a l l p o s to f f i c e s and a t o f f i c e s of c o l l e c t o r s o f i n t e r n a l revenue.
P o s to f f ic e s w i l l s e l l th e stamp o v er th e c o u n te r f o r cash
o n ly , w h ile c o l l e c t o r s o f i n t e r n a l rev en u e a r e a u th o riz e d
t o a c c e p t ca sh , p o s t o f f i c e money o rd e rs and c e r t i f i e d
checks in paym ent. S in ce rev en u e stam ps have an i n t r i n
s i c v a lu e , u n c e r t i f i e d checks w i l l n o t be a c c e p te d in pay
ment .
The stam ps a r e numbered s e r i a l l y and sp a ce i s p ro
v id e d on th e back f o r th e e n try o f th e make, model,
s e r i a l number and S ta te lic e n s e number o f th e v e h ic le .
The f a c e s id e i s gummed i n o r d e r t h a t i t may be fa s te n e d
to th e w in d s h ie ld . In a f f i x i n g th e stamp i t i s recom
mended t h a t th e w in d sh ie ld be dampened r a t h e r th a n th e
a d h e siv e s id e o f th e stam p. Owners o f m otor v e h ic le s a re
c a u tio n e d to make a r e c o r d o f th e s e r i a l number ap p earin g
on th e stamp as p ro o f o f p u rc h a se in th e ev en t th e stamp
is lo s t.
M o to rists* a t t e n t i o n i s c a lle d to th e f a c t t h a t th e
u se t a x law has n o t been r e p e a le d and f a i l u r e t o purchase
and d is p la y th e new u se ta x ^ta:ffip'^oh^,,!rehi2!Q les o p e ra tin g
on th e p u b lic highways a f t e r ^ Jw ly*3», 1943, / w i l l s u b je c t
th e v i o l a t o r s to se v e re p e n a l t i e s ''imposed"’by law .
treasury department
B ureau o f I n t e r n a l Revenue
Washington
FOR IMMEDIATE RELEASE
T u esd a y / June 29, 19^ 3,
P re s s S e rv ic e
No. 37-29
Only one more day rem ains f o r m o to r is ts to o b ta in th e
F e d e ra l au to u se ta x stamp and a f f i x i t to t h e i r wind
s h i e l d s , Guy T. H e lv e rin g , Com m issioner o f I n t e r n a l Revenue,
warned to d a y .
The stam p, in th e d en o m in atio n o f # 5 .0 0 , w ill
ev id en ce payment o f th e ta x f o r th e f i s c a l y e a r b e g in n in g
J u ly 1 , 191+3, and must be a isp Ia y e d on anfl a f t e r
and a t o f f ic e s * ^ * c o l l e c t o r s o f ?bJ a ln e ^ a t a11 p o s to f f ic e s
o ffic e s w m
, 1J*c ®t:ors o f I n t e r n a l re v e n u e . P o s tw h ile c o l l e c t o r s o f ^ i n t e r n a l T ® r t h ® o o u n te r f o r ca sh o n ly ,
c e p t ent.
c a sh , S iPnOc eS tropfvf pl cnrnm- o ™ f o r ud eI rs
r s UL
eh t0 a 0in'
paym
ana.f r cc e4r tt i^f iLe diZ checks
C e rtifie d o
& r^
!
i
f
ua "
on th e back f o r th*> e n tr v r o f
and spaoe l s p ro v id e d
and S ta in
te oUr dc ee rL ^that*
n u m i Sf e-^ov
o f t^h e v e' h i c i_•
e ^ ^ The
h h fa
? ecreU s1 id
, 2Un,ber
gummea
e is
In a f f i x i n g th e stamo i t u
w in d s h ie ld .
be dampened r a t h e r th an th e a d h e s i v e ^ s l d e ^ f th e " J n d s h le ld
Owners o f m otor v e h ic le s
a S S ;? !? * + o f the stam P*
th e s e r i a l number a p p e a r in g o n th e
make a re o o rd o f
ch ase in th e e v e n t th e s ta f p i s ? o s t ! P 38 P r° ° f ° f p u r~
° 4 d is p la y th e new use
ra°: “ •* “ •
and
™ ana fJ ilure to p u rc h a se
th e p u b lic highways a f t e r June ?0
°P®r a t l n S on
v i o l a t o r s to s e v e re p e n a l t i e s ilp o s e d ^ b y law! SUbJeo1: the
3f 3
POE IMMEDIATE RELEASE,
The Bureau o f Customs announced today prelim inary fig u res showing the quan
t i t ie s of coffee authorized for entry fo r consumption under the quotas for the
12 months commencing October 1, 1942* provided for in the Inter—American Coffee
Agreement* proclaimed hy the President on April 15* 1941* as follow s!
Country o f
Production
Signatory Countries:
B razil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
f•
Authorized fo r entry
5 Quota Quantity
t (Pounds) X/ __________for consiroMpfl__________ _
§♦
An of__(Date)___ l___ (Pounds) ______
2,172,359,753
735,840,277
46*718*023.
18*692,451
25,752,947
35,041,235
140,776,585
124,978,598
64,236,136
4,278,467
111,292,561
45,818,819
5,839,588
90,021,490
Non-signatory Countries:
)
B r itish Shrpire, except
)
Aden and Canada
)
Kingdom of the Netherlands)
and i t s p ossession s
> 75,969,017
Aden* Yemen* and Saudi
)
Arabia
)
Other countries not signs**)
to r ie s of the In ter)
American Coffee Agree- )
ment
)
Qpotas revised as of March 5* 1943*
-oO o-
June 19, 1943
H
H
a
a
a
a
a
n
a
a
it
it
a
a
498,127,744
432,726,299
28,882,476
9,932,743
17,280,127
16,708,607
99,250,423
67,065,659
52,782,606
2,855,723
52,132,802
20,155,351
217,797
58,831,522
31,311, 398
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
W ednesday. Ju n e 30. 1943.
P r e s s S e r v ic e
No. 37-30
The B ureau o f Customs- announced to d a y p r e lim in a r y f i g u r e s show ing th 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 tr y f o r co n su m p tio n u n d e r th e q u o ta s
f o r th e 12 m onths commencing O cto b er 1 ,. 1942, p r o v id e d f o r in th e I n t e r - '
A m erican C o ffee Agreement* p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941,
as f o llo w s ;
C o untry of
P ro d u c tio n
S ig n a to ry C o u n tr ie s :
B ra z il
C olom bia
C o s ta R ic a
Cuba
D om inican R e p u b lic
E c u a d o r.
El S a lv a d o r
G uatem ala
H a iti
H onduras
Mexico
N ic a ra g u a
P e ru
V en ezu ela
•
;
:
—:
*
Q uota Q u a n tity :
(P ounds) lj i^
: As o f
2 ,1 7 2 ,3 5 9 ,7 5 3
7 3 5 ,8 4 0 ,2 7 7
4 6 ,7 1 8 ,0 3 1
1 6 ,6 9 2 ,4 5 1
2 5 ,7 5 2 ,9 4 7
3 5 ,0 4 1 ,2 3 5
1 4 0 ,7 7 6 ,5 8 5
1 2 4 ,9 7 8 ,5 9 8
5 4 ,2 3 6 ,1 3 6
4 ,2 7 8 ,4 6 7
1 1 1 ,2 9 2 ,6 5 1
4 5 ,8 1 8 ,8 1 9
5 ,8 3 9 ,5 8 8
9 0 ,0 2 1 ,4 9 0
N o n -s ig n a to iy C o u n tr ie s :
)
B r i t i s h Em pire, e x c e p t
)
Aden and C anada
)
Kingdom o f th e N e th e r la n d s )
and i t s p o s s e s s io n s
) 7 5 ,9 6 9 ,0 1 7
Aden, Yemen, and S au d i
)
A ra b ia
)
O th e r c o u n t r i e s n o t s ig n a - )
t o f i e s o f th e I n te r ~
)
A m erican C o ffee A g ree- )
ment
)
1/
Q uotas r e v is e d a s o f March 5 , 1943 ,
A u th o riz e d f o r e n tr y
f o r co n su m p tio n
(D ate)
j
(P ounds)
Ju n e 19, 1943
ti
it
ti
ii
ii
it
ii
ii
n
it
ii
it
it
4 9 8 ,1 2 7 ,7 4 4
4 3 2 ,7 2 6 ,2 9 9
2 8 ,8 8 2 ,4 7 6
" 9 ,9 3 2 ,7 4 3
1 7 ,2 8 0 ,1 2 7
1 6 ,7 0 8 ,6 0 7
9 9 ,2 5 0 ,4 2 3
6 7 ,0 6 5 ,6 5 9
5 2 ,7 8 2 ,6 0 6
. 2 ,8 5 5 ,7 2 3
5 2 ,1 3 2 ,8 0 2
2 0 ,1 5 5 ,3 5 1
2 1 7 ,7 9 7
5 8 ,8 3 1 ,5 2 2
3 1 ,3 1 1 ,3 9 8
A dditional compensation may be paid a t the same overtime rates
to a l l employees in a particular plant for the actual scheduled hours
■worked in excess of the regular 40-hour "work ■week as i s paid to the
highest hourly paid employee, whose rate is subject to the Fair labor
Standards Act, i f th eir compensation for the. 40-hour work week i s equal
to or le s s than th at of such high est hourly paid employee.
In the app lication o f th is p rin cip le, the high est p articip atin g
pay le v e l in d ir ec t lin e of supervision and the minimum ad d ition al com
pensation necessary for th at le v e l sh a ll be determined t o the sa tisfa c
tio n of the Commissioner. The amount allowable to the highest rated
hourly employee w ill then be progressively reduced for the several
intervening pay le v e ls in such manner that each succeeding higher le v e l
receives a proportionately le sse r amount, u n til the minimum amount a l
lowable for the highest p articip atin g pay le v e l as previously determined
i s reached.
This plan may be follow ed with respect to a l l salaried p osition s
between the highest hourly rated employee receivin g compensation at
overtime rates and the high est salaried p o sitio n for which overtime
compensation is required.
The le v e l of supervision a t which the minimum add ition al compensa
tion i s to be allowed w ill depend upon the circumstances prevailing in
each p articu lar case. Therefore, in order to expedite consideration
of th eir problem, employers, in subm itting applications for approval
to make overtime adjustments, should include complete inform ation,
covering p a rticu la rly the follow ing j The hours of the extended work
week) the hours o f the previous work week) the rates of pay of the
wage and salaried employees under the ju risd ictio n of the National
War Labor Board) the amounts and rates of overtime presently being
paid to those groups as w ell as to the groups under the ju risd ictio n
of the Commissioner) the number of employees for whom payments are
proposed, together with th e ir rates' of pay) a d escrip tion of the
several types or le v e ls of supervision) a su ffic ie n tly clear descrip
tio n of the job c la ssific a tio n s and p osition s o f those required to
work the s ame or more hours than the wage earners under the extended
w>rk week and for whom overtime compensation is required) the top
le v e l of supervision at which the minimum add ition al compensation is
required) the amount o f add ition al compensation deemed necessary in
the top le v e l o f supervision so determined; and th e b asis upon which
both the top le v e l of supervision and the amount of additional com
pensation to be paid that le v e l have been determined.
/
Approved i
r
TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington
Press Service
FOR IMMEDIATE RELEASE,
No* 3 7 - 3/
*I * ^ ^
The Commissioner o f Internal Revenue, Guy T. H elvering, today isaxed
a statem ent fo r the guidance of employers who find i t necessary to pay
th eir salaried employees ad d ition al compensation to maintain productive
e ffic ie n c y on account of the extension of the normal -work week.
The Commissioners ju risd ictio n extends only to sa la ried employees
receivin g more than $5,000 a year and to executive, adm inistrative and
p rofession al employees receivin g le s s than $5,000 a year ■who are not
represented by a recognized labor organization* In order to come nothin
the Commissioner1s ju r isd ic tio n , an executive employee must receive more
than $30 a -week, and an adm inistrative or p rofession al employee must re
ceive more than $200 a month*
Due to the extension of the work meek, employers are required under
the provisions of the Fair Labor Standards Act to pay th eir nonexempt
-wage earners and others of th eir salaried personnel coming w ith in the
ju risd ictio n of the Fair Labor Standards Act add ition al compensation at
time and a h a lf for a l l hours -worked in excess of 40 in any one calendar
week. Employers are not le g a lly required to compensate the supervisory
personnel on the same basis as the wage earners. However, i t is custom
ary for employers to maintain reasonable pay d iffe r e n tia ls between the
wage earners and th eir supervisors and between the several le v e ls of
supervision* Payment for overtime to the wage earners without any ad
d itio n a l compensation to the salaried personnel in many cases resu lts
in the wage earners receivin g more to ta l compensation for a given period
than th e ir immediate supervisors and in some cases more than the second
and third le v e ls of su pervision.
In order to c la r ify the p o sitio n which w ill be taken in th is matter,
the Commissioner has issued in stru ction s to the regional o ffic e s of the
Salary S ta b iliza tio n Unit as to the methods under which payments of ad
d itio n a l compensation to salaried personnel may be determined. Under
these in stru ctio n s, the maximum amounts which w ill be allowed are such
amounts as are necessary to keep the minimum d iffe r e n tia ls between the
in terrelated job c la ssific a tio n s required for the maintenance of pro
ductive efficien cy * The Commissioner stated th at no s e t rule may be
establish ed for determining such amounts, because of the variations of
d iffe r e n tia ls between wage and salary le v e ls w ithin plants and indus
t r ie s . However, the amounts allowed w ill be proportionately le s s in
the higher le v e ls . Approval i s required in a l l cases except Tihere the
employer had a regu larly establish ed overtime payment plan in e ffe ct
on October 3, 1942, and neither the plan, the r a te s, nor th e hours
have been changed. The maximum lim ita tio n s w ithin which payments may
be made tiq.11 be determined on the follow ing b a s is.
TREASURY DEPARTMENT
B ureau o f I n t e r n a l Revenue
W ashington
FOR IMMEDIATE RELEASE,
T hursday, J u ly 1 , 19*13.
P re s s S e rv ic e
No. 37-31
The Com m issioner o f I n t e r n a l Revenue, Guy T, H e lv e rin g ,
to d ay is s u e d a s ta te m e n t f o r th e guidanoe o f em ployers who
f in d i t n e c e s s a ry to pay t h e i r s a l a r i e d em ployees a d d itio n a l
com pensation to m a in ta in p ro d u c tiv e e f f ic ie n c y on acco u n t o f
th e e x te n s io n o f th e norm al work week.
The C om m issioner’ s J u r i s d i c t i o n ex ten d s only to s a l a r
ie d em ployees r e c e iv in g more th a n $5,000 a y e a r and to ex
e c u tiv e , a d m in is tr a tiv e and p r o f e s s io n a l em ployees r e c e iv in g
l e s s th a n $5,000 a y e a r who a re n o t r e p r e s e n te d by a re c o g
n iz e d la b o r o r g a n i z a t i o n , In o rd e r to come w ith in th e Com
m is s io n e r s J u r i s d i c t i o n , an e x e c u tiv e employee must r e c e iv e
more th a n $30 & week, and an a d m in is tr a tiv e o r p r o f e s s io n a l
employee must r e c e iv e more th a n $200 a month.
Due to th e e x te n s io n o f th e work week, em ployers a re r e
q u ire d u n d er th e p r o v is io n s o f th e F a i r Labor S ta n d a rd s Act
to pay t h e i r nonexempt wage e a rn e rs and o th e r s o f t h e i r s a l
a r ie d p e rso n n e l coming w ith in th e J u r i s d i c t i o n o f th e F a ir
Labor S ta n d a rd s Act a d d i tio n a l com pensation a t tim e and a
h a l f f o r a l l h o u rs worked in ex c ess o f *1Q in any one c a le n d a r
week, em ployers a r e n o t l e g a l l y r e q u ir e d to com pensate th e
s u p e rv is o ry p e rs o n n e l on th e same b a s is as th e wage e a r n e r s ,
how ever, i t i s custom ary f o r em ployers to m a in ta in re a s o n a b le
pay d i f f e r e n t i a l s betw een th e wage e a rn e rs and t h e i r s u p e r
v is o r s and betw een th e s e v e r a l le v e l s o f s u p e r v is io n . Pay
ment f o r o v ertim e to th e wage ear n e r s w ith o u t any a d d i tio n a l
com pensation to th e s a l a r i e d p e rs o n n e l in many c a se s r e s u l t s
in th e wage e a r n e r s r e c e iv in g more t o t a l com pensation f o r a
g iv en p e rio d th an t h e i r im m ediate s u p e r v is o r s and in some
c a se s more th an th e second and t h i r d l e v e ls o f s u p e r v is io n .
In o rd e r to c l a r i f y th e p o s it io n w hich w i l l be ta k en in
t h i s m a tte r , th e Com m issioner has is s u e d i n s t r u c t i o n s to th e
reg io n al, o f f i c e s o f th e S a la ry S t a b i l i z a t i o n U n it as to th e
methods under w hich paym ents of a d d i tio n a l com pensation to
s a l a r i e d p e rs o n n e l may be d e te rm in e d . Under th e s e i n s t r u c
t i o n s , th e maximum amounts w hich w i l l be a llo w ed a r e such
amounts as a re n e c e s s a ry tc keep th e minimum d i f f e r e n t i a l s
« p _
betw een th e i n t e r r e l a t e d jo b c l a s s i f i c a t i o n s r e q u ir e d f o r th e
m aintenance o f p ro d u c tiv e e f f i c i e n c y . The Commissioner s t a t e d
t h a t nq s e t r u le may be e s ta b lis h e d f o r d e te rm in in g such
am ounts, b ecau se o f th e v a r i a t i o n s o f d i f f e r e n t i a l s betw een
wage and s a la r y l e v e l s w ith in p la n ts and i n d u s t r i e s . Howe v e r, th e amounts allo w ed w i l l be p r o p o r tio n a te ly l e s s in th e
h ig h e r levels*. A pproval i s r e q u ir e d in a l l c a se s ex cep t
where th e em ployer had a r e g u la r ly e s ta b li s h e d o v ertim e pay
ment p la n in e f f e c t on O cto ber 3* 19^2, and n e i t h e r th e p la n ,
th e r a t e s , n o r th e h o u rs have been changed. The maximum lim
i t a t i o n s w ith in w hich paym ents may be made w i l l be d eterm in ed
on th e fo llo w in g b a s is ;
A d d itio n a l com pensation may be p a id a t th e same o v ertim e
r a t e s to a l l em ployees in a p a r t i c u l a r p la n t f o r th e a c tu a l
sc h ed u le d ho u rs worked in ex c ess o f th e r e g u la r ^G-hour work
week as i s p aid to th e h ig h e s t h o u rly p a id em ployee, whose
r a t e is s u b je c t to th e F a ir Labor S ta n d a rd s A ct, I f t h e i r
com pensation f o r the- LO-hour work week i s e q u a l to o r l e s s
th a n th a t o f such h ig h e s t h o u rly p a id em ployee.
In th e a p p l i c a t i o n o f t h i s p r i n c i p l e , th e h ig h e s t p a r
t i c i p a t i n g pay l e v e l in d i r e c t l i n e o f s u p e rv is io n and th e
mininum a d d i tio n a l com pensation n e c e s s a ry f o r t h a t le v e l s h a ll
be d eterm in ed to th e s a t i s f a c t i o n o f th e Com m issioner, The
amount a llo w a b le to th e h ig h e s t r a te d h o u rly employee w i l l
th e n be p r o g r e s s iv e ly red u ce d f o r th e s e v e r a l I n te r v e n in g pay
l e v e l s in such manner th a t each su c c e e d in g h ig h e r le v e l r e
c e iv e s a p r o p o r tio n a te ly l e s s e r amount, u n t i l th e minimum
amount a llo w a b le f o r th e h ig h e s t p a r t i c i p a t i n g pay le v e l as
p r e v io u s ly d eterm in ed i s re a c h e d ,
T h is p la n may be fo llo w e d w ith r e s p e c t to a l l s a l a r i e d
p o s it io n s betw een th e h ig h e s t h o u rly r a te d employee r e c e iv in g
com pensation a t o v ertim e r a t e s and th e h ig h e s t s a l a r i e d p o s i
t i o n f o r w hich o v ertim e com pensation i s r e q u ir e d ,
The le v e l o f s u p e rv is io n a t w hich th e minimum a d d itio n a l
com pensation i s to be allo w ed w i l l depend upon th e circu m
s ta n c e s p r e v a i lin g in each p a r t i c u l a r c a s e , T h e re fo re , in
o r d e r to e x p e d ite c o n s id e r a tio n o f t h e i r problem , em ployers,
in s u b m ittin g a p p l ic a tio n s f o r ap p ro v a l to make o v ertim e ad
ju s tm e n ts , sh o u ld in c lu d e com plete in fo rm atio n ^ c o v e rin g p a r
t i c u l a r l y th e f o llo w in g ; The h o u rs o f th e ex ten d ed work
week; th e hours o f th e p re v io u s work week; th e r a t e s p f pay
o f th e wage and s a l a r i e d em ployees u n d er th e j u r i s d i c t i o n o f
th e N a tio n a l War Labor B oard; th e amounts and r a t e s o f o v e r' tim e p r e s e n tly b e in g p a id to th o se groups as w e ll a s to th e
groups under th e j u r i s d i c t i o n o f th e Com m issioner; th e num
b e r o f em ployees f o r whom paym ents a r e p ro p o sed , to g e th e r
w ith t h e i r r a t e s o f pay; a d e s c r ip tio n o f th e s e v e r a l ty p e s
- 3 -
o r le v e ls o f s u p e rv is io n ; a s u f f i c i e n t l y c l e a r d e s c r ip tio n
o f th e job c l a s s i f i c a t i o n s and p o s it io n s o f th o se r e q u ir e d
to work th e same o r more ho u rs th an th e wage e a rn e rs un d er
th e extended work week and f o r whom o v ertim e com pensation is
r e q u ir e d ; th e to p l e v e l o f s u p e rv is io n a t which th e minimum
a d d i tio n a l com pensation i s r e q u ir e d ; th e amount of a d d i tio n a l
com pensation deemed n e c e s s a ry in th e to p l e v e l o f s u p e rv is io n
so d eterm in ed ; and th e b a s is upon w hich b o th th e to p le v e l
o f s u p e rv is io n and th e amount o f a d d i tio n a l com pensation to
be p aid th a t l e v e l have been determ ined*
*^oQo~
FOB MEDIATE HH&EASE
Press Service
The Secretary of the Treasury# Henry Korgomthan# Jr*, sad the
Charge dfAf£aires of Cuba# Dr* Jose T* Barca# today extended fo r
two years beyond June 30# 1943# the agreement under idkich the
Government of the United S tates undertakes to s e ll gold to the
Government of the Bepublie of Cuba* The agreement provides th a t
payment may be made w ithin one hundred and twenty days a fte r
delivery of the gold# provided th a t the unpaid-for amount of gold
sh a ll not a t any time exceed $ 5 ,0 0 0 , GOO♦
The agreement which was extended' today evidences the close
cooperation th at ex ists between the Treasuries of the Bepubllc of
Cuba and the tfciited States# and w ill enable the Cuban Treasury to
carry out operations designed to sta b iliz e the Cuban peso-United
S tates d o llar ra te of exchange*
The agreement has been in operation since July 1942 and has
proved to be very effective*.
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Press Service
No. 3 l ~ 3 ^
The Secretary o f the Treasury, Henry Morgenthau, J r ., and the
Charge d*A ffaires o f Cuba, Dr. Jose T. Baron, today extended for
two years beyond June 30, X9A3$ the agreement under which the
Government o f the United S tates undertakes to s e ll gold to the
Government o f the Republic o f Cuba. The agreement provides that
payment may be made w ithin one hundred and twenty days a fte r
d elivery of the gold, provided th at the unpaid-for amount of gold
sh a ll not a t any time exceed $ 5 ,OCX),000*
The agreement which was extended today evidences the close
cooperation that e x is ts between the Treasuries of the Republic of
Cuba and the United S ta te s, and w ill enable the Cuban Treasury to
carry out operations designed to s ta b iliz e the Cuban peso—
United
States d o lla r rate o f exchange#
The agreement has been in operation sin ce July 1942 and has
proved to be very e ffectiv e#
MR. SCHWARZ’S OFFICE
FROM:
to
:
...._Tke...S.©GX.ft.t£iry.
H arry W hite say s t h a t th e s e
announcem ents have been c le a re d
w ith th e L egal d iv is io n and the
A m bassadors.
%
I asked him fo r
your c le a r a n c e and he req u ested
we subm it th e s t o r i e s .
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A /U u q
.
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TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T hursday, J u ly 1, 19^3*
F re e s S e rv ic e
No. 37~32
The S e c r e ta r y o f th e T re a su ry , Henry M orgenthau, J r * ,
and th e Charge d ’A f f a ir e s o f Cuba, Dr* Jo se T* Baron, t o
day ex ten d ed f o r two y e a rs beyond June J>0, 19^3, th e a g ree
ment u nd er w hich th e Government o f th e U n ited S ta te s under
ta k e s to s e l l g o ld to th e Government o f th e R ep u b lic o f
Cuba,
The agreem ent p ro v id e s t h a t payment may be made
w ith in one hundred and, tw enty days a f t e r d e liv e r y o f th e
g o ld , p ro v id ed th a t th e u n p a id -f o r amount o f g o ld s h a ll
n o t a t any tim e exceed $5 #000, 000f
The agreem ent w hich was extended today ev id en ces th e
c lo s e c o o p e ra tio n t h a t e x i s t s betw een th e T re a s u r ie s of
th e R ep u b lic o f Cuba and th e U n ited S ta te s , and w i l l en
a b le th e Cuban T re a su ry to c a rry o u t o p e r a tio n s d esig n ed
to s t a b i l i z e th e Cuban p e so -U n ite d S ta te s d o l l a r r a t e o f
exchange-,
The agreem ent h as been in o p e r a tio n sin c e J u ly , 19^2,
and has proved tc be v ery e f f e c t i v e .
TREASURE DEPARTMENT
Washington
T O H D I H 1 RELEASE,
Press Service
Ho.
The following jo in t statement Is made by Secretary Morgenthau
and |y 0. E* Alfaro, Ambassador of the Republic of Ecuador!
The S tabilisation Agreement of 1942 between the United
States and Ecuador, under which the United States S tabilizetio n Fund undertakes to purchase Ecuadoran sucres to the
amount of $5 m illion fo r the purpose of stab ilizin g the U.S.
dollazvEcuadorsn sucre ra te , has been extended today fo r a
period of one year beyond June 30, 1943# The Agreement also
provides fo r periodic conferences among representatives of
the two Treasuries*
The extension of the 1942 Agreement is in accord with
the policy of the Ecuadoran and the United States Treasuries
of maintaining the s ta b ility of the ra te of exchange between
the currencies of the two countries* Xn so doing, the founda
tion fo r stable economic and financial relatio n s between
Ecuador and the United States is maintained*
is/ co n c re te
d« is tr^ io n f£ what Jis m e^t by
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wheh/force*
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The extension of th is Agreement was signed for Ecuador
by Mr* C* 1* Alfaro, Ambassador of the Republic of Ecuador*
Hb\ji) I
I ll
TEEASUHT DIPAETMI3ST
Washington
|E ||
FOE BMSSIATl EELEASE
Press Service
y j
,
Ro*
3
7 -
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■
I '^ V t^ f e s
Wmi7
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I
the following Jo ist statement is made by Secretary Morgenthau
and I f C* I* Alfaro, Ambassador of the Republic of Ecuador*
The S tab ilisatio n Agreement of 1942 between the United
States and Ecuador, under %fcich the United States Stabiliza
tion Fund undertakes to purchase Ecuadoran sucres to the
amount of |5 million fo r the purpose of stab ilizin g the U*8*
dollar-Ecuadoran sucre ra te , has been extended today fo r a
period of one year beyond June 30, 1943* The Agreement also
provides for periodic conferences among representatives of
the two Treasuries*
The extension of the 1942 Agreement is in accord with
the policy of the Ecuadoran and the United States Treasuries
of maintaining the s ta b ility of the ra te of exchange between
the currencies of the two countries* Xn so doing, the founda
tion for stable economic and financial relations between
Ecuador and the United States is maintained*
The extension of th is Agreement was signed for Ecuador
ly Mr* C* I* Alfaro, Ambassador of the Republic of Ecuador*
&SSP:
EBrennerJlhb
6/10/43
s i i i i ataaaiagfisaa
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T h u rsd ay » J u ly 1, iq*TS.
P re s s S e rv ic e
N o,
3 7 -3 3
The fo llo w in g J o in t s ta te m e n t i s made by S e c re ta ry
M orgenthau and by C, E. A lfa ro , Ambassador of th e Repub
l i c of E cuadorr
p u rch ase E cuadoran su c re s to th e amount o f* !* ^
o^Xi i0 n ^:f0r the Pu r Pdse of s t a b i l i z i n g th e U nited
S ta te s d o lla r-E c u a d o ra n su c re r a t e , has been exten d ed today f o r a p e r io d of one y e a r beyond
June JO, 19^3* The Agreement a ls o p ro v id e s f o r
p e r io d ic c o n fe re n c e s attohg r e p r e s e n ta ti v e s o f
th e two T r e a s u r ie s *
The e x te n s io n o f th e 19^-2 Agreement i s in
ac co rd w ith th e p o lic y o f th e Ecuadoran and th e
U n ited S ta te s T r e a s u r ie s o f m a in ta in in g th e s t a
b i l i t y of th e r a t e o f exchange betw een th e c u r
r e n c ie s o f th e two c o u n trie s * In so d oing, th e
fo u n d a tio n f o r s t a b l e economic and f i n a n c i a l
r e l a t i o n s betw een Ecuador and th e U n ite d S ta te s
i s m ain tain ed *
The e x te n s io n o f t h i s Agreement was sig n ed
f o r E cuador by H r, C. E. Alfar*o. ArnVifl Ahaa
th e R e p u b lic o f Ecuador*
Washington
FOR m m iM B KflUBASE
Press Service
Ho*
The following jo in t statement is made ty Secretary Morgeathau
and by Thor Thors, M inister of Iceland*
The S tabilization Agreement of 194% between the
Halted States and Iceland, coder which the Halted States
S tab ilisatio n Fend undertakes to purchase Icelandic
krona to the amount of #2 m illion, fo r th e purpose of
sta b ilisin g the Baited States dollan-Icelandic krona
ra te of exchange, has been eat ended today for a period
of am® year beyond June 30, 1943* The Agreement also
provides for periodic conferences among representatives
of the two countries*
The extension of the 1942 Agreement is in accord
with the policy of the Icelandic Ministry of Finance
and the United States Treasury of maintaining the
s ta b ility of the ra te of exchange between the currencies
of the two countries* In so doing, the foundation for
stable economic and financial relatio n s between Iceland
and the United States is maintained*
The extension of th is Agreement m s signed fo r
Icelan d by Sr* Thor T hors, M in ister o f Iceland*
j
1*1'
^
y
tmmm tmmmm
f e s h in g t o a
m© follow ing J o in t g t s t a s s t i s «ed» I f
Bmmt&j Wm&m&m
and tjr Thor m ors, Minister of Iceland*
Tbs
&&remm,t o f !§&%» M m * th e
H alted S ta te s in i XMUtad* w d e r vfelch mm f e lte d S ta te s
S ta M liM tlo s Wwzd w ieartakes to parehaiie ie e la M ie
t e m to th e M
i o f <2 ttl3JUUatt» f o r th e p i rpvm o f
s ta td lls la g th® f e lte d S ta te s doH ar^X eelaadic krona
r a te o f exchange, has t e n ta n M I todsjr fo r a p eriod
o f oaa jrear bsyosai t a t s 30, 1943* th e
a la s
provides fo r p e rio d ic conferences anong re p re s a o ta tire s
o f th e ts® co u n tries*
m e m&miiim o f th e 1942
i s in accord
w ith th e f e l l e r o f tb s XesSUoadie S ia istsa r o f fla a a e e
a$d th e f e lte d S ta te s Trwmwp o f sala&aritalag th e
S ta M W y o f th e r a te o f exdamg© M im n th e
o f tb s tao eoiasiries;* In so d o in g , tb s tak feriA sn fo r
S tah l# ssoomssie and fin a n c ia l r e la tio n s b i t e ® Icelan d
and th e f e lte d S ta te s i s M O atalned*
tb s extension o f th is
tar Ip.* Thor Thor®, s i t # #
tmlmd
m s signed, f o r
o f Zmlm&+
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE
T hursday, J u ly 1 , 1943-,
P re s s S e rv ic e
No, 37-3^
The fo llo w in g j o i n t sta te m e n t i s made by S e c r e ta r y
M orgenthau and by Thor T h o rs, M in is te r o f I c e la n d :
The S t a b i l i z a t i o n Agreement o f 19^2 b eHn l t e d state8 and I c e la n d , u n d er
which th e U n ited S ta te s S t a b i l i z a t i o n Fund
u n d e rta k e s to p u rch ase I c e la n d ic k ro n a to th e
amount o f $2 m illio n , f o r th e p u rp o se of
s t a b i l i z i n g th e U n ite d S ta te s d o l l a r - I c e l a n d l c
kro n a r a t e o f exchange, has been ex ten d ed t o loll?
p,Tr io d o f one y e a r beyond June 30,
I9 j3 * The Agreement a ls o p ro v id e s f o r p e r
io d ic c o n fe re n c e s among r e p r e s e n t a t i v e s o f th e
two c o u n t r i e s .
The e x te n s io n o f th e 19^-2 Agreement i s in
0 f th e I o e la n d i ° M in is try
inane© and th e U n ited S ta te s T re a su ry o f
m a in ta in in g th e s t a b i l i t y o f th e r a t e of ex
change betw een th e c u r r e n c ie s o f th e two counl 6® * , 1" so d o in g , th e fo u n d a tio n f o r s ta b le
eoonomlc and f i n a n c i a l r e l a t i o n s betw een
and and th e U n ited S ta te s i s m ain ta in ed *
Tile e x te n s io n o f t h i s Agreement was sig n e d
f o r I c e la n d by Mr, Thor T hors, M in is te r o f
I c e la n d ,
*
-0 O 0
3
"Mr. G raves has done rem ark ab le work in a l l o f h is
v a r ie d T re a su ry t a s k s , " s a id S e c re ta ry M orgenthau.
"Given some o f o u r most d i f f i c u l t a d m in is tr a tiv e
a ssig n m e n ts, o f which th e c r e a tio n o f th e War S avings S ta f f
was o n ly one, he b ro u g h t to them a l l a g en iu s f o r o rg a n iz a tio n
and a d m in is tr a tio n w hich p ro d u ced th e most p ra is e w o rth y
re s u lts ,
"In th e Bureau o f I n te r n a l Revenue, th e war and the
new method o f c o l le c tin g income ta x e s on a p ay -as-y o u -g o
b a s is have bro u g h t » o¥ o
\Aiinirifegnc i i i i b i
ii,a t j10dm 1 .. ftp ........ ...... iWirrrfrmnn > ^ fre a t new problem s of
a d m in is tr a tio n ifowpp "agiiem m .. I am su re t h a t in h is c a p a c ity
o f A s s is ta n t Com m issioner, Mr . G raves w i l l c o n tr ib u te much
to th e s o lu tio n of th e s e p ro b le m s."
,
7*5
Mp. G raves and Mr. Cann were sworn in a t - a ceremony in
th e o f f i c e o f Commissioner of I n t e r n a l Revenue H e lv e rin g at
noon,
Mr. Cann, l i k e Mr. G raves, has g iv e n many y e a rs to
th e Government s e r v ic e , A r e s id e n t o f A tla n ta , G eo rg ia, he
was a p p o in te d a t r a i n e e a u d ito r w ith o u t com pensation
on J a n u a ry 1, 1924, and became a ju n io r a u d ito r in th e
Bureau o f I n t e r n a l Revenue on Ja n u a ry 1 , 1925.
A few months l a t e r he was t r a n s f e r r e d to th e I n te r n a l
Revenue F ie ld S e rv ic e in A tla n ta . He s e r r e d in p r o g re s s iv e ly
more r e s p o n s ib le p o s ts in A tla n ta , W ashington, L0s Angeles
and New York, and was a p p o in te d A s s is ta n t to th e Commissioner
o f I n te r n a l Revenue on Septem ber 9, 1941.
Ca^n is a W0r l d War v e te r a n and w ears th e P u rp le
H ea rt d e c o r a tio n . He saw a c tiv e s e r v ic e in th e A .E .F .
from Septem ber, 1917, to March, 1919, as s e rg e a n t in th e
Tank C orps.
D esp ite th e huge s iz e of th e jo b done by th e War
S avings S t a f f — th e l a r g e s t s e l l i n g job in th e h i s t o r y of
th e w o rld — i t s p a id f o rc e a t no tim e exceeded 1,200
p e rso n s f o r th e e n t i r e c o u n try , s te n o g ra p h e rs and t y p i s t s
in c lu d e d .
War S av in g s Bonds t o t a l i n g n e a r ly $18 b i l l i o n s were
s o ld u n d er Mr. G rav es1 s u p e r v is io n . They were d i s t r i b u t e d to
an e s tim a te d 5 0 ,0 0 0 ,0 0 0 p e r s o n s .
R ely in g on th e v o lu n ta ry c o o p e ra tio n of th e v a rio u s
com m unications media f o r p u b l i c i t y , Mr. Graves o b ta in e d t h i s
c o o p e ra tio n to an u n p re c e d e n te d e x t e n t . A d v e rtis in g space
and r a d io tim e e s tim a te d t o be w o rth $100 m illio n s have been
d o n ated to th e War Bond s e l l i ®
c a u se .
Mr. G raves began in Ja n u a ry , 1942, t o prom ote bond
bu y in g th ro u g h th e p a y r o l l sa v in g s p la n , and th e work o f th e
War Savings S t a f f under h i s d i r e c t i o n b u i l t p a r t i c i p a t i o n
in t h i s p la n from ab o u t 700,000 p erso n s buying $27 m illio n s
in bonds a month to more th a n 2 7 ,0 0 0 ,0 0 0 p erso n s
in v e s tin g $425 m illio n s a month.
Mr. G raves has e n jo y e d th e l o y a l t y and r e s p e c t o f a l l
o f h is a s s o c ia te s and s u b o r d in a te s b o th in W ashington and in
th e f i e l d . He i s known to th o u sa n d s o f f r ie n d s a s nPappy. 11
Bom in I l l i n o i s , he i s a v e te r a n in th e Government
s e r v ic e . H is f i r s t work was as a te a c h e r in th e Bureau o f
E d u ca tio n , P h ilip p in e C i v il S e rv ic e , in 1908. He l a t e r h e ld
im p o rta n t a c c o u n tin g p o s itio n s in th e P h ilip p in e s , and in
1917 was t r a n s f e r r e d to th e U.S. Bureau o f E f f ic ie n c y
in W ashington, a s an a c c o u n ta n t.
From 1925 to 1943, Mr. Graves se rv e d p e r io d s as
Admini s t r i v e A s s is ta n t to th e ^ S g c re ta r y of Commerce,
E x ec u tiv e A s s is ta n t to the P o stm a ste r G e n e ra l, and d i r e c t o r
of PQs t a l R ate R esearch , Post O ffic e D epartm ent. He was
a p p o in te d A s s is ta n t to th e S e c r e ta r y of th e T re asu ry in
Hovember, 1934.
re s p o n s ib ilitie s
One of h is e a r ly T re a su ry /ja M ta was to b rin g about
c o o r d in a tio n in th e work o f the v a r io u s
enforcem ent
a g e n c ie s o f th e
D ep artm en t. Under h i s d i r e c t i o n , a ls o ,
d e c e n t r a l i z a t i o n o f th e t e c h n i c a l s t a f f o f th e Bureau o f
I n t e r n a l Revenue was e f f e c t e d . This le d to th e sp eed in g up
o f s e ttle m e n t o f th o u sa n d s o f d e la y e d ta x c a s e s .
TREASURY DEPARTMENT
•Washington
FOR IMMEDIATE RELEASE
T hursday, J u ly 1, 1943
Pr e ss S e rv ic e
N o* 3
7"
3 a'
The work of Ha r o ld N, G raves, h e r e to f o r e A s s is ta n t to the
S e c r e ta r y o f th e Tpeasu ry , in o r g a n iz in g th e T r e a s u r y ^
War S avings S t a f f and d ir e c tin g i t s a c t i v i t i e s f o r two and
a h a l f y e a rs
was p r a is e d by S e c r e ta r y M orgenthau to d ay as
Mr. G-r aves l© ft h i s form er p o s it io n to be sworn In as
A s s is ta n t Com m issioner o f I n te r n a l Revenue. The S e c r e ta r y said
Mr. Craves was e x c e p tio n a lly eq u ip p ed t o d e a l w ith g r e a t
new
problem s o f income ta x
a d m in is tr a tio n
w hich w i l l
c o n fro n t him in h is new p o s t .
Also sworn in as A s s is ta n t Com missioner was Norman D.
Cann, h e r e to f o r e A s s is ta n t to th e Commissioner o f I n te r n a l
Revenue, Guy T. Hel v e r i n g . Mr. G raves and Mr. Cannrwere
a p p o in te d A s s is ta n t Com m issioners by P r e s id e n t Roosev&Lt under
a u t h o r i t y of th e C u rren t Tax Payment Act o f 1943, w hich
c r e a te d th e two new p o s i t i o n s . By a d m in is tr a tiv e d e s ig n a tio n ,
Mr. Cann is th e s e n io r A s s is ta n t.
A ppointed A s s i s t a n t to th e S e c r e ta r y in November, 1934,
Mr. Graves was asked by Se c r e ta r y M rg e n th a u 1m in Ja n u ary ,
1941, to ta k e o v er th e t a s k o f c r e a tin g in W ashington a s t a f f $
f o r in te n s iv e prom otion o f th e s a le o f what th en were known
as Defense S avings Bonds, and to d i r e c t th e fo rm a tio n in
each S ta te of a f i e l d o r g a n iz a tio n
of the
W ashington s t a f f *
He r e c r u i t e d a sm a ll f o r c e ^ f a s s is ta n ts f o r th e
o r g a n iz a tio n work, and in a few months had an e f f i c i e n t
W ashington h e a d q u a rte rs in o p e r a tio n and a f i e l d s t a f f in
n e a r ly e v e ry S t a t e . T h is was fo llo w e d by th e r e c r u i t i n g of
hundreds o f th o u san d s o f v o lu n te e r s in to s a le s f o rc e s a l l
o v er th e c o u n tr y .
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T hursday, J u ly 1, 19^ 3.
P re ss R e lea se
No. 37-35
The work, o f H aro ld N. G raves, h e r e to f o r e A s s is ta n t
to th e S e c r e ta r y o f th e T re a su ry , in o rg a n iz in g th e
T r e a s u r y 1s War S avings S ta f f and d i r e c t i n g i t s a c t i v i t i e s
f o r two and a h a l f y e a r s , was p r a is e d by S e c r e ta r y M orgenthau
to d ay as Mr, G raves l e f t h is fo rm er p o s it io n to be sworn
in as A s s is ta n t Com m issioner o f I n t e r n a l Revenue,
The
S e c r e ta r y s a id Mr, G raves was e x c e p tio n a lly equipped to
d e a l w ith g r e a t new problem s of income ta x a d m in is tr a tio n
w hich w i l l c o n fro n t him in h i s new p o s t.
Also sworn in as A s s is ta n t Com m issioner was Norman:D,
Cann, h e r e to f o r e A s s is ta n t to th e Com m issioner o f I n t e r n a l
Revenue, Guy Ti H e lv e rin g , Mr. G raves and Mr. Cann were
a p p o in te d A s s is ta n t Com m issioners by P r e s id e n t R o o sev elt
u n d er a u th o r ity o f th e C u rre n t Tax Payment Act of. 19*4-3,
w hich c r e a te d th e two new p o s i t i o n s . By a d m in is tr a tiv e
d e s ig n a tio n , Mr, Cann i s th e s e n io r A s s i s t a n t .
A ppointed A s s is ta n t to th e S e c r e ta r y in November,
193^» Mr, G raves was asked by S e c r e ta r y M orgenthau In J a n u a ry , 19^1, to ta k e o v er th e , ta s k o f c r e a tin g in W ashington
a s t a f f f o r in te n s iv e prom otion o f th e s a le of what th e n
were known as D efense S avings Bonds, and to d i r e c t th e
fo rm a tio n in each S ta te o f a f i e l d o r g a n iz a tio n o f th e
W ashington s t a f f .
He r e c r u i t e d a sm all fo rc e o f a s s i s t a n t s f o r th e o r
g a n iz a tio n work, and in a few months had an e f f i c i e n t
W ashington h e a d q u a r te r s in o p e r a tio n and a f i e l d s t a f f in
n e a r ly every S t a t e . T h is was fo llo w ed by th e r e c r u i t i n g
o f hundreds of th o u san d s o f v o lu n te e r s in to s a le s f o r c e s
a l l o v er th e c o u n try ,
D e sp ite th e huge s iz e o f th e job done by th e War Sav
in g s S t a f f — th e l a r g e s t s e l l i n g job in th e h i s t o r y of
th e w orld — i t s p a id fo rc e a t n o .tim e exceeded 1,200 p e r
sons f o r th e e n t i r e c o u n try , s te n o g ra p h e rs and t y p i s t s i n
c lu d e d .
-
2 -
War S avings Bonds t o t a l i n g n e a r ly f i g b i l l i o n s were
s o ld u n d er Mr* G ra v e s1 s u p e r v is io n . They were d i s t r i b u t e d
to an e s tim a te d 50, 000,000 p e rs o n s .
R e ly in g on th e v o lu n ta r y c o o p e ra tio n o f th e v a rio u s
com m unications media f o r p u b l i c i t y , Mr. G raves o b ta in e d
t h i s c o o p e ra tio n to an u n p re c e d e n te d e x t e n t. A d v e r tis in g
space and r a d io tim e e s tim a te d to be w orth $100 m illio n s
have been d o n ated to th e War Bond s e l l i n g c a u se .
Mr* G raves began in Ja n u a ry , 19*12, to prom ote bond
b uying th ro u g h th e p a y r o ll sa v in g s p la n , and th e work o f
th e War Savings S t a f f un d er h is d i r e c t i o n b u i l t p a r t i c i
p a tio n in t h i s p la n from ab o u t J 0 0 , 000 p erso n s buy in g
$27 m illio n s in bonds a month to more th a n 27, 000,000 p e r
sons in v e s tin g $*125 m illio n s a month.
Mr* Graves has en joyed th e l o y a l t y and r e s p e c t o f a l l
o f h is a s s o c ia te s and s u b o rd in a te s b o th in W ashington and
in th e f ie ld * He i s Known to th o u san d s o f f r ie n d s as
"Pappy**
Born in I l l i n o i s , he i s a v e te ra n in th e Government
s e r v ic e . His f i r s t work: was as a te a c h e r in th e Bureau
o f E d u ca tio n , P h ilip p in e C iv il S e rv ic e , in 1908. He l a t e r
h e ld Im p o rtan t a c c o u n tin g p o s itio n s in th e P h ilip p in e s ,
and in 1917 was t r a n s f e r r e d to th e U* S. Bureau o f E f
f ic ie n c y in W ashington, a s an a c c o u n ta n t.
From I 925 to 1 9^31 Mr, G raves se rv e d p e rio d s as Ad
m i n i s t r a t i v e A s s is ta n t to th e S e c r e ta r y o f Commerce,
E x ec u tiv e A s s is ta n t to th e P o stm a ste r G e n e ra l, and d i r e c t o r
o f P o s ta l R ate R e sea rc h , P o st O ffic e D epartm ent* He was
a p p o in te d A s s is ta n t to th e S e c r e ta r y o f th e T re a su ry in
November, 193b,
One o f h i s e a r ly T re asu ry r e s p o n s i b i l i t i e s was to
b r in g about c o o r d in a tio n in th e work o f th e v a rio u s en
forcem ent a g e n c ie s o f th e D epartm ent, Under h is d i r e c t i o n ,
a ls o , d e c e n t r a l i z a t i o n o f th e te c h n ic a l s t a f f o f th e
Bureau o f I n t e r n a l Revenue-was e ffe c te d * T h is le d to th e
sp e ed in g up o f s e ttle m e n ts o f th o u sa n d s o f d e la y e d ta x
cases*
"Mr, G raves h as done rem ark ab le work in a l l o f h is
v a r ie d T re a su ry t a s k s , " s a id S e c r e ta r y M orgenthau,
"Given some o f o u r most d i f f i c u l t a d m in is tr a tiv e a s
sig n m en ts, o f w hich th e c r e a tio n o f th e War S avings S ta f f
was only one, he b ro u g h t to them a l l a g en iu s f o r o rg an
i z a t i o n and a d m in is tr a tio n w hich produced th e most p r a i s e
w orthy r e s u l t s ,
-
3 -
"In th e B ureau o f I n t e r n a l Revenue, th e war and th e
new method o f c o l l e c t i n g Income ta x e s on a p ay -as-y o u -g o
b a s is have b ro u g h t g r e a t new problem s o f income ta x ad
m i n i s t r a t i o n . I am su re t h a t in h is c a p a c ity of A s s i s t
a n t Com m issioner, Mr, G raves w i l l c o n tr ib u te much to th e
s o lu tio n of th e s e p ro b lem s,"
Mr, Graves and Mr, Cann were sworn in a t a ceremony
in th e o f f i c e o f Com m issioner o f I n t e r n a l Revenue H e lv e rin g
a t noon.
Mr. Cann, l i k e Mr, G raves, has g iv en many y e a rs to
th e Government s e r v ic e . A r e s i d e n t o f A tla n ta , G eorgia,
he was a p p o in te d a t r a i n e e a u d ito r w ith o u t com pensation
on Ja n u a ry 1, 1924, and became a ju n io r a u d ito r in th e
Bureau o f I n t e r n a l Revenue on Ja n u a ry 1, 1925.
A few months l a t e r he was t r a n s f e r r e d to th e I n t e r n a l
Revenue F ie ld S e rv ic e in A tla n ta , He se rv e d in p ro g re s
s iv e ly more r e s p o n s ib le p o s ts in A tla n ta , W ashington,
Los A ngeles and New York, and was a p p o in te d A s s is ta n t to
th e Com missioner of I n t e r n a l Revenue on Septem ber 9, 1941,
Mr, Cann i s a World War v e te r a n and w ears th e P u rp le
H eart d e c o r a tio n , He saw a c tiv e s e r v ic e in th e A .S .F .
from Septem ber, 1917* to March, 1919> as s e rg e a n t in th e
Tank C orps,
/
0 O0
-
I
MR. Schwarz
TREASURY DEPARTMENT
W ashington
EOR IMMEDIATE RELEASE,
p r e s s S e rv ic e
Friday, July g, 1 9 U 3
Ho. 3 7 - 3 6
The f o llo w in g s ta te m e n t was made to d a y by S e c r e t a r y M orgenthau;
The © a lly T re a s u ry S ta te m e n t f o r Ju n e 30, 19^3, r e l e a s e d to d a y ,
c o v e rs f i n a n c i a l o p e r a tio n s o f th e Government f o r th e f i s c a l y e a r 19 U3 .
Total budgetary expenditures of the Government during the fiscal
year ended June 30, 19^3 were $ 7 8 ,1 7 9 ,0 0 0 ,0 0 0 ,
or more than double
the expenditures of $3 2 ,3 9 7 ,0 0 0 ,0 0 0 for the preceding year.
B u d g e ta ry e x p e n d itu r e s f o r war a c t i v i t i e s am ounted to $ 7 2 ,1 0 9 ,0 0 0 ,0 0 0 ,
o r a p p ro x im a te ly 92 p e r c e n t o f a l l e x p e n d itu r e s f o r th e y e a r , and n e a r l y
t h r e e tim e s a s l a r g e a s th e e x p e n d itu r e s o f $ 26 , 011 , 000,000 f o r t h i s
p u rp o se i n 19^2.
War e x p e n d itu r e s r e p r e s e n t e d a p p ro x im a te ly k2 p e r c e n t
o f th e g r o s s n a t i o n a l p ro d u c t f o r th e f i s c a l y e a r I 9U3 , a s com pared
w ith a p p ro x im a te ly 20 p e r c e n t o f th e g r o s s n a t i o n a l p ro d u c t expended
i n th e f i s c a l y e a r 19^2.
N et re v e n u e r e c e i p t s f o r th e f i s c a l y e a r 19^3 d id n o t i n c r e a s e i n
p r o p o r tio n to th e i n c r e a s e in e x p e n d itu r e s , b u t s u b s t a n t i a l g a in s in
re v e n u e were r e a l i z e d . N et r e c e i p t s f o r 19^3 w ere $ 2 2 ,2 8 2 ,0 0 0 ,0 0 0 a s
com pared w ith n e t r e c e i p t s o f $ 1 2 ,7 9 9 ,0 0 0 ,0 0 0 in 19^2, an i n c r e a s e o f
a p p ro x im a te ly 7*+ p e r c e n t.
The net deficit for the year was $55,897,000,000, as compared with
the net deficit of $19,593,000,000 for 1 9 U 2 ,
RECEIPTS AND EXPENDITURES
The following table shows (1) receipts and expenditures for the
fiscal year 19^2; (2) receipts and expenditures for the fiscal year
19^3, e-ad (3) the increase or decrease in I 9 U 3 receipts and e xpends
tures as compared with the fiscal year 1 9 ^ 2 .
RECEIPTS AND EXPENDITURES, FISCAL TEARS 1942 AND 1943
(In millions of dollars)
1942
Receipts!
Internal revenue:
Income tax ...... . . . . . . .
Miscellaneous internal revenue . . . . . . . . . .
Social security taxes .....................
Taxes upon carriers and their employees ......
IJjailroad unemployment insurance contributions . . . .
Customs ..................... . . . . . . . . .
Miscellaneous receipts .. .......... . . . . . . .
Total receipts........... .
Deduct net appropriations to Federal old-age and survivors
insurance trust fund .................. .......
Net receipts .......... . . . . . . .
Expenditures:
I. General:
Departmental (not otherwise classified). . . .
Agriculture Department:
Agricultural Conservation and Adjustment
Administration . ...... . . . . . .
O t h e r ...........................
Federal Security Agency:
Civilian Conservation Corps ..........
Social Security Board .......... . . .
Other . . . . . . . . . . ...........
Federal Works Agency:
Work Projects Administration . . . . . . .
Other
............. .
Interior Department:
Reclamation projects .. .............
National Housing Agency ...... ........
Panama Canal........ .................
Post Office Department (deficiency) ......
Railroad Retirement Board . . . ..........
River and harbor work and flood control . . .
Tennessee Valley Authority ...............
Treasury Department:
Interest on the public debt ..........
Refunds of taxes and duties ..........
Veterans' Administration ..........
Subtotal..................... .
II. War activities:
War Department.......... .............
Navy Department . . . . . . ...... . . . . ,
Agriculture Department . . . . . ..........
Federal Security Agency ........ . . . . . .
Federal Works Agency
National Housing Agency . . . . ..........
Treasury Department ............... .
United States Maritime Commission . . . . . . .
War Shipping Administration . . . . . . . . . .
Aid to China ............. . . . . . . . .
Other .................. ..........
Subtotal ..........................
III. Revolving funds (net):
Farm Credit Administration . . . . . . . . . . .
Public Works Administration ..............
Subtotal........ ..........
IV. Transfers to trust accounts, etc.:
Agricultural Marketing Administration (surplus
commodity stamps) . . . . . . . . . . .
Federal contribution to District of Columbia
(United States share). . . . . . . . . . . .
Government employees' retirement funds (United
States share). . . . . . . ...... . . . .
National service life insurance fund . . . . . .
Railroad retirement account . . . . . . . . . .
Railroad unemployment insurance administration
fund transfers to unemployment trust fund
(act Oct. 10, 1940)...... ............
Subtotal .............
Total expenditures (excluding public debt
retirements) ........ , ......
Net deficit ...............
Note:
a/
Figures are rounded to the nearest million and will
not necessarily add to the totals shown.
Excess of credits, deduct.
Increase (/)
Decrease (-)
1943
7,960
3,847
1,016
170
8
389
277
13,668
16,094
4,553
1,289
209
10
324
906
23,385
/ 8,134
706
/
273
/
39
/
2
/
65
629
_/
T 9,717
869
12,799
1,103
22,282
234
/
/ 9,483
685
732
/
47
786
190
765
169
-
21
21
163
473
163
18
474
81
882
242
299
149
91
18
38
18
10
191
127
69
15
31
15
8
201
111
1,260
94
555
5,986
1,808
79
572
5,595
14,103
8,580
696
111
62
297
519
929
132
200
382
26,011
42,317
20,888
2,011
153
215
608
1,201
2,776
1,105
40
795
72,109
7
11
18
45
126
71
6
6
103
1
141
107
30
215
4
381
6
435
32,397
19,598
78,179
55,897
41
/
145
1
82
-
583
93
m
m
/
+
/
22
3
7
3
2
10
16
548
15
17
391
/ 28,214
/ 12,308
/ 1,315
42
/
/
153
/
311
682
/
/ 1,847
/
973
160
/
413
/ 46,098
/
/
—
T~
34
12
22
55
—
/
/
/
i
H Z I
4
29
74
2
54
/ 45,782
/ 36,299
-3 H e c e ip ts f o r th e f i s c a l y e a r 19 ^ 3 , am o unting to $ 23 , 385 , 000 , 000 ,
w ere th e l a r g e s t i n th e G o v e rn m e n ts h i s t o r y , e x c e e d in g th o s e f o r 19^2
by $ 9 *717 *000 , 000 , o f w hich th e i n c r e a s e in income ta x e s a c c o u n te d f o r
$ 8 ,1 3 ^ ,0 0 0 ,0 0 0 . In a d d i t i o n m is c e lla n e o u s i n t e r n a l rev en u e in c r e a s e d
$ 7 0 6 ,0 0 0 ,0 0 0 ; S o c ia l S e c u r it y ta x e s in c r e a s e d $ 2 7 3 ,0 0 0 ,0 0 0 } ta x e s upon
c a r r i e r s and t h e i r em ployees in c r e a s e d $ 39 , 000 , 000 ; w h ile custom s r e
c e i p t s , r e f l e c t i n g a d e c r e a s e i n d u t i a b l e im p o rts o c c a s io n e d by th e w ar,
d e c lin e d $ 6 5 ,0 0 0 ,0 0 0 . M is c e lla n e o u s r e c e i p t s in c r e a s e d $ 6 2 9 ,0 0 0 ,0 0 0 ,
o f w hich more th a n $ ^ 50 , 000,000 r e p r e s e n t s th e c a s h r e tu r n e d to th e
T re a s u ry a s a r e s u l t o f r e n e g o t i a t i o n s o f war c o n t r a c t s by th e War and
Wavy D ep artm en ts and th e U n ite d S t a t e s M aritim e Com m ission,
T o ta l r e c e i p t s f o r th e f i s c a l y e a r j u s t ended w ere $ 1 ,1 6 7 ,0 0 0 ,0 0 0
l e s s th a n th e B udget e s tim a te o f J a n u a ry 6, 19^3* B ecause o f th e con
s i d e r a t i o n o f th e p a y -a s -y o u -g o t a x l e g i s l a t i o n , a v e ry much s m a lle r
th a n norm al p r o p o r tio n o f th e income ta x l i a b i l i t i e s due i n r e s p e c t o f
c a le n d a r y e a r 19^-2 incom es was p a id i n f u l l i n M arch o f 19 U3 . T h is d o es
n o t n e c e s s a r i l y r e p r e s e n t a l o s s in re v e n u e b u t h a s r e s u l t e d p r i n c i p a l l y
i n a d e fe rm e n t in c o l l e c t i o n s w hich w i l l be s u b s e q u e n tly r e c e iv e d .
The t o t a l B u d g e ta ry e x p e n d itu r e s ( e x c lu d in g d e b t r e t i r e m e n t ) f o r th e
f i s c a l y e a r I 9 U3 am ounted to $ 78 , 179 , 000 , 000 , an i n c r e a s e o f $i+5 , 782 , 000,000
com pared w ith th e p r e v io u s f i s c a l y e a r , B u d g e ta ry e x p e n d itu r e s w ere
$ 2 ,2 5 3 * 0 0 0 ,0 0 0 l e s s th a n th e amount e s tim a te d f o r th e y e a r i n th e B udget
M essage o f J a n u a ry 6 , 1 9 ^ 3 , of w hich $ 1 ,8 9 1 ,0 0 0 ,0 0 0 was on a c c o u n t o f war
a c tiv itie s .
E x p e n d itu re s f o r war a c t i v i t i e s in c r e a s e d by $U6 , 098 , 000,000 in th e
y e a r j u s t ended, com pared w ith th e f i s c a l y e a r 19U2. Of t h i s i n c r e a s e ,
e x p e n d itu r e s by th e War D epartm ent a c c o u n te d f o r $28,21*1,000,000; Wavy
D epartm ent e x p e n d itu r e s in c r e a s e d $ 1 2 ,3 0 8 ,0 0 0 ,0 0 0 ; e x p e n d itu r e s o f th e
U n ite d S t a t e s M aritim e Commission and War S h ip p in g A d m in is tr a tio n r e
f l e c t e d an i n c r e a s e o f $ 2 ,8 2 0 ,0 0 0 ,0 0 0 ; e x p e n d itu r e s by th e T re a s u ry and
A g r ic u lt u r e D ep artm en ts f o r war p u rp o s e s , p r i n c i p a l l y p u rc h a s e s f o r L endL ease e x p o r t, in c r e a s e d $ 1 ,9 9 7 ,0 0 0 ,0 0 0 ; w h ile a l l o th e r c a t e g o r i e s o f war
a c t i v i t i e s e x p e n d itu r e s r e f l e c t e d a n e t i n c r e a s e o f $ 759 , 000 , 000 *
G e n e ra l e x p e n d itu r e s , w hich in c lu d e most o f th e o r d in a r y o p e r a tio n s o f
th e G overnm ent, showed a n e t d e c r e a s e o f $ 3 9 1 ,0 0 0 ,0 0 0 i n th e f i s c a l y e a r
1943 com pared w ith 19 ^-2 , a lth o u g h i n t e r e s t on th e p u b lic d e b t in c r e a s e d by
$5^-8,000,000. A co m p ariso n o f g e n e r a l e x p e n d itu r e s r e f l e c t s a n e t d e c r e a s e
o f $ 8 5 1 ,0 0 0 ,0 0 0 , a f t e r e x c lu d in g i n t e r e s t on th e p u b li c d e b t and m aking
a llo w a n c e f o r change in c l a s s i f i c a t i o n o f R a tio n a l y o u th A d m in is tr a tio n
e x p e n d itu r e s to war a c t i v i t i e s .
The p r i n c i p a l d e c r e a s e s i n e x p e n d itu r e s
w ere Work p r o j e c t s A d m in is tr a tio n , $583*000,000; C i v i l i a n C o n s e rv a tio n
C orps, $1^5* 0 0 0 ,0 0 0 ; v a r io u s a c t i v i t i e s u n d e r th e F e d e r a l Works Agency,
$93*000,000; I n t e r i o r D ep artm en t, r e c la m a tio n p r o j e c t s , $ 2 2 ,0 0 0 ,0 0 0 ;
T en n e ssee V a lle y A u th o r ity , $ 1 6 ,0 0 0 ,0 0 0 ; r e f u n d s o f ta x e s and d u t i e s ,
$ 1 5 ,0 0 0 ,0 0 0 ; and panama C an al, $ 7 ,0 0 0 ,0 0 0 . T h ere w ere v e r y few c a t e g o r ie s
o f g e n e ra l e x p e n d itu r e s in w hich t h e r e w ere i n c r e a s e s d u r in g th e f i s c a l
y e a r 19^+3* The i n c r e a s e s i n e x p e n d itu r e s w ere D e p a rtm e n ta l, $^-7*000,000;
V e te r a n s ’ A d m in is tr a tio n , $ 1 7 ,0 0 0 ,0 0 0 , and r i v e r and h a rb o r work and f lo o d
c o n t r o l , $ 1 0 ,0 0 0 ,0 0 0 .
~u~
H et e x p e n d itu r e s u n d e r R ev o lv in g Funds in c r e a s e d $ 2 2 ,0 0 0 ,0 0 0
d u rin g th e f i s c a l y e a r 19^3. Farm C r e d it A d m in is tr a tio n a c t i v i t i e s
a c c o u n tin g f o r an i n c r e a s e o f $ 3 ^ ,0 0 0 ,0 0 0 and p u b lic Works A dm inis
t r a t i o n r e f l e c t i n g a d e c r e a s e o f $ 12 , 000 , 000 .
T r a n s f e r s to t r u s t a c c o u n ts , e t c . , in c r e a s e d $5*1,000,000 d u r in g
th e y e a r j u s t ended com pared w ith th e p r e v io u s f i s c a l y e a r , p r i n c i p a l l y
b e c a u se o f th e in c r e a s e d amount t r a n s f e r r e d to th e R a ilr o a d R e tire m e n t
A ccount o f $ 7 ^ ,0 0 0 ,0 0 0 and th e t r a n s f e r to th e R a tio n a l S e r v ic e R if e
In s u ra n c e Fund w hich showed an i n c r e a s e o f $ 2 9 ,0 0 0 ,0 0 0 . An o f f s e t t i n g
r e d u c t io n o f $ 55 , 000,000 was e f f e c t e d u n d er th e fo o d stam p program o f
th e A g r i c u l t u r a l M a rk e tin g A d m in is tr a tio n b e c a u se o f th e te r m in a tio n
o f t h a t program d u r in g th e y e a r .
T here i s shown below a co m p ariso n o f th e e x p e n d itu r e s of th e
Government d u r in g th e f i s c a l y e a r s 19**2 and 19^3, o th e r th a n th o s e
c l a s s i f i e d a s °war a c t i v i t i e s 0:
F i s c a l Y ear
19U2
4
G e n e ra l e x p e n d itu r e s :
I n t e r e s t on th e p u b lic d e b t
1,260
O th er
**,726
R e v o lv in g Funds
IS
T r a n s f e r s to t r u s t a c c o u n t s ,e t c .
381
T o ta l
6,386
F i s c a l Y ear
19 ^ 3 . in c re a se
o r d e c re a s e
(In m illio n s of d o lla r s )
H
19 3
1 ,8 0 8
3 ,7 8 7
ko
U35
- / 5^8
22
-h 51*
6,070
-
939
316
In a d d i t i o n to d i r e c t B u d g e ta ry e x p e n d itu r e s , d u r in g th e f i s c a l
y e a r 19^3, n e t paym ents f o r a c c o u n t o f G overnm ental a g e n c ie s , e t c . ,
am ounted to $ 2 , 19 *+, 000 , 000 , in c lu d in g $ 658 , 000,000 r e p r e s e n t i n g n e t
re d e m p tio n s o f o b l i g a t i o n s o f G overnm ental c o r p o r a t io n s . The p r i n c i p a l
d is b u rs e m e n ts in t h i s c a te g o r y were th o s e o f th e R e c o n s tr u c tio n F in a n c e
C o rp o ra tio n , i^hich a g e n c y ^ n e t e x p e n d itu r e s , o th e r th a n th o s e f o r r e
dem ption o f i t s o b l i g a t i o n s , am ounted to $ 2 , ^ 97 , 000 , 000 , p r a c t i c a l l y
a l l o f w hich wa^ expended f o r war a c t i v i t i e s . The o p e r a tio n s of th e
Commodity C r e d it C o rp o ra tio n and th e Home O w ners 1 Roan Q e rp o ra tio n r e
s u l t e d in n e t c o l l e c t i o n s f o r th e y e a r o f $ 193 , 000 , 000 , and $ 363 , 000 , 000 ,
re s p e c tiv e ly .
War a c t i v i t i e s e x p e n d itu r e s w ere r u n n in g a t an a n n u a l r a t e o f
$ 4 6 ,0 0 0 ,0 0 0 ,0 0 0 , a t th e c lo s e o f th e f i s c a l y e a r 1942 and h a d i n
c re a s e d to an a n n u a l r a t e o f n e a r l y $ 90 , 000 , 000,000 a t th e c lo s e o f
th e f i s c a l y e a r 194-3*
The m o n th ly tr e n d o f d e f e n s e and war e x p e n d itu r e s d u r in g th e
f i s c a l y e a r s 1941, 1942 and 1943 i s shown i n th e f o llo w in g t a b l e ;
________ F i s c a l Y ear_______
fin m illio n s of d o l l a r s ) l /
Month
July
August
September
October
November
December
January
February
March
April
May
June
Total
U
199
223
241
311
393
495
589
19 1
610
769
782
857
S32
6 ,3 0 1
1942
969
1 ,1 3 1
1,330
1,537
1,44S
1,850
2,104
2,20S
2,809
3,238
3 ,5 6 0
3,829
2 6 ,0 1 1
19 ^ 3
4 ,4 9 8
4, 884
5,3S>+
5, to
6,042
5,825
5,9^7
5 ,7 7 0
6 ,7 4 4
6.97U
7,092
7,U69
72,109
1/ Figures are rounded to nearest million andwill not necessarily add
to totals shown*
—
6
-
F in a n c in g n e t d e f i c i t and o t h e r re q u ire m e n ts
The f o llo w in g t a b l e shows t h e s o u rc e s w hich p ro v id e d th e fu n d s to
f in a n c e th e n e t d e f i c i t o f $ 55 >397* 000 * 000 , th e e x c e ss o f e x p e n d i
t u r e s o f t r u s t a c c o u n ts and g o v e rn m e n ta l c o r p o r a t io n s , e t c . , o f
11 , 861 , 000 , 000 , an d th e i n c r e a s e in th e g e n e r a l fu n d b a la n c e o f
$6 , 516 , 000 , 000 , o r a t o t a l o f | 6 4 , 27 -4, 000 , 000 .
(In m illio n s o f d o lla r s )
N et d e f i c i t , e x c lu d in g d e b t r e t i r e m e n t s . . . . . . . . . . . . . . . . . . . . .
55,897
E xcess o f r e c e i p t s ( - ) o r e x p e n d itu r e s ( / ) i n
( a ) C hecking a c c o u n ts of g o v e rn m e n ta l a g e n c ie s :
G e n e ra l ................................................................. ....
S a le s and re d e m p tio n s o f o b l i g a t i o n s
i n th e m a rk e t ( n e t ) , .......................................
( b ) T r u s t and o t h e r a c c o u n ts ...................................
/ 1 ,5 3 5
/
658
—
333
/ 6 ,5 1 6
8 ,3 7 7
T o ta l r e a u ir e m e n ts ..................... ......................
64 , 274.
I n c r e a s e i n g e n e r a l fu n d b a la n c e ...............
Means o f fin a n c in g ?
P u b lic d e b t r e c e i p t s ( n e t ) from
( a ) P u b lic i s s u e s :
If-e a su ry B i l l s ........................... ...........................
9,34-0
T re a s u ry C e r t i f i c a t e s of I n d e b t e d n e s s . .. 13 , 4.74
Treasury Notes ............................ 2,48O
Treasury Notes (tax series) ............. 4 ,4 8 1
T re a s u ry Bonds ..................... ............... .................. 19,489
U. S. Savings Bonds ....... ............... 11,068
Other issues .....
935 61,288
(b) Special issues:
Unemployment T r u s t Fund ................................. 1 ,1 4 3
Federal Old-age and Survivors
Insurance Trust Eund .................. 9 10
National Service Life Insurance Fund .. 313
Other issues ...............
619 2,986
Total..................... .............. 64 ,2 7 4
NOTE: Figures rounded to nearest million and will not necessarily
add to totals shown.
- ? -
TH%HJBLICDUBT
The gross public debt on June 30, 19^3, amounted to $ 1 3 6 ,6 9 6 ,0 0 0 ,0 0 0
as compared with $ 7 2 ,^ 2 2 ,0 0 0 ,0 0 0 on June 30, 19U2 , an increase of
$ 64 , 274 , 000 , 000 . O
f the increase in the public debt $ 6 ,5 1 6 ,0 0 0 ,0 0 0
represent an increase in the general fund balance which is available to
meet expenditures in the next fiscal year.
The computed rate of interest on the total interest-bearing public
debt declined to a newlowpoint, The average rate was 1.979 percent
on June 30 , 19^3, &s compared with 2 .2 8 5 percent on June 30 , 19 U2 .
The following statement shows the public debt as of June 30 , 19^2,
and June■30, 19^3, classified by character of issues, as between
regular issues sold on the market and special issues held for account
of Government trust and special funds. The amount of outstanding public
issues increased $6l,2 8 8 ,0 0 0 ,0 0 0 during the year, and special issues in
creased $2,986,000,000.
S ta te m e n t o f th e o u ts ta n d in g p u b lic
deb t on June 30* 19*4.2, and Ju n e 3 0 , 1 9 4 3
(In m illio n s o f d o lla r s )
Issu e s
P u b lic is s u e s
,
Prew ar and p o s t a l s a v in g s bonds ...................
T re a s u ry bonds
................... ...............
U n ite d S t a t e s S a v in g s bonds ....................... ..
D e p o s ita ry b o n d s ........... ..................
A d ju s te d S e r v ic e bonds .....................
T re a s u ry n o te s ....................... ........................
T re a s u ry S av in g s n o te s ( t a x s e r i e s ) . . . . , .
C e r t i f i c a t e s o f in d e b te d n e s s . . . . . ............
T re a su ry b i l l s ........................................„ ............. ..
M atured d e b t on w hich i n t e r e s t h as ce a se d
D ebt b e a r in g no i n t e r e s t
S u b to ta l .............................. .
S p e c ia l is s u e s
R e tire m e n t a c c o u n ts :
A la sk a R a ilr o a d R e tire m e n t Fund . . . . . . .
C anal Zone R e tire m e n t Fund ..........................
C i v i l S e r v ic e R e tire m e n t F u n d ............
F o re ig n S e r v ic e R e tire m e n t Fund ..............
R a ilr o a d R e tire m e n t A ccount , , . . . . . . . . ,
S p e c ia l fu n d s :
A d ju s te d S e r v ic e C e r t i f i c a t e Fund . . . . .
F e d e r a l O ld -a g e and S u r v iv o r s
In s u ra n c e T r u s t Fund ...................................
Government L if e I n s u r a n c e Fund .................
N a tio n a l S e r v ic e L if e In s u ra n c e F u n d ...
Unemployment 'T ru st Fund .............. ..................
In v e s tm e n t a c c o u n ts :
C anal Zone P o s t a l S av in g s System
. f e d e r a l D e p o s it In s u ra n c e C o rp o ra tio n »
F e d e r a l S av in g s & Loan In s u r a n c e
C o rp o ra tio n .....................................
f,
P o s t a l S av in g s S y s t e m .............. ............... ..
S u b t o t a l .................................
Grand T o ta l .....................................
NOTE:
J
:
:
i
•
•
Ju n e
30
1942
196
3 8 ,0 8 5
10, IBB
79
229
6 ,6 8 9
3 ,0 1 5
3 ,0 9 6
2 ,5 0 8
98
___ 356
6 4 ,5 3 7
1
7
783
5
i
i
:
:
Ju n e
30
1943
Change
d u rin g
fis c a l
year
1943
196
5 7 ,5 2 0
21,256
226
222
9 ,1 6 8
7 ,4 9 5
16,561
1 1 ,8 6 4
141
. 1 ,1 7 5
/ 19,435
/ 1 1 ,0 6 8
/
147
7
/ 2,479
/ 4 ,4 8 0
/ 1 3 ,4 6 5
/ 9 ,3 5 6
/
43
819
1 2 5 ,8 2 5
/6 l,2 8 8
2
1
8
/
1 ,0 6 0
/■
/
+
6
91
178
18
18
3 ,1 3 3
537
39
3 ,1 1 4
4 ,0 4 4
538
352
4 ,2 5 7
1
95
2
103
5
55
106
7 ,8 8 5
1 0 ,8 7 1
7 2 ,4 2 2
:
:
:
:
!
197
1
277
1
87
/
i
911
1
313
1 ,1 4 3
1
/
8
/
101
A
/
142
2 ,9 8 6
136,696 / 6 4 ,2 7 4
F ig u r e s a r e ro u n d ed to th e n e a r e s t m i l l i o n and w i l l n o t n e c e s s a r i l y add
to t o t a l s shown.
STATUTORY DEBT LIMITATION
U nder th e P u b lic D ebt A ct o f 1943, th e l i m i t a t i o n on th e g e n e r a l
b o rro w in g pow er u n d e r th e Second L i b e r ty Bond A c t, as amended, was
in c r e a s e d from $ 1 2 5 ,0 0 0 ,0 0 0 ,0 0 0 to $ 2 1 0 ,0 0 0 ,0 0 0 ,0 0 0 , As o f Ju n e 30,
1943, th e u n u sed b o rro w in g a u t h o r i s a t i o n u n d e r th e l i m i t a t i o n was
$ 6 9 ,5 3 1 ,0 0 0 ,0 0 0 , a s shown by th e f o llo w in g s ta te m e n t#
10 STATUTORY DEBT LIMITATION
AS OF JUNE 30, 1943
-
\
S e c tio n 21 o f th e Second L i b e r ty Bond A c t, as am ended, p ro v id e d t h a t th e
f a c e am ount o f o b l i g a t i o n s is s u e d u n d e r a u t h o r i t y o f t h a t A c t, " s h a l l n o t ex ceed
in th e a g g re g a te # 210 , 000 , 000,000 o u ts ta n d in g a t an y one tim e ."
Th© f o llo w in g t a b l e shows th e f a c e amount o f o b l i g a t i o n s o u ts ta n d in g and th e
f a c e amount w hich can s t i l l be i s s u e d u n d e r t h i s l i m i t a t i o n s
T o ta l f a c e amount t h a t may be
o u ts ta n d in g a t any one tim e
#210,000,000,000
O u ts ta n d in g as o f Ju n e 30 , 1943:
In te re s t-b e a rin g s
Bonds T re a su ry
# 5 7 ,5 2 0 ,4 6 7 ,9 0 0
S a v in g s ( M a tu r ity
v a lu e )-*
2 6 ,1 9 5 ,1 5 8 ,5 5 0
D e p o s ita ry
2 2 6 ,1 6 5 ,2 5 0
A d ju s te d S e r v ic e
722, 06 0 .1 5 7
T re a s u ry n o te s
C e rtific a te s o f
In d e b te d n e s s
T re a s u ry B i l l s
( M a tu r ity v a l u e )
# 8 4 ,6 6 3 ,8 5 1 ,8 5 7
2 2 ,7 5 8 ,8 8 9 ,5 2 5
2 0 .8 3 6 .6 8 5 .0 0 0
1 1 .8 6 3 .9 1 1 .0 0 0
- 5 5 ,4 5 9 ? 4 8 5 ,52ft
# 1 4 0 ,1 2 3 ,3 3 7 ,3 8 2
M atu red o b l i g a t i o n s , on
w hich i n t e r e s t h a s c e a se d
B e a rin g no i n t e r e s t (U*S,
S a v in g s sta m p s)
1 3 2 ,3 9 6 ,4 2 5
-213.1.349,93.5
Face amount o f o b l i g a t i o n s
i s s u a b l e u n d er above a u t h o r i t y
1 4 0 ,4 6 9 ,0 8 3 .7 4 2
#
6 9 ,5 3 0 ,9 1 6 .2 5 8
R eco n cilem en t w ith D a ily S ta te m e n t o f th e U n ite d S t a t e s T re a su ry
June 30, 1943
T o ta l f a c e amount o f o u ts ta n d in g p u b l i c d e b t o b l i g a t i o n s
# 1 4 0 ,4 6 9 ,0 8 3 ,7 4 2
is s u e d u n d e r a u t h o r i t y o f th e Second L ib e r ty Bond A c t,
D educt, u n e a rn e d d is c o u n t on S av in g s bonds ( d i f f e r e n c e
b e tw e e n 'c u r r e n t re d e m p tio n v a lu e and m a tu r it y v a lu e )
Add o th e r p u b lic d e b t o b l i g a t i o n s o u ts ta n d in g b u t n o t
s u b j e c t to th e s t a t u t o r y l i m i t a t i o n :
I n t e r e s t - b e a r i n g (P re-W ar, e t c . )
# 1 9 5 ,9 6 0 ,4 2 0
M atured o b l i g a t i o n s on w hich
i n t e r e s t h a s c e a se d
8 , 103,665
B earin g no i n t e r e s t
9 6 1 ,9 3 4 ,510
T o ta l g ro s s d e b t o u ts ta n d in g as o f June 30, 1943
^A pproxim ate m a t u r i t y v alu e* p r i n c i p a l amount ( c u r r e n t
re d e m p tio n v a lu e ) a c c o rd in g to p r e li m i n a r y p u b li c d e b t
s ta te m e n t # 21 , 256 , 166 , 543 *
4 .9 3 8 ,9 9 2 .0 0 7
135, 5 3 0 ,0 9 1 ,7 3 5
_ J l , 1 6 5 ,9 9 8 , 595
# 1 3 6 ,6 9 6 ,0 9 0 ,3 3 0
■ ’v
-
11
-
THE GUARAITOSBD DEBT
£h$ c o n tin g e n t l i a b i l i t i e s o f th e Government on a c c o u n t o f o u t
s ta n d in g m ark et is s u e s o f o b l i g a t i o n s o f g o v ern m e n tal c o r p o r a tio n s and
c r e d i t a g e n c ie s , g u a r a n te e d a s to p r i n c i p a l an d i n t e r e s t , d e c re a s e d
from $ 4 ,5 6 8 ,0 0 0 ,0 0 0 on Ju n e 3 0 , 1 9 4 2 , to $ 4 ,1 0 0 ,0 0 0 ,0 0 0 on Ju n e 30,
1943, a d e c r e a s e o f $ 4 6 8 ,0 0 0 ,0 0 0 * D u rin g t h i s p e r io d th e s e c u r i t i e s
o f g o v ern m e n tal c o r p o r a tio n s and c r e d i t a g e n c ie s h e ld d i r e c t l y by
th e T re a s u ry in c r e a s e d from $ 4 ,0 7 9 ,0 0 0 ,0 0 0 to $ 7 ,5 3 5 ,0 0 0 ,0 0 0 , an
i n c r e a s e o f $ 3 ,4 5 6 ,0 0 0 ,0 0 0 * The p o l i c y announced i n O c to b e r, 1941,
u n d e r w hich th e fu n d s n eed ed by g o v ern m e n tal c o r p o r a tio n s a r e prg£v id e d by th e T re a s u r y , in l i e u o f h a v in g su ch c o r p o r a tio n s s e l l t h e i r
o b l i g a t i o n s in th e m a rk e t,w as c o n tin u e d d u r in g th e f i s c a l y e a r 1943*
A s ta te m e n t o f g u a r a n te e d o b l i g a t i o n s a s o f Ju n e 3 0 , 1942, and
Ju n e 30, 1943, i s a s f o l l o w s t
*
ilf
-
12
-
STATEMENT OF AMOUNT OF OUTSTANDING OBLIGATIONS
GUABANt EED AS TO PRINCIPAL" AND INTEREST.BY THE
UNITED STATES AS 6 F JUNE 30, 19^2 AND
JUNE 30 , 19%3
(In m illio n s of d o lla r s )
19^2
M arket I s s u e s ;
Commodity C r e d it C o rp o ra tio n .........
F e d e r a l Farm M ortgage C o rp o ra tio n .
F e d e r a l H ousing A d m i n i s t r a t i o n ,. ..
F e d e r a l p u b li c H ousing A u th o r it y ..
I s s u e s h e ld "by th e T re a s u ry ;
Commodity C r e d it C o r p o r a t i o n . . . . . .
F e d e r a l Farm M ortgage C o rp o ra tio n .
F e d e r a l p u b li c H ousing A u th o r it y .,
Home Owners* lo a n C o r p o r a t i o n . . , . ,
R e c o n s tr u c tio n F in a n c e C o rp o ra tio i
T en n e ssee V a lle y A u t h o r i t y . . . . . . .
19^3
U80
9U1
932
23
Ilk
13^3
I n c r e a s e (-/-)
D ec re a se ("-)
-
221
12
3
.. llU
• 1.563
1-1,219
1,539
1,011
- 2k
- 208
.
U.566
k t100
-
.
Uoo
1,950
-
-
U68
57
283
212
5,033
57
1.550
263
-A
9
339
4- 2,499
-
4,079
7,535
-h 3,456
. 8,6^7
u .635
V- 2,988
.
263
.
274
♦
551
» 2,534
,
LOANS AND INVESTMENTS
The G overnm ent’ s i n t e r e s t i n th e n e t a s s e t s (e x c lu d in g c a s h on
d e p o s it w ith th e T r e a s u r e r o f th e U n ite d S t a t e s ) r e p r e s e n t e d by lo a n s ,
o th e r in v e s tm e n ts and p r o p e r t i e s o f g o v e rn m e n ta l c o r p o r a t io n s and c r e d i t
a g e n c ie s am ounted to $ 1 2 ,7 9 7 ,0 0 0 ,0 0 0 a s o f May 31* 19^3» a s com pared w ith
$6, 2 0 ^ ,0 0 0 ,0 0 0 a s o f May 31, 19*+2, a n e t i n c r e a s e o f $ 6 ,5 9 3 * 0 0 0 ,0 0 0 .
-1 3 TREASURY FINANCING OPERATIONS
During the f i s c a l year 19^3 p u b lic is s u e s o f Treasury c e r t i f i c a t e
o f in d eb ted n ess, Treasury n o tes, Treasury bonds and U nited S ta te s
Savings bonds (in clu d in g discount accrued during the year) aggregated
$62,380,000,000 as compared w ith $ 2 2 ,8 86,000,000 during 19^2, as
follow s?
F is c a l year
F is c a l year
19^3
19^2
( i n m i l l i o n s o f d o lla r s )
C e r tific a te s * f indebtedness
$ 18,067
$
3,096
3, 7^9
1,621
8,759
M 39
Treasury bonds
19» 890
7 ,9 ^ 8
U. S* Savings bonds
11,91^
6,082
Treasury notes
. . . . . . . . **. *• *• .
Treasury Savings n otes (ta x s e r i e s ) , .
Total .•
62,380
2 2 ,8 8 6 ,
- Ik The fo llo w in g t a b l e shows d e t a i l s o f p u b li c i s s u e s o f T re a su ry c e r t i f l c a t e s o f in d e b te d n e s s , T re a s u ry n o te s , T re a s u ry bonds, and U n ite d S t a t e s
S a v in g s bonds o ffe re d , by th e T re a s u ry d u r in g th e f i s c a l y e a r 19*4-3, in c lu d in g
r e f u n d in g o p e r a tio n s ?
Issu e
Date
M aturity
Date
8/15/U 2
9/ 2l/*4-2
ll/2/*4-2
12/l/*42
a/i/i+ 3
U/15/&3
5/ 1 /U3
8/ 1 /U3
5 /lA 3
1 1 /1 /4 3
X2/X/U3 .
2/X/UU
*4/l/*4*4
5/X/UU
Rate
Race Amounts Issued
(In m illio n s )
' Cash
Exchanges
T otal
Treasury
C e r tific a te s
o f Indebtedness
O-X9U3
D-19^3
IM.9U3
A-19****
B**19*4*4
C-l 9*4*4
7 /8 $
. 65$
7 /8 $
7 /8 $
7/S5S
7 /s $
im
—
1.655 2/
$ 1,609
$ 1,609
1.506
1.506
2,035 ‘
2,035
3,800
3,800
2,211
2,211
5,251
5,251
1,655
Treasury
Uotes
C-19U5
b-19*+6
9/25/>+2
i o / 15/ t e l,/
3/ 15/U5
X2/X5A6
7 /1 5 A 2
8/ 3 A 2 2 /
10/ 19/U2
12/l/*42
12/l/*42
U/X5/U3
t y l5 A 3
12/X 5/ 5X
6/ 15/67
3 /1 5 /5 2
12/ 15/68
6/15/*48
9/ 15/52
6/ 15/69
i-im
1 - 1 / 2$
l , 6o6
2,1*42
1,606
2,1*42
—
2,098
1.236
1,963
2,831
3,062
U, 939
3.762
2,098
1,236
1.963
2,831
3,062
U, 939
3.762
68
8,690
8,759
11,916
11,9 16
60,657
t'62, 380
_
—
Treasury
Bonds
19^9-51
1962-67
1990-52
1963-68
19*4-8
1950-52
196*4-69
Treasury Savings Rotes (ta x s e r ie s ) *4-/
2$
2- 1 / 2$
2$
2- 1 / 2$
i-3 /¥
2$
2- 1 / 2$
*r--
U nited S ta te s Savings Bonds 5 /
T otal
1,72*4
l / A d d i t i o n a l to 6/5/*42 i s s u e ,
^ /E x ch a n g ed f o r $ 1 , 373*5 o f , 65$ C e r t, o f I n d e b t, and $ 2 8 1 ,8 o f CCC n o te s .
3/A d d it io n a l to 5 /5 /^ 2 i s s u e .
^ /R e d e m p tio n s d u r in g tfee y e a r w ere (1 ) $11*4,9 f o r c a sh , and (2 ) $*4,09*4.*4
r e c e iv e d f o r payment o f ta x e s ,
5 /l h c l u d i n g d is c o u n t a c c ru e d d u r in g th e y e a r . R edem ptions d u r in g th e y e a r
were $8*4-8,3*
- 15 -
The computed rate of interest on such issues during the fiscal
year 194-3 was 1.70$ as compared with the computed rate
of 1.78$ on
the issues during the fiscal year 1 9 4 2 .
The amount of Treasury bills outstanding increased from
£2,508,000,000 on June 30, 1942 to £>11,864,000,000 on June 30 , 1 9 4 3 ,
, , T1®
redae»ed for cash 7 Treasury issues amounting to
#4*old,000,000 and paid off or refunded 4 guaranteed issues of
governmental corporations amounting to £6 4 2 , 000, 000, whichmatured or
were called for redemption during the fiscal year 19 4 3 i
16 The Treasury purchased obligations of governmental corporations for the
purpose of providing such corporations with cash funds to enable them
to retire these obligations which were originally issued in the market#
The following table summarizes these issues?
Cash Re
Bate
Issue
Matured Amount demption Exchange
' (In millions of dollars)
Public debt obligations?
Certificates of Indebtedness?
1 /2 # Series A -19 4 2 ------------------ - - - U/l/43
$1,507 $1,5071/
5 /8 # Series A-1943
2/1/43 1,588 l,588l/
Treasury Notes?
«*
342
2# Series B-1942 «■»****-**-»*« '■•* 9/15/43 342
P*
1-3/4# Series C-1942 - - - - - - 12/15/42 232
232
3/4# Series D-1943 - * ***- * *.- 3/15/43
66
66
1-1/8# Series A-1943 ** <*** * - - - 6/15/43 629
629
Treasury Bonds?
3 - 3 /8 # of 1943-47 -------------------- 6/15/43 454§/ 454
Subtotal - - - - - - Guaranteed obligations?
Commodity Credit Corporation
3/4# Notes, Series P - - - - - - Home Owners1Boan Corporation
2-1/4# bonds, Series C
r- - - - - Reconstruction Finance Corporation
1# note, Series S- - - - -- -- 7/8# note, Series IT - - - - - - Subtotal - - - - - Total - - - - - - - -
4,818
5/1/43
7/1/42
7/l/43
10/15/42
4,818
7
289
29
29
4
4
320
320
360
642
$5,460 $5,178
2823/
—
282
$282
1J Newsecurity issued simultaneously for purpose of refunding maturing
issues*
2/ Called for redemption*
3/ Proceeds of maturing security applied in payment for newissue —
in effect, an exchange and so treated in this statement.
- 17 The p ro g ram f o r th e s a l e o f U n ite d S t a t e s S a v in g s B onds, w hich was
g r e a t l y a c c e l e r a t e d a f t e r th e b e g in n in g o f h o s t i l i t i e s i n Decem ber, 1941*
.has been c o n tin u e d and d e v e lo p e d i n l i n e w ith th e T r e a s u r y 's em p h asis on
maximum s a l e s o f s e c u r i t i e s to in d i v id u a l s *
The f o llo w in g t a b l e shows c a sh r e c e i p t s and re d e m p tio n s d u rin g 1943 as
com pared w ith p r i o r y e a r s and th e c u r r e n t re d e m p tio n v a lu e o f o u ts ta n d in g
S a v in g s bonds a t th e end o f each f i s c a l y e a r s in c e 1935*
___________________,_____ _______ f i n m i l l i o n s o f d o l l a r s ) ______________________
F is c a l y ear
O u ts ta n d in g a t
o r m onth
R e c e ip ts 1 /
R edem ptions
end o f p e r io d 2 /
1935
1936
1937
19 3S
1939
194-0
1941
1942
1943
63
265
520
505
712
1 ,1 5 1
1 ,5 5 7
6 ,0 8 2
11,9 1 6
2 2 ,7 7 0
1
11
3^
67
82
114
14S
207
848
1 , 514'
62
316
800
1 ,2 3 8
1 ,8 6 8
2 ,9 0 5
4 ,3 1 4
1 0 ,1 8 9
2 1 ,2 5 6
F i s c a l le a ] r 1943 - By m onths
1942 - J u l y
Aug*
£)Gpt#
Oct*
Nov*
Dec.
915
705
762
942
741
1 ,0 2 6
^>
32
34
40
43
55
1 1 ,0 7 8
1 1 ,7 5 1
1 2 ,4 7 9
1 3 ,3 8 1
1 4 ,0 7 9
1 5 ,0 5 0
1943 - J a n .
F eb .
Mar,
A p r il
May
Ju n e
1 ,2 5 9
898
954
1 ,4 7 9
1 ,3 4 4
890
63
76
131
103
104
141
16,246
1 7 ,0 6 7
1 7 ,8 9 1
1 9 ,2 6 7
2 0 ,5 0 7
2 1 ,2 5 6
1/
2/
In c lu d e s a c c ru e d d is c o u n t
C u rre n t re d e m p tio n v a lu e
1 Q.n un d e r s e c t i o n 5 o f th e P u b lic D ebt A ct o f 1^42, a p p ro v e d March 28
<fciQA, ^ ^ o eo n n <3a^U«y assum ed th e l i a b i l i t y o f th e P o s t a l S av in g s System f o r
v ,0 0 ° ° f P o s t a l S av in g s stam ps o u ts ta n d in g a t th e c l o s e o f b u s in e s s
ep tem b er 3 0 , 1 9 42. The P o s t a l S av in g s System th e re u p o n d is c o n t in u e d th e
is s u a n c e o f P o s t a l S av in g s stam p s and t h e r e a f t e r U n ite d S t a t e s S av in g s
stam p s w ere is s u e d by th e T re a s u ry a s a p u b l i c d e b t o b l i g a t i o n o f th e
u n it e d S t a t e s . T o ta l s a l e s o f su ch stam ps by th e T re a s u ry d u r in g th e
B alan ce o f th e f i s c a l y e a r 1943 am ounted to $ 4 1 0 ,0 0 0 ,0 0 0 , w h ile redem p
t i o n s o f stam ps am ounted to $ 3 9 1 ,0 0 0 ,0 0 0 , o f w hich a b o u t 86 p e r c e n t
w ere in exchange f o r S av in g s B o n d s.
oOo
Insert A.
's'Sv
In making the announcement, Secretary Morgenthau said that
under the direction of such men as Mr. Koore, Ohio has already
established an excellen t War Bond record^ Between May 1, 1941^
and May 31, 1943 the people of Ohio had ihvested$B67 m illions
in £ bonds ajfcoac and $335 m illions in P and 0 bonds. He ft/rther
stated that<# 95$ of QHio ff>rms employing 100 or more people are
enrolled in the payroll savings plan — a to ta l of 10,000 firms
in a l l .
M
This is a fin e record,MMr. Morgenthau said. wHowever,
lik e a ll the fin e records that have been established up to this
time, i t w ill have to be improved i f we are to reach our goal
in the la s t s ix months of th is year. I am confident that Mr. Moore
and the men working with him w ill see the job through, and w ill
continue to keep Ohio near the top of the l is t ."
from R e lig io u s O b je c to r s , F e b ru a ry th ro u g h May, 19^3
an d t o t a l to d a t e , b y S t a t e s
•
%
:
February
March
State
191+3
191+3
$
NewiMexlop.. ....... $
1
,6
5
0
New- Y
orki . . . . . . .
1,507
. —
800
North Cardlina . .
North Dakota . . . .
390
369 1
1 2 ,9 1 0
Ohio ........... .. 15,150
':'v 2 , 606
650
Oklahoma . . . . . . .
1,562
Oregon..... ..
*D0
Pennsylvania .... 2 6 ,1* 2
27.
>+36
—
—
Rhode Island . . . .
South Carolina . .
2 ,7 2 2
S outh D
akota. . . . . 2,100
—
Tennessee , ...... ..
/Tturas . . . . . . . . . . . •
Th. 'h ..........................
‘Vermont ...................
■ V ir g in ia .............. ..
W ashington . . . . . .
West V ir g in i a . . .
W isco n sin ............ ..
Wyoming ...................
—
-
2,050
2,100
100
T o t a l ............ .. $ 11+5,209
April
19 I
4.3
;
**
3 .0 0 9
100
1,218 •
67,320
8 ,1+23
1 .1+
71+
1^0,665
56
-
U,5 U6
*
N ote:
2,807
800
- 192
12,872
1,053
5 .3 0 s
107,352
-
$
28*23
3.200
7 .6 1 9
2 5 3 ,* 2 *
2 7 ,6 8 8
20**
il-68,69-2 *
56
56
+
6 ,1 0 6
1 2 ,1 7 5
1 ,20Q
300
100
906
178
—
—
100
1#:
2 ,5 6 3
—
356
2,855
1,011
100
200
-
19,075
1 ,8 0 0
27*
,
500
-
3 , 8^6
2.721+
-
52.676
3 ,6 3 5
3 , 271+
1,100
—
$ 115,520
$ 333 . 21+9
$ 23.U,608
50
—
6
O f f ic e o f th e S e c r e t a r y o f th e T r e a s u r y .
S o u rce:
191+3
{♦
$
$
Tbtaly
Aug. 19^+2M
ay 19^3
May
$ 1 , 70++,659
Ju n e 2 6 , l ^ Uj T
M onthly t a b u l a t i o n s from th e N a tio n a l S e rv ic e Boaxd f o r R e lig io u s
O b je c to r s , W ash in g to n , D. C.
C u m u lativ e t o t a l re d u c e d due to r e f u n d s .
'F ig u r e s have b een ro u n d ed and w i l l n o t n e c e s s a r i l y add to t o t a l s .
WA ¥;FD FIELD DIRECTORS OFFICE
OHIO WAR FINANCE COMMITTEE 7 -1 -4 3
ATTENTION MR. DELEHANTY
,
^ U a ,.
AS PER TELEPHON CONVERSATION WITHYOU, ^THE FOLLOWING IS SUBMITTED FOR
WIRE 9NMMBP SERVICE RELEASE TOMORROW MORNING AFTER NINE A M SUBJECT
ElRST TO THE APPROVAL OF MR. TED GAMBLE
WASHINGTON, D. 0-.
AA
/THE APPOINTMENT OF ROY D. MOORE. HEAD OF BRUSH-
MOORE NEWSPAPERS* CANTOWy—OHIO AS STATE CHAIRMAN OF THE NEW OHIO
WAR FINANCE COMMITTEE WAS ANNOUNCED TODAY BY SECRETARY OF THE TREASRY
HENRY MORGENTHAU, JR .
-
i
MR. MOORE, ADMINISTRATOR OF THE STATE WAR SAVINGS STAFF DURING THE'
PAST TWO YEARS, WILL CONTINUE SERVING AS A DOLLAR.A YEAR APPOINTEE.
THE NEW WAR FINANCE COMMITTEE WILL MERGE THE FORMER WAR-ShWMBBBe
SAVINGS STAFF, IN OPERATIO^IN THE STATE SINCE MAY 1941, AND THE
VICTORY FUND COMMITTEE, ORGANIZED LAST SUMMER TO HANDLE THE SPECIAL
WAR LOAN DRIVES, ACCORDING TO SECRETARY ■
0 M
B
' MORGENTHAU.
A MEETING IS TO BE HELD TODAY AT THE FEDERAL RESERVE BANK IN CLEVELAND
TO‘FORM A STATE-WIDE EXECUTIVE COMMITTEE TO WORK WITH MR. MOORE IN
THE NEW
ORGANIZATION.
AMOtJNG THOSE ATTENDING WILL BE
TREASURY DEPARTMENT OFFICIALS ANDpEfPRESENATIVES OF BOTH THE
VICTORY hjND AND WAR SAVINGS COMMITTEES.
UNQUOTE
SINCERE THANKS FOR YOUR PERSONAL ATTENTION TO THIS
HAROLD H BREDLOW
WILLi REFER
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
F rid a y , J u ly 2 , 19*4-3.
P re s s S e rv ic e
No*
3 7 -3 7
The app o in tm en t o f Roy D. Moore o f C anton, Ohio, head o f th e
Brush-M oore N ew spapers, as S ta te Chairman o f th e new Ohio War
F in an c e Committee was announced to d ay by S e c r e ta r y o f th e T re as
u ry Henry M orgenthau, J r ,
In making th e announcem ent, S e c r e ta r y M orgenthau s a id t h a t
u n d er th e d i r e c t i o n o f such men as Mr, Moore, Ohio has a lre a d y
e s t a b l i s h e d an e x c e ll e n t War Bond r e c o r d and I s one o f th e te n
to p s t a t e s in s a l e s , Between May 1, 1941, and May 31, 1943, th e
p e o p le o f Ohio had in v e s te d $667 m illio n s In E bonds and $335
m illio n s in F and Q- bon d s. He f u r t h e r s t a t e d t h a t 95 p e rc e n t o f
Ohio firm s em ploying 100 o r more p eo p le a re e n r o lle d in th e Pay
r o l l S avings P la n
a t o t a l o f 10,000 firm s in a l l ,
'‘T h is i 8 a f in e r e c o r d , " Mr, M orgenthau s a id , "However,
l i k e a l l th e f i n e re c o r d s t h a t have been e s ta b li s h e d up to t h i s
tim e , i t w i l l have to be Improved i f we a re to re a c h o u r g o a l in
th e l a s t si& months o f t h i s y e a r. I am c o n f id e n t t h a t Mr, Moore
and th e men w orking w ith him w i l l see th e jo b th ro u g h , and w ill
c o n tin u e to keep Ohio n e a r th e to p o f th e l i s t . "
Mr. Moore, A d m in is tra to r o f th e S ta te War Savings S ta f f
d u rin g th e p a s t two y e a rs , w i l l c o n tin u e s e rv in g as a d o l l a r - a y e a r a p p o in te e .
The new War F in an ce Committee w i l l merge th e form er War
S avings S t a f f , in o p e r a tio n in th e s t a t e s in c e May 1941, and th e
V ic to ry Fund Com m ittee, o rg a n iz e d l a s t summer to h an d le th e s p e
c i a l war lo a n d r iv e s , a c c o rd in g to S e c r e ta r y M orgenthau,
A m eetin g i s to be h e ld today a t th e F e d e ra l R eserve Bank
in C le v e la n d to form a s ta te - w id e e x e c u tiv e com m ittee to work
w ith Mr, Moore in th e new o r g a n iz a tio n . Among th o se a tte n d in g
w i l l be T re a su ry D epartm ent o f f i c i a l s and r e p r e s e n t a t i v e s o f b o th
th e V ic to ry Fund and War S avings C om m ittees.
- 0 O0-
~ 2 ~
and our u n ifie d o rg a n iza tio n i s s e t t in g out to r a ise more than twice as
much money in the l a s t s ix months o f th is year as we r a ise d in the fir s t
s ix months.
Since th e American p eop le in v e s te d { j^ b illio n d o lla r s in Bonds
during the f i r s t s i x months, it * s easy to see th a t the job we are laying
out fo r o u rselv es w i l l succeed on ly i f we have good lea d ersh ip a l l along
the lin e *
I am co n fid en t th a t in men lik e Ted Gamble, we have that
lea d ersh ip in Washington* ^
In accep tin g the appointment, Mr* Gamble emphasized th a t the credit
fo r s e l l i n g the huge amount o f Bonds already s o ld , and fo r b u ild in g up
the P a y r o ll Savings Plan to th e p o in t where more than 27 m illio n people
are in v e s tin g more than $^-25 m illio n s a month —- Hth e c r e d it fo r a l l this
goes to the hundreds of thousands o f v o lu n teers who have taken the respon
s i b i l i t y o f s e l l i n g Bonds to th e ir fr ie n d s and n eigh b ors.
We owe a great
d e a l, to o , to the commercial fir m s, the r a d io , newspapers and magazines
which have co n trib u ted time and space and ta le n t to promoting the sale of
continued
War Bonds. I am co n fid ent th a t w ith th e/c o o p e r a tio n and help o f a l l these
groups, we w i l l be able to g e t the money we n e e d .”
Secretary o f thebreasury Morgenthau today announced the appointment
of Ted R. Gamble, A ssista n t to the S ecreta ry , as N a tio n a l D irector of the
Treasury Department's War Finance D iv is io n .
In t h is c a p a c ity , Mr. Gamble
w i l l he in charge o f the s a le o f War Savings Bonds, and w i l l organize the
forthcom ing Third War Loan drive s ta r tin g September 9*
Mr. Gamble has been a f f i l i a t e d w ith the Bond s a le jo r g a n iz a tio n in
Washington sin c e Decembe^ 19*+1, when he became Consultant to the Secretary
o f the Treasury and headed the N ation al War Bond Pledge Campaign.
Immediately fo llo w in g t h is campaign, in Mav 19 H2 , Mr. Gamble was
appointed A ssista n t to the S ecreta ry , and wa^given su p erv isio n o f the
f i e l d org a n iza tio n s o f the War Savings S ta ff*
Before coming to Washington,
Mr. Gamble had organized the T reasury's War Bond program in Oregon and
served as Oregon' S ta te A dm inistrator o f the War Savings S t a ff from June to
December, 19^1.
Mr. Gamble, now 37» waaborn in Nevada, Missouri^ and attended Washington
S ta te U n iv e r sity .
He la t e r became an e x e c u tiv e in the th ea tre business
on the West Coast, and at p resen t owns th e a tr e s in and near Portland.
In 1939* he was s e le c te d as the f i r s t c it iz e n o f P ortlan d, and last
^ --- ^
year was chosen by the U nited S tate? Junior? Chamber o f Commerce as one of
_,„f-^.m
m
********’**
1<
the ten outstan din g young men in the U nited S ta te s fo r 19^2.
In announcing the new appointment, S ecreta ry Morgenthau said'"In my
estim a tio n , Ted Gamble i s an id e a l man to organize and le a d our n ew lp e*e»/^
•o r g a n i m
t i o n .
We have merged the War Savings S ta ffs and
the V ictory Fund Committees in every s t a t e in to one War Finance Committee,
TREASURE DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE
F rid a y , J u ly 2, 1943
P re s s S e rv ic e
No.
3 7 '5
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
F rid a y , J u ly 2, 19*4-3.
P re s s S e rv ic e
No. 37-38
S e c r e ta r y o f th e T re a su ry M orgenthau today announced th e
ap p o in tm en t o f Ted R, Gamble, A s s is ta n t to th e S e c r e ta r y , as
N a tio n a l D lr e o to r of th e T r e a s u r y ’D ep artm en t' s War F in an ce
D iv is io n ,
In t h i s c a p a c ity , Mr, Gamble w i l l be in ch arg e o f
th e s a le o f War S av in g s Bonds, and w i l l o rg a n iz e th e f o r t h
coming T h ird War Loan d r iv e s t a r t i n g Septem ber 9 .
Mr. Gamble has been a f f i l i a t e d w ith th e Bond s a le s o r g a n i
z a tio n in W ashington s in c e December, 19^1 , when he became Con
s u l t a n t to th e S e c r e ta r y of th e T re a su ry and headed th e Na
t i o n a l War Bond P led g e Campaign.
Im m ed iately fo llo w in g t h i s cam paign, in May, 19^2,
Mr. Gamble was a p p o in te d A s s is ta n t to th e S e c r e ta r y , and was
g iv e n s u p e r v is io n o f th e f i e l d o r g a n iz a tio n s o f th e War S avings
S t a f f . B efo re coming to W ashington, Mr. Gamble had o rg a n iz e d
th e T r e a s u r y 's War Bond program in Oregon and se rv e d as Oregon
S ta te A d m in is tra to r o f th e War S avings S ta f f from June to
December, 19^1 .
Mr. Gamble, now 37, was b o rn in Nevada, M is s o u ri, and a t
te n d e d W ashington S ta te U n iv e r s ity , He l a t e r became an ex e cu
t i v e i n th e t h e a t r e b u s in e s s on th e West C o ast, and a t p r e s e n t
owns t h e a t r e s in and n e a r P o r tla n d ,
*t I n *939, Me was s e le c te d as th e f i r s t c i t i z e n o f P o r tla n d ,
andi l a s t y e a r was chosen by th e U n ite d S ta te s J u n io r Chamber
of' Commerce as one o f th e te n o u ts ta n d in g young men in th e
U n ite d S t a t e s f o r 1942.
In anno u n cin g th e new a p p o in tm e n t, S e c r e ta r y M orgenthau
s a id :
"In my e s tim a tio n , Ted Gamble i s an id e a l man to o rg a n
iz e and le a d o u r new War F in an ce D iv is io n . We have merged th e
War S av in g s S t a f f s and th e V ic to ry Fund Com mittees in ev ery
S ta te in t o one War F in an ce Com m ittee, and o u r u n i f i e d o r g a n i
z a tio n i s s e t t i n g c u t to r a i s e more th a n tw ic e as much money
f
-
2 -
in th e l a s t s i x months o f t h i s y e a r as we r a i s e d in th e f i r s t
s ix m onths. S in ce th e American p eo p le in v e s te d seven b i l l i o n
iI? ®onds d u r ln e th e f i r s t s i x m onths, i t ' s easy to see
t h a t th e Job we a re la y in g o u t f o r o u r s e lv e s w i l l su cceed o n ly
n g th
r jaed- e r s1 h am
tt hL art% inn aVe
men l i k e Ted Gamble, Wealo
have
t h ea t l lle
ip cino n fid e n t
W ashington,"
*
^
aPPO lntfhent, Mr, Gamble em phasized t h a t
s e l U ?§
huge amount Of Bonds a lre a d y s o ld ,
m / h i
th e V^ ro11 S avings P la n to th e p o in t where
more th a n 27 m illio n p e o p le a re in v e s tin g more th a n $525 m ilJT th e c r e d i t f o r a l l t h i s goes to th e hundreds
or th o u sa n d s o f v o lu n te e r s who have ta k e n th e r e s p o n s i b i l i t y
s e l l i n g Bonds to t h e i r f r ie n d s and n e ig h b o rs . We owe a g r e a t
a , to o , to th e com m ercial f irm s , th e r a d io , new spapers and
m agazines w hich have q o n tr ib u te d tim e and sp ace and t a l e n t to
p ro m o tin g th e s a le of War Bonds. I am su re th a t w ith th e co n tin u e d o o o p e ra tio n and h e lp o f a l l th e s e g ro u p s, we w i l l be a b le
to g e t th e money we n e e d ."
-oOo
1
Mr* R o b e rts i s a n a t i o n a l l y known f ig u r e n o t o n ly
th ro u g h h i s prom inence In th e In s u ra n c e b u s in e s s b u t a ls o
th ro u g h h i s p re s id e n c y o f th e Community C h ests and
C o u n c ils, I n o . # a p o lic y -m a k in g body f o r 600 Community
C h ests th ro u g h o u t th e U n ite d S t a t e s .
He fo rm e rly was v i c e - p r e s id e n t and g e n e ra l co u n sel o f
th e M innesota M utual L if e In su ra n c e Company o f S t . P a u l.
A g ra d u a te o f X&le Law S o h o o l, Mr. R o b e rts h as won
a r e p u ta tio n f o r dynamic q u a l i t i e s o f le a d e r s h ip which
prom ise much f o r h is d i r e c t i o n o f P e n n sy lv a n ia war fin a n c e
a ffa irs •
" I , am d e lig h te d t h a t Mr. R o b e rts h as a g re e d to share
th e heaVy r e s p o n s i b i l i t i e s idiioh war f in a n c e problem s
p la c e on u s # * S e c re ta ry K orgenthau s a i d .
•The endorsem ent o f him by Mr. W illiam s I s ty p i c a l
o f th e su p p o rt a s s u re d him by a l l th o s e s p le n d id
P e n n sy lv a n ia n s who have a id e d th e T re a su ry in th e p a s t ,
We f e e l t h a t he w i l l g e t r e c o r d - b r e a k in g r e s u l t s * "
—o—
S ile r
'* -V"';V•'*‘.'"
rSyT,lr ' v'
-
^
■
B
P
S
P f lp fe g ^
| | vv&i
" ■-I
TREASURY DEPARTMENT
W ashington
S*Ki
FOR IMMEDIATE RELEASE
^ r l d a y . J u ly
P r e s 8 S erv ice
No.
J 7 - 3 ?
S e c r e ta r y o f th e T re a su ry Morgenth&u to d a y announced
fivV-'
th e ap p o in tm en t o f E.A. R o b e rta , P r e s id e n t o f t h e F id e lity
M utual L ife In su ra n c e Company
o f P h ila d e lp h ia , as chairman
o f th e new S ta te War F inance Committee o f P e n n sy lv a n ia .
The new com m ittee I s a m erger o f th e form er S ta te War
S avings S t a f f and th e fo rm e r V ic to ry Fund Committee o f the
T h ird F e d e ra l R eserve D i s t r i c t . I t w i l l have ch arg e of the sale
o f War Bonds in P e n n sy lv a n ia and o f th e S t a t e 's p a r tic ip a tin g
In th e T h ird War Loan D riv e opening Septem ber 9 . S e c re ta ry
M orgenthsu s a id Mr. R o b erts would have f u l l a u t h o r it y and
r e s p o n s i b i l i t y f o r th e o r g a n is a tio n and I t s o p e r a tio n s .
P e n n s y lv a n ia 's war fin a n c e l e a d e r s h a i l e d th e appointment
as an e x c e l l e n t o n e.
"You c o u ld n o t have made a b e t t e r c h o ic e o f a c h ie f fo r
P e n n s y lv a n ia 's f u r t h e r b o n d-buying supportjfof th e n a tio n 's
war e f f o r t . * r e a d a te le g ra m t o th e S e c r e ta r y from A lfre d H.
W illiam s, P r e s id e n t o f th e F e d e ra l R eserve Bank o f P h ila d e l
p h ia and h im s e lf a v a l i a n t a s s i s t a n t to th e T reasu ry in the
r a i s i n g o f th e g r e a t sums need ed to meet war o o st s .
Mr. W illiam s se rv e d as chairm an o f th e T h ird FederaJL Reserve
D i s t r i c t V ic to ry Fund Com m ittee.
«*•**-*
J/ * y
^
5"
-*
4
F u rth e ra n c e o f th e P a y r o ll S av in g s P lan i n Pennsylvania
w i l l be one of th e new c o m m itte e 's u n d e r ta k in g s . High
p e rc e n ta g e marks a lre a d y have been s e t . A r e c e n t check showed
t h a t o f th e S t a t e 's 2, 564 co n c ern s em ploying 100 t o 499
p e rs o n s , 2,45© had p a y r o ll s a v in g s p l a n s . Of 640 concerns
em ploying 500 o r mere p e rs o n s , a l l b u t one had p a y r o ll savings
p la n s .
y*
/A|
j
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
F rid a y , J u ly 2, 19*13.
P re s s S e rv ic e
No. 37-39
S e c r e ta r y of th e T re a su ry M orgenthau to d ay announced th e
appointm ent o f E. A. R o b e rts, P r e s id e n t o f th e F i d e l i t y M utual
L if e In s u ra n c e Company o f P h ila d e lp h ia , as chairm an o f th e new
S ta te War F in an ce Committee o f P e n n s y lv a n ia .
The new com m ittee i s a m erger o f th e fo rm er S ta te War Sav
in g s S t a f f and th e form er V ic to ry Fund Committee o f th e T h ird
F e d e ra l R eserv e D i s t r i c t . I t w i l l have ch arg e o f th e s a le of
War Bonds in P e n n sy lv a n ia and o f th e S t a t e 's p a r t i c i p a t i o n in
th e T h ird War Loan D rive o p ening Septem ber 9- S e c r e ta r y
M orgenthau s a id Mr. R o b e rts would have f u l l a u t h o r it y and r e
s p o n s i b i l i t y f o r th e o r g a n iz a tio n and i t s o p e r a tio n s .
P e n n s y lv a n ia 's war fin a n c e le a d e r s h a i le d th e ap p o in tm en t
as an e x c e ll e n t o n e.
"You c o u ld n o t have made a b e t t e r ch o ic e o f a c h ie f f o r
P e n n s y lv a n ia ’s f u r t h e r bond -b u y in g su p p o rt o f th e n a t i o n ’ s war
e f f o r t , ” r e a d a te le g ra m to th e S e c r e ta r y from A lfre d H.
W illia m s, P r e s id e n t o f th e F e d e ra l R eserve Bank o f P h ila d e lp h ia
and h im s e lf a v a l i a n t a s s i s t a n t to th e T re a su ry in th e r a is in g ,
o f th e g r e a t sums needed to meet war c o s t s . Mr, W illiam s
%
se rv e d as chairm an o f th e T h ird F e d e ra l R eserv e D i s t r i c t V ic to ry
Fund Com m ittee, and a ls o was chairm an o f t h a t d i s t r i c t ’ s War
F in an ce Committee f o r th e Second War Loan D riv e .
F u rth e ra n c e o f th e P a y r o ll S avings P la n in P e n n sy lv a n ia
w i l l be one o f th e new co m m itte e ’s u n d e r ta k in g s . High p e r
c e n ta g e marks a lr e a d y have been s e t . A r e c e n t check showed
t h a t o f th e S t a t e 's 2, 56^ co n cern s em ploying 100 to ^99 p e r s o n s ,
2 ,4 5 5 h ad p a y r o ll sa v in g s p la n e . Of 6^0 co n cern s em ploying $00
o r more p e r s o n s , a l l b u t one had p a y r o ll s a v in g s p la n s .
Mr. R o b e rts i s a n a t i o n a l l y known f ig u r e n o t o n ly th ro u g h
h is p ro m in en ce in th e in s u ra n c e b u s in e s s b u t a ls o th ro u g h h is
p r e s id e n c y o f th e Community C h ests and C o u n c ils, I n c , , a p o l i c y
m aking body f o r 600 Community C h ests th ro u g h o u t th e U n ite d
S ta te s ,
2
He fo rm e rly was v i c e - p r e s id e n t and g e n e ra l co u n sel o f th e
M innesota M utual L if e In s u ra n c e Company o f St* P a u l,
A g ra d u a te o f Y ale Law S chool, Mr. R o b e rts has won a re p u
t a t i o n f o r dynamic q u a l i t i e s o f le a d e r s h ip w hich prom ise much
f o r h is d i r e c t i o n o f P e n n sy lv a n ia war f in a n c e a f f a i r s .
nI am d e lig h te d t h a t Mr. R o b e rts h as a g re e d to sh a re th e
heavy r e s p o n s i b i l i t i e s w hich war fin a n c e problem s p la c e on
u s ," S e c re ta ry M orgenthau s a id ,
"The endorsem ent of him by Mr, W illiam s i s t y p ic a l o f th e
su p p o rt a s s u re d him by a l l th o se s p le n d id P e n n sy lv a n ia n s who
have a id e d th e T re a su ry in th e p a s t . We f e e l t h a t he w i l l g e t
r e c o r d - b re a k in g r e s u l t s , "
g Oo -
il
TREASUHT DSPAHTMSHT
Washington
FOR RELEASE, MORRIHQ SPTSPAPSRS,
Press Service
The Secretary of the Treasury announced la st evening that the tenders for
$1,000,000,000, or thereabouts, of 92-day Treasury b ills to be dated July 7 and
to mature October 7# 1943# which were offered on June 30, 1943# were opened at
the Federal Reserve Banks on July 2*
The d etails of th is issue are as follows:
Total applied for - $1,175,078,000
Total accepted
- 1,001,757,000 (includes $39,993,000 entered on a fixed.
price basis at 99*905 and accepted in full)
Range of accepted bids:
High
Low
Average price
- 99*910 Equivalent rate of discount approx. 0.352$ per anntt
- 99.904
*
« ■
*
"
0*376$ « »
~ 99*904/
"
* *
»
*
0*375$ * «
(93 percent of the amount bid for at the low price was accepted)
Federal Reserve
Bank
Boston
Sew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Applied for
I
23,790,000
808,900,000
26,785,000
15,793,000
12,885,000
3,250,000
155,705,000
29,657,000
5,210,000
19,688,000
13,465,000
59.760.000
11,175,078,000
Total
accepted
$
22,856,OCX)
661,783,000
25,389,000
15,618,000
12,630,000
3,000,000
146,344,000
18,579,000
5,240,000
19,445,000
13,437,000
57.436.000
$1,001,757,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Saturday. M lS S 1943._______
Press Service
3 7 — ‘4-Q
as/
The Secretary of the Treasury announced la st evening that the tenders for
$1,000,000,000, or thereabouts, of 92-day Treasury b ills to be dated July 7 and
to nature October 7, 1943, which were offered on June 30, 1943# were opened at
«11ctO
the Federal Reserve Banks on July 2*
'eretf
The d etails of th is issue are as follows:
Total applied for - $1,175,078,000
i det;
Total accepted
- 1,001,757#000 (includes $39,993,000 entered on a fixedprice basis at 99*905 and accepted in full) |fei a;
|u
ate
iifl
Range of accepted bids:
High
Low
Average price
- 99*910 Equivalent rate of discount approx* 0*352% per annq
- 99*904
*
• ■
•
«
0*376# » « jip
- 99.904**
*
* *»
"
w Q*3?5£ " *
(93 percent of the amount bid for at the low price was accepted)
Federal Reserve
Bank__________
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Applied for
#
23,750,000
808 ,900,000
26.985.000
15#793#OQQ
12 .885.000
3 ,250,000
Total
Accepted
$
22
661
25
15
12
3
,856,000
,783,000
,389,000
,618,000
,630,000
,000,000
155,705,000
29.657.000
146,344,000
18.579.000
5 ,240,000
5 ,240,000
19.688.000
13,465,000
___
&L, 1 7 5 ,0 7 8 ,0 0 0
19.445.000
13.437.000
57*436*000
$1,001,757,000
Re
lies
s it (
: life ]
if
•tea
\M
j si
TREASURY DEPARTMENT
W ashington
POR RELEASE, MQRHIM0 NEWSPAPERS,
S a t u r d a y , J u l y 3, 1943.7 . 2 -4 3
Utito
Press Service
No. 3 7 - 4 0
’
7?he S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t
th e te n d e rs f o r $1,000,000,000,
or th e re a b o u ts ,
of 92-day T r e a s
u r y b i l l s t o be d a t e d J u l y 7 a nd t o m a t u r e O c t o b e r 7 ,
w e r e o f f e r e d on J u n e 30,
1943, w h ic h
1943, w e r e o p e n e d a t t h e f e d e r a l R e s e r v e
Banks on J u l y 2 ,
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s : ;
IMilq
1
■tapi
'|
i i|
priceilia
^
T o ta l a p p lie d f o r - $1,175,078,000
T otal accepted
- 1 ,0 0 1 ,7 5 7 ,0 0 0 ( in c lu d e s $39,993,000
e n t e r e d on a f i x e d - p r i c e b a s i s a t 9 9 . 9 0 5 an d a c c e p t e d
in f u l l )
Range o f a c c e p t e d b i d s :
High
- 99..910 E q u i v a l e n t r a t e o f d i s c o u n t a p p r o x . 0 , 352 %'
p e r annum
L 01I
- 99.904 E q u iv a le n t r a t e o f d is c o u n t a p p ro x . 0 .3 7 6 %
p e r annum
Average - 9 9 .9 0 4 / E q u iv a le n t r a t e of d i s c o u n t a p p ro x . 0 .3 7 5 /
p rice
p e r annum
I Wj (93 p e r c e n t o f t h e amoun t 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 )
U
H f e d e r a l Reserve
Ufl Bank
T otal
A pplied f o r
T otal
Accepted
$
$
f ------------------------IP
tf
jjll
111!
p
I
Jljl
Boston
New York
P h ilad elp h ia
C leveland
Richmond
A tlanta
Chicago
S t . Louis
M inneapolis
Kan k
3cl S C i t y
D allas
San f r a n c i s c o
TOTAL
23,750,000
8 0 8 ,9 0 0 ,0 0 0
26.985.000
15.793.000
12 . 885.000
3 , 250,000
155,705,000
29.657.000
5,2 4 0 ,0 0 0
1 9 16 8 8 .0 0 0
13,465,000
59>760,000
$1,175,0^8,000
2 2 ,8 5 6 , 0 0 0
661.783.000
25.389.000
.
,
15 618.000
1 2 630,000
3 ,0 0 0 ,0 0 0
146.344.000
18.579.000
5,240,000
19.445.000
13.437.000
57.436.000
$1,001,757,000
- 2
-
a t the port of e x it, unless such items are destined, d ire c tly or
in d irectly , for enemy te rrito ry * At the same time i t was pointed out
th a t since there are many re stric tio n s on the use of United States
currency outside the United S tates, trav elers checks, le tte r s of
c re d it, or telegraphic tran sfers are the best means of satisfying
finan cial needs while traveling abroad*
I t is to be noted th a t the importation prohibitions do not apply
to the importation of secu rities or currency, since such importation
is already re stric te d by General Ruling No* 5*
The ruling does not apply to instruments which have been in blocked
countries in the "generally licensed trade area0 as defined in General
License No* 53 unless such instruments have been within any of the
blocked countries to which the ruling applies • Remittances to and from
these excepted areas are nevertheless subject to the provisions of
Executive Order No* 8389, as amended* Treasury spokesmen also observed
th at the ruling imposes no new re stric tio n s on remittances to and from
China, which are already adequately controlled under existing procedures*
Treasury o ffic ia ls called atten tio n to the fa c t th a t the ruling
sets fo rth specific exemptions for certain categories of checks, drafts,
and b ills of exchange, unless such instruments are destined fo r or have
been in enemy territo ry * There are thus l e f t open certain channels
through which trav el may be financed and legitim ate trade and financial
transactions effected between countries in th is hemisphere and neutral
blocked European countries* The exceptions include non-negotiable henV
payment orders; incoming trav elers checks; outgoing trav elers checks
carried by and issued in the name of persons departing from the United
States fo r blocked countries; outgoing Treasurerfs checks carried by and
issued in the name of a person in the service of the United States
Government; outgoing currency valued a t $50 or le ss carried for traveling
expenses; incoming d rafts or b ills of exchange drawn under le tte rs of
c re d it; incoming d rafts or b ills of exchange drawn on importers in the
Western Hemisphere in connection with the importation of merchandise
into the Western Hemisphere; and incoming checks, d ra fts, b ills of
exchange, or warrants drawn on the Secretary of S tate, the Secretary of
the Navy, or the Treasurer of the United S tates. The exceptions, i t
was emphasized, do not obviate the necessity of a Treasury license with
respect to transactions within the scope of Executive Order No* 8389, as
amended, but merely exempt the instruments referred to from the special
re stric tio n s of the ruling* I t was stressed, moreover, th a t transactions
involving trade or communication with enemy nationals require a license
sp ecifically referring to General Ruling No* 11*
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Press Service
Wednwday. July 7. 1943.
No. 37 - 41
The Treasury Department today issued regulations prohibiting the
exportation of checks, d ra fts, and sim ilar negotiable instruments to
blocked countries and re stric tin g the Importation of, and dealings In,
checks and d rafts which have been in such countries •
The regulations, id en tified as General Ruling No. 5A, prohibit
the sending or taking of checks, d ra fts, b ills of exchange, promissory
notes, se cu ritie s, or currency from the United States to any blocked
country, other than China and the blocked members of the generally
licensed trade area, and prohibit, effective August 2b, 1943, the
importation of checks, d ra fts, b ills of exchange, or promissory notes
which have been within such blocked countries. The importation provi
sions are implemented by a prohibition on dealings in financial instru
ments imported on or a fte r Agoat 25, 1943.
Among the more important blocked countries to which the ruling
applies are a l l enemy and enemy-occupied countries, Portugal, Spain,
Sweden, Switzerland, and th e ir te rr ito r ie s and possessions, Tangier,
Finland, French North and West A frica, and the French A n tilles.
Any such financial instruments which have been w ithin any of the
blocked countries affected and which are imported on or a fte r August
25 , 1943, must be turned over to the Federal Reserve Bank of
New York as fis c a l agent of the United States* Parsons arriving in the
United States on or a fte r August 26, 1943> w ill be required to report
and surrender such instruments to the collector of customs a t the port
of entry, who w ill deliver them to the Federal Reserve Bank of New York.
The Treasury has stated th a t i t w ill not be i t s policy to license the
exportation or importation of, or dealings in , checks or d rafts which
are affected by the ru lin g .
The export re stric tio n s, which are immediately operative, are a
continuation and implementation of existing prohibitions. Attention
is directed to the fa c t th a t persons departing from the United States
are prohibited, except under specific Treasury authorization, from
taki ng with them any se c u ritie s, currency, checks, d ra fts , or promis
sory notes which are destined fo r any blocked country affected ty
the ru lin g , and are required to report the possession of any such
instruments or currency to the collector of customs a t the port of
e x it. However, i t was stated th at any person leaving the United States
for any blocked country affected by the ruling (except countries con
s titu tin g enemy te rrito ry ) is authorized to take out currency of an
equivalent of $50 in value and trav elers checks issued in his name,
and th a t such items need not be reported to the collector of customs
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday. Tuly 7. 1943
P r e s s Se r v i c e
No. 3 7 - 4 1
The T r e a s u r y D e p a r t m e n t t o d a y i s s u e d r e g u l a t i o n s p r o h i b i t i n g t h e
e x p o r t a t i o n o f c h e c k s , d r a f t s , a n d s i m i l a r n e g o t i a b l e i n s t r u me n t s t o
b l o c k e d c o u n t r i e s and r e s t r i c t i n g t h e i m p o r t a t i o n o f , and d e a l i n g s i n ,
c h e c k s and d r a f t s w hi c h h a v e b ee n i n s u c h c o u n t r i e s .
Th e r e g u l a t i o n s , i d e n t i f i e d a s G e n e r a l R u l i n g N o . SA, p r o h i b i t
the s e n d in g or t a k in g o f ch ec k s, d r a f t s , b i l l s of exchange, p rom issor y
n o t e s , s e c u r i t i e s , o r c u r r e n c y from t h e U n i t e d S t a t e s ' t o any b l o c k e d
c o u n t r y , o t h e r than China and th e b l o c k e d members o f t h e g e n e r a l l y
l i c e n s e d t r a d e a r e a , and p r o h i b i t , e f f e c t i v e A u g u s t 2 5 , 1 9 4 3 , t h e i m
p o r t a t i o n o f c h e c k s , d r a f t s , b i l l s o f e x c h a n g e , or p r o m i s s o r y n o t e s
w hich have been w i t h i n such b lo c k e d c o u n t r i e s .
The i m p o r t a t i o n p r o
v i s i o n s a r e i m p l e m e n t e d by a p r o h i b i t i o n o n d e a l i n g s i n f i n a n c i a l i n
s t r u m e n t s i m p o r t e d on o r a f t e r A u g u s t 2 5 , 1 9 4 3 .
Among t h e m o r e i m p o r t a n t b l o c k e d c o u n t r i e s t o w h i c h t h e r u l i n g
a p p l i e s a r e a l l enemy and e n e m y - o c c u p i e d c o u n t r i e s , P o r t u g a l , S p a i n ,
S we d e n , S w i t z e r l a n d , and t h e i r t e r r i t o r i e s and p o s s e s s i o n s , T a n g i e r ,
F i n l a n d , F r e n c h N o r t h and Wes t A f r i c a , and t hq F r e n c h A n t i l l e s .
Any s u c h f i n a n c i a l i n s t r u m e n t s w h i c h h a v e b e e n w i t h i n a n y o f t h e
b l o c k e d c o u n t r i e s a f f e c t e d and w h i c h a r e i m p o r t e d on o r a f t e r A u g u s t
2 5 , 1 9 4 3 , m u s t b e t u r n e d o v e r t o t h e F e d e r a l R e s e r v e Bank o f New Y o r k
as f i s c a l agen t o f the U n ite d S t a t e s .
P e r s o n s a r r i v i n g in the U n i te d
S t a t e s on o r a f t e r A u g u s t 2 5 , 1 9 4 3 , w i l l b e r e q u i r e d t o r e p o r t and
s u r r e n d e r such i n s t r u m e n t s to the c o l l e c t o r o f cu st oms a t the p o r t o f
e n t r y , who w i l l d e l i v e r t h e m t o t h e F e d e r a l R e s e r v e Ba n k o f New Y o r k .
Th e T r e a s u r y h a s s t a t e d t h a t i t w i l l n o t b e i t s p o l i c y t o l i c e n s e t h e
e x p o r t a t i o n or i m p o r t a t i o n o f , or d e a l i n g s i n , c h e c k s or d r a f t s w hi c h
a r e a f f e c t e d by t h e r u l i n g .
Th e e x p o r t r e s t r i c t i o n s , w h i c h a r e i m m e d i a t e l y o p e r a t i v e , a r e a
c o n t i n u a t i o n and i m p l e m e n t a t i o n o f e x i s t i n g p r o h i b i t i o n s .
Attention
i s d i r e c t e d t o t he f a c t t h a t p e r s o n s d e p a r t i n g from t h e U n i t e d S t a t e s
are p r o h i b i t e d , excep t under s p e c i f i c Treasury a u t h o r i z a t i o n ,
from
t a k i n g w i t h them any s e c u r i t i e s , c u r r e n c y , c h e c k s , d r a f t s , or p r o m i s
s o r y n o t e s w h i c h a r e d e s t i n e d f o r a n y b l o c k e d c o u n t r y a f f e c t e d by
t h e r u l i n g , and a r e r e q u i r e d t o r e p o r t t h e p o s s e s s i o n o f any su ch
in s t r u m e n t s or cu rren cy to the c o l l e c t o r o f custom s at the p o rt o f
exit.
H o w e v e r , i t was s t a t e d t h a t any p e r s o n l e a v i n g t h e Uni t e d S t a t e s
f o r any b l o c k e d c o u n t r y a f f e c t e d by t h e r u l i n g ( e x c e p t c o u n t r i e s c o n
s t i t u t i n g e n e m y t e r r i t o r y ) i s a u t h o r i z e d t o t a k e o u t c u r r e n c y o f an
e q u i v a l e n t o f $ 5 0 i n v a l u e and t r a v e l e r s c h e c k s i s s u e d i n h i s name,
2
and t h a t s u c h i t e m s n e e d n o t be r e p o r t e d t o t h e c o l l e c t o r o f c u s t o m s
at the port o f e x i t , u n l e s s such item s a re d e s t i n e d , d i r e c t l y or i n
d i r e c t l y , f o r enemy t e r r i t o r y .
At t h e s a m e t i m e i t w a s p o i n t e d o u t
t h a t s i n c e t h e r e a r e ma n y r e s t r i c t i o n s o n t h e u s e o f U n i t e d S t a t e s
currency o u ts id e the U nited S ta t e s , tr a v e le r s ch eck s, l e t t e r s of
c r e d i t , or t e l e g r a p h i c t r a n s f e r s a r e t h e b e s t m eans o f s a t i s f y i n g
financial
ply
It is
to the
tion
is
needs
while
traveling
abroad.
t o b e n o t e d t h a t t h e i m p o r t a t i o n . p r o h i b i t i o n s do n o t a p
i m p o r t a t i o n o f s e c u r i t i e s or c u r r e n c y , s i n c e such i m p o r t a
already
restricted
by G e n e r a l
R u l i n g No.
5.
The r u l i n g d o e s n o t a p p l y t o i n s t r u m e n t s w h i c h h a v e b e e n in
b l o c k e d c o u n t r i e s in the “ g e n e r a l l y l i c e n s e d t r a d e a r e a ” as d e f i n e d
i n G e n e r a l L i c e n s e No. 53 u n l e s s s u c h i n s t r u m e n t s h a v e b e e n w i t h i n any
o f the blocked c o u n t r ie s to which the r u lin g a p p l i e s .
R em ittances to
and from t h e s e e x c e p t e d a r e a s a r e n e v e r t h e l e s s s u b j e c t t o t h e p r o
v i s i o n s o f E x e c u t i v e Order No. 8 3 8 9 , as amended.
T reasury spokesmen
a l s o o b s e r v e d t h a t t h e r u l i n g i m p o s e s n o n e w r e s t r i c t i o n s on r e m i t
t a n c e s t o and from C h i n a , w h i c h a r e a l r e a d y a d e q u a t e l y c o n t r o l l e d
under
existing
procedures.
Treasu ry o f f i c i a l s c a l l e d a t t e n t i o n to the f a c t t h a t the r u lin g
s e t s forth s p e c i f i c exem ptions for c e r t a in c a t e g o r i e s of checks,
d r a f t s , and b i l l s o f e x c h a n g e , u n l e s s s u c h i n s t r u m e n t s a r e d e s t i n e d
f o r o r h a v e b e e n i n e n e my t e r r i t o r y .
There a re thu s l e f t open c e r t a i n
c h a n n e l s t h r o u g h w h i c h t r a v e l ma y b e f i n a n c e d a n d l e g i t i m a t e t r a d e
and f i n a n c i a l t r a n s a c t i o n s e f f e c t e d b e t w e e n c o u n t r i e s i n t h i s h e m i s
p h e r e and n e u t r a l b l o c k e d E u r o p e a n c o u n t r i e s .
Th e e x c e p t i o n s i n c l u d e
n o n - n e g o t i a b 1e bank payment o r d e r s ; i n c o m i n g t r a v e l e r s c h e c k s ; o u t
g o i n g t r a v e l e r s c h e c k s c a r r i e d by a n d i s s u e d i n t h e name o f p e r s o n s
d e p a r t i n g from t h e U n i t e d S t a t e s f o r b l o c k e d c o u n t r i e s ; o u t g o i n g
T r e a s u r e r ’ s c h e c k s c a r r i e d by and i s s u e d i n t h e name o f a p e r s o n i n
the s e r v i c e o f the U n ite d S t a t e s Government; o u t g o i n g c u rr en cy va lu ed
a t $50 or l e s s c a r r i e d f o r t r a v e l i n g e x p e n s e s ; i n c o m i n g d r a f t s or
b i l l s o f e x c h a n g e drawn u n d e r l e t t e r s o f c r e d i t ; i n c o m i n g d r a f t s or
b i l l s o f e x c h a n g e drawn on i m p o r t e r s i n t h e W e s t e r n H e m i s p h e r e in
c o n n e c t io n w ith the im p o r ta tio n o f m er ch a n d ise i n t o th e Western
H e m i s p h e r e ; and i n c o m i n g c h e c k s , d r a f t s , b i l l s o f e x c h a n g e , or w a r
r a n t s d r a wn on t h e S e c r e t a r y o f S t a t e , t h e S e c r e t a r y o f t h e N a v y , or
the Treasurer of the United S ta te s .
The e x c e p t i o n s , i t w a s e m p h a
s i z e d , do n o t o b v i a t e t h e n e c e s s i t y o f a T r e a s u r y l i c e n s e w i t h r e
s p e c t t o t r a n s a c t i o n s w i t h i n t h e s c o p e o f E x e c u t i v e O r d e r No. 8 3 8 9 ,
as amended, but m e r e l y exempt t h e i n s t r u m e n t s r e f e r r e d t o from th e
s p e c ia l r e s t r i c t i o n s of the r u l i n g .
I t was s t r e s s e d , m o r e o v e r , t h a t
t r a n s a c t i o n s i n v o l v i n g t r a d e or c o m m u n i c a t i o n w i t h enemy n a t i o n a l s
r e q u i r e a l i c e n s e s p e c i f i c a l l y r e f e r r i n g t o G e n e r a l R u l i n g No. 11.
7*
E ffe c tiv e date.
The p r o v i s i o n s h e r e o f s h a l l t a k e e f f e c t
A u g u s t 2 5 , 1 9 4 3 , w i t h t h e e x c e p t i o n o f p a r a g r a p h s 1 ( a ) and 3 ( b ) w h i c h
s h a l l b e e f f e c t i v e on t h e d a t e o f i s s u a n c e o f t h i s g e n e r a l r u l i n g .
RANDOLPH PAUL
Acting Secretary
o f the
Treasury.
3
4.
E x c e p t i o n s » The f o r e g o i n g p r o v i s i o n s s h a l l n o t b e d e e m e d t o
a p p ly to the f o l l o w i n g i n s t r u m e n t s , u n l e s s su ch i n s t r u m e n t s have been
w i t h i n , or t h e r e i s r e a s o n a b l e ca u s e to b e l i e v e t h a t they have been
w i t h i n , e n e my t e r r i t o r y , o r u n l e s s s u c h i n s t r u m e n t s a r e d e s t i n e d f o r ,
or th e re i s r e a so n a b le cause to b e l i e v e th a t they are d e s t i n e d fo r,
e n e my t e r r i t o r y , d i r e c t l y o r i n d i r e c t l y :
(a)
Non-negotiable
(*>)
bank
payment
travelers
orders;
(i)
Incoming
checks;
(ii)
O u t g o i n g t r a v e l e r s c h e c k s w h i c h a r e c a r r i e d by
p e r s o n s d e p a r t i n g from t h e U n i t e d S t a t e s f o r
b l o c k e d c o u n t r i e s and w h i c h a r e i s s u e d in the
name o f t h e p e r s o n c a r r y i n g t h e m;
(c)
O u t g o i n g c h e c k s drawn on t h e T r e a s u r e r o f t h e U n i t e d
S t a t e s w hich a r e c a r r i e d by p e r s o n s in t h e s e r v i c e o f the
U n i t e d S t a t e s G o v e r n m e n t a n d w h i c h a r e i s s u e d i n t h e name o f
the
person
carrying
t h e m;
(d)
O u t g o i n g c u r r e n c y v a l u e d a t $ 5 0 or l e s s w h i c h
f o r t r a v e l i n g e x p e n s e s by p e r s o n s d e p a r t i n g f r o m
S t a t e s for blocked c o u n t r ie s ;
(e)
Incoming d r a f t s or b i l l s
of
exchange
is carried
the U nited
d r a wn u n d e r
letters
o f credi t ;
(f)
I n c o m i n g d r a f t s or b i l l s o f e x c h a n g e drawn on i m p o r t e r s
in the Western Hemisphere in c o n n e c t i o n w it h the i m p o r ta t io n
o f g o o d s , ware s, or m e r c h a n d i s e i n t o th e Western Hemisphere;
(g)
In com in g c h e c k s , d r a f t s , b i l l s o f e x c h a n g e , or w a r
r a n t s drawn on t h e S e c r e t a r y o f S t a t e o f t h e U n i t e d S t a t e s ,
t h e S e c r e t a r y o f Navy o f t h e U n i t e d S t a t e s , o r the T r e a s u r e r
of
the
United
States.
5,
Transactions not a u th o r iz e d .
T h is g e n e r a l r u l i n g s h a l l not
b e d e e m e d t o a u t h o r i z e a n y t r a n s a c t i o n p r o h i b i t e d b y t h e O r d e r o r by
a n y r e g u l a t i o n , r u l i n g , o r i n s t r u c t i o n i s s u e d 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 p u r s u a n t t o s e c t i o n s 3( a ) or 5 ( b ) o f t h e T r a d i n g w i t h the
e n e my A c t ,
6.
censed
General
as
amended.
D efini tio n s .
(a)
The t er m ‘ m e m b e r ” o f t h e g e n e r a l l y l i
t r a d e a r e a as u s e d h e r e i n s h a l l h a v e t h e m e a n i n g p r e s c r i b e d in
License
No.
53,
(b)
the meaning p r e s c r ib e d
as
amended.
Th e t e r m “ e n e m y t e r r i t o r y ” a s u s e d
i n G e n e r a l R u l i n g No. 11, a s amended.
herein
shall
have
2
2*
D e li v e r y of imported c h ec k s, d r a f t s , e t c . , to F ed eral Reserve
B a n k o f New Y o r k .
Any p e r s o n w h o , a f t e r t h e e f f e c t i v e d a t e o f t h i s
g e n e r a l r u l i n g , r e c e i v e s a n y c h e c k , d r a f t , b i l l o f e x c h a n g e , or p r o
m i s s o r y n o t e w h i c h h a s b e e n w i t h i n , or w h i c h t h e r e i s r e a s o n a b l e c a u s e
t o b e l i e v e has b e e n w i t h i n , any b l o c k e d c o u n t r y ( w i t h t h e e x c e p t i o n
o f C h i n a and membe rs o f t h e g e n e r a l l y l i c e n s e d t r a d e a r e a ) s h a l l
w i t h i n f i v e days a f t e r r e c e i p t t h e r e o f forward such in s t ru m e n t t o the
F e d e r a l R e s e r v e B a n k o f New Y o r k , a c c o m p a n i e d b y a s t a t e m e n t i n t r i p
lic a te settin g forth:
(a)
His
name
a nd
address;
(b)
(c)
A com plete d e s c r i p t i o n of the instrum ent;
Th e name a n d a d d r e s s o f t h e p e r s o n f r o m whom he
t h e i n s t r u m e n t ; and
(d)
Th e n a m e s o f a n y b l o c k e d c o u n t r i e s i n w h i c h t h e i n s t r u
me n t h a s b e e n , or i n w h i c h t h e r e i s r e a s o n a b l e c a u s e t o
b e l i e v e i t has b e e n .
received
T h e F e d e r a l R e s e r v e B a n k o f New Y o r k w i l l a c t o n l y a s f i s c a l a g e n t o f
t h e U n i t e d S t a t e s h e r e u n d e r and s h a l l r e c e i v e and h o l d a l l s u c h i n
stru m ents as such f i s c a l a g e n t , s u b j e c t to the f u r th e r order of the
S e c r e t a r y of the T r e a s u r y .
A p p l i c a t i o n s f o r t h e r e l e a s e o f any s u c h
i n s t r u m e n t s may b e f i l e d i n t h e m a n n e r p r e s c r i b e d i n s e c t i o n 1 3 0 . 3 o f
the R e g u la t io n s , ex c ep t that the place for f i l i n g a p p l i c a t i o n s s h a l l
b e t h e F e d e r a l R e s e r v e B a n k o f New Y o r k .
3•
Reports
on a r r i v a l
a nd d e p a r t u r e
re
checks,
drafts,
etc.
(a)
Any i n d i v i d u a l e n t e r i n g t h e U n i t e d S t a t e s a f t e r t h e
e f f e c t i v e d a t e of t h i s g e n e r a l r u l i n g from any f o r e i g n c o u n t r y s h a l l
r e p o r t a nd s u r r e n d e r t o t h e c o l l e c t o r o f c u s t o m s o r h i s r e p r e s e n t a t i v e
a t t h e p o r t o f e n t r y , b e f o r e t h e e x a m i n a t i o n o f h i s b a g g a g e or e f f e c t s
has begun ( o r , i f h i s baggage is not s u b j e c t to e x a m in a tio n , b e f o r e
c u s t o m s c l e a r a n c e ) , e v e r y c h e c k , d r a f t , b i l l o f e x c h a n g e , and p r o
m i s s o r y n o t e c a r r i e d on h i s p e r s o n or i n h i s b a g g a g e or e f f e c t s w h i c h
h a s b e e n w i t h i n , or w h i c h t h e r e i s r e a s o n a b l e c a u s e t o b e l i e v e h a s
b e e n w i t h i n , a n y b l o c k e d c o u n t r y ( w i t h t h e e x c e p t i o n o f C h i n a and
members o f t h e g e n e r a l l y l i c e n s e d t r a d e a r e a ) .
S u c h r e p o r t s h a l l be
ma de i n d u p l i c a t e on Fo rm F F C - 1 6 0 , w h i c h may b e o b t a i n e d f r o m t h e
c o l l e c t o r o f c u s t o m s or h i s r e p r e s e n t a t i v e a t t h e p o r t o f e n t r y .
(b)
Any i n d i v i d u a l d e p a r t i n g f r o m t h e U n i t e d S t a t e s a f t e r
the e f f e c t i v e d a te of t h is g e n e r a l r u l i n g s h a l l rep o rt to the c o l
l e c t o r o f c u s t o m s or h i s r e p r e s e n t a t i v e a t t h e p o r t o f e x i t , b e f o r e
c u s t o m s e x a m i n a t i o n h a s b e g u n ( o r , i f he i s n o t s u b j e c t t o c u s t o m s
e x a m i n a t i o n , b e f o r e c u s t o m s c l e a r a n c e ) , ( i ) a l l c u r r e n c y and ( i i )
e v e r y c h e c k , d r a f t , b i l l o f e x c h a n g e , p r o m i s s o r y n o t e , and s e c u r i t y
c a r r i e d on h i s p e r s o n or i n h i s b a g g a g e o r e f f e c t s w h i c h i s d e s t i n e d
f o r , or w h i c h t h e r e i s r e a s o n a b l e c a u s e t o b e l i e v e i s d e s t i n e d f o r ,
d i r e c t l y or i n d i r e c t l y , a n y b l o c k e d c o u n t r y ( w i t h t h e e x c e p t i o n o f
C h i n a and members o f t h e g e n e r a l l y l i c e n s e d t r a d e a r e a ) .
Such r e p o r t
s h a l l b e ma d e i n d u p l i c a t e o n F o r m F F C - 1 6 1 , w h i c h ma y b e o b t a i n e d
f ro m t h e c o l l e c t o r o f c u s t o m s or h i s r e p r e s e n t a t i v e a t t h e p o r t o f
e x i t . -,
TREASURY DEPARTMENT
O f f i c e o f the S e c r e t a r y
Ju ly 7, 1943
GENERAL RULING NO. 5A
UNDER EXECUTIVE ORDER NO. 8 3 8 9 , AS AMENDED, EXECUTIVE ORDER NO. 9 1 9 3 ,
SECTIONS 3 ( a ) AND 5 ( b ) OF THE TRADING WITH THE ENEMY ACT, AS AMENDED
BY THE F IR S T WAR POWERS ACT, 1 9 4 1 , RELATING TO FOREIGN FUNDS CONTROL.*
R EGULATIONS R ELATIN G TO CERTAIN IM PORTATIONS AND EXPORTATIONS OF
CHECKS, DRAFTS, AND OTHER FINANCIAL INSTRUMENTS.
1•
P r o h i b i t i o n w i t h r e s p e c t to i m p o r t a t i o n and e x p o r t a t i o n o f
and d e a l i n g s i n c h e c k s , d r a f t s , e t c .
The f o l l o w i n g t r a n s a c t i o n s a r e
p r o h ib ite d a f t e r the e f f e c t i v e date of th is general ru lin g u n less
a u t h o r i z e d by a l i c e n s e or o t h e r a u t h o r i z a t i o n o f t h e S e c r e t a r y o f
the Treasury e x p r e s s ly r e f e r r in g to t h i s general ru lin g:
(a)
Th e s e n d i n g , m a i l i n g , e x p o r t i n g , o r o t h e r w i s e t a k i n g o f
any c h e c k , d r a f t , b i l l o f e x c h a n g e , p r o m i s s o r y n o t e , s e c u r i
t y , o r c u r r e n c y from t h e U n i t e d S t a t e s , d i r e c t l y or i n d i r e c t
l y , t o a n y b l o c k e d c o u n t r y ( w i t h t h e e x c e p t i o n o f C h i n a a nd
members o f th e g e n e r a l l y l i c e n s e d t r a d e a r e a ) ;
(b)
The s e n d i n g , m a i l i n g , i m p o r t i n g , o r o t h e r w i s e b r i n g i n g
i n t o t h e U n i t e d S t a t e s from any f o r e i g n c o u n t r y o f any c h e c k ,
d r a f t , b i l l o f e x c h a n g e , or p r o m i s s o r y n o t e which has been
w i t h i n , or which t h e r e i s r e a s o n a b l e c a u se to b e l i e v e has
been w i t h i n , any b l o c k e d c o u n t r y ( w i t h th e e x c e p t i o n o f
C h i n a a n d m em b e rs o f t h e g e n e r a l l y l i c e n s e d t r a d e a r e a ) ;
(c)
The p r e s e n t a t i o n , e n d o r s e m e n t , a c c e p t a n c e , c o l l e c t i o n ,
p a y m e n t , t r a n s f e r , or p r o t e s t o f , or any o t h e r d e a l i n g in or
w i t h r e s p e c t t o , any i n s t r u m e n t t o w hi c h t he p r o h i b i t i o n s o f
p a r a g r a p h 1 ( b ) h e r e o f a p p l y and w h i c h i s s e n t , m a i l e d , i m
p o r t e d , o r o t h e r w i s e b r o u g h t i n t o t h e U n i t e d S t a t e s on o r
after
August
25,
1943.
• A p p e n d i x A; - - S e c . 5 ( b ) , 4 0 S t a t . 4 1 5 a n d 9 6 6 ; S e c . 2 , 4 8 S t a t . 1; 54 S t a t . 1 7 9 ; P u b l i c
No . 3 5 4 , 7 7 t h C o n g r e s s , 55 S t a t . 8 3 8 ; E x . O r d e r 8 3 8 9 , A p r i l 1 0 , 1 9 4 0 , a s a m e n d e d b y E x .
O r d e r 8785 , J u n e 1 4 . 1 9 4 1 ; Ex . O r d e r 8 8 3 2 , J u l y 2 6 , 1 9 4 1 ; E x . O r d e r 8 9 6 3 , D e c e m b e r 9, 1 9 4 1 ,
a n d E x . O r d e r 8 9 9 8 , D e c e m b e r 2 6 , 1 9 4 1 ; E x . O r d e r 9 1 9 3 , J u l y 6, 1 9 4 2 ; R e g u l a t i o n s , A p r i l 1 0 ,
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 .
TREASURY DEPARTMENT
Washington
Press Service
for im m ediate r e le a se ,
Tuesday. July 6, 1943*
3 1
Secretary of the Treasury Morgenth&u today announced the subscrip-
mi
tion figures and the basis of allotment for the cash offering of X—1/2
percent Treasury Rotes of Series A—
1947 •
Reports received from the Federal Reserve Banks show that subscrip
tions aggregate #19,544,000,000.
Subscriptions in amounts up to and
including $100,000, totaling about #1,347,000,000, were allotted in full
Subscriptions in amounts over $100,000 were allotted 7
percent, on a
straight percentage basis, but not less than $100,000 on any one sub
scription, with adjustments, where necessary, to the $1,000 denomination
Details as to subscriptions and allotments will be announced when
final reports are received from the Federal Reserve Banks.
ton
;
TREASURY DEPARTMENT
W ashington
”7 "%*’ "
:■-
'?•
FOR IMMEDIATE RELEASE,
T uesday, J u ly 6 , 19L7 .
P re s s S e rv ic e
No, 37-42
'^ s
S e c r e ta r y o f th e T re a su ry M orgenthau to d ay announced
liRtMi
th e s u b s c r ip tio n f ig u r e s and th e b a s is o f a llo tm e n t f o r th e
M |||
c a sh o f f e r i n g o f 1 -1 /2 p e r c e n t T re a su ry N otes o f S e r ie s
•riilliWi
A -19^ 7 ,
II fMt,I
R e p o rts r e c e iv e d from th e F e d e ra l R eserv e Banks show
iCtu?«i
t h a t s u b s c r ip tio n s a g g re g a te # 1 9 ,5 ^ ,0 0 0 ,0 0 0 .
iti/M
in amounts up to and in c lu d in g #100, 000, t o t a l i n g ab o u t
IIIMi)
Mb.
# 1 ,3 ^ 7 ,0 0 0 ,0 0 0 , were a l l o t t e d in f u l l .
S u b s c rip tio n s
S u b s c r ip tio n s in
amounts o v er #100,000 were a l l o t t e d 7 p e r c e n t, on a s t r a i g h t
p e rc e n ta g e b a s i s , b u t n o t l e s s th a n #100,000 on any one su b s c r i p t i o n , w ith a d ju s tm e n ts , where n e c e s s a ry , to th e #1,000
d en o m in atio n .
D e ta ils a s to s u b s c r ip tio n s and a llo tm e n ts w ill be
announced when f i n a l r e p o r ts a re r e c e iv e d from th e F e d e ra l
R eserve Banks,
-0 O0 -
FOR IMMEDIATE RELEASE
July. 6. 1943_________
The Bureau of Customs announced today preliminary figures shoving the
quantities of coffee authorized for entry for consumption under the quotas
fo r the 12 months commencing October 1, 1942* provided for in the InterAmerican Coffee Agreement* proclaimed hy the President on April 15* 1941,
as follow s:
Country of
Production
.
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
9
: Qpota Quantity
:
(pounds) 1 /
•9
2*172,359,753
735,840,277
46,718*031
18,692*451
25*752,947
35,041,235
140,776*585
124,978*598
64*236,136
4*278,467
111,292,661
45*818,819
5*839,588
90,021,490
Noi>-signatory Countries:
)
B ritish Empire, except
)
Aden and Canada
)
Kingdom of the Netherlands)
) 75,969,017
and i t s possessions
Aden* Yemen* and Saudi
)
Arabia
)
Other countries not signer-)
to r ie s of the In ter)
American Coffee Agree- )
ment
)
A./
Quotas revised as of March 5, 1945.
>o0o—
As of
Authorized for entry
for consumption
(Date)____ •___ (Pounds)__
June 26* 1943
H
It
It
II
It
II
n
H
ii
ti
N
II
H
502,722,247
441,843,288
29,642,584
9,932,547
17*280,128
16,924,590
107,212,737
67,915,107
52,782,606
2,978,306
53,612,263
21,914,230
217,797
60,468,964
a
31,816,305
TREASURY DEPARTMENT
W ashingt on
POR IMMEDIATE RELEASE,
Wednesday, J u ly 7. 1943.
P r e s s S e rv ic e
Uo. 37—43
The B ureau o f Customs announced to d a y p r e li m i n a r y f i g u r e s show ing th 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 i y f o r co n su m p tio n u n d e r th e q u o ta s f o r
th e 12 m onths commencing O c to b e r 1, 1942, p r o v id e d f o r in th e In te rs A m e ric a n
C offee A greem ent, p ro c la im e d hy th e P r e s id e n t on A p r il 15, 1941,. as f o llo w s :
C o untry o f
P ro d u c tio n
:
:
'}
S ig n a to ry C o u n trie s *
B ra z il
Colom bia
C o sta R ic a
Cuba
Dominican R e p u b lic
Ecuador
El S a lv a d o r
G uatem ala
H a iti
Honduras
Mexico
N icara g u a
Peru
V enezuela
N o n -sig n a to iy C o u n trie s ?
)
B r i t i s h E m pire, e x c e p t
)
Aden and Canada
)
Kingdom o f th e N e th e r la n d s )
and i t s p o s s e s s io n s
)
Aden, Yemen, and S au d i
)
A rab ia
)
O ther c o u n t r i e s n o t s ig n a - )
t o r i e s o f th e I n t e r )
Am erican C o ffe e A g ree- )
ment
)
i/
Q uota Q u a n tity t
(p o u n d s) 1 /
f
• As o f
2 ,1 7 2 ,3 5 9 ,7 5 3
7 3 5 ,8 4 0 ,3 7 7
4 6 ,7 1 8 ,0 3 1
1 8 ,6 9 2 ,4 5 1
2 5 ,7 5 2 ,9 4 7
3 5 ,0 4 1 ,2 3 5
1 4 0 ,7 7 6 ,5 8 5
1 2 4 ,9 7 8 ,5 9 8
64*236,136
4 ,2 7 8 ,4 6 7
1 1 1 ,2 9 2 ,6 6 1
4 5 ,8 1 8 ,8 1 9
5 ,8 3 9 ,5 8 8
9 0 ,0 2 1 ,4 9 0
?••;
4
7 5 ,9 6 9 ,0 1 7
Quotas r e v is e d a s o f M arch 5 , 1943.
~o0o~
A u th o riz e d f o r e n tr y
f o r c o n su m p tio n
(D ate)
J
(P ounds)
Ju n e 2 6 , 1943
n
5 0 2 ,7 2 2 ,2 4 7
4 4 1 ,8 4 3 ,2 8 8
2 9 ,6 4 2 ,5 8 4
9 ,9 3 2 ,'547
1 7 ,2 8 0 ,1 2 8
1 6 ,9 2 4 ,5 9 0
1 0 7 ,2 1 2 ,7 3 7
6 7 ,9 1 5 ,1 0 7
5 2 ,7 8 2 ,6 0 6
2 ,9 7 8 ,3 0 6
5 3 ,6 1 2 ,2 6 3
2 1 ,9 1 4 ,2 3 0
2 1 7 ,7 9 7
6 0 ,4 6 8 ,9 6 4
it
3 1 ,8 1 6 ,3 0 5
ft
tt
tt
tt
tt
ft
n
tt
tt
n
it
it
i m
$©§
Mr#
i M
dune
1943,
fEOKt Mr# Surrey
Attach** 1b a prepoaad pre*« relaaaa ragardlng panelon
tnt«ta* to ha i»*ued Jointly by tha Secretary and the Constationer at tha ansae tin* a« tha panaton truat rafaletIon*.
Will you kindly atfbsit tlilf far tha Co*»t**ionar, a approval
and haaa It returned to aa for approval hy tha Secretary#
M tadwttt#
AWD:OH rt.
6-38-431)^1/
UBS
mm
P i
•bhlle the $3,000 salary c la s s ifie d Ion t« not in it s e lf forbidden
by the statute, it ft r t h iU n , It mey w ell roonlt in tho forbidden types
of discrimination. Hegarding the discrimination provision#, the 1a*
fl
•tatot in effect that the prohibited discriminations w ill not arise/nsrsiy^
because in coverage, contribut ions end benefit** employees earning $3*000 :
per annum or less are excluded, i f each employees are covered by th«
Social Security program. It alec provides that discrimination# w ill not
arise ^merely £ baeauea the benefits paid upon annual earnings in exceet
of $3,000 d iffer from those paid upon earnings of $3,000 or It**. Mertovtr,
it le sp ecificeliy stated that discrimination w ill not aria* marsly^r
because contributions and benefits are bated on a uniform percentage of
earnings. fhs report of the Commlttss on finance of the Senate on this
portion of the 1943 law state* that these provisions, together with the
authority grant#* to the Commissioner to approve non-discr Ininatory
claeeifleation* not meeting the epeoified hi^> percentage requirement t *•
to coverage, were intended in part *to make it possible for plan*
supplementing the Social Security program to qualify1.
*10 1* apparent that the reason for permitting these distinctions,
a* b*tween employees earning more than $3,000 and thoae earning less*
U se in the fact that Social Security provide* benefits on a ll the
earning* of the la tter group. However, the propriety of th is type of
clan. In conjunction with the Social Security pro^pram, must be viewed
in the lig h t of the general policy of tho lew that the prohibited dis*
criminatory effect* must be avoided. In drafting regulations on this
subject therefore, the task has been to establish the type of supplementstion which is permitted by the law,
*H is im plicit in the reason for tho oxelueion of those earning
$3,000 or le ss that i f supplementation le not to favor the o m w i ,
stockholders, supervisory and highly paid employees lncludad in the plan
«* i ^ i u l the l o w wdd ewBloye*. oncludod, too wppleneutery tosofit*
must bo rotated to the benefits under Sooial Security. Accordingly, the
regulation* le.uod today adopt too bn.lo ru l. that ploao which »*« *
onployne. wtew w n ia g s ara $3,000 » yaar or la * .
with Social Security in such maimer that the total benefits received by
cployeoe cowered by tha plaa (Including thaw Social Security bcaofltc),
w ill aot be propertloM tely greeter than too benefit# roeeiwed under
toe Social Security Aet by enployeee corning #8,000 or loot.
•Sbaro hawo bean leeuod, at toa earn tine a* to . regulation., three
ruling, by toe Ineone fan Unit of too Bureau of Internal Bewonue
epaelfleally relating to toa natter of dieerlnlaatlon In panelon plen*
which adept ne n nlninun e lig ib ility require**! a ealary of
these rulings indicate two examples of such plans which w ill
satisfy the requlresante of the regulation* concerning integration vitt
to . Seoul Security program. Sho third dealt » lto a plan wh!to
be doeced eatlefnetory In that reepaot. i t le bellawad toat p **1—*
of theee ruling* nay prow* holnful In oennootlen with oto*r P1—
*lall«r nature. Hewowor, to* prlnelpl. of Integration date M *m«»**
any particular fom ule. It lends i t .e l f to nnrreeeion in a warloty e*
forms, any ona of which may prove equally satisfactory. Accordingly,
each case may be considered on it s merits without reference to a pre
conceived form, with a view to determining whether i t achieves substantial
integration,1
j
44
ku<-£jU*
Jr,
•sd n ro flt-to erin * pl*»» I f * « •* • ******5^ “ ^ n L r l L tofey
^
aceuire w r« f « m tU l in c o c to* tr»at»«nt,. *«r» ^announced w w j g
of tho Bovoau* Aot of 1943«
*tro M otion* Of t o . r e fla tio n * c o r e ln t.g w .tlo o with ****J’0°J“*
Security o y . U of 4 ® » r t i * exclude employe*.
X ? lnf
#8.000 . y « r . t o i l . no p e x n e u u r
o.toblitood
P
d elu d in g their Social Security benefit*)
K
S
t £ the b en efit, " c e le .d under the
s o d * Security *ct by ..eluded e ^ lc y — .
In connection with the publication of
<K(j
I S L e ...
•She Horonuo Act of 1948 eff.eU d w ry .u b .tw tU l ^.ndnenW to
the lncoea tax lnv e la tin g to onplcyooo'
!
^
j|
£ & £ S u i r « .n t . to,; «
plo^eot*
**
w
*
"****
*
jjtbiftfi
lneono U eneept fro* to*. In ^ l t i o f i . ««i
M. Auntaver**
e ^ o y e r • contribution*
£ *
M to
th« tra e t. up to the M l T ^ r S S S S S t o r S y S tn e h tS they nr.
in co.rn.tlne h i. o v n in e o c
in the tu r tle
1 1 1 , tu t euoh a*ount» are not re*ulred to be *“»*“"•“ “
“ cone. of the employee. u n til u ltira teiy dl.trlbuted to then.
bm eflt* to toe eaployeee.
i
r
t
o
•tolflt
2$
Co«*t
«h«
^
i
Inportont anong t o ... IM OtrttM . » » to*
u
L
r
S
r
t
S 3K ££t ‘i*s--V*
••loner of Xatoruftl Rowroo »ot %* Al*erl*l«a%
v o » ,»
m airfliory or kii&lLjr eo*E*a*ftt*A •Kploy***. ona
?S?lX t ’ to“
lS * r contribution, end .c l o y . . b en efit. «u,t .l.= not
dl.orlBlnat* IT f.r o r of to o .. r t * * « of .u p lo y « . rtow ^ eclfled .
* . , r «
r
s
BdSfetJsyr
'
s
r . s
. - . r - .
«
—
«
-
ssr
S - y - u with
r
of rtlftn tft fit$| outgrowth Of HM XaO% fOW JFO*r** M
iin S m y of n il L i . I t . derelopnent h e . in lerge p ert « e ^ W
to . high to* rntoo in effect .in o . 1939. Beenu.e of •
*•
S n o r t e r . boeeuM e l i g i b i l i t y d.pend. on ho* « o h “ " g * * *
e»rn»t*end beoeu.e elnoet In w rU b ly * r .r y « a U * « " • » * * • • *
employee* w ill b# ooTored, ouch plana «uet bo clo eely oxesalned,
f&o poller •©*!»•% 41 »er Ituiii*t toa*
IS
1
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T h u rsd ay , J u ly &, 19*13 ♦
P r e s s S e rv ic e
No? 3 7 - ^
R equirem en ts w hich must be met by employees* p e n s io n ,
s to c k bonus and p r o f i t - s h a r i n g p la n s i f t r u s t s embodied in
th e s e p la n s a r e to a c q u ir e p r e f e r e n t i a l income ta x tre a tm e n t
w ere announced to d ay by th e T re a su ry D epartm ent and th e Bureau
o f I n t e r n a l Revenue.
The re q u ire m e n ts a re s e t f o r t h in re g u
l a t i o n s Is s u e d u n d er a u t h o r it y o f th e Revenue Act of 19*12.
Two s e c tio n s o f th e r e g u la tio n s c o v e r i n t e g r a t i o n w ith
th e S o c ia l S e c u r i t y ,system o f p la n s w hich ex clu d e em ployees
n o t e a rn in g more th a n $ 3,000 a y e a r . W hile no p a r t i c u l a r f o r
mula i s p r e s c r ib e d , th e r u l e i s e s t a b l i s h e d th a t such p la n s
must be so i n t e g r a t e d t h a t th e t o t a l b e n e f i t s re c e iv e d by
co v ered em ployees ( in c lu d in g t h e i r S o c ia l S e c u r ity b e n e f i t s )
w i l l n o t be p r o p o r ti o n a te ly g r e a t e r th a n th e b e n e f i t s re c e iv e d
u n d er th e S o c ia l S e c u r ity Act by ex clu d ed em ployees.
In c o n n e c tio n w ith th e p u b lic a tio n o f th e r e g u la tio n s ,
Com missioner H e lv e rin g made th e fo llo w in g s ta te m e n t:
"The Revenue Act o f 19*1-2 e f f e c t e d v e ry s u b s t a n t i a l amend
ments to th e income ta x law r e l a t i n g to employees* p e n sio n ,
sto c k bonus and p r o f i t - s h a r i n g t r u s t s fo rm in g p a r t o f p la n s f o r
th e b e n e f i t o f em ployees. I f th e p la n s meet s p e c if ie d s t a t u
to r y re q u ire m e n ts th e t r u s t income i s exempt from ta x . In ad
d i t i o n , an e m p lo y e r's c o n tr ib u tio n s to th e t r u s t , up to th e
f u l l amount p e r m itte d by th e law , a re d e d u c tib le in com puting
h is own income ta x l i a b i l i t y f o r th e y e a r in w hich th e y a re
made, b u t such amounts a r e n o t r e q u ir e d to be in c lu d e d in th e
ta x a b le Incomes o f th e em ployees u n t i l u lt i m a t e l y d i s t r i b u t e d
to them,
“The s t a t u t o r y re q u ire m e n ts upon w hich t h i s fa v o ra b le ta x
tre a tm e n t i s c o n d itio n e d r e l a t e b o th to th e amounts w hich may
be c o n tr ib u te d by an em ployer and to th e a l l o c a t i o n and d i s t r i
b u tio n o f th e c o n t r ib u t io n s and b e n e f i t s to th e em ployees. Im
p o r ta n t among th e s e l i m i t a t i o n s a re th e p r o v is io n s ( 1 ) t h a t th e
t r u s t se e k in g exem ption must be p a r t of a p la n f o r th e e x c lu s iv e
b e n e f i t o f th e em ployees; ( 2 ) t h a t th e p la n must co v er a f ix e d
h ig h p e rc e n ta g e o f th e t o t a l em ployees o r , in th e a l t e r n a t i v e ,
t h a t i t must embody a c l a s s i f i c a t i o n o f em ployees w hich I s
2 -
d e te rm in e d by th e Com m issioner of I n t e r n a l Revenue n o t to d i s o rijn ln a te in fa v o r o f o f f i c e r s , s to c k h o ld e r s , s u p e rv is o ry o r
h ig h ly com pensated em ployees, and ( 3 ) t h a t th b em ployer c o n t r i
b u tio n s and employee b e n e f i t s must a ls o n o t d is c r im in a te in
1 avor o f th o se c l a s s e s of em ployees above s p e c if ie d ,
H
s u b je c t o f em p lo y ees1 t r u s t s g e n e r a lly and, more p a r t i c u l a r l y , th e q u e s tio n o f th e fo rb id d e n d is c r im in a tio n s have
r a i s e d many com plex and in v o lv e d problem s w hich have o ccu p ied
th e a t t e n t i o n o f th e T re a su ry D epartm ent f o r many m onths, The
thnap
mo8t ° ^ ® n r& ise th e q u e s tio n o f d is c r im in a tio n a re
th o se w r i tte n to c p v e r o n ly em ployees whose an n u al e a rn in g s a re
in ex c ess o f a s t i p u l a t e d amount, u s u a lly 1 3 ,0 0 0 / T h is ty p e
i ? an o u tg ro w th o f th e l a s t few y e a r s , i i in c lu d e s o n ly
a sm all m in o rity o f a l l p l a n s , I t s developm ent has in laro*e n a r t
c o w c ia e d w ith th e h ig h ta x r a t e s in 0 ^ W t 8?nce 1939. B ecause
f w Tende? cy to in c r e a s e in number, b ecau se e l i g i b i l i t y depends
on how much an employee earns* and b ecau se alm o st in v a r ia b ly a
v ery sm all p e rc e n ta g e Of th e t o t a l em ployees w i l l be co v ered ,
such p la n s must be c l o s e ly exam ined, in view o f th e p o lic y
a g a in s t d is c r i m in a tio n ,
■
*
;^3,000 s a la r y c l a s s i f i c a t i o n i s n o t in I t s e l f
fo rb id d e n by th e s t a t u t e , n e v e r th e le s s , i t may w e ll r e s u l t in
th e fo rb id d e n ty p e s o f d is c r i m in a tio n . R eg ard in g th e d i s c r i m i
n a tio n p r o v is io n s , th e law s t a t e s in e f f e c t t h a t th e p r o h ib ite d
d is c r im in a tio n s w i l l n o t a r i s e m erely b ecau se in co v e ra g e, con
t r i b u t i o n s and b e n e f i t s , em ployees e a rn in g #3,000 p e r annum o r
le s s a r e ex c lu d ed , i f such em ployees a re co v ered by th e S o c ia l
S e c u r ity program . I t a ls o p ro v id e s t h a t d is c r im in a tio n s w i l l
n o t a r i s e m erely b ec au se th e b e n e f i t s p a id upon an n u al e a rn in g s
SJSe8S °** $3;
d i f f e r from th o se p a id upon e a rn in g s o f
^ ° ? Q
Xe88,% More<>ver, i t i s s p e c i f i c a l l y s t a t e d t h a t d i s
c r im in a tio n w i l l n o t a r i s e m erely b ecau se c o n tr ib u tio n s and
b e n e f i ts a re b ased on a u n ifo rm p e rc e n ta g e o f e a rn in g s . The
r e p o r t o f th e Committee on F in an ce o f th e S en ate on t h i s p o r tio n
0
- law s t a t e s t h a t th e s e p r o v is io n s , to g e th e r w ith th e
a u t h o r it y g ra n te d to th e Com m issioner to approve n o n -d is o rim in a ory c l a s s i f i c a t i o n s p o t m eetin g th e s p e c if le d h ig h p e rc e n ta g e
re q u ire m e n ts as to c o v e ra g e , w ere in te n d e d in p a r t ?to make i t
q u a lify ^ f °r p la n s suPP*emeh tin g th e S o c ia l S e c u r ity program to
I t I s a p p a re n t t h a t th e re a s o n f o r p e r m ittin g th e s e d i s
t i n c t i o n s , as betw een em ployees e a rn in g more th a n
,000 and
th o se e a rn in g l e s s , l i e s in th e f a c t t h a t S o c ia l S e c u r ity p r o
v id e s b e n e f i t s on a l l th e e a rn in g s o f th e l a t t e r g ro u p , However,
th e p r o p r ie ty o f t h i s ty p e o f p la n , in c o n ju n c tio n w ith th e
b o c la l S e c u r ity program , must be view ed, in th e l i g h t of th e gen-r
e r a l p o lic y o f th e law th a t th e p r o h ib ite d d is c r im in a to r y e f f e c t s
must be av o id ed . In d r a f t i n g r e g u la tio n s on t h i s s u b je c t th e r e -
- 3 f o r e , the t a s k has been to e s t a b l i s h t h e type o f su p p le m en tst i o n which I s p e r m i t t e d by th e law.
.
*8 lmP i l c i t in t h e r e a s o n f o r th e e x c l u s i o n of th o se
e a r n i n g 13,000 o r l e s s t h a t i f s u p p le m e n t a ti o n i s not to f a v o r
^ n 1^ » f l C^ 8;v,!t ^ 0kilo;lder8’ , suEe r ! l8 0 r y and h i s h l y p a i d employees
i n c lu d e d in th e p l a n as a g a i n s t th e lower p a i d employees excluded
th e supplem entary b e n e f i t s must be r e l a t e d t o th e b e n e f i t s under
S o c i a l S e c u r i t y , A ccordingly, th e r e g u l a t i o n s I s s u e d to day adopt
£ ? Sn£nr u l e tha<t p la n e which exclude employees whose e a r n i n g s
a r e $3,000 a y e a r o r l e s s must be i n t e g r a t e d w ith S o c i a l ' S e c u r i t y
in such manner t h a t t h e t o t a l b e n e f i t s r e c e i v e d by employees
the plan ( including t h e i r Social S ecurity b e n e f i t s ) ,
w i l l not be p r o p o r t i o n a t e l y g r e a t e r tha n t h e b e n e f i t s r e c e i v e d
under th e S o c i a l S e c u r i t y Act by employees e a r n i n g $3,000 o r
"There have been i s s u e d , a t t h e same time as t h e r e g u l a
t i o n s , t h r e e r u l i n g s by t h e Income Tax Unit of t h e Bureau of
I n t e r n a l Revenue s p e c i f i c a l l y r e l a t i n g t o th e m a t t e r of d l s c r i * P en sio n p l a n s which adopt as a minimum e l i g i b i l i t y
r e q u ir e m e n t a s a l a r y of $ 3 ,0 0 0 . These r u l i n g s i n d i c a t e two examples of such p l a n s which w i l l be deemed to s a t i s f y t h e r e q u i r e ments o f t h e r e g u l a t i o n s c o n c e r n in g i n t e g r a t i o n w i t h t h e S o c i a l
S e c u r i t y program. The t h i r d d e a l s w ith a p la n which w i l l not
oe^deemed s a t i s f a c t o r y i n t h a t r e s p e c t , I t i s b e l i e v e d t h a t
p u b l i c a t i o n of t h e s e r u l i n g s may prove h e l p f u l i n c o n n e c ti o n
with o t h e r p l a n s of a s i m i l a r n a t u r e , however, th e p r i n c i p l e
? L i n t ? P a H Gn does n o t r e q u i r e any p a r t i c u l a r formula,- I t
i t s e l f to e x p r e s s i o n i n a v a r i e t y of forms, any one of
pf GVe 5^u^ i y s a t i s f a c t o r y , A cc ordingly, each case
a c o n s i d e r e d on i t s m e r i t s w ith o u t r e f e r e n c e to a p r e c o n c e iv ed form, w ith a view to d e t e r m i n i n g w hether i t a c h i e v e s sub
sta n tia l in te g ra tio n ,w
- q Go -
~ 3 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 u b s e q u e n t p u r c h a s e , and the amounl
a c t u a l l y r e c e iv 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 tu r it y d u r in g th e taxable 3
y e a r f o r w hich th e r e t u r n i s m ade, a s o r d in a r y g a in o r l o s s .
T re a s u ry D ep artm en t C i r c u l a r No, 4 1 $ , a s am ended, and t h i s n o tic e , p re-i
s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g o v e rn th e c o n d i tio n s o f t h e i r issue. I
C opies o f th e c i r c u l a r may be o b ta in e d from an y F e d e r a l R e se rv e Bank o r Branch. \
R eserv e Banks and B ra n c h e s, f o llo w in g w hich p u b li c announcem ent w i l l be made by the!
S e c r e t a r y o f th e .T r e a s u r y o f th e am ount and o r i c e ra n g e o f a c c e p te d b i d s .
Those ;
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T r e a s u ry e x n r e s s ly r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any or 1
a l l t e n d e r s , i n w h o le o r i n p a r t , and h i s a c t i o n i n an y such r e s p e c t s h a l l be f i naj |
S u b je c t to th e s e r e s e r v a t i o n s ,- t e n d e r s f o r $ 1 0 0 ,0 0 0 o r l e s s from an y one bidder at 1
99-905 e n te r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Paym ent o f accepted!
t e n d e r s a t th e p r i c e s o f f e r e d m u st be made o r co m p le te d a t th e F e d e r a l Reserve Bank!
i n cash o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s on
J u l y H , 1943
.
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
1
th 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 l l s , s h a l l n o t h av e an y ex em p tio n , as such, 1
and l o s s from th e s a l e
or
o th e r d i s p o s i t i o n o f T r e a s u ry b i l l s s h a l l n o t have any1
s p e c i a l t r e a tm e n t, a s s u c h , u n d e r 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 te d .
The I
b i l l s s h a l l b e s u b j e c t to 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 is e ta x e s , whether!
F e d e r a l o r S t a t e , b u t s h a l l b e exem pt 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 th 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 an y S t a t e , o r an y o f th e p o s s e s s io n s of
th e U n ite d S t a t e s , o r by any l o c a l ta x in g a u t h o r i t y .
F o r p u rp o s e s o f ta x a tio n the I
am ount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U n ited States!
s h a l l be c o n s id e r e d to
be
in te re s t.
Under S e c tio n s 42 and 117 (a ) ( l ) o f the
I n t e r n a l Revenue Code,
as
amended by
S e c tio n 115 o f th e R evenue A ct o f 1941, thej
am ount o f d is 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 ld s h a l l n o t be considered!
to a c c ru e u n t i l such b i l l s s h a l l b e s o l d , redeem ed o r o th e r w is e d is p o s e d o f, and
such 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 a s c a p i t a l a s s e t s .
owner o f T re a s u ry b i l l s
A c c o rd in g ly , the
( o t h e r th a n l i f e in s u r a n c e com oanies) is s u e d hereunder
n eed in c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p ric e paid
TREASURY DEPARTMENT
W ash in g to n
/!
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 9. 19A3__________ •
M
r
I/O
The S e c r e t a r y o f th e T r e a s u r y , b y t h i s p u b li c n o t i c e , i n v i t e s tenders
f o r $ 1 ,0 0 0 ,0 0 0 ,0 0 0
t o r th e re a b o u ts , o f
92 - day T re a s u r y b i l l s , to be issued I
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r pro-
i
July 1 4 . m 3 _____ :__, and w ill
v id e d .
The b i l l s o f t h i s s e r i e s w i l l b e d a te d
m a tu re
October 1 4 , 1943______ , when t h e f a c e am ount w i l l be p a y a b le w ith o u t
W
in te re 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 ly , and i n d e n o m in a tio n s o f $1,000|
$ 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 a t u r i t y v a l u e ) .
T en d ers w i l l be r e c e iv e d a t F e d e r a l R e se rv e Banks an d B ran ch es up to the
c l o s i n g h o u r , two o ’ c lo c k t>, m ., E a s te r n War tim e ,
Monday, July 1 2 , 1943______, 1
T en d e rs w i l l n o t b e r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n .
Each tender 1
m u st be f o r an ev en 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 m u st be expressed
on th e b a s i s o f 1 0 0 , w ith n o t m ore th a n t h r e e d e c im a ls , e . g . , 9 9 .9 2 5 .
may n o t b e u s e d .
Fractions I
I t i s u rg e d t h a t te n d e r s b e made on th e p r i n t e d form s and for- 1
w arded i n th e s p e c i a l e n v e lo p e s w hich w i l l b e s u p p lie d by F e d e r a l R eserve Banks
o r B ran ch es 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 iv e d w ith o u t d e p o s it from in c o r p o r a te d banks and
t r u s t com panies and from r e s p o n s ib le and re c o g n iz e d d e a l e r s i n in v e s tm e n t securi- 1
tie s .
T en d ers from o t h e r s m ust b e acco m p an ied by paym ent o f 2 p e r c e n t rf, the face]
am ount o f T re a s u ry b i l l s a p p l ie d f o r , u n l e s s th e t e n d e r s a r e accom panied by an
e x p r e s s g u a r a n ty o f paym ent b y an i n c o r p b r a t e d bank o r t r u s t company.
Im m e d ia te ly a f t e r th e c l o s i n g h o u r , te n d e r s w i l l be opened a t the Federal
TREASURY DEPARTMENT
Washington
. F O R RELEASE, MORNING NEWSPAPERS
' Fr i day, . J u l y g;- i q b 3 , ,
,
i . Til6 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 , inv i t e s t e n d e r s f o r ; | 1 , 0 0 0 , 0 0 0 , 000 , o r t h e r e a b o u t s o f 92 - d a y
T r e a s u r y b i l l s , t p be i s s u e d on a .•discount'basl,s under compe
t i t i v e and f i x e d - p r i c e b id d in g , as h e r e i n a f t e r p r o v id e d . . The
b i l l s o f t h i s s e r i e s w i l l be . d ated J u l y
lb,
arid w i l l . .
mature O ctober l b , 19bJ, when t h e f a c e 'a m o u n t w i l l . b e p ayable
w ith o u t i n t e r e s t .
T h e y , w i l l be issued- in - 'b e a r e r form o n ly ,
and in denom inations o f 31,000, :$5,000, §1 0 , 000 , $ 1 0 0 , 000 ,
1500,000, and $ 1 ,0 0 0 ,0 0 0 ( m a t u r i t y v a l u e ), ■
B r a n c h e s ^ r + ^ I L ’’^ r e ? e l v ®a * * F e d e r a l R eserve Banks and
Branches up to the. c l o s i n g hou r, two o ' c l o c k -p m E&atern
r f v , h lmei ^ n a a y r o u l y X t l M t l T enders w U i ‘n o t ’b f r e !
oeived a t th e T r e a s u r y D epa rtm ent,-W a shington, Each t e n d e r
®}?-S *?e 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
th n h w w v ^ 6
° " t h e b a s l a ° f 100, w ith n o t more th a n
I t i s ur&Pd&t h « t e t
Sk ’" , - 925- F r a c t i o n s , may not be
It
i s u r g e d , t h a t t e n d e r s De made on t h e p r i n t e d f o r m s a n d
ln t h e c sp5 c i a l en v e lo p es -w h ic h w i l l b e ' s u p p l i e d by
F e d e r a l Reserve Banks o r Branches on a p p l i c a t i o n t h e r e f o r .
ated
bf r.e o e i v f <i w ith o u t d e p o s i t from i n c o r p o r an d , t r u s t companies and from r e s p o n s i b l e and r e c o e n i z e d d e a l e r s in In v e stm e n t s e c u r i t i e s . T enders from o t h l r s ®
must be- accompanied by payment o f ■2 percent, o f t h e faceV f ^ e a s u r y b i l l s applied f o r, u n less the tenders are
accompanied by an express, g u a r a n ty o f payment by an i n c o r p o r a t e d ' b a n k o r t r u s t companyt
c l o s i n g hour, t e n d e r s w i l l be
opened a t t h e F e a e r a l Reserve Banks and Branches, f o l l o w i n g
p u b lio announcement w i l l be made by t h e S e c r e t a r y of
Thnoor e a K m f h ? f t *e f mount and p r i c e range o f accepted, 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 advised o f th e a c c e o ta 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 o f t h e T r e a s u r y 1ex
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 l n p a r t , and h i s a c t i o n i n any such
37-b5
(Over)
2
r e s p e c t s h a l l be f i n a l . S u b je c t t o t h e s e r e s e r v a t i o n s , tend e r s f o r $100,000 o r l e s s from any one b i d d e r a t 99*905 en
t e r e d on a f i x e d - p r i c e b a s i s w i l l be a c c e p te d in f u l l . Pay
ment 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
or completed a t t h e F e d e r a l Reserve Bank in c a sh 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 J u l y 1^, 19^3*
The income d e r i v e d from T r e a s u r y b i l l s , w hether 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 not have any exemption, as such, and l o s e from the sale
or 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 m e n t , as such, u nder F e d e r a l t a x Acts now or
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 to e s t a t e , in
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 hether F e d e r a l or
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 oh 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 of t h e p o s s e s s i o n s of t h e U n ite 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 p u rp o se s 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 sold by
th e U n ite 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 U-2 and 117 ( a ) ( I ) 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 115 o f t h e Revenue Act of 19^1, the
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 sold,
s h a l l not be c o n s i d e r e d to a c c ru 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 is p o s e d o f , and such b i l l s are
excluded 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 . Accordingly,
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
companies) Issued h e r e u n d e r need i n c l u d e in h i s income ta x
r e t u r n only th 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 hether on o r i g i n a l i s s u e o r on su b se q u en t purchase,
-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
demption 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 the
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 D e p a r t m e n t C i r c u l a r No. h l S , a s 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
govern th e c o n d i t i o n s o f t h e i r i s s u e .
C opies o f th e c ir c u la r
may b e o b t a i n e d fro m an y F e d e r a l R e s e r v e Bank o r B r a n c h ,
o0o<-
-
6
-
Mr. Bartley has served as State Administrator for the War Savings Staff
since A pril, 1941*
Montanans have bought $72,579>615 worth o f War Bonds s in c e May 1, 1941,
Of the S t a t e 's 53 firm s employing more than 100 p erso n s, a l l have Payroll
Savings P la n s.
Setting an example for in it ia t iv e , Montana carried out a State-wide
campaign to have a figh tin g plane named for every county in the State,
plus a few extra. One plane was purchased for each of the 57 counties,
and in addition two bombers were bought to be named for the State and two
others to be named for organizations. The bonds sa les involved reached
$9,575,000.
(N ote: A ll t o t a l s given above fo r War Bond purchases ty S ta te s are
fo r the period from May 1 , 1941, when th e S e r ie s E, F and G War Savings Bonds |
were inaugurated, through May 3 1 , 1943*)
<
Mr. Wood, who was born in Jamestown, North Dakota, i s a graduate o f the
U niversity o f Minnesota, and i s President and Director of the Harold E. Wood
Company o f S t. Paul. Mr. G ilstad has been Deputy Administrator of the State
War Savings S ta ff since June, 1941*
Arthur D. Reynolds, •who has been State Administrator for the Minnesota
War Savings S ta ff, i s retirin g to devote a l l of h is time to h is increased
duties as C ollector o f Internal Revenue.
<
!
Since May 1, 1941, War Bond sa les in Minnesota have aggregated
$367,609,848. Of Minnesota’s 544 firm s, 539 firms now have Payroll Savings ELansI
in operation.
During the Second War Loan Drive, Minnesota sponsored a large number
of fig h tin g craft for the Navy, including eigh t a ircra ft rescue boats, four
amphibian, tractors, six harbor picket boats, two buoy boats, two submarine
chasers, fiv e landing barges, three tank lig h te r s, a motor torpedo boat and
a plane rearming boat. The State also provided funds equivalent to the cost
of a heavy bomber, a medium bomber and two pursuit ships for the Army.
MISSOURI— -Walter W. Head of S t. Louis, State Chairman;
Dan M. Nee of Kansas C ity, Vice Chairman;
Earl H. Shackelford o f Jefferson City, Executive
Manager.
Mr. Head, a native o f I l l in o i s , i s President o f the General American
L ife Insurance Company o f S t. Louis, and also i s President of the National
Council, Boy Scouts of America. From 1903 to 1933 he was engaged in various
capacities in the banking business. Mr. Nee i s C ollector of Internal Revenue
at Kansas City and formerly served as State Administrator on the Missouri
War Savings S ta ff. Mr. Shackelford has been Deputy State Administrator since
A pril, 1941.
Purchases o f War Bonds by the people o f Missouri have aggregated
$453,203,194 since May 1, 1941* The Payroll Savings Plan has been well
received in Missouri, with 943 of the s ta te 's 1,036 firms having 100 or more
employees participating in the program.
■B
Missouri recen tly raised funds through sp ecial bond campaigns to equal
the purchase price of 33 pursuit ships at $75,000 each and 27 bombers, some
at $175,000 and the others at $300,000 each.
MONTANA— A. T. Hibbard of Helena, State Chairman;
William H. Bartley of Great F a lls, Executive
Director.
Mr. Hibbard, President of the Union Bank and Trust Company of Helena,
has been Chairman of the State War Savings Committee since November, 1941*
|
- 4 -
KENTUCKY---- S* Albert P h illip s o f L o u isv ille, Chairman for
Western Kentucky; David F. Cocks o f L o u isv ille,
Vice Chairman; William F. M iller of L o u isv ille,
Director o f the Banking and Investment Division;
L isle Baker, Jr*, o f L o u isv ille, Director of
P ublicity; J• S. Bate, Jr*, of L o u isv ille,
Executive Manager.
Ben Williamson, Jr*, of Ashland, Chairman for. s
Eastern Kentucky; Joshua B* Everett of May^llle,
Vice Chairman; Ufai. H. Courtney o f Lexington,
Chairman o f the Executive Committee; A* A* Hines
of Ashland, Executive Manager.
As under the former War Savings Program, the War Finance work for the
State w ill be carried on by two p a ra llel organizations, one for Western
Kentucky and the other for Eastern Kentucky.
Mr.- P h illip s i s Vice President o f the F ir st National Bank of Louisville,
and has, since December, 1941, been State Administrator for the War Savings *
S ta ff. __Mr. Cocks i s a graduate o f Georgia Tech and the Atlanta Law School
and i s Vice President and Treasurer of the Standard Oil Company of Kentucky,
Mr. M iller i s Vice President o f the C itizens Union Bank of L ou isville, and
President o f the Kentucky Bankers A ssociation. He has served as banking
representative on the War Savings Committee since January, 1942. Mr. Baker
i s a graduate o f Center College and i s Vice President o f the L ouisville
Courier-Journal. Mr. Bate has been Deputy State Administrator of the War
Savings S ta ff since December, 1941•
. ,
,
/
Mr. Williamson, the War Financp^Chairman fo r Eastern Kentucky, has
served the Treasury Department as Chairman of tho War Savings Staff since
December, 1941* Mr. Everett, former Vice President of the Bankers Trust
Company o f New York, has business in te r e sts in Mason County, Kentucky, and
i s a director in several insurance concerns. Mr. Courtney, a native of
Wausau, Wisconsin, i s President of the F ir st National Bank and Trust Company
of Lexington. Mr. Hines has been serving as Deputy State Administrator of
the War Savings S ta ff.
Kentuckians have invested $187,008,568 in War Bonds since May 1, 1941.
The S ta te's record in the Payroll Savings Plan shows that o f 342 firms
employing 100 or more persons, 315 are participating in the program.
MINNESOTA---- Oswald, J. Arnold of Minneapolis, State Chairman;
Harold E. Wood o f S t. Paul, Executive Vice
Chairman; Lj^f G ilstad o f Minneapolis, Executive
Manager.
Mr. Arnold, President o f the Northwestern National Insurance Company,
has been chairman of the State War Savings Committee since June, 1941.
!
*
- 3 -
ARIZONA— Walter R. Bimson of Phoenix, State Chairman}
James P. Boyle of Tucson, Vice Chairman}
Joseph E. Refsnes o f Phoenix, Executive Director;
Oren R. Frasier of Phoenix, Executive Manager.
Mr. Bimson, a native o f Berthoud, Colorado, i s President and Director
of the V alley National Bank of Phoenix. He was a ctiv e in the former Victory f
Fund Committee for the State* Mr. Refsnes i s a partner of Refsnes, Ely, Beck j
and Company of Phoenix. Mr. Boyle and Mr. Frasier served the Treasury as
members of the former War Savings S ta ff, the former as State Chairman since
August, 1941, and the la tte r as Deputy State Administrator since September, 1941]
William P. Stuart, former State War Savings Administrator, w ill retire
from a ctive War Bond work to devote a l l o f h is time to h is duties as Arizona’s 1
Collector o f Internal Revenue.
Sales of War Bonds in Arizona since May 1, 1941, amount to $49,800,531,
A ll of the 89 firms in Arizona employing 100 or more persons have Payroll
Savings Plans in operation.
During v i s i t s by a captured Japanese submarine to fiv e Arizona cities,
War Bond and Stamp sa les equalled $2.64 per capita for the places visited,
with the to ta l reaching $ 438, 000.
DELAWARE---- Henry T. Bush o f Wilmington, State Chairman;
Donald P. Ross o f Wilmington, Executive Vice Chairman.
Both Mr. Bush and Mr. Ross have been a c tiv e ly connected with the War Bond I
Program, as members of the former War Savings S ta ff. Mr. Bush, President of
the Farmers Bank o f Delaware, has served as Chairman o f the State War Savings 1
Committee, and Mr. Ross has been State Administrator since January, 1942.
Purchases of War Bonds in Delaware since May 1, 1941, have amounted to
$54,071,743* Of the 90 firms in Delaware employing more than 100 persons,
85 now have Payroll Savings Plans in operation.
In a sin gle day, while a captured Japanese submarine was on exhibition,
War Bond and Stamp sa le s in Wilmington reached $2,200,000.
I
IDAHO-— John A* Schoonover o f Boise, State Chairman.
Mr. Schoonover, President of the Idaho F ir st National Bank of Boise,
has beeri chairman of the War Savings Committee fo r Idaho since July, 1941.
His r e sp o n sib ilitie s are enlarged under the new State War Finance Committee
s,etup.
Sales o f War Bonds in Idaho since May 1, 1941, amount to $51,752,650.
Of the 43 concerns in Idaho employing 100 or more persons, a ll have Payroll
Savings Plans*
|
1
Getting more bonds into the hands of more and more people i s
an objective of the new plan of war finance operations.
Secretary
Morgenthau expects the plan, with i t s increased decentralization, to
help make possible a substantial increase in the number of volunteer
bond salesmen and saleswomen throughout the country.
He b elieyes i t
also w ill bring about more e ffe c tiv e collaj^^jfeition between the Treasury
and large groups xsueh ae-la b o r ■bodies-.
Promotion o f the sale of War Savings Bonds and other Government
se cu r itie s to individuals w ill be given particular attention by the new
committees.
Every e ffo r t w ill be made to expand participation in pay
r o ll savings plans.
Today’ s appointments as announced by the Secretary are:
cr
L
Cl
c
'■“''-c-oOCvl
TKChtOHy
fy/yju*9 X w irv u ^
jjjlj
Appointments of new State War Finance chairmen and numerous
assisting officials for seven States were announced today by Secretary
of the Treasury Morgenthau.
The appointments launch the Treasury* s
reorganized War Finance program in the States of Arizona, Delaware,
Idaho, Kentucky, Minnesota, Missouri and Montana.
Most of the appointees are well acquainted with their duties,
having already given outstanding service to the Treasury in War Bond
selling or in War Loan drives.
•'Every man has been chosen with a view to giving our localized
bond-selling efforts the impetus they must have to put over our War
Finance program for the rest of the year,** Secretary Morgenthau said.
"I am gratified that individuals so well qualified have agreed to help
shoulder our big task.
The States in which they will take charge all
have done well in the past, and their acceptance of the appointments is
solid ground for optimism that more and more bonds will be sold in these
States in the future."
The new State chairmen head State War Finance Committees which
represent mergers of the former State War Savings Staffs and the former
Victory Fund Committees.
They will direct the Third War Loan Drive,
startin g September 9, and also the continuing sale o f Series E, F and
G War Savings Bonds.
/
^j|jwsS
•v;--
I
^Sy%lllSHfsss
m
BjilPS
HELIAS1 NO*
H
* July
* S
imm
, 1943
WASHINGTON, P* C.-The appointment was announced today by Secretary
Morgenthau of A. T. Hibbard of Helena as State Chairman, and William
H* Bartley of Great Falls as Executive Director of the War Finance
Committee for Montana*
Both of the appointees have previously served on the former War
Savings Staff. Mr. Hibbard, President of the Union Bank and Trust Company,
has been State Chairman since November, 1941, and Mr. Bartley has served
as State Administrator since April, 1941.
■fei*
pSKKfk
ig
The new War Finance Committee now being organised merges the former
War Savings Staff and the Victory Fund Consulttee, developed la s t summer
to handle special War Loan Drives*
The War Finance Committee w ill manage
both special drives and the continuing sale of Series E, F and G bonds*
In particular, the new organization undertakes the task of Increasing
;.;^ ;- '/.C
sharply purchases by individuals of War Bonds and other Government
securities.
mm
§
K p i
feSSEsv*
k
RELEASE NO.
July
1943
WASHINGTON, D. C.-The appointment was announced today by Secretary
Morgenthau of A. T. Hibbard o f Helena as State Chairman, and Wi l l iam
H. Bartley o f Great F a lls as Executive Director o f the War Finance
Committee for Montana.
Both o f the appointees have previously served on the former War
Savings S ta ff.
Mr. Hibbard, President of the Union Bank and Trust Company,
has been State Chairman since November, 1941, and Mr. Bartley has served
as State Administrator since A pril, 1941.
The new War Finance Committee now being organized merges the former
War Savings S ta ff and the Victory Fund Committee, developed la s t summer
to handle sp ecia l War Loan Drives.
The War Finance Committee w ill manage
both sp ecial drives and the continuing sa le o f Series E, F and G bonds.
In particu lar, the new organization undertakes the task of increasing
sharply purchases by individuals o f War Bonds and other Government
s e c u r itie s .
0
is m s s m
July
, 19-43
WASHINGTON, D. C,-Secretary Morgenthau announced today the appointment
of Walter W. Bead of S t. Louie as State Chairman, and Earl H» Shackelford
as Executive Manager of the far Finance Committee for Missouri.
Mr. Head, a native of I llin o is , is President o f the General American
L ife Insurance Company o f S t. Louis, having been in the banking business
P*-.
___
f t / r i y .
1903/ He is also president of the national Council, Boy Scouts
of America*
Mr* Shackelford has been since April, 1941* Deputy State Adminis
trator of the War Savings Program in Missouri,
He w ill continue his
service to the Treasury Department as Executive Manager of the new
committee* Mr* Dan M. Bee, who has been State Administrator for the
Missouri War Savings S ta ff, is retiring to devote a ll of his time to
cKA^ra,
his fcssfc as Collector of Internal Revenue,
The recently organised War Finance Committee merges the former
War Savings Staff and the Victory Fund Committee, developed la st summer
to handle special War Loan drives.
The new organization w ill undertake
the task of greatly increasing current purchases of War Bonds and other
Government secu rities.
iCMt
RELEASE NO*.
July
JiX
, 1943
WASHINGTON, D. G•-Secretary Morgenthau announced today the appointment »
T
m
of Walter W. Head of St, Louis as State Chairman,'and Earl H. Shackelford
A
as Executive Manager of the War Finance Committee for Missouri.
Mr. Head, a native of I llin o is , is President o f the General American
fife Insurance Company of St. Louis, having been in the banking business
x r He is also president of the National Council, Boy Scouts
1903/
of
Mr. Shackelford has been since April, 1941, Deputy State Adminis
tra to r of the War Savings Program in Missouri.
He w ill continue his
service to the Treasury Department as Executive Manager of the new
committee. Mr. Dan M. Nee,^who has been State Administrator for the
Missouri War Savings S ta ff, is^retxring-^to^ v ot e -a r r^ T lB > time to
his tea* as ColIi^rfor~or”’^ ^
.
^The recently organized War Finance Comnittee merges the former
War Savings S taff and the Victory Fund Committee, developed la s t summer
to handle special War Loan drives.
The new organization w ill undertake
the task of greatly increasing current purchases of War Bonds and other
Government se c u ritie s.
7^
V
RELEASE HO*
m
July
■
, 1943
*
WASHINGTON, 0* C.--Secretary Morgenthau announced today three appointments
to the War Finance Committee for Minnesota.
Oswald J. Arnold of Minneapolis
w ill serve as State Chairman, Harold E. Wood o f S t. Paul as Executive
Vice Chairman, and L eif Gils tad as Executive Manager.
Mr. Arnold, President o f the Northwestern National Insurance
mm
R
ill*
Company, has been chairman o f the sta te War Savings Committee since June,
1941.
Mr. Wood, born in Jamestown, North Dakota, a graduate o f the University
|«
M
o f Minnesota in 1918, i s President and Director of the Harold E. Wood
Company o f S t. Paul.
Mr. G ilstad has been since June, 1941, Deputy Administrator of
the War Savings S ta ff.
He w ill continue ills services to the Treasury
Department as Executive Manager of the new committee*
Mr* Arthur D.
Reynolds, who has been State Administrator for the Minnesota War Savings
S ta ff, i s r e tir in g to devote a l l of his time to the CoHectorship of
WggSS
Internal Revenue.
The uaw War Finance Committee merges the former War Savings S ta ff,
in operation in the sta te since May, 1941, and the Victory Fund Committee,
organised la s t summer to handle the sp ecia l War Loan d rives.
II
War Finance Committee w ill manage both sp ecia l drives and the continuing
sa le s of Series E, F and 0 bonds.
m
The
In particu lar, the new organization
undertakes the task of greatly increasing the purchase by individuals
of War Bonds and other general Treasury s e c u r itie s .
1
RELEASE NO*
July
, 1943
■
WASHINGTON, D. C.-Secretary Morgenthau announced today three appointments
to the War Finance Committee for Minnesota.
9
Oswald J. Arnold of MinneapaH11
w ill serve as State Chairman, Harold E. Wood o f S t. Paul as Executive
Vice Chairman, and L eif Gilstad as Executive Manager.
Mr. Arnold, President o f the Northwestern National Insurance
Company, has been chairman o f the sta te War Savings Committee since June,
1941.
Mr. Wood, bom in Jamestown, North Dakota, a graduate o f the University!i
o f Minnesota in 1918, i s President and Director o f the Harold E. Wood
Company o f S t. Paul.
Mr• G ilstad has been since June, 1941, Deputy Administrator of
the War Savings S ta ff.
He w ill continue his services to the Treasury
Department as Executive Manager o f the new committee.
Mr. Arthur D.
Reynolds, who has been State Administrator for the Minnesota War Savings
S ta ff, i s r e tir in g to devote a l l of h is time to the Collectorship of
Internal Revenue.
The new War Finance Committee merges the former War Savings Staff,
in operation in the sta te sin ce May, 1941, and the Victory Fund Committee,
organized la s t summer to handle the sp ecia l War Loan d rives.
The
War Finance Committee w ill manage both sp ecia l drives and the continuing
sa le s o f Series E, F and G bonds.
In particu lar, the new organization
undertakes the task o f greatly increasing the purchase by individuals
.
of War Bonds and other general Treasury se c u r itie s .
j
2
include J, B. Everett as Vice Chairman, Wa. H. Courtney as Chairman of
the Executive Committee, and A* A. Hines as Executive Manager. Mr.
Courtney, a native o f Wausau, Wisconsin, i s President o f the F irst National !
Sank and Trust Company o f Lexington.
Mr. Hines ha© been Deputy administrator
o f the War Savings S ta ff
The War Finance Committee s i l l merge the former War Savings s ta f f ,
in operation in the sta te since December, 1941, and the Victory Fund
Committee, organised la s t summer to handle the sp ecia l War Loan drives.
The War Finance Committee w ill manage both sp ecia l drives and the continuing! i
sa les o f Series E, P and Q bonds.
In p articu lar, the new organisation
undertakes the task o f greatly increasing the purcliase by individuals
o f War Bonds and other general Treasury s e c u r itie s .
EELEA3E HO
July
!
» 1943
W
ASHINGTON, D. C.-Secretary of the Treasury HenryKorgenth&u, Jr*,
announced today the appointments of several members of the W
ar finance
Cotmaittees for Kentucky* As tinder the war Savings Program, the W
ar
Bondwork for the state will be carried on by two parallel organisations,
one for Western Kentucky and the other for the eastern part of the state*
Mr. Korgenthau announced that he has appointed 5. Albert P hillips
as chairman for Western Kentucky* M
r* P h illip s , Vice President o f the
F irst National B
ank of L o u isv ille, has since December, 1941, been State
Administrator of the W
ar Savings Program.
NOther officers of the Western Committee will include David F. Cocke
as Vice Chairman, WilliamF. Miller as Director of the Banking and Invest
ment Division, L i s l e J r . , as Director of Publicity, and J. S.
Bate, Jr*, as Executive Manager. Mr. Cocks, a graduate of Georgia Tech
and the Atlanta LawSchool, is Vice president and Treasurer of the Standardj
Oil Company of Kentucky. Mr. Killer, Vice President of the Civiaons
Union Bank of Louisville, ami President of the Kentucky Bankers Associa
tion, has served as banking representative on the W
ar Savings Committee
since January, 194*2* M
r# Baker, graduate of Center College in 1922, is
Vice President of the Louisville Courier Journal. Mr. Bate has been
Deputy Administrator of the W
ar Savings Staff since December, 1941.
In Eastern Kentucky, said Secretary Horgenthau, BenWilliamson, Jr,,
will be W
ar Finance Chairman. H®has served the Treasury Department as
far Saving* Chairman since December,1941» The ©astern comittee will
-
.
2
-
y
include J. B. Everett as Vice Chairman, Wm. H. Courtney as Chairman of
the Executive Committee, and A. A. Hines as Executive Manager.
Mr.
Courtney, a native o f Wausau, Wisconsin, i s President of the F irst National
Bank and Trust Company of Lexington.
Mr. Hines has been Deputy Administrator!
o f the War Savings S ta ff
The War Finance Committee^will merge the former War Savings S taff,
in operation in the sta te since December, 19-41, and the Victory Fund
Committee, organized la s t summer to handle the sp ecial War Loan drives.
The War Finance Committee w ill manage both sp ecia l drives and the continuing
sa les of Series E, F and G bonds.
In p articu lar, the new organization
undertakes the task o f greatly increasing the purchase by individuals
o f War Bonds and other general Treasury s e c u r itie s .
RELEASE NO
July
, 1943
WASHINGTON, D. C.-Secretary of the Treasury Henry Morgenthau, J r .,
announced today the appointments o f several members o f the War Finance
Committees for Kentucky.
As unaer the War Savings Program, the War
Bond work for the sta te w ill be carried on by two p a r a lle l organizations,
one for Western Kentucky and the other for the eastern part o f the state.
Mr. Morgenthau announced that he has appointed S. Albert P hillips
as chairman for Western Kentucky.
Mr. P h illip s , Vice President of the
F irst National Bank of L o u isv ille , has since December, 1941, been State
Administrator of the War Savings Program.
Other o ffic e r s o f the Western Committee w ill include David F. Cocks
as Vice Chairman, William F. M iller as Director of the Banking and Investment D ivision, L isle Beiswi, J r ., as Director of P u b licity , and J. S.
Bate, J r ., as Executive Manager.
Mr. Cocks, a graduate of Georgia Tech
and the Atlanta Law School, i s Vice President and Treasurer of the Standard j
Oil Company o f Kentucky.
Mr. M iller, Vice President of the Citizens
Union Bank o f L o u isv ille , and President of the Kentucky Bankers Associa
tio n , has served as banking representative on the War Savings Committee
since January, 1942.
Mr. Baker, graduate of Center College in 1922, is
Vice President o f the L o u isv ille Courier-*Journal.
Mr. Bate has been
Deputy Administrator o f the War Savings S ta ff since December, 1941.
In Eastern Kentucky, said Secretary Morgenthau, Ben Williamson, Jr.,
w ill be War Finance Chairman.
He has served the Treasury Department as
War Savings Chairman since December,1941« The eastern committee w ill
B jU T im m
sr2\
f
i
RELEASE NO.
July
, 1943
WASHINGTON, D* C.--Secretary Morgenthau announced today the appointment
of John A* Schoonover as State Chairman o f the new War Finance Committee
for Idaho*
Mr# Schoonover, president of the Idaho F irst National Bank of Boise,
has since July o f 1941 served as State Chairman o f the former War Savings
Committee in Idaho#
He w ill continue h is services to the Treasury DapartoaiJ
as Chairman o f the new committee#
The War Finance committee merges the former War Savings S ta ff, in
operation in the sta te since July, 1941, and the Victory Fund Committee,
organised la s t summer to handle the sp ecial War Loan drives*
The
War Finance Committee w ill manage both sp ecial drives and the continuing
sa les o f Series £, F and G bonds#
In p articu lar, the new organisation
undertakes the task o f greatly increasing the purchase by individuals
o f War Bonds and other general Treasury secu rities*
gm
I S ®
rill
I S
111
m
US
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W w
Wmm
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—
RELEASE NO
July
1943
WASHINGTON, D. C.-Secretary Morgenthau announced today the appointment
of John A. Schoonover as State Chairman of the new War Finance Committee
for Idaho.
• Mr. Schoonover, President of the Idaho F irst National Bank of Boise,
has since July of 1941 served as State Chairman of the former War Savings
Committee in Idaho. He w ill continue his services to the Treasury Department
as Chairman of the new committee.
The War Finance Committee merges the former War Savings S taff, in
operation in the state since July, 1941, and the Victory Fund Committee,
organized la st summer to handle the special War Loan drives.
The
War Finance Committee w ill manage both special drives and the continuing
sales of Series E, F and G bonds.
In particular, the new organization
undertakes the task of greatly increasing the purchase by individuals
of War Bonds and other general Treasury secu rities.
BELEA3E HO
July
, 1943
WASHINGTON, D* C.-Secretary Morgenthau announced today the appointment
o f Henry T. Bush o f Wilmington to be State Chairman, and of Donald P.
Eoso .as Executive ''OAmnetur o f the
W
ar Finance
Committee for Delaware,
Both those appointees have been a c tiv e ly connected with the far
Bond Program under the former War Saving© Staff#
Mr* Bush, President of
the Farmers Bank of Delaware, has served as s ta te Chairman o f the far
Savings Committee, and Mr* Boss has been State Administrator since January,
1942*
They w ill continue th eir services to the Treasury Department as
members o f the new committee*
The War Finance Committee w ill merge the former War Saving® S taff,
in operation in the state sin ce January, 1942, and the Victory Fund
Committee, organised la s t summer to handle the sp ecial War Loan drives*
The War Finance Committee w ill manage both sp ecial drives and the continuing
sa le o f Series 1 , F and G bonds*
In p articu lar, the new organization
undertakes the task o f greatly increasing the purchase by individuals
o f War Bonds and other general Treasury secu rities*
RELEASE NO*
July-
1943
WASHINGTON, D* C.-Secretary Morgenthau announced today the appointment
o f Henry T* Bush of Wilmington to be State Chairman, and of Donald P,
Ross as Executive Biape at or o f the War Finance Committee for Delaware*
Both 19w e appointees have been a c tiv e ly connected with the War
Bond program under the former War Savings Staff*
Mr. Bush, President of
the Farmers Bank of Delaware, has served as State Chairman o f the War
Savings Committee, and Mr* Ross has been State Administrator since January,
1942.
They w ill continue th e ir services to the Treasury Department as
members o f the new committee*
The War Finance Committee w ill merge the former War Savings Staff,
in operation in the sta te since January, 1942, and the Victory Fund
Committee, organized la s t simmer to handle the sp ecial War Loan drives.
The War Finance Committee w ill manage both sp ecial drives and the continuing
sa le o f Series E, F and G bonds*
In p articu lar, the new organization
undertakes the task o f greatly increasing the purchase by individuals
o f War Bonds and other general Treasury s e c u r itie s .
RELEASE NO.
July
, 1943
WASHINGTON, D. C.-Secretary Morgenthau announced today four appointments
to the War Finance Committee for Arizona.
Walter R. Bias on of phoenix
w ill serve as State Chairman, James P. Boyle as Vice Chairman, Joseph
E. Refsnes as Executive Director, and Oren R. Frasier as Executive Manager!
Mr. Simeon, a native o f Berthoud, Colorado, i s president and director
o f the Valley National Bank o f Phoenix.
Mr. Refsnes i s a partner of
Refsnes, Ely, Beck and Company o f Phoenix.
Mr. Boyle and Mr. Frasier
have served the Treasury as members o f the former War Savings S ta ff,
the former as State Chairman sin ce August, 1941, and the la tte r as
deputy Administrator since September, 1941«
Mr. William JP. Stuart,
former War Savings Administrator, w ill r e tir e from h is active War Bond
work to devote a l l h is time to the C ollectorship of Internal Revenue.
The new War Finance Committee now being organized merges the former
War Savings S ta ff and the Victory Fund Committee, developed la s t summer
i
to handle special War Loan Drives.
The War Finance Committee w ill manage
both sp ecial drives and the continuing sale o f Series E, F and G bonds.
In particu lar, the new organization undertakes the task o f increasing
sharply purchases by individuals of War Bonds and other Government
secu rities#
3Sf
WASHINGTON, D. C.-Secretary Morgenthau announced today four appointments
to the War Finance Committee for Arizona.
Walter R. Bimson of Phoenix
w ill serve as State Chairman, James P. fiiy^^as^Vice Chairman, Joseph
E. Refsnes as Executive Director, and Oren R. Frasier as Executive Manager.
Mr. Bimson, a native o f Berthoud, Colorado, i s president and director
o f the Valley National Bank o f Phoenix.
Mr. Refsnes i s a partner of
Refsnes, Ely, Beck and Company o f Phoenix.
Mr. Boyle and Mr. Frasier
9
have served the Treasury as members of the former War Savings Staff,
the former as State Chairman since August, 1941, and the l a t t e r as
Deputy Administrator since September, 1941. Mr. William P. Stuart,
former War Savings Administrator, will r e t i r e from his active War Bond
work to devote a l l his time to the Collectorship of Internal Revenue.
The new War Finance Committee now being organized merges the former
Aar Savings o ta ff and the Victory Fund Coumittee, developed la s t summer
to handle sp ecial War Loan Drives.
The War Finance Committee w ill manage
both sp ecial drives and the continuing sale o f Series E, F and G bonds.
In p articu lar, the new organization undertakes the task o f increasing
sharply purchases by individuals of War Borxls and other Government
s e c u r itie s .
1/Wv
\j y L
tAr%^
***
MR. Schwarz
TREASURY DEPARTMENT
W ashington
F o r Im m ediate R e le a s e
F r id a y , J u l y 9, 19^3
P r e s s S e rv ic e
No,
A p po in tm en ts o f new S t a t e War F in a n c e ch airm en and num erous
a s s i s t i n g o f f i c i a l s f o r sev en S t a t e s w ere announced to d a y by
S e c r e ta r y o f th e T re a s u ry M orgenthau*
The a p p o in tm e n ts la u n c h
th e T r e a s u r y ’ s r e o r g a n iz e d War F in a n c e program i n th e S t a t e s o f
A riz o n a , D elaw are, Id a h o , K entucky, M in n e so ta , M is s o u ri and M ontana.
Most o f th e a p p o in te e s a r e w e ll a c q u a in te d w ith t h e i r d u t i e s ,
h a v in g a l r e a d y g iv e n o u ts ta n d in g s e r v ic e t o th e T re a s u ry i n War Bond
s e l l i n g o r i n War Loan d r i v e s ,
HE v ery man h a s been ch o sen w ith a v iew to g iv in g ou r l o c a l i z e d
" b o n d -s e llin g e f f o r t s th e im p e tu s th e y m ust have to p u t o v er our War
F in a n c e program f o r th e r e s t o f th e y e a r , ” S e c r e ta r y M orgenthau s a i d .
”1 am g r a t i f i e d t h a t i n d i v i d u a l s so w e ll q u a l i f i e d have a g re e d to h e lp
s h o u ld e r our h ig ta sk * The S t a t e s i n w hich th e y w i l l , ta k e c h a rg e a l l
have done w e ll in th e p a s t , and t h e i r a c c e p ta n c e o f th e a p p o in tm e n ts i s
s o l i d ground f o r o p tim ism t h a t more and more "bonds w i l l he s o ld i n th e s e
S t a t e s in th e f u t u r e , ”
The new S t a t e ch airm en h ead S ta t e War F in a n c e C om m ittees w hich
r e p r e s e n t m e rg e rs o f th e fo rm e r S t a t e War S a v in g s S t a f f s and th e fo rm er
V ic to ry Fund C om m ittees, , They w i l l d i r e c t th e T h ird War Loan D riv e ,
s t a r t i n g S eptem ber 9, arid a l s o th e c o n tin u in g s a le o f S e r ie s E, F and
G War S av in g s B onds,
(J e ttin g more bonds i n t o th e h an d s o f more and more p e o p le i s
an o b j e c t i v e o f th e new p la n o f war f in a n c e o p e r a t io n s .
S e c r e t a r y M orgenthau e x p e c ts th e p la n , w ith i t s in c r e a s e d d e
c e n t r a l i z a t i o n , to h e lp make p o s s i b le a s u b s t a n t i a l i n c r e a s e in th e
number o f v o lu n t e e r bond salesm en and salesw om en th ro u g h o u t th e
c o u n try . He b e l ie v e s i t a l s o w i l l b r in g ab o u t more e f f e c t i v e c o l
l a b o r a t i o n betw een th e T re a s u r y and l a r g e g ro u p s w hich a r e o rg a n iz e d
on a s t a t e b a s i s - lu n c h eo n c lu b s , la b o r g ro u p s , b u s in e s s a s s o c i a t i o n s ,
women’ s c lu b s , e t c .
P ro m o tio n o f th e s a l e o f War S av in g s Bonds and o th e r Government
s e c u r i t i e s to in d i v i d u a l s w i l l be g iv e n p a r t i c u l a r a t t e n t i o n by th e new
committees*. E v ery e f f o r t w i l l be made to expand p a r t i c i p a t i o n in p ay
r o l l s a v in g s p la n s .
T oday’ s a p p o in tm e n ts a s announced by th e S e c r e t a r y a r e :
-
2-
AHIZONA— -W alter R, Bimson o f p h o e n ix , S t a t e Chairm an;
Jam es p , B oyle o f Tucson, V ice Chairm an;
J o s e p h E. R e fs n e s o f p h o e n ix , E x e c u tiv e D ir e c t o r ;
O ren R. F r a s i e r o f P h o en ix , E x e c u tiv e M anager.
Mr« Bimson, a n a t i v e o f B erth o u d , C o lo ra d o , i s P r e s id e n t and
D ir e c t o r o f th e V a lle y R a tio n a l Bank o f p h o e n ix . He was a c t i v e i n
th e fo rm er V ic to r y pund C om m ittee f o r th e S t a t e . Mr. R e fs n e s is'
a p a r t n e r o f R e fs n e s , E ly , B eck and Company o f p h o e n ix . Mr. B oyle
and Mr. F r a s i e r s e rv e d th e T re a s u ry a s members o f t h e fo rm e r War
S av in g s S ta f f s th e fo rm er a s S t a t e Chairm an s in c e A u g u st, 1941, and
th e l a t t e r a s D eputy S t a t e A d m in is tr a to r s in c e S ep tem b er, 1941 ,
W illiam P , S t u a r t , form er S t a t e War S a v in g s A d m in is tr a to r , w i l l
r e t i r e from a c t i v e War Bond w ork to d e v o te a l l o f h i s tim e to h i s
d u t i e s a s A r iz o n a ’ s C o ll e c t o r o f I n t e r n a l R evenue.
S a le s o f War Bonds in A riz o n a s in c e May 1, 1941f amount to
$ 4 9 ,8 0 0 ,5 3 1 * A ll o f th e 89 firm s i p A riz o n a em p loying 100 o r more
p e rs o n s hav e p a y r o l l S a v in g s p la n s i n o p e r a t io n .
D u rin g v i s i t s by a c a p tu r e d ,J a p a n e s e su b m arin e to f i v e A riz o n a
c i t i e s , War Bond and Stamp s a l e s e q u a lle d $ 2 .6 4 p e r c a p i t a f o r th e
p la c e s v i s i t e d , w ith th e t o t a l r e a c h in g $ 4 3 8 ,0 0 0 .
PEhAWAHE*— H en ry T. Bush o f W ilm ington, S t a t e C hairm an;
D onald p . R oss o f W ilm ington, E x e c u tiv e V ice C hairm ap,
B oth Mr* Bush and M r. R oss have been a c t i v e l y c o n n e c te d w ith th e
War Bond pro g ram , a s members o f th e fo rm e r War S a v in g s S t a f f . Mr, p u sh ,
p r e s i d e n t o f th e F arm ers Bank o f D elaw are, h a s s e rv e d a s Chairm an o f
th e S t a t e War S a v in g s C om m itteef and Mr. R oss h a s been S t a t e A dm inis
t r a t o r s in c e J a n u a ry , 1942.
P u rc h a s e s o f War Bonds in D elaw are s in c e May 1, 1941, have am ounted
to $ 5 4 ,0 7 1 ,7 4 3 . Of th e 90 f ir m s in D elaw are em ploying more th a n 100 p e r
so n s, 85 now hav e p a y r o l l S a v in g s p la n s i n o p e r a t io n .
In a s i n g l e d ay , w h ile a c a p tu r e d J a p a n e s e su b m arin e was on e x h i
b i t i o n , War Bond and Stamp s a l e s in W ilm ington re a c h e d $ 2 ,2 0 0 ,0 0 0 *
IDAHO-----Jo h n A. Schoonover o f B o is e , S t a t e C hairm an.
Mr. S ch o o n o v er, p r e s i d e n t o f t h e Id ah o F i r s t R a t io n a l Bank o f B o ise ,
h a s been ch airm an o f th e War S av in g s Com m ittee f o r Id ah o s in c e J u ly , 1941.
H is r e s p o n s i b i l i t i e s a r e e n la r g e d u n d e r th e new S t a t e War F in a n c e Comm ittee
s e tu p .
S a le s o f War Bonds i n Id ah o s ip c e May 1, 1941, amount to $£>!,.752 , 650 .
Of th e 43 c o p c e rn s ip Id ah o ejnployipg 100 o r more p e r s o n s , a l l have p a y r o l l
S av in g s P la n s .
KENTUCKY-----S. A lb e r t P h i l l i p s o f L o u i s v i l l e , Chairm an f o r
W estern K entucky; D avid F , Cocks o f L o u i s v i l l e ,
V ice C hairm an; W illiam F . M i l l e r o f L o u i s v i l l e ,
D ir e c t o r o f th e B anking and In v e s tm e n t D iv is io n ;
L i s l e B ak er, J r * , o f L o u i s v i l l e , D ir e c t o r o f
P u b l i c i t y ; J . S. B a te , J r* ,, o f L o u i s v i l l e ,
E x e c u tiv e M anager.
Ben W illia m so n , J r . , o f A sh lan d , Chairman f o r
E a s te r n K entucky; J o sh u a 3 . E v e r e t t o f M a y s v ilie ,
V ice C hairm an; Win. H. C o u rtn e y o f L e x in g to n ,
Chairm an 6 f th e E x e c u tiv e Com m ittee; A* A* H ines
o f A sh lan d ; E x e c u tiv e Manager*
As u n d e r th e fo rm er War S h v in g s program* th e War F in a n c e work
f o r t h e S ta t e w i l l be c a r r i e d on by two p a r a l l e l o r g a n iz a ti o n s , one
f o r W estern K entucky and th e o th e r f o r E a s te r n K en tu ck y .
Mr. P h i l l i p s i s V ice P r e s id e n t o f th e F i r s t N a tio n a l Bank o f
L o u i s v i l l e , and h a s , s in c e D ecem ber, 19^1, been S t a t e A d m in is tr a to r
f o r th e War S av in g s S t a f f . Mr* Cocks i s a g r a d u a te o f G e o rg ia Tech
and th e A t l a n t a Law S chool and i s S e c r e t a r y and T r e a s u r e r o f th e
S ta n d a rd O il Company o f K en tu ck y . Mr. M i l l e r i s V ice p r e s i d e n t o f
th e C it iz e n s U nion Bank o f L o u i s v i l l e , and p r e s i d e n t o f th e K entucky
B an k ers A s s o c ia tio n * He h a s s e rv e d a s b a n k in g r e p r e s e n t a t i v e on th e
War S a v in g s Com m ittee s in c e J a n u a ry , 19^2* Mr. B aker i s a g r a d u a te of
C e n te r C o lle g e and i s V ice P r e s id e n t o f th e L o u i s v i l l e C o u r ie r- J o u r n a l*
Mr* B a te h a s been D eputy S t a t e A d m in is tr a to r o f th e War S av in g s S t a f f
s in c e December, 1 9 U l.
Mr. W illia m so n , th e War F in a n c e C hairm an f o r E a s te r n K entucky,
h a s s e rv e d th e T re a s u ry D ep artm en t a s E a s te r n K entucky War S av in g s
Chairm an s in c e Decem ber, 1 9 ^1. Mr. E v e r e t t , fo rm e r V ice p r e s id e n t o f
th e B ankers T r u s t Company o f New York, h a s b u s in e s s i n t e r e s t s in
Mason C ounty, K entucky, and i s a d i r e c t o r i n s e v e r a l in s u r a n c e c o n c e rn s .
Mr. C o u rtn ey , a n a t i v e o f Wausau, W isco n sin , i s P r e s id e n t o f th e F i r s t
N a tio n a l Bank and T r u s t Company o f L e x in g to n . Mr, H ines h a s been
s e r v in g a s D eputy S ta t e A d m in is tr a to r o f th e War S av in g s S t a f f ,
K e n tu c k ia n s have in v e s t e d $ 1 8 7 ,0 0 8 ,5 6 8 i n War Bonds s in c e May 1,
19^1. The S t a t e ’ s r e c o r d i n th e p a y r o l l S a v in g s p la n shows t h a t o f
3^2 f irm s em ploying 100 o r more p e rs o n s , 3^5 a r e p a r t i c i p a t i n g in th e
program .
MINNESOTA-—-Oswald J , A rn o ld o f M in n e a p o lis , S ta t e C hairm an;
H aro ld E. Wood o f S t , P a u l, E x e c u tiv e V ice
C hairm an; L e i f G d ls ta d o f M in n e a p o lis , E x e c u tiv e
M anager.
Mr* A rn o ld , p r e s i d e n t o f th e N o rth w e s te rn N a tio n a l In s u ra n c e
Company, h a s been ch airm an o f th e S t a t e War S av in g s Com m ittee s in c e
J u n e , I 9UI*
- bMr, Wood, who was h o rn in Jam estow n, W orth D ak o ta, i s a g r a d u a te o f
th e U n iv e r s it y o f M in n e so ta , -and i s p r e s i d e n t and D ir e c t o r o f th e
H aro ld E* Wood, Company o f S t. P a u l. Mr. G ils ta d h a s b een D eputy Ad
m i n i s t r a t o r o f th e S ta t e War S av in g s S t a f f s in c e Ju n e , 19*41,
A rth u r D, R ey n o ld s, who h a s been S t a t e A d m in is tr a to r f o r th e
M in n e so ta War S av in g s S t a f f , i s r e t i r i n g to d e v o te a l l o f h i s tim e
to h i s in c r e a s e d d u t i e s a s C o ll e c t o r o f I n t e r n a l R evenue,
S in c e May 1, 19*41, War Bond s a l e s in M in n e so ta hav e a g g re g a te d
$ 367 *609 ,8*48, Of M in n e s o ta 1s 5*4*4 f ir m s , 539 firm s now have p a y r o l l
S av in g s p la n s i n o p e r a t io n .
D urin g th e Second War Loan D riv e , M in n e so ta sp o n so re d a l a r g e
number o f f i g h t i n g c r a f t f o r th e Wavy, in c lu d in g e i g h t a i r c r a f t re s c u e
b o a ts , f o u r am p h ib ian t r a c t o r s , s i x h a rb o r p ic k e t b o a ts , two buoy b o a ts ,
two su b m arin e c h a s e r s , f i v e la n d in g b a r g e s , th r e e ta n k l i g h t e r s , a m otor
to rp e d o b o a t and a p la n e re a rm in g b o a t, The S t a t e a l s o p ro v id e d fu n d s
e q u iv a le n t to th e c o s t o f a h eav y bomber, a medium bomber and two p u r s u i t
s h ip s f o r th e Army.
MISSOURI— -W a lte r W. Head o f S t. L o u is, S t a t e Chairm an;
Dan M* Wee o f K ansas C ity , V ice Chairm an;
E a r l H» S h a c k e lfo rd o f J e f f e r s o n C ity , E x e c u tiv e
M anager,
Mr, Head, a n a t i v e o f I l l i n o i s , i s p r e s i d e n t o f th e G e n e ra l A m erican
L i f e In s u r a n c e Company o f S t. L o u is , and a l s o i s p r e s i d e n t o f th e W a tio n a l
C o u n c il, Boy S c o u ts o f A m erica, Prom 1903 to 1933 he was engaged i n v a r i
ous c a p a c i t i e s in th e b an k in g b u s in e s s . Mr, Wee i s C o ll e c t o r o f I n t e r n a l
Revenue a t K ansas C ity and f o r m e r ly s e rv e d a s S t a t e A d m in is tr a to r on th e
M is s o u ri War S av in g s S t a f f . Mr. S h a c k e lfo rd h a s been D eputy S ta te Ad
m i n i s t r a t o r s in c e A p r il, 19*41.
p u rc h a s e s o f War Bonds by th e p eo p le o f M is s o u ri have a g g re g a te d
$*453,203,19*4 s in c e May 1, 19*41, The p a y r o l l S av in g s p la n h a s been w e ll
r e c e iv e d in M is s o u ri, w ith 9*+3 o f th e s t a t e ' s 1 ,0 3 6 f ir m s h a v in g 100 o r
more em ployees p a r t i c i p a t i n g in th e p rogram .
M is s o u ri r e c e n t l y r a i s e d fu n d s th ro u g h s p e c i a l bond cam paigns to
e q u a l th e p u rc h a s e p r i c e o f 33 p u r s u i t s h ip s a t $ 75,000 each and 27 bombers*
some a t $ 175,000 and th e o th e r s a t $ 300,000 e a c h ,
MOWTAWA——A* T* H ib b ard o f H elen a, S t a t e Chairm an;
W illiam H* B a r t le y o f G reat P a l l s , E x e c u tiv e
D ire c to r.
- 5 ~
Mr* Hibbard, P resid en t of the Union Bank and Trust Company of
Helena, has been Chairman of th e S ta te War Savings Committee sin ce
November, 19*41. Mr. B a rtley has served as S ta te A dm inistrator for
the War Savings S t a ff sin ce A p r il, 19U1 ,
Montanans have bought $72,579>6l5 worth of War Bonds sin ce May 1,
19^1* Of the S t a t e 's 53 firm s employing more than 100 persons, a l l
have p a y r o ll Savings p la n s.
S e ttin g an example fo r i n i t i a t i v e , Montana carried out a State-w ide
campaign to have a fig h tin g plane named fo r every county in th e S ta te ,
plu s a few extra;* One plane was purchased fo r each o f the. 57 co u n ties,
and in ad d itio n two bombers were bought to be named fo r th e S tate and
two oth ers to be named for o r g a n iz a tio n s. The bonds s a le s in volved
reached $9 *575»000«
(Note; A ll t o t a ls given above for War Bond purchases by S ta tes
are fo r the period from May 1, 19^1, when the S e r ie s E, p and G- War
Savings Bonds were inaugurated, through May 31* 19^3*)
-0O0
wmm
m m m m
m j u K
f, JH.
mm*
3 I * f S i J OF T!
The Invasion of Sicily and ether news developments fro® battle fronts
during tho past twenty-four houre^ Hats provided a elog«n ©*►our Third War
Loan Drive.
It is?
“Back the attack — with War Bon&e.*
As jmyone knows who has read a newspaper or listened to news bulletins
on the radio this morning, the United Eat lone are on the march* The first
rumblings of the big offensive are being heard in a ll the Axis nations*
Thousands of our men are storming S icily .
Tons upon tons of bombs are
C / f t rtf/
dropping on Germany. We are gMeriting
before.
thd7 Jap-held territory as never
This i s a great day fo r us. But it means that the time has cone
for us to really tighten our belts here on the home front* We have corns
v most
t- ■
to aAdrucial period in the war, and the ^ssmms
success that we will have
to which we here at home are willing to work and sacrifice and sweat for
____
on the fighting frontsu w ill depend to a considerable extent upon the degree
ultimate victory*
I t's going to be a costly victory* We have said that before, but we
\ fjw re a l war has pai r *o» b*«u>. /
must repeat it again and again .A B i l l ionsof dollars more must be spent to
keep the material of war going to our
men
atthe fronts.
Your Government
must call upon you, the American people, for that money*
Remember, i t is up to a ll of us here at home to Back the Attack — and
to do i t more enthusiastically, more thoroughly and with greater sacrifice
then any attack has ever been backed by any home front in a ll history*
Everything is at stake*
I p :11S 111
/.■;’:v' -
'
i
Everyone must help to t h ^ & i t of hit ability.
;; : n p 'p i s s i i
P!
r.
--
.
F or Sunday am*s
The f o l l o w i n g s t a t e m e n t was made today by
S e c r e t a r y Morgenthau:
- 2~
hults hera on the home front.
Vo have non# to n most crucial
period in the war, and the su ccess that wo w ill have on the
fighting fronte, w ill depend to a considerable extent upon the
degree to which wo hero at hone are w illing to work and eacrlfloe
for ultimate victory.
»!t*s going to ho a costly victory.
hut wo n u t repeat i t again and again,
Vo have oaid that hofore,
The real war has only now
begun. B illions of dollars noro Must he spent to keep the Material
of war going to our non at the fronts.
Tour deveramout west call
upon you, the American people, for that money*
*Remember, i t is up to a ll of us here at home to Back the
Attack •
to do It more enthusiastically, mere thoroughly and
with groator sacrifice than any attack has ever been backed by any
hone front in a ll history*
Brerythlng is at stake.
help to the very U n it of his ability**
Bveryone must
B XLSA SS
BO.
BOB RELSASE, OTDAT WORKING nTSPfl
inlj ID, 1943
WASHIISfOB. B. 0. ~ Secretary Morgenthau said today that the
invasion of S icily hy American and other a llied troop* ha* provided
a slogan for the fhird War Lean ©rive, which start* September 9.
fha slogan le:
*Baek the attack — with War load***
Xa hi® stateaeat today* Secretary Morgenthau *aids
•fhe invasion of S icily aad other new* development* from
battle front* daring the past twenty-fonr hoars* have provided a
slogan for oar fhird War loan Brlve.
It ftst
’Back the attack —
with War Bonds. *
•As anyone knows who has read a newspaper or listened to news
bulletins on the radio this morning* the United Batioas are on the
mareh. fhe fir s t rambling* of the big effensive are being heard in
a ll the Axis nations,
fhonsands of ear men are storming S icily,
fens open tons of bombs or# dropping on Germany.
Jap-held territory as never before,
Wo arc attacking
this i s a groat day for ms.
Bat i t moan* that the tin# has come for ms to really tighten oar
ton© h©r© on ftto hoa« f r o n t .
to tow© e©»© l« a »©©ft ©racial
©orlod in ftto w©r, ©ad ftto ©no©©*© fttoft w« w ill tow© ©a *to
f lu t in g fraaft«» w ill d©n©*d ft* a «©a«id©r©kl© t * l « l *©©* *&•
d#gr©© to which wo h«rt aft ho»e »r© w illing ft© work ©ad ©©orifi©©
for alftiaat© wis t o r y .
•Ift1© going ft© to a eooftly wieft©ry* to tow© ©aid fttoft tofor©,
toft w© on©ft r«#©*ft ift ©goto aad again# fto r©»l war to© only now
toga©# till!©©© of dollar© *©r« «n»ft to ©©©aft ft© to©© ftto *©ft©ri©l
of war going ft© ©or sum ©ft ftto fronft©# Toar &ow«nm«aft «*«ft oall
A|$B yon* ftto tooriooa p©opl©# for fttoft wfiftf*
"jtoBeator, ift 1© to I© ©H ©* a© tor© ©ft ton© ft© Bank ftto
dftftook • and fto do ift ©or© ©afttooiooftiooiijr# *©r« fthoroagfcly and
with gr©ator ©acrific© than toy ©ftftaok to© «w©r toon tootod hy ©ay
how© fronft la ©11 hiaftory#
to©ryfthiag 1© ©ft oft*to.
tolr fto ftto w«ry Hnift ©f M® ©MUfty.11
®r©ryon© ©uaft
m t m m m.
wm mmsi, m m t mmm
July 10, 1943
W48HJW6T0I, B* §• - S§«r«lt^ Bergenthen said today that th©
in v a s io n
of Sicily by M e n i»4 ether a llied I m f * ho* presldd
* elegaa for the third War Loan Drive, which *l«rl« September 9.
the slogan lot
*laefc th# attack — w ith War load*.*
la his statement today, Secretary Worgoathau said*
invasion of Sicily
fronts lu rin g the pest
*fhe
battle
and ether mow* developnents from
twenty-fonr hours, have provided *
slogan for car Third ««r Boon Drive.
It 1st
’Beck the attack
with War Bonds.*
•As anyone know* who has road a newspaper or listened to new*
bulletins on the radio this morning, the Waited fattens are on ths
march* The fir s t rambling* c f the Mg offensive are being heard la
a ll the trie nations*
fheasands of ear asm ars storming Sicily*
Tons upon tens of bombs or# dropping on Germany. We are attaching
Jan-held territory ee newer before.
This le c greet day for ns*
Bat i t mean* that th# tins ha* come for ns to r e d ly tighten ear
"belts here on the home front*
We here come to a most crucial
period la the war, aad the success that we w ill have oa the
fighting front8* w ill depend to a considerable extent upon the
degree to which we here at hone cure w illing to work and sacrifice
for ultimate victory*
"It’s going to be a costly victory*
We have said that before,
but we must repeat It again aad again* The real war has only now
begun* B illions of dollars acre must be spent to keep the materiel
of war going to our men at the fronts* Tour (fovenment must call
upon you, the American people, for that money*
"Bemember, i t is up to a ll of us here at home to Back the
Attack - and to do i t more enthusiastically, mere thoroughly and
with greater sacrifice than any attack has ever been backed by any
home front In a ll history*
Brerything i s at stake*
help to the very lim it of his ab ility*0
Ireryone must
SPECIAL—RUSH
Approved
Defense Savings Staff
Newspaper release
'M
...........
______
E u g e n e ,w / S l o a n
Attached
FERDINAND KUHN, JR .
_________ _______ - ......... Tim e-------------------- Date.
Harold N. G raves
For release to:
RELEASE BO.
TOR RELEASE, SUNDAY MORNINGNEtfSPjtf
July 10, 1943
WASHINGTON, D. C. - Secretary Morgenthau said today that the
invasion of S icily by American and other a llied troops has provided
a slogan for the Third War Loan Drive, which starts September 9.
The slogan is:
"Back the attack
with War Bonds, ■
In his statement today. Secretary Morgenthau said:
■The invasion of S icily and other news developments from
battle fronts during the past twenty-four hours, have provided a
slogan for our Third War Loan Drive,
It is:
’Back the attack —
with War Bends, *
"As anyone knows who has read a newspaper or listened to news
bulletins on the radio this morning, the United Nations are on the
march. The fir s t rumblings of the big offensive are being heard in
a ll the Axis nations.
Thousands of our men are storming Sicily,
Tons upon tons of bombs are dropping on Germany, We are attacking
Jap-held territory as never before.
This is a great day for us.
But i t means that the time has eome for us to really tighten our
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Sunday, J u l y 11, 19^3.
7 -1 0 -4 3
P r e s s S e r v ic e
No. 77~h7
~
The f o l l o w i n g s ta t e m e n t was made today by S e c r e t a r y Morgenthau;
The i n v a s i o n o f S i c i l y and o t h e r news developments
from b a t t l e f r o n t s d u r in g t h e p a s t twenty-four- hours have
p r o v id e d a slo g a n f o r our T h i r d War Loan D rive.
I t is;
‘'Back t h e a t t a c k — w ith War Bonds."
As anyone knows who has r e a d a newspaper or l i s t e n e d
t o news b u l l e t i n s on th e r a d i o t h i s morning, th e U n ite d
N ations a r e on th e march,
The f i r s t rumblings pf the b ig
o f f e n s i v e a r e b e i n g h ea rd in a l l th e Axis n a t i o n s .
sands of ou r men a r e storm ing S i c i l y .
bombs a r e dropping on Germany,
h e l d t e r r i t o r y as n ev e r b e f o r e .
us.
Thou
Tons upon to n s of
We a r e a t t a c k i n g J a p T h is i s a g r e a t day f o r
But i t means t h a t th e time has come f o r us to r e a l l y
t i g h t e n our b e l t s h e r e on t h e home f r o n t ,
We have come t o
a most c r u c i a l p e r i o d in th e war, and th e su c c e s s t h a t we
w i l l have on th e f i g h t i n g f r o n t s w i l l depend to a c o n s i d
e r a b l e e x t e n t upon th e degree t o which we h e r e a t home
a r e w i l l i n g to work and s a c r i f i c e and sweat f o r ultim ate,
victory.
I t ' s going to be a c o s t l y v i c t o r y . We have s a i d t h a t
b e f o r e , b u t we must r e p e a t i t a g a in and a g a i n . The r e a l
war h as only now begun. B i l l i o n s of d o l l a r s more must be
s p e n t to keep t h e m a t e r i a l o f war going t p our men a t th e
f r o n t s , Your Government must c a l l upon you, the American
p e o p l e , f o r t h a t money.
Remember, i t i s up to a l l of us h e r e a t home to Back
th e A t t a c k — and to do i t more e n t h u s i a s t i c a l l y , more
t h o r o u g h l y and w ith g r e a t e r s a c r i f i c e th a n any a t t a c k has
e v e r been backed by any home f r o n t i n a l l h i s t o r y . Every
t h i n g i s a t s t a k e . Everyone must h e l p to t h e very l i m i t
of h is a b i l i t y .
- 0O0-
TREASURY DEPARTMENT
Washington
Press Service1
POE IMMEDIATE RELEASE,
Monday, <fely 12. 19A3>
3 7 'M
Secretary* of the Treasury Morgsnthau today announced the f in a l subscrip
tion
allotment figures with respect to the current offering of 1—
1/2 per
cent Treasury Motes of Series A—
1947*
Subscriptions and allotments were divided among the several Federal Re
serve D istricts and the Treasury as follows i
Federal Reserve
District______
Total Subscriptions Received
Total Subscriptions Allotted
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
| 1,022,210,000
7,301,921,000
1,160,805,000
1,040,092,000
905,249,500
1,139,315,500
2,728,261,000
586,158,000
422,874,500
670,095,500
700,083,500
1,866,178,000
300.000
i
$19,543,543,500
$2,707,264,000
Nr a
TOTAL
133,453,000
696,267,500
135,409,000
181,616,000
173,076,500
378,140,500
366,196,000
143,634,000
86,000,500
115,537,500
114,048,500
183,585,000
300,000
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Monday, J u l y IS, 1941,
P r e s s S e r v ic e
No. 37-42
S e c r e t a r y o f th e T re a s u r y Morgenthau today announced
t h e f i n a l s u b s c r i p t i o n and a l l o t m e n t f i g u r e s w ith r e s p e c t
to t h e c u r r e n t o f f e r i n g of 1 -1 /2 p e r c e n t T re a su r y Notes of
S e r i e s A-19^7*
S u b s c r i p t i o n s and a l l o t m e n t s were d i v i d e d among th e
s e v e r a l F e d e r a l Reserve D i s t r i c t s and th e T re a s u r y as
follow s;
F e d e r a l Reserve
D istrict
Total Subscript
t i o n s Received
T o t a l S u b s c r ip tio n s A llotted
Boston
New York
Philadelphia
C leveland
Richmond
A tlanta
Chicago
S t , Louis
M inneapolis
Kansas C ity
P allas
San F r a n c is c o
T re a su r y
$ 1 ,0 2 2 ,2 1 0 ,0 0 0
7 , 301, 921,000
1 , 160, 805,000
1,04-0,092,000
905,249,500
1.139,3X 5,500
2 , 722, 261,000
526, 152,000
422, 874,500
670, 095,500
700, 023,500
1 , 866, 178,000
• 300,000
$
1 19 , 543, 543,500
12 , 707, 264,000
TOTAL
135,^53*000
696, 267,500
13 5 , 409,000
18 1, 616,000
173 , 076,500
378,140,500
366, 196,000
143, 634,000
86, 000,500
1 1 5 , 537,500
ii4,o48,500
183, 525,000
3.00,000
Bear Admiral Carter reported there were 129,000 0. S. tailors
who were haying at least one War Bond per month, and 148,000 sen who
were haying a bond every three nonthe.
In addition, there are 35,000 active Bond haying accounts in
the Marine Corps and 35,000 in the Coast Guard.
1ELIASE 10.
TOE IMMEDIATE BJL1AS1
July 10, 1943
WASHINGTON, D. C. • American tailors, once renowned as the
•spendin*est salts on the seven tea s,4 hare foresworn their carefree
ways and now are liste d among the th r iftie st of United States War Bond
v s j.S
' r * vw ( i r -
buyers, It is Indicated from a report of Bear Admiral •Ur"#. Oarle t, v
Assistant to the Taymster General of the levy, made today to Treasury
Secretary Henry Morgenthan, Jr.
In three nonths the officers and enlisted nen of Uncle Sam’s
fle e ts hare increased their total of War Bond buyers hy store than 500
per cent.
On March 31, just before the Second War Loan Campaign, Navyuni formed personnel numbered 50,000 regular purchasers of War Bonds.
By Memorial Day the number had increased to 80,000 and on June 30 had
increased again to 107,000$ but the most spectacular increase was
noted between June 30 and July 7 when the figure jumped to 277,000.
The dollar value of the allotments in now approximately
$6,900,000 per month, or an average of about $25 for each Bond
purchaser.
•3 »
Bear Admiral
reported there were 129,000 U* S* sailors
who were haying at least one War Bond
ckJ
■oath, and 148,000 men who
were haying a homd every three nonthe*
In addition, there are 35,000 active Bond haying accoants in
the Marine Corps and 25,000 in the Coast Qaard.
>0-
SPECIAL—RUSH
Date.
Defense Savings Staff
Newspaper release
A tta ch e d ..........................
Time
Date.
Ted H8 Gamble
For release to:
5 7 - ^ ?
relea.se no*
FOB IMMBBBiBE RELEASE
July 10, 1943
- American sailors, once renowned as the \ r t s i
"spendin*est salts on the seven seas," have foresworn their carefree \
ways and now are liste d among the th r iftie st of United States War Bond
. 3.
V o U
(V -
Buyers, i t is indicated from a report of Bear Admiral W-; J, Cart or r . '
Asufi stent--to the Paymaster General of the Navy, made today to TnKaBgy
Secretary IT—nr Morgenthau^Jn, ,
In three months the officers and enlisted men of Uncle Sam*8
fle e ts hare increased their total of War Bond Buyers By more than 500
per cent*
On March 31, just Before the Second War Loan Campaign, Navy
uniformed personnel numbered 50,000 regular purchasers of War Bonds*
By Memorial Bay the number had increased to 80,000 and on June 30 bed
increased again to 107,000; But the most spectacular Increase was
noted Between June 30 and July 7 when the figure jumped to 277,000*
The dollar value of the allotments i s now approximately
$6,900,000
purchaser*
O _✓
month, or an average of about $25 for each Bond
TOj
_______ .__Rz^..3arJuRli__ _
W ill you check th is with the
Navy and i f OK return to me.
Fred Smith
F re d S m ith
Hoorn 290fc
'
TREASURY DEPARTMENT
COMMISSIONER OF ACCOUNTS
To
3a KF
c7 ^ -° s—
U a J ^ Z
C
^ — '.
a -CC l^
H
Q \A _ ^
JL~^
O
n
Date 1
1* f e , :
MR. BARTELT
I
TO:
__Mr
SchwaS? s ......
See n o te on o r i g i n a l about
day o f r e l e a s e .
W ill you p le a s e
s e e t h a t Mr. B a r t e I t r e c e iv e s a
copy o f t h e r e l e a s e when i t comes out?
F re d Sm ith
Room £ 9 0 t
TREASURY' DEPARTMENT
Washington
FOR RELEASE, AFTERNOON NEWSPAPERS,
Tuesday, J u l y 13, 19^ 3,
P r e s s S e r v ic e
No. 3 7 ^ 9
American s a i l o r s , once renowned as th e “ s p e n d i n ’e s t
s a l t s on th e seven s e a s , ” have foresw orn t h e i r c a r e f r e e
ways and now a r e l i s t e d among th e t h r i f t i e s t of U n ite d
S t a t e s War Bond b u y e r s , I t I s i n d i c a t e d from a r e p o r t of
Rear Admiral W. B. Young, Paymaster' G eneral of t h e Navy,
made today to S e c r e t a r y Morgenthau,
I n t h r e e months t h e o f f i c e r s and e n l i s t e d men of Uncle
Sam’ s f l e e t s have i n c r e a s e d t h e i r t o t a l of War Bond b uyers
by more th a n 500 p e r c e n t .
On March J l , j u s t ' b e f o r e t h e Second War Loan campaign,
Navy uniform ed p e r s o n n e l numbered 50,000 r e g u l a r p u r c h a s e r s
o f War Bonds. By Memorial Day th e number had i n c r e a s e d to
5 0 . 000 and on June 30 had i n c r e a s e d a g a in to 107,000; but
t h e most s p e c t a c u l a r i n c r e a s e was noted between June 30 and
J u l y 7 when t h e f i g u r e jumped to 277»000^
The d o l l a r v a l u e of t h e a l l o t m e n t s I s now a p p r o x im a te ly
1 6 .9 0 0 .0 0 0 a month, o r an average of about $25 f o r each
Bond p u r c h a s e r .
Rear Admiral Young r e p o r t e d t h e r e were 129,000 U, S,
s a i l o r s who were buying a t l e a s t one War Bond a month, and
1^8,000 men who were buying a Bond e v e ry t h r e e months.
In a d d i t i o n , t h e r e a r e 35>00Q a c t i v e Bond buying a c
co u n ts i n the Marine Corps and 25,000 i n th e Coast Ouard.
oO o^
TREASURY DEPARTMENT
Washington
Press Service
FOR RELEASE, HORNING NEWSPAPERS,
Tuesday* July 13. I943»________
3 7 - S'
The Secretary of the Treasury announced la s t evening that the tenders for
$1,000,000,000, or thereabouts, of 92-day Treasury b i l l s to be dated July 14 and
to mature October 14,
1943, which were offered
on July 9, were opened a t the
Federal Reserve Banks on July 12*
The d e ta ils of th is issu e are as fo llo w si
Total applied for - $1,344,535,000
^
\
A „
« .
Total accepted
- 1,000,411,000 (includes $68,564,000 entered on a fixedprice b a sis a t 99*905 and accepted in full)
Range o f accepted bids:
H«~h
Low
Average price
(73percent o f
* 99.925 Equivalentrate of discountapprox.
- 99.904
•
* *
*
- 99.904/
■
*
"
*
the amount bid fo r
wasaccepted)
Total
Accepted
T otal
Apnlied fo r
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
D allas
San Francisco
TOTAL
at the low price
$
59,560,000
809,743,000
50,325,000
60, 365,000
34,455,000
56,425,000
U 6.457.000
34,920,000
7 , 105,000
23, 3^8,000
20, 480,000
71.312.Q0fi
$1,344,535,000
0.293$
per annus
°-376$ *
<>.374$ *
»
I
46,937,000
541,654,000
44.192.000
.
54 816.000
33.399.000
51.774.000
96.492.000
.
20 398.000
6,713,000
21 ,581,000
19.931.000
62.324.000
41,000,411,000
TREASURY DEPARTMENT
W ashington
•FOR RELEASE, MORNING NEWSPAPERS,
T u e s d a y , J u l y 15. 1943 .
7-12-43
'
7
P ress Service
No. 3 7 - 5 0
The S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n i n g t h a t
th e te n d e rs f o r #1,000,000,000,
or thereabouts,
of 92-day T re a s
u r y b i l l s t o be d a t e d J u l y 14 a n d t o m a t u r e O c t o b e r 14,
1943,
w h ic h w ere o f f e r e d on J u l y 9, w e r e o p e n ed a t t h e f e d e r a l R e s e r v e
Banks on J u l y 12.
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T otal' a p p li e d f o r - # 1 ,3 4 4 ,5 3 5 ,0 0 0
T o tal accepted ^
- 1 ,0 0 0 ,4 1 1 ,0 0 0 ( in c lu d e s #68,564,000
e n t e r e a on a f i x e d - p r i c e b a s i s a t 99*905 'and a c c e p t e d i n
fu ll) '
x
Range o f a c c e p t e d b i d s :
High
99.925 E q u i v a l e n t rat e of discount approx.
per a n n u m
0.293$
Low
- 99.904 E q u iv a le n t r a t e o f d i s c o u n t a p p ro x . 0.376$
p e r annum
Average
9 9 . 9 0 4 / E q u iv a le n t r a t e o f d is c o u n t ap p ro x . 0.374$
p rice
p e r annum
(73 p e r c e n t o f t h e amoun t b i d f o r a t t h e l o w . p r i c e was a c c e p t e d )
F ed eral R eserve
Bank
• ,_________
Boston
New York
Philadelphia
C leveland
Richmond
A tlanta
Chicago •
S t. Louis
■Minneapolis
Kansas C i t y
D allas
San F r a n c i s c o
TOTAL■
T o talv
A pplied f o r
$
59,560,000
809.743.000
50.325.000
60.365.000
34.455.000
5 6 . 4 2 5 .0 0 0
116.457.000
34.920.000
7,105,000
23, 3 8 8 , 0 0 0
20.480.000
71.312.000
#1', 3 4 4 , 5 3 5 , 0 0 0
- 0 O0 -
T otal
A ccepted
I
46,937,000
■541,854,000
44.192.000
54.816.000
33.399.000
51.774.000
96.492.000
2 0 , 3 9 8 ,0 0 0
6,713,000
2 1 5 8 1 .0 0 0
19.931.000
62.324.000
#1,000,411,000"
.
.2 .
He stressed the fa c t th at the law authorizes disposition
o f Hrea ln property by the Commisioner o f Public B u ildin gs, and that
app lication s pertaining to rea l property should therefor^be d irectly
addressed to that agency*
A pplications fo r personal property — su p p lies,
equipment and m aterials — should be made eith er d irect to the
Procurement D iv isio n , 7th & D S treets, S*W*, Washington, D*C*,
or to the nearest o f the follow in g Procurement D ivision Regional
o f f ic ia ls :
Boston, Mass — Donald A* Mackay
Park Square Building
New York C ity, New York — Fred S* Albrecht
76 Ninth Avenue
New York, New York
Washington, D*C* — John D* Fox
1229 - 20th S tr e e t, N.W.
C incinnati, Ohio — E*J. Dowd
235 West 12th S treet
Chicago, I llin o is — R*F# Going
222 West North Bank Drive
A tlanta, Georgia — John D* Tompkins
10 Forsyth S treet Building
Fort Worth, Texas — Ross N* Hanson
609 N eil P. Anderson Building
Kansas C ity, M issouri — Hamilton Morton
6th Fl* Porter Building
Denver, Colo* — Alden W. Pool
1630 Wazee S treet
San Francisco — Thos* C* Stephens
335 F e ll S treet
S e a ttle , Washington — Charles H* Peterson
Alaska Building
■ftliifl IIT
Mimliij/TiT11 i 1hi o f the-Twoftfliugylft .
(PH***'
Procuremen $ M M « a ^ ^ ^ d today that action on the d isp o sitio n
o f National Youth Adm inistration property recen tly declared surplus
by the Congress would begin immediately upon receip t from the N#Y#A#
o f an inventory o f personal property, supplies and equipment held
by th at agency#
id th at the amendment to the Second D eficiency
N.Y.A. property surplus, clearly
in d ica tes the p rio rity ranking under which such property w ill be
availab le to Federal, State and Municipal agen cies, and to the general
p u b lic.
He pointed out th at the law f ir s t provides: nThat,
under commitment to return such property to the United S tates a t
borrow ers expense, any rea l or personal property o f the National
Youth Adm inistration in use on June 30, 1943, by any non-Federal
vocation al education authority w ithin any State may continue to be
so used during the period o f the present war and fo r not to exceed
s ix months a fte r the term ination th ereo f, without compensation • . •
Mr. Mack said property not disposed o f under th is
clause w ill then be availab le to Federal agen cies, such as the War
and Navy Departments and the Maritime Commission#
ninety days o f P resid en tial approval o f the b i l l , fo r remaining property.
I f the Commissioner c e r tifie s that such property i s to be used for
vocational tra in in g , the Procurement D ivision w ill e ffe c t transfer
on a loan b a s is, without compensation#
wThe residue o f the property w ill then be available
fo r sa le to non-Federal public agencies and to the general p u b lic,”
Mr# Mack said#
Mr. Schwarz
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, J u l y 13, 19**3.
P r e s s S e r v ic e
No. 37-51
D i r e c t o r of Procurement C l i f t o n E. Mack s a i d today t h a t
a c t i o n on th e d i s p o s i t i o n of N a t i o n a l Youth A d m i n i s t r a t i o n p r o p e r t y
r e c e n t l y d e c l a r e d s u r p l u s by the Congress would b e g in immedi
a t e l y upon r e c e i p t from th e N.Y.A, of an i n v e n t o r y o f p e r s o n a l
p r o p e r t y , s u p p l i e s and equipment h e l d by t h a t agency.
He s a i d t h a t t h e amendment t o t h e Second D e f ic ie n c y Ap
p r o p r i a t i o n s Act, which d e c l a r e s N.Y.A. p r o p e r t y s u r p l u s ,
c l e a r l y I n d i c a t e s th e p r i o r i t y r a n k i n g u nder which such p r o p
e r t y w i l l be a v a i l a b l e to F e d e r a l , S t a t e and M unicipal a g e n c i e s ,
and to t h e g e n e r a l p u b l i c ,
He p o i n t e d out t h a t the law f i r s t provides?
’’T hat, u nder
commitment to r e t u r n such p r o p e r t y to t h e U n ite d S t a t e s a t b o r
r o w e r ’ s. expense, any r e a l o r p e r s o n a l p r o p e r t y of t h e N a t i o n a l
Youth A d m i n i s t r a t i o n in use on June JO, 19^3 > by any n o n - F e d e r a l
v o c a t i o n a l fedtication a u t h o r i t y w i t h i n any S t a t e may c o n t in u e to
be so u se d d u r in g th e p e r i o d of th e p r e s e n t war and f o r n o t to
exceed s i x months a f t e r th e t e r m i n a t i o n t h e r e o f , w ith o u t compen
sation , . , M
Mr, Mack s a i d p r o p e r t y not d is p o s e d of under t h i s c l a u s e
w i l l th e n be a v a i l a b l e to F e d e r a l a g e n c i e s , such as t h e War and
Navy Departments and th e Maritime Commission,
Follow ing t h a t , o t h e r n o n - F e d e r a l v o c a t i o n a l e d u c a ti o n
a u t h o r i t i e s may apply to th e U n ite d S t a t e s Commissioner of Edu
c a t i o n w i t h i n n i n e t y days of P r e s i d e n t i a l ap p ro v a l of t h e b i l l ,
f o r rem aining p r o p e r t y . I f th e Commissioner' c e r t i f i e s t h a t such
p r o p e r ty i s to be used f o r v o c a t i o n a l t r a i n i n g , t h e Procurement
D iv is io n w i l l e f f e c t t r a n s f e r on a lo a n b a s i s , w ith o u t compen
sation,
“The r e s i d u e of th e p r o p e r t y w i l l th e n be a v a i l a b l e f o r
sale to n o n - F e d e r a l . p u b l i c a g e n c ie s and t o the g e n e r a l p u b l i c , ”
Mr, Mack s a i d .
2
I
nf* H^ofi ®^r esse (^ t;he f a c t t h a t th e law a u t h o r i z e s d i s p o s i t i o n
?£ r e a l p r o p e r t y by t h e Commissioner of P u b lic B u i ld in g s and
bDee aad ii rr ee ca ttlw
r e a l Pr °Pe r t y should t h e r e f o r e
y a a» d^dn!
r e s sP°
e dJ t t?o^ nit S
h as *;t0
t agency.
and m a t p i ^ a 10" 3 J ° r p e r s o n a l p r o p e r t y — s u p p l i e s , equipment
D i v i s i o n ^ t h r r / S ° S l d bf maf e e i t h e r d i r e c t to t h e Procurement
n e a r e s t i f 7t h p a2 nT ?J? fne8| 3 ’ S,W” WashlnKt o n i D, O’, o r to t h e
n e a r e s t of the f o l l o w i n g Procurement D i v i s i o n R egional o f f i c i a l s
Boston, Mass, *—* Donald A. Mackay
Park Square B u i l d i n g
New York C i t y , New York; «
Fred S. A lb r e c h t
76 N inth Avenue
New York, New York
Washington, D.C. *+ John D, Fox
1229 - 20th S t r e e t , N,W,
C i n c i n n a t i , Ohio
E. J , Dowd
235 West 12th S t r e e t
Chicago, I l l i n o i s **»■» R. F. doing
222 West North Bank Drive
A t l a n t a , Georgia
John D* Tompkins
10 F o r s y t h S t r e e t B u ild in g
F o rt.W o rth , Texas *-*— Ross N» Hanson
609 N e il p f Anderson B u i ld in g
Kansas C i t y , M is s o u ri — Hamilton Morton
6t h F I , P o r t e r B u i ld in g
Denver, Colo, — Alden W. Pool
1630 Wazee S t r e e t
San F r a n c i s c o
Thos. C, Stephens
335 P e l l S t r e e t
S e a t t l e , Washington — C h a rle s H, P e t e r s o n
Alaska B u i l d i n g
-o O o t-
- 17 -
totalitarian antheap upon which the Fuehrer, the Duce and
Tojo have set their craven hearts*
To win this war, the people —■all the people —* will
have to put forth every ounce of energy they possess* War on
so unexampled a scale cannot be an enterprise of the few; it
must be an undertaking of the many. Only the people — all
the people — laying aside out of current income as much as
they possibly can, are capable of financing this total war.
Today as never before our dollars are called to the
service of their country. They must put off the civilian
dress of peace and put on the uniform of war. We can no more
tolerate idle dollars — we can no more tolerate spendthrift
dollars •• than we can tolerate idle men* We must be partners
rather than competitors of our Government in its fight for
life .
It is high time we say to our money as we have begun
to say to our men, “Work or Fight. n
-
16
*
vitally needed wap goods, too numerous to mention, to press
the attaok against the enemy. While our men and women of
the armed forces are pressing the attack, i t ’s our job over
here to back the attack
and that can only be done by
rallying to the support of the War Bond program and buying
bonds t i l l it hurts.
I t ’s the very least we can do. Our
sacrifices here, no matter how great, can never begin to
equal the sacrifices i i m g r m a k i n g day-in and day-out
for eachj^and every one of us.
It has been said time and again — and it cannot be
repeated too often — that this is a people’s war. If this
expression has meaning, it is simply that this war will
determine the future destiny of the common man — it will
determine whether he is to live out his three score and ten
in freedom, with opportunity to improve life for himself
and his loved ones, or whether he is to be a slave in that
- 15 fro n t.
It is a channel through which hundreds of thousands
of people, acting as volunteer workers, have developed, in
many cases for the f i r s t time, a high sense of community
re sp o n sib ility .
This co n stitu tes one of the country’s
p riceless assets — and in the months to come i t w ill be
more important than ever to conserve th is a ss e t, to establish
a friendly environment in which i t can grow and prosper#
The
dividends i t w ill pay w ill redound to our advantage not only
in these te rrib le wartime days, but in the years of peace
and plenty to come.
Let’s keep our eye on the b a ll.
*»<«
N 4S
S
Every day^The Goverimient
u 3 £ "
pouring^wSTmillion d o llars into the manufacture of
bombers to blacken the enemy sky and bombs to sear the enemy
earthy into fighting ships to clear the If* boats from the
seas and carry our m n and m ateriel safely to the far-flung
b a ttle -fro n ts of the world\ into hundreds of thousands of
I
- 14 fixed salary whose income has increased l i t t l e i f at a l l;
between individuals whose a b ility to invest in War Bonds
is affected by p rio r obligations, such as li f e insurance
and the repayment of mortgage debt, and individuals whose
a b ility is not affected by such contractual obligations;
between individuals who are members of fam ilies in which
some or a l l are working and earning incomes, and individuals
who are the sole breadwinners of th e ir fam ilies.
lending is oblivious & these d is tin c tio n s.
Compulsory
I t is tantamount
to sabotage^the war e ffo rt, therefore, to speak of com
pulsory lending as a su b stitu te for the job we have to do.
Let us not be sidetracked from the te rrib ly important
job that cries to be done by academically pointless disoussion
over compulsory versus voluntary lending.
nowhere.
I t w ill get us
The voluntary program has been one of the major
channels of p artic ip a tio n in the war e ffo rt on the home
- 13 canvasses a t every one of the nation’s o ffic e s.
There is
f
no other way.
And the job must be done!
Even the most starry-eyed must recognize that there can
be no system of compulsory lending th is year to take some of
the load off our hands; and when they analyze the Wwr^nature
of our problem they too w ill be forced to recognize that there
w ill never be a system of compulsory lending to take a l l of
the load o ff our hands.
C ertainly, there w ill always be need
fo r the voluntary savings program in terms of the job that
must be done.
Because fore extending operates lik e a tax,
the amount of forced levies th a t can be applied to any
income group is lim ited by the capacity to pay of those in
the group who are le a s t able, not most able, to pay.
The
voluntary program, and the voluntary program alone, is able
to d iffe re n tia te
between the war worker whose income hag
increased considerably In recent years and the workers on
-
12 -
War Bonds, there is s t i l l the question as to how the funds
are to be obtained.
This question has received increasing
a tte n tio n of la te in the n a tio n 's press.
People who think
in terms of simple alternatives, who possess what may be
described as an "e ith e r—-or" m entality, doubt th a t so huge
a sum as the Government must raise can be obtained from the
voluntary savings of the people, th a t they must be obtained,
from some system of forced or compulsory lending.
e no desire to en ter into th is controversy a t the
present time,
th a t is more, I see no good th a t may result
from such a controversy a t the present time.
to be done — a stupendous job to be done.
There is a job
And at th e present
moment there is only one way in which we can do i t .
That
is by going into the fie ld and conducting house-to-house
canvasses in every one of the n a tio n 's counties; benoh-to-benol
canvasses in every one of the n a tio n 's fa c to rie s ; desk-to-des
11
much too swollen stream of purchasing power.
Americans have th at kind of money in undreamed of
plenty.
And when I say Americans, I don’t mean the 2 per
cent of our income receivers who make five thousand
or more.
a
year
I mean the 98 per cent of our people who earn five
thousand a year or le ss .
I mean the 32 .millions employed by
business organizations; the 6 m illion on government payrolls —
Federal, S tate, and lo c al; the 4 million^self-employed, includ
ing professional people, domestics, and business men; the
10 m illion farmers whose income is greater than ever before.
I t is these Americans earning five thousand a year or less
who have seven-^ights)of current incomes a fte r taxes; and it
is these Americans, and only these Americans, who can provide
th e ir Government with the funds i t so desperately needs.
Having remarked that individuals earning less than five
thousand a year co n stitu te our most important market for
-
10
-
conventional standards of liv in g .
This would be a tragedy of
the f i r s t order. *
If we are to put an end to the th reat from w ithin while
our boys are putting an end to the th rea t from w ithout; i f we
are to back the attack as our boys are now pressing the attack,
then we on the home front have a big job to do in what remains
of th is year.
Just as we have sent our boys, so must we
now send our d o llars to war.
We must tran sfer excess incomes
now accumulating from private to public use.
We must draw back
into the Treasury out of the incomes created by our everexpanding national production an amount equal to what the
Government is spending.
The Government doesn’t need bank money.
doesn’t need p rin tin g press money.
people’s money.
The Government
The Government needs the
I t needs money that represents for the
most p art a tra n sfe r from, not an addition to , the already
n
- 9Much of present-day savings, Moreover, is purely automatic
and unintended, representing in no way a voluntary premeditated
act on the part of individuals*
These savings have been made
possible by price control, rationing, the shortage of durable
consumers* goods, and the excess of people’s actual income
over th e ir anticipated income, a l l of which have le f t many
individuals with more money than they know what to do with.
I t is precisely because these highly liq u id savings have
not originated from a voluntary desire to save regularly and
system atically, from a determination to set aside and keep
aside come what may^ a fixed proportion of one’s income week-in
and weejc-out, th at they co n stitu te so serious a source of
p o te n tial danger.
For when goods’ shortages become even more
acute than they are today, as inevitably they must, there is
a dangerous likelinood th at th is type of savings w ill be
f r itte r e d away in a reckless and f r u itle s s attempt to preserve
-
8
-
War production is not only turning out the planes, tanks
and ships that w ill crush the enemy*
I t is also generating
a t the very same moment incomes equal in amount to th at
production*
But while we are devoting more than h a lf our
working energies and productive equipment to making goods
for war — goods which in the very nature of the case cannot
be bought by individuals — we as individuals are receiving
ju st as much for producing a l l those goods as i f we could biqr
them a l l .
This is the economic paradox of a war economy,
and serves to explain why the savings of the American people
available for investment should exceed those for any period in
our history*
What we have lacked is not the savings, but the
to invast enough of these savings in government securities*
/
Much of the savings accumulating today is highly liquid in
character — in the form of currency and commercial bank deposW
- 7 in the neighborhood of 7*"»***b»'*«^illio
n d o llar# .
^
Another 7.....b illio
ns
.
fffl
has bean absorbed, in the purchase of government se c u ritie s
during the f i r s t h a lf of the year.
I f w@ do not improve on
th is performance during the second h a lf of the year — that is,
from now through December — we w ill be l e f t with something
lik e 24 b illio n s to co n stitu te an in flatio n ary th reat of the
f i r s t magnitude.
It is no cause for wonder therefore that the Treasury has
raised i t s sights considerably on War Bonds for the re st of
the year.
Totalfpurchases of 7 b illio n s in government
XSSv,^ _
^
securities by individuals during the firs t half of the year
were clearly not enough. During the second half we propose
to sell 18 billions — or more than twice as much.
There is no lack of savings available for investment in
War Bonds.
Production in general — and war production in
p a rtic u la r — is creating the very funds we are in search of#
I
I t would be arran t fo lly to think th is situ a tio n can
be controlled by adm inistrative measures alone*
Even with
the most e ffic ie n t adm inistration of price controls, rationing, c re d it control and wage s ta b iliz a tio n , the^apward pres
sure on prices w ill continue unless a large part of th is
45 b illio n s in excess income Is absorbed by additional taxes,
savings, or both*
In view of the unlikelihood of additional
taxes th is year, the need for ad d itio n al savings is so much
■pp
the greater*
We sh a ll have to conduct a campaign for th rift
and saving without precedent in th is country*
Every device
known to Poor Richard, and others Poor Richard never knew,
must be used*
We have made a beginning, an auspicious beginning — but
only a beginning.
Of the 45 b illio n s available for saving,
re lia b le estim ates place the to ta l th a t w ill be absorbed in
debt payments, li f e insurance premiums and savings deposits
-
6 •
the estimated value of a l l goods and services available for
private purchase in 1943 is
The difference
between th is 80 b illio n s in goods and services available for
• -Vi''
'• - mii Vilid. iinurnhi’
>
purchase and 125 b illio n s of disposable incomes available for
spending is 45 b illio n d o llars — and i t is th is 45 b illio n s
which measures the excess of demand over supply*
Whether we are to e ffe c t a reasonable measure of eco
nomic s ta b ility or whether we are to suffer a much more serious
in fla tio n depends in large p art on what the American people do
with th is excess of 45 billions*
savings — or for in fla tio n .
I t can be employed either for
I f i t is saved — as i t most
certain ly should be — then we w ill have mastered the demon of ■
inflation*
I f , on the other hand, i t is employed in large part
in a reckless attempt to buy goods th at don’
and) under
conditions, can’t e x is t, then i t is very lik e ly we are headed
for disaster*
jj
|
- 4 -
in larg er or smaller measure are aspects of the fundamental
problem of In fla tio n .
I f we are to win the b a ttle of the
home fro n t, th is Is the hydra-headed monster we must slay.
And i t Is toward the extermination of th is monster th at the
Treasury is bending a l l i t s energies
Let us try to fix in our minds the nature of the problem
th at c a lls for solution.
I ts basic elements are quite simple
illl:
and can be boiled down to the old fam iliar law of supply and
demirid.
Total income payments to the American people In 1943
w ill soar to an estimated 140 b illio n d o lla rs.
Total personal
taxes paid by individuals to Federal, State and Local
Governments w ill amount to some 15 b illio n d o lla rs, leaving
approximately 125 b illio n s of disposable income in the hands
of consumers.
This is the amount of money th a t the American
people w ill have available for th e ir use, and constitutes/
th erefore, the demand side of our equation.
On the supply sid#j
ft
- 3 In th is great experiment, you members of the National
Entertainment Industry Council have your task cut out for you.
I t is your task to bring to the American people in the
remaining months of the year the facts of the situ a tio n ,
and the magnitude of the job th at must be done.
I fm afraid
the story w ill contain l i t t l e of entertainm ent.
But I know
we a l l agree th at i t might be b e tte r to take our medicine now
and leave the entertainment for la te r , than the other way
around.
The problem of financing the war is part and parcel of
the problem of in fla tio n , and as such is probably the greatest,
and gravest, overall problem of the domestic economy today.
Other problems of which you have heard so much in recent
months — the attack on the L ittle S teel formula, the problem
of moving food to markets where shortages p rev ail, the problem
of the proper allo catio n of the nation*s manpower — a ll these
-
2
-
We a t the Treasury are peculiarly aware that th is
year — 1943 — may be the most fa te fu l year of the war
When we say th is we have in mind something other than the
great m ilitary events in Europe and Asia to which a l l of us
look forward with such high hopes and confidence.
We have
in mind the tru ly staggering adjustments folks on the home
front must he prepared to make to achieve the kind of
victory on which a l l of us have set our hearts — and our
fu tu re s .gf'This year w ill provide the te s t whether the
American people, suffering for the f i r s t time the fu ll
impact of to ta l war, can provide by democratic, voluntary
action the sums of money required to finance th is war in
the great outpouring th at is required.
I t is no exaggeration
to say th at the re su lts of th is experiment — for that is
exactly what i t is — w ill determine fo r years to come the
p attern of the America-to-be.
Names, unfortunately, often conceal as much as they
reveal.
That is certain ly true in the case of the
National Entertainment Industry Council.
If your national
organization were devoted today to entertainm ent, and en
tertainm ent alone, there would be l i t t l e cause for my
appearing before you to ta lk on the subject of America’s
Financial M obilization.
I t is precisely because the so-called
entertainment industries have gone to war, because you have
mobilized your personnel and equipment for the most serious
life-and-death b a ttle in which th is country has ever been
engaged, that I fe e l the t i t l e of your organization conceals
more than i t reveals.
As a person who has spent over 15 years
in the entertainment industry, I salute you — salute you for
the magnificent job you are doing in bringing to the American
people the true story of the war and for making them more aware
of the great issues involved.
TREANSURY DEPARTMENT
Washington
F6R RELEASE, AFTERNOON PAPERS
Wednesday, June 14, 1943
Press Service
No.
3
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TREASURY DEPARTMENT
W ashington
FOR RELEASE, AFTERNOON NEWSPAPERS
Wednesday,- J u l y 14, 1943
P r e s s S e r v ic e
No. 37-52
(T h e fo llo w in g a d d r e s s by Ted R , Gamble, N a ti o n a l D i r e c t o r o f t h e *
T r e a s u r y 's War F in a n c e D iv is io n ,, b e f o r e t h e N a tio n a l E n te r ta in m e n t
I n d u s t r y C o u n c il, i s s c h e d u le d f o r d e l i v e r y a t l i 30 p .m .. E a s te r n
t a r Time. J u ly 11. l f:’A3, i n .th e W a ld o rT -A sto ria H o te l. Meur York
C ity , and i s f o r r e l e a s e a t t h a t t i m e . )
AMERICA*S FINANCIAL MOBILIZATION:
THE PROBLEM AND ITS SETTING
Names, u n f o r t u n a t e l y , o f te n c o n c e a l a s much a s th e y re v e a l# T h a t i s
c e r t a i n l y t r u e i n t h e c a s e o f t h e N a tio n a l. E n te r ta in m e n t I n d u s tr y .C o u n cil.
I f y o u r n a t i o n a l o r g a n iz a ti o n w ere d e v o te d to d a y t o e n te r ta in m e n t, and en
te r t a in m e n t a lo n e , t h e r e would be l i t t l e c a u s e f o r m y .a p p e a rin g b e f o r e you
to t a l k on th e s u b j e c t o f A m eric a’ s F i n a n c i a l M o b ili z a t io n . I t i s p r e c i s e l y
b e c a u se t h e s o - c a l l e d e n te r ta in m e n t i n d u s t r i e s have gone t o w ar, b e c a u se you
have m o b iliz e d y o u r p e r s o n n e l and equipm ent f o r t h e m ost s e r io u s l i f e - a n d a e a t h b a t t l e I n w hich t h i s c o u n try h as e v e r been en g ag ed , t h a t I f e e l t h e ■
t i t l e ox y o u r o r g a n iz a ti o n c o n c e a ls more th a n i t r e v e a l s . As a p e rs o n who
has s p e n t o v e r 15 y e a r s i n t h e e n te r ta in m e n t i n d u s t r y , I s a l u t e you —
s a l u t e you l o r t h e m a g n if ic e n t jo b you a r e d o in g i n b r in g in g t o th e A m erican
p e o p le t h e t r u e s t o r y o f t h e w ar and f o r m aking them more aw are o f th e
g r e a t is s u e s in v o lv e d .
Jiife a t t h e T re a s u ry a r e p e c u l i a r l y aw are t h a t t h i s y e a r — 1943 — mav
be t h e m ost f a t e f u l y e a r o f t h e w ar. When we s a y t h i s we have in mind
som eth in g o th e r th a n t h e g r e a t m i l i t a r y e v e n ts i n Europe and A s ia t o w hich
, °5vU3a
. f or wa r d v/^t h su c h h ig h hopes and c o n f id e n c e . We have i n
mind t h e t r u l y s ta g g e r i n g a d ju s tm e n ts f o lk s on t h e home f r o n t m ust be
p re p a re d t o make to a c h ie v e th e k in d o f v i c t o r y on w hich a l l o f u s h av e s e t
our h e a r t s — and o u r f u t u r e s .
■
■r
P ro v id e th e t e s t w h e th e r t h e A m erican p e o p le , s u f f e r i n g
f l r s ^ "time th e f u l l im p a c t o f t o t a l w ar, can p r o v id e by d e m o c ra tic ,
o lu n t a iy a c t i o n th e sums o f money r e q u ir e d t o f in a n c e t h i s w ar in th e
g r e a t o u tp o u rin g t h a t i s re q u ire d * I t i s . n o e x a g g e r a tio n t o s a y t h a t th e
r e s u l t s ox t h i s e x p e rim e n t — f o r t h a t i s e x a c tly w hat i t i s — w i l l d e te rm in e
x o r y e a r s t o come t h e p a t t e r n o f th e A m e ric a -to -b e .
In t h i s g r e a t e x p e rim e n t, you members of th e N a tio n a l E n te r ta in m e n t
I n d u s tr y C o u n c il have y o u r t a s k c u t o u t f o r you* I t i s y o u r ta s k t o b r in g
t o t h e A m erican p e o p le i n th e re m a in in g m onths o f th e y e a r th e f a c t s of
t h e s i t u a t i o n , and th e m a g n itu d e o f t h e jo b t h a t m ust be d o n e . I ’m a f r a i d
th e s t o r y w i l l c o n ta in l i t t l e o r e n te rta in m e n t.^ B ut I know we a l l a g re e
t h a t i t m ig h t be b e t t e r t o t a k e o u r m e d ic in e now and le a v e th e e n te r ta in m e n t
f o r l a t e r , th a n t h e o th e r way a ro u n d .
. Ih e p rob lem o f f in a n c in g th e war i s p a r t and p a r c e l o f th e p ro b lem o f
i n i l a t i o n , and a s su ch i s p r o b a b ly th e g r e a t e s t , and g r a v e s t, o v c ra .il
p ro o lem o f th e d o m e stic economy today* O th e r p ro b lem s o f w hich you have
h e a rd s o m uch^in r e c e n t m onths — .th e a t t a c k on th e L i t t l e S t e e l fo rm u la ,
th e p ro b le m o f moving fo o d to m a rk e ts w here s h o r ta g e s p r e v a i l , t h e
p ro b lem o f th e p r o p e r a l l o c a t i o n o f th e n a t i o n ’ s manpower — a l l t h e s e in
la r g e r ^ o r s m a lle r m easu re a r e a s p e c ts o f t h e fu n d a m e n ta l p ro b lem o f
I n f l a t i o n . I f we a r e t o win t h e b a t t l e of th e home f r o n t , t h i s i s th e
h y d ra—headed m o n ste r we m ust sla y * * And i t i s to w ard t h e e x te r m in a tio n o f
t h i s m o n s te r t h a t th e T re a s u ry i s b en d in g a l l . i t s e n e rg ie s *
L et us t r y t o f i x i n our m inds th e n a t u r e o f t h e p ro b lem t h a t c a l l s f o r
s o lu tio n # I t s b a s ic e le m e n ts a r e q u i t e sim p le and can be b o i l e d down t o
t h e o ld f a m i l i a r la w o f s u p p ly and demand* T o t a l incom e paym ents to t h e
A m erican p e o p le in 1943 w i l l s o a r t o an e s tim a te d 140 b i l l i o n d o l l a r s . T o t a l
p e r s o n a l ta x e s p a id by i n d i v i d u a l s t o F e d e r a l, S t a t e and L o c a l G overnm ents
w i l l amount t o some 15 b i l l i o n d o l l a r s , le a v in g a p p ro x im a te ly 125 b i l l i o n s
o f d is p o s a b le incom e i n th e hands o f c o n s u m e r s .' This, i s th e amount o f
money t h a t th e A m erican p e o p le w i l l have a v a i l a b l e f o r t h e i r u s e , and
c o n s t i t u t e s , t h e r e i o r e , t h e demand s i d e of o u r e q u a tio n * On th e su p p ly s id e ,
t h e e s tim a te d v a lu e o f a l l goods and s e r v i c e s a v a i l a b l e f o r p r i v a t e p u rc h a s e
in 1943 i s a b o u t 80 b i l l i o n s . The d i f f e r e n c e b etw een t h i s SO b i l l i o n s in
goods and s e r v i c e s a v a i l a b l e f o r p u rc h a s e and 125 b i l l i o n s of d is p o s a b le
incom es a v a i l a b l e f o r sp e n d in g i s 45 b i l l i o n d o l l a r s — and i t i s t h i s 45
b i l l i o n s w hich m easu res th e e x c e ss o f demand o v e r s u p p ly .
W hether we a r e t o e f f e c t a r e a s o n a b le m easu re of econom ic s t a b i l i t y o r
w h eth er we a r e t o s u f f e r a much more s e r io u s i n f l a t i o n d ep en d s i n l a r g e
p a r t on T/\hat th e A m erican p e o p le do w ith t h i s e x c e s s of 45 b i l l i o n s .
It
can^be em ployed • c i t h e r f o r s a v in g s — o r f o r I n f l a t i o n . I f i t i s sav ed —
as i t m ost c e r t a i n l y s h o u ld be — th e n we w i l l have m a s te re d th e demon o f
in fla tio n *
l i , on th e o th e r h and, i t i s em ployed i n l a r g e p a r t i n a
r e c k l e s s a tte m p t t o buy goods t h a t d o n ’t and, u n d e r p r e s e n t c o n d i tio n s , c a n ’t
e x i s t , th e n i t i s v e ry l i k e l y we a r e headed f o r d i s a s t e r .
I t w o u ld .b e a r r a n t f o l l y t o t h i n k t h i s s i t u a t i o n can be c o n t r o l l e d by
a d m i n i s t r a t i v e m e asu re s alo n e* Even w ith t h e m ost e f f i c i e n t a d m in is tr a t io n
o f p r i c e c o n t r o l s , r a t i o n i n g , ’c r e d i t c o n t r o l and wage s t a b i l i z a t i o n , th e
3
upw ard p r e s s u r e °n p r i c e s w i l l c o n tin u e u n l e s s a l a r g e p a r t o f t h i s
ry . , 1
e x c e ss incom e i s absorbed, b y a d d i t i o n a l t a x e s , s a v in g s , o r
b o th .^ In v ie w o f th e u n li k e li h o o d o f a d d i t i o n a l ta x e s t h i s y e a r , t h e
need ±or a d d i t i o n a l s a v in g s i s s o much th e g r e a t e r . We s h a l l have t o co n d u ct
a cam paign x o r t h r i f t and s a v in g w ith o u t p r e c e d e n t i n t h i s c o u n try . E very
d e v ic e known t o P o o r R ic h a rd , and o th e r s P o o r R ic h a rd n e v e r knew, m ust be
used.
3
a b e? J rm in g # 311 a u s p ic io u s b e g in n in g — b u t o n ly a b e g in n in g ,
Oi th e 45 b i l l i o n s a v a i l a b l e f o r s a v in g , r e l i a b l e e s ti m a t e s p la c e t h e t o t a l
na w ill^ b e ^ a b s o rb e d i n d e b t p ay m en ts, l i f e in s u r a n c e prem ium s and s a v in g s
d e p o s it s in th e n e ig h b o rh o o d o f 7 b i l l i o n d o l l a r s . A n o th e r 7 b i l l i o n s h as
been a b s o ro e d i n t h e p u rc h a s e o f governm ent s e c u r i t i e s d u r in g t h e f i r s t h a l f
th e
s a r. I f we do n o t im prove on t h i s p e r f o m a n c e d u r in g t h e seco n d
n a n oi th e y e a r — t h a t i s , from now th r o u g h Decem ber — we w i l l be l e f t w ith
so m eth in g l i k e 24 b i l l i o n s t o c o n s t i t u t e an i n f l a t i o n a r y t h r e a t o f th e
f i r s t m a g n itu d e .
.
s^
h ° c a u s e f o r w onder t h e r e f o r e t h a t vth e T r e a s u r y h as r a i s e d i t s
„ c1o n s id e r a b ly on War Bonds f o r t h e r e s t o f t h e y e a r . T o t a l p u rc h a s e s
1 b i l l i o n s i n governm ent s e c u r i t i e s by i n d i v i d u a l s d u r in g th e f i r s t
h a l f _oi t h e y e a r w ere c l e a r l y . n o t en o u g h . D u rin g t h e seco n d h a l f we p ro p o s e
t-o s e n i o b i l l i o n s — o r more th a n tw ic e as much.
,
310 '*'a c ^c °~ s a v in g s a v a i l a b l e f o r in v e s tm e n t i n War B onds,
P r o d u c tio n i n g e n e r a l — and w ar p ro d u c tio n i n p a r t i c u l a r — i s c r e a t i n g
th e v e iy fu n d s we a r e i n s e a r c h o f ,
+w
nP r °dUSt f u n iS n o t 0nly tu r n i n g o u t t h e p la n e s , ta n k s and s h ip s
t h a t m i l c r u s h th e enemy. I t i s a l s o g e n e r a tin g a t t h e v e r y same moment
incom es e q u a l m amount t o t h a t p r o d u c tio n . B ut w h ile we a re , d e v o tin g more
ta a n h a l f o u r w o rk in g e n e r g ie s and p r o d u c tiv e eq u ip m en t to m aking goods
i o r w ar
goods w hich i n t h e v e ry n a t u r e o f th e c a s e c an n o t be b o u g h t b y
■"7 w® a ? in d i v i( * u a ls a r e r e c e i v i n g - j u s t as much f o r p ro d u c in g
a.
Oow goo s a s i f we c o u ld buy them a l l . T h is i s th e econom ic p a ra d o x
ox a war economy, and s e r v e s t o e x p la in why th e s a v in g s o f th e A m erican
p eo p le a v a i l a b l e f o r in v e s tm e n t sh o u ld ex ceed th o s e f o r any p e r io d i n o u r
.fliSu o iy o
What we have la c k e d i s n o t t h e s a v in g s , b u t tire d i s p o s i t i o n t o i n v e s t
■enough o f ^ th e s e s a v in g s i n governm ent s e c u r i t i e s . Much o f th e s a v in g s
a '&lnS to d a y i s -highly l i q u i d i n c h a r a c t e r — in- t h e form o f c u rre n c y
om m ercial^bank d e p o s i t s . ■ Much o f p r e s e n t- d a y s a v in g s , m o reo v er, i s
p u r e ly a u to m a tic and u n in te n d e d , r e p r e s e n t i n g i n no way a v o lu n ta r y
p re m e d ita te d a c t on t h e p a r t o f i n d i v i d u a l s . . T hese s a v in g s have been made
p o s s i o le by p r i c e c o n t r o l , r a t i o n i n g , th e s h o r ta g e o f d u r a b le co n su m ers’
goo o, and th e e x c e ss o f p e o p le ’ s a c t u a l incom e o v e r t h e i r a n t ic ip a te d ,
incom e, a l l o f w hich have l e f t many i n d i v i d u a l s w ith m ore money th a n th e y
know what, t o do w ith .
4
I t i s p r e c is e ly because th e s e h ig h ly l i q u i d sav in g s have n o t
o r ig in a te d -‘from -a v o lu n ta ry d e s ir e to s'ave r e g u l a r l y and s y s te m a tic a lly ,
from a d e te rm in a tio n to s e t a s id e and keep a s id e come what may, a fix e d
p ro p o rtio n of one’s income v/eek—in and week—o u t, t h a t th e y c o n s ti tu te so
s e rio u s a source of p o t e n t i a l d a n g e r. For when goods’ s h o rta g e s become
even more a c u te th a n th e y a re to d a y , a s in e v i t a b l y th e y m u st, th e re i s
a dangerous lik e lih o o d t h a t t h i s ty p e o f sa v in g s w i l l be f r i t t e r e d away in a r e c k le s s and f r u i t l e s s a tte m p t to p re s e rv e c o n v e n tio n a l s ta n d a rd s of
l i v i n g . This would be a tra g e d y of th e f i r s t o r d e r .
I f we a re to p u t an end to th e t h r e a t from w ith in w h ile our. boys
a re p u ttin g an end to th e t h r e a t from w ith o u t3 if 'w e a re to back th e a tta c k
a s our boys a re now p re s s in g the a t t a c k , th e n we on th e home f r o n t have a
b ig job to do in w hat rem ains of t h i s y e a r . J u s t . a s we have s e n t our b oys,
so must we now send o u r d o l l a r s to w a r. he must t r a n s f e r ex cess incomes ‘
now accu m u latin g from p r iv a te to p u b lic u s e . Ve must draw back in to th e
T rea su ry out of th e incomes c re a te d by b u r ev er-ex p a n d in g n a tio n a l produc
t i o n an am ount<eq u h l to w hat th e Government i s sp e n d in g .
The' Government d o e sn ’t need bank money. The Government d o e sn ’t need
p r in t in g p re s s money# The Government needs th e p e o p le ’s money. I t needs,
money t h a t r e p r e s e n ts f o r th e m ost p a r t a t r a n s f e r from , n o t an a d d itio n
t o , th e a lr e a d y much too sw o llen stre am of p u rc h a sin g power#
Americans have t h a t k in d o f money in undreamed of p le n ty . And when
I s a y A m ericans. I d o n ’t, mean th e 2 p e r c e n t o f our income r e c e iv e r s who
make f iv e thousand a y e a r o r m o re. I . me an th e 9G p e r c e n t of our people
who earn f iv e thousand a y e a r or l e s s , I mean th e 32 m i l l i o n s ■employed
by b u s in e s s o rg a n iz a tio n s ^ th e 6 m illio n on government p a y r o lls — F e d e ra l,
S ta te , and lo c a l j th e /+ m illi o n se lf-e m p lo y e d , in c lu d in g p r o f e s s io n a l
p e o p le , d o m e stic s , and b u s in e s s men5 th e 10 m illio n farm ers whose income
i s g r e a te r th a n e v e r b e f o r e . I t i s th e s e Americans e a rn in g f iv e thousand
a y e ar or l e s s who have seven—e ig h th s ox c u rre n t incomes a f t e r ta x e s j and
i t i s th e s e A m ericans, and o n ly th e s e A m ericans, who can! p ro v id e t h e i r
Government w ith the funds i t so d e s p e r a te ly n e e d s .
Having rem arked t h a t in d iv id u a ls e a rn in g l e s s th a n f i v e thousand
a y e a r c o n s ti tu te our most im p o rta n t m arket f o r lia r -Bonds, .th ere i s s t i l l
th e q u e s tio n as to how th e fu n d s a re to be. o b ta in e d . This q u e s tio n lias
re c e iv e d in c r e a s in g a t t e n t i o n o f l a t e '. i n th e n a tio n ’ s p r e s s . People who
th in k in term s of simple, a l t e r n a t i v e s , who p o s s e s s 'w h a t may be d e sc rib e d
as an ’’e ith e r-—o r” m e n ta lity ^ doubt t h a t so huge a sum as th e Government
must r a i s e can be o b ta in e d from th e v o lu n ta ry sa v in g s o f the p e o p le , th a t,
th e y must be o b ta in e d , i f a t a l l , from some system of fo r c e d ex’ com pulsory
le n d in g ,
m at
t0 ef t l f t0 th iS c o n tro v e ^ y a t the p r e s e n t tim e .
n r e i n t ? ? ” '*
? g °°r e S u lt from suoh a c o n tro v e rs y a t th e
me* Th®re 1S a J ° b to be done — a stupendous jo b to be done
te d a t the p r e s e n t moment th e r e i s o n ly one way i n w hich we can do i t
That
n r 0 b^ " S+ i nS 1 +b° I he f l e l d Snd o o n d u e tin E h o u s e -to -h o u s e c a n v a s s e s i n 'e v e r y
one o x _th e n a t i o n 's c o u n tie s ; b e n o h -to -b e n c h c a n v a s s e s i n e v e r y one o f I h e
n a t io n s f a c t o r i e s ; d e s k - to - d e s k c a n v a s s e s a t e v e r y one o f th e n a t i o n 's
l u c e s . T here i s no o th e r w ay, And t h e jo b m ust be done*.
Eve? th e most s ta r r y - e y e d m ust re c o g n iz e t h a t th e re can be no system
,
la n d in g t h i s y e a r to ta k e some o f th e lo a d o f f our hands* and
re c o s n iz e t h S ^ h th e n T na-tw:e of our Problem th e y to o w i l l be f a r c e d to
a l?
l? t ^ . v h ®^s Wl1?- n ev er oe a system o f com pulsory le n d in g to ta k e
■fSr °r , t h ° lc a d ° j f o u r h a n d s. C e r ta in ly , th e r e w i l l alw ays be need f o r
the v o lu n ta ry sav in g s program i n term s o f th e jo b t h a t m ust be done
Because
a o D lie d ^ trw m 2 ?p e r a te s llkf a tax> th e
o f fo rc e d l e v i e s t h a t can be
a p p lie d to an y income group i s lim ite d by th e c a p a c ity to pay o f th o se i n
and tghe°Ur f h a re l6 a S t a b l6 ' n 0 t m0St a b l®> t0 W . The v o l u n t a „ o g r a n
w o r k e f w W Un-a i y p r ° grai? a lo n e J i s ab l® to d i f f e r e n t i a t e betw een to e w lr
on f S e d s a L ^ ° ^ s ^ S ln o rc a E e d . c o n s id e ra b ly in r e c e n t y e a rs and th e w orkers
whose a b i l i t ^ t T o
n “ c r ? ased U t i l e i f a t a l l ; betw een in d iv id u a ls
l i f e in s u ra n c e 'and^+i ^
'sai ? ° n ~E 1S a b fe o te d by p r i o r o b lig a tio n s su ch as
i M l i f e S f r
of m ortgage d e b t, and in d iv id u a ls whose
who a re
aucn c o n tr a c tu a l o b lig a tio n s ; betw een in d iv id u a ls
77
.........
t* ?°me
* ^ 0I\ a11 « * *vvux-^xng
? 10h
< * « « a,na
and ee aarn
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h eeiirr ff aa m
_
f
w in
x nnneers
m ii ll ii ee ss
Goms a b o ta g e ^ o f^ th e “ ob^ ^ , o f t ^ s e d i s t i n c t i o n s . . I t i s ta n ta m o u n t to
s u b s t i t u t e far* +* r e f f o r t y h e r e x o r e , t o s p e a r o f c c m p u lso ry le n d in g a s a
s u D s t i t u t e f o r th e jo b we have to d o ,
tn 1, 0 ^
u s n o t be s i d e t r a c k e d from th e t e r r i b l y im p o r ta n t jo b t h a t c r i e s
to be done b y a c a d e m ic a lly p o i n t l e s s d is c u s s io n o v er c o m p u lso ry v e r s u s
v o lu n ta r y E n d i n g
I t w i l l g e t us n o w h e re . Tte v o l u n t a r y p r o r r j ^ L T b e e n
fro n t
I ? t o t ° r wte n n f h ° f P y t i c i p a t i o n i n th e w ar e f f o r t on t h e home
a s v o 'n n t e p f , . f h
t h r °uS‘\ w h lch h u n d red s o f th o u sa n d s of p e o p le , a c t i n g
s e n s p 'n f rr * ° £ £ e r ®> have d e v e lo p e d , i n many c a s e s f o r tile f i r s t tim e , a h ig h
s e n s e o f community r e s p o n s i b i l i t y . T h is c o n s t i t u t e s one o f th e c o u n t r y 's
e v e r et o Sc o n -p r v S 7 h f nd l n +th ? m° n th S bo 00me i b w i l l Pb e more im p o r ta n t th a n
7
0 t h i s a s s e t t o e s t a b l i s h a f r i e n d l y e n v iro n m e n t i n w h ich i t
n“
to
t o Z T ? - -H i 6 dlV ^dendS d t WU1 W
^ c u n d t o o u ? Id v a n ta g e
t e r r i b l e w artim e d a y s , b u t i n th e y e a r s o f p eace and p l e n t |
6
.L e t’ s k eep our eye on t h e b a l l . E v ery d ay d u r in g t h e c u r r e n t fi s e a l
i n t o th e Govel? m,' n t " i l l be p o u r in g an a v e ra g e o f 265 m i lli o n d o l l a r s
t h e e n m v T r i h 0 " r + ° ? . b ° f b e r s b? b* * & e n th e enemy sky and bombs t o s e a r
t h e enemy e « .rth 5 i n t o l i g h t i n g s h ip s t o c l e a r th e U -b o a ts from th e s e a s
Se S
T
t ” 6!! f d “ a t0 ? i e l s a " e ly t o t h e f a r - f l u n g b a t t l e - f r o n t s o f
t h e n o r I d , i n t o h u n d red s ox th o u s a n d s o f v i t a l l y n eed ed w ar goods to o
num erous t o m e n tio n , t o p r e s s th e a t t a c k a g a i n s t th e enemy. W hile o u r men
M L ' Z Z Z
a 3T ed! f 0 r ° e s a r e p r e s s i n S thG a t t a c k , i t *8 o u r jo b o v er
h e re t o back th e a t t a c k — and t h a t can o n ly .b e done by r a l l y i n g t o t h e
C War/ o n d program and b u y in g bonds t i l l i t h u r t s f i t s th e
V ery l e a s t we can d o . Our s a c r i f i c e s h e r e , no m a t t e r how .^ re a t can n e v e r
d 0 e v e ry th
e oS?i Cursi.a c e s th e bG^ a ro 'm a k in g d a y - in a n f d aJ^ - o S f o r
ce alcK
n and,
one
th a t
Sa^ d tim e
a 3a in — and i t c a n n o t be r e p e a te d to o o f te n —
p e o p le ’ s w a r. I f t h i s e x p r e s s io n h as m oaning i t i s sim n lv
t h a t t h i s w ar m i l d e te rm in e th e f u t u r e d e s t i n y o f th e common man
i t PvJ - n
r =
?
t ^
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h i3
T o re ^ d ~ n T e e d S
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D uce°"nd T o i ^ w f tb a b
a ^ th o a p upon w hich t h e F u e h re r, th e
JJuce and To jo h a v - s e t th e ^ r c ra v e n h e a r t s .
*
To win t h i s w ar, t h e p e o p le — a l l t h e p e o p le —+ w i l l have t o o u t fnW-b
r S tZ r is e
T o S S E S i
th e yy pp oo ss ss ii ob lj
ly
o r t h f f ^ ^ r 330? ^ w ar ° n s °
a S
th e n L n i! 5
3 ^ “ S t a k i n g o f t h e many. O nly th e
c a n P °P
Cd.n, a r e c a p a b le o f f in a n c in°gUt t hoi’i s ctuor tr ae nl t wincom
ar. e a s much a s
Today a s n e v e r b e f o r e o u r d o l l a r s a r e c a l l e d t o th e
service of t h e i r
0^
7 ' J hCy mUSt pUt °f f th e o i v i l t a n drGSS o f p e a c e
S
tte l i f o m
s S S t h r i ^ t S l l E more b o l e r a t e i4 M d o l l a r s - we can To more t o l e r a t f
ra tw ^
d o lla rs
th a n we can t o l e r a t e i d l e mop. ijfe m ust be p a r t n e r s
r a t h e r th a n c o m p e tito rs o f o u r Government i n i t s f i g h t f o r l i f e
I t is M r tf
im wo s a y to o u r money a s we have begun t o s a y t o o u r men "Work o r F i ^ t f "
o 0 o
—
2/
COTTONCARDSTRIPS,f *COM
BERW
ASTE, LAPW
ASTE, SLIVERW
ASTE, ANDROVING-W
ASTE,
W
HETHERORNOTM
ANUFACTUREDOROTHERW
ISEADVANCEDINVALUE. Annual quotas
commencing September 20, by Countries of Origin!
2j
Total quota, provided, however, that not more than 33”*l/3 percent/ of the
quotas shall be filled by cotton wastes other than card strips/ and comber
wastes made fromcottons of 1 —
3 /l6 inches or m
ore in staple length in the
case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany and Italy:
Pounds)
%
t•(In
TOTALIM
PORTS ESTABLISHED:Imports Sept. 21,
Country of Origin:t Established : Sept. 21, 191+2 :33-1/3/5 of :19te, to1943 1/
TOTALQUOTA: July- 3. 1943 {Total Quota!July 3,
m
mm
l.iOn, 15 2
United Kingdom,..... 4,323,457
«*
86,495
Canada,
239.690
2
2
7
,U
20
75,807
Erance,««,»««».•*««*
61,823
British India,......
69,627
«*
2 2 ,7 4 7
6 8 ,2^0
Netherlands,........
B
h
%
,
3
S
S
1 4 ,7 9 6
Switzerland,........
Belguim,..............
1 2 ,8 5 3
38,559
—
Japan,«.*«.»,...*,*•
341,535
—
1
7
,3
2
2
China,
—
«
•
Egypt
8,135
6 ,5 ^
U
Cuba,..............
2
5
,4
4
3
Germany,
7 6 ,3 2 9
7
,O
S
S
2 1 ,2 6 3
Italy,................
1,599.886
TOTALS
• 'f |
5.482,509
148,318
•
mm
1/ Included in total imports, column 2.
2/ The President*s proclamation, signed March31, 19^2, exempts fromimport
quota restrictions card strips made fromcottons having a staple 1-3/16
inches or more in length.
-oOo-
IfOR IMMEDIATE RELEASE
JuXv 13. 1943________
5
The Bureau of Customs announced todgy that preliminary reports from the
c o llec to rs of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the P resident’s proclamations of September 5» 1939*
and December 19, 19^0,-as" follow s, during the period September 21, 19^2, to
July 3, 1943.
j
COTTON HAVING A STAPLE OP LESS THAU' l - l l / l 6 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OP LESS THAN 3/U INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas
commencing September 20, by Countries of Origin:
,
Country of
Origin
(in Pounds)
I
Staple length le s s 5 Staole length 1-1/8* or more
:
than 1-1 78*
:
but le s s than l - l l / l 6w
:
:Imports Sept.: Established : Imports Sept,
: Established:21, 19*+2, to :
Quota
: 21, 19^2, to
:
3, 1943 : 1+5.656.1+20 : JtOy 3. 1943
« Quota
.1 ^
Egypt and the AngloEgyptian Sudan.. . . . . . . .
P e r u .,.. . . . . . . . . . . . .........
B r itish India.. . . . . . . . . .
China............................. ..
Mexico.............................
Brazil*. . . . . . . . . . . . . . . . .
Union of Soviet
S o c ia list R ep u b lics..,.
Argent i na . • • • • • • • • • • « • • •
H a it i........... .
Ecuador...............................
Honduras..................... ..
Paraguay, ...........................
Colombia.• • . •• * • • • • • » • « •
I raq. , .
.
.
.
.
B r itish East A f r i c a . . . . ,
Netherlands East Indies,
Barbados......................
Other B r itish West
Indies
. . . . . . . . . .
N ig e ria , ................ ..
Other B ritish West
Africa 2 / .......................
Other French Africa JJ/.
Algeria and T u n is ia ... • •
723,816
21+7,952
2 , 003, 1+83
1,370,791
2 , 223,259
618,723
1+75 , 12U
5.203
237
9.333
752
271
12U
195
2 , 2U0
71,328
-
21,321
247,952
8,883,259
618,723
42,413,475
388,635
237
9,263
••
-
-
-
m"
»
«•
«
.
I jbi
-
jh
-
e»
-
11
1:
11
jf
l
|
SB
- ■
1pH
|
ft
(4
9,759,434
l+5,656,te0
n
.
|-i]
«
11
m ^ 1
—
lU, 516,882
I
|l
I ti
ii
ji
p
—
mt
5.377
16 , 00*+
689
]$
42,802,110
I
jl§
ftj
l/ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
2/ Other than Gold Coast and Nigeria.
J[/ Other than Algeria, Tunisia, and Madagascar.
»
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
Wednesday. J u ly 14. 1943.
P re s s S e rv ic e
No. 37-53
The -B u reau 'o f Customs announced to d a y t h a t p r e li m i n a iy r e p o r ts .-from th e
c o l l e c t o r s o f Customs show im p o rts o f c o t t o n and c o t t o n w a ste c h a r g e a b le t o th e
im port q u o ta s e s t a b l i s h e d by th e P r e s i d e n t s p r o c la m a tio n s o f Septem ber 5 , 1939,
and December 19, 1940, a s f o llo w s , d u r in g th e p e r io d S eptem ber 2 1 . 1942, to
J u ly 3 , 1943.
COTTON HAVING A STAPLE OE LESS THAN l n l l / 1 6 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OE LESS THAN 3 /4 INCH IN STAPLE LENGTH AND CHIEELY USED IN THE MANU
FACTURE OE BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual q u o ta s
commencing Septem ber 2 0 , by C o u n tr ie s o f O rig in :
C o u n try o f
O rig in
S ta p le le n g th l e s s
; S ta p le le n g th 1—1/ 811 o r more
th a n 1- 1 / 8'1
:
b u t l e s s th a n 1 - 1 1 /1 6 ”
:
: Im p o rts S e p t .; E s ta b lis h e d ; Im p o rts S e p t.
: E s ta b lis h e d : 2 1 , 1942, to *
Q pota
; 21, 1942, to
Q uota
; J u l y 3. 1943 ; 45*656*420 : July- 3* 1943
Egypt and th e A nglo| \ H g y p tiaa S u d a n . . . . . . . . .
Peru.
B r i t i s h I n d i a , ............. . . *
China.
** » . ^
Mexico.
Braz i l ................ . . . . . . . . . .
Union o f S o v ie t
S o c i a l i s t R e p u b l i c s ...
Argent i n a . . . . . . . . . . . . . . .
H a i t i . .............Ecuador.
H o n d u ras.. *............ ........... .. .
P araguay...........
*.... j
Colombia.
. Ira q ,. ^
,
B r i t i s h E a s t A f r i c a .........
N e th e rla n d s E a s t I n d ie s .
B a rb a d o s...................... . .
O ther B r i t i s h West
In d ie s
if ......... ..
N i g e r i a ........................ ..
O ther B r i t i s h West
A fric a 2 / , . . , . . . . . . . ,
O ther F re n c h A f r i c a . 3 /* ,
A lg e ria and T u n i s i a . , * . .
. 7 83,816
2 4 7 ,9 5 2
2 ,0 0 3 ,4 8 3
1 ,3 7 0 ,7 9 1
8-,883,259
618,723
4 7 5 ,1 2 4
5 ,2 0 3
237
9 ,3 3 3
752
871
124
195
2 ,2 4 0
71,388
4 2 ,4 1 3 ,4 7 5
388,635
2 4 7 ,9 5 2
r
8,883*259
618,723
A
237
9 ,2 6 3
2 1 ,3 2 1
5-, 377
1 6 ,0 0 4
689
1 4 ,5 1 6 ,8 8 2
—
9*759,434
01 X
c
- jsarD aaos, Bermuda-, J a m a ic a , T ri'n i
■- J. O th er th a n Gold C o ast and N ig e r ia .
W
0 th e r th s n A lg eria-, T u n is ia , and M adagascar.
4 5 ,6 5 6 ,4 2 0
4 2 ,8 02*110
p j_
CARD STRIPS,'- 2/ COMBER WASTE, LAP WASTE, SLIVER WASTE
WHETHER^ OH NOT MAlfUFACTOTED OR OTHEKWS* ADVANCED
« S
commencing S eptem ber 2 0 , by C o u n tr ie s o f O rig in *
qOjjq jj
AND ROVING
T n S q u o tf
’
p ro v id e d , h ow ever, t h a t n o t more th a n 3 3 -1 /3 p e r c e n t o f th e . q u o ta s
s h a i l b e f i l l e d by c o t t o n w a s te s o th e r th a n c a r d s t r i p s 2 / and com ber w a ste s
made frotn c o t to n s o f 1 - 3 /1 6 in c h e s o r more in s t a p l e le n g th i n th e c a s e o f
th e f o llo w in g c o u n tr ie s * U nited- Kingdom, P ra n c e , N e th e r la n d s , S w itz e rla n d
B elgium , Germany an d I t a l y .
Countxy o f O rig in : E s ta b lis h e d
--------------------------- —h-IOTAT, QUOTA
U nited Kingdom. . . . . .
4 ,3 2 3 ,4 5 7
Canada .
...........
2 3 9 ,6 9 0
franco.. . . . . . . . . . . . .
2 2 7 ,4 2 0
B ritis h I n d i a . . , . . . ^
6 9 ,6 2 7
Netherlands.. . . . . . , j
6 8 ,2 4 0
Switzerland,
.
4 4 ,3 8 8
Belgium..................
3 8 ,5 5 9
■ p a n , ..
3 4 1 ,5 3 5
C h in a .., , .
17,3 2 2
E g y p t ,. .... . . . . .
8 ,1 3 5
Cuba, *, . .
6 f544
Germany.. . , . . . .
76', 329
I t a l y , . . , . , . . , . , V’. . ,
2 1 ,2 6 3
TOTALS
j:il/
. TOTAL IMPORTS *ESTABLISHED,: Im p o rts S e p t. 2 1 .
: S e p t, 21, 1 9 4 2 :3 3 -1 /3 ^ o f *1942 to
s J u ly 3 / 1943 i T o t a l f o n t a i J u l y *3. 194.3 1 /
1 ,4 4 1 ,1 5 2
8 6 ,4 9 5
-
7 5 ,8 0 7
6 1 ,8 2 3
i.
*
.
2 2 ,7 4 7
1 4 ,7 9 6
1 2 ,8 5 3
kt
-
2 5 ,4 4 3
7 ,0 8 8
148,318
1 ,5 9 9 ,8 8 6
In c lu d e d in t o t a l im p o r ts , colum n 2 . ■
I
s ig n e d M arch 3 1 , .1 9 4 3 , exem pts from im p o rt
in c h e s o r more i n le n g th . ^
mad8 from c o t to n s
■oOo-
a ^ a p l e 1 -3 /1 6
w m 3B U U 1S l i m
it
P r m m $&nr±m
§#*
fim trm m xsy IN pM rtoett
to te y tim t t o U »# fo r filin g
rep o rt# o f 4MT&9«A-«wtd p ro p erty M fo reig n eoim trl## cm for® fpt*$00
M # fe##a « & to d # d to f e e w t o r Xf X943#
pmrmmm
M$ X%h
f r # # ie a # ly » r e v e r i e fey
&& Xts# Halto $imtm wore repaired to bo mbaitto lay
A O o r o f a i H u r r a y o f t o « t c * e f o r » e o o « |S tX i# fe # d e s i o f t b # r # *
port® £XX#d «tae# «l»® 3# 1943# t o # t o ##m n # #*# m m vm *$9 m i
uut^um^mm ritfe various* group# o f p#r#oti$ req u ire d to im port #g$d witfe
t o F to m X i# f# r* e M fe## tfeleh or# 41*trlhtttl& g t o fo ra * , t o lad to tatf
t o t saeay pis#mm *1X1 n o t fe# #fel# to eoagtot# th # ir rep o rt# fey imp*®! ifX943f t l t o i i i m $m h#rd#hip*
tfeiX# th# Tr#e#ury
i# oaaieu# to ##eur# tfe# rlt*X t o
m
i b I h i t o g r t o s i® #*©rv
•*• of t o |* * w t» w titM i la to tr i# # t o t o tfifflfluiti*# of efetaiaias
proper t o r i t o . ft##i#toe# a t to® to # * f t t o «X#o t o n p eitsto m%
tgr ©ortou ©ostpaisX#© imrtm # tto # ir # for#!®# feoldiag# t o t t o %m$
pml&d #f t o # required for t i m s o i i t o of *&iX to t o from forolfn i m i
»Xg&t In #00# t o to e # # p re re u t to # # m m pm im from ftaiilafeiag #& mm*
pX#t# t o emmr&t# %®£®rm%im m rnyM fe# i*©©©#|*Xl#fe#d i f # #©a#tot
X«a^#r t o # »#r# gr* » to « I# rl«# of w& * <m*i<to#Ucm#9 i t ®*#to
pr#f#ntfel# to giro a f i t o # * t o « t o of t o # to «0X pmtmm * ff# eto
r # t o r t o n to require %ppUm%im® fo r #xt«w to#« f t 1# fe#U#to t o t
i® *i*ftO%m©©eoist o f tfe# #ftt©tt#X©9 a t till# tiiae «1XX ©oahX© thoa#
to re p o rt to pX#a t o i r m rk m t o to m s# in «ueh & m y a# to mk# m*%
#ffl#ii*si u## of t o i r amlXel&a faaUXtl##*
£®tmUm whim t o report® #IXX mpgXy* I t
f t * 1 U fe® o f M tS u ito
to t o
t o # w f if
tfeo## p e rro n # fearin g tf e e ir d o t# &r#lXa&X© ta d M f in tfee pro©©#© o f #@a*
pXXing their r e p o r t# fiX # to o # # e mom a# tfe#y «.y# © o e p la tsd i n o rd e r
t o t t o f r m m e r y s ^ y proo##d on t o # # i f t o t t o » m i
fie#X fix in g dot# o f $ar##b#r X# Xf439 wiXi mppXy to p«r»oa#
ofereiid t o «r# msfejoet to t o j v r t o i e t t o o f t o t o t , t o f t u t o ## ##U
4# to fterssoe# w lto ia t o Q b ito i t o t o *
TOtor##t a to m # t#las SS 7/X3/X3
tm
t m e m m
Pre*» Service
Be.
L
l*\
**$****
trmmxxf Pap&rfeatki
M ar feat fe© Um far fn w
of ia#rie»-a«ad proparly la fortAfft countrlat on Fora TFIWfOO
a&iandad to forasfear X# 194$* Prarioiialr# ra$#Fi® p«r&o»a
la Vm UalWd Si&taa
to fea aabalttadi If* $m$m%31# 1943#
A aaram «umj of tha work ao far
sad of fea r®~
ports «Had *laaa fan# % 1943# wban fea 0012*0®wm 0m@mmi§ m4
dlaauaaiaaa aife wmimm $rmgm of paraoiui raquirad to popart sad wife
Hw radars! Staaapwa Bank*# tUdi ara dl®trilaitiag tfe# fora#* %
&&ladisstedl
mrnt ttaap |Mraoaa aiU not if sbl# to aoalftate thalr .rapori* by # « § t k,
1943# litteat oadna feardafelp*
fell# ttea trmmxr? Oaparfeao%1® mmSm* to »«#ur« fea ritai la*
faraaklaa feldti fe# raporta will am^lr# it raaoaaiaaa lilt growing skori*
*4® ** m$wmm la mwimm fedsatria# sad fea dlfflauifeaa of ofefel»teir
&+9** el#rie*a, » is iita a si tU» Una# I t baa ala# M i poinfet oat
V ®«wisia mmgmmtm fcsriag m.%m*Ira f#rai§» boldine® feat l li last
^
^ Has rataInal far tvaaswlttal of a U to and &*» t^mlm im i
aatbi la m * iastaaoa®
feana eosptmia* fro#
m mm®
Plata sad saaavata iafara&tioa a® aottld fea aQaafiftpllfead If # mmmmt ■
%km
gfs&iad# la rio* of feaaa <xm®ldar*U<m®, it mmm&
prafarafela to «lwa a ganarml axtaaaloa of ife* to »U param* affsalad
mfear fesa to rwepir# *ppU«*Uaa» for aKtanslon®, f% l® MLiavad feat
«
of fe# «*taa®t*n at fel® Um will aasfela feats# ratatrad
fe rapart fe $&#& fealr «#rk m fea donas# In ®ua& a wmr *# t® JMks ®©®%
afflai«at maa of feair arailata# fseillUag#
Xi #111 W. R d#fl»ii« aaalatcaaa to fe« traaaurr# hawavar. if
feoaa par«oas baring feair dais awaUatta and now ia fea
of ao@*
plHat fealr rafort® fila feaa m mm, m feagr #ra aoaplated i# ori«p
M i fea trasisarr #»r praaaai -#maUM&flaatUMi and assly®!#*
Hit final filing data #f fewwfear 1# 1943# s ill «®*pir to parass®
abroad ®to »
an tja ei ta fe# Jitrladiatioa o f fe# tfeitad atafe® m m il
m to part##® w ife!* ilia fe lta d Sfefe®,
rntf ''
u .
wmaavaaiWfeBfnataiBiJW 7/13/43
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
Wednesday, J u ly lh , 19^-3*
P re s s S e rv ic e
No, 37~5^
The T re a su ry D epartm ent announced to d ay t h a t th e tim e f o r
f i l i n g r e p o r ts of AmeriQan-owned p ro p e rty in fo re ig n c o u n tr ie s
on Form TFR-500 has been ex tended to November 1, 19^3*
P r e v i
o u sly , r e p o r ts by p e rso n s in th e U n ite d S ta te s were r e q u ir e d
to be su b m itte d by August 31, 19^3*
A c a r e f u l survey o f th e work so f a r acco m p lish ed and of
th e r e p o r ts f i l e d s in c e June 3> 19^3; when th e census was
announced, and d is c u s s io n s w ith v a rio u s g roups o f p erso n s r e
q u ire d to r e p o r t and w ith th e F e d e ra l R eserve Banks, which
a re d i s t r i b u t i n g th e form s, has in d ic a te d t h a t many p erso n s
w i l l not be a b le to com plete t h e i r r e p o r ts by August J l , 19^3>
w ith o u t undue h a r d s h ip .
W hile th e T re a su ry D epartm ent i s an x io u s to se cu re th e
v i t a l in fo rm a tio n w hich th e r e p o r ts w ill su p p ly , i t re c o g n iz e s
th e growing sh o rta g e of manpower in v a rio u s I n d u s tr ie s and th e
d i f f i c u l t i e s of o b ta in in g p ro p e r c l e r i c a l a s s is ta n c e a t t h i s
tim e . I t has a ls o been p o in te d o u t by c e r t a i n com panies h aving
e x te n s iv e f o r e ig n h o ld in g s t h a t th e lo n g p e rio d of tim e re~
q u lre d f o r t r a n s m i t t a l o f m ail to and from f o r e ig n a re a s m ight
in some in s ta n c e s .p r e v e n t th o se com panies from f u r n is h in g as
com plete and a c c u r a te in fo rm a tio n as co u ld be accom plished i f ,
a somewhat lo n g e r tim e were g r a n te d , I n view o f th e s e con
s i d e r a t i o n s , i t seemed p r e f e r a b le to g iv e a g e n e ra l e x te n s io n
of tim e to a l l p e rso n s a f f e c t e d r a t h e r th a n to r e q u ir e a p p lic a
tio n s f o r e x te n s io n s , I t I s b e lie v e d t h a t an announcement of
th e e x te n sio n a t t h i s tim e w i l l en a b le th o se r e q u ir e d to r e p o r t
to p la n t h e i r work on th e census in such a way as to make most
e f f i c i e n t use o f t h e i r a v a ila b le f a c i l i t i e s ,
I t w i l l be o f d e f i n i t e a s s is ta n c e to th e T re a su ry ,
i f th o se p e rso n s h av in g t h e i r d a ta a v a ila b le and now in
p ro o e ss o f co m p ilin g t h e i r r e p o r ts f i l e them as soon as
a re com pleted in o rd e r t h a t th e T re a su ry may p ro ceed on
f i c a t i o n and a n a l y s i s , \
however,
th e
th ey
c la s s i
The f i n a l f i l i n g d a te of November 1, 19^3* w ill ap p ly to
p erso n s ab ro ad who a re s u b je c t tp th e j u r i s d i c t i o n o f th e U nited
S ta te s as w ell as to p e rso n s w ith in th e U n ite d S ta te s*
-oOo-
TREASURY DEPARTMENT
Washington
t
B RELEASE, /IfTiCKfyOCN &
Press Service
No. 37-55
Praise o f the War Bond purchase record of American workers from the
111;
'
/
•
Judicial and L egislative branches of the government i s voiced in le tte r s
addressed to Secretary Morgenthau by Chief Justice Harlan F. Stone of the
Supreme Court and Senators Walter F.George and Arthur H. Vandenberg, ranking
members of the Senate Finance Committee, and Representatives Robert L. Doughton
and Harold Knutson, ranking members of the House Ways and Means Committee.
Paying trib u te to the success of the Voluntary Payroll Savings Plan
of the Treasury*s War Finance D ivision, Chief Justice Stone wrote the
Secretary as follows*
"Both you and the country are to be congratulated on the striking
success of the Voluntary Payroll Savings Plan. Through i t twenty-seven
m illio n wage earners are regularly investing in Government bonds more than
$420,000,000 a month to meet the cost o f the war. This is of primary
importance as an aid to winning the war and as a safeguard against inflation.
3ut i t is also important that so many of our fellow c itiz e n s are reviving the
forgotten art of saving from earnings. One way o f securing freedom from
want in the future i s by saving from the plenty o f today."
The le tte r signed by the four members of Congress follows*
"Thank you for sending us the description of your expanded payroll
savings drive based on the theme "Figure I t Out Yourself."
"The House Ways and Means Committee and the Senate Finance Committee
are happy to support the present drive to increase the purchases of War
Savings Bonds through the/Payroll Savings Plan. This plan has already
achieved a fin e record. The fact that twenty-seven m illion American working
men and women are settin g aside almost 10 percent o f every pay envelope and
salary check speaks for i t s e l f .
"We agree with you, however, tha$ public participation in the
financing o f t h is war should be and must be stepped up m aterially. Not
only does the Treasury need added funds, but every dollar diverted from
the purchasing stream into savings i s a contribution to the figh t against
in fla tio n . We wish you success in th is campaign and we know that the American
people w i l l respond to th is appeal as they have in the past."
- o )(0 )(o -
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
to
Mr* Schwarz
from
Mr* Shead
Here i t the release on the Chief Justice's letter
to the Secretary*
Since it has the Secretary's name in it ,
you w ill lik ely want to send i t out as a Treasury release*
TREASURY DEPARTMENT
W ashington
FOR RELEASE, AFTERNOON NEWSPAPERS,
T hursday, J u ly 15, 1 9 ^ 3 ._______ ___
P re s s S e rv ic e
No. 37-55
7 /1 - A 3
P r a is e o f th e War Bond p u rch ase re c o rd o f American
w orkers from th e J u d i c i a l and L e g is la t iv e b ra n c h e s o f th e
Government i s v o ic e d in l e t t e r s a d d re sse d to S e c re ta ry
M orgenthau by C h ief J u s t i c e H arlan F, Stone o f th e Supreme
C ourt and S e n a to rs W a lte r F , George and A rth u r H. Vandenberg,
ra n k in g members o f th e S en ate F inance Com mittee, and R epre
s e n ta ti v e s R obert L, Boughton and H aro ld K nutson, ra n k in g
members o f th e House Ways and Means Com m ittee,
Paying t r i b u t e to th e su c cess o f th e V o lu n tary P a y r o ll
S avings P lan o f th e T re a s u r y 1s War F in an ce D iv is io n , C h ief
J u s t i c e Stone w ro te th e S e c r e ta r y as fo llo w s :
"Both you and th e c o u n try are to be c o n g r a tu la te d on
th e s t r i k i n g su c c e ss o f th e V o lu n tary P a y r o ll S avings P la n . ,
Through i t tw e n ty -se v e n m illio n wage e a rn e rs a re r e g u la r ly
in v e s tin g in Government bonds more th a n $ ^2 0 ,0 0 0 ,0 0 0 a
month to meet th e c o s t o f th e war. T h is i s o f p rim ary im
p o rta n c e as an a id to w inning th e war and as a sa fe g u a rd
a g a in s t i n f l a t i o n , But i t ia a ls o Im p o rtan t t h a t so many
o f ou r fe llo w c i t i z e n s a r e r e v iv in g th e f o r g o tte n a r t o f
sa v in g from, e a rn in g s . One way o f s e c u rin g freedom from want
in th e f u tu r e i s by sav in g from th e p le n ty o f to d a y ,"
The l e t t e r sig n e d by th e fo u r members o f Congress
fo llo w s;
"Thank you f o r sen d in g us th e d e s c r ip tio n o f your ex-*
panded p a y r o ll sa v in g s d r iv e b ased on th e theme 1F ig u re I t
Out Y o u r s e lf . 1
"The House Ways and Moans Committee and th e s e n a te
F inance Committee a re happy to su p p o rt th e p r e s e n t d r iv e to
in c re a s e th e p u rc h a se s o f War S avings Bonds th ro u g h th e
~ 2 -
F a y r o ll S avings Plan',. T h is p la n h as a lre a d y ac h iev e d a f in e
r e c o r d . The f a c t t h a t tw e n ty -se v e n m illio n American w orking
men and women a re s e t t i n g a s id e alm o st IQ p e rc e n t Of every
pay envelope and s a la r y check speaks f o r i t s e l f .
“We a g re e w ith you, however, t h a t p u b lic p a r t i c i p a t i o n
in th e f in a n c in g o f t h i s war should be and must be step p ed
up m a t e r i a l l y . Not o n ly does th e T re a su ry need added fu n d s,
b u t every d o l l a r d iv e r te d from th e p u rc h a s in g stre a m in to
sa v in g s i s a c o n t r ib u t io n to th e f i g h t a g a in s t i n f l a t i o n ,
We w ish you su c c e s s in t h i s campaign and we know th a t th e
American p eo p le w i l l resp o n d to t h i s a p p e a l as th e y have in
th e p a s t , 11
~oOo-
• 2 *•
i
It is impossible for me to estimate the value of the help we are getting and,
I hope, f i l l continue to get from a ll you people In the entertainment industry*
Ho other single group is so olose to the heart of the American people* Ho other
group can better s e ll the need for sacrifice*
In jview of the huge job that lie s ahead, le t me now ca ll upon you in the
entertainment industry to give us more help than ever before*
It is a lot to
ask, bui we are asking a lot of everyone* We are asking the American people for
more than twice as much money in the last six months of this year as they invested
in War Bonds during the fir st six months* We are counting upon the Amerioan
people 4° give us this money, because they know i t Is necessary*
They know our
foroes are fighting on a dosen fronts a ll through the world, and have now invaded
|
the lands of our enemies, and accordingly our need for equipment and the machinery
of war Moms day by day* The Home Front must continue to supply men, money and
spirit*
The1first rule of total war Is that everyone does whatever he oan do best,
I
and the entertainment industry knows what i t oan do bests
The people of this
industry kaoM that they oan do more, as individuals, to raise money and to build
sp irit th^n almost any other single group anywhere*
I
I sincerely hope you w ill recognise that, and w ill say, "We have done our bit,
now you w ill see our beet."
wm
m m m m
alls
m
Fred Sm ith-er
T reasury Department - O ffice of tty|
•tee
Mr. T edflu Gamble
W aldorf-A storia
JNsw T ^ k ,
i n p r * roil
th e
m essage t o ia ie je esb e r s h r ^ e Entert&inaint
Iijdttstry.1^
*
w ish X were a b le to pay you a s r ic h a tr ib u te a s you d eserve ^ -you people of
i
th e entertainm en t in d u str y . What you have d on e, and what you are doing fo r your
f t
country in jt h is war i s r e p r e se n ta tiv e o f th e f in e s t ty p e o f p a tr io tism .
i s a c it iz e n , | know what you a r e doing in our cam ps, and abroad, and in our
c i t i e s through your C anteens and S e r v ic e G roups,
i s a c it iz e n , I am proud of you.
i s S ecreta ry o f th e T reasu ry, 1 aw store than proud, fo r I have come to depend
upon you .
j
When jthe f i r s t Bond program s ta r te d , you d id n ot w a it to be c a lle d in to
a c tio n .
| 0u v o lu n te e r e d , you o ffe r e d th e T reasury your every t a l e n t and fa c ility ?
alm ost b efo re th e announcement o f th e f i r s t Bond campaign had covered th e country,
you had taken o f f your c o a ts , r o lle d up your s le e v e s , and asked fo r a job to do.
in d you d id it *
j
.
S in ce th a t tim e, you have never l e t up in th e e n e r g e tic p u rsu it o f your duty
I
to your cou n try.
|
You have g iv en us th e magic o f your th e a te r s and m ovie h o u ses.
Through your
f
huge rad io a u d ien ce s, you have opened th e door to n e a r ly every home throughout
th e len g th and breadth o f th e n a tio n .
S o n g w riters, a u th o r s, s c r ip tw r ite r s ,
s in g e r s , a c to r s — -hundreds o f you have made Bond s e llin g th e m ost im portant thing
in your l i v e s fo r th e d u ra tio n .
g g |M p « *
#5 m
j
< rC
The fo llo w in g message from S ecreta ry Morgenthau
to th e N a tio n a l Entertainm ent Industry C ouncil was read
a t th e m eeting o f the C ouncil in New York today by Ted R.
Gamble, A s s is ta n t to the S ecreta ry and N ation al D irecto r
o f th e T reasury’s War Finance D iv isio n :
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE
Wednesday, J u ly 1M-, 3.9^3 ♦
P re s s S e rv ic e
No, 37-56
The fo llo w in g message from S e c r e ta r y M orgenthau to th e
N a tio n a l E n te rta in m e n t I n d u s tr y C o u n cil was re a d a t th e m eet
in g o f th e C o u n cil in New York to d ay by Ted R* Gamble, A s s i s t
an t to th e S e c r e ta r y and N a tio n a l D ir e c to r o f th e T r e a s u r y 's
War F inanoe D iv is io n ;
I w ish I were a b le to pay you as r i c h a t r i b u t e as you
d eserv e — you p e o p le o f th e e n te r ta in m e n t I n d u s tr y , What you
have done, and what you a r e d o in g f o r your c o u n try in t h i s war
i s r e p r e s e n t a t i v e of th e f i n e s t ty p e o f p a t r i o t i s m f
As a c i t i z e n , I know what you a re d o in g in our. camps, and
abroad, and in our c i t i e s th ro u g h your C anteens and S e rv ic e
Groups* As a c i t i z e n , I am proud of you. As S e c r e ta r y of th e
T re a su ry , I am more th a n proud, f o r I have come to depend upon
you.
When th e f i r s t Bond program s t a r t e d , you d id n o t w a it to
be c a l l e d I n to a c t i o n . You v o lu n te e r e d , you o f f e r e d th e T r e a s
u ry your ev e ry t a l e n t and f a c i l i t y j alm o st b e f o r e th e announce
ment o f th e f i r s t Bond campaign had co v e re d th e c o u n try , you
had ta k e n o f f your c o a ts , r o l l e d up your s le e v e s , and ask ed f o r
a jo b to &ot< And you d id i t .
S ince t h a t tim e , you have n e v e r l e t up in th e e n e r g e tic
p u r s u it o f y o u r d u ty to your c o u n try .
You have g iv e n us th e magic o f your t h e a t e r s and movie
h o u ses. Through your huge r a d io a u d ie n c e s , you have opened th e
door to n e a r ly ev ery home th ro u g h o u t th e le n g th and b r e a d th o f
th e n a t i o n . S o n g w rite rs , a u th o r s , s c r i p t w r i t e r s , s in g e r s ,
a c to r s
h u n d red s o f you have made Bond s e l l i n g th e most im por
ta n t th in g in your l i v e s f o r th e d u r a tio n ,'
I t i s im p o s s ib le f o r me to e s tim a te th e v a lu e o f th e h e lp
we a re g e t tin g - a n d , I hope, w i l l c o n tin u e to g e t from a l l you
people in th e e n te r ta in m e n t in d u s tr y .- No o th e r s in g le group
Is so c lo s e to th e h e a r t o f th e American people,. No o th e r
group can b e t t e r s e l l th e need for s a c r i f i c e .
. . .
- -2 ~
In view o f th e huge jo b th a t l i e s ahead, l e t me now c a l l
upon you in th e e n te rta in m e n t in d u s tr y to g iv e us more h e lp th a n
ev e r b efo re* I t i s a l o t to ask , b u t we a r e a sk in g a l o t of
ev ery o n e, We a re a s k in g th e American p eo p le f o r more th a n tw ice
as much money in th e l a s t s i x months o f t h i s y e a r as th e y i n
v e s te d in War Bonds d u rin g th e f i r s t s ix m o n th s/ We a re c o u n t
in g upon th e American peo p le to g iv e us t h i s money,, b ecau se th e y
know i t i s n ec essary * They know our f o r c e s a re f i g h t i n g on a
dozen f r o n t s a l l th ro u g h th e w o rld , and have now invaded th e
la n d s o f our enem ies, and a c c o rd in g ly our need f o r equipm ent and
th e m achinery o f war r i s e s day by day, The Home F ro n t must con
tin u e to su p p ly men, money and s p i r i t . ,
The f i r s t r u l e o f t o t a l war i s t h a t everyone does w h atev er
he can do b e s t, and th e e n te rta in m e n t in d u s tr y knows what i t can
do b e s ts The p eo p le of t h i s in d u s tr y know t h a t th ey can do more,
as in d iv id u a ls , to r a i s e money and to b u ild s p i r i t th a n alm o st
any o th e r s in g le group anyw here.
I s in o e r e ly hope you w i l l re c o g n iz e t h a t , and w i l l say ,
We have done our b i t , now you w i l l see o u r b e s t .*
-0O0-
37
TOE IMMEDIATE RELEASE
July 33. 1943________
The Bureau of Customs announced today preliminary figures shoving
the quantities of coffee authorized for entry for consumption under the
quotas for the 12 months commencing October 1, 1942, provided for in the
Inter-American Coffee Agreement, proclaimed by the President on April 151
1941, as follows:
•
Country of
Production
Signatory Countries:
Brazil
Colombia
Costa Eica
Cuba
Dominican Eepublic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Quota Quantity
(pounds) 2J
2,172,359,753
735,840,277
46,718,031
18,692,451
25,752,947
35,041,235
140,776,585
134,978,598
64,236,136
4,378,467
111,292,661
45,818,819
5,839,588
90,021,490
Non-signatory Countries:
)
British Snpire, except
)
Aden and Canada
)
Kingdom of the Netherlands)
and i t s possessions
) 75,969,017
Aden, Yemen, and Saudi
)
Arabia
)
Other countries not signa?-)
tories of the Inter)
American Coffee Agree- )
ment
)
]J
Quotas revised as of March 5, 1943*
—oOo—
!
Authorized for entry
for consumotion
e* As of (Date) : (Pounds)
July 3, 1943
H
a
a
a
a
531,885,266
448,891,607
34,498,493
9,932,571
17,307,160
17,351,587
111,738,617
73,106,100
52,769,380
4,168,398
54,619,644
22,768,988
217,798
60,460,648
*
31,817,731
n
B
N
a
a
a
a
a
TREASURY DEPARTMENT
W ashington
EOR-‘IMMEDIATE RELEASE,
Wednesday, J u ly 14. 1943.
P r e s s S e r v ic e
No. 3 7 -5 7
The B u reau o f Customs ^announced to d a y p r e lim in a r y f i g u r e s show ing th 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 tr y f o r c o n su m p tio n u n d e r th e q u o ta s
f o r th e 12 m onths commencing O c to b er 1, 1942, p ro v id e d f o r in th e I n t e r A m erican C o ffe e A greem ent, p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941, a s
f o llo w s ;
C ountry o f
P ro d u c tio n
S ig n a to ry C o u n tr ie s ;
B ra z il
C olom bia
C o s ta R ic a
Cuba
.D om inican R e p u b lic
E cuador
E l S a lv a d o r
G uatem ala
H a iti
H onduras
M exico
N ic a ra g u a
P e ru
V en ezu ela
;
;
;
Q uota Q u a n tity
(p o u n d s) 1/
2 ,1 7 2 ,3 5 9 ,7 5 3
7 3 5 ,8 4 0 ,2 7 7
4 6 ,7 1 8 ,0 3 1
1 8 ,6 9 2 ,4 5 1
2 5 ,7 5 2 ,9 4 7
3 5 ,0 4 1 ,2 3 5
1 4 0 ,7 7 6 ,5 8 5
1 2 4 ,9 7 8 ,5 9 8
6 4 ,2 3 6 ,1 3 6
4 ,2 7 8 ,4 6 7
1 1 1 ,2 9 2 ,6 6 1
4 5 ,8 1 8 ,8 1 9
5 ,8 3 9 ,5 8 8
9 0 ,0 2 1 ,4 9 0
N o n ~ sig n a to ry C o u n tr ie s ;
)
B r i t i s h E m pire, e x c e p t
)
Aden and C anada
)
Kingdom o f th e N e th e r la n d s )
and i t s p o s s e s s io n s
) 7 5 ,9 6 9 ,0 1 7
Aden, Yemen, and S au d i
)
A ra b ia
)
O th er c o u n t r i e s n o t sign** )
t o r i e s o f th e I n t e r )
A m erican C o ffe e A g ree- )
ment
)
1/
Q uotas r e v i s e d as o f March 5 , 1943.
t
;
A u th o riz e d f o r e n tr y
;
f o r co n su m p tio n
? As o f (R a te ) ; (P ounds)
J u ly 3, 1943
it
ti
ti
I!
II
It
IT
If
It
5 3 1 ,8 8 5 ,2 6 6
4 4 8 ,8 9 1 ,6 0 7
3 4 ,4 9 8 ,4 9 3
9 ,9 3 2 ,5 7 1
1 7 ,3 0 7 ,1 6 0
17 ,3 5 1 ^5 8 7
1 1 1 ,7 3 8 ,6 1 7
7 3 ,1 0 6 ,1 0 0
5 2 ,7 6 9 ,3 8 0
4 ,1 6 8 ,3 9 8
5 4 ,6 1 9 ,6 4 4
2 2 ,7 6 8 ,9 8 8
2 1 7 ,7 9 8
6 0 ,4 6 0 ,6 4 8
l|
3 1 ,8 1 7 ,7 3 1
H
II
It
n
POR IMMEDIATE RELEASE
3 7 ~ ~ CHS
July 14. 1943_______
The Bureau of Customs announced preliminary figures for imports of com
modities within quota limitations provided for under trade agreements, from
the beginning of the quota periods to July 3, 1943, inclusive, as follows:
Commodity
:_____ Established Quota
: Unit of :Imports as of
jPeriod and Country: Quantity :Quantity : July 3, 1943
Whole milk, fresh or
sour
Calendar year
3,000,000
Gallon
, 4,044
Cream, fresh or sour
Calendar year
1,500,000
Gallon
465
Pish, fresh or frozen,
f ille te d , e t c ., cod,
haddock, hake, pollock,
cusk and rosefish
Calendar year
15,000,000
Pound
7,275,017
White or Irish potatoes;
Certified seed
12 months from
Other
Sept. 15, 1942
90.000.
60.000.
000
Pound
000
Pound
65,717,578
1,132,407
Red cedar shingles
Calendar year
Cuban f ille r tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
Molasses and sugar
sirups containing sol
uble nonsugar solids
equal to more than 6$
of total soluble solids
Calendar
year
Silver or black foxes,
furs, and articles:
Poxes valued under
Period - May $250 ea. and whole
Nov. 1943
furs and skins
All countries
Tails
12 months from
Dec* 1, 1942
2,506,072
22,000,000
Square
Pound
(unstemmed
equivalent) (Quota filled)
Gallon
52,078
33,229 Number
19,856
1,500,000
5,000 Piece
Paws, heads, or other
separated parts
n
500 Pounds
Piece plates
*
550 Pounds
A rticles, other than
piece plate8
*
500 Unit
oOo-
778,743
462
(Quota filled)
m
f
TREASURY DEPARTMENT
W ashington
POR IMMEDIATE RELEASE,
T hursday, J u ly .15, 1943,
P re s s S e r v ic e
No. 37-58
The B ureau o f Customs announced p r e lim in a r y f i g u r e s f o r im p o rts o f commod>
i t i e s ' w ith i n a u o ta l i m i t a t i o n s p ro v id e d f o r u n d e r tr a d e a g re e m e n ts , from th e b e g in n in g ,of th e q u o ta p e r io d s to J u ly 3, 1943, i n c l u s i v e , as fo llo w e r
Commodity
*
t.
U n it
:
Im p o rts
E s ta b lis h e d Q uota
,
!
of '
:
as of
* P e r io d and Countpy : Q u a n tity ; Q u a n tity ) J u ly 3, 1943
Whole m ilk , f r e s h o r
so u r
C a le n d a r y e a r
3 ,0 0 0 ,0 0 0
G allo n
4 ,0 4 4
Cream, f r e s h o r s o u r
C a le n d a r y e a r
1 ,5 0 0 ,0 0 0
G a llo n
465
P is h , f r e s h o r f r o z e n ,
f i l l e t e d , e t c . , co d ,
haddock* h ak e, p o ll o c k ,
Cusk and r o s e f i s b
C a le n d a r y e a r
1 5 ,0 0 0 ,0 0 0
White o r I r i s h p o ta to e s ;
C e r tif ie d seed
O th er
9 0 .0 0 0 .
6 0 .0 0 0 .
Red c e d a r s h in g le s
Cuban f i l l e r to b a c c o ,
unstemmed o r stemmed
( o th e r th a n c i g a r e t t e
l e a f to b a c c o ) , and
s c ra p to b a c c o
12 m onths from
S e p t, 15, 1942“
\
C a le n d a r y e a r
2 ,5 0 6 ,0 7 2
Pound
7 ,2 7 5 ,0 1 7
000Pound
000Pound
6 5 ,7 1 7 ,5 7 8
1 ,1 3 2 ,4 0 7
S au are
7 7 8 ,7 4 3
Pound
(unstem m ed
e q u iv a le n t)
(Q u o ta
f ille d )
C a le n d a r y e a r
2 2 , 000,000
M olasses and s u g a r
s ir u p s c o n t a in in g s o l
u b le n o n su g a r s o l i d s
e q u al t o more th a n 6$
o f t o t a l s o lu b le s o l i d s C a le n d a r y e a r
1 ,5 0 0 ,0 0 0
G allo n
5 2 ,0 7 8
3 3 ,2 2 9
Number
1 9 ,8 5 6
S ilv e r o r b la c k f o x e s ,
f u r s , and a r t i c l e s ;
Poxes v a lu e d u n d e r
$350 e a , and whole
f u r s and s k in s
p e r io d - MayNov. 1943
A ll c o u n t r i e s
~ 2 -
_
....
Commodity
T a ils
*
- . ,.. , . .
•
U n it
;
Im p o rts
«
E s ta b lis h e d Q pota
♦■
0f
.
as o f
: P er io<3- an d C o u n try ; Q u a n tity t Q u a n tity : J u ly 3 , 1943
12 m onths from
Dec. 1, 1942
Paws* h e a d s , o r o th e r
s e p a ra te d p a r ts
n
P ie c e p l a t e s
it N*
A r t i c l e s , o th e r th a n
p ie c e p l a t e s
«
5 ,0 0 0
P ie c e
500
Pounds
550
Pounds
500
U n it
'
462
(Q p o ta f i l l e d )
58
FOB IMMEDIATE RELEASE
July 13. 1943_______ ,
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 proclama
tion of May 28, 1941, as modified by the President's proclamations of April
13, 1942, and April 29, 1943, for the 12 months commencing May 29, 1943, as
follows:
*Wheat flour, semolina,
WHEAT
: crushed or cracked wheat,
:
: and similar wheat nroduct8
:
Imports
:
: Established : May 29, 1943, : Established:.. *5*P°
:to July 3, 1943>1 Quota t t& J z L
$
Quota
(Pounds)
(Pounds)
(Bushels)
(Bushels)
3,815,000
37,463
795,000
795,000
Canada
mm
mm
24,000
China
13,000
Hungary
13,000
Hong Kong
mm
8,000
Japan
75,000
United Kingdom
100
mm
•
•
1,000
Australia
5,000
Germany
100
•
5,000
100
Syria
mm
—
1,000
Hew Zealand
mm
1,000
Chile
1,000
Netherlands
109
•
14,000
2,000
Argentina
2,000
100
Italy
12,000
Cuba
mm
1,000
France
1,000
—
1,000
Greece
mm
1,000
100
Mexico
• .
1,000
Panama
mm
•
1,000
Uruguay
mm
1,000
Poland and Danzig
mm
mm
1,000
Sweden
1,000
Yugoslavia
1,000
Norway
mm
mm
Canary Islands
1,000
mm
Rumania
1,000
100
Guatemala
m
100
Brazil
Union of Soviet
mm
100
Socialist Republics
m
100
Belgium
37,463
800,000
4,000,000
795,000
e
Country
of
Origin
y
-oOo-
TREASURY DEPARTMENT
W ashington
j FOR IMMEDIATE RELEASE,
T hursday, J u l y 15, 1943.
Press Sarviee
37-59
The B u reau o f C ustom s an n ounced to d a y p r e lim in a r y f i g u r e s show ing th e q u an I t i t i e s o f w heat and w heat f l o u r e n t e r e d , o r w ith d raw n from w areh o u se, f o r con^
I sum ption u n d e r th e im p o rt q u o ta s e s t a b l i s h e d in th e P r e s i d e n t 's p r o c la m a tio n o f
I'
| May 2 8 , 1941, a s m o d if ie d by th e P r e s i d e n t 's p r o c la m a tio n s o f A p r il 13, 1942, and
■
;
'
o
■
j A p ril 2 9 , 1943, f o r th e 12 m onths commencing May 2 9 , 1943, a s f o llo w s :
? Wheat f l o u r , s e m o lin a ,
c ru s h e d o r c ra c k e d w h eat,
: and s i m i l a r w heat n ro d u c ta
Im p o rts
ff
Im p o rts
May 29, 1943,
♦ E s ta b lis h e d 5 May 2 9 , 1943
to J u ly 3, 1943 ? .
Q uota
r t o J u l y ' 3 # 1943
WHEAT
C o untry
of
O r ig in
Ganada
China
Hungary
Hong Kong
Japan
U nited Kingdom
A u s tr a lia
Germany
S yria
Hew Z ealan d
C hile
N e th erlan d s
A rg en tin a
I ta ly
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and D anzig
Sweden
Y ugoslavia'
Norway
Canary I s la n d s
Rumania
Guatemala
B ra z il
Union o f S o v ie t
S o c i a l i s t R e p u b lic s
Belgium
E s ta b lis h e d
Q uota
(B u s h e ls )
(B u s h e ls )
(p o u n d s)
79 5 /0 0 0
7 9 5 ,0 0 0
—
*r
„
—
—
—
—
—
3 ,8 1 5 ,0 0 0
2 4 ,0 0 0
1 3 ,0 0 0
1 3 ,0 0 0
8,000
7 5 ,0 0 0
1,000
5 ,0 0 0
5 ,000
1,000
1,000
1,000
1 4 ,0 0 0
2 #.Q00
12,000
1 ,0 0 0
1,000
. 1,000
lio o o
1 ,000
1,000
MOO
1,000
1,000
1,000
-
100
-
100
100
rr
100
2 ,0 0 0
100
r1,000
r*
100
x
+*'
~
-
~T
—
—
—
—
_ .
-*
—
—
—
—
1,000
100
100
100
100
8 0 0 ,0 0 0
**
795 ,0 0 0
4 ,0 0 0 ,0 0 0
(P ounds)
3 7 ,4 6 3
\,
,
.J
1
,IL
1
.f
-
,,
. 4.
*•*
.,
3 7 ,4 6 3
•
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T uesday, f ttr a 1 5 , 19*13.
JJL.
/
'
P re s s S e rv ic e
No. 3 f-S 3 ?
■ V
<Lu **SLS,
D uring th e month o f (4ay~ 19^3, m arket t r a n s
a c tio n s in d i r e c t and g u a ra n te e d s e c u r i t i e s o f
th e Government f o r T re a su ry In v estm en t and o th e r
a c c o u n ts r e s u l t e d ip p e t s a le s o f
1 14
S e c r e ta r y M orgenthau announced to d a y .
7LRj 1t—6-o^
P r
3
~) -
6
o
m y 7, 19*3-
m .
to M L 0 .
BKU. 1
tn a iM tto M took plane In d ire st end f u n t t t a l i m r u
tie s of the Oovernnenti
Pnroheeee .........................
S o le s ................................
Sot S e is e ............
3gU,000
|
ll46.Oqg.OQO
$1145.768.000
wM—KHtw. MWieuS ewTsio.-mumpHiti t^ . mtfum
\
gym
Copy to;<Mr. Schwarz
I T ;H e m lfin g e r
Miss Sanford
m «s
m&m
.$gf4
■f
_____
Sorlag the ooath of .June the following w b t
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE
T hursday, J u ly 15, 19^3.
P re s s S e rv ic e
v
No, 37-60
D uring th e month o f June 19^3> m arket t r a n s a c tio n s in d i r e c t and g u a ra n te e d s e c u r i t i e s of
th e Government f o r T re a su ry in v e stm e n t and o th e r
a c c o u n ts r e s u l t e d in n e t s a le s of $ 1 * 4 - 5 , 000,
S e c r e ta r y M orgenthau announced to d a y .
~o0o~
3& S M .
!
- 3 -
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 u b s e q u e n t p u r c h a s e , and th e amount)
a c t u a l l y r e c e iv 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 in g th e ta x a b le
y e a r f o r w hich th e r e t u r n i s m ade, a s o r d in a r y g a in o r l o s s .
T re a s u ry D ep artm en t C i r c u l a r No. 4 1 8 , a s am ended, and t h i s n o ti c e , pre- 1
s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g o v e rn th e c o n d i tio n s o f t h e i r issu e .
C opies o f t h e c i r c u l a r may b e o b ta in e d from an y F e d e r a l R e se rv e Bank o r Branch.
R eserv e Banks and B ra n c h e s, f o llo w in g w hich p u b l i c announcem ent w i l l be made by thel:|
S e c r e t a r y o f th e T re a s u ry o f th e am ount and o r i c e ra n g e o f a c c e p te d b i d s .
Those
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T re a s u ry e x p r e s s ly r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any or I
a l l t e n d e r s , i n w hole o r i n p a r t , and h i s a c t i o n i n an y such r e s p e c t sh fall be finalJs|
S u b je c t to th e s e r e s e r v a t i o n s , te n d e r s f o r $ 1 0 0 ,0 0 0 o r l e s s from any one bidder at j
9 9 .9 0 5 e n te r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Payment o f accepted
t e n d e r s a t th e p r i c e s o f f e r e d m ust be made o r c o m p lete d a t th e F e d e r a l Reserve Bank!I
fill
i n cash o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s on
July 21, 1943______.
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l n o t hav e an y ex em p tio n , as such} ;j
and l o s s from th 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 re a s u ry b i l l s s h a l l n o t have any
s p e c i a l tr e a tm e n t, a s s u c h , u n d e r 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 te d .
The
b i l l s s h a l l be s u b j e c t to 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 is e ta x e s , whether!.
F e d e r a l o r S t a t e , b u t s h a l l be exem pt 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 th e p r i n c i p a l o r i n t e r e s t th e r e o f by anjr S t a t e , o r an y o f th e p o s s e s s io n s of
th e U n ite d S t a t e s , o r by any l o c a l t a x in g a u t h o r i t y .
F o r p u rp o s e s o f ta x a tio n the 1
am ount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U nited States!
s h a l l be c o n s id e r e d to b e i n t e r e s t .
Under S e c tio n s 42 and 117 (a ) ( l ) o f the
I n t e r n a l Revenue Code, a s amended by S e c tio n 115 o f th e R evenue A ct o f 1941, the
am ount o f d is 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 ld s h a l l n o t be considered j
to a c c ru e u n t i l such b i l l s s h a l l b e s o l d , redeem ed o r o th e r w is e d is p o s e d o f, and
such 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 a s c a p i t a l a s s e t s .
owner o f T re a s u ry b i l l s
A cco rd in g ly , the
( o t h e r th a n l i f e in s u r a n c e com panies) is s u e d hereunder
n eed in c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p ric e paid
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
F r id a y , J u l y 1 6 , 1943___________ .
The S e c r e t a r y o f th e T re a s u r y , b y t f i i s p u b li c n o t i c e , i n v i t e s ten d ers
fo r $ 1,000,000,000 , o r th e re a b o u ts, o f
92^-day Treasury b i l l s , to be issued
_
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r pro- i
v id e d .
The b i l l s o f t h i s s e r i e s w i l l b e d a te d
m a tu re
October 21, 1943
in te re s t.
July 21, 1943
, and w ill
, when th e f a c e am ount w i l l be p a y a b le w ith o u t
They w i l l be i s s u e d i n b e a r e r form o n ly , and i n d e n o m in a tio n s o f $1,0001
$ 5 , 000 , $ 10 , 000 , $ 100 , 000 , $ 500 , 0 0 0 , an d $ 1 , 000,000 ( m a t u r i t y v a l u e ) .
Tenders w i l l be re c e iv e d a t F ed eral Reserve Banks and Branches up to the;
c lo sin g hour, two o 'c lo c k p. m ., E astern War tim e,
Monday, July 19, 1943
T en d ers w i l l n o t be r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n .
, 1
Each tender |
m u st be f o r an ev en m u l t i p l e o f $ 1 , 000 , and th e p r i c e o f f e r e d m u st be expressed
on th e b a s i s o f 1 0 0 , w ith n o t more th a n t h r e e d e c im a ls , e . g . , 9 9 .9 2 5 .
may n o t b e u s e d .
Fractions I
I t i s u rg e d t h a t te n d e r s be made on th e p r i n t e d form s and for
w arded i n th e s p e c i a l en v elo p es- w hich w i l l be s u p p lie d by F e d e r a l R eserve Banks
o r B ran ch es 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 iv e d w ith q u t d e p o s it from in c o r p o r a te d banks and
1
t r u s t com panies and from r e s p o n s ib le and re c o g n iz e d d e a l e r s i n in v e stm e n t secun- 1
tie s .
T en d ers from o t h e r s m ust b e accom panied by paym ent o f 2 p e r c e n t tf the face!
am ount o f T re a s u ry b i l l s a p p l ie d f o r , u n l e s s th e te n d e r s a r e accom panied by an
e x p r e s s g u a r a n ty o f paym ent b y an i n c o r p o r a t e d bank o r t r u s t company.
Im 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 a t th e Federal
TREASURY DEPARTMENT
W ashington
, . ,
FOR RELEASE, MORNING NEWSPAPERS,
F rid a y , J u ly 16 , 19^ 3.
, /-15-& 3 .
. 7 ;, . . . \ ,,,
The S e c r e ta r y o f th e T re a su ry , by: th t's p u b lic n o t i c e /
i n v i t e s te n d e r s f o r $1 , 000, 000, 000, o r th e re a b o u ts o f 92-day
T re a su ry . b i l l s ,
to be Is s u e d on a d is c o u n t1'b a s is u n d er com
p e t i t i v e and f i x e d - p r i c e b id d in g as h e r e in a f te r ^ p r o v id e d , •
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 te d J u ly 21,.-’19^3, and
'
w i l l m ature O cto b er 21, 19^3* when th e fa c e amount w i l l be
p ay ab le w ith o u t i n t e r e s t .
They w i l l . b e ls‘sued "in b e a re r
form, ,o,niy,- and in d en o m in atio n s o f $1 , 000, $ 5 , 000,. fiq.,-00‘0,
.#100., 000, J500, 000, and $1, 000,000. ( m a tu rity V alue ) .
,,r,' ; T en d ers w i l l be r e c e iv e d a t F e d e ra l R eserve Banks and
Branches; up; to th e .c lo sin g h o u r, two o -c lo c k p . m’*, •E a s'te rtf
■ir^ar time.,-• Hoh'day, J u ly 19 , 19^3* Tender's- w i l l n o t be r e - l •
celved;. a t *t)ie T re a su ry D epartm ent , Washington-. Each -tender'
,, must--be;vfpr, an even m u ltip le o f # 1 , 0 0 0 , " a n d th e p ric e ' ■'* / V '
offered'-.,must be e x p re s se d on th e b a s is o f 100, w ith -n o t'm o re
th a n th r^ p ; d e c im a ls,'te ^ :g. , 99*925* F r a c tio n s may n o t beu se d . ,-,$t Is- urged t h a t t e n d e r s - be made on the-' p r in te d fo'rm's
and fo rw ard ed ; ,l.n- -.th e s p e c ia l, e n v e lo p e s’ w h ic h -W ill-b e -s u p p lie d
,-by; F e d e r a l R eserve Banks o r .-Branches on a p p l i c a t i o n 't h e r e f o r *
T en d e rs w i l l be re c e iv e d w ith o u t d e p o s it from in c o rp o
r a t e d rbanks and t r u s t com panies and from r e s p o n s ib le and
r e c o g n i z e d .d e a l e r s .i n In v estm en t- s e c u r i t i e s . ' T en d ers' from
o th e r s must be accom panied by paym ent of 2 p e rc e n t o f t h e - V
..face, amount of T re a s u r y . b i l l s a p p lie d f o r , u n le s s th e te n d e r s
a re accom panied by an, e x p re s s g u a ra n ty o f payment by- a n . i n
c o r p o r a te d bank o r t r u s t company.
Im m ed iately a f t e r th e c lo s in g h o u r, te n d e r s w i l l be
opened a t th e F e d e ra l R eserve Banks and B ran ch es, fo llo w in g
wpilch p u b lic announcement w i l l be made by th e S e c r e ta r y o f
th e T re a su ry o f th e amount and p r ic e range' of a c c e p te d b id s .
T hose s u b m ittin g te n d e r s w i l l be a d v ise d o f th e a c c e p ta 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 ta r y o f the- T re a su ry e x p re s s ly
r e s e r v e s th e 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 te n d e r s , in
w hole o r in p a r t , and h is a c tio n in any such r e s p e c t s h a l l be
fin a l.
S u b je c t to th e s e r e s e r v a t i o n s , te n d e r s f o r $100,000
37-61
(O v e r)
~ 2 ~
o r l e s s from any one b id d e r a t 99*9^5 e n te r e d on a f ix e d - p r ic e
b a s is w i l l be a o c e p te d in f u l l . Payment o f a c c e p te d te n d e rs
a t th e p r ic e s o f f e r e d must be made o r com pleted a t th e F ederal
R eserve Bank in ca sh o r o th e r Im m ediately a v a ila b le funds on
'J u ly 21, 19*1-3.
. ’ *** v**
The income d e riv e d from T re a su ry b i l l s , w hether i n t e r e s t
o r g a in from th e s a le o r o th e r d i s p o s i t i o n of* th e b i l l s , sh a ll
n o t have any -exem ption, as such, and lo s s from th e s a le or
o th e r d i s p o s i t i o n o f T re a su ry b i l l s s h a l l n o t have any sp e c ia l
tr e a tm e n t, a s such, u n d er F e d e ra l ta x A cts now o r h e r e a f t e r
e n a c te d . The b i l l s s h a l l be s u b je c t to e s t a t e , in h e r ita n c e ,
g i f t , o r o th e r e x c is e ta x e s , w h eth er F e d e ra l o r S ta te , b u t
s h a l l be exempt from a l l ta x a ti o n now o r h e r e a f t e r Imposed on
th e p r i n c i p a l o r i n t e r e s t th e r e o f by any S ta te , o r any o f the
p o s s e s s io n s o f th e U n ite d S t a t e s , o r by any lo c a l ta x in g
a u t h o r i t y . For p u rp o se s o f ta x a ti o n th e amount o f d isc o u n t
a t w hich T re a su ry b i l l s a re o r i g i n a l l y s o ld by th e U n ited
S ta te s s h a l l be c o n s id e re d to be i n t e r e s t . Under S e c tio n s 42
and 117 ( a ) (1 ) o f th e I n t e r n a l Revenue Code, as amended by
S e c tio n 115 o f th e Revenue Act o f 19^1, th e amount o f discount
a t which b i l l s is s u e d h e re u n d e r a re s o ld s h a l l n o t be con
s id e r e d to a c c ru e u n t i l such b i l l s s h a l l be s o ld , redeemed or
o th e rw is e d is p o s e d o f , and such b i l l s a r e ex clu d ed from con
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 cc o rd in g ly , th e owner of Treas
u ry b i l l s ( o th e r th a n l i f e In su ra n c e com panies) is s u e d h e re - |
u n d er need in c lu d e in h is income ta x r e t u r n o n ly th e d i f f e r
ence betw een th e p r ic e p a id f o r such b i l l s , w h eth er on o rig in a l
is s u e o r on su b se q u e n t p u rc h a s e , and th e amount a c tu a l ly r e
c e iv e d e i t h e r upon s a le o r red em p tio n a t m a tu rity d u rin g the
ta x a b le y e a r f o r which th e r e t u r n i s made, as o rd in a ry gain of
lo s s .
T re a s u ry D epartm ent C i r c u la r No. *1-16, as amended, and .
t h i s n o t i c e , p r e s c r ib e th e term s o f th e T re a su ry b i l l s and
govern th e c o n d itio n s o f t h e i r is s u e . C opies of th e c ir c u la r
may be o b ta in e d , from any F e d e ra l R eserve Bank o r B ranch.
—0O0—
SUPPLEM
ENTTONEW
SRELEASEONPENNSYLVANIA
The Vice Chairman for Pennsylvania War Finance Committee "will be
Mr. Robert H. McClintic of Pittsburgh, Assistant to the President
the Koppers Coke Company of Pittsburgh. Born1901 in Pittsburgh, he
is a director of the Western Pennsylvania Hospital, and headed the recent
CommunityFund drive in the city.
h^V
vC\.
B f P
w
FOR IMMEDIATE RELEASE
July X i9 1943
WASHINGTON, D. C. - Secretary Mergenthau announced today the
appointment of Walter Easton of Milvaakee as State Chairman of the War
^
Finance Committee for Wisconsin,
o
Nr* Easton, a native of Milvaakee, has heen President of the
T
'‘ V
£
First Wisconsin National Bank of Milvaakee since 1925* He attended
the Milvaakee University School and Colver Military Academy, Nr* Castes
v>
enjoys high prominence in state civic affairs,
/^J
The Executive Manager of the nev committee .w ill H Harold F,
Dickens, A graduate e£ the University of Wisconsin in 1916, The, served
in the last var as First Lieutenant, Field A rtillery, with the A*B,F,
After a short period of lav practice, Mr, Dickens Became connected
vith the investment Business,
For a number of years prior to joining
Treasury vork, he vas Resident Manager for E, H* Rollins and Sons,
Mr, Dickens vas Regional Manager for the Victory Pond Committee during
the First and Second War Loan Drives,
Croat credit for the good War Bond record in Wisconsin must
Be given to Frank' ' tKuhl, Collector of Internal Revenue and former w
War
Savings Staff Administrates; and to Mr* (Diaries E» Broughton of the
. 0 SheBoygan Press, former State Chairman,
Mr, Euhl w ill retire from
M/ RCtiTe Wax Bend work to dsrote his tine te the increasing duties of
the Collectorship of Internal Beronue. ( J j
v
AJ>
V ^ - \ / 0 y t-T
l
^ o l r
)
2
The appointment of an additional member of the Pennsylvania War Finance
Committee was also announced today by the Secretary*
The new member is Bobert
H. McClintic of Pittsburgh who w ill serve as Vice Chairman of the Committee.
Mr, McClintic is Assistant to the President of the Stoppers Coke Company
and a director of the Western Pennsylvania Hospital.
He has participated actively
in civic affairs in Pittsburgh and recently headed the Community Fund drive there.
dillon
V '
Secretary Morgenthan announced today the appointment of Uhl ter
Hasten as State Chairman and Harold ?. Dickens as Executive Manager of the newly
created War Finance Committee for Wisconsin. Both Mr, Hasten and Mr. Dickens are
residents of Milwaukee.
Bat new committee merges the former War Savings and Victory
Fund Committees and w ill direct the Baird War loan Drive, starting September 9,
in the state as well as the continuing sale of Series 3, F and 0 War Bonds.
Mr. Hasten has since 1925 been President of the First Wisconsin
National Bank of Milwaukee. He attended the Milwaukee University School and Culvsr
Military Academy. *or many years Mr. Hasten has been prominently identified with
various civic a ctiv ities throughout the state.
Mr. Dickens formerly served as Regional Manager for the Victory
Fund Committee during the First and Second War loan Drives. He graduated from the
University of Wisconsin in 1916, and during the la st war served in the A.B.F. as
First lieutenant in the FiBld A rtillery.
For a number of years he was associated
with ika 3. H. Hollins and Sons, investment bankers, as resident manager in Milwaukee.
Frank Huhl former War Savings Staff Administrator and Charles
3. Broughtoh former State Chairman have retired from active participation in the
state War Bond program. Mr. Huhl is Collector of Internal Hevenue for Wisconsin
<
and Mr. Broughton is Bdltor of the Sheboygan Press.
Secretary MorgenthauS^mpMrtWf?V>* the former Chairman and
State Administrator oeb the splendid War Bond record made tMrittNNMMfaa under their
leadership^ ^Tince May 1, 1941, sales of War Bonds in Wisconsin have aggregated
$374,108,000, while 727 firms out of the Statels 766 firms employing 100 or
i
more persons, now have Payroll Savings Plans in operation.
ill
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
S a tu rd a y , J u ly 1 7 , 1943.
P re s s S e rv ic e
No., 37-62
S e c r e ta r y M orgenthau announced to d ay th e ap pointm ent o f
W a lte r H asten as S ta te Chairman and H arold F. D ickens as
E x e c u tiv e Manage? o f th e newly c r e a te d War F in an ce Committee
f o r W iscon sin ,.
Both Mr, H asten and Mr, D'ickens a r e r e s i d e n t s
o f M ilwaukee.
to r v
“ e r ?,e? ^he fo rm er War S avings and V ic S t a r t i n p d= ! e n t ^ h ^ l *?*
d l f eo t th e T hlrfi W a rLoan D rive
ssaxe
a le 01
o f ^S ef rpieos vE,6VF 'and 0 War s Bonds.
t a t e as wel l as th e c o n tin u in g
W i«nnnoinKH8^?n h? 8- s l ,n oe 1925 been P r e s id e n t o f th e F i r s t
N a tio n a l
o f M ilwaukee, Ke a tte n d e d th e
minv v e a rs Uy r VeK » ^ y Swh° ° i and C ulver M i l ita r y Academy. For
v s n L n ! ^ f „ f r ' nK? ? t f ? , ha8 been p ro m in e n tly i d e n t i f i e d w ith
v a rio u s c i v i c a c t i v i t i e s th ro u g h o u t th e s t a t e r
V
u n d krn™
m ftfI1! I’id yu rin
f egrv fth^ e aaF iReSlo
n a I Second
Manager
th e
v ilc
c ttoo rv
r y'FFund
Committee
r s t and
WarfoV
Loan
1916 andHdi1f i ’ndU? h eai f r 2ra th e U n lv e rs l t y o f W isconsin In
d u rin g th e l a s t war se rv e d in th e A.EhF. as F i r s t
w4s asso c a t e d ^ ei - ^ 2l d „ArD
WH er^
a number o f y e a rs he
ee rr ss , as
«= r e s lo e n lt l tmbanagerH' inRol:Ll
na
and
Sons,
in v e stm e n t bankM ilwaukee,
C h
S
Mr
Mr‘
n r,
a rn e l
War Savings S t a f f A d m in is tra to r, and
1® " ' 'c r °u g h to n , fo rm er S ta te Chairm an, have r e t i r e d
Kuhi 1 P ’- r t l o l p a t i o n In th e s t a t e War Bond program .
B
r o L h t o n °I hs ev
f °r f o £n^
a l Revenue P froe rs s ,W isconsin and
B roughton
Efl?
d ito
f th er n Sheboygan
A d m ln is tra ? o ryf n r f h » th a i PJ B 88d th e fo rm er Chairman and g ta t.
s t a t e under
th e s p le n d id War Bond re c o rd made In th e
19^1 sales !f ®^r. B°
b r S^ P,’„POlntlng out that ®inoe M
ay 1,
£ de ln Wls0° n ain have a g g re g a te d
P lovinK Sioo°A r m h e 727 flrm s ° u t o f th e 3 t a t e ' s 766 firm s emin o p e r a tio n
P e rso n s, now have P a y r o ll S avings P la n s
The appointm ent o f an a d d i tio n a l member o f th e P en n sy l
v a n ia War F in an ce Committee was a lso announced to d a y by th e
S e c r e ta r y . The new member I s R obert H, M c C lin tia o f
P itts b u r g h who w i l l s e rv e as V ice Chairman o f th e Com m ittee.
Mr. M c C lln tic i s A s s is ta n t to th e P r e s id e n t o f th e
K oppers Coke Company and a d i r e c t o r o f th e W estern P en n sy l
v a n ia H o s p ita l. He has p a r t i c i p a t e d a c t i v e l y in c i v i c a f
f a i r s in P itts b u r g h and r e c e n t l y headed th e Community Fund
d r iv e t h e r e .
VaA ^ V
’fe t- t
f&^-V
0
Mr, John Tompkins
10 Forsyth Street Building
Atlanta, Georgia
Mr. Alden W
. Pool
1630 Wazee Street
Denver, Colorado
Mr. R. F. Going
222 West North BankDrive
Chicago, Illinois
Mr. Hamilton Merton
Regional Property Officer
6th Floor, Porter Building
Kansas City, Missouri
Mr. F. 3. Alhrecht
76 Ninth Avenue
NewYorkjrll, NewYork
Mr. Chas. H. Peterson
Regional Property Officer
718 Alaska Building
Seattle^ 4, Washington
Mr. Thos C. Stephens
335 Fell Street
San Francisco, Calif.
Mr. F. J. Dowd
235 West 12th Street
Cincinnati, Ohio
Mr. Donald Mackay
Park Square Building
Boston, Massachusetts
Mr. Ross N. Hanson
Regional Property Officer
609 Neil P. AndersonBldg.
Fort Worth, Texas
Mr. LynnP. Rutter,
Building F, Munoz Rivera Park
San Juan, Puertcfeico.
''9CtyYt- *■*
Iaj <f~
July 19, 1943
fo r immediate release
y v o ,
The Procurement Division nqpwrted'
tS
notifying ta^-supporte^2fe^& §es^and war contractors throughout
the nation of the immediate av a ila b ility fo r sale of ten m illion
le c to r
dollars worth of/federal/surplus (property
5/
The Division said th is property was located
>and th a t i t consisteS^jof construction equipment, laboratory
and hospital equipment, automotive equipment and p a rts, ta ii^ tta d r
educational equipment and f a c i liti e s , shop maintenance eauipment
and a wide variety of miscellaneous m aterial.
The Division also said th a ^ aS u h e property of £ede
agencies in liquidation, such as>m 4«, is made available, the
figure of ten m illion dollars w ill grow much larg er.
)irector
Made explained t hat
under the terms of Executive 0rden/ 9 2 3 ^ the Division/was\ f i r s t s
transferring surplus property to mar agencies e»oquiPi iig
He said th at since February^JProffivnoment had turned over more
than nine m illion dollaitrlyorth of c r itic a lly needed items to
the Army, Navy,Maritime Commission and other war agencies.
HeametiGMIHBbA t e r such needs are f ille d , remaining
property w ill be available fo r sale to S tates, Counties, C ities,
M unicipalities and to the general public.
Mr. Mack emphasized th at war contractors are equally
elig ib le with tax-supported authorities to bid fo r surplus stocks
as soon as jfederalyjnued.il -ai'u fjLiLUd, and advised interested parties
desiring specific/lnform ation as to what property was available
to contact th e n e a re s t Regional Brocurement O fficer.
Remaining surplus property, Mr. Mack explained, would
then be offered to the general public through sealed bid sales,
with award going to the highest e lig ib le bidder.
/
/
The Division* s objective in placing surplus stocks back
ito operation — stocks beyond federal needs — is to insure the
^maximum u tiliz a tio n of a l l supplies toward assistin g the war effort.
l
J@Ls
\
TREASURY DEPARTMENT
Procurem ent D iv isio n
W ashington
FOR IMMEDIATE RELEASE,
Monday, J u ly 19, 1 9 ^ ,
P re s s S e rv ic e
No. 37-63
The Procurem ent D iv is io n i s n o tif y in g ta x -s u p p o r te d S ta te
and lo c a l a u t h o r i t i e s and war c o n tr a c to r s th ro u g h o u t th e n a tio n
o f th e im m ediate a v a i l a b i l i t y f o r s a le o f te n m illio n d o l l a r s
w orth o f s u rp lu s F e d e ra l p r o p e r ty , D ir e c to r G ilf to n E, Mack
s a id to d a y .
The D iv is io n s a id t h i s p r o p e r ty was lo c a te d in a l l p a r t s
o f th e c o u n try and t h a t I t c o n s is ts o f c o n s tr u c tio n equipm ent
la b o r a to r y and h o s p i t a l equipm ent, au to m o tiv e equipm ent and
e d u c a tio n a l equipm ent and f a c i l i t i e s , shop m aintenance
equipm ent and a wide v a r i e t y of m is c e lla n e o u s m a te r ia l .
The D iv isio n a ls o s a id th a t as th e p ro p e rty of F e d e ra l
«n U 2u i d a t ^ n > su ch as th e N a tio n a l Youth A dm inis- '
'° n ’ i s
a v a ll abl e ; th e f ig u r e o f te n m illio n d o l l a r s
w i l l grow much l a r g e r .
Mack e x p la in e d t h a t u n d er th e term s o f E x ec u tiv e
O rder 9235 th e ^ D iv is io n f i r s t was t r a n s f e r r i n g s u rp lu s prop~
e r ty to _ F e d e ra l war a g e n c ie s w hich have a need f o r th e m ater i a l . Re s a id t h a t s in c e F eb ru ary , th e D iv is io n had tu rn e d
? t ! ! L m2r e ^ h a A n in e J m illio n d o l l a r s w orth o f c r i t i c a l l y needed
ite m s to th e Army, Navy, M aritim e Commission and o th e r war
a g e n c ie s .
,
A££ei\ , 8UQh needs a r e f i l l e d , rem a in in g p ro p e rty w i l l be
*£ f 0 r 8 a l,e t0 s t a t e B ’ C o u n tie s, C i t i e s , M u n ic ip a litie s
and to th e g e n e ra l p u b lic .
Mr, Mack em phasized t h a t war c o n t r a c to r s a re e q u a lly
e l i g i b l e w ith ta x - s u p p o r te d a u t h o r i t i e s to b id f o r s u rp lu s
so °? as Feder a l. re q u ire m e n ts a re s a t i s f i e d , and ad f s ?d i n t e r e s t e d p a r t i e s d e s ir i n g s p e c i f i c In fo rm a tio n as to
wnat p r o p e r ty was a v a ila b le to c o n ta c t th e n e a r e s t R eg io n al
P rocurem ent O f f ic e r ,
B
2
Remaining s u r p l u s p r o p e r t y , Mr. Mack e x p l a in e d , would then
be o f f e r e d to t h e g e n e r a l p u b l i c th ro u g h s e a l e d b i d s a l e s , w ith
award going to t h e h i g h e s t e l i g i b l e b i d d e r .
The D i v i s i o n ' s o b j e c t i v e in p l a c i n g s u r p l u s sto c k s back
i n t o o p e r a t i o n -*•- s to c k s beyond F e d e r a l needs **-- i s to I n s u r e
th e maximum u t i l i z a t i o n of a l l s u p p l i e s toward a s s i s t i n g th e
war e f f o r t .
The Procurement D i v i s i o n r e p r e s e n t a t i v e s who w i l l h andle
th e s u r p l u s p r o p e r t y program in t h e f i e l d ;
Mr. John Tompkins
10 F o r s y t h S t r e e t B u i l d i n g
A t l a n t a , G eorgia
Mr. Alden W. Pool
1630 Wazee S t r e e t
Denver, Colorado
Mr. R. F, Going
222 West North Bank Drive
Chicago, I l l i n o i s
Mr. Hamilton Morton
R egional P r o p e r t y O f f i c e r
6t h F l o o r , P o r t e r B u i l d i n g
Kansas C i ty , M issouri
Mr, FvrS. A lb r e c h t
76 Ninth Avenue
New York 11, New York
Mr, Chas. H, P e t e r s o n
R egional P r o p e r t y O f f i c e r
71S Alaska B u i ld in g
S e a t t l e ty, Washington
Mr. Thos. C, Stephens
335 F e l l S t r e e t
San F r a n c i s c o , C a l i f ,
Mr. E. J . Dowd
235 West 12th S t r e e t
C i n c i n n a t i , Ohio
Mr. Donald Mackay
P ark Square B u i l d i n g
Boston, M a s s a c h u s e t ts
Mr, Ross N. Hanson
R egional P r o p e r t y O f f i c e r
609 N e il P. Anderson Bldg,
F o r t Worth, Texas
Mr. Lynn P, R u t t e r
B u i l d i n g F, Munoz Riv-era Park
San Juan, P u e r to Rico
0
O0 -
w W so vfMtijj ym . P I M ^
im
3ss
y
W y
ft- * ™
H ^ h
FOR IMMEDIATE RELEASE
J T A ./V W
Afiftfopoc « $
nas
The Procurement D ivision today
^veral m illio n pairs o f 11d istressed ” shoes, unsalable
to the American public under ration in g, fo r d istrib u tio n
overseas to c iv ilia n war victim s by the O ffice o f Foreign
R e lie f (^ R eh a b ilita tio n Operations*
Explaining th at d is tr e s s e d ” stock i s a trade term
given merchandise which i s not s e llin g a t a normal r a te , Procurement
D irector C lifto n E* Mack said th at the p u b lic, in purchasing
shoes under ration in g, had passed up many sty le s and grades which
were thus l e f t on the manufacturers*, jobber?? and r e ta ile r s1 shelves.
Such shoes, o f the kinds and types su ita b le fo r r e lie f
needs, w ill be included in the government*s purchases. Although
they are unacceptable by present standards o f American shoe buyers^
they should give adequate service to countless men, women and
children in d ista n t theal^j/s o f war who might otherwise go without
shoes a lto g eth er.
Only case lo ts w ill be purchased by the Procurement
D iv isio n , a t pfcices which Mr. Mack said ”r e fle c t present lack
o f in te r e st in such sh o es.”
When procured from stocks a l l over the country, the shoes
w ill be held in storage fo r eventual shipment and use overseas
by the r e lie f o ffic e .
TREASURY DEPARTMENT
Procurement D i v i s i o n
W a sh in g to n .
FOR IMMEDIATE RELEASE,
Monday, J u l y 1^, 19^2 „
P r e s s S e r v ic e
No, 37-6^
The Procurement D i v i s i o n today announced I t has begun th e
p u rc h a s e o f s e v e r a l m i l l i o n p a i r s o f ’’d i s t r e s s e d ” shoes, un
s a l a b l e t o t h e American p u b l i c under r a t i o n i n g , f o r d i s t r i b u
t i o n o v e r s e a s to c i v i l i a n war v i c t i m s by th e .O ffice of F o reign R e l i e f and R e h a b i l i t a t i o n O p e r a t i o n s ,
E x p l a i n i n g t h a t ’’d i s t r e s s e d ” s t o c k i s a t r a d e term given
m erchandise which i s not s e l l i n g a t a normal r a t e , P r o c u r e
ment D i r e c t o r C l i f t o n E. Mack s a i d t h a t th e p u b l i c , In p u r
c h a s in g shoes u nder r a t i o n i n g , had p assed up many s t y l e s and
g r a d e s which were t h u s l e f t on t h e m a n u f a c tu r e r s ’ , j o b b e r s ’
and r e t a i l e r s ’ s h e l v e s .
Such shoes, o f t h e k inds and ty p e s s u i t a b l e f o r r e l i e f
needs, w i l l be in c l u d e d i n t h e Government's purchases* Al
though they a r e u n a c c e p t a b l e by p r e s e n t s t a n d a r d s o f American
shoe b u y e r s , they should give adequate s e r v i c e to c o u n t l e s s
men, women and c h i l d r e n in d i s t a n t t h e a t e r s of war who might
o th e r w is e go w ith o u t shoes a l t o g e t h e r .
Only case l o t s w i l l be purchased by th e Procurement D i v i
s i o n , a t p r i c e s which Mr, Mack s a i d '’r e f l e c t p r e s e n t l a c k o f
i n t e r e s t in such s h o e s , ”
When procu red from sto c k s a l l over t h e c o u n try , t h e shoes
w i l l be h e l d in s t o r a g e f o r e v e n tu a l shipment and use o v e r s e a s
by th e r e l i e f o f f i c e ,
- 0O0-
}
%
fESASOHf i f i W f
Washington
TOR RELEASE, M I S RZR3PAPSSS,
Tneaday. July 20, 1943.
<Hig
1
Pr*“ S*rrtce
1
o f th s T rsflw ry amwonccd l& st tvwning that, tii® tender® for
$ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or thereabout®, o f 92-day trea su ry b i l l s to be dated July 21 and to
I
nature October 2 1 , 1943, which were o ffe r e d ©a Ju ly I d , 1 943, were opened a t the
Federal Beserve Banks on J u ly 1 9 .
th e d e t a i l s o f t h i s is s u e are as fo llo w s !
f o t a l a p p lie d fo r
T o ta l accepted
$1,520,429,000
1,003,796,000 (in c lu d e s $ 7 0 ,6 3 8 ,0 0 0 entered on a fixed-
p r ic e b a s is a t 99.905 and accepted in fell)
Bangs o f accepted b id e t
H igh
Low
Average p r ic e
1
(61 p ercen t o f th e saount b id fo r a t th e low p r ic e was accepted)
Federal Reaerve
Bank
Boston
Hew York
P h ila d e lp h ia
C leveland
Richmond
A tlan ta
Chicago
S t . L ouis
M inneapolis
, Kansas C ity
B a lia s
San F rancisco
TOTAL
Total
T otal
A pplied f o r
Accosted
$
$
77,070,000
887.679.000
56, 900,000
68, 505,000
29.903.000
24.410.000
135.937.000
39.255.000
28.365.000
40.114.000
17.245.000
115.046.000
$1,520,429,000
58,102,000
490,431.000
45.162.000
63.297.000
28.226.000
23.429.000
94.849.000
23.382.000
20.542.000
37.132.000
16,931,«»
1O2.3U.0SS
$1,003,796,000
<
TREASURY BEPARUOST
Washington
Press Sendee
FOR mSASS, MOHHXMG HEWSPAPERS,
Tuesday. Ju ly 20, 1943*
Tfee S ecretary o f th e Treasury announced l a s t evening th a t th e tend ers for
$1,000,000,000, or th erea b o u ts, o f 92-day Treasury b i l l s to b e dated duly 21 and to
mature October 21, 1943, which were o ffe r e d on du ly 1 6 , 1943, were opened a t the
•btffli
jstill
if we
Federal Reserve Banks on duly 1 9.
The d e t a i l s o f t h is is s u e are a s fo llo w s :
Total applied for —$1,520,429,000
Total accepted
- 1,003,796,000 (includes $70,633,000 entered on a fixe*.
p r ic e b a s is a t 99.905 and accepted in M l]
*
Range of accepted bids:
High
Low
Average price
- 99.910 E quivalent r a te o f d isco u n t approx. 0. 352$ P«r &naa«
- 99.904
*
* •
•
*
©*374f *
. 99.905
*
* *
«
*
&.#$< *
(61 p ercen t o f th e amount b id fo r a t th e low p r ic e was accepted)
Total
Applied fo r
Federal Reserve
Sank
77.070.000
387.679.000
Boston
Bew York
Philadelphia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco
.
68.505.000
56 900.000
29.903.000
2 4 .4 1 0 .0 0 0
TOTAL
d
Total
Accepted
58,102,000
490,431*000
45,162,000
63.297.000
.
2 8 226.000
23 . 429.000
135.937.000
39.255.000
28.365.000
40.114.000
17.245.000
115.046.000
94.849.000
23.382.000
20.542.000
37.132.000
16.931.000
102.313,000
$1,520,429,000
♦1,003,796,000
|ri
iladel
TREASURY DEPARTMENT
W a sh in g to n
FOR RELEASE, MORNING- NEWSPAPERS,
T uesday* J u l y 20, 1943*
P re ss S e rv ice
■No. 37-65
The S e c r e t a r y o f t h e T r e a s u r y a n n o u n c e d l a s t e v e n in g t h a t
t h e t e n d e r s f o r $1,000*000., 000, o r t h e r e a b o u t s , o f 9 2 - day T r e a s
u r y b i l l s t o be d a t e d J u l y 21 a n d t o m a tu r e O c t o b e r 2 1 , 1 9 4 3 ,
w h ic h w ere o f f e r e d on J u l y 16, 1 9 4 3 , w e re op en ed a t t h e F e d e r a l
R e s e r v e Banks on J u l y 1 9 .
'
The d e t a i l s o f t h i s i s s u e a r e a s f o l l o w s :
T o t a l a p p l i e d f o r - $ > 1 ,5 2 0 ,4 2 9 ,0 0 0
T o ta l a cc ep ted
-* 1 , 0 0 3 , 7 9 6 , 0 0 0 ( i n c l u d e s $ 7 0 , 6 3 8 ,0 0 0 e n
t e r e d on a f i x e d - p r i c e
b a s i s a t 9 9 . 9 0 5 and a c
c e p te d in f u l l )
Range o f a c c e p t e d b i d s ?
H ig h
low
'
A v e ra g e
p ric e
- 9 9 .9 1 0 E q u i v a l e n t r a t e o f d i s c o u n t a p p ro x * 0*352^
p e r annum
- 9,9.904
M
#”
,f
n
a p p ro x * 0.376%
s
■ p e r annum
9 9 .9 0 5
n
”
w
w
a p p ro x * 0*374%
p e r annum
(61 p e r c e n t o f t h e am ount 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 )
F e d e ra l R eserv e
Bank
T o ta l
A p p lied F or
T o ta l
A c c e p te d
B o s to n
Hew Y ork
P h ila d e lp h ia * *
C le v e la n d
Richmond
A tla n ta
C h ica g o
S t . L o u is
M in n e a p o lis,
K ansas C i t y
D a lla s
San F r a n c i s c o
$
$
' TOTAL
7 7 ,0 7 0 ,0 0 0
8 8 7 ,6 7 9 ,0 0 0
5 8 ,1 0 2 ,0 0 0
4 9 0 .4 3 1 .0 0 0
5 6 .9 0 0 .0 0 0
4 5 ,1 6 2 ,0 0 0
6 8 .5 0 5 .0 0 0
2 9 ,9 0 3 ,0 0 0
6 3 .2 9 7 .0 0 0
2 8 . 2 2 6 .0 0 0
2 3 .4 2 9 .0 0 0
9 4 ,8 4 9 ,0 0 0 2 3 . 382.000
2 0 , 542,000
3 7 .1 3 2 .0 0 0
2 4 . 4 1 0 .0 0 0
1 3 5 .9 3 7 .0 0 0
3 9 .2 5 5 .0 0 0
2 8 365.000
4 0 .1 1 4 .0 0 0
1 7 .2 4 5 .0 0 0
.
1 6 .9 3 1 .0 0 0
1 1 5 .0 4 6 .0 0 0
1 0 2 .3 1 3 .0 0 0
$ 1 ,5 2 0 ,4 2 9 ,0 0 0
$ 1 ,0 0 3 ,7 9 6 ,0 0 5
-0O 0-
y
2
The S e c r e ta r y has ask ed th e c o l l e c t o r s to g iv e ad v ice
and a s s i s t a n c e t o th e chairm en o f th e new War F in an ce Com
m itte e s in s e t t i n g up t h e i r o r g a n iz a tio n s . Upon th e i n
s i s t e n c e o f th e new chairm en , c o l l e c t o r s who have been
s e rv in g a s a d m in is tr a to r s in many o f t h e s t a t e s w i l l f o r a
tim e a c t in an a d v is o ry c a p a c ity a s V ice-C hairm en o f S ta te
C om m ittees. O tn ers w i l l be o f g r e a t a s s i s t a n c e d u rin g th e
t r a n s f e r o f a u t h o r i t y to th e new S t a t e Chairmen and t h e i r
s ta ffs •
F orm ation o f new War F in an ce Com m ittees i n a l l S ta te s
i s p r o g re s s in g and th e y a r e r a p i d l y ta k in g o v e r th e
r e s p o n s i b i l i t i e s o f th e fo rm e r S ta te War S av in g s S ta f f s
and t h e War F in a n c e Com m ittees w hich were s e t up f o r th e
Second War Loan D riv e in A p r i l. A ll o f th e new S ta te
o r g a n iz a tio n s w i l l be f u n c tio n in g f u l l y w ith in a few days
and in a l l S t a t e s p r e p a r a tio n s a r e b ein g made f o r th e
T h ird War Loan D riv e w hich b eg in s Septem ber 9*
- 0O0 -
TREASURY DEPARTMEKT
Washington
FOR RELEASE
P re s s S e r v i c e
No-
3 7 - 6 4
S e c r e t a r y Morgenthau announced t o d a y th a t; w ith t h e
s ’—
f o r m a tio n of War Finance Committees i n each o f t h eK&8J
S t a t e s and t h e D i s t r i c t o f Columbia^twenty-one C o l l e c
t o r s o f I n t e r n a l Revenue and two C o l l e c t o r s o f Customs^
who have been a c t i n g as S t a t e War Savings A d m in is tr a to r s
w i l l r e t i r e from t h e i r p o s t s i n t h e war f i n a n c e program.
The c o l l e c t o r s have s e r v e d s i n c e t h e i n a u g u r a t i o n o f th e
War Bond prograimwhen th e y were as k ed t o t a k e on th e s e
a c t i v i t i e s in ad d itio n to t h e i r reg u lar d u ties.
The S e c r e t a r y p r a i s e d t h e s e r v i c e s which t h e s e f u l l
t i m e Government employees have r e n d e r e d s i n c e t h e i n
c e p t i o n o f t h e War Bond program i n s e t t i n g up o r g a n i z a
t i o n s i n t h e i r s t a t e s t o promote t h e s a l e o f bonds.
ffThe a d m i n i s t r a t i v e t a l e n t d i s p l a y e d by t h e s e c o l
l e c t o r s i n o r g a n i z i n g t h e S t a t e War Savings S t a f f s has
been o f g r e a t v a l u e i n t h e War Bond p r o g r a m ,” t h e
S e c r e t a r y s a i d . " L a r g e ly th r o u g h t h e e f f o r t s o f t h e
s t a t e o r g a n i z a t i o n s War Bonds a r e now h e l d by more than
f i f t y m i l l i o n p e r s o n s i n t h e U n i t e d S t a t e s and monthly
s a l e s have, i n r e c e n t m onths a v e ra g e d more th a n a b i l
l i o n d o l l a r s . The s e r v i c e t h e c o l l e c t o r s have rendered
has been i n a d d i t i o n to t h e i r r e g u l a r heavy r e s p o n
s i b i l i t i e s as C o l l e c t o r s o f I n t e r n a l Revenue and Col
l e c t o r s o f Customs. These p u b l i c employees have uns t i n t i n g l y expended t h e i r own time and have been la rg e ly
r e s p o n s i b l e f o r b r i n g i n g t o g e t h e r i n each o f t h e i r States
t h e a rm ie s o f v o l u n t e e r s who have worked u n d e r t h e i r
l e a d e r s h i p t o make t h e c o n t i n u i n g War F inance promotion
e f f o r t so s u c c e s s f u l . ”
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, J u l y 21, 19^ 3.
P r e s s S e r v ic e
No. 37-66
S e c r e t a r y Morgenthau announced today t h a t , w ith th e f o r
mation o f War Finance Committees in each o f t h e f o r t y - e i g h t
S t a t e s and th e D i s t r i c t o f Columbia, tw en ty -o n e C o l l e c t o r s o f
I n t e r n a l Revenue and two C o l l e c t o r s o f Customs who have been
a c t i n g as S t a t e War Savings A d m i n i s t r a t o r s w i l l r e t i r e from
t h e i r p o s t s in th e war f i n a n c e program.
The c o l l e c t o r s have
served s i n c e t h e i n a u g u r a t i o n of t h e War Bond program, when
th ey were asked to t a k e on t h e s e a c t i v i t i e s i n a d d i t i o n t o
th e ir regular duties.
The S e c r e t a r y p r a i s e d th e s e r v i c e s which t h e s e f u l l - t i m e
Government employees have r e n d e r e d s in c e th e I n c e p t i o n o f the
War Bond program i n s e t t i n g up o r g a n i z a t i o n s i n t h e i r s t a t e s
to promote the s a l e of bonds,
’’The a d m i n i s t r a t i v e t a l e n t d i s p l a y e d by t h e s e c o l l e c t o r s
in o r g a n i z i n g th e S t a t e War Savings S t a f f s has been of g r e a t
valu e in the. War Bond p r o g r a m ,’* th e S e c r e t a r y s a i d . ’’L a r g e ly
through t h e e f f o r t s o f th e s t a t e o r g a n i z a t i o n s War Bonds are
now h e l d by more th a n f i f t y m i l l i o n p e r so n s i n th e U nited
S t a t e s and monthly s a l e s have, in r e c e n t months, averaged more
than a b i l l i o n d o l l a r s . The s e r v i c e t h e c o l l e c t o r s have r e n
dered has been in a d d i t i o n to t h e i r r e g u l a r heavy r e s p o n s i
b i l i t i e s as C o l l e c t o r s o f I n t e r n a l Revenue and C o l l e c t o r s o f
Customs, These p u b l i c employees have u n s t i n t i n g l y expended
t h e i r own tim e and have been l a r g e l y r e s p o n s i b l e f o r b r i n g i n g
t o g e t h e r in each o f t h e i r S t a t e s th e arm ies of v o l u n t e e r s
who have worked u n d er t h e i r l e a d e r s h i p t o make t h e c o n t i n u i n g
War Finance promotion e f f o r t so s u c c e s s f u l , ”
The S e c r e t a r y has asked th e c o l l e c t o r s to giv e advice
and a s s i s t a n c e to th e chairmen of t h e new War Finance Com
m i t t e e s i n s e t t i n g up t h e i r o r g a n i z a t i o n s . Upon the i n s i s t
ence of th e new chairmen, c o l l e c t o r s who have been s e r v i n g as
a d m i n i s t r a t o r s i n many o f th e s t a t e s w i l l f o r a time a c t in
VS .Z
an a d v i s o r y c a p a c i t y as Vice-Chairmen of S t a t e Committees.
O thers w i l l be of g r e a t a s s i s t a n c e d u r i n g t h e t r a n s f e r of au
t h o r i t y to the new S t a t e Chairmen and t h e i r s t a f f s .
Formation of new War Finance Committees in a l l S t a t e s i s
p r o g r e s s i n g and th e y are r a p i d l y t a k i n g over th e r e s p o n s i b i l
i t i e s of th e former S t a t e War Savings S t a f f s and t h e War
F inance Committees which were s e t up f o r th e Second War Loan
Drive in A p r i l , A l l o f th e new S t a t e o r g a n i z a t i o n s w i l l be
f u n c t i o n i n g f u l l y w i t h i n a few days and in a l l S t a t e s p r e p a r
a t i o n s a r e being made f o r th e T h ir d War Loan Drive which b e
g in s September 9*
-OOOr?
2
Incomes and heavy eowaitisente, who are lean t
to afford i t . Shat
i t out reason people who have such taring* should e x p o r t the voluntary
method to the f u lle s t ex ten t.
Sincerely your*,
ts / H s * t W
Mo
Secretary o f the treasury.
Colonel fran klin D*O iler,
free!d en t, Prudential l i f e
Insurance Company,
Newark, Her Jersey.
TO,
I bav» your l e t t e r o f June i § in »M eh y«m s t a t e y t m r
th a t th e currant p u b lic it y rbcut cocgpulsory earing* i* t o m t o m to
th e War Bond campaign ae w e ll a* a l l eth er fe m e o f sa v in g s *
I e«ree th a t d is c u s sio n a t th l* t l a e about fo r c in g p eo p le to
len d * g iv en amount o f aeney to th e Ooveranent can prove v ery daaagin e not © sly to th e s a le o f Mar Bondi h a t to a l l oth er earin g* a ed ia .
I f e e l ale© th a t th e d is c u s s io n i» e e p e e ta lly u n fortu n ate at th l*
t in e because th ere l e no in d ic a tio n th a t i t v i l l be n ecessa ry or v is e
to adept eosrpnleory savin gs a* a Ooveranent p o lic y .
Congress ha* made I t c le a r th a t any ta x b i l l p a ssed in 19^3
would not be r e t r o a c tiv e on 1 ^ 3 i n o o m . Bven i f Congress should
d ecid e e v e n tu a lly th a t a conpulsory le n d in g p la n would h e lp to
c o n tr o l in f l a t i o n , i t teen s o n ly reason ab le th a t s e ^ u a AleTOesiw1
o f each a p la n should be postp oned, l a f a ir n e s s to th e a t l l i o i i s
p a t r io t ic Americans who are supp orting th e v o lu n ta ry s y s te n , u n t i l
we are faced w ith cone need to wake a d e c is io n .
As you no doubt know, m a y o f ue b eliev e that consideration o f
any sort o f le g is la tiv e savings plan should wait u n til th ere is sons
Indication th at the * » • or *>»tar
n o n -ln fla tlo n a r y sou rees cannot t o a ch iev e* by th o volu n tary ■otbod.
There 1* no each I n d ic a tio n a t t h l . t i n e . *
In each o f th* to o t o Loan d r lv .» , and h a v . ra l* o d 7 M 1 U « dollar*
f r e e in d iv id u a ls In the f i r s t s i x month# o f t h is y e a r .
I t should be p o ssib le at le a s t to double in the next s ix nonths,
the 7 b illio n * no r a te d In tho f lr a t e l* nonth. through
volant” ?
aethod, and to got a ll tho fund, fmm n « .a v i
rath”
"
fo r fron non-inf latlonary ln v eo tw a t* .
voluntary plan hna «*•
craat vlrtu a o f being fle x ib le enough to p o m lt bond buyer, to esntlw *
n e tln g v it a l c o w n tsen t. fo r l i f e inauranoo, ■op**a« * y f 8"*** “ 4
other non-lnflatlonnry ln vesteon te, a t the t u n tin e digging deeply
in to fund, not noodod to M at auch rotjairauenta. 0 i« r f *he *****
weaknesses o f a eoapuleory saving* plan la I ts I t o o f such flo x lb
t
fa get fron a compulsory savings plan as «noh a . . . con get «*<“ # * “ *
voluatary nothod, would boar w ith crushing weight on those w ith f i» 4
\
s ~
In a b o rt, I urge th a t th e pronator* " * ™ * * 1 °"
f ^ t h T
savingo, whatever i t * v ir tu e a , ehould not he perm itted to hamper the
great now of volu n ta ry a n t i- in f la t io n a r y inveetm ent*.
S in c e r e ly y o u rs*
/ $ / F rank lin S*O iler
m
fr a n k lin ty O iie r
tm
s m
u L
lm w m m
compact
/ of Ameridft /
/ Home Office,
Mewjwssy
m ?9*
The Honorable ffanry Morgenthau, Jr*,
Secretary o f the Treasury,
Washington* 0 . C.
My dear Mr. Secretary*
th e U nited S ta te s Treasury War fin a n c e Committee of
Mew Jersey, o f which X aa Chairman, has l a i d i t s plane and hae every
e x p e cta tio n o f making the coming War Bond campaign a g r e a t eucoees in th is
S ta te , p a r tic u la r ly as we are o rg a n isin g to make I t p o s s ib le fo r almost
every c it iz e n in t h i s S tate to c o n tr ib u te to the war e f f o r t by the purchase
o f war bonds and stamps. Based on p a st ex p e rie n c e , we b e lie v e th a t th e ir
p a t r io t ic response w i l l be sp ontaneous and generou s. However, we have bftsa
d istu rb ed l a t e l y by the d is c u s sio n concerning compulsory s a v in g . Continued
d is c u s s io n a t t h i s t in e i s bound to r ea c t unfavorably on the volun tary pur
chase o f war bonds in both th e September and, i f th e d is c u s s io n continues,
In th e December campaign as w e ll.
tfe sh ou ld th in k th a t both th e A dm inistration and Congress would
want to se e the r e s u lt s o f th e se two campaigns on a v o lu n ta ry b a s is befors
making any d e c is io n whatever in referen ce to compulsory s a v in g . A prematurs
d is c u s sio n o f t h i s su b jec t would u n questionab ly m a te r ia lly impair the suceeis
o f th e se two d r iv e s .
The volu n tary purchase o f war bonds has been a very important factor
1b reducing th» danger o f in f la t io n and I would r eg r o t g r e a t ly i f anything
should ho don. to d looou rag. th in M l? in p ort ant a e t i t i t y , e spool a lly at thl»
t i n s whoa prohahly n othing oould ho dono In refer en ce to compulsory soring
u n t i l tb s sad o f th e y e a r . Jo the e x te n t th a t the d is c u s s io n discourage-tin
volu n tary purchase o f war bonds, i t i s c o n tr ib u tin g toward in f la t io n and l
hope something aan ho done to sto p t h is d is c u s s io n a t t h is tim e, i f i t i* »>
a l l p o s s ib le .
A ll volu n tary savin gs where th e proceeds are u ltim a te ly Invested to
Government bonds are very pow erful a n t i- in f la t io n a r y f o r c e s , such as the P*F
meat o f d eb ts, in c lu d in g m ortgages, and l i f e insurance premiums, »»d
should be done t© discourage such sa v in g s , and th ese very important factor*
should be very c a r e f u lly co n sid ered in any compulsory sa v in g p la n . The m c u sslo n a t t h is tim e o f compulsory sa v in g s u n q u estion ab ly
*®fl ^ * * L w
a f f e c t volu n tary s a v in g s . P a t r io t ic in c e n tiv e s o f v o lu n ta ry e f f o r t sbouia
m aintained, i f a t a l l p o s s ib le .
In h is rep ly, Secretary Morgenthau said "Congress has made i t clear
th at any tax b i l l passed in 1943 would not be retroactive on 1943 income.
Even i f Congress should decide even tu ally th at a compulsory lending plan
would help to control in fla tio n , i t seems only reasonable th at serious
disoussion of such a plan should be postponed, in fa irn ess to the m illio n s
of p a tr io tic Americans who are supporting the voluntary system, u n til we
are faced w ith some need to make a d ecisio n ,
"As you no doubt know, many o f us b eliev e that consideration o f any
sort of le g is la tiv e savings plan should w ait u n til there i s seme ind ication
th at the same or b etter resu lts in obtaining funds from n on -inflation ary
sources cannot be achieved by the voluntary method.
in d ication at th is tim e.
There is no such
We have exceeded our goals in each of the two
War Loan drives, and have raised 7 b illio n d ollars from individu als in the
f ir s t six months of th is year,"
ued:
"One o f the great weaknesses of a compulsory
savings plan i s i t s lack o f f le x ib ilit y .
To get from a compulsory savings
plan as much as we can get through the voluntary method would bear with
crushing weight on those with fixed incomes and heavy commitments, who are
le a st able to afford i t .
S h o u ld
That is one reason people who have suoh savings
S"nnAr*f. f.liA w n l im f o w r ma+Vin/l
8 li p i IT T ' r f ' . t f e d '
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Te s *
jl u L
In a letter to Colonel Franklin D ’Olier, President of the Prudential
Life Insurance Company and Chairman of the War Finance Committee of New
- y —L
^
..
Jersey, Secret ary w£b M b m 0<PwsnfWpy^H#*1
* ^ Morgenthai
A
that one
of the great advantages of the present voluntary method of selling War Bonds
is that it is "flexible enough to permit Bond buyers to continue meeting
vital commitments for life insurance, mortgage payments, and other non
in flationary investments, at the same time digging deeply into funds not
needed to meet such requirements."
Secretary Morgenthau’s letter, whanh war released today in Washington,
where D+TTlier had come to confer with Mr. Morgenthau and the National Bond
Sales organization on plans for the Third War Loan, was written in^reply to
a communication from
B v irn -wm e li D *01iet^-»tated^that currenl
publicity discussing compulsory savings is harmful not only to the sale of
,
iMBonds, but to the sale of other non-inflat ionary investments^
said that
T*'
"to the extent that the discussion discourages the voluntary purchase of
War Bonds, it is contributing toward inflation*"
urged "that the
premature discussion of compulsory savings, whatever its virtues, should not
be permitted to hamper the great flow of voluntary anti-inflationary invest
ments. "
"All voluntary savings where the proceeds are ultimately invested in
Government Bonds,"^Ij’Olier said, "are very powerful anti-inflationary forces,1
\
Vs ^
and "nothing should be done to discourage such savings."
is l
fitau**
specifically listed the payment of life insurance premiums, mortgage
payments and the payment of debts as anti-inflationary forces.
He stated
that "the discussion at this time of compulsory savings unquestionably would
seriously affect voluntary savings.
Patriotic incentives of voluntary
effort should be maintained, if at all possible."
$
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
W ednesday*-July 21, 1943.
In a l e t t e r t o C o lo n e l F r a n k li n D’ O l i e r , P r e s id e n t o f th e P r u d e n ti a l L if e
In s u ra n c e Company and C hairm an of th e War F in a n c e Com m ittee o f New J e r s e y ,
S e c r e ta r y M orgenthau d e c la r e d t h a t one o f th e g r e a t a d v a n ta g e s o f th e p r e s e n t
v o lu n ta r y m ethod o f s e l l i n g War Bonds i s t h a t i t i s “f l e x i b l e enough to p e rm it
Bond b u y e rs to c o n tin u e m e e tin g v i t a l com m itm ents f o r l i f e in s u r a n c e , m o rtg ag e
paym ents, and o th e r n o n - i n f l a t i o n a r y in v e s tm e n ts , a t th e same tim e d ig g in g
d eep ly i n t o fu n d s n o t n eed ed to m eet su ch r e a u i r e m e n t s .0
S e c r e ta r y M o rg en th au 1s l e t t e r , r e l e a s e d to d a y in W ashington, w here
C o lo n e l D’ O lie r had come to c o n f e r w ith Mr. M orgenthau and th e N a tio n a l Bond
S a le s o r g a n iz a ti o n on p la n s f o r th e T h ird War Loan, was w r i t t e n in r e p ly t o a
com m unication from th e New J e r s e y ch airm an .
In h i s l e t t e r , C o lo n e l D’ O lie r s a i d t h a t c u r r e n t p u b l i c i t y d is c u s s in g com
p u ls o ry s a v in g s i s h a rm fu l n o t o n ly to th e s a l e of B onds, b u t to th e s a l e o f
o th e r n o n - i n f l a t i o n a r y in v e s tm e n ts , He s a id t h a t nt o th e e x te n t t h a t th e d i s
c u s s io n d is c o u r a g e s th e v o lu n ta r y p u rc h a s e o f War Bonds, i t i s c o n t r i b u t i n g t o
ward i n f l a t i o n . 0 He u rg e d ° t h a t th e p re m a tu re d is c u s s io n o f com pulsory s a v in g s ,
w h atev e r i t s v i r t u e s , s h o u ld n o t b e p e r m itte d to ham per th e g r e a t flo w o f v o l
u n ta ry a n t i - i n f l a t i o n a r y in v e s t m e n t s .0
°A11 v o lu n ta r y s a v in g s w here th e p ro c e e d s a r e u l t i m a t e l y in v e s t e d ;in-G ov
ernm ent B o n d s ,0 C o lo n e l D tO lie r s a i d , ° a r e v e ry p o w e rfu l a n t i - i n f l a t i o n a r y •
f o r c e s , 0 and. 0n o th in g s h o u ld be done t o d is c o u r a g e su ch s a v i n g s , 0 He s p e c i f
i c a l l y l i s t e d th e paym ent o f l i f e , in s u r a n c e prem ium s, m o rtg ag e paym ents and th e
payment o f d e b ts a s a n t i - i n f l a t i o n a r y f o r c e s .
He s t a t e d t h a t ° th e d is c u s s io n
a t t h i s tim e o f com pulsory s a v in g s u n a u e s tio n a b ly w ould s e r i o u s l y a f f e c t v o lu n
ta r y s a v in g s . P a t r i o t i c in c e n tiv e s o f v o lu n ta r y e f f o r t s h o u ld be m a in ta in e d , i f
at a l l p o s s ib le .0
In h i s r e p l y , S e c r e ta r y M orgenthau s a i d , “C o n g ress h a s made i t c l e a r t h a t
any t a x b i l l p a s s e d in 1943 would n o t be r e t r o a c t i v e on 1943 incom e» Even i f
C ongress s h o u ld d e c id e e v e n tu a lly t h a t a c o m p u ls o ry . le n d in g p la n w ould h e lp to
c o n t r o l i n f l a t i o n , i t seems o n ly r e a s o n a b le t h a t s e r io u s d is c u s s io n o f su ch a
p la n s h o u ld be p o s tp o n e d , in f a i r n e s s to th e m i l l i o n s of p a t r i o t i c A m ericans who
a re s u p p o r tin g th e v o lu n ta r y sy ste m , u n t i l we a r e f a c e d w ith some n eed to make a
d e c is io n .
1
- 2 -
^As y o u no doubt know, many o f u s belA eve t h a t c o n s i d e r a t i o n o f any s o r t o f
l e g i s l a t i v e s a v in g s p la n s h o u ld w a it u n t i l t h e r e i s some i n d i c a t i o n t h a t th e
same o r ' b e t t e r r e s u l t s i n o b ta in in g fu n d s from n o n - i n f l a t i o n a r y s o u rc e s ca n n o t
be a c h ie v e d by th e v o lu n ta r y m ethod. T here i s no su c h i n d i c a t i o n a t t h i s tim e .
We have ex ce ed ed o u r g o a ls i n eac h of th e two War Loan d r i v e s , and have r a i s e d
7 b i l l i o n d o l l a r s from in d i v i d u a l s in th e f i r s t s i x m onths of t h i s y e a r . ”
The S e c r e ta r y c o n tin u e d : ” 0ne o f th e g r e a t w eak n esses o f a com pulsory
sa v in g s p la n i s i t s l a c k o f f l e x i b i l i t y *
To g e t from a com pulsory s a v in g s p la n
as much as we c a n g e t th ro u g h th e v o lu n ta r y m ethod w ould h e a r w ith c r u s h in g
w eight on th o s e w ith f i x e d incom es and heavy com m itm ents, who a r e l e a s t a b le to
a ffo rd i t .
T h at is one r e a s o n p e o p le who have su ch s a v in g s s h o u ld s u p p o rt th e
v o lu n ta ry m ethod t o th e f u l l e s t e x t e n t . ”
The f u l l t e x t s o f th e two l e t t e r s a r e a s f o llo w s :
The H onorab le Henry M orgenthau, J r . ,
S e c r e ta r y of th e T r e a s u r y ,
W ashington, D. C,
My d e a r Mr. S e c r e t a r y ;
/
V\ '
The7U n ite d S t a t e s T re a su ry War F in a n c e C om m ittee o f Hew J e r s e y ,
o f w hich I am C hairm an, h as l a i d i t s p la n s and h a s ev e ry e x p e c ta tio n
o f m aking th e com ing War Bond cam paign a g r e a t s u c c e s s in t h i s S t a t e ,
p a r t i c u l a r l y as we a r e o r g a n iz in g to make i t p o s s i b l e f o r a l m o s t ev ery
c i t i z e n in t h i s S t a t e to c o n t r i b u t e to th e w ar e f f o r t by th e p u rc h a s e
o f war bonds and stam ps.* B ased on p a s t e x p e r ie n c e , we b e lie v e t h a t
t h e i r p a t r i o t i c re s p o n s e w i l l be s p o n ta n e o u s and g e n e ro u s . However,
we have b e e n d i s t u r b e d l a t e l y by th e d i s c u s s io n c o n c e rn in g com pulsory
s a v in g . C o n tin u e d d is c u s s io n a t t h i s tim e i s bound to r e a c t u n f a v o r a b ly on th e v o lu n ta r y p u rc h a s e o f w ar bonds in b o th th e S eptem ber and,
i f th e d is c u s s io n c o n tin u e s , in th e December cam paign as w ell*
We sh o u ld t h i n k t h a t b o th th e A d m in is tr a tio n and C o n g ress w ould
want to se e th e r e s u l t s of th e s e two cam paigns on a v o lu n ta r y b a s i s
b e f o r e m aking any d e c i s i o n w h a te v e r in r e f e r e n c e to com pulsory s a v in g .
A p re m a tu re d is c u s s io n of t h i s s u b je c t w ould u n o u e s tio n a b ly m a t e r i a l l y
im p a ir th e s u c c e s s o f th e s e two d r i v e s .
The v o lu n ta r y p u rc h a s e o f w ar bonds h as b e e n a v e ry im p o rta n t
f a c t o r in re d u c in g th e d a n g e r o f in f la tio n and I w ould r e g r e t g r e a t l y i f
a n y th in g s h o u ld be done to d is c o u r a g e t h i s v e ry im p o rta n t a c t i v i t y ,
e s p e c i a l l y a t t h i s tim e when p ro b a b ly n o th in g c o u ld be done in r e f e r
ence t o com pulsory s a v in g u n t i l th e end of th e y e a r , To th e e x te n t
t h a t th e d is c u s s io n d is c o u ra g e s th e v o lu n ta r y p u rc h a s e o f w ar b o n d s, i t
i s c o n t r i b u t i n g to w ard i n f l a t i o n and I hope so m eth in g can be done to
s to p t h i s d i s c u s s io n a t t h i s tim e , i f j i t i s a t a l l p o s s i b l e .
A ll v o lu n ta r y s a v in g s w here th e p ro c e e d s a r e u l t i m a t e l y in v e s te d
in Government "bonds a r e v e ry p o w e rfu l a n t i - i n f l a t i o n a r y f o r c e s , su ch
as th e paym ent o f d e b ts , in c lu d in g m o rtg a g e s , an d l i f e in s u r a n c e pra**
miums, and n o th in g s h o u ld be done to d is c o u r a g e su ch s a v in g s , and th e s e
v ery im p o rta n t f a c t o r s sh o u ld be v e ry p a r e f u l l y c o n s id e r e d in any com
p u ls o r y s a v in g p la n .
The d is c u s s io n a t t h i s tim e o f com pulsory s a v in g s
in q u e s tio n a b ly w ould s e r io u s ly ' a f f e c t v o lu n ta r y ‘s a v in g s . P a t r i o t i c
i n c e n tiv e s o f v o lu n ta r y e f f o r t s h o u ld be m a in ta in e d , i f a t a l l p o s s i b l e .
In s h o rt., I u r g e t h a t the., p re m a tu re d i s c u s s io n o f com pulsory s a v in g s , w h a te v e r i t s v i r t u e s , sh o u ld n o t be p e r m i tt e d to ham per th e g r e a t
flo w o f v o lu n ta r y a n t i - i n f l a t i o n a i y in v e s tm e n ts .
S in c e r e ly y o u r s ,
/ S / F r a n k lin D’O lie r
D ear C o lo n e l D * 0 1 ier:
I have y o u r l e t t e r o f Ju n e 28 in w hich y o u s t a t e y o u r b e l i e f t h a t
th e c u r r e n t l y p u b l i c i t y ab o u t com pulsory s a v in g s i s dam agine t o th e •
a r Bond cam paign as w e ll as a l l o th e r form s o f s a v in g s .
I a g re e t h a t d is c u s s io n a t t h i s tim e a b o u t f o r c i n g p e o p le to le n d
a g iv e n amount o f money to th e Government c a n p ro v e v erv dam aging n o t
o n ly to th e s a l e o f War Bonds b u t to a l l o th e r s a v in g s media*
I feel
a l s o t h a t th e d i s c u s s io n i s e s p e c i a l l y u n f o r tu n a te a t t h i s tim e b e
c a u s e th e r e is ^ n o i n d i c a t i o n t h a t i t w i l l be n e c e s s a r y o r w ise to ad o p t
com pulsory s a v in g s a s a Government p o lic y .
C ongress h a s made i t c l e a r t h a t any ta x b i l l p a s s e d in 1943 w ould
n o t b e r e t r o a c t i v e on 1943 incom e. Even i f C o n g ress s h o u ld d e c id e
e v e n tu a lly t h a t a co m pulsory le n d in g p la n w ould h e lp to c o n t r o l i n f l a tx ° n r t seem s-o n ly r e a s o n a b l e - t h a t s e r io u s d is c u s s io n o f su ch a p la n
s h o u la be p o s tp o n e d , i n f a i r n e s s to th e m i l l i o n s o f p a t r i o t i c A m ericans
who a r e s u p p o r tin g th e v o lu n ta r y sy ste m , u n t i l we a r e f a c e d w ith some
need to make a d e c i s i o n .
As you no d o u b t know, many o f u s b e l ie v e t h a t c o n s i d e r a t i o n o f any
s o r t o f l e g i s l a t i v e s a v in g s p la n s h o u ld w a it u n t i l th e r e i s some i n d i ^ a tio n t h a t th e same o r b e t t e r r e s u l t s in o b ta in in g fu n d s from noni n f l a t i o n a r y s o u r c e s c a n n o t be a c h ie v e d by th e v o lu n ta r y m ethod.
There
is no su ch i n d i c a t i o n a t t h i s tim e . We have ex ce ed ed o u r g o a ls i n each
f tn e two % r Loan d r i v e s , and have r a i s e d 7 b i l l i o n d o l l a r s from i n d i
v id u a ls m th e f i r s t s i x m onths of t h i s y e a r .
- 4 I t s h o u ld be p o s s i b l e a t l e a s t to d o u b le i n th e n e x t s i x m o n th s,
th e 7 b i l l i o n s we r a i s e d i n th e f i r s t s i x m onths th ro u g h th e v o lu n tary m ethod, and to g e t a l l th e fu n d s from new s a v in g s r a t h e r th a n by t r a n s f e r from n o n - i n f l a t i o n a r y in v e s tm e n ts . The v o lu n ta r y p la n h as th e
g r e a t v i r t u e o f b e in g f l e x i b l e enough t o p e rm it bond b u y e rs to c o n tin u e
m e e tin g v i t a l com m itm ents f o r l i f e in s u r a n c e , m o rtg ag e p ay m en ts, and
o th e r n o n - in f l a tio n a x y in v e s tm e n ts , a t th e same tim e d ig g in g d ee p ly
i n t o fu n d s n o t n eed ed to m eet su ch r e q u ir e m e n ts .
One o f th e g r e a t
w eak n esses o f a co m pulsory s a v in g s p la n i s i t s la c k o f su ch f l e x i b i l i t y .
To g e t from a co m p u lso ry s a v in g s p la n a s much a s we can g e t th ro u g h th e
v o lu n ta r y m ethod, w ould b e a r w ith c r u s h in g w eig h t on th o s e w ith f i x e d
incom es and heavy com m itm ents, who a r e l e a s t a b le to a f f o r d i t .
T hat
i s one r e a s o n p e o p le who have su ch s a v in g s s h o u ld s u p p o rt th e v o lu n ta r y
m ethdd to th e f u l l e s t e x t e n t.
S in c e r e ly y o u r s ,
/S / HENRY MORGMHAU, JR.
S e c r e ta r y o f th e T re a su ry .
C o lo n e l 3fpanklin D * O ile r,
P r e s i d e n t , P r u d e n t i a l L if e
In s u ra n c e Company*
Newark, New J e r s e y .
- 3 -
If* PABOTT
1*
Payment a t par and accrued i n t e r e s t , i f an y, f o r c e r t i f i c a t e s a llo t t e d
on cash su b s c r ip tio n s hereunder must be made o r completed on or b efo re August 2 ,
19A3# o r on la t e r allotm en t*
Any q u a lif ie d d e p o sita r y s i l l be perm itted t o
make payment by c r e d it fo r c e r t i f i c a t e s a l l o t t e d t o i t up t o any amount f o r
which i t s h a ll be q u a lifie d in e x c e s s o f e x is t in g d e p o s its , when so n o t if ie d
by th e Federal Reserve Bank o f i t s D is tr ic t*
Treasury C e r t if ic a t e s o f Indebted
n ess o f S e r ie s B-19A3* maturing August 1 , 1913, w i l l be a ccep ted a t par in pay
ment f o r any c e r t i f i c a t e s su b scrib ed f o r and a l l o t t e d , and should accompany the
su b scrip tion *
T* GENERAL PROflSlOHS
1*
As f i s c a l a g e n ts o f th e U nited S t a t e s , F ederal Reserve Banks are
a u th o r ise d and req u ested to r e c e iv e s u b s c r ip tio n s , t o make a llo tm e n ts up the
b a s is and up t o th e amounts in d ic a te d by th e S ecreta ry o f the Treasury t o the
F ederal R eserve Banks o f th e r e s p e c tiv e d i s t r i c t s , to is s u e a llo tm en t n o tic e s ,
t o r e c e iv e payment f o r c e r t i f i c a t e s a l l o t t e d , t o make d e liv e r y o f c e r t if ic a t e s
on f u ll- p a i d s u b s c r ip tio n s a l l o t t e d , and th e y may is s u e in te r im r e c e ip ts pend
in g d e liv e r y o f th e d e f in it iv e c e r t if ic a t e s *
2*
The Secretary o f th e Treasury may a t any tim e , o r from tim e to tim e,
p r e sc r ib e supplem ental o r amendatory r u le s and r e g u la tio n s governing th e o ffe r
in g , which w i l l be communicated promptly t o th e Federal Reserve Banks*
BERRY MQRGEKTHAU, J2U»
S ecretary o f th e Treasury*
the c e r tific a te s w ill be acceptable to secure d ep osits o f public softer#.
Shay w ill not be acceptable in payment o f tea m ,
4.
n a tio n .
Bearer c e r tific a te s with in te r e st coupons attached w ill b« issu ed in dsn
off» ,0 0 0 ,
*5,000, *10,000, *100,000 on* *1,000,000.
tho e o r tlfis a t* . * ilij
n et be Issued in registered fern .
5*
The c e r tific a te s w ill be subject to the general regu lation s o f tb s freasaij
Department, now or hereafter prescribed, governing United S ta tes c e r tlfle e ts # *
in *
1,
m m m i p n m
m
k w m m r
Subscriptions w ill bo received a t the Federal Reserve banks and Branches
and a t the treasury Department, S a^ in gten .
Subscribers w est agree not to s e l l or
otherwise dispose o f th e ir su b scrip tion s, or o f the se c u r itie s which nay be a lle ttc
thereon, prior to the clo sin g o f the subscription becks*
Banking in s titu tio n s
generally any submit exchange subscriptions fo r account o f custom ers, but only the
Federal Reserve Banks snd the Treasury Department are authorised to a ct a s o f f lc iil
agen cies.
Others than banking in s titu tio n s w ill not bo perm itted to enter sub
scrip tion * except fo r th e ir owe account*
Cash su bscrip tions trm eewaorcial banks
fo r th e ir own account w ill be received w ithout deposit but w ill be r e str ic te d in
I
each cass to an amount not exceeding the combined c a p ita l, surplus and undivided
p r o fits , or 5 poreent o f tho to ta l d e p o sits, whichever i c greater, o f the sub
scrib in g bash*
2.
The Secretary o f tho Treasury reserves tho rig h t to r sje o t any subscrip
tio n , in wholo or in p a rt, to a llo t lo s s than tho amount o f c o r tiflc a te s applied ti
and to d e c s tho books as to any or a l l subscriptions a t any tin s w ithout notice?
and any action ho nay taka in these respect* sh a ll be fin a l*
Subject to these redi
v atlen a, subsexlptiena in payment o f which Treasury C ertifica te# o f Indebtedness 4
Boric# B-1943 are tendered w ill be a llo tte d in f u l l .
A ll cash subscriptions wllX|
a llo tte d on an equal percentage b a sis, to bo p u b licly announced.
w ill be cen t out promptly upon allotm ent.
Allotment notlceji
UNITED STATES OP AMERICA
7 /8 PERCENT TREASURY CERTIFICATES OP INDEBTEDNESS OF SERIES D-1944
Dated and bearing in te r e st from August 2 , 1943
August 1 , 1944
TREASURY DEPARTMENT,
O ffice o f the Secretary,
Washington, July 22, 19431
1943
Department Circular Ho. 717
F isca l Service
Bureau o f the Public Debt
Jjcs
JH"
y j K 1*
I.
OFFERING OF CERTIFICATES
vJ
\
The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, in vites subscriptions, at par and accrued in terest,
from the people of the United States for certifica tes of indebtedness of the United!
States, designated 7/8 percent Treasury C ertificates of Indebtedness of Series
D-1944, in exchange for Treasury C ertificates of Indebtedness of Series P-1943,
maturing August 1, 1943.
In addition, $900,000,000, or thereabouts, of the nee
certifica tes are offered for subscription for their own account by commercial bank®
which are defined for th is purpose as banks accepting demand deposits.
II.
1.
DESCRIPTION OF CERTIFICATES
The certifica tes w ill be dated August 2, 1943, and w ill bear in terest fros
that date at the rate of 7/8 percent per annum, payable on a semiannual basis on
February 1 and August 1, 1944.
They w ill mature August 1 , 1944, and w ill not be
subject to ca ll for redemption prior to maturity.
2.
The income derived from the certifica tes shall be subject to a ll Federal
taxes, now or hereafter imposed. The certifica tes shall be subject to estate, in*
heritance, g ift or other excise taxes, whether Federal or State, but shall be exe^
from a ll taxation now or hereafter imposed on the principal or in terest thereof by
any State, or any of the possessions of the United States, or by any local taxing
authority.
7
TRSASUHTDSPARTM
8RT
Washington
FOR RSLSA3B, I0MI8G raSPAPSRS,
r V
/V
Press Service
Thursday, July 22, 1941._______
| pwi
M l!
Secretary of the Treasury Morgenthau today announced the offering,
through the Federal Reserve Banka, of 7/8 percent Treaatiry C ertificates of
Indebtedness of Series D-1944, open on an exchange b asis, par for par, to
holders of Treasury C ertificates of Indebtedness of Series B-1943, maturing
August 1, 1943. An additional amount of 1900,000,000,/ or thereabouts, of
ths new certifica tes w ill bs allotted to commercial banks, which are defined
for t h i s purpose as banks accepting demand deposits, on cash subscriptions
for their own account. Cash subscriptions w ill not oe entertained from any
other class of subscriber. Restriction of the cash Offering to commercial
banks is in lin e with previously announced policy to 1asparatg™t2rr^appcal" for
.■»n»iknmbi« iti fumnii1.1 f v awe, offerings to commercial banks.
Secrete
pte!
|rsof3
:fft1|13
saucer!
Htispiu
ilceiroi
•rclass
12ISIB
The subscription books w ill be open for one day only for the receipt of
cash subscriptions, and w ill remain open for two days for the receipt of ex
change subscriptions.
The certifica tes w ill be
August 1, 1944, and w ill bear
percent per annum, payable on
1944. They w ill be issued in
attached, in denominations of
I sit
inkri
dated August 2, 1943, w ill be payable on
y aisc
in terest at the rate of seven-eighths of one
a semiannual basis on February 1 and August 1,
bearer for® only, with two interest coupons
#1,000, #5,000, #10,000, #100,000 and #1,000,000. pier
Pursuant to the provisions of the Public Debt Act of 1941, in terest upon Milt
the certifica tes now offered shall not have any exemption, as such, under
Federal tax Acts now or hereafter enacted. The fu ll provisions relating to
fo
srrm
sua?i
taxability are set forth in the o ffic ia l circular released today.
*oertifi
ffli
p,
tax
Subscriptions w ill be received at the Federal Reserve Banks and Branches
Pity;
and at the Treasury Department, Washington. Banking in stitu tion s generally
may submit exchange subscriptions for account of customers, but only the
User!
Federal Reserve Banks and the Treasury Department are authorised to act as
ill
o ffic ia l agencies. Cash subscriptions from commercial banks for their own
account w ill be received without deposit but w ill be restricted in each case
to an amount not exceeding the combined cap ital, surplus and undivided profits,
or 5 percent of the to ta l deposits, whichever is greater, of the subscribing
bank.
rat
Subject to the usual r e s e rv a tio n s , subscriptions in payment of which
Treasury C ertificates of Indebtedness of Series B-1943 are tendered w ill be
allotted in fu ll. All cash subscriptions w ill be allotted on an equal per
centage b asis, to be publicly announced. Payment for any certificates
allotted must be made or completed on or before August 2, 1943, or on later
^tss
allotment.
Wk
The text of the o ffic ia l circular follows;
11
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING- NEWSPAPERS,
T hursday, J u ly 32, 1943.
P r e s s S e rv ic e
No. 37-68
S e c re ta ry ' o f th e T re a su ry M orgenthau to d a y an n o u n ced th e o f f e r i n g ,
th ro u g h th e F e d e r a l R eserv e B anks, o f 7 /8 p e r c e n t T re a su ry C e r t i f i c a t e s o f
In d e b te d n e s s o f S e r ie s D -1944, open on an exchange "b asis, p a r f o r p a r , to
h o ld e rs o f T re a su ry C e r t i f i c a t e s o f In d e b te d n e s s o f S e r ie s B -1943, m a tu rin g
A ugust 1, 1943. An a d d i t i o n a l amount o f $ 9 0 0 ,0 0 0 ,0 0 0 , o r th e r e a b o u ts , o f
th e new c e r t i f i c a t e s w i l l be a l l o t t e d t o co m m ercial b a n k s, w hich a r e d e f in e d
f o r t h i s p u rp o se a s banks a c c e n tin g demand d e p o s i t s , on c a s h s u b s c r i p t i o n s
f o r t h e i r own a c c o u n t. C ash s u b s c r i p t i o n s w i l l n o t be e n t e r t a i n e d from any
o th e r c l a s s of s u b s c r i b e r .
R e s t r i c t i o n o f th e c a s h o f f e r i n g to co m m ercial
banks i s in l i n e w ith p r e v io u s ly announced p o li c y to e x c lu d e from War Loan
D riv es th e o f f e r i n g s to co m m ercial b an k s.
The s u b s c r i p t i o n books w i l l be open f o r one day o n ly f o r th e r e c e i p t o f
c a s h s u b s c r i p t i o n s , and w i l l rem a in open f o r two d ay s f o r th e r e c e i p t o f e x change s u b s c r i p t i o n s .
The c e r t i f i c a t e s w i l l b e d a te d A ugust 2 , 1943, w i l l be p a y a b le on
August 1, 1944, and w i l l b e a r i n t e r e s t a t th e r a t e o f s e v e n - e ig h th s o f one p e r c e n t p er, annum, p a y a b le on a sem ian n u al b a s i s on F e b ru a ry 1 and A ugust 1,
1944. They w i l l be is s u e d in b e a r e r form o n ly , w ith two i n t e r e s t coupons a t
ta c h e d , in d e n o m in a tio n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 and $ 1 ,0 0 0 ,0 0 0 ,
P u rsu a n t to th e p r o v is io n s o f th e P u b lic Debt Act o f 1941, i n t e r e s t upon
th e c e r t i f i c a t e s now o f f e r e d s h a l l n o t have any e x em p tio n , a s s u c h , u n d e r
F e d e ra l t a x A cts now o r h e r e a f t e r e n a c te d .
The f u l l p r o v is io n s r e l a t i n g to
t a x a b i l i t y a r e s e t f o r t h i n th e o f f i c i a l c i r c u l a r r e l e a s e d to d a y .
S u b s c r ip tio n s w i l l be r e c e iv e d a t th e F e d e r a l R eserv e Banks and B ranches
and a t th e T re a su ry D ep artm en t, W ashington. 3 a n k in g i n s t i t u t i o n s g e n e r a lly
may su b m it exchange s u b s c r i p t i o n s f o r a c c o u n t o f c u s to m e rs, b u t o n ly th e Fed
e r a l R e serv e Banks and th e T re a s u ry D epartm ent a r e a u t h o r i z e d to a c t as o f f i
c i a l a g e n c ie s . Cash s u b s c r i p t i o n s from co m m ercial b an k s f o r t h e i r own a c c o u n t
w i l l be r e c e iv e d w ith o u t d e p o s it b u t w i l l be r e s t r i c t e d in ea c h c a s e to an
amount n o t e x c e e d in g th e com bined c a p i t a l , s u r p lu s and u n d iv id e d p r o f i t s , o r
5 p e r c e n t o f th e t o t a l d e p o s i t s , w h ich ev e r i s g r e a t e r , o f th e s u b s c r ib in g bank*
S u b je c t to th e u s u a l r e s e r v a t i o n s , s u b s c r i p t i o n s in paym ent o f w hich
T rea su ry C e r t i f i c a t e s o f In d e b te d n e s s of S e r ie s B—1943 a r e te n d e r e d w i l l be
a l l o t t e d in f u l l *
A ll c a s h s u b s c r i p t i o n s w i l l b e a l l o t t e d on an e q u a l p e r
c e n ta g e b a s i s , to be p u b l i c l y announced.
Payment f o r any c e r t i f i c a t e s a l l o t
te d m ust be made o r co m p le te d on o r b e f o r e A ugust 2 , 1943, o r on l a t e r a l l o t
ment.
The t e x t o f th e o f f i c i a l c i r c u l a r f o ll o w s t
UNITED STATES OF AMERICA
7 /8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-1944
Due A u g u st I , 1944
Dated and b e a r i n g i n t e r e s t fro m A u g u st 2 , 1 9 0
TREASURY DEPARTMENT,
O f f ic e o f th e S e c r e t a r y ,
W ash in g to n , J u ly 22,1943*
1943
D epartm ent C ir c u la r No, 717
F i s c a l S e r v ic e
Bureau o f th e P u b lic D ebt
I.
OFFERING OF CERTIFICATES
1* The S e c r e t a r y o f th e T re a su ry , p u r s u a n t to th e a u t h o r i t y o f th e Second
L ib e r ty Bond A c t, a s amended, i n v i t e s s u b s c r i p t i o n s , a t p a r and a c c ru e d i n t e r e s t ,
from th e p e o p le o f th e U n ite d S t a t e s f o r c e r t i f i c a t e s o f in d e b te d n e s s o f th e
U nited S t a t e s , d e s ig n a te d 7 /8 p e r c e n t T re a s u ry C e r t i f i c a t e s o f In d e b te d n e s s o f
S e rie s D-0L944* i n exchange f o r T re a su ry C e r t i f i c a t e s o f In d e b te d n e s s o f S e r ie s
B-1943* m a tu rin g A ugust 1 , 1943* I n a d d i t i o n > $ 9 0 0 ,0 0 0 ,0 0 0 , o r t h e r e a b o u ts , o f
the new c e r t i f i c a t e s a r e o f f e r e d f o r s u b s c r i p t i o n f o r t h e i r own a c c o u n t b y
com m ercial b a n k s, w h ich a r e d e f in e d f o r t h i s p u rp o se as banks a c c e p tin g demand
d ep o sits# ,
I I ,.
DESCRIPTION OF CERTIFICATES
1 , The c e r t i f i c a t e s w i l l be d a te d A ugust 2 , 1943* and w i l l b e a r i n t e r e s t from
th a t d a t e 'a t the, r a t e o f 7 /8 p e r c e n t per- annum, p a y a b le on a se m ia n n u a l b a s i s on
F eb ru ary 1 and A u g u st 1 , 1944* They w i l l m a tu re A ugust 1, 1944* and w i l l n o t be
s u b je c t to c a l l f o r re d e m p tio n p r i o r to m a tu r ity #
)%
2# The incom e d e r iv e d from th e c e r t i f i c a t e s s h a l l be s u b j e c t to a l l F e d e r a l
ta x e s , now o r h e r e a f t e r imposed#. The c e r t i f i c a t e s s h a l l be s u b j e c t to e s t a t e ,
in h e r i ta n c e , g i f t o r o th e r e x c is e t a x e s , whether* 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 ta x a t i o n now o r h e r e a f t e r im posed on th e p r i n c i p a l o r i n t e r e s t
th e re o f by any S t a t e , o r any o f th e p o s s e s s io n s o f th e U n ite d S t a t e s , o r by any
lo c a l ta x in g a u th o rity # .
3* The c e r t i f i c a t e s w i l l be a c c e p ta b le t o s e c u r e d e p o s it s o f p u b li c moneys#
They w i l l n o t be a c c e p ta b le i n paym ent o f ta x e s#
4* B e a r e r . c e r t i f i c a t e s w ith i n t e r e s t coupons a t ta c h e d w i l l be is s u e d i n
denom inations o f
and
The c e r
t i f i c a t e s w i l l n o t be is s u e d i n r e g i s t e r e d form#
$1,000, $5*000* $10,000, $100,000
$1,000,000#
5* The c e r t i f i c a t e s w i l l be s u b j e c t to t h e g e n e r a l r e g u l a t i o n s o f t h e T reasury
D epartm ent, now o r h e r e a f t e r p r e s c r i b e d , g o v e rn in g U n ite d S t a t e s c e r t i f i c a t e s #
—2 II I * .. SUBSCRIPTION AND ALLOTMENT
I f ■S u b s c r ip tio n s i s i l l . be r e c e iv e d a t t h e F e d e r a l R eserv e Banks and B ran ch es
I and a t th e T re a su ry D ep artm en t,. W ashington* S u b s c r ib e r s m ust a g re e n o t to s e l l o r
|r o th e rw is e d is p o s e o f t h e i r s u b s c r i p t i o n s , o r o f th e s e c u r i t i e s w hich may be
I a l l o t t e d t h e r e o n , - p r i o r to th e c l o s i n g o f th e s u b s c r i p t i o n books* B anking i n r
I s t i t u t i o n s g e n e r a l l y may s u b m it exchange s u b s c r i p t i o n s f o r a c c o u n t o f c u s to m e rs,
| b u t o n ly th e F e d e r a l R eserv e Banks and t h e T re a su ry D epartm ent a r e a u th o r iz e d to
t a c t as o f f i c i a l ag en c ies,-.- O th e rs -than b a n k in g i n s t i t u t i o n s w i l l n o t be p e r m itte d
I to e n t e r s u b s c r i p t i o n s e x c e p t f o r t h e i r own a c c o u n t,' Cash s u b s c r i p t i o n s from
I com m ercial banks f o r t h e i r own a c c o u n t w i l l be r e c e iv e d w ith o u t d e p o s it b u t w i l l
|b e r e s t r i c t e d i n e a c h c a s e to an amount n o t e x c e e d in g t h e com bined c a p i t a l ,
[ s u r p l u s and u n d iv id e d p r o f i t s , o r 5 p e r c e n t o f th e t o t a l d e p o s it s , w h ich ev e r i s
I g r e a t e r , , o f th e s u b s c r ib in g b a n k .
2* The S e c r e t a r y o f th e T re a su ry r e s e r v e s th e r i g h t to r e j e c t any su b sc rip * E t io n , i n w hole o r i n p a r t , to a l l o t l e s s th a n th e amount o f c e r t i f i c a t e s a p p lie d
I f o r , and to c lo s e t h e books a s to any o r a l l s u b s c r i p t i o n s a t an y tim e w ith o u t
n o ti c e ; and any a c t i o n he may ta k e i n th e s e r e s p e c t s s h a l l be f i n a l . S u b je c t to
th e s e r e s e r v a t i o n s , s u b s c r i p t i o n s i n paym ent o f w hich T re a s u ry C e r t i f i c a t e s o f
[In d e b te d n e s s o f ^ S e r ie s B^1943 a r e te n d e r e d w i l l be a l l o t t e d in f u l l * A ll c a sh
s u b s c r i p t i o n s w i l l b e a l l o t t e d on an e q u a l p e r c e n ta g e b a s i s , to be p u b l i c l y
I announced* A llo tm e n t n o t i c e s w i l l be s e n t o u t p ro m p tly upon a llo tm e n t*
IV*
PAYMENT
1 , Payment a t p a r and a c c ru e d i n t e r e s t , i f a n y , f o r c e r t i f i c a t e s a l l o t t e d
Ion c a s h s u b s c r i p t i o n s h e re u n d e r m u st be made o r c o m p lete d on o r b e f o r e .
j August 2,. 194-3, o r on l a t e r a l l p t m e p t . Any q u a l i f i e d d e p o s it a r y w i l l be p e r I p i t t e d to make paym ent by c r e d i t f o r c e r t i f i c a t e s a l l o t t e d t o i t up to any amount
[ f o r w hich i t s h a l l be q u a l i f i e d i n e x c e ss 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 eserv e Bank o f i t s D i s t r i c t , T re a su ry C e r t i f i c a t e s o f I n d e b te d jr®s s o f S e r i e s B-»194 3 , m a tu rin g A ugust 1 , 1943, w i l l be a c c e p te d a t p a r i n paym ent
■for any c e r t i f i c a t e s s u b s c r ib e d f o r and a l l o t t e d , and s h o u ld accom pany th e
| s u b s c r ip ti o n ,
V*
GENERAL PRDVESIGNS
1 ,- As f i s c a l a g e n ts o f th e U n ite d S t a t e s , F e d e r a l R eserv e Banks a r e
a u th o riz e d and r e q u e s te d to r e c e i v e s u b s c r i p t i o n s , to make a l lo tm e n ts on th e
| b asis and up to th e am ounts i n d i c a t e d by th e S e c r e t a r y of t h e T re a s u ry to th e
F ed eral R eserv e Banks o f th e r e s p e c t i v e d i s t r i c t s , to i s s u e a l lo tm e n t n o t i c e s ,
to re c e iv e ^ p a y m e n t f o r c e r t i f i c a t e s a l l o t t e d , t o make d e l i v e r y o f c e r t i f i c a t e s
I|U f u l l - p a i d s u b s c r i p t i o n s a l l o t t e d , , and th e y may i s s u e i n t e r i m r e c e i p t s pend
ing d e l i v e r y o f th e d e f i n i t i v e c e r t i f i c a t e s . R f.
2,-v -The S e c r e t a r y o f th e T re a su ry may a t a n y tim e , o r from tim e to tim e ,
p r e s c r i b e s u p p le m e n ta l o r am en d ato ry r u l e s and r e g u l a t i o n s g o v e rn in g th e o f f e r | ln&,; w hich w i l l be com m unicated p ro m p tly to th e F e d e r a l R eserv e Banks*
HENEX MORGENTHAU, JRt ,
S e c r e t a r y o f th e T re a s u ry .
in denominations of $1,000 to $1,000,000, and in coupon
form only.
None of these secu rities w ill be available for sub
scription by commercial banks for th e ir own account during
the period of the Drive.
However, shortly a fte r the Drive
term inates, a 2 per cent bond and a 7/8 per cent c e rtific a te
of indebtedness w ill be offered for subscription by commercial
banks for th e ir own account—^3
<. T n lo
^
. ^
P r w * - t- o
9> m k
request commercial banks not to buy fa
and^will request the^market not to trade in ^ ^ ^ ^ o f thes<a—
.
fe’
..
/
secu rities offered in the Drive u n til the books for bank
subscriptions are closed.
I-u uw l^^cTavoid unnecessary
tran sfers of funds from one lo cality to another, the Treasury
would prejjer to have a ll subscriptions by corporations and
firms entered and paid for through the banking institutions
where the funds are located.
The secu rities to be sold under the direction of
the War Finance Committees w ill consist of:
1.
Series E Savings Bopds
2.
Series F and Gr Savings Bonds
3.
Series C Savings Notes
4.
2-1/2$ bondsjof 1964-69
5* 2$ boncbjfof 1 9 5 1 -5 3
6.
7/6$ C ertific^tesof Indebtedness
The 2-1/2$ bond w ill be dated September 15, 194-3* due
December 1 5 , 19 6 9 * callab le December 15, 1964, and w ill be
issued in coupon or registered form at the option of the
buyers in denominations from $500 to $1,000,000,
Commercial
banks, which are defined for th is purpose as banks accepting l
-
demand deposits, w ill not be permitted to own these bonds
u n til September 1 5 , 1953*
The 2$ bond w ill be dated September 15, 1943* due
September 1 5 , 1953* callab le September 15, 1951* and will he
issued in coupon or registered form at the option of the
buyers in denominations from $500 to $1,000,000.
The 7/6$ C ertificates of Indebtedness w ill be dated
September 15* 1943* due September 1, 1944, and w ill be issued
rx h
u
S e c r e t a r y o f t h e T r e a s u r y H enry M o rg en th au , J r .^ announced to d a y
t h a t th e g o a l s e t f o r th e T h ird War Loan D r iv e , s t a r t i n g S ep tem b er 9,
w i l l be $15 b i l l i o n .
IM
Mr. M orgenthau s a i d t h a t th e e n t i r e $15 b i l l i o n w i l l b e s o ld t o
i n d i v i d u a l i n v e s t o r s , c o r p o r a t i o n s , in s u r a n c e co m p an ies and o t h e r n o n -
b a n k in g s o u r c e s .
^
T
U
J
O
V
I
’’T h is g o a ly " h e s a i d , ’’was d e te rm in e d b y " 3 s l T r e a s u r y o f f i c i a l s a f t e r
' •* rtS^Vir r - A A
- w-x^****
c h a irm e n o f th e S t a t e War F in a n c e Committees*, and w»4Ja»
o f f i c i a l s o f th e F e d e r a l R e s e rv e S ystem and t h e A m erican B an k ers A sso c ia tio n .
G e ttin g t h i s am ount o f money w i l l b e a huge t a s k , and w i l l r e p r e s e n t th e
l a r g e s t f i n a n c i n g program i n th e h i s t o r y o f t h e w o rld . \
"The jo b o f r a i s i n g t h i s $15 b i l l i o n , ” h e s a i d , ’’w i l l be h an d led by
W?r F in a n c e C om m ittees o f each s t a t e , and t h e bonds w i l l be s o ld l a r g e l y by
h u n d re d s o f th o u s a n d s o f p a t r i o t i c v o l u n t e e r s a le s m e n , who^ a v ^^ a l r e ^ d ^^ a ^ a ^
p la n s t o c o n c e n tr a te on h o u s e - to - h o u s e s e l l i n g , s in c e a m a jo r c o n s id e ra tio n
J
i s in c r e a s i n g th e num ber o f p e o p le who a r e b u y in g w ar b o n d s”Z
The s e c u r i t i e s t o b e o f f e r e d i n th e T h ird War L o an , i t was p o in ted out, j
w i l l b e e s s e n t i a l l y t h e same ty p e s a s th o s e s o ld i n t h e Second War Loan..
y
y
y
y ,.^
/
TREASURYDEPARTMENT
Washington
FORRELEASE, MORNINGNEWSPAPERS,
Thursday,
July
22,
Press Service
15^5»_______ ___
^°* 3 7 ~ ° 9
Secretary of the Treasury Henry Morgenthau, Jr., announced
today that the goal set for the Third' War Loan Drive, starting
September 9> will be $15 billion*
Mr# M o r g e n t h a u s a i d t h a t t h e e n t i r e
to in d i v i d u a l i n v e s t o r s ,
corporations,
$15 b i l l i o n w i l l b e s o l d
i n s u r a n c e com panies and
o th e r non-banking so u rc e s,
it T h i s g o a l a n d t h e T h i r d War Loan p r o g r a m , n ' h e . s a i d ,
,rwas
d e te rm in e d by T re a s u ry o f f i c i a l s a f t e r r e c e i v i n g recom m endations
f r o m chail*men o f t h e S t a t e War F i n a n c e C o m m i t t e e s ,
and o f f i c i a l s
of t h e F e d e r a l R e s e rv e System and th e American B a n k e rs A s s o c i a t i o n ,
G e t t i n g t h i s am o u n t o f money w i l l b e a h u g e t a s k ,
and w i l l r e p r e
sen t th e l a r g e s t f i n a n c i n g program in t h e ^ h i s t o r y of t h e w orld.
#■The j o b o f r a i s i n g t h i s
$15 b i l l i o n , h e
said ,
h a n d l e d b y War F i n a n c e C o m m i t t e e s o f e a o n s t a t e ,
ttw i l l be
and t h e bonds
w i l l be s o ld l a r g e l y by h u ndreds of th o u sa n d s of p a t r i o t i c
v o l u n t e e r salesm en,
on h o u s e - t o - h o u s e
who a l r e a d y h a v e made p l a n s t o c o n c e n t r a t e
se llin g ,
s in c e a m ajor c o n s i d e r a t i o n , i s
in
c r e a s i n g t h e n u m b e r o f p e o p l e who a r e b u y i n g War B o n d s , ”
The securities to be offered in the Third War Loan, it
was pointed-out, will be essentially the same types as those
sold in the Second War Loan,
* # # *
•
-
2 -
The s e c u r i t i e s t o b e s o l d u n d e r t h e d i r e c t i o n o f t h e War
F in an ce Committees w i l l c o n s i s t o f :
' ;
1.
2*
•3 ,
4*
5.
6*
S e r i e s E S a v in g s Bonds
S e r i e s F a n d G S a v i n g s Bonds
S e r ie s C Savings N otes
2 - 1 / 2$ B o n d s o f 1 9 6 4 - 6 9
2$ Bonds o f 1951-53
7/ 6$ C e r t i f i c a t e s o f I n d e b t e d n e s s ^
The 2 -1 /2 $ Bond w i l l b e d a t e d S e p t e m b e r 15, 1943, due
D e c e m b e r 15, 1969, c a l l a b l e D e c e m b e r 15, .3-964, a n d w i l l b e
i s s u e d i n coupon o r r e g i s t e r e d form a t th e o p t i o n of th e b u y e rs
i n d e n o m i n a t i o n s f r o m $500 t o $ 1 , 0 0 0 , 0 0 0 .
Com m ercial b a n k s ,
w h i c h a r e d e f i n e d f o r t h i s p u r p o s e a s b a n k s a c c e p t i n g demand
d e p o s i t s , ' w i l l n o t b e p e r m i t t e d t o own t h e s e Bonds u n t i l S e p
t e m b e r 15 , 1953*
Th e' 2$ Bond w i l l bp d a t e d S e p t e m b e r 1 5 , 1 9 4 3 , due S e p t e m b e r
15, 1 9 5 3 , c a l l a b l e S e p t e m b e r 1 5 , 1 9 5 1 , a n d w i l l b e i s s u e d i n
coupon o r r e g i s t e r e d form a t t h e o p t i o n o f th e b u y e r s i n d e
n o m i n a t i o n s f r o m $500 t o $ 1 , 000 , 000 .
The 7 / 6 $ C e r t i f i c a t e s o f I n d e b t e d n e s s w i l l b e d a t e d
S e p t e m b e r 15, 1 9 4 3 , d u e S e p t e m b e r 1 , ' 1 9 4 4 , a n d w i l l b e i s s u e d
i n d e n o m i n a t i o n s o f $ 1 ,0 0 0 t o $ 1 , 000 , 000 , a n d i n c o u p o n f o r m
only.
N one,of th e s e s e c u r i t i e s w i l l be a v a i l a b l e f o r s u b s c r i p t i o n
by c o m m e r c i a l b a n k s ' f o r t h e i r own a c c o u n t d u r i n g t h e p e r i o d o f
the D riv e .
H o w ev er , s h o r t l y a f t e r t h e D r i v e t e r m i n a t e s , a
2 p e r c e n t Bbnd a n d a 7 / 6 p e r c e n t C e r t i f i c a t e o f I n d e b t e d n e s s
w i l l be o f f e r e d f o r s u b s c r i p t i o n by com m ercial banks f o r t h e i r
own a c c o u n t .
In o r d e r to c o n fin e a l l s a le s in th e D rive to
n on-banking s o u rc e s , t h e 'T r e a s u r y w i l l r e q u e s t com m ercial banks
not to buy i n th e m a rk e t, and w i l l r e q u e s t th e m ark et n o t to
tra d e in , e i t h e r of th e se s e c u r i t i e s o f f e r e d in th e D rive u n t i l
the books f o r bank s u b s c r i p t i o n s a r e c l o s e d ,
To a v o i d u n n e c e s s a r y t r a n s f e r s o f f u n d s f r o m one l o c a l i t y
t o a n o t h e r , t h e T r e a s u r y w o u l d p r e f e r .t o h a v e a l l s u b s c r i p t i o n s
by c o r p o r a t i o n s a n d f i r m s e n t e r e d a n d p a i d f o r t h r o u g h t h e
b a n k in g i n s t i t u t i o n s where t h e fu n d s a r e .lo c a te d .
0O0
- 3 f o r such b i l l s , w h e th e r on o r i g i n a l is s u e , o r on s u b s e q u e n t p u r c h a s e , an d th e amounj
a c t u a l l y r e c e iv 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 in g th e ta x a b le
y e a r f o r w hich th e r e t u r n i s m ade, a s o r d i n a r y g a in o r l o s s .
T re a s u ry D ep artm en t C ir c u la r 'N o . 4 1 8 , a s am ended, and t h i s n o t i c e , p re - j
s c r i b e th e te rm s o f th e T re a s u r y b i l l s an d g o v e rn th e c o n d i tio n s o f t h e i r is s u e . ;
C o p ies o f th e c i r c u l a r may b e o b ta in e d from an y F e d e r a l R e se rv e Bank o r B ranch.
-
2
-
R eserv e Banks and B ra n c h e s, f o llo w in g w hich p u b li c announcem ent w i l l be made by the
S e c r e t a r y o f t h e T re a s u ry o f th e am ount and p r i c e ra n g e o f a c c e p te d b i d s .
Those
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T re a s u r y e x o r e s s ly r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any or j
a l l t e n d e r s , i n w h o le o r i n p a r t , an d h i s a c t i o n i n an y such r e s p e c t s h a l l be f in a l
S u b je c t t o th e s e r e s e r v a t i o n s , t e n d e r s f o r $ 1 0 0 ,0 0 0 o r l e s s from an y one b id d e r a t j
99.905 e n t e r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Paym ent o f acceptet
te n d e r s a t th e p r i c e s o f f e r e d m u st b e made o r c o m p le te d a t th e F e d e r a l R eserve Bank!
i n cash o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s on
J u l y 2 8 , 1943
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
th 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 l l s , s h a l l n o t h av e an y e x e m p tio n , a s such,
and l o s s from th 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 tm e n t, a s su c h , u n d e r 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 te d .
The
b i l l s s h a l l b e s u b j e c t to 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 is e ta x e s , whether;
F e d e r a l o r S t a t e , b u t s h a l l b e exem pt 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 th 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 an 3r S t a t e , o r ap y o f th e p o s s e s s io n s of
th e U n ite d S t a t e s , o r by an y l o c a l t a x in g a u t h o r i t y .
F o r p u rp o s e s o f ta x a tio n the I
am ount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U n ite d S tates s
s h a l l be c o n s id e r e d to b e i n t e r e s t .
U nder S e c tio n s 42 and 117 (a ) ( l ) o f th e
I n t e r n a l Revenue Code, a s amended by S e c tio n 115 o f th e Revenue A ct o f 1941, the
am ount o f d is c o u n t a t w hich b i l l s is s u e d h e r e u n d e r a r e s o ld s h a l l n o t be considered i
to a c c ru e u n t i l such b i l l s s h a l l b e s o l d , redeem ed o r o th e r w is e d is p o s e d o f , and
such 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 a s c a p i t a l a s s e t s .
owner o f T re a s u ry b i l l s
A c c o rd in g ly , th e
(o ^ h e r th a n l i f e in s u r a n c e com panies) is s u e d h e re u n d e r
n eed in c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p r i c e paid
p
m
TREASURY DEPARTMENT
5
9
* 7
W ash in g to n
FOR RELEASE, MORNING NEWSPAPERS,
F rid a y , J u ly 23^ 3=263-
The S e c r e t a r y o f t h e T r e a s u r y , b y t h i s p u b li c n o t i c e , i n v i t e s te n d e r s
f o r $ ?.yOQOtOOOrQOO * o r th e r e a b o u t s , o f
9 2 - - d a y T re a s u r y b i l l s ,
to b e is s u e d
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i ^ e d - p r i c e b id d in g a s h e r e i n a f t e r pro
v id e d ,
The b i l l s o f t h i s s e r i e s w i l l b e d a te d
m a tu re
1
in te re s t.
October 28, 1943
J u ly 28^ 1943
and w i l l
ii'iii
» when t h e f a c e am ount w i l l be p a y a b le w ith o u t
---------i g t
---------g g
_ m
They w i l l b e i s s u e d i n b e a r e r form o n ly , an d i n d e n o m in a tio n s o f $1,000,
# 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , an d $ 1 ,0 0 0 ,0 0 0 ( m a t u r ity v a l u e ) .
liichi
T en d e rs w i l l be r e c e i v e d a t F e d e r a l R e se rv e Banks an d B ran ch e s up to the Bill
Monday, J u l y 26, 1943--------- •
dqS
T en d e rs w i l l n o t b e r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n . Each tender
c l o s i n g h o u r , two o ’ c lo c k d . m ., E a s te r n War tim e,,
m u st be f o r an ev en m u l t i p l e o f $ 1 ,0 0 0 , and th e p r i c e o f f e r e d m u st be ex p ressed
Iters]
on th e b a s i s o f 1 0 0 , w ith n o t m ore th a n t h r e e d e c im a ls , e , g . , 9 9 .9 2 5 .
may n o t b e u s e d .
F ractio n s
I t i s u rg e d t h a t te n d e r s b e made on th e p r i n t e d form s and f o r - -,
w ard ed i n th e s p e c i a l e n v e lo p e s w h ich w i l l b e s u p p lie d b y F e d e r a l R eserv e Banks
i f c rs
Ip a
o r B ran ch 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 b e r e c e iv e d w ith 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
; C:'V. 1 / .
Y
.
t r u s t c o m p a n ie s/a n d from r e s p o n s i b l e an d r e c o g n is e d d e a l e r s i n in v e s tm e n t s e c u n ^ l
tie s .
T en d ers’ iro m o t h e r s m ust b e acco m p an ied by p aym ent o f 2 p e r c e n t o f th e facej
am ount o f T r e a s u ry b i l l s a p p l ie d f o r , u n l e s s th e t e n d e r s a r e acco m p an ied by an
e x p r e s s g u a r a n ty o f paym ent b y an i n c o r p o r a t e d bank o r t r u s t company.
Im 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 b e opened a t th e Federj*
TREASURY DEPARTMENT
W a s h in g to n
The S e c r e t a r y
in v ite s
te n d e rs
T re a su ry b i l l s ,
p e titiv e
b ills
and
o f th is
FOR RELEASE, MORNING NEWSPAPERS,
F rid a y , J u ly 23, 1943.
; v -2 1 -4 3
;--------o f th e T r e a s u r y ,
f o r $ 1 ,0 0 0 ,0 0 0 ,0 0 0 ,
to
be
is s u e d
w ill
1 9 4 3 , w hen t h e
w ith o u t
T hey w ill
and in
d e n o m in a tio n s
$ 5 0 0 ,0 0 0 ,
o f 5 2 - day
a s h e r e i n a f t e r p ro v id e d *
be d a te d
m a tu re O c to b e r 2 8 ,
in te re s t*
o r th e re a b o u ts ,
o n a d i s c o u n t b a s i s u n d e r com
f ix e d - p r ic e , b id d in g
s e rie s
by th is ,p u b lic A n o tic e ,
J u ly
fa c e
b e» Issu ed
28,
1943,
The
and w ill
am ount w i l l b e p a y a b le
in
b e a r e r fo rm o n ly ,
o f $ 1 ,0 0 0 ,: $ 5 ,0 0 0 ,. $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 ,
an d $ 1 ,0 0 0 ,0 0 0
(m a tu rity
v a lu e )•
T e n d e rs w i l l be r e c e iv e d a t F e d e ra l R e se rv e B anks and
B r a n c h e s u p t o t h e c l o s i n g h o u r , tw o o ’ c l o c k p , m . , E a s t e r n
W ar T i m e , M o n d a y , J u l y 2 6 , 1 9 4 3 *
T e n d e rs w ill 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 e p a r tm e n t, W a s h in g to n *
E ach te n d e r
m ust be f o r an e v en m u l tip l e o f $ 1 ,0 0 0 , and th e p r i c e o f f e r e d
m u s t b e 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 n o t m o re th a n
t h r e e d e c i m a l s , e* g . , 9 9 * 9 2 5 ,
F r a c t i o n s m ay n o t b e u s e d . I t
i s u r g e d t h a t t e n d e r s b e m ade o n t h e p r i n t e d fo rm s a n d f o r
w a rd e d . i n t h e s p e c i a l e n v e l o p e s w h i c h w i l l b e s u p p l i e d b y
F e d e ra l R e se rv e B anks o r B ra 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 .
le n d e rs w ill be r e c e iv e d w ith o u t d e p o s it fro m in c o r
p o r a t e d b a n k s .a n d t r u s t c o m p a n ie s a n d fro m r e s p o n s i b l e a n d
re c o g n iz e d d e a l e r s in in v e s tm e n t s e c u r i t i e s .
T e n d e rs fro m
o t h e r s m u st b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f th e
fa c e am ount o f T re a s u ry b i l l s a p p lie d f o r , u n le s s th e te n d e rs
a r e a c c o m p a n ie d b y an e x p r e s s g u a r a n t y o f p a y m e n t b y a n i n
c o r p o r a te d b an k o r t r u s t com pany.
Im m e d ia te ly a f t e r th e c lo s in g h o u r , te n d e r s w i l l b e
opened a t th e F e d e ra l R e se rv e B anks and B ra n c h e s , f o llo w in g
w h ic h p u b l i c a n n o u n c e m e n t w i l l b e m ade b y t h e S e c r e t a r y o f
th e T r e a s u r y o f th e am o u n t a n d p r i c e r a n g e o f a c c e p te d b i d s .
T hose ^ s u b m ittin g te n d e r s w i l l b e a d v is e d o f th e a c c e p ta n c e
or re je c tio n th e re o f.
The S e c r e t a r y o f th 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 to a c c e p t o r r e j e c t any o r a l l te n d e r s , in
w h o le o r i n p a r t , a n d h i s a c t i o n i n a n y s u c h r e s p e c t s h a l l b e
3 7 -7 0
( O v e r)
2
for |100,000 or
fixed-price
tenders
ac c-t
d
x
final"* ‘S u b i e c t t o th e 's e ''R e s e r v a t i o n s ,, t e n d e r s
less fro m eny one b i d d e r a t 9 9 .9 0 5 e n t e r e d on a
b a s is w i l l be a c c e p te d in f u l l . Payment o f
a t th e p r ic e s o f f e r e d m ust h e made o r
R eserve Bank in ,,ca sh o r o th e r im m ed iately s v a u a w i
J u ly
2 8 ,' 1 9 4 3 . '
,
_
^
,
...
The income d e riv e d from T re a su ry hills, w h e th e r in te r e s t^ .
o r g a in from th e
s a l e 'o r
o th e r 8 d isp o sitio n * * o f ° Tre a su ry h i l l s s h a l l n o t have_ any sp e c ia l
2 K
3 ? #* K
ssa t
S ffli
sS aU
th e p r in c i p a l o r i n t e r e s t
th e re o f by any S ta te ,
o r any
p o s s e s s io n s o f th e U n i t e d J ^ t e s ^ o r
w S ic h r T r f a s u r y r b i n s ° a r e o r i g i n a l l y
s h a l l be c o n s id e r e d ' to b e i n t e r e s t .
117
(f)
(1 )
of
th e
I n t e r n a l . R evenue
at
s o ld
^ ^ ^ i t e d S ta te s
U n d er S e c tio n s 42 and
^ ^ o f ^ i s c o L t 'a t
tion 1 1 5 of t h e R e v e n u e A c t o f 1 9 4 1 , . .th e r m o u n c o i ^
w h ic h b i l l s .is s u e d h e r e u n d e r a r e
to a c c ru e u n t i l such b i l l s s h a ll
w is e d is p o s e d o f , a n d s u c h b i l l s
s o ld s h a l l n o b be c o n s i
b e s o ld , red ee m ed
® ne. e x c l u d e d ^ : r
or -other-'
consideraTreasury
h ereunder
t i o n as c a p ita l, a s s e t s * A ccordingly?
, .. RU.o
b i l l s ( o th e r th a n l i f e in s u ra n c e com panies)
beneed in c lu d e in h is income
on o r i 'S n a l issue
tween th e p r ic e p a id f o r such b i l l s ,
° ® Ceived
o r on su b se q u e n t p u rc h a s e , and
th e t a x a b l e
pi tViPT* udoii s a l e o r red em p tio n a t m a tu r ity
o
, ■
y e a r ? o r w S ic h ^ h e , r e t u r n i s m a d e , ,a s o r d in a r y g a in o r lo s s .
T r e a s u r y B e p a f t m e n t C i r c u l a r No. 4 1 8 , a s n « e n d « d , and t h i s
notice 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 govern
t h e c o n d i t i o n s o f t h e i r ■i s s u e .. C o p ie s f
o b t a i n e d fro m , any F e d e r a l R e s e rv e Ban*, or. B r a n c h .
TOR IMMEDIATE RELEASE
July SO*. 1 9.42_______
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorised for entry for consumption under the quotas
for the 12 months commencing October 1, 1942§ provided for in the InterAmerican Coffee Agreement* proclaimed by the President on April 15* 1941, as
follows:
Country of
Production
Quota Quantity
(pounds) 1 /
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
2,172*359,753
735,840*277
46,718*031
18*692,451
25,752*947
35*041,235
140,776*585
134,978,598
64*236,136
4,278*467
111*292,661
45*818*819
5,839*588
90*021*490
Non~eignatory Countries:
)
B ritish Itopire, except
)
Aden and Canada
)
Kingdom of the Netherlands)
and i t s possessions
) 75*969*017
Aden* Yemen, and Saudi
)
Arabia
)
Other countries not signa-)
tories of the Inter)
American Coffee Agree- )
ment
)
1J
Quotas revised as of March 5* 1943*
Authorized for entry
for consumption
As of (Bate) : (Pounds).
July 10, 1943
if
R
■
«
R
R
R
R
R
R
R
R
R
*
546,604,010
477,608,458
38,326,840
9,932,579
17*389*244
17,489,759
111,730,873
75*803*398
53*919,269
4*168,398
55*660*595
22,771,307
303,771
60,460,649
32*527*076
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T hursday, J u ly 2 5 j 1943,
Tress S e r v ic e
37-71
The b u re a u o f Customs announced to d a y p r e lim in a r y f i g u r e s show ing th e Quan
t i t i e s 6 f c o f f e e a u t h o r i z e d f o r e n tr y f o r co n su m p tio n u n d e r th e q u o ta s f o r th e
12 m onths commencing O c to b e r 1, 1942, p ro v id e d f o r i n th e Inter*-A m erican C o ffe e
A greem ent, p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941, as fo llo w s ?
C o untry o f
P ro d u c tio n
S ig n a to ry C o u n tr ie s :
B ra z il
C olom bia
C o s ta R ic a
Cuba
D om inican R ep u b lic
E cuador
E l S a lv a d o r
G uatem ala
H a iti
H onduras
Mexico
N ic a ra g u a
P eru
V en ezu ela
?
?
Q pota Q u a n tity
(pou n ds) 1 /
.♦•) ■
j§
1/
Q uotas r e v i s e d a s o f March 5 , 1943,
A u th o riz e d f o r e n tr y
f o r co n su m p tio n
As o f (D ate)
?
(Pounds)
•
2 ,1 7 2 ,3 5 9 ,7 5 3
7 3 5 ,8 4 0 ,2 7 7
4 6 ,7 1 8 ,0 3 1
1 8 ,6 9 2 ,4 5 1 .
2 5 ,7 5 2 ,9 4 7
3 5 ,0 4 1 ,2 3 5
1 4 0 ,7 7 6 ,5 8 5
1 2 4 ,9 7 8 ,5 9 8
6 4 ,2 3 6 ,1 3 6
4 ,2 7 8 ,4 6 7
111,292,^661
4 5 ,8 1 8 ,8 1 9
5 ,8 3 9 ,5 8 8
9 0 ,0 2 1 ,4 9 0
N o n -sig n a to ry C o u n trie s ?
B r i t i s h Em pire, e x c e p t
)
Aden and Canada
)
Kingdom o f th e N e th e r la n d s )
) 7 5 ,9 6 9 ,0 1 7
and i t s p o s s e s s io n s
Aden, Yemen, and S audi
)
A ra b ia
)
O th er c o u n t r i e s n o t s ig n a - )
t o r i e s o f th e I n t e r )
A m erican C o ffe e A g ree- ) .
ment
)
:
:
:
it
it
it
rt
it
tt
tt
tt
it
it
tt
it
ft
5 4 6 ,6 0 4 ,0 1 0
4 7 7 ,6 0 8 ,4 5 8
3 8 ,3 2 6 ,8 4 0
9 ,9 3 2 ,5 7 9
1 7 ,3 8 9 ,2 4 4
17,489*759
1 1 1 ,7 3 0 ,8 7 3
7 5 ,8 0 3 ,3 9 8
5 3 ,9 1 9 ,2 6 9
4 ,1 6 8 ,3 9 8
5 5 ,6 6 0 ,5 9 5
2 2 ,7 7 1 ,3 0 7
303 ,7 7 1
6 0 ,4 6 0 ,6 4 9
n
3 2 ,5 2 7 ,0 7 6
J u ly 10, 1943
1REASUHT DSPARWafT
Washington
FOR RSLSASB, MORNIKG W8WSPAPK8S,
Fridar. July 83. 1943,_________
Prmte Swrwle*
37"/w
Secretary o f the Treasury Morgenthau announced la s t night that ths
subscription books for the receipt of cash subaeriptiona to the current
offering of 7/B percent Treasury C ertificates of Indebtedness of Series
D-1944 closed at the elese of business Thursday, July 2 2 .
Cash sub
scriptions for th is is s e s o f certifica tes were restricted to eoemercial
banks for thoir own account*
The subscription books w ill close a t the close of bueinoes tonight,
July 23, for tho roeoipt o f subscriptions in payment of which treasury
C ertificates of Indebtedness of Series B-1943, naturing August 1, 1943,
are tendered.
Subscriptions o f either class addressed to a Federal Reserve Bank
or Brandi, or to the Treasury Department, end placed in the n ail before
12 o'clock midnight o f the respective closing days w ill be considered
as having basn entered before the close o f the subscription books.
Announcement of tho amount o f cash and exchange subscriptions, and
tho basis o f allotment for cash subscriptions, w ill probably be mads on
Tuesday, July 27*
TREASURY DEPARTMENT
W ash in g to n
FOR RELEASE, MORNING NEWSPAPERS
F rid a y . J u ly 2 3 . 1943.
P r e s s S e rv ic e
No. 37-72
S e c r e t a r y o f th e T r e a s u r y Mor gent-hay. announced l a s t n ig h t t h a t th e
s u b s c r ip ti o n books f o r th e r e c e i p t o f c a sh s u b s c r i p t i o n s t o th e c u r r e n t
o f f e r in g o f 7 /8 p e r c e n t T re a s u ry C e r t i f i c a t e s o f I n d e b te d n e s s o f S e r ie s
D-1944 c lo s e d a t th e c l o s e o f b u s in e s s T h u rsd a y , J u ly 22.
Cash sub
s c r i p t i o n s f o r t h i s i s s u e o f c e r t i f i c a t e s v\/ere r e s t r i c t e d t o co m m ercial
banks f o r t h e i r own a c c o u n t.
' tj
The s\ib s c r i p t io n books w i l l c l o s e . a t th e c lo s e o f b u s in e s s t o n i g h t ,
J u ly 2 3 , f o r t h e r e c e i p t o f s u b s c r i p t i o n s i n paym ent o f w hich T re a s u ry
C e r t i f i c a t e s o f I n d e b te d n e s s o f S e r ie s B -1943; m a tu rin g A ugust 1 , 1943;
are te n d e r e d .
S u b s c r ip tio n s o f e i t h e r c l a s s a d d r e s s e d t o a F e d e r a l R eserv e Bank
or B ran ch , o r t o th e T re a s u r y D e p artm en t, and p la c e d i p th e m a il b e f o r e
12 o ’ c lo c k m id n ig h t o f th e r e s p e c t i v e c l o s i n g d ay s w i l l be c o n s id e r e d
as h av in g b een e n t e r e d b e f o r e t h e c lo s e o f th 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 c a sh a n d exchange s u b s c r i p t i o n s , and
th e b a s is o f a l lo tm e n t f o r cash s u b s c r i p t i o n s , w i l l p r o b a b ly be made on
Tuesday, J u l y 27.
.2
R e*/
D
y /
y
ficeenfrly Fajimmii liir W. B. Youa^of the Navy^,informed
Secretary Morgenthau that the officers and en listsd men of the
Navy had increased their War Bond>ayor<^ 500 percent in^three
~"v
months from April to July* More than 277,000 Navy men are now
baying Bonds regularly at the rate of nearly $7,000,000 a month*
\
0
TREASURY DEPARTMENT
Washington
FOR SB&EASE, AITEHTOOIff NEWSPAPERS,
PRESS SERVICE
3 7-73
Th«rsdayr^i*ly""227~1945«
America's soldiers are hacking the attack with War Bonds to
the tone of 20 percent of their a n y pay*
They are not only proriding good competition for their th rifty
War Bond»buylng sailor buddies, hat they also are settin g an example
for cirilia n s on payroll seringa*
A report made to Secretary of the Treasury Morgenthan today
from the War Department War Bond Office revealed that 600,000 soldiers
are now buying a Bond a month, 750,000 are paying for a Bond every
three months, and 850,000 are saving enough for a Bond every fiv e months*
Per the three~monthsv period ending June 30, the to ta l allotted
by our soldiers for Bonds was $61,428,000*
Daring June, members of
the Army completed payments for 1,089,278 Bonds, 634,310 of which were
issued daring the fir s t week of July* The other 454,968 Bonds were
delivered during the second week of July*
the report^ shovjjlthat 1,473,363 enlisted men and officers were
allo tin g part of their pay for War Bonds la st April 30* / A month later
the total stood at 1,981,479*
The number of army payroll savers
leaped to 2,205,409 by June 30* The dollar value of these allotments
is now in excess of $23,000,000 a month or an average of about $10
a month for each participant*
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
date
TO
Secretary Morgenthau
FROM
Fred Stoith
July 22 , 1943
B artelt*s o ffic e secured information fo r me on the sa le of
War Bonds to so ld ie r s.
I t makes a good story.
I t mentions your
name, so would appreciate your clearing i t i f you think i t i s okay.
TREASURY DEPARTMENT
W a sh in g to n
FOR IMMEDIATE RELEASE,
F r i d a y , J u l y 2'3, 1943*
P re ss S e rv ic e
No, 3 7-73
A m e r i c a ’ s s o l d i e r s a r e b a c k i n g t h e a t t a c k w i t h War Bonds
t o t h e t u n e o f 20 p e r c e n t o f t h e i r Army p a y ,
T hey a r e n o t o n l y p r o v i d i n g good c o m p e t i t i o n f o r t h e i r
t h r i f t y War B o n d -b u y in g s a i l o r b u d d i e s , b u t t h e y a l s o a r e s e t
t i n g an exam ple f o r c i v i l i a n s on p a y r o l l s a v i n g s ,
A r e p o r t made t o S e c r e t a r y o f t h e T r e a s u r y K o r g e n th a u t o
day fro m t h e War D e p a r tm e n t War Bond O f f i c e r e v e a l e d t h a t
6 0 0 ,0 0 0 s o l d i e r s a r e now b u y in g a Bond a m onth, 7 5 0 ,0 0 0 a r e
p a y in g f o r a Bond e v e r y t h r e e m o n th s , a n d 8 5 0 ,0 0 0 a r e s a v i n g
enough f o r a Bond e v e r y f i v e m o n th s .
F o r t h e t h r e e '- m o n t h s ’ p e r i o d e n d in g Ju n e 30, "the t o t a l
a l l o t t e d by o u r s o l d i e r s f o r Bonds was $ 6 1 , 4 2 8 , 0 0 0 . D u rin g
J u n e , members o f t h e Army c o m p le te d p a y m e n ts f o r 1 ,0 8 9 ,2 7 8
B onds, 6 3 4 ,3 1 0 o f w h ic h w e re i s s u e d d u r i n g t h e f i r s t week o f
J u l y , The o t h e r 4 5 4 ,9 6 8 Bonds w ere d e l i v e r e d d u r i n g t h e s e c o n d
week o f J u l y v
I n d i c a t i v e o f t h e g ro w in g p r o g r e s s o f Army p a y r o l l s a v
i n g s , t h e r e p o r t shows t h a t 1 , 4 7 3 , 3 6 3 e n l i s t e d men a n d o f f i c e r s
w ere a l l o t t i n g p a r t o f t h e i r pa^z- f o r War Bonds l a s t A p r i l 30*
A m onth l a t e r t h e t o t a l s t o o d a t 1 ,9 8 1 ,4 7 9 * The num ber o f
Army p a y r o l l s a v e r s l e a p e d t o 2 , 2 0 5 ,4 0 9 by Ju n e 36* The d o l
l a r v a l u e o f t h e s e a l l o t m e n t s i s now i n e x c e s s o f $ 2 3 ,0 0 0 ,0 0 0
a m onth, o r an a v e r a g e o f a b o u t $10 a m onth f o r e a c h p a r t i c i
pant ,
R e a r A d m ir a l W, B. Young, P a y m a s te r G e n e r a l o f t h e Navy,
r e c e n t l y in f o r m e d S e c r e t a r y M o rg e n th au t h a t t h e o f f i c e r s and
e n l i s t e d men o f t h e Navy h a d i n c r e a s e d t h e i r War Bond p u r
c h a s e s 500 p e r c e n t i n t h e t h r e e m onths fro m A p r i l t o J u l y , More
t h a n 2 7 7 ,0 0 0 Navy men a r e now b u y in g Bonds r e g u l a r l y a t t h e
r a t e o f n e a r l y $ 7 ,0 0 0 ,0 0 0 a month#
4
Mfa*%-hpp
finn nf*
h ig h e s t awards f o r
O th er HsaMHpa»r aw ards p ro d u ced a t th e M int Tor th e
Navy s in c e P e a r l H arbor a r e :
Good Conduct m e d a lsj ha^'s ami
rftflnm i «
D is tin g u is h e d S e rv ic e M edals,
f o r e x c e p tio n a l
s e r v ic e i n i a i wfcy •n f
y so^niuulb 111 fry, combat o r
non-com bat.
D is tin g u is h e d F ly in g C ro s s e s , f o r e x t r a o r d in a r y
h ero ism o r ach iev em en t in f l i g h t , combat o r non-com bat.
China S e rv ic e M edals, f o r s e r v ic e in th e China
t h e a t e r betw een Septem ber 7 , 1957, and Septem ber 7 , 1939.
S i l v e r S ta r nnd In p rl b n rn , f o r g a l l a n t r y in a c tio n .
Many g o ld s t a r s f o r second d e c o r a tio n s .
M arksm anship m e d a ls, N aval R eserve M eaals, and
P re s id e n tia l u n it c ita tio n b a rs .
A ir M edals, rtlilii.i iln ■mT'l i il U f o r m e r ito r io u s s e rv ic e
In f l i g h t y ruithne—
mwl o a t .
A m il lio n and a q u a r t e r A rea Campaign B ars
•wps^PveBaBomaaBBBeBau
For th e M a rin e s, i n a d d i tio n to China S e rv ic e Medals
and Navy and M arine M edals, and th e m edals o f g e n e ra l
aw ard, th e M int h as pro d u ced 2 ,0 0 0 F l e e t R eserve m edals.
O rders s p e c i f i c a l l y f o r th e C o ast Guard have in c lu d e d
m arksm anship and l i f e sa v in g m e d als; and f o r th e M aritim e
Commission, b a r s f o r to rp e d o e d seamen and s i l v e r and gold
s ta r s *
-oOo
3
f o r h i s p a r t In th e R e v o lu tio n a ry War b a t t l e o f P au lu s
Ho ok •
ciA
The g o ld medal g iv e n M ajor Lee was a u th o r iz e d i n 1779#
I t was n o t s t r u c k , how ever, t i n t I I 17^rS‘ a f t e r th e M int
was e s t a b l i s h e d ^ ^ /7f-2L«
The f i r s t such h o n o r a c c o rd e d a N aval h e ro was a u th
o r iz e d by C ongress in 1805, f o r Commodore Edward P r e b le ,
who commanded U n ite d S ta te s f o r c e s i n th e sto rm in g o f
T r i p o l i in 1804.
From tim e to tim e m edals w ere s t r u c k , on d i r e c t i o n
o f C o n g ress, to honor d is t in g u is h e d A m ericans.
not u n til
I t was
RPM ^apim however, t h a t a medal f o r gen
p r o v l o u B l y f o i l outsfrw asting c o rv 4 e e
o f Honor gfl^jai»a|gMtl!ie nM
d e e ig tt
was a u th o r iz e d a y e a r l a t e r .
ffheec med alnn t i m.ww
of a l l
i
i»bh 1i b
..........
i
y u «-.
y e tty
t r - i m l nd*» -h o m g f
i n frhe vapfrgUB
rn iir w iileh lilm TTntlinn Tifir
0j&£
£l*v& *4. ^ * * 1 ^
The Medal o fM o n o rAmay-tee awardedCTor o u ts ta n d i\
Z.04L &1 dUOfe^ “
in g h e ro ism ^ in e i t h e r combat o r non-com bat a c t i o n . -jgtueT
-
2
-
T h is m e d a l, c o n s id e r e d by e x p e r t s one o f th e m ost
b e a u t i f u l e v e r p rod u ced in t h i s c o u n tr y , was a u th o r iz e d
f o r Army p e r s o n n e l in 1 9 3 2 , th e C e n te n n ia l y e a r o f th e
b i r t h a n n iv e r s a r y o f G eorge W a sh in g to n , t o whom t r a d i t i o n
a t t r i b u t e s th e fo u n d in g o f th e O rd er.
I t was a u th o r iz e d
f o r u s e o f th e s e a f o r c e s by an E x e c u tiv e O rder o f
December 3 , 1 9 4 2 .
John S in n o c k , C h ie f E n graver o f th e M in t, won a
$ 1 ,5 0 0 award in n a t i o n a l d e s ig n c o m p e titio n f o l lo w in g
C o n g r e s s io n a l a u t h o r i z a t io n f o r th e m edal i n 1932*
As
b e in g tu r n e d o u t by th e M int to d a y , th e medal i s a p u rp le
h e a r t made o f p l a s t i c su p erim p o sed upon a l a r g e r h e a r t
o f g o ld p l a t e d s t e r l i n g s i l v e r .
In th e c e n t e r o f th e
P u r p le H eart i s a b u s t o f G eorge W a sh in g to n , and ajfeove
i t i s an e n a m e lle d s h i e l d .
The p r o d u c tio n o f m ed als f o r A m erican h e r o e s has
b e e n a M int e n t e r p r i s e throuj '
e x is te n c e .
‘
Ms
The f i r s t m edal
o f th e i n s t i t u t i o n h on ored M ajor Henry L ee o f V ir g in ia
L>rv
3
1
'V t
The T re a s u ry announced to d a y t h a t th e U n ite d S ta te s
M int a t P h ila d e lp h ia h a s begun p ro d u c tio n o f th e n ew est
in a s e r i e s o f m edals f o r Am erican h e ro e s o f th e seab o rn e
a ”Navy and M arine M edal” to b e aw arded by
th e s e s e r v ic e s f o r h e ro ism d is p la y e d o u ts id e a c t u a l com-
T h is new to k e n w i l l ta k e i t s p la c e a lo n g s id e th e
pUA/Wt&
^
famous tfcFur»ple H e a r t” andjj{*Medal o f Honor”/^and a s c o re
o f o t h e r d e c o ra tio n s b e in g tu rn e d o u t a t th e P h ila d e lp h ia
i n s t i t u t i o n , and d e s ig n e d to e x p re s s th e g r a t i t u d e o f
th e N a tio n f o r o u ts ta n d in g in d iv id u a l and u n i t p erfo rm
an ces i n th e War.
D-
The M int p ro d u c e s/p £ 3 t)th e aw ards g iv e n men in th e
Navy, th e C o ast G uard, th e M arine C o rp s, and th e M aritim e
Commission s e r v i c e ,
ftmij j i i mnur......
u p iinTTrTTTm i 11 1 lm
men 1 n thw iugh’ priara-bu uuiijyj ^iut.
M int e n g ra v e rs m o d elled th e d e s ig n f o r th e Navy and
M arine Medal from a c h a rc o a l s k e tc h su b m itte d by a Naval
o ffic e r.
The m edal b e a rs an e a g le , w ings o u ts t r e tc h e d ,
w ith f e e t c la s p in g an a n c h o r.
Under th e an ch o r i s a
globe*
The M int now a ls o i s m aking r a p id d e liv e r y o f ”Order
o f th e P u rp le H e a rt” m e d a ls, an award made to men wounded
in a c tio n
"
TREASURYDEPARTMENT
W ashington
K)R RELEASE, MORNING NEWSPAPERS,
T hursday. J u ly 29. 1943.
'
Press Service
No. 37-74
The T re a su ry anncnmced to d ay t h a t th e U n ite d S ta te s M int a t
, P h ila d e lp h ia has begun p ro d u c tio n o f th e new est in a s e r i e s o f
m edals f o r American h e ro e s o f th e seab o rn e f o r c e s , a "Navy and
Marine Medal" to be aw arded by th e s e s e r v ic e s f o r h ero ism d i s played o u ts id e a c tu a l combat o p e r a tio n s ,
s o n n e ffo r^ h ifa w a rd ? * *
December 6 ’ 1 9 4 1 ’ may q u a l if y p e r -
This^new to k e n w i l l ta k e I t s p la c e a lo n g s id e th e famous
C o n g ressio n al Medal o f Honor" and "P u rp le H e a rt" and a sc o re
d ec° r a t i o n s b e in g tu rn e d o u t a t th e P h ila d e lp h ia i n d e sig n e d to e x p re ss th e g r a t i t u d e o f th e N a tio n
fo r o u ts ta n d in g in d iv id u a l and u n i t p erfo rm an ces i n th e War*
the
«5f»r»vi
r»A
VXQv •
,
^
m? s t ? / th e aw ards g iv e n men in th e Navy,
M arine C o rp s, and th e M aritim e Commission
e n g ra v e rs m o d elled th e d e sig n f o r th e Navy and M arine
medal bear<ABn h Y 0? a l s^ e to h su b m itte d by a N aval o f f i c e r . The
anchor • runder
i n Z th
In®
Z ^ ° u t s t r e t c h e d , w ith f e e t c la s p in g an
, ancxior
e an’ ch
o r i s a g lo b e .
'
.
P u r r l e ^ W ^ n t Z ? 1S° iS m aklng r a p id d e liv e r y o f "O rder o f th e
Purple H e a rt m e d als, an award made to men wounded In a c t i o n .
evPT.
? ° h s id e re d by e x p e rts one o f th e most b e a u t i f u l
in 19^? t h ! V V h l ? ,countr>y» was a u th o r iz e d f o r Army p e rso n n e l
w l R 32: t h ® C e n te n n ia l y e a r o f th e b i h t h a n n iv e r s a r y o f George
Ordein S tT ?’ t0 Wh2? t r a d i t i o n a t t r i b u t e s th e fo u n d in g o f th e &
m ? A J I t was a u th o riz e d f o r u se o f th e sea f o r c e s by an Execu
tiv e O rder o f December 3 , 1942.
7
nxecu
n
John S in n o ck , C h ie f E n g ra v er o f th e M in t, won a $ 1 ,5 0 0
“ n a t io n a l d e s ig n c o m p e titio n fo llo w in g C o n g re ssio n a l
Mini- £ R o t i °A .'f0 r Y ? I?eda;-1- ln 1932. As b e in g tu rn e d o u t b y th e
im n n c^d y> th e .medal i s a p u rp le h e a r t made o f p l a s t i c s u p e r
imposed upon a l a r g e r h e a r t o f g o ld p la te d s t e r l i n g s i l v e r ,
I n t h e c e n t e r o f t h e P u r p l e H e a r t i s a b u s t o f G eorge W ash in g to n *
and above i t i s an e n a m e l l e d s h i e l d *
The production of medals for American heroes has been a M*nt
enterprise throughout/the 150 years of its existence. The first
medal struck for an Army hero after the founding of the institution
honored Major Henry Lee of Virginia for his part in the Revolution
ary War battle of Paulus Hook. The gold medal given Major Lee was
authorized in 1779. It was not struck, however, until after the
Mint was established in 1792*
The first such honor accorded a Naval hero was authorized by
Congress in 1805, tor Commodore Edward Preble, who commanded United
States forces in the storming of Tripoli in 1804..
Prom tim e t o tim e m e d a ls w ere s t r u c k , on d i r e c t i o n o f C o n g r e s s ,
to h o n o r d i s t i n g u i s h e d A m e r ic a n s .
I t was n o t u n t i l 1861, h o w e v e r,
t h a t a m edal f o r g e n e r a l aw ard wa‘s a u t h o r i z e d , a Navy C o n g r e s s i o n a l
Medal o f H o n o r. The A m y C o n g r e s s i o n a l Medal o f H onor was a u t h o r
ize d a y e a r l a t e r .
The Medal of Honor is the highest of all our awards and is
given for outstanding heroism "above and beyond the call of duty”
in either combat or non-combat a c tio n .
HarborOther
are: awards produced at the Mint for the Navy since Pearl
Good Conduct medals.
D is tin g u is h e d S e rv ic e
o r ndn-com bat.
Medals,,
f o r e x c e p tio n a l s e r v ic e , combat
Distinguished Plying Crosses, for extraordinary heroism or
achievement in flight, combat or non-combat.
China Service Medals, for service In the China theater between
September 7, 1937, and September 7, 1939.
Silver Star, for gallantry in action.
Many gold stars for second decorations.
Marksmanship medals, Naval Reserve Medals, and Presidential
unit,citation bars.
Air Medals, for meritorious service In flight.
Amillion and a quarter Area Campaign Bars.
For the Marines, in addition to China Service Medals and Navy
and Marine Medals, and the medals of general award, the Mint has 1
produced 2,000 Fleet Reserve medals. Orders specifically for the
Coast Guard have included marksmanship and life saving medals; and
for the Maritime Commission, bars for torpedoed soamen and silver
and gold stars*
**o0o-t
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, July 27. 1943»
___
Press Sendee
the Secretary o f the Treasury announced la s t evening that the tenders for
11,000,000,000, or thereabouts, o f 92-day Treasury b i l l s to be dated July 28 and
to Mature October 28, 1943, which were offered on July 23, 1943, were opened at
the Federal Reserve Banks on July 26.
The d e ta ils o f th is Issue are as follow s:
Total applied for - $1,373,786,000
Total accepted
- 1,002,819,000
^
I
(includes $48,779,000 entered on a fixsd-ji
price b asis at 99.905 and accepted in fulji
Range of accepted bids:
High
Low
Average price
- 99.910 Equivalent rate o f discount approx. 0.352* per annuli
- 99.904
•
•
•
*
*
0.376* «
- 99.904/
. •
"
*
0.374* "
(75 percent o f the amount bid for a t the low price was accepted)
Federal Reserve
Bank
Total
Applied for
Total
Accepted
Boston
New Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
#
i
TOTAL
43,495,000
828, 308,000
82,660,000
51,934,000
28,124,000
9,925,000
130, 152,000
31,734,000
26, 438,000
18 , 196,000
19 , 225,000
103,575,000
#1,373,786,000
36,570,000
521, 067,000
76,704,000
47,183,000
26, 908,000
9, 600,000
112 , 420,000
25,859,000
21,408,000
17,650,000
19,125,000
88^25.000
#1,002,819,000
" O'
TREASURY DEPARTMENT
Washington
FOR RELEASE, HORSING NEWSPAPERS,
Tuesday, July 27» 1943.
Press Sendee
37- 7a'
The Secretary of the Treasury announced la s t evening th a t the tenders for
$1,000,000,000, or thereabouts, of 92-day Treasury b ills to be dated July 28 and
to mature October 28, 1943, which were offered on July 23, 1943, were opened a t
the Federal Reserve Banks on July 26.
The d etails of th is issue are as follows:
Total applied for - $1,373,786,000
Total accepted
* 1,002,819,000 (includes $48,779,000 entered on a fixedprice basis a t 99-905 and accepted in ful
Range of accepted bids:
- 99.910 Equivalent ra te of discount approx. 0 .352% per annu
- 99.904
«
«
*
*
n
0,376% *
- 99.904/
*
H
n
n
»
0.374$ ”
High
Low
Average price
(75 percent of the amount bid for a t the low price was accepted)
Federal Reserve
Bank
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
*
TOTAL
43,495,000
828,308,000
82,680,000
51.934.000
28.124.000
9,925,000
130,152,000
31.734.000
26.438.000
18,196,000
19,225,000
103,575,000
11,373,786,000
36,570,000
521.067.000
76.704.000
47.183.000
26.908.000
9,600,000
112.420.000
25.859.000
21.408.000
17.650.000
19.125.000
88.325.000
11,002,819,000
h
'dork
:-iph:
inland
\m
!la
,'Sis
Soli
|j «
:las ■
Sci
TREASURYDEPARTMENT
Washington
FORRELEASE, MORNINGNEWSPAPERS,
Tuesday, July 27, 1943.
Press Service
No! 37-75
The Secretary of the Treasury announced last evening that the
tenders for $1,000,000,000, or thereabouts, of 92-day Treasury
bills to be dated July 28 and to mature October 28, 1943, which
were offered on July 23, 1943, were opened at the Federal Reserve
Banks on July 26.
The details of this issue are as follows:
Total applied for - $1,373,786,000
. Total accepted - 1,002,819,000 (includes $48,779,000 en
tered on a fixed-price
basis at 99.905 and ac
cepted in full)
Range of accepted bids:
High - 99.910 Equivalent rate of discount approx i 0;352$
,
per annum
Low - 99.904
”
11
,f approx. 0.376$
per annum
Average
price - 99.904 / ”
,1
"
w approx. 0.374$
per annum
(75 percent of the-amount bid for at the low price was accepted)
Federal Reserve
Bank________
Boston
NewYork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Applied for
$ 43,495,000
828.308.000
82,680,000
51.934.000
28.124.000
9,925,000
130,152^000
31.734.000
26.438.000
18.196.000
19.225.000
103.575.000
$1,373,786,000
*o0o<r
Total
Accepted
$ 36,570,000
521.067.000
76.704.000
47.183.000
26.908.000
9,600,000
112.420.000
25.859.000
21.408.000
17.650.000
19.125.000
f;
88>525.000
$1,002,819,000
TBK4SURY DEPARTMENT
Washington
Press Sorties
FOR IMMEDIATE &KUEASE,
JuJLr 27. X9A3
~2u>.
Secretary o f the Treasury Morgenth&u today announced the subscrip
tio n figu res and the b a sis o f allots*®**! on cash subscriptions from com
mercial banks fo r th eir own account fo r th e current offerin g o f ? / t per
cent T reasury C ertificates o f Xndobtedness o f Series D-1944.
Reports received from the Federal Reserve Banks shoe th at cash sub
scrip tion s aggregate $5,484,000,000.
\
These subscriptions sere a llo tte d
percent, on a straigh t percszstag* b a s is , with adjustments, there
necessary, to the $1,000 denomination.
Exchange subscriptions, in payment o f which Treasury C ertifica tes
o f Indebtedness o f Series B-1943 were tendered, aggregate $1 , 559>000,000.
R etails as to subscriptions and allotm ents m ill be announced when
f in a l reports are received from the Federal Reserve Banks.
o
0
c?
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T uesday, J u ly 27. 1943.
P re s s S e rv ic e
No. 37-76
S e c r e ta r y o f th e T re a su ry M orgenthau to d ay
announced th e s u b s c r ip tio n f ig u r e s and th e b a s is o f
a llo tm e n t on cash s u b s c r ip tio n s from com m ercial banks
f o r t h e i r own a c co u n t f o r th e c u r r e n t o f f e r in g o f 7 /8
p e r c e n t T re a su ry C e r t i f i c a t e s o f In d e b te d n e ss o f
S e r ie s D-1944.
R ep o rts re c e iv e d from th e F e d e ra l R eserve Banks
show t h a t c a sh s u b s c r ip tio n s a g g re g a te $ 5 ,4 8 4 ,0 0 0 ,0 0 0 .
These s u b s c r ip tio n s w ere a l l o t t e d 18 p e r c e n t, on a
s t r a i g h t p e rc e n ta g e b a s i s , w ith a d ju s tm e n ts , where
n e c e s s a r y , to th e $ 1 ,0 0 0 d en o m in atio n .
Exchange s u b s c r i p tio n s , in payment o f w hich
T re a su ry C e r t i f i c a t e s o f In d e b te d n e ss o f S e r ie s B-1943
were te n d e r e d , a g g re g a te $ 1 ,5 5 9 ,0 0 0 ,0 0 0 .
D e ta ils as to s u b s c r ip tio n s and a llo tm e n ts w i l l
be announced when f i n a l r e p o r ts a re re c e iv e d from th e
F e d e ra l R eserve B anks,
-oOo-
TREASURY DEPARTMENT
Washington
'N
FOR IMMEDIATE RELEASE
J 3 llZ L J 3 h l
S e c re ta ry a&rfrto
P ress S ervice
No.
o
Morgenthau announced
today th a t in an e f f o r t to conserve la b o r, paper and
o th e r m a te r ia ls , co n clu sio n had been reached to reduce
th e s iz e of th e U nited S ta te s War Savings Bonds - S e rie s E,
w ithout change in th e term s of th e bonds, or t h e i r designa
tio n . [The new s iz e w ill be approxim ately 7 -3 A by U-l/M*
in c h e s, or about th a t of th e p re s e n t bond fo ld ed once from
top to b o tto m .y ^ o rk w ill proceed im m ediately, and i t is
c o n fid e n tly b e lie v e d th e new bonds w ill be a v a ila b le in
about two months, a f t e r which they w ill be issu e d in regular
course as sto ck s of th e p re se n t bonds become exhausted. E .
saving of about $ 1 , 750,000 a y ear in paper and production
c o s ts alone w ill be r e a liz e d on th e b a s is of l a s t year*s
s a le s of th e se bonds.
TREASURY DEPARTMENT
W ashington
FOR IMMEDIATE RELEASE,
T uesday, J u ly 27, 1945.
P re ss S e rv ic e
No. 37-77
S e c r e ta r y M orgenthau announced to d ay t h a t in an e f f o r t
to co n serv e l a b o r , p a p e r and o th e r m a t e r i a l s , c o n c lu s io n
had been reac h ed to red u ce th e s iz e o f th e U n ite d S ta te s
War S avings Bonds - S e r ie s E, w ith o u t change in th e term s
o f th e b o n d s, o r t h e i r d e s ig n a tio n .
The new s iz e w i l l be a p p ro x im a te ly 7 -3 /4 by 4 -1 /4
in c h e s , o r ab o u t t h a t o f th e p r e s e n t bond fo ld e d once from
to p to b o tto m .
Work w i l l p ro ceed im m ed ia tely , and i t i s c o n f id e n tly
b e lie v e d th e new bonds w i l l be a v a ila b le in ab o u t two m onths,
a f t e r w hich th e y w i l l be is s u e d i n r e g u la r co u rse as s to c k s
o f th e p r e s e n t bonds become e x h a u ste d .
A sa v in g o f ab o u t $ 1 ,7 5 0 ,0 0 0 a y e a r in p a p e r and p ro
d u c tio n c o s ts alo n e w i l l be r e a l iz e d on th e b a s is o f l a s t
y e a r ’ s s a le s o f th e s e b o n d s.
FOR IMMEDIATE RELEASE,
Jnly 27. 1943.
colleetora'^of’^iiotn CusJ°“® ^announced today that preliminary reports from the
f M f show imports of cotton and cotton waste chargeable to the
K c ^ W
io
4- K , e JreSla“ ‘ ' 8 proclamations of September 5 , 1939,
J«ly 17 1943
fo llo w s» during the period September 21 , 19U2, to
COTTO^OP LESS THAEM/k ™
“ CHES (0 ™ » THAH HARSH OH HOUGH
JaS
m
L S liZ f!ICH IM STAPLS LEHOTH A™ CHIEFLY USED IJf THE KAJ1U, ® BLAffiCETS AND BLAHKETIUG, AHD OTHER TRAIT LIHTERS). Annual ouotas
commencing September 20, by Countries of Origin:
^
Country of
Origin
_____ ,In Pounds!
Staple length le s s
Staple length l - l / g ff or more
than _1-_1 _/g"
_____
but le s s than 1 - 11 / l 6tt
*
’Imports Sept. j Established * Imports Sept.
:Established: 21 , I 9U2 , to :
Quota
: 21 , 191*2 , to
-Quota
; J q l y l 7 , 1943: 1*5.6^1*20 : Jtdy
Egypt and the AngloEgyptian S u d a n ....,,,..
P e r u .............. tTT t
B ritish In d ia .. . . . .
; China..................... t
Mexico. f . f . TT, , ,
Brazil,
; Union of Soviet
S o cia list R epublics., . ,
Argentina.............. t , , , .
Haiti.
| Ecuador................................
i Honduras..............., , , , ,
Paraguay..................... TTt,
lC o l o m b i a . .
Iraq..................t t ( ( t ,
British East A fr ic a .__ f
( Netherlands East Indies,
1 Barbados................. TTr,
j Other B ritish West
Indies
1
. , Tt +
j Nigeria.............................t r
[ Other B ritish West
Africa 2/ . . . ................
1 Other French Africa J / ,
[ Algeria and T u nisia.. . . .
783,816
21+7,952
2, 003, 1+83
1 570 7Q1
8,883,259
618,723
1+75, 121+
K 205
?77
CJI
9,333
7^2
f JC£71
O/ X
121*
1Q
R
•*•72
2 , 2U0
.71*388
43,790,689
388,635
019 f aen
y 03
mm
•
A
W|OO0|«OK
0O
?
813,723
-
mm
COf
9,363
m
• - -
mm
•
mm
mm
21,321
K
777
J % J It
mm
l 6 , 00U
6S9
lh , 516,882
9t 759«434
45,6>5^,h20
i / Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
£/ Other than Gold Coast and N igeria,
p/ Other than .Algeria, Tunisia, and Madagascar.
43,179,324
-2 ~
COTTOF CARD STRIPS, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE,
WHETHER OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. A nnual q u o ta s
commencing S eptem ber 2 0 , by C o u n tr ie s o f O rig in s
m
2/
T o ta l q u o ta , p r o v id e d , h o w ev er, t h a t n o t more th a n 33-•1/3 p e r c e n t f ~of th e
q u o ta s s h a l l be f i l l e d b y c o t to n w a s te s o th e r th a n c a r d s t r i p s / and com ber
w a s te s made from c o t to n s o f 1—3/ l 6 in c h e s o r more in s t a p l e le n g t h in th e
c a s e o f th e f o llo w in g c o u n t r i e s : U n ite d Kingdom, F r a n c e , N e th e r la n d s ,
S w itz e rla n d , B elg iu m , Germany and I ta ly *
( I n Pounds)
' •t
•
•
TOTAL IMPORTS :ESTABLISHED:imports Sept. 21,
Country of Origin: Established : Sept. 21, 19l+2;33-l/3# of :19U2, to
• TOTAL QUOTA : July 17, 1943 : Total Quotatfuly 17. 1943
1/
United Kingdom.........
Canada..........................
F r a n c e . . . . . . . . . .........
B ritish I n d ia .,,,
Netherlands,
S w it z e r la n d .,,,.,,,.
Belguim.......................
Japan............... ... ..........
China........... ... .............
®§ypt
Cuba..............................
Germany.. . . . . . . . . . . .
I t a ly . ............................... ...
TOTALS
•
86,495
61,823
•
‘*,323,^57
239,690
227, 1+20
69,627
68, 21+0
B*,3g8
38,559
3^1,535
17,322
8,135
6, 51+1+
-
l,l+Ul ,152
75,807
22J 1+7
1^,796
12,853
-
76,329
21,263
«
PR lili'?
-
7,088
5 ,4 8 2 ,5 0 9
1 -4 8 ,3 1 8
1 ,5 9 9 .8 3 6
l/
Included in to ta l imports, column 2 ,
2/
The President1s proclamation, signed March 31* 19^2 , exempts from import
quota r e str ictio n s card str ip s made from cottons having a staple I - 3/16
inches or more in length.
- 0O0-
FOR IMMEDIATE RELEASE,
3
July 27. 1943_______
2!he Bureau of Customs announced today preliminary figures showing the quan
t it ie s of coffee authorized for entry for consumption under the quotas for the
12 months commencing October 1, 1942, provided for in the Inter-American Coffee
Agreement, proclaimed by the President on April 15* 1941* as follows]
Country of
Production
;
X
Quota Quantity
(pounds) 1/
5
l
Authorized for entry
for consumption
As o f
(Bate)___ 2-----(fpttLdg)
Signatory Countries:
Brazil
Colombia
Costa Bica
Cuba
Dominican Republic
Ecuador
EL Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
2,172,359,753
735,840,277
46,718,031
18,692,451
25,752,947
35,041,235
140,776,585
124,978,598
64,236,136
4,278,467
111,292,661
45,818,819
5,839,588
90,021,490
No**-signatory Countries:
B ritish Aspire, except
)
Aden and Canada
)
Kingdom of the Netherlands)
and it s possessions
) 75,969,017
Aden* Yemen, and Saudi
)
Arabia
)
Other countries not signa*)
tories of the Inter)
American Coffee Agree- )
meat
)
1/
Quotas revised as of March 5, 1943i
July 17, 1943
»
R
H
N
N
II
R
«
If
n
R
R
R
565,947,495
492,535,482
38,581,507
10,715,203
17,389,306
17,540,465
111,791,661
79,102,518
53,867,516
4,178,623
56,699,020
22,771,871
303,775
60,526,452
32,627,799
TREASURY DEPARTMENT
W ashington
EOR IMMEDIATE RELEASE,
Wednesday? J u ly 2 8 , 1943.
P r e s s S e r v ic e
No. 37-78
The B ureau o f Customs announced to d a y p r e li m i n a r y f i g u r e s show ing th 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 tr y f o r co n su m p tio n u n d e r th e q u o ta s f o r
th e 12 m onths commencing O c to b e r 1, 1942, p r o v id e d f o r i n th e In te r-A m e ric a n
C o ffee A greem ent, p ro c la im e d by th e P r e s id e n t on A p r il 15, 1941, as fo llo w s }
C o u n try o f
P ro d u c tio n
Q uota Q u a n tity
( P ounds) %J
A u th o riz e d f o r e n tr y
f o r co n su m p tio n
As o f
( D a t e ) j ( Pounds )
2 ,1 7 2 ,3 5 9 ,7 5 3
7 3 5 ,8 4 0 ,2 7 7
4 6 ,7 1 8 ,0 3 1
1 8 ,6 9 2 ,4 5 1
2 5 ,7 5 2 ,9 4 7
' 3 5 ,0 4 1 ,2 3 5
1 4 0 ,7 7 6 ,5 8 5
1 2 4 ,9 7 8 ,5 9 8
6 4 ,2 3 6 ,1 3 6
4 ,2 7 8 ,4 6 7
1 1 1 ,2 9 2 ,6 6 1
4 5 ,8 1 8 ,8 1 9
5 ,8 3 9 ,5 8 8
9 0 ,0 2 1 ,4 9 0
J u ly 17, 1943
t!
U
tl
S ig n a to ry C o u n trie s }
B ra z il
C olom bia
C o s ta R ic a
Cuba
D om inican R e p u b lic
E cuador
E l S a lv a d o r
G uatem ala
H a iti
H onduras
Mexico
N ic a ra g u a
P eru
V en ezu ela
N o n -sig n a to ry C o u n tr ie s :
B r i t i s h E m pire, e x c e p t
)
Aden and C anada
)
Kingdom o f th e N e th e r la n d s )
and i t s p o s s e s s io n s
)
Aden, Yemen, an d S au d i
)
A ra b ia
)
O th er c o u n t r i e s n o t s ig n a - )
t o r i e s o f th e I n t e r )
A m erican C o ffe e A g ree- )
m ent
)
1/
7 5 ,9 6 9 ,0 1 7
Q uotas r e v i s e d a s o f M arch 5 , 1943?
-oO o-
If
n
it
it
it
tt
it
5 6 5 ,9 4 7 ,4 9 5
4 9 2 ,5 3 5 ,4 8 2
3 8 ,5 8 1 ,5 0 7
1 0 ,7 1 5 ,2 0 3
1 7 ,3 8 9 ,3 0 6
1 7 ,5 4 0 ,4 6 5
1 1 1 ,7 9 1 ,6 6 1
7 9 ,1 0 2 ,5 1 8
5 3 ,8 6 7 ,5 1 6
4 ,1 7 8 ,6 2 3
5 6 ,6 9 9 ,0 2 0
2 2 ,7 7 1 ,8 7 1
3 0 3 ,7 7 5
6 0 ,5 2 6 ,4 5 2
3 2 ,6 2 7 ,7 9 9
TREASURY DEPARTMENT
Washing-ton
FOR RELEASE, MORNING NEWSPAPERS
Thursday, August 5 , 1943
Areas Servioe
No. 37-79
Secretary o f the Treasury Morgenthau today made publio pre
liminary s t a t is t ic s from corporation income and declared value excessp rofits tax returns for 1941, f ile d through December 31, 1942, pre
pared under the direction of the Commissioner o f Internal Revenue Guy
T. Helvering.
The preliminary report. S ta tis tic s of Income for 1941,
Part 2, w ill be released at an early date.
SUMMARY DATA
The number of corporation income and declared value excessp rofits tax returns for 1941, f ile d through December 31, 1942, is
509,062, of which 264,625 show net income of #18,111,092,109, while
204,277 show d e fic it o f #1 ,778,552,586, and 40,160 have no income
data (in active corporations).
The normal tax is #2,947,571,201, the
surtax is #796,999,565, the declared value excess-p rofits tax is
#64,452,662, the excess p rofits tax is #3,356,550,698, and the to ta l
tax is #7,165,574,126, an increase of 181 percent over the total tax
l i a b i l i t y for the preceding year.
The increase or decrease, 1941 over 1940, in the number of re
turns, net income, d e f ic it , and tax follows*
2
Preliminary data for corporation return*, 1941 and 19401
Number of returns, net income, d e fic it, and tax
(Money figures in thousands of dollars)
1941
1940
Increase or decrease (-)
dumber or
amount
Total number of returns .
Returns with net incomes
Number o f returns
Net income l/
Tax lia b ility *
Income tax 2j
Declared value excessp rofits tax z/
Excess p rofits tax
Total
Returns with no net incomes
Number of returns
D e fic it 1^/
Percent
509,062
518,783
-7,721
-1
264,625
18,111,092
220,977
11,203,224
43,648
6,907,868
20
3,744,571
2,144,292
1,600,279
75
64,453
3,356,551
30,744
373,511
33,709
2,983,040
110
799
7,165,574
2,548,546
4,617,028
181
204,277
1,778,553
252,065
2,283,795
-47,788
-505,243
-22
40,160
43,741
-3,581
-8
Number of returns of inactive
corporations
For footnotes, see pages 1 4 - 1 6 .
62
-19
- 3 Allowance of the net operating lose deduction reduced the net in*
ooae for declared value excess*profits tax computation by $350,029,647
on 50,894 returns file d for 1941 as compared with $122,897,975 on 25,467
returns file d for 1940, the f ir s t income year for which the present law
permits such a deduction*
The amounts of income tax, normal tax, and surtax shown herein do
no^ take into account any credit claimed for income and profits taxes
paid to a foreign country or United States possession*
RETURNS INCLUDED
The returns included in th is release are those filed for the
calendar year ending December 31, 1941, a fisca l year ending within
the period July 1941 through June 1942, and a part year with the great* '
er portion of the accounting period in 1941*
The data are from ( l) corporation income and declared value
excess-profits tax returns. Form 1120, file d by domestic corporations
and resident foreign corporations other than those which are exempt
from tax under section 101, Internal Revenue Code as amended, and (2)
insurance company income tax returns. Form 112QL, file d by domestic
insurance companies and by foreign lif e insurance oompanies
carrying on insurance business within the United States or holding
reserve funds upon business transacted within the United States*
The
sta tistic s are compiled from the returns as file d , prior to revisions
that may be made as a result of audit by the Bureau of Internal Revenue.
Data from amended returns and tentative returns are not included in the
tabulations*
- 4 CHANGES IN LAWAFFECTING CORPORATION RETURNS (FORM 1120)
The comparability of the figures tabulated from the 1941 returns
and those from the 1940 returns is affected by the changes in law in
troduced by the Revenue Act of 1941. The most significant changes are:
(1) Provision is made for the deduction of the excess profits tax
for the taxable year in computing normal-tax net income and surtax net
income, whereas for 1940 the income tax was allowed as a deduction in
computing excess profits net income.
(2) A surtax equal to 6 percent of surtax net income not in excess
of #25,000 plus 7 percent of the amount in excess of #25,000 is imposed
on a ll corporations, except nonresident foreign corporations.
Surtax
net income, in general, equals noxmal-tax net income plus interest on
partially tax-exempt secu rities.
(3) The normal-tax rates provided by the Revenue Act of 1941, which
are, in general, an integration of the immediately prior income tax
rates and defense tax rates, apply to taxable years beginning after
December 31, 1940. The rates thus provided are as follows:
Size of normal-'tax net- income
Not In excess of #5,000
#5,000 not in excess of
#20,000
#20,000 not in excess of
#25,000
#25,000 not in excess of
#38,461.54
#38,461.54 or more
Rate
15£
#750 plus 17% of the amount
in excess of #5,000
#3,300 plus 19% of t h e amount
in excess of #20,000
#4,250 plus 37% of the amount
in excess of #25,000
24%
Foreign corporations engaged in business within the TMited
States are subject to a fla t 24 percent tax, computed on normaltax net income. Mutual investment companies are also subject to a
fla t 24 percent tax, based, however, on the adjusted net income
(computed without net operating loss deduction) le ss the basic
surtax credit.
The 1941 Act also integrates the defense tax rates with the
declared value excess-profits tax rates, effective with respect to
taxable years ending after June 30, 1941.
INDUSTRIAL GROUPS
The distribution of the returns for 1941 by major industrial
groups for returns with net income and returns with no net income
is shown in tables 1 and 2, pages 7 - 12, of th is release.
The industrial classification is based on the business activity
reported on the return, or when multiple businesses are reported on
& return, the classification is determined by the business activity
which accounts for the largest percentage of to ta l receipts.
There
fore, the industrial groups do not reflect pure industry c la s s ifi
cations.
The major industrial groups for 1941 are comparable with those
for 1940 with one exception.
For 1941, "Cotton manufactures" is
shown separately as a major industrial group. The remainder of the
te x tile manufactures is shown under the major group entitled "Textilem ill products, except cotton."
-
6
-
In analyzing the data compiled from returns classified under
the major group "Insurance carriers, agents, etc,," i t should be
noted that lif e insurance companies are required to inolude only in
terest, dividends, and rents in gross income and are allowed to re
port as deductions the earnings needed to maintain reserve funds
required by law and reserve for dividends.
For 1941, the deductions
for these reserves are $47,234,125 for returns with net income and
$965,969,542 for returns with no net income,
HISTORICAL SUMMARY
A h istorical summary for each of the years 1932-41 is presented
in table 3, page 13.
in comparing the data throughout the ten-year
period, the various changes in law must be taken into consideration,
especially the discontinuance, under the Revenue Act of 1934, of
the privilege of filin g consolidated returns (except by railroad cor
porations and their related holding or leasing companies and, begin
ning with 1940, by Pan-American trade corporations) and the provision
of the Revenue Act of 1936 requiring the dividends received from
domestic corporations subject to tax to be included in net income.
Table 1. - Corporation returns
1941, filed through December 51, 1942, by major industrial groups, for returns with net income and with no net incomereoeipts> net incQ,ne
deficit, and dividends paid in cash and assets other than own stock?
also, for returns with net incomes Normal tax, surtax, declared value excess-profits tax, and excess profits tax
(Money figures in thousands of dollars)
Returns with net income 1/
Major industrial groups 5/
1
z
5
4
5
6
7
8
9
10
11
12
IS
14
IS
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51
52
55
54
55
56
111 industrial groups
lining and quarrying
Metal wining
Anthracite wining
Bituminous coal, lignite, peat, etc.
Crude petroleum and natural gas
production
Nonmetallic "ining and quarrying
Mining and quarrying not allocable
ianufacturing
Food and kindred products
Beverages
Tobacco manufactures
Cotton manufactures
Textile-mill products, except cotton
Apparel and products made from fabrics
Leather and products
Rubber products
Lumber and timber basic products
Furniture and finished lumber products
Paper and allied products
Printing and publishing industries
Chemicals and allied products
Petroleum and coal products
Stone, clay, and glass products
Iron, steel, and products
Nonferrous metals and their products
Electrical machinery and equipment
Machinery, except transportation
equipment and electrical
Automobiles and equipment, except
electrical
Transportation equipment, except
automobiles
Other manufacturing
Manufacturing not allocable
iblic utilities
Transportation
Communication
Other public utilities
For footnotes, see pages 14-16*
Total
number
of re
turns
6/
Number
of
returns
Total
compiled
receipts
Net
income
u
2/ ■
Total
tax
Normal
tax 8/
Surtax 9/
509,062 264,625 175,181,824 18,111,092 7,165,574 2,947,571 10/797,000
12,175
4,588
5,110,559
450,125
144,252
81,842
25,175
2,551
555
1,067,920
214,210
69,942
57,254
10,791
158
72
166,564
9,457
2| 135
1,555
595
1,890
859
871,404
56,851
19,065
10,199
2,804
5,114
2,154
674,582
117,575
52,870
25,500
6,509
1,718
944
87,165
10,082
5,092
264
794
4,045
8,866
2,105
548
2,751
4,525
2,229
11,448
6,872
665
5,565
6,460
2,669
1,750
5,971
960
526,269
28
5,819
58,041 90,555,521
6,220 12,851,221
1,908
2,109,982
157
1,564,765
717
1,946,400
2,992
5,945,494
5,791
5,064,042
1,562
1,655,545
419
1,678,794
1,924
1,445,145
5,005
1,704,155
1,892
2,755,548
6,201
2,225,476
4,227
6,584,061
412
6,612,904
2,155
2,215,815
5,254 11,629,675
1,968
2,834,706
1,251
5,720,895
4,621
7,187,568
Returns with no net income
Taxes
51,915
20,150
9,511
555
91
66
10,601,565 4,945,851 1,755,557
660,150
252|549
129,291
204,161
/1,618
42,597
166,640
62,722
54,606
214,618
91,915
40,760
556,165
153,444
63,556
154,025
49|511
24,210
94,652
32,195
18,720
155,578
64,640
28,597
167,520
71,166
29,157
142,865
58,244
25,427
555,895
169|809
59,955
214,591
69,596
40,817
1,027,952
465,109
170,565
556,282
157,092
88,587
546,059
159,360
59,948
1,540,754
795,467
240,528
580,769
189,775
59,997
666,424
367,621
98,356
1,525,065
699,058
210,819
2,656
19
444,862
51,281
9,532
10,105
6,525
14,993
5,148
2,818
5,560
7,752
5,994
15,519
11,475
45,548
25,440
16,549
65,400
16,682
27,591
47,748
Declared
value
excessprofits,
tax 5/
64,455
568
45
5
105
36
179
(18)
42,695
2,046
315
8
675
2,742
1,090
799
597
815
1,243
1,490
*375
1,985
288
654
9,826
1,075
1,756
6,865
Excess
profits
tax
y
Dividends
paid in
cash and Number
assets
or
other
returns
than own
Total
compiled
receipts
2/
Deficit
V
5,556,55] 6,518,177 204,277 15,250,197 1,778,555
58,849
508,208
5,279
789,146
71,272
21,87!
145,484
955
80,799
121212
4oe
4,050
75
97,550
5,562
5,959
17,955
865
556,545
14llB0
2,825
117,415
2,548
252,841
56^550
7,784
2,702,957
69,952
19,577
18,005
44,157
' 72,155
18,86S
9,857
50,287
55,462
25,579
92,866
16,929
247,011
22,976
82,429
479,905
112,021
259,918
455,606
25,275
49
2,815,518
271,485
69,585
94,659
41,112
67,615
24,095
27,955
55,862
51,601
50,418
91,591
88,505
356,940
288,659
107,784
275,064
85,721
145,991
255,420
645
195
26,589
5,546
984
117
67
972
2,980
525
119
717
1,257
511
4,950
2,561
207
1,125
1,066
657
445
1,177
54,550
7,064
5,1061549
665,700
156'228
19^195
19,961
161,465
505j157
124,565
16'746
81,551
95^665
50*315
595^470
129'345
282,757
87'447
122,896
58,786
52,807
85'702
Dividends
paid in
cash and
assets
other
than own
5
4
5
6
5,971
996
171,951
21^259
lOl954
lll87
2l 065
9!067
8^146
5^044
Si055
71482
51&46
Si974
251697
111642
6ll54
81568
81295
Si 748
sl 595
61718
155
7
2
8
20,189
9
2!017 10
214 11
158 12
48S 15
2,218 14
*272 15
647 16
594 17
S-KH 18
*155
26
1,201
*885
4,82a
645
1,425
40
7
20
506
775
546
6,542,757
864,547
459,780
133,566
56,502
5,195
266,717
257,076
195
45,071
5,494
927
575
5,885,455
726,854
424,548
106,496
25,752
2,521
291,778
94,177
277
44,856
6,166
48
4,285
2,887
25,457
15,449
5,955
4,055
2,669
1,599
12,985
8,58?
1,951
2,447
1,557,531
822,234
14,175,762
8,405,941
1,668,850
4,100,991
215,254
89,028
2,081,267
912,859
518,566
850,042
100,688
40,156
702, 548
305,926
115,249
281,373j
55,265
14,559
416,504
171,259
65,445
179,800
9,633
5,940
120,172
48,880
19,000
52,292
1,205
1,552
1,075
960
54
79
54,587
59,476
20,545
16,991
164,799 1,076,225
84,827
544,541
30, 77C
201,445
49,208
550,240
1,509
'895
8,956
5,954
1.767
1,255
76,575
50,715
1,772,816
1,560^557
50,116
162,145
7,252
41790
1541062
1221415
7l048
24,599
122
595
10,407
4l 848
*406
5,152
(Continued on following page)
1
2
182,610
is!612
2l 154
155
2,716
81452
j
1 o, for returns with net incane:
Normal tax, surtax, declared value excess-profits- tax, and excess profits tax (Continued)
(Money figures in thousands of dollars)
Returns with net income 1/
Major industrial groups 5/-
57
58
59
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62
65
64
65
66
67
68
69
70
Trade
Wholesale
Commission merchants
Other wholesalers
Retail
General merchandise
Food stores, including market m-nv
dealers
Package liquor stores
Drug stares
Apparel and accessories
Furniture and house furnishings
Eating and drinking places
Automotive dealers
Filling stations
Hardware
Building materials, fuel and ice
Other retail trade
Retail trade not allocable
Trade not allocable
Service
Hotels and other lodging places
Personal service
Business service
Automotive repair services and
garages
Miscellaneous repair services, hand
trades
Motion pictures
Amusement, except motion pictures
Other service, including schools
Service not allocable
Finance, insurance, real estate, and
lessors of real property
Finance
Banks and trust companies
Long-term credit agencies, mortgage
companies, except banks
Short-term credit agencies,
except banks
For footnotes, see pages 14 - 16
Total
number
of re
turns
i/
Total
compiled
receipts
1/
141,620 89,475
38'418 27,491
5] 603
5,577
32]815 25,914
86]120 51,444
6,559 - 4,469
7] 116
5,088
55,252,745
25,917,726
1,196,086
24,721,640
25,285,285
1,803
5] 368
ll]424
5] 551
10,376
10]588
2] 685
2]688
8]s24
8] 287
5] 151
17]082
44] 045
5,210
9,542
7] 757
3] 657
75,121
585,989
2,150,751
977,145
567,478
4,176,290
518,164
206,257
1,253,428
1,017,855
691,717
4,051,736
5,107,179
596,497
545,524
696,259
108,215
900
2,605
7,298
5,885
5,855
7,658
1,409
1,828
5,646
5,240
5,565
2,212
4,525
5,569
1,555
1,656
4,552
5] 553
6,119
219
153,666
39,739
16]819
3,474
5,447
937
2,561
2,052
1,659
85
8
i
1
A QIC non
84,731
Return*; with no net income j/
Dividends
Taxes
Net
income
u
Total
tax
Normal Surtax 9/
tax 8/
Declared
value
excessprofits
tax i/
Excess
profits
tax 4/
cash and
assets
other
than own
stock
H u ber
of
returns
Total
compiled
receipts
u
Deficit
V
2,222,556
964,185
79,
79,066
885,
)8fi|.119
1,061,,870
509,,767
87.,244
863,542
388,950
3i, 713
357,237
406,180
221,253
29,779
594, H E
167, Sl{
12,10C
155,418
189,905
93,042
17,245
106,122
42,120
3,161
58,959
53,652
26,597
4,941
15,362
9,500
380
9,120
4,451
1,187
114
347,94
169,81]
16,075
153,74C
158,17!
100,42'
7.48C
577,490
216]599
21,634
194,965
296,192
158]157
38,099
49,228
IO]141
l]909
8] 252
33]101
l]971
3] 822
4,525,671
1,726,122
161,538
1,564, 784
2,308,236
105,419
506,952
142.556
60,665
3,890
56,772
65,678
5,533
11,042
1,539
23,789
104,641
57,673
22,568
100,447
14,905
9,722
52,882
55,171
21,524
196,501
259,487
27,197
29,348
54,919
5,254
521
6,819
36,797
19,019
6,117
37,074
5,196
2,964
15,232
19,499
6,110
68,411
/5,595
7,371
7, 82b
17,188
1,619
211
4,402
18,569
10,378
4,027
16,119
2,814
1,504
9,160
9,156
5,479
36,692
46,883
4,662
4,946
10,446
749
68
808
5,009
2,951
1,053
4,715
824
462
2,615
2,568
1,062
10,550
11,161
1,221
1,391
2,860
257
18
91
443
389
91
514
36
129
420
512
509
1,410
763
64
127
93
26
25
1,519
12,976
5,501
966
15,728
1,522
869
5,067
7,265
1,060
19,959
16,788
1,425
1,562
3,788
607
114
882
7,995
2,652
21,787
S]946
8,990
l]595
7,221
6] 501
18,923
2] 728
4,947
l]211
2,514
'843
14,590
2,738
8,705
2] 925
4,153
l]487
64]699
5] 986
96]565 2l] 582
6,794
2] 829
7,574
4,490
24,548
5]645
'759
2] 020
38,252
113,199
184,241
76,431
540,169
414,585
61,056
25,144
211,249
138,748
94,812
489,313
.,076,398
522,794
185,760
150,357
63,185
916
2,813
6,911
5,524
11,055
5,105
1,312
1,058
6,765
6,978
2,694
15,995
76.556
28,195
9,309
8,842
2,565
6,852
2,561
1,074
319
120
1,049
952
685
13,776
Dividends
paid in
cash and
assets
other
than can
9,613
7,086
400
6,686
2,011
294
258
57
58
39
40
41
42
43
(18)
55
56
45
70
169
54
44
45
46
47
48
49
21
51
52
53
54
55
56
57
58
59
60
699
255
61
518
2,051
995
268
167
21
576
50
61
892,320
209,858
166,550
7,628
7,325,262
94,496
25,155
15,787
481
2,196,636
24,545
8,897
5, 460
129
323,653
17,678
5,112
4,510
1,128
2,737
869
82
26
203,601 10/ 77,928
1.46
78
106
5
1,274
3,609
44,160
3,181
7,904
1,751
5] 714
16
177
40,850 1,575,419
1,789
2] 911
2] 905
110
77,190
4,044,916
1,698,642
27,229
1,726,436
546,111
5,648
210,419
51,595
1; 540
126,846 13/ 53,978
24,639 12/ 25,232
988
504
658
293
12
28,938 1,501,829
1,43C
220] 076
55
2,894
14,057
3] 965
l]985
650,406
331,815
25,544
451,582
68,855
21,455
81,999
21,267
651
68
442,512
142,910
47,257
1,669
21,542
5,176
659
70
27,963
(Continued on following page)
7,573
67
11,655
75,771
SOS
9,610
8,966
118
8,529
148
164
12
L,083,952 114,056
62
63
64
65
66
67
69
Table 1. - c° ^ « t l o n retu™,, 1941, filed through December SI, 1942, by major industrial groups, for returns with net income end with no net income,
turns, total
°f* inco“ or <*®f*c**»
dlTidendd P8^ In essh and assets other than own stock; also, for wtaras
with net incomes Normal tax, surtax, declared value excess-profits tax, and excess profits tax (continued)
Number
(Money figures in thousands of dollars)
Returns with net incone
Total
of re
turns
Number
returns
Total
compiled
receipts
Net
income 1/
y
Total
tax
Normal
tax 6/
*8*833
y
Finance, insurance, real estate, and
lessors of real property ( Continued)
Finance ( Continued)
Ihvestment trusts and investment
companies 11 /
Other Investment companies,
including holding oowpanias 12/
Security end commodity-exchange
brokers and dealers
Other finance companies
Finance not allocable
Insurance carriers, agents, etc.
Insurance carriers
Insurance agents, brokers, etc.
Baal estate, including lessors of
buildings
lessors of real property, except
buildings
Construction
Agriculture, forestry, and fishery
Agriculture and services
FCrestry
Fishery
Nature of business not allocable,
except trade
for footnotes,
see pages 14-16.
\J
Returns with no net income
Taxes
Surtax
y
Declared
value
excessprofits
tax 3/
Excess
profits
tax Kj
dividends
paid in
cash and Number
assets
of
other
returns
than own
dividends
Total
compiled
receipts
Deficit
y
y
cash and
asaets
other
than own
5,991
2,522
218,482
150,819
7,402
5,687
1,662
12
42
145,892
1,56a
60,047
68,458
21,620
71
2,411
1,488
1,418,946
1,020,881
89,595
58,599
16,709
179
14,108
820,578
865
90,541
207,524
29,558
72
10,042
.4,194
75
55,020
2,762
17,297
1,528
554,461 16,658
552,276 16,422
2,185
255
267,760 15,554
74
75
76
77
78
79
1,847
824
159,946
12,646
2,604
1,857
465
19
235
8,140
956
75,470
2,085
5,667
8,590
2,116
6,474
97,291
657
1,279
4^490
821
5,669
55^861
66,692
52,467
1,974'048
1,778,591
195,457
1,085,116
56,528
10,892
185,646
146,687
SA 059
171,661
8,541
2,486
56,561
25,560
1,492
540
8,274
6,271
2,004
8,478
64
12
100
14
59,975
5,459
1,895
25,875
17,111
6,762
28,126
1,545
41
4,514
1,964
2,549
2,909
17,454
11,024
107,116
89, SOL
17,6lS
75,102
1,108
1,965
5,728
1,152
2,596
55,245
14,660
12,987
1,756,679
1,718,978
57,701
959,156
8,046
5,027
221,182
114,895
56,699
24,757
7,198
55
4,690
95,572
4,162
54,411
50,149
1,846
80
16,012
8,415
7,527
549
557
22,529
8,205
5,944
5,595
202
149
2,176
5,089,455
650,777
586,997
14,466
29,514
154,765
199,564
81,747
76,775
2,807
2,165
18,549
82,067
22,945
18,155
844
5,966
5,140
51,925
14,556
15,685
480
571
2,850
8,695
4,088
5,845
157
106
799
2,215
590
517
15
59
115
59,256
5,752
51,981
50,855
28,805
1,621
429
6,119
6,795
5,957
5,505
294
158
5,125
440,479
121,840
110,954
5,755
5,151
58,647
21,685
18,624
15,491
4,475
660
58,517
1,247
1,571
481
890
(18)
10,101
81
82
85
84
85
11,202
461
88
215
5,450
1,596
86
with no net incomes
« ! « » through ?•««*«: 51, 1942, by major Industrial groups, for returns with net incone and
Dividends received can stock of domestic corporations and interest received on Government obligations
(Honey figures in thousands of dollars)
25/
All industrial groups
Mining and quarrying
Metal mining
Anthracite
Bitnlnous coal, lignite, peat, etc.
Crude petroleum and natural gas
production
Vonmetallic mining and quarrying
Mining and quarrying not
Manufacturing
food and kindred products
Beverages
Tobacco manufactures
Cotton manufactures
Textile-mill products, except cotton
ipparel and products mads from fabrics
leather and products
Bibber products
Lumber and timber basic products
Furniture and fini shed lumber products
Paper and allied products
Printing and publishing industries
Chemicals and allied products
Petroleum and coal products
Stoss, clay, and glass products
Iren, steal, and products
Ronferrous metals and their products
Electrical machinery and equlpaient
Machinery, except transportation
equipment and electrical
Automobiles and equipment, except
electrical
Transportation equipment, except
automobiles
Other manufacturing
Manufacturing not allocable
Public utilities
Transportation
Communication
Other public utilities
2,091,625
52,677
59,406
59
5,166
6,591
set received on Government ohUmit ions
Subject to
received
Wholly
declared
Subject
Wholly on stock
“total
taxable value
to sur
taxof domes
excesstax only
IS/
exempt tic corpo
profits
rations
!§/
12/
tax and
15/
surtax 15/
552,157
2,769
1,051
175
795
627
Returns with no m t <nw«
total
29,592
145
103
9
a
8
297,557
1,207
49S
157
185
290
55,565
50
24
(18)
16
6
149,444
1,866
410
6
575
828
145,745
2,758
355
1S9
1,077
1,095
515,606
186
15
44
66
59
5,949
2,469
7,585
17,946
72,658
189,251
9,562
28,882
17,581
15,576
12,474
5
1,549
41
20
10
12
22
6
5
8
11
40
42
104
100
50
81
no
45
44
n?
81
1
10,841
719
209
525
170
250
122
90
65
170
188
578
957
1,286
754
515
1,078
280
598
1,793
4
(18)
1,205
74
8
46
5
14
4
2
8
6
18
84
52
241
140
65
67
26
206
ISO
58
(18)
8,504
779
197
112
212
221
81
90
50
124
257
188
796
1,415
885
274
596
174
469
1,458
55
(18)
5,516
105
59
57
9
78
28
237
26
150
22
27
615
9U
159
705
45
24
2S
184
5
(18)
566
47
1
(18)
2
18
5
(18)
*•
15
12
1
155
55
6
52
20
1
(18)
18
45,400
417
1,457
17
498,578
56,655
2,850
4,485
2,569
5,960
1,841
1,755
6,221
10,704
6,510
2,558
185,812
74,855
15,755 :
47,204
246
205
5,112
5,559
155
1,619
515
a
881
1
2
21
154
25
159
5
1
57
8
289
157
15
119
101
129
5,275
2.368
45
862
18
2
540
101
5
254
a
67
1,208
782
75
408
82
25
5,064
2,568
18
678
5
8
547
502
(18)
45
for footnotes, see pages 14-16.
(Continued on following page)
Wholly
taxable
is/
8,748
4
1
1
1
(18)
.
28
4
(18)
-
-
Subject to
declared
value
excessprofits
tax and
surtax 15/
Subject
to sur
tax only
!§/
Wholly
taxexempt
17/
169,684
151
5
42
88
46
7,545
1
129,629
SO
10
1
25
12
1
(18)
•
•
1
(18)
•
190
26
1
(18)
(18)
n
5
-
4
1
sm
1
(18)
144
17
(18)
4
•
mm
2
7
2
(18)
«■»
—
1
2
(IS)
15
4
1
1
2
•
(18)
(18)
8
1
80
15
2
16
6
1
(IS)
18
-
5
-
2
-
(18)
1
-
-
(18)
4
(18)
164
155
(18)
9
26
2
me '
25
19
(18)
6
4
«•
•
1
•
(18)
1
*•
me
14
2
(18)
42
15
8
15
11
II
Major industrial groups 5/
f received
on stock
of domes
tic corpo
rations
1
8
182
125
-
25
8
(Money figures In thousands of dollars)
Major industrial groups 5/
57
38
59
40
41
42
45
44
45
45
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
65
64
65
66
67
68
69
70
Trade
Wholesale
Comission Merchants
Other wholesalers
Retail
General Merchandise
Food stores, including market
milk dealers
Package liquor stores
Drug stores
Apparel and accessories
Furniture and house furnishings
Sating and drinking places
Automotive dealers
Filling stations
Hardware
Building materials, fuel and ice
Other retail trade
Retail trade not allocable
Trade not allocable
Service
Hotels and other lodging places
Personal service
Business service
Automotive repair services and
garages
Miscellaneous repair services,
trades
Motion pictures
Amusement, except motion pictures
Other service, including schools
Service not allocable
Finance, insurance, real estate, and
lessors of real property
Finance
Banks and trust companies
Long-term credit agencies, mortgage
companies, except banks
Short-term credit agencies, except
banks
Fbr footnotes, see pages 14-16.
Dividends
received
on stock
of domes
tic corpo
rations
13/
Returns with net incomo l/~
Interest received
Subject to
Wholly
declared
Subject
"total
taxable value
to sur
14/
excesstax only
profits
16/
tax and
surtax 15/
59,241
53,646
7,229
26,417
23,351
10,721
3,683
3,863
1.708
168
1,541
1.709
670
157
302
194
10
185
89
34
6
(18)
1,878
2,370
490
1,094
631
237
98
1,049
623
475
2,244
24,102
1,224
474
2,997
26
19
183
77
33
69
170
37
119
151
44
446
725
45
98
170
2
12
3
1
6
(18)
1
13
4
7
19
54
6
9
16
6
12
10
18,667
575
328
(18)
1,505>092
1,711
663
29
633
890
375
83
Wholly
taxexempt
12/
169
55
4
51
95
19
9
1,681
797
125
672
635
243
59
«
9
105
33
22
50
86
2
44
66
15
158
262
27
37
89
3
(18)
6
6
3
1
36
(18)
11
2
1
20
22
2
4
6
(18)
Dividends
received
on stock
of domes
tic corpo
rations
Total
Wholly
taxable
14/
15/
1,416
501
77
424
607
25
120
(18)
7
17
34
16
8
61
35
7
12
48
33
51
58
21
248
387
10
48
59
3
508
1,310
184
116
94
14
25
5
(18)
215
125
21
235
SB
11
48
151
2
72
36
5
(18)
4
SO
1
1
Subject to
declared
value
excessprofits
tax and
surtax 15/
76
17
8
9
57
(18)
25
Subject
to sur
tax only
16/
26
22
22
4
-
5
*
(isj
2
7
56
(18)
(18)
(18)
24
3
5
24
566
61
7
67
(18)
(18)
2
(18)
1
(18)
283
19
95
8
3
5
41
11
52
3
(18)
6
231
5
32
495,767
27,263
279,215
53,745
135,544
55
55
792
(18)
131,883
10
12
408
2
S,501
(18)
(18)
21
-
is
4
2
(18)
2
11
2
1
3
(18)
:
(IS)
1
1
12
(18)
(18)
13
(18)
4
5
334
10
2
47
(18)
•
i
(18)
(18)
(18)
6
(18)
1
Wholly
taxoxempt
17/
94
IS
5
13
61
1
45
57
38
39
40
41
42
45
(18)
1
6
2
45
46
47
48
49
50
(18)
(18)
7
1
(18)
18
215
49
8
16
(18)
a.
52
55
54
55
56
57
SB
59
60
a
(18)
1
4
8,633
(18)
4
269
1
168,700
(18)
7,477
9
7
‘ 131
(18)
128,692
1,215,179
19,799
208
455,759
446,011
152
26,479
25,878
21
254,465
251,345
48
52,096
50,976
5
122,720
U.7'811
77
92,845
5,165
41
,838
,575
;142
4,451
4,338
5
25,144
24,511
70
7,114
7,019
5
55,129
32,507
1,065
67
9,289
132
40
41
10
91
64
22
2
4
-
16
70
(Continued on following page)
-
4
-
62
65
64
65
66
68
2* 7 Corporation returns, 1941, filed through December 31, 1942, by major industrial groups, for returns with net income and with
no net incomet Dividends received on stock of domestic corporations and interest received on Government obligations (Continued)
(Money figures in thousands of dollars)
Major industrial groups 5/
Dividends
received
on stock
of domes
tic corpo
rations
12/
71
72
78
74
75
76
77
78
79
80
81
82
83
84
85
86
finance, insurance, real estate, and
lessors of real property (Continued)
Mnanc e (Continued)
Investment trusts and investment
companies 11/
Other investment companies,
including holding companies 12/
Security and coimnodlty-exchangs
brokers and dealers
Other finance companies
finance not allocable
Insurance carriers, agents, etc.
Insurance carriers
Insurance agents, brokers, etc.
Beal estate, including lessors of
buildings
Lessors of real property, except
buildings
Construction
Agriculture, forestry, and fishery
Agriculture and services
Forestry
fishery
Nature of business not allocable,
except trade
fbr footnotes, see pages 14-16,
Returns with net income 1/
Interest received on Government
Subject to
Wholly
declared
Subject
Total
taxable value
to sur
14/
excesstax only
profits
16/
tax and
surtax 15/
Wholly
taxexempt
17/
Dividends
received
on stock
of domes
tic corpo
rations
15/
net income U
Interest received on Govertient. o h H ga-Mnnn
Subject to
Wholly
declared
Subject
Wholly
Tbtal
taxable value
to sur
taxexcesstax only
exempt
profits
16/
12/
tax and
surtax 15/
W
179,337
2,348
154
1,010
123
1,061
36,504
967,499
3,842
304
1,667
818
1,053
48,820
569
5,957
1,694
27
144
128
1,596
1,368
1,009
34
176
23,759
25,737
23
732
6
12
1,218
11,580
11,559
1,067
546
338
52,189
32,138
51
6,687
28
31
1,531
1,527
4
108
241,026
241,021
5
584
2
21
13,076
2,035
76,056
72,569
5,487
11,104
54
1,477
57,499
37,442
57
2,052
2,753
457
51
259
9
157
161
55
5,391
8,504
8,576
99
29
2,229
654
874
852
15
7
494
28
54
27
192
708
704
4
15
6
5
399
126
116
377
949
921
27
100
6
1
228
489
202
53
628
619
9
125
8
(18)
127
1
125
1
14
21
5
194
104
91
15
108
IS
67
40
255
72
53
290
28
658
75
( 18 )
15
80
145,349
145,545
5
187
5
545
545
(18)
19
12
101
95,195
95,194
74
75
76
77
78
79
(18)
28
80
(18)
56
75
81
82
85
84
85
8
4,159
4,158
1
38
20
5
2
2
(18)
58
29
25
6
25
2
1
1
554
1
540
66
7
172
71
86
Table 5. - Corporation returns, 1932-41, in aggregate and for returns with net income and with no net income*
total compiled receipts, net Income or deficit, and dividends paid in cash and assets other
than own stock; also, for returns with net income* Income tax,
declared value excess-profits tax, and excess profits tax
Number of returns,
(Money figures in thousands of dollars)
1941 19/
17
18
19
20
21
1940
1939
1938
1937
1936
All corporation returns*
Number of returns (excluding returns
468,902
473,042
469,617
471,032
477,838
478,857
of inactive corporations)
Total compiled receipts 7/
190,432,020 148,236,787 132,878,224 120,453,946 142,443,379
132,722,602
Net inoome less daficit 1/
16,332,540
8,919,429
6,734,565
3,672,882
7,353,991
7,326,218
Total tax liability
7,165,574
2,548,546
1,232,256
859,566
1,276,172
1,191,378
Income tax
2/ 5,744,571 2/ 2,144,292
1,216,450 2Q/ 853,578 21/1,232,837 22/1,169,765
Declared value excess-profits tax
5/ 64,453
1/ 30,744
15,806
5,988
43,335
21,613
Excess profits tax 4/
5, 356,'551
373,511
Dividends paid in cash and assets
6,700,787
6,088^781
5,746,739
5,013,433
7,514,017
7,379,333
other than own stock
Returns with net income 2/t
Number of returns
264,625
220,977
199,479
169,884
192,028
203,161
Total compiled receipts 7/
175,181,824 125,180,472 105,658,338
80,267,477 109,202,739 105,011,693
Net income 1/
18,111,092
11,203,224
8,826,713
6,525,979
9,634,837
9,478,241
Total tax liability
7,165,574
2,548,546
1,232,256
859,566
1,276,172
1,191,378
Income tax
2/ 3,744,571 2/ 2,144,292
1,216,450 § 3/ 853,578 21/1,232,837 2§/l,169,765
Declared value excess-profits tax
5/ 64,455
3/ 30,744
15,806
5,988
43,335
21,613
Excess profits tax 4/
5,356,551
373,511
Dividends paid in cash and assets other
6,518,177
5,888^325
5,562,273
4,780,202
7,308,774
7,179,220
than own stock
Returns with no net income l/j
Number of returns
204,277
252,065
270,138
301,148
285,810
275,696
Total compiled receipts 7/
15,250,197
25,056,316
27,219,886
40,186,469
53,240,640
27,710,909
Deficit y
1,778,553
2,283,795
2,092,148
2,853,098
2,280,846
2,152,024
Dividends paid in cash and assets
182,610
200,457
184,466
233,231
205,243
200,112
other than own stock
Number of returns of Inactive
40,160
43,741
46,343
49,469
51,259
51,922
corporations
1935
477,113
114,649,717
1,695,950
735,125
710,156
23/ 24,969
1934
1933
1932
469,804
446,842
451,884
101,489,954
84,234,006
81,637,988
94,170 25/2,547,567 2§/5,643,574
596,048
425,069
285,576
588,375
416,093 24/ 285,576
23/ 7,673
26/ 6,976
5,940,620 24/4,859,579
3,127,459
5,885j601
145,101
65,118,536
4,275,197
596,048
588,575
25/ 7,673
109,786
46,906,664
2,985,972
423,069
416,093
26/ 6,976
82,646
51,855,431
2,153,113
285,576
24/ 285,576
4,651,002 24/3,822,599
2,385,889
2,320,586
337,056
37,527,342
5,533,539
741,570
569,238
49,782,556
7,796,687
1,565,215
57,238
56,752
164,231
77,638,952
5,164,723
735,125
710,156
23/ 24,969
312,882
57,010,765
3,468,774
1,289,618
324,703
38,371,418
4,181,027
1,056,781
56,518
59,094
____ u
20
21
14 -
V
Footnotes for tables in this
1/
"Net income" or "Deficit" for 19 4 1
5/
in 1940) is the amount reported for
declared value excess-profits tax computatIon (item 30, page l, Form 1120)
adjusted by excluding net operating
counts for the largest percentage of
receipts. Therefore, an industrial
group may contain data for Industrial
activities other than that on which
the classification is based.
difference between "Total income" and
"Total deductions"; for 1933-35 is the
amount reported for income tax compu
tation; and for 1932 is the current
year net income before deduction of
prior year loss. Net income or defi
6/
Total number of returns includes re
turns of inactive corporations.
cit as here defined is the basis for
classification of the returns by those
with net income and those with no net
J
"Total compiled receipts," as tabulated,
consists of gross sales (less returns
income for all years except 1936 when
the classification was based on the
and allowances), gross receipts from
net income for Income tax computation
which is less than the net income for
an income-determining factor), taxable
Interest received on other than Govern
(declared value) excess-profits tax
computation by the amount of the (de
clared value) excess-profits tax.
ment obligations, taxable, tax-exempt,
and partially tax-exempt Interest re
operations (where inventories are not
ceived on Government obligations, rents
and royalties, net short-term capital
gain, net long-term capital gain, neb
gain from sale or exchange of property
other than capital assets, dividends,
and other receipts required to be in
cluded in gross income.
"Total com
Amount shown as Income tax for taxable
years beginning in 1940 includes in
come defense tax; for taxable years
beginning after 1940; such amount con
sists of normal tax and surtax, the
defense tax being incorporated in the
normal tax.
(See also notes 8 and 9 .)
3/
A corporation is classified industri
ally according to the business activ
ity reported on the return. When
multiple businesses are reported on
a return, the classification is de
termined by the activity which ac
loss deduction (Item 26, page l, Form
1120); for 1936-39 is the amount re
ported for (declared value) excessprofits tax computation and is the
2/
release
(as
piled receipts" excludes nontaxable
income other than tax-exempt interest
received on certain Government obliga
tions.
Amount shown as declared value excessprofits tax for taxable years ending
between July l, 1940 and June 30, 1941,
Includes declared value excess-profits
defense tax; for taxable years ending
after June 30, 1941, such amount con
sists of declared value excess-profits
tax only, the defense tax being incor
porated therein.
8/
Normal tax shown for 1941 includes
$305,621,885 income and income defense
taxes reported on returns for a fiscal
year ending in period July through
November 1941 (and on returns for a
part year beginning in 1940 and ending
in 1941, the greater part of the ac
counting period falling in 1941), and
4/
The excess profits tax shown is that im
posed for taxable years beginning after
December 31, 1939, by section 710 of the
Internal Revenue Code as amended. For
1940, the amount tabulated is the excess
profits tax liability reported on corpo
ration excess profits tax returns, Form
1121; for 1941, the#amount tabulated is
the excess profits tax deduction (item
35, page l, Form 1120) allowed in the
computation of normal-tax net income.
$2,641,949,316 normal tax reported on
returns for the calendar year 1941 and
on returns with a fiscal year ending in
period January through June 1942 (and
on returns for a part year beginning
and ending in 1941, and for a part year
beginning in 1941 and ending in 1942,
the greater part of the accounting
period falling in 1941) .
9/
The surtax levied under section 15 of the
Internal Revenue Code, as amended by the
Revenue Act of 1941, applies to taxable
years beginning after December 31 , 1940
15 -
Footnotes for ta b les In th is release - Continued
10/
*”
The surtax shown Includes $105,221 reported on returns with no net Income,
15/
filed by banks and trust companies.
A surtax liability may exist on a re
turn with no net income If receipts
profits tax and surtax, consists of Inter
est on United States savings bonds and
Treasury bonds owned In principal amount
of over $5,000 Issued prior to March 1,
1941, reported as item 8(a), page l, Form
for the taxable year Include Interest
on obligations of certain Instrumen
talities of the United States, de
scribed in note 16, such Interest being
added to the net income for declared
value excess-profits tax computation
In the process of computing the surtax
net income.
1120 .
16/
17/
during the taxable year had Investments
In corporations In which they owned 50
percent or more of the voting stock.
12/
~
trict of Columbia, and United States posses
sions; obligations of the United States Is
sued on or before September l, 1 9 1 7 ;
holding companies" consists of (1) cor
porations which derived 90 percent or
13/ Dividends from domestic corporations subJect to Income taxation under chapter l
of the Internal Revenue Code (column 2,
Treasury notes, Treasury bills, and Treasury
certificates of Indebtedness Issued prior to
March l, 1941; obligations Issued prior to
March l, 1941, under Federal Farm Loan Act,
or under such Act as amended; and United
States savings bonds and Treasury bonds
owned In principal amount of $5,000 or less
Issued prior to March 1 , 1 9 4 1 .
18/
Less than $500.
19/
Preliminary figures.
20/
Income tax shown for 1938 consists of
schedule E, page 5, Form 1120), which Is
the amount used for the computation of
the dividends received credit. Excludes
dividends from corporations organized
under the China Trade Act, 1922, and
corporations entitled to the benefits of
section 251 of the Internal Revenue Code '
(corporations receiving a large portion
of their gross Income from sources within
a possession of the United States).
14/
"""*
Interest received on Government obligations, wholly taxable, consists of Interest
on Treasury Notes of the National Defense
Series and obligations Issued on or after
March
1941, by the United States or any
agency or Instrumentality thereof, reported
Interest received on Government obligations,
wholly tax-exempt, consists of Interest on
obligations of States, Territories, or
political subdivisions thereof, the Dis
The Industrial classification designated
"Other Investment companies, Including
more of receipts from Investments and
which at some time during the taxable
year had Investments In corporations In
which they owned 50 percent or more of
the voting stock, and (2) corporations
which derived less than 90 percent but
more than 50 percent of receipts from In
vestments.
Interest received on Government obligations,
subject to surtax only, consists of Inter
est on obligations of Instrumentalities of
the United States (other than obligations
issued prior to March l, 19 4 1, under Federal
Farm Loan Act, or under such Act as amended)
Issued prior to March l, 1941, reported as
Item 31, page 1 , Form 1120.
11/ The industrial classification designated
*“
"Investment trusts and investment com
panies" consists of corporations which
derived 90 percent or more of receipts
from Investments and which at no time
Interest received on Government obligations,
subject to both declared value excess-
$41,569,498 normal tax and $7,778,561 sur
tax on undistributed profits reported on
returns for a fiscal year ending in period
July through November 1938 (and on returns
for a part year beginning In 1937 and end
ing In 1938, the greater part of the ac
counting period falling in 1938), and
$804,230,054 Income tax reported on returns
for the calendar year 1938 and on returns
with a fiscal year ending In period January
through June 1939 (and on returns for a
part year beginning and ending in 1938, and
for a part year beginning in 1938 and ending
In 1939, the greater part of the accounting
period falling In 1938).
li
as Item 8(b), page l, Form 1120.
21/
Income tax shown for 1937 consists of
$1,056,939,166 normal tax and $175,897,696
surtax on undistributed profits.
? 16 Footnotes for tables In this release - Continued
22/
f~
Income tax shown for 1936 consists of
income for Income tax purposes because
the credit for Interest received on cer
$59,289,827 Income tax reported on re
turns with fiscal year ending In period
July through November 1936 (and on re
turns for a part year beginning In 1935
tain obligations of the United States and
Its Instrumentalities, which was allowed
against net Income In the computation of
and ending In 1936, the greater part of
the Income tax, was not allowed against
the accounting period falling In 1936),
net Income In the computation of the (de
clared value) excess-profits tax.
and $965,503,111 normal tax and
$144,972,284 surtax on undistributed
profits reported on returns for the
24/
fiscal year ending In period January
through June 1937 (and on returns for a
part year beginning and ending In 1936,
and for a part year beginning In 1936
and ending In 1937, the greater part of
the accounting period falling In 1936).
23/ The (declared value) excess-profits tax
""
shown for 1934 and 1935 Includes a small
amount of (declared value) excess-profits
tax which appears on returns with no net
Revised.
1934: See Statistics of Income for
Part 2, page 9, footnote 2.
calendar year 1936 and on returns with
1935,
1932: See Statistics of Income for 1933,
page 37.
25/
Deficit In excess of net income.
26/
The (declared value) excess-profits tax for
1933 became effective June 30, 1933, under
section 216 of the National Industrial Re
covery Act..
- 3f 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 u b se q u e n t p u r c h a s e , and th e amount
a c t u a l l y r e c e iv e d e i t h e r upon s a l e o r re d e m n tio n a t m a tu r it y d u rin g th e ta x a b le
y e a r f o r w hich th e r e t u r n i s made, a s *»rdinary g a in o r l o s s .
T re a s u ry D ep artm en t C i r c u l a r No. 4 18, a s am ended, and t h i s n o t i c e , p re - j
s c r i b e th e te rm s o f th e T re a s u ry b i l l s and g o v e rn th e c o n d itio n s o f t h e i r is s u e , i
C opies o f th e c i r c u l a r may be. o b ta in e d from an y F e d e r a l R e se rv e Bank o r B ranch.
;;'
•.
■ ■ ■ f
J
m
h
||8N39
;;11 •1
1
R eserv e Banks and B ra n c h e s, f o llo w in g w hich p u b li c announcem ent w i l l be made by the!
S e c r e t a r y o f th e T re a s u ry o f th e am ount and p r i c e ra n g e o f a c c e p te d b id s .-
Those ' I
s u b m ittin g te n d e r s w i l l be a d v is e d o f th e a c c e p ta 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 o f th e T re a s u ry e x p r e s s ly r e s e r v e s th e r i g h t to a c c e p t o r r e j e c t any or
a l l t e n d e r s , i n w h o le o r i n p a r t , and h i s a c t i o n i n an y such r e s p e c t s h a l l be f in a l|
S u b je c t to th e s e r e s e r v a t i o n s , te n d e r s f o r $10 0 ,0 0 0 o r l e s s from any one b id d e r a t I
99*905 e n te r e d on a f i x e d - p r i c e b a s i s w i l l b e a c c e p te d i n f u l l .
Paym ent o f accepted
te n d e r s a t th e p r i c e s o f f e r e d m ust be made o r co m p lete d a t th e F e d e r a l R eserve Bank]
A ugust 4» 1943
»
&ZQE
The incom e d e r iv e d from T re a s u ry b i l l s , w h e th e r i n t e r e s t o r g a in from
i n cash o r o t h e r im m e d ia te ly a v a i l a b l e fu n d s on
j
th e s a l e o r o th e r d i s p o s i t i o n o f th e b i l l s , s h a l l n o t have any e x em p tio n , a s such,
and l o s s from th e s a l e o r o th e r d i s p o s i t i o n o f T re a s u ry b i l l s s h a l l n o t have any
s p e c i a l tr e a tm e n t, a s s u c h , u n d e r F e d e r a l ta x A c ts now o r h e r e a f t e r e n a c te d .
The
b i l l s s h a l l be s u b j e c t to 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 is e ta x e s , whether j
F e d e r a l o r S t a t e , b u t s h a l l be exem pt fro m 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 th 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 an y S t a t e , o r an y o f th e p o s s e s s io n s of
th e U n ite d S t a t e s , o r by any l o c a l t a x in g a u t h o r i t y .
F o r p u rp o s e s o f ta x a tio n the 1
am ount o f d is c o u n t a t w h ich T re a s u ry b i l l s a r e o r i g i n a l l y s o ld by th e U n ite d States |
s h a l l be c o n s id e r e d to b e i n t e r e s t .
Under S e c tio n s 42 and 117 (a ) ( l ) o f th e
I n t e r n a l Revenue Code, a s amended by S e c tio n 115 o f th e Revenue A ct o f 1941 , the
J
am ount o f d is 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 ld s h a l l n o t be considered!
to a c c ru e u n t i l such b i l l s s h a l l b e s o ld , redeem ed o r o th e r w is e d is p o s e d o f, and
such b i l l s a r e e x c lu d e d from c o n s id e r a tio n a s c a p i t a l a s s e t s .
A c c o rd in g ly , the
owner o f T re a s u ry b i l l s ( o t h e r th a n l i f e in s u r a n c e com panies) is s u e d hereu n der
n eed in c lu d e i n h i s incom e t a x r e t u r n o n ly th e d i f f e r e n c e b etw een th e p r ic e paid
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, July 30, 1943_________ •
T he1S e c r e t a r y o f th e T re a s u ry , b y t h i s p u b li c n o t i c e , i n v i t e s te n d e rs
f o r $ ljQQQ^Q^OjOOQ > o r th e r e a b o u ts , o f
92^ - day T re a s u ry b i l l s , to b e is s u e d
|
on a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r pro- j
v id e d .
The b i l l s o f t h i s / s e r i e s w i l l b e d a te d
m a tu re
L. 19AS
in te re s t.
A u g u st^
1943
> and w ill
» when th e f a c e am ount w i l l be p a y a b le w ith o u t
j
They w i l l be i s s u e d i n b e a r e r form o n ly , and i n d e n o m in a tio n s o f $1,000,
$ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 500 , 000 , and $ 1 ,0 0 0 ,0 0 0 ( m a t u r ity v a l u e ) .
T en d ers w i l l b e r e c e iv e d a t F e d e r a l R e se rv e Banks an d B ran ch es up to the
c l o s i n g h o u r , two o ’ c lo c k o . m ., E a s te r n War tim e ,
Monday, August 2, 1943_____ •
T en d ers w i l l n o t be r e c e iv e d a t th e T re a s u ry D e p a rtm e n t, W ash in g to n .
Each tender
m ust be f o r an even m u l tip l e o f $ 1 ,0 0 0 , and th e p r i c e o f f e r e d m u st be expressed
on th e b a s i s o f 1 0 0 , w ith n o t more th a n t h r e e d e c im a ls , e . g . , 9 9 .9 2 5 .
may n o t b e u s e d .
F ractions 1
I t i s u rg e d t h a t te n d e r s b e made on th e p r i n t e d form s and fo r
w arded i n th e s p e c i a l e n v e lo p e s w hich w i l l be s u p p lie d by F e d e r a l R eserv e Banks
o r B ran ch es on a p p l i c a t i o n t h e r e f o r .
T enders w i l l be r e c e iv e d w ith o u t d e p o s it from in c o r p o r a te d banks and
t r u s t com panies and from r e s p o n s ib le and re c o g n iz e d d e a l e r s i n in v e s tm e n t securi-':*
tie s .
T en d ers from o th e rs , m ust b e accom panied by paym ent o f 2 p e r c e n t o f the face!
am ount o f T re a s u ry b i l l s a p p l ie d f o r , u n le s s th e te n d e r s a r e accom panied by an
3
e x p r e s s g u a ra n ty o f paym ent b y an in c o r p o r a te d bank o r t r u s t company.
Im 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 a t th e Fede^B
3
7 -$ 0
TREASURY DEPARTMENT
W ashington
FOR RELEASE, MORNING NEWSPAPERS,
F rid ay * J u ly 30, 1943.____________
7 -2 9 -4 3
The S e c r e t a r y o f t h e ' T re a s u ry , by t h i s p u b li c n o t i c e , i n v i t e s ■te n d e r s
fo r 1 1 ,0 0 0 ,0 0 0 ,0 0 0 , Or th e r e a b o u t s , o f 9 2 -d a y T re a s u ry b i l l s , t o be is s u e d on
a d is c o u n t b a s i s u n d e r c o m p e titiv e an d f i x e d - p r i c e b id d in g a s h e r e i n a f t e r p r o
v id e d .
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 te d A ugust 4 , 1943, and w i l l m a tu re
November 4 , 1943, when th e f a c e amount, w i l l be p a y a b le w ith o u t i n t e r e s t .
They
w ill be is s u e d i n b e a r e r form o n ly , an d i n d en o m in a tio n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 ,
I
$10,000, $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 , and $ 1 ,0 0 0 ,0 0 0 ( m a t u r ity v a l u e ) .
Tenders w i l l be r e c e iv e d a t F e d e r a l R eserv e Banks and B ranches up t o th e
c lo s in g h o u r, two o 1c lo c k p , m«, E a s te r n War tim e , Monday, A u g u s t-2, 1943*
Tenders w i l l n o t be r e c e iv e d a t th e T re a s u ry D ep artm en t, W ash in g to n . Each te n d e r
i | must be f o r an ev en m u l tip l e o f $ 1 ,0 0 0 , and th e p r i c e o f f e r e d m ust be e x p re s s e d
on th e b a s i s o f 1 00, w ith n o t more th a n t h r e e d e c im a ls , e . g . , 99*925# F r a c ti o n s
may n o t be u s e d . ‘I t i s u rg e d t h a t t e n d e r s be made on th e p r i n t e d form s and f o r —
Si . warded i n th e s p e c i a l e n v e lo p e s w hich w i l l be s u p p lie d by F e d e r a l R eserv e Banks
or B ranches on a p p l i c a t i o n t h e r e f o r .
T enders w i l l b e r e c e iv e d w ith o u t d e p o s it from in c o r p o r a te 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 in v e s tm e n t s e c u r i t i e s .
1 Tenders from o t h e r s m ust be accom panied by paym ent o f 2 p e r c e n t o f th e face,
amount o f T re a s u r y b i l l s a p p lie d f o r , u n l e s s th e te n d e r s a r e accom panied b y ;ari
express g u a r a n ty o f paym ent b y an in c o r p o r a te d bank o r t r u s t company.
-
:
r
I
Im m e d ia te ly a f t e r th e c l o s i n g h o u r, te n d e r s w i l l be opened a t - t h e F e d e r a l
Reserve Banks and B ran ch e s, f o llo w in g w hich p u b lic announcem ent w i l l be made by
the S e c r e ta r y o f th e T re a s u ry o f th e amount and p r i c e ra n g e o f a c c e p te d b i d s .
Those s u b m ittin g te n d e r s w i l l be a d v is e d o f t h e a c c e p ta 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 ta r y o f th e T re a s u ry e x p r e s s ly r e s e r v e s th e 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 w hole o r i n p a r t , and h i s a c t io n i n any su c h r e s p e c t s h a l l
be f in a l* S u b je c t to th e s e r e s e r v a t i o n s , te n d e r s f o r $ 1 0 0 ,0 0 0 o r l e s s from any
one b id d e r a t 9 9 .9 0 5 e n te r e d on a f i x e d - p r i c e b a s i s w i l l be a c c e p te d i n f u l l .
Payment o f a c c e p te d te n d e r s a t th e p r i c e s o f f e r e d m ust be made o r co m p lete d a t
the F e d e ra l R eserv e Bank i n 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 fu n d s on
August 4 , 1943*
The incom e d e riv e d from T re a s u ry B i l l s , w h e th e r i n t e r e s t o r g a in from
the s a le o r o th 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 an y ex em p tio n , a s su c h ,
and lo s s from th 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 re a su ry b i l l s s h a l l n o t have any
s p e c ia l tr e a tm e n t, as s u c h , u n d er F e d e r a l t a x A cts now o r h e r e a f t e r e n a c te d . The
(0 re r)
■
37-BO
- 2 *'
/ t ■* ., / ; ; ,•
-<''M
b i l l s s h a ll be s u b je c t .t o e s ta t e , in h e rita n c e , g i f t , o r o th e r e x c is e .ta x e s ,
; 1
■whether F e d e r a l o r S ta te ,- b u t s h a l l be exempt from a l l t a x a t i o n n o w /o r h e r e a fte r I
im posed on th e p r i h 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 th e posses
sions* o f t h e U nited- S ta te s .,. o r by any l o c a l ta x in g a u t h o r i t y . .F o r p u rp o se s o f
t a x a t i o n th e amount o f d is c o u n t a t w hich T re a su ry b i l l s a r e o r i g i n a l l y s o ld by tht
U n ite d S t a t e s s h a l l be c o n s id e r e d t o be i n t e r e s t *
Under S e c tio n s 42 and 117 (a) ;
( 1 ) Of th e I n t e r n a l Revenue Code, a s amended b y S e c tio n 115 o f th e Revenue Act of 1
1941, /th e -amount o f d is c o u n t a t w h ich b i l l s , is s u e d h e re u n d e r a r e , s o l d s h a l l not i
be c o n s id e r e d t o a c c ru e u n t i l su c h b i l l s s h a l l be s o ld , redeem ed o r o th e rw ise
d is p o s e d .:o f, and .su c h b i l l s , a r e e x c lu d e d from c o n s id e r a tio n a s , c a p i t a l a s s e ts .
A c c o rd in g ly , th e owner o f T re a su ry b i l l s ( o t h e r th a n l i f e in s u r a n c e com panies)
i s s u e d h e re u n d e r h eed in c lu d e in .his income t a x r e t u r n o n ly th e d if f e r e n c e between
th e p r i c e p a id f o r .su ch 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 o h s u b se q u e n t purchase
a n d .th e amount a c t u a l l y r e c e iv 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 tu r ity .dimingj
th e t a x a b l e y e a r f o r w hich th e r e t u r n i s m ade, a s o r d in a r y g a in o r lo s s *
. ■u■
’. *J . ■‘
_*v
T re a s u ry D epartm ent C ir c u la r No. 418, a s amended, and t h i s notice,* prescribe
th 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 ern th e c o n d itio n s o f t h e i r i s s u e . Copies
o f th e c i r c u l a r may be o b ta in e d from an y F e d e r a l R eserv e Bank o r B ran ch .
—
.
governm ent c h e c k s , and many s t a t e , c o u n ty , and m u n ic ip a l governm ents and banks
have fo llo w e d t h i s le a d by p r i n t i n g “Know Your E n d o rs e r — R eq u ire I d e n t i f i c a t i o n y fa rn in g s ^ on t h e i r o f f i c i a l c h e c k s .
As a p a r t o f i t s Crime P r e v e n tio n p ro g ram , th e S e c r e t S e r v i c e ^ assem bled
an e x te n s iv e c o l l e c t i o n o f g en u in e and c o u n t e r f e i t money, in c lu d in g specim ens
o f “w a r15 c u r r e n c i e s , in v a s i o n money, J a p a n e s e c o u n t e r f e i t s and J a p a n e s e war
bonds.
I n c o o p e r a tio n w ith th e T r e a s u r y ’ s War S& ving4vltj^yfefld Bureau
E n g ra v in g and P r i n t i n g , U n ite d S t a t e s War S a v in g s Stamps w ere p r i n t e d a t th e se
e x h i b i t s , an d $50 0 ,0 0 0 i n War Bonds and Stamps w ere s o l d t o v i s i t o r s .
ShoYm
f i r s t i n R o c k e f e lle r C e n te r , New Y ork, and l a t e r i n D e t r o i t , C le v e la n d and
O m aha,vbhis d i s p l a y h as b e e n s e e n b y 1 5 0 ,0 0 0 p e r s o n s .
S e c r e t S e r v ic e A gents w ere f a c e d w ith many new p ro b lem s i n m e e tin g t h e i r
r e s p o n s i b i l i t y o f p r o t e c t i n g th e P r e s id e n t on h i s u n p re c e d e n te d jo u r n e y to
C a sab lan ca i n J a n u a r y .
T hrough c a r e f u l and th o ro u g h advance a rra n g e m e n ts , and
u n u s u a l p r o t e c t i v e p ro c e d u re s d u r in g th e t r i p , movements w ere e x e c u te d according
to p la n and w ere k e p t a c l o s e l y g u ard ed s e c r e t u n t i l th e news was r e le a s e d o f f i
c ia lly .
G re a t c a r e a l s o was ta k e n t o in s u r e th e P r e s i d e n t 's s e c u r i t y d u rin g his
c o n fe re n c e i n A p r il w ith P r e s id e n t A v ila Camacho of M ex ico , a t M o n te rre y , and
on M r. R o o s e v e lt’ s i n s p e c t i o n t o u r s o f w ar p l a n t s and army, cam ps.
S t a t i s t i c s f o r th e f i s c a l y e a r show to w h at d i r e s t r a i t s th e b u s in e s s of
c o u n t e r f e i t i n g h as com e.
Only, 159 p e rs o n s we r e / a r r e s t e d f o r o f f e n s e s in v o lv in s jjij
bogus b i l l s and c o i n s , com pared t o j l ? i n 1 9 4 2 ^ A r r e s t s f o r check f o r g e r ie s
d e c lin e d fro m 1171 i n 1942 to 1004 i n th e 1943 p e r i o d .
t r i a l s 93 p e r c e n t w ere C o n v ic te d .
Of o f f e n d e r s bro ught to
1
c a p tu r e d a c o u n t e r f e i t i n g p l a n t i n P h i l a d e l p h i a , an d a r r e s t e d George W. P la c e ,
who was a l l s e t to m a n u fa c tu re bogus $10 n o t e s .
rv-P-P/
P la c e was i d e n t i f i e d w ith
e lu d in g s a f e r o b b e r i e s , and was
2 0 to 4 0 y e a r s i n p r i s o n .
The
v i l l be 1w a it in g , wYlen an d i f he
o u t of p ris o n .
S e c r e t 'S e rv ic e o f f i c e r s , i n c o o p e r a tio n w ith th e A g r i c u l t u r a l A djustm ent
A d m in is tr a tio n , a so e gsb le d e v id e n c e t h a t r e s u l t e d i i y a r r e s t of s i x p e rs o n s m
Z m . O'- (2«-U_
C hickasaw C ounty, M i s s i s s i p p i , Soy .-m io h aiid fen g $ 4 00,000 i n governm ent f u n d s .
Ja m e s.C . B a r r e t t , c o u n ty farm a g e n t, and f i v e a s s o c i a t e s w ere c o n v ic te d o f sub
m i t t i n g num erous f a l s e c la im s f o r b e n e f i t p ay m en ts, of f o r g i n g c h e c k s, and
c o l l e c t i n g paym ents i l l e g a l l y .
S e n te n c e s ra n g e d from t e n m onths to f o u r y e a rs.
I t i s e x p e c te d - th a t c i v i l s u i t s w i l l r e c o v e r
o f th e . l o s s e s .
S c a r c e ly had C ongress e n a c te d l e g i s l a t i o n p r o v id in g d ep en d en cy and allowance
b e n e f i t s to th e f a m i l i e s o f p e r s o n n e l o f th e armed s e r v i c e s when th e S e c re t Servic e b eg an to S r g g f f i f t ] i t ^ c a m p A g n to make th e t h e f t and f o r g e r y of th e s e and
o th e r governm ent ch eck s d a n g ero u s and u n p r o f i t a b l e .
_ 2 -
Two P i t t s b u r g h d e a l e r s i n p h i l a t e l i c ite m s w ere s e n te n c e d to te rm s o f a
y e a r and a d a y i n p r i s o n a s a r e s u l t o f t h e i r n e a t l i t t l e schem e to d e f r a u d
c o lle c to r s ..
The d e a l e r s , C y r il J , Huber an d Adam K, B e r t , p le a d e d g u i l t y t o in v e n tin g
a - s e r i e s o f stam ps o f t h e i r own, b e a r in g th e w o rd in g "U . S . P o s ta g e - F r e e - F o r
th e Armed F o r c e s ” .
I t was a c o l o r f u l ite m w ith a r e d , w h ite , and b lu e d e s ig n
o f th e A m erican E a g le and a s h i e l d .
T here i c no su c h gen u in e sta m p .
S e c re t
S e r v ic e A gents s e i z e d 3 0 0 ,0 0 0 o f th e co m p lete d stam ps an d fo u n d a “f r a u d w ith in
f r a u d ” a l s o aim ed a t stam p c o l l e c t o r s .
H uber and B e r t had p r i n t e d s e v e r a l th o u
and o f th e stam ps w ith th e e a g le d e s ig n i n v e r t e d , t o make i t a p p e a r t h a t th e y
fL.
'
y^$u£uJL
w ere m i s p r i n t s and th e r e f o r e ^ u n u s u a l p h i l a t e l i c ilteiin •
S ix New Y ork.m en a r e a w a itin g t r i a l i n a somewhat s i m i l a r c a s e .
W ith the
c o o p e r a tio n o f P o s t O ffic e I n s p e c t o r s , t h e T re a s u ry o f f i c e r s a r r e s t e d
M o rris J . S t e r n , Abraham M. K a li s h , A lb e r t J . R a b in o w itz ,.M ic h a e l M. K aren,
H enry I i e b l i c h an d Mervyn B . Haycock on c h a rg e s o f m aking bogus " o v e r p r in ts ”
and p e r f o r a t i o n s on g en u in e p o s ta g e an d i n t e r n a l re v e n u e stam p s so a s t o make
them a p p e a r r a r i t i e s .
One $60 r o l l o f stam ps w h ich a r e d i s t r i b u t e d u n p e r f o r a te d was g iv e n bogus
p e r f o r a t i o n s so a s to make them a p p e a r " a c c i d e n t s ” .
New York p h i l a t e l i s t s who ;J
a s s i s t e d a g e n ts i n d e v e lo p in g th e c a s e s a id t h a t th e sta m p s, had th e y b een
I
g e n u in e ly p e r f o r a t e d , would have b e e n v a lu e d a t $ 6 ,0 0 0 i n c o l l e c t o r s ' c i r c l e s .
S e c r e t S e rv ic e . A g en ts a s s i s t e d Cuban a u t h o r i t i e s i n sm ash in g a Havana
gang engaged i n c o u n t e r f e i t i n g $50 n o te s o f th e F e d e r a l R eserv e Bank of New YoIt |
The p l a n t was s e i z e d , and s e v e n p e rs o n s a r e a w a itin g t r i a l i n th e Conan co
A gen ts o f th e S e r v ic e , w ith th e a s s i s t a n c e o f l o c a l p o l i c e , a lo e
............................................................
.1
*
8 V/
S e c r e t S e r v ic e A gents o f th e U n ite d S t a t e s T re a s u r y have .d isc o v e re d
a new w rin k le i n th e a g e - o ld c o u n t e r f e i t i n g r a c k e ty and th u s fo u n d an oppor
t u n i t y to s t r i k e a blow i n b e h a l f o f th e stam p c o lie c tio ii^ ^ " h o b b y o f k id s and
k in g s ” .
C h ie f F ran k J # W ilso n r e p o r te d t o Elm er L . I r e y , C h ie f C o o rd in a to r o f
T re a s u ry E n fo rcem en t A g e n c ie s , t h a t th e D iv is io n d u r in g th e 1943 f i s c a l y e a r
sm ashed two a u d a c io u s a tte m p ts to d e f r a u d stam p c o l l e c t o r s w h ile a p p ro a c h in g
i t s g o a l o f e x te r m in a tio n o f c u r r e n c y and c o in c o u n t e r f e i t i n g and g e t t i n g
a d e c id e d jump on th e check f o r g e r y r a c k e t .
The S e r v ic e e n c o u n te re d a new e n fo rc e m e n t p ro b le m d u r in g th e y e a r — the
:ruTTwith fth ^ o e e p o r a tio n - c tf th e O ffic e of
c o u n te rfe i
P r ic e A d m i n i s t r a t i ^ t i^ d e U a lumber o f a r r e s ts jf ^ jjjj^ o n e y c o u n t e r f e i t i n g dropped
n e a r e r th e v a n is h in g p o i n t a s a r e s u l t o f th e c u m u la tiv e e f f e c t s o f th e ”Know
Your Money” p ro g ram o f e d u c a tin g th e p u b li c i n d e t e c t i n g bogus b i l l s , w hich
S e c r e t a r y M orgenthau i n s t i t u t e d i n 1 9 3 7 .
crim e th ro u g h ciaw satlonw of p os
Tjhe
me te c h n iq u e o f p re v e n tin g
was u s e d i n one o f th e m ost in ten siv e
cam paigns o f th e s o r t e v e r in a u g u r a te d , a cam paign to e a f e bU” I d fx
tl
.■
u tiiM 'it11U ic ik s - o f d e p e n d e n ts o f men i n the armed j
V
g o in g o u t ea c h m onth th a n e v e r
W ith m
t i t,,0 0 0 ,0 0 0 checks
r v hhii sQ Tt o. nrmyr o f th e N a tio n , a t i d e now r u n n in g a t th e r a t e of
i ia
a y e a r , th e num ber o f a l l ty p e s o f governm ent check c a s e s r e q u i r i n g in v e s tig a
i -n
t i o n in c r e a s e d l e s s th a n t h r e e p e r c e n t , and th e num ber o f a r r e s t s where c n m i n *
p r o s e c u ti o n a p p e a re d j u s t i f i e d a c t u a l l y d e c lin e d fro m th e 1942 f i g u r e s .
W ils o n - b e lie v e s th e > ,d u u .b iu ii.i^ g r o g r a m c o n t r i b u te d g r e a t l y to
o f crim e
<
Chief
TREASURY DEPARTMENT
W ashington
FOR RELEASE, AFTERNOON NEWSPAPERS*
S a tu rd a y , J u ly 31* 1943.
7 -30-43
* 1
*
—
P re s s S e rv ic e
Ho, 37-81
■' '
•
S e c r e t S e rv ic e A gents o f th e U n ite d S ta te s /T r e a s u r y have
d isc o v e re d a new w rin k le in th e a g e -o ld c o u n t e r f e itin g r a c k e t,
and th u s found an o p p o r tu n ity to s t r i k e a blow in b e h a lf o f
th e stamp c o l l e c t i o n ’’hobby o f k id s and k i n g s . ”
C h ie f Frank J . W ilson r e p o r te d to Elmer L. I r e y , C h ie f
C o o rd in a to r o f T re a su ry E nforcem ent A g en cies, t h a t th e D iv i
sio n d u rin g th e 1943 f i s c a l y e a r smashed two au d acio u s a t
tem pts to d e fra u d stamp c o l l e c t o r s w h ile ap p ro ach in g i t s g o al
o f e x te rm in a tio n o f c u rre n c y and c o in c o u n t e r f e itin g and
g e t tin g a d ec id ed jump on th e check fo rg e ry r a c k e t.
The S e rv ic e en c o u n te re d a new en forcem ent problem d u rin g
th e y e a r — th e c o u n t e r f e i t i n g o f g a s o lin e r a t i o n stam ps, and
c o o p e ra tin g w ith th e O ffic e o f P ric e A d m in is tra tio n , made a
number o f a r r e s t s . N in e te e n d e fe n d e n ts in th e s e c a se s d e v e l
oped a t Newark., N. J . , p le a d e d g u i l t y .
Money c o u n t e r f e i t i n g dropped n e a r e r th e v a n ish in g p o in t
as a r e s u l t o f th e cu m u lativ e e f f e c t s o f th e ’’Know Your Money”
program o f e d u c a tin g th e p u b lic in d e te c tin g bogus b i l l s ,
which S e c r e ta r y M orgenthau i n s t i t u t e d in 1937. The same te c h
niq u e o f p r e v e n tin g crim e th ro u g h te a c h in g p o s s ib le v ic tim s
how to sp o t a bad b i l l o r c o in was u sed in one o f th e m ost i n
te n s iv e cam paigns o f th e s o r t e v e r in a u g u ra te d , a campaign to
p re v e n t d ep en d en ts o f men in th e armed s e r v ic e s r e c e iv in g
allow ance o r a llo tm e n t checks from b e in g th e v ic tim s o f th e
check t h i e f and f o r g e r .
W ith more m il lio n s o f governm ent checks go in g o u t each
month th a n e v e r in th e h i s t o r y o f th e N a tio n , a t i d e now
running a t th e r a t e o f 1 9 9 ,0 0 0 ,0 0 0 checks a y e a r, th e number
o f a l l ty p e s o f governm ent check c a se s r e q u ir in g in v e s tig a tio n
in c re a s e d l e s s th an th r e e p e r c e n t, and th e number o f a r r e s t s
where c rim in a l p r o s e c u tio n ap p eared j u s t i f i e d a c t u a l l y d e c lin e d
from th e 1942 f i g u r e s . C h ie f W ilson b e lie v e s th e S e c re t S e rv
ic e Crime P re v e n tio n program c o n tr ib u te d g r e a t l y to cu rb in g
th i s ty p e o f crim e.
2
Two P itts b u r g h d e a le r s in p h i l a t e l i c item s were se n ten c ed
to term s o f a y e a r and a day in p r is o n as a r e s u l t o f t h e i r
n e a t l i t t l e scheme to d e fra u d stamp c o l l e c t o r s .
The d e a l e r s , C y r il J . Huber and Adam K. B e r t, p le ad ed
g u i l t y to in v e n tin g a s e r i e s o f stam ps o f t h e i r own, b e a rin g
th e w ording "U, S . P o s ta g e -F re e -F o r th e Armed F o rc e s ." I t was
a c o l o r f u l ite m w ith a r e d , w h ite , and b lu e d e s ig n o f th e
American E ag le and a s h i e l d . T here i s no such g enuine stam p.
S e c re t S e rv ic e A gents s e iz e d 300,000 o f th e com pleted stam ps
and found a " fra u d w ith in fra u d " a ls o aimed a t stamp c o l l e c t o r s
Huber and B e rt had p r in te d s e v e r a l th o u san d o f th e stam ps w ith
th e e a g le d e s ig n in v e r te d , to make i t a p p e a r t h a t th e y were
m is p r in ts and th e r e f o r e o f u n u su al p h i l a t e l i c v a lu e .
S ix New York men a re a w a itin g t r i a l in a somewhat s im ila r
c a se . W ith th e c o o p e ra tio n o f P o st O ffic e I n s p e c to r s , th e
T reasu ry o f f i c e r s a r r e s t e d M o rris J , S te r n , Abraham M. K a iis h ,
A lb e rt J . R ab in o w itz, M ichael M, K aren, Henry L ie b lic h and
Mervyn B. Haycock on ch arg es o f making bogus " o v e r p r in ts " and
p e r f o r a tio n s on gen u in e p o sta g e and i n t e r n a l revenue stamps so
as to make them a p p e a r r a r i t i e s ,
One $>60 r o l l o f stam ps, w hich a re d i s t r i b u t e d u n p e rfo ra te d
was g iv e n bogus p e r f o r a tio n s so as to make them ap p e ar " a c c i- *
d e n ts ." New York p h i l a t e l i s t s who a s s i s t e d a g e n ts in d ev e lo p
ing th e case s a id t h a t th e stam ps, had th e y been g e n u in e ly
p e r f o r a te d , would have been v alu ed a t $ 6,000 in c o l l e c t o r s »
c irc le s .
S e c r e t S e rv ic e A gents a s s i s t e d Cuban a u t h o r i t i e s in smash
ing a Havana gang engaged in c o u n t e r f e itin g $50 n o te s o f th e
F ed eral Reserve Bank o f New Y ork. The p la n t was s e iz e d , and
seven p e rso n s a r e a w a itin g t r i a l in th e Cuban c o u r ts .
A gents o f th e S e r v ic e , w ith th e a s s is ta n c e o f lo c a l p o lic e ,
also c a p tu re d a c o u n t e r f e i t i n g p la n t in P h ila d e lp h ia , and
a r r e s te d George W. P la c e , who was a l l s e t to m an u factu re bogus
$10 n o te s . P la c e was i d e n t i f i e d w ith 51 o f fe n s e s o f b re a k in g
and e n te r in g , in c lu d in g s a fe r o b b e r ie s , and was se n ten c ed in
P en n sy lv an ia c o u r ts to from 20 to 40 y e a rs in p r is o n . The Fed
e r a l in d ic tm e n t on th e c o u n t e r f e itin g charg e w ill be w a itin g ,
when and i f he g e ts o u t o f p r is o n .
S e c r e t S e rv ic e o f f i c e r s , in c o o p e ra tio n w ith th e A g ri
c u ltu r a l A djustm ent A d m in is tra tio n , o b ta in e d ev id en ce t h a t r e
s u lte d in th e a r r e s t o f s ix p e rso n s In Chickasaw County, M is s is s ip p i, in a ca se in v o lv in g $400,000 i n governm ent fu n d s . lames C
3
Si
B a r r e t t , county farm a g e n t, and f iv e a s s o c ia te s were c o n v ic te d
o f s u b m ittin g numerous f a l s e claim s f o r b e n e f i t paym ents, o f
fo rg in g ch eck s, and c o l l e c t i n g paym ents i l l e g a l l y . S en ten ces
ranged from te n months to f o u r y e a r s . I t i s ex p ected t h a t c i v i l
s u i t s w ill re c o v e r a l l o f th e l o s s e s .
S c a rc e ly had Congress e n a c te d l e g i s l a t i o n p ro v id in g depend
ency and allo w an ce b e n e f i t s to th e fa m il4 e s o f p e rso n n e l o f th e
armed s e r v ic e s when th e S e c r e t S e rv ic e began to i n t e n s i f y i t s
"Know Your E n d o rse rs" campaign to make th e th e ft- and f o rg e ry o f
th e se and o th e r governm ent checks dangerous and u n p r o f i t a b l e .
The S e rv ic e showered r e c i p i e n t s w ith w arnings o f th e n e c e s
s i t y o f p r o te c tin g th em selv es a g a in s t lo s s o f th e checks by
t h e f t . At th e same tim e, a n atio n w id e cam paign, in w hich s t a t e
and c i t y p o lic .e ex ten d ed e f f i c i e n t c o o p e ra tio n , was d ir e c te d to
m e rc h a n ts, banks and o th e r h a n d le rs u rg in g them to r e q u ir e
p ro p e r i d e n t i f i c a t i o n b e fo re ca sh in g any c h e ck s.
The War and Navy D epartm ents c o o p e ra te d by m a ilin g n o tic e s
w ith th e ch eck s, showing how lo s s o f th e money m ight be p r e
v en ted . Banks, s u r e ty com panies and o th e r p r i v a t e firm s p r in te d
s e v e ra l hundred th o u san d "Know Your E n d o rser" p la c a r d s w hich
were d i s t r i b u t e d among r e t a i l e r s . W arning n o tic e s have been
p r in te d on governm ent ch e ck s, and many s l a t e , c o u n ty , and m unic
ip a l governm ents and banks have fo llo w ed t h i s le a d by p r i n t i n g
"Know Your E n d o rse r - - R equire I d e n t i f i c a t i o n " w arnings on t h e i r
o f f i c i a l ch eck s.
As a p a r t o f i t s Crime P re v e n tio n program, th e S e c re t S erv
ic e assem bled an e x te n s iv e c o l l e c t i o n o f g enuine and c o u n t e r f e i t
money, in c lu d in g specim ens o f "war" c u rre -n c ie s, in v a s io n money,
Japanese c o u n t e r f e i t s and Jap an ese war b en d s. In c o o p e ra tio n
w ith th e T re a s u ry ’ s War S avings O rg a n iz a tio n and Bureau o f
E ngraving and P r i n t i n g , U n ited S ta te s War S avings .Stamps were
p r in te d a t th e s e e x h i b i t s , and ^500,000 in War Bonds and Stamps
were s o ld to v i s i t o r s . Shown f i r s t in R o c k e f e lle r C e n te r, New
York, and l a t e r in D e t r o i t , C le v e la n d , Omaha, and. S t.. L o u is f
th is d is p la y h as been seen by 150,000 p e rs o n s .
S e c r e t S e rv ic e A gents were fa c e d w ith many new problem s in
m eeting t h e i r r e s p o n s i b i l i t y o f p r o te c tin g th e P re s id e n t on h is
unpreced en ted jo u rn e y to C asab lan ca in Ja n u ary .. Through c a r e f u l
and th o ro u g h advance a rra n g e m e n ts, and u n u su a l p r o te c tiv e p ro
cedures d u rin g th e t r i p , movements were ex e cu te d a c c o rd in g to
plan and were k e p t a c lo s e ly guarded s e c r e t u n t i l th e news was
re le a s e d o f f i c i a l l y . G reat ca re a l s o was ta k e n to in s u r e th e
4
P r e s id e n t’ s s e c u r i t y d u rin g h i s c o n fe re n c e in A p ril w ith P r e s i
dent A v ila Camacho o f M exico, a t M o n terrey , and on Mr. R o o s e v e lt’ s
in s p e c tio n to u r s o f war p l a n t s and army camps.
S t a t i s t i c s f o r th e f i s c a l y e a r show to what d i r e s t r a i t s th e
b u s in e s s o f c o u n t e r f e itin g h as come. Only 159 p e rso n s were a r
r e s te d f o r o f fe n s e s in v o lv in g bogus b i l l s and c o in s , compared to
517 in 1942 and th e lo s s e s by v ic tim s o f c o u n t e r f e i t money p a s s e r s
were reduced ab o u t 50 p e r c e n t. A r r e s ts f o r check f o r g e r ie s de
c lin e d from 1171 in 1942 to 1004 in th e 1943 p e r io d . Of o ffe n d e rs
b ro u g h t to t r i a l f o r c o u n t e r f e i t i n g , f o r g e r ie s and o th e r v i o l a
t i o n s , 98 p e r c e n t were c o n v ic te d .
-oOo-
- 5Acting on behalf o f the Department of State, Customs o ffic e r s
maintained unusual scrutiny o f tra n sit papers of persons entering
and leaving the country*
In addition, censorship of a l l communica
tions outside the regular mails was a Customs function*
With the
Navy Department and the Coast Guard, Customs shared the protection
of p ie rs, docks and other waterfront f a c i l i t i e s .
- 4 C o ll in s S t e r l i n g S m ith o f D e t r o i t , w hose a r r e s t i n New f o r k
l a t e i n 1942 s e t o f f t h e l a t e s t s e r i e s o f i n v e s t i g a t i o n s i n t o b o rd e r
t r a f f i c i n '‘h ig h - g r a d e d g o ld " , was s e n te n c e d to a y e a r i n j a i l and
f i n e d $ 1 0 ,0 0 0 .
More th a n 300 o u n ces o f g o ld w ere s e iz e d i n th e c a se
in v o lv in g S m ith and s e v e r a l a s s o c i a t e s .
S e v e re p r i s o n te rm s w ere m e ted o u t i n F e d e r a l jg p n rt i n S e a t t l e
t o two J a p a n e s e c o n v ic te d o f c o n s p ir in g t o - v io la te e x p o r t c o n t r o l
r e g u l a t i o n s i n an a tte m p t to s h ip s t e e l o i l s to r a g e ta n k s t o Ja p a n .
The o f f e n s e o c c u r r e d p r i o r to th e a t t a c k on P e a r l H a rb o r, b u t a t
a tim e when e x p o r t a t i o n o f c r i t i c a l m a t e r i a l s to Ja p a n was ban n ed .
The c a s e was d e v e lo p e d j o i n t l y b y Custom s and th e F o r e ig n Funds
C o n tr o l, and i n c o o p e r a tio n w ith th e B oard o f Econom ic W a rfa re .
C h a r le s T . T ak a h a sh i and Edward Y. Ozuma w ere s e n te n c e d t o t h r e e y e a rs
im p riso n m en t i n i t i a l l y , b u t s u b s e q u e n tly th e te rm s w ere e x te n d e d to
5 y e a r s a f t e r th e c o u r t was in fo rm e d o f a c t i v i t i e s o f th e p a i r i n an
enemy in te r n m e n t camp.
Custom s made num erous s e i z u r e s o f m e rc h a n d ise a tte m p te d to be
e x p o r te d i n v i o l a t i o n o f O f f ic e o f E x p o rts r e g u l a t i o n s , b u t few er o f
th e s e in v o lv e d c r i t i c a l w ar m a t e r i a l s th a n i n th e 1942 f i s c a l y e a r .
S e iz u r e s o f a l l ty p e s o f sm uggled co m m o d ities t o t a l l e d 1 0 ,8 0 0,
an i n c r e a s e o v e r th e p r e v io u s y e a r .
T h ere w ere 3 ,9 2 0 s e iz u r e s o f
liq u o r.
S e a rc h e s o f v e s s e l s , v e h i c l e s , c a r g o , baggage and p e rso n s en terin g
and le a v in g th e U n ite d S t a t e s w ere o f n e c e s s i t y much more s t r i c t than
d u r in g p eac e tim e s , and t h i s and o th e r w artim e f u n c ti o n s w ere welded into
n o rm al o p e r a t io n s o f th e Customs S e r v ic e and acc o m p lish e d e f f e c t i v e l y
d e s p i t e a s l i g h t l y d e c r e a s e d p e r s o n n e l.
- 3 -
on the Proclaimed L ist of Blocked Na tio n a ls, thus shutting o ff finan cial
dealings w ith them, and there has been a marked decline in the volume
of such requests for funds reaching th is country.
The F ield In vestigative S ta ff of the Foreign Funds Control,
under Theodore H. B a ll, Compliance Chief, made some 1,000 investiga
tion s during the f is c a l year.
As a r e su lt, assets of enemy nationals
of substantial value in th is country were brought under control through
the blocking of accounts.
Numerous violation s of the "freezing**
regulations o f the Trading with the Enemy Act rela tin g to enemy-owned
property were discovered and administrative sanctior^a^or criminal
prosecutions in stitu te d .
A typ ical case involved a company incorporated in the United
S ta tes, which reported that i t s ownership was vested in a Swiss Corpora
tio n .
Investigation disclosed that there was no such Swiss Corporation,
and that actu ally the United States company was b en eficia lly owned by
a German company.
In another case an attorney practicing in the United States,
representing c lie n ts in Germany, attempted to conceal the true owner
ship of se cu r itie s that had been transferred to him as custodian.
Customs o ffic e r s , in cooperation with the United States Secret
Service and Camdian au th orities continued to wage war on smugglers
of sto le n gold.
The most spectacular incident in a series of such cases
saw an undercover Customs o ffic e r obtain the e sse n tia l evidence by
posing as a buyer for the contraband.
Eighty three ounces of gold were
seized at the tunnel entrance between D etroit and Windsor, Ontario, and
three persons were arrested.
- 2 -
Treasury o ffic e r s said the men were engaged in purchasing,
at fractions o f i t s value, United States currency from "Black
Market" sources.
The seamen were alleged to have conspired to
smuggle the currency into the United States when they touched
port, exchange i t for negotiable paper, which was to be returned
to South America where i t would command the highest rate of
exchange.
Treasury o ffic e r s also attacked a "ransom" racket victim izing
European war refugees or th eir friends in th is country*
They
learned that large sums o f money were being demanded of persons
in th is country for the purchase o f e x it p em its for friends and
r ela tiv es in enemy occupied countries*
Frequently these requests
were for tran sfer of funds to agents in neutral countries, often
unknown to the persons s o lic ite d .
I t waoi t hought that such re
quests for funds, i f not actu ally a "shakedown" racket, were a
means used by enemy agents to obtain foreign exchange credits in
the neutral countries*
A three way agreement between the Netherlands Government, Great
B ritain, and the United States was put into e ffe c t which sought to
ban the transfer of money for th is purpose*
The Foreign Funds
*
Control, working w ith the State Department, was designated as theo,
enforcement authority for th is Government.
Investigations by the
Treasury agency id en tified seven individuals in Switzerland as
engaged in th is organized ransom tra ffic *
These persons were put
<X2e,
J >
4
/__'
4 ^ .
/ 1| |
g*
T r e a s u r y o f f i c e r s , m a in ta in in g an i n t e n s i v e v i g i l o v e r c h a n n e ls
o f t r a d e and p o r t s and b o r d e r s i n th e w ar a g a i n s t th e A x is on t h e
econom ic f r o n t , - h av e d e a l t a s u b s t a n t i a l blow a g a i n s t a b u d d in g
“ b la c k m a rk e t” i n U n ite d S t a t e s c u r r e n c y .
D u rin g th e f i s c a l y e a r j u s t c lo s e d , th e B ureau o f Customs and
th e F o r e ig n Funds C o n tr o l D iv is io n , made num erous i n v e s t i g a t i o n s
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o f c a s e s in v o lv in g a tte m p ts t o sm uggle i n t o t h i s c o u n try c u r r e n c y
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