Full text of Press Releases of the United States Department of the Treasury : Volume 52

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TREASURY department

TREASURY DEPARTMENT
Washington
Press Service

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 15» 1944»____

' 1/

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 February 17 and
to mature May IS, 1944* which were offered on February 11, were opened at the Federal
Reserve Banks on February 14*
The details of this issue are as follows:
Total applied for - $2,314,407,000
Total accepted
- 1,012,222,000
Average price

(Includes $71,091,000 entered on a fixedprice basis at 99.905 and accepted in full)
- 99.905/ Equivalent rate of discount approx. 0,375% per annum

Range of accepted competitive bids:
- 99.910 Equivalent rate of discount approx. 0.356g per annum
n
- 99.905
*
«
«
n
h
0.376%
"
I
0.376g «

High
Low

(33 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

■I 64, 500,000

I

1 , 401 , 192,000
39.410.000
32 625.000
40.932.000
14.745.000
334,160,000
87.496.000
35.715.000
32 829.000

.

.

18 ,238,000

27.600.000
3 5 .623.000
14,678,000

141,863,000
36.777.000

25. 665.000
24, 320,000

136,375*000

8 , 712,000
69.040*000

$2,314,407,000

$1 ,012 ,222,000

14 , 340,000
TOTAL

28,810,000
580 ,896,000

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- NEWSPAPERS,
Tuesday, February 15 i 1944»

Press Service
No. 40-71

The Secretary of the Treasury ahnounced last evening that
the tenders for $1*000*000*000,

or thereabouts,

of 91-day Treas­

ury bills to be dated February 17 and to mature May 18, 1944,
which were offered on February 11, were opened at the Federal
Reserve Banks on February 14.
The details of this issue are as followss
Total applied for - $2,314,407*000
Total accepted
- 1,012,222,000 (Includes $71,091,000
entered on a fixed-price basis at 99*905 and accepted
in full)
Average price

- 9 9 i905/^Equivalent rate of discount apprcx*
0.375% per annum

Range of accepted competitive bidsi
High
Low

- 99.910
0.356^
- 99.905
0.376^

Equivalent rate of discount approx*
per annum
Equivalent rate of discount approx*
per annum

(33 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

136.375.000

28,810,000
580,896,000
18,238,000
27,600,000
35.623.000
14.678.000
141,863,000
36.777.000
25.665.000
24.320.000
8,712,000
69.040.000

$ 2 ,3 14 ,407,000

$1,012,222,000

64,588,000
1,481,192,000
39 , 410,000
32,625,000
4 0 932.000
1 4 745.000
334 160.000
87.496.000
35 715.000

.
..
.
3 2 .8 2 9 . 0 0 0
1 4 ,3 4 0 , 0 0 0
- 0O 0

A
TREASURY DEPARTMENT
FIS C A L SE R V IC E
BU REA U O F ACCOUNTS

WASHINGTON

O F F IC E O F TH E CO M M ISSIO N ER

February 7, 1944

During the month of January, 1944, the following
market transactions took place in direct and guaranteed
securities of the Governments
Sales ........................ $19,574,000
Purchases ............................ ................... ..

9 «650*000

Net sa le s • • • • • » • • • • • • • • • • • $ 9 »9£4 «QQS

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Tuesday, February 15, 1944 1

During the month of January,

Press Service
No. 40-70

1944, market

transactions in direct and guaranteed securi­
ties of the Government for Treasury invest­
ment and other accounts resulted in net sales
of $9,924,000, Secretary Morgenthau announced
today.

-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. 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.

1MM
-

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 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

February 24> 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 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, February 18. 1944
«

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
1 ...........
on a discount basis under competitive and fixed-price bidding as hereinafter provided.

The bills of this series will be dated
May 25

mature
interest,

T 9 M _____

February 24, 1944

,
and will
, and
w:

, 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

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 vfhich 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

TREASURY DEPARTMENT
Washington .

FOR RELEASE, MORNING- NEWSPAPERS,
Friday, February 13, 1944*_____
2-.17-44

The Secretary of the Treasury, by this public notice,
invites tenders for $1,000,000,000, or thereabouts, of .91-day
Treasury bills, to b e ’issued on a- discount basis under competi
tive and fixed-price bidding as hereinafter provided.
The
bills of this series will be dated February 24, 1944, and will
mature May 25, 1944, when :the face amount will be payable with
out interest.
They will be issued in bearer form only, and in
denominations of $1,000, $5,000, $10,000, $100,000, $500,000,
and $1,000,000 (maturity yalue).
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 21, 1944*
Tenders will not be re­
ceived at the Treasury Department, Washington.
Each tender
must be for a n ,even multiple of $1,000, and the price offered
must be expressed on the basis of 100, with.not more than
three decimals, e. g. , 99 •925 . Fractions may not be used.
It is urged that .tenders be’made on the printed forms and for­
warded in the special envelopes which will be supplied by
Federal Reserve Bànks or Branches on application therefor.
Tenders will ‘be received without deposit from incorpo­
rated 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 incorpo­
rated bank or trust company*
Immédiat ely after the closing hour, tenders will be
opened at the Federal Reserve Banks and Branches, following
which public announcement will be made by the Secretary of
the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance
or rejection thereof.
The Secretary of the Treasury ex­
pressly 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. Pay­
ment 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 24, 1944*
40-73

(O v e r )

-

2-

^ incame.ji.kr:i-veid-froin 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. prin­
cipal or interest thereof by any State, or any of the posses- .
•Sions of the United States, or by any local taxing authority.
For purposes of taxation the amount of discount at which Treas­
ury 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 thanlife 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 pur­
chase, 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 Uo. 418, as amended, and this
notice, prescribe the terms of the Treasury bills and govern the
conditions of their issue.
Copies of the circular may be
obtained from any Federal Reserve Bank or. Branch,

-oOo-

** 16 ■»

this miracle of planning, training and production didnft occur

in regimented Hazi Germany or in fanatical Japan.

It took place

right .here — * here in the ahrine of liberty,, here in. the great

free democracy of America.

You know, folks, it1® quite possible that thanks to all

you fine loyal people, and despite the fee much publicized and

properly-criticized mistakes, the American people and the American

Government are today doing the finest job any nation has aver done.

%$

& 1939 the Brited State* Merchant fleet represented 15 per cent

of the world % ®er<baot aarlae*

By the end of 1944» w

merchant

fleet will be larger than all the merchant fleet* of all other

nation* put together.
Since July 1940» we hare produced JO »9 billion pound* of small

&*m amudtlon*
last war.

Ibi© 1® ten time* our output during the entire

In m e same three end a half year period mere ha* been

delivered to the Array 1,400,000 truck*, 60,000 tank*» and 111,000

piece® of artillery and anti-aircraft gun®.
In mid 1940 cur ©bare in m e world»® production of combat

a n M s a t a was inelgnifleant. At the time of Pearl Harbor' it wa*
about on©~*lxth of the world production.

A year ago it was only

.about cme~iblrd*
today our production of combat armament® conatitute* nearly

one-half of the world output,

in other words* we alone are

producing almoet a* many planes, tank*, guns, sheila, aid ships a*

all the reat of the world put together ~~ allies and enemies alike.
fcA/\

0 “lAJ\ < ^ > \

Oar total aaiidtions output ha« fee©» inereased »early seren
fold a&nee Pearl iarfeor#

Oar output of n&lltary plane» saeasured

in terms of air fram© wet#it quadrupled fro® 1940 to *41*

®or© tfcan tripled

frm

tvom *42 to »43*

It

*41 to *42* and 1t Increased fey 2-1/2 times

F r m i M 1940 threugh 1943 over 150*000 s&Xltary

airplane« wer© produced.. fhey are now being produoed at a rate

exceeding 100*000 military plane« per year,

we produced 95 per cent m

Laet month* January 1944*

m m y plane« es ne produced in the «hole

year of 1941*
' In the o m m m t h of fwember 1943* the dellveries of Kami
eeaadle ©ateeeded the total d©liveries in the 24 aonths of 1940

and. 3941#

ly the ©ad of 1945 our fleet* ln tarne of tonnage* was

three and a half time« larger than it m « on 2uly 1* 1940*

teday thp Xargeat 8am& foroe in the world*
9

tone,

J)

/

Xt la

j

/ *, * f

¿V
ellveries of nerebajat vessela ln 1945 totaled 19*1/5 Million
fhie tosmage

prodaeed Sn on© year *— nearly equal« Sn eise

the total British pre-war fleet wfelch was the largest ln the world*

13 *

to vole» our belief la the way we should govern ourselves and conduct

m r own affaire#

Uhen the day comes that iacrlcti* do act criticise

America’s failures «id i&ortcoaings, we will be near the «*1 as a

free nation#

m d whenever our Government i s a H doing the best

possible job, I 1« for more sod louder popular criticism#

But there are a fee things I would like to tell you, not only

to correct your perspective, but to show you what the money you

have put into War Bonds has helped to accomplish.

Today we have in almost every war theater throughout the world

splendidly trained and superbly equipped armies.

Our air forces

are fighting In the skies over every front but one,

the largest

and most effective $avy in the world today flies the American flag#

The accomplishments of the American people in arming and

equipping this vast fighting force constitutes an achievement by

the combined efforts of Government, labor, and industry unequalled

When this game Is over and the sacrifice and the gallantry of

the tori can people have been recorded on the pages of history,

those few people who were» *t willing to do their fall share on the

home front are going to have a very empty feeling*

then they will

realise that they sold their birthright for black market pottage — •

that they lost their chance to get into the big game because th^r

thought they needed a new fur coat more than Uncle Sam needed the

loan of their dollars*

the black market food they ate, the black

market gas mid fuel they burned, and the non-essentials they

slandered their money on will see® pretty trivial when little

Willie asks »Daddy, what did you do in the War?*

that *s why

1 think they deserve pity,

thank God there are so

few of them, for I can see fro® your express!cm that there Isn't

going to be much pity to be divided among them.

In America today, popular criticism is rampant.

We criticise

this, that and the other, little things as well as big.

that's as

it should be.

the right

that's part of what we're fighting for —

n
In the heat of ear pa salons rise,

Jr

7

I can readily understand how

those/ ns who walk and rid# the husoes to sere gasoline feel toward

the man who chisels the gas we haw# sawed to talc# a long pleasure

drive.

I can readily understand how the housewife who has planned

and scrimped so that her fsadly can derive the maximum nutrition

from the family’s legal allotment of ration points feels toward the

person who contrives to wangle extra butter, or who buys meat in

the black market.

hatred.

Such m m savers beget contempt ~~ and sometimes,

I think they should also beget pity.

people do not deserve pity?

I do,

I m think those

let me tell you why.

We see in America today the greatest example of team play the

world has ever known. I t ’s one for all, and all for one, and every

man and woman worthy to be an American is glad and proud to forego

the petty luxuries and privileges of peacetime to be a member of

this great All-American team,

this war is the biggest game

America has ever had on it» schedule.

And we’re going to win this

game through the united effort of every man and woman on the team.

* 30

could not accept

mm

M m *

—

« * » the ii«©ratio**® » 4 ®

«eeeeeery by tli® esiei® of «ir and revolution#

the unyielding individual® *ho were

sympathy « M l what
ISfeo®# people

mr

m%

They war® the die-

of «top and out of

forefather® wasted#

m m kmmm

Ü M t r like aro known t o w «

to their follow «dtl®en® then* Juet a®
t o i l « certain that

m#

chtgler® and de~

featiei® of today will live to regret tbelr present day attitude*
Just a® lb©## Colonial foriae lived to regret their»*
too toüo aro hora tonight — * you m m have proved year loyalty

« 4 your single««®® of purpose — * .you aro not blind#

who at® against m

loo knew those

h m m m they aro only &®3f-»feoar^43y at®* uo*

t®u know the people m m ímúemtty or otherwise broadcast eoesf^

propaganda» «toe footer doubt and p ^ l s l

will to win.#

Too

and undemine the

whe bare bought your m r Bond® ®o

generously* ggj^ know ttoe neate of t e s t pitiful few who could hewe

bought more fond®, and máb% te toare bcmiiit m m

W m M $ and who

refused to bey thee# foe. too» atoo they ase, and you will m m m fo Q T *

:jp. Sis

to the service of the Ration and the welfare of all of It« people*

There Is another, more striking slmllartty between those days

of 1944 and the days of our American Revolution*

then, as now,

there were among us those who are luke-warm toward the kittle -*«*

luke-warm or worse,

country fs cause*

there were people who did not believe in our

there were people who were more afraid of fighting

our enemies ikan they were of losing to them,

they would rather

take a licking lying down than stand up to fight for their beliefs

and for the future of their land*

they fought against the Revolution)

a few cf them openly, many of the» secretly, some of them actually

with guns, many of them with the less honorable weapons of defeatism,

and all the half-isassures and delays and misrepresentation which

we know today as sabotage*

Back in 1776 those people were called Tories*

they were the

ones who did not want any change, because they were sitting pretty

themselves and didnft want to be disturbed*

they were the people

Wow,

respect —

m

then, we are fighting far » f freed©» «id oar self-

for the right t© govern ourselves, for the right to tax

ourselves for cur own purposes

for the right to live our own

lives, in our own way, in our own land*

today our M^v Hampshire men are fighting in the far Pacific
f: •

\

V

or on the battlefields of Italy side by side with fellow-Aisericans

from the deep South land from the far West —

just as in 1776 men

from all the thirteen colonies, from here clear down to Georgia,

fought and suffered and won victory together under George Washington*

We owe the very existence of our nation, to their unity, to the united

iffort of the farmers and the artisan# and the woodmen and the

little shopkeepers, to the strength and stamina and devotion of

all the common, decent, hard-working people*

And we owe & great deal

to the magnificent, unwavering leadership of a man who had the God-

given greatness to set aside the snobbery of patrician birth and

be deaf to the selfish urging» of his own large wealth, that he

might give every ounce of his strength and of his great ability

«ortby of mr ©oo and m m m la wdXvm io m m botior thaa tho boti
«o hav« y«t dm#*

X» tisi® mi* &« in orory w » tfai«i 1* a dout&o

standard ®t sacrifico* ftmtoror $mr tuo taso« mo boforo tisi m r ~~
E sth er ym ran a f illir g «tailcm, or ®o24 Itftak boti « 7

howror

l lt t l o gas you taro or h«r tmrd i t lo io got tatto ?t tbto m r feto
imposta 1«R8 tool wmrifim m a l 1 m o ftrU tm th«r* l i hao
imposta on any «ma of tho ta lli« « « of ««orioMi

and

io

Ita ai^ta sondo®«* tim i lo a dsmtlo oiataata of aaertfióo «•
suot ac&wmltago* I t io tho inoritabi« dlfforontlAl boim m ita
fIghting fremi and tbo fcw» fremi*

Bit % « r o io mota«? dotiti« standard «f «oorlfioo «blob «doto
«otlrtay o h tho barn# front, and «hieh 0« aocrnpt looo natalgr tornii««
it it m % lsovitohlo*

fimi ambio standard m a to frnnd la tho m y

tho | S rofbao to match tho «o*rifU» «f tho m m * Hcwrtr m e t

thlo angora ma today, wo « s i

li Imo over buon timo*

It

io no* ooarly ITO groar® «ino« Ooorgo waohington ita «or fighi toc for

frondoni*

lata yot io som® m

«oro tat yootovdagr*

it io ao if Ooorgo «ufelagtcn** ttoo

<w* b <•*

sacrificas to «al», mors dollars to saw, mors Bends to boy* I **
©omisi that 'Ibis splendid achievement which m aro wittat on the
books toolkit is not a flash in fee pen, but rather the first firn,
•purposeful step is your eared hors at home toward final and total

victory#
Ami because 1 ¡mm you so well, 1 predict sitò confidence that
sisen the Fifth tar Loan is ended — and the Sixth, and the Seventh
if they are needed **** there will meet in this City othar and even
larger gatherings of lee?!, self^saetificing laconta patriota who,
so long m their war lasts mod their country needs their help, will
b® prmá to lend their dollars in fesse further battles m fee hard
path to victory* ir* ^iei»a% Laconia has set fee ialine a
glorious example# loo have also established a local tradition#
iy guess tonight is feat, corns what may, laccala will have its
thousand Bollar lar Bond dinner» Just as often as Uncle & m needs
to run a War Bond drive.
May I suggest to you that fee least we civilian# can do to be

5

vtetory* We mm t go m fr cm Anal© to other baitlea, and s t i l l others*
Hie @nd is not in sight*
I t a l j 1© 37 6

Wrm Ansio to the northem frentier ©f

milos« läse wo get there m w ill s t i l l be

ij*

milea fro® ths beert of Dermany* Iss, mors ar# ssany battlas s t i l l
to be fonght feefor© thia war is ov©r and our mm can com# ham*
this is as nnplsasant for ®e to say as it is for you to hearf

bot 1 would b© lass th m honest if I did not remind yov thai tfee

invasiv ©f

begon»

won*.

&rop© and the cengaeat of Hast Q m m m f fear« barely

I ©eteit that it is not yet the time to dkmr for rlctoriea

Instead it is the tina for m

to redouble oar efforta and

etrengthee onr eoarage»

For o® her# at home there c m be no quitting until the war is

wen ~~ and no war ia ©rer won onttl the final battle bas ©nded.

too, bare more battlea to flght*

We,

Toni^it1# dimer 1« a worfchy

testimmlel to one splendid achievement.

But It is not tfc© end*

There will be more money to be raised, Jost as there are more battles

to be fousht.

/
there will be more war lease*' there will be more

•*» 4 *■'

You, ani millions mors like you, have proved again that we

who pride ourselves on miming our own lives and cur own Government

In our own way sun meet the unparalleled financial requirements of

the times by reaching our own hands down into our own pockets and

voluntarily lending our money to our Government#

Tes, here in Laconia in February 1944, you have dene a grand

job#

But in the enthusiasm of this moment, while we are celebrating

this current victory let us not lose si^it of the fact that this

Fourth lar Loan drive is only one battle *hich we have won in a

bitter

and continuing struggle#

tonight#

leu have every right to be proud

1 simply ask that tonight*® pride not blind tomorrow*s

perspective # ^ /

Today, the Iation*s eyes are riveted on the beachhead at inaio,

and I sometimes wonder if a lot of people don*t think inaio is the

crucial battle of the war*

Our m m are fighting a fine fight there#

I believe they will win it, and free Home*

But Ansio is just one

of hundreds of other battles we must fight and win before we achieve

/

m %m

dinner who Is her© for a free feed*

distinguished company*

I want to pay «ay way into this

So I ask you to accept this check to purchase

a thousand dollar far Bond for mej and I request that this #750 be

added to the already generous amount by which taeonia has over­

subscribed its quota*

/
ladies and gentlemen, it is altogether natural and right for

you to feel proud of the accomplishment which we celebrate tonight.

It is a triumph for every one of you personally*

It brings the

warmth of a good'deed well done* of sacrifices generously made in

a worthy cause*

It is the crowning of the individual efforts of

Dr* Smart, Mr* Kelley, Eddie Gallagher, Mr* Hensley, Jim Irvin,
Mr* Martin, and the other men and woman #10 have organized this

outstanding success*

But to me it seems to have in a broader sense an even more heart­

lifting significance*

For it demonstrates still again that in this

democracy of ours there is the will, and the courage, and the

virility to finance the greatest of all wars in the democratic way

2

sales to individuals*

So I wish to thank not just this «radiano# brat

everyone in this community who has purchased an extra War Bond during

this driv#| however^: emal^ that Bond ©ay have been

large as he eouM afford to buy*

is a dramatisation of Democracy*

if it was as

fee gathering in this room tonight
■/
■
/
1 see before me

hundred men

and women, everyone of whom represents the purchase of a really big

Bond —

a thousand dollar Bond, a substantial investment in the

security and freedom that is America*

feat speaks unmistakably of

the character and qualities which we know have made Hew Hampshire

great —

the things that are literally bred in our bones. / It speaks

of the hard work that earned those thousands of dollarsj of the solid

New mglànd thrift that saved themj and of the American shrewdness

that is now investing those dollars in War Bonds, the world*s

finest securities*

Mr. Chairman, X know how every man and woman present has earned

the right to be here on this festive occasion*

I hope you know me

well enough to realise that I am not going to be the only one at this

/

/

Mayor Smith, Governor Blood, follow men and women of Hew

Hampshire*

Wo are gathered here tonight for a double purpose.

We meet to

honor the birthday of George Washington, the Father of this great

Hation.

tonight we also celebrate victory here in Laconia, New

Hampshire, victory in another battle in the long fight to keep

inviolate the freedom and the independence of the K&tion he founded.

I am happy to be here in my capacity as Assistant Secretary of

the United States Treasury in official recognition of Laconia *e

accomplishment in the Fourth War Loan drive, and to bring you. the

thanks of the Treasury and the congratulations and gratitude of the

Nation*

As a New Hampshire man, I am personally gratified to share

the just pride you feel in your achievement.

it.

Make no mistake about

the most important part of every War Bond drive is the amount of

(T he f o llo w in g a d d r e s s by Joh n L . S u l l i v a n , A s s i s t a n t S e c r e t a r y
o f th e T r e a s u r y , b e f o r e th e $ 1 0 0 0 Bond D in n e r a t
L a c o n i a , New H am p sh ire , o v e r s t a t i o n WLMH, Lu..... ..

th e T a v e r n ,
is

s c h e d u le d f o r d e l i v e r y a t 8 p«m« EWT, T u e s d a y , F e b ru a r y 2 2
1 9 4 4 , and i s

f o r r e l e a s e a t t h a t tim e » )

,

. S ' % ft

c

\

congratulate the people of the city of Laconia,

on the contribution this community has made to ear

production*

The employees of the Scott and Williams Company have

increased production more than five hundred and sixty percent

1939*

since

The superchargers, regulators, air pomps, mixture controls,

de-icers and hydraulic pumps made right here in this city are today

essential parts of war planes flying and fighting all over the world.

When this war is over, and the story can be told, the people of

Laconia will be proud of the number of flyers lives which have been

saved and air combats that have been won thanks to a certain secret

device manufactured right here in this city*

As you all know,the fcund Ski Plant is furnishing very large

quantities of Northland skis and ski equipment for the Array*

Belknap Hosiery Mills are supplying the Arsy with socks.

The

The Tekwood

Company is turning out vast quantities of plywood for military purposes.

The way in which Laconia has responded to the nation *s call for a total
effort to win a total war is an inspiration to every New Hampshire roan
and woman

TREASURY DEPARTMENT
Washington

(The following address by John L. Sullivan, Assistant Secretaiy of
the Treasury, "before the Thousand Dollar Bond Dinner at the Tavern,
Laconia, New Hampshire, over Station WLMH, is scheduled for delivery
at 8 pi M., Eastern War Time. Tuesday. February 23, 1944. and is for
release at that time.)

Mayor Smith, Governor Blood, fellow men and women of New Hampshire:
We are gathered here tonight for a double purpose.
We meet to
honor the birthday of George Washington, the Father of this great
Nation. Tonight we also celebrate victory here in Laconia, New
Hampshire, victory in another battle in the long fight to keep in­
violate the freedom and the independence of the Nation he founded.
I am happy to be here in my capacity as Assistant Secretaiy of
the United States Treasury in official recognition of Laconia’s ac­
complishment in the Fourth War Loan drive, and to bring you the thanks
of the Treasury and the congratulations and gratitude of the Nation.
As a New Hampshire man, I am personally gratified to share the
just pride you feel in your achievement. Make no mistake about it>
The most important part of every War Bond drive is the amount of sales
to individuals. So I wish to thank not just this audience but everyone
in this community who has purchased an extra War Bond during this drive,
however small that Bond may have been — if it was as large as he could
afford to buy. The gathering in this room tonight is a dramatization of
Democracy.
I see before me 300 men and women, everyone of whom repre­
sents the purchase of a really big Bond — a thousand dollar Bond,
a substantial, investment in the security and freedom that is America.
That speaks unmistakably of the character and qualities which we know
have made New Hampshire great — the things that are literally bred in
our bones. It speaks of the hard work that earned those thousands of
dollars; of the solid New England thrift that saved them; and of the
American shrewdness that is now investing those dollars in War Bonds,
the world’s finest securities.
Mr. Chairman, I know how every man and woman present has earned
the right to be here on this festive occasion.
I hope you know me well
enough to realize that I am not going to be the only one at this dinner
who is here for a free feed. I want to pay my way into this distin­
guished company.
So I ask you to accept this check tp purchase a thousand
dollar War Bond for me; and I request that this $750 be added to the al­
ready generous amount by which Laconia has over-subscribed its quota.

40-74

- 2 Ladies and gentlemen, it is altogether natural and right for you
to feel proud of the accomplishment which we celebrate tonight. It is
a triumph for every one of you personally.
It brings the warmth of
a good deed well done; of sacrifices generously made in a worthy cause.
It is the crowning of the individual efforts of Dr. Smart, Mr. Kelley,
Eddie Gallagher, Mr. Hansley, Jim Irvin, Mr. Martin, and the other
men and women who have organized this outstanding Success.
But to me it seems to
lifting significance. For
democracy of ours there is
to finance the greatest of

have in a broader sense an even more heart­
it demonstrates still again that in this
the;will, and the courage, and the Virility
all wars in the democratic way.

You, and millions more like you, have proved again that we who
pride ourselves on running our own lives and our own Government in our
own way can meet the unparalleled financial requirements of the times
by reaching our own hands down into our own pockets and voluntarily
lending our money to our Government.
Yes, here in Laconia in February 1944, you have done a grand job.
But in the enthusiasm of this moment, while we are celebrating this
current victory let ue not lose sight of the fact that this Fourth War
Loan drive is only one battle which we have won in a bitter and con­
tinuing struggle. You have evexy right to be proud tonight.
I simply
ask that tonight's pride not blind tomdrrow*s perspective.
Today, the Nation's eyes are riveted on the beachhead at Anzio,
and I sometimes wonder if a lot of people don’t think Anzio is the
crucial battle of the war. Our men are fighting a fine fight there.
I believe they will win it, and free Rome. But Anzio is just one of
hundreds of other battles we must fight and win before we achieve
victory. We must go on from Anzio to other battles, and still others.
The end is not in sight. .From Anzio to the northern frontier of Italy
is 375 miles. When we get there we will still be 400 miles from the
heart of Germany. Yes, there are many battles still to be fought before
this war is over and our men can come home.
This is as unpleasant for me to say as it is for you to hear, but
I would be less than honest if I did not remind you that the invasion
of Europe and the conquest of Nazi Germany have barely begun.
I submit
that it is not yet the time to cheer for victories won. Instead it is
the time for us to redouble our efforts and strengthen our courage.
For us here at home there can be no quitting until the war is won — *
and no war is ever won until the final battle has ended. We, too, have
more battles to fight. Tonight’s dinner is a worthy testimonial to one
splendid achievement. But it is not the end. There will be more money
to be raised, just as there are more battles to be fought. There will be
more war loans. There will be more sacrifices to make, more dollars to
save, more Bonds to buy.
I am certain that this splendid achievement
which we are writing on the books tonight is not a flash in the pan,
but rather the first firm, purposeful step in your march here at home
toward final and total victory.

3
And because I know .you so well, X predict with confidence that
when the Fifth War Loan is ended — and the Sixth, and the Seventh
if they are n e e d e d — there will meet in this City other and even
larger gatherings of loyal, self-sacrificing Laconia patriots who,
so long as their war lasts and their country needs their help, will
be proud to lend their dollars in these further battles on the hard
path to victory. Mr. Chairman, Laconia has set the Nation a glorious
example. You have also established a local tradition.
guess to­
night is that, come what may, Laconia will have its Thousand Dollar
War Bond dinners just as often as Uncle Sam needs to run a War Bond
drive.
May I suggest to You that the least we civilians can do to be
worthy of our men and women in uniform is even better than the best
we have yet done.
In this war as in every war, there is a double
standard of sacrifice. Whatever your business was before the war —
whether you ran a filling station, or sold Nylon hosiery — however
little gas you have or how hard it is to get butter, this war has
imposed less real sacrifice on all us civilians than it has imposed
on any one of the millions of American men and women in the armed
services. That is a double standard of sacrifice we must acknowledge.
It is the inevitable differential between the fighting front and the
home front.
But there is another double standard of sacrifice which exists
entirely on the home front, and which we accept less readily because
it is rot inevitable. That double standard can be found in the way
the few refuse to match the sacrifice of the many. However much this
angers us today, we must remember it has ever been thus'. It is now
nearly 170 years since George Washington led our fight for freedom.
And yet in some way it is as if George Washington's time were but
yesterday.
Now, as then, we are fighting for our freedom and our self-respect -~
for the right to govern ourselves, for the right to tax ourselves for
our own purposes — for the right to live our own lives, in our own way,
in our own land.
Today our New Hampshire men are fighting in the far Pacific or on
the battlefields of Italy side by side with fellow-Americans from the
deep South and from the far West — just as in 1776 men from all the
thirteen colonies, from here clear down to Georgia, fought and suffered
and won victory together under George Washington. We owe the very ex­
istence of our nation to their unity, to the united effort of the farmers
and the artisans and the woodsmen and the little shopkeepers, to the
strength and stamina and devotion of all the common, decent, hard­
working people. And we owe a great deal to the magnificent, unwavering
leadership of a man who had the God—given greatness to set aside the
snobbery of patrician birth and be deaf to the selfish urgings of his
own large wealth, that he might give every ounce of his strength and of
his great ability to the service of the Nation and the welfare of all
of its people.

- 4 There is another, more striking similarity between these days
of 1944 and the days of our American Revolution. Then, as now, there
were among us those who were luke-warm toward the battle — luke-warm
or worse. There were people who did not believe in our countiy's
cause. There were people who were more afraid of fighting our enemies
than they were of losing to them. They would rather take a licking
lying down than stand up to fight for their beliefs and for the future
of their land. They fought against the Revolution; a few of them
openly, many of them secretly, some of them actually with guns, many
of them with the less honorable weapons of defeatism, and all the half­
measures and delays and misrepresentation which we know today as
sabotage.
Back in 1776 those people were called Tories. They were the ones
who did not want any change, because they were sitting pretty themselves
and didn11 want to be disturbed. They were the people who could not ac­
cept new things
even the innovations made necessary by the crisis of
war and revolution. They were the die-hards, the unyielding individuals
who were out of step and out of sympathy with what our forefathers wanted.
Those people were known to their fellow citizens then, just as
their like are known to us. And I am certain that our chiselers and de­
featists of today will live to regret their present day attitude, just
as those Colonial Tories lived to regret theirs.
You who are here tonight w you who have proved your loyalty and
your singleness of purpose — you are not blind. You know those who are
against us because they are only half-heartedly with us. You know the
people who innocently or otherwise broadcast enemy propaganda, who
foster doubt and confusion, and undermine the nation1s will to win. You
yourselves who have bought your War Bonds so generously, you know the
names of those pitiful few who could have bought more Bonds, and ought
to have bought more Bonds, and who refused to buy them. You know who
they are, and you will remember.
In the heat of war passions rise.
I can readily understand how
those of us who walk and ride the busses to save gasoline feel toward
the man who chisels the gas we have saved to take a long pleasure drive.
I can readily understand how the housewife who has planned and scrimped
so that her family can derive the maximum nutrition from the family's
legal allotment of ration points feels toward the person who contrives
to wangle extra butter, or who buys meat in the black market. Such
manoeuvers beget contempt — and sometimes, hatred.
I think they
should also beget pity. You think tho'se people do not deserve pity*?
I do. Let me tell you why.
We see in America today the greatest example of team play the world
has ever known.
It's one for all, and all for one, and evepy man and
woman worthy to be an American is glad and proud to forego the petty
luxuries and privileges of peacetime to be a member of this great AllAmerican team. This war is the biggest game America has ever had on
its schedule. And we're going to win this game through the united
effort of every man and woman on the team.

- 5 When this game is over and the sacrifice and the gallantry of
the American people have been recorded on the pages of history, those
few people who weren’t willing to do their full share on the home front
are going to have a very empty feeling. Then they will realize that
they sold their birthright for "black market pottage — that they lost
their chance to get into the "big game because they thought they needed
a new fur coat more than Uncle Sam needed the loan of their dollars.
The black market food they ate, the black market gas and fuel they
burned, and the non-essentials they squandered their money on will
seem pretty trivial when little Willie asks 11Paddy, what did you do
in the War?”
That’s why I think they deserve pity. Thank God there are so few
of them, for I can see from your expression that there isn’t going to
be much pity to be divided among them,
In America today, popular criticism is rampant. We criticize
this, that and the other, little things as well as big. That's as it
should be. That’s part of what we're fighting for -- the right to
voice our belief in the way we should govern ourselves and conduct our
own affairs. When the day comes that Americans do not criticize
America’s failures and shortcomings* we will be near.the end as a free
nation. And whenever our Government isn’t doing the best possible job,
I'm for more and louder popular criticism.
But there are a few things I would like to tell you, not only to
correct your perspective, but to show you what the money you have put
into War Bonds has helped to accomplish.
Today we have in almost every war theater throughout the world
splendidly trained and superbly equipped armies. Our air forces are
fighting in the skies over every front but one. The largest and most
effective Havy in the world today flies the American flag.
The accomplishments of the American people in arming and eauipping
this vast fighting force constitutes an achievement by the combined
efforts of Government, labor, and industry unequalled in the history
of the world. We must remember that the production of combat armament
is the very foundation of all military plans.
In this day of almost
complete mechanisation of the armed forces, victory on the battlefield
depends, to a greater extent than ever before, upon the munitions pro­
duced by the home front.
Our total munitions output has been increased nearly seven fold
since Pearl Harbor. Our output of military planes measured in terms of
air frame weight quadrupled from 1940 to ’41,
It more than tripled
from '41 to ’42, and it increased by 2-1/2 times from ’42 to ’43.
Prom mid 1940 through 1943 over 150,000 military airplanes were pro­
duced. They are now being produced at a rate exceeding 100,000 military
planes per year. Last month, January 1944, we produced 95 per cent as
many planes as we produced in the whole year -of 1941,

6

In the one month of November 1943, the deliveries of Naval
vessels exceeded the total deliveries in the 24 months of 1940 and
1941. By the end of 1943 our fleet, in terms of tonnage, was three
and a half times larger than it was on July 1, 1940, It is today
the largest Naval force in the world.
For the last six months we have been delivering between five
and six merchant ships a day. The deliveries of merchant vessels in
1943 totaled 19-1/3 million tons. This tonnage — produced in one
year — nearly eouals in size the total British pre-war fleet which
was the largest in the world.
In 1939 the United States Merchant
Fleet represented 15 per cent of the world's merchant marine. By the
end of 1944, our merchant fleet will be larger than all the merchantfleets of all other nations put together.
Since July 1940, we have produced 30.7 billion pounds of small
arms ammunition. This is ten times our output during the entire last
war. In the same three and a half year period there has been de­
livered to the Army 1,400,000 trucks, 60,000 tanks, and 111,000 pieces
of artillery and anti-aircraft guns.
In mid 194Q our share in the world’s production of combat armaments
was insignificant. At the time of Pearl Harbor it was about one-sixth
of the world production. A year ago it ivas only about one-third.
Today our production of combat armaments constitutes nearly onehalf of the world output. In other words, we alone are producing
almost as many planes, tanks, guns, shells, and ships as all the rest
of the world put together — allies and enemies alike. This remarkable
accomplishment has not only astonished the world, but has far surpassed
our own most optimistic expectations.
This miracle of planning, training and production didn't occur
in regimented Nazi Germany or in fanatical Japan.
It took place right
here — here in the shrine of Liberty, here in the great free democracy
of .America.
You know, folks, it's quite possible that, thanks to all you fine
loyal people, and despite the few much publicized and properlycriticized mistakes, the .American people and the American Government
are today doing the finest job any nation has ever done.

oOo

19

We will call upon expert and efficient business men
in every line for advice; and even draft them into
our Surplus Property sales organization for their
experience and knowledge.
This again is a matter of teamwork.

If we all

work together it cannot help but be successful.

And

success can mean for all of us a greater measure of
happiness and well-being in a world once more at peace.
From my knowledge of you, and from the record
which you as individuals, and as an Association have
hung up during this war, I know that the nation can
continue to count upon you, without question and without
reservation, for an overflowing measure of patriotic
and loyal assistance.

- 18 -

k/

/We expect to market our merchandise through regular
business channels.

We will offer our morohandi-yc in

lots small enough so that the operator of modest size
will be able to buy in free competition with the largest
concerns. We expect to protect established business
houses from unfair upstart competition.

We expect to

assure them of legitimate profits for handling surplus
merchandise.

And at the same time we expect to assure

the purchaser of good values in everything he buys from
us.

There is no slightest disposition on our part to
create a government-owned or controlled sales agency
to compete with private business.
In a thousand ways we will avail ourselves of the
help of professional and trade associations'such as yours.

w

H

- I? -

II

quantitites of most of those lines to sell, also.

So

you can understand that I am doubly happy that you
~wJt-

have taken me into your'Association and made a fullJr

pledged pharmfteouti

■
qjP top — for we shall be

doing a lot of business together* ywu 'and "'iy
ftVfiry

have

.mi, 11 h-A-pT’qfi

•I can not tell you yet any details of how w
A

*

oho^ld opti1atu tbr Surplus War Property Administration
But I can tell you now that the task will be undertaken
with the object of selling our surpluses in such a
manner, and at such a time that the established business
of the country will be strengthened rather than undermined.

Now, as I said, we are being given the
responsibility of doing the worlds biggest joB$*
/K
A
r-fitsLU^wr^d-rng.

Au Auuio Li g r AecrTTarf "OT" t l T “fre&sury

Among the billions of dollars worth of property
we will be called upon to sell will undoubtedly be
millions of dollars worth of drugs and other pharmaceutical
supplies and equipment.

*

^Also I have heard from time to time hints and
/

I

I

whispers that sometimes some pharmacies do sell, now and
then, a few other lines of merchandise which are not
strictly pharmApal.

Undoubtedly we will have large

. ; v £a + .
lob.
That is because few people
be selected for that job

realize that our Procurement Division is one of the
biggest buyers of merchandise in the world*

We handle
/D vmo

'4yli0i
m3"U"PPtt different kinds of articles.

;s• We buy whatever is
needed for the operation of every department and bureau
and commission of the government.
A>

.

AV,

¡A

* fv

.prr|rmn±aj— io.

“Rs^buck,

U /«?H

waHjjflgs purchases
v J U ^

U - ^ 4

of pharmaceutical supplies have amounted to $ 2 ? 1
So you see, the Treasury does have some considerable
knowledge of merchandise and the ways of the merchant in
general, and of the pharmaceutical field in particular

<

and unconsumed by the war• We must dispose of these
surpluses without injuring our pses.aftti.
Mbucin®'

being in our country after the war.

solution of this problem of

tub*3

surplus goods,

Sat^day Ts papers carried the announcement that the
President hatì)

created the Surplus War Products

Administration.

Under the Presidents order a member

,

of the Treasury Department will be on the Coumirl of'
this new agency, and the Treasury1s Procurement Division
is.charged with the duty of selling all Governmen"Unowned
surpluses of <

?

.

consumer^ goods^ I imagine

that many of you are wondering why the Treasury should

13 I do not ask any man to forbear from criticizing when
he sees something wrong*

But I do ask every man for

his help to make the war effort of our nation an
unbeatable piece of teamwork on the part of every person
and every group in the nation*
LJl j k

’x / Z S

suggested to me that you might like
to have me discuss the question of the nation’s postwar
x

economy.0“ This is of course a tremendous subject and one
$0

which will affect the life and well-being of every one.
of us*

I believe that it lies within our power to see

that out of this war comes a fuller life for the people
of America*

There is no reason why victory should not

lead to »¿B+l^nefits for us individually and as a nation.
One of the most pressing problems will be the
distribution of surpluses created by our war production,

12
any human activity.
has made others.

-

Government has made some.

Industry

But most of us are content to judge

by results, and to temper our criticsm with the
acknowledgment of great deeds greatly done.

A man

whose football team has won a victory for him, accepts
that victory with gratitude.

He does not complain that

the quarterback called two or three questionable plays
He does not grouse because the game was won
by one touchdown instead of three.
I make you an earnest plea for an understanding of
the vast problems that the government must meet and of
the tremendous and close decisions which the government
must make in its share of the prosecution of this war.

11

them across the ocean*

-

Our planes and our Allies*

control the worldfs skies*
seven seas.

Our ships control the

We have driven our enemies out of Africa

and out of the Solomons and we are pressing in toward
their homelands with irresistapie force.
All of this is a tremendous achievement.

It shows

what a great nation can do when it is aroused -- and
when it is united.

For neither government, nor industry,

nor individuals, nor management, nor labor could have
done these things alone.

This is a matter of team
W-i.

work.
h*.c

This is the greatest

tfe'Crt" has

o u n t r y * , and we are winning it because
V

>we are all playing the game togetherr There have been
mistakes made, of course, as there always will be in

10

-

Everjrone of us can be proud of the job our
democracy has done.

In a few short months we transformed

ourselves from a nation at peace to a nation concentrated
on winning a war.

In a year and a half, from a standing

start, we were producing more of the guns and planes
and tanks and ships which win modern wars than all our
enemies combined — in spite of the ten years start they
had pn us.

£oday American industries and American labor

and American management working as an All-Aae rican team
are producing as much war material as all of our enemies
and all of our Allies combined.
We have organized, armed, equipped and trained an
army

iillion of the finest fighting men the world

has ever seen.

We have transporter aSEEW million of

- 9 -

We have thrilled recently to the great fight
that our men have made on the beachhead below Rome.
They will win that fight, and they will win Rome.
Eut beyond that battle there are hundreds of more
battles that must be fought.
4-p p -p e

11n,

Our timn of b'iswd and

j n ■1 11 1n MlU III

It is still a long^dreary and dangerous road
to Berlin and Tokio.

There are still ■ L

battles to be fought in Asia and Europe.

of
There are

still billions of Bonds to be bought in America.
This is no time for the cheers of victory.

Instead,

it is a time to dedicate ourselves anew to the grim
task which is still ahead of us.
side of the picture.

That is the dark

But there is alight side too.

¡

1

be out in many ways, lour taxes »ill be high,
the demands upon you fop public service will
Increase rather than decrease. But I know that
you will face all these conditions and meet all
these demands with the same good will and the
same spirit of high patriotism that you have shown
in the past and are showing today. What I am
trying to impress upon you is that this war is
not over and not nearly over, la have just begun
to be in a position to win it. !e have just begun
to get back some of the things we had lost. We
have pushed the Japs out of the Solomons end the
Germans out of Africa. But we are still thousands
of miles from Tokio and long hundreds of tough
bloody miles from Berlin.

And.I want especially to impress upon you the
necessity for keeping up your good works.
not he easy.

Although

12 -1/2 %

It will

of you —

one pharmacist out of eight — are already serving
in the armed services, you will undoubtedly be even VTUnjl
short-handed in the days to come.

You will be

even w#&e overworked than you are today in meeting
the vital needs of civilian practice.

You will be

without many of the drugs and other merchandise
which you

Your

i "ftt,U1UL

U jJ J J g rtU ld fc in i) * ¿ 1 1

-

6

-

merchants mobilize their over-the-counter influence
on our behalf.
I could go on and enumerate many more services
which you have rendered and are rendering every day
to your country; such as the 2 , 0 0 0 drug stores which
have become issuing agents for War Bonds.

Although

I am far away, and reasonably busy vq»th-the

v

all collectij»»»*«eft»4«4^
I still know
what you have been doing, and with what distinction
and patriotism you have been bearing your part in the
Nation*s united effort.

I want to tell you here today

that your work is known, and is appreciated.

It is off to you again for the record you have
made in the nation-wide sale of War Stamps and Bonds,
Led-§0Kby editor John MePherrin of The American
• fir s t

Druggist, you were the retail industry in the country
to put on your own individual drive for the sale of
War Stamps,

feu*- campaign

sold more than

$7,000,000 worth of War Stamps,* This was a real
inspiration for perhaps more than any other group, you
)

come in close and frequent contact with the people of
our country.

W K S sOoqaa ikjA'JyMsrjwJL ;
Sfe ^rou are in an unrivaled position to

sell War Bonds ttettoa; and you have lived up fully
to that opportunity.
I want to tell you that the Treasury fully
appreciates what a tremendous fund-raising power is
represented when 60,000 leading citizens and trained

X don't know whether you realize to what
tremendous proportions this drug pool grew.

I have

been informed that the all-important quinine made
available to our boys amounted to many tonsJ

It was

collected by voluntarily contributions from s tocks in
the hands of Pharmacists and Pharmaceutical houses all
over the country.

A great gift from a great bunch of

Not only did New Hampshire'start this movement,
nTH

but our State, relatively small as it

is, contributed 262,400 doses of this vital drug as our
own personal donation.

There is many a man alive today

who, although he may not know it, will owe life and
health for years to come to you gentlemen in this
room.

My hat is off to you for that.

I

- 3 -

I know that Secretary Knox would he first to
| ■ ■ ■

support me when
jnrlmtry iri

t

say" I

(TVs,

no fHipr ■
ar.t-o.L.-a.
ny

irnr thrm the action of your national

organization in collecting a great stock-pile of quinine
for the use of our men in service.

That deed will mean

the difference between life and death, between good
health and chronic illness, to thousands upon thousands
of our sailors, marines and soldiers who must live and
%

fight in the malarial jungles of the South Pacific.
This is a piece of practical patriotism which cannot
be praised too highly.

We can all be proud trial W e

i^upir align fag this collection of a national stockpile of essential drugs.caafr-fr&n. our own George MoultonV

A

*¿X

„

Wv.

and 'We

gai'llzed "rfil&tft his~ac1

*

2

-

selected a New Hampshire man to he its president in
these most critical days.

The American Pharmaceutical

Association has honored itself and done itself a good
turn by selecting George A. Moulton as its executive
head.
Most sincerely I want to tell you how much
I appreciate the compliment you have paid me in making
me an honorary member of your Association.
I am doubly flattered, because I understand this
is an honor which you have bestowed

nnly nnr Hflior

per sou, ted J[t means all the more to me that thJSL. ^
our distinguished fellow New Hampshire
man and my very dear friend, our great Secretary of
the Navy, Frank Knox.

NEW HAMPSHIRE PHARMACEUTICAL ASSN.j FEB. 24, 1944

A

I hope that all the rest of you Pharmacists, are
enjoying this one annual meeting of ,ours as much as
I am.

It was a fine thing for you to heed the

Government!s request to cut down traveling by giving
up your Fall meeting and concentrating on this one
February event.

This is in keeping with wartime

economy and I think it entitles you to enjoy a good big
dose of relaxation tonight.
It is mighty easy for a New Hampshire man to be
proud of New Hampshire.

But I think we can be permitted

an extra measure of pride for the leading role which
our Association is playing in w*r country.

Certainly

it is a high, testimonial that your national body has

(The following address by John L. Sullivan, Assistant
Secretary of the Treasury, before the New Hampshire
Pharmaceutical Association at the Eagle Hotel, Concord,
New Hampshire is scheduled for delivery at 8.00 P»M« ,
E.W.T« February 2A. 1944. and is for release at that time.)

TREASUET DEPARTMENT
; Washington

(The following address by John I. Sullivan, Assistant Secretary
of the Treasury, before the New Hampshire Pharmaceutical
Association at the Eagle Hotel, Concord, New Hampshire, is
scheduled for delivery at 8;Q0 P. M., Eastern War Time.
February 24,1944, and is for release at that time,)

I
hope that all the rest of you Pharmacists are enjoying this
one annual meeting of ours as much as X am.
It was a fine thing for
you to heed the Government1s request to cut down traveling by giving
up your Fall meeting and concentrating on this one February event.
This is in keeping with wartime economy and I think it entitles you
to enjoy a good big dose of relaxation tonight.
It is mighty easy for a New Hampshire man to be proud of
New Hampshire. But I think we can be permitted an. extra measure
of pride for the leading role which our Association is playing in
the country.
Certainly it is a high testimonial that your national
body has selected a New Hampshire man to be its president in these
most critical days. The American Pharmaceutical Association has
honored itself and done itself ,a good turn by selecting George A.
Moulton as its executive head.
Most sincerely I want to tell you how much X appreciate the
compliment you have paid me in making me an honorary member of your
Association.
I am doubly flattered, because I understand this is an honor which
you have rarely bestowed.
It means all the more to me that the last
recipient of this award is our distinguished fellow New Hampshire man
and my very dear friend, our great Secretary of the Navy, Frank Knox.
I know that Secretaiy Knox would be first to support me when
I compliment you on the action of your national organization in col­
lecting a great stock-pile of quinine for the use of our men in
service. That deed will mean the difference between life and death,
between good health and chronic illness, to thousands upon thousands
of our sailors, marines and soldiers who must live and fight in the
malarial jungles of the South Pacific. This is a piece of practical
patriotism which cannot be praised tqo highly, We can all be proud
of this collection of a national stock-pile of essential drugs, and
the part our own George Moulton played in organizing it.

40-75

i

- 2 -

,

I don’t know whether yon realize to what tremendous proportions
this drug pool grew.
I have been informed that the all-important
quinine made available to our boys amounted to many tons.1 It was
collected by voluntary contributions from stocks in the hands of
Pharmacists and Pharmaceutical houses all over the country. A great
gift from a great bunch of men.'
Not only did New Hampshire help start this movement, hot our
State, relatively small as it is, contributed 262,400 doses of this
vital drug as our own personal donation. There is many a man alive
today who, although he may not know it, will owe life and health for
years to come to you gentlemen in this room. M y hat is off to you
for that.
It is off to you again for the record you have made in the
nation-wide sale of War Stamps and Bonds. Led by editor John
McPherrin of The American Druggist, you were the first retail in­
dustry in the country to put on your own individual drive for the
sale of War Stamps. That campaign sold more than $7,000,000 worth
of War Stamps, This was a real inspiration, for perhaps more than
any other group, you come in close and frequent contact with the
people of our country. Since that early campaign all druggists have
worked with their local War Finance Committees and worked effectively.
You are in an unrivaled position to sell War Bonds; and you have lived
up fully to that opportunity.
I want to tell you that the Treasury fully appreciates what
a tremendous fund-raising power is represented when 60,000 leading
citizens and trained merchants mobilize their over-the-counter influenc e on our b ehalf,
I could go on and enumerate many more services which you have
rendered and are rendering every day to your country, such as the
2,000 drug stores which have become issuing agents for War Bonds.
Although X am far away, and reasonably busy, I still know what you
have been doing, and with what distinction and patriotism you have
been bearing your part in the Nation's united effort.
I want to tell
you here today that your work is known, and is appreciated.
And I want especially to impress upon you the necessity for
keeping up your good works.
It will not be easy. Although 12-1/2$
of you — one pharmacist out of eight — are already serving in the
armed services, you will undoubtedly be even more shorthanded in
the days to come. You will be even more overworked than you are
today in meeting the vital needs of civilian practice. You will be
without many of the drugs and other merchandise which you ordinarily
carry. Your taxes will be high, The demands upon you for public
service will increase rather than decrease. But I know that you will
face all these conditions and meet all these demands with the same
good will and the same spirit of high patriotism that you have shown
in the past and are showing today.

- 3 ^ha.t I am trying to impress upon you is that this war is not
over, and not nearly over. We have just "begun to get hack some of
the things we had lost. We have pushed the Japs out of the Solomons,
and the Germans out of Africa. But we are still thousands of miles
from Tokio and hundreds of miles from Berlin.
We have thrilled recently to the great fight that our men have
made on the beachhead below Rome, tihey will win that fight, and they
will win Rome. But beyond that battle there are hundreds of more
battles that must be fought.
It is still a long, dreary and dangerous road to Berlin and Tokio.
There are still many
battles to be fought in Asia and Europe, There
are still billions of Bonds to be bought in America. This is no time
for the cheers of victory.
Instead, it is a time to dedicate ourselves
anew to the grim task which is still ahead of us. That is the dark
side of the picture. But there is a bright side too.
Every one of us can be proud of the job our democracy has done.
In a few short months we transformed ourselves from a nation at peace
to a nation concentrated on winning a war.
In a year and a half, from
a standing start, we were producing more of the guns and planes and
tanks and ships which win modern wars than all our enemies combined —
in spite of the ten years’ start they had on us. Today American
industries and American labor and American management working as an
All-American team are producing as much war material as all of our
enemies and all of our Allies combined.
havd organized, armed, eauipped and trained an army of
7-g- million of the finest fighting men the world has ever seen. We
have transported
million of them across the ocean. Our planes and
our Allies' control the world’s skies. Our ships control the seven
seas. We have driven our enemies out of Africa and out of the Solomons
and we are pressing in toward their homelands with irresistible force.
All of this is a tremendous achievement.
It shows what a great
nation can do when it is aroused — and when it is united. Eor neither
government, nor industry, nor individuals, nor management, nor labor
could have done these things alone. This is a matter of team work.
This is the greatest fight we have ever had, and we are winning it
because we are all playing the game together. There have been mistakes
made, of course, as there always will be in any human activity.
Government has made some.
Industry has made others. But most of us
are content to judge by results, and to temper our criticism with the
acknowledgment of great deeds greatly done. A man whose football team
has won a victory for him, accepts that victory with gratitude. He
does not complain that the quarterback called two or three questionable
plays. He does not grouse because the game was won by one touchdown
instead of three,

- 4 I make you an earnest plea for an understanding of the vast
problems that the government must meet and of the tremendous and
close decisions which the government must make in its share of the
prosecution of this war.
I do not ask any man to forbear from
criticizing when he sees something wrong. But I do ask every man
for his help to make the war effort of our nation an unbeatable piece
of teamwork on the part of every person and every group in the nation.
Your officers suggested to me that you might like to have me
discuss the question of the nation's postwar economy. This is of
course a tremendous subject and one which will affect the life and
well-being of every one of us.
I believe that it lies within our
power to see that out of this war comes a fuller life for the people
of America. There is no reason why victory should not lead to lasting
benefits for us individually and as a nation.
One of the most pressing problems will be the distribution of
surpluses created by our war production, and unconsumed by the war.
We must dispose of these surpluses without injuring our economic
structure, without jeopardizing industrial and individual well-being
in our country after the war.
Within just the last few days definite steps have been taken
toward the orderly, well-planned solution of this problem of surplus
goods* This week the papers carried the announcement that the
President had created the Surplus War Products Administration.
Under the President's order: a member of the Treasury Department will
be on the Surplus War property Policy Board of this new agency, and
the Treasury's Procurement Division is charged with the duty of
selling all Government-owned surpluses of consumer goods.
I imagine
that many of you are wondering why the Treasury should be selected
for that job. That is because few people realize that our Procurement
Division is one of the biggest buyers of merchandise in the world.
We handle a million different kinds of articles.
In the last ten
years we have bought for the various government departments, for
Lend-Lease, and the Red Cross over five billion dollars worth of all
sorts of things. We buy whatever4 is needed for the operation of
every department and bureau and Commission of the government except
the Army, Navy, Maritime Commission and government corporations.
Since July 1, 1940 our purchases of pharmaceutical supplies, medical
equipment and hospital precision equipment have amounted to $38,000,000.
So you see, the Treasury does have some considerable knowledge of mer­
chandise and the ways of the merchant in general, and of the
pharmaceutical field in particular.
Now, as I said, we are being given the responsibility of doing
one of the world's biggest selling jobs.
Among the billions of dollarp worth of property we will be
called upon to sell will undoubtedly be many millions of dollars
worth of drugs and other pharmaceutical supplies and equipment.

- 5 Also, I have heard, from time to time, hints and whispers that
sometimes some pharmacies do sell, now and then, a few other lines
of merchandise which are not strictly pharmacal. Undoubtedly we will
have large quantities of most of those lines to sell, also. So you
can understand that I am doubly happy that you have taken me into
your Association and made me a full-fledged druggist — for we shall
be doing a lot of business together.
I cannot tell you yet any exact details of how the Surplus War
Property Administration will operate. But I can tell you now that
the task will be undertaken with the object of selling our surpluses
in such a manner, and at such a time, that the established business
of the countiy will be strengthened rather than undermined.
We expect to market our merchandise through regular business
channels. We will offer it in lots small enough so that the operator
of modest size will bq able to buy in free competition with the largest
concerns. We expect to protect established business houses from unfair
upstart competition. We expect to assure them of legitimate profits
for handling surplus merchandise. And at the same time we expect to
assure the purchaser of good values in everything he buys from us.
There is no slightest disposition on our part to create a governmentowned or controlled sales agency to compete with private business.
In a thousand ways we will avail ourselves of the help of pro­
fessional and trade associations such as yours. We will call upon
expert and efficient business men in every line for advice; and even
draft them into our Surplus Property sales organization for their
experience and knowledge.
This again is a matter of teamwork.
If we all work together it
cannot help but be successful. And success can mean for all of us
a greater measure of happiness and well-being in a world once more at
peace.
Prom my knowledge of you, and from the record which you as
individuals, and as an Association have hung up during this war,
I know that the nation can continue to count upon you, without
question and without reservation, for an overflowing measure of
patriotic and loyal assistance.

0O0

2*

If the serrieea&e&’e 1942 tax was larger than the tax ©a hie 1943

Imam, he ©ay recompute hie 1942 tax under a spedai f a n m l a uhich ©ay
result in redueiag the 1942 tax to the mm» amount m the tax oa 1943 ine one*
Mri e e on horn to figure this reeoaaputation ©ay he obtained from any collector
of Internal revenue«

».

I t a marri od serviceman haa no ta rd ila inore», and hia f i f a i a £ iU ag

a separate rehjarp# ehe ©ay use a ll o f th a ir 2
6^Á&jkíÁ>*^^ í , ’&£*■<*&.

4«

* i &^\T4A.(-é*Ke k

1

personal e x e ^ tí0 ^ ¿ r^ '^ 'J**
■%***■ t &WO n

.

If a eerricoman la abroad and hie flftfs oat incoia© le lees than

ti,200 ehe ©ay aleo postpone her reten until he con»« book*

5* Dependents o f eerrieemoa should not im lude in th e ir incesse any
■‘

:

amounts received aa allotments or fondly allowaneee •

•■■f&’f '•
"

-

mà&usr
BURSA0 o f m

v &

im

m m L

m

s

asrniin

% À 8Em m n

Harold IT* G $ m m * Acting Commissioner of Internai Sareime» said today that
special offerta will bo made to «spedite refunds duo to members of the orated
forces on their 1943 income tax returns*

'*

j.

■
■

•■-■

fhe law requires members of the armed forees ifco are stationed in this
country to file incase tax returns by March lb on about the asme bacia as
eirilians*

However, under provisions of the Current Fax Payment Act of 1943

the majority of service returns will result in refunds rather than tax payments.
In order to make possible the desired prompt handling of these returns«
Commissioner Graves urged members of the armed forces to send their 1943 returns
as early as possible to the some internal revenue collection office In which
the 1942 return was filed.

He also urged each of them to attach to his 1943

return the statement (For® 1125);which he should have received from the
collector» showing the mount of his 1942 tax and how much was paid on it.
Service personnel who are on sea duty or outside of the continental United
States core not required to file returns or pay taxes until after they cone back
or after the war ends.
Commissioner Graves said that» in cooperation with the iar and Havy Depart­
ments, the Bureau of Internal Revenue Is providing as much assistance as possible
to service personnel in this country in filling out returns.
Special tax reminders for servicemen include:
1*

Fhe first #1,500 of last year’s active service pay is not taxable and

should not be included in income.

For instance» an officer whose base pay last

year was |2»000 would report only #500.

- 2 -

2*

If the serviceman* s 1942 tax was larger than the tax on his 1943

income, he may recompute his 1942 tax under a special formula which may
result in reducing the 1942 tax to the same amount as the tax on 1943 income*
Advice on how to figure this recomputation may be obtained from any collector
of internal revenue*
3*

If a married serviceman has no taxable income, and his wife is filing^

a separate return, she may use all of their #1,200 personal exemption#^>v
•VM *m **£*-r V A>v TSifo ,
-fL ^
(& i f C ' A ,
^
4* If a serviceman is abroad and his wife*s own income is less than
#1,200 she may also postpone her return until he comes back*
5.

Dependents of servicemen should not include in their income any

amounts received as allotments or family allowances*

- 0 -

TREASURY DEPARTMENT
BUREAU OF INTERNAL REVENUE

WASHINGTON

Graves/ Acting Cornmissioner of Internal Revenue, said today that
special efforts will be made to expedite refunds due to members of the aimed
forces on their 1943 income tax returns*
The law requires members of the armed forces who are stationed in this
country to file income tax returns by March 15 on about the same basis as
civilians*

However, under provisions of the Current Tax Payment Act of 1943

the majority of service returns will result in refunds rather than tax payments*
In order to make possible the desired prompt handling of these returns,
Commissioner Graves urged members of the armed forces to send their 1943 returns
as early as possible to the same internal revenue collection office in which
the 1942 return was filed.

He also urged each of them to attach to his 1943

return the statement (Form 1125),which he should have received from the
collector, showing the amount of his 1942 tax and how much was paid on it*
Service personnel who are on sea duty or outside of the continental United
States are not required to file returns or pay taxes until after they come back
or after the war ends*
Commissioner Graves said that, in cooperation with the War and Navy Depart­
ments, the Bureau of Internal Revenue is providing as much assistance as possible
to service personnel in this country in filling out returns*
Special tax reminders for servicemen includes
1.

The first #1,500 of last year’s active service pay is not taxable and

should not be included in income.

For instance, an officer vitlose base pay last

year was #2,000 would report only #500.

't i t

DATE.

To

2-19-44

.Mr.Shaeff er

Charlie,
HereSs another of the routine
plugs for March 15.
If*s been ok’d hy the bureau.
If it’s o.k. on your side, I suggest
it be marked for release next Saturday
or Sunday— at least far enough ahead so
I can mail advance copies to the Collectors
and to supply O.W.I.
Pis have some one send me
25 copies, preparedthe usual batch for
Miss Hawkins, and send 200 by special
messenger to Simon Lesser, Room 3449
Social Security bldg.
Thanx

TREASURY DEPARTMENT
BUREAU OF INTERNAL REVENUE
Washington

FOR RELEASE SUNDAY NEWSPAPERS
Sundry, February 37.__.i944,

Press Service
No. 40-76

Harold N. Graves, Acting Commissioner of Internal Revenue, said
today that special efforts will he made to expedite refunds due to
members of the armed forces on their 1943 income tax returns«
The law requires members of the arined forces who are stationed in
this country to file income tax returns by March 15 on about the same
basis as civilians. However, under provisions of the'Current Tax Payment
Act of 1943 the majority of service returns will result in refunds rather
than tax payments,
In order to make possible the desired prompt handling of these
returns, Commissioner Graves urged members of the armed forces to send
their 1943 returns as early as possible to the same internal revenue
collection office in which the 1942 return was filed. He also urged each
of thein to attach to his 1943 return the statement (Form 1125), which he
should nave received from the collector, showing the amount of his 1942
tax and how much was paid on it.
. Service personnel who are on sea duty or outside of the continental
United States are not required to file returns or pay taxes until after
they come back or after the war ends.
Commissioner Graves said that, in cooperation with the War and Navy
Departments, the Bureau of Internal Revenue is providing as much assistance
as possible to service personnel in this country in filling out returns.
Special tax reminders for servicemen include?
1. The first $1,500 of last year's active service pay is not
taxable and should not be included in income. For instance, an officer
whose base pay last year was $2,000 would report only $500.
2. If the serviceman's 1942 tax was
1943 income, he may recompute his 1942 tax
may result in reducing the 1942 tax to the
1943 income. Advice on how to figure this
from any collector of internal revenue.

larger than the tax on his
under a special formula which
same amount as the tax on
recomputation may be obtained

3. If a married serviceman has no taxable income, and his wife
is filing a separate return, she may use all of their $1,200 personal
exemption by claiming that amount on Form 1040, or by checking block
number 4 on the back of Form 1040A.

-

2

-

4. If a serviceman is abroad and his wife's own income is less
than $1,200 she may also postpone her return until he comes hack.
5. Dependents of servicemen should not include in their income
any amounts received as allotments or family allowances.

-oOo-

*m mr
Æ

s

other looted assets on the world market* Similarly,
the United States Government cannot in any way
condone the policy of systematic plundering adopted
by the Axis or participate in any way directly or
indirectly in the unlawful disposition of looted
gold.
In view of the foregoing facts and considerations,
the United States Government formally declares that it
does not and will not recognize the transference of
title to the looted gold which the Axis at any time
holds or has disposed of in world markets* It further
declares that it will be the policy of the United
States Treasury not to buy any gold presently located
outside of the territorial limits of the IMted
States from any country which has not broken relations
with the Axis, or from any country i M c h after the
date of this announcement acquires gold from any
country which has not broken relations with the Axis,
unless and until the IMted States Treasury is
fully satisfied that such gold is not gold which
was acquired directly or indirectly from the Axis
powers or is not gold which any such country has
been or is enabled to release as a result of the
acquisition of gold directly or indirectly from
the Axis powers^
It is understood that a similar Declaration is
being issued simultaneously by the United Kingdom
Treasury* and by the Union of Soviet Socialist
Republics. ’
o

1/28/44

0

0

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TREASURY DEPARTMENT
Washington
FOR RELEASE,"'-' 12 NOON, .EWT, i
T u e s d a y F e bruary 22, -1944.

Press Service
No. 40-77

j,‘ Secretary Morgenthau today issued the following
Declaration:
...
‘ On ;January 5* 1943 the United States and cer­
tain others of the United Nations issued a warning
to ail concerned, arid in particular to persons in
neutral; countries, that they intend to do their
utmost to defeat the methods of dispossession prac­
ticed by the governments with which they are at war
against the countries and peoples who have been so
wantonly assaulted and despoiled«
Furthermore, it
has been announced many times that one of the pur­
poses of the financial and property controls of the
United States Government is to prevent the liquida­
tion in the United States of assets looted by the
Axis through duress and conquest.
One of the particular methods of dispossession
practiced by the Axis powers has been the illegal
seizure of large amounts of gold belonging to the
nations they have occupied and plundered.
The Axis
powers have purported to sell such looted gold to
various countries which continue to maintain diplo­
m a t i c and commercial relations with the Axis, such
gold thereby providing an important source of for­
eign^ exchange to the Axis and enabling* the Axis to
obtain much-needed imports from these countries.
The United States Treasury has already taken
measures designed to protect the assets Of the in­
vaded countries and to prevent the Axis from dis­
posing of looted currencies, securities, and other
looted assets on the world market.
Similarly, the
United States Government cannot in any way condone
the policy of systematic plundering adopted by the
Axis or participate in any way directly or indi­
rectly in the unlawful disposition of looted gold.

/
- 2

In view of the foregoing facts and considera­
tions, the United States Government formally
declares that it does not and will not reoognize
the transference of title to the looted gold which
the Axis at any time holds or has disposed of in
world markets.
It further declares that it will
be the policy of the United States Treasury not to
buy any gold presently located outside of the ter­
ritorial limits of the United States from any
country which has not broken relations with the
Axis, or from any country which after the date of
this announcement acquires gold from any country
which has not broken relations with the Axis, u n ­
less and until the United States Treasury is fully
satisfied that such gold is not gold which was
acquired directly or indirectly from the Axis
powers or is not gold which any such country has
been or is enabled to release as a result of the
acquisition of gold directly or indirectly from
the Axis powers.
It is understood that a similar Declaration is being
issued simultaneously by the United Kingdom Treasury, and
by the Union of Soviet Socialist Republics.

-0 O0 -

'i .

Pag# 5 last paragraph*

Today, the beat solution of this problem seems to ba the rapid
and equitable distribution of all such good« as fast as the armed
services find them to be in surplus.

As long as the war lasts the

markets will be hungry for practically everything which a civilian
great
can use. Even when peace comes there will still be a m shortages
of most civilian goods until private industry can reconvert to
peacetime production.

And I am not worried about industry lacking/

for markets after we distribute this surplus.
for all commodities is so great —
so vast —

The Civilian demand

and civilian purchasing power

that industry will have clear sailing if our saps

surpluses are out of the way.
■J*
o r J *
Page p - change 4th and 5th sentences to reeds

It is our intention that the people who are In position to
perform a useful service In the disposition of these articles shall
bs allowed to make a fair, honorable profit on the transaction.

It is our determination that the ultimate consumer will not suffer
from unreasonable markups by any of these distributors.

7_ X

of e v e r y k in d W h ich w i l l be o u r s when th e w a r e n d s
w i l l be a tre m e n d o u s a s s e t t o u s i n o u r s h a r e

of th e

t a s k o f h e l p i n g to r e c o n s t i t u t e a w a r f r e e w o r ld a n d
w i l l a i d to t h e w e 1 g i t

of o u r w o rd s a t th e p e a c e

tab le•
■

1

Kd&t

§ ||p | § j |

J | p

-tL ^

JL M

-r | $

f | f | I | |j | | |

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i,
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ív-eAÍ

.

c o n tr ib u te to th e n a tio n a l

£

ju

,

We can u se s o n »

o f them v e r y e f f e c t i v e l y t o c o n t r o l ru n -a w a y p r i c e s
and th u s c u r b i n f l a t i o n *

Much o f o u r s u r p lu s e s o f

p a r t l y f i n i s h e d g o o d s a n d o f th e t o o l s w h ic h e q u ip
o u r g r e e t w a r p l a n t s c a n be u s e d t o h a s te n I n d u s t r i a l
r e c o n v e rs io n , to s tim u la te
to

r e e m p lo y m e n t.

I n d u s t r y an d commerce and

V a s t q u a n titie s o f w ar

p l a n t m a c h in e t o o l s can be used t o r e p la c e o l d o r
f

w o rn o u t t o o l s i n
4

re s u lt/ ^
can m

c i v i l i a n p r o d u c t io n — w i t h th e

+ t■

v

f

-

.

A m e r i c a ^ new p e a c e tim e m a n u fa c tu r in g p l a n t s

th e l a s t w o rd i n e f f i c i e n c y *

i n t h a t w ay we

can s o r e l y m a i n t a in o u r lo w c o s t m s s p r o d u c t io n
|U is

o f g o o d s , and a t th e same tim e p r e s e r v e o u r wage
mmrnm

and l i v i n g s c h e d u le •

f i n a l l y m s u r p lu s w e a lt h

m

■'

(V
~U>

b.
dona m

o x w ar#

tifo-

If

wa C8n lo o k fo r w a r d t o a c o n t i n u a t i o n o f ta ils earns
c lo s e w o r k in g p a r t n e r s h i p b e tw e e n l a b o r a n d i n d u s t r y
Jj^X

d * M

t h a t we

a n d g o v e r n m e n t, th e n t h e r e la
can 39

y c o n v e r t th e d e s t r u c t i v e p r o c e s s
f iA

'

o f w e r i n t o ecu s t r u c t i v e p r o c e s s ^ o f p e a ce — t h e r e i s

li

<2» d o u b t

in n y m in d t h a t we can t r a n s f o r m

th e s e w a r tim e s u r p lu s e s w h ic h to d a y a p p e a r t o many # £
/

T
■

¡fflspl

a# a s a t h r e a t t o o u r e c o n o m y .in to a b u lw a r k s t r e n g t h
*7

A

and n a tio n a l p o w e r.
Y e s , I w o u ld l i k e

to s u g g e s t to y o u t h a t th e s e

s u r p lu s e s a b o u t w h ic h we w o r r y t o d a y c a n b e a g r e a t
b le s s in g to o u r n a t i o n .

Th e y c o n s tit u t e e s ta b lis h e d

w e a l t h — u s a b le n a t i o n a l a s s e t s .

I f th e y a re

a d m in is t e r e d w i s e l y an d c o u r a g e o u s l y , t h e y w i l l

m

f o r o u r p ro b le m I s th e p ro b le m o f e v e r y t y p e o f
m e r c h a n d is e r .

V© e x p e c t to fo rm c o m m itte e s f o r e a c h

c a t e g o r y o f consum ers g o o d s and we w i l l a s k each
c o m m itte e t o f o r m u l a t e f o r u s tw o p la n s o f
d i s t r i b u t i o n , — th e f i r s t to be o p e r a t i v e c u r in g
th e p e r i o d fr o m now u n t i l th e end o f th e w a r , and
th e s e c o n d t o p l a n f o r th e d i s t r i b u t i o n o f th e v a s t
s u r p lu s e s t h a t w i l l f o l l o w th e end o f th e w a r *
)

T h r o u g h o u t t h i s w a r t h e r e ha s be e n m a g n if ic e n t
a a i M M f W H l R g c o o p e r a t io n o f M e le a n I n d u s t r y a n d
A m e ric a n l a b o r w i t h t h e i r g o v e r n m e n t.

N e v e r h a ve

we known s u c h a n i n s p i r i n g e xa m p le o f te a m w o rk .
I b e s p e a k f o r t h e g o ve rn m e n t a c o n t i n u a t i o n o f t h i s
c o o p e r a t io n I n s o l v i n g th e p ro b le m s ,

Individual business men and upon the counsel of trado associations*

X am confident that we «hall encounter no reluctance on tha pert

of any Carlean busi rrnnsmn to leave hie own interest« and to como

to Washington to assist ue in solving t h i s problem.

X am eure

that ovary buainoeaman will realise that atûeaa this problem 1«

solved for hie particular type of commodity hie services back at

home mill be of little value*

Accordingly, in the very near ffcture

the treasury Department will invite to Washington many roproeentativee

of the merchandise industry.

We expect to call upon the experience

of chain atoros, large department stores and small retail merchante

section which will comduct continuing studies of the three factors

involved in this particular problem#

type of commodity are*

1*

These three factors in each

The probable postwar surplus, 2* The

probable civilian shortage, and 3# The probable length of time

it will take industry to reconvert to manufacture that particular

type of commodity.

the reason why X say this study must be coni

all three factors vary from month to month#

factor —

:&use

Evan the last

ths length of time required for a gi^en industry to

reconvert —

varies«

Hsay of these industries are using in their

prfsent war production much machinery it would use in civilian

■production*

But that machinery is wiring out*

Ho* much of it will

be available for civilian production depends upon ths length ef

the war*
/

In pi

..,/ |||, '.:
•> '| '
■■ p

,

«g the» distribution of those consumer commodities,

ths Treasury Department intends to rely heavily ppon the advice of

X am hopeful that the experience we gain in the coning month«

in disposing of . u c h ^ l T d * M * s «

coanoditi.. u

sr.

now becoming available w i n be helpful to us in perfecting our

techniques of distribution before huge surpluses become available*

X think you will agree with me that we are justified and ~~ would

be derelict in our duty if we failed to —

to dispose of post war surpluses*

now make all of our plans

X don't think there is any man

In the country who is «Hart enough to walk into his office the

morning after the armistice and ever catch up with this problem

unless long before that armistice his plans arc perfected*

For instance, it may very well happen that it will be impossible

to move all different kinds of commodities at the same time*

Obviously, the thing to do Is to first move those goods which private

industry can most quickly reconvert to manufacture*

In order that

we will know at all times what priority we shamld accord the scheduling

of the various commodities, it is our purpose to establish a small

- 1*-

diiposi of these article» shall •'.« allowed to make a fair, honorable

profit on the transaction*

It is our determination that the ultimate

consumer sill not suffer from unreasonable mark-ups over the price at

which the retailer acquired the goods*

He are resolved that such

commodities as come into our poeeeeelon will be disposed of in lots of

s also which will giro ths small town merchant the snae opportunity to

fill his requirements as the largest department store In ths land enjoys*

We intend to conduct this business In a goldfish bowl with every

record and every transaction ep m to the whole wide-world for examination*

Following Secretary M0rgenthau,e longtime policy of publicly announcing
V

the details of any new Treasury venture before It goes Into effect we intend

to make known to the Congress, to the trade and to the public the techniques
-me

to be used in dispoeing of various commodities*

In this way Congress will

FI

have an opportunity to object if it disapproves our plans*

And If our

plans arc unsound, the trade and the public will be able to help us correct

them.

u ~

down the main street» of our American communities year In and year

out* and we are determined to hare no truck with any concern that

is organised for the purpose of making money out of the war*

Between now and the end of the war, in moat commodities we shall

enjoy a sellerfs market*

today there exist serious shortages in

the civilian economy, and not only are civilians short ©f many

essentials but the retail stores of this country* the hardware

stores, the plumbing supply concerns* the dry goods stores* are in

jeopardy because of a lack of things to sell*

it la our conclusion

that we can provide the most equitable distribution of these

commodities a

mm the civilian population by disposing of them

throng regularly established £ g £ 0 S M M e 4s*-^We believe that by

doing this we shall not only achieve the highest possible degree

of equity of distribution but we shall be able to resuscitate many

failing retail concerns*

It Is our intention that the people who

- 13 -

to accomplish this, but with all of its difficulties it seems to

be the safest way out«

And I*® not worried about industry lacking

for markets after we distribute this surplus«

for all commodities is so great —

the civilian demand

and civilian purchasing power so

fast ~~ that industry will have clear sailing if our surpluses

are out of the way*

The essence of the whole plan seems to be timing«

Already

the services have started to turn over to us some commodities which

are either temporarily or permanently surplus to their needs*

Insofar as it is possible, it is our intention to dispose ©f these

commodities through the regular channels of trade.^we do not intend

to sell them to erpeeulatoraT} And if anyone Is suggesting to you

that you invest your money in a concern being organised to buy up

Government surpluses, I would recomend that you forego the

opportunity, because I can assure you the treasury Department intends

to do business with the people who have been doing business up and

-

12

~

Still other people suggest that we can best promote the reconversion

of industry by looking up these goods in sealed warehouses and leaving

them there until some future date when they can be introduced into
out
our markets with/jeopardy to our economy*

suggestion*

1 find little merit in that

1 see no one in this audience tonight who would be

willing to Invest $50,000 In a shoe factory if he knew that In a

Government warehouse in Boston there were stored 10 million pairs of

shoes which could foe released upon the market at any time*

It Is my

conclusion that such surpluses as remain unexpended in this country

will hang like the sword of Damocles over American industry until

they have been absorbed by our domestic markets*

Today, the best solution of this problem seems to be the rapid,

equitable distribution of these surpluses insofar as it is possible

to distribute them in the interval between the end of the war and

the time when reconverted private industry is again able to make

deliveries of these same commodities*

It isn*t going to be easy

hanging over the hand of American business such vast store® of surplus

property that it will suffocate all initiative of private industry

to reconvert from the job of war production, #steh it ha® been doing

so well, to manufacture once again it® normal peacetime commodities*

I am well aware that a not inconeiderable proportion of these

surpluses can also be used to great advantage for the relief and re­

habilitation of destitute populations in many tragic part® of the

world.

I am convinced however that regardless of our desire and our

determination to bring aid and comfort to these people^through good®

and equipment not necessary for our own productive efficiency there
/
say still be left awaiting disposal a tremendous accumulation of

goods of all kind®.

Occasionally it i® suggested that perhaps the

easiest solution to our problem would be the destruction ©f these

goods.

Speaking for myself 1 advise you that I can foresee no

combination of circumstances ihich from the economic, social or moral

point of view could in any way justify the destruction of five cents

worth of usable goods.

A/
V

I am sure all of you can appreciate the concern of the Treasury

as the central fiscal agency of the government in the overall post

■war problem*

Perhaps some of you are wondering why the Treasury is

to play such an active part in the disposal of particular types of

commodities*

For many years the Procurement Division of the Treasury

Department has been one of the largest buyers of merchandise in the

world*

We buy whatever is needed for the operation of all government

departments and bureaus except the Army, Navy, Maritime Commission

and government corporations*

We handle over a million different items

and in the last ten years we have bought for government departments,

for Lend Lease and for the Red Cross more than five billion dollars

worth of goods*

You see the five thousand employees of the Treasury

Procurement Division have had some experience in business*

Divisto! ©f the Treasury Departraent.

The War

Food# Administration 1#

mad# responsible for the disposal of food, the Maritime Commission is

made responsible for the disposal of ships and maritime property, and

capital and producers* goods including plants, equipment, materials,

scrap and other industrial property are to be disposed of by a

subsidiary of the Reconstruction Finance Corporation,

the Executive Order provides for the appointment of a

Surplus

War Property Policy Board composed of representatives of 12 Government

departments and agencies of which the Treasury Department is one.

a

think it is obvious that X as In no position to speak for

the Surplus War Property Administration nor for the Surplus war Property

Policy Board which has not yet met,

Nevertheless I think it might be

helpful to you if I told you something of the thinking that has been

going on in the minds of men who will be charged with disposing of

these surpluses.

The great concern of many men in industry, and in retail and

wholesale business is that when this war is over there will be left

9

they had the kind of a surplus some of our folks are beginning to

worry about*

I know that many people In this audience recall the amounts of

surpluses left after the last war*

I doubt If there are many people

here t£io approved the manner of disposal of those surpluses*

Stated

briefly, the problem is to avoid those mistakes when we dispose of

this war *s huge surplus*

le must dispose of it In a manner that

will not only do no violence to our post-war economy, but in a way

that will help to rehabilitate and develop our post-war economy and

revive our current wartime economy*

I am sure that many of you have read in the newspapers over the

weekend the splendid report of Bernard Baruch and John Hancock oa

post-war problems •

Perhaps some of you have read that part of the

report that related to post-war surpluses*

Since the time this report

was given to the President an locative Order has been issued setting

up a Surplus Bar Property administration.

tinier that Order the dis­

posal of all consumers goods, other than food, is placed in the Procurement

the tremendous store® of supplies end equipment ere accumulated«

®te aero hour arrives and the offensive is on#

the weather continues

to be on our side* /the terrain is less difficult than m s anticipated,

the expected percentage of breakdowns fails to occur, the enemy makes

two or three serious mistakes, and the campaign that was planned for

four months achieves its objective in two months#

One of the inevitable

results of an easier than expected victory is a surplus, — •a surplus

that would not have existed had that campaign lasted four months#

May X suggest to, you that in this war as in every war, there

may come a tim

when one battleship, when one squadron of planes,

when one battalion of field artillery say tip the scales in a minor

engagement which will tip the scales in a larger engagement#

Believe

me it would be folly if the procurement branches of our aimed services

dldnH sake sure that we had that extra battleship, that extra squadron

of planes, that extra battalion of field arlilleiy when that time comes -

and of course there will be extras backing up extras*

dh no*

Poor planning?

the very beet planning, and Oh how the Japs and the Hesls wist*

- 7 -

of its surrender an overall surplus adequate for continued military

resistance and for the home front*

Ihen a campaign is planned tor General Staff must assume the

worst possible complications*

It must assume that the weather will

turn for the worst, it must presume that our enemy will be astute,

it must anticipate breakdowns in a certain percentage of automotive

and combat equipment. the General Staff plans for all of those adverse

contingencies,

then it concludes that it will require four months

to take the objective of that campaign, and it accumulates vast

stores for that fouMionth campaign, —

with a generous margin of

reserve for those unforeseen contingencies which, somehow or other,

develop in every campaign*

In formulating these plans for supplies

and equipment the General Staff is likewise moved by the fact that

generally speaking the Army with the largest amount of the best

equipment is the Army that suffers the fewest casualties and I know

that we all applaud and approve a general staff that is mindful of

the safety of its men regardless of the expenditure of materiel.

<•* 6 **

p y
/ the total war activities1 expenditures for fiscal years 1943

and 1944 are estimated at #172 billion*

Much of this huge m m was

used to purchase goods which m y be surplus at the end of the ear*

l a ® s u m I d«m*t need to point out to m y Manchester retail merchant

shat would hap,pen to the value of his stocks and inventories if these

surpluses were dumped on the market or were sold in tremendous lots

at sacrifice prices to speculators*

My talk to you folks tonight la predicated on the assumption
t*ut there will be great surpluses after the war*

It doesn *t

require a brilliant mind to conclude that if we win this war there

will be a tremendous surplus, aid I know m

are going to win it*

I have met some people who seem to have the idea- that a post-war

surplus is a result of bungled planning, and that our armed services

should be able to plan their procurement with such exactitude that

the last can of bean® will be eaten by tee last soldier mustered out*

I beg to differ.

History ha# never known a victory without some

surplus, nor a defeated nation which had at Its disposal at the time

m

Invested in defense plant properties $15,000,000,000*

to be sure

so«« el* these plants will be retained by the Government is a standby

states*

Sat the majority of them will be disposed of*

I don«t think

I need to spell out for any industrialist or realtor in this audience

the catastrophe that would result from the indeecrlainate dumping

of these properties upon the market*

the Army and the havy since Pearl Harbor have bought literally

millions of shoes, sheets, shirt«, flashlights, automobiles, under­

wear and every conceivable consumers• commodity*

For instance, for

the Iforth African invasion there were required more than 700,000

different items of equipment and supply,

there were 390 different

items of clothing and individual equipment*

sore than 10,000 different items*

The Signal Corps had

The Medical Corps had 68,000

different items* The Engineers in Jiorth Africa had more than 100,000

different items, including everything from bridges and bulldozers te

storage tanks*

Biere were 250,000 different ordnance items*

a rreai metropolis* but

many

in a

representativa ¿seriosa city*

For

the objectives of the disposal of post ear surplus«« are

directed at tbs rehabilitation and strengthening of meditiie-sised
and small maim facturera and merchants*
1 am sell asare of the danger of discussing post-ear surpluses
or pest-ear anything at a time when

m

are barely

m

the threshold

of driving bade the oppressors« ^fhie ear is far from over and 1

sent to assure you that those people mho are thinking and talking
about post-mr problems are not doing so because they believe peace

Is imminent»

they are working

m

these problems nee because they

are avare of the complexity of the problema* the difficulties of
solving thee* and M É O C the tremendous importance of arriving
at proper solutions well in advance of the time for the execution

of those post-war plans»

lm

may be able to appreciate

A
km

vitally every person In this

room Is interested in the sensible disposal of post-ear surpluses
sham 1 remind you that the United States «ànce sobering the ear has

confidence that when this w

is we® and the peace has been secured,

ise can then with assurance resume the task of making of this

America the happiest, most prosperous land in the world*

Many problems will require solution before we know we are on

a safe, sound road back*

I believe one of the most important

problems is our immediate post-war economy, for unless our post war

economy is established on sound principles at the earliest possible

moment after the cessation of hostilities, all of the institutions

which have made America great and powerful will be in temporary

jeopardy at least*

Perhaps the phase of this problem that is first

in point of time is the problem of the disposal of post war surpluses,

and it is of this subject that I wish to talk to you tonight*

Yours was a timely invitation*

This group of industrial and

commercial leaders of Manchester, Hew Hampshire,constitute a most

appropriate audience for the discussion of poet war surpluses, and I

think that it is fortuitous that this discussion is being held, not in

tipi tig *•*'

Second in importane# t© the wliming ©f the « r and ©f primary

importan©« «©et the © r le wo© 1« the problem of securing e Jeet

®od t a r i n g peace*

Just ss everything w# «re depende epe© victory

i© the © T ) so, toe, doe« everything ©e hope t© be depend upo© «

lasting peace*

Bar the m m wA U m im & generation the doge of

mer have fee#© unleashed without provocativa ©pen the people of

thie evsntry*

<5© neither occaso© did the kmrimn people tfutafc

fresa their responsibilities i© the«# two great conflict«.

do shrink in horror fr o m the stupidity of

«

Bit we

ix m g li& g peace which

begets more ware m ê which threatens to visit « repetitiva of the

mm

disasters e© our children.

1 think X can state fey cosmo©

raeant that without victory in this war and a Just aid eatodng

p#aee

life will held very little for any

of us.

But vheo these two have been accomplished they «st fee
implemented fey the prtettealitte» of everyday life, feyt the

aseeeenee of a continuing hi# standard of living, fey the aasora©«® of permanent employment for all who id# to work, % a

~~T>L » $ ouf '■'4£a

(Jtf, H^

(%ijj^ti^. hMxll ) dr

<£• ■>

n

C fy y isy i^ V ¿ X

7*

Believe me, ay friends, It1* great to be here and It1* fine

to be here cm such an occasion &e this#

Seeing the faces of old

friends, hearing the views of the folks back hoasf, observing the

energy with which f m are doing your a m particular jobs, learning

the philosophical m y © in which you are accepting the multitudes

of wartime irritation® and inconveniences •» all these constitute

a tonic which should be prescribed in more frecent doses for

every resident of lashing ion, 1« 0*

I suspect that all of ns here tonight agree that the most

important issue before i is country today is the sinning of this

ear*

Everything we are and everything we believe in is in jeopardy

until this war is eon*

X wonder If there Is a man in this ram

#io would prise life itself if he bad to live that life aider the

yoke of the lasls or the japs*

statement*

1 realise that this is a strong

It ml$it be m i l to think It over before you go to

TREASURY DEPARTMENT

f

^

^,:*, ft .-WaShlllgtOlU - ;

;.(The-. follomng address- by John.. L© Sullivan,.Assistant;
*;<•r¿j -¡..0
.Secretary. of the. Treasuity., -at .the annual dinner-of the; {V •... r:-y-,
Manchester,,New, .Hampshire, Chamber-of- Commerce^ at, the ; ,'j■>•
;>¡.y+
Carpenter Hotel and. broadcast,over Station ¥JFEA, is.,f>, ;iv V
scheduled for delivery at 6:30 P© Mo, Eastern War Time,
..jii^hia-4
Wednesday« February 23« 19AA. and is for release at that
.-.time©) - ... ... .
;
. r:.;-•.. 7

Believe me, *uy .¿Spends, it *s great,to..be.,,hei^'and. ?it,fs fine to’be 'diere,./!-.
on such an occasion'as thiso Seeing the faces of ,pld;friends,,hearing.t,he.
views of the folks back home, Observing.the .energy with which you are.:doing-wyour own particular jobs, learning the philosophical ways in which you are
accepting the.multitudes_of wartime irritations and .inconveniences.-.»-« all
these constitute .a tonic which should be prescribed in more frequent doses.. *$- for every resident of Washington, ,D0 C©
.
.. , ;
’ '...„l,
I suspect that all. of us here tonight agree that .the most, .important :• to;-;
issue before this "country today is .the winning of this war© Everything,we v {i
are and e v e t h i n g we believe, in is in jeopardy until this war is won© r
I wonder ifthefb is a man in this room. Who, would, prize, .fife itself if he-had:.',
to live that life under the yoke of the Nazis or the Japs©. -I.realize- t h a t r.
this is a strong statement© It might be well to think it over before you go
to bed tonight© It is a good way to check up. and to. discover-.just--what your
own personal stakevin victory is©
Second in importance to .the winning of .the war and of primary .importance.*
once the war i^ won is the problem of securing a .just.and enduring' peace© - ■
Just as everything we are depends upon victory in .the war, so,- too, does .
everything we hope. to. be depend upon a lasting peace©.. Eor, the second time - *
in a generation the dogs of war have been unleashed, without provocation?- ■
. •?
upon the people of this' country© On neither occasion did the American
people shrink from their responsibilities in those two. great •conflicts© .>>■
But ¥re do shrink-in horror from the.stupidity of a bungling peace "Which->- j .*
begets more wars and which threatens to visit a repetition-of the -same
disasters on our children© I think. I can state- .by common '.consent that with-* -f
out victoiy in this war and a just '$nd enduring peace life .‘
.will hold-very,
little; for any of us©
'
,s '
But when these two have been accomplished they must be ;implemented ;by r.:
tne practicalities' of everyday life, by the assurance of a continuing high
standard of living, .by the assurance of permanent employment for. .all..f
who „•
wish to work, by a ^confidence that when this war is. won.and the .peace has ...a ,,...
been^ secured, we can then with assurance resume the task, of making, of this Z. •
America- the happiest, most p'rosperdus .land in the World©

AO-78

-

2

-

Many problems will recruire solution before we know we are on a safe,
sound road back.
I believe one of the most important problems is our im­
mediate post-war economy, for unless our post-war economy is established
on sound principles at the earliest possible moment after the cessation of
hostilities, all of the institutions which have made America great and
powerful will be in temporary jeopardy at least,. Perhaps the phase of
this problem that, is first in point of time is the problem of the disposal
of post-war surpluses, and it is of this subject that I wish to talk to you
tonight.
Tours was a timely invitation.
This group of industrial and commercial
leaders of Manchester, New Hampshire» constitute a most appropriate audience
for the discussion of post-war surpluses, and I think that it is fortuitous
that this discussion is being held, not in a great metropolis, but in a reresentative American city. For many of the objectives of the disposal of
post-war surpluses are directed at the rehabilitation and strengthening of
medium-sized and small manufacturers ahd merchants,
I am well aware of the danger of discussing postrwar surpluses or
post-war anything at a time when we are barely on the threshold of driving
back the oppressors.
This war is far from, over and I want to assure you
that those people who are thinking and talking about post-war problems are
not doing so because they believe peace is- imminent,
Thèy. are working on
these proolems now because they are aware of the complexity of the prob­
lems, the difficulties of- solving them, and the tremendous importance of
arriving at proper solutions well in advance of the time for the;execution
of those post-war plans.,
The importance that the Congress attaches to the post-war problem is
evidenced by the fact that there are now five committees of the House and
Senate which are concerning themselves with general problems of.post-war
planning and ten committees of the House and the Senate which are investi­
gating specific problems all of which relate to our post-war economy. The
entire membership of the House and the Senate are alert to the problem and
I am sure will be prompt and helpful in passing whatever legislation will
be required to implement our present governmental machinery.
You may be able to appreciate how vitally every person in this room
is interested in the sensible disposal of post-war surpluses when 1 remind
you that the United States since entering the war has invested in defense
plant properties $15,000,000,000, To be sure some of these plants will oe
retained by the Government in a standby status. But the majority- of them
will be disposed of. I don’t think I need to spell out for any industrial­
ist or realtor in this audience the catastrophe that would result from the
indiscriminate dumping of these properties upon the market.
The Army and the Navy since Pearl Harbor have bought literally.millions
of shoes, sheets, shirts, flashlights, automobiles, underwear and every con­
ceivable consumers' commodity, For instance, for the North African invasion
there were required more than 700,000 different items of equipment and supply.

- 3 -

There were 390 different items of clothing and individual equipment* The h
Signal Corps had more than 10,000 different items* The Medical.Corps had •
68.000 different items* The Engineers in North Africa had more than
.
100.000 different items, including everything from bridges and bulldozers, ..
to storage tanks0 There were 250,000 different ordnance ;items0
,.
The total war activities.1 expenditures for fiscal years 194-3 arid 194-4- ‘
are estimated at $172 billion* Much of this huge sum was .used to-purchase
goods which may be surplus at the end of the war* I am sure I don*t need
to point out to ary Manchester retail merchant what would happen to the value
of his stocks and inventories if these surpluses were dumped on the market or,
were sold in tremendous lots at sacrifice prices to speculators#
lifer, talk to you folks tonight is predicated on the assumption that there
Yo.ll be great surpluses after the waro It doesn*t require a brilliant mind .
to conclude^ that if we win this war there will be a tremendous surplus, and •
I know Tire aVe.going to win it* I have met some people who seem to have the
idea that:a post-war surplus is a result of bungled planning, and that our.
armed services should be .able to plan their procurement with such exactitude
that the last can of beans will be eaten by the last soldier mustered'out*
I beg to differ* History has never knoY/n a victory without some- surplus,
nor a defeated nation which had at its disposal at the time of its surrender
an overall.surplus adequate for continued military resistance and for the
home front*
When a campaign is planned our General Staff must ass ike the worst pos­
sible complications* It must assume that t he'v;eather v/ill turn for the worst*,
it must presume that our enemy will be astute, it must anticipate breakdowns
in a certain percentage of automotive and combat equipment* The General
Staff plans for all of those adverse contingencies* Then it concludes that
it Y/ill require 'four months to take the objective of that campaign, and it
accumulates vast stores for that four-month campaign,— with a generous
margin of reserve for those unforeseen contingencies Y/hich, somehow or other,
develop in every campaign* In formulating these plans for supplies and
equipment the General Staff is likewise moved by the fact that generally
speaking the Army with the largest amount of .the best equipment is the Army
that suffers the fewest casualties and I know that we all applaud and ap­
prove a general staff that is mindful of the safety of its men regardless
of the expenditure of materiel*
The tremendous stores of supplies and equipment are accumulated* The
zero hour arrives and the offensive is on0 The v/eat her continues to be on
our side0 The terrain is less difficult than was anticipated, the expected,
percentage of breakdoY/ns fails to occur, the enemy'makes two or three serious;
mistakes, and the campaign that v/as planned for four months achieves' its
objective in two months0 One- of the inevitable results of an easier than
expected victoiy is a surplus, — a surplus that would not have existed had
that campaign lasted four months*

~ 4 -

May I suggest to you that in this-war as in every war, there may come
a time when one battleship, when one squadron of planes, when one battalion
of field artillery may tip the scales in a minor engagement which will tip
the scales in a larger engagemente Believe me it would be folly if the pro­
curement brandies of our armed services didn’t make sure that we had that
extra battleship, that extra squadron of planes, that extra battalion of
field artillery when that time comes — and of course there will be extras
backing up extras0 Poor planning? Oh no© The very best planning» and oh
how the Japs and the Nazis wish they had the kind of a surplus some of our
folks are beginning to worry about©
X know that many people in this audience recall the amounts of sur­
pluses left after the last war0 I doubt if there are many people here who
approved^the manner of disposal of those surpluses® Stated briefly the
problem is to avoid those mistakes when we dispose of this w a r ’s huge surplus0 We must dispose ox it in a manner that will not only do no violence
to our post-war economy, but in a way that will help to rehabilitate and
develop our post-war economy and revive our current wartime economy®
I am sure that many of you have read in the newspapers over the week­
end the splendid report of Bernard Baruch and John Hancock on post-war
problemso Perhaps some of you have read that part of the report that re­
lated to post-war surpluses® Since the time this report was" given to the
President an Executive Order has been issued setting up a Surplus War
Property Administration® Under that Order the disposal of all consumers
goods, other than food, is placed in the Procurement Division of the
Treasmy Department® The War Foods Administration is made responsible for
tne disposal of food, the Maritime Commission is made responsible for the
disposal of ships and maritime property, and capital and producers’ goods
including plants, equipment, materials, scrap and other industrial property
are wo be disposed of by a subsidiary of the Reconstruction Finance Corpora­
tion®
The Executive Order provides for the appointment of a Surplus War
Property Policy Board composed of representatives of 12 Government depart­
ments and agencies of which the Treasury Department is one0
I am sure all of you can appreciate the concern of the Treasury as
£he central fiscal agency of the government in the overall post-war problem®
Perhaps some of you are wondering why the Treasury is to play such an active
part in the disposal of particular types of commodities® For mary years the
Procurement Division of the Treasury Department has been one of the largest
buyers of merchandise in the world.
We buy whatever is needed for the
operation of all government departments and bureaus except the A ray Navy
Maritime Commission and government corporations® We handle over a million
different items and in the last ten years, wq have bought for government de­
partments, for Lend Lease and for the Red Cross more-than five billion dol­
lars worth of^goodso You see the five thousand employees of the Treasury
Procurement Division have had some experience in business©

-5I think it is obvious that X*am in no position to speak for the Sur:'pli^ War pfdpeytyiAdministration nor for the Surplus War property Policy
Board~whiich’has notr.yet ,sfet. „'iHeV,ertheless X think i-tonight be helpful to
ydu-tif^i told you something Qf the thinking"that*has>been going.on*in the
'itiiids^of men'who> will be charged'with 'disposing^&f^ these surpluses* ,■
The great concern of .many men in indue try;:and .in retail- and whole­
sale“ business- is- that when-this war is ovét' there will be left* hanging
over' the head of f^erican,..businee^;,such^’vast' stores1 of.surplus property
that'it will suffocate, all initiative of private’'industry to-reconvert
from the job" of war production, which it has been üoihgrso swell, to. manu­
facture ‘once :again its normal peacetime jcommodfties.1'-.
//>
I am well aware that a not inconsiderable proportion of these-.surpluses can also be used to great advantage for the relief and rehabilitation
.of destitute'populations.in’many .tragic; phrts:of the'world. • X am convinced
however that regardless of our desire and pur*determination, to bring aid and
comfort to these people through-goods and equipment not necessary’for our
bwn productivè efficiency there may still be left awaiting disposal a tre­
mendous* ‘àccumulntion of goods of all kinds. Occasionally it is suggested
that perhaps the easiest solution to our problem’would be the destruction
of these good's, Speaking for myself I advise1you that I can foresee no
combination of circumstances which from the economic, social or- moral point
of view could in any way justify the destruction of five cents worth of
usable-goods; .
'
»‘
Still other people suggest that we can best promote the reconversion
of industry by locking, up these goods in sealed warehouses and leavihg
them there’until some future date-when they can be introduced into our
markets without jeopardy- to- our economy. X find little merit in that sug­
gestion.' I see no one in this audience tonight who would be willing to
invest $50,000 in a shoe factory if he knew that in a Government-.-warehouse
in Boston there were stored 10 million pairs of shoes which.could be re­
leased upon the market, at any time. It is my conclusion that such sur­
pluses as remain unexpended in this country will hang like the sword of
Damocles over American industry until ;they have been absorbed-by., our
domestic markets; '
■ !tis
.
Today, the best solution of.this problem'seems to be the rapid and
equitable distribution of all such goods as fast as the armed•services
find them to be in surplus. As long as the war. lasts the markets will
be hungry for practically everything which a civilian can use. .Even when
peace comes there will still b.e great shortages of most civilian goods
until private industry can reconvert to peacetime production, And I am
not worried about industry lacking for markets after we’distribute this
surplus. ’The civilian demand for all commodities is so great — * and
civilian purchasing power so vast — that industry will havp clear sailing
if pur surpluses are out .of the way.

- 6 The essence of the whole plan seems to be timing. Already the ser­
vice's have Ataried ;to- turn overvto 'tis’ some' commodities which; gire^ either
temporarily or permanently surplus1"to their-need's. . Insofar:as.-ii-t is. pos­
sible,'it is'otir/’
lritentibn-to‘dr'ispbse- of these commodities through the
regular channels of trade. We' do hot intend to sell .them kp, speculators.
And* if anyone is*'suggesting to you that you.invest your money-in a concern
.being organized to buy up Government surpluses, I would recommend that you
'fo,re^O'the'' Opportunity,* because I can assure you the Treasury.^Department
intent's 'tq!
do business with the people who have been doing business up and
'down ’the ’kaih' streets of our American communities year in and year, out,
and,
f
¥ e are 'determined to have no truck with any concern that is organized
' for the purpose of making money out of the war.
Between now and the end of the war, in most commodities we shall en—
; ;Jby a 'seller rmfket*
Today there exist unsatisfied demands in the
.rcivi'lian ecohdm;^, :and not only are civilians short of many commodities but
’■ the retail *stores of this'country,, the hardware stores, the,plumbing
supply concernsy-the dry goods stores, are short c>f.things .,$q sell* It is
our conclusion that we can provide the most .equitable distribution of
these commodities among the civilian population b y _disposing,,of them through
regularly established trade channels. We believe-that.by.doingr(this. we
Shall not only achieve the highest possible degree-.of ,equity.;.of.distribu­
tion but we shall be able to resuscitate many.failing retail concerns. It
is our intention that the 'people who are in= position'to*>perform.a useful
service in'the disposition of these articles shall-, be allowed to. niakp a
fair, honorable profit on the transaction* It is our determination., iphat
the ultimate consumer will not suffer from unreasonable markups by any of
these distributors. We are resolved that such commodities as- come into
our possession will be disposed of in lots- of a size which will give the
small town merchant the same opportunity to fill his requirements as. the
largest department store in the land enjoys*
We intend to conduct this business in a- goldfish bowl with every
record and every transaction -open to the whole'wide world for examination*
Following Secretary Morgenthau’.s longtime policy ,of publicly announcing
the details of any new Treasury venture before it goes into .effect we in­
tend to make known to the Congress, to the trade and to the public the
techniques to be used in disposing of various commodities. And if our
plans are unsound, there will be ample opportunity for anyone to help us
correct them.
I am-hopeful that the experience we gain -in the coming months in
disposing of such relatively small amounts of surplus commodities as are
now becoming available will be helpful-to:us•in perfecting oup techniques
of distribution before huge surpluses become, available. I think you will
agree with me that we would be derelict in our.,duty, if we failed to make
all of our!plans now to dispose of post-war surpluses♦ X don’t think
there'is any man in the country who is smart-enough, to walk into, his of­
fice the morning after the armistice and ever catch up with this problem
unless long before that armistice his plans are' perfected*

- 7 For instance, it may very well happen that it m i l he impossible to
move all different kinds of commodities at the same time* Obviously, the
thing to do is to first move those goods -which private industry.' can most
quickly reconvert to manufacture© In order that we will know at all times
wliat priority we should accord the scheduling of the various commodifies,
it is our purpose to establish a small section which will conduct continu­
ing studies of the three-factors involved in this particular problem©
These three factors in each type of commodity are: 1© The probable post­
war surplus * 2© The probable c iv ilia n shortage, and 3o The probable length
;of time it Trill take industry to reconvert to manufacture that particular
type of commodity ©
The reason why I say this study must be continuing is: because all
three factors vary from month to month* Even the last factor — the length
of time required for a given industry to reconvert -— varies© Iviany of
these industries are using in their present war production much machinery
it would use in civilian production* But that machinery is wearing out©
How much of it will be available for civilian production depends upon the
length of the war©
In planning the distribution of these consumer commodities, the
Treasury. Department intends to reiy heavily upon the advice of individual
business-men and upon the counsel of trade associations© I am confident
that we shall encounter no reluctance on the part of any American business­
man to leave his own interests and to come to Washington to assist us in
solving this problem© I am sure that every businessman will realize that
unless this problem is solved for his particular type of commodity his
services back at home will be of little value©, Accordingly,- in the very
near future the Treasury Department will invite to Washington many rep­
resentatives of the merchandise industry© We expect to call upon the
experience of chain stores, large department stores and small retail mer­
chants for our problem is ine problem of every type of merchandiser© .We
expect to form committees for each category of consumers goods and we will
psk each committee to formulate for us two plans of distribution, — the
first to be operative during the period from now until the end of the war,
and the second to plan for the distribution of the vast surpluses that will
follow the end of the war©
Throughout this war there has, been magnificent cooperation of American
industry and American labor with their government© Never have we known
such an inspiring example of teamwork® I bespeak for the government a con­
tinuation of this cooperation in a joint effort to solve the problems of
peace© If we can look forward to a continuation of this same close work­
ing partnership between labor and industry and government, then there is
little doubt that we can efficiently convert the destructive process of
war into constructive processes of peace —— there is little doubt in my
mind that we can transform these wartime surpluses, which today appear
to many as a threat to our economy, into a bulwark of national welfare
and national power©

-8 -

Yes, I would like to suggest to you that these surpluses about which
we worry today can be a great blessing to our nationo They constitute
established wealth —— usable national assets,, IT they are administered
wisely and courageously, they will contribute to the national well-being,»
We can use some of them effectively to control run—away prices and thus
curb 'inflation,. Much of pur surpluses of partly finished goods and of
the tools which equip our great war plants can be used.to^hasten industrial
reconversion, to stimulate industry and commerce and to speed reemployment0
Vast quantities of war plant sa chine tools can be used to replace old or
worn out tools in civilian production — with the result that Americans
new peacetime manufacturing plants can become the last word in efficiency«
In that way we can maintain our low cost mass production of goods, and at
the same time preserve our wage and living standards« Finally, the surplus
wealth of every kind which will be ours when the war ends avili be a tre­
mendous asset to us in our task of helping to reconstitute a free world
and will add to the weight of our words at the peace table0
I have every confidence that this great democracy’which is success­
fully meeting the challenge of total war will — with equal success — solve
the problems of total peace„

0O0

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Tuesday » February 2 2 , 1944«

Press Sendee

The S ecretary of the Treasury announced l a s t evening th a t the tenders fo r
$ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or thereabouts, o f 91-day Treasury b i l l s to be dated February 24 and
to mature May 2 5 , 1944, which were offered on February IS , were opened a t the Federal
Reserve Banks on February 21.
The d e ta ils o f th is issu e a re as follow s:
Total applied fo r - $1 ,9 7 8 ,9 2 9 ,0 0 0
Total accepted
- 1 ,0 0 7 ,4 S I,0 0 0
Average p rice

(includes $75 ,0 0 3 ,0 0 0 entered on a fixed p rice b asis a t 99*905 and accepted in fu ll)
- 99*905/ Equivalent r a te of discount approx. 0 .3 7 5 % per annum

Range o f accepted competitive bids:
- 99 . 9IO Equivalent r a te of discount approx., 0 .356$ per annum
0 .3 7 6 * "
"
- 99.905
»
*
»
*»
"

High
Low

(45 percent o f the amount bid fo r a t the low p rice was accepted)

Federal Reserve
D is tr ic t

Total
Applied fo r

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco

$

4 5 ,2 1 6 ,0 0 0
1 ,3 5 8 ,7 1 3 ,0 0 0
3 2 ,4 9 2 ,0 0 0
7 0 ,4 4 0 ,0 0 0
20 , 400,000
1 6 ,3 4 0 ,0 0 0
2 6 9 ,4 5 9 ,0 0 0
2 9 ,3 3 0 ,0 0 0
10 , 152,000
1 9 ,3 2 5 ,0 0 0
2 0 ,3 7 7 ,0 0 0
S 6.685.000

TOTAL

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

Total
Accepted
$

2 6 ,1 7 3 ,0 0 0

636, 266,000
1 7,763,000
4 8 ,1 6 5 ,0 0 0
17 , 815,000
11 , 225,000
133 , 215,000
1 5 ,8 5 5 ,0 0 0
9 , 982,000
1 6 ,7 4 0 ,0 0 0
16 , 362,000
5 7.920.000
H , 007,4 8 1 ,0 0 0

T R E A S U R Y DEPA RTMENT
Washington

F O R RELEASE, M O R N I N G N EWSPAPERS,
Tuesday, F e b r u a r y 22, 1944.

P r ess Service
No. 40-79

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 evening that
the tenders

for $ 1 , 0 0 0 , 0 0 0 , 0 0 0 or thereabouts,

T r e a s u r y b i lls

of 9 1 - d a y

to be dated F e b r u a r y 24 a n d to m a t u r e M a y 25,

w h i c h w e r e o f f e r e d on F e b r u a r y 18, were o p e n e d at

1944,

the Federal

Reserve B a nks on F e b r u a r y 21»
The details of this

issue are as

follows:

Total a p p l i e d for - $ 1 , 9 7 8 , 9 2 9 , 0 0 0
Total a c c e p t e d
1 , 0 0 7 , 4 8 1 , 0 0 0 (includes $ 7 5 , 0 0 5 , 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 . 9 0 5 a nd a c c e p t e d in full)
A v e r a g e p r ice

- 9 9 . 9 0 5 / E q u i v a l e n t rate of discount
approx, 0 * 3 7 5 % p er a n n u m

Range of a c c e p t e d c o m p etitive bids:
High

- 9 9 , 9 1 0 E q u i v a l e n t rate of d i s count
approx, 0 , 3 5 6 % p e r a n n u m

Low

- 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 % p er a n n u m

(45 pe r c e n t of the a m o u n t bid for at

Federal Reserve
District ________

the l o w price was accepted)

Total
A p p l i e d for

D o spon
New Y o r k
P hiladelphia
C l e veland
Ri chmond
Atlanta
Chicago
St, Louis
M i n n e apolis
Kansas C i t y
Dallas
San Francisco

$

TOTAL

45, 216,000
1,358, 713,000
32, 492,000
70, 440,000
20, 400,000
16, 340,000
269, 459,000
29, 330,000
10, 152,000
19, 325,000
20, 377,000
86, 685,ooa

$1,978, 929,000

Total
Accepted

$

26,173,000
636,266,000
17,763,000
48,165,000
17,815,000
11,225,000
133,215,000
15,855,000
9,982,000
16,740,000
16,362,000
57,920,000
$1,007,481,000

TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington

FOR IMMEDIATE RELEASE
Tuesday, February 22t 1944

Press Service
No. 40-80

H a ro ld N. G r a v e s , A c tin g C o m m issio n er o f I n t e r n a l
R even ue, an n ou n ced to d a y t h a t th e tim e f o r f i l i n g

*

1 9 4 4 D e c l a r a t i o n s o f E s ti m a te d Incom e and V i c t o r y
T ax h a s b e e n e x te n d e d u n t i l A p r i l 1 5 .
He e m p h a siz e d , h o w e v e r, t h a t th e e s t i m a t e s o f
t h i s y e a r * s incom e m ust n o t be c o n f u s e d w ith th e
f i n a l t a x r e t u r n s on l a s t y e a r ’ s incom e w h ich 5 0
m i l l i o n p e r s o n s m ust f i l e

n o t l a t e r th a n M arch 1 5 .

R e tu rn s on 1 9 4 5 t a x a r e r e q u i r e d by law o f a l l

ta x ­

p a y e r s , r e g a r d l e s s o f w h e th e r o r n o t 4 k t a x was
w ith h e ld from t h e i r w a g e s .

Only a l i m i t e d number

o f t a x p a y e r s a r e r e q u i r e d to ta k e th e a d d i t i o n a l
s t e p o f e s t i m a t i n g t h i s y e a r ’ s in co m e , w h ich h a s
now b e e n p o stp o n e d u n t i l A p r i l 1 5 .
O r i g i n a l l y , i t was in te n d e d t h a t b o th th e
1 9 4 5 r e t u r n s and t h e 1 9 4 4 d e c l a r a t i o n s would be f i l e d
a t th e same t i m e .

H ow ever, th e d e c l a r a t i o n form s

w ere d e la y e d p en d in g f i n a l a c t i o n on th e new Revenue
B ill.
C om m issio n er G rav es s a i d th e new d e c l a r a t i o n
form s p r o b a b ly w i l l be d i s t r i b u t e d l a t e
and th e f i r s t

in s ta llm e n t o f e s tim a te d ta x w i l l n o t

be due u n t i l th e d e c l a r a t i o n i s
A p ril 1 5 .

i n M arch ,

f i l e d on o r b e f o r e

TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington
FOR IMMEDIATE REE EASE
Tuesday, February 22, I B M

Press Service
No.. 40*80

Harold N • Graves, Acting Commissioner of Internal Revenue,
announced today that the time for filing 1944 Declarations of
Estimated Income and Victory Tax has been extended until
April 15*
He emphasized, hp^ever? that the estimates of this y e a r fs
income must not be confuted With the final tax returns on last
yearfs income which 50 million persons must file not later than
March 15.

Returns on 1941 tax are required by law of all t a x ­

payers, regardless of whether or not tax was withheld from
their wages.

Only a limited number of taxpayers are required

to take the additional step of estimating this year *s income,
which has now been postponed until April 1 5 f
Originally, it was intended that both the 1943 returns and
^he 1944 declarations would be filed at the same time«

However,

the declaration forms were delayed pending final action on the
new Revenue Bill.
Commissioner Graves said the new declaration forms probably
will be distributed late in March, and the first installment
of estimated tax will not be due until the declaration is filed
on or before April 15.
oOo

QtjU*

-yur, ¥o-?l

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:
♦

Country of Production

|
Authorized for entry
for consumption
Qpota Qiuantity J
:
(Pounds)_______
(Pounds) 1/ _ i— àis of (Bate)

Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Non-Signatory Countries:

2,/

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

8

378,049,924
210,586,818
4,245,938
2,717,071
6,116,747
13,298,042
23,570,661
28,577,501
9,049,637
1,852,176
23,699,048
1,735,878
1,051,782
17,073,167

8

3,203,492

Eeb# 12, 1944
ti
H
ft
fl
8
8
H
8
8
8
8
8

Qpyotas as established by action of the Inter-American Coffee Board on
January 12, 1944*

TREASURY DEPARTMENT
WASHINGTON
FOR IMMEDIATE RELEASE,
Wednesday, February 23, 1944.

Press Service
No. 40-81

The Bureau of Customs announced today preliminary figures showing the
ouantities of coffee authorized for entry for consumption under the ouotas
for the 13 months commencing October 1, 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941, as
followsJ

Cbiintiy 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
Hait i
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

Feb. 12, 1944

It

378,049*, 924
210,586,818
4,245,938
2,717,071
6,116,747
13,298,042
23,570,661
28,577,501
9,049,637
1,852,176
23,699,048
1,735,878
1,051,782
17,073,167

It

3,203,492

if
it
ii
it
if
ii

it
H
II
II
ft
It

Quotas as established by action of the Inter-American Coffee Board on
January 12, 1944.

TO*

Mr. Shaeffor

DIVISION OP PUBLIC RELATIONS
Assignment sheet for Press Releases and other publications (speeches, etc.)
Check list to be used.
Date of release :

fe§!>

Title

Li
*
0û

___________ _— ,
— ,--- Press Service No. dJù

-* f'^

f/**** *OM
y **& ttAAKf
tj ,
i
(

Procèss_

^T0< Copies

( A

* 7

G

jf 9
/

C

( )

CaCo

( )

Canadien Commodities

Cfq

( )

Coffee ouotas

CQ,

( )

Cotton quotas

wq,

( )

Wheat quotas

RP&T

(y )

Pinancial and Tax

B&B

( )

Bills and Bonds . . . . . . .

BUL

( )

Bulletin

Dii

( )

Debt limitation ...........................

PPC

( )

Foreign Punds Control . . . . . ,-. . . . .

NM

( )

Net market transactions . . . . . . . . . .

PSp

( )

Paul speeches

PP

( )

Pinancial Pditors . . . . . . . . . . . . .

SP

( )

Editors . . . . . .

........

. . . . . .

//■
........ "?

•

........

. v. , . , .......... .. .

r

»? .

........

Press room . ............
1 J „
Door . . . . . . . . . . .
0 ~
O V I ..............
* 3. p
Building distribution . , > a ” (iJ
Miss Fitzgerald, 5 th PI, rear, Washington Building . . .
Mrs. Pberts, 719 Washington Building . . . . . . . . .
______
Total
/¿J n

Remarks :

TREASURY DEPARTMENT
Washington

POR RELEASE, MORNING NEWSPAPERS
Friday,. February 25, 1944

Press Servie©
No, 40-82

Secretary of the Treasury Morgenthau today made public the first
of a series of tabulations which will appear in the report “Statistics
of Income for 1941, Part 2,“ compiled from corporation income and de­
clared value excess-profits tax returns, excess profits tax returns,
and personal holding company returns*

These data are prepared under

the direction of Acting Commissioner of Internal Revenue Harold N. Graves.
SUMMARY DATA
The number of corporation income and declared value excessprofits tax returns for 1941 is 509,066, of which 264,628 show net in­
come of $18,111,094,621, while 204,278 show a deficit of $1,778,552,590,
and 40,160 have no income data (inactive corporations).

The normal tax

is $2,947,568,227, the surtax is $796,999,658, thé declared value excessprofits tax is $64,148,618, and the excess profits tax is $3,359,185,514.
Thus the total tax is $7,167,902,017, an increase of 181 percent over
the total tax liability for the preceding year.
The increase or decrease, 1941 over 1940, in the number of returns,
net income, deficit, and tax follows:

-

2

-

Corporation returns, 1941 and 1940: Humber of returns,
net income, deficit, and tax
(Money figures in thousands of dollars)

Total number of returns
Returns with net income: /
Humber of returns
Het income 1/
Tax liability:
Income tax 2 ]
Declared value excessprofits tax 3/
Excess profits tax 4/
Total
Returns with no net income: 1 j
Humber of returns
Deficit 1/
Humber of returns of inactive
corporations

Increase or
decrease (-)
Humber or
Percent
amount

1941

1940

509,066

516,783

-7,717

-1

264,628
18,111,095

220,977
11,203,224

43,651
6,907,871

20
62

3,744,568
64,149

2,144,292
30,744

1,600,276
33,405

75
109

3,359,186

373,511

2,985,675

799

7,167,902

2,548,546

4,619,356

181

204,278
1,778,553

252,065
2,283,795

-47,787
-505,243

-19
-22

40,160

43,741

-3,581

-8

Eor footnotes, see p. 7.

The amounts of tax liability shown throughout this release do not tahe into
account any credit claimed for income and profits taxes paid to a foreign country
or United States possession*

~ 3 RETURNS INCLUDED
The data presented in these tabulations are from returns for
the calendar year ending December 31, 1941, a fiscal year ending
within the period July 1941 through June 1942, and a part year with
the greater portion of the accounting period in 1941,
The data are from (l) corporation income and declared value
excess—profits tax returns, Norm 1120, filed by domestic corpora­
te01^ and resident foreign corporations other than those which
are exempt from tax under section 101.» Internal Revenue Code as
amended, and (2) insurance company income tax returns, Form 1120L,
filed by domestic life insurance companies and by foreign life
insurance companies carrying on insurance business within the United
States or holding reserve funds upon business transacted within the
United Statesc

The statistics are compiled from the returns as

filed, prior to revisions that may be made as a result of audit by
the Bureau of Internal Revenue?»

Data from amended returns and tenta­

tive returns are not included in the tabulations! ■
The complete report. Statistics of Income for 1941. Part 2, also
wfill contain otner detailed statistics from the corporation income and
declares. value excess—proiits tax returns, as well as data from excess
profa fcs tax returns» Form 1121, and personal holding company returns,
Form 1120H,
CHANGES IN LA ¥ AFFECTING CORPORATION RETURNS (FORM 1120)
The comparability of the figures tabulated from the 1941 returns
and those from the 1940 returns is affected by the changes in law

- 4 -

introduced "by the Revenue Act of 1941„
are*.

The most significant changes

,
(1) Provision is made for the deduction of the excess profits tax

for the taxable year in computing normal-tax net income and surtax net
income, whereas for 1940 the income tax was allowed as a deduction in
computing excess profits net income»
(2)

A surtax equal to 6 percent of surtax net income not in ex­

cess of $25,000 plus 7 percent of the amount-in excess of $25,000 is
imposed on all corporations, except nonresident foreign corporations»
Surtax net income, in general, equals normal-tax net income plus inter­
est on partially tax-exempt securities*
(3)

The normal-tax rates-provided by the Revenue Act of 1941,

which are, in general, an integration of the immediately prior income
tax rates and defense tax rates, apply to taxable years beginning
after December 31, 1940»

The rates thus provided are as follows:

Size of normal-tax net income
Rot in excess of $5,000
$5,000 not in excess of •
$ 20,000
$20,000 not in excess of
$25,000
$25,000 not in excess of
$38,461«54
$38,461*54 or more

Rate

$750 plus 17$ of the amount
in excess of $5,000
$3,300 plus X9> of the amount
in excess of $20,000
$4,250 plus 37$ of the amount
in excess of $25,000
24$

Foreign corporations engaged in business within the United States
are subject to a flat 24 percent tax, computed on normal-tax net in­
come $

Mutual investment companies are also subject to a flat 24 per­

cent tax based, however, on the adjusted net income (computed without
net operating loss deduction) less the basic surtax credit*

- 5 -

The 1941 Act also integrates

the defense tax rates with the

declared value excess-profits tax rates, effective with respect to
taxable years ending after June 30, 1941.
CLASSI3TCATIONS PRESENTED
The geographic distribution of the returns for 1941 is shown in
table 1, covering the 48 States, the District of Columbia, and the
Territories of Alaska and Hawaii.

The data, although tabulated by

States and Territories in which the returns are filed, do not repre­
sent what may be called the geographic distribution of income.

Re­

turns filed in a State may not be a complete coverage of all corpora­
tions whose principle place of business is located therein.

A corporation

may file an income tax return either in the collection district in
which it has 'its principal place of business or in the collection
district in which it has its principal office or agency.

Conversely,

a tabulation for a given State may include data from returns of corpora­
tions having their principal place of business in another State.

There

is no way of ascertaining from income tax returns the amount of income
originating in a specific State or tije amount of tax paid thereon.
The classification ef the returns by net income and deficit classes,
shown in table 2, and the classification by returns with net income and
returns with no net income, shown in both tables., are based on the amount
reported for declared value excess-profits tax computation, adjusted by
excluding the net operating loss deduction.

Table 1. - Corporation retains, 1941, by States and Territories, for returns with net Income and returns with no net inoonsi Humber of returns , 1total compiled
receipts, net income or d eficit, and dividends paid in cash and assets other than cam stock; also, for returns with net
inccnet Total tax, normal tax, surtax, declared value excess-profits tax, and excess profits tax
______________________________ (Konev figures in thousands of dollars)
States and Territories

1 Alabama
2 Alaska
3 Arizona

4 Arkansas
5 California
6 Colorado
7 Connecticut
8 Delaware
9 D istrict of Columbia
10 Florida
11 Georgia
12 Hawaii
13 Idaho
14 Illin o is
15 Indiana
16 Iowa
17 Kansas
18 Kentucky
19 Louisiana
20 Maine
21 Maryland
22 Massachusetts
23 Michigan
24 Minnesota
25 Mississippi
26 Missouri
27 Montana
28 Nebraska
29 Nevada
30 New Hampshire
31 New Jersey
32 New Mexico 33 New lork
34 North Carolina
35 North Dakota
36 Ohio
37 Oklahoma
38 Oregon
39 Pennsylvania
40 Rhode Island
41 South Carolina
42 South Dakota
43 Tennessee
44 Texas
45 Utah
46 Vermont
47 Virginia
48 Washington
49 West Virginia
50 Wisconsin
51 Wyoming
Total
toe

footnotes, see p. 7 ,

5/

Total
number of
returns 6/

Number of
returns

3,523
278
1,341
2,403
23,606
4.820
9,335
3,110
2,667
9,581
5.425
799
1.820
34,298
12,038
6.979
4,116
4,654
5,901
5,570
6,032
23,978
15,035
9,664
2.425
14,020
2,374
4,052
897
1,492
29,086
935
123,801
6,238
1,986
24,267
4,909
4,547
23,987
3.425
3,397
2,063
4,706
14,951
2,486
1,199
7,044
9.979
4,650
14,451
1,131

2,084
126
669
1,533
11,546
2,181
5,505
1,788
1,662
4,255
3,460
608
738
18,940
6,845
4.001
2,539
2,899
3,263
1,779
3,357
18,577
8,832
5.002
1,421
7,816
1,167
2,208
SS6
869
12,632
504
53,703
4,276
1,014
15,180
2,463
2,302
15,168
1,911
2,009
1,057
3,029
8,198
1,214
631
4,601
4,715
2,836
7,758
646

509,066

264,628

Total
compiled
receipts 7/

Wet
income 1/

Total tax

Normal
tax 8/

885.189
16,518
170,081
385,392
8,181;474
668,175
3,519,085
2,202,915
917,850
915,716
1,476,510
390,544
174,506
19,053,245
2,838,513
1,567,973
997,934
1,398,155
1,208,443
614,416
1,979,769
7,475,175
12,287,498
2,807,083
562,166
4,694,820
217,262
660,994
335.190
302,842
5,251,092
81,780
44,061,392
2,192,251
125,764
12,491,470
1,402,406
803,654
14,679,595
1,167,112
792,714
128,154
1,550,095
4,090,311
337,525
212,066
1,729,780
1,617,294
950,591
3,172,472
63,119

90,945
2,529
11,625
31,676
849,312
73.769
491,587
604,452
92,615
72,711
129,944
54,796
18,340
1,479,489
292,884
83,447
88.769
132,979
115,755
59,315
208,602
675,476
1,325,949
204,527
24,652
417,0S7
18,667
49,740
12,754
25,766
620,782
5,908
4,909,061
220,594
5,436
1,332,522
116,695
68,642
1,550,575
125,187
86,125
6,228
109,271
369,480
50,695
25,059
217,055
185,520
89,026
512,250
7,552

59,265
764
,3,716
10,857
538,870
25,239
254,411
204,822
27,721
22,767
47,937
18,636
6,247
605,2S7
124,957
26,747
28,996
49,214
58,445
20,116
70,512
266,266
629,998
70,829
8,550
155,509
5,670
17,415
5,609
10,147
244,830
1,651
1,749,169
81,425
1,473
624,494
36,610
27,846
660,219
54,298
39,173
1,695
41,561
110,6S8
9,760
11,190
84,487
76,856
53,115
142,453
1,899

16,790
410
2,158
6,125
146,674
13,892
70,917
74,664
17,405
12,765
24,981
9,142
5.557
252,856
53,527
15,486
17,786
25,209
20,617
11,159
33,861
112,772
215,405
37,572
4,551
75,015
5,635
9,241
2,152
4.557
92,551
1,024
746,705
42,424
863
217,267
23,562
11,497
243,210
20,714
15,667
1,047
20,296
69,704
5,674
5,408
58,940
28,602
15,506
55,145
1,185

175,181,820

18,111,095

7,167,902

2,947,568

Surtax 9/

5,559
122

611
1,629
38,161
3,992
19,845
21,369
5,009
5,520
5,866
2,702
950
65,460
11,496
5,794
4,929
7,212
5,231
2,790
9,596
50,023
57,922
9,838
1,013
19,294
1,092
2,706
652
1 ,2 0 2

24,815
321
214,589
10,257
284
55,690
6,611
5,261
69,747
5,486
2,884
341
5,513
19,204
1,569
988
10,774
7,914
4,505
12,685
577
797,000

Declared
value
excessprofits
tax 5/
515
18
62
256
2,855
216
2,292
285
259
577
657
165
77
5,920
1,236
377
255
440
489
267
- 808
3,566
5,151
744
178
1,579
61
299
36
74
1,840
26
14,462
675
81
4,450
201

454
6,156
586
295
48
607
1,067
90
118
724
679
548
1,811
28
64,149

Excess
profita
tax 4/
18,599
214
905
2,850
151,200
7,159
161,559
108,505
í,048
6,106
16,455
6,628
1,683
283,041
58.677
7,090
6,028
16,555
12,107
5,900
26,046
119,904
351,540
22,675
2,627
59,621
881
5,169
790
4,314
125,624
280
775,615
28,067
245
547,087
6,436
12,654
541,127
27,512
20,329
258
15,546
20,683
,2,427
6.677
54,050
59,661
12,756
74,792
509
5,559,186

Dividends
paid in
cash and
assets other
than onp
19,525
538
4,049
8,149
329,680
34,609
109,722
525,093
54,537
28,722
47,747
27,651
9,598
479,785
73,549
26,779
29,797
51,629
47,826
20,476
74,615
229,885
415,567
69,086
6,725
149,113
7,578
20,505
6,471
8,835
220,954
1,939
2,107,792
62,395
1,369
555,644
58,511
15,431
469,345
32,996
12,181
2,238
50,106
207,208
14,092
5,128
64 , oca.
52,304
29,881
76,421
3,024
6,518,177

Number of
returns

1,045
107
483
687
9,081
2,016
3,455
1,016
827
4,257
1.710
172
536
12,298
5.710
2,163
1,550
1,478
2,178
1,459
2.056
9,454
4,834
3,364
849
4,954
942
1,426
546
583
14,522
326
63,829
1,733
678
7,839
2.056
1,675
8,805
1,278
1,150
794
1,424
5,499
887
517
2,091
5,546
1,502
5,162
569
204,278

[7
Dividends
paid in
Total
Deficit 1/ cash and
compiled
assets other
receipts 7/
than own
46,174
2,677
35,138
30,795
770,795
158,040
453,822
67,243
71,329
179.968
95,744
A 49,690
• Í8 ,019
1,157,556
191,561
136.902
76,410
80,727
104.903
77,374
146,704
831,568
591.564
259.515
34,052
565,593
30.371
88,862
10,970
57,601
940,340
12,403
5,017,224
86,491
21,655
601,155
129.564
77.372
965,205
73,106
44,898
18,766
100,458
577.969
49,458
28,506
186.515
126,833
82,262
296,395
12,581
15,250,197

3,542
415
2,201
2,202

99,810
15,575
20,742
32,098
5,240
20,159
6,380
1,278
1,520
138,125
21,736
16,048
5,501
6.565
9,499
8,961
22,223
133,767
S2,891
27,185
3,558
30,207
3,515
15,516
1,704
2,517
89,514
1,154
570,089
5,679
1,447
124,084
18,267
7,806
110,110

5,545
2,455
956
8.566
59,900
3,467
3,257
17,478
15,583
7,399
54,565
1,034
1,778,S55

654
158
167
408
19,463
659
1,946
5,383
3,815
603
979
190
358
7,096
911
1,646
1,129
951
1,778
559
2,227
11,237
5,596
1,147
556
5,807
454
335
122

882
16,042
68

45,088
615
108
7,471
3,264
1,454
15,902
924
US
no
1,179
6,165
112

SIB
2,145
1,819
1 ,1 2 2

5,106
95

182,610

1
2

3
4'
5
6

7

8

9
10
11

12

13
14
15
16
17
18
19

20
21
22

23
24
25
26
27
28
29
30
31
32

33

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49

50

51

Table 2* - Corporation returns, 1941, by net income and d eficit classes, for returns with net incense and returns with no net
income: Number of returns, and net income or deficit; also, for.returns with net income: Total tax,
normal tax, surtax, declared value excess-profits tax, and excess profits tax

Net income and
deficit classes 1/

Under 1
1under 2
2 under S
3 under 4
4 under 5
5 under 10
10under 15
15 under 20
20 under 25
25 under 50
50 under 100
100 under 250
250 under 500
500 under 1,000
1,000 under 5,000
5,000 under 10,000
10,000and over
Surtax on returns with
no net income 9/
Total
No income data (in­
active corporations)

1/

Number of
returns

(Net income and deficit classes and money figures in t h o « a of dollars)
Returns with net income 1/
Taxes
Declared value
Total tax
Normal tax 8/
Surtax 9/
excess-profits
tax 3/

Net
income 1/

79,203
30, 556
19,712
14,471
12,927
\ 31,766
15,777
9,777
7,297
16,165
10,445
8,581
3,564
2,061
1,853
246
227

30,008
44,385
48,644
50,370
58,227
227,782
193,372
169,790
163,628
568,^493
736,059
1,333,121
1,250,372
1,438,504
5,845,024
1,701,016
6,252,298

4,854
7,444
8,416
8,913
10,640
44,164
41,770
39,121
40,250
172,610
261,080
507,251
504,518
583,38$
1,607,777
726,042
2,599,579

-

-

105

264,628

18,111,095

7,167,902

2,947,568

-

-

-

-

wNet income1* or "Deficit" for 1941 (as in 1940) is the amount reported for declared value
excess-profits tax computation (item 30, page 1, Form 1120) adjusted by excluding net
operating loss deduction (item 26, page 1, Form 1120)«

5,416
5,224
5,887
6,237
7,450
29,899
26,370
23,209
22,912
96,822
158,346
243,541
222,197
251,782
651,556
269,395
943,327

1,299
1,965

2,220

Amount shown as "Declared value excess-pro fits tax" for taxable years ending between July 1,
1940, and June 30, 1941, includes declared value exoess-profits defense tax; for taxable
years ending after June 30, 1941, such amount oonsists of declared value exoess-profits
tax only, the defense tax being incorporated therein.

Number of
returns

5,359,186

204,278

1,778,553

-

40,160

-

105

-

-

797,000

64,149

-

•

124,929
25,451
12'678
7'655
5,263
12,309
4,792
2,622
1,568
3,375
1,784

367
187
146
14
16

_
_
1,888

4,828
6,940
8,707
45,754
85,3S7
193,512
218,469
260,602
774,491
576,731
1,583,926

1,121

D eficit 1/

35,275
56,570
3lj096
26'539
25^ 572
86*444
58'502
45*508
34*983
118'215
124'l24
170'599
128^296
135^225
301'601
95^789
528^607

1,065
3,759
4,871
8,538
7,151
6,629
14,161
5,423
7,077

1,122

&/

Total number of returns shown includes 40,160 returns of inactive corporations,

l/

"Total compiled receipts," as tabulated, consists of gross sales (less returns and allow­
ances), gross receipts from operations (where inventories are not an income-determining
faotor), a ll interest received on Government obligations, other interest, rents and
royalties, net short-term capital gain, net long-term capital gain, net gain from sale
or exchange of property other than capital assets, dividends, and other receipts required
to be included in gross income, "Total compiled receipts" excludes nontaxable income
other than tax-exempt interest received on certain Government obligations,

8/

"Normal tax" includes #305,621,885 income and inoome defense taxes reported on returns
fbr a fiscal year ending in period July through November 1941 and on returns for a part
year beginning in 1940 and ending in 1941, the greater part of the aooounting period
falling in 1941; and #2,641,946,342 normal tax reported on returns fbr the calendar year
1941, on returns with a fiscal year ending in period January through June 1942, on re­
turns for a part year beginning and ending in 1941, and for a part year beginning in
1941 and ending in 1942, the greater part of the aooounting period falling in 1941,

9/

The surtax levied under section 15 of the Internal Revenue Code, as amended by the Revenue
Act of 1941, applies to taxable years beginning after December 31, 1940, The surtax shown
includes a small amount reported on returns with no net inoome, where receipts for the tax­
able year include interest on obligations of certain instrumentalities of the United States,
such interest being added to the net inoome for declared value exoess-profits tax computa­
tion in the process of computing the surtax net income.

The exoes8Nprofits tax shown is that imposed for taxable years beginning after December 31,
1939, by section 710 of the Internal Revenue Code as amended. For returns with taxable
year beginning in 1940, the amount tabulated is the exoess profits tax lia b ility reported
on corporation exoess profits tax returns, Form 1121, For returns with taxable year
beginning in 1941, the amount tabulated is the exoess profits tax deduction (item 35,
page 1, Form 1120) allowed in the computation of normal-tax net income,
5/ Returns filed in a State may not be a complete coverage of a ll corporations whose principal
plaoe of business is located therein, A oorporation may file an income tax return either
in the collection d istrict in whioh i t has its prinoipal plaoe of business or in the
collection d istrict in whioh i t has its prinoipal offioe or agenoy. Conversely, a tabu­
lation fbr a given State may include data from returns of corporations having their
prinoipal plaoe of business in another State,

Excess
profits
tax */

2,342
2,779
10,834
9,191
7,850
7,546
26,295
34,505
61,660
56,702
64,376
167,568
74,494
265,249

2/ Amount shown as "Income tax" for taxable years beginning in 1940 includes income defense tax;
for taxable years beginning after 1940, such amount consists of normal tax and surtax, the
defense tax being incorporated in the normal tax, (See also notes 8 and 9,)
jy

140
235
310
354
410
1,544
1,381

Returns with no net income 1/

DIVISION OP PUBLIC DELATIONS
Assignment sheet for Press Releases and oth$r publications (speeches, etcJ
Title

Check list to be used.
%

Date of releases
'^ L ft.,^ 0

4' "

_______________________

'

V*
Press Service No.

T

Process

• k t 'T s W

No. Copips ^
- a /
(

)

Spec

f

G

(

)

General

C

(

)

Customs . . . . , t ’ •

CaCo

(

)

Canadien Commodities

cfq

(

)

Coffee ouotas

....

cq

(

)

Cotton quotas

....

wq

(

)

Wheat quotas

i

*

UP
EF&T

(* )

Financial and Tax . . .

B&B

(

)

Bills and Bonds . . . .

BUL

(

)

Bulletin . . . . . . .

Dii

(

)

Debt limitation ♦ , , -

FFC

(

)

Foreign Funds Control .

NM

(

)

Net market transactions

PSp

(

)

Paul speeches .: i- .

FE

(

)

Financial Editors . . .

.

fU

SE

(

)

Editors . . . . . . . .
Press room . . . . . . . .
Door , . . . « . . . . . .

O W I .......... . r .'. v,Building distribution . .
Miss Fitzgerald, 5th FI. reap, Washington Building . . .
Mrs. Eberts, 719 Washington Building .................*
Total

Remarks :

7/

f

S i

/ r
3*
.%■o
•»?-o

TREASURY DEPARTMENT
Washington

FOR RELEASE, AFTERNOON NEWSPAPERS
Monday. February 28. 1944

Press Service
lio. 40-83

Secretary of the Treasury Morgenthau today made public the
second in the series of tabulations which will appear in the re­
port "Statistics of Income for 1941, Part 2," compiled from corpora­
tion income and declared value excess-^profits tax returns, excess
profits tax returns, and personal holding company returns.

These

data are prepared under the direction of Acting Commissioner of
Internal Revenue Harold N. Graves.
In the accompanying tabulation, selected data from corporation
income and declared value excess-^profits tax returns for 1941 are
shown by major and minor industrial groups for returns with net in­
come and returns with no net income.
The industrial classification is based on the business activity
reported op the return,

When multiple businesses are reported on a

returfi, the classification is determined by the business activity
which accounts for the largest percentage of total receipts.

There­

fore, the industrial groups do not reflect pure industry classifications.
In analyzing the data compiled from returns classified under the
major group "Insurance carriers, agents* etc.," it should be noted that
life insurance companies are required to include only interest, dividends,
and rents in gross income.

For 1941, as in prior tax years, such compa­

nies are allowed to report as deductions the earnings needed to maintain'
reserve funds required by lav/ and reserve for dividends.

The deductions

for these reserves are $47,234,125 for returns with net income and
$965,969,542 for returns with no net income.

f c f t f e ES

SS

SSSgS

S

¡3888338

88BE8ëgSS8

ESES

S

®

« - coo ^ c o h

stria i number

Corporation returns, 1941, by major industrial groups and minor industrial groups, for returns with net income and returns with no nst income: Number of returns,
to ta l ocopiled receipts, net income or d eficit, and dividends paid in cash and assets other than own stock; also, for returns with
net income; Total tax, normal tax, surtax, deolarsd value excess-profits tax, and excess profits tax

Major industrial groups and minor
industrial groups "jj , v

All industrial groups
Nlnlng and quarrying
Metal mining
Iran
Copper
Lead and sine
Gold and silver
Other metal mining
Jfet&l mining not allocable
Anthracite mining
Bituminous coal, lign ite, peat, etc.
Crude petroleum and natural gas production
Crude petroleum, natural gas, and natural gasoline
production
Field service operations
Nonwot&lUc »tiring and quarrying
Stone, sand, and gravel
Other noanetallic »tiring and quarrying
Honmetallic mining and quarrying not allocable
Mining and quarrying not allocable
Manufacturing
Food and kindred products
Bakery products
Confectionery
Canning fru its, vegetables, and sea foods
Meat producta
Grain mill products, except cereal preparations
Cereal preparations
Dairy products
Sugar
Other Tood, Including lee and flavoring syrups
Food and kindred products not allocable
Beverages
Malt liquors and malt
D istilled, rectified, and blended liquors
Mine
Nonalcoholic beverages
Beverages not allocable
Tobacco manufactures
Cotton manufactures
T extile-o ili products, except cotton
Woolen and worsted oanufactures, ineiwHi^g dyeing
«wri finishing
Rayon and silk manufactures
Knit goods
Bats, except cloth and millinery
Carpets and other floor coverings
Dyeing and finishing te xtiles, except woolen and
worsted
Other textile-mi'll products
Textile-mill products, except ootten, not allocable
Apparel and products made from fabrics
Men's clothing
Woman's clothing
Fur garments and accessories
Mlllinsxy
Other apparel and products made from fabrics
Apparel and products made fro* fabrics not allocable
For footnotes, see p. 7 .

Returns with nst income V"
Total
Taxes
number
Total
Declared
of 4
Number of compiled
Hat
Total tax Normal Surtax 6/ value
BxcaaS'
returns 2/ returns receipts 4/ income 3/
tax 5/
excess- profits
profits tax 7j
t»Jf

Returns with no net Income 3/
Dividends
Dividends
paid in
Total
paid in
cash and Number of compiled
D eficit 1/ cash and
assets
returns receipts 4/
assets
other than
other than
own stock

509,066
12,175
2,551
114
97
259
1,226
198
457
158
1,890
5,114
4,469

264,628 175,181,820 18,111,095 7,167,902 2,947,568
4,588 5,110,559
450,123 144,232
81,842
555 1,067,920
214,210
69,942
57,234
51
244,197
14,046
4,529
1,965
21
465,479
150,297
41,692
20,729
55
154,792
25,516
9,559
4,155
159
98,558
22,259
6,749
4,945
51
59,805
17,555
5,721
3,991
58
45,510
6,959
1,891
1,451
72
166,564
9,457
2,155
1,555
859
871,404
56,851
19,065
10,199
2,154
674,582
117,575
52,870
25,500
1,885
579,904
106,750
29,401
21,508

797,000
23,175
10,791
543
6,045
1,206
1,411
1,160
421
595
2,804
6,509
6,040

64,149 3,559,186 6,518,177
568
38,849
308,208
45
21,875
145^484
4
1,815
6,829
14,918
81,006
(H?
4,199
16,544
4
391
18,119
37
533
14,635
(iy
19
8,550
5
402
4,050
103
5,959
17j 955
36
2,825
1171415
12
2,041
115,607

645
1,718
1,565
550
23
944
87,166
10,082
1,765
597
1,490
982
1,105
64
1,760
161
1,825
557
5,092
564
527
159
1,999
45
264
794
4,045
502

249
94,478
10,644
5,470
2,192
960
526,269
51,915
20,150
9,511
790
225,189
52,201
12,589
5,754
98,707
160
19,481
5,746
7,485
10
2,575
254
57
51
28
5,819
555
91
66
58,042 90,555,521 10,601,566 4,945,848 1,755,534
6,220 12,851,221
660,150 252,546 129,288
918
915,018
51,989
17,460
10,900
576
459,196
48,568
19,568
9,37*
1,051 1,264,147
134,226
54,549
24,284
678 5,570,261
67,598
16,558
13,452
769 1,261,614
50,511
17,486
10,578
26
126,227
16,442
4,860
5,894
1,056 1,445,574
61,157
20,178
12,752
152
815,597
65,752
20,093
15,083
1,058
865,773
128,112
49,857
25,998
196
551,815
56,215
12,359
7,169
1,908 2,109,982
204,161
71,618
42,597
296
954,556
88,510
50,947
18,945
152
659,791
44,062
15,074
8,980
87
47,287
4,051
1,693
724
1,552
453,571
66,520
23,535
15,585
21
14,977
1,017
369
163
157 1,564,785
62,722
166,640
34,606
717 1,946,400
214,618
91,913
40,760
2,992 5,945,494
356,165 153,444
65,556
420 1,104,644
96,460
44,488
17,167

470
2,656
1,598
1,049
9
19
444,862
51,281
5,131
2,566
5,356
1,526
2,790
850
3,697
3,577
6,314
1,894
9,552
4,715
1,452
178
2,940
47
10,105
6,525
14,995
4,075

24
784
1,807
179
7,784
25^275
162
5,094
8,184
16
15j 017
Z,67S
1
15
74
(Ui)
7
49
42,@95 2,702,957 2,815,318
2,046
69,932
271,483
29
5,400
29,229
146
7,477
20,650
958
35;256
23,751
1,487
95
50,610
461
15^886
51857
1
134
10,267
131
3,597
21,522
85
3,551
30,528
97
19^428
60^635
16'919
5*251
45
515
19,577
69,585
7,257
51
52,255
95
4,547
11^874
43
748
606
155
6,877
24,560
12
148
90
8
18,003
94,639
673
44,157
41,112
2,742
72,155
67,613
22'702
'555
14j 551

204,278 15,250,197 1,778,558
5,279
789,146
7i;272
955
12;212
80j 799
45
59,934
209
5,686
54
1,361
79
4^232
i;466
531
17^578
s; 154
6; 113
84
2;258
182
7; 255
i;78S
5* 562
73
97^550
863
356;343
14^180
2,548
232; 841
56; 350
185; 684
2^224
52;65S
47,157
324
645
54^550
510
50^765
129
3*234
6
*551
195
7,064
26,389 5, 1 0 6 ;549
3,546
’665,700
788
134;198
209
25^005
382
58;752
274
179^584
500
66;985
55
Si 317
679
127;215
29
8,512
728
6S;229
124
2i;i05
984
156,228
218
93* 591
69
22,504
5,054
64
614
52;524
19
2; 775
117
19;i95
67.
19,961
972 f 16i;465
20;585
73

5,698
5^971
3*094
*865

458
155
125
28

996
171,951
2 i;239
4 ; 406
1*162
2; 238
5*161
i;5S8

20,189
Z, 017
*124
25
208
26
550

7,4

"125

2,261
1,651
4^109
*610
10,954
6; 714
*843
526
2,709
*163
1,187
Z~,06S

9^067
1,'612

465
1,292
555
119
554

517
917
207
86
598

519,784
814,002
156,155
506,S58
544,667

51,059
62,574
7,290
59,409
55,041

22,258
25,472
2,595
19,504
13,951

9,156
11,050
1,537
6,478
6,037

2,218
2,805
170
1,828
1^411

560
702
15
401
261

10,524
8,935
'672
10,797
6^242

10,515
10,473
ljs io
8^571
5^557

134
555
125
27
150

40,577
62,962
11^341
1*897
20; 331

1,685
3,264
'266
82
1,526

454
566
8,866
1,796
5,751
757
411
1,727
444

566
281
5,791
1,565
2,417
582
192

567,672
552,012
5,064,042
1,157,675
1,122,243
84,541
40,407
567,272
121,906^

57,525
28,825
154,024
60,685
52,816
1,285
684
55,215
5,541

15,685
11,693
49,511
22,702
10,929
286
117
15.898
1,878

6,905
5,256
24,210
11,259
5,708
187
79
5,985
1,014

1,282
1,205
5,148
2,205
1,541
68

226
222
1,090
451
245
5
2
343
45

7,272
5,009
18,862
8,807
5,635
28
15
5,728
652

10,318
6,519
24,095
11,909
4,693
'101
77
6,844
472

60
72
2,980
417
1,270
572
218
554
149

5,479
8,495
503,157
48,836
157,249
54;477
17,944
33,670
12,982

420
312
8,146
1,778
5,844
'782
588
991
364

1*1*
281

n

1,545
167

'

182,610
i s ;« «
2;iS4
501
5
529
154
1,157
8
155
2,716
8*452
7 ; 995

z

152
654
320
214
104
54

56
15
5
158
485
2.218

!
3
t
X

l
2
S
4
6
6
7
8
9
10
11
12

15
14
15
16
17
18
19
20
21
22
25
24
25
26
27
28
29
50
51

fed

52

82
175

55
54
55
56
57

1
1 ,473

471
IS
272
26
57
(U4

8

180

58
59
40
41
42
45
44
45

60
61
68
65
64
65
66
67
68
69
70
71
78
75
74
75
78
77
78
79
80
81
88
85
84
85
86
87
88
89

Por footnotes, see p. 7 ,

58,196
15,868
15,041
5,889
678
64,640
46,816
18,485

18.780
7,059
9.848
1,600
855
88.597
80,889
7,508

8,818
1,478
: 886
447
66
5,560
5.978
1,581

799
468
105
85
147
597
172
884

9,857
6.875
8,868
1,097
885
50,287
21,177
9,111

87,955
8,086
17,602
1,877
570
55,868
88,624
7,858

685
54
886
177
6
119

8,751
1,957
814
4,585
1,951
480
580
19
1,580

1,984
1,516
606
5,005
1,457
854
585
12
846

1,445,145
1,086,861
558,868
1,704,155
877,900
66,105
816,676
59,569
416,780

167,580
155,886
51,956
148,865
75,589
4,594
16,586
4,858
55,864

71,166
56,666
14,496
58,844
51,695
1,655
6,846
1,750
15,786

89,157
25,989
5,887
85,487
15,558
855
8,955
1,014
6,580

7,752
6,586
1,406
5,994
8,984
211
691
898
1,611

815
658
178
.1,245
796
57
69
57
160

55,468
85,775
7,688
85,579
14,619
558
8.554
581
5,655

115
8,889
457
1,767
85
11,448
8,584
960
799
5,569
1,757
1,999
6,878
988
805
8,507
6
500
878

71
1,898
584
1,494
14
6,801
1,445
481
565
8,068
996
860
4,887
706
181
1,855
6
818
188

67,504
6,198
8,755,548 555,895
1,585,585 804,859
1.550.546 149,969
81,680
1,068
8,885,476 814,595
808,771
99,650
508,606
89,899
17S,887
15,169
568,908
48,906
818,964
17,869
156.947
9,100
6,584,061 1,087,952
854,955
66,186
609,088
61,176
778,588 148,561
141,557
89,095
805,568
18,670
58,861
510,514

5,154
159,809
98,450
70,758
681
69,597
50.697
11,059
4,589
14,947
5,886
8,700
465,109
86,158
15,588
57,819
15.697
6,568
15,884

890
59,955
54,860
85.617
156
40.618
19,185
5,599
5,086
7,941
5.848
1,758
170,565
15,447
11.598
86.781
5,864
5,675
6,145

859
15,519
8,789
6,685
46
11,475
5,555
1.605
717
8,854'
841
S85
45.548
8,055
5,518
7,585
1,658
988
1,418

146
1,490
555
957
Ü ií
S7S
96
58
17
157
41
46
1,985
885
11
867

95
665
1,179
781
665
458
811
8
5,565
465
801
881
459
105
848
594
76

66
519
740
488
418
879
151
8
8,155
804
515
164
SIS
88
551
885
55

118,189
8,849,478
457.947
480,505
6,618,904
6,848,644
568,915
1,544
8,815,815
88,657
855,688
147,451
707,959
877,850
895,481
489,961
15,469

18,068
846,516
54,044
40,061
157,098
185,197
15,887
7
159,580
595
18,897
5,896
45,584
81,855
17,459
55,558
577

5,587
77,040
11,058
12,458
88,587
88,595
6,787
- 5
59,948
849
5,448
8,785
17,915
11,581
7,269
14,650
199

948
81,565
8.979
5,887
85,440
85,965
1,4758
16.549
74
1,459
708
5,005
5,504
1.605
4,178
47

81,954
516,851
68,879
79,571
556,888
588,919
55,554
89
546,059
1,459
50,804
14.584
101,505
56,812
89,498
101,087
1,058

111

184,565
87,855
85,485
15,568
519
16.748
8,588
14.560

5,044
1,559
5,102
572
U
5,055
157
2,919

51,601
46,098
5,505
50,418
15,111
705
5.854
8,549
10,270

717
586
191
1,857
445
180
125
5
445

81,551
61,021
80,550
95,665
59,945
10,640
15,878
428
28.748

7,482
6,589
892
5,646
8,784
588
678
17
1,722

768
91.591
58,058
55,094
845
88,505
49,564
15,578
6,17*
11,860
5,084
8.854
556,940
19.568
80,140
58,509
10,888
5,659
7,507

41
SU
49
855
7
4,950
1,091
457
577
1,896
716
995
8,561
195
71
1,161

8,644
50,515
88,784
85,874
1,717
596,470
150,789
69,409
55,899
78,594
58,911
56,488
129,545
10,60«
5,881
40,419

124
5,974
2,654
1,149
191
25,697
8.968
4,242
2,068
2.969
2,579
5,100
10,642
805
415
5,914

26
1
25
1
1,201
571
22
528
52
87
141
885
15

812
145

1,860
98,866
54,828
57,618
480
16,989
5,868
5,797
510
4,684
1,756
570
847,011
10,578
595
85,847
6.875
1.554
5,575

75
80

6,165
81,584

497
851

28
58

867
546
851
888
288
98
196

7,550
147,566
19,808
84,095
88,976
16,547
6,450

4,801
177,569
14.568
18,760
888,659
877,054
11,605

28
117
596
246
807
145
' 68

1.560
15,589
84,555
7,586
282,757
270,509
12,826

184
2,514
1,821
861
6,154
5,198
956

12
464
21
4,826
4,626

654
14
59
66
118
56
60
885
8

88,489
58
5,557
8,408
88,554
6,955
8,505
56,478
128

107,784
824
8,800
5.591
58,647
85,586
11,445
81,155
800

1,185
849
866
50
156
15
871
99
57

87,447
14,898
25,920
5,648
10,145
6,050
12,725
11,423
2,660

8,566
2,024
2,67C
54!
551
70(
1,086
96»
286

645
468
14
27
1
50
15
71

647
580
67

8838

94,658
57,809
46.584
9,681
1,418
155,578
111,684
41,695

594
594
5, SU
5,507
4
155
89
55

8

U

88

1.655.546
494,098
944,690
801,889
15,589
1,678,794
1,506,676
578,118

88

1,568
875
698
570
81
419
45
576

S38SS

8,105
580
995
751
87
548
58
496

paid in
cash and
asssts
other than

291

888

59

Dividends
Declared
paid in
Total
Normal
vaine
Excess sash and Number of eeapilsd
Deficit
tax £/ Surtax §/ excess- profits assets
returns reeeipts jj
profits tax 7/ other than

838888

54
55
56
57
58

Hat
Total tax
Incase {/

233338

58
55

¡/

Total
Number of compiled
returns receipts

3333

50
51

Manufacturing - Continued
Leather and products
Leather, tanned, curried, and finished
Footwear, except rubber
Other leather products
Lsather and products not allocable
Rubber products
Tires and inner tubes
Other rubber'products, including rubberised fabrics
and clothing
Lusher and timber basic products
Logging camps and sawmills
Planing mills
Furniture and finished lumber products
Furniture (wood and metal)
Partitions and fixtures
Wooden containers
Matches
Other finished lumber products, lnolndir^ earfc
products
Furniture and finished lumber products not
Paper and allied products
Pulp, paper, and paperboard
Pulp goods and converted paper products
Paper and allied products not
Printing ana puolishing industries
newspapers
Periodicals
i
Books and music
Coansrdal printing
Other printing and publishing
Printing and publishing industries net allocable
Chemicals and allied products
Paints, varnishes, and colors
Soap aid glycerin
Drugs, to ilet preparations, etc.
Rayon (raw material) and allied procbiots
Fertilisers
Oils, animal and vegetable, except lubricants and cook­
ing oils
Plastic materials
Industrial chemicals
Other chemical products
Chemicals and allied products not
Petroleum and coal products
Petroleum refining
Other petroleum and coal products
Petroleum and oeal products not alloosbls
Stone, clay, and. glass products
Cut-stone products
Structural day products
Pottery and poreelain products
(Hass and glass produets
Caasnt
Concrete and gypsum products, sailboard
Abrasives and asbestos products
Stone, day, and glass products not alloosbls

_____________(Money figures in thousands of dollars)
Returns with net income 5/

P8S

«¡6
47
48
49

Ibjar Industrial grasps and minor
industrial groups y - Continued

Total
numbsr
of
returne

88388S88

fe
1
1

s«ri«i number

Corporation returns, 1941, by aajor industrial croups and ilnor industrial groups, for returns with net lu c e s and returns with no net inoonet * «* * * of return* ■
total ooaplled receipts, net inoone or deficit, and dividends paid in cash and assets other than own stock; also, for returns with
net Inooaat Total tea, normal tax,, surtax, declared value exoess~profits tax, and excess profits tax - Continued

y
groupa ana minor inanatr ia l groupa, fer ratnma with net income and returns with no nat incornai Number of retorna,
total compiled receipts, net inoome or d e ficit, and dividends paid in oaah and aaaeta other than own stock; also, for retoma with
net incornai Total tax, normal tax, surtax, declared vaine excess-profits tax, apd excess profits tax - Continued
(Money figures in thousand« of dollnrel

fc
i
0
H
«j
©
C
Q

90
91
92
95
94
95
96
97
98
99
100
101
102
105
104
105
106
107
108
109
110
in
112
ns
U4
115
U6
U7
118
119
120
121
122
125
124
125
126
127

Major industrial groups and minor
industrial groups^-Continued

Manufacturing —Continued
Iron, steel, and products
Blast fernaces and rolling wtn«
Structural steel, fabricated; ornamental metal work
Tin cans and other tinware
Hand tools, cutlery, and hardware
Heating apparatus, except electrical, and plumbers'
supplies y
Other iron, steel, and products (not classified below)
Iron, steel, and products not allocable
Nonferrous metals and their products
Nonferrous metal basic products
Clocks and watches
Jewelry (except costume), silverware, plated ware
Other manufactures of nonferrous metals
their
alloys
Nonferrous metals and products not allocable
Electrical machinery and equipment
Electrical equipment for public u tility , manufacturing,
mining, transportation (except automotive), and
construction use
Automotive electrical equipment
Communication equipment and phonographs
Electrical appliances
Other electrical machinery fln^ equipment
Electrical machinery and equipment not allocable
Machinery, except transportation equipment ««rf
electrical
Special industry machinery
General industry machinery
Metal-working machinery, includir« maniriw» tools
Engines and turbines
Construction and »iwing machinery
Agricultural machinery
Office and store machines
Household end service—industry machines
Machinery, except transportation equipment and
electrical, not allocable
Automobiles and equipment, except electrical
Automobiles and trucks (including bodies and
industrial trailers) and military vehicles
Automobile accessorise, parts (except electrical),
and passenger trailers
A
Automobiles and equipment, except electrical, not
allocable
Transportation equipment, except automobiles
Railroad and railway equipment
Aircraft and parts
Ship and.boat boildli«
Motorcycles and bicycles
Other transportation equipment, except automobiles
Transportation equipment, except automobiles, not
allocable
Other manufacturing
Manufacturing not allocable
For footnotes, see p. 7,

Total
number
of
returns

Z/

__;______ i.w-____ :___ Taxes_______ _
Total
Declared
lumber of compiled ! \ - 'Met v; Total tax Normal
value
Excess
returns receipts £/ inoome ¡/
tax §/ Surtax 6/ excess- profits
profits tax y

______ í ■turns with no net luco T» */
Dividends
paid in
Total
paid in
sash and Number of compiled
Deficit £/ cash and
asSata
returns receipts 4/
other than
ether than

6,460
148
844
84
782
1,255

5,254 11,629,675 1,540,754
128 5,165,592 697,0S8
688
506,907
61,044
68
520,525
55,767
606
522,259
91,758
907 1,260,956 160,155

795,457
504,755
51,906
25,404
47,429
80,076

240,528
95,517
9,180
9,675
14,535
25,872

65,400
27,521
2,555
2,796
5,808
6,885

9,826
1,895
676
10
1,050
906

479,905
179,805
19,518
12,922
28,258
46,412

275,064
106,757
6,104
19,807
20,920
52,755

1,066
15
147
IS
154
315

122,896
679
7,042
484
56,924
50,952

8,293
414
546
24
1,745
2,725

5,107
240
2,669
276
95
619
1,668

2,665
192
1,968
217
69
445
1,228

5,457,125
216,515
2,854,706
1,199,614
140,460
220,871
1,084,152

540,076
26,927
580,769
142,055
16,568
20,405
176,186

295,555
12,572
189,776
71,827
8,679
8,818
88,870

81,281
4,470
59,997
22,765
3,589
5,650
26,055

20,799
1,058
16,662
6,491
944
1,054
6,999

5,009
282
1,075
179
65
204
566

186,247
6,762
11£,021
42,592
4,281
5,950
56,251

84,681
4,065
85,721
36,808
5,045
5,782
51,574

586
58
637
44
22
170
400

44,225
5,492
58,786
26,978
854
10,852
20,057

2,658
181
5,748
556
62
541
2,987

15
1,750
655

11
1,251
528

189,610
5,720,695
1,684,540

25,577
666,424
555,590

11,581
567,621
194,525

4,160
98,556
‘55,189

1,214
27.591
15.591

60
1,756
959

6,148
259,918
124,985

4,511
145,991
77,288

445
99

86
52,807
7,276

(13/
5,593
515

94
598
171
512
140
5,972

68
272
102
184
97
4,622

156,611 ’ 25,674
948,865 141,815
182,009
24,879
204,992
25,856
545,877
94,629
7,187,568 1,525,065 _

12,984
82,190
12,086
11,174
54,666
699,058

4,082
19,009
4,529
4,068
15,679
210,819

1,076
5,298
1,216
1,188
5,425
47,748

28
525
184
145
119
6,865

7,798
57,560
6,557
5,776
57,444
455,606

7,900
25,878
8,117
6,485
20,525
255,420

21
loe
64
116
55
1,177

.5,108
9,981
6,254
5,152
1,076
85,702

552
1,171
881
550
124
6,718

1,175
1,647
1,146
99
458
526
247
592
482

881
1,278
1,012
75
556
214
158
250
400

724,472
1,529,455
1,495,600
522,147
756,978
996,961
467,591
418,141
478,225

109,988
275,521
418,456
61,157
127,587
152,100
80,506
45,464
74,525

45,952
151,697
258,957
55,447
65,840
49,511
58,655
16,099
59,121

19,998
41,150
56,297
9,859
21,054
28,555
14,149
8,656
11,560

4,521
11,216
14,427
2,070
5,256
2,291
5,644
1,642
2,681

859
1,525
2,417
661
570
120
102
146
468

20,575
97,808
185,796
20,856
58,979
18,565
20,738
5,676
24,612

31,982
55,896
49,648
5,620
24,175
58,411
25,060
17,512
9,517

274
529
117
15
90
89
71
117
75

25,944
17,450
8,552
1,859
7,476
5,854
4,096
11,668
5,085

2,172
1,267
467
110
561
587
645
841
471

775
554

546
254

6,542,757
5,408,862

864,547
674,724

459,780
555,617

155,566
104,989

56,502
29,990

5,195
776

266,717
197,865

257,076
225,066

195
91

45,071
56,470

425

502

1,122,677

187,725

104,767

28,142

6,445

2,420

67,768

88,912

98

16

10

11,219

2,099

1,406

256

69

(li)

1,102

97

927
112
282
478
25
28
2

575
81
162
292
18
19
1

5,885,455
796,262
2,007,489
1,024,844
51,149

424,548
75,798
294,145
53,868
2,429
505
5

106,496
20,049
67,702
17,471
1,156
115
5

25,752
5,808
15,116
4,628
168

292

726,854
154,572
481,558
104,646
5,555
685
18

. 2,521
1,282
756
481
16
6
(H )

291,778
46,668
212,591
61,289
1,090
151

4,285
2,887

2,669
1,599

1,557,551
822,254

215,254
89,028

100,688
40,156

55,265
14,559

9,655
5,940

1,205
1,552

54,587
20,545

'

1,425
580
491
26
320

(3i
IS
28

I

90
91
92
95
94
95
96
97
98
99

100

101

20
8

102

2
9

105
104
105
106
107

1
505
530
19
(U/
no
6

108
109
110

111
112

7
(U/

115
114
115
116

5,494
2,755

7
7

117

8,555

745

(Ü )

4

246

16

94,177
2$,975
56,824
12,748
1,464
168

277
25
87
151
6
7
1

44,856
9,966
19,526
14,805
189
171
400

6,166
585
4,264
1,197
47
52
22

59,476
16,991

1,509
893

76,575
50,715

7,252
4,790

118
119

48
120

9

121
122

59

125
124
125

122
395

i£6
127

Corporation return«, 1941, Igr naJor indoatriml groups and ninor industrial groups, for returns with net income and returns with no net incomes Hum
to tal compiled receipts, net income or d eficit, and dividends paid in cash and assets other than own stock; also, for returns with
net incomes Total tax, normal tax, surtax, declared value excess-profits tax, and excess profits tax - Continued
vmvaamj

Major Industrial groups and Minor
industrial groups j/*Contirmed

129
150
151
152
155
154
155
156
157
158
159
140
141
142
145
144
145
146
147

149
160
151
152
155
154
155
156
157
158
159
160:
161
162
165
164
166
166
167
168
169
170
171
17«
175

Public u tilitie s
' '
•
Transportation
Railroads, snitching, terminal, and passenger car
Berries companies
Railway express companies
Railways, street, suburban, and interurban, Including
bus lines operated In conjunction therewith
Taxicab companies
. Other highway passenger transportation
Highway freight transportation, warehousing, and
storage
Air transportation and allied services
Pipe line transportation
Water transportation
Services incidental to transportation
Transportation not allocable
Comnnication
Telephone (wire and radio)
Telegraph (wire and radio) and cable
Radio broadcasting and television
Other comunication
Other public u tilitie s
Electric light and power
Gas, distribution and manufacture
Water
Public u tilitie s not elsewhere classified
Other public u tilitie s not allocable
Trade
Wholesale
Commission merchants
Other wholesalers
Food, including market milk dealers
Alcoholic beverages
Apparel and dry goods
Chemicals, paints, and drugs
Hardware, electrical goods, plumbing and heating
equipment
lumber and millwork
Wholesalers, not elsewhere classified
Wholesalers, not allocable
Retail
General merchandise
Department, dry goods, other general merchandise
Limited-price variety stores
Mail-order houses
Food stores, including market milk dealers
Package liquor stores
Drug stores
Apparel and accessories
Furniture and house Ihrnishiags
Eating and drinking plaoee
Automotive dealers
Automobiles and trucks
Accessories, parts, etc.
Filling stations
Hardware
Building materials, fuel, and ice
Other re ta il trade
\
Retail trade not allocable
Trade not allocable
For footnotes, see p. 7,

Total
number
of

Rumbar oi
returna

Total
.
compilad
Net
receipts 4/ income 5/ fetal tax

12,985 14,175,762 2,081,267
8|587 8,405,941 912,859
410 5,262,079 464,579

1,174
775
1,756
215
157
141,620
58,418
5.605
52,81S
6,649
1,575
5,025
1,585
2,822
1.150
15,959
2,256
86,120

6,659
5,940
572
247
7,116
1,805
5,568
11,424
5,551
10,576
10,588
9.606
982
2,685
2 ,6 8 8

8,524
8,287
5.151
17,082

i

«

Taxes
Normal
tax 5/ Surtax

§/

705,185
508,561
140,609

416,504
171,259
84,408

120,172
48,88C
24,660

77

205
199,690

24
U ,644

2,906

5
2,126

618

524
1,029
4^478

70,295
506,279
846,964

4,158
50,022
55,766

1,220
17,564
17,095

766
9,717
10,180

197
2,778
2,920

279
155
1,022
727
87
1,951
1|502
21
428

164,609
295,928
1,005,510
252,580
24,205
1,668,850
1,547,754
145,970
175,106

25,567
87,415
172,060
41,692
1,955
518,566
271,697
12,67*
55,998

8,555
29,988
74,091
16,140
589
115,249
97,147
4,428
15,674

S,024
19,666
50,841
8,212
516
65,445
56,512
2,440
6,495

2,447 4,100,991 850,042
780 5,148,455 686,017
487
845,157 140,075
1,007
85,159
20,605
114
11,250
1,584
59
11,010
1,965
89,475 55,252,745 2,222,556
27,491 25,917,726 964,185
5,577 1,196,086
79,066
25,914 24,721,640 885,119
4,421 5,055,755 115,976
908 1,151,005
28,852
2,529 1,728,240
82,572
í , 054 1,258,865
51,596
2,521 2,256, 885 117,799

281,575
227,859
46,562
6,172
415
566
865,258
588,950
51,715
557,257
40,710
8,888
54,575
20,002
55,445

925
620,509
24,428
10,565 11,227,525 410,509
1,595 1,464,886
55,787
51,444 25,285,285 1,061,870
4,469 6,915,029 609.767
4,127 5,641,967 402,487
222 1,116,057
98,907
120
157,025
8,575
5,088 4,586,080
87,244
900
76,121
1,559
2,605
585,989
25,789
7,298 2,150,751 104,641
5,885
977,145
67,675
5,885
567,478
22,568
7,668 4,176,290 100,447
7,012 5,855,442
78,986
646
522,848
21,461
1,409
518,164
14,905
1,828
206,257
9,722
5,646 1,255,428
52,882
5,240 1,017,855
55,171
5,565
691,717
21,524
10,540 4,051,756 196,501

9,220
169,618
18,981
405,876
221,255
176,081
42,144
5,029
29,779
521
6,83,9
56,797
19,019
6,317
57,074
26,964
10,110
5,196
2,964
15,252
19,499
5,806
68,411

Declared
value
Excess
exeess- profits
profits tax 7/
1,075
960
41

__ ______ Beturns with no n et Innm
paid in
Total
cash and Number of compiled
Deficit ¡J
assets
returns receipts 4/
other than

167,454 1,076,225
87,462
544,541
51,500
148,269

8,956
5,954
'250

1,772,816
l ) 560j 557
*762) 676

154,062
122^415
49)540

4
161

20
4,208

80

155,662
245,156

56,052

15
75
210,

242
4,795
5,780

1,145
17,647
14,079

501
692
5,028

20,909
55^840
176j 500

9)770

1,595
5,696
8,186
2,541
86
19,000
16,498
711
1,792

156
2
254
216
5
54
15
1
18

1,998
4,620
54,810
5,571
185
50,770
24,122
1,277
5,571

2,728
76,170
59,457
20,498
520
201,445
181,962
5,154
14,548

561
48
485
619
69
1,767
1,525
47
195

. 28,455
26j 454
79*448
46*254
5*324
SOj116
15)905
26)550
7*884

1,856
9^574
6*980
3,596
*402
7,048
1^886
4^155
l)027

179,800
145,875
28,997
4,256
275
417
594,115
167,518
12,100
155,418
21,500
5,875
15,791
10,056
19,419

52,292
42,484
8,555
1,251
81
122
106,122
42,120
5,161
58,959
5,664
826
5,065
2,411
5,582

79
40
20
10
6
5
15,058
9,500
580
9,120
945
85
5,517
299
1,525

49,202
59,460
8,991
676
51
24
547,943
169,811
16,072
155,740
12,600
2,102
14,202
7,257
29,517

550,240
429,250
86,244
12,929
658
1,178
677,490
216,599
21,654
194,965
51,495
4,357
12,249
14,665
20,255

1,255
281
259
559
95
43
49,228
10,141
1,909
8,252
2,087
417
652
489
455

162,145
71j 512
6o)511
14j 888
14)269
*965
4,525,671
l ) 726)122
*161* 358
1,564)784
'579)869
85j 896
52¡096
58j 621
78j 056

24,599
15^183
7^169
2^687
1^265
295
142,336
60 )665
5^890
56)772
6^922
1*647
2*176
1*566
28)844

4,082
71,400
9,515
189,905
95,042
71,825
19,497
1,722
17,245
211
4,402
18,569
10,578
4,027
16,119
12,549
5, 570
2,814
1,504
9,160
9,156
5,479
56;692

1,026
18,075
2,510
55,652
26,597
20,466
5,667
464
4,941
68
808
5,009
2,951
1,055
4,715
5,688
1,025
824
462
2,615
2,568
1,062
10,550

158
2,574
417
4,147
1,187
826
541
20
114
18
91
445
589
91
514
445
69
56
129
420
512
205
1,410

5,954
77,569
6,758
158,175
100,427
82,965
16,659
823
7,480
25
1,519
12,976
5,501
966
15,728
10,282
5,446
1,522
669
5,057
7,265
1,060
19,959

4,697
90,782
16,511
296,192
158,157
115,1B5
42,200
2,774
58,099
114
7,995
21,787
8,990
7,221
18,925
14,555
4,568
4,947
2,514
14,590
8,705
4,155
64,699

202
5,541
589
55,101
1,971
1,709
159
125
5,822
882
2,652
5,946
1,595
6,501
2,728
2,598
550
1,211
845
2,758
2,925
1,487
5^986

19,567
584)582
126,298
2,506,256
105j 419
95)775
4 ] 204
5 ! 440
506,952
58,252
115,199
184j 241
76,451
540,169
414*585
598)257
16)545
6l)056
25)144
211)249
158)748
94^812
489)513

449
12,924
2^244
65)678
5^555
4^776
235
522
11,042
'916
2,815

-

941
5,742

6)911

5^524
l l ’ 055
5^105
4¡468
655
1,512
1*058
6*765
6*976
2*694
15)995

..........
Dividends
paid in
cash and
assets
other than
10,407
4*848
'£¿4
129
1,840 150
151
325 152
198 155
5 154
1,8X0 155
47 156
452 157
158
406
504 159
100 140
2 141
142
5,152
2^565 145
*911 144
1,861 145
16 146
1 147
9,615
7,086
*400
6,686
1*709 149
46 150
52 151
52 152
5,426 155
7 154
1,400 155
14 156
2,011
*294
294 157
158
159
258 160
o i i 161
55 162
56 165
43 164
70 165
169

164
6
54
21
699
255
61
, 518

166
167
168
169
170
171
172
175

Corporation ra ta « » , 13*1, by aajor indnatrlal group* and minor industrial groups, for returns with net income and returns with no net income. Number of returns
total oompiled receipts, net income or d e ficit, and dividends paid in cash and assets other than own stock, also, for returns with
’
net income, Total tax, normal tax, surtax,, declared value excess-profits tax, and excess profits tax - Continued

Major industrial groups and minor
industrial groups!/-Continued

175
176
177
178
179
180
181
182
185
184
185
186
187
188

189
190
191
192
195
194
195
196
197
198
199
200
201
202

205
204
205
206
207
206

Service
Hotels and other lodging places
Personal service
Laundries, cleaners, and dyers
Photographic studios
Other personal servioe
Personal service not allocable
Business service
Advertising
Other business servioe
Business service not allocable
Automotive repair services and garages
Miscellaneous repair services, hand trades
Motion pictures
Motion-picture production
Motion-picture theatres
Amusement, except motion pictures
Other service, including schools
Servioe not allocable
Finance, Insurance, real estate, and lessors of real
property
Finance
Banks and trust companies
Long-term credit agencies, mortgage companies,
except banks
Short-term credit agencies, except banks
Sales finance and industrial credit
Personal credit
Other short-term credit agencies
Short-term credit agencies, except banks,
not allocable
Investment trusts and investment companies 8/
Management type
Fixed or semifixed type
Installment investment plans and guaranteed faceamount certificates
Mineral, o il, and gas royalty companies
Investment trusts and investment companies not
allocable
Other investment companies, including holding companies
Holding companies 9 /
Operating-holding companies 10/
Security and conaodity-exchange brokers and dealers
Other finance companies
Finance not allocable
Insurance carriers, agents, etc.
Insurance carriers
Life insurance companies
Mutual insuroice, except life
Other insurance carriers
Insurance agents, brokers, etc.
For footnotes, see p. 7.

Total
number
of
returns 2/

44,046
5,210
9,542
5,006
576
5,745
15
7,757
2,044
5,691
22
5,657
1,656
4,552
596
5,956
5,555
6,120

219
155,668
59,741
16,819
5.474
5,448
2,296
2,248
295
609
5,991
624
178
5?
155
2,984
2,411
1.274
1,157
1*847
2,085
5,668
8,590
2,116
776
557
985
6.474

Corporation returns, 1941, by major industrial groups and minor industrial groups, for returns with net income and returns -with no net incomes Number of returns,
total compiled receipts, net income or d eficit, and dividends paid in cash and assets other than own stock; also, for returns with
net incomes Total tax, normal tax, surtax, declared value excess-profits tax, and excess profits tax - Continued

Uajor industrial groups and minor
industrial groups^/-Continued

222

225
224
225
226
227
228

Finance, insurance, real estate, and lessors of real
property - Continued
Real estate, including lessors of buildings
Owner operators and lessors of buildings
Lessee operators of buildings
Owners for improvement
Trading for own account
Real estate agents, brokers, etc.
Title abstract companies
Real estate, including lessors of buildings,
not allocable
Lessors of real property, except buildings
Agricultural, forest, etc, properties
Mining, o il, etc. properties
Railroad properties
Public-utility properties
Other real property, except buildings
Lessors of real property, except buildings,
not allocable
Construction
General contractors
Special trade contractors
Construction not allocable
Agriculture, forestry, and fishery
Agriculture and services
Forestry
.Fishery
Nature of business not allocable, except trade

Returns with net income 5/
Total
number
Total
Declared
of
Number of compiled
Net
Total tax Normal
Excess
value
returns 2/ returns receipts 4/ income 5/
tax 5/ Surtax 6/ excess- profits
profits tax 7/
tax

97,291
68,224
2,208
11,505
2,855
5,207
1,578
7,958

55,861
29,009
825
1,605
825
1,464
705
1,452

1,085,116
824,915
5$,769
91,487
12,711
51,990
25,478
44,769

171,661
141,495
2,869
7,257
2,988
4,945
5,648
8,481

59,975
55,266
655
1,729
650
1,167
928
1,618

28,126
25,742
451
1,071
594
781
592
1,094

8,478
7,150
151
508
126
251
198
555

461
285
8
44
25
27
12
62

2,909
2,112
45
505
84
108
126
129

75,102
6l'599
1,189
1,619
1,449
1^254
2,254
5^758

55,245
57'860
1^557
9',185
1,689
1,529
"600
5,045

959,156
774;575
54,556
79^574
12^698
19,197
4*157

8,046
1,420
5,174
559
255
2,554
544

5,027
487
1,569
204
112
541
114

221,182
7,004
90,580
87,588
25,584
4,815
5,614

114,895
2,648
45,578
52,090
10,279
2,057
2,261

56,699
647
14,819
16,957
5,195
511
591

24,757
458
9,554
11,685
2,556
561
586

7,198
141
2,741
5,405
685
114
115

55
20
18
7
(lii
5
4

4,690
27
2,526
1,844
176
51
86

95,572
1^055
47j 219
56'944
5,598
l'066
l'695

4,162
857
1,425
"lOl
106
1,498
175

16,012
6,888
8,571
555
8,415
7,527
549
557
22,529

8,205
5,567
4,514
122
5,944
5,595
202
149
2,176

5,089,455
2,111,997
947,558
50,120
650,777
586,997
14,466
29,514
154,765

199,564
144,850
52,985
1,751
81,747
76,775
2,807
2,165
16,549

82,067
60,069
21,529
669
22,945
21,478
719
749
5,140

51,925
25,554
8,145
224
14,556
15,685
480
571
2,850

8,695
6,264
2,561
70
4,088
5,845
157
106
799

2,215
1,509
882
25
590
517
15
59
115

59,256
28,945
9,941
552
5,752
5,450
88
215
1,596

51,981
25^565
6,544
74
50,855
28,805
1,621
429
6,119

2,770
5^805
"220
5,957
5^505
'294
158
5,125

6 ,795

1/

The Industrial classification is based on the business activity reported on the return.Nhen multiple businesses are reported on a return, the olassifioation is determined by
the business activity whloh aooounts for the largest percentage of total reoeipts.
Therefore, the industrial groups do not reflect pure industry classifications.

Z/

Total zunber of returns shown inoludes 40,160 returns of inactive corporations.

i/

"Net income" or "Deficit" is the amount reported for deolared value exoess-proflts tax compu­
tation (item 50, page 1, Form 1120) adjusted by excluding net operating loss deduction
(item 26, page 1, Font 1120).

4/ "Total compiled reoeipts," as tabulated, oonsists of gross sales (less returns aid allowances),
gross receipts from operations (where inventories are not an inoome-deteraining faotor), a ll
interest reoeived on Government obligations, other interest, rents and royalties, net short­
term capital gain, net long-term oapital gain, net gain from sale or exohange of property
other than oapital assets, dividends, and other receipts required to be included in gross
inoome. "Total compiled reoeipts" exoludes nontaxable income other than tax-exempt interest
reoeived on oertain Government obligations.
6/

Returns with
Dividends
Dividends
paid in
Total
paid in
cash and Number of ccapiled
Deficit 5/ cash and
assets
returns receipts 4/
assets
other than
other than
own stock

"Normal tax" inoludes $505,621,885 inoome and inoome defense taxes reported on returns for a
fiscal year ending in period July through November 1941 and on returns for a part year be­
ginning in 1940 and ending in 1941, the greater part of the accounting period falling in 1941;
and $2,641,946,542 normal tax reported on returns for the oalendar year 1941, on returns with
a fisoal year ending in period January through June 1942, on returns for a part year beginning
and ending in 1941, and for a part year beginning in 1941 and ending in 1942, the greater part
of the aooounting period falling in 1941.

55^000

267,760
200,664
4,511
15,979
11,500
1,424
205
55,879

15,554
10^278
65
617
1,687
10
16
865

54,411
5,205
12^584
14^454
1^950
1,724
715

50,149
5,617
9* 364
5 '294
2*865
6*548
*460

"l45
1,250
295
152
19
8

440,479
269^785
162^560
8*155
121^840
110^954
5'755
5'151
58,647

21,685
15,782
7*440
*461
18,624
15^491
4^475
'660
58,517

1,846

1,247
1*027
"215
5

1,571
481
890
(U J

10,101

6/

The surtax levied under seotion 15 o f the Internal Revenue Code, as amended by the
Internal Revenue Code, as amended by the Revenue Aot of 1941, applies to taxable
years beginning after Deoamber 51, 1940. The surtax shown inoludes a small amount
reported on returns with no net inoome, where reoeipts for the taxable year include
interest on obligations of oertain instrumentalities of the United 8tates, suoh
interest being added to the net inoome fbr deolared value excess-profits tax
computation in the prooess of computing the surtax net income.

2/

The excess profits tax shown is that imposed by seotion 710 of the Internal Revenue
Code as amended and should not be confused with the deolared value exoess-proflts
tax. For returns with taxable year beginning in 1940, the amount tabulated is the
excess profits tax lia b ility reported on corporation excess profits tax returns,
Fora 1121. For returns with taxable year beginning in 1941, the amount tabulated
is the exeats profits tax deduction (item 56, page 1, Fora 1120) allowed in the
computation of normal-tax net Inoome.

8/ The industrial group "Investment trusts and investment companies" oonsists o f oor- poratione which derived 90 peroent or more of reoeipts from investments
which
at no time during the taxable year had investments in corporations in whioh they
owneT 50 peroent of mors o f the voting stook.
9/ The Industrial group "Holding oompanies" oonsists of corporations whioh derived 90
peroent or more of reoeipts from investments and idiioh at some time during the
taxable year had investments in corporations in ihioh they owned 50 peroent or
more o f the voting stook.
10/ The industrial group "Operating-holding companies" oonsists of corporations whioh
derived less than 90 peroent but more than 50 peroent of reoeipts from investments.
11/ Less -than $500.

225
226
227
228

TREASURY DEPARTMENT
Washington
/
FOR RELEASE, MORNiNG NEWSPAPERS
Wednesday. March X« 1944

Press £ vice
No . 40—84

Secretary of the Treasury Morgenthau today made public the third
in the series of tabulations which will appear in the report ^Statistics
of Income for 1941, part

Zt n

compiled from corporation income and de­

clared value excess-profits tax returns, excess profits tax returns,
and personal holding company returns.

These data are prepared under

the direction of Commissioner of Internal Revenue J o seph-Dv" Wunan, Jr •

,

The following table shows data from corporation income and de~
d a r e d value excess-profits tax returns for 1941, classified by major
industrial groups.

Items tabulated include number of returns, items

of compiled receipts and compiled deductions, compiled net profit or
net loss, net income or deficit, net operating loss deduction, normal
tax, surtax, declared value excess-profits tax, excess profits tax,
total tax, compiled net profit less total tax, and dividends paid by
type of dividend.
The industrial classification is based on the business activity
reported on the return.

When multiple businesses are reported on a

return, the classification is determined by the business activity
which accounts for the largest percentage of totai receipts.

There­

fore, the industrial groups do not reflect pure industry classifications

TREASURY DEPARTMENT
Washington

EOR RELEASE, MORNING NEWSPAPERS
Wednesday, March i, 19frU

PrGS<,
h 0 . hO-gh

Secretary of the Treasury Morgenthau today made public the third
in the series of tabulations which will appear in the report '*Statistics
of Income for 19^1* Part 2, w compiled from corporation income and ded a r e d value excess-profits tax returns, excess profits tax returns,
and personal holding company returns.

These data are prepared under

the direction of Acting Commissioner of Internal Revenue, Harold N. Graves.
The following table shows data from corporation income and de­
clared value excess-profits tax returns for 1 9 I+X, classified by major
industrial groups.

Items tabulated include number of returns, items

of compiled receipts and compiled deductions, compiled net profit or
net loss, net income or deficit, net operating loss deduction, normal
tax, surtax, declared value excess-profits tax, excess profits tax,
total tax, compiled net profit less total tax, and dividends paid by
type of dividend.
ihe industrial classification is based on the business activity
reported on the return.

When multiple businesses are reported on

a return, the classification is determined by the business activity
which accounts for the largest percentage of total receipts.

There­

fore, the industrial groups do not reflect pure industry classifications.

In analyzing the data compiled from returns classified under
the major group ’’Insurance carriers, agents, etc.,” it should he
noted that life insurance companies are required to include only
interest, dividends* and rents in gross income*

3Tor 1941, as in

prior tax years, such companies are allowed to report as deductions
the earnings needed to maintain reserve funds required by law and
reserve for dividends*

The deductions for these reserves, amounting

to $1,013,203,667 in aggregate, are included in ’’Other deductions”
shown in the accompanying table*

Corporation rotuno, 1941, by."*^or
.^oupoi Nfaher of returns, ooaplled raealpto, compiled doduetlono, oompiled not profit or not loto, not lnoooe or doflolt.
not operating loot éeduotlon, normal tax, surtax, declarad Taino oxeooo-proflti tax, axoooo proflto tax, total tax,
oompiled not profit Into to tal tax, and dlTldanla paid by typo o f dlrldond
__;__________________(Money figures In thousands of dollars)________
All
industrial
groups
/

t

Nvsnber of returns 4/

p s

10
u

ggg

12
13
14

g

15

gg ggsg gB g gsgss

16
17
IS
19
20
21
22
23
24
25
26
27
28
29

Total oomplled reoslpts 16/
Daduetlons:
Cost of goods sold 17/
' Cost of operations 17/
Compensation of offleers
Rent paid on business property
Repairs 18/
Bad debts
Interest paid
Taxes paid 19/
Contributions or g ifts 20/
Depredation
Deplet Ion
Amortization 21/
Net long-1am capital loss 12/
Nat loss, salsa other than oapltal
assets 13/
Other daduetlons

31

Total, compiled deductions

32
33
34
35
36
37
38

Compiled net profit or net loss (15 less 31)
Nat Income or deficit 22/ /5a less (6 •/ 7j/
Net operating loss deduction 23/
Normal tax 24/
Surtax 25/
Declared value excess-profite tax
Excess profits tax 26/

gagas

g

g

30

Receipta:
Cbroas salsa 5/
Cross receipts from operations 6/
Interest on Government obligations;
Wholly taxable 7/
Subject to deolarod talus axoeesprofits tax and surtax 8/
Subject to surtax only 9/
Wholly tax-exempt 10/
Other Interest
Renta and royalties 11/
Net capital gain Vt/
Ret gain, aalas other than capital
assets 13/
Dividends, domestic corporations 14/
Dividends, foreign corporations 15/
Other receipts

39

Total tax

40 Ccaplled net profit less to ta l tax (32 lass
39),
Dividends paid:
41
Cash and assets other than own stock
42
Corporation’ s own stock
For footnotes, see p. 9 .

468,906

Total
mining
■ Metal
and
mining
quarrying
9,667

1,290

151,325,357 3,414,770 1,072,513
29,379,468 307,747
20,093
38,340
467,221

149
1,338

104
497

63,110
279,069
2,564,861
2,158,507
162,684
184,380

51
1,416
8,343
52,035
9,474
10,792

24
420
2,210
6,434
1.063
903

2,237,368
180,428
1,391,224

55,413
2,633
35,341

39,762
661
4,034

190,432,017 3,899,506 1,148,719
113,317,092 2,167,191
15,140,749 195,400
21/3,471,811
54,585
2,081,953
17,680
1,597,898
70.841
735,583
9,008
2,624,315
48,265
5.024.667 164,299
58,498
880
3,765,339
179,906
543,748 271,207
113,810
1,292
1,005,889
19,275
296,710
5,843
28/23,979,845

664,697
12,782
6,185
1.064
17,417
781
5,585
56,454
355
41,558
96,340
981
4,551
788

313,518

46,740

29/173,757,295 3,519,187

946,277

16,674,722
16,332,542
330,030
2.947.668
797,000
64,149
3,359,186

380,318
378,851
19,255
81.842
23,173
368
38,849

Ozude
Bituminosa potrolo­
Anthra- ooal,
os and
olta
lignito, natural
mining peat, ote, geo produetion
145

Monaacta ille
mining
aud
quarry-

Mining
and
quarry­
ing not
ellooa.223

1,722

4,682

1,605

240,975 1,078,551
84,771
13,655.

685,667
163,097

327,958
24,580

10
199

22
222

8
337

5
82

(i&f

218
4,721
2
238

16
600
2,267
25,774
447
990

6
335
3,260
12,435
7,691
8,023

4
54
385
2,628
261
595

198
(28)
3,890

4,242
170
9,664

9,684
1,799
14,882

1,512
3
2,753

264,114 1,207,747

907,223

360,820

191,555
10,436
2,079
607
5,712
822
6,801
11,540
29
6,260
7,050

285,266
95,410
21,065
8,478
8,263
3,091
21,445
40,416
222
75,190
129,871
12
5,996
2,759

190,890
13,571
12,569
2,749
12,635
1,684
3,183
10,519
165
15.872
10,182
114
1,344
512

7

2,307
17
13,015

837,778
62,155
12,463
4,741
26,553
2,599
11,160
44,882
109
40,395
27,321
185
4,948 *
1,739
87,462

128,383

36,826

258,232 1,164,480

825,868

312,816

43,267
42,651
4,562
10,199
2,804
103
5,959

81,365
81,024
7,359
23,500
6,509
36
2,825

48,003
47,945
1,428
9,511
2,656
179
7,784

202,442
201,998
2,690
37,234
10,791
45
21,873

5,882
5,875
3,195
1.333
393
5
402

_______ Mlmafacturln 1
Total
aumufaeturlng
84,431

flood and
kindred
products

Beverages

Tobaeeo
manufac­
tures

Cotton
manufac­
tures

9,766

2,892

254

786

Textile- Apparel
mill
and
produeto, products
axeept
amde from
3,964

8,771

1

9,096 89,900,981 13,295,917 2,833,759 1,564,366 1,935,284 4,008,016 3,286,370
1,560 2,122,377
81.749
8,580
1,630
8,188
59,901
60,731
1,377
44
is
20
10
22
6
1
11,031
745
210
325
170
251
125
1,207
75
46
8
14
3
4
8,650
796
197
112
£13
£29
84
"3
106,110
10.750
2,388
2,602
1,586
' 2,964
1,150
43
243,887
19,471
3,952
2,610
7,062
5,976
5,628
10
17,071
1,674
£90
221
253
928
132
43
29,768
2,339
912
67
353
1,357
368
17
502,094
36,758
2,889
4,520
2,378
4,038
1,869
81,373
13,112
141
753
41
1,452
160
119
416,145
53,492
12,864
6,697
10,618
21,801
12,571
10,883 93,442,070 13,516,921 2,266,210 1,583,959 1,966,361 4,106,959 3,569,199

2
3
4
3
6
7
8
9
10
11
12
13
14
15

7,003 64,904,461 10,887,768 1,252,874 1,159,464 1,519,135 3,137,560 2,651,982 16
1,046 1,339,892
26,248
2,613
135
3,192
56,971
44,421 17
233 1,341,888
110,525
34,389
5,982
18,026
75,420
109,646 18
40
343,327
35,574
6,457
1,454
1,579
12,044
27,472 19
261 1,172,608
100,425
15,128
2,169
22,673
41,137
5,997 20
30
190,846
25,468
•5,442
652
1,329
4,458
5.835 21
91
354,541
37,935
12.617
6,141
7,194
17,457
9,363 22
487 2,334,660
191,034
353,957
108,299
40,579
67,170
38,976 23
1
28,919
2,554
1,074
265
272
1,472
1,087 24
630 1,632,304
147,210
41,023
7,705
34,254
59,015
12,934 23
442
221,415
355
4
11
49
34 26
(3§i
88,599
537
83
216
237
100 27
129
233,752
33,860
1,950
1,171
2,780
6,988
1.835 28
27
75,644
11,093
3,013
409
4,449
9,145
509 29
1,101 8,739,941 1,266,552
342,174
124,502
97,904
290,495
333,044 30
11,524 83,002,798 12,877,139 2,072,798 1,418,348 1,753,592 3,759,620 3,243,234 31
30/641 10,439,272
30/641 10,429,414
20
140,712
66 1,755,334
19
444,862
42,695
(IS1)
7 2,702,957

639,782
638,912
11,432
129,288
31,281
2,046
69,932

193,413
193,207
3,473
42*397
9,332
313
19,577

165,611
165,453
108
34,606
10,105
8
18,003

212,769
212,553
9,349
40,760
6,323
673
44,157

347,339
347,096
13,524
63,556
14,993
2,742
72,153

125,965
125,878
5,525
24,210
5,148
1,090
18,862

32
33
34
35
36
37
38

7,167,902

144,232

69,942

2.333

19,066

32,870

20,130

91

4,945,848

232,546

71.618

62,722

91,913

153,444

49,311 39

9,506,819

236,086

132,500

3,749

24,201

48,495

27.873

31/732

5,493,424

407,236

121,794

102,889

120,856

193,895

76,654 40

6,700,787
178,940

321,820
1,767

147,618
40

4,186

, 20,672
273

125,866
1,114

23,427
341

31

2,835,506
76,088

273,500
2,636

69,600
663

94,797

41,597
847

69,831
4,151

24,367 41
3,164 42,

Corporation «turns, 1941, by major industrial group«! Huber of returns, compiled receipts, compiled deduction«, compiled net profit or net lose net income or d eficit
net operating loss deduction,. normal tax, surtax, deelared value excess-profits tax, excess profits tax, total tax,
'
compiled net profit less total tax, and dividends paid by type of dividend - Continued
(Money figures in thousands

Leather
and
produets
Number of returns 4/
Receipts:
Cross sales 5/
Cross receipts from operations 6/
Interest on Government obligations:
Wholly taxable 2J
Subjeot to deelared value excessprofits tax and surtax &/
Subject to surtax only 9/
Wholly tax-exempt 10/
Other interest
Rants and royalties 11/
Net oapltal gain 12/
Nat gain, sales other than capital
assets i;/
Dividends, domestic corporations 14/
Dividends, foreign corporations 15/
Other receipts

Sì g S iS

Total compiled receipts 16/
Deductions:
Cost of goods sold 17/
Cost of operations 17/
Compensation of officers
Rent paid on business property
Repairs 18/
Bad debts
Interest paid
, Taxes paid 19/
Contributions or gifts 20/
Depredation
Depletion
Amortization 21/
Net long-term oapltal loss 12/
Net loss, sales other than capital
assets 13/
Other deductions
31

Total compiled deductions
Compiled net profit or net loss (15
less 31)
Net income or deficit 22/ ¿22 less (6 4
Net operating loss deduction 23/
Normal tax 24/
Surtax 25/
Declared velue excess-profits tax
Sxoesa profits tax 86/
Total tax
Compiled net p r o fit le s s t o t a l ta x (32 le s s

39)
Dividends paid:
Cash and assets other than omn stock
Corporation's own stock
For footnotes, see p. 9 .

Rubber
products

and
timber
b u ie
products

and
finiahad
lumbar
DIOdUOtB

2,641

4,240

Paper and Printing
allied
and pub­
producta lishing

Chemicals Petróleos Stone,
and
and coal clay, and
allied
products glass

2,085

538

1,757,140
5,840

1,670,548
2,759

3
90

8
63

11
170

41
197

42
579

117
1,037

104
1,301

51
757

82
529

2
90
1,824
1,347
104
140

3
30
1,411
3,008
70
30

6
137
2,020
7,740
2,854
5,413

18
259
1,458
2,493
523
813

34
188
3,739
6,823
973
1,266

32
838
4,295
12,251
1,205
1,151

243
1,430
8,878
17,236
1,564
848

140
386
14,901
33,281
1,238
3,492

1,992
7
9,131

6,246
5,921
5,425

4,079
173
12,904

2,491
310
11,054

7,611
1,899
15,476

18,568
1,268
25,401

73,570
7,901
23,694

189 ,369
2,795
29,967

1,326,494 1,799,799 2,805,663

2,618,946

1,777*709 1,695,542

2,203

1,461,555 1,770,876 2,759,732
29,428
9,264
5,300

1,452,850 1,165,573 1,034,481 1,299,334 1,905,308
3,582
454
15,644
5,034
1,754
34,332
12,381
30,770
52,401
52,472
7,377
5,582
3,793
9,909
10,484
11,820
23,093
12,484
15,624
56,574
2,352
5,299
5,439
5,335
5,969
5,577
7,999
8,247
6,759
18,053
24,696
75,690
31,262
32,096
35,847
474
352
446
636
1,358
12,048
29,143
31,973
22,344
70,858
8
539
31,151
987
3,519
36
373
196
150
799
4,646
4,126
6,915
2,157
19,965
1,010
913
3,515
2,352
2,793
127,023

213,666

150,193

1,688,029 1,545,186

1,366,511

207,167

247,766

1,662,305 2,453,519

11,131

6,588

5,278

Machinery,
Nonferrous.
Automobiles
metals and Electrical except, trans and equip­
machinery portât ion
their
ment, except
and
equipequipment
an*
products
electrical

Iron,
steel,
and
6,320

2,605

1,694

5,799

2,366,535 6,331,900 6,270,028 2,250,266 11,591,871
186,235
44,734
327,235
10,671
54,042

2,780,286
74,727

3,703,961
8,041

7,063,355
91,532

6,491,964
1,957

1,064

45
280

398

117
1,806

417
517

65
289
2,137
6,180
955
1,482

69
607
9,641
20,253
726
2,638

26
174
2,406
2,721
465
299

206
469
3,368
6,975
302
983

130
1,462
14,678
N 36,343
1,432
3,704

21
331
5,606
8,870
287
642

10,067
5,416
13,125

28,925
4,068
38,532

17,405
6,502
8,156

13,402
3,265
12,085

12,658
8,574
37,480

43,401
14,774
19,041

6,513,404 6,895,641 2,301,262

11,752,569

2,893,492

3,753,700

7,273,271

6,587,829

1,559,246 4,047,946 4,411,334 1,468,608
92,990
7,222
175,178
5,699
111,693
93,967
16,311
43,582
31.181
18,152
63,838
9*884
10,861
76,661
89,301
47,276
12,828
17,154
18,077
5,418
15,615
19,012
39,426
9,169
52,849
119,917
235,636
49,279
1,784
2,249
918
995
45,699
142,900
279,657
62,812
43
5,787
168,496
2,289
43
11,148
899
699
5,896
13,782
36,391
5,332
1,621
4,123
3,495
2,734

8,368,615
31,120
163,488
36.969
289,618
13,714
80,961
226,800
3,452
254,408
3,675
16,910
19,165
8,719

2,088,959
39,298
47,487
7,740
35,231
3,514
7,489
50,158
1,078
39,451
3,214
10,186
4,841
1,151

2,431,457
3,317
43,116
10,128
42,750
3,319
5,030
97,978
1,402
58,290
14
5,185
7,554
2,266

4,436,308
8,904
148,581
16,687
110,828
27,122
17,249"
155,836
3,681
113,147
414
15,006
20,613
5,272

5,028,288

484,869

915,420

806,029

2,427,159 5,495,441 6,344,987

250,639

112

701,838

176,475

378,388

875,686

1,963,416 10,219,451

2,516,270

3,090,194

5,955,333

110

26,313
4,857
84,607
2,356
7,336
199,198
1,710
94,077
642
8,308
11,884
701
256,037
5,726,424 .

89,680

150,357

159,983

137,494

352,144

191,787 1,017,963

550,654

337,845

1,533,118

. 377,221

663,506

1,317,937

861,405

89,588
4,000
18,720
2,818
799
9,857

150,323
1,362
28,397
5,560
397
30,287

159,839
5,990
29,157
7,732
815
33,462

137,216
5,249
25,427
6,994
1,243
26,679

351,922
5,383
69,933
15,519
1,490
92,866

190,896 1,016,290
3,564
4,477
40,818
170,665
11,476
45,548
376
1,986
16,929
247,011

550,128
4,244
88,387
26,440
288
22,976

337,491
2,954
59,948
16,349
664
82,429

1,532,442
25,898
240,328
65,400
9,626
479,903

377,021
2,085
69,997
16,682
1,076
112 , œ i

662,831
5,000
98.356
27,591
1,756
239,818

1,316,343
8,941
210,819
47,748
6,865
453,606

861,053
5,801
133,366
36,502
3,195
266,717

32,195

64,640

71,166

58,244

169,809

69,697

465,109

137,092

169,360

795,457

189,775

367,621

699,038

459,780

57,485

85,716

88,816

79,260

182,336

122,190

552,855

413,562

178,465

737,661

187,446

295,885

618,900

421,625

28,582
1,064

36,256
174

55,112
1,489

30,551
1,418

91,418
1,978

89,704
4,224

337,824
14,220

293,464
15,791

108,429
1,824

276,490
5,564

83,761
1.276

146,011
678

255,925
6,653

257,083
542

Corporation returns, 1941, faymajor industrial groups» Number of returns, compiled receipts, compiled deductions, compiled net profit or net loss, net income or d eficit,
net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total tax,
compiled net profit less total tax, and dividends paid by type of dividend - Continued
(Money figures in thousands of dollars)
Transpor­
Manu­
tation
Other
fac­
equipment, manufac­ turing
turing
except
not
• allo­
automo­
biles
cable
Number of returns

4/

Receipts:
Gross sales 5/
Gross receipts f r a operations 6/
Interest on Government obligations t
Wholly taxable 7/
Subject to declared value excessprofits tax and surtax 8/
Subject to surtax only 9/
Wholly tax-exempt 10/
Other interest
Rents and royalties 11/
Net capital gain 12!
Net gain, sales other than capital
assets 15/
Dividends, domestic corporations 14/
Dividends, foreign corporations 15/
Other receipts
Total compiled receipts 16/

850

4,178

2,858,988 1,591,702
1,028,260
17,113

2,492

Total
public
u tilitie s

Trans­
portation

Communi­
cation

Other
public
u tilitie s

21,921

14,521

3,718

3,682

Total
trade

138,703

Total
Commis­
wholesale sion
merchants

37,632

856,566
186,758
121,471
8,596
56,690 55,785,709 26,704,699
4,459 15,144,565 9,404,581 1,664,392 4,075,843 1,134,521
673,419

5,486

Other
whole­
salers

32,146

Total
re tail

84,545

Food
General stores
merchan­ including
dise
market
milk
dealers
6,440

Package
liquor
stores

6,910

1,782

984,785 25,719,915 24,720,654 6,823,670 4,828,852
336,656
556,763
356,695
27,347
38,100

110,229
2,755

22
154

37
105

8
129

315
5,439

176
2,523

18
45

125
871

538
1,788

199
679

10

37

189
642

118
947

34
375

108

25
159
3,128
5,414
414
531

17
98
2,242
4,154
185
345

2
75
946
2,101
74
372

367
1,339
85,643
278,882
10,930
30,067

105
856
54,084
227,Ì96
8,226
22,826

5
75
2,885
25,048
585
57

257
410
26,674
26,638
2,518
7,184

195
1,775
81,154
114,358
6,629
9,827

76
812
28,818
25,582
2,737
4,040

4
128
6,257
2,484
516
328

72
684
22,582
23,098
2,421
3,713

98
697
46,098
77,586
3,216
4,316

19
244
24,182
36,471
706
834

1,751
4,587
710
951

1
115
39
43

10,709
412
22,085

6,592
2,017
9,306

2,562
412
5,242

138,877
1,836
67,561

77,222
763
46,719

13,773
29
5,646

47,882
1,044
17,196

60,657
33,503
547,961

34,148
8,989
159,649

7,306
141
18,995

26,841
8,848
140,656

23,958
6,126
351,010

10,747
6,097
87,723

5,803
7
16,042

191

26,286,423 25,591,520 7,018,448 4,895,032

115,574
87,900
2,257
5,748
2,955
150
62
268
2,199

12

102

8,930,289 1,688,906

872,948 15,948,578 9,966,498 1,718,946 4,263,154 57,776,415 27,643,847 1,357,424

Deductions >
Cost of goods sold 17/
Cost of operations 17/
Compensation of officers
Rent paid on business property
Repairs 18/
Bad debts
Interest paid
Taxes paid 19/
Contributions'or g ifts 20/
Depreciation
Depletion
Amortisation 21/
Net long-term capital loss 12/
Net loss, sales other than eap4+ryi
assets 18/
Other deductions

1,995,711 1,008,248
824,478
9,184
24,708
54,341
9,115
11,838
59,556
11,647
6,612
10,457
7,269
4,825
77,604
55,223
524
940
89,048
22,688
31
12
15,174
1,526
5,206
15,225
2,890
2,057

598,417
2,574
29,955
4,215
7,347
2,499
3,817
14,575
258
11,619
139
790
1,471
1,484

132,517
82,705
8,448,545 5,992,650
157,530
103,109
550,127
475,565
33,790
27,803
26,757
11,487
1,032,725
635,752
1,148,506
584,751
4,988
1,2871,006,214
562,876
15,015
3,570
20,698
18,829
175,829
158,741
29,030
16,971

4,240
45,571 44,726,939 23,172,491
781,076 1,674,620
533,636
275,881
10,392
. 24,030 1,083,428
461,503
52,967
41,594
101,469
736,020
2,555
3,432
26,1861
123,584
5,407
9,863
189,574
72,505
49,830
349,144
149,515
58,309
147,984
415,570
530,748
157,827
1,065
2,638
13,964
4,973
195,826
447,513
311,045
75,608
6
11,459
1,346
676
9
1,860
1,587
419
1,859
15,229
48,508
21,882
1,128
10,930
15,078
4,979

910,733 22,261,758 18,110,103 4,489,118 3,894,507
73.807
202,075
211,867
9,196
26,532
56,393
405,110
506,624
64,079 * 37,342
11,387
90,082
590,791
176,022
63,240
1,359
25,522
85,747
30,638
15,750
6,225
92,661
66,080
24,490
4,120
4,663
55,646
77,095
25,021
7,933
9,704
148,123
522,403
118,111
44,275
532
4,441
7,943
3,490
924
4,368
71,241
203,024
65,557
42,625
47
628
444
117
12
51
388
875
644
15
4,140
17,742
21,080
6,784
7,261
755
4,244
8,897
1,604
2,599

109,725

1,257,996

175,210

198,018

Total compiled deductions

8,209,437 1,425,774

141,712

242,640

700,997

583,789

788,652 14,019,667 9,175,095 1,407,551 5,437,023

7,229,465

2,304,255

2,106,242

4,554^977 1,501,106

1

11

602
1
4
20

671,805

10,573

55,694,225 26,739,487 1,282,117 25,457,320 24,594,533 6,518,952 4,818,717

112,750

Compiled net profit or net loss (15
less 81)
Net income or d eficit 22//S2 less (6+7
Net operating loss deduction 25/

720,852

208,182

64,516

1,928,911

791,405

811,595

826,111

2,082,190

904,411

75.807

829,105

996,987

504,496

76,516

628

720,668
6,210

208,028
8,696

84,289
2,446

1,927,205
64,795

790,444
55,268

811,518
1,247

825,443
8,279

2,080,220
53,406

908,522
21,928

75,176
1,958

828,346
19,975

Normal tax 24/
Surtax 25/
Declared value excess-profits
Excess profits tax 26/

996,192
26,305

504,254
5,830

76,201
1,984

628
186

106,496
28,752
2,521
291,778

85,265
9,685
1,205
54,587

14,589
8,940
1,852
20,545

416,504
120,172
1,078
167,484

171,259
48,880
960
87,462

65,445
19,000
34
50,770

179,800
52,292
79
49,202

394,115
106,122
15,058
547,948

167,518
42,120
9,500
169,811

12,100

155,418
38,959
9,120
153,740

189,905
55,652
4,147
158,178

95,042
26,597
1,187
100,427

17,245
4,941
114
7,480

211

424,548

100,688

40,156

705,188

808,561

115,249

281,375

888,288

888,950

81,713

357,287

405,876

221,258

29,779

296,804

107,444

44,160

1,228,728

482,844

196,146

544,758

1,218,952

515,461

48,594

471,866

591,111

285,248

46,536

94,225
8,011

59,598
8,622

17,885
1,108

1,086,682
4,764

549,589
2,675

201,851
569

585,392
1,619

587,105
24,515

228,685
14,764

22,054
278

201,651
14,486

298,208
7,170

158,451
1,326

38,357
556

Total tax
Compiled net profit less to tal tax (82 less
89)
Dividends paid:
Cash and assets other than omn stock
Corporation's omn stock
For footnotes, see p. g.

3,161
580
16,072

68

18
25

Corporation returns, 1941, by major industrial groups: Number of returns, eompiled receipts, eompiled deductions, compiled net profit or net loss,
net Income or d eficit, net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total tax, com- *
Pjled net profit less total tax, and dividends paid by type of dividend - Continued
(Money figures in thousands of dollars)
Trade
Apparel and furniture Sating and Automotive Filling Hardware Building
Other re­ Retail not
accessories and house drinking dealers
stations
materials, ta il trade trade not allocable
furnishings places
fuel,and ice
allocable
5,257
11,244
5,480
10,154
10,586
2,620
2,671
8,384
5,052
8,165
16,526

Drug
stores
1
2
3
4
S
6
7
8
9
10
U
12

13
14

Nunber of returns 4/
Receipts:
Gross sales 5/
Gross receipts from operations 6j
Interest on Government obligations:
Rtolly taxable 7/
Subject to declared value excessprofits tax and surtax 8/
Subject to surtax only 9/
Wholly tax-exempt 10/
Other Interest
Rants and royalties 11/
Net capital ¡^in 12/
Net gain, sales other than capital
assets 13/
Dividends, domestic'corporations 14/
Dividends, foreign corporations 15/
Other receipts
Total compiled receipts 16/

15
16
17
18
19
20
21
22

23
24
25
26
27
28
29
30

Deductions:
Cost of goods sold 17/
Cost of operations 17/
Compensation of officers
Rent paid on business property
Repairs 18/
Bad debts
Interest paid
Taxes paid 19/
Contributions or gifts 20/
Depreciation
Depletion
Amortization 21/
Net long-term capital loss 12/
Net loss, selss other than capital
assets 13/
Other deductions

682,686
5,827

2,230,749
23,591

940,224
14,585

822,155
73,515

4,440,169
104,125

2
9

12
M)5

3
34

22
34

6
50

< s)
8
447
1,699
31
91

6
62
1,412
11,513
429
89

6
41
3,033
2,412
160
205

3
9
393
4,645
141
248

1
12
6,421
2,288
137
407

1,885
(3§)
6,502

2,387
(3§4
44,617

525
92,348

1,110
(23')
5,370

656

699,188

2,314,973

1,053,576

476,586
3,447
18,065
32,141
2,302
587
1,141
9,696
140
6,974
12

1,461,680
11,543
74,706
133,206
6,198
10,319
5,012
27,640
1,009
16,879
25
88
1,116
688

541,226
5,642
43,413
30,317
2,423
10,641
5,576
17,262
666
5,958
16
5
780
393

(33¡í

338
181

365,243
7,736

Total
service

Hotels
Personal
and othe ' servios
lodging

40,494

5,041

9,015

1
e

225,269
1,749

1,395,221
23,037

1,096,830
27,079

759,359
7,248

4,358,356
104,407

735,817
3,258,933

221,099
441,468

178,460
544^140

86

1
2

16
57

6
66

8
19

21
161

65
596

9
36

11
39

36
48
152
3,155
47
149

(32)
53
809
436
14
61

58
2,825
5,348
529
722

2
59
3,369
3,286
139
303

21
1,303
1,630
135
213

20
26t
6,237
11,189
676
1,471

28
599
7,869
88,898
2,201
3,045

2
59
876
43,305
'666
797

4
51
327
1,706
185
366

99
•
2,926

1,263
3
15,587

748
10
24,707

56,946

s jl 6 6

1,407
13
9,554

590
3
5,202

12

16,098

2,551
18,388
37,303

25,411

36,595

240
3
2,304

907,647

4,590,872

379,199

231,401

1,444,677

1,156,603

786,530

4,541,048

4,183,574

719,290

731,084

15

484,164
47,434
33,993
' 52,661
8,297
782
2,881
22,101
181
19,488
30
6
395
581

3,778,885
68,511
95,712
38,312
6,607
13,162
13,357
28,386
571
11,280
17
10
1,671
1,240

278,741
4,932
7,605
6,911
2,121
1,109
868
7,315
52
5,511
16
257
168

172,085
1,015
10,775
3,941
288
1,598
1,056
2,817
60
1,276
1
65
38

1,068,990
16,477
49,160
8,203
6,668
11,632
7,167
19,730
365
15,342
56
40
1,847
1,021

763,292
11,267
47,347
33,259
2,534
9,188
3,967
15,184
299
7,829
28
67
511
260

612,928
3,814
18,681
9,622
1,791
4,971
2,846
7,69C
175
5,724
112
(3§)
151
103

3,444,346
45,887
115,295
43,760
10,976
24,608
14,111
50,518
1,048
32,413
227
92
5,546
1,196

409,908
1,721,267
212,642
202,526
52,543
17,887
58,720
130,564
1,707
145,987
340
427
20,270
4,590

124,970
182,876
16^156
42,005
24,712
2^492
30,387
43^919
201
48,673
66
178
2,440
1,770

92,455
304^150
50¡764
21¡226
9,426
3¡G83
4¡664
19|692
329
25,713
14 ‘
4
2, 563
477

16
17
18
19

6

(3

U

496
m )

3
5
6

7
8
9
10
11

13
14

20

21
22

23
24
25
26
27
28
29

126,594

467,066

335,060

223,106

437,894

49,914

27,689

191,792

213,315

99,064

570,233

1,020,440

199,383

175,628

30

31

Total compiled deductions

678,203

2,217,175

999,380

896,100

4,495,516

365,522

222,704

1,398,490

1,108,347

767,678

4,360,256

3,999,817

720,228

710,989

31

32
33
34

Compiled net profit or net loss (15 less 31)
Net Income or deficit 22/ [j& less (6 ^-7)_/
Ret operating loss deduction 23/

20,985
20,977
825

97,797
97,730
4,433

54,196
54,149
2,555

11,546
11,534
1,345

95,357
95,344
3,379

13,677
13,593
302

8,697
8,664
428

46,188
46,119
1,994

48,256
48,194
2,621

18,851
18,830
973

180,792
180,506
5,173

183,757
183,130
9,443

30/938
30/999
2,265

20,094
20¡039
1j 619

32
33
34

35
36
37
38

Normal tax 24/
Surtax 25/
Declared value excess-profits tax
Excess profits tax 26/

4,402
808
91
1,519

18,369
5,009
443
12,976

10,378
2,951
389
5,301

4,027
1,033
91
966

16,119
4,713
514
15,728

2,814
824
36
1,522

1,504
462
129
869

9,160
2,615
420
3,037

9,156
2,568
512
7,263

36,692
10,350
1,410
19,959

46,883
11,161
763
16,788

4,662
1,221
64
1,425

4,946
1^391
127
1,362

35
36
37
38

75,595

7,371

7,825

39

108,162 31/8,309

12,269

40

7,842
137

41
42

39

Total tax

40

Compiled net profit less total tax (32 less 39)

41
42

Dividends paid:
Cash and assets other than own stock
Corporation’ s own stock
Tar

footnotes, see p. 2,

3,479
1,062
205 ■
1,060

6,819

36,797

19,019

6,117

37,074

5,196

2,964

15,232

19,499

5,806

68,411

14,166

61,001

35,178

5,429

58,283

8,481

5,733

30,956

28,757

13,045

112,381

8,048
72

21,842
1,535

9,032
1,188

7,291
36

19,092
691

4,981
31

2,554
84

15,288
914

8,956
462

4,214
278

65,217
2,381

98,594
4,673

7,788
520

o>

C orp oration,returns, 1941, by major in d u stria l groups: Number of re tu rn s, compiled r e c e ip ts , compiled deductions, compiled net p r o fit or net lo s s ,
net income or d e f i c i t , net operating lo s s deduction, normal ta x , su rta x ,a ecla red 'v a lu e e x c e s s-p ro fits ta x , excess p r o fits ta x , t o t a l tax com­
p iled net p r o fit le s s t o t a l ta x , and dividends paid by*type o f dividend - Continued
__________ li

Business
Service

1 Number of returns 4/
■s

3
4
5

6
7
8

9
10

11
12
13
14
15
16
17
18
19
20
21
22

23
24
25
26
27
28
29
30
31

R e ce ip ts:
\
Gross s a le s 5/
Gross re c e ip ts from operations 6/
In te re s t on Government o b lig a tio n s :
Wholly tax ab le 7/
S u b ject to declared value excess*p r o fit s ta x and surtax 8 /
Su b ject to surtax only 9/
Wholly tax-oxempt 10/
Other in te re s t
Rents and r o y a ltie s 11/
Net c a p ita l gain 12/
Net gain, s a le s oth er than c a p ita l a s se ts 13/
Dividends, domestic corporations 14/
Dividends, foreign corporations 15/
Other re c e ip ts
T o ta l compiled re c e ip ts 16/
Deduct ion s:
Cost o f goods sold, 17/
Cost o f operations 17/
Compensation of o f fic e r s
Rent paid on business property
Repairs 18/
Bad debt8
In te re s t paid
Taxes paid 19/
Contributions or g i f t s 20/
Depreclation
Depletion
Amortization 21/
Net long-term c a p ita l lo s s 12/
Net lo s s , s a le s oth er than c a p ita l
a s s e ts 15/
Other deductions
T o ta l compiled deductions

Automo­
tiv e
re p a ir
serv ices
and
garages

M iscel­
laneous
rep air
s e r v ic e s ,
hand
trades

S r Y a i grai

Motion
p ictu res

Amuse­
ment,
except
motion
p ictu res

Other
s e r v ic e ,
including
schools

Service
not
a llo c a b le

T o ta l
fin a n ce,
insurance,
r e a l e s ta te ,
and le sso rs
of re al
property

T otal
finance

ice, r e a l e s t a t e , and le ss o rs of r e a l propertv
Finance
Long-term
S h o rtOther in ­
In vest­
cred i t
term
ment
vestment
Banks and agencies,
c re d it
companies,
tru sts
tru st
mortgage
a g en cies, antf in ­
including
companies companies, except
vestment
holding
except
banks
companies companies
banks.
2/
3/

7,212

3,553

1,622

4,350

4,943

4,565

193

143,494

36,983

15,637

; 3,232

5,105

3,890

2,351

1

80,511
740,214

87,171
75,826

41,456
56,293

56,601
945,973

36,861
228,543

30,568
219,784

3,090
6,692

125,109
4 ,2 6 0 ,7 0 2

30,877
954,864

308,605

14,915

7,614
269/362

6,664

16,613
179^556

3

35,896
447,915

30,929
279,609

30,216
275,856

24
118

42
45

175
1,119

"330
1.735

4
5

10
107
160,904
1,387
446
601
9,353
56
14,126

139
1,614
30/559
3 ,502
8,549
311
215,841
6/337
.3,720

858
1,288
181/352
20 \774
11¿358
667
1,036,319
46/183
12,254

13
14

464,054

278,529

1,509,287

15

4,887
2,747
26,235
9,697
730
30,996
53,901
12,900
484
3 ,628
2

254
7,977
788
128
14,408
30,088
6,151
528
847
450

16
17
18
19

1,981
506

94,667
3,979

11,265
71/155
16/877
15,598
l/282
77,455
199,155
27,930
*908
23,403
1,095
r 37
142,907
5,093

23
24
25
26
27
28
29

20
136

6
3

(3£l
2

8
41

4
15

9
322

m
1

7
74
1,803
10,844
335
538
3 ,0 9 1
304
8 ,7 3 8

(3 Sl
3
91
4,909
114
296
40
2 ,938

(3§4
1
48
106
53
65
11
5
467

3
237
3,022
20,392
360
489
18,722
2,762
17,204

(3§1
12
666
4 ,667
364
360
*430
2
5,858

10
162
1,024
2 ,876
122
128
1/120
77
6 ,931

iss i
11
94
2
7
(32)
(M )
54

^ 1 ,2 2 1
264,236
2,2 6 9 ,1 1 9
1 ,3 4 8 ,7 0 6
109;393
89,081
1,4 3 6 ,9 7 5
57,143
200,419

59,210
157,848
1,388,705
180,027
89,126
49,527
1 ,308,024
53,284
93,289

57,995
150,318
975,539
91,458
63,113
3,833
24,964
472
48,095

846,616

171,397

98,507

1 ,065,815

277,782

263,133

9,951

10,705,913

4 ,675,322

2 ,030,457

—52,773

55,105
402,699
64,732
18,606
3 ,440
2 ,8 7 3
2 ,424
14,094
356
15,115
152
12
2,051
974

58,024
34,472
10,933
19,623
1,623
757
2,020
4 ,8 7 7
43
6,323
4

27,737
35,533
8 ,391
1 ,6 1 4 .
• 394
421
378
1,931
25
1,868
1
16
37
32

11,227
554,796
21,675
76,748
6,628
4,364
13,899
25,808
324
28,082
20
214
11,139
373

19,866
109,103
15,136
13,753
4,2 4 7
739
3 ,110
13,987
319
12,713
49
(3§4
469
643

18,410
95,609
23,436
8 ,5 9 1
2 ,031
2,309
1,813
6,067
105
7,315
31
3
1,436
169

2,116
2,0 2 8
1,420
359
t 42
50
24
190
4
180
1

94,040
363,165
27/463.659
199,245
113,804
286,769
950,696
650,626
6,904
415,622
29,645
775
484,391
148,090

20,899
180,920
291,649
80,677
17,424
259,796
525,214
175,203
5,264
89,877
1,966
134
363,493
55,781

500
200,054
45,063
13,514
113,115
215,891
115,031
3,158
52,096
166
25
103,999
27,242

1,329
5,508
1,128
969
3 ,461
12,528
4,054
25
2,254
6
4
2,046
6,273

-

134
149

.

2
2

10
1,142
18,479
11,703
1,017
860
249
( 3 § ii
4,255

2

6
7

8
9
10
11
12

20
21
22

217,825

29,524

13,850

225,392

67,442

88,177

3,219

28/ 5,060,340

1,095,111

655,011

27,823

177,508

34,149

100,024

30

800,457

168,505

92,229

980,688

261,583

255,502

9 ,634

29/ 9,267,772

3 ,163,410

1,544,865

67,406

326,203

194,415

693,584

31

32
33
34

Compiled net p r o fit or net lo s s (15 le s s 31)
Net income o r d e f i c i t 227/32 le s s ( 6 - ^ 7 ) /
Net operating lo s s deduction 23/

46,199
46,077
1,351

2,892
2,889
384

6,277
6,2 7 6
246

85,127
84,887
1 ,561

16,199
16,187
1 ,371

7,630
7,458
612

317
316
34

1,4 3 8 ,1 4 2
1 ,1 1 2 ,6 8 4
25,455

1,511,912
1,294,854
8,099

485,592
277,279
2,535

30/14,633
30/15,786
388

137,852
137,735
852

84,114
82,361
349

815,703
813,557
2,074

32
33
34

35
36
37
38

Normal ta x 24/
Surtax 25/
Declared value e x c e s s -p ro fits ta x
Excess p r o fit s tax 26/

10,446
2,860
93
3,7 8 8

749
237
26
607

1,074
319
120
1,049

17,678
3,112
146
3,609

4 ,510
1,128
78
3 ,181

2,737
869
103
1 ,7 5 1

82
26
5
16

203,601
77,928
1,274
40,850

126,846
53,978
658
28,938

24,639
25,232
293
1,430

988
304
12
35

27,963
7,573
67
11,653

5,687
1,662
12
42

58,399
16,709
179
14,108

35
36
37
38
39

•39
40
41
42

T o ta l tax
Compiled net p r o fit le s s t o t a l ta x (32 le s s 39)
Dividends paid:
Cash and a s s e ts oth er -than own stock
Corporation's own- stock

For footnotes, see p ,.9,

17,188

1,619

2 ,561

24,545

. 8 ,8 9 7

5,460

129

323,653

210,419

51,595

1,340

47,257

7,402

89,395

28,971

1,273

3/716

60,582

7 ,3 0 2

2 ,171

188

1 ,1 1 4 ,4 8 8

1 ,301,493

433,998

31/15,973

90,595

76,711

726,308

40

24,715
758

760
23

953
79

44,463
947

8 ,022
2

3,8 6 3
2 ,207

189
-

1 ,689,455
63,390

1,38 3 ,8 2 8
50,073

241,343
15,045

3,525
230

76,430
419

167,512
10,824

849,916
22,938

41
42

Corporation returns, 1941, by major Industrial groups: Number of returns, compiled receipts, complied deductions, compiled net profit or net loss,
net Income or deficit, net operating loss 4aduetlon, normal tax, surtax, declared value excess-profits tax, excess profits tax, total tax, com­
piled net profit less total tax, and dividends paid by type of dividend - Continued

X
2
3
4
5

6
7

8
9

10

P

12
13
14
15
16
17

ífl
19

20
21
22

23
24
25
26
27
28
29
30
31

(Money figures In thousands of dollars)
Major industrial groups
Finance . Insurance, real estate , and lessors of real propert - Continued
Finance - Continued
Insurance carriers, agents etc.
Real estate,
Finance
Seourlty Other
Total
Insurance including.
Insurance
and
not
finance
Insurance
carriers
agent8,
lessors of
comnodity- companies •allocabl
carriere
brokers, buildings
exehange
agente,
etc.
brokers
eto.
and
dealers
Receipts:
Cross sales 5/
Cross receipts from operations 6/
Interest on Government obligations:
Wholly taxable 7/
Subject to declared value excessprofits tax and surtax 6/
Subject to surtax only 9/
Wholly tax-exempt 10/
Other Interest
Rents and royalties 11/
Net capital gain 12/
Net gain, sales other than capital
assets 13/
Dividends, domestic corporations 14/
Dividends, foreign corporations 15/
Other receipts
Total oompiled receipts

16/

1/ - Continuad
Agriculture, forestry and fisher]
Lessors of
Total
Agricul­
real prop­ Construc­ agricul­ ture and Forestry Fishery
erty, except tion
ture,
servions
buildings
forestry,
and
fishery

1 , f DO

3 ,2 4 3

8 ,218

1,953

6,265

91,104

6 ,6 5 0
7,053

16,369

2 ,2 6 2 ,4 3 8

-

•

2 ,0 4 5 ,2 2 5

217,213

88,304
1,0 3 5 ,6 8 6

80
434

2
47

60
256

4 ,767
167,108

4 ,7 5 7
167,082

10
26

163
919

36
279

155
2 ,0 3 4
3 ,90 4
839

8
29
4 ,3 3 1
46,120
241
1,103

36
1,319
13,638
4 ,2 4 8
2,550
1,654

1,875
104,776
850,500
191,219
6,982
304

1,871
104,753
849,259
189,524
6,363
19Ì

4
22
1,242
1,694
619
113

127
1,427
2 7 ,722
780,376
11,364
3 7 ,6 6 1

13,622
156
1,9 9 3

2,3 7 2
14
2 ,9 3 7

108,245
3,662
28,851

104,707
3 ,4 4 4
20,392

3 ,538
217
8,459

17,792
162
42,570

81,352

45,454

3 ,7 3 0 ,7 2 7

3,4 9 7 ,5 6 9

233,158

1,760

-

If 832
40,497
5,3 0 5
66
5»910 .
213,416

Deductions:
Cost of goods sold 17/
Cost of operations 17/
Compensation of officers
Rent paid on business property
Repairs 18/
Rad debts
Interest paid
Taxes paid 19/
Contributions or gifts 20/
DepreciatIon
Depletion
Amortization 21/
Net long-term capital loss 12/
Net loss, sales other than capital assets 13/
Other deductions

102,672
26,780
6,459
133
2,292
3 ,0 1 4
4 ,4 2 8
115
778
8
(3§)
1,893
1,934
68,116

4,747
1 ,020
4 ,154
779
411
11,747
4 ,110
2 ,5 5 0
27
6,164
225
68
8 ,686
8 ,3 2 4
24,801

Total compiled deductions

‘

«V

7,189

14,996

7,901

7,098

496

307

7,299

1

5,928
499,311
7,713 3,952,761

575,478
136,425

537,562
125,111

11,140
4j568

26,777
6^745

103,423
61¡438

2

33
230

36
737

28
727

8
10

(324

130
148

4
5

9
- 185
2,191
197,084
1,921
1,589

15
455
2,469
12,243
1,117
7,516

7
198
2,345
11,159
3,619
2,016

6
182
1,996
10,456
1,523
1,007

1
11
307
341
2,069
919

2 ,914
35
35,709

5,768
198
4 7 ,e i7

9,453
526
10,617

9,298
516
9,518

126

2 ,0 4 4 ,2 7 2

255,593 3,529,934

752,617

' 2
31,159
.§7/60,138
23,263
2,864
4,172
57,155
113,802
670
42,180
9
(33)
55,783
6 ,581
8§& ,397,U 4

1,308
27/12,236
15,611
2,406
2,599
55,819
108,805
466
40,369
5
54,772
6,397
28/ 3 ,2 9 5 ,7 5 0

29,851
47,901
7,653
458
1,573
1,336
4 ,997
214
1,811
4
(3
1,011
184
101,364

6e,982
150,320
106,742
91,881
91,890
21,099
317,184
339,010
897
273,475
596
617
56,658
80,965
538,501

4,160
391,325
765 2,467,668
5,130
137,112
3,425
12,314
1,625
17,023
1,703
7,905
51,143
10,520
22,611
40,603
73
899
10,090
42,215
27,074
392
23
581
8,457
7,817
4,763
2,186
29,613
213,023

50,504 29/3,794,891

170,654 3,351,582

1,243
4 ,664
1,166
258
6,322
6,528
2,160
19
708
13
7,314
2,431
17,680

Nature of
business
not
alloeable,
except
trade

1

3

6

6
42
362
27
89

400
3,80ft
8,339
2 ’p.Rl
2,267

11

713

29
(32)
387

2,71ft
52
8 ,417

12
13
14

697,931

20,221

34,465

193,410

15

411,565
50,195
23,144
17,48ìr
12,053
3,348
12,978
18,377
153
26,613
3,601
2
5,292
2,973
101,506

380,974
45,263
21,294
' 17,219
11,212
3^013
11,273
16,526
139
25,270
684
2
3,989
2,293
95,307

8,022
1^570
79
60
234
1,478
11.394
11
499
2,916

22,569
3^362
1,089
190
781
101
227
457
4
844
1

16
17
18
19
20
21

1,278
664
2,911

24
16
3 ,288

79,346
P .l'lftl
17^828
3^226
1,65?.
3*489
6^354
6^474
84
5,434
787
49
10,755
13^282
43Í016

689,289

634,458

ID

761

7

8
9
10

22

23
24
25
26
27
28
29
30

208,623

77,810

29/ 3 ,5 9 6 ,5 3 4

198,357

2 ,1 3 8 ,8 1 7

21,876

32,955

212,958

31

32
33
34

Compiled net profit or net loss (15 less 31)
Net income or deficit 22//32 less (6 -/■ 7) J
Net operating loss deduction 23/

4 ,7 9 3
2,604
930

3 ,5 4 1
3,509
477

30/5,050
30/6,405
493

30/64,164
3Cy 170,815
2 ,631

30/98,965
30/205,589
2 ,086

34,800
34,774
545

30/94,545
30/96,098
13,190

84,938
84,744
1,536

178,352
177,882
11,532

63,328
63,123
4,041

63,473 30/1.655
63,285 30/1.666
3 ,486
423

1,510
1,504
132

30/ 19,548
30/ 191968
1,391

32
33
34

35
36
37
38

Normal tax 24/
Surtax 25/
Declared value excess-profits tax
Excess profits tax 26/

1,837
465
19
283

5,439
1,492
64
1,345

1,893
540
12
41

23,873
8 ,2 7 4
100
4 ,3 1 4

17,111
6,271
14
1,964

6,762
2 ,004
87
2,349

28,126
8 ,478
461
2 ,9 0 9

24,757
7.198
55
4,690

31,923
8,695
2,213
39,236

14,536
4,068
590
3,732

13,685
3,845
517
3,430

480
137
13
88

371
. 106
59
213

2,830
799
115
1,396

35
36
37
38
39'

39

Total tax

40

Compiled net profit less total tax (32 less 39)

41
42

Dividends paid:
Cash and assets other than own stock
Corporation’s own stock

For footnotes, see p. 9,

2 ,604

8 ,3 4 1

2,4 8 6

36,561

25,360

11,202

39,973

36,699

82,067

22,945

21,478

7JS

749

5,140

2,190

31/4.799

3^/7,536

31/100,726

31/124,325

23,599

31/134,518

48,239

98,284

40,383

41,995 3^/2,374

761

31/24,689

12,333
240

20,216
37

12,552
339

123,774
9,430

105,923
9,255

17,851
175

86,636
3 ,4 3 2

95,218
455

33,228
2,726 j

32,226
1,027

29,286
1,027

429

2,510

- -1

16,220
" 189 j

40
41
42

Footnote«

\J

The industrial classification is based on the business activity reported on the return.
When multiple businesses are reported on a return, the olassifioation is determined by the
business activity which accounts for the largest percentage o f total receipts.
Therefore, the industrial groups do not re fle c t pure industry classification s.

zj

The industrial group investment trusts and investment companies" consists o f corporations
which derived 90 peroent or more of receipts from investments and which a t no time during
the taxable year had investments in corporations in which they owned 50 peroent or more
o f the voting stoolc.

3/

The industrial group "Other investment companies, including holding companies" oonsists of
(1) corporations which derived 90 peroent or more of reoeipts from investments and whioh
a t some time during the taxable year had investments in corporations in whioh they owned
50 peroent or more of the voting stook and (2) corporations which derived less than 90
peroent but more than 50 peroent o f receipts from investments.

4/ number o f returns shown exoludes 40,160 returns of inactive corporations.
5/

"Gross sales" oonsists of amounts reoeived for goods, less returns and allowanoes, in trans­
actions where inventories are an income-determining factor. For "Cost of goods sold,"
see "Deductions."

6/

"Gross reoeipts from operations" oonsists of amounts reoeived from transactions in whioh
inventories are not an income-determining factor. For "Cost o f operations," see "Deduotions,"

T/

"Interest reosived on Government obligations, wholly taxable" consists of interest on
Treasury notes of the National Defense Series and obligations issued on or after Maroh 1,
1941, by idle United States or any agency or instrumentality -thereof, reported as item 8 (b),
page 1, Form 1120.

0/

"Interest reoeived on Government obligations, subjeot to declared value excess-profits tax
and surtax" bonaiets of interest on United States savings bonds and Treasury bonds owned im
prinoipal amount o f over #5,000 issued prior to Kerch 1, 1941, reported as item 8 (a ),
page 1, Form 1120.

9/

"Interest reoeived on Government obligations, subject to surtax only" consists o f interest
on obligations of instrumentalities o f the United States (other than obligations issued
under the Federal Farm Loan Act, or under suoh Act as amended) issued prior to Maroh 1,
1941, reported as item 31, page 1, Form 1120.

10/ "Interest reoeived on Government obligations, wholly tax-exempt" consists o f interest on
obligations of States, Territories, or p o litica l subdivisions thereof, the D istriot of
Columbia, and United States possessions; obligations of the United States issued on or be­
fore September 1, 1917; Treasury notes Issued prior to December 1, 1940, Treasury b i l ls ,
and Treasury certifica tes o f indebtedness issued prior to March 1, 1941; obligations issued
prior to March 1, 1941, under the Federal Farm Loan Act, or under suoh Act as amended; and
United States savings bonds and Treasury bonds owned in principal amount of #5,000 or less
issued prior to March 1, 1941.
11/ Amount shown as "Hants and royalties" consists of gross amounts received. The amounts of
depreciation, repairs, in terest, taxes, and other expenses, which are deductible from the
gross amount received for rents, and the amount of depletion, which is deductible from the
gross amount of royalties received, are included in the proper deduction items.
12/ "Net oapital gain or loss" is the net amount of gain or loss arising from the sale or exchange
o f oapital assets. The term "Capital assets" means property held by the taxpayer (whether or
not connected with trade or business) but excludes ( 1 ) stook in trade or other property whioh
would properly be included in inventory i f on hand a t the close of the taxable year, ( 2 )
property held primarily for sale to customers in the ordinary oourse of trade or business,
(3) property used in trade or business, of a character whioh is subjeot to the allowance for
depredation, and (4) Government obligations issued on or after Maroh 1, 1941, on a discount
basis and payable without interest a t a fixed maturity date not exceeding one year from the
date of issue. Capital gains and losses are classified as "short-term" i f the assets were
held 18 months or less, "long-term" i f the assets were held for more than 18 months. In
computing net income for the current year, a net short-term capital gain and a net long­
term oapital gain or loss are included but a net short-term capital loss is excluded.
However, a net short-term capital loss (in an amount not in excess o f the net income for the
year in which the loss was sustained) may be carried forward and applied against any short­
term capital gain of the succeeding taxable year not already o ffset by capital losses of
such succeeding year. This carry-over is restricted to one year.
13/ "Net gain or loss, sales other than capital assets" is the net amount of gain or loss arising
from the sale or exchange of property used in trade or business, o f a character whioh is
subjéo t to the allowance for depreciation.
14/ "Dividends, domestio corporations" is the amount reported iij column 2, schedule E, page 3,
Fora 1120. This amount is subject to income taxation under chapter 1 of the Internal

preoeding table

Revenue Code and is the amount used fbr computation of the dividends reoeived oredit.
There is excluded from this amount dividends from corporations organized under the China
Trade Act, 1922, and corporations entitled to the benefits o f seotion 251 o f the Internal
Revenue Code (corporations receiving a large portion o f their gross income from sources with­
in a possession o f the United States) suoh dividends being included in "Other reoeipts."
IS/

"Dividends, foreign Corporations" i s the amount reported in oolumn 3, schedule E, page 3,
Form 1120, and is not used for the computation o f dividends received oredi't.

16/ "Total oomplled reoeipts" exoludes nontaxable income other than tax-exempt Interest reoeived
on certain Government obligations.
17/ Items of deduotions for whioh specific headings are provided on the return, when reported In
"Cost o f goods sold" or "Cost o f operations,” are not transferred to -their respective head­
ings but remain in the amount tabulated as oost.
18/ Amount shown as "Repairs* i s the oost of incidental repairs, including labor and supplies,
whioh do not add materially to the value o f the property or appreciably prolong i t s l i f e .
19/ The item "Taxes paid" exoludes (1) Federal income tax and Federal bxoess profits taxes, (2)
estate, inheritance, legacy, succession, and g ift taxes, ( 3 ) inoome taxes paid to a foreign
oountry or possession of ths United States i f any portion is olaimed as a tax oredit, (4)
taxes assessed against looal benefits, (5) Federal taxes paid on tax-free oovenant bonds,
and (6) taxes -reported in "Cost o f goods sold" and "Cost of operations."
20 /

The deduction olaimed fbr "Contributions or g ifts" is limited to 5 peroent o f net inoome as
oomputed without the benefit of this deduction.

2l/ Amount shown as "Amortisation" is the deduction provided by the Second Revenue Act o f 1940 whioh
allows fbr the amortisation of the oost o f emergency fa c ilitie s necessary fbr national defense.
22/ "Net Inoome" or "Defloit" is the amount reported fbr declared value exoess-proflts tax com­
putation adjusted by excluding net operating loss deduction (items 30 and 26, respectively,
page 1, Form 1120).
23/ The "Net operating loss deduction" is the net operating loss carry-over reduoed by certain
adjustments. In general, the net operating loss oarry-over is the sum o f the net operating
losses, i f any, for the two preoeding taxable years. I f there is net inoome in the f i r s t
preoeding taxable year, the net operating lose fbr the seoond preoeding taxable year i s re­
duced to the extent suoh loss has been absorbed by suoh net inoome.
24/ "Normal tax" inoludes #305,621,885 incoate and Income defense taxes reported on returns for a
fisca l year ending in period July throu^i November 1941 and on returns for a part year be­
ginning in 1940 and ending in 1941, ths greater part o f the accounting period falling in 1941;
and #2,641,946,342 normal tax reported on returns for the calendar year 1941, on returns with
a fis c a l year ending in period January through June 1942, on returns fbr a part year be­
ginning and ending in 1941, and fbr a part year beginning in 1941 and ending in 1942, the
greater part of the accounting period falling in 1941.
25/ The surtax levied under seotion 15 of the Internal Revenue Code, as amended by the Revenue Aot
of 1941, applies to taxable years beginning after December 31, 1940. The surtax shown in­
oludes a small amount reported on returns with no net income, «here receipts for the taxable
year include interest on obligations of oertain instrumentalities of the United States, de­
scribed in note 9, suoh interest being added to the net income for declared value exoess-proflts
tax computation in the process o f oomputing -the surtax net inoome.
26/ The excess profits tax shown i s that imposed by seotion 710 o f the Internal Revenue Code as
amended and should not be oonfttsed wiih the declared value excess-profits tax. For returns
with taxable year beginning in 1940, the amount tabulated is the excess profits tax lia b ility
reported on corporation excess profits tax returns, Fora 1121. For returns with taxable year
beginning in 1941, the amount tabulated i s the excess profits tax deduction (item 35, page 1,
Form 1120) allowed in the computation of normal-tax net income.
27/ Amount shown as "Compensation of officers" excludes compensation of officers of l i f e insurance
companies idiich file Form 1120L. Data not available.
28/ "Other deduotions" shown for the major group "Insurance carriers, agents, e to .," inoludes
speoial deduotions of li f e insurance companies relating to reserve for dividends and
reserve funds required by law.
29/ See notes 27 and 28.
30/ Compiled net loss or d e fio it.
31/ Compiled net loss a fter to tal tax payment.
32/ Less than #600.

Division OF PUBLIO RELATIONS
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Remarks :
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1 7

TREASURY DEPARTMENT
Washington

FOR RELEASE, AFTERNOQf NEWSPAPERS
Friday, March 3, i q k k

press Service
Ho. ^0-85

Secretary of the Treasury Morgenthau today may public the
fourth in the series of tabulations which will appear in the re­
port "Statistics of Income for 19^-1, part 2, " compiled from cor­
poration income and declared value excess—profits tax returns,
excess profits tax returns, and personal holding company returns.
These data are prepared .under the direction of Acting Commissioner
.of Internal Revenue Harold N». Graves.
The accompanying tables show data from corporation income
and declared value excess-profits tax returns with balance sheets,
classified by major industrial groups in table 1 and by total
assets classes in table 2.

Tabulated under each classification

are the number of returns, items of assets and liabilities as of
the close of the taxable year, items of compiled receipts and
compiled deductions, compiled net profit or net loss, net income
or deficit, net operating loss deduction, normal tax, surtax,
declared value excess-profits tax, excess profits tax, total tax,
compiled net profit less total tax, and dividends paid by type of
dividend.
The industrial classification is based on the business activity
reported on the return.

When multiple businesses are reported on

a return, the classification is determined by the business activity
which accounts for the largest percentage of total receipts.
Therefore, the industrial groups do not reflect pure industry
classifications.

-

2

~

In analyzing the data compiled from returns classified under
the major group ’’Insurance carriers, agents, etc,,” it should he
noted that life insurance companies are required to include onlyinterest, dividends, and rents in gross .income,-

For 1941, as in

prior years, such companies are allowed to report as deductions
the earnings needed to maintain reserve funds required hy law
and reserve for dividends,.

Ihe ¿Reductions for these reserves are

$47,234,125 for returns with net income and $965,969,542 for rer
turns with no net income,

Table 1 . — Corporation returns with balance sheets, 1 9 4 1 , by ma j
to juatrtal groups, for roturas with net income and returns with no net Incomet 1 / Number of roturas
liabilities, c o ^ U e d receipt
----16t profit
D
rOIlT. or
o
r* (
M
r. loss,
IM
A. not
nat income
í nm
raen a
w
* deficit,
4
- and
1 d
JX
ui dse-n d <
..
receipts, compiled deductions, compiled net
net
or
iv
s.¿,¿ d V t ^ S ¿IwJdlnd^“
^ » 0 'f„
incomes Net operating
loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total t a x f ^ d c o m ^ e f n e t ^ t t l £ a total £ £

“ ?
nSt

----------- ^Monsy figures in thousands of d on.-. )

All industrial
groups

¿g-.g8g3»B g8»p g feftSfefctfifc& fegg3g

«gag a«

Number of returns with balance sheets 5/
Assetsi
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 2/
Other investments
Gross capital assets £/ (except land)
|
Less reserves
Land
Other assets
Total assets gj
L iab ilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
16
Capital stock, preferred
17
Capital stock, common
16
Surplus reserves
19
Surplus and undivided profits 10/
20
Less d e fic it 11/
21
Total lia b ilitie s g /
Receipts:
22
Gross sales 12/
29
Gross receipts from operations 19/
Interest on Government obligations:
24
Wholly taxable 14/
25
Subject to declared value excess-profits tax
and surtax 15/
26
Subject to surtax only 16/
27
Wholly tax-exempt X I f
26
Other Interest
29
Rents and royalties 18/
«
Net capital gain i g f
Net gain, Amiss other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations 22/
Other receipts
Total compiled receipts 25/
Deductions:
Cost of goods sold 24/
Cost of operations 24/
Compensation of o fficers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortisation 28/
Net long-term capital loss 19/
Net lo ss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net p ro fit or net loss (55 less 51)
Net income or d e fic it 1 / /SZ less (26 ♦ 27)_7
Net operating loss deduction 29/
Normal tax 50/
Surtax 51/
Declared value excess-profits tax
Excess profits tax 92/
Total tax
Compiled net profit less to ta l tax (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes, see p. 18.

Total lining and
qu*irrylng

Net
income
246,195

No net
Inerme
160,858

4,051

96,164, 542
45,474,992
28,829,287
24,597,544
48,907,474
112,697,040
56,905,846
6,210,102
. 4,746,550
265.521.625

5,464,379
5,779,704
1,228,385
12,150,088
51,446,562
20,803,099
5,506,238
3,599,928
2,164,918
76.930.625

423,26C
443,59!
280,181
168,60!
1,000,972
5,445,52!
2,824,843
81,964
139,612
5,158,675

13,579,659

2,770,511

297,295

7,417,482
35,984,076
78,865,771
13,514,707
60,485,440
8,560,275
48,721,843
3,607,608
263.521.625

1,,824,485
111,511
13,558,244
453,344
45,861,942
277,879
2,699,560
138,733
11,091,145 1,958,701
1,504,553
171,866
7,870,764 1,982,701
8,250,558
235,555
76.950.625 5,158,675

140,632,960
24,306,553

7,641,935
4,155,774

2,687,098
191,926

29,345
292,581

8,515
167,910

145
1,207

55, 0m
147,598
1,506,698
1,417,015
123,386
134,704
2,033,264
170,955
1,197,548
172,047,659

7,449
50
127,946
Ij566
1,016,930
6,702
628,242
34,725
26,624
7,756
30,470
4,487
137,405
49,544
8,561
2,521
152,984
25,574
14,089,544 5,012,902

104,970,861
6,007,574 1,668,239
12,652,691
2*106,485
110,213
53/ 2,932,118
52/432,546
59,705
1,689,293
330,642
12,458
1,429,888
150,544
56,250
492,285
210,514
5,561
1,897,269
657,099
24,307
4,534,435
586,205
123,687
56,496
1,088
766
5,180,950
483,251
122,697
458,840
63,949
206,756
110,145
2,382
911
559,064
376,741
7,515
93,021
126,439
1,118
34/19,210,874 54/5,982,281
200,392
1/154,048,211 55/15,497,341 2,580,551
17,999,428 37/1,407,797
452,551
17,796,797 32 1 543,191
430,935
521,706
19,018
2,895,600
78,403
782,521
22,176
62,769
558
5,322,795
37,411
7,065,685
158,348
10,935,745
37/1,407,797
294,005

/,

6,408,488
154.909

147,951
10.815

300,433
1.264

4,19!>

Major industrial groups 2/
Mining and quarrying
Anth]
Bituminous coal,
Meta; . mining
mb
income
51!

59,05'
227,89!
88,31!
124,48!
58,572
147,10!
105,76!
10.99C
604,04'
173,865
2,332,872 1,978,23:
959,49 1,045,22!
20,98:
52,734
53,903
80,83!
1,908,184 2,209,947
199,221

722

71

10,689
12,463
14,551
14,099
7,902
7,005
1,123
5,512
31,907 - 27'383
427,231 295,130
177,655 155,529
17,587
2,812
14,470
5,393
347,808 214,267

No net
income
67

Net
income
785

.

No net
income
¡2

8,260
55,033
8,385
120,854
6,747
37,666
3,365
19,459
14,720
146,505
159,150 '1,021,718
49,388
476,692
966
21,331
5.550
16,153
157,735
961.986

Crude petroleum
and natural gas
Net
income
1,91

4
82,11
1
172,75
9
44,37.
5
25,37!
6
191,24!
9 1,780,26!
4
979,49'
7
17,98!
8
23,44!
4 1,358,07]

Normstallic mining
and quarrying
Net
income
92!

No net “

2,08!

543

1

25,47'
55,66!
23,83!
2,26.
70,75!
966,956
445,392
16,044
18,694
734,294

45,47!
47,40!
43,934
12,48!
31,622
367,394
169,078
18,727
15,605
411,574

2,345
6,799
4,800

4,897
91,874.
37,121
4,793
3,121
81,618

2
3
4
5
6
7
8
9
10

n

100,035

31,211

13,292

12

66,700
204,415
38,609
22,156
325,262
25,728
142,559
.191,169 [
754,294

10,824
29,593
21,549
25,584
146,321
20,213
143,699
■17,419
411,574

5,044
18,941
4,481
10,251
32,733
1,350
16,942
21,398
81,618

13
14
15
16
17
18
19
2021

28,290
4,144

22
23

1

24
25

No net ‘
income

110,371

24,450

14,151

7,075

64,968

47,0544

76,S7C

104,006
10,287
487, n e
63,270
110,927
145,885
104,942
27,021
806,754 901,902
55,849
61,848
460,656
929,018
421,890
39,656
1,906,184 2,209,947

11,765
28,239
13,258
6,965"
213,755
10,495
110,056
71,151
547,808

4,264
57,392
15,769
.1,029
75,522
6,455
61,657
21'951
214,267

1,355
104,218
,22,196
2,851
35,565
1,789
6,069
28,359
157,753

23,672
119,555
41,595
56,036
363,873
25,432
319,291
S2,235
961.986

0

62,36!
183,531
52,981
29,062
471,701
55,900
528,139
101,980
1,558,071

71,965
5,826

153,021
7)725

87,925
5.551

781,057
51,360

507,104
100,107

136,036
52,610

295,941
19,118

21
183

290

(2SÍ46

-

16
574
1,539
17,548
405
446
3,159
170
6,778
865,255

325
2,607
7,563
6,124
2,811
8,455
1,771
9,822
646,790

611,534
97,214

948,652
12,950

131

1C»
495

24
49
410
1,468
2,128
15,551
5,505
1,445
989
2,099
631
2,411
36,262
112
577
8,719
3,504
740,734 1,012,230
456,991
75,255
11,979
4,219
15,215
3,238
20,819
33,592
46
47,281
48,271
380
9,440
3,017
97,859
805,402
37/62.668
37/62,719
m

—

•e
37/62,668
10,398
37

578,241
7,989
4,873
764
15,562
728
4,094
47,672
304
34,206
82,695
780
1,596
120
29,531
809,156
203,074
202,641
2,674
35,360
10,245
42
20,841
66,488
136,587
145,423
22

9
157
(50)

10
60
518
71
227
353
84
476
79,594

6
74
1,928
2
216
39
(3§)
3,110.
166¡286|

48,054
4,186
875
234
1,779
55
792
5,585
(3§5
3,976
7,950
201
1,419
568
13,800
89,050
52/9,455
37/9.466

119,21J
4'940j
l)569|

*

37/9,455

1
2,0471
J -

255J

3,493)
4851
2,28^
7,774j
28j
3,885
3 ) 982 )
SL0
1
8,448
156)844
9)442
9,456
3,195
1,553
'393
5
402
2,133
7,310
4,030

145
2,795
(36)
22
159
780
97,418
72,320
5,129
511
568
2,219
,
335
4,517
3,759
(5§3
2,377]
5,068
1,798

16

4,559
100,956
57/3,538
32/3,539

37/3,558

Z

2
4
3
1

(1§)

597,516
34,555
9,999
3,576
19,056
1,054
6,621
29,825
85
2$,650
17,205
18
1,600
405
58,885

f

(3fii

12
520
3,998
1,352
1,144
769
28
4,532
200,828

227,932
24,530
1,991
1,295
6,753
1,497
4,358
14,211
22
15,138
9,654
167
3,311
1,025
25,811
806,428
335,672
56,805 57/12,938
56,215 JSZ/12,964
4,526
10,093
2,772
101
5,886
18,853
37,952 37/12,938

204,958
65,051
52,403
56,272
12,563
6,826
5,611
2,058
6,642
1,191
1,848
1,117
9,182
10,064
29,019
8,615
202
10
44,584
25,054
92,821
27,128
4
8
3,077
2,269
262
1,508
72,021
48,155
535,197
253,527
111,595 52/32,498
111,264 52/32,5U
7,202
•w
22,184
—
6,131
—
32
—
•
2,689
51,036
80,557 57/32,498

17,724
273

110,042
656

2,625

-

5,418
9

no

4
80

-

(MÍl

26
27
28
29
30
31
32
53
54
35

167,746
20,752
10,093
2,648
10,560
1,708
2,456
251
11,499
1,055
1,438
216
2,106
1,038
9,350
1,047
146
13
15,258
2,588
9,955
223
110
4
723
524
330
89
51,338
4,841
271,089
56,773
51,255 37/5,446
51,178 32/3,447
1,401
9,401
2,625
see
178
7,587
19,790
51,444 32/3,446

36
37
58
39
40
41
42
43
44
45
46
47
48
49

4
53
- 551
2,377
257
382
1,427
3
2,346
322,324

23,164

-_514_

27
220
22
196
55
(3§)
'370
53,328

153
27

so

51
52
53
54
55
56
57
58
59
60
61
62

Tabl® i ? r r >ra™ T , r*tUrns, b a l a n c e

sfceete, 1941, by major Industrial groups, for returns with net income and returns with no net incomes 1/

Number of ret,,™

(Money figures in thousands of d o lla r s )_______________________

Number of returns with balance sheets 5/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
i
Inventories
Investments, Government obligations 7/
i
Other investments
Gross capital assets ¿/(except land)
e
Less reserves
(
Land
1C
Other assets
U
Total assets 9/
L ia b ilitie s!
IS
Accounts payable
Bonds,notes, mortgages payables
IS
Maturity less than 1 year
14
Maturity 1 year or store
15
Other lia b ilitie s
16
•Capital stock, preferred
17
Capital stock, common
18
Surplus reserves
19
Surplus and undivided profits 10/
20
Less d e fic it 11/
21
Total l ia b ilitie s 9/
Receipts:
22
Gross sales 12/
25
Gross receipts from operations 15/
Interest on Government obligations:
24
Wholly taxable 14/
25
Subject to declared value excess-profits tax and
surtax 15/
~
26
-Subject to surtax only 16/
27
Wholly tax-exempt 17/
28
Other Interest
29
Rents and royalties 18/
30
Net capital gain 19/~~^
51
Net gain, sales other than capital assets 20/
52
Dividends, domestic corporations 21/
55
Dividends, foreign corporations 22 /
54
Other receipts
55
Total compiled receipts 25/
Deductions:
56
Cost of goods sold 24/
57
Cost of operations 24/
58
Compensation of officers
59
Rent paid on business property
40
Repairs 25/
41
Bad debts
42
Interest paid
45
Taxes paid 26/
44
Contributions or g ifts 27/
45
Depreciation
46
Depletion
47- Amortization 28/
48
Netlong-term capital loss 19/
49
Net lo ss, sales other than capital assets 20/
50.
Other deductions
51
Total compiled deductions
52 Compiled net profit or net loss (35 less 51)
55 Net income or d e fic it j/ /S2 lees (26 ♦ 27J/
54 Net operating loss deduction 29/
55 Normal tax 50/
56 Surtax 51/
57 Declared value excess—
profits
58 Excess p rofits tax 52/
59
Total tax
60 Compiled net profit less to ta l tax (52 le ss 59)
Dividends paid:
61
Cash and assets other than own stock
62
Corporation* s own stock.___________
For footnotes, see p. 18»

Mining and quarrylng-Con
Mining and quarryTotal manufacturing
ing not allocable
Net
No net
Net
No net
income
income
Income
income
25
124
56,165
22,480
275
189
99
32
166
2,582
819
125
181
2.829

1,250
775
5
1,234
26,864
15,798
1,126
1,521
16,958

224
100

205
99
1,383
17
917
114
2.829
1,545

668

6,013,394
10,489,292
15,716,958
2,517,012
8,025,551
40,926,436
19,286,890
1,866,550
1,262,971
67,529,255

136,000
368,618
461,013
17,571
222,956
1,975,208
884,710
130,908
113,962
2,541,526

7,358

5,972,709

505
2,374
2,090
237
7,871
139
2,368
5,984
16,958

2,523,573
5,243,684
6,642,235
5,291,910
18,891,687
5,963,001
19,715,938
715,282
67,529,255

6,089
679
-

202

*
(3£)
2
4
2
1
4

-

(3§/)
39
1
1

15
2,039

22
6,832

767
432
140
16
18
8
20
46

4,882
491
68
14
240
21
51
576

US
99
9
168
1,837
202
201

20
52
10
£3$
7
48
154
49

Food and kindred
products
Net
Income
income
5,959
2,942

Net
income
1,848

No net
income
854

Net
income
181

95,542
197,681
362,461
24,746
114,127
744,838
253,004
56,537
44,556
1,387,485

4,246
17,852
23,465
181
5,518
106,628
38,196
8,752
7,178
135,623

67,47'"
203,09C
673,156
21,536
93,298
243,679
93,U9
9,693
9,902
1,228,713

No net
104

Cotton
manufac
Net
income
706

475,161
883,012
1,554,781
108,439
776,945
3,476,929
1,544,959
278,919
■ 120,716
6,129,944

15,527
41,961
50,572
2,835
14,703
332,904
160,145
40,816
9,793
348,967

409,842

475,266

49,966

151,816

18,036

H2,783

1,458

61,5 9 1

244,822
457,902
242,343
1,050,045

413,194
492,679
302,364
662,758
1,860,669

36,006
66,178
17,253
43,887
151,714

515,685
634,743
2,541,526

1,719,4U
84,690
6,129,944

55,499
75,050
348,967

104,680
180,349
96,448
63,317
292,526
32,425
497,697
11,772
1,387,485

18,569
24,172
8,992
7,535
58,707
978
26,757
28,123
155,623

30,412
118,581
97,059
136,423
415,479
21,586
297,083
693
1,228,713

1,485
845
556
2,678
7,025
80
8,732
2,847
19,813

8 8 ,5 0 5
54,422
8 6 ,0 0 7
96,096
4 2 6,615
70,826
4 3 3 ,6 1 0
23,023
1 .2 9 4 .6 4 9

85,483,221
1,869,934

2,729,027
151,962

12,536,786
59,562

596,620
12,338

2,063,092
6,664

146,731
1,294

1,542,465
1,607

18,716
22

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

1,345
10,756

28
187

41
718

4
25

20
206

(s§)
1

10
324

(3&Î

170

1,202
8,458
97,831
223,312
15,445
24,857
497,558
81,228
589,585
88,704,350

4
143
4,059
10,304
1,U 2
5,119
2,745
133
19,053
2,901,875

74
776
10,299
17,821
1,401
1,974
36,648
13,095
50,040
12,729,235

1
17
367
1,451
255
168
106
8
2,770
614,128

8
197
2,269
5,476
198
635
2,820
140
11,833
2,091,549

104
454
88
67
59
1
914
149,714

46
108
2,456
2,587
204
61
4,354
753
6,612
1,561,585

47
21

1 ,5 2 5
6 ,9 3 7

1 7 8 ,6 5 6

61,520,555 2,128,608 10,266,855 488,540
.1,214,898
81,768
14,248
7,760
1,227,606
93,616
97,244
11,486
296,144
29,644
50,959
5,845
1,131,215
20,627
94,457
4,846
169,716
17,637
23,502
1,866
516,636
26,260
33,540
5,744
2,223,508
80,668
181,Ç40
8*345
28,507
151
2,515
24
348
1,524,055
65,605
152,529
13,191
289
190,101
7,869
518
36
87,157
•»
816
552
2
119
189,888
33,526
31,822
1,782
14
51,896
13,363
7,800
2,763
715
8,075,150
451,203
1,164,574
83,667
7,624 78,247,029
3,049,353 12,081,755 631,697
'57/793 10,457,501 57/147.478
647*500 37/17[570
37/795 10,447,642 37/147.624
646,650 57A7.S87
—
138,400
—
11,200
— 1,725,816
126,211
437,240
..
30,694
m
41,771
2,034
mm
2,676,594
69,693
— 4,881,221
m
m
228,632
37/795
S ,576,080 ¿7/147,478
418,867 52/17,570
2

Manuf a c tu ri nr
Beverages

2,787,156
75.370

13,106
319

269,079
2.650

1,501

1,152,220
85,196
1,684
617
30,516
3,184
5,433
908
13,840
1,182
4,411
882
10,789
1,S51
322,522
29,968
1,060
7
35,635
5,056
3
1
81
2
1,395
531
833
862
307,722
30,792
1,888,142 158,738
203,407 57/9.024
203,201 37/9.024
3,381
42,215
—
9,298
—
508
19,552
i—
71,373
132,034 52/9,024
68,925
663

156

824
6,409
6,043
87
431
8,354
3,022
180
506
19,813

6
37
mm

74
18,925

1,142,133
134
5,319
1,296
2,034
605
5,953
107,733
265
7,556
-

14,886

mm

m.

•m

645
153
154
46
79
512
(3§)
147

12
3

212
245
552
2 ,5 6 7
41
10,4 7 8
1 ,9 3 3 ,8 5 4
1 ,4 9 2 ,4 5 2
3 ,141
1 7 ,6 3 2
1 ,5 3 4
22,206
1 ,3 0 5
7 ,0 0 4
39,976
271
33,573

11

372
799
268
14
121,621
2,549
1,395,268 19,965
166,317 37/1,040
166,162 37/1.040
107
mm
34,516
10,079
8
•
18,005
mm
62,606
103, 7U SZ/1,040
94,143

102,644
1 9 3,149
358,847
22,940
6 0 ,1 2 2
1 ,1 0 0 ,1 1 6
587,472
27,779
1 6 ,5 2 4
1 .2 9 4 .6 4 9

42
-

214
1 ,8 7 2
3 ,3 1 6
9 5 ,7 7 0
,7 2 0 ,2 7 6
213,578
213,364
9 ,2 8 6
40,5 4 7
6 ,2 6 2
669
4 3 ,8 7 0
91,349i
1 2 2,229
39 ,8 6 2
847

incomes

Net op eratin g io s a deduction, nonna! t a x , S u rta x , d e n i a l value e x c e s s - p ^ k t s ^ « c l o r i t i

^ ^ n e t T ^ m

f a s ^ ^ T ^ ^ i n ^

(Money fig u r e s in thousands o f d o lla r-; )

94
53
54
35
36
57
38
39
40
41
42
45
44
45
46
47
48
49
50
51
52
55
54
55
56
57
58
59
60
61
62

Number of returns with balance sheets 5/
Assets]
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except land)
Less reserves
Land
■ Other assets
Total assets 9/
L ia b ilities]
Accounts payable
Bonds, notes, mortgages payable]
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
I
Total lia b ilitie s 9/
Receipts]
| Gross sales 12/
Gross receipts from operations 13/
| Interest on Government obligations]
Wholly taxable 14/
Subject .to declared value excess-profits tax and surtax 15 /
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/
Net gain, sales other than capital assets 20/
Dividends, domestic corporations 2 1 '
Dividends, foreign corporations 22
Other receipts
Total compiled receipts 23/
Deductions]
Cost of goods sold 24/
Cost of operations 24/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortisation 28/
Net long-term capital loss 19/
Net lo ss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net profit or net loss (35 less 51)
Net income or d e fic it 1_/ /s2 less (26 ♦ 27j7
Net operating loss deduction 22/
Normal tax 50/
Surtax 31/
Declared value excess—profits tax
Excess pro fits tax 52/
Total tax
Compiled net p rofit less to ta l tax (52 less 59) 1
Dividends paid] '
Cash and assets other then own stock
Corporation's own stock_______
For footnotes, see p. 18,

1
2
3
4
5
6
7
8
9
10
U
'

12

15
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
58
39
40
41
42
45
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Tabliei » M 7i
r®t urnswf ^ balance sheets, 1941, by major Industrial groups, for returns with net income and returns with
1/ Number of returns, assets and
liabilities, rcompiled
receipts,
deductions, c
compiled
net profit
profit or
or net
net loss,
loss, net
net income
income or deficit, and dividends paid by type of dividendTZZZZr:
rrnrr T
* S3 compiled «^uci^ons,
c m p u e a net
also for returns with net
income, Net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total taxfand compiled net profii

(M< ney ligures in thousands of dollars)
Major industrial erou
Printing tnd publishin g
indu stries
income

8 3 g g S 8 $S P g

Assets,
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except land)
le ss reserves
Land
Other assets
Total assets 9/
L ia b ilitie s,
Accounts payable
Bonds, notes, mortgages payables
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e ficit 11/
Total lia b ilitie s 9/
Receipts,
Gross sales 12/
Gross receipts from operations 15/
In terest’on Government obligations,
Wholly taxable 14/
Subject to declared value excess-profits tax
and surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/
Not gain, sales other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign, corporations 22/
Other receipts
Total compiled receipts 23/
Deductions,
Cost of goods sold 24/
Cost of Operations 24/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortization Z &
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net profit or net loss (35 less 51)
Net income or d e fic it 1/ /52 less (26 27)_7
Net operating loss deduction 29/
Normal tax 30/
Surtax 31/
Declared value excess-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less to ta l tax (52 less 59)
Dividends paid.
Cash and assets other than oirn stock
Corporation's own stock
For footnotes, see p. 18,

Chemicals and allie«
prc ducts

Petroleum and coal
products
Net
No net

clay, and

Iron, steel, and
Net

No net

Nonferrous metals anc
Net

No net

income
4,127

4.078

1,970

399

175

2,089

972

5,133

*923

1 7 9Í5

552

14,070
62,885
30,772
4,525
57,481
245,769
98,246
12,064
24,987
354,506

536,489
805,151
1,152,531
282,714
900,036
3,334,266
1,372,750
127,611
97,951
5,864,019

13,177
22,799
27,217
2,938
47,865
96,723
57,062
6,024
8,935
188,617

510,789
915, 575
970,947
112, 764
1,717,526
8,066,517
4,229,858
309,532
101,336
8,475,127

27,113
32)648
52)693
1,789
13)447
408)890
214)802
IS )081
8)l95
343)054

201,385
247,874
346,005
121,827
211,057
1,555,078
731,924
65,437
37,759
2.054.496

4,482
11,305
16,255
725
6,033
145,863
69,358
9,856
4,313
129.474

864,908
1,236,559
1,896,625
332,828
720,505
6, 531,495
3,222,128
269,459
144,528
8.774.780

8,814
21,128
30,540
482
8,774
79.782
31,775
4,831
6,753
129,328

131,720
310,084
431,559
85,683
577,935
1,061,842
462,519
44,269
36,164
2,016,736

7,050
18,044
86
1,693
46,530
24,254
1,792
1,347
54.511

191,617

52,386

499,605

a , 616

549,296

79,909

133,315

60,446
183,172
154,620
218,030
588,258
50,272
764,363
44,482
2,166,296

40,228
63,789
27,940
45,454
119,200
7,331
97,314
99,337
354,306

208,602
249,073
508,998
678,615
1,635,302
387,002
1,834,674
37,851
5,864,019

18,714
34,233
8,749
9,571
60,506
31,167
38,702
34,441
188,617

155,265
1,023,117
291,676
287,033
3,455,419
406,434
2,360,917
54,031
8,475,127

9,886
54) 557
5)875
3,425
166,339
4,454
63)430
44,819
545)054

33,032
112,643
176,837
152,274
736,910
83,999
659,734
54,250
2.054.496

2,017,182
121,812

307,881
53,335

6,059,214
41,770

120,097
2,039

5,566,985
247,157

262,770
5,649

2,155,572
8,177

100
934

13
78

100
1,285

4
15

50
754

1
2

52
789
3,347
10,227
1,070
673
17,908
1,234
19,901
2,195,250

42
899
1,826
112
346
583
34
4,979
370,129

241
1,414
8,608
16,496
1,428
773
72,620
7,898
20,712
6,232,560

1
14
195
658
66
29
911
3
1,229
125,262

140
385
13,855
44,935
1,116
2,523
188,461
2,795
27,798
§,896,931

167,728
347,016
206,086
92, 543
408,795
1,281,643
494,175
88,522
68,138
2,166,296

1,309,742
58,617
89,064
23,266
9,430
8,155
11,171
44,474
1,653
37,911
38
58
3,527
759
384,215
1,982,054
213,176
212,335
5j456
40,369
11,541
370
16,854
68,934
144,242
87,293
4,223

219,838
3,848,772
82,920
29,159
5,724
904
19,852
87,238
5,496
6,967
16,508
1,255
1,242
72,871
877
4,358
14,958
1,993
4,036
16,640
1,840
7,270
115,994
2,316
33
2,233
6
6,645 )
137,656
3,078
4
5,494
40
6
10,943
55
2,261
12,404
1,305
628
2,054
1,565
89,355
869,346
51,792
391,651
5,218,635 155,416
37/81,522
1,013,925 37/10,154
57/21.565
1,012,269 57/10,170
« I
4,370
«
168,096
**
44,869
.—
1,971
»
£41,911
o.
456,847
57/21,S22
557,078 57/10,154
1,113
1

334,842
14,150

857
16

3,741,282
156,540
14,761
a , 007
77,582
17,150
53,322
217,417
850
259,637
159,710
7a
28,790
2,657
665,263
5,386, 7 a
' a o ) 2i i
509,687
4,251
77,409
22,239
284
22,805
122,737
387,474
288,515
15,791

5
274
1,675
120
959
151
998
272,582

172,405

6,862

11,456
21,679
19.783
7,257
52,844
1.946
. 21,616
28,831
129,528

61,280
172,576
194,857
276,440
411,096
156,162
605,900
15,982
2,016,756

3„632
26,065
1,976
2,703
18,555
1,707
4,209
10,976
54.511

72,278 11,421,424
1,610I
52,322

116, 111
1,214

2,653,571
74,018

56.512
421

65
258
2,041
5,602
919
1,151
* 9,551
5,415
12,236
2,201,380

1,400,450
4,142
41,008
6,135
45,180
4,834
7,065
45,568
986
58,835
1,908
696
4,779
1,476
253,804
1,856,867
344,514
344,190
2,870
a.
59,595
m
16,249
n j
649
1
82,174

37/5,495j
_____

21,578

207,078
1,092,376
923,368
625,658
2,279,378
377,795
2,286,818
56,949
8.774.780

9,223
29,590
13,357
15,962
60,951
2,a6
50,865
44,902
129.474

II
16 j

205,037
3,267
893
1,332
l)985
'622
2,655
5,486
(5§J
1 0,6ft
6,465
1
7,186
648
53,852
278,077
57/5,495
57/5,498

4,826

11,932 1,039,259

,110
1,076

66
595
9,494
19,929
676
2,401
28,867
4,068¡
37,526
11, 578, 556
55,463 8,237,790
1,046
30,238
3,826
158,332
35,861
657
1,766
287,045
485
11,859
1,693
79,945
2,256
222,545
7
3,440
3,183
251,051
99
3,671
16,720
402
16,152
■ 86?
11,018
82,752
37/7,522
37/7,557

26
174
2,369
2,635
462
284
17,374
6,502
7,810
2,745,544
88,575
602
3,594
723
1,921
1,739
887
3,403
3
2,723
4
183
2,876
152
18,905
126,288
57/7,522
37/7,535

.259,838
65,211

1,967,544
49,477
58,848
257
44,536
2,105
6,748
514
34,961
172
5,139
198
7,071
326
48,261
1,100
1,065
5
57,528
1,169
3,209
5
9,862
255
4,669
123
806
72
167, 201
4,949
2,375,448
60,724
570,096 57/3,468
569,896 57/5,468
2.058
57,789
16,042
1 ,0 2 2

¿¡7/7,522
107,441
1 ,5 SI

2,221

645
175

37/7,522
274,624
5,343 1

1,222

110,485
185,556
134,760 37/3.468
81,986
1,246

60

Table 1. - corporation returns with balance sheets, 1941, by major industrial groups, for returns with net income and returns with no net income: 1/ Number of returns assets and
liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by typo of dividend: also for returns with net
income.:, Net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit less total tax - Continued
------------------------------------ ------ I-------— ------------------------------ (Money figures

E lectrical machinery
and equi pment

1
2
S
4
S
6
7
8
9
10
11
12
IS
14
IS
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
S2
53
54
55
56
57
58
59
60
61
62

Number of returns with balance sheets h/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
.
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except land)
Less reserves
Land
Other assets
Total assets 9/
L ia b ilitiest
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
Total lia b ilitie s 9/
Receipts:
Gross sales 12/
Gross receipts from operations 13/
Interest on Government obligations:
Wholly taxable 14/
Subject to declared value excess-profits tax
and surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 1*7/
Other Interest
Rents and royalties 18/Net capital gain 19/~
Net gain, sales other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations 2f/
Other receipts
Total compiled receipts 23/
Deductions:
Cost of goods sold 24/
Cost of operations 24/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortization 28/
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net profit or net loss (35 less 51)
Net income or d e fic it
/SZ less (26 + 27)7
Net operating loss deduction 29/
Normal tax 30/
Surtax 31/
Declared value excess-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less to tal tax (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corcoration’s own stork
fo r footnotes, see p. 18.

Net
income
1,20,9

No net
income
592

227,009
502,330
801,217
141, 593
308,887
967,553
482,432
44,186
35,965
2,546,307

1,814
4,883
9,819
30
3,892
15,959
3,880
374
i 2,019
34,910

254,426

in

thousands of dollars)_________ ______________________________

Machinery, except
Automobiles
transportation equip - ment, excep
ment and electrical
Net
Net
income
income
4,498
1,033
532
j

644,910
1,215,688
¡ 1,694,086
I 389,649
443,515
2,639,462
1,261,491
119,093
94,028
■ 5,978,939

10,636 Ì

5,455
16,620
23,169
641
5,125
69,891
30,979
4,491
4,271
98,682

No net
income
167

Transportation equip­
ment, except
automobiles
Net
No net
Income
income
546
241

573,586
479,800
896,671
589,370
503^993
2,122,346
995,359
59,841
72,819
4,105,088

2,123
4,739
14, 593
52
2, 513
25,796
15,308
1,916
762
37,186

465,780
764,772
1,045,393
104,165
167,397
1,056,134
374,571
69,319
124,599
3,422,989

9,737

429,953

538,670

16,520

271,853

70,571
77,716
477,(710
73,480
742,786
170,729
690,942
12,052
2,546,507

6,982
3,774
1,676
4,671
12,032
647
6,069
10,578
34,910

160,916
¡
236,986
1 822,454
1 450,497
! 1,595,866
493,836
! 1,750,157
70,443
! 5,978,939

10,601
15,970
7,135
13,229
51,303
2,196
15,417
35,689
98,682

127,854
69^061
326'242
243,099
732,384
637,922
1,705,802
9'128
4,105,088

3,640,084
7,377

30,898
341

6,969,535
87,044

75,941
3,421

6,386,737
1¡718

42,625 2,808,027
224 ¡ 1,008,777

44
398

-

(3§J

117
1,793

(S§4
13

417
515

21
154

(3§)
49
98
28
125
25
1
271
31,836

130
1,457
14,466
35,580
1,329
3,445
12,474
8,573
36,577
7,162,521

5
180
625
86
204
184
(sai
735
81,395

' 21
331
5,533
8,557
266
291
43,400
14,774
18,604
6,481,163

25
159
3,001
5,294
382
472
10,704
412
21,542
3,858,971
1,953,026
808,624
22,852
8,789
58,145
5,979
6,753

206
469
3,316
6,861
473
852
13,374
3,264
11,655
3,688,371

2,384,627
24,244
2,996
211
41,173
1,412
9,373
459
42,348
171
3,1H8
104
4,579
423
96,684
800
1,396
1
57,380
760
14
5,072
103
7, §P3
52
1,907
346
369,735
6,194
3,027,977
35,268
660,394
37/3.432
659,719
37/3.432
4,712
- j
96,918 j
27,54?
- J
1,737
- 1
237,832
- I
564,030
296,564 J 37/3,43?
1
14S,615
20
678 _[_

4,359,340
6,355
143,211
15,738
109,916
26,418
15,997
153,378
3,673
110,734
411
14,936
19,303
4,?53
858,127
5,841,769
1,320,752
1,319,165
8,881
210,076
47,531
6,835
433,096
697,537
623,215
255,304
6.648

53,300 4,950,037
2,047
37
3,995
25,122
778
4,550
673
82,375
601
1,955
t
1,138 ¡
7,143
1,909
197,316
3
1¡697
1,97-3 1
92,445
I
64?
2!
30.
8,250
1,202
9,216
871
676
18,913
248,336
87,437
5,629,801
37/6.042
'851j 363
37/6.047
851,011
5,780
131,757
•
36,034
_
2,513
260,610
_
430,914
37/6,042
420,448
1

318

254,385
527

(1§)
66
148
16
348
1
251
43,681
34,851
63
931
259
856
299
163806
1
1,020

10
2,645
*14
5,177
47,094
37/3,415
37/3,413

7 5 ,9 3 6
521
3 7 ,5 6 3
30
14 ,9 4 9
4 ,8 6 9
2 ,4 3 0

Other manufac­
turing

Manufacturi
allocai

Net
Income
2, 582

No net
Income
1,301

Net
income
1,643

5,992
10,013
14,151
114
1,693
23,577
4,400
2,497
14,347
67.984

125,963
239.646
350,734
41,920
125,612
473,332
219,171
21,912
23,436
1.181.383

2,750
16,015
Í39
4,472
33,213
10,895
2,344
2,753
62,801

45,075
93.142
141,667
13,361
51,724
259,704
122,543
13,871
12,641
508.542

3
4
5
6
7
8
9
10
11

12,010

7,858

104,912

10,632

53,257

12

56,834
48,449
166.647
68,219
343,655
72,010
332,851
12,194
1.181.383

6,432
13,787
5,269
7,375
26,783
1,196
12,412
21,084
62,801

29,414
42,098
49,111
48,531
142,656
15,729
142,889
15.143
508.542

13
14
15
16
17
18
19
20
21

25,153
10,391

1,499,433
11,698

66,857
3,652

804,465
3,105

22

8
129

24
25

2
67
638
1,803
63
302
2,538
412
4,644
818,175

26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
£1
£2
53
54
55
56
57
58
59
60

37
101

340
36,028

17
92
2,135
3,763
177
307
6,500
1,941
8,581
1,534,780

1
89
353
5
24
82
75
637
71,778

22,865
7,966
1,353
284
374
125
4E3

936,868
5,672
48,708
10,113
11,198
9,654
4,138

558,797
1,368
27,216
3,532
7,066

1 ,1 4 6
(3 § )
760
1
98
336
360
5,503
41,622

3 3 ,1 3 0
914
20,838

49,472
2,345
4,825
1,532
414
703
603
1 ,6 1 9

1 3 ,5 7 1
252
10,5 8 3
134
739
898
909
9 9 ,3 7 9
729^361
9 3 'e i 5

(5§5
20
75
13
31
5

5

I
1

3,030

4

1 ,3 7 7

7

-

-

37/3,413

2 3 ,7 2 7
2 ,5 1 3
2 9 1 ,5 2 9
4 2 3 ,5 0 7
30 0 ,1 0 3

99,506

_

37/5,594

1 1 2,695

37/ 5,982

2,411
14*493
3 ,9 2 7
1 ,3 2 9
20,3 3 2
4 0 ,0 8 2
4 8 ,7 3 3

7
______15

9 4 ,1 7 7
3 .0 1 1

56,589

103
S3

1 6 ,9 7 1
1 .108

37/5.594
37/5.594
-

39
_________r ___

3.560

19
460
451
13,9 2 6
7 7 ,7 5 9
37/ 5.98?
37/ 5.9S3
-

23

1,888

lCSf733

134,891

2

6,461
8,972
29,540
5,689
12,041
393
20,024
22,993
67.984

1 ,5 0 7
14,7 4 3
900
22 4 ,6 8 7
1 ,3 2 3 ,0 7 6
211,703
2 1 1,595
3 ,6 0 7
34,6 0 7
9 ,441
1 ,1 9 7
53,863

3 ,1 3 5 ,3 6 2
72 3 ,6 0 9
72 3 ,4 2 6
6 ,0 1 0

1

88,746

.

2
3

61
62

Income:

Il
$■

,

li
li
1
li
li
li
1£
1S
2C

za
zz
Z5
Z4
25
26
27
28
29
SO
51
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

^™“ le d 8S S u c k o n ^ o X S d rn ^ p ™ S t 1o ?rT O r i o f r
Net o p e r a t e i c e s deduction, normal ta x , ¿ u r t a l ,

Number of returns with balance sheets 5/ 5
Assets:
~
Cash 6/
Notes~and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
—
Gross capital assets 8/ (except land)
less reserves
Land
Other assets
Total assets 9/
L ia b ilities:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e ficit U/
—
Total lia b ilitie s 9/
leceipts:
Gross sales 12/
Gross receipts from operations 13/
Interest on Government obligations:
Wholly taxable 14/
Subject to deolared value excess-profits tax and
surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/Net gain, sales oilier than capital assets ZO/
Dividends, domestic corporations 21/
~
Dividends, foreign corporations 23/
Other receipts
'
Total compiled receipts 23/
eductions:
— '
Cost of goods sold 24/
Cost of operations 7?/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes pai d 26/
Contributions or g ifts 27/
Depreciation
Depletion
\
Amortization 28/
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
—^
Total compiled deductions
mpiled net profit or net loss (35 less 51)
t income or d e ficit 1J /52 less (26 + 27)7
t operating loss deduction 29/
z
rmal tax 30/
rtax 31/
claretTvalue excess-profits tax
cess profits tax 32/
. Total tax
spiled net profit less to tal tax (52 less 59)
rid aids paid:
jash art assets other than own stock
iorporation’s own stock

For footnotes, see p. 18.

Total public
u tilitie s
Net
No net
income
lnoome
* 11,823
6,582

Net
income
7,957

W±th " ° n e t ' :Lnco*ne:

No ne
income

Net |
income

No net
income
§5?

Other public
u tilitie s
Net
income
27S581

V

No net.
income

Number o f re tu r n s, a s s e t s a
^ T L III Z ^ O ^ L

m s

Net
income
~8372S£

No net
income
1

1,762,221
1.444.971
911,620
180,841
5,446,500
49,224,001
9,300,876
421,630
1,409,081
51.499.990

262,095
182,893
101,706
6,736
545,410
6,593,573
1,035,154
63,114
251,791
6.972.162

1,095,982
753,341
, 504,461
105,030
3,640,566
25,235,287
4,686,105
205,294
775,824
27.629.679

237,489
135.789
86, 545
4,521
496,118
5,697,671
842,014
49,829
213,194
6.079.142

89,054
198,874
87,218
8,861
294,403
5,708,062
1,636,702
16,092
56,293
4.822.156

5,479
7,715
3,190
21
5,632
160,069
49,967
766
2,800
135,-706

577,185
492,755
319,941
66,950
1,511,531
18,280,652!
2,978,069
* 200,244
^-576,965
19.048.154

19,127
39,388
11,971
2,193
43,660
735,833
143,173
12,519
35,796
757.314

1,196,404

1,808,162
6,030,366
6,394,528
289,859
1,827,092
4,952,509
2,166,551
784,932
453,310
20.374.206

345,621

111,554
/ 423,313
' 446,574
7,947
200,263
685,950
276.200
87,724
72,588
1.759.714

801,781

284,300

134,746

8,372

259,877

52,949

4,132,521

450,745

12
13
14
15
16
17
18
19
20
21

342,213
19,885,109
3,236,530
3,110,683
16,456,799
681,228
7,325,466
734,441
51.499.990

174,615
3,823,714
1,358,435
545,358
1,813,292
83,441
375,777
1,548,092
6.972.162

146,507
10,934,872
2,233,130
732,989
7,837,296
389,388
5,220,528
' 666,811
27.629.679

121,879
3,335,772
1,315,011
465.790
1,551,065
58,651
.286,347
1,339,653
6.079.142

7,760
1,173,763
234,744
146,187
2,785,726
24,424
343,567
28,762
4.822.156

2,366
121,015
2,927
7,159
34,034
9,255
23,333
72,755
135,706

187,947
7,776,475
768,665
2,231,507
5,833,777
267,415
1,761,370
38,868
19.048.154

50,369
366,927
40,497
72,410
228,193
15,556
66,097
135,684
757.314

1,585,586
1,414,742
1,346,688
1,117,836
5,551,710
593,689
5,085,201
453,768
20.374.206

155,272
13,347,960

21,665
1,618,768

186,052
303,167
115,392
107,992
722.200
40,041
259,915
425,790
1.759.714

94,359
7,842,394

,905
,679

7,280
1,614,555

1,015
27,945

55,633
3,891,011

2,735
139,143

50,820,719
868,488

3,816,386
171,826

157
2,362

19
153

11
44

286
3,265
342
1 ,2 0 2

72,1S2
251,290
5,150
22,471
155,348
1,795
53,749
14,050,282

26
124
5,669
25,081
623
1,471
2,621
41
12,659
1,688,924

110,473
7,235,457
115,423
461,164
23,971
23,058
848.971
1,029,646
4,846
910,319
13,935
19,266
151,815
8,262
1,041,696
11,996,302
2,053,980
2,052,437
63,952
410,672
118,484
1,043
164,771
694,970
1,359,011

37/135,941

1,058,484
4,237 I

9,090
502

14,256
1,114,996
19,337
85,117
8,067
3,105
168,229
108,731
.
67
82,083
1,038
824
21,295
13,260
186,461
1,824,865
37/135,941
$7/136,090
-

(3§J
(H i

102

730
44,039
201,118
2,524
16,418
74,453
762
35,199
8,514,618
63,785
4,912,731
81,962
393,478
19,494
8,635
475,007
483,551
1,191
292,736
3,536
17,430
141,031
5,489
522,893
7,422,947
891,£71
890,838
54,444
166,872
47,612
936
85,316
300,736
590,934
334,844
2,049

116
260
905
554
441
925
10,669
1,512,629
11,685
1,020,370
17'009
77,449
7,010
2,492
147,762
96'623
63
62,528
32
791
15,112
5,400
157,460
1,621,786
37/109 ;156
$7/109,275

»
«
3^/109,156
4,747
502

69
2,817
24,515
384
55
15,754
29
' 2,941
1,666,458
3,453
747,091
9,326
31,662
1,544
5,024
47,948
145.383
1,058
190,057
4
9
-1,136
844
163,867
1,348,406
318,053
317,978
1,244
65.383
18,980
51
30,752
115,146
202.907
201,279
569

( f f}
18
540
29,890

717
195
7,176
34,081
37/4,191
3^ 4,191

57/4,191

10

11

24,761,544
562,604

299

25,295
25,657
2,242
5,998
47,142
1,004
15,609
4,069,206
43,235
1,575,635
22,136
36,024
2,933
9,400
326,016
400,712
2,597
427,526
10,396
1,827
9,649
1,929
354,936
3,224,949
844,257
843,620,
8,264
178,417
51,892
76
48,703
279,087
565,170
522,361
1.619

1,905
78,862
1,481
4,594
2ël
366
18,861
10,619
2
16,034
1,005
33
5,466
7,664
21,824
168,998
37/22,594
37/22,624

37/22,594
3,936

22
25
24
25

1 ,6 8 8

“
64
306

2
3
4
5
6
7
8
9

166
1.675
76,087
99,581
5,559
7.676
55,645
31,203
497,053
52,465,841

26
82
4,097
12,529
743
1,553
1,382
2,295
35,552
4,046,570

52
793
26,701
21,800
2,372
3,133
30,104'
6,707
139,571
25,556,215

26
27
28
29
30
51
32
33
34
35

40,669,628
352,120
925,691
632,748
108,895
162,862
127,850
472,375
13,451
267,627
983
1,299
37,456

3,106,187
118,575
121,448
83,393

21,448,305
203,722
416,272 j
89,537
24,349
61,842
51,505
143,476
4,826
67,027
468
408
16,241
3,499
2,078,413
24,609,890
946,325
945,480
21,117
164,443
41,283
9,421
167,685
382,833
563.492

36
37

8 ,1 2 0

12,112

22,280
18,806
44,863
296
37,018
322
78
9,906
4,103
588,644
4,168,031
37/121,460
37/121,568

6,438,330
50,273,435
2,192,405
2,190,565
51,824
388,915
104,626
14,865
344,614
853,020
1,339,385

37/121,460

567,904
23,714

. 7,788
51

Table 1« — C orporation re tu rn s w ith balance s h e e ts , 1 9 4 1 , by m ajor in d u s t r ia l groups, f o r re tu rn s w ith n e t income and re tu rn s w ith no n e t incomes 1 / Number o f re tu r n s , a s s e t s and
l i a b i l i t i e s , compiled r e c e i p t s , compiled ded u ction s, compiled n e t p r o f i t or 'net l o s s , n e t income or d e f i c i t , and dividends paid by type o f dividend; a ls o , f o r re tu rn s w ith n et
incomes Net operatin g lo s s deduction, normal ta x , s u rta x , d eclared value e x c e s s - p r o f it s t a x , ex ce ss p r o f i t s t a x , t o t a l t a x , and compiled n e t p r o f it l e s s t o t a l ta x — Continued
(Money fig u r e s In thousands o f d o lla r s ) _________________________
Major in d u s t r ia l groups 2/ - Continued

4

1
2
3
4
5
6
7
8
9
10
U
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Number of returns with balance sheets 5/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except land)
Less reserves
land
Other assets
Total assets 9/
L ia b ilitie s:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
\Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e ficit 11/
Total lia b ilitie s 9_/
Receipts:
Gross sales 12/
Gross receipts from operations 13/
Interest on Government obligations:
Wholly taxable 14/
Subject to declared value excess-profits tax
and surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/
Net gain, sales other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations 22/
Other receipts
Total compiled receip ts.23/
Deductions s
Cost of goods sold 24/
Cost of operations 24/ .
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
. Amortization 28/
Net long-term capital loss 19/
Net loss; sales other than capital assets 20/
•Other deductions
•Total compiled deductions
Compiled net profit or.net loss (35 less 51)
Net income or d e ficit 1 J /52 less (26 + 27)7
Net operating loss deduction 29/
Normal tax 30/
Surtax 51/
Declared value excess-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less to ta l tax (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corporation^ own stock
for footnotes, see p. 18.

Wholesale - Continued
Commission
Other wholesalers
merchants
Net
No net
Net
No net
income .
income
income
income
3,286
1,548
22,983
7,048

Trade - Continued
Retail
Food stores, including
General merchandise
market milk dealers
J No net No net
Net
Net
• income
income
income
income
1,453
2,821
, 4,199
,2.861

Net
income
48,049

No net
income
25,751
50,530
186,577
263,006
4,353
57,266
455,310
181, 078
56,361
30,740
923,064

319,140
1,278,605
1,177,593
105,698
326,561
1,473,851
617,272
278,034
112,736
4,454,946

_______________1
Package liquor stores
Net
income

j

829

No net

1 -income

689

7,537
26,668
3,910
860
6,032
11,810
3,685
1,799
4,157
59,089

705,264
2,516,047
2,691,980
94,725
804,588
1,158,058
492,209
160,450
144,757
7,783,659

42,155
153,126
121,704
2,167
112,011
113,335
44,286
14,662
30,803
545,675

842,370
2,679,842
3,087,155
167,254
665,931
3,247,907
1,418,630
523,022
257,685
10,052,536

244,312

25,259

1,768,691

148,624

1,820,936

216,539

912,572

13,141

187,247

34,365

, 8,638

4,672

58,120
44,036
39,686
39,505
160,920
18,486
153,102
21,252
736,915

\ 4,721
7,649
2,482
4,124
24,002
2,426
6,132
17,705
59,089

835,725
517,407
471,496
394,017
2,054,654
215,638
1,664,411
138,380
7,783,659

560,122
752,928
728,200
593,218
2,820,597
296,265
2,690,721
218,451
10,052^536

114,025
167,310
59,127
52,366
388,534
22,677
136,15S
233,668
923,064

96,335
327,220
285,838
290,858
1,200,625
181,343
1,192,229
32,075
4,454,946

6,306
12.909
3,974
3,333
33,822
842
12,262
22,954
63,635

50,714
89,712
48,653
69,521
261,646
23,302
374,059
19,295
1,085,560

10,262
36,076
7,555
5,539
55,184
3,604
27,523
,24,771
155,336

2,325
2,041
1,327
200
5,397
30
3,185
651
22,494

1,444
2,025
671
103
3,726
5
567
1,774
11,439

850,153
293,473

117,820
32,372

23,911,391
269,131

49,359
86,522
41,950
36,116
216,714
9,829
68,910
112,349
545,675
) .■
1,319,815
50,622

22,227,029
224,015

1,951,121
74,085

6,681,637
24,315

82,148
1,300

4,303,445
■17,134

432,052
11,538

71,324
773

10
29

i f

184
611

3
9

87
890

28
53

34
375

6
83

■ 1
21

”

31,736
662
:

4
125
6,879
1,986
253
224
7,218
133
15,041
1,174,527

2
297
346
62
58
52
8
3,166
154,188

48
668
20,822
19,814
2,120
2,909
22,887
6,574
124,530
24,381,689

22
13
1,380
2,650
234
652
421
2,269
8,652
1,386,742

95
635
43,706
-68,191
2,690
3,373
23,304
6,114
324,543
22,924,671

4
61
1,967
8,088
296
697
602
12
20,246
2,057,259

19
243
23,925
35,420
680
775
10,715
6,097
85,166
6,869,400

785,449
53,878
46,757
9,512
1,170
4,932
4,173
8,630
518
3,637
13
31
3,670
618
174,810
1,097*797
76,729
76,601
1,877
11,703
' 3,057
321
15,557
30,688
46,042

-110,918
15,987
7,201
1,504
113
892
400
786
8
581
27

20,662,856
149,844
369,516
80,025
23,180
56,910
47,333
134,846
4,309
63,389
455
376
12,571
2,881
1,905,603
23,512,093
869,595
868,879
19,240
152,740
38,226
9,051
152,129
352-,145
517,450

1,165,538
40,218
26,835
8,249
1,847
-7,585
5,558
8,970
57
6,360
160
3
4,563
1,057
162,666
1,439,466
37/52.725
37/52.759

1,483,272
51,475
72,646
67,325
8,685
10,932
10,808
29,302
195
25,201
100
75
s 2,156
2,567
345,046
2,109,785
37/52.525
37/52,589

37/52,725

16,202,167
119,152
412,438
507,107,
75,286
79,653
64,759
285,553
7,637
173,747
330
800
18,521
3,909
3,921,825
21,872,864
1,051,807
1,051,078
'
25,686
188,178
53,115
4,058
157,240
402,590
649,217

37/52,525

4,380,370
7,438
59,417
172,303
30,232
23,261
24,089
115,902
3,465
62,396
90
644
6,474
867
1,474,685
6,361,634
507^766
507,505
5,299
92,641
26,476
1,172
100^040
220,329
28?i457

190,758
14.028

5,477
5

1,711
34

157,925
l'.326

130,313
340,661
57,566
13,025
132,772
65,5l2
26,778
8,296
15,548
736,915

s

Total r e ta il

20,841
278

\

-

402
105
18,268
157,191
37/5.004
37/3.006
«
«
-

37/3,004
88

•
-

292,265
7.060

A.
-

3,206
15,254
20,775
189
3,332
21,272
6,167
3,272
2,502
63,635'

(3§Î
1
186
841
24
40
25
-

1,937
86,502
62,653
949
3,090
2,711
225
1,086
793
1,377
12
796
27
124
335
16,407
90,584
37/4,082
37/4.083

_

37/4.082
230

150,326
95,228
354,236
16,564
109,296
505,0Q2
218,502
41,273
32,136
1,085,560

9
59
1,637
3,475
537
- 692
3,680
3
13,860
4,544,621
3,470,882
9,752
26,544
53,320
12,771
2,874
6,025
37,970
886
34,792
5
15
.7,132
807
- 594,283
4,258,056
86,565
86,496
1,939
17,101
4,899
Ì08
7,477
29,585
56'980
37,852
'547 1

7,668
23,339
.23,440'
2,147
' 6,463
123,683
43,908
8,256
4,246
155,336

3
43
100
948
53
226
119 .
3
1,792
446,899
348,076
8,921
8,727
7,726
2,750
1,034
1,764
5,270
28
7,069
7
97
452
63,173
455,094
37/8,195
37/8,241
*
“
“
V

37/8,195.
209
9

2,850
1,802
13,472
3 1
242
4,555
1,257
214
613
22,494

1,365
484
6,482
(»ai
193
3,217
802
72
425
11,439

i

1

-

1
53
14
28
(lè i
124
72,318
56,849
644
3,408
1,631
89
42
159
1,244
8
533
4»

(3&)
7
6,451
70,864
1,454
1,454
123
200
63
16
25
305
1,149
94
-

-

CǤ5
25
11
1
(3§)
47
> 32,483

'

25,316
501
1,894
1,081
41
13
87
753
2
217
1
(3£)
% 1
3,289
33,196
57/714
37/714

_
_
«

j
J

37/714
(3§)

j

Tabl® 1 . - Corporation re tu rn s w ith b alan ce s h e e ts , 19 4 1 , by major in d u s tr ia l groups, f o r re tu rn s w ith n e t ln c o m a a ^ d r ^ u i- n ^ !lt !w I^ ie ^ ^ ic o m e
„ _
1/ Number
of returns, a s s e ta and
l i a b i l i t i e s ^ compiled r e c e ip t s , compiled d eductions, ___r .
* V"“
s a *"'•
incomB , or
c i t , and dividends
type o f dividends
tu r > w ith n e t
^
° r ad ee rf li=lfc>
* ? « * * * • paid
v * * by
* H
divid end, a ls o , f o r re
retru-na
incomes Net operatine loss deduction, normal tax, surtax. "T
d ecla red value e x c e s s - p r o f it s t a x , exce ss p r o f i t s t a x , t o t a l t a x , and compiled n e t p r o f it le s s t o t a l ta x
Continued
(Money fig u re s * —
------ > - ,
—£jjjf

Drug stores
I
income

11

18
13
14
15
16
17
18
19
80
81
88
83
84
85
86
87
88
89
30
31
38
33
34
35
36
37
38
59
40
41
48
43
44
45
46
47
48
49
50
51
58
53
54
55
56
57
58
59
60
61
68

Number of returns with balance sheets 5/
Assets:
Cash 6 /
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7 /
Other investments.
Gross capital assets 8 / (except land)
Less reserves
Land
Other assets
Total assets 9/
L ia b ilitie s:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
Total lia b ilitie s 9J
Receipts:
Gross sales 18/
Gross receipts from operations 13/
Interest on Government obligations:
Wholly taxable 14/
Subject to declared value .excess-profits tax
and surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/
Net gain, sales other than capital assets 80/
Dividends, domestic corporation 81/
Dividends, foreign corporations 88/
Other receipts
Total compiled receipts 85/
deductions:
Cost of goods sold 84/
Cost of operations 84/
Compensation of officers
Rent paid on business property
Repairs 85/
Bad debts
Interest paid
Taxes paid 86/
Contributions or g ifts 87/
Depreciation
Depletion
Amortization 88/
Net long-term capital loss 19/
Net lo ss, sales other than capital assets 80/
Other deductions
Total compiled deductions
ompiled net profit or net loss (35 less 51)
et income or d e ficit 1J /Ez less (86 + 27J7
fet operating loss deduction 89/
'ormal tax 30/
urtax 31/
eclared value excess-profits tax
xcess profits tax 32/
Total tax
ompiled net profit less to tal tax (58 less 59)
ividends paid:
Cash and assets other than own stock
Corporation's own stock_______________
or footnotes, see p, IB,

l

income

!

Continued
Trade - Continued
Continued
Apparel and
Furniture and house
Eating and drinking
accessories
furnish!ngs
places_______
I
No net
I
No ne t
Net
income
inoômô
income
income
... Income
1
6,889
3,093
3,676
1,301
3,319
4,612

Automotive dealers
Net
income

2,843

1,938

83,440
23,331
91,108
1,488
9,913
81,929
36,691
3,417
5,998
803,878

1,908
5,136
15,605
60
810
17,575
7,951
557
1,046
32,743

88,642
807,943
331,967
13,994
68,406
831,426
108,366
16,969
83,563
868,545

5,519
18,443
33,761
180
2,716
88,330
9,845
1,021
8,312
76,436

31,393
361,703
' 190,306
4,173
82,771
93,115
37,009
16,066
11,751
694,869

1,967
88,403
16,414
*184
2,489
8^960
3,448
2,111
1,711
52,677

83,935
11,650
81,973
1,437
23,078
173,737
78,720
81,955
8,559
807.604

35,688

10,916

159,395

26,877

109, 974

18,664

29,868

88,968

6,085
14,593
18,453
17,861
63,708
3,515
56,187
5;559
803,872

2,872
5,827
8,107
1,445
17,897
73
2,563
9,756
32,743

42,967
54,937
66,601
74,717
838,118
19,858
845,395
87,437
868,545

8,576
8,834
5,018
4,946
37,138
749
12,731
27,834
76,436

60,649
35,336
118,475
43,792
176,588
20,781
157,049
88,310
694j 869

4,956
7,083
6,098
4,157
23*612
1,400
7,750
15,043
58^677

9,169
84,987
14,583
11,933
65,294
8,148
60,995
11,368
807.604

12,958
33,989
9,351
10,983
33,738
7,716
10,475
36,035
118.143

556,342
1,555

90,316
1,806

8,023,753
16,570

157,724
4,484

857,649
11,359

64,642
1,578

506,817
87,012

864,083
84,718

3,943,456
85,685

-

18
104

2
9
(S§4
8
425
1, 594
18
73 .
1,877
' 5,541
567,842
382,651
642
11,599
25,747
1,958
489
803
7,696
183
5,582
6
(3£)
884'
111
106,344
543,908
23,334
83,386
771
4,335
785
83
1,513
6,716
16,618
7,976

(sefi

6
(3§J
60
12
1,365
206
10,760
5
407
13
66
7
2,368
(3§)
(3§f)
780
40,574
93,145
2,096,045

(3§)
1

•

67,208 1,319,201
1,118
8,482
4,570
62,594
4,678
117,897
889
5,805
110
8,774
858
4,163
1,415
25,004
10
974
1,071
15,177
6
17
83
(3£)
107
988
50
317
14,445
483,343
95,275
1,992,819
37/2,130
103,886
37/8,130
103,160
4,316
18,187
4,939
432
12,902
-,
36,399
37/2,130
66,887
82
10

81,600
1.581

3
33

6
284
835
8?
81
34

8,404
165,206

88,855
963,681

2,545
69,368

107,651
1,668
9,145
18,347
304
1,178
701
1,986
14
1,361
4
5
112
290
34,015
170,788
37/5.576
32/5,576

486,053
3,708
37,780
86,663
8,800
9,409
4,846
15,986
656
5,338
8
5
459
118
313,343
906,561
57*060
57,019
2,506
10,875
8,980
381
5,894
18,869
38,191

42,849
ljl3 5
4^389
8*977
*145
1,066
646
1,015
7
499
14

-

.
_

37/5,576
51

8,937
1.188

1,301

959

80,820
157,903
67,531
89,134
24,781
774.063

14,981
88,908
84,987
4,369
6,232
80,185
39,834
88,158
8,116
144,575

967
3,908
8,308
17
785
11,961
4,560
8,165
603
18.155

111,962

14,648

85,787

4,743

163,666
81,180
63,876
19,154
187,988
17,785
166,469
37,357
774.063

82,781
13,387
6,613
8,146
38,494
728
7,117
17,807
88,094

6,546
10,607
18,413
3,983
58,046
2,180
38,897
1,883
144,575

1,935
4,113
1,388
553
7,436
63
8,086
4,156
18.155

366,677
11,876

308,732
2,737

^50,491
1,893

300
165
17,179
72^387
37/3*019
37/3,025

1
18
5,7^6
1,875
124
304

88

298,089
16,868
19,087
29,818
5,231
474
1,295
18,417
133
11,204
18
(3§i
306
187
185,373
519,174
81,914
21,904
1,233
3,946

688

1,738
898,842

6
31,939
4,069,801

158,761
16,850
11,484
19,468
2,504
274
1,446
7,798
33
7,871
17
5

3,345,503
54,584
84,388
33.041
5,812
10,736
11.041
85,815
520
9,861
15

68

1,133
938
388,848
3,971,640
98,161
98,148
3,309
15,757
4,599
507
15,476
36,339
61,882

300
81,953
301,573
37/8,731
37/8,733

1,002

37/3,019
48

77
956
5,980
15,934
7,159 :
* 28

37/8,731

No net
income

8,867

-

132
1,094
(3&)
3,358
541,087

Net

4,981
18,753
35,800
81
4,489
19,¿78
8,008
2,987
3,848
88,094

(3$)
3
7
159
2,445

Filling stations

7,297

(3§)
1

6
55
8,737
8,144
130
180
490

1
86
589
6
16
16

6,705
4,607
8,143
579
9,881
118,095
47,031
12,911
4,914
112.143

No net
income

10

17,933
688

-

*—
516
366
6
83
84
(36)
3,550
382,510
320,515
9,869
8,479
4,135
595
1,960
1,908
2,371
34
1,104
1
(2Stf
398
236
35,644
386,645
37/4.134
37/4.134

(3§)'
86
36
48
137
8,750
36
116
837
3
■1,978
310,896

37/4,134
143
5

4,867
30

-

_

—

277
53,034

828,907
1,351
5,181
4,606
1,987
796
616
6,101
4*
4,663
13
887
34
41,568
896,033
14,864
14,780
879
8,798
819
35
1,522
5,174
9,689

-

(3§5

13
31
6,674
54,036
37/1,002
37/1,008

37/1,002

Table 1* — C orporation re tu rn s w ith b alan ce s h e e ts , 1941, by major in d u s tr ia l groups, f o r re tu rn s w ith net income and re tu rn s w ith no net incomes 1/ Number o f re tu r n s , a s s e t s and
l i a b i l i t i e s , compiled r e c e i p t s , compiled d ed u ction s, compiled n e t p r o f i t o r n et l o s s , n e t income or d e f i c i t , and dividends paid by type o f divid end; a ls o , f o r re tu rn s w ith n e t
incomes Net o p eratin g l o s s deduction, nonaal t a x , s u rta x , d ecla red value e x c e s s - p r o f it s t a x , e x ce ss p r o f i t s t a x , t o t a l t a x , and compiled n e t p r o f it l e s s t o t a l ta x - Continued

1
2
3
4
5
6
7
8
9
10
11
12

13
14
15
16
17
18
19
20
21

22
23
24
25
26
27
28
29
30
31
32
33
34
35
'36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Number of returns with balance sheets jj/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except lapd)
Less reserves
Land
Other assets
Total assets 9/
L ia b ilitie s:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
Total lia b ilitie s 9 /
Receipts:
Gross sales 12/
Gross receipts from operations 13/ .
Interest on Government obligations:
Wholly taxable 14/
Subject to' declared value excess-profits tax and
surtax IS /
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 13/
Net gain, 'sales other lhan capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations22/
Other receipts
Total compiled receipts 23/
Deductions:
Cost of goods sold 24/
Cost of operations 24/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortisation 28/
Net long-term capital loss 19/
Net loss, sales o tter than capital assets 20/
Other deductions
Total compiled deductions
Compiled
or jioi
net iloss
less oj
51)
-- — **'■*»'net profit wx
u m (35 icaa
.
Het income or d
(26+ 27J
■e-ficit
- !_/
- i j/S2
f i i f less
P
:7J7
Set operating los3 deduction 29/
Stomal tax 30/
Surtax 51/
Declared value excess-profits tax
Sxcess profits tax 32/
Total tax
Dompiled net profit less to ta l tax (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corporation's own s t o c k __________________
or footnotes, see p. 16,

Hardware
Building materials, fuel,
and ice
T—
Net
No net
'ftet
No net
income
income
income
income
1,716
635
5,484
2,412
6,752
31,084
47,902
179
3,590
18, 586
7,670
3,292
1,982
105,497

717
3,654
7,407
17
573
4,027
1,276
486
358
15,762

44,540
226,929
200,665
4,759
49,082
225,575
113,898
58,644
15,654
709,929

5,992
38,145
24,337
738
16,781
66,286
30,013
16,938
4,803
144,006

Ma.ior industrial groups 2/ - Continued
Trade —Continued
Retail - Continued
Other re ta il
Retail trade not
trade
allocable
Net
No net
Net
No net
income
income
income
income
4,894
2,322
3,381
1,209
39,361
172,482
177,122
4,577
21,629
107,348
49,502
14,778
14,141
501,938

7,099
20,451
50,454
65
7,772
- 24,518
9,747
2,097
3,241
105,950

Total
Net

No net

9,964

4,810
U,331
56,943
57,954
567
24,954
105,497
47,151
14,902
6,888
251,886

21,236
84,472
92,427
1,453
li, no
94,756
42,978
11,092
5,675
279,243

2,436
15,999
18,082
157
1,963
19,509
8,353
3,545
1,332
52,689

130,215
493,816
557,826
14,855
223,801
481,03).
228,935
93,165
35,320
1,801,096

Net
17,262

No net
16,034

246,072 I
66,846
308,209
112^235
209j 596
54^155
48,384
' 111762
461,796
89,512
2,015, 573 1,246*984
808,952
'449j 427
367,844
233'459
99,648 i
52*406
2,948,169
1, 4171929

17,208

3,496

91,175

28,661

94,674

22,834

56,754

U,162

298, 582

60,522

273,224

188,035

10,629
7,323
,4,481
2,404
42,835
671
24,197
4,£51
105,497

1,577
1,603
602
707
10,485
50
1,902
4,459
15,762

51,462
53,952
25,300
28,788
288,348
8,085
187,958
25,140
709,929

13,747
24, 0U
4,496
7,541
67,862
1,841
26,543
30,697
144,006

39,853
50,765
58,360
19,981
146,201
11,413
123,009
22,298
501,938

20,446
12,038
6,979
8,861
42,777*
5,290
16,680
29,956
105,950

19,800
20,275
22,458
10,685
97,934
5,157
75,095
8,894
279,243

6,565
6,614
4,282
2,051
22,965
325
7,956
9,026
52,689

131,619
100,571
107,306
91,096
515, 539
63,300
568,966
75,684
1,801,096

17,947
41,687
U ,833
15,586
92,951
5,109
48,718
62,067
231,886

100,357
654^705
176,496
191,176
779^772
116,406
823,053
167,020
2,948,169

94, 034
6521156
147j 422
105^677
388^795
22,678
232j 788
413^656
1,417j 929

191,282
914

20,890
98

1,178,725
12,020

189,907
8,774

952,718
19,458

118,443
4,7U

657,150
4,546

82,073
1,307

3,832,146
81,869

427,650
14,74è

475,722
2,431,227

231,596
711,409

1
2

“

12
44

3
15

4
65

(Âô

7
15

18
158

'1
2

53
252

U
91

(5 0
33
715
316
6
53
95

(3&i
Ï9
60
3
7
(5#
181
21,280

11
51
2,507
4,049
439
542
1,023
2
13,521
1,212,947

(5 0
7
304
1,209
79
U7
213
(3 0
1,840
202,467

2
58
3,170
2,256
85
228
623
2
22,804
1,001,474

•»
1
163
973
51
42
123
7
1,662
126,177

1
21
1,151
1,254
124
184
475
(3 0
14,232
679,159

20
247
5,681
9,590
496
1,171
2,236
18,382
52,939
3,984,954

7
453
1,445"
150
146
507
6
3,487
448,382

22
381
5,339
53,114
1,597
2,189
23', 820
2,884
38,932
3,035,335

6
213
1,168
31*817
703
579
1,288
*245
14,829
993^956

16,228
49
1,354
617
34
185
132
317
5
181
»
*
22
i
2,840
21,966
57/686
37/686

998,578
7,765
40,560
6,047
5,344
9,322
5,556
16,312
344
12,224
54
40
1,059
366
157,059
1,160,412
52,535
52,473
1,962
9,102
2,596
416
3,014
15,128
37,408

148,615
6,897
7,888
1,940
1,197
2,085
1,528
3,088
17
2,876
1
(3 0
757
634
30,999
208.522
57/6.0§5
37/6,063
—
«

660,594
6,256
38,185
25,640
2,174
8,195
3,053
12,885
267
6,471
4
3
369
151
182,772
946,999
54,476
54,41$
2,581
9,046
2,534
506
7,195
19,279
35,197

84,458
2,877
6,988
6,431
293
832
829
1,935
21
1,134
21
64
126
44
25,991
132,044
12/5,867
¿2/5,868
t-+

257,-526
1,530,674
151^132
133,736
52,631
111222
52,069
85,987
1,430
92,440
282
238
12,810
795
637,495
2,780,467
254,866
254,463
8,925
46,155
10,950
724
16,578
74,206
180,660

135,926
355,190
49,090
60,354
18^185
6^041
25,153
40,590
*208
48,993
53
181
6,361
2^363
531,397
1, 060j 085
37/661128
52/66,347

r

2,641
196,059
145,331
334
8,752
3,051
238
1,301
865
2,352
53
1,040
1
29
25
23,481
186,854
9,205
9,171
417
1,412
434
127
773
2,745
6,460
1,184
________ S i.

*•
'm
-

•»
••
52/686
5

14,073
_______SSL .

m
•m

•w
17/6,055
60S

8,530
437

‘i f
328
7
26
21
1,488
85,347

529,219
1,947
15,149
7,942
1,510
4,042
2,249
6,448
162
4,671
113

66,838
714
2,797
1,335
230
855
523
1,000
8
910
32
25
12,435
87,681
57/2.534
52/2,534
«
»

37/5,867

118
42
84,296
657,910
21,249
21,227
950
3,439
1,049
199
1,056
5,743
15,506

¿7/2,334

251
4

4,134
270

61
6

Û

•
m

Si-

•

3,019,156
29,245
96,981
56,105
9,260
21,367
U , 586
43,366
988
26,853
186
92
2,694
712
492,092
3,790,681
194,273
194,006
5,021
56,294
10,228
1,586
19,689
67,597
126,676

(30

346,458
10,896
14,766
6,315
1,467
2,871
2,240
5,805
36
4,877
35
(5 0
2,785
374
62,664
461,589
37/13,207
52/13,214
«.

52/13,207

— *
32/66,128

64,040
512
94,966
1,845
2.543 ________11. _____
________62

:V,I

1/

Corporation r e ta m s with balance s h e e ts , 1941, by major in d u s tr ia l groups, f o r retu rn s w ith n e t income and re tu rn s w ith no n e t incomes
Number o f re tu r n s, a s s e ts and
l i a b i l i t i e s , compiled r e c e i p t s , compiled d eduction s, compiled n e t p r o f i t o r n e t l o s s , net income o r d e f i c i t , and dividends paid by type o f divid end; a ls o , f o r re tu rn s w ith riel
income: Net o p eratin g lo s s Reduction, normal ta x , s u rta x , declared value e x c e s s - p r o f it s ta x , excess p r o f i t s ta x , t o t a l ta x , and compiled n e t p r o f it le s s t o t a l ta x - Continued

places

1
2
3
4
5
6
7
s 8
■9
10
11
12
13
14
15
16
17
18
19
20
21
22

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60 .
81
62

Number of returns'with balance sheets 5/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/(except'land)
Less reserves
~
Land
Other assets
Total assets 9/
L ia b ilitie s:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e ficit .11/
Total lia b ilitie s 9/
Receipts:
Gross sales 12/.
Gross receipts from operations 13/
Interest on Government obligations:
Wholly taxable 14/
Subject to declared value excess—
profits tax and sjirtax .35
Subject to surtax only 16/
—1
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/
Net gain, sales other than capital assets 20/.
Dividends, domestic corporations 21/
Dividends,, foreign corporations 2«!7
Other receipts
Total compiled receipts 23/
Deductions:
Cost of goods sold 24/
Cost of operations U?/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortization 28/
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net profit or net loss (35 less 51)
Net income or d e fic it 1//5Z less (26 + 27)7
Net operating loss deduction 29/
Normal tax 30/
—
Surtax 31/
DeclareH- value excess-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less total tax (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corporation's own stock
For footnotes, see p. 18.

Automotive repair
services and
garages
-Net
No net
income
income
1,408
1,649

income
2,025

income
2,284

Neb
income
4,16'

'No net.
.income
3,484

ÑeT
income
3,239

No net
income
2,799

29,891
22,985
12,759
2,546
35,207
625,638
224,499
127,873
17,483
649,885

24,080
17,772
10,339
2,018
22,520
765,095
266,984
155,149
16,760
746,750

22,316
43,143
29,135
3,173
21,932
352,90C
160,485
27,435
13,484
353,033

4,439
15,743
8,335
-■ 329
9,733
125,399
64,177
10,432
5,075
115,309

79,702
110,502
15,832
10,583
61,602
201,'664
73,487
12,986
23,422
442.805

15,770
31,685
5,126
3,378
12,331
59,386
18,859
1,789
9,052
119.658

4,585
9,772
5,343
806
1,747
51,826
19,796
* 10,319
- 2,313
66,316

1,715
5,238
2,568
5C
1,802
38,381
12,929
16,747
1,836
55,407

Miscellaneous repair
services, hand trades

Motion pictures

Net
income
856

No net
income
55r

Net
income
2,42'

No net
income
1,515

4, 81C
10,822
6,65!
32S
1,003
23,13:
9,468
1,369
802
39,446

491
1,658
1,298
124
5,022
1,678
26C
304
7,478

63, S V
63,e02
132,905
24,01C
305,855
517,076
224,729
146,147
31,989
1,060,638

7,584
17,779
22,499
157
12,405
94,007
35,992
11,743
8,655
138,837

33,335

39,454

37,240

21,352

72,953

40,509

9,403

10,305

6,188

1,975

86,381

29,686

17,802
270,646
28,511
51,480
151,618
7,079
125,924
36,510
649,885

39,447
459,023
■ 87,504
56,106
139,317
7,594
122,319
204,014
746,750

21,893
44,201
21,110
28,985
-124,150
2,954
91,808
19,309
353,033

9,871
26,605
8,501
7,898
/ 55,114
1,688
18,126
33,847
115,309

16,383
34,084
49,455
29,765
130,534
13,063
116,672
20,104
442.805

7,470
18,109
12,306
9,372
42,786
6,109
23,534
40,537
119.658

4,465
16,649
4,245
4,271
19,429
H 758
12,134
5,038
66,316

3,488
•28,449
4,640
3,332
16,925
443
5,245
17,421
55,407

1,884
5,589
3,469
662
13,999
701
9,369
2,413
39,448

681
970
571
257
5,279
16
1,056
3,330
7 ,476

21,868
240,506
34,541
60,775
204,265
82,114
375,116
44,929
1,060,636

15,263
65,620
10^ 628
14,582
31,887
2,713
16,745
48,287
138,837

119,480
240,090

96,893
186,944'

120,219
405,516

49,736
118,815

60,802
597,850

17,310
119,691

50,740
49,385

31,145
21,606

32,026
49,551

8 093
4 280

50,207
775,477

5,308
153,571

2
10

37

6
3
(3£)
3
65
2,028
. 80
280
20
“
2,071
104,681

(5§J

7
31

(3§)
<M)
(36)

6
27
2
8
422
20,269
361
536
1,197
2
5,625
388,025

~

(3§) '

49
406
21,218
278
219
182
10
3,733
309,943

3,980
532,095

68,499
53,643
98,864
77,526
9,662
5,617
23,198
17,004
11,838
12,367
1,151
1,281
11,744
18,008
19,881
23,081
133
63
22,476
25,026
54
11
18
160
566
1,829
101
829
93,181
99,426
361,367
335,871
26,659 37/25,928
26,648 37/25.977
2,133
4,S86
1,198
60
1,410
7,253
19,406 37/25,928

61,010
224,643
35,610
13,193
6,837
2,522
3,085
14,240
287
18,269
11
4
231
'153
123,187
503,281
28,813
28,762
1,570
4,862
1,360
118
1,354
7,695
21,119

6,675
520

861
-

48
251
1,175
105
274
473

7,339
137

1
2
1
3
66
454
48
74
116
(3§J
1,072
170,387
27,290
69,344
12,570
6,583
2,261
1,194
1,460
4,812
28
6,552
2
«

2,321
236
44,357
178,812
57/8.425
"37/8,428

_

57/8,425
253
( M

42,312
330,334
49,531
13,763
3,000
1,962
1,573
11,331
328
11,741
150
3
1,29?
98
156,841
624,264
53,542
53,479
1,207
10,186
2,790
89
3,755
16,821
36,722

11, 245
62,606
12,019
4,162
346
811
725
2,300
16
2,936
2
8
574
643
50,659
149,052
37/7,594
77/7,611

23,685
737

146

37/7,594

33,588
22,518
6,182
10,649
1,167
463
889
2,753
34
4,485
*
18
28
16,771
99,545
5,156
5,132
362
735
231
24
606
1,597
3,539
713
23

(52)
18
2,639
31
8
14
786
56,249
20,785
9,628
3,871
7,950
374
261
1,014
1,896
7
1,571
4
91
112
10,706
58,269
37/2,021
37/2,021
-

■-

37/2,021
21

(3g)
44
79
50
58
10

(55)

385
82,211

58
12, 469

21,612
31,310
6,519
1,129
335
307
294
1,575
23
1,568
1
10
29
4
10,970
75,686
6,525
6,523
238
1,026
304
118
959
2,407
4,118

5, 297
2, 725
1, 459
389
46
95
72
275
1
244
(3§)
8
24
2, 321
12, 956
37/488
37/488

797
79

25

-

«
-

•
37/488
1

228
2,804
16,794
172
439
18,488
2,$39
14,792
881,979

216
3,387
173
49
55
221
2,169
Í65.159

7,028
475,056
16,758
S7,895
5,309
3,130
12,035
21,903
247
22,155
8
201
9,979
231
156,328
788,260
93' 719
93,489
1,527
17,573
3,078
143
3,379
24,172
69,547

3,538
70^629
3'927
17,523
l'l7 0
1,223
l'679
3,332
72
5,397
12
12
568
123
64,905
174'112
37/8'953
37/8,963

44,052
887

292
60

_
_
37/8,953

- i “ - n e t income and re tu rn s w ith no n e t income, 1/ Number o r „ t u r n s , a s s e t s and
o r d e i i c i t , and dividends paid by type o f dividend; a ls o , f o r re tu rn s with n e t
c e s s p r o i i t s ta x , t o t a l t a x , and compiled n e t p r o f it le s s t o t a l t a x — Continued
d o lla r s )
Fin an ce, in su ra n ce , r e a l

1
2
3
4
5
6
7
8
9
10

11
12

13
14
15
16
17
18
19
20

21
22
23
24
25
26
27
.28
<■29
30
31
32
35
54
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7/
Other investments
Gross capital assets 8/ (except land)
Less reserves
Land
Other assets
Total assets 9/
L ia b ilitie s!
Accounts payable
Bonds, notes, mortgages payable!
Maturity less than one year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
Total lia b ilitie s 9/
Receipts!
Gross sales 12/
Gross receipts from operations 13/
Interest on Government obligations!
Wholly taxable 14/
Subject to declared value excess-profits tax and
surtax 15/
Subject Tio surtax only’ 16/
Wholly tax-exempt 17/
Other interest
Bents and royalties 18/
Met capital gain 19/ ^
Net gain, sales other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations ¡5/
Other receipts
Total compiled receipts 25/
leductionsi
Dost of goods sold 24/
Cost of operations 24/
Compensation o f'o ffice rs
Rent paid on business property
Repairs 2{j/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortisation 28/
Net long-term capital loss 19/
Net lo ss, sales other than capital assets 20/
Other- deductions
Total compiled deductions
bmpiled net profit or net loss (35 less 51)
e t income or d e ficit 1/ ¿52 less (26 ♦ 275/
e t operating loss deduction 29/
oratal tax 50/
urtax 5J/
eclared value excess-profits tax
xcess profits tax 32/
Total tax
ompiled net profit less to tal tax (52 less 59)
ividends paidi
Cash and assets other than own stock
Corporation1s own stock
For footnotes, see p. 18,

Long-term credit
agencies, mortgage
companies, except
banks
Net
| No net
income
income
1,634
-LjUoö
17,846
73,007
—
3,671
97,059
10,615
2,551
6,301
7,781
213,929

50,842
70,425
—

7,875
219,032
34,104
2,949
23,108
13,348
395,784

Short-term credit
agencies, except
banks
Net

j

Investment trusts
investment companies
i/

No net

No net

3,282

1,410

2,041

276,967
3,226,366
5,371
7,114
166,890
29,635
11,061
5,215
20,690
5,725,187

10,693
85,568
1,438
773
15,925
3, 505
743
677
4,770
122,607

134,465
149,554
91,773
2,765,092
45,306
8,365
11,839
24,800
3.212.465

1,276

Other investment
companies, including
holding companies 4/
Net

No net

Security and commodityexchange brokers and
dealers
Net

No net

786

789

67,133
857, 491
100,810
922,186
—
20,371
29,861
295,192
1,701,829 18,215,644
23,328
780,861
6,885
264,156
• 13,160
65,696
20,015
166,085
1,949,252 21,055,369

102,624
318,730
2,212
11,576
4,420,099
102,823
36,981
46,880
53,228
5,020,989

S7,893
92,250

59,313
28^760

81,246
.166,497
8,375
5,565
1,127
30,805
434,626

77,556
106,695
10,254
3,022
1,100
18,595
279,247

171,522

97,255

108,233

38,846

10,130

26,055

12

44,816
178,559
513,575 5,615,050
120,597
334,261
512,057 2,470,761
467,720 8,365,550
188,805 1,806,814
645,159 4,327,051
403,522
214,160
1,949,252 21,055,369

248,247
1,286,118
196,008
515,940
1,498,594
597,486
1,519,147
755,805
5,020,989

49,898
26,934
79,815
53,502
67,998
6,505
70,458
8,718
454,626

69,406
40,555
29,222
17,297
58,348
8,515
95,458
79,378
279,247

17,805
8,115
12,191
18,555
89,480
17,167
45,528
16,062
202.689

8,367
120,815
54,645
15,748
79,550
17,948
106,775
125,175
506.484

IS
U
15

5,669
5,600

952
1,199

82
Î3

51,889

546,489

8,314

73,937

29,076
252,099
43,446
24,675
105,525
18,084
30,861
189,869
395,784

1,872,714
530,480
180,893
168,683
428,436
105,703
295, S70
3,782
3,725,187i

27,170
22,420
8,869
11,750
34,206
9,881
14,461
14,464
122,607

40,788
357,152
47,930
312,073
1,140,534
159,049
1,403,661
322,659
3.212.465

10,490

5,580

6,258
256,341

1,238
10,920

1,159

•
5,489

16,130
176,364

405
5,026

95,696

55,462

2L
25

2
U

40
37

1
4

150
972

20
107

505
1,665

24
65

27
144

55
269

5
75
10,996
1,064
828
518
195
(5§J
1,614
25,852

5
1,062
6,865
10,412
107
268
40
(8 Sf
2,444
24,595

10
90
152,594
1,144
580
464
9,267
56
12,680
459,161

16
6,415
208
59
66
63
(5§j
'
1,067
20,057

121
942
16,729
2,304
6,914
175
169,247
5,425
1,891
206,024

15
556
12,056
958
1,204
84
55,705
747
1,678
56,575

818
1,051
155,710
15,608
8,406
456
960,725
43,240
9,425
1,587,898

40
210
23,662
4,770
1,511
56
47,369
2,105
2,584
85,624

128
1,576
2,649
492
934
29,216
5,450
19
5,675
135,802

28
578
1,075
334
838
10,229
1,100
40
2,064
70,090

a.
670
1,651
352
799
2,477
8,214
2,854
5
1,719
4
1,855
5,690
16,972
41,229
57/16,653
S?/17,700
-

5,820
1,455
22,275
8,819
650
26,658
50,852
12,099
470
5,389
2

1,012
1,110
3,290
722
66
3,587
2,569
659
11
206
(5§í

562
442
2,941
408
226
64,197
62,094
5,259
2
2,141
104

m

748
79
10,184
24,225
37/4,166
37/4,185
•-

57/4,166

40
6,920
136,179

10,876
220
70,711
2,258
12,952
328
15,160
64
1,032
11,548
3,117
12,441
133,104
1,587
23,920
5
903
295
21,113
155
988
—
57
60,106
25,596
2,238
1,059
19,258
65,992
110,264
386,520
57/53,688 1,001,578
37/54,239
999,510
—
1,817
—
S7,579
16,470
161
15,525
87,555
32/53,688
913,845

502
12

138,047
293

77
160
9,681
20,431
5,400
5,520
559
958
287
10
55
1,271
4,129

57/16,633

1,041
555
166,175
296,995
142,166
142,065
829
27,814
7,537
64
11,654
47,048
96,118

2,288
226

402
4

75,245
596

-

-

55
5,141
421
63
2,657
15,582
5,895
478
522
502
20,181
1,006
12,644
62,925
145,099
142,037
294
5,515
1,555
10

No net
income
925

771

19,327

-

Net
income
578

1,411

33,907
45,399
34,904
6,839
55,671
5,666
29,644
15,429
215,929

569
5,470
654
152
563
3,688
967
19
447
3

Other finance com­
panies

60,087

19,084
162

794,759
22,672

111,965
2,178
26,078
276,397
37/190.773
57/191,024
—
—
•,
—
37/190,775
27,764
1

62,059
17,192
2,-659
79
192
1,728
2,958
88
405
5

58,758
7,906
5,644
48
967
1,126
1,275
2
328
1

(í i
166
54,995
122,724
13,078
11,574
863
1,695
425
18
271
2,404
10,674

1,250
1,516
21,009
77,850
37/7'740
57/8.546

37/7,740

6,574
240

556
-

_

27,959
21,181
32,491 55,481
1,51.9
922
2,494
1,221
82,916 144,250
83,043 106,192
33,628 25,529
2,442
6,349
3,474 16,437
202.689 306.484

1
2
3
4
5
6
7
8
i9
10
11

16
L7
18
L9
80
81

84
85

(S§)

!6
87

>8
>9
S0

>1
S2
»3

14
¡5

5,969
778
2,567
417
109
1,108
585
1,294
25
5,005
155

748
225
1.311
557
273

«
17
6
9
0

3.312
1,158

2

6,210

2

3,030
72
68
(ISJ
6,712
545
89
6,742
14,971
8,843
29,679
38,951
55,985 5&ft5,457
55,965 B^5,452
461
5,363
1,469
65
1,325
8,217
27,766 E/t 5,437
17,209
57

2,728

1

3

4

Assets;
Cash 6 /
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7 /
Other investments
Gross capital assets 8 / (except land)
Less reserves
land
Other assets
Total assets 9 /
lia b ilitie s :
Accounts payable
Bonds, notes, mortgages payable:
Maturity less thaw 1 year
Maturity 1 year or mere
Other lia b ilitie s
Capital stock, preferred
Capital stock, cannon
Surplus reserves
Surplus and undivided profits 10/
Less d e fic it 11/
Total lia b ilitie s 9 /
Receipts:
Gross sales 12/
Gross receipts from operations 13/
interest on Government obligations:
Wholly taxable 14/
Subject to declared value excess-profits tax
and surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/~~
Net gain, sales diner than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations 2<y
Other receipts
Total compiled receipts 23/
Deductions•
Cost of goods sold ZAj
Cost of operations t y
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortization 28/
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
’— '
Total compiled deductions
Compiled net pro fit or net loss (35 less 51)
Net income or d e fic it 1 / ¿ 5 Z less (26 + 27)7
Net operating loss deduction 29/
M
Normal tax 30/
— '
Surtax 31/
DeclareH- value excess-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less to tal tax (52 less 59)
Dividends paid:
Cash and assets other than cran stock
Corporation's own stock

fteal estate, including
lessors of buildings

Insurance agents,
brokers, etc.

Insurance carriers
.....

5, » 9 "■ " ” ' 1,9M

n ,5 s s

43,05fl

S.46S

1

28:
10,313
12,118
2,040
1,045
4,092
56,566

204,224
376,972
25, 7176,379
702,047
4,685,151
1,383,955
2,014,396
120, UO
6 , 821 ,.Q38

148,225
400,749
40,538
21,79!
713,208
5,641,882
1,450,425
2,358,548
152,285
8,026'600

46,969
78*795
4,542
20*167
132*352
2,224*149
*185)450
153)067
55)781
,2,550)375

2
5
4
S

159,890

28,369

500,607

551,383

34,107

12

3,430,079
6,539
466,610
4,508
1,302,471
2,312
5,207,895

A30,585,831
1,154
226,940
2,358
1,553,384
86,118
32,283,548

8,825
8,915
- 19,146
15,562
65,443
10,568
53,632
6,179
335,802

4,279
5,548
2,515
1,311
17,019
2,566
6,740
11,781
56,566

282,591
2,832,216
255,228
193,971
1,877,115
105,726
1,328,979
355,396
6,821,038

413,874
4,669,491
*504)292
358,769
1,963,760
161,812
1,229,321
1,826,102
8,026,600

28,334
863,995
71)444
103)542
1,051,840
21,482
479,324
123,696
2,530)373

15
14
15
16
17
18
19
20
21

457,564

1,389,105

426,553

178,844

31, 0U

46,082
490,504

34,871
505*276

6 ) 063

5,115

22
25

567
19,972

3,936
142,419

558
19,949

3,935
142,415

23

124
717

33
152

31
258

24
25

1,139
10,677
74,069
19,417
3,058
146
65,227
1,154
11,536
1,774,911

286
91,959
766,923
168,198
5,193
61
30,780
2,478
13,972
1,681,769

1,135
10,656
72,995
18,103
2,589
43
61,744
937
5,156
1,582,969

286
91,958
766,778
167,872
3,055
53
30,730
2,478
12,379
1,648,493

107
1,079
15,079
416,642
7,434
26,249
10,931
87
21,702
1,035,736

19
317
11,091
286*834
2,738
8,279
6*463
62
18,514
874*649

9

1,073
1,314
469
105
3,483
217
6,381
191,942

156
1,639
162)618
1*550
1*149
2^630
32
33,612
214*861

26
27
28
29
30
81
32
33
34
35

20,473
35/44,914
17,295
1,262
2,560
4,845
50,683
636
6,788

8,164
33/12,106
3,909
1,513
1,299
51,808
55,083
15
34,503

33,193
60,492
60,762
41,731
36,281
3,942
124,222
142,896
696
124,166
400
553
6,933
4,073
230,865
871,205
165,530
164,345
12,314
27,062
8,098
420
2,833
38,412
12?) U8

29,686
75)887
36j 486
45*944
47,970
16,042
173,196
173*486
152
133,679
167
57
36,629
41,679
268*608
1,079*668
37/205*019
77/205! 355

63,555
109,288
575
54,535
119,011
19,741
4,618
14,797
5,775
382.459

18,634
146,579
1,617
6,034
152,595
21,135
5,792
15,027
7,387
341.215

627,081
155,254

978,881
25,145

564,93!
1,256

972,51!
.754

62,148
153,998

6,369
24,391

1,164,675
2,989,766
151,611
12,703
12,940
455,073
5.543.697

8,997,578
20,891,858
284,945
5,650
7,586
1,159,751
32.340.114

1,160,937
2,958,611
101,098
5,97!
8,938
438,095
5,207,895

8,997,297
20,881,546
272,829
3,590
6,541
1,155,859
32,283,548

3,738
51,155
50,513
6,730
4,002
16,980
335,802

19,722

68,250

159,890

28,369

29,240
32,854
80,827
26,412
165,894
20,014
101,231
93)735
382.459

21,172
181,695
50,774
69*571
240,502
11,898
73,230
375,877
341.215

8,825
8,915
3,449,225
22,102
532,053
15,076
1,356,103
8,491
5.543.697

4,279
5,548
30,588,346
2,464
243,958
4,924
1,560,124
97,899
32.540.114

13,125

2,505

1,567,949

30
1,217
6,918
3,692
1,165
1,243
1,990
11
1,804
31,391

238
113
10,985
19,650
11,740
10,493
413
1,844
526
9
38
2,419
9,322
10,133
133

92
6,048
467
1,108
387
267
864
11,806

5,317
40,109
9,406
1,496
1,427
4,470
5,679 34/1,409,013 34/1,753,843
25,571 3^/1,600,012 55/1,936,117
37/13,764
174,899
37/254,347
13,861
163,082
5 y 346,592
2,091
21,599
7,388
95
4,307
33,389
37/13,764
141,510
37/254,347
106,004
2,142

16,137
7.287

697
284
33/8,185
33/3.414
11, 375
2,462
900
1,433
1,471
931
3,905
51,473
46,457
54,427
441
3
5, 326
34,205
5
—
39,422
9,108
1,346
4,374
1,325,050 3^/1,738,896
1,444,580 3§/l,901,010
138,389
37/252,517
126,598
37/344,761
1,562
14,926
5,412
13
1,960
22,312
—
116,077
37/252,517
88,401

15,903

1

3
(3§)

21

19,775
36,729
5,919
362
1,090
938
4,226
195
1,462
4
687
82
83,962
155,432
36,510
36,485
529
6,673
1,975
82
2,346
11,077
25,433
17,603

1

145
326
138
8

50
1,593
33,276
m
m
7,880
8,692
1,447
80
367
335
656
U
298
“
'—
298
95
14,946
35,106
37/1.830
37A.831
—
—
37/1,830
234

"

Lessors
propert

70,852

3,659
*382
3,335
2 )1 2 0

1*169
*266
32,340
15)1 9 0

59
5 ,4 9 3

22,464
9
854
122

15,326
102*768
112*095
U l,9 2 8
1, 358
24)222
7 )030

37/205,019

49
4, 608
35*909
76,185

9,056

92,894

6

7
8
9
10

U

36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
S3
54
55
56
57
58
59
60
61
62

Table 1. - Corporation returns with balance sheets, 1941, by major industrial groups, for returns with net Income and returns with no net Income: 1/ Number of returns, assets and
liabilities, compiled receipts, compiled deductions, compiled net profit or net loss, net income or deficit, and dividends paid by type of dividend; also, for returns with net
income> Net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, total tax, and compiled net profit leas total tax - Continued

Number of returns with balance sheets 5/
Assets:
Cash 6/
Notes and accounts receivable (less reserve)
Inventories
Investments, Government obligations 7 /
Other investments
Gross capital assets 8_/ fexcept land)
Less reserves
Land
Other assets
Total assets 9 /
L ia b ilitie s:
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
Maturity 1 year or more
Other lia b ilitie s
Capital stock, preferred
Capital stock, common
Surplus reserves
Surplus and undivided profits 10/
Less d e ficit 11/
Total lia b ilitie s 9 /
Receipts:
Gross sales 12/
Gross receipts from operations 15/
Interest on Government obligations:
Wholly taxable 14/
Subject to declared value excess—
profits tax and
surtax 15/
Subject to surtax only 16/
Wholly tax-exempt 17/
Other interest
Rents and royalties 18/
Net capital gain 19/~^
Net gain, sales other than capital assets 20/
Dividends, domestic corporations 21/
Dividends, foreign corporations 2Zy
Other receipts
Total compiled receipts 23/
Deductions:
Cost of goods sold 24/
Cost of operations 24/
Compensation of officers
Rent paid on business property
Repairs 25/
Bad debts
Interest paid
Taxes paid 26/
Contributions or g ifts 27/
Depreciation
Depletion
Amortization 28/
Net long-term capital loss 19/
Net loss, sales other than capital assets 20/
Other deductions
Total compiled deductions
Compiled net profit or net loss (35 less 51)
Net income or d e fic it 1 / /5Z less (26 + Z7}/
Net operating loss deduction 29/
Normal tax 50/
Surtax 31/
Declared value exce ss-profits tax
Excess profits tax 32/
Total tax
Compiled net profit less to ta l ta x (52 less 59)
Dividends paid:
Cash and assets other than own stock
Corporation's own s t o c k _________________________
For footnotes, see p, 18.

Agriculture, foi estry. and fishery
Agriculture
Forestry
and services
Net
No net
Net
No net
income
income
Income
income
5,104
2,556
170
217

Net
income
7,631

No net
income
5,263

Total agriculture,
forestry, and fishery
Net
No net
income
income
3,408
2,904

174,295
655,157
118,507
28,964
140,343
452,540
228,504
40,421
72,495
1,454,196

20,989
113,290
21,194
4,660
30,579
95,410
47,160
11,998
8,765
259,727

69,167
76,272
122,447
30,549
210,855
557,751
222,799
231,601
20,134
1,086,937

9,262
27,029
23,449
970
64,052
228,792
63,813
112,907
12,218
414,866

55,376
67,937
117,285
29,873
201,692
513,859
211,889
220,755
18,530
1,013,419

7,397
20,220
21,845
515
54,109
160,649
56,416
103,373
9,560
321,252

3,122
6,148
2,587
517
6,781
32,691
7,303
9,567
841
54,751

73,486

131,420

58,212

126,448

45,088

55,198
104,139
38,122
22,933
463,835
48,801
291,956
69,467
1,086*937

35,715
88,233
31,782
18,997
210,247
5,942
105,751
140,013
414,866

52,760
98,485
35,437
20,366
428,064
48,225
262,973
59,359
1,013,419

32,874
74,306
21,162
11,898
170,997
3,855
67,702
104,630
321,252

Construction

295,711

Nature of business not
allocable, except trade

Fishery
Net
income
S 134

No net
income
131

1,802

1,413
4,345
545
450
7,752
62,047
6,013
9,062
2,090
81,690

1,669
2,187
2,775
158
2,362
-11,181
3,607
1,278
763
18,767

452
2,465
1,060
5
2,191
6,096
1,384
472
568
11,924

25,670
62,035
17,351 •
8,348
82,938
112,163
44,530
40,520
11,487
315,981

3,212

11,185

1,759

3,939

36,390

61,864

1,229
4,460
1,582
821
30,199
381
- 21,732
8,864
54,751

2,382
13,009
10,428
6,717
35,516
902
34,327
32,776
81,690

1,209
1,195
1,103
1,745
5,573
195
7,252
1,264
18,767

459
918
192
381
3,734
1,185
3,723
2,608
11,924

21,182
34^905
19,069
15,853
120,457
4,598
94,595
31,068
315,981

44,336
98,513
36,440
49,455
336,514
12i271
110,623
339,891
410il24

Net
3,386
15,684
59,472
12,739
5,343
114i422
204,871
71,468
51,769
17,393
410,124

135,418
74,358
233,348
46,421
298,054
41,166
362,683
32,964
1,454,196

2^,328
32,223
40,327
9,580
89,935
4,158
41,905
59,215.
259,727

365,943
2,582,988

109,238
271,819

479,449
100,460-

74,334
23,990

447,798
93,105

69,046
21,173

8,062
2,767

2,551
1,313

23,589
4,588

2,757
1,504

86,281
39,529

9,982
13,344

28
191

5
38

33
688

2
28

26
683

2
22

8
4

(3$)
6

(3§Î
1

-

126
123

2
21

14
399
1,988
9,860
926
6,547
5,380
191
44,003
3,018,458

(3§)
56
398
2,069
137
727
360
7
2,565
387,418

6
100
1,776
8,610
2,524
1,496
8,457
513
7,628
611,737

1
72
451
1,982
930
254
785
13
2,162
105.,000

5
91
1,507
8,078
.
1,109
749
8,331
503
. 6,903
568,889

1
64
377
1,849
317
195
755
13
1,937
95,752

1
3
229
^ 210
1,394
668
97
10
447
13,899

7
72
95
610
52
27
150
4,883

6
40
322
20
78
29
(3§)
278
28,949

14
221
2,715
5,886
1,709
1,445
2^098
11
4,853
145,012

6
171
891
1,905
271
262
407
38
2,420
29i 719

284,712
2,149,269
110,S45
8,972
14,626
4,976
8,001
33,394
837
34,395
380
554
5,230
492
166,072
2,82?,453
196,005
195;593
11,201
31,312
8,517
2,154
38,534
80,517
115,488

87,461
237,736
20,345
2,570
1,942
2,623
2,038
5,715
34
5,989
11

338,486
29,758
16,911
15,803
9,692
2,024
7,137
12,919
116
20,068
1,629

57,832
13,720
4,337
1,351
1,815
1,229
4,874
3,892
13
5,233
1,807

312,580
26,720
15,684
15,639
9,141
1,783
6,793
11,982
106
19,224
622

53,775
12,428
3,879
1,257
1,582
1,153
3,771
3,136
13
4,851
49

6,006
1,033
458
46
S3
165
185
6?2
7
274
1,006

1,687
372
238
26
15
51
1,040
655

19,900
2,006
769
119
518
76
158
315
4
571
1

2,371
'919
220
67
218
25
62
121

2,424
565
35,523
404,982
37/17,564
37/17,619

2,809
1,449
19,935
120,295
37/15,295
37/15,367

37/11,223

9
114
1,217
11,173
2,727
2,723
412
470
133
12
88
703
2,023

37/3,476

24
6
2,339
26,806
2,143
2,137
131
367
104
„
59
213
743
1,400

(36/

32/15,295

1,542
750
71,432
493,999
74,890
74,794
3,356
13,348
3,741
497
3,411
20,996
53,894

1,7651,331
17,985
106,975
37/11,223
37/11,288

37/17,564

1,575
871
74,988
531,978
79,759
79,653
3,898
14,184
3,978
568
3,712
22,443
57,317

31,165
2.641

549
65

30,387
729

1,182
1

28,338
729

293
1

1,621
-

889
-

429
-

-

-

-

_

•

160
1,757
1,044
111
1,222
8,559
37/3.476
37/3,483
—
_

M
1
37
3
7
1
75
4,365

(56/

222
(3§)
7
727
4,961
37/ 596
37/ 596

37/ 596
(§§)

65,726
12,674
11^ 524
1,798
l i 118
1,006
2,053
: 3,882
73
3,316
325
49
923
479
25,641
1Z8Ì 587
16,426
16,191
1,235
2Ì481
'704
102
1,150
4^437
I l i 989
5,080
125

7,892
4,78Z

4*453
982
369
1,552
3,073

li954
6
1,551
131
4,821
9^210
iziao8
53i584
37/23i865
37/24,042 1

37/23,865
5,921
25 €

Table 2 .- Corporation returns with balance sheets, 1941, by total assets classes: Number of returns, assets and lia b ilitie s , compiled receipts, compiled deductions, compiled net profit or net loss,
net income or d e fic it, net operating loss deduction, normal tax, surtax, declared value excess-profits tax, excess profits tax, to tal tax, compiled net profit
less to tal tax, and dividends paid by type of dividend

Total
1 Number of returns with balance sheets 5/
Assets:
2
Cash 6/
3
Notes and accounts receivable (less reserve)
4
Inventories
5
Investments, Government obligations Tj
6
Other investments
7
Capital assets 8/ (less reserves)
8
Other assets
9
Total assets 9/
L ia b ilities >
10
Accounts payable
Bonds, notes, mortgages payable:
Maturity less than 1 year
U
12
Maturity 1 year or more
13
Other lia b ilitie s
14
Capital stock, preferred
IS
Capital stock, common
16
Surplus reserves
17
Surplus and undivided profits 10/
18
Less d e fic it 11/
19
Total lia b ilitie s 9/
Receipts:
20
Gross sales 12/
21
Gross receipts from operations 13/
Interest on Government obligations:
22
»»holly taxable .14/
23
Subject to declared value excess-profits
tax and surtax 15/
24
Subject to surtax only 16/
25
Wholly tax-exempt 17/
26
Other interest
27
Rents and royalties 18/
.Net capital gain 19/
28
29
Net gain, sales other than capital assets 20/
30
Dividends, domestic corporations 21/
31
Dividends, foreign corporations 22/
32
Other receipts
33
Total compiled■receipts 25/
Deductions:
34
Cost of goods sold 24/
35
Cost of operations 24/
.36
Compensation of officers
37
Rent paid on business property
38
Repairs 25/
39
Bad debts
40
Interest paid
41
Taxes paid 26/
42
Contributions or g ifts 27/
43
Depreciation
44
Depletion
45
amortization 28/
46
Net long-term capital loss 19/
47
Net loss, sales other than capital assets 20/
48
Other deductions
49
Total compiled deductions
50 Compiled net profit or net loss (33 less 49)
51 Net income or d e ficit X/ ¿ S O less (24 + 2$)_7
52 Net operating loss deduction 29/
53 Normal tax 30/
54 Surtax 31/
55 Declared value excess-profits tax
56 Excess profits tax 52/
57
Total tax
58 Compiled net profit less to ta l tax (50 less 57)
Dividends paid:
59
Cash and assets other than.own stock
60
Corporation's own stock
footnotes, see p. 18,

407,053

(Total assets classes and money figures in thousands of dollars)
Total assets classes 9/
50 under
100 under
250 under
500 under
1,000 under
100
250
500
1,000
5,000
213,086
60,386
61,525
28,751
18,424
18,832

Under 50

41,628,921
49,254,636
25,057,672
36,547,632
80,353,836
100,698,085
6,911,468
340,452,250

372,172
684,423
763,104
13,985
168,623
1,665,519
145,349
4,013,174

16,350,151
9,241,967
49,542,320
122,727,713
16,214,267
71,576,583
10,064,808
56,592,608
11,858,166
340,452,250

323,555
941,327
779,746
22,907
218,760
1,965,740
132,662
4,384,697

722,234
2,043,407
1,589,021
107,482
606,358
4;212,092
266,147
9,546,741

974,897
2,270,013
1,492,975
272,817
878,779
5,985,904
246,812
10,122,198

1,598,104
2,956,341
1,696,674
610,340
. 1,296,271
4,470,144
286,841
12,914,713

1,041,700

776j 531

1,343,535

1,111,139

424,946
767,490
319,-138
167,593
2,301,016
27,349
603,240
1,639,098
•4,013,174

373,847
918,576
297,270
157,196
1,807,298
35,227
781,631
762,878
4,384,697

743,081
2,034,507
827,811
426,518
3,303,479
108,341
1,880,111
1,120,642
9,546,741

719,315
1,859,966
1,569,527
472,992
2,982,490
164,754
2,130,397
888,380
10,122,198

148,274,895
28,442,327

7,770,961
1,935,228

6,819,640
1,132,558

12,701,808
1,841,369

37,860
460,491

120
164

52
196

62,481
275,543
2,522,629
2,045,256
150,010
165,174
2,170,669
179,316
1,350,532
186,137,183

^22
313
13,624
161,486
5,854.
14,945
4,585
238
102,406
10,009,945

110,978,236
14,759,175
3,364,464
2,019,936
1,560,432
702,799
2,554,368
4,920,640
57,584
3,664,181
502,789
112,527
935,805
219,460
25,193,155
169,545,552
16,591,631
16,253,606
321,706
2,895,600
782,521
62,769
3,322,793

5,000 under
10,000
2,812

10,000 under 50,000 under 100,OOO and
50,000
100,000
2,411
400
426

1

5,313,458
8,154,807
4,324,407
3,011,184
5,682,332
11,927,141
800,387
, 39,213,716

2,694,590
3,577,525
1,901,456
1,775,264
3,360,797
5,814,621
447,091
19,571,343

1,135,979

2,574,683

1,061,911

2,415,111

771,701
1,925,411
3,077,929
618,644
3,389,936
255,540
2,777,186
1,037,611
12,914,713

1,824,550
5,032,317
11,734,786
2,154,545
8,743,776
1,023,496
8,622,309
- 2,496,746
39,213,716

758,817
• 2,275,058
6,143,463
963,143
4,053,187
641,664
4,475,621
801,520
19,571,343

1,231,277
6,288)059
15,703,430
3,038,797
9,632,419
1,790,970
10)346)000
1,260,197
49)185)866

11,136,325
1,559,146

11,596,53.7
1,521,259

26,818,378
3,318,494

10,611,786
1)452,382

23,532,756
4)378)248

8,782,034
2 ) 245)571

28,504,671
9 ) 058)070

20
21

194
1,162

206
2,789

497
5,501

2,574
27,787

1,883
17,684

5,011
48)640

2,795
24)941

24,527
33l)626

22
23

29
367
14,694
143,492
3,640
10,454
3,704
64
82,187
8,211,078

146
1,494
42,410
285,647
7,856
19,820
15,538
541
152,899
15,070,884

401
4,297
66,102
117,250
7,586
19,932
20,947
950
116,-708
13,052,640

896
10,306
104,696
114,637.
9,689
19,018
35,123
746
119,230
13,538,135

5,237
38,750
331,063
249,125
29,030
38,102
179,249
7,487
261,627
31,306,903

3,074
17,865
145,322
110,932
12,874
8^805
103,366
11,896
107,509
12,605,379

8,672
39)822
314,724
211)572
28^499
20^580
323)866
- 27)043
192,178
29,131,611

39,922
139^915
1,333^356
533^773
36^877
5*254
1,274,670

24
25
26
27
28
29
30
31
32
33

6,008,751
1,091,352
634,277
281,952
48,006
44,957
53,580
160,639
1,967
129,829
4,131
143
18,215
24,145
1,464,414
9,966,359
45,587
43,253
28,504
30,331
10,373
2,454
5,381

5,362,296
671,124
384,989
123,494
38,535
36,145
57,702
155,677
1,748
109,756
4,651
133
11,554
8,111
1,067,181
8,010,896
200,182
199,785
20,222
39,415
12,791
2,607
17,004

9,969,369
1,100,795
583,860
171,051
73,548
63,419
121,159
259,502
3,736
204,168
11,224
782
29,164
20,576
1,897,579
14,509,930
560,955
559,315
35,216
108,332
31,277
5,649
70,141

8,637,551
871,138
410,295
120,426
70,358
53,066
114,627
247,035
3,544
185,173
13,991
1,351
28,511
14,446
1,590,310
12,361,802
690,838
686,140
26,881
156,892
35,446
6,108
110,753

8,871,222
845,268
345,803
110,594
84,192
50,568
124,124
279,155
4,387
202,336
22,089
2,231
42,605
20,759
1,641,234
12,646,564
891,571
880,368
29,843
178,446
44,776
7,258
170,690

20,120,350
1,740,764
513,358
236,398
245,947
128,128
307,392
745,830
11,803
509,441
65,326
11,667
152,225
43,360
3,820,019
28,652,009
2,654,894
2,610)907
57,112
506,589
125,301
15,496
566,727

7,667,323
643,724
131,003
88,627
125,841
51,036
134,222
333,055
5,755
231,699
44,425
8,866
59,431
15,142
- 1,696,620
11,236,770
. 1)368,609
1,347,669
25,312
244,232
61,399
6,283
339,476

17,254,783
1,984,422
*196)025
172,615
321,002
110,297
318,725
758,242
10,203
598,552
104,735
20,156
188,772
38,622
3,983,629
26,060,780
3,070,831
3,022,336
33,947
554,853
145,420
11,102
728,137

108)223
127)647
27,157
231,109
478)313
4)430
324)786
34)685
17)209
64,678
13,586
1,655)982
10,106,811
1)576)543
l)550)048
8)089
280,517
75,496
2)l25
338)431

340^652
20^713
4,376)189
35)993)631
5^533^622
5 ) 353)785
58)580
815)992
240,243
3)707
976)053

51
52
53
54
55
56

7,063,683
9,527,948

48,540
38/4,953

71,817
128,365

215,399
345,556

289,199
401,639

401,150
490,421

1,214,113
1)440,781

651,389
717,219

1,439,513
1,631,519

696,569
879)974

2,035,994
3)497)628

57
58

6,556,439
165,722

59,255
2,130

58,349
3,222

154,812
9,915

189,015
14,944

250,684
17,665

837,590
33,532

456,738
10,195

1,252,365
15,687

689,152
13,751

2,608,480
44,682

59
60

6,615,087
7,684,969
4,249,105
4)620)342
10)343,403
14,575)841
1,097,119
49,185,866

3,431,968 19,582,858
3)328)051
17 ) 413)772
2,168,928
6 ) 092)756
2)360)978 23 ) 752)335
6,329,913
51 ) 468)599
9,444)128 42)636)956
814)904
2)674)l56
27,878)869 163)620)932
1,084,946

2

3
4
5
6

7
8

9

3,804,616

10

410,831
1,983,604
5,344)633
23^096^303
8)739)659 74^314^700
6^235^984
l)979)055
5)412)200 29^950^781
1^024^011
4^993^457
4 ) 512)597
20^463^516
1^222^028
629)064
27,878)869 163 ) 620)932

11
12
13
14
15
16
17
18
19

4,081
22)413

156)639
117^345
8^107
8*263
209)620

28)948
72)597
11,683)353
6,020,439
943^902
54)665

101)402
143)191

41,527)253
21,066,153
4^866^686
”110)188
606)555
425)577

138)026
1,091)728
l)525)l91
10^010
1 , 168)442
”197)532
49)988

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
SO

1/

■v
"Not Income" or "Dofidt" it s the amount reported f o r declared -value excess-profits tax computation
adjuatod by excluding net operating loss deduction (Items 30 and 26, respectively, page 1, Form
1 1 20 ) .

i n t e r e s t a t a fix e d m a tu rity date not exceeding one year from th e date o f is s u e . C a p ita l gains and
lo s s e s a re c l a s s i f i e d as " sh o rt-term " i f the a s s e t s were held 18 months o r l e s s , "lo n g -term " i f the
a s s e t s were held f o r more th an 18 months. I n computing n e t income fo r the c u rre n t y e a r, a n e t s h o r t term o a p it a l g ain and a n e t long-term o a p it a l g ain or lo s s a re included b u t a n e t sh o rt-term o a p ita l
lo s s i s exoluded. However, a n e t s h o rt-term o a p ita l lo s s ( in an amount n o t i n exoess o f the n e t income
f o r the y e a r in whioh the lo s s was s u sta in e d ) may be c a rr ie d forward and applied a g a in s t any s h o rt­
term o a p it a l g ain o f the succeeding ta x a b le y ear n o t alread y o f f s e t by o a p ita l lo s s e s o f suoh suc­
ceeding y e a r . This o a rry -o v e r i s r e s t r io t e d to one y e a r.

2/ The industrial classification is based on the business activity reported on the return. When multi­
ple businesses are reported on a return, the classification is determined by the business activity
mhioh accounts for the largest percentage o f to tal reoeipta. Therefore, the industrial groups do
not re flect pure industry classificatio ns.
6 v
3/

The industrial group "Investment trusts and investment companies" eonsists of corporations whioh
derived «) percent or more o f receipts from investments and whioh a t no time during the taxable
year had investments in corporations in whioh they owned 50 percent or more of the voting stock*

4/ The industrial group "Other investment companies, including holding companies" consists of (1) cor­
porations which derived 90 peroent or more of receipts from investments and whioh at some time
during the taxable year had investments in corporations in whioh they owned 50 peroent or more of
the voting stook and (2) corporations whioh derived less than 90 peroent but more than SO peroent
o f receipts from investments.
6/

Amount shown as "Investments, Government obligations" consists of obligations o f the United States
or agenoy or instrumentality thereof as well as obligations o f States, Territories, and p o litical
subdivisions thereof, the D ietriot of Columbia, and United States possessions. <

8/ Amount shown as "Capital assets" oonsists of (1) depreciable tangible assets suoh as buildings,
ftxed meohanioal equipment, manufacturing fa o ilitie s , transportation f a c ilit ie s , and foraiturc and
« xtu res, (2) depletable tangible assets - natural resouroes, (3) intangible assets suoh as patents,
franchises, formulas, copyrights, leaseholds, goodwill, and trade-marks,' and (4) land. (Amount in
table 1 exoludes land.)
9/

Assets and lia b ilitie s are tabulated as o f December 31, 1941, or olose o f fiso a l year nearest thereto.
Total assets olasses are based on the net amount of to ta l assets after reserves for depreciation,
depletion, amortisation, and bad debts. Adjustments are made in tabulating the data, as follows«
(1) Reserves, when shown under lia b ilitie s , are used to reduoe corresponding asset aooounts, and
Total assets and Total lia b ilitie s " are deoreased by the amount o f suoh reserves, and (2) a
d e ficit in surplus, shown under assets, is transferred to lia b ilitie s , and "Tbtal assets" and
"Total lia b ilitie s " are deoreased by the amount of the d e flo it.

10/ Amount shown as "Surplus and undivided profits" oonsists of paid-in or oapital surplus and earned
surplus and undivided p ro fits. See note 11.
H /

12

/

"Net gain or loss, sales other than capital assets" is the net «mount of gain or loss arising from the sale
or exchange o f property used in trade or business, of a oharaoter whioh is subjeot to (he allowanoe for
depreciation•

21/

"DJj^ dend*» domestio corporations" is the amount reported in column 2, sohedule E, page 3, Form 1120.
This amount is subjeot to inoomo taxation under ohapter 1 of the Internal Revenue Code and is the
amount used for computation of the dividends received cred it. There is exoluded from this amount
dividends from corporations organised under ihe China Trade Act, 1922, and corporations entitled to
the benefits of section 251 of the Internal Revenue Code (corporations receiving a large portion of
their gross inoome from sources within a possession of the United States) suoh dividends being in­
oluded in "Other reoeipts."

22/

"Dividends, foreign corporations" is the «mount reported in oolumn 3, sohedule E, page 3, Form 1120, and
is not used for the computation of dividends reoeived credit.

"Number o f returns with balance sheets" exoludes 40,160 returns o f inaotdve corporations and 61,863
returns of aotive corporations for whioh balance sheet data are lacking.

6/ Amount shown as "Cash" inoludes bank deposits.
2/

20/

Amount shown as "Defloit" oonsists o f negative amounts o f earned surplus and undivided p rofits.
"Gross sales" oonsists of amounts reoeived for goods, less returns and allowanoes, in transactions
where inventories are an income-determining faotor. For "Cost o f goods sold," see "Deductions."

13 /

"Gross reoeipts from operations" oonsists o f amounts reoeived from transactions in whioh inventories
are not an inoome-determining faotor. For "Cost o f operations," see "Deductions."

1*/

"Interest reoeived on Government obligations, wholly taxable* oonsists o f interest on Treasury notes
of the National Defense Series and obligations Issued on or a fter Maroh 1, 1941, by the United
States or any agency or instrumentality thereof, reported as item 8(b ), page 1, Form 1120«

15/

"Interest reoeived on Government obligations, subject to deolared value exoess-proflts tax and surtax"
oonsists of interest on United States savings bonds and Treasury bonds owned in principal amount o f
over 35,000 issued prior to Maroh 1, 1941, reported as item 8(a), page 1, Form 1120.

23/ "Total oompiled receipts" exoludes nontaxable Inoome other than tax-exempt interest reoeived on oertain
Government obligations.
24/ items of deductions for whioh spoolfio headings are provided on the return, when reported in "Cost of goods
I v i ! r , as
C° 8t
° f operation8* ar® not transferred to their respective headings but remain in the amount
tabulated
eost*
25/ ¿uuourn; snown as xwpaxrs is wie oos-c or incidental repairs« including labor and supplies, which do not add
materially to the value o f the property or appreciably prolong i t s life *
26/ The item "Taxes paid" exoludes ( l ) Federal income tax and Federal exoess profits taxes, (2) estate, in8“o0888lon» and g ift taxos, (3) inoome taxes paid to a foreign oountry or possession
Stata8, i f any P°r tion is claimed as a tax cred it, (4) taxes assessed against looal benefits,
(o; Federal taxes paid on tax-free covenant bonds, and (6) taxes reported in "Cost of goods sold" and
"Cost of operations."
27/ The deduction claimed for "Contributions or g ifts" is limited to 6 peroent of net inoome as computed with­
out the benefit of this deduction.
28/ Amount shown as "Amortisation" is the deduction provided by the Second Revenue Aot of 1940 which allows
for the amortisation o f the oost o f emergenoy fa o ilitie s necessary for national defense.
29/

he "Net operating loss deduction" is the net operating loss oarry-over reduoed by certain adjustments,
in general, the net operating loss oarry-over is the sum o f the net operating losses, i f any, for the
two preceding taxable years. I f there is net inoome in the f i r s t preceding taxable year, the net opera­
ting loss for the seoond preceding taxable year is reduoed to the extent suoh loss has been absorbed
by suoh net income.

30/ "Normal tax" inoludes 3505,621,885 income and inoome defense taxes reported on returns for a fis c a l year
ending in.period July through November 1941 and on returns for a part year beginning in 1940 and ending
in 1941, the greater part of the accounting period falling in 1941j and 32,641,946,342 normal tax re­
ported on returns for the calendar year 1941, on returns with a fiscal year ending in period January
through June 1942, on returns for a part year beginning and ending in 1941, and for a part year beginning
in 1941 and ending in 1942, the greater part of the accounting period falling in 1941.

16/ "Interest reoeived on Government obligations, subject to surtax only" oonsists o f in terest on obli­
gations of instrumentalities of the United States (other than obligations issued under the Federal
Farm loan Aot, or under such Act as amended) issued prior to Maroh 1, 1941, reported as item 31
page 1, Form 1120.
*

31/ The surtax levied under section 15 of the Internal Revenue Code, as amended by the Revenue Act o f 1941
applies to taxable years beginning after December 31, 1940. The surtax shown inoludes a small amount
reported on returns with no net Inc one, where receipts for the taxable year include interest on obliga­
tions of oertain instrumentalities of the United States, desoribed in note 16, suoh interest being added
to the net inoome for deolared value excess-profits tax computation in the prooess of computing the sur1 tax net inoome.

Interest reoeived on Government obligations, wholly tax-exempt" oonsists of in terest on obligations
o f States, Territories, or politioal subdivisions thereof, the D istrict o f Columbia, and United
States possessions} obligations of the United States issued on or before September 1, 1917 j Treasupr notes issued prior to December 1, 1940, Treasury b i l ls , and Treasury certificate» o f indebt­
edness issued prior -to Maroh 1, 1941} obligations issued prior to Maroh 1, 1941, under the Federal
Farm loan Aot, or under suoh Aot as amended; and United States savings bonds ««< Treasury bonds
owned in principal amount of 35,000 or less issued prior to Maroh 1, 1941.

32/ The exoess p rofits tax shown is that imposed by section 710 o f the Internal Revenue Code as amended and
should not be confused with the declared value excess-profits tax. For returns with taxable year be­
ginning in 1940, the amount tabulated is the exoess profits tax lia b ility reported on corporation excess
profits tax returns. Form 1121. For returns with taxable year beginning in 1941, the amount tabulated is
the exoess profits tax deduction (item 35, page 1, Form 1120) allowed in the computation of normal-tax
net income*

12/

18/ Amount shown as "Bents and royalties" oonsists of gross amounts reoeived. The amounts o f depreolation, repairs. Interest, taxes, and other expenses, whioh are deduotible from the gross amount
reoeived for rents, and the amount of depletion, whioh is deduotible from the gross amount of
royalties reoeived, are included in the proper deduction items.
19/

Se\ j* ? i * * *
or loss is the net amount of gain or loas arising from the sale or exchange o f
capital assets. The term "Capital assets" means property held by the taxpayer (whether or not
oonneoted with trade or business) but exoludes (1) stook in trade or other property whioh would
properly be inoluded in inventory i f on hand a t the olose of the taxable year, (2) property held
primarily for sale to oustomers in the ordinary oourse of trade or business, (5) property used in
trade or business, of a character whioh is subject to the allowanoe for depreciation, and (4)
Government obligations issued on or after Maroh 1, 1941, on a discount basis and payable without

„
<'

33/

Amount shown as "Compensation of offioers" excludes compensation of officers o f life insurance oompanies
whioh f i l e Fom 1120L* Data not available*

«/

"Other deduotions" shown for the major group "Insurance oarrlers, agents, e to .," Inoludes speoial deduc­
tions of li f e insurance oompanies relating to reserve for dividends and reserve funds required by law.

55/ See notes 55 and 54.
56/ Less than $500.
37/ Compiled net loss or d eficit*
38/ Compiled net loss after to ta l tax payment.

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 •rdinarjr 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.

j i l p i

■

■

■

lililiii!

Bill.
-mi
M

m

m

, ;M
\

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' -'

-

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 exoressly 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

March 2, 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 117 (a) (l) of the

Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amqunt of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bill^shal^ 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

TREASURY DEPARTMENT
.Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, February 25 , 1944

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 fjixed-price bidding as hereinafter pro­
vided,
mature

The bills of this series will be dated

__when

June X. 1944

March 2, 1944

, and will

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, February 28, 1944
4

'

■

m

*r ^

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

a

L,

TREASURY DEPARTMENT
Washington

POR RELEASE, ROHLING- NEWSPAPERS,
Friday, February 2 5 , 1944.

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 Larch 2, 1944, and will mature
June 1, 1944, 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
fl,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., Fonday, February 28, 1944,
Tenders will not be
received at the Treasury Department, f/ashington. Each tender
must be for an even multiple of #1,000, and the-price offered
must be expressed on the basis of 100, with not more than three
decimals, e. g,, 99*925*
Fractions may not be used,
It is
urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal
Reserve Banks or Branches on application therefor.
Tenders will be received without 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 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 r e ­
jection 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
Farch 2, 1944*
40-86

(Over)

-

2

-

• The income derived from Treasury Tells, whether interest
or gain from the sale or other disposition of t h e bills, shall
not have any exemption,, as s.uch, and loss from the .sale or
.• ■'■other disposition of Treasury bills 'shall not' have any.^special
treatment, as* s.uch, under Federal tax. Acts now or hereafter
• e^actec..
Trie bills shall be subject to estate, inheritance.
gilt, or other excise taxes, whether Federal or State, burl shall
'
■'■• b© exempt 'iSrom all taxation, now or hereafter imposed cr the
■principal or interest thereof by any State, or any of the poeses■
..'sions of the.United .States,, or by any local taxing authority.
, - tor purposes of taxation the amount of discount at .which Trcasi rv
bills are originally sold by the United States shall be conoid^*
ered to be interest. Under Sections 42 and 117 (a) (1) of the
Internal Bevenue Code, as amended by Section 115 of the Revenue
Act of '1941, ¿he. amount of discount 'at which bills Issued here­
under are sold shall not be considered to accrue until such bills
shall be sold, redeemed or otherwise disposed of, andArvaeh bills
are excluded from consideration as capital assets.
Accordingly,
the ownei 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 actu­
ally received either* upon sale or redemption at. maturity during
the taxable year for which, the return ip mad ., as ordinary gain
or loss.
Treasury. Department Circular Ho. 418,: as amended«, .and
this notice, prescribe the terms .of the Treasury bills and
govern the conditions o f •one?c issue. 'Copies of the circular
may oe ootained from My Federal Reserve Bank or Branch.

-

Tax

2

-

Old Rate

New Rate

E ffe ctiv e Date

E l e c t r i c lig h t bulbs and
tubes

5% of manufacturers* 20% of manufac­
p rice
tu rers* p rice

W

Long distance telephone
c a l l s fo r which the
charge i s more than
24 cents

20% of charge

25% of charge

Applies to amounts
paid f o r services
fu m ish ed o n or
a f te r lËBron 1,1%

Domestic telegrap h , cab le, 15% of charge
o r radio dispatches or
messages

25% of charge

Leased w ires, e t c .

25% of charge

Wire and equipment serv ice

15% of charge

5% of charge

Local telephone serv ice

10% of charge

B illia rd and pool tab les

#10 per year per

tab le
Bowling a lle y s

#10 per year per

a lle y

1 , 1944

n

m

8* of charge

( Applies to amounts
( paid pursuant to
( b i l l s rendered on
( or a f te r
1,
( 1944, fo r service!
( furnished on.or
( a f te r
if

- -a ~ .
15% of charge

r

-

.

.

(

1944, fo r which ik
previous b i l l was
( rendered.
#20 per year per Ju ly 1 , 1944
tab le

#20 per year per

*

a lle y

The in creases in the ra te s of these taxes are sp e cia l wartime in creases which
w ill term inate approximately s i x months a f te r the end of the war, a t which time
the taxes w ill re v e rt to the old r a t e s .
The new r e ta ile r s * ta x on luggage, e t c . , becomes e ffe c tiv e March 1 , 1944*

The

ta x i s a t the ra te of 20 per cent of the r e t a i l p rice and applies not only to trav­
elin g bags, s u itc a s e s , trunks, e t e . , bat to t o i l e t c a se s , purses, handbags, pocketbooks, w a lle ts, and other re la te d a r t i c l e s .

The new ta x supplants the present 10

per cent manufacturers * excise ta x on luggage and, lik e the r a te increases in the
other e x c is e s , w ill continue in e f f e c t u n til approximately s i x months a f te r the end
o f the war, a t which time the manufacturers* excise ta x on luggage w ill be revived»
A ll of the changes made in the various ta x e s , Mr. Graves s ta te d , w ill be made
the subject of regulation s soon to be issu ed .
- oOo -

TREASURY DEPARTMENT
Bureau of In te rn a l Revenue
Washington, D. C«

^

„

FOR IMMEDIATE RELEASE.
Press Rel e ase He*.

'I/'11 ./

f

' '

~)u>. //a-97

Acting Commissioner o f In tern al Revenue Harold N, Graves today ca lle d

a tte n tio n to in creases in the ra te s o f a number of r e t a i l e r s * , manufacturers1,
and miscellaneous Federal excise taxes made by the w m j u A 0im m *e#^e venue
fiAet^o£®9ii9P«

A ttention was also c a lle d to the new r e ta ile r s * excise t a x on

luggage, handbags, w a lle ts , e tc « , imposed by th a t Act«
The r a te in cre a se s, togeth er with the dates they become e f f e c tiv e , are
shown in the following tab les
Tax
Admissions

Old Rate

New Rate

1 cent fo r each 10

1 cent f o r each 5

cents or fra c tio n
th ereo f

cents o r major
f ra c tio n th ereo f

E ffe ctiv e Date
1 , 19W

«

Use o r lease of
boxes o r seats

11$ of eharge

20$ of charge

Sales o f tic k e ts
outside box o ffic e

11$ of eharge

20$ of charge

Cabaret charges

5$ of charge

30$ of charge

1»

Club dues

11$ of charge

2Q$ of charge

«

I n itia tio n fees

11$ of charge

20$ of charge

If

Jewelry (except watches
r e ta ilin g f o r not more
than $65 and alarm
clocks r e ta ilin g fo r
not more than
the
r a te on which a r t i c l e s
remains a t 10$)

10$ of r e t a i l p rice

20$ of r e t a i l p rice

*

Furs

10$ of r e t a i l p rice

20$ of r e t a i l price

T o ile t preparations

10$ o f r e t a i l price

20$ of r e t a i l price

Passenger tran sp o rtation

10$ o f charge

15$ of charge

Seats and berths

10$ of charge

15$ of charge

II

TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington, D. C.
Press Service
No. 40-87

FOR IMMEDIATE RELEASE,
Friday, February 25, 1944

Acting Commissioner of Internal Revenue Harold N. Graves today called
attention to increases in the rates of a number of retailers’, manufac­
turers1, and miscellaneous Federal excise taxes made by. the new revenue
act* Attention was also called to the new retailers’ excise tax on
luggage, handbags, wallets, etc., imposed by that Act.
The rate increases, together with the dates they become effective,
are shown in the following tablet
Tax

Old Rate

New Rate

Effective Date

Admissions

1 cent for each 10 1 cent for each 5 April 1, 1944
cents or fraction
cents or manor
fraction
thereof
thereof

Use or lease of
boxes or seats

11$ of charge

20$ of charge

Sales of tickets
outside box office

11$ of charge

20$ of charge

Cabaret charges

5$ of charge

30$ of charge

Club dues

11$ of charge

20$ of charge

Initiation fees

11$ of charge

$ of charge

Jewelry (except watches
retailing for not more
than $65 and alarm
clocks retailing for
not more than $5, the
rate on which articles
remains at 10$)

10$ of retail price 20$ of retail price

Furs

10$ of

retail price 20$ of retail price

Toilet preparations

10$ of

retail price 20$ of retail price

Passenger transportation 10$ of

charge

15$ of charge

Seats and berths

charge

15$ of charge

10$ of

u

-

Tax

2

-

Old Rate

New Rate

Effective Date

Electric light bulbs and
tubes

'%■ of manufac­

Long distance telephone
calls for which the
charge is more than
24 cents

20$ of charge . 25$ of charge

Domestic telegraph, cable,
or radio dispatches or
messages

15$ of chbrge

25$ of charge

Leased wires, etc.

15$ of charge

;25$.. of charge

Wire and equipment service

5$ of charge

Local telephone service

10$ of charge

Billiard and pool tables

$10 per year
per table

( Applies to amoimts
( paid pursuant- to
( bills rendered:on
( or after May 1,
'
( 1944^ for services
8$ of charge' .( furnished on or
(’"after -March 1,
15$ of charge ( 1944y for which no
( previous bill was
( -rendered?
$20 per year
July 1, 1944
per table

Bowling alleys

$10 per year
per alley

$20 per year
per alley

turers* price

20$ of manufac­- April 1, 1944
turers* price
Applies to amounts
paid for services
furnished on or
after April 1, 19
u

it

ii

The increases in the rates of these taxes are special wartime increases
which will terminate approximately six months after the end of the war, at which
time the taxes will revert to the old rates*
The new retailers' tax on luggage, etc a, becomes effective March 1, 1944..
The tax is at the rate of 20 per cent of the retail price and applies not only to
traveling bags, suitcases^ trunks, etci, but to toilet cases, purses, handbags,
pocketbooks, wallets^ and other related articlesa The new tax supplants the
present 10 per cent manufacturers* excise tax on luggage and, like the rate
increases in the other excises, will continue in effect until approximately six
months after the end 6f the war, at which time the manufacturers' excise tax on
luggage will be revived.
All. of the changes made in the various taxes, Mr. Graves stated, will be
made the subject of regulations soon to be issued.
t

oOo «-»

-

22

-

and has already received formal approval from the c o lle cto r*
99*

Q.

Do I have to make my payment in cash?

A*

You may pay in cash or by money order or check, as you p refer*
Money orders

checks should be made payable to th e "C ollector of

In tern al Revenue •"
100*

Q,* What *s the penalty i f I f i l e a f te r the deadline?
A*

The law requires th e c o lle c to r to adt^ as a penalty ,J t o your taa^
an amount equal to 5 percent o f your ta x i f the delay i s le s s than
30 days, plus an additional 5 percent f o r every subsequent 30-day
delay*

The maximum penalty i s 25 percent o f your ta x *

0

S /i

i p
21

-

A*

-

Yes, but t h i s year the d eclaratio n has been postponed u n til
April 15*

However, the 1944 d eclaratio n must not be confused wilfa

the 1945 retu rn which must s t i l l be f ile d on or before March 15*
96#

Q.

Suppose I find I made a mistake in my retu rn but have already filed
it .

A*

What should I do?

Contact the o f f ic e of the c o ll e c to r where you f ile d your return#
I f your e rro r was simply one of a rith m e tic, your mistake probably
w ill be co rrected without any actio n on your p a r t.

I f you made a

mistake in your income or deduction e n tr ie s , i t may be necessary
f o r you to f i l e an amended return#
97#

Q,.

I understand th a t a new revenue a c t was enacted recently#

Does

th a t change the retu rn forms fo r 1945?

r

A# With one minor exception th at applies to only a few taxp ayers, the

fa-

new law does not change the 1945 retu rn forms#

The one exception

i s th a t Congress repealed a s p e cia l provision re la tin g to th e forgiveness of taxpayers who had more than #20,000Tsurtax net income
A,

in e ith e r 1942 o r 1945#
schedules

A 1

This sp e cia l provision was contained in

and L-2 for, long ^orm 1040, and these two schedules

1

should now be ignored.

Otherwise, a l l other income t a x changes made

by the new revenue a c t apply only to future ta x forms and do not
a l t e r th e 1943 forms which we are now f i l l i n g ou t.
98.

Q.

Suppose I am c r i t i c a l l y i l l on March 1 5 .

Can I get an extension of

time to f i l e ?
A.

CEh""^cr jp-unusual eireumofrences,J^>ur lo c a l c o lls e to r o f in tern al
revenue has au th ority to grant exten sion s.
policy under -th e 1p ay*

However, a s a-m attor of

■you^go„sy st em, extensions w ill not be given

except under oxtweesdiLaiagy circum stances, and no taxpayer should
count on an extension unless he has made fbrmal app lication fo r it

- 20 90*

Q.

The c o lle c to r mailed me a s l i p , numbered Form 1125«

What do I do

with th a t?
A.

Form 1125 was intended to a s s i s t you in f i l l i n g in your 1943 return.
The s lip shows, according to th e record s in th e c o ll e c to r 's office,
the amount of your 1942 ta x and a lso how much of the 1942 ta x you
p aid .

You w ill need both these figu res in f i l l i n g in your return.

When you have finished th e retu rn , a tta ch Form 1125 to the return
and f i l e them together«
91«

Q.

What do I do with th e l i t t l e r e c e i p t , numbered Form W-2, whieh my
en$>loyer gave me?

A«

Form W-2 i s a personal r e c e ip t from your employer t o you, showing
how much wages he paid you and how much income and v ic to ry ta x he
deducted from your wages.

You w ill need these fig u res in f i l l i n g

in your re tu rn , but you should keep the re ce ip t«

Your employer has

already given a duplicate copy o f i t to th e Government.
92 • Q.
A.

How do I pay the ta x shown on my retu rn ?
As shown on the form, a portion o f the unforgiven 1942 ta x may be
postponed fo r a y e a r, but the remainder must a l l be paid on or
before March 15 and accompany your retu rn .

^ 9 3.

Q.

C an't I pay th is ta x in in stallm ents?

A.

No.

Under th e pay-as-you-go system , you are expeeted to have already
ta x
paid a l l or a su b stan tial p a rt o f your 1 9 4 3 /and th e re fo re no provision
has been made fo r paying the remainder in In stallm en ts.

94«

95.

Q.

Is there anything e lse th a t I have to f i l e on March 15?

A.

No.

q.

Don't some people have to estim ate th e ir 1944 t a x and f i l e a
d eclaratio n ?

- 19
86 • Q*

A ren't th ere some sp e cia l ru le s about figu rin g the income and ta x
on the sale o f s e c u r itie s , and sim ila r tra n sa ctio n s?

A.

Yes«

I f you have sold o r exchanged s e c u r itie s or other property

nfcioh was held fa r investment or p r o f i t , you must f i l l in a separate
form, c a lle d Schedule B, and f i l e i t along with your long ^orm 1040,
On th is schedule, you w ill c la s s if y your gains and lo sses according
to whether (a) the property was held f o r 6 months or le s s (short
term ), o r (b) i t was held fo r more than 6 months (long term ), or
(c ) i t was some type o f property te c h n ic a lly c la s s if ie d as "other
than ca p ita l a s s e ts « "—~

%
l$f
87.

Q.

Gan net lo sses from th e s a le or exchange o f ca p ita l a s se ts be offset
against other types of income?

A*

Yes, up to $1,000«

%

can be carried over and applied as an o ffs e t against net c apitd

I f the net lo s s exceeds th is lim it, th e excess

gains in the next fiv e years
88.

Q,.

% u **H

I'm a farmer and ju st f ile d a d eclaratio n of estim ated ta x la s t
December 15«

A.

¿Ue*«,—

Do I have to f i l e again so soon?

Yes, the law grants farmers a sp ecial p riv ile g e of delaying th eir
estimated ta x declaration s u n til as la t e as December 15 each year,
but s t i l l req u ires the f i l i n g of a retu rn by March 15.

89.

Q.

Do farmers use the same forms as other people?

A.

Yes.

However, an additional form, Form 1040F, headed "Schedule of

Farm income and Expenses," must also be f ile d by farmers who report 1
th e ir income on the cash basis«

Farmers using the "accru a l" method 1

may use Form 1040F i f they d e s ir e .

- 18 1«

T otal up a l l your medical and dental expenses, a ctu a lly paid
during th e year*

2.
3«

Subtract any reimbursement received from insurance o r otherwise,!
Subtract an amount equal t o 5 percent o f your net income before
the m edical-dental deduction*

4*

You may deduct th e remainder, bufrinojf more than $2,500 for a
married couple or a head of fam ily, o r not more than $1,250
in the ease o f any other taxpayer*

What kind of expenses can I count as "medical and d en ta l"?
A.

Any actual payments f o r th e diagn osis, cu re , m itig a tio n , treatment
or prevention of d isease; a lso any payments fo r h o sp ita liz a tio n ,
accident o r health insurance; also any payments fo r membership in
an asso ciatio n providing cooperative or so -c a lle d fre e -ch o ice medical |
serv ice*

84*

Q*

I s th is deduction lim ited t o the c o s t of d o cto r, d e n tis t and hospital]
b ills ?

A*

No*

Any a ctu a lly necessary expense, re la te d to medical and dental

co sts can a ls o be included*

For in stan ce, th e co st of an ambulance,

a sp ecial nurse, sp ecial equipment, e tc *
« u n tfm L

... .....

p u t»

a

+.ha G nm nri g n i nxuxn

In unusual eirctiwetannes
a l s o frw ™ in c luasd.
V ly

r i ^ t ^ ^ r^ q n i^ ^ p roofy^ egt-these actu gl l y “iiye!i^'fW pr'"didU etions •
85*

Q.

In 1943, 1 paid some doctor b i l l s which I ran up in 1942*

Gan I

deduct these payments?
A*

Yes*
items*

Note th a t the deduction is based on when you paid f o r these

i
- 17 77.

Q.

How do I fig u re my lo s s ?

A.

By estim ating th e value o f the property ju st before and a f te r the
lo s s , and by sub tractin g any salvage value o r reimbursement from
insurance or otherw ise.

78.

Q.

Do "market values" apply to heirlooms and things with a sentimental
value?

A.

Y es.

Sentimental values cannot be measured.

T herefore, only market

values can be considered.
79.

Q.

Are some kinds o f lo ss non-deductible?

A.

Yes, Losses due to w illfu l a c ts o r negligence cannot be deducted.
For example, i f you wreck your c a r while in to x ica te d , you cannot
deduct the l o s s .

8 0 . Q*
A.

Ordinary mistakes of judgment in driving a car

do not disq u alify lo sses as deductions, however.
Can a l l lo sses from bad debts be deducted?
No.

The lo ss must r e s u lt from a loan which th e borrower was le g a lly

obligated to repay.

Then the lo ss i s deductible only f o r the year in which i t

a ctu a lly became worthless and a f te r reasonable step s had been taken to c o lle c t.
I f the lo ss resu lted from a business tra n sa ctio n , i t can be deducted in f u l l .
f& Ji1

I f the lo ss re su lte d from a non-business tra n sa ctio n , then i t can only be etffsst
QQiiHBt "short term ca p ita l peAnn."

8 1 . Q,* What about the $50 I loaned my b rother-in -law and can’ t c o lle c t?
A.

O rdinarily, loans to r e la tiv e s are regarded as g i f t s and lo sses

re su ltin g from them cannoty—accordinglys- be taken.

However, i f you can prove tlicfc

a loan to a r e la tiv e was a bona fid e d eb t, and i f you make a r e a l e f f o r t to
c o lle c t and f a i l , then you can get a deduction.
62« <4. uan x aeaucx a ix my meuictu. ana aeiiuax expenses;
A.

No.

To find out how much you can deduct, you must follow these step«

t
16 73*

q.

Can I deduct the in te re st I pay on my home mortgage?

A*

YeS) but be sure you separate the in te r e s t from oth er items
included in your payments*

Your payments mqr include p rin cip a l,

insurance, ta x e s , e tc *
74#

q*

What ta x e s are deductible?

A.

The l i s t includes:

S ta te income ta x e s , most s ta te and lo c a l sales

ta x e s , most s ta te gasoline ta x e s , s ta te and lo c a l r e a l e s ta te taxes
(not including sp e cia l ta x e s fo r paying, sewers and other improve­
ments which increase th e value o f your p ro p erty ), automobile license
fees (not including c o s t of t i t l e c e r t i f i c a t e s and inspection fees),
and the fed eral e x c is e ta x e s on the follow ing^theater and sports
admissions (but not cabarets and night c lu b s), club dues, telephone
and telegraph s e rv ic e s , safe deposit boxes, tra n sp o rta tio n ; and
the fed eralstam p Jjja e s $n documents, automobiles and boats* $£^0**

75 .

q*

What taxes are not deductible?

A.

The non-deductible l i s t in cludes:

r **j^*-^
^ J

fi
p

Federal employment ta x e s , federal

income o r excess p r o f its ta x e s , s ta te and lo c a l sp ecial assessment
taxes fo r paying and the l i k e , g i f t ta x e s , water r e n ts , and the
following fed eral e x cise ta x e s :

gasolin e, liq u o r, tobacco, night

club and ca b a re t, perfumes, jew elry, t o i l e t p rep aration s, auto­
mobiles, t i r e s , o i l , r e f r ig e r a to r s , ra d io , playing c a rd s, electrical
energy*
76.

q*

What kind of lo sse s can I deduct on account of c a su a ltie s or theft?

A*

You can deduct th e amount of a ctu a l lo sse s (not reimbursed by
insurance or otherwise) caused by stoxm, f i r e , floo d , shipwreck,
tornado and other natural d is a s te r s , and also c e rta in lo sses due to
th e ft and accident

- 15 governmental nature— (g ifts to some veterans organizations also are
deductible); (c) they are not to be used fo r p o litic a l or legislative
a c tiv itie s ; they are made in money or property (not personal services]
and (d) the anount of the contributions
does not exceed 15 percent of your net income before figuring the
deduction fo r contributions and medical expenses*
70«

Q* What are some samples of deductible contributions?
A*

G ifts to the Red Cross, community chests or war funds, churches,
Boy Scouts and Girl Seouts, D.A.R. , schools, non-profit research
foundations, Y.M.C.A., h osp itals, in fa n tile paralysis fund,
tuberculosis associations, American Legion, seamen's homes,
Salvation army, TJ.S.O*

71# Q,* Are a l l in terest payments deductible?
A* Most of them are, including in terest on home mortgages and bank loans«
Nondeductible in terest payments would include, fo r instance, interest
on a note tfiich was executed as a g i f t ; in terest paid fo r the benefit
of a relativ e when there was no legal -obligation to make the payment^,
(as

‘Wio case I f yfttl wTOJ k"8ü*üfigüai4; in terest pafrd on an

insurance policy loan when th e amount of the in terest i s simply
added to the loan; in terest on a debt Incurred to buy a single
premium l i f e insurance policy or endowment contract; in terest on
loans incurred to buy tax-exempt secu rities*
72.

Q.

Can I deduct the in terest I pay on instalment purchases of a car,
or furniture, etc*?

A* Yes, but be careful th at you deduct only fo r the in terest specified
in the contract and not fo r such things as insurance, carryingcharges, finance charges, and the lik e *

%

’
- 14 -

6 5.

q.

Who do you mean by "single* persons?

A.

Generally, any unmarried person, including widows, widowers, and
divorcees.

For tax purposes, moreover, married couples i&o do not

liv e together are regarded as single (couples only temporarily apart,
such as a sold ier and h is w ife, however, are regarded as "livin g
together" fo r tax purposes).
66*

6 7.

Q,. To get the #1,800 exemptlon,^a married couple^mgt) liv e together?
A«

That’ s rig h t.

q.

"Schedule 1" asks how many months I was single or married, e tc .

A.

On the long form, persons whose family status changed during the
year must pro-rate th e ir personal exemptions accordingly.

Why?

For

instance, i f you were single 6 months of the year and married six
months of the year, the personal exemptions of you and your wife or
husband are figured th is way:

You are each en titled to 6/18 (6 out

of 18 months) o f a #500 single person’ s exemption, and together are
en titled to 6/18 of a married couple's exemption of #1,800.
68 «

q.

Are the seme deductions allowed for v ictory ta x as are customary for
the regular income tax?

A«

No.

The only deductions allowed fo r victory ta x are those resulting

from a trade or business or in the care of income-producing property*
You w ill notice that on the long form, opposite most deductions, the
spaces in the Victory tax column have been f ille d with x 's ,

Accordingly, the deductions
discussed in the follow­
ing Questions ancrAnswers relate, in most cases, only to the income w
column on the return.

indicating nothing should be entered th ere.
69.

q.

What kinds of contributions can I deduct?

A*

These are of a very limited nature.

In general, deductions axe allow«

fo r contributions only i f (a) they are fo r a public, and not a
personal purpose; (b) they are given to an organized or incorporated
fund of a charitable, relig io u s, educational, scie n tific,/ b r

“

(

>

/ 6 ‘S 0 j /¿ 4 trt*~

A*

In Item 1 ^o f course, you must list your total condensation*
However, you will notice that in the same Item there is a line
which says, "Less Deductible expenses*

Attach Itemized statement*”

There is where you can put down a total figure for your business
expenses*

But if you do enter a figure, you should write down on

a piece of peper a list of what the money was spent for, and attach
the list to your return*
61*

Q*

What expenses can I deduct?

A*

Only those that are actually ordinary and necessary in your business*
If they are required in your job or business, you can deduct the
cost of travel (including meals, lodging, tips, eta), entertainment,
uniforms which do not take the place of ordinary clothing, technical
or professional publications, fees to employment agencies, automobile
operation, union dues and assessments, small tools, etc*

If you are

reimbursed these or similar costs, you should also include the amount
in your wages or income*
62*

Q,.

I spend quite a bit of money going and coming from work, on
commuters fares, bus tickets, etc*

A*

Sorry*

Isn’t that business expense?

No deduction is allowed for travel between your home and

place of employment*
63*

Q*

Do 1 have to list income from such things as gambling?

Where?

A*

Yes, that’s an example of "miscellaneous income" and should be
-KsCrv*-^.

listed in Item 9, Page 1^ ^However, in the ease of inocaae-from
gem&fe&Eg? the income from gambling may be offset by losses from
gambling, and only the net figure need be reported*

But, gambling

losses cannot be offset against any other kind of income*
64»

Q*

How much is my personal exemption for the regular income tax?

A*

$500 for single persons, $1,200 for married persons or others who
are heads of f emilies*

-

12

-

percentage r a te s according to udiether you are married o r s in g le ,
and how many dependents you support*

By using the r a t e th a t f i t s

your s ta tu s , you w ill find the c o r re c t amount o f your net V ictory
ta x with f u l l c re d it f o r your family s ta tu s and dependents*

If

your arithm etic is a l i t t l e r u s ty , you w ill find exanples a t the
bottom of the page showing you how t o do i t *
THE LONG FORM
57.

Q*

Can I choose between th e "cash* and the "a ccru a l" b asis of figuring
Inc on

57’ A *

“°' y°u should figure i
actually keep books on
approTal must be seci

the year*

However,

goods or serv ices received in lie u of money and i t also includes
any payments made availab le to you, even though not drawn upon*

For

In stan ce, you might g e t a dividend check in December and f a i l to
cash i t u n til January, but i t was "cash income" in December*

Also,

you might be a salesman whose pay was put in to a drawing account for
you to take whenever you pleased, and in th a t case your pay is "cast
income" i&enever you g e t th e r ig h t to draw out the money*
59 .

Q.

13hat i s th e "a ccru a l" b a sis?

A*

I t i s a method of accounting used almost exclu siv ely by business
concerns*

I t involves valuation of inventories at the beginning

and end of the y e a r, l i s t i n g o f income a t the time i t i s earned
or accrued without waiting to a c tu a lly get i t , and l i s t i n g of
expenses when incurred without waiting u n til paid for*
60.

Q*

I have a l o t of business eaj>enses fo r t r a v e l , e tc *
deduct them?

How do I

11
53«

Q.

-

I s th is c re d it based on the same d e fin itio n of dependency given
f o r "head o f f amily"?

A*

No.

To q u alify f o r th is c r e d it a dependent needs to meet only these

t e s t s : (1) he was e ith e r under 18 years of age (on Ju ly 1 , 1943) or
mentally or p h ysically incapable of s e lf-su p p o rt; and (2 ) received
more than one-half of h is support from the taxp ayer.
54*

Q.

I thought the c re d it fo r dependents was #350.

Why do you say #385?

A.

The c re d it a c tu a lly i s #350, but on the short form you are allowed
yW

■

i an e x tr a allowance t o compensate you for)

such items as "earned Income c re d it" which are not figured separately^
In other words, to make th is form easier^som e o f th e calculations
th a t a re o rd in arily done sep arately on the long Worn. 1040 are
combined on short jrom 1040A.
55.

Q.

My w ife and I are f ilin g separate re tu rn s .

Can we s p li t our credits

fo r dependents?
A.

No*

The c re d it can be taken only by the person v&o furnishes the

ch ief support of the dependent.

However, i f you and your wife

furnished ch ie f support t o d iffe re n t dependents, you should each
l i s t your own dependents on your own return«
56.

Cl*

Isn ’ t there a c re d it against the V ictory t a x based on fam ily status
and dependents?

A.

Tea.

Where does i t show on th e short form?

This c re d it formerly was ca lle d a "post-war c r e d i t ," but because

most persons were e lig ib le to take th e c re d it c u rre n tly , Congress
decided to give i t to everyone annually.

On the sh o rt form, however,

the trou ble o f figu rin g out a gross V ictory t a x , the amount of credit»)
and the amount o f net V icto ry t a x has been saved you by combining
a l l these operations into a sin gle arith m etical s te p .

Tou w ill fiad

a t the bottom of the back page a 2 -lin e ta b le , givin g d ifferen t

-

10

-

Q*

How do I figu re my personal exemption on the short form?

A«

You are e n title d , o f cou rse, t o a personal exemption of $500 i f
sin gle o r $ 1 ,2 0 0 i f married o r head o f a fam ily, but on th is form
you do not have to put any such fig u res down*

In stead , you w ill

various fam ily con d ition s, such a s sin g le , m arried, e tc *
the one th a t f i t s you*

Check

The form then w ill t e l l you in which column

o f th e t a x ta b le (rig h t below the fam ily boxes) to fin d your income
t a x , already computed fo r you on the b a sis o f your personal exemption.
Q*

Suppose I was married o r divorced or changed my fam ily s ta tu s in
some other way during the y ear?

A*

On the short form, you fig u re your fa n ily sta tu s according to what
i t was on Ju ly 1 , 1943, disregarding any ehange during th e year*

On

as married fo r the whole y e a r, and i f married on Ju ly 2 are regarded
as sin g le fo r th e whole year*

I f th is arrangement appears unfair

in your ease, you have th e a lte rn a tiv e of using the long fbim 1040,
in which you can p ro -ra te your personal exemption according to the
number of months during the year you occupied each statu s*
Q,* Where do I show my c re d it fo r dependents on the sh o rt form?

each dependent l i s te d ( i f you are not a married person liv in g with
your husband o r w ife, and one o f the lis te d dependents q u alifies you
as a "head of fam ily ", then fig u re a c re d it only f o r each dependent
except one)*

Put th e t o t a l c re d it in the right-hand column*

9
But, to provide a corresponding exemption for children who support
aged parents or widows who support minor children and similar
persons, the tax law set up the special classification of "head of
family1* which is also entitled to a #1,200 exemption*

Confusion in

texms can he avoided if you think of married persons as one group
and "others who are head of fanily" as the second group*
47*

Q,* How do I know if I am a "head of fanily?"
A*

The tax term "head of family" means a person who meets these four
tests: (1) supports one or more dependents in one household, (2)
is closely related to the dependents by blood, marriage or adoption;
(3) exercises family control and care of his dependents, and (4)
exercises family control on the basis of some moral or legal
obligation*

48«

Q.

I*m a widow and my boy is in the Army*

Can 1 claim him as a

dependent in order to qualify as "head of a family"?
A*

Sorry*

Members of the armed services are considered to be under the

Q.

exclusive control of the government*
s h o r t FQ R W L
I don't see any place on short Form 1040A for dedusting business

■'

49.

expenses and such things as interest, taxes, medical costs, and
contributions*
A*

Since the tax table and the credit for dependents on this form
already allow the equivalent of average deductions, ordinarily no
deductions of any kind can be taken*

There are two exceptions*

In

listing your wages, etc*, in Item 1, you can disregard (a) ordinary
and necessary traveling expenses in the course of your business, for
which you are reimbursed by your employer; and (b) up to #1,500 of
active service pay if you were in any of the armed services at any
time during the year

because of deduction o f #5 fo r war bonds, #4 ta x e s and $1 union dues.
Your income i s s t i l l $90 and th a t i s th e figu re you must use in
reporting your income on the t a x retu rn *
Q*

War bonds in crease in value every s i x months*

How do I figu re the

in te r e s t?
A«

O rdinarily, the in te r e s t on bonds i s counted as soon as i t becomes
payable, but a sp e cia l ru le has been adopted f o r war bonds*

You can

choose whether you w ill e^eavfe the in crease in value o f your war bonds
each year or you can wait u n til you cash the bonds or th ey reach
m aturity and count th e in te re st-

a t one time*

But once you

choose -o»e~ef~th©se methods*, you must do th e same thing every year*
IfllpF

A

Q*

What i s annuity income and how i s i t figu red fo r ta x purposes?

A*

Annuity income includes the payments received from an annuity
insurance p o lic y , a pension or retirem ent fund, or th e li k e ;
excepting, o f course, t ax-exempt government pensions to war veterans
o r th e ir fam ilies*

I f you didn’ t pay or co n trib u te anything to the

annuity5the whole payments represent taxab le income*

I f you did

pay p a rt o r a l l the c o s t o f the annuity, you re p o rt as "income" each
year only an amount equal t o 3 percent of what you paid*
the payments you have receivedlequal what you paid«
a l l the payments are taxab le income*

u n til

Then, a fte r that),

Your insurance company or fund

manager can advise you on these figures**"
Q,* What do you mean "head of fam ily"?

I s n 't every fa th e r a head of a

family?
A*

Of course, a fa th e r i s a head of a fa n ily in the common usage of the
th a t i s slight
d ifferen t«

O rdinarily, the fa th e r o r husband (o r the mother or wife)

g ets h is or her #1,200 personal t a x exemption as a "married" person*

t
A*

Such payments are income as soon as they are made unconditionally
available to you*

For instance, if your employer puts your pay

into an account which you can draw upon as you please, then the money
is income whether you draw upon it or not*

Also, a dividend cheok

is income when you receive it whether you cash it. or not*

But if

your employer merely owes you some pay and you file your income tax
returns on the cash basis (few individuals use the accrual system),
then the pay isn’t income

either gives you the money

or arranges so you can draw upon it*
42«

What types of Income are exempt?
A*

The first $1,500 of the annual pay received for "active service" by
a

of the armed services, death payments on an insurance policy

a part of annuity or endowment payments (usually an emount equal, to
w M T i h e policy or contract earn*}; money or property received by
gift, bequest^devise or inheritance (but not the income from such
property), interest on bonds and other obligations of state and
local governments, and also interest on certain federal securities
issued before March 1, 1941; amounts received Twh^accident or
health insurance, or workmen’s compensation laws, and also damages
received on account ofTinjuries or sickness; most veterans pensions
and disability compensation; also the rental value of a dwelling
provided to a minister as part of his compensation*
43*

Q.

There are a lot of things deducted from my pay*

Is my income the

full amount of my pay, or just the amount I get after deductions?
A*

You must report as income the full amount of your pay (except member«
of armed forces) before any deductions were made for such things as
social security, income tax, union dues, war bonds, etc*

For

instance, s uppose your pay was $50 a weak, but you got only $40 cash

ft*

How much i s the V icto ry ta x ?

A*

5 per cent le s s a c re d it which reduces the t a x by ox»-fourth or
more* depending on whether you a re sin g le or married and how many
dependents you support*

On short T o m 1040 A you w ill find the tax

expressed as a net r a t e (fo r example, 3$ f o r a married person with
no dependents), but there are lim ita tio n s on the c r e d it which make
i t necessary on long T o m 1040 to fig u re the gross ta x (5$) and the
c re d it sep arately *
ft*

My w ife and I f ile d a jo in t d e claratio n of estim ated ta x la s t
September*

A*

Yes*

Can we f i l e separate retu rn s now?

You may f i l e jo in tly or se p a ra te ly regard less of how you

f ile d any retu rn s o r d eclarations previously*
ft*

My young son worked during summer vacation*

Does he have to f i l e

a re tu rn , o r do I include him in ®v retu rn ?
A. Ordinarily, the earnings of children are included in the returns
of parents. However, if the child has earnings that legally belong
to him, as where he has been required to support hfmselfj and if
such earnings, together with the income from property belonging to
him or from funds held in trust for him, amount to #50,0 or more,
then he must file his own return, or a return must be filed ior

ji

him by his guardian or parent.
« ■■

m anor a on o r

aaugaver

'V'":'~in

one o f the armed serv ices^ *

include h is deductions,
/

c re d its f o r ta x e s withheld from wages, e tc *

ft*

Supposing I have seme pay or dividends, or th e lik e , coming to me
but haven't a c tu a lly received th e cash during the year*
to count th a t as income?

Do I have

$

m

- 5 Warn short for® 104OA

,w
^
^
** unnecessary to l i s t deductions becaiJ
tha equivalent o f deductions equaling 8 p«r sent o f tout ineose i s allowed
autom atically* Also» on th i s f e r n , your income t a x i s shown in s ta h ls and can b*
found without computations. Because th e long form 1040 i s designed f o r persons
with la rg e r income or m o m complicated personal a f f a ir s » th a t for® i s necessarily
more d e ta ile d . I t re q u ire * item ising o f deductions» arith m etical computation of
h fiX p 01#6e

25.

Q*

Who can use the short for® 1040A?

A.

Anyone who is a c itiz e n or resid en t o f the United S ta te s , whose
income f o r 1943 was #3,000 o r le s s » and received a l l h is income
from wages» sa la rie s» bonuses» commissions» dividends» In te re s t
end annuities*

26*

is

XT

Q.

Can both my w ife and I use the short form?

A*

I f you are f ilin g separate re tu rn s , -the Aeiaa^conditions) apply to you,
plus the additional condition th a t i f one of you uses the long fom
1040 the other cannot use th e short form*

I f you are f i l i n g a joint

re tu rn , the sane conditions apply, plus th e ad d ition al conditions
th a t you were liv in g togeth er on Ju ly 1 , 1943, and th a t your combined
income does not exceed #3,000*
27*

28*

Q,.

Who can use th e long for® 1040?

A*

Anyone*

Q,.

How much i s the reg u lar income tecs?

A*

The re g u la r income ta x on 1943 incomes Includes a s o -c a lle d "normal*
ta x o f 6 percent plus a "surtax** which begins a t 13 percent and
in creases by steps o r brackets t o a maximum of 82 percent*

The

minimum s u rta x r a te o f 13 percent app lies to ^ ^ irtax net incomes
below #2,000*

The maximum r a t e of 82 percent applies to sim ilar

income above $aoo,ooo.

- 4 18*

q*

How much is forgiven?

A#

In most c a s e s , 75 percent of the sm aller y e a r 's ta x *
y e a r's t a x was #50 o r l e s s , i t i s a l l forgiven*

I f the smaller

I f the ta x was

between #50 and #66*67, th e forgiveness i s a f l a t #50*

I f the tax

was over #66*67, the forgiveness i s 75 percent*
19*

q*

What about the p a rt th a t was not forgiven?

A*

You owe the unfargiven portion as p a rt of your 1943 tax*

80* q*
A*

When does i t have to be paid?
At l e a s t one-half o f the unforgiven t ax must be paid on or before
March 1 5 , 1944»

The remainder can be postponed, without in te r e s t,

u n til March 1 5 , 1945*
21*

q.

How many d iffe re n t hinds o f forms do I have to f i l l in for my return
on 1943 income?

A*

Only one, but

hatire A choice of two forms— a short form

numbered 1040A and a longer form numbered 1040*
^ 22.

q*

Where can I g et copies of th ese forms?

A*

Copies were mailed out to a l l persons who f i l e d a re tu rn on 1942
income, but i f you d id n 't get co p ie s, o r need more, you can get
them frcm any o f f ic e of a C o lle cto r o f In te rn a l Revenue*

Banks and

other public places also freq u en tly have supplies f o r th e convenience
of the public*
23*

q.

Are there any in stru ctio n s on o r with th e form to help me f i l l i t in?

A*

Yes*

Many s p e c if ic d ire ctio n s w ill be found on th e form i t s e l f , and

additional in stru ctio n s are printed on separate sheets and accompany
the fcrm*
24*

q*

What i s the d ifferen ce between th e 1040 and 1040A forms?

- 3 A#

The ta x e s taken out e f your wages are only approximate#

I t is

impossible f o r e ith e r you ©r the government to know the amount of
your exact ta x u n til the end of th e year#

That is why, a t th e end

of the y e a r, you have to f i l e a re tu rn to determine whether you owe
any more t a x or whether you alread y paid to o much and a re e n titled
to a refund#
12# Q# Do I have to f i l e a claim , h ire a lawyer or go to some oth er kind
of trou ble t o g e t my refund?
A# No#

There is a space r ig h t on the retu rn where you show th e amount

of refhnd you claim and make a check mark to show th a t you want i t
refunded#

A fter your fig u re s have been v e r if ie d , a check w ill be

mailed to you#
13#

Q# Where’ s a l l the forgiveness th a t everyone talked about l a s t summer?
A#

14#

I t w ill show on your 1943 return#

Q# What i s the purpose of forgiveness?
A# When th e pay-as-you-go system of income ta x c o lle c tio n s ta rte d
Ju ly 1 , 1943, you already owed your 1942 tax#

To re lie v e you of

paying two years* ta x e s in one y e a r, Congress decided to forgive
p art of one y ear’ s tax#
15#

Q# W ill the farm show me how to fig u re my forgiveness?

15. A. Yes.

A#

see line 11 on P o m 1040A and line 19 on Form 1040.

The forgiveness fe a tu re i s figured on the o a sis

U JL

O A VUDA*

jr U U C

l i *

ta x o r the t a x on your 1943 income, whichever is smaller#
17#

Q,# I f forgiveness i s figu red on the sm aller of th e two y ears, what
happens to th e bigger year’ s ta x ?
A#

You owe a l l o f the biggar year’ s t a x , but you probably have paid most
o f i t already under th e psy-as-you-go system#

-

2

-

States on the f ilin g date have an autom atic postponement u n til a f te r they
come back or the war ends*
Q.

My husband i s in the army on the I ta lia n fro n t*

Bo I have to file ?

A*

I f a serviceman i s on sea duty o r outside of th e continental United
S ta te s and h is w ifevs own income i s le s s than #1,200 she may also
postpone her return*

7*

Q*

7. A.

I f her income i s #1,200 o r more she xmmt file«

Can my wife and I choose whether we want to f i l e separate returns or
Yes, but a choice once made for a given year cannot be amended
for that year.

8«

Q,* Inhere should I f i l e my re tu rn and payment?
A*

At the o f f ic e o f the C o llecto r o f In tern al Revenue for the d istil et
in which you liv e or have your p lace of business*
the address, inquire a t your lo c a l post o ffice *

I f you don't know
I f you have n© legal

residence or place o f business, you should f i l e with the "Collector
o f In tern al Revenue, Baltim ore, Maryland•"
9«

Q*

W ill he help me f i l l in these forms?

A*

Every C o U ecto rt s o f f ic e w ill provide as many train ed deputies as
possible to a s s i s t the p u b lic, but i f you need th is se rv ic e you
had b e tte r come in a t the e a r l i e s t possible date to avoid long lines«
Thousands o f th e train ed men of th e Bureau of In te rn a l Revenue are in
the armed s e rv ic e s , and the number who w ill be availab le t o give
public assista n ce w ill be n e ce ssa rily lim ited*

10 *

Q*

Can I mail my retu rn t o th e c o lle c to r or do I have to bring i t in
person?

A*

You may b rin g , mail o r send your re tu rn in any manner convenient to
you, provided i t reach es him by midnight, March 1 5 , 1944*

11• Q,* My employer has been taking ta x e s out of my wages*
supposed to pay me up?

I s n 't th a t

Why do I have t o f i l e a re tu rn ?

ÎR E A S îiB T JD g P A R T M E N T

®nr4«i of Internal

Wa shingtorr--- —

$f§ RELEASE,
( S;
Sunday,

STO)AT
newspapers,

Press Service
No. fume
40-88

March 5 , 1944
11"1**wwy*^

n)W>i

retu rn which must be f i l l e d in and f ile d between now and March 1 5 :
/U% u a —« t t M . dUJ L *

1*

^

Q,.

What kind5 of ta x are ^

f ilin g a t th is tim e?

A*

Income and v ic to ry ta x f o r 1943, including th e unforgiven portion of
1942 income ta x *

2*

Q,.

My employer has been withholding ta x from my paycheck every week
and, b esid es, I paid some estim ated ta x on a d e cla ra tio n l a s t
September*

A*

Didn’ t th a t take care of i t ?

You w ill g e t f u ll c r e d it on your re tu rn f o r a l l your payments, but
you must s t i l l f i l e a retu rn *

3.

Why^
A*

Returns must s t i l l be f ile d on o r before March 1 5 , 1944 to determine
Whether you underpaid your ta x e s , in which ease you’ l l have a pay­
ment to make, or whether you overpaid your ta x e s , in which case

i

you’ l l be e lig ib le f o r a refund*

m

1 :vf

4*

r '4•

Q*

Who

A*

1*

H»

2*

ipil

3*

#1,200
o r more*

■

4*

5*

Q* Does th at include men and women in the armed s e rv ic e s?
A*

Only I f they are station ed w ithin th e United S ta te s on March 15*
Service personnel on se a duty or outside o f the continental United

w
m im

THEASURI DEPARTMENT
Bureau of Internal Revenue
Washington

FOR RELEASE SUNDAY NEWSPAPERS,
Sunday, March 5» 1944«

Press Service
No. 40-38

100 Questions and Answers about
Your Federal Income Tax
.lowing are official Bureau of Internal Revenue answers to 100
lS about your 19 4 3 individual income and victory tax return which
filled in and filed between now and March 15 •
1,

2 .

3*

4*

Q#

What kinds of tax are covered by returns we are filing at
this time?

A.

Income and victory tax for 1943, including the unforgiven
portion of 19 4 2 income tax,

Q.

My employer has been withholding tax from my paycheck every
week and, besides, I paid some estimated tax on a declaration
last September. Didn't that take care of it?

A.

You will get full credit Oh your return for all your payments,
but you must still file a return#

Q.

Why must I file a return?

A.

Returns must still be filed on or before March 15, 1944 to
determine whether you underpaid your taxes, in which case
you'll have a payment to make, or whether you overpaid your
taxes, in which case you'll be eligible for a refund#

Q.

Who must file?

A.

1.

Any single person whose total income in 1943 was $500 or
more.

2.

Every husband or wife, whose individual income w0s more
than $624«

3#

Every husband and wife Yihose combined total income was
$1 ,2 0 0 or more.

4.

Every individual who paid or owed a* tax on 1942 inoome#

Q#

Does that include men and women in the armed services?

A#

Only if they are stationed within the United States on March 15»
Service personnel on sea duty or outside of the continental United States on the filing date have an automatic postponement
until after they come back or the war ends.

-

6.

7.

8.

9«

10.

-

Q.

My husband is in the army on the Italian front.
file?

k .

If a serviceman is on. sea duty or outside of the continental
United States and his wife’s own income is less than $1*200
she may also postpone her return. If her income is $1*200 or
more she must file.

Q.

Can my wife and I choose whether we want to file separate
returns or a ^oint return?

A.

Yes* but a choice once made for a given year cannot be amended
for that year.

Q.

Where should I file my return and payment?

a.

At the office of the Collector of Internal .Revenue for the district
in which you live or have your place of business. If you don't
know the address* inquire at your local post office. If you have
no legal residence or place of business, you should file with
the "Collector of Internal .Revenue* Baltimore* Maryland."

Q.

Will he help me fill in these forms?

A.

Every Collector’s office will provide as many trained deputies
as possible to assist the public* but if you need this service
you had better come in at the earliest possible date to avoid
long lines. Thousands of the trained men of the Bureau of
Internal Revenue are in the armed services* and the number who
wilx be available to give public assistance will be necessarily
limited.

Q. Can I mail my return to the
in person?
A.

11.

2

Do I have to

collector or do I have to bring it

You may bring* mail or send your return in any manner convenient
to you, provided it reaches him by midnight* March 15* 1944.

Q* My employer has been taking taxes out of my wages. Isn’t that
supposed to pay me up? Why do I have to file a return?
A. The taxes taken out of your wages are only approximate. It is
impossible for either you or the government to know the amount
of your exact tax until the end of the year. That is why* at
N
the end of the year* you have to file a return to determine
whether you owe any more tax or whether you already paid too
much and are entitled to a refund.

12.

Q.

Do I have to file a claim* hire a lawyer or go to some other
kind of trouble to get my refund?

A.

No. There is a space right on the return where you show the
amount of refund you claim and make a check mark to show that
you want it refunded. After your figures have been verified,
a check will be mailed to you.

- 3 13.

14 .

15.

16.

17.

IB.

19.

20.

21*

Q.

Where's all the forgiveness that everyone talked about last
summer?

A.

It will show on your 194-3 return*

Q.

'What is the purpose of forgiveness?

A,

When the pay-as-you-go system of income tax collection started
July 1, 194-3j ydu already owed your 1942 tax. To relieve you
of paying two years' taxes in one year, Congress decided to
forgive part of one year's tax.

Q.

Will the form show me how to figure my forgiveness?

A,

Yes. See line 11 on Form 104.0a and line 19 on Form 104-0.

Q*

Does it apply to my 1942 tax?

A.

The forgiveness feature is figured on the basis of either your
1942 tax or the tax on your 1943 income, whichever is smaller.

Q.

If forgiveness is figured on the smaller of the two years, what
happens to the bigger year’s tax?

A.

You owe all of the bigger year's tax, but you probably have paid
most of it already under the pay-as-you-go system.

Q.

How much is forgiven?

A.

In most cases, 75 percent of the smaller year's tax. If the
smaller year's tax was $50 or less, it is all forgiven. If
the tax was between $50 and $66.67, the forgiveness is a flat
$50. If the tax was over $66.67, the forgiveness is 75 percent.

Q.

What about the part that was not forgiven?

A.

You owe the unforgiven portion as part of your 1943 tax.

Q.

When does it have to be paid?

A.

At least one-half of the unforgiven tax must be paid on or
before March 15, 1944* The remainder can be postponed, without
interest, until March 15, 1945.

Q.

How many different kinds of forms do I have to fill in for my
return on 1943 income?

A.

Only one, but many taxpayers will have a choice of two forms—
a short form numbered 1040A and a longer form numbered 1040.

-

22.

23.

24.

25.

26.

27.

28.

4

-

Q.

Where can I get copies of these forms?

A.

Copies were mailed out to all persons who filed a return on
1942 income, but if you didn’t get copies, or need more, you
can get them from any office of a Collector of Internal
Revenue. Banks and other public places also frequently have
supplies for the convenience of the public.

Q.

Are there any instructions on or with the form to help me fill
it in?

A#

Yes. Many specific directions will be found on the form itself,
and additional instructions an© printed on separate sheets and
accompany the form.

Q.

What is the difference between the 1040 and 1040A forms?

A.

On short form 1040A it is unnecessary to list deductions because
the equivalent of deductions equaling 6 per cent of your income
is allowed automatically. Also, on this form, your income tax
is shown in a table and can be found without computations.
Because the long form 1040 is designed for persons with larger
income or more complicated personal affairs, that form is
necessarily more detailed. It requires itemizing of deductions,
arithmetical computation of tax, etc.

Q.

Vlho can use the short form 1040A?

A.

Anyone who is a citizen or resident of the United States, whose
gross income for 1943 was $>3*000 or less, and received all his
income from wages, salaries, bonuses, commissions, dividends,
interest and annuities.

Q.

Can both my wife and I use the short form?

A.

If you are filing separate returns, the conditions stated in the
answer to question 2$ apply to you, plus the additional condition
that if one of you uses the long form 10 4 0 the other cannot use
the short form. If you are filing a joint return, the same
conditions apply, plus the additional conditions that you were
living together on July 1, 1943* and that your combined gross
income does not exceed $>3*000.

Q.

TrVho can use the long form 1040?

A.

Anyone,

Q.

How much is the regular income tax?

A.

The regular income tax on 1943 incomes includes a so-called
"normal” tax of 6 percent plus a "surtax” which begins at 13
percent and increases by steps or brackets to a maximum of
82 percent. The minimum surtax rate of 13 percent applies to

m

-

5

-

surtax net incomes below $2,000, The maximum rate of 82
percent applies to similar income above $200,000,
29»

30,

40,

4l*

4 2.

Qu

How much is the Victory tax?

A*

5 percent less a credit which reduces the tax by one—fourth
or more, depending on whether you are single or married and
how many dependents you support, On short Form 1040A you
will find the tax expressed as a net rate (for example,
3$
a married person with no dependents), but there are
limitations on the credit which make it necessary on long
Form 1040 to figure the gross tax ( 5 % ) and the credit
separately,

Q,

My wife and I filed a joint declaration of estimated tax last
September, Can we file separate returns now?

A,

Yes, Xou may file jointly or separately regardless of how you
filed any returns or declarations previously,

Q*

My young son worked during summer vacation. Does he have to
file a return, or do I include him in my return?

A,

Ordinarily, the earnings of children are included in the
returns of parents. However, if the child has earnings that
legally belong to him, as where he has been required to support
himself, and if such earnings, together with the income from
property belonging to him or from funds held in trust for him,
amount to $500 or more, then he must file his own return, or
a return must be filed for him by his guardian or parent. You
are not required to include the earnings of a minor son or:,
daughter in one of the armed services. If you•include the income
of a .child;, in your ovm return, -you may also include .his deductions,
credits for taxes withheld from wages, etc,

Q*

Supposing I have some pay or dividends, or the like, coming to
me but haven't actually received the cash during the year. Do
I have to count that as income?

A,

Such payments are income as soon as they are made unconditionally
available to you. For instance, if your employer puts your pay
into an account which you can draw upon as you please, then the
money is income whether you draw upon it or not. Also,
a dividend check is income when you receive it whether you cash
it or not. But if your employer merely owes you some pay and
you file your income tax returns on the cash basis (few in­
dividuals use the accrual system), then the pay isn't income
until your employer either gives you the money or arranges so
you can draw upon it.

Q,

What types of income are exempt?

■y>.1

— 6

43.

44^

45»

—

A.

The first $1,$00 of the annual pay received for "active
service" by a member of the armed services, death payments on
an insurance policy* a part of annuity or endowment payments
(usually an amount equal to the cost of the policy or contract);
money or property received by gift, bequest, devise or in­
heritance (but not the income from such property), interest on
bonds and other obligations of state and local governments, and
also interest on certain federal securities issued before
March 1, 1941; amounts received through accident or health
insurance, or workmen’s compensation laws, and also damages
received on account of such injuries or sickness; most
veterans’ pensions and disability compensation; also the rental
value of a dwelling provided to a minister as part of his cornpens ation*

Q.

There are a lot of things deducted from my pay. Is my income
the full amount of my pay, or just the amount I get after
deductions ?

A,

You must report as income the full amount of your pay (except
members of armed forces) before any deductions were made for
such things as social security, income tax, union dues, war
bonds, etc. For instance, stippose your pay was $50 a week, but
you got only $40 cash because of deduction of $5 for war bonds,
$4 taxes and $1 union dues, lour income is still $50 and that
is the figure you must use in reporting your income on the tax
return.

Q*

War bonds increase in value every six months.
the interest?

A,

Ordinarily, the interest on bonds is counted as soon as it
becomes payable, but a special rule has been adopted for war
bonds. You can choose whether you will report the increase in
value of your war bonds each year or you can wait until you cash
the bonds or they reach maturity and count the interest all at
one time, But once you choose to report the increase in value
of the bonds as income, you must do the same thing every year.

Q.

What is annuity income and how is it figured for tax purposes?

A*

Annuity income includes the payments received from an annuity
insurance policy, a pension or retirement fund, or the like;
excepting, of course, tax-exempt government pensions to war
veterans or their families. If you didn’t pay or contribute
anything to the annuity, the whole payments represent taxable
income. If you did pay part or all the cost of the annuity,
you report.as "income" each year only an amount equal to
3 percent of what you paid, until the payments you have received
free of tax equal what you paid. Then, after that, all the
payments are taxable income. Your insurance company or fund
manager can advise you on these figures.

How do I figure

- 7 -

46,

4-7.

4-B*

Q*

.^hat do you mean “head of family"?
of a family?

À#

Of course, a father is a head of a family in the common usage
of the phrase, but when we talk about income taxes the phrase
has a special meaning that is slightly different. Ordinarily,'
the father or husband (or the mother or wife) gets his or her
$1,200 personal tax exemption as a "married" person* But to
provide a corresponding exemption for children who ‘support
aged parents or widows who support minor children and similar
persons, the tax law set up the special classification of "head
of family" which is also entitled to a $1,200 exemption* Con­
fusion in terms can be avoided if you think of married persons
as one group and "others who are head of family" as the second
group,

Q,

How do I know if I am a "head of family"?

A.

The tax term "head of family" means a person who meets these four
testsi (1) supports one or more dependents in one household,
(2) is closely related to the dependents by blood, marriage or
adoption; (3) exercises family control and care of his dependents,
and (4 ) exercises family control on the basis of some moral or
legal obligation.

Q*

I'm a widow- and my boy is in the Army, Can I claim him as
a dependent in order to qualify as "head of a family"?

a

.

Isn't every father a head

Sorry, liembers of the armed services are considered to be under
the exclusive control of the government*
THE SHOltT FORM

49 • Q.

$0,

I don't see any place on short Form 1040«. for deducting business
expenses and such things as interest, taxes, medical costs, and
contributions.

A,

Since the tax table and the credit for dependents on this form
already allow the equivalent of average deductions, ordinarily
no deductions of any kind can be taken. There are two
exceptions, In listing your wages, etc., in Item 1, you can
disregard (a) ordinary and necessary traveling expenses in the
course of your business, for which you are reimbursed by your
employer; and (b) up to $1,500 of active service pay if you
were in any of the armed services at any time during the year.

Q.

How do I figure my personal exemption on the short form?

A*

You are entitled, of course, to a personal exemption of
$500 if single or $1,200 if married or head of a family, but
on this form you do not have to put any such figures down.
Instead, you will find at the top of the back page a group

-

8

-

of boxes describing various family conditions, such as single,
married, etc. Check the one that fits you. The form then will
tell you in which column of the tax.table (right below the
family boxes) to find your income tax, already computed for you
on the basis of your personal exemption.

I

51*

52.

53»

54»

55.

Q*

Suppose I was married or divorced or changed my family status
in some other way during the year?

A.

On the short form you figure your family status according to what
it was on July 1, 1943, disregarding any change during the year.
On this form, for instance, newlyweds married on June 15 are
regarded as married for the whole year, and if married on July 2
are regarded as single for the whole year. If this arrangment
appears unfair in your case, you have the alternative of using
the long Form 1040, in which you can pro-rate your personal
exemption according to the number of months during the year you
occupied each status.

Q,

Yihere do I show my credit for dependents on the short form?

A.

YiTrite in Item 4 the names and relationship of each dependent
you supported on July 1, 1943* and the reason for supporting
any dependent who is 18 or over. Then figure a credit of
$385 for each dependent listed (if you are not a married
person living with your husband or wife, and one of the listed
dependents qualifies you as a "head of family", then figure
a credit only for each dependent except one). Put the total
credit in the right-hand column,

Q.

Is this credit based on the same definition of dependency
given for "head of family"?

A.

No, To qualify for this credit a dependent needs to meet only
these tests: (1 ) he was either under 18 years of age (on
July 1, 1943) or mentally or physically incapable of self-support;
and (2 ) received more than one-half of his support from tte
taxpayer.

Q*

I thought the credit for dependents was $3 5 0 *
$385?

A,

The credit actually is $350, but on the short form you are
allowed $385 because the extra $35 is an extra allowance to
compensate you for such items as "earned income credit" which
are not figured separately. In other words, to make this form
easier to fill out, some of the calculations that are ordinarily
done separately on the long Form 1040 are combined on short
Form IO4OA,

Q*

Ivly wife and I are filing separate returns.
credits for dependents?

YJhy do you say

Can we split our

- 9 -

56.

A.

No. The credit can be taken only by the person who furnishes
the chief support of the dependent. However, if you and your
wife furnished chief support to 'different dependents, you
should each list your own dependents on your own return.

Q.

Isn’t there a credit against the, Victory tax based on family
status and dependents? Where does it show on the short form?

A.

Yes. This credit formerly was called a ’’post-war credit,” but
because most persons were eligible to take the credit currently,
Congress decided to give it to everyone annually. On the short
form, however, the trouble of figuring out a gross Victory tax,
the amount of credit, and the amount of net Victory tax has
been saved you by combining all these operations into a single
arithmetical step. You will find at the bottom of the back
page a 2~line table, giving different percentage rates according
to whether you are married or single, and how many dependents
you supports By using the rate .that fits your status, you will
find the correct amount of your net Victory tax with full credit
for your family status and dependents, If your arithmetic is
a little rusty, you will find examples at the bottom of the
page showing you how to do it.
THE LONG FORM

57.

58.

59.

Q.

Can I choose between the "cash” and the ”accrual” basis of
figuring income?

A.

No, you should figure income on the cash basis unless you
actually keep books on the accrual basis. The Commissioner’s
approval must be secured before a change may be made.

Q.

What is the ”cash” basis?

A.

Simply, how much cash or its equivalent was received and spent
during the year. However, ’’cash” includes the fair market
value of any goods or services received in lieu of money and
it also includes any payments made available to you, even
though not drawn upon. For instance, you might get a dividend
check in December and fail to cash it until January, but it
was ’’cash Income” in December. Also, you might be a salesman
whose pay was put into a drawing account for you to take
whenever you pleased, and in that case your pay is ’’cash income”
whenever you get the right to draw out the money.

Q.

What is the "accrual” basis?

A.

It is a method of accounting used almost exclusively by
business concerns. It involves valuation of inventories at
the beginning and end of the year, listing of income at the
time it is earned or accrued without waiting to actually get
it, and listing of expenses when incurred without waiting
until paid for.

~

60.

61.

62.

63.

64.

10

-

Q.

I have a l.ot of business expenses for travel, etc.
I deduct them?

A.

In Item 1 on the long Form 1040, you must, of course, list
your total compensation. However, you will notice that in
the same Item there is a line which says, ’’Less Deductible
expenses. Attach Itemized statement*” There is where you
can put down a total figure for- your business expenses. But
if you do enter a figure, you should write down on a piece
of paper a list of what the money was spent for, and attach
the list to your return.

Q.

What expenses can I deduct?

A.

Only those that are actually ordinary and necessary in your
business. If they are required in your job or business, you
can deduct the cost of travel (including meals, lodging,
tips, etc.), entertainment, uniforms which do not take the
place of ordinary clothing, technical or professional
publications, fees to employment agencies, automobile
operation, union dues and assessments, small tools, etc.
If you are reimbursed these or similar costs, you should
also include the amount in your wages or income.

Q.

I spend quite a bit of money going and coming from work, on
commuters fares, bus tickets, etc. Isn’t that business
expense?

A.

Sorry. No deduction is allowed for travel between your home
and place of employment.

Q.

Do I have to list income from such things as gambling?
Where?

A*

Yes, that’s an example of ’’miscellaneous income” and should
be listed in Item 9* Page 1, long Form 1040. However, the
income from gambling may be offset by losses from gambling,
and only the net figure need be reported. But, gambling
losses cannot be offset against any other kind of income.

Q.

How much is my personal exemption for the regular income tax?

A.

$500 for single persons, $1,200 for married persons or others
who are heads of families.

6 5 . Q.
A.

How do

Who do you mean by ”single” persons?
Generally, any unmarried person, including widows, widowers,
and divorcees. For tax purposes, moreover, married couples
who do not live together are regarded as single (couples only
temporarily apart, such as a soldier and his wife, however,
are regarded as ’’living together” for tax purposes).

-

66#

67.

-

Q.

To get the $1,200 exemption, must a married couple live
together?

A*

That’s right.

Q.

’’Schedule I” asks how many months I was single or married,
etc.

68.

11

Why?

A.

On the long form, persons whose family status changed during
the year must pro-rate their personal exemptions accordingly.
For instance, if you were single 6 months of the year and
married six months of the year, the personal exemptions of
you and your wife or husband are figured this way: You are
each entitled to 6/12 (6 out of 12 months) of a $500 single
person*s exemption, and together are entitled to 6/12 of
a married couple’s exemption of $1,200.

Q.

Are the same deductions allowed for victory tax as are

customary for the regular income tax?
A.

69.

70.

No. The only deductions allowed for victory tax are those
resulting from a trade or business or in the care of incomeproducing property. You will notice that on the long form,
opposite most deductions, the spaces in the Victory tax
column have been filled with x’s, indicating nothing should
be entered there. Accordingly, the deductions discussed in
the following Questions and Answers relate, in most cases,
only to the income tax column on the return.

Q. What kinds of contributions can I deduct?
A.

These are ,of a very limited nature. In general, deductions
are allowed for contributions only if (a) they are for
a public, and not a personal purpose; (b) they are given to
an organized or incorporated fund of a charitable, religious,
educational, scientific, literary or governmental nature— (gifts to some veterans organizations also are deductible);
(c) they are not to be used for political or legislative
activities; they are made in money or property (not personal
services); and (d) the amount of the contributions does not
exceed 15 percent of your net income before figuring the
deduction for contributions and medical expenses.

Q.

What are some samples of deductible contributions?

A.

Gifts to the Red Cross, community chests or war funds,
churches, Boy Scouts and Girl Scouts, D.A.R., schools,
non-profit research foundations, Y.M.O.A., hospitals,
infantile paralysis fund, tuberculosis associations, .American
Legion, seamen’s homes, Salvation army, U.S.0.

-

71.

72.

73.

74.

75.

12

-

Q.

Are all interest payments deductible?

A.

Most of them are, including interest on home mortgages and
bank loans. Nondeductible interest payments would include,
for instance, interest on a note which was executed as
a gift; interest paid for the benefit of a relative when
there was no legal obligation to make the payment; interest
on an insurance policy loan vdien the amount of the interest
is simply added to the loan; interest on a debt incurred to
buy a single premium life insurance policy or endowment
contract; interest on loans incurred to buy tax-exempt
securities.

Q.

Can I deduct the interest I pay on instalment purchases of
a car, or furniture, etc*?

A.

Yes, but be careful that you deduct only for the interest
specified in the contract and not for such things as
insurance, carrying-charges, finance charges, and the like.

Q.

Can I deduct the interest I pay on my home mortgage?

A.

Yes, but be sure you separate the interest from other items
included in your payments. Your payments may include
principal, insurance, taxes, etc.

Q.

What taxes are deductible?

A.

The list includes: State income taxes, most state and
local sales taxes, most state gasoline taxes, state and
local real estate taxes (not including special taxes for
paving, sewers and other improvements which increase the
value of your property), automobile license fees (not
including cost of title certificates and inspection fees),
and the federal excise taxes on the following: theater and
sports admissions (but not cabarets and night clubs), club
dues, telephone and telegraph services, safe deposit boxes,
transportation; and the federal stamp taxes on documents,
automobiles and boats. If in doubt as to the deductibility
of sales taxes and gasoline taxes in your State, consult
your Collector of Internal Revenue.

Q.

What taxes are not deductible?

A.

The non-deductible list includes: Federal employment taxes,
federal income or excess profits taxes, state and local
special assessment taxes for paying and the like, gift taxes,
water rents, and the following federal excise taxes:. gasoline,
liquor, tobacco, night club and cabaret, perfumes, jewelry,
toilet preparations, automobiles, tires, oil, refrigerators,
radio, playing cards, electrical energy.

13 -

76.

77.

78.

79.

80#

81.

82.

Q.

What kind of losses can I deduct on account of casualties or
theft?

A*

You can deduct the amount of actual losses (not reimbursed by
insurance or otherwise) caused by storm, fire, flood, ship«»
wreck, tornado and other natural disasters, and also certain
losses due to theft and accident.

Q.

How do I figure my loss?

A*.

By estimating the value of the property just before and after
the loss, and by subtracting any salvage value or reimburse­
ment from insurance or otherwise.

Q,

Do "market values" apply to heirlooms and things with
a sentimental value?

A,

Yes. Sentimental values cannot be measured.
only market values can be considered.

Q.

Are some kinds of loss non-deductible?

A.

Yes, Losses due to willful acts or negligence cannot be
deducted. For example, if you wreck your car while
intoxicated, you cannot deduct the loss. Ordinary mistakes
of judgment in driving a car do not disqualify losses as
deductions, however.

Q.

Can all losses from bad debts be deducted?

Af

No. The loss must result from a loan which the borrower
was legally obligated to repay. Then the loss is deductible
only for the year in which it actually became worthless and
after reasonable steps had been taken to collect. If the
loss resulted from a business transaction, it can be deducted
in full. If the loss resulted from a non—business transaction,
then it can only be treated as a "short term capital loss."

Q.

What about the $50 I loaned my brother-in-law and can’t
collect?

A.

Ordinarily, loans to relatives are regarded as gifts and
losses resulting from them cannot be taken. However, if you
can prove that a loan to a relative was a bona fide debt, and
if you make a real effort to collect and fail, then you can
get a deduction*

Q.

Can I deduct all my medical and dental expenses?

Therefore,

No. To find out how much you can deduct, you must follow
these stepsj
1,

Total up all your medical and dental expenses actually
paid during the year.

2.

Subtract any reimbursement received from insurance or
otherwise.

3*

Subtract an amount equal to 5 percent of your net
income before the medical-dental deduction.

4.

You may deduct the remainder, but not more than
$2,500 for a married couple or a head of family, or
not more than $1,250 in the case of any other taxpayer.

What kind of expenses can I count as "medical and dental'1?
Any actual payments for the diagnosis, cure, mitigation,
treatment or prevention of disease; also any payments for
hospitalization, accident or health insurance; also any
payments for membership in an association providing
cooperative or so-called free-choice medical service.
Is this deduction limited to the cost of doctor, dentist and
hospital bills?
No^ Any actually necessary expense, related to medical and
dental costs can also be included. For instance, the cost
of an ambulance, a special nurse, special equipment, etc.
In 1943* I paid some doctor bills which I ran up in 1942.
Can I deduct these payments?
Yes, Note that the deduction is based on when you paid
for these items.
Aren’t there some special rules about figuring the income
and tax on the sale of securities, and similar transactions?
Yes. If you have sold or exchanged securities or other
property which was held for investment or profit, you must
fill in a separate form, called Schedule. B, and file it
along ^with your long Form 1040. On this schedule, you will
classify your gains and losses according to whether (a) the
property was held for 6 months or less (short term), or (b)
xt was held for more than 6 months (long term), or (c) it
T h L T 6- ? ? 5 °f r ° P erb7 "technically classified as "other
than capxtal assets,"

- 15 87.

88.

89.

90.

91.

92.

Q.

Can net losses from the sale or exchange of capital assets
be offset against other types of incomes?

A.

Yes, up to $1,000. If the net loss exceeds this limit,
the excess can be carried over and applied as an offset
against net capital gains in the next five years and against
other income up to $1,000 fon each year.

Q.

I!m a farmer and just filed a declaration of estimated tax
last December 15. Do I have to file again so soon?

A.

Yes, the law grants farmers a special privilege of delaying
their estimated tax declarations until as late as December 15
each year, but still requires the filing of a return by
March 15.

Q.

Do farmers use the same forms as other people?

A.

Yes. However, an additional form, Form 1040F, headed
"Schedule of Farm income and Expenses," must also be
filed by farmers who report their income on the cash basis.
Farmers using the “accrual" method may use Form 1040F if
they desire.

Q.

The collector mailed me a slip, numbered Form 1125.
do I do with that?

A.

Form 1125 was intended to assist you in filling in your 1943
return. The slip shows, according to the records in the
collectors office, the amount of your 1942 tax and also
how much of the 1942 tax you paid. You will need both
these figures in filling in your return. When you have
finished the return, attach Form 1125 to the return and
file them together.

Q.

What do I do with the little receipt, numbered Form W-2,
which my employer gave me?

A.

Forrr^W-2 is a personal receipt from your employer to you,
showing how much wages he paid you and how much income and
victory tax he deducted from your wages. You will need
these figures in filling in your return, but you should keep
the receipt. Your employer has already given a duplicate
copy of it to the Bureau of Internal Revenue.

Q.

How do I pay the tax shown on my,return?

A.

As shown on the foim, a portion of the unforgiven 1942 tax
may be postponed for a year, but the remainder must all be
paid on or before March 15 and accompany your return.

What

-

93.

94.

95.

96.

97.

98.

16

-

Q.

Can* t I pay this tax in installments?

A.

No. Under the pay-as-you-go system, you are expected to
have already paid all or a substantial part of your 1943
tax and therefore no provision has been made for paying
the remainder in installments.

Q.

Is there anything else that I have to file on March 15?

A,

No.

Q.

Don’t some people have to estimate their 1944 tax and file
a declaration?

A.

Yes, but this year the declaration has been postponed
until April 15. However, the 1944 declaration must not
be confused with the 1943 return which must still be filed
on or before March 15.

Q.

Suppose I find I made a mistake in my return but have
already filed it. What should I do?

A.

Contact the office of the collector where you filed your
return. If your error was simply one of arithmetic, your
mistake probably will be corrected without any action on
your part. If you made a mistake in your income or
deduction entries, it may be necessary for you to file an
amended return.

Q.

I understand that a new revenue act was enacted recently.
Does that change the return forms for 1943?

A.

With one minor exception that applies to only a few tax­
payers, the new law does not change the 1943 return forms.
The one exception is that Congress repealed a special
provision relating to the forgiveness of taxpayers who had
an increase of more than $>20,000 in surtax net income in
either 1942 or 1943* This special provision was contained
in schedules L and L-2 for long Form 1040, and these two
schedules should now be ignored. Otherwise, all other income
tax changes made by the new revenue act apply only to future
tax forms and do not alter the 1943 forms which we are now
filling out.

Q.

Suppose I am critically ill on March 15.
extension of time to file?

A.

Your local collector of internal revenue has authority to
grant extensions. However, extensions will not be given
except under justifiable circumstances, and no taxpayer
should count on an extension unless he has made formal,
application for it and has already received formal approval
from the collector.

Can I get an

- 17 -

99.

100.

Q*

Do I have to make my payment in cash?

A.

You may pay in cash or by money order or check, as you
prefer. Money orders and checks should be made payable
to the "Collector of Internal Revenue.n

Q.

YThat1s the penalty if I file after the deadline?

A.

The law requires the collector to add to your tax, as
a penalty, an amount equal to 5 percent of your tax if the
delay is less than 30 days, plus an additional 5 percent
for every subsequent 30~day delay. The maximum penalty
is 25 percent of your tax.

-

0

-

- 63 On the other hand, some of the costs of the
reconversion period will be unrelated to the war
period and unimportant in maintaining a high level
of employment.

It is, therefore, to the mutual

interest of Government and industry to investigate
the character of those reconversion outlays.

It may

be necessary to circumscribe their tax deductibility
in order to prevent abuse.

For the American people

should not be asked to grant industry a blank check,
even though it promises the most circumspect postwar
behavior,

»or should the way be left open for etraT'
to

d e p riv e

a11

industry of an important means of cushioning the jolts
of the transition period.

•

62

*

Government has always been interested in
industry's profits, but now it is deeply concerned
also with industry’s losses. With Government sharing
those losses, industry can maintain a high level of
production and employment with a smaller stake,
will hold
enormous odds against umemployment even in the face
of a possible depression.

9 M j Lm

(¡¡uJh

61

Whether we like it or not, Government^has become
a partner in industry*s reconversion costs and losses
under the carry-back adjustments*

In dollars and

cents terms, we might say that Government will be the
senior partner for wartime excess-profits taxpayers
with responsibility for 81 percent of their losses*
We might also say that it will be at least an important
junior partner of other income taxpayers with the
responsibility for sharing 40 percent of their losses.
Let us consider just one example.

A large producer

of basic metal will secure $47 million in refunds
from the Government if its net income for tax purposes
in the reconversion period goes down to zero.

This

refund compares with an average net income after taxes
from 1936 to 1939 of $45 million*

V

Government might, therefore, sit on
and leave it to industry to settle its o
warfare and bring forward its own solution*

But since

Government must bear the responsibility for a high
level of postwar production and employment, it cannot
be neutral on the question of reconversion costs*
cannot afford a hands-off policy*

It must see to it

that the best feasible settlement is secured —
a settlement made in the public interest and not
é O u X jÊ M é S & t

CMUSLmm*

group
within industry*

It

As we move from the general to the specific, it
is plain to see that reserves and carry-backs affect
different industries in different ways*

Between the

two, one industry's meat may be another industry's
poison; and even among reserve plans, one industry's
gain may far exceed another's.

I

~ 58 Conclusion
I have referred to industry this morning in the
aggregate.

In doing so I may have implied that

industry presents a united front for reserves and
against the carry-back provisions*

Words are ticklish

things that play tricks on those who use them as well
as those who hear them.

Such an inference could not

be farther from the truth*

'

The proponents of th is unrestricted reserve plan
are re a lly asking the Government to subsidise a portion
of industry’ s postwar expenses#

They ju s tify th eir

attitude b. dwelling upon the resp o n sib ility of Government
for maintaining a high level of postwar employment.

Yet

deductible reserves do not appear to provide a proper
Instrument for the discharge of this resp o n sib ility ,
p articu larly i f they would most b en efit corporations
which havo reaped the g reatest rewards from the war*
I f i t is appropriate for the Government to subsidise
private industry during the tran sition period, the firms
which have profited le a st from the wartime expenditures
of the Government would seem to have the better claim*

\

Certainly i t is doubtful whether the Government should
encourage the postwar expansion of the very Industries
which have expanded most in wartime.

Our peacetime

requirements w ill c a ll not for more shipyards and
munition plants, but rather for more c iv ilia n goods,—
for th© kind of goods which have suffered sharp production

- 56 I do not believe that the facts support the charge
that wartime corporation taxes have been too high for
Industry as a whole*

It would be hard to prove that

they have cut down industry’s ability to finance
necessary postwar outlays*

In 1937 corporations had

left less than $4 billion after paying $1-1/4 billion
of taxes*

In 1943 corporations will have left nearly

$9.2 billion,— even after paying $13*5 billion of taxes.
In 1944 corporate profits after taxes are expected to
reach $9.9 billion, or three times the average annual
profits after taxes in the period from 1936 through

Pz-J

■■

-

19394b- Moreover, It is estimated that even after paying
taxes and dividends, American corporations will accumulate
over $12 billion of undistributed profits for the three
years 1941, 1942, and 1943*

Unrestricted Reserve
S t i l l another altern ativ e to the carry-backs
provides postwar reserves by allowing firms to deduct,
say, 10 or 15 percent of th eir wartime income without
any return of the funds to taxable laconic In the
postwar years when they are used*

This reserve plan

is a plain, unvarnished method of reducing wartime
taxes.

Its advocates cannot urge this reserve upon the

assumption that wartime income was in part illu so ry .
'¿Letter they say so or not, they predicate the need for
the reserve upon the assumption that corporation taxes
are too high to permit postwar expansion and growth, and
the re-employment of returning veterans.

Upon analysis the Hatch plan, as compared with the
carry-back plan, provides the le a s t adequate adjustment
for the firm suffering the moat serious reconversion
problems#

1 m a k e / an adjustment sim ilar to the carry­

backs for firms facing moderate reconversion problems.
To firms facing no reconversion problem and making high
postwar p r o fits , i t grast^ su bstantial w indfalls, I f
tax rates are reduced.

In substance the Hatch plan is

a crude and haphazard application of the idea embodied
in the sp ecific reserve approach#

- 5a -

I f postwar tax rates should be reduced, stay firms
v .

not faced with reconversion problems would secure
undeserved tax b en efits from the Hetch plan,

these

b en efits would take the form of a deduction from
wartime income otherwise taxed a t, say, SO percent and
the inclusion of this amount in postwar income taxed a t,
say, 40 percent.

Under these assumptions a 40 or 50

percent p ro fit could, in e ff e c t, be earned on each
dollar in the reserve.

The firms benefiting would be

those with high postwar income and le a s t in need of
generous tax treatment,
be given.

to those who had, more would

I cannot deny that th is adjustment for reconversion
costs is the simplest that could be made.

However, i t

is not true, that the g reatest benefits w ill go to firms
suffering postwar losses*

Those firms w ill bo in as

good a position under th is method as under the carry-backs,
only i f their losses are le ss than 20 percent of the
wartime income they earned in the period in which they
set up the reserve*

I f th eir losses are more than 20

percent, the Hatch plan w ill leave the firms in a worse
position than the carry-backs would leave them*

ïhree major advantages have bean claimed by
the advocates of the Hatch plan: first, that it
is administratively simple; second, that it grants
the greatest benefits to firms facing the most
serious reconversion problems; and third, that
it provides cash with which to meet reconversion
expenditures.

If me look at the carry-back provisions from the
same standpoint, me see that they can s h ift up to 100
percent of two years1 war income into the postwar
period.

This may look lik e sleight-of-hannj hut i t is

actually the way the carry-back provisions can operate
for firms with low postwar income or a d e f ic it .

Take

n otice, however, that they apply only when income is
sharply reduced, or when losses are suffered*

To the extent that this shift in income is
matched by postwar costs or losses related to the
war, the effect of the Hatch plan would be similar
to the effect of the specific reserve plan.

These

postwar expenses would cancel the additional
postwar income. However, to the extent shifts in
income under this method exceeded or fell short
of these costs and losses an inappropriate
adjustment would result.

- 48 the Hatch plan

mmmmmummm

■mi

Under a plan proposed by Senator Hatch a reserve
would be set up in the same way as under the specific
reserve plan.

But instead of attempting to charge

particular postwar coats against this reserve, the
entire reserve would be added to postwar income*
In

other words, an arbitrary percentage of wartime

income (say, 15 to 20 percent) would be treated
as postwar income, regardless of whether or not
a firm was actually incurring reconversion costs or
suffering a decline in income.

- 47 Moreover, the reserve might be extended to cover
many expenditures not proper!/ deductible from wartime
income*

Unless the lim it on the reserve were placed

so low as to create rea l hardship, i t would exceed the
needs of the majority of taxpayers.

I t is only natural

that the taxpayer w ill develop a proprietary in te re st in
Ms reserves.

He would not be human i f he did not seek

to have the provisions broadened! he would be a superman
who ranked very l i t t l e below Cod and the angels i f he
were w illin g to see funds returned to wartime income and
taxed a t wartime ra te s .

i|

- 48 The second difficulty is how to determine
the «mount of postwar costs to be charged against
the specific reserve*

If the principle underlying

the specific reserve method were rigidly followed,
every item of expense charged against the reserve
would require an administrative determination of
appropriateness.

This determination would be

laborious, and in many instances as complex as
a Section 722 determination.

This limit, usually based on net income,
represents a break with the principle of the
ideal allocation of costs*
instruments*

Limitations are crude

they are likely to be too high for

some firms and too low for others*

Only in the

extraordinary case would the ideal allocation of
postwar costs to wartime income equal the amount
of the reserve deduction in that year* \ Ilor is it
likely in most eases that aggregate postwar expenses
chargeable against the reserve will match the
amounts set aside in earlier years of ignorance.

- 44 Th«re is first the difficulty of estimating
what is ultimately to be charged against the
reserve.

In many cases there is no basis for

approximate estimate.
advocates

of

To resolve this difficulty,

special reserves have suggested an

arbitrary overall limit on the annual reserve
deduction*

• 43 *
In theory

this approach Is sounder and more direct

than the carry-back approach*

Under ideal conditions

a specific reserve can result in a correct tax adjustment
for postwar costs*

the amount of income in the war and

in the postwar period and postwar tax rates make no
difference*

But taxation is an intensely practical

matter and, in practice, the story is different*

The

specific reserve technique brings serious administrative
problems.
igijiLu

In the majority of cases I venture that it
In « 1... aatlaf&ctory •¿¡»■t-.t tta> tl»

carry-back provisions*

Specific reserves
One alternative is the specific reserve
technique*

Under this method a specific reserve

is taken out of wartime income with the idea of
charging against it postwar costs directly related
to wartime income• Any unused portion of the
reserve, after a specified period, would he
returned to wartime income*

Alternative proposals to the carry-backs
So much for the arguments for and against the
carrer-back provisions*

What are the alternatives?

A similar proposal mas not mads for
partnerships and proprietorships. This was not
through oversight, or through any desire on the
part of the Treasury to favor the corporate fora.
Rather it was because partnerships and
proprietorships were put on a current hssis by
the Current Tax Payment Act of 1943y>in a year
of loss partnerships and proprietorships will
base their tax payments for that year on the
estimated

loss, and not on the income earned in

the preceding year«

<*

89

*

This adjustment mould immediately free the
cash or securities held to meet quarterly tax
payments, and would substantially mitigate
working-capital shortages in the reconversion
period*

It would not grant corporations anything

to which they are not now entitled by law.

It

would merely provide a mechanism for expediting
payments of refunds.

On the following March a regular tax return
would present the actual income or deficit of the
taxpayer with a precise computation of the actual
tax

mim&Mtthe

corporation had uad.r..ti*atad

its income and, therefore, postponed too much
tax, it would be required to pay the deficiency«
if it had erred on the conservative side and
postponed too little tax, an additional tax
refund within the shortest reasonable period,
say, 60 to 90 days, would be made«

- 37 -

It m s to rectify this weakness of the carry«
back adjustment that the Treasury proposed to the
Congressional tax committees last year that
provision be made for speeding up the carry-back
refunds. The Treasury proposed that a tentative
claim could be filed when a taxpayer estimated
that a loss would be incurred, or income would
fall below the excess-profits orsdit. On the
basis of an estimate of income or loss for the
year, the tax refund would then be quickly
computed. The Treasury proposed that this estimated
refund could be applied as an offset to tax
installments owing for the balance of the year.

Corporations generally file their tax return*
on March 15th after the close of their business
year, and pay their taxes in quarterly installments
throughout the year.

This means that in a year of

losses corporations must continue paying their
taxes for the previous year even though losses in
the current year clearly indicate reduction of .liability or, indeed, absence of liability, jj^h&t
could be more ridiculous than paying off liabilities
that jlp not exist when liabilities that do exist
arc pounding at the door?

failure to provide working capital
Other people say the carry-backs fail to
provide the necessary liquid funds to make
reconversion and other similar postwar expenditures.
They claim that delay in the payment of tax refunds,
resulting from the carry-hack provisions, will_/^
Xft

neutralise their inherent benefits..J*he refunds

A

would do no more than lock the stable after the
horse is stolen*

^

• 34 Of course, the life expectancy of the carry­
back provisions like the life span of other
provisions of the tax law, may depend upon whether
they are used or abused*

In tax law, as in life,

one may bite the hand that feeds him.

If it

becomes apparent that large refunds of wartime
taxes are resulting from inflated costs or losses,
the possibility of repeal will be enhanced.

There

have been attempts to ‘’sell* these provisions to
industry, with the plea that it can use the carry­
backs to finance postwar expenditures for expansion
and growth.

In effect, a subsidy program is being

urged for industry in the guise of tax relief.
A

X

I hope that industry will resist the smooth-tongued
salesmen who peddle such spurious goods.

- 33 Danger of repeal
Some people object to the carry-back provisions
on the ground that they may be repealed at the very
time when they are most needed#

This c r it ic is m

obviously rests on the assumption that the commitments
made by the 77th Congress are not firm#

The carry­

back provisions admittedly differ from most other tax
provisions in that their effect on current tax yields
may be delayed two or even more
since they were enacted in lieu of reserve adjustments
and in full recognition of their importance in
achieving a correct statement of wartime taxable
income, I cannot believe that the possibility of
their repeal is as great as some pessimists imagine#

So far X have been talking about postwar expenses
attributable to the war. This is only one phase of
the problem of allocating costs// the carry-back
provisions ¿0 not restrict themselves solely to costs
and losses directly related to the earning of wartime
incomef they allow a carry-back to postwar costs
which have nothing to do with war income,

for example,

a firm embarking on a postwar advertising program to
establish itself in a new market may deduct these
costs from wartime income, even though they should
be charged against future income,

hueh a misallocation

of costs may have serious effects, if postwar tax
rates are reduced, and constitute a defect in the
carry-back technique.

//

- 31 -

In fact, it appears that failure to deduct
expenses in the theoretically correct year does
no harm so long as tax rates remain the same in
the postwar period.

True, if tax rates go down

it would make a good deal of difference whether
an expense is deducted from income taxed at an SO
or 86 percent rate, or fro® income taxed at, say,
a 40 percent rate.

Firms continuing to earn

profits in excess of income or invested-eapital
credits will not be affected by the carry-back
provisions,

those firms will receive smaller tax

reductions than they would obtain from a direct
charge of postwar costs against wartime income.
Whatever the inequity in this situation may be,
we must remember that the firms so penalised will
be those suffering least from the after effects
of the war.

Improper Cost Allocation
Some people say that the carry-back provisions
assign postwar expenses to the wrong year*

They mean

that although certain postwar expenses may be deducted
from postwar income, those expenses may not find their
way back as offsets against war income*

To this

charge the relatively crude carry-back adjustment
must plead guilty*
adjustment*

I t is an overall, not a specific,

Here again, we may move from the ideal

to the practical; this charge is a serious condemnation
of the carry-back provisions only if their allocation
of costs would result in an inequitable tax adjustment*

• 29 -

Reconversion costs must be incurred within
a

reasonably short period after termination of

within a year or two*

Those expenses directly

related to wartime income will generally be
contracted within that relatively brief time.
It will be the extraordinary case where a gradual
tapering off of war production, combined with

m

inability to make any headway in reconverting,
will substantially reduce the carryback base of
any on# firm,

i

- 28 Aggregate corporation deficits in our worst
depression year —
billion.

1932 —

amounted to only $8

Unless we assume a long, chaotic reconversion

period, it seems unlikely that postwar deficits
will approach this figure*

libile reconversion m y

bring about substantial temporary losses, we must
remember that in the postwar period a devouring
pent-up demand for civilian goods will be unleashed;
that demand will be reinforced by an enormous
accumulation of individual savings*

ill things

considered, it seems safe to assume that the base
for charging postwar costs related to the war is
sufficiently large under the carry-back provisions*

Inadequacy of the carry-backs
¿>om

people say the carry-backs fail to

meet the problem of reconversion expenses.

Whether

or not the carry-backs are adequate to cushion the
effects of the cessation of war production depends
upon the amount of income serving as a base
against which reconversion expenses nay be charged.
The base provided by the carry-backs is the net
income before taxes of the two years preceding
the year of low income or deficit.

In 1943, net

inconie before taxes for all profitable corporations
is estimated at $22.8 billion./* If the war were to
terminate in 1945, and net income before taxes in
1944 were equal to net income in 1948, the carry­
back base would be equal to $45.6 billion.

-

26

~

Criticism of the carry-backs
So much for the philosophy underlying the
carry-backs#

Let us now consider some of the main

objections to them#

I think it is only fair to say

that much of the criticism of the carry-backs has
been due to misunderstanding and ignorance.
been a good deal of low visibility.

There has

This is less true

today than it was six months ago, but one still sees
numerous instances of misguided hostility#

It is

particularly important that business men, as well as
the public, should have an unclouded understanding
of the nature and the purpose of these provisions.
/ [ y

It is a basic tenet of our democracy that if enough
people have enough information on any issue, most of
them will exercise good judgment more often than not.
If business men misunderstand the carry-back
provisions, they may commit themselves to alternative
programs which from a self-interest viewpoint will
end up in far less satisfactory adjustments in the
reconversion period.

- 25 The carry-back adjustment embraces declines in
income in the reconversion period—

declines whose

primary cause may be very difficult to ascertain./^This
is the greatest strength, as well as the greatest weakness
of the carrybacks.

It is a strength because it makes

classification of postwar costs on the basis of their
relationship to war income unnecessary.

It Is a m k m s

because some expenses unrelated to the earnings of
wartime income may reduce wartime taxes.

T

Averaging income, however, is not the sole, nor
even the major, purpose of the carry-back provisions*
purpose is to provide a general method for
offsetting costs and losses suffered as a result of
reconversion against wartime.Income*

The record clearly

shows that the Congressional choice of the carry-lack
technique was based on inability to work out a satisfactory
method of deducting postwar expenses from wartime income
by the reserve method*

There is no specific deduction of

postwar war costs from wartime Income*
against income in the year Incurred.

They are charged
They reduce wartime

income, either directly or indirectly, only if income in
the postwar years is subnormal, or if losses are suffered.
If excess profits are earned in this reconversion period,
they automatically result in tax savings at wartime rates.

The averaging under which taxes paid on profits
of fat years are reduced by losses of lean years has
long been recognised as a major contribution to a more
equitable tax structure.

It is a recognition that

profits are best measured not by the year, but by
a longer unit of time.

These provisions accomplish an averaging of income*
liken the carry-tacks are combined with the two-year
carry-overs, enacted prior to the Revenue Act of 134£,

a five-year averaging period is set up for Industries
with fluctuating income#

-

21

*-

The Carry»Back Provisions
The carry-back provisions of the Revenue Act of
194E apply to b ^
excess-profits

*

ting losses and unused
taxpayers are permitted

to deduct losses from income earned in the two
preceding years; excess-profits taxpayers are allowed
to reduce excess profits earned in the two preceding
years when income falls below normal profits as
measured by the excess-profits credit.

-

20

-

I us® the words ^alternative* and ^prefer*
advisedly, because it is clear to ns that industry
cannot, and should not, have both solutions*
cannot play loth ends against the middle.
make & choice*

It

It must

- 19 ~
The ideal solution would be to deduct all war
costs directly from wartime income. - It is a curious
irony that what is professed to be a variation of
ideal solution is being presented on behalf of
industry, whereas we in the Treasury are supporting
what we think is a more practical alternative.

The

advocates of the reserve technique are trying to meet
the problem in one way.

Congress has met the problem

in another way.
zfytu

(tct ft

carryback provisions are the Congressional solution.
They are not a perfect solution, but perhaps on closer
examination most of industry will prefer them to the
reserve method.

I

-

18

-

Tax Aspects of Reconversion
Since the war star ted, the Covernaent has measured

Income and excess-profits taxes by income earned after
deducting costs Incurred durln^ the war period,

Tt has

not subtracted war costs which will not be Incurred
until the reconversion period although those costs are
equally valid offsets against wartime income.

Unless

these costs are subtracted from the base upon which
war taxes have been levied, an inequitable distribution
of the wartime tax burden will result.

The real problem

and one not new in tax law - is how to allocate those
postwar expenses to the income with which they are
connected.

- 17 •
Hot only mar contractors will face those prolijas.
Subcontractors will be obliged to mark time until their
customers put their plants in running order and swing
< \\> )

into peacetime production#)'/This waiting period may
call for expenditures for maintenance and personnel.
Our tax system should recognise the relationship of
many of these cases to wartime production.

16 -

In liquidating the m r economy there is also the
problem of sh iftin g a vast c iv ilia n army of workers
from a war to a peace basis*

Thousands of workers

In war industries w ill be forced to find other jobs*
I t w ill be d if f ic u lt , I f not impossible, to maintain
employment a t the war lev el after the war orders stop
rollin j.-'iifr^ So ae firms are planning to pay dismissal
wa$/s to workers who cannot be absorbed in their
/
piacetime a c t iv it ie s . Expenditures may be necessary
/even for retained workers and returning veterans,
many of whom w ill have to be retrained and taught new
s k ills *

Outlays may be necessary in some cases to hold

key employees in the reconversion period.

%
u

Ci

q

J

£

f

^

- 15 -

In some Industrial areas inventories of Victory
models may require replacement or réadaptation to markets
of plenty rather than scarcity.

Some firms engaged in

wartime production will have a subnormal volume of sales
which they will wish to stimulate.

Finns created to

produce war goods will wish to spend money to enter new
markets end develop new products.

- 14 Industry^ Reconversion Problems

In the tw ilight of tra n sitio n , industry w ill face
a variety of reconversion problems^)"Termination of war
contracts w ill lead to new a c tiv itie s which w ill oblige
outlays

and cut down income,

of oar economy is inevitable*
w ill have to be reconverted*

à period of dislocation
Foiae in d u strial plants
Some firms may wish to

rearrange and re h a b ilita te their plants and equipment
in order to return to prewar production or to compete in
postwar markets*

Others may wish to make maintenance

expenditures which they were forced to defer during the
war period because of manpower and material shortages
or continuous war production*

m

** 13 **
While we are still in the full flood of the war
we cannot know when reconversion will occur* We do
not know how much reconversion will be necessary*
will be totally unnecessary in

am®

It

industries. We

have no solid granite of fact on which to build. All
we have in our grip at the moment is the general
principle that certain costs to be incurred following
the cessation of hostilities will* from the standpoint
of correct accounting and fairness* be attributable to
war income*

A survey of postwar requirements of 100 war
contractors was recently conducted by the staff of
the Truman Cofflaittee.^ Senator Truman said:

"The

aost striking feature of t he replies is not the
amount of money which will be required nor t he
variety of purposes for which it will be required,
but the com plete uncertainty o f the contractors
themselves as to how much will be required and the
purpose for * i c h it will be needed."

-11

-

The term "war profits” is equally difficult to
define from the standpoint of timing* And therein lies
our present problem*

Profits are not earned without

expenses of production* hot all the expenses of apparent
war profits have yet been incurred* hot all are even
yet known* They are/not known because reconverting to
a peace economy is an item of war cost* Mo one can
make even reasonably precise estimates* 1# need
experience as a "book of wisdom** !e cannot profit by
its teachings until events have occurred.

• 10 »

But taxing war profits is not as simple as it
.V^ - y

seems*

,Wv

IÏ

Aar profits11 is an ambiguous tara* Tie

oannot isolate the origins of profits.

Some profits

would have piled up if there had been no war.

Some

profits derive from activity indirectly stimulated
I

by the high income levels of war* Some profits are
war profits, pure and unadulterated. Alii] of these
distinctions go to the point of origin*
HÉ

ui

I \

il
\t
t \

\ "\

-9 Taxing War Profits
In wartime it is important from the revenue
standpoint to see that a high tax is imposed on all
war profits*
standpoint*

But it is even more important from a morale
National unity is

JJ'

if large numbers

A

of citizens believe that war profits are not bearing their
fair share of war costs.

ahen we converted to war, industry's regular
trade channels were dammed up and production in
a large measure was diverted to the Government.
Government became the biggest buyer.

But when

we begin forging our swords back into ploughshares.
Government will step out of its stellar role as
purchaser.

It will turn back to industry the Job

of finding customers.
background«

It will move into the

The more responsibility industry takes

the more limited Government's role will be9

- 7 I should like a t the outset to set down some
major premises of discussion*

I take it as self«

evident that Government responsibilities will not
end with the cease firing order*

To save ourselves

we have put in motion economic forces that create
postwar problems*

We had to convert to war*

That

conversion produced unprecedented national incense,
unprecedented business activity, unprecedented
employment, unprecedented production, and unprecedented
taxes*

fe cannot set such forces in motion and walk

out on them*

fe cannot wind up the national economy

and throw away the key*

Government must do its part

to bridge the gap between a war economy and a peace
economy if we are to avoid depression and unemployment
when the war orders stop*

I hope I can *$# both aides of the question*
I am in the Government* Until & few years ago I was
closely associated with business*

I believe I understand

something of the business man's fears of what lies
ahead*

He sees the war economy heading into an area in

which the production curve will flatten out*

He wants

to avoid being caught between the upper millstone of
high taxes and the lower millstone of reduced profits*
He knows where he isf but not where he may be*

He

wants to create an atmosphere in which business can take

ciP

hold* "He wants to plan with the utmost possible
certainty for the day when our country will be the
warehouse, not the arsenal, of democracy*

-

6

-

Postwar Relationship Between Government and Industry
Sometimes a question has overtones in the sense
that it is premised upon the answer to another more
basic question«

The question before us this morning

i8> I think, of that type*

It goes to the heart of

one important aspect of the postwar relationship between
government and Industry. ;>A Government man cannot diaouss
the relative merits of carryback! and reserves for
reconversion without a clear idea of the part Government
should play in the postwar business world.

A business

man cannot discuss this issue without a well-delineated
mental image of the part industry muats Government to
play.

Does Government want to subsidise industry

through rebates of war taxes?
subsidised by Government?

Does industry want to be

Mr. Justice Frankfurter has widely remarked
that "the right answer depends on putting the
right question."

On the kind of question before

us this morning, I would go the learned Justice
one better.

1 believe that the right answer

depends upon the intellectual mood —
use a contradiction in terms —
question is asked.
open inquiry?

if I may

in which the

That is, is the mood one of

Do we want the right answer, or

do we want the answer that best fits our
preconceptions?

have we already made up our

minds, or are we in deep doubt?

Does the question

carry with it a sincere desire for enlightenment?

-A
■

- 3 Since Mr# Steaapf and I are approaching tax
problem* of the transition period from different
direction*, it is not surprising that we offer
different solutions#
from every angle.

The subject calls for light

The best solution will be the

one that gains acceptance in the competition of
the intellectual market after a vigorous free
trade in ideas.

i

£

- 2 -

1% hear much these days about postwar problems
and programs*

So much» in fact* that 1 am reminded

of a squib in a recent magazine in which a wife
called her husband to task for being the only
guest at a dinaar party without a postwar plan.

.

mm***

Taxation Problem« of the Transition Period
I am very glad to participate in the opening
session of this meeting of the American Management
Association*

And I speak for the Treasury when I say

that it appreciates this opportunity to present its
views along with those of industry on "Taxation
Problems of the Transition Period* **

TREASURY DBPARTMEMT
Washington
(The following address by Randolph I, Paul,
General Counsel of tbs Treasury, before the
Conference on Financial Management of the
American Management Association at the
Hotel Hew Yorker, Hew York City, is scheduled
for delivery at IQ$30 a, ia., Eastern War Time,
Wednesday, lforchT!r~IWC^ftn^iB'"fe3F‘re lease"*
at'fSai"%5£ ♦)

TREASURY DEPARTMENT
Washington
••

(The following address by Randolph E. Paul,.
General Counsel of the Treasury, before the
Conference on Financial Management of the
American Management Association at the
Hotel .New Yorker, New York City, is scheduled
for delivery ,at 10:30 a» m* ,■ Eastern War Time,
Wednesday, March 1, 194-4-» and is for release
at that time»)
~T^
•
TAXATION PROBLEMS OF .THE TRANSITION PERIOD

I am' very glad to participate in. the, opening session of this meeting
of the American Management Association, And I .speak for the Treasury when
I say that it appreciates this opportunity to.present its views along with
those of industry on "Taxation Problems of. the Transition Period*n
We hear much these days about postwar problems and programs* So much,
in fact, that I am reminded of a sauib in a recent magazine in which a wife
called her husband to task for being the only guest at a dinner party with­
out a postwar plan*
Since Mr. Stempf and I are approaching tax problems of the transition
period from different, directions, it is not surprising that we offer dif­
ferent solutions* The subject calls for.light from every angle. The best
solution m i l be the one that gains acceptance in the competition of the
intellectual market after a vigorous free trade in ideasf
Mr. Justice Frankfurter has wisely remarked that "the right answer
depends on putting the right question." On the kind of question before us
this morning, I would go the learned Justice one better. I believe that
the right answer depends upon the intellectual mood — if I may use a con­
tradiction in terms — in which the question is asked. That is, is the
mood one of open inquiry? Do we want the right answer, or do we want the
answer that best fits our preconceptions? Have we already made up our
minds, or are we in deep doubt? Does the question carry with it a sincere
desire for enlightenment?
Postwar Relationship Between Government and Industry
Sometimes a question has overtones in the sense that it is premised
upon the answer to another more basic question. The question before us
this morning is, I think, of that type.. It goes to the heart of one
important aspect of the postwar relationship between government and indus­
try. A Government man cannot discuss the relative merits of carrybacks
and reserves for reconversion vfithout a clear idea of the part Government
should play in the postwar business world* A business man cannot discuss
this issue without a well-delineated mental image of the part industry
wants Government to play. Does Government want to subsidize industry
through rebates of war taxes? Does industry want to be subsidized by
Government?

-

2

-

1
h ° p e
1
c a n
s e e
b o t h
s i d e s
o f
thG Q u e s t i o n .
I am in the Government,
until a few years.ago I was closely associated with business. I believe
I understand:something of the business m an’s fears of what lies ahead,
he^sees the war economy heading into an area in which the production curve
will flatteh out. He wants to avoid being caught between .the upper
millstone of high taxes and the lower millstone of reduced profits, He
knows where he is, but not where he m a y be. He wants to create an
atmosphere in.which business can take hold. He wants to plan with the
utmost possible certainty for.the day .when our country will be the
warehouse, not the arsenal, of democracy.

I should like at the, outset to set dov/n some major premises of
discussion. I take it as self-evident that Government responsibilities
end with the cease firing order.
To save ourselves we have put
m motion economic forces that create•postwar problems. We had to convert
to war. That conversion‘produced unprecedented'national income, un­
precedented business activity, unprecedented employment, unprecedented
production, and unprecedented taxes. We cannot set such forces in motion
and walk out on them. We cannot wind up the national economy and throw
away the key. Government must do its part to bridge the gap between a war
economy and a peace economy if we are;•to- avoid depression and unemployment
when the war orders stop,
When.w.e converted to war, industry’s regular trade channels were
ammed up and production in a large•measure was diverted to the Govern­
ment* Government, became the biggest buyer. . But'when we begin forging
our swords back into ploughshares, Government will step out of its stellar
role ,as purchaser* It will turn back to industry the job of finding
customers. ^It will move into the background. The more responsibility
industry takes, the more limited Government1s role will be,
Taxing War Profits ''
In wartime it is important from the revenue standpoint to see that
a high tax is imposed on all war profits. But it is even more important .
from a morale -standpoint. National uriity is threatened if large numbers
of citizens believe that war profits are not bearing their fair share of
war costs.
But taxing war profits, is not as simple, as it seems. «War profits11
is an ambiguous term. We cannot isolate the origins of profits. Some
profits would have piled up if there had been no war. Some profits derive
from activity indirectly stimulated by the high income levels of war.
Some profits are war profits, pure.and unadulterated. All of these
distinctions go to the point of origin.
The term "war profits" is equally difficult to define from the
standpoint of timing. And therein lies our present problem. Profits are
not earned without expenses of production. Not all the expenses of Apparant
war profits have yet been incurred. Not all are even yet knovtti. They are

~

3

-

not« known ’because reconverting to a peace economy is an item of war cost«
No one can make even reasonably précise estimates. We need experience
as a “book of wisdom»’1 We cannot profit by its teachings until events
have occurred*
-•
• •
A survey of postwar requirements of 100 war contractors was recently
conducted by the staff of the Truman Committee. Senator Truman said:
The most striking feature of the replies is not the amount of money which
will be required nor the variety of purposes for which it will be reciuired*
but the complete uncertainty of the contractors themselves as to how much
will be required and the purpose for which it will be needed."
ti/hile we are still in the full flood of the war we cannot know when
reconversion will occur. We do not know how much reconversion will be
necessary, It will be totally unnecessary in some industries, ,We have
no solid granite of fact on*?\ihich to build. All we have in our grip at
the moment is the»- general principle that certain costs .to be incurred
following the cessation of hostilities will* from the standpoint of correct
accounting and fairness* be attributable to war,income.
Industry1s Re conversion Problems
In the twilight of transition* industry will face a variety of
reconversion problems. Termination of war contracts will lead to new
activities which will oblige outlays and cut down inoome, A period of
dislocation of our economy is inevitable. Some industrial plants, will
have -to be reconverted. Some firms may wish to rearrange and rehabilitate
their plants and equipment in order to return ,to prewar production or to
compete in postwar markets. Others may wish to make maintenance expendi­
tures which they were forced to defer during the war period because of
manpower and material shortages or continuous war production.
In some industrial areas inventories of Victory models may require
replacement or réadaptation to markets of plenty rather than scarcity.
Some firms engaged in wartime production will have a subnormal volume of
sales which they will wish to stimulate. Firms created to produce war
goods will wish to spend money to enter new markets and develop new
products.
liquidating the war economy there is also the problem of shifting
a vast civilian army of workers from a war to a peace basis. Thousands of
workers in war industries-will be forced to find other jobs. It will be
difficult* if not impossible* to maintain employment at the war level after
the war orders stop rolling in. It should be the aim of all* however* to
keep employment at as high a level as possible. Some fizms are planning
to pay dismissal wages to workers who cannot be absorbed in their peace­
time activities, Expenditures may be necessary even for retained workers
and returning veterans* many of whom will have to be retrained and taught
new skills, Outlays may be necessary in some cases to hold key employees
in the reconversion period.

-\4 Not only war contractors will face these problem's* "Subcontractors
will be obliged to mark time until their customers- put their"plants in
running order and' swing into peacetime production. This waiting period
may call for expenditures for maintenance and personnel*': Our'tax
system should recognize the relationship of many of these cases to wartime
production.,
■
' : •" •*' ' • j*
Tax Aspects of Be conversion

•

''

Since the war started, the Government has measured income And excessprofits taxes by income earned after deducting costs incurred during the
war period. It has not subtracted war costs which will not be incurred
until the reconversion period although those posts are equally valid
offsets against wartime income. Unless these -costs are subtracted from
the base upon which war taxes have been levied, an inequitable distribution
of the wartime'tax burden will result. The real problem— and one;not new
in lax law - is how to allocate these postwar expenses to the income ’
with
which they are connected.
The ideal solution would be to deduct all war costs directly from
wartime income. It is a curious irony that what is professed to be
a variation of this ideal solution is being presented on behalf of
industry, whereas we Jin the Treasury are supporting what we think is
a more practical alternative. The advocates of the reserve technique are
trying to meet the problem in one way. Congress has met the problem in
another way. The carry-back -provisions of the Revenue Act of 1942 -are
the Congressional solution. They are hot a perfect solution, but perhaps
on closer examination most of industry will prefer them to the reserve
method.
•
I use the words "alternative” and "prefer" advisedly, because it is
clear to me that industry cannot, and should not, have both solutions.
It cannot play both ends against the middle. It must make a choice.
The Carry-Back Provisions
The carry-back provisions of the Revenue Act of 1942 apply to both
net operating losses and unused excess-profits credits. All taxpayers
are permitted to deduct losses from income earned in the two preceding
years^ excess—profits taxpayers are allowed to reduce excess profits
earned in the two preceding years when income falls below normal profits
as measured by the excess-profits credit;

These provisions accomplish an averaging of income. When the carry­
backs are combined with the two-year carry-overs, enacted prior to the
Revenue Act of 1942, a five-year averaging period is set up for industries
with fluctuating income.
•
The averaging under which taxes paid on profits of fat years are
reduced by losses of lean years has long been recognized as a major
contribution to a more equitable tax structure. It is a recognition that
profits are best measured not by the year, but by a longer unit of time.

- 5"-

'

Averaging, income, however* is not the so ley nor even the major*
purpose of the carry-back provisions, Their major‘purpose is to
provide a general- method for offsetting costs and losses suffered as
a result of reconversion against'•wartime income» 'The record clearly
shows that the Congressional choice of the carry—back' technique was
based on inability to‘
„work out a satisfactory method of deducting postwar
expenses from wartime income by the reserve method. 'There is no‘specific
deduction of postwar war costs‘from wartime income» They are charged
against income in the .year incurred» ‘ They reduce-wartime income* either
directly or indirectly* only if income in the postwar years is subnormal,
or if losses are suffered. If excess profits are earned in this recon­
version period* they automatically result in tax savings at wartime
rates,
# 9 Lw X
: 1-' ,
;
■
The carry—back adjustment embraces declines in income in.the recon­
version period - declines whose primary cause may be very difficult to
ascertain» This is the greatest strength* as well as the greatest
weakness* of the carry-backs. It.is a strength because it makes classi­
fication of postwar costs on the basis of their relationship to war income
unnecessary. It is a weakness because some expenses unrelated to the
earnings of wartime income may reduce wartime taxes.
Criticism of the carry-backs ' •
So much for the philosophy underlying the' carry-backs. Let us now
consider some of the main objections to them. • I think'it iis only fair to
say that much of the criticism of the carry-backs has been due ;to mis­
understanding and ignorance. There has been a'good deal of low visibility.
This is less true today than it was six months ago* but one still sees
numerous instances of misguided hostility* It is particularly important
that business men* as well'as the public*'. r
shou'ld have an unclouded under­
standing of the nature and the purpose of these provisions. It is a basic
tenet of our democracy that if enough people have enough information on any
issue* most of them will 'exercise good judgment more often than not. If
business men misunderstand the carry-back provisions, they may commit
themselves to alternative programs'which from a self-interest viewpoint
will end up in- far less satisfactory Adjustments in the reconversion
period.
• •
Inadequacy of the carry-backs
Some people say the carry-backs fail to meet the problem of reconversion
expenses. 1/Vhether or.not the carry-backs are adequate to cushion the effects
of the cessation of war production depends upon the amount of income Serving
as a base against which reconversion expenses may be charged.' The base
provided by the carry-backs is the net income before taxes of the two years
preceding the year of low income or deficit. In 1943 net income before
taxes for all profitable corporations is estimated at $22,8 billion. If.the
war were to terminate in 1945, and net income before taxes in 1944 were
equal to net income in 1943* the carry-back base would be equal to $45*6
billion*
,
:
■

•

6

-

Aggregate corporation deficits, in our worst depression year - 1932 amounted to only $8 billion* Unless we assume a long* chaotic reconversion
period, it seems...unlikely that postwar deficits will approach this figure,
"While reconversion may bring about substantial temporary losses, we must
remember that in the postwar period a devouring pent-up demand for
civilian goods will be unleashed; that demand will be reinforced by ah
enormous accumulation, of individual savings.; - All things considered, it
seems safe to assume that the base for charging postwar costs related to
the war is sufficiently large under .the carry-back provisions*
Reconversion costs must be incurred within a reasonably short period
after termination of war contracts. And by reasonably short, I mean
within a year or two* Those expenses directly related to wartime income
will generally be con tract od within that relatively brief time,-, It will'
be the extraordinary case where a gradual tapering off of war production,
combined with an inability to make any headway1in reconverting, will
substantially reduce the carry-back base of any one firm.
Improper Cost Allocation
Some people say that the carry-back provisions assign postwar .
■
expenses to the wrong year, They mean-that although certain postwar
expenses may be deducted from postwar income, those expenses may not find
their way back as offsets against war income* To this charge the
relatively crude carry-back adjustment must plead guilty. It is an overall,
not a specific, adjustment. Hère again, we may move from the ideal to the
practical; this charge is a serious condemnation of the carry-back pro­
visions only if their allocation of costs would result in an inequitable
tax adjustment.
In fact, it appears that failure to deduct expenses in the theoretically
correct year does no harm so long as tax rates remain the same in,the post­
war period. True, if tax rates go down it would make a good deal of
difference whether an expense is deducted from income taxed at. an 80 or
85 percent rate, or from income taxed at, say, a 4-0 percent rate, Firms
continuing to earn profits in excess of income or invested-capital credits
will not be affected by the carry-back provisions.
Those firms m i l receive
smaller tax reductions than they would obtain from a direct charge of
postwar costs against wartime income. ïÿhatever the inequity in this
situation may be, we must remember that the firms so penalized will be those
suffering least from the after effects of the war,
So far I have been talking about postwar expenses attributable to the
war. This is only one phase of the problem of allocating costs. The
carry-back provisions do not restrict themselves solely to costs and
losses directly related to the earning of wartime income; they allow
a carry-back to postwar costs which'have nothing to do with war income.
For example, a firm embarking on a postwar advertising program to establish
itself in a new market may deduct these costs from wartime income, even
though they should be charged against future income, Such a mis allocation
of costs may have serious effects,, if postwar tax rates are reduced, and
constitute a defect in the carry-back technique.

- 7 Danger of repeal
Some people object to the;;carry-back provisions on the ground that
they may be repealed at the very time when they are most needed. This
criticism obviously rests on the assumption that the commitments made by
the 77th Congress are not firm. The carry-back provisions admittedly
differ from most other tax provisions in that their^effect on current tax
yields may be delayed two or. even more years. Howdver, since they were
enacted in lieu.of reserve adjustments, and in.full recognition of their
importance in achieving a correct statement of wartime taxable income,
I cannot believe that thetpossibility o.f their repeal is as great as some
• pessimists imagine.
Of course, the life expectancy of the carry-back provisions like the
life span of other provisions of the tax law, may depend upon whether they
are used or abused. In tax law, as in life, one. may'bite the hand that
feeds him. If it becomes apparent, •that’large refunds of wartime taxes are
resulting from inflated costs or losses, the possibility of repeal mall be
enhanced. There have been attempts to “sell11 these provisions to industry,
with the plea that it can use the carry-backs to finance postwar expendi­
tures for expansion and growth. In effect, a subsidy program is being
urged for industry in the guise of tax relief. I hope that industry will
resist the smooth-tongued salesmen; „mho .peddle such spurious goods.
I

Failure to provide working capital
Other people say the carry-backs fail to provide the necessary liquid
funds to make reconversion and other similar postwar expenditures, They
claim that delay in the payment of tax refunds, resulting from the carry­
back provisions, vail neutralize their inherent benefits. They believe
that the refunds would do no more than lock the stable after the horse
is stolen.
Corporations generally file their tax returns on March 15th after
the close of their business year, and pay their taxes in quarterly install­
ments throughout the year. This means that in a year of losses corpora­
tions must continue p'aying their taxes for the previous year even though
losses in the current year, clearly indicate reduction o'f liability or,
•• indeed, absence of liability. What could be more ridiculous than paying
off liabilities that do not exist when liabilities that do exist are
pounding at the door?
♦

*

It was to rectify this weakness of the carry-back adjustment that the
Treasury proposed to the Congressional tax committees last year that pro­
vision be made for speeding up the carry-back refunds. The Treasury pro­
posed that a tentative claim could be^filed when a taxpayer estimated that
a loss would be incurred, or income would fall below the excess-profits
credit. On the basis of an estimate of income o r ’loss for the year, the
tax refund would then be quickly computed. The Treasury proposed that
this estimated refund could be applied as an offset to tax*installments
owing for the balance of the yearf

On the following March a regular tax return would present the actual
income Or deficit bf 'the- taxpayer with a precise computation of the-actual
tax rêfund. ! if' the’-corporation had underestimate^' its 'income.-and, there­
fore, postponed1tooùmieil tax, it. would be required;to pay the'deficiency.
If it had erred on the 'conservative,side..and.postponed too little tax, an
additional tax;refund :.within the shortest reasonable period, say 60 to 90
days, would' be;madëi " - \
••
* i-1.■
I
This adjustment' would immediately free the; cash or securities held
to meet quarterly tax payments, and would substantially mitigate wo'rkingcapital shortages in the reconversion period* It would not grant corpora­
tions anything to which they are not now entitled by law* It would merely
providers' mechanism’‘fô^ expediting-payments of .-refunds* ...
A similar proposal was not'made, for partnerships and' proprietorships.
This, was not "through oversight, or through any desire on the part Of the
Treasury to-.favor the corporate form* Rather, it,was; because partnerships
and prqpriëtorships were put on a current basis by the Current Tax Payment
Act of 1943*. In a year of loss partnerships.and proprietorships' will
base their tax payments for that year on the estimated loss, and not on
the income earned in the.preceding year*
Alternative proposals to the carry-backs

So much for the arguments for and against the carry-back provisions.
IThat are the alternatives?
..Specific reserves' {

'

-

One alternative is the specific reserve technique. 'Under this method
a specific reserve is taken out of wartime income with the idea of charg­
ing against it postwar costs directly related to wartime.income. Any
upused portion of thé reserve^ after a specified period, would be returned
to wartime income*
In theory this approach is sounder* and more direct than the carry­
back approach. Under ideal conditions a specific reserve can result in
a correct tax'adjustment for postwar posts. The amount of income in the
war and in the postwar period and postwar tax rates make no difference.

But taxation is an intensely practical matter and, in practice, the
story is different* The specific reserve technique brings serious admin­
istrative problems. In the majority of cases I venture that it would
result in a less satisfactory adjustment than the carry-back provisions.
There, is first the difficulty of estimating what is ultimately to
be charged against the reserve. In many cases there is no basis ior ap­
proximate estimate. To resolve this difficulty, advocates of special
reserves have suggested an arbitrary overall limit on the »annual reserve
deduction.

This limit, usually, based on net income, represents a break with
the -principle of. the ideal allocation of costs* '
-Limitations are crude
instruments. They are likely to be too high for some firms and too
low for others* Only in the extraordinary case would the ideal alloca­
tion of postwar costs to wartime income equal the amount of the reserve
deduction in that year. Nor is it likely in most cases that aggregate
postwar expenses chargeable against the1 reserve'will match the amounts
set aside in earlier years of ignorance.
The second difficulty is how to determine the amount of postwar
costs to be charged against the specific reserve. If the principle
underlying trhe specific reserve method were rigidly followed, every
item of expense charged against the reserve would require an adminis- ■
trative determination of appropriateness, ' This determination would be
laborious, and in many instances as complex as a Section 722 determination
Moreover, the reserve might be extended to cover many, expenditures
•not properly deductible from wartime income, Unless the limit on the
reserve were placed so low ns to create real hardship, it would exceed
the needs of .the majority of taxpayers. It is only natural that the tax­
payer will develop a proprietary interest in his reserves. He would not
be human if he did not seek to Have the provisions broadened; he would
be a superman who ranked very little, below God and the angels if he were
willing to see funds returned to wartime income and taxed at wartime rates
The Hatch plan

Under a plan proposed‘by Senator Hatch a reserve would be set up
.in the same way as under the specific reserve plan. But instead of at­
tempting to charge particular postwar costs against this reserve, the
entire reserve would be added to postwar income. In other words, ah
arbitrary percentage of wartime income (say, 15 to 20«percent) would be
•treated as postwar income, regardless of whether or not a firm was
actually incurring reconversion costs or suffering a decline in income.
To the extent that this shift in income is matched by postwar costs
or losses related to the war, the effect of the-Hatch plan would be
similar to the effect of the specific reserve plan. These postwar ex­
penses would cancel the additional postwar income, However, to the ex­
tent shifts in income under this method exceeded or fell short of these
costs and losses an inappropriate adjustment would result.
If we look at the carry-back provisions from the same standpoint,
we see that they can shift, up to 100 percent of twrc> years’ war income
into the postwar period. This may look like sleight-of-hand; but it is
actually the way the carry-back provisions can operate for firms m t h
low postwar income or a deficit. Take notice, however, that they apply
only when income is sharply reduced, or when losses are suffered.

-

10

-

Three major advantages have been claimed by the advocates of the
Hatch plan: first,, that it is administratively simple; .second, that
it grants the greatest benefits to firms facing the most serious
reconversion problems; and third, that it provides cash with which to
meet reconversion expenditures.
_
I cannot deny that this adjustment, foh reconversion costs, is the
; simplest that could be made. However, it is not. true, that the greatest
benefits m i l go to firms' suffering postwar losses. Those firms will be
in as good a position under this method as under the.carry-backs, only
if their losses are less than 20 percent of the wartime income they
earned in the period in which they set up the reserve. If their losses
are more than 20 percent, fhe Hatch plan will leave the firms in- a worse
position than the carry-backs would leave them.
If postwar'tax rates should be reduced, many firms not faced with
reconversion problems would secure undeserved tax benefits from the
Hatch plan. These benefits would take the form of a deduction from
wartime income otherwise taxed at, say, BO percent and the inclusion
of this amount in postwar income taxed at, say, 40 percent. Under
these assumptions a 40 or 50 percent profit could, in effect, be
earned on each dollar in the reserve. The firms benefiting would be
those m t h high postwar income and least in need of generous tax treat­
ment. To those who had, more would, be given.
Upon analysis the Hatch plan, as compared with the carry-back
plan, provides the least adequate adjustment for the firm suffering
the most serious reconversion problems*. It would make an adjustment
similar to the carry-backs for firms facing moderate reconversion
problems. To firms facing no reconversion problem and making high
postwar profits, it would grant substantial windfalls, if tax rates
are reduced. In substance the Hatch plan is a crude and haphazard
application of the idea embodied in the specific reserve approach.
*

Unrestricted Reserve

••

Still another alternative to the carry-backs provides postwar
reserves by allowing firms to deduct,'say, 10 or 15 percent of their
wartime income without any return of the funds to taxable Income in
the postwar years when they are used. This reserve plan is a plain,
unvarnished method of reducing wartime taxes. Its advocates cannot
urge this reserve upon the assumption that wartime income wras in part
illusory. Whether they say so or not, they predicate the need for
the reserve upon the assumption that corporation taxes are too high
to permit post-war expansion and growth, and the re-employment of re­
turning veterans.
I

- il -

I do not believe that the facts support the charge that wartime
corporation:.taxes, have been too high for industry as a whole. It would
be hard.,-to prove that they, have cut down industry’s ability to finance
necessaryppstwar outlays. In 1937 corporations'had left.less than
$4 billion after paying &U1/4 billion .of taxes. In 1943 corporations
m i l have left nearly $9.2 billion,--even after paying $13.5 billion of
taxes. In 1944.corporate profits after taxes are expected to reach
$9*9 billion, or three times the. average annual profits after taxes
in the period from 1936 through 1939. Moreover, it is estimated that
even after paying taxes- and dividends, American corporations will accu­
mulate over $12 billion of undistributed profits for.the three years

1941; 1942, and 1943..
The proponents of this unrestricted reserve plan are really asking
the Government to subsidise a portion of industry’s postwar expenses.
.They justify their attitude by dwelling upon the responsibility of
Government, for maintaining a. .high level of postwar employment. Yet
deductible reserves do not.appear to provide a proper instrument for
the discharge of this responsibility, particularly if they.would most
benefit corporations which have reaped the greatest rewards from the
war, if it is appropriate for the Government to subsidize private
industry during the transition period, the firms which have profited
least from the wartime expenditures of the Government would seem to
have the better claim. Certainly it is doubtful whether the Govern­
ment should encourage the. postwar expansion of the very industries
which have expanded mpst in wartime. Our peacetime requirements
Yd.ll call not for. more, shipyards and munition plants, but rather for
more civilian g o o d s , f o r the kind of goods which have suffered sharp
production cuts during the war years.

Conclusion

**

I have referred to industry this’morning in the aggregate. In
doing so I may have implied, that industry presents a united front
for reserves and against tlyw.carry-back provisions. . Words are tick­
lish things that play, tricks on those who use them as well as those
Y7ho hear them. Such an. inference could not be farther from the truth.
As we move from, the general to the specific, it is plain to see
that reserves and carry-backs affect different industries in different
wjays. Between the two, one industry’s meat may be another industry’s
poison; and even among reserve plans, one industry’s gain may far ex­
ceed another’s.

-

12

-

Government mighty therefore, sit on the sidelines and leave it
to industry to settle its own interna.l warfare and bring forward
its own solution« But since Government must bear the responsibility
for a high level of postwar production and employment, it cannot be
neutral on the question of reconversion costs« It cannot afford
a hands-off policy« It must see to it that the best feasible settle­
ment is secured -— a settlement made in the public interest and not
in the Special interest-of any one group within industry«.

Whether we like it or not, Government (and by Government I mean
the people) has become a partner in industry1s reconversion costs
and losses under the carry-back adjustments« In dollars aid cents
terms, we might say that Government will be the senior partner for
wartime excess-profits taxpayers with responsibility for 81 percent
of their losses* We might also say that it will be ’at least an im­
portant junior partner of other income taxpayers with the respon­
sibility for sharing 4.0 percent of thc-ir losses. Let us consider
just one example. A large producer of basic metal will secure
$4-7 million in refunds from the Government if its net income for
tax purposes in the reconversion period goes down to zero. This
refund compares with an average net income after taxes from 1936
to 1939 of $4-5 million.
Government has always been interested in industry1s profits,
but now; it is deeply concerned also with industry’s losses* With
Government sharing those losses, industry can maintain a high level
of production and employment wdth a smaller stake. Therefore,
labor will hold enormous odds against unemployment even in the face
of a possible depression.
On the other hand, some of the costs of the reconversion period
will be unrelated to the war period and unimportant in maintaining
a high level of employment. It is, therefore, to the mutual interest
of Government and industry to investigate the character of those recon­
version outlays« It may be necessary to circumscribe their tax de­
ductibility in order to prevent abuse« For the American people should
not be asked to grant industry a blank check, even though it promises
the most circumspect postwar behavior. Nor should the w;ay be loft
open for anyone to deprive all industry of an important means of
cushioning the jolts of the transition period.

oOo

Comparison of principal items of assets and ^Liabilities o^ national banks — continued
(In thousands of dollars) /
¡Deo. 31,
: i9>+3
•
LIABILITIES
Deposits of individuals, partner­
ships and corporations:
Demand.............. .
Time...........................
Postal Savings deposits.............
Deposits of U. S. Government.... .
Deposits of States and political
subdivisions......................
Deposits of banks................ .
Other deposits (certified and
cashiers1 checks, etc.)..... ......
Total deposits...............
Bills payable, rediscounts & other
liabilities for borrowed money....,
Other liabilities...................
Total liabilities, excluding
capital accounts............
CAPITAL ACCOWDS
Capital stock:
Preferred stock...................
Common stock..................... .
Total................. .........
Surplus..........................
Undivided profits............. ......
Reserves............................
Total surplus, profits, and
reserves.......................
Total capital accounts.........
Total liabilities and
_____ capital accounts.... ...........
Ratio of loans to total deposits....
ROTE;

Minus sign denotes decrease

J
f

$33.25*+.837
9 .9 2 6 ,2 5 9
5.782

2.93*+.65^
7 .1 6 0 ,1 3 3

•r, „
oct. is , ; D©c • 3l
1 9 U3
: iqkp
•

9

• Increase or decrease
,
j
* since Oct. 1 8 , 1 9 I+3
: Amount
: Percent

$3 0 ,9 0 1 ,3 2 3 $26,730»691 $2,353.51^
S.307.519
1+21+,880
9 ,5 0 1 ,3 7 9
6 ,13 1+
9.073
-352
1 0 ,31+7 ,0 5 3
!+»833»i09 -*+,9 0 1,7 0 7
2 ,6 0 3 ,88!+
7 ,3 1 3 .7 6 3

2 .6 9 5 .191+
7 ,1+0 1 ,531+

929.170

6 1 3 ,5 1 9

6 0 ,1 5 6 , 1 8 1

6 1 ,7 8 7 ,0 5 5

8.155
1+08,139

3 6 ,7 1 8
1+11+.61+1

6 0 ,5 7 2 ,1+75

6 2 ,2 3 8 ,HlU

1 2 7 ,60U
1,^03,911
1,531.515
1,619,769'
5l*l »595
2 6 6 ,5 6 3

1 3 2 ,1 2 6
1 ,361+.329
1,1+96,1+55
1 .5 1 0 .7 3 7
6 3 5 .8 3 9
2 7 5 .5 3 9

11+6 ,01+7
1.357.635
1,503.682
1 .1+3 8 .61+5
51*0 ,52!+
255.5°l+

2,1+27,927
3 »959.^ 2

2 ,1+2 2 , 1 1 5
3 ,9 18 ,5 7 0

2.231+.673
3.738,355

6*1 .5 3 1 . 9 1 7
1 6 .85^

6 6 ,1 5 6 ,981+
1 7 .1+1$

6 7 1,6 9 6

3 3 0 .7 7 0
-15 3 ,6 3 0
3 1 5 ,6 5 1

7 .6 2
k .k j

-5 .7*+
-1+5 .1 9
1 2 .7 0
-2 . 1 0

Page 1+

: Increase or decrease
* since Dec-. 31» 191+2
: Amount
: Percent

$6,52i+,ll+6
1 ,6 1 8 ,71+0
-3 .2 9 1
1 ,1 1 2 , 2 3 7

21+.1+1
19.1+9
-36.27
2 3 .0 1

2 3 9 ,1+60
-2 U1 ,1+01

8 .8 8
-3 .2 6

257.1+71*

38.33

51.^5
-2.61+

9 ,5 0 7 ,3 6 5

18.77

-2 8 ,5 6 3
-6 ,5 0 2

-77.79
-1.57

*+.639
17.81+8

1 3 1 .SU
1+.57

5 1 ,01+2 ,6 2 3 -1 ,66 5,9 39

-2 .6s

9,529.852

1 8 .6 7

-i+,522
39.582
35.060
10 9 .0 3 2
-91+,21+U
-8,976

-3.1+2
2.90
- 2 .3!+
7 .2 2
-11+ .8 2
-3 .2 6

-18,1+1+3
1+6 ,2 7 6
2 7 ,8 3 3
1 8 1 ,12 1+
1 ,0 7 1
1 1 ,0 5 9

-1 2 . 6 3
3 .1+1
1 .8 5
12.59
.2 0
^•33

5,812
*+0 ,8 7 2

.21+
“ l.OU

1 9 3 ,25!+
2 2 1 ,0 8 7

8 .6 5
5.91

5!+,7 8 0 ,9 78 -1 ,6 2 5 ,0 6 7
20. l k f i

-2 .1+6

5 0 ,61+8 ,8 1 6 -1 ,6 3 0 ,871+
■3 . 5 1 6
3 9 0 ,2 9 1

9 .75 0 .9 3 9

1 7 .8 0

Page 3

Statement showing comparison of principal items of assets and l i a b i l i t i e s of active national hanks
as of December 31» 19*43» October IS, 19*43» ancl December 31». 19*42
(In thousands of dollars)
Dec. 31,
19**3
Humber of banks.................
ASSETS
Loans on real estate.............
Other loans, including overdrafts..
Total loans...................
U. S. Government securities:
Direct obligations......... .
Obligations fully guaranteed....
Total U. S. securities........
Obligations of States and political
subdivisions...................
Other bonds, notes and debentures..
Corporate stocks, including stocks
of Federal Reserve Banks........
Total investments............
Total loans and investments....
Currency and coin...............
Reserve with Federal Reserve Banks.
Balances with other banks..... ..
Total cash, balances with other
banks, including reserve bal
ances and cash items in process
of collection......... ......
Other assets....................
Total assets.... ..... ......

: Oct. IS,
19**3
:

5,0*46

: Dec. 31»
19**2

5.058

$2 ,0 7 0 ,828)
S,062.70U) $10,775,316
I0.775.3l6
10,133.532
3 2 ,55 2 .251)
1 ,626,30*0
3**,178,555

(22,261,1*10)
( 1,563.9>*l) -1,531.259
35.709.815“ 2 3 ,8 2 5,351 -1,531.259
1 ,98**,169
1 ,266.527

1*4-9,061

1*45,811
3 9 .10 6 ,321
“ 1*9,881,637

6 ,9 13.> * 21

16,080,66*4
gl3,*ré~g~"
6**,5 3 1 ,9 1 7

($2 ,1 8 7 ,26**)
-$6*+i,78*+ -5.96
( 8 ,0 1 3 ,53**)
- 6*11,72*4 -5.96
10,200,792

35,709.81**

1 ,9 3 3 .1 0 7
1,2*0. **50

37,50**,253
>*7.637,785
807,969
8,359.27**

5,087

:Increase or decrease{Increase or decrease
:since Oct. 18, 19*4-3 :since Dec. 31» 19*4-2
: Amount : Percent : Amount : Percent
-*41
-.81
-.2*4
-1 2

8 7 3 ,0 6 7

7,876.313
6,733,858

15,*^3,23S

852,109
66,15 6 ,9^*4-

2,022,*4-93
1, *4*4-1,IgU

-50,982
-2 3 ,0 77

-*+.29
-**.29
-2.57
-1.82

2.23
3.250
19 3.76 0
27, *4-82,788 -1 ,602,06% -*4.10
37,683,586 "-2 ,2*43,852"“^ . 5 0
“5.098
733, **99
-.63
*4-82,961
6.13
8,2**9,513
2.67
7.267,258
179,563

1 6 ,250,270
8*17,122
5**,78 0,978

6 5 7 ,*426
-38,6*41
-1 ,625,067

*4.26
-**.53
-2. *46

(-$1 1 6 ,1*36
(
**9 ,170
-67,266

-5.32
.61
-.66

(1 0 ,290,81*1 *46.23
(
62,363
3.9 9
*
+
3
.4 5
10,353.20**
-89,306 -*+.*+2
-197.73** -I3 .7 2
*■**!*,699
1 0 ,0 2 1,1+65
9,95**,199
7**,**70
10 9 ,761
-353.837

-2 3 .O7
3 6 .1*6
26. *42
1 0 .1 5
1.33
-*4.87

-l69,606 -1.0*4
-33,651* -3.97
9,750,939 17.80

-

2

-

Cash of $808,000,000, balances with other banks, excluding reciprocal balances,
of $6,91^,000,000, and reserveswith Federal Reserve banks of $8,359»000»000, a total
of $16,081,000,000, increased $657,000,000 since October, but decreased $170,000,000
since December 19^2.
The unimpaired capital stock of the banks was $1,531*000,000, including
$127,000,000 preferred stock.

Surplus of $1,620,000,000, undivided p ro fits of

$5^2, 000,000 and reserves of $266, 000, 000, a to ta l of $2,^28,000,000, increased
$6,000,000 since October and $193,000,000 since December I 9U2 .

Total capital funds

of $3,959,000,000 were $^1,000,000 more than in October, and $221,000,000 more'than
in December of the previous year.
The percentage of loans and discounts to to ta l deposits on December 31» 19^3*
was 16. 85» in comparison with 17*kU on October 18, 19^3» &n<l 20.1^ on December 31»
1 9 ^2 .

TREASURY DEPARTMENT
Washington
Ck
^

Press Service
' t

</?

No*

*/o

~ ?

The assets of national hanks on December y i la s t totaled $6U,532»OOO,000, i t
was announced today by Comptroller of the Currency Preston Delano,

Returns from

the c a ll covered 5*0^6 active national banks in the United States and possessions.
The assets reported were $1,625,000,000 le ss than those reported by the 5*058 nation­
al banks on October IS, 19^3* the date of the previous c a ll, but showed an increase
of nearly $10,000,000,000 over the amount reported by the 5*087 active banks on De­
cember 3 1 » 19^2.
The deposits of national banks on December 3 1 » 19^3» totaled $60,156,000,000,
a decrease of $1,631,000,000 since October, but an increase of $9,507*000,000 since
December 19H2.

Included in the current deposit figures are demand and time deposits

of individuals, partnerships and corporations of $33, 255*000,000 and $9 , 926,000, 000,
respectively; United States Government deposits of $5*9^5*000,000; deposits of States
and p o litic a l subdivisions of $2, 935, 000, 000; postal savings of $6 ,000, 000; c e r ti­
fied and cashiers* checks, e t c ,, of $929, 000, 000, and deposits of banks, excluding
reciprocal balances, of $7 , 160, 000, 000.
Loans and discounts were $10,13^,000,000, a decrease of $6^2,000,000 since
October and a decrease of $67,000,000 since December 19^2.
Investments by the banks in United States Government obligations, d irect and
guaranteed, as of December 31* 19^3* aggregated $3^,178,000,000, a decrease of
$1,531*000,000 since October, but an increase of $10,353*0^*000 since December of
the year previous.

The d irect and indirect obligations held on December 31 la s t

were $32,552,000,000 and $1,626,000,000, respectively.

Other bonds, stocks and se­

c u ritie s held totalin g $3*326,000,000, including obligations of States and p o liti­
cal subdivisions of $1,933*000,000, showed a decrease since October of $71,000,000
and a decrease since December of the year previous of $332,000,000.

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 29, 1944______

Press Service
No. 40-90

The assets of national banks on December 31 last totaled
$64,532,000,000, it was announced today by Comptroller of the
Currency Preston Delano.
Returns from the call covered 5,046
active national banks in the United States and possessions.
The assets reported were $1,625,000,000 less than those
reported by the 5,058 national banks on October 18, 1943, the
date of the previous call, but showed an increase of nearly
$10,000,000,000 over the amount reported by the 5,087 active
banks on December 31, 1942.
The deposits of national banks on December 31, 1943, totaled
Sj>60,156,000,000, a decrease of $1,631,000,000 since October, but
an increase of $9,507,000,000 since December 1942.
Included in
the current deposit figures are demand and time deposits of
individuals, partnerships and corporations of $33, 2 5 5 ,0 0 0 , 0 0 0
and 89,926,000,000, respectively; United States Government
deposits of $5,945,000,000; deposits of States and political
subdivisions of $2,935,000,000; postal savings of $6,000,000;
certified and cashiers’ checks, etc., of $929,000,000, and
deposits of banks, excluding reciprocal balances, of
$ 7,160,000,000, ;
Loans and discounts were $10,134,000,000, a decrease of
$642,000,000 since October and a decrease of $67,000,000 since
December 1942,
Investments by the banks in United States Government
obligations, direct and guaranteed, as of December 31, 1943,
aggregated $34,178,000,000, a decrease of $1,531,000,000 since
October, but an increase of $10,353,000,000 since December of
the year previous,
The direct and indirect obligations held
on December 31 last were $32,552,000,000 and $1,626,000,000,
respectively,
Othersbonds, stocks and securities held totaling
$3,326,000,000, including obligations of States and political
subdivisions of $1,933,000,000, showed a decrease since October
of $71,000,000 and a decrease since December of the year nrevious
of $332,000,000.
F
Cash of $808,000,000, balances with other banks, excluding
reciprocal balances, of $6,914,000,000, and reserves with
Federal Reserve banks of $8,359,000,000, a total of
$16,081,000,000, increased $657,000,000 since October
, but
decreased $170,000,000 since December 1942.

2
The unimpaired capital stock of the banks was $1,531,000,000,
including $127,000,000 preferred stock.
Surplus of $1,620,000,000
undivided profits of $542,000,000 and reserves of $266,000,000,
a total of $2,428,000,000, increased $6,000,000 since October
and 4?193,000,000 since December 1942.
Total capital funds of
$p*953,000,000 were $41,000,000 more than in October, and
$221,000,000 more than in December of the previous year.
The percentage of loans and discounts to total deposits on
December 31, 1943* was 16.85, in comparison with 17,44 on
October 18, 1943, and 20,14 on December 31, 1942.

oOo

Page 3
Statement showing comparison of principal items of assets and liabilities of active national banks
as of December 31, 1943, October IS,. 1943,- and December 3 1 , 1942
(in thousands of dollars)
3>ec. 3 1 ,
19U3
Number of banks___ .. .. . ..........
ASSETS
Loans on real estate............. .
Other loans, including overdrafts..
Total loans............... . — ..
U. S. Government securities:
Direct obligations..............
Obligations fully guaranteed...-»
.Total U. S. securities....... .
Obligations of States and political
subdivisions..... ...............
Other bonds, notes and debentures..
Corporate stocks, including stocks
of federal Reserve Banks.........
Total investments..... ........
Total loans and investments....
Currency: and coin.................
Reserve with Federal Reserve Banks.
Balances with other banks.........
Total cash, balances with other
banks, including reserve bal­
ances and cash items in process
of collection.................
Other assets............. .........
Total assets..................

5,046
$2,070,323)
3,062,704)
10,133,532

3 2 .552 .25 n
1 ,626 ,30 ^)
34 ,173 ,5 5 5

;
:

Oct. 13,

1943
5,053
$1 0 ,77 5 ,3 1 6
10,775,316

35.709,814
35.709.a4

:. Dec..31,
r
1942
5,037

:Increase or decrease :Increase or decrease
rsince Oct. 13, 1943 rsince Dec. 31» 19^2
Amount : Percent : Amount - Percent
-12
-.24
-4l
-.31

($2,187,264)
( 8,013,534)
10,200,793

-$641,734

-5.96

- 641,734

-5.96

(22,261,410)
( 1,563,941) -1.531,259
23,825,351 “1,531,259

-4.29

1 ,9 3 3 ,1 3 7
1 ,243,450

1,934,169
.1 ,266,527

2,022,493
1,441,134

-50,962
-23,077

149,061
37.5C4.253
47,637.735
6O 7.969
8,359,274
6,913,421

145,311
39,106,321
49,331,637
3 I 37 O 67
7,676,313
6,733,858

193,760
27,432,733
37,683,536
733,499
8 ,249,513
7,267,253

3,250
-1 ,602 ,06 S
-2,243,852
-5,096
432,961

16,030,664
313.463
64 ,53 1,9 17

15,423,238
352,109
66,156,934

16,250,270
347,122
54,780,978

-4.29
-2.57
-1.32
2.23’
-4-10
-4-50

--6 3
6.13

179 ,56 3

2.67

657,426
-33,641
- 1 ,625,067

4.26
-4 .5 3
-2.46

(-$116 ,4 36
(
4 9,170
- 67,266

-5,32
Si
-. 66

(10,290,341
(
62,363
10,353,204

46.23
3-99
43-45

-39,306

-4-42
-197,73u -15-72.
-44, 699 -2 3.0 7
10,021,465 36 .t m
9 ,954,199 26.42
74,470 IO .15
I .3 3
109,761
-353,337 -4.37

-169,606
-33,654
9,750,939

-1.04
-3.97
17-30

Page U

Comparison of principal items of assets and l i a b i l i t i e s of national banks continued
( In thousands of dollars)

LIABILITIES
Deposits of individuals, partner­
ships and corporations:
Demand. ............................ ..
Time............................................ .
Postal Savings deposits.......... ...... ..
Deposits of U. S. Government*........
Deposits of States and p o litic a l
subdivisions........ .............................
Deposits of "banks*...*................ „ ...
Other deposits (c e rtifie d and
cashiers* checks, e t c . ) . . . . . . . . .
Total d ep osits.. . . . . . . . . . . .
B ills payable, rediscounts & other
l i a b i l i t i e s for borrowed money..
Other l i a b i l i t i e s . .................. ..... . . .
Total l i a b i l i t i e s , excluding
capi t al account s . . . . . . . . . . . . .
CAPITAL ACCOUNTS
Capital stock:
Preferred sto ck ............................. ..
Common sto ck .. . . . . . . . . . . . . . . . . . .
Total........ .
Surplus. . . . . . . . . . . . . . . . . . . . . . .
..
Undivided p r o f its ..
Reserves..................................................
Total surplus, p ro fits, and
reserves........................* ...........
Total capital accounts..........
Total l i a b i l i t i e s and
capital accounts............ ....... .
Ratio of loans to total deposits..
NOTE: Minus sign denotes decres.se.

: Dec. 3 1 , : Oct. 18,
:
19U3
:
19^3
•
:

$3 3 . 25^.337
9 .926,259
5.732
5.9U5.3U6
2. 93U, 651*
7 , 160.133

:
:
:

r Increase or decrease
: since Oct. IS , 1943
:
Amount : Percent

$30, 901,323 $26, 730,691 $2,353,5iU
7.62
9 , 501,379
U2U, 880
HJ+7
8, 307,519
6, 131+
9,073
-352
- 5 . 7H
10, 31+7,053
i+,S33,io9 -U,901,707 -H5.19
2, 603, 331+
? . 313.763

929,170
60, 156rlS l

& 3.519
61,737,055

a, 155
H08,13§

36 ,7 1 s
j^%,SHi

6o.372.U75

Dec. 31,
19H2

62, 23a , t o

2, 695, 191+
7 , 1+01, 531+

v* Increase or decrease
: since Dec. 31. 19H2
:
Amount • I v i L v i i u

$6, 52H,i U6
1,618,7*4)
- 3,291
1 , 112,237

2H.U1
19. U9
- 36.27
23.01

330,770
- 153.630

12.70
-2.10

239,460
“2Hl,l+01

8.88
“3*26

671,696
315,651
50,648,816 -1,630,S7U

51.45
“2.-64

257,H7H
9, 507,365

38.33
18.77

3,516
390,291

- 28,563
- 6,502

-77.79
- I .57

5 1 , 01+2,623 - 1 , 665,939

- 2.68

U.639
131. 9H
R? .
1 7 , 8H8 ____LrP.f
9,529,352

I 8.67

127,60U
1,1+03,911
1, 531r515
1 , 619,769
5U1 ,595
266,563

132,126
1,361+, 329
1.H96.H55
1,510,737
635,239
275,539

i 46, o47
1,357,635
1 RO"3; 68p
1,1+38,61+5
51+0 , 521+
255,501+

-U.522
- 3 .U2
39,582
2,90
0 ili
n&n
J■zJp;, U
ou
c.
109,032
7*22
- 9U.2UU -lH.82
- 8,976
“3.26

“18,443
- 12.63
H6,276 •:..3 .U1
1 .85
27,333
131,12H
12.59
.20
1,071
11,059 --- ---H.334T

2. 1+27.927
3,959,UU2

2,H22,115
3,918,570

2.23U.673
3r73a,355

5,312
'Ho,872

193, 25H
221,087

61+.531.917
16.85$

66,156,98H
1 7. Wo

5u .7 so.973 - 1 , 625,067
20.14$

. 2H
~ 1.04
- 2.H6

9,750,939

8.65
5. 9I
1 7. 80

Harold N. Graces, Acting Commissioner of Internal Revenue, announced today
that the additional taxes imposed on liquors under the Revenue Act of 1943
become effectiv e

1 , 1944*

As a re su lt, every person holding d is tille d

s p ir its and wines intended for sale or fo r use in the manufacture of a r tic le s
intended fo r s a le , and every person holding fermented malt liquors intended for
s a le , i s required to take an inventory of such d is tille d s p ir its , wines, and
malt liquors before beginning business on Matfe 1 , 1944, and to f i l e a return
covering a l l such taxable liquors with the Collector of Internal Revenue of his
/

d is tr ic t on or before ttw riiM t, 1944«
Return blanks w ill be supplied by co llecto rs of internal revenue, but
dealers who f a i l to receive return blanks and instructions should obtain them
from the co llecto rs in th e ir d is tr ic ts *
The floor stocks tax was enacted in order to equalize the ta x on existing
stocks of d is tille d s p ir it s , beer and wine with the new tax rates provided in the
new Revenue Act*

The floor stocks tax is three d ollars per tax gallon on

d is tille d s p ir it s , #1 per barrel on malt liqu ors, fiv e cents per gallon on wine
containing 14$ of le s s of alcohol, twenty cents per gallon on wine containing
14 to 21 percent alcohol, $1 per gallon on wine containing 21 to 24 percent
alcohol, fiv e cents per h a lf pint on champagne, and five cents per h alf pint
on a r t if ic a lly carbonated wines*
In order that the war program may receive the f u ll benefit of the tax and
that dealers be placed on an equal competitive basis, Mr* Graves emphasized the
importance o f s t r i c t compliance with th is law*

He stated that D is tric t Supervisors

o f the Alcohol Tax Unit have been instructed to inspect carefu lly a ll dealers in
th e ir respective d is tr ic ts and to investigate a l l cases of evasion or attempts to
evade the tax, and to report a l l violations to the United States Attorney for
appropriate action*

The law further provides fo r the addition of a penalty,

percent of the to ta l ta x due where fa lse or fraudulent returns are

^yu

50 J

TREASURY DEPARTMENT
Bureau of Internal Bevenue
Washington, X). C.
FOR IMMEDIATE RELEASE
Monday, February 28, 1944*

Press Service
No. 40-91

Harold N. Graves, Acting Commissioner of Internal Revenue, announced today
that the additional taxes Imposed on liquors under the Revenue Act of 1943
become effective April lj 1944* As a result, every person holding distilled*
spirits and wines intended for sstle or for use in the manufacture of articles
intended for sale, and every person holding fermented malt liquors intended for
sale, is required to take m inventory of Such distilled spirits, wines, and
malt liquors before beginning business on April 1, 1944, and to file a return
covering all such taxable liquors with the Collector of Internal Revenue of
his district on or before May 1, 1944.
Return blanks will b© supplied by collectors of internal revenue, but
dealers who fail to receive retorn blanks and instructions should obtain them
from the collectors in their districts.
The floor stocks tax was enacted in order to equalize the tax on existing
stocks of distilled spirits, beer and wine with the new tax rates provided in
the new Revenue Act. The floor stocks tax is three dollars per tax gallon on
distilled spirits, $>1 per barrel on malt liquors, five cents per gallon on
wine containing 14$ or less of alcohol, twenty cents per gallon on wine
containing 14 to 21 percent alcohol, ;¿1 per gallon on wine containing 21 to
24 percent alcohol, five cents per half pint on champagne, and five cents per
half pint on artifically carbonated wines.
In order that the war program may receive the full benefit of the tax and
that dealers be placed on an equal competitive basis, Mr. Graves emphasized
the importance of strict compliance with this law. He stated that District
Supervisors of the Alcohol Tax Unit have been instructed to inspect carefully
all dealers in their respective districts and to investigate all cases of
evasion or attempts to evade the tax, and to report all viola.tions to the
United States Attorney for appropriate action. The law further provides for
the addition of a penalty of $0 percent of the total tax due where false or
fraudulent returns are filed.

-0O0-

Harold N# Graves, Acting Commissioner of Internal Revenue, reminded
taxpayers today that th eir 1943 income and victory tax returns are s t i l l
due on or before March 15 and are not changed, except in one minor respect,
by the new revenue act»

The minor change a ffects only a few higher income

taxpayers*
Commissioner Graves explained th a t, with th e one exception, the changes
in the income and victory tax law resu ltin g from the new act w ill not a lte r
the tax forms or blanks u n til next year*
The one and only change in the 1943 return forms which taxpayers now have
is the elimination of Schedule L at the bottom of page 4 of long form/1040)and
the elimination of Schedule L -2, a separate sheet which some taxpayers have
received on request.

Schedule L-2 was not distributed generally#

Schedules L and L-2 would hav

ille d out only by taxpayers whose

income had increased by mare than $20,000 in recent years.

These schedules

were intended to effectu ate a provision of the Current Tax Payment act which
reduced the 1942 tax forgiveness in these cases.

The provision was known as

the "second anti-windfall" section, but has now been repealed by the new
revenue act#

im'

TREASURY DEPARAIENT
Bureau of Internal Revenue
Washington, ü. C.
FOR IMMEDIATE RELEASE,
Tuesday, February 29, 1944

Press Service
No. 40-92

Harold N, Graves, Acting. Commissioner of Internal Revenue, reminded
taxpayers today that their 1943 income and victory tax returns are still
due on or before March 15- and are not changed, except in one minor respect,
by the new revenue act. Ale minor change affects only a few higher income
taxpayers.
Commissioner Graves explained that, with the one exception, the changes
in the income and victory tax law resulting from the new act will not alter
the .tax forms or blanks until next year.
The one and only change in the 1943 return forms which taxpayers now have
is the elimination of Schedule L at the bottom of page 4 of long form 1040 and
the elimination of Schedule L-2, a separate sheet which some taxpayers have
received on request. Schedule L-2 was not distributed generally.
Schedules L and L-2 would have been filled out only by taxpayers whose
income had increased by more than $>20,000 in recent years, These schedules
were intended to effectuate a provision of the Current Tax Payment act which
reduced the 1942 tax forgiveness in these cases. The provision was known as
the "second anti-windfall" section, but has now been repealed by the new
revenue act.

-0O0-

TREASURY DEPARTMENT
Washington
FOR RELEASE, WORKING NEWSPAPERS,
Tuesday» February 29» 1944._____

Prass Service

The Secretary of the Treasury announced last evening that the tenders for
11,000,000,000, or thereabouts, of 91-day Treasury bills to be dated March 2 and to
mature June 1, 1944, which were offered on February 25, were opened at the Federal Re­
serve Banks on February 28.
The details of this issue are as follows:
Total applied for - $2,151,449,000
Total accepted
- 1,002,953*000
Average price

(includes $63,985,000 entered on a fixed-price
basis at 99*905 and accepted in full)
- 99.905/ Equivalent rate of discount approx. 0.375$ per annum

Range of accepted competitive bids:
High
Low

- 99*91$ Equivalent rate of discount approx. 0*356$ per annum
- 99*905
**
n n
n
n
0.376$ »
«*

(38 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

i

$

$2,151,449,000

«1,002,953,000

12,340,000
1,415,527.000
31,469,000
39,515,000
18,845,000
5,075,000
301,990,000
119,835,000
7,755,000
25,373,000
10,835,000
162.890.000

7,690,000
594,531,000
15,287,000
31,409,OCX)
16,086,000
4,453,000
148,544,000
57,463,000
3,412,000
21,405,000
9,471,000
93,202,000

TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Tuesday, February 29, 1944

Press Service
No. 40-93

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 March 2 and to mature June 1, 1944,
which were offered on February 25, were opened at the Federal
Reserve Banks on February 28*
The details of this issue are as follows:
Total applied for'- $2,151,449,000
Total accepted
- 1,002,953,000
(includes $ 6 3 , 9 8 5 , 0 0 0
entered on a fixed-price basis
at 99-905 and accepted in full)
Average price

,

- 99*905 / Ecuivalent rate of discount
approx, 0.375$ per annum

Range of accepted competitive bids:
High

- 9 9 j91Q Equivalent rate of discount
approx. 0,356$ per annum

Dow

- 99*905 Equivalent rate of discount
approx, 0,376$ per annum

(38 percent of the amoun t bid for at the low price was accepted)
Federal Ueserye
District

Total
Applied for

Boston
New York
Ph 11a d elph-ia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas City
Dallas
San Francisco

Ü
1

Total

12,340,000
1 5 ,5 2 7 , 0 0 0
31,469,000
39,515,000
18,845,000
5,075,000
3 0 1 ,9 9 0 , 0 0 0
119,835,000
7,755,000
25,373,000
10,835,000
162,890,000

,4

#2,151,449,000
0 O0

Total
‘Accented
#

,6 3 0 , 0 0 0
,5 3 1 , 0 0 0
15,287,000
31,409*000
16,086, 000
4,453,000
148,544,000
57,463,000
3,412,000
2 1 ,4 0 5 , 0 0 0
9,471,000
93,202,000
7

5 9 4

#1,002,953,000

TABLE OF INTEREST ADJUSTMENTS PEE $1.000 IN CONNECTION WITH EXCHANGE OF
"VARIOUS BONDS AND NOTES FOR 2-1/4% TREASURY RONDS OF
DAThT>
FEBRUARY 1, 1944. UNDER DEPARTMENT CIRCULAR NO. 735

SECURITIES SURRENDERED

Accrued inter­
est to be
credited on
securities sur­
rendered

Accrued inter­
est to be
charged on
bonds issued

Net amount
to be paid
to sub­
scriber

Net amount
to be col­
lected froa
subscriber

Exchange as of March 15, 1944

I

1# Treasury Notes, Series
B-1944
3Ì# FFMC Bonds of 1944-64 in
coupon form
FFMC Bonds of 1944-64 in
registered form
1# RFC Notes, Series W
3/4# Treasury Notes, Series
A-1944

— — —■

$2.65797

— — —

2.65797

#16.25
4.15301

2.65797
2.65797

1.86475

2.65797

.----

.79322

16.25

4.55335

11.69665

—

15.00

5-53161

9.46839

15.00

6.30759

S.61241

3.75

8.28297

—

$2.65797
2.65797

$13.59 2 0 7
1.49504

—

Exchange as of April 15, 1944
3i# Treasury Bonds of 1944-46
Exchange as of May lj 1944
3# HOLC Bonds, Series A 1944-52
Exchange as of May 15, 1944
3# FFMC Bonds of 1944-49
Exchange as of June 15, 1944
3/4# Treasury Notes, Series
A-1944

4.53297

IT WILL BE NOTED THAT THE HOLDER OF THE SECURITIES TO BE EXCHANGED WILL BE PAID
OR CREDITED WITH INTEREST AT THE RATE BORNE BY THOSE SECURITIES TO THEIR RESPEC­
TIVE MATURITY OR REDEMPTION DATES, EXCEPT IN THE CASE OF IHE RFC NOTES AND, AT
THE HOLDER’ S OPTION, THE TREASURY NOTES OF SERIES A-1944.

-

8

-

TABLE OF INTEREST ADJUSTMENTS PER $1,000 IN CONNECTION WITH EXCHANGE OF
VARIOUS BONDS AND NOTES FOR 2-l/2% TREASURY BONDS OF 1965-70, DATED
FEBRUARY 1, 1944, UNDER DEPARTMENT CIRCULAR NO. 734

SECURITIES SURRENDERED

Accrued inter­
est to be
credited on
securities sur­
rendered

Accrued inter­
est to be
charged on
bonds issued

Net amount
to be paid
to subscrib e r

Net amount
to be collected fra
subscriber

Exchange as of March 15» 1944
1# Treasury Notes, Series
B-1944
3Ì-$> FFMC Bonds of 1944-64 in
coupon form
3h% FFMC Bonds of 1944-64 in
registered form
1% RFC Notes, Series W
3/4# Treasury Notes, Series

A-I944

#2.9533

#2.9533

2.9533

2.9533

#16.25
4.15301

2.9533
2.9533

1.86475

2.9533

#13.2967
1.19971
1.08855
rii

Exchange as of April 15» 1944

3$% Treasury Bonds of 1944-46

16.25

5.05927

11.19073

1 5 .0 0

6.14623

8.85377

1 5 .0 0

7.09732 ;

7.90268

Exchange as of May 1, 1944

3% HOLC Bonds, Series A 1944-52
Exchange as of May 15 , 1944

3% FFMC Bonds of 1944-49
Exchange as of June 15» 1944

3/k% Treasury Notes, Series
A-1944

3.75

9.2033

5.4533

IT WILL BE NOTED THAT THE HOLDER OF THE SECURITIES TO BE EXCHANGED WILL BE PAID
OR CREDITED WITH INTEREST AT THE RATE BORNE BY THOSE SECURITIES TO THEIR RESPEC­
TIVE MATURITY OR REDEMPTION DATES, EXCEPT IN THE CASE OF THE RFC NOTES AND, AT
THE HOLDER'S OPTION, THE TREASURY NOTES OF SERIES A-1944*

-

2

-

The 2-1/2 percent Treasury Bonds of 1965-70 will mature March 15, 1970, but may be
redeemed at the option of the United States on and after March 15, 1965. The 2-1/4
percent Treasury Bonds of 1956-59 will mature September 15, 1959, but may be redeemed
at the option of the United States on and after September 15, 1956.
The Treasury Hotes of Series A-194# will be dated March 15, 1944, and will
bear interest from that date at the rate of 1-1/2 percent per annum, payable semi­
annually on September 15, 1944, r^id thereafter on March 15 and September 15 in each
year until they mature on September 15, 194$• They will not be subject to call for
redemption prior to maturity. They will be issued in bearer form only, with interest
coupons attached, in denominations of #1,000, #5,000, $10,000, $100,000 and $1,000,000,
Pursuant to the ©revisions of the Public Debt Act of 1941, Interest upon the
bonds and notes now offered shall not have any exemption, as such, under Federal tax
acts now or hereafter enacted. The full provisions relating to taxability are set
forth in the official circulars released today*
Subscriptions will be received at the Federal Reserve Banka and Branches and
at the Treasury Department, Washington, Banking institutions generally may submit
subscriptions for account of customers, but only the Federal Reserve Banks and the
Treasury are authorised to act as official agencies. Subject to the usual reserva­
tions, all subscriptions will be allotted in full. All subscriptions should be
accompanied by the securities to be exchanged and appropriate remittance in any case
where the table of interest adjustments at the end of the offering circular shows
that an amount is to be collected from the subscriber.
In the case of Treasury Motes of Series B-1944, the 3-1/4 percent FFIIC bonds,
and the RFC notes, interest adjustments will be made as of March 15* In the ease of
the Treasury Bonds of 1944-46, the H0LC bonds and the 3 percent FFMC bonds, adjust­
ments will be made as of their respective due dates. Holders of the Treasury Hotes
of Series A-1944 are given the option of having interest adjusted as of March 15 or
June 15. The bases on which the securities comprising these seven issues may be
presented and accepted, and the new securities obtained, are specifically set forth
in the official circulars.
In determining the amount of interest received upon the securities exchanged,
and the exemption to which such interest is entitled, for Federal income tax pur­
poses, the full amount which is allowed as interest on the securities surrendered
in the exchange will be regarded as such to the extent that it accrued to the holder
making the exchange, and not as a capital recovery\ similarly the amount of interest
charged the subscriber on the new securities issued will be regarded as an invest­
ment of capital, and therefore upon subsequent recovery of such amount (i«e., upon
payment of interest to him on the securities or upon sale or other disposition by
him of the securities) as a return of capital and not as interest income.
The texts of the official circulars follow:

TREASURY DEPARTMENT
■\ Washington
FOR RELEASE, MORNING PAPERS,
Thursday, March 2, 1944.

pr8SS Service
%o

S ecretary o f the Treasury Morgenthau today announced an exchange offerin g of
s e c u ritie s , through the Federal Reserve Banks, open to holders o f the follow inglis te d s e c u ritie s :
Description and Title

Maturity or
Call Date

Amount Outstanding
(Millions of Dollars)

Treasury issues:
1* Treasury Notes of Series B-1944
3-1/4* Treasury Bonds of 1944-46
3/4$ Treasury Notes of Series A-1944

March 15# 1944
April 15, 1944
June 15# 1944

515
1,519
416

Federal Farm Mortgage Corporation issues:
3-1/4* FFMC Bonds of 1944-64
3* FFMC Bonds of 1944-49

March 15, 1944
May 15, 1944

95
&35

Reconstruction Finance Corporation issuer
1* RFC Notes of Series f

April 15, 1944

571

Home Owners* Loan Corporation issue:
3% H0LC Bonds, Series A Ï944-52

May 1, 1944

779
TOTAL . . . 4,730

The Treasury Bonds of 1944—46 were called last
April 15. The Federal Farm Mortgage Corporation is
its two issues listed above for redemption on their
and the Home Owners* Loan Corporation is announcing
May 1 of its Series A 1944-52 bonds.

December for redemption on
today announcing the call of
next interest payment dates,
the call for redemption on

Holders of any of the seven issues enumerated, other than commercial banks, will
be given an opportunity to exchange all or any part of their called or maturing secu- j
rities for additional amounts of 2-1/2 percent Treasury Bonds of 1965-70 and 2-1/4
percent Treasury Bonds of 1956—59# both dated February 1, 1944# in amounts or multiply
of $500, or for a new Treasury note to be dated March 15, 1944, in amounts or multiple!
of $1,000, with adjustments of accrued interest. Commercial banks will be permitted
to exchange their own holdings for the new notes, but not for the bonds, which are
restricted as to commercial bank holdings.

I

me-**!

The Treasury Bonds of 1965-70 and the Treasury Bonds of 1956-59 now offered in
exchange for the called and maturing securities listed above constitute additional
issues of the bonds recently sold during the Fourth War Loan Drive. They are dated
February 1, 1944# end bear interest from that date at the rate of 2-1/2 percent and
2-1/4 percent per annum, respectively, payable on a semiannual basis on September 15# I
1944# and thereafter on March 15 and September 15 in each year until the principal
amounts become payable. Both are Issued in two forms, bearer bonds with interest
coupons attached, and bonds registered as to principal and interest. Both forms are
issued in denominations of $500, $1,000, #5,000, #10,000, #100,000 and $1,000,000.

UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Farm Mortgage Corporation
For JmmMmtm Release^}
—

—

™

c>

~

Federal Farm Mortgage Corporation Calls Bonds
The call for redemption of two issues of outstanding Federal Farm Mortgage Corporation
bonds was announced today by A. 6« Black, Chairman of the Board of Directors of the
Federal Farm Mortgage corporation. One of these is a 3 l/4 percent issue dated March
15, 1934, due March 15, 1964, and redeemable on and after March 15, 1944. Bonds of
this issue will cease to bear interest on March 15, 1944. The other is a 3 percent
issue dated May 15, 1934, due May 15, 1949, and redeemable on and after May 15, 1944.
Bonds of this issue will cease to bear interest on May 15, 1944. Approximately
$95,000,000 and $335,000,000, respectively, of bonds of these two issues are now out­
standing.
It was also announced that the Secretary of the Treasury will make available to holders
of bonds of the above described issues interest bearing obligations of the United
States.
The text of the public notice of call follows:
"NOTICE OF CALL FOR REDEMPTION
FEDERAL FARM MORTGAGE CORPORATION
»TO HOLDERS OF 3 1/4 PERCENT BONDS OF 1944-64 and 3 PERCENT BONDS OF 1944-49 OF THE
FEDERAL FARM MORTGAGE CORPORATION, AND OTHERS CONCERNED:
»Public notice is hereby given that the Federal Farm Mortgage Corporation has
called for redemption on -March 15, 1944* all its outstanding 3 1/4 percent bonds
of 1944-64. They will cease to bear interest on that date. Unless previously
surrendered these bonds will be payable at par upon presentation at any Federal
reserve bank or branch, or at the Treasury Department, Washington, D. C., on and
after March 15, 1944.
"Public notice is also hereby given that the Federal Farm Mortgage Corporation
has called for redemption on May 15, 1944, all its outstanding 3 percent bonds of
1944-49. They will cease to bear interest on that date. Unless previously sur­
rendered these bonds will be payable at par upon presentation at any Federal re­
serve bank or branch, or at the Treasury Department, Washington, D. C., on and
after May 15, 1944.
"The presentation and surrender of bonds of these two issues will be governed by
the provisions of Treasury Department Circular Ho. 666, dated July 21, 1941.
"An offering of interest bearing obligations of the United States will be made
available to holders of bonds of these two issues, concerning which public
announcement will be made by the Secretary of the Treasury.
"March 2, 1944
»FEDERAL FARM MORTGAGE CORPORATION
"ATTEST:
George H. Thomas
Secretary
"Approved:
H. Morgenthau, Jr.
Secretary of the Treasury»

By Harris E. Willingham
Executive ?ice President

UNITED STATES DEPARTMENT OF AGRICULTURE
Federal Farm Mortgage Corporation
For Release, March 2 , 1944.
Federal Farm Mortgage Corporation Calls Bonds
The call for redemption of two issues of outstanding Federal Farm Mortgage Corpora-U..
tion bonds was announced today by A 0 G, Black, Chairman of the Board of Directors of
the Federal Farm Mortgage Corporation. ..One of these is a 3 1 / 4 percent issue dated
March 15* 1934* due March 15* 1964* and redeemable on and after March 15* 1944*
Bonds of this issue will cease to bear interest on March. 15, 1944* The other is
a 3 percent issue dated May 15, 1934* due May 15, 1949* and redeemable on and after
May 15, 1944. Bonds of this issue will cease to bear interest on May 15 1944. Ap­
proximately y>95*000,000 and it>835 *000 ,Q00 * respectively, of bonds of these two issues
are now outstanding*
It was also annouhced that the Secretary of the Treasury will make available to
holders of bonds of the above described issues interest bearing obligations of the
United States.
The text of the public notice of call follows:
“NOTICE OF CALL FOR REDEMPTION
FEDERAL FARM MORTGAGE CORPORATION
"TO HOLDERS OF 3 1/4 PERCENT BONDS OF 1944-64 and 3 PERCENT BONDS OF 1944-49 OF THE
FEDERAL FARM MORTGAGE CORPORATION, AND OTHERS CONCERNED:
“Public notice is hereby given that the Federal Farm Mortgage Corporation has
called for redemption on March 15* 1944* all its outstanding 3 l/4 percent bonds
of 1944-64. They will cease to bear interest on that date. Unless previously
surrendered these bonds will be payable at par upon presentation at any Federal
reserve bank or branch, or at the Treasury Department Washington D. C
on and
after March 15, 1944.

11“Public notice is also hereby given that the Federal Farm Mortgage Corporation
has called for redemption on May 15, 1944* all its„outstanding 3
1944-49. They will cease to bear interest on that date. Unless
rendered these bonds m i l be payable at pa*r upon presentation at
serve bank or branch, or at the Treasury Department, Washington,
after May 1 5 , 1944.

percent bonds of
previously sur­
any Federal re­
D. C., on and

“The presentation and surrender of bonds of these two issues will be governed by
the provisions of Treasury Department Circular No. 666 ,• dated July 21, 1941.
“An offering of interest bearing obligations of the United States will be made
available to holders of bonds of these two issues, concerning which public
announcement will be made by the Secretary of the Treasury.
“March 2 , 1944
“ATTESTi
George H. Thomas
Se ere tary
"Approved:
H. Morgenthau, Jr.,
Secretary of the Treasury"

“FEDERAL FARM MORTGAGE CORPORATION
By Harris E. Willingham
Executive Vice President

T

1

'V-:

TREASURY DEPARTMENT
-Washington
EOS. RELEASE, MORNING PAPERS,
Thursday, March 2, 1944.'

Press Service
Ho. 40-94

‘

Secretary of the Treasury Morgenth.au today announced an exchange offering of
securities, through the Federal Reserve Banks, open to holders of the followinglisted securities:
Description and Title

Maturity or
Call Date

Amount Outstanding
(Millions of Dollars)

Treasury issues:
1$> Treasury Dotes of Series B-1944
3-1/4$ Treasury Bonds of 1944-46
3/4$ Treasury Dotes of Series A-1944

March 15, 1944
April 15, 1944
June 15, 1944

515
1,519
416

Federal Farm Mortgage Corporation issues*
3-1/4$ FFMC Bonds of 1944-64
3$ FFMC Bonds ef 1944-49

March 15, 1944
May 15, 1944

95
835

Reconstruction Finance Corporation issue;
1$ RFC Notes of Series V

April 15, 1944

.571

Home Owners’ Loan Corporation issues
3cj> HOLC Bonds, Series A 1944-52

May 1, 1944

779
TOTAL . . .

The Treasury Bonds of 1944-46 were called last
April 15. The Federal Farm Mortgage Corporation is
its two issues listed above for redemption on their
and the Home Owners’ Loan Corporation is announcing
May 1 of its Series A 1944-52 bonds.

4,730

December for redempton on
today announcing the call of
next interest payment dates,
the call for redemption on

Holders of any of the seven issues enumerated, other than commercial banks,'
will;.' be given an opportunity.-to exchangecall prcany part’of- their Called or. matur- .
ing securities for additional amounts of 2-l/2 percent Treasury Bonds of 1965-70
and 2-1/4 percent Treasury Bonds of 1956-59, both dated February 1, 1944, in amounts
or multiples of $500, or for a new Treasury note to be dated March 15, 1944, in
amounts or multiples of $1,000, with adjustments of accrued interest. Commercial
banks will be permitted to exchange their own holdings for the new notes, but not
for the bonds, which are restricted as to commercial bank holdings.
The Treasury Bonds of 1965-70 and the Treasury Bonds of 1956-59 now offered in
exchange for the called and maturing securities listed above constitute additional
issues of the bonds recently sold during the Fourth War Loan Drive. They are dated
February 1, 1944, and bear interest from that date at the rate of 2-l/2 percent and

\

—

2

—

2-1/4 percent per annum, respectively, payable on a semiannual basis on
September 15, 1944, and thereafter on March 15 and September 15 in each year until
the principal amounts become payable. Both are issued-in two forms, bearer bonds
with interest coupons attached, and bonds registered as to principal .and interest.
Both forms are issued in denominations of $500, $1,000, $5,000, $10,000, $100,000
and $1,000,000 #< The 2-1/2 percent Treasury Bonds of 1965-70 will mature March 15,
1970, but may be redeemed at the option of the United States on and after March 15,
1965. The 2-1/4 percent Treasury Bonds of 1956-59 will mature September 15, 1959,'
but may be redeemed at the option of the United States on and after September 15,
1956.
The Treasury Notes of. Series $.-*1948 will be ’dated March 15, 1944, and will
bear interest from that date at the rate of 1-1/2 percent per annum, payable semi­
annually on September 15, 1944, and thereafter on March 15 and September 15 in each
year until they mature on September 15, 1948. They will not be subject to call for
redemption prior to maturity. They will be issued in bearer form only, with inter­
est coupons attached, in denominations of $1,000, $5,000', /L0,000, 4100,000 and
$1 ,000,000.

Pursuant to the provisions $C the Public Debt Act of 1941, interest upon the
bonds and notes now offered shalli afift
any exemption, as such,-under Federal
tax acts now or hereafter enacted. The full provisions relating to taxability
are set forth in the official circulars released today.
Subscriptions will be received at the Federal Reserve Banks and Branches and
at the .Treasury Department, Washington, Banking institutions generally may submit
subscriptions for account of customers, but on3.y the Federal Reserve Banks and the
Treasury are authorised to act as official agencies, Subject to the usual reserva­
tions,, all subscriptions will be allotted in full. All subscriptions should be
accompanied by the securities to be exchanged and appropriate remittance in any
case where the table of interest adjustments at the end of the offering circular
shows that an amount is to be collected from the subscriber.
In the case of Treasury Notes* of Series B—1944, the- 3~l/4 percent *FFMC bonds,
and the RFC notes, interest adjustments m i l be made as of March 15. ,In the case
of the Treasury Bonds of 1944-46, the HOLC bonds and the 3 percent FFMC bonds,
adjustments will be made as of their respective due dates. Holders of the Treasury
Notes of Series A-1944 are- given the, option of having interest adjusted as of
March 15 or June 15. The bases on. which the securities comprising these seven
issues may be presented and accepted, and the new securities obtained, are spe­
cifically set forth in the officiäl circulars.
In determining the amount* of interest received upon the securities- exchanged,
and the exemption to which such interest is entitled, for Federal income tax pur­
poses, the full amount which is allowed as interest on the securities surrendered
in the exchange will be regarded as such to the extent that it accrued to the
holder making the exchange, and. not as a capital recovery; similarly the amount
of interest charged-the subscriber on the new securities issued will be regarded
as an investment of, capital, and therefore upon subsequent recovery of such
amount (i.e
upon payment of interest to him on the securities or upon sale or
other disposition by him of the securities) as a return of capital and not as
interest income.
The texts of the official circulars follow:

UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY BONDS OF 1965-70
Dated and bearing interest from February 1, 1944

Due March 15, 1970

REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND
AFTER MARCH 15, 1965
Interest payable March 15 and September 15

ADDITIONAL ISSUE
1944
Department Circular No. 734
■V
Fiscal Service
Bureau #f the Public Debt

TREASURY DEPARTMENT,
Office of the Secretary,
' Washington, March 2, 1944.

I.
1.

J^CCHAMGB OFFERING OF BONDS

The Secretary of the Treasury, pursuant to the authority of the Second

Liberty Bond Act, as amended, invites subscriptions, at par with adjustments of
accrued interest as shown in the table at the end of this circular, from the people
of the United States for bonds of the United States, designated 2-1/2 percent Treas­
ury Bonds of 1965-70, inpayment of which any of the following listed securities,
singly or in combinations aggregating $500 or multiples thereof, may be tendered:
Treasury issues: •
Vfo Treasury Notes of Series B-1944, maturing March 15, 1944
3-1/4$ Treasury Bonds of 1944-46, called for redemption on April 15,1944
3/4$ Treasury Notes of Series A-1944, maturing June 15, 1944
Federal Farm Mortgage Corporation issues:
3-1/4$ FFMC Bonds of 1944-64, called for redemption on March 15, 1944
3$ FFMC Bonds of 1944-49, called for redemption on May 15, 1944
Reconstruction Finance Corporation issue:
'
' i$ RFC Notes of Series W f maturing Aoril 15, 1944
Home Owners’ Loan Corporation is^ue:
3$TlOLO Bonds, Series A 1944-52, called for redemption on May 1, 1944
These bonds will not^be available for subscription, for their own account, by com­
mercial banks, which are defined for this purpose as banks accepting demand deposits.
The amount of the offering under this circular will be limited to the amount of the

.. - 2 above-listed bonds and notes tendered and accepted.

In addition to the offering

under this circular, holders of any of the securities listed, other than commercial
banks, are offered the privilege of exchanging all or any part of such securities
for 2-1/4 percent Treasury Bonds of 1956-59, and all holders, including commercial
banks, may exchange for 1-1/2 percent Treasury Notes of Series A-194#, which offer*
ings are set forth in Department Circulars Nos.( 735 and 736, issued simultaneously
with.this circular.
' II.
1.

DESCRIPTION- OF BONDS

The bonds now offered will be an addition to and will form a part of the

series of 2-1/2 percent Treasury Bonds of 1965-70 issued pursuant to Department
Circular No, 729, dated January IS, 1944, will be freely interchangeable therewith,
and are identical in all respects therewith.

They are dated.February 1, 1944, and

bear interest from that date at the rate of 2-1/2 percent per annum, payable on a.
semiannual basis on September 15, 1944, and thereafter on March 15 and September 15
in each year until the principal amount becomes payable.

They will mature March 15,

1970, but may be redeemed at the option of the United States on» and after March 15,
1965, in whole or in part, at oar and accrued interest, on any interest day or days,
on 4 months’ notice of redemption ¡riven in such manner as the Secretarv of the
Treasury shall prescribe.; In case of Partial.redemption the bonds to be redeemed
will be determined by such method’as may be Prescribed by the Secretary of the
Treasury.

From the date of redemption designated in any such notice, interest on

the bonds called for redemption shall cease.
2.

The income derived from the bonds shall be subject to all Federal taxes,

now or hereafter imposed.

The bonds shall be subject to estate, inheritance, gift

or other excise taxes, whether Federal or State, but shall be exempt from all taxa­
tion 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 3.

The bonds will be acceptable to secure deposits of public moneys.

They

will not be entitled to any privilege of conversion.
4,

Bearer bonds with interest coupons attached, and bonds..registered as to

principal and interest, will be issued in denominations-:of $$00, $1,000> $$,000,
$10,000, $100,000 and $1,000,000'.

Provision will be made for the interchange of

bonds of different’denominations and of coupon and'registered bonds> and for the
transfer of registered, bonds, under rules and regulations prescribed by the Secretary
of the Treasury.

Except as provided in Section I of Department Circular No. 729,

these bonds may not, before February 1, 1954, be transferred to or be held by com*

mercial banks, which are defined for Ibis Purpose- as banks accepting demand depos­
its; however, the bonds may be plodded
commercial, banks, but any such.
because of the failure of such

collateral for loans,- including loans by

a-co^ripg :suCh bonds before February-1, 1954,
to b-P 'paid at maturity will- be reouired to dis­

pose of them in the same manner as they-dispose of other assets not eligible to be
owned by banks.
$.. Any bonds issued hereunder which uoon the death of the owner constitute
part of his estate, will be redeemed at the option of the duly constituted repre­
sentatives of the deceased owner’s estate, at oar and accrued interest to date of
paylfteht,i-provided:’
•
(a) that the bonds were actually owned by the decedent at the time of his
.death: and
(b) that the Secretary of the Treasury be authorized to apply the entire
proceeds of redemption to the payment of Federal estate taxes.
Registered bonds submitted.for redemption hereunder must be duly assigned to "The
Secretary of the Treasury for redemption, the proceeds to be paid to the Collector
of Internal Revenue at _________________

• for credit on Federal estate taxes due

tl An exact "half-year’s interest is computed for each, full half-year period irre­
spective of the actual number of days in the half year. For a. fractional part of
any half year', computation is on the basis of the actual number of days in such
half year.
' -

i

- 4 from estate o f _____________ _____________ .”

Owing to the periodic closing of

the transfer books and the imnossibility of stopping payment of interest to the
registered owner during the closed period, registered bonds received after the
closing of the books for oayment during.such closed Period will'be Paid only at
oar with a deduction of interest from the date of payment to the next'interest
payment date;—

bonds received during the closed period for payment at a date_

after the books reopen will be raid at par plus accrued interest from the reopen­
ing cf the books to the date of payment.

In either case checks for the full six

months’, interest due on the last day of the closed period*will be forwarded to
the owner in due course.
1722,—

All bonds submitted must be' accompanied'by Form FD

properly completed, signed and sworn to, and by a certificate of the

appointment of the Personal representatives,'under seal of the court,•dated not
%
more than six months- prior to tfe.» submission, of' the bonds, which shall show that
at the date thereof the appointment was still in force and effect.

Upon payment

•

of the bonds appropriate memorandum receipt will be forwarded to the represents- .
fives, which will be followed in due course by formal, receipt from the Collector
of Internal Pevenue.
6.

Except as provided in the preceding paragraphs, the bonds will be subject

to the general regulations of the Treasury Department, now or hereafter prescribed,
governing United States bonds.
III.
1.

SUBSCRIPTION AND ALLOTMENT

Subscriptions will, be received, at the Federal Reserve Banks and Branches

and at the Treasury Department, Washington,

Banking institutions generally may

submit subscriptions for account of customers, but- only the Federal Reserve Banks
2. The. transfer books are closed from February 16 to March 15, and from August 16
to September 1 5 -(both dates, inclusive) in each year.
3. Conies of Form PD 17&2 may be obtained from any Federal Reserve Bank or from
the Treasury Department, "Washington, D. C.

and the Treasury Department are authorized to act as official agencies.
2.

The Secretary of- the Treasury reserves thé right to reject any subscription,

in whole or in part, and to close the books as to any or all subscriptions at .any
time without notice; and any action he may take in these respects shall be final.
Subject to these reservations, all subscriptions will be allotted in full.

Allot­

ment notices will'be sent out oromotly upon allotment. ‘
IV. ' PAYMENT
1.

Payment at par and accrued interest from February 1, 1944, for bonds allotted

hereunder must be made or completed on or before March 15, 1944, or on later allot­
ment.

Payment of the principal amount may 'be made only in the bonds or notes-to be

exchanged,- which will be accepted at par, and should accompany the subscription.
Accrued interest on the securities surrendered will be credited, and accrued inter­
est on the new bonds from February 1, 1944, will be charged, as shown in the table
at the end of this circular.

Where the 'table shows' that an amount will be collected

from the subscriber, the remittance should accompany the securities and subscription.
Where an amount is to be paid to the subscriber, it will be paid, in the case of
.and notesj
coupon bonds/ following their acceptance, and in the case of registered bonds, 'fol­
lowing discharge of registration.

Interest accrued on the securities to be exchanged,

and on the new bonds to be'issued, 'will be adjusted as of various dates as follows:
Securities to' be exchànged

.

2,

Date of adjustment

Treasury Notes of Series B-1944 . . . March 15, 1944
FFMC Bonds of 1944-64 . . . . . . . . March 15, 1944
RFC Notes of Series W ...............March 15, 1944
Treasury Bonds of 1944-46 .......... April 15, 1944
HGLC Bonds, Series A 1944-52........ May 1, 1944
FFMC Bonds of 1944-49 ............ .. May 15, 1944
Treasury Notes of Series A-1944 . . . March 15 or June 15, 1944,
as the holder may elect and
specify in his subscription.
Holders of Treasury Notes of Series B-1944 and FFMC Bonds of 1944-64 will

detach coupons dated March 15, 1944, and cash them when due.

With respect to the

other five issues, all unmatured coupons, including the one next due, must be attached

-

6-

to the securities to be exchanged when they are surrendered, and final interest on
these securities, and on registered bonds in all cases, will be- naid or credited in
a net amount.
V.
1.

SURRENDER OF CALLED BONDS

Coupon bonds.-Treasury Bonds of 1944-46, HOLC Bonds of Series A 1944-52,

FFMC Bonds of 1944-49 and FFMC Bonds of 1944-64 in coupon form tendered in payment
for bonds offered hereunder should be presented and surrendered with the subscrip­
tion to a Federal Reserve Bank or Branch or to the Treasurer of the United States,
Washington, D. C.

Coupons dated Aoril 15, 1944, May 1, 1944, May 15, 1944, and

September 15, 1944, respectively, and all coupons bearing subsequent dates, should
be attached to such bonds when surrendered, and if any such, coupons are missing,
the subscription must be accompanied by cash payment eoual to the face amount of
the missing coupons.
holder.

The bonds must be delivered at the expense and risk of the

Facilities for transportation of bonds by registered mail insured may be

arranged between incorporated banks and trust companies and the Federal Reserve
Banks, and holders may take advantage of such arrangements when available, utilizing
such incorporated, banks and trust companies as their agents.
2,

Registered bonds.-Treasury Bonds of 1944-46, HOLC Bonds of Series A 1944-52,

FFMC Bonds f*f 1944-49 and FFMC Bonds of 1944-64 in registered form tendered in payment
for bonds offered hereunder should be assigned by the registered payees or assignees
thereof, in accordance with the general regulations of the Treasury Department
governing assignments for redemption, in one of the forms hereafter set forth, and
thereafter should be Presented and surrendered with the subscription to a Federal
Reserve Bank or Branch or to the Treasury Department, Division of Loans and Currency,
Washington, D. C.
holder.

The bonds must be delivered at the expense and risk of the

If the new bonds are desired registered in the same name as the bonds

surrendered, the assignment should be to »The Secretary of the Treasury for exchange

- 7 r
far Treasury Bonds of 1965-70”; if the new bonds are desired registered in another
name, the assignment should, be to wThe Secretary of the Treasury for exchange for
Treasury Bonds of 1965~70 in the nSyiie of

-

”

if new bonds

in coupon form are desired, the assignment should be to nThe Secretary of the
Treasury for exchange far Treasury Bonds of 1965-70 in coupon'form to be delivered
to _____________________________

”.

VI.. GENERAL PROVISIONS
1.

• ; "'0

As fiscal agents of the United States, Federal Reserve Banks are authorized

and. requested to receive subscriptions, to

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 oayment for
bonds allotted, to make delivery of bonds on full-paid subscriptions, allotted, and
they may issue interim.receipts pending delivery of the definitive bonds.
2.

The Secretary of the Treasury may at any time, or from time to time, pre­

scribe supplemental or amendatory rules and. regulations governing the offering,
which will be communicated promotly to the Federal Reserve Banks.

HENRY MOEOEMTHAU, JR.,
Secretary of the Treasury,

ffi

TABLE OF INTEREST ADJUSTMENTS PER $1,000 IN CONNECTION WITH EXCHANGE OF
VARIOUS'BONDS AND NOTES FOR"2-1/¿% TREASURY BONDS OF 1965-70, DATED
FEBRUARY 1, X9U, UNDER DEPARTMENT CIRCULAR NO. 734.

SECURITIES SURRENDERED

Accrued inter*est to, be
credited on
securities surrendered

Accrued inter- Net amount Net amount
est to be
to be paid to be tolcharged on
to sublected from
bonds issued scriber
subscriber

Exchange as of March 1$, 194-4

"]$ Treasury Notes, Series
$2.9 533

- - -

$2.9533

2.9533

---------

2.9533

$1 6 .2 5
4 .15 3 0 1

2.9533
2.9533

$13.2967
1.19971

1.86475

2.9533

- - -

B-1944

3ÿ> FFMC Bonds of 1944-64 in
coupon form
3 ÿ FFMC Bonds of 1944-64 in
registered form
1% RFC Notes, Series ¥
3/4% Treasury Notes, Series
A-1944
Exchange as of April 15% 1944
34$ Treasury Bonds of 1944-46

—

1.08855

16.25

5.05927

11.19073

15.00

6.14623

8.85377

Exchange as of May 15« 1944
3% FFMC Bonds of 1944-49

15.00

7.0 9 732

7.90268

Exchange as of June 15* 1944
3/4% Treasury Notes, Series
A-1944

3.75

9.2033

----

Exchange as of May 1« 1944
3% HOLC Bonds, Series i.A 1944v

— *£ -

—

5.4533

IT WILL BE NOTED THAT THE HOLDER OF THE SECURITIES TO BE EXCHANGED WILL BE PAID
OR CREDITED WITH INTEREST AT THE RATE BORNE BY THOSE SECURITIES TO THEIR RESPEC­
TIVE MATURITY OR REDEMPTION DATES, EXCEPT IN THE CASE OF THE RFC NOTES AND, AT
THE HOLDER'S OPTION, THE TREASURY NOTES OF SERIES A-1944.
I

UNITED STATES OF AMERICA
2-1/4 PERCENT TREASURY BONDS OF 1956-59
Dated and bearing interest from February 1, 1944

Due September 15, 1959

REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND
AFTER SEPTEMBER 15, 1956.
Interest payable March 15 and September 15

*

ADDITIONAL ISSUE
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, March 2, 1944.

1944
Department Circular No. 735
Fiscal Service
Bureau of the Public Debt
I.
1.

EXCHANGE OFFERING OF BONDS

The Secretary of the Treasury, pursuant to the authority of the Second

Liberty Bond Act,- as amended, invites subscriptions, at par with adjustments of
accrued interest as shown in the table at the end of this circular, from the people
of the United States for bonds of the United States, designated 2rl/4 percent Treas­
ury Bonds of 1956-59, in payment of vihich any of the following listed securities,
singly or in combinations aggregating $500 or multiples thereof, may be,tendered:
Treasury Issues:
"""TIT Treasury Notes of Series B-1944, maturing March 1?, 1944
3-1/4$ Treasury Bonds of 1944-46, called for redemption on April 15,. 1944
3/4$ Treasury Notes of Series A-1944, maturing June 15, 1944
Federal Farm Mortgage Corporation Issues:
3 - W m r a Bonds of 1944-64, called for redemption on March 15, .1944
3% FFMC Bonds of 1944-49, called for redemption on May 15, 1944
Reconstruction Finance Corporation issue:
1$ RFC Notes of Series W, maturing April 15, 1944
Home Owners * Loan Corporation Issue:
’3$ HGLC Bonds, Series A 1944-52, called for redemption on May 1, 1944
These bonds will not be available for subscription, for their own account, by c«m-*
mer.eial banks, which'arb defined for this purpose as banks accepting demand deposits*
The amount of the offering under this circular will be limited to the amount of the

*

2

-

above-listed bonds and notes tendered and accepted*

In addition to the offering

tindel- this circular , holders of any of the securities "listed, othej* than cbrnmet’Cial
banks, are offered the privilege of exchanging all or any part of such securities
for 2-1/2 percent Treasury Bonds of 1965t-70, nnd

holders, including Commercial

banks, may exchange for 1-1/2 percent Treasury Notes' of Series A-194S, which offtr«*
ings are set forth in Department Circulars Nos. 734 and 736, issued simultaneously
with this circular.
... * ;
IV

II.

DESCRIPTION OF BONDS

The bonds now offered will be an addition to and will form a part of the

series of 2-1/4 percent Treasury Bonds of 1956-59 issued pursuant to Department
Circular No. 730, dated January %$y 1944,? will b<| freely interchangeable therewith,
and are* identical in all respects

They are dated February. 1, 1944, and

bear interest from that date at t?>* rati of t*l/k percent per annum, payable on a
semiannual basis on September 15, 1944, and thereafter on March 15 and September 15
in each year until the principal amount becomes payable.

They will mature Septem­

ber 15, 1959, but may be redeemed at the option of the United States on and after
September 15, 1956, in whole or in Part, at par and accrued interest, on any in­
terest day or days, an 4 months’ notice of redemption given in such manner as the
Secretary of the Treasury shall prescribe. * In case of Partial redemption the bonds
to be redeemed will be determined by such method as may be prescribed by the Secre­
tary of the Treasury.

From the date of redemption designated in any such notice,

interest on the bonds called for redemption shall cease.
2.

The income derived from the bonds shall be subject to all Federal taxes,

now or hereafter imposed.

The bonds shall be subject to estate, inheritance, gift

0-r 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.

3.

The bonds will be acceptable to secure deposits of. public moneys.

They

will not be entitled to any privilege of conversion.
4«

Bearer bonds with interest coupons attached, and bonds registered as to

principal and interest, will be issued in denominations of $500, $1,000, $5,000,
$10,000, $100,000 and $1,000,000.

Provision will be made for the interchange of

bonds of different denominations and of coupon and registered bonds, and for, the
transfer of registered bonds, under rules and regulations prescribed by the Secre
of the Treasury.

Except as provided in Section I of Department Circular No. 730,

these bonds .may not, before September 15, 1946, be transferred to or be held by
commercial banks, which are defined for this ourpose as banks accepting.demand deposits; however, the bonds may be pledged as collateral for loans, including loans
by commercial banks, but any such bank' acquiring such bonds before September. 15,
1946, because of the failure of such loans to be paid at maturity will be required
to dispose of them in the same manner as they dispose .of other assets not eligible
to be owned by banks.
5.

Any bonds issued hereunder which upon the death of the owner constitute

part of his estate, will be redeemed at the option of the duly constituted repre­
sentatives of the deceased owner’s estate, at par and accrued interest.to date #f
payment,— provi ded:
(a)
(b)

that the bonds were actually owned by the decedent at the time of his
death; and
that the Secretary of the Treasury be authorized to apply the entire
proceeds of rederrmtion to the payment of Federal estate taxes.

Registered bonds submitted for redemotion hereunder must be duly assigned to "The
Secretary' of the Treasury for redemotion, the proceeds to.be paid to the Collector
of Internal Revenue at ___________________ for credit on Federal estate taxes due
I. An exact half-year s interest is computed for each full half-year period irre­
spective of the actual number of days in the half year.' For a fractional part of
any half year, computation is on the basis of the actual number of days in such
nail year.

- 4 from the estate of _______ ____________ .”

Owing to the periodic closing of

the transfer books and the impossibility of stopping payment of interest to theregistered owner during the closed period, registered bonds received after the
closing of the books for payment during such closed period will be paid only at,.,
par with a deduction of interest from the date of payment to the next interest
payment date!»*

bonds received during the closed period for payment at a -date

after the books reopen will be paid at par plus accrued interest from the reopen­
ing of the books to the date of payment.

In either case checks for the- full six

months’ interest due on the last day of the closed period will be forwarded to .
the owner in due course.

A H bonds submitted must be accompanied by Form PD 1782,2

properly completed, signed and sworn to, and by a certificate of the appointment
of the personal representatives, under -seal of the court, dated not more than
six months prior to the submission of the bonds, which shall show that.at the
date thereof the appointment was still in force and effect.

Uoon payment of the

bonds appropriate memorandum receipt will be forwarded to the representatives,
which will be followed in due course by formal receipt from the Collector of
Internal Revenue,

life
6.

Except as provided in the preceding paragraphs, the bonds will be sub­

ject to the general regulations of the Treasury Department, now or hereafter pro­
scribed, governing United States bonds.
III.
1.

SUBSCRIPTION AND ALLOTMENT

Subscriptions will be received at the Federal Reserve Banks and Branches

and at the Treasury Department, Washington.

Banking institutions generally may

submit subscriptions for account of customers, but only the Federal Reserve Banks

2. The transfer books are closed from February 16 to March 15, and from August 16
to September 15 (both dates inclusive) in each year,
2i* Copies of Form PD 17$2 may be obtained from any Federal Reserve Bank or from
the Treasury Department, Washington, D. C.

■5 and the Treasury Department- are authorized to act as official agencies.
2,

The Secretary of the Treasury reserves the right to reject any subscription*

in whole or in part, and to close the books as to any or all subsc,'*ptions at any.
time without notice; and any action he may take in these respects shall be final.
Subject to these reservations, all subscriptions will be allotted in full.

Allot­

ment notices will be sent out promntly upon allotment.
IV.
1.

PAYMENT

Payment at oar and accrued interest from February 1, 1944, for bonds allotted

hereunder must be made or completed on or before March 1 5 , 1944, or on later allot­
ment.

Payment of the principal amount may be made only in the bonds or notes to be

exchanged, which will be accepted at par, and should accompany the subscription,
Accrued interest on the securities surrendered will be credited, and accrued inter­
est on the new bonds from February 1, 1944, will be charged, as shown in the table
at the end of this circular.

Where the table shows that an amount will be collected

from the subscriber, the remittance should accompany the securities and subscription.
Where an amount is to be paid to the subscriber, it will be paid, in the case of
coupon bonds and notes, following their acceptance, and in the case of registered
bonds, following discharge of registration.

Interest accrued on the securities to

be exchanged, and on the new bonds to be issued, will be adjusted as of various
dates as follows:
Securities to be exchanged
Treasury Notes of Series B-1944
FFMC Bonds of 1944-64 ........
RFC Notes of Series W . . . . .
Treasury Bonds of 1944-46 . . .
HOLC Bonds, Series A 1944-52. .
FFMC Bonds of 1944-49 ........
Treasury Notes of Series A-1944

2.

Date of adjustment
March 15, 1944
March 15, 1944
March 15, 1944
April 15, 1944
May. 1, 1944
May 15, 1944
March 15 or June 15, 1944,
as the holder may elect and
specify?- in his subscription.

Holders of Treasury Notes of Series B-1944 and FFMC Bonds of 1944-64 will

detach coupons dated March 15, 1944, and cash them when due. .With respect to the
other five issues, all unmatured Qouoons, including the one next due, must be attached

-

4

-

to the securities to be exchanged when they are surrendered, and final interest on
these securities,•• and on .registered bonds in all cases, will be paid or credited in
a net amount.
V.
1.

SURRENDER OF CALLED BONDS

Coupon bonds.-Treasury „.Bonds of 1944-46, HOLC Bonds of Series A 1944-52,

FFMC Bonds of 1944-49 and FFMC Bonds of 1944-64 in coupon form tendered in payment
for bonds offered hereunder should be presented and surrendered with the subscrip­
tion to a. Federal Reserve Bank or Branch or t o .the Treasurer of the United States,
Washington, D. C.

Coupons dated April. 15, 1944, May 1, 1944, May 15, 1944, and

September 15, 1944, respectively, and all coupons bearing subsequent dates, should
be_attached to such bonds 'when surrendered, and if any such coupons are missing,
the subscription must be accompanied by cash payment equal to the face amount of
the missing coupons.
holder.

The bonds must be delivered at the expense and risk of the

Facilities for transportation of bonds by registered mail insured may be

arranged between incorporated banks and trust companies and the Federal Reserve
Banks, and holders may take advantage of such arrangements when available, utilizing
such incorporated banks and trust companies as their agents.
%.

Registered bonds.-Treasury Bonds of 1944-46, HOLC Bonds of Series A 1944-52,

FFMC Bonds of 1944-49 and FFMC Bonds of 1944-64 in registered form tendered in
payment for bonds offered hereunder should be assigned by the registered payees or
assignees thereof, in accordance with the general regulations of the Treasury
Department governing assignments- for redemption, d n one of the forms hereafter
set forth, and thereafter should be presented and surrendered with the subscription
to a Federal Reserve Bank or Branch or to the Treasury Department, Division of
Loans and Currency, Washington, D. C.
and risk of the holder.

The bonds must be delivered at the expense

If the new bonds are desired registered in the same name

as the bonds surrendered, the assignment should be to "The Secretary of the Treasury

- 7 for exchange for Treasury Rands of- 1956*-59w ; if the xwftr bonds are- desired regis­
tered in another name, the assignment should be to HThe Secretary of the Treasury
for exchange for Treasury Bonds of 1956-59 io. the name- of _____________ _______ M j
if new bonds in coupon form are desired, the assignment should be to "The Secretary
of the Treasury for exchange for Treasury Bonds of .1956-59 in coupon form to be
delivered t o _____ . ,.** •*

Vi.
1/ '' As fiscal' agents of thellnitpd

fwwsims

...

.

Ffderal Reserve'Banks are authorized

and requested to'receive subscriptions, to make allotments, on the'basis and up-:to
the„amounts indicated by t h e ’$#qpptary of -tb#■.Treasury to thé fédéral Reserve Banks
of the respective Districts, tq

notices., to receive’payment for

bonds allotted, to make delivery qf bond# on full-paid subscriptions allotted, and
they may issue interim receipts pending delivery of the definitive«bonds*
2.

The Secretary of the Treasury may a‘
t any time, or from time to time, pre­

scribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the 'Federal Reserve Banks..

HENRY MORGENTHAU, JR.,
Secretary of the- Treasury.

- 8 -

TABLE OF INTEREST ADJUSTMENTS PER' $1,000 IN CONNECTION WITH-EXCHANGE OF
VARIOUS BONDS AND NOTES FOR 2-1/4% TREASURY BONDS OF 1956-59, DATED
FEBRUARY 1 / 194 /4, UNIERbSPAKTMENT CIRCULAR NO. 735
'

SECURITIES SURRENDERED

Accrued interest to be
credited on
securities sur­
rendered

Accrued inter­
est to be
charged on
bonds issued

Net amount
to be paid
to sub- :
scriber

Net amount
to be col­
lected from
subscriber

Exchange as of March 1$, 1944
..1$ Treasury Notes, Öertes
B-1944
3t% FFMC Bonds of 1944-64 in
coupon form
■ 3^fo FFMC Bonds of 1944-64 in
registered form
1% RFC Notes* Series W
3/4% Treasury Notes, Series
A—1944
’ •' •

12*65797

A

U 1';

■ — — **»

2.65797

A

—

116.25
4*15301

2 .6 5 7 9 7
2.65797

1.86473'

2.65797

II 3 .592 O3
1.49504
- -

12*65797
2.65797
w
— - —
.79322

Exchahge aS of April 15» 1944
Treasury Bonds of 1944-46

16.25

4.55335

11.69665

Exchange as of May 1, 1944
3% HOLC Bonds, Series A 1944-52

15.00

5.53161

9.46839

----- ,|*

Exchange as of May 15» 1944
3% FFMC Bonds of 1944-49

15.00

6.38759

8.61241

- - -

3.75

8.28297

—

.&

Exchange as of June 15» 1944 :
3/4% Treasury Notes, Series
A—1944

4.53297

IT FILL BE NOTED THAT THE HOLDER OF THE SECURITIES TO BE EXCHANGED WILL BE PAID
OR CREDITED WITH INTEREST AT THE. RATE BORNE BY THOSE SECURITIES, TO THEIR RESPEC­
TIVE MATURITY OR REDEMPTION DATES, EXQEFT IN THE CASE OF THE RFC NOTES AND, AT
THE HOLDER’S OPTION, THE TREASURY NOTES OF SERIES A-1944.

UNITED STATES OF AMERICA
1-1/2 PERCENT

¿ M 8

OF SERIES 1-1948

Dated and bearing interest from March 1$, 1944

Due September 15, 1948

Interest payable March 15 and September 15
i

.

v't* ■

%

■

I

| ®

3

x944 ;
Department .Circular No. 736
___*.
.Fiscal Service
Bureau of the Fublic Debt

|

•

i

. ‘

• |

•

_

I.
1.

,

,TREASURY DEPARTMENT,
Office of the Secretary,
\
Washington, -March 2, 1944» *

,
EXCHANGE OFFERING OF NOTES

^ ,

The Secretary of the Treasury, pursuant to the authority of the Second

liberty Bond Act, as amended, invites subscriptions, at par with adjustments- ,#f
accrued interest as shown in the table at the end of this circular, from< the people
of the United States for notes *£ the United States, designated 1-1/2 percent Treas­
ury Notes of Series A-1949, in j

o

f

phfch any of the following listed securi­

ties, singly or in combinations aggregating. #1,000 or multiples thereof, may be tendered.
Treasury issues:
1% Treasury Notes of Series B-1944, maturing March 15,' 1944
3-1/4$ Treasury Bonds of 1944-46, called for redemption On April 15, 1944
3/4$ Treasury Notes of Series A-1944, maturing June 15, 1944
Federal Farm. Mortgage Corporation issues:
3-1/4$ FFMC Bonds of 1944-64, called for redemption on March 15, 1944
3$ FFMC-Bonds of 1944-49, called for redemption on May 1 5 , 1944
Reconstruction Finance Corporation issue:
1$ RFC Notes of Series W, maturing April 15, 1944
Home Owners1 Loan Corporation issue;
3$ HOLC Bonds, Series A 1944-52, called for redemption on May 1, 1944
The amount of the offering under this circular will be limited to the amount of the
above-listed bonds and notes tendered and accepted.

In addition to the offering

under this circular, holders of any of the securities listed, other than commercial
banks, which are defined for this purpose as banks accepting demand deposits, are
offered the privilege of exchanging all or any part of such securities for 2-1/2
percent Treasury Bonds of 1965-70 or for 2-1/4 percent Treasurj? Bonds of 1956-59,

2
which offerings are set forth in

lit Circulars Nos. 734 and 735, issued

simultaneously with this circular.
IX*
1.

DESCRIPTION OF NOTES

The notes will be dated W$p®k 15#.1944, and will bear interest from that

date at the rate of 1-1/2 percent per annum, payable semiannually on September 15,
1944, and thereafter on March 15 and September 15 in each year until '-the principal
amount becomes oayable.

They w||| mature September 15# 1948, and will not be sub­

ject 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, inheritance, gift

or other excise taxes, whether Federal or State# bi^t shall be exempt from all taxa­
tion 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 accepted at par during such time and under such rules

and regulations as shall be prescribed or approved by the Secretary of the Treasury
in payment of income and profits taxes payable at the maturity of the notes.
4-

The notes will be acceptable to secure.deposits of public moneys,

5.

Bearer notes with interest coupons attached will be issued in denominations

of $1,000, $5,000, $10,000# $100,000 and $1,000,000.

The notes will not be issued

in registered form.
6.

The notes will be subject to the general regulations of the Treasury Depart­

ment, now or hereafter Proscribed, governing United States notes.
III.
1.

SUBSCRIPTION AND ALLOTMENT

Subscriptions will be received at the Federal Reserve Banks and Branches

and at the Treasury Department, Washington.

Banking institutions generally may

submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are’authorized to act as official agencies.

■- 3 2.

The Secretary of the Treasury reserves the right .to reject any subscrip-

tion, m

whole or m

part, and to close the bo^ks as to any or all subscriptions

at any time without notice^ and any action he may take in these respects shall be
final.

Subject to these reservations, all subscriptions will be allotted in full.

Allotment notices will be sent out promptly upon allotment.
IV.
' 1.

PAYMENT

Payment at par and accrued interest, if any, for notes allotted hereunder

must be ma'de or completed on or before March 15, 1944, or on later allotment.

Pay­

ment of the principal amount may be made only in the bonds or potes to be exchanged,
which will be accepted at par, and should accompany the subscription.

Accrued

interest on the securities surrendered will be credited, and accrued interest on
the new notes from March 15, 1944, will be charged, as shown in the table at the
end of this circular.

Where an amount is to be paid to the subscriber, it will be

paid, in the case of coupon bonds and notes, following their acceptance, and in the
case of registered bonds, following discharge of registration.

Interest accrued

on the securities to be exchanged, and on the new notes to be issued, will be
adjusted as of various dates as follows;
Securities to be exchanged

Date of adjustment

Treasury Notes of Series B-1944 . . , March 15, 1944
FFMC Bonds of 1 9 4 4 - 6 4 .............. March 15, 1944
HFC Notts of SeriesW . . . . . . . . March 15, 1944
Treasury Eauds of 1944-46
April 15, 1944
HOLG Bonds,. -Series A 1944-52. . . . . May 1, 1944
PFMC Bonds of 1944-49 .............. May 15, 1944
Treasury Notes of Series A-1944 . . .March 15 or June 15, 1944,
as the holder may elect and
specify in his subscription.
2*

Holders of Treasury Notes of Series B-1944 and FFjjiC Bonds of 1944-64 will

detach coupons dated March 15, 1944, and cash them when due.'

With respect to the

other five issues, all unmatured coupons, including the one next due,' must be
attached to the securities to be exchanged when they are surrendered, and final
interest tn

- 4 these securities, and.on registered bonds In all cases, will be paid.,or credited ijj,
a net amount#

f
V#

1#

SURRENDER OF CALLED BONDS. .

.

Coupon bonds»-Treasury Bonds of 1944-46, HOLC Bonds of Series A 1944-52,•

FFMC Bonds of 1944-49 and FFMC Bonds of 1944-64 in coupon form tendered in payment
for notes offered hereunder should be presented and surrendered with the subscrip­
tion to a Federal Reserve Bank or Branch or to the Treasurer of the United.States,
Washington, D# C,

Coupons dated April 15, 1944, May 1, 1944, May 15, 1944, and ■

September 15, 1944, respectively!, and all coupons bearing, subsequent dates., should
be attached to such bonds when surrendered, and if any such coupons are missing,
the subscription must be accompanied by cash payment equal to the. face amount of
the missing coupons#
holder.

The bonds must

delivered at the expense and risk of the

Facilities for transportation of bonds by registered mail insured- may be

arranged between incorporated banks and trust companies and the Federal Reserve
Banks, and holders may take advantage of such arrangements when available, utiliziig
such incorporated banks and. trust companies as .their agents#
2.

Registered bonds .-Treasury Bonds of 1944-46, HOLC Bonds of Series A 1944-52,

FFMC Bonds of 1944-49 and FFMC Bonds of 1944-64 in registered form tendered in pay­
ment for notes offered hereunder should be assigned by the registered payees or
assignees thereof, in accordance with the:general regulations of the Treasury De­
partment governing assignments for redemption, to "The Secretary of the Treasury
for exchange.for Treasury Notes of Series A-1948*to be delivered to _____________",
and thereafter should be presented and surrendered with the subscription to a
Federal Reserve Bank or Branch or to the freasury Department, Division of Loans and
Currency, Washington, D,.C#
of the holder#

The bonds must be delivered at the expanse and risk

--

VI.
1.

GENERAL PROVISIONS.

As fiscal agents of the TJhlted States, Federal Reserve Banks are

authorized and requested to receive subscriptions, to make allotments oh'"th&' 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 delivery of notes on full-paid subscriptlons:
allotted, and they may issue interim receipts ponding delivery of .t>v 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 offering,
which will be communicated promptly to the Federal Reserve Banks.

HENRY MQRGENTHAU, JR,,
Secretary of the Treasury

ADJUSTMENTS PER Si ,000 IN CONNECTION WITH EXCHANGE OF
IM±gn3_B0NPS AND NOTES FOR \ - \ T H 'TREASURY NOTES OF SERIES'A-194P.
M T E D MARCH 15, 1944, UNDER DEPARTMENT CIRCULAR NO. ~736
“’

SECURITIES SURRENDERED

Accrued in­
terest to be
credited on
securities
surrendered

Accrued in­
terest to
be charged
on notes,
issued

Net amount
to be paid
to sub­
scriber

Net amount
to be col­
lected from
subscriber

Exchange as of March 1$, 1944
1% Treasury Notes, Series
B-Ï944
3\% FFMC Bonds of 1944-64 in
couoon form
3i% FFMC Bonds of 1944-64 in
registered form
1$ RFC Notes, Series W
3/4$ Treasury Notes, Series
A-1944

$16.25
4*15301

$16.25
4 .I530 I

1.86475

1,86475

Exchange as of April 15, 1944
3h% Treasury Bonds of 1944-46

16.25

$1,26359

14,98641

15.00

1.91576

13.08424

15.00

2.48641

12 .5 1359

Exchange as of May 1, 1944

3% HOLC

Bonds, Series A 1944-52

Exchange as of May 15, 1944
3$ FFMC Bonds of 1944-49
Exchange as of June 1 5 , 1944
3/4$ Treasury Notes, Series
A-1944

3.75

3.75

ll
BE M0TSD THAT ™
HOLDER OF THE SECURITIES TO BE EXCHANGED WILL BE PAID
OR CREDIT® WITH INTEREST AT THE RATE BORNE BY THOSE SECURITIES TO TFEIR^RESPECO T E MATTTR I ^ OR REDEMPTION DATES, EXCEPT IN THE CASE OF THE RFC NOTES AND AT
THi HOLDER'S OPTION, THE TREASURY NOTES OF SERIES A-1944.
’

FOB IMMEDIATE RELEASE,
February 29. 1944«,
r -------

i£o-fA
»/

The Bureau of Customs announced today prelim inary figu res shoving the
q u an tities of coffee authorized fo r entry fo r consumption under the quotas
f o r the 12 months commencing October 1 9 1943* provided fo r in the I n te r American Coffee Agreement* proclaimed by the President on April 15* 1941* as
follow s!

Country of Production

•
$
s

Qpota Quantity
(Pounds) X /

:
!

Authorized fo r entry
fo r consumption
* As of (Bate)
!
(Pounds)

Signatory Countries!
B ra z il
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
H aiti
Honduras
Mexico
Hicaragua
Peru
Venezuela
Hon-Signatory Countries!

1/

1 ,3 5 3 ,1 8 3 .4 8 0
458*336*340
29*100,720
11,640*288
1 7 ,4 1 8 ,1 0 4
2 1 ,8 2 5 ,5 4 0
8 7 ,3 0 2 ,1 6 0
7 7 ,8 4 4 ,4 2 6
4 0 ,0 1 3 ,4 9 0
2 ,9 0 9 ,6 7 5
6 9 ,1 1 4 ,2 1 0
28,373*202
3 ,6 3 7 ,5 9 0
6 1 ,1 1 1 ,5 1 2
51,653*778

Feb, 1 9 , 1944
it .
n
H
H

«
H
H
ft
It

R
If
ft
ft
ft

4 0 0 ,3 4 2 ,0 9 2
2 1 0 ,894,942
4 ,2 4 6 ,2 0 4
2 ,7 1 7 ,0 8 1
6 ,8 3 7 ,2 0 2
13*951,930
2 4 ,2 7 1 ,8 2 2
2 9 ,8 1 1 ,5 8 7
9*049,637
2 ,0 2 1 ,2 2 6
25*950,037
1 ,7 3 9 ,7 3 3
1 ,0 5 1 ,7 8 2
17,272*355
3,2 0 3 ,5 0 8

Qjaotas as establish ed by a ctio n of the Inter**Ameriean Coffee Board on
January 12* 1944,
oOo-

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesdayt March 1« 1944

Press Service
No, 40-95

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 lf 1943, provided for in the InterAmerican Coffee Agreement, proclaimed by the President on April 15, 1941,
as follows!

Country of Production

!
!
1♦

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:

1,353,183,480
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

Feb, 19, 1944
h

H
II

1»
It
II
II

1»
It
It
II
It
II

II

400,342,092
210,894,942
4,246,204
2,717,081
6,837,202
13,951/930
24,271,822
29,811,587
9,049,637
2,021,226
25,950,037
1,739,733
1,051,782
17,272,355
3,203,508

Quotas as established by action of the Inter-American Coffee Board on
January 12, 1944,

oOo

1

!*Americans, you ALL have done a splendid job. We are going to count on
jrou again, in the F ifth War Loan, and © specially on yon m illions o f volnnteers
who went to work on the Third War Loan mad again in the Fourth* Ton a re now
a seasoned organ isation . Tour top leadership has hed the experience of two
successfu l war lo a m , and v ir tu a lly the sane group of leaders la the
S ta te committees and in Washington w ill remain. We<11 a l l he on the joh
with increased enthusiasm. Band, in hand, we have won a major b a t tle here
on the home fro n t. Wow th at the ob jective of the Fourth War Loan Drive has
been reached, i t i s up to us to carry on, doing the same kind o f hood
work. W© oust keep fig h tin g ‘ over here* ju st as sour boys keep fig h tin g
•over th e re *, fe must keep buying

fa r Bonds — more and more f a r Bonds —

between war loan d riv es. We must continue to ’Back the A tta ck .* #
« *o « *

/'

'

The Job 141 d out for the five m illion, the Secretary w ill point out,
not only called for the eale of fourteen b illio n dollar® worth o f bonds
hut also required that they he sold In the right places, with large
investors limited in th e ir purchases and en$>haeia laid on sales to the
public a t large*
*X can report tonight that these fiv e m illion volunteers succeeded
V

■

'/

,

in th eir assigBMent^wBiyrrrifm^sdi sa wwwwy— nntffP the Secretary w ill say*
.e Araeri«
b etter than ever before.

“

ponded to the Fourth War Loan Drive
the *people* s Bond* — the 1 Bond.

In that way they are fighting a •people1« war* * **
Be w ill reca ll the stead ily increasing numbers of separate fa r Bonds
sold in each of the four drives to date, and w ill

observe) "This is

a remarkably clear picture o f the growth of public in terest in the war, and
an inspiring demonstration o f the people*s desire to back the attack — to
help figh t the enemy — to make th is truly a ’people* s war* * *
In addition to the sincere, unselfish, p a trio tic cooperation of the
fiv e m illion volunteers, the Treasury had the same kind o f cooperation,
the Secretary w ill «ay, from American business, large and email, and from
American labor and American management*
The Secretaiy w ill extend his personal thanks to every individual worker
to each county and S^ats chairman, and to the national director of the
War Finance Division, Ted ft* Gamble. Be w ill concludes

a

' dost of raisin g the b illio n s which the drive yielded will
be revealed

Jf

e Secretaryf Be ■w.lU..,.deael»ii,h» it*

rfiiiirmnniiiiiii l m

r ill c a ll attention to the fa c t that «hareas In terest rates
mounted steadily fo r successive loans of World War I , thsy have remained stable
for the incomparably greater loans of the present e r i e is .J }
^ D a rin g th is war, fighting money has been the one stable commodity,* he
w ill say. »The average rate on the secu rities we have been sellin g is
about

one and three-fourths percent, and American« continue to bur them in

ever-increasing amounts a t that tame rate o f in te re st**
»Five Million F a triu | ^

•

the radio program la which the

Secretary w ill take p art^ H j has been prepared a» a public acknowledgment,
in the Secretary*« words, »to every American who sold a bond and to every
American «ho bought a bond.*

The five m illion patriots

A

the public spirited volunteer salesmen and saleswomen — »the batcher, the
baker and the esmWHMc candlestick maker* — who en listed under the banner
of the Treasury's War Finance »1vie ion fo r the gigantic task of putting the

in a music-drama which w ill highlight Secretary Morgenthau*« report,
the story of how the five million patriots worked — where they caste from —
why they volunteered fo r the job — w ill be inepiriagiy told , with Frederic
March acting as narrator* In the course of th is part of the program, Secretary
Mfjrgenthsu will interview typical bond-selling volunteers H M i in various
«actions of the country.

r - vdspsrft,. a£~p.
fHSASBBY 3B3PABTMHSHT
Washington

FOB 8ILIASB, uom nm HBfSPAPSRS
Thursday. March 2. 1944

.

Press Service
^ -fh

«10 home front w ill he cited for valor V Secretary of the Treasury
Korgenthau tonight. Speaking over the Blue network at 9t30 P.W., the Secretary
w ill inform hie countrymen that in the la te st cru cial te st of th eir wartime mettle
the y0urth fs r Loan Drive — they case o ff with colore flying h i # .
The Secretary*s statement» termed a «report to the people«, w ill

give

closing figures on the resu lts of the drive. The fin a l compilation necessarily
was delayed u n til f u ll data reached the Treasury from a l l 75,000 of the
Fourth l^an*s bond ou tlets — a l l State committees, hanks, fa cto rie s,
stores, theaters and other, se llin g points.
The Secretary*s accounting w ill reveal that quotas for hoth over-all
sales and sales of Series $ fa r Bonds were oversubscribed. He w ill pay tribute
to the surging patriotism of people the country over which made these results
possible.
The Loan was a fin er public demonstration of support for our fighting
men, the Secretary w ill say, than wad recorded in any of the three e a rlie r
war-financing c a lls on the American pocketbook. He w ill sfress the fa ct that
the Treasury continued in the Fourth Loan to rely on a purely voluntary
response to the Government*s needs and that once more th is policy ww f l s i l s r l s f

.jjaAwuaif ..
hand buying
American

<rjfr*

proved successful*« he w ill t e l l the n atiop ^ ^ lf a

sompulsory savings systA'^iMl^benn adopted during
to get the 18 b illio n s the people voTbaiagi

su fficien t s ite

unscribed during la s t year, the

Treasury would have had to co lle o tjirlfe the Americkn^j^ople two and ons half
times as much as they p ^ T ln Federal income taxes. The result*%pf every
succes ive bond drive stand as dramatic proof of the fa ct that Americanism
anxious to do every wartime .Job th at has to be done«*

TREASURE- DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Thursday, March 2, 1944«

Press Service
N°• 40-96

The home front will be cited for valor by Secretary of the Treasury
Morgenthau tonight» Speaking Over the Blue Network at 9 0 0 P»M», the Secretary
will inform his countrymen that in the latest crucial test of their wartime
mettle — the Fourth War Loan Drive — • they came off with colors flying high.
The Secretary’s statement, termed a ’’report to the people", will give
closing figures on the results of the drive. The final compilation necessarily
was delayed until full data reached the Treasury from all 75,000 of the
Fourth Loan’s bond outlets — all State committees, banks, factories, stores,
theaters and other selling points.
The Secretary’s accounting will reveal that quotas for both over-all
sales and sales of Series E War Bonds were oversubscribed. He will pay tribute
to the surging patriotism of people the country over which made these results
possible.
The Loan was a finer public demonstration of support for our fighting
men, the Secretary will say, than was recorded in any of the three earlier
war-rfinancing calls on the American pocketbook. He will stress the fact that
the Treasury continued in the Fourth Loan to rely on a purely voluntary
response to the Government’s needs and that once more this policy was
successful.
The "fantastically low" cost of raising the billions which the drive
yielded will be revealed, and the Secretary will call attention to the fact
that whereas interest rates mounted steadily for successive loans of World
War I, they have remained stable for the incomparably greater loans of the
present crisis. "During this war, fighting money has been the one stable
commodity," he will say. "The average rate on the securities we have been
selling is about one and three-fourths percent, and Americans continue to
buy them in ever-increasing amounts at that same rate of interest."
"Five Million Patriots"^ the radio program in which the Secretary will take
part, has been prepared as a public acknowledgment, in the Secretary’s words,
"to every American who sold a bond and to every American who bought a bond.
The five million patriots are the public spirited volunteer salesmen and
saleswomen — "the butcher, the baker and the candlestick maker" — who
enlisted under the banner of the Treasury's War Finance Division for the
gigantic task of putting the drive over.
In a music-drama which will highlight Secretary Morgenthau’s report,
the story of how the five million patriots worked — where they came from —
why they volunteered for the job — will be inspiringly told, with
Frederic March acting as narrator. In the course of this part of the program,
Secretary Morgenthau will interview typical bond—selling volunteers in various
sections of the country.

— JKfV

-

2

-

The job laid out for the five million, the Secretary will point out,
not only called for the sale of fourteen billion dollars worth of bonds
but also required that they be sold in the right places, with large
investors limited in their purchases and emphasis laid on sales to the
public at large.
"I can report tonight that these five million volunteers succeeded
in their assignment," the Secretary will say. ":The .American people responded
to the Fourth War Loan Drive better than ever before in buying the 'people’s
Bond' — » the E Bond. In that way they are fighting a 'people's war."'
He will recall the steadily increasing numbers of separate War Bonds
sold in each of the four drives to- date, and will observe: "This is
a remarkably clear picture of the growth of* public interest in the war, and
an inspiring demonstration of the people's desire to back the atta c k — to
help fight the enemy — *• to make this truly a 'people's war."1
In addition to the sincere, unselfish, patriotic cooperation of the
five million volunteers, the Treasury had the same kind of cooperation,
the Secretary will say, from American business, large and small, and from
American labor and American management*
The Secretary will extend his personal thanks to every individual worker,
to each county and State chairman, and to the national dire ctor of the War
Finance Division, Ted R. Gamble*.. He will conclude:
"Americans, you ALL have done a splendid job. We are going to count on
you again, in the Fifth War Loan, and especially on you millions of volunteers
who went to work on the Third War Loan and again in the Fourth. You are now
a seasoned organization. Tour top leadership has had the experience of two
successful war loans, and virtually the same group of leaders in the State
committees and in Washington will remain. We'll all be on the job with
increased enthusiasm. Hand in hand, we have won a major battle here on the
home front. Now that the objective of the Fourth War Loan Drive has been
reached, it is up to us to carry on, doing the same kind of good work. We
must keep fighting 'over here' just as our boys keep fighting 'over there1'.
We must keep buying War Bonds -**■» more and more War. Bonds — between war loan
drives. We must continue to 'Back the Attack.'"

0 O0

- 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.

-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 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

March 9. 19LL

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 tQ 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 (cfcher than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid

J U M

TREASURY DEPARTMENT
Washington

FOR RELEASE, MORNING NEWSPAPERS,
Friday f March ^ .1944-----

The Secretary of the Treasury, by this public notice, invites tenders
. 91 -day Treasury bills, to be issued
afe
~~TdST
on a discount basis under competitive and fixed-price bidding as hereinafter pro­
for

$1,000,000*000 » or thereabouts, of

vided,

March 9» 1944
» and will
-------- W ---------k
, when the face amount will be payable without

The bills of this series will be dated

June 8, 1944

mature

'/■'
interest.

is

|

si

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., Eastern War time,

IWffi

Monday, March 6, 1944

'

w

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 Bànks
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

TREASURY DEPARTMENT
Washington

POR RELEASE, •MORNING- NEWSPAPERS,
. .*:•Friday, March % 1944.

The Secretary of the Treasury, by this public notice,
invites tenders for $ 1 ,0 0 0 ,0 0 0 ,0 0 0 , or thereabouts, of 9 1 -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'March 9 , 1 9 4 4 , and will
■mature June 8 , 1944, when the cface amount will be payable with­
out interest, They will be issued in bearer form only, and in
denominations of ‘$>1 >0 0 0 , § 5 >0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 ,
and $ 1 ,0 0 0 , 0 0 0 (maturity value).
Tenders will be received at Federal. Reserve Banks and
Branches up to the .closing hour, two o ^ l o c k p.m., Eastern
War Time, Monday, March 6 , 1944» Tenders will not be received
at the Treasury Department, Washington.
Each tender must be
for an even multiple of $ 1 ,0 0 0 , and the price offered must be
expressed on the basis of 1 0 0 , 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
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
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 re­
jection 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 9 9 * 9 0 5 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
March 9, 1944.
40-97
(Over)

2
Thé 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 Pederal .tax»Acts now.or hereafter
enacted.
The bills shall be subject to estate, inheritance,
gift, or other excise taxes, whether Pederal 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,
Por 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 1 1 7
(a) (1 ) of the Internal Revenue Code, as amended by Section 1 1 5
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 differéhce 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.
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 nd
this notice, p r e s e 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 of their i s s u e ? - C o p i e s ' o f the c i r c u l a r
m ay be o b t a i n e d fro m a n y P e d e r a l R e s e r v e B a n k or. Branch. ■

—0 O0 —

fete of investors
millione^W da

i^eirt ner ship a,f‘
jr f ^ a n ie g ^
and personal
s * a n d mutual
trust aceoiurtB
savings bank s

Total . all
investors

corporations',
associations
and investors

I bondSy(l%rr
RMWCRM

F and G bonds
Savings not£s.
v safrfTicatejr

2-lMbpnds'

2-l>2^Wff
Brcrai

ytffiafgiiiiii I

3,187

K bon d s .....
F and 0 bonds
Savings notes

3.187

576

182

Certificates............
2-1/4$ bonds...........
2-1/2* bonds...........
Total

U96
516
353
5.309

rtSff

1,024

378
2,046

1,829
1,158
3 .W 3

2.232

401

5.036
3.331
1.920

7.585

16 ,730

3.931

828

mmmmmmarnrnt

Sales of Savings bonds and Savings notes included in this table since January
Figures are rounded and do not necessarily add to totals.
Less than $500,000.

1.

The Fourth Loan 1 Bond sales were »sixty million votes dfi contfidenee
in democracy and in democracy's way of doing business," the Secretary said
as he concluded his
in our nation —

JSSES

remarks, "They are sixty million shares

owned by the people! And every last one of those Bonds was

sold in a democratic way. Every One was bought in a democratic way.
They were sold without compulsion-- bought voluntarily. That is
democracy at work, w
preliminary
The Treasury issued the foliowing^summary of F0urth $ar Loan
subscriptions by issues and classes of investor^ cumulative to
February 29 1

2

Butchers, “
bakers and candlestickmakers teamed up by the thousands as
members of the Treasury^ volunteer bond-selling organization, the
Secretary related —

all of them engaged in ^selling freedom*s greatest

bargain.” He introduced and interviewed several typical salesmen and
saleswomen: A farmer of North Dakota, a Boston woman who headed bond sales
in the Massachusetts schools, a wounded veteran at Whiter Reed Hospital
in Washington, a war plant worker in Indianapolis.
J
Frederic March was narrator for a music-drama which
the Secretary^ remarks* Lines recited by-the narrator gave an
inspirational picture of the America of which our men in arms, huddled in
battlefront foxholes far from home, are wont to dream.
The data on E Bond sales for the four drives which the Secretary
gave were, summarized;
IT^rst Loan - sales $726-,000,000, number of bonds 19,000,000*
Second L0an - sales $1,473,000,000, number of bonds 32,500,000*
k

|
Third Lr>an - sales $2,472,000,000, number of bonds 52,500,000.-

! ir’

Fourth Loan - sales 3,
e of thpa^1j07£^,000

number of bonds 60,000,000.
fo n d s

as an express
a*

* * » g

yt

ft

of the will a/d the way for fpéedom!B, the Secrg^ary ^BmAÊÊàmdk Th^r are
lixtlj million shares in ojjr nation, ownedj^f the people. A^^Prery last
one of^hose Bonds waj^sold in a Deiggii^atic way* Evej^one was bought in
a pifmocratic wayj/They were soj^rwithout compulj^n.....bought
Voluntarily. JUtoaX is Demop^icy at work*”

TREASURY DEPARTMENT
Washington

Press Service
No, 1/0 - 7 f

FOR RELEASE AT 9:30 P,M,
Thursday, March 2, 1944

The American people answered the $14,000,000,000 call of the Fourth
War L0a.n Drive with purchases of Government securities totaling
, Secretary of the Treasury Morgenthau announced
tonight in a final report on the drive*« results. He said this total did

amounted to $ ^ / / » o ~ ® ~ * « s -■

additional*

Bie drive’s $3,000,000,000 quota for. sales of Series E War Bonds —
the ’’people’s Bond” —

also was exceeded^ the Secretary announced. Series E

sales for the period of the loan having reached $3,
,, * ■ * ■ *
<D) U
/ ÔJ /

sales in the First War Loan vmmm more than doubled in the Second, more than
tripled in the Third, and now had been more than quadrupled in the F 0urth.
The final figures revealed by the Secretary were based on closing
reports to the T r e a s u r y W M B M K g M
Loan*s

from all of the F 0urth

75,000 bond-issuing agencies. They were announced in a Blue Network

radio program, ’’Five Million Patriots11, in which the Secretary paid
tribute to the volunteer salesmen and saleswomen who put the drive over
so successfully.
Cooperation of American business, American labor and American
management as well as of the ’’five million patriots” was praised by
the Secretary, ’’The credit for the success of the Fourth War Loan Drive
goes to every American who sold a bond and to every American who bought
a bond,” he said.

‘»FIVE MILLION PATRIOTS"
The Blue NetworkMarch 2, 19A4
9i30 p*m*

Sec* Morgenthau:

This is H bnry Morgenthau , Jr*

Tonight, I am going to give

you t h e ‘final figures'on the Fourth War Loan drivef We
have heard now from all;75¿"000 of our bond outlets*

All

the places where bonds are sold - all the state committees
and banks and factories and retail stores and movie
theatres have rephrted,

And I am most happy to be able to

tell you that the results are most gratifying*
. ,

-

Tonight

r,

I want to tell you about those final figures, and what
they mean,
In this "Report to the People", I want to tell you the
story of the greatest of all war loan drives*

From the

very beginning, the voluntary system of bond-buying *.
the American imy - has proved successful,

Every successive

bond drive proves again that Americans are anxious to do
their wartime duty*
(Music)
Sec* Morgenthau:

The Fourth War Loan Drive’told one hundred and thirty-five
million Americans they had a job to do*

People at work **

people*at home *. people at war •* all were called upon
to do their share,

When Americans picked up their news­

papers, they read about the Fourth War Loan-Drive*- When
they turned oh their radios, they heard about it^

On

their way to work, they we re reminded of it by signposts

., ns
-

Sec, Morgenthau:
(Cont,)

2

and billboards,

j

-

The story came t o ■their doorsteps,

It

was told at Bond—booths and retail ¡^tqres, {

¿•fils*;,

;; _*$m • .h.«:.

,-And the helling ..of the story ,, like the selling of the
-".../*
**"‘'“|*** 1••: •|‘p
; bonds ,, was dn the.hands of the Treasury’s fwn volunteer
..organization, ...

From the start, it was my task to organize and build the
War-Bond selling group, state by state*. Thousands upon
.!• # r.‘ .
,.
thousands of public spirited Americans joined us to share
one of the greatest responsibilities of the war ,« the
raising of the money with which to fight the war,

1v

I am

proud to say that when the'Fourth War Loan Drive got under
rj
way more than five million volunteer War Bond salesmen were
marching under the banner of the Treasury Department’s War
Finance Division,

"'Five Million Patriots"1 .. who under-

••t. ■■
< ■ufr-'*</• *
'•.g|§&'*f..$j
took the tremendous task of selling fourteen billion dollars
worth of bonds.
Music:

* i
- f i . , i
Introduction to Music^-Drama

Note: The orchestra and chorus set the scene. In simple
language they tell,the story of the purpose of the Fourth
War Loan Drive, Frederic March will act as narrator,
•f. ;‘
»
’s' wCi*'j' . The fourteen billion dollar goal is set. Also in this
segment of music-drama we' tell a two-minute story of the
* •
' *>'•**»• *♦r-:- « ,
■».«Five Million. Patriots", We show how hard they work ,,
where they come from
why they volunteered to do this
job,.
.
Sec, ■Morgenthau:..

-American mothers took, time from their household duties ,,
fathers came Lome

work, ate their evening meal, and

•.went.out to work thru the night on the Fourth War Loan
drive ,, the boys and girls did their great share,

In

-Sec* MÉrgenthauí
(Conté)

every state ♦. in evfery county

in every city;, townj

• village: v v on every highway and along every bypath#

The

butcher, the baker and the candiestickmaker became sales­
men, selling freedom*s greatest bargain,

The Fourth

■' War Loan Drive was on its way t# the '•''Five -Million
Patriots"1-were an all-American team
•

patriots from all

f*- ‘ .;

walks of ;llfeV ‘Thè* worker in the factory - the farmer
■ - • ,i i * ■

in the fi,eld, •

*'*

($witchitO; North 'Dakota)
I Bénno i

My name .is Arthur ¥#' Benno,
West

v --, -•
I live out here in the mid-

in Aftom Township, North Dakota,

I am a farmer.

Yes,, and a pretty good bond salesman, too,

I homesteaded

_out, here more■than fifty years ago,’ Been here ever since.
We have -,a hundred and seventy-five people in our township
.. eighty-five families \ , all farmers.
War Loan Drive., I called on ’em all#

And during the Fourth
'Told ’em about bonds

and. why .they’d better be putting their money into the war,:

.ir: p p

,

/>

.

. i

They.1knew.;what»I was talking about because most of ’em have
sona in;ifoè -fight#- Boys that used to be around here ,• .
rand now.,,.Lord knows where, they are.

That’s why these

peopl.e ;in ,m y .;township came thru with an average of seventyseven:dollarà:and seventy-one cents for each man, woman
and .phiId..,

-.thirteen thousand> six hundred dollars in all.

But everyone: out -hère came thru,'

Not just the folks in

Aftom Township,* r-‘Nofth Dakota made 170 per cent of its
'"E"* Bond- quota# •Wind'We’ll do even better next time,

I g l ' " ,.':<a£3

-

Sec* Morgenthau:

- 4 -

‘ -Good work, Mr. Benno.

And .the women of America '—

too have done-their.great .share.

they

Here is'Mrs. Elinor

Heller of Boston, -Massachusetts, who headed the bond*'*' “

.•* ♦• •*'l

Mrs* Heller:

selling -organization .„in,-the -schools of her state.

■ * •* Mr. Secretary, in dozens ofrcommunities of Massachusetts,
the''schools made a concentrated effort to sell E Bonds durir
the'last few-days of the.Fourth Tar Loan.

I am proud of

the way those American boys.and girls met the opportunity
to serve" their country# ; They set up bond booths within thei
schools. .Honor students, faculty, and P.T.A.# members
gold, bonds- to parents and friends,
:*■' |

#;■!. B....

• --

1.

* l 4 ».

Only E Bonds were

issued in this' way and .only cash sales counted.

In

only three.<days, Boston school youngsters accounted for
$751,54-9 in War nonds, or the equivalent of 19,663
separate E. Bonds. \In Springfield, 3,700 individual E

_t

#■

v*

* ‘

Uonds were sold with ;a.-total issue value of $ 1 5 9 ,4.82 #
The parochial Schools of the Fall River Diocese accounted
for 25,000 individual E Bonds, totaling $476,343.

The

same story .was told .-throughout the state by all our school
{;J
7 * •*

** , p
,

#

children*

The story., of the. Americanism —

back- the attack
*-*•': ’-•■

*;\)

i

the desire to

that.lives in every heart of every

American ■'.#■ many (.woman or,-child.

SecV-Morgerithau:: •:• Thank'you,*Mrs; Llinpr -'Heller,
Music':

■’

♦

Music-Drama continues:.In this segment of music-drama
the narrator, the orchestra and chorus tell the story of
the E Bond , the:people’s.bond.
*>'*

•-' wwSil 158 ■

HR O

- 5 Sec* Morgenthau:

During the ^ourteen Billion Dollar fourth Yiar'Loan Drive,
five million patriots set out to sell three billion
dollars worth of L Bonds ,* to the people », to the man
in the street . . t o the worker in the factory.

Three

billion dollars worth .. that’s $2 3 .0 0 worth for every­
one of the hundred and "thirty five million men, women
and children in our land l A tremendous task —

calling

for' plenty of hard work on the part of vdldnteers all
over the country.
Sec. Morgenthau:

A determined man discovered America.
built ^America.

Determined men

Determination is born in our blood*

And, during the Fourteen Billion ■Dollar Fourth --War Loan
Drive, five million patriots determined to sell three
billion dollars worth Of * Bonds ..to the people

te

the man in the" street ... to the worker in the factory.
Three billion dollars worth ,. an average of $2 3 ,0 0
worth for everyone of the hundred and thirty million men,
women and children in our land.
(Bring in Indianapolis* Ind.)
Maetscki:

Mr. Secretary, my name is karl Maetscki,
in Indianapolis.,

I live here

Since Pearl Harbor I have spent all

my spare time working with a crew of one hundred men on
Payroll Savings,
cover.

We have seven hundred firms that we

Some of them have twenty—five employees .. some

have as many as twenty-five thousand.

All-told there are

about ninety thousand people in these plants.

Maetscki:
(Cont,)

These plants have established a fine payroll record —
over ten percent.

And- during'the Fourth war Loan Drive,

they invested nine million, two hundred thousand dollars
in extra war aond-s - over and above their regular Pay­
roll Savings Bonds,
Sec* Morgen than:

It certainly is.

Pretty good, isn’t it?

Did the rest of Indiana do as well,

as you did in;your seven hundred firms?
Maetscki:

Just about, Mr, Secretary,

Labor and management all

over fndianâ and all over America, for that matter,
backed the attack in the Fourth Jar Loan Drivé,
(Return to J e w York)
Sec* y.'Morg enthau :

The men in our Armed forces who are on the Payroll
Savings Plan

the men actually fighting the vtar —

regularly invest morè than fifteen per cent of their pay
in War Bonds,

They invest many millions of dollars more

in extra Bonds,
They know they have a tough fight on their hands

and,

in their determination to win this war, they are giving
themselves all the fighting-dollar support they can
musterJ

And during the Fourth War Loan Drive, they,

too, set high hew records in extra liar Bond sales;
(Switch to Tfalter Reed Hospital - Washington, D,C,)
Dixon:.

This is Corporal Fred Dixon speaking from Walter Reed
Hospital at the Army Medical Center in Washington*

I'm

out here with a good gang of fellows ,, m#st ^f us have
been over on the other side ., Italy and Africa

and,

■B

- 7 -

Dixon:
(Cónt i,) '

•between, the, bunch of us, I guess we could tell* you some
. ■ pretty,exciting stofies, • Most of us have had the tough

. ,

‘* ÌmÉ 1V‘l( ./ ;* ■ ^luck to get mixed up with German shells and grenades

• :JiX:-*r m fj

and thingsv

*f

I Ifgft both legs myself.

During the Fourth

War Loan Drive, I- took myself for a ride in my wheel- - chair and went around’to see the other boys,
to see how they felt abcrtit buying War ^onds,
, •** t.*:• ♦

I wanted
Most of

fi -us-already buy ’eirtou;t- of-.’
oiir regular pay,’ I sold
.«¿4.9,300 worth 'Of. extra bonds.

And if they’d had more

, :money to spend.>* 'they'd have bought more,
.
Sec, Morgenthauf
• ••

Switch to*’
.New fork)'-

'1

Soldier^ ,.,• American soldiers-'many of them wounded in
, netion

v.nre-buying bond's

these men, in their hospital

. cots.,.:.are .still, in •the fight .. still forging ahead
. tcwa-rd,victory #

keeping in'the battle by buying Bonds,

...They^a^e.American ., so they fight for freedom every
way they can fight. .-They are still fighting the same
.:fight«;asy their..buddies. -* tho^B Army men who wade thru
..., the* mud of-.Itdly. ,, -driving ■the Germans slowly but
r,; .surely to-.defeat, 'The Navy'men'whose guns roared
freedom's message tb the- JapS on the Island tf-Truk,

The

..Marines-,: the. Coasiguardsmen ;and the men of the Merchant
, Marine,■-> , •:.;:'. •** ■•’"-P
;The:Attack; of the-Armed Fbrces of the United States .,
V i is an attack, worth'.backing,- And, in just a few moments,
I will-hell you ¿..in dollars and cents, just how well
we backed that attack 'in the Fourth War Loan Drive *

~ - -8 -

Sec.* Morgenthau;
(*Cont)

• Hpw mu 9h closer- we haveriCome to helping our fighting
Ci men gain the .'reward they wasn't' the most •, that precious
— moment when they-shall know-^v" that freedom’s fight
is. won ... that# they are on their way •• back home

Chorus;

..

. North.-.-* South - East - West — Neath the flag that I
Ipv.e best Everything from sea to sea - is the U*S,A,
to me «

Narrator;

.

Everything from sea to sea — is the U*S.At to me.
To us at home America is something we see every day,
. We hear the street cars,

See the farmlands,

Touch

and feel the substance of the 'nation - without a thought
of what it really means,

But-what doe's G. I * ‘Joe’in

;Italy, Alaska, Greenland* or deep in the South Pacific
• tljink?

There are ten million 1Joes to dream ten million

dreams about th e .land for which they fight.

They dream

those faraway»boys in uniform; - They dream of their
kind of U,S,A«.
Music;. . .

Chtrus:

Ten million dreams, rolled into one Are ten

...million dreams, of.home*

Those'are the dream-drousy

footsetps that walk ;each night through darkness into city
..

'
■

homes and country homes, mountain cabins, farm —

those

; are.-the. ten -million hopes -who roam the land they love.
Narrator;

High Northeastward lies the winter thumb and all the
beauty -that is.New England*' Maine, with lakes and
waterfalls- — Rivers'tumbling,• forests weaving fantasies
of leaves: And 1limbs--Vermont,-New Hampshire, Connecticut,
New York — Mother place of dreams - fatherland of the
Nation

~ 9 ~

" ».1 '0jjÉÈv-’*11

Narratori
(Gont)

Thesè cimpose'the thoughts that millions if boys in
uniform are thinking now — tonight#

These winter—mantled

sìàtes are home for men to dream about - they think of
harb'ors all along that hostless coast, of ships their
fathers 'sailed of ports they visited as kids when summer
came.

»'%*•4»..

And where New England harbors end, .there lives

thè greatest harbor of them all — crowned by buildings
that are miracles.

Teaming, streamlined center of the

world'' - New fork#- ■
'- *
Voices:

’*

Have your fares ready - taxi taxi - follow green lights
to the' West Side Subway - ¿ 6th floor please - step
' aside please:Radio City - tour for a dollar Taxi Taxi Hey Taxi J

Narrator:

I A *T ’ B M !

Independent

Subway - Subway

Roaring, angry', shduting monsters, filled with shoving

• :♦|f§Ì

pushing humans, gates'that open, lights that, flash on,
IfS
push your way in, push your way out, Times Square, 23,
1A, Brooklyn —

Up town,'down town, midtown, cross town —

' faster', faster - got to' get home, I»m tired.
Yds, and' they’re plenty who dream of the city that means
the World to them
Chorus:,

that*s home.

Ten million dreams rolled into one are.ten million
' dreams of home♦

Music :
Narrator:

There are dheamers faraway who tip toe in the night to
towns and villages that still wear wounds of another war.
Fóòtstèps linger in the southern hills, where night
has laid a robe of silence and smells of dying hearth

-

Narrator :
(Cont)
t

10

-

fires hug the turns and curves of mountain sides.
Cities, proudly b|iilt, and proudly loved are. home to many
longing hearts abroad.

-Wide plantations, little farms,

tiny houses, shacks and river boats, rich and splendid
modern cities, mansions, swamp huts, barges, all are
homes - homes.for G,I. dreams tonight.
Chorus:

North - South - hast.- West - Neath the flag that I
love best Everything from sea to sea is the U,S,A. t«
me.

Narrator:

Between the sea and the sea thereflfws river — the
Mississippi - the mother - father of all waters.

..Chorus:
Narrator:

. 0 Mighty Missisippi
Rolling, driving, ponderous, heavy, timeless, ruthless
Mississippi.

She the Queen, draws all her subject

rivers to her breast, exacts the tribute of their flow.
Chorus :

0 Mighty Mississippi

Narrator:

Greedy, thirsty, sometimes angry, *ften soft and
sentimental - reaching from the Delta footstool high
into the wheatcrowned North, the proven mistress of a
land of woven waterways.

Ch*rus:

0 mighty Mississippi,

Narrator:

And all along the edges of the Mississippi are homes
that guys with guns and guts are thinking of tonight.

Chorus :

Ten million dreams rolled into one are ten million
dreams of home.

Chicago :

I am Chicago.

Hog-butcher' - meat-maker Lord of the

railroads Monarch of the Lake Cities — I am Cj^c^g^

- il -

Chicago:'
(Cont*^

•' "" "

''■■Gi*èÿ-ston:
ëd,"‘softr-héàrted, nóise-iTiaking stockholder #'f
: th'è"Middle ’West,
‘stôckyards

T own'tHé stôckyards - acres of

1 am' the meat packer - I am the feeder*

I oWh;parks ’and art museums, 1 own theatres - I ftwn temples
■h oli

L '■ ..... . ' ‘ 1 own •ten 'thoúsáhd 1stóne^made blocks of crowded'húman
i;1 ;,L •

belh^a# ,r"i'’,
^ m‘lth^''cítyifehat dards to be strong«

X am

:‘thé”máster‘1 kridw kindness - ‘Ï* know hardness - I am
:‘

••

'!

:

' :

'stòèlthdicter Of thé Middle West*
1'!
kïïd T ám the home "that the kid who has won wants to

~

•' cóme bacch iò'when his big job is done**

Chorus •

' North' - South - East - Wèst
T ’

'Southwest - Woûthwëst - Southwest

Narrator:

Arid ih the Southwest '^Oklahoma, Colorado, Arizona,Texas, Utah, Places where the cattle ranches reach into
the setting sun.' 'Cowboys ride on lonely cow trails
'♦
*

• . ’ T. ••. ir1*''* • ’*
bringing in' the 'Straggling‘doggie.

Deserts stretch

in' Endles s"wonder 'homeland for the Gentle xndian,
Thàt^s thè Southwest.
There'is'starlight in thè'West tonight.
«

Those little

'tovms ánd lonfely ranches' are' the stuff that dreams are
made of - when soldiers 'dream' of home.f *
■ • 'North, North, across 'the ceilirig of the Nation,
'
“■

Like

the states of singing' wheat, here' the modern peioneer
'■ still" meets the wind, his 'sons áre children of the summer

: «. -■ Smv his home'is harbor in the winter storm.

-

^ Wanrator :
(Cont)

12

-

Minnesota -. the ¡Dakotas,Nebraska and Wyoming .Iowa.-■ Montana -• Wide, and beautiful - wide and
,wonderful - home pf „homes, for millions the threshold

t

■

Narrator;

-,for a million, soldier ;drearns, 1
Up .from the Blue Pacific ;like a bright and fertile carpet
lifts the slope of California - rich in fruit and
agriculture•- rich in lore of ancient days*
..Up from the, .Blue Pacific, like -a story told in music
lifts the slope of Oregon drçss.ed in farms and lovely
towns jewels with sparkling laughing rivers up from the
Blue Pacific like a song of Paradise lifts the slope
of Washington, robed in the splendor of the forests carved
by.the sculpture, of the ocean*

And crowning, this.,, in

ageless splendor •- with brows of sunrcarved timeless
.rock, the majesty-of all.our nation, stand and watch .God of a Western WorldI

The Rockies l

Fashioned by

the Wind.and, weather — :they count not time - nor spa,ce
nor man - these are the fathers of Eterminty — these are
.the,silent gardens of .the; snow — these are the soundless
voices of .all time.

These are the Rockies, beyond the

name ff beauty,;
These are the symbols of our -strength - the God-made
fortress touching the floor of.Heaven as if to form
a covenant with him As if to; :say to us - Be strong *»
Be noble - for you and I are both America^

13

-

Narrator:

-

You have heard the dream of millions
those dreamers

—

— *

and. now,--unto

here, or there in distant places, we

bring them a report from their nation

..

the story of

how America at home is also America at war
fighting

-

-

working,

side by side, to preserve and protect the

nation for which we fight.
March :

Here is Secretary of the United States Treasury, Henry
j|

•
»< «**»•*

■• K

•i '■II |•/1•||( V#
.>-1v|g

>“ ■

; *>i •
•

Morgenthau, Jrt, v/ith the final report on the results
of the Fourth War loan Drive*
‘ ;. ' •

:. •

.* i

•‘v• •’ -.*•-

Sec. Morgenthau:
*v"

On January eighteenth, '"Five Million Patriots’'", many of

•J •
• i #

them veteran salesmen of other Far Loan Drives, went forth,
charged with the responsibility of raising fourteen
H

' i. .

%
.'*’••• t

v,

billion dollars for the war, thru the sale of Bonds*
And this, m»re than any other drive, was to be ’"The
People*s Drive’1"*

I can report tonight, that these

five million volunteers succeeded in their assignment.
For the American people answered the call of the Fourth
War Loan Drive with sixteen and a half billion dollarsl
Exceeding their goal by two and a half billion dollars*
: .... .

ft; ' ; . ' ■- .

All this has been done at an extremely low cost

-

thru

the sincere, untiring cooperation of the Treasury’s
organization of five million volunteers

**

and thru the

same kind of cooperation from American business
and small^

..

large

Thru the all-out cooperation of American

labor and American management*

•*. u -

Sec.* .M'orgenthaus
(Cont.)

...The. credit-for the success of the Fourth War. Doan Drive
goes to e/very American who bought a Bond ,. and to every
^American who wpld,'a oond

. npt; only the five million

'•volunteers.^ b u t .also .to •the seventy-five thousand
• •business firms, groups., merchants and individuals who
accepted the responsibility of becoming issuing agents*
L would like.•personally to thapk every individual worker .
vv¡ each :county -chairman _,, and each state chairman .. for
the splendid job you have done,

I also wish to thank

. a man who deserves particular recognition .*....the National
"Director of the bar Finance program ,, Ted A. Gamble,
Tie are.counting on all of you again for the Fifth War
. Loan^. --lou are:now a seasoned organization,

Virtually

the same group of leaders in the state committees and
•in-Washington wj.ll remain.

We'll all be on the job

•ready, to set.irev* records - ready to sell more Bonds to
more people..- especially '»E’l Bonds,
In the First War Loan:Drive, we sold
... dollars of

.Bonds,

726 million

In the Second Drive, the

■-people bought 1,4.73,000,000 rdollars worth.

In the

.. Third Drive, we. thought we viere doing mighty well by
*

*

.selling; -2,472,QQQ,jPCdollars .worth*
; .thing to. be. really happy about:

But, here is some-

Believe it or not,

.during-the Fourth. Lav Loan Drive, the American people
actually .invested 3,187,000,000
Bonds 1

.■| dollars in ’"E™

What’s more 4 * they bought and are continuing

to buy these bonds at one stable rate of interest,

r 15 -

Sec* Morgenthaui
(Cont)

During the First viorld War, loans were made at
successively higher rates of interest.

During the

*irst iforId Iuar, the average was about four and a quarter
per cent.

l‘his time, however, the average rate on the

securities we have been selling is about one and threequarters per cent.

And Americans are continuing to buy

them in ever-increasing amounts.
And, with every successive drive, more people are buying
Bonds.

During the First War Loan Drive, nineteen million

seperate series n'E"' Bonds were sold.
s old thirty-two and a half, million.
sold fifty—two and 3. half million.

The Second Drive
The Third Drive

And, during the

Fourth V/ar Doan Drive the American people set an alltime record by buying sixty million separate «Ettf BondsI
And every one #f those sixty million &onds stands as an
expression of the will and the way for freedom!

Those

sixty million votes of confidence in Democracy ,. and in
Democracy’s way of doing business.

They are sixty million

shares in our nation .. owned by the peoplel
And every last one of those Bonds was sold in a
Democratic way.

Everyone was bought in a Democratic way.

‘“‘old without compulsion

bought voluntarily!

That, my friends, is Donocracy at work.

-0G0-

- 14 Both the Bank and the Fund would have no other purpose
than to help create conditions under which the flow of
foreign trade and productive investment between member
countries «¿44- be fostered.

To the extent that we succeed

in creating an environment conducive to a high level of
commerce, the interests of all nations

be served.

Both projects are now in the area of technical discussion.
To set them up will require international agreement and
of course legislation which will put the full weight of
our Government behind them.
The problems involved are international in scope.
Our experience in the years between the two wars, when
countries attempted to deal with these questions independently,
must convince us that only through effective international
cooperation can they be solved.
— oOo—

- 13 To accomplish these purposes another international
agency is currently under discussion by the technicians
of the United Nations.

In this case the proposal Is for a

permanent International Stabilization Fund designed to
prevent undesirable currency fluctuations.

The Fund would

also have as a major function the removal of the monetary
restrictions on trade which developed during the depression
and the war.
Both functions are extremely important.

Monetary

stability does not mean that exchange rates will be pegged
for all time with no fluctuations permitted, but rather that
exchange rates must move only when essential to establish
orderly and stable patterns in accordance with changes in
the basic economic relationships.

The Fund would require

that member countries define their currencies in gold and
agree not to change these relationships, except to a very
moderate degree, unless the change had been approved by the
Fund.

In turn, the Fund would help member countries maintain

the value of their currencies.

Member countries would also

be prevented from engaging in competitive currency depreciation
and from imposing exchange restrictions, except for the
purpose of controlling undesirable capital movements.

-

channels.

12

-

It might also supplement the private capital

market by making loans itself if capital for productive
purposes was otherwise not obtainable.

In all of Its

operations, the Bank would lay great stress on the pro­
ductivity of the project to be financed.

While the Bank

would be interested in seeing adequate capital made avail­
able for productive purposes, it would encourage only
sound loans on which the borrower would be able to pay

:5

interest and principal.
The existence and operations of the proposed investment
Bank would be a powerful stimulus to the* revival of private
international lending and trade.
do the whole job alone.

It could not, however,

If private enterprise is to take

hold quickly, investors and traders must confidently expect
r

x

the restoration of stability and balance and a greater
degree of freedom in International economic relations.

There

must be explicit assurance that the monetary collapse which
followed the last war in many countries will not be permitted,
and secondly, that the restrictions which hampered trade
and the withdrawal of ¡earnings will be abandoned as quickly
a, possible.

I

11

-

-

11 also serve to discourage long-term lending.
Only with some assistance, therefore, can private
investors be expected to satisfy the unprecedented capital
requirements of the post war world.

An institution is

needed which can encourage private investors and share their
risks.

To meet this need the United Nations have begun

discussions which look forward to tie establishment of an
international agency designed to facilitate the extension
of long term credits.

A tentative plan for a Bank for

Reconstruction and Development has been formulated by the
technical staffs of the Treasury and other departments and
agencies of this government.
The proposed Bank would be a permanent inter-governmental
institution designed to encourage and aid international
investment through the usual investment channels.

It is

intended to make no loans or investments which can be made
by private investors on reasonable terms.

In those cases

in which borrowers could not secure loans for productive
purposes without aid, the Bank would guarantee the loans
made by private investors.

Where market conditions made it

difficult to secure all of the funds from private investors,
the Bank might participate in loans made through the customary

commercial banks and trading houses*

Industrialists and

foreign traders are already making plans to resume their
usual exports and to extend generous credits to their
customers*

It is also likely that there will be a rapid

resumption of direct investments in industrial exterprises
abroad in the form of subsidiaries and branch plants*
In addition, the world normally counts on a considerable
volume of long term credits to bring about a large and
balanced international trade*

As much as one-fourth of the

exports of the large industrial countries has been paid for
in ordinary times with funds provided through foreign in­
vestment*

In the post war period, long term credits will

also be required for reconstruction, for reconversion to
)

peace time

production, and for the development of economically

backward areas*
For many reasons it is unlikely that private investors
will provide an adequate supply of long term capital*

In

view of the losses suffered on foreign securities and the
restrictions imposed on the withdrawal of earnings in the
last decade before the war, private investors may reasonably
exercise considerable caution. The uncertain business
/
conditions which will undoubtedly prevail for a number of

/

/

»

'

After 1928, however, this last avenue for the acquisi­

tion of foreign exchange was virtually closed.

The attraction

\y

of our own stock market for the investment funds of
American and foreign investors was one of the reasons for
the pre-depression decline.

Unsettled political conditions

and the depression were responsible for the reluctance of
investors in subsequent years*

^

The result was a further

decline in the export markets of all nations.
Thus the problems we shall have to face after the war
are not merely those created by the war itself, but in
large part they are the heritage of the years of depression
and economic warfare which preceded it*

We shall face a

world disorganized, exhausted and in many areas devastated
by war.

The occupied areas and those which have been the

battlefields will require economic assistance on a tremendous
scale.

UNRRA, the International relief organization, will

provide for the most urgent needs, but relief will hardly
be sufficient in view of the devastation of Europe and the
thoroughness with which the occupied nations have been

plundered of machinery and other capital equipment.

Immed­

iate positive action will be necessary to prevent economic
stagnation and the social and
follow upon i t .

political unrest which would

^

For some-years after the war few countries will have
the surplus commodities which can be used to pay for imports.
Until such time as these nations can again make use of their
full productive capacity, extensive international credits
must be provided.

We may reasonably expect that the required

volume of short term capital will be made available by the

Public Bebt Obligations.

H.R. 669I

contributed to the flights from specific currencies which
were developing becj&se of the growingjaonetary instability,
The whole pattern of exchange relationships, so slowly
reconstructed after the last war, was endangered, and the
situation became one of serious monetary disorder.
In addition, another development took place which ihrthei
diminished the volume of world commerce.

Nations, if they

are to buy abroad, must pay for theinnurchases In one of
jf

three ways:

s

\

with gold and foreign exchange, or with money

obtained by selling their own products) in foreign countries,
HI

ft f

or with moneys obtained by borrowing.- Since no country is
able or willing to permit a gold outflow indefinitely and the
depression had considerably decreased the opportunities of
selling abroad, foreign loans and credits were very important
*

in determining the level of world trade.

solutions which do not so clearly lead to decreasing trade
and lower standards of living.
From the high tariff policies of the late boom years
until the outbreak of the present conflict, the major
countries were engaged in practices which seriously dimin­
ished the volume of world commerce and prosperity.

Politi­

cally, we were officially at peace during these years,
but economic warfare
no single country wa

1 ing waged continuously.

Although

ame, ail were short-sighted.

Nations attempted to achieve economic recovery at each
other’s expense.

By means of quotas, tariffs, exchange con­

trols, and competitive depreciation of currencies, countries
undertook to export unemployment.

These measures provided

temporary relief until the countries discriminated against
followed suit.

The volume of world trade declined rapidly

and all suffered.
Competitive exchange depreciation is an evil which
snowballs.

The actions of specific countries and groups

of countries in cutting the value of their currencies actions which often could not be avoided without help which
was not obtainable - created pressures on other countries to
do the same,

exchange dealers, understanding the incentive to

further depreciation, were encouraged to speculate and thus

-

6

-

be exported and so can depressions.

If we trade with other

lands we are to a considerable degree subject to economic
influences at work in them. We have a stake in world prospenty, in a general high levelrof well-being.

We have an

economic stake, and also a political one* for economic
pressures may and do produce political explosions.

If we

mean to avoid other world wars on the heels of this one we
must lose no time in building the economic foundations that
will make continuing world peace possible.
people have such great faith in the automatic
^mechanisms of economic life as to believe that no planned
overt action is needed for the restoration of international
trade, that the world will go back to the happy position of
some blessed year in the past if only left to the devices
of the individual business man.

Hopes such as these ignore

completely the experience so painfully acquired during the
decades between the two wars.
no nation can avoi<

Those years taught us that Q
^

the economic life and

trade of its citi&ens*. We can choose the economic warfare
of the 1^30 s, when uhe nations of the world undertook to
handle world trade and currency problems independently, or
we can benefit by this experience and lay our plans for

E

Considerations of direct and obvious seif-interest
thus dictate for us a policy of trying to open up and to
keep open to the maximum degree the channels of foreign
trade after the war. We can profit by exporting our special
skills and products and by importing the special skills and
products of other countries.

But there are other less

obvious and direct advantages that are in the long run
probably even more important.

Few other countries are as

nearly self-contained economically as we.

For most of them

the life of their populations on any decent level of sub­
sistence depends on the ability to export and to import.
This is as true of countries with a high organization of^
industry as of countries which are mainly sources of minerals
and agricultural products.
of Sweden, of Brazil.

It is true of Great Britain,

As to some countries the export of

services such as shipping means the difference between de­
pression and prosperity.

For many of these countries the

United States is .the major market and they also constitute
important markets for us.
One of the most striking facts about the modern world
is its increasing economic interdependence.

One of the

by-products of that interdependence is that prosperity can

on the basis of the magnitude alone, but in terms of the
crucial position of the foreign market in certain industries
and the indirect effects that loss of these markets would
'^Vfiave on other industries.
<

The tobacco leaf industry in

1938, for example, exported 57 percent of its total pro­
duction, the cotton industry 46 percent, and the aircraft
industry 62 percent.

The foreign market is also very large

for machinery, petroleum, autos, iron and steel, chemicals
and wheat, to mention only a few of the most important.
Exports, too, will assume an added importance for us
in the immediate post war years.

This country will be

faced with the job of reconverting from war to peace-time
production.

Since the process of manufacturing a steel

ingot is the same whether it is to be fashioned into a tank
or a locomotive, the conversion problem will be considerably
lighter if the industries producing capital goods can expect
a continuing market for their output.

It may be expected

that for a considerable time other countries of the world
will need urgently the machine tools and capital equipment
that this country will be in an excellent position to pro-

- 3 our tin from abroad and to make the high-speed and specialty
steels that modern industry and transport demand we shall
have to import 40 different commodities from more than 50
countries.

We need asbestos, nitrates, chrome ore, flax

fiber and various kinds of wools.

These are basic materials

for manufacture, but the list is long when we get into the
field of consumer wants with such items as coffee and tea,
tropic fruits and nuts and a great variety of food products.
We want also, though we may not need them so badly, cheeses
from Holland, china from Great Britain and Sweden, linen
from Ireland, laces from Belgium, watches from Switzerland,
and no doubt again rare wines and objects of art, beauty and
utility from France*

We want rugs and other textiles

fro ry ^

the near and the far East and works of art and handicraft
/

from the remotest mountains and valleys and deserts of all
the continents*

M

v-r•|j§

These things we would not give up without a wrench to
our economy and our mode of living, nor could we give up
our exports without

~

| i c

1 fill! fi a e U
difficulties^

4^

Although normally we sell abroad less than 10 percent of
our output of movable goods, that 10 percent is vitally important
The significance of the foreign markets must be judged, not

Probably no political unit on earth is so well fitted
for economic isolation as the United States of America,
so nearly equipped to supply all its own wants; but to
accomplish it we should need a police force of unimaginable
size and the result would be an economic revolution inter­
nally.

It is of course quite true that America is her own

best customer, both for the present and the future, and
that foreign trade accounts for but a small fraction of
our business.

But that small fraction has been built or

has grown into the fabric and tissue of our economy.

We

couldn’t cut it out without serious damage and peril to
our economic health.
So long as we need and want products of other lands
we shall have foreign trade, and no set of restrictions
will entirely choke it off.

There seems to be no good

reason to choke it off, but on the other hand a good many
reasons why we should encourage it.
There are reasons of immediate and obvious self-interest.
We need to buy and we need to sell.
that we don’t grow, make or dig.

We need to buy products

In spite of progress in

synthetics we shall probably want to go back to heavy
imports of crude rubber.

We shall have to continue to get

It woolFcI be unfortunate if in tm midst of war when
M

there is $ne greatest need of unitf we should divide our­
selves with quarrels crver the spoils of victory. But I
/
/
think life shall not divide oturcelves and may even possibly
/

/ \

promote victory if we make/some p^ans for peace on the
basils that there are to
r

fie

no spoils, biffe-srather that from

/

thaf rubble of a devastated world there shall be rebuilt

^

^

g

^

tur . that

c-geod. f\The woe and the disaster of war are great
\
A
that we ought not to add to them the peril of an unplanned
peace, or armistice between wars, as destructive as the
war itself.
In planning it is usual to think of alternatives, and
we have them on the international economic front.

One

would be economic isolationism, but it would be easy to
show that it isn't a workable alternative.

We don’t

exactly know what was the degree of isolation on this
continent prior to 1492; but we do know that isolationism
has not been the rule since then.

Nor could it have been.

(The following address by Herbert E. Gaston,
Assistant Secretary of the Treasury, at a
luncheon meeting of The Citizens Conference
on International Economic Union, at the
Hotel Statler, Washington, D. C., is scheduled
for delivery at
, E.W.T«, Saturday,
March 4, 1944» £
release at that t i m e # )

n

TREASURY DEPARTMENT
WASHINGTON

(The following address by Herbert E. Gaston*
Assistant Secretary of the Treasury* at a
luncheon meeting of The Citizens Conference
on International Economic Union* at the
Hotel Statler* Washington* D. C.* is scheduled
for delivery at 2:00 P.M.y E.W.T., Saturday,
March 4. 1944« and is for release at that time»)

The woe and the disaster of war are so great that we ought not to add
to them the peril of an unplanned peace* or armistice between wars, as
destructive as the war itself.
In planning it is usual to think of alternatives* and we have them on
the international economic front. One would be economic isolationism* but
it would be easy to show that it isn't a workable alternative. We don’t
exactly know what was the degree of isolation on this continent prior to
1492; but we do know that isolationism has not been the rule since then. Nor
could it have been.
Probably no political unit on earth is so well fitted for economic
isolation as the United States of America* so nearly equipped to supply^all
its own wants; but to accomplish it we should need a police force of unim­
aginable size and the result would be an economic revolution internally.
It is of course quite true that America is her own best customer* both for
the present and the future* and that foreign trade accounts for but a small
fraction of our business., But that small fraction has been built or has
grown into the fabric and tissue of our economy* W® couldn't cut it out
without serious damage and peril to our economic health.
So long as we need and want products of other lands we shall have
foreign trade* and no set of restrictions will entirely choke it off. There
seems to be no good reason to choke it off* but on the other hand a good
many reasons why we should encourage it.
There are reasons of immediate and obvious self-interest. We need to
buy and we need to sell. We need to buy products that we don’t grow* make
or dig. In spite of progress in synthetics we shall probably want to go back
to heavy imports of crude rubber. We shall have to continue to get our tin
from abroad and to make the high-speed and specialty steels that modern
industry and transport demand we shall have to import 40 different commodities
from more than 50 countries. We need asbestos* nitrates* chrome ore* flax
fiber and various kinds of wools. These are basic materials for manufacture*
but the list is long vdien we get into the field of consumer wants with such
items as coffee and tea* tropic fruits and nuts and a great variety of food
products. We want also* though we may not need them so badly* cheeses from
Holland* china from Great Britain and Sweden* linen from Ireland* laces from
Belgium* watches from Switzerland, and no doubt again rare wines and objects
of art* beauty and utility from France. We want rugs and other textiles from
40-99

-

2

-

th© near and the far East and works of art and handicraft from the remotest
mountains and valleys an d deserts of all the continents.
These things we would not give up without a wrench to our economy and
our mode of living, nor could we give up our exports without difficulties
probably just as serious.
Although normally we sell abroad less than 10 percent of our output of
movable goods, that 10 percent is vitally important. The significance of the
foreign markets must be judged,.not on the basis of the magnitude alone, but
S d theSindirect Ceffla+ P+ w i?H °f
foreign market in certain industries
industrial
®f£ects ,
tha* }°SS 0f thes® markets would have on other
of 1 + a +T+ 1 t0ba°00ileaf industry in 1938, for example, exported 57 perindustrv 62
it
h® C0t,t0n tadust:ry
Percent, and the aircraft
industry 62 percent. The foreign market is also very large for machinery
of ihee™ s t aS o r t a X

“ d St6e1’ che«ioals “ * wheat> to “

on ™ l y a few

T,„,t fSSjS?*. too>. !dl1 assume an added importance for us in the immediate
post war years. This country will be faced with the job of reconverting
ingotWX ihePs a m r tw hPr° ? r ti0?' J ^ 0® the prooess of manufacturing a steel
conve^loHcnM
t i V 3 *° ^ C l o n e d into a tank or a locomotive,
ducin^
problem wl11 be considerably lighter if the industries producing capital goods can expect a continuing market for their output
It
need ^ S v et o f m L h ?r Vconsiderable time other countries of the world will
in an excellent
^
equiP nent that •«*» oountry will be

a policvSofet r ^ n c S+of dire°t “ a °bvious sel^“Interest thus dictate for us
channels of
g ^
?Sn 2? ^
to keep opeh to the
degree the
• i .°? foreign trade after the war. We can profit bv exporting mir
of6otherCountries ^ B ^ + h
that^are
1 '
a ^ n e ^ l f Li? 8

ff*1 ^ importinS the special skills and products
f 3X9 °ther leSS °bvi°US and direot advantages
OTen
important. Few other countries

o
a\tlT^
th ability
ization of“ ndustryPS of c o w r i e s
°J " “ " f " ^
a ^
-ganagricultural products. It is true of
T Z Z s °f “i T * V " ®
As to some countries tho PYnnn+
J .
Britain, of Sweden, of Brazil.
ference between depression
serYJ-ces ^uch as shipping means the difUnited States is the major market°fndr+hi’
many °f the?e countries the
for us f
y also constitute important markets

economic ^ t e ^ e n t o e e ^ e ^ h f ^
bh® “ de™
- its increasing
that prosperity c“
¿ported^
L *
^
J
a
CUth,rt interdependence is
other lands we a^fto a
a can ^ P ^ s s i o n s .
If we trade with
at work in them
wa have
+ v •® C^i'eG subject to economic influences
them. We have a stake m world prosperity, in a general high level

- 3 of well-being* We have an economic stake, and also a political one, for
economic pressures may and do produce political explosions» If we mean to
avoid other world wars on the heels of this one we must lose no time in
building the economic foundations that will make continuing world peace pos­
sible.
Some people have such gre&t faith in the automatic mechanisms of economic
life as to believe that no planned overt action is needed for the restoration
of international trade, that the world will go back to the happy position of
some blessed year in the past if only left to the devices of the individual
business man, Hopes such as these ignore completely the experience so pain­
fully acquired during the decades between the two wars» Those years taught
us that no nation can avoid assuming some responsibility for the economic
life and trade of its citizens. V(e can choose the economic warfare of the
1930’s, when the nations of the world undertook to handle world trade and
currency problems independently, or we can benefit by this experience and lay
our plans for solutions which do not so clearly lead, to decreasing trade and
lower standards of living.
From the high tariff policies of the late boom years until the outbreak
of the present conflict, the major countries wepe engaged in practices which
seriously diminished the volume of wfrld commerce and prosperity# Politid­
eally, we were officially at peace during these years, but economic warfare
was being waged continuously* Although no single country was wholly to blame,
all were short-sighted# Nations attempted to achieve economic recovery at
each other’s expense. By means of quotas, tariffs, exchange controls, and
competitive depreciation of currencies, countries undertook to export unem­
ployment. These measures provided temporary relief until the countries
discriminated against followed suit. The volume of world trade declined
rapidly and all suffered.
Competitive exchange depreciation is an evil which snowballs. The actions
of specific countries and groups of countries in cutting the value of their
currencies - actions which often could not be avoided without help which was
not obtainable - created pressures on other countries to do the same# Exchange
dealers, understanding the incentive to further depreciation, were encouraged
to speculate and thus contributed to the flights from specific currencies which
were developing because of the growing monetary instability# The whole pattern
of exchange relationships, so slowly reconstructed after the last war, was
endangered, and the situation became one of serious monetary disorder#
In addition, another development took place which further diminished the
volume of world commerce. Nations, if they are to buy abroad, must pay for
their purchases in one of three ways: with gold and foreign exchange, or with
money obtained by selling their own products in foreign countries, or with
money obtained by borrowing# Since no country is able or willing to permit
a gold outflow indefinitely and the depression had considerably decreased the
opportunities of selling abroad, foreign loans and credits were very important
in determining the level of world trade.

—f

4

~

After 1928, however, this last avenue for the acquisition of foreign
exchange was virtually closed* The attraction of our own stock market
for the investment funds of American and foreign investors was one of the
reasons for the pre-depression decline. Unsettled political conditions
and the depression were responsible for the reluctance of investors in
subsequent years. The result was a further decline in the export markets
of all nations.
Thus the problems we shall have to face after the war are not merely
those created by the war itself, but in large part they are the heritage of
the years of depression and economic warfare which preceded it. We shall
face a world disorganized, exhausted and in many areas devastated by war.
The occupied areas and those which have been the battlefields will require
economic assistance on a tremendous scale. UNRRA, the international relief
organization, will provide for the most urgent needs, but relief will hardly
be sufficient in view of the devastation of Europe and the thoroughness with
which the occupied nations have been plundered of machinery and other
capital equipment. Immediate positive action will be necessary to prevent
economic stagnation and the social and political unrest which would follow
upon it.
For some years after the war few countries will have the surplus
commodities which can be used to pay for imports. Until such time as these
nations can again make use of their full productive capacity, extensive
international credits must be provided. We many reasonably expect that
the required volume of short term capital will be made available by the
commercial banks and trading houses. Industrialists and foreign traders
are already making plans to resume their usual exports and to extend
generous credits to their customers. It is also likely that there will be
a rapid resumption of direct investments in industrial exterprises abroad
in the form of subsidiaries and branch plants.
In addition, the world normally counts on a considerable volume of
long term credits to bring about a large and balanced international trade.
As much as one-fourth of the exports of the large industrial countries has
been paid for in ordinary times with funds provided through foreign
investment. In the post war period, long term credits will also be required
for reconstruction, for reconversion to peace time production, and for the
development of economically backward areas.
For many reasons it is unlikely that private investors will provide
an adequate supply of long term capital. In view of the losses suffered
on foreign securities and the restrictions imposed on the withdrawal of
earnings in the last decade before the war, private investors may
reasonably exercise considerable caution. The uncertain business conditions
which will undoubtedly prevail for a number of years will also serve to
discourage long-term lending.

- 5 -

Only with some assistance* therefore., can private investors be
expected to satisfy the unprecedented capital requirements of the post
war world. An institution is needed which can encourage private investors
and share their risks. To meet this heed the United Nations have begun
discussions which look forward to the establishment of an international
agency designed to facilitate the extension of long term credits.
a tentative plan for a Bank for heconstruction and Development has been
formulated by the teclinical staffs of the Treasury and other departments
and agencies of this government.
The proposed Bank would be a permanent intergovernmental institution
designed to encourage and aid international investment through the usual
investment channels, It is intended to make no loans or investments which
can be made by private investors on reasonable terms. In those cases
in which borrowers could not secure loans for productive purposes without
aid* the Bank would guarantee the loans made by private investors, where
market conditions made it difficult to secure all of the funds from
private investors* the Bank might participate in loans made through the
customary channels. It might also supplement the private capital market
by making loans itself if capital for productive purposes was otherwise
not obtainable. In all of its operations* the Bank would lay great stress
on the productivity of the project to be financed, liihile the Bank would
be interested in seeing adequate capital made available for productive
purposes* it would encourage only sound loans on which the borrower would
be able to pay interest and principal.
The existence and operations of the proposed investment Bank would
be
powerful stimulus to the revival of private international fending
and trade. It would not* however* do the whole job alone. If private
enterprise is to take hold quickly* investors and traders must confidently
expect the restoration of stability and balance and a greater degree of
freedom in international economic relations. There must be explicit
assurance that the monetary collapse which followed the last war in
many countries will not be permitted* and secondly* that the restrictions
which hampered trade and the withdrawal of earnings will be abandoned
as quickly as possible.

-

6

-

To accomplish these purposes another international agency is currently
under discussion by the technicians of the United Nations.
In this case the
proposal is for a permanent International Stabilization Pund designed to
prevent undesirable currency fluctuations. The Pund would also have as v
a major function the removal of the monetary restrictions on trade which
developed during the depression and the war.
Both functions are extremely important. Monetary stability does not
mean that exchange rates will be pegged for all time with no fluctuations
permitted, but rather tha.t exchange rates must move only when essential to
establish orderly and stable patterns in accordance with changes in the
basic economic relationships. The Pund would require that member countries
define their currencies in gold and agree not to change these relationships,
except to a very moderate degree, unless the change had. been approved by
the fund. In turn, the Pund would help member countries maintain the value
of their currencies. Member countries would also be prevented from engaging
in competitive currency depreciation and from imposing exchange restrictions,
except for the purpose of controlling undesirable capital movements.
Both the Bank and the Pund would have no other purpose than to help
create conditions under which the flow of foreign trade and productive
investment between member countries would be fostered. To the extent that
we succeed in creating an environment conducive to a hlg.a level of commerce,
the interests of all nations will be served. Both projects are now in the
area of technical discussion. To set them up will require international
agreement and of course legislation which will put the full weight of
our Uovernment behind them.
The problems involved are international in scope. Our experience in
the years between the two wars, when countries attempted to deal with these
Questions independently, must convince us that only through effective inter-national cooperation can they be solved.

— oOo--'
-