The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Ú .,% ‘
'fit
/
L I B R A R Y
P WM 5030
JUN 1 4 1972
TREASURY DEPARTMENT
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, December 21, 1943 >
Prass Service
^6 - Ö
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated December 23» 1943»
e
and to mature March 23» 1944, which were offered on December 17, were opened at the
Federal Reserve Banks on December 20,
The details of this issue are as follows:
Total applied for * $1,791,197,000
Total accepted
- 1,005,249,000
Average price
(Includes $60,601,000 entered on a fixed-price
basis at 99.905 and accepted in full)
- 99.905^Equivalent rate of discount approx. 0.375$* per annum
Range of accepted competitive bids:
Nigh
Low
- 99*909 Equivalent rate of discount approx. 0.360$ per annum
- 99.905
*
*
*
*
*
0.376$ *
"
(50 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
49 ,014,000
1,140,091,000
37,231,000
35 ,122,000
25,013,000
14,510,000
269,975,000
31,943,000
6,345,000
31,393,000
28,850,000
121.710.000
#
#1,791,197,000
#1,005,249,000
TOTAL
J
31,464,000
588,508,000
22,231,000
26,472,000
21,358,000
11,660,000
14 9 ,475,000
18,988,000
6,320,000
30,563,000
23,250,000
74,960,000
TREASURY DEPARTMENT
Washington
P O R RELEASE, MORNING- N E W S P A P E R S ,
Tuesday, D e c e m b e r 21, 1943.
12-20-43
7 ^
Press Service
No. 40- 0
T h e S e c r e t a r y of t h e T r e a s u r y a n n o u n c e d last
t h e tenders f o r $ 1 , 0 0 0 , 0 0 0 , 0 0 0 ,
or t hereabouts,
evening tha t
of 9 1 - d a y T r e a s
u r y bills to be dated D e c e m b e r 23/ 1 9 4 3 j a n d to m a t u r e M a r c h 23,
19 4 4 , w h i c h w e r e o f f e r e d oh D e c e m b e r 17, w e r e o p e n e d at the F e d
eral R e s e r v e Banks
T h e details
on D e c e m b e r 20,
of this
issue a r e as follows:
T o tal a p p l i e d f o r - $ 1 , 7 9 1 , 1 9 7 , 0 0 0
Total accepted
1 , 0 0 5 , 2 4 9 , 0 0 0 (includes $ 6 0 , 6 Q 1 , 0 00
e n t e r e d on a f i x e d - p r i c e basis at 99.905 and a c c e p t e d in
full)
Average price
- 9 9 3 ^ 5 / E q u i v a l e n t r a t e of d i s count approx,
0,375$ par annum
R a n g e of a c c e p t e d c o m p e t i t i v e bids:
High
9 9 *909 E q u i v a l e n t r a t e of discount approx.
0 .360$ p e r a n n u m
Low
99,905 E q u i v a l e n t r a t e of discount approx.
0 .376 $ p e r a n n u m
(50 p e r c e n t of t he a m o u n t bid for at t h e l o w p r i c e was accepted)
Federal Reserve
D i s t r i c t ________
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Dallas
San Fra n c i s c o
TOTAL
Total
A p p l i e d for
$..
49,014,000
1 , 1 4 0 , 091,000
,3 7 ,231,000
35, 122,000
25 .013.000
Totals,
Accepted
31.464.000
588,508,000
22 .231.000
26.472.000
21.358.000
14.510.000
269.975.000
31.943.000
6,3 4 5 , 0 0 0
31.393.000
28.850.000
121.710.000
11.660.000
149,475,000
18,988,000
6 , 320,000
$1,791,197,000
$1,005,249,000
OOO-
,,
3 0 563,000
23 250,000
74 , 9 6 0 , 0 0 0
S T A T E M E N T O F SEC RETA Hf M O R G E N T H à U
D e c e m b e r 20,
1943
The revenue bill as it n o w stands a f t e r giving effect to
the t e n t a t i v e - d e c i s i o n s o f the S e nate Finance C o m m i t t e e ap p e a r s
to p r o m i s e a b o u t $2,1 b i l l i o n s of a d d i t i o n a l r e v enue on a n
a n n u a l basis u n d e r w a r co nditions#
But this c a l c u l a t i o n leav e s out of c o n s i d e r a t i o n the d e
cisi o n to freeze social security p a y r o l l taxes a n d the changes
the H o u s e and pena t e h a v e p r o p o s e d to m a k e in the l a w g o v e r n i n g
contract re - n e g o t i a t i o n .
The r e v e n u e y i e l d o f the bill in its p r e s e n t f o r m is
n a t u r a l l y e x t r e m e l y d i s a p p o i n t i n g to the T r e a s u r y D e p a r t m e n t .
W e h a d h o p e d b o t h that the u n f a i r n e s s to f u t u r e taxpayers,
i n c l u d i n g the r e t u r n i n g soldiers, of p a s s i n g on to t h e m w a r
costs that we are able to m e e t n o w a n d the n e e d f o r p r o t e c t i n g
o u r s e l v e s ag a i n s t i n f l a t i o n w o u l d have m a d e a n appe a l to the
m e m b e r s o f the committees.
Other; p r o v i s i o n s
equally unfortunate.
of the b i l l as
it n o w stands
s e e m to me
I
regret that the S e n a t e committee has v o t e d to f r e e z e
p a y r o l l taxes a t the p r e s e n t rate o f 1 pe r cent.
This will mean
r e d u c i n g social s e c u r i t y collections b y $ 1 «4 b i l l i o n s in the
n e x t year«
T h e effect will b e to increase the a m o u n t s the
g o v e r n m e n t w i l l hav e to r a i s e in f u t u r e y e a r s f o r that purpose.
The increase o u ght to go into effe c t now w h e n wages are h i g h
a n d e m p l o y m e n t conditions good, w h e n b o t h emp l o y e r s a n d e m
p l o y e e s can a f f o r d to p u t a s i d e m o n e y for s e c u r i t y purposes.
The changes in t he re*-negotiation p r o v i s i o n s w h i c h have
b e e n p r o p o s e d w i l l m a k e r e - n e g o t i a t i o n so co m p l e x as to be
p r a c t i c a l l y u n w o r k a b l e a n d a l s o will c e r t a i n l y cost the g p v e r n m e n t l a rge amounts.
It is i m p o ssible to m a k e a n y exact
c a l c u l a t i o n of t h eir m o n e y c o s t ? b ut we know that it w ill be
s u b s t a n t i a l a n d in m a n y cases wil l involve r e f u n d s of a d m i t t e d l y
e x c e s s i v e p r o f i t s a l r e a d y p a i d into the T r e a s u r y b y a g r e e m e n t .
T h i s is h o t their w o r s t feature, however«
T h e i r w o r s t feature
is that t h e y o p e n the w a y to truly e x t o r t i o n a t e p r o f i t s > I
p r e d i c t that if t h e y are e n a c t e d into law t h e y w ill come b a c k
to plague not o n l y the C o n g r e s s b ut the w a r goods m a n u f a c t u r e r s
w h o get t e m p o r a r y g a i n f r o m them.
T h e y h o l d the s eed o f a n a t i o n a l scandal.
I r e f e r to
p r o v i s i o n s s u c h as those e l i m i n a t i n g f r o m r e - n e g o t i a t i o n the
m a k e r s of s o - c a l l e d s t a n d a r d a r t i c l e s a n d the r e t r o a c t i v e
e x e m p t i o n of s u b - c o n t r a c t o r s whose g o o d s do not e n t e r into
the final product.
O t h e r p r o v i s i o n s of the bill w o u l d leave
final sett l e m e n t s u n d e r r e n e g o t i a t i o n o p e n f o r years to come.
oOo
>/> •
4°
--
FOR IMMEDIATE RELEASE,
The Bureau of Customs announced today preliminary figure» shoving the
quantities of coffee authorised for entry for consumption under the quotas
for the 12 months commencing October 1» 1943* provided for in the Inter*
American Coffee Agreement* proclaimed by the President on April 1 5 * 1941* as
followsS
Country of Production
f
e
:
0
0
*
:
Authorized for entry
:
Quota Quantity
for consuamtion------:
(Pounds) 2j
As
of
(Date) l__L & m f o J U
X
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
11 Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,353,183,480
458,336,340
29,100,720
11,640,268
17*460»433
21,826,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
26»373,202
3,637,390
61,111#512
Deo. 11, 1943
0
H
«
S
ft
ft
a
»
0
«
0
N
II
214,817,612
108,219,939
1,793,406
2,197,675
2,680,802
9,767,634
939,886
3*023,388
2,462,924
819,763
10,451,109
501,901
342,523
7,529,830
Non-signatory Countries:
51,653,778
2j
1,991,271
Qaotas as established by action of the Inter-American Coffee Board on
March 11» 1943*
— 0O 0-
TREASURY DEPARTMENT
Washingt on
Press Service
No. 40-1
FOR IMMEDIATE RELEASE,
Wednesday. December 32, 1943.
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas
for the 13 months commencing October 1, 1943» provided for in the Inter.American Coffee Agreement, proclaimed hy the president on April 15, 1941, as
follows;
Country of Production
?
J
Quota Quantity
(Pounds) 1/
*
!
Authorized for entry
:
for consumption
! As of (Date)
i (Pounds)
Signatory Countries!
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,353,183,480
458,336,340
29,100,720
11,640,288
17,460,432
21.825,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
28,373,202
3,637,590
61,111;512
Dec. 11, 1943
It
«
»t
tl
11
11
II
II
If
It
«
H
It
Non-signatory Countries!
51,653;778
1J
11
214,817,612
108,219,959
1,795,406
2,197,675
2,680,802
9,767,634
939,886
5,025.388
3,462,924
819,763
10,451,109
501,901
342,525
7,529,830
1,991,271
Quotas as established by action of the Inter-American Coffee Board on
March 11, 1943.
— oOo-
for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemntion at maturity during the taxable
year for which the return- is made, as ordinary gain or loss.
Treasury Department Circular No. 41$ > as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and nrice 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 from any 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 Bank
in cash or other immediately available funds on
December 30, 1943_____.*
is*
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disoosition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by a n y State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and.
such bills are excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance comoanies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, December 24, 1943______>
'
HE
The Secretary of the Treasury, by this public notice, invites tenders
for $1,000,000.000 , or thereabouts* of
91 -day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided.
The bills of this series will be dated
mature
March 3 0 , 1944
j g --------interest.
December 30, 1943
...» and will
» when the face amount will be payable without
They will be issued in bearer form only, and in denominations of $1,000,
.$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p. m., Eastern War time,
Monday, December 27, 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.
may not be used.
Fractions
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 from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 2 percent rf the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
- J L
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Friday, D e c e m b e r 24, 1945,_______
TREASURY" D E P A R T M E N T
Washington
T h e - S e c r e t a r y of the Tr e a s u r y ,
invites
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 ,
T r e a s u r y bills,
to b e
b y this p u b l i c notice,
or t h e r e a b o u t s ,
of 9 1 - d a y
issu e d on a d i s c o u n t b a sis u n d e r c o m
p e t i t i v e a n d 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 vided.
The
b i l l s of this series will b e d a ted D e c e m b e r 30, 1943, a n d
will m a t u r e M a r c h 30,
1944,
able w i t h o u t ^ i n t e r e s t .
only,
w h e n the face a m o u n t will be p a y
T h e y w i l l b e i s s u e d in b e a r e r f o r m
a n d in d e n o m i n a t i o n s of $ 1 , 000, $5,000,
$100,000,
$500,000, a nd $1,000,000
$10,000,
(ma t u r i t y value).
T e n d e r s w ill be received, at Federal R e s e r v e B a n k s a n d
B r a n c h e s up to the c l o s i n g hour, two o 1 clock p. m.,' E a s t e r n
W a r time, Monday, D e c e m b e r 27, 1943.
Te n d e r s w i l l n o t be
r e c e i v e d a t the T r e a s u r y D e p a r t m e n t , W a s h i n g t o n .
Each ten
d er m u s t b e •for an eve n m u l t i p l e o f $1,000, a n d the price
o f f e r e d m u s t b e e x p r e s s e d on the b a s i s of 100, w i t h n o t m o r e
than three decimals, e. g.-, 99,925#
Fractions m a y n o t be
used.
It is u r g e d that tenders be m a d e on the p r i n t e d forms
a nd f o r w a r d e d in the special e n v e lopes w h i c h w i l l be s u p p l i e d
b y Federal Reserve Banks or B r a n c h e s on a p p l i c a t i o n t h e r efor*
T e n ders will be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r
a t e d b a nks a n d t r u s t c o m p anies a n d f r o m r e s p o n s i b l e a n d r e c
o g n i z e d d e a l e r s in i n v e s t m e n t securities.
Tenders from
othe r s m u s t be a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the
face a m o u n t of T r e a s u r y bills a p p l i e d for, u n l e s s the tenders
are a c c o m p a n i e d b y a n express g u a r a n t y of p a y m e n t b y a n i n c o r
p o r a t e d b a n k or .trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, te n d e r s will be
o p e n e d at the Federal Re s e r v e Banks a n d B r a n c h e s , f o l l o w i n g
w h i c h p u blic a n n o u n c e m e n t will be m a d e b y the S e c r e t a r y of
the T r e a s u r y of the a m o u n t a n d p r ice range of a c c e p t e d bids,
T h o s e s u b m i t t i n g tenders w i l l be a d v i s e d of the a c c e p t a n c e
or r e j e c t i o n thereof.
The S e c r e t a r y of the T r e a s u r y e x p r e s s
ly r e s e r v e s the r i g h t to a c c e p t or r e ject a n y or all tenders,
40-2
(Over)
2
in w h ole or in part, and. his a c t i o n in a n y such re s p e c t shall
be final*
S u b j e c t to these r e s e r vations, tenders for
$ 1 0 Q , 0 0 0 or,,ie¡|$ f r o m a n y ope. b i d d e r at .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 *bé A c c e p t e d in full*
P a y m e n t oí aC4
cepted tenders at..the prices o f f e r e d m u s t be m a d e or comp l e t e d ’a t t he"federal Reserve B a h k 'in cash or o t h e r i m m e
d i a t e l y available, funds on D e c e m b e r 30, 1943»
•
The income d e r i v e d f r o m T r e a s u r y b i l l s > w h e t h e r i n t e r
est or gai n f r o m the* sale dr O t her d i s p o s i t i o n of the bills*
shall n o t h a v e .any .exemption, as such,, .and ,loss from, the
s a l e "or 'o t her d i s p o s i t i o n of T r e a s u r y b i l l s Shall not have
a n y special treatment, as s u c h , - u n d e r Federal tax Act s n p w
or h e r e a f t e r enacted.
The b i lls shall b e ' s u b j e c t to estate,
i nheritance, gift, or o t h e r , e x c i s e taxes,..whether.Federal or
S t a t e , ' b u t shall be exempt f r o m a l l " t a x a t i o n n o w ' o r ‘h e r e
a f t e r i m p o s e d on the p r i n c i p a l or in t e r e s t thereof.by. a n y
State, dr a ny o f ‘the p o s s e s s i o n s of the U n i t e d 'S t a t e s , or b y
a n y local t a xing a u t h o r i t y ,. For p u r p p s e a (vOj^tai X a ^ Q n - 0 t o
a m o u n t vof d i s c o u n t at which''Treasury b i l l s ' a r e o r i g i n a l l y
sold b y the U n i t e d States shall be c o n s i d e r e d ,to be interest.
U n d e r S e c t i o n s .42 a n d .117 (a) (1) of the Internal Revenue
Code, sts a m e n d e d b y S e c t i o n 115. of the Revenue Act of 19.41,
the a m o u n t of d i s c o u n t . a t ‘w h i c h b i l l s issued héréunder. are
sold shall n o t be c o n s i d e r e d to accr u e until .such bills shall
be ;sold, r e d e e m e d dr o t h e r w i s e d i s p o s e d of, a n d such b i lls
are e x c l u d e d f r o m c o n s i d e r a t i o n as capital a s s e t s . ...Accord
ingly, the owner, of T r e a s u r y b i lls "(other, than life i n s u r
ance companies) i s s u e d h e r e u n d e r n e e d include in his income
'4ax re turn .'only the d i f f e r e n c e b e t w e e n the .price paid...for
s u c h b i l l s , w h e t h e r on o r i g i n a l issue or on s u b s e q u e n t p u r
chas e , a n d the a m o u n t a c t u a l l y r e c e i v e d either u p o n sale or
r e d e m p t i o n at m a t u r i t y duri n g the taxable .year for w h i c h the
r e t u r n is 'made, as o r d i n a r y g a i n .or loss.
1
‘ Tre'd'Sury D e p a r t m e n t C i r c u l a r No. 418, as
tills notices, p r é s q r i b e the terms of the T r e a s u r y
g o v e r n the' c o n d i t i o n s of t h e i r issu e .
C o pies of
m a y be o b t a i n e d from a n y Federal Resérve B a n k or
; :
*■
‘
-oOo- .
amended, a nd
bills^and
the ci r c u l a r
Branch,
TR&ASUKI
Washington
FOR
.
Pres* Service
^rO ^ 1
the American stake in the six Axle countries stands at
$1,070,398,668 in the latest tabulation of the Treasury Department»*
census of /uBerican-owned property abroad* This amount, though certain
to increase greatly as further reports are totaled, already far exceeds
the estimated $S^,€XX>^CKX> value of all known Axis assets in this conn**
try,
4»0'/
Total investment in all foreign countries revealed by the tabulation
is 19,210,510,816, with a market or estimated value of $8,909,922,915*
These figures are incomplete since all of the reports filed have not yet
been, reviewed* In addition, extensions have been granted to a number of
corporations and other persons because of the complexity of their prop
erty interests* The final tabulations are expected to increase the totals
ty several billion dollars*
The Treasury pointed out that the census should not be regarded as
closed merely because the specified date for filing reports has passed*
Any person holding foreign securities or other foreign property who has
not complied with the reporting requirements should immediately send his
report, with a brief statement explaining the delay, to the nearest
Federal Reserve Bank* The Department is interested in the early receipt
of the information called for on the forms rather than the application of
penalties* however, e^ g H ^ ^ a ^ j i y g ^
invite penalties.
In the 121 countries mod other areas covered by the reports, values /
range from four dollars in Transjordan to $3,112,184,625 in Canada, which
represents 34 per cent of the total. Other major countries are Germany,
in which the American stake is listed at $769,912,474, or 8*3 per cent,
and the United Kingdom, with $622,892,213, or 6.7 per cent. The total
for the 18 countries in which the amount reported exceeds one hundred
Million dollars is about seven and three quarters billion* or approximateXv
84 per cent.
American investments reported in Latin America are heavy. They
reach $2,494,008,000 in the present figures, which are certain to be in
creased. The amount in Ouba, $ 6 1 4 , 4 8 6 , 6 % nearly doubles that in the
next countiy, Brasil, where the figure W $337,242,028. The investment
in the Argentine is also substantial, being 1310,596,391, whereas the
amount reported so far in some South American countries, such as Bolivia*
with #32,429,539, is relatively aaall.
**000’*
TREASURY DEPARTMENT
Washington
• F OR R E L E A S E , M O R N I N G N E W S P A P E R S ,
Monday, D e c e m b e r 27, 1945.
N
Press Se r v i c e
No, 4 0 - 3
T h e A m e r i c a n stake in the six A x i s cou n t r i e s stands
at $ 1 , 0 7 0 , 5 9 8 , 6 6 8 in the l a t e s t t a b u l a t i o n of tht T r e a s u r y
D e p a r t m e n t s census o f A m e r i c a n - o w n e d p r o p e r t y abroad*
This amount, t h o u g h c e r t a i n to increase g r e a t l y as f u r t h e r
r e p o r t s are totaled, a l r e a d y f ar e x c eeds the e s t i m a t e d
$ 4 5 0 , 0 0 0 , 0 0 0 value of all k n o w n A x i s a s s e t s in this country,
T o tal i n v e s t m e n t in all f o r e i g n c o u n t r i e s r e v e a l e d b y
the t a b u l a t i o n is $ 9 , 2 1 0 , 5 1 0 , 8 1 6 , w i t h a m a r k e t or e s t i m a t e d
value of $ 8 , 9 0 9 , 9 2 2 , 9 1 5 *
T h e s e f i g ures are i n c o m p l e t e since
all of the r e p o r t s f i l e d hav e n ot y e t b e e n r e v iewed*
In
add i t i o n , e x t e n s i o n s hav e b e e n g r a n t e d to a n u m b e r of c o r
p o r a t i o n s a n d o t her p e r s o n s b e c a u s e of the c o m p l e x i t y of
their p r o p e r t y interests.
The final t a b u l a t i o n s a r e e x
p e c t e d to in c r e a s e the totals b y several b i l l i o n dollars.
The T r e a s u r y p o i n t e d out that the c e nsus should n ot be
r e g a r d e d as c l o s e d m e r e l y b e c a u s e the s p e c i f i e d date for
f i l i n g r e p orts has pass ed.
Any person holding foreign
s e c u r i t i e s or o t h e r f o r e i g n p r o p e r t y who h*s n o t c o m p l i e d
w i t h the r e p o r t i n g r e q u i r e m e n t s s h o u l d i m m e d i a t e l y send his
report, w i t h a b r i e f s t a t ement e x p l a i n i n g the delay, to the .
n e a r e s t Federal R e s e r v e Bank.
T h e D e p a r t m e n t is i n t e r e s t e d
in the e a r l y r e c e i p t of the i n f o r m a t i o n c a l l e d f or on the
forms r a t h e r than the a p p l i c a t i o n of pen a l t i e s .
However,
w i l f u l fa i l u r e to file wil l i n vite pena l t i e s *
In the 1 2 1 c o u n tries a n d o t h e r a r eas c o v e r e d b y the r e
ports, vilufs h o w r e p o r t e d r a n g e f r o m four d o llars in
T r a n s j o r d a n to $ 3 , 1 1 2 , 1 8 4 , 6 2 5 in Canada, w h i c h r e p r e s e n t s
34 p e r c e n t of the total*
O t h e r m a j o r countries a r e Germany,
in w h i c h the A m e r i c a n stake is l i s t e d a t $ 7 6 9 , 9 1 2 , 4 7 4 , or
8 . 3 pe r c e n t , a n d the U n i t e d Kin g d o m , w i t h $ 6 2 2 , 8 9 2 , 2 1 3 , or
6.7 p e r c e n t *
The total for the 18 c o u n t r i e s in w h i c h the
a m o u n t r e p o r t e d exceeds one h u n d r e d m i l l i o n d o l l a r s is a b o u t
s e v e n a n d t h r e e - q u a r t e r s billion, or a p p r o x i m a t e l y 8<i percent.
A m e r i c a n i n v e s t m e n t s r e p o r t e d in L a t i n A m e r i c i are
heavy,
T h e y r e a c h $ 2 , 4 9 4 , 0 0 0 , 0 0 0 in the p r e s e n t figures,
w h i c h ar e ce r t a i n to be increased.
The a m o u n t in Cuba,
$ 6 1 4 , 4 0 6 , 6 5 8 , n e a r l y doubles that in the n e x t country, Brazil,
w h e r e the figure is $ 3 3 7 , 2 4 2 , 0 2 8 r T h e ' i n v e s t m e n t in the
A r g e n t i n e is also s ubstantial, b e i n g $ 3 1 0 , 5 9 6 , 3 9 1 , w h e r e a s
the a m o u n t r e p o r t e d so far in some S o u t h A m e r i c a n countries,
s u c h as Bolivia, w i t h $ 3 2 , 4 2 9 , 5 3 9 , is r e l a t i v e l y small.
oOo-
TO3ASUHT DKPARTOEHT
Washington
1hre88 S e ndee
Ù ***
FOI RELEASE, MORNING NEWSPAPERS,
Tuesday, December 28, 1943»
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated December 30, 1943»
and to mature March 30, 1944» which were offered on December 24, were opened at the
Federal Reserve Banks on December 27«
The details of this issue are as follows:
Total applied for - $1,771,559,000
Total accepted
- 1,010,703,000
Average price
(Includes $41,749,000 entered on a fixed-price
basis at 99.905 and accepted In full)
- 99.905/ Equivalent rate of discount approx. 0315% per annum
Range of accepted competitive bids:
High
- 99.910 Equivalent rate of discount approx. 0.356* per annum
- 99.905
«
«
»
»
0.376* »
"
Um
(52 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
#
TOTAL
66,U S , 000
1,260,663,000
46,550,000
24,595,000
15,479,OCX)
4,435,000
217,230,000
33,145,000
4,360,000
12,887,000
9,920,000
76,130,000
$1,771,559,000
38,419,000
691,165,000
31,982,(XX)
23,827,000
11,399,000
3,659,000
118,242,000
20,425,000
4,216,000
11,639,000
8,768,000
47.042,000
$1,010,783,000
T R E A S U R Y ;D E P A R T MEN T
Washington
;BbrR" R0LEÂSE, MO RATING -NEWSPAPERS,
Tries da y, D e c e m b e r 28, 1943«______
'
Pres s Service
No, 40^4
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e ning that th
tenders f o r .$1,000,000,000, or thereabouts, of 9 1 - d a y T r e a s u r y
b i l l s to be dated D e c e m b e r 50, 1943, and to m a t u r e M a r c h 30, 1944
w h i c h w e r e o f f e r e d on D e c e m b e r 24, were o p e n e d at the Federal
Reserve Banks on D e c e m b e r 27.
The details of this issue are as follows!
Total applied for - ¡Jl,771,559,000
Total accepted
- 1,010,783,000 (includes 1:41,749,000 en
tered on a fixed-price
basis at 99-.905 and ac^
cepted in full)A v e r a g e price
-
Range of a c c e p t e d
c o m p e t i t i v e bids?
High
*
Low
-
(52 p e r c e n t of
99*905 / Equivalent
approx,
rate of di s c o u n t
0.375% per annum
9 9 ,910 E q u i v a l e n t rate o.f di s c o u n t
approx. 0 , 356% p e r a n n u m
9 9 .905 E q u i v a l e n t rate of discount
approx. 0 , 3 7 6 % per a n n u m
the a m o u n t b i d for at the l o w price was accepted)
Federal Reserve
District
Total
Applied
Boston
New York
Philadelphia
Cleveland
Richmond.
Atlanta
C h i cago
St. Louis
Minneapolis
K a nsas Cit y
Dallas
San F r a ncisco
f
TOTAL
for
66,115,000
1,260,663,000
46.550.000
24.595.000
15.479.000
4.485.000
217,230,000
3 3 . 1 45.000
4.360.000
12.887.000
9.920.000
76.130.000
|1,771,559,000
Total
Accepted
$
38,419,000
691.165.000
31.982.000
23.827.000
11.399.000
3.659.000
118.242.000
20-, 4 2 5 ,000
4.216.000
11,6 39,000
8.768.000
47.042.000
$1,010, 783., 000
-
2
-
and radio advertisements and store and window displays«
You have con
tributed the promotional skill and knowledge which are yours precisely
because you are merchants«
You have understood that the war loans are
great merchandising enterprises, and your own organizations have been
splendidly equipped to provide the three important essentials of a great
merchandising campaign:
Sales outlets, personal solicitation and ad
vertising and display promotion.
As a result, we now have between 25,000 and 30,000 retail
Q\itLets for Yfar Bonds*
We have enjoyed in recent War Loans literally
millions of dollars in advertising support sponsored by retailers.
We
have seen our product displayed in store windows with as much considera
tion and ingenuity as if it were the specialty of the house.
And we
have felt the impact of your direct selling.
Governing all of these activities has been a principle which
we believe should be counted a dominant portion of your contribution.
That is your belief in «Good selling«.
You have strictly interpreted
the meaning of our product according to the highest purposes for which
Ü
is intended— to help finance the war, to combat inflation, and to
provide a nest-egg for the future.
You have learned from long selling
experience the futility of exaggerated or misleading sales appeals,
and have been scrupulously accurate in presenting to your customers
the true story of War Bonds.
As we step forward into the next great campaign, it is
reassuring to know that we will again be supported by your people,
your promotion, and your understanding of the fact that we must sell
our quotas of Bonds, exceed them and keep them sold*
In the Fourth War Loan next month, we will face the
unprecedented task of selling $5*5 billion dollars worth of War
Bonds to individuals.
I say wwew advisedly, for the Retail Indus
try of America - and the Retailers* War Campaigns Committee - have
acted in partnership with the Treasury Department in the sale of
Bonds and Stamps since the first Defense Bonds were issued in May
of 1941.
Ever since that time you retailers have played a major
role in the sale of almost $17 billion worth of WEM Bonds, and have
adjusted your sights upward as the increased necessity for this type
of direct financing imposed steeper quotas upon us*
We saw what you could do in the Third War Loan, when
each of your sales people accepted a quota of $200 in WEH Bonds
to be sold during the drive.
More that 800,000 employees have been
cited for meeting or beating that quota*
Now in the Fourth War
Loan we will count upon you to fulfill another great pledge— the
promise that your five million workers will each strive to sell
at least $200 in MEn Bonds.
Should you succeed in that effort, you not only would
carry more than your part of the job, you would again stand secure
in the knowledge that you as merchants and citizens have done all
within your immediate power to insure the orderly financing of the
war, and the eventual attainment of victory.
In the past, you retailers have not been content with mere!
making War Bonds available to people in all walks of life.
You have
also taken it upon yourselves to merchandise those Bonds in newspaper
i
action in Italy. I talked to them and was inspired by
their seriousness and deterain&tion*
American fighting men ~
length and breadth
These millions of
and women too ~~ scattered the
of the globe, want assurance that we
are behind them ■<*« that we on the Home Front are fighting
the war too*
A
,
The success of the Fourth War Loan wi11^give them
this assurance*
You retail people have always taken on a big part of
the job of selling war bonds during past drives*
This
time I understand you are settingia higher goal than
eve
The 'Bmmmggsmd congratulates you and thanks you*
1
T i n .
://\
We are addressing this broadcast to Retail people to the owners and isanagers of retail stores, and to
the hundreds of thousands of clerks who are among the
Treasury*s best salesmen in our War Bond campaigns# We
are asking you who hare dos e * day~by~day contact with
the publicf t o ^ g a i ^ i e l ^ in January, when we launch
the American
the Fourth War Loan Drive,
r/ c / ju£^c>y zr®~£>^ o~v~€>
peoplej^to lend their Government ¿rnrn^rna^im km f^m m m n
with which to finance the war*
Five and one-half billion
of this is to be loaned by individuals — by you and
neighbors.
j&XL of you know why we need ihia money at this
time
Tou know that the leaders of Jiaited Rations have
A
drawn up plans for the all~out
It will be the greatest attack in history, and
it will require tremendous quantities of fighting
equipment — the kind of equipment that your W&r Bond
money buys.
jj^can assure you that when that attack comes, our
troops — our men on the front lines — will give a
mighty good account of themselves.
I saw those men in
n . f f - f ^ M
,
M 'w T ;
J ^ h ^ c ^ r J.L d u * - V<-
* -f . r f t a
(The f o l l o w i n g F o u r t h W a r L o a n m e s s a g e
b y Secretary Morgenthau,
a d d r e s s e d to
the thousands of A m e r i c a * s r e t a i l e r s
a n d t h eir five m i l l i o n employees,
and
b r o a d c a s t b y the N a t i o n a l B r o a d c a s t i n g
Company,
is s c h e d u l e d for d e l i v e r y at
12stlf? P.M., EWT,
D e c e m b e r 29,
at
on W e d n e s d a y ,
1945, a n d is f o r release
that t i m e . /
Appearing also on the program
was Ted R. Gamble, National Director of the
Treasury*s War Finance Division, and Delos Walker,
Chai]
^ ■ O 'r .P
Retailers* War Campaigns Committee.)
TREASURY DEPARTMENT
Washington
(The 'follomng Fourth War Loan message by
Secretary Morgenthau, addressed to the
thousands of America*s retailers and their
five million employees, and broadcast by
the National Broadcasting Company,
is scheduled for delivery at 12r30 P#M,5
-EWT5 .on Wednesday,. December -29« 194-3* and
■is for release at that time. Appearing
also on the program was Ted R* Gamble,
National Director of the Treasury’s War
Finance Division, and Delos Walker, Chairman
of the Retailers1 War Campaigns Committee,)
We are addressing this broadcast to Retail people w» to the owners
and managers of retail ^stores, and to the hundreds of thousands of clerks
Who are among the Treasury’s best salesmen in our War Bond campaigns. We
■are asking you who have close, day-by-day contact with the public, to help
again..in .January, when we launch the. Fourth War Loan Drive# The American
people will be asked to lend their Government $14*000,000,000 with which
to finance the war# Five and one-half billion of this is to be loaned by
individuals — b y 1you and your neighbors.
All of you know why we need this money at this time. You know that
the leaders of the United Nations have drawn up plans for the all-out
attack# It will be the greatest attack in history,: and it will require
tremendous quantities of fighting equipment
the kind of equipment that
your War Bond money buys,
I can assure you that when that attack comes, our troops — our men
on the front lines
will give a mighty good account of themselves,
I saw those men in action in Italy# I talked to them and was inspired by
their seriousness and determination* These millions of American fighting
men — and women too — scattered the length and breadth of the globe,
want assurance that we are behind them t— that we on the Home Front are
fighting the war too.
The success of the Fourth War Loan will help to give them this
assurance.
You retail people have always taken on a big part of the job of
selling War Bonds during past drives. This time I understand you are
setting for yourselves a higher goal than ever.
The Treasury congratulates you and thanks you^ •
40-5
Mr, Gamble's remarks follow:
In the Fourth War loan next month, we will face the
unprecedented task of selling $5*5 billion worth •
of War Bonds to individuals* I say ,lweu advisedly, for
the Retail Industry of America - and the Retailers * War
Campaigns Committee - have acted in partnership with the
Treasury Department in the sale of Bonds and Stamps since
the first Defense Eonds were issued in May of 1941* Ever
since that time you retailers, have played a major role in
the sale.of almost |1? billion worth of nF u Bonds, and have
adjusted your sights: upward as the increased necessity for
this type of direct financing.imposed steeper quotas upon
us,
'V
:
We saw what you could do in the Third War Loan, when
each of your sales people accepted a quota of f200 in nE ,?
Bonds to be sold dliring the- drive* ' More' than BOO,000
employees have- been:Pited for meeting or beating that quota*
Now in the Fourth War Loan'we will count upon you to fulfill'
another great' pledge — the promise- that your five million '
workers, will'each 'st-riye to sell, at least |200 in nE” Bonds*'
Should you succeed-in that effort, you not only would
carry more than your part of the job, you would again stand
secure in the•knowledge that you as merchants and citizens
hive' done' all within your immediate power to insure the
orderly:financing■of' the■■war, and the eventual attainment
of victory* •
•'
•
•
'•
.
In the past, you retailers have not been content with
merely making War Bonds available to people in all walks of
■life*. You have also taken it upon yourselves to merchandise
those Bonds in newspaper and radio advertisements and store
and-window displays* You*have contributed the promotional
Skill and knowledge•which are. yours.precisely because you
are merchants* You have understood that the war loans are
great merchandising enterprises, and yoqr own organizations,
have been splendidly equipped to provide the three important
essentials■of a' great merchandising campaign: Sales outlets,
personal solicitation and advertising and display promotion*.
As a result, we now have- between 25,000 and 30,000
retail-outlets for. War Bends*' We have enjoyed in recent
War Loans literally millions of dollars in advertising sup
port sponsored by retailers* We have seen our product
displayed in store windows •with as m e h -consideration and
ingenuity as if it were the specialty of the house, And we
have felt the impact of your direct selling*
- 3 -
Governing afl of these activities has been a principle
whiah we believe should be counted a dominant portion of
your contribution. That is your belief in "Good selling".
You have strictly interpreted the meaning of our product
according to the highest purposes for which it is intended ~*r
to help finance the war, to combat inflation, and to provide
a nest-egg for the future. You have learned from long sell
ing experience the futility of exaggerated or misleading
sales appeals, and have been scrupulously accurate in pre
senting to your customers the true story of War Bonds,
As we step forward into the next great campaign, it is
reassuring to know that we will again be supported by your
people, your promotion, and your understanding of the fact
that we must sell our quotas of Bonds, exceed them and keep
them sold*
o G o
tm m tm s
*»»
sm u m ,
B o o t a t e r t o .1 8 4 3 .
*to b «p m u if Ai*«•»•■»— »■»< M q r «tot inrtiln
«tu to ato» to m tan tort* to wttrr to
nM i
imrtari
to p n u t o torlii fir e u i « | t l u ir wittonmal* to«« « • r i
to»«*
Ur
NM t o t H
• t o t o t o ly i t o i t M
« T i r i l i M « f t U i r totow M , not
Ur, * t t e r «ta» e i* w r * tti la t o M u « ,
a u tM M i i r l i l i a l i , « to « « fto to te m » « ta o r to » A tom fr« 4 *
« g to to to « on tmmmrr l,
U
fi S* A**
JTS ïb I*
oratral « r «too, 10 «.
Hal.
194u
.«
«osatala w
U to m « w t e i w t tt a o ,
«ito. «to
TREASURY DEPARTMENT
Y/ashington
F OR I M M E D I A T E R ELEASE,
W e d n esday, D e c e m b e r 29,
P r ess S e r v i c e
No. 40-6
1943-
T h e B u r e a u of C u s t o m s a n n o u n c e d t o d a y t h a t p r o
v i s i o n w i l l be m a d e at customs ports
enable importers to p r e s e n t
of entry to
entries f or
consumption
or w i t h d r a w a l s f r o m w a r e h o u s e f o r c o n s u m p t i o n
ing C u b a n f i l l e r tobacco,
other than
stemmed,
not specially provided for
c i g a r e t t e l e a f tobacco,
unstemmed' or
a nd s c rap t o b a c c o u n d e r t h e C u b a n T r a d e
A g r e e m e n t on J a n u a r y 1,
W a r Time,
cover
1944,
at 12 noon,
11 a, m . , C e n t r a l W a r Time,
M o u n t a i n W a r Time,
Eastern
10 a. m . ,
a n d 9 a. m . , P a c i f i c W a r Time*
FOR IMMEDIATE RELEASE,
V $Q m \£IL '.j3& x. 1S&S»---
The Bureau of Customs announced today preliminary figure« showing the
quantities of ooffee authorised for entry for consumption under the quotas
for the 13 months commencing October 1# 1943* provided for in the Inter*»
American Ooffee Agreement* proclaimed by the President on April 15* 1941* as
follows!
Country of Production
!
I
I
$*ota Quantity
(Pounds) 1/
!
!
5
Authorised for entry
for consumption----- r
* As of (Pate)
!__(fQwUlft)
Signatory Countries!
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
EL Salvador
Guatemala
Haiti
Honduras
Mexico
nicaragua
Peru
Venezuela
1,363,183,480
458,336,340
29,100,720
11,640,288
17,460,432
21,826,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
28,373,202
3,637,590
61,111,512
Hoa-signatory Countries!
51,653,778
2j
B
«
M
H
H
N
333*325*994
137*156*585
3*989*886
2,197,675
2*680*802
11*014*988
939*893
5*715*076
2*878,976
835*776
12*153*931
555*632
439*397
8*674*396
N
1*991*301
Dec» IS* 1943
s
N
H
s
«
H
n
Quotas as established by action of the Inter-American Coffee Board on
March 11* 1943«
-oOo-
TREASURE DEPARTMENT
Washingt on
m
IMMEDIATE RELEASE,
Wednesday, December 29. 1943»
^Press Service
jj0> 4CW 7
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas
for the 12 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement,, proclaimed by the President on April 15, 1941, as
f ollows:
Country of Production
Quota Quantity
(Pounds) 1/
:
Authorized for entry
:
for consumption
: As of (Date)
: (Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
1/
1,353,183,480
458,336,340
29,100,720
11,640,288
17,460,432
21,825,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Dec. 18, 1943
it
n
if
222,325,994
127,156,585
2,089,886
2,197,675
2,680,802
11,014,988
939,893
5,715,076
2,878,975
835,776
12,153,931
555,632
439,297
8,674,396
11
1,991,301
11
11
n
it
ti
11
n
11
it
11
Quotas as established by action of the Inter-American Coffee Board on
March 11, 1943.
-oOo-
xwa
0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, December 31, 1943
dgaOpt
The Secretary of the Treasury, by this public notice, invites tenders
for $1,000,000,000
— w
, or thereabouts* of
-—
91 -day Treasury bills, to be issued
~w *
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided,
The bills of this series will be dated
mature
January 6, 1944
, and will
April 6, 1944____ i
__, when the face amount will be payable without
interest.
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p. m., Eastern War time,
Monday, January 3« 1944
5§5c
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple, of $1,000, and the price offered must be expressed,
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the 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 from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 2 percent ef the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and Drice range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury exDressly 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 from any 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 Bank
in cash or other immediately available funds
_______
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under 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 aré excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (o/fcher than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
- 3 for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemntion at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 41B, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
■ BE .
00
O
-
m
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, December 31» 1943.
12-30-43
The Secretary of the Treasury, by this public notice,
invites tenders for $1,000,000,000, or thereabouts, of 91-day
Treasury bills, to be issued on a discount basis under competi
tive and fixed-price bidding as hereinafter provided.
The bills
of this series will be dated January 6, 1944, and'will mature.
April 6, 1944, when the face amount will be payable without
interest. They will be issued in. bearer form only, and in denom
inations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two to *clock p , m , , Eastern War
time, Monday, January 3, 1944.
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 ex
pressed on the basis of 100, with not more than three decimals,
e * g», 99.925?
Fractions may not be used.
It is urged that
tenders be made on the printed forms and forwarded in the spe
cial envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
T e n d e r s w i l l be r e c e i v e d w i t h o u t de p o s i t f r o m i n c o r p o r a t e d
banks a n d t r u s t com p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d
dealers in i n v e s t m e n t s e c u r ities.
T e n d e r s f r o m others must be
a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the fac e a m o u n t of T r e a s
u r y bills a p p l i e d for, unle s s t h e t e n d e r s a r e a c c o m p a n i e d b y an
express g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or t r ust
company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which pub
lic. announcement will be made by the Secretary of the Treasury
of the amount and price range of accepted bids.
Those sub
mitting tenders will be advised of the acceptance or rejection
thereof.
The 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.
Sub
ject to these reservations, tenders for $100,000 or less from
any one bidder at 9 9 »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 Bank
in cash or other immediately available funds on January 6, 1944.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale or other
40-8
(O v e r )
.- 2 >
d i s p o s i t i o n of Treasury, b i lls s h a l l n o t .h a v e any. s p e c i a l "treat
ment, .as such, u n d e r F e d e r a l t a x Act's,■how' ory-hereafter enacted*
T h e bills s h a l l b e s u b j e c t to estate, inheritance., . gift, r or '
o t h e r excise taxes,; w h e t h e r F e d e r a l or State,- but. shall b e
exempt f r o m a l l t a x a t i o n n o w o r . h e r e a f t e r i m p o s e d op t h e p r i n
c i pal or int e r e s t t h e r e o f by a n y S t a t e / o r a n y o f ‘•the. posses- ■
sions of t h e U n i t e d States, or b y a n y l o c a l - t a x i n g a uthority,
F o r p u r p o s e s of t a x a t i o n . t h e a m o u n t of d i s c o u n t at w h i c h T r e a s
u r y tills are* o r i g i n a l l y sold..by t he.U n i t e d States shall be
c o n s i d e r e d to be i n t e r e s t .
Under. Se c t i o n s 42 and, .117 (a) (1)
•
t h e Internal' R e v e n u e Po-de, a s a m e n d e d ' by S e c t i o n 1 15 of t he
R e v e n u e A c t of 1941-, t h e amount, ô f d i s c o u n t at w h i c h bills
issued h e r e u n d e r a r e sold- s h all not be c o n s i d e r e d t o a c c r u e
u n t i l s u c h bills s h a l l b.e- s o l d , . redeemed'or' o t h e r w i s e d i s p o s e d
of, a n d s u c h bills a r e exc l u d e d f r o m c o n s i d e r a t i o n - a s capital
assets*
Accordingly.,, th e .owner of T r e a s u r y bills ■ (other tha n
life 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 nee d include in .his
i n c o m e t a x r e t u r n o n l y t h e d i f f e r e n c e b e t w e e n t he p r i c e p a i d
f o r s u c h bills, w h e t h e r o n , o r i g i n a l issue or on s u b s e q u e n t
purchase, a n d th e a m o u n t a c t u a l l y r e c e i v e d either u p o n sale
or r e d e m p t i o n - 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 he
r e t u r n is made, as o r d i n a r y g a i n or 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 Uo,' 418, as amended, a n d this
notice, p r e s c r i b e t he terms of t he T r e a s u r y bills a n d g o v e r n
t h e c o n d i t i o n s of t h e i r issue*
C o p i e s of the c i r c u l a r m a y be
o b t a i n e d f r o m a n y F e d e r a l R e s e r v e .Bank or Branch.
-oOo-
- 4
m m m wmm for coinage, and 25,000,000 ounce» of silver wore sold
tinier allocations nade
the Y*ar Production Board, for ooimEEsptiv©
use in industries producing ear goods#
Pwmm of the Alcohol Ttae Unit of the Bamm of Internal demon*
iwsently m r e invoked to attack the evils of Slack imitating of
alcohols,c liquors#
^^^^?a3HP®3Ttas see node easier for Millions of Americans, through
f
inauguration dating the year of the withholding of individual im am
%scm& fron
7tS#
arid
provisions of the Current Î «
P a n e n t Act# jlleanttae, the T r m m a r M b intensified a a t a # of avenues
of incase t ax simplification#
SJethods of simplification alrea^r have
been roccroonded to Congress, and other suggestions *121 be suteitted
(I
as the Treasury experts compléta tsork on tbesan tie Secretary
fun rwlitinl n m
poniaod
^
W
'>
fjeatlfK
!M
O
gW
a»«
>
S
l
3
S \
many fields otter than the negotiating of loans and the collection of
Imi 11i.^Tfi ■ Ufiiriniìtitìen mnt ni,
Looking ahead to post-war problems, the Treasury during the closing
year sade public tentative proposals prepared by its technical staffs
and the experts of otter interested departments and agencies for an
International Stabilisation Fund of the t&sited and Associated Kations,
and a I&ited Mtions Bank for teconstruction and Development*
The
proposals, neither of which so farhas any official status, have teen
conammicated to Congress, to a nance groups, ate to the Foreign
Ministers of nearly two-score otter countries, for examination and
discussion#
Many of the Foreign Ministers have sent experts to
Washington to consult with the Treasury staffs, ate present their osa
views*
Txms
■
' S Ä T ”
American—owned property in foreign lands, including tte Axis countries*
H t h the approval of the lar Production Board, the Treasury in
1943 released an additional *d®B,GOO,QOO ounces of silver for noaconsuxspfcive uses in war plants in this country*
This use of silver
released 7,500 tons of copper and other materials vitally needed f or
war purposes#
In addition, ^ 0 0 0 , 0 0 0 ounces of silver mere lend-
leased to friendly foreign countries, to help then rueet their increased
2
securiiies exclueively to nm ^hBxùóiìg inreetors* Mirrerà"Pi?■thè effent
p o mammà wBaarbefogc thè"end "or-tt» TWgt^'WPigwd- Jtorthgrf.'OB» «afe»
W ìfiSiCii'üiHlii0~“w,t•
*4* 4 * y
(£
F lfty cd llio n persone in 1943 bea#&
worth o f/
iSeries E, F and G War Donde alane# Tranty~«Ì3c
throogh th© pannali
r d l H o n freuu§h&
^ ¿4 ^ ,-¿W í Jp
bar 2tands
*f***> &
The de^^ t iaff-r&oollad prideftally that no Gorertsaant erer before
borrorad so m d b £ r m m
naiy# £gb©n thè raargr lend to thè Ctoeen»ei&
in an ©raergoney,^^ta^adtfjrgjt ls ©fidenc© of mtional unity of whieh
usi»
of
fjjl ©noaìas
wilX
fall to tato
note*
And
«beo thè
Govexnneab
borran» fresa thè xaaiy instead of froa a few, thè ©nde of economie
soundneae aro s e r w e d # ^ ^ ”
Dorrowing necessarìly is thè
ragtimi crlsie#
First rellane© in a
The soc end le to adjuet thè schema of Fodere! tfiomtion
so thatf as prae?>t3y a© possiKLe, %aasm «ili shoulder thelr propor shan©
of thè Govexnnent*« increasod Financial bordea*
7 té t% ts u J iM
fjf
fapS SffllIfflTBfteiir of appros&sntely
olllions ìaKddssaSswwmwgr during
MI
A
1943 representad a contri bution to w ar coste subetantìally lese than thè
increase in thè ustionai im m m sino© war cloude firet nollod up*
Deliering thst ifcilure to pay airrently aa great a share o f war
0 uA *S
coste as'raw cimentane©» persit not ar&y invites inflation hot is
unfair to t aspeare o f thè future, including returning soldier», thè
\Í
Tre&sury urged Cangros» to inorasse thè present Federal le fio s tgr
approodUmtcly $10*5 M ilione per year# So far, thè rasponee of Congrega
has boen dlsappoij^ing^dHt«
Draft of proposed 1943 i w i w
Aaerica9s financial eight* as m i l a® her rdlttaxy
took
the 0i i « l * in
^ g a w a p a i ü ¿ i gijffll.Va f disclosed tonight«
The department's records of participation ty "fluting doUars*
in the year9® m r effort sheer that giant a t o m were struck* * M 2 © its
haras front activities m r © spurred to greater e
gpelling'-law»
c a m fro© individuals or fron such investors as partnership® and personal
trust accounts#
W f a a goal of H 3 feUlles»* the Second War Loan of last April
produced 018*6 billion^he-xwesaasads
For the Third lar Loan* in
015
billions* and the countryfs
September* the goal m s
voluntary response m s
raised to
£18*9
billions#
^a one result of the
19*5
billions in oversubscripti onsf the Treasury m s able to postpone the
Fourth
%r
Loan until
the American
1944*
Oovenaaent
had sought to accasplieb/a large-scale sale of
TREASURY DEPARTMENT
Washington
F OR RELEASE, M O R N I N G N E W S P A P E R S >
Saturday, J a n u a r y 1, 1944»_______
_
Press S e r v i e ©
No, 40-9
A m e r i c a ’s f i n ancial might, as well as h e r m i l i t a r y might,
took the o f f e n s i v e in 1943, a r e p o r t of the T r e a s u r y ’s a c t i v e
•ities d i s c l o s e d tonight.
The d e p a r t m e n t ’s records of p a r t i c i p a t i o n b y ’’f i g h t i n g
d o l l a r s ” in the y e a r ’s w a r effort show that g i a n t b l ows w e r e
struck, w h i l e its h o m e f r o n t a c t i v i t i e s w ere s p u r r e d to g r e a t e r
efforts *
B o r r o w i n g b y the G o v e r n m e n t a g g r e g a t e d $5 7 b i l l i o n s d u r
ing .the twelve m o n t h s , the r e p o r t said.
O f this amount,
f;33 b i l l i o n s came f r o m sources o t h e r than c o m m e r c i a l banks,
a n d a l m o s t ^ h a l f of the $ 3 3 b i l l i o n s came f r o m i n d i v i d u a l s or
f r o m such investors as p a r t n e r s h i p s a n d p e r s o n a l trust a c c o u n t s .
W i t h a goal of $ 13 billions, the S e c o n d W a r L o a n of last
April produced $18*6 billions.
For the Third. W a r Loan, in
S e p t ember, the g o a l was r a i s e d to $ 1 5 b i l l i o n s , and' thé
c o u n t r y ’s v o l u n t a r y r e s p o n s e was $ 1 8 * 9 b i l l i o n s .
As one r e
sult of the $ 9 , 5 b i l l i o n s in o v e r s u b s c r i p t i o n s , the T r e a s u r y
was able to p o s t p o n e the Fourth W a r L o a n u n til 1944.
The. T h i r d W a r L o a n was the first time in h i s t o r y that the
A m e r i c a n G o v e r n m e n t h a d sought to a c c o m p l i s h s uch a largescale sale of secu r i t i e s e x c l u s i v e l y to n o n - b a n k i n g investors.
F i fty m i l l i o n p e r s o n s in 1 9 4 3 b o u g h t a total of a l m o s t
$14 billions^ w o r t h of Series E, F a n d G W a r B o nds alone,
T w e n t y - s i x m i l l i o n were b u y i n g W a r B o nds t h r o u g h the p a yrol l
savings pla n at the end of the year.
The r e v i e w n o t e d that n o G o v e r n m e n t ever b e f o r e b o r r o w e d
so m u c h f r o m so m a n y » W h e n the m a n y l e n d to the G o v e r n m e n t
in a n emergency, it is evidence' of n a t i o n a l u n i t y of w h i c h
non e of o ur enemies will fail to take n o t e .
An d w h e n the G o v
er n m e n t b o r r o w s f r o m the m a n y i n s t e a d of f r o m a few, the ends
of e c o n o m i c sou n d n e s s are served.
H) te
,
B o r r o w i n g n e c e s s a r i l y is the G o v e r n m e n t ’s f i rst reliance
m a w a r t i m e crisis.
The second is to a d j u s t the scheme of
Federal t a x a t i o n so that, as p r o m p t l y as possible, taxes will
h o u l d e r their p r o p e r share of the G o v e r n m e n t ’s i n c r e a s e d
inancial b u r den.
2
N et r e c e i p t s of a p p r o x i m a t e l y $34 b i l l i o n s d u r i n g 194 3
r e p r e s e n t e d a c o n t r i b u t i o n to w a r costs s u b s t a n t i a l l y less
than the increase in the na t i o n a l income since w ar clouds
first r o l l e d up.
'
*
:
B e l i e v i n g that f M l u r e to pay c u r r e n t l y as g r e a t a share
of w a r costs as our c i r c u m s t a n c e s p e r m i t not o n l y invites in«*
f l a t i o n but is u n f a i r to taxpayers of the future, i n c l u d i n g
r e t u r n i n g soldiers, the T r e a s u r y u r g e d Congress,‘to increase
the p r e s e n t Federal levies b y a p p r o x i m a t e l y $10«5, b i l l i o n s per
•year.
So far, the r e s p o n s e o f C o n g r e s s has b e e n d i s a p p o i n t i n g f
T a x - p a y i n g w a s m a d e e a s i e r for m i l l i o n s of A meimcans,
t h r o u g h i n a u g u r a t i o n during the year of the w i t h h o l d i n g of- i n
d i v idual income taxes f r o m w a g e s a n d salaries:, u n d e r 1p r o
visions of the C u r rent T ax Payment'Act.-,
M e a n t i m e - the
T r e a s u r y has i n t e n s i f i e d a s t udy of a v e n u e s of income tax
sim p l i f i c a t i o n .
M e t h o d s o f ,simplification, a l r e a d y have b e e n
r e c o m m e n d e d to' C o n gress, and. o t her sugg e s t i o n s w i l l be. s u b
m i t t e d as the T r e a s u r y e x p a n t s complete work, on them.
W a r t i m e r e s p o n s i b i l i t i e s a n d a c t i v i t i e s of the T r e a s u r y
extend, to m a n y f i e l d s o t h e r than the n e g o t i a t i n g of loans and
the c o l l e c t i o n o f taxes,
■Looking a h ead to p o s t w a r problems, the T r e a s u r y during
the c l o s i n g y e a r m a d e p u b l i c tentative p r o p o s a l s p r e p a r e d by
its tec h n i c a l staffs 'and'the experts of o t h e r I n t e r e s t e d
d e p a r t m e n t s a n d a g e n c i e s for an I n t e r n a t i o n a l S t a b i l i z a t i o n
Fund, of the U n i t e d a n d A s s o c i a t e d N a t ions, a n d a U n i t e d N a
tions B a n k for R e c o n s t r u c t i o n a n d D e v e l o p m e n t .
The pro p o s a l s ,
n e i t h e r of w h i c h 4 q far has a n y of f i c i a l status, hav e b e e n
c o m m u n i c a t e d ‘to Congress, to fi n a n c e groups, a n d to the F o r
e i g n M i n i s t e r s of n e a r l y t w o - s c o r e o t h e r countries, for e x a m
in a t i o n a n d d i s c u s s i o n .
Many, of the F o r e i g n M i n i s t e r s have
sent' e x p e r t ’s to W a s h i n g t o n to c o n sult w i t h the T r e a s u r y staffs,
a n d pr-esent- their own views,
T h r o u g h a census c o n d u c t e d b y its F o r e i g n Funds Control,
the T r e a s u r y e s t a b l i s h e d d e t a i l e d .reports r e g a r d i n g b i l l i o n s
of dollars* w o r t h of A m e r i c a n - o w n e d p r o p e r t y in f o r e i g n lands,
i n c l u d i n g the A x i s countries,
W i t h the ap p r o v a l of the W a r P r o d u c t i o n Board, the Treas*^
u r y in 194 3 r e l e a s e d a n a d d i t i o n a l 2 2 5 , 0 0 0 , 0 0 0 ounces of
silver for n o n - c o n s u m p t i v e u s e s in w ar p l a n t s in this country*
This use of silver r e l e a s e d 7 , 500 tons of copper a n d o t her
m a t e r i a l s vi t a l l y n e e d e d for w a r purposes, , In a d d ition,
4 1 , 0 0 0 , 0 0 0 ounces of s i l v e r w e r e l e n d - l e a s e d to f r i e n d l y f o r e i g n
3 -
countries, to h e l p them m e e t their i n c r e a s e d w a r t i m e needs for
coinage, a n d 2 5 , 0 0 0 , 0 0 0 ounces of silver were sold u n d e r
a l l o c a t i o n s m a d e b y the W a r P r o d u c t i o n Board, for c o n s u m p t i v e
use in indu s t r i e s p r o d u c i n g war goods.
Powers of the A l c o h o l T a x U n i t of the B u r e a u of Internal
Revenue r e c e n t l y were i n v o k e d to a t t a c k the evils of b l a c k
m a r k e t i n g of a l c o h o l i c liquors.
o0o~
TREASURY DEPARTMENT
Washington
Press Service
*fO— / 0
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, January 4. 1944«
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated January 6 and to
1943,
mature April 6, 1944, which were offered on December 31,/were opened at the Federal Re
serve Banks on January 3*
The details of this issue are as follows:
Total applied for - $2,255,535,000
Total accepted
- 1,014,794,000
Average price
(includes $48,047,000 entered on a fixed-price
basis at 99.905 and accepted in full)
- 99.906 Equivalent rate of discount approx. 0.373# per annum
Range of accepted competitive bids:
High
Low
- 99.915 Equivalent rate of discount approx. 0.336# per annum
- 99.905
•
•
*
«
*
0.376# *
"
(19 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
*
72 ,350,000
1,082,845,000
36,377,000
14,585,000
16,056,000
29,123,000
797,588,000
24,610,000
9,095,000
36,778,000
23,215,000
112,915,000
$
12 ,255 ,535,000
«L,0 U , 796,000
TOTAL
22 ,130,000
236,773,000
12,887,000
12,965,000
12,571,000
14,889,000
584,113,000
8,431,000
5,005,000
28,516,000
9,366,000
67.150.000
•TREASURY D E P A R T M E N T
Wa s.hington
FO B RELEASE, M O R N I I d N E W S P A P E R S ,
Tuesday, J a n u a r y 4, 1944,
Press S e r vice
No. 40-10
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d las t ev e n i n g that the
tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y
b i lls to be d a t e d J a n u a r y 6 a n d to m a t u r e A p r i l 6, 1944, w h i c h
wer e o f f e r e d on D e c e m b e r 51, 1943, w e r e o p e n e d at the Federal R e
serve Banks on J a n u a r y $ *
The d e tails
of this issue are as
follows:
Total a p p l i e d f o r - 1*2,255,555,000
Total a c c e p t e d
1 , 0 1 4 , 7 9 4 , 0 0 0 (includes $ 4 8 , 0 4 7 , 0 0 0 e n
tered on a f i x e d - p r i c e basis at
9 9 .905 a n d a c c e p t e d in full)
A v e r a g e p r ice
Range
- 99.2 0 6 E q u i v a l e n t
rate of disco u n t a p
p r o x 0,873/? p e r a n n u m
of a c c e p t e d © p ^ p e t i f i v e b i d # :
High
- 99.915 E q u i v a l e n t
rate of d i s c o u n t a p
prox. 0*336;$ p er a n n u m
- 9 9 . 9 0 5 E q u i v a l e n t rate of d i s c o u n t a p
p r o x *-• 0. 3 7 6 $ p e r a n n u m
Lo w
(19 p e r c e n t of the a m o u n t bi d for at
the low price was accepted)
Federal Reserve
District
Total
A p p l i e d for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco
$
$
TOTAL
72,350,000
1,082,845,000
36.377.000
14.585.000
16.054.000
29.123.000
797.588.000
24.610.000
• 9,095,000
36.778.000
23.215.000
112.915.000
$2,255,535,000
22,130,000
236.773.000
12.887.000
12.965.000
12.571.000
14.889.000
584.113.000
8.431.000
5.005.000
28.516.000
9.364.000
67.150.000
$1,014,794,000
,;y
35 The choice lies before us on the tax front and renegotiation
front*
As the war moves on toward victory we shall have to
make many choices between these alternatives*
gain will be tempting*
The immediate
The lasting value will seem ephemeral.
"Present joys are more to flesh and blood
Than & dull prospect of distant good.*
My hope is that we will have the spirit, the imagination,
and the courage, to resist the pressures of apparent present
interests and to make our choices in terms of the enduring
interests of the future*
*1
■j
- 34 -
■f
I cannot believe that most business men really desire
extortionate^ war profits and a whirlwind of postwar scandal*
Let m predict, with Secretary Mbrgenthau, that if these
provisions are enacted into law, mthey will come back to
plague not only the Congress but the war goods manufacturers
who get tes^orary gain from them.11 It Is interesting to
compare the Secretary’s words with a recent statement made
by Mr* Charles 1* Wilson, executive vice-chairman of the
War Production Board*
!&** Wilson said:
"This above all is
a time when the industrial leaders of America owe it to their
country and to themselves***.*to avoid the temptation of
sacrificing enduring values for temporary gains*.*.*
Conclusion
In closing,
I should like to stress that distinction
between transient gain and permanent value*
often in contrast.
fhe two are
In this connection, I should like to commend to you
the minority report of the Senate Finance Committee.
It
elaborates on some of the points I have made and discusses
in detail and with great force the major defects in the
bill 0 recommended by the majority of the Committee.
Under the Committee amendments we should have
renegotiation in name, but not in fact, — an unworkable,
discriminatory statute that makes many business men
vulnerable to the charge of war profiteering and recaptures
only a small amount of excessive war profits from one
segment of industry.
I doubt if the business men who have urged these
changes truly represent business.
are not doing industry any service.
I am very sure that they
- 32
This provision makes it impossible to conclude a renegotiation
agreement within any reasonable time*
I do not believe the
business man wants to add this element of uncertainty to the
many others that beset him in these chaotic times.
It is no exaggeration to say that these amendments
emasculate the statute.
Their adoption would make it worse
I
than nothing; it would leave & facade of war profit control
with no reality behind it*
"Business Week," in its December 18,
|
1943, issue cited the Senate Finance Committee’s "very
scientific demolition job® on the renegotiation law.
"The
Committee," it said, "shrewdly avoided voting for outright
repeal, knowing Congress would find that hard to take in an
election year*
Instead, it is trying to get the same result
by trimming down the scope of the act and by curtailing the
authority of the Price Adjustment Boards.®
P
- 31 Still another provision requires the renegotiating
agencies to take estimated taxes into account for the
purpose of determining excessive profits.
This is an anomaly
in a measure that is concerned with the establishment of
sound prices.
It fundamentally changes the character of the
renegotiation process from a re-pricing procedure to a super
excess-profits tax.
It shifts the war contractor’s war tax
burdens to the Government,
lore precisely, it transfers the
war contractor’s war tax load from his own shoulders to those
of other taxpayers generally.
Finally, the Senate Finance Committee bill contains
a provision requiring the renegotiating agencies to include
as a cost in the determination of excess profits carry-backs
of unused excess-profits credits and operating losses, as
well as amortisation recomputations.
30 (cont)
the company realized a net profit; after taxes for 1942 of $3*840,000
as compared 'with its net income after taxes of $432*000 in 1959* its
best year up to that date. This represents 122 percent of its net
worth at the beginning of 1942,
%
l
<£ <ft
0
|
IfK-fit,
30
i
A mudato ry exemption for
n standard
commercial ertides”
exempts the profits — however excessive they may be — from the
sale of such articles from renegotiation* The record shows that
exhorbitaht profits are being earned on a large scale by concerns
that produce standard commercial articles* As a matter of fact*
contractors making standard commercial articles hold s more
advantageous position than other war contractors* Since they are
making their peacetime products, they have had and they will have
fewer conversion problems* Apart from the merits of this exemption,
there will be interminable debate as to what contracts are subject
to the Act*
READING COPY ONLY
This exempti
will exclude from renegotiation a large part of
war procurement on which enormous profits are being realised*
In War Department procurement, for example, standard commercial
articles comprise a large part of the medical supplies and personal
equipment as well as components of communications equipment, tanks.
motor vehicles, and aircraft*
In many of these fields, the expanded
volume of production has yielded extremely high profits, often
ranging from 25 to 35 percent of the price*
To illustrate the danger of this amendment I want to tell you
about one corporation which is continuing its peacetime production
of self-locking nuts and which would seem to be largely exempted*
With an average 1936-39 business of $744,000 annually, the company
\
had total sales of $25 million for 1942, of itiich two-thirds were
for war purposes and one-third was non-renegotiable commercial business*
On this large volume of business th© company lias sharply increased its
profit margin to 55 percent* With this expanded volume and higher margin
- 30 nade jriftro active* requiring the
To sake matters worse, it
\
>
‘
»
Government to refund millions\aireadj recovered from these
companies,
A mandatory exemption for nstandard: commercial articles
exempts the profi\s — however excessive they may he —
/:
A
.
,
the sale of such articles from »negotiation.
from
________ .
The record
shows that exorbitant p^fit^f are being earned on a large
scale by concerns that profihce standard commercial articles
for the war program.
$» a matthr of fact, contractors making
\
1
I
S
standard commercial Articles hold s^aore advantageous position
than other war eoé tractors.
1 1 1 1 1 1 1 1 ;
■
Since thej^are making their
■
\
| l
peacetime products, they have had and thejk will have fewer
/
\
conversion problems.
.
Apart from the merits oKthis exemption,
\
r
there will
be interminable debate as to what contracts are
subject to the Act,
i
f
29
Another provision restricts the application of the Act by
making it apply only to contracts or subcontracts for ’’components’*
s
of articles actually delivered to the Government under prime contract«©
It exempts from renegotiation a large group of subcontractors who have
admittedly made excessive profit«© To make matters worse, it is made
retroactive, requiring the Government to fefund millions already
*1
recovered from these compaAieSo
This new definition will operate to exempt from renegotiation
the sales of mny articles whose costs enter into war production.
It will be a windfall to the machine tool industry, makers of building
and electrical equipment, factory machinexy and many other sullies.
e € cranes and
rmrlatfaeturei*«
nfi
excavators, eleetric are welding machines, and electrodes, which
apparently would escape renegotiation on most of its war business.
In 1940, the best .year in its history up to that time, the company
had a net ofofit after taxes of #561,000, as compared with a
net profit after taxes in 1942:’estimated to be #2,795,000. This
is more than five times the net earnings of the company in its best
pre-war year
29 There can be no valid objection to a procedure which protects
contractors in their right to & fair determination of the
facts and to adequate judicial review of decisions of
administrative agencies.
However, this principle can have
no application to those cases in which agreements have been
reached.
Attempts to make it applicable to them fall wide
of the mark.
The adoption of this provision will mean that
over 8,000 cases, involving over $5 billion of refunds and
price reductions, ©ay be reopened and interminably litigated.
\
/Another provisión restricts the application of the Act
ir
A
b/ making it apply only
contra^» or subcontracts for
* x ^components* of articles aexufcJly delivered to the Government
under prime contract®.
It exempta from renegotiation a large
/
group of subcontractors who have admire dly made excessive
profits^
-
28
-
The $5 billion does not represent net sayings«
Without
renegotiation, the greater part of this figure would have
been collected in excess profits taxes.
Renegotiation,
however, has saved at least $1*1/2 billion that would not
have been touched by taxes.
If the Price Adjustment Boards
are not impeded in their work, they will probably save the
Government as much again in the days to
com
*
I should like to tell you dramatically how the
renegotiation provisions of the pending Revenue Act are
but an invitation to repeat the mistakes of the First World
War, are but a preface to bitter charges of war profiteering
But good drama, of necessity, distorts some of the facts.
So I shall sacrifice histrionics on the altar of accuracy.
The bill contains a provision permitting contractors
to reopen in the courts all "closed" renegotiation cases,
that is, eases which have resulted in voluntary agreement
between the Government and the war contractor*
~ 2? ~
The law directed the war procurement agencies, principally
the War Department, Hairy Department, and Maritime Commission,
to require renegotiation of the contract price whenever
a contract yielded excessive profits*
It also directed them
I
to eliminate inordinate profits by reductions in the contract
price.
The assignment was known to be hard.
In fact* the task
of renegotiating with the tens of thousands of contractors
and subcontractors engaged in war production was gargantuan.
The departments organised for their work,
Adjustment Boards.
ifesjf s#t up Frio®
They recruited personnel largely from
business* law and accounting.
To date the total amount reclaimed from excess! t o prices
on war contracts by renegotiation is well
otof
$5 billion.
Both declared that In event of a war in which citizens
were drafted, all other resources should likewise be drafted.
Yes, while public memory was still green, we were solidly
against lush war profits*
The law on renegotiation of war contracts was passed
in April, 1942.
This new kind of war profit legislation
was a response to the Government and business criticism
of rigid profit limitations based on an allowable profit
upon a low and arbitrary percentage of sales.
The law was
made flexible so that justice could be done in individual
cases.
Yet we hear much criticism now that the renegotiation
statute has no standards*
by recourse to
the
It can be made plain and rigid
old arbitrary limitation expedient*
But
the chief sufferers would be the business men who complain
of its vagueness*
** 25 “*
fhese are tax criticisms of tbs bills
rather than positive faults*
they are deficiencies
My
count against the
bill, particularly the Senate Finance^Commit|ee version,
is that it
When the Government began making contracts for war
supplies in 1940, the big question was how to hold down
profits*
Everyone remembered the profiteering and inflation
of the last war*
then we had relied on the excess profits
tax to curb profits.
many fortunes*
We relied in vain*
far business built
For twenty years after the 1918 Armistice
the country talked about taking the profit out of war*
Perhaps some of you recall the Republican and Democratic
party platform pledges of 1924*
- 24 ~
In other words* to collect less, perhaps much less, than
$300 million from the 9 million taxpayers at the bottom of
the income scale, the 1943 Revenue Bill would complicate the
collection of $17 billion from 50 million taxpayers throughout
the scale*
I repeat what I stated to the Senate Finance
Committee several weeks ago in analysing the House bill:
*It seems utterly unreasonable to erect a mountain of
complexity for such a molehill of revenue.*
Renegotiation
Believe it or not, I have yet to reach the worst
feature of the 1943 Revenue Bill.
I have protested that
the bill does not raise sufficient revenue.
I have declared
that it almost com pletely ignores the threat of inflation.
I have said that it refuses to millions of taxpayers the
basic simplification that they deserve.
- 23 The alternative, represented by the Victory tax and substitutes
devised by the Congressional tax committees, imposes distressing
complexities on 50 million taxpayers without contributing
Sven the p re tty
substantially to income tax revenues.
label "Victory tax" cannot conceal the unfortunate complexity
of & dual income tax system.
The label on the cover cannot
change the nature of the contents —
it is a Pandora’s box
of troubles no matter what we call it.
Although the Treasury’s proposals as a whole would
not sacrifice revenue from the 9 million taxpayers, there
would he a loss in income tax revenue from this group.
At
present, the 9 million taxpayers in question are paying
about $275 million in Victory taxes.
Under the House bill,
they would pay $161 million and under the Senate Finance
Committee version of the bill, they would pay slightly more
than $275 million.
~
22
-
It is important to identify the 9 million taxpayers
who would he relieved of future Federal taxes on income.
They are exclusively heads of families earning less than
the exemptions proposed by the Treasury» that is, $1,100
per year plus $300 for each dependent.
The only reason
why they are now taxable is that their income exceeds
the flat $624 Victory tax exemption which applies to every
income recipient regardless of his family obligations.
If the 9 million taxpayers who are the center of the
controversy could he kept on the rolls without undue com plexity
■i
h-'tfv'V
v. V
'•
;uf.fr Afi.j
' I'
and if the proportion of their contributions to total revenue
(7
were substantial, some justification could bej found for their
Jfll MBK
retention as income-tax payers.
cannot he met.
■
.';i
But these conditions simply
To extend the regular income tax downward
i
to encompass these 9 million taxpayers would subject them
Vj/ SgJf '■ ■
¡¡pi ^¿¿l\
f
to crushing and inequitable burdens.
w 'M '
■ M L * ' t ■’ * tii
•■/ m E
k
"j '
-
21
-
You may wonder why the House, with its minimum tax,
and the Senate Finance Committee, with its modified Yictory
tax, are straining every legislative muscle to keep a
separate income tax in existence*
The crux of the matter
is the 9 million taxpayers at the bottom of the tax scale
who are now paying the Yictory tax, but would be relieved
from any tax on income under the Treasury proposal*
To
clear away the smoke screen with which this issue has been
confused, I should like to explain briefly wby the Treasury
felt it desirable to relieve these taxpayers from Federal
taxes on income*
The absorption of the Yictory tax would not result in
a reduction of the total tax burden of the 9 million
taxpayers.
As a consequence of the excise tax increases
proposed by the Treasury, they would pay practically as
much under the Treasury proposals as under present law.
The relationships between the minimum tax and the regular
tax are so complex and elusive that m&nj husbands and wives
would be forced to go through a len g th y series of alternative
computations to determine their lowest possible tax liability.
All in all, the Treasury concluded that the minimum tax
"cure” prescribed in the House hill is worse than the
Victory tax "disease."
Fortunately, the defects of the minimum tax plan in
|v
the House bill were so patent that the Senate Finance
Committee refused to accept it.
plSjjjlf|jS|
-"o•
Unfortunately, the Committee
was unwilling to abandon the Victory tax, although it did
effect some simplification by changing its rate to & flat
3 percent for every taxpayer regardless of marital or
dependency status.
j
To that end the Treasury has proposed that the Victory tax
be eliminated and that with a reduction of exemptions and
dependency credits its burden be absorbed into the net income
tax scale*
The tax bill, as passed by the House, would repeal
the Victory tax, an essential step if we are to achieve
simplification*
However, instead of integrating it with
the regular income tax, it sets up a separate minimum tax*
In other words, it replaces an additional tax with an
alternative tax. If this minimum tax were to become law,
the taxpayer would be confronted with two alternative taxes,
each with different rates and each with an entirely different
set of exemptions.
-
18
-
I need only remind you, first, that the Victory tax has
introduced a separate concept of taxable income; second, that
it uses an exemption different from the regular income tax
exemption; third, that it requires an entirely separate tax
computation; and fourth, that it recognizes family status
only through a complicated credit*
This credit was labeled
a postwar credit, but m s made available currently on such
easy terms that the word ^postwar*1 became a misnomer.
Congress, recognizing this infirmity, eliminated the postwar
aspects of the credit and made it simply a current credit.
-
,
-
if:
The Treasury recommended this change and would/ go even further.
It would like to see the rest of this noble experiment given
a decent burial.
In contemplation of its death, the logical
■
J
/
move would be to shift the burden of the Victory tax to the
regular income tax structure.
- 17 They introduced a number of new features into the returns
to be filed next March, and made some progress in modifying
the traditional form of the income tax return in the interest
of simplification*
I am frank to predict, however, that taxpayers will
not call the results simple*
Time and again the move for
simplification has run against a stone wall*
The primary
obstructions this year were the Victory tax and the
cancellation feature involved in the transition to a
pay -as-you-go system.
W
,
,
,
Fortunately, the hurdle of cancellation
' ;-;:r
will be behind us when we draft the return forms for 1945.
In this group I need not elaborate upon the complications
of the Victory tax*
- 16 ...
A
I
Our immediate problem today is simplification for the masses
of taxpayers.
If the income tax - the bulwark of our tax
system - is to succeed, we must find a way of making the
tax understandable to 50 million taxpayers who cannot employ
lawyers and accountants.
We must tackle the job m full
realisation that these millions are not concerned with what
the statute and the regulations and the court decisions say.
To them the income tax return and the instructions on that
return are the whole story.
It is logical, then, that
simplification should begin at that level.
It was at that)level that the Treasury began its
current campaign against income tax complexity.
A group
of legal and research experts, joined by several specialists
in the layman’s point of view, gathered around the conference
table last summer to simplify individual income tax returns.
- 15 When I was in your position I was interested in the problems
of the few clients I had.
Their problezas were in the field
of estate and gift taxes, corporate reorganisations, valuation,
trusts.
I was intensely concerned with the complication of
our tax laws in this territory.
It seemed unjustifiable.
I still believe it is intolerable, and I shall leave no
stone unturned in my effort to make these provisions of
the statute simpler and easier for the taxpayers who are
most affected by them to understand.
job if we would do it well.
the recent Dobson case:
That is a long, uphill
As Mr. Justice Jackson said in
"No other branch of the law touches
human activities at so many points.
It can never be made
simple, but we can try to avoid making it needlessly complex.1*
But I must confess to a shift of interest since I have
been with the Treasury Department.
In this, my third attempt, I am reminded of Fit the First
in Lewis Carroll’s "The Hunting of the Snark":
"...Just the place for a SnarkJ I have said it twice:
That alone should encourage the crew.
Just the place for a SnarkI I have said it thrice:
What I tell you three times is true.”
I hope that what I shall say may be true of itself and not
by virtue of reiteration.
I hope it was true the first time
I said it.
The desirability of simplifying our tax laws is so
obvious that I shall not labor it here.
is enough.
One set of figures
In 1932 exemptions and national income were at
such levels that less than two million returns were filed
M
; •.''•••
.
/ I n
with the Bureau of Internal Revenue.
, ,■
*
Time and the war will
raise this figure to 44 million for 1944.
in this distinguished group of Indiana attorneys
I should like to draw one item from my personal experience
in the tax field.
- 13 Neither the Bouse nor the Senate hill attempts to
cope with this dangerous situation.
Any pretense that
the hill will appreciably diminish inflationary pressure
is what Justice Holmes called f,little more than a fiction
intended to beautify what is disagreeable to the sufferers
A $2 billion tax bill is hardly a gesture of inflation
prevention*
It is proof- that the Congress either does
not w e e e g & r e the inflation clouds on the horizon, or that
to batten down the hatches against
them.
Simplification Test
Before examining the new tax bill in the light of its
failure to meet the popular demand for simplification, I shall
confess that I have made two speeches in favor of simplifying
our tax laws.
M6 p 6 than ever they need the help of additional taxes which
reduce spending power*
If they do not get this help, and
other help that is being asked, our soldiers and sailors
and marines may return to 50 cent coffee and $1 hamburgers*
The arithmetic of inflation is simple*
In 1939
consumers had $11 to spend upon every $10 of goods*
In
1940 they had $11.10; in 1941, $11.80; in 1942, $13*30; in
the first half of 1943, $13.80.
The rate promises to be
fatfMfrfwiW
about $14 for the fiscal year 1944.
In total terms the
4
Ration has $126 billion of spending power this fiscal year
after existing taxes -- against $90 billion of available
goods.
The excess of $36 billion, plus accumulated savings
of $55 billion, make a total of over $90 billion nervous
dollars, which threaten our price structure with collapse.
11
-
A returning soldier is sitting on a stool in front of the
counter with his hand reaching into his pocket for money.
His uplifted face is directed at a sign to which the waiter
is pointing.
The sign lists prices:
coffee, 50 cents;
coffee, with cream, 75 cents; hamburger, $1; hamburger, with
french fried potatoes, $1.50.
a question:
"Shall we let him come home to this?"
£
.
/
The title of the picture is
'
.
'
He may very well come home to such prices — and we at
home may pay such prices — unless we face the economic
facts that meet every qualified eye.
Without reduction,
pressure of abundant income will be too much for our existing
price structure*
Price and wage ceilings, and rationing have
held the line fairly well so far.
No one knows the ultimate
breaking point of these direct control devices, but we do
*
know that they are now
-
10
*
We forget that it has stayed within bounds because of the
steps we have taken to prevent rising prices.
The danger is
that we are emotionally weary of hearing the word "inflation®
at the very time it is most threatening.
Ton remember the
fable of the shepherd boy who assuaged his loneliness by
crying, "Wolf, Wolf,® to the villagers.
When the wolf
actually caïæ, he lost his flock because the people refused
to believe him*
I cannot cover the subject of inflation in a short
evening address.
It comes from a sudden and enormous
increase of money among a people without a corresponding
increase of things to buy.
It ends in prices that take away
the buying power of savings as well as income. You m y have
seen the picture of "Joe’s Diner® in Harry Scherm&n's
pamphlet on inflation.
- 9 Inflation Test
One might understand a refusal to be taxed, if it
meant more purchasing power in the pockets and bank accounts
of taxpayers*
Against the big loss of participation In the
war effort there would be the small, Immediate gain of
increased wealth*
From a narrow, selfish viewpoint such an
attitude might make sense.
But the grim fact is that as
a people we gain nothing by refusing to pay taxes.
contrary, we stand to lose a great deal.
On the
Inflation very well
may take what we do not pay to the tax collector.
And more.
I sometimes suspect that many of us are passive about
inflation because we have heard so much about it.
For
two years the economists have been warning us that inflation
would soon engulf us, yet so far we are only knee-deep in it.
8 -
If these amendments stand, it will be years before we know
precise financial effects; but it is possible that they will
.,
.
/D
I wonder wh&t returning soldiers and sailors and
marines will think of this tax measure — a statute passed
by the people at home which says:
We did not want to
surrender to the Government a third of our war-made
prosperity while you were fighting the enemy In mountain,
jungle, desert and on the sea.
We preferred to pass on
the load to the future when you who fought would also be
required to pay.
^
With all this spending the American people have
saved more than ever before.
They have accumulated in the
last 3 1/2 years liquid savings of more than $55 billion
of which fully half is in increased currency and bank
accounts.
Is it not clear that they could afford to pay
|10.5 billion of additional taxes?
I, for one, believe
they would have been willing, if not glad, to do so.
If I am right, little need be said about the bill soon
to be debated in the Senate.
M
it passed the House, it
was expected to raise $2.1 billion in a full year of operation.
The cancellation of the automatic rise in Social
Security taxes will reduce prospective receipts by $1.4 billion.
That means that the Senate bill will raise only
$876
million.
This is without allowance, however, for revenue losses and
increases in expenditures resulting from the Finance Committee
renegotiation amendments whichjssmgfrgnaB** war profiteering.
It would have permitted us to save over 5 times as much as the
$5
billion we were able to save In liquid forms In 1940, the
highest amount ever saved in any year in the prewar decade.
Our people are financially prosperous.
In the period
from January 1, 1940, to June 30, 1943, they accumulated
$55 billion of savings, after paying increased taxes.
In
1943 they spent nearly twice as much for clothing as in
1939.
They spent more than twice as much on restaurant
meals and drinks.
on jewelry.
They spent nearly three times as much
I do not mean to imply that every American is
living in a paradise of silk shirts, juicy steaks, and
corona-coronas, though I cannot help recalling the aphorism
of your distinguished neighbor who said;
needs is a good five-cent cigar*.
*lhat this country
*
- 5 ~
f
It was plain to the Treasury on October 4* 1943,
when the Secretary of the Treasury proposed to the Souse
Ways and Scans Committee biwMwritet additional tax
program of $10*5 billion which he described on November 29th
as "needed to safeguard the financial and economic future
of this country during and after the war**
This program might have been criticized as inadequate,
but it could hardly be fairly condemned as too drastic*
We
faced a period in which consumer Income after taxes,
$126 billion, exceeded by $36 billion the amount required
to buy the $90 billion of available consumer goods and
services at present prices.
Our people would have $36
billion which would not be spent.
The $10*5 billion program
would have appropriated to government use in wartime —
the most critical period in our history — less than
one-third of the excess.
in
- 4
There is no escape from these expenditures*
are war expenditures.
fighting forces.
They
They provide weapons for our
If we could, we would spend more; if
we had no increased revenue possibilities, we would still
spend to win the war as completely and as quickly as possible.
j
...
u
But the very emergency which makes us spend provides
the stuff of debt avoidance.
In 1933 citizens had cash
income after taxes of $44 billion; in the glorious year
1929, they had $80 billion.
In the current fiscal year
1944 they will have $126 billion, far above the prosperity
we thought we had in the peak year of the Twenties.
The
||gp
way out of debt accumulation is plain to
Third, it denies to more than 60 million taxpayers the
simplification of tax law to which they are entitled*
tad*
finally, it makes renegotiation unworkable and ineffective
as a means of controlling profits on war contracts.
The Revenue Test
We may as well face the facts at the outset*
With
war expenditures of $92 billion in the current (1944) fiscal
year, a total reduced budget of $98 billion, and a revenue
yield from existing taxes of $41 billion, we are running
a deficit of $57 billion*
In November,
1943, the Federal
Government spent $5.7 billion more than it collected in
revenue*
We were accumulating debt at the rate of nearly
$200 million a day.
/
At the end of, the fiscal year, June 30,
1944, this means a debt of about $200 billion, on which the
interest charges will be close to $4 billion a year*
- 2 -
Specialists have a way of speaking evasively in $2 words and
in long dreary paragraphs.
The charge has been made,
sometimes with justification, th a t they have a vested interest
in keeping their subject mysterious so that their special
skill will not lose its market value.
and directly in lG-cent words.
You Hoosiers have a reputation
for being able to take straight talk.
f
I want to talk frankly
I am counting on you
i'
to live up to that reputation tonight.
To begin with, I want to say unequivocally that the
Revenue Bill of 1943, as it is about to be debated on the
Senate floor, is a tragic failure.
It fails to meet the
three principal tests of a wartime revenue measure.
it does not raise enough revenue.
First,
Second, it fails as an
instrument to reduce inflationary pressure.
TEE 1943 REVENUE BILL
I am more than glad to be in Indianapolis tonight.
Apart from the honor conferred in an invitation from the
Indiana State Bar Association, the capital of this State
brings special recollections to me.
It was the scene of
early labors on tax books published by the Bobbs-Merrill
Company.
Those were the happy days when two years elapsed
between revenue acts, and tax law did not change before
printer’s ink was dry.
We worked day and night here in
the Claypool Hotel feeding manuscript to our insatiable
publisher*
Little did I think then that I should return to
Indianapolis many years later to close the circle by appearing
before this gathering as a specialist in tax matters.
I should like to talk to you tonight not just as
a specialist, but also as a fellow*citizen.
TREASURE DEPARTMENT
Washington
(The following address by Randolph E. Pani#
Goners 1 Counsel of the Treasury, before the
Indiane State Bar Association, at the
Claypool Hotel, Indianapolis, Indiana, is
scheduled for delivery at
p, a«»
J
Central War Time, Friday, January
194^
and! is for rcTeas'e at tnat tin»".;
/
TREASURY DEPARTMENT
Washington
(The following address by Randolph'EY Paul,'
General Counsel of the Treasury, before the
Indiana State. Bar Association, at the :
Claypopl ..Hotel, .Indianapolis, Indiana, is
scheduled for delivery at 7:30 p.m . ,
Central War Time, Friday, January 7, 1944.
and is for release at that time.)
^
‘
THE .1943 REVENUE BILL
r
-
.V ; ?
-1' am more than glad to be in Indianapolis tonight. Apart from the
honor conferred in an invitation from the Indiana State Bar Association^
the capital of this State ,brings special recollections to iiie. ’It vías the
scene of early labors on.'tax books published by the Bobbs-Merrili ;Company.
Those ‘were the happy days .when.two years elapsed between revenue .acts, andtax law did^ not change, before printer* s. ink ’was dry*/ We''worked pay'.and
night libre in^ the Claypool Hotel feeding manuscript !to our insatiable
publisher. Little did I think then that I should return.to Indianapolis
many years later to close the circle •
.by ..appearing before this gathering
as a specialist,in tax matters. ...
'Yr'
* •'
•
‘
•
I should like to talk to you tonight not just *as a .Specialist, but also as a fellow-citizen. Specialists have a way of'■speaking evasively
in $2jwordsc and ïin long dreary paragraphs. The charge has been ..made,;
sometimes;^with justification, that they have a vested interest, .in'.keeping
their subject mysterious s.o that their special skill will not lose its
market value. I .want to talk frankly and directly in 1Ó—cent words'. You
Hoosiers nave a reputation, for being able tor take straight talk. I am
counting on you to live up to that reputation tonight.
-.rwo T° b?gi? witb> I want to say unequivocally-'that the Revenue Bill •of
19433 ^ as it is about to be debated on.the Senate floor, is a tragic failure.
It fails tó meet the three principal tests of a wartime revenue measure,
first, it does not raise-enough revenue.-. Second, fir fails as ah. instrument
to reduce inflationary pressure;. Third, it denies to'more than 50 million
taxpayers the simplification of tax law to which they are 'entitl^. tad
fo h R h « a k e s y w e g o tia tiM i unworkable and in e ff e c t iv e as a meait-s- of' ■
c o n tro llin g p r o fits on war c o n tra cts.
The.R evenue Test ■
faoe the f * ° t s a t the o u tse t.
With war expenditures !
* 0 current (|§U) fiscal year, a total reduced budget'
i #90 billion, and 'a revenue yield from existing taxes of $41 billion
° î f?o Million “
we ara running a deficit of $57 billion. In November, 1943, the Ebderhl
Government spent $5.7 billion more than it collected in revenue. We were
accumulating debt at the rate of.nearly $200 million a day. At thé end of
4Cb*ll
•: - 2 n
the fiscal year, June 3^* 1944, this means a debt of about $200 billion,
on which the interest'-¿barges will be close to $4 billion a year.
There is no escape from
They provide weapons for our
more; if we had no increased
to win the war as; completely
these expenditures. They are war expenditures.
fighting forces. If we could, we would spend
revenue possibilities, we would still spend
and as quickly as possible.
But ^the very emergency which makes us spend provides the stuff of
debt avoidance. In 1933 citizens had cash income after taxes of $44
billion; in the glorious year 1929, they had $80 billion. In the current
fiscal year 1944 they will have $126 billion, far above the prosperity we
thought^ we had in the peak year of the Twenties. The way out of debt ac
cumulation is plain to nearly every eye..
I t was plain to the Treasury on October 4, 1943, when the Secretary
of the Treasury proposed to the House Ways and Means pommittee an addi
tional tax program of $10,5 billion which he described on November•29th
as needed to safeguard tile financial and economic future of this country
during and after the war.»
This program might have bed&
4 $ inadequate, but it could
hardly be^ fairly condemned as too drastic.- W e faced a period in which
consumer income after taxes, $12& billion, exceeded by $36 billion the
amount required to buy the $90 billion of available consumer goods and
services at present prices. Our people would have $36 billion which would
not be spent. The $10,5 billion program would have appropriated to government^use in^ wartime — in the most critical .period in our history -- less
than one—third of the excess* It would have permitted us to save over
5 times as much as the $5 billion we were able to save in liquid forms in
1940, the highest amount ever saved in any year in the prewar decade.
Our people are financially prosperous. In the period from
January 1, 1940, to June 30, 1943, they accumulated $55 billion of savings,
after^paying^increased taxes, In ’1943 they spent nearly twice as much for
clothing as in 1939* They spent more than twice as much on restaurant
meals and drinks. They spent nearly three times as much on jewelry, I do
not mean to imply that every American is Jiving in a paradise of silk shirts
juicy steaks, and corona-coronas, though I cannot help recalling the aphorism
of your distinguished neighbor who said:. ‘»What this country needs is a good
five—cent cigar1».
&
With all tnis spending the American people have saved more than ever
before, They have ^accumulated in the last 3 1/2 years liquid savings of
more tnan $55 billion of which fully half is in increased currency and bank
accounts. Is it not clear that they could afford to pay-$10.5 billion of
additional taxes? I, for one, be3.ieve they would have been willing, if not
glad, to do so.
.
t. ,
. ,
v .
If I am right,^little need be said about the bill soon to be debated
in the Senate. As it passed the House, it was expected to raise $2,1
billion in a full year of operation. The cancellation of the automatic
|<T'
-5r
rise in Social Security taxes m i l reduce prospective receipts by $1.4
billion* That means that'the Senate bill m i l raise only .$876 million.
This is without allowance, however, for revenue losses..„and increases in
expenditures resulting from the Finance Committee renegotiation amendments
which open the door to war profiteering. If these.amendments stand, it
m i l be years before we know precise financial effects; but. it is possible
that they will put the bill in the red*..In short, what started.out to be
a revenue bill is now in large part: a.‘measure to-; appropriate public funds
for "relief" of war profiteers, and others*I wonder what returning soldiers and sailors and marines will think
of this tax measure — a statute passed by the people at home which says:
We did not want to surrender to the. Government a third of our war-made
prosperity while you were fighting the enemy in mountain, jungle, desert
and on the sea. We preferred to pass on the load to the future when you
who fought would also be required to pay.
:
Inflation Test
One might understand a refusal to be taxed, if it meant more .pur
chasing power in the pockets and bank accounts of taxpayers. .Against
the big loss of participation in the war effort there would be the small,
'immediate gain of increased wealth* From a narrow,.selfish.viewpoint
such an attitude might make sense* But. the ..grim fact is that as a people
we gain nothing by refusing to pay taxes* On the contrary, we stand to
lose a great deal. Inflation very well may take what we do not pay to the
tax collector. And more.
• I sometimes suspect that many of us are passive about inflation because
we have heard so much about it. For two years the economists have been
warning us that inflation would soon engulf us, yet so far we are only kneedeep in it* Vie forget that it has stayed within bounds because of the steps
we have taken to prevent rising prices. The danger is that we are ©notionally Weary of hearing the word "inflation” at the; very time it is most
threatening. You remember the fable of the shepherd boy. who assuaged his
loneliness by crying, "Wolf, Wolf," to the villagers,. When.the wolf actu
ally came, he lost his flock because the people refused to believe him.
I cannot cover the subject of inflation in a short evening address.
It comes from a sudden and enormous; increase of money among a people
without a corresponding increase of things to buy. It ends in prices that
take away the buying power of savings as well as income. You may have
seen the picture of "Joe’s Diner" in Harry Scherman’s pamphlet on inflation.
A returning soldier is sitting on a stool in front of the counter with his
hand reaching into his pocket for money. His uplifted face is directed at
a sign to which the waiter is pointing. The sign lists prices: coffee,
50 cents; coffee, with cream, 75 cents; hamburger, $1; hamburger, with
french fried potatoes, $1.50* The title of the picture is a question:
"Shall we let him come home to this?"
4 *"
He may very well come home to such prices
and we at home may pay
such prices — unless we face the economic facts that meet every qualified
eye. Without reduction, pressure of abundant income will be too much for
our existing price structure. Price and Wage ceilings, and rationing have
held the lina fairly well so far* No one knows the ultimate breaking point
of these direct control devices, but we do know that they are now threatened
More than ever they need the help of additional takes which reduce spending
power. If they do not get this he3„p* and other help that is being asked,
our soldiers and sailors and marines may return to 50 cent coffee and $1
hamburgers«
The arithmetic of inflation is simple. In 1939 consumers had $11 to
spend upon every $10 of goods. In 1940 they had $11.10; in 1941, $11.80;
in 1942, $13.30; in the first half of 1943, $13*80. The rate promises to
be about $14 for the fiscal year 1944 as cob1
,pared with $11 in 1939. In
total terms the Nation has $126 billion of spending power this fiscal
year
after existing taxes — against $90 billion of available goods.
The excess of $36 billion, plus accumulated savings of $55 billion, make
a total of over $90 billion nervous dollars, which threaten our price
structure with collapse.
Neither the House nor the Senate bill attempts to cope with this
dangerous situation. Any pretense that the bill will appreciably diminish
inflationary pressure is what Justice Holmes called "little more than
a fiction intended to beautify what is disagreeable to the sufferers".
A‘$2 billion tax bill is hardly a gesture of inflation prevention. It
indicates that the Congress either does not see the inflation clouds on
the horizon, or that it does nob choose to batten down the hatches against
them.
Simplification Test
Before examining the new tax bill in the
meet the popular demand for simplification, I
made two speeches in favor of simplifying our
third attempt, I am reminded of Fit the First
Hunting of the Snark":
light of its failure to
shall confess that I have
tax laws. In this, my
in Lewis Carroll’s "The
"...Just the place for a Snarki I have said it tYdce:
That alone should encourage the crew.
Just the place for a Snarki I have said it thrice;
What I tell you three times is true."
I hope that what I shall say may be true of itself and not by virtue of
reiteration. I hope it was true the first time I said it.
The desirability of simplifying our tax laws is so obvious that
I shall not labor it here* One set of figures is enough. In 1932 exemp
tions and national income were at such leve3-s that less than two million
returns were filed with the Bureau,of Internal Revenue. Time and the war
will raise this figure to 44 million for 1944.
In this distinguished group of Indiana attorneys I should like to
draw one item from my personal experience in the tax’field. When I was
in your position I was interested in the problems- of thé few clients I had.
Their problems were in the field of estate and gift taxés, corporaté re~
organizations, valuation, trusts# I was intensely concerned with the
complication of our tax laws in this territory. It -seéned unjustifiable.
I still believe it is into3„erable, and I shall leave no stone unturned in
my effort to make these provisions of the statute simpler andeasier for
the^taxpayers who are most affected by them to understand.' That is a long
uphill job if we would do it well# As Mr. Justice Jackson said in the
recent Dobson^case: ”No other branch of the law touches' human activities
at so many points. It can never be made simple, but we can try to avoid
making it needlessly complex.”
But I must confess to a shiit of interest since I have been with the
Treasury Department. Our immediate problem today is simplification for
the masses of taxpayers. If the income tax - the bulwark of our tax
system - is to succeed, we must find a way of making the tax understandable
to 50 million taxpayers who cannot employ lawyers and accountants. We must
tackle^the job in full realization tnat these millions are not concerned
with what the statute and the regulations and the court decisions say. To
them-the income tax return and the instructions on that return are the
whole story. It is logical, then, that simplification should begin at
that level.
It was at that level that the Treasury began its current campaign
against income tax complexity. A group of legal and research experts
joined by several specialists in the layman’s point of view, gathered*
around the conference table last summer to simplify individual income tax
returns. They introduced a number of new features into the returns to be
filed next March, and made some progress .in modifying the traditional form
of the income tax return in the''interest of simplification.
I am^frank to predict, however, that taxpayers will not call the
results simple. Time^and again the move for simplification■has run against
a stone wall.^ The primary obstructions this year were the Victory tax and
the cancellation feature involved in the transition to a pay-as-you-go
system. Fortunately, the hurdle of cancellation will be behind us when we
draft the return forms for 1945.
In this group I need not elaborate upon the complications of the
Victory tax. I need only remind you, first, that, thè Victory tax has in
troduced a separate concept of taxable income; second, that it uses an
exemption different from the regular income tax exemption; third, that it
requires an entirely separate tax computation; and fourth, that it recog
nizes. iamily status only through a complicated credit. This credit was
labeled a postwar credit, but was made available currently on such easy
terms^that the word ”postwar” became a misnomer. Congress, recognizing
this infirmity, eliminated the postwar aspects of the credit and made it
simply a current credit. The Treasury recommended this change and would
- 6 -
go even further. It would like to see the rest of this noble experiment
given a decent burial. In contemplatios of its death, the logical move
; would be to shift the burden of the Victory tax to the regular income tax
structure. To that end the Treasury has proposed that.-the.Victory tax be
eliminated and that with a reduction of exemptions andfdependency credits
its burden be absorbed into the net income tax scale.
The tax bill, as passed by the House, would repeal the Victory tax, an
essential step if we. are to. achieve simplification. However, instead of
integrating it with the regular income tax, it sets up a separate minimum
tax. In other words, it replaces an additional tax with an alternative tax.
If this- minimum tax were to become law, the taxpayer would be confronted
with two alternative taxes, each with different rates and each with .an en
tirely different set of exemptions. The relationships between the minimum
.tax and the regular tax are so complex and elusive that many husbands and
wives would be forced to go through a lengthy series of alternative com
putations to determine their lowest possible tax, liability. All in all,
the Treasury concluded, that the minimum tax ’’cure11 prescribed in the House
bill is worse than the Victory tax 51disease.11
Fortunately, the defects of the iR&nimnm tax plan in the House bill
were so patent that the Senate Finance Committee refused to accept it.
Unfortunately, the Committee was unwilling to abandon the Victory tax,
although it did effect some simplification by changing its rate to a flat
3 percent for every taxpayer regardless of marital or dependency status.
You may wonder why the House, with its minimum tax, and the Senate
Finance Committee, with its modified Victory tax, are straining every
legislative muscle to keep a separate income tax in existence. The crux
of the matter is the 9 million taxpayers at the bottom of the tax scale
who are now paying the Victory tax, but would be relieved from any tax on
income under the Treasury proposal# To clear away the smoke screen with
which this issue has been confused, I should like to explain briefly why
the Treasury felt it desirable to relieve these taxpayers from Federal taxes
on income.
The absorption of the Victory tax would not result in a reduction of
the total tax burden; of the 9 million, taxpayers. As a consequence of the
excise tax ihcreases proposed by the Treasury, they would pay practically
as much under the Treasury proposals as under present law.
It is important to identify the 9 million taxpayers who would be
relieved of future Federal taxes on income. They are exclusively heads of
families earning less than the exemptions proposed by the Treasury, that is,
$1,100 per year plus $300 for each dependent. The only reason why they are
now taxable is that their income exceeds the flat $624 Victory tax exemp
tion which applies to every income recipient regardless of his family
obligations.
If the 9 million taxpayers who are the center of the controversy could
be kept on the rolls without undue complexity and if the proportion of their
contributions to total revenue were substantial, some justification could be
- 7 -
found for their retention as income-tax payers. But these conditions
simply cannot be met. To extend the regular income tax downward to en
compass these 9 million taxpayers-would subject- them to crushing and
inequitable burdens. ,The alternative, represented by the Victory tax and
substitutes devised by the Congressional tax committees, imposes’ distressing
complexities on 50 million taxpayers without contributing* substantially to
income tax revenues. Even the pretty label nVictory tax11 cannot conceal the
unfortunate complexity of a dual income tax system. The label on the cover
cannot change the nature of the contents — it is a PandoraVs box of troubles
no matter what we call it.
'
4'
Although the Treasury1s proposals as a whole would not’sacrifice
revenue from the 9 million taxpayers, there would be a loss in income tax
revenue from this group. At present, the 9 million taxpayers in question
are paying about $275 million in Victory taxes. Under the House bill, they
would pay $161 million and under thfe Senate Finance Committee version of
the bill, they would pay slightly more than $275 million. In other words,
to collect less, perhaps much less, than $300 million from the 9 million
taxpayers at the bottom of the income scale, the 1943 Revenue Bill would
complicate the collection of $>17.billion from 50 million taxpayers through
out the scale. I repeat» what I stated to the Senate Finance Committee
several w e e k s ago in analyzing the House bill: ”It seems utterly unreason
able to erect a mountain of complexity for such a molehill of revenue.”
Renegotiation
‘
*
»
Believe it or not, I have yet tp reach the worst feature of the.1943
Revenue Bill* I have protested that the bill does.not raise sufficient
revenue. I have declared that it almost completely ignores the. threat of
inflation# I have said that it refuses to millions of-taxpayers the basic
simplification that they deserve. These are tax criticisms'of the bill:
they are deficiencies rather than positive faults. My fourth count against
the bill, particularly the Senate Finance Committee version, is that it
makes a dead letter of the provisions of the '‘renegotiation” statute designed
to prevent exorbitant profits on war contracts.
ViFhen'the Government began making contracts'for war supplies in'1940,
the big question was how to hold down profits. Everyone remembered the
•profiteering and'inflation of the last war. Then we had relied on the ex
cess profits tax to curb profits. We relied in vain. War business built
many fortunes. For twenty years after the 1918 Armistice-the country talked
about'taking the profit out of war. Perhaps some of you recall the Republican
and Democratic party platform pledges.of 1924./ Both declared that in event
of a war in which citizens were drafted, all other resources should likewise
be drafted. Yes, -while..public memory was still green, we were solidly against
lush war profits.■’
The law on renegotiation of w a r 'contracts was passed in April, 1942.
This new kind of war profit legislation was a response to the Government
and business criticism of rigid profit limitations based on an allowable
profit upon a low and arbitrary'percentage of sales. The law was made
flexible so that justice could be done in individual cases. Yet we hear
much criticism now that the renegotiation statute tits no standards. It
can be made plain and rigid by recourse to the old arbitrary limitation
expedient. But the chief sufferers would be the business men who complain
of its vagueness.
'
The law directed'the war procurement agencies, principally the War
Department, Navy Department, and Maritime Commission, to require renego
tiation of the contract price whenever a contract yielded excessive profits.
It also directed them to eliminate inordinate profits by reductions in the
contract price.
The assignment was known tq be hard, 'In fact, the task of renego
tiating with the tens of thousands of contractors and' subcontractors en
gaged- in war production was gargantuan. The departments organized for
their work. They set up Price Adjustment Boards, They recruited personnel
largely from business, law and accounting.
To date the total amount reclaimed from excessive prices on war con
tracts by renegotiation is well over $5 billion* The $5 billion does not
represent net savings. Without renegotiation, the greater part of this
figure would have been collected; in excess profits taxes. Renegotiation,
however, has saved at least $1—1/2 billion that would not have been touched
by taxes. If the Price Adjustment Boards are not impeded in their work,
they will probably save the Goverm»ent as much again in the days to come.
I should like to tell you dramatically how the renegotiation provisions
of the pending Revenue Act are but an invitation to repeat the mistakes of
the First World Vfar, are but'a preface to bitter charges of war profiteering.
But good drama, of necessity, distorts some of the facts. So ishall
sacrifice histrionics on the altar of accuracy.
The bill contains a provision permitting contractors to reopen in
the courts all ’’closed” renegotiation cases, that is, cases vihich have
resulted in voluntary agreement between the Government and the war con
tractor, There can be no valid objection to a procedure which protects
contractors in their right to a fair determination of the facts and to
adequate judicial review of‘decisions of administrative agencies. However,
this principle can have no application to those cases in which agreements
have been reached. Attempts to make it applicable to them fall wide of the
mark. The adoption of this provision will mean that.over 8,000 cases,, in
volving over $5 billion of refunds and price reductions, may be reopened
and interminably litigated.
Another provision restricts the application of the Act by making it
apply only to contracts or subcontracts for ’’components” of articles actu
ally delivered to the Government under prime contracts. It exempts from
renegotiation a large group of subcontractors who have admittedly made
excessive profits. To make matters worse, it is made retroactive, requiring
the Government to refund millions already recovered from these companies.
- 9 -
A mandatory exemption for "standard commercial articles'1 exempts the
profits — however excessive they may be ?
— from the sale of such articles
frpm renegotiation. The record shows that exhorbitant profits are being
earned on a large scale by concerns that produce standard commercial
articles* As a matter of fact, contractors making standard commercial
articles hold a more advantageous position than other war contractors*
Since they are making their peacetime products, they have had and they will
have fewer conversion problems. Apart from the merits of this exemption,
there will be interminable debate as to what contracts are subject to the
Act.
.
Still another provision requires the renegotiating agencies to take
estimated taxes into account for the purpose of determining excessive
profits* This is an anomaly in a measure that is concerned with the es
tablishment of sound prices. It fundamentally changes the character of
the renegotiation process from a re-pricing procedure to a super excessprofits tax. It shifts the war contractors war tax burdens to the Govern
ment. More precisely, it transfers the war contractor's war tax load from
his own shoulders to those of other taxpayers, generally.
.? ■■
Finally, the Senate Finance Committee bill contains a provision
requiring the renegotiating agencies to include as a cost in the deter
mination of excess profits carry-becks of unused excess-profits creditsand operating losses, as well as amortization recomputations.. This pro
vision makes it impossible to conclude a renegotiation agreement within
any reasonable time. I do not believe the business man wants to add this
element of uncertainty to the many others that beset him in these chaotic
times.
„
It is no exaggeration to say that these amendments emasculate the
statute. Their adoption would make it worse than nothing; it would leave
a facade of war profit control with no reality behind it. "Business Week,"
in its December 18, 1943* issue cited the Senate Finance Committee's "very
scientific demolition job" on the renegotiation law. "The Committee," it
said, "shrewdly avoided voting for outright repeal, knowing Congress would
find that hard to take in an election year. Instead, it is trying to get
the same result by trimmimg down the scope of the act and by curtailing
the authority of the Price Adjustment Boards."
In this connection, I should like to commend to you the.minority
report of the Senate Finance Committee. It elaborates on some of the
points I have made and discusses in detail and with great ibrce the major
defects in the bill recommended by the majority of the Committee.
Under the Committee amendments we should have renegotiation in name,
but not in fact, — an unworkable, discriminatory statute that makes manybusiness men vuj.nerable to the charge of war profiteering and recaptures
only a small amount of excessive war ..profits from one segment of industry.
I doubt if the business men who have urged these changes truly re
present business. I am very sure that they are not doing industry any
service. I cannot believe that most business men really desire extortionate
-
10
-
war profits and a whirlind of postwar scandal. Let me predict, with
Secretary Morgenthau, that if these provisions are enacted into law, ’’they
will come back to plague not only the Congress but the war goods manufac
turers who get temporary gain from them.” It is interesting to compare
the Secretary’s words with a recent statement made by Mr. Charles E. Yiilson,
executive vice-chairman of the War Production Board. Mr. Wilson said:
’’This above all is a time when the industrial leaders of America owe it to
their country and to themselves.....to avoid the temptation of sacrificing
enduring values for temporary gains.*..”
Conclusion
In closing, I should like to stress that distinction between transient
gain and permanent value. The two are often in contrast. The choice lies
before us on the tax front and renegotiation front. As the war moves on
toward victory we shall have to make many choices between these alternatives.
The immediate gain will be tempting. The lasting value will seem ephemeral.
’’Present joys are more to flesh and blood
Than a dull prospect of distant good.”
My hope is that we will have the spirit, the imagination, and the
courage, to resist the pressures of apparent present interests and to make
our choices in terms of the enduring interests of the future.
o 0 o
t/-£> - / V
FOR OOffiDUXB BELEASB,
Jamuarr-^. 1944.
f
o
She Bureau of Customs announced today preliminary figures showing the
quantities of eoffee authorized for entry for consumption under the quotas
for the 1 2 months commencing October 1 , 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
follows:
:
Country of Production :
:
Qaota Quantity
(Pounds) 1 /
:
Authorized for entry
•-----for consumption____________
1 As of_(Bate) : (Founds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
H Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,353,183,480
458,336,340
29,100,720
11,640,288
17,460,432
21,825,540
87,302,160
77,844,426
40,013»490
2,910,072
69,114,210
38,373» 208
3,637,590
61,111,512
Bee, 25, 1943
tt
a
H
tt
227,489,812
129,112,880
2,089,886
2,197,675
2,680,802
11,113,864
940,653
6,300,739
3,184,358
1,069,714
12,575,410
555,632
439,297
8,776,906
II
1,991,309
0
n
n
a
«
n
a
a
h
Non-signatory Countries:
51,653»778
1/
Quotas as established by action of the Inter**American Coffee Board on
March 1 1 , 1943,
-oOo*
TREASURÏ DEPARTMENT
Washington
EOE IMMEDIATE RELEASE
Wednesday. January 5. 1944.
Press Service
No. 40-12
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for■ consumption under the quotas
for the 12 months commencing October 1, 1943» provided for in the Inter.American Coffee Agreement, proclaimed by the President on April 15, 1941, as
follows*
~T
M ;
Country of production ;
?
:
Authorized for entry
Quota Quantity ?
for consumption
(Pounds) 1/ ? As of (Date)
: (Pounds)
Signatory Countries?
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
1/
1,353,183,480
458,336„340
29,100,720
11,640,288
17,460,432
21,825,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Dec. 25, 1943
it
1!
it
it
it
it
it
ti
i
1?
It
ir
n
it
227,489,812
129,112,880
2,089,886
2,197,675
2,680,802
11,113,864
940,653
6,300,739
3,184,358
1,069,714
12,575,410
555,632
439,297
8,776,906
1,991,309
Quotas as established hy action of the Inter-American Cpffee Board on
March 11, 1943.
- 0O 0-
a
January *4, 19*4*4
■ w \ (, '1
STiTCTORY DEBT UMITATIOH
"AS 0? DECIDER 31. lffiT"
Section 21 of the Second Liberty Bond Act, as amended, provided that tide
face amount of obligations issued under authority of that Act, »shall not exceed
in the aggregate $210 ,000,000,000 outstanding at any one time*»
dfoe following table shows the faee amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be
outstanding at any one time
Outstanding as of December 3 1 ,
Interest-bearing:
Bonds Treasury
Savings (Maturity
value)*
Depositary
, Adjusted Service
$210, 000, 000,000
I9U3 :
$67,9*4*4,*415,000
33,856,250,325
^>6,157,250
___ 719,305,107
Treasury notes
Certificates of
Indebtedness
Treasury Bills
(Maturity value)
$102 , 926 , 127,682
26,960,936,225
27,8*45,870,000
13,072.182,000
67.878,988,225
$170*805*115!907
Maturied obligations on
whleh interest has ceased
Bearing no interest
D.S, Savings stamps
Excess profits tax refund bonds
19*4,115,325
203,06*4,261
11,*400
-
203,075.661
Pace amount of obligations
issuable under above authority
171,202,306.893
$
38.797,693,167
Becpncllement with Daily Statement of the Phi ted States Treasury
December 31, 19*43
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act,
Deduct, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
Add other publle debt obligations outstanding but not
subject to the statutory limitation:
Interest-bearing (Pre-War, etc)
$195,9*42,720
Matured obligations on which
interest has ceased
7 ,930 ,6*45
Bearing no interest
96*4,568,036
Total gross debt outstanding as of December 31, I9U3
♦Approximate maturity value. Principal amount (current
redemption value) according to preliminary public debt
statement $27,362,781,02*4
Mt/r'j
$171,202,306,893
- J,U93,U69.301
16^,708,837.992
1.168.MUi.ijpi
$165.877.278.<W3
J anuary 5, 1944
STATUT O H DEBT LIMITATION
AS OF DECEMBER 31. 1943
Section 21 of the Second liberty Bond Act, as amended, provided that the
face amount of obligations issued under authority of that Act, H shall' not exceed
in the aggregate $210,000,000,000 outstanding at any one time.”
The following table shows the face amount pf obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be
outstanding at any one time
$21Ö *000¡000,000
Outstanding as of December 31, 1943?
Interest-bearing*
Bonds $67,944,415,000
Treasury
Savings (Maturity
33,856,250,325
value)*
406,157,250
Depositary
7191305.107
Adjusted Service
Treasury notes
Certificates of
Indebtedness
Treasury Bills
(Maturity value)
$102,926,127,682
26,960,936,225
27.845.870.000
13.072.182.000
Matured obligations on
which interest has ceased
Bearing no interest
U. S. Savings stamps
Excess profits tax refund bonds
67.878.988.225
$1701805,115,907
194,115,325
203,064,261
11,400
203.075.661
Face amount of obligations
issuable under above authority
171.202.306,893
$ 38.797.693.107
Reconcilement with Daily Statement of the United States Treasury.
December 31. 1943
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act,
Deduct, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
$171,202,306,893
*
Add other public debt obligations outstanding but not
subject to the statutory limitation:.
Interest--bearing (Pre-War, etc)
$195,942,720
Matured obligations ©n which
interest has ceased
7,930,645
Bearing no interest
964,568,036
Total gross debt outstanding as of December 31, 1943
* Approximate maturity value. Principal amount (current
redemption value) according to preliminary public debt
statement $27,362,781,024
6,493,469,301
164,708,837,592
,1,»,1681.
ffiAt.
4.
01.
$165.877.278.993
is
FOR IMMEDIATE RELEASE,
January fr 1944,_____
The Bureau of Customs announced today that preliminary reports
from the collectors of customs showed that approximately 84 percent
of the tariff rate quota of 22*000,000 pounds of Cuban filler
tobacco* not specially provided for* unstemmed or stemmed (other
than cigarette leaf)* and scrap tobacco was filled by entries and
warehouse withdrawals presented on January 1, 1944« jjEn order to
maintain control of this tariff rate quota* the collectors of
customs have been instructed to require the deposit of estimated
duties on such imports on and after January 2» 1944, at the rates
in effect on August 24, 1934, pending fulfilment of the quota*
Upon receipt by the Bureau of Customs of completexreports
from customs officers for the period in which the quota may be
filled, the collectors of customs will be advised as to the par»
ticular entry or withdrawal, or portions thereof* coming within
the quota in order that any excessive duties may be refunded*
n
TREASURY DEPARTMENT
Washington
F O R IMMEDIATE. RELEASE,
Thursday, J a n u a r y 6, 1944»
P r ess S e r v i c e
No. 40-14
T h e B u r e a u of C u s t o m s a n n o u n c e d t o d a y that p r e l i m i
n a r y r e p o r t s f r o m t h e c ollectors
of customs
showed that
a p p r o x i m a t e l y 84 p e r c e n t of t h e t a r i f f r a t e q u o t a
22,000,000 pounds
p r o v i d e d for,
leaf),
of C u b a n f i l l e r tobacco,
u n s t e m m e d or s t e m m e d
a n d s c r a p t o b a c c o was
quota,
t he coll e c t o r s
r e q u i r e t h e deposit
fill e d by entries a n d w a r e
1934,
1944.
control of this t a r i f f r a t e
of customs h a v e bee n i n s t r u c t e d to
of est i m a t e d duties
on a n d , a f t e r J a n u a r y 3, 1944,
A u g u s t 24,
not specially
(other t h a n c i g a r e t t e
h o u s e w i t h d r a w a l s p r e s e n t e d on J a n u a r y 1,
In o r d e r to m a i n t a i n
of
on s u c h imports
at t he r a t e s
pending fulfilment
in effect on
of t h e quota.
U p o n re c e i p t by t h e B u r e a u of C u s t o m s
of co m p l e t e
r e p o r t s f r o m customs officers f o r t he p e r i o d in w h i c h t h e
q u o t a m a y be filled,
the collectors
of customs w i l l be a d
v i s e d as to t h e p a r t i c u l a r e n try or withdrawal,
thereof,
coming w i t h i n t h e q u o t a
duties m a y be refunded.
-oOo-
or po r t i o n s
in o r d e r that a n y e x c e s s i v e
- 3 for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be.obtained from any Federal Reserve Bank or Branch.
~ 4rQ w
... H
H
H
H
i
..........
w
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept, or reject any or
all tenders, in whole or in part, and his action in any such respect shall be final,
Subject to these reservations, tenders for $100,000 or less from any 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 Bank
in cash or other immediately available funds on
January^ 13» 1944
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
Hie
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, January 7j 1944
V d ~ /\
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1,000,000,000 , or thereabouts, of
91 -day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided.
The bills of this series will be dated
mature
April g . 19U
interest.
January 13» 1944
» and will
dS*
___ , when the face amount will be payable without
They will be issued in bearer form only, and in denominations of $1,000,
$5 , 000 , $>10,000, #100,000, #500,000, and #1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock
d
. m. , Eastern War time,
Monday, January 10, 1944
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 thah three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the printed forms and for
warded in the special envelopes which will be suoolied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers' in investment securi
ties.
Tenders from others must be accomoanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty pf payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
7
TREASURY DEPARTMENT
Washington
F O R RELEASE, M O R N I N G NEWS P A P E R S ,
Friday,, J a n u a r y - 7', 1944
' .l-6*-44
'■
~ —
The Secretary' of the Treasury, b y this p u b l i c .n o t i c e ,
invites tenders f or $1,000,000,.000, or thereabouts., ■.of 91-dayT r e a s u r y 1b i l l s , to be issued on -a.!,discount, basie. underv!Com
petitive* a n d f i x e d - p r i c e b i d d i n g .'as herei n a f t e r r provided. ■■ The
b i l l s of' this series will be .dated J a n u a r y 13^ r.l944->:a n d ■“w i l l “
m a t u r e A p r i l 13, 1944, w h e n ■the- face, a m o u n t will.; be- ¡payable • :
w i t h o u t •i n t e r e s t . T h e y w i l i ;She".issued in bearer'¡fom'ronlyi a n d
in d e n o m i n a t i o n s of $1,Q0Q, $5,000, $ 1 0 , 0 0 0 , ;$i<$0£000v '$500,000,
a n d $1,00(3,000 (ma t u r i t y value),. ;
- ■ •;
¡.■•■v ; h '•'■
' T e n d e r s w i l l be r e c e i v e d at Federal Reserve. 'Banks "and*
*
B r a n c h e s ' u p to the c l o s i n g hour, .two o ’c l ock p # m * v .'Eastern --War •;
time,' Monday, J a n u a r y 10,. 1944.
T e n d e r s .w i -11. no t tee .¡received
at. the T r e a s u r y D e p a r t m e n t , Washington..- E a c h t e n d e r mus’t be
for a h ' e v e n m u l t i p l e o f $1,000,, a n d the price, o f f e r e d m u s t be
e x p r e s s e d on the b a s i s of'. 1.00,. w i t h n o t .more-; than t h r e e - d e c i
mal s
e .g:., ■ 9 9 * 9 2 5 ’. F r a c t i o n s m a y n ot be u s e d >• vlt* dss u r g e d
that 'tenders' be m a d e on the- printed' foims a n d forwarded: in' the -'
special e n v e lopes w h i c h w i l l be s u p p l i e d b y Federal Reserve
B a n k s or B r a n c h e s on. a p p l i c a t i o n t h e r e f o r . •r
"■’T e n d e r s will' b e r e c e i v e d w i t h o u t ,deposit;' from: in.corporated:
banks and'trust" co m panies a n d - f r p ^ ' r esponsible a n d recognized' :
dealers in i n v e s t m e n t s e c u r i t i e s ’
. T e n d e r s f r o m others m u s t be
a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face a m o u n t of
T r e a s u r y bills a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
b y a n e x p ress g u a r a n t y of p a y m e n t b y an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y a f t e r the c l o sing hour, t e n ders w i l l be o p e n e d
at the Federal Reserve Banks a nd Branches, f o l l o w i n g w h i c h p u b
lic a n n o u n c e m e n t w i l l be m a d e b y the S e c r e t a r y o f the T r e a s u r y
of the a m o u n t a n d p r ice range of a c c e p t e d bids.
T h ose s u b m i t
ting tenders wil l be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n
thereof.
The S e c r e t a r y o f the T r e a s u r y e x p r e s s l y reserves the
right to a c c e p t or reject a n y or all tenders, in w h o l e or in
part, a nd his a c t i o n in a n y such respect shall be final.
Sub
ject to these r e s e r v ations, t e nders f o r $ 1 0 0 , 0 0 0 or l e s s f rom
a n y one b i d d e r at 9 9 * 9 0 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 wil l toe
a c c e p t e d in full.
P a y m e n t of a c c e p t e d tenders at the prices
o f f e r e d m u s t be m a d e or c o m p l e t e d at the F e d e r a l Reserve B a n k
in cash or o t h e r i m m e d i a t e l y a v a i l a b l e funds on J a n u a r y 13, 1944
The i n c o m e d e r i v e d fro m T r e a s u r y bills, w h e t h e r i n t erest or
gai n f r o m the sale or o t h e r d i s p o s i t i o n o f the bills, shall not
have a n y exemption, as such, a n d loss f r o m the sale or other
40-15
(Over)
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 shall not have a n y special t r e a t
ment, as such, u n d e r Federal- tax A c t s n o w or h e r e a f t e r enacted.
The h i l l s shall he subject to estate, inheritance, gift, or
o t h e r excise taxes, w h e t h e r Federal or State, h u t shaL 1 he
exempt from all t a x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n
cipal or i n t e r e s t t h e r e o f - b y a n y State, or a n y o f the p o s s e s s i o n s
of the U n i t e d States, or b y a n y l o cal taxi n g auth o r i t y .
For
p u r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
h i l l s are o r i g i n a l l y a o l d by' the U n i t e d States shall be c o n
s i d e r e d to be interest.
U n d e r S e c t i o n s 42 a n d 117 (a) (1) of
the Internal: Revenue Code, a s ■a m e n d e d b y S e c t i o n 115 o f the
Revenue A c t of 1941,, the a m o u n t of d i s c o u n t at w h i c h b i l l s
i s sued h e r e u n d e r are sold shall n ot be considered, to a c c r u e
u n t i l such b i l l s shall be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d
of, a n d such bills: are e x c l u d e d f r o m c o n s i d e r a t i o n - a s capital
assets.
A c c o r d i n g l y , t h e - o w n e r ' o f .T r e a s u r y b i l l s (other than
life i n s u rance c o m p a n i e s ) •i s s u e d h e r e u n d e r need- include in his
i n come tax r e t u r n o n l y the d i f f e r e n c e b e t w e e n the p r i c e p a i d
for s uch bills, ■w h e t h e r on o r i g i n a l issue o r on sub s e q u e n t p u r
chase, a n d the a m o u n t actually- r e c e i v e d e i t h e r u p o n sale or
r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r for* w h i c h the
r e t u r n is made, as o r d i n a r y g a i n or loss.
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* 418, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a n d g o v e r n
the c o n d i t i o n s o f t h e i r issue.
Copies o f the c i r c u l a r m a y be
o b t a i n e d f r o m a n y Federal Reserve B a n k or Branch.
/
p a r t ic u la r ly , ar© b eing checked.
Many samples a re to o bad, in th e op in ion o f Treasury ch em ists, even
to be g iv en th e d e sig n a tio n o f " Im itation W h is^ * * The d e s c r ip tio n
Colored D i s t i l l e d S p ir its " has been d ev ise d fo r some such b ever
ages whose c h ie f cla im to resem blance t o whisîçjF i s th e p resen ce
o f a l i t t l e burnt wood or o th er fla v o rin g *
la b e ll in g changes a ls o have been fo rced in some in sta n o e s on
dom estic b o t t le r s o f blended licju o rs, and c lo s e su p e r v isio n i s
being m aintained in t h i s f i e l d .
C rim inal or c i v i l a c tio n s have been in s t it u t e d a g a in s t
a lle g e d Black Market o p erators in a number o f major c i t i e s through
out th e country in r e c e n t weeks as th e Treasury a tta ck ed th e prob
lem through r e g u la tio n s governing f a i r tra d e p r a c tic e s and o th e r
Ih te m a l
S ecreta ry Morgenthau announced today th a t th e Treasury
h en cefo rth as*y re q u ir e d a ily re p o r ts o f e ^ . w h o lesa le tr a n sa c
t io n s in d i s t i l l e d s p i r i t s as a means o f in t e n s if y in g th e Treasury
d riv e a g a in st Black Market c o n d itio n s in th e liq u o r in d u str y .
The d a ily r e p o r ts , to be f i l e d w ith D is t r ic t S u p ervisors o f
th e A lcoh ol Tax U nit o f th e Bureau o f In te r n a l Revenue, w i l l
enable f i e l d o f f i c e r s to make immediate in v e s t ig a t io n s as t o th e
sou rce and d is p o s it io n o f liq u o r moving in to consum ption.
Karnes
and a d d resses o f a l l p a r t ie s in v o lv ed in such tr a n s a c tio n s must
be rep o rted , w ith amounts and kinds o f s p i r i t s tr a n s fe r r e d .
By en ab lin g th e Treasury to put tr a c e r s promptly upon every
consignment o f liq u o r where circu m stan ces appear unusual or
s u s p ic io u s , th e new r e g u la tio n s should co n tr ib u te s u b s t a n t ia lly
t o drying up so u rces o f ta x -p a id
spirits
now en terin g th e Black
Market, Mr. Morgenthau s a id .
R eports p r e v io u sly have been made t o th e U nit m onthly.
Stew art B erk sh ire, head o f th e A lcoh ol Tax U n it, sa id th a t
' I'.-,;
th e forms which im p orters, w h o le sa le r s, b o t t le r s and r e c t if y e r s
must f i l e d a ily a re known to th e tra d e as th e Records 52 s e r ie s *
The amendments to e x is tin g r e g u la tio n s are s e t fo r th in Treasury
D ec isio n s 5 3 1 4 -through
5523.
D i s t r i c t S u p ervisors may w aive th e requirem ents fo r d a ily
f i l i n g in s p e c i f i c c a s e s .
I^r. B erkshire s a id th a t in a d d itio n to s c r u t in is in g c lo s e ly
a l l tr a n sa c tio n s in th e w h o lesa le liq u o r f i e l d , th e U nit i s
if
ta k in g p reca u tio n s t o se e th a t in c r e a sin g q u a n titie s o f in f e r io r
s p i r i t s coming on th e market are r e le a s e d to th e p u b lic o n ly
'I ê J tîÆ -- '
*
£ .
c% ;
undef* la b e ls th a t ad eq u ately d e sc r ib e them.
’
,(
- 3 liquors, and close supervision is being maintained
in this field.
Criminal or civil actions have been instituted
against alleged Black Market operators in a number
of ma^or cities throughout the country in recent
weeks as the Treasury attacked the problem through
regulations governing fair trade practices and other
Internal Revenue laws, as well as under provisions
of the Emergency Price Control Act.
-
2
-
bottlers and rectifyers must file daily are known
to the trade as the Records 52 series.
The amend
ments to existing regulations are set forth in
Treasury Decisions 5314 through 5323.
District Supervisors may waive the requirements
for daily filing in specific cases.
Mr.
said that in addition to scrutin
izing closely all transactions in the wholesale
liquor field, the Unit is taking precautions to see
that increasing quantities of inferior spirits
coming on the market are released to the public only
under labels that adequately describe them.
Certain types of imports, particularly, are
being checked.
Many samples are too bad, in the
opinion of Treasury chemists, even to be given the
designation of "Imitation Whiskey."
The description
"Colored Distilled Spirits" has been devised for
some such beverages whose chief claim to resemblance
to whiskey is the presence of a little burnt wood
or other flavoring.
Labelling changes also have been forced in
some instances on domestic bottlers of blended
Y 0 - /6
Secretary Morgenthau announced today that the
Treasury henceforth will require daily reports of
wholesale transactions in distilled spirits as a
means of intensifying the Treasury’s drive against
Black Market conditions in the liquor industry.
The daily reports, to be filed with District
Supervisors of the Alcohol Tax Unit of the Bureau
of Internal Revenue, will enable field officers to
make immediate investigations as to the source and
disposition of liquor moving into consumption.
Names and addresses of all parties involved in such
transactions must be reported, with amounts and
kinds of spirits transferred.
By enabling the Treasury to put tracers promptly
upon every consignment of liquor where circumstances
appear unusual or suspicious, the new regulations
should contribute substantially to drying up sources
of tax-paid spirits now entering the Black Market,
Mr. Morgenthau said.
Reports previously have been made to the Unit
mon
é te m .rC
of
Alcohol-
said that the forms which importers, wholesalers,
T R E A S U R Y ;DEPÂ RTMENT
■Wa shington
FOR I M M E D I A T E RELEASE,
Friday, J a n uary 7, 1944.
Press S e r v i c e
No. 40-16
S e c r e t a r y Morgentha.u a n n o u n c e d t o day that the T r e a s u r y
h e n c e f o r t h w i l l r e q u i r e d a l l y r e ports of w h o l e s a l e t ransactions
in d i s t i l l e d spirits as a m e a n s of i n t e n s i f y i n g the T r e a s u r y ’s
drive a g a i n s t B l a c k Market- c o n d i t i o n s in the l i q u o r industry.
The d a i l y reports, to b e filed w i t h D i s t r i c t S u p e r v i s o r s 1
of the A l c o h o l T a x U n i t of the B u r e a u of Internal Revenue,
will enable f i e l d o f f icers to m a k e i m m e diate i n v e s t i g a t i o n s
as to the source a n d d i s p o s i t i o n of l i q u o r m o v i n g into c o n
sumption..
N a m e s and a d d r e s s e s of a l l p a r t i e s i n v olved in such
transactions m u s t be reported, w i t h a m o u n t s a n d k i n d s of
spirits transferred.
B y en a b l i n g the T r e a s u r y to put tracers p r o m p t l y u p o n
every c o n s i g n m e n t of liquor w h e r e c i r c u m s t a n c e s a p p e a r u n u s u a l
or suspicious, the n e w r e g u l a t i o n s s h o u l d c o n t r i b u t e s u b
s t a n t i a l l y to d r y i n g up s o u rces of t a x - p a i d spirits n o w e n t e r
ing the B l a c k Market, Mr. M o r g e n t h a u said.
Reports p r e v i o u s l y have b e e n m a d e
to the U n i t monthly..
Robert E. Hannegan, C o m m i s s i o n e r of Internal Revenue,
said that the forms w h i c h importers, w h o l e s a l e r s , b o t t l e r s a n d
r e c t ifyers m ust file d a i l y are k n o w n to the trade as the
Records 52 series.
The a m e n d m e n t s to ex i s t i n g r e g u l a t i o n s are
set f o r t h in T r e a s u r y D e c i s i o n s 5514 t h r o u g h 5325.
. District Supervisors ma y waive
f i l i n g in s p e cific cases.
the r e q u i r e m e n t s
for d a i l y
Mr. H a n n e g a n said that i n . a d d i t i o n to s c r u t i n i z i n g cl o s e l y
a l l ^ t r a n s a c t i o n s in t h e ' w h o l e s a l e l i q u o r field, the U n i t is
taking p r e c a u t i o n s to see that i n c r e a s i n g q u a n t i t i e s o f i n
ferior spirits coming on the m a r k e t a r e r e l e a s e d to the p u b l i c
onl y u n d e r l a b e l s that a d e q u a t e l y d e s c r i b e them.
C e r t a i n types of imports, p a r t i c u l a r l y , are b e i n g checked.
M a n y samples are too bad, in the o p inion of T r e a s u r y chemists,
even to be g i v e n the d e s i g n a t i o n of "I m i t a t i o n W h i s k e y . "
The
d e s c r i p t i o n " C o l o r e d D i s t i l l e d S p i r i t s ” has b e e n d e v i s e d for
some s u c h b e v e r a g e s w h o s e chief claim to r e s e m b l a n c e to
w h i s k e y is the p r e s e n c e of a litt l e b u r n t w o o d or o t h e r f l a v o r
ing.
2
L a b e l l i n g changes also h ave b e e n f o r c e d in some instances
on do m e s t i c b o t t l e r s of b l e n d e d liquors, a n d close s u p e r
v i s i o n is b e i n g m a i n t a i n e d in this field*
Crimi n a l or civil a c t i o n s h a v e b e e n i n s t i t u t e d a g a i n s t
a l l e g e d E l a c k M a r k e t o p e r a t o r s in a n u m b e r of m a j o r cities
thr o u g h o u t the c o u n t r y in recent w e e k s as the T r e a s u r y at^
tacked the p r o b l e m t h rough r e g u l a t i o n s g o v e r n i n g fair trade
p r a c t i c e s a n d o t h e r Internal R e v enue laws, as w e l l as u n d e r
p r o v i s i o n s of the E m e r g e n c y Price C o n t r o l Act.
q
Qo
front bear a heavy burden of r e s p o n s ib ility .
the Attack I s no mere slogan today.
Let's all Bach
It's the rallying ory of
an aroused and determined people; the measure of our patriot
ism and the seal of our faith.
In Indiana th a t oan p o s s ib ly do s o , w i l l aoon ha d is p la y in g
— and d is p la y in g proudly — tha 4 th War Loan S h ie ld , which
raada ¡*wa Bought Extra. Bond« In tha 4th War Loan*.
V*/"
l e e , even
ay
vhara I t aay »«an «be temporary a a o r lfle a to show t h i s badge
o f honor.
And we a r t eo n fld a n t tha aaaa w i l l ha trua In «wary S ta t e ,
town, and eoaau n lty o f A m r l e a .
S ot o n ly w ill A aerleans inwaat
a t la a a t 1100 In e x tr a War Bond« during th e ooain g 4 th War
Loan, and In «any oaaaa $200, 1300, $400 and acre — but they
w i l l traaaura t h e ir War Bond« and h old onto than unlaaa eo a p a lled
to do o th e rw ise by unferaaan paraonal m isfortun e beyond t h e ir
c o n t r o l.
T h is, to o , la aa I t eheuld b e.
Thera la no m istakin g tha taaper o f th e American p eop le
tod ay.
There I s n ' t an A aerlean who I s n ' t co n sc io u s o f tha
f a s t th a t g r e a t, h la to r y -a a k in g , and, y ea , tra g ed y -a sk in g even ta
a r t Juat around th e corn er! th a t there*a a f e e l i n g o f e l e c t r i c
urgency In th e a tr j th a t so * e th in g wa'we been wanting a lo n g
t l * . to happen la about to cob. o f f .
All o f u . on the home-
and in peace; but the hopes and dreams of every American for the
of our loved ones at the fighting fronts# for our ohildren here at home# for our own security today and tomorrow.
Purchasing War Bonds does not represent merely an Investment of
a few dollars; it represents all that we have been as & nation#
all that we are, and all that we hope to be*
Let’s use our
money more intelligently# therefore# by investing In victory
and planning for a better day*
In the financing of the war Payr'“* M r *
a leading role*
In the 4th War Loan
even more important than before*
I has played
role will be
Here in Indiana plant quotas
are being set for every kind of store# office# shop# garage#
hotel as well as for the great industrial plants ~~ whether
engaged in war work or not * This Is as it should be.
for
winning this war and paying the costs of winning this war Is
everybody’s Job and everybody’s responsibility.
W# are confident that every place of business, every home
V icto ry I s t h i s war w i l l talc# ev ery th in g w e’ve get*
It
w i l l not come from d oing Ju st one ta s k , however important* and
doing i t w e ll.
V ictory w i l l depend on our a b i l i t y to do many
th in g s , and do them a l l a t on ce.
Y es, we have th e taek o f pro
ducing fo r v ic to r y — and th a t you are alread y doing*
The
record o f American p ro d u ctiv e achievem ent in t h i s war la le g
endary and nothing I
ty can add or d e tr a c t from i t .
But th ere i s another Job a l l Americans h ave, and i t ’ s a
Job they cannot evad e.
I t ’ s the Job o f p ro v id in g th e f in a n c ia l
einews to meet the sta g g e r in g c o s ts o f the war.
I f we are to
win t h is war, and the peace as w e ll, then every income earner
in America must supply h is Government in g r e a te r measure w ith
th e funds i t needs to p ro secu te th e war to a s u c c e s s f u l con
c lu s io n .
This i s a r e s p o n s ib ilit y no American c i t i z e n can
eva d e| i t i s a r e s p o n s i b il it y no p a t r io t i c c i t i z e n would dream
o f evad in g.
What i s a t sta k e i s not on ly our n a tio n ’ s w e lfa r e in war
Individual* invested 118 million dollars in War Bond* *
exactly 100$ of Indiana1* quota for Individual*«
Bot only that, but Indiana la on* o f the outstanding load
er* In the entire Nation in Payroll Savings participation, with
over 814 thousand workers buying bond* regularly every payday
out of their earning*.
Payroll Saving* is the backbone of the entire War financing
program, and at the present time throughout America nearly 2?
million workers each month are taking 430 million dollars out
America is proud of its workers.
M i t » Joh.
work*
Labor has never done a
Our progress in the war la marked by your handi
You*ve built the ship* and the tanks and the planes*
V
j
Xou'v* ssfie th. bomba and th. a h . H a and tha gun.,
"*a# ***•■ *'•11 *nd in tr e * .n d o u i q u a n tity .
ï o u *t .
And It* a beeauae o f
you*- e f f o r t a In f a c t o r y , fo r g o , and flald th a t our f ig h t in g men
h a * . b..n «qulpp«! w ith f ig h t in g t o o l . .
WUM
of their pay and putting it into War Bond*.
f e ^ f y y ftp.e 'W ^Indienapolis Speech
«January
.
Cnee «ore Indiana * and the e n t ir e Nation • prepares to
f a c t the g ig a n tic ta sk o f r a is in g b i l l i o n « o f f ig h t in g d o lla r «
in a sh o rt p eriod o f tin # *
On t h is the
» 1 o f the 4 th War Loan
1 am g la d to hare the op p ortu n ity o f thanking th e p eop le o f
Indiana fo r t h e ir sp len d id coo p era tio n in the p a s t, and-of
-
v o ic in g my co n fid en ce th a t In d ia n a 's quota« both f o r In d ivid *
« a ls and nonbanking so u rces will be met * and su rp assed .
I p a r t ic u la r ly want to thank my fe llo w speakers who are
w ith me here today * Governor S o h rlek er, Honorary Chairman o f
the Indiana War Finance Committee; Eugene P u llia m , S ta te War
Finance Chairman; William Green, o f th e American F ederation
o f Labor; «James Carey, o f the Congre«« o f I n d u s tr ia l Organ!*
n atio n ; and Tom Cashen, o f th e Hallway Brotherhood*
A ll have
labored t i r e l e s s l y In the War Finance e ffo r t*
In th e September d r iv e , Indiana went over th e top by mak
in g UQfi o f h er o v e r - a ll quota*
(The fo llo w in g address by Ted R. Gamble, N a tio n a l
D ir e c to r o f th e War Finance D iv isio n o f th e Treasury
Department b efo re combined lab or groups of Indiana
a t th e C laypool H o tel, In d id n a p o lis, Indiana, i s
scheduled fo r d e liv e r y a t 12?30 P» m ., Eastern War
Time, Monday, January 1 0 , / and i s fo r r e le a s e a t
th a t t i m e . )
in 2nd para, 5th line, 1st vd pit make i t a it read? Organizations,
also, can you take out underlininge, mostly om pg 2
thank you
f
TREASURY DEPARTMENT
Washington
(The following address by Ted R. Gamble, National
Director of the War Finance Division of the Treasury
Department, before combined labor groups of Indiana
at the Claypool Hotel, Indianapolis, Indiana, is
scheduled for delivery at 12;30 p. m.. Eastern War
Time, Monday„ January 10. 1944. and is for release
at that time .)
Once more Indiana - and the entire Nation - prepares to face the
gigantic task of raising billions of fighting dollars in a short period
of time. On this,the eve of the 4-th War Loan, I am glad to have the oppor
tunity of thanking the people of Indiana for their splendid cooperation in
the past, and of voicing my confidence that Indiana's quotas both for
individuals and nonbanking sources will be met - and surpassed.
I particularly want to thank my fellow speakers who are with me here
today - Governor Schricker, Honorary Chairman of the Indiana War Finance
Committee; Eugene Pulliam, State War Finance Chairmans William Green, of
the American Federation of Labor; James Carey, of the Congress of Industrial
Organizations; and Tom Cashen, of the Railway Brotherhood. All have labored
tirelessly in the liar Finance effort.
In the September drive, Indiana went over the top by making 118$ of
her over-all quota.
Individuals invested 118 million dollars in War Bonds *t* exactly 100^
of Indiana’s quota for individuals.
Not only that, but Indiana is one of the outstanding leaders in the
entire Nation in Payroll Savings participation, with over 814 thousand
workers buying bonds regularly every payday out of their earnings.
Payroll Savings is the backbone of the entire War Financing program,
and at the present time throughout America nearly 27 million workers each
month are taking 430 million dollars out of their pay and putting it into
War Bonds.
America is proud of its workers. Labor has never done a bigger job.
Our progress in the war is marked by your handiwork. You've built the ships
and the tanks and the planes. ^You've made the bombs and the shells and the
guns. You've made them well and in tremendous quantity. And it's because
of your efforts in factory, forge, and field that our fighting men have
been equipped with fighting tools.
40«-17
Victory in this war will take everything we ’ve got. It will not come
from doing just one task, however important, and doing it well. Victory
will depend on our ability to do many things, and do them all at once.
Yes, we have the task of producing for victory — and that you are already
doing. The record of American productive achievement in this war is
legendary and nothing I might say can add or detract, from it.
But there is another job all Americans have, and it’s a job they can
not evade. It’s the job of providing the financial sinews to meet the
staggering costs of the war. If we are to win this war, and the peace as
well, then every income earner in America must supply his Government in
greater measure with the funds it needs to prosecute the war to a success
ful conclusion. This is a responsibility no American citizen can evade;
it is a responsibility no patriotic citizen would dream of evading.
What is at stake is not only our nation’s welfare in war and in
peaces but the hopes and dreads of every American for the safety of our
loved ones at the fighting fronts, for our children here at home, for our
own security today and tomorrow* Purchasing War1Bonds does not repre
sent merely an investment of a few dollars; it represents all that we have
been as a nation, all that we are, and all that we hope to be. Let’s use
our money more intelligently, therefore, by Investing in victory and plan
ning for a better day.
In the financing of the war Payroll Savings has played a leading role.
In the 4-th War Loan Drive its role will be even more Important than before.
Here in Indiana plant quotas are being set for every kind of store, office,
shop, garage, hotel as well as for the great industrial plants — whether
engaged in war work or n ot. This is as it should be . For winning this
war and paying the costs of winning this war is everybody’s job and every
body’s responsibility.
We are confident that every place of business, every home in Indiana
that can possibly do so, m i l soon be displaying — • and displaying proudly the 4-th War Loan Shield, which reads ifWe Bought Extra Bonds in the 4-th War
Loan” , Yes, even where it may mean a temporary sacrifice to show this
badge of honor.
And we are confident the same will be true in every State, town, and
community of America. Not only m i l Americans invest at least $100 in
extra War Bonds during the coming 4th War Loan, and in many cases $200,
$300, $400 and more — but they will treasure their War Bonds and hold onto
them unless compelled to do otherwise by unforeseen personal misfortune
beyond their control. This, too, is as it should be.
.
There is no mistaking the temper of the American people today. There
isn’t an American who isn’t conscious of the fact that great, history-making
and, yes, tragedy-making events are just around the. corner; that there’s
- 3a fee.ling of electric urgency in the air; that something we've been want
ing a long time to happen is about to come off. All of us on the homefront bear a heavy burden of responsibility. Let's all Back the Attack
is no mere slogan today. It's the rallying cry of an aroused and deter
mined people; the measure of our patriotism and the seal of our faith.
~-o0o—
>
FOR IMMEDIATE RELEASE,
f
W
$t i94s*
The Bureau of Cue toms announced today final figures for the
Imports of coffee entered for consumption during the quota year
beginning October 1» 1942« and ending September 30» 1943*
(In Founds)______
Country of Production
:
: Revised Quotas
:
i
:
i
'
Imports for
Consumption
Signatory Cpunty j ^ S
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
2,172,359f753
736,840,277
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
898,190,672
635,008,488
40,646,788
13,738,619
25,795,221
21,501,790
120,338,784
107,194,018
56,720,592
4,278,817
65,078,793
25,736,937
358,878
67,501,486
75,969,017
35,335*085
-oOo-
TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE,
Saturday, January 8« 1944»
Press Service
No, 40-18
The Bureau of Customs announced today final figures for the
imports of coffee entered for consumption during the quota year be
ginning October 1, 1943» and ending September 30, 1943f
(In Pounds)
Country of Production
:
Revised Quotas
j
-
»jrww* .. -■■■■"—......... . ■ »1«|i,w
!
Imports for
Consumption
...... . ."
Signatory Countries;
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Gnat emala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Hoursignatory Countries?
35,041,335
140,776,585
124,978,598
64,236,136
4,278,467
111,292,661
45,818,819
5,839,588
90,021,490
898,190,672
635,008,488
40,646,788
13,738,619
25,795,221
21,501,790
120,338,784
107,194,018
56,720,592
4,278,817
65,078,793
25,736,937
358,878
67,501,486
75,969,017
35,335,085
.3,172,369,753
735., 840,277
46,718,031
!M$3,451
Series E bonds than in the higher denominations. This, the
ytid, is accounted for by two factors:
buy bonds generally acquire only the $25 denomination,
and these persons are the ones first hit by emergencies
that make it necessary for them to cash the bonds they have
acquired; further, many persons who make substantial purchases
of E bonds specify delivery in small denominations, so that
if a redemption necessity arises, they will not have to cash in
a bond for a larger sum than they require»
r.nrnmgnting--.iii tlu<. vmlHiii|il. i un r e p o r t, se c r e ta r y Mui-KtiiiLli.au
aaxoU—
uW€br^ond-red.emp4ti5iiS“~,
are not fol-l-ewing any-farticular !> '
1ions naturally increase with increases in bonds
outstanding^ but the occasional peaks such as
me
have
recently come as a result, in a vast majority of cases, of bond
holders having no other liquid reserves to meet extraordinary
or seasonal expenditures. This is why redemptions have been
highest during tax-payment months, at Christmas time, and
coincidental with the flu dpidemic. In this connection, it is
significant that redemptions follow the same pattern as savings
bank withdrawals^** 7^C
0O 0
MR. BELL
W e ’d like to get this out for
Sunday papers thereby jumping the
gun on the CWI which has a redemption
figure for Monday issues.
Smith has
approved.
The figures I understand §re
Tickton’s.
a t*
Mr. Shaeffer
Treasury Deparjgent
^^nia s.hington
„
Roil Release, Moxning^ewspapers)
Press Service
SundayT^Janua ry 9, Z9
Mo.
.-8~44
/
/t
7
Redemptions of Series £, F and G War Bonds up to December 31,
1943, amounted to only 7 percent of sales since these issues were
first offered to the .American public, it was disclosed at the
Treasury Department today. Sales, which began May 1, 1 9 4 1 , ^ ^ ^ ^
feSfeu $25,000,00.0,000 and redemptions, inclusive of
both cost and accrued interest,^#© $1,763,000,000.
A slightly higher redemption rate — 9.2 percent of sales —
was reported for the Series £ bonds alone. Sales of this
"people's bond" between May 1, 1941, and December 31, 1943,
were $17,500,000,000 and redemptions (cost plus accrued
interest) totaled $1,600,000,000.
About 91 percent of the proceeds of the Series £ sales
and 93 percent of the proceeds of the three series combined
remained
ixs:..-±hp
Trrasrcr-y; therefore, at the start of the new year/
for continued war duty as "fighting dollars."
Sales and redemption figures were reported on a cumulated
basis, the Treasury explained, because bonds turned in for
redemption in any one month consist of bauds sold in every one
of the previous months since the war securities were first
offered.
Redemptions are heavier in the lower denominations of
TREASURY DEPARTMENT
Washington
Press Service
FOR REIEASE J MORNING NEWSPAPERS
Sunday. January 9. 194A»
No. 40-19
1 8 44
-
-
Redemptions of Series E, F and G War Bonds up to December 31, 1943,
amounted to only 7 percent of sales since these issues were first offered
to the American public, it ?<ras disclosed at the Treasury Department today.
Sales, which began May 1, 1941, exceeded $25,000,000,000 and redemptions,
inclusive of both cost and accrued interest, were $1,763,000,000.
A slightly higher redemption rate — 9*2 percent of sales — was
reported for the Series E bonds alone. Sales of this »people's bond"
between May 1, 1941, and December 31, 1943, were $17,500,000,000 and re
demptions (cost plus accrued interest) totaled $1 ,60 0 ,000 ,0 0 0 .
About 91 percent of the proceeds of the Series E sales and 93 percent
of the ■proceeds of the three series combined remained invested, therefore,
at the start of the new year for continued war duty as "fighting dollars,»
Sales and redemption figures were reported on a cumulated basis, the
Treasury explained, because bonds turned in for redemption in any one month
consist of bonds sold in every one of the previous months since the war
securities were first offered.
Redemptions are heavier in the lower denominations of Series E bonds
than in the higher denominations. This, the Treasury said, is accounted
for by two factors* Persons of limited means who buy bonds generally ‘acquire
only the $25 denomination, and these persons are the ones first hit by
emergencies that make it necessary for them to cash the bonds they have
acquired^ further, many persons who make substantial purchases of E bonds
specify delivery in small denominations, so that if a redemption necessity
arises, they will not have to cash in a bond for a larger sum than they
require.
Redemptions naturally increase with increases in bonds outstanding,
the Treasury said, but the occasional peaks such as have been reached
recently come as a result, in a vast majority of cases, of bond holders
having no other liquid reserves to meet extraordinary or seasonal expendi
tures. This is why redemptions have been highest during tax-payment
months, at Christmas time, and coincidental with the flu epidemic. In
this connection, it is significant that redemptions follow the same pattern
as savings bank withdrawals, the Treasury report added.
-oOo-
It is often a search for a meaning that would have been intended
if an unanticipated situation had been presented when a bill was
drafted.
The courts may not say to the legislators
nWm see
what you are driving at, but you have not said it; therefore we
shall go on as before."
They must try to find the major premise
of the conclusion expressed in the statute, and then obey the
policy they see written in the law.
- 45 -
One struggles in m in for any verbal formula that will supply
a ready touchstone.
The standard set up by the statute is not
a rule of law; it is rather a way of life.
Life In all its
fullness must supply the answer to the riddle."
f »*, |f|§j t l
¡i §é
|§ |'
In our search for simplicity we meet again the perennial
problem of degree which permeates all legal activity*
Tax
statutes must be drawn so that they may be as easily understood
as possible*
But in the rush for simplicity they must preserve
their contact with the complexity of modern life; they must be
firmly rooted in our fast-moving underlying experience#
It is
not enough* that they be sufficiently comprehensive to reach the
old; they must also be sufficiently flexible to r each out to the
new#
For statutory interpretation is more than the discovery of
a pre-existing meaning in the mind of the legislator.
lords at best are “inexact tools“ and are often confronted by
the unexpected»
A recognition of the delusive exactness of
words is good reason for making a statutory scheme as sturdy as
possible; there must be agreement on fundamentals and an
assurance of consistency*
We need to recognise these truths, but we need also to
remember that some measure of interpretation and uncertainty must
always remain, for human ingenuity is unlimited in its power of
conception*
Mr. Justice Jackson has expressed doubt whether our
tax laws can he much simplified, for, to use his own words, “the
truth is that complexity is in our lives more indelibly than in
our laws.*
In Welch v. Helvering Mr. Justice Cardoza voiced much
the same doubt:
"Here, indeed, as so often in other branches of
the law, the decisive distinctions are those of degree and not
- 43 •
/ I have proposed several specific measures designed to achieve
simplification for the masses of taxpayers*
Indeed, it is hardly
an exaggeration to say that this type of simplification is
necessary if our income tax Is to survive*
I have also advocated
simplification of the provisions affecting the smaller number of
taxpayers represented by members of this group*
There are many
more of those provisions than I have been able to discuss this
evening*
But I cannot end without a word of warning*
fe may go so
far along the road to simplification, but no further*
Tax
statutes cannot be completely immunised from the ravages of
interpretation and uncertainty*
There is a growing awareness
among lawyers and others that legislative Intention needs to be
a dynamic concept and that administrative discretion has
a legitimate interest in clarifying areas of uncertainty where
interpretation may easily incline either way*
Although a frontal attack on the corporate tax may have
lit tils chance of success* there remains a method of blunt! ng
p m irirrnHTMnri " ' W
In 1^42 the Pui5lic utility industry
succeeded in reducing the effect!ye burden of the tax not by
working on the rate* but rather by attaining an adjustment in the
base.
The deduction of preferred dividends from surtax net income
of the utility companies is more than a straw in the wind*
Ihere
preferred dividends have led* common dividends may follow.
1 leave it to you whether businessmen iwlll be inclined to push
further along this path* hearing in mind, as they should* that it
leads directly hack to the undistributed profits tax of 1936.
Conclusion
I believe it is evident that I am in favor of simplification
of our tax laws.
- 41 Thus we entered the Second World *«ar with the corporation
incase tax still firmly established in the federal tax system.
With the increasing demands for revenue in 1941 and 1942, it was
inevitable that we should turn to this tax, as well as to the
indi^iduel income tax.
Combined normal tax and surtax rates
were raised to 31 percent in 1941 and to 40 percent in 1942.
In addition, Congress imposed an excess profits tax in 1940, with
rates now at the all time peak of 90 percent, and presently,
perhaps, to be 95 percent.
That, in brief, is the life history of the corporation income
tax.
For the duration, business can expect little relief from
this tax.
Business might well temper its postwar optimism with
a recollection that attempts to eliminate corporate income
taxation have in the past been singularly unsuccessful.
Jf.
Id 1936 an attempt was made to de-emphasize the taxation of
corporations as such; this attempt recognized the problem of
undistributed corporate profits as a tax-avoiding device,
fader
the plan proposed by the President in that year the undistributed
profits tax, designed to r eplace all other corporation taxes,
would have been an adjunct of the individual income tax.
Corporate
income would have been taxed only once, either as individual income
or as undistributed profits,
i s you know, the House followed the
recommendations of the President, but the Senate was reluctant to
relinquish the corporation tax, and the 1936 Act contained both
a tax on corporate income and one on undistributed profits.
Few
were satisfied with this compromise, and the undistributed profits
tax after a short period of invalidism died.
There are many in
business today who wish it had been a healthier child,
/
- 39 With the cessation of hostilities, when individual income taxes
were promptly lowered, no attempt was made to r ©store the pre-war
relationship between the individual and the corporation income tax
Corporation income tax rates were not reduced*
In fact, the
repeal of the excess-profits tax was made the occasion for
a compensatory 2-1/2 percent increase in the corporation income
tax from 10 percent to 12-1/2 percent*
Little consideration appears to have been given at the time
to the rationale of the corporation income tax or to the possible
effects of giving this tax a permanent place in the federal tax
system*
The belief that corporations as such possessed taxpaying
ability had by this time undoubtedly taken root in the minds of
many, but we embarked upon the taxation of corporate enterprise
not so much because we believed the corporation tax to be a good
¿ ir.
/
.
|Sj
W
%4
^ J\ r
BB§|¡ I
tax as because we had found it to be a productive one.
• 38 However, since this rate was the same as the normal tax
t
rate on individual incomes, and since dividends were not
subjected to the normal tax on individual incomes, the new
corporation income tax was not so much a tax on corporate
enterprise as a eollection-at-source tax on individuals.
Had it remained so, the problem which is now confronting us
might never have arisen.
But, as you all know, the
corporation income tax did not long remain a mere adjunct
of the individual Income tax.
Events abroad were bringing us
to the threshold of the First World War and to a series of
wartime tax bills in which the corporation income tax would
\
%
be given an independent status.
The Revenue Acts of 1917 and 1918 not only raised the
normal tax rate on corporations above the level of the normal
rate on individual incomes, but subjected corporations to an
excess-profits and war-profits tax at rates ranging from
30 to 80 percent.
- 37 The first chapter In the history of the corporation
income tax was written in 1909, largely as the outcome of
a threatened split in the Republican party on the issue of
the individual income tax.
The incipient revolt of the
western Republicans on this issue wes ultimately quieted by
the promise of President Taft to place an income tax amendment
before the states for ratification, and his offer of a 1 percent
excise tax on corporations measured by net income.
This
compromise legislation went on the premise that corporations
were proper subjects of taxation.
In the lorest of taxation
great oaks from little acorns grow.
With the ratification of the 16th amendment9 and the
■
f
{[
/
t r{ '
passage of the 1913 income tax law, the 1 percent excise
tax on corporations became in name what it ban been in
fact
a 1 percent income tax#
- s a
lt is a tax that without Much prodding can be depended upon
to bear a substantial part of our revenue burden.
Besides^
opinions conflict and the corporation tax is not universally”
regarded as bad.
In fact, it has many friends, especially
among persons who regard corporations not as organizations
of individual s\o ckholoers, but as entities possessing
individuality and taxpaying ability,
what should be done
about this tax will not be an easy question to resolve.
If the corporation income tax is truly a black sheep,
you may ask how it has been permitted to assume such an
important place in our Federal tax system.
M y vras it
enacted in the first place, and why has it been increasingly
relied upon with each passing decade?
To answer these
questions we must glance back at the circumstances which
surrounded the enactment and sub sequent development Ox the
tax on corporate income.
^
- 35 -
The complexities of business make it doubtful that the
corporation tax could ever be a simple tax, although the
averaging of income through the operation of carryforward and
carryback provisions would make a substantial contribution
towards simplification by reducing the importance of
depreciation rates and other annual adjustments in arriving
at taxable income*
Real simplification of our tax laws from
the point of view of the business man might well require the
repeal of the corporation income tax, which, of course, would
be a major tax change involving many important considerations
besides simplification*
Even if we wanted to banish this particular member of
our tax family, it would not be easy to do so*
J.n
the metaphorical sense, sheep are hardly ever altogether
|H
black.
fjlfy
■■ v ¿1! j|
/ %
The productivity of the corporation income tax offers
(Jr
at least partial compensation for its faults.
34 Even before the present war this tax was believed to be rough
on equity owners; it has frequently been blamed for frightening
potential venture capital into "safer" investment outlets.
For the moment we need not be greatly concerned since
normal investment outlets are closed for the duration.
But
with the opening up of investment opportunities after the war
the effeet of high corporation tax rates on the ability of
corporations to raise equity capital will pose a more serious
problem.
In addition to its effect on levels of investment
the corporation tax makes its contribution to the complexity
will be what should be done about the corporation income tax.
More than a century ago, Nicholas Francois Canard said:
"Every
old tax is good, every new tax is bad, but the new becomes
good in time.*
Most countries have at one time or another found
themselves saddled with taxes which do not conform to the
currently accepted pattern of a "good" tax.
let the bad tax
may be more easily ejected than the traditional black sheep*
A tax may not be good because it is old, but age and habit enable
us to tolerate in an old tax features to which we should violently
object in a new tax.
The path of tax reform is not one along
which movement can be swift.
It must be a slow, uphill climb.
Although there are blacker sheep in our tax fold —
the
declared-value excess-profits tax could easily qualify for
this distinction— , the tax which promises to give us the most
trouble after the war is the corporation income tax.
ill these difficulties derive from a failure to focus upon
objectives and to draw the appropriate lines of incidence.
The
time has passed when we could afford the luxury of sitting by
and watching our revenue system grow like Topsy• Any tinkering
within our present framework can only lead to further tinkering
and to more baffling judicial niceties and refinements.
Corporate Taxation
The simplification road is so long that we can traverse
it only a little farther this evening. We have paused for
a brief glance at the estate and gift taxes.
Before closing we
can do no more than pay passing respects to the corporate tax
problem.
Our federal tax system, like the traditional American
family, has its black sheep.
Our courts have for years been struggling with a grossly
inadequate and antiquated estate tax base.
By an adroit use
of trusts, estate tax can be suspended over several generations,
V
Faced with the constant specter of avoidance, it is small
wonder that the courts have heroically attempted to fashion
a transfer concept prepared to meet & variety of exigencies.
And judicial attempts to import clarity into legislation often
yield fine distinctions which lie beyond the discernment of
average mortal man.
Simultaneously the courts have sought to adapt the gift
tax to the needs of the estate tax, although this is frequently
impossible unless one is willing to sacrifice the interests of
the income tax.
On the other hand, the desire to assist the
income tax may seriously impair the estate tax#
Moreover, every transfer during life, up to a certain point,
tumbles out of the highest applicable estate tax brackets into
the lower gift tax brackets, and the earliest gifts may produce
the greatest inoome tax savings in yielding the lowest gift tax.
The gift tax has necessarily been caught in a whirlpool of
conflicting purposes and is therefore comparatively impotent
to fulfill its original function as a protective device.
It
certainly does not attain the objective of imposing "a tax which
Iflg
measurably approaches the estate tax which would have been
payable on the donor's death had the gifts not been made and the
property given had constituted his estate at death,
As
a "policeman tax" the gift tax has been a conspicuous failure.
Our present irrational framework is by no means confined
to the evils of rates and exemptions*
The gift tax was ostensibly designed to prevent the
avoidance of the estate tax in addition to the Income tax.
From
this point of view the most successful gift tax would he a tax
which so discouraged gifts that it yielded little revenue.
However, the drafters, it would seem, promptly made certain that
this objective would not he realized.
The gift tax rates were
so arranged that transfers during life to circumvent estate and
income taxes would actually he encouraged, with the Government
procuring its revenues at an earlier date.
While avoidance no
longer was tax-free, the price in gift tax m s sufficiently small
to make avoidance profitable.
The disparity in rate was apparently intended to stimulate
the transfer of wealth during life rather than at death.
This
fundamental break-down in tax theory is reflected not only by
the deliberate disparity in rates, but by double exemption® and
an annual gift tax exclusion.
- 2S
Estate and Gift Taxes
We may profit most tills evening if I concentrate on one or
two phases of this part of the vast simplification problem.
We might first choose the estate and gift taxes for the purpose.
In c onsidering these taxes I want to reiterate that this is
a narrow segment of our subject.
Very few people die with enough
wealth to bring estate tax problems to the Treasury.
In 1942,
19,884 estate tax returns were filed and total estate tax
collections for the calendar year amounted to only a little over
$370 million.
Very few people have sufficient surplus of
property to create gift tax problems*
This is not to say, however, that these are not important
taxes.
They may affect only a relatively few people, but they
affect them at a sensitive point.
They bring to the Congress,
a
the Bureau, and the courts a host of difficult questions.
• 27 It can never be made simple, but we can try to avoid making it
needlessly complex.”
In this territory there is so much unfinished business that
v
I can do little more than mention a few items.
Tax law relating
£
to trusts is in confusion.
Reorganisation tax law is a morass
of such transcendental metaphysics that exact meanings can be
discovered only by the hair-splitting theoreticians of
Von Jhering’s ”heaven of legal concepts.” The whole corporate
tax structure needs overhauling; we need better integration
between the personal and the corporate tax*
has to be coordinated with the tax law.
The bankruptcy act
Mr. John Maguire, who
is well known to all of you, is working for the Treasury on all
these problems.
from all of you.
We need all the help we can get from him and
X
Other Suggestions for Simplification
So far I have discussed simplification for the masses of
taxpayers*
That is the immediate job*
Moreover, it is our
most important job to make the income tax understandable to the
great mass of the 50 million taxpayers who cannot employ lawyers
and accountants*
Simplification should begin at that i%# l *
But simplification need not end there*
The business man
is entitled to as much certainty as is feasible*
and trusts need not be harassed with complexities*
Corporations
Individual
taxpayers employing lawyers and accountants deserve all the
clarity we can achieve.
Some newspaper comment to the contrary,
there is plenty of work for tax lawyers and accountants for many
years to come without benefit of needless complexity.
Mr, Justice Jackson said in the recent
case:
As
llRMlgft* Dobson
other branch of the law touches human activities
at so many points#
A good deal of additional «lapllfleatloa 1ft U i r e l u m e
li possible if changes are sad# in the lair to simplify the
concept of income#
With such changee# return« »Ight ho
reduced to very slnple etatesenta for pereons subject to
withholding of the full tax on wag#« and «alarl«« and having
no other Income*
This would mat# compile»«# easier and
would reduce taxpayer Irritation*
The Chang«« la the law
necessary for «xtroae «lnpllfioatlon of return« would
roduo« the fairness of the tax*
However* It «ay well he
that the simplicity gained would offset the egulty lost*
ft
1« doubtful whether it would he dc«lrahi« tat completely to
tllntn&te a etateaent or elnple return hy the taxpayer to
the Government*
Eeturns have a certain value both to the
Government and to the taxpayer*
They eerve as a has!« for
adjusting the over-collections end under-collection» which
are Inevitable in any withholding »ysteau
they c M r provide
a cross-check against enploye*^ reports! thus ellninatlnf
a possible source of tax evasion*
They also serve
m
*
V
direct contact between the taxpayer and his Government,
which has wholesons elvle valuel*
- 24
The relationships between the minimum tax and the regular
tax are so complex and elusive that many husbands and wives
should be forced to go through a lengthy series of alternative
km
computations to determine their lowest possible tax liability.
All in all, the Treasury concluded that the minimum tax
"cure" prescribed in the House bill was worse than the
Victory tax "disease."
Fortunately, the defects of the minimum tax plan in
the House bill were so patent that the Senate Finance Committee
refused to accept it.
Ilnfortunately, the Committee was
unwilling to abandon the Victory tax, although it did effect
some simplification by changing its present differential
rate to a flat 3 percent for every taxpayer regardless of
ff| |
marital/or dependency status.
However, the Committee’s plan
fails to eliminate the double tax computation, the double income
base, and the separate exemption of the Victory tax.
~ 23 The logical move in the direction of simplification would
have been to shift the burden of the Victory tax to the
|i§ .1
regular income tax structure*
To that end the Treasury
proposed that the Victory tax be eliminated and that with
a reduction of exemptions and dependency credits, its burden
be absorbed into the net income tax scale.
The tax bill, as passed by the House, would repeal the
Victory tax.
However, instead of integrating it with the
regular income tax, it sets up a separate minimum tax.
In
other words, it replaces an additional tax with an alternative
tax.
For the simplification riddle this is an inept solution.
If the minimum tax were to become law, the taxpayer
would be confronted with two alternative taxes, each with
different rates and each with an entirely different set of
exemptions.
22
-
À greater number of declarations would have been eliminated
if, in addition, we could have raised the present requirement
relating to outside income, other than salaries, from $100
to a somewhat higher figure.
I have not exhausted the list of Treasury defeats on
the simplification front*
of the Victory tax.
simplification.
this is true.
Its major reverse was the retention
This tax is a stalwart barrier to
I want to explain in some detail exactly why
First, the Victory tax introduces a separate
concept of taxable income; second, it uses an exemption
different from the regular income tax exemption; third, it
requires an entirely separate tax computation; and fourth, it
recognizes family status only through a complicated credit.
Investigation of this proposal reveals further interesting
data*
At present the first $2,000 bracket covers about
34,000,000 taxpayers.
The remaining 23 brackets cover less
than 7,000,000 taxpayers.
The lesson of these figure® is
that our rate structure lacks refinement for the great majority
of taxpayers.
Thirty
million taxpayers have the same rate
of tax on their income without any progression.
The progression
in our tax rates is limited to the remaining seven million
taxpayers.
However, the moment we try to provide better
progression, we have to face the necessity for graduated
withholding.
As I have said, this could have been accomplished.
The by-product of graduated withholding —
which would have
enabled us to achieve the desirable objective of refining the
rate structure for the great majority of taxpayers — would
have been the elimination of many quarterly declarations for
persons receiving salaries above the present first bracket of surtax*
20
*
You Bay even be astonished attea I tell you that employers
responded enthusiastically to the suggestion.
Employer
gro'tps w ith whom the Treasury discussed withholding problems
signified the desirability of graduated w ithholding from the
standpoint of their relationships with employees.
At the time
for filing the first quarterly declarations last September,
several large employers reported that requests from employees
for information as to total amounts of wage and of withholding
over the year, as well as for assistance in the computations
and the preparation of the form, resulted in significant
additional burdens for their tax and accounting staffs.
The question arose whether graduated withholding would unduly
complicate the preparation of payrolls.
Careful study, as
well as discussions with employer groups, indicates that
little or no extra burden upon employers would result«
The method for accomplishing this result would have been
to set up & series of withholding rates eppliceble to
gross wages, as a substitute for the present precise rates*
This series of withholding rates could have been expressed
in tables based on the status of the taxpayer*
There could
also have been tables calculating the amounts to be withheld,
as at present*
Any objections to the inaccuracies resulting from
the wide brackets in the present-law tables could have
been minimised by providing substantially narrower brackets
over the ranges of wage within which most employees fall*
You may be surprised that the suggestion for graduated
• \*V' ” '■m \
"'Yo
withholding was made largely in the interest of simplification
It could have been done without m y windfall to the
owners of partially exempt Federal securities by allowing, in
lieu of the present credit against net income, a credit
against the tax of 6 percent of partially exempt tax interest,
or of net income after the exemption, whichever was lower*
This would have given partially tax-exempt bondholders the
exact benefit they possess today and would have limited extra
computations to the few taxpayers who own tax exempt bonds*
Another unaccepted Treasury recommendation was graduated
withholding.
The Treasury proposed that collection at the
source be made to apply to the taxpayer’s full liability
rather than merely to his partial liability uncer the normal
tax and the first bracket of surtax.
- 17 This would have reduced co mutation work*
You are well aware of
the defects of the
present system*
The earned income credit and
the issuance prior
to 1941 of partially exempt federal bonds are
the only remaining
excuses for two concepts of net income — one
for normal tax purposes and the other for surtax purposes*
With
the earned income credit removed, only one reason remains for
submitting to the difficulty Involved in expressing the rates of
tax*
The obvious solution was to integrate rates into one schedule
and limit ourselves to one concept of net income*
Our rate for
the first $2,000 of net income could then have been 19 percent ~
6 percent present normal tax plus 13 percent, the first surtax
bracket*
For the second $2,000, the rate could have been 22
percent — 6 percent plus 16 percent.
This simplification could
have been extended throughout the rate structure*
-
16
This disallowance was recommended by the treasury because at
present the allowance of deductions is haphazard and depends
entirely on legal liability for the tax rather than upon the
incidence of the tax*
The average taxpayer finds it difficult to
determine which excises he can deduct; he also finds it too
burdensome to ie ep accurate records of the taxes he pays*
Consequently, in many instances the deduction is little better than
guess work*
From the administrative point of view, the disallowance
of this deduction will reduce the amount of work involved in
checking individual income tax returns.
Treasury Suggestions for Income Tax Simplification
But other Treasury suggestions looking toward simplification
have not been adopted*
The Treasury recommended the consolidation
of the normal tax and the surtax
- 15 Th$ first gives effect to the President’s r e coramendation of
August 1, 1943, by removing numerous excise tax exemptions
conferred by existing law with respect to articles sold to the
Federal Government*
The President proposed this step "for the
purpose of saving the manpower utilized both inside and outside
the Government for the administration of these operations."
The
termination of this exemption will not operate to the disadvantage
of the Government inasmuch as the expenditure incurred by the
Government in the payment of taxes will be recovered in the
collection of the taxes*
The second measure repeals the provision in the existing law
which allows the deduction of Federal excises in computing net
income for income tax purposes*
- 14 This step wag recommended by the treasury as early as 1942 on the
grounds that failure to distinguish between different sources of
income below $3,000 deprived the credit of its chief significance.
As you well know, the credit has complicated both the return and
the computation of the tax,
the Senate version of the bill repeals the so-called second
windfall provision of the Current Tax Payment Act of 1943.
This
provision, designed to cut down tax forgiveness when an individual's
income was very substantially increased in the war years 1942 and
1943 over what it was in pre-war years, would apply in comparatively
few cases.
Two simplification measures relating to excises are included
in both the House and Senate Bills.
• 13
Return§ must be prepared by the Bureau of Internal Revenue#
But
the Bureau is not a free agent; it works under a statute which it
did not pass*
This year the statute is necessarily complicated
because we are changing over to a system of paying~as~we~go*
No
statute could entirely eliminate complexity during this shift from
one payment method to another.
But I cannot claim that the
transition process accounts for all complexities*
Simplicity has
other statutory impediments which must be recognized if they are
to be overcome.
Simplification in the 1943 Revenue Bill
Let me give credit where credit is due by saying that the
pending Revenue Bill accomplishes some si iplification*
eliminates the earned income credit.
It
«* 1 2 *
(1)
March and June, 1943, installment® based upon their
1942 returnsi
(2)
Victory tax withholding in the first half of 1943;
(3)
Income tax withholding in the second half of 1943;
and
'v - ||
(4)
September and December, 1943, installments based upon
estimated 1943 income,
it* the same time they will have to compute and pay one half of
the uncancelled fraction of the 1942 tax.
They m i l also have
to file a declaration of estimated tax on 1944 income, and make
the first quarterly tax payment for 1944,
There should be a bull
market in aspirin.
In the dark days of March, 1944, I hope you will remember
that income tax returns are but the outward and visible sign of
the legislation which makes them what they are.
One newspaper expressed its reaction in no uncertain terms%
wIt must be seen to be believed*
The form and Its junior sister
Form 1040A, are so complicated as to defy description in
a newspaper during a paper shortage**
I am afraid this statement
is but a preface to a long series of bitter complaints.
The returns due next March will have a new understructure*
For the first tine taxpayers will have paid some or all of
their tax liability in advance*
under four different headings;
They will have made payments
Paying taxes gives citizens a very real sense of participation in
government*
But they must participate with the feeling of
partners, not arithmetical slaves*
They cannot derive satisfaction
from contact with their government when they are befuddled by
& maze of complexities*
Income Tax he turn Forms
In less than two months millions of taxpayers will face the
prospect of filing their returns for 1943*
About 12 million
taxpayers will face the necessity of declaring their 1944 income^
The old jokes about the Ides of larch will have a grim flavor
then*
Last month the Bureau of Internal Revenue released the
1944 versions of Form 1040 and the short form 1040A*
• 9 *
It is unfair for the Government to demand from them the extra
time and energy required to master unnecessary complexities.
Taxpayer Attitude
I want to repeat directly what I have said by implication —
that taxpayer attitude is a most important consideration*
The
American people have shown a remarkable capacity to pay high taxes.
This may be due to & developing civic sense which tends to make
higher taxes have less and less the aspect of *hurt.* But they
have also shown a streak of independence, a capacity for protest
against taxes they did not want to pay.
You cannot impose an
unwelcome tax by forcibly feeding it to 50 million taxpayers.
may persuade, but you cannot coerce.
You
Taxpayers are, after all, to
some degree in control of their destinies.
Most lawyers and accountants have lost touch with the hostsly
thoughts of Jos Doaks who frowns aver his record keeping, who
cannot multiply by decimals, who finds mere words unbelievably
tricky — which they are ***, and who would like a tax law which
reads like a pill advertisement»
To reduce tax laws to the
limits of Joe Doaks* mental processes is unreasonable, you say.
It Is reaching for the moon*
That may be true.
But Joe deserves
every consideration, since he Is the man who files and pays.
Simplicity is a part of fairness.
Regardless of whether we
should have a government of laws or of men, laws are made for
men.
Men must live by them.
They must understand them.
For
understanding is the first step toward orderly compliance.
paying taxes men and women are giving part of their time and
energy to the government*
In
.
7 <*
Levels of Simplification
Just as simplification itself is not a thing apart* so none
of the levels of simplification is separate from any other.
statute conditions the return,
that may be put on a small piece
of return paper conditions the statute.
go beyond the statute.
The
The regulations cannot
And* of course, rulings of a less formal
character than regulations are, to use Judge Frank’s metaphor,
merely reflectors, serving as administrative moons.
I wonder if there is any group as little qualified to pass
upon questions of tax slmplifloation as a group of tax lawyers
and accountants.
them.
True, they know taxes#
They are steeped in
They have an enormous vested interest in that knowledge.
I k
They have progressed miles ahead of W ff many taxpayers who do
not know the sim p le st things, such as how to add or subtract
a blank item on the return.
But initial assumptions have long been overrun \by a continuing
flood of litigation as the courts and the Treasury Department
have struggled valiantly with the seemingly crystal-clear phrase,
11taken
out by the decedent«8 In the 1942 Act Congress has wisely
overhauled this provision, and while it is no longer confined to
five lines, it succeeds in conveying Its underlying message*
If we pursued the Socratic line, the next question might
bar What difference does the language of the statute and
regulations make?
Nobody reads it but tax lawyers and accountants.
Fortunately they are still a small minority of our 5o million
taxpayers, though as complications are piled like Pelion on Ossa,
the tax lawyers and accountants may very well become bigger and
better taxpayers*
But shouldn’t we get to the real point?
It is the return
. > v:
form and the instructions which must guide the man in the street*
'#T
V“
~f -
\
Shouldn’t we tackle the problem at that level?
• § *
A short "simple® phrase in the statute may leave much confusion,
misunderstanding and litigation, whereas a long, complicated
section of the statute may accurately and meticulously cover
most of the cases apt to arise*
The Socratic method *ould soon develop a challenge to the
s im p lic ity of simple languages
Is there such a thing as
perfectly plain language? Some of our worst tax troubles have
centered about the few uses in the statute of layman1s language*
You are all familiar with the famous insurance section of the
estate tax statute, first enacted in 1919, which subjected to
estate tax the proceeds of life insurance "taken out by the
decedent*®
This provision consisted of merely five lines and
undoubtedly the drafters thought they had done a fine job*
Some people would direct us back to statutory structure and its
underlying concepts.
beginning —
A statute, of course, is always merely the
a point of departure.
In time, it is enriched by
the live content of concrete factual patterns as administrative
interpretations and judicial decisions add their commentary on
legislative intention.
It m y be compared to a diminutive
charter of government awaiting the impact of specific events*
But beginnings are important, for while one does not end with the
words of the statute, wone certainly begins there.w
Other people say the language of the statute should be less
legal:
le should abolish verbosity and make the statute read as
chastely as the Ten Commandments.
This is easier to promise than
i
to deliver.
While I hold no brief for verbosity, it Is safe to
say that legislative reticence on a subject may often do more
harm than good
Kinds of Simplification
To begin with, there is more than one kind of simplification
if''
There is simplification of concept.
language*
There is simplification of
There Is simplification of what the taxpayer must do*
Then, too, simplification may exist at many different levels.
The very word means different things to different people*
An obvious level of simplification is the language of the
statute*
Then there are the regulations, and the less formal
administrative rulings of the Commissioner of Internal Revenue.
The next level is the return and the instructions accompanying
the return,
le might even go back of the return to the initial
operations of the taxpayer, to the books and records he must
keep in order to file his return.
These considerations are pointers which indicate the
complexity of the subject of simplification.
Om does w#ll to take with gp.it as he starts m t on the long
journey toward simplification tfas message gives to Everyman* in
the old play* by Knowledge* the sister of £ood 0t#4ti
*1 «ill go with thee* and be thy gold*»
In thy most need to go by thy side**
3ur difficulties with simplification begin with its place
in the pattern of taxation*
It is not a thing in mono*
does not stand alone like a pyramid cm the desert*
, ....-- .
-1
.■
It
To mix
'■ .
3'
metaphors, it is bat one strand of a thread which is woven into
an intricate design,
"e must have revenae.
fairly as possible from many aillians of people,
unifora rules.
get it as
le must apply
Simplicity must be weighed against all of these
competing considerations.
The question always is:
*# cannot have it without a price.
«re we willing to pay the price in
revenue, equity and uniformity?
PROBLEMS INVOLVED IN AN APPROACH TO SIMPLIFICATION
OF FEDERAL TAX LAWS
The title of my talk this evening bespeaks the wise modesty
of your chairman*
simplification.
objective.
It is stated in terms of "an approach" to
There is a hint here of the difficulty of the
We do not attain, we approach.
for the word "approach".
I am ready to settle
But I sometimes wonder if we havenfi
confused our directions, —
if we do not get farther away from,
instead of nearer to, our goal each year that goes by.
A spirit of humility is not amiss in dealing with the
problem of simplification.
and no one has conquered.
The subject is vast.
Many have tried
The job is interminable.
octfipus-like in all directions.
It spreads
TREASURY DEPARTMENT
Washington
(The following address by Randolph B. Paul,
General Counsel of the Treasury, before the
Second Annual Institute on Federal Taxation
at the Rhode Island College of Education
Building, Providence, Rhode Island, is
scheduled for delivery at 8 p, m*, Eastern
War Time, Friday, January,.IWÌ.T S T T s
for release at that tiraeTT 2
TREASURY DEPARTMENT
Washington
(The following address by Randolph E, Paul.,
General Counsel of the Treasury,, before the
Second Annual Institute on Federal Taxation,
at the Rhode Island College of Education
Building, Providence, Rhode Island, is
scheduled for delivery at 8 p. m... Eastern
War Time, Friday. January 14.,, 1944. and is
for release at that time.)
PROBLEMS INVOLVED IN AN APPROACH TO SIMPLIFICATION
OF FEDERAL TAX LAWS
The title of my talk this evening bespeaks the wise modesty of
your chairman-. It is stated in terms of "an approach’1 to simplification.
There is a hint here of the difficulty of the objective. We do not attain
we approach, I am ready to settle for the ?ford ’’approach". But I some- 9
times wonder if we haven’t confused our directions, — if we do not get
farther away from, instead of nearer to, our goal each year that goes by,
A spirit of humility is not amiss in dealing- with the problem of
simplification. The subject is vast. Many have tried and no one has
conquered. The job is .interminable. It spreads octo.pus-like in all
directions. One does well to take with him as he starts out on the long
journey toward simplification the message given to Everyman, in the old
play., by Knowledge, the sister of Good Deeds:
”1 will go with thee, and be thy guide,
In thy most need to go by thy side.”
Our di-Lxiculties with simplification begin with its place in the
pattern of taxation. It is not a thing in vacuo. It does not stand alone
like a pyramid on the desert. To mix metaphors, it is but one strand of
a thread which is woven into an intricate design. Vie must have revenue,
vie must get it as fairly as possible from many millions of people. Tie
must apply uniform rules, Simplicity must be weighed against all of these
competing considerations. Vie cannot have it without a price. The question
always.is: Are we willing to pay the price in revenue, equity and unii ormity?
Kinds of Simplification
To begin with, there is more than one kind of simplification
There
is simplification of concept, There is simplification of language*. There
40-21
- 2 -
is simplification of what the taxpayer .must .do. Then, too, simplification
may exist at many different levels. The very word means different things
to different people. .
An obvious level of simplification, is the language of the statute.
Then there are the' regulations, and the less formal administrative rulings
of the Commissioner of Internal Revenue, The next level is the return
and the instructions accompanying the return. We might even go back of
the return to the initial operations of the taxpayer, to the books and
records he must keep in order to file his return.
These considerations are pointers which indicate the complexity of
the subject of simplification. Some people would direct us back to statu
tory structure and its underlying concepts, A statute, of course, is
always merely the beginning «— a point of departure, ' In time, it is
enriched by the live content of concrete factual patterns as administrative
interpretations and judicial decisions add their commentary on legislative
intention. It may be compared to a diminutive charter of government
awaiting the impact of specific events. But beginnings are important, for
while .one does not end Ydth the words of the statute, “one certainly begins
there , 11
Other people say the language of the statute should be less legal: We
should abolish verbosity and make the statute read*as chastely as the
Ten Commandments, This.is easier to promise than to deliver. While I hold
no brief--for verbosity, it is èafe to say that legislative reticence on
a subject may often do more harm than good, A short “simple“ phrase in
the statute may leave much confusion, misunderstanding and litigation,
viiereas a long, complicated, section of the statute may accurately and meticu
lously cover most of the cases apt to arise. ’
^The Socratic method would soon develop a challenge to the simplicity
of simple language: Is there such a thing as perfectly plain language?
Some of our worst tax troubles have centered about the few use,s in the
statute of layman’s language. You are all familiar with the famous insur
ance section of the estate tax statute, first enacted in 1919 , which sub
jected. to estate tax the proceeds of life insurance “taken out by the
decedent." This provision consisted of merely five lines and undoubtedly
the drafters thought they had done a fine job. But initial assumptions
have long been overrun, by a continuing floôd of litigation as the courts
and the Treasury Department have struggled'valiantly with the seemingly
crystal-clear phrase, "taken out by the decedent." In the' 1942 Act Congress
has wisely overhauled this provision, and while it is no longer confined to
five lines, it succeeds in conveying its underlying message.
If we pursued the Socratic line, the next question might be: What
difference does the language of the statute and regulations make? Nobody
reads it but tax lawyers and accountants . Fortunately they are still
3
a small minority; of our 50 million taxpayers, though as complications are
piled like Pelidn on Ossa, the tax lawyers and accountants may very well
become bigger and better taxpayers.
But shouldn’t we get to the real point? It is the return form and
the instructions which must guide the man in the street. Shouldn’t we
tackle the problem at that level?
Levels of Simplification
Just as simplification itself is not a. thing apart, so none of the
levels of simplification is separate from any other. The statute con
ditions the return. What may be put on a small piece of return paper
conditions the statute. The regulations cannot go beyond the statute.
Andy of course, rulings of a less formal character than regulations are,
to use Judge Frank’s metaphor, merely reflectors, serving as administrative
moons.
I wonder if there is any group as little qualified to pass upon ques
tions of tax simplification as a group of tax lawyers and accountants.
True, they know taxes. They are steeped in them. They have an enormous
vested Interest in that knowledge. They have progressed miles ahead of
the many taxpayers who do not know the simplest things, such as how to add
^ r subtract a blank item on the return. Most lawyers and accountants have
lost touch .with the homely thoughts of Joe Doaks who frowns over his record
keeping, who cannot multiply by decimals, who finds mere words unbelievably
tricky — which they are — , and who would like a tax law which reads like
a- pill advertisement. To reduce tax laws to the limits of Joe Doaks' mental
processes is unreasonable, you say. It is reaching for the moon. That may
be true. But Joe deserves every consideration, since he is the man who
files and pays.
Simplicity is a part of fairness. Regardless of whether- we should
have a government of laws or of men, laws are made for men. Men must live
by them. They must understand them. For understanding is the first step
toward orderly compliance. In paying taxes men and women are giving part
of their time and energy to the Government, It is unfair for the Government
to demand from them the extra time and energy required to master unnecessary
complexities.
Taxpayer Attitude.
I want to repeat directly what I have said by implication — that tax
payer attitude is a most important consideration. The American people have
shown ^ remarkable capacity to pay high taxes. This may be due to a‘develop
ing civic sense which tends to make higher taxes have less and less the
aspect of "hurt.” But they have also shown a streak of independence, a ca
pacity for protest against taxes they did not want to pay. You cannot impose
- 4~
,,
V
'
,¥ ;
■
an unwelcome tax by forcibly feeding it to 50 million taxpayers, You- may
persuade., but you cannot coerce. Taxpayers are., after all; to some degfee
in control of their destinies. Paying taxes' gives citizens a very real
sense of participation in government. But they must participate with the
feeling of partners9 not arithmetical slaves. They cannot derive satis
faction from contact with their government when they are befuddled by
a maze of complexities.
Income Tax Return Forms *
y In less, than two months millions of taxpayers mil face the prospect
of filing their returns for 1943, About 12 million taxpayers will face
the necessity of declaring their 1944 incomes , The old jokes 'about the
-Ides of March mil have a grim flavor then! last month the Bureau of
Internal Revenue released the. 1944 versions of Form 1040 and the short
form 1040A. One newspaper expressed its reaction in no uncertain terms:
“It must be seen to be believed. The Toirn and its junior sister Form 1040A^
are so complicated as to defy description in a newspaper during a paper
shortage.“ I am afraid this Statement is but a preface to a long series
of bitter complaints.
The returns due next March will have a new Understructure. For the •
first time taxpayers will have paid some or all of their tax liability in
‘
advance. They will have made payments under four different headings:
■ (1) March and June, 1943, installments based upon their 1942 returns;
(2) Victory tax ■withholding in the first half of 1943; .
•(3) Income tax withholding in the second half of 1943; and
(4) September and December., 1943, installments based upon estimated
1943 income,
At the same time they will have to-compute and pay one half of the uncan
celled fraction of the 1942 tax. They*will also have to file a declaration
of estimated tax on 1944 income} and make the first quarterly tax payment
for 1944, There should be a bull market ih aspirin.
In the dark days of March., 1944, I hope you will remember that income
tax returns are but the outward and visible sign of the legislation which
makes them what they are. Return forms must be prepared by the Bureau of
Internal ReveViue .• ,But the Bureau is not a free agent; it works under
a statute which it did. not pass, This year the statute is necessarily com
plicated because we are changing over to a system of payipg-as-we-go. No
statute could entire^ eliminate complexity during this .shift from one payment method to another,. But I cannot claim that the transition process
accounts for a.11 complexities, Simplicity has other statutory impediments
which must be recognized if they are to be overcome
5
Simplification in the 1943 Revenue' Bill
Let me give credit where credit is due by s.aying that the. pending
Revenue Bill accomplishes some simplification. ,It eliminates the earned
income crédit. This step was recommended by the Treasury as early às.
1942 on the grounds that failure to distinguish between different sources
of income below &3j000 deprived the credit of its chief significance. As
you well know} the credit has complicated both the. return and the computa
tion of the tax.
• The Senate version of the bill'repeals the so-called■second windfall
provision of the Current Tax Payment A ct.of 1943. This provision^ designed
to cut down tax forgiveness when an individual’s income was very, substan
tially increased in the war years 1942 and 1943 over what it was in pre-war
years9 would apply in comparatively few cases.
Two simplification measures relating to excises are included in both
the House and Senate Bills. The first gives effect to the President's
recommendation of August 1^ 1943., by removing numerous excise tax exemptions
conferred by existing law with respect to articles sold to the Federal"
Government. The President proposed this step "for the purpose of saving
the manpower utilized both inside and outside the Government for the adminis
tration of these operations." The termination of this exemption will, not
operate to the disadvantage of the Government inasmuch as the expenditure
incurred by the Government in the payment of taxes m i l be recovered in
the collection of the taxes.
The second measure repeals the provision in the existing law which
allows the deduction of Federal excises in computing net income for income
tax purposes. This disallowance was recommended by the Treasury because
at present the allowance of deductions is haphazard and depends entirely
on legal liability for the tax rather than upon the incidence of the tax.
The average taxpayer finds it difficult to determine which excises he can
deduct^ he also finds it too burdensome to keèp accurate records of the
taxes he pays. Consequently, in many instances the deduction is little
better than guess wor k . From the administrative point of view^ the dis
allowance of this' deduction will reduce, the amount of work involved in
checking individual income tax returns.
Treasury Suggestions for Income Tax Simplification
But other Treasury suggestions looking toward simplification have
not been adopted. The Treasury recommended the consolidation of the normal
tax and the surtax. This vrould have reduced computation work. You are
well aware of the defects of the present system. The earned income credit
and the issuance prior to 1941 of partially exempt federal bonds are the
only.remaining excuses for two concepts of net..income — one for normal
tax purposes and the other for surtax purposes. With the earned income
credit removed_, only one reason remains for submitting to the difficulty
involved in expressing the rates of tax.
6-
The obvious solution was.-tò integrate ratea into ,one schedule and
limit ourselves to one concept of net income. Our paté for the first
of net income cchild then have been 19 percent' «— 6 percent present
normal tax plus 13 percent, the .first surtax brackét'. Fop the second
$2,000, the rate could have been 22 percent — - 6 percent plus 16 percent.
■This simplification could have been extended throughout the rate structure.
It could have been done without any windfall to the owners of partially
exempt Federal securities by allowing, in lieu of the present credit against
net income, a credit against the tax of 6 percent of partially exempt tax
interest, or of net income after the exemption, whichever was lower. This
would have given partially tax-exempt bondholders 'the exact benefit.-they
possess today and would have limited extra computations to the few taxpayers
who own tax exempt bonds,
, Another unaccepted Treasury recommendation was graduated withholding.
The Treasury proposed that collection at the source be made to apply to the
taxpayer’s full liability rather than merely to his partial liability under
the normal tax and the first bracket.of surtax. The method’ for accomplish
ing this, result would-have been to set up a series of withholding rates
.applicable t o ’gross wages, as a
for the present precise rates,
..This series of withholding ra$#§
$£$vS been expressed in tables.based
on the status of the taxpayer*
fâfytl'à also have been tables 'calcu
lating the amounts '/to be
at .present.
*Any objections to the inaccuracies resulting from the wide brackets
•in the present-law tables could have
'minimized by providing substan
tially narrower brackets over the ran^gÿo f wage within which most employees
fall ,
You may be surprised that the suggestion for .graduated withholding
was made largely in the interest of simplification. You'may even be aston
ished .’when I tell you that employers responded enthusiastically-to the
suggestion. Employer groups vdth whom'the Treasury discussed withholding
problems signified the desirability of graduated withholding from the
standpoint of their relationships with employees. At the time for'filing
the first quarterly declarations last September, several large employers
reported that requests from employees for information as to total amounts
of wage and of withholding over the year, as well as for assistance in the
computations and the preparation of the form, resulted in significant
adciitional burdens for their tax and accounting staffs. The question arose
whether graduated withholding vrould unduly complicate the preparation of
payrolls. Careful study, as well as discussions with employer groups
indicates that little or no extra burden upon employers wrould result .
Investigation of this proposal reveals further interesting data,' At
present the first $2,000 bracket covers about- 34^000,000 taxpayers,* "The
remaining 23 brackets cover less than 7,000,000 taxpayers. The-lesson of
- 7 -
these figures is that our rate structure lacks refinement for the great
majority of taxpayers. Thirty-four million taxpayers have the same rate
of tax on their income without* any progression. The progression in our
tax rates is limited to the remaining seven million taxpayers. However,
the moment we try to provide better progression, we have to face the
necessity for graduated withholding. As I have said, this could have been
accomplished. The by-product of graduated withholding — which would have
enabled us to achieve the desirable objective of refining the rate struc
ture for the great majority, of taxpayers — would have been the elimination
of many quarterly declarations for persons receiving salaries above the
present first bracket of surtax. A greater number of declarationswould
have been eliminated if, in addition, we could have raised the present
requirement relating to outside income, other than salaries,, from $100
to a somewhat higher figure.
I have not exhausted the list of Treasury defeats on the simplification
front. Its major reverse was the retention of the Victory tax. This tax
is a stalwart barrier to simplification. I want to explain in some detail
exactly why this is true. First, the Victory tax introduces a separate
concept of taxable income^ second,.it uses an exemption different from the
regular income tax exemption/ third, it requires an entirely separate tax
computation5 and fourth, it recognizes family status only through a compli
cated credit. The logical move in the direction of simplification would
have been to shift the burden of the Victory tax to the regular income tax
structure. To that, end the Treasury proposed that the Victory tax be
eliminated and that with a reduction of exemptions and dependency credits,
its burden be absorbed into, the net' income tax scale.
The tax bill, as passed by the House, would repeal the Victory tax.
However/ instead of integrating it With the regular income tax, it sets
up a separate minimum tax. In other words, it replaces an additional tax
with an alternative tax. For the simplification riddle this is an inept
solution,
»
lx the minimum tax were to become law, the taxpayer would be confronted
with two alternative taxes, each with different rates and each with an
entirely different set of exemptions. The relationships between the minimum
taJfand the regular tax are so complex and elusive that many husbands and
wives would be forced to go through a lengthy series of alternative compu
tations to determine their lowest possible tax liability. All in all the
Treasury concluded that the minimum tax "cure” prescribed in the House bill
was worse than the Victory tax "disease."
Fortunately, the defects of the minimum tax plan in the House bill
were so patent that the Senate Finance Committee refused to accept it.
Unfortunately, the Committee was unwilling to abandon the Victory tax* al
though it did effect some simplification b y changing its present differ
ential rate to a flat 3 percent for every taxpayer regardless of marital
- S -
or dependency status,, However, the Committee *3.,plan fails to eliminate
tne .double tax computation, the.double income base, and the separate exemption
of the Victory tax 0
A good deal of additional simplification in tax returns is possible
if changes are made in the law to simplify the concept of income0 With such
changes, returns might be reduced to very simple statements for persons
subject to withholding of the full tax on wages and salaries and having no
other incomeo This would make compliance easier and would reduce taxpayer
irritâtion© The changes in the law necessary for extreme simplification of
returns would reduce the fairness of the tax© However, it may well be that
the simplicity gained would offset the equity lost© It is doubtful whether
it would be desirable completely to eliminate a statement or simple return
by the taxpayer to the Government© Returns have a certain value both to
the Government and to the taxpayer They serve as. a basis for adjusting
the overecollections and under—collections which are inevitable in any
withholding system,, They provide a cross-check against employers1 reports,
thus eliminating a possible source of tax evasion,, They also serve as a
direct contact between the taxpayer and his Government, which has wholesome
civic valueo
Other Suggestions for Simplification
So far I have discussed simplification for the masses of taxpayers,.
That is the immediate job© moreover, it is our most important job to make
the income tax understandable to the great mass of the 50 million taxpayers
who. cannot employ lawyers and accountants0 .Simplification should beçùn at
that levelo
Buo simplification need not end there,. The. business man is entitled
to .as much certainty as is'feasible,. Corporations and trusts need not be
harassed with complexities0 Individual taxpayers employing lawyers and
accountants deserve all the clarity we can achieve0 Some newspaper comment
to o he contrary, there is plenty of work for tax lawyers and accountants
for many years to come without benefit of needless complexity© As
Mr© Justice Jackson said in the recent. Dobson, case: "No other branch of
tne law touches human acoivities at so many pointso It can never be made
simple, but we can try to avoid making it needlessly complex©"
In this territory there is so much unfinished business that I can do
little more than mention a few items©. Tax law relating to trusts is in
confusion© Reorganization tax iaw is' a morass of such transcendental
metaphysics that exact meanings can*be discovered only ty the hair-splitting
theoreticians of Von Jhering1s "heaven of legal concepts©" The whole corporate
tax structure needs overhauling] we need better integration between the
personal and the corporate tax 0 The bankruptcy act has to be coordinated
with the tax law 0 Mr 0 John Maguire, w h o *is well known to all of you, is
working for the Treasury on all these problems© Tie need all the help we
can get from him and from all of you,©
- 9Estate -and Gift Taxes
¥e may profit most this evening if I 'concentrate on one or two.phases
of this part of the vast signification problem© .We might first choose
the estate and .gift taxes for the purpose0 In. considering these taxes I •
want to reiterate that this is. a narrow' segment of our subject© Very' few
people die with enough wealth to bring estate tax problems to. the -Treasury ©;
In 19^2, 19,884 estate tax returns.were filed and total estate tax collections
for the calendar year amounted to only a little over $370 million© 'Very'" few
people have sufficient surplus of property to create gift tax problems©
This is not to say, however, that these are not important' taxes 0 They
may affect only a relatively few people, but they affect them at- a sensi
tive point©. They bring to the Congress,' the Bureau, and thé courts a host
of difficult questions©
The gift tax was ostensibly designed to .prevent the avoidance of the
estate tax in addition to the income tax© From this point of view the
most successiul gift tax v/ould be. a tax which so discouraged gifts that it
yielded little revenue© However, the drafters, it would seem,•promptly
made certain that this-objective would hot be realised© The'gift taX rates
Tfere so arranged that transfers during life to circumvent estate and.in—
come t axes would actually be encouraged, with the Government procuring its
revenues at an earlier date© while avoidance no longer was tax-free, the
price in gift tax was sufficiently small to make avoidance profitable©
The disparity in rate was apparently' intended to stimulate the transfer
of wealth during life rather than at deatho This fundamental break—downin tax tneory is reflected not only by the deliberate disparity in rates,
but by double exemptions and an annual gift tax exclusion© Moreover every
transfer during life, up to a certain point, tumbles.out of the highest
applicable estate tax brackets into the lower gift tax brackets, and the
earliest^gifts may produce the greatest income tax savings in.yielding the
1 oweso gift tax© ihe gift tax has necessarily been caught in a whirlpool
of conflicting purposes and is therefore comparatively impotent to fulfill
its original function as a protective device© It certainly does not attain
the objective of imposing na tax which measurably approaches the estate tax
which would have been payable on the donor's death had the gifts not been
made^ and the property given had constituted his estate at death©" As a
"policeman tax" the gift tax has been a conspicuous failure©
Our present irrational framework is by no means confined to the evils
of rates and exemptions© Our courts have for years been struggling with
a grossly inadequate and antiquated estate tax base© By an adroit use of
trusts, tne impact of the estate tax can be suspended over several genera
tions© Faced with the constant specter of avoidance, it is small wonder
that the courts have heroically attempted to fashion a transfer concept
prepared^to meet a variety of exigencies© And judicial attempts to import
clarity into legislation often yield fine distinctions which lie beyond the
discernment of average mortal man 0
IO Simultaneously the courts have sought to adapt the gift tax to the
needs of the estate tax,, although this is frequently impossible unless one
is willing to sacrifice the interests of the income tax« On the other
hand, the desire to assist the income tax may seriously impair the estate
tax« All these difficulties derive from a failure to focus upon objectives
and to draw the appropriate lines of incidence« The time has passed when
we could afford the luxury'of sitting by and watching our revenue system
grow like Topsy« Ary tinkering within our present framework can only lead
to further tinkering'and to more baffling judicial niceties and refinements«
Corporate Taxation
The simplification road is so long that we can traverse it only a
little farther this evening« life•have paused for a brief glance at the
estate and gift taxes# Before closing we can do no more than pay passing
respects to the corporate tax problem«
Our federal tax system, like the traditional American family, lias its
black sheep« More than a century ago, Nicholas Francois Canard said:
"Every old tax is good, every new tax is bad, but the new becomes good in
time«" Most countries have at one time or another found themselves saddled
Y\dth taxes which do not conform to the currently accepted pattern of a
"good" tax« Yet the bad tax may be more easily ejected than the traditional
black sheep« A tax may not be good because it is old, but age and habit
enable us to tolerate in an olct tax features to which we should violently
object in a new tax« The path of tax reform is. not one along which move
ment can be swift« It must be a slow, uphill climbf
Although there aro blacker shèep in our tax fold —— the declared—value
excess-profits tax could easily qualify for this distinction — , the tax
which promises to give us the most trouble after the war is the corporation
income-tax« Sven before the present war this tax was believed to be rough
on equity ownersj it has frequently been blamed for frightening potential
venture capital into "safer" investment outletso
For the moment we need not be greatly concerned since normal invest
ment outlets are closed for the duration« But with the opening up of
investment- opportunities after the War the effect of high corporation tax
rates on the ability of corporations to raise equity capital will pose a
more serious problem« In addition to its effect on levels of investment
the corporation tax makes its contribution to the complexity of our tax
lav;« One of the most perplexing questions of the postwar period will be
what should be done about the corporation income tax 0
The complexities of business make it doubtful that the corporation tax
could ever be a simple tax, although the averaging of income through the
Operation^ of carryforward and carryback provisions would make a substantial
contribution- towards simplification by reducing the importance of depre
ciation rates and other annual adjustments in arriving at taxable income«
Real simplification of our tax laws from the point of view of the business
man might well require the repeal of the corporation income tax, which, of
course, would be a major tax change involving many important considerations
besides simplification«
-
11
-
Even, if -we wanted to banish this particular member of our tax family,
it would not be easy to do so„ In the metaphorical sense, sheep are
hardly ever altogether black«, The productivity of the corporation income
tax' offers at least partial compensation for its faults* It is a tax that
without much prodding can be depended upon to bear a substantial part of
our revenue burden© Besides, opinions conflict and the corporation tax is
not universally regarded as bad© In fact, it lias many friends, especially
among persons who regard corporations not as organizations of individual
stockholders, .but as entities possessing individuality and taxpaying ability0
What should be done about this tax Yri.ll not be an easy question to resolve©
11
n
If the corporation income tax is truly a' black sheep, you may ask how
it has been permitted to assume such an important place in our Federal
tax system© Why was’it enacted in the first place, and why has it been
increasingly relied upon with each, passing decade? To answer these
questions-we .must glance back at the circumstances Yfhich surrounded the
enactment and subsequent development of the tax on corporate income*
The first chapter in the history of the corporation income tax was
written in 1909, largely as the outcome of a threatened split in the
Republican party on the issue of the individual income tax«. The incipient
revolt of the western Republicans on this issue w as, ultimately quieted by
the promise of President Taft to place an income tax amendment before the
states for ratification, and his offer of a 1 percent excise tax on
corporations measured by net income© This compromise legislation went on
the premise that corporations w e r e proper subjects of taxation© In the
forest of taxation great oaks from little acorns grow0
With the ratification of the 16th amendment, and the passage of the
1913 income tax law, the 1 percent excise tax on corporations became in
name wliat it had been in fact — r a 1 percent income tax 0 However, since
this rate was the same as the normal tax rate on individual Incomes, and
since dividends vrere not subjected to the normal tare on individual incomes,
the n e w corporation income tax w as not so much a tax on corporate enter
prise as a collection-at—source tax on individuals© Had it remained so,
the problem which is now confronting us might never have arisen© But, as
you all know, the corporation income tax did not long remain a mere adjunct
of the individual income tax© Events abroad w e r e bringing us to the
threshold of the First World War and to a series of Yi/arbime tax bills in
Yrhich the corporation income tax ?rould be given an independent status©
The Revenue Acts of 1917 and 1918 not only raised the normal tax rate
on corporations above the level of the normal rate on individual incomes,
but subjected corporations to an excess-profits and Yrar-profits tax at rates ranging from 30 to 80 percent© With the cessation of hostilities,
.when individual income taxes were promptly lowered, no attempt was made to
restore the pre-war relationship between the individual and the corporation
income tax© Corporation income tax rates wore not reduced© In fact, the
repeal of the excess—profits tax w as made the occasion for a compensatory
2- 1/2 percent increase in the corporation income tax from 10 percent to
12—1/2 percento
-
12
-
Little, consideration appears to have been given at the time to the
rationale of.the :corporation income tax or to the possible effects of
giving this tax a permanent place in the federal tax system« The belief
that corporations as such possessed taxpaying ability had by this -time
undoubtedly taken root in the minds of many, but we embarked upon the
taxation of corporate enterprise not so much because .we believed' the
corporation tax t o be a good tax as because we had found it; to be a pro
ductive one0
In 1936 an attempt' wag made to de-emphasize the taxation of corpora
tions as such; this attempt, recognized the problem of undistributed
corporate profits as a tax-<avoiding device« Under the plan proposed by
the President in that year the undistributed profits tax, designed to re
place all other corporation taxes, would have been an adjunct of the
.individual income tax 0 Corporate income would have been taxed only once,
either as individual income or as undistributed profits« As you know, the
House followed the recommendations of the President, but the Senate was
reluctant to relinquish the corporation lax, and the 1936 Act contained
both a tax on corporate income and one on undistributed profits« Few were
satisfied with this compromise, and the undistributed profits tax after
a short period of invalidism died« There are ©any in business today who
wish it had been a healthier child«
Thus we entered the Second World War with the corporation income tax
still firmly established in the federal tax system« With the increasing
demands for revenue in 1941 and 1942, it was inevitable that we should
turn to this tax, as well as to the individual income tax« Combined normal
tax and surtax rates were raised to 31 pci"cent in 1941 and to 40 percent
in 1942« In addition, Congress imposed an excess profits tax in 1940, •
with rates now at the all time peak of 90 percent, and presently, perhaps,
.to be 95 percent«
...
.
That, in brief, is the life history of the corporation income tax«
For the duration, business can expect little relief from this tax 0 Business
■might well temper its-postwar optimism with-a recollection that attempts
to eliminate corporate income taxation have in the past been singularly
unsuccessful«
Although a frontal attack on the corporate tax may have little chance
of success, there remains a method of blunting its edge« In 1942 the public
utility industry succeeded in reducing the effective burden of the tax not
by working on the rate, but rather by attaining an adjustment in the base«
The deduction of preferred dividends from surtax net. income of the utility
companies .is .more than a straw in the wind«. Where preferred dividends have
led, common dividends may follow« I leave it to you whether businessmen
Tdll be inclined to push further along this path, bearing in mind, as they
should, that it leads directly back to the undistributed profits tax of
1936«
- 13 -
Conclusion
I believe it is evident that I am in favor of simplification of our
tax laws©
I have proposed several specific measures designed to achieve
simplification for the masses of taxpayers® Indeed, it is hardly an
exaggeration to say that this type of simplification is necessary if our
income^tax is to survive® I have also advocated simplification of the
provisions affecting the smaller number of taxpayers represented by members
of this group® There are many more of those provisions* than I have been
able to discuss this evening®
But X cannot end without a word of warning® We may go so far along
the road-to simplification, but no further® Tax statutes cannot be com«*
pletely immunized from the ravages of interpretation and uncertainty® There
is a growing awareness among lawyers and others that legislative intention
needs.- uo be a dynamic concept and that administrative discretion lias a
legitimate interest in Clarifying areas of uncertainty where interpretation
may easily incline either way® Words at best are "inexact tools" and are
often confronted by the unexpected® A recognition of the delusive exactness
of words is good reason for making a statutory scheme as sturdy as possible:
there must bo agreement on fundamentals and an assurance of consistency®
lie need to recognize those truths, but we need also to remember that
some measure of interpretation and uncertainty must always remain, for
human ingenuity is unlimited in its powbr of conception® Mr® Justice Jackson
has expressed doubt whether our tax laws can be much simplified, for to
use his own words, "the truth is that complexity is in our lives more
indelibly than in our laws®" In Jclck v 0 Helvering Mr® Justice Cardoza
voiced much the same doubt: "Here, indeed, as so often in other branches
of the law, the decisive distinctions are those of degree and not of kind®
One struggles in vain for any verbal formula that will supply a ready
touchstone® The standard set up by the statute is not a rule of law* it
is rabher a way of life® Life in all its fullness must supply the answer
to the riddle®"
In our search for simplicity we meet again the perennial problem of
degree which permeates all legal activity® Tax statutes must be drawn so
that they may be as easily understood as possible® But in the rush for
simplicity tney must preserve their contact with the complexity of modern
lifej they must be firmly rooted in our fast-moving underlying experience®
It is not enough that they be sufficiently comprehensive to reach*the old*
they must also be sufficiently flexible to reach out to the new® For
statutory interpretation is more than the discovery of a pre-existing
meaning In the mind of the legislator® It is often a search for a meaning
nat would have been intended if an unanticipated situation had been presented
when a bill was -drafted® The courts may not say to the legislator: "We see
what you are driving at, but you have not said it; therefore we shall go on
as before®!'
must try to find the major premise of the conclusion
expressed in the statute, and then obey the policy they see written in the
law®
0O0
FOB IMMEDIATE RELEASE,
January 11,..I S M , ____
The Bureau of Customs announced today preliminary figures shoving the
quantities of wheat and wheat flour entered9 or withdrawn from warehouse* for
consumption under the import quotas established in the Presidentas proclamation
of Hay 28* 1941* as modified by the Presidents proclamations of April 13* 1942*
and April 29* 1943* for the 12 months commencing May 29* 1943* as follows}
WHEAT
Country of
Origin
wheat, and similar
:______ wheat products________
i
Imports
:
Imports
}
Estábil shed: May 29, 1943
sEstablished : Hay 29* 1943
'
Quota
tto Pec» 31» 1943:___ Quota___ : to Dec. 31. 1943
(Pounds)
(Pounds)
(Bushels)
(Bushels)
795,000
Canada
~
China
mm
Hungary
m
Hong Kong
«•*
Japan
United Kingdom
100
m
Australia
100
Germany
100
Syria
«¡ft
Hew Zealand
Chile
100
Hetherlands
2,000
Argentina
Italy
100
•»
Cuba
1,000
France
m
Greece
100
Mexico
tu»
Panama
«9
Uruguay
tul
Poland and Danzig
«•
Sweden
ft#
Yugoslavia
me
Norway
m
Canary Islands
1,000
Rumania
Guatemala
100
100
Brazil
Union of Soviet
Socialist Republics
100
Belgium
:Wheat flour* semolina* crushed
lor cracked
______ 1 2 S _
800,000
205*908
m
tie
•*
<*>
-
3*815*000
24*000
13,000
13*000
8*000
75,000
1*000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12*000
1,000
1,000
1,000
1,000
1,000
1,000
1*000
1*000
1,000
1,000
-
mm
em
me
mm
m
mm
m
m
795,000
•
-
m
*
4*000*000
205*908
795,000
•
mm
m
me
me
«a»
me
mm
«•
mm
me
mm
me
me
me
me
em
mm
me
m
wm
m
mm
mm
me
mm
mm
me
•
mm
mm
me
m
mm
-
tie
me
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Wednesday# January 12, 1944.
Press Service
No. 40-22
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
Country of
Origin
Wheat flour, semolina, crushed
or cracked wheat, and similar
wheat -products
;
Imports
:
Imports
Established; May 29, 1943
Established- ; May 29, 1943
Quota
:to Dec, 31,1943
; to Dec. 31, 1943
Quota
(Bushels)
(Bushels)
(Pounds)
(Pounds)
795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
«
Australia
100
Germany
100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argent ina
100
Italy
.Cuba
1,000
Prance
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
—
Norway
Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
100
100
Belgium
800,000
WHEAT
795,000
**
ig
-
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1 , 000
1,000
—
—
-
-
-
—
-
—
-r
795,000
—
4,000,000
205,908
m
«*
—
-
—
-w
.—
205,908
^
111«,?*:*?.Ti■ ■ 2/
•“ m
COITOH CAlffl-STBlPS^/ :0GKBKfe -WASTE, LAP WASTE,' SLIVER «¿STE,. AND BOVINS WASTE
'vbjSTHER OH SOT KAKUPACIUREI! OB OTHiRWISS ADVANCED IS VALUE. Annual quotas'
commending September 20, by Countries of Origin:
*'
4
. .
‘
^ ;
■| | "'
Tot4. quota, provided, however, that not more than '3&*l/3 percent/ of the-*
quotas shall be filled by cotton wastes other than card strips/ and comber
wastes made from cottons of 1-3/16 inches or more in staple length in the
case of the following countries: United Kingdom, France, Netherlands,
Switzerland, Belgium, Germany and Italy:
-— ----- — ---- — .
---- — ----- — ___li__(In- Pound.s3..
_
*
:TOTAL IMPORTS :ESTABLISHED:Impor t s Sept. 20,
Country of Origini : E stabil shed :Septy. 20, 1943 :33-1/3$ of :1943, to
î TOTAL QUOTA ;Dee« 31, 1943 iTotal Quota:
Sii, 1943 ,/
United Kingdom.... ..
Canada,........__ ..'
France.... .
..
British India,....
Netherlands.... ,. **
Switzerland....... .•
Belgium...... .., * *
•*«00 9 000p,0 ..
China,
..
% y p t ....... .....
Cuba............. * *
Germany....... .
..
Italy............. ..
TOTALS
4,323,457
239,690
227,420
69,627
68,240
44,388 *
:38,559
341,535
17,322 *
8,135 *
6,544
76,329
21,263
. 1,441,152
'imi
‘■ mm\.
m*
mm
't : '
75,807
*-J22,747
*.14^796
Ì2f853
9m
•mm '
¡i
9m
■^
f;
5,482,509
«* '
-
25,443
. .7,088
mm
.
- .
1,'599,886
t -----------* --------------------X h -included in total imports>~ column 2.
gj~
The Brestdent’s proclamation, signed March 31, 1942, exempts from import
quota restrictions card strips made from cottons having a'staple 1-3/16
inches or more in length*
,
.
'w '
— oOo—
JÔR IMMEDIATS RELEASE,
January XI. 1944,._—
s
The Bureau of Custom^ hniiounded today that preliminary reports from the
collectors of customs ShOV imports of cotton and cotton y§ste chargeable t o ■the
import quotas established by the President ,;s pro citations of September
1939
and December 19, 1940, as follows, during the period .September 20, 1943, to
December 33.» 1943?
COTTON HAVING- A STAPLE OF LESS THAN' 1-11/l 6 INCHES (OTHEpL THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 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:
A ; ;
.;
(In Pounds)
—
* Country of
Origin
Staple length less : Staple, length 1-1/8" or more
but less than 1-11/16” .
than 1-178”
:
{Imports Sept.: Established :vImports Sept.
*
: 20, 1943, to
;(ÿiota
Established:20, 1943, to :
%
onnt.«
:Eec. 21* 1^43.: 45.656.4 420 . Dec* 31, 1943
jpg
Egypt and the Anglo—
7837816
Egyptian Sudan..... .
2477952
Peru........ ...... ... •
2,003,483
British India....... ..7
China................. . 1,370,791
Mexico.................. 8,8837259
618,723
Brazil.................«
Union of Soviet
4757124
Socialist Republics...
5,203
Argentina......... .... i
237
Hai ti.. ........
9,333
Ecuado r .............
-75 2
Honduras.... ...........
871
Paraguay................
124
C o l o m b i a . «
195
Iraq...t................
2,240
British East Africa.....
71,388
Netherlands East Indie-s.
Barb ado s..........
Other British West
21,321
Indies l/........... *
5,377
Nigèria............... ♦.
Other British West
16,004
Africa
.... .....
689
Other French Africa 3»/•
Algeria and Tunisia.....
14,516,882
17,521,385
599,892
.«■**
73»576
—
8,883,259
420,000
*»
:— •
*<i*
«!»
«ai*-
—
•
«#
-4
- ',
«*■
V - .
.—
\
—
. -*
**
.«* •
»
—
-
—
9,376,835
45,656,420
1/ .'Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
2,/ Other than Gold Coast and Nigeria,.
Zj ’
Other than Algeria, Tunisia, and Madagascar.
X8.12X.377
■$p
4' ‘
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE»
Wednesday, January 121 1944.
,
Press Service
t-No,.; 40—23 - •-,*
‘
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the Presidents proclamations of September 5, 1933,
and December 19, 1940, as follows, during the period September 20, 1943, to
December 31, 1943:
COTTON t i l v i m A STAPLE OE LESS THAR 1-11/16 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OE LESS THAN 3/4 INCH IN STAPLE; LENGTH AND CHIEELY USED IN THE MANU■ EACTURE OE BLANKETS AND BLANKETING, AND OTHER THAN LINTERS) , Annual quotas
'commencing September 20, by Countries of Origin*
(In Pounds)
Staple length less ,: Staple length l**l/8n or more
than 1-1/8»
• : ■ but less thàn 1A11/16M
:Import s Sept. » Established * Imports Sept,
sEstablished:20, 1943, id ;
Quota
V 20, 1943i, to
Quota
:Dec, 31, 1943: 45,656,420 : Dec. 31, 1943
J
J
Country of
Origin
Egypt and the Angloy '
Egyptian Sudan. .......
HP©ru •«• • *••«•*>«•
British India. .........,
China.
Mexico............ .....
Brazil.. . . . . . . . . . . . , ,
Union of Soviet
Socialist Republics.,.
Argent ina,.....
Haiti.
Ecuador,................
Honduras
Paraguay................
Colombia»
British East Africa..,..
Netherlands East Indies.
Barbados,..............
Other British West
Indies l/...........•
Other British West
Africa 2
Other Erench Africa 3/»
Algeria and Tunisia...,.
783,816
247,952
2,003,483
1,370,791
8,883,259
| 618,723
475,124
5,203
237
9 ¿333
752
871
124
195
2,240
71,388
0
21,321
5,377
16,004
689
-14,516,882
1/
2/
3j
17,521, 385
599, 892
73,576
11
8,883,259
420,000
‘
**
/ .1
-
T'Mi •
*
■0
—
-
-
-|
#r
—
\T
—
—
—
—
—
■00
0
—
&
—'
9,376,835
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria,
Other than Algeria, Tunisia, and Madagascar,
(Over)
18,121, 277
. *; '*- 2 - ;
COTTON,CARD1 STRIPS, 2/ COMBER WASTE, LAP WASTE, S L I Y I E * W A S T | r R O V I N G WASTE,
WHETHER OR NOT MANUFACTURED OR OTHERWISE AJKANCED’T ^
S^^^l^q,u.'<5‘^ s
cofflinencing- September 20, by Countries o f Origin:,_ v.
_
.Total-; quota, provided, however, that not more than 3 & 1 / 3 parent of the quotas
sh9.ll be, filled by cotton wastes other than card si'tips-gy^and comber'wastes
made from cottons of 1**3/L6 inches or more in staple’length:inthe case1bf
the following countries: United Kingdom, Prance, Netherlands,., Swit'zerlhiid.,
Belgium, Germany and Italy:
r ,
(In Pounds)
•
♦
:TOTAL IMPORTS •ESTABLISHED: Imports ’Sept, 20,
Country of Origin : Established }Sept. 20, 1943 :33-l/3$ of :1943, to
TOTAL QUOTA :Dec. 31, 1943 :Total Quota:Dec, 31, 1943 1/
United Kingdom.,.,....
C a n a d a . .... •>..,,.
France,.,.., .....
Br^tilsh, .In;dija.
.•
Netherlands. •.....;. .
Switzerland,,,.....
Belgium,
J apan.............
China..,,....... .
Egypt.'. .......... ,..
Cuba..........
Germany.............
Italy,..............
TOTALS
. 4,323,45?
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329-,'*
21,263
-
^
-r
- :
T
—
—
•*
ft
5,482,509
2.
• .
y»
1
ft
1,441,152
V
75,807
22,747
14,796
12y853 ’
, <M .«*>-v
—
-
»«^0« ,25,443
7,088 .,
1,599,886
...
’
ft
-
, ..
1/
Included in total imports, column
2/
The President's proclamation, signed March 31f 1942, exempts from import
auota restrictions card.strips made from cottons having-a staple 1-3/16
inches or more in length.
-0O0-
2
*
* :
Unit
:
Commodity
i_____ Established Quota
a
of
:
_____________ {Period and Country; Quantity? Quantity t
Surer or black
foxes, furs,
and articles:
Foxes rained
nnder $250 each
and whole furs
and skins
Tails
Month of December
Canada
17,500
Humber
Other than Canada
7,500
Humber
12 months from
Dec. 1, 1943
5,000
Piece
Imports as of
Dec. 31,
1943
(Quota filled)
238
2
\
Paws, heads, or
other separated
parts
N
500
Pound
495
Piece plates
N
550
Pound
•
Articles, other
than piece
plates
N
500
Unit
8
TOE IMMEDIATE RELEASE,
January 11» I94L,
The Bureau of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements, from
the beginning of the quota periods to December 31, 1943, inclusive, as follows:
Commodity
e
•
:
:
Established Quota
:
fPeriod and Country: Quantity j
%it
of
quantity
1 Imports as of
:
:
Dee. 31»
1943
Whole milk, fresh
or sour
Calendar year
3,000,000
Gallon
7,085
Cream, fresh or sour
Calendar year
1,500,000
Gallon
926
Fish; fresh or
frozen, filleted,
etc*, cod, haddock,
hake, pollock, cusk
and rosefish
Calendar year
f 17,804,128
/ Pound
16,118,339
90,000,000
60,000,000
Pound
Pound
24,780,645
3,529,348
Square
1,444,237
White or Irish
potatoes:
certified seed
Other
12 months from
Bed cedar shingles
Calendar year
Sept. 15, 1943
2,506,072
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than &f> of
total soluble
solids
Càiendar year
1,500,000
Pound
(unstemmed
equivalent)
Gallon
(Quota
filled)
344*040
TREASURY' DEPARTMENT
Washington
ROB IMMEDIATE RELEASE,
*
Wednesday* antiaiy 12, 1944*.— ,,.. i
—
.
.—
*
.1 ..........;
Press Service
•'f:W . ;r;/40~24
The Bureau of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements,’from 1
thelbeginhing)of the-quota periods to December 31, 1943, inclusive, as; follows:
Commodity
f
:
Established Quota
;
:
• Period and Country'« " f : Quantity;:
Unit
:Imports as
of
:of Dec. 31,
Quantity :
1943;-;i V
Whole milk, fresh
or sour
Calendar year
3,000,000
Gallon.f^
Cream, fresh or sodr *”*
Calendar year
1,500,000
Gallon
Pish'; fresh or
'■
frozen, filleted,
etc., cod, haddock,
hake, pollock, cusk ,.
arid rosefish
Calendar year
17,804,128*
White or Irish
12 months from
potatoes: -....... *.-.S-eptv -15, 1943 ™;....
certified seed
90.000.
Other
60.000.
Red cedar shingles
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
2,506,072
Calendar year
22,000,000
Calendar year
1,500,000
,
7,QS5,
926
Pound
16,118,339
000 Pound
24,780,645
3,529,348
000Pound
Square
Pound
(unstemmed
equivalent)
1,444,237
(Quota
filled)
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than 6$ of
total soluble
solids
(Over)
Gallon
344,040
Commodity
Silver or black
foxes, fairs,
and articles;
Foxes valued
under $250 each
and whole furs
and skins
Tails
J
Unit
:Imports as of
i
of
; Dec* 31,
i Period and Country ? Quant ity ; Quantity i
1943
.
Established Quota
Month of December
Canada
17,500
Number
Other than Canada
7,500
Number
5,000
piece . B -
12 months from
•.Dec. i f 1943:
Paws, heads, or
other separated
parts
n
Piece plates
n
Articles, other
than piece
plates
n
(Quota filled)
238
2
500
Pound
495
550
Pound
—
500
Unit
- 8
V ö ^ & 6
VOR IMMEDIATE RELEASE
January 11, 1944»---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« 1943« provided for in the Inter«»
American Coffee Agreement« proclaimed by the President ©a April'15, 1941« as
follows}
»
%
Country of Production
:
____________________________s
s
Authorized for entry
Quota Quantity l....
far CQaaMPllPJa--- (Pounds) 1/ : As of (Date) :
(Pounds)
Signatory Countries}
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
1,353,183,480
458,336 «34©
29,100,720
11,640,288
17,460,432
21,825,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
23,373,202
3,637,590
61,111,512
R
263,269,172
137,216,184
2,472,013
2,197,677
3,674,226
11,113,864
940,619
6,299,827
3,184,368
1,065,178
13,995,745
555,632
439,297
9,737,212
H
1,991,321
Dec« 31« 1943
ti
«
t»
If
n
it
n
n
R
R
R
H
>n-signatory Countries!
51,653,778
2j
Quotas as established hy action of the Inter-American Coffee Board on
March 11« 1943«
«•oOo*
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, Januaxy 12, 1944,
Press Service
No, 40-25
The Bureau of Customs announced today preliminaiy figures showing the quan
tities of coffee authorized for entry for consumption under the quotas for the
12 months commencing October 1, 1943, provided for in the Inter-.American Coffee
Agreement, proclaimed by the President on April 15, 1941, as follows:
Country of Production
:
:
:
Quota Quantity
(pounds)
1/
:
Authorized for entry
:
for consumption
; As of (Date) : (Pounds)
Signatory Countries;
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Halt i
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
1J
1,353,183,480
458,336,340
29,100,720
11,640,288
17,460,432
21,825,540
87,302,160
77,844,426
40,013,490
2,910,072
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Dec, 31, 1943
II
It
It
II
II
IT
II
It
«
tl
II
H
It
It
262,269,172
137,216,184
2,472,013
2,197,677
3,674,225
11,113,864
940,619
6,299,827
3,184,358
1,065,178
13,995,745
555,632
439,297
9,737,212
1,991,321
Quotas as established by action of the Inter-American Coffee Board on
March 11, 1943.
oOo-
for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemotion at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
-
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 exnressly 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 from any 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 Bank
in cash or other immediately available funds on
January 20. 1944______ .
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by 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 from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT ■
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday. Janaary 14« 1944______ .
I?
ickik
The Secretary.of the Treasury, by this public notice, invites tenders
for $
1.000.000«OCX) , or thereabouts, of ^
91 -day Treasury bills, "to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
January 20. 19Lk
» and will
*5*
, when the face amount will be payable without
vided.
The bills of this series will be dated
mature
April 20, 1944
wT"
interest. They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two- o ’clock p. m., Eastern War time,
Monday, January 17» 1944
Tenders will not be received at the Treasury Department, Washington-;-.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may riot be used;
Fractions
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 from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 2 percent rf the face
amount of Treasury bills applied for, unless the tenders are accompanied b y an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
\
TREASURY DEPARTMENT
Y/ashington
' -i- ,
>;• ; 4
"
......
FOR RELEASE, MORNING NEWSPAPERS,
Erida.y, January 14, 1944.
1-15.-44.
The Secretary of. the Treasury,' by this.- public- notice./
invites tenders for §1,000,000,TOO,' or Thereabouts, of 91-day
Treasury bills, to be issued on a discount basis under competi
tive and fixed-price bidding as hereinafter provided, . The bills
of this series will be dated January 20, 1944,, and will mature
April 20, 1.944, when 'the face amount will be payable without
interest,’ They will be issued in bearer form only, and in de
nominations of $1,000, §5,000, §10,000, §100,000, §500,000, and
§ 1 ,0 0 0 , 0 0 0 (maturity value)..
*
;
•Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two- o ’clock p.*- m . , Eastern War
time, Monday, January 17, 1944.
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 ex
pressed on.the basis of 100, with not more than, three decimals,
e* g., 99.925,
Fractions may not be used, .It is urged that '
tenders be made on the printed forms and forwarded in the spe
cial envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit; from incorporâted
banks and trust companies and from -responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by^ payment of 2_. percent of the face amount of Treas
ury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which pub
lic announcement will be made by the Secretary of the Treasury
of the amount and price range of accepted bids.
Those sub
mitting tenders will be advised of the acceptance or rejection
thereof.
The 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.
Sub
ject to these reservations, tenders for §100,000 or less from
any 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 Bank
in cash'or other immediately available funds on January 20, 1944.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, shall not
have any exemption, as such, and loss from the sale'or other
40-26
(Over )
-
2
-
d i s p o s i t i o n of T r e a s u r y bills s h all not h a v e a n y s p e cial t r e a t
ment, ;as such,, u n d e r F e d e r a l t a x Acts n o w or h e r e a f t e r enacted#
T he bills shall be subject t o estate,, inheritance, gift, or other
excise taxes, w h e t h e r F e d e r a l o.r ,State, but 'Uhallr be exempt f r o m
a l l t a x a t i o n n o w o r * h e r e a f t e r i m p osed oh the-■principal or i n t e r
est t h e r e o f - by any'State, or a n y of th e p o s s e s s i o n s ,of. t h e U n i t e d
■States, or by a n y . l o c a l t a x i n g authority,.
F o r - pur p o s e s of t a x a
t i o n the a m ount o f . d i s c o u n t at w h i c h T r e a s u r y h i l l s a re o r i g i
n a l l y s old by t he U n i t e d S t ates shall be c o n s i d e r e d to be i n t e r
est,
U n d e r Sections 42 a n d 117 (a) (1) of the. I n t e r n a l R e v e n u e
Code, as a m e n d e d by S e c t i o n 115 Qf t he R e v e n u e Act. of- 1941, t he
amou n t of discount at w h i c h bills issued hereunder' are sold shall
not be c o n s i d e r e d to a c c r u e until, s u c h bills shall be sold, r e
d e e m e d or' ot h e r w i s e d i s p o s e d of, and- s uch bills are ex c l u d e d fro m
c o n s i d e r a t i o n as ca p i t a l a s s e t s . • A c c o r dingly, the owner of T r e a s
u r y bills (other t h a n life 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 include^ in his income t a x r e t u r n only th e d i f f e r e n c e between
the ;p r i c e p a i d f o r s u c h bills, w h e t h e r on o r i g i n a l issue or' on
s u b s é q u e n t purchase, and t h e a m o u n t a c t u a l l y r e c e i v e d .either upon
sale or r e d e m p t i o n at m a t u r i t y d u r i n g t he taxable, .year f or w h i c h
t h e r e t u r n is made, as o r d i n a r y gain or loss,
'1 '
'
T r e a s u r y ^Department C i r c u l a r ITo, 418, as amendai, a n d this
notice, p r e s c r i b e . t h e terms of t h e T r e a s u r y bills a n d g o v e r n the
conditions of t h e i r issue.
C o p i e s of t he c i r c u l a r m a y be obtained
f r o m a n y Federal: R e s e r v e ‘
B a n k ’ or Branch,
-oOo-p
TREASURY DEPARTMENT
Washington
FOR "IMMEDIATE RELEA!
January— 14,
1
=
■Friday,
-- — ___
--f1943,
\
A
?
r
Press Service
Yo
Ko-
Eugene F, Roth has resigned as an assistant general counsel
in the Treasury Department, effective today, and will return to
private law practice in New York City, it was announced today^k^
Roth, a graduate of Columbia College
w.
*
and Columbia Law School, came to the Treasury Department last
March from the Department of Justice, where he served in the
Special War Policies Unit,
-o-
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Friday, J a n u a r y 14, 1944,
Eugene
counsel
F.
Roth lias r e s i g n e d as an a s s i s t a n t general
in the T r e a s u r y D epartment,
will r e t u r n
to p r i v a t e law p r a c t i c e
was a n n o u n c e d
Mr.
Press S e r vice
No. 40-27
effective
today, a n d
in N e w X o r k City,
It
today.
P.oth, a g r a d u a t e of C o l u m b i a C o l l e g e a nd Co l u m b i a
L a w School,
came
to the T r e a s u r y D e p a r t m e n t last M a r c h
f r o m the D e p a r t m e n t of Justice,
Special W a r Pol i c i e s Unit.
-oOo
w h e r e he
s e r v e d in the
TREASURY DEPARTMENT
FISCAL SERVICE
W A S H IN G T O N
BUREAU O F ACCOUNTS
O F F IC E O F T H E C O M M IS S IO N E R
January 7, 1944«
During the month of December, 1943, the following
market transactions took place in direct and guaranteed
securities of the Government:
Purchases
Sales
......... .
t4>&50,000
...... ...................
Net Purchases ••••<
100,000
*t 1 4 ,750.000 )
----------- y
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Saturday, Ja n u a r y 15, 1944.
Press S e rvice
No. 40-28
D u r i n g the m o n t h of December,
market
1943,
t r a n s a c t i o n s in direct a n d g u a r a n t e e d
s e c u rities of the G o v e r n m e n t for T r e a s u r y
i n v e s t m e n t a n d other a c c o u n t s r e s u l t e d in
net p u r c h a s e s
of $ 4 , 7 5 0,000,
M o r g e n t h a u a n n o u n c e d today.
-oOo-
Secretary
radio pro grant-3
greeribaum
Governor Ellis A m a l l of Georgia, Governor Coke R. Stevenson
of Texas and Governor Everett Saltonstall of Massachusetts*
O jS i
from their state c
the resources
s/
of their area/fco the war effort.
/Appearing on the program were Capt.
*(
?
A
J
Ronald Reagan, former screen actor, who portrayed«^5*sg0®** 0
^lEUthe-Hslil—ti'cxidh^ Bing Crosby, Ginny SHfiNppMP*Simms,
John Charles Thomas and Capt. Glenn IQ.Her and his Army Air
Forces band.
Musical background was provided by David
Broekman and his Treasury orchestra.
the announcer.
end
Conrad
'
greenbaum
radio program-2.
/
The program, "Let's All Back the Attack" also
brought to radio listeners the voiced of General Dwight
Bui'oprgjgT
Cnmmaodnr»in-Chi af af tho» bM
nf Op rrnntirrirj -ffm-n fldmi m l
Tfi^ffinhower,
Chester W. Nimitz, Supreme Commander-
/\
in-Chiefof the Pacific Fleet,
I The Secretary upset precedent in tJa»-playing Cv.
V
narrator, as this is believed to be the first time that a
cabinet officer has undertaken such a role.
In his part he
brought to "Private Jimmy Jones" a stirring picture of America's
home front at war.
The show was designed toaerc present the
questions which have been raised in the minds of soldiers,
some of
yhich the Secretary himself learned when he visited fighting
fronts in North Africa and Sicily, and to answer those questions
by a panoramic view of America's war effort.
\J te
lay in the mud of
night
answer whizzed a f ’Private Jones" as he
a South Pacific Isle foxhole, alone in a
of bursting mortars and grenades.
They whirred from the
production centers of the nations where tanks, guns, ships and
produced.
congregation
/ "Private Jones
of his little church in Williams Bay, Wisconsin.
1
^ "•The good American' is & & fighting to
preserve 'the good America'," the Secretaiy said. "That includes
baseball and hot dogs and the music you like."
more
A l ~ P ^ 7 -^ ? Y
v2t ^ >
*')
»radio pgoggaq}-!
greenbaum
L/ 0 ~ i^ ^ * > u » y ^ * ^ '
$ p p p
.
^
9
,< ? - / ? v y
hjM) tyr'Jt'f 'J*a4jm**
x t3Jj >
I S^^SSBCSBy5^«iflF^,
v
AscLs ringleaders of hate throughout the
Os f X
world should be strung up and hang/intil dead, Secretary of the TreasuryHenry Morgenthau Jr. declared last night in a four-network radio
broadcast opening the Fourth War Loan.
1 The answer to the question of what to do
with the men who started the war l i n A f e Russia, the Secretary said.
I "Thq/ Russians are removing some of the
worst stains from the face of this earth by stringing¡/the ringleaders
n
/t
of hate ¡0 and letting them hang there until they^ ape dead,n he said.
C lA xtX 1 st &JL
*
[ T h e Secretary was narrator on a musico-
dramatic program heard between 9 and 10 P. M. over the Columbia
Broadcasting System, Mutual Broadcasting System, the Blue Network and
the National Broadcasting Company*
(^The program also featured the first
interview conducted with a pilot flying the newest secret weapon of
war, the jet-propulsion,plane whose successful primary tests were
announced only a few days ago by the Bell Aircraft Corporation. Lt. Col.
/lüsl Slater of the Array Service Forces, speaking from a restricted area
in a plane-to— earth three—and—a—half minute conversation^ quizzed the
pilot about his reactions.
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWS P A P E R S ,
Tuesday, J a n u a r y 18, 1944.
Press Service
No. 40-29
N e w York, J a n u a r y 1 7 i
A x i s r i n g l e a d e r s of hate t h r o u g h
out the w o r l d should be s t rung up a n d h a n g e d u n til dead,
S e c r e t a r y of the T r e a s u r y H e n r y M o r g e n t h a u , Jr., d e c l a r e d
last n i g h t in a f o u r - n e t w o r k radio b r o a d c a s t o p e n i n g the
F o u r t h W a r Loan.
The a n s w e r to the q u e s t i o n of w h a t to do w i t h the m e n
who s t a rted the w a r is o f f e r e d b y Russia, the S e c r e t a r y
said.
?,The Russians are r e m o v i n g some of the w o r s t stains
f r o m the face of this e a r t h b y s t r i n g i n g u p the r i n g l e a d e r s
of hate and l e t t i n g them h a n g there u n til the y are d e a d , ”
he said.
?,T h a t is the final a s s u r a n c e of the future of
free m e n ."
The S e c r e t a r y was n a r r a t o r on a m u s i c o - d r a m a t i c p r o g r a m
h e a r d b e t w e e n 9 a n d 10 P. M. over the C o l u m b i a B r o a d c a s t i n g
System, Mutu a l B r o a d c a s t i n g System, the B l u e N e t w o r k a n d
the N a t i o n a l B r o a d c a s t i n g Company-.
The p r o g r a m also f e a t u r e d the first i n t e r v i e w c o n
d u c t e d w i t h a p i l o t flying the n e w e s t secret w e a p o n of war,
the j e t - p r o p u l s i o n plane w h o s e successful, p r i m a r y tests
w ere a n n o u n c e d o n l y a f e w days ago b y the Bel l A i r c r a f t
C o r p oration.
Lt. Col. W i l l i a m S l a t e r of the A r m y S e r v i c e
Forces, sp e a k i n g fro m a r e s t r i c t e d area in a p l a n e - t o - e a r t h
t h r e e - a n d - a - h a l f m i n u t e conversation, q u i z z e d the pilot
a b o u t h i s reactions.
The program, ’’L e t ’s All B a c k the A t t a c k ” als o b r o u g h t
to r a dio li s t e n e r s the voice of General Dwig h t D. E i s e n h o w e r ,
C o m m a n d e r - i n - C h i e f of the A l l i e d Forces in the E u r o p e a n
T h e a t e r of O p e r a t i o n s f r o m London, and A d m i r a l C h e s t e r W.
Nimitz, S u p r e m e C o m m a n d e r - i n - C h i e f of the P a c ific Fleet.
The S e c r e t a r y u p s e t p r e c e d e n t in p l a y i n g a narrator,
as this is b e l i e v e d to be the f i r s t time that a C a b i n e t
o f f i c e r has u n d e r t a k e n such a role.
In his part he b r o u g h t
to ’’Pr i v a t e J i m m y J o n e s ” a st i r r i n g p i c t u r e of A m e r i c a ’s
home f r o n t a t war.
-
2
-
The show w as d e s i g n e d to p r e s e n t the q u e s t i o n s w h i c h
have b e e n r a i s e d in the m i n d s of soldiers, some of w h i c h the
S e c r e t a r y h i m s e l f l e a r n e d w h e n he v i s i t e d f i g h t i n g fronts
in N o r t h A f r i c a a n d Sicily, a n d to a n s w e r those q u e s t i o n s b y
a p a n o r a m i c v i e w of A m e r i c a ’ s w a r effort.
The a n s w e r w h i z z e d at "Private J o n e s ” as he l a y in t h e '
m u d of a South P a c i f i c Isle foxhole, a l o n e in a n i g h t of
b u r s t i n g m o r t a r s a n d grenades.
T h e y w h i r r e d f r o m the p r o
d u c t i o n centers of the n a t i o n s w h e r e t a n k s , guns, ships a n d
shells ar e b e i n g created; out of farms w h e r e essential food
is produced.
T h r o u g h a u n i q u e radio e n g i n e e r i n g h o o k - u p
"Private J o n e s ” saw far a w a y spots in A m e rica, i n c l u d i n g
the c o n g r e g a t i o n of his little c h u r c h in W i l l i a m s Bay,
Wisconsin.
" ’The goo d American* is f i g h t i n g to p r e s e r v e ’ the g o o d
A m e r i c a ’ ,” the S e c r e t a r y said.
"That i n c l u d e s b a s e b a l l
and hot dogs a nd the m u s i c y o u l i k e . ”
”Cut i n t o ” the p r o g r a m w ere G b v e r n o r A r t h u r B. L a n g l i e
of W a s h i n g t o n ; G o v e r n o r E l lis A m a i l of Georgia, G o v e r n o r
Coke R. S t e v e n s o n of Texas a nd G o v e r n o r E v e r e t t S a l t o n s t a l l
of M a s s a c h u s e t t s .
S p e a k i n g f r o m their state capitols, all
p l e d g e d the r e s o u r c e s of t h e i r a r e a s to the w a r effort.
A p p e a r i n g on the p r o g r a m wer e Capt. Ronald Reagan,
form e r screen actor, w h o p o r t r a y e d "Private J o n e s ” ; B i n g
Crosby, G i n n y Simms, John C h a r l e s T h omas a nd Capt. G l e n n
M i l l e r a nd his A r m y A i r Forces band.
Musical background
was p r o v i d e d b y D a v i d B r o e k m a n a n d his T r e a s u r y orchestra.
C o n r a d N a g e l was the ann o u n c e r .
- 0O 0-
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday« January 1B t 1944.
Press Se
e
'Ô "3Û
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury bills to be dated January 20 and to
mature April 20, 1944, which were offered on January 14, were opened at the Federal Re
serve Banks on January 17,
The details of this issue are as follows:
Total applied for - $2,273,537,000
Total accepted
- 1,017,180,000
Average orice
(Includes #59,463,000 entered on a fixed-price
basis at 99.905 and accepted in full)
- 99.905/ Equivalent rate of discount approx. 0.374* per annum
Range of accepted competitive bids:
High
Low
- 99.925 Equivalent rate of discount approx. 0.297$ per annum
- 99.905
w
n
m
n
n
0 .376 $ *
**
(33 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
•
74,340,000
1,443,962,000
66.152.000
47.220.000
26.962.000
23.095.000
309.459.000
60.455.000
23.628.000
38.544.000
10 865.000
148.855.000
f
*2,273,537,000
*1 , 017 , 180,000
.
TOTAL
43,102,000
572.222.000
34.227.000
30.336.000
21.234.000
16.194.000
113.371.000
28.955.000
13.578.000
34.893.000
9,458,000
99.610.000
TREASURY DEPARTMENT
Washington
F OR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, J a n u a r y 18, 1944.
1-17-44
Press Se r v i c e
No. 4 0 - 3 0
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d las t e v e n i n g that the
tenders f o r $ 1 , 0 0 0 , 0 0 0 , 0 0 0 ,
bills
were
o r thereabouts,
of 91-day Treasury
to be d a t e d J a n u a r y 20 a n d to m a t u r e A p r i l 20, 1944,
o f f e r e d on J a n u a r y 14, w e r e o p e n e d a t the F e d eral
which
Reserve
B a nks on J a n u a r y 17.
T he d e t a i l s
of this
issue are as follows;
T o t a l a p p l i e d for - $ 2 , 2 7 3 , 5 3 7 , 0 0 0
Total accepted
1 , 0 1 7 , 1 8 0 , 0 0 0 (includes $ 5 9 , 4 6 3 , 0 0 0
e n t e r e d on a fixed-prices b a s i s at 9 9 , 9 0 5 a n d a c c e p t e d in
full)
Average price
- 99.905/ Equivalent
0.374$ per annum
Range of a c c e p t e d c o m p e t i t i v e b i d s *
High
- 99,925
0.297%
- 99*905
0.376%
Low
rate o f d i s c o u n t approx.
E q u i v a l e n t rate o f d i s c o u n t approx.
per apnum
E q u i v a l e n t rate o f d i s c o u n t approx.
per annum
(33 p e r c e n t o f the a m o u n t b i d for at the l o w p r i c e was accepted)
Federal Reserve
District
T o tal
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
C h icago
St, L o u i s
Minneapolis
Kansas C i t y
Dallas
S an F r a n c i s c o
$
$
TOTAL
74,340,000
1,443,962,000
66.152.000
47.220.000
26.962.000
23.095.000
309.459.000
60,455*000
23.628.000
38.544.000
10.865.000
148.855.000
$2,273,537,000
-oOo-
43,102,000
572.222.000
34.227.000
30.336.000
21.234.000
16.194.000
113.371.000
28.955.000
13.578.000
34.893.000
9,458,000
99.610.000
$1,017,18®,000
NAME OF CORPORATION AND OFFICERS OR EMPLOYEES
CALENDAR
OR FISCAL
YEAR ENDED
SALARY
COMMISSION
BONUS
OTHER
COMPENSATION
TOTAL
MICHIGAN
GIFEELS & VALLET, INC.
Giffels, R. F.
Vallet, V. E.
12/3 l A l
$ 40,810.02
75,000.00
# 50,000.00
175,000.00
I 9 0 ,8 1 0 .0 2
250,000.00
NEW YORK
CRUCIBLE STEEL COMPANY OF AMERICA
Hufhagel, F. B.
12/31/41
150,000.00
150,000.00
133.354.23
133.354.23
133.354.23
133.354.23
133.354.23
133.354.23
OHIO
JACK k HEINTZ, INC.
Heintz, Ralph M.
Jack, Wm. R.
Jack, Wm* S.
Note?
#33,354.23 paid to each of the officers on December 20, 1941 was charged as compensation
in our tax return filed for the fiscal year ended October 31, 1941. However, upon examination by the Bureau of Internal Revenue, it was alleged that these payments were not
a proper accrual for such fiscal year. Although representatives of this company did not
agree with such findings, to effect a settlement for such fiscal year, these sums were
eliminated as an accrual for the fiscal year 191+1 and were included as compensation paid
or accrued for the fiscal year 191*2 .
JACK k HEINTZ, INC.
Heintz, Ralph M.
Jack, Wm.. R.
Jack, Wm. S.
Note:
10/3y 4i
10/31/42
116.645.77
116.645.77
116.645.77
116.645.77
116.645.77
116.645.77
#33.354.23 paid on December 20, 1941 to each of the above listed offioers was oharged
on our books to the earnings of our fiscal year ended Ootober 31» 1941. However, due
to the allegations of the Bureau of Internal Revenue that such sum was not a proper
accrual for such fiscal year, these amounts were included in our tax return for the
fiscal year ended October $1, 19lj2 as compensation paid or accrued to such officers
for that year.
1.
REPORT OF PAYMENTS OF SALARY, COMMISSION,
BONUS OR OTHER COMPENSATION PAID IN
EXCESS OF $75,000.00 COMPILED FROM
INCOME RETURNS, SCHEDUIE F-l, FILED
FOR THE YEAR 19^1 AND FISCAL YEARS
ENDED IN I9I4.I AND 19l£
SUPPLEMENTAL NO. 2
TREASURY DEPARTMENT
W A S H IN G TO N 25
O F F IC E O F
COMMISSIONER OF INTERNAL REVENUE
A D D R E S S R E P L Y TO
C O M M IS S IO N E R O F IN T E R N A L REVE N U E
A N D R E F E R TO
ITjRecïDLS
MEMORANDUM for Mr. Charles Sohwar»,
J A N 1 7 1943
Director of Public Relations,
Treasury Department.
There is transmitted herewith a supplemental Report of Payments
of Salary, Commission, Bonus or Other Compensation paid in excess
of 175,000.00, compiled from income returns, Schedule F-l, for the
year 191+1 and fiscal years ended in 191+1 and 191+2.
Enclosure
TREASURY DEPARTMENT
Washington
POR RELEASE» MORNING- NEWSPAPERS
Wednesday, January 19% 19*4*4-
Press Service
^°*
A supplemental list of six:individuals who received from corporations
compensâtitn in excess of $75,000 for personal services in the calendar
year 19*4-1 or fiscal year ending in 19*42 was made public today by
Henry Morgenthan, Jr., Secretary of the Treasury.
The publication, made in conformance with a provision of the
Internal Revenue Code, augments an earlier listing of several hundred
names last October.
The list comprises large corporations which requested, and were
granted, additional time in filing their voluminous income tax returns.
, Under the code, the Secretary of the Treasury is required by
Section 1*4-8 (f), as amended by Section *407 of the Revenue Act of 1939,
to make public the names of such individuals as were reported by em
ploying corperations in their income tax returns.
The list compiled
shows the amounts paid to officers and employees by reporting corpora
tions in the form of salary, commission, bonus, or other compensation
for personal services.
Section 1*4-8 (f) of the Internal Revenue Code, as amended by
Section *407 of the Revenue Act of 1939. is as follows?
"Compensation of Officers and Employees; — ** Under
regulations prescribed by the Commissioner with the approval
of the Secretary, every corporation subject to taxation
under this chapter shall, in its return, submit a list
of the names of all officers and employees of such
corporation and the respective amounts paid to them during
the taxable year of the corporation by the corporation
as salary, commissions bonus, or other compensation for
personal services rendered, if the aggregate amount so
paid to the individual is in excess of $75.000,
i
-
2
-
,rThe Secretary shall compile from the returns made
a list containing the names of, and the amounts paid to,
each such officer and employee and the name of the
paying corporation and shall make such list available
to the public. It shall be unlawful for any person to
sell, çffer for sale, or circulate, for any consideration
whatsoever, any copy or reproduction of any list, or part
thereof, authorized to be made public by this Act or by
any prior Act relating to the publication of information
derived from income tax returns; and any offense against
the foregoing provision shall be a misdemeanor and be
punished by a fine not exceeding $1,000 or by imprisonment
not exceeding one year, or both, at the discretion of the
court; provided, Tha/t nothing in this sentence shall be
construed to be applicable with respect to any newspaper,
or other periodical publication entitled to admission to
the mails as second-class matter,H
The names of the corporations and of the officers and employees
who received compensation in excess of $75»000, as reported to the
Secretary by the Bureau of Internal Revenue, are as follows;
name of corporation a nd officers o r employees
CALENDAR
OR FISCAL
YEAR ENDED
SALARY
COMISSION
BONUS
OTHER
COMPEN
SATION
TOTAL
MICHIGAN
GIFFELS & VALLET, INCGiffels, R. F.
Vallet, V. E.
12/3l/Ul
*K),.810..02
7 5 ,000*00
50 ,000.00
1 7 5 ,000.00
90,810.02
250 ,000.00
NEW YORK
CRUCIBLE STEEL COMPANY OF AMERICA
Hufnagel, F. B.
12 /31/Ul
150 ,000^00
150 ,000.00
13 3 »354.23
133.354.23
133*354.23
133*354-23
133*354.23
OHIO
JACK & HEINTZ, INC.
Heintz, Ralph M.
Jack, Wm. R.
Jack, Wm. S.
Note:
133.354.23
$33.354.23 paid to each »f the officers on December 20 , 1941 was charged as compensation
in our tax return filed for the fiscal year ended October 31, 194l. However, upon examination by the Bureau of Internal Revenue, it was alleged that these payments were not
a proper accrual for such fiscal year. Although representatives of this company did not
agree with such findings, to effect a settlement for such fiscal year, these sums were
eliminated as an accrual for the fiscal year 19^1 and were included as compensation paid
or accrued for the fiscal year 19 *+2 .
JACK & HEINTZ, INC.
Heintz, Ralph M.
Jack, Wm. R.
Jack, Wm. S.
Uote:
10/31/41
10 /31/^2
116,6^5.77
116 .645.77
1 1 6 .645.77
$33,354.23 paid on December 20, 1941 to each of the above listed officers was charged
on our books to the earnings of our fiscal year ended October 31, 1941. However, due
to the allegations of the Bureau of Internal Revenue that such sum was not a proper
accrual for such fiscal year, these amounts were included in our tax return for the
fiscal year ended October 31, 19^2 as compensation paid or accrued to such officers
fcr that year.
1 16 .645.77
116.645.77
116*645.77
t
Y û
>
3
^
FOR IMMEDIATE RELEASE,
January 18. 1944»
The Bureau of Customs announced today preliminary figures shoving the quan
tities of coffee authorised for entry for consumption under the quotas for the
12 months commencing October 1» 1943, provided for in the Int eivAmerican Coffee
Agreement, proclaimed by the President on April 15, 1941, as follows:
Country of Production
:
.
:
: Ç (Pounds) 1/
:
Authorized for entry
______ for consumption
: )As of (Date) : (Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
1/
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87*302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Jan* 8, 1944
h
R
it
it
R
R
ii
R
R
H
H
R
H
R
278,191,892
137,227,811
2,472,013
2,717,052
4,146,290
11,240,116
2,065,428
9,703,281
4,486,753
1,336,909
14,884,806
555,632
438,035
9,972,647
1,991,331
Quotas as established by action of the Inter-American Coffee Board on
January 12, 194U.
-oOo—
- 2 -
Commissioner Hannegan explained that the effect of the new policy on
1943 payments is as follows :
1*
Salesmen earning commissions based on their own individual sales—
as a practical matter, the new policy makes no change in the compensation
status of these employees since the former dollar limit rule was suspended
in these cases*
However, these employees will now be reassured that the
dollar limit has been formally revoked, as to employees whose rate of
commission, and base salary has not been changed*
2.
Executives, branch managers and others earning over-riding
commissions or percentage bonuses— employers are authorized to adjust any
1943 payments in accord with the new policy*
For example, if an employee
in 1943 was entitled by contract or established policy to receive a percentage
bonus amounting to $1,000 but was paid only $900 because of the former regula
tions, he may now be paid the remaining $100 without formal approval provided
that no change has been made in the percentage, method of computation, or
base salary*
If the percentage, method of computation or base salary has
changed and the employer believes an adjustment is warranted, he may apply
for a ruling to the field office of the Salary Stabilization Unit of the
Bureau of Internal Revenue, in the region in which "the employer has his
principal place of business.
- 0 -
Advance Release for
morning papers of
Thursday, Jan.H*, 1944
¿25
Press Service
Robert E. Hannegan, Commissioner of Internal Revenue, clarified today
the new salary stabilization policy which governs payments by employers of
comissions, bonuses and other percentage-type compensation to employees, and
extended the policy to cover 1943 as well as 1944 and subsequent years.
The new policy for 1944 was announced py the Director of Economic >
Stabilization on December 30, 1943*
Commissioner Hannegan has since request^
and received authority to harmonize the 1943 regulations with the 1944 policy
in order to prevent discrimination and hardship.
Formal regulations embodying
the changes are being drafted, but the new policy is effective immediately •
Since most 1943 payments already have been made, Commissioner Hannegan
advised employers they may make supplementary payments to adjust 1943 payments to the new poliqy.
The new policy permits employers to pay - without the formality of
obtaining approval - any percentage-type compensation earned by employees
under a contract or established policy of the employer, provided no change
base salary (if any) since the beginning of the salary stabilization program
(Oct. 3, 1942, in the case of salaries over $5,000 per year; Oct. 27, 1942,
in the case of salaries under $5,000 -which are under the Commissioner* s
jurisdiction)•
* These percentage types of compensation include commissions, bonuses
and similar types of payments Ttfiich are based on a percentage of sales,
salary, profits, volume, new business or similar factors.
Under the above conditions, the new policy permits payment of the
percentages without regard to the dollar amount.
The new policy rescinds
former provisions which limited the dollar amounts to the.level of 19 4 1 —4 2 .
-¿i,
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, January 20, 1944.
"
Press Service
No. 40-33
Robert E. Hannegan, Commissioner
Internal Revenue, clarified
today the new salary stabilization policy which governs payments by
employers of commissions, bonuses and other percentage-type compensation
to employees, and extended the policy to cover 1943 as well as 1944 and
subsequent years*
The new policy for 1944 was announced by the Director of Economic
Stabilization on December 30, 1943* Commissioner Hannegan has since
requested and received authority to harmonize the 1943 regulations with
the 1944 policy in order to prevent discrimination and hardship* Formal
regulations embodying the changes are being drafted, but the new policy
is effective immediately#
Since most 1943 payments already have been made, Commissioner
Hannegan advised employers they may make supplementary payments to ad
just 1943 payments to the new policy#
The new policy permits employers to pay - without the formality of
obtaining approval - any percentage-type compensation earned by employees
under a contract or established policy of the employer, provided no
change has been made in the percentage, method of computation> or the
employee’s base salary (if any) since the beginning of the salary stabil
ization program (Oct. 3, 1942, in the case of salaries over $5,000 per
year ; Oct* 27, 1942, in the case of salaries under $5,000 which are under
the Commissioner* s jurisdiction)*
These percentage types of compensation include commissions, bonuses
and similar types of payments which are based on a percentage of sales,
salary, profits, volume, new business or similar factors.
Under the above conditions, the new policy permits payment of the
percentages without regard to the dollar amount. The new policy rescinds
former provisions which limited the dollar amounts to the level of 194142.
Commissioner Hannegan explained that the effect of the new policy
on 1943 payments is as follows:
1# Salesmen earning commissions based on their own individual
Sales— as a practical matter, the new policy makes no change in the com
pensation status of these employees since the former dollar limit rule
was suspended in these cases. However, these employees will now be re
assured that the dollar limit has been formally revoked, as to employees
whose rate of commission, and base salary has not been changed.
u
- z -
2. Executives, branch managers and others earning over-riding
commissions or percentage bonuses-—employers are authorized to adjust
any 1943 payments in accord with the new policy. For example* if an
employee in 1943 was entitled by contract or established policy to
receive a percentage bonus amounting to $1*000 but was paid only $900
because of the former regulations* he may now be paid the remaining $100
without formal approval provided that no change has been made in the per
centage, method of computation* or base salary. If the percentage,
method of computation or base salary has changed and the employer believes
an adjustment is warranted* he may apply for a ruling to the field office
of the Salary Stabilization Unit of the Bureau of Internal Revenue, in
the region in which the employer has his principal place of business.
- 0 -
Mart**!
f
— %
y tju u u u
V
response to inquiries from the press, today made the
following statement:
/VKP1
are proud to pay
^ jJ L ^
their taxes to^win the war.
The Treasury, which deals with
millions and millions of taxpayers, has constant evidence
of this patriotic spirit*
"As it should be in a Democracy, taxes are levied by
a Congress elected by the people.
We in the Treasury are
charged by law with collecting these taxes, and we -sniSr'
fulfil that duty.
IV
"Everyone has a right to advocate changes in the law
by due legislative process.
"However, to advise citizens to refuse to pay taxes—
particularly in time of war--smacks of disloyalty.
"Such an attitude is especially unworthy of % person $
profiting from war contracts."
TREASURY DEPARTMENT
Washington
MEMO POR THE PRESS
Secretary Morgenthau,
January 19, 1944
in response to inquiries from
the press, today made the following statement:
’’Most Americans are proud to pay their taxes to help
win the war.
The Treasury, which deals with millions and
millions of taxpayers, has constant evidence of this
patriotic spirit.
”As it should be in a Democracy, taxes are levied by
a Congress elected by the people.
We in the Treasury are
charged by law with collecting these taxes, and we must
fulfill that duty.
’’Anyone or everyone has a right to advocate changes
in the law by due legislative process*
’’However, to advise citizens to refuse to pay taxes-particularly in time of war--smacks of disloyalty*
’’Such an attitude is especially unworthy of persons
profiting from war contractsf”
-0 O 0 -
40-34
for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or lpss.
Treasury Department Circular No. 418, as amended, and.this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
r a m
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders Will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury exnressly 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 from any 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 Bank
in cash or other immediately available funds on
January 27, 1944
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions, of
the United States, or by anjr local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117* (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
9 J
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday. January 21. 1 9 L L
m
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1,000 flftQrQOQ , or thereabouts, of ^
91_-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided.
January 27» 1944
, and will
$5*
, when the face amount will be payable without
The bills of this series will be dated
mature
April 27. 1
interest.
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Monday, January 24, 1944
.
w
Tenders will not be received at the Treasury Department, Washingtonr Each tender
closing hour, two o ’clock P. m., Eastern War time,
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the 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 from incorporated .banks and
trust companies and from resoonsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 2 percent ef the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Friday, ,January 21, 1944«
1-20-4,4
The Secretary of the Treasury,, by this publie notice,
invites tenders for $1,000,000,000, or thereabouts,, of 91-day
Treasury bills, to' be issued on a discount, basis under compet
itive and fixed-price bidding as hereinafter provided*
The
bills of this series will be dated. January 27, 1944, and will
•mature April 27, 1944, when the face amount will be payable
without interest*
They will be issued in bearer form only,
and in denominations of $1,000, $5,000, $10,000, $100,000,
$ 5 0 0 ,0 0 0 ,' and $1,000,000 (maturity v a l u e ).
•;
1 ■ Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o'clock p, m., Eastern War
time, Monday, January 24, 1944.
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 deci
mals, e. ‘g*, 99.925.
Fractions may not be used.
It is urged
that tenders be made on the printed forms ,and forwarded in the
special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor..
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 2 percent, of the face amount of Treas
ury bills applied for, unless the tenders are accompanied by
an express guaranty of payment by an incorporated bank or trust
company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which pub
lic announcement will be made by the Secretary of the Treasury
of the amount and price range of accepted bids*
Those sub
mitting tenders will be advised of the acceptance or rejection
thereof.
The 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.
Sub
ject to these reservations, tenders for $100,000 or less from
any 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 Bank
in cash or other immediately available funds on January 27, 1944.
40-35
(O v e r )
*2-
The income.derived from Treasury bills, whether interest
or gain-from thetsale dr other disposition of the bills, shall
not have any exemption, as such, and loss from the sale or
other disposition of Treasury bills shall not have any special
treatment, ;as .such,, under Federal tax Acts now or hereafter en
acted.
The bills shall be subject to estate, .inheritance, gift,
or other'.excise taxes, whether Federál or State, -but. shall, be
exempt.from, all. taxation now or hereafter imposed on the princi
pal, of interest thereof by any State, or any of the possessions
of the United States, or by any local taxing authority. . For
purposes of .taxation the amount of .discount at which Treasury
bills are originally sold by the United States shall be con
sidered to be interest.
Under Sections 42 and 117 (a) (1) of
the Internal Revenue Code, as amended by Section 115 of the
Revenue Act of 1941, the amount of discount at which bills
issued hereunder are sold shall not be considered to accrue
until such bills shall be sold, redeemed or otherwise disposed
of, and such bills are. excluded from consideration .as capital
assets. Accordingly, the .owner of Treasury bills (other than
life insurance companies), issued hereunder need include in his
income tax return only the difference between the price paid for
such bills,, whether on original issue or on subsequent purchase,
and the amount actually received either upon sale or redemption
at maturity during the taxable year for which the return is made,
as ordinary gain or loss.
Treasury Department Circular Do. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of.their issue.
Copies of the circular may be
obtained from any Federal Reserve Bank or Branch.
■Vo -
Secretary Morgenthau today expressed keen regret at
losing the services of Robert E. Hannegan, Commissioner of
Internal Revenue, who has resigned to become Chairman of
the Democratic National Committee.
"After serving a little more than a year as Collector
of Internal Revenue at St. Louis," Secretary Morgenthau
said, "Bob Hannegan was promoted to the great responsi
bility of the office of Commissioner of Internal Revenue
purely on merit and ability.
had been exceptional.
His record as a collector
He was not merely a good administrator
but he displayed in addition a remarkable talent for
inspiring those who worked under him with his own good
humor, his own energy and his own love of hard work*
"These abilities deserved a broader sphere than the
office of a Collector, and that*s why we brought him to
Washington.
Less than four months is not much time to make
a record in a job as big as that of the Commissioner of
Internal Revenue, but in that short time Commissioner
Hannegan has been able to demonstrate his ability to master
the work of that office and to give promise of making an
outstanding record there, as he had in the office of
Collector.
-'
,
v\ _
"The National Committee has taken from us a good man
whom we are very sorry to lose."
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Saturday, Ja n u a r y 22, 1944.
P r ess S e r vice
No. 40-36
S e c r e t a r y M o r g e n t h a u t o d a y e x p r e s s e d k e e n regret
at l o s i n g the services of Robert E. Hannegan, C o m m i s
sioner of Internal Revenue, w ho has r e s i g n e d to b e c o m e
C h a i r m a n of the D e m o c r a t i c N a t i o n a l Committee.
"After s e r v i n g a little m ore than a y e a r as C o l
l e c t o r of Internal Revenue at St. L o u i s , ” S e c r e t a r y
M o r g e n t h a u said, ?,Bob H a n n e g a n was promoted to the
g r e a t r e s p o n s i b i l i t y of the o f fice of C o m m i s s i o n e r of
Internal R e venue p u r e l y on m e r i t a n d ability.
His
r e c o r d as a c o l l e c t o r h a d b e e n exceptional.
He was
n ot m e r e l y a g o o d a d m i n i s t r a t o r , but he d i s p l a y e d in
a d d i t i o n a r e m a r k a b l e talent for i n s p i r i n g those who
w o r k e d u n d e r h i m w i t h his own g o o d humor, his own
e n e r g y a n d his own love of h a r d work.
"These a b i l i t i e s d e s e r v e d a b r o a d e r sphere than
the o f fice of a Collector, a n d t h a t ’s w h y we b r o u g h t
h i m to W a s h i n g t o n .
Less than four m o n t h s is n ot m u c h
time to m a k e a r e c o r d in a job as b ig as that of the
C o m m i s s i o n e r of Internal Revenue, but In that short
time C o m m i s s i o n e r H a n n e g a n has been abl e to d e m o n
strate his a b i l i t y to m a s t e r the w o r k of that office
a nd to g ive p r o m i s e of m a k i n g an o u t s t a n d i n g record
there, as he h a d in the office of C ollector.
"The N a t i o n a l C o m m i t t e e has taken f r o m us a goo d
m a n w h o m w e are very s o rry to l o s e . ”
oOo-
Federal Äeeerv« t o t e of Ä
to
reepeotive dietrieta, to 1 m
m
aUotîaimt noticts
receive peyaexit for ootea allotted, to toco delivery of noto» 00 foil-paid
irubsorlptioti» allotted, and they mgr le«*» feitod* receipt® pendln# delivery
of the definitive note*«
2*
The Secretory of the Treasury nay at m t tine, or from tisi» to tim»,
preecribe ®nppl««e*ïiel or assendatory role# teé redola tien» governing the
offering, «Tdeh «dll he eopannlealed proaptly to the federal iteerv® Berte«
f¡$ W# H U » »
Acting .Secretary of ti» frmmrsy*
Ill ä
4
M
»
lio n s of *1,000, #$,000, $30,000, *300,000 «to $1,000,030*
th J note# «IH not iff
l » t i l In reg istered fern*
$*
The note# « H I Imi « t i m e t to tto
gmmmX m¿púé.%imm of tto Treasury
nopAitwMKt, m m o r hereafter p reeerlb ed i, governing M M
in *
1*
toterlptleis» «ill
ü fÄ ü *
m m m xm m . km Aixm m m
bm received at ito Foderai Beserve task# iti Brasieto#
m â at tto ? m ® w y Dep*rt®**t, M m M
mifefsti totoorlptitoe for a w » t
msá th#
M M
bc U m u
of «m m U
m m
iuMnf
ì m
U UA
«, tot only the Fate » !
tr m m n 0«p»rtoent 1 » auitortcto to
m
my
ìm m
Urnmmnm Wmm
a# official agencies.
other#
then banking tcsittotlto« «ill not to persiitto to eater sitaerlptieit# except for
their «en aeeeimt*
a.
The Secretary of th® Treasury reserves the rig h t to re je c t any aubeeslp»
M en, in »hole o r la pan# to a llo t leu# then the n w l of »elee a l l i e d f e r , uto
to close the took# a# i# aay o r «01. «wtoorlptieft« a t any tie # «itfeaui n o tic e |
aay actism he say take in these *eqMM&* »toll, tee f im i.
tic a » , a l l «utocripU oaa f i n tee a llo tte d in f u ll.
m% pwm$ìlly npm
¿¿tejett to these »»serra-
äH etoeat föotlce# «H I tee «eat
alXotoent.
ir.
Xm
mû
tm m m
Payment a t par fo r note» a llo tte d to m ito e r m&X tee sto» oa o r before
fteteimry 1# 1944# o r a» la te r allefcnsnt, ato may tee «de- only ir Treasury C e rtifi
cates of Ito e b te te s s of te te » 4-1944, s to r in g Feteimiy 1, 1944# to lto «111 to
accepted a t p ar, m â should accompany the subscription*
f*. i
m
» f l Ä »
1« le f le to ! agent» of the ü n ttto S tate», Federal m#&rm Beide« arc
authorised ato requested to recele# subscriptions, to atoe allotm ent* to the
teaei# ato op to the mmomts .indicated by the Secretary of the Treasury to the
qkxtrd snrm
or mmax
0.90 PKRGKivr mmmrn m t & or m m m 0-1945
Oated M i hearing interest t r m Ftikrmr$- 1» 1944
Sue tiereh 1, 1945
vmmia
1944
Deparl&eni Olrmler fio. f|t
m m t»
Olii©© ©f ih© Seereiery»
$eahln«t©n» ¿MMUfyr 24» 1944.
riami Serri©#
d o r m e &t ih« Publio i*ebi
2« om xm
2*
The Seeretery o£ ih« T r m t m r p , p & r w t m % io ih« «u&hoarlijr ©f ih« $«©<md
liberty 1 « # àe%9 m
ih« Oniiad Stai««
fot««
ojT
ùwm a i
i m È % m attbaoription*» et par» Irosa ih* peopìe ©f
$mt m % m n f ih«
Inited Stai««» deeigmted 0.90 pereent
frmtmay
Sari«« ML945* Ia «§!»fig® for Trmamry Certiiimtaa ©I* Indebteibieaa ©f
Serio© A-1944* «Mttrtag Febrmry 1» 2944«
th» aitimi ef ih» offerii}* «ili he
limitari t© ih« &&mn% ©f aoofe ««turili* ©ertirimi«« ietatered «ad acaepted.
si. ìw oaira» or rara
1.
The ©eie» «IH be dateci Mmasgr 1» 1944» «ad «111 bear in terest X iw tta i
dote e t ih« m ie ©f 0.90 permisi per «©mie» p ap ale m e «eademml beale ©fi Sepie®ber 1» 1944» ani hareh 1» 1945* Tb«r «111 m itr e a rc ii 1» 2945» «od udii m % be
mb^eet io ©all f or redmpiimi prior io m U trlt*.
2* The Incora» derlmd t r m ilhe m ie« «hall be «©bjeei io a ll Federai tem a,
ma or teermfter iapoaed.
The noie« «bell be mfejeet t© ©«tate» inheritai*©#, g ift
©r ©User ««elee teme» »hether federai ©r Siete» bui «hall b© eaeapi Tre® e l i tara
ti©*} noe ©r l e m l k r lepoaed ©« ih« pttoelpel ©r internet thereef fegr et^ »mie»
©r any ©f ih© p©a«ee«i©»* ©f ihe Calieri Siete«* ©r by m y locai taxi®* imthority.
3.
Ih© »©tea v i l i be «©©©piatele te m m m depoaiia ©f pubi!« t^ sys»
They
«H I noi be ©©«©piatele In payswrii r f tem a.
4.
Beerer nei«« «Uh la u r e a i empecui atieehed « I li be l(Mnt«d 1» deaornim-
TREASURY PKPa RTMEHT
Washington
FOR RELEASE, WORKIMG KSWSPAPERS,
Monday, January 24« 1944«
Press Service
¿Y o
“
3
The Secretary of the Treasury today announced an offering, through the
Federal Reserve Banks, of 0.90 percent Treasury Motes of Series D-1945* open
on an exchange basis, par for par, to all holders of Treasury Certificates
of Indebtedness of Series A—1944, maturing February 1, 1944. The subscrip
tion books will remain open through Wednesday, January 26* This exchange
operation will be conducted outside of the Fourth tf&r Loan Drive, which
started last Tuesday, and the subscriptions received will not be a pari of
any quotas.
The notes will be dated February 1, 1944, and will bear interest from
that date at the rate of 0.90 percent per annum, payable on a semiannual
basis on September 1, 1944, and March 1, 1945. They will mature March 1,
1945* They will not be subject to call for redemption prior to maturity.
They will be issued in bearer form only, with two interest coupons attached,
in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000.
Pursuant to the provisions of the Public Debt Act of 1941, interest
upon the notes now offered shall not have any exemption, as such, under Fed
eral tax Acts now or hereafter enacted. The full provisions relating to
taxability are set forth in the official circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington, and should be accompanied by &
like face amount of the maturing certificates. Subject to the usual reser
vations, all subscription® will be allotted In full.
There are now outstanding 12,211,161,000 of the Series A-1944 certifi
cates.
The text of the official circular follows:
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S PAPERS,
Monday, J a n u a r y 24, 1944*
Press Service
No. 40-57
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d an
offering, t h r o u g h the Federal R e s e r v e Banks, of Q,9Q p e r
cent T r e a s u r y N o tes o f Series D-1945, o p e n on a n exchange
basis, par for par, to all h o l d e r s of T r e a s u r y C e r t i f i
cates of I n d e b t e d n e s s of Series A - 1 944, m a t u n i n g
Fe b r u a r y 1, 1 9 4 4 o The s u b s c r i p t i o n b o o k s wil l r e m a i n
open t h r o u g h W e d n e s d a y , J a n u a r y 26.
This excha n g e o p e r
a t i o n w i l l be c o n d u c t e d outside of the F b u r t h W a r L o a n
Drive, w h i c h st a r t e d last Tuesday, a n d the s u b s c r i p t i o n s
r e c e i v e d will not be a part of a n y quotas.
The n o t e s wil l be d a t e d F e b r u a r y 1, 1944, a n d will
b e a r i n t erest f r o m that date a t the rate of 0.90 p e r
cent per annum, p a y a b l e on a semiannual b a sis on
S e p t e m b e r 1, 1944, a nd M a r c h 1, 1945,
T h e y will m a t u r e
M a r c h 1, 1945,
T h e y will n o t be subject to call f or r e
d e m p t i o n p r ior to ma t u r i t y .
T h e y will be issued in
b e a r e r f o r m only, w i t h two i n t e r e s t coupons attached, in
d e n o m i n a t i o n s of $ 1 , 0 0 0 , $5,000, $10,000, $ 1 0 0 , 0 0 0 a nd
$1 ,000 ,000 .
Pu r s u a n t to the p r o v i s i o n s of the P u b l i c Debt Act
of 1941, i n t e r e s t u p o n the n o t e s n o w o f f e r e d shall not
have a n y exemption, as such, u n d e r Federal tax A cts n o w
or h e r e a f t e r enacted.
The full p r o v i s i o n s r e l a t i n g to
t a x a b i l i t y are set f o r t h in the o f f icial c i r c u l a r r e
l e a s e d today.
S u b s c r i p t i o n s wil l be r e c e i v e d at th# Federal R e
serve Banks a nd B r a n c h e s and at the T r e a s u r y Depa r t m e n t ,
W a s h i n g t o n , a n d s h o u l d be a c c o m p a n i e d b y a like face
a m o u n t of the m a t u r i n g certi f i c a t e s .
Su ject to the
u s u a l reser v a t i o n s , ail subsc r i p t i o n s wil l be a l l o t t e d
in full.
There ar e n o w o u t s t a n d i n g $ 2 , 2 1 1 , 1 6 1 , 0 0 0 o f the
Series A - 1 9 4 4 certi f i c a t e s .
The
text of the o fficial
circular
follows:
UNITED STATES OF AMERICA
0.90 PERCENT TREASURY NOTES OF SERIES D-1945
Dated and bearing interest from February 1* 1944 -
1944
Department Circular No. 732
.
___
Due March 1* 1945
TREASURY DEPARTMENT,
Office of thè Secretary,.
Washington; January 24, 1944.
Fiscal Service
Bureau of the Public Debt
-,
\
.
I. *OFFERING- OF NOTES
1.
The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act,' as amended, invites subscriptions, at par, from the people Of
the United States for notes of the Uuited States, designated 0.90 percent Treas
ury Notes of Series D-1945, in exchange for Treasury Certificates of Indebted
ness of Series A-1944, maturing February 1, 1944, The amount of the offering
will be limited to the amount of such maturing certificates tendered and ac
cepted.
. ...i.
’’ . 1^4,*
II.
I^CRlpilON OF NOTES
1. The notes will be dated February 1* 1944, and will bear interest from
that date at the-rate of 0.90. percent per annum, payable on a semiannual basis
on September 1, 1944, and March 1, 1945, They will mature Marph 1, 1945^ and
will not be subject to call for redemption prior to maturity,
2.
The income derived from the notes shall be subject to all Federal
taxes, now or hereafter imposed. The notes shall be subject to estate, in
heritance, 'gift or other excise taxes, whether federal or piate»- but shall be
exempt from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United States, or by any
local taxing'authority,
:
■
. ,*•
3.
The notes will be .acceptable to secure deposits of public moneys. They
will not be acceptable in payment of taxes.
•
4.
nations
Bearer notes with interest coupons attached will be issued in denomi-*
of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The notes will
not be issued in registered form.
5 . The notes will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States
-2-
III.
SUBSCRIPTION AND ALLOTMENT
1, Subscriptions will Le received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington. Banking institutions
generally may submit subscriptions for account of customers, but only the Fed
eral Reserve Ranks and. the Treasury Department are authorized té act as offi
cial agencies. Others; than banking instìtutìons:'.wÌll' not’b e •'pèrmjit'ted’to-'èntèr
subscriptions except for their own account.
2.
The Secretary of the Treasury reserves th.e(.right to reject' ,any, .sub
scription, in whole or in part, to allot less than the amount of notes applied
for, and to close the booksr as to.-.(any:ox.;all subscriptions at any time without
notice; and any action he may take in these respects shall be final, Subject
to these reservations,.all snb sc riptions ,will be.allotted., in full, Allotment
notices will #be' sent .out. prompt ^y.upbri 'aiiotment.*.
...
k , ’.
.
IT,
PAXMTW
1. Payment at par'for notes allotted hereunder must'be made .'on or before
February 1, 1944, or on later allotment, and may be made only in Treasury Cer
tificates of Indebtedness of Series A-1944, maturity February 1, 1944, which
will be accepted at par, -and should accompany the subscription*
V,
GENERAL PROVISIONS
1, As fiscal agents of the. United’States, Federal Reserve Banks are
authorized and' reouested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective districts* to issue allotment notices,
to receive payment for notes'allotted, to make delive.ry of notes on full^paid
subscriptions .allotted, and they may issue interim receipts pending delivery
of the definitive notes.
2,
The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing» .which .will be communicated promptly to. the Federal Reserve Banks,
d .'w . ’b e l l ,
Acting Secretary of the Treasury»
A d i a m o n d s m u g g l i n g case m o r e a k i n to
w a r v a r i e t y , ^ d e v e l o p e d ^ a t Miami,
a t t e m p t e d to s l i p in gems
Florida,
the old,
pre-
w h e n M a x G e l dzahl
v a lued a t 1 2 8 , 0 0 0 *
tenced in J u l y to a y ear a n d a d ay in prison,
He w a s s e n
and fined
#1 ,000.
D e s pite
travel,
the w a r t i m e
1 9 4 3 saw a s u b s t a n t i a l
such s m u g g l i n g at t e m p t s ,
1942
r e s t r i c t i o n on c o m m e r c e a n d
increase
c o m pared w i t h
in the v o l u m e of
the low l e vel o f
S e i z u r e s b y C u s t o m s o f all k i n d s of s m u g g l e d c o m
modities
t o t a l l e d 9,439, an
I n c r e a s e of 3,953.
5 , 7 4 6 s e i zures of s m u g g l e d liquor, a c c o u n t i n g
the increase#
be
However,
T h e r e wer e
for m u c h o f
the t r a f f i c in l i q u o r a p p e a r e d to
c o n f i n e d to i n d i vidual v i o l a t i o n s on the M e x i c a n b o rder,
w i t h n o o r g a n i z e d i l l i c i t traffic in e v i d e n c e *
T h e T r e a s u r y is due to r e c e i v e n e a r l y t h r e e - q u a r t e r s
of a m i l l i o n d o l l a r s
in r e v e n u e as a r e s u l t o f two C u s t o m s
u n d e r v a l u a t i o n eases
involving Honolulu businesses
d u c t e d b y Japanese.
The f i r m of Ohml S h e t e n was a s s e s s e d
c on
p e n a l t i e s of # 6 7 9 , 0 0 0 f or u n d e r v a l u i n g imports f r o m J a p a n
In t r a n s actions o c c u r r i n g b e f o r e Pearl Harbor.
claims o f # 3 9 , 0 0 0 w e r e m a d e ag a i n s t
Similar
the K a w a h a r a Com p a n y *
point machine
agents
tools#
In a n e u t r a l
to # 2 0 0 , 0 0 0 u p o n d e l i v e r y to G e r m a n
country.
a Swiss p u b l i c i t y man#
The trio w e r e W e r n e r F. T r i n l e r
H a r r y Strygler,
H a r r y Smith# a g e m cutter.
a gem merchant, and
V i o l a t i o n s of
the export control
a c t w e r e charged, a nd T r i n l e r w a s s e n t e n c e d in A u g u s t #
22 m o n t h s
to
in a Federal p e n i t e n t i a r y a n d f i n e d # 7 , 500;
S t r y g l e r was f i n e d # 4 ,000; a n d S m i t h was f i n e d #2 , 0 0 0 #
p o s i t i o n of a p r i s o n sentence wa s
im
suspended# a n d he was
p l a c e d o n p r o b a t i o n f o r three y e ars.
T h e 7 , 7 0 0 carats of g e m s w e r e
c o u n t r y on a n e u t r a l
mately were able
vessel# b ut
s l i p p e d o ut of this
the T r e a s u r y a g e n t s u l t i
to t r a c e the t ransaction#
a n d to e f f e c t
s u c c e s s f u l p r o s e c u t i o n of the trio.
W i t h F o r e i g n Fun ds C o n t r o l a g e n t s
a n d C u s t o m s of f i c e r s
i n v e s t i g a t i n g the
financial
aspects,
the e x p o r t control
features#
e v i d e n c e w a s d e v e l o p e d d u r i n g 1 9 4 5 tha t re s u l t e d
in the i n d i c t m e n t o f L e o n a r d J. A. S m i t o f H e w fork# a
re f u g e e D u t c h n a t i o n a l #
gems,
hands.
for t r a f f i c k i n g in the i n d u s t r i a l
some o f w h i c h f o u n d t h e i r way# a l l e g e d l y ,
into Axis
T h e i n d i c t m e n t o f E m i t was r e v e a l e d just a f t e r the
t u r n of the year.
A l s o I n v o l v e d in this case w a s
C h a s e H a t i o n & l Bank,
financial
the
on c h a r g e s g r o w i n g out of S m i t h s
o p e r a t i o n s w h i c h a l l e g e d l y w ere
in v i o l a t i o n o f
the P r e s i d e n t 1s o r d e r f r e e z i n g funds of n a t i o n a l s o f enemyo c c u p i e d countries*
• 2 -
P o l i c i n g o f financial a s s e t s
in this c o u n t r y of n a
tionals of e n e m y - o c c u p i e d c o u n t r i e s b y
the F o r e i g n Funds
Control«
A d d i t i o n of n e a r l y $41 m i l l i o n to
as a r e s u l t o f
the w a r t i m e r e v e n u e s
tax f r a u d i n v e s t i g a t i o n s b y the I n t e l l i g e n c e
U n i t o f the B u r e a u of Internal
Bevenue»
E f f e c t i v e a t t a c k b y the B u r e a u of N a r c o t i c s ,
c l o s e l y w i t h Cu s t o m s ,
working
on sources of i l l i c i t d r u g s d e v e l o p
ing In n e w d i r e c t i o n s a s a r e s u l t of t he War»
C h a r g e d w i t h a d m i n i s t e r i n g I m p o rtant f u n c t i o n s in the
field o f e c o n o m i c warfare,
trol were,
effort»
Customs a n d F o r e i g n Funds C o n
perhaps, m o s t d i r e c t l y a s s o c i a t e d w i t h the w a r
A p p e a r a n c e of t he m a g i c w o r d " d i a m o n d s ” in the
two m a j o r cases I n v e s t i g a t e d b y these a g e n c i e s
I n t e r e s t i n g f e a ture of the y e a r * s work*
is an
These were not
the s p a r k l i n g gem s of f e m i n i n e a d o r n m e n t so o f t e n the
stock in trade o f the p e a c e t i m e
international
They were
the less g l a m o r o u s *
diamonds,
a p p a r e n t l y n e e d e d d e s p e r a t e l y b y our enemies*
Details
of the
B. J. Shamhart,
b u t m o r e vital
smuggler*
i n d u strial
cases w e r e r e v e a l e d in reports o f
D e p u t y C o m m i s s i o n e r of C u s t o m s a n d
T. E. Ball, h e a d of the C o m p l i a n t
Section of Foreign
Funds Control*
T h r e e m e n p r o s e c u t e d in N e w Y o r k w e r e a l l e g e d to h ave
r un a $ 4 , 5 0 0 A m e r i c a n
i n v e s t m e n t In the "chips" u s e d to
-/m .
0 O o r \,
^>jr>
0
P r o b l e m s a r i s i n g f r o m t he W a r d e m a n d e d the a t t e n t i o n
of the Treasury* s six l a w e n f o r c e m e n t a g e n c i e s
Inc r e a s i n g e x t e n t d u r i n g 1943,
to a n e v e r
E l m e r Irey, C h i e f C o o r d i
n a t o r o f the i n v e s t i g a t i v e services,
r e p o r t e d to
Secretary
M o r g e n t h a u today*
F u n c t i o n i n g in m a n y c a ses w i t h r e d u c e d p e r s onnel,
agencies nevertheless
the m o r e n o rmal
the
c o n t i n u e d a l s o to e n force v i g o r o u s l y
functions r e l a t i n g to
the r e v e n u e s a n d the p r o s e c u t i o n s
the p r o t e c t i o n of
of frauds a g a i n s t the
Gove r n m e n t *
M a j o r e n f o r c e m e n t a c t i v i t i e s d u r i n g the y e a r included:
An Alcohol
Tax U n i t d r i v e
in l i q u o r w h i c h h a d resulted,
to s m a s h the b l a c k m a r k e t
as the year ended,
in scores
of i n v e s t i g a t i o n s a nd p r o s e c u t i o n s t h r o u g h o u t the country*
A S e c r e t Se r v i c e o f f e n s i v e a g a i n s t c o u n t e r f e i t e r s o f
r a t i o n stampsj a n d a p a r t i c u l a r l y e f f e c t i v e c a m p a i g n o f
the same a g e n c y to p r o tect
f r o m thieves a n d f o r gers
the
a l l o w a n c e and a l l o t m e n t checks g o i n g to m i l l i o n s of
d e p e n d e n t s of m e n in the Armed Services*
C l ose
persons and
s u p e r v i s i o n b y Customs of f i c e r s
of m o v e m e n t s of
shipments a c r o s s our b o r d e r s a n d at the p o r t s
to p r e v e n t the d e l i v e r y of i n f o r m a t i o n o r ess e n t i a l
modities
to h a n d s f r i e n d l y to the enemy.
com
xi
Sfci
2
C h a r g e d w i t h a d m i n i s t e r i n g i m p ortant f u n c tions in the
field of e c o n o m i c warfare, C u s toms a n d F o r e i g n Funds C o n
trol were, perhaps, m o s t d i r e c t l y a s s o c i a t e d w i t h the w a r
effort.
A p p e a r a n c e of the m a g i c w o r d "diamonds" in the
two m a j o r cases i n v e s t i g a t e d b y these a g e n c i e s is a n i n t e r
e s t i n g feature of the year* s work.
These wer e not the
spa r k l i n g gems of f e m inine a d o r n m e n t so o f t e n the- s t o c k in
trade of the p e a c e t i m e i n t e r n a t i o n a l smuggler.
T h e y were
the less glamorous,, bu t m o r e vital i n d u s t r i a l diamonds,
a p p a r e n t l y n e e d e d d e s p e r a t e l y b y our enemies.
D e t a i l s of
the cases w e r e r e v e a l e d i n reports o f E. J. Shamhart,
D e p u t y C o m m i s s i o n e r of C u stoms and T . E . Ball, hea d of
the C o m p l i a n c e S e c t i o n of F o r e i g n Funds Control.
Three m e n p r o s e c u t e d in N e w Y o r k w e r e a l l e g e d to hav e
run a $ 4 , 5 0 0 A m e r i c a n i n v e s t m e n t in the "chips-’ u s e d to
point m a c h i n e tools, to $ 2 0 0 , 0 0 0 u p o n d e l i v e r y to G e r m a n
a g ents in a ne u t r a l country.' The trio w e r e W e r n e r F,
Trinler, a Swiss p u b l i c i t y man, H a r r y Strygler, a: g e m m e r
chant, a n d H a r r y Smith, a g e m cutter»
V i o l a t i o n s of the
export control a ct were charged, a nd T r i n l e r was sen t e n c e d
in August, to 22 m o n t h s in a Federal p e n i t e n t i a r y and
f i ned $7,500; S t r y g l e r was fined $4,000; a n d S m i t h was
fined $2,000, i m p o s i t i o n of a p r i s o n sentence was suspended,
a n d he was p l a c e d on p r o b a t i o n f o r three years.
The 7 , 700 carats of gems w e r e s l i p p e d out of this
c o u ntry on a neutral vessel, but the T r e a s u r y a g e n t s u l t i
m a t e l y w e r e able to trace the transaction, a n d to effe c t
s uccessful p r o s e c u t i o n of the trio.
W i t h F o r e i g n Funds Co n t r o l a g e n t s i n v e s t i g a t i n g the
financial aspects, a n d C u stoms of f i c e r s the export control
features, evidence was d e v e l o p e d d u r i n g 1943 that r e s u l t e d
in the ind i c t m e n t of L e o n a r d J. A. Smit of N e w York, a
re f u g e e D u t c h n a t i onal, fo r t r a f f i c k i n g in the industrial
gems, some of w h i c h f o u n d their way, a l l e gedly, into Axis
hands.
The i n d i c t m e n t of Smit was r e v e a l e d just a f t e r the
turn of the year.
Also i n v o l v e d in this case was the
Chase N a t i o n a l Bank, on charges g r o w i n g out of S m i t ’s
f i n a n c i a l o p e r a t i o n s w h i c h a l l e g e d l y were in v i o l a t i o n of
the P r e s i d e n t ’s o r der f r e e z i n g funds of n a t i o n a l s of enemyo c c u p i e d countries, .
A d i a m o n d s m u g g l i n g case m o r e a k i n to the.
w a r v a r i e t y was d e v e l o p e d b y Customs agents at
Florida, v.-hen M a x G e l d z a h l e r a t t e m p t e d to slip
u e d at :$ 2 3 5OCOr>
He w as s e n t e n c e d in J uly to a
day in prison, and f i ned $1,000,
old, p r e
Miami,
in gems v a l
year and a
3
D e s p i t e the w a r t i m e r e s t r i c t i o n on commerce a n d
travel, 194 3 saw a s u b s tantial i n c rease in the volume of
such s m u g g l i n g attempts, com p a r e d w i t h the l ow level of
1942*
Se i z u r e s b y C u s toms of all k i nds of s m u g g l e d c o m
m o d i t i e s t o t a l l e d 9,439, an in c r e a s e of 3,953,
There were
5,746 seizures o f sm u g g l e d liquor, a c c o u n t i n g for m u c h of
the increase.
However, the traffic in liqu o r a p p e a r e d to
be c o n f i n e d to individual v i o l a t i o n s on the M e x i c a n border,
w i t h no o r g a n i z e d I l licit traffic in evidence.
The T r e a s u r y is due to receive n e a r l y t h r e e - q u a r t e r s
of a m i l l i o n dollars in revenue as a r e s u l t of two Customs
u n d e r v a l u a t i o n cases i n v o l v i n g H o n o l u l u b u s i n e s s e s c o n
d u c t e d by Japanese.
The firm of Ohmi S h o t e n was a s s e s s e d
p e n a l t i e s of $ 6 7 9 , 0 0 0 for u n d e r v a l u i n g imports f r o m J a pan
in t r a n s a c t i o n s o c c u r r i n g b e f o r e Pearl Harbor#
Similar
claims of $ 3 9 , 0 0 0 w e r e m a d e a g a i n s t the K a w a h a r a Company.
-oOo
/
Bremerton, Washington,
of a co m p l e t e p l a n t
b o g u s $ 1 0 a n d $ 2 0 notes*
Williams
tenc e d to t e n y e ars in prison,
for p r o d u c i n g
s u b s e q u e n t l y was sen-
P a r sons to six, a n d A s h b y to
five years*
G e o r g e W*
Place, a r r e s t e d in c o n n e c t i o n w i t h capture
o f a c o u n t e r f e i t i n g p l a n t at P h iladelphia,
indictments
f a c e A Federal
if he e v e r is re l e a s e d f r o m s e n t e n c e of f r o m
20 to 4 0 y e ars
in the s t ate p r i s o n w h e r e h e w a s
sent a f t e r
b e i n g i d e n t i f i e d in 51 o f f e n s e s of b r e a k i n g a nd entering*
a c c o u n t e d o n l y f o r cases
tims and
confessed,
a r r e s t e d 22 times
In w h i c h he w as i d e n t i f i e d b y v i c
Lingle*
w h o is 54 y e a r s old* has b e e n
since 1 9 0 9 in f o r g e r y a n d s w i n d l i n g cases*
He w a s s e n t e n c e d O c t o b e r 9 to s e r v e f o u r years
in p r i s o n
for his check d e p r e d a t i o n s *
T he " K n o w Y o u r E n d o r s e r s ” e d u c a tional
c a r r i e d int o t he c o m m e r c i a l c h e c k
c a m p a i g n was
field t h r o u g h c o o p e r a
tio n of m a n u f a c t u r e r s * banks* a n d o t h e r u s e r s of checks*
At
the y e a r 1s end, m o r e
than 2 * 5 0 0 b u s i n e s s e s t a b l i s h m e n t s
i s s uing several m i l l i o n checks m o n t h l y h a d join e d the G o v
e r n m e n t in a d d i n g w a r n i n g n o t i c e s
vouchers*
C a r card*
poster,
to the l e g e n d s on their
and circular warnings against
forgers w e r e w i d e l y d i s t r i b u t e d * a n d w i d e p u b l i c i t y was
g i v e n the p r o g r a m t h r o u g h r a d i o ^ ^ e w s p a p e r a n d m a g a z i n e
a r t i cles.
The C r i m e P r e v e n t i o n P r o g r a m h as been e n d o r s e d b y
A m e r i c a n Legion*
the A m e r i c a n B a n k e r s A s s o c i a t i o n *
the
the
I n t e r n a t i o n a l A s s o c i a t i o n of C h i e f s o f Police* a n d m a n y
o t h e r b u s i n e s s a n d l aw e n f o r c e m e n t g r o u p s .
Two d a n g e r o u s
c o u n t e r f e i t i n g p l a n t s w ere s e i z e d in the
U n i t e d S t a t e s d u r i n g the year,
and Cuban officers were
a s s i s t e d in the c a p t u r e of on© In Havana*
S e c r e t S e r v i c e a g e n t s a r r e s t e d M a r i o n J. W i l l i a m s *
Joel L. P a r sons a n d H a r o l d K. A s h b y in t he s e i z u r e at
3
Wartime
f i n a n c i n g a n d c u r r e n c y d e m a n d s s w e l l e d to a l
most fantastic proportions
the v a l u e o f m o n e y s a n d s e c u r i
ties u n d e r the p r o t e c t i o n o f the Secret S e r v i c e Uniformed
force
in v a r i o u s T r e a s u r y e s t a b l i s h m e n t s *
$ 2 9 5 , 0 0 0 , 0 0 0 * 0 0 0 w o r t h of m o ney,
sec u r i t i e s
in p r o d u c t i o n ,
the w a t c h f u l
Some
stamps, bonds, a n d o t h e r
storage, a n d transit,
came u n d e r
©yes of this l i t t l e p u b l i c i z e d b r a n c h o f the
Service*
N e w problems
confronted
ing out the p r o t e c t i o n of
ments
the S e c r e t S e r v i c e
the P r e s ident*
in c a r r y
Security arrange
f o r his m e e t i n g w i t h Prime M i n i s t e r C h u r c h i l l in
Canada
leaders
in A u g u s t ,
an d h i s c o n f e r e n c e s w i t h U n i t e d N a t i o n s
In C a iro a n d T e h e r a n
called
for t h e g r e a t e s t In
g e n u i t y a nd e f f i c i e n c y o n the p a r t o f the W h i t e H o u s e
detail•
C h i e f W i l s o n c i t e d t w o cases as
lems faced by the S e r v i c e
In De c e m b e r ,
c o n f essed
typical of the p r o b
in c o m b a t t i n g the check forger*
agen t s a t D e t r o i t a r r e s t e d eight p e r s o n s w ho
thefts a n d forgeries w i t h i n a p e r i o d o f six
m o n t h s of 50 a l l o w a n c e a nd b o n d r e d e m p t i o n checks*
They
n o w are a w a i t i n g trial*
A single
thief,
o p e r a t i n g in s e v e r a l
G o v e r n m e n t checks
Bufus L i n g l e , a l i a s C# K*
states,
Pulline,
stole a n d forg e d a t l e a s t 35
t o t a l l i n g $ 1 , 1 0 0 * **and this n u m b e r
The
success of t h i s p r o g r a m Is s een in the fact that,
w h i l e p a y m e n t s b y check d o u b l e d d u r i n g 1945,
forgeries
t he n u m b e r o f
investigated increased only about one-third over
the p r e v i o u s
year.
I n v e s t i g a t i o n s d u r i n g 1 9 4 5 In v o l v e d
1 5 , 0 0 0 i n d i v i d u a l check loss
reports,
compared with 11,000
in 1942*
Frank J. Wi l s o n ,
C h i e f of the S e cret Service,
reported
tha t there w e r e 1 , 1 2 8 c o n v i c t i o n s o n f o r g e r y charges d u r i n g
the year,
c o m p a r e d w i t h 1 , 0 6 0 in 1 9 4 2 ; a nd that c o n v i c t i o n s
f or m a k i n g a n d p a s s i n g c o u n t e r f e i t m o n e y d r o p p e d to 68,
f r o m 254.
Losses
to victims o f p a s s e r s o f c o u n t e r f e i t
bills h i t a n e w l o w of # 2 0 , 7 0 5 a g a i n s t # 2 8 , 9 8 8
in 1942;
w h i l e l o s s e s t h r o u g h a c c e p t a n c e of c o u n t e r f e i t coins
d r o p p e d 51 p e r c e n t to # 1 1 , 0 0 0 in 1945.
P r i o r to 1957,
the S e r v i c e I n i t i a t e d its i n t e n s i v e "Know Y o u r M o n e y "
paign,
when
cam
c o u n t e r f e i t l o s s e s ran as h i g h as a m i l l i o n d o l l a r s
a year.
Th e S e c r e t Se r v i c e d u r i n g 1 9 4 5 a t t a c k e d a n e w w a r
time racket,
the c o u n t e r f e i t i n g of r a t i o n stamps, a n d
a r r e s t e d 1 6 0 persons,
these i n v e s t i g a t i o n s .
p r i n c i p a l l y in the H e w Y o r k area,
T h e S e r v i c e also
a i m e d a t s t amp c o l l e ctors,
sm a s h e d a n e w fraud
involving counterfeiting of
p o s t a g e stamps b e a r i n g d e l i b e r a t e m i s p r i n t s
to m a k e t h e m a p p e a r c o l l e c t o r s 1 items.
in
in an e f fort
V
o
-^ 7
W i t h the m o n e y c o u n t e r f e i t e r d r o p p i n g f u r t h e r t o w a r d
a p o s i t i o n of r e l a t i v e i n s i g n i f i c a n c e
picture,
in the n a t i o n a l
c r ime
the U n i t e d S t a t e s S e c r e t S e r v i c e l a s t y e a r l a i d
d o w n a n a t i o n w i d e b a r r a g e a g a i n s t the c h e c k f o r g e r y racket*
Mor e than 1 , 3 0 0 a r r e s t s w e r e m a d e d u r i n g 1 9 4 3
In
cases i n v o l v i n g f r a u d u l e n t n e g o t i a t i o n o f G o v e r n m e n t checks,
E l m e r L*
Irey, C h i e f C o o r d i n a t o r o f T r e a s u r y E n f o r c e m e n t
Agencies
re p o r t e d to S e c r e t a r y M o r g e n t h a u «
M a n y of the
p e r s o n s a r r e s t e d m e t the S e r v i c e r s d e s i g n a t i o n o f "Meanest
T h i e f in the W o r l d " b y t r a f f i c k i n g In a l l o w a n c e a n d a l l o t
m e n t checks p a y a b l e to d e p e n d e n t s of m i l i t a r y p e r s o n n e l *
Anticipating a fertile
mendous
field for fo r g e r s
i n c rease in G o v e r n m e n t c h eck p a y m e n t s
f rom the W ar,
in the t r e
resulting
the S e c r e t S e r v i c e s t a r t e d a t the b e g i n n i n g
o f 1 9 4 3 one of t h e m o s t i n t e n s i v e c r ime p r e v e n t i o n p r o
grams e v e r c o n d u c t e d in this country,
d e s i g n e d o n the one
h a n d to r e m o v e the o p p o r t u n i t i e s fo r theft of checks; a n d
on the o t h e r to m a k e the n e g o t i a t i o n o f f o r g e d checks
di f f i c u l t
too
to b e a t t r a c t i v e to the c r i m i n a l l y Inclined.
"Know Y o u r E n d o r s e r - Require
I d e n t i f i c a t i o n " w a s the theme
c a r r i e d to b u s i n e s s m e n o n w h o m check f o r g e r y l o s s e s u l t i
m a t e l y fall.
lip.. S h aeffer
TREASURY DEPARTMENT
Washington
•PGR RELEASE, A F T E R N O O N N E W S PAPERS,
Monday, J a n u a r y 31, 1944.
P r e s e -'Service
No. 4 0 -39
W i t h the m o n e y c o u n t e r f e i t e r d r o p p i n g f u r t h e r toward'
a p o s i t i o n of re l a t i v e insignii'icance in the n a t i o n a l
crime picture, the U n i t e d S t ates S e c r e t Se r v i c e last y e a r .
laid dow n a n a t i o n w i d e b a r r a g e a g a i n s t the check f o r g e r y
racket.
(Ji J
* I S L jS j& 'S 'ty
^ »/ g .
M o r e than 1 , 3 0 0 a r r e s t s w e r e ' m a d e d u r i n g 1.943 in
cases involving f r a u d u l e n t n e g o t i a t i o n of. Government'
checks, Elmer. L. Irey., Chief. C o o r d i n a t o r .o f .T r e a s u r y E n
f o r c e m e n t A g e n c i e s / reported' to S e c r e t a r y M o r g e n t h a u . M a n y
of the person's a r r e s t e d m e t 'the S e r v i c e ’s" d e s i g n a t i o n of
’’M e a n e s t Thief' in the W o r l d ” b y t r a f f i c k i n g in allowance,
a n d a l l o t m e n t checks p a y a b l e to d e p e n d e n t s of m i l i t a r y
p e r s onnel,
•*
A n t i c i p a t i n g a f e r t i l e 1.field for forgers in the t r e
m e n d o u s incre a s e in Gov e r n m e n t check payments, r e s u l t i n g
f r o m the War, the .Secret Se r v i c e st a r t e d at' the b e g i n n i n g
of 1 9 4 3 One of the m o s t i n t ensive crime p r e v e n t i o n p r o
grams eYer C o n d u c t e d in this country, d e s i g n e d on the one
h a n d to remove the o p p o r t u n i t i e s for theft of checks; a nd
on the oth.er to m a k e .the n e g o t i a t i o n of f o r g e d checks too
d i f f i c u l t to b e attractive., to the c r i m i n a l l y inclined.
’’K n o w Y o u r E n d o r s e r - Require. I d e n t i f i c a t i o n ” was the theme
carried to b u s i n e s s m e n on. w h o m c h e c k f o r g e r y losses u l t i
mately.. f a l l .
The success of this p r o g r a m is 'seen in the f a c t that,
w h i l e p a y m e n t s b y check d o u b l e d d u r i q g 1943,. the n u m b e r of
f o r geries i n v e s t i g a t e d i n c r e a s e d o n l y about, o n e - t h i r d over
the' p r e v i o u s year.
I n v e s t i g a t i o n s d u r i n g 194 3 i n v o l v e d
1 5 ,000 i n d i vidual check*‘1 os's r e p o r t s ,. .compared w i t h .11,000
in 1942,
Prank J. Wil.son, C h i e f of the S e c r e t Service,, "reported
that there w e r e T , 128 c o n v i c t i o n s on f o r g e r y charges d u r i n g
the year, c o m p a r e d w i t h 1 , 0 6 0 in 1942; a n d that conv i c t i o n s
for m a k i n g a n d passing, counterfeit, m o n e y d r o p p e d to 68,
f r o m 2 34.
L o s s e s ,to victims of p a s s é r s of coun t e r f e i t
b i l l y h it a n e w l o w .of $ 2 0 , 7 0 5 against. $ 2 8 , 9 8 8 in ' 1942;
w h i l e losses t h r o u g h a c c e p t a n c e of c o u n t e r f e i t coins d r o p p e d
-
2
-
51 p e r c e n t to $ 1 1 , 0 0 0 In 1943.
P r i o r to 1937, w h e n the
S e r v i c e i n i t i a t e d its i n t e nsive " K n o w Y o u r M o n e y " campaign,
c o u n t e r f e i t l o sses ran as h i g h as a m i l l i o n d o l l a r s a year.
The Secret S e r v i c e - d u r i n g 1 943 a t t a c k e d a n e w w a r t i m e
racket, the c o u n t e r f e i t i n g of r a t i o n stamps, and a r r e s t e d
160 persons, p r i n c i p a l l y in the N e w Y o r k area, in these
investigations.
The S e r vice also s m a shed a n e w f r aud a i m e d
at stamp c o l l e c t o r s , in v o l v i n g c o u n t e r f e i t i n g of p o s t a g e
stamps h e a r i n g .deliberate m i s p r i n t s in a n effort to m a k e
the m a p p e a r c o l l e c t o r s 1 items.
W a r t i m e f i n a n c i n g a n d c u r r e n c y demands s w e l l e d to a l
m o s t f a n t a s t i c p r o p o r t i o n s the value of m o n e y s a n d s e c u r i
ties u n d e r the p r o t e c t i o n of the Secret S e r vice U n i f o r m e d
force in various T r e a s u r y e s t a b l i s h m e n t s .
Some
'$295.,000,000,000 w o r t h of money, stamps, bonds, an,d o t h e r
sec u r i t i e s in p roduction, storage, a n d transit, came u n d e r
the w a t c h f u l eyes ofbthis l i t t l e p u b l i c i z e d b r a n c h of the
Service.
N e w p r o b l e m s confronted" the Secret S e r v i c e in c a r r y
ing ou.t the p r o t e c t i o n of the President.
Security arrange
m e n t s fo^r his m e e t i n g w i t h Prime M i n i s t e r C h u r c h i l l in
Cana d a in August, a n d his c o n f e r e n c e s w i t h U n i t e d N a t i o n s
l e a d e r s in Cairo a n d T e h e r a n c a l l e d for the g r e a t e s t i n
g e n u i t y .and e f f i c i e n c y on the par t of the W h i t e House D e
tail.
/
'
C h i e f W i l s o n cited two cases as typical of the p r o b
lems faced b y the Service in c o m b a t t i n g the c h eck forger,
In December, a g e n t s .at D e t r o i t a r r e s t e d eight pe r s o n s who
c o n f e s s e d thefts a n d f o r g e r i e s w i t h i n a p e r i o d of six
m o n t h s of 50 a l l o w a n c e and b o n d r e d e m p t i o n checks.
They
n o w are a w a i t i n g trial.
A single thief, Rufus Lingle, a l i a s C. K. Pullins,
o p e r a t i n g in several states, stole and f o r g e d at l e a s t 35
G o v e r n m e n t checks t o t a l l i n g $ 1 , 1 0 0 . . . a n d this n u m b e r
a c c o u n t e d o n l y for cases in w h i c h hé was i d e n t i f i e d b y
victims a n d confessed.
Lingle, w h o is 54 years .old, has
b e e n a r r e s t e d 22 times since 1909 in f o r g e r y a n d s w i n d l i n g
cases.
He w a s s e n t e n c e d O c t o b e r 9 • to serve four years in
p r i s o n for h is c h eck d e p r e d a t i o n s .
The "Know Y o u r E n d o r s e r s " educ a t i o n a l c a m p a i g n was
c a r r i e d into the c o m m e r c i a l check f i e l d t h r o u g h c o o p e r a
tion of m a n u f a c t u r e r s , banks, a n d o t her u s e r s of checks.
A t the y e a r ’s end, m o r e t h a n 2,500 b u s i n e s s e s t a b l i s h m e n t s
3
i s s uing several m i l l i o n checks m o n t h l y h a d joined the G o v
er n m e n t in a d d i n g w a r n i n g n o t i c e s to the le g e n d s on t h e i r
vouchers.
C ar card, poster, a n d c i r c u l a r w a r n i n g s a g a i n s t
forgers w e r e w i d e l y distributed, a n d w i d e p u b l i c i t y was
g i v e n the p r o g r a m t h r o u g h radio a n d n e w s p a p e r a n d m a g
a z i n e articles.
The Crime P r e v e n t i o n P r o g r a m has b e e n e n d o r s e d b y the
A m e r i c a n Legion, the A m e r i c a n B a n kers A s s o c i a t i o n , the
Inter n a t i o n a l A s s o c i a t i o n of Chiefs of Police, a n d m a n y
o t her b u s i n e s s a nd l aw e n f o r c e m e n t groups.
Two d a n g e r o u s c o u n t e r f e i t i n g p l a n t s w e r e s e i z e d in the
U n i t e d States d u r i n g the year, a n d C u b a n o f f i c e r s w e r e
assisted in the capture of one in Havana.
S e c r e t S e r v i c e a g e n t s arrested. M a r i o n J. Wil l i a m s ,
Joel L. P a r sons a n d H a r o l d K. A s h b y in the seizure at
Brem e r t o n , W a s h i n g t o n , of a complete plant for p r o d u c i n g
b o gus $ 1 0 a n d $ 20 n o tes . W i l l i a m s s u b s e q u e n t l y was s e n
tenced to ten years in prison, P a r sons to six, a n d A s h b y
to five y e a r s .
Gecrge W.. Place, a r r e s t e d in c o n n e c t i o n w i t h capture
of a c o u n t e r f e i t i n g p l a n t at P h i l a d e l p h i a , faces F e d e r a l
i n d i c t m e n t s If he ever is r e l e a s e d f r o m s e n t e n c e ' o f f r o m
20 to 40 years in the state p r i s o n w h e r e h^ w a s sent a f ter
b e i n g i d e n t i f i e d in 51 offenses of b r e a k i n 0 an d entering.
oOo-
3
J a c o b K r a k o w i t z a n d M a r t i n A.
the K a n d R Iro n a n d Metal
Rosenthal,
o f f i c e r s of
C o m p a n y of C o l u mbus,
Ohio,
p l e a d e d g u i l t y a n d w e r e g i v e n s e n t e n c e s of three y e a r s a n d
two y e a r s r e s p e c t i v e l y in prison, a n d fines of $>10,000
each.
J o s e p h Hotze,
l o t t e r y operator,
of Boston, was
s e n t e n c e d to t h r e e years\a«A. p r i s o n a n d f i n e d $ 1 0 , 0 0 0 f o r
u n d e r s t a t i n g income
$>85,000.
He is a
taxes o v e r a p e r i o d of three y e a r s b y
second o f f e n d e r a g a i n s t the ta x laws.
Tw o N e v a d a m i n i n g operators,
H u g h W i l t o n a n d James
M a x f ield, w e r e g i v e n o n e - y e a r sen t e n c e s a n d f i ned $ 2 0 , 0 0 0
e a c h fo r tax frau d s a g g r e g a t i n g $ 3 0 , 0 0 0 each.
fine also w as a s s e s s e d Dr.
Vir g i n i a ,
physician,
James W. Tipton,
who pleaded nolo
A $20,000
Danville,
c o n t e n d e r e on income
tax e v a s i o n charges c o v e r i n g five years.
E l m e r Ritz,
s t and into a
R ochester, N e w York,
s ubstantial business,
Rochester* s ,fH a m b u r g e r M a n ” f or th e
p r o duct,
who r an a l u n c h
a n d b e c a m e k n o w n as
s u c c u l e n c e o f his
p l e a d e d g u i l t y to t ax evasion; a n d two c ard
sharps, W i l l i a m D. P r a d a n d A b b e y D r e y f u s s
were c o n v i c t e d f o r f a iling
of N e w Y o r k
to r e p o r t p r o p e r l y as
income
t h e i r " t a k e s ” f r o m v i c t i m s p i c k e d f r o m p a s s e n g e r lists of
trains a n d s t e a mships in the c o urse of their e x t e n s i v e
travels.
Other successful prosecutions were
in s u c h v a r i e d
o f f e n s e s as f r a u d u l e n t r e m oval of a u t o m o b i l e u s e stamps,
a i l u r e to p a y e m p l o y m e n t a n d s o c i a l s e c u r i t y taxes,
f r a u d u l e n t u s e of " w a s h e d ” d o c u m e n t a r y stamps*
and
w i t h e v a ding
c o r p o r a t i o n taxes
through understatement of
sales a n d o v e r s t a t e m e n t of c o m p e n s a t i o n to t h e m s e l v e s .
Treasury investigators
a t t i t u d e s o f the
f o und a m a r k e d d i f f e r e n c e
three t o w a r d the war.
that J a p a n w o u l d win,
one
a n d one was u n d e c i d e d .
in
One e x p r e s s e d hope
that the U n i t e d States w o u l d win,
T h e m e n a r e in i n t e r n m e n t camps,
a n d trial d a t e s h a v e n o t b e e n set*
Treasury Agents
Nikko
Inn a t St.
i n v e s t i g a t i n g the a f f a i r s of the
Petersburg,
Florida,
in the post- Pearl
H a r b o r p o l i c i n g of a s s e t s of Japanese,
income t a x frauds
of books.
e f f e c t e d t h r ough
One set,
the firm* s b u s i n e s s ;
s m a l l e r earnings,
f o und e v i d e n c e of
the k e e p i n g o f two sets
in Japanese, g a v e a true p i c t u r e of
w h i l e one in E n g l i s h ,
w a s the basis
sh o w i n g m u c h
for income tax r e p o r t s to
the G o v e r n m e n t •
The Treasury agents,
s o l v e d t he
in a l e n g t h y i n vestigation,
i n t r i c a c i e s of the O r i ental la n g u a g e ,
t a i n e d i n d i c t m e n t s a g a i n s t S h i n y u Noro,
a n d H a r n a T a n i guchi.
November,
N o r o a n d Goto w e r e
and ob
S h o e i M a r a h i d e Goto
c o n v i c t e d in
1943, a n d s e n t e n c e d to a y e a r e a c h in p r i son*
T a n i g u c h i is in Japan.
S e v e r e p r i s o n s e n t ences a n d h e a v y f i n e s w e r e i m p o s e d
by the courts
b y the Unit.
in s e v e r a l o t h e r cases b r o u g h t to c o m p l e t i o n
The Japanese —
some o f the m —
also
cheat on t h e i r
income taxes*
Two
i n come t a x f r a u d cases d e v e l o p e d h y the I n t e l l i g e n c e
U n i t of the B u r e a u of Internal
Revenue d u r i n g 1 9 4 3 i n v o l v e d
J a p a n e s e b u s i n e s s m e n w h o hav e p r o s p e r e d u n d e r the l a w s o f
the U n i t e d States*
The
cases w e r e c i t e d b y E l m e r L.
Irey,
C h i e f C o o r d i n a t o r of T r e a s u r y E n f o r c e m e n t a g e n c i e s ^ i n one
o f a series of r e p o r t s
to S e c r e t a r y M o r g e n t h a u d e a l i n g w i t h
the w o r k of the se r v i c e s d u r i n g the c a l e n d a r y e a r just
closed*
W. H. Woolf,
C h i e f o f the Unit,
investigated more
recommendations
than 1 , 0 0 0 s e p arate
f or a d d i t i o n a l
totalling $40,722,000*
c r i m i n a l ch a r g e s
r e p o r t e d h is agents
cases, a n d m a d e
tax a s s e s s m e n t s a n d p e n a l t i e s
O f 82 p e r s o n s b r o u g h t to trial on
I n v o l v i n g inco m e tax d e f i c i e n c i e s ,
81 w e r e
convicted*
T h e t wo
on o p p o s i t e
cases i n v o l v i n g n a t i o n a l s o f J a p a n d e v e l o p e d
sides of the
continent*
In Cali f o r n i a ,
P r a n k Juro Ishida,
Kazumasa Hayakawa, and Heiji Sugimoto
w e r e i n d i c t e d late
in the y ear f or e v a s i o n o f income a n d
excess p r o f i t s taxes due a l l e g e d l y f r o m thp U n i o n N u r s e r i e s
a n d Co*, Ltd*
The corp o r a t i o n ,
at Hawthorne,
e n g a g e d in t he g e n e r a l n u r s e r y b u s i n e s s *
o f the firm,
all o f w h o m were b o m
California,
Th e three o f f i c e r s
in Japan,
were charged
TREASURY DEPARTMENT
Y/ashington
P O R RELEASE, M O R N I N G N E W S P A P E R S ,
Wednesday, F e b r u a r y 2, 1944»
1 - 2 2-44
The Japanese
taxes,
--. some of t h e m -- a lso
Press S e r v i c e
No. 40-40.
cheat
on t h e i r income
Two income t a x f r a u d cases d e v e l o p e d by t h e I n t e l l i g e n c e
Uni t ,of t he B u r e a u of I n t e r n a l R e v e n u e during. 1 9 4 3 i n v o l v e d
J a p a n e s e b u s i n e s s m e n who h a v e p r o s p e r e d u n d e r .the laws of the
U n i t e d States.
T h e cases w e r e c i ted by E l m e r 1. Irey, ChiefC o o r d i n a t o r of T r e a s u r y E n f o r c e m e n t agencies, in one of a .series
of r e p o r t s to S e c r e t a r y K o r g e n t h a u .dealing w i t h t h e w o r k of t he
services .during t h e c a l e n d a r y e a r just closed.
. -W. H. W o o l f , ' C h i e f of -t^e /Chit, r e p o r t e d ^his .agents i n v e s t i
gated more than 1,000 separate e a s e s , and made recommendations
for a d d i t i o n a l t a x a s s e s s m e n t s a n d p e n a l t i e s t o t a l l i n g '
§ 4 0 , 7 2 2 , 0 0 0 . , Of 82 p e r s o n s b r o u g h t to t r i a l on cr i m i n a l charges
i n v o l v i n g income t a x deficiencies, 81 w-ere convicted.
T h e two. cases Involving, n a t i o n a l s of. Japan .developed on
op p o s i t e .sides of the. con t i n e n t . In .California., P r a n k Juro
Ishida, H a z u m a s a .Hayakawa.,- a n d H e i j i S u g i m o t o .were i n d i c t e d 'late
•in, t h e y e a r f o r e v a s i o n ,of income a nd •excess p r o f i t s t a x e s due ■
a l l e g e d l y f r o m t h e U n i o n Nurseries- a nd Co.', l t d , The corporation,
at Hawthorne, California, e n g a g e d i n t h e general- n u r s e r y b u s i n e s s .
The t h r s © officers- of the firm, all of w h o m .were born, in Japan,
wer e c h a r g e d w i t h evading c o r p o r a t i o n t a x e s t h r o u g h u n d e r s t a t e m e n t
of s a l e s a n d o v e r s t a t e m e n t of c o m p e n s a t i o n to t h e m s e l v e s .
T r e a s u r y in v e s t i g a t o r s f o u n d a m a r k e d d i f f e r e n c e i n att i t u d e s
of t h e t h r e e t o w a r d t h e war.
One e x p r e s s e d hope: that. Japan w o u l d
win, one that t he U n i t e d States w o u l d win, a n d one was u n d e cided.
T h e m en are in i n t e r n m e n t camps, a n d t r i a l dates have n o t been
set.
T r e a s u r y a g e n t s i n v e s t i g a t i n g t h e a f f a i r s of t h e N i k k o Inn
at S t f Petersburg, Florida, in t h e post P e a r l H a r b o r p o l i c i n g of
assets of Japanese, f o und e v i dence of i n come t a x frau d s eff e c t e d
t h r o u g h t he k e e p i n g of t w o sets of books,
One set, in Japanese,
g a v e a t r u e p i c t u r e of th e f i r m ’s business; w h i l e one in English,
showing m u c h s m a l l e r earnings, was t h e basis f o r income t a x
r e p orts to t he Gove r n m e n t .
-
2-
The T r e a s u r y agents, in a l e n g t h y investigation, s o l v e d t h e
i n t r i c a c i e s of t h e O r i e n t a l language, a n d o b t a i n e d i n d i c t m e n t s
a g a i n s t S h i n y u Noro, S h o e i M a r a h i d e Goto, a n d H a r n a Taniguchi.
Nor o a n d Goto w e r e c o n v i c t e d in November, 1943, a n d s e n t e n c e d to
a y e a r each in pr i s o n .
T a n i g u c h i is in Japan.
.. i.
S e v e r e p r i s o n se n t e n c e s a n d h e a v y fines w e r e i m p o s e d b y the
courts in s e v e r a l o t h e r cases b r o u g h t to c o m p l e t i o n by t h e Unit,.
Jacob K r a k o w i t z a n d M a r t i n A, R o s e nthal, officers of t h e K and
R Iron a n d iletal C o m p a n y of Columbus, Ohio, p l e a d e d g u i l t y a n d were
g i v e n s e n t e n c e s of t h r e e years a n d t w o y e a r s r e s p e c t i v e l y in prison,
a n d fines of $ 1 0 , 0 0 0 each.
J o s e p h Hotze, l o t t e r y operator, of
Boston, was s e n t e n c e d t o t h r e e y e a r s in
prison- a n d f i n e d $ 1 0 , 0 0 0
f o r u n d e r s t a t i n g income t a xes o v e r a p e r i o d of t h r e e y e ars by
$85,000.
He is a s e c o n d o f f e n d e r a g a i n s t t h e t a x laws.
T w o N e v a d a m i n i n g operators, H u g h W i l t o n a n d James Maxfield,
w e r e g i v e n one-^year s e n t e n c e s a n d f i n e d $ 2 0 , 0 0 0 each f o r t a x frauds
a g g r e g a t i n g $ 30,000 each.
A $20,000 fine also'was assessed
Dr. James ?/, Tipton, Danville, Virginia, physician, w h o p l e a d e d
n o l o c o n t e n d e r e on i n c o m e t a x evasion charges- c o v e r i n g fiv e years.
E l mer Ritz, R o c h e s t e r , N e w York, w ho ra n a l u n c h s t a n d into
a s u b s t a n t i a l business, a n d b e c a m e k n o w n as R o c h e s t e r ’s ’’H a m b u r g e r
M a n ” f o r the.’s u c c u l e n c e of his product, p l e a d e d g u i l t y to t a x
evasion; an d t w o card sharps, W i l l i a m D. F r a d a n d A b b e y D r e y f u s s
of N e w Y o r k w e r e -convicted for f a i l i n g to r e p o r t p r o p e r l y as income
t h e i r ’’t a k e s ” f r o m v i c t i m s p i c k e d f r o m p a s s e n g e r lists of t r a i n s
a n d s t e a m s h i p s in t h e c o u r s e of t h e i r e x t e n s i v e tr a v e l s .
O t h e r s u c c e s s f u l p r o s e c u t i o n s w e r e in s u c h v a r i e d o f f enses as
f r a u d u l e n t r e m o v a l of a u t o m o b i l e u s e stamps, f a i l u r e to p a y employ•m e n t a n d s o c i a l s e c u r i t y taxes, a n d f r a u d u l e n t u s e of ’’w a s h e d ”
documentary s t a m p s .
31
Advance release for afternoon papers, Jan* 28
¿/
Rgopoaed statement- for roXbups to tho preoo in Washington
-sad--fag-sapplQiaental die t>ribnblun by u o IIm a tm u *
0 ~I /
Harold N. Graves, acting j
•Tinlurii i i TTinTmx^iii^"Tnm1r“1^nn‘ of Internal Revenue, urged a l l wage earners
today to s ta r t f illin g in th e ir annual income and victory tax retu rn s as soon as
they receive the wage and tax receip ts now being distributed by employers*
These rece ip ts, which employers are required under law to issue by January
31
show the amount of wages paid and the amount of income and victory tax withheld
during 1943* Therefore, they provide the wage earner with two of the key figures
he needs fo r f illi n g in h is return*
"As soon as you get your re c e ip t," Commissioner Hwa^p^-coinmented, "you
should be in position to
£rv_
is your retu rn and^will fin d i t to your
great advantage to do so at the e a rlie s t date*
¿?-L
"One of the most important reasons fo r -starting e a rly is to determine
how much i f any tax you must pay by March 15, which is the deadline fo r filing*
Some of you w ill owe a substantial amount, many w ill owe a small fig u re, others
w ill get refunds* You owe i t to yourself to fin d out at once about your own
situation*
«»The p ra c tic a l way to find out where you stand is to f i n out your return*
Then a fte r you have f ille d i t out, you should f i l e i t with the Collector of
in your d is tr ic t
Internal Revenue /as long before March 15 as convenient*"
«* 0 •*
TREASURY DEPARTMENT
Washington
FOR RELEASE, A F T E R N O O N N E W S P A P E R S ,
Friday, J a n u a r y 28, 1944,
Press
No.
S e rvice
40-41
H a r o l d N. Graves, a c t i n g C o m m i s s i o n e r of Internal
Revenue, u r g e d all wage earners t o day to start f i l l i n g in
their a n n u a l income a n d v i c t o r y tax r e t urns as soon as
they receive the w a g e a n d tax receipts n o w b e i n g d i s t r i b
u t e d b y employers.
T h ese receipts, w h i c h e m p loyers are r e q u i r e d u n d e r
l aw to issue b y J a n u a r y 31, show the a m o u n t of w a ges pai d
a n d the a m o u n t of income a n d v i c t o r y tax w i t h h e l d d u r i n g
1943.
Therefore, they p r o v i d e the wage e a r n e r w i t h two
of the k e y figures he n e e d s for f i l l i n g in his return.
"As soon as yo u get y o u r receipt," C o m m i s s i o n e r Graves
commented, "you shou l d be in a p o s i t i o n to m a k e out y o u r
r e t u r n a n d y o u w i l l f ind it to your g r e a t a d v a n t a g e to do
so a t the earliest date.
"One of the m o s t i m p o r t a n t re a s o n s for a c t i n g e a r l y
is to d e t e r m i n e h o w m u c h if a n y tax y o u m u s t p a y b y
M a r c h 15, w h i c h is the d e a dline for filing.
Some of y o u
will owe a subs t a n t i a l amount, m a n y wil l owe a small f i g
ure, others wil l get refunds.
Y o u owe it to y o u r s e l f to
find out at once a b o u t your own situation.
"The p r a c t i c a l w a y to f i n d out w h e r e y o u s t a n d is to
fill out y our return.
T h e n a f ter y o u have f i l l e d it out,
you should file it w i t h the C o l l e c t o r of Internal Revenue
in y o u r di s t r i c t as long b e f o r e M a r c h 15 as c o n v e nient."
: /
'
||?
■
DIVISION OF PUBLIC RELATIONS
' •f 1
Assignment sheet for Press Releases and other publications (speeches, ate«) ,
Check list to he used,
Title
Date of release: A - 4 - r f < L - >
f
Press Service No; / <
Pro ces s
No* Copies
,
(*^f,,,^*Special Messenger , . . . ......... • • « . * ♦ » *
^7
G-
(t^^General
tl
0
(t^^^Customs , , , . , ^ . ♦ t .
, . * . . • « • • • .............
13 r
CaCo
(
)
Canadian Commodities
CfQ,
(
)
Coffee auotas
. . . < • < » * ......... *
)
Cotton auotas
♦
)
Wheat auotas
CQ,
WQ,
(
(
. . . . . . . . . .
........? ♦
EP&!T
(
)
Financial and fax
* * *
B&B
(
)
Bills and Bonds . « * . ..................
BUL
(
)
Bulletin . > ......... . . , ............
Dli
(
)
Debt limitation
FFC
(
)
Foreign Funds Control . . . . . . . . . . .
HM
(
)
Net market transactions . . . . . . . . . .
PSp
(
)
Paul speeches . .•••»•• . v. . . . . . . . . . . .
FE
(
)
Financial Editors ................ .
)
Editors . . , . . . ............ *.........
SE
(
Press room . . . . . . . .
Door .......... .
owl
.......
/S'
/*
. ................... \ * * * 3 o
Building distribution . . ¿ ^ S ~ o
Hiss Fitzgerald, 5th FI. rear, Washington Building . . .
Mrs. Eberts, 71*9 Washington Building
*q . . .
fotal (CuLJ
^ O O
Remarks:
7 S ’
% >
&*-•
3 9 o j
¿ i T
____ _______________ -
S e i z u r e of s o m e 225 o u n c e s of M e x i c a n o p i u m als o f i g u r e d In
h e s m a s h i n g of a C h i n a t o w n u n d e r w o r l d g a n g in Portland,
w h i c h r e s u l t e d in s i x t e e n conv i c t i o n s ,
f o r t h e principal,
W o n g Suey.
Oregon,
w i t h a t e r m of f i v e years
P r o c u r e o f thi s i n v e s t i g a t i o n w a s
t he d i s c o v e r y of a n o p i u m s m o k i n g d e n o p e r a t i n g b e h i n d s t r o n g l y
g u a r d e d f’i c e - b o x ” t y p e doors,
and the work of an undercover
nareot
o f f ! c a r w h o g a i n e d t he c o n f i d e n c e of t h e Tong o v e r l o r d s in
o r d e r t o g a t h e r t h e c o n c l u s i v e e v i d e n c e a g a i n s t t h e gang*
T h r e e C h i n e s e s e a m e n w e r e p r i n c i p a l s in a c ase i n v o l v i n g 145
o u n c e s of P e r s i a n o p i u m a t N e w Y o r k a n d f o u r C h i n e s e w e r e i n v o l v e d
in t h e s m u g g l i n g into t h e s a m e p o r t of 204 o u n c e s o f I n d i a n c r u d e
g u m opium*
Th e l e a d e r d r e w f i v e y e a r s in prison,
s m a l l e r s e i z u r e s w e r e m a d e in t h e s a m e area*
A r a r i t y in r e c e n t y e a r s , f o u r o u n c e s of a l m o s t p u r e h e r o i n
w e r e s e i z e d in t h e a r r e s t at C h i c a g o o f t wo o ld narooticjf l a w
o f f e nders,
1
A r t h u r K u p s n e c k e r a n d Joh n I<
I l l e g a l d i v e r s i o n of n a r c o t i c s t h r o u g h p r e s c r i p t i o n frauds
and thefts
continued a major problem.
O n e case d e v e l o p e d b y th e
B u r e a u o f N a r c o t i c s i n v o l v e d a p h y s i c i a n e s t i m a t e d to h a v e d one a
# 1 0 0 , 0 0 0 b u s i n e s s in i l l e g a l p r e s c r i p t i o n s o v e r a p e r i o d of t h r e e
a n d a h a l f years.
supplied h i m were
The p h y s i c i a n a n d t h e w h o l e s a l e drug h o u s e that
convicted.
2~
c o m p a r e d w i t h 5#445 o u n o e s in 1942«
I n t e r i o r s e i z u r e s of m a r i h u a n a d r o p p e d sharply, b u t s e i z u r e s at
p o r t s incr e a s e d ,
a n d t h e t o t a l o f 1 0 , 9 2 9 o u n c e s w as o n l y s l i g h t l y less
than t h e 1 2 , 8 1 1 o u n c e s s e i z e d in 1942.
violations,
A r r e s t s f o r narcotlejf l a w
as w e l l as t h o s e f o r t r a f f i c k i n g in m a r i h u a n a ,
showed
l i t t l e c h a n g e f r o m 1 942 figures, a n d t h e t o t a l of s u c h a r r e s t s w a s
2,672,
a g a i n s t 2,635 t h e p r e v i o u s year.
T h e m o s t s p e c t a c u l a r c ase d e v e l o p i n g on the M e x i c a n f r o n t i e r had
its i n c e p t i o n at Do u g l a s ,
A r i zona,
w i t h t h e a r r e s t e a r l y in S e p t e m b e r
of E d u a r d o A m a v i z c a a n d s e i z u r e of 1 4 0 o u n c e s of s m o k i n g o p i u m ^ w o g t h
Joint i n v e s t i g a t i o n b y
Customs and narcotics Bureau agents indicated that th e source of these
n a r c o t i c s w a s the c i t y of A g u a Prieta,
cers e n t e r e d t h e case,
Mariano
Sonora, M e x i c o .
Mexican offi
a n d on B o v e m b e r 19, a r r e s t e d M i g u e l B r a y a n d
Qs c o b o s o in t he a c t of s e l l i n g
35 ounc e s o f c r u d e opium,
a
b l a s t f r o m t h e p e d d l e r s ’ g uns f a i l i n g to t o u c h them.
A m a v i z c a w as g i v e n a n e i g h t e e n m o n t h s t e r m in F e d e r a l p r i s o n when
h e p l e a d e d g u i l t y at Tucson,
Arizona,
on D e c e m b e r 9*
B r a y a nd Escoboso
9j«u*ae.
^dae
of t h e la r g e s t c o n f i s c a t i o n s
e v e r m a d e on t h e M e x i c a h border,
r a l lots t o t a l i n g n e a r l y 1 , 5 0 0 o u n c e s o f s m o k i n g opium,
in c o n n e c t i o n w i t h t he a r r e s t of J i m K i n g Wong,
S l y King,
at El P a s o last June.
a l ias
This n o t o r i o u s d o p e p e d d l e r s u b s e
q u e n t l y w a s g i v e n a 5 y e a r p r i s o n t e r m a n d f i n e d #5,000.
A n o t h e r joint i n v e s t i g a t i o n b y H a r c o t i c s a n d C u s t o m s o f f i c e r s
b r o u g h t f i v e y e a r p r i s o n t e r m s t o A l o n s o Montano,
Culling,
a n d P r a n k E.
Sr.,
$rnest C
Tayl o r a f t e r s e i z u r e of 1 50 ounc e s ^ c o n c e a l e d
u n d e r t h e h o o d of a n a u t o m o b i l e en r o u t e b e t w e e n El P a s o a n d Phoenix.
M e x i c a n o fficials,
and Karootio©
allied closely with United States Customs
o f f i c e r s in t h e b a t t l e a g a i n s t h o o d l u m s a t t e m p t i n g to
t u r n t h e S o u t h e r n R e p u b l i c i n t o a n i l l i c i t dru g s u p p l y source,
c a r r i e d t h e f i g h t i nto t h e i n t e r i o r p r o d u c i n g sections,
have
a n d in o ne
c a s e g o t t h e i r m e n in t h e f a c e o f b l a z i n g guns*
C o o p e r a t i o n of t h e M e x i c a n G o v e r n m e n t a d d e d t o t h e
n e s s of t h e T r e a s u r y ’s n a r c o t i c s o f f e n s i v e las t year,
e ffective-
E l m e r 1*
Irey,
Chief Coordinator of enforcement agencies reported to Secretary
Morgenthau*
United States courts gave long prison terms to half a dozen
m a j o r b o r d e r smugglers,
and some narcotics shipments wor t h thousands
of d o l l a r s a t u n d e r w o r l d p r i c e s w e r e seized.
M e r c h a n t ve s s e l s p l y i n g t h e w a r s h i p p i n g r o u t e s b e t w e e n U n i t e d
S t a t e s p o r t s a n d Iran a n d India p r o v i d e d a m a j o r h e a d a c h e f o r the
Treasury agencies.
O r i e n t a l c r e w m e m b e r s on t h e s e vessels,
par
t i c u l a r l y o n D u t c h a n d B r i t i s h craft, w e r e t he offe n d e r s *
A c t i n g o n i n s t r u c t i o n s o f W* R.
Johnson,
C o m m i s s i o n e r of Customs,
a g e n t s i n t e n s i f i e d t h e i r s e a r c h e s of v e s s e l s a r r i v i n g In port,
f o u n d c a c h e s of n a r c o t i c s
in e v e r y c o n c e i v a b l e h i d i n g plac e *
mos t s u c h s e i z u r e s w e r e small,
o f t h e i n d i v i d u a l addict,
and
While
and apparently Intended for the use
s o m e w e r e large e n o u g h to i n d i c a t e smuggling
a c t i v i t i e s , a n d t h e t o t a l of s e i z u r e s w a s s u b s t a n t i a l .
M a s t e r s of
v e s s e l s o f f e r e d e x c e l l e n t c o o p e r a t i o n to agents.
H. J. A n s l i n g e r ,
C o m m i s s i o n e r of n a r c o t i c s , r e p o r t e d t h a t drugs
in t h e i n t e r i o r t r a f f i o c o n t i n u e d e x t r e m e l y scarce,
cally all cases heavily adulterated,
h i gh.
However,
and prices almost prohibitively
t h e t o t a l of seizures,
port confiscations^was
w e r e in p r a c t i
s w e l l e d b y M e x i c a n b o r d e r and
l a r g e r t h a n in the r e c e n t years,
8,507
ounces,
Mr* Coffelt
January 21* 1944
Judge Mu L* Igoe, at Chicago*
gave Arthur Kupsneoker and John Iorio
only eighteen months each on January 14
1944,
H. J. ANSLINGEH
TREASURY DEPARTMENT
Washington
F O R RELEASE, A F T E R N O O N NEWSPAPERS,
F r i day, F e b r u a r y 4» 1944-»1 -2 4 - 4 4
.
... ■V :
*
P r ess S e r vice
.^°* 40-42
M e x i c a n officials, a l l i e d c l o s e l y w i t h U n i t e d Stales
C u s t o m s a nd n a r c o t i c s * off leers' in, the, b a t t l e a g a i n s t ^hoodlums
a t t e m p t i n g to t u r n t h e S o u t h e r n R e p u b l i c int o an i l l icit drug
s u p p l y source, h a v e c a r r i e d t h e - f i g h t into the i n t e r i o r p r o
d u c i n g sections, a nd in o ne case.got t h e i r men in t he f a c e of
blazing g u n s .
• •
C o o p e r a t i o n of t h e M e x i c a n G o v e r n m e n t •a d d e d to t h e e f f e c
t i v eness of t h e T r e a s u r y *s n a r c o t i c s off ens ive last year,
Elmer 1. Irey,, C h i e f C o o r d i n a t o r of enf o r c ement a g e n c i e s »re
p o r t e d to S e c r e t a r y M o r g enthau.
U n i t e d States courts g a v e long p r i s o n terms' to h a l f a dozen
m a j o r b o r d e r smugglers, and some n a r c o t i c s s h i pments w o r t h t h o u
sands of dollars at u n d e r w o r l d p r ices wer e seized.
M e r c h a n t v e s sels p l y i n g t h e w a r s h i p p i n g r o u t e s b e t w e e n
U n i t e d States, ports a n d Iran a n d India p r o v i d e d a m a j o r h e a d a c h e
f o r t he T r e a s u r y agencies.
O r i e n t a l crew me m b e r s on t h e s e
v e s s e l s , p a r t i c u l a r l y on D u t c h a n d B r i t i s h craft, w e r e the
off e n d e r s .
A c t i n g on i n s t r u c t i o n s of W. R f- «Johnson, C o m m i s s i o n e r of
Customs, agents i n t e n s i f i e d t h e i r searches of v e s s e l s a r r i v i n g
in port, a nd f o u n d caches of n a r c o t i c s in every c o n c e i v a b l e
h i d i n g place.
W h i l e most s u c h se i z u r e s w e r e small, a n d a p p a r
ently in t e n d e d for the u se of t he i n d i v i d u a l addict, some w e r e
l a rge enou g h to i n d i c a t e s m u g g l i n g activities, a n d t he t o t a l
of seizures was substantial.
M a s t e r s of v e s sels o f f e r e d e x c e l
lent c o o p e r a t i o n to a g e n t s . .
H. J. A nslinger, C o m m i s s i o n e r o f / N a r c o t i c s , r e p o r t e d that
drugs in the i n t e r i o r t r a f f i c c o n t i n u e d e x t r e m e l y scarce, w e r e
•in p r a c t i c a l l y al l cases h e a v i l y adulterated-, a n d pric e s almost
p r o h i b i t i v e l y high.
However, .the t o t a l of seizures, s w e l l e d Dy
M e x i c a n b o r d e r a n d port confiscations,- b y Customs, was l a rger
t h a n in th e r e c e n t years, 8 , 5 0 7 o u n c e s , ■c o m p a r e d w i t h 5 , 4 4 5
ounces in 1 9 4 2 .
I n t e r i o r seizures of m a r i h u a n a d r o p p e d snarply, but seizures
at ports increased, a nd t h e t o t a l of 1 0 , 9 2 9 ounces was only
s l i g h t l y less t h a n the 1 2 , 8 1 1 ounces s e i z e d in 1 9 4 2 . A r r e s t s
-
2-
f o r n a r c o t i c law violations, as w e l l as those f or t r a f f i c k i n g in
marihuana, s h o w e d l i t t l e change f r o m 1942 figures, a n d t h e t o t a l
of s u c h a r r ests was 2,672, a g a i n s t 2,695 t he p r e v i o u s year.
T h e most s p e c t a c u l a r case d e v e l o p i n g on t h e M e x i c a n f r o n t i e r
h a d its in c e p t i o n at Douglas, Arizona, w i t h th e a r r e s t early in
S e p t e m b e r of E d u ardo A m a v i z c a a n d s e i z u r e of 140 ounces of s m o k
ing opium.
Joint i n v e s t i g a t i o n b y C u s t o m s a n d N a r c o t i c s B u r e a u
a g ents i n d i c a t e d that th e source of t h e s e n a r c o t i c s was the city
of A g u a Prieta,' Sonora, Mexico.
M e x i c a n officers entered the
case, a n d on N o v e m b e r 19, a r r e s t e d M i g u e l B r a y a n d Ma r i a n o
Es c o b o s o in t h e act of selling. 35 ounces of crude opium, a blast
f r o m t h e p e d d l e r s ’ guns f a i l i n g t o t o u c h them.
A m a v i z c a was g i v e n an ei g h t e e n mont h s t e r m in f e d e r a l prison
w h e n he p l e a d e d g u i l t y at Tucson, Arizona, on D e c e m b e r 9*
Bray
a n d E s c o b o s o w i l l be p r o s e c u t e d u n d e r M e x i c a n laws.
As a result of f u r t h e r c o o p e r a t i o n b e t w e e n Narcotics a n d
C u s toms officers, one of the largest c o n f i s c a t i o n s ever m a d e on
the Mex i c a n - b o r d e r , inv o l v i n g se v e r a l lots t o t a l i n g n e a r l y 1,500
ounces of s m oking opium, o c c u r r e d in connection w i t h the arrest
of J im K i n g Wong, a l ias S ly King, at El P a s o last June.
This
n o t o r i o u s dope p e d d l e r s u b s e q u e n t l y was given a 5 y e a r p r i s o n
t e r m a n d f i n e d §5,000.
A n o t h e r joint i n v e s t i g a t i o n by N a r c o t i c s a n d Cu s t o m s o f f i
cers b r o u g h t five y e a r p r i s o n t e rms to A l f o n s o Montano, Sr.,
Ernest C. Culling, a n d P r a n k E, T a y l o r a f t e r s e i z u r e of 150
ounces of o p ium concealed* u n d e r t he h o o d of an a u t o m o b i l e en
r o u t e b e t w e e n El P a s o and Phoenix,
S e i z u r e of some 225 ounces of M e x i c a n o p i u m als o f i g u r e d in
the s m a s h i n g of a C h i n a t o w n u n d e r w o r l d g a n g in Portland, Oregon,
w h i c h r e s u l t e d in si x t e e n convictions, w i t h a t e r m of f i v e years
for the p r i n c i p a l , .W o n g Suey.
F e a t u r e of this i n v e s t i g a t i o n was
t he d i s c o v e r y of an o p i u m s m o k i n g den o p e r a t i n g b e h i n d s t r o n g l y
g u a r d e d "ice-box" t y p e doors, a nd the w o r k of an u n d e r c o v e r
n a r c o t i c officer who g a i n e d the c o n f i d e n c e of t h e T o n g overlords
in o r d e r to g a t h e r the c o n c l u s i v e evide n c e a g a i n s t t h e gang.
T h r e e C h i n e s e seamen w e r e p r i n c i p a l s in a case i n v o l v i n g
145 ounces of P e r s i a n o p i u m at N e w Y o r k a nd f our C h i n e s e w e r e
i n v o l v e d in t h e s m u g g l i n g into t h e sam e port of 204 ounces of
Indian crude g u m opium,
The l e a d e r dre w f i v e y e a r s in prison.
N u m e r o u s s m a l l e r seizures, w e r e mad e in t h e same area.
-3A r a r i t y in r e c e n t y e a r s , f o u r ounces of a l m o s t pur e h e r o i n
w e r e s e i z e d in th e a r r e s t at C h i c a g o of t w o old n a r c o t i c law
offenders, A r t h u r K u p s n e c k e r a n d J ohn Iorio,
T h e y w e r e each
sentenced, on J a n u a r y 14, 1944» to eighteen months in prison*
Illegal div e r s i o n of n a r c o t i c s t h r o u g h p r e s c r i p t i o n frauds
a n d t h efts c o n t i n u e d a m a j o r problem.
O n e case d e v e l o p e d by t he
B u r e a u of N a r c o t i c s i n v o l v e d a p h y s i c i a n e s t i m a t e d to hav e done
a $ 1 0 0 , 0 0 0 b u s i n e s s in illegal p r e s c r i p t i o n s over a p e r i o d of
t h r e e a n d a hal f y e a r s . T h e p h y s i c i a n a n d th e w h o l e s a l e drug
h o u s e t h a t s u p p l i e d h i m w e r e convicted.
-oOo-
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, January 25» 1944._____
Press Service
The Secretary of the Treasury announced la s t evening th a t the tenders for
$1,000,000,000, or thereabouts, of 91-day Treasury b ill s to be dated January 2? and to
mature April 27, 1944, which were offered on January 21, were opened a t the Federal Re
serve Banks on January 24.
The d etails of th is issue are as follows;
Total applied for - $2,290,465,000
Total accepted
- 1,015,849,000
Average price
(includes $66,702,000 entered on a fixedprice basis a t 99*905 and accepted in full)
- 99.905/ Equivalent rate of discount approx. 0.374* per annum
Range of accepted competitive bids:
High
Low
- 99.925 Equivalent rate of discount approx. 0.297* per annum
- 99.905
»
»
«
«
«
0.376* "
"
(32 percent of the amount bid for a t the low price was accepted)
Federal Reserve
D istric t
Total
Applied for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 140,556,OCX)
$
1 ,371 ,181,000
80,171,000
45.353.000
31 .270.000
24 ,660,000
323,573,000
66 ,490,000
44.459.000
22.627.000
TOTAL
63,444,000
527.310.000
40.119.000
37.159.000
23 .450.000
21 ,192,000
126 .698.000
29 ,005,000
20.659.000
24 , 470,000
1 7 .502.000
1 9 ,156,000
115*655*000
90*155*000
$2,290,465,000
$1,015,849,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, J a n u a r y 25, 1944*
Press Service
No, 4 0 - 4 3
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d l ast e v e ning that
the tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 -day
T r e a s u r y bills to be dated J a n u a r y 27 a n d to m a t u r e April 27,
1944, w h i c h wer e o f f e r e d on J a n u a r y 21, w e r e o p e n e d at the
Federal Reserve Banks on J a n uary 24.
The details of this
issue are as
follows:
Total a p p l i e d for - $ 2 , 2 9 0 , 4 6 5 , 0 0 0
Total a c c e p t e d
1 , 0 1 5 , 8 4 9 , 0 0 0 (includes $ 6 6 , 7 0 2 , 0 0 0
e n t e r e d on a f i x e d - p r i c e basis at
9 9 .905 and a c c e p t e d in full)
9 9 . 9 0 5 / E q u i v a l e n t rate of disco u n t
a p p r o x . 0 , 3 7 4 $ p er a n n u m
A v e r a g e price
Range of a c c e p t e d c o m p e t i t i v e bids:
9 9 . 9 2 5 E q u i v a l e n t rate of di s c o u n t
approx, 0 , 2 9 7 $ per a n n u m
9 9 * 9 0 5 E q u i v a l e n t rate of d i s c o u n t
approx. 0 . 3 7 6 $ pe r a n n u m
High
Low
(32 p e r c e n t of the a m o u n t b id for at
Federal R e serve
Di s t r i c t ________
Boston
New York
Philadelphia
Cleveland
Richmond
A t l anta
Chicago
St. L o u i s
Minneapolis
Kansas City
Dall a s
S an F r a n c i s c o
TOTAL
Total
A p p l i e d for
$
140,556,000
1,371,181,000
80.171.000
45.353.000
31.270.000
24.660.000
323.573.000
66.490.000
44.459.000
22.627.000
24.470.000
115.655.000
$2,290,465,000
oOo-
the low price was accepted)
Total
Accepted
$
63,444,000
527.310.000
40.119.000
37.159.000
23.450.000
21.192.000
126.698.000
29.005.000
20.659.000
17.502.000
19.156.000
90.155.000
$1,015,849,000
DIVISION OF PUBLIC RELATIONS
Assignment sheet for Press Releases and other publications (speeches, etc.)
Chech list to be used*
Pate of release
a>
Title
j
dX •**
Press Service Ho *4^0 -ù
L
.
Process^
H o . Conies
Special M e s s e n g e r ................. ..
o
General
. . . . . . . .
, , .
. >.
. . . . . . . . . .
C
(<
)
Customs . . . . . . . . . . . . . . . . . .
CaCo
(
)
Canadian Commodities
CfQ,
(
)
Coffee ouotas
CQ,
(
)
Cotton auotas
WQ,
(
)
Wheat a u o t a s ............. ................
RF&T
(
)
Financial and ?ax . . . . ... . . .- . . , .
3&B
(
)
Bills and Bonds . . . . . . . . . . . . . .
BUL
(
)
Bulletin ..................................
Eli
(
)
Debt limitation . . . . . . . . . . . . . .
EEC
(
)
Foreign Funds Control ......................
HM
(
)
Net market transactions . . . . . . . . . .
PSp
(
)
Paul speeches . .f . v. . . . . . . . . . . .
PE
(. )
Financial E d i t o r s ......... ..
SE
(
Editors . . . . . . . . . . . . . . . . . .
)
j j
/ ?
. . . . . . . . . .
. . . . . . . . . . . . . .
,
........... ..
Press r o o m .......... .. . t *
Poor . . . . . . . . . . .
t 0
OWI
. ........... ...
3 o
Building distribution . .
Miss Fitzgerald, 5th FI. rear, Washington Building . . .
Mrs. Eberts, 719 Washington Building . ........... .. . ,
Total
Remarks :
7
r t
iGL^3fg-
a s
'
-3 O utstanding con sp ira cy c a se s brought t o t r i a l during th e year
in clu d ed :
Samuel Z e tz e l and th r e e c o n fe d e r a te s, sen ten ced a t Boston t o
se r v e a t o t a l o f 1 ,2 7 0 days imprisonment and t o t a l f in e s o f $ 3 ,2 0 0 .
The d efendants operated a 1 ,0 0 0 g a llo n s t i l l in Roxbury, M ass., and
d is tr ib u te d n o n -ta x -p a id liq u o r in th e Boston a re a .
V ito G ia llo and 3^o th e r s, g iv en se n ten ce s t o t a l l i n g 15 years
on charges d ev elo p in g from th e o p era tio n , during a p erio d o f se v e r a l
years p r io r t o 1942, o f 17 i l l i c i t d i s t i l l e r i e s s c a tte r e d over h a lf
a dozen New York c o u n tie s .
Isad o re M. lich tig m a n and seven o th e r s, sen ten ced on p le a s of
g u ilt y t o co n sp ira cy in th e o p era tio n o f a la r g e d i s t i l l e r y in New
York C ity , t o a t o t a l o f 1 ,2 6 3 days in p r iso n .
^ ¿ rth o n ^ B ru n o C a se lla and f i v e cod efen d a n ts, g iv en se n ten ce s
t o t a l l i n g 540 days on p le a s o f g u ilt y t o p o sse s sio n o f a la r g e
i l l i c i t s t i l l in P h ila d e lp h ia .
George Edward Dryden and th r e e o th e r s , each sen ten ced a t
B altim ore to tw enty months1 imprisonment on p le a s o f g u ilt y t o con
sp ir a c y in th e o p era tio n o f 19 i l l i c i t d i s t i l l e r i e s in WorChester
and Somerset c o u n tie s , Maryland between 1937 and 1942.
R o sie Copeland and e ig h t o th e r s, sen ten ced a t Greensboro, North
C arolin a, to se n ten ce s t o t a l l i n g 7 yea rs fo r t r a f f ic k in g in i l l i c i t
liq u o r .
-oOo-
-
2-
O p p o rtu n ities fo r lu c r a tiv e employment in war in d u s t r ie s was
another co n tr ib u tin g f a c t o r t o th e d e c lin e in F ederal v io la t io n s «
Fourteen southern s t a t e s continued to o f f e r th e c h ie f problem
t o enforcem ent o f f i c e r s , th e s e s t a t e s acco u n tin g fo r 96 p ercen t o f
th e i l l i c i t s t i l l s s e iz e d in 1943, and fo r 80 p ercen t o f th e a r r e s t s .
For th e e n t ir e country, s t i l l s e iz u r e s during 1943 f e l l ju st
sh ort o f th e 6 ,0 0 0 mark, compared w ith 8 ,0 0 0 in 1942; a r r e s t s
t o t a l l e d 1 0 ,3 3 6 , compared w ith 14,120 in 1942«
A m illio n d o lla r s ' worth o f p ro p erty , in c lu d in g c a r s , tr u c k s,
and ta x p a id s p i r i t s in v o lv ed in liq u o r law v io la t io n s , sseaee s e iz e d
during th e year; w h ile an a d d itio n a l $ 1 ,7 6 0 ,0 0 0 worth o f "legal**
liq u o r was s e iz e d on which owners f a i l e d t o pay f lo o r ta x e s imposed
by th e 1942 revenue act«
Work o f th e agffin-tc in f lo o r ta x i n v e s t i
g a tio n s s in c e November, 1942, when th e le v y became e f f e c t iv e ^ h a v t ^
y ie ld e d more than §*¡¿§6,000 a d d itio n a l revenue«
A lcoh ol Tax o f f i c i a l s a ttr ib u te d th e in c r e a s e in i l l i c i t d i s
t i l l e r i e s s e iz e d in th e f i n a l th r e e months o f 1943 t o more l ib e r a l
r e le a s e o f sugar f o r canning p u rp oses, some o f which was d iv e r te d ,
as w e ll as t o some t r a f f i c in c o u n te r f e it or s t o le n r a tio n stamps«
The s c a r c it y o f ta x paid s p i r i t s and h igh p r ic e s p r e v a ilin g tended
to tem pt p o t e n t ia l m oonshiners«
O ffic e r s stru ck out a t th e c lo s e o f th e year a t what appeared
t o be a d ev elo p in g , w e ll o rgan ized , w e ll fin a n ced sp u riou s liq u o r
t r a f f i c , cen tered in th e New York-New J ersey a r e a .
In one s e r ie s
o f r a id s , 56 persons were a r r e s te d , and la r g e q u a n titie s o f s p i r i t s ,
b o t t le s and la b e ls were s e iz e d .
F ollow up r a id s produced s e v e r a l
i l l i c i t c u ttin g and b o t t lin g e sta b lish m e n ts.
Elmer 1 . I r e y , C hief C oordinator o f Treasury Enforcement Agencies,
today rep orted to S ecreta ry Morgenthau t h a t th e A lcoh ol Tax U nit
m
- ’£
d riv e t o dry up Black Market liq u o r su p p lie s a lr e a d y /h a s had a s a lu
ta r y e f f e c t , and th a t sc o r e s o f in v e s t ig a t io n s n earin g th e sta g e of
cou rt a c tio n should se r v e fu r th e r t o curb t h i s t r a f f ic *
In dictm ents o f major o ffe n d er s have been ob tain ed in such key
c i t i e s a s Chicago, Kansas C ity , St* P a u l, C levelan d , B altim ore, Mew
York and P h ila d e lp h ia .
The U n it, a d iv is io n o f th e Bureau o f In te r
n a l Revenue, co n cen trated i t s a g en ts in to t h i s f i e l d in th e c lo s in g
months o f 1943 when p r ic e c o n tr o l v io la t io n s appeared t o be d evelop
in g on a c o n sid er a b le sc a le *
<2
A" I
P a ls if ic a t i o n o f re co r d s, f a ilu r e to o b ta in proper p erm its, and
o th er v io la t io n s o f th e Rav-egao laws are b ein g charged to Black
Market o p era to rs, w h ile D i s t r i c t A ttorneys in many c a se s are bringing
* charges under th e P r ic e C ontrol Act on ev id en ce su p p lie d by Treasury
ag enIto
ts **,
/
. \ ^
x
^
~T
V
/+ *-
: Stew art B erk sh ire, head o f tl e U iliti, rep o rted ^ th a t in s p it e o f
an upward tren d in s e iz u r e s o f i l l i c i t s t i l l s in th e c lo s in g months
o f 1943 > such v io ^ Q ^ fe c f o r th e year a s a whole were down sh a rp ly ,
a t new low l e v e l s s in c e th e r e p e a l o f R a tio n a l P r o h ib itio n .
The
volume o f n o n -ta x -p a id t r a f f i c , as rep resen ted by th e q u a n tity o f
mash s e iz e d a t i l l i c i t d i s t i l l e r i e s , d e c lin e d more than 40 p ercen t
from th e r e l a t i v e l y low l e v e l o f 1942*
Wartime r a tio n in g o f sugar, which became e f f e c t i v e in A p ril
1942, and g a s o lin e and t i r e r a tio n in g made i t in c r e a s in g ly d i f f i c u l t
fo r v io la t o r s o f th e In te r n a l Revenue liq u o r laws t o o p era te,
Mr. B erkshire s a id .
TREASURY DEPAK&SBBS
Washington
F O R RELEASE, M O R N I N G .REWSPAPERS,
Sunday, F e b r u a r y 6, 1944.
•
1-25'-44
•
*
.
Press Service
Ro. 40-44
‘
Rimer L, Irèy, Chief Coordinator of Treasury Enforcement
Agencies, today reported to Secretary Morgenthau that the Alco
hol Tax Unit drive to dry up Black Market liquor .supplies has
had a salutary effect, and that scores of investigations near
ing the stage of court action should serve further to curb this
traffic.
;
Indictments of msjor offenders have been obtained in such
key cities as Chicago, Kansas City, St*. Paul, Cleveland, Balti
more, Few York and Philadelphia^ The' Unit,, a division 'of the
Bureau of Internal Revenue, concentrâted,its agents into this
field in the closing months of -1943 when price control viola
tions appeared to be developing on a considerable scale*.
While Black Market ‘operators -generally deal Ihr tax-paid
spirits, and their activities therefore violate primarily the
laws and regulations of the Office of Price Administration,
the Treasury has acted to prevent criminal elements from en
trenching themselves in the liquor industry and thereby creat
ing a threat to the future administration of taxes on alcohol* Falsification of records, failure to obtain proper permits,
and other violations of the Federal law's are being charged to,
Black Market operators,-while District Attorneys in many cases
are bringing charges under the Price Control: Act on evidence
supplied by Treasury agents,
•
.
UP
-At- the same time Stewart Berkshire,, head of the Unit, re
ported Continued enforcement activities against moonshiners
and other manufacturers of illicit liquor,
He said that in
spite of an upward trend in seizures of illicit stills in the
closing months of 1943,- such seizures for the year as a whole
were down sharply, at new low levels since the repeal of
Rational Prohibition,
The volume of non-tax-paid traffic, as
.represented by the quantity of mash seized at illicit dis
tilleries, declined more than 40 percent from the relatively
Tow level of 1942,’Wartime. rationing of sugar, which became effective in
April 1942, and gasoline and tire rationing made it increas
ingly difficult for violators of the Internal Revenue liquor
laws to operate, Mr* Berkshire saidt
-
2-
O p p o r t u n i t i e s for l u c r a t i v e e m p l o y m e n t in w a r i ndustries
was a n o t h e r . c o n t r i b u t i n g f a c t o r to t h e d e c l i n e in F e d e r a l v i o l a
t i ons .
'
-
: i ;/ A t ' V f
F o u r t e e n so u t h e r n states c o n t i n u e d to offer t h e chief p r o b
l e m to enfo r c e m e n t officers, t h e s e states a c c o u n t i n g f o r 96 pefcent of t h e illicit stills s e i z e d in 1 9 4 3 , -and for 80 p e r c e n t of
th e arrests.
F o r t h e entire country, s t i l l s e i zures d u r i n g ’1943 f e l l oust
short of t h e 6,000 mark, c o m p a r e d w i t h 8,000 in 1 9 4 2 ; a r r e s t s
t o t a l l e d 10,336, co m p a r e d w i t h 1 4 , 1 2 0 in 1942.A m i l l i o n d o l l a r s ’ w o r t h of property,, i n c l u d i n g cars, trucks,
a n d t a x - p a i d spirits i n v o l v e d in l i q u o r l aw violations, was seized
d u ring t he year; while an a d d i t i o n a l ^ 1 , 760,000 w o r t h of ‘l e gal
l i q u o r was seiz e d on w h i c h owners f a i l e o t o p a y f l o o r t a xe s i m
p o s e d b v t h e 1942 r e v e n u e act.
W o r k of t h e i n v e s t i g a t o r s in froor
t a x i n v e s t i g a t i o n s s i nce November, 1 9 4 2 , whe n t h e l e v y b e c a m e
effective, has
y i e l d e d m o r e t h a n s?5 , 300,000 a d d i t i o n a l revenue*
A l c o h o l Tax of f i c i a l s a t t r i b u t e d t h e inc r e a s e in illicit
d i s t i l l e r i e s seized In t h e f i n a l t h r e e mont h s of 1943 to mor e
-liberal r e l e a s e of s u g a r for c a n n i n g purposes, som e of w h i c h was
diverted, as w e l l as to some t r a f f i c in c o u n t e r f e i t or stolen
•ration stamps, .The s c a r c i t y of t a x - p a i d spirits a n d h i g h prices
p r e v a i l i n g t e n d e d to t e m p t . p o t e n t i a l m o o n s h i n e r s .
Officers s t r u c k out at the close of t h e y e a r at w h a t appeared
to be a developing, w e l l organized, w e l l f i n a n c e d s p u r i o u s liquor
traffic, c e n t e r e d in t h e N e w Y o r k - N e w J e r s e y area*
In one series
of raids, 56 p e r s o n s w e r e arrested, a n d l a rge q u a n t i t i e s of
spirits, b o t t l e s a nd l a b e l s w e r e seized*
F o l l o w up raids p r o
d u c e d s e v e r a l illicit cutting a n d b o t t l i n g e s t a b l i s h m e n t s , ,
O u t s t a n d i n g c o n s p i r a c y cases b r o ught to t r i a l
y e a r included:
during t h e
S a m u e l Zetzel a n d t h r e e confederates, s e n t e n c e d at B o s t o n
t o serve a t o t a l of 1 , 2 7 0 d a y s ’ i m p r i s o n m e n t a n d t o t a l f i nes of
|3,200,
T h e defe n d a n t s o p e r a t e d a 1 , 0 0 0 g a l l o n s t ill in H o x b u r y ,
Mass., a n d d i s t r i b u t e d n o n - t a x - p a i d l i q u o r in t he B o s t o n area.
V i t o Griallo a n d 33 others, given s e n tences t o t a l l i n g 15 years
on charges d e v e l o p i n g f r o m t h e operation, d u r i n g a p e r i o d of sev
eral years p r i o r to 1942, of 17 Illicit d i s t i l l e r i e s s c a t t e r e d
over h a l f a dozen N e w Y o r k counties.
Isadore M« l i c h t i g m a n a n d seven o t h e r s , ■ s e n t e n c e d on pleas^
of g u i l t y to c o n s p i r a c y in t h e o p e r a t i o n of a large d i s t i l l e r y in
l e w Y o r k City, to a t o t a l of 1,265 days in prison.
A n t h o n y B r u n o C a s e l l a and. f i v e codefendants, g i v e n s e n tences
t o t a l l i n g 540 days on pleas of g u i l t y to p o s s e s s i o n of a large
il l i c i t s t ill in P h i l a d e l p h i a .
' G e o r g e E d w a r d D r y d e n a n d t h r e e others, each s e n t e n c e d at
B a l t i m o r e to t w e n t y m o n t h s ’ i m p r i s o n m e n t on pleas of g u i l t y to
c o n s p i r a c y in t he o p e r a t i o n of 19 illicit d i s t i l l e r i e s in
W o r c h e s t e r and S o m e r s e t counties, M a r y l a n d b e t w e e n 1 9 3 7 , a n d 1942.
R o s i e C o p e l a n d a n d eight others, s e n t e n c e d at Greensboro,
N o r t h Carolina, to s e n t e n c e s t o t a l l i n g 7 y e ars f o r t r a f f i c k i n g in
illicit liquor.
**-0Oo-
TEäASDRY V&ÂXimet
cL v
Washington
FOB ESLSÂSB, W M 1 W } BEPSPAPERS#
Wednesday* January 26. 19A4«
Press Service
j^Secretary of the Treasury Morgenth&u announced last night that the
subscription books for the current offering of 0.90 percent Treasury
llotes of Series 0-1945# open to the holders of Treasury Certificates of
Indebtedness of Series A-1944 maturing February 1, 1944# sill close at
the close of business tonight# January 26.
^^Subscriptions addressed to a Federal Reserve Bank or Branch, or to
the Treasury Department# and placed in the «ail before 12 o*clock mid
night, Wednesday, January 26, «dll be considered as having been entered
before the close of the subscription books*
Announcement of the amount of subscriptions and their division
among the several Federal Reserve Districts will be made later*
6 0 »
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORN IRC NEWSPAPERS,
Wednesday, January 26, ,194-4«
1-25-44 ‘
Press Service
.^°* 4-0-45
Secretary of the Treasury Morgenthau announced
last night that the subscription books for the current
offering of 0.90 percent Treasury Notes of Series D-1945,
open to the holders of Treasury Certificates of Indebt
edness of Series A - 1944’ maturing February 1, 1944, will
close at the close of business tonight,
January 26*
Subscriptions addressed to a Federal Reserve Bank
or Branch,
or to the Treasury Department, and placed
in the mail before 12 o ’clock midnight, Wednesday,
January 26, will be considered as having been entered
before the close of the subscription books.
Announcement of the amount of subscriptions and
their division among the several Federal Reserve Dis
tricts will be made later.
-oOo-
p
make— a substantial payment in some instances— others will find that they
have already paid too much and are entitled to a refund*
«1 »?puld aiprccirW -ft-ti if everyone noted the wording at the top of the
— '
,
c
short form of return tfForm 1040A), which says, Read this first:
You probably
have paid a substantial part of your 1943 tax bill through withholding or
directly to the government.
foim.
You may have underpaid or overpaid. File this
It tells you a n d jour government whether you owe any more, or are
entitled to any r e f i ^ ^ ^ ^ /
Q
™
same principle, of course, applies to the long form (Form 1040).
In effect, the filing of a return this year is a settling-up affair, and the
important thing is to fill out the return early and find out where you stand.,f
connection with the refunds which many taxpayers will receive as a
>ointed out that this is
result of filing 1943 returns ,
the method provided by law for iioning out any inequities
may result from the approximate nature of the withholding tax.
that
Because of
these refunds, he said, all workers can be assured that, in the long run, they
lose nothing by the working of the withholding system.
-— >
Wage earners will be aided in the preparation of their returns by receipts
(on Form W-2) which employers are required to give to employes to show the
amounts of wages paid and the amount of income and victory tax withheld during
the calendar year 1 9 4 3 .
7?
These are the two key figures on any wage earner's retum|
who .¿owod ’
t
also should receive by mail from the
m
collector of internal revenue
n
they filed their 1942 return a statement
showing the. total liability and the amount paid on their 1942 tax returns.
statement (on Form 1125) is not a bill.
This
It is intended only as a convenience
to the taxpayer, since it supplies two more key figures needed for filling in
a 1943 return.
_
-
0
-
3
Ady&mJb Pot1 iflai rplaosio nftegaooa .pappyo of"Feb. 1~
T M
*
Y
o
PjroPosfed /Press /Statement iFor relieve itfj^he i
^ O fetofesA iy Wphmgj/011/an®, / o r ^ u j^ le ra e & ta l
{
aisti&biatipn by ^oxleictors
M------
j
\ J f -
Commissioner of Internal Revenue, reminded all
wage earners today that the new 1943 individual income and victory tax return
blanks are on the pay-as-you-go basis and that returns are required by law
even though most wage earners already have paid all or a large part of their
1943 tax by withholdings from their wages. Returns also are required by law even
thoughgstimated tax was paid on a "declaration" in September or December,
fill taxpayers will help themselves and the government by filling out
and filing their returns as soon as possible, the commissioner said.
An
estimated 50,000,000 returns must be filed between now and March 15 and every
effort should be made to avoid last-minute crowds.
■
rns are required by law of persons who during the calendar year 1943
(a) were single and had $500 or more income, (b) were married and had more tha
$624 income, {c ) were married and together with wife or husband had combined
income of #1,200 or more, or (d) paid or owed a tax on 1942 income.
Postpone
ment or extensions are allowed for persons outside the country on March 15,
especially members of the armed forces, and to the wife of a serviceman abroad
if her own income was less than $1,200.
1"Since the pay-as-you-go system is still fairly new,tf GemmiDcionear B sefbss^ e
commented, "it is not u n o a g o o w that some misunderstanding remains about the
relation of 1943 returns to the withholding payments.
J
;r quite simple.
Nearly all of us have paid at least
part of our 1943 taxes under the pay-as-you-go plan.
the amounts were
rly approximate.
But whatever we have paid,
The law requires us, now that 1943
has ended, to fill .in a return and find out exactly how much our taxes were.
Then we can compare the exact tax with the amounts we actual.ly paid under the
pay-as-you-go system.
Some of us will find we have an additional payment to
Press Service
No.
mr-w
Tr e a s u r y d e p a r t m e n t
Washington
FOR RELEASE AFTERNOON NEWSPAPERS
Tuesday, February 1. 1944»
1/25/44
Press Service
No, 40-46
Harold N, Graves, Acting Commissioner of Internal Revenue, reminded
all wage earners today that the new 1943 individual income and victory
tax return blanks are on tfie pay-as-you-go basis and that returns are
required by law even though most wage earners already have paid all or
a large part of their 1943 tax by withholdings frcm their wages,
Returns also are required by law even though estimated tax was paid on
a “declaration" in September or December.
All taxpayers will help themselves and the government by filling out
and filing their returns as soon as possible, Mr. Graves said. An
estimated 50,000,000 returns must fee filed between now and March 15 and
every effort should be made to avoid last-*minute crowds.
^ Returns are required by law of persons who during the calendar year
1943 (a) were single and had $500 or more income, (b) were married and
had more than $624 income, (c) were married and together with wife or
husband had combined income of $1,2Q0 or more, or (d) paid or owed a tax
on 1942 income, Postponements or extensions are allowed for persons
outside the country on March 15, especic^lly members of the armed forces,
and to the wife of a serviceman abroad if her own income was less than
||l, 200,
"Since the pay-as-you-go system is still fairly new," Mr. Graves
commented, "it is not unlikely that some misunderstanding remains about
the relation of 1943 returns to the withholding payments,
"The explanation is really quite simple. Nearly all of us have paid
at least part of 1943 taxes under the pay-as-you-go plan. But whatever
we have paid, the amounts were only approximate. The law requires us,
now that 1943 has ended, to fill in a return and find out exactly how
much our taxes were. Then we can compare the exact tax with the amounts
we actually^ paid under the pay-as-ybu-go system. Seme of us will find we
have an additional payment to make— a substantial payment in seme
instances— others will find that they have already paid too much and are
entitled to a refund,
"It would be helpful if everyone noted the wording at the top of
the short form of return (Foim 1040A), which says, »Read this first;
You probably have paid a substantial part of your 1943¡'tax bill through
withholding or directly to the government. You may haVe underpaid or
overpaid. File this form. It tells you and your government whether
you owe any more, or are entitled to any refund’, *
»»The same principle, of course, applies to the long form (Form 1040).
In effect, the filing of a return this year is a settling-up affair, and
the important thing is to fill out the return early and find out where
you stand,"
2
In connection with the refunds which many taxpayers m i l receive as
a result of filing 1943 returns, Graves pointed out that this is the
method provided by law for ironing out any inequities that may result
from the approximate mature of the withholding tax. Because of these
refunds, he said, all workers can be assured that, in the long run,
they lose nothing by the working of the withholding system.
T/age earners will be aided in the preparation of their returns by
receipts (on Form W-2) which employers are required to give to employes
to shoyr the amounts of wages paid and the amount of income and victory
tax withheld during the calendar year 1943. These are the tyro key
figures on any wage earner’s return.
^All persons who filed income-tax returns last March also should
receive by mail from the collector of internal revenue yith whom they
fileu their 1942 return a statement shoyrilng the total liability §nd the
amount paid on their 1942 tax returns. This statement (on Form 1125)
is not a bill. It is intended only as a convenience to the taxpayer,
since it supplies two more key figures needed for filling in a 1943
return.
oOo
yo -y7
POR IMMEDIATE RELEASE,
January 25. 1944»
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas for
the 12 months commencing October 1 , 1943» provided, for in the Inter^American
Coffee Agreement, proclaimed by the President on April 15, 1941, as follows?
Country of Production
Authorized for entry
:
;
for consumption
j Quota Quantity J
: (Pounds) 1/ i As of (date) : (Pounds)
Signatory Countries?
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
EL Salvador
Guatemala
Haiti
Honduras
Mexico
Hicaragua
Peru
Venezuela
Hon-signatory Countries?
2j
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
ft
288,264,948
150,095,732
2,550,278
2,717,052
4,476,153
12,221,967
9,464,108
15,136,970
5,410,472
1,336,909
18,912,762
721,232
438,035
13,362,889
It
1,991,349
Jan. 15, 1944
tl
«1
It
It
II
II
11
ft
If
It
It
|t
Quotas as established by action of the Inter^American Coffee Board on
January 12, 1944*
TREASURY DEPARTMENT
Washingt on
Press Service
No. 40-47
FOR XMEDIATE RELEASE,
Wednesday, January 26, 1944.
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the auotas
for the 12 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
f ollows t
Country of Production
:
Authorized for entry
for consumption
: Quota Quantity :
: (Pounds)
: (Pounds) 1/ : As of (date)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
1j
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
it
288,264,948
150,095,732
2,550,278
2,717,052
4,476,153
12,221,967
9,464,108
15,136,970
5,410,472
1,336,909
18,912,762
721,232
438,035
13,362,889
it
1,991,349
Jan. 15, 1944
it
u
it
it
it
it
ti
ti
it
ii
ti
ii
Qpotas as established by action of the Inter~ .American Coffee Board on
Januarv 12, 1944.
oOo-
-3 for such bills/ whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as trdinary gain or loss.
Treasury Department Circular No. 41B, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
-
2
-
Reserve Banks and Branches, /following which public announcement will be made by the
Secretary of the Treasury of the amount and nrice 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 from any 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 Bank
in cash or other immediately available funds on
February ^
1944
,
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasuryr bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of' taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets. Accordingly, the
The income derived from Treasury bills, whether interest or gain from
owner of Treasury bills (o^her than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT
Washington
fö
FOR RELEASE, MORNING NEWSPAPERS,
Friday. January 28« 19LL
*
4
Î
Î
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1.000,000,000 , or thereabouts, of
91-day Treasury bills, to be issued
w
r
on a discount basis under competitive and fixed—price bidding as hereinafter pro
vided.
The bills of this series will be dated
mature
May
l
interest.
I9AA
February 3> 194A
t and will
, when the face amount will be payable without
fj
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p. m., Eastern Wap time, Monday, January 31 j 194^
.»
; ^
Tenders will not be received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on.the printed forms and for
warded in the special envelopes which will be supplied b y Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated banks and
trust companies and from responsible and recognized dealers in investment securi
ties.
Tenders from others must be accompanied by payment of 2 percent of the face
■amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty^of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, January 28, 1944.
1-2^7-44
The Secretary of the Treasury, by this public notice,
invites tenders for $ 1 , OOP,000,000, or thereabouts, of 91-day
Treasury bills, to be issued on a discount basis u n d e r compet
itive an d fixed-price bidding as hereinafter provided.
The
bills of this series will be dated February 3, 1944, and will
mature May 4, 1944, when the face amount will be payable without
interest.
They will be issued in b e arer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o*clock p.m., Eastern W a r
time, Monday, January 31, 1944.
Tenders will not be received
at the Treasury Department, Washington.
Ea c h tender must be
for an even multiple of $1,000, and the price offered must be
expressed on the basis of 100, wi t h not more than three decimals,
e. g., 99.925.
Fractions m a y not be used.
It is urged that
tenders be made on the printed forms and forwarded in. the
special envelopes w h i c h will be, supplied b y Federal Reserve Banks
or Branches on application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities.
Tenders from others must be
accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment b y an incorporated bank or
trust company.
Immediately af t e r the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following w h i c h
public announcement will be made b y the Sec r e t a r y of the
Treasury o f the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or re
jection thereof.
The Secretary of the T r e a s u r y expressly
reserves the right to accept or reject any o r all tenders, in
whole or in part, and his action in a n y such respect shall be
final.
Subject to these reservations, tenders for $100,000 or
less from a n y one b i dder 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 Bank in cash or other immediately available funds on
February 3, 1944.
The income derived fr o m T r e a s u r y bills, whether interest
or gain fr o m the sale or other disposition of the bills, shall
not have an y exemption, as such, and loss from the sale or
other disposition o f Treasury bills shall n ot have any special
40-48
(Over)
i
#Sf
■I
; |p ip
■ ■■ •
•
;-
: |
|
. .. fel
••
,
•
treatment, as such, under* Federal- tax Apts n o w pr hereafter
enacted#
The bills shall be subject to estate, inheritance^
gift, or other excise taxes, w hether Federal Of?,.Ifita* but
shall be exempt from a l l :t a c t i o n n ow or hereaftey imposed on
the principal or interest thereof h y any S t a t e , or any of the
possessions <§f the United S t a t e s , on b y any 'local taxing
, / authority#
For purposes of. taxation the amount pf discount at
# 1 ich Treasury bills are originally sold b y the Unit e d States
shall be considered to be interest § Under Sections 48 and 117
(a) (1) o f the Internal Revenue C o d e * as amended ^y Section 115
of the Revenue Act of 1 9 4 1 , .the amount of discount at whifh
bills issued hereunder are sold shall not be considered to
accrue until such bills shall be sold, redeemed or otherwise
disposed of, and such bills are excluded from consideration
as capital assets.
Accordingly, the owner o f Treasury bills
(other than life insurance companies) issued hereunder need
include in his income tax re turn only the difference between
the price paid for such bills, whether on original issue or on
subsequent purchase, and the amount actually received .e£thep
upon sale or redemption at m a t u r i t y during the taxable year for
whi c h the turn is made, as ordinary gain or loss*,.
I“
' 1 •_
||
| || '
1
Treasury Department Circular No* 418; as amended| and this
notice, prescribe the terms of the Treasury b i l J f .and gover^
the conditions of their issue * Copies of the circular m a y i)e
obtained from any Federal Reserve Bank or Branch*
o
Qq
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
_________________
Press Service
No*
-
The Treasury Department announced today that it had re
ceived the first contribution for carrying out the President’s
new program of help to Jews and other persecuted minorities in
enemy or enemy-occupied territory* This contribution was
prompted by the recent action of the President in establishing
the War Refugee Board. Tbe gift was in the form of a check for
$10*00 on a small bank in a midwe stern town* It was accompanied
by the following letter:
Today we learned for the first time that President
Roosevelt has ordered actual measures for the rescue
of those Jews and other people still under Hitler’s
heel* My wife and myself are among those fortunate
Jewish people, who after years of persecution and
concentration camps found jrefuge and a real home in
the blessed U.S.A. Our only sorrow concerns the fate
of our dear old mother, 77, and our friends, who were
taken, 16 months ago, out of their homes to some un
known place.
*1 am 61, and my wife is 52, so we are not able to
make much money, especially as we were not used to
hard physical work* That is, why we are not able to
send more than thfcsf $10, - which we ask you to accept
as our contribution for this good cause.
*We are living in this small Ohio town where we were
received and accepted as equals among friends we never
met before. We will show our gratitude to this Country
by doing everything in our limited power.11
TREASURY" DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Thursday, January 27, 1944«
PRESS SERVICE
No. 40-49
The Treasury Department announced today that it had re
ceived the first contribution for carrying out tlie P r e s i d e n t ’s
new prog r a m of help to Jews and other persecuted minorities in
enemy or enemy-occupied territory.
This contribution was
prompted b y the recent action of the President in establishing
the W a r Refugee Board.
The gift was in the form of a check for
$10.00 on a small bank in a midwestern town.
It was accompanied
by the following letter;
’’Today we learned for the first time that President
Roosevelt has ordered actual measures for the rescue
of those Jews and o ther people still un d e r H i t l e r ’s
heel*
My wife a nd m y s e l f are among those fortunate
Jewish people, who a f t e r years of persecution and
concentration camps found refuge and a real home in
the blessed U.SeA*
Our only sorrow concerns the fate
of our dear old mother, 77, and our friends, who were
taken, 16 months ago, out of their homes to some u n
known p l a c e 0
”1 a m 61, and m y wife is 52, so we are not able to
make m u c h money, especially as we were not used to
hard physical work.
That is, w hy we are not able to
send more than this $10, - which we ask you to accept
as our contribution for this good cause.
”We are living in this small Ohio town where we were
received and accepted as equals among friends 'we n ever
met before.
We will ¡diow our gratitude to this Country
by doing everything in our limited p o w e r . ” '
oOo
70R IMMEDIATE RELEASE
January 27. 1944 --- -
The Bureau of Oust cm 8 announced today that preliminary
reports from the collectors of customs show that the tariff
rate quota of 22,000,000 pounds of Cuban filler tobacco, not
specially provided for, unetemmed or steamed (other than cigarette
leaf), and scrap tobacco was approximately 95 percent filled by
entries and warehouse withdrawals presented during the period of
January 1 to January 10, 1944, inclusive*
Since the Bureau anticipated that the quotas might be filled
on January 1 or shortly thereafter, it required the deposit of
estimated duty at the rates in effect on August 24, 1924, on
all entries and withdrawals filed on and after January 3*
%on
receipt by the Bureau of complete reports from all customs
officers for the period in which the quota may be filled the
collectors of customs will be advised as to the particular entry
or withdrawal, or portions thereof, coming within the quota in
order that any excessive duties may be refunded*
/
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday, January 27* 1944»
Press Service
^°* 40-50
The Bureau of Customs announced today that preliminary
reports from the collectors of customs show that the tariff
rate quota of 22,000,000 pounds of Cuban filler tobacco,
not specially provided for,
than cigarette leaf),
unstemmed or stemmed (other
and scrap tobacco was approximately
95 percent filled by entries and warehouse withdrawals p r e
sented during the period of January 1 to January 15, 1944,
inclusive.
Since the Bureau anticipated that the q u o t a s :might be
filled on January 1 or shortly thereafter,
it required the
deposit of estimated duty at the rates in effect on
August 24,
1934,
on all entries and withdrawals filed on
and after January 3.
Upon receipt by the Bureau of c om
plete reports from all customs officers for the period in
which the quota may be filled the collectors of customs
will be advised as to the particular entry or withdrawal,
or portions thereof,
coming within the quota in order that
any excessive duties may be refunded.
-oOo-
-im *.->I
-3Its b i g s e n d o f f
came on J u l y 4, 1940,
ing thirty-five nationalities,
H e x t s t e p w as to
with fitting public
zati o n ce r t i f i c a t e s .
w h e n 8 , 0 0 0 persons,
represent
m a r c h e d in an ” 1 A m A n A m e r i c a n ” parade,
e m p h a s i z e t h e i m p o r t a n c e of A m e r i c a n citizenship
c e r e m o n y a t t e n d i n g t h e d i s t r i b u t i o n of n a t u r a l i
Mor e than 5,000 have been added to the citizen
s hip r o l l s s i n c e t h e c o m m i t t e e w as
o r g a nized#
P r o m this b e g i n n i n g t h e w o r k of t h e c o m m i t t e e s p r e a d into
p h a s e of c o m m u n i t y life.
The city's l e a d e r s g i v e t o it m u c h of t h e
c r e d i t f o r B r i d g e p o r t ’s g r e a t r e c o r d o f l a b o r - m a n a g e m e n t
its h i g h s h o w i n g in W a r B o n d p u r c hases,
a n d in e v e r y o t h e r p h a s e of t h e w a r
cooperation,
a n d B l o o d B a n k donations,
effort#
" H ere a r e p e o p l e f r o m e v e r y w a l k of life,
k e e p t h e i r s h irts on, to r o l l with**a punch,
w a r t i m e livi n g
every
c h e e r f u l l y a n d o b jectively,
w h o h a v e l e a r n e d to
to f a c e t h e p r o b l e m s
a n d t o face c o n t r o v e r s i a l
m a t t e r s w i t h o u t p e r m i t t i n g t h e i r m i n d s t o be d i s t o r t e d b y l u rid
s u s p i c i o n s of one a n o t h e r ” , Mr. B o w r e p o r t e d t o Mr. M o r g e n t h a u .
T h i s is t h e B r i d g e p o r t t h e T r e a s u r y S e c r e t a r y w i l l i n t r o d u c e
to t h e N a t i o n guarda;^ flight*
-oOo-
of
-
2-
T o d a y at B r i d g e p o r t a r e b e i n g m a d e t h e f a m e d B a z o o k a
gun, m a c h i n e guns,
r a d a r equipment,
w e b b i n g f o r p a r a c hutes,
carbines,
c a r t r i d g e cases,
torpedoes,
planes,
or rocket
s t raps a n d
a n d dozens of
o t h e r a r t i c l e s of war.
O n a p e r c a p i t a basis,
C o n n e c t i c u t h o l d s f i r s t r a n k in t h e
n a t i o n in t h e v a l u e o f w a r c o n t r a c t s p l a c e d w i t h h e r industries,
and
m o r e than o n e - f o u r t h o f t h e st a t e * s t o t a l of n e a r l y $ 6 , 0 0 0 , 0 0 0 , 0 0 0
represents
contracts placed with Bridgeport
factories#
The u n u s u a l c o m m u n i t y s p i r i t t h a t has f e a t u r e d e v e r y w a r t i m e
a c t i v i t y at B r i d geport,
f r o m b o n d sales to bullets,
a p r o j e c t l a u n c h e d b y its leaders
developed fro m
in 1939*
A
'
Recognizing the peculiar problems arising from a cosmopolitan
population,
p r o b l e m s t h a t d u r i n g t h e f i r s t W o r l d W a r m a d e t h e city
JL
a constant/headache for President Wilson*s
l a b o r board,
t h e s e leaders
o f j ^ o W e m m e n t , l a b o r a n d b u s i n e s s d e t e r m i n e d t h a t h i s t o r y s h o u l d not
repeat itself at Bridgeport.
A m o n g t h e s e l e a d e r s w e r e s u c h men as M a y o r J a s p e r Mclevy;
R o b e r t A*
Crosby,
e x e c u t i v e v i c e - p r e s i d e n t o f t h e C h a m b e r of Commerce;
C o l o n e l Hei
Bridgeport
F e d e r a t i o n of L a b o r o r g a n i z a t i o n s ;
a n d J o s e p h Juli a n e l l e ,
C o n g r e s s o f I n d u s t r i a l O r g a n i z a t i o n s group.
groups
h e a d of the
R e p r e s e n t a t i v e s of racial
joined in t h e d i s c u s s i o n s #
T h e o u t c o m e w as t h e o r g a n i z a t i o n o f a communii
f o r p o s i t i v e action, u n d e r t h e t i t l e
H a r o l d B. Low,
e c o m mittee
nI Am A n A m e r i c a n . ”
p r e s e n t d i r e c t o r of p u b l i c r e l a t i o n s o f t he
B r i d g e p o r t B r a s s Company,
t o o k on t h e job o f o r g a n i z i n g t h e committee.
S)
*■
W h e n S e c r e t a r y M o r g e n t h a u re s u m e s h i s r o l e
to t h e K a t i o n S u n d a y ? e v e n i n g ^
P e o p l e " bro a d c a s t ,
aeleneso
Bond Salesman
as m a s t e r o f c e r e m o n i e s on a "We th e
h e w i l l s p e a k f r o m a c o m m u n i t y t h a t t y p i f i e s the
o f p u r p o s e a n d u n i t y of s p i r i t e s s e n t i a l tò victory.
Army and Navy
" E ” flags f l y i n g o v e r 32 of its i n d u s t r i a l plants
t e s t i f y to t h e p r o d u c t i o n r e c o r d s b e i n g set b y Bridgeport,
the o r i g i n a t i n g p o i n t of t h e C o l u m b i a N e t w o r k program,
o ’clock,
J v**- I
U "
f .H .
Connecticut,
set f o r 7 s 30
Eastern Wa r ( T i m e , ^ ^ ? u a r y ^ <
OThis w i l l b e Mr, M o r g e n t h a u ’s t h i r d a p p e a r a n c e as n a r r a t o r on
a ”W e t h e P e o p l e ” p r o g r a m d e v o t e d t o W a r B o n d
The o u t s t a n d i n g p e r f o r m a n c e of t h e C o n n e c t i c u t
c i t y ’s i n d u s
t r i e s m a k e s it a l o g i c a l p o i n t f r o m w h i c h to c a r r y t h e B a c k t h e
A t t a c k m e s s a g e to t h e n a t i o n .
Y e t t h e i m p r e s s i v e f i g u r e s of m u n i
t i o n s o u t p u t do n o t t e l l t h e e n t i r e story.
B a c k of t h e m is an
e x t r a o r d i n a r y s o l i d i f i c a t i o n of c i t i z e n s h i p b e h i n d a l l - o u t p r o
d u c t i o n --- a s p i r i t t h a t h a s u n i t e d m a n a g e m e n t a n d l a b o r a n d o f f i
cialdom,
creeds,
t h a t has f u s e d p o p u l a t i o n s e g m e n t s r e p r e s e n t i n g t h i r t y - s i x
r a c e s a n d c o l o r s --- a ll i n t o a m i g h t y c o m m u n i t y effort.
P r o u d as it is of its c o n t r i b u t i o n of w a r materiel,
Bridgeport
is p r o u d e r s t i l l of its s p i r i t u a l a c h i e v e m e n t w h i c h its le a d e r s feel,
will insure industrial prosperity and continued municipal advance
m e n t w h e n t h e tim e comes
f o r c o n v e r s i o n to p e a c e t i m e m a n u f a c t u r e .
B ridgeport g o t. in to th e b u sin e ss o f producing fo r war^eaapiy-.
As fa r back as s i x y ears ago, one o f i t s p la n ts was tu rn in g out
machines f o r th e S o v ie t Union in day and n ig h t s h if t s *
In 1939,
th e B r it is h and th e French turned t o B rid gep ort, and goods made in
th e C onn ecticu t c i t y h elp ed London d e fe a t th e b l i t z a tta c k o f th e
Luftwaffe.
I
He will interview during
t h e ^ b r o a d c a s t l a b o r leaders
v^ilcQ m ^ d e p o s s i b l e t h e
u f e t ÿ existing between
labor and management.
(This
unity, B r i d g e p o r t boasts,
has m a d e it p o s s i b l e f o r its
w a r i n d u s t r i e s to o p e r a t e
w i t h o u t t h e loss of a s i n g l e
man-hour since Pearl Harbor
TREASURY DEPARTMENT
Washington
FOR UŒM8DIÀTE RELEASE, •
Friday, January 28, 1944.
1-27-44
Press S e r v i c e « ^ ^
No. 40-51
When Secretary Morgenthau resumes his role of Bond Sales
man to the Nation Sunday evening, as master of ceremonies on
a ”We the People” broadcast, he will speak from a community
that typifies the oneness of purpose and unity of spirit essen
tial to victory.
Army and Navy ”E ” flags flying over 32 of its industrial
plants testify to the production records being set by Bridgeport,
Connecticut, the originating point of the Columbia Network pro
gram, set for 7:30 o ’clock, Eastern War Time, January 3 0 .
This will be Mr, Morgenthau’s third appearance as narrator
on a ”We the People” program devoted to War Bond sales.
He will
interview during the broadcast labor leaders who
made possible
the unity existing between labor and management.
This unity,
Bridgeport boasts, has made it possible for its war industries
to operate without the loss of a single man-hour since Pearl
Harbor.
The outstanding performance of the Connecticut ci t y ’s
industries makes it a logical point from which to carry the
Back the Attack message to the Nation.
Yet the impressive fig
ures of munitions output do not tell the entire story.
Back of
them is an extraordinary solidification of citizenship behind
all-out production-- a spirit that has united management and
labor and officialdom, that has fused population segments rep
resenting thirty-six creeds, races and colors— -all into a
mighty community effort.
Proud as it is of its contribution of war materiel, Bridge
port is prouder still of its spiritual achievement which, its
leaders feel, will insure industrial prosperity and continued
municipal advancement when the time comes for conversion to
peacetime manufacture.
Bridgeport got early into the business of producing for
war. As far back as six years ago, one of its plants was turn
ing out machines for the Soviet Union in day and night shifts.
In 1939, the British and the French turned to Bridgeport, and
goods made in the Connecticut city helped London defeat the
blitz attack of the Luftwaffe.
-
2-
Today at B r i d g e p o r t ar e b e i n g mad e t h e f a m e d B a z o o k a or
r o c k e t gun, m a c h i n e guns, r a d a r equipment, c a r t r i d g e cases,
straps a n d w e b b i n g f or parachutes, carbines, torpedoes, planes,
a n d dozens of other a r t i c l e s of war.
On a p er capita basis, C o n n e c t i c u t h o l d s first r a n k in t h e
N a t i o n in t h e v a l u e of w a r contracts p l a c e d w i t h h er industries,
a n d mor e tha n o n e - f o u r t h of t h e s t a t e ’s t o t a l of n e a r l y
$6,000,000,-000 r e p r e s e n t s c o n t r a c t s p l a c e d w i t h B r i d g e p o r t f a c
tories .
T h e u n u s u a l c o m m u n i t y spir i t that has f e a t u r e d every w a r t i m e
a c t i v i t y at Bridgeport, f r o m b o n d sales to bullets, d e v e l o p e d
from
a p r o j e c t l a u n c h e d b y its l e aders in 1939*
Recognizing the peculiar problems arising from a cosmopoli
ta n population, p r o b l e m s that d u r i n g t h e f i r s t W o r l d W a r m a d e t he
c i t y a constant h e a d a c h e f o r P r e s i d e n t V/ilson’s l a b o r board,
t h e s e l e a ders of government, l a b o r a n d b u s i n e s s d e t e r m i n e d that
h i s t o r y s h o u l d not r e p e a t itself at Brid g e p o r t .
A m o n g t h e s e le a d e r s w e f e s u c h men as M a y o r J a s p e r Me L e v y ;
R o b e r t A. Crosby, exe c u t i v e v i c e - p r e s i d e n t of t he C h a m b e r of
Commerce; C o l o n e l H e r m a n W. Steinkraus, p r e s i d e n t a n d g e n e r a l
m a n a g e r of t h e B r i d g e p o r t B r a s s Company; W. St e w a r t Clark, g e n
eral m a n a g e r of t h e G e n e r a l E l e c t r i c Company;* P e t e r Benard, h e a d
of t h e A m e r i c a n P e d e r a t i o n of L a b o r o r ganizations; a n d J o s e p h
Julianelle, h e a d of t h e C o n g r e s s of I n d u s t r i a l O r g a n i z a t i o n s
group.
R e p r e s e n t a t i v e s of r a c i a l groups joined in t h e d i s c u s
sions .
T h e ou t c o m e was t h e o r g a n i z a t i o n of a c o m m u n i t y - w i d e c o m
m i t t e e for p o s i t i v e action, u n d e r t h e t i tle ”1 A m A n A m e r i c a n , ”
H a r o l d B, Low, p r e s e n t d i r e c t o r of p u b l i c r e l a t i o n s of th e
B r i d g e p o r t Brass Company, t o o k on t h e job of o r g a n i z i n g t h e c o m
mittee,
Its b i g s e n d - o f f came on J uly 4, 1940, ■w h e n 8 , 0 0 0
persons, r e p r e s e n t i n g t h i r t y - f i v e nation a l i t i e s , m a r c h e d in an
” 1 A m A n A m e r i c a n ” parade.
N e x t step was to emp h a s i z e t h e i m p o r t a n c e of A m e r i c a n c i t i
ze n s h i p w i t h f i t t i n g p u b l i c c e r e m o n y a t t e n d i n g t he d i s t r i b u t i o n
of n a t u r a l i z a t i o n certificates.
M o r e t h a n 5 , 0 0 0 h a v e b e e n 1a d d e d
to the c i t i z e n s h i p rolls since the c o m m i t t e e was organized.
-3From this beginning the work of the committee spread into
every phase of community life.
The ci t y ’s leaders give to it
much of the credit for Bridgeport’s great record of labormanagement cooperation, its high showing in War Bond purchases,
and Blood Bank donations, and in every other phase of the war
effort.
"Here are people from every walk of life, who have learned
to keep their shirts on, to roll with a punch, to face the prob
lems of wartime living cheerfully and objectively, and to face
controversial^matters without permitting their minds to be dis
torted by lurid suspicions of one another", Mr* Bow reported to
Mr. Morgenthau.
This is the Bridgeport the Treasury Secretary will introduce
to the Hation..
■&
-0 O 0 -
f
S e c r e t a r y Morgenth.au
fa u * i
--— cruj hav e "been a s s u r e d p e r s o n a l l y
Wahoo,
h as
to sel e c t i v e
p e o p l e in his
has,
Placek,
Ne b r a s k a b a n k e r a n d C h a i r m a n of S a u n d e r s C o u n t y W a r
F i nance Committee,
over
that Mr. E m i l E.
s c r a p p e d h i s i l l - a d v i s e d p l a n to turn
service and r a t i o n boar d s the names
c o u n t y who r e f u s e
of course,
never
to b u y War Bonds*
i s s u e d a n y orders
of
Washington
that c o u l d be construed
to i n d icate tha t we f a v o r a n y suc h p r e s s u r e m e t h o d s as w ere
p l a n n e d in Saunders County,
is a n t a g o n i s t i c
to
Ne b r a s k a *
more generously
more aware
length,
s u b s c r i b e d g e n e r o u s l y to
the p r e s e n t W a r L o a n are s u b s c r i b i n g even
than i n the past.
of the
seriousness
a n d the h o r r i b l e
ing at the h a nds
As
t h e y b e c o m e m ore and
of the war,
and its p r o b a b l e
t r e a t m e n t that our m e n a re
of our b l o o d - t h i r s t y enemies,
w i l l s u b s c r i b e even mor e h e a v i l y .
B
sort of a c t i v i t y
the v e r y s p i r i t of the v o l u n t a r y system*
^Th e A m e r i c a n people h a v e
W ar Bonds and in
This
suffer
the peop l e
c o n f i d e n t of that.
re is no n e e d to take d i c tatorial a c t i o n i n the matter,
and I h a v e
United
ar d o p e d tnat a n y s u c h a c t i v i t y a n y w h e r e
A
in the
States be i m m e d i a t e l y d i s c o n t i n u e d if it ha s a l r e a d y
started.M
?
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N EWSPAPERS,
Sunday, J a n u a r y 30, 1944,
Press Servie
No. 40-52
S e c r e t a r y M o r g e n t h a u t o day i s s u e d the f o l l o w i n g s t a t ement
I hav e b e e n a s s u r e d p e r s o n a l l y that Mr. Emil E.
Placek, W a h o o , N e b r a s k a b a n k e r a n d C h a i r m a n of
Sau n d e r s C o u n t y W a r Finance C o m m ittee, has sc r a p p e d
his i l l - a d v i s e d p l a n to tur n over to s e l e ctive
service a n d r a t i o n b o a r d s the n a m e s of p e o p l e in
his coun t y w h o refuse to b u y W a r Bonds.
'Washington
has, of course, n e v e r issued a n y orders that could
be c o n s t r u e d to indicate that we favor a n y s u c h
p r e s s u r e m e t h o d s as w e r e p l a n n e d in S a u n d e r s
County, N e b r a s k a .
This sort of a c t i v i t y is a n t a g
onistic to the very s p i r i t of the v o l u n t a r y
system.
The A m e r i c a n p e o p l e have s u b s c r i b e d g e n e r
o u s l y to W a r Bonds a n d in the p r e s e n t W a r L o a n are
s u b s c r i b i n g e v e n m o r e g e n e r o u s l y than in the past.
As t h e y b e c o m e m o r e a n d m o r e a w a r e of the s e r i o u s
n e s s of the war, a n d its p r o b a b l e length, a n d the
h o r r i b l e tr e a t m e n t that our m e n are s u f f e r i n g at
the hands of our b l o o d - t h i r s t y enemies, the
peop l e will s u b s c r i b e even m o r e heavily.
I a m c o n fident
of that.
m
T h e r e is no n e e d to take d i c t a t o r i a l a c t i o n
in the m a t t e r , a n d I hav e r e q u e s t e d that a n y s uch
a c t i v i t y a n y w h e r e in the U n i t e d States be i m m e
d i a t e l y d i s c o n t i n u e d if it has a l r e a d y started.
32 -
THIS IS MILO BOULTON AGAIN SAYING THANK
YOU TO THE PEOPLE OF BRIDGEPORT,
CONNECTICUT, AND TO THE SECRETARY OF THE
TREASURY, HENRY MORGENTHAU, JR., FOR
BEING WITH US ON TO THE PEOPLE TONIGHT.
THE GULF OIL COMPANIES AND YOUR NEIGHBORHOOD
GOOD GULF DEALER HAVE BEEN PROUD TO HAVE
MADE THIS SPECIAL BROADCAST OF TO THE
PEOPLE POSSIBLE.
NEXT SUNDAY THE GULD OIL
COMPANIES WILL BRING YOU ANOTHER PROGRAM
OF TO THE PEOPLE; WITH OSCAR BRADLEY AND
HIS ORCHESTRA AND ANOTHER GRAND GROUP OF
AMERICANS BRINGING YOU THE KIND OF
EXPERIENCES YOU HEAR ONLY WHEN WE THE
PEOPLE SPEAK
3
Morgenthaur
f .
News like that makes our blood boili
But, the flash of
our immediate anger blinds us to an important fact; that this latest outrage
of the Jap monsters is not so unusual after all; that it is but part of a
proven pattern of Axis atrocities; a scheme forged in the hell-fires of hatred
a program of bestial cruelty —
of its horrori
deliberate, fever-increasing in the intensity
Yes, this is but the newest link in the chain of evidence
which will anchor in Hell the souls of Japanese and German* leaders for
Remember the rape of Lidice,
Remember the fixKJdtk fifty thousand
Russians hanged by the Germans at Gomel,
MA KKo V
Remember Saratov —
and Smolensk where
the population were tortured and murdered.
Tomorrow, and for as many tomorrows as there shall be in this war, we
shall continue to hear of further murderous crimes committed by the Axis,
that isjirhy we must limit those tomorrows —
And
end them, once and for all, with
ifuick and complete Victory.
The Japanese and the Germans hope, by their frightfulness to scare us
into quitting.
Well, our answer to that is the job being done tmteyxtfpc day in and day
out by Mr. and Mrs. America —
Bridgeport, Connecticut, h,S,A,
you people —
yes, the people of cities like
- 30 ONE AMERICAN OFFICER WAS BEHEADED.
AND
TWO OTHERS WERE SHOT AFTER THEY HAD DANGLED
FOR TWO DAYS IN THE BROILING SUN WITH THEIR
ARMS TIED BEHIND THEM.
BODIES OF AMERICAN AND FILIPINO SOLDIERS
WHO HAD BEEN KILLED IN THE LAST HOURS OF
BATTLE (SN BATAAN TORE CRUSHED AND SMASHED
BY JAPANESE TRUCKS WHICH RAN OVER THEM
DELIBERATE^
SICK, THE STARVING AND THE WOUNJED
WERE COMPELLED TO MARCH MILE AFTER MILE
FOR DAYS WITHOUT F00lT0R~IAiE£.
THEY TORE
TNT0~MCLOSURES WHICH REEKED OF THE
STENCH OF THE LIVING AND THE DEAD — MEN TOO
DIED FROM STARVATION, THIRST AND DISEASE,
29 ~
SEC. MORGENTHAU:
NOW HERE IS A WAR WORKER FROM BRIDGEPORT
WHO KNOWS THE REAL COSTS OF WAR.
WORKER:
I HAD A SON ON BATAAN.
YOU KNOW M A T ' S
HAPPENED TO OUR BOYS THERE.
TO TELL YOU.
I DON'T HAVE
NOT EVERY WAR WORKER IS GOING
THROUGH WHAT I HAVE GONE THROUGH THESE LAST
48 HOURS.
BUT THEY ARE WORKING HARD — -
JUST AS HARD AS I A &
OVER.
WE WANT THIS WAR
AND THE ONLY WAY TO DO IT IS TO PUT
EVERYTHING WE HAVE GOT INTO IT.
SEC. MORGENTHAU:
"EVERYTHING WE'VE GOT".
CAN POSSIBLY SAVE.
EVERY NICKEL WE
IS THAT TOO MUCH TO ASK
WHEN WE HEAR FROM THE LIPS OF AMERICANS SUCH
THINGS AS T H I S / .
VOICE:
m WERE MADE TO SIT IN THE BOILING SUN ALL
DAY
' • WITHOUT rCOVER.
.
iX.WE HA^W E:R.■.Y.. LITTLE
WATER. O U R a E I R ^ a i J N T ^ S E . MANY OF
US WENT CRAZY.«. SEVERAL DIED.
THREE
FILIPINO AND THREE AMERICAN SOLDIERS WERE
BURIED WHILE STILL ALIV?,
|
-
KING:
;28
-
THE MEN OF THE NAVI, MARINE CORPS, AND
(cont.)
COAST GUARD INVEST OVER TWENTY MILLION
DOLLARS A MONTH IN THE UNITED STATES
WAR BONDS, SO THAT THEY ARE AMONG THE
GREATEST BOOSTERS FOR THE WAR LOAN
DRIVE.
THIS YEAR, AS NEVER BEFORE, WE
NEED OUR FULL FIGHTING STRENGTH,
A VAST
LANDING CRAFT QONOTRUffH-eN PROGRAM HAS
BEGUN.
IT WILL COST MORE THAN FIVE
BILLION DOLLARS.
ONE OUT OF EVERY FOUR
DOLLARS THE NAVY WILL EXPEND DURING THE
NEXT ELEVEN MONTHS WILL GO INTO THAT
PROGRAM.
UPON ITS COMPLETION DEPENDS TO
A GREAT MEASURE THE SUCCESS OF THE
FORTHCOMING OPERATION.
WAR BONDS WILL
PROVIDE THE MEANS TO BUILD THESE U N D I N G
CRAFT.
TO EVERY AMERICAN CITIZEN AND
WAGE EARNER, I MAKE THE APPEAL TO BUY
WAR BONDS.
LET YOUR DOLLARS FIGHT FOR
VICTORY AND FOR FREEDOM FCR AMERICA BUY WAR BONDS.
(osftfsrnr)
(H ff i CUE NOT TETS S T)
- 27 KING:•
THE PHILLIPINES, AND MOST OF THE ISLANDS
(cont.)
OF THE CENTRAL AND SOUTH PACIFIC IN THE
EARLY MONTHS OF THE WAR.
NOT WE .IRE
FACED WITH THE TASK OF DISPOSSESSING
HIM FROM THESE AREAS WHICH HE SO QUICKLY
GAINED AND WHICH WE NEED BEFORE OUR ATTACK
ON HIS HOMELAND CAN BE ACCENTUATED.
WE
HAVE STARTED THIS UPHILL MARCH; WE HIVE
ALREADY PUT THE ENEMY ON THE DEFENSIVE.
AS WE PROGRESS, HIS LINES OF COMMUNICATIONS
WILL BE SHORTENED; THE THOROUGHNESS OF HIS
PREPARATIONS FOR DEFENSE WILL IMPROVE,
WHICH WILL INCREASE THE DIFFICULTY OF
ATTAINING VICTORY.
THERE CAN BE LITTLE
WONDER THAT THE FIGHTING MAN LOOKS WITH
SOMEWHAT INCREDULOUS EYES UPON THESE
CITIZENS AT HOME WHO THINK THE -WAR IS
WON.
IS IT WON WHEN THERE IS A JAP
SNIPER IN THE NEXT TREE, AND WHEN THAT
JAP IS STILL OVER 2,000 MILES FROM TOKIO?
OUR FIGHTING MEN WANT THIS WAR OVER.
THEY WANT TO COME HOME, BUT NOT UNTIL A
VICTORY IS GAINED.
TO SPEED THAT DAY,
26 KING:
WHAT WE ACCOMPLISH DURING THIS YEAR OF
ATTACK WILL DIRECTLY AFFECT THE LENGTH
OF THE WAR, AND THE PRICE IN AMERICAN
LIVES TO BE PAID FOR FINAL VICTORY.
THE
MORE THAN 14,000 SHIPS AND 27,000 PLANES
M I C H NOW COMPRISE OUR NAVAL FORCES THAT
ARE REQUIRED TO OPERATE IN MANY OCEANS,
AGAINST DETERMINED AND RESOURCEFUL ENEMIES.
MOST OF THE MEN WHO MAN THEM HAVE RECENTLY
COME FROM CIVILIAN LIFE, BUT THE JOB THAT
THEY ARE DOING TODAY IS MAGNIFICENT.
HAVE GIVEN UP MANY PRIVILEGES.
THEY
THEY KNOW
THAT DISCIPLINE AND UNQUESTIONED OBEDIENCE
ARE NECESSARY IN MILITARY OPERATIONS.
MEN
WHO HAVE SEEN ACTION KNOW BEST THE
IMPORTANCE OF THESE PRINCIPLES.
TO SOME
PEOPLE AT HOME THE WAR MAY SEEM REMOTE.
IT MAY BE BOTH EASY AND PLEASANT TO DWELL
ON THE PROGRESS, AND THE VICTORIES OF THE
PAST YEAR, AND TO THINK THAT THE WAR IS
ALMOST WON.
SO OFTEN OUR MEMORIES ARE
SHORT: EVEN NOW IT MAY BE DIFFICULT FOR SOME
TO REMEMBER HOW QUICKLY THE ENEMY OVERRAN
- 25 -
SEC. MORGENTHAU:
THANK YOU MR, 0 1BRIEN AND MR, BENARD.
LABOR, MANAGEMENT AND THE ARMED FORCES,
FIGHTING,SIDE BY SIDE WILL WIN THE WAR '0 m
THE BRIDGEPORT KIND, OF LABOR AND MANAGEMENT
COOPERATION jg u COUPLED WITH THE AMERICAN
FIGHTING FORCES UNDER THEIR ABLE AND
DISTINGUISHED LEADERS♦ WE TAKE YOU NOW
TO WASHINGTON WHERE YOU WILL HEAR FROM
ADMIRAL ERNEST J. KING, USN, COMMANDERIN-CHIEF OF THE UNITED STATES FLEET
AND CHIEF OF NAVAL OPERATIONS, SPEAKING
FROM HIS FLAGSHIP, THE U.S.S.DAUNTLESS.
COME IN ADMIRAL KING.
'WADIIIN
- 24 -
Ed O'BRIEN
(CONT.)
ALONG.
TOLL, T O ’RE HERE TO PROVE THEY
CAN GET ALONG**' Vl/E’RE D O U G IT HERE IN
BRIDGEPORT m AND T O 1RE GOING TO KEEP ON
DOING IT/Tx
AND I KNOW I CAN ALSO SPEAK FOR
PETER BENARD, CHISR OF THE iM m im HERE IN
BRIDGEPORT.
PETE HAS FIVE CHILDREN— ONE
SON WITH THE AIR FORCE IN ENGLAND — AND
FIVE GRANDCHILDREN.
BENARD:
RIGHT YOU ARE, ED*
RIGHT PETE?/
IN OUR CITY, OUR
UNIONS DON'T BELIEVE IN FIGHTING TOTH EACH
OTHER — OR WITH UNORGANIZED LABOR, EITHER.
W E ’RE BOTH WORKING FOR THE FELLOW THAT'S
WORKING FOR A LIVING. I SPEAK FOR THE
UNIONS AS WELL AS MANAGEMENT WHEN I SAY THAT
OUR RESPONSIBILITY AS AMERICANS HAS UNITED '
US TO WIN THE WAR AND KEEP THE PEACE.
- 23 -
SEC. MORGENTHAU:
HERE TONIGHT, WE HAVE MET THE PEOPLE OF
BRIDGEPORT.
PEOPLE UNITED IN T H O U G H T ^
ACTION/^AND SPIRIT. THEY HAVE TRANSLATED
/
THAT UNITY INTO THE TOOLS OF WAR - BY
WORKING IN HARMONY - BY LIVING IN HARMONY BY POOLING THEIR SKILLS AND THEIR MONEY
FOR ONE PURPOSE - TO "BACK THE ATTACK".
LEADERS OF MANAGEMENT
M
LIKE MR. STEIN-
KRAUS, WHOM WE MET EARLIER^
WORK'
CLOSELY WITH LEADERS OF LABOR LIKE THE
TWO MEN HERE WITH US NOW.
ED O'BRIEN:
W
NAME IS O'BRIEN** ED O'BRIEN-vw AND I
j
y
INSPECT SHELL-CASINGS OVER AT BRIDGEPORT
BRASS,
BUT I'VE GOT ANOTHER JOB *3? I'M
SERVING AS HEAD OF THE BRIDGEPORT CIO.
THERE'S SOMETHING I'D LIKE TO GET OFF MY
CHEST HERE TONIGHT* IT MAKES ME A LITTLE
SICK TO PICK UP NEWSPAPERS AND READ STORIES
ABOUT HOW MANAGEMENT IS SUPPOSED TO BE
FIGHTING LABOR^AND LABOR IS SUPPOSED TO BE
_J
FIGHTING MANAGEMENT^AND NOBODY CAN GET
-
CAMPBELL:
22
«
MR* SECRETARY,
THOUSANDS OF ENGINES ARE
O'
BEING SENT BACK TO THE UNITED
STATES FOR
i;
REPAIR.
EVERYTHING^
EVEN SMALL LENGTHS
OF CABLE ARE SALVAGED.
I SAW PLANES THAT
RETURNED FROM THE RAID ON THE *RUMANIAN
.
OIL FIELDS WITH HOLES IN THEIR WINGS AS
BIG AS A MAN.
WAS USED.
BUT EVERY SALVAGEABLE PART
TO SHOW YOU TO WHAT LENGTHS
OUR MEN GO TO SALVAGE EQUIPMENT, LET ME
TELL YOU ABOUT ONE SOLDIER.
A *P-38 HAD
CRASHED IN THEN sGERMAN-HELD
TERRITORY IN
■
AFRICA . f NEAR THE LITTLE FRENCH TOWN OF
y
TORQUEZ,
~
BEFORE THE TOWN WAS RETAKEN,
THE GERMANS MINED THE PATH LEADING UP TO
m
0^
THE P-38.
*
WHEN THIS e-AMERICAN SOLDIER
APPROACHED THE P U N E TO SALVAGE IT, HE WAS
KILLED BY A MINE.
I REACHED TORQUEZ THE
NEXT DAY AND WAS ASKED TO OFFICIATE AT HIS
FUNERAL — ONE AMERICAN
AMONG HUNDREDS OF
*
FRENCHMEN. THEY GAVE THAT AMERICAN SOLDIER
A MILITARY FUNERAL WITH ALL POSSIBLE HONORS,
FOR AS THEY TOLD ME, HE DIED IN AN EFFORT
TO HELP MAKE OUR AMERICAN EQUIPMENT U S T FOR
s*
ALL THE ALLIES AS LONG AS POSSIBLE.
MORGENTHAU:
THANK YOU, COLbNEL CAMPBELL*
21
-
SEC. MORGENTHAU:
-
DID t©U SEE ANY OF, OUR EQUIPMENT GOING TO
R U S S I A ^ COLONEL CAMPBELL?
CAMPBELL
M
\
YES SIR, I\SAW IT COMING THROUGH THE PERSIAN
\
&
GULF. ON THE CEMENT PAVEMENT OF IRAN THE
TEMPERATURE WAS, 180 DEGREES, AND NO TIRES
\
IN THE WORLD COULD TAKE IT AS OURS DO.
I'VE
SEEN HUNDREDS OF TRACKS ON THE ROAD TO
\
RUSSIA AND MANY OF THE, OVER 2,000 AMERICAN
PLANES
M HAVE SENT THE®,
\
YOU WAR WORKERS
IN BRIDGEPORT CAN FEEL A PERSONAL PRIDE IN
HAVING HELPED MAKE THAT EQUIPMENT, FOR THESE
\
TRUCKS AND PLANES WERE IMPORTANiN fACTORS IN
THE DEFENSE OF STALINGRAD
AND THE sCAUCASUS.
9
s\
SEC. MORGENTHAU:
COLONEL CAMPBELL, A FEW MONTHS AGO POTENT
TO SICILY AND ONE OF OUR GENERALS TOOK ME TO
9
A GIANT FACTORY WHERE ENEMY EQUIPMENT WAS
BEING OVERHAULED FOR OUR OWN USE.
LATER,
IN CAIRO, I SAW AMERICAN'ENGINES WHICH HAD
SEEN HARD FIGHTING SERVICE BEING OVERHAULED
N
BY NATIVE HELP.
-
SEC. MORGENTHAU:
20
~
I KNOW THE WAR WORKERS OF BRIDGEPORT WOULD
'
*
LIKE TO HEAR YOUR CONCLUSIONS, COLONEL.
CAMPBELL:
THE EQUIPMENT OUR WAR-WORKERS MAKE IS THE
BEST IN THE WORLD, 0M^-SSGRETA8Y.
&
FOR
EXAMPLE, OUR TWO AND A HALF TON SIX BY
SIX TRUCK. SIX BY SIX MEANS THAT IT HAS
POWER IN EACH OF ITS SIX WHEELS.
ALMOST ANYWHERE.
IT CAN GO
OUR BOYS GET A GREAT
KICK OUT OF TEE BAZOOKA AND THE HAND
GRENADE THEY FIRE OFF THE END OF THE
SPRINGFIELD RIFLE.
SEC. MORGENTHAU:
YES, I KNOW, FOR ON MY OWN TRIP TO JTALY
I SAW BOTH OF TEEM IN ACTION MEN I WAS AT
THE FRONT WITH •sGENERAL CLARK.
YES.^^HE GERMANS CALL THE BAZOOKA THE
'■'FRENCH 75 A MAN CAN HOLD IN HIS HANDS AND
SHOOT." AND. I’VE SEEN A FELLOW FIRE A
GRENADE OFF HIS SPRINGFIELD AND HIT A GERMAN
MACHINE-GUN NEST AT 900 FEET. BUT THE MOST
STARTLING EQUIPMENT I SAW WEI
[HE DETECTION
DEVICES. A FIGHTER PILOT IN
¿LAND TOLD ME
/
THAT. THANKS TO THEM. NIGHT-FIGHTING HAD NOW 0
/
BEEN MADE ALMOST AS CERTAIN AS FIGHTING BY
DAY.
- 19 SEC. MORGENTHAU:
AN flERICAN BOY IS KILLED IN THE
phi|lii$ nes .
INCREASED PRODUCTION IN HIS
HOME T&/N SHOUTS OUR *NATION'S
ANGER. A
•»
REPLY, 'THE FORCE OF WHICH HAS ALREADY BEEN
FELT BY THE JAPANESE.
AN ANSWER MEASURED
<*•
CAMPBELL:
THANK YOU, MR. SECRETARY,
I
HAVE JUST RE
TURNED FROM AN ELEVEN-MONTHS' TOUR OF MANY
OF OUR FIGHTING FRONTS. MY JOB WAS TO
REPORT TO GENERAL FRANK ON THE MAINTENANCE
AND SALVAGE OF ALL AIR FORCE EQUIPMENT.
IN ALGIERS, GENERAL EISENHOWER DIRECTED ME
TO MAKE A REPORT ON ALL ARMY EQUIPMENT.
-
SPACE:
(cont.)
18
-
I GOT A TELEGRAM. THE JAPS HAD KILLED MY
BOY ARTHUR WHEN THEY BOMBED NICHOIS FIELD.
ARTHUR WAS THE FIRST BRIDGEPORT BOY TO BE
KILLED IN THIS WAR. THEN HIS BROTHER,
DOUGLAS, WENT INTO THE AIR CORPS TOO.
I
THANK GOD THAT I AM STRONG ENOUGH TO WORK
IN A WAR PUNT - TEE ALUMINUM COMPANY OF
AMERICA, AND THAT EVERY POUND OF OUR
ALUMINUM GOES RIGHT INTO THE WAR. SOME
OF IT MAY BE IN THE VERY PUNE MY BOY,
DOUGUS, WILL FLY IN. HE WILL BE AN AERIAL
GUNNER, LIKE ARTHUR WAS. OUR FAMILY IS
BUYING BONDS, AND DOING ALL WE CAN, LIKE
OTHER BRIDGEPORT FAMILIES, TO AVENGE THE
DEATH OF OUR BOYS. HERE IS ARTHUR’S
CITATION, MR. MORGENTHAU. MAYBE YOU WOULD
LIKE TO READ PART OF IT.
(K 8Sie-Síffiííd_,
MORGENTHAU:
"HE IAS A SOLDIER, AND HE KNEW A SOLDIER'S
DUTY. WE WHO PAY HIM HONOR, AND REVERE
HIS MEMORY, IN SOLEMN PRAYER REDEDICATE
OURSELVES TO
L COMPLETE
FULFILLMENT O
TASK FOR WHICH HE SO GALLANTLY PUCED HIS
LIFE UPON THE ALTAR OF MAN'S FREEDOM.”
17
RICHESON:
IT *S QUITE DIFFERENT FROM THE JOB I HAD
IN THE LAST WAR.
/
A
I WAS IN THE FAMOUS
i ZIEGFELD FOLLIES OF 1918, WITH WILL
t'ROGERS AND EDDIE CANTOR.
IN THIS WAR,
I'M IN THE FACTORY OF MANNING, MAXWELL,
BRIDGEPORT'S MOST FAMOUS CITIZEN WOULD
SAY - IT'S "THE GREATEST SHOW ON EARTH I"
MORGENTHAU
IT CERTAINLY IS. NOW HERE IS A BRIDGEPORT
FATHER WHO HAS A VERY PERSONAL SCORE TO
SETTLE WITH THE AXIS. HE IS 1«. RAY' SPACE.
SPACE:
MY SECOND OLDEST BOY, ARTHUR, WAS 18 WHEN
HE WENT RIGHT INTO THE ARMY AIR CORPS AND
DECEMBER 7TH
-
SEC. MORGENTHAU:
16
-
RIGHT YOU ARE, LOIS. NCI HERE IS
YEAR OLD TONY AlLYO, TONY, ttERE DO YOU
WORK?
TONY:
AT'BRIDGEPORT BRASS.
I WORK THERE IN THE
MORNING, GO TO SCHOOL IN THE AFTERNOON,
AND -DO MY
fk.A
m
W
T'
NIGHT,
I CAN ONLY
PLAY ON SATURDAY AFTERNOONS.
-/ 1
SEC. MORGENTHAU:
YOUR MOTHER MUST BE VERY PROUD OF YOU, TONY,
TONY:
SHE SAYS 1 LEARN THINGS QUICK._
SEC, MORGENTHAU:
YOU'RE PRETTY GROM UP FOR
DO YOU
HAVE A GIRL?
TONY:
WELLrsYEAH I GOT ONE ON THE STRING.
MORGENTHAU:
JUST ONE?
^TONY:
ONE'S ENOUGH, MR. MORGENTHAU,
MORGENTHAU: .
YOU HAVE LEARNED EARLY, NOW, NEXT AT
IE THE- PEOPLE'S MICROPHONE IS MRS. MAXINE
IS.
jgj.
<SSZ.
sz
RlSlESQN. WHAT'S YOUR
y a ti •WAR JOB, MRS,
.
¿S'-
RIffiESON?
- 15 -
MRS. HULTON:
WHY, I WAS ONLY EIGHTEEN DURING THE SPANISH
AMERICA! WAR r r AND USED TO GO TO WORK IN
A GIBSON GIRL DRESS. THERE'S BEEN A LOT
OF CHANGES IN BOTH BULLETS AND DRESSES
SINCE THAT TIMES. BUT TO'RE STILL FIGHTING
FOR THE SAME THINGS X •
MORGENTHÀU:
THOSE THINGS ARE ALWAYS WORTH FIGHTING FOR,
MRS. HULTONit.
MADDEN:
THIS, IS MY ,. ¿ffiST WAR, MR. MORGENTHAU.
MY NAME IS LOIS MADDEN
S'
»
tv
AND I ICE-SKATE,
'
ROLLER SKATE, AND ROW A BOAT TO HELP WIN
THE- WAR.
SEC. MORGENTHAU:
HOW DOES ICE-SKATING HELP IN WAR PRODUCTION,
LOIS?
LOIS MADDEN: .
WELL, I'M IN THE RESEARCH LABRATORY OF
A
REMINGTON ARMS,
I HAYE TO RETRIEVE WABS
FIRED FROM SHOT GUNS, WHEN THEY'RE FIRED
OVER FROZEN LAKES, I SKATE AFTER THEM.
WHEN THE LAKE ISN'T FROZEN, I ROW. I
BRING THEM BACK TO SCIENTISTS W O STUDY
THEM. -BELIEVE ME, TEE ONLY PILLS TO CURE
THE GERMANS AND JAPS ARE AMERICAN BULLETS
AND THE LARGER DOSES, THE BETTER^
- 14 -
MBKTAGE OftVOICES:
MACHINE GUfiS|«g CARTRIDGES# # RIFLESi
#
f ■
v ’*
' "
RADAR#— BAZOOKASrf QUININE# —AIRPLANES#* FLYING SUITS!—
SULFANILIMIDElA
t
i
INSTRUMENT PANELS — MACHINE TOOLS —
ANTI-AIRCRAFT GUNS — LIFEBOATS — CYLINDER
HEADS -PRESSURE GAUGES*— . MORGENTHAU:
ALL'KINDS OF THU GSss-BEING MADE BY ALL
KINDS OF PEOPLE, NOT ONLY HERE IN BRIDGE
PORT, BUT ALL OVER THE COUNTRY. MEN AND
WOMEN AND CHILDREN
tt *WORKING
TT FIGHTING-
FOR AMERICA. OUT IN OREGON, I SAW GRANDp
*
MOTHERS WORKING IN A SHIPYARD#*.
MRS* HULTON:
I'M A GRANDMOTHER, MY NAME IS ELIZABETH
HULTON, MR. MORGENTHAU.
I FIRST WENT TO
WORK FOR REMINGTON ARMS BACK IN 1894.
—
*
THIS IS-MY THIRD WAR MAKING BULLETS FOR
AMERICAN SOLDIERS.
SEC. MORGENTHAU:
— -- — ,
YOURS ISn LSH^DID RECORD, MRS. HULTON£
- 13
STEIMRAUS :
(CONT.)
PARDON MY PRIDE, MR. SECRETARY, ’
M EN I
TELL YOU THAT OUR COMPANY IS ONE OF THE
FEW, I THINK IT IS FOUR, COMPANIES -iff
AMERICA TO WIN THE ARMY-NAVY ”E" FIVE
TIMES.
II
0 DO THAT, IE NOT ONLY
HAD TO KE!
TION UP,^BUT HAD TO
MAINTAIN
'KIND OF LABOR-MANAGEMENT
i
RELATIONS
-EASE PRODUCTION EFFICIENCY,
MAINTAIN (
AND GENERALLY KEEP DOING
A BIGGER JOB AND A BETTER JOB ALL THE TIME.
AND THAT'S THE JOB TOU'LL FIND ALL OF
BRIDGEPORT DOINGwMAMNG TRAINLOADS OF
>
\
FIGHTING EQUIPMENT FOR'AMERICA
'S FIGHTING
Op
SONS Km*
MORGENTHAÜ:
Cififfl**#' (MUSI'C7
THANK YOU, MR. STEINKRAUS*
- 12a STEINKRAUS:
(Cont.)
BRIDGEPORT BRASS EMPLOYEE *
it
■
y
AS A
\
MATTER;OF FACT, ORGANIZED AND UNORGANIZED
LABOR IS DIVIDED UP HERE JUST ABOUT HALF AND
HALF. BUT THE RESULTS ARE WHAT COUNT.,
AND I HOPE YOUTLI
I'VE SEEN IT HAPPEN IN DOZENS OF PLACES“
\
IN PORTLAND, OREGON rr IN CEDAR RAPIDS,
IOTA V ' I N BUFFALO, NEW YORK AND ONLY
LAST TOEK,-1 SAW IT IN CINCINNATII, OHIO.
OUT THERE/'
CREASED ITS
CENT
tt
ANE
HAVE KEPT ï
STEINKRAUS:
“ PLANT THAT HAD IN
N SEVEN HUNDRED PER
KRAUS, BOND SALES
EP
V _ -YES, I KNOW THAT AND ANOTHER THING,
MR. SECRETARY, WITH LABOR AND MANAGEMENT
• j S’*
WORKING TOGETHER, THERE HAVEN'T BEEN ANY
WORK STOPPAGES IN BRIDGEPORT SINCE THE
WAR, THOUGH OUR INDUSTRIAL POPULATION
HAS TRIPLED SINCE 1939.
MANAGEMENT TRIES
TO BE FAIR, AND OUR UNION LEADERS' ARE
FIRST-CUSS AMERICANS - HONEST AND
REASONABLE AND ONLY INTERESTED IN WINNING
THE WAR.
WE'VE GOT REAL TEAM WORK BETWEEN
LABOR,MANAGEMENT AND OUR LOCAL TOWN
OFFICIALS. OUR COMPANY HEADS DQ N ’T
CONSIDER WHETHER A MIN IS A UNION OR A
NON-UNION MAN.
ELECTRIC
HE IS SIMPLY-A GENERAL
A GULF OIL, A BULLARD, OR
>
-
MAYOR MC LEVY :
(cont.)
11
-
BRIDGEPORT BRASS COMPANY, THE MAR TOO
&
;r
HAS DONE MORE THAN ANYONE ELSE TO GET
LABOR AND MANAGEMENT IN BRIDGEPORT OFF
ON THE RIGHT FOOT.
STEINKRAUS:
-MR. SECRETARY, I HAD AN EXPERIENCE IN
THE LAST WAR, WHICH WAS COMMON TO MANY
WORKERS AND MANAGERS HERE IN BRIDGEPORT.
DURING THE BIG PUSH IN FRANCE WE WERE SO
SHORT OF AMMUNITION WE USED WHAT WE CAP
TURED FROM THE £GERMANS. I8- SAW MY BUDDIES
KILLED FOR LACK OF IT. WHEN THIS WAR
BROKE OUT I DETERMINED TO HELP OUR BOYS
GET ENOUGH AND ON TIME. ^ V
told
OUR
EMPLOYEES ABOUT MY'EXPERIENCE AND ASKED
FOR THEIR SUGGESTIONS.
THEN WHEN DONALD
NELSON PROPOSED THAT' LABOR AND MANAGEMENT
COMMITTEES BE SET UP IN WAR PLANTS TO
SWAP IDEAS AND STIMULATE PRODUCTION, HE
DIDN'T HAVE TO URGE US.
SEC. MORGENTHAU:
MR. STEINKRAUS, THIS
LABOR AND MANAGEMENT
P U N IS VERY INTERESTING TO ME, BECAUSE
I HAVE FOUND THAT WHEREVER LIBOR AND
lOAGEMENT GET ALONG, PRODUCTION IS HIGH
1
r
10
-
WE KNOT THEY'RE GOOD AMERICANS, DR. SPRAGUE.
MORGENTIIAU:
i
-
OUR TEAM NEEDS THEM
•.
-
EVERY ONE OF THEM
-
AND WILL CONTINUE TO NEED PEOPLE LIKE
THEM THROUGH THE LONG AND HARD STRUGGLE THAT
LIES AHEAD.
■"MUSIC vmmm
$ m .
11 11*
V
"**
MORGENTHAU:
HSTOFF'"1
MAYOR M(f"LEVY, THE SPIRIT OF YOUR CITY
OF BRIDGEPORT NOT ONLY MAKES AMERICANS
BUT IT ALSO MAKES iAMERICANS
GIVE EVERYf
THING THEY'VE GOT FOR THEIR N A T I O N ^
OH, IT'S SPIRIT, ALL RIGHT, SECRETARY
IE JM Y :
MQRGENTHAU
BUT IT TAKES PLENTY OF
GOOD, OLD-FASHIONED HARD WORK,TOO;
HARD WORK ON THE PART OF THE PEOPLE
OF BRIDGEPORT
«—
M ^ ^ I R LEADERS,.
M JUST HAPPEN TO BE LUCKY IN THAT
^ D E E V I E
llliiilf
1
1
HAVE SOME MIGHTY FINE
MEN -^ESPECIALLY AMONG OUR INDUSTRIAL
AND
LABOR LEADERS.
I ’D LIKE TO HAVE
YOU MEET ONE OF THEM HERE, AS WE THE
i\
#
"=PEOPLE'S NEXT GUESTA
MR. HERMAN STEINKRAUS, PRESIDENT OF THE
- 9
-
MY NAME IS ERNST FROZEN..
HAMBURG, GERMANY.
I HAD A HOME THERE.
I WORKED IN A BANK.
ARRESTED.
I COME FROM
ONE DAY I WAS
I WAS PUT INTO A CONCENTRATION
CAMP FOR THREE MONTHS BECAUSE I
JEW.
FINALLY I WAS GIVEN TWENTY-FOUR HOURS
fp \P
TO LEAVE GERMANY.
WHAT DOES IT MEAN TO
ME TO BE AN AMERICAN CITIZEN?
I CAN WORK AS A MACHINIST.
MAN.
IT MEANS
AS A FREE
IT MEANS I 'CAN WALK THE STREETS
OF BRIDGEPORT WITH MY HEAD HIGH WITHOUT
ANYONE CARING WHETHER; I AM JEWISH OR NOT.
I KNOW THE VALUE OF FREEDOM.
THAT IS
WHY I CONSIDER IT A PRIVILEGE TO BE ABLE
TO LIVE IN THE UNITED STATES.
SPRAGUE :
MR. MORGENTHAU, THESE PEOPLE YOU HAVE
JUST HEARD ARE ONLY A SMALL HANDFUL OF
THE NEW CITIZENS OF BRIDGEPORL^SORE
THAN FIVE THOUSAND HAVE^ANSWERED TO THE
SPIRIT
BEHIND TMf"FIRST "I AM AN
AMERICAN" PARiffi.
THESE PEOPLE ARE
TRULY UNITED - THEY WORK FOR AMERICA
BECAUSE THEY ARE PROUD TO LIVE'IN AMERICA
AND THEIR SONS ARE READY TO DIE FOR AMERICA.
SINGEBrr
Iff NAME IS BESSIE SINGER.
IN RUSSIA.
I WAS BORN
\
THREE N I G H T S ^ C I BECAME •
AN AMERICAN C i m M I
I HAVE FOUR CHILDREN. I
ONE BOY ^ O V E R S E A S IN THE AMERICAN ARMY.
ONE-I5AUGHTER WORKS AT "A WAR PLANT.
BELIEVE'
ME I'M PROUD TO BE AN AMERICAN CITIZEN,
HORNYAK:
I A T J Ü H N HORNYAK FROM HUNGARY.
I WORK
ON-AIRPLANE ENGINES AT THE ALUMINUM
COMPANY OF AMERICA.
ONE OF MY BOYS IS IN
THE Ü.Si^CADET CORPS. 11
HE IS OLD
ENOUGH, HE WILL FLY THE PLANES I HELP TO
MAKE'. WE HORHYAKS WOULD GIVE OUR LIVES
FOR AMERICA - THAT'S HOW MUCH WE LIKE IT.
MELEGBïSKI
ANN MELECINSKY IS MY NAME AND I COME FROM
CZECHOSLOVAKIA.
I HAVE ONE GIRL IN THE
m E & } ONE BOY IN THE ARMY- AND ONE BOY
IN THE NAVY.
I WORK AT GENERAL ELECTRIC.
WHEN I WAS A LITTLE GIRL I LIVED IN EUROPE.
I USED TO PRAY "PLEASE GOD MAKE ME GROW
BIG SO I CAN GO TO AMERICA."
I PUT THAT
FEELING IN MY CHILDREN'S HEARTS AND THEY
FEEL THE SAME.
I WAS HAPPY AS A SLOVAK
BUT I CONSIDER IT AN HONOR TO BE AN
AMERICAN.
I
I
MR. SECRETARY, I AM AN AMERICAN.
DR.
CHARLES SPRAGUE. I AM WHAT A LOT OF
PEOPLE CALL A YANKEE.
MY FAMILY HAS
LIVED IN THESE PARTS SINCE 1628 AND
I'D LIKE TO TELL YOU SOMETHING.
ONLY
THREE NIGHTS AGO IN THIS VEST AUDITORIUM,
1,000 OF BRIDGEPORT'S FOREIGN BORN
POPULATION BECAME AMERICAN CITIZENS.
JOB IS TO WELCOME THE FOREIGN BORN OF OUR
POPULATIOrsAND TO SEE THAT THEY GET TO
BECOME GOOD AFRICANS AS FAST AS POSSIBLE.
WE THE PEOPLE OF BRIDGEPORT TAKE PRIDE
IN BEING AMERICANS .. -BUT WE REALIZE THAT
ALL OF OUR ANCESTORS CAME TO THIS COUNTRY
FROM OVERSEAS - TO START A NEW LIFE. IE
WERE FORTUNATE TO HAVE BEEN BORN HERE.
BUT BECAUSE THESE NEW CITIZENS CHOSE TO
COME TO AMERICA TO LIVE, TO WORK, AND SOME
TO FIGHT AND DIE .. MAYBE THEY KNOW MORE
ABOUT BEING GOOD AMERICANS THAN SOiffi-GF-US
DO.
HERE, MR. MORGENTHAU, ARE SOME OF
THESE PEOPLE fiHOM WE ARE NOT PROUD TO CALL
FELLOW AMERICANS.
- 6 -
'
SEC. MORGENTHAU:
JUST WHAT DID YOU DO?
MAYOR MC LEVY:
THE FIRST THING W&iL4D TO DO WAS TO
»in m u m m m
■
ENTHUSIASM, OUR ABILITIES
AND- olm'pLANS.
JP'='v
mPURPOSE.
M HAD TO ESTABLISH UNITY
WE ORGANIZED A COMMITTEE
UNDER THE TITLE "I AM AN AMERICAN" AND
FIRED OUR OPENING GUN ON JULY FOURTH,
1940, WITH AN "I AM-AN AMERICAN" PARADE ..
EIGHT THOUSAND PEOPLE, REPRESENTING
THIRTY-FIVE NATIONALITIES, MARCHED UNDER
ONE F U G .. THE AMERICAN FLAG.
THIS
PARADE MARKED THE START OF A GREAT RECORD
OF COOPERATION FOR THE WAR EFFORT COOPERATION OF LABOR.AND MANAGEMENT - ^
COOPERATION T U T MEANT WAR-BOND SALES.
THE "I AM AN AMERICAN" SPIRIT U S MADE
ITSELF FELT IN EVERY PHASE OF BRIDGEPORT'S
WAR ACTIVITY.
AND, SINCE T U T DAY IN 1939,
M HAVEN'T LET UP ON ANY OF THE JOBS WE
TACKLED
VICTORY AS FAR BACK AS 1939 .. WITH ONE
P U N T ALREADY WORKING NIGHT AND DAY
SUPPLYING SHELL-CASINGS TO HELP SAVE
LONDON FROM THE BLITZ.
CIVIC, LABOR
AND MANAGEMENT LEADERS KNEW THAT WAR
WAS COMING OUR WAY .. AND THEY BEGAN
TO PREPARE.
ONE OF THOSE LEADERS WAS
MAYOR JAS
MAYOR Me LEVY:
MR/ SECRE TARY,W’ffi KNEW p O -THHNCSr THAT
THE NAZIS WERE GOING TO GET US INTO THE
WAR SOONER OR U T E R .. AND THAT BRIDGEPORT
WOULD B E 'CALLED UPON TO PLAY AN IMPORTANT
PART.
WE DIDN'T RELISH THE IDEA THAT
OUR CITY MIGHT TURN IN THE KIND OF
RECORD IT ACHIEVED IN THE FIRST WORLD
WAR.
AT THAT TIME, NEWLY-RICH WORKERS
SPENT THEIR TIME AND MONEY BUYING SILK
SHIRTS AND CHAMPAGNE.
THERE WERE ONE
HUNDRED STRIKES IN A SINGLE WAR YEAR.
THAT WASN'T FOR US THIS TIME. .BUT,
WERE GOING TO ESCAPE IT
AND ACT FAST '
TO ACT
9
4 -
VOICE #1:
VOICE #2:
VOICE #3:
- 3 “ iA ( f t
BRIDGEPORT IS A CITY OF ROLLER-UP SLEEVES
sa m t^ ia SiSaB*®*®**®*"*1'-'
VOICE #L:
AND OVERALLS .. WORKING SId/ B Y SIDE WITH
\
BANDANAS AND SLACKS.
VOICE #2:
C.I.O. AND A. f Q
L.
o £e N
SHOP 'AND
<OSED SHOP.,3
VOICE #3;
t t f j j ’'
/
r^TOlffiST OF ALL - m STRIKES l
VOICE #1:
BRIDGEPORT, IS A ZITY ALIVE WITH PEOPLE -
VOICE #2:
PEOPLE FROM xH? FORTY-EIGHT STATES
.. | ;
‘
UD POLAND .. GREECE AND
r A N D FROM H
V
TURKEY .. BMlT.-lN U D RUSSIA I \
X L - NO HIS TER R-.CE l
VOICE #3:
AND
VOICE #1:
BRlDGFiPORT IS A CITY o \ SOLDIERS U D
SAILORS - OF WAVES AND W & S U D
.CHINISTS :- —
VOICE #2:
/'CATHOLIC, PROTESTUT, JEW - i^NKEE AND
IMMIGRANT - FfflITE AND NEGRO.
VOICE #3:
AND ALL OF THEM - AMERICANS.
(MUSIC PUNCTUATE)
- 2a SEC. M O R Q E M L'JJ:
MURDERED — HUNDREDS UPON HUNDREDS OF
( f ! O liHiiiaii i II
GALLANT:AMERICAN SOLDIERS.
THE 0:TY OF BRIDGEPCRT IS 4 WAR HERO l
SHE fS GOT THE CAMPAIGN RIBBONS TO PROVE
IT .. THIRTY-TWO ARMY-NAVY ,fEfr FUGS,
FLYING PROUDLY OVER THIRTY-TWO BRIDGEPORT
WAR-PLANTS. ' THOSE PENNANTS TOOK A LOT OF
WINNING ... THEYrRE NOT EASY TO GET.
WHEN AN nEw F U G GOES UP, IT MEANS T U T
THE P U N T OVER M I C H IT FLIES IS MEETING
A TOUGH PRODUCTION SCHEDULE, AND THAT
CAN ONLY HAPPEN WHEN LABOR AND MANAGEMENT
KNOW WHAT THEY ARE FIGHTING FOR .. AND
HOW TO FIGHT FOfTTTTlAND^WnriMD - SIDE
BY SIDE.
THATfS BRIDGEPORT, CONNECTICUT, U.S.A.
MORGENTHÀU
THIS IS HENRY MORGENTHAU, JR.
THANKS OF THE TREASURY^ DEPARTMENT TO
g>0>
THE GULF OIL ^P J g p p FOR MAKING THIS
BROADCAST POSSIBLE'.
I WANT TO TELL
YOU WHY WE fRE IN BRIDGEPORT TONIGHT.
HERE, IN THIS TYPICAL .AMERICAN CITY,
AMERICANS HAVE DONE AND ARE DOING THE
JOB WHICH HITLER THOUGHT WAS IMPOSSIBLE.
HIS MISTAKE MEANS HIS DEFEAT.
TO THE
ENEMY, OUR JOB LOOKED TOO BIG. - OIWNATIO n I
LOOKED TOO SOFT.
AS ITS ANSWER, BRIDGEPORT
HAS DELIVERED A M I G H O SHARE TOWARD THE
NATION'S HUGE PRODUCTION GOALS
At© NOW -HAS COME A FLASH OF NEWS THAT
WILL RESULT IN EVEN MORE ACTION ON THIS
ND EVERY OTHER HOME-FRONT WAR-FRONT. FOR
NOV, BRIDGEPORT KNOWS, AS THE M O L E WORLD
KNOWS THAT THE JAPS HAVE HUMILIATED
STARVED, TORTURED AND MURDERED — HORRIBLY
- WE THE PEOPLE -
.m .
m m tr
w m a m r^
good e v e n i n g , e v e r y o n e ,
t h i s is m i l o
BOULTON WELCOMING YOU TO ,WE THE PEOPLE
FOR THE GULF OIL COMPANIES.• TONIGHT THE
GULF OIL COMPANIES ARE BRINGING WE THE
PEOPLE TO YOU IN A SPECIAL BROADCAST
FROM BRIDGEPORT .. HARD-HITTING BRIDGEPORT
INDUSTRIAL CAPITAL OF CONNECTICUT!^) WITH
THE PEOPLE OF BRIDGEPORT TONIGHT ARE THE
SECRETARY OF THE UNITED STATES TREASURY HENRY MORGENTHÀU, JR., - AND THE COMMANDERIN-CHIEF. OF THE UNITED STATES FLEET AND
CHIEF OF NAVAL ^OPERATIONS - ADMIRAL ERNEST
J. KING, U.S.N^j)
M USTC. fgt3rTrrirF Î1'N lï,l,'w,,#
I
%
TREASURY DEPART3\CSNT
Washington
(The following program, WE THE PEOPLE, featuring Secretary
Morgenthau, at Bridgeport, Connecticut, and broadcast by
the Columbia Broacfcasting System, is scheduled for delivery
January 30.« 1«944 at 7:30 PM. Eastern War Time, and is for
release at that timea)
ANNOUNCER
Good evening, everyone«, This is Milo Boulton welcoming you to WE THE
PEOPLE for the Gulf Oil Companies® Tonight the Gulf Oil Companies are
bringing WE THE PEOPLE to you in a special broadcast from Bridgeport —
hard-hitting Bridgeport industrial capital of Connecticut® With the
people of Bridgeport tonight are the Secretary of the United States
Treasury - Henry Morgenthau, Jr®, - and the Commander-in-Chief of the
United States fleet and Chief of Naval Operations — Admiral Ernest J0
King, U®S®N®
MOBGENTHA.U
This is Henry Morgenthau, Jr® — and the thanks of the Treasury Department
to the Gulf Oil Companies for making this broadcast possible® I want to
tell you why w e ’re in Bridgeport tonight0
Here, in this typical American city, Americans have done and are doing
the job which Hitler thought was impossible® His mistake means his
defeat® To the enemy, our job looked too big® Our Nation looked to
softo As its(answer) Bridgeport has delivered a mighty share toward the
Nation’s huge production goals®
In Bridgeport, Americans of every religion, and of thirty-five different
nationalities are united®
And now has come a flash of news that yo.11 result in even more action on
this and e v e r y other home-front.'war-front® For now, Bridgeport knows, as
the whole world knows that the Japs have humiliated, starved, tortured
and murdered — horribly murdered -— hundreds upon hundreds of gallant
American soldierso
The city of Bridgeport is a war hero0 She’s got the campaign ribbons to
prove it — • thirty—two army—navy ”E” flags, flying proudly over thirty—
two Bridgeport war plants® Those pennants took a lot of winning —
they’re not easy to geto Yihen an nEn flag goes up, it means that the
plant over which it flies is meeting a tough production schedule, and
that can only happen when labor and management know what they are fight
ing for — and how to fight for it hand in hand - side by side®
That’s Bridgeport, Connecticut, U®S®A®
40-53
—
2
—
VOICES
Bridgeport is a city of rolled-up sleeves and overalls — working sidee
by side with bandanas and slacks«, C»I»0» and A»FoOf Lo -— open shop and
closed shop — and most of all — no strikes» Bridgeport is a city alive
with people — people from the forty-eight states — and from France and
Poland, Greece and Turkey, Britain and Russia — and most of all — no
master race» Bridgeport is a city of soldiers and sailors — of WAVES
and WACS and machinists» Catholic, Protestant, Jew — Yankee and imigrant
white and negro» And all of them — Americans» Yes — that's Bridgeport
heartbeat of America» Two hundred thousand strong» Honest I Fearless¿
Defiant I And, above all, united^ Labor and management — soldier and
worker — native born — foreign born« United- for one cause — for one
purpose — for one dream — Victory!
JJCRGMTHAU
Victory I Bridgeport was heading toward victory as far back as 1939, with
one plant already working night and day supplying shell-casings to help
save London from the blitz» Civic, labor and management leaders knew that
war was coming our way -— and they began to prepare» One of those leaders
was Mayor Jasper McLevy0
IJSLEVY
Mr0 Secretary, we knew t|ko things s That the Nazis were going to get us
into the war sooner or later, and that Bridgeport would be called upon
to play an important part» We didn't relish the idea that our city might
turn in the kind of record it achieved in the first World War0 At that
time, newly— rich workers spent their time and money buying silk shirts
and champagne» There were one hundred strikes in a single war year»
That wasn't for us this time» But, if ¡Je were going to escape it we had
to act fasti
MORGEMTHAU
Just what did you do?
MCLEVY
The first thing we had to do was to organize our enthusiasm, our abilities
and our planso We had to establish unity of purpose» We organized a
committee under the title "I Am An American" and fired our opening gun on
July 4, 194-0, with an "I Am An American" parade» Eight thousand people,
representing thirty-five nationalities, marched under one flag ■
— the
American fLago This parade marked the start of a great record of
cooperation for the war effort — cooperation of labor and management -—
cooperation that meant War Bond sales0 The "I Am An American" spirit has
made itself felt in every phase of Bridgeport's war activity» And, since
that day in 1939, we haven't let up on any of the jobs we tackled«.
- 3SPRAGUE
Mr* Secretary, I am an American. Dr. Charles Sprague. I am what a lot
of people call a yankep, % family has lived in these parts since 1628
and lid like to tell you something. Only three nights ago in this very
auditorium, 1,000 of Bridgeport’s foreign born population became American
citizens. Part of the UI Am An American” Committee’s job is to welcome
the foreign born of our population and to see that they get to become
good Americans as fast as possible. WE THE PEOPLE of Bridgeport take
pride in being Americans — but we realize that all of our ancestors came
to this country from overseas
to start a new life. We were fortunate
to have been born here. But because these new citizens chose to come to
America to live, to work, and some to fight and die — maybe they know
more about being good Americans than some of us do. Here, Mr,, Morgenthau,
are some of these people whom we are now proud to call fellow Americans.
SINGER
% name is Bessie Singer, I was born in Russia. Three nights ago, I be
came an American citizen., I have four children. One bey is overseas in
the American Army* One daughter works at a war plant. Believe me I ’m
proud to be an American citizen.
HORNYAK
I am John Hornyak from Hungary. I work on airplane engines at the
Aluminum Company of America. One of my boys is in the U, S. Cadet Corps.
When he is old enough, he will fly the planes I help to make. _We Hornyaks
would give our lives for America
that’s how much we like it.
MELECINSKY
Ann Melecinsky is my name and I come from Czechoslovakia., I have one
girl in the WAVES, one boy in the Army and one boy in the Navy. I work
at General Electric. When I was a little girl I lived in Europe.
I used to pray ’’Please God make me grow big so I can go to America.”
I put that, feeling in my children's hearts and they feel the same.
I was happy as a Slovak but I consider it an honor to be an American.
FROZEN
%■ name is Ernst Frozen. I come from Hamburg, Germany. I had a home
there. I worked in a bank, One day I was arrested. I was put into
a concentration camp for three months because I was a Jew,, Finally
I was given twenty-four hours to leave Germany. What does it mean to
me to be an American citizen? It means I can work as a machinist* As
a free man, It means I can walk the streets of Bridgeport with my head
high without anyone caring whether I am Jewish or not, I know the value
of freedom. That is • why I consider it a privilege to be able to live
in the United States.
- 4 -
SPRAGUE
Mr. Morgenthau, these people you have just heard are only a small handful
of the new citizens of Bridgeport. More than five thousand have answered
to the spirit behind that first "I Am An American,, parade. These people
are truly united — - they work for America because they are proud to live
in America -— and their sons are ready to die for America.
MORGENTHAU
We know they're good Americans, Dr, Sprague. Our team needs them — every
one of them — and will continue to need people like them through the long
and hard struggle that lies ahead. Mayor McLevy, the spirit of your city
of Bridgeport not only makes Americans but it also makes Americans give
everything they've got for their Nation,
MCLEVY
Oh, it's spirit, all right, Secretary Morgenthau. But it takes plenty of
good, old-fashioned hard work, too. Hard work on the part of the people
of Bridgeport — and their leaders, We just happen to be lucky in that
department. We have some mighty fine men — - especially among our indus
trial and labor leaders. I'd like to have you meet one of them here, as
WE THE PEOPLE'S next guest. Mr, Herman Steinkraus, president of the
Bridgeport Brass Company, the man who has done more than anyone else to
get labor and management in Bridgeport off on the right foot.
STEINKRAUS
Mr, Secretary, I had an experience in the last war, which was common to
many workers and managers here in Bridgeport, During the big push in
France we were so short of ammunition we used what we captured from the
Germans, I saw my buddies killed for lack of it. When this war broke
out I determined to help our boys get enough and on time* I told our
employees about my experience and asked for their suggestions<, Then when
Donald Nelson proposed that labor and management committees be set up in
war plants to swap ideas and stimulate production, he didn't have to urge
us,
MORGENTHAU
Mr, Steinkraus, this labor and management plan is very interesting to me,
because I have found that wherever labor and management get along, pro
duction is high and Bond sales take care of themselves, I've seen it
happen in dozens .of places — in Portland, Oregon — in Cedar Rapids,
Iowa
in Buffalo, New York and only last week, I saw it in Cincinnati,
Ohio. Out there, I saw one plant that had increased its production seven
hundred percent -r— and Mr. Steinkraus, Bond sales have kept right in step.
- 5 ~
STEINKRAUS
Yes, I know that and another thing, Mr* Secretary, with labor and manage
ment working together, there haven't been any work stoppages in Bridgeport
since the war, though our industrial population has tripled since 1939.
Management tries to be fair, and our union leaders are first-class Americans
honest and reasonable and only interested in winning the war» We've got
real team work between labor, management and our local town officials. Our
company heads don't consider whether a man is a union or a non-union man.
He is simply a General Electric, a Gulf Oil, a Bullard, or Bridgeport Brass
Employee. As a matter of fact, organized and unorganized labor is divided
up here just about half and half. But the results are what count. And
I hope you'll pardon my pride, Mr. Secretary, when I tell you that our
company is one of the few, I think it is four, companies in America to win
the Army-Navy "E" five times. In order to do that, we not only had to keep
production up, but had to maintain the right kind of labor-management rela
tionship, increase production efficiency, maintain quality and generally
keep doing a bigger job and a better job all the time. And that's the job
you'll find all of Bridgeport doing — * making trainloads of fighting equip
ment for America's fighting sons.
MORGENTHAU
Thank you, Mr. Steinkraus.
VOICES
Machine guns — cartridges — rifles — radar — bazookas — quinine —
airplanes — flying suits — sulfanilimide — instrument panels — machine
tools — anti-aircraft guns — lifeboats — cylinder heads — pressure
gauges.
MORGENTHAU
All kinds of things — being made by all kinds of people. Not only here
in Bridgeport, but all-over the country. Men and women and children —
working — fighting — for America. Out in Oregon, I saw grandmothers
working in a shipyard.
HULTON
I'm a grandmother, my name is Elizabeth Hulton, Mr, Morgenthau. I first
went to work for Remington Arms back in 1894* This is my third war making
bullets for American soldiers.
MORGENTHAU
Yours is a splendid record, Mrs. Hulton.
- 6 HULTON
% y , I was only eighteen during the Spanish American War — and used to go
to work in a Gibson Girl dres*. There's been a lot of changes in both
bullets and dresses since that time. But we're still fighting for the
same things.
MOEGENTHAU
Those things are always worth fighting for, Mrs. Hulton.
MADDEN
This is my first war, Mr, Morgenthau. % name is Lois Madden —
skate, roller skate, and row a boat to help win the war.
and I ice-
MORGENTHAU
How does ice-skating help in war production, Lois?
MADDEN
H ,N
Well, I'm in the research laboratory of Remington Arms. I have to retrieve
wads fired from shot guns. When they're fired over frozen lakes, I skate
after them. When the lake isn't frozen, I row. I bring them back to
scientists who study them. Believe me, the only pills to cure the Germans
and Japs are American bullets — and the larger doses, the better.
MORGENTHAU
Right you are, Lois.
do you work?
Now here is sixteen year old Tony Ailyo.
Tony, where
TONI
At Bridgeport Brass. I work there in the morning, go to school in the
afternoon, and do my homework at night. I can only play on Saturday
afternoons.
MORGENTHAU
Your mother must be very proud of you, Tony.
TONY
She says I learn things quick.
- 7 -
MORGENTHAU
You're pretty grown up for sixteen.
Do you have a girl?
TONY
Well —
yeah I got one on the string,
MORGENTHAU
Just one?
TONY
One's enough, Mr, Morgenthau.
MORGENTHAU
You have learned early. Now, next at WE THE PEOPLE'S niicrophone is
Mrs, Maxine Richeson. What's your war job, Mrs. Richesbn?
RICHESON
It's quite different from the job I had in the last war, I was in
the famous Ziegfield Follies of 1918, with Will Rogers and Eddie Cantor.
In this war, I'm in the factory of Manning, Maxwell, and Moore.
I test airplane instruments. I experimented and found a way to speed
up the test. My boss was certainly surprised that an ex-Follies girl
could do anything but dance. At first my husband laughed at the
thought of me in a factory. But he ate his words. I'm thrilled to
be a part of Bridgeport's production army. As P. T. Barnum, Bridgeport's
most famous citizen would say — ^ it's "The Greatest Show on Earth."
~ 8 -
M0RGSNTHA.U
It certainly is<> Nov/ here is a Bridgeport father who has a very personal
score to settle with the Axis« Be ip Mr© Ray Space©
SPACE
Ity second oldest boy, Arthur, was 18 when he went right into the Army
Air Corps and became a gunner© In January, 194-1* he vías sent to the
Philippines® Then came December 7th© Three days after Christmas, I
got a telegram© The Japs if(¿ killed my boy Arthur when they bombed
Nichols Field© Arthur wap; W
'first Bridgeport bojr to be killed in this
war© Then his brother, Donalds, went into the Air Corps too0 I thank
God that I am strong enough to work in a war plant - The Aluminum Company
of America, and that cVery pound of our aluminum goes right into the war0
Some of it may be in the very plane my boy, Douglas, will fly in0 He
will be an aerial gunner, like Arthur was© Our family is buying Bonds,
and doing all we can, like other Bridgeport families, to avenge the
death of our boys© Here is Arthur’s citation, Mr0 Morgenthau© Maybe
you would like to read part of it©
MORGSNTHAU
"He was a soldier, and he knew a soldier’s duty© Tie who pay him honor,
and revere his memory, in solemn prayer rededicate ourselves to a
complete fulfillment of the task for which he so gallantly placed his
life upon the altar of man’s freedom©"
An American boy is killed in the Philippines© Increased production in
his home town shouts our Nation’s anger© A reply, the force of which
has already been felt by the Japanese© An answer* measured in tons of
fighting equipment© Cities like Bridgeport contribute much of the
force
but it is a long way from here to the firing-line — and it
is vitally important that those people who make the weapons of war
know just how they are being used — ho?; effective they are0 Here to
tell that story as Yi/E THE PEOPLE’S next guest is iry friend, Colonel
Thomas D 0 Campbell of the Air Service Command ?;hom I last, saw in
Algierso
- 9 -
CAMPBELL
Thank you, Mr0 Secretary, I have just returned from an eleven-months*
tour of many of our fitting fronts,, % job was to report to General Frank
on the maintenance and salvage of all air force equipment» In Algiers,
General Elsenhower directed me to make a report on all army equipment»
MQRGENTHAU
I know the war workers of Bridgeport would like to hear your conclusions,
Colonelo
CAMPBELL
The equipment our war-workers make is the best in the world, Mr® Secretary®
For example, our two and a half ton six by six truck® Six by six means
that it lias power in each of its six wheels0 It can go almost anywhere®
Our boys get a great kick out of the Bazooka and the hand grenade they
fire off the end of the Springfield rifle®
MORDENTHAU
Yes, I know, for on my own trip to Italy X saw both of them in action
when I was at the front with General Clark®
CAMPBELL
Yes, the Germans call the Bazooka the "French. 75 a man can hold in his
hands and shoot®M And I*ve seen a. fellow fire a grenade off his
Springfield and hit a German machine-gun nest at 900 feeto But the most
startling equipment I saw were the detection devices® A fighter pilot
in England told me that, thanks to them, night-fighting had now been made
almost as certain as fighting by day®
MORDENTHAU
Did you see any of our equipment going to Russia, Colonel Campbell?
CAMPBELL
Yes sir, I saw it coming through the Persian Gulfo On the cement pavement
of Iran the temperature was 180 degrees, and no tires in the world* could
take it as ours do® I*ve seen hundreds of trucks on the road to Russia
and many-of the over 2,000 American planes we have sent them® You war
workers in Bridgeport can feel a personal pride in having helped make
that equipment, for these trucks and planes were important factors in
the defense of Stalingrad and the Caucasus®
-
10
-
morgenthau
Colonel Campbell, a few months ago I went to Sicily and one of our generals
took me to a giant factory where enemy equipment was being overhauled for
our own use© Later,in Cairo, I saw American engines which had seen hard
fighting service being overhauled by native help«
CAMPBELL
Mr«, Secretary, thousands of engines are being sent back to the United States
for repair«, Everything,even small lengths of; cable,,are salvaged© I saw
planes that returned from the raid on the Rumanian oil fields with holes
in their wings as big as a man,, But every salvageable part was usedo To
show you to what lengths our men go to salvage equipment, let me tell you
about one soldier,, A P—38 had crashed in then German—held territory in
Africa, near the little French town of Torquez© Before the town was re
taken, the Germans mined the path leading up to the P-38© Tfhen this
American soldier approached the plane to salvage it, he was killed by a
mine0 I reached Torquez the next day and was asked to officiate at his
funeral ■
— one American among hundreds of Frenchmen,, They gave that'
American soldier a military funeral with all possible honors, for as they
told me, he died in an effort to help make our American equipment last
for all the Allies as long as possible0
MORGENTHAU
Thank you, Colonel Campbell„
Here tonight, we have met the people of Bridgeport© People united in
thought, action, and spirit0 They have translated that unity into the
tools of war — by working in harmony — by living in harmony — by
pooling their skills and their money for one purpose — to "Back The Attack'!®
Leaders of management like Mr© Steinkraus, whom we met earlier, work closely
with leaders of' labor like the two men here with us now0
0 1BRIEN
My name is O'Brien, Ed O ’Brien, and I inspect shell— casings over at
Bridgeport Brass© But I ’ve got another job — I ’m serving as head of the
Bridgeport CoIo0o There’s something I ’d like to get off my chest here
tonight© It makes me a little sick to pick up newspapers and read stories
about how management is supposed to be fighting labor, and labor is supposed
to be fighting management, and nobody can get along© T/ell, Tire*re here to'
prove they can get alongo H e ’re doing it here in Bridgeport and w e ’re going
to keep on doing it© And I know I can also speak for Peter Benard, Chief
of the A 0F0 of L here in Bridgeport© Pete has five children — one son
with the air force in England — and five grandchildren© Right, Pete?
-
11
BENARD
Right you are, Ed 0 In our city, our unions don’t believe in fighting
■with each other — or with unorganized labor, either* W e ’re both
working for the fellow that’s parking for a living* I speak for the
unions as well as management when I say that our responsibility as
Americans has united us to win the war and keep the peace*
MORGENTHAU
Thank you Mr* O ’Brien and Mr© Benard© Labor, management and the armed
forces fighting side by side will win the v\rar — the Bridgeport kind of
labor and management cooperation, coupled with the American fighting
forces under their able and distinguished leaders© We take you no?;
to Washington ?;here you ■will, hear from Admiral Ernest J© King, USN,
0ommander-in-Ohief of the United States fleet and Chief of Naval
Operations, speaking from his flagship, the UoSoSo Dauntless© Come in
Admiral King 0
KING
What ?;e accomplish during this year of attack ?/ill directly affect
the length of the ?;ar, and the price in American lives to be paid for
final victory© The more than 14,000 ships and 27,000 planes ?/hich no?;
comprise our naval forces that are required to operate in many oceans,
against determined and resourceful enemies0 Most of the men who man them
have recently come from civilian life, but the job that they are doing
today is magnificent* They have given up many privileges* They kno?;
that discipline and unquestioned obedience are' necessary in military
operations© Men ?;ho have seen action kno?; best the importance of these
principles* To some people at home the war may seem remote© It may be
both easy and pleasant to dwell on the progress, and the victories of
the past year, and to think that the ?;ar is almost won 0 So often our
memories are short© Even no?; it may be difficult for some to remember
ho?; quickly the eneny overran the Philippines, and most of the islands
of the Central and South Pacific in the early months of the ?;ar0 No?; we
are faced with the task of dispossessing him from these areas ?;hich he
so quickly gained and which ?;e need before our attack on his homeland
can be accentuated© We have started this uphill march; ?;e have already
put the enemy on the defensive© As we progress, his lines of communications
m i l be shortened; the thoroughness of his preparations for defense will
improve, ?;hich will increase the difficulty of attaining victory* There
can be little ?;onder that the fighting man looks with some?;hat incredulous
eyes upon these citizens at home ?;ho think the ?;ar is won© Is it ?;on ?;hen
there is a Jap sniper in the next tree, and when that Jap is. still over
2,000 miles from Tokio? Our fighting men want this war over 0 They ?;ant
to come home, but not until a victory is gained* To speed that day, the
men of the Navy, Marine Corps, and Coast Guard invest over twenty million
dollars a month in the United States War Bonds, so that they are among
the greatest boosters for the War Loan Drive© This year, as never before,
-
12
wc need our full fighting strengthi A vast landing craft construction
program has begun» It rd.ll cost more than five billion dollars» One
out of every four dollars the navy Td.ll expend during the next eleven
months m i l go into that program«, Upon its completion depends to a
groat measure the success of the forthcoming operation» War Bonds m i l
provide the means to build these landing craft*
To every American
citizen and wage earner, I make the appeal to buy War Bonds« Let your
dollars fight for victory and%for freedom for America — buy War Bonds«
MORGENTHAU
Now here is a war worker from Bridgeport who knows the real costs of
war«
YfORKER
I had a son on Bataan* You know what’s happened to our boys there0
I don’t have to tell you« Not every war worker is going through what
I have gone through these last 4-8 hours« But they are w or king hard —
just as hard as I am« We want this war over« And the only way to do it
is to put everything we have got into it«
MORGENTHAU
"Everything w e ’ve got"« Every nickel we can possibly Save» Is that too
much to ask when wc hear from the lips of Americans such things as this?
VOICE
We were made to sit in the boiling sun all day"without cover0 We had
very little water© Our thirst was intense0 Many of us went crazy,
several died, three Filipino and three American soldiers were buried
while still alive«, One American officer was beheadedo And two others
were shot after they had dangled for two days in the broiling sun with
their arms tied behind them0
Bodies of American and Filipino soldiers Tirho had been killed in the last
hours of battle on Bataan we re crushed and smashed by Japanese trucks
which ran over them deliberately« The sick, the starving and the wounded
were compelled to march mile after mile for days without food or water*
They were herded into enclosures which reeked of the stench of the living
and the dead — men who died from starvation, thirst and disease«
MORGSNTHAU
News like that makes our blood boil! But, the flash of our immediate
anger blinds us to an important fact* that this latest outrage of the
Jap nicnsteis is not so unusual after all 3 that it is but part of a proven
pattern of Axis atrocities; a scheme forged in the hell—fires of hatred—
a program of bestial cruelty — deliberate, ever-increasing in the
intensity of its horror! Yes, this is but the newest link in the chain
of evidence which will anchor in Hell the souls of Japanese and German
leaders for eternity!
- 13 ~
Remember the rape of Lidice« Remember the fifty thousand Russians
hanged by the Germans at Gomelo Remember Kharkov — and Smolensk where
the population were tortured and murdered0
Tomorrow, and for as many tomorrows as there shall be in this war, we
shall continue to hear of further murderous crimes committed by the Axis,,
And that is why Tie must limit those tomorrows — end them, once and for
all, with quick and complete Victoiy0
The Japanese and the Germans hope, by their frightfulness to scare us
into quittingo
Well, our answer to that is the job being done day in and day out by
Mr® and. Mr s0 America — r you people -— yes, the people of cities like
Brid gep ort, C onne ct ic ut , U.SoAo
ANNOUNCER
This is Milo Boulton again saying thank you to the people of Bridgeport,
Connecticut, and to the Secretary of the Treasury, Henry Morgenthau, Jr0,
for being with us on WE THE PEOPLE tonight® The Gulf Oil Companies and
your neighborhood Good Gulf dealer have been proud to have made this
special broadcast of WE THE PEOPLE possible® Next Sunday the GulF Oil
Companies will bring you another program of WE THE PEOPLE; with Oscar
Bradley and his orchestra and another grand group of Americans bringing
you the kind of experiences you hear only when YiS THE PEOPLE speak«.
0O 0
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 1 . 1944.
Fress Serric*
. Lfù '
The Secretary of the Treasury announced last evening that the tenders for
$1,000,000,000, or thereabouts, of 91~day Treasury bills to be dated JWbruary 3
and to sature May A, 1944, which were offered on January 28, were opened at the
Federal Reserve Banks on January 31»
The details of this issue are as follows*
Total applied for - $2,459#243#000
Total accepted
- 1,003,742,000
Average price
- 99.906
^
(includes $71,527,000 entered on a fixedprice basis at 99.905 and accepted in full)
Equivalent rate of discount approx.
0.374# per
Range of accepted competitive bids*
m «K
Low
- 99.920 Equivalent rate of discount approx. 0.316# per annua
- 99.905
"
*
»
#
*
0.376# »
11
(23 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Total
Accepted
Total
Applied for
t 123,248,000
1,485,975,000
77,696,000
75,408,000
59,307,000
7,675,000
364,009,000
48 ,829,000
65,730,000
37,283,000
19,133,000
94 ,950,000
12,459,243,000
7 7 ,210,000
494,948,000
32 ,805,000
52,674,000
35,976,000
7 ,521,000
126 ,253,000
24,343,000
65 ,711,0 0 0
29,352,000
12,819,000
44.130.000
»,003,742,000
$
TREASURY DEPARTMENT
Washington
F O R RELEASE, MORNING- NEWSPAPERS,
Tuesday, F e b r u a r y 1, 1944.
1-31-44
Press Service
No. 40-54
The S e c r e t a r y of t he T r e a s u r y a n n o u n c e d last
the t e n d e r s f o r $1 , 0 0 0 , 0 0 0 , 0 0 0 ,
or t h e r e abouts,
evening that
of 9 1 - d a y T r e a s u r y
b i lls to be dated F e b r u a r y 3 a n d to m a t u r e M a y 4,
1944,
which
w e r e o f f e r e d on J a n u a r y 28, w e r e o p e n e d at t h e F e d e r a l R e s e r v e
Banks
on J a n u a r y 31*
The details
of t h i s
issue a r e as follows;
Total a p p l i e d f o r - $ 2 , 4 5 9 , 2 4 3 , 0 0 0
Total a c c e p t e d
1,003,742,000
(includes $ 7 1 , 5 2 7 , 0 0 0
entered on a f i x e d - p r i c e basis at 9 9 .905 a n d a c c e p t e d in
full)
Average price
Range
- 9 9 . 9 0 6 E q u i v a l e n t r a t e of di s c o u n t a p p r o x
0,374$ per annum
of a c c e p t e d c o m p e t i t i v e bids;
High
low
- 99.920
0.316$
- 99,905
0.376$
E q u i v a l e n t r a t e of dis c o u n t a p p r o x
per a n n u m
E q u i v a l e n t r a t e of dis c o u n t a p p r o x
per annum
(23 p e r c e n t of the a m ount b i d for at t h e lo w p r i c e was a c c e pted)
Federal Reserve
District
Total
A p p l i e d for
T o tal
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas C i t y
D a llas
San F r a n c i s c o
$ 123,248,000
1,485,975,000
77.696.000
75.408.000
59.307.000
7,675,000
364,009,000
48.829.000
65.730.000
37.283.000
19.133.000
94.950.000
$
TOTAL
$2,459,243,000
77,210,000
494.948.000
32.805.000
52.674.000
35.976.000
7 , 521,000
126.253.000
24.343.000
65.711.000
29.352.000
12.819.000
44,130,000
$1,003,742,000
TRSâ SÜET
department
Washington
Press Service
FOR IMMEDIATE RELEASE,
Tuesday> February It 1944
The Secretary of the Treasury today announced the final subscription
and allotment figures with respect to the current offering of 0.90 percent
Treasury Notes of Series 0-1945*
Subscriptions and allotments were divided among the several Federal
Reserve Districts and the Treasury as follows;
Federal Reserve
District_______
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Treasury
TOTAL
Total Subscriptions
Received and Allotted
$ 134,699,000
1,029,319,000
56 ,431,000
91,216,000
37.568.000
.
68 870.000
294.558.000
72.590.000
53.487.000
65.770.000
.
46 804.000
174.615.000
520.000
$2,126,447,000
TREASURY DEPARTMENT
Washington
Press Service
No. 4 0 -55
F O R I M M E D I A T E RELEASE,
Tuesday, F e b r u a r y 1, 194 4
The S e c r e t a r y of the T r e a s u r y t o d a y a n n o u n c e d
final
the
s u b s c r i p t i o n a n d a l l o t m e n t fi g u r e s w i t h re s p e c t to
the current o f f e r i n g of 0.90 p e r c e n t T r e a s u r y N o t e s o f
Series D-1945.
S u b s c r i p t i o n s a n d a l l o t m e n t s w e r e d i v i d e d a m o n g the
several
Federal R e s e r v e D i s t r i c t ^ a n d
the T r e a s u r y as fol
lows:
T o tal S u b s c r i p t i o n s
Received and Allotted
Federal Reserve
Distri ct
$
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
C h i cago
St. Louis
Minneapolis
K a nsas C i t y
Dallas
S an
Francisco
Treasury
134,699,000
1,029,319,000
56.431.000
91.216.000
37.568.000
68.870.000
294.558.000
72.590.000
53.487.000
65.770.000
46.804.000
174.615.000
5 2 0 ,000
$2,126,447,000
-oOo
- 3 -
Note*
l/
Figures are rounded and will not necessarily add to totals.
The estimates are preliminary and tentative pending the drafting of the
final hill and are intended to reflect the net improvement in the Budget
position of the United States resulting from the revenue measures con
tained in the Bill* Therefore, the portion of the Bill which increases
Federal receipts and expenditures to the same extent hy terminating
certain governmental excise tax exemptions (Title III, Section 307 of
the Bill) does not increase the present estimate of the net yield of
the Bill over present law*
2/ Estimated nonrecurring refunds of $75*0 millions resulting from the Bill
~
as agreed upon in Conference, of $¿¿7*5 millions as passed hy the Senate,
and of $7 millions as passed hy the House, are not shown,
3 / Collections for credit to trust funds are not included*
"§/ These estimates are after allowances for drawbacks of $2JU6 millions
“* under the Bill as passed hy the Senate, and agreed upon in Conference, of
$19.7 millions as passed hy the House of Representatives, and of $lU*8
millions under present law*
5/ Excludes nonrecurring collection of tax on floor stocks under the Bill in
the amount of $63*0 millions*
6 / The tax on luggage under the Bill has been changed from a manufacturers’
excise to a retailers’ excise tax, Estimated nonrecurring refunds of
$1,1 millions resulting from the Bill as passed hy the Senate are
excluded,
7 / public law 171, Section 3, froze the tax rates of the Federal Insurance
Contributions Act at one percent each on employers and employees for two
months of the calendar year
reducing tax liabilities by an esti~
mated $219*5 millions. The freezing of the rates for the entire
calendar year reduces tax liabilities by an estimated $1 ,3 ^0*0 millions*
8/ The increased cost to the Government from price increases under the Bill
“
as passed by the House as a result of changes adopted in the renegotiation /
of war contracts is not included* Under the Bill as passed by the Senate,
it is estimated that the Federal Government would lose over $200 millions
before taxes on the business of corporations with fiscal years ending
after June 30, 19^3, as a result of proposed renegotiation treatment of
certain durable machine tools or equipment with a useful life of over
J .. ten years. This is not reflected in the above estimates at the level of
income of the calendar year 1 9 ^ *
9 / The increase of postal revenues, estimated at $183»8 millions under the
”
Bill as passed by the House of Representatives and at $110.0 millions as
passed by the Senate and agreed upon in Conference, will add to any
surplus or reduce any deficit in postal operations that may exist, Only
the net surplus, if any, from postal operations will be reflected in
miscellaneous receipts. For the purpose of the present estimate it is
assumed that there will be a postal surplus in the calendar year
under present law,
10/ Excludes the effect of freezing the tax rates of the Federal Insurance
Contributions Act, since these funds would have been automatically
appropriated to the Federal old-age and survivors insurance trust fund*
~ 2 Manufacturers1 excise taxes:
Electric light bulbs .. :
Luggage 6/
_ All other
Total manufacturers’ excise taxes
Retailers’ excise taxes:
Jewelry, etc*
Furs
Toilet preparations
Luggage 6/, handbags, wallets, etc.
Total retailers’ excise taxes
Miscellaneous taxes:
Telephone, telegraph, radio and
cable facilities, leased wires, etc.
Telephone bill
Transportation of persons
General admissions
Cabarets, etc.
Club dues and initiation fees
Bowling alleys and billiard and pool
tables
Pari-mutuel wagering
A 11 other 3/
Total miscellaneous taxes
Total miscellaneous internal
revenue
7.5
4.1
—
-
3.4
-
2.5
92.5
38.7
—
-
3.9
21.6
15.9
9.2
207,3
-
50.6
44.0
32.I
2,
2.5
-
3.8
—
9.4
5.6
1.4
'«r—
——
127.7
76.2
5.4
35.8
1.8
25.2
29.I
42.2
féf
389.9
963.9
——
—
45.8
90.6
1 ,165.8
2,5
—
42.2
(3) Employment taxes:
Federal Insurance Contributions Act 7/ - 1,120.5
All other
Total employment taxes
- 1,120.5
Total internal revenue
2.5
-
-rr„
-,ril,
...
88.7
42.2
145.8
50.3
- 1,120.5
1- ,
— n-
- 1,120.5
— .
- l,oa. 6
:355.8
Railroad unemployment insurance
contributions
—
—
-,
3.
Customs
—
—
MM»
4.
Miscellaneous receipts 8/ 9/
Total yield, general and
special accounts
Net appropriation to Federal
old-age and survivors
insurance trust fund
Not yield, general and special
accounts
110,0
4 8.8
12.8
1 ,073.9 - 1,090.4
368.6
1 ,120.5
■**
1,120.5
—
2,194.4 IQ'
30.1 10/ 368.6
Treasury Department, Division of Bpsearch and Statistics 1/31/44
Estimated change in the Budget position of the United States resulting from the
Revenue Act of 1943 (HoRo 3687) as agreed upon in Conference (January 31,
1944) compared with the Budget position under the present law and
under the Revenue Act of 1943 (H0R. 3687) as passed b y the
House of Representatives (November 24, 1943) and by
the Senate (January 21, 1944) for a full year
of operation at levels of income estimated
for the calendar year 1944 1/
(In millions of dollars)
:
Increase or decrease (— ),
:as a gro ed up on in ~C on fe re nee,over
¡Present : House
: Senate
; law
; Bill
: Bill
Total income and excess
profits taxes
(2 )
Miscellaneous internal revenue :
Capital stock, estate, and gift
taxes
—2,443 o8
2,810.1
2,810.1
’
366.3'
918.6
22^.7
—
473.1
70 02
21.9
—
565.2
329.3
23.8
305.5
ti—1
»
t-T,,
—
305.5
—
o
0
■SÏ
Tobacco taxes 3/
.9
- l60o6
- 19.0
92.6
236.7
1
Liquor taxes:
Distilled spirits (domestic
and imported)
(excise tax) 3/ i j
Fermented malt liquors 3 /
Wines (domestic and
imported) (excise tax) 3/
All other 3/
Total liquor taxes 5 ]
31.6
- 191.3
sO0
1—[
1—1
1
Int e m a l reve nue :
(1) Income and excess profits taxes:
Corporation:
Income tax
84.6
Excess profits tax
269.5
Declared value excess profits
tax
.9
Total corporation (gross)
353.2
Less postwar credit
26.9
Total corporation (net) 2/
326.3
Individual :
Net income tax
654©1
Victory tax (gross)
-1,837.9
Less postwar credit
1.776.1
Victory tax (net)
61.8
Total individual
592 o3
,-T
r,, ,
—
,-mIjpnr
4o0
.Treasury Department, Division of Research and StatisticsNote:
l/
"x3 ~~
.T«rm»-ry 31
Figures are rounded and will not necessarily add to totals.
The estimates are preliminary and tentative pending the drafting of the final bill and are intended to
reflect the net improvement in the Budget position of the United States resulting from the revenue
measures contained in the Bill. Therefore, the portion of the Bill which increases Federal receipts
and expenditures to the same extent by terminating certain governmental excise tax exemptions
(Title III, Section 307 of the Bill) does not increase the present estimate of the net yield of the
Bill over present law.
2/ Estimated nonrecurring refunds of $ 75*0 millions resulting from the Bill as agreed upon in Conferenoe,
of $267*3 millions as passed by the Senate, and of $7 millions as passed by the House, are not shown.
3/ Collections for credit to trust funds are not included.
j4/ These estimates are after allowances for drawbacks of $ 23*6 millions under the Bill as passed by th®
Senate and agreed upon in Conference, of $ 19*7 millions as passed ty the House of Representatives, and
of $14*0 millions under present law.
5/ Excludes nonrecurring collection of tax on floor stocks under the Bill in the amount of $63.0 millions«
2 / The tax on luggage under the Bill has been changed from a manufacturers' excise to a retailers' exels®
tax. Estimated nonrecurring refunds of $ 1.1 millions resulting from the Bill as passed by the Senate
are excluded.
2/ Public law 171 , Section 3 * froze the tax rates of the Federal Insurance Contributions Act at one perc«ifl
each on employers and employees for two months of the calendar year 1944« reducing tax liabilities by 1
an estimated $ 219*5 millions*
The freezing of the rates for the entire calendar year reduces tax liar
bilities by an estimated $1,340.0 millions.
8/' The increased cost to the Government from price increases under the Bill as passed by the House a4 a
result of changes adopted in the renegotiation of war contracts is not included. Under the Bill/as
passed by the Sonate, it is estimated that the Federal Government would lose over: $200 millionsZon th®
„ business of corporations with fiscal years ending after June 30 , 1943 « as a result of proposed rene
gotiation treatment of certain durable machine tools or equipment with a useful life of over ten ye&rsi
This is not reflected in the above estimates at the level of income of the calendar year 1944 .
2 / The increase of posted revenues, estimated at $183*8 millions under the Bill as passed by the House of
’Representatives and at $ 110*0 millions as passed by the Senate and agreed upon in Conference, will add
to any surplus or reduce any deficit in postal operations that may exist. Only the net surplus, if
any, from postal operations will be reflected in miscellaneous receipts* For the purpose of the
present estimate it is assumed that there will be a postal surplus in the calendar year 1944 under
present law.
10/ Excludes the effect of freezing the tax rates of the Federal Insurance Contributions Act, since these
funds would have been automatically appropriated to the Federal old-age and survivors insurance
trust fund.
Manufacturers' excise taxes:
Electric light bulbs
luggage 6/
All other
Total manufacturers' excise taxes
Retailers' excise taxes:
Jewelry, etc*
Furs
Toilet preparations
Luggage 6/, handbags, wallets, etc.
Total retailers' excise taxes
Miscellaneous taxes:
Telephone, telegraph, radio and cable facilities,
leaded wires, etc.
Telephone bill
Transportation of persons
General admissions
Cabarets, etc.
Club dues and initiation fees
Bowling alleys and billiard and pool tables
Pari-mutuel wagering
All other
Total miscellaneous taxes
Total miscellaneous interned, revenue
(3) Employment taxes:
Federal Insurance Contributions Act “
]]
. All other
Total employment taxes
Total internal revenue
7.5
4.1
-
2.5
2.5
3.4
-
2.5
2.5
92.5
44.0
32.1
38.7
-
3.9
21.6
15-9
- .. 9.»2
42.2
45.8
90.6
1 .4
12 7.7
-
3.8
-
• —
,
35*8
42.2
76.2
sacs
U
-
25.2
29.1
3H9-9
-
8877
42.2
1,165.8
-
145-8
50.3
- 1,120.5
- 1,120.5
- 1,120.5
- 1,120.5
963-9
- 1,041.6
355-8
110.0
48.8
12.8
1.073.9
- 1,090.4
368.6
1,120.5
1,120.5
CM*
—
2 . Railroad unemployment insurance contributions
3 * Customs
4 * Miscellaneous receipts 8/
Toted yield, general and special accounts
Net appropriation to Federal old-age and survivors
insurance trust fund
Net yield, general and specied accounts
2,194.41c/
30.1 10/
368.6
A
1
T
v
Estimated chaiige in the ftudget position of the United States resulting from the Revenue Act of 1943/
(H.R. 3687 ) 88 agreed upon in Conference (January 31 » 1944 ) compared with the Budget position
under the present lew and under the Revenue Act of 1943 (H.R. 3687) as passed by the
House of Representatives (November 2 4 » 1943 ) and by the Senate (January 21 , 1944 )
for a full year of operation at levels of income estimated
for the calendar year 1944 l/
(in millions of dollars)
:
:
:
;
1*
Internal revenue;
(l) Income and excess profits taxes:
Corporation:
Income tax
Excess profits tax
Declared value excess profits tax
Total corporation (gross)
Less postwar credit
Total corporation (net) 2(
Individual:
Net income tax
Victory tax (gross)
Less postwar credit
Victory tax (net)
Total individual
Total income and excess profits taxes
Increase or decrease (-),
«greed upon in Conference, over
Present
:
House
;
Senate
law
;
Bill
*
Bill
m
84.6
269.5
-
W O
1355$
7
Ï657b
31.6
92.6
236.7
26.9
"32573
634*1
- 1,837.9
- 2,443-8
2,810.1
1 . 776.1
trg
2,810:1
592-3
1653
918.6
224.7
305-5
(2 ) Miscellaneous internal revenue:
Capital stock, estate, and gift taxes
Liquor taxes;
Distilled spirits (domestic and imported)
(excise tax) 3/ 4 /
Fermented malt liquors 3/
Wines (domestic and imported) (excise tax) 3/
All other 3/
Total liquor taxes jj/
Tobacco taxes 3/
itamp taxes
473-1
-
4-0 .
-
4/0
70.2
21.9
565/2
-
FOR IlMDIiffiE RELEASE,
February^. 1944.
The Bureau of Customs 'announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas
for the 12 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
follows;
l
*
Authorized for entry
Country of Production
: Qiaota Quantity $______for consumption_____
____ ______________________: (Pounds) 17 ? As of (Date) i (Pounds)
Signatory Countries*
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
EL Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries*
2j
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Jan, 22, 1944
N
H
N
n
n
h
ti
it
H
H
If
H
II
«
320,330,522
177,173,686
2,550,278
2,717,065
4,546,153
12,807,887
12,471,865
18,719,889
5,410,472
1,544,219
20,233,051
7 a , 232
900,895
14,044,964
2, 278,399
Quotas as established by action of the Inter-American Coffee Board on
January 12, 1944.
—oQom
T R E A S T O DEPARTMENT
Vashingt on
FOR IMMEDIATE RBIEASE»
Wedneaday. February 2, X944»
Press Service
No, 40-56
The Bureau of Customs announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas
for the 12 months commencing October 1* 1043, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
follows:
Country of Production
:
:
Authorized for entry
: Quota Quantity t
„. for consumption____
: (pounds) 1/ : As of (Date) : (Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries:
]J
1,353»183,480
458,336,340
29,100,720
11,640,288
17,418,104
21*825,540
87,302,160
77,844,426
40,013,490
2,909,675
69j114,210
28,373,202
3,637,590
61,111,512
51,653,778
Jan. 22, 1944
ii
it
u
ii
»
»»
it
ii
ii
ir
ii
V
it
*
320,330,522
177,173,686
2,550,278
2,717,065
4,546,153
12,807,887
12,471,865
18,719,889
5,410,472
1,544,219
20,233,051
721,232
- 900,895
14,044,964
2,278,399
Quotas as established by action of the Inter-American Coffee Board on
January 12, 1944.
-o0o<-
- 3 for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or lose.
Treasury Department Circular No. 418, as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
-
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 from any 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’Bank
in cash or other immediately available funds on
February 10, 1944______ ,
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt.from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
l
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 11? (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration as capital assets., Accordingly, the
owner of Treasury bills (o^her than life insurance comoanies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday. February 4* 1944
m
The Secretary of the Treasury, by this public notice, invites tenders
for $ 1,000,000,000 , or thereabouts, of
9l -day Treasury bills, to be issued
.W
.....
. ~ w
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided, . The bills of this series will be dated
February 10, 1944
, and will
. .—
mature
.3 when the face amount, will be payable without
..19.44
Î& k
interest.
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000,. $100,000, $500,OCX), and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p. m . , Eastern War time, Monday, February 7, 1914
Tenders will not be received at' the Treasury Department, Washington.
Each tender
must be for an even multiple of $1,000, and the price offered must.be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on the 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 from incorporated banks and
trust companies and. from responsible and recognized dealers in investment securi
ties.
Tenders from others must be apcomoanied by payment of 2 percent of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty pf payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S PAPERS,
Friday, F e b r u a r y 4, 1944.
The S e c r e t a r y of the Treasury, by this p u b l i c notice,
invites tenders for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s •of 91day. T r e a s u r y bills,, to be i s s u e d on a d i s c o u n t b a sis u n d e r
¡competitive a nd 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 provided.
The bills o f this .series w i f i be d a t e d F e b r u a r y 10, 1944,
a n d will m a t u r e M a y a l, 1944* w h e n the fade a m o u n t will be
p a y a b l e w i t h o u t interest. ¡They will be issu e d in b e a r e r
f o r m only, a n d in d e n o m i n a t i o n s o f $1,000, $5,000, $10,000,
$100,000, $500,000, a n d $ 1 , 0 0 0 , 0 0 0 ( m a t u r i t y v a l u e )•
T e n d e r s will be r e c e i v e d a t Federal R e s erve Banks and
B r a n c h e s up to the closing hour, two o fc l o c k p. m . , E a s t e r n
War ' T i m e , Monday, F e b r u a r y 7, 1944..
T e n d e r s w ill n o t be
r e c e i v e d at the: T r e a s u r y D epartment, \¥ashington.
Each, t e n
der m u s t be for a n even m u l t i p l e of $1,000, a n d the price
o f f e r e d m u s t be e x p r e s s e d on the b a s i s of 100,- w i t h n ot m o r e
than three decimals, e. g., 99.925.
Fractions m a y n o t be
used.
It is u r g e d that tenders be m a d e on the p r i n t e d forms
a n d f o r w a r d e d in the special e n v e l o p e s w h i c h will be s up
p l i e d b y Federal Reserve Banks or Branches, on a p p l i c a t i o n
therefor.
T e n ders will be r e c e i v e d w i t h o u t d e p o s i t from i n c o r p o r
a t e d b a n k s a n d trust companies, a n d f r o m r e s p o n s i b l e and
r e c o g n i z e d dealers in i n v e s t m e n t securities.
Tenders f r o m
o t hers must be a c c o m p a n i e d b y p a y m e n t of 2 per-cent of the
face a m o u n t of: T r e a s u r y b i l l s .a p p l i e d for, u n l e s s the t e n
ders a r e a c c o m p a n i e d b y an e x p r e s s 'g u a r a n t y of p a y m e n t b y
a n I n c o r p o r a t e d b a n k or trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, t e nders w i l l be
o p e n e d at the Federal Reserve B a nks a n d Branches, f o l l o w i n g
w h i c h p u b l i c a n n o u n c e m e n t will be m a d e b y the S e c r e t a r y of
the T r e a s u r y of the a m o u n t a n d price range of a c c e p t e d bids.
Those s u b m i t t i n g t e n ders will be a d v i s e d of the a c c e p t a n c e
or r e j e c t i o n thereof.
The S e c r e t a r y of the Treasury" e x
p r e s s l y r e s e r v e s the r i g h t to acce p t or r e j e c t a n y or all
tenders, in w h o l e or in part, a n d his a c t i o n in a n y suc h
r e s p e c t shall be final.
S u b j e c t to these r e s e r vations, t en
ders for $ 1 0 0 , 0 0 0 or less f r o m a n y one b i d d e r at 9 9 . 9 0 5 e n
tered on a f i x e d - p r i c e basis w i l l be a c c e p t e d in full.
Pay
m e n t of a c c e p t e d tenders at the prices o f f e r e d m u s t be m a d e
or c o m p l e t e d at the Federal Reserve B a n k in cash or o t h e r
i m m e d i a t e l y a v a i l a b l e funds on F e b r u a r y 10, 1944.
40-57
(Over)
2
T h e income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r in t e r e s t
or g a i n f r o m the sale or o t h e r d i s p o s i t i o n of the bills,
shall n o t have a n y exemption, as s u c h , •a nd loss f r o m the
sale or 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 bills, ,
s hall n ot h a v e
a n y special t r e a tment, as such, u n d e r Fe d e r a l tax Act s n o w
ior h e r e a f t e r enacted.
The b i lls shall be s u b ject to estate,
i nheritance, gift, or o t h e r excise taxes, w h e t h e r 'Federal or
State, b u t s h a ll-be exempt f r o m all t a x a t i o n n o w or h e r e
a f t e r im p o s e d on the p r i ncipal or i n t erest th e r e o f b y a n y
State, or a n y of the p o s s e s s i o n s of the U n i t e d States, or b y
a n y . l o c a l taxing a u t h o r i t y .
For p u r p o s e s of t a x a t i o n the
a m o u n t of d i s c o u n t a t w h i c h T r e a s u r y b i l l s are o r i g i n a l l y
sold b y the United.. States shall be c o n s i d e r e d to be interest.
U n d e r S e c tions 42. an d 117 (a) (1) o f t h e , I n t e r n a l Revenue
Code, as a m e n d e d by S e c tion 115 of the R e v e n u e Act of 1941,
the a m o u n t of d i s c o u n t at. w h i c h b i lls i s sued h e r e u n d e r are
sold shall not be .considered to a c c r u e u n til such bills
shall be sold, r e d e e m e d o r ‘o t h e r w i s e d i s p o s e d of, and s u c h
b i l l s . a r e e x c l u d e d ■f r o m c o n s i d e r a t i o n as capital- a s s e t s .
A c c o r d i n g l y , the owner of Treasury, b i l l s .(other*'than life
ins u r a n c e companies) i s s u e d h e r e u n d e r n e e d include in his
income tax r e t u r n only the d i f f e r e n c e b e t w e e n the p r ice p a i d
for such b i l l s , w h e t h e r on original issue or on s u b s e q u e n t
■purchase, and the a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n sale
or r e d e m p t i o n at m a t u r i t y d u r i n g the t a x a b l e y e a r for w h i c h
the r e t u r n is made,, as ordinary-gain, or loss.
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 Uo. 418, a s ' a m e n d e d , and
this n o t i c e ,* p r e s c r i b e the terms of the .Treasury bills and
govern, the c o n d itions of t h e i r i s s u e ., Copies of the c i r c u l a r
m a y be o b t a i n e d from a n y Federal Reserve B a n k or Branch.
-oOo-1
3-
\Government purchase of used clothes for relief purposes
was initiated some months ago when the Procurement Division,
on requisition from the Office of Foreign Relief & Rehabilitation
Operations, began buying 500 tons of assorted garments such
as shirts, underclothing and coats.
\As^this purchase program was being conducted, a nationwide
campaign to collect used clothing had been launched.
Through
churches and local organizations, quantities of suitable
clothing were gathered, fumigated and cleaned —
were used in relief operations.
and eventually
-
2-
s expected that the men will be paid in accordance with
B
the rules of the Geneva Conference«
The salvage materials will be converted into usable men’s
attire, such as overcoats, suits, hats, socks, underwear and
shirts.
Requisitions received by the Procurement Division from
Federal relief agencies will then be filled by stocks being
prepared at prisoner camps.
^Some^indication of the size of expected demands was revealed
by Mr. Mack’s announcement that relief organizations have already
asked the Procurement Division to supply 407,000 complete sets
of used clothing#
I The Procurement Division will send five experienced**4Nss§jgNpp«wpwrtrtBgf representatives to each camp to develop an ’’assembly line”
production schedule so that work will roll ahead at top speed*
Eventually, after the program is underway, the Division will station
only one supervisor at each camp.
iere is a definite possibility that this operation will
B
be expanded
to other camps in the near future,” Mr# Mack said.
”The coming program will result in a comparatively negligible
cost to the Treasury, but it will accomplish valuable purposes
overseas.”
He said that Mr. James Stilwell, Advisor on Supplies
to Assistanty^of State, Dean Achefcwa, had been a key factor in
making the necessary inter-governmental arrangements, and would
continue to aid in the program as it expands.#
| Approximately 6,000 Italian aw A «frcumwn. prisoners of war,
now stationed at camps in the United States, will soon begin
work repairing "salvage” clothing for use in American relief
operations abroad#
I Under a program originated by the Treasury1s Procurement
Division, the prisoners stationed at camps conveniently located
.
\
p fli
in the Middle*»West —
j
||
Si ' ffSffei
■/ '
will sort, launder, repair, reconvert,
mark and pack approximately 80,000,000 pounds annually of
woolen salvage materials, from clothing discarded by American
soldiers.
Several hundred experienced tailors, from the prisoners
ranks, will handle the more dextrous repair operations such as
re-fitting sleeves, sewing outside tears and adding pockets.
5tor Clifton E, Mack announced that the Army would
begin shipping material very soon and would continue to do
so "just as fast as the prisoners can handle shipments,"
Some prisoners now located at the camps in question will
be moved to make available the necessary buildings, laundry
and other equipment which the Army will install. The “PtNaagfi
V
■
sA4en will make available sewing machines Jkftf
and Mro 11Pnwi111 mininl~ BaarWiftn will supply
buttons, thread, needles and trimmings
"findings" -
l
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Saturday. February 5. 194-4.®
Press Service
No®
Approximately 6,000 Italian prisoners o f war, now stationed at
camps in the United States, will soon begin work repairihg "salvage"
clothing for use in American relief operations abroado
Under a program originated by the Treasury’s Procurement Division,
the prisoners stationed at canps conveniently located in the Middle-West —
will sort, launder, repair, reconvert, mark and pack approximately
80,000,000 pounds annually of woolen salvage materials, from clothing dis
carded by American soldiers® Several hundred experienced tailors, from
the prisoner’s ranks, will handle the more dextrous repair operations
such as re-fitting sleeves, sewing outside tears and adding pockets®
Director Clifton E® Mack announced that the Army would begin
shipping material very soon and would continue to do so "just as fast
as the prisoners can handle shipments®"
Some prisoners now located at the camps in question m i l be moved
to make available the necessary buildings, laundry and other equipment
which the A m y m i l install® The Procurement Division m i l make available
sewing machines from surplus stocks and will supply "findings” — buttons,
thread, needles and trimmings#
It is expected that the men m i l be paid in accordance with the
rules of the Geneva Conference®
The salvage materials will be converted into usable m en’s attire,
such as overcoats, suits, hats, socks, underwear and shirts0 Requisitions
received by the Procurement Division from Federal relief agencies m i l
then be filled by stocks being prepared at prisoner camps®
Some indication of the size of expected deimnds w a s revealed by
Mr® Mack’s announcement that relief organizations have already asked the
Procurement Division to supply 4-07,000 complete sets of used clothing#
The Procurement Division y111 send five experienced representatives
to each camp to develop an "assembly line" production schedule so that
work will roll ahead at top speedo Eventually, after the program is under
way, the Division will station only one supervisor at each camp0
¡§
¡J ’ g |P |f|
| | -
li
|||
i
!j| ..
! '’
:• ’■
'
'."A' ;
|H
lllllti
"There is a definite possibility that this operation m i l be ex
panded to^other camps in the near future," Mr® Mack said® "The coming
program will result in a comparatively negligible cost to the Treasury,
-
2
-
but it will accomplish valuable purposes overseas©11 Jfe said that
Mr© James Stilwell, Advisor on Supplies to Assistant Secretary of State,
Dean Acheson, had been a key factor in making the necessary inter
governmental arrangements, and would continue to aid in the program as
it expands0
Government purchase of used clothes for relief purposes was initiated
some months ago when the Procurement Division, on requisition from tire
Office of Foreign Relief & Rehabilitation Operations, began buying 500
tons of assorted garments such as shirts, underclothing and coats0
As this purchase program was being conducted, a nationwide campaign
to collect used clothing had been launched© Through churches and local
organizati ens, quantities of suitable clothing were gathered, fumigated
and cleaned — and eventually Y/ere used in relief operations©
0O 0
JebruaryN3^ 19^
STATUTORY DEBT LIMITATION
AS 01* JANUARY TL. IVkk
Section 21 of the Second Liberty Bond Act» as amended, provided that the
face amount of obligations issued under authority of th a t Act, "shall not exceed
in the aggregate $210,000,000,000 outstanding at any one time*B
Ihe following table shows the face amount of obligations outstanding and the
face amount which can s t i l l be Issued under th is lim itation?
Total face amount th at may be
outstanding a t any one time
$210, 000, 000,000
■Outstanding as of January 31» 19*&*
^Interest-bearing?
nds $ 6 7 , 9 H M i 7*o o ©
Treasury
Savings (Maturity
35.715.805,550
value)*
^07,253.250
Depositary
Adjusted Service
718.952.657
27.857.170,950
treasury notes
C e rtific a te s of
Indebtedness
treasury B ills
(Maturity value)
prepayment s ? 0
Treasury Bonds
Oorts* of Indebt*
$10b,786,**2S,H57
27,917,372.000
^
13,100.859^00
68,875.601,950
$173,661,83©,907
1,103,756,^00
1,089,617.000
2.193.373.600
Catured obligations on
which In te re st has ceased
earing no in te re st
20U.906,064
TI.S. Savings stamps
626,947
Excess p ro fits tax refund bonds
250,601,725
- 205,332.991,
—... -■:
1 ^
.
Face amount of obligations
i 8suable under above authority
176,310.938.523
1
$ 33.684.061.671
Beeoncileaent with Paily Stat*m*nt of th* ©hltad State» treasury
January 31. 1966
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act*
Deduet, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
Add other public debt obligations outstanding but not
subject to the statutory lim itation:
.__
- c
Interest-bearing (Pre-War, etc)
$195*926,660
Matured obligations on which
in te re st has ceased
rtcI*29$*JSl
Bearing no in te re st
95s . 7b3.075
Total gross debt outstanding as of January 31.
♦Approximate maturity value. Principal amount Jcurrent
redemption value) according to preliminary public debt
statement $28,901,027,962
$176,310,938,523
6*81^*777.588
169.^96,160,935
1*162*590.660
$170.658*751.595
February 7, 1944
STATUTORY DEBT LIMITATION
AS OE JANUARY 31, 1944
Section 21 of the Second Liberty Bond Act, as amended, provided that the
face amount of obligations issued under authority of that Act, ’’shall not exceed
in the aggregate $210,000,000,000 outstanding at any one time.”
The following table shows the face amount of obligations Outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be
outstanding at any one time
$210*0001066,000
Outstanding as of January 31, 1944:
Interest-bearing:
Bonds $67,944,417,000
Treasury
Savings (Maturity
35,715,805,550
value)*
407,253,250
Depositary
718.952.. 657
Adjusted Service
Treasury notes
Certificates of
Indebtedness
Treasury Bills
(Maturity value)
$104,786,428,457
27;857,170,950
27,917,372,000
13,100,859,000
Prepayments?
Treasuiy Bonds
Certs, of Indebt.
1,103,756,400
1,089,617,000
68.875.401.950
$173,661,830,407
2,193,373,400
Matured obligations on
which interest has ceased
Bearing no interest
204,906,044
U. S. Savings stamps
426,947
Excess profits tax refund bonds
250,401,725
205,332,991
Face amount of obligations
issuable under above authority
176,310.938.523
$ 33,689.061.477
Reconcilement with Daily Statement of the United States Treasury
J anuaiy 31, 1944
Total face amount of outstanding public debt obligations
issued under authority of the Second Liberty Bond Act.
Deduct, unearned discount on Savings bonds (difference
between current redemption value and maturity value)
Add other public debt obligations outstanding but not
subject to the statutoiy limitation:
Interest-bearing (Pre-War, etc.)
$195,926,860
Matured obligations on which
interest has ceased
7,900,125
Bearing no interest
958,763,675
Total gross debt outstanding as of Januaiy 31, 1944
*ApT>roximate maturity value. Principal amount (current
redemption value) according to preliminary public debt
statement $28,901,027,962,
$176,310,938,523
6,814,777.588
169,496,160,935
1,162,590,660
$170,658,751.595
2
Statutory,
Kirkpatrick,
Judge W i l l i a m H.
of the U n i t e d Stat e s D i s t r i c t court f o r E a s t e r n
Pennsy l v a n i a ,
Currency,
e x - o f f i c i o m e m b e r s are
Philadelphia;
P r e s t o n Delano,
W a s h i n g t o n ; a n d J o s e p h Buford,
S t ates A s s a y Office,
T he a n n u a l
C o m p t r o l l e r of the
assayer,
N e w Y o r k City.
"trial of
the coins",
as
the f u n c t i o n is known,
has b e e n m a d e w i t h o u t i n t e r r u p t i o n since 1792.
States Mints,
a t random,
Commission*
the U n i t e d
At all U n i t e d
one of e a c h 2 , 0 0 0 s i l v e r coins p r o d u c e d is taken
a n d p r e s e r v e d u n d e r seal,
The p r o c e d u r e was
to insu r e that
f o r t e s t i n g b y the A s s a y
set u p b y the e a r l y l a w m a k e r s
the n a t i o n 1 s m o n e y is m a i n t a i n e d at sta n d a r d s
of f i n e n e s s a n d w e i g h t .
M e m b e r s o f the C o m m i s s i o n serve w i t h o u t
are r e i m b u r s e d for t h e i r expenses.
m e d a l as a
c o mpensation,
but
T h e y w i l l r e c e i v e a s p e cial
t o k e n of t h e i r service.
M i n t a c t i v i t i e s of e x t r a - c u r r i c u l a r i n t e r e s t to the
Commission
this yea r i n c lude
b r o n z e one cent pieces,
c o p p e r are combined;
the r e c e n t l y r e s u m e d coinage of
in w h i c h s c r a p p e d shell cases a n d n e w
a nd the p r o d u c t i o n o f thousands of m e dals
for h e r o e s o f the Navy,
C o a s t G u a r d a n d M e r c h a n t M a r ine.
oOo
Mrs. N e l l i e T a y l o e
t o day that the
Ross,
traditional
D i r e c t o r of the Mint,
announced
s a m p l i h g a n d t e s t i n g of 1 9 4 3 coinage
as p r o v i d e d b y l a w w i l l b r i n g
t o g e t h e r at the P h i l a d e l p h i a M i n t
W e d n e s d a y a n d T h u r s d a y m e m b e r s of a n A n n u a l A s s a y C o m m i s s i o n
a p p o i n t e d b y the P r e s i d e n t .
The C o m m i s s i o n this y e a r w i l l
and
c o n s i s t of e l e v e n
three e x - o f f i c i o membe r s .
T h e y are:
C.
Co.,
E. Bell,
Norfolk,
o f finance,
passenger
Va •; Dr.
traffic manager,
J. E l l w o o d Amos,
U n i v e r s i t y o f P i t t s burgh;
N e w Y o r k C i t y b u s i n e s s man,
Apartments, Washington,
b u s i n e s s leader;
Phill i p s b u r g ,
D.
R a y A.
v a n Clief,
the W e s t c h e s t e r
Fred R. Mann,
M iss G r a c e Nixon,
N e w Jersey;
associate professor
now living at
C.;
Philadelphia
f o r m e r po s t m i s t r e s s ,
A r t h u r T. Pienkowsky,
Street, N. W., W a s h i n g t o n ,
D. C.,
Seaboard Railway
2923 Tilden
recently retired weights
expe r t o f the B u r e a u of S t a n dards; W i l l i a m E. Leahy,
Street, N. W., W a s h i n g t o n ,
D. C., S e l e c t i v e S e r v i c e official,
a t t o rney, a n d p r e s i d e n t of C o l u m b u s U n i v e r s i t y ; Mrs.
S henefield,
313 6 N e w a r k Street,
N. W., W a s h i n g t o n ,
i n s t r u c t o r at A m e r i c a n U n i v e r s i t y ; Dr.
C i t y p h y s i c i a n ; Mrs.
821 1 5 t h
B r e w e r L.
H ale
D. C.,
B e n j a m i n Salzer,
Stouffer,
H a g e rstown,
New York
Md., w o m a n
c o u n s e l l o r f o r Fai r c h i l d A i r c r a f t Corp.; a n d M o r t o n Schwartz,
N e w Y o r k City b u s i n e s s man.
TREASURY DEPARTMENT
Washington
F O R IMM E D TA T E RELEASE.
Monday, F e b r u a r y 7, 1944.
Press Service
No. 4 0 - 6 0
Mrs. N e l l i e Tayl o e R q s .
s , D i r e c t o r of t h e Mint, a n n o u n c e d
t o d a y that the t r a d i t i o n a l s a m p l i n g a n d t e s t i n g of 1943 coinage
as p r o v i d e d by law w i l l b r i n g t o g e t h e r at t h e P h i l a d e l p h i a M int
W e d n e s d a y a n d T h u r s d a y m e m b e r s of an A n n u a l A s s a y C o m m i s s i o n
a p p o i n t e d by t he P r e s i d e n t .
i
T h e C o m m i s s i o n t his y e a r w i l l consist of eleven a p p o i n t e d
a nd t h r e e e x - o f f i c i o members.
T h e y are:
C. E. Bell, p a s s e n g e r t r a f f i c manager, S e a b o a r d R a i l w a y Co.,
Norfolk, Va.; Dr. J. E l l w o o d Amos, a s s o c i a t e p r o f e s s o r of finance,
U n i v e r s i t y of Pittsburgh; R a y A. va n C l i e f , N e w Y o r k C i t y b u s i
ness man, n o w l i v i n g at t h e W e s t c h e s t e r A p a r t m e n t s , W a s h ington,
D. C.; B r e d R. Mann, P h i l a d e l p h i a b u s i n e s s leader; Miss G r a c e
Nixon, f o r m e r p o s t m istress, Ph i l l i p s b u r g , N e w Jersey; A r t h u r T.
Pienkowsky, 2923 Tilden Street, N.W., Wash i n g t o n , D. C., r e c e n t l y
r e t i r e d w e i g h t s expert of t he B u r e a u of Standards; W i l l i a m E,
Leahy, 821 1 5 t h Street, N.W., W a s h i n g t o n , D. C., S e l e c t i v e
S e r v i c e official, attorney, a n d p r e s i d e n t of C o l u m b u s U n i v ersity;
Mrs. H a l e Shenefield, 3136 N e w a r k Street, N.W., Y/ashington, D. C.,
i n s t r u c t o r at A m e r i c a n U niversity; Dr. B e n j a m i n Salzer, N e w Y o r k
C i t y physician; Mrs. B r e w e r L. Stouffer, Hage r s t o w n , Md., w o m a n
c o u n s e l l o r f o r F a i r c h i l d A i r c r a f t Corn.; a n d M o r t o n Schwartz,
N e w Y o r k C i t y b u s i n e s s man.
Statutory, e x - o f f i c i o m e m b e r s a re Judge V/illiam H. Kirkpatrick,
of t h e U n i t e d States D i s t r i c t court f or E a s t e r n Pe n n s y l v a n i a ,
P h i l a d e l p h i a ; P r e s t o n Delano, C o m p t r o l l e r of t h e Currency,
Y/ashington; a n d J o s e p h Buford, assayer, t h e U n i t e d Stat e s A s s a y
Office, N e w Y o r k City.
T he a n n u a l ’’t r i a l of t h e c o i n s ” , as the f u n c t i o n is known,
has bee n m a d e w i t h o u t i n t e r r u p t i o n s i nce 1792.
At a l l U n i t e d
S t a t e s Mints, one of eac h 2,000 s i l v e r coins p r o d u c e d is t a k e n
at random, a n d p r e s e r v e d u n d e r seal, f or t e s t i n g by t h e A s s a y
Commission.
T he p r o c e d u r e was set up b y t h e early l a w m a k e r s to
insure t h a t t h e n a t i o n ’s m o n e y is m a i n t a i n e d at s t a n d a r d s of
fineness and weight*
ar p r p ^ w L f l f ft !?e+ K 0mlTlission s e r v e
m
e d a l as
as a
a ?
o V p n of
of ï
f elr
xpenses* They
meaai.
tolcen
th
i r eservice.
compensation, but
receive a special
Mirrt a c t i v i t i e s of e x t r a - c u r r i c u l a r interest to t h e Commission this y e a r include t h e r e c e n t l y r e s u m e d coinage of b r onze
axe
coSb-ined0 e S U 1ïv,W h l 0 t S C r a p p e d s h e11 oases a nd n e w copper
w d thp pr°duct:l-on of t h o u s a n d s of m e d a l s f o r
h e roes of t h e Navy* C o ast G u a r d a n d M e r c h a n t Marine.
hernee n-f + !
TR8ASÜRT » B M » W
8«sM.I3gfcöB
FOR KSLEA3S, aOKHIfJG KSB3PAPSBS
Tgssâssu
Press Sonríe#
«
M
m
a.
V ô - 6 /
Th« Secretary of the Treasury announced last evening timi the tendere for
$1,000,000,000, or thereabouts, of 91~day Treasury bilie to be dated February 10
and to nature May 11* 1944» which were offered on February 4, were opened at the
Federal Reserve Banks on February 7*
The details of this issue are as folio«» i
Total applied for - 12,551,503,000
Total accepted
* 1,005,560,000
Average price
- 99*905/
(Includes #77,734,000 entered mi a fixedprice basis at 99*905 and accepted in full)
Sspiivalent rate of discount approx» 0*374# per annua
Hange of accepted competitive bidet
Hi#
• 99*910
- 99*905
Low
Sqfulvalent rate of discount approx* 0*356# per annum
**
m
m
m
*
0*376# **
»
(25 percent of the amount bid for at the low-price was accepted)
Federal Reserve
District
Boston
hew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Balias
San Francisco
to m .
Total
Applied for
I
86,955,000
1,531,409,000
72.238.000
99.685.000
54.218.000
12.858.000
36-9,326,000
74.340.000
30.109.000
33.677.000
29.928.000
Total
I
29,993,000
557.159.000
31.663.000
60.985.000
43.343.000
12.533.000
113.070.000
29.790.000
18 859.000
25.577.000
17.703.000
64.885.000
.
$1,005 ,560,000
T REA SU RY DE PA RTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, F e b r u a r y 8, 1944*
Press S e r vice
No. 40-61
The S e c r e t a r y of the T r e a s u r y announced, las t
the tenders
for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 ,
or t h e r e abouts,
ev e n i n g that
of 9 1 - d a y
T r e a s u r y b i l l s to be d a t e d F e b r u a r y 10 a n d to m a t u r e M a y 11,
w h i c h wer e
1944,
o f f e r e d on F e b r u a r y 4, w e r e o p e n e d at the Federal
Reserve B a n k s on F e b r u a r y 7*
The d e t a i l s of this
issue are as
T o tal a p p l i e d for
T o tal a c c e p t e d
$2*551,503,000
1,005,560,000
(Includes $ 7 7 , 7 3 4 , 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 at
9 9 . 9 0 5 a n d a c c e p t e d in full)
9 9 . 9 0 5 / E q u i v a l e n t rate of disco u n t
approx, 0 . 3 7 4 $ p e r a n n u m
A v e r a g e p r ice
follows:
Range of a c c e p t e d c o m p e t i t i v e bids:
High
- 9 9 . 9 1 0 E q u i v a l e n t rate of d i s c o u n t
a p p rox. 0 . 3 5 6 $ pe r a n n u m
- 9 9 . 9 0 5 E q u i v a l e n t rate of di s c o u n t
approx, 0 , 3 7 6 $ p e r a n n u m
Low
(25 p e r c e n t of
the a m o u n t b i d f o r at
the lo w price was accepted)
Federal Reserve
District
Total
A p p l i e d for
Total
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
K a nsas C i t y
D a llas
San Francisco
$
$
TOTAL
86,955,000
1,531,409,000
72,238,000
99,685,000
54,218,000
Ì2,858,000
369,326,000
74,340,000
30,109,000
33,677,000
29,928,000
156,760,000
$2,551,503,000
-oOo-
29,995,000
557,159,000
31,663,000
60,985,000
43,343,000
12,533,000
113,070,000
29,790,000
18,859,000
25,577,000
17,703,000
64,885,000
11,005,560,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSP APERS,
W e d n e s d a y , F e b r u a r y 9, 1944»
The Treasury, W a r a n d N a v y D e p a r t m e n t s
the f o l l o w i n g joint statement;
Press S e r v i c e
No. 4 0 -62
t o n i g h t issued
The A m e r i c a n marines, sailors a n d soldiers who have b e e n
d r i v i n g out the Japanese f r o m their Central P a c i f i c s t r o n g
h o lds hav e b r o u g h t w i t h t h e m for t h e i r use a n d for the u se of
the i n h a b i t a n t s of these islands the " H a w a i i a n dollar," i.e.,
the special H a w a i i a n Series of U. S. currency.
The use o f this H a w a i i a n c u r r e n c y emp h a s i z e s the m a r k e d
change w h i c h has b e e n b r o u g h t a b o u t in the Central P a c ific
t h eater o f o p e r a t i o n s d u r i n g the last year.
The i n t r o d u c t i o n
o f the special " H a w a i i a n dollar" in Jul y 1942 was taken as a
step towards the complete economic d e f e n s e of Hawaii, while
today the "Ha w a i i a n dollar" is b e i n g u ? e d to faci l i t a t e the
off e n s i v e a g a i n s t the J a p a n e s e - h e l d islands thousands of
m i l e s f r o m H a w a i i in the d i r e c t i o n of Tokyo.
W h e n the "Hawaiian dollar" was introduced, the Japanese
h a d b e e n r e c e n t l y d e f e a t e d in the b a t t l e of M i d w a y but had
just l a n d e d forces on the I s l a n d o f Kiska a n d r e s p o n s i b l e
A m e r i c a n naval and. m i l i t a r y leaders w e r e p o i n t i n g out that a
threat to H a w a i i still existed.
It was a g a i n s t this b a c k
g r o u n d that m e a s u r e s w e r e t a k e n by the U. S. T r e a s u r y f o r the
w i t h d r a w a l of all regular U. S. c u r r e n c y in c i r c u l a t i o n in
the T e r r i t o r y o f H a waii a n d its r e p l a c e m e n t b y a n e w series
of U. S. currency.
This n e w c u r r e n c y consists of U. S. s i l v e r
c e r t i f i c a t e s a n d Federal Reserve B a n k n o t e s b e a r i n g the
d i s t i n c t i v e o v e r p r i n t "Hawaii" in b o l d o p e n - f a c e d type on each
end of the face of the n o t e a nd the w o r d "Hawaii" in large
open-»faced type a c ross the r e v erse side of the note.
After
A u g u s t 15, 1942 no c u r r e n c y other than U. S f currency,
H a w a i i a n Series, could be h e l d or u s e d in H a w a i i w i t h o u t a
l i c e n s e fro m the G o v e r n o r of the
T e r r i t o r y of Hawaii.
On the
o t h e r hand, in order to e f f e c t u a t e the p u r p o s e s of its i s
suance, the U. S, currency, H a w a i i a n Series, was kept f rom
c i r c u l a t i n g on the M a i n l a n d of the U n i t e d States by virtue
of a p r o h i b i t i o n on its e x port fro m Hawaii.
The d i s t i n c t i v e c h a r a c t e r i s t i c s o f the " H a w a i i a n dollar"
a re of equal value for o f f e n s i v e p u r p o s e s as well as d e f e n
sive.
It is in the interests of our G o v e r n m e n t to be a ble
to id e n t i f y e a sily the cu r r e n c y w h i c h is b e i n g u s e d in areas
2
of combat, in o r d e r to f a c i litate the i s o l a t i o n o f this p a r
t i c u l a r c u r rency if it s h o u l d fall into e n e m y hands.
It w o u l d have b e e n possible, of course, to a c h ieve
p r a c t i c a l l y all of the a d v a n t a g e s o f the u s e of the " H a w a i i a n
dollar
b y the u s e of the y e l l o w seal c u r r e n c y u s e d in N o r t h
A f rica, o i c i l y a n d Italy,
It was felt, however, that since
these^ Ce n t r a l P a c i f i c ^ i s l a n d s have c l o s e r direct m i l i t a r y
a n d financial relations w i t h H a waii than w i t h the M a i n l a n d
a nd since the " H a w a i i a n dollar" has all the a d v a n t a g e s of the
y e l l o w seal currency, 'it was p r e f e r a b l e to use the " H a w a i i a n
dollar
in the Central' P a c i f i c operations.
_
The rate of ex c h a n g e that has b e e n e s t a b l i s h e d for these
l i b e r a t e d Islands of the Central Pacific is 20 J a p anese m i l
i t a r y yen to one " H a w a i i a n d o l l a r , "
This rate was deter-»
m i n e d in the light of p r e s e n t p r e v a i l i n g c i r c u m s t a n c e s in
these small island groups a n d w i l l in no w a y be c o n s i d e r e d a
p r e c e d e n t for the rates that m a y be a p p l i e d to o t h e r areas
n o w o c c u p i e d b y the Japanese,'
-oOo-
-
2
-
of the Currency in Washington where he served in various capacities until
July, 194-1> when he was made Chief National Bank Examiner of the Boston
District.
To succeed Mr. Krippel as Chief Examiner of the Boston District,
Michael J . Hurley has been promoted.
Mr. Hurley was born in Boston,
is fifty years of age and has been connected with the Comptroller1s Office
continuously since 191S when he was appointed assistant national bank
examiner and assigned to the Boston District.
national bank examiner in 1920.
He was commissioned
During this period Mr. Hurley received
numerous promotions and has served in practically all parts of New England.
TREASURY DEPARTMENT
Washington
j Jj
FO&dlELEASE, AFffiRSOCN NEWSPAPERS,
Wednesday, February Q T IQ/, _______
Press Service
No, Y o
6
4
3
Preston Delano, Comptroller of the Currency, announced today
the resignation of MBQk Gibbs Lyons as Chief National Bank Examiner of
the New York Federal Reserve District, effective February 29, 1944, to
accept the Presidency of the First Stamford National Bank of Stamford,
Connecticut*
Mr* Lyons is a native of Jackson, Georgia, and is forty—five years
of age.
He was appointed assistant national bank examiner in 1920
and in 1924 was transferred from the field service to the Office of the
Comptroller of the Currency, Washington, D. G.
He was commissioned
national bank examiner in 1927, serving in various capacities until
January, 1938, when he was designated Chief Examiner of the Atlanta
Federal Reserve District and in October, 1939, was transferred to New
York as Chief Examiner.
To succeed Mr. Lyons,
Frank W. Krippel, at present Chief
National Bank Examiner of the Boston Federal Reserve District, will
be transferred to New York.
is forty-eight years of age.
Mr. Krippel was born in Illinois and
After having had four years banking
experience he was appointed assistant national bank examiner in 1920.
He was commissioned national bank examiner in 1924.
He was detailed
to the Reconstruction Finance Corporation, where he assisted in the
Washington office of that Corporation until March, 1933 when the detail
was terminated.
He was transferred to the Office of the Comptroller
TREASURY DEPARTMENT
Washington
F O R I M M E D I A T E RELEASE,
W e d n e s d a y , F e b r u a r y 9, 1944,
Press S e r v i c e
No. 4 0 -63
P r e s t o n Delano, C o m p t r o l l e r of the C u r rency, a n n o u n c e d
today the r e s i g n a t i o n o f Gibbs Lyons as C h i e f N a t i o n a l B a n k
E x a m i n e r of the N e w Y o r k Federal Reserve District, e f f e c t i v e
F e b r u a r y 29, 1944, to a c c e p t the P r e s i d e n c y of the First
S t a m f o r d N a t i o n a l B ank of Stamford, C o n n e c t i c u t .
Mr. L y ons is a n a t i v e of Jackson, Georgia, a n d is fortyfive years of age.
He w as a p p o i n t e d a s s i s t a n t n a t i o n a l b a n k
e x a m i n e r in 1920 a n d in 1924 was t r a n s f e r r e d from the field
service to the Office of the C o m p t r o l l e r of the Currency,
W a s h i n g t o n , D. C.
He was c o m m i s s i o n e d n a t i o n a l b a n k e x a m i n e r
in 1927, serving in various capa c i t i e s u n til January, 1938,
w h e n he w a s d e s i g n a t e d C h i e f E x a m i n e r of the A t l a n t a Federal
R e serve D i s t r i c t a n d in October, 1939, was t r a n s f e r r e d to
N e w Y o r k as C h i e f Examiner.
To s u c c e e d Mr. Lyons, Frank W. Krippel, at p r e s e n t C h i e f
N a t i o n a l B a n k E x a m i n e r o f the B o s t o n Federal Reserve D i s
t r i c t ^ will be t r a n s f e r r e d to N e w York.
Mr, Kr i p p e l was b o r n
In Illinois a n d is f o r t y - e i g h t years o f age.
After having
had^ f o u r years b a n k i n g e x p e r i e n c e he was a p p o i n t e d a s s i s t a n t
na t i o n a l b a n k e x a m i n e r in 1920.
He was c o m m i s s i o n e d n a t i o n a l
b a n k e x a m i n e r in 1924.
He w as d e t a i l e d to the R e c o n s t r u c t i o n
F i n a n c e C orporation, w h e r e he a s s i s t e d in the W a s h i n g t o n
office of that C o r p o r a t i o n u n til March, 1 933 w h e n the detail
was terminated.
He was t r a n s f e r r e d to the O f f i c e of the
C o m p t r o l l e r of t he C u r r e n c y in W a s h i n g t o n w h ere he s e r v e d in
various c a p a c i t i e s u n til July, 1941, w h e n he was m a d e C h i e f
N a t i o n a l B a n k E x a m i n e r of the B o s t o n District.
To s u c c e e d Mr. K r i ppel as. C h i e f E x a m i n e r of the B o s t o n
District, M i c h a e l J. H u r l e y has b e e n promoted.
Mr. H u r l e y
was b o r n ^ i n Boston, is f i f t y years of age a n d h as b e e n c o n
n e c t e d w i t h the C o m p t r o l l e r 1s Office c o n t i n u o u s l y since
1918 w h e n he w as a p p o i n t e d a s s i s t a n t n a t i o n a l b a n k e x a m i n e r
a n d ^a s s i g n e d to the B o s t o n Dis t r i c t .
He was c o m m i s s i o n e d
n a t i o n a l b a n k e x a m i n e r in 1920.
D u r i n g this p e r i o d
Mr. H u r l e y r e c e i v e d n u m e r o u s p r o m o t i o n s a n d has s e r v e d in
p r a c t i c a l l y all p a rts of N e w E n g land.
-oOo-
FOR IMMEDIATE RELEASE,
February 8, 1944.
The Bureau of Customs announced today preliminary figures shoving the
quantities of wheat and wheat flour entered» or withdrawn from warehouse, for
consumption under the import quotas established in the Presidents 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 followst
l
Country of
Origin
¡Wheat flour, semolina, crushed
:
WHEAT
¡or cracked wheat, and similar
:___________________________ ¡_______ wheat -products_____ 1___
:
:
Imports
¡
:
Imports
¡Established:May 29, 1943
¡Established ¡May 29, 1943
•*
¡to Jan. 29.1944¡
Quota
¡to Jan. 29.
Quota
(Bushels)
(Pounds)
(Pounds)
(Bushels)
795,000
Canada
China
mm
Hungary
«Ml
Hong Kong
Japan
United Kingdom
100
Ml
Australia
Germany
100
Syria
100
Hew Zealand
**
•MS
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
France
1,000
«
Greece
Mexico
100
mm
Panama
mm
Uruguay
mm
Poland and Danzig
Sweden
Ml’
Yugoslavia
Norway
•
Canary Islands
1,000
Rumania
Guatemala
100
100
Brazil
Union of Soviet
Socialist Republics
100
Belgium
100
800.000
795,000
mm
mm
mm
«
. mm ■
mm
«
Ml
Ml
1M
—
mm
mm
mm
m
m
mft
m
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
mm-
—
-
795.000
212,740
Ml
mm
m
-
if
«•
-
4»
M
'«*
mm
m
m
•
mm
mm
mm
• Ml
m,
-
«•
mm
-
mm
mm
4.000.000
212.740
'JP
TREASURY DEPARTMENT
Washington
POR IMMEDIATE RELEASE,
Wednesday. February 9, 1944,
Pïoss Sorbic©
. No* 40*64
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 president1s 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:
Country of
Origin
Wheat flour, semolina, crushed
or cracked wheat, and similar
l wheat products
:
Imports
Imports
Established:May 29, 1943
Established :May 29, 1943
Quota
:to Jan. 29,1944
Qpqta
:to Jan, 29, 1944
WHEAT
(Bushels)
795,000
Canada
China
Hungary
Hong Kong
J apan
100
United Kingdom
Australia
100
Germ ary
100
Syria
New Zealand
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
Prance
Greece
100
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guatemala
100
Braz il
Union of Soviet
Socialist Republics
100
100
Belgium
800,000
(Bushels)
(pounds)
(Pounds)
795,000
.Ü
-
3,815 ,'000
24,000
1$,000
1$, 000
8^ 000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
—
212,740
—
—
-
-
—
4,000,000
212,740
•9*
.—
- '
—
—
—
—
—
795,000
— oOo~
—
—
—
POR IMMEDIATE RELEASE,
l^kruary 8. 1944,
The Bureau of Oustoms announced today preliminary figures showing the
quantities of coffee authorized for entry for consumption under the quotas
for the 12 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
follows;
Authorized for entry
— £gr..iSfthgqffiptiQa_____
of (Date) ; (Pounds)
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Cuat em&la
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-signatory Countries
¿/
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Jan* 29, 1944
tt
B
B
B
B
B
M
B
B
B
H
B
B
B
340,530,414
186,101,246
2,65^,630
2,717,065
4,543,321
13,300,404
13,937,876
19,520,080
9,049,637
1,543,625
21,879,395
873,349
942,582
14,201,050
2,724,595
Qpotas as established by action of the Inter-American Coffee Board on
January 12, 1944.
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, February 9* If44*
Press Service
No* 40*-65
The Bureau of G m % m m anndUhcâé
preliminary figures showing the
$$&
quantities of coffee
for the 12 months
for consumption under the quotas
1», If43* provided for in the Inters
American Coffee Agre^s^t*
fcST
President pn April 15, 1941, as
follows:
Country of Production
•
.
:
: Authorized for entry
Quantity :
for consumption
{M w 4 & ) 1 /
: As of (Date) : (Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Si gnatpry Countries:
1/
1 *355*183, m
458,336*340
29,100,700
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Jan* 29, 1944
n
I
n
h
u
M
n
u
n
ii
ti
ii
m
ll
340,530,414
186,101,246
2,652,630
2,717,065
4,543,321
13,300,404
13,937,876
19,520,080
9,049,637
1,543,625
21,879,395
873,349
942,582
14,201,050
2,724,595
Quotas as established by action of the Jnter-Afiierican Coffee Board on
January 12, 1944
COTTON CAfifc' STRIPS,/ COMBER WASTE J. ¿¡Ap WASTE; SLIVTJi JtfASTE, AND ROVING WASTE,
WHETHER' OR NOT MANTE’ACTUREi) OR OTHERWISE ADVANCED IN. VALUE. . Annual quotas
commencing September 20, by Countries of Origin:
*
\
1
1/
Total quota, provided, .however, that not more than 33-0L/3percent/ of -the.
quotas shall be filled by cotton wastes other than card strips/, and comber
wastes made,from cottons of 1-3/16 inches or more in staple length in the
[case of the following countries; United Kingdon^ .France,. Netherlands, ■\
Switzerland, Belgium, Germany and Italy:
(In Pounds)
; î
.
;TOO?AL I M P O m k-"mTAHCÏSÏÏÈDilmports Sept. 20,
Country of Origin : Established îSept. 20, 1943,:33~l/3$ of :1943, to
—
-: TOTAL QUOTA ; Jan» 29, 1944 ;Total Quota: Jan# 29« 1944 --------1A/
/
United Kingdom.. . . . .
Canada..
France. . . . . . . . . . . . . .
British India.......
Netherlands.. . . . . . . .
Switzerland.. . . . . . . .
Belgium..,
Japan..... ....
China.
Bgypt....... ..... *
Cuba...............
Germany.. . . . . . . . . . . .
Italy.... ....
TOTALS
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
'
1,441,152
'm*'
'
75,807
i-e -
f
'
'
r
I
Í .V. '
1
'■ , > ,
-*•
>
. *
5,482,509
—
•
•
22,747
14,?96
Ì2,863
" _ ’
; m
:.
•
•
25,443
7,088.
1,599,886.
’’
,
",
■
■
iH*--- f-----— ■— *
--2j-
-included in total imports*~ column 2*
^ho President1s proclamation, signed March,31, 1942, exempts from import
- quota restrictions card strips made from cottons having a staple 1-3/i6
inches or more in length.
£t]~~
— oQo~
FOB IMMEDIATE RELEASE,
February 8 « 1944.
,t
\\b'H
^
The Bureau of Customs announced today that preliminary reports'from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the Presidentas proclamations of September B>, 1939,
and December 19, 1940, as follows, during the pér^ocLTSéptember,.20., 1943* to
January 29, 1944:
'
•
■
COTTON HAVING A STAPLE OF LESS THAN l~ll/l6 INCHES' (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE'LENGTH AND CHIEFLY USED'’IN THE MANU
FACTURE OF BLANKETS AND BLANKETING,■AND OTHER THAN LINTERS)'; Annual quotas
commencing September 20 ,. by Countries of Origin:" .
(In Pounds)
r Country of
Origin
*
•
Egypt and the AngloEgyptian Sudan
Perù* . . .... . . . . . . .... ..
British I n d i a . . . . . . . . . .
China...... .. ...... . . . .
...........
Mexico
Brazil............. ..
Union of Soviet
Socialist Republics...
Argentina.. . . . . . . . . . . . . .
Haiti.....................
Ecuador. ;...... ..
Honduras.... .. .... ..
Paraguay...... ..
Colombia.. . . . . . . . . . . . . . .
Iraq.................. .
British East Africa....
Netherlands East Indies.
Barbados............ .
Other British West
Indies l/.........
Nigeria.............. .
Other British West
Africa 2 j * ........ ..
Other French Africa j|/*
Algeria and Tunisia......
• Staple length less : Staple length 1—1/8" or more
than l-l/8 ,,:
:..bût less than 1-11/16»
Imports Sept , : Established : Imports Sept.
Established: 20 , 1943, to :
Qpota
: 20, 1943, to
Quota
♦ Jan* 29, 1944. 45.656.420 . Jan* 29* 1944
\
.. ,
^ - -,
7837816
247,952
2,003,483
1,370*791
8 ,883,.259
618,723
-, •
-
18,931*667
799*764
73*576
'&*
•
8*883*259
420,000
4757124
5 , 20 3
237
9,333
-752
871
124
195
2,240
71,388
m
' -
f ’■•
’*■* .
•*
~ ' m
.
m
■. m
■■
Li.■'
-w
■
m
21,321
5,377
16,004
689
mm
-
-
14,516,882
■
9*376,835
45,656,420
1./ Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago*
2 / .Other than Gold Coast and Nigeria.
3/ ...Other than Algeria, Tunisia, and Madagascar.
(Over)
19,731,431
TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE,
Wednesday. February 9, 1944.
Press Service
No. 40-66
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5 1939
and December 19, 1940, as follows, during the period September 20, 1943 to
January 29, 1944:
’
COTTON HAVING A STAPLE OP LESS THAN 1-11/16 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OE LESS THAN 3/4 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?
1In Pounds)
Staple length less : Staple length 1-1/8” or more
t
than 1-1/8”
but less than 1-11h 6»
:
:Imports Sept,: Established ; Imports Sept.
|Established:2Q, 1943, to :
Quota
t 20, 1943, to
J
Quota
:Jan. 29, 1944: 45,656.420 : Jan. 29, 1944
i
Country of
Origin
Egypt and the AngloEgyptian Sudan.,,,,,,,
Peru.,.................,
British India.,,,,....,.
China.
Mexico....
Brazil.... ...........
Union of Soviet
Socialist Republics...
Argentina..... .
Hail i........ .......,.,
Ecuador.................
Honduras,...............
Paraguay................
Col ombia.......... .
British East Africa......
Netherlands East Indies,
B sij-oados
Other British West
Indies 1/.,..........
Nigeria......... .
Other British West
Africa 2/.,.,,...,...
Other French Africa 3/.
Algeria and Tunisia,..,,
783,816
247r952
2,003,483
1,370,79!
8,883,259
618,723
475,124
5,203
237
9,333
752
871
124
195
2,240
71,388
—
U
3/
18,931,667
799,764
rr'
-r
—
—
—
'9
—r
•Q
—
21,321
5,377
».
16,004
689
-
—
14,516,882
n
-
73,576
w
n
8,883?259
420,000
•
-
9,376,835
—
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar.
19,731,431
~2~
P
COTTON CARD STRIPS,/COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING- WASTE,
WHETHER OR NOT MANUPACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas
commencing September 20, by Countries of Origin,:
Total quota, provided, however, that not more than 33-1/3 percent of the quotas
shall be filled by cotton wastes other than card strips 2/ and comber wastes
made from cottons of 1-3/16 inches or more in staple length in the case of the
following countries.: United Kingdom, France, Netherlands, Switzerland, Belgium,
Germany and Italy:
(In Pounds)
;TOTAL IMPORTS :ESTABLISHED: Import s Sept. 20,
Country of Origin ; Established :Sept. 20, 1943 :33-1/3$ of :1943, to
5 TOTAL qUOTA :Jan. 29, 1944 :Total Qpota,:«Tan. 29, 1944
1/
United Kingdom......
C a n a d a . ....... ..,
Prance............ .
British India.
Netherlands.
Switzerland.........
Belgium#...........
J apan................
China.... ........
Egypt.............. ♦
Cuba.......... .....
Germany...........,.
Italy...............
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
1,441,152
T-
75,807
T-
■rr
-
r. ■
22,747
14,796
12,853
—
g
- '
■ TTT
s?
-
5,482,509
.j
-,
g|
_
-,
y.
rr
r-
rr
-g,
—
—
25,443
7,088
—
1,599,886
-
1/
Included in total imports, column 2.
2/
The President’s proclamation signed March 31, 1942, exempts from import
quota restrictions card strips made from cottons having a staple 1~3/16
inches or more in length#
~oQo~
2 -
Commodity
Silver or “black
foxes, furs,
and articles?
Foxes valued
under $250 each
and whole furs
and skins
Tails
•
•
!
1_______ Istahlished Quota
--- ? Period and Country 1 OllflYltl frr
Month of January
Canada
Unit
of
sImports as of
• Jan* 29,
:
1944
17,500
Humber
9,769
Other than Canada
7,500
Humber
20
12 months from
Dec* 1, 1943
5,000
Piece
2
500
Pound
495
550
Potrnd
m
500
Unit
Paws, heads, or
other separated
parts
h
Piece plates
n
Articles, other
than piece
plates
n
oO<>'
15
f 0-^67
¿'
____________ |
~
TOH XMMEDIAIE EfflEiSE,
February 8. 1944.
The Bureau, of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements, from'
the beginning of the quota periods to January 29, 1944, inclusive, as follows:
Established Quota
Commodity
!
Period and Country;__ Quantity
¡Imports as
;
Unit
:of Jan. 29
;
of
S Quantity 5 1944
Whole milk, fresh
or sour
Calendar year
3,000*000
Gallon
485
Cream, fresh or sour
Calendar year
1*500,000
Gallon
104
Fish; fresh or
frozen, filleted,
etc«, cod, haddock,
hake, pollock, cusk
and rosefish
Calendar year
15,000,000
Pound
1,064,042
90,000,000
60,000,000
Pound
Pound
31,073,170
3,629,340
Undetermined
Square
White or Irish
potatoes;
certified seed
Other
12 months from
Sept* 15, 1943
Bed cedar shingles
Calendar year
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than 6$ of
total soluble
solids
Calendar year
1,500,000
Pound
(unstemmed
equivalent)
Gallon
101,757
21,720,079
2,714
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE REIEASEp .......•• •••-•■
**
Thursday, February 10, 1944,
•<••• •
■
- • ^-•.r .
Prsss Service
No. 40-67
-
The Bureau of Customs announced today preliminary figures for imports of
commodities within quota limitations provided for under trade agreements, from
the-beginning of the quota periods to January 29, 1944, inclusive, as follows:
Commodity
Established Quota
:
* Period and Country:
Quantity
:
Unit
:Import s as
:of Jan. 29,
:
of
1944
: Quantity :
- Calendar year
3,000,000
Gallon
485
Cream, fresh or sour
Calendar year*
1,500,000
Gallon
104
Pish; fresh or
frozen, filleted,
etc., cod, haddock,
hake, pollock, cusk
and rosefish
Calendar year
15,000,000
Pound
1,064,042
90,000,000
60,000,000
Pound
Pound
31,073,170
3,629,340
Undetermined
Square
Whole milk, fresh
or sour
White or Irish
potatoes:
certified seed
Other
12 months from
Sept. 15, 1943'
Red cedar shingles
Calendar year
Cuban filler tobacco,
unstemmed or stemmed
(other than cigarette
leaf tobacco), and
scrap tobacco
Calendar year
22,000,000
Molasses and sugar
sirups containing
soluble nonsugar
solids equal to
more than 6*$ of
total soluble
solids
Calendar year
1,500,000
Pound
(unstemmed
equivalent)
Gallon
101,757
21,720,079
2,714
f
Commodity
.
- 2 ~
Established Quota
^Period and Countiy !
Silver or black
foxes, furs,
and articles?
Poxes valued
under $250 each,
and whole furs
and skins
Tails
Month of Januaiy
Canada
Quantity
:
Unit . : Imports as
:
of
: of Jan. 29,
: Quant ity :
1944
17,500
Humber
9,769
Other than Canada
7,500
Number
20
12 months from
Dec. 1, 1942
5,000
Piece
2
495
Paws, heads, or
other separated
parts
«
500
Pound
Piece plates
it
550
Pound
Articles, other
than piece
plates
it
500
Unit
~o0o-
-■
15
i
for such bills, whether on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemotion at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418, as amended,*and this notice, pre
scribe the, terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Brancfi.
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in pant, and his action in any such respect shall be final.
Subject to these reservations, tenders for
$100,000 or less from any 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 Bank
in cash or other immediately available funds on
Februar^l?« 1944
The income derived .from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and li7 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941 > the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwise disposed of, and
such bills are excluded from consideration-as capital assets.
Accordingly, the
owner of Treasury bills (oilier than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
Ü
S
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, February 11. 1 9 LL ______ .
The Secretary of the Treasury, by this public notice, invites tenders
for $1,000*000,000
91-dav Treasury bills, to be issued
-par
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided,
, or thereabouts, of
The bills of this series will be dated
mature ; &ky IB, 1944
interest.
February 17, 1944
* and will
fm
'
.when the face amount will be payable without
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock o. m v, Eastern War time,
Monday, February 14» 1944
Tenders will not be received at the Treasury Department, Washington-.
Each tender
must be for an even multiple of $1,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g., 99.925.
may not be used.
Fractions
It is urged that tenders be made on thesprinted forms and for
warded in the special envelopes which will be supplied by Federal Reserve Banks
or Branches on application 'therefor.
Tenders will be received without deposit from Incorporated banks and
trust companies and from,responsible and recognized dealers in investment securi
ties.
Tenders from others must be accomoanied by payment of 2 percent rf the face
amount of Treasury bills applied for, unless the tenders are accompanied bjr an
express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
TREASURY DEPARTMENT
P OR RELEASE,
Washington
Friday, February II, 1944>______ _
M O R N I N G NEWSPAPERS,
The Secretary of the Treasury, by this public-notice,
invites, tenders for $1,000,000,000, or thereabouts, of 91-daV
Treasury.bills, to be issued on a discount'basis under competi
tive and fixed-price bidding as hereinafter-provided*
The bills
of this series .will be dated•Februa: ■7- 17,
and will.mature
Kay 18, 1944, when the face-amount will be
' 1 payable without interest. They willbè issued in bearer form only, n d in denominations of §1,000, $5,000, $10,000, $100,000, I e ,000, and :
èl
lip JL . 000,000
(maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, two o ’clock p. rn., Eastern War
time, Monday, February 14, 1944.
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 deci
mals , e.. g., 9 9 f925.
Fractions may not be used.
It is urged
that tenders be made on the printed forms and forwarded in the
speciail. envelopes which will be supplied' by Federal Reserve
Banks or Branches on application therefor.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment of 2 percent of the face amount, of Treasury bills applied for, unless the tenders are accompanied by an
.express guaranty of payment by an incorporated bank or trust
.company.
*'
.. .;
- .;; -• ■
'Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which pub
lic announcement will be made by the Secretary of the Treasury
of the amount and^price range of accepted bids. Those sub
mitting tenders will be advised of the acceptance or rejection
thereof.
The 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.
Sub
ject to these reservations, tenders for $100,000 or less from
any 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 Bank
in cash or other immediately available funds on February 17.
1944♦
’
40-68
(Over )
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, Shall not
have any exemption, as such, and loss from the sale' or other
disposition of Treasury bills shall not have any special treat*
ment, as such, under Federal tax Acts now or hereafter enacted.
The bills shall be subject to estate, inheritance, gift, or
other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or
interest thereof by.any State, or any of the possessions of the
United States, or by any local taxing authority,
For purposes
of taxation the amount of discount at which Treasury bills are
originally sold by the United States shall be considered to be
interest*
Under Sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by Section 115 of the Revenue Act of
1941, the amount of discount at which bills issued hereunder are
sold shall not be considered to accrue until such bills shall be
sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance companies)
issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on
original issue or on subsequent purchasej and the ambunt actually
received either upon sale or redemption at maturity during the
■.taxable year for which the return is madej as ordinary gain or
loss •
:
Treasury Department Circular Ro. 418,' as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of'the circular may b e ’ob
tained from any Federal Reserve Bank or Branch.
-oOo-r
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING PAPERS,
Saturday, February 12, 1944.
Press Service
No. AO-69
The Secretary of the Treasury today called attention to the fact
that the subscription books for the three issues of marketable securi
ties will close, and the Fourth War Loan Drive will terminate, at the
close of business February 16.
These issues are the 2-l/2 percent
Treasury Bonds of 1965-70, the 2~l/4 percent Treasury Bonds of 1956-59
and the 7/6 percent Treasury Certificates of Indebtedness of Series
A-1945*
Sales of the threb issues of savings bonds, Series E, F and
G, and of Series C Savings Notes, will., of course, continue.
Subscriptions for the three issues of marketable securities which
are placed in the mail up to midnight of February 1 5 .will be treated
as timely subscriptions.
As previously announced, all subscriptions
for savings bonds and savings notes received at the Federal Reserve
Banks or at the Treasury of the United States up to the close of
business February 29 will be credited to the Drive,
o 0 o
TREASURY DEPARTMENT
Washikgton
FOR RELEASE, MORNING PAPERS.
Saturday, February 12. 19a A
Press Servioe
The Secretary of the Treasury today called attention to the fact
that the subscription books for the three issues of marketable securi
ties will close, and the Fourth War Loan Drive Will terminate, at the
close of business February 15.
These issues are the 2-1/2 percent
Treasury Bonds of 1965-70, the 2-I/a percent Treasury Bonds of 1956-59
and the 7/8 percent Treasury Certificates of Indebtedness of Series
A-19A5.
Sales of the three issues of savings bonds, Series E, F and
G, and of Series C Savings Notes, will, of course, continue.
Subscriptions for the three-issues of marketable securities which
are placed m
the mail up to midnight of February 15 will be treated
as timely subscriptions.
As previously announced, all subscriotions
for savings bonds and savings notes received at the Federal Reserve
Banks or at the Treasury of the United States up to the close of
business February 29 will be credited to the Drive,
o 0
0
TOR IMMEDIATE RSLTgASS
Tcbra^yy 15. 1944
The Bureau of Oust o b is announced today preliminary figures
showing the quantities of coffee authorised for entry for consuinp—
tion under the quotas for the 12 months commencing October 1, 1943,
provided for in the Inter—Anerican Coffee Agreement, proclaimed by
the President on April 15, 1941, as fellows:
*
:
Authorized for entry
Country of Production: Quota Quantity :
for consumption
0
i
(Pounds) 2j : As of
(Date) : (Pounds)
|
'■ 1
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Signatory Countries :
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40,013,490
2,909,675
69,114,21©
28,373,202
3,637,590
61,111,512
51,653,778
Teh. 5, 1944
n
R
8
R
R
R
R
R
R
R
R
R
R
R
344,232,017
200,551,017
4,059,446
2,717,071
4,583,941
13,299,493
18,114,926
22,529,026
9,049,637
1,543,625
23,217,959
1,585,754
1,051,782
16,051,988
3,203,490
*
2J
Quotas as established by action of the Inter-Anerican Coffee
Beard en January 12, 1944
oOe
\
TREASURY DEPARTMENT
Washington
EOR IMMEDIATE RELEASE,
Wednesday, February 16. 1944.
Press Service
^0# 4 0 -70
The Bureau of Customs announced today preliminaxy figures showing the
quantities of coffee authorized for entxy for consumption under the quotas
for the 12 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, a,s
follows i
Countiy of Production
i
9
9
Quota Quantity
(Pounds) 1/
:
Authorized for entry
:
for consumption
: As of
(Date) : (Pounds)
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Signatory Countries:
1/
1,353,183,480
458,336,340
29,100,720
11,640,288
17,418,104
21,825,540
87,302,160
77,844,426
40.013,490
2,909,675
69,114,210
28,373,202
3,637,590
61,111,512
51,653,778
Eeb. 5, 1944
11
it
it
11
tt
it
tt
tt
it
it
11
11
tt
tt
344,232,017
200,551,017
4,059,446
2,717,071
4,583,941
13,299,493
18,114,926.
22,529,026
9,049,637
1,543,625
23,217,959
1,585,754
1,051,782
16,051,988
3,203,490
Quotas as established by action of the Inter-American Coffee Board on
January 12, 1944.
0O0-
@FedFRASER