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io
. fìì 3 M
V. 6 /
^»V
L IB R A R Y
ROOM 5030
JUN 14 1972
TREASURY DEPARTMENT
n M m m suuBimr
•v
Washington
FOR RELEASE, MORNING
Tuesday. larch 12* l$jg$»
Press Service
V -¿ S ')
the Secretary of the treasury announced last evening that the tenders for
$1,300,000,000, or thereabouts» of 91~day Treasury bills to be dated March Ik and to
nature Oune 13, l?i*6* which were offered m March 8, 1?1*&, were evened at the Federal Re
serve Banks on March 11»
The details of this Issue are as follows*
total applied for - $2,031*,615,000
total accepted
- 1,303,316,000
Average price
(includes 151,61*8,000 entered on a fixed-price
basis at 99*90$ and accepted in full)
- 99*90$/ Equivalent rate of discount approx» 0*375# per annua*
Range of accepted competitive bidet
* 99*91$ Equivalent rate of discount approx. 0*336# per annum
- 99*905
*
»
•
•
•
0.376# *
*
High
Low
(57 percent of the amount bid for at the low price was accepted)
Federal Ieserve
District
Total
Applied for
fetal
Accepted
Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
San Francisco
I
|
TOTH
lb,070,000
1,51*1»,987,000
to,788,000
33,510,000
38,1»65,OO0
7,695,000
277,736,000
11,818,000
21»,510,000
26,516,000
8,325,000
53,165,000
|2,081»,615, 000
9,512,000
921»,688,000
1»0,31(8,000
25,370,000
37,519,000
7,1(80,000
167,589,000
10*313*00®
l5,35l,ooo
20,926,000
7,b65,000
37,255.000
*1,303,816,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P APERS,
Tuesday, M a r c h 12, 1946, .
Press Service
No, V-257
The S e c r e t a r y o f the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for $ 1 * 3 0 0 , 0 0 0 , 0 0 0 , or t h e r e a b o u t s * of 9 1 - d a y T r e a s u r y
bills to be d a t e d M a r c h 14 and to m a t u r e June 13, 1946, w h i c h w ere
offered on M a r c h 8, 1946, were o p ened at the Federal Reserve Banks
on M a r c h 11.
The details
of this
issue are as
follows:
T o tal a p p l i e d for - $ 2 , 0 8 4 , 6 1 5 , 0 0 0
Total a c c e p t e d
1 , 3 0 3 , 8 1 6 , 0 0 0 (includes $ 5 4 , 6 4 8 , 0 0 0 e n
tered on a f i x e d - p r i c e b a sis at
9 9 . 9 0 5 and a c c e p t e d in full)
A v e r a g e price
- 9 9 . 9 0 5 / -Equivalent rate of di s c o u n t
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 e t i t i v e bids:
Righ
- 9 9 .915 E q u i v a l e n t
. 0/336% per
- 99.905 Equivalent
0.376% per
Lo w
(57 p e r c e n t
rate of d i s c o u n t approx.
annum
rate of d i s c o u n t approx.
annum
of the amount b i d f o r at the low p r ice was
Federal Reserve
District
Total
Applied
Boston
N ew Y o r k
P h i l a delphia
Cleveland
Richmond
Atlanta
Chicago
S t . Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
$
TOTAL
Total
Accepted
for
14,070,000
1,544,987,000
43.788.000
33.540.000
38.465.000
7.695.000
277,736,000
11.818.000
24,510,.000
26,516,000
8.325.000
53,165 ,.000
$2*084,615,000
-oOo-
accepted)
$
V
-
9,512,000
924.688.000
40.348.000
25.370.000
37.5 1 9 . 0 0 0
7.480.000
167.589.000
10.313.000
15.351.000
20.926.000
7.465.000
57.255.000
$1,303,816,000
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED, PLEASE
i
FORWARD 8 COPIES TO ROOM ¿*03, WTLKINS BUILDING
S
i
ures showing the
from warehouse, for
sident’s proclamation
ons of April 13, 1942,
945, as follows:
Country
of
Origin
Established
Quota
:
Imports
¡May 29, 1945, to
¡March 2f 19k6
11§t
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
—
Japan
United Kingdom
100
Australia
100
Germany
Syria
100
New Zealand
—
Chile
100
Netherlands
Argentina
2,000
Italy
100
Cuba
1,000
France
—
Greece
100
Mexi co
—
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
Guat emala
100
100
Brazil
Union of Soviet
Socialist Republics
100
100
3elgium
800,000
(Bushels)
79k ,1*25
.—
—
—
r
—
mm
at flour, semolina,
rushed or cracked
wheat, and similar
wheat products
Imports
Established :
! May 29, 1945,
Quota
: to March 2* 1
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
. 14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,229,356
:—
—
—
i:
23k
-«a»
—
—
—
—
-•.
—
—
**
—
—
—
-
•*
-
4,000,000
1,229,590
FOR IMMEDIÄT! RELEASE,
v.
Marah 12? 19h6
IS
' '■ '
■■, ' -•V
„
i
u
‘
,
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 1941, as modified by the.President’s proclamations of April 13, 1942,
and April 1 29, 1943 for the 12 months commencing May 29, 1945, as follows:
Wheat
Count ry
of
Origin
Established
Quota
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100,
Germany
Syria
100
—
Hew Zealand
—
Chile
100
Hetherlands
Argentina
2,000
100
Italy
Cuba
1,000
Prance
Greece
10Ö
Mexi co
—
Panama
Uruguay
—
Poland and Danzig
Sweden
Yugoslavia
’Horway
Canary Islands
1,000
Human!a
100
Guat emala
100
Brazil
Union of Soviet
Socialist Republics
100
100
3elgium
:
Imports
:May 29, 1945, to
:March 2r 19k6
(Bushels)
79k,1*25
•
—
—
,—
—
—
—
—
—
r
—
—
—
—
—
■»
■
j
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
imports
Established :
May
29, 1945,
Quota
i
»
• to Marek 2* 19k6
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
. 14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
*•
**
4,000,000
800,000
-OOOrs»
1,229,356
1 *“
mm
ff;
23U
**
mm
:
*■*
mm
■■
A
mm
**
m*
—
**
1,229,590
TREASURY DEPARTMENT
•Washington
Press Service
'No. V-258
FOR BIMEDIATE RELEASE,
Wednesday, March 13» 194-6»
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 1941, as modified by the President’s proclamations of April 13, 194-2,
and April 29, 194-3, for the 12 months commencing May 29, 194-5, as follows •
Sheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Origin
¡Established
:
Quota
•
•
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
—
Japan
100
United Kingdom
—
Australia
100
Germany
100
Syria
—
New Zealand
■rChile
Netherlands
100
2,000
Argentina
100
Italy
Cuba
1,000
France
•n*
Greece
1QQ
Mexico
—
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
$
Canary Islands
Rumania
1,000
Guatemala
100
Brazil
100
Union of Soviet
Socialist Republics
100
Belgium
100
800,000
Imports
:
: May 29,1945, to
-^
* March 2, 1946
(Bushels)
794,425
; Established : Imports
:
Quota
:May 29, 19 45,
¡to March 2,19/
(Pounds)
(Pounds)
3,815,000
24,000
*7
.
—
—
—
—
-
r*
-
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12, 000
1,000
1,000
1,000
1, 000
1,000
1,000
1,000
1, 000
1,000
1, 000
'-
1 ,229,356
-
234
-
-
—
794,425
-0O0-*
4,000,000
1,229,590
*
m
fmàmwt w&àtsiBBtè
Washington
tos
sxLiàSX, m m i m
Preas Serri©#
papbis
le*
Rsida M 5*ck
wil (ÌM.%1* 1W*
unblocVing
*Bai<msie#4 ***?
..... .-«
******
__ #®S> eh* riih certa!a exeeptiona, Sia« ih# effeci of
accorante of persona paroled or released froa internment.
' ih© war, & larga aumber of pertons vere interned la
this country and» under XsKtlivt Qrder So* §389* aa amenèed, ih#
freasury Department ìaposed eertain blooming restriction» upon their
a#©Guai# and other ae##i# to prevent their utilisation la any manner
harmful io ih# patii© Interest. Many of ih# intera### h#r# now been
paroled or rele&sed by ih# Departaent of Justice. Conaoqaeatly, viih
thè exception of ihoso who have tosa roleaeed inio tho custody of
laaigratien and Naturalisation Service for deportation proceedinga and
ihoee vho have been^ordorod rapairi-aieA andar a -r#aov«l order" iasaed
"pursu^Tto^P residential Proelaaation, thè me# circuìar re«tor#s ali
foraer intemees io thè etatua under lineativ# Order So* 8389» ae
amondod, which they had prior io ihoir internment.
Banking Aneti tutiene/ahoulà exercibe caro la uhhdocking ffee
a##oi#|of foraey interno#a under thia circuìar tinca aap «neh
eh© aro ©t ¿arpe aay noi b#/entitled io Xhe benefit» of iho cir<
hocauso they ¿e poo«iblo ^kbjects fory deporiaiioa ory
should ha aaead that no^oraon i# auth^iaod io
oth#r dealinai viih raipect
payaente» transfert* vi/hdrawale*
f of aay ustionai of/a blpcVed
properiy ho hoida or controla oa
aury llcanao.
country»,piopi pursagat io a 9
>
JU*'*’
H■
^
(A
ip
POarelieWfb 2/12/46
V
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p
*
•vi
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f *d
cs o xil
u co Pii
«¡5<i POI
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING- PAPERS
- Friday. March 15f 1QA6
Press Service
No. V-259 «
The Treasury Department today announced the issuance of Public
Circular No* 29 , which, with certain exceptions, has the effect of
unblocking the accounts of persons paroled or released from internment*
During the war, a large number of persons were interned in
this country and, under Executive Order No* 8389, as amended, the
Treasury Department imposed certain blocking restrictions upon their
accounts and other assets to prevent their utilization in any manner
harmful to the public interest* Many of the internees have now been
paroled or released by the Department of Justice* Consequently, with
the exception of those who have been released into the custody of
Immigration and Naturalization Service for deportation proceedings and
those who have been required to leave the United States by a ”removal
order” issued pursuant to Presidential Proclamation, the new circular
restores all former internees to the status under Executive Order No*
8389, as amended, which they had prior to their internment*
TREASURY DEPARTMENT
Washington
E O R RELEASE, M O R N I N G PAPE R S
Friday, M a r c h 15, 1946______
Press S e r v i c e
No,' V - 2 5 9
The T r e a s u r y D e p a r t m e n t t o d a y a n n o u n c e d the issuance of •
P u b l i c C i r c u l a r No. 29, which, w i t h certain exceptions* has
the effe c t of u n b l o c k i n g the a c c o u n t s of p e r s o n s p a r o l e d or
r e l e a s e d f r o m internment.
D u r i n g the war, a large n u m b e r of p e r s o n s w e r e internedin this c o u n t r y and, u n d e r E x e c u t i v e Order No. 8389, as amended,
the T r e a s u r y D e p a r t m e n t i m p o s e d c e r t a i n b l o c k i n g r e s t r i c t i o n s
upon t h eir a c c o u n t s a n d o t her a s sets to p r e v e n t t h eir u t i l i
zation in a n y m a n n e r h a r m f u l to the p u b l i c interest.
M a n y of
the internees have n o w been p a r o l e d or r e l e a s e d by the. D e p a r t
men t of Justice.
Conse q u e n t l y , w i t h the e x c e p t i o n of t h o s e who
have been r e l e a s e d into the c u s t o d y of I m m i g r a t i o n a n d N a t u r a l
ization S e r v i c e f or d e p o r t a t i o n p r o c e e d i n g s a n d t h ose w h o have
been r e q u i r e d to leave the U n i t e d States, by a '’r e m o v a l 1order"
i s sued p u r s u a n t to P r e s i d e n t i a l P r o c l a m a t i o n , the n e w c i r c u l a r
r e s t o r e s a l l f o r m e r internees to the status u n d e r E x e c u t i v e
Order No. 8389, as amended, w h i c h t hey had p r i o r to t h eir
internment.
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1*03, WILKINS BLDG.
( / -
y
b
eliminary figures
consumption during
lows:
_____ ty in Pounds
As of March 2, lÿ+6
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
620,662,028
279,032,203
8 .690,091*
139
12,1*12, llU
8 ,767,81*9
12,151,605
26,921,61*9
11.01*3,300
**.375,5“*3
16,61*2,233
“*.152.379
1,956,032
18,938,685
Non-Signatory Countries:
15.31*0.015
TOTAL
1 ,01*1 ,085,868
FOE IMMEDIATE RELEASE
March 12~, 19^6
(3
D
The Bureau, of Customs announced today preliminary figures
shoving the quantities of coffee entered for consumption during
the period commencing October 1, 19^+5* as follows:
Country of Production
Quantity in Pounds
As of March 2, 19^+6
Signatory Countries:
620,662,028
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Huatemala
Haiti
Honduras
Mexico
Eicarggua
Peru
Venezuela
279,032,203
8 ,690,091+
139
i2,ia2,iiU
8.767,31+9
12,151,605
26,921,6^9
11 ,0H3.300
>+.375.51+3
16,6^2,233
>+.152.379
1,956,032
18,938,685
Signatory Countries:
15.3H0.015
TOTAL
l,Ol«L,085,86s
TREASUHÏ DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, March 13, 1946«
Press Service
No. V-2Ó0
The Bureau of Customs announced today preliminary figures showing
the quantities of coffee entered for consumption during the period
commencing October 1, 1945, as follows:
Country of Production
Quantity in Pounds
As of March 2, 1946
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
620,662,028
279,032,203
8,690,094
139
12,412,114
8,767,349
12,151,605
•26,921,649
11,043,300
4,375,543
16,642,233
4,152,379
1 ,956,032
18,938,685
Non-Signatory Countries:
15,340,015
TOTAL
1,041,085,863
. -• 2 -
COTTON CARD STRJPS made from cottons having a staple of .less than 1— 3/16 inches
in length, COMBER WASTE, LAP:.WASTE, SLIVER WASTE,'AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing
September 20,..'-Hr Countries of Origin:
Total quota, provided, however, that not more than 33-1/3 percent of the quotas
shall be filled by cottop wastes other than
comber wastes made from
cottons of 1-3/16 inches or more in staple length in the case of the follow
ing countries: United Kingdom, France, Netherlands, Switzerland, Belgium,
Ge rmany, and 11 aly:
(In Pounds)
Country of Origin :
TOTAL IMPORTS
Established
"Sept. 20, 19 i 4
TOTAL QUOTA :
to Mar * 2, 19k 6
9
United Kingdom.....
Canada/'*... ........
France.............
British India......
Netherlands........
Switzerland........
Belgium.......... ,,
Japan..............
China..............
Egypt..............
Cuba..............
Germany........ .
Italy..... .
4,323 ,457
239,690
227,420
69,627
68 ,240
44,388
38,559
341,535
17,322
8,i35
6,544
76,329
21,263
TOTALS
5,482,509
1/
am
—
—
'
'
69,627
m, '
;
'
•—
-^ e-
1,441,152
-
75,807
—■
22,747
14,796 '
12,853
-
-
-
— ,
-
69,627
-0O 0-
33-1/3# of : Sept. 20, 194 5
1/
Total Q,uota : toMar* 2f
iyU6
—
—
Included in total imports, column 2.
\ ESTABLISHED : Imports
25,443
7,088
1,599,886
—
—
—
1-
m
—
—,
-
.
y/'i* > & !
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1*03, WILKINS BLDG.
ary reports from the
waste chargeable to the
ns of September 5, 1939,
rch 31 ,• 1942.,-: and June
2, 1 ^ 6 '
R THAN HARSH OR ROUGH
FLY USED IN THE MANUTERS ).• •Anhual duot as
Country of
Origin
Je length 1 - 1 /8 ,r or more
T^nan x-x/p"
uJ, less than 1-11/16»
•
:Imports Sept.: Established
Imports Sept
¡•Established:20 , :194’ to f.Quota
2 0 , 19^, to
:
quota
m r . Z , l$k6
45,656,420.
r . 2 , 1 9k 6
Egypt* and the AngloEgyptian Sudan........
783,816
Peru.--- ...----247,952
237,814
2,003,483 1 ,796,001
British India...-,.......
China..........,........ 1,370" 791
Mexico.......
8,883,259
8,883,259
Brazil...,..,.....;.,...
618,723
618,723
Union of Soviet
Socialist Republics...
475,124
Argentina...........______
5“203
Haiti,--- ...........,,.,
"237
Ecuador................. '
9 333
Honduras................
752
Paraguay........,.V.....
871
Ob 1 o m b i a *.» ,
u ^ 124^
Jraq........ ...... ...../
195 '
British East Africa..,
2,240
Netherlands East Indies.
71,388
Barbados.,.............
Other British West
Indies 1 / ........
21,321
Nigeria..........
5 ,3 7 ?
Other British West
Africa 2/
16,004
Other French Africa 3 / . 6 8 9
Algeria and Tunisia.....
14,516,882
1/
11,535,797
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and’'Tobago
2 / Other than Gold Coast and Nigeria,
3/
11,665,120
5,380,645
Other than Algeria, Tunisia, and Madagascar.
17,045,766
f(M IMMEDIATE RELEASE
Mareh. 12 , 19U6
*•
,,v . . , ^ , . . r „ .■
■
■
■
■
■
■
■
■
The Bureau of Customs announced today that preliminary reports from the
icollectors of customs show imports of cotton and cotton waste chargeable to the
|import quotas established Tty the President’s proclamations of September 5, 1939,
as amended’by the proclamations of Dedembeh 19 , 1940, March 31, 1942.,- and June
¡29, 1942, during the period September 20 £ 194$, to March 2, 1 9h6
1
,
*v ■ '1 * ' ; V
. *’:
V/V
~\-rr■>. •■•
-‘
r'r
.r. i
t
COTTON HAVING- A STAPLE OP LESS THAN 1-11/16 INCHES (OTHER THAN HARSH.OR ROUGH
COTTON OF LESS. THAN 3/4 INCH IN STAPLE LENGTH A&D CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). - Annual quotas
/ commencing September 20, by Countries of Origin:
(In Pounds)
Country of
Origin
Staple lengthless . : Staple length 1-1/8" or more
but less, than 1-11/16"
than 1-1/8"
: Imports Sept.
Established
:Imports Sept.:
: 20, 19^,, to
.Quota..
Es tab li shed : 20 , . 194-5», to ?
45,656,420 #ar* 2 , 19k 6
Quota
I t o . 2 , 1#4.6
Egypt* and the AngloEgyptian Sudan.......
Peru...... .......
British India...........
China............................ ....
Mexico.... ...................•...
Brazil ................ .. ...........
Union of Soviet
Socialist Republics...
Argentina..............
Haiti..... .............
Ecuador...... .........
Honduras...............................
Paraguay.. . . . . . . , . , .....
Co 1oinbia.,^^,*^*
Iraq.. ............ .........
British Bast Africa..,.’
Netherlands East Indies.
Barbados...............
Other British West
Indies 1/............
Nigeria.............. ..
Other British West
Africa 2/
Other French Africa 3/..,
Algeria and Tunisia.
783,816
247,952
2,003,483
1,370,791
8,883,259
618,723
475,124
5,203
"237
9,333
752
871
124
195
2,240
71,388
if
•: r 4
*_
21,321
5,377
16,004
689
01,665,120
5,380,645
—
8,883,259
618,723
’ mm
■
mm
.
—
m i\
'. •: •
mm
' .mm •
-mm
mm '
mm
mm
y
r-
.
'4rn-
-•>
■
Ù
mm
••
mm
mm
-mm
mm
-
-
-
mm
mm
14,516,882
2/
3/
237,814
1,796,001
11,535,797
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria,
Other than Algeria, Tunisia, and Madagascar,
1
17,045,766
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE>
Wednesday. March 13. 194-6.
Press Service
No, V-261
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the Presidents proclamations of September 5 , 1939,
as amended by the proclamations of December 19, 1940, March 31, 194-2,, and June
29, 1942, during the period September 20, 194-5, to March 2, 194-6
COTTON HAVING A STAPLE OF LESS THAN 1-11/16 INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3 /4. INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). ' Annual quotas
commencing September 20, by Countries of Origin:
.
(in Pounds)
Country of
Origin
: ’ Staple length less : Staple length 1— 1/8U or more
but less than 1—
:
than 1— 1 /8'*
:
:I
:Imports Sept,: Established : Imports Sept,
Established:20, 194-5 to :
Quota
5 20, 194-5, to
Quota
:Mar. 2 « 194-6: 4.5 .656 .420 :Mar, 2. 194-6
Egypt and the Anglo- , ;
Egyptian Sudan,.,,,,,,
783,816
Peru
..... #*•
247,952
British India
2,003,483
China ,.•*•« **« %% »,;v k I,370,791
Mexico.
.
__ ...
8,883,259
Brazil..................
618,723
Union of Soviet
Socialist Republics,.,
475,124
5,203
Argentina**............,
Haiti ,.. ...
....,,,
237
Ecuador ... ............ .
9,333
Honduras .'...... ...______•.
752
Paraguay»,,...,........., ,,
871
Colombia...;...........
124
Iraq,..............
195
Briti sh East Africa.....
2,240
71,388
Netherlands East Indies.
—
Barbados ......___ ......
Other British West
..
Indies 1 /........... ■..
21,321
Nigeria........ .......,
5,377
Other British West
Africa 2 /......... .
16,004
Other French Africa 3/,.
689
Algeria and Tunisia....
-
14,516,882
1/
2/
3/
11 ,665,120
«**
237,814
1,796,001
—
8,883,259
618,723
.
5,380,645
—
—
—
——
—
—
—
'—
—
—
—
—
—
—
—
—
—
—
—
—
_
_
-
—
—
-
-
11,535,797
1
45,656,420
Other thap Barbados, Bermuda, Jamaica, Trinidad, and Tobago,
Other than Gold Coast and Nigeria,
Other than Algeria, Tunisia, and Madagascar,
17,045,766
*
- 2 ~
COTTON CARD STRIPS made from cottons having a staple of less than 1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing
September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33-1/3 percent of the quotas
shall be filled by cotton wastes other than comber wastes made from cottons
of 1-3/16 inches or more in staple length in the case of the following
countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany,
and Italy:
(in Pounds)
: Established : TOTAL IMPORTS : ESTABLISHED : Imports
Country of Origin : ■TOTAL QUOTA : Sept. 20, 1945 : 33-1/3* of : Sept. 20, 1945
: to Mar. 2, 1946: Total Quota : to Mar, 2, 1946 1/
United Kingdom,
Canada............
France... .........
British India,.....
Net herlands ____ ...
Switzerland.......
Belgium.... ... t...
Japan....... .
China....____ _____
Egypt
.... .
Cuba ........ ......
Germany............
Italy..... ........
TOTAIS
1/
-
4,323,457
239,690
227,420
69,627
68,240
44,338
38,559
341,535
17,322
8,135
6,544
76,329
21,263
1,441,152
—
75,807
22,747
14,796
12,853
-
mm
-
69,627
5,482,509
Included in total imports, column 2.
oOo
—
—
69,627
—
—
~
—
•*
.
«*
—
—
25,443
7,088
1,599,886
—
—
—
mm
-
*
’
T'tsQ .
^
& *i~—
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 copies to Room 1*03, Wilkins Bldg.
A*
$
f±gUJ^ ^ showing the imports
f provided for under trade
March 2, 191*6, inclusive,
Unit
of
Quantity
X yy w àVVV
: imports as of
:
March 2,
:
191*6
Gallon
1,703
Gallon
399
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
15 ,000,000
Pound
White or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 191*5 90,000,000
60,000,000
Pound
Pound
80,036,1*92
200,597
Pound
(unstemmed
equivalent)
Quota filled
Cuban filler tobacco unstemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Red cedar shingles
Calendar Year
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
Calendar Year
solids
22,000,000
Undetermined Square
1,500,000
Gallon
Silver or Black foxes, furs, Month of
February
and articles: Foxes
Canada
17,500
valued tinder $250 each
Other than Canada 7,500
and 'whole furs and skins
Number
Number
Tails
12 months from
Dec. 1, 191*5
7,121,792
21*7,755
7,71*0
77
5,000
Piece
-
Paws, heads or other
separated parts
n
500
Pound
1*90
Piece plates
<t
550
Pound
-
Articles, other than piece plates «
500
Unit
36
^u
FOR IMMEDIATE RELEASE,
*2^ .
March M», 1946._______
7
\/~'Lé 1—
Jf
The Bureau of Customs announced today preliminary figures showing the imports
for consumption of commodities within quota limitations provided for under trade
agreements, from the beginning of the quotsTpefiods) to March 2, 1946, inclusive,
as follows:
■—
Commodity
#
•
Unit
•
•
Established Quota
:
of
:
: Period and Country : Quantity: Quantity
: Imports as of
March 2,
:
:
1946
Whole Milk, fresh
or sour
Calendar Year
3,000,000
Gallon
1,703
Cream, fresh or sour
Calendar Year
1 ,500,000
Gallon
399
Fish, fresh or frozen,
filleted, etc*, cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
15 ,000,000
Pound
Tjftiite or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 1945 90,000,000
60,000,000
Pound
Pound
60,036,1(92
200,597
Pound
(unstemmed
equivalent)
Quota filled
Cuban filler tobacco unstemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Red cedar shingles
Calendar Year
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
Calendar Year
solids
22,000,000
Undetermined Square
1,500,000
Gallon
Silver or Black foxes, furs, Month of
February
and articles: Foxes
Canada
17,500
valued under |>23>0 each
Other than Canada 7>500
and whole furs and skins
Number
Number
Tails
12 months from
Dec. 1, 1914.5
7,121,792
21(7,755
7,71(0
77
5,000
Piece
-
Paws, heads or other
separated parts
«
500
Pound
1(90
Piece plates
u
550
Poland
-
500
Unit
Articles, other than piece plates
36
TREASURY DEPARTMENT
Washington
FGR IMMEDIATE R e LEa S e ,
Thursday. March 14. 1946.
Press Service
No. V-262
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided for
under trade agreements, from the beginning of the quota periods to March 2,1946,
inclusive, as follows:
Ceramodity
... _____ _________________
iiiacle Milk, fresh
or scur
:
: Unit :Imports as of
:_____ Established C^uota____ :
of
:
March 2,
: Period and Country: Quantity:Quai tity;____ 1946
_
Calendar Year
3,000,000
Gallon
1,703
Cream, fresh or sour
Cal en dar Year
1,500,000
Gallon
399
Pish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk,and rosefish
Calendar Year
15,000,000
Pound
90,000,000
60,000,000
Pound 80,036,492
Pound
200,597
White or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 1945
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
22 ,000,000
Eed cedar shingles
Calendar Year
Undetermined Square
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar Year
Silver or Black foxes, furs,
and articles: Foxes
valued under #250 each
and whole furs and skins
fails
7,121,792
Pound
(unstemmed i^uota
equivalent)
filled
247,755
o
o
o
o
o
Gallon
-
Month of
February
Caiada
17,500
Other than Canada 7,500
Number
Number
7,740
77
12 months from
Dec. 1, 1945
5,000
Piece
1,
Paws, heads or other
separated parts
ii
500
Pound
490
Piece plates
it
550
Pound
-
Articles, other than piece plates
it
500
Unit
36
...r
m
-
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.
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and ppice range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, tenders for $200,000 or less from any one bidder at
99.905 entered on a fixed-price, basis will be accepted in full.
Payment of accepted
tenders at the prices offered must be made or completed at the Federal Reserve Bank
in cash or other immediately available funds on
March 21. 19k6
'
..
—
~
The income derived from Treasury bills, whether interest or gain from
the sale or other disposition of the bills, shall not have any exemption, as such,
and loss from the sale or other disposition of Treasury bills shall not have any
special treatment, as such, under Federal tax Acts now or hereafter enacted.
The
bills shall be subject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed
on the principal or interest thereof by any State, or any of the possessions of
the United States, or by any local taxing authority.
For purposes of taxation the
amount of discount at which Treasury bills are originally sold by the United States
shall be considered to be interest.
Under Sections 42 and 117 (a) (l) of the
Internal Revenue Code, as amended by Section 115 of the Revenue Act of 1941, the
amount of discount at which bills issued hereunder are sold shall not be considered
to accrue until such bills shall be sold, redeemed or otherwis . disposed of, and
such bills are excluded from consideration as capital assets.
Accordingly, the
owner of Treasury bills (other than life insurance companies) issued hereunder
need include in his income tax return only the difference between the price paid
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday, March 15>, 1 9h&
,
'
a*
The Secretary of the Treasury, by this public notice, invites tenders
for -$ 1,300,000,000 , or thereabouts, of
91 -day Treasury bills, to be issued
m
"TSF
on a discount basis under competitive and fixed-nrice bidding as hereinafter pro
vided.
The bills of this series will be dated
mature
June 20, 19U6
interest.
March 21, 19U6
, and will
, when the face amount will be payable without
They will be issued in bearer form only, and in denominations of $1,000,
$5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Standard
closing hour, two o ’clock p.m., Eastern Haas time,
Monday y March 18, 19^6
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 f, 99.925«
may not be used.
Fractions
It is urged that tenders be made on the printed forms and for-
w/arded 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 of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incoroorated bank or trust co ipany.
Immediately after the closing hour, tenders will be opened at the Federal
TREASURY DEPARTMENT
Washington
F O R RELEASE, M O O T IHG- REV.'SP A P E R S ,
Friday, M a r c h 15, 1946.
T h e S e c r e t a r y o f ,the Treasury, by this p u b l i c notice,
invites tenders'" f or § 1 , 300 , 000 ,000 , or thereabouts, of 91 -day
T r e a s u r y bills, to be i s sued on a d i s c o u n t basis u n d e r c o m
p e t i t i v e a n d f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r pro v i d e d .
The
bills of this series w i l l be d a t e d M a r c h 21, 1946, a n d w i l l
m a t u r e June. 20, 1946, w h e n the f a c e a m o u n t w i l l be p a y a b l e w i t h
out interest.
T h e y w i l l be issued in b e a r e r f o r m only, a nd in
d e n o m i n a t i o n s of § 1 ,000 , $ 5 ,000 , $ 1 0 ,000 , $ 1 0 0 ,000 , $ 500 ,000 ,
a n d § 1 ,000,000 ( m a turity value).
vTenders w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks a nd
Br a n c h e s up t o •the c l o s i n g hour, two o ’c l o c k p . m . , E a s t e r n
S t a n d a r d t i m e , ‘Monday, M a r c h 18, 1946,
T e n d e r s w i l l n ot be r e
c e i v e d a t the T r e a s u r y D epartment, W a s h i n g t o n .
Each tender
mus t be f o r an even m u l t i p l e of $ 1 ,000 , a n d the p r i c e o f f e r e d
m u s t be e x p r e s s e d on the basis of 10 0 , w i t h n o t more than three
•decimals, e. g . , “99V925.
F r a c t i o n s m a y n o t be used.
It is
u r g e d tha t tenders be made on the p r i n t e d forms a n d f o r w a r d e d
in. the s p e c i a l envelopes w h i c h w i l l be s u p p l i e d by F e d e r a l
R e s e r v e Banks or Br a n c h e s on a p p l i c a t i o n therefor.
T e n d e r s w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
banks a n d t r u s t c o m p a n i e s a n d f r o m r e s p o n s i b l e a n d R e c o g n i z e d
dealers in i n v e s t m e n t s e c u rities.
Tenders f r o m others m u s t be
a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the f a c e a m o u n t of T r e a s u r y
bills a p p l i e d for, unle s s the t e n d e r s are a c c o m p a n i e d b y an ex
press g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or t r u s t company,
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p ened
at the F e d e r a l R e s e r v e Banks a n d Branches, f o l l o w i n g w h i c h public
a n n o u n c e m e n t w i l l be made b y the S e c r e t a r y of the T r e a s u r y of
the a m o u n t a n d p r i c e r a n g e of a c c e p t e d bids.
Those s u b m i t t i n g
tenders w i l l be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to
a c c e p t or r e j e c t a n y or a l l tenders, in w h o l e or in part, and
his acti o n in a n y s u c h r e s p e c t s h a l l be final.
S u b j e c t to these
reser v a t i o n s , t e n ders fo r $ 200,000 or less f r o m a n y one b i dder
at 99.905 en t e r e d 6n a f i x e d - p r i c e basis w i l l be a c c e p t e d in full.
P a y m e n t of a c c e p t e d tenders a t the p r i c e s o f f e r e d m ust be made
or c o m p l e t e d a t t h e -F e d e r a l R e s e r v e B a n k in c a s h or other immediate*,
ly a v a i l a b l e funds on M a r c h 2 1 , 1946 .
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
V-263
(O v e r )
- 2 -
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 s u b j e c t to estate-, inheritance, gift, or
other excise..taxes, w h e t h e r F e d e r a l or State, but s h all be exempt
f r o m a l l t a x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n c i p a l or
i n t e r e s t t h e r e o f by a n y State, or a n y of the p o s s e s s i o n s of the
U n i t e d States, or b y a n y l o c a l t a xing a u t h ority,
F or purposes
of t a x a t i o n the a m o u n t of d i s c o u n t at w h i c h T r e a s u r y bills are
o r i g i n a l l y s o l d by t h e ’U n i t e d States s h a l l be. co n s i d e r e d to be
interest.
U n d e r Se c t i o n s 42 a n d 117 (a) (1) of th e Internal
R e v e n u e Code, as a m e n d e d by S e c t i o n 115 of the R e v e n u e A c t of
1941, the a m o u n t of d i s c o u n t at w h i c h bills issued h e r e u n d e r arcs o l d s h a l l n o t be c o n s i d e r e d to a c c r u e u n t i l : s u c h bills shall
be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, a n d s u c h bills are
e x c l u d e d f r o m c o n s i d e r a t i o n as c a p i t a l assets.
Acco r d i n g l y , the
owner of T r e a s u r y bills (other.than life insurance c o m p a n i e s ) "
i s s u e d h e r e u n d e r n e e d include in his income ta x r e t u r n only the
d i f f e r e n c e b e t ween the p r ice p a i d for s u c h bills, w h e t h e r on
o r i g i n a l issue or on s u b s e q u e n t purchase, a nd the a m o u n t actually
r e c e i v e d e i ther upon sale or r e d e m p t i o n -a t m a t u r i t y during the
t a x able y e a r f o r w h i c h t he r e t u r n is made, as o r d i n a r y 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 Do. 418, as amended, a n d this
notice, p r e s c r i b e the terms of the T r e a s u r y bills and; g o v e r n the
c o n d i t i o n s of their issue.
C o p i e s o f .the c i r c u l a r m a y be obtained
f r o m a n y F e d e r a l R e s e r v e B a n k or B r a n c h . - •
-0O0-
Mr.. Bartelt
Mr. Batchelder
Mr. Bernstein (3*^5)
Mr. Brennan (Disb.)
Mr. Burdette (3Hl)
Miss Burke
B & W (^308)
Mr. Cake
Mr. Church
Mr. Coe
Mrs. Coon
Miss Cullen
Mr . Cunningham
Mrs. Day (3^21)
Mr. Delano
Mr. Dietrich (3^53)
Miss Edelin
Mrs. Farrell (5323)
Miss Florin (hl25)
Mr. Frese (3*+6U)
Mr. Gerardi
Miss Gibson (3^6H)
Mr.. Glasser (3^37)
Mr. Greenberg
Mr. Gunter (2222)
Mr. Haas
Mr. Handy (31*58 )
Mr. Hearst
Mr. Heffelfinger
Mr. Howard
Miss H 0del (3%8)
Mr. Hyland (3^13)
Mr. Jones (2M+9 )
Mr. Jordan
Miss Kailey (3013)
Mr. Kelley
Mr. Kilby
Mr. Landis
Mrs. Legg (3^53)
Mr. Maxwell (^330)
Mr. McDonald
Miss Michener
Mr. L. V. Moore
Mr. M. Moore (3*+58)
Mr. Mulvihill (5310)
Mrs. Naud (**330)
Mr* Ness
Mr. Nisonger (UU0 9 )
Mr*- 0*Connell
Mr. 0*Daniel (5056 )
Mr. Peterson (Disb.)
Mrs. Potts
Mr. Rabon
Mrs. Half (l32 h)
Mr. Reeves
Mrs. Root (3h6h)
Mrs. Ross
Miss Rousseaux (*+3 1 9 )
Miss Sanford (512h)
Mr. Schoeneman
Mr. Schwalm ...
~~Shae ffQr — — -h*
ir. slindee
Mr. Smith (3 W * )
Mr. Speck
Mr. Starratt
Miss Stockwell (3^53)
Mrs. Sundelson (3^9)
Mr. Tickton
Mr. Tietjens
Mr. Upham
Miss Vassar (3^6)
Mrs. Walker (3 **6h)
Mrs. Warneson (3^6)
Mr. Weber
Miss White (3^*6)
Mr. White
Mrs. Wondrack
M r. S h a e ffe r
M ies Sanford
HNaud
ha were made d u rin g the
hd guaranteed s e c u r it ie s
tment and o th e r accountss
.... 1718,000
« ...
none
.... 1718.000
-^1
I G reenberg
s a lo n e r o f gceouni
v uj b
h o '
Mias'"tasser (3 W |
Mrs, Wal^ë.r (3 h£h)
W-èrneson
jf#* l^plsp
Mise
(}Uk$)
Mr, White
Mrs * Woiîtâreck.
Mr*. Ziegenfus
Ml":*- (Je
^ ai ley (3013;
■
liëiley
Mît*. Îiiÿf;
•
Mr*- la ñ á is
M rs, I * - ( 3453 )
ÉllS lindera
March 7f 1946
K l
TO ME» B â S m î !
The following market transactions wer© mad© during the
month of February, 1946, in direct and guaranteed securities
of the Government for Treasury investment and other accounts 1
Purchases •••#••••••»••«»•*•••*«•*»
none
Met Sales .............. .
8718,000
go
Joseph Greenberg §:
Assistant Commissioner of ^jpeoun
CG toî
HHaud
!
Mr* Heffelfinger
Mr* Shaeffer
Mies Sanford
eli" VS'£Ì' 2ECISE1VBA
OLISCE Ot
¡.ij-".vr ~'Y MCE
Sales **********...... ............1718,000
V»
TREASURY DEPARTMENT
WASHINGTON
FOR I M M E D I A T E RELEASE,
Friday, M a r c h 15, 1946.
Press S e r v i c e
No. V-264
D u r i n g the m o n t h of February,
transactions
in dire c t a n d 'g u a r a n t e e d
the G o v e r n m e n t
accounts
1946,
for T r e a s u r y
resulted
in ne t
market
securities
of
i n v e s t m e n t and o t her
sales
V i n s o n a n n o u n c e d today.
oOo-
of $ 7 1 8 ,000,
Secretary
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Wednesday, March 20, 19I46._____
Press Service
m» V-265
Secretary of the Treasury Vinson today announced the offering, through the
Federal Reserve Banks, of 7/8 percent Treasury Certificates of Indebtedness of
Series D-19U7, open on an exchange basis, par for par, to holders of Treasury
Certificates of Indebtedness of Series C-19lt6, in the amount of $U,8l0,5£]4>000,
which will mature on April 1, 19ii6. Since ft is planned to retire about
$2,000,000,000 of the maturing certificates on cash redemption, subscriptions
will be received subject to allotment to all holders on an equal percentage basis
except that subscriptions in amounts up to $££,000 will be allotted in full.
Cash subscriptions will not be received.
The certificates now offered will be dated April 1, 19U6, and will bear
interest from that date at the rate of seven-eighths of one percent per annum,
payable semiannually on October 1, 19U6, and April 1, 19U7. They will mature
April 1, 19U7• They will be issued in bearer form only, in denominations of
$1,000, $£,000, $10,000, $100,000 and $1,000,000.
Pursuant to the provisions of the Public Debt Act of I 9I4Y, interest upon
the certificates 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 circular released today.
Subscriptions will be received at the Federal Reserve Banks and Branches,
and at the Treasury Department, Washington, and should be accompanied by a like
face amount of the maturing certificates.
The subscription books will close at the close of business Friday, March 22,
except for the receipt of subscriptions from holders of $2£,.000 or less of the
maturing certificates. The subscription books will close for the receipt of
subscriptions of the latter class at the close of business Monday, March 2£,
Subscriptions addressed to a Federal Reserve Bank or Branch or to the
Treasury Department, and placed in the mail before midnight of the respective
closing days, will be considered as having been entered before the close of the
subscription books.
The text of the official circular follows:
UNITED STATES OF AMERICA
7/8 PERCENT TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES D-191+7
Due April 1, 191+7
Dated and bearing interest from April 1, 19i+6
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, March 20, 191+6,
19l+6
Department' Circular No, 786
Fiscal Service
Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States for certificates of indebtedness of the United States, desig
nated 7/8 percent Treasury Certificates of Indebtedness of Series D-191+7, in
exchange for Treasury Certificates of Indebtedness of Series C^lpl+6, maturing
April 1, 191+6. Approximately $2,000,000,000 of the maturing certificates will
be retired on cash redemption.
II.
DESCRIPTION OF CERTIFICATES
1, The certificates will be dated April 1, 191+6, and will bear interest
from that date at the rate of 7/8 percent per annum, payable semiannually on
October 1, 191+6, and April 1, 191+7. They will mature April 1, 191+7, and will
not be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to all Federal
taxes, now or hereafter imposed. The certificates 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.
3* The certificates will be acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
i+. Bearer certificates with interest coupons attached will be issued in
denominations of $1,000, $5*000', $10,000, $100,000, and $1,000,000. The certifi
cates will not be issued in registered form,
5« The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States certifi
cates .
III,
SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Washington. Banking institutions generally may
-
2
-
submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorized to act as official agencies.
2. The Secretary of the Treasury reserves the right to reject any subscrip
tion, in whole or in part, to allot less than the amount of certificates applied
for, 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, subscriptions for amounts up to and including $ 2p ,000 will
be allotted in full, and subscriptions for amounts over p 2S>,000 will be allotted
to all holders on an equal percentage basis, but not less than v2f>;000 on any one
subscription. The basis of the allotment will be publicly announced, and allot
ment notices will be sent out promptly upon allotment.
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before April 1, I 9I46, or on later allotment, ana may be made only in Treasury
Certificates of Indebtedness of Series C-I9I46, maturing April 1, 191*6, which
will be accepted at par, and should accompany the subscription.
V.
GENERAL PROVISIONS
1. -As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective Districts, to issue allotment notices,
to receive payment for certificates allotted, to make delivery of certificates
on full-paid subscriptions allotted, and they may issue interim receipts pend
ing delivery of the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offer
ing, which will be communicated promptly-to the Federal Reserve Banks.
0. Max Gardner,
Acting Secretary of the Treasury.
THEASÜKY imPümrar
Veabitigl}¡¡
FOR SipjySg* M I »
KEfcSPAPERS*
Press Servios
■* iterch 19* 19L6.
V ~v 6 6
The Seerstary ef the T m s » 7 araseenced la s t evenin# that the tendero for
$1*300*000,000, or thereabaute, of 9X-d«jf fr*ase *7 M ili to be dated M
21 and to aettgrt
«hiñe 20« 19L6, whlch mere offered *m *$areh 15* X9ii6* «ere oponed a t tbe Federal Reserve
Banks on üaroh 13.
the detalla of thts í m
are ae follosas
to ta l applied for - $2,071**769*000 "
>
Total «aceptad
«* 1,115,311,000 (ineludes $49*339,000 enterad on a flasd-prloe
/
toséis a t 99*905 and aoeepted la Pulí)
Average prloe
- 99*905/ Sqplvalant rata of dteooust approau 0.3751 per asimi
Ranga of aoeepted corapetitlve bidet
II#
99*9X0^Equivalent rata of dlseoont approoe. 0*3565 per
99.905"
•
» *
•
•
0.3765^ *
Loar
■
(59 'pereent of the «raount toid for at the loe prloe waa aeoepted)
Federal Reserve
Diatrlct
total
Apollad for
total
Aoeepted
Boston
He* York
Hdladelphia
Cleveland
IMefogirtná
Atlanta
Chinaco
st. Louls
I
1
Saneas City
rwnan
San Francisco
TOTAL
19,680,000
1,1*91,760,000
29,76$,000
36,175,000
16,01*2,000
5,095,000
298,665,000
27,625,000
3,800,000
18,690,000
11,270,000
116 , 202,000
|2,07U,769,000 7
12,3U1,000
915,11*0,000
23,615,000
30,81*5,000
13,582,000
1*,931,000
187,965,000
17,662,000
3,1*72,000
17,1*36,000
9,81*0,000
78.1*32.000
$1,315,3U«ooo
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, M a r c h 19, 1 9 4 6 « •
Press S e r vice
No. V-266
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that the
tenders for £ 1 , 5 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y T r e a s u r y bills
to be dated M a r c h 21 a n d to m a t u r e June 20, 1946, w h i c h w e r e offered
on March 15, 1946, were o p e n e d at the Federal R e s erve Banks on
March 18.
The d e t a i l s
o f this
issue are as follows;
Total a p p l i e d for - $ 2 , 0 7 4 , 7 6 9 , 0 0 0
T o tal a c c e p t e d
1 , 5 1 5 , 5 1 1 , 0 0 0 (includes £ 4 9 , 8 3 9 , 0 0 0 e n t ered
on a f i x e d - p r i c e basis at 99.905
and a c c e p t e d in full)
A v e r a g e price
- 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 * 5 7 5 $ pe r a n n u m
Range o f a c c e p t e d c o m p e t i t i v e bids;
High
- 99.910 Equivalent
0 * 3 5 6 % pe r
- 99,905 Equivalent
0 *'376$ p e r
How
(59 p e r c e n t of the a m o u n t b i d for at
rate of d i s c o u n t approx.
annum
rate of d i s c o u n t approx.
annum
the l o w price was
accepted)
Federal Reserve
district
Total
A p p l i e d for
Total
Accepted
Boston
New York
$
£
P h ila d e lp h ia
Cleveland '
Richmond
Atlanta
C h ica g o
St. Louis
M in n e a p o lis
Kansas City
Balias
San Franc isco
TOTAL
19,680,000
1,491,760,000
29.765.000
36.175.000
16.042.000
5.095.000
298.665.000
27.625.000
3.8 0 0 . 0 0 0
18.690.000
11.270.000
116.202.000
$2,074,769,200
oOo-
,■■g
• 1 2 , 3 4 1 , .0 00
- 9 1 5 , 140,000
2 3 . 615.000
3 0 , 8 4 5 ,200
1 3 . 5 82.000
4 , 951,-000
187, 965,200
1 7 . 662.000
3 . 4 7 2.000
1 7 , 436,-000
9 . 842.000
7 8 . 4 8 2 .000
$1,315,311,000
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1*03, WILKINS BLDG.
minary figures
.sumption during
res
as
jity in Pounds
of"i$arch 9 t 19^6
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
659.209,81*5
292,831,1*02
11 ,093,896
11*7
13 .102,1*75
8 ,866,191
13,1*23,759
31,680,753
13 .359,252
11.375.51*3
19,962,11*3
l*.303,190
1.956,032
21,326,873
Non-Signatory Countries:
___ gl-xljl.693
TOTAL
1 ,116,663,191*
FOR IMMEDIATE RELEASE ;
March 19» 19^*6 ,
The Bureau of Customs announced today preliminary figures
shoving the quantities of coffee entered for consumption during
the period commencing October 1, 19^5, as follows:
Country of Production
Quantity in Pounds
As of March 9* 19**6
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
659.209.glt5
292 ,831,1*02
11 .093.896
l**7
13 .102 ,U 75
8 ,866,191
13 .H23.759
31.680,753
13,359,252
H.375.5H3
19 .962.1H3
H.303,190
1,956,032
21,326,873
Non-Signatory Countries:
___21.171.693
TOTAL
1 ,116,663,19^
TREASURY DEPARTMENT
W a s h in g t o n
POR IM M ED IA TE R E L E A S E ,
W e d n e sd a y , M a rc h 2 0 , 1 9 4 6
'
P r e s s S e r v ic e
N o . V -26-7
T h e B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s
s h o w in g t h e q u a n t i t i e s o f c o f f e e e n t e r e d f o r c o n s u m p t io n d u r i n g
t h e p e r i o d co m m e n cin g O c t o b e r 1 , 1 9 4 5 , u s f o l l o w s r
C o u n t r y o f P r o d u c t io n
Q u a n t it y in
A s o f M a rc h
,
Pounds
1946
9
S ig n a t o r y C o u n t r ie s :
6 5 9 ,2 0 9 ,8 4 5
2 9 2 ,8 3 1 ,4 0 2
1 1 ,0 9 3 ,8 9 6
147
1 3 ,9 .0 2 ,4 7 5
8 ,8 6 6 ,1 9 1
1 3 ,4 2 3 ,7 5 9
3 1 ,6 8 0 ,7 5 3
1 3 ,3 5 9 ,2 5 2
4 ,3 7 5 ,5 4 3
1 9 ,9 6 2 ,1 4 3
4 ,3 0 3 ,1 9 0
1 ,9 5 6 ,0 3 2
2 1 ,3 2 6 ,8 7 3
B r a s il
C o lo m b ia
C o s ta R ic a
Cuba
D o m in ic a n R e p u b l i c
Ecuador
E l S a lv a d o r
G u a te m a la
H a it i
H o n d u ra s
M e x ic o
N ic a r a g u a
P e ru
V e n e z u e la
2 1 ,1 7 1 ,6 9 3
H o n - S ig n a t o r y C o u n t r i e s !
TOTAL
1 ,1 1 6 ,6 6 3 ,1 9 4
• Ifj •
J:
T h * m e n ho n o r e d w i th tho m a n a g e m e n t of the F u n d a n d B o nk or #
truatooa of tho ideals of ma nk ind f o r a world fret from war
and want.
I pr ay that they will always bo faithful to that
trust.
Announcer«
Thank you Secretary Vinson.
Y o u h a r e Just h e a r d a re p o r t on the I n a u gur al M e e t i n g of
the world Fund and Bank from 2r. Antonio Espinosa do los
Monteroa, the iabassador of Mexico, and Governor for Mexico
of the Fund a n d Bank, a n d fro® the Secretary of the Treasury,
Fr ed M. Vinson, ehainaan of the Boards of Governors of the
Fund a n d of the Bank.
These two institutions, to be located
p
¿>¿5 p
i n W a s h i n g t o n , •£>. € . , w i t h r e s o u r c e s o f $ 1 6 b i l l i o n h a v e b e e n
es ta bli sh ed by 8 8 countri as to d e al w i t h the international
monetary an d financial problems that confront the world.
f t m u t t mo t th in k that tht w o r k of the ^orld Fund and
Btucik i t f i n i s h e d *
It hat only begun.
They will have atoning
to the people of the wo rl d only if they continue to bt tht
basis for constructive oooptration among nations»
Tht people
of all countrias must insist that their representatives on
the World Fund and Bank should not saak patty and temporary
advantages*
They m u s t ba op ar ata d f o r tha benefit of man»
Th ey a r t too important to tha w o r l d to ba an da nga ra d
by short-sighted policies#
Tha task of maintaining peace and prosperity is not a
one-day job.
man*
Ko r is it a task that can ba p e r f o r m e d b y one
It r e q u i r e s tha c o n t i n u e d c o o p e r a t i o n of the p e o p l e of
tha world everywhere, always*
Tha Fund and Bank need wise
G o v e r n o r s a n d D i r e c t o r s # Th ey n e e d f a n d I a m sura th e y w i ll
have, tha constant help and support of tho
m
13
m
Qn m a t t e r s o f m i n o r d e t a i l , t h e r e w e r e d i f f t r o n o s i o f o p i n i o »
T h e y w o r t i r o n e d o u t by d i t e u s s i o n , a n o t h e r p r o o f t h a t t h o
democratic process of discussion and agreement can bo made
to work#
On that fundamental principle, all countries were
united»
That is why the Inaugural Meeting has given us all
ne w faith that international cooperation can and must work#
Tho l e r l d F u n d a n d Bank are f a r too im po rta nt to leave
them entirely to tho management of technicians#
They would
wither and die if they wore o o n o e m o d merely with routine
o p e r a t i o n s # T h e W o r l d F u n d a n d t h e llorld B a n k a r e e x p r e s s i o n s
of tho noblest ideals of mankind#
They will live only If they
respond to tho needs of tho people# They will fall to tho
ground unloss thoy havs tho strong support of the people of
all nations*
12
T h « W o r l d F u n d iftll a l i n i n a t a r a a t r i o t l T « c u r r a n e y p r a e t i e a «
and substitut« fair standard« éi that ««antri«« «an axehanga
thair product* in a full fi«« «f trai
1
« know
frasi « x p a r i a n c « t h a t t h « é i m i t o m a i n t a i n
p « a e « li f a r b « t t « r i n a w o r l d i n w h i c h a l l o o u n t r i a « « h a r «
in profi tabi« trada«
T h « g r o a t d a p r a s s i o n « f t h « 1 9 3 0 1s
w i t h m a s s u n a & p l o y m e n t a n d a g r i e u l t u r a l « « H a p « « w a s intasasifiad and proloagad by unfair currency practlo««#
Ihe aaoond
W o r l d l a r m a pr a a a d a d a n d in larga part oa ua ad by tha a e onamie
w a r f a r e o f t h a 1 9 S u fa * T h a p a o p l o o f t h i s c o u n t r y a n d a l l
countrio« ara dataxminad that tha ae on««de «auca« of war
mu st b« eliminated*
Tha S a w i n a h moating ahowad that all oountriaa ara daaply
a o n s o i o u a of th a ur g a n t n a a a a a i t y af m a k i n g tha Fu nd a n d Sank
work«
And international cooperation means making the discussion and
conference process work#
The United Nations have established
the W o r l d Fond a n d Bank as the m m s for continuing coopera
tion on economic and financial problems«
It does n o t take a n y s p e c i a l k n o w l e d g e of bu si nes s a n d
f i n a n c e to see w h a t the F u n d a n d ^gank m e a n to w o r l d p e a c e
and prosperity#
There is not a country in the world that
does not find it necessary to sell farm products and ma n u
factured goods in foreign markets#
Th er e is n o t a co un try in
the w o r l d that does not find it necessary to buy raw materials
or finished goods from foreign producers#
produce, they cannot trade#
If countries cannot
If they cannot trade, they will
see the effect in unemployment and lowered standards of living#
'I.
IWmm- " ■' I 1
y I i
'|•
The.World Bank will make aveilable capital for reconstruc
tion and development so that all countries can produce#
H o w we m e e t these problems m i ll determine in U r g e pert whether
the world will again go through devastating cycles of war end
depression« or whether at long lest the cherished dream of
mn f o r p e a c e e n d p r o s p e r i t y w i l l b e f u l f i l l e d «
The l # r M Fund and Bank must not become just two more
financial institutions*
Theirs is the ta sk to lay the
economic foundation for a better world« Tou cannot build
a prosperous world with sick and hungry men« Tou cannot
raise e ne w generation dedicated to peace in the ruine of
bombed»out cities* Tou eannot hare a prosperous America
In e w o r l d of de pression a n d war#
Each country must assume responsibility« and no country«
however great or strong* can do the job alone«
These ere
international problems e n d they can be solved only by inter»
national cooperation*
m fjl m
I f yen. a s k w h a t m d i d a t t h e I n a u g u r a l M a t t i n g t f t h e
Itfift F u n d a n d Sank* 1 a n s w e r b r ie fly * l a p u t tha b r a a t h
of Xifa in to tha two institutions « h i o h hart tha task of
daaling with tha world's international financial problems*
In these two institutions forty nations hare placed their
faith that financial problems can be solved In a mutually
advantageous and peaceful say«
The highest ideals of mankind
WO*\?5
cannot surrivt merely as lofty weeds and phrasss9 as paper
plane and blueprints*
service of the people*
They mu st be put to wo rk in the
That is what we did at Savannah*
Any impression that the lo r Id Fund and Bank are
concerned solely with technical problems* of interest only
to tankers and economists* is ineorrsct#
In truth* t h e y
arc concerned with some of the most important problems
of svery day life*
T h a ti o u s a n d t o f m m 9 m m m s m i c h i l d r e n m i o g r e e t a i u s
« e r e l i v i n g e y m b o l e of th è burnirei» of a i l l i o n s ei p i a t o
people a l l over thè « o r l i « h o a e k thè chance to live a n i
v o r k t o g e t h e r i n p e a e e ini p r e a p e r l t y *
The people of
Savannah became thè advoeatee of aankini for a ieeent «orli
a « o r l i f r e e fresa m a r a n d w a n t » //
i n e o f t h è mesi enceuraging f e a t u r e s o f t h è I n a u g u r a i
Meeting mas tha determinatiou of thè Governare far all
countries to make thè Fund and Bank thè aeane for aucetaeful
cooperatici! a m o n g n a t i o n s on m e n a t a ry a n d f i n a n e i a l probietta
I a m g r a t e f u l to Dr« M o n t e r o s f o r hia a s s u r a m e a of thè
eontinued eooperation of tha Governare of these tmo i n d i t e tiene*
It a u g u r a « e l i f o r th è f u t u r e of thè f e r i i F u n d a n i
Announcer*
Y o u m i l now kttf fr om the Secretary of the
T r e a s u i ^ y * fmà I * V i n s o n * districali G o v e r n o r f o r t h e torli
Fimi an d Bank an i chairman of the Board of Governors of theca
tuo institutions*
Mr# Vinsoni
W t have just returned from Savannah* Georgia*
There we he ld the Inaugural Me et ing of the Governors of the
terld Fund and the ! ©rid Bank*
I cannot help but feel that
the spirit of cooperation that prevailed among the representa*
.
il; ¿ v ,
K
tivee of the f o r t y n a t i o n s wa s due in large p a r t to the w a r n
hospitality of the people of Savannah*
In this old American
eity of palms a n d flowers and Sp an ish moss* we found a welcome
that touched our hearts*
It m e a n t a g o o d d e a l t o u s to see the great i n t e r e s t of
the pe o p l e in this n e w v e n t u r e in i n t e r n a t i o n a l co op era ti mi *
Our psople shara ui tb fmm this deep hope for paaee tu#
p r o a p e r i t j r « fkty will d o t h e i r p a r i *
T h e r e i§ tut m a n , Storolaty V i n c o n , w h o i *
to tha ideal of International economic cooperatioc
b a a d o n e s o a u c h t o isake t h a l o r l d F u n d a n d B a n k a r e e l i t y .
Ü e o a u a e o f t h a i r e o n f i d e n c e i n Mm t h a G o v e r r t o r e o f t h a
•orld Fund a n d Bank salaotad b i m to ba tha firat chairman
o f t h a iw© B o a r d s »
I
feal that I apaak for all of tha
G o v e r n o r s o f t h a F u n d a n d B a n k i*htn 1 a a y t o S e c r e t a i y
Vinaon that ha aill bava our uhole*haarted eooperatlon in
this grast Ventura tonard a netter %orld«
s
The l e r M Fu nd will give the countries of the world an
opportunity to restore end expend trade«
I t mill d o t h i s
hy eliminating the restrictive currency practices that
prevent countries from interchanging their goods«
We in Latin America are especially sensitive tc inter*
national economic condition«« We sell abroad a large
proportion of what we produce! me buy abroad also a large
proportion of what wo consume« We see in the World Fund
a un iq ue opportunity* f o r co un tri es to coop era to in ex panding
w o r l d I r a t e fey o s t a b l i s h i n g s t a b l o a n d o r d e r l y e x c h a n g e
arrangements« /
These two institutions, the World Fund and the World
Bank, can be a potent force f o r good«
If they succeed in
their task of m a k i n g possible orderly progress in interna*
tional eeonomie relations, tha ehanee for maintaining a
peaceful world will bo greatly Improved«
4
Our economic lift is lltl cl os ely to y o u r s a n d we share f o u r
prosperity and depression* f©u, In turn, art effected by
our economic development, by our ability to sail our goods
a n d to buy your goods*
Tbs economic development of the
countries to the South mill mean that me mill be stronger
in joining wi th you for the preservation of peace«
It w i l l
mean that we will be more prosperous In sharing with y o u
the benefits of increased world trade*
The war has brought new measures of restriction and
discrimination that depress world trade*
Until order and
stability are restored in international monetary relations,
there esn be n o h o p e fo r r e s u m p t i o n of w o r l d tr ad e or f o r
its growth*
T h e basis f o r a l l trade m u s t be the confidence
that fair c u rr enc y p r ac tic es w i l l gi ve to all countries*
- 3 ~
Tha l o r l d Bank will mean a good daal to the davaatatad
areas of Europa and tha Far East«
These araae have been tha
battlaground of conquering a m i a s «
Those countries need a
chanca to reconstruct thair war devastated industria» so
that they can again provide, through thair own labor and
r e s o u r c e s , f o r th a n e e d s of t h a i r p e o p l e # T h a florid B a n k
H
will gira than tha opportunity to produce and to trade
once more#
It will do this by helping them to raise fr o»
pr iv ate investors, tha capital ne ce ssa ry for reconstruction,
on ta rn s f a i r to tha bo rr owe r a n d la nd er#
For us Lctin«*Amcrlcans, tha Wo rl d Bank will af fo rd an
o p p o r t u n i t y t o d e v e l o p o u r naeociit i n d u s t r i e s a n d t o e x t e n d
tha use of m o d e m me an s of production#
are y o u r friends a n d neighbor a#
Tha American Republics
8
Dr. ItetWHi
Tha dastruetion wrought by n r tot been
magnified hy th* achievementa of aolesoe to auoh on extant
that it io now almost beyond th«
world eon
c o n t r o l of aonkind. The
s o longer afford war. Our notions must find aone
Ttwty. W o aiiot find s o m e n o o s e of working out e a r problems
in peaoe. /
Tho pooplo of tho United notions or« determined to
eooperoto in the prevention of war.
It ie net enough for
countries to eooperoto os political problems.
It io equally
i m p o r t a n t t o c o o p e r a t e in e l i m i n a t i n g tho oe o n o a i e ca us es of
war.
That will ba doc« through tho agencies that are es*
tahiiahed for intornational economic cooperation. particularly
the World Fund and Bank. Through sueh political and economic
cooperation tho world*wido hop# for paaoa and proapority haa
a battar chance to ba achiarad.
. i g M i e M t , M a r e h 19, 1 9 4 & , — "
îfT0JL..-6tl6^ju«*— ter~6:3Q p.m.
Ann q u e car»
A t the Un i t e d Ks t i o n s iionetery C o n f e r e n c e et
B r e t t m Woods, agreements were prepared to establish the
International Monetary Fu nd and the International Sank for
Reconstruct!ec and Development. These agreements were approved
by th e B a i t e d S tates -and 3 7 o t h e r c o u n tri es .
Y e s t e r d a y at Savannah, Georgia, the Inaugural Me et ing of
the Board of Governors of tne Wo r l d Fund and the World Bank
oame to a close. A t this meeting, these two institutions with
resources of mo re than $13 million" were placed in operation.
Th ei r pr i n c i p a l offices w i l l be in this country, in Washington,
B, C.
W e h a v e i n v i t e d t w o d i s t i n g u i s h e d r e p r e s e n t a t i v e s a t the
Inaugural Meeting to present to you a report cm the World Fund
a n d d a n k *•— D r . A n t o n i o E s p i n o s a d o l o s K w i t e r o s , t h e A m b a s s a d o r
o f M e x i c o iir W a s h i n g t o n , a n d the G o v e r n o r f o r M e x i c o o f the
o r l d F u n d a n d B a n k , a n d the S e c r e t a r y o f t h e t r e a s u r y ,
F r e d M . V i n s o n , G o v e r n o r Mr t h e U n i t e d S t a t e s o f t h e W o r l d
F u n d a n d ¡auk, an d n o w ch ai rma n of the two boerds of gove rno rs
o f these g r e s t i n s t i t u t i o n s .
Dr. Konteros.
1/(The f o l l o w i n g is t h e t e x t o f
a b r o a d c a s t b,y S e c r e t a r y of
t h e Treasury, F r e d M. Vinson,
a n d t h e A m b a s s a d o r of Mexico,
Dr. A n t o n i o E s p i n o s a d e l o s M o n t e r o s ,
to be c a r r i e d o v e r S t a t i o n
>
6
■TREASURY D E P A R T M E N T
Washington
FOR RELEASE, 6:15 P.M., E.S.T.,
Tuesday, M a r c h 19, 1946.
Press S e rvice
No. V-268
(The f o l l o w i n g is the text of a b r o a d c a s t b y S e c r e t a r y
of the Treasury, Fred M. Vinson, and the A m b a s s a d o r
of Mexico, Dr. A n t o n i o E s p i n o s a de los Monteros, to
be .carried ove r S t a t i o n W T O P and the C o l u m b i a B r o a d
ca s t i n g S y s t e m f r o m 6:15 to 6:30 P.M., E.S.T., T u e s
day, M a r c h 19, 1946.)
A n n o u n c e r : At the U n i t e d N a t i o n s M o n e t a r y C o n f e r e n c e at B r e t
ton Woods, a g r e e m e n t s w e r e p r e p a r e d to e s t a b l i s h the I n t e r n a
tional M o n e t a r y Fund and the I n t e r n a t i o n a l B a n k for R e c o n
struction and D e v e l o p m e n t .
T h ese a g r e e m e n t s w e r e a p p r o v e d by
the. U n i t e d States and 37 o t h e r countries.
Y e s t e r d a y at Savannah, Georgia, the I n a u gural M e e t i n g of
the B o a r d of G o v e r n o r s o f the W o r l d Fund and the W o r l d B a n k
came to a close.
At this meeting, these two i n s t i t u t i o n s w i t h
resources of more than $ 1 5 , 0 0 0 , 0 0 0 , 0 0 0 wer e p l a c e d in o p e r a
tion.
T h e i r pr i n c i p a l o f fices will be in this country, in
W ashington, D. C.
We have invited two d i s t i n g u i s h e d r e p r e s e n t a t i v e s at .the
Inaugural M e e t i n g to p r e sent to y o u a report on the W o r l d Fund
and B a n k — Dr. A n t o n i o Espinoss de los M o n t e r o s , the A m b a s
sador of M e x i c o in W a s h i n g t o n , and the G o v e r n o r for M e x i c o of
the W o r l d Fund and Bank, and the S e c r e t a r y of the Treasury,
Fred M. Vinson, G o v e r n o r for the U n i t e d S t a t e s of the W o r l d
Fund and Bank, and no w ch a i r m a n of the two b o a r d s of g o v e r n o r s
of these great institutions.
Dr. Monteros.
D r . M o n t e r o s : The d e s t r u c t i o n w r o u g h t b y w a r has b e e n m a g n i
fied b y the a c h i e v e m e n t s of science to such an extent that it
is n o w almost b e y o n d the control of m a n k i n d .
The w o r l d can
no l o n g e r a f ford war.
O u r n a t i o n s m u s t find some remedy.
We
must find some m e a n s of w o r k i n g out o u r p r o b l e m s in peace.
The people of the U n i t e d N a t i o n s are d e t e r m i n e d to, c o o p
erate in the p r e v e n t i o n of war.
It is n ot e n o u g h for c o u n
tries to coo p e r a t e on p o l i t i c a l pro b l e m s .
It is e q u a l l y i m
portant to cooperate in e l i m i n a t i n g the economic causes of
war.
That will be done t h r o u g h the a g e n c i e s that are e s t a b
lished for i n t e r n a t i o n a l e c o n o m i c coope r a t i o n , p a r t i c u l a r l y
the W o r l d Tund. and Bank.
T h r o u g h s u c h p o l i t i c a l and econo m i c
coop e r a t i o n the w o r l d - w i d e hope for p e a c e and p r o s p e r i t y has
a b e t t e r chance to be a c h i eved.
The W o r l d B a n k w ill m e a n a goo d deal to the d e v a s t a t e d
areas of E u r o p e and the Par, East.
T h ese areas have b e e n the
b a t t l e g r o u n d of c o n q u e r i n g armies.
T h ose c o u n tries n e e d a
chance to r e c o n s t r u c t t h e i r w a r d e v a s t a t e d ind u s t r i e s so that
they can again provide, t h r o u g h t h e i r ow n l a b o r and resources,
•for the needs of t h e i r people.
The W o r l d B a n k will give the m
the o p p o r t u n i t y to p r o d u c e and to trade once more.
It will
do this by h e l p i n g t h e m to raise f r o m p r i v a t e investors, the
capital n e c e s s a r y f o r r e c o n s t r u c t i o n , on terms fair to the
b o r r o w e r and lender.
For us L a t i n - A m e r i c a n s , the W o r l d B a n k will a f f o r d a n o p
p o r t u n i t y to d e v e l o p our n a s c e n t i n d u s t r i e s and to. extend the
use of m o d e r n m e a n s of p r o d u c t i o n .
The A m e r i c a n Republics
are y o u r friends and n e i g h b o r s .
O ur ec o n o m i c life is^tied
closely to yours and'we- share y o u r p r o s p e r i t y and depression.
You, in turn, are a f f e c t e d b y our ec o n o m i c deve l o p m e n t , by
our a b i l i t y to sell our goods and to b u y y o u r goods.
The e c o
n o m i c d e v e l o p m e n t of the cou n t r i e s to the S o u t h w i l l m e a n that
we will be s t r onger in joining w i t h y o u for the p r e s e r v a t i o n
of peace.
It will m e a n that we will be m o r e p r o s p e r o u s in
sharing w i t h y ou the b e n e f i t s o f i n c r e a s e d w o r l d trade.
^The^war has b r o u g h t new m e a s u r e s of r e s t r i c t i o n and d i s
c r i m i n a t i o n that d e p ress w o r l d trade.
U n t i l o r d e r and s t a b i l
ity are r e s t o r e d in i n t e r n a t i o n a l m o n e t a r y relations, there
can be no h o p e for r e s u m p t i o n of w o r l d trade or for its
growth.
The b a s i s f or all trade m u s t be the c o n f i d e n c e that
fair c u r r e n c y p r a c t i c e s will ;ive to all. countries.
The W o r l d
Fund will give the c o u n tries o f the w o r l d an o p p o r t u n i t y to
restore and e x p a n d trade.
It will do this b y e l i m i n a t i n g the
r e s t rictive c u r r e n c y pra c t i c e s that p r e v e n t cou n t r i e s f r o m
i n t e r c h a n g i n g t h e i r goods.
We In L a t i n A m e r i c a a r e ‘e s p e c i a l l y s e n sitive to i n t e r n a
tional e c o n o m i c conditions. ■■We sell abroad, a large p r o p o r t i o n
o f w h a t we producej we b u y a b r o a d also a large p r o p o r t i o n of
what we consume.
We see In the W o r l d Fund a u n i q u e o p p o r t u
n i t y for countries to c o o p e r a t e in e x p a n d i n g ' w o r l d trade by
e s t a b l i s h i n g stable end o r d e r l y exchange a r r a n g e m e n t s .
5
These two institutions, the W o r l d Fund and, the W o r l d
Bank, can be a potent force for good.
If they succeed in
their task o f m a k i n g p o s s i b l e o r d e r l y pr o g r e s s in i n t e r n a t i o n
al e c o nomic relations, the chance for m a i n t a i n i n g a p e a c e f u l
world will
be g r e a t l y improved*
O u r people share w i t h yours
this d e e p hope for peace and p r o s p e r i t y .
T h e y will do their
part.
There is one man, S e c r e t a r y Vinson, w h o s e constant d e v o
tion to the ideal of i n t e r n a t i o n a l e c o n o m i c c o o p e r a t i o n has
done so m u c h to m a k e the W o r l d fund and B a n k a reality.
Be
cause of t h e i r c onfidence in h i m the G o v e r n o r s of the ’
W orld
Fund a n d B a n k s e l ected h i m to be the first c h a i r m a n o f the
two Boards.
I feel that I s p eak for all of the G o v e r n o r s of
the fund a n d Ban k w h e n I say to S e c r e t a r y Vinson that he will
have o ur w h o l e - h e a r t e d c o o p e r a t i o n in this great venture t o
ward a b e t t e r world.
A n n o u n c e r ; Y o u w i l l n o w h e a r from the S e c r e t a r y of the
■treasury, Fred M. Vinson, A m e r i c a n G o v e r n o r for the W o r l d Fund
and B a n k and c h a i r m a n of the B o a r d of G o v e rnors of these two
institutions•
Mr. V i n s o n : We have just r e t u r n e d f r o m Savannah, Georgia.
There we hel d the I n a u gural M e e t i n g of the Gov e r n o r s o f the
W o r l d Fund and, the W o r l d Bank.
I cannot h e l p but feel that
the spirit of c o o p e r a t i o n that p r e v a i l e d a m o n g the r e p r e s e n
tatives of the 40 n a t i o n s was due in large part to the w a r m
h o s p i t a l i t y of the people of Savannah.
In this old A m e r i c a n
city of palms and flowrers and S p a n i s h moss, we found a w e l
come that touched o u r hearts.
It m e a n t a goo d dea l to us to see the great interest of
the people in this n e w ve n t u r e in i n t e r n a t i o n a l cooperation.
The t h o u s a n d s of men, w o m e n and c h i l d r e n w ho g r e e t e d us were
l i ving symbols of the h u n d r e d s of m i l l i o n s of p l a i n people
all o v e r the w o r l d w h o ask the chance to live and' w o r k t o
g e t h e r in peace and pros p e r i t y .
The p e o p l e of S a v a n n a h b e c a m e
the a d v o c a t e s of m a n k i n d for a d e c e n t w o r l d -- a w o rld free
f rom w a r and w a nt.
One of the mos t e n c o u r a g i n g features of the Inaugural
M e e t i n g was the d e t e r m i n a t i o n of the Gov e r n o r s for all c o u n
tries to m a k e
the Fund and B a n k the m e a n s for s u c c essful c o
o p e r a t i o n a m o n g n a t i o n s on moneta.ry and f i n a ncial p r o b lems*
I^a m g r a t e f u l to Dr. M o n t e r o s for his as s u r a n c e of the c o n
tinued c o o p e r a t i o n of t he G o v e rnors of these two institutions.
It augurs well for the future of the World Fund, and Bank.
If y o u ask w h a t we d i d at the Inaugural M e e t i n g of the
We put the b r e a t h of
World Fund and Bank, I a n s w e r b r i efly:
life into the two i n s t i t u t i o n s w h i c h have the tas k of d e a l
ing w i t h the w o r l d ’s i n t e r n a t i o n a l f i n a n c i a l problems.
In
these two institutions' 40 n a t i o n s have p l a c e d t h e i r f a i t h
that financial p r o b l e m s can be solved in a m u t u a l l y a d v a n
tageous and p e a c e f u l way.
The h i g h e s t ideals of m a n k i n d c a n
not survive m e r e l y as l o f t y w o rds and phrases, as p a p e r plans
and b l u e p r i n t s .
T h e y m u s t be put to wo„rk in the service of
the people.
That
is w h a t we d i d at Savannah.
A n y i m p r e s s i o n that the W o r l d Fund and B a n k are con c e r n e d
solely w i t h t e c h n i c a l problems, of int e r e s t only to b a n k e r s
and economists, is incorrect.
In truth, t h e y are c o n c e r n e d
w i t h some of the m o s t i m p o rtant p r o b l e m s of e v ery d a y life.
How w e
mee t these pr o b l e m s will d e t e r m i n e in large part w h e
ther the world will a g a i n go t h r o u g h d e v a s t a t i n g cycles o f
wa r and depression, or w h e t h e r at long last the c h e r i s h e d
d r eam of m e n for peace and p r o s p e r i t y wil l be fulfilled.
The W o r l d i'und a n d B a n k m u s t not b e c o m e just two more
financial institutions.
T h e i r s is the task to l ay the e c o n o m
ic f o u n d a t i o n f o r a b e t t e r w o r l d .
Y o u cannot b u i l d a p r o s
perous w o rld w i t h s i c k a nd h u n g r y men.
Y o u cannot raise ar
r ow g e n e r a t i o n d e d i c a t e d to peace in the ruins of b o m b e d - o u t
cities.
Y o u cannot have a p r o s p e r o u s A m e rica in a w o r l d of
d e p r e s s i o n and war.
E a c h c o u ntry m ust a s s u m e r e s p o n s i b i l i t y , and no country,
h o w e v e r great o r strong, can do the job alone.
These are
international p r o b l e m s and t h e y can be solved onl y b y I n t e r
national c ooperation.
And i n t e r n a t i o n a l c o o p e r a t i o n m e a n s
m a k i n g the d i s c u s s i o n and con f e r e n c e p r o c e s s work.
The U n i t e d
N a tions have e s t a b l i s h e d the W o r l d Fund and B a n k as t h e „ means
for c o n t i n u i n g c o o p e r a t i o n on e c o n o m i c and fin a n c i a l p r o blems*
It does not take any s p e c i a l k n o w l e d g e of b u s i n e s s and
finance to see what the Fund and B a n k m e a n to w o r l d p e ace and
prosperity.
There is n ot a c o u n t r y in the w o r l d that does
not find It n e c e s s a r y to sell f a r m p r o d u c t s and m a n u f a c t u r e d
goods In f o r e i g n m a r k e t s .
T h e r e is n o t a c o u n t r y in the
world that does not find it n e c e s s a r y to b u y raw m a t e r i a l s or
finished goods f r o m f o r e i g n producers.
If c o u n tries cannot
produce, t h e y cannot trade.
If they c a nnot trade, they will
see the effect in u n e m p l o y m e n t and l o w e r e d st a n d a r d s of l i v i n g
The W o r l d B a n k w ill mak e a v a i l a b l e c a p i t a l for r e c o n s t r u c
tion and d e v e l o p m e n t so that all c o u n tries can produce.
The
^ orld Pu.n<3 wil l eli m i n a t e r e s t r i c t i v e c u r r e n c y p r a c t i c e s and
substitute fair s t a n dards so that c o u n tries can e x c hange their
products in a full flow of trade*
5
We k n o w f r o m e x p e r i e n c e t h a t ' t h e chance to m a i n t a i n peace
is far b e t t e r in a world in w h i c h all cou n t r i e s share in
p r o f itable trade*
The great d e p r e s s i o n of the 1930's w i t h
mass u n e m p l o y m e n t and a g r i c u l t u r a l collapse was i n t e n s i f i e d
and p r o l o n g e d b y u n f a i r c u r r e n c y p r a c t i c e s .
The second W o r l d
W a r was p r e c e d e d a n d in large part caused b y the economic w a r
fare of the 1 9 3 0 ’s*
The people of this c o u n t r y and all
countries are d e t e r m i n e d that the e c o n o m i c causes of w a r must
be eliminated*
The S a v a n n a h m e e t i n g showed that all cou n t r i e s are d e e p l y
conscious of the urgent n e c e s s i t y of m a k i n g the Fund and Bank'
work.
On m a t t e r s of m i n o r detail, there wer e d i f f e r e n c e s of
opinion.
T h e y w e r e ironed out b y disc u s s i o n , a n o t h e r p r o o f
that the d e m o c r a t i c process of d i s c u s s i o n and a g r e e m e n t can
be made to work.
On that f u n d a m e n t a l principle, all countries
were united.
That
is w h y the I n a ugural M e e t i n g has given us
all n e w f a i t h that
i n t e r n a t i o n a l c o o p e r a t i o n can and^must
work*
The W o r l d Fhnd and B a n k a re far too i m p o r t a n t to leave
them e n t i r e l y to the m a n a g e m e n t of t echnicians.
They would
w i t h e r and die if they w e r e c o n c e r n e d m e r e l y w i t h routine o p
erations.
The W o r l d Fund and the W o r l d B a n k are e x p r e s s i o n s
o f the n o b l e s t i d eals of mankind.
T h e y will live o n l y if
they respond to the n e eds of the people.
T h e y will fall to
the ground u n l e s s they have the s t r o n g support of the people
of all na t i o n s .
'
We m u s t n ot t h i n k that t h e w o r k of the W o r l d Fund and
Bank is finished.
It has o n l y begun.
T h e y will have m e a n i n g
to the p e o p l e of the w o rld o n l y if t h e y co n t i n u e to be the
basis for c o n s t r u c t i v e c o o p e r a t i o n a m o n g nations.' The p e o p l e
2-u
c°untries m u s t insist that t h eir r e p r e s e n t a t i v e s on
the W o r l d Fund and Ban k should n ot seek p e t t y and t e m p o r a r y
advantages.
T h e y m u s t be o p e r a t e d f o r the b e n e f i t o f man*
T h e y are too i m p o rtant
s h o r t - s i g h t e d policies*
to the w o rld
to be e n d a n g e r e d b v
/
^The task o f m a i n t a i n i n g peace and p r o s p e r i t y Is not a oned a y job.
N o r is it a t a s k that can be p e r f o r m e d by one man.
It requires the c o n t i n u e d c o o p e r a t i o n o f the p e ople of the
w o rld everywhere, always.
The Fund and B a n k n e e d wis e Goverrors and Dir e c t o r s .
T h e y need, and I am sure t hey will have,
the constant hel p and support of the pe ople of all nations,
he m e n ho n o r e d
w i t h the m a n a g e m e n t of the Fund and B a n k are
trustees of the ideals of m a n k i n d for a w o r l d free f r o m w ar
and want.
I pray that t h e y will always be^ faithful to that
trust.
6
A n n o u n c e r;
Thank yo u , S e c re t a ry
V in s o n .
h e a r d s r e p o r t on t h e I n a u g u r a l ' Me e t i n a o f
th e W o rld Fu n d a n d B a n k fro m D r . A n t o n io E s p in o s a de l o s
M o n t e r o s , t h e A m b a s s a d o r o f M e x ic o ’, and G o v e r n o r f o r M e x ic o
° f Ff,
F nd Snd B s n k > Pnd f r o * the S e c r e t a r y of the Treasury,
Fred M. Vinson, c h a i r m a n of the Boards of G o v e r n o r s o f the
F F
9? d °f the Bank.
T h e s e two institutions, to be located
in.Washington, D. C., w i t h r e s ources of $ 1 5 , 0 0 0 , 0 0 0 , 0 0 0
have
been e s t a b l i s h e d b y 38 c o u ntries to deal w i t h the i n t e r n a
tional m o n e t a r y and f i n a ncial pr o b l e m s that co n f r o n t the
world.
-o O o -
19 -
Their hig h principles must
time
for the b e n e f i t
Our best
of all
w o r k is d o n e
everlasting principles*
working for peace
mean
cannot
depression
it
every day
vigilance
but
start
is
w hen we
Y o u have
apply
to k e e p
That
the h o r r o r s
to d i m *
the price,
of w a r
Y o u have
year*
not
work*
only of
you,
You
and
to k e e p at
Remember,
and prosperity*
doesn*t
it m e a n s
continue the
a nd every
also of p e a c e
the p e o p l e *
a n d experts;
Y o u must
stop w h e n
w o r k a l l the
and prosperity*
j ust o f f i c i a l s
the people*
h e at
eternal
liberty,
18
This
live
is a w o r l d
together
great
hope
-
in w h i c h all
in p e a c e
or
of m a n k i n d
is
c o u n t r i e s Will
they will perish.
t h a t we w i l l b u i l d
k i n d of w o r l d o u r h e a r t s
desire.
that
other countries
in c o o p e r a t i o n w i t h
the U n i t e d N a t i o n s
Organization and
W o r l d Fu n d a nd Bank.
I
There
to m i s t a k e
words
into practice.
principles
phrases*
part
cannot
They
caution.
of l i f e *
That
Even
working
It d o e s n * t
unless we
the n o b l e s t
o n l y if
as w o r d s
and
they are made a
is w h a t w e a r e t r y i n g t o
w i t h t he W o r l d F u n d a n d B a n k —
practical means
through
We must b e
for deeds.
survive merely
can live
doing
t h r o u g h the
do m u c h g o o d to adopt h i g h p r i n c i p l e s
put them
of d o i n g
institutions.
the
the
is n o o t h e r way.
want t o a d d a w o r d of
careful not
We a r e
The
to m a k e
job.
do
them
They must be
17 You have
here
evidence
in S a v a n n a h .
nobleman,
this g reat
General Pulaski,
left a life
thousand miles
of
of
ease
truth right
a Polish
to t r a v e l
over l a n d a n d sea
to
come
five
to t h i s
c o u n t r y to l e n d a h e l p i n g h a n d to k i n d r e d s p i r i t s
who were fighting for freedom.
freedom anywhere
loving people
life
in t h e
of another
He
as
He
is a b e a c o n l i g h t
everywhere.
fight
And
for f r e e d o m
k n e w that
to
freedom-
so he g a v e h i s
for his
fellowmen
land.
died here
near Savahnah.
an inspiration for th o s e
He
lives forever
who believe
Year after
year an d for unnumbered years
the p e o p l e
of S a v a n n a h w i l l
gratitude
that
that give
us
his
is d u e
him.
fa i t h that
divine destiny
s h o w the
It*s
man will
just
in f r e e d o m .
to
come,
eternal
such things
in time
fulfill
16 -
The
delegates
here
of
f i n d the
same
of S a v a n n a h as
a
do*
peace
to l e t
meeting
the h o p e s
of
t he
same
the p e o p l e
they want what
their people
as
we w a n t —
live a n d
w o r k in
and prosperity*
I
plain
Th e y feel
A n d above all
chance
countries
j o y in t h e n a t u r a l b e a u t y
we do«
inspiration from
we
the 4 0
x
am w illing
folks
a n d fears*
to
take
everywhere*
They
We Americans
are
a ticket
share
on
the
our hopes
not a l o n e
in
wanting liberty and democracy,
in f i g h t i n g f o r
their preservation*
expressions
the noblest
of
t he h u m a n
will
are
of m a n k i n d *
soul*
of a l l n a t i o n s
These
of
T h e y are part
They belong
to
the pe o p l e
Ü
- 15 -
A n d the g r o w t h m u s t h e
directed to
times and conditions•
All
attentive
to
we
succeed upon
are
to
In the
government
officials
job.
t he p r o b l e m s
last
this brave,
analysis
institutions
cannot
they will help
o r the
do
and
the
you carry
will
different, n o m a t t e r w h e r e
the
throughout
job a l o n e ;
out
d o w n at b o t tom,
do
international
a n d a c c o m p l i s h the o b j e c t i v e s
Right
the
designated
the p e o p l e
Governments
n e w path.
it w i l l n o t b e
the n a t ions t h a t
It w i l l b e a l l of
the world,
of us m u s t h e
t h a t a r i s e , if
of a n y n a t i o n ,
of all
changing
but
the m e a s u r e s
you
folks
se e k .
aren*t much
t h e y li v e .
14 -
this
country means
confident
share.
that
to d o
other
I k n o w t he
f a i t h t hat
its
Job
is h a r d ,
done.
a w o r l d i n w h i c h t he p e o p l e
There
us
who will
together
it
can*t b e
sc o r n us
We hold t o
and prosperity.
And
the
None
established
is
of
that
than he
divide
cynics
do n e .
But
optimists.
he w h o
who
lit
institutions
self-operating.
them live a n d grow
are
We a r e
candles must be
these
t r y to
can*t be
trying.
is b e t t e r
a n d again.
make
in
it
countries
There
t he a n c i e n t p r o v e r b ,
a candle
darkness.
done.
I have
shall b u i l d
of al l
in pe a c e
and cry
our people believe
lights
We
to do t h e i r
but
a r e pessimists w h o w i l l
and say
I am
countries mean
it w i l l b e
live a n d w o r k
share.
curses
the
again
t h a t are
G o o d men must
13 -
But we
can b u i l d a peace f u l and prosperous
w o r l d if w e a l l w o r k o n the
/
not something one
It must b e
done
country
job*
This
is
..
c a n do b y
itself#
in c o o p e r a t i o n w i t h a l l
countries.
If we d o
do
our share a n d other
their share,
we
and enduring peace
it t o t he
tens
Savannah,
to
- children
of
mankind from
Believe
that
of
thousands
its
me
own
sound prosperity
of
We owe
children
of m i l l i o n s
countries,
children
the
we all desire.
the h u n d r e d s
in all
generations
can have
countries
a n d the
in
of
countless
still unborn,
to s a v e
folly.
the h o p e
a n d e n t husiasm we
I can tell
s ee
among you encourages
u s.
y o u as t h e
A m e r i c a n G o v e r n o r of
the W o r l d F u n d a n d B a n k t h a t
12
If w e
let w o r l d econ o m i c
b r e a k d o w n a g a i n as
not,
this
time,
collapse*
as
If
to
be able
to
we ma y
recover from
we l e t n a t i o n s
subdue
relatione
t h e y d i d in 1 9 3 0 ,
they d i d in 1939,
be able
-
the
go to w a r a g a i n
we m a y not,
this
the aggressors.
time,
There
is
o n l y one w a y to p r e v e n t w a r a n d depression*
That
is to
devote ourselves
doing everything
in o u r p o w e r
peace and prosperity*
peace
as h a r d a s w e
Although
has
that
the wit
a n d the
to m a i n t a i n
We must wage
the
w a g e d the war*
I firmly believe
it w i l l n o t b e
will
that m a n k i n d
to do t h i s ,
easy.
e a s i e r to w i n t h e p e a c e
the war
c o m p l e t e l y to
I know
It w i l l b e
t h a n it w a s
no
to w i n
11
The people
the right
of
-
all countries want to
road.
representatives
That
is t h e
of t h e
road on w h ich
United Nations
t o g e t h e r t o w a r d a common goal.
not he without obstacles.
problems*
But w e
travel
The
There are
s h o u l d not be
march
march will
difficult
discouraged*
We have had difficult problems before*
solve
these p roblems
if a l l
down a r o u n d the t a b l e
process w o r k was what
we
is w h a t
that w e
children
we
the
discussion
San Francisco*
the
discussion
to d o
cooperation
what
is
in
the
sound prosperity and enduring
want for
throughout
Making
are going
International
w a y to a c h i e v e
peace
Making the
t h e y d i d at
did at B r e t t o n Woods*
Savannah*
c o u n t r i e s w i l l sit
discussion process wor k was
process work
can
a n d put their heads
t o g e t h e r a n d t a l k it over*
M a k i n g the
We
ourselves
the w o r l d
and for our
10
This
is a w o r l d in w h i c h a l l
inevitably
men
-
share
countries
the g o o d o r e v i l t h a t
themselves make»
sowing and reaping his
It
is
own
t ime m a n
evil work»
w a r n o r d e p r e s s i o n is a n A c t
solemn task
is
to do a l l
of G-od*
that
p o w e r to f r e e m a n k i n d f r o m
stopped
lies
these
Neither
Our
in o u r
recurring
plagues.
There
points
are
to p e a c e
two roads before
and prosperity
cooperation among nations;
to
economic and political
us —
one
through
the o t h e r p o i n t s
conflict
a g a i n to w a r a n d d e p r e s s i o n *
leading
9 -
We
can bring
life
the W o r l d F u n d a n d B a n k
in S a v a n n a h
in M a r c h
1 946,
to
only
because we have plan n e d and worked for
it.
Some people,
try
to
stop the
in 1 942,
endless
depression.
from 44
And
cycle
in 1 9 4 4 ,
countries met
i n t he m i d s t
did
of war,
of all
representatives
to m a k e
a
to
sure
that
then fighting
say b r i e f l y w h a t
countries
F u n d a n d Bank,
the people
and
vitality and meaning.
If you a s k me
people
of w a r
in B r e t t o n W o o d s
t h e peace f o r w h i c h w e w e r e
w ould have
something t o
expect
of
I can o n l y answer:
chance
to w o r k a n d
in pe a c e a n d p r o s perity.
the
t he W o r l d
to
live
give
together
The
make
flowers,
the p a l m s ,
Savannah a unique
t he
ci t y *
simple and natural d i g nity
matched by
the h a n d i w o r k
The h i s t o r y
t o a l l of u s .
a
a n d to
road,
road until you reach
M e e t i n g of
are
that
of
cannot be
of m a n *
a noble
going,
a lesson
it
to p i c k
continue
down
that
t he g o a l .
t a s k at
this
Inaugural
the W o r l d F u n d and Bank.
crea t i n g a living thing,
people
a
It s h o w s h o w i m p o r t a n t
you are
We h a v e
It h a s
of S a v a n n a h c a n b e
is t o k n o w w h e r e
straight
Spanish moss,
t o d a y a n d of
to s e r v e
tomorrow
We
our
- ? -
It g a v e
the
colonists
their new homes
foresight
a
chance
in p e a c e .
to b u i l d
Because
of G e n e r a l Ogleth o r p e
colony was
not killed off
first settlement
the
survived,
are
to
still a
the apple
the
centuries
these
His
future.
squares
of b e a u t y a n d h a p p i n e s s
o f S a v a n n a h a n d to
lands across
trees
new
and Savannah
f rom all over this
from distant
to
source
the p e o p l e
visitors
two
t he
in i n f a n c y .
l i v e d to e n j o y a h a p p y a n d g l o r i o u s
Now after
of
country and
t he
t h e i r g o o d was
immediate present.
your
seas.
not
Like
limited
-
This
6
is a c i t y w h i c h o w e s
beauty
to t h e
even others
yet
follow.
unborn.
The many
for
unknown.
The
others,
City of Savannah
Oglethorpe
squares
that he
security.
strategic
settlers were
of men w i t h
fo r his
and for those who were
were designed for
squares
charm and
the w e l l - b e i n g o f
was planned by General
colonists
i ts
forethought
consideration for
own
-
faced by
He p l a n n e d them
l a i d o ut
He w a n t e d those
defense
the
to
when
dangers
f o r t he
the
of
the
time
when
t h e y w o u l d m e a n e xtra s t r e n g t h in f i g h t i n g
against
enemies
within and
enemies
without.
T h e p l a n n i n g o f -Gen e r a l O g l e t h o r p e m e a n t
a good deal
to S a v a n n a h i n
its
critical
days
5
He
carried his
wares
n e a r t he A m e r i c a n
to t h e
isolated people
frontier.
A n d w h e r e v e r he
traveled he p lanted appleseeds.
i n the W e s t
some day
give
where
come.
few then
He w a n t e d
them r e s t f u l shade.
people
homes
who
and they
For millions
a living
that
I had that
farms
to
of
and
T h e y e n j o y e d the
fresh fruit
apple
to
too.
trees became
came b e f o r e
come
same f e e l i n g a s
through Savannah yesterday
trees
The milli o n s
those who
those who were
many would
t he a p p l e
e n j o y e d the
of people his
symbol
m i n d f u l of
lived,
came a f t e r h i m built
in t h e w i l d e r n e s s .
shade,
He k n e w that
later.
I rode
were
Your
children have
and courage
the
to
dedicate
t ask of m a k i n g
T h e y are
taught
themselves
teachers
highest
strength
ourselves
a n e w to
t h i s a b e t t e r world..
the
devoted teachers,
g i v e n us
e t e r n a l truths,
who have
dedicated
to t h e n e w g e n e r a t i o n .
serve
form.
the D i v i n e
May
devotion and high purpose
These
purpose
some.of
by
in
its
their full
g u i d e us
during
our Inaugural Meeting.
The best
for others.
Appleseed,
times
thing that
Y o u k n o w the
an
m e n do,
they
do
story of J o h n n y
itinerant peddler
in col o n i a l
V
- 3 -
I have
have
confidence
confidence
generation
in them*
in them*
I am
Nearly
in t h e h i s t o r y
sure
every
of the w o r l d
has h e i g h t e n e d the a c c o m p l i s h m e n t s
preceding generation*
It
our generation
these
to g i v e
is the
b e a r fruit
w h a t we
for
these
children throughout
There
is n o p e r s o n
of
citizens
of
children and
the
w o r l d to
be
the
the h a p p y
ideals
these
lot
the
enjoy.
in this g r oup tonight
his p o w e r to make life
for
I like
do in S a v a n n a h will
who would knowingly fail
of promise
of t h e
duty
t o m o r r o w the b e s t p o s s i b l e start.
to t h i n k that
you
to do a n y t h i n g
worthwhile
young
folks.
in
a n d full
M a y theirs
to c a r r y f u r t h e r a n d h i g h e r
of m a n k i n d
The hope
is a n
and fervor
of y o u r g r e e t i n g
I n s p i r a t i o n to a l l
c a n see
such a demonstration
kindness
of
the h u m a n he a r t
deeply moved.
N o one
in the u l t i m a t e
being
of us.
can
of the
without being
see
This
such faith
was a we l c o m e
living people,
men,
women,
I believe
that
I was most
thousands
line"d t he r o u t e
one
t r i u m p h o f the g o o d w i t h o u t
encouraged.
b y the
No
of boys
from
the
ones w i t h the b i g
stake
and children.
impressed
and girls
station
Conference headquarters*
to
T h e y are
in
by a
the
who
the
the
future
f
^-^Dehalf
of a l l
)
the A m e r i c a n p e o p l e
representatives
of f o r t y f r i e n d l y
It g i v e s m e m u c h p l e a s u r e
I a m sure a l l
thought.
all
of
This
out in
community
to
to b e
the d e l e g a t e s
its w e l c o m e .
am qualified
to
judge
the
countries.
in S a v a n n a h .
second
that
certainly has
As
a Southerner
s h o w n us
real
Y o u r b r a n d of
24
carat.
Southern hospitality rivals
own State
is m o r e
of Kentucky.
of man*s
gives
that
is
the
of m y
Such hospitality
than a social grace.
hospitality
I
Southern hospitality.
The hospitality you have
stuff —
gone
This
k i n d of
a comforting reassurance
essential goodness
TREASURY DEPARTMENT
Washington
P O R RELEASE, IO P . M . , E.S.T.,
Saturday, M a r c h 9, 1946 >______
Press S e rvice
No, V-269
(The f o l l o w i n g a d d r e s s by S e c r e t a r y Vinson
before the S a v a n n a h C h a m b e r of C o m m e r c e d i n
n e r a t the De Soto Hotel, Savannah, G-eorgia,
is s c h e d u l e d for d e l i v e r y at 10 P . M , , ® , S , T , ,
Tuesday, M a r c h 9> 1946, a n d is f o r r e l e a s e
a t that t i m e . )
^The p e o p l e of S a v a n n a h are hosts on behalf of a ll the
A m e r i c a n p e o p l e to the r e p r e s e n t a t i v e s of f o r t y f r i e n d l y
c o u n t r i e s , It g i ves me m u c h p l e a s u r e to be in Savannah,
I a m sure a l l of the de l e g a t e s s e c o n d tha t thought.
This c o m
m u n i t y c e r t a i n l y has g o n e a l l o ut in its welcome.
As a S o u t h
erner ^I a m q u a l i f i e d to judge S o u t h e r n hosp i t a l i t y .
The h o s
p i t a l i t y yo u hav e s h o w n . u s is the r e a l stuff - - 2 4 carat.
T o u r b r and of S o u t h e r n h o s p i t a l i t y r i v a l s that of my own S tate
of^Kentucky.
S u c h h o s p i t a l i t y is mor e than a s o c i a l g r a c e
This k i n d of h o s p i t a l i t y gives a c o m f o r t i n g r e a s s u r a n c e of
m a n ’s e s s e n t i a l g o o d ness.
The h o p e a n d f e r v o r of y o u r g r e e t i n g is an i n s p i r a t i o n
to all of us.
No one ca n see s u c h a d e m o n s t r a t i o n of the
k i n dness of the human h e a r t w i t h o u t being d e e p l y moved.
No
one can see s u c h f a i t h in the u l t i m a t e .triumph of the g o o d
w i t h o u t being e n c o u raged.
This was a w e l c o m e by a l i ving
people, men, women, a n d children,
I b e l ieve that I w a s m ost i m p r e s s e d by the t h o u s a n d s of
boys a n d g i rls who l i n e d the r o u t e f r o m the s t a tion to the
Conference headquarters.
They are the o n e s . w i t h the big stake
in the future,
I have c o n f i d e n c e in them.
I a m sure yo u have
c o n f i d e n c e in them.
N e a r l y e v ery g e n e r a t i o n in the h i s t o r y oi
tne w o r l d has h e i g h t e n e d t he a c c o m p l i s h m e n t s of the p r e c e d i n g
generation.
It is the d u t y of our g e n e r a t i o n to give these
citizens of t o m o r r o w the b e s t p o s s i b l e start.
I like to thin*
that w h a t we do in S a v a n n a h w i l l bear f r u i t f o r these childrer
and t h e ^ c h i l d r e n t h r o u g h o u t the w o r l d to enjoy.
There is no
person in this g r o u p t o n i g h t who w o u l d k n o w i n g l y f a i l to do
a n y t h i n g in his p o w e r t o m a k e life w o r t h w h i l e a n d f u l l of
promise f o r t h e s e y o u n g f o lks.
M a y theirs be the h a p p y lot
to c a r r y f u r t n e r an d h i g h e r the ideals of mankind.
2
Y o u r c h i l d r e n have g i ven us s t r e n g t h a n d c o u r a g e to d e d
icate ourselves a n e w to the t a s k of m a k i n g this a b e t t e r world.
They are t a u g h t the et e r n a l truths, by d e v o t e d teachers, who
have d e d i c a t e d t h e m selves to the n e w g e n e r a t i o n .
T h ese teachers
serve the D i v i n e p u r p o s e in its h i g h e s t form.
M a y some of
their full dev o t i o n a n d h i g h p u r p o s e g u i d e us d u r i n g our I n a u
g u ral resting.
The b est thing t h a t men do
t h e y do f o r others.
Y ou on o w
the s t ory of J o h n n y A p p l eseed, an i t i n e r a n t p e d d l e r in co l o n i a l
times,
He c a r r i e d his -wares to the i s o l a t e d p e ople n e a r the
A m e r i c a n frontier.
A n d w h e r e v e r he t r a v e l e d he n l a n t e d appleseeds.
He k n e w that in the 'Jest w h e r e f e w then lived, m a n y
w o u l d some day come.
He w a n t e d the a p p l e tre§s to g i v e t h e m
r e s t f u l shade,
The m i l l i o n s of p e o p l e w ho came a f t e r h i m built
farms a nd homes in the w i l d e r n e s s ,
They e n j o y e d - t h e shade, and
they enjoyed the f r e s h f r u i t too.
F o r m i l l i o n s of p e o p l e his
a p p l e d ^ t r e e s became a living s y m b o l t h a t those w h o came before
were m i n d f u l of those w h o w e r e to come later,
I had that same f e e l i n g as I r o d e t h r o u g h S a v a n n a h yesterday,
This is a city w h i c h owes its c h a r m a n d b e a u t y to t he f ore t h o u g h t
of men w i t h c o n s i d e r a t i o n f or the w e l l - b e i n g of others, even
otners y et unborn.
The C i t y of S a v a n n a h was p l a n n e d by G e n e r a l
Oglethorpe f or his own colonists a n d for those who w e r e to
follow.
The m a n y squares that he laid o ut wer e d e s i g n e d for
security.
He w a n t e d those squares for s t r a t e g i c d e f e n s e when
the settlers w ere f a c e d by the dangers of the u n k n o w n
He planne<
the m for the time when they w o u l d mean extra s t r e n g t h .n f ighting a g a i n s t enemies w i t h i n a n d enemies without.
The p l a n n i n g of G e n e r a l 0 ijlethorpe m e a n t a g o o d deal to
S a v a n n a h in its c r i t i o a l days.
It g ave the c o l o nists a chance
to build t h e i r n e w homes Ln peace,
Be c a u s e of the f o r e s i g h t
of G e n e r a l ^ O g l e t h o r p e the n e w c o l o n y was n o t k i l l e d off in
-infancy,
His f i r s t s e t t l e m e n t survived, a nd S a v a n n a h l i v e d to
enjoy a. ha p p y a nd g l o r i o u s future.
H o w a f t e r two c e n t uries these, squares are s t i l l a source
of b e a u t y a n d h a p p i n e s s to the p e o p l e of S a v a n n a h a nd to you r
visitors f r o m a l l over this c o u n t r y a nd f r o m . d i s t a n t lands
aero:
seas,
like
the
a p ple trees
heir 5
go
o d i**/3 s n ot
-,. , , the
, -4-V
_ -- t
—
——
—
w wv-kj tUUVJ.Juuu
limited to the imm e d i a t e present,
The flowers, the calms, the
S p a n i s h moss, make S a v a n n a h a u n i q u e city.
It has a" s irmele an d
n a t ural d i g n i t y tha t c a n n o t be m a t c h e d by the h a n d i w o r k of man,
The h i s t o r y of S a v a n n a h can be a l e s s o n to a l l of us.
It shows h o w i m p o r t a n t it is to k n o w w h e r e y ou a re going, to
p i c k a s t r a i g h t road, a n d to co n t i n u e down that r o a d u n t i l y ou
r e a c h the goal.
I
W e have a n o b l e t a s k a t this I n a u g u r a l M e e t i n g of the
W o r l d F u n d a n d Bank.
We are c r e a t i n g a l i v i n g thing, to serve
our p e ople of t o d a y a n d of tomorrow.
'We can bring the W o r l d
Fund a n d B a n k to life in S a v a n n a h in M a r c h 1946, o nly b e c a u s e
we have p l a n n e d a n d w o r k e d for it.
Some people, in 1942, did
something to try to sto p the endless cycle of w a r ^ a n d depression.
A n d in 1944, r e p r e s e n t a t i v e s f r o m 44 c o u n tries m e t in B r etton
Woods in the m i d s t of war, to m a k e sure t h a t the p e a c e for w h i c h
we wer e then f i g h t i n g w o u l d have v i t a l i t y a n d meaning.
-If y ou a s k me to s a y b r i e f l y w h a t the p e o p l e of a ll countries
expect of the W o r l d F u n d a n d Bank, I can o n l y answer;
to give
the^people a chance to w o r k a nd live t o g e t h e r in p e a c e and p r o s
perity,
This is a w o r l d in w h i c h a i l c o u n tries i n e v i t a b l y
share the g o o d or evil t hat men them s e l v e s make.
It is time
man s t o p p e d s o w i n g a n d r e a p i n g his own evil work,
Neither war
nor d e p r e s s i o n is an A c t of God.
Our solemn t a s k is to do al l
that lies in our p o wer to free, m a n k i n d f r o m these recurring
plagues,
•
There are two r o ads b e fore us -- one p o i n t s to p e a c e and
p r o s p e r i t y t h r o u g h cooperation' a m o n g nations; the o t h e r ..points
to economic a n d p o l i t i c a l c o n f l i c t l e a ding a g ain to w a r and
depression.
The p e o p l e of a l l cou n t r i e s w a n t to t r a v e l the
r i g h t road.
That Is the r o a d on w h i c h r e p r e s e n t a t i v e s of the
U n i t e d N a t i o n s m a r c h t o g e t h e r t o w a r d a common goal.
The m a r c h
will n o t be w i t h o u t obstacles,
There are d i f f i c u l t problems,
But we s h o u l d n o t be discouraged-.
We have had d i f f i c u l t p r o blems
before.
We can solve these pr o b l e m s if a ll c o u n t r i e s w i l l sit
down a r o u n d the table a n d p ut t h eir heads t o g e t h e r a n d t a l k it
over,
M a k i n g the d i s c u s s i o n p r o c e s s w o r k was w h a t t h e y did at
San Fra n c i s c o ,
M a k i n g the d i s c u s s i o n p r o c e s s w o r k was w h a t we
did at B r e t t o n Woods,
M a k i n g the d i s c u s s i o n pr o c e s s w o r k is
what we are g o i n g to do in Savannah.
International cooperation
is the w a y ' t o a c h i e v e the sound p r o s p e r i t y a n d e n d u r i n g ’ peace
that we w a n t f o r o u r s e l v e s an d f o r our chi l d r e n t h r o u g h o u t the
world-.
If we let w o r l d economic r e l a t i o n s b r e a k down a g ain as
they did in 19 30 , we m ay not, this time, be a b l e to r e c o v e r
from^the collapse.
If we let n a t ions go to w a r a g a i n as t hey
did in 1939, we m a y not, this time, be able to s u b d u e the
agressors,
There is only one w a y to p r e v e n t w a r a n d depression*
That is to devote ourselves c o m p l e t e l y to doing e v e r y t h i n g in
our p o w e r to m a i n t a i n p e ace a n d p r o s p e r i t y ,
W e m u s t wage the
peace as h a r d as we w a g e d the war.
1
- 4 -
A l t h o u g h I f i r m l y be l i e v e that m a n k i n d has the w i t an d
the w i l l t o do this, I k n o w that it w i l l n o t be easy.
It w i l l
be no easier to win the peace than it was to win t h e ■,war, . But
we can b u i l d a p e a c e f u l a n d p r o s p e r o u s w o r l d if we a l l w o r k on
the job.
This is n o t s o m e t h i n g one c o u n t r y can do by itself.
It m ust be done in c o o p e r a t i o n w i t h a l l countries.
\•
If we do our share a n d other cou n t r i e s do t h e i r share, we
c a n .have the s o u n d p r o s p e r i t y a n d e n d u r i n g p e ace that we all
desire.
We owe it to the tens of t h o u s a n d s of c h i l d r e n * i n
Savannah, to the h u n dreds of mi l l i o n s of c h i l d r e n in all
countries, a n d the c o u n t l e s s g e n e r a t i o n s of c h i l d r e n s t i l l u n
born, to .save m a n k i n d f r o m its own folly.
B e l i e v e me the hope a n d e n t h u s i a s m we see a m o n g y o u en
courages us,
I can tell y o u as the A m e r i c a n G-overnor of the
W o r l d B u n d a n d B a n k t hat this c o u n t r y means to do its share.
I a m c o n f i d e n t tha t other c o u n tries mean to do t h eir share,
I k n o w the job is hard, b ut I have f a i t h that it w i l l be done.
We s h all b u i l d a w o r l d in w h i c h the p e o p l e of a l l countries''
live a n d w o r k t o g e t h e r in p e ace a n d p r o s perity.
T h ere are p e s s i m i s t s who w i l l t ry to d i v i d e us a nd say it
c a n Tt be done.
There are cynics who w i l l scorn us a n d cry it
can»t^be done,.
Bu t our p e o p l e b e l i e v e in trying.
We are"
optimists.
We h o l d to the a n c i e n t proverb, that, he w ho lights
a candle is b e t t e r than he w ho curses the darkness.
A n d the
candles m u s t be lit a g a i n a n d again.
B o n e of these institutions'
that arc e s t a b l i s h e d is s e l f - o p e r a t i n g .
G o o d men m ust make
t hem live a nd grow,
A n d the g r o w t h m u s t be d i r e c t e d to changing times a n d conditions,, A l l of us m u s t be a t t e n t i v e to the
problems that arise, if we are to s u c c e e d upon this brave, n e w
path.
In the l a s t a n a l y s i s it w i l l n o t be the g o v e r n m e n t of
any nation, or the .designated officials- of all the n a t i o n s tha t
w i l l Go the job.
It w i l l be a ll of the p e o p l e t h r o u g h o u t the
world.
G o v e r n m e n t s a nd i n t e r n a t i o n a l i n s t i t u t i o n s c a n n o t do
the job alone; but they w i l l h elp y ou c a r r y out the m e a s u r e s a nd
a c c o m p l i s h the obje c t i v e s y o u seek.-^
R i g h t down at bottom, folks a r e n ft m u c h different, no m a t t e r
where they live.
The d e l e gates of the 40 c o u n tries m e e t i n g here
find the same joy in.the n a t u r a l b e a u t y of S a v a n n a h as we d o ?
They f e e l the- same i n s p i r a t i o n from, the hopes of the p e o p l e as
we do.
A n d a b o v e a l l t h e y w a n t w h a t we w a n t -- a c h a n c e to let
t h e i r , p e o p l e live a n d w o r k in p e ace a n d p r o s p e r i t y .
5
I a m w i l l i n g to take a t i c k e t on the plain folks e v e r y
where*
T h e y share our hopes a nd fears.
We A m e r i c a n s are n o t
alone in w a n t i n g l i b e r t y an d democracy, in f i g h t i n g f or t h e i r
preser v a t i o n .
These are e x p r essions of the n o b l e s t w i l l of
mankind.
The y a r e p a r t of the human soul.
They b e l o n g to the
people of a l l nations.
Y o u have e v i dence of this g r e a t t r u t h r i g h t here in
Savannah.
G e n e r a l Pulaski, a P o l i s h nobleman, l e f t a life of
ease to t r a v e l five t h o u s a n d miles over lan d a n d sea to come
to this c o u n t r y to l e n d a he l p i n g h a n d to k i n d r e d spirits who
were f i g h t i n g f or freedom.
He k n e w that f r e e d o m a n y w h e r e is
a b e a c o n l i g h t to f r e e d o m - l o v i n g p e o p l e everywhere.
A n d so
he gave his life in the f i g h t f or f r e e d o m f o r his f e l l o w m e n of
a n o t h e r land.
He died here n e a r Savannah.
He lives f o r e v e r as an i n
spiration f o r t h ose who b e l i e v e in freedom.
Y e a r a f t e r year
a nd f or u n n u m b e r e d years to come, the p e o p l e of S a v a n n a h w i l l
sho w the e t e r n a l g r a t i t u d e that is due him.
I t ’s just s u c h
things that g i v e us f a i t h that man w i l l in time f u l f i l l his
divine destiny.
This is a w o r l d in w h i c h a l l cou n t r i e s w i l l live t o g e t h e r
in peace or t h e y w i l l perish*
T he g r e a t hop e of m a n k i n d is that
we w i l l b u i l d the k i n d of W o r l d our hearts desire*
r/c are
doing t h a t in c o o p e r a t i o n w i t h o t her c o u n t r i e s t h r o u g h the
U n i t e d N a t i o n s O r g a n i z a t i o n a n d t h r o u g h the W o r l d F u n d a nd Bank.
There is no o t her way.
I w a n t to a d d a w o r d of caution.
W e m u s t be c a r e f u l n o t
to m i s take w o r d s f o r deeds.
It d o e s n ' t do m u c h g o o d to 'adopt
high p r i n c i p l e s unless we p u t t h e m into practice.
Eve n the
n o b l e s t p r i n c i p l e s c a n n o t s u r vivb m e r e l y as w o r d s a n d phrases.
T h e y can live o n l y if t hey are made a p a r t of life.
That is
w h a t we are tryi n g to do w i t h the W o r l d ' F u n d a n d B a n k -- to
make t h e m p r a c t i c a l means of doing the job. . They m u s t be
w o rking i n stitutions.
Their h i g h p r i n c i p l e s m u s t be at w o r k a l l
the time f or the b e n e f i t of a l l the people.
Our b e s t w o r k is donb w h e n we a p p l y e v e r l a s t i n g prin c i p l e s .
Y ou have to k e e p w o r k i n g for p e ace a n d p r o s p e r i t y .
That doesn't
mean just o f f i cials a n d experts; it means you, the people.
You
must c o n t i n u e the work.
Y o u c a n n o t s t o p w h e n the horrors of w ar
and d e p r e s s i o n s t a r t to dim.
Y o u have to k e e p at it e v ery day
and e v ery year.- R e m e mber, eternal v i g i l a n c e is the price, not
only of liberty, b u t also of p e ace a n d p r o s p e r i t y .
- 0O 0-
IMM
- 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. 41$, as amended, and this notice, orescribe 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.
m
M M
-
2
-
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury 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 $200,000 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 28, 19U6
Ihe 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, March 22. 19li6
____ «
The Secretary of the Treasury, by this public notice, invites tenders
for | 1,300,000,000 , or thereabouts, of
91 -day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter provided.
The bills of this seriesj will be dated
mature
June 27, 19U6
interest.
March 28, 19k6
, and will
Sx
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
Standard
closing hour, two o ’clock p.m., Eastern fflsx time,
Monday, March 25« 19U6
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 f, 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 oercent of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
express guaranty cf payment by an incoroorated bank or trust company.
Immediately after the closing hour, tenders will be opened at the Federal
TRE A S U R Y D E P A R T M E N T
Washington
F O R RELEASE, MORNING-' NET7SP A P E R S ,
Friday, M a r c h 22, 1946
, T he S e c r e t a r y of the Treasury, b y this p u b l i c notice,
invites t e n ders f o r $ 1 , 300 ,000 ,000 , or thereabouts, of 91 -day
T r e a s u r y bills, to be issued on a d i s c o u n t basis u n d e r compet i t i v e a n d f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r provided.
The bills of this series w i l l be d a t e d M a r c h 28, 1946, a n d w i l l
mature June 27, 194£, w h e n the f a c e a m o u n t w i l l be p a y a b l e w i t h
out interest,
They w i l l be issued in b e a r e r f o r m only, a nd in
d e n o m i n a t i o n s of $ 1 , 000 , $ 5 ,000 , $ 1 0 ,000 , $ 100 ,000 , $ 5 0 0 , 0 0 o /
a n d $ 1 , 0 0 0 , 0 0 0 (maturity v a l u e ) 4
’ “
’
’
Tenders w i l l be r e c e i v e d at F e d e r a l R e s e r v e Banks an d
Branches u p to the closing hour, two o fc l o c k p,m,, Ea s t e r n
S t a n d a r d time, Monday, M a r c h 25, 1946«
Tenders w i l l n o t be
r e c e i v e d at the T r e a s u r y D e p a rtment, W a s h i n g t o n ,
Each tender
must be f o r an even m u l t i p l e of $ 1 , 000 , a n d the p r i c e o f f e r e d
must oe e x p r e s s e d on the basis of l o o , w i t h n o t more than three
decimals, e. g , , 99.925.
F r a c t i o n s m ay n o t be used*
it is
u r ged t h a t tenders be made on the p r i n t e d f o r m s a n d f o r w a r d e d
in the s p e c i a l envelopes w h i c h w i l l be s u p p l i e d by F e d e r a l
R e s e r v e Banks or B r a nches on a p p l i c a t i o n therefor.
Tenders w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
banks a n d t r u s t com p a n i e s a n d f r o m r e s p o n s i b l e a n d r e c o g n i z e d
dealers in i n v e s t m e n t securities.
Tenders f r o m others m u s t be
a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the f ace a m o u n t of
T r e a s u r y bills a p p l i e d for, u n less the tenders a re a c c o m p a n i e d
by an express g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y a f t e r the cl o s i n g hour, tenders w i l l be o p e n e d
at the F e d e r a l R e s e r v e Banks a n d Branches, f o l l o w i n g w h i c h
public a n n o u n c e m e n t w i l l be mad e by the S e c r e t a r y of the T r e a s u r y
of the- a m o u n t a n d p r ice r a nge of a c c e p t e d bids. ‘ T h o s e s u b m i t t i n g
tenders w i l l be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof.
The S e c r e t a r y of the T r e a s u r y e x p r e s s l y r e s e r v e s the r i g h t to
a c c e p t or r e j e c t a n y or a ll tenders, in w h o l e or in part, a n d
his a c t i o n in a n y s u c h r e s p e c t s h all be final.
S u b j e c t to these
r e s e r vati ons, tenders fo r $ 2 0 0 , 0 0 0 or less f r o m a n y one b i d d e r
at 99,905 en t e r e d on a f i x e d - p r i c e basis w i l l be a c c e p t e d in '
lull.
P a y m e n t of a c c e p t e d tenders a t the pric e s o f f e r e d must
ber made or c o m p l e t e d at the F e d e r a l R e s e r v e B a n k in d a s h or
other i m m e d i a t e l y a v a i l a b l e funds on M a r c h 28, 1946 .
The income d e r ived f r o m Treasury, bills, w h e t h e r ■int e r e s t
or Sain f r o m the sale or other .disposition of the bills, s h all
not have a n y exemption, as such, a n d loss f r o m the sale or
V -2 70
2
other d i s p o s i t i o n of T r e a s u r y bills s h a l l n o t have a n y s p e c i a l
trea ament, as such, u n d e r F e d e r a l tax A c t s n o w or h e r e a f t e r
enacted.
The bills shall be s u b j e c t to estate, inheritance,
gifr, or other excise taxes, w h e t h e r F e d e r a l or State, but
shall be e x empt f r o m all ta x a t i o n n o w or h e r e a f t e r i m p o s e d on
the p r i n c i p a l or i n t e r e s t t h e r e o f by a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or by a n y l o cal taxing authoruy.
i o r p u r p o s e s of ta x a t i o n the a m o u n t of d i s c o u n t at
w h i c h T r e a s u r y bills are o r i g i n a l l y sold by the U n i t e d States
shall be c o n s i d e r e d to be interest.
U n d e r S e c t i o n s 42 a n d
"kk-e I n t e r n a l R e v e n u e Code, as a m e n d e d b y Se c t i o n
0:^ .
R e v e n u e A c t of 1 9 4 1 , the a m o u n t of d i s c o u n t at w h i c h .
bi .L.S issu e d h e r e u n d e r are sol d s h all n o t be c o n s i d e r e d to a c c r u e
unti_ s u c h tills s h a l l be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d
oi,. a na s u c h bills are e x c l u d e d f r o m c o n s i d e r a t i o n as c a p i t a l
assets.
A c c o r d i n g l y , ^the owner of T r e a s u r y bills (other~than
liie ins u r a n c e c o m p anies) issu e d h e r e u n d e r n e e d include in his
income t ax r e t u r n o nly the d i f f e r e n c e b e t ween the p r i c e p a i d
for s u c h bills, w h e t h e r on o r i g i n a l issue or on s u b s e q u e n t purcnase, a nd the a m o u n t a c t u a l l y r e c e i v e d either upo n sale or
r e d e m p t i o n at m a t u r i t y duri n g the t a x a b l e y e a r f o r w h i c h the
retu r n is made, as o r d i n a r y 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 Do. 418, as amended* a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a n d g o v e r n
the c o n d i t i o n s of their issue. -Copies of t h e c i r c u l a r m a y be
obtained f r o m a n y F e d e r a l B a n k or Branch.
oOo-
Comparison of principal lisms of assois and lialDiliiios of national b&nks — Coniinixod
J_______________________________ (In thousands of dollars)
Dec. 31,
194*5
June 30,
1945
Dec. 30,
1944
Increase or decrease s Increase or decrease
since June 30. 1945 : since Dec. 30. 1944
Amount_____: Percent: Amount
; Percent
LIABILITIES
Deposits of individuals, partner
ships and corporations:
Demand............ .....
$37,126,500
#40,970,935
$36,320,754
$3,844,435
Time................ •••••
15,960,051
14,315,450
12,655,090
1,644,601
Postal savings deposits..•••••
5,218
2,979
- 5,057
-2,078
Deposits of U. S. Government:
iS. 13 ,s a , 894
10,816,887
12,868,475
973,419
>•
318,280
336,524
349,751
-18,244
Deposits of States and political
3,487,711
3,153,723
333,988
3,070,539
9,230,786
8,058,120
978,832
8,251,954
Other deposits (certified and
1.430.311
767.854
852.578
662.457
85,242,947
76,825,537
72,128,937
8 ,417,410
1r
'•
77,969
54,180
5,209
72,760
Other liabilities.... .
559.103
1•
491.877
491.534
67.569
Total liabilities, excluding
capital accounts.........
85.880.019
77.322.280
72.674.994
8 .557.739
CAPITAL ACCOUNTS
Capital stock:
Preferred stock.......... .
79,656
91,966
70,394
-9,262
Common stock#..........
1.544.528
1.588.445
1.474,939 ..
—
-.43.917
1 ¿LtrO onn
Total........ .
JLi 024 91 8 ^
- 1 »058.839
1,566,905 _____24*655
Surplus...................... .
2,011,403
1,875,277
1,808,959
136,126
Undivided profits.... .
688,986
692,146
632,000
-3,160
Reserves............ .
296.509
280.946
267.001 ____ 15.563
Total surplus, profits and
reserves........... .
.2.996.898 __ 2.848.369
2.707.960
148.529
Total capital accounts•.••, ♦
4.655.737 __ 4,472,553 ___4.274.865
183.184
accounts................. ..
Ratio of loans to total deposits..
NOT®!
Minas sign denotes decrease.
90.535.756
16*36$
8U794.833
16.13?
76,949.859
15.94?
Page
8,740.923
10.35
11.49
-41.09
$4,650,181
3,304,961
-2,239
12.80
26.12
-42.91
7.56
-5.42
3,025,007
-31,471
27.97
-9.00
10.59
11.86
417,172
1,172,666
14*55
86.27
10.96
577.733
13,114,010
67.76
18.18
1396.81
13.75
23,789
67.226
43.91
13.67
11.07
13.205.025
18.17
-21,572
-11.63
113.506
2.84
2.13 ____ 91.934
7.26
202,444
-•46
56,986
5.54
29.508
-23.46
7.70
5.87
11.19
9.02
11.05
5.21
4.10
10.69
288.938
380.872
13.59
10.67
8.91
17.66
Page X
Statement shewing comparison of principal items of assets and liabilities of active national banks
as of Dec* 31, 194-5, June 30, 1945, and Dec, 30, 1944
(In thousands of dollars)
•
•
Dec. 31,
0
•
1945
•
•
Number of banks..................... •
ASSETS
Loans on real e s t a t e ..........
Other loans, including overdrafts*•• ...
Total l o a n s ..............
TJ. S. Government securities:
Direct obligations..............
Obligations filly 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 securities.............. .
Total loans and securities.......
Currency and coin........•••••...... .
Reserve with Federal Reserve Banks••.••
Balances with other banks............
Total cash, balances with other
banks, including reserve
balances and cash items in process
of collection................ ...
Other assets................. ..... ..
Total assets.........
! June 30,
1945
;
•
Increase or decrease<:Increase or decrease
! since June 30. 1945 :since Dec. 30, 1944
• Amount : Percent : Amount : Percent
-8
5,031
2
-.16
.04
Dec. 30
*
•
1944 ’
5,023
5.021
$2,206,472
11.741.570
13.948.042
$2,083,182
10,305,951
12,389,133
$2,045,862 $123,290
9.451.940 1.435.619
11,497.802 1.558.909
5.92
13.93
12.58
$160,610
2.289.630
2.450.240
7.85
24.22
21.31
51,459,960
7,746
51.467.706
47,230,307
....
25,156
47.255.463
42,836,320 4,229,653
642.469
-17.410
43,478.789 4,212,243
8.96
-69.21
8.91
8,623,640
-634.723
7,988.917
20.13
-98.79
18.37
2,341,725
1 ,656,865
2,200,505
1,422,677
6 .42
16.46
285,003
311,496
13.86
23.15
145,313
55.611.609
6.9,559.651
1,008,644
10,451,020
8,719.125
141.256
51,019,901
63,409,034
821,290
9 ,647,552
__ 7 ,144.109
2.87
3.864
9.00 8.589.280
9.70 11,039,520
22.81
104,144
8.33 1,166,478
22.05 1.270,918
2.73
18.27
18.86
11.51
12.56
17.06
20.178.789
. . 797,316
■90,535,756
17.612.951
772.848
81.794.833
17.637.249 2.565.838
14.57 2.541.540
792.479
24.468
4.837
76,949.859 8.740.923 _____iPj6.9 „13.,585,897
14.41
.61
17.66
2,056,722
1,345,369
141,220
234,188
141.449
4.057
47.022.329 4.591.708
58.520.131 6,150,617
904,500
187,354
9,284,542
803,468
7.448.207 1.575.016
-
2
-
December 31» 19^5 wa® 16*36» ia comparison with 16,13 on June 30, 19U5 , and
15*9^ on December 30» 19*&*
Investments by the banks in United States Government obligations» direct
and guaranteed, at the end of December 19^5 aggregated $51,1+68,000,000, which was
greater by $H,212,000,000 than the amount reported in June 19I+5 , and an increase
of $7*989*000,000 over the amount reported in December of the previous year.
Other bonds, stocks and securities held totaling $U,l44,000,000, including ob
ligations of States and political subdivisions of $2,3^2,000,000, showed an in
crease since June of $379*000,000, and an increase of $600,000,000 in the year.
Cash of $1,009,000,000, balances with other banks of $8,719,000,000, and
reserves with Federal Reserve banks of $10,1+51,000,000, a total of $20,179,000,000,
increased $2 ,566,000,000 and $2 ,5^2 ,000,000 in the six and twelve months,
respectively.
The unimpaired capital stock of the banks on December 31, 19J+5 was
$1,659»000,000, including $70,000,000 preferred stock.
Surplus was $2,011,000,000,
undivided profits $689,000,000, and reserves $297,000,000, or a total of
$2,997*000,000.
This was an increase of $11+9,000,000 over the surplus, profits
and reserves in June 19I+5 , and an increase of $289,000,000 over the aggregate
of these items at the end' of December the year previous.
Total capital funds
amounted to $U,656,000,000, which was $183,000,000 and $381,000,000 greater than
at the end of the previous six and twelve months, respectively.
TREASURY DEPARTMENT
D epartmental S tock F o r k 2131
FOR RELEASE, WORSTING NJIWSPJ
AJj%L<LdM .
3\
r
SPECIAL
The assets of national
It is Important
that- this Paper
it was announced today by |
should be made
Special.
from the call covered the I
* A aoTnumisr n tm n x . orno.
m
possessions.
I
Service
1/ - ¿ l V
¡0,536.000,000,
ano• Returns
led States and
2 — 601 0
*vwr«v
Opies
The assets rl
reported hy the 5,021 actif
$13 *5^6 »000,000 over the a*
In the total
of the completed release to
fase of
Mr, Kane, Chief of our Static*
Is on Decemtical Division, Ra. 5039
her 30, 1944.
Treasury.
The deposits of natioV.
,243»000.000.
", 1
an increase
FROM
. Comptroller of Cy.
of $13,114,000,000, or IS K p
^^¿7niriinuii)
7 § B ia the cwrent
an increase of $8,417.000,|r .
deposit figures are deaand^^^Wv^^W^^^^i^^^l^pPii^^^pPand corporations
of $^40,971.000,000, which was an increase of $3»844,000,000, or 10 percent, since
.
and
June, and an increase of $4,650,000,000, or nearly 13 percent, in the year, .time
deposits of individuals, partnerships and corporations of $15,960,000,000, an
increase of $1,645*000,000, or 11 percent, since June, and an increase of
$3»309>^00,000, or 26 percent, in the year. Also included in the current figures
are United States Government deposits, including War Loan accounts, of
$14,160,000,000, which increased $955,000,000 and $2,993,000,000 in the six and
twelve months^respectively; deposits of States and political subdivisions of
$3,488,000,000, cm increase of $334.000,000 since June, and an increase of
$417.000,000 in the year; postal savings of $3*000,000; certified and cashiers1
checks, etc., of $1,430,000,000, and deposits of hanks of $9 »233->000,000.
Loans and discounts were $13*948,000,000, an increase of $1,559.000,000,
or 12 percent, since June, and an increase of $2,450,000,000, or 21 percent, since
December 1944.
The percentage of loans and discounts to total deposits on
D E L I V E R
FOR RELEASE, WORSTING N$WSP.
frAJLdMM .
r
|
The asset8 of nationa
TO
| MR. SHAEFFER
|
I PUBLIC RELATIONS
J
I ROOM
4408
L _____ ...._______ ;____ I
p , 536»000,000,
REMARKS
it was announced today hy 1
Mar. 20, I9H6
f
from the call cowered the ]
'lU
• ! '**
llano*
Returns
Bed States and
Please furnish 200 copies
possessions.
hi
The assets r
the total
of the completed release to
§fa8e of
reported hy the 5*021 a®ti|
Mr. Kane, Chief of our Statis
its on Decem-
$13,586*000,000 over the a
tical Division, Rm. 5039
her 30 , 1944.
Treasury*
$85,243,000,000,
The deposits of natio|
d an increase
an increase of $8,417»000,8
from
of $1 3 ,11^,000 ,000 , or 18 1
Office °*
(Name, not initials)
deposit figures are demand1
in the current
S P P a n d corporations
of $40,971*000,000, which was an increase of $3*844,000,000, or 10 percent, since
and
June, and an increase of $4,650,000,000, or nearly 13 percent, in the year.^time
deposits of individuals, partnerships and corporations of $15*960*000,000, an
increase of $1,645,000,000, or 11 percent, since June, and an increase of
$3»305*000»000, or 26 percent, in the year*
Also included in the current figures
are United States Government deposits, including War Loan accounts, of
$14,160,000,000, which increased $955*000,000 a-nd $2,993*000,000 in the six and
twelve months, respectively? deposits of States and political subdivisions of
$3*488,000,000, an increase of $334*000,000 since June, and an increase of
$417,000,000 in the year; postal savings of $3*000,000; certified and cashiers'
checks, etc., of $1,430,000,000, and deposits of hanks of $9 ,231 ,000 ,000 .
Loans and discounts were $13,948,000,000, an increase of $1,559*000,000,
or 12 percent, since June, and an increase of $2,450,000,000, or 21 percent, sine®
December 19^4*
The percentage of loans and discounts to total deposits on
TREASURY DEPARTMENT
Washington
Press Service
ho.
y ¿ 7 /
FQR RELEAS;e . m o r n i n g n e w s p a p e r s í
r
The assets of national tanks on December 31 , 19^5 totaled $90,536 >000 >000 >
it was announced today by Comptroller of the Currency Preston Delano.
Returns
from the call covered the 5*023 active national hanks in the United States and
possessions.
The assets reported were $8,741,000,000 greater than the total
reported by the 5,021 active hanks on June 30, 1945* and an increase of
$13*586,000,000 over the amount reported hy the 5*0 3* active hanks on Decem
ber 30. 1944.
The deposits of national hanks on December JL* 1945 totaled $85*243,000,000,
an increase of $8,417,000,000, or 11 percent, since June 1945, and an increase
of $13,114,000,000, or 18 percent, since December 1944.
Included in the current
deposit figures are demand deposits of individuals, partnerships and corporations
of $40,971,000,000, which was an increase of $3,644,000,000, or 10 percent, since
and
June, and an increase of $4,650,000,000, or nearly 13 percent, in the year.^time
deposits of individuals, partnerships and corporations of $15 *960,000 ,000 , an
increase of $1,645,000,000, or 11 percent, since June, and an increase of
$ 3 ,305 ,000 ,000 , or 26 percent, in the year.
Also included in the current figures
are United States Government deposits, including War Loan accounts, of
$l4 ,l60 ,000 ,000 , which increased $955 *000*000 an^ $2 ,993 *000,000 in the six and
twelve months respectively; deposits of States and political subdivisions of
$3,488,000,000, an increase of $334*000,000 since June, and an increase of
$417 ,000,000 in the year; postal savings of $3 *000 ,000 ; certified and cashiers1
checks, etc., of $1,430,000,000, and deposits of hanks of $9 ,231 ,000 ,000 .
Loans and discounts were $13,948,000,000, an increase of $1 ,559 ,000 ,000 ,
or 12 percent, since June, and an increase of $2,450,000,000, or 21 percent, sine®
December 1944*
The percentage of loans and discounts to total deposits on
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S PAPERS,
Friday, M a r c h 22, 1946,
Press S e r vice
No. V-271
The assets of n a t i o n a l h a n k s on D e c e m b e r 31, 1945 totaled
|90,536,000,000, it was a n n o u n c e d today b y C o m p t r o l l e r of the
Currency P r e s t o n D e l ano.
Returns f r o m the call c o v e r e d the
5,023 active n a t i o n a l b a n k s in the U n i t e d States and p o s s e s
sions.
The assets re p o r t e d wer e $ 8 , 7 4 1 , 0 0 0 , 0 0 0 g r e a t e r than
the total re p o r t e d by the 5,021 active banks on June 30, 1945,
and an increase of f 1 3 , 5 8 6 , 0 0 0 , 0 0 0 o v e r the a m o u n t r e p orted by
the 5,031 active b a n k s on D e c e m b e r 30, 1944.
The d e p o s i t s of n a t i o n a l b a n k s on D e c e m b e r 31, 1945 totaled
1 8 5 . 2 4 3 . 0 0 0 . 000-, an increase of $ 8 , 4 1 7 , 0 0 0 , 0 0 0 , or 11 percent,
since June 1945, and an increase of $ 1 3 , 1 1 4 , 0 0 0 , 0 0 0 , or 18 p e r
cent, since D e c e m b e r 1944.
I n c l u d e d in the c u rrent d e p o s i t
figures are d e m a n d d e p o s i t s o f individuals, p a r t n e r s h i p s and
corporations of $ 4 0 , 9 7 1 , 0 0 0 , 0 0 0 , w h i c h was an increase of
$3,844,000,000, or 10 percent, since June, and an in c r e a s e of
$4,650,000,000, or n e a r l y 13 percent, in the year, and time d e
posits of individuals, p a r t n e r s h i p s a nd c o r p o r a t i o n s of
4 1 5 . 9 6 0 . 0 0 0 . 0 0 0 , an increase o f $ 1 , 6 4 5 , 0 0 0 , 0 0 0 , or 1 1 percent,
since June, and an increase of $ 3 , 3 0 5 , 0 0 0 , 0 0 0 , or 2 6 percent,
in the year.
Also i n c luded in the c u r rent figures are U n i t e d
States G o v e r n m e n t deposits, i n c l u d i n g W a r L o a n accounts, of
$ 1 4 , 1 6 0 , 0 0 0 , 0 0 0 , w h i c h i n c reased $ 9 5 5 , 0 0 0 , 0 0 0 and $ 2 , 9 9 3 , 0 0 0 , 0 0 0
in the six and twelve months, re s p e c t i v e l y ; deposit's of States
and, pol i t i c a l /subdivisions o f $ 3 , 4 8 8 , 0 0 0 , 0 0 0 , an increase of
$ 3 3 4 , 0 0 0 , 0 0 0 since June, and an i n c rease o f 4 4 1 7 , 0 0 0 , 0 0 0 In
the year; p o stal savings o f $ 3 , 0 0 0 , 0 0 0 ; c e r t i f i e d and c a s h i e r s ’
checks, etc., of $ 1 , 4 3 0 , 0 0 0 , 0 0 0 , and d e p o s i t s of b a nks of
19.231.000. 000.
Loans and dis c o u n t s w e r e $ 1 3 , 9 4 8 , 0 0 0 , 0 0 0 , an increase of
|1,559,000,000, o r 12 percent, since June, and an increase of
v;2*450,000,000, or 21 percent, since D e c e m b e r 1944.
The p e r
centage of loans and d i s c o u n t s to total d e p o s i t s on D e c e m b e r 31,
1945 was 16.36, In c o m p a r i s o n w i t h 1 6 . 1 3 on June 30, 1945, and
15.94 on D e c e m b e r 30, 1944.
I n v e s t m e n t s b y the banks in U n i t e d States G o v e r n m e n t o b l i
gations, direct-find g u a r a n t e e d , at the end of D e c e m b e r 1945 aghe gated
1 , 4 6 8 , 0 0 0 , 0 0 0 , w h i c h was Wg r e a t e r b y $
2;, 0----00,000
Hr
•L*»
'
m
TT 4 ,
72 1
--cnan the a m o u n t reported in June 1945, and an increase of
,
,
tj
- 2
$ 7 , 9 8 9 , 0 0 0 , 0 0 0 over the a m o u n t r e p o r t e d in D e c e m b e r of the p r e
vious year.
O t h e r bonds, stocks and s e c u r i t i e s hel d t o t a l i n g
4,144',000,000, including o b l i g a t i o n s of ¡States and p o l i t i c a l
subdivisions o f t 2,342,000,000, s h owed an i n c rease since June
of $379, 0 0 0 , 0 0 0 , .and an increase of 1.600,000,000 in the year.
C a s h of $ 1 , 0 0 9 , 0 0 0 , 0 0 0 , b a l a n c e s w i t h o t h e r b a n k s of
48,719,000,000, and r e s erves w i t h Federal Reserve b a n k s of
$10,451,000,000, a total of 4-20,179,000,000, i n c reased
$ 2 , 5 6 6 , 0 0 0 , 0 0 0 and 4-2,542,000,000 in the six and twelve months,
respectively•
The u n i m p a i r e d capital stock of the banks on D e c e m b e r 31,
1945 was $ 1 , 6 5 9 , 0 0 0 , 0 0 0 , inc l u d i n g $ 7 0 , 0 0 0 , 0 0 0 p r e f e r r e d stock.
Surplus was 4 2 , 0 1 1 , 0 0 0 , 0 0 0 , u n d i v i d e d p r o f i t s $£>89,000,000,
and reserves 4 2 9 7 , 0 0 0 , 0 0 0 , or a total of $ 2 , 9 9 7 , 0 0 0 , 0 0 0 .
This
was an increase of C-149,000,000 o v e r the surnlus, p r o fits and
reserves in June 1945, a nd an increase of $ 2 8 9 , 0 0 0 , 0 0 0 over
the agg r e g a t e of these items at the end of D e c e m b e r the y e a r
previous.
T o tal c a p ital funds a m o u n t e d to $ 4 , 6 5 6 , 0 0 0 , 0 0 0 ,
w h ich was $ 1 8 3 , 0 0 0 , 0 0 0 and $ 3 8 1 , 0 0 0 , 0 0 0 g r e a t e r than at the
end of the p r e v i o u s six and twelve months, r e s p e c t i v e l y .
oOo-
Page 3
Statement showing comparison of principal items of assets and liabilities of active national "banks
as of Pec. 31, I9U 5 , June 3 0 , 19 U 5 , and Pec. 3 0 , 1944
(In thousands of dollars)
ik
Number oi banks.
ASSETS
Loans on real estate........ .
Other loans, including overdrafts..
Total loans.............. .
U. S. Government securities:
Pirect obligations....... ....
Obligations fully guaranteed.
Total U. S. securities.....
Obligations of States and political
subdivisions........ ...........
Other' bonds, notes rand debentures.
Corporate stocks, including stocks
of Federal Reserve Banks........
Total securities......... .
Total loans and securities...
Currency and coin....... .
Reserve with Federal Reserve Banks
Balances with other banks.........
Total cash, balances with other
banks, including reserve
Pec. 31»
19^5
•
•
•
June 30,
1945
:
:
i
♦M
• Increase or decrease rlncrea.se or decrease
: since June 30, 19to : since P e c. 30,. 1944
: Amount ; Fercent : .Amount : Percent
- .1 6
-8
.04
5,031
2
P ec. 30,
1944
5,023
5,021
$2,206,472
11,7^1,570
13,948,042
$2,083,182
10,305,951
12,389,133
$2,045,862 $123,290
9.1+51,91+01,1+35,619
11,1+97,802 1,558,909
5.92
13.93
12.58
51,1(59.960
7.7*+6
51,^67.706
1+7,230,307
25*156
1+7,255,1+63
1+2,836,320 1+, 229,653
642,469 * - 1 7 .too
4"3,478,789 4,212.243
8.96
-69.21
8.91
2,31+1,725
1,656,865
2,200,505
1,422,677
1^5,313
55,611,009
69,559,651
1,008,644
10,451,020
2,719,125
141,256
51,019,901
63.1+09,03^
821,290
9,61+7,552
7,ii+i+,i09
20,178,789
797,316
90,535,756
17;612.951
772,848
8 1 .791+.833
8*623*640
-631+.723
7,988,917 .
7-85
24.22
21.31
2 0 .I3
-9 8 .7 9
18.37
285,003
311,1+96
I3 .8 6
2 3 .I5
141,449
4,057
U 7,022,329 U ,591,708
58,520,131 6,150,617
904,500
187,354
9,284,542
803,468
7,1+1+8,207 1,575.016
3,864
2.87
9.00 8,589,280
9.70 11.039,520
104^144
22.81
8.33 1,166,478
22.05 1,270,91s
2*73
18.27
18.86
I I .5 I
12.56
17.06
17,637,21+9 2,565,878
792,479
24,468
76.91+9,859 8,71+0,923
H+-57 2,54 i , p 4o
l+,837
3.17
10.69 13.585.897
i 4 .4 i
.61
17.66
2,056,722
1,3^5.369
l4 l,2 2 C
23!+,188
ÎSS
••
of collection............
Other as sets.. . . . . . . . . . . .
.•.. ••
Total assets..... ........
$ l6 0 ,6 l0
2,289,630
2,450,240
6.42
16.46
Page 4
Continued
Comparison of principal items of assets and liabilities of national banks
""r(ln thousands of dollars)_______ . ____ _
Increase or decrease: Increase or decrease
Pec,
3
0
»
June
30»
Pec* 3 1 »
since June 30 > 19^5. • since Pec* .30 » 1 9 ^
l¥& '
19^5
Percent
Percent r Amount
19^5
Amount
LIABILITIES
Peposits of individuals, partner
ships and corporations:
Pemand# •».*»*». **.*'.,. •*.*.■*•■•
Time r*.... *.-•*
15» d0,(
Postal savings deposits**,........
2 ',979
Peposits of Ü. S, Government;
War loan and Series E bond accts* 13,841,894
318,280
Other U. S. Gov’t deposits,,...,*
Peposits of Spates and political
H U315^50
sèi Ì00 $36,320,751*
12,655,090
5.0.57
5,218
% -M
- 2,072
12,868,1*75
10,816,887
973,^19
10.35
$4 ,650,181
3 »304,961
12. 80
2o. 12
-4i*09
' - 2,239
-U 2.9I
7.56
3 ,025,007
11*49
27*97
3^9.751
-18,244
*5*42
-31371
-9.OO
3.153.723
8,251,95^
3,070,539
8,058,120
333,988
978,832
■10.59
11.86
1*17,172
1,172,666
13.59
ii*.55
767.85^
76,825,537
852,578
72,128,937
662,457
8,417,410
86.27
577,733
10*96 13,114,010
67.76
18*18
5.209
U91.53^
5^,180
1*91,877
72,760
67,569
77,322,280-
72.67Ù.991*-
8,557,739
79,656
1 ,5 ^ ,5 2 8
1,624,184
1,275,277
6 9 2 ,3 6
280,946
91,966
1 . W , 939
1,566,905
1,208,959
632.000
267.001
-9,2 6 2
1*3,917
, 34,655
136,126
-3,160
15,563
-11.63
2.84
2.13
7 .2b
-.4 6
5*54
-21,572
113,506
91,931*
202,444
56,986
29,508
2,707,960
2,996,898
2,8^8,369
3T0S'GjrVGS#.» • ••• •••m •• •••*•
4.274.865
4.472.553
4.655.737
Total cap it al account s. •, •
Total liabilities and capital
accounts. *.*.-«*•*........ ...»•.•* .. 90,535:756 ---8:-1
--,7
-.P3 ,8
, 3"'¿T3 — 76,91*9,859
Ratio of loans to total deposits*.
NOTE: Minus sign denotes decrease
148,529
183.184"
5.21
4.10
288,932
380.872
3,1*87,711
9.230,786
Other deposits (certified and
cashiers’ checks* etc.),.*......* 1 3 30 ,3 1 1
Total deposits,,.............. S 5 , z k z , s m
Bills...payable*, rediscounts & ether.
liabilities for borrowed money...
l f ,% 3
55.9,103
Other liab 1 lit1 es..««.............
Total liabilities, excluding
capital accounts...........»•, 85,880,019
CAPITAL ACCOUNTS
Capital stock:
Preferred stock....
70,39^
1 ,5 8 8 ,^ 5
Common stock.......
1,658,839
Tot al.. ...•• »•..
2 ,0 1 1 3 0 3
Surplus. ., * . • •.....
688,986
Undivided profits...*
296,509
Reserves........
Total surplus, profits and
336.521*
8,71*0,923
1396.81
13.75
23,729
67,226
1*3-91
13-67
11.07 13,205,025
18*17
10.69 13,585,897
-23*46
7.70
5-87
11*19
9*02
11.05 .
.
10.67
8*91 _
17.66
- 34 t a k i n g the steps n e c e s s a r y to b u i l d a s o u n d a n d
expansive economy with full production, employment,
and a high national income.
We are taking our
place a m o n g the U n i t e d Na t i o n s to solve the prob lem s
be tw een c o u n t r i e s by the p r o c e s s of c o n f e r e n c e a n d
discussion^.
There will be difficult days.
difficult days before.
But we have ha d
This time we are better
prepared. We have had more experience and we now
have more unity of purpose.
The h e a r t s of ho ne st
folk throughout the world are beating together as
they never have before.
Folks all over the world
ar e st ar tin g to m a r c h t o g e t h e r to their h i g h e r
destiny, r e al izi ng the tr ut h of our own St at e motto:
wU a i t e d w e s t a n d j d i v i d e d w e f a l l . *
0
- 33 r e l a t i o n s h i p s a n d of w o r l d trade, as w e l l as being
an instrument to prov ide the use of capital#
For
Britain it m e a n s the chance to feed her people
a n d h e r factories until she can reconvert h e r
industries and take her place in a wo rl d of expand
ing trade#
For the United States it me an s the
opening of the markets of our best customers,
England, the British Empire, a n d the sterling area,
t o the p r o d u c t s of o u r f a c t o r i e s a n d farms, m a k i n g
a larger Am erican share in a larger w o r l d trade#
For all countries it me an s a chance to trade more,
to h a v e g r e a t e r e m p l o y m e n t a n d h i g h e r st a n d a r d s of
living#
Our Party and our Administration have momentum
up on the ro ad of p e a c e an d pr os perity.
We are
- 32 m o r e trade on the long haul.
T h a t in gene ral terms is what w e ga in f r o m
p e r m i t t i n g Br it ain the u s e of the m o n e y in the
proposed line of credit*
It is to be e m p h a s i s e d
that Britain re ce ive s the u s e of the money, n o t
the m o n e y itself*
The Agreement provides that all
o f t h e p r i n c i p a l I s t o be r e p a i d *
The Agreement
f u r t h e r p r o v i d e s t h a t B r i t a i n is to p a y i n t e r e s t
on the m o n e y except un de r well defi ned temporary
depressed conditions*
The p r o p o s e d Ag re eme nt , then, does n o t f o l l o w
the f o r m of an ordinary commercial loan such as
a bank would make*
We gain m u c h more than that*
The Agreement Is good business for all concerned
and it ties together ma ny problems of economic
m u d i to American business, agriculture, and labor
We shall receive rich dividends from this
good business investment*
One of the pu r p o s e s
of the proposed line of credit, as stated in the
A g r e e m e n t , ”i s t o f a c i l i t a t e p u r c h a s e s b y t h e U n i t e d
K i n g d o m of goods an d services in the U n i t e d States**
That means more business and mo re trade in the near
future.
In addition, the A g r e e m e n t pr ovides, as we
desired, the p r o m p t re m o v a l of curr enc y r e s t r i c t i o n s
that impede our trade* Moreover, Britain promises
to avoid trade controls that discriminate against
American products, and Britain agrees w i t h us on
the pr in cip le jo f f a i r trade practices w h i c h a r e to
be ef fe ctu at ed by a p r o p o s e d In te rna ti on al Trade
Organization.
These all mean more business and
30 -
have no intention that the United States
should pl ay the role of Santa Glaus in our international financial relations,^ we must constantly
k e e p in m i n d the fact that our own p r o g r a m of
ma intaining hi gh levels of production, employment
a n d n a t i o n a l i n c o m e is d e p e n d e n t on o u r s u c c e s s in
expanding world trade*
Our international financial
a n d ec on omi c p r o g r a m is a big a n d v i t a l p a r t of
what w e are doing to give the Am er ica n people peace
and prosperity,
A further part of the international economic
program for today which your administration supports
is the proposed line of credit to Great Britain.
This is a pr op osa l n o w before the Congress for
approval.
This program, if approved, will mean
- 29 the f a i t h w h i c h has been reposed in ns*
A t the time the participation of our country
in the World Bank and Fund was approved, the
Congress established the National Advisory
Council on I n te rna ti on al M o n e t a r y a n d F i n a n c i a l
Problems*
This Council is charged with coordinating
the activities of all agencies of our government
on f o r e i g n lo an s a n d m o n e t a r y t r a n s a c t i o n s *
As
Ch ai rma n of this Council, I can as s u r e y o u that
i t i s t h e a i m o f t h e C o u n c i l to. s e c u r e t h e a d o p t i o n
of such measures in the international financial
field as will contribute to world peace and
prosperity, at the same time se c u r i n g the m o s t
e f f i c i e n t u s e of the f u n d s of the A m e r i c a n taxpayer*
«• 28 *
a n d Bank, just c o n c lud ed at Savannah, Georgia, we
s t a r t e d these in s t i t u t i o n s w o r k i n g on a concrete
1
p r o g r a m of in te rna ti on al cooperation to restore
world trade.
Forty nations put their heads |ogether
at Savannah and agreed upon all steps necessary for
these institutions to begin operations.
The con
ference was a complete success in a l ^ r e s p e c t s .
H o t only was there a m e e t i n g of m i n d s on h o w we
should proceed, but of mo re importance there was a
me et ing of hearts that we should march forward to
gether.
The fact that the seat of these two great
institutions was es ta bli sh ed in the capi tal of our
c o u n t r y is on e f u r t h e r e x a m p l e of t h e e x t e n t to
w h i c h the w o r l d is l o o k i n g to u s f o r l e a d e r s h i p in
these troubled times, l e can and we mu st justify
• 37 —
If we are to succeed in restoring world trade
on a sound and heal thy basis, we m u s t secure prompt
economic reconstruction of the war-devastated coun
tries and we m u s t eliminate the currency restrictions
and u n f a i r trade practices that bl oc k wo r l d trade.
The se t h in gs can be a c c o m p l i s h e d only by genuine,
wholehearted cooperation among nations.
To bring
them about we have proposed, therefore, that the
United Nations provide the means for continuing
c o o p e r a t i o n t h r o u g h t h e I n t e r n a t i o n a l iBank f o r
Reconstruction and Development, through the
International Mo ne tar y Fund, and through an
International Trade Organization.
I can report to you now, that at the Inaugural
M e e t i n g of the Board of Governors of the W o r l d Fu n d
•
work*
26
-
That is the reasonable way*
peaceful way*
That is the
In truth, that is the only way.
We must strive for international cooperation
on economic problems wi t h as m u c h heart and vi go r
as we strive for international cooperation on
political problems*
The Democratic Party has for
y e a r s taken the l e a d e r s h i p in w o r k i n g t o w a r d su ch
cooperation.
Our efforts today are directed towards
restoring wo rl d trade, freeing it from the restrictions
that isolate countries and divide nations into con
flicting economic blocs*
If we are to have peace
and prosperity we must eliminate economic warfare
among nations just as effectively as we eliminate
political warfare.
- 25 the pr o v i s i o n s of that le gi sla ti on .
Above all
we believe that the soundest an d most enduring
f o r m of a s s i s t a n c e to the v e t e r a n s is our p r o g r a m
of high-level production, employment and national
income.
The v e t e r a n is a pa r t of the community.
Th e m o r e we do to pu t ou r c o m m u n i t i e s on a p r o s
pe ro us basis, the m o r e we do to he lp the veteran.
Our domestic economic program goes ha nd in
ha nd with our forei$a policy, the cornerstone of
w h i c h is to a c h i e v e g e n u i n e i n t e r n a t i o n a l c o o p e r a
tion in all fi e l d s —
economic, social, political.
W e must work out full understanding among nations
as we ll as a g r e e m e n t s on sp ec ifi c pr ob lem s.
To
secure international cooperation means that we
mu st make the discussion and conference process
~ 24 it is to repulse an a r m e d enemy f r o m abroad,
Americans have a good standard of living,
but Americans, being Americans, always hope for
a n d seek a b e t t e r s t a n d a r d of li ving*
Okie o f
the measures that does something positive about
this problem, particularly among our less fortunate
people, economically speaking, is the m i n i m u m wage
bill*
The Democratic Party and its administration
stand for a substantial increase in the mi ni mum
wage p a i d to m i l l i o n s of workers*
^
The Democratic Party stands for a con*truetive
program that will assist our veterans in taking
u p the pursuits of peacetime living* W e have the
original G*I* Bill of Rights* W e ha ve the Act
a p p r o v e d by President Truman in December extending
- 23 for their own benefit Is louder then ever before,
the p r o g r a m c o n t i n u e 8 to ha v e the support of the
majority, a support which is taken after exercising
a considered judgment on past experience*
It
would be pathetic if after holding at bay this
tough enemy all through the war, we should lay
aside our weapons*
l e b e l i e v e in, a n d ha ve , a p r o g r a m f o r a s o u n d
high-level economy* We stand for prodigious
production* We believe that every ma n who wants
to work should have a fair op po rtu ni ty to secure
a job* W e believe in a hi gh er a n d hi g h e r na ti ona l
income.
These simple objectives require m u c h work
and attention* V i g i l a n c e is as n e c e s s a r y to
secure a n d m a i n t a i n a sound expanding economy as
~
22
«
security in any other country contributes to the
economic secu rit y of Am er ica a n d the world.
The Democratic Administration has positive
economic, social and political programs in both
the domestic and foreign fields.
Tonight I will
me nt ion a few of the economic problems wh ic h we
a r e m e e t i n g a n d so l v i n g b o t h at h o m e a n d a m o n g the
nations of the world.
Our Party and our Administration are still
advocating an d doing all in their power to
effectuate the program of preventing disastrous
inflation.
Probably more than ever before the
special pleaders are at work in this field.
danger of inflation is still great.
The
W h i l e the
v o i c e s of those wh o w o u l d sell the co mm on go od
• 21 **
w e s h a l l h a v e a b e t t e r p r o g r a m to m e e t the p r o b l e m s
of the future, ma ny yet unknown, and we shall help
the people
If w e ar e to succeed in f u l f i l l i n g the hopes
a n d w i s h e s of our pe op le f o r freedom, p e a c e a n d
security, w e m u s t ha v e po si tiv e programs in both
the do me sti c f i e l d a n d the f o r e i g n field«
Success
in either field, domestic or foreiga, will help us
attain success in the other; failure in either
fi e l d m a y well me a n failure in the other«
This
is true wh e t h e r the issues are economic, social
or political in character.
Economic security in
America contributes to economic security throughout
•»
20
matter where they live*
A n d these are the things
that our Party and our Administration have been
achieving for our people*
Our re co rd of being the true representatives
of the p e o p l e a n d of g i v i n g l e a d e r s h i p w h e r e leader*
ship is needed is good*
past,
But we cannot live in the
in 19 46 we m u s t m e e t the problems of 1946*
In 1 9 4 S we m u s t m e e t the p r o b l e m s of 1946*
At all
t i m e s w e m u s t b e a t w o r k t o t h w a r t , to t h e e x t e n t
possible, the potential problems of the future.
A p o l i t i c a l p a r t y m u s t h a v e p r i n c i p l e s a n d it
must have practical proposals to meet specific
p r o b l e m s . We s h a l l c o n t i n u e t o m e e t t h o s e t e s t s .
We have today a positive program to carry
forward our creed and hi gh principles.
Tomorrow
- 19 be able to take good care of those wh o ar e dear
to us * W e want to be able to pr ov ide a decent
home, g o o d f o o d a n d p l e n t y o f it, n i c e cl ot hes
and good times for ourselves and our families*
W e w a n t t o be a b l e to se nd ou r c h i l d r e n to co ll ege *
We want to enjoy good health* We do not want to
be afraid of what will happen to our families or
ourselves if we lose our job*
to be a f r a i d to g r o w old*
An d we do not want
T h i s is w h a t w e m e a n
when we say we want security*
Th e s e a r e the things we want out of life, an d
I a m convinced these are the things plain folks
all over the world want out of life*
The hopes
and wishes of people are not m u c h different no
*» 18 •
free to choose our leaders*
This Is what we
mean when we say we want freedom.
We hope and pray that it will never again
be necessary for our children or their children
or their children's children to bleed a n d die in
order to pr es erv e these liberties.
We want our
country to remain strong enough to protect itself
against anyone who might wish to attack us. At
the same time and of even mo re importance, we
want to work for such international brotherhood
t h a t n o one w i l l w i s h to a t t a c k u s or a n y o n e el se .
Th is is w h a t we m e a n w h e n we say we w a n t pe ao e.
W e w a n t to do u s e f u l w o r k a n d w e w a n t to
enjoy doing it. W e want to earn en ou gh at it to
Freedom, peace, and security, these are
great concepts, embodying moat of what is precious
in life.
But they are often ba nd ied about loosely
and misused.
Their true meaning is brought
c l o s e r to h o m e f o r a l l of us w h e n w e th in k of
th em in terms of what we want out of life for our
selves and our children.
F i r s t a n d foremost, I a m sure, none of u s
w a n t s to l o s e a n y o f t h o s e p e r s o n a l l i b e r t i e s
that we won in 1776. W e ne ve r want to be afraid
to s a y w h a t w e p l e a s e . W e n e v e r w a n t to be a f r a i d
to wo rs hip God as w e see fit. W e do not want to
be told where or how to work or live. W e want to
govern ourselves so lo ng as we do n o t infringe
the same right f o r others, a n d we w a n t to be
Again the Democratic Party does not rely
upon the m e r e fact that it for the first time
d e c l a r e d an e c o n o m i c b i l l of r i g h t s f o r the
American people*
This d e c l a r a t i o n of an econ omi c
bill of rights, just like the declaration of our
political bill of rights, was a turning point
in o u r h i s t o r y * H h a t w e a s k to be j u d g e d by,
are the steps that we have taken and are taking
to make these rights realities*
A n y ex am ina ti on of the re c o r d of the D e m o
cratic Party will revaal one dominant underlying
objective — whether we are looking at action
in the f o r e i g n f i e l d or on the d o m e s t i c f r o n t —
namely, to secure for plain folks here and every
where freedom, peace, and security.
for all people throughout the world*
Rather,
it re l i e s up on w h a t it h a s do ne in s e t t i n g a
standard of freedom in speech, in worship, from
want, and from fear to wh ic h plain folks everywhere
can repair*
We fought a war an d are fighting a peace to
help make these freedoms realities* We shall
gain them f o r ourselves a n d we shall set an
example a n d help all peoples of all nations gain
them* We kn ow at last what we should have long
known, that any man, whatever his place or
station m a y he, m u s t be free to w a l k w i t h d i m i t y .
A n y threat to the freedom, peace, or security
of a n y m a n a n y w h e r e is a threat to the freedom,
peace, and security of every man everywhere*
* 1 4 **
Our P a r t y in re p r e s e n t i n g the people has
held high the principle of good purpose.
is important#
It is indispensable#
This
E v e n so, m o r e
is needed#
Th e re al test of the extent to w h i c h an y
Party represents the people an d affords them
leadership can be found only in the proposals made
a n d the a c t i o n t a k e n by that P a r t y to f u l f i l l the
hopes and the wishes of the people. W e call that
the record#
The Democratic Party has a record*
The record of government by the Democratic
Party under the leadership of President Roosevelt
and President Truman is written in deeds#
The
D e m o c r a t i c Pa r t y does n o t rely m e r e l y on the fact
that it pr oc lai me d the four great human freedoms
- 13 Honesty of purpose is an attribute often over
looked, but it is probably the greatest quality any
man, any institution, or any nation can have*
It
is re ported that the p a r t i n g ad vice A n dr ew Jackson
received from his m o t h e r was, "Make friends by being
honest; ke e p them by being steadfast; be truthful;
be sincere; be br av e." Ma ny years afterwards
Jackson said, "Gentlemen, those words have been
the la w of m y li fe ."
T h a t th ou ght can w e l l be the l a w a n d the c r e e d
of any m a n ’s life.
I am happy in the thought that
it has been the law and the creed of our Party,
a n d m a y w e p r a y that it w i l l a l w a y s be the law
a n d the cr e e d of our P a r t y a n d of our country.
• 12(a) *
k i n d of folks, a n d since his four gr an dpa re nt ® we r e
K e n t u c k i a n s w e h a v e a sp e c i a l cl a i m to be p r o u d of
our President*
He has shown a real anility to
weigh experience, to work out level-headed solutions
for the problems of the day*
He stands for, a n d is
c a r r y i n g out, the p r i n c i p l e s a n d p o l i c i e s of his
great predecessor*
Of this there can be no doubt
when one studies his recommendations to the Congress,
a n d calls the ro ll of h i s Ca bi net officers, ev er y
one of wh om was a part of the Roosevelt team*
President Truman has vision, accepts responsibility
and, above all, he has a sterling honesty of purpose*
*
12
•
F r a n k l i n D. R o o s e v e l t was, of course, the
greatest leader our generation has seen*
H e imW%*J
mo re than a great man among contemporaries*
He
w i l l be a gr ea t m a n in pe rs pec ti ve , u n d e r the cold
calculating eye of history.
His leadership, I
believe, is best e x e m p l i f i e d by the h u s h that fell
over our country, aye, that even fell over the entire
w o r l d a t th e ti me of h i s d e a t h *
T h e t e a r s of a l l
liberty loving people were the great tribute received
% ■ the fallen warr ior for peace and freedom*
Today our Party and our country are under the
le ad ers hi p of President Truman.
This courageous
American, coming fr om our ne i g h b o r i n g state but
re pr ese nt in g the country fr om border to border, is
a genuine article through and through»
He is our
-11
-
He therefore ordered his army to return to Tennessee
at hie own personal expense*
On the w a y ba ck the column went through m a n y
swamps and much wilderness* Many were sick and all
labored under pain and fatigue*
on foot*
Jackson was everywhere
One of the m e n remarked, "He's tough*"
Another replied, "Tough as hickory." And Jackson
became "Old Hickory."
Jackson was a great leader, and there have been
ma n y mo re in our Party*
Jefferson and Cleveland
w e r e le aders in th ei r times* Wilson, too, was a
great leader, but in large part he was a leader
ahead of his time*
In fact, the Democratic Ad mi nis
trations of Jefferson, Jackson, Cleveland, Wi ls on
and Roosevelt all stand for real leadership.
*» 10 *
discipline of a Major General was a heart full
of humanity.
The episode that began his nickname of
tt0 1 d H i c k o r y * 1 p e r c h a n c e i l l u s t r a t e s b e s t J a c k s o n * s
practical humanitarianism.
He had gathered together
a ba nd of Tennessee volunteers and was impatient
to help his country in the Wa r of 1812.
orders came for him to pr oc eed southward.
Eventually
After
a di fficult trip, but before the gr ou p h a d reac hed
its original destination, orders came to dissolve
his fighting force.
Jackson followed the spirit
of these in st ruc ti on s by a c c e p t i n g the fa ct that
h e w o u l d n o t p r o c e e d to a m i l i t a r y engagement,
but he could no t treat his me n so badly as to
leave them far from home to shift for themselves.
~ 9 «*
whenever we see one.
It is so me thi ng else again
to say w h a t it takes to m a k e h i m w h a t he is.
Tonight* of course, we h a v e n o d i f f i c u l t y in
beginning a list of leaders.
This is a Jackson
D a y D i n n e r . W e s t a r t t h e l i s t w i t h ”0 1 d H i c k o r y ” .
There can be h o doubt that he was a leader.
F r o m the time he was a community reader at nine,
or at least fr om the time he was a courier in
the Revolutionary War at thirteen, through t h e
days of hi s Presidency, h e was a leader.
And
when he was President, he was the President of
all
' the p e o p l e s 1 President.
He was fearless.
He was strong in spirit even though his physical
strength was often taxed almost beyond its
endurance.
Behind the strength, efficiency and
- 8 -
systems of government the course of the nation
is set by those in power through constant repeti
tion, censorship, or force, un de r our democratic
i
system of g o ve rnm en t the w a y of our n a ti on is set
by the considered convictions of the m a j o rit y after
enlightenment and discussion*
Our leaders must
\
afford this help.
This is a great re sp ons ib il ity
and it i. highly i m p o r t a n t ^ have leaders »ho are
fully imbued with the qualities of leadership.
The Democratic Party mu st continue to give^as
it has in the past, genuine leadership for our
nation.
L e a d e r s h i p ha s an a s p e c t co mm on to m a n y o t h e r
qualities of life.
It is easy to recognize;
difficult to describe. W e k n o w a le ad er of m e n
- 7 T o u r government is y o u r servant. T o u can be sure
that y o u r F e d e r a l government, so l o n g as this
administration holds office, will do all it can
to carry out the wi ll of the ma jo rit y.
But in the
e n d it w i l l be the pe op le, a l l of the pe op le, w h o
will carry us forward.
It is true that it falls upon particular
people in the community, in the party, a n d in the
g o v e r n m e n t to i n i t i a t e p o l i c i e s fo r co n s i d e r a t i o n
an d to assume the responsibility of carrying out
the decisions that the ma jo rit y lay down as the
l a w of the land.
This means that a democratic
system of government does not obviate the need
for leaders.
L e a d e r s h i p is m o s t i m p o r t a n t i n ou r
democratic fo rm of government. Wh il e under some
- 6 -
When we accept this basic fact, that by our
inaction as we ll as our action we shall be known
a n d judged, i t b e c o m e s p e r f e c t l y c l e a r t h at i t is
m u c h wiser to set a course with thought and
ob je ct th an to be t o s s e d a b o u t w i t h o u t p l a n or
purpose.
Y o u r government is ready to he lp yo u travel
your chosen course.
But re me mbe r always it is
the p e o p l e s 1 considered judgaent that governs
this co untry. W h a t e v e r the job be fo re us, it is
the pe op le w h o m u s t do it. Y o u r government wi ll
help, hut it will only help. Y o u r government
c o u l d n o t do the w h o l e job, ev en if it w e r e p r o p e r .
Under our democratic system it is not proper.
travel the road of prosperity*
This, then, is an important time. W e hear
this so often, there is a d a n g e r that we shall
become inoculated against the thought*
That
w o u l d be a sorry turn of events because when all
is said a n d done, it re m a i n s true:
i m p o r t a n t c r o s s - r o a d of h i s t o r y .
we are at an
This very night
we m a y be enjoying a breathing spell between wars
or we m a y be laying the foundations of lasting
peace end prosperity.
The issue is before us. W e cannot a v o i d it.
Our actions will lead us one w a y or the other.
K o r can we avoid the issue by not acting.
Our
course as a nation is like our individual philosophy
o f l i f e — w e h a v e o n e w h e t h e r w e w a n t to o r n o t .
•4 -
and to recognize that we have a choice about our
future#
In truth, when we fully realize that we
(2
Am
do have a choice about our future, we^rule out "
all doctrines of pessimism, defeatism
an d fatalism# When we fully realize that the
f u t u r e is w h a t we m a k e it, we be co me optimistic,
we work wi t h purpose, and we ma ke the most of our
opportunities
I h e n we fu ll y realize that the future is
d e t e r m i n e d by w h a t w e t h i n k a n d s a y a n d do,
important and awe-inspiring alternatives confront
us# W e can take the course that leads to a th ir d
W o r l d Wa r, or on the ot he r hand, w e can a v o i d
war#
Similarly we have it in our power to take
the course that leads to depression, or we can
- 3 of the ma jo rit y that directe the nation.
this is highly right.
people.
And
The na ti on belongs to the
They share its successes and its trials.
It was the people, for example.-a11 of our people.-"
V.
that won the war.
It is our people who are
s o l v i n g the p r o b l e m s of c o n v e r t i n g over to the
ways of peace.
It is the people who will establish
in this nation a n d throughout the world, if it is
established, the lasting peace and prosperity
that we all desire.
To say *if l a s t i n g pe ac e and p r o s p e r i t y is
e s t a b l i s h e d * i s n o t to be a pe s s i m i s t .
To say
•if lasting peace and prosperity is established*
is only to acknowledge the importance of our work
-
2
—
our party* What Thomas Jefferson said of the
Democratic Party and its opposition in a le tte r
to Harry Lee in 1824 can be used without abridg
ment of how the Democratic Party and its opposition
stand today:
**Men b y t h e i r c o n s t i t u t i o n s a r e n a t u r a l l y
divided into two parties:
t r u s t th e p e o p l e , *••
Those who fear and dis
Those who identify themselves
w i t h the pe ople, h a v e c o n f i d e n c e in them, c h e r i s h
and consider them***
”T h e c h e r i i s h m e n t o f t h e p e o p l e , t h e n , w a s
our principle; the f e a r an d distrust of them, that
of the other party.*
When your government represents all of the
people it is the considered will and judgment
The Democratic Party has consistently
given the country good administrations*
basic reason is clear*
The
Beginning w i t h the days
of Jackson and Jefferson, the Democratic Party
has r e p r e s e n t e d the people, a l l of the people,
|
throughout our great land.
It does n o t m a t t e r w h e t h e r t h e y l i v e on the
Atlantic Seaboard or in the Rockies*
It does not
err)t-JLi-
m a t t e r w h e t h e r they w o r k i n the m i n e s ^ o r in the
office buildings*
It does not ma t t e r whether
t h e y f i n d th ei r fun a t the ol d s w i m m i n g h o l e or
in the playgrounds of our large cities*
The Democratic Party stands for government
of, by, a n d fo r al l of the pe op le*
That is the
f o u n d a t i o n that s u p p o r t s the e n ti re p l a t f o r m of
TREASURY DEPARTMENT
.W a s h i n g t o n
FOR RELEASE, 9î0 0 P.M.» G.S.T.
S a turday, M a r c h 25, 1946
Press S e r vice
No. V- 272
(The f o l l o w i n g address b y S e c r e t a r y V i nson
at a J a c k s o n D a y D i n n e r at Loui s v i l l e , Ky.,
is sch e d u l e d for d e l i v e r y at 9;00 P,M»,
C.S.T., M a r c h 25, 1946, and is for release
at that t i m e .)
The D e m o c r a t i c P a r t y has c o n s i s t e n t l y g i v e n the country
good a d m i n i s t r a t i o n s .
The b a s i c r e a s o n is clear.
Beginning
w i t h the days
of J a c k s o n and Jefferson, the D e m o c r a t i c Party
has r e p r e s e n t e d the people, all of the people, t h r o u g h o u t our
great land.
It doe s not m a t t e r w h e t h e r the y live on the A t l a n t i c
S e a board or in the Ro c k i e s .
It does not m a t t e r w h e t h e r they
w ork in the mines, on the farms, or in the office b u i l d i n g s .
It does n o t m a t t e r w h e t h e r they find their fun at the old
swimming hole or in the p l a y g r o u n d s of our large cities.
The D e m o c r a t i c P a rty s t a n d s .for g o v e r n m e n t of, by, and
for all of the people.
That is the f o u n d a t i o n that supports
the e n t i r e p l a t f o r m of our p a r t y , W h a t T h o m a s J e f f e r s o n said
of the D e m o c r a t i c P a rty and its o p p o s i t i o n in a l e t t e r to
Harry Lee in 1 824 can be u s e d w i t h o u t a b r i d g m e n t of h o w the
D e m o cratic P a rty and its o p p o s i t i o n stand today:
’’M e n b y t h e i r c o n s t i t u t i o n s are n a t u r a l l y d i v i d e d into
two parties:
T h o s e w h o fear and d i s t r u s t the people, .....
Those w ho i d e n t i f y t h e m selves w i t h the people, have c o n f i d e n c e
in them, c h e r i s h and con s i d e r them..,,.
’’The cher i s h m e n t of the people, then, was our p rinciple;
the fear a nd d i s t r u s t of them, that of the other p a r t y . ”
W h e n y o u r gov e r n m e n t r e p r e s e n t s al l of the p e ople it is
the c o n s i d e r e d w i l l an d judgment of the m a j o r i t y that d i r ects
the nation.
A n d this is h i g h l y right.
The n a t i o n b e l o n g s to
the people,
T hey share its s u c c e s s e s and Its trials.
It was
the people, for example • all of our people
that w o n the war.
It is our people w h o are s o l ving the p r o b l e m s of c o n v e r t i n g
over to the w ays of peace.
It is the people w h o wil l e s t a b l i s h
in this n a t i o n and t h r o u g h o u t the w o r l d , 'If it is established,
the l a s t i n g p e ace a nd p r o s p e r i t y that we all desire.
2
To say "if l a s t i n g peace
and p r o s p e r i t y is e s t a b l i s h e d "
is not to be a p e s s imist.
To say "if l a s t i n g p e ace and p r o s
perity is e s t a b l i s h e d " is o n l y .to a c k n o w l e d g e the importance
of our w o r k and to r e c o g n i z e that we hav e a choice about our
future.
In truth, w h e n w e fully r e a lize that we do have a
choice a b out our future, we c o m p l e t e l y rule out all do c t r i n e s
of pessimism, d e f e a t i s m and fatalism.
W h e n we f u lly realize
that the future is w h a t we make it, we b e c o m e optimistic,
we
wor k w i t h purpose, a n d we make the
m o s t of our o p p o r t u n i t i e s .
W h e n we f u lly r e a l i z e that the future is d e t e r m i n e d by
what we t h i n k and say and do, i m p ortant and a w e - i n s p i r i n g a l
ternatives
confront us.
W e can take the course that leads to
a third W o r l d War, or on the o t h e r hand, we can a v o i d war.
Similarly we have it in our p o w e r to take the course that leads
to depression, or we can travel the road of p r o s perity.
This, then, is an i m p o r t a n t time.
W e h e a r this so often,
there is a dang e r that we shall become i n o c u l a t e d a g a inst the
t h o u g h t . That w o u l d be a sorry t urn of events b e c a u s e w h e n
all is said and done, it re m a i n s true I W e are at an important
cross-road of history.
This very n i g h t we may be e n j o y i n g a
bre a t h i n g spell b e t w e e n war s or we m a y be l a y i n g the f o u n d a t i o n
of la s t i n g peace and p r o s p e r i t y . '
The issue is b e f o r e us.
We. c a nnot a v oid it.
Our actions
will lead us one w a y or the other.
N o r can we avoid the issue
by^not acting.
Our course as a n a t i o n is like our individual
phil o s o p h y o f life -- we have
one w h e t h e r we want to or not.
When we accept this basic fact, that b y our in a c t i o n as well
as our a c t i o n we shall be k n o w n and judged, it b e c o m e s p e r f e c t l y
clear that it is m u c h w i s e r to set a course writh thought and
object than to b e tossed a b out w i t h o u t plan or purpose.
Y o u r g o v e r n m e n t is r e ady to h e l p y o u travel y our chosen
course.
But r e m e m b e r always it is the p e o p l e s ’ c o n s i d e r e d
judgment that g o v e r n s this country.
W h a t e v e r the job b e fore
us, it is the people w h o m u s t do it.
Y o u r g o v e r n m e n t will
help, but it wil l only help*
Y o u r g o v e r n m e n t c o u l d not do
the whole job, even if it w e r e proper.
U n d e r our d e m o c r a t i c
system it is not proper,
^ o u r g o v e r n m e n t is y o u r servant.
You^ can be sure that y o u r Federal, government, so lon g as this
a d m i n i s t r a t i o n h o l d s office, will do all it can to c a r r y out
the will .of the m a j o r i t y .
But in the end it will be the
people, all of the people, w h o w ill carry us forward.
5
It is true that it falls u p o n p a r t i c u l a r people in the
community, in the party, and in the g o v e r n m e n t to initiate
policies for c o n s i d e r a t i o n and to a s s u m e the r e s p o n s i b i l i t y
of carrying out the d e c i s i o n s t h a t the m a j o r i t y lay d own as
the law of the land.
T his m e a n s that a d e m o c r a t i c s y s t e m of
government d o e s not obviate the n e e d for leaders.
Leadership
is most imp o r t a n t in our d e m o c r a t i c f o r m of gove r n m e n t . W h i l e
under some systems of g o v e r n m e n t the course of the n a t i o n is
set by t h ose in p o w e r • t h r o u g h c o n s t a n t r e p e t i t i o n , c e n s o r
ship, or force, u n d e r our d e m o c r a t i c s y s t e m of g o v e r n m e n t the
way of our n a t i o n is set by the c o n s i d e r e d c o n v i c t i o n s of the
majority a f ter e n l i g h t e n m e n t and d i s c u s s i o n ,
O ur leaders must
afford this help.
T h i s is a great r e s p o n s i b i l i t y and it is
highly important that we h a v e ' l e a ders w h o are fully imbued
wit h the q u a l i t i e s of l e a d e rship.
The D e m o c r a t i c P a r t y must
continue to give, as it has in the past, g e n uine l e a d e r s h i p
for our nation.
Leadership has an aspect common to many other qi alities
of life. It is easy to recognize; difficult to describe.
We know a l e a d e r of m e n w h e n e v e r we see one.
It is s o m e t h i n g
else a g ain to say w h a t it takes to make h i m what he is.
To
night, of course, we h a v e no d i f f i c u l t y in b e g i n n i n g a list of
leaders.
This is a J a c k s o n D a y D i n n e r .
W e start the list
w i t h ’’Old H i c k o r y ” .
There can be no d o u b t that he w as a leader.
P r o m the time
he was a c o m m u n i t y r e ader at nine, or at least from, the time he
was a courier in the R e v o l u t i o n a r y W a r at thirteen, t h r o u g h the
days of his Presidency, he was a l e a der*
A n d w h e n he was
President, he wa s the Pre s i d e n t of all --the p e o p l e s ’ President,
He was fearless.
He was strong in spirit even t h o u g h his
physical s t r e n g t h was often taxed almost b e y o n d its endurance.
Behind the strength., e f f i c i e n c y and d i s c i p l i n e of a M a j o r
General was a h e a r t full of h u m anity.
The episode that began, his n i c k n a m e of ’’Old H i c k o r y ”
perchance illu s t r a t e s b e s t J a c k s o n ’s p r a c t i c a l h u m a n i t a r i a n i s m .
He had g a t h e r e d t o g e t h e r a band of T e n n e s s e e volu n t e e r s and was
impatient to h e l p his c o u n t r y in the W a r of 1812,
Eventually
orders came for h i m to p r o c e e d southward.
After a difficult
trip, but b e f o r e the g r o u p h ad reached its original destination,
orders came t-o d i s s o l v e his f i g h t i n g force.
J a c k s o n fo l l o w e d
the spirit of these i n s t r u c t i o n s b y a c c e p t i n g the fact that he;
would not p r o c e e d to a m i l i t a r y e ngagement, but he could not
treat his m e n so b a d l y as to leave t h e m far f r o m h o m e to shift
for themselves.
He the r e f o r e o r d e r e d his a r m y to r e t u r n to
Tennessee at his own p e r s o n a l expense.
4
On t h e w a y b a c k the c o l u m n w e n t t h r o u g h m a n y swamps and
much wilderness.
M a n y w ere sick and all l a bored u n d e r . p a i n and
fatigue.
J a c k s o n was' e v e r ywhere on foot.
One of the m e n r e
marked, " H e r s tough."
A n o t h e r replied, " T o u g h as h i c k o r y . ’ And
Jackson became "Old Hi c k o r y . "
Ja c k s o n was a g r e a t loader, and there have b e e n m a n y more
in our Party.
J e f f e r s o n and C l e v e l a n d w ere leaders in their
times.
Wilson, too, w a s a great leader, but in large part he
was a leader a h e a d of his time.
In fact, the D e m o c r a t i c A d m i n
istrations of Jefferson, Jackson, Cleveland, W i l s o n and
Roosevelt all stand for real leadership.
F r a n k l i n D. R o o s e v e l t was, of course, the g r e a t e s t l e a d e r
our gen e r a t i o n has seen.
He was m o r e t han a great m a n among
contemporaries.
He will be a great m a n in p erspective, u n d e r
the cold c a l c ulating
eye of history.
His leadership, I b e
lieve, is best e x e m p l i f i e d by the h u s h that fell over our
country, aye, that e v e n fell over the entire w o r l d at the time
of his death.
T he tears of all l i b e r t y l o v i n g p e ople were the
great tribute r e c e i v e d by the fallen w a r r i o r for p e ace and
freedom.
T o d a y our P a r t y and our c o u n t r y are u n d e r the l e a d e r s h i p
of President Truman.
This cour a g e o u s American, coming f rom
our n e i g h b o r i n g state but, r e p r e s e n t i n g the c o u n t r y f r o m b o r d e r
to border, is a genuine article t h r o u g h and through.
He is
our k i n d of folks, and since his four g r a n d p a r e n t s were
Kentuckians we have a special c l a i m to be p r o u d of our P r e s i
dent.
He has s h own a real a b i l i t y to w e i g h experience, to
work out l e v e l - h e a d e d s o l utions for the probl e m s of the day.
He stands for, a n d is c a r rying out, the p r i n c i p l e s and p o l i
cies of his great p r e d e c e s s o r .
Of this there can be no doubt
when one studies h i s r e c o m m e n d a t i o n s
to the Congress, and
calls the roll of his C a binet officers, e v e r y one of w h o m was
a part of the R o o s e v e l t team.
P r e s i d e n t T r u m a n has vision,
accepts R e s p o n s i b i l i t y and, a b ove all, he has a st e r l i n g h o n
esty of purpose,.
H o n e s t y of p u r p o s e is an a t t r i b u t e o f t e n overlooked, but
it is p r o b a b l y the g r e a t e s t q u a l i t y any man, any institution, .
or any n a t i o n can have.
It is r e p o r t e d that the p a r t i n g a d
vice A n d r e w J a c k s o n r e c e i v e d f r o m his m o t h e r was "Make friends
by b e ing honest; k e e p t h e m by b e i n g steadfast; be truthful; be
sincere; be b r a ve."
M a n y y e ars a f t e r w a r d s J a c kson said,
"Gentlemen., those w o r d s h ave b e e n the law of m y life."
That thought can w e l l b e the law and the creed of any m a n ’s
life.
I am h a p p y in the thought that it has b e e n the law and
the creed of our Party, and m a y we p r a y that it will always be
the law a n d the creed of our P a r t y and of our country.
5
Our Party in r e p r e s e n t i n g the people has held h i g h the
principle of good purpose.
Thi s is important.
It is I n d i
spensable.
E v e n so, mor e is n e eded.
The real test o f the extent to w h i c h any P a r t y rep r e s e n t s
the people and a f f ords t h e m l e a d e r s h i p can be found only in the
proposals m ade a n d the a c t i o n t a ken b y that P a r t y to fulfill
the hopes and the w i s h e s of the people.
W e call that the record.
The Dem o c r a t i c P a r t y has a record.
The r e c o r d of g o v e r n m e n t b y the D e m o c r a t i c -Party undei? the
leadership of Pr e s i d e n t R o o s evelt and P r e s i d e n t T r u m a n is w r i t t e n
In deeds,
T ^ e D e m o c r a t i c P a r t y does not rel y m e r e l y on the fact
that it p r o c l a i m e d the four g r e a t h u m a n freedoms for all peop l e .
throughout the w o rld.
Rather, it relies u p o n wha t it has done
in setting a s t a n d a r d of f r e e d o m in speech, in worship, f r o m
want, and from fear to w h i c h p l a i n folks e v e r y w h e r e can repair,
We fought a w a r and are f i g h t i n g a peace to help mak e these
freedoms r ealities.
We shall g a i n t h e m for ou r s e l v e s a nd we
shall set a n example and h e l p all p e o p l e s of all n a t i o n s g ain
them.
We know at last what we should have lon g known, that any
man, w h a t e v e r his place or station m a y be, must be free to w a l k
with dignity.
A n y threat to the freedom, peace, or s e c u r i t y of
any man anywhere is a threat to the freedom, peace, and s e c u
rity of e v e r y man everywhere.
A g ain the D e m o c r a t i c P a r t y does not rely u p o n the m ere
fact that it for the first time d e c l a r e d an e c o n o m i c bil l of
rights for the A m e r i c a n people.
This d e c l a r a t i o n of an eco*v
nomic bill of rights, just like the d e c l a r a t i o n of our p o l i
tical bill of rights, was a t u r n i n g point in our hi s t o r y . >
What we a s k to be judged by, are the steps that we have taken
and are t a k i n g to make these r i g h t s r e a l i t i e s T
Any e x a m i n a t i o n of the. r e c o r d of the D e m o c r a t i c P a rty will
reveal one d o m i n a n t u n d e r l y i n g obj e c t i v e -- w h e t h e r we are l o o k
ing at action in the f o reign field or on the d o m e s t i c front —
namely, to secure for p l a i n folks here a n d ever y w h e r e freedom,
peace, and security.
Freedom, peace and security,
these are great concepts,
embodying most of what is p r e c i o u s in life.
But they are often
handled a b out l o o s e l y a n d mi sused.
T h e i r true m e a n i n g Is b r o u g h t
closer to home for all of us w h e n we think of t h e m in t e r m s " o f
what we want out of life for o u r s elves and our children.
6
First and foremost, I am sure, none of us- w a n t s to lose
any of those pe r s o n a l liberties that we w o n in 1776.
We n e v e r
want to be a f r a i d to say what we please.
We n e v e r want to be
afraid to w o r h i p God as we see fit.
We do not want to be told
where or how to wor k or live.
W e want to g o v e r n our s e l v e s so
long as w e . d o not Infringe the same right for others, and we
want to be free to choose our leaders.
This is w h a t we m e a n
when we say we w a n t freedom.
We hope and p ray that it will n e v e r a g a i n be n e c e s s a r y
for our c h i ldren or their children or their c h i l dren*s ch i l d r e n
to bleed and die in order to p r e s e r v e these l iberties.
W e want
our country to r e main strong e n o u g h to pr o t e c t itself a g a i n s t
anyone who might w i s h to a t t a c k us.
Ajt the same time and of
even more importance, we w a n t to w o r k for s u c h i n t e r n a t i o n a l
b r o t h e r h o o d that no one will w i s h to a t t a c k us or anyone else.
This Is w h a t we m e a n w h e n we say we w a n t peace.
We want to do u s e f u l w o r k and we w a n t to enjoy d o i n g it.
We want to earn e n o u g h at it to be able to take g o o d cars of ■
those who are d e a r to us.
W e w ant to be able to p r o v i d e a
decent home, good food and p l e n t y o f it, nic.e clothes and good
times for our s e l v e s and our families.
W e want to be able to
send our c h i l d r e n to college.
We wan t to enjoy good health.
We do not want to be a f r a i d of w h a t w i l l h a p p e n to our families
or
ourselves If we lose our job.
A n d we do n ot w a n t to be
afraid to g r o w old.
T h i s is w h a t we m e a n w h e n we say we want
security•
T h e s e are the things we w a n t out of life, and I a m c o n
vinced these are the thin g s p l a i n folks all over the world want
out of life.
The hopes and w i s h e s of people are not m u c h d i f
ferent no m a t t e r where t h e y live.
A n d these are the things
that our P a r t y a nd our A d m i n i s t r a t i o n have b e e n a c h i e v i n g for
our people.
, Our record of b e i n g t h e true r e p r e s e n t a t i v e s of the people
and of g i ying l e a d e r s h i p w h e r e l e a d e r s h i p is n e e d e d is good .
But we cannot live in the past.
In 1946 we must meet the prob
lems of 1946.
In 1948 we m u s t m e e t the p r o blems of 1948.
At
all times we m u s t 1
; be at w o r k to thwart, to the extent p o s sible
the potential p r o b l e m s o f the future.
A pol i t i c a l p a r t y mus t
have p r i n c i p l e s a n d it must have p r a c t i c a l p r o posals to meet
specific p r o b lems.
We shall continue to m eet those tests.
We hav e t o d a y a p o s i t i v e p r o g r a m to carry f o r w a r d our
creed and h i g h p r i n c i p l e s .
T o m o r r o w we shall have a b e t t e r
p r ogram to m e e t the p r o blems of the future, m a n y y et unknown,
and we shall h e l p the people r e a c h their h i g h e r destiny.
-
7
-
If we are t o s u c e e e d in f u l f i l l i n g the h o pes and w i s h e s of
our p e ople for freedom,- peace and security, we must have p o s i
tive programs in b o t h the do m e s t i c field and: the f o r e i g n field.
Success in either field, d o m e s t i c or foreign, will hel p us a t
tain success In t h e other; failure In e i t h e r f i e l d - m a y well
mean failure In the other.
This is true w h e t h e r the issues are
economic, social or p o l i t i c a l in character.
'Economic secur i t y
in A m e ric a cont r i b u t e s to e c o nomic se c u r i t y t h r o u g h o u t the
world and to a l a s t i n g peace.-. In turn, economic s e c u r i t y in
any other c o u n t r y c o n t r i b u t e s to the e c o n o m i c s e c urity of
America and the world*.
The D e m o c r a t i c A d m i n i s t r a t i o n has p o s i t i v e economic, social
and political programs in b o t h the d o m e s t i c and f o r e i g n fields.
Tonight I will m o n t i o n a few o f the e c o n o m i c p r o b l e m s w h i c h we
are m e e t i n g an d s o l v i n g b o t h at home and a m o n g the na t i o n s of
the world*
Our P a rty and our A d m i n i s t r a t i o n are n t i l l a d v o c a t i n g and
doing all In their p o wer to e f f e c t u a t e the p r o g r a m of p r e v e n t i n g
disastrous inflation.
P r o b a b l y more than ever b e f o r e the s p e c
ial pleaders, are at w o r k in this field.
The d a n g e r of I n f l a t i o n
is still great.
While the voices of those w h o w o u l d sell the
common good for t h eir own b e n e f i t is l o u d e r than ever before,
the p r o g r a m continues to have the support o f the maj o r i t y , a sup
port w h i c h is taken a f t e r exe r c i s i n g a c o n s i d e r e d judgment on
past experience.
It w o u l d be p a t h e t i c if a f t e r - h o l d i n g at b a y
this tough e n e m y all t h r o u g h the war, we should lay aside our
weapons •
We believe in, and have, a-program for a sound high-level
economy. We stand for prodigious production* W e believe that
every man who wants to work should have a fair opportunity to
secure a job*. Vie. believe in a higher and higher national in
come.. These simple objectives require much work and attention.
Vigilance is as necessary to secure and maintain a sound expand
ing economy as it is to repulse an armed enemy from abroad*.
A m e r i c a n s have a good s t a ndard of living, but Americans,
being Americans, always hope for and seek a b e t t e r s t a n d a r d of
living.
One of the m e a s u r e s that does s o m e t h i n g p o s i t i v e about
this problem,, p a r t i c u l a r l y a m ong o ur less for t u n a t e people,
economically speaking, is the m i n i m u m wage bill.
The D e m o c r a t i c
Party and Its a d m i n i s t r a t i o n stand for a s u b s t a n t i a l Increase
m the m i n i m u m w a g e p a i d to m i l l i o n s of w o r k e r s .
8
T h e D e m o c r a t i c P a r t y stands for a c o n s t r u c t i v e p r o g r a m
that, will assist our veterans in t a k i n g up the pursu i t s of
peacetime living.
We. have the or i g i n a l G. I, Bill of Rights.
We. have the Act a p p r o v e d h y P r e s i d e n t T r u m a n in D e c e m b e r e x
tending the p r o v i s i o n s of that l e g i s l a t i o n .
Above all we b e
lieve that the soundest and m o s t e n d u r i n g f o r m of a s s i s t a n c e
to the veterans is our p r o g r a m of h i g h - l e v e l production, e m
ployment and nat i o n a l income,
I'he veteran is a part of the
community.
The m ore we do to put our c o m m u n i t i e s on a p r o s
perous basis, the mor e we do to hel p the veteran.
Our do m e s t i c economic p r o g r a m goes han d in han d w i t h our
foreign policy, the c o r n e r s t o n e of w h i c h is to a c h i e v e g e n uine
international c o o p e r a t i o n in all fields —
economic, social, political.
We must w o r k out full u n d e r s t a n d i n g a m o n g n a t i o n s
as well as a g r e e m e n t s on sp e c i f i c p r o blems.
To secure i n t e r
national c o o p e r a t i o n m e a n s that we m u s t m a k e the d i s c u s s i o n and
conference pr o c e s s „work.
T h a t is the r e a s o n a b l e way;.
T h a t is
the peaceful way*
In truth, that is the only way.
We mus t strive
for i n t e r n a t i o n a l c o o p e r a t i o n on economic
problems w i t h as m u c h h e art and v i gor as we strive for i n t e r
national c o o p e r a t i o n o n p o l itical problems.
The D e m o c r a t i c
Party has for years t a k e n the l e a d e r s h i p in w o r k i n g toward s u c h
cooperation.
Our efforts t o day are d i r e c t e d towards r e s t o r i n g
world trade, f r e eing it from- the r e s t r i c t i o n s that isolate c o u n
tries and divide n a t i o n s into c o n f l i c t i n g e c o n o m i c blocs.
If
we are to h a v e peace and p r o s p e r i t y w e m ust eli m i n a t e economic
w a r fare among n a t i o n s just as e f f e c t i v e l y as we e l i m i n a t e p o l i
tical warfare.
If we are to s u c c e e d in r e s t o r i n g w o r l d trade on a sound
and h e a l t h y basis, we must secure prom p t ec o n o m i c r e c o n s t r u c t i o n
of the w a r - d e v a s t a t e d c o u n t r i e s and we m u s t e l i m i n a t e the cur-,
rency r e s t r i c t i o n s and u n f a i r trade p r a c t i c e s that b l o c k w o r l d
trade.
1hese things can be a c c o m p l i s h e d onl y b y genuine, w h o l e
hearted c o o p e r a t i o n a m o n g nations.
To b r i n g t h e m about we have
proposed, therefore, that the U n i t e d N a t i o n s p n o v i d e the m e a n s
for c o n t i n u i n g c o o p e r â t i o n t h r o u g h the I n t e r n a t i o n a l B a n k for
R e c o n s t r u c t i o n a n d Deve l o p m e n t , t h r o u g h the I n t e r n a t i o n a l M o n e
tary lund,- and t h r o u g h an I n t e r n a t i o n a l T r a d e O r g a n i z a t i o n .
I can r e p o r t to y o u now, t hat at the I n a u g u r a l M e e t i n g of
the B o a r d of G o v e r n o r s o f the W o r l d Fund and Bank, just c o n
cluded. at Savannah, Georgia, we s t a r t e d these i n s t i t u t i o n s w o r k
ing on a 'concrete p r o g r a m of i n t e r n a t i o n a l c o o p e r a t i o n to restore
world trade.
Forty n a t i o n s put their h e ads t o g e t h e r at S a v a n n a h
and ^agreed u p o n all steps n e c e s s a r y for these i n s t i t u t i o n s to
begin operations. The c o n f e r e n c e was a complete success in all
respects.
Not only was' there a m e e t i n g of m i n d s on how we
should proceed.* b u t of more imp o r t a n c e there was a m e e t i n g of
hearts that we should m a r c h forward together.
The fact that
the seat of these two great i n s t i tutions was e s t a b l i s h e d in the
capital of our c o u n t r y is one f u r t h e r e x a mple of the e x t e n t . t o
which the w o r l d Is l o o k i n g to us for l e a d e r s h i p in these,
troubled times. ^ W e can a n d we mus t j u s tify the f a i t h w h i c h has
been reposed in us,At the time the p a r t i c i p a t i o n of our c o u n t r y in the W o r l d
Bank and Fund was approved, the" C o n g r e s s e s t a b l i s h e d the N a t i o n a l
Advisory C o u ncil on I n t e r n a t i o n a l M o n e t a r y and Fin a n c i a l P r o blems
This Council Is charged w i t h c o o r d i n a t i n g the a c t i v i t i e s of all
agencies of our g o v e r n m e n t on f o r e i g n loans a nd m o n e t a r y t r a n s
actions • As C h a i r m a n of this Council, I can assure y o u that it
is the a i m of the Council to secure the a d o p t i o n of suc h m e a s
ures in the i n t e r n a t i o n a l financial field as w ill c o n t r i b u t e to
world peace and
prosperity, at the same-time s e c u r i n g .the most
efficient use ,of the funds of the A m e r i c a n t a x paper.
W e have
no i n t e n t i o n that the un i t e d S t ates should p l a y the role of
Santa Claus in our i n t e r n a t i o n a l f i n ancial relations, and we
must c o n s t a n t l y k e e p .in m i n d the fact that our own p r o g r a m of
m a i n taining h i g h levels of prod u c t i o n , e m p l o y m e n t and n a t i o n a l
Income is d e p e n d e n t on our success In e x p a n d i n g w o r l d trade, -.
Our I n t e r n a t i o n a l f i n ancial and e c o n o m i c p r o g r a m Is a b i g and
vital part of wha t we are d o i n g to give the A m e r i c a n p e o p l e
peace and p r o s p e r i t y ,
A f u r t h e r part of the I n t e r n a t i o n a l e c o nomic p r o g r a m for
today w h i c h y o u r a d m i n i s t r a t i o n supports is the p r o p o s e d line
of credit to Great Britain.
This is a p r o p o s a l n o w b e f o r e the
Congress for approval.
This program, if approved, will m e a n
much to A m e r i c a n business, a g r i c ulture, and labor.
We shall r e c eive r i c h d i v i d e n d s f r o m this good, business,
investment,. One o f the p u r poses o f the p r o p o s e d line of credit,
as stated in the A g r e ement, fris to f a c i l i t a t e p u r c h a s e s by the.
United K i n g d o m of goods and services in the U n i t e d S t a t e s . ^
That means more b u s i n e s s and m o r e trade in the n e a r future.
In
addition, the A g r e e m e n t provides, as we desired, the prom p t r e
moval of c u r r e n c y r e s t r i c t i o n s that impede our trade,. Moreover,.
Britain p r o mises to avoid trade c o n trols that d i s c r i m i n a t e
against A m e r i c a n products, and B r i t a i n agrees w i t h us on the
principles of fair trade p r a c t i c e s w h i c h are- to be e f f e c t u a t e d
by a p r o p o s e d I n t e r n a t i o n a l T r ade Organization,- T h e s e all m e a n
more bu s i n e s s a n d more trade on the lon g haul*. --
10
That in general terms is what we g a i n from p e r m i t t i n g
Britain the use of the m o n e y in the p r o p o s e d line of credit.
It is to b e e m p h a s i z e d that B r i t a i n re c e i v e s the use of the
money, not the m o n e y itself.
The A g r e e m e n t pr o v i d e s that all
of the p r i n c i p a l is to b e repaid*
T h e A g r e e m e n t f u r ther p r o
vides that B r i t a i n is to pay interest on the m o n e y except
under well d e f i n e d t e m p o r a r y d e p r e s s e d conditions.
T h e p r o p o s e d Agreement, then, does not f o llow the f o r m of
an o r d inary c ommercial l o a n such as a b a n k w o u l d make.
W e gain
much m ore t h a n that.
The A g r e e m e n t is good b u s i n e s s for all
concerned and it ties t o g e t h e r m a n y p r o b l e m s of ec o n o m i c r e l a
tionships a n d of worJLd trade, as w e l l as b e i n g an i n s t r u m e n t to
provide the u se of capital.
For B r i t a i n it m e a n s the chance to
feed h er people and her factories u n t i l she can r e c o n v e r t her
industries and take her place in a w o r l d of e x p a n d i n g trade.
For the U n i t e d States it means the o p e n i n g of the m a r k e t s of
our best customers, England, the B r i t i s h Empire, and the s t e r
ling area, to the p r o d u c t s of our factories and farms, m a k i n g
a larger A m e r i c a n share in a l a r g e r w o r l d tradp.
For all
countries It m e a n s a chance to trade more, to have g r e a t e r e m
ployment a nd h i g h e r standards of living.
O ur T a r t y and our A d m i n i s t r a t i o n have ‘m o m e n t u m u p o n the
road of peace and pros p e r i t y .
We are t a k i n g the steps n e c e s
sary to b u i l d a sound, and exp a n s i v e e c o n o m y w i t h full produces
tion, employment, and a h i g h n a t i o n a l income*
We are taking
our place a m o n g the U n i t e d N a t i o n s to solve the p r o b l e m s
between countries b y the p r o c e s s of c o n f e r e n c e and d iscussion.
There w ill be d i f f i c u l t days.
But w e have had d i f f i c u l t
days before.
This time we are b e t t e r pre p a r e d .
W e hav e had
more e x p e rience a nd we n ow have m o r e u n i t y of purpose.
The
hearts of h o n e s t folk t h r o u g h o u t the w o r l d are b e a t i B g to g e t h e r
as they n e v e r have be f o r e .
folks all over the w o r l d are s t a r t
ing to m a r c h t o g ether to t h eir h i g h e r destiny, r e a l i z i n g the
truth of our own State motto:
" U nited we stand; d i v i d e d we
fall.«
$0o
TKEASOKT DEPAKTMEHT
Washington
fOS RELEASE, MORNING NEWSPAPERS,
Servie®
Tuesday, March 26, 19fa6.
The Secretary of the Treasury announced last evening that the tenders for
$1,300,000,000, or thereabout®, of 91-day Treasury bills to be dated March 28 and to mature
June 27, 19i#6, which were offered on March 22, 191*6, were opened at the Federal Reserve
Banks on March 25«
The details of this issue are as followst
Total applied for — $1,981*,509,000
ioti S p W
- 1,313,1*01,000
(includes »1*.768.000 sntered on « fixed-pric.
y
basis at 99.905 and accepted in full)
Average price
- 99*90$/ Equivalent rate of discount approx. 0.375* per annum
Range of accepted competitive bidst
• 99.908 Equivalent rate of discount approx. 0.361$ per annum
High
Low
- 99*905
*
?
*
*
s
0.376*
•
*
(61 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
|
9,01*7,000
1,51*1,720,000
16,220,000
25,31*0,000
9,1*90,000
7,163,000
287,683,000
5,027,000
3,695,000
12,062,000
6,100,000
60,962,000
#
6,980,000
1,002,1*12,000
12,320,000
20,231#000
8,301,000
7,163,000
186,283,000
1*,052,000
3,695,000
10,892,000
5 ,5 i5 ,o o o
1*5,557,000
#1,981*.509,000
#1,313,1*01,000
TOTAL
TREASURY DEPARMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, M a r c h 26, 1946 ________
Press Service
V-273
T he S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that
the tenders for ¿ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y
Tr e a s u r y bills to be dated M a r c h 28 and to m a t u r e June 27, 194b,
w h i c h were of f e r e d on M a r c h 22, 1946, w e r e o p e n e d at the Federal
Reserve Banks on M a r c h 25#
The d e t a i l s of this
issue are
as follows:
Total a p p l i e d for - $ 1 , 9 8 4 , 5 0 9 , 0 0 0
1,313,401,000
Total a c c e p t e d
(includes $ 4 4 , 7 6 8 , 0 0 0
e n t e r e d on a f i x e d - p r i c e
b a s i s at 9 9 , 9 0 5 and a c
cepted in full)
9 9 , 9 0 5 / E q u i v a l e n t rate of d i s c o u n t
A v e r a g e price
approx. 0 . 3 7 5 % per a n n u m
Range of a c c e p t e d c o m p e t i t i v e bids:
High
Low
(61 percent
accepted)
- 99.908 E q u i v a l e n t rate of d i s c o u n t
approx, 0 . 3 6 4 % p er a n n u m
- 9 9 .905 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 % per a n n u m
of the amount b i d for at the low price was
$
B o ston
N ew Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas C i t y
Dal la s
San Fra n c i s c o
9,047,000
1,541,720,000
16,220,000
25.340.000
9.490.000
7.163.000
287,683,000
5.027.000
3.695.000
12.062.000
6 100.000
60,962,000
.
TOTAL
Total
Accepted
Total
Applied
For
Federal R e s erve
District
$1,984,509,000
oOo
$
6,980,000
1,002,412,000
12.320.000
20.231.000
8.301.000
7.163.000
186,283,000
4.052.000
3.695.000
10.892.000
5.515.000
45.557.000
$1,313,401,000
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE;
Prsss Service *■ /
ISMSCi Ma«h 26, 19&6.
£ _
£
*
Secretary of the Treasury Vinson today announced the subscription \
figures and the basis of allotment for the offering of 7/8 percent Treasury
Certificates of Indebtedness of Series D-19l*7 in exchange for Certificates
of Indebtedness of Series 0-191*6, maturing April 1, 191*6.
Reports received from the Federal Reserve Banks shoe that subscriptions
aggregate §U, 71*1,000,000.
Subscriptions in amounts up to and including
#25,000, totaling about §145,000,000, were allotted in full«
Subscriptions
in amounts over §25,000 were allotte d p e r c e n t on a straight percentage
basis, but not less than §25,000 to any one subscriber, with adjustments,
where necessary, to the next highest §1,000.
Details as to subscriptions and allotments will be announced when final
reports are received from the Federal Reserve Banks.
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E REDEASE,
Tuesday, M a r c h 26, 1946
Press S e r v i c e
No. V - 274
S e c r e t a r y of the T r e a s u r y V i n s o n t o day a n n o u n c e d the s u b
scription figures and the b a s i s of a l l o t m e n t
of 7/8 p e r c e n t T r e a s u r y C e r t i f i c a t e s
D-1947
C-1946,
in e x c hange
for C e r t i f i c a t e s
m a t u r i n g A p ril 1,
Reports
re c e i v e d
of I n d e b t e d n e s s of Series
of I n d e b t e d n e s s
were a l l o t t e d
f r o m the
Federal R e s e r v e Banks
including 125,000,
in full.
of Series
1946.
s u b s c riptions a g g r e g a t e 1 4 , 7 4 1 , 0 0 0 , 0 0 0 .
amounts up to and
for the o f f e r i n g
Subscriptions
show that
Subscriptions
in
t o t a l i n g about 145, 0 0 0 , 0 0 0 ,
in a m o unts
over 1 2 5 , 0 0 0
were a l l o t t e d 59 pe r c e n t on a straight p e r c e n t a g e basis,
not less t h a n 1 2 5 , 0 0 0 to a n y one
where necessary,
Details
subscriber,
but
w i t h adjustments,
to the next h i g h e s t ! l , 000.
as to s u b s c r i p t i o n s
n o u nced w h e n final reports
and a l l o t m e n t s wil l be a n
are r e c e i v e d
Banks•
oOo
f r o m the Federal R e s e r v e
m
14
«*
V
the 52 months
W o r l d W a r I. L e t u s r e c a l l t h a t
a f t e r N o v e m b e r 1$, 1 9 1 8 , p r i c e s c o n t i n u e d to i n c r e a s e
rapidly until June 1920 when they reached a point
do ub le w h a t they w e r e at the s t a r t of the war.
Then
came the crash. This time prices have been relatively
s t a b l e s i n c e t h e e n d o f t h e war. W e a r e i n a g o o d
po si tio n to a v o i d an insecure boom fo ll owe d by a
terrible collapse. Let us not undo what we have done.
I f u ll y endorse the ex te nsi on of the Stab ili za ti on Act.
- 13 Price control did not stifle pr oduction during the
w a r a n d in spite of t h e ob s t a c l e s w e h a v e had, the
ex p a n s i o n of p e a c e t i m e p r o d u c t i o n in the p e r i o d since
VJ-Day
as a whole has been
4 * our history#
rapiJLin any^period
rf
The present physical level of production
in the w h o l e e c o n o m y is n o w above th e a v e r a g e of the
y e a r 1941, d e s p i t e the t r em end ou s p r o b l e m s w h i c h have
b e e n p r e s e n t e d to i n d u s t r y i n t h e p a s t y e a r b y t h e
c h a n g e - o v e r f r o m a w a r t i m e to a p e a c e t i m e d e m a n d #
When the pipelines are full, most types of consumers1
goods will be on the market in volume#
But the
extension of the Stabilization Act is necessary to
hold the line until supply 1m once more nrptailmiitn
demand#
W h e n w e a r e s e r v e d u p thm c t e m p t i n g d e p a r t u r e s
f r o m our pr e s e n t program, let us re me mbe r that the
r e c o r d u n d e r pr ic e c o n t r o l is r e m a r k a b l y good#
us re ca ll again a n d again that the best in de x of
retail prices we have, showed an in cr eas e in the
72 m o n t h s of this w a r of o n e - h a l f w h a t it di d in
Let
•
12
-
P r o d u c t i o n to m e e t the d e m a n d is the final answer*
S o m e q u a r t e r s , ta ki ng a d v a n t a g e of the a p p e a l of t h i s
end, h a v e s u g g e s t e d t h a t the r e m o v a l o f p r i c e co nt rol s
is the be st w a y to s t i m ula te p r o d u c t i o n a n d is therefore
the best w a y to beat the i n f l a t i o n da ng er* T h e s e people,
c o n s c i o u s l y or un co nsc io us ly, o v e r l o o k the n e e d s of the
interim period*
A l t h o u g h w e a r e w e l l o n o u r w a y of
peacetime production, we cannot produce enough tomorrow
or the n e x t day to m e e t the d e m a n d that ha s a c c u m u l a t e d
over months*
During that period, the removal of price
control w o u l d be stimulating — stimulating
est£&RM&l, di zz y sort of way* In m y judgment, there
w o u l d be so m u c h effort spent in beating the market, in
buying an d selling m a te ria ls a n d inventories, in conce n t r & t i n g on the sp ec ulative gain, that we w o u l d find
I therefore take issue wi th those who say that
re mo val of p r i c e co ntrol w i l l stimulate a n d incr eas e
p r o d u c t i o n * T h i s s o u n d s l i k e t h e 1 9 4 6 v e r s i o n o f the
old argument that price control has stifled production*
•
11
-
W e hare built up a tremendous demand for most
consumer goods.
savings.
T h is d e m a n d is b a c k e d u p by l a r g e
The amount of currency, bank deposits, and
United States securities owned by all non-bank investors
h a s i n c r e a s e d f r o m a b o u t A$02 b i l l r o n a t t h e e n d o f
0 * 4 »**<£>
„ ¿.MMm 3 j
1939 to about
today. Our wants, fortified ^ 7
wMt t b e s e l i q u i d r e s e r v e s , c a n g i v e u s t h e i m p e t u s
to be gi n a v o l u m e of p e a c e t i m e p r o d u c t i o n f a r g r e a t e r
than we have ever seen. Moreover these savings can
be the fl yw hee l for our economy for a lo n g time to
come.
want.
Th is can g i v e us the f u t u r e th at a l l A m e r i c a n s
It can be the pleasant af t e r m a t h of war.
T h i s re su lt, h o w e v e r , is n o t
¿few
»ee esearily
so. le
co u l d q u i c k l y spend ou rs elv es in the d i s s i p a t i o n of
s p i r a l l i n g p r i c e s a n d s p e c u l a t i v e m a r k e t s . W e h a v e th e
h e a r t a n d the m i n d to a v o i d this ca ta str op he . Let us
h a v e the f o r t i t u d e a n d t h e w i t to c a r r y out the d e c i s i o i H * ^
w e k n o w is r i g h t .
Our children would look back and
c o n s i d e r it t h e m o s t p a t h e t i c t h i n g ou r g e n e r a t i o n did,
if, a f t e r t h w a r t i n g the i n f l a t i o n og re a l l t h r o u g h the
war, w e gave u p just before the job was finished.]
LO
In spite of thi
situation, taxes
m u s t r e m a i n high a n d t h e b u r d e n o f c a r r y i n g t h e p u b l i c
of su bs tan ti al
The
d e b t i s stii:
r e ve nue s a n d the c a r r y i n g of the pu b l i c debt can b o t h
b e d o n e w i t h o u t u n d u e b u r d e n to o u r e c o n o m y * C a n b e
do ne , t h a t is, i f o u r e c o n o m y i s m a i n t a i n e d a t a h i g h
level*
The o n l y d e s i r a b l e , sound, l o n g - t e r m s o l u t i o n to
the p r o b l e m s o f r e v e n u e a n d d e b t m a n a g e m e n t is h i g h level production, employment, and national income*
With our economy in high gear the burden will be^light&u'#
T h e w a r h a s d e m o n s t r a t e d t h a t we h a v e a $ 2 0 0 , 0 0 0 , 0 0 0 , 0 0 0
nation,
4
seat» p pine »»«»frir1
A s S e c r e t a r y of the T r e a s u r y I w a n t a s o u n d a n d
e x p a n s i v e econ omy * A n d on that p o in t the p r e v e n t i o n
of inflation has its all im po rta nt impact. W e cannot
have that stable, high-level economy w i t h full production,
full employment, an d h i g h n a t i o n a l income, no r can we
meet successfully our revenue and debt management
problems, if we ha ve the dislocation of all values and
r e l a t i o n s h i p s t h r o u g h o u t o u r e c o n o m y that comes w i t h a
bad case of inflation*
- 9 d u r i n g t h e c o r r e s p o n d i n g p e r i o d o f th e p r e v i o u s
fiscal year*
Our revenues have been large becau“ *
our national income has stayed at a high level*
e x p e n d i t u r e s a r e sm a l l e r than the estimates m a d e at
the time of the Budget M e ss age * In fact, our expendijf f*6& / i¿tP
tures in F e b r u a r y w e r e $9*5 billion ag ai nst the hi gh
o f $ 9 *7 frr ii:i*en l a s t J u n e .
This decline of n e a r l y
two-thirds in eight m o n t h s is because we have all
m a d e a w h o l e h e a r t e d e f f o r t to l e a v e the w a r t i m e b a s i s
a n d ad o p t the p e a c e t i m e course.
The two together mean
that we are w e l l on the w a y to a balanced budget.
That
h a s a n o v e l sound, but it is a h a p p y s i t u a t i o n w h i c h I
a m g l a d t o r e p o r t t o t h i s C o m m i t t e e , to t h e C o n g r e s s ,
a n d to a l l the p e o p l e of the c o u n t r y w h o h a v e the same
problem in their daily lives*]
e:
n e e rts n e t
l a » g e.
, our current
o f the T r e a s u r y
Chiefly by this means we have
been able to m a k e two substantial reductions in the
p u b l i c debt. That, too, has a n o v e l sound. In fact,
they are the first substantial reductions in sixteen
years.
T h e r e ~i erng'g r t i ’liil y ^r '-f
. e a 4 & e f r g t i m m,±irfm^±mg
• Today we can be m o r e
optimistic about the future than ever before. It
| ,
f'V ,
’^r ”
i
• : J
I /.
would be pathetic if we muffed this grand opportunity.
W e m u s t m a i n t a i n our controls over inflation a little
longer.
In v i e w of the w o r k I h a v e h a d in th e f i e l d of
stabilization, I h a v e of course a st ro ng pe rs ona l
i n t e r e s t in the subject.
Of m u c h m o r e importance,
h o w e v e r , is the f a ct that a s S e c r e t a r y of the T r e a s u r y
I h a v e a v i t a l o f f i c i a l i n t e r e s t in the p r e v e n t i o n of
inflation.
T w o of the m o s t i m p o r t a n t s u b j e c t s in the T r e a s u r y
D e p a r t m e n t a r e t a x e s a n d th e m a n a g e m e n t o f t h e p u b l i c
debt. Inflation, or its prevention, has a direct
effect on both problems*
At present we are travelling a sound and pleasant
road. Our receipts are larger than the estimates made
a t t h e t i m e o f th e P r e s i d e n t f s B u d g e t M e s s a g e . I n
f a c t , o u r n e t r e c e i p t s f r o m J u l y 1, 1 9 4 5 , t h r o u g h
M a r c h 22, 1946, h a v e been o n l y 2 p e r c e n t l e s s than
. 7 i t If w e try; a n d one of the m o s t i m p o r t a n t things
to do is to e x t e n d t h e S t a b i l i z a t i o n A c t w i t h as
/
— - D u r i n g tie fight a g a i n s t t h e a r m e d e n e m y a b r o a d
and the insidious enemy of inflation at home, we ha d
our headaches and our heartaches« \ There werejshortages
of raw m a te ria ls *
T h e r e w e r e g r e a t t r a n s f e r s of
m a n p o w e r f r o m p e a c e t i m e p u r s u i t s to w a r p r o d u c t i o n ,
a n d f r o m the h o m e s to the f a c t o r i e s * Th er e w e r e
k i n k d in the pr o d u c t i o n li ne a n d in the t r a n s p o r t a t i o n
system.
In l a r g e p a r t w e h a d to p r e p a r e f o r w a r a f t e r
the battle had started. A n d we were fighting enemies
w h o h a d p r e p a r e d f o r years* Y e t w e o v e r whe lm ed the
e n e m y w i t h o u r a r m e d m i g h t , h a d m o r e t h a n e n o u g h to
l i v e on a t home, a n d k e p t ou r e c o n o m y on even keel*
A f t e r the s h o o t i n g s t o p p e d w e h a d to change ov er
ag ai n, t h i s t i m e f r o m w a r to the p u r s u i t s o f p e a c e *
A g a i n w e h a v e h a d o u r p r o b l e m s * % the- l a r g e , h o w e v e r ,
the job is done, a n d we can say it was well done*
- 8 .
the different types of controls.
d e a l W f r w e e» -
We learned a great
. I n W o r l d liar I f v e r y l i t t l e
emphasis was pl ac ed on direct controls. There was
no rationing at the retail level; and no public
anno unc em en t of f i x e d prices, even of war goods, until
September 1917.
Furthermore, such price control and
allocation as existed were removed almost immediately
a f t e r the A r m i s t i c e .
The inflationary pressures generated by a war
c o n t i n u e f o r some t i me a f t e r it h a s b e e n c o n c l u d e d on
the
retail prices r ose Qfr-pwceiTtrtn
62 percent in
the 52 m o n t h s between the outbreak of the w a r in
E u r o p e i n 1 9 1 4 anii - 4 ^ 4 & t i n a _X)a y.^\ O n t h e o t h e r h a n d ,
*«*.«*4. p r i c e s h a v e r i s e n o n l y 0 . 5 p e r c e n t b e t w e e n
> s ; / f y fa
V J * D a y a n d f-b p - f r *g an f ti m e Û?
»
T h e p r o b l e m b e f o r e u s is to p r e v e n t a r e p e t i t i o n
of t h e e x p e r i e n c e a f t e r W o r l d W a r I. W e can p r e v e n t
pi-
m § m
large part, because we started sooner.
We took our
f i r s t s t e p t o w a r d t h e w a r t i m e l e v e l of t a x a t i o n w i t h
t h e e n a c t m e n t of the fi r s t R e v e n u e A c t of 1940 in
J u n e 1 9 4 0 ; w e f o r m e d t h e A d v i s o r y C o m m i s s i o n to the
Co un cil of R a t i o n a l De f e n s e in M a y 1940, a n d so
c o m m e n c e d the o r g a n i s a t i o n of the a l l o c a t i o n of g o o d s
on t h e p h y s i c a l l e v e l ; w e f o r m e d the D e f e n s e S a v i n g s
St a f f in M a r c h 1941, a n d so co m m e n c e d the o r g a n i z a t i o n
o f w a r s a v i n g s . I n W o r l d W a r I, a l l o f t h e c o r r e s p o n d i n g
steps w e r e taken af te r we h a d entered the war.
A s a c o n s e q u e n c e , i n part, of s t a r t i n g earlier,
we have a c h i e v e d b e t t e r results on the f i s c a l f r o n t in
World W a r II.
F r o m J u l y 1, 1 9 4 0 , a b o u t t h e b e g i n n i n g
o f t h e p r o g r a m o f d e f e n s e f i n a n c e , to t h e p r e s e n t t i m e ,
4 4 p e r c e n t o f t h e e x p e n d i t u r e s of t h e F e d e r a l G o v e r n m e n t
have been covered by taxation and other nonborrowing
receipts.
T h i s compares w i t h 3 3 p e r c e n t f o r t h e W o r l d
W a r I p e r i o d be gi nni ng w i t h the o u t b r e a k of the war in
E u r o p e a n d c o n t i n u i n g to June 30, 1919.
«M&tlhe most important difference between World
W a r I a n d ?#orld W a r II i s the d i f f e r e n c e in e m p h a s i s on
m»
purposes«
^
mt
This compares w i t h a m a x i m u m of on ly
about one-fourth of the national product going for
war purposes in W o r l d W a r I — and then for a m u c h
shorter period. Yet, retail prices paid by consumers,
as m e a s u r e d in ea ch c a s e by the i n d e x n u m b e r of the
B u r e a u of L a b o r S t a t i s t i c s , a d v a n c e d o n l y 3 1 p e r c e n t
b e t w e e n t h e o u t b r e a k o f the w a r i n E u r o p e i n 1 9 3 9 a n d
V J - D a y , a s c o m p a r e d w i t h a r i s e of 6 2 p e r c e n t b e t w e e n
the o u t b r e a k of the w a r in E u ro pe in 1914 a n d A r m i s t i c e
Day«
W h a t w e r e the m e a s u r e s by w h i c h prices we re thus
held down during World W a r II?
They m a y be grouped
i n t o t h r e e m a j o r c l a s s e s : ■m t a x a t i o n ,
stimulation of savings, and
the
direct controls over
p r i c e s a n d the p h y s i c a l a l l o c a t i o n of goods«
A l l three of these m e t h o d s w e r e a p p l i e d al so in
World W a r I ; yet prices rose m u c h more, although in
r e s p o n s e to w e a k e r p r e s s u r e s * Why, then, w e r e we so
m u c h m o r e s u c c e s s f u l i n W o r l d War I I ? 1
ii'g'tHgjii>w a r i s t h a t w e a p p l i e d a l l o f t h e
m e t h o d s ^ i#»p»»"'" ¥ ^ge i» o u o l y « T h i s w a s m a d e p o s s i b l e , i n
- 3 of m a k i n g t h e g o o d s a n d r e n d e r i n g the services of
war. The p r o d u c t of the p e r s o n s in the a r m e d f o r c e s
a n d in t h e wa r i n d u s t r i e s is n o t of a type w h i c h can
be s o l d to the c i v i l i a n p o p u l a t i o n ; bu t the p e r s o n s
pr od uci ng it continue to receive incomes, a n d these
i n c o m e s w i l l be spent, in l a r g e part, on the pr o d u c t s
of the p e r s o n s st il l in the c i v i l i a n i n d u s t r i e s .
Du r i n g war, all of the p o p u l a t i o n is l i v i n g on the
product of only pa r t of it.
A n u p w a r d p r e s s u r e on p r i c e s is in ev ita bl e, th er e
fore, a n d ca n o n l y be c o u n t e r a c t e d by v i g o r o u s m e a s u r e s
on the p a r t of t h e G o v e r n m e n t .
In t h e c a s e of the w a r
which we have just finished, these upward pressures
were the most powerful which have yet been generated
in the Am er ica n economy; but the A m er ica n people, acting
through their Government, c o mb att ed them so vigorously
t h a t t h e r i s e i n p r i c e s d u r i n g t h e ?*ar w h i c h h a s j u s t
ended was less than in any previous major war in which
the United States has been engaged.
F o r a c o n s i d e r a b l e p e r i o d d u r i n g W o r l d W a r II,
about half of the national product was going for war
«* £ «*
interest in economic stabilization while Will iam H*
Davis was the f i e l d g e n e r a l in the Office of Economic
S t a b i l i z a t i o n * it al l times bo th of u s h a d the c o u r
ageous and able help of Chester Bowles, the Administrator
of the Office of Price Adminis tr at ion .
I s h o u l d l i k e to
r e p o r t a l s o t h a t P a u l P o r t e r w a s o n e qi m y ^ f t s s i s t a n t s
w h i l e I w a s i n zr a ? r S *
A
He did a fine job fo r us there,
a n d I h a v e f u l l c o n f i d e n c e i n h i s a b i l i t y to a d m i n i s t e r
w i t h success the ^ r i S A ^ p h i l e Chester Bowles is i ^ g h t i n g ^ - v
'
yL " .*» * '
£e* over-al^econouftc stabilization
We were
all f o r t u n a t e to be w o r k i n g u n d e r a l a w t h a t g a v e us
f u l l o p p o r t u n i t y to a c c o m p l i s h the r e s u l t s that w e re
desired and expected* We had a good team to administer
the law*
A n d m y b r i e f s u m m a r y shows that the team, while
h a v i n g some changes, is still intact*
It is, I believe, a pa rt of our co mm on k n o w l e d g e
that w a r brings p o w e r f u l in fl ati on ar y pressures to
b e a r on t h e e c o n o m y * T h i s i s b e c a u s e a l a r g e p r o p o r t i o n
of the p o p u l a t i o n is r e m o v e d f r o m it s n o r m a l tasks of
m a k i n g go od s a n d re nd eri ng services for the civilian
population, an d is placed, instead, in the business
S t a t e m e n t of S e c r e t a r y of the T r e a s u r y F r e d M* V i n s o n
Before the
House Banking and Currency Committee
on the
_ _ _ _ _ _ Extension of the Stabilization Act_ _ _ _ _ _
/O
/'*i
^
3* ?;
)fVC,
I a m always v e r y p l e a s e d to a p p e a r be fo re this
pe g B c w t a t t B r w n i a b l e C o m m i t t e e o f t h e C o n g r e s s *
Before
th is C o m m i t t e e c o m e s some of the m o s t i m p o r t a n t l e g i s
lation considered by the Congress*
I have ever found
y o u r w o r k t o be p a i n s t a k i n g a n d t h o r o u g h a n d a l l o f the
m e m b e r s of t h e C o m m i t t e e h a v e a h i g h d e v o t i o n to d u t y
and honesty of purpose*
Of all the important subjects you are called upon
to consider, none, in m y judgment, outranks the p r e v e n
tion of inflation*
T h e e x t e n s i o n of the S t a b i l i z a t i o n
Act, w i t h o u t c r i p p l i n g am en d m e n t s , is the bi g g e s t single
a s p e c t o f o u r b a t t l e a g a i n s t i n f l a t i o n * We-Jawwe w o n T & w
Jfrtt b a t t l e y e a r a f t e r y e a r d u r i n g t h e w a r , a n d I a m
co nf ide nt that no w we are not going to w a lk off the
field and lose by default*
The battle against inflation was m y direct assign
m e n t f r o m o u r g r e a t P r e s i d e n t , F r a n k l i n D# R o o s e v e l t ,
for n e a r l y two years* L a t e r in the Office of W a r
Mobilization and Reconversion, I had a no less vital
TREASURY DEPARTMENT
Washington
Statement
of S e c r e t a r y of the T r e a s u r y Fred M. V i n s o n
B e fore the
House
B a n k i n g .and C u r r e n c y C o m m i t t e e
o n the
E x t e n s i o n o f the S t a b i l i z a t i o n Act
1 0 : 0 0 A ’,M,, W e d n e s d a y ,
M a r c h 27,
1946
.
’■
I am always very p l e a s e d t o a p p e a r b e f o r e this able
Committee of the Con g r e s s ,
B e f o r e this C o m m i t t e e comes some o f
the m o s t imp o r t a n t i e g i s l a t i ô n c o n s i d e r e d t$r the Congress,
I
have ever found y o u r w o r k to be p a i n s t a k i n g and t h o r o u g h and
all of the m e m b e r s of the C o m m i t t e e hav e a h i g h d e v o t i o n to d u t y
and h o n e s t y of pur p o s e .
O f al l . t h e i m p o r t a n t s u b j e c t s y o u are c a l l e d u p o n to c o n
sider, ' h o n e i n m y judgment, o u t r a n k s the p r e v e n t i o n of i n f l a
tion.
The e x t e n s i o n of the S t a b i l i z a t i o n Act> w i t h o u t cri p p l i n g
amendments, is the b i g g e s t single a s p e c t of our b a t t l e ag a i n s t
inflation.
We w o n this b a t t l e y e a r a f t e r y e a r d u r i n g the war,
and I am c o n f i d è n t that n o w ' w e are not g o i n g to w a l k o ff the
'field and lose b y default.
The b a t t l e against inflation was m y d i r e c t a s s i g n m e n t f r o m
our g r e a t President, F r a n k l i n D, Roosevelt, for n e a r l y two years.
Later in the O f f i c e of W a r M o b i l i z a t i o n and R e c o n v e r s i o n , I h ad
a ho less vital interest in ec o n o m i c s t a b i l i z a t i o n w h i l e W i l l i a m
K. D a vis was the field g e n eral in the O f f i c e of E c o n o m i c S t a b i l
ization.
At all times b o t h of us h a d the c o u r a g e o u s and able
help of C h e s t e r h 0wles, the A d m i n i s t r a t o r o f the Offi c e o f Price
A d m inistration.
I should like to repo r t also that Paul Port e r
was one o f m y a s s i s t a n t s while I ;was" iri'the Office of E c ô n o m i c
Stabilization.
H e ’d i d a fine job for us there, a n d !• h ave full
confidence in his a b i l i t y t o : a d m i n i s t e r W i t h success the O f fice
of Price A d m i n i s t r a t i o n while" C h e s t e r B o w l e s is c a r r y i n g out
the o v e r-all p r o g r a m of e c o nomic sta b i l i z a t i o n .
W e w ere all
fortunate to be w o r k i n g u n d e r à l aw that gàve us full o p p o r t u n i t y
to a c c o m p l i s h the r e s ults that 'were- d e s i r e d and expected, 'W e had
a good team to a d m i n i s t e r t h e law.
A n d ' m y b r i e f s u m m a r y shows
that the team, while h a v i n g some changes, is still intact.
V-275
2
It is, I believe, a par t of our common k n o w l e d g e that war
b r i n g s p o w e r f u l i n f l a t i o n a r y p r e s s u r e s to b e a r on the economy,
1’h i s is b e c a u s e a large p r o p o r t i o n of the p o p u l a t i o n is removed
f r o m its n o r m a l tasks o f . m a k i n g g o ods and r e n d e r i n g services
for the c i v i l i a n p opulation, and is placed, instead, in the
b u s i n e s s of m a k i n g the g o o d s and r e n d e r i n g the services of war.
The p r oduct o f the p e r s o n s in the a r m e d forces and in the w a r
i n d u stries is not of a type w h i c h can b e ’ sold to the c i v ilian
p o p u l a t i o n ;..but the p e r s o n s p r o d u c i n g it continue to receive
incomes, and these incomes w i l l be s p e n t , - i n large part, on the
p r o d u c t s o f the p e r s o n s still in the c i v i l i a n industries.
Dur
ing war, all of the p o p u l a t i o n is l i v i n g on t h e p r o d u c t of only
part of i t .
An u p w a r d p r e s s u r e pn prices is, inevitable, therefore, and
can only be counteracted- b y vigorous m e a s u r e s on the part of.
the G o v e r n m e n t . 5 In. -the case of the w a r w h i c h we have just fin
ished, t h e s e u p w a r d p r e s s u r e s .were the m o s t p o w erful .which have
ye t b e e n g e n e r a t e d in' the A m e r i c a n economy; but' the A m e r i c a n
people, a c t i n g t h r o u g h t h e i r G o v e r n m e n t , c o m b a t t e d t h e m so vi g
o r o u s l y t hat the rise in prices' d u r i n g the w a r w h i c h has just,
ended w a s .l ess than- in any p r e v i © u s .m a j o r w a r in w h i c h the $
United. States has b e e n e n g a g e d . ’.. .
**
.For a c o n s i d e r a b l e p e r i o d d u r i n g W o r l d !W £ r ■It., about, half
of the national- p r o d u c t w a s g o i n g for *w a r p u r p o s e s .
.This, c o m
pares w i t h a m a x i m u m of o n l y a b o u t one,--foufth o f the nat i o n a l
p r o d u c t g o i n g for war p u r p o s e s in W o r l d W a r I —
and. then, for
a m u c h s h o rter period*
Yet, r e t a i l .p r i c e s p a i d ’b y consumers,
a s ' m e a s u r e d in . e a c h case b y the index number, o f ; t h e B u r e a u o f
L a b o r Statistics,- a d v a n c e d o n l y |>I.jpercent b e t w e e n the out•b r e a k o f . t h e - w a r in E u r o p e in 1 9 3 9 a n d ' V J - D a y , as c o m pared ■
w i t h a rise of 6 2 ‘p e r c e n t ^between the o u t b r e a k of the w a r in E u r o p e in 1 9 1 4 -and A r m i s t i c e Day.
W h a t wer e the. m e a s u r e s b y w h i c h pric e s w e r e thus h e l d down
during. World. W a r II?
T h e y may. h e grouped" into" three, major;
classes;: .
, taxation, t h e s t i m u l a t i o n of s a v i n g s ; and* d i rect con
trols. o ver ’prices and t he ’physical" a l l o c a t i o n o f ;g o o d s .
All three, of these'-methods. ,were a p p l i e d Also in W o rld War-I
y et prices rose m u c h more-, a l t h o u g h in r e s p o n s e to .weaker pres
sures*. Why, then, were" we; so m u c h more:, suc c e s s f u l in. W o r l d War
IT?
"
- •”
:'.r" '•
' .i;■-
In the first place, we a p p l i e d all of the m e t h o d s in a
more vigorous fashion.
This was m a d e possible, in large part,
because we s t a r t e d sooner,
We t o o k o ur first step toward the '
wartime level of t a x a t i o n w i t h - t h e e n a c t m e n t of the first
Revenue Act of 1940 in June 1940;
we form e d the A d v i s o r y C o m
mission to the C o u ncil o f N a t i o n a l D é f e n s e in M a y 1940, and so
commenced the o r g a n i z a t i o n . o f the a l l o c a t i o n of goods on the
physical level; we formed the D e f e n s e S a v i n g s S t a f f in M a r c h
1941, and so c o m m e n c e d the o r g a n i z a t i o n of w a r savings. . In
World W a r I, all of the c o r r e s p o n d i n g steps w e r e t a ken after
we h a d . e n t e r e d the war.
As a c o n s e quence, ‘
i n part, of st a r t i n g earlier, we have
achieved b e t t e r results on the fiscal front in ’
W orld W a r II.
Prom July 1, 1940, about ,the b e g i n n i n g of the p r o g r a m of
defense finance, to the p r e s e n t time, 44 p e r c e n t of the e x p e n
ditures of the Federal G o v e r n m e n t h a v e b e e n c o v e r e d b y t a x a t i o n
and o t h e r n o n b o r r o w i n g receipts. ■ This c o m pares w i t h 33 percent
for the W o r l d W a r I p e riod b e g i n n i n g w i t h the o u t b r e a k .of the
war in Europe and c o n t i n u i n g to June 30, 1919.
The mos t i m p o rtant d i f f e r e n c e b e t w e e n World W a r I and W o r l d
War II, however, is t h e .d i f f e r e n c e in em p h a s i s on the d i f f e r e n t
types of controls.
We l e arne d a great deal f r o m expe r i e n c e .
In
World W a r I, very little e m p hasis was p l a c e d on d i r e c t controls.
There was no r a t i o n i n g at the retail level; and no p u b l i c a n
nouncement of fixed prices, e v e n of w a r goods, u n t i l S e p t e m b e r
1917.
furthermore, such price control and a l l o c a t i o n as e x i s t e d
were removed almost i m m e d i a t e l y a f t e r the A r m i stice.
The i n f l a t i o n a r y p r e s s u r e s g e n e r a t e d b y a w a r continue for
some time a f ter it has b e e n c o n c l u d e d on the b a t t l e f r o n t s . In
World W a r I, retail prices rose 62 .percent in the 52 m o n t h s b e
tween the o u t b r e a k of the w ar in E u r o p e in 1914 and A.rmistice
Day.
From A r m i s t i c e D a y u n t i l June 1920, retail prices, rose
another 46 points, m a k i n g a total of 1 0 8 % a b ove the 1914 level.
On the other hand, retail prices h a v e . r i s e n o n l y 0 .5 p e r cent
between VJ-Day and J a n u a r y 15, 1946.
■ ;
The problem, before u-s is to prevent a: repetition of the
experience after World War I. Vie can prevent it if we try;
and one of the most important things to do is to extend the
stabilization Act with as little delay as-possible.
T'he task ahead of us does
remember the work that we have
the armed enemy abroad and the
home, we had our headaches and
not appear so difficult if wë
done. During the fight against
insidious enemy of inflation at
our heartaches. There were
4
s h o r t a g e s of raw m a t e r i a l ^ .
T h e r e w e r e g r eat transfers of
m a n p o w e r fro m p e a cetime p u r s u i t s to w a r production, and f r o m
the homes, to the factories*
'¿'here w e r e kinks in the p r o d u c
tion line and in the t r a n s p o r t a t i o n system. ' In large part we
h a d ' t o p r e pare for w a r a f t e r the b a t t l e h a d started.
And we
were, fig h t i n g e n emies w ho h a d p r e p a r e d for year s .
Yet we
o v e r w h e l m e d the e n e m y w i t h o u r a r m e d might, had more than
e n o u g h to live on at home, and k e p t 'òur e c o n o m y on e v e n keel.
_
A f t e r the s h o o t i n g stopped we had t o . c h a n g e ■o ver again,
this time f r o m w a r to the p u r s u i t s of peace.
A g a i n we have
h ad o ur p r o blems.
B y a nd large, however, the job is done,
and we can say it 'was 'well d o n e . •
Today,we' can be more o p t i m i s t i c about the future t han ever
before.
It w o u l d be p a t h e t i c if we m u f f e d 't h i s ,grand o p p o r t u
nity.
W e mus t m a i n t a i n our co n t r o l s o v e r ‘i n f l a t i o n a little
longer•
’
In view of t h e ' w o r k 1 have had in the field of stabilization,
I have, of course, a s t rong p e r s o n a l interest in the subject.
Of m u c h m o r e importance, however, is the fact that as S e c r e t a r y
o f the T r e a s u r y I h a v e a vital of f i c i a l interest in the p r e v e n
t i o n o f inflation.
Two of the mos t i m p ortant subjects in the T r e a s u r y D e p a r t
m e n t are taxes and the m a n a g e m e n t of the p u blic debt.
Inflation,
or its prevention, has a d i r e c t e f f e c t o n . b o t h problems.
At p r e s e n t we are t r a v e l l i n g a sound and p l e a s a n t road.
Our r e c eipts are l a r g e r than the e s t i m a t e s mad e at the time of
thè P r e s i d e n t ’s B u d g e t M e s sage.
In fact, our net receipts from
»July 1, 1945, t h r o u g h M a r c h 22, 1946, have b e e n o nly 2 percent
less' t han d u r i n g the c o r r e s p o n d i n g p e r i o d of the pr e v i o u s fi s
cal year. O ur revenues hav e b e e n large b e c a u s e our n a t i o n a l in-' ir~
come has s t ayed at a h i g h level.
M e a n while, e x p e n d i t u r e s are
s m a l l e r t han the est i m a t e s mad e at the time of the B u dget M e s
sage.
In fact, our e x p e n d i t u r e s in Feb r u a r y were $ 3 , 5 0 0 , 0 0 0 , 0 0 0
a g a i n s t the h i g h of $ 9 , 7 0 0 , 0 0 0 , 0 0 0 last June.
This d e cline of
n e a r l y t w o - t h i r d s in eight m o n t h s is b e c a u s e we have all made a
w h o l e h e a r t e d effort to leave the w a r t i m e b a sis and adopt the
p e a c e t i m e :c o u r s e . T h e two t o g e t h e r m e a n that we are wel l on the
way to a b a l a n c e d bu d g e t .
That has a novel sound, b u t it is a
h a p p y s i t u a t i o n w h i c h I a m glad to report to. this Committee, to
the Congress, and to all the people of the c o u n t r y who have the
same p r o b l e m in their daily- lives.
5
W i t h our c u r r e n t e x p e n d i t u r e s m u c h lower, the c a s h b a l a n c e
of the T r e a s u r y can be less.
C h i e f l y b y this m e a n s we have b e e n
able to make two s u b s t a n t i a l r e d u c t i o n s in the public debt. That,
too, has s n o v e l sound.
In fact, they are the first substantial
reductions in s i x teen years.
In spite of this g e n e r a l l y goo d situation, taxes mus t r e
main h i g h and the b u r d e n of c a r r y i n g the publ i c debt is still
significant.
The r a i sing of subs t a n t i a l revenues and the
carrying of the p u b l i c debt can b o t h be done w i t h o u t u n d u e b u r
den to o ur economy.
Can be done, that is, if our e c o n o m y is
m a i n t a i n e d at a h i g h level.
The onl y desirable, sound, l o n g - t e r m s o l u t i o n to the p r o b
lems of revenue a n d d e b t m a n a g e m e n t is h i g h - l e v e l production,
employment, and n a t i o n a l income.
W i t h our e c o n o m y in h i g h gea r
the b u r d e n w i l l be m u c h lighter.
Ihe w a r has d e m o n s t r a t e d that
we have a ¿ 200 ,000 ,000,000 nation.
As S e c r e t a r y o f the T r e a s u r y I w ant a sound and e x o ansive
economy.
And on that point the p r e v e n t i o n of i n f l a t i o n has its
all important impact.
We cannot have that stable, h i g h - l e v e l
economy w i t h full production , full employment, a.nd h i g h n a t i o n a l
income, n o r can we m e e t s u c c e s s f u l l y our revenue and debt m a n a g e
ment problems, if we have the d i s l o c a t i o n of all values and
relationships t h r o u g h o u t o u r e c o n o m y that comes w i t h a bad case
of inflation.
We have b u i l t up a t r e m endous d e m a n d for m ost c o n s u m e r
goods.
This d e m a n d is b a c k e d up b y large savings.
The amount
of currency, b a n k deposits, and U n i t e d States sec u r i t i e s owned
by all n o n - b a n k i n v e stors has i n c r e a s e d f r o m about $82,000,000,000
at the end of 1 939 to a b out $ 3 0 0 , 0 0 0 , 0 0 0 , 0 0 0 today. O ur wants,
fortified b y these l i q u i d reserves, can give us the impetus to
begin a volume of p e a c e t i m e p r o d u c t i o n far g r e a t e r than we have
ever seen.
Moreover, these savings can be the flywheel for our
economy for a long time to come.
This can give us the future
that all A m e r i c a n s want.
It c a n be the p l e a s a n t a f t e r m a t h of
war.
This result, however, is. not an i n e v itable one.
W e could
quickly spend o u r s e l v e s in th,e d i s s i p a t i o n of s p i r a l l i n g p r ices
a n d ^ s p e c u l a t i v e marke t s .
We hav e the h e a r t end the mind to
avoid this catastrophe.
Let us have the f o r t itude and the wit
to carry out the d e c i s i o n that we k n o w is right.
Ou r ch i l d r e n
would look b ack and co n s i d e r it the m o s t p a t h e t i c thing our
g e n e r a t i o n did, if, a f t e r t h w a r t i n g the i n f l a t i o n ogre all
through the war, we gave u p just b e f o r e the job was finished.
6
P r o d u c t i o n to m e e t the d e m a n d is the final answer.
Some
quarters* taking a d v a n t a g e of the appeal of this end, have
suggested that the removal of price c o n trols is the b est way
to s t i mulate p r o d u c t i o n and is th e r e f o r e the bes t w a y to beat
the i n f l a t i o n danger.
These people, c o n s c i o u s l y or unconsciously,
o v e r l o o k the n e e d s o f the i n t e r i m period.
A l t h o u g h we are well
on our w a y of p e a c e t i m e p roduction, we cannot pr o d u c e e n o u g h to
m o r r o w or the next day to mee t the d e m a n d that has accumulated
o v e r m o n ths.
D u r i n g that period, the removal of price control
w o u l d be s t i m u l a t i n g -- s t i m u l a t i n g in a fanciful, d i z z y sort of
way.
In m y judgment, there w o u l d be so m u c h effort spent in
b e a t i n g the market, in b u y i n g and s e l ling m a t e r i a l s and i n ven
tories, in c o n c e n t r a t i n g on the s p e c u l a t i v e gain, that we would
find total p r o d u c t i o n d e c r e a s e d r a t h e r tha n increased.
I therefore take issue w i t h those who say that removal of
price control w ill sti m u l a t e a n d increase p r o d u ction.
This
sounds like the 1946 v e r s i o n of the old a r g u m e n t that price
control has stifled prod u c t i o n .
Price control did no t stifle
p r o d u c t i o n d u r i n g the w a r and in spite of the o b s tacles we have
had, the e x p a n s i o n of p e a c e t i m e p r o d u c t i o n in the p e riod since
V J -Day as a w h o l e has b e e n 'inore rapid than in any o t her period
of o u r history.
The p r e s e n t p h y s i c a l level of p r o d u c t i o n in
the w h o l e e c o n o m y is n o w above the a v e rage of the y e a r 1941,
d e s p i t e the tre m e n d o u s p r o b l e m s w h i c h have b e e n p r e s e n t e d to
i n d u s t r y in the p a s t y e a r b y the c h a n g e - o v e r f r o m a w a r t i m e to
a p e a c e t i m e demand.
W h e n the p i p e l i n e s are full, m ost types
of c o n s u m e r s ’ goods will be on the m a r k e t in volume.
But the
e x t e n s i o n o f the S t a b i l i z a t i o n Act is n e c e s s a r y to hold the
line until supp l y once m o r e m a t c h e s demand.
W h e n we are served up t e m p t i n g d e p a r t u r e s f rom our present
program, let us r e m e m b e r - t h a t the record u n d e r price control is
r e m a r k a b l y good.
Let us recall a g a i n and a g a i n that the best
index of retail prices we have showed an increase in the 72
m o n t h s of this w a r of o n e - h a l f wha t it did in the 52 months d ur
ing W o r l d W a r I.
Let us recall that a f t e r N o v e m b e r 11, 1918,
prices c o n t i n u e d to increase r a p i d l y u n t i l June 1 920 w h e n they
r e a c h e d a p o int d o uble w h a t they w e r e * a t the start of the war.
T h e n came the crash.
T h i s time prices have b e e n r e l a t i v e l y
stable since the end of the war.
We are in a good p o s i t i o n to
a v o i d an insecure b o o m fol l o w e d b y a terrible collapse.
Let
us not u ndo w h a t we h a v e done.
I fully e n dorse the extension
of the S t a b i l i z a t i o n Act.
oOo
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1+03, WILKINS BLDG.
iminary figures
ngumption during
tvs:
Country of Production
Quantity in Pounds
As of March l6, 19*4-6
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominiean Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
México
Nicaragua
Perú
Venezuela
680,257*931
312,0^7,7^5
12 ,277 ,6*&
153
13,559,093
8 ,866,191
15,7^5,193
32 ,^02,262
13,359,252
**■»375,5^3
21 ,836,231
6,563,151
1,956,032
21 ,766,171
Non-Signatory Countries:
a.:171.697
TOTAL
1 , 166, 22^,289
FOR IMMEDIATE RELEASE
March 26, 19**6
The Bureau, of Customs announced today preliminary figures
showing the quantities of coffee entered for consumption during
the period commencing October 1, 19**5» as follows:
Quantity in Pounds
As of March l6, 19*4-6
Country of Production
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
11 Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
680,257,931
312,047,745
12,277,644153
13,559,093
8 ,866,191
15,785,193
32,402,262
13,359,252
**■,375,5^3
21,836,231
6 ,563,151
1,956,032
21,766,171
21,171.697
Non-Signatory Countries:
TOTAL
1,166,22**, 289
TREASURY DEPARTMENT
Washington
Press Service
No. V-276
POR IMMEDIATE RELEASE
,7eclnesday, March 27 » 1946
The Bureau of Customs announced today preliminary figures
showing the quantities of coffee entered for consumption during
the period commencing October 1, 1945,
follows.
Quantity in Pounds
As of March 16, 1946
Country of Production
Signatory Countries?
680,257,931
312,047,745
12,277,644
153
13,559,093
8,866,191
15,785,193
32 402,262
13,359,252
4,375,543
21,836,231
6,563,151
1,956,032
21,766,171
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
G-uatemala
Haiti
Honduras
Mexic o
,
N ic a r a g u a -
Peru
Venezuela
21,171,697.
Non-Signatory Countries?
TOTAL
1,166,224-,289
Kwm
-3 for such bills, jvh ther 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. 41$* as amended, and this notice, pre
scribe the terms of the Treasury bills and govern the conditions of their issue.
Copies of the circular may be obtained from any Federal Reserve Bank or Branch.
- 2 Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury expressly reserves the right to accept or reject any or
all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, tenders for $200,000 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
April k. 19lt6
... •
Ihe i n c o m e d e rived f r o m Tre a s u r y bills, w h e t h e r i n t e r e s t or gain from
the sale or o t her dis p o s i t i o n of the bills,
shall n o t h a v e a n y exemption,
as such,
a n d loss f r o m the sale or other d i s p o s i t i o n of T r e a s u r y b i l l s shall n o t ha v e any.
special treatment,
as such, u n d e r F e d e r a l t a x Ac t s now or h e r e a f t e r enacted.
b i l l s shall be subject to estate, inherit a n c e ,
gift,
Ihe
or ot h e r exc i s e taxes, whether
F e d e r a l or State, b u t shall be e x e m p t f r o m all t a x a t i o n now or h e r e a f t e r imposed
on the p r i n c i p a l or’ i n t e r e s t t h e r e o f b y a n y State,
the U n i t e d States,
or a n y of the p o s s e s s i o n s of
or b y a n y l o c a l t a x i n g authority.
F o r p u r p o s e s of taxation the
a m o u n t of d i scount at w h i c h T r e a s u r y b i l l s are o r i g i n a l l y solo, b y the U n i t e d States
shall be co n s i d e r e d to b e interest.
U n d e r Se c t i o n s 42 a n d 117
(a)
(l) °f the
Int e r n a l R e v e n u e Code, as a m e n d e d b y S e c t i o n 115 o f the R e v e n u e A c t o f 1941, the
a m o u n t of d i s c o u n t at w h i c h b i l l s i s s u e d h e r e u n d e r are sold s hall n o t be considered
to accrue u n t i l such b i l l s shall b e sold,
r e d e e m e d or o t h e r w i s e d i s p o s e d of, and
such b i l l s are excl u d e d f r o m co n s i d e r a t i o n as cap i t a l assets.
owner of T r e a s u r y b i l l s (other th a n life i n s u r a n c e
companies)
Accordingly,
the
i s s u e d hereunder
n e e d i n c l u d e i n his income t a x r e t u r n o n l y the d i f f e r e n c e b e t w e e n the price paid
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Friday» J togh. 2.9,. I9lt$ ________ •
The Secretary of the Treasury, by this public notice, invites tenders
for $1,300,000,000
, or thereabouts, of
92
-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided.
mature
The bills of this series will be dated
April h* 1 9 U 6 _____ , and will
•,
wte
July 5, 19U6
when the face amount will be payable without
interest.
They will be issued in bearer form only, and in denominations of $1,000,
$ 5 ,000, $10 ,000, $100,000, $500,000, and $1 ,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the
Standard
closing hour, two o ’clock p.m., Eastern Hbcx time, Monday, April 1, 19l;6______
.
38*
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 f, 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 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. -
Im m ediately a f t e r the c lo s in g hour, ten d ers w i l l be opened a t the Federal
TREASURY DEPARTMENT
W a s h in g t o n
.
EOR R E L E A S E , MORNING NEWSPAPERS,
E r i d a y , M a rc h 2 9 , 1 9 4 6
The S e c r e t a r y o f t h e T r e a s u r y , b y t h i s p u b lic - n o t i q e ,
in v it e s te n d e rs f o r {1 ,3 0 0 ,0 0 0 ,0 0 0 , o r th e re a b o u ts , o f 9 2 -d a y
T r e a s u r y b i l l s , t o b e ' i s s u e d on a d i s c o u n t b a s i s u n d e r com
p e t i t i v e an d f i x e d - p r i c e b id d in g a s h e r e in a f t e r p r o v id e d .
The
b i l l s o f t h i s s e r i e s w i l l be d a t e d A p r i l 4 , .1 9 4 6 , a n d w i l l
m a tu re J u l y 5 , 1 9 4 6 , when t h e f a c e a m o u n t w i l l be p a y a b le w i t h
o u t i n t e r e s t . - T h e y w i l l be i s s u e d i n ’ b e a r e r , f o r m o n l y , *a n d
i n d e n o m in a t io n s o f $ > 1 ,0 0 0 , . { 5 , 0 0 0 , { 1 0 , 0 0 0 , § 1 0 0 , 0 0 0 , § 5 0 0 , 0 0 0 ,
a n d § 1 , 0 0 0 , 0 0 0 ( m a t u r i t y valu e .).#
T e n d e r s w i l l be r e c e i v e d 1. a t F e d e r a l R e s e r v e .B a n k s a n d
B r a n c h e s u p t o t h e c l o s i n g h o u r , tw o o ’ c l o c k p .m .* E a s t e r n
S t a n d a r d t im e , M ond ay, A p r i l 1,. 1946. ' T e n d e r s w i l l n o t be r e
c e iv e d a t t h e T r e a s u r y D e p a r t m e n t , W a s h in g t o n .
Each te n d e r
m u st be f o r a n e v e n m u l t i p l e o f { 1 , 0 0 0 , ’ a n d t h e p r i c e o f f e r e d
m ust be e x p r e s s e d on the. b a s i s o f 1 0 0 ,; w i t h n o t m ore .th a n t h r e e
d e c i m a l s , e . g . , 99.925. F r a c t i o n s ma-y n o t be u s e d .
I t is
u r g e d t h a t t e n d e r s be made on t h e p r i n t e d , f o r m s a n d f o r w a r d e d
i n t h e s p e c i a l e n v e lo p e s w h ic h w i l l be s u p p l i e d b y F e d e r a l
R e s e r v e B a n k s o r B r a n c h e s •o n . a p p l i c a t i o n t h e r e f , o r ,
%
T e n d e r s w i l l be r e c e i v e d w i t h o u t » d e p o s i t f r o m i n c o r p o r a t e d
b a n k s a n d t r u s t c o m p a n ie s a n d f r o m r e s p o n s i b l e a n d . r e c o g n iz e d
d e a le r s in in v e s t m e n t . s e c u r it i. e s .
T e n d e r s f r o m - .o t h e r s m u st
be a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t - o f t h e . f a c e am o u n t o f T r e a s u r y b i l l s a p p l i e d f o r , u n l e s s t h e ’ t e n d e r s 'a r e .a c c o m p a n ie d
by an e x p r e s s g u a r a n t y o f p a y m e n t b y an. i n c o r p o r a t e d b a n k o r
t r u s t com pany.*
Im m e d ia t e ly a f t e r t h e c l o s i n g h o u r , t e n d e r s w i l l be o p e n e d
a t t h e F e d e r a l R e s e r v e - B a n k s a n d B r a n c h e s , f o l l o w i n g w h ic h p u b l i c
a n n o u n c e m e n t w i l l be made b y t h e S e c r e t a r y o f t h e T r e a s u r y o f
th e am ount and p r i c e ra n g e o f a c c e p te d b id s .
T h o se s u b m it t in g
t e n d e r s w i l l be a d v i s e d o f t h e a c c e p t a n c e o r r e j e c t i o n t h e r e o f .
The S e c r e t a r y o f t h e T r e a s u r y e x p r e s s l y r e s e r v e s t h e r i g h t t o
a c c e p t o r r e j e c t a n y o r a l l t e n d e r s , i n w h o le o r i n p a r t , a n d
h i s a c t i o n i n a n y s u c h r e s p e c t s h a l l be f i n a l .
S u b je c t to
t h e s e r e s e r v a t i o n s , t e n d e r s f o r { 2 0 0 , 0 0 0 o r l e s s f r o m a n y one
b id d e r a t 9 9 .9 0 5 e n t e r e d on a f i x e d - p r i c e b a s i s w i l l be a c c e p t e d
in f u l l .
P a y m e n t o f a c c e p t e d t e n d e r s a t t h e p r i c e s o f f e r e d m u st
be made o r c o m p le t e d a t t h e F e d e r a l R e s e r v e B a n k i n c a s h o r
o t h e r im m e d ia t e ly a v a i l a b l e f u n d s on A p r i l 4 , 1 9 4 6 .
The in c o m e d e r i v e d f r o m T r e a s u r y b i l l s , w h e t h e r i n t e r e s t o r
g a in fr o m t h e s a l e o r o t h e r d i s p o s i t i o n o f t h e b i l l s , s h a l l n o t
h a v e a n y e x e m p t io n , a s s u c h , a n d l o s s f r o m t h e s a l e o r o t h e r
- 2
d i s p o s i t i o n of T r e a s u r y bills shall n o t have a n y s p e c i a l t r e a t
ment, as such, u n d e r F e d e r a l t a x A c t s n o w or h e r e a f t e r e n a c t e d 4
Th§ bills s h all be s u b j e c t to estate,- inheritance, gift, or
other excise taxes, w h e t h e r F e d e r a l or State, b ut .shall be
exem p t f r o m a ll ta x a t i o n n o w or h e r e a f t e r i m p o s e d on the p r i n
c i pal or i n t e r e s t thereof by a n y State, or any. of the possessions
of t he U n i t e d States, or by a n y local taxing a u t h o r i t y *
For
p u r p o s e s of ta x a t i o n the' a m o u n t of d i s c o u n t at w h i c h T r e a s u r y
bills are o r i g i n a l l y sol d by the U n i t e d States shall be c o n
s i d e r e d to be interest.
U n d e r S e c t i o n s 42 a nd 117 (a) (1) of
the I n t e r n a l R e v e n u e Code, as a m e n d e d by S e c t i o n 115 of the
R e v e n u e A c t 'of 1941, the a m o u n t of d i s c o u n t at w h i c h bills issued
h e r e u n d e r are s o l d s h a l l n o t be c o n s i d e r e d to a c c r u e u n t i l such
bills s h a l l be sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, a nd
s u c h bills are excluded, •from c o n s i d e r a t i o n as c a p i t a l assets*
A c c o r d i n g l y , the owner of T r e a s u r y bills (other than life in
s u r a n c e c o m p anies) issu e d h e r e u n d e r n e e d include in his income
t a x r e t u r n . o n l y the d i f f e r e n c e b e t w e e n the p r i c e pai d f o r such
bills, w h e t h e r on o r i g i n a l issue or on s u b s e q u e n t purchase, and
the a m o u n t ‘a c t u a l l y r e c e i v e d eith e r upo n sale or r e d e m p t i o n at
m a t u r i t y d u ring the t a x a b l e y e a r f o r w h i c h the r e t u r n is made,
as o r d i n a r y gain or loss.
T r e a s u r y D e p a rt m e n t C i r c u l a r H o . 4 1 8 , a s a m e n d e d , a n d t h i s
n o t i c e , p r e s c r i b e t h e te rm s o f t h e T r e a s u r y b i l l s a n d g o v e r n
th e c o n d it io n s o f t h e ir is s u e .
C o p ie s o f t h e c i r c u l a r may be
o b t a in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B ra n c h *
-0O0 -
C o o p e r a t io n o n p o l i t i c a l p r o b le m a
t h a t a f f e c t w o r ld s e c u r i t y i s e s s e n t i a l .
B ut i t la n o t en ough .
We m u st p r o v id e
a s o u n d e c o n o m ic f o u n d a t io n f o r p e a c e #
We h a v e m ade g o o d p r o g r e s s on th e
r o a d o f i n t e r n a t i o n a l e c o n o m ic c o o p e r a t io n
We
have m a d e g o o d progress i n b u i l d i n g
a so u n d a n d e x p a n s iv e econ om y a t h o m e.
I f w # c o n tin u e t o a p p ly o u r s e lv e s , i f
w e e x e r c is e t h e sam e I n t e l l i g e n c e a n d
u n it y o f p u rp o se t h a t w e d id d u r in g
th e w a r , w e c a n lo o k fo r w a r d w ith f u l l
f a it h to a b r ig h t fu tu r e .
ft a r e d e t e r m i n e d t h a t t h e u n i t e d
H a tto n s s t a l l d o e v e r y th in g in t h e ir
p o w er t o b u i l d s u c h a w o r ld *
Wo h a v e s t a r t e d w ith t h e
p r o p o s itio n t h a t i f c o n f l i c t s b e tw e e n
n a tio n s a r e n o t t o b e s e t t le d a g a in
b y f ir e an d sw ord* s e e » o th e r w ay
o u s t b e fo u n d t o d e a l w ith in te r n a tio n a l
p r o b le m s *
T h e c a n n o n -s e n s e w a y i s t o
d e a l w i t h s u c h p r o b le m s th r o u g h
d is c u s s io n an d a g re e m e n t *** th r o u g h
in te r n a tio n a l c o o p e r a tio r u
F o r e i g n t r a d e I® a n I m p o r t a n t f a c t o r
In o u r n a tio n a l econ om y*
1 su p p o s e a l l o f u s « a t o n e tim e
o r a n o th e r , h a ve th o u g h t o f th e g r o a t
tu r n in g p o in ts o f h is t o r y an d w o n d ered *
D id p e o p le k n o w t h e n t h a t w h a t t h e y
w e r e d o in g w o u ld d e c id e t h e f a t e o f
n a tio n s ?
w e liv e In
c r i t i c a l tim e *
just s u c h a
T h e d e c is io n s w e m ake
n o w m a y s h a p e t h e d e s t i n y o f t h e w o r ld
f o r g e n e r a tio n s *
9 e h a v e 0 » m ore ch a n ce t o b u ild
a w o r ld I n w h ic h c o u n t r ie s c a n l i v e a n d
w ork to g e th e r In p e a ce an d p r o s p e r ity *
«• if*7 M
Ibis Financial Agreement is good
business for the United States.
lb®
credit m extend may prove to be on®
of the most important investments we
have yet mad® in world peace and prosperity.
# 2> i*’6'eir*'erro
lot only is the
bo repaid,
dollars to
bat American business will
i m p rich dividends through its access
to world markets on a fair and equal
*
basis.
The expansion of international trade
will be a great help to this country in
carrying out our own policy of maintaining
high levels of production and employment.
I s h e u ld l l k e
to a m p h a s i z o t i m t
E n g la n d w i l l s t i l l b a v e t o e n f o r e e a n
a u s te r e
Standard o f e o n a w a p t i ö a # l i t t l e
d i f f e r e n t f r « ® tarnt o f tim w a r y e a r s »
T i l l s c r e d i t I * n o t ft g l f t #
1t
1 s a loan# a loa» w h i e h m g l a n d i s t o
repay»
I t b e a rs In te r e s t a t 2 p e re a n t,
t r a t e c o m p a r a b le t o t h e a w e n s n o n t ’ s
e o s t o f b o r r o w in g s o n e y *
I t is n ot an
u n c o n d itio n a l c r e d it — * i t i s a c r e d it
w h ie h » i s t b e u s e d o n ly t o m e e t B r i t e i n ^
c u r r e n t p a y a o n ts an d t o e n a b le h e r t o
ro m o ve im * w a r tiia e c u r r e n c y a n d t r a d e
r e s tr lc tlo n s *
su c h a p r o v is io n t o ta k e ear® o f
an em ergen cy s itu a tio n is c e r ta in ly
p r e fe r a b le t o fo r c in g & d e fa u lt.
T h e g r e a te r p a r t o f th e c r e d it
« i l l b e u sed to p a y fo r e x p o rts
fr e e th e u n ite d s t a t e s *
D ir e c tly
an d in d ir e c t ly n e a r ly a l l o f th e
money « i l l u l t i m a t e l y b e s p e n t
th e U n ite d s t a t e s *
la
m e c r e d it to
E n g la n d « i l l e n a b le h e r t o m a in ta in
h e r e s s e n t i a l im p o r ts o n a m o d e st
le v e l*
Any part of the credit not used by
then will reduce the mount owed by
England,
Beginning in 1951# England
is to repay the credit with Interest
at 2 percent,
a s will do this in
59 equal annual payments.
The principal of the credit due
each year must be repaid without
qualification.
Under conditions of
severe depression in
world trade, and
under objective standards written in the
Agreement, the interest due in any given
year would be waived, but payment of
Interest would be resumed as soon as
trade recovers.
•» lj.3 «•
Part of the credit Qigland needs
she will get free other countries*
Canada has a vital interest in
securing British agreement to those
principles and she will help England
adhere to then*
Much of the credit
England can get only from us*
Under the Financial Agreement,
England can draw upon the line of
M3
credit of g 'ljfA billion dollars
1951*
fyO, o ao.oe,
until
The money is to be used to pay
for her imports and other current
needs.
We have asked England to adopt
these principles because they will
help world trade and American trade*
In the long run« these fair trade and
currency practices will help England,
too*
With expanded world trade, British
exporters will find better markets*
ait
It will take several years before
British exports are increased sufficiently
to make good her heavy foreign exchange
losses during the war*
In the meantime,
England needs credit If she is to secure
the imports essential to her people and
to her economy*
A n y q u a n t i t a t i v e l i m i t a t i o n t h a t E n g la n d
f i n d s i t n e c e s s a r y t o im p o s e o n h e r
im p o r ts w i l l b e a p p lie d on a n e q u a l
t e s t s to w a rd a l l c o u n tr ie s *
6#
E n g la n d w i l l s u p p o r t t h e
A m e r ic a n p r o p o s a l f o r a n I n t e r n a t i o n a l
T ra d e O r g a n is a tio n t o r e d u c e tr a d e
b a r r ie r s s a d e lim in a te tr a d e r e s t r ic t io n s
I n t h i s w a y , E n g la n d s u p p o r t s o u r p o l i c y
o f exp an d ed tr a d e , w ith a l l c o u n tr ie s
h a v in g a c c e s s t o w o r ld m a r k e ts o n
f a i r te r m s*
in la n d 's su p p o rt o f ou r
p ro p o sal au gu rs w e n fo r th e su ccess o f
t e e U n ite d H u tto n s T r a d e C o n fe r e n c e
t o b e h e ld l a t e r t h i s y e a r #
MM*>
to
This largo debt will not be used to
exclude American products from the
sterling area, or to put our exporters
at a disadvantage In competition with
British exporters,
5,
England »s Import controls will
b® acfcninistored in a manner which does
not discriminate against American
products.
That means England will not
keep out American cotton, tobacco,
grains, fruits and nuts, or our
Industrial products in order to buy
these same goods In other countries.
F o r a l l p r a c t i c a l p u r p o s e s A m e r ic a n
b u s in e s s m e n c a n b e j u s t a s s u r e o f
p a y m e n t f o r t h e i r s a l e s i n E n g la n d
a s th e y w ere b e fo r e th e w ar#
4«
T h e b lo c k e d s t e r l i n g b a la n c e s
w i l l b e s e t t l e d b y E n g la n d a n d t h e
c o u n tr ie s co n ce rn e d »
A n y p a y m e n ts
o n t h e s e b a la n c e s # m ade no® o r la t e r #
w i l l b e f r e e f o r m a k in g p u r c h a s e s I n
a n y c o u n tr y , in c lu d in g th e u n ite d s t a t e s .
T h a t m o o n s E n g la n d w i l l n o t f o r c e t h e s e
c o u n t r i e s h o l d i n g m o r e t h a n 15--M11 1 an
d o H e r t r i n sterling t o b u y B r i t i s h
I n s t e a d o f A m e r ic a n g o o d s .
** 38 **
T h a t m ean s I n d ia c o u ld u s e d o lla r s
t o b u y A m e r ic a n m a c h in e r y in s t e a d o f
b e in g fo r c e d t o b u y E n g lis h m a c h in e r y ,
3«
C u rren t e x p o rts o f go o d s an d
s e r v i c e s fr o m t h e u n it e d s t a t e s t o
E n g la n d
win b e
p a id f o r in d o lla r s ,
o r i f p a id in p o u n d s, th e m oney c a n b o
c o n v e r t e d i n t o d o l l a r s b y A m e r ic a n
e x p o rte rs*
T h a t m o a n s t h a t A m e r ic a n
c o m p a n ie s w h ic h i n t h e p a s t h a v e
e x p e r ie n c e d c o n s id e r a b le d i f f i c u l t y
in g e t t in g t h e i r e a r n in g s o u t o f
E n g la n d w i l l n o w b e p a id i n d o l l a r s .
T h e s e d o lla r s c o u ld b o u se d m l y I f J
a llo c a t e d , a n d London d id n o t a llo c a t e
u n le s s th e g o o d s w a n te d c o u ld n o t b e
O b ta in e d i n a n y s t e r l i n g a r e a c o u n tr y «
A m e r ic a n p r o d u c e r s l o s e m a r k e t s , a n d
f a s t , u n d e r t h a t sy ste m «
U nder th e
p r o v is io n s o f th e F in a n c ia l A greem en t
e v e r y c o u n tr y in th e s te r lin g a r e a w i ll
h a v e c o m p le te fr e e d o m t o u s e i t s d o ll a r s
a s i t w is h e s «
A ll d o lla r s th a t th e
s t e r lin g a r e a c o u n tr ie s r e c e iv e fo r
t h e i r e x p o r ts c o u ld b e s p e n t i n t h e
U n ite d s t a t e s w ith o u t o b ta in in g a n
a l l o c a t i o n fr o m E n g la n d «
I f M e x ic o a s t ¡¡¡¡¡¡H e x p o r t t o a g l a n d
th e y w i ll b e a b le t o u se th e m oney
th e y r e c e iv e in a n y c o u n try *
That
m ean s t h e y c o u ld c o n v e r t t h e s t e r l i n g
in to d o lla r s and b u y r a d io s o r
r e fr ig e r a t o r s in th e u n ite d s t a t e s *
2*
W ith in a y e a r * u n le s s w e
a g r e e t o a te m p o ra ry e x te n s io n ,
B r ita in w ill d is s o lv e th e s t e r lin g
a r e a d o lla r p o o l*
a ir in g th e w a r,
u n d e r th e d o lla r p o o l, w hen a s t e r lin g
a r e a c o u n tr y r e c e iv e d d o lla r s th e y
w e r e p o o le d i n L o n d o n *
T h e ir r e p r e s e n ta tiv e s a g r e e d , l a
tu r n , th a t s u b je c t t o th e a p p r o v a l
o f F a r l i a a s n t t h e y w o u ld c o s s n it
t h e m s e lv e s t o re m o v e v a r io u s w a r tim e
r e s t r ic t io n s an d d is c r im in a tio n s »
I n b r i e f , t h i s i s « f ia t E n g la n d
u n d e r ta k e s t o do u n d e r th e F in a n c ia l
Agrmmm i
L
/
&
n>
1*
w ith in a y e a r , u n le s s w e a g r e e
t o a te m p o r a r y e x t e n s i o n , E n g la n d w i l l
» M s a l l s te r lin g a r is in g f ro a cu rre n t
tr a d e c o n v e r tib le »
E n g la n d w i l l t h u s
r e tu r n t o th e fr e e u se o f s te r lin g in
in te r n a tio n a l tr a d e t h a t s h e p e r m itte d
b e fo r e th e w ar»
*
•
O at o f d is c u s s io n an d a greem en t
b e tw e e n t h e r e p r e s e n t a t iv e s o f th e
U n ite d S t a t e s a n d o f E n g la n d c a n e
th e p ro p o sed F in a n c ia l A greem en t now
b e fo r e c o n g r e s s f o r a p p r o v a l«
We fo u n d
a w a y t o h e lp E n g la n d m e t hear p r o b le m
w i t h i n t h e fr a n s w c e r k o f t h e f a i r
cu rre n cy an d tr a d e p r in c ip le s th a t
h a v e b e a u a c c e p te d b y th e u n it e d N a tio n s #
O ur r e p r e s e n ta tiv e s a g re e d th a t
s u b je c t t o th e a p p r o v a l o f c o n g r e ss w e
w o u ld o p e n a
lias o f
c r e d it o f
b t t i i o n d e l l a « ! t o b e u s e d b y E n g la n d t o
p a y f o r h e r m o s t e s s e n t i a l im p o r ts *
\
m
m
A n d o t h e r c o u n t r i e s w o u ld b e u n a b le
t o r e c o n s tr u c t t h e ir bom bed an d
w r e c k e d e c o n o m ie s *
T h e hop® f o r
i n t e r n a t i o n a l e c o n o m ie c o o p e r a t i o n
m ig h t b e l o s t f o r e v e r *
The con seq u en ces
t o w o r ld p r o s p e r it y , a n d e v e n t o w o r ld
p e a c e , w o u ld b e d i s a s t r o u s *
That is
s o t t h e k in d o f w o r ld o u r p e o p le w a n t*
Our b a s ic g o a l i s to e s ta b lis h
a w o r ld i n w h ic h c o u n t r ie s c a n l i v e
an d w o rk to g e th e r in p e a ce an d p r o s p e r ity *
I n t e r n a t i o n a l e c o n o m ic p r o b le m s c a n n o
m o re b e s o lv e d b y e c o n o m ic f o r c e t h a n
p o l i t i c a l p r o b le m s c a n b e s o l v e d b y w a r *
We would have to defend ourselves,
we would retaliate»
That would be economic warfare*
Probably we would win» but It would
bo a pyrrhie victory»
world trade
would be destroyed* and ell countries
would suffer»
If England and the
United states ätould drift Into such
a policy It would be a tragedy for all*
We would find our trade decreased and
our people unemployed»
England would
find her standard of living deteriorated
and her people ingttverlshed»
n
m g la n d f s a c tio n « 1 1 1 s e t th e p a tte r n
f o r t h e « h o l e B r i t i s h E m p ir e a m
th e
s t e r lin g a r e a en d fo r m any c o u n tr ie s
in E u rope#
T h ese c o u n tr ie s a c c o u n t
f o r m a r ly o n e -h a lf o f th e in te r n a tio n a l
tr a d ® o f th e e n t i r e w o r ld *
The
c o n tin u a tio n o f c u r r e n c y an d tr a d e
r e s t r i c t i o n s i n E n g la n d w i l l n e c e s s i t a t e
t h e ir c o n tin u a tio n in la r g o a r e a s o f
t h e w o r ld #
Their p r a c t i c a l e f f e c t
w o u ld b e t o i s o l a t e t h e u n i t e d s t a t e s
fr o m a n en o rm o u s t r a d in g
aim« Qur
p o s i t i o n i n w o r ld t r a d e w o u ld b e
th r e a te n e d #
dir tracie vith Bugiano «wild be a
trickle under such eonditlons#
In
fact thè £orantion of a Britlsh
economie bloc night oxclude us fron
trade vith most of thè Britlsh Empire»
thè sterline area» and thè countries
vith «hlch England has establlshed
trade and payraonts agroenaiits*
England*s cholco is very laportant
to us*
dir prograia for International
economie cooperation depends on havtng
aigland adopt tilt fair trade and
currency practlces for vhlch ve stand*
In the meantime, she mist find some
means for continuing her essential
imports*
She needs help to folio»
this course#
The second choice is for England
to continue and even extend her wartime
currency and trade controls*
axe would
form a British economic bloc*
Countries
that wish to sell to England would
be compelled to take payment In British
«ports.
The countries to whoa she owes
0»°J
4 15 billion dollars in blocked sterling
would be compelled to take British
goods in payment of the debts*
** 2 0 ***
fpr
traditions aid Interests argue for
her to find a solution to her problem
within the framework of a world
economy#
The difficulty Is that the
effect of expanding world trade on
bar exports isay not cose for a few
years#
One choice Is for England to
accept fully the program of the
United Ifetlons*
Si© would do this
tqr cooperating promptly with the fair
currency principles of the International
Monetary Fund and with the fair trade
principles of the proposed International
Trade Organization*
This would mean
that England would remove her wartime
currency controls without waiting for
the end of the post-war transition
period*
'<■*>
«•*
T o a s s u r e th e flo w o f e s s e n tia l
im p o r ts d u r in g t h e n e x t fe w y e a r s ,
t h e y m u st h a v e som e h e lp fro m a b r o a d #
T o r e s te r © t h e i r w a r tim e eco n o m y t o
h ig h s ta n d a r d s o f e f f ic ie n c y th e y
m u st in c r e a s e t h e ir e x p o r t tr a d e #
T h e p o l i c y t h a t E n g la n d c h o o s e s
m u st h a v e th e v e r y p r a c t ic a l e f f e c t
o f a s s u r in g h e r p e o p le t h a t th e y c a n
e a t en d w ork in th e f iv e c r i t i c a l
y e a r s ahead#
I t m is t o f f e r th e
o p p o r t u n ity o f e x p a n d in g E n g la n d ’ s
e x p o rt tr a d e to th e le v e l n e c e ssa ry to
m a in ta in t h e l i v i n g s ta n d a r d o f h e r
people a n d t h e o p e r a t i o n o f her i n d u s t r i e s #
2?
l a a d d it io n t o t h i s s h e in c u r r e d
a tre m e n d o u s f o r e ig n d e b t am ong
t h e s t e r l i n g a r e a c o u n t r i e s a m o u n tin g
t o so m e 15 b U H o n d o lla r s m easu red
V
in o u r m oney*
F o r som e tim e « h a t
E n g la n d s e l l s « i l l b e f a r s h o r t o f
w hat sh e m e t buy* n o r w ill sh e have
s u f f i c i e n t in c o m e fr o m o t h e r s o u r c e s
t o m ake u p th e d iffe r e n c e *
that c r e a t e s a d i f f i c u l t p r o b l e m
f o r t h e p e o p le o f E n g la n d *
I t is an
u r g e n t p r o b le m t h a t t h e y c a n n o t d e c i d e
on th e b a s is o f a b s tr a c t p r in c ip le s *
E n g l a n d 's I n t e r n a t i o n a l e c o n o m ic
p o s itio n « a s d is r u p te d b y th e w a r*
In I f H
h e r e x p o r ts « e r e o n ly 1*0 % o f
h e r p r e -w a r v o lu m e *
H er p r o d u c tio n
« a s d iv e r t e d fr o m g o o d s f o r e x p o r t
tr a d e t o th e m a te r ie l o f w a r*
E n g la n d s o l d m a n y o f h e r f o r e i g n
in v e s tm e n ts *
fr o m t h e s e *
S h e h a s l o s t t h e in c o m e
S im ila r ly sh e h a s lo s t
m u ch o f h e r in c o m e fr o m s h ip p in g »
in s u r a n c e * b a n k in g a n d o th e r s e r v ic e s *
4#||||j|«*•
I f w e w a it t o o lo n g » c o n tin u e d
r e li a n c e o n w a r tim e c u r r e n c y e n d
tr a d e r e s t r ic t io n s m ay m ake I t m uch
m ore d i f f i c u l t t o rem ove th o s e
r e s tr ic tio n s la te r «
That
is w h y
th e s u c c e s s o f o u r program d ep en d s
la l a r g e part o n s e c u r i n g p r o m p t
ad h eren ce to th e se fa ir cu rren cy
an d tr a d e p r a c tic e s «
u n fo r tu n a te ly *
E n g la n d w i l l n o t b e a b l e t o p u t
th e s e p r in c ip le s in to e f f e c t u n t il
sh e i s assu red # In on e w ay o r a n o th e r,
o f n e c e s s a r y fo o d an d raw m a te r ia ls to
fe e d h e r p e o p le a n d h e r f a c t o r ie s «
We w an t
a p r o s p e r o u s w o r l d , n o t last
fo r th e r e s u ltin g m a te r ia l b e n e f it s ,
im p o r ta n t th o u g h t h e y a r e , b u t e v e n
m o re b e c a u s e a p r o s p e r o u s w o r ld i s
l i k e l y t o b e a p e a c e f u l w o r ld *
In
c o n t r a s t , a w o r ld r a k e d w i t h e c o n o m ic
w a r fa r e a m i d e p r e s s io n c a n n o t b e a
w o r ld o f s e c u r i t y a n d s t a b l e e n d u r in g
peace*
We h ave rea ch ed th e s ta g e w h ere
s u c h o f o u r i n t e r n a t i o n a l e c o n o m ic
program can b e , an d i s b e in g , p u t
in to e f f e c t *
T he b ig d a n g e r i s d e la y *
T h e e x p a n s io n o f w o r ld t r a d e w i l l
b e n e fit a l l c o u n tr ie s »
I t w i l l m ake
i t p o s s ib le t o m a in ta in h ig h l e v e l s
o f p r o d u c t i o n a n d e m p lo y m e n t* a n d t o
r a is e sta n d a rd s o f l i v i n g .
The
a d o p tio n o f f a i r c u r r e n c y a n d t r a d e
p r a c tic e s w i ll g iv e a l l c o u n tr ie s
a c c e s s t o w o r ld m a r k e ts o n f a i r a n d
e q u a l te rm s«
We b e lie v e th a t su ch a program i s
n e c e s s a r y f o r w o r ld r e c o v e r y *
f e know
t h a t i t i s g o o d f o r A m e r ic a n b u s in e s s «
I t i s b e c a u s e o f n o s o r d id m o tiv e *
h o w ever* th a t w e u r g e t h i s program on
th e U n ite d n a tio n s «
-
20
T h rou gh th e In te r n a tio n a l Fund» th e y
w i n rem o ve m o n e ta ry r e s t r i c t i o n s
an d s u b s titu te f a i r sta n d a rd s o f
cu rren cy exchange*
A ll c o u n tr ie s ,
th e n * c a n tr a d e m o re*
A nd th e u n ite d
S ta te s h a s p ro p o sed th a t a n In te r n a tio n a l
T r a d e O r g a n iz a tio n b e e s ta b lis h e d t o
r e d u ce o th e r b a r r ie r s an d d is c r im in a tio n s
t h a t h am p er th e g r o w th o f t
H tro u & i t h is p ro g ra m , th e u n ite d
n a tio n s can p u t in to e f f e c t th e f a i r
c u r r e n c y a n d t r a d e p r a c t i c e s w h ic h w i l l
b e c o n d u c iv e t o a f u l l f lo w o f t r a d e
¡g t h e n a t i o n s *
Again at this meeting there was a
re-dedication to the efficacy of
effort and again there m s a solemn
resolve to make the discussion process
work*
Again* as at Brett on Woods*
there was not only a meeting of the
minds, but also a meeting of cur hearts
The spirit of these meetings builds a
firm foundation for faith in the future
Through the International Bank,
countries will find it possible to
reconstruct and develop their economies
They, then* can produce more*
The representatives of 1|4 countries
not only agreed on the fact that
these economic problems should be
met but also agreed on a complete
and basic constitution of principles
for the two novel institutions*
the ©ixi of
By
1945 »ore than enough
countries ratified this work so that
it could become effective*
We have
Just been to Savannah* Georgia* and
there we established the World Bank
and Fund as living organisms.
17
These
twoinstitutions were conceived
to help promote good economic relations
among nations# and to remove as far as
possible the economic and financial
irritations that feed the greedy god
of war#
Qretton Woods is perhaps the best
example this old world has seen of so
many nations pitting their heads
together to solve their coisaon problems
In tho interest of economic peace
among nations and in their own
self-interest.
There Is, as well, a frank
recognition that the economic warfare
of the 1950*s was part of the master
plan for aggression by Germany and
Japan»
The United states rants the
united Nations to adopt a comprehensive
policy of International economic
cooperation to restore world trade and
to establish standards of fair currency
and trade practice»
we have made much progress»
Bretton Woods representatives of
At
IjJj.
countries agreed on the establishment
and principles of two great institutions,
the International Bank for Reconstruction
and Development and the international
Monetary Fund»
m
1*1 m
*
Our foreign economic policy goes
hand-in-hand with our domestic program#
For some time this country has stood
for international economic cooperation*
• It is a good thing to learn from
experience.
No one will gainsay that,
but people and nations have been known
to fail in the practice of it*
The
policy of cooperation among the nations
is in large part a frank recognition
that the breakdown in world economic
relations was an important factor in
intensifying, here as well as abroad,
the great depression*
«» 1)j M»
The only desirable and long-term
solution of our tax problem raid our
debt problem is a high level of
production, employment, and national
Income.
A large tax from a hlgfr level
of income is less burdensome than a
small tax from a low level of income.
We can have that high level of income.
The war has demonstrated that this is
a 200 billion dollar nation.
It has
also been demonstrated that we can have
mass employment.
We are on the road
to a sound, expansive economy under
the system of free enterprise#
-
13 -
W e are on the road to a balanced
budget.
I n view of the fact that our
current expenditures are ouch loss, the
Treasury does not need to maintain as
large a cash balance, and we have
twice made substantial reductions in
the public debt.
E a c h reduction of
the debt means the carrying charge is
less and our expenditures in turn g o
down.
Y e s , the different factors of a
sound» prosperous economy can influence
and strengthen each other for good
Just
as during a depression general contraction
can lead us into a vicious downward
cycle*
12
Since the President transmitted
the budget to Congress in January,
experience has sho»n our receipts
to be higher and our expenditures to
bo lower than m s estimated at that
time.
Our receipts have been greater
than estimated because our nati oral
incase has remained at a very high
level«
Our expenditures hare been less
than estimated because all of nashlngton
is working to cut back to a peacetime
basis«
In the eight months between
June 19h3 and February Iflfi the rate
of our expenditures was decreased
nearly two-thirds«
e v e r y fa m ily
:e t w i l l
o b l i g a t i o n s t o v e t e r a n s , a n a m a in te n a n c e
s u f f i c i e n t arm ed si
a s ouch a s w e can *
a c c o u n ts
On b o th s c o r e s I
ca n r e p e a t w e a re w e ll on o u r w ay*
- 10 -
A ll th ro u g h th e w ar w e b e s te d t h i s
I n s id io u s enem y*
L e t u s w in t h e
te n th an d fin a l ro u n d * 1
l e a u s t m a in ta in o u r p ro gra m o f
p r e v e n tin g in f la t io n n o t o n ly th ro u g h
d ir e c t c o n tr o ls su ch a s p r ic e c e ilin g s
t u t a ls o th r o u g h l e s s d ir e c t d e te r r e n ts
lik e ta x a tio n .
le n eed la r g e reven u es
n o t o n ly to h e lp th e b a t t le a g a in s t
in fla tio n , b u t a ls o fo r th e v e ry
p r a c t ic a l p u rp o se o f m e e tin g o u r
e x p e n d itu r e s #
'4ÈÈÊ
In d u stry i s e a g e r to n a tc h th a t
dem and w ith p r o d u c tio n a n d i t i s
e a g e r t o t r y o u t i t s n e w ly le a r n e d
p r o d u c tio n k n o w -h o w .
We c e r t a in ly
h a v e a s n a d o -to -o r d e r o p p o r tu n ity t o
r e a c h a h ig h l e v e l o f p r o d u c tio n a n d
e m p lo y m e n t.
of
T h is c a n b e on© a f t e r m a t h
w a r th a t i s p le a s a n t.
T h is go o d fo r tu n e , h o w e v e r, is
n o t in e v ita b le ,
w e c o u ld d i s s i p a t e
q u ic k ly o u r e n e rg y and o u r r e s e r v e s
in s p ir a llin g p r ic e s an d s p e c u la tiv e
m a r k e ts*
We m is t « ìn t im e th e f i g h t
a g a in s t in fla t io n .
I t i s e v e r to th e c r e d it o f th e
A m e r ic a n p e o p le t h a t t h e y d i d n o t
s u c o a a b t o t h e s t a r r y - e y e d p la n s o f
m en w it h l i q u i d p r o m is e s *
stro n g
a s w e a re# i t i s th e w is e r c o u r se to
a v o id th e d a n g e r o f o v e n -te m p ta tio n *
T o d a y w e h a v e th e b e s t o p p o r tu n ity
th a t w e h â v e e v e r h ad fo r m ass
p r o d u c t i o n a n d e m p lo y a ie n t*
D u r ln g
t h e w a r a tre m e n d o u s dem and w a s b u i l t
u p fo r m ost con su m ers* g o o d s.
A t th e
sam e tim e a l a r g e r e s e r v o i r o f s a v in g s
t o b a c k u p t h a t dem and m s c r e a te d *
■pfr *jy ^
A g a in t h e y a r e r i g h t , f o r t h e
sy ste m o f fr e e e n te r p r is e n o t
o n ly p r e s e r v e s th e hum an v a lu e s
m
h o ld d e a r , h u t i t a f f o r d s th e
b e s t o p p o r tu n ity o f m a te r ia l
progress*
T here a r e , o f co u rse ,
th r e a ts t o th e sy ste m o f f r e e
e n te r p r is e #
The b ig g e s t th r e a t I s
m s s u n e m p lo y m e n t*
m e g r o a t d e p r e s s io n p r o v e d
t h a t m a s s u n e m p lo y m e n t c o u l d t o p p l e
o u r sy ste m *
T h e p le a s o f th e f a ls e
p ro p h e ts w ere s tr o n g .
D u r in g t h e w a r o u r p e o p le le a r n e d
w h at i t i s lik e fo r th e Joh to se e k th e
m o t an d th e y a ls o le a r n e d w h a t a
t e r r i f i c p r o d u c tiv e c a p a c ity t h is
n a tio n h a s»
O ur p e o p le w a n t t h i s
h ig h - le v e l econ om y d u p lic a te d in
p e a c e tim e *
T h e y w i l l f e e l t h a t s o m e th in g
i s w r o n g * a s in d e e d i t w i l l b e * i f i t
ta k e s w ar t o m ake a f u l l econ om y*
O ur p e o p le w is h t o r e a c h th e s e
e c o n o m ic o b j e c t i v e s u n d e r t h e s y s t e m
th a t b u i lt u s a g r e a t n a tio n a n d w i l l
b u ild u s a g r e a te r n a tio n —
o f fr e e e n te r p r is e *
th e sy ste m
5
A h ig h l e v e l o f fo r e ig n tr a d e I s a
v it a l and In te g ra l p a rt o f our
d o m e s tic p r o g r a m o f f u l l p r o d u c tio n
a n d e m p lo y m e n t, w i t h a h i g h « ? n a t i o n a l
in c o m e a n d a b e t t e r s t a n d a r d o f l i v i n g
O u r b a s i c e c o n o m ic o b j e c t i v e s c a n
b e s t a t e d s im p ly *
v a s t p r o d u c tio n , a
g o o d J o b f o r e v e r y m an s e e k i n g e m p lo y m e n t,
a h i$ x n a tio n a l In co m e, a n d a f u l l
A m e r ic a n s t a n d a r d o f l i v i n g .
To fin d
an d c a r r y o u t a l l o f th e s a y s an d m eans
t o t h e s e s im p ly s t a t e d b u t m o st
Im p o rta n t o b je c t iv e s w i l l r e q u ir e
a tte n tio n an d a c tio n o n m any fr o n ts *
S u c h a c o u r s e will m o a n m u c h t o o t h e r
p o o p le s , b u t i t i s n o t s im p ly , o r
© van p r im a r ily , a m a tte r o f a ltr u is m *
A s s is tin g in th o b u ild in g o f a sou n d
w o r ld e co n o m y i s i n o u r ow n
s e lf-in te r e s t*
A w o r ld e c o n o m ic a lly
h e a lth y m oans th a t a l l n a tio n s c a n
p ro d u ce m ore*
I t m eans a ls o a la r g e
flo w o f tr a d e am ong n a tio n s .
That
m o a n s m o re m a r k e t s f a r A m e r ic a n
p r o d u c ts *
T h a t m e a n s e e c a n b u y sore
g o o d s t o i m p r o v e ear s t a n d a r d o f
liv in g *
>m jf **
O th e r c o u n t r ie s r e c o & iiz e t h e m a jo r
im p a c t t h a t o u r d o m e s tic p o l i c i e s a n d
a c h ie v e m e n ts h a v e u p o n t h e c o n d it io n
o f t h e w o r ld #
l e t u s r e c o g n iz e t h e ir
Im p o r ta n c e a t l e a s t a s m uch a n d p u t
o u r d o m e s tic e c o n c w in t o h ig h g e a r .
T h e s e c o n d b a s ic p a r t o f o u r jo b
i s t o c o o p e r a te w ith o th e r n a tio n s in
b u ild in g a so u n d w o r ld e co n o m y *
we
o u s t d o o u r p a r t o r a c r e in a s k in g
in te r n a tio n a l c o o p e r a tio n w o rk an d in
e s t a b l i s h i n g h e a l t h y e c o n o m ic r e l a t i o n s h i p s
am ong n a tio n s .
mm'
&
;#•!
mmP'
•«PU
l »tail t o d i s c u s s s o m e of c u r e c o n o m i c
p o l i c i e s w h ic h 1 m c o n v in c e d w i l l
h e lp u s t o h a v e a fu tu r e o f p e a c e a n d
p r o s p e r ity *
B a s ic a lly w e h a v e a tw o fo ld J o b *
w e m u st b u ild s s tr o n g a n d sou n d
eco n o m y I n A m e r ic a *
You h ave h eard
m an y t im e s o f l a t e * I am s u r e * t h a t
t h e e co n o m y o f t h e w o r ld m u st b e s t a b l e
o r w e c a n n o t h a v e a n e x p a n d in g eco n o m y
a t h o st«
w ith t h a t I do n o t d is a g r e e *
t u t X w is h t o e m p h a s iz e , I n t u r n * t h a t
th e w o ild d o e s n o t sta n d a ch a n ce o f
h a v in g a s t a b le eco n o m y u n le s s t h i s
c o u n tr y h a s a so u n d , h lg s t-le v e l econ om y*
I so happy t o v i s i t t h e g r e a t
S t a t e o f Us* T o x i c *
I a s p a r tic u la r ly
p l e a s e t o b e In B u ffa lo an d to m eet
you fo lk s *
You know , I co se h ere
w ith a d e f in it e p r e c o n c e p tio n *
I
b e lie v e th a t you fo lk s a r e lik e a y
f o lk s in K e n tu c k y * a n d w h e th e r y o u
b e lie v e i t o r n o t, 1 ca n a ssu r e you
t h a t m o s t o f t h e p e o p le i n W a s h in g to n
a r e J u s t f o lk s t o o , d o in g t h e i r w o rk
th e b e s t th e y know how *
And b y and
la r g e th e y a r e d o in g a g o o d lo b *
W hat
a lw a y s a n
the f u t u r e
h o ld s fo r u s i s
interesting Question*
TREASURY DEPARTMENT
W a s h in g t o n
FOR R E L E A S E , 8 : 3 0 P . M . , E . S . T . ,
F r i d a y , M a rc h 2 9 , 1 9 4 6 ___________
P r e s s S e r v ie
N o. V -2 78
(T h e f o l l o w i n g a d d r e s s b y S e c r e t a r y V in s o n
b e f o r e t h e B u f f a l o C h am b er o f Com m erce a t
th e S t a t l e r H o t e l, B u f f a lo , N . Y . , i s
s c h e d u le d f o r d e l i v e r y a t 8_: 30 P .M . f E . S . T * .
F r i d a y T M a rc h 2 9 , 1 9 4 6 , a n d i T f o r r e l e a s e
a t th a t t im e .)
TREASURY DEPARTMENT
W a s h in g t o n
FOR R ELEA SE, 8 : 3 0 P . M ., E . S . T . ,
F r i d a y , M a rc h 29» 1 9 4 6 ____________
P r e s s S e r v ic e
N o. V -2 7 8
(T h e f o l l o w i n g a d d r e s s b y S e c r e t a r y V in s o n
b e f o r e t h e B u f f a l o C h a m b e r■ o f Com m erce a t
t h e S t a t l e r H o t e l , B u f f a l o , N . Y *, i s
s c h e d u le d f o r d e l i v e r y a t 8 : 3 0 P . M . , E .S #T. ,
F r i d a y , M a rc h 29» 1 9 4 6 , a n d - i s f o r r e l e a s e
a t th a t t im e .)
I am h a p p y t o v i s i t t h e g r e a t S t a t e o f New Y o r k .
I am
p a r t i c u l a r l y p le a s e d t o be i n B u f f a l o a n d t o m eet y o u f o l k s .
You know , I come h e r e w i t h a d e f i n i t e p r e c o n c e p t i o n .
I b e lie v e
t h a t y o u f o l k s a r e l i k e my f o l k s i n K e n t u c k y , a n d w h e t h e r y o u
b e l i e v e i t o r n o t , I c a n a s s u r e y o u t h a t m o st o f t h e p e o p le i n
W a s h in g to n a r e j u s t f o l k s t o o , d o in g t h e i r w o rk t h e b e s t t h e y
know how .
A nd b y a n d l a r g e t h e y a r e d o in g a g o o d j o b .
W hat t h e f u t u r e h o ld s f o r u s i s a lw a y s an i n t e r e s t i n g
q u e s t io n .
I w is h t o d i s c u s s some o f o u r e c o n o m ic p o l i c i e s w h ic h
I am c o n v in c e d w i l l h e lp u s t o h a v e a f u t u r e o f p e a c e a n d p r o s
p e r it y .
B a s i c a l l y we h a v e a t w o f o ld j o b .
We m u s t b u i l d a s t r o n g
and s o u n d econom y i n A m e r ic a .
Y o u h a v e h e a r d many t im e s o f
l a t e , I am s u r e , t h a t t h e econom y o f t h e w o r ld m u s t be s t a b l e
o r V'/e c a n n o t h a v e an e x p a n d in g econom y a t hom e.
W it h t h a t I do
n o t d i s a g r e e , b u t 1 w i s h t o e m p h a s iz e , i n t u r n , t h a t t h e w o r ld
does n o t s t a n d a c h a n c e o f h a v in g a s t a b l e econom y u n l e s s t h i s
co u n try has a so u n d , h ig h - le v e l eco n o n ^.
O th e r c o u n t r ie s r e c
o g n iz e t h e m a jo r im p a c t t h a t o u r d o m e s t ic p o l i c i e s a n d a c h i e v e
m ents h a v e up o n t h e c o n d i t i o n o f t h e w o r l d .
L e t u s r e c o g n iz e
t h e i r im p o r t a n c e a t l e a s t a s much a n d p u t o u r d o m e s t ic econom y
in t o h ig h g e a r .
The s e c o n d b a s i c p a r t o f o u r jo b i s t o c o o p e r a t e w i t h o t h e r
n a t io n s i n b u i l d i n g a s o u n d w o r ld e co n o m y.
V/e m u st do o u r p a r t
o r more i n m a k in g i n t e r n a t i o n a l c o o p e r a t i o n w o r k a n d i n e s t a b l i s h
in g h e a lt h y e c o n o m ic r e l a t i o n s h i p s among n a t i o n s .
Such a c o u rse
w i l l mean m uch t o o t h e r p e o p l e s , b u t i t i s n o t s i m p l y , o r e v e n
p r im a r ily , a m a tte r o f a lt r u is m .
A s s i s t i n g i n t h e b u i3 - d in g o f
a so u n d w o r ld econom y i s i n o u r own s e l f - i n t e r e s t .
A w o r ld
e c o n o m ic a lly h e a l t h y m eans t h a t a l l n a t i o n s c a n p r o d u c e m o re .
I t means a l s o a l a r g e f l o w o f t r a d e among n a t i o n s .
T h a t m eans
more m a r k e t s f o r A m e r ic a n p r o d u c t s .
T h a t m eans we c a n b u y m ore
goods t o im p r o v e o u r s t a n d a r d o f l i v i n g .
A h ig h l e v e l o f f o r e ig n
t r a d e is - a v i t a l a n d i n t e g r a l p a r t o f o u r d o m e s t ic p ro g ra m o f
f u l l p r o d u c t io n a n d e m p lo y m e n t, w i t h a h i g h e r n a t i o n a l in c o m e
and a b e t t e r s t a n d a r d o f l i v i n g .
O ur b a s i c e c o n o m ic o b j e c t i v e s c a n b e s t a t e d s i m p l v ;
p r o d u c t io n , a good jo b f o r e v e r y man s e e k in g e m p lo y m e n t,
h ig h n a t i o n a l in c o m e , and a f u l l A m e r ic a n s t a n d a r d o f l i v
To f i n d and c a r r y o u t a l l o f t h e w a y s ' a n d m eans t o t h e s e
s im p ly s t a t e d b u t m o st im p o r t a n t o b j e c t i v e s w i l l r e q u i r e
t i o n and a c t i o n on m any f r o n t s .
vast
a
in g .
a tte n
D u r in g th e w a r o u r p e o p le l e a r n e d w h a t i t i s l i k e f o r th e
jo b t o s e e k t h e m an, and t h e y a l s o l e a r n e d w h a t a t e r r i f i c p r o
d u c t iv e
c a p a c it y t h i s n a t io n h a s .
O u r p e o p le w a n t t h i s h i g h l e v e l econom y d u p l i c a t e d i n p e a c e t im e .
They w i l l f e e l th a t
s o m e th in g i s w ro n g , a s in d e e d i t w i l l b e , i f i t t a k e s w a r t o
make a f u l l e c o n o m y .
O ur p e o p le w is h t o r e a c h t h e s e e c o n o m ic o b j e c t i v e s u n d e r
th e s y s t e m t h a t b u i l t u s a g r e a t n a t i o n a n d w i l l b u i l d u s a
g r e a t e r n a t i o n — th e s y s t e m o f f r e e e n t e r p r i s e .
A g a in t h e y a r e
r ig h t , f o r th e sy s te m o f f r e e e n t e r p r is e n o t o n ly p r e s e r v e s th e
human v a lu e s we h o ld d e a r , b u t i t a f f o r d s t h e b e s t o p p o r t u n i t y
o f m a t e r ia l p r o g r e s s .
T h e re a r e , o f c o u rs e , t h r e a t s to th e
s y s te m o f f r e e e n t e r p r i s e .
T h e b i g g e s t t h r e a t i s m ass u n e m p lo y
ment ♦
The g r e a t d e p r e s s i o n p r o v e d t h a t m ass u n e m p lo y m e n t c o u ld
t o p p le o u r s y s t e m .
The p l e a s o f t h e f a l s e p r o p h e t s w e re s t r o n g .
I t i s e v e r t o t h e c r e d i t o f t h e A m e r ic a n p e o p le t h a t t h e y d i d
n o t su ccu m b to th e s t a r r y - e y e d p l a n s o f men w i t h l i q u i d p r o m is e s .
S t r o n g a s we a r e , i t i s t h e w i s e r c o u r s e t o a v o id t h e d a n g e r o f
o v e r - t e m p t a t io n .
T o d a y we h a v e t h e b e s t o p p o r t u n i t y t h a t we h a v e e v e r h a d
f o r m ass p r o d u c t i o n and e m p lo y m e n t.
D u r in g t h e w a r a t r e m e n
d ous demand w as b u i l t u p f o r m o st c o n s u m e r s 1 g o o d s .
At th e
same tim e a l a r g e r e s e r v o i r o f s a v i n g s t o b a c k u p t h a t dem and
was c r e a t e d .
I n d u s t r y i s e a g e r t o m a tc h t h a t dem and w i t h p r o
d u c t io n a n d i t i s e a g e r t o t r y o u t i t s n e w ly l e a r n e d p r o d u c t i o n
kn o w -h o w . We c e r t a i n l y h a v e a m a d e - t o - o r d e r o p p o r t u n i t y t o
r e a c h a h ig h l e v e l o f p r o d u c t i o n a n d e m p lo y m e n t.
T h i s c a n be
one a f t e r m a t h o f w a r t h a t i s p l e a s a n t .
^ T h is g o o d f o r t u n e , h o w e v e r , i s n o t i n e v i t a b l e .
We c o u ld
d is s ip a t e q u ic k ly o u r e n e rg y and o u r r e s e r v e s in s p i r a l l i n g
p r i c e s and s p e c u l a t i v e m a r k e t s .
We m u st c o n t in u e t h e f i g h t
a g a in s t i n f l a t i o n .
A l l t h r o u g h t h e w a r we b e s t e d t h i s i n s i d
io u s enem y.
L e t u s w in t h e t e n t h a n d f i n a l r o u n d .
We m u st
o n ly t h r o u g h
th ro u g h le s s
re v e n u e s n o t
a ls o f o r th e
tu re s.
m a in t a in o u r p ro g ra m o f p r e v e n t i n g i n f l a t i o n n o t
d ir e c t c o n t r o ls s u c h a s p r ic e c e ilin g s b u t a ls o
d ir e c t d e t e rre n t s l i k e t a x a t io n .
We n e e d 'l a r g e
o n ly t o h e l p t h e b a t t l e a g a i n s t i n f l a t i o n , b u t
v e r y p r a c t i c a l p u r p o s e o f m e e t in g o u r e x p e n d i-
O ur n a t i o n s h o u ld s t r i v e t o make b o t h e n d s m eet j u s t a s
e v e ry f a m ily t h a t c o m p o se s. t h a t n a t io n m ust d o .
The p o s t
w a r b u d g e t w i l l be l a r g e .
The le g a c y o f t h e w ar — in d e b t,
o b l i g a t i o n s t o v e t e r a n s , a n d m a in t e n a n c e o f s u f f i c i e n t a rm e d
s t r e n g t h — a c c o u n t s f o r m o st o f t h e i n c r e a s e i n o u r e x p e n s e s .
We mean t o b a la n c e t h e b u d g e t a s s o o n a s p o s s i b l e .
We
mean t o r e d u c e t h e p u b l i c d e b t w h e n e v e r p o s s i b l e xa n d a s much
a s we c a n .
On b o t h s c o r e s I c a n r e p o r t we a r e w e l l on o u r w ay
S in c e t h e P r e s i d e n t t r a n s m i t t e d t h e b u d g e t t o C o n g r e s s
i n J a n u a r y , e x p e r ie n c e h a s show n o u r r e c e i p t s t o be h i g h e r
a n d o u r e x p e n d it u r e s t o be lo w e r t h a n w as e s t im a t e d a t t h a t
t im e .
O ur r e c e i p t s h a v e b e e n g r e a t e r t h a n e s t im a t e d b e c a u s e
o u r n a t i o n a l in c o m e h a s r e m a in e d a t a v e r y h i g h l e v e l .
O ur
e x p e n d it u r e s h a v e b e e n l e s s t h a n e s t im a t e d b e c a u s e a l l o f
W a s h in g to n i s w o r k in g t o c u t b a c k t o a p e a c e t im e b a s i s *
In
t h e e i g h t m o n th s b e tw e e n J u n e 1945 a n d F e b r u a r y 1946, t h e r a t e
o f o u r e x p e n d it u r e s w as d e c r e a s e d n e a r l y t w o - t h i r d s .
We a r e
on t h e r o a d t o a b a la n c e d b u d g e t .
I n v ie w o f t h e f a c t t h a t
o u r c u r r e n t e x p e n d it u r e s a r e much l e s s , t h e T r e a s u r y d o e s n o t
n e e d t o m a in t a in a s l a r g e a c a s h b a l a n c e , a n d we h a v e t w i c e
made s u b s t a n t i a l r e d u c t i o n s i n t h e p u b l i c d e b t .
Each re d u c
t i o n o f t h e d e b t m eans t h e c a r r y i n g c h a r g e i s l e s s a n d o u r
e x p e n d it u r e s i n t u r n go dow n.
Y e s , th e d i f f e r e n t f a c t o r s o f
a s o u n d , p r o s p e r o u s econom y c a n i n f l u e n c e a n d s t r e n g t h e n e a c h
o t h e r f o r good j u s t a s d u r in g a d e p r e s s io n g e n e r a l c o n t r a c t io n
ca n le a d u s i n t o a v i c i o u s dow nw ard c y c l e .
T h e o n ly d e s i r a b l e a n d l o n g - t e r m s o l u t i o n o f o u r t a x p r o b
le m a n d o u r d e b t p r o b le m i s a h i g h l e v e l o f p r o d u c t i o n , e m p lo y
m e n t, a n d n a t i o n a l in c o m e ,
A la r g e t a x fro m a h ig h l e v e l o f
in co m e i s l e s s b u rd e n s o m e t h a n a s m a l l t a x f r o m a lo w l e v e l o f
in c o m e .
We c a n h a v e t h a t h i g h l e v e l o f in c o m e .
The w ar h as
d e m o n stra te d t h a t t h i s is ' a 200 b i l l i o n d o l l a r n J t i o n .
i t has
'a l ‘so b e e n d e m o n s t r a t e d t h a t we c a n h a v e - m a ss e m p lo y m e n t. We
a r e on t h e r o a d t o a s o u n d , e x p a n s iv e econo m y u n d e r t h e s y s t e m
o f fre e e n t e r p r is e .
4
Our f o r e i g n e c o nomic p o l i c y goe s h a n d - i n - h a n d w i t h our
domestic program.
For some time this c o u n t r y has stood for
international e c o nomic c o o p e r a t i o n .
It is a good thing to
learn f r o m e x p e r ience.
No one w i l l g a i n s a y that, but people
and n a t i o n s have b e e n k n o w n to fail in the p r a c t i c e o f it.
The p o l i c y of c o o p e r a t i o n among the n a t i o n s is in large part
a frank r e c o g n i t i o n that the b r e a k d o w n in vrorld e c o n o m i c r e
lations was an i m p o rtant factor in intensifying, here as well
as abroad, the g r e a t depr e s s i o n .
There is, as well, a frank r e c o g n i t i o n that the economic
warfare of the 1 9 3 0 ’s was part of the m a s t e r p l a n for a g g r e s
sion by G e r m a n y and Japan.
T‘h e U n i t e d S t a t e s w a n t s the
United N a t i o n s to a d o p t a „comprehensive p o l i c y of i n t e r n a t
ional economic c o o p e r a t i o n to restore w o r l d trade and to
e s t a blish standards of fair c u r r e n c y and trade practice.
We have m a d e m u c h pro g r e s s .
At B r e t t o n Woods r e p r e s e n
tatives of 44 countries' a g r e e d on the e s t a b l i s h m e n t and
principles of two g r eat institutions, the I n t e r n a t i o n a l B a n k
for R e c o n s t r u c t i o n and D e v e l o p m e n t and the I n t e r n a t i o n a l
M o n e t a r y Fund.
These two i n s t i t u t i o n s wer e c o n c e i v e d to hel p
promote good e c o nomic relations a m o n g nations, and to remove
as far as p o s s i b l e the e c o n o m i c and f i n a ncial i r r i t a t i o n s that
fe-ed the g r e e d y god of war.
B r e t t o n W o o d s is p e r h a p s the b e s t example this old w o r l d
has seen of so m a n y n a t i o n s p u t t i n g t h e i r heads t o g e t h e r to
solve their c o m m o n probl e m s in the interest of e c o n o m i c p e ace
among n a t i o n s and in their ow n s e l f - i n t e r e s t .
The r e p r e s e n
tatives of 44 countries not only a g r e e d on the fact that these
economic pr o b l e m s should be m et but also a g r e e d on a complete
and basic c o n s t i t u t i o n of p r i n c i p l e s for the two n o vel i n s t i
tutions. By the end of 1945 more tha n e n o u g h countries r a t i f i e d
this w o r k so that it could b e c o m e e ffective.
W e have just b e e n
to Savannah, Georgia, and there we e s t a b l i s h e d the W o r l d Ban k
and Fund es l i v i n g organisms.
A g a i n at this m e e t i n g there was
a r e - d e d i c a t i o n to the e f f i c a c y of effo r t and a g a i n there was
a solemn resolve to make the d i s c u s s i o n p r ocess w o rk.
Again,
as at B r e t t o n Woods, there was not onl y a m e e t i n g of the minds,
but also a m e e t i n g of our hearts.
The spirit of these m e e t i n g s
builds a f i r m f o u n dation for f a ith in the future.
T h r o u g h the Inter n a t i o n a l Bank, cou n t r i e s will find it
possible to r e c o n s t r u c t and d e v e l o p t h eir econ o m i e s .
They,
then, -can p r o d u c e more.
T h r o u g h the I n t e r n a t i o n a l Fund, they
will remove m o n e t a r y r e s t r i c t i o n s and s u b s t i t u t e fair s t a n d
ards of c u r r e n c y e x c h ange.
All countries, then, can trade
more.
A n d the U n i t e d States has p r o p o s e d that an I n t e r n a t i o n a l
T r a d e ^ O r g a n i z a t i o n be e s t a b l i s h e d to r e d u c e o t h e r b a r r i e r s and
dis c r i m i n a t i o n s that h a m p e r the g r o w t h of trade.
- 5 -
T h r o u g h t h i s p r o g r a m , t h e U n it e d N a t io n s c a n p u t i n t o
e f f e c t t h e f a i r c u r r e n c y a n d t r a d e p r a c t i c e s w h ic h w i l l he
c o n d u c iv e t o a f u l l f l o w o f t r a d e among t h e n a t io n s *
The
e x p a n s io n o f w o r ld t r a d e w i l l b e n e f i t a l l c o u n t r i e s .
It
w i l l make i t p o s s i b l e t o m a in t a in h i g h l e v e l s o f p r o d u c t i o n
and e m p lo y m e n t, a n d t o r a i s e s t a n d a r d s o f l i v i n g *
The
a d o p t io n o f f a i r c u r r e n c y a n d t r a d e p r a c t i c e s w i l l g i v e a l l
c o u n t r i e s a c c e s s t o w o r ld m a r k e t s on f a i r a n d e q u a l t e r m s .
We b e l i e v e t h a t s u c h a p ro g ra m i s n e c e s s a r y f o r w o r ld
re c o v e ry .
We know t h a t i t i s g o o d f o r A m e r ic a n b u s i n e s s f
I t i s b e c a u s e o f no s o r d i d m o t iv e , h o w e v e r , t h a t we u r g e
t h i s p ro g ra m on t h e U n it e d N a t i o n s .
We w a n t a 'p r o s p e r o u s
w o r ld , n o t j u s t f o r t h e r e s u l t i n g m a t e r i a l b e n e f i t s , im p o r
t a n t t h o u g h t h e y a r e , b u t e v e n m ore b e c a u s e a p r o s p e r o u s
w o r ld i s l i k e l y t o be a p e a c e f u l w o r l d .
In c o n t r a s t ,
a w o r ld r a k e d w i t h e c o n o m ic w a r f a r e a n d d e p r e s s i o n c a n n o t
be a w o r ld o f s e c u r i t y a n d s t a b l e e n d u r in g p e a c e .
' We h a v e r e a c h e d t h e s t a g e w h e re m uch o f o u r i n t e r n a t i o n a l
e c o n o m ic p ro g ra m c a n b e , a n d i s b e in g , p u t i n t o e f f e c t .
The
b ig d a n g e r i s d e l a y .
I f we w a i t to o l o n g , c o n t in u e d r e l i a n c e
on w a r t im e c u r r e n c y a n d t r a d e r e s t r i c t i o n s may make i t much
more d i f f i c u l t t o re m o v e t h o s e r e s t r i c t i o n s l a t e r .
That is
why t h e s u c c e s s o f o u r p ro g ra m d e p e n d s i n l a r g e p a r t on s e
c u r in g p ro m p t a d h e r e n c e t o t h e s e f a i r c u r r e n c y a n d t r a d e
p r a c t ic e s .
U n f o r t u n a t e l y , E n g la n d w i l l n o t be a b l e t o p u t
t h e s e p r i n c i p l e s i n t o e f f e c t u n t i l s h e i s a s s u r e d , i n one
way o r a n o t h e r , o f n e c e s s a r y f o o d a n d r a w m a t e r i a l s t o f e e d
h e r p e o p le a n d h e r f a c t o r i e s .
E n g la n d ’ s i n t e r n a t i o n a l e c o n o m ic p o s i t i o n w as d i s r u p t e d
by t h e w a r .
I n 1944 h e r e x p o r t s w e re o n l y 40% o f h e r pre-*
w a r v o lu m e .
H e r p r o d u c t io n w as d i v e r t e d f r o m 1g o o d s f o r
e x p o r t t r a d e to t h e m a t e r i e l o f w a r .
E n g la n d s o l d many o f
h e r f o r e i g n in v e s t m e n t s .
S h e h a s l o s t t h e in c o m e f r o m t h e s e .
S i m i l a r l y s h e h a s l o s t m uch o f h e r in c o m e f r o m s h i p p i n g ,
i n s u r a n c e , b a n k in g a n d o t h e r s e r v i c e s .
In a d d it io n to t h is
sh e i n c u r r e d a tre m e n d o u s f o r e i g n d e b t among t h e s t e r l i n g
a r e a c o u n t r i e s a m o u n t in g t o som e $ 1 3 , 0 0 0 , 0 0 0 , 0 0 0 m e a s u re d i n
o u r m o n ey. F o r some t im e w h a t E n g la n d s e l l s w i l l be f a r
s h o r t o f w h a t s h e m u st b u y , n o r w i l l s h e h a v e s u f f i c i e n t
in co m e fr o m o t h e r s o u r c e s t o make u p t h e d i f f e r e n c e .
That
c r e a t e s a d i f f i c u l t p r o b le m f o r t h e p e o p le o f E n g la n d .
It
i s an u r g e n t p r o b le m t h a t t h e y c a n n o t d e c id e on t h e b a s i s
of a b s tra c t p r in c ip le s .
To a s s u r e t h e f l o w o f e s s e n t i a l
im p o r t s d u r in g t h e n e x t fe w y e a r s , t h e y m u s t h a v e some h e l p
fro m a b r o a d .
To r e s t o r e t h e i r w a r t im e econom y t o h ig h
s ta n d a rd s o f e f f i c i e n c y t h e y m ust in c r e a s e t h e i r e x p o r t t r a d e .
The p o l i c y t h a t E n g la n d c h o o s e s m u st h a v e t h e v e r y p r a c t i c a l
e f f e c t o f a s s u r i n g h e r p e o p le t h a t t h e y c a n e a t a n d w o r k i n
6
th e f i v e c r i t i c a l y e a r s a h e a d .
I t m u st o f f e r t h e o p p o r t u n i t y
o f e x p a n d in g E n g la n d * s e x p o r t t r a d e t o t h e l e v e l n e c e s s a r y
to m a in t a in t h e l i v i n g s t a n d a r d o f h e r p e o p le a n d t h e o p e r a
t io n o f h e r i n d u s t r i e s .
One c h o ic e i s f o r E n g la n d t o a c c e p t f u l l y t h e p ro g ra m o f
th e U n it e d N a t i o n s ,
S h e w o u ld do t h i s b y c o o p e r a t i n g p r o m p t ly
w it h t h e f a i r c u r r e n c y p r i n c i p l e s o f t h e I n t e r n a t i o n a l M one
t a r y fu n d and w it h th e f a i r t r a d e p r i n c i p l e s o f th e p ro p o se d
In t e r n a t io n a l T ra d e O r g a n iz a t io n .
T h i s w o u ld mean t h a t
E n g la n d w o u ld re m o v e h e r w a r t im e c u r r e n c y c o n t r o l s w it h o u t
w a it in g f o r t h e end. o f t h e p o s t - w a r t r a n s i t i o n p e r i o d .
Then
a s w o r ld t r a d e g ro w s E n g la n d w o u l d ts h a r e i n t h i s g r o w t h a n d
h e r i n c r e a s e d e x p o r t s w o u ld i n t im e p a y f o r h e r e s s e n t i a l
im p o r t s ,
T h is i s t h e c h o i c e t h a t t h e p e o p le o f E n g la n d w o u ld p r e f e r .
E n g la n d * s e c o n o m ic a n d p o l i t i c a l t r a d i t i o n s a n d i n t e r e s t s
a rg u e f o r h e r t o f i n d a s o l u t i o n t o h e r p r o b le m w i t h i n t h e
fra m e w o rk o f a w o r ld e co n o m y .
The d i f f i c u l t y i s t h a t t h e e f
f e c t o f e x p a n d in g w o r ld t r a d e 'o n h e r e x p o r t s may n o t come f o r
a fe w y e a r s .
I n t h e , m e a n tim e , s h e m u st f i n d some m eans f o r
c o n t in u in g h e r e s s e n t i a l im p o r t s ,
She n e e d s h e l p t o f o l l o w
t h is c o u rs e .
T he s e c o n d c h o ic e i s f o r E n g la n d t o c o n t i n u e a n d e v e n
e x te n d h e r w a r t im e c u r r e n c y a n d t r a d e c o n t r o l s .
She w o u ld
fo rm a B r i t i s h e c o n o m ic b l o c .
C o u n t r ie s t h a t w is h t o s e l l t o
E n g la n d w o u ld be c o m p e lle d t o t a k e p a y m e n t i n B r i t i s h e x p o r t s .
The c o u n t r i e s t o whom s h e ow es $ 1 3 , 0 0 0 , 0 0 0 , 0 0 0 i n b lo c k e d
s t e r l i n g w o u ld be c o m p e lle d , t o t a k e B r i t i s h g o o d s i n p a y m e n t
o f th e d e b t s .
O ur t r a d e w i t h E n g la n d w o u ld be a t r i c k l e u n d e r
su ch c o n d it io n s .
I n f a c t t h e f o r m a t io n o f a B r i t i s h e c o n o m ic
b lo c m ig h t e x c lu d e u s f r o m t r a d e w i t h m o st o f t h e B r i t i s h
E m p ire , t h e s t e r l i n g a r e a , a n d t h e c o u n t r i e s w i t h w h ic h
E n g la n d h a s e s t a b l i s h e d t r a d e a n d p a y m e n ts a g r e e m e n t s .
^ E n g la n d * s c h o i c e i s v e r y im p o r t a n t t o u s .
O ur p ro g ra m
f e r i n t e r n a t i o n a l e c o n o m ic c o o p e r a t i o n d e p e n d s on h a v in g
E n g la n d a d o p t t h e f a i r t r a d e a n d c u r r e n c y p r a c t i c e s f o r w h ic h
we s t a n d .
E n g la n d * s a c t i o n w i l l s e t t h e p a t t e r n f o r t h e
w h o le B r i t i s h E m p ire and t h e s t e r l i n g a r e a a n d f o r many
c o u n t r ie s i n E u r o p e .
T h e s e c o u n t r i e s a c c o u n t f o r n e a r l y onen a if o f th e in t e r n a t i o n a l t r a d e o f th e e n t ir e w o r ld .
The
c o n t in u a t io n o f c u r r e n c y a n d t r a d e r e s t r i c t i o n s i n E n g la n d
w i l l n e c e s s i t a t e t_____
h e i r c o n «***,*._
t in u a t io n H
in la r g e a re a
o f th e
T h e jL r p r a c t i c a l ■ e f f e c t w o u ld
i s o l a t l t h e U n it e d
o t n t c s fr o m a n e n o rm o u s t r a d i n g a r e a .
O ur p o s i t i o n i n w o r ld
t r a d e w o u ld be t h r e a t e n e d
We w o u ld h a v e t o d e f e n d o u r s e l v e s ,
wo-!l d r e t a l i a t e .
*'P
7
Tha t w o u l d be e c o n o m i c w a r fare*
P r o b a b l y we w o u l d win,
but it w o u l d be a py r r h i c victory.
W o r l d trade w o u l d be d e
stroyed, and all cou n t r i e s w o uld suffer.
If E n g l a n d and the
United States s h o u l d drift into s u c h a p o l i c y it w o u l d be a
tragedy for all.
We w o u l d find our trade d e c r e a s e d a n d ^ o u r
people u n e m p l o y e d . E n g l a n d w o u l d find h e r standard of l i ving
d e t e r i o r a t e d and h e r people i m p o v e rished.
A nd other countries
would be u n a b l e to r e c o n s t r u c t their b o m b e d a nd w r e c k e d e c o n o
mies.
The hope for i n t e r n a t i o n a l ec o n o m i c c o o p e r a t i o n m i ght
be lost forever.
The c o n s e q u e n c e s to w o r l d prosperity, and
even to w o r l d peace, w o uld be d i s a s t r o u s .
That is n o t the
kind of w o r l d our people want.
Our b a s i c goal is to e s t a b l i s h a w o r l d in w h i c h c o u n tries
can live and w o r k t o g e t h e r in peace and p r o s p e r i t y .
Inter
national e c o nomic problems can no more be s o lved b y e c o n o m i c
force than p o l i t i c a l pr o b l e m s can be solved b y war.
Out of d i s c u s s i o n and agr e e m e n t b e t w e e n the r e p r e s e n t a
tives of the U n i t e d States and of E n g l a n d came the p r o p o s e d
Financial A g r e e m e n t now before C o n g r e s s for a p p r oval.
We
found a w a y to h e l p E n g l a n d m e e t h e r p r o b l e m w i t h i n the f r a m e
work of the fair c u r r e n c y and trade p r i n c i p l e s that have b e e n
accepted b y the U n i t e d Natio n s .
Our r e p r e s e n t a t i v e s a g r e e d that subject to the appro v a l
of Congress we w o u l d ope n a line of credit of $ 3 , 7 5 0 , 0 0 0 , 0 0 0
to be u s e d b y E n g l a n d to p a y for h er m o s t e s s e n t i a l imports.
Their r e p r e s e n t a t i v e s agreed, in turn, that subject to the
approval of P a r l i a m e n t they w o u l d commit t h e m s e l v e s to remove
various wa r t i m e r e s t r i c t i o n s and d i s c r i m i n a t i o n s .
In brief, this is w h a t E n g l a n d u n d e r t a k e s
Financial Agreement:
to do u n d e r the
1.
W i t h i n a year, u n l e s s we a g ree to a t e m p o r a r y
extension, E n g l a n d w i l l make all s t e r l i n g a r i s i n g from
current trade convertible.
E n g l a n d w ill thus r e t u r n to
the free use of sterling in i n t e r n a t i o n a l trade that she
p e r m i t t e d b e fore the war. If M e x i c o and E g y p t export to
E n g l a n d they wil l be able to use the m o n e y t h e y receive
in any country.
T h a t means they c o uld c o n vert the s t e r
ling into d o l l a r s and b u y radios or r e f r i g e r a t o r s in
the U n i t e d States.
2.
W i t h i n a year, u n l e s s we agree to a t e m p o r a r y
extension, B r i t a i n w i l l d i s s o l v e the s t e r l i n g area
d o l l a r pool.
D u r i n g the war, u n d e r the d o l l a r pool,
w h e n a sterling area c o u n t r y r e c e i v e d d o l l a r s they w ere
pooled in London.
T h e s e do l l a r s could be u s e d o n l y if
8
allocated, and L o n d o n did n o t a l l o c a t e u n l e s s the goods
wanted could n ot be ob t a i n e d in a ny s t e rling area country*
A m e r i c a n p r o d u c e r s lose markets, and fast, u n d e r that s y s
tem,
U n d e r the p r o v i s i o n s of the Financial Agreement,
every c o u n t r y in the s t e rling area wil l have complete
freedom to use its d o l lars as it w i s hes.
All d o l lars that
the ste r l i n g area countries receive for t h e i r exports
could be spent in the U n i t e d States w i t h o u t o b t a i n i n g an
all o c a t i o n f r o m England.
That m e a n s India could use d o l
lars to b u y A m e r i c a n m a c h i n e r y i n s t e a d of b e i n g forced to
buy E n g l i s h mac h i n e r y .
3.
C u r r e n t exports of g o o d s and services f r o m the
U n ited States to E n g l a n d w i l l be pai d for in dollars, or
if paid in pounds, the m o n e y can be c o n v e r t e d into d o l
lars b y A m e r i c a n exporters.
T h a t means that A m e r i c a n
companies w h i c h in the past have e x p e r i e n c e d c o n s i d e r a b l e
d i f f iculty in g e t t i n g their ear n i n g s out of E n g l a n d will
now be paid in dollars.
For all p r a c t i c a l p u r poses
A m e r i c a n b u s i n e s s m e n can be just as sure of p a y m e n t for
their sales in E n g l a n d as they wer e b e fore the war,
4*
The b l o c k e d st e r l i n g b a l a n c e s will be settled
by E n g l a n d and the countries c oncerned.
A n y p a y m e n t s on
these balances, mad e n o w o r later, w ill be free for mak - •
ing pur c h a s e s in a ny country, inc l u d i n g the U n i t e d States,
That means E n g l a n d w i l l not force these countries h o l d i n g
more than $,13,000,000,000 in sterl i n g to b u y B r i t i s h i n
stead of A m e r i c a n goods.
This large debt wil l not be
used, to exclude A m e r i c a n p r o d u c t s f r o m the s t e r l i n g area,
or to put our exp o r t e r s at a d i s a d v a n t a g e in c o m p e t i t i o n
w i t h B r i t i s h exporters.
5.
E n g l a n d ’s Import controls wil l be a d m i n i s t e r e d
in a m a n n e r w h i c h does not d i s c r i m i n a t e a g a inst A m e r i c a n
products.
T h a t m e a n s E n g l a n d will n ot k eep out A m e r i c a n
cotton, tobacco, grains, fruits and nuts, or our i n d u s
trial pr o d u c t s in o r der to b u y these same goods in o t her
countries.
A n y q u a n t i t a t i v e l i m i t a t i o n that E n g l a n d
finds It n e c e s s a r y to Impose on h e r Imports will be a p
plied on an equal basis towa r d all countries.
6.
E n g l a n d w ill support the A m e r i c a n p r o p o s a l for
an I n t e r n a t i o n a l T r a d e O r g a n i z a t i o n to reduce trade b a r
riers a n d eli m i n a t e trade r e s t r ictions.
In this way,
England supports o u r p o l i c y of e x p a n d e d trade, w i t h all
countries h a v i n g a c cess to w o r l d m a r k e t s on fair terms.
E n g l a n d ’s support o f our p r o p o s a l a u g u r s wel l f or the
success of the U n i t e d N a t i o n s T r a d e C o n f e r e n c e to be
held l a t e r this year.
9
W e have a s k e d E n g l a n d to a d o p t these p r i n c i p l e s be c a u s e
they will h e l p w o r l d trade and A m e r i c a n trade.
In the long
run, these fair trade and cu r r e n c y p r a c t i c e s w ill h e l p England,
too.
W i t h e x p a n d e d w o r l d trade, B r i t i s h e x p o rters will find
better m a r k e t s .
But it w i l l take several years b e f o r e B r i t i s h
exports ar e i n c r e a s e d s u f f i c i e n t l y to m ake good h er h e a v y for
eign e x c hange losses d u r i n g the war.
In the meantime, E n g l a n d
needs credit if she is to secure the imports e s s e n t i a l to her
people and to h e r economy.
Part of the ,credit E n g l a n d n e eds she w i l l get fro m o t her
countries.
C a nada has a vital interest in s e c u r i n g B r i t i s h
agreement to these p r i n c i p l e s and she wil l h elp E n g l a n d a d
here to them.
M u c h of the c r e d i t E n g l a n d can get o n l y f r o m
us.
U n d e r the Financial A g r e ement, E n g l a n d can d r a w u p o n the
line of c r e d i t of $ 3 , 7 5 0 , 0 0 0 , 0 0 0 u n t i l 1951*
The m o n e y is to
be u s e d to p a y for h er imports and o t h e r current needs.
A ny
part of the credit not. u s e d b y then will reduce the amount
owed by Eng l a n d .
B e g i n n i n g in 1951, E n g l a n d is to r e p a y the
credit w i t h interest at 2 percent.
She wil l do this in 50
equal annual payments.
The p r i ncipal of the credit due e a c h y e a r m u s t be r e paid
without q u a l i f i c a t i o n .
U n d e r c o n d i t i o n s of severe d e p r e s s i o n
in world trade, and u n d e r o b j e c t i v e s t a ndards w r i t t e n in the
Agreement, the interest due in any g i v e n y e a r w o u l d be waived,
but payment of i n t erest w o u l d be r e s u m e d as soon as trade
recovers.
Suc h a p r o v i s i o n to take care of an e m e r g e n c y s i t
uation is c e r t a i n l y p r e f e r a b l e to f o r c i n g a default.
The g r e a t e r p art of the credit wil l be u s e d to p ay for
exports f r o m the U n i t e d States.
D i r e c t l y and i n d i r e c t l y
n e a r l y all of the m o n e y wil l u l t i m a t e l y be spent in the
United States*
The credit to E n g l a n d w ill enable h e r to
maintain h e r essential imports on a m o d e s t level. I should
like to em p h a s i z e that E n g l a n d will still have to enforce
an austere standard of c onsumption, l i t t l e d i f f e r e n t f rom
that of the w ar years.
This credit is n ot a gift.
It is a loan, a l o a n w h i c h
England is to repay.
It b e a r s interest at 2 percent, a rate
comparable to the G o v e r n m e n t ’s cost of b o r r o w i n g money.
It
is not an u n c o n d i t i o n a l c r e d i t
*•it is a credit w h i c h mus t
be used o nly to m e e t B r i t a i n ’s current p a y m e n t s and to enable
her to remove h er w a r t i m e c u r r e n c y and trade r e s t r ictions.
10
This Financial A g r e e m e n t is good b u s i n e s s for the U n i t e d
States.
I'he credit we e x t e n d m a y prove to be one of the mos t
important i nvestments we have yet m a d e in w o r l d peace and
prosperity.
No t o n l y is the $ 5 , 7 5 0 , 0 0 0 , 0 0 0 to be repaid, but
American bu s i n e s s wil l reap r i c h d i v i d e n d s t h r o u g h its access
to w o r l d m a r k e t s on a fair a n d equal basis.
The e x p a n s i o n of inter n a t i o n a l trade wil l be a g r e a t help
to this c o u n t r y in ca r r y i n g out our own p o l i c y of m a i n t a i n i n g
high levels o f p r o d u c t i o n and e mployment.
Foreign trade is an
important factor in our n a t ional economy.
I suppose all of us, at one time or another, have thought
of the g r e a t turning p o i n t s of h i s t o r y and w o n d e r e d .
Did
people know then that wha t t hey w e r e d o i n g w o u l d d e c i d e the
fate of n a t i o n s ?
We live in just s uch a critical time.
The
decisions we mak e n ow m a y shape the d e s t i n y of the w o r l d for
generations.
^e have one more chance to b u i l d a w o r l d in w h i c h c o u n
tries can liv e and w o r k t o g e t h e r in peace and. p rosperity.
We are d e t e r m i n e d that the ^nited N a t i o n s shall do e v e r y t h i n g
in their p o w e r to b u i l d s u c h a world.
We have started w i t h the p r o p o s i t i o n that if conflicts
between n a t i o n s are not to be settled a g a i n b y fire and sword,
some o t h e r w a y must be found to deal w i t h i n t e r n a t i o n a l p r o b
lems.
The c o m m o n - s e n s e w a y is to deal w i t h s u c h problems
through d i s c u s s i o n and a g r e e m e n t
—
through international
cooperation.
C o o p e r a t i o n on pol i t i c a l p r o b l e m s that affect
world s e c u r i t y is essential.
But it is' not enough.
We m u s t
provide a sound e c o n o m i c f o u n d a t i o n for peace.
We have m ade goo d pr o g r e s s on the road of i n t e r n a t i o n a l
economic c o o p e ration.
We have mad e g ood p r o g r e s s in b u i l d i n g
a sound and e x p a n s i v e e c o n o m y at home, If we c o n tinue to a p
ply ourselves, if we exercise the same i n t e l l i g e n c e a nd u n i t y
of purpose that we did d u r i n g the war, we can loo k f o r w a r d
with full f a i t h to a b r i g h t future.
0O 0
TREASURY DEPARTMENT
Washington
for m m v m belsasx,
Friday, March 29, 1946.
**•«* service
^
^-^7?
the Secretary of the treasury today announced the final subscription and
allotment figures with respect to the current offering of 7/8 percent treasury
Certificates of Indebtedness of Series D-1947. Subscriptions for amounts up
to and including #25,000 were allotted in full and amounted to #45,505,000«
Subscriptions and allotments were divided among the several Federal He*
serve Districts end the treasury as follows:
Federal Reserve
District______
total Subscrip-*
tlons Received
total Subserlp*
tlons Allotted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St« Louis
Minneapolis
Kansas City
Balias
San Francisco
treasury
# 146,564,000
2,973,812,000
81.530.000
212.240.000
70.071.000
125.520.000
411.829.000
126.814.000
74.790.000
145.490.000
88.900.000
283.212.000
1,347,000
#4,741,969,000
#
tom
¿ D o
87,107,000
1,756,610,000
48.761.000
126.952.000
42.514.000
75.121.000
247.006.000
77.473.000
46.938.000
88.932.000
53.511.000
167.768.000
821,000
#2,819,514,000
TREASURY DEPARTMENT
W a s h in g t o n
FOE II3 J E D IA T E R E L E A S E ,
F r i d a y , M a rc h 2 9 , 1 9 4 6 ,
P r e s s S e r v ic e
N o. V -2 7 9
The S e c r e t a r y o f t h e T r e a s u r y t o d a y a n n o u n c e d t h e f i n a l
s u b s c r ip t io n
o f f e r in g
and a llo t m e n t f i g u r e s
w it h r e s p e c t to th e c u r r e n t
o f 7 /8 p e rc e n t T re a su ry C e r t if ic a t e s
o f S e r i e s D -1 9 4 7 *
S u b s c r i p t i o n s f o r a m o u n ts u p t o a n d i n c l u d
in g $ 2 5 , 0 0 0 w e re a l l o t t e d
S u b s c r ip t io n s
o f In d e b t e d n e s s
i n f u l l a n d a m o u n te d t o $ 4 5 , 5 0 3 , 0 0 0 .
a n d a l l o t m e n t s w e re d i v i d e d among t h e s e v e r a l
F e d e ra l R e se rv e D is t r ic t s
an d th e T r e a s u r y a s f o llo w s :
F e d e ra l R e se rv e
D is t r ic t
T o t a l S u b s c r ip t i o n s R e c e iv e d
T o t a l S u b s c r ip t io n s A llo t t e d
B o s to n
New Y o r k
P h ila d e lp h ia
C le v e la n d
R ic h m o n d
A t la n t a
C h ic a g o
S t , L o u is
M in n e a p o lis
K an sas C it y
D a lla s
San F r a n c i s c o
T re a su ry
$
t
1 4 6 ,5 6 4 ,0 0 0
2 ,9 7 3 ,8 1 2 ,0 0 0
8 1 ,5 8 0 ,0 0 0
2 1 2 ,2 4 0 ,0 0 0
7 0 ,0 7 1 ,0 0 0
1 2 5 ,3 2 0 ,0 0 0
4 1 1 ,8 2 9 ,0 0 0
1 2 6 ,8 1 4 ,0 0 0
7 4 ,7 9 0 ,0 0 0
1 4 5 ,4 9 0 ,0 0 0
8 8 ,9 0 0 ,0 0 0
2 8 3 ,2 1 2 ,0 0 0
1 ,3 4 7 ,0 0 0
$ 4 , / 4 1 , 9 6 9 ,0 0 0
oOo
8 7 ,1 0 7 ,0 0 0
1 ,7 5 6 ,6 1 0 ,0 0 0
4 8 ,7 6 1 ,0 0 0
1 2 6 ,9 5 2 ,0 0 0
4 2 ,5 1 4 ,0 0 0
7 5 ,1 2 1 ,0 0 0
2 4 7 ,0 0 6 ,0 0 0
7 7 ,4 7 3 ,0 0 0
4 6 ,9 3 8 ,0 0 0
8 8 ,9 3 2 ,0 0 0
5 3 , 5 11,0 0 0
1 6 7 ,7 6 8 ,0 0 0
8 2 1 ,0 0 0
8 1 9 ,5 1 4 ,0 0 0
Wi
musimi n ? m œ
Wàshington
FOB M lM àM * m m xm XnsmiOtSf
Tuesday, â$ril 2, 19ii6.
Press Service
Th© Secretary of the Treasury announced last evening that the tenders for
V
/
¿ ,<
$1,300,000,000/ or thereabouts, of 92-day Treasury b ills to be dated April k and to sature
July S, 191*6» ©hlch aere offered on lîarch 29, 191*6» ©ere opened at the Federal Beeem
Banks on April 1#
The d e t a ils o f t h is issue are a s fo llo w s :
T o ta l a p p lie d f o r - $ l#86(3,39S,OOD/
T o ta l accep ted
- 1 ,3 * 1 ,7 6 3 ,0 0 0 ^ (In c lu d e s 1 3 1 ,0 6 1 ,0 0 e n te re d on a fixed-price
^
b a s is a t
and accep ted In f a l l )
A verage p ric e
- 99*9d M % ui.v*2eafc ra te o f d isc o u n t c if r a r , 0 .3 7 $ ^ p e r eanaa
99*90$
Bange o f accep ted co m p e titiv e b id e t
H i^ i
Leer
- 99*903 E q u iv a le n t rat© o f d isc o u n t Ö.360Ü p e r annua
- 9 9 .9 0 k ''
*
«
«
»
appro*. Q*3?6$ per annum
(6? percent of the assount bid for at the lev prtee was accepted)
Federal Baser?©
District
Total
Applied for
Total
Accepted
Boston
lev fork
Biiladelphta
Cleveland
1
»
Atlanta
Chicago
St» louis
!linneapolis
Kansas City
Balias
San Francisco
ll,505»ooo
l,U73,92Ii,0OO
16,077,000
6,319*000
5*820,0®
3,096,000
273*050,000
16,075,0®
1,650,0®
9,632,0®
2,635,000
M á s «
m
11,863,396.000
9,525,000
1,02t, 7 5 9,0®
,000
6,319,000
5,160,000
3,096,000
183,2t0,000
l5,25o,o®
1,650,000
9,632,030
2,635,000
33,005,000
$1,311,763,000
T R E ASURY D E P A R T M E N T
V/ashington
Press Se r v i c e
No. V - 2 8 0
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d l a s t evening that the
tenders for $1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 2 - d a y T r e a s u r y
bills to be d a ted A p r i l 4 a n d to matu r e July 5, 1946, w h i c h were
offered on M a r c h 29, 1946, w e r e o p e n e d at the F e d e r a l R e s e r v e Banks
on April 1.
The details
of this
issue are as follows:
Total a p p l i e d f or - $ 1 , 8 6 3 , 3 9 8 , 0 0 0
Total a c c e p t e d
1 , 3 1 1 , 7 6 8 , 0 0 0 (includes $ 3 4 , 0 6 1 , 0 0 0 ent e r e d on a f i x e d - p r i c e basis at
99.905 a nd a c c e p t e d in full)
9 9 . 9 0 4 / E q u i v a l e n t rat e of dis c o u n t
Av e r a g e price
approx. 0 . 3 7 5 % per a n n u m
R a n g e of a c c e p t e d c o m p e t i t i v e bids:
9 9 . 9 0 8 E q u i v a l e n t rat e of dis c o u n t
0 . 3 6 0 $ per a n n u m
99.904 E q u i v a l e n t rate of di s c o u n t
approx. 0*376$! per a n n u m
Hig h
Low
(67 p e r cent of the a m o u n t bi d f or at th e low price was a c c epted)
Federal R e s e r v e
District
Total
A p p l i e d for
Total
Accepted
Boston
New Y ork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$
9,525,000
1,024,759,000
12,447,000
6,319,000
5,160,000
3,096,000
1 1 ,505,000
"1,473,924,000
16 , 077,000
6,319,000
5,820,000
3,096,000
273 , 050,000
TOTAL
,
16 , 075,000
188 240,000
1 5 , 250,000
1,650,000
9,682,000
2,635,000
43,565,000
1,650,000
9,682,000
2,635,000
35,005,000
$1,863,398,000
1 3 1 1 768,000
0O0
, ,
u n d er th e C f l w t s s i » o n N a r c o tic D ru gs th e
fo r e m o s t t a c k w i l l b e t o l i m i t th e p r o d u c tio n o f
o p iu m t o t h e m e d i c a l n e e d s o f t h e w o r l d a n d t o
see th a t no ex cess
is a v a i l a b l e f o r t h e i l l i c i t
tr a ffic k e r *
T h e p r o g r e s s a lr e a d y m ade sh ow s g r e a t
im p r o v e m e n t i n h u m an r e l a t i o n s w h ic h m u s t
n e c e s s a r ily p re c e d e a b e tte r m e n t in r e la tio n s
b e tw e e n n a tio n s *
"WllHple
w a r fa r e .
G e n e r a l M a c A r t h u r will, i n d u e c o u r s e ,
ta k e c a r e o f th o s e r e s p o n s ib le f o r th a t v io la t io n
o f in te r n a tio n a l c o n v e n tio n s , b e c a u s e J a p a n
r e p o r te d t o th e L e a g u e o f N a tio n s t h a t n o h e r o in
.V
-l:
1 - ’:
^
b a d b e e n m a n u fa c tu r e d d u r in g th o s e y e a r s .
T h e B r i t i s h , D u tc h , a n d F r e n c h a n n o u n ced
t h e ir in te n tio n n o t to op en th e ir G overn m en t sh o p s
w h ic h s o l d s m o k in g o p iu m i n H o n g K o n g , S i n g a p o r e ,
B o r n e o , T h e N e th e r la n d s I n d ie s , a n d In d o -C h in a .
T h e im p o r ta n c e o f t h i s a n n o u n ce m e n t h a s b e e n
g e n e r a lly o v e r lo o k e d ,
i t w ill a t la s t g iv e
f r e e d o m t o t h e l e g i o n s o f o p iu m s l a v e s .
A s a n In s ta n c e o f w h at in te r n a tio n a l co o p era
t i o n h a s a c c o m p lis h e d In s u p p r e s s in g th e a b u s e o f
n a r c o t ic d r u g s , w e f in d e lo q u e n t e v id e n c e in th e
f a c t t h a t d u r in g w o r ld W ar I w e h a d a v e r y h ig h
r a t e o f r e je c t io n s f o r d r u g a d d ic t io n o f o n e in
e v e r y 1 ,0 0 0 o f t h o s e p r o c e s s e d b y th e A rm y , w h e r e a s
i n W o r ld W ar I I t h e r a t e o f r e j e c t i o n s f o r d r u g
a d d ic t io n in o v e r tw e lv e m i l l i o n m en p r o c e s s e d b y
t h e A r a y w a s o n e i n e v e r y 1 0 ,0 0 0 .
for t h e s e bodies. I n Washington and during the war
the I n t e r n a t i o n a l opium controls e v e n i n A x i s
countries, except Japan, functioned w i t h l i t t l e
Interruption.
I t w a s o n ly n a t u r a l t h a t t h e A s s e m b ly , w h ic h
m e t in L o n d o n r e c e n t l y , s h o u ld a u t h o r iz e t h e s e t t i n g
u p u n d e r t h e E c o n o m ic a n d S o c i a l c o u n c i l o f a
C o m m is s io n o n N a r c o t i c D r u g s c o m p o s e d o f f i f t e e n
n a t io n s w h ic h I n c lu d e p r o d u c e r s , m a n u fa c tu r e r s ,
co n su m ers, an d v ic tim c o u n tr ie s .
U n d e r t h e E c o n o m ic
a n d S o c ia l C o u n c il th e r e w i l l b e m o n e ta r y , la b o r ,
h e a l t h , e c o n o m ic , s o c i a l , h u m a n ita r ia n , a n d o t h e r
c o m m itt e e s I n o r d e r t o im p r o v e e c o n o m ic a n d s o c i a l
c o n d itio n s th r o u g h o u t th e w o r ld .
I n t h i s p r o b le m , w e h a v e h a d t h e c o m p le te
c o o p e r a tio n o f a l l c o u n t r ie s , e x c e p t J a p a n a n d on e
o r tw o o t h e r s .
Jap an w as on e o f th e w o rst v io la to r s .
F o r in s ta n c e , in K o re a on e f a c t o r y p ro d u ced s u f f i
c i e n t a m o u n ts o f h e r o in , a h ig h t e n s io n d r u g , d u r in g
18 8 9 an d 19 3 9 to m e e t th e m e d ic a l n e e d s o f th e
w o r ld , a n d th e s e n a r c o t ic s w e r e s h ip p e d t o i& n c h u r ia
w h e re u n q u e s tio n a b ly t h e y w e re u se d a s a w eap o n o f
The p re ss Is f u ll o f r e p o r ts sh o u t th e
a c t i v i t i e s o f th e S e c u r ity C o u n c il o f th e u n ite d
N a tio n s O r g a n iz a tio n .
L it t le a tte n tio n h as so
f a r b e e n p a i d t o t h e im p o r t a n c e o f t h e E c o n o m ic
an d S o c ia l C o u n c il.
U n d e r th e o ld L e a g u e o f N a tio n s t h e r e w a s o n ly
on e C o u n c il.
T h e p o l i t i c a l , s o c i a l , a n d e c o n o m ic
c o m m itte e s a l l s e n t t h e i r r e p o r t s t o t h e C o u n c il
w h ic h , i n t u r n , m ad e I t s r e c o m m e n d a tio n t o t h e
A s s e m b ly .
U n d er th e new O r g a n iz a tio n , an d w is e ly
s o , t h e S e c u r i t y C o u n c i l , w h ic h I s t h e a l l im p o r ta n t
o r g a n , w i l l n o t b e b u r d e n e d w i t h e c o n o m ic a n d s o c i a l
m a tte r s .
I w is h t o s t r e s s th e g r e a t f a c t o r t h a t '
t h e E c o n o m ic a n d S o c i a l C o u n c i l a n d t h e o r g a n s
o p e r a tin g u n d e r i t w i l l p la y in th e b e tte r m e n t o f
hum an r e l a t i o n s .
You w ill w onder J u st w hat th is
h a s to do w ith n a r c o tic d r a g s .
W hen t h e g u n s w e n t o f f I n 1 9 3 9 t h e L e a g u e o f
N a tio n s h a d J u s t a b o u t c o lla p s e d , e x c e p t f o r th e
O p iu m A d v i s o r y C o m m it t e e a n d t h e tw o i n t e r n a t i o n a l
c o n t r o l b o d ie s w h ic h w e r e s e m i-a u to n o m o u s a n d
fu n c tio n e d u n d e r L e a g u e d ir e c t io n ,
f e fo u n d s h e lt e r
TREASURY DEPARTMENT
W a s h in g to n
POR R ELEA SE MORNING- NEW SPAPERS,
W e d n e sd a y , A p r i l 3» 1 9 4 6 ______
P r ess S e r vice
Nom V - 2 8 1
(T h e f o l l o w i n g a d d r e s s b y H a r r y J . A n s l i n g e r ,
C o m m is s io n e r o f N a r c o t i c s , i s s c h e d u le d f o r
d e l i v e r y b e f o r e t h e d i n n e r m e e t in g o f t h e
D i s t r i c t o f C o lu m b ia B a r A s s o c i a t i o n , a t t h e
H o t e l S t a t l e r , a t 7 :3 -0 P * n u , E .S * T .., T u e s d a y ,
A p r i l 2, 1 9 4 6 .)
-The p r e s s i s f u l l o f r e p o r t s a b o u t t h e a c t i v i t i e s o f
th e S e c u r i t y C o u n c i l o f t h e U n it e d N a t io n s O r g a n iz a t io n *
l i t t l e a t t e n t i o n h a s s o f a r b e e n p a i d t o t h e im p o r t a n c e
o f t h e E c o n o m ic a n d S o c i a l C o u n c i l ,
U n d e r t h e o l d le a g u e o f N a t io n s t h e r e w as o n l y one
C o u n c il.
The p o l i t i c a l , s o c i a l , a n d e c o n o m ic c o m m it te e s
a l l s e n t t h e i r r e p o r t s t o t h e C o u n c i l w h ic h , i n t u r n ,
made i t s r e c o m m e n d a tio n t o t h e A s s e m b ly *
U n d e r t h e new
O r g a n iz a t io n , a n d w i s e l y s o , t h e S e c u r i t y C o u n c i l , w h ic h
i s t h e a l l im p o r t a n t o r g a n , w i l l n o t be b u rd e n e d w i t h ■
e c o n o m ic a n d s o c i a l m a t t e r s ,
I w is h t o s t r e s s t h e g r e a t
f a c t o r t h a t t h e E c o n o m ic a n d S o c i a l C o u n c i l a n d t h e o r g a n s
o p e r a t in g u n d e r i t w i l l p l a y i n t h e b e t t e r m e n t o f hum an
r e la t io n s *
Y o u w i l l w o n d e r j u s t w h a t t h i s h a s t o do w i t h
n a r c o t i c d ru g s *
When t h e g u n s w e n t o f f i n 1 9 3 9 t h e L e a g u e o f N a t io n s
had j u s t a b o u t c o l l a p s e d , e x c e p t f o r t h e O pium A d v i s o r y
C o m m itte e a n d t h e tw o i n t e r n a t i o n a l c o n t r o l b o d ie s w h ic h
w e re s e m i-a u t o n o m o u s a n d f u n c t i o n e d u n d e r L e a g u e d i r e c t i o n
We f o u n d s h e l t e r f o r t h e s e b o d ie s i n W a s h in g t o n a n d d u rin g
th e w a r t h e i n t e r n a t i o n a l o p iu m c o n t r o l s e v e n i n A x i s
c o u n t r ie s , e x c e p t Ja p a n , f u n c t io n e d w it h l i t t l e i n t e r r u p
t io n .
I t w as o n ly n a t u r a l t h a t t h e A s s e m b ly , w h ic h met i n
London r e c e n t l y , s h o u ld a u t h o r i z e t h e s e t t i n g up u n d e r
th e E c o n o m ic a n d S o c i a l / C o u n c i l o f a C o m m is s io n on N a r c o t i
D ru g s co m p o se d o f f i f t e e n n a t i o n s w h ic h i n c l u d e p r o d u c e r s ,
m a n u fa c tu re rs , c o n su m e rs, and v ic t im c o u n t r ie s .
U nder th e
E c o n o m ic a n d S o c i a l C o u n c i l t h e r e w i l l be m o n e t a r y , l a b o r ,
h e a l t h , e c o n o m ic , s o c i a l , h u m a n it a r ia n , a n d o t h e r com
m it t e e s i n o r d e r to im p ro v e e c o n o m ic a n d s o c i a l c o n d i t i o n s
t h r o u g h o u t t h e w o r ld *
2
In this problem, we have had the c o m p l e t e c o o p e r a t i o n
of all countries, except Japan a n d one or two others.
Japan
was one of the w o r s t violators.
Fo r instance, in K o r e a one
f a c t o r y p r o d u c e d s u f f i c i e n t a m o u n t s of heroin, a h i g h tension
drug, during 1938 a n d 1939 to mee t the m e d i c a l n e e d s of the
w o r l d , - a n d these n a r c o t i c s were s h i p p e d to M a n c l m r l a where
u n q u e s t i o n a b l y they wer e u s e d as a w e a p o n of wa r f a r e #
General
M a c A r t h u r will, in due course, take care of those r e s p o n s i b l e
for that v i o l a t i o n of i n t e r n a t i o n a l conventions, b e c ause
Japan r e p o r t e d to the l e a g u e of N a t i o n s t h a t no hero i n had
been m a n u f a c t u r e d during those years.
The British, Dutch, a nd F r e n c h a n n o u n c e d t h eir intention
not to open t h eir G o v e r n m e n t shops w h i c h sol d s m o k i n g o p i u m
in Hon g Kong, Singapore, Borneo, The N e t h e r l a n d s Indies, a nd
Indo-China.
The imp o r t a n c e of this a n n o u n c e m e n t has been
g e n e r a l l y overlooked.
It w i l l at las t g i v e f r e e d o m to the
legions of o p i u m slaves.
As an instance of w h a t i n t e r n a t i o n a l c o o p e r a t i o n has
a c c o m p l i s h e d in s u p p r e s s i n g the a b u s e of n a r c o t i c drugs, we
find e l o quent evidence in the f a c t that d u r i n g 'World W a r I
we had a v e r y h i g h rat e of r e j e c t i o n s fo r drug a d d i c t i o n of
one in every 1 , 0 0 0 of those p r o c e s s e d by the Army, w h e r e a s
in W o r l d W a r II the r a t e of r e j e c t i o n s for drug a d d i c t i o n
in over twelve mi l l i o n men p r o c e s s e d by the A r m y was one in
every 10,000.
U n d e r the C o m m i s s i o n on N a r c o t i c D r ugs the f o r e m o s t
t ask w i l l be to l i m i t the p r o d u c t i o n of o p i u m to the m e d i c a l
needs of the w o r l d a n d to see t h a t no excess is a v a i l a b l e f or
the illicit trafficker,
The p r o g r e s s a l r e a d y made shows g r e a t i m p r o v e m e n t in
human r e l a t i o n s w h i c h m u s t n e c e s s a r i l y p r e c e d e a b e t t e r m e n t
in r e l a t i o n s b e t ween nations.
-bOo*-
we could extend to England a credit of $3s3^4~i>illion and
enhance the possibility of achieving a prosperous and
peaceful world, or we could refuse to lend to England, and
lose, perhaps permanently, our chances of attaining that
objective.
In the agreement which they prepared they chose
the first alternative.
But they went further:
they obtained
specific commitments that the major obstacles to our economic
program for peace and prosperity would be done away with.
That is the fifth , and final, fact.
The problem is one that touches the future of the
people of the United States and should be considered by
all thoughtful men in that light.
B r i t i s h i m p o r t c o n t r o l s w i l l be a d m i n i s t e r e d i n s u c h a
way that our producers and traders wi ll not be discriminated
against*
E n g l a n d h a s c o n s e n t e d to s u p p o r t o u r p r o p o s a l s f o r a n
i n t e r n a t i o n a l trade o r g a n i s a t i o n for the r e d u c t i o n of trade
b a r r i e r s a n d the e l i m i n a t i o n o f t r a d e r e s t r i c t i o n s .
The huge sterling balances which were built up during
t h e w a r w i l l be s e t t l e d , i n p a r t b y a n i m m e d i a t e p a y m e n t ,
and in part by payments over a period of years. Any releases
o n t h e s e b a l a n c e s w i l l be f r e e l y c o n v e r t i b l e , a n d c a n be
used for purchases in the Un ited States or in any other
country.
B y o b t a i n i n g these co m m i t m e n t s , we ha ve a c h i e v e d the
cooperation of England, and we have made that cooperation
specific.
E n g l a n d w i l l c o n t i n u e to p r o v i d e a m a r k e t for
world goods; her trade will be on a multilateral, instead
of a bilateral basis; her quantitative trade controls will
not discriminate against American producers.
W h e n our negotiators entered into discussions with
the B r i t i s h , they studied the four facts I ha ve p r e s e n t e d
to y o u . T h e i r c o n c l u s i o n w a s t h a t w e h a d t w o a l t e r n a t i v e s :
- 9 E n g l a n d t i m e to g e t b a c k o n h e r f e e t . W e a r e p u t t i n g E n g l a n d
i n a p o s i t i o n w h e r e she is a b l e to c o o p e r a t e w i t h us. T h a t
is one side o f the Ag re eme nt .
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T h e o t h e r s i d e is t h a t w e a r e i n s i s t i n g u p o n ! t h a t
f w r \
cooperation, and are specifying w h a t form that cooperation
i\
is to take.
i
W e fh Va-\\v.e'■/o b t a i n e d E n g l ...a n d ’s a g r e e m e n t to .m_a kje \ a\l‘l
sterling arising from current trade freely convertible
•;
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within one year. Practically every country in the world
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ex po rts mo re to E n g l a n d th an it imports f r o m En gl and .
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ft
T h i s a g r e e m e n t e n s u r e s t h e a b i l i t y o f e a c h c o u n t r y t o uise
i t s i n c o m e f r o m t h o s e e x p o r t s f o r p u r c h a s e s iri t h e U n i t e d
( .I
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States, or an y other area.
I
E n g l a n d h a s a g r e e d to d i s s o l v e the d o l l a r p o o l w i t h i n
J '■ J \
one year. The money sterling area countries get^from their
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e x p o r t s to the U n i t e d S t a t e s c a n be s p e n t a t the w i l l o f
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t h e h o l d e r , a n d w i l l n o t h a v e t o be s a c r i f i c e d t p * c e n t r a l
distributing authority.
/
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* *1
E n g l a n d a g r e e s , a l s o , t h a t t h e s t e r l i n g e a r n i n g s off
Amer ica n exporters and producers abroad can be conver ed
freely into dollars.
- 8 -
i)
r e s t r i c t i o n re q u i r e s the c o o p e r a t i o n of E n g l a n d , the ot h e r
British countries, and the sterling area* Fourth: England,
w h i c h w i l l set the p a t t e r n for these ot he r ar ea s, is faced
? • *> I
■
w i t h the a l t e r n a t i v e of b o r r o w i n g i n s t e r l i n g , or b o r r o w i n g
in ao ll a rs. B o r r o w i n g in st e r l i n g c a nn ot be done w i t h o u t
r e s o r t i n g to t h e v e r y t y p e o f r e s t r i c t i o n s w e a r e s e e k i n g
to e l i m i n a t e *
T h o s e a r e the f o u r s i m p l e f a c t s w h i c h o u r n e g o t i a t o r s
ha d in mi n d wh en they w o rk ed out the Fi na nci al A g r e eme nt
with England.
N o w , I w a n t to t u r n y o u r a t t e n t i o n to the
fifth and last fact*
Fact n u mb er five is that the A g r e e
ment, which our negotiators worked out in less than 100
d a y s a f t e r the ¿Lose o f a l o n g an d d i s r u p t i v e w a r , a c c o m p l i s h e s
e v e r y o n e o f the o b j e c t i v e s n e c e s s a r y t o l a y i n g a f o u n d a t i o n
f o r the k i n d of w o r l d w e ar e t r y i n g to build. L e t us l o o k
at the p r o v i s i o n s of the A g r e e m e n t .
The Agreement calls for a loan — not a gift — of about
th re e-q ua rt ers of the amount the B r i t i s h es ti mat e they w i l l
n e e d b e f o r e r e c o n v e r s i o n is comp let e. W e are a s k i n g t h a t
that l o a n be repaid, and that i n t e r e s t be pa id e x c e p t in a
y e a r w h e n w o r l d t r ad e is so b a d and B r i t i s h e x p o r t s are so
lo w that the B r i t i s h ma r k e t for our exports and the exports
of ot he r c o u n t r i e s is s e r i o u s l y e n d a nge re d. W e are g i v i n g
fundamental problem, wh ic h is the Brit ish shortage of dollars
a n d o t h e r c o n v e r t i b l e c u r r e n c i e s * S t e r l i n g w i l l c o n t i n u e to
pile up in blocked accounts, instead of being made con
v e r t i b l e ! m u l t i l a t e r a l c l e a r i n g w i l l b e g i v e n .a b o d y b l o w *
A m e r i c a n d o l l a r s w i l l still be scarce, and A m e r i c a n p r o d u c t s
w i l l t h e r e f o r e be d i s c r i m i n a t e d a g a i n s t . D o l l a r s p a i d to
s t e r l i n g a r e a e x p o r t e r s w i l l h a v e t o b e t u r n e d o v e r to the
s t e r l i n g a r e a d o l l a r po ol . E n g l a n d w i l l be f o r c e d to e n t e r
into a vicious discriminatory trade war, characterized by
subsidies, exchange controls, and bilateral agreements.
England w i l l leave the B r e t t o n W o o d s organizations.
England has no other alternative* She must borrow in
sterling or in dollars. Borrowing in sterling means belt
t i g h t e n i n g , a n d it m e a n s a r e p u d i a t i o n o f the p o l i c i e s w e
ar e p r o m o t i n g . E n g l a n d c a n n o t c o o p e r a t e w i t h us u n l e s s we
render her substantial assistance.
four.
That is fact nu m b e r
B e f o r e pr oc eed in g further, let me re vi ew the four
steps I have already outlined. First: we are striving
to create a prosperous, pe ac efu l world. Second: wo rl d
trade c a n n o t be b u i l t o n a b a s i s o f b i l a t e r a l i s m , d i s c r i m i n a
tion, and restriction. Third: creating a multilateral
world trade system w i t h a minimum of discrimination and
- 6 -
she w i l l e a r n i n the p o s t w a r t r a n s i t i o n pe ri od. These
s o u r c e s o f i n c o m e w i l l n o t c o n t i n u e to be so d e f i c i e n t
as t h e y are at p r e s e n t , b u t th ey c a n n o t be m a d e up i n a
short time. Until they can be made up, the B r i t i s h people
m u s t r e c e i v e a s s i s t a n c e , o r s t a r v e . T h e y a r e n o t g o i n g to
s t a r v e , b e c a u s e E n g l a n d is g o i n g to b o r r o w , f r o m one so ur ce
if not from another. B u t the w a y in w h i c h this borrowing
is done is a m a t t e r w h i c h c o n c e r n s us, be ca use one me t h o d
w i l l l e a d to B r i t i s h c o o p e r a t i o n w i t h our p r o g r a m an d the
o t h e r m e t h o d w i l l l e a d to B r i t i s h r e p u d i a t i o n o f o u r
policies.
I f w e d o n o t l e n d m o n e y to E n g l a n d , s h e w i l l b e f o r c e d
to d o two th in gs: to re d u c e the B r i t i s h s t a n d a r d o f li vi ng,
w h i c h Is a l r e a d y l o w e r than i n 19 38 , and to b o r r o w f r o m
w i t h i n the sterling area.
Bo t h of these measures would be disastrous.
If England
c u t s the s t a n d a r d o f l i v i n g b y i m p o r t i n g l e s s , o t h e r c o u n t r i e s
w i l l sell less, and w i l l be able to b u y less from us and from
the w o r l d . W o r l d t r a d e w i l l s u f f e r . A n d if E n g l a n d b o r r o w s
f r o m c o u n t r i e s w i t h i n t h e s t e r l i n g a r e a , s h e w i l l be f o r c e d
to m a i n t a i n a n d e v e n t o I n t e n s i f y a l l o f t h e t r a d e a n d
exchange controls de ve lop ed d u r i n g the war. This is because
b o r r o w i n g f r o m s t e r l i n g a r e a c o u n t r i e s w i l l n o t solve the
-
5
-
B r i t a i n ’s i n t e r n a t i o n a l e c o n o m i c p o l i c y , E n g l a n d i s t h e
k e y s t o n e o f the B r i t i s h E m p i r e a n d the st er lin g ar ea — and
t h e s e a r e a s a c c o u n t f o r 4 0 p e r c e n t o f t h e w o r l d ’s t r a d e ^ \
Th e c o u n t r y w h i c h is the w o r l d ’s b e s t m a r k e t * w h i c h
occupies a strategic p o si tio n in the mu lt ila te ra l trading
p a t t e r n of the wo rl d* and w h i c h ex er ts an o v e r p o w e r i n g
i n f l u e n c e o n the c o m m e r c i a l a n d f i n a n c i a l p r a c t i c e s of the
E m p i r e a n d the s t e r l i n g ar ea , m u s t n o t be o m i t t e d f r o m our
plans to es ta bli sh an orderly and stable w o r l d e c o n o m y .
That is fact number three.
F a c t n u m b e r four is that E n g l a n d w i l l find i t impossible
to c o o p e r a t e w i t h us n o w u n l e s s she r e c e i v e s f i n a n c i a l
a s s i s t a n c e f r o m o u t s i d e the s t e r l i n g area. The B r i t i s h
economy has be en distorted by the disruptions of war.
B r i t i s h e x p o r t s are l e s s t h a n h a l f the p r e w a r l e v e l ; oneq u a r t e r of the B r i t i s h M e r c h a n t M a r i n e h a s b e e n lost; mo re
than ha l f of her normal net income from foreign investments
h a s b e e n s a c r i f i c e d t o p a y f o r the w a r . T h e s e a r e t h e
t h i n g s b y w h i c h E n g l a n d l i v e s . T h e y ar e the f o u n d a t i o n of
Br it ish prosperity, which means that they are the foundation
of the great B r i t i s h m a r k e t and of the st ab ili ty and c o n
v e r t i b i l i t y of st er lin g.
A n d n o w they are so de p l e t e d that
Britain cannot escape paying out about $5 billion more than
%
- 4 the p o u n d s t e r l i n g is the m o s t i m p o r t a n t c u r r e n c y in the
international financial world. If sterling is freely
• ■ '
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co n v e r t i b l e , ah that it c a n be u s e d for p a y m e n t s b y an y
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c o u n t r y to apyj c o u n t r y , then, o u r o b j e c t i v e s c a n b e r e a l i z e d .
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I f it is n o t c o n v e r t i b l e , a w o r l d - w i d e s y s t e m of m u l t i l a t e r a l
* ■
!
trade w i ll be impossible. For example, one-half of our
e x p o r t s ^ g ^ toj c o u n t r i e s w h i c h b u y m o r e f r o m u s t h a n t h e y
sell to os, w h i l e they sell m o r e to E n g l a n d than they b u y
^rom/t^land.
Maintaining our exports to these countries
d e p e n d s jn t w o t h i n g s ;
o n t h e i r a b i l i t y to s e l l to E n g l a n d ,
¿ n d o n t h e i r a b i l i t y to u s e t h e s t e r l i n g t h e y a c q u i r e i n
./
/.
n
this wajpto pay us for our goods. Our trade w i t h Canada,
/ i t
i I yt^e othdr British Dominions, Latin imerica, and agricultural
|
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j Europe Is dependent on this type of three-cornered trade,
i
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/j & n d i n e v e r y c a s e E n g l a n d i s t h e m o s t i m p o r t a n t t h i r d p a r t y
/
lh the transaction. There is still a third r e as on w h y
England*s cooperation is necessary: England exerts such
a do mi nan t influence on the economies of m a n y other countries
t h at r e s t r i c t i o n s a n d c o n t r o l s i n E n g l a n d m u s t l e a d to
restrictions and controls in those other countries. The
countries which trade with England and carry on their
trade in s t e r l i n g m u s t be a f f e c t e d b y e v e r y ch an ge i n
v i c i o u s c y c l e o f c o n t r o l s a n d c o u n t e r - c o n t r o l s l e a d s to a
disastrous curtailment of world trade and national prosperity.
We have built up tremendous export industries which through
t h e i r p r o d u c t i v e e f f i c i e n c y ar e a b l e to c o m p e t e s u c c e s s f u l l y
in world markets, but even the mo st efficient industry in
the c o u n t r y ca nn ot comp ete a g a i n s t the red tape and d i s
crimination o f foreign controls, American prosperity demands
b r o a d i n t e r n a t i o n a l m a r k e t s and stable e x c h ang es , and so
d o e s t h e p r o s p e r i t y o f t h e o t h e r c o u n t r i e s o f the w o r l d .
T h a t is fa ct n u m b e r two. Th at is w h y the B r a t t o n W o o d s
o r g a n i s a t i o n s a n d the I n t e r n a t i o n a l Tr ad e O r g a n i z a t i o n
were conceived:
to cr ea te, as soon as p o s s i b l e , the
s t a b i l i t y o f e x c h a n g e s and h i g h l e v e l s o f tr a d e o n w h i c h
world prosperity depends.
Fact number three is that no pl an for a prosperous
multilateral world with stable convertible exchanges can
h o p e to s u c c e e d u n l e s s it i n c l u d e s G r e a t B r i t a i n .
England
i s t h e b i g g e s t b u y e r o f t h e w o r l d ’s g o o d s . S h e n o r m a l l y
takes a full fi ft h of the ex po rts o f the ot h e r co un tri es
of the wo rl d. She is our best customer, and the be st
c u s t o m e r o f a score of o t h e r co un tri es . T h a t is one
r e a s o n w h y E n g l a n d ’s c o o p e r a t i o n i s e s s e n t i a l to o u r
objective.
T h e s e c o n d r e a s o n is that, n e x t to the d o l l a r ,
-
2
-
F a c t n u m b e r one is that the U n i t e d S t a t e s is firmly
c o m m i t t e d to a p o l i c y of p r o m o t i n g a h i g h l e v e l o f trade
t h r o u g h o u t the w o r l d . W e ha ve l e a r n e d th at a p r o s p e r o u s
w o r l d trade is v i t a l to our o w n pe a c e and p r o s p e r i t y .
We
are pr om oti ng every reasonable po li cy that gi ve s some promise
of ra i s i n g i n t e r n a t i o n a l trade to h i g h l e v e l s a n d k e e p i n g
it there. We have laid the f o u n d a t i o n for this type of
wo rl d through our support of the International Monetary Fund
a n d I n t e r n a t i o n a l B a n k . W e ha ve p r o p o s e d the c r e a t i o n of
an International Trade Organization. We have assisted
f o r e i g n c o u n t r i e s to d e v e l o p th e i r p o s t w a r i m p o r t p r o g r a m s
t h r o u g h the e x p a n d e d e f f o r t s o f the E x p o r t - I m p o r t Bank.
We are g i v i n g our s u p p o r t to the a t t a i n m e n t o f i n te rna ti on al
political and economic harmony through the United Nations
O r g a n i z a t i o n . B y e v e r y p r a c t i c a l m e a n s , w e ar e s e e k i n g to
p r o m o t e the p r o s p e r i t y o f a l l n a t i o n s a s a s a f e g u a r d t o o u r
own well-being. That is fact number one.
F a c t n u m b e r two is that these o b j e c t i v e s w h i c h w e have
f
set f o r ourselves c a n n e v e r b e a c h i e v e d i n a w o r l d b e s e t
with the burden o f extreme discriminatory controls over
international trade and foreign exchange transactions.
th e 1 9 3 0 fs t a u g h t u s a n y t h i n g , t h e y t a u g h t t h a t s e v e r e
If
r e s t ric ti ve c o n t r o l s b r e e d c o u n t e r - c o n t r o l s , and that the
The Anglo-American Financial Agreement
I propose to talk to you tonight about the Anglo-American
Financial Agreement.
Unfortunately, there seems to be a tendency
to look upon important national issues as extremely complex
and Incomprehensible.
You have all doubtless heard on more
than one occasion that i t is the lawyers who make them so.
Under those circumstances — and especially just after you
have filed your income tax returns — I should suppose that
the last person you would look to for a simple direct state
ment on any issue would be a Treasury lawyer.
In spite of
this handicap, I am going to try to show how comprehensible
the Financial Agreement really is.
I am going to present
just five facts concerning the Agreement.
I propose to lay
j
before you
the line of reasoning
which led the American
j
. ¡¡¡gJ|||S||p
negotiators to arrive at the terms which are embodied in
the Agreement.
And I ask you then to consider whether, in
light of \these facts, any alternative course of action
available to us could do as much as the Financial Agreement
does toward ensuring the attainment of our national objectives.
.V
I
II
21 i
For Release Morning Newspapers,
Wednesday, April 3,1946
P
K - * ft
iuo.
V
/
jv
( The follov/ing address by $ a r r y J w ln s lin g er, Commissioner
of N arcotics, i s scheduled for d elivery before the dinner
meeting of the D i s t r i c t o f Columbia Bar Association, at the
* 7^<►
Hotel S t a t l e r , a t y ' o ' c l o c k p.m. Eastern Standard Time, Tuesday
April 2 , 1946)
\
TREASURY DEPARTMENT
Washington
é
For R e l ease M o r n i n g N e w s p a p e r s
Wednesday, A p ril 5, 1946_______
Press Service
No, V-282
(The fol l o w i n g address b y J o s e p h .J, O ’Connell,
G e n eral Counsel of the T r e a s u r y D e p a r tment, is
scheduled for d e l i v e r y b e fore the d i n n e r m e e t
ing of the D i s t r i c t of C o l umbia B a r Association,
at the Hotel Statler, at 7:30 O ’clock, P.M-, 4
E.S.T., Tuesday, April 2, 1946.)
I p r o pose to talk to y o u to n i g h t about the A n g l o - A m e r i c a n
Financial Agr e e m e n t .
Unf o r t u n a t e l y , there seems to be a t e n
dency to loo k u p o n important n a t i o n a l issues as e x t r e m e l y c o m
plex and i n c o m p r e h e n s i b l e • Y o u have all d o u b t l e s s h e a r d on
more t h a n one o c c a s i o n that it is the lawyers who make t h e m so.
Under those c i r c u m s t a n c e s - and e s p e c i a l l y just a f t e r y o u have
filled y o u r income tax returns - I should suppose that the last
person you w o u l d look to for a simple direct statement on any
issue w o uld b e a T r e a s u r y lawyer.
In spite of this handicap,
I am going to try to show how c o m p r e h e n s i b l e the Financial
Agreement r e a l l y is.
I am going to pr e s e n t just five facts
concerning the A g r e ement.
I propose to lay before y o u the
line of r e a s o n i n g w h i c h led the A m e r i c a n n e g o t i a t o r s to a r
rive at the terms w h i c h a re emb o d i e d in the A g r e e m e n t .
And
I ask yo u then to c o n s i d e r whether, in the light of these
facts, any a l t e r n a t i v e course of a c t i o n a v a i l a b l e to us
could do as m u c h as the Financial A g r e e m e n t does toward e n
suring the a t t a i n m e n t of our n a t i o n a l objectives.
Fact n u m b e r one is that the U n i t e d S t ates is firmly
committed to a p o l i c y of p r o m o t i n g a h i g h level of trade
throughout t h e worl d .
We have l e a r n e d that a p r o s p e r o u s
world trade is vital to our own peace and pros p e r i t y . We
are p r o m oting e v e r y reasonable p o l i c y that gives some'
promise of r a i s i n g inter n a t i o n a l trade to h i g h l e v e l s and
keeping it there.
W e have laid the f o u n d a t i o n for this
type of w o r l d t h r o u g h our support of the I n t e r n a t i o n a l
Monetary Fund and I n t e r n a t i o n a l Bank.
We have p r o p o s e d the
creation of an I n t e r n a t i o n a l Trade Or g a n i z a t i o n .
W e have
assisted f o r eign countries to d e v e l o p their p o s t w a r import
programs t h r o u g h the ex p a n d e d efforts of the E x p o r t - I m p o r t
Bank.
We are g i v i n g our support to the a t t a i n m e n t of i n t e r
national p o l itical and e c o nomic h a r m o n y t h r o u g h the U n i t e d
Nations Or g a n i z a t i o n .
By every p r a c t i c a l means, we are
seeking to p r o mote the p r o s p e r i t y of all n a t i o n s as a s a f e
guard to our o w n w e l l - b e i n g .
That is fact n u m b e r one.
2
Pact n u m b e r twa, is that these o b j e c t i v e s w h i c h we have
set for o u r s e l v e s can n e v e r be a c h i e v e d in a w o r l d b e s e t w i t h
the b u rden of e x t r e m e d i s c r i m i n a t o r y c o n trols ove r i n t e r
national trade and f o r e i g n exchange trans a c t i o n s .
If the
19,30* s taught us anything, the y taught that severe r e s t r i c
tive controls b r e e d c o u n t e r - c o n t r o l s , and that the vicious
cycle of controls and c o u n t e r - c o n t r o l s leads to a d i s a s t r o u s
curtailment of w o r l d trade and n a t i o n a l p r o s p erity.
We,have
built up t r e m endous export i n d u stries w h i c h t h r o u g h their
oroductive e f f i c i e n c y are able to compete s u c c e s s f u l l y in
world markets, but even the m o s t •e f f i c i e n t i n d u s t r y in the
country cannot compete a g a inst the red tape and d i s c r i m i n a
tion of foreign controls.
American prosperity demands broad
international m a r k e t s and stable! e x c h anges, and so does the
prosperity of the o t h e r co u n t r i e s of the w o r l d • That is
fact n u m b e r two.
T hat is w h y the B r e t t o n W o o d s o r g a n i z a t i o n s
and the I n t e r national T r a d e O r g a n i z a t i o n were- conceived:
to
create, as soon as possible, the: s t a b i l i t y of exc h a n g e s and
hig h levels of trade on w h i c h world p r o s p e r i t y depends»
Fact n u m b e r three is that no pla n for a p r o s p e r o u s
multilateral w o r l d w i t h stable conv e r t i b l e exc h a n g e s can hope
to succeed u n less it includes Great Britain,
E n g l a n d Is the
biggest b u y e r of the w o r l d ’s goods.
She n o r m a l l y takes a full
fifth of the exports of the o t her c o u ntries of the world.
She is our b est customer, and the b e s t c u s t o m e r of a score of
other countries.
That is one r e a s o n w h y E n g l a n d ’s c o o p e r a
tion is essential to our objective.
The second reason is that,
next to the dollar, the pound ste r l i n g is the most important
currency in the i n t e r n ational f i n a ncial world.
If s t e r l i n g is
freely convertible, so that it can be u s e d for p a y m e n t s b y any
country to any country, then our o b j e c t i v e s can be realized.
If it is not convertible, a w o r l d - w i d e s y s t e m of m u l t i l a t e r a l
trade will be impossible.
For e x a mple* o n e - h a l f of our exports
go to countries w h i c h b u y m o r e fro m us than they sell to us,
while they sell mor e to E n g l a n d than they b u y f r o m Engla n d ,
M a i n t aining our exports to these c o u n tries d e p ends on two things:
on their a b i l i t y to sell to E n g land, and on their a b i l i t y to use
the sterling they a c q u i r e in this w a y to p ay us for our goods»
Our trade w i t h Canada, the other B r i t i s h D o m i nions, L a t i n
America, and agricultural™. Euro p e is d e p e n d e n t on this type of
three-cornered trade, an d in e v e r y .case E n g l a n d is the mos t
important third p a r t y in the t r a n s action.
There is still a
third reason w h y E n g l a n d ’s c o o p e r a t i o n is n e c e s s a r y :
England
exerts such a d o m i n a n t influence on the e c o n o m i e s of m a n y
other countries that r e s t r i c t i o n s and controls in E n g l a n d
must lead to r e s t r i c t i o n s and controls In those o t h e r c o u n
tries.
The countries w h i c h trade w i t h E n g l a n d and c a r r y on
their trade in sterling must be a f f e c t e d b y e v e r y change in
B r i t a i n ’s i n t e r n a t i o n a l e c o n o m i c policy.
E n g l a n d is the
keystone o f the B r i t i s h E m pire and the s t e r l i n g area and
these areas account for 40 p e r c e n t of the w o r l d ’s trade.
3
The co u n t r y w h i c h is the w o r l d ’s bes t market, w h i c h
occupies a strategic p o s i t i o n in the m u l t i l a t e r a l t r a ding
pattern of the world, and w h i c h exerts an o v e r p o w e r i n g in
fluence on the commercial and f i n ancial p r a c t i c e s of the
Empire and the s t e r l i n g area, m u s t not be o m i tted f r o m our
plans to e s t a b l i s h an o r d e r l y and stable w o r l d economy.
That is fact n u m b e r three.
Pact n u m b e r four is that E n g l a n d wil l find it impossible
to cooperate w i t h us no w u n l e s s she receives f i n a ncial a s s i s t
ance from outside the st e r l i n g area.
The B r i t i s h e c o n o m y has
been d i s t o r t e d b y the d i s r u p t i o n s o f war.
B r i t i s h exports
are \ess t h a n h a l f the p r e w a r level; o n e - q u a r t e r of the
British M e r c h a n t Mari n e has b e e n lost; mor e than h a l f o f ^her
normal net income from foreign i n v e s t m e n t s has b e e n s a c r i
ficed to p a y for the war.
T h ese are the things by w h i c h
England lives.
T h e y are the f o u n d a t i o n of B r i t i s h prosperity,
w h i c h m e a n s that t h e y are the f o u n d a t i o n o f the great B r i t i s h
market and of the s t a b i l i t y and c o n v e r t i b i l i t y of sterling.
And n o w they are so d e p l e t e d that B r i t a i n cannot excape p a y
ing out about $5 b i l l i o n mor e than she w i l l earn in the p o s t
war t r a n s i t i o n period.
These sources of income w ill not
continue to be so def i c i e n t as they are at present, but they
cannot be mad e up in a short time.
U n t i l they can be mad e up,
the B r i t i s h people m u s t receive assistance, or starve.
They
are not g o i n g to starve, b e c a u s e E n g l a n d is g o i n g to borrow,
from one source if n o t f r o m another.
But the w a y in w h i c h
this b o r r o w i n g is done is a m a t t e r w h i c h concerns us, b e c a u s e
one m e t h o d w ill lead to B r i t i s h c o o p e r a t i o n w i t h our p r o g r a m
and the other m e t h o d wil l lead to B r i t i s h r e p u d i a t i o n of our
policies.
If we do not lend m o n e y to England, she will be forced
to do two things!
to reduce the B r i t i s h s t a n d a r d of living,
w h i c h is a l r e a d y l o w e r than in 1938, and. to b o r r o w fro m
within the s t e rling area.
B o t h of these m e a s u r e s w o u l d be d i s a s t r o u s .
If E n g l a n d
cuts the standard o f l i v i n g by i m p o r t i n g less, o t her countries
will sell less, and w ill be able to b u y less f r o m us and f rom
the World.
W o r l d trade will suffer.
A n d if E n g l a n d b o r r o w s
from c o u ntries w i t h i n the s t e r l i n g area, she wil l be forc e d to
m a i n t a i n and even to i n t e n s i f y all of the trade and e x c hange
controls d e v e l o p e d d u r i n g the war.
T his is b e c a u s e b o r r o w i n g
from, sterling area c o u n tries w i l l n o t solve the f u n d amental
problem, w h i c h is the B r i t i s h s h o rtage of d o l l a r s and other
convertible currencies.
S t e r l i n g will c o n tinue to pile up in
blocked accounts, instead of b e i n g m a d e c onvertible; m u l t i
lateral c l e a r i n g will be g i v e n a b o d y blow.
A m e r i c a n d o l lars
will still be scarce, and A m e r i c a n products will the r e f o r e be
d i s c r i m i n a t e d against.
D o l l a r s p a i d to s t e r l i n g area exporters
4
will have to be turned over to the s t e r l i n g area d o l l a r pool*
England will be forced to e n t e r into a vicious d i s c r i m i n a t o r y
trade war, c h a r a c t e r i z e d b y subsidies, exchange controls, and
bilateral a g r e ements*
E n g l a n d w ill l e a v e the B r e t t o n W o o d s
organizations.
E n g l a n d has no o t h e r a l t e r n a t i v e .
She m u s t b o r r o w in
sterling or in dollars.
B o r r o w i n g in st e r l i n g m e a n s belttightening, and it m e a n s a r e p u d i a t i o n of the po l i c i e s we
are promoting.
E n g l a n d cannot c o o p e r a t e w i t h us unless we
render he r s u b s t antial a s s i stance.
That is fact n u m b e r
four.
Before p r o c e e d i n g further, let me r e v i e w the four steps
I have a l r e a d y outlined.
First:
we are s t r iving to create
a prosperous, p e a ceful world.
Second:
w o r l d trade cannotbe built on a basis of bi l a t e r a l i s m , d i s c r i m i n a t i o n , and r e
striction.
Third:
c r e a t i n g a m u l t i l a t e r a l w o r l d trade
system w i t h a m i n i m u m of d i s c r i m i n a t i o n and r e s t r i c t i o n r e
quires the c o o p e r a t i o n o f England, the o t h e r B r i t i s h c o u n
tries, and the s t e r l i n g area.
Fourth:
England, w h i c h will
set the p a t t e r n for these o t h e r areas, is faced w i t h the
alternative of b o r r o w i n g in sterling, or b o r r o w i n g in
dollars.
B o r r o w i n g in st e r l i n g cannot be done w i t h o u t r e
sorting to the very type of r e s t r i c t i o n s we are s e e king to
eliminate.
Those are
the fou r simple facts w h i c h our n e g o t i a t o r s
had in m i n d w h e n the y w o r k e d out the Financial A g r e e m e n t
w i t h England*
Now, I want to turn y o u r a t t e n t i o n to the
fifth and last fact.
Fact n u m b e r .five is that the Agreement,
which our n e g o t i a t o r s w o r k e d out in less than 100 days a f t e r
the close of a long and d i s r u p t i v e war, a c c o m p l i s h e s every
one of the o b j e c t i v e s n e c e s s a r y to l a y i n g a f o u n d a t i o n for
the kind of w o r l d we are t r y i n g to build.
Let us look at
the pro v i s i o n s of the A g r e ement,
The A g r e e m e n t calls for a loa n - not a gift - o f about
three-quarters of the amount the B r i t i s h e s t i m a t e they will
need before r e c o n v e r s i o n is complete.
W e are a s k i n g that
that loan be repaid, and that interest be paid except in a
year w h e n w o r l d trade is so b ad and B r i t i s h exports are so
low that the B r i t i s h m a r k e t for our ex p o r t s and the exports
of other countries is s e r i o u s l y e n d a n g e r e d .
W e are g i v i n g
England time to get b a c k on her feet.
W e are p u t t i n g En g l a n d
in a position w h e r e she is abl e to coo p e r a t e w i t h us#
That
is one side of the Agr e e m e n t .
The other side is that we are
operation, and are s p e c i f y i n g w h a t
to t a k e .
i n s i s t i n g u p o n that co*
f o r m that c o o p e r a t i o n is
5
We have., ob t a i n e d E n g l a n d ’s a g r e e m e n t to m ake all
sterling a r i s i n g f r o m c u r rent trade freely c o n v e r t i b l e w i t h i n
one year.
P r a c t i c a l l y every co u n t r y in the w o r l d exports mor e
to England t h a n it imports from E n g land.
This a g r e e m e n t en^
sures the a b i l i t y of e a c h c o u n t r y t-o use its income f r o m those
exports for p u r c h a s e s in the U n i t e d States, or any other area.
E n g l a n d has agre e d to d i s s o l v e the d o l l a r pool w i t h i n
one year.
The m o n e y st e r l i n g area countries get f r o m their
exports to the U n i t e d States can be spent at the will of
the holder, and will not have to be s a c r i f i c e d to a central
dist r i b u t i n g authority.
E n g l a n d agrees, also, that the s t e r l i n g earnings of
American exporters and p r o d u c e r s a b r o a d can be con v e r t e d
freely into dollars.
B r i t i s h import contro ls wil l be a d m i n i s t e r e d in s u c h a
way that our p r o d u c e r s a nd traders wil l n ot be d i s c r i m i n a t e d
against.
E n g l a n d has c o n s e n t e d to support our p r o p o s a l s for an
international t r ade o r g a n i z a t i o n for the r e d u c t i o n of trade
barriers and the e l i m i n a t i o n of trade r e s t r i c t i o n s .
The huge s t e r l i n g b a l a n c e s w h i c h w e r e b u i l t u p d u r i n g
the war will be settled, in part by an immediate payment, and
in part by pa y m e n t s o v e r a p e r i o d of years.
A n y r e l eases on
these b a l ances will be freely convertible, and can be u sed
for purchases in the U n i t e d States or in a n y o t h e r country.
By o b t a i n i n g these commitments, we have a c h i e v e d the
cooperation- o f England, and we have m a d e that c o o p e r a t i o n
specific.
E n g l a n d will continue to p r o v i d e a m a r k e t for
world goods; h e r trade wil l be on a m u l t i l a t e r a l , instead
of a b i l a t e r a l basis; h e r q u a n t i t a t i v e trade c o n trols will
not d i s c r i m i n a t e a g a i n s t A m e r i c a n producers.
W h e n our n e g o t i a t o r s e n t e r e d into d i s c u s s i o n s w i t h the
British, they s t u died the four facts I have p r e s e n t e d to you.
heir c o n c l u s i o n was that we had two a l t e r n a t i v e s : we could
extend to E n g l a n d a c r e d i t of $>5,750',000,000
and e n hance the
poss i b i l i t y of a c h i e v i n g a p r o s p e r o u s and p e a c e f u l world,
or
we could refuse to l e n d to England, and lose, p e r h a p s p e r m a
nently, our chances o f attaining* that o b j e ctive.
In the
agreement w h i c h t h e y prepared, the y chosef the first a l t e r native,
ut they w e n t further:
t hey o b t a i n e d specific c o m m i t m e n t s that
the^major o b s t a c l e s to our e c o n o m i c p r o g r a m for p e ace and p r o s
perity w o u l d be don e awa y with.
T hat is the fifth, and final,
fact.
6
The p r o b l e m is one that touches the future o f the peopl
of the U n i t e d States and should be c o n s i d e r e d b y all thought
ful m e n in that light.
0O 0
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1|03, WILKINS
BUILDING.
iminary figures showing
a during the period
Quantity in Pounds
As of March 23, lÿ *6
woua&ry 01 rrouucbiuu
Signatory Countries:
69g.u17.oi«)
3 2 u .9 u 5 .0 6 i
12.277.6UU
161
lU ,665,681
8 , 875,>*57
1 5 . 7 8 5 ,1 9 3
3 6 ,6 9 6 ,0 2 2
13.7U 7.262
U . 3 7 5 . 5 U3
2 3 . 2 3 7 .UU7
6 .5 6 3 .1 5 1
2 ,1 1 9 .8 9 6
22.6U 6.518
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
México
Nicaragua
Perú
Venezuela
21.171,857
Non-Signatory Countries:
TOTAL
1 , 2 0 5 , 5 2 3 ,9 3 3
POR IMMEDIATE RELEASE
April 2, 19^6
The Bureau of Customs announced today preliminary figures shoving
the quantities of coffee entered for consumption during the period
commencing October 1 , 19^5» as follows:
Country of Production
Quantity in Pounds
As of March 23, 19^6
Signatory Countries:
69g.u17.oi«)
3 2 u .9 u 5 .0 6 i
12.277.6UU
161
lU .6 6 5 .6 g 1
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haití
Honduras
México
Nicaragua
Perú
Venezuela
S.S75.U57
1 5 . 785.193
3 6 ,6 9 6 ,0 2 2
13.7U 7.262
U.375.5U3
23.237.UU7
6 .5 6 3 ,1 5 1
2 ,l l 9 ,g 9 6
2 2 .6 U 6 .5 ig
Non-Signatory Countries:
gl.l7l.S57
TOTAL
1 ,2 0 5 .5 2 3 ,9 3 3
TREASURY DEPARTMENT
W a s h in g t o n
POR IM M ED IATE R E L E A S E
W e d n e sd a y , A p r i l 3 , 1 9 4 6
P r e s s S e r v ic e
N o. V -2 8 3
The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s
s h o w in g t h e q u a n t i t i e s o f c o f f e e e n t e r e d f o r c o n s u m p t io n d u r i n g
th e p e r i o d co m m e n cin g O c t o b e r 1 , 1 9 4 5 ? a s f o l l o w s ;
Q u a n t it y in P o unds
A s o f M a rc h 23? 1 9 4 6
C o u n t r y o f P r o d u c t io n
S ig n a t o r y C o u n t r i e s ;
698,417,040
324,945,061
12,277,644
161
B r a z il
C o lo m b ia
C o sta R ic a
C uba
D o m in ic a n R e p u b l i c
Ecuador
E l S a lv a d o r
Gru a t é m a la
H a it i
H o n d u ra s
M e x ic o
N ic a r a g u a
P e ru
V e n e z u e la
14,665,681
8,875,457
15,785,195
3 6 , 696,022
13,747,262
4,375,543
23,237,447
6,563,151
2 119,896
22,646,518
,
N o n - S ig n a t o r y C o u n t r i e s ;
21,171,857
TOTAL
1,205,523,933
Redemptions of Series E,
F and G Savings Bonds
in March were $603,688,316, and in the first quarter
$1,727,786,000,
current value*
Of the sum total of
all Savings Bonds issued since May 1 , 1941, only 21$
had been redeemed by the end of March, which means
that 79X
out of every dollar invested in them was still
in the Treasury*
Similarly, only 26*70$ of the E Bonds
had been redeemed and 73*3 cents out of every dollar*s.
w o r t h of these bonds was still in the hands of the
original owners at the month*s end.
V
RIL
4
WASHINGTON, D. G., APRIL 3 - Sales of U. S. Savings Bonds reported in March
totalled $626,371,490 and sales for the first quarter of 1946 were $2,208,334,000,
the Treasury announced today,
«The first quarter's sales this year were 79 per cent of those in the first
quarter of 1945, when we were at war with both Gerraaiyand Japan,” Secretary
roga M P T
Vinson oommontod»
«This reflects great credit Upon the many
thousands of volunteers who are continuing their patriotic services to the bond
program in peacetime and it certainly demonstrates that millions of Americans want
to continue saving through regular investment in U. S. Bonds.”
Redemptions of Series A, B, C and D Savings Bonds, all issued before May 1, 1941,
totalled $30,631,000 in March, the greater part of this sum being paid out on A and
B bonds now maturing at the end of ten years and, like the current E bonds, paying
four dollars for each three invested.
Actual transactions in March and the first quarter were greater than the totals
reported, it was explained, since five of the twelve Federal Reserve Banks during
the month discontinued daily telegraphic reports and began to send in savings bonds
figures by mail.
Furthermore, the last business day of March fell on Saturday and
no bond transactions that day were reported in time to be included in the March totals
# # # #
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
Thursday, A p ril 4, 1946
Press Service
No. V-284
W A S H I N G T O N , D. C„, A P R I L 4
Sale»
of U. S. S a v ings
Bonds r e p o r t e d in M a r c h t o t a l l e d $ 6 2 6 , 3 7 1 , 4 9 0 and sales for
the first q u a r t e r of 1946 were $ 2 , 2 0 8 , 3 3 4 , 0 0 0 , the T r e a s u r y
announced today.
"The first quarter* s sales this y e a r wer e 79 p e r c e n t of
those in the first qu a r t e r of 1945, w h e n we were at w a r w i t h
both G e r m a n y and Japan," S e c r e t a r y Vinson o b s e r v e d , _ "This
reflects g r e a t credit u p o n the m a n y t h o u s a n d s of v o l u nteers
who are c o n t i n u i n g t h e i r p a t r i o t i c services to the b o n d p r o
gram in p e a c e t i m e and it c e r t a i n l y d e m o n s t r a t e s that m i l l i o n s
of A m e r i c a n s want to continue s a v i n g t h r o u g h regular i n v e s t
ment in U* S, Bonds,"
R e d e m p t i o n s of Series E, F and G S a v ings B o nds in M a r c h
were $ 6 0 3 , 6 8 8 , 3 1 6 , and in the first q u a r t e r $ 1 , 7 2 7 , 7 8 6 , 0 0 0 ,
current value.
O f the sum total of all Savings Bonds issued
since M a y 1, 1941, only 21 p e rcent h ad b e e n r e d e e m e d by the
end o f March, w h i c h m e a n s that 79 cents out of e v e r y d o l l a r
invested in t h e m w a s still in the Tre a s u r y .
Similarly, only
26.70 percent of the E B o nds had b e e n r e d e e m e d an d 73**3 cents
out of e v e r y d o l l a r ’s w o r t h of these b o nds was still in the
hands of the ori g i n a l owners at the m o n t h ’s end*
R e d e m p t i o n s o f Seri e s A, B, C and D Sa v i n g s Bonds, all
issued b e f o r e M a y 1, 1941, t o t a l l e d $ 3 0 , 6 3 1 , 0 0 0 in March, the
greater part of this s u m b e i n g p aid out on A and B Bonds now
ma t u r i n g at the end of ten years and, like the current E Bonds,
paying four d o l l a r s for e a c h three invested.
Actual t r a n s a c t i o n s in M a r c h and the first q u a r t e r w e r e
even g r e a t e r than the totals reported, it w as explained, since
five of the twelve Federal Reserve B a nks d u r i n g the m o n t h d i s
continued d a i l y t e l e g r a p h i c reports and b e g a n to send in s a v
ings b o nds figures b y mail.
Furthermore, the last b u s i n e s s
day o f M a r c h fell on S a t u r d a y and no b o n d t r a n s a c t i o n s that
day were r e p o r t e d in time to be i n c luded in the M a r c h totals.
oOo
/[X4^ÎM^C
J
JL
-
v
N
The Chinese Government has appointed Koo Yee-Chun as
Executive Director of the International Monetary Fund and Sheh
Lai-Ching Executive Director of the International Bank for
Reconstruction and Development according to information re-
ceived today by Secretary
Tp oaougy jfinson^ re cently
elected Chairman of the Boards of Governors of the two inter
national institutions at the Inaugural Meeting in Savannah,
Georgia.
As one of the five nations having the largest quotas
in the Fund and Bank, China is entitled to appoint Executive
*
Directors.
j Mr» Koo is a former Vice Minister of Finance in the Chinese
Government and at present is Secretary of the Governing Board
for the four largest banks in China.
He previously was Managing
Director of the Farmers Bank of China and visited the United
States in 1944 for the Bretton Woods Conference add in 1936 in
connection with silver discussions with this Government.
Mr. Shen is an official of the Continental Bank of Shanghai.
[Roth Mr. Koo and Mr. Shen are presently in China and will
come to Washington for the first meetings of the Executive Di
rectors on May 6 and 7«
TREASURY DEPARTMENT
Washington
Press Service
No. V-285
FOR IMMEDIATE R E L E A S E
Thursday, April 4, 1946
The Ch i n e s e G o v e r n m e n t has a p p o i n t e d Koo Y e e - C h u n as
Executive D i r e c t o r of the
I n t e r n a t i o n a l M o n e t a r y ^und,
Shen L a i - C h i n g E x e c u t i v e D i r e c t o r of the
and
International Bank
for R e c o n s t r u c t i o n and D e v e l opment,
a c c o r d i n g to i n f o r m a t i o n
received t o d a y b y S e c r e t a r y
recently elected Chairman
of the B o a r d s of Gov e r n o r s
tions at
of the
Vinson,
of the
international
the I n a ugural M e e t i n g in Savannah,
Georgia.
five n a t i o n s h a v i n g the l a r gest quotas
and Bank,
Mr.
China
Koo
ing B o a r d
is a former Vice M i n i s t e r o f Finance
A s one
Fund
ited the U n i t e d States
in the
is S e c r e t a r y of the G o v e r n
for the four largest banks
was M a n a g i n g D i r e c t o r of the
and
in the
institu
is e n t i t l e d to a p point E x e c u t i v e Dir e c t o r s .
Chinese G o v e r n m e n t a nd at pr e s e n t
ence,
two
in u h i n a .
He p r e v i o u s l y
farmers B a n k of C h ina and v i s
in 1944
for the B r e t t o n W o o d s C o n f e r
in 1 956 in c o n n e c t i o n w i t h silver d i s c u s s i o n s with,
this Government.
Mr.
S h e n is an o f f i c i a l
of the C o n t i n e n t a l
Bank o f Shanghai.
B o t h Mr. Koo and Mr.
will come
S h e n are p r e s e n t l y
to W a s h i n g t o n for the
tive D i r e c t o r s
on M a y
in C h ina and
first m e e t i n g s
6 and 7.
oOo
of the E x e c u
J u ^
Denmark has officially joined the International Monetary Fund and
the International Bank for Reconstruction and Development, according to
Secretary of
frfrn Trnntimny
Vinson, Chairman of the Board of
Governors of the two international agencies.
Henrik de Kauffmann,
Danish Minister to the United States,signed for his country in Washington
after ratification hy the Danish Parliament.
^Denmark participated as an observer at the Bretton Woods Monetary
Conference in 1944, hut no quota was established because Denmark was then
occupied by German forces.
At the recent Inaugural Meeting in Savannah,
Georgia, her quota was established at $68,000,000 for the Fund with a like
t for the Bank,
Mr. de Kauffmann al-oo anncremeed his Government has named as Governor
*
J
for the Fund and Bank Mr. Carl Valdemar Bramsnaes, Governor# of the National
Bank of Denmark.
Mr. Einar Dige, Assistant Secretary of the Danish
Treasury was named Alternate Governor of the Fund and Mr. Erling
t
Sveinbjornsson, Chief of Division of the Ministry of Commerce was named
Alternate Governor of the Bank.
TREASURY DEPARTMENT
Washington
Press; Service
V-286
FOR I M E D I A T E R E L E A S E
T hu,rsday, A p r i l 4, 1946
D e n m a r k has
officially
joined the I n t e r n a t i o n a l M o n e t a r y
Fund a n d the I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n a n d D e v e l o p
ment,
a c c o r d i n g to S e c r e t a r y Vinson,
of G o v e r n o r s
Kauffmann,
of the two
Chairman
of the Board
i n t e r n a t i o n a l agencies,
H e n r i k de
D a n i s h M i n i s t e r to the U n i t e d States,
his Country
in W a s h i n g t o n a f t e r r a t i f i c a t i o n
Parliame nt*
s i g n e d for
by the D a n i s h
/
D e n m a r k p a r t i c i p a t e d as an ob s e r v e r at the B r e t t o n Woods
Mon e t a r y C o n f e r e n c e
in 1944,
because D e n m a r k was
then o c c u p i e d by G e r m a n forces.
recent'Inaugural Meeting
b u t no q u ota was
in Savannah,
Georgia,
established
A t the
her q u ota was
established a t $ 6 8 , 0 0 0 , 0 0 0 f o r the F u n d w i t h . a like s u b s c r i p t i o n
for the Bank,
A c c o r d i n g to Fir, de Kauffmann,
his G o v e r n m e n t has n a m e d
as G o v e r n o r for the F u n d a nd B a n k Mr, C a r l V a l d e m a r B r a m s n a e s ,
Governor
of the R a t i o n a l B a n k of Denmark,
Assistant Secretary
Governor
of
Mr.
E i nar Dige,
of the D a n i s h T r e a s u r y was n a m e d A l t e r n a t e
the F u n d and Mr,
Erling- S v e i n b j o r n s s o n , C h i e f
of
Division of the M i n i s t r y - o f C o m m e r c e was n a m e d A l t e r n a t e G o v e r n o r
of the Bank,
- 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. 41$* as amended, and this notice, orescribe 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.
a s m
- 2
Reserve Banks and Branches, following which public announcement will be made by the
Secretary of the Treasury of the amount and price range of accepted bids.
Those
submitting tenders will be advised of the acceptance or rejection thereof.
The
Secretary of the Treasury 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 $200,000 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 atffered must be made or completed at the Federal Reserve Bank
in cash or other immediately available funds on
April
19U6
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
1+2 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
m i
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORFINE NEWSPAPERS,
Friday, April R 19U6__________ .
The Secretary of the Treasury, by this public notice, invites tenders
for 1 1,300,000,000
, or thereabouts, of
.91 -day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter pro
vided.
The bills of this series will be dated
April 11, 19k6
, and will
x 5 jc
July 11, 19U6_______ , when the face amount will be payable without
mature
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
Standard
closing hour, two o ’clock p.m., Eastern Star time,
Monday, April 8, 19U6_____
Tenders will not be received at the Treasury Department, Washington.
Each tender
must be for an even multiple of $3.,000, and the price offered must be expressed
on the basis of 100, with not more than three decimals, e. g,, 99-925may 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 of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an
expr'ess guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at the
F e d e ra l
TREASURY DEPARTMENT
Washington
FO R RELEASE, M O R N I N G N E W S P A P E R S
Friday, April 5, 1946
The
S e c r e t a r y of the Treasury, b y this public notice,
invites tenders .for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 91-day
T r e a s u r y bills, to be
i s s u e d on a d i s c o u n t b a s i s u n d e r c o m
petitive and fixe d - p r i c e b i d d i h g as h e r e i n a f t e r provided. The
bills of this series will be d a t e d April 11, 1946, and will
mature July 11, 1946, w h e n the face amount will be payable
without interest. T h e y will be issued in b e a r e r f o r m only, and
in d e n o m i n a t i o n s of $.1,000,
$5,000,
$10,000, $100,000,
^ 5 0 0 , 0 0 0 and $ 1 , 0 0 0 , 0 0 0 ( m a turity value).
T e n d e r s will be received at Federal Reserve Banks and
Branches up to the c l o s i n g hour, two o ’c l o c k p.m., E a s t e r n
Standard time, Monday, April 8, 1946.
T e n d e r s wil l n ot be
received at the T r e a s u r y D epartment, W a s h i n g t o n . E a c h tender
must be for an even m u l t i p l e of $1,000, and the price o f fered
must be e x p r e s s e d on the b a sis of 100, w i t h not mor e than
three decimals, e.,g., 99.925.
Fractions m a y not be used.
It
Is urged that tenders be mad e on the p r i n t e d forms and f o r
warded in the special e n v e l o p e s w h i c h will be supplied by
Federal R e s e r v e B a n k s or B r a n c h e s on a p p l i c a t i o n therefor.
Te n d e r s will be r e c e i v e d w i t h o u t d e p osit f rom i n c o r p o r a t e d
banks and trust com p a n i e s and f r o m resp o n s i b l e and r e c o g n i z e d
dealers in investment securities.
T e n d e r s f r o m others m u s t be
a c c o m panied by payment of 2 pe r c e n t o f the face amount of
T r e a s u r y b i lls a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
by an express g u a r a n t y o f p a y ment b y an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders will be o p ened
at the Federal R e s e r v e B a n k s and Branches, f o l l o w i n g w h i c h p u b
lic a n n o u n c e m e n t will be m ade b y the S e c r e t a r y of the T r e a s u r y
of the amou n t and price range of a c c e p t e d bids.
T h ose s u b m i t t
ing tenders will be a d v i s e d of the a c c e p t a n c e or r e j e c t i o n
thereof.
The S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves the
right to accept or reject any or all tenders, in whole or in
part, and his a c t i o n in any such respect shall be final.
Sub
ject to t h ese reservations, tenders for $-200,000 or less f r o m
any one b i d d e r at 9 9 , 9 0 5 entered on a f i x e d - p r i c e b a s i s will
be acc e p t e d in full.
Payment o f a c c e p t e d tenders at the
prices o f f e r e d m u s t be m a d e or c o m p l e t e d at the Federal Reserve
Bank in ca^sh or o t h e r i m m e d i a t e l y ava i l a b l e funds on April 11-,
1946 •
V-287
2
The income derived f r o m T r e a s u r y bills, w h e t h e r interest
or gain f r o m the sale or o t h e r d i s p o s i t i o n of the bills, shall
not have an y exemption, as such, and loss f r o m the sale or
other d i s p o s i t i o n of T r e a s u r y bills shall not have any special
treatment, as such, u n d e r Federal tax Acts now or h e r e a f t e r
enacted.
The b i lls shall be "subject to estate, inheritance,
gift, or o t h e r excise taxes, w h e t h e r Federal or State, but
shall be exempt f r o m all taxation n ow or h e r e a f t e r imposed on
the p r i n c i p a l or interest t h e r e o f b y any State, or any of the
possessions of the U n i t e d States, or b y a ny local taxing
authority.
For p u r poses of t a x ation the amount of d i s c o u n t
at w h i c h Tre a s u r y bills are o r i g i n a l l y sold by the U n i t e d
States shall be c o n s i d e r e d to be interest.
U n d e r Sections 42
and 117 (a) (1) of the Internal Re v e n u e Code, as a m e n d e d by
Section 115 of the Revenue Act o f 1941, the a m ount of d i s c o u n t
at w h i c h bills issued h e r e u n d e r are sold shall not be c o n s i d
ered to a c c r u e u n til suc h b i l l s shall be sold, r e d eemed or
otherwise d i s p o s e d of, and such b i l l s are ex c l u d e d fro m c o n
sideration as capital assets.
Acco r d i n g l y , the o w ner of
Treasury bills (other than life insurance companies) issued
hereunder n eed include in his income tax return o n l y the d i f
ference b e t w e e n the price paid .for s u c h bills, w h e t h e r on
original issue or on s u b s e q u e n t purchase, and the amount
actually received e i t h e r u p o n sale or r e d e m p t i o n at m a t u r i t y
during the taxable year for w h i c h the return is made, as o r
dinary 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, and this
notice, pre s c r i b e the terms of the T r e a s u r y bills and g o v e r n
the conditions of their issue.
Copies of the c i r c u l a r m a y be
obtained f r o m any Federal Reserve D a n k or -Branch*
oOo
\T LIMITATION
;.f-' *
to
T R EASURY DEPART M E N T
□Oil”
!» as amended, provides that the face amount
Act, and the face amount of obligations
•United States (except such guaranteed
the Treasury), "shall not exceed in the
one time."
..... .......
of obligations outstanding and the face
mitations
ny one time
$300 ,000,000,000
Act, as amended
.^05,350
.150,700
.317,000
.157.956
^7
$181.592,031,006
,296,200
,1183,000
tl^.ooo
.335.135
.15^.539
Y - Y
103.707.002.200
285.299.033.206
238.299,056
221,1189.6]b
285,758,821,936
ler above authority.
286.311.897.669
13.688.102:331
jp Public Debt - March 31* 19^6
tates Treasury, April 1, 19**6)
276,012,1+18,8^7
sury
itions................. .
MR. H E F F E L F Ï N G E R
Aaa - unearned discount on u*s>, oavmgs jjonas
(Difference between maturity value and current redemption value)
^ -10,730 ,071,856
Deduct - other outstanding(public) debt obligations
not subject to debt limitation.*............ .... 983,668,767
5SÆ a z a
276,565, ^ . 5 8 0
9,7»6.U03,Qg9
286,311 ,897,669
Approximate face or maturity v|dke; current redemption value $^8,733*078,8^-3*
RRMulroe/tm
i d
V- v
LIMITATION
j£ 5
V F
F O L X Q à lI
31»
Ï5 n S
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued under authority of that Act, and the face amount of obligations
guaranteed as to principal and interest by the United States (except such guaranteed
obligations as may be held by the Secretary of the Treasury), “shall not exceed in the
aggregate $300,000,000,000 outstanding at any one time.“
The following table shows the face amount of obligations outstanding and the face
amount which can still be issued under this limitations
Total face amount that may be outstanding at any one time
Outstanding March 31» 1946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Bonds
Treasury..........
$121,177,405,350
Savings (maturity value)* ... 59*463*150,700
Depositary.............
451,317,000
Adjusted Service..........
500,157,956 $181,592,031,006
Treasury notes..... .
37*545*296,200
Certificates of indebtedness...
1*9,114,483,000
Treasury bills..............
17,047.223,000
Total interest-bearing.................. .
Matured, interest~ceased..... ............ ....
Bearing no interest
War Savings Stamps..........
112,335*135
Bxcess profits tax refund bonds
109.154,539
Total.............................................
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: Ï.H.A......
40,386,936
Demand obligations: G.G.C. ... ____ 501,322,322
Matured, interest-ceased................... .
$300,000,000,000
JgLJgLJB&SS*
235.299.033.2Oé
233 ,299.056
221.t*gq.67**
285.758,821.936
5^1,709,258
553.075.733
Grand total outstanding............. .................
Balance face amount of obligations issuable under above authority...... •
13.688,102,331
Reconcilement with Statement of the Public Debt - March 31» 19^6
(Daily Statement of the United States Treasury, April 1, 1946)
Outstanding March 31* 1946
Total gross public debt..,....,...,...... .............. .
276,012,418,847
Guaranteed obligations not owned by the Treasury..... ...... •••••••••«
553*075*733
Total gross public debt and guaranteed obligations...........
276,565*494,580
Add - unearned discount on U,S, Savings Bonds
(Difference between maturity value and current redemption value)
__
Deduct - other outstanding(public) debt obligations
not subject to debîTilmitation........
10,730,071.856
983*668,767
9*746,403,089
286,311,897,669
* Approximate face or maturity vjdfye; current redemption value $**3,733,07S, 8^3*
RHMalroe/tm ^
Q f
\/^ V
STATUTORY DEBT LIMITATION
AS OF MARCH 31, 19 ¿6
April
5 , 1946
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury),
“shall not exceed in the aggregate $300,000,000,000 outstanding at any one time.”
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
Dubstanding March 31* 194$
Obligations issued under Second Liberty Bond Act, as amended
Int er est-be aring
Bonds
Treasury........ ........$121,177,405,3 50
Savings (maturity value )-* 59*463*150,700
Repo sit ary
......
151* 317,000
Adjusted Service.........
500*157,956 $181,592,031* 006
$300,000,000,000
Treasury notes............. 37*545*296,200
Certificates of indebtedness 49*114*403*000
Treasury bills.... ......... 17,047,223,000 10,3,707,002,200
Total interest-bearing.......... .
285*299* 033*206
Matured, interest-ceased............... ..
238,299 *056
Bearing no interest
Uar Savings Stamps...,.....
112,335,135
Excess profits tax refund bonds 109,154, 539 ___221,4B9,674
Total......................................
285,758,821,936
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.II.A...........
40,386,936
Demand obligations:C.C.C. ...
501,322,322
Matured, interest-ceased.... .........
541*709,258
11,366,475
...5:53*07 5, 731
Grand total outstanding.
..... .......................
Glance face amount of obligations issuable under above authority.
286,311,897,669
13 ,688^102,331
Reconcilement with Statement of the Public Debt - March 31* 1946
(Daily Statement of the United States Treasury, April 1, 1946)
Outstanding March 31, 1946
Total gross public debt................. ................. ......
276,012,418,847
Guaranteed obligations not owned by the Treasury............ .
553,075,733
Total gross public debt and guaranteed obligations.......... .
276, 565*494,580
tG-d - unearned discount on U«S# Savings Bonds
(Difference between maturity value and current redemption value)
^
'
10,730,071,856
educt - other outstanding public debt obligations
not subject to debt limitation..............
983,668,767r~ ’ 9 ,746,403,089
286,311,897,669
_
-------- ,%
PPuoximate face or maturity valuej current redemption value
$48,733* 078,843•
7-288
— *—
—
----------------------
the ri gh ts of ma n.
It has be en said of h i m
t h a t h e w o u l d t a k e i n i t i a t i v e jiìk 0'”*/fefefCr,’p u l
rrj&nd a c c e p t r e s p o n s i b i l i t y b y t h e c a r l o a d .
^Fhc s a m e c a n b e s a i d of a l l l o a d o r o o f t h e
D<min 11"! I
i
~
t e t t m r z a s ^ s a e $ a E : XK5]
^ ^ M h a t the p e o p l e of A m e r i c a are n o t a f r a i d .
The h o p e of t o m o r r o w rests w i t h you, the
people. Yo u k n o w your way, a n d the road ahead
is straight an d broad although there are m a n y
hi ll s to climb.
T. pffleyg^feasisStfm ■uJH ihe D e m o c r a t i c
P a r t y w i l l c o n t i n u e t o brrr \}mw\u i ' u m g ~ |ne h e l p y o u
a t t a i n t h e g o a l s t n a t |"'yeu w i l l i n y o u r c o n s i d e r e d
judgment.
- 29 Persons can debate for hours about the so-called
e c o n o m i c m e r i t s o f a n i n c r e a s e i n the; m i n i m u m
♦
wage. But th e^point to remember is the
i m p r o v e m e n t of t h e A m e r i c a n s t a n d a r d o f l i v i n g ,
and of permitting all some respectable share
in it*
The American people want the m i n i m u m
A n d r e w Jackson was great in action, great in
courage, a n d g r e a t in a deep u n d e r l y i n g sense of
ï
-
28
-
remember that those who lacked vision regarded
1 0 0 ,0 0 0
planes a ye ar as fantastic.
If w e wh o r e p r ese nt the pe o p l e show the
same courage and determination in attacking the
h o u s i n g pr ob lem as the A m er ica n people showed in
a t t a c k i n g the p r o b l e m s of war, a n d as the A m e r i
c a n p e o p l e a r e p r e p a r e d to s h o w in a t t a c k i n g the
pr ob lem s of peace, then we wi l l re ac h our goal.
Another important matter which the defeatists
a m o n g u s a r e t r y i n g to b l o c k i n v o l v e s t h e i s s u e
as to w h e t h e r in th is g r e a t l a n d of ours m i l l i o n s
of w o r k e r s s h o u l d r e c e i v e n f m r n t f m t i n l in ores m
/t
i s — t h a 4 - r - w a g ,e s b
y
-°*% p-4 ...
lu w
w age
f
p r o v jr d e d b y 4 y h e " 'F a r± ‘r°^hab'eiTi<wS tra n darr d s 1 A et* •
- 27 w h i c h is the goal set by the D e m o c r a t i c A d m i n i s -
which we have set for housing is no more beyond
the capacity of Am er ica than the goals w h i c h were
set f o r guns an d ships and tanks and planes during
the war* You remember what the faint-hearted said
when this Administration said 25,000 planes a year#
Y o u w i l l recall w h a t the p e s s i m i s t s said wh en the
goal was raised to 50,000.
And finally you will
- 26 doing n o f a v o r to the cause of freedom.
Our
system of free enterprise has enabled the United
States to out-produce every other country in the
w o r l d a n d to wi n this m o s t de st ruc ti ve of all
wars w i th a mi ni mum loss of American lives and
th e m a x i m u m r e l i a n c e on the p r o d u c t s of i n d u s t r y .
Our system of free enterprise will build us an
even greater nation.
The American system of
fr ee en te rpr is e w i l l enable us to w i n the pe ac e
ev en t h o u g h s o m e of th o s e w h o c l a i m to l o v e it so
dearly keep in si sti ng that it m u s t pr oduce depressions
to r e a l i z e its n a t u r a l beau ty.
There are even those among us who claim that
the go al of 2, 70 0,0 00 n e w h o m e s b y the end of 1947 —
- 25 There are those among us, however, who
unwittingly play into the hands of the fearmongers#
These are the persons who have a
defeatist attitude with respect to our economic
system#
They te ll us, for example, that the free
enterprise system makes periods of unemployment
necessary#
The American people, however, will
not be taken in by the assertions of either the
fear-mongers or the defeatists#
They have greater
faith in the American system than that.
They will
not be placed in the false dilemma of choosing
between full employment and a free society.
They
know that depressions are not the price of freedom#
And they know that those who think this way are
- 24 who have no faith in America and the American
way of doing things^who entertain any such fear.
"f? If we make the American system of free enterprise
work here at home in time of peace with the same
outstanding success that i t achieved in time of
war, we need have no reason to fear the propaganda
of any system that promises a short-cut to Utopia.
Our answer to any such threat is production to
capacity in peace as we have produced to capacity
in war, providing full employment and a better
life for a ll.
This we cannot so well achieve if
we live in fear of war or in fear of this or in
fear of that.
I have no fear that the American
people will ever live in fear.
- 23 know today, what we should have long known, that
our programs in the domestic field and in the
foreign field are interdependent. {Fer»
Economic sectfMtyNm
.ca^Contributes to
economic security thr
mtHhe world and to
lasting peace./In
omic secuf!t4v in any
Sfa,.
other cpdntry ç/ntributes
onomi c security
The fear-mongers are at work today on the
home front just as they are at work on the world
front.
The "bogey” of the spread of communi sm
and fascism in the United States is raising its
ugly head again.
But we know that i t is
hose
-
impede our trade.
22
-
Moreover, Britain promises to
avoid trade controls that discriminate against
American products.
Britain agrees with us on
the principles of fair trade practices which are
to be effectuated by a proposed internati onal
trade organization.
The whole agreement is one
further step in our effort to put into effect the
determination of our people for a world in which
nations work and live together in peace and pros
perity.
The program of the Democratic Administration
on the home front is just as bold and dynamic as
our international program.
And our domestic
program is as essential to the winning of the
peace as i t is to making a better America.
We
-
21
-
The Financial Agreement is a sound investment
in world peace and prosperity*
American business
will reap dividends through its access to world
markets on a fair and equal basis*
Every section
of this country, every sector of our economy has,
in the end, a vital interest in our world trade*
The Financial Agreement will open markets in
England and many other countries to our exporters.
This means more exports for our farmers and manu
facturers, more jobs for our workers, more profits
for business, and a higher income for all of our
people.
The Agreement provides, as we desire, the
prompt removal of currency restrictions that
-
20
-
people s\>f the world want to
gether.
and live to
Therr leaders, suiting together around
the same table, chnn^ft; fa il them.
The second
fact is that thjrlOnite£LStates has emerged from
this war asiC great leader, commanding the respect
and the inope of the world.
America must retain —
and fo retain she must justify — her wbrld leader-
An essential and integral part of our program
for international economic cooperation is the
proposed Financial Agreement with Great Britain
This proposed Agreement is now before the Congress
for approval.
This Agreement, if approved, will
mean much to American business, agriculture, and
labor.
- 19 concluded at Savannah, Georgia, forty nations
put their heads together and agreed upon a ll steps
necessary for these institutions to begin operations.
Through these institutions, we hope to lay a solid
foundation for international economic cooperation
just as through the United Nations Organization,^
we hope to provide the basis for international
political cooperation.
Beyb!id<the fact that the World Fund and the
World Bank were brought to life at Savannah, that
meeting was further pr^pf of two facts which are
crystal/clear today*
The f irs t is that to secure
international cooperation we muet make the
discussion and conference process whrk*
The
-
18
-
means for continuing cooperation through the
International Bank for Reconstruction and Develop
ment, and through the International Monetary Fund.
The United States has proposed, in addition, an
International Trade Organization.
I should like to say here and now that the
people of St. Louis did their part 7 - and a large
part i t
in helping to bring the World Bank
and the World Fund into being.
You demonstrated
in a dramatic w a y thraugh^yo^F
find voiiJ?.._4at±aiLs^
yw w
happens when the people really make their
voice heard.
At the Inaugural Meeting of the Board of
Governors of the World Fund and Bank, recently
- 17 ,nf r n,1n
M
r
nr?a Aa nftf
Prosperity in this country and throughout the
world also depends upon the channels of trade
and commerce being open, carrying a high level
of profitable foreign trade.
Economic warfare
over limited trade is no foundation upon which
to erect a structure of lasting peace.
Rather .
our goal and the goal of every country must be
to eliminate the economic irritations and to
increase substantially the trade of the world so
that a ll can have more of a far greater total.
These things can be accomplished only by
genuine wholehearted cooperation among nations.
To bring them about, we have proposed and there
have been created by the United Nations the
-
16
-
The Democratic Administration has taken
and is taking many steps designed to carry out
the will of the American people for a peaceful
and prosperous world.
We know that there must
be economic reconstruction in the war-torn
countries of Europe and Asia.
Captal most be
provided to supplement their shattered resources
in order that they can restore their economy.
With their farms and factories improved, they
can produce more.
The peace and prosperity of
the post-war period will depend in large measure
on the attainment by all countries of full
production and high levels of income.
- 15(a) that we can have the conditions necessary for a
stable, enduring world peace.
Each country must
do its share in creating a prosperous world.
You
cannot raise a new generation dedicated to peace
in the ruins of bombed-out citie s.
You cannot
maintain American production and employment in
the midst of worid-wide depression.
looks to us for leadership.
The world
Let us set the
example in doing our shar^kto create a prosperous
3m *
I W B W
tage*»
• ^But more, by building a prosperous Gfr+*&**<*&**
>rld we are making the biggest contribution to
world peace that can be made. With God’ s help,
let us wage total peace like we waged total war.
- 15 economic warfare of the 1930fs, for example,
was part of the master plan for aggression by
Germany and Japan.
'The peoples of the world have begun to
realize how many neighbors they really have.
We have learned that the firs t outbreak of civil
war, of savagery or oppression anywhere in the
world will sooner or later, and usually sooner,
affect us.
And we have learned that international
peace and prosperity are indivisible, that they
must go hand in hand.
We have learned the hard
wayj by bitter experience.
It is only in a prosperous world, a world
free from the ravages of economic insecurity,
- 14 awaken some day to find that although we made
elaborate plans for a world political organization
to maintain the peace, we permitted within our
walls the Trojan Horse of economic warfare which
has so undemined the economic foundations of the
world that new Hitlers have arisen to lead their
countries to a false and a rtificia l prosperity
-d?
through aggression. ^We must forever bear in mind
the fact that armed conflict in this war followed
•
•
the Axis dictators* attacks on the economic front,
on the psychological front, on the political front
and on the home front.
Thus, while we tend to
associate the beginning of the war with Hitler*s
invasion of Poland, this was really only the final
phase of a war commenced years earlier.
The
- 13 political plane, whicii we call the "diplomatic”
front*
It means a war fought also on the monetary
and trade front, which we call "economic warfare”*
It means a war fought on the propaganda front, which
we call "psychological warfare”* It means a war
fought out in the production lines, which we call
the "home front”* It means war on every front known
to mankind.
That is precisely why we call i t "total
war”.
"Total peace” must be fought on these same
fronts.
We must, for example, strive for inter
national cooperation on economic problems as
strongly as we strive for international coopera
tion on political problems.
Otherwise we shall
-
12
-
woman and child — and more particularly their
leaders, for I believe the
s already
know — the fact that "peace* does not mean
"inaction" hut rather "action"; that i t does not
mean "rest" but rather "work”.
•thowg ftt,
To me the true
vve must wage total peace just as we
waged total war".
In waging this "total peace" i t is imperative
that we keep in mind that like "total war" total
peace has many fronts.
Total war is not merely
the armed conflict of two nation's or two military
forces.
Total war means conflict at every level.
It means a war fought between forces on a national
-
11
-
define "peace" as "the absence or cessation of
war, strife or discord”.
Our literature, our
histories, our newspapers and our conversation
have almost universally emphasized the passive
and negative features of the word "peace".
It
has the same lack of dynamic qualities that we
ascribe to the word "darkness" in defining i t as
"the absence of light".
This negative and passive
concept of "peace" is on the go.
totally routed.
It must be
"Peace" no longer can have the
connotation of "inaction" or of "rest".
America
and the whole world must forge a new definition
of "peace", one that portrays the dynamic quali
ties of "peace"; that brings home to every man,
have war or peace.
We must seek and employ
every means to wage a total peace.
A strong
United States is a significant part of the program
that makes more possible a lasting peace.
The
international hoodlum may be deterred in his
nefarious plans if the consequences are written
in plain language.
We must include preparedness
in our total effort to wage a total peace.
It
is good to remember this today, for today is
Army Day.
There is today a fundamental change in our
concept of peace.
that those who represent the people appreciate
this fundamental change.
Our dictionaries
- 9 These peSpieknow, as our people ^now, that
the attainment of world peace is not the automatic
result of winning the war.
The people know that
peace as well as prosperity does not come to
those who merely sit and wait.
Instead, the
people know in their hearts that we must wage
peace as we have waged war; it must be a full
effort; we must attack on a ll fronts; and we must
be ever vigilant.
Being ever vigilant to wage a*total peace
includes military preparedness against war. We
seek preparedness not because we are pessimistic.
But we know that war is not an Act of God. We
know that it is up to us as mortal beings to
-
8
-
a straightforward, honest man.
He is a hard
worker and^^is no fair weather worker.
He has
been called upon to face many difficult situations
and he has always emerged as their master.
task has added to his stature,
Each
lith a ll of his
dynamic ability is included a great spirit of
courage.
His loyalty is unsurpassed and he is
an outstanding team player.
In this connection,
I call attention to the fact that you can call
the roll of the Cabinet heads and you will find
each and every one playing on the team.
This
team is carrying out the principles and policies
established by Franklin Delano Roosevelt under
the able
Truman
- 7 And if* the position of a ll peoples throughout
mi n
u i 5ifA 11r frr on s mi ght be marie f h u t 1the re a-pe*
no bacio—feffegences»» I am confident that-piHin
folks all over the world have essentially the
same hopes and wishes as we do# They a ll want
to live together in freedom, peace, and security.
The people of America are meeting the
outstanding Missourian, Robert
problems of peace with the same courage and
determination as they met the problems of war,
and they are doing this under the leadership
- 6 -
There is a great deal of loose talk these
days which has the effect, whether intended or
not, of engendering fear in the hearts of the
peoples of the world — fear as to what the future
holds in store for them. Many, of little faith,
or by design, are wondering out loud whether
the end of this war is only an armistice of armed
conflict by a crippled and exhausted world.
I reject utterly and completely the notion
that the people of our nation have any justifiable
ground for fear.
The problems of the day, moreover,
cannot be met as well^ pannet
b e.solve
----- — —
in an atmosphere of fear.
ece ssa 1 7 , s ell'-¿¿Bp
«t^fn flifi1
fíe l e d h i s c o u n t r y t h r o u g h w a r u n t i l v i c t o r y
was assured.
He l e d th e p e o p l e s of th e w o r l d
u p to t h e h e i g h t s w h e r e t h e y a l l c o u l d see
p l a i n l y a g e n u i n e h o p e of n a t i o n s l i v i n g a n d
w o r k i n g to ge the r in pe ac e a n d pr os per it y.
President Roosevelt and President Truman
e x e m p l i f y the b a s i c r e a s o n f o r t h e s u c c e s s of
the Democratic Party; we are the outlets for
the will, the considered judgment, and the
strength of the people.
It is in the judgment,
'hjud?
w i ll , a n d s t r e n g t h of the [p ia ra f o l k s of A m e r i c a
t h a t the f u t u r e of A m e r i c a li es .
It is in the
judgment, will, a n d the st re ngt h of j p i » n | fo l k s
all over the w o r l d that our hopes for wo rl d peace
and wo rl d prosperity lie.
-4 H e h a s t h e a b i l i t y t o w e i g h e x p e r i e n c e , to a p p l y
what he has learned in/praetical solutions for
t h e p r o b l e m s of the da y*
He has vision, accepts
responsibility, and through all runs a sterling
honesty-of-purpose^** He believes in and he is
c a r r y i n g o u t th e p r i n c i p l e s a n d p o l i c i e s o f h i s
great predecessor*
officials was a
Ev er y one of his Cabinet
the R o o s e v e l t team.
Franklin Delano Roosevelt meant more to more
p e o p l e i n m o r e p l a c e s t h r o u g h o u t the e n t i r e w o r l d
than any other man our generation has known*
He
l e d h i s c o u n t r y f r o m a state of ec on omi c p a r a lys is
to a p o i n t w h e r e e v er y g r ou p was in a be tt er
p o s i t i o n than it h a d e v e r be en in hi story*
- 3 The determination and courage which Jackson
displayed in fighting the p e o p l e d battles was
r e a l l y the d e t e r m i n a t i o n a n d c o u r a g e of the
American people themselves.
This same determina
ti o n a n d c o u r a g e in f o r w a r d i n g t h e c a u s e of the
p e o p l e w a s o u t s t a n d i n g in the D e m o c r a t i c A d m i n i s
trations of Jefferson, Cleveland, Wilson, and
R o o s e v e l t , a n d is n o w b e i n g so e m i n e n t l y d i s p l a y e d
u n d e r the b r av e l e a d e r s h i p of P r e s i d e n t Truman.
P r e s i d e n t Truman, a g r e a t son of y o u r g r e a t
state, is a courageous American. Wh il e y o u
Mi ss our ia ns can m a k e a special claim u p o n him,
I k n o w that he is ^p ro duc t of A m e r i c a f r o m b o r d e r
to border.
He is a d e m o c r a t i c , s i n c e r e m a n .
-
2
-
a n d h i s f r i e n d s w e r e a l l of t h e p e o p l e w h o w e r e
d e v o t e d to the p u b l i c w e lf are .
As Franklin
Roosevelt once remarked of Andrew Jackson,
"It s e e m e d s o m e tim es that all w e r e a g a i n s t h i m -all but the pe o p l e of the U n i t e d S t a t e s . " As
President, Jackson was the p e o p l e ’s President.
Coming from the then West he represented
the whole country, a n d in so doing he was fearless.
He was not strong physically, but in spirit hi s
s t r e n g t h w a s the s t r e n g t h of ten, b e c a u s e h i s
heart h e l d an u n b o u n d e d h o n e s t y - o f - p u r p o s e .
That
h e a r t w a s a l s o f u l l of h u m a n i t y to b l e n d w i t h the
ef fi cie nc y a n d se lf -di sc ip lin e of a M a j o r General.
It is r e p o r t e d that the p a r t i n g a d v i c e
Andrew Jackson received from his mother was
"Make friends by being honest; keep them by
be in g steadfast; be truthful; be sincere; be
brave." M a n y years afterwards Jackson said,
" G e n t l e m e n , t h o s e w o r d s h a v e b e e n th e l a w of
my life."
The enemies which Jackson made by never
compromising these principles were many; all
those w h o so ught to ga in f o r t h em sel ve s at the
expense of the common g o o d joined forces against
him#
The friends which he ma de stood by him,
for his friendships were established upon a
sound base.
A n d «t h o p ey g'on a t h a b wo yt r“h i c
(The following address b y Secretary Vinson
before the Democratic City Committee of
St. Louis at the Jefferson Hotel, St. Loui
Missouri, is scheduled for delivery at
7:00 P.M., C.S.T., Saturday. April 6, 1946
and is for release at that time,)
»
TREASURY DEPARTMENT
Washington
FOR RELEASE, 7:00 P.M., C.S.T,,
Saturday, April 6, 1946
Press S e r vice
No., V~289
(The fol l o w i n g address b y S e c r e t a r y Vinson
b e f o r e the D e m o c r a t i c C i t y C o m m i t t e e of
St, Louis at the J e f f e r s o n Hotel, St. Louis,
Missouri, is scheduled for d e l i v e r y at
7:00 P,M«, C ,S.T., Saturday, April 6, 1946,
and is for release" at that time.)
It is r e p o r t e d that the p a r t i n g advi c e A n d r e w J a c k s o n
received f r o m his m o t h e r was "Make friends b y b e i n g honest;
keep t hem by b e i n g steadfast;
be truthful;
be sincere; be
b r a v e , ” M a n y years a f t e r w a r d s J a c k s o n said "Gentlemen,
those words have b e e n the law of m y life."
The enemies w h i c h J a c k s o n m a d e by n e v e r c o m p r o m i s i n g these
principles were many; all those who sought to gai n for t h e m
selves at the e x p e n s e of t he common good joined forces a g a inst
him.
The friends w h i c h he mad e stood b y him, for his f r i e n d
ships were e s t a b l i s h e d upon* a sound base, and his friends were
all of the people w h o were d e v o t e d to the public welfare.
As
Franklin R o o s e v e l t once r e m a r k e d of A n d r e w Jackson, "It seemed
sometimes that all w ere a g a i n s t h i m -- all but the peop l e of
the U n i t e d State s . "
As President, J a c k s o n was the p e o p l e ’s
President.
Coming fro m the then W est he r e p r e s e n t e d the whole
country, and in so d o i n g he was fearless,
He was n ot strong
physically, but in spirit his s t r e n g t h was the s t r e n g t h of
ten, b e c a u s e his heart h e l d an u n b o u n d e d h o n e s t y - o f - p u r p o s e .
That h e art was a lso full of h u m a n i t y to b l e n d w i t h the e f
ficiency a n d s e l f - d i s c i p l i n e of a M a j o r G e n e r a l .
The d e t e r m i n a t i o n and c o u r a g e w h i c h J a c k s o n d i s p l a y e d In
fighting the p e o p l e ’s ba t t l e s was really the d e t e r m i n a t i o n and
courage of the A m e r i c a n peop l e t hemselves.
This same d e t e r m i
n a t i o n and courage in f o r w a r d i n g the cause of the p e o p l e was
outstanding in the D e m o c r a t i c A d m i n i s t r a t i o n s of Jefferson,
Cleveland, W i lson, and Roosevelt, and is now b e i n g so e m i n e n t l y
display ed u n der the brave l e a d e r s h i p of P r e s i d e n t Truman.
President Truman, a g r e a t son of y o u r great state, is a
courageous American,
W h i l e y ou M i s s o u r i a n s can mak e a special
claim u p o n him, I know that he is pr o d u c t of A m e r i c a f r o m b o r
der to border.
He is a d emocratic, sincere man.
He has the
a b i lity to w e i g h experience, to a p p l y what he has le a r n e d In
2
pra c t i c a l solutions f o r the p r o b l e m s of the day.
He has
vision, a c c epts respon s i b i l i t y , a n d t h r o u g h a l l runs a s t e r
ling h o n e s t y - o f - p u r p o s e .
P r e s i d e n t Truman, like Jackson, is
the p e o p l e ’s Pre s i d e n t .
He b e l ieves in a nd he is c a r r y i n g
out t he p r i n c i p l e s a n d p o l icies of his g r e a t p r e d e c e s s o r .
Every one of his C a b i n e t officials was a l e a d e r in the
R o o s e v e l t team.
P r a n k l i n E e l a n o R o o s e v e l t m e a n t more to more p e o p l e in
more plac e s t h r o u g h o u t the entire w o r l d than a n y other man*
our g e n e r a t i o n has known.
He led his c o u n t r y f r o m a state
of economic par a l y s i s to a p o i n t w h e r e every g r o u p was in
a better p o s i t i o n than it had ever been in history.
He led
his co u n t r y t h r o u g h w ar u n t i l v i c t o r y was a s s ured.
He led
the peoples of the w o r l d up to the he i g h t s w h e r e t hey a ll
could see p l a i n l y a g e n u i n e hope of n a t i o n s l i v i n g a nd w o r k
ing t o g e t h e r in peace an d p r o s perity.
P r e s i d e n t R o o s e v e l t a n d P r e s i d e n t Truman e x e m p l i f y the
basic r e a s o n fo r the success of the E e m o c r a t i c Party; we are
the outlets for the will, the c o n s i d e r e d judgment, an d the
strength of the people.
It is in the judgment, will, a nd
s t r ength of the r e a l folks of A m e r i c a tha t the f u t u r e of
A m erica lies.
It is in the judgment, will, a n d the s t r e n g t h
of r e a l folks a l l over the w o r l d t hat our hopes f or w o r l d
peace and w o r l d p r o s p e r i t y lie.
T h e r e is a g r e a t deal of loose t a l k these days w h i c h has
the effect, w h e t h e r i n t ended or not, of e n g e n d e r i n g f e a r in
the hearts of the pe o p l e s of the w o r l d — - f e a r as to w h a t the
future holds in store for them.
Many, of little faith, or
by design, are w o n d e r i n g out loud w h e t h e r the end of this w ar
is only an a r m i s t i c e of a r m e d c o n f l i c t by a c r i p p l e d a n d e x
hausted world.
I
r e j e c t u t t e r l y a nd c o m p l e t e l y the n o t i o n t h a t the p e ople
of our n a t i o n have a n y justifiable g r o u n d for fear.
The pro b
lems of the day, moreover, c a n n o t be met as w e l l in an a t m o s
phere of fear.
A n d the p o s i t i o n of a ll pe o p l e s t h r o u g h o u t
the w o r l d is n o t b a s i c a l l y d i f f e r e n t f r o m our own.
I am con
fident that r e a l f o lks all over the w o r l d have e s s e n t i a l l y
the same hopes a n d wishes as we do.
The y a l l w a n t to live
together in freedom, peace, and security.
The p e o p l e of A m e r i c a are m e e t i n g the pr o b l e m s of peace
w i t h the same courage a n d d e t e r m i n a t i o n a^ the y m et the
problems of war, a n d the y are d o ing this u n d e r the l e a d e r s h i p
oi P r e s i d e n t Truman a nd the E e m o c r a t i c Party.
A t the h e a d of
tnat E e m o c r a t i c P a r t y is a n o t h e r o u t s t a n d i n g Missourian,
R o b e r t Hannegan.
3
a straightforward,
honest man.
He
is a h a r d w o r k e r and
manv
W ? f e r ’ He has b e e n c a lled » p o n ** face
m ny dif f i c u l t situ a t i o n s and he has always e m e r g e d as t h e i r
master.
bas a d d ed to his stature;
W i t h all of his
dynamic ^
y is in c l u d e d a great spirit o f courage,
His
loyalty
is u n s u r p a s s e d and he is an o u t s t a n d i n g t e a m player;
In this
call the C^ T 1? C t ^°ii I ^cabl a t t e n t i o n to the fact that y o u can
oil of the cabinet heads and y o u will find e a c h and
e v e r y o n e p l a y i n g on the team.
This t e a m is c a r r y i n g out the
Rnn^krpkS ^
P ? i lcl? S esta,:)1ished b y Franklin D e l a n o
Roosevelt u n d e r the able g e n e r a l s h i p o f H a r r y Si Truman.
Of » n i f f ! leaders know,
as o ur people know,
that
the a t t a i n m e n t
T P 1? * t h e a u t o m a t l c result of w i n n i n g the war,
k n ow that peace as well as p r o s p e r i t y does not come
hearts f f T f 7 S l t f n d w a l t ' Instead, the people k n o w in
The nenn-iP
t-e +
their
re!t b ^
f i i h l w e f“
he l f u H effort;
must be ever vigilant.
Being
st w a g e p e ace as we have w a e ed w a r ; it
we m u s t a t t a c k on all fronts;
and we
e ver vigilant to wage a total
oeace
includes m i l i t a r v
arePpes = i m i s t i f inR t / ar,), W ® f ! ® * P reP atea.ness not b e c a u s e we
p s^imistic.
But we k n o w that w a r is not an Act of G o d ; We
know that it is up
as m
o r t a l bueeimnggss to .
h a v e w a r or peace.
“if to us
v*© aci
wuruajt
A
s t r o n g U n it e d a ” t a h mpk y e V e f y ? e a n s t o w a£ e a total
t o t a l peace.
p e a c e '.
A
ro n g United s t a t e s
makes more po s s i b l e
is
a s ig n if ic a n t
p a r t o f t h e p ro g ra m t h a t
a l a s t i n g .peace,
The
internationffhood^
. w r l t t e ^ i n ^ i l r f 1? h l ® n e f a r i o u s P lans if the c o n s e q u e n c e s are
total off« E f
language.
We m u s t include p r e p a r e d n e s s in our
m
m iss
todav
today,
fn° t
EoT
-t 0Afal
eace'
for
d a y a is
r m y p Day.
p e aceT'*leit
1*
thl tLrsi
1
the people
appreciate
Jt is
remember
& :f'u n d a ^ien'tai change in c u r concept of
f ? ararnount imp o r t a n c e that those w ho rep r e s e n t
this f u n d a m e n t a l
change,
Our d i e t i o n a r
o r ^ lL ^ r d '-
and miw
p a s s iv e
P s iv e
P60u r 1 ? ?
eb E S n C e ° r c e s s ® t l ° n o f w a r f a r e '
*
^ l i t e r a t u r e , o u r h i s t o r i e s , o u r n e w sp a p e rs
ac ° r ® r S a h 0 n f f Ve a lm o s t u n i v e r s a l l y e m p h a s iz e d h h e
a n a n e g a t iv e f e a t u r e s o f th e w ord " p e a c e ”
I t ha a th ^
"darkn e s s " ° i n d definl quf p t i e ®Jjhst we a s c r i b e to*the wor d
,. ^
in d e f i n i n g it as "the a b s e n c e of light"
Thi«
K i S i X s a 1™ . « *
°r, "pe“ '"
T
» ,
"It
Z" n A? m e r i c a and the w h o l e w o r l d must
or It,
of
r e s t ";. o
m e r i c a ana the w h o l e w
Of "inaction" o r ^ f
^ i n a cat no«,
ion
forge
§SZÙ Pips?#* «Jrtr"'
* h“
■ » « » *•
th<
believenthehpeopieaal ““d® partlcufsr:Ly8their leaders^for”!
l
that,
^
uuu
i a ufier
it
6 ” does
p e a c e not
" does
me the true co n c e p t of
"We^must w 0 ffpCt!f!i ^
the^ t h o u g h t of P r e s i d e n t T r u m a n
wage total peace just as we w a g e d total war";
locan have the
In w a g i n g this "total peace" it is imperative that we
keep in min d that like "total war" total peace has m a n y
fronts,'
Total w a r is not m e r e l y the a r med c o n f l i c t of two
nations or two m i l i t a r y forces.
T o t a l w a r m e a n s conflict at
every level,'
It means a war fought b e t w e e n forces on a n a t
ional p o l i t i c a l plane, w h i c h we call the " diplomatic" front.
It means a w a r fought also on the m o n e t a r y and trade front,
w h i c h we call "economic warfare".
It means a w a r fought on
the p r o p a g a n d a front, w h i c h we call " p s y c h o l o g i c a l w a r f a r e " .
It means a w a r fought out in the p r o d u c t i o n lines, w h i c h we
call the "home front".
It means w a r on e v ery front k n o w n to
mankind.
That is p r e c i s e l y w h y we call it "total w a r " ,
"Total peace" m ust be fought on these same fronts.
We
must, for example, strive for in t e r n a t i o n a l c o o p e r a t i o n on e c o
nomic p r o b l e m s as
st r o n g l y as we strive for i n t e r n a t i o n a l c o
o p e r ation on p o l i t i c a l problems.
O t h e r w i s e we shall a w a k e n
some day to find that a l t h o u g h we made e l a b o r a t e plans for a
world p olitical o r g a n i z a t i o n to m a i n t a i n the peace, we p e r m i t t e d
w i t h i n our walls the T r o j a n Horse of economic w a r f a r e w h i c h has
so u n d e r m i n e d the economic foundations of the w o r l d that n ew
Hitlers have a r i s e n to lead t h eir cou n t r i e s to a false and a r t i
ficial p r o s p e r i t y t h r o u g h aggr e s s i o n .
We m ust f o r ever b e a r in m i n d the fact that armed conflict
in this w a r f o l l o w e d the Axis d i c t a t o r s ’ a t t a c k s on the economic front,, on the p s y c h o l o g i c a l front, on the p o l i t i c a l front,
and on the home front'.
Thus, while we tend to a s s o c i a t e the
b e g i n n i n g of the w a r w i t h H i t l e r ’s i n v a s i o n of Poland, this
was really only the final phase of a w a r c o m m e n c e d y e ars e a r
lier.
The economic w a r f a r e of the 1 9 3 0 rs, for example, was
part of the m a s t e r plan for a g g r e s s i o n b y G e r m a n y and Japan-,
'
The peoples of the w o rld have b e g u n to realize h o w m a n y
neighbors they real l y have.
W e have l e a r n e d that the first
outbreak of civil war, of s a v a g e r y or o p p r e s s i o n an y w h e r e in
the world will s o oner or later, and u s u a l l y sooner, affect us.
And we nav e l e a r n e d that i n t e r n a t i o n a l peace and p r o s p e r i t y
are indivisible,, that they must go hand in hand,
We have
learned the har d way, by b i t t e r experience-.
It is o n l y in a p r o s p e r o u s world, a w o r l d free f r o m the
ravages of economic, insecurity, that we can have the conditions
n e c essary for a stable, -enduring w o rld peace*.
Each country
must do its share in c r e a t i n g a p r o s p e r o u s world-.
Y o u cannot
raise a n e w g e n e r a t i o n d e d i c a t e d to peace in the ruins of
bombed-out cities-.
Y o u cannot m a i n t a i n A m e r i c a n p r o d u c t i o n and
employment in the m i d s t o f w o r l d - w i d e depr e s s i o n .
The w o r l d
looks to us for leadership.
Let us set the example in d o i n g
our share to build a p r o s p e r o u s A m e r i c a and to create a p r o s p e r
ous world.
B ut more, by b u i l d i n g a p r o s p e r o u s Am e r i c a and a
prosperous w o r l d we are m a k i n g the b i g g e s t c o n t r i b u t i o n to world
peace that can be made.
W i t h G o d ’s help, let us w age total
peace like we w a g e d total war.
5
The D e m o c r a t ic A d m in i s t r a t i o n h a s t a k e n a n d ’ i s t a k in g many
s t e p s d e s ig n e d to c a r r y o u t th e w i l l of* th e A m e ric a n p e o p le D or
a p e a c e f u l and p r o s p e r o u s w o r ld .
We know t h a t t h e r e m ust he
e co n o m ic D e c o n s t r u c t io n i n th e w a r - t o r n c o u n t r i e s o f E u ro p e and
A s ia .
C a n i t a l m ust he p r o v id e d to s u p p le m e n t t h e i r s h a t t e r e d
r e s o u r c e s 1 i n o r d e r t h a t they c a n r e s t o r e t h e i r econom y.
W it h
t h e i r fa rm s and f a c t o r i e s im p ro v e d , t h e y ca n p ro d u c e m o re .
The
p e a ce and p r o s p e r i t y o f th e p o s t - w a r p e r io d w i l l d ep e n d i n
l a r g e m e a s u re on th e a t t a in m e n t h y a l l c o u n t r i e s o f f u l l p r o d u c
t i o n and h ig h l e v e l s o f in c o m e .
P r o s p e r i t y i n t h i s c o u n t r y and t h r o u g h o u t th e w o r ld a l s o
d ep e n d s u p o n th e c h a n n e ls o f t r a d e and com m erce b e in g o p en ,
c a r r y i n g a h ig h l e v e l o f p r o f i t a b l e f o r e i g n t r a d e . ^E co n o m ic
w a r f a r e o v e r l i m i t e d t r a d e i s no f o u n d a t io n upon w h ic h to
e re ct a s t ru c tu re o f la s t in g p eace.
R a t h e r o u r g o a l a n d #th e
g o a l o f e v e r y c o u n t r y m ust be to e l i m i n a t e th e e co n o m ic i r r i
t a t i o n s and to i n c r e a s e s u b s t a n t i a l l y th e t r a d e o f th e w o r ld
so t h a t a l l c a n h a v e m ore o f a f a r g r e a t e r t o t a l .
T h e s e t h in g s ca n be a c c o m p lis h e d o n ly b y g e n u in e w h o le
h e a rte d . c o o p e r a t io n among n a t i o n s .
To b r i n g them a b o u t , we^
have p ro p o s e d and t h e r e h a v e b e e n c r e a t e d b y th e U n it e d N a t io n s
th e m eans f o r c o n t i n u i n g c o o p e r a t io n t h r o u g h th e I n t e r n a t i o n a l
Bank f o r R e c o n s t r u c t io n and D e v e lo p m e n t, and t h r o u g h th e I n t e r
n a t io n a l M o n e ta ry i u n d . The U n it e d S t a t e s h a s p r o p o s e d , i n
a d d it io n , an I n t e r n a t i o n a l T r a d e O r g a n iz a t i o n .
I
s h o u ld l i k e to s a y h e r e and now t h a t th e p e o p le o f
S t . L o u is d id t h e i r p a r t , and a l a r g e p a r t i t w as, in h e lp in g
to bring th e W o rld B an k and th e W o rld F u n d i n t o being»
You d e m o n s tra te d i n a d r a m a t ic way w hat h a p p e n s when th e
p e o p le r e a l l y make t h e i r v o ic e h e a r d .
A t th e I n a u g u r a l M e e t in g o f th e B o a rd o f G o v e r n o r s o f th e
W o rld fu n d and B a n k , r e c e n t l y c o n c lu d e d a t S a v a n n a h , G e o r g ia ,
f o r t y n a t io n s p u t t h e i r h e a d s t o g e t h e r and a g r e e d u p o n ^ a ll
s t e p s n e c e s s a r y f o r t h e s e i n s t i t u t i o n s to o e g in o p e r a t i o n s .
T h ro u g h t h e s e I n s t i t u t i o n s , we hope to l a y a s o l i d f o u n d a t io n
f o r i n t e r n a t i o n a l e co n o m ic c o o p e r a t io n , j u s t a s t h r o u g h th e
U n it e d N a t io n s O r g a n iz a t io n we hope to p r o v id e th e b a s i s f o r
i n t e r n a t i o n a l p o l i t i c a l c o o p e r a t io n .
An e s s e n t i a l and i n t e g r a l p a r t o f o u r p ro g ra m f o r i n t e r
n a t i o n a l e co n o m ic c o o p e r a t io n i s th e p r o p o s e d F i n a n c i a l A g r e e
ment w it h G r e a t B r i t a i n .
T h is p r o p o s e d A g re e m e n t i s now b e f o r e
th e C o n g re s s f o r a p p r o v a l .
T h is A g re e m e n t, i f a p p r o v e d , w i l l
mean m uch to A m e ric a n b u s in e s s , a g r i c u l t u r e , and l a b o r ,
6
The Financial A g r e e m e n t is a sound investment in world
peace and pros p e r i t y *
A m e r i c a n bus i n e s s will reap d i v i d e n d s
t h r o u g h its access to w o r l d m a r k e t s on a fair and equal basis.
E v e r y s e c t i o n of this country, e v e r y s e c t o r of our e c o nomy
has, in the end, a vital interest in our w o r l d trade.
The
Financial A g r e e m e n t will open m a r k e t s in E n g l a n d and m a n y
other c o u n tries to our exporters.
This m e a n s more exports for
our farmers and m a n u f a c t u r e r s , more jobs for our workers, m ore
profits for business, and a h i g h e r income for all of our
people.
The A g r e e m e n t provides, as we desire, the prom p t removal
of c u r r e n c y rest r i c t i o n s that impede o u r trade.
Moreover,
B r i t a i n pr o m i s e s to avoid trade controls that d i s c r i m i n a t e
against A m e r i c a n products.
B r i t a i n agrees w i t h us on the
p rinciples of fai r trade p r a c t i c e s w h i c h are to be e f f e c t u a t e d
by a p r o p o s e d i n t e r n a t i o n a l trade or g a n i z a t i o n .
The w h ole
agreement is one f u r t h e r step in our effort to put into effect
the d e t e r m i n a t i o n of our people for a w o r l d in w h i c h n a t i o n s
work and live t o g e t h e r in peace and p rosperity.
The p r o g r a m of the D e m o c r a t i c A d m i n i s t r a t i o n on the home
front is just as b o l d and d y n amic as o ur i n t e r n a t i o n a l program.
And our d o m e s t i c p r o g r a m is as e s s e ntial to the w i n n i n g of the
peace as it is to m a k i n g a b e t t e r A m e rica.
We k n o w today,
what we should have l o n g known, that o u r pr o g r a m s in the d o m e s
tic field and in the foreign field are I n t e r d ependent.
The f e a r - m o n g e r s are at w o r k t o d a y on the home front just
as they are at w o r k on the w o r l d front.
The " b o g e y ” of the
spread of c o m m u n i s m a n d f a s c i s m in the U n i t e d States is raising
its u g l y hea d again.
But we k n o w that it is c h i e f l y those who
have no f a i t h in A m e r i c a and the A m e r i c a n w ay of d o i n g things
or w ho are m i s i n f o r m e d who e n t e r t a i n any s uch fear.
If we m a k e the A m e r i c a n s y s t e m of free e n t e r p r i s e w o r k
here at home in time o f peace w i t h the same o u t s t a n d i n g success
that it a c h i e v e d in time of war, we n e e d have no r e a s o n to fear
the p r o p a g a n d a o f an y s y s t e m that p r o m i s e s a short-cut to
Utopia.
O u r a n s w e r to a n y such threat is p r o d u c t i o n to cap a c i t y
in peace as we have p r o d u c e d to c a p a c i t y in war, p r o v i d i n g full
employment and a b e t t e r lif e for all.
This we cannot so well
achieve If we live in f e a r of w a r or in fear of this or in fear
of that.
I have no fear that the A m e r i c a n p e ople will ever
live in fear.
I
-
7
There are those a m ong us, however, w h o u n w i t t i n g l y play
into the hands of the f e a r - m ongers,
These are the persons
who have a d e f e a t i s t attitude w i t h respect to our economic
system.
T h e y tell us, for example, that the free e n t e rprise
system m a k e s periods of u n e m p l o y m e n t n e c e s s a r y . The A m e r i c a n
people, however, will not be taken in b y the a s s e r t i o n s .of
either the f e a r - m o n g e r s or the defe a t i s t s .
T h e y have
greater f a i t h in the A m e r i c a n s y s t e m than that.
T h e y will
not be p l a c e d in the false di l e m m a of c h o o s i n g b e t w e e n full
employment and a free society.
T h e y k n o w that d e p r e s s i o n s
are not the price of freedom.
And they k n o w that those who
think this wray are d o i n g no favor to the cause of freedom.
Our s y s t e m of free ente r p r i s e has e n a b l e d the U n i t e d
States to o u t - p r o d u c e e v e r y o t h e r c o u n t r y in the w o r l d and to
win this mos t d e s t r u c t i v e of all wars w i t h a m i n i m u m loss of
Am e r i c a n lives and the m a x i m u m reliance on the p r o d u c t s of
industry.
Our s y s t e m of free ente r p r i s e will b u i l d us an even
greater nation.
The A m e r i c a n s y s t e m of free e n t e r p r i s e will
enable us to w i n the peace even t h o u g h some of those w h o c l a i m
to love it so d e a r l y keep ins i s t i n g that i t m u s t p r o d u c e d e
pressions to realize its n a t u r a l beauty.
There are even those among us who c l a i m that the goal of
2,700,000 n e w homes by the end of 1947
- w h i c h is the goal
set by the D e m o c r a t i c A d m i n i s t r a t i o n
is too hi gh.
Cer
tainly, the goal w h i c h we have set for h o u s i n g is no more b e
yond the c a p a c i t y of A m e rica tha n the goals w h i c h wer e set
for guns and ships and tanks and planes d u r i n g the war.
You
remember wha t the f a i n t - h e a r t e d said w h e n this A d m i n i s t r a t i o n
said 25,0 0 0 planes a year.
Y o u will recall what the p e s s i m i s t s
said'"when the goal was raised to 50,000.
And fi n a l l y y o u will
remember that those w ho lacked v i s i o n reg a r d e d 1 0 0 , 0 0 0 planes a
year as fantastic.
Yet, we d id cross that goal line.
If we who r e p r e s e n t the people show the same courage and
d e t e r m i n a t i o n in a t t a c k i n g the h o u s i n g p r o b l e m as the A m e r i c a n
people showed in a t t a c k i n g the pr o b l e m s of w a r , ' a n d as the
American people are p r e p a r e d to show in a t t a c k i n g the p r o b l e m s
of peace, then we w i l l r e a c h our goal.
A n o t h e r i m p o r t a n t m a t t e r w h i c h the .defeatists a m o n g us
are trying to b l o c k i n v olves the issue as to w h e t h e r in this
great land of ours m i l l i o n s of w o r k e r s should receive^ only
40 cents an h o u r w h i c h is $16 a week, w h i c h Is l e s s than f 8 5 0
a year.
Persons can d e b a t e for hours a b out t he so-called
economic m e rits of a n in c r e a s e in the m i n i m u m w a g e .
But the
8
b ig p o in t to rem em ber i s th e im p ro v e m e n t o f th e A m e ric a n
s t a n d a rd o f l i v i n g , and o f p e r m i t t in g a l l some r e s p e c t a b le
s h a re i n i t f The A m e ric a n p e o p le w ant th e m inim um wage l i f t e d ,
and y o u r A d m in i s t r a t i o n i s c a r r y i n g o u t th e w i l l o f th e p e o p le ,
A ndrew J a c k s o n was g r e a t i n a c t i o n , g r e a t i n c o u r a g e ,
and g r e a t i n a ^ d e e p u n d e r l y i n g s e n s e o f th e r i g h t s o f man.
I t h a s b e e n s a id o f h im t h a t he w o u ld t a k e i n i t i a t i v e and a c
c e p t r e s p o n s i b i l i t y b y th e c a r l o a d .
L ik e Ja ck so n * P r e s id e n t
Truman i s n o t a f r a i d to t a k e a c t i o n and a c c e p t r e s p o n s i b i l i t y .
He knows t h a t th e p e o p le o f A m e ric a a r e n o t a f r a i d .
The hope o f to m o rro w r e s t s w it h y o u , th e p e o p le .
You
know y o u r w ay, and th e ro a d ah e ad i s s t r a i g h t and b ro a d a l
th o u g h t h e r e a r e many h i l l s to c l im b .
The D e m o c r a t ic P a r t y
w i l l c o n t in u e to h e lp yo u a t t a i n th e g o a ls f i x e d b y y o u r
c o n s id e r e d ju d g m e n t.
0O 0
TREÁSUKX
Press Servies
fi
Ÿ —
The Secretary of the Treasury announced last evening that the tenders for
$1*300,000,000, or thereabout*, of 91-day Treasury M U * to he dated April 11 and to
nature July 11, 1?1*6, ehich sere offered on April 5, 191*6, ter* opened at the federal
Reserve Banks on April 8*
The details of this issue are as follows;
total applied for - $2,Q50,3J*9,000
fötal accepted
— 1,31?*056,000
Average price
(includes $1^,353,000 entered on a fixed-price
basis at 99»90§ and accepted in fall)
« 99*90$/ Equivalent rate of discount approx* 0*37$% per annua
Range of accepted competitive bids:
99*997 Equivalent rate of discount approx* 0.368$ per annua
99.9®$
lam
»
«
s
e
»
o. 376$ *
*
percent of tbs amount bid for at the lev price vas accepted)
federal Reserve
District
Total
Applied for
fetal
Accepted
Boston
Ser fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. loáis
1
H ,i2 5 ,o o o
1 ,5 2 6 ,3 7 1 ,0 0 0
4 o ,5 i5 ,o o o
2 7 ,2 9 5 ,0 0 0
1 6 ,4 3 0 ,0 0 0
1 2 ,7 7 5 ,0 0 0
2 9 1 ,5 9 8 ,0 0 0
2 0 ,0 6 0 ,0 0 0
1 ,7 4 5 ,0 0 0
1 7 ,1 9 0 ,0 0 0
1 2 ,2 6 0 ,0 0 0
6 9 ,2 8 5 ,0 0 0
$
Kansas City
Palls*
San francisco
9,082,000
9 5 6 ,2 4 1 ,0 0 0
34,3 0 2 ,ooo
2 0 ,7 7 6 ,0 0 0
1 3 ,3 9 6 ,0 0 0
1 2 ,5 2 5 ,0 0 0
1 8 0 ,2 4 7 ,0 0 0
1 3 ,2 9 5 ,0 0 0
1 ,7 4 5 ,0 0 0
1 5 ,2 2 2 ,0 0 0
9*800,000
5 0 .4 2 5 .0 0 0
$1*317*056,000
TR E A S U R Y D E P A R T M E N T
Washington
P OR RELEASE, M O R N I N G N E W S P A P E R S ,
Tuesday, A p r i l 9, 1946._______ __
P r ess S e r v i c e
No. Y - 2 9 0
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d l a s t evening that
the tenders f or $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y
T r e a s u r y bills to be d a t e d A p r i l 11 a n d to m a t u r e July 11, 1946,
w h i c h were o f f e r e d on A p r i l 5, 1946, were o p e n e d at the P e d e r a l
Re s e r v e Banks on A p r i l 8.
The details
of this
issue are as follows:
Total applied for - $2,050,149,000
Total a c c e p t e d
1,317,056,000
(includes $ 4 4 , 3 5 3 , 0 0 0
e n t e r e d on a f i x e d - p r i c e basis
a t 99*905 a n d 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 r a t e of d i s c o u n t *
approx, 0 . 3 7 5 % per a n n u m
Range
of a c c e p t e d c o m p e t i t i v e
Hig h
bids:
9 9 * 9 0 7 E q u i v a l e n t r a t e of d i s c o u n t
approx. 0 . 3 6 8 % per a n n u m
- 99*905 E q u i v a l e n t rat e of d i s c o u n t
approx. 0.37 6 % per a n n u m
L°w
(59 p e r c e n t of the a m o u n t bid fo r at the l ow p r i c e was a c c e p t e d )
Pederal Reserve
District
Total
A p p l i e d for___
Accepted
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas. C i t y
Dallas
San B r a n c i s c o
$
$
' 14,125,000
1,526,871,000
40.515.000
27.295.000
.
1 6 430.000
12.775.000
291,598,000
20.060.000
1,745,000
17.190.000
3 4 ,3 0 2 , 0 0 0
20.776.000
13.396.000
1 2 . 525.000
.
180 247.000
69.285,000
13.295.000
1.745.000
15.222.000
9.800.000
50,425,000
$ 2 ,050 ,149,000
$1,317,056,000
.
12 260.000
TOTAL
9,082,000
956.241.000
- 0 O 0-
That position of predominance In the financial and
eoonomlo field brings with i t important responsibilities.
Whether we like i t or not, leadership in international
eoonomlo affairs is now ours.
The world urgently depends upon us to fu lfill our
obligation of world leadership*
I t depends upon us to
expand and pursue a policy of enlightened self-interest,
a policy that in the long run will operate to the advantage
of the American people even more than to that of foreign
countries*
Other countries may stand to lose more from
depression and political insecurity, but we stand most to
gain from world peace and world prosperity.
The proposed loan to the United Kingdom is a good
example of an American policy of enlightened self-interest.
I t is precisely the sort of Investment we should make under
present circumstances and the kind of investment which will
yield benefits far in excess of the interest payments we are
echeduled to receive.
If Oongresaapproves the Agreement, we shall be doing
a great service to the rest of the world and we shall be
doing a greater service to ourselves# nurrm itihnugh tho rtrrl*
its
a-*wMrwr*r
is not
Our program for interna tional eeonomio cooperation
depends on having England adopt the fa ir trade and currency
polioies for which we stand.
England*a actions set the
pattern for the whole British Empire and the sterling area.
These countries account for more than a third of the
international trade of the entire world.
are our best customers*
These countries
American producers, the producers
in a ll countries, need a fa ir and equal chance in these
markets and in all the markets of the world*
A world that trades on a fa ir basis is a prosperous
world,
A prosperous world is likely to be a peaceful world*
That Is why the Financial Agreement with England is a vital
part of our whole program for peace and prosperity*
So far 1 have been speaking entirely of the direct
trade benefits to the United States that will result from
the adoption of the Financial Agreement.
But i t would be
unfortunate to assume that suoh gains are the only, or
even the chief benefits.
We must remember that the United States Is the leading
financial country in the world.
It is by far the richest in
productive power, in technical skills, and in business
know-how.
We have more gold than the rest of the world put together*
and we o&n out-produce, out-sell and out-finance any other
nation or even almost any combination of nations.
- 13 This program reco g n ises th a t i t is not enough to get
co u n trie s to agree on p o l i t i c a l co o p eratio n .
of co u rse .
But we must do more than t h a t ,
That is important
W© must support all
our e f f o r t s fo r peace by providing an environment of s ta b ility
» '-i'v
’• '
*
and order in in te rn a tio n a l economic r e l a t i o n s .
We must remove
I '
the economic causes of c o n f l i c t .
In such an environment, peace
can f lo u r is h .
The United Nations have gone a long way toward estab lish
ing such an economic foundation fo r p eace.
They have agreed
on co o p erativ e measures to provide the c a p ita l f o r re sto rin g
/
I
r I Ifx/
1 | 4;
the economies of w ar-torn c o u n trie s .
They have agreed on the
p rin c ip le s of f a i r currency p r a c tic e e s s e n tia l to international
trad e and investm ent.
And they are now considering the adoption
of p rin c ip le s of f a i r trad e p ra c tic e th a t w ill reduce the
b a r r ie r s and elim in ate the r e s t r i c t i o n s th a t prevent an expan
sion of world tr a d e .
This is a program in which the people of
a l l co u n trie s have placed th e i r hopes fo r o rd erly and beneficial
economic r e l a t i o n s .
12 -
This credit will remain open for use by England until
1951*
She must then begin to repay the credit with interest
at 2 percent.
The repayment will be in the form of 50 equal
annual payments covering principal and Interest.
The
payment of principal due each year must be paid without
qualification.
However, if world trade should become
severely depressed, the
in that year would be
as soon as
trade recovers.
As you can see, the credit is not a g ift.
to be repaid with interest.
I t will have
And the credit will not mean -
that England can import all she wants.
Consumption in
England will s till have to be kept down to something like
war-time austerity.
And now I come to my last point.
The Financial Agreement
with England is an essential part of our program for a
peaceful and prosperous world.
The people of the United States and the United Nations
have agreed on a program in which countries cooperate to
maintain peace and prosperity.
The United Nations Organisa
tion, with its Security Counoil, General Assembly, Interna
tional Court of Justice, and Social and Economic Council,
constitutes one side of this program.
The Pood and Agri
cultural Organization, the International Monetary Fund and
the International Bank for Reconstruction and Development,
and the proposed International Trade Organization constitute
another side of the same program.
XI •
6 # England will support the American proposal for an
International Trade Organisation to reduce trade barriers
and eliminate trade restrictions.
In this way England
supports our polioy of expanded trade, with a ll countries
having access to world markets
In the long run, these fair trade and currency practices
will help England, too.
With expanded world trade, British
exporters will find better markets.
But i t will take several
years before British exports are increased sufficiently to
bring her foreign exchange receipts up to the neoessary
level.
Tn
thn mnnntilmri^
«V
l
****** + n»
a *.
eat)eiftfel»afr*»to lujijpiupWITHT?
England can undertake the various measures to liberate
trade channels that I have Just referred to only if she can
get help in paying for her essential imports while her trade
is being restored.
other countries.
Part of the help she will get from
But most of i t can oome only from the
United States*
This is the seoond problem that is met by the Financial
Agreement.
If Congress approves the Agreement, the United
States will open a line of credit of
7 r ° / OO Oj&Ob
$3, 3/^ billtcra
which England can draw to pay for her imports.
against
None of the
credit can be used to pay any of Britain’ s outstanding debts.
These will have to be met from other resources.
The credit
we are proposing to extend to her can be used only for
imports and other current payments.
10
2.
-
Within a year B r ita in w ill d isso lv e the d o lla r pool.
The money th a t the s t e r l in g area co u n trie s g et f o r th e ir ex
p o rts to the United S ta te s could be spent here without getting
an a llo c a tio n from England,
That means th a t India could use
d o lla r s to buy American machinery Instead of being forced to
buy E n glish machinery.
3.
Exports of goods and s e rv ic e s from the United States
to England w ill be paid fo r In d o lla r s , o r i f paid in pounds,
the money can be converted into d o lla r s by American exp orters.
That means the American Individuals and companies which in the
p ast have experienced considerable d i f f i c u l t y in g e ttin g their
cu rre n t earnings from B r ita in w ill now be paid in d o lla r s .
«*.
The blocked s t e r l in g balances w ill be s e ttle d by
England and the co u n trie s concerned.
Any payments on these
b alan ces, whether now or in l a t e r y e a rs , w i l l , however, be free
fo r making purchases in any country, Including the United
States
That means th a t co u n tries owning those balances can buy more
from u s, while England can s e l l more fo r cash .
5.
England*s import c o n tro ls w ill be adm inistered In a
l||g
'H■i
manner which does not d iscrim in ate a g a in st American products.
That means England w ill not keep out American f r u i t s and nuts
while p erm ittin g th ese same products to be purchased from
P o rtu g al, Egypt or India
j
B r ita in , th e r e f o r e , needs c r e d i t ; th a t f a c t is inescapable,
Two a lte r n a tiv e s a re a v a ila b le .
E ith e r the B r itis h can receive I
some a s s is ta n c e from ou tside the s t e r l i n g area and abandon the
war-tim e r e s t r i c t i o n s ; or they can continue and extend these
r e s t r i c t i o n s , pull in s t i l l fu rth e r th e i r alread y tig h t b e lt,
•\
\
! £
-/--y-''- / ;' l■.
and fo rce a d d itio n a l a s s is ta n c e from the s te r lin g a r e a .
This
l a t t e r course would s e rio u s ly Impede world re co v e ry , and our
i 1 y'\
J
own tr a d e .
/
-
■/•;
In our own in te r e s t we must make i t p ossib le for
i
\■
England to abandon the war-tim e currency and trad e re strictio n s
I \ i i•■
and Jo in with us and the United Nations in a program of Inter/
Zh I
‘ \1
n a tio n al economic/ co o p e ratio n .
The F in a n cia l Agreement meets th ese two problems in a
manner th a t Is advantageous to both c o u n trie s .
Under the
Agreement England undertakes to remove the r e s t r i c t i o n s that
s t i f l e trad e and the d iscrim in atio n s th a t put our producers
a t a disadvantage in a l l B r itis h m arkets.
w ill d o:
1.
|
Here is what England
i
Within a year England ag rees to make a l l s te rlin g
a r is in g from cu rre n t trad e c o n v e rtib le .
If Mexico and Egypt
exp ort to England they w ill be able to use the money they got
to buy the currency of any cou n try.
That means they could
con vert the s t e r l in g in to d o lla r s and buy rad io s or refrigerator
o r machine to o ls , in the United S t a t e s .
Here are the essential facts*
The war has seriously
Impaired England* s International economic position.
In the
next few years, England cannot earn enough to pay for her
most essential Imports*
Because her Industries were converted to war production,
the quantity of British exports by the end of the war was
only one-third as much as In pre-war years*
British net
Income from foreign investments is now only half of what It
was before the war beoause some of these investments had to
be sold and beoause England incurred a large foreign debt*
The British merchant marine is not yet up to Its pre-war
level*
Every important source of British Income from abroad
has been substantially curtailed^
Beoause of her reduced receipts of foreign exchange,
and her heightened expenditures, i t is inevitable that
England will have to pay out during the next few years
much more than she can now afford, even if they maintain
a very restricted standard of living*
The total deficit
during the next few years in the British international
accounts has been variously estimated at l^fto
or even more.
We estimate that i t will be 3 to 5 years
before British receipts of foreign exchange will equal
her out-payments*
.
Though, e v e n tu a lly , most of the d o lla r s w ill find th eir
way back to the United S ta te s , the way In which they do so
— whether to purchase gold, or Invest In our s e c u r i t i e s , or
as d ep o sits In our banks, o r the purchase of c e r ta in materials
r a th e r than o th ers — does make a d iffe re n ce to u s .
I t does
mean th a t many American producers are not g e ttin g a f a i r
chance to s e l l In s t e r l in g a re a m arkets.
Along with th ese fin a n c ia l c o n tro ls Imposed by B rita in ,
th ere a re d ir e c t c o n tro ls of imports in a l l s t e r l in g area
c o u n trie s .
And th ese c o n tr o ls , lik e import lic e n s e s , are used
to cu t down the amount of imports th a t must be paid fo r in
fo re ig n exchange.
In p r a c t i c e , th i s meant keeping to a minimum
imports from co u n trie s th a t had to be paid fo r with d o lla rs .
One of our o b je c tiv e s in the n e g o tia tio n s was to secure
$l-f ' ; /,'j> ;.•f \
f
agreement bn the prompt elim in atio n of th ese w ar-tim e r e
s t r i c t i o n s , so th a t American e x p o rte rs could have a cce ss to
a l l th e markets of the world on a f a i r and equal b a s is .
-"f
* :‘
/Jf\Ai\
/
N eith er England nor the s te r lin g are a co u n trie s want to keep
■ W
J i\
th ese r e s t r i c t i o n s .
But England w ill have to continue these
R e s tr ic tio n s unless she can find some o th er means of
l\
securing
I
the imports whici^ provide the bread and the work fo r her
p eople.
And thatj Is the second problem underlying the
Agreement.
I
j
Financial
The sterling area dollar pool likewise Is harmful
to us#
I t oame about this way,
outside the sterling area#
England had to buy goods
Many commodities we shipped
to England had to be paid for by England in dollars*
And that was true in other oountries, too.
To pay for
these goods England had to mobilise a ll her dollar
resources.
The British sold many of their American
Investments and got dollars in this way.
And England
arranged to have the dollar receipts of the sterling
area countries pooled in London and allocated by London,
J
For example, when an Indian exporter sells goods in
the United States, he turns the dollars over to the Reserve
Bank of India.
sterling*
Thee© dollars are then sold to England for
And this happens in a ll of the sterling area
countries that have net dollar receipts*
In this
a ll the dollar holdings of the sterling area are pooled
1»
tirrrtTn.
Tfr»rr> w h e n t r y
ln_thg a
on the basis of the most essential needs.
r)
To conserve dollars,
funds are not allocated to buy goods in the United States
that can be secured in any sterling area oountry.
The
American producers of those particular goods are shut out
of the sterling area markets*
That brings us to blocked sterling»
England had to go
on buying goods in the sterling area countries and nesting
the oosts of her armies in India, Egypt and other countries.
England bought the goods and met her war expenses in these
countries by paying in sterling*
But England couldn’ t
allow those countries to convert the sterling they received
into dollars*
England just didn’ t have enough gold and
dollar reserves*
Bor could England permit them to buy
British goods with the sterling*
exports to those countries*
She oould not spare
She needed a ll her productive
resouroes to conduct the war.
So the countries acquiring
sterling oould not even use much of I t to spend in England*
In effect, the sterling those countries received was for
the most part blocked from use» though substantial amounts were used
to pay off loans or buy back British held foreign securities*
The amount of such blocked sterling accumulated during
the war was enormous*
They now amount to more than |13 billion«
What Is done about these blocked sterling balanoes will mean
a good deal to American trade*
We don't want England saying
to India and the other countries holding blocked sterling:
“You can have these balanoes freed only to buy goods in
England*11 We don’ t want India or Egypt to keep saying to
us*
NWe would like to buy American goods, but we cannot
afford i t .
Most of our reserves are blocked in England,
and we oan use i t only to buy British products*11 But that
Is exactly what will happen if those blocked, balanoes are
not properly settled*
You hear a good deal about these war-time restrictions
- particularly the sterling arfca, blocked sterling and the
>
;
dollar pool* A brief explanation of how they operate will
show how they affect American business*
The sterling area Includes the countries of the
British Empire, except Canada, and some countries In the
Hear East and elsewhere.
They do much of their business
with England, and they keep most of their monetary reserves
in the form of sterling In England.
Before the war, these
reserves oould be used to buy goods a ll over the world In the United States, Latin America, the Far Eaet, anywhere.
If Australia wanted to buy American cotton before the war.
It sold sterling for dollars.
J
During the war, however, the sterling area took on
some new features*
Because England didn*t have enough gold
and dollar/Teaeriek, she could no longer permit the free
conversion cdTiterllng reserves into dollars*
foroed to make sterling inconvertible.
She was
That meant Australia
couldn’ t use her sterling to buy American cotton.
She oould
use her sterling only in the sterling area; she could buy
cotton in India or Egypt.
In short, while trade among the
sterling area countries could continue, trade of the sterling
area countries with the United States was restricted.
.*»» jj —
The pre-war balance between British receipts in-payments from abroad - and expenditures - out-payments
abroad - was completely disrupted* Xou know the reasons.
Even before the war, the growing tension required huge
British purchases in this country fcr rearmament.
Her
gold and dollar holdings fe ll from more than P§ billion
to about |2-l/2 billion between the Munich crisis and the
invasion of Poland.
When the war began, Britain1s demand
for Imports greatly increased, and she had to finance &
part of the war effort of various parts of the British
Empire.
At the same time her foreign exchange receipts -
her exports, her income from Investments and her shipping
services - were drastically curtailed.
3o great was the
resultant drain on her cash reserves that by the time we
began our lend—
lease aid, her remaining gold and dollar
holdings were almost a ll used up.
With the war on, England took strong measures to mobilize
and conserve foreign exchange reserves for essential war
purposes and to exclude or limit imports not urgently needed.
These war-time ourrenoy and trade measures are s t i l l in effect.
We recognize that they were neemrsary in the war emergency.
But we also know that in time of peace such measures can be
harmful to world trade and prosperity.
One of our objectives
in the discussions with the British on the financial agreement
was to secure the speedy removal of these war-time currency and
trade restrictions*
Before the war, England was the largest Importing
country In the world.
She has for generations depended
heavily upon Imports for her standard of living.
She
bought overseas most of the food for her people and the
raw materials for her Industries»
Her whole economy was
geared to earn enough from her foreign business to pay for
these essentials of her eoonoalo life .
She paid for half
of her imports by exports of manufactured products;
another fourth of her imports was paid for with the
net proceeds from her foreign investments, and the
remaining quarter was paid for out of income from her
i
shipping. Insurance, banking, brokerage and other services.
She earned more from her shipping end world banking
services than any other country, and had much larger
foreign investments than any other country,
J
Foreign trade played so v ital a role In British
economic life that her very stability and prosperity
rested upon her ability to keep these sources of Income
high.
And keep them high she did.
That
w a s her situation before 1 9 3 9 *
S i x years of
war wrought some drastlo changes In that picture.
Following address by Mr* Harry D. White, Assistant
Secretary of the Treasury, is scheduled for delivery
at luncheon meeting of the Civitan dub, Mayflower Hotel,
at
FlnanolaX Agreement
•
V-T-Cf!
V
I am glad to have the opportunity to discuss with
you today the very Important matter of the Anglo-American
FlnanolaX Agreement*
It
public
is
before Just suoh a group as yours that great
Issues should be discussed*
Informing the thinking
citizens about what is being done on important problems
and why it is being done is a vital part of the democratic
process.
The democratic process does not
simply submitting proposals to Congress*
consist
of
The final test
of a policy should be understanding and approval by the
people.
It should be so in the case of the Anglo-American
Financial Agreement.
You will want to know whajf arp' the problems that lie
behind)the Financial Agreement Vilh England.
want to know how the
Agreement
And you will
meets these problems*
Most of all you will want to know the significance of this
Agreement to our whole program of building a
prosperous world*
peaceful
and
TREASURY DEPARTMENT
.
W a s h in g t o n
F OR IT!-EDIATE RELEASE,
Tuesday, A p r i l 3, 194-6
P r ess S e r v i c e
No. V - 2 9 1
(T h e f o l l o w i n g a d d r e s s b y M r. H a r r y D . W h it e ,
A s s is 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 , is _
s c h e d u le d f o r d e l i v e r y a t lu n c h e o n m e e t in g
o f t h e C i v i t a n C lu b , M a y f lo w e r H o t e l , a t
1 2 ; 3 0 P . M , , E a s t e r n S t a n d a r d T im e , A p r i l 9>
1 9 4 6 , a n d i s / f o r r e l e a s e ' a t " t h a t t i m e . )'
A n g lo - A m e r ic a n F i n a n c i a l A g re e m e n t
I am g l a d
to d a y th e v e r y
A g re e m e n t.
to h a v e t h e o p p o r t u n i t y t o d i s c u s s w i t h y o u
im p o r t a n t m a t t e r o f t h e A n g lo - A m e r ic a n F i n a n c i a l
I t i s b e fo r e j u s t s u c h a g ro u p a s y o u rs t h a t g r e a t p u b l ic
i s s u e s s h o u ld be d i s c u s s e d .
I n f o r m in g t h e t h i n k i n g c i t i z e n s
a b o u t w h a t i s b e in g done on im p o r t a n t p ro b le m s a n d why i t i s
b e in g done i s a v i t a l p a r t o f t h e d e m o c r a t ic p r o c e s s .
The
d e m o c r a t ic p r o c e s s d o e s n o t c o n s i s t o f s i m p l y s u b m i t t i n g p r o
p o s a ls t o C o n g r e s s .
The f i n a l t e s t o f a p o l i c y s h o u ld be u n
d e r s t a n d in g a n d a p p r o v a l b y t h e p e o p le .
I t s h o u ld be s o i n t h e
c a s e o f t h e A n g lo - A m e r ic a n F i n a n c i a l A g re e m e n t.
Y ou w i l l w a n t t o know w h a t a r e t h e p r o b le m s t h a t l i e b e h in d
th e F i n a n c i a l A g re e m e n t w i t h E n g la n d .
A nd y o u w i l l w a n t t o
know how t h e A g re e m e n t m e e ts t h e s e p r o b le m s .
M o st o f a l l y o u
w i l l w an t t o know t h e s i g n i f i c a n c e o f t h i s A g re e m e n t to o u r
w h o le p ro g ra m o f b u i l d i n g a p e a c e f u l a n d p r o s p e r o u s w o r ld *
B e f o r e t h e w a r , E n g la n d w as t h e l a r g e s t i m p o r t in g c o u n t r y
’ in t h e w o r ld .
She h a s f o r g e n e r a t i o n s d e p e n d e d h e a v i l y u p o n
im p o r t s f o r h e r s t a n d a r d o f l i v i n g .
Sh e b o u g h t o v e r s e a s m o st
o f h t h e fo o d f o r h e r p e o p le a n d t h e ra w m a t e r i a l s f o r h e r i n d u s
t r ie s .
H e r w h o le econom y w as g e a r e d t o e a r n e n o u g h f r o m h e r
f o r e i g n b u s i n e s s t o p a y f o r .t h e s e e s s e n t i a l s o f h e r e c o n o m ic
li f e . *
She p a id f o r h a l f o f h e r im p o r t s b y e x p o r t s o f m a n u fa c
t u r e d p r o d u c t s ; a n o t h e r f o u r t h o f h e r im p o r t s w as p a i d f o r
w it h n e t p r o c e e d s fr o m h e r f o r e i g n i n v e s t m e n t s , a n d t h e
r e m a in in g q u a r t e r w as p a id f o r o u t o f in c o m e f r o m h e r s h i p p i n g ,
in s u r a n c e , b a n k in g , b r o k e r a g e a n d o t h e r s e r v i c e s .
Slid e a r n e d
more fr o m h e r s h i p p i n g a n d w o r ld b a n k in g s e r v i c e s t h a n -any
o t h e r c o u n t r y ’ , a n d h a d m u c h ^ la r g e r f o r e i g n in v e s t m e n t s th a n
any o th e r c o u n try ^
2
Foreign trade p l a y e d so vital a role in B r i t i s h e c o n o m i c
life that her v ery s t a b i l i t y and p r o s n e r i t y rest e d u p o n h e r
ability to k eep these s o u rces of income high.
And kee p t h e m
h i g h she did.
That was h e r s i t uation b e f o r e 1939.
Six years
wrought some drastic changes in that picture.
of w a r
The p r e -war ba l a n c e b e t w e e n B r i t i s h r e c eipts - i n - p a yments
from abroad - and e x p e n d i t u r e s - o u t - p a y m e n t s a b r o a d - was c o m
p l e tely dis r u p t e d .
Y o u k n o w the reasons.
E v e n b e fore the war,
the g r o w i n g t e n s i o n required huge B r i t i s h p u r c h a s e s in this
country for rearmament.
H e r g o l d and d o l l a r h o l d i n g s fell fro m
more than $ 4 b i l l i o n to about $.2-1/2 b i l l i o n b e t w e e n M u n i c h
crisis and the i n v a s i o n of Poland.
W h e n .the w a r began,
B r i t a i n ’s d e m a n d f or imports g r e a t l y increased, and she had to
finance a part of the w a r effort of various parts of the
B r i tish Empire.
At the same time h e r fo r e i g n e x c hange receipts
her exports, h e r income fro m inve s t m e n t s and h er sh i p p i n g s e r
vices - were d r a s t i c a l l y curtailed.
So g r eat was the r e s u ltant
drain on h e r c a s h reserves that b y the time live b e g a n our lendlease aid, h e r r e m a i n i n g gold and d o l l a r h o l d i n g s were almost
all used up.
W i t h the w a r on, En g l a n d took strong m e a s u r e s to m o b i l i z e
and conserve f o r e i g n exchange reserves for e s s e n t i a l w a r p u r
poses and to exclude or limit imports not u r g e n t l y needed.
These w a r - t i m e c u r r e n c y and trade m e a s u r e s are still in effect.
We r e c ognize that they were n e c e s s a r y in the war emergency.
But we also k n o w that in time of p e ace such m e a s u r e s can be
harmful to w o r l d trade and p r o s p erity.
One o f o ur o b j e c t i v e s
in the d i s c u s s i o n s w i t h the B r i t i s h on the financial a g r e e m e n t
was to secure the s p e e d y removal of these w a r - t i m e c u r r e n c y
and trade restrictions.
Y o u h e a r a g o o d deal a b o u t these w a r - t i m e r e s t r i c t i o n s
p a r t i c u l a r l y the s t e rling area, b l o c k e d st e r l i n g and the
dollar pool.
A b r i e f e x p l a n a t i o n o f h o w t h e y op e r a t e will
chow how they affe c t A m e r i c a n business.
-
The s t e r l i n g area includes the c o u n tries of the B r i t i s h
Empire, except Canada, and some c o u n t r i e s in the Near East
and elsewhere.
T h e y do m u c h of t h e i r b u s i n e s s w i t h England,
and they k e e p m o s t of their m o n e t a r y reserves in the f o r m o f
sterling in England.
Befo r e the war,, these reserves could
be u s e d to b u y goods all over the w o r l d - in the U n i t e d States,
Latin America, the Far East, anywhere.
If A u s t r a l i a w a n t e d to
buy A m e r i c a n c o t t o n b e f o r e the war, it sold s t e rling for
dollars.
3
D u r i n g the war, however, the s t e r l i n g area took on some
new features.
B e c a u s e E n g l a n d d i d n ’t have e n o u g h gold and
dollar reserves, she could no l o n g e r permit the free c o n v e r
sion of sterling reserves into dollars.
She was forced to
make sterling i n c o n vertible.
That m e a n t A u s t r a l i a c o u l d n ’t
use h e r s t e rling to b u y A m e r i c a n cotton.
She could use h er
sterling o n l y in the st e r l i n g area* she could b u y c o t t o n in
india, or Egypt.
In short, while trade a m o n g the s t e rling
area countries could continue, trade of the s t e rling area
countries w i t h the U n i t e d States was restricted.
That b r ings us to b l o c k e d sterling.
E n g l a n d had to go
on b u y i n g goods in the s t e r l i n g area countries and m e e t i n g the
costs of her armies in India, E g y p t and o t her countries.
England bought the g o o d s and m et h e r w a r e x p enses in these
countries b y p a y i n g in sterling.
But E n g l a n d c o u l d n ’t allow
those countries to c o n vert the s t e r l i n g they recei v e d into
dollars.
E n g l a n d just d i d n ’t have e n o u g h g o l d and d o l l a r r e
serves.
N o r could E n g l a n d permit t h e m to b u y B r i t i s h goods
w i t h the sterling.
She could not spare exports to those
countries.
She n e e d e d all h er p r o d u c t i v e resources to conduct
the war.
S o o t h e c o u n t r i e s a c q u i r i n g st e r l i n g could not even
use m u c h of it to spend in -ftngland. In effect, the s t e r l i n g
those cou n t r i e s r e c eived was for the most part b l o c k e d f rom
use, t h o u g h s u b s t antial amounts w e r e use d to p a y off loans or
buy back B r i t i s h - h e l d foreign securities,
The amount of such b l o c k e d s t e r l i n g a c c u m u l a t e d d u r i n g
the w a r was enormous.
T h e y now amount to more than | l 3 b i l
lion.
W h a t is d o n e about these b l o c k e d s t e rling bal a n c e s will
mean a good deal to A m e r i c a n trade.
We d o n ’t wan t En g l a n d s a y
ing to India and the o t h e r countries h o l d i n g b l o c k e d sterling:
Y o u can have these ba l a n c e s freed o n l y to b u y g o ods in
E n g l a n d . ” We d o n ’t want India or E g y p t to k e e p s a y i n g to us:
We w o uld like to b u y A m e r i c a n goods, but we cannot afford it.
Most of our re s e r v e s are b l o c k e d In England, and we can use
it onl y to b u y B r i t i s h p r o d u c t s . ” But that is e x a c t l y what
will h a p p e n If those b l o c k e d b a l ances are not p r o p e r l y
settled.
The sterling area d o l l a r pool li k e w i s e is h a r m f u l to us.
It came about this way.
E n g l a n d h ad to b u y goods o u tside the
sterling area.
M a n y c o m m o d i t i e s we shipped to E n g l a n d had to
be p a i d for b y E n g l a n d in dollars.
And that was true in o t her
countries, too.
To p ay for these goods E n g l a n d had to m o b i l i z e
all h e r d o l l a r resources.
The B r i t i s h sold m a n y of their
A m e r i c a n i n v e s t m e n t s and got d o l l a r s in this way.
And E n g l a n d
a r r anged to have the dollar receipts of the sterling area
countries p o o l e d in L o n d o n and a l l o c a t e d b y L o n don.^
4
For e x a m p l e , w h e n an Indian e x p o r t e r sells goods in the
Un i t e d ^ S t a t e s , he turns the d o l l a r s over to the R e s e r v e B a n k
of India.
T h ese d o l l a r s are the n sold to E n g l a n d for s t e r
ling.
And this h a p p e n s in all of the s t e r l i n g area countries
that have net d o l l a r receipts.
In this way, all the d o l l a r
holdings of the s t e r l i n g area are p o o l e d and a l l o c a t e d on the
basis of the m o s t e s s e n t i a l needs.
To con s e r v e dollar's, funds
are n o t a l l o c a t e d to b u y goods in the U n i t e d States that can
be secured in a ny ste r l i n g area country.
The A m e r i c a n p r o d u c
ers of those p a r t i c u l a r goods are shut out of the st e r l i n g
area m a r kets*
Though, eventually, m o s t of the d o l lars will find their
w a y bac k to the U n i t e d States, the w a y in w h i c h they do so w h e t h e r to p u r c h a s e gold, or invest in o ur securities, or as
deposits in our b a n x s , or the p u r c h a s e of c e r t a i n m a t e r i a l s
rather t h a n others - does m a k e a d i f f e r e n c e to us.
It does
mean that m a n y A m e r i c a n p r o d u c e r s are not g e t t i n g a fair
chance to sell in sterling area ma r k e t s .
A l o n g w i t h these financial controls imposed b y Britain,
there are d i r e c t controls of imports in a l l " s t e r l i n g area
countries.
And these controls, like import l i c e n s e s
are
used to cut d o w n the amou nt of imports that must be paid for
f o r e i g n e x c hange.
In practice, this m e a n t k e e p i n g to a
^^■^tmum imports f r o m countries that had. to be paid, for w i t h
dollars.
One o f our o b j e c t i v e s in the n e g o t i a t i o n s was to secure
agreement on the prom p t e l i m i n a t i o n of these w a r - t i m e r e s t r i c
tions, so that A m e r i c a n e x p orters could have access to all
the m a r k e t s of the w o r l d on a fair and equal basis.
Neither
E n g l a n d nor the s t e r l i n g area cou n t r i e s w a n t to k eep these
restrictions.
But England, will have to continue these re® c t i o n s u n l e s s she can find some o t h e r m e a n s of s e c u r i n g
the imports w h i c h p r o v i d e the b r e a d and the w o r k for her
people » And that is the seco n d p r o b l e m u n d e r l y i n g the
Financial A g r e e m e n t .
Here are the ess e n t i a l facts.
The w a r has s e r i o u s l y impaired E n g X a n d fs i n t e r n a t i o n a l e c o nomic position.
In the next
few years, E n g l a n d c a n n o t earn e n o u g h to p a y for h er most
e s s e ntial imports.
Be c a u s e h e r indu s t r i e s were con v e r t e d to w a r production.,
the Q u a n t i t y of B r i t i s h e x p orts b y the end* of the w a r was o nly
o n e - t h i r d ^ a s m u c h as in p r e - w a r years.
B r i t i s h net income
fro m f o r eign i n v e s t m e n t s is n o w o n l y h a l f of wha t it was befo r e
the w a r b e c a u s e some o f these inve s t m e n t s had to be sold and
because E n g l a n d i n c u r r e d a large f o r e i g n debt.
The B r i t i s h
m e r c h a n t m a r i n e is n o t yet up to its p r e - w a r level.
Every im
portant source o f B r i t i s h income f rom a b r o a d h as b e e n s u b s t a n
tially curtailed.
5
B e c a u s e of h e r r e d uced receipts o f f o r e i g n exchange, and
her h e i g h t e n e d expenditures, it is ine v i t a b l e that E n g l a n d
will have to pay out d u r i n g the next few years m u c h mor e than
she can n o w afford, eve n if they m a i n t a i n a very r e s t r i c t e d
standard of living.
The total d e f i c i t d u r i n g the next few
years in the B r i t i s h i n t e r n ational acc o u n t s has b e e n v a r i o u s l y '
estimated at $.4,000,000,000 to Ï 6 , 0 00,000,000, or eve n more.
We es t i m a t e that it w i l l be 3 to 5 years b e f o r e B r i t i s h receipts
of f o r e i g n e x c h a n g e
w i l l equal h er o u t - p ayments.
Britain, therefore, needs credit; that fact is inescapable.
Two a l t e r n a t i v e s are available,
^ i t h e r the B r i t i s h can receive
some a s s i s t a n c e f r o m o u tside the st e r l i n g area and a b a n d o n the
war - t i m e restr i c t i o n s ; or the y can continue and extend these
restrictions, pull in still fu r t h e r t h eir a l r e a d y tight belt,
and force a d d i t i o n a l a s s i s t a n c e from the s t e rling area.
This
latter course w o u l d s e r i o u s l y impede w o r l d recovery, and our
own trade.
In oür o wn interest we m u s t make it p o s s i b l e for
En g l a n d to a b a n d o n the w a r - t i m e c u r r e n c y and trade r e s t r i c
tions and join w i t h us and the U n i t e d N a t i o n s in a p r o g r a m of
i n t e r n a t i o n a l economic c o operation.
The f i n a n c i a l A g r e e m e n t meets thesp two p r o b l e m s in a
m a n n e r that is a d v a n t a g e o u s to b o t h c o u n tries.
U n d e r the
A g r e e m e n t E n g l a n d u n d e r t a k e s to remove the r e s t r i c t i o n s that
stifle trade and the d i s c r i m i n a t i o n s that put our p r o d u c e r s
at a d i s a d v a n t a g e in all B r i t i s h ma r k e t s .
H ere is what
En g l a n d will do:
*
1.
W i t h i n a year E n g l a n d agrees to make all sterling
a r i s i n g from c u r rent trade c o n v e rtible.
If M e x i c o and
E g y p t export to E n g l a n d they will be able to use the
m o n e y they get to b u y the c u r r e n c y of any country. That
m e a n s they could convert the s t e r l i n g into d o l l a r s and
b u y radios or r e frigerators, or m a c h i n e tools, in the
U n i t e d States.
2.
W i t h i n a y e a r B r i t a i n will d i s s o l v e the d o l l a r
pool.
The m o n e y that the s t e r l i n g area c o u ntries get
for their exports to the U n i t e d S t a t e s ' c o u l d be spent
here w i t h o u t g e t t i n g an a l l o c a t i o n f r o m E n g l a n d . That
means that India could use do l l a r s to b u y A m e r i c a n
m a c h i n e r y instead of b e i n g forced to b u y E n g l i s h
machinery.
3.
E x p o r t s of goods and services f r o m the U n i t e d - *;
States to E n g l a n d will be paid for in dollars, or if
paid in pounds, the m o n e y can be c o n v e r t e d into d o l
lars by A m e r i c a n exporters. • That m e a n s the A m e r i c a n
i n d i v i d u a l s and c o m p a n i e s wfh i c h in the past have e x
p e r i e n c e d c o n s iderable d i f f i c u l t y in g e t t i n g their
current e a r nings f r o m B r i t a i n w i l l n o w be paid in
dollars.
6
4.
The b l o c k e d s t e rling b a l a n c e s will be settled by
E n g l a n d and the countries concerned.
A n y pay m e n t s on
these balances, w h e t h e r n o w or in l a t e r years, will,
however, be free for m a k i n g p u r c h a s e s in a ny country,
in c l u d i n g the U n i t e d States.
That m e a n s that countries
o w n i n g those b a l a n c e s can b u y mor e f r o m us, w h ile
E n g l a n d can sell more for cash.
5#
E n g l a n d ’s import controls will be a d m i n i s t e r e d in
a m a n n e r w h i c h d o e s not d i s c r i m i n a t e a g ainst A m e r i c a n
products.
That means E n g l a n d will not keep out A m e r i c a n
fruits and nuts w h ile p e r m i t t i n g these same pr o d u c t s to
be p u r c h a s e d f r o m Portugal, E g y p t or India.
6.
E n g l a n d will support the A m e r i c a n pr o p o s a l for an
Intern a t i o n a l Trade O r g a n i z a t i o n to reduce trade b a r r i
ers and e l i m i n a t e trade restrictions.
In this w a y
En g l a n d supports our p o l i c y of e x p a n d e d trade, w i t h all
countries h a v i n g acce s s to w o r l d m a r k e t s on fair terms.
In the long run, these fair trade and c u r r e n c y nra c t i c e s
will h e l p England, too.
W i t h ex p a n d e d w o r l d trade, B r i t i s h
exporters will find b e t t e r m a r kets.
But it will take several
years before B r i t i s h exports are inc r e a s e d s u f f i c i e n t l y to
b r ing her foreign exchange receipts u p to the n e c e s s a r y level.
E n g l a n d can u n d e r t a k e the various m e a s u r e s to liberate
tr a d e ^ c h a n n e l s that I have just r e f e r r e d to o n l y if she can get
help in p a y i n g fcAr her essential imports w h ile h e r trade is b e
ing restored.
Part of the h elp she will get f r o m o t h e r c o u n
tries.
But mos t of it can come o n l y from the U n i t e d States.
This is the s e c o n d n r o b l e m that is met b y the Financial
Agreement.
If C o n g r e s s a p p r o v e s the Agreement, the U n i t e d
States will open a line of credit of $ 3 , 7 5 0 , 0 0 0 , 0 0 0 , against
w h i c h E n g l a n d can d r a w to p a y for her imports.
None of the
credit can be u s e d to pa y an y of B r i t a i n ’s o u t s t a n d i n g debts,
ihese will have to be met f r o m o t h e r resources.
The credit
we are p r o p o s i n g to e x t e n d to her can be u s e d o n l y f o r imports k
and other current payments.
This credit w i l l remain o p e n f or use by E n g l a n d until 1951,
She must then b e g i n to repay the credit w i t h interest at 2 perdent.
The repayment w ill be in the f o r m of 50 equal annual
payments c o v e r i n g pri n c i p a l and interest.
The p a y ment of p r i n
cipal due e a c h year m u s t be paid w i t h o u t qu a l i f i c a t i o n .
How
ever, if w o r l d trade should b e c o m e s e v e r e l y depressed, the
interest due in that y e a r wouldr be" waived., but p a y m e n t of i n
terest would be r e s umed as soon as trade r e c o v e r s .
7
As y o u can see, the credit is not a gift.
It will have
to be repaid w i t h interest.
A nd the credit will n o t m e a n that
E n gland can import all she wants.
C o n s u m p t i o n in En g l a n d will
still have to be kept d o w n to s o m e thing like w a r - t i m e a u s t e r
ity .
A nd n o w x come to m y last point,.
The Financial A g r e e m e n t
w i t h E n g l a n d Is an essential part of o ur p r o g r a m for a p e a c e
ful and pros p e r o u s world.
The people of the U n i t e d States and the U n i t e d N a t ions
have agreed on a p r o g r a m in w h i c h c o u n tries coo p e r a t e to m a i n
tain peace and p r o s p e r ! t y . ihe U n i t e d N a t i o n s Organization,
w i t h its S e c u r i t y Council, General Assembly, I n t e r n a t i o n a l
Court of Justice, a nd social and E c o n o m i c Council, cons t i t u t e s
one side of this program.
The Food and A g r i c u l t u r a l O r g a n i z a
tion, the I n t e r n a t i o n a l M o n e t a r y ^und and the In t e r n a t i o n a l
Bank for R e c o n s t r u c t i o n a nd E e v e l o p m e n t , and the p r o p o s e d
I n t e r national Irade- O r g a n i z a t i o n c o n s t i t u t e a n o t h e r side of
the same program.
T his p r o g r a m r e c o g n i z e s that it is not e n o u g h to get
countries to agree on p o l i t i c a l coope r a t i o n .
That is i m p o r t
ant, of course, But we m ust d o m ore than that.
We m u s t s u p
port^ all o u r efforts for p e ace by p r o v i d i n g an e n v i r o n m e n t of
s t a b ility a nd o r d e r in i n t e r n a t i o n a l e c o nomic relations.
We
must remove the economic causes of conflict.
In such an e n
vironment, peace can flourish.
The U n i t e d N a t i o n s have gone a long w a y toward e s t a b l i s h
ing s uch an economic f o u n d a t i o n for p e a c e f T h e y have agreed
on c o o p e r a t i v e m e a s u r e s to p r o v i d e the capital for r e s t o r i n g
the eco n o m i e s of w a r - t o r n c o u n t r i e s .
The y have a g r e e d on the
principles of fair c u r r e n c y p r a c t i c e ess e n t i a l to i n t e r
national trade and Investment.
they are n o w c o n s i d e r i n g
the a d o p t i o n of p r i n c i p l e s of fair t r a d e pr a c t i c e that will
reduce the b a r r i e r s and eli m i n a t e the r e s t r i c t i o n s that p r e
vent an e x p a n s i o n of world trade.
T h i s ' I s . a p r o g r a m in w h i c h
the people o f all c o u n tries have p l a c e d their hopes for
o r d e r l y and b e n e f i c i a l economic r e l a t i o n s .
O u r . p r o g r e s s for i n t e r n a t i o n a l e c o n o m i c c o o p e r a t i o n d e
pends^ on h a v i n g E n g l a n d adopt the fair t r a d e and c u r r e n c y
policies for w h i c h we stand,
E n g l a n d ’s a c t i o n s set the p a t
tern for the w h ole B r i t i s h E m p i r e and the s t e r l i n g area.
These c o u n tries a c c o u n t for m ore than a t h i r d of the i n t e r
national t r ade of the entire w o r l d r T h ese c o u n t r i e s are our
est customers.
A m e r i c a n producers, the p r o d u c e r s in all
countries, n e e d a fair and equal chance-, in t h e s e m a r k e t s and
in all the m a r k e t s of the world.
8
A w o r l d that trades on a fai r basis is a p r o s p e r o u s world.
A p r o s p e r o u s world is l i k e l y to be a p e a c e f u l world.
That is
w hy the financial A g r e e m e n t w i t h E n g l a n d is a vital part of our
whole p r o g r a m for peace and pros p e r i t y .
So far I have b e e n s p e a k i n g e n t i r e l y of the d i rect trade
b e n efit s to the U n i t e d States that will result f r o m the a d o p
tion o f the Financial A g r e ement.
But it w o u l d be u n f o r t u n a t e
to assume that s u c h g a i n s are the only, or even the c h ief
benefits.
We must r e m e m b e r that the United S t ates is the l e a d i n g
financial c o u n t r y in the world.
It is by far the richest in
p r o d u c t i v e power, in technical skills, and in b u s i n e s s k n o w
how.
We have m o r e gold t h a n the rest of the w o r l d put t o
gether;
and we can out-produce, o u t -sell and o u t - f i n a n c e any
o t her n a t i o n or eve n almost a ny c o m b i n a t i o n of nations.
T h a t p o s i t i o n of p r e - e m i n e n c e in the financial and
economic field b r i n g s w i t h it imp o r t a n t r e s p o n s i b i l i t i e s .
W h e t h e r we lik e it or not, l e a d e r s h i p in in t e r n a t i o n a l
economic a f f airs is n o w ours.
The w o r l d u r g e n t l y depends u p o n us to fulfill our o b l i g a
tion of w o rld l eadership.
It d e p e n d s u p o n us to e x pand and
pursue a p o l i c y of e n l i g h t e n e d s e lf-interest, a p o l i c y that in
the long run w i l l o p e r a t e to the a d v a n t a g e of the A m e r i c a n
people eve n more than to that of f o reign countries.
Other
countries m a y stand to lose mor e f r o m d e p r e s s i o n and pol i t i c a l
insecurity, but we stand mos t to g ain f r o m world peace and
world p r o s perity.
The p r o p o s e d loan to the U n i t e d K i n g d o m is a good e x a m p l e
of an A m e r i c a n p o l i c y of e n l i g h t e n e d s e lf-interest.
It is
p r e c i s e l y the sort of I n v e s t m e n t we should m ake u n d e r p r e s e n t
ci r c u m s t a n c e s and the kind of i n v e s t m e n t w h i c h will yield
benefits far in excess of the interest pa y m e n t s we are s c h e d
uled to receive.
If C o n g r e s s ap p r o v e s the A g r e e m e n t , we shall be d o i n g a
great service to the rest of the w o r l d and we shall be d o ing
a g r e a t e r service to ourselves.
0O 0
1/
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED
' A f
P3BSASE FORWARD 8 COPIES TO ROOM U03 , WILKINS BLDG.
Liminary figures
>nsumption during
mi
itity in Pounds
as
01 March. 30» 19^6
Signatory Countries:
732 ,661,862
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
3>+l,757,7lH
12 ,818,107
177
lH,79^,179
8.925.157
16,33^.301
Ho,892,1)79
lH, 579.679
U,395.211
26 ,007,^91
7 ,120 ,1)21
2 ,18H,l62
23.^9.369
21.65s.177
Non-Signatory Countries:
TOTAL
1,267,588,686
1-
f
FOR IMMEDIATE RELEASE
A p r i l 19*6
/6
The Bureau of Customs announced today preliminary figures
shoving the quantities of coffee entered for consumption during
the period commencing October 19 15H5 , &s follows:
Country of Production
Quantity in Pounds
As of March 30» 19^6
Signatory Countries:
Brazil
Colombia
Costa Sica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
732,661,362
3*1.757,71*
12,318,107
177
1*.79**179
8,925,157
16 ,33^.301
Ho,892,1+79
1^.579.679
*.395,211
26 ,007,H91
7,120,*21
2 ,l8H,l62
23 ,*59,369
Signatory Countries:
21.658.377
TOTAL
1,267,588,686
TREASURY DEPARTMENT
W a s h in g t o n
FOR B.XCEDIATE R E L E A S E
W ed nesd ay, A p r i l 1 0 , 1946
P r e s s S e r v ic e
N o . V -2 9 2
The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s
s h o w in g t h e q u a n t i t i e s o f c o f f e e e n t e r e d f o r c o n s u m p t io n d u r i n g
t h e p e r i o d co m m e n cin g O c t o b e r 1 , 1 9 4 5 ? a s f o l l o w s :
Q u a n t it y in P o un ds
A s o f M a rc h 5 0 , 1 9 4 6
C o u n try o f P r o d u c t io n
S ig n a t o r y C o u n t r ie s :
,
B r a z il
C o lo m b ia
C o sta R ic a
Cuba
D o m in ic a n R e p u b l i c
Ecuador
E l S a lv a d o r
G u a te m a la
H a it i
H o n d u ra s
732 661,862
3 4 1 ,7 5 7 ,7 1 4
1 2 ,8 1 8 ,1 0 7
177
14,794,179
8,925,157
16,334,301
40,892,479
14,579,679
4,395,211
26,007,491
7,120,421
2 , 184,162
23,459,369
Mexico
N ic a r a g u a
P e ru
V e n e z u e la
N o n - S ig n a t o r y C o u n t r i e s :
21,658,377
TOTAL
1 , 267, 588,686
3- f 3
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM U03, WILKINS BLDG.
y figures showing the
1initiations provided for
ba periods to March 30,
8 Unit :Imports as of
_8
of
: March 30,
ity: Quanti ty :
I9I46
or sour
Calendar lear
j ,uuo,000
Gallon
2 ,638
Cream, fresh or sour
Calendar Year
1,£00,000
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
l£,000,000
Pound 12,1*16,£33
90,000,000
60,000,000
Pound Quota filled
Pound
220,989
White or Irish potatoes:
certified seed
other
12 months from
Sept. l£, 19kS
Gallon
637
Cuban filler tobacco unsteamed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
22,000,000
Red cedar shingles
Calendar Year
l,396,lt23
Square
377,770
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar Year
1,£00,000
Gallon
ia,9SU
Silver or black foxes, furs,
and articles: Foxes
valued under $2£0 each
and whole furs and skins
Month of
March
17,500
Canada
17,500
Other than Canada 7>500
Tails
12 months from
Dec. 1, 19li£
Pound
(Unstemmed Quota
equivalent)
filled
Nunber ~~
Number
Number
£,000 Piece
5,133
906
-
Paws, heads or other
separated parts
H
£00
Pound
U90
Piece plates
tt
550
Pound
-
Articles, other than piece plates
H
£00
Unit
59
FOR IMMEDIATE RELEASE
April 9, I9l*6.______
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitiations provided for
under trade agreements, from the beginning of the quota periods to March 30,
191*6, inclusive, as follows:
Commodity
•
•
• Unit :Imports as of
:
Established Quota
:
of
: March 30,
•
« Period and Country: Quantity:Quantity:
191*6
Whole Milk, fresh
or sour
Calendar Year
3 ,000,000
Gallon
2,638
Cream, fresh or sour
Calendar Year
1,500,000
Gallon
637
Fish, fresh or frozen,
filleted, etc., cod,
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
15 ,000,000
Pound 12,1*16,533
90,000,000
60,000,000
Pound Quota filled
Pound
220,989
White or Irish potatoes:
certified seed
other
12 months from
Sept. 15, 191*5
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
22,000,000
Red cedar shingles
Calendar Year
1,396,1*23
Square
377,770
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar Year
1,500,000
Gallon
1*1,951*
Silver or black foxes, furs,
and articles: Foxes
valued under |>25>0 each
and whole furs and skins
Month of
March
Canada
17,500
Other than Canada 7>500
Number*'
Number
Number
5,133
906
Tails
12 months from
Dec. 1, 191*5
Paws, heads or other
separated parts
Pound
(Unstemmed Quota
equivalent)
filled
5,000 Piece
-
it
500
Pound
1*90
Piece plates
n
550
Pound
-
Articles, other than piece plates
**
500
Unit
55
THEAS UHY DEPARTMENT
Washington
Press Service
No. V-293
FOR IMMEDIATE RELEASE
Wednesday« April 10, 1946
The Bureau of Customs announced today preliminary figures.showing the
imports for consumption of commodities within quota limitations provided for
under trade agreements* from the beginning of the quota periods to March 30^.
194.65 inclusive* as follows
Commodity
: Unit
?Imports as of
; of
: March 30*
:
Established Quota
1946
;Period and ©ottfvbr■y: Quantity :Quantity :
Whole Milk* fresh
or sour
Calendar Year
3 *000 *000
Gallon
2*638
Cream, fresh or sour
Calendar Year
1 *500 *000
Gallon
637
Fish* fresh or frozen*
filleted* etc.* cod*
haddock* hake* pollock*
cusk* and rosefish
Calendar Year
1 5 *000 *000
12 months from
Sept. 15* 1945
9 0 *000*000
White or Irish potatoes?
certified seed
other .
Caban filler tobacco un
stemmed or stemmed (other*
than cigarette leaf tobacco)
Calendar Year
and scrap tobacco
'Red cedar shingles
Calendar Year
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar Year
Pound
60* 000* 000 Pound
12 months from
Dec. 1* 1945
12,416,533
Quota filled
220*989
Pound
(Unstemmed Quota
equivalent) filled
22* 000* 000
1 ,3 9 6 ,4 2 3
Square
377*770
1 *500 *000
Gallon
41*954
17*500 Number
7*500 Number
5,133
Silver or black foxes*furs*Month of
and articles ? Foxes
March
Canada
valued under £250 each
Other
than Canada
and whole furs and skins
Tails
Pound
9 06
-
.»
500 Pound
490
Piece plates
it
550 Pound
-
Articles* other than piece
plates
11
500 Unit
59
Paws* heads or other
separated parts
V#
O
O
O
Piece
/
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
POR IMMEDIATS
April 9% 19h6
PtEASI FORWARD 8 COPIES TO ROOM 1+03, WILKIHS BLDG.
The Bured
quantities of
consumption ur
of May 28, 194
and Aprfil 29,
2 or
lat i on
1942,
,na,
Country
of
Origin
#
•
♦
t'
iEstablished
:
Quota
9
•
:
Imports
jMay 29, 1945, to
!1ibY«ish Vi lOliA
(Bushels)
.
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
Japan
United Kingdom
100
Australia
Germany
100
Syria
100
'—
New Zealand
—
Chile
Netherlands
100
Argentina
2,000
Italy
100
Cuba
—
Prance
1,000
Greece
Mexico
100
Panama
Urughay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
v
1,000
Guat emala
100
Brazil
100
Union of Soviet
Socialist Republics
1 QO
Belgium
100
„
:
»,
—.
»
—
.■■A
800,000
79U.U2—5
—
—
—
4
—
—
—
—
—
—
—
—
—
_
I—
—!
—
—
—
■
—
_
wheat, and similar
î
wheat products
:Established :
Imports
«
Quota
* May 29, 1945,
• to Msar*_ in. TC
(Pounds)
(Pounds)~
1,296,669
3,815,000
24,000
13,000
13,000
.8,000
75,000
" «.
''4M»
w
—
1,000
fOk
5,000
5,000
—
1,000
1,0 0 0
1,000
'M
■:**
—
—
14,000
2,000
12,000
1,000
1,0 0 0
1,000
1,000
1,000
1,000
1,000
1,000
1 ,0 0 0
1,000
-
.-
-
•»
«MB
—
m
MBI
HH HHB
BS.
•• l ÿ011|MnH|1|§|' **
4,000,000
1,296,533
B
TTtrfiZp-
o0o<
g
mm
POR IMMEDIATE RELEASE,
April 9, 1?U6_____
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas estab3.ished in the President’s proclamation
of May 28, 1941, as modified by the President’s proclamations of April 13, 1942,
and Apf'il 29, 1943, for the 12 months commencing May 29, 1945, as follows:
Wheat
Country
of
Origin
Established
Quota
(Bushels)
795,000
Canada
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
100
Syria
•—
Hew Zealand
—
Chile
100
Netherlands
2,000
Argentina
100
Italy
Cuba
1,000
Prance
—
Greece
100
Mexico
Panama
U rugtiay
—
Poland and Danzig
—
Sweden
Yugoslavia
Norway
•Canary Islands
1,000
Rumania
100
Guatemala
100
Brazil
Union of Soviet
Socialist Republics
IQO
100
Belgium
800,000
i
Imports
jMay 29, 1945, to
•Mar*rtH "ifif 1 9)|A -(Bushels)
79k,
—
—■
—
—
—
—
—
—
- '
—
—
—
—
—
Wheat flour, semolina,
crushed or cracked
wheat, and similar
wheat products
Imports
Established :
i May 29, 1945,
Quota
! to Man> 3Qj 19k
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
.8,000
75,000
1,296,669
T\f g|■
■
.m
:
i
. '**
**
• ”*
23k
1,000
5,000
5,000
1,000
1,0 0 0
1,000
'
**
14,000
2,000
12,000
1,0 0 0
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1 ,0 0 0
1,000
. s ..
**
*•
**
*"*■J
m
m
m
m
m
m
—
4 ,000,000
1,296
,W
TREASURE DEPARTMENT
Washington
FOR BMEDIATE RELEASE
Wednesday* April 10, 194.6
Press Service
No*. .V-294
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President's proclamation
of May 28, 1941, as modified by the President's proclamations of April 13, 1942,
and April 29, 1943, for the 12 months commencing May 29, 1945,. as follows?
1
Country
of
Origin
:
wheat
Imports
:Established ?
: Quota
: May 29, 19 45, to
March 30,1946
(Bushels)
795,000
Canada
China
Hungary
-t
Hong Kong
Japan
100
United Kingdom
—
Australia
100
Germany
100
Syria
New Zealand
.
Chile
100
Netherlands
2,000
Argentina
100
Italy
—
Cuba
1,
000
France
—
Greece
100
Mexico
—
Panama
- .
Uruguay
Poland and Danzig
Sweden
Yugoslavia
—
Norway
«•*
Canary Islands
1,000
Rumania
100
Guatemala
Brazil
100
Union of Soviet
Socialist Republics
100
100
Belgium
—
(Bushels)
794,425
—
-
The at flour, s emolina,
crush©dor eraeked
wheat, and similar
wheat products
Import
Establish©«h
Quota
lay 29, 19
March 30,
O
0
0
(Pounds)
3,815,000
24,000
13,000
13,000
/
-
—
-
—
—
800,000
17
14,000
r*
**
2,000
12,000
1,000
.1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
-
-,
-•
794,425
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
—
(Pounds)
1,296, 669
234
-
-
~
-
-
,
-
4 0 0 0 ,0 0 0
1,296,903
2
COTTON CARD STRIPS made from cottons,? having, a- staple of less than 1-3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER* WASTE, AND. ROVING- WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE., Annual quotas commencing
September 20, by Countries of -Origin:
',
Total quota *■provided, however, that not. more, than 33-1/3 percent of the quotas
shall he filled by cotton wastes .othèr,than"JE&jüS?fttfcx
comber wastes made from
the
case of the followcottons of 1-3/16 inches or more in staple length in
ing countries: United Kingdom, France, Netherlands, Switzerland, Belgium,
Germany, and Italy:
(In Pounds)
Country of Origin
TOTAL IMPORTS : ESTABLISHED
: Established *
•Sept:, 20, 194£ t 33-1/3$ of
: TOTAL QUOTA î;
to Marw 30, 1^1*6 Total Quota
United Kingdom.... ,
Canada............
France...‘..... ...
British India.....
Netherlands...... .
Switzerland........
Belgium........ ... ,
Japan..... ........
China.............
Egypt..............
Cuba..... .........
Germany.... -..... f
Italy..... ........
4,323,457
239,690
227,420
69,627
68,240
44,388
38,559
341,536
17,322
8,135
6,544
76,329
21,263
TOTALS
5,482,509
1/
•
i -, ..
69,627
—
— .
.—
—
69,627
Included in total imports, column 2.
-oOo-
1,441,152
75,807
22,747
14,796
12,853
■ -■
'25,443
7,088
1 ^'99,88 6
Imports
Sept. 20, 1945
toMar* 30, 1/
19U6
—
—
-—
—
**
—
-«•
—
«É»
mm
-
FOR IMMEDIATE RELEASE
April 9, 19k6
The Bureal
collectors of <
import quotas i
as amended by \
2 9 ; 1942, duri^
COTTON HAYING 1
COTTON OF
FACTURE OF'BI
commencing S$
WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM U03, WILKINS
BUILDING
nore
Country oj
,
Origin
Es tab li she.d
Quota
rMar.
Egypt and the AngloEgyp t i a n Sudan...... ...,
P e r u ...... /.....
B r i t i s h I n d i a ............
C h i n a ......... .
M e x i c o ......... ........ ..
B r a z i l ......... V/.;;
U n i o n of Soviet
Socialist Republics...
A r g e n t i n a ..............
H a i t i ......... .........
E c u a d o r ....... .........
H o n d u r a s ........ .
P a r a g u a y . .......... ......
Ilc&omhieu..* ^
'.,......
I r a q . ................. ....
B r i t i s h East A f rica..,1. T
N e t h e rlands East Indies.
B a r b a d o s . ................
Other B r i t i s h West
Indies 1 / ..............
N i g e r i a ...................
"Other B r i t i s h West
A f r i c a 2/
Other F r e n c h A f r i c a 3/..
A l g e r i a and T u n i s i a .....
1/
783,816
247,952
2 3 7 ,8li*
2,003,483 f 1 ,796,001
1,370,791
8,883,259 8 , 8 8 3 , 2 5 9
618,723
618,723
.
w* :,'
475,124
; --5,203
•ìm
237
■'—'•*.
9,333
,
r—.’'
752
'.m
m
t .*
871
124
2,240
71,388
15,278,689
6 , U 5 U,102
■
—
—
...
%»
—
“
_
—
■—
'—
—
—
—
—
21,321
—
5,377
—
—
16,004
—
689
■14,5X6,882 1 1 , 5 3 5 , 7 9 7
-
1
-
45,656,420
Other than Barbados, Bermuda, Jamaica,, Trinidad, and'Tobago.
2 / Other than Gold Coast and Nigeria.
3/
DO l-cpu ,
Qu o t a
î 20, 1949, to
to r,
30‘, 1 9 U 6 • 45,656,420 tMar. 30, 19^6
Other than Algeria, Tunisia, and Madagascar,
21, 7 3 2 , 7 9 2
I
■.
Customs announced to<
•that preliminary reports from the
/¿toms show imports of cotton and cotton waste chargeable to the
xiixjjuj. u quotas Established by the President’s proclamations of September 5, 1S3S,
as amended by the proclamations of December 19, 1940, March 31,* 1942., and June
29, 1942, during the period' September-20 , 1945, t.o March 30, I9I4.6 .•
COTTON HAYING A STAPLE OP LESS THAN 1-11/16 INCHES (OTHER.THAN*HARSH OR ROUGH
COTTON OP LESS THAN, 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN T&E MANU
FACTURE OP "BLANKETS AND BLANKETING, AND OTHER:THAN L INTERS). Annual, quotas
commencing September 20, by' Countries of Origin:
• (In Pounds)
Staple length less : Staple length 1-1/8» or more
but less.than 1-11/16»
than 1-1/8»
:
Established
: Imports Sept.
flmports Sept.:
Quota
: 20, 1945, to
Es tahlishediZdy to :
45,656,420 tMar. 30, 19^6
Quota
VMar • 30 ‘, 19L6
Country of
Origin
Egypt and the AngloEgypt ian Sudan........
Peru..... ....
British India..........
China...... ............
Mexico........ ...... ..
Brazil........ ,.% .....
Union of Soviet
Socialist Republics...
Argentina..............
Haiti..................
Ecuador....... .........
Honduras........ .
Paraguay...............
JlcdomMa^,
v,. . -----Iraq....................
British East Africa...:.T
Netherlands East Indies.
Barbados...............
Other British Nest
Indies 1/............
Nigeria................
"Other British West
Africa 2/
Other French Africa 3/..
Algeria and Tunisia.....
783,816
247,952
237,8lL
2,003,483< 1,796,001
1,370,791
8,883,259 8,883,259
618,723
618,723
475,124
5,203
237
9,333
752
871
124
2,240
71,388
_
. • . '•'
...
;. , .
«...
—
—
•
—
—
..........
-*.««-.........
,
—
•
—
—
—
21,321
5,377
-
16,004
689
1
-
•45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and'Tobago.
Other than Algeria, Tunisia, and Madagascar.
f
,
.,
...
—
2 / Other than Gold Coast and Nigeria.
3/
.'
- V
w.: -U
14,516,882 11,535,797
if
15,278,689
6 ,li5U,102
-
21,732,792
x
TREASURY DEPARTMENT
Washington
FOR HMEDIATE RELEASE
Wednesday, April 10. 1946
Press Service
No* V - 295
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5, 1939*
as amended by the proclamations of December 19* 1940* March 31* 1942* and June
29* 1942* during the period September 20* 1945* to March 30* 1946»
COTTON HAVING A STAPLE OF LESS THAN l-ll/lo INCHES (OTHER THAN HARSH OR ROUGH
COTTON OF LESS THAN 3/4 INCH IN STAPLE LENGTH AND CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING* AND OTHER THAN LINTERS). Annual quotas
commencing September 20* by Countries of Origin:
(In Pounds)
Country of
Origin
:
Staple length less ; Staple length l~l/8M or more
:______ than l«-l/8n
:
but less than l~ll/l6n
Imports Sept.: Established : Imports Sept,
:
Established: 20* 1945, to :
Quota
: 20, 1945, to
Quota
Mar, 30, 1946: 45,656,420 :Mar* 30, 1946
•
Egypt and the AngloEgyptian Sudan********
Peru*. »................. *
British India».* .........
China, «••....•••••••• ....
Mexico,.................
Brazil* .............. .*
Union of Soviet ■'
Socialist Republics***
Argentina*. *.........-,-,*
Haiti*.. . .........
Ecuador* *...............
Honduras*••••••*•»...,..
Paraguay,*..... ....,..»
Colombia. .»•••,..»..» ** *
Iraq*..•••*»»•»•*......•*
British East Africa*.»**
Netherlands East Indies*
Bsrbs.cios'# •••
••• •#•> •
Other British West
Indies 1/
Nigeria* ••»•.*.••••**• .*
Other British West
Africa 2/
Other French Africa 3/*»
Algeria and Tunisia,.,..
783,8X6
247*952
2,003,483
1,370*791
8,883,259
618,723
475*124
5,203
237
9,333
752
871
124
195
2,240
71,388-
mm
mm
mm
mm
8,883,259
618,723
*—
—
—
—
—
—
—
—
r*
mm
m~
'
—
—
_
mm
mm
mm-
21,321
5,377
16*004
689
-
-
mm
tL
—
-
1
r*
14,516,882 11,535,787
1/
2/
3/
15,278,689
6,454,102
237,814
1,796,001
45,656,420
Other than Barbados* Bermuda* Jamaica* Trinidad* and Tobago*
Other than Gold Coast and Nigeria*
Other than Algeria* Tunisia, and Madagascar*
21,732,792
2
COTTON CARD STRIPS made from cottons having a staple of less than l~3/l6 inches
in lengthy COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER .
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE. Annual quotas commencing
September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33**l/3 percent of the quotas
shall be filled by cotton -wastes other than comber wastes made from cottons
of 1-3/16 inches or more in staple length In the case of the following
countries: United Kingdom, France, Netherlands, Switzerland, Belgium, Germany
and Italy:
(in pounds)
TOTAL IMPORTS : ESTABLISHED : Imports
Established ! Sept. 20, 1945 : 33-1/3$ of : Sept. 20, 1945
Country of Origin : TOTAL QUOTA j to Mar, 3Q, 1946: Total Quota : to Mar, 30, 1j
'1946 '
United Kingdom,.....
Canada,......... .
France«...... .
British India,......
Netherlands,........
Switzerland.........
Belgium.... .
Japan....... .
China.
Egypt............ ..
C u b a . ......
Germany. ..••.•••••••
Italy...............
TOTALS
1/
4,323,457
239,690
227,420
69,627
—
69,627
68,240
44-,388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
5,482,509
*
—
■-
69,627
Included in total imports, column 2,
oOo
1,441,152
—
75,807
22,747
14,796
12,853
—
—
25,443
7,088
1,599,886
—
m
*-•
—
—
—
-
- 3 sold, redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. I4.I8, 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.
XEEHX
-
2
-
Immediately after the closing hour, tenders td.ll be opened at the Federal
Reserve Banks and Branches, following which public announcement will be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders -will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
Subject to these reservations, tenders for $200,000
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
April 18 , 19U6_______ .
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 either excise taxes,
whether Federal or State, out shall be exempt from all taxation now or here
after 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 pur
poses 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
bZ and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of
the Revenue Act of 19i|-l, the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
J- ¿ U
M l
?
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS>
Friday* April 12. 19li6_________.
¿idb
The Secretary of the Treasury, by this public notice, invites tenders for
% 1,300 m 0*000 , or thereabouts, of
91
-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series will be dated
will mature
out interest.
1B
1 ol.A
April 18, 19li6
, and
. wheh the face amount will be payable with-
They trill be issued in bearer form only, and in denominations
Tenders trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday* April 19* 19U6
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., 99.929*
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.
TREASURY DEPARTMENT
■ W a s h ington
FOR RELEASE, M O R N I N G N E W S PAPERS,
FRIDAY, A P R I L 12 , 1946_________
Press S e rvice
No. V-296
T h e S e c r e t a r y of the Treasury, by this public notice,
invites tenders for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 ^ d a y
T r e a s u r y bills, to be issued on a d i s c o u n t basis u n d e r c o m p e t i
tive and f i x e d-price b i d d i n g as h e r e i n a f t e r provided. The bills
of this series will be dated April 18, 1946, and w ill m a t u r e
July 18, 1946, w h e n the face amount w ill be p a y a b l e w i t h o u t in
terest.
T h e y will be issued in b e a r e r f o r m only, and in d e n o m
inations o f $1,000,
$5,000,
$10,000,
$100,000,
$ 5 0 0 , 0 0 0 and
$ 1 , 0 0 0 , 0 0 0 ( m a t urity value).
T e n d e r s will be r e c eived at Federal R e s e r v e Banks and
Branches up to the cl o s i n g hour, two o Tclock p.m., E a s t e r n
S t a n d a r d time, Monday, April 15, 1946.
T e n d e r s will n ot be
received at the T r e a s u r y D epartment, W a s h i n g t o n .
Each tender
must be for an even mu l t i p l e of $1,000, and the price o f f e r e d
must be ex p r e s s e d on the b a sis of 100, w i t h no t more than
three decimals, e.g., 99.925.
Fractions m a y not be used.
It
Is u r g e d t h a t . t e n d e r s be mad e on the p r i n t e d forms and f o r
w a r d e d in the special env e l o p e s w h i c h will be s u n plied b y
Federal Reserve Banks or B r a n c h e s on a p p l i c a t i o n therefor.
T e n d e r s will be re c e i v e d w i t h o u t d e p o s i t f rom i n c o r p o r a t e d
banks and trust companies and f r o m resp o n s i b l e and r e c o g n i z e d
dealers in investment securities.
T e n d e r s f r o m others m u s t be
a c c o m p a n i e d by p a y ment of 2 percent, of the face amount of
T r e a s u r y b i l l s a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
by an express g u a r a n t y of p a y ment b y an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y a f t e r the cl o s i n g hour, tenders w ill be o p e n e d
at the Federal Reserve Banks and Branches, f o l l o w i n g w h i c h p u b
lic a n n o u n c e m e n t will be made b y the S e c r e t a r y o f the T r e a s u r y
of the a m o u n t and price range of a c c e p t e d bids.
T h ose s u b m i t t
ing tenders will be ad v i s e d of the a c c e p t a n c e or r e j e c t i o n
thereof.
Th e S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves the
right to a c cept or reject any or all tenders, in w h ole or in
part, and his a c t i o n in any s u c h respect shall be final.
Sub
ject to these reservations, tenders for $ 2 0 0 , 0 0 0 or less f r o m
any one b i d d e r at 9 9 . 9 0 5 e n t e r e d on a f i x e d - p r i c e basis will
be a c c e p t e d in full.
Payment of a c c e p t e d tenders at the prices
offered must be m ade or c o m p l e t e d at the Federal R e s erve B a n k
in cash or other i m m e d i a t e l y a v a i lable funds on April 18, 1946.
•
2
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r interest
or g ain f r o m the sale or o t h e r d i s p o s i t i o n o f the bills, shall
not have a ny exemption, as s u c h , ,and loss f r o m the sale or
other d i s p o s i t i o n o f T r e a s u r y bills shall not have any special
treatment, as such, u n d e r Federal tax Acts n o w or h e r e a f t e r
enacted.
The bills shall be subject to estate,
inheritance,
gift, or o t her excise taxes, w h e t h e r Federal or State, but
shall be exempt f r o m all t a x a t i o n n o w or h e r e a f t e r imposed on
the p r i n c i p a l or interest t h e r e o f by a n y State, or any of the
possessions of the United States^ o r b y a ny local taxing a u t h
ority.
For pu r p o s e s of t a x a t i o n the a m o u n t of d i s c o u n t at
w h i c h T r e a s u r y bills are o r i g i n a l l y sold b y the U n i t e d States
shall be c o n s i d e r e d to be interest.
U n d e r S e c t i o n s 42 and
117 (a)(1) of the Internal Revenue ^ode, as a m e n d e d b y S e c t i o n
115 of the Revenue Act of 1941, the a m ount of d i s c o u n t at
w h i c h b i lls i s sued h e r e u n d e r are sold shall not be c o n s i d e r e d
to accrue u n til suc h b i lls shall be sold, r e d e e m e d or o t h e r
wise d i s p o s e d of, a nd such b i l l s are e x c l u d e d f r o m c o n s i d e r
ation as capital assets.
Acco r d i n g l y , the o w n e r of T r e a s u r y
bills (other than life insurance companies) issued h e r e u n d e r
need inc lude in his income tax return o n l y the d i f f e r e n c e b e
tween the price paid for s uch bills, w h e t h e r on original issue
or on s ubsequent purchase, and the amount a c t u a l l y r e c e i v e d
either u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the taxable
year for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss.
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, and this
notice, p r e s c r i b e the terms o f the T r e a s u r y bills and g o v e r n
the c o n d itions of their issue.
Copi e s of the c i r c u l a r m a y be
obtained f r o m a n y Federal Reserve B a n k or Branch,
oOo
m
-
2
b* Salary increases which might be the FUTURE BASIS for higher price
ceilings or increased costs on government contracts— •Employer may make any
increase lie desires, but should file a notice of such increases, within
30 days after the increases are reflected in his payroll, with the regional
Salary Stabilization office. The filing of this notice will preserve the
right of the employer to subsequently seek formal approval of the increases
so that the increases may be then used as the basis for higher price ceilings,
c» Salary Increases which will be the basis for HIGHER PRICE CEILINGS or
higher costs on government contracts— Some of these increases are considered,
for the purpose of applying to OPA, to be automatically approved without any
notice or request to Salary Stabilization. In other cases these increases
must receive prior approval from Salary Stabilization in order to be considered
by OPA.
Those increases which are considered to be automatically approved m
include: Approved or lawful increases made prior to February 14, 1946,
or increases definitely committed prior to February 14 and actually put
into effect prior to March 15, 1946; increases in accordance with a
salary rate schedule or plan (including a bonus plan) which was lawfully
in effect before August 1&, 1945; increases pursuant to a governmental
recommendation in a wage controversy announced before February 14, 1946;
increases by an employer having eight or less employees in a single
business; limited vacation pay and differential pay for night shifts;
limited increases to employees under the Commissioner’s jurisdiction
equal to the dollar amount of increases granted other employees of the
same employer under an industry pattern approved by the National Wage
Stabilization Board» |
Upon application of the employer, approval will be given for:
increases consistent with the general pattern of salary adjustments in
a particular industry or locality; increases to correct inequities
between related industries when the inequities interfere with effective
transition to a peacetime economy; increases to compensate for the
33 per cent increase in the cost of living between January 1, 1941,
and September 1945.; increases to correct substandards of living; other
types of increases, not elsewhere covered, as provided in the standards
in effect on August 17, 1945.
Complete provisions of the revised regulations will be found in Treasury
Decision^ e f t b
as published in The Federal Register»
TREASURY DEPARTMENT
Bureau of Internal Revenue
Washington 25, D. C.
Joseph D. Nunan, Jr«, Commissioner of Internal Revenue, today liberalized
and clarified his Salary Stabilization Regulations in accord with the wage and
salary policies recently determined by the President and the Director of
Economic Stabilization. The Commissioner’s regulations apply to salaries in
excess of #5,000 and also to lower salaries paid to administrative, executive
and professional employees who are not represented by labor organizations.
In general, the Commissioner explained, his Salary Stabilization Regula
tions (not to be confused with m y nf hia tax regulations) restrict salary
increases only in the case of tejmployerft who, either presently or in the future,
may use such salary increases as a”has is for seeking higher price ceilings from
the Office of Price Administration, or to increase costs to the government on
government contracts. These regulations no longer affect the deductibility of
salaries for income tax purposes, except in the one instance of an existing
employer who, in setting \q > a new plant or department, raises salaries above
prevailing levels in his industry or locality.
Therefore, the general effect of these regulations is to permit employers
complete freedom of action to fix salaries in businesses whose products and
services either are outside of OPA price ceilings or for which no price ceiling
¿ T h e r e will be asked. In cases involving higher price ceilings or increased
costs on government contracts, the revised regulations grant automatic approval
without application in certain routine instances, but require formal application
for approval in other instances.
The principal provisions of the revised regulations are:
1. TMCAWFUL SALARIES— The only unlawful salaries are those established,
without prior approval of the Salary Stabilization Unit, in a new plant or
department of an existing employer at rates in excess of those prevailing in
the industry or locality. Such salaries may be disallowed as deductions on
the employer’s income tax return.
2. LAWFUL SALARIES— All salaries other than those mentioned in the pre
ceding paragraph are lawful (deductible for income tax by the employer, unless
’’unreasonable” according to traditional income tax standards). However, in
order to be considered as the basis for higher OPA price ceilings or increased
costs on government contracts, they must comply with the following rules:'
a. Salary increases which will HOT be used as a basis for higher niici
ceilings or increased costs on government contracts— Employer may make
any increase he desires, without any application or formality, whatsoever.
TREASURY DEPARTMENT
B u r e a u of I n t ernal Revenue
W a s h i n g t o n 25, D . C.
FOR R E L E A S E M O R N I N G N E W S P A P E R S ,
Saturday, A p ril 15, 1946_______
Press Service
No. V-297
J o s e p h D. Nunan, Jr., C o m m i s s i o n e r of Internal Revenue,
today l i b e r a l i z e d and c l a r i f i e d his S a l a r y S t a b i l i z a t i o n R e g u
lations in accord w i t h the w a g e and sala r y po l i c i e s r e c e n t l y
d e t e r m i n e d b y the Pre s i d e n t an d the D i r e c t o r of E c o n o m i c
S t a b i lization.
The C o m m i s s i o n e r ’s r e g u l a t i o n s a p p l y to s a l
aries in excess of $ 5 , 0 0 0 and also to l o wer salaries paid to
a d m i n i strative, e x e c u t i v e and p r o f e s s i o n a l emp l o y e e s who are
not r e p r e s e n t e d b y l a bor o r g a n i z a t i o n s .
In general, the C o m m i s s i o n e r explained, his S a l a r y S t a
b i l i z a t i o n R e g u l a t i o n s (not to be c o n f u s e d w i t h a n y of his tax
regulations) restrict salary increases o n l y in the case of e m
ployers who, e i t h e r p r e s e n t l y or In the future, m a y use such
salary increases as a b a s i s for s e e king h i g h e r price ceilings
from the O f f i c e of Price A d m i n i s t r a t i o n , or to increase costs
to the g o v e r n m e n t on g o v e r n m e n t contracts.
T h ese regu l a t i o n s
no l o ng er a f fect the d e d u c t i b i l i t y of salaries for income tax
purposes, e x c e p t in the one instance of an e x i s t i n g e m p l o y e r
who, In setting up a n e w plant or d epartment, raises salaries
above p r e v a i l i n g levels in his i n d u s t r y or locality.
Therefore, the ge n e r a l effect of these regu l a t i o n s is to
perm i t e m p l o y e r s compl e t e freedom of a c t i o n to fix salaries in
b u s i n e s s e s w h o s e p r o d u c t s and services e i t h e r are outside of
CPA price ceilings or for w h i c h no price c e i l i n g increase' wil l
be asked.
In cases inv o l v i n g h i g h e r price ceilings or i n
creased costs on g o v e r n m e n t contracts, the revised r e g u lations
grant a u t o m a t i c appro v a l w i t h o u t a p p l i c a t i o n in ce r t a i n routine
instances, but require formal a p p l i c a t i o n for approval in
o t h e r instances.
The p r i n c i p a l p r o v isions
of the
r e vised regu l a t i o n s
are:
1.
U N L A W F U L S A L A R I E S -The o n l y u n l a w f u l salaries are
those established, w i t h o u t p r i o r ap p r o v a l of the S a l a r y S t a
b i l i z a t i o n Unit, in a n e w plant or d e p a r t m e n t of an e x i s t i n g
employer at rates in excess of those p r e v a i l i n g in the i n d u s
try or locality.
S u c h salaries m a y be d i s a l l o w e d as d e d u c t i o n s
on the e m p l o y e r ’s income tax return.
2
2#
LAWFUL SALARIES
- All salaries o t h e r tha n those
m e n t i o n e d in the p r e c e d i n g p a r a g r a p h are lawful (deductible
for Income tax by the employer, u n l e s s " u n r e a s o n a b l e ” a c c o r d
ing to t r a d i t i o n a l income tax standards).
However, in order
to be c o n s i d e r e d as the b a sis for h i g h e r OPA price ceilings
or i n c r eased costs on g o v e r n m e n t contracts, they mus t c o m p l y
wit h the f o l l o w i n g rules:
a , S a l a r y increases w h i c h will NOT be u s e d as a
basis for h i g h e r price ceilings or i n c r e a s e d costs on
g o v e r n m e n t contract's
-- E m p l o y e r m a y m ake a ny increase
he desires, wi t h o u t any a p p l i c a t i o n or formality, w h a t
soever,
b • S a l a r y increases w h i c h m i g h t be the FUTURE B A S I S
for h i g h e r price ceili n g s or inc r e a s e d costs on g o v e r n
ment contracts
-- E m p l o y e r m a y make an y increase he
desires, but should file a n o t i c e of s u c h increases,
w i t h i n 30 days a f t e r the increases are r e f l e c t e d In his
payroll, w i t h the regional S a l a r y S t a b i l i z a t i o n office.
The f i l i n g o f this n o t i c e will pre s e r v e the right o f the
e m p l o y e r to s u b s e q u e n t l y seek formal a p p roval of the in
creases so t hat the increases m a y be t hen u s e d as the
basis for h i g h e r p r ice ceilings,
c • S a l a r y increases w h i c h will be the basis for
H I G H E R P R ICE CE I L I N G S or h i g h e r costs on g o v e r n m e n t
c o n t racts
-- Som e of these increases are c o n s i d e r e d , for
the p u r pose of a p p l y i n g to OPA, to be a u t o m a t i c a l l y a p
p r o v e d w i t h o u t any n o t i c e or request to S a l a r y S t a b i l i z a
tion,
In o t her cases these i n c reases m ust receive p r i o r
a p p r o v a l f rom S a l a r y S t a b i l i z a t i o n in o r der to be c o n
s i d e r e d by O P A ,
Those increases w h i c h are cons i d e r e d to be a u t o
m a t i c a l l y app r o v e d i n c l u d e : A p p r o v e d or lawful
I n c r eases mad e p r i o r to F e b r u a r y 14, 1946, or
increases d e f i n i t e l y c o m m itted p r i o r to F e b r u a r y
14 and a c t u a l l y put into e f fect p r i o r to M a r c h 15,
1946; increases in a c c o r d a n c e w i t h a sa-lary rate
schedule or p l a n ( i n c l u d i n g a bonus plan) w h i c h
was l a w f u l l y in effect b e f o r e A u g u s t 18, 1945;
increases pursuant to a g o v e r n m e n t a l r e c o m m e n d a
tion in a w a g e c o n t r o v e r s y a n n o u n c e d b e f o r e
F e b r u a r y 14, 1946; increases by an employer h a v
ing eight or less employees in a singie business;
l i m i t e d v a c a t i o n p a y and d i f f e r e n t i a l pay for
night shifts; l i m i t e d increases to emp l o y e e s
u n d e r the C o m m i s s i o n e r ’s j u r i s d i c t i o n equal to
the d o l l a r a m ount of i n c r eases gr a n t e d o t her
e m p l o y e e s of the same e m p l o y e r u n d e r an i n d u s t r y
p a t t e r n a p p r o v e d by the N a t i o n a l W a g e S t a b i l i z a
tio n Board.
5
U p o n a p p l i c a t i o n of the employer« ap p r o v a l will
be g i v e n for: increases c o n s i s t e n t with, the g e n
eral p a t t e r n of s a l a r y a d j u s t m e n t s in a p a r t i c u l a r
i n d ustry or locality; increases to correct inequ-^
ities b e t w e e n related i n d u s t r i e s w h e n the inequities
i n t erfere w i t h e f f e c t i v e t r a n s i t i o n to a p e a c e t i m e
economy; increases to comp e n s a t e for the 33 p e r cent
increase in the cost of l i v i n g b e t w e e n Ja n u a r y 1,
1941, and S e p t e m b e r 1945; increases to correct s u b
standards of living; o t her types of increases, not
e l s ewhere covered, as p r o v i d e d in the standards in
effect on August 17, 1945.
C o m p l e t e p r o v i s i o n s of the r e vised regu l a t i o n s wil l be found
in T r e a s u r y D e c i s i o n 5506, as p u b l i s h e d in the Federal Register.
oOo
I p
-
Involves more than a political struggle among economic
g r o u p s to p u s h the b u r d e n of ta xe s off o n t o e a c h other.
The future development of the economy, the Intensity
of bo om and depressions, the size of business concerns,
and the volume of business and employment may all be
Importantly affected, Indeed, almost certainly will be
im po rta nt ly af fe cte d b y the sort of tax poli ole s that
a r e a d o p t e d f o r the p o s t w a r p e r i o d * It is, a c c o r d i n g l y ,
of great Importance that tax Issues be considered in
the light of the best economic knowledge. We should
hope and strive to raise and keep the level of tax
controversy above narrow self-interest and group
i n t e r e s t a n d a l l w o r k t o g e t h e r to p r o m o t e the n a t i o n a l
Interest.
N
EB-dsd
4-/ 12/M-6
<1
' Ufcitf'/V
~ 31 -
the social security payroll taxes are taxes in every
sense of the word, ineluding their impact on the
economy and their implications for the equity of the
tax structure.
Their relation to each other and to
the general revenue structure should not he overlooked*
Conclusion
Any or all of the tax Issues which 1 have
discussed may arise in the consideration of postwar
tax revision.
It may he expected that most of them
will come up for consideration.
However, these are
not a ll of the problems and not even all of the major
problems which are likely to arise.
Thus, for example,
the question of taxing business operations carried on
by tax-exempt organizations will no doubt be considered.
There are also many minor substantive, technical, and
administrative changes that will be proposed by tax
payer® er others for consideration.
It would be
possible to f i l l several pages listing such Issues
but I obviously cannot do so at this time.
It is clear that the problems of taxation are not
a ll behind us.
The tax problems ahead have a serious
bearing for the future of the economy.
Tax policy
-
30
-
of the enforcement authorities to prevent the i l l i c i t
manufacture and distribution of liquor*
Some of the
excise taxes such as that applying to transportation
of property are largely business costs and thus
enter into the general price level.
S till other
excises apply to certain durable goods« such as
electrical appliances and business machines« and were
imposed partially to discourage consumption during the
war*
In addition to Issues concerning the relative
amount of revenue to be derived from the excise taxes,
the choice of excises to be retained, and the rates
to be applied, there will be less important issues In
some eases, such as whether the tax should be at the
manufacturer’ s level or the retail level*J
Payroll faxes
The payroll taxes for the financing of social
security are an important element of the tax system
which I shall not discuss at this time*
They are in
a somewhat special class and are affected by
considerations which do not arise in the case of most
other taxes#
It should be pointed out, however, that
- »9 In
gift
a number of
tax,
and
smoothly*
situations the estate
the i n c o m e
For
example,
t ax do not fit
income
State
t ax*
death taxes
logical
since
against
the
exemptions
the p r e s e n t
the SO-per c e n t
about
the
|6
taxes on
exemptions
may be
Taxes
in the fiscal
year
slightly over half of which
Many
of the
considered unsuitable
reconsidered
in the p o s t w a r tax revision.
exeise
tax,
tax rate wi l l be
was
came f rom
excise
for a peacetime period*
the
the l i q u o r
19^5
I m p o s e d o r i n c r e a s e d d u r i n g t he w a r
Accordingly,
of
and
i n the h i g h e r bra c k e t s *
liquor and tobacco.
taxes which were
and
r e l a t i o n to p r e s e n t
tqx yield
billion,
rates
taxes
which bear
of
the
the
1926
£ x e l se
exeise
of
is n o t v e r y
State
t a x is b a s e d o n t h e
particularly rates
The
tax may
r e l a t i o n of
credit of
the Revenue Act
relatively little
rates,
gift
to F e d e r a l d e a t h t a x e s
Federal
of
together
to t h e d o n o r f o r p u r p o s e s
Finally,
the
Income from property recog
n i z e d as t r a n s f e r r e d for p u r p o s e s of
still be a t t r i b u t e d
tax,
one
the
taxes will undoubtedly be
of t h e
effect of
factors
In the
determining
the r a t e
case
the
on the a b i l i t y
The q u e s t i o n arises as
should he m a d e
a more
to w h e t h e r
Important
these
revenue
taxes
source b y
l o w e r i n g e x e m p t i o n s an d a p p l y i n g h i g h e r rates.
Proposals
along
these
with objections
that
the r a t e s
reduced#
and
gift
policy
of
are already
taxes
are more
than to
that
should be
the l e v e l s
of
subject
substantial
gaps
benefits
the
concerning
the k i n d s
the
estate
trusts
and
other devices
i n the
estate
taxes
tax*
tax base
property may be
relation of gift
The use o f
creates
in that
onlji o n e t a x *
to e s t a t e
The p r e s e n t
taxis m a k e s it
able
to d i v i d e
the d i s t r i b u t i o n of their p r o p e r t y b e t w e e n
to g r e a t l y r e d u c e
i n t e g r a t i o n of
the
single
frequently been
of
remedying
this
gift and
situation.
the
enjoyed by more
f o r t h o s e p e r s o n s w h o are
tax has
soc i a l
and exemptions
to
than two generations w i t h
their estates
estate
tax p o l i c y ^ /
estates and
possible
felt
c l o s e l y r e l a t e d to g e n e r a l
are important questions
of
it is
too h i g h a n d
f r o m the q u e s t i o n of rates
transfers
life
some quar t e r s whe r e
It is p r o b a b l e
Aside
there
in
lines would certainly meet
the t o t a l
estate
taxes
gifts
tax*
and
An
into a
s u g g e s t e d as a m e a n s
- 27 the taxes on single persons above those due under
the present system.
Perhaps the family-income question will limp
along as i t has in the past, but I t would seem that
with the higher rates, accessions to the group of
community-property States, and the possible spread
of family partnerships and other methods of tax
avoidance, the problem is one which should be faced
in the near future«
ESTATE AND SIFT TAXES
There appears to be no great amount of general
public agitation for revision of the estate and gift
taxes,
Perhaps this is due to the fact that the
estate tax is levied only at death and falls on only
about one percent of adult deaths, while the gift
tax similarly reaches perhaps an even smaller propor
tion of individuals.
The combined revenue yield of
the estate and gift taxes is less than the liquor
tax or the tobacco tax*
In the fiscal year 19 ^5 ,
estate and gift taxes produced about it percent of
the total Federal revenue«
~ 26 •
Some y e a r s
compulsory
of
ago,
the t r e a s u r y Depart m e n t p r o p o s e d
Joint returns as a
taxing family
would treat all
Income«
Income o r i g i n a t e d in
the
husband,
the wife,
Joint returns
the property
or b o t h of
and efforts
them»
However,
joint r e t u r n s w e r e i n force,
persons who married might
higher total
total
Compulsory
families alike r egardless of w h e t h e r
the
compulsory
sol u t i o n f or the p r o b l e m s
after marriage have
This prospeot
on the
ground
that
gave
to pay
say,
the p r o p o s a l fo r
same
to great
compulsory
discriminated against marriage and
H e e d l e s s to
rise
if
single
taxes than t h e y did b e f o r e on the
income*
opposition
two
of
Joint
the family*
compulsory
returns
fsspmixfluy
Joint
returns was defeated*
Mother
problem,
approach Is possible
namely,
results
compulsory
All
In ail
similar In some
families w o u l d be
schedule while
increases
States*
respects
joint returns a nd opposite
to make
up
to
This would
those
of
in o t h e r respects*
treated alike but most married
couples would pay lower taxes
rate
family-income
to a l l o w u n i v e r s a l d i v i s i o n o f I n c o m e
between husband and wife
have
to t h e
than
today at any
single persons would
not*
t he l o s s o f r e v e n u e w o u l d
given
Hate
increase
- 25 -
a dilemma*
I t Is a dilemma which cannot he solved by
lowering everyone1« taxes; obviously the money must
come from somewhere*
Family Incomes
A somewhat less important income tax problem is
also likely to arise, namely, the problem of taxing
the Income of families*
like many other tax problems,
this one is becoming more acute with the passage of
time and Is accentuated by high tax rates*
The married
couples in community property States have long enjoyed
an advantage In Federal taxation which persons In the
oommon-law States have contended is far out of
proportion to any difference in the actual status of
members of the family*
§n the other hand, in common-
law States the practice has been common to reduce
Income taxee by making gifts of property from one
spouse to the other.
More recently many family partner
ships have been set up, often In an effort to split the
Income* Perhaps the Supreme Court* s recent decisions
will discourage this practice, but i t is not clear just
where the line can or should be drawn*
the tax rates for the bottom brackets In order to
prevent undue reduction of consumer purchasing power*
There will be demands to decrease the rates on the
lower middle class on the ground that this class is
the backbone of democracy and that our society is
headed for trouble if the middle class is discouraged
or destroyed«
There will be demands to decrease the
rates of taxation on exeoutlves in order to restore
their incentives to take risks and expand their
businesses and undertake more difficult Jobs«
To
this end, there will undoubtedly be demands for a sub
stantial earned income credit to reduce the tax on
compensation and other earned income below the tax
on investment income# However, there will also be
demands to decrease the tax rates on Income from
Investments in order to encourage people to take
risks and put their money in new investments«
Undoubtedly I have missed some of the Important
demands*
In other words, every group can and does
make the argument that lower taxes on its particular
OAAj
segment of income^*# Important for the sound economic
growth of the Hation*
These conflicting views present
23
-
Income
Tax Rates and Exemptions
Still anot h e r
tax problem which
solution f o r
is
differential between
a n d that
the r a t e
r e d u c e d b y l o w e r i n g the
problem and
will
for
reduction
is,
tax problem#
Is that
eliminated
stress
reduction for
the m i d d l e
some
Investment
for earned
incomes#
a very
income#
of course,
to t h e
This
a general
solution of
the
demands for
individual
the b o t t o m
still others
Incomes,
for
Some
others
t he h i g h e s t
incomes and others for
may be
sure t h a t
everyone
d e m o n s t r a t i n g the
will
economic
of his proposal*
there will be demands
and dependent
exemptions
We
gains
U n d o u b t e d l y in a n y p o s t w a r
strong argument
desirability
Thus,
incomes,
the
or
t a x r e d u c t i o n at m a n y d i f ferent points#
Incomes;
have
be
taxes on other
tax revision there will be
Income
capital gains
Imposed on capital
Income
not one limited
capital gains
the
sometimes proposed
Imposed on other
p r o b l e m of r ate
-
are
especially for
e x e m p t i o n s on the
b e l o w t he
to r a i s e
ground
There will be demands
that p r e s e n t
minimum living
single indiv i d u a l s and
to r a i s e
the
the p e r s o n a l
standard,
small families*
exemptions
and lower
Certainly none of the many proposals f o r changing
the capital gains tax system would satisfy all of
these people« It has been proposed to subject capital
gains to full taxation, allowing full deduction for
losses, w i t h averaging over a period of years« It has
be e n proposed to accrue the Increases In value and
the decreases In value and tax them p r i o r to realisation«
It has been pr op ose d to separate realised capital gains
and losses completely from other Income and to subject
them to a separate rate schedule« It has been proposed
to continue the present taxing method, on the one hand,
w i t h a longer holding period and higher rates, and on
the other hand, with a shorter holding period and
l o w e r rates« Finally, It has been proposed to completely
exempt capital galas from taxation«
The capital gains tax field thus does not appear
to be a good pl ac e to take a dogmatic position« Perhaps
It would be feasible to approach the problem through
new methods of classifying capital gains, recognising
di ff ere nc es in assets, in the causes of the gains, and
In their significance for the economy« 1 hasten to say
I have no practical suggestions along this line bu t the
difficulties of the past suggest the desirability of
some kind of new approach for the future«
21
h e l d until death,
p & y principle*
may
conclude
the
sale o f
the
the
close
capital
same
speculative
situation!
may
to b u y
it t h e r e f o r e
accentuates
Anot h e r pex&on,
oonoluds
securities as
security markets
gains tax discourages
booms*
enttally low rate of capital
people
to the
s e c u r i t i e s jand t h a t
and prolongs
at
a m a j o r v i o l a t i o n In the a b l l l t y - t o -
A person
that
-
that
looking
ths d i f f e r -
gains taxation
induces
the e a s i e s t w a y to m a k e
net
income
after taxes and
the
boom*
Still another person may think what happens
to
the
stock market
c o u n t r y as a w hole
effects of
the
m u c h in his
inducement
to b e
thus causes © r
of l i t t l e
consequenoe
and accordingly w ould not
capital
Judgment*
gains
them to r e s i g n
let
to h i g h - I n c o m e
t ax rate«*
executives,
their positions and
k e e p u n til d e a t h o r sell
the
the
causing
eeek their fortunes
their own,
subject to the
which
they may
capital
Ano t h e r person may think this result
in
stimulating the
d i s t r e s s e d b y the
m a n y of t h e m
wh l o h are b e i n g made
successful ~
t r ansform o r d i n a r y income
h i g h e r rates*
gains
is
growth of n e w businesses*
Still other persons may be
the
the
tax on the market weight
One person may deplore
b y building up businesses of
escape
to
that the d i f f e r e n t i a l l y l o w capital g a i n s
tax rate presents
desirable
stimulates
into
efforts —
to
capital gains and thus
20
-
p o s t w a r tax revision* Fe w pr ov isi on s of the income
ta x law have been more frequently changed or given
rise to more d i s s a t i s f a c t i o n than those relating to
capital gains and losses# The story of the blind men
and the elephant is pe cu lia rl y applicable to capital
g a i n s a n d lo s s e s * Th er e ar e so m a n y d i f f e r e n t w a y s of
looking at them which affect the attitudes towards
th ei r taxation* Thus» one pe rs on w a t o h l n g the rise and
fall In security values may conclude that capital gains
are not Income at all but accretions to capital and
that as such they should not be taxed* Another person»
observing the fur eoats» Jewelry» entertainment» trips
to Florida» and other expenditures being financed from
capital gains will be convinced that capital gains are
certainly income» at least in the minds of the people
who receive them* A person whose job is to maintain
investment portfolios In the best possible condition
and who must oonstantly buy and sell securities wi th
this In m i n d w i l l see In the ta x on capital gains an
ob s t a c l e to so u n d I n ve stm en t po licy* A p e r s o n wh o is
s e n s i t i v e to i n e q u i t i e s m a y see in t h e f a i l u r e e v e r to
tax as income the capital gains which accrue on securities
- 19 -
be in g spread re la tiv el y ev en ly over a period of years*
Authors, actors, professional men, and businessmen
alike often work for many years for a moderate return
a n d f i n a l l y m a k e a Mk i l l i n g 11 i n s o m e o n e o r t w o y e a r s *
While on the average their income remains moderate
f o r the p a r t i c u l a r year, it ex te nds to the h i g h e r
brackets and they may derive relatively little from
it net of tax*
Unfortunately, the application of averaging plans
thus far devised would greatly complicate the income
tax system* Perhaps averaging would be wo rt h the
a d d i t i o n a l c o m p l i c a t i o n , no t o n l y b e c a u s e it w o u l d
reduce inequities but also be ca use It wo ul d reduce to
some extent business risks.
C a p i t a l G-alns a n d L o s s e s
A particular type of income for w h i c h averaging
has been pr oposed is eapltal gains* Capital gains taxed
In the year of realisation have often accrued over a
l o n g pe riod of years* Av er agi ng wo u l d spread the income
and thus in some cases reduce the tax* Quite aside from
averaging, however, a reexamination of the taxation of
capital gains and losses ma y occur in connection w i t h
IS
-
the effect of av er agi ng is to pr ev ent the h u n c h i n g
of Income r e c e i v e d In sp ecific years a n d taxed In the
absence of averaging at higher bracket rates* Incomes
f r om no nb usi ne ss sources receive no tax re li ef from
these carryovers*
A recent p r op osa l Is to al l o w a ca rr yba ck and
a carryover of unused exemptions somewhat analogous
to the carryback and carryforward of business losses.
Thus» If a f a m i l y In one ye a r has Income less than the
personal and dependent exemptions» while In the next
y e a r It h a s I n c o m e I n e x c e s s o f s u c h e x e m p t i o n s a n d
ac cordingly subject to tax» the un used exemption of the
earlier year could be carried forward and offset against
the taxable Income ©f the later year* The carryback
and carryover of unused exemptions would» of course»
benefit only those Individuals whose incomes In some
years fall b e l o w the exemption level» but there are
millions of such
;
There are ma „
luals wh o do not have busi nes s
losses and whose incomes do not fall below the exemption
level who nevertheless pay higher taxes because their
Incomes are bunched in occasional years instead of
received in a steady stream» Conceivably, the taxes
on wi dely fl uc tua ti ng Income may be more than the
total Income over a period of years*
Our tax syitam has already taken into account
these defects by introducing elements of averaging*
B u s i n e s s Inco mes and lo ss es are a v er age d to the extent
that losses may be carried back for two years and
carried forward for two years* There are also minor
specific pr ov isi on s, no ta bly the o p t i o n to lawy ers and
some other g r o u p s to average income wh er e income earned
o v e r a p e r i o d o f j6 m o n t h s o r l o n g e r i s r e c e i v e d i n
concentrated form*
Further extension of the averaging principle may
be considered in postwar tax revision* Thus longer
carryovers of business losses have been proposed,
although in pa rt the lengthening of the period would
be fo r the purpose of re pl aci ng the tw o-year carryback
which has proved defective in a number of respects*
A c a r r y o v e r o f l o s s e s Is, of course, not the e q u i v a l e n t
of complete averaging for businesses* Both individuals
a n d c o r p o r a t i o n s are su bj ect to p r o g r e s s i v e ra t e s an d
•
16
-
by reducing the corporate tax rate and the individual
tax rate* These and other methods o f taxing corpora
tions have been proposed and are under consideration*
There seems to be vide disagreement even, and perhaps
1 should say particularly, among businessmen as to
w h i c h method w o u l d in the l o n g r u n have re la tiv el y the
most desirable effect on the economy*^/
Averaging of Income
One reason for concern about corporation taxation
Is the belief that business expansion and the willing
ness to take risks are reduced thereby* This reason,
as well as others, also underlies proposals for the
more effective averaging of income over a period of
years* The Income accounting period under our income
t a x sy st em is, of course, a 1 2 - m o n t h c a l e n d a r or fiscal
year* The accounting year is defective in that there
are many items of Income and expense which cannot
readily be attributable to any specific one-year period*
Perhaps more Important is the fact that w i t h the one-year
accounting period fluctuating Incomes commonly pay more
t a x e s th an If the same t o t a l am o u n t of Income is
bond interact is now deductible* This has been objected
t© in some q u a r t e r s because of Its re se mbl an ce to the
undistributed profits tax*
Another proposed method Is the partial exemption
of d i v i d e n d s r e c e i v e d b y s t o c k h o l d e r s eo a s to a l l o w
for the tax pa i d by the corporation* This has a number
of disadvantages| among them the fact that where the
corporation succeeded In shifting Its tax the stock
holder wo ul d be receiving a special tax reduction not
available to anyone else*
Still another proposal is to treat the corporation
tax as a withholding tax and to treat dividend income
for tax purposes In a manner similar to salaries and
wages* That is* the tax w o u l d be computed to the
stockholder on the basis of gross dividends before
the withholding of tax and the stockholder would be
given a tax credit for the tax withheld and paid on
his behalf by the corporation* This method is followed
in Great Britain*
There are* of course* many people who would prefer
to make no change In the structure whatever, allowing
the double taxation to continue but reducing Its scope
altogether* these proposals not only reflect a lack
of political reality hut also leave unsolved the
pr o b l e m of the ac cumulation of untamed profits In the
corporation* Proposals for repaid of corporate taxation
are sometimes accompanied by proposals for forcing
p r o f i t s o u t o f t h e c o r p o r a t i o n *j
Another proposal would tax corporations like
p a r t ner sh ip s, th a t is, the c o r p o r a t i o n w o u l d p a y no
tax as such but stockholders would be taxed on their
distributive share of the undi str ib ut ed profite of the
corporation* fhla also seems an unrealistic proposal,
especially if applied to larger corporations w i th many
stockholders* for one thing, the tracing of the
eventual ownefs of the undistributed profits would be
an extremely complicated matter with respect to many
corporations* Moreover, many stockholders would be
placed In the embarrassing position of having taxes
to pay without any satisfactory method of getting funds
w i t h w h i c h to p a y them*
k third proposal Is to permit corporations to
deduct In whole or In part the dividends they p a y on
preferred stock and common stook in the same manner as
m %3
*
To the e x t e n t to w h i c h there Is d o u b l e t a x a t i o n
©f corporate profits income earned through corporations
is taxed at substantially higher rates than is other
income, and the distribution of the tax is not In
accordance with a system of progressive rates*
Where corporate profits are not distributed, the
income earned t h r o n g the corporation is in numerous
cases taxed at highly favorable rates in comparison with
business income earned through proprietorships or
partnerships, and in comparison with other income*
Correcting the situation Is not a simple problem*
The prices of outstanding corporate securities have
become adjusted to the present tax system* A substantial
reduction of the so*called double tax would give
undeserved windfalls to the many owners of these eecur~
itlee who purchased them under the expectation of taxes
no more favorable than those impoeed under existing law*
The future investment in new oorporatione, however,
will depend on a prospect cf income sufficient to pay
b o t h the corporate tax and the individual tax*
X o u are no doubt familiar with moat of the proposed
plans f o r re vi sin g the corporate tax structure* At one
extreme are proposals to repeal the oorporate ta x
-
12
-
to read a Treasury position into my remarks, especially
sine# many of the matters are still in the study stage
wh ic h must precede, or at any rate ought to precede,
the determination of an official position*
Corporation faxes
A problem which has received a great deal of con
sideration both inside and outside of the Government
concerns the position of the corporation in the tax
structure« It is g e n e r a l l y r e c o g n i s e d that the p r e s e n t
methods of taxing corporate Income leave m u c h to be
desired» W h e r e corporate pr of its are di st rib ut ed to
stockholders an element of so-called "double taxation"
results slnoe the corporate Income is subject to tax
once at the corporate level, and the remaining Income
again at the individual level» The extent to which this
double taxation Is real as well as apparent depends In
large part on the extent to which the corporation le
able to shift its taxes to other people, for example,
workers or customers» If there is complete shifting
the double taxation disappears and if there is partial
shifting the double taxation is reduced*
of current estimate has proved worrisome to some people ,
wh ic h is probably due to a n imperfect knowledge of the
alternative methods of estimating which are allowed«
But there are great advantages* The current payment
system is more convenient, makes payment easier, and
results in more complete collection* There are
occasional complaints but it is my impression that
employers, employees, and professional people alike
are in general we ll pleased w i t h the system an d would
not wish to see It repealed. It Is Important to live
up to the spirit of the current payment system as well
a s to Its l e t t e r b y k e e p i n g g e n u i n e l y curr ent th ro ugh *
out the year and not merely catching up by the end of
the year. The people w h o are most pl e a s e d w i t h the
system seem to be those who deliberately overpay their
t a x so t h a t t h e y a r e c e r t a i n to b e o u t o f d e b t t o the
Government for tax liability*
Al th oug h it w o u l d be foolhardy to forecast probable
postwar tax revisions, it may be helpful to examine
briefly some of the questions or issues that are likely
to come up for consideration. I hope you will not try
—
10
tiler# b y p o l i t i c a l p r e s s u r e b r o u g h t t © b e a r b y
interested taxpayers# that kind of an anomaly is
v e r y h a r d to get out of the tax system*
One of the revolutionary Innovations of the
wartime period is our system of current individual
income tax payment» Including the withholding by
employers of tax on salaries and wages, and the esti
mating and current quarterly payment of tax on income
not subject to withholding# the first official rscom
mendation fo r withholding was probably that of the
Secretary of the treasury, Mr# Morgenthau, in
H o v e m b e r 19*1-1 • W i t h h o l d i n g e n t e r e d t h e t a x s y s t e m i n
a s m a l l w a y w i t h t h e V i c t o r y t a x i n J a n u a r y 19**3 a n d
was put on substantially the present basis in July
19*1-3 fry t h e C u r r e n t t a x P a y m e n t A c t # t h i s a c t a l s o
provided for the system of estimate 9as well as a
m e t h o d of t r a n s i t i o n from the o l d to the n e w collection
method#
these new methods of income tax payment are not
perfect# the wi th hol di ng system tends to keep a pe rs on
from having a clear knowledge of his income on the one
hand and of his Income taxes on ths other# the system
- 9 -
lag In publlo understanding. 1 suspect that people
would rather not hare their attention called to taxes
by frequent changes, especially those that are In an
upward direction.
Occasionally people wh o ought to kn ow b e t t e r talk
as If they aspect a brand new and entirely different
t a x system to result from po st war tax revision, Such
expectations are not Justified, the pessimistic
s t a t e m e n t f r o m t h e B i b l e t h a t “T h e r e I s n o n e w t h i n g
under the su n“ Is almost true of taxation# There have
b e e n constructive de v e l o p m e n t s and/there will no doubt
be new ones hereafter, but there Is nothing known now
to justify the Idea of a radical change in the forms
of taxes# The present Federal tax system has been
developed over a quarter of a century or more and is
*%%&&&**
the result o f a % o o d de a l of thought a n d effort on the
A
part of many people# The best taxes known In the world
today are by and large being used by the Federal
Government* They contain many curious anomalies but
w i t h minor exceptions these are not there either by
accident or because of ignorance, but have been put
~ g H o w e v e r , e v e n f o r t h e m s i m p l i c i t y stay n o t b e a n u n m i x e d
bl e s s i n g « It is of te n a t t a i n a b l e o n l y at the sacrifice
of equity and perhaps of desirable economic objectives*
the complexities of the individual income tax are due
in very large measure to the demands of taxpayers for
a n income ta x w h i c h w i ll b e as fair as It is po ss ibl e
to make It*
M o t h e r factor not to be overlooked le that the
postwar tax structure will be limited In part by the
machinery and procedure through which changes in tax
laws must be made. An Idea that has been proposed
frequently of late is that tax rates and exemptions
should be rapidly moved up and down as economic condi
tions change In order to offset such changes. This
p r o p o s a l h a s b e e n g i v e n t h e n a m e “f l e x i b l e 8 t a x a t i o n .
It Is an attractive Idea an d some day it may be a
reality* But traditional procedure for changing tax
ra te s and ex em pti on s do not le nd themselves to the
kind of speed required for flexible taxation and even
If they did the public wo ul d undoubtedly be bewildered
a n d resentful at b e i n g f o r o e d to adjust themselves to
frequent changes. At best there is often a considerable
-
7-
In e m p h a s i s i n g e q u i t y a n d e c o n o m i c o b j e c t i v e s ,
ire s h o u l d n o t l o s e s i g h t o f t h e I m p o r t a n c e o f a d m i n *
iStratton* Many a tax that looks ideal on paper is
wo rthless because it cannot be administered by a
reasonable expenditure of Government expense and
taxpayer inconvenience* the latter is particularly
important} for a tax measure oannot be expected to
oontlnue to operate effectively if the taxpayer is
unable to comply with it by a reasonable amount of
time and effort* 1 do not have time here to discuss
the possibility of simplification In ths postwar tax
system* I should like to point out* however* that
simplicity for the many is much more Important than
simplicity for the few, Ma ny of the more complicated
provisions of the tax laws apply to relatively few
taxpayers who have large and complex businesses and
can afford to em pl oy the p r o f ess io na l talent ne c e s s a r y
to prepare the necessary accounts and returns* Much
more important than simplifying those provisions Is
simplification affecting ths multitudes of small tax
payers who should have a tax system which does not
require them to employ professional tax experts*
problem of promoting and maintaining a high level of
business activity and employment* We have b y no means
forgotten the long period of deflation and depression
w h i c h m a r k e d t h e g r e a t e r p a r t o f t h e 19 30 * e* A c c o r d
ingly, when postwar tax revisions are made, an Important
objective will undoubtedly be to remove restrictions
that reduce the volume of business activity and employ
ment* there are a number of ways in which taxes may
reduce the v e l u m of business aotivlty and smployment*
A n obvious one is b y repressing demand, bo th consumer
demand for goods and services and investment demand for
labor, materials, and capital goods* Without a high
level of consumer demand and investment demand, markets
w i l l be inadequate to absorb the goods poured out at
a high level of production and employment, with deflation
and depression the inevitable result* Accordingly, tax
r e v i s i o n s h o u l d b e made w i t h a n eye to m i n i m i s i n g the
repression on consider and investment demand* X am
quite w a r e that this is m u c h easier to say than It is
to carry out in a tax program* The clear implication
le that the heaviest taxes should rest on savings which
are not used to create demand for newly produced capital,
but a practical t a x to achieve this result has not yet
be e n developed, or at any rate has not come to our attention
.
Taxation has another hearing on Inflation» The
best preventive and cure of inflation is to increase
p r o d u c t i o n » T a x p o l i c y oan c o nt rib ut e to this e n d b y
minimising the restrictions which taxes place on
production»
t do not want to leave the impression that taxation
is in Itself a sufficient method of combatting inflation,
For one thing, public resistance to Increasing taxes
when they are needed for inflation control may make
t h e i r e f f e c t i v e us e i m p o s s i b l e . M o r e o v e r , t a x a t i o n is
too unrefined an instrument for oertaln kinds of infla
tionary situations» Thus, after a great wa r the extent
of the shortages of different goods and servions vary
so w i d e l y that no general Impact on p u r c h a s i n g p o w e r
could meet the problems existing in different industries*
Hinder t h e s e c i r c u m s t a n c e s s p e c i f i c c o n t r o l m e a s u r e s a r c
required in addition to a general anti-inflationary
fiscal policy*
alth oug h over the last few years we have continually
h a d to fees the threat of inflation, over our national
economic history as a whole this has been a relatively
uncommon condition* Mu ch more common has been the
"The tax structure that the Government can best
live with will produce the revenue needed to carry on
the functions of Government«
It will distribute taxes
in a manner designed td serve the ends of national
^
Si-'V
economic policy« It will be made up of taxes which
can be administered fairly and economically«
"the t a x structure w h i c h the economy can beet live
and prosper with will rely on those tax measures which
strengthen the forces making for a high level of national
Income and that tend to offset the forces making for
instability in our economy.*
One of the economic objectives of tax policy which
Is particularly important at this time is to combat
Inflationary pressure« throughout the war, as well as
at the present time, the demand,aspecially for consumers1
goods and services^hae b e e n excessive in relation to
supply, with resulting pressure towards Inflationary
increases in prices» taxes help to combat inflationary
pressure by draining off spendable funds into|the treasury
a n d t h e r e b y r e d u c i n g t h e d e m a n d f o r g o o d s « ttien t h e s o u r c e
of the demand is governmental expenditure In excess of
revenue, taxes are particularly appropriate as a method
of combatting inflationary forces.
I
- 3III
view of the undesirability of tax reduction,
this is not the time for structural revision either
slnoe most, if not all plans, for the postwar structural
revision of the Federal tax system would Involve
reduction of revenues«
This does not imply any abandonment of the idea
that postwar tax revision will be needed«
Bather it
suggests that the present is a good time to examine
the problems of postwar tax revision«
Let us pa ss in brief review the objectives to be
a c h i e v e d i n a r e v i s i o n o f t h e t a x s y s t e m « I n h i s 19^5
A n nu al Report, Secretary of the trea sur y Vi n s o n outlined
these objectives as follows:
"Broadly stated, our objective is a tax structurs
w i t h wh ic h the taxpayer, the Government, and the national
economy can live and prosper#
"the tax structure that taxpayers, b o th individual
a n d c o r p o r a t e , c a n b e s t l i v s w i t h w i l l m e e t t h e test o f
fairness by relying on levies based on ability to pay*
It will leave the individual adequate incentive to risk
his funds in productive enterprise« It will be made up
of taxes which are easy to understand and simple and
convenient to pay«
2
We art still very m u c h In the period of transition*
Government expenditures are declining more rapidly than
was expected but are still a long w a y above the probable
postwar level* * .|nflatlonary pressures are very strong
an d thi p r o b l e m s o f »holding the pr i c e line an d m a i n t a i n
i n g a s t a b i l i z e d e c o n o m y c o n t i n u e to b e seri ous *
As the prospects of achieving a balanced budget
a p p r c a c h e s fw i t h the p o s s i b i l i t y of h a v i n g a b u d g e t a r y
surplus! there are some demands for further tax reduction*
Surely it Is not a crime for the Federal Government to
have a budgetary surplus and the retirement of debt which
It ma ke s po ss ibl e* A time of strong In flationary forces
w h e n Incomes are high is the ideal time for a budgetary
su rp lus * In a statement la st T h u r s d a y (April 11, 19^6),
P r e s i d e n t T r u m a n said: "It Is the a i m of our fiscal
p o l i c y t o b a l a n c e t h e b u d g e t f o r 19^7 a n d t o r e t l t%/
national debt In boom times such as these* In our present
fight against Inflation# fiscal policy has a vital role
to play* A continuation of our present policy# which
Is to m a i n t a i n the ex is tin g t a x structure fo r the present,
an d to a v o i d nonessential expenditures# is the be s t
fiscal contribution we can make to economic stability*"
THE ROAD AHEAD IN TAXATION
T h e y e a r 19*1*6 m a y w e l l t u r n o u t t o h e a q u i e t
year wi th re sp ent to tax legislation« This Is not a
forecast* The unexpected happens too often In taxation
to permit forecasts* It Is only a projection Into the
future o n the ba si s of ev en ts to date«
It Is n o t surprising that this should be a qu ie t
tax year* The tax problems of transition were promptly
a t t a c h e d I n t h e T a x A d j u s t m e n t A c t o f 19*4*5 a n d t h e
R e v e n u e A c t o f 19*M>« T h e f o r m e r m a d e c u r r e n t l y a v a i l a b l e
for the reconversion period postwar tax benefits which
had been provided in wartime revenue acts* The Revenue
A c t o f 19*4*5 r e p e a l e d t h e e x c e s s p r o f i t s t a x , t h e c a p i t a l
s t o c k tax, a n d the au tomobile use tax, a n d re d u c e d
personal and corporate Income taxes* B y and_large the
c h a n g e s m a d s i n t h e t a x l a w s o f 19*4-5 w a r e d c s l g n c d j k o
promote reconversion and the expansion of peacetime
business* They were me asures for the transition psrlod
and wars not looked upon as accomplishing postwar tax
revision«
TREASUKI DEPARTMENT
Washington
FOR RELEASE 9 0 0 A,M,* E.S.T.*
Monday, April 15« -194-6«
Press Service
No,V-29S
(ihe following address by Roy Blough* Assistant
to the Secretary, before the Twelfth Eastern
Spring Conference* Controllers Institute of
America* at the Waldorf Astoria Hotel* New York
City* is scheduled for delivery at 9 »30 A »II«,
E.S.T., Monday«-, April-15» 194.6* and is for
release at that time,)
The year 194-0 may well turn out to be a quiet year with
respect to tax legislation.
This is not a forecast.
The
unexpected happens too often in taxation to permit forecasts,
It is only a projection into the future on the basis of events
to date.
It is not 'surprising that this should be a quiet tax year.
The tax problems of transition were promptly attacked-in the
Tax Adjustment Act of 1945 and the Revenue Act of 1945*
The
former made currently available for the reconversion period
postwar tax benefits which had been provided in wartime revenue
acts* The Revenue Act of 1945 repealed the excess profits tax*
the capital stock tax* and the automobile use tax* and reduced
personal and corporate Income taxes. By and large the changes
made in the tax laws.of 1945 were designed to promote recon
version and the expansion of peacetime business. They were
measures for the transition period and were not looked upon as
accomplishing postwar, fax revision.
We are still very much in the period of transition..
Government, e^periditures are declining more rapidly than was
expected but are still a long way above the probable postwar
levels Inflationary pressures are very strong and the problems
of holding the price line and maintaining a stabilized economy
continue to be serious.
A s ‘the prospect of achieving a balanced budget approaches*
with the possibility of having a budgetary surplus* there are
some demands for further tax reduction. Surely it is not a
crime for. the Federal Government to have;a budgetary surplus
and the retirement of debt which it makes possible. A time of
strong inflationary*forces when ihcoifi.es are high is the ideal
time for a budgetary surplus• In a statement last Thursday
(April 11* 1946)* President' Truman said: "It is the aim of our
fiscal policy to balance the budget for 1947 and to' retire.national
debt in boom times such as these. In our present fight against
inflation* fiscal policy has a vital role to play.’ A continuation
of our present policy* which is to maintain the existing tax
structure for the present* and to avoid nonessential expenditures*
is the best fiscal contribution we can'make to economic stability,”
- 2 -
In view of the undesirability of tax reduction, this is also
not the time for structural revision since most,, if not all, plans
for the postwar structural revision of the Federal tax system
would involve reduction of revenues*
This does not imply any abandonment of the; idea that post
war tax revision will be needed* Rather it suggests that the
present is a good time to examine the problems of postwar tax
revision.
Let us pass in brief review the objectives to be achieved
in a revision of the tax system* In his 194-5 Annual Report,
Secretary of the Treasury Vinson outlined these' objectives as
follows:
"Brpadly staled, our objective is a tax structure with
which the taxpayer, the. Government, and the national economy
can live and prosper*
".The tax structure that taxpayers, both individual and
corporate, can best live with will meet the test of fairness
by relying on levies based on ability to pay* It will leave
the individual adequate incentive to risk his funds in pro-,
ductive enterprise* It will be made up of taxes which are easy
to understand and simple and convenient to pay*
"The tax structure that the Government can best live with
will produce the.re venue needed to carry on the functions of
Government, It will distribute taxes in a manner designed to
service the ends of national economic policy, it will be made
up of taxes which can be administered fairly and economically.
"The tax structure which the economy can best live and
prosper with will rely on those tax measures which strengthen
the forces making for a high level of national income and that
tend to offset the forces making for instability in our economy."
One of the economic objectives of tax policy which is
particularly important at this time is to combat inflationary
pressure.
Throughout the war, as vie11 as at the present time,
the demand, especially for consumers’ goods and services, has
been excessive in relation to supply, with resulting pressure
towards inflationary increases in prices.
Taxes help to combat
inflationary pressure by draining off. spendable funds into the
Treasury and thereby'reducing the demand for goods* "ftTien
the source of the, demand is governmental expenditure in excess
of revenue, ..taxes are particularly appropriate as a method of.
eombatting inflationary forces*
' •• . 1
Taxation has another bearing bn'inflation.
The best
preventive and cure of inflation'is to increase production. Tax
policy can contribute to this end by minimizing the restrictions
which taxes place on production*
I do not want to leave the impression that taxation is in
itself a sufficient method of combatting inflation# For one
thing, public resistance to increasing taxes when they are
needed for inflation control may make their effective use
impossible* Moreover, taxation is too unrefined an instrument
for certain kinds of inflationary situations, Thus, after a great
war the extent of the shortages of different goods and services
varies so widely that no general impact on purchasing power
could meet the problems existing in different industries* Under
these Circumstances specific control measures are required in
addition to a general anti-inflatioriary fiscal policy*
Although over the last few years we have continually had
to face the threat of inflation, over our national economic
history as a whole this has been a Relatively uncommon condition.
Much more common has been the problem of promoting and maintaining
a high level of business activity arid employment* We have by rio
means forgotten the long period of deflation and depression which
marked the greater part of the 1930’s* Accordingly, when postwar
tax revisions are made, an important objective will undoubtedly
be to remove restrictions that reduce the volume of business
activity and employment* There are a number of ways in which
taxes may reduce the volume of business activity and employment.
An obvious one is by repressing demand, both consumer demand' for
goods and services and investment demand for labor, materials,
and capital goods. Without a high level of consumer demand and
investment demand, markets will be inadequate to absorb the goods
poured out at a high level of production and employment, with
deflation and depression the inevitable result. Accordingly,,
tax revision should be made with an eye to minimizing the
repression on consumer and investment demand. I am quite aware
that this is much easier to say than it is to carry out in a tax
program. The clear implication is that the heaviest taxes,
should rest on savings which are not used to create demand for
newly produced capital, but a practical tax to achieve this
result has not yet been developed, or at any rate has not come
to our attention*
v
In emphasizing, equity and economic objectives, we should
not lose sight of the importance of administration. Many a
tax that looks ideal on paper is worthless because it cannot ...
be administered by a reasonable expenditure of Government
expense and taxpayer inconvenience. The latter is particularly
important, for*a tax measure cannot be expected to continue to
operate effectively if the taxpayer is unable to comply with it
by a reasonable amount .of time and effort. I do not have time
here to discuss the possibility of simplification in the postwar
tax system* I should like to point out, however, that simplicity
for the many is much more important than simplicity for the few.
Many of the more complicated provisions of the tax laws apply
to relatively few taxpayers who: have large and complex businesses
and can afford to employ the professional talent necessary to
■s?
- A “
prepare the necessary accounts and returns* Much more important
than simplifying tho.se provisions is simplification affecting the
multitudes of small taxpayers who should have a tax system which
does not require them to employ professional tax experts. How
ever 5 even for them simplicity may not be an unmixed blessing.,
It is often attainable only at the sacrifice of equity and
perhaps of desirable economic objectives.
The complexities of
the individual income tax are due in very large measure to the
demands of taxpayers for an income tax which will be as fair
as it is possible to make it.
Another factor not to.be overlooked is that the postwar
tax structure will be limited in part by the machinery and pro
cedure through which changes in tax laws must be made. An idea
that has been proposed frequently of late is that tax rates and
exemptions should be rapidly moved up and down as economic con
ditions change in order to offset such changes. This proposal
has been given the name "flexible" taxation. It is an attractive
idea and some day it may be a reality. , But traditional procedures
for changing tax rates and exemptions do not lend themselves to
the kind of speed required for flexible taxation and even if
they did the public would undoubtedly be bewildered and resentful
at being forced to adjust themselves to frequent changes. At
best there is often a, considerable lag in public understanding.
I suspect that people would rather not have their attention
called to taxes by frequent changes* especially those that are in
an upward direction.
Occasionally people, who ought to know better talk as if
they expect a brand new an$ entirely different tax system to
result from postwar tax revision. Such expectations are not
justified.
ïhe pessimistic statement from the Bible that
"There is no new thing uncier the sun" is almost true of tax
ation.
There have been constructive developments and there
will no doubt be new ones hereafter* but there is nothing known
now to justify the idea of a radical change in the forms of
taxes.
The present Federal taxers tern has been developed over
a quarter of a century or more and is the result of a great
deal of thought and effort on the part of many people.
The
best taxes known in the ï/orld today.are by and large being used
by the Federal Government. They contain many curious anomalies
but with minor exceptions these are not there either by accident
or because of Ignorance* but have been put there by political
pressure brought to bear by interested taxpayers. That kind of
an anomaly' is very hard to get out of the tax system.
One of the revolutionary innovations of the ..wartime period
is our system of current individual income tax payment* includ
ing the withholding by employers of tax on salaries and wages*
and the estimating and current quarterly payment of tax on income
not subject to withholding.. .-.The first official recommendation
for withholding was probably, that of the Secretary of thé
- 5Treasury3 Mr, Morgenthau, .in. November 194-1» Withholding
entered-the tax system in a small way with the Victory tax in
January 1943 and was put on substantially the present basis in
July ,1943 by the Current Tax Payment Act, This act. also pro
vided for the system of estimates, as well as a method of
transition from the old to the .new collection method.
These new methods of income tax payment are not perfect.
The withholding system tends to keep a person from having a
clear knowledge of his income on the one hand and of his income
taxes on the other. The system of current estimate has proved
Worrisome to some people,, which is probably due to an imperfect
knowledge of the alternative methods of estimating which are
allowed.' But.there are. great advantages. The current payment
system is more:convenient, makes payment easier, and results
in more complete collection. • There are occasional complaints
but it is my impression that employers, employees, and professional
people alike, are in general well pleased with the.sys tern and
would not wish to see it repealed. It is important to live up
to the spirit of.the Current payment system as well as to its
letter by keeping genuinely current throughout the year and not
merely catching up by the end of the year# The people who are
most pleased with the .system seem to be those who deliberately
overpay their.tax so that they are certain to be out of debt to
the Government for tax liability.
•: Although it would be foolhardy to forecast probably postwar
tax revisions, it may be helpful to examine briefly some of the
questions or issues, that are likely to come^p for consideration.
I hope you will not try to read a Treasury position into my
remarks, especially since many of the matters are still in the
study stage which must precede, or at any rate ought to precede,
the determination of an official position.
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,Corporation Taxes
A problem which has received a great deal of consideration
both inside and outside of the Government concerns the position
of the corporation in the tax structure. It is generally recog
nized that the.present methods of taxing corporate income leave
much to be desired. Where corporate profits are distributed to
stockholders an element of so-called “double taxation“ results
since;the corporate income is:subject to tax once at the corpo
rate,level, and the. remaining income again at the. individual
•■•level. The extent to which this double taxation is real as. well
as apparent depends in large part on the extent to which the
corporation is■able to shift its taxes to other people, for
exemple, workers or customers. If there is complete shifting the
double';taxation disappears and if there is partial shifting the
double taxation is reduced.
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To the extent to which there is.double taxation of corpo
rate profits income .earned through.corporations is taxed at
substantially higher rates than is other income, and the dis
tribution ¡of the tax is not in accordance with a system of
progressive¡rates*
Where corporate profits are not distributed, the income
earned through the corporation is in numerous cases taxed at
highly favorable rates in comparison with business income
earned through proprietorships or partnerships, and in comparison
with other income#
•
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Correcting the situation is not a simple problem,
The
prices of outstanding corporate securities have become adjusted
to the present tax system. A substantial reduction of .the socalled double tax would give undeserved windfalls to the many
owners of these securities who purchased them under the
expectation of taxes no more favorable than those imposed under
existing law*. The future investment in new corporations,
however, will depend on a prospect of income sufficient to pay
both the. corporate tax and the individual tax*
You,are no doubt familiar with most of the proposed-, plans
for revising the corporate tax structure* At one extreme are
proposals to repeal the corporate tax altogether. These pro
posals not only reflect a lack of political reality but -also
leave unsolved the problem of the accumulation of untaxed profits
in the corporation. Proposals for repeal of corporate taxation
are sometimes accompanied by proposals for forcing profits out
of the corporation* .
Another proposal .-would.tax corporations .like partnerships,
: that is, thevcorporation would pay no tax as such but stock
holders would be taxed, oh'their distributive share of the
undistributed profits of the corporation.
This also seems an
unrealistic proposal, especially if applied to larger corporations
with many stockholders. For one thing, the tracing of the
eventual owners of the undistributed profits would be an extremely
complicated matter with respect to many corporations. . Moreover,
many stockholders would be placed in the embarrassing position of
having taxes to pay without any satisfactory method of getting,
funds with which to pay them* :
A third proposal is to permit corporations to deduct in
whole or in part the dividends they pay on preferred stock and
common .’stock in the same manner as bond- interest, is now deduct
ible. This has been objected.to in some quarters because of
its resemblance to the undistributed profits tax.
Another'..proposed method is the partial exemption of dividends
received by stockholders so as to allow for the tax paid by the
corporation.
This has a number of disadvantages, among them the
fact that where the corporation succeeded in shifting its tax the
•stockholder would be receiving a special tax reduction not avail
able to anyone else*
,> 7 -
Still another proposal is to treat the corporation tax
as a withholding tax and to treat dividend income for tax pur
poses in a manner similar to salaries and wages. That is, the
tax ■would be.computed to the stockholder on the basis of gross
dividends before the.withholding of tax and the stockholder
would be givfen a tax credit for the tax withheld and paid on
his behalf by the corporation. This method is followed in
Great Britain*
There are* of. course, many people who would prefer to
make no change in the structure whatever, allowing the double
taxation to continue but reducing its scope by reducing the
corporate tax rate. These and other methods of taxing corporations
have been proposed and are under considerations.
There seems to
be wide disagreement even* and perhaps I .should say particularly,
among businessmen as to which method would in the long run' have
relatively the. most desirable'effect on ,the; economy.'
Averaging of Income ‘
■
One. reason for concern-about corporation taxation is the
belief that business expansion and the willingness to take ■
risks are reduced thereby* This' reason, as well as- others,
also underlies proposals for the more effective averaging of
income over a period of years.
The income accounting period
under our income tax system is, of course, a 12-month calendar
or fiscal year* The accounting year is. defective in that there
are many items of income and expense which cannot readily be
attributable•to any specific one-year period. Perhaps more
important'is the fact that with the one-year accounting period
fluctuating incomes commonly pay more taxes than if the same
total amount of income., .is. received in a steady stream* Con
ceivably, the taxes on widely fluctuating, income may be more
than the total income over a period
years*
Our tax system, has already taken into account these defects
by introducing elements of averaging. Business income and*
losses are averaged to the extent that losses may be carried
back for,two years and carried'forward for two years.
There
are also minor specific provisions, notably the option to law
yers a n d ,some, other groups to average income ?iiere income earned
over a period.of 36 months or longer is received in concentrated
form.
: 7
.
\’ .
.Further extension of the averaging principle may be con
sidered in postwar- tax revision.
Thus .longer carryovers of
business losses have been proposed, although in part the
lengthening of the period would be. for the purpose of replacing
the two-year carryback which has proved defective in a number of
respects* A carryover of losses is, .of course, not the equivalent
of complete averaging for' businesses,** Both, individuals and
corporations are^subject to progressive rates and the effect of
averaging is to prevent the bunching of income received in
specific years and taxed, in the absence of averaging, at higher
bracket rates. Incomes from nonbusiness sources receive no tax
relief from these carryovers*
A recent proposal is to allow a carryback and a carryforward
of unused exemptions somewhat analogous to the carryback and
carryforward ¡of business losses* Thus, if a family in one year'
has income less thah. the personal and dependent exemptions,
while' in the next year it has income in excess of such exemptions
and accordingly subject to tax* the unused exemption of the
earlier year could be carried forward and offset against the
taxable income of the later year*
The carryback and carryoverof unused exemptions.would* of course, benefit only those
individuals whose incomes.in some years fall below the exemption
level, but there are milliohs of such families.
There are many individuals who do not have business losses
and whose incomes do not fall below the exemption level 7/ho
nevertheless pay higher taxes because their incomes are bunched
in occasional years instead of being spread relatively evenly
over a period of years. Authors, actors, professional men, and
businessmen alike often wof^ for many years for a moderate
return and finally make a ^killing" in some one or two years*
While on .the average their income remains moderate, for the
particular year it extends to the higher brackets, and they may
derive relatively little from it net of-tax.
Unfortunately, the application of averaging plans thus far
devised wóuld greatly complicate the income tax system* Perhaps
averaging would be worth the additional complication, not only
because it would reduce inequities but also because it would
reduce to some extent, business risks.
Capital Gains and Losses
A particular type of income for which averaging has been'
proposed is capital gains. Capital gains taxed in the year of
realization have often accrued over a long period of years*
Averaging would spread the income and thus in some cases reduce
the tax. Quite aside from averaging, however, a reexamination
of the taxation of capital gains and losses may occur in con
nection with postwar tax revision. Few provisions of the income
tax law have been more frequently changed or given rise'to mòre
dissatisfaction than those relating to capital gains and losses.
The story of the.blind men and the elephant is peculiarly appli
cable to capital gains and losses. There are so many different
ways of looking at them which affect the attitudes towards their
taxation. Thus, one person watching the rise and fall in secu
rity values may conclude that, capital gains áre riot Income at
all but accretions to capital and that as such they should'not
be taxed. Another person, observing the fur coats, jewelry,
entertainment, trips to Florida, and other expenditures being
financed from .capital .gains will be convinced that:'Capital'•
gains are certainly :in come, at -leas t in the ’minds of the people '
who receive them* e.A. person -whose job is to' maintain investment '
- 9 -
portfolios in the best possible condition and who must con
stantly buy and sell-securities with' this in mind will see in
the tax on capital gains an obstacle to sound investment policy.
A person who is sensitive to inequities may see in the failure
ever to tax as income the capital gains which accrue on securi
ties held until death, a major violation in the ability-to-pay
prihciple.. A person close to the security markets may conclude
that the capital "gains tax discourages the sale of securities
and that it therefore accentuates and prolongs speculative booms.
Another:person, looking at'the same situation, may conclude that
the differentially low rate of capital gains taxation induces
people to buy securities as the easiest way to make net income
after taxes and thus causes or stimulates the boom. Still another
person may think what happens to the stock market to be of little
consequence to the country as a whole and accordingly would not
let the effects of the capital gains tax on the market weigh much
in his judgment. One person may deplore the inducement that the
differentially low capital gains tax rate presents to higfr-income
executives, causing than to resign their positions and seek their
fortunes by building up businesses of their own, which they may
keep until death or sell subject ’to the capital gains -tax rates.
Another person may think this result is desirable in stimulating
the growth of new businesses. Still other persons may be dis
tressed by the efforts — many of them successful — which are
being made to transform ordinary income into capital gains and
thus escape■the higher rates.
Certainly none of the many proposals for changing the capi
tal gains tax system.would satisfy all of these people. It has •
been proposed to subject capital gains to full taxation,«allow
ing" full deduction for losses, with averaging over a period of •
years. It has be¿ri proposed to accrue the increases in value
and the decreases in value and tax them prior to realization. It
has been"proposed to separate realized capital gains and losses
completely from o the r •in come and to subject them to a separate
rate schedule.- It has been proposed to continue the present tax
ing method, on' the one- hand, with a -longer holding period and
higher rates, and .on the other hand, with a-shorter holding period
and ‘lower rates. Finally, it has been proposed to completely
exempt capital gains from taxation.
The capital gains tax field thus does not appear to be a good
place to take a dogmatic position. Perhaps it would be feasible
to apprpach the problem through new methods of classifying capital
gains, recognizing differences in assets, in the causes of the
gains, and in their significance ‘for the :economy, i hasten to say
I have no practical suggestions along', this line but the difficulties
of the past suggest the desirability of some kind of new- approach
for the future.
'
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Income Tax liâtes and Exemptions
Still another solution for the capital gains, tax problem
which is sometimes proposed is that the differén’
tial .between the
rate imposed on capital gains and that imposed on other income
be eliminated or reduced by lowering the taxes on other income*
This problem of rate reduction is, of course, a general problem
and not one limited to the solution of the capital gains tax
problem. Undoubtedly in any postwar tax revision there will be
demands for individual income tax reduction at many different
points. Some will stress reductions for the bottom:incomes,
others for.the middle incomes, still others for the highest
incomes; some for earned incomes and others- for investment
incomes# We may be sure that everyone will have a very strong
argument demonstrating the economic desirability of his proposal.
Thus, there will be demands to raise the personal and depend
ent exemptions on the ground that present exemptions are below the
minimum living standard, especially for single individuals and
small families.
There will bo demands to raise the exemptions
and*lower the tax rates for the bottom brackets in order to pre
vent undue restriction of consumer purchasing power. There will be
demands to decrease the rates on the lower middle class on the
ground that this' class is the backbone of democracy and that our
society is headed for trouble if the middle class is discouraged
or destroyed. There will be demands to decrease the rates of
taxation on executives in order to restore their incentives to
take risks and expand their businesses and undertake more diffi
cult jobs, 'To this end, there will undoubtedly be demands for a
substantial earned income credit to reduce the tax on compensa
tion and other earned income below the tax on investment income, .
However, there will also be demands to decrease the tax rates on
income from investments in order to encourage people to take
risks and put their mpnoy In new investments. Undoubtedly I have
missed some of thé imper tant demands, In o ther wor ds,: overy .
group can and does make the argument that lower taxes oh its
particular segment of Income are important for the sound economic
growth of the Nation, These conflicting views present a dilemna, '
It is a dilemna which cannot be solved by lowering 'everyone’s
•taxes; obviously the money must 'come from somewhere, •
'
. Family Incomes
" A somewhat less importent income tax problem is also likely
to arise, namely, thé problem of taxing the income of families,,
Like many other tax problems, this one- is becoming moie acute
with thé passage of time 'and Is accentuated by high tax rates.
The married couples in community property States have long enjoyed
an advantage in Federal taxation which persons in the common-law
States have contended is far out of proportion to any difference
-
11
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in.;the actual status of members of the family* • On the other
hand* in common-law States the practice has been common to
reduce income taxes by making gifts of property from one spouse
to the other. More recently many family partnerships have been
set up* often in an .effort to split the income. Perhaps the
Supreme Court’s recent decisions will discourage this practice,
but it is not clear just where the line can or- should be drawn.
Some years ago, the Treasury Department proposed compulsory
joint returns as a solution for the problems of taxing family
income. Compulsory joint returns would treat all families alike
regardless of whether the income originated in the property and
efforts of the husband, the wife, or both of them. However, if
compulsory joint returns were in force, two single persons who
married might after marriage have to pay higher total taxes than
they did before on the same total income. This prospect gave
rise to great opposition on the ground that compulsory jointreturns discriminated against marriage and the family* Needless
to say, the proposal for compulsory joint returns was defeated.
Another approach is possible to the family-income problem,
namely, to allow universal division of income between husband
and wife in all States. This would have results similar in some
respects to those of compulsory joint returns and opposite in
other- respects. All families would be' treated alike but most
married couples would pay lower taxes than today at any given
rate schedule while single persons would not. Rate increases
to make up the loss of.revenue vrould increase the. taxes on, single
persons above those due under the present system.
Perhaps the family-income question will limp along as it has
in the past, but it would seem:that with the higher rates, acces
sions to the group of community-property States, and the pos
sible spread of family partnerships and other.methods of tax
avoidance, the problem is one. which should be faced, in' the near
future.
Estate and Gift Taxes .
There appears, to be.no ■.great, amount of general public
agitation for revision of the estate and gift taxes.. Perhaps,
this is due to the fact that the estate tax is levied only at
death and falls -on only about.one percent of adult deaths,
while the. gift; tax similarly reaches perhaps an even smaller
proportion of-individuals. :The combined revenue yield of the
estate and gift taxes is less than the liquor tax or the
tobacco tax. In thefiscal year 19U5* estate and gift taxes
produced about one and one-half percent of the total Federal
revenue.
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12
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Tho question arises, as to whether, these taxes should be made
a more .important revenue source by lowering exemptions; and apply
ing higher rates. Proposals along these lines would-certainly
meet with objections in some quarters where it,is felt that the
rates are already too high and should be reduced. It* is probable
.that the levels of estate and gift taxes are more.closely related
to general social policy than to tax policy.
Aside from the question of rates and exemptions there are
important questions concerning the kinds of transfers subject
to the estate tax. ïhe use of life estates and trusts and
other devices creates substantial gaps in the estate ;tax'base
in that the benefits of the property may be enjoyed by more than
two generations with only one tax. The present relation of gift
taxes to estate taxes..makes it possible for those persons who
are able to- divide the distribution of their property between
gifts and their estates to greatly reduce the total tax. An. in
tegration of the gift and estate taxes into a single tax has »
frequently been suggested as a means of remedying this situation.
In a number of situations the estate tax, the gift tax, and
the income tax do not fit together smoothly. For example, income
from property recognized as transferred for purposes of gift tax
may still be attributed to the donor for purposes of the income
tax. Finally, the present relation, of the State death taxes to
Federal death taxes is not very logical since:the 00-percent
credit of State taxes against the Federal tax is based on the
rates and exemptions of the kovenue Act of 1926 which boar
relatively little relation to present exemptions and rates,
particularly rates in the 'higher brackets.
Excise-Taxes
The excise, tax yield in the fiscal year 19.4-5 was. about
$6 billion, slightly over half of which came from the taxes on
liquor and tobacco. Many of the excuse taxes which were im
posed or increased during the.war may be. considered unsuitable
for a peacetime period. Accordingly, the excuse taxes Will
undoubtedly be; reconsidered in the postwar tax revision..' In the
case-;of .the. liquor tax,, one of the factors determining the tax
rate will be- -the effect of the rate on the ability of the
enforcement authorities to prevent the illicit manufacture and
distribution of liquor. Some, of the excuse taxes such as that
applying to transportation of property :are .largely business
costs and thus.enter into the general price level. Still other
excises apply to certain durable goods, such as electrical
appliances and business machines, and were imposed partially to
discoùrage consumption during the war.
THIS
release has been mimeographed,
;
^ J
KLEASE FORWARD 8 COPIES TO ROOM U03, WILKINS BLDG.
figures
on during
In Pounds
ns of April 6 f 19^6
Signatory Countries:
7U8.828.796
365 ,1 9 8 ,0 6 3
13.826.U 33
183
lU ,976.767
Brazil
Colombia
Costa Hica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
9.038.U57
16.732,992
U 6.291.513
lU ,579,688
U ,909,512
Peru
28,310,877
7,880,827
2 ,285,700
Venezuela
23 .796.99i
Non-Signatory Countries:
21.653.101
TOTAL
1 *3 1 « ,309,900
v
I / - J 0 V
FOE IMMEDIATE RELEASE
April 16»
The Bureai of Customs announced today prel iminary figures
showing the quantities of coffee entered for consumption during
the period commencing October 1, 19^5* as follows?
Quantity in Pounds
As of April 6, 19^6
Country of Production
Signatory Countries:
7^8,828,796
Brazil
Colombia
Costa Eica
Cuba
Dominican Eepublic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
365 ,198,063
13 ,826,^33
183
ii*.976.767
9,038,1*57
16,732,992
1*6 ,291,513
H+.579.68S
1*.909.512
28,310,877
7,880,827
2,285,700
23 .796,991
21.653.101
Non-Signatory Countries:
TOTAL
1 ,318.309,900
TREASURY DEPARTMENT
Washington
FOR- RELEASE, M O R N I N G NEWSPAPERS,,
Tuesday, A p ril 16, 194 6 ________ _
Press Service
No. V - 301
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that
the tenders for & 1 , 300,000,000, o r thereabouts, of 9 1 - d a y
T r e a s u r y b i l l s to be d a t e d ' A p r i l 18 and to m a t u r e J uly IS, 1946,
w h i c h were o f f e r e d on April 12, 1946, were o p ened at the
Federal R e s e r v e . B a n k s on April 15.
T h e d e tails
o f this
Total a p p l i e d for Total a c c e p t e d
-
A v erage price
Range of a c c e p t e d
High -
issue are as follows:
vl,9 8 9 * 7 2 4 , 0 0 0
1,310/259,000
(includes .*47,202,000
en t e r e d on a fixed-price
basis' at 9 9 . 9 0 5 and ac
c e n t e d in full)
99.905/ E q u i v a l e n t rate of discount
a p p r o x . 0 . 3 7 5 % per a n n u m
c o m p etitive bids:
99,907 E q u i v a l e n t
rate of d i s c o u n t a p p r o x 0.368%
per annum
"
"
«
»
0.376%
Low
9 9 .905
w
" "
"
"
per annum
(61 percent of the amount bid for at the low price was
accepted.)
Federal Reserve
D i s t r i c t _____
Total
A p p l i e d For
Total
Accented
Boston
New Aor k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
S a n F r a ncisco
I
.1,923,000
)7,560,020
.7,205,000
.3,240,000
.6,150,000
3.216.000
a , 816,000
.0,779,000
TOTAL
17,890,000
1,476,49; 000
21,495, 000
13,240, 000
17,710, 900
3,216, 000
291,445, 000
15,654, 000
15,070, 000
37,505, 000
6,410, 000
73,596, 000
-.1,989,724,000
oV
.0 ,868,000
50,953, 000
6.020.000
>0,539,000
|l,310,259,000
tsrastjsx
Washington
m
w su u m ,
w m m wmmmmt
*•*▼*«•
Tbs Secretary of the Treasury announced last evening that the tenders for
$1,300,000,000, or thereabouts, of 91-day Treasury bills to be dated April 18 and to
mature July 18, 19h6, vhieh «ere offered on April 12, 1^6, »ere opened at the Federal
Reserve Basies on April 1$«
The details of this issue are as follows*
Total applied for — $1,969,72^,000
Total accepted
- 1,310,259,000
Average price
(includes $1*7,202,000 entered on a fixedprice basis at 99*905 and accepted in full)
~ 99.905/ Rquivalent rate of discount approx. 0.375* per annus
Bangs of accepted competitive bids*
31p*»
«» 99*907 Snuivalent rate of discount approx. 0.368* per anraaa
Urn
- 99.905
*
s e e
•
0.376* *
*
(61 percent of the amount bid for at the Icwr price «as accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
Rev York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francises
#
|
TOTAL
17*390,000
1,1*76,1*93,000
21,1*95,000
13,21*0,000
17,710,000
3,216,000
291,1*1*5,000
15,651»,ooo
15,070,000
37,5o5,ooo
6,1*10,000
73,596,000
11,989,721*,000
11,923,000
957,560,000
17,205,000
13,21*0,000
16,150,000
3,216,000
181,816,000
10,779,000
10,858,000
30,953,000
6,020,000
50,539,000
11,310,259,ooo
TREASURY DEPARTMENT
Washington
FOR IMM E D I A T E RELEASE,
Monday, A p ril 15, 1 9 4 6 #
Press Service
No# V-300
D u r i n g the m o n t h of March,
no m a r k e t t r a n s a c t i o n s
s e c u rities
there wer e
in d i r e c t and g u a r a n t e e d
of the G o v e r n m e n t
m e n t and o t h e r accounts,
today
1946,
f o r T r e a s u r y invest*
Secretary Vinson announced
i
-oOo
en b during th® sonth of
#d seauritleis
of th«
*nd other accounts*
Srsa»*»61*
Sreenberg
§ton*r of Accounts
MR. HEFFELFINGER
April 5* 19A&
TO HR* BARTELT*
There were no market transactions during the month of
March, 1916, in direct and guaranteed securities of the
Government for Treasury investment end other account«.
(3*1} Joses* »'*w 6 o r '
Joseph Greenberg
Assistant Commissioner of Accounts
CC to2 Mr. Heffelfinger
Mr. Shaeffer
Miss Sanford
HHaud
TREASURY DEPARTMENT
U1 bcj
Washington
P r e s s Service
No. V - 2 9 9
P O E RELEASE, M O R NING HEtfSPAPER,
Saturday, A p r i l 13, 1946.
S e c r e t a r y of the T r e a s u r y Y i n s o n
no
exchange of f e r i n g w i l l be made
Treasury Certificates
w i l l mature M a y 1,
These
to the ho'JLders of the
of I n d e b t e d n e s s
1946,
today a n n o u n c e d that
of S e ries D-1946,
which
in the a m o u n t of $1,579* 292,000.
c e r t i f i c a t e s w i l l be r e d e e m e d
in c a s h w h e n t h e y mature*
0Q 0
(
1' V• : Q•” , ;.\
ÎSg àSlM mPARTiBWÎ
Washington
s^ssàsn ¡ssii Mi m*«
Secretary of
Presa Service
—
FOR RKIKASE, MORTO» ISRSnUCRS,
îreaeuïy fintoli today anaouneed that no exchange
offering will ho «ri* to the holders of the treasury Certificates of
Indebtedness of Series B-19l*ó, which «111 nature lay 1* 1$& in Hie
amount of $1 , 579*292, 000* These certificates will be redeemed in «all
when they nature«
- 13 -
In addition to issues concerning the relative amount of
revenue to be derived from the excise taxes, the choice of
excises to be retained, and the rates to be applied, there trill
be less important issues in some cases, such as whether the tax
should be at the manufacturer’s level or the retail level*
Payroll Taxes
The payroll taxes for the financing of social security are
an important element of the tax system which I shall not discuss
at this time* They are in a somewhat special class and are
affected by considerations which do not arise in the case of most
other.taxes* It should be pointed out, however, that the social
security payroll taxes are taxes in every sense of the word,
including their impact on the economy and their implications for
the equity of the tax structure* Their, relation to each other
and to the general revenue structure should not be overlooked*
Conclusion
Any or all of the tax issues which I have discussed may
arise in the consideration of postwar tax revision. It may be
expected that most of them will come up for consideration.
However, these are not all of the problems and not even all of the
major problems which are likely to arise* Thus, for .example,
the question of taxing business operations carried on by taxexempt organizations will no doubt be considered* There are
also many minor substantive, technical, and administrative
changes that will be proposed by taxpayers or others for consid
eration* It would be possible to fill several pages listing
such issues but I obviously cannot do so at this time*
It is clear that the problems of taxation are not all
behind us. The tax problems ahead have a serious bearing for the
future of the economy* Tax policy involves more than a political
struggle among economic groups to push the burden of taxes off
onto each other.
The future development of the economy, the
intensity of booms and depressions, the size of business concerns,
and the volume of business and employment may all be importantly
affected, indeed, almost certainly will be importantly affected
by the sort of tax policies tha j are adopted for the postwar
period*' It is, accordingly, of great importance that tax issues
be considered in the light of the best economic knowledge* We
should hope ana strive to raise and keep the level of tax
controversy above narrow self-interest and group interest, and
all work together to promote the national interest*
-
q Oo —
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RE L E A S E
Tuesday, April 16, 1946
Press S e r vice
No •. Vt302
The B u r e a u of C u s toms a n n o u n c e d today p r e l i m i n a r y figures
showing the qua n t i t i e s of coffee e n t ered for c o n s u m p t i o n d u r i n g
the p e r i o d c o m m e n c i n g O c t o b e r 1^,. 1945, as follows:.
Q u a n t i t y in Pounds
As of April 6, 1946
C o u n t r y of P r o d u c t i o n
Signatory Countries:
748,828,796
365,198,063
13,826,433
183
14,976,767
9,038,457
16,732,992
46,291,513
14,579,688
4,909,512
28,310,877
7,8 8 0 , 8 2 7
2,2 8 5 , 7 0 0
2 3 , 7 96,991
Brazil
Co l o m b i a
Costa Rica
Cuba
, »
Dominican Republic
Ecuador
El S a l v a d o r
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
»
Non-Signatory Countriest
21, 6 5 3 , 1 0 1
TOTAL
oOo
1,318,309,900
TREASURY DEPARTMENT
Washington
FOR T M M W T E R5BBB*, '
Friday, April 19, 1946.
Press Service
Ho. ?—
*****
J The Secretary of the Treasury announced today that
proposals are being invited for furnishing distinctive
paper required for printing currency and public debt
securities of the United States for the fiscal year 1947»
for whieh bids will be opened at the Treasury Department
on May 15» 1946.
r-
'—
\ The estimated quantity of paper required for currency
I—
is 92,$00,000 sheets, or about 1117 tons, and for public
debt securities 19»400,000 sheets, or about 344 tone*
^ OO
TREASURY DEPARTMENT
Washington
FOR R E L E A S E M O R N I N G N E W S PAPERS,
Friday, April 19, 1946
_______
Press Service
No. V-303
The S e c r e t a r y of the T r e a s u r y a n n ounced
posals
are b e i n g invited
for f u r n i s h i n g d i s t i n c t i v e p a per
required for p r i n t i n g c u r r e n c y and p u blic debt
the U n i t e d States for the
today that p r o
fiscal y e a r 1947,
s e c u rities
for w h i c h bids
will be o p e n e d at the T r e a s u r y D e p a r t m e n t on M a y 15,
The
9 2 , 5 00,000
of
1946.
e s t i m a t e d q u a n t i t y of p a per r e q uired for c u r r e n c y is
sheets,
curities 1 9 , 4 0 0 , 0 0 0
or about 1117 tons,
sheets,
or about
oOo
and for public debt
364 tons.
se
- 3 -
sold* redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. I4.I8 , 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
-
Immediately after the closing hour, tenders Trill 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 frill be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
Subject to these reservations, tenders for $200,000
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
April 25, 19k6_______ .
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 here
after 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 pur
poses 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
1|2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115 of
the Revenue Act of 19U1, the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday. April 19. 19k6
The Secretary of the Treasury, by this public, notice, invites tenders for
$ 1,300,000,000 , or thereabouts, of
91 -day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series trill be dated
will mature
out interest.
July 2|^ 19U6
, and
April 25, 191x6
, when the face amount will be payable with-
They will be issued in bearer form only, and in denominations
of $1,000, $5,000, $10,000, $100,000, $ 500,000, and $1,000,000 (maturity value),
Tenders will be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time,
Monday, April 22, 19hS
3pf
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.,
Fractions may not be used.
99*925<
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 jguscranty of payment by an incorporated bank or trust company.
TREASURY DEPARTMENT
Washington
F O R 'RELEASE, M O R N I N G ' N E W S P A P E R S ,
Friday, April 19, 1946_____
Press Service
No. V-304
T he S e c r e t a r y of the Treasury, by this public notice,
invites tenders for $ 1 , 3 0 0 ,000,000, or. t h e r e a b o u t s , of 9 1 - d a y
T r e a s u r y bills, to be issued on a d i s c o u n t basis u n d e r c o m p e t i
tive and fixe d - p r i c e b i d d i n g as h e r e i n a f t e r provided.
The
bills of this series will, be d a ted April 25, 1946, and will
mature J u l y 25., 19.6, w h e n the face, amount w i l l be payable
w i t h o u t ' i n t e r e s t . T h e y will be issued in b e a r e r f o r m only, and
in d e n o m i n a t i o n s o f $ 1,000,
$5,000,
$10,000,- $100,000,
f 500,000 and $ 1 , 0 0 0 , 0 0 0 . (maturity value).
T e n d e r s will be r e c eived at Federal R e s erve Banks and
Branches up to the. closing hour, two o ’clock p.m., E a s t e r n
Standard time, Monday, A p r i l . 22, 1946.
Tenders wil l not be
received at the T r e a s u r y Department ,
,i Washington. E a c h t e nder
must be for an even m u l t i p l e -of ^1,000, and the price offered
must be e x p r e s s e d on the b a sis -of 100, w i t h not mor e than
three decimals, e.g*,. 99.925.
Fractions m a y not be used.
It
is u r g e d : that tenders be made on the p r i n t e d 'forms and f o r
warded in the special envelopes w h i c h will be supplied b y
lederai R e s erve Banks or B r a nches on a p p l i c a t i o n therefor.
T e n d e r s will be r e c eived w i t h o u t d e p o s i t from- inco r p o r a t e d
banks ahd trust c o m panies and f rom r e s p onsible and r e c o gnized
dealers in investment securities. -Tenders f r o m others m u s t be
a c c o m p a n i e d b y p a yment of 2 pe r c e n t of the face amount of
T r e a s u r y b i lls a p p lied for, unle s s the tenders are a c c o m p a n i e d
by an express g u a r a n t y of p a y ment b y an i n c o r p o r a t e d b a n k or
trust company.
I m m e d i a t e l y after the closing hour, tenders will be opened
at the federal R e s erve Banks and Branches» f o l l o w i n g w h i c h p u b
lic a n n o u n c e m e n t w ill be made b y the S e c r e t a r y of. the T r e a s u r y
of the amou n t an d price range of acc e p t e d bids.
Those s u b m i t t
ing tenders will be advised of the a c c e p t a n c e or rej e c t i o n
thereof.
The -S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves the
right to a c c e p t or reject any or all t e n d e r s ? in whole or in
part, and his a c t i o n in a ny suc h respect shall be final.
Sub
ject to these reservations, tenders for $ 2 0 0 , 0 0 0 or less f r o m
any one b i d d e r at 99.905 entered on a fixe d - p r i c e basis will
be a c c e p t e d in full.
Payment of a c c e p t e d tenders at the prices
offered mus t be mad e or c o m p l e t e d at the Federal Reserve B a n k
in c a s h or o t h e r i m m e d i a t e l y available funds on April 25, 1946.
2
-
The income d e r i v e d from Treasury, bills', w h e t h e r interest
or g a i n f r o m the sale or o t h e r d i s p o s i t i o n of the bills, shall
not have a n y exemption, as such, and loss f r o m the sale or
o t her d i s p o s i t i o n of T r e a s u r y bills shall not have any special
treatment, as such, u n d e r Federal tax. Acts n o w or h e r e a f t e r en
acted.
The bills shall.be subject to e s t a t e ,• i n h e r i t a n c e >
gift, or other excise taxes, w h e t h e r Federal or-. State, but
shall be exempt f r o m all ta x a t i o n n ow or h e r e a f t e r imposed ohthe p r i n c i p a l or i n t e r e s t - t h e r e o f by any State, or any o f the
p o s s e s s i o n s of the U n i t e d States,1 or b y any local taxing a u t h
ority.
For pu r p o s e s of t a x a t i o n the amount of d i s c o u n t at
w h i c h T r e a s u r y b i l l s are o r i g i n a l l y sold, b y the U n i t e d States
shall be considered- to be interest.
U n d e r Se c t i o n s 42 and
117 (a)(1) of the Internal Revenue Code, a s , a m e n d e d by S e c tion
115 of the R e venue Act of 1941, the amount of d i s c o u n t at
w h i c h b i lls issued h e r e u n d e r are sold shall not be con s i d e r e d
to accrue u n t i l . s u c h b i l l s shall be sold, r e d e e m e d or otherwise
d i s p o s e d o f $ and s u c h b i l l s ,are e x c l u d e d f r o m c o n s i d e r a t i o n as
capital assets.
Accordingly, the o w n e r of T r e a s u r y bills
(other, than life insurance companies) issued h e r e u n d e r n eed
include in his income tax r e turn o n l y t h e 'd i f f e r e n c e b e t w e e n
the p r ice paid f o r •such b i l l s , w h e t h e r on o r i g i n a l issue or on
s u b s equent purchase, a nd the amount a c t u a l l y r e c e i v e d e i t h e r
u p o n sale or r e d e m p t i o n at m a t u r i t y d u r i n g the ta x a b l e y e a r for
w h i c h the r e t u r n is made, as o r d i n a r y g a i n or loss-.
T r e a s u r y D e p a r t m e n t C i r c u l a r No. 418,. as amended, and this
notice, p r e s c r i b e the terms of the T r e a s u r y bills and g o v e r n
the c o n d i t i o n s of t h eir issue.
C o p i e s * o f the c i r c u l a r m a y be
o b t a i n e d f r o m a ny Federal Reserve B a n k or' Branch.
oOo
Secretary Vinson today presented the attached statement
to the Senate Finance Committee in the course of its considera
tion of Senator Byrd's bill to reduce the public debt limit.
Secretary Vinson suggested that the limit on the face amount
of Government obligations be reduced to $285,000,000,000.
Senator Byrd then asked Secretary Vinson if he would be
agreeable to a debt limit figure of $275,000,000,000 under
which obligations redeemable prior to maturity at the option
of the holder would be computed on the basis of their current
redemption value rather than their face amount.
The Secretary
said that so far as he was concerned the two figures would
mean about the same thing and that he would accept Senator
Byrd's suggestion.
G
ig s F
G
id
t j J 4» '
-
d
11
o e>& o<&a & £ 0
present level of^OO/T^Alidren cte^bl^ rs .
I should like to
suggest further that we take this matter up again afi®PWfc-’
of maintaining a strong tax structure in order to pay off
debt as rapidly as possible at the present time.
This has
the added advantage of combating inflationary pressures and
will help us stabilize the economy at the present high level
of production and employment.
o 0 o
April 22, 1914-6.
-
10
-
The reason I have discussed these matters in detail today
is that I want to make a particular point to you; that is, the
G-overnment1s fiscal outlook is good at this time, its debt
is in good shape, and we are managing i t well.
In setting a figure for the debt limitation, an adjust
ment must be made between the present outstanding debt and
the amount of the statutory debt limitation.
The principal
item relates to the unearned discount of approximately^!.^
bjbillon dollars on United States savings
The law
s»sbonds.
»requires
the inclusion of United States isavings
bonds at
x
fr
*5full maturity value for debt limitation purposes; whereas,
the debt its e lf includes these bonds at any given time at
their current redemption value.
On the other hand, there is about one billion dollaTB
of debt items which are not subject to the statutory debt
limitation.
The attached summary and reconciliation maybe
helpful in this connection.
It shows the exact relationship
on March 31 between the gross public debt c
_ __
dollars
an
^
.3- billinn
a - -I - t _____
____ 4-1_____ ____
under
the statutory debt
____J
limitation.
In view of these facts, therefore, I should like to
suggest to your committee that the b ill provide for a
reduction in the debt limit t
M
O C&.Q 60 O * U
b ill lag dollars from the
If
In this
connection,
as I k n o w y o u h a v e b e e n
the F e d e r a l
year
19^6
budgetary
by
our
even our m o s t
the
the
continued improvement
situation.
anticipated.
r e c o n v e r s i o n of
On
—
h a v e p r o v e d to b e
originally
than
I have been very much pleased —
Revenues
optimistic
hopes.
s i d e of
the picture,
expenditures
and more rapidly
originally expected.
of
the G o v e r n m e n t
the
to p e a c e w a s m o r e r a p i d
has b e e n r e d u c i n g its
than
than w e h a d
occurred because
e c o n o m y f r o m war
expenditure
for the fiscal
considerably higher
This has
in
reached a high
the Government
as r a p i d l y as p o s s i b l e ,
The
expenditures
M
6. o c 0 o e o
o f 7^ ?
bt-iltow C e l l a r c
last
JU ¿¡t
June.
By March of
lion dollars,
monthly
year,
As
way toward
we have m a d e
in b o o m
a i m of o u r f i s c a l
for
19^7
s u c h as t h e s e .
fiscal policy has
tax structure
essential
make
to
19^7
days
that average
will
ago,
a balanced budget because
be quite
we are well
of t h e
strides
expenditures,
economic
p o l i c y “ , the P r e s i d e n t
and
to r e t i r e n a t i o n a l
In ou r p r e s e n t
w h i c h is
for the present,
is
the best
stability.^
fight
a v i t a l r o l e to p l a y .
t i n u a t i o n of our pr e s e n t policy,
existing
year
announced ten
the budget
times
inflation,
fiscal
so
toward full peacetime production,
is t h e
“to b a l a n c e
is c o n t i n u i n g ,
t han the M a r c h level.
the President
HIt
0&
t h e y h a d f a l l e n to u n d e r ^ *te5r£^
the decrease
expenditures in the
a bit lower
on the
and
this
fiscal
to
debt
against
A
to m a i n t a i n
and
said,
con
the
avoid non-
c o n t r i b u t i o n w e can
- g -
we find i t convenient and desirable.
Every movement on
this account has its effect on the financial markets,
because the public debt is so intimately woven into the
entire financial structure of our country.
On the occasion
of each maturity of a public debt obligation, I have found
i t necessary, therefore, to go over in detail the informa
tion in the Treasury on a number of factors.
First of a ll,
there are matters with respect to the ownership of the
securities and the effect that repayment of these obliga
tions would have on the money markets.
I also have to go
over the Treasury's current cash position and investigate
the prospective cash outlook before determining how much
of the maturity, if any, should be paid off.
- 7 bpnds which have been on continuous sale for over ten years,
and savings notes which are used primarily as tax anticipa
tion instruments).
The Government has, instead, been paying off maturing
securities with a considerable degree of rapidity.
0 l
On
Ot>OC*G6>
March 1, the Treasury paid off ono Taillien dolim o of maturing certificates.
soo
On March 1 5 , i t paid off
dollars of maturing bonds and notes.
On April 1 , it paid
o f f tw o b i l l i o n ul ol lnp fl o f m a t u r i n g c e r t i f i c a t e s .
We have
already announced that on May 1 , the Treasury will pay off
(9
0
o e Gy a c*o
an additlona^l. £ bil 11 oír"doliars of certificates.
After these transactions have been completed, and after
allowing for such other public debt transactions as have
occurred during this period, the public debt will show an
j,
& & & ,
aggregate reduction ofrl bi 14
J9«r
Ú
6
C f
&
O
O
doll ays in the short period
of two months between February 22 — the date on which the
last of the Victory Loan money was paid into the Treasury —
and May 1.
The size of the Treasury’s cash balance will permit us
to pay off other maturing securities from time to time as
-
6
-
s im ila r ly , about g>0 percent of s e c u r it ie s held by n on fin an cial
corp oration s mature w ithin t h is period of tim e.
On the o th er hand, in the case o f insurance companies and
savings banks, long-term s e c u r it ie s predominate.
About 75 Per~
cent of the holdings of th ese two groups of in v e sto rs do not
mature u n t il a f t e r ten y ea rs.
The amount of the debt held by
the d if fe r e n t c la s s e s of in v esto rs and the composition o f th e ir
holdings w i ll , n a tu ra lly , s h i f t with the passage of time and
the changing ch a ra cte r o f our economy.
This means th at the
debt w ill have to be ta ilo r e d to meet th ese s h if tin g demands.
This i s o a rt o f the p o licy of f le x i b l e debt management.
I have gone in to these m atters in some d e ta il becaxse I
want to make c le a r th a t the Treasury planned i t s post-w ar
management of the debt from the beginning.
Ænr ~nn1itT.
so
i ~ Treasury i
f
■en reducing the debt; and i t has
A
managed i t s debt operations th a t the e n tir e reduction has
been e ffe c te d in bank hold ings.
In f a c t , the re
commercial banks and of the Federal Reserve17Banks in d ica te4 a
A
combined reduction in holdings of Government s e c u r it ie s in exce ss o f the t o t a l debt reduction
The red u ction of the bank-held debt has come about d ir e c tly
as a r e s u lt of the a p p lica tio n to debt repayment o f a p a rt of
the cash balance th a t was l e f t over from the V icto ry Loan.
Since th a t Loan clo sed , the Government has not sold any s e c u ri
t i e s to the p u b lic in order to r a is e new money (except savings
- 5 the public debt that occurred In the last six years repre
sented these types of securities.
Today, those securities
cannot move into hank portfolios.
This was planning on the part of the Treasury, and I
believe it was wise pla n n i n g /
Today, holders of savings
•Sr
bonds who need money can come directly to the Treasury and
•9^
get it through the facilities of the savings bond redemption
agents.
That was planning too; and there is no selling of
securities on the market by small investors.
There is no
repetition of the pressure on bond'prices that occurred after
the first World War.
Prices of Liberty bonds fell to a low
of g2 in the Spring of 1920.
As this occurred, many people
sold their securities in the fear of further losses; while
.
others found it necessary to get their money, regardless of
price.
Now, the small holders of savings bonds are protected
against price risks because the bonds are redeemable according
to the values set forth on their face.
There was also planning by the Treasury with respect to
the particular length of maturity of the issues that were
sold to the various classes of investors.
A conscious effort
was made to fit the debt to the needs of those investor classes.
Accordingly, about 90 percent of the securities held by com
mercial and Federal Reserve Banks mature within ten years;
Debt management is a subject that {many) people are just
beginning to think about, but it is a subject that the Treas
ury has been doing something about since the very beginning
of the war.
You can*t defer the planning of post-war public debt
^
àoo,
ùc
a
management until the debt has grown fronr^S bullion derllai-s
s.
You have to plan that management
as and when the debt is actually incurred. Tfao Treaeury fcttW
jthlo, pn* > 7 * ^ 1
phiriod
*n***-i^iml l^uiuiLm.iifalr"laHTOgfrBM * »he
lu 1 9h y -
At the outset, for example, it was decided that the
various classes of Investors should be sold securities which
fitted their requirements.
This meant that they should have
the particular types of securities that would best suit them
and that they should have the particular length of maturities
« that they needed,
v? J
To give the various classes of investors the various
securities required, a broad list of issues was offered by
the Treasury.
Some of these securities were of the savings
bond type that were not transferrable, and were redeemable
on demand.
Some of these securities were t r a n s f e r a b l e in
the market, but were restricted as to bank ownership for a
period of years.
More than half of the total increase in
3 ~
This does not mean to say th a t I an ag a in st having a
debt l i m i t .
On the co n trary , the Treasury has always
b eliev ed — and I too have b eliev ed both when I*v e been
in and out o f the Treasury — th a t a debt lim it i s a good
thing to have.
I t s e x iste n ce req u ires the o f f i c i a l s of the
Treasury to come to the Congress from tim e to tim e, particu larly,
as in th e p a st, when fundamental changes in the debt stru ctu re
are going on and to s e t fo r th b efo re Congressional committees
the d e t a il o f the p u blic debt, p ic tu r e .
In my opinion, the
review of the s itu a tio n th a t r e s u lts i s b e n e f ic ia l.
The p oint th a t I want to make i s only th a t the lim it in
i t s e l f does not reduce the d ebt,, and th a t the lim it should
not be s e t so low th a t i t w ill remove from the Treasury some
of the f l e x i b i l i t y th a t i t needs in cu rren t p u b lic debt
management o p e ra tio n s.
lim it a l i t t l e
I b e lie v e the p resent b i l l s e ts the
too low; and I s h a ll give you some fig u re s
on th is in a few m inutes.
B efore I do so, however, I should
l i k e to make a few comments on the su b je c t of p u b lic debt
management.
2
must, of necessity, go up.
If, on the other hand, there
are more than enough funds available from taxes and re
ceipts to meet the expenditures authorized by Congress, then
the Treasury is able to take some of this surplus and use it
to pay off some of its securities.
Under these circumstances,
the public debt will go down.
In the final analysis, therefore, it should be clearly
understood that the amount of the public debt is determined
Pill$
by Congress and is the end result at the Treasury of the
appropriation and the revenue legislation.
There may, it is true, be some fluctuation in the volume
A
\ of the public debt in extraordinary periods of short duration
when the size of the Treasury*s cash balance is being increased
or is being decreased significantly.
But, in the final analysis
and for periods of extended duration, the debt will decrease
if revenues exceed expenditures;
and, conversely, the debt
will increase if expenditures exceed revenues.
limit is, therefore, not the controlling factor.
The debt
The exist
ing limitation has not meant that the public debt is a penny
higher today than it otherwise would have been; neither is it
a penny lower.
I am appearing here today to give you my views on
S. 176 0 , a h ill to decrease the debt limit of the United
States f ronr 300s hi l 11 on—do1 la re tq#275 bidiion-dollaro.
I am in complete accord with the purpose of this hill,
and I wish to say' so clearly at the beginning of my state
ment.
Not only do I think that the public debt should be
reduced, but I also think that it should be reduced as
rapidly as possible consistent with the maintenance of
maximum employment and production in the economy; and as
Secretary of the Treasury I am here to t e ll you that it is
the Administration^ objective to do so*
However, I feel I should mention at the outset that
the debt limit should not be viewed apart from all of the
factors that cause the debt to go up on one occasion and go
down on another.
figure.
The amount of the public debt is a residual
Changes in i t come about only after the Treasury
has taken into account all of the Government1s receipts from
taxes and other sources in relation to the volume of expenditures
that have been authorized by Congress.
If there are not enough funds available from receipts,
money must be borrowed by the Treasury to augment its cash
balance so that the expenditure checks can be paid as they
are presented.
Under the circumstances, the public debt
TREASURY DEPARTMENT
Washington
NOTE TO C O R R E S P O N D E N T S :
S e c r e t a r y Vins o n today p r e s e n t e d the a t t a c h e d
to the Senate
finance C o m m i t t e e
eration of S e n a t o r B y r d ’s bill
Sec r e t a r y
statement
in the course of its c o n s i d
to reduce the public debt limit
V i n s o n s u g g e s t e d that the limit on the face amount
of G o v e rnment
o b l i gations be reduced to $ 2 8 5 , 0 0 0 , 0 0 0 , 0 0 0 .
Senator B y r d then a s ked S e c r e t a r y Vins o n if he w o u l d be a g r e e
able to a d e b t limit
o b l i gations
figure
of $ 2 7 5 , 0 0 0 , 0 0 0 , 0 0 0 u n d e r w h i c h
r e d e emable p r i o r to m a t u r i t y at the o p t i o n of the
h o l d e r w o u l d be co m p u t e d on the basis
rede m p t i o n value
rather than their
said that so f a r as he wa s
m e a n about the
of their
face amount*
current
The S e c r etary
concerned the two figures w o u l d
same thing and
that he w o u l d accept S e n a t o r
B y r d ’s suggestion.
Chas. P. S h a e f f e r
D i r e c t o r of Public Relations
April 25,
1946.
TREASURY DEPARTMENT
Washington
Statement b y Fred M. Vinson, S e c r e t a r y of
the Treasury, b e f o r e the Senate C o m m ittee
on Finance
1 0 : 3 0 A.M.,
Tuesday,
April 23,
1946
I a m a p p e a r i n g here t o d a y to give y o u m y views on S. 1760,
a bill to de c r e a s e the debt limit of the U n i t e d States f r o m
$ 3 0 0 , 0 0 0 , 0 0 0 , 0 0 0 to $ 2 7 5 , 0 0 0 , 0 0 0 , 0 0 0 .
I am in complete accord w i t h the purpose of this bill,
and I w i s h to say so c l e a r l y at the b e g i n n i n g of m y s t a t e m e n t .
Not o n l y do I think that the public debt should be reduced,
but I als o t h i n k that it should be reduced as r a p idly as p o s
sible
con s i s t e n t w i t h the m a i n t e n a n c e of m a x i m u m employment
and p r o d u c t i o n in the economy; and as S e c r e t a r y of the T r e a s u r y
I am here to tell y o u that it is the A d m i n i s t r a t i o n ’s objective
to do so.
However, I feel I should m e n t i o n at the outset that the
debt limit should not be viewed apart ,f r o m all of the factors
that cause the debt to go u p on one occasion, and go dow n on
another.
The amou n t of the p u b l i c debt is a residual figure.
Changes in it come about only after the T r e a s u r y has taken
into a c c o u n t all of the G o v e r n m e n t ’s receipts f r o m taxes and
other sources in r e l a t i o n to the volume of expe n d i t u r e s that
have b e e n a u t h o r i z e d b y Congress.
✓
If there are not e n o u g h funds available f rom receipts,
money m ust be b o r r o w e d b y the T r e a s u r y to a u g ment its cash
balance so that the expenditure checks can be p aid as they
are presented.
U n d e r the circumstances, the public debt must,
of necessity, go up.
If, on the other hand, there are more
than e n o u g h funds available f r o m taxes and receipts to meet
the e x p e n d i t u r e s a u t h o r i z e d by Congress, then the T r e a s u r y is
able to take some of this surplus and use it to pa y Off some
of its securities.
U n d e r these circumstances, the p u blic debt
will go down.
In the final analysis, therefore, it should be clearly
u n d e r s t o o d that the amount of the p u blic debt is d e t e r m i n e d by
Congress and is the end result at the T r e a s u r y of the appropri
ation and the revenue legislation.
V- 305
2
There may, it is true, be some f l u c t u a t i o n in the volume
of the public debt in e x t r a o r d i n a r y periods of short d u r a t i o n
whe n the size of the T r e a s u r y ’s c a s h b a l ance is b e i n g increased
or is b e i n g d e c r e a s e d significantly.
But, in the final a n a l y
sis a nd for periods of ex t e n d e d duration, the debt will de c r e a s e
if revenues exceed expenditures; and, conversely, the debt will
increase if e x p e n d i t u r e s exceed revenues.
The debt limit is,
therefore, not the c o n t r o l l i n g factor.
The ex i s t i n g l i m i t a t i o n
has not m e a n t that the public debt is a p e nny h i g h e r today than
it o t h e r w i s e w o u l d have been; n e i t h e r is it a p e n n y lower.
This does not m e a n to say that I a m against h a v i n g a debt
limit.
On the contrary, the T r e a s u r y has always be l i e v e d
and I too have b e l i e v e d b o t h w h e n I ’ve b e e n in and out of the
T r e a s u r y -- that a debt limit is a good thing to have.
Its
existence requires the o f f i cials of the T r e a s u r y to come to
the C o n g r e s s from time to time, particularly, as in the past,
w h e n f u n d a mental changes in the deb t structure are g o ing on,
and to set f o r t h before C o n g r e s s i o n a l committees the detail of
the public debt picture.
In m y opinion, the review of the
sit u a t i o n that results is bene f i c i a l .
The point that I w a n t to make is onl y that the limit in
i t self does not reduce the debt, and that the limit should not
be set so low that it will remove f r o m the T r e a s u r y some of
the f l e x i b i l i t y that it n e eds in current public debt m a n a g e
ment o perations.
I b e l i e v e the present bill sets the limit a
little too low; and I shall give y ou some figures on this in
a few minut e s .
Before I do so, however, I should like to make
a few comments on the subject of public debt m a n a g e m e n t . ^Debt
m a n a g e m e n t is a subject that m a n y people are just b e g i n n i n g to
think about, b ut it is a subject that the T r e a s u r y has b een
d o i n g s o m e t h i n g a b out since the very b e g i n n i n g of the war.
T o u c a n ’t d e f e r the p l a n n i n g of p o s t - w a r public debt
m a n a g e m e n t until the debt has g r o w n f r o m $ 4 8 , 0 0 0 , 0 0 0 , 0 0 0 to
$280,000,000,000.
Y o u have to p lan that m a n a g e m e n t as and
w h e n the deb t is a c t u a l l y incurred.
At the outset, for example, it was d e c i d e d that the v a r i
ous classes of investors should be sold securities w h i c h fitted
their requi r e m e n t s .
Thi s m e ant that they should have the p a r
ticular types of s e c u r i t i e s that w o u l d b est suit t h e m and that
they should have the p a r t i c u l a r l e n g t h of m a t u r i t i e s that they
needed.
3
To give the various classes of investors the various
securities required, a b r o a d list of issues w as o f f e r e d b y the
Treasury.
Some of these securities were of the savings bon d
type that w e r e not transfe.r'“a b l e , and were rede e m a b l e on demand.
Some of these securities were transfe r ’able in the market,
but were r e s t r i c t e d as to b a n k o w n e r s h i p for a p e r i o d of years.
More than h a l f of the total increase in the public debt that
occurred in the last six years r e p r e s e n t e d these types of s e c u
rities.
Today, those securities cannot m o v e into b a n k p o r t
folios .
This was p l a n n i n g on the part of the Treasury, and I
believe it was wise planning.
Today, holders of Savings Bonds
who n e e d m o n e y can come d i r e c t l y to the T r e a s u r y and get it
t h r o u g h the f a c i lities of the Savings Bond r e d e m p t i o n agents.
That was p l a n n i n g too; a nd there is n o - s e l l i n g of securities
on the m a r k e t b y small investors.
There is no r e p e t i t i o n of
the p r e ssure on b o n d prices that o c c u r r e d a f ter the first
W o r l d War..
Prices of L i b e r t y Bonds fell to a low o f 82 in
the S p r i n g of 1920.
As this occurred, m a n y people sold their
securities in the fear of f u r t h e r losses; while o t h e r s found
it n e c e s s a r y to get their money, r egardless of price.
Fow,
the small holders of Savings Bonds are, pr o t e c t e d a g a inst price
risks because the bonds are redeemable a c c o r d i n g to the values
set f o r t h on their face.
There was also p l a n n i n g by the T r e a s u r y w i t h respect to
the p a r t i c u l a r l e n g t h of m a t u r i t y of the issues that were sold
to the various classes of investors.
A conscious effort was
made to fit t he debt to the n e eds of those investor classes.
Accordingly, Sbout 90 percent of the securities h e l d b y c o m
mercial and Federal Reserve Banks m a t u r e w i t h i n ten years;
similarly, about 80 percent of securities held by n o n f i n a n c i a l
corporations m a t u r e w i t h i n this p e r i o d of time.
On the o t h e r hand, in the case of insurance companies and
savings banks, l o n g - t e r m securities p r e d o minate.
About 75
percent of the ho l d i n g s of these two g r oups of investors do not
mature until a f t e r ten years.
The amount of the debt hel d by
the d i f f e r e n t classes ©f investors and the c o m p o s i t i o n o f their
holdings will, naturally, shift w i t h the' passage of time and
the c h a nging c h a r a c t e r of our economy.
This m e a n s that the debt
will have to be tailored to meet these s h i fting demands.
This
is part of the policy of flexible debt mana g e m e n t .
4
I have gone into these m a t t e r s in some deta i l b e c a u s e I
want to make clear that the T r e a s u r y p l a n n e d its p o s t - w a r
m a n a g e m e n t of the d e b t f r o m the beginning.
The T r e a s u r y is
now reducing the debt; and it has so m a n a g e d its deb t o p e r
ations that the entire r e d u c t i o n has b e e n ef f e c t e d in b a n k
holdings.
In fact, the reports of l e a d i n g commercial banks
and of the Federal Reserve Banks fol l o w i n g our April 1 debt
p a y o f f ind i c a t e d a co m b i n e d r e d u c t i o n in h o l dings of G o v e r n
m ent s ecurities in excess of the total debt r e d u c t i o n since
the end of last year.
The red u c t i o n of the b a n k - h e l d debt has come about d i r e c t l y
as. a r e sult o f the a p p l i c a t i o n to d e b t repayment of a part of
the c a s h b a l a n c e that w a s left ove r fro m the V i c t o r y Loan.
Since that L o a n closed, ithe G o v e r n m e n t has not sold any s e c u r i
ties to the p u blic in obder to raise n e w m o n e y (except Savings
Bonds w h i c h have b e e n on c ontinuous sale for o ver ten years,
and Savings N o t e s w h i c h . a r e used p r i m a r i l y as tax a n t i c i p a t i o n
instruments).
The G o v e r n m e n t has., instead, b e e n p a ying off m a t u r i n g
securities w i t h a c o n s i d e r a b l e degree of rapidity.
On M a r c h 1,
the T r e a s u r y paid off $ 1 , 0 0 0 , 0 0 0 , 0 0 0 of m a t u r i n g certificates.
On M a r c h 15, it pai d off | 1 , 8 0 0 , 0 0 0 , 0 0 0
of m a t u r i n g
bonds and notes.
On A p ril 1, it p aid off
2 , 0 0 0 , 0 0 0 , 0 0 0 of
matur i n g certi f i c a t e s .
W e have a l r e a d y a n n o u n c e d that on
M ay 1, the T r e a s u r y w i l l p a y o ff an a d d i tional $>1,600,000,000
of certificates.
A f t e r these t r a n s a c t i o n s have b e e n completed, and a f t e r
a l l owing for such other p u b l i c debt t r a n s a c t i o n s as have o c
curred during this period, the p u blic debt will show an a g g r e
gate r e d u c t i o n of $.7,000,0 0 G , 000 in the short p e r i o d o f two
months b e t w e e n F e b r u a r y 28 —
the date on w h i c h the last of
the V i c t o r y L o a n m o n e y was paid into the T r e a s u r y -and M a y 1.
T'he size of the T r e a s u r y ’s cas h ba l a n c e w ill permit us
to pay off -other m a t u r i n g securities from time to time as we
find it convenient and d e s i rable.
E v e r y m o v e m e n t on this a c
count has its effect o n the f i n ancial markets, b e c a u s e the
public d e b t is so i n t i m a t e l y w o v e n into the entire financial
structure of our country.
On the o c c a s i o n of e a c h m a t u r i t y
of a public d ebt obligation, I have found it necessary,
therefore, to go ove r in detail the i n f o r m a t i o n in the T r e a s u r y
on a n u m b e r of factors.
First of all, there are ma t t e r s w i t h
respect to the o w n e r s h i p o f the securities and the effect that
repayment of these o b l i g a t i o n s w o u l d have on the m o n e y markets.
I also h a v e to go o v e r the T r e a s u r y ’s current c a s h p o s i t i o n and
investigate the p r o s p e c t i v e cash o u t l o o k b e f o r e d e t e r m i n i n g how
much o f the mat u r i t y , if any, should be paid off.
5
In this connection, I have b e e n v e r y m u c h pl e a s e d
as I k n o w you have b e e n
-b y the c o n t i n u e d i m p r ovement in
the Federal b u d g e t a r y situation.
Re v e n u e s for the fiscal y e a r
1946 have p r o v e d to be c o n s i d e r a b l y h i g h e r than we had o r i g i n
ally a n t i c ipated.
T h i s has o c c urred b e c a u s e the r e c o n v e r s i o n
of our e c o n o m y from war to p e a c e was m o r e rapid than even our
most o p t i m i s t i c hopes*
On the e x p e n diture side of the picture, the G o v e r n m e n t
has b e e n red u c i n g its e x p e n d i t u r e s as r a p i d l y as possible, and
more r a p i d l y t h a n o r i g i n a l l y expec.ted. The e x p e n d i t u r e s of
the Gove r n m e n t reached a h i g h of $ 9 , 7 0 0 , 0 0 0 , 0 0 0 last June.
By
M a r c h of this year^, they had f a l l e n to u n d e r $.4,000,000,000,
and the d e c r e a s e is continuing, so that average m o n t h l y e x p e n
d i t ures in the fiscal y e a r 1947 will be quite a bit l o w e r - t h a n
the M a r c h level.
As the P r e s i d e n t a n n o u n c e d ten days ago, we are well on
the w a y toward a b a l a n c e d b u d g e t b e c a u s e of the strides we
have m ade toward full peacetime production.
”It is the a i m o f our fiscal p o l i c y ” , the P r e s i d e n t said,
”to b a l a n c e the b u d g e t for 1947 and to retire n a t i o n a l debt
in b o o m times suc h as these.
In our p r esent fight against in
flation, fiscal p o l i c y has a vital role to play.
A continua
tion of our present policy, w h i c h is to m a i n t a i n the ex i s t i n g
tax structure for the present, and to avoid n o n e s s e n t i a l
expenditures, is the b e s t fiscal c o n t r i b u t i o n we can make to
economic s t a b i l i t y . ”
The reason I have d i s c u s s e d these m a t t e r s in detail today
is that I want to make a p a r t i c u l a r point to you; that is, the
G o v e r n m e n t ’s fiscal ou t l o o k is good at this time, its debt is
in good shape, and we are m a n a g i n g it well.
In se t t i n g a figure for the debt limitation, an a d j u stment
mus t be m a d e b e t w e e n the p r e sent o u t s t a n d i n g debt and the amount
of the s t a t u t o r y debt limitation.
The pri n c i p a l item relates
to the u n e a r n e d d i s count of a p p r o x i m a t e l y $ 1 1 , 0 0 0 , 0 0 0 , 0 0 0 on
U n i t e d States Savings Bonds.
The law requires the i n c l u s i o n of
U n i t e d States Savings Bonds at full m a t u r i t y value for debt
l i m i t a t i o n purposes; whereas, the debt i t self includes these
bonds at a n y given time at t h eir current r e d e m p t i o n value.
On the o t her hand, there is about $ 1 , 0 0 0 , 0 0 0 , 0 0 0 of debt
items w h i c h are not subject to the s t a t u t o r y debt limitation.
The a t t a c h e d su m m a r y and r e c o n c i l i a t i o n m a y be helpful in this
connection.
It shows the exact r e l a t i o n s h i p on M a r c h 31 b e
tween the gross public debt of $ 2 7 6 , 6 0 0 , 0 0 0 , 0 0 0 and
$ 2 8 6 , 3 0 0 , 0 0 0 , 0 0 0 u n d e r the sta t u t o r y debt limitation,
-
6
-
In view o f these facts, therefore, I should like to s u g
gest to y o u r c o m m ittee that the bill pr o v i d e for a r e d u c t i o n
in the debt limit to $ 2 8 5 , 0 0 0 , 0 0 0 , 0 0 0 fro m the p r e s e n t level
of $ 3 0 0 , 0 0 0 * 0 0 0 , 0 0 0 .
I should like to suggest f u r t h e r that
we take this m a t t e r up again sometime nex t year.
In closing, I should like to emphasize the importance of
m a i n t a i n i n g a s t r o n g tax structure in o r der to p a y off debt
as r a p i d l y as p o s sible at the present time.
This has the
added a d v a n t a g e of c o m bating i n f l a t i o n a r y p r e s s u r e s and will
help us s t a b ilize the e c o n o m y at the p r e sent h i g h level of
p r o d uction and employment.
oOo
\
\
STATUSES DEBT LIMITATION
AS OF MARCH 31. 19 ¿6
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest'by the United States (except
such guaranteed obligations as may be held by the-Secretary of the Treasury),
“shall not exceed in the aggregate 1300,000,000,000 outstanding at any one time»11
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding March 31, 1946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Bonds
Treasury*... *........*.. ♦$121,177,405,350
Savings (maturity value)* 59,4-63,150,700
Depositary..............
451,317,000
Adjusted Service....... .
500.157*956 $181,592»031,006
£$(X),Ü00# 000,000
Ti'e’
as.yfy no tes............. 37, 545, 296, 200
Certificates of indebtedness 49,114,4-03,000
Treasury bills......... .
17.047.223.000 103*707.002.200
Total interest-bearing,.................. 285,299,033,206
Matured, interest-ceased..... . . . . . . . 2 3 0 , 2 9 9 , 0 5 6
Bearing no interest
•Tar Savings Stamps.....
* ¡ m 112,335,135
Excess profits tax refund bonds 109.154.539 ■
221.409« 674
"fetal .......................
.......77... 205»750,821.936
Guaranteed obligations (not held by Treasury)
Interest-bearing
*
‘rircipki and inter*
Debentures : F.H.A. •.... ..*.,
40,386,936
■ Demand obligations; C.C.C* ... 501,322*322
541,709,250
Matured, interest-ceased............. .
.....11 .366.475
■,face Mot
Grand total outstanding.... *.
balance face amount of obligations issuable under above authority*
206 *311.897.66Q
13.600.102.331
WPv‘ v
fieconcilement with Statement of the Public Debt » March 31, 1946
(Daily Statement of the United States Treasury, April 1, 1946)
Outstanding March 31 , 1946
Total gross public debt........ •*.** ...
......*........ 276, 012,418,847
Guaranteed obligations not1owned by the Treasury. *..... *........
553.075.733
Total gross public debt and guaranteed obligations.
.... .
276, 565,494,580
- unearned discount on IT.S* Savings Bonds
(Difference between maturity value and current redemption value)
h
’W : n r r v nr’teo..- ....
4.
y 1 ' ¿ A ' W ~V,
1 0 , 7 3 0 , 0 7 1 , 8 5 6 'I
Jeauct - other outstanding' public- •i^xtlx^dH.gations
not subject to debt l i m i t a t i o n . .... ♦,
983v668.76jp 2? 9.746,403.089
286,311,897.669
Approximate face o.r maturity value; current redemption value
$48,733,078,843*
rmimm mvmmm
Washington
Press Service
FOR RELEASE, « H I M SSWSPJkPSRS,
Tuesday, April 23* 19^6.
The
Secretary of the Treasury announced la st evening that the tenders for
$1*300,000,000, or thereabout*, of 91-day Treasury h ills to he dated April 2$ and to
nature ¿u3y 25, 19W, which ««re offered on April 19, 19i*6, were opened at the Federal
Reserve Banks on April 22»
The d etails of this issue are a* follows:
Total applied for * $1,902,106,000
Total accepted
- 1,315,262,000
Average price
(includes $1*2,^92,000 entered on a fixed-
price hast* at 99*905 and acoepted in full)
* 99*905/ Equivalent rate of discount approx* 0.3755 per am»«
Range of accepted competitive hide:
- 99.907 Equivalent rate of discount approx. 0*3685 per annum
■
0.3765 ■
*
- 99*905
*
«*
•
*
High
lew
(66 percent of the amount hid for at the leer price was accepted)
Federal Reserve
Total
District
Applied for
fetal
Accepted
Boston
Beer York
1
I
Cleveland
20,295,000
Richmond
11 ,020,000
Atlanta
Chicago
St* Louis
7,620,000
298,588,000
15 ,1*80,000
2 ,730,000
29,015,000
11 ,010,000
57,21*9,000
5,783,000
959,385,000
19,652,000
20,295,000
10 ,000,000
7,620,000
199,61*8,000
11,362,000
2,730,000
25,31*3,000
8 ,630,000
1*5,009.000
11,902,106,000
♦1,315,262,000
3,100.000
1 ,106,213,000
211,786,000
Kansas City
San Francisco
TOUi
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S P A P E R S
Tuesday, April 25, 1946_______
Press S e rvice
No, V-306
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e ning that ,
the tenders for $1, 300,000,000, or thereabouts, of 9 1 - d a y
T r e a s u r y bills to be d a t e d April 25 and to m a ture Jul y 25, 1946,
w h i c h wer e of f e r e d on April 19, 1946, were opened at the Federal
Reserve Banks on April 22.
The d e t ails of this issue are as follows:
Total a p p lied for - $ 1 , 9 0 2 , 1 0 6 , 0 0 0
Total ac c e p t e d
- 1,515,262,000
A v e r a g e price
Range
-
(includes $ 4 2 , 4 9 2 , 0 0 0
e n t ered on a fixe d - p r i c e
basis at 99.905 and a c
cepted in full)
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
of ac c e p t e d c o m p e titive bids:
High -
99.907 E q u i v a l e n t
Low
99.905
-
(66 percent
"
of the a m o u n t bid
Federal Reserve
___ D i s t r i c t
Boston
N ew Y o r k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C i t y
Dallas
San Francisco
TOTAL
rate of d i s c o u n t approx. 0 . 3 6 8 %
p e r annum.
"
«
m
!»
0.376%
pe r annum.
for at the low price was accepted)
Total
A p p l i e d for
•%
$
8 ,100,000
Total
Accepted
$
5,788,000
959.385.000
19.652.000
20.295.000
1,416,213,000
24.786.000
20.295.000
11.020.000
7 , 6 2 0 , Q00
298,588,000
15.480.000
2,7 3 0 , 0 0 0
29.015.000
11.010.000
57,249,000
7.620.000
199.648.000
11.162.000
2.730.000
25.343.000
8.630.000
45.009.000
$1,902,106,000
$1,315,262,000
oOo
1 0 , 000,000
VSHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM U03, WILKINS BLDG.
ary figures
ption during
as
ity in Pounds
ox x»pril 13, 19^6
Signatory Countries;
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
773,131,639
381,7*7.812
15,3*9.681
I85
15,7**,0*6
9,092,857
20,387,918
*8 ,*69,960
1*,756,066
5 ,076,821
38,1*3,872
11,010,38*
2 ,285,700
2*.965.*35
21. 653,186
Non-Signatory Countries:
TOTAL
1 ,381,815,562
yOH IMMEDIATE RELEASE
< U April 23. 1 9 ^
I
The Bureau of Customs announced today preliminary figures
shoving the quantities of coffee entered for consumption during
the period commencing October 1, 19^5» &* follows:
Country of Production
Quantity in Pounds
A« of April 13, 191*6
Signatory Countries:
773.131,639
Brazil
Colombia
Costa Bica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
381,71*7,812
15,3*9.681
185
15,7l*l*,Ol*6
9.092.857
20,387,918
1*8 ,1*69,960
ll*,756,066
5 ,076,8211
38,11*3,872
1 1 , 0 1 0 , 381*
2 , 2 8 5 ,7 0 0
21*.965.1*35
Non-Signatory Countries:
a . 653.186
TOTiL
1,381,815,562
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E L E A S E
Tuesday, A p ril 25, 1946
Press S e rvice
No. V-307
The B u r e a u of* Customs a n n o u n c e d t o d a y p r e l i m i n a r y figures
showing the q u a n t i t i e s of coffee e n t e r e d for c o n s u m p t i o n d u r i n g
the p e r i o d c o m m e n c i n g O c t o b e r 1, 1945, as follows:
C o u n t r y of P r o d u c t i o n
Q u a n t i t y in Pounds
As of A p r i l 13, 1946
S i g n a t o r y Countries:
B r azil
Colombia
Costa Rica
Cuba
D o m i n i c a n Republic
Ecuador
El Salvador
Guatemala
.Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
773,131,639
381,747,812
15,349,681
185
15,744,046
9,092,857
20,387,918
48,469,960
14,756,066
5,076,821
38, 1 4 3 , 8 7 2
11,010,384
2,285,700
24,965,435
N o n - S i g n a t o r y Countries:
21,653,186
TOTAL
/
1,381,815,562
F O R IMMEDIATE
RELEASE
»*7 /
Treasury
T he
eliminate
of
Reserve
t he
Board gave
c o n c e r n e d to
by u n c e r t a i n t y in
rate,
Secretary
to S e c r e t a r y Y i n s o n ,
that
the
rate w i l l n o t
stated
see
that
that
the
to
<#
the
elimination
be a l l o w e d to
the
Treasury has
reconversion
so r a p i d l y ,
should not
be
been
of i n d u s t r y ,
disturbed
the m o n e y m a r k e t s .
S e c r e t a r y Y i n s o n p o i n t e d out
that in
the T r e a s u r y h a s b e e n p a y i n g
particular
the p r o p o s a l
security markets.
which has progressed
months
of
assurance
discount
Secretary Yinson
a n d is
discount
of A p r i l 19,
t he p r e f e r e n t i a l
disturb
fully informed
the p r e f e r e n t i a l
In a letter
Federal
was
emphasis
on
the
o ff
the p a s t
t he
debt,
two
with
debt h e l d by the banks.
By
OOt'OZtQjOQ
May
1 st
t he
of m a t u r i n g
Treasury w ill h a v e p a i d off n e a r l y $7
obligationstfwithout d i s t u r b i n g
*** '
t he m o n e y
markets.
The
the
Treasury will
d e b t as
r a p i d l y as
Secretary Yinson
said.
continue
its
its
orderly repayment
financial position permits,
of
I
TREASURY DEPARTMENT
Washington
Press S e r vice
No.. V-308
FOR I M M E D I A T E . R E L E A S E
Wedn e s d a y , April 24, 1946
The T r e a s u r y w a s
eliminate
fully
informed o f the pr o p o s a l
the p r e f e r e n t i a l d i s c o u n t rate,
to
S e c r e t a r y Vinson
said today,.
In a letter of A p ril 19,
Federal
Reserve B o ard gave
assurance
of the p r e f e r e n t i a l d i s c o u n t
d i s t u r b the
to S e c r e t a r y Vinson,
that the
the
elimination
rate will not be a l l owed to
se c u r i t y ma r k e t s .
S e c r e t a r y Vinson s t ated that
Is c o n c e r n e d to see that
has p r o g r e s s e d
the T r e a s u r y has b een and
the r e c o n v e r s i o n of industry,
so rapidly,
which
should not be d i s t u r b e d b y u n c e r
tain t y in the m o n e y markets.
Secretary
m o nths
ticular
Vinson p o i n t e d out
that
in the past two
the T r e a s u r y has bee n p a y i n g o ff the debt,
emphasis
with par
on the debt held b y the b a n k s A. By M a y 1st
the T r e a s u r y w i l l have paid
off n e a r l y J>7,0 0 0 , 0 0 0 , 0 0 0 of
m a t u r i n g o b l i g a t i o n s w i t h o u t d i s t u r b i n g the m o n e y markets.
The T r e a s u r y w i l l
debt as r a p i d l y as its
Vinson
continue
its o r d e r l y r e p a yment
financial p o s i t i o n permits,
said.
oOo
of the
Secretary
- 3 -
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 fox’ 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. I4.I8, 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.
Immediately after the closing hour, tenders trill be opened at the Federal
Reserve Banks and Branches, following which public announcement till be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
Subject to these reservations, tenders for |200,000
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
May 2, 19U6__________ .
235
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 here
after 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 pur
poses 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
U2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section 115> of
the Revenue Act of 19Ul* the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
TREASURY DEPARTMENT
Washington
3
0
FOR RELEASE, MORNING NEWSPAPERS,
Friday, April 26, 19h6
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1,300,000,000 , or thereabouts, of
91
-day Treasury bills, to be issued
—
—
~ m ~
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series va.ll be dated
May 2, 19U6________ , and
will mature
August 1, 19h6
, when the face amount will be payable with-
out interest.
They vail be issued in bearer form only, and in denominations
of $1,000,, 15,000, $10,000, $100,000, $ 500,000, and $1,000,000 (maturity value).
Tenders vail be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
Monday, April 29, 19U6
Tenders will not be received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, and the price offered must be
expressed on the basis of 100, with not more than three decimals, e. g., 99.925»
Fractions may not be used,.
It is urged that tenders be made on the printed
forms and 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.
TREASURY DEPARTMENT
Washington
FOR RELEASE., M O R N I N G N E W S P A P E R S ,
Friday, April 26, 1946
The S e c r e t a r y of the Treasury, b y this public notice, i n
vites tenders for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, o f 91-d a y
T r e a s u r y bill's, to be issued on a d i s c o u n t basis u n d e r c o m p e t
itive a nd f i x e d - p r i c e b i d d i n g as h e r e i n a f t e r provided.
The
b i l l s of this series will be d a t e d M a y 2, .1946, and will m a t u r e
A u g u s t 1,.1946, w h e n the face amount w i l l ■be p a y a b l e w i t h o u t
interest.
T h e y will be issued in b e a r e r form.only, and in
d e n o m i n a t i o n s of $1,000, $ 5 , Q 0 0 , . $10,000, $100,000, $500,000,.
and $ 1 , 0 0 0 , 0 0 0 (maturity v a l u e )•
T e n d e r s will be received a t ' F e d e r a l .R e s erve Banks and B r a n c h e s u p to the c l o s i n g hour, two o ' c l o c k p,m.., E a s t e r n
St a n d a r d time, Monday, April 29, 1946.
Tenders, will not be
received at the T r e a s u r y D e p a r t m e n t , W a s h i n g t o n .
E a c h tender
mudt be for an even m u l t i p l e of $1,000, and the p r ice offered
mus t be e x p r e s s e d on the basis o f 100, w i t h not mor e than three
decimals, e* g,, 99.925,
F r a c t i o n s m a y n o t be used*
It is
u r g e d that tenders be made on the p r i n t e d forms, anft for w a r d e d
•in the special envelopes w h i c h wil l be s u p p l i e d b y Federal
R e s erve .Banks or B r a n c h e s on a p p l i c a t i o n therefor.
T e n d e r s w i l l be r e c eived w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
b a n k s 'and trust c o m panies and f r o m r e s p o n s i b l e and r e c o g n i z e d
d e a lers in investment securities,. T e n d e r s f r o m others m ust be
a c c o m p a n i e d b y p a y m e n t of 2 p e r c e n t of the face a m ount of
T r e a s u r y bills a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d
by a n e x p ress g u a r a n t y of p a y m e n t b y an i n c o r p o r a t e d b a n k or
trust c o m p a n y *
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders w i l l be o p ened
at the Federal Reserve Banks a nd Branches, f o l l o w i n g w h i c h
public a n n o u n c e m e n t w i l l be m ade by the S e c r e t a r y of the
T r e a s u r y of the a m ount and price range of a c c epted bids.
Those
s u b m i t t i n g tenders w i l l be a d v i s e d o f the a c c e p t a n c e .or r e j e c
tion thereof.
T h e S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves
the r i g h t to accept or reject any or all tenders, in w h ole or
in part, a nd his a c t i o n in any suc h respect shall be final'.
Subject to these reservations, tenders for $ 2 0 0 , 0 0 0 or less
f rom a n y one b i d d e r at 9 9 .905 entered, on a f i x e d - p r i c e basis
will be a c c e p t e d in full.
P a y m e n t of a c c e p t e d tenders at the
prices o f f e r e d mus t be m ade or c o m p l e t e d at the Federal R e s e r v e
B ank in c a s h or other i m m e d i a t e l y a v a i l a b l e funds on M ay 2y 1946,
The income d e r i v e d f r o m T r e a s u r y bills,, w h e t h e r interest
or gai n f r o m the sale or o t her d i s p o s i t i o n of the bills, shall
not have
any exemption,- as such, and loss fro m the sale or
other d i s p o s i t i o n of T r e a s u r y bills shall not have any special
treatment, as such, u n d e r Federal tax Acts now or h e r e a f t e r
enacted'.
The bills shall be subject to estate, inheritance,
V-309
2
gift, of o t h e r excise tai;es, w h e t h e r Federal or .State, but
sha 1 1 ' be exempt f r o m a 11 ,taxation n o w o f h e r e a f t e r imposed on
the p r i n c i p a l or interest t h e r e o f by any State, o r ’any o f the
p o s s e s s i o n s of the U n i t e d States, o r ‘b y any local taxing
a u t h ority.
For p u r p o s e s of t a x a t i o n .the a m ount of di s c o u n t
at w h i c h T r e a s u r y b i l l s are o r i g i n a l l y 'sold b y t h e ^ U n i t e d States
shall b e ' c o n s i d e r e d to b e interest.
U n d e r Se c t i o n s 42 and 117
*(a) (1) of the I n t ernal R e v e n u e Code,.?as a m e n d e d b y S e c t i o n 115
of the Re v e n u e Act of 1941, the a m o u n t of d i s c o u n t at w h i c h
bills issued h e r e u n d e r are sold shall not be c o n s i d e r e d to
accr u e u n t i l such b i l l s shall be sold, r e d e e m e d or otherwise
d i s p o s e d of, ’and s u c h b i l l s are e x c l u d e d f r o m c o n s i d e r a t i o n as
capital assets.
A c c o r d i n g l y , the o w n e r of T r e a s u r y bills (other
than life irisurance companies) issued h e r e u n d e r nee d include
in his income tax r e turn o n l y the d i f f e r e n c e b e t w e e n the price
p a i d for s u c h bills, w h e t h e r on o r i g i n a l issue or on subsequent
p u r c h a s e , * a n d the amount a c t u a l l y r e c e i v e d e i t h e r u p o n sale or
r e d e m p t i o n at m a t u r i t y d u r i n g the taxable y e a r for w h i c h the
r e t u r n is made, as o r d i n a r y g a i n or loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No, 418, as am e n d e d , and this
notice, p r e s c r i b e the terms of the T r e a s u r y bills and g o v e r n the
cond i t i o n s of their issue.
C o p i e s of the ci r c u l a r m a y be o b
t a i n e d f r o m any Federal R e s e r v e B a n k or Branch,
oOo
Tsmsmt mpmrmwt
ftahingtei
,m m x m
rm m
mehspapsrs,
Press Service
Tftetriay» t o r l i 30« IS tf« _________
i/
3>°
The Secretar^ of thè Treaeury announced last evening that thè tenderà for
$1,300,000,000, or thereabouts, of 91-day Treasury bilie te be dated May 2 «ai te »etere
Àugust 1, 19i*6, ehich »ere offered on Aprii 26, 19ib6, »ere opened et thè Federai Reserve
Banks on Aprii 29*
The details of this issue are as follo*«:
Total applied for * $1,850,058,000
Total accepted
-
l,309,2l>6,000
(include* $1*3,723,000 entered on a fixed-
Average prie©
price basi« at 99*905 and accepted in full)
- 99.905/ Equivalesti rate ©f discount approx. 0.3755 per annua
Range of accepted competitive bidet
* 99*90?
- 99.905
aigb
Lo»
Equivalent rate of discount approx.
*
«
*
«
»
0.3685 per
0.3765 *
anno»
•
(69 percent of thè amount bid for at thè lo» price »as accepted)
Federai Reserve
Districi
Total
Applied for
Total
Accepted
Boston
le» York
Philadelphia
Cleveland
*
7,650,000
1,1*12,780,000
23,375,000
6,307,000
8,800,000
9,970,000
286,860,000
17,651,000
lt,31*0,000
22,575,000
5,51(0,000
1*3,230,000
1
$1,850,058,000
$1,309,21*6,000
Atlanta
Chicago
8t. Louis
Minneapolis
Kansas City
Onllttt
San Francisco
TOTAL
5,830,000
586,711,000
17,1*85,000
6,307,000
8,180,000
5,570,000
200,256,000
13,258,000
1*.282,000
17,587,000
5,630,000
33,310,000
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G NEWSPAPERS,
Tuesday, A p ril 50, 1946______ ___
Press Service
No. V-310
The S e c r e t a r y of the T r e a s u r y a n n o u n c e d last e v e n i n g that
the tenders for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 ,
bills
or thereabouts,
to be d a t e d M a y 2 and to m a t u r e A u g u s t 1,
offered on April
26,
of 9 1 - d a y T r e a s u r y
1946, w h i c h were
1946, w e r e o p e n e d at the Federal R e s e r v e
Banks on A p ril 29,
T he de t a i l s
of this
issue are as follows:
T o t a l a p p lied for - #>1,850,058,000
Total accepted
- ' 1 , 3 0 9,246,000
(includes # 4 3 , 7 2 3 , 0 0 0
e n t e r e d on a f i x e d - p r i c e b a sis
at 9 9 . 9 0 5 and a c c e p t e d in full)
A v e r a g e price
- 99.905/
E q u i v a l e n t rate of d i s c o u n t
approx, 0.375,$ per a n n u m
Range of a c c e p t e d
High
c ompetitive bids:
- 9 9 .907
E q u i v a l e n t rate of d i s c o u n t
approx. 0 * 3 6 8 $ p e r a n n u m
- 99,905
E q u i v a l e n t rate of di s c o u n t
approx* 0.376$ pe r a n n u m
Low
(69 p e r c e n t of the amount b i d
for at the low price was accepted;)
Federal Reserve
District
Total
A p p l i e d for
Boston
New York
Philadelphia
C l e v eland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San F r a n c i s c o
I
TOTAL
7,690,000
1,412,780,000
23.375.000
6.3 0 7 . 0 0 0
8.800.000
9.970.000
286,860,000
17.691.000
4.840.000
22.575.000
5.940.000
45.250.000
$1,850,058,000
oOo
Total
Accepted
$
5,830,000
986.711.000
17.485.000
6. 3 0 7 . 0 0 0
8.180.000
9.970.000
200.296.000
13.258.000
4.282.000
17.987.000
5.630.000
55.3 1 0 . 0 0 0
$1,309,246,000
/
W 5 M THIS RELEASE HAS BEEN MIMEOGRAPHED,
fo:
m
PLEASE FORWARD 8 COPIES TO HOOM
k03, WILKIES
BLDG.
sh<
tin
As of April 20,
19M6
Signatory Countries:
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
812,21^,803
386.297.1)43
15,882,322
192
15 .7^ , 0)49
9,092,857
20,799,072
148,700,652
15,270,1814
5 ,076,821
39.1)
31),1)90
11 ,825,512
2.383.232
27,196,616
Peru
Venezuela
Non-Signatory Countries:
TOTAL
,21.953.200
1,1)31,871,1)45
FOE IMMEDIATE RELEASE
'
torll 30, 19U6
The Bureau, of Customs announced today preliminary figures
showing the quantities of coffee entered for consumption during
the period commencing October l y 19^5» as follows:
Quantity in Pounds
As of April 20, 19U6
Country .of Production
Signatory Countries:
812,21*1,803
386.297.lU3
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
,
15 882,322
192
15,7UU,0*19
9 ,092,857
20,799.072
U8.700.652
15.270.I8U
5.076,821
39,U3U,U90
11,825,512
2 ,383,232
27,196,616
Non-Signatory Countries:
TOTAL
21.953.200
1,U31,871,1U5
TR E A S U R Y D E P A R T M E N T
Washington
FOR I M M E D I A T E R E L E A S E
Tuesday, A p ril 30, 1946
Press S e r vice
No, V-311
The B u r e a u of Customs a n n o u n c e d today p r e l i m i n a r y figures
showing the q u a n t i t i e s of coffee e n t e r e d for c o n s u m p t i o n d u r i n g
the p e r i o d c o m m e n c i n g O c t o b e r 1, 1945, as follows:
C o u n t r y of P r o d u c t i o n
Q u a n t i t y in Pounds
As of April 20, 1946
S i g n a t o r y Countries:
Brazil
Colombia
C o sta Rica
Cuba
D o m i n i c a n Republic
Ecuador
El S a l v a d o r
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
812,214,806
386,297,143
15,882,322
192
15,744,049
9,092,857
20,799,072
48,700,652
15,270,184
5,076,821
3 9 , 4 34,490
11,825,512
2 , 3 8 3,232
27,196,616
N o n - S i g n a t o r y Countries:
,
TOTAL
oOo
21,955,200
1,431,871,145
S.3
Please send 15 copies of this
release to Mrs, Beardsley
Room U03 Wilkins Building
FOB
— ^ ------ n r
v c t * - ju. jl «&.—
a
a u c
quota of 15,000,000 pounds of fish, fresh or frozen (whether or
not packed in ice), filleted, skinned, honed, sliced, or divided
into portlonarSiot specially provided for: cod, haddock, hake,
pollock, j'cusk>yand rosefish, entitled to entry for consumption at
1-7/8 c e n W f e r pound during the calendar year 1946 has been
increased to 20,380,724 pounds.
The Canadian Trade Agreement of Kovember 25, 1938, prescribes
that if the average apparent annual consumption of such fish in
the United States during the 3 calendar years preceding the year
in which such fish were entered, or withdrawn from warehouse for
consumption, exceeds 100,000,000 pounds, an additional quantity of
such fish equal to the amount by which 15 per centum of such
average apparent annual consumption exceeds the 15,000,000 pounds
may be entered,or withdrawn from warehouse, for consumption in that
year at the 1-7/8 cents per pound rate. It has been determined
that the avera®» annual consumption of such fish for the calendar
years 1S4J, If^l, and 19^5 was 135,871,495 pounds.
343.3
FOB IMMEDIATE RELEASE
The Bureau of Customs announced today that the tariff-rate
quota of 15,000,000 pounds of fish, fresh or frozen (whether or
not packed in ice), filleted, skinned, honed, sliced, or divided
into portlona-j-spot specially provided for: cod, haddock, hake,
pollock, /uusk^/and rosefish, entitled to entry for consumption at
1-7/8 ceutfr^per pound during the calendar year 1946 has been
increased to 20,380,724 pounds*
The Canadian Trade Agreement of Bovember 25, 1938, prescribes
that if the average apparent annual consumption of such fish in
the United States during the 3 calendar years preceding the year
in which such fish were entered, or withdrawn from warehouse for
consumption, exceeds 100,000,000 pounds, an additional quantity of
such fish equal to the amount by which 15 per centum of such
average apparent annual consumption exceeds the 15,000,000 pounds
may be entered, or withdrawn from warehouse, for consumption in that
year at the 1-7/8 cents per pound rate. It has been determined
that the average annual consumption of such fish for the calendar
years 194J, 19I&, and 19^5 was 135,871,495 pounds.
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E R E LEASE
Thursday, M a y 2, 1946
Press Service
No. V-312
T h e B u r e a u of Customs
quota of 15,OQOpOO pounds
p a eked in ice),
into portions,
of fish,
filleted,
not
a n n o u n c e d t o d a y that
fresh or froz e n
skinned,
"boned,
s p e c i a l l y p r o v i d e d for:
pollock,
cus'k, and rose fish,
en t i t l e d
at 1-7/8
cents per p o und d u r i n g
the
the tari f f - r a t e
(whether or not
sliced,
cod,
or d i v i d e d
haddock,
hake,
to e n t r y for c o n s u m p t i o n
ca l e n d a r y ear 1946 has b e e n
increased to 2 0 , 3 8 0 , 7 2 4 pounds..
The
C a n a d i a n Trade
scribes that
A g r eement of N o v e m b e r 25,
the
the yea'r in w h i c h such f i s h were
entered,
ditional
for consumption,
exceeds
pound rate.
an a d
c o n s u m p t i o n exceeds
or w i t h d r a w n
in that y e a r at the 1-7/8
from w a r e
cents p e r
It has bee n d e t e r m i n e d that the average annual
c o n s u m p t i o n of such fis h for the
1945 was
or w i t h d r a w n f rom
to the amount b y w h i c h 15
ap p a r e n t annual
the 1 5 , 0 0 0 , 0 0 0 pounds m a y be entered,
for c o n s u m p t i o n
3 c a l e n d a r years p r e c e d i n g
1 0 0 , 0 0 0 , 0 0 0 pounds,
qu a n t i t y of suc h f i s h equal
per c e n t u m of s u c h average
house,
prer
if the a v e rage ap p a r e n t ^annual c o n s u m p t i o n of such
fish in the U n i t e d States d u r i n g
warehouse
1938,
1 3 5 , 8 7 1 , 4 9 5 pounds.
oOo
c a l e n d a r years
1943,
1944 and
- 3 -
sold, redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 1*18, 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
-
Immediately after the closing hour, tenders vri.ll be opened at the Federal
Reserve Banks and Branches, following which public announcement -till be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
Subject to these reservations, tenders for $200,000
or less from any one bidder at 99.905 entered on a fixed-price basis vrill 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 ; May 9> 19l*6________ •
aS*
The income derived from Treasury bills, v;hether 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 here
after 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 pur
poses of taxation the amount of discount at which Treasury balls are originally
sold by the United States shall be considered to be interest.
Under Sections
h2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section ll5 of
the Revenue Act of 19Ul* the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS*
Friday, May 3, 19h6__________ .
The Secretary of the Treasury, by this public notice, invites tenders for
% 1 j300»000»000 j or thereabouts, of __ 91
-day Treasury bills, to be issued
to
3®
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series m i l be dated
ifay
9
_______ , and
will mature
August
19U6_____ , when the face amount will be payable with-
out interest.
They m i l be issued in bearer form only, and in denominations
Tenders m i l be received at Federal Reserve Banks and Branches up to the
closing hour, two o ’clock p.m., Eastern Standard time,
tfmviny. ^
Tenders will not be received at the Treasury Department, Yfashington.
19!^
Each
tender must be for an even multiple of $ 1 ,000, and the price offered must be
expressed on the basis of
Fractions may not be used.
100,
with not more than three decimals, e. g.,
99*925*
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
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N E W S PAPERS,
Friday, M a y 3, 1946
The S e c r e t a r y of the Treasury, b y this' publ i c notice, invites
•tenders for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , ' or thereabouts, of 9 1 - d a y T r e a s u r y
bills, to be issued on a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e and
f i x e d - p r i c e b i d d i n g a s .h e r e i n a f t e r p r o v i d e d • The b i l l s of this
series w i l l be d a t e d .May 9,. 1946, and w i l l m a t u r e A u g u s t .8, 1946,
w h e n the face amou n t w i l l be p a y a b l e w i t h o u t interest*
T h e y will
be issued in b e a r e r f o r m only, and in d e n o m i n a t i o n s of f.1,000,
$5,000, $10,000, 1 100,000, f 5 0 0 , 0 0 0 and ¿ 1 , 0 0 0 , 0 0 0 (maturity value).
T e n d e r s will be r e c e i v e d at Federal Re s e r v e B a nks a n d Branche;
up to the closing hour, two o ’c l o c k p.m., E a s t e r n Standard: time,
Monday, M a y 6, 1946*
T e n d e r s will not be r e c e i v e d at the T r e a s u r y
Department, Washington*
E a c h t e n d e r m u s t be for an e v e n •m u l t i p l e
of $1,000, and the price of f e r e d m u s t be e x p r e s s e d on the basis
of 100, w i t h . n o t m ore than three decimals, e* g*, 99*925*. F r a c
tions m a y n ot be used*
It is u r g e d that tenders be m ade on the
p r i n t e d forms and fo r w a r d e d In the special envelopes w h i c h w ill
be s u p p l i e d b y Federal Re s e r v e Banks or B r a n c h e s on a p p l i c a t i o n
therefor*
;
7'T.a
T e n d e r s wil l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
banks; and trust companies and fro m r e s p o n s i b l e and r e c o g n i z e d
d e a lers in i n v e stment securities*
T e n d e r s f r o m others mus t be
a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t o f the face a m ount of T r e a s u r y
bills a p p l i e d for, u n l e s s the tenders are a c c o m p a n i e d b y an e x
press g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or trust c o m
pany •
I m m e d i a t e l y a f t e r the c l o s i n g hour, tenders wil l be o p e n e d
at the Federal Re s e r v e B a n k s an d Branches, f o l l o w i n g w h i c h public'
a n n o u n c e m e n t will be mad e b y the S e c r e t a r y of the T r e a s u r y of the
amount and price range of a c c e p t e d bids.
Those s u b m i t t i n g tenders
wil l b e a d v i s e d of the a c c e p t a n c e or r e j e c t i o n thereof*
The
S e c r e t a r y of the T r e a s u r y e x p r e s s l y reserves the right to accept
or reje c t any or all tenders, in w h ole or in part, and his a c t i o n
in a n y such respect shall be final.
S u b j e c t to these reservations,
tenders for $ 2 0 0 , 0 0 0 or less f r o m an y one b i d d e r at 9 9 . 9 0 5 entered
on a fixe d - p r i c e basis wil l be a c c e p t e d in full.
P a y m e n t of
a c c e p t e d tenders at the. prices o f f e r e d mus t be m ade or c o m pleted
at the Federal R e s erve B a n k In c a s h or other i m m e d i a t e l y a v a i l
able 'funds on M a y 9, 1946*
The income d e r i v e d from. T r e a s u r y bills, w h e t h e r interest or
gain f r o m the sale or other d i s p o s i t i o n of the bills, shall not
have a n y exemption, as such; and loss f r o m the sale or other
d i s p o s i t i o n of T r e a s u r y bills shall not have any special t r e a t
ment,' as such, u n d e r Federal tax Acts n o w or h e r e a f t e r enacted.
The b i lls shall be subject to estate, Inheritance, gift, or
other excise taxes, w h e t h e r Federal or State, but shall be e x
empt f r o m all t a x a t i o n h o w or h e r e a f t e r imposed on the p r i n cipal
V-315
(Over)
2
o r i n t erest t h e r e o f b y a n y ..fetste, or a n y o f - t h e 1 p o s s e s s i o n s of
the U n i t e d States,: or by. any local t a xing a u t h ority.
P'or p u r
poses of t a x a t i o n the amou n t of d i s c o u n t at w h i c h T r e a s u r y bills
are o r i g i n a l l y sold b y .the U n i t e d States shall be c o n s i d e r e d to
be Interest.
U n d e r Sec t i o n s ¿2 and 117 (a) (1) of the Internal
•Revenue Code, as a m e n d e d b y S e c t i o n 115 of the R e venue Act o.f
1941,. the a m o u n t of d i s count at w h i c h bills Issued 'hereunder are
sold shall not be c o n s i d e r e d to accrue u n til s u c h bills shall be
sold, r e d e e m e d or o t h e r w i s e d i s p o s e d of, and s u c h bills are
excluded from c o n s i d e r a t i o n as capital a s s e t s ... Acco r d i n g l y , the
o w ner of T r e a s u r y b i l l s ’ (other than life insurance companies)
issued h e r e u n d e r need Include In his income tax return only the
d i f f e r e n c e b e t w e e n the price paid f o r 's u c h bills, w h e t h e r on
original
issue or on s u b s e q u e n t purchase, and the amount actually
re c e i v e d e i t h e r * u p o n Sale or r e d e m p t i o n at m a t u r i t y d u r i n g the
taxable y e a r for w h i c h the r e t u r n is made, as o r d i n a r y g a i n or
loss.
T r e a s u r y D e p a r t m e n t C i r c u l a r No, 418, as amended, and this
notice, pre s c r i b e the terms of the T r e a s u r y b i l l s and g o v e r n the
cond i t i o n s of their issue.
Copies o f t h e ’c i r c u l a r . m a y be obtained
f r o m any Federal Reserve B a n k op Bfanch.
oOo
Manager of the Engineering Laboratories and Standards Department of Westinghouse
Electric Corporation) Co L» Warwick* Secretary of the American Society for
Testing Haterdalejand Warren H* Watson* Secretary of the Manufacturing Chemists
Association«
The Council will serve in an advisory capacity to the Federal Specification
Beard* composed of representatives from ten Government agencies and established
last August by Clifton E# Mack* Director of the Treasury’s Procurement Division*
The Beard* in cooperation with the standards Branch of the Procurement Division*
prepares purchase specifications for supplies used by the Federal Government*
TREASURY DEPARTMENT
Washington
Vlnson announced todaye Chosen for their outstanding
contributions in the field of industrial standards and specifications* they
will serve as sombers of a newly created Industry Advisory Council to the
Federal Specifications Board«
By thus gaining the viewpoint and technical participation of industry* the
bringing together the mutual interests of the Government and industry and for
keeping the Government informed of new developments* improved practices and
manufacturing processes* the Secretary said*
C oovn/eu
At the same time he announced the appointment of Howard Gemiey as Chairman
Coonlcy
of the Council for a one-year term« Mr.
Csmisy
is Chairman of the Executive
Committee of the American Standards Association and member of the Beard of the
Walworth Company*
Other members, also serving at the Secretaryfs request* aret P* Go Agnew*
Vice President and Secretary ef the American ^Standards Association!
Clarence L« Collens, Chairman of the Board of the Reliance Electric and Engineering
Company, representing the National Electrical Manufacturers Association! L* A* Dass«
Chairman of the Metallurgical Committee of General Motors| representing the
Society ef Automotive Engineers! Vincent dePaul Goubeau, General Purchasing Agent
and Director of Materials of the Radio Corporation of America! Clifford B* LePag«#
Assistant Secretary of the American Society bf Mechanical Engineers! Harold S« Osbefl
Chief Engineer of American Telephone and Telegraph Companyg Thomas Spooner*
TREASURY DEPARTMENT
Washington
FOR I M M E D I A T E RELEASE,
Friday, M a y 5, 1946
Press Service
N o * V-314
L e a d e r s in i n d ustry and in n a t i o n a l l y r e c o g n i z e d technical
and p r o f e s s i o n a l societies will assi s t In the d e v e l o p m e n t of
Federal specifications, S e c r e t a r y Vinson a n n o u n c e d today. Chosen
for t h e i r o u t s t a n d i n g c o n t r i b u t i o n s in the field of industrial
standards and specifications, they w i l l serve as m e m b e r s of a
n e w l y created. I n d u s t r y A d v i s o r y C o uncil to the Federal S p e c i f i
cations B o a r d .
B y thus ga i n i n g the viewpoint and technical p a r t i c i p a t i o n
of industry, the G o v e r n m e n t seeks to d e v e l o p Federal s p e c i f i c a
tions w h i c h c o n f o r m b o t h to its own r e q u i r e m e n t s and to
industrial practice.
T h r o u g h e s t a b l i s h m e n t of the C o u ncil an eff e c t i v e m e d i u m
is p r o v i d e d for b r i n g i n g t o g e t h e r the m u t u a l interests of the
G o v e rnment and i n d u s t r y and for k e e p i n g the G o v e r n m e n t informed
of n e w d evelopments, improved p r a c t i c e s and m a n u f a c t u r i n g p r o
cesses, the S e c r e t a r y said.
At the same time he a n n o u n c e d the a p p o i n t m e n t of H o ward
C o o n l e y as C h a i r m a n o f the C o u n c i l for a o n e - y e a r term*
Mr.
C o onley is C h a i r m a n of the E x e c u t i v e C o m m i t t e e of the A m e r i c a n
Sta n d a r d s A s s o c i a t i o n and m e m b e r of the B o a r d of the W a l w o r t h
Company.
O t h e r members, also serving at the S e c r e t a r y ’s request,
ares P. G. Agnew, Vice P r e s ident a nd S e c r e t a r y of the A m e r i c a n
Sta n d a r d s A s s o c i a t i o n ;
C l a r e n c e L. Collens, C h a i r m a n of the '
Board o f the R e l iance E l e c t r i c and E n g i n e e r i n g Company, r e p r e
senting the N a t i o n a l E l e c t r i c a l M a n u f a c t u r e r s Assoc i a t i o n ;
L. A. Danse, C h a i r m a n of the M e t a l l u r g i c a l C o m m i t t e e of General
Motors, r e p r e s e n t i n g the S o c i e t y of A u t o m o t i v e E ngineers;
Vincent dePaul Goubeau, Genera] P u r c h a s i n g A g e n t and D i r e c t o r
of M a t e r i a l s of the Radio C o r p o r a t i o n of America;
C l i f f o r d B,
LePage, A s s i s t a n t S e c r e t a r y of the A m e r i c a n S o c i e t y of M e c h a n i
cal E n g i n e e r s ;
H a r o l d S. Osborne, C h i e f E n g i n e e r of A m e r i c a n
T e l e p h o n e and T e l e g r a p h Company,
T h omas Spooner, M a n a g e r of
the E n g i n e e r i n g L a b o r a t o r i e s and S t a n d a r d s D e p a r t m e n t of W e s t
inghouse E l e c t r i c Corpo r a t i o n ;
CL L* W a r wick, S e c r e t a r y of the
Am e r i c a n S o c i e t y for T e s t i n g M a t e r i a l s ;
and W a r r e n N. Watson,
S e c r e t a r y of the M a n u f a c t u r i n g C h e m i s t s A s s o c i a t i o n .
The C o uncil w i l l serve in an a d v i s o r y c a p a c i t y to the
Federal S p e c i f i c a t i o n s Board, co m p o s e d of r e p r e s e n t a t i v e s f r o m
ten G o v e r n m e n t a g e ncies a nd e s t a b l i s h e d last A u g u s t by C l i f t o n
E-, Mack, D i r e c t o r of the T r e a s u r y ’s P r o c u r e m e n t Div i s i o n .
The
Board, in c o o p e r a t i o n w i t h the S t a n d a r d s B r a n c h of the P r o c u r e
ment Division, pre p a r e s pu r c h a s e s p e c i f i c a t i o n s for supplies
used by the Federal Government.
^
STATUTORY D M ? LIMITATION
AS 01 APRIL 30. iq4g
- r
Section 21 of the Second Liberty Bond Act, as amended, provides that the face amount
of obligations issued under authority of that Act, and the face amount of obligations
guaranteed as to principal and interest by the United States (except such guaranteed
obligations as may be held by the Secretary of the Treasury), "shall not exceed in the
aggregate $300 ,000 ,000,000 outstanding at any one time,"
The following table shows the face amount of obligations outstanding and the face
amount which can still be issued under this limitation:
Total face amount that may be outstanding at any one time
Outstanding April 30» *946
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Bonds
Treasury. ••••••*•••*♦•••»♦•.• .$121,177*390 »350
Savings (maturity value)*...#
59»**67*937*900
Depositary. ............ .
436 »360,000
500,137,936 J$181,581,846,206
Adjusted Service...........
$300 ,000 ,000,000
Treasury notes. •••..........
3 7 *497»04l,800
Certificates of indebtedness...
47,038,623,000
101.589,411,800
Treasury B
i
l
l
s
.
17.053,747,000
Total interest-bearing.....•••••...... .
283,171.258,006
Matured, i n t e r e s t - c e a s e d . 202,829,858
Bearing no interest
War Savings Stamps.... ..... .
104,496,699
Excess profits tax refund bonds_____ 81,638,681 ____ 186,135,380
Total.... ...... ..... .............. - .........
283 ,560*223 ,2^
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: 3P.H.A. •••••••••..
41,066,086
Demand obligations: C.C.C. ... ____ 492,214,135
Matured, interest-ceased........................ *
533,280,221
10.783,425
544,063,646
Grand total outstanding................. ......... .......
Balance face amount of obligations issuable under above authority.
284.104,286.890
15,895,713,110
Reconcilement with Statement of the Public Debt — April 30» 19^6
(Daily Statement of the United States Treasury, May 1, 1946)
Outstanding April 30, 1946
k
, h
Total gross public debt............................ ................
2 73*??«•??3>534
5^4.063,646
Guaranteed obligations not owned by the Treasury....*..»........»..«*.
274,4H2,547,280
Total gross public debt and guaranteed obligations*
Add - unearned discount on U.S. Savings Bonds
(Difference between maturity value and current redemption value)
10,640,06l,735
Deduct - other outstanding public debt obligations
9 ,661,739,610
not subject to debt l i m i t a t i o n . 978,322,125.
284,104,286,890
* Approximate face or maturity value; current redemption value $48,82p5f^76,l65
RHMolroe/MC 1
5 /3/H6
V
„
— 5u-
statutory debt limitation
AS OF APRIL 30, 19¿6
Section 21 of the Second Liberty Bond Act, as amended, provides that the face
amount of obligations issued under authority of that Act, and the face amount of
obligations guaranteed as to principal and interest by the United States (except
such guaranteed obligations as may be held by the Secretary of the Treasury), "shall
not exceed in the aggregate $300,000,000,000 outstanding at any one time."
The following table shows the face amount of obligations outstanding and the
face amount which can still be issued under this limitations
Total face amount that may be outstanding at any one time
$300,000,000,000
Outstanding April 30, 194-6
>
Obligations issued under Second Liberty Bond Act, as amended
Interest-bearing
Bonds
Treasury................ $121,177,390,350
Savings (maturity value )*59*467,937,900
Depositary......... .
436,360,000
Adjusted Service........
500.157.956 $181,581,846,206
Treasury notes............
37,497,041,800
Certificates of indebtedness
47,038,623,000
Treasury Bills..... .
17.053.747.000
Total interest-bearing......... ........
Matured, interest-eeased,.....................
Bearing no interest
War Savings Stamps.........
104,496,699
Excess profits tax refund bonds
81,638 ,*681
Total............ ............................
101 , 589. 411.800
283,171,258,006
,
202 829,858
186,135,380
283,560,223,244
Guaranteed obligations (not held by Treasury)
Interest-bearing
Debentures: F.H.A.........
41,066,086
Demand obligations: C, C.C, .
492,214,135
Matured, interest-ceased......................
533,280,221
10,783.425
544.063.646
Grand total outstanding.......... ................................ 284,104,286,890
Balance face amount of obligations issuable under above authority .. 15,895,713,110
Reconcilement with Statement of the‘Public Debt - April 30, 1946
(Daily Statement of the United States Treasury, May 1, 1946)
Outstanding April 30, 1946
Total gross public debt.................... ...................... 273,898,483,634
Guranteed obligations not owned by the Treasury..................
544,063,646
Total gross public debt and guaranteed obligations..... .......... 274,442,547,280
Add - unearned discount on U.S. Savings Bonds
(Difference between maturity value and current redemption value)
10,640,061,735
Deduct - other outstanding public debt obligations
not subject to debt limitation...... ......
978,322,125
9,661,739,610
.284,104,286,890
* Approximate face or maturity valuej current redemption
value $48,827,876,165
7-315
*»
^
This is because so many people think that
the danger has completely passed.
We have
nearly won the battle of peacetime
production and reconversion, Just as we
won the battle of production for war.
We « 1st not lose the fruits of that
victory now by ruinous inflation which
can only end in depression, unemployment
and economic stagnation# Above all, let
us keep faith with the American people
who fought and worked to preserve a
sound and strong America.
#
That’s because all of us have a stake in
an economy that works, an economy that
is stable.
Inflation now means deflation
later; and deflation means depression*
Every worker, every farmer and every
businessman suffers from depression.
He
suffers in unemployment and in lower pay
he suffers in unsalable surpluses and In
unremnerative prices; he suffers in
decreased production and in unprofitable
business.
j
^
t
L
6
The danger of inflation is far
greater today than it was in time of war.
There are millions of people in this
position —
school teachers and white
collar workers whose w *
rise little
and late| old people who after a
lifetime of work live in modest
retirement on their limited savings}
disabled veterans, and the widows and
orphans of our fighting men who depend
on their small pensions to keep them
going*
These are the folks who feel
Inflation first and most.
Let's make no mistake about it.
In
the end, everybody suffers from inflation
ait if we remove prie© controls too
soon# these same savings will he
used to bid up prices before goods
have been produced to match the
demand.
This inflationary process
can have only one result!
the
destruction of the savins of our
people and# in the end# a disastrous
depression.
Rising prices will hit a lot of
people hard.
So Senator needs to be
told how quickly even a slow rise
in {rices eats into a fixed income.
\
«. 2 7 «
Ihat we do on price control
during tne next year will determine
whether this great backlog of demand
will bring prosperity or inflation.
If we keep price controls a little
longer —
and keep thee really
effective —
the accumulated savings
of the public can result in a sustained
demand for houses, automobiles,
refrigerators and other goods for
many years to come.
26
W©fmust extend the Price Control Act# and
we must extend It without crippling
amendments*
I have great faith In the practical
common sens® of our people,
they
responded throughout the war to every
appeal for more production# more taxes
and more saving*
The workers In the
factories and farms# and the men and
women In the fighting forces saved a
very large part of their Incomes.
are saving now*
They
These savings are part
of the great backlog of demand that can
keep American production going*
The Treasury
is going
to continue
to sell savings bonds to the people.
When we ask the people to put their
savings into these bonds* we must also
give them the assurance that their
savings will have 100 cents of buying
power for ©very dollar*
We must and
will keep faith with the bondholders
who have put their trust in the
Government.
The bonds they buy and
hold Lalp keep down inflation#
They
are doing their part in the fight.
%e m a t do mars.
** 2l|. ***
In the peat two months, we have reduced
eft, ava^f o
the public debt by
$7 b l l M
o n from
surplus funds in the Treasuryj and this
reduction will continue in an orderly
way as rapidly as our finances permit.
In meeting maturing obligations,
we have been particularly concerned to
pay off the securities held by the
banks.
The only new securities issued
since the Victory Loan Drive have been
savings bonds and tax savings notes.
We have continued to press the sale of
savings bonds because they are one of
the best ways to fight Inflation,
#
•
2J -
The net receipts of the United States
Government for the month of March — *
the last major tax month —
amounted to
5 5 * ? M i l ion, a decline from the same
month last year of only about 17
percent «
As a result of these rapidly
declining expenditures and well-maintained
receipts, the Treasury showed a surplus
of receipts in each of the months of
February and March#
There will be some
net deficit during the reminder of this
fiscal yeari but the budgetary outlook
for 1947 is very good#
22
Our fiscal policy Is an important part
of the program to fight inflation.
The total expenditures of the
Federal Government in April of last year
trgùf
amounted to $8.0 billion. This April
they were $k.2-%ttrllon, a shrinkage of
nearly 50 percent.
This rapid decrease
will continue until we are on a
peacetime basis.
In the meantime, revenues have held
up remarkably well.
is —
The reason for this
as the President has said — • * # # #
we are well on the
highroad to full
peacetime production*.
21
Not until there Is a full flow of goods
available for sal© to consumers can we
safely dispense with price controls.
That will probably take another year.
The other side of this return of
our economy to peacetime production —
the side with which I am particularly
concerned as Secretary of the Treasury —
is that the Government is moving
rapidly toward a balanced budget,
le
are reducing Government expenditures
and paying off Government debt.
*» 2 0 #
Some of the goods produced are not
going to consumers ri^it now.
They are
going into tools and machines and
working stocks for new and increased
peacetime production*
This is
especially true of the durable goods*
That is one reason the danger of
inflation has not passed*
pass until we have
It will not
finished the
reconversion of production and filled
the pipe line through which goods flow
from the producer to the consumer*
19
That’s because the public is earning
more
money than
ever before in peacetime
and wants to consume more than ever
before.
Folks who never had a proper
diet are buying meat and milk and eggs*
Folks who never could afford nice
clothes and stockings are buying —
trying to buy —
nylons.
or
suits and drosses and
I think it’s all to the good
to see this great demand.
produce enough to meet it.
We can
But I t will
take time, particularly because the
public has been short of these goods
for five years, and because we are just
returning to peacetime production.
** 18
Retail sales In this country in the
first quarter of 191*6 were at an annual
¡¡'ins crer&jmr®
rate of $89*5 -M14lJMf<~ 60 percent
more in dollar value and 22 percent
more in volume than 191*1« When you
exclude the durable goods which are only
beginning to cone on the market, the
increase in dollar value of retail
sales is more than 85 percent and the
increase in physical volume more than
1*0 percent.
Of course, there is a scarcity of
many goods, despite the record volume tf
retail sales«
— 17 ■**
The basic inflationary pressures had
their origin
in the compelling necessity
of devoting half of our production to
war purposes for nearly four years*
The war ended only eight months ago*
In these few months since VJ«Day w©
have reached a level of civilian
production never before equalled in
this country.
And this stream of
production is steadily rising day by
Some people have asked where the
production Is going.
16 t statement «
it it* and I do
holds.
You do
»ant It,
President does not want It,
The
We have
trying all along to get rid of
controls as soon as It is possible
to do so without Inflation,
be patient.
But
We cannot gamble with the
of the American
problems which the OPA has to
et are temporary in character,
are
1
dealing with these problems In the
one way that will finally solve them -»
by production.
-
15 »
There Is no basis for the fear that
price control of the sort exercised by
OPA will become part of our permanent
economic structure*
The problems with
which OPA Is now dealing are caused by
the transition from a wartime to a
peacetime economy*
At the same time that 1 told your
Committee, in the Spring of 19U,, that
a one-year extension of price control
after the war would probably not be
enough to solve our transition problems,
1 also assured you that OPA would not
become a permanent part of our economy*
We cannot afford to have half a million
families lose their farms in the
aftermath of another inflation#
We
cannot afford to lave 20,000
bankruptcies a year because prices are
first inflated and then collapse.
That
is why it is necessary to extend price
control at this time*
We must not
repeat the mistake vis made after the
last w a r .
But I want to emphasize equally
strongly that the extension of OPA i s
only temporary.
15
Industrial production fell 55 percent*
ft saw the effects of this deflation
on the
fan»
and In the factories*
g i r o ,
Net
ro ,
< ? z n s
farm Incomes dropped from $0^8-MHlon
in 1919 to less than $5 p illion In 1921.
Factory employment fell over 50 percent
during this period* and factory
payrolls fell nearly 50 percent*
We do not want to repeat that
performance.
We do not have to.
Our
duty is to see that these same tragic
events do not happen this time.
** 1 2 «•
Shortly after the Armistice, such
price controls as hah existed during
the last war were abolished.
know what happened*
W© all
Prices rose for
another year and a half at an even
faster rate than during the war.
By
1920, living costs were 108 percent
above 191k.
collapse*
And then came the
Prices took a nose dive, as
they always do after an inflation.
The price of corn fell 78 percent,
cotton 75 percent, tobacco 70 percent,
hogs 66 percent, wheat 65 percent, and
so for other products.
— IX —
F o r t h is r e a s o n , p r ic e c o n tr o l in
W o r ld W a r I w a s s t a r t e d t o o l a t e a n d
a p p lie d i n e f f e c t i v e l y ,
E x c e p t in
s p e c ia l a r e a s , su ch a s fo o d an d f u e l ,
i t n e v e r o p e ra te d u n d er a c le a r -c u t
le g is la t iv e s a n c tio n .
A s a con sequ en ce,
p r i c e s r o s e t w i c e a s m u ch i n W o r ld W a r I
a s i n W o r ld W ar
II,
a lth o u g h th e w a r w a s
m uch s h o r t e r a n d i n f l a t i o n a r y p r e s s u r e s
w ere o n ly o n e -h a lf a s g r e a t .
I s a y o n ly
h a l f a s g r e a t , b e c a u s e about 25 p e r c e n t
o f th e n a tio n a l p r o d u c tio n w e n t in to th e
w a r e f f o r t a t t h e p e a k o f W o r ld f a r I , a s
c o m p a r e d w i t h a b o u t 50 p e r c e n t a t t h e p e a k
o f W o r ld W ar
II.
** 1 0 •*
T h is i s t h e t e m p t a t io n w h ic h f a c e s u s
t o d a y , a n d t h e te m p ta tio n w h ic h w c m u st
a v o id *
f© m u s t p r o f i t b y e x p e r i e n c e .
We
h a v e le a r n e d m u ch fr o m t h e e x p e r ie n c e
o f W o r l d W a r 1 in m a n y f i e l d s .
We can
le a r n m uch fr o m I t I n t h e f i e l d o f p r i c e ,
c o n tr o l a ls o .
I n W o r ld W ar 1 , l i t t l e
r e lia n c e m s p it on th e d ir e c t c o n tr o l
o f p r ic e s an d p r o d u c tio n .
T o o m any
p e o p le a c c e p te d a s dogm a th e d o c tr in e
t h a t t h e G o ve rn m e n t c o u ld d o n o th in g t o
c o n tr o l p r o d u c tio n an d p r i c e s .
. 9 -
T h e y c o n tin u e u n t i l w e c a n f in i s h
t o o lin g u p f o r p e a c e tim e p r o d u c tio n ;
th e y c o n tin u e u n t i l w e c a n g e t th e
m em bers o f th e arm ed f o r c e s b a c k in t o
in d u s tr y ; th e y c o n tin u e u n t i l w e c a n
f i l l u p th e lo n g p ip e l i n e s b e tw e e n th e
f i r s t s t a g e s o f p r o d u c tio n a n d th e
u ltim a te co n su m e r; th e y c o n tin u e u n t i l
w e ca n s a t i s f y th e m ost u rg e n t dem ands
w h ic h h a v e b e e n p e n t u p d u r in g t h e w a r ,
Y e s, th e in fla tio n a r y p r e ssu r e s
c o n tin u e f o r som e tim e a f t e r t h e w a r ,
b u t th e te m p ta tio n t o r e la x an d l e t dow n
o u r gu a rd is g r e a t«
mm
Q
mm
th e s e p r ic e c o n tr o ls a r e s t i l l
n e c e s s a r y d u r i n g tn ® r e c o n v e r s i o n
p e r io d ,
I t o l d t h i s C o m m itte e o v e r tw o
y e a r s a g o , w hen yo u w ere c o n s id e r in g
t h e e x t e n s i o n o f th ® P r i c e C o n t r o l A c t
i n t h e S p r i n g o f l% ii.# t h a t a n e x t e n s i o n
of
th® A c t f o r a l o n g e r p e r i o d t h a n o n e
y e a r a f t e r t h e w a r w o u ld p r o b a b ly b e
n ecessary*
A s I s a id a t t h a t tim e ,
, th e m o st s e r io u s d a y s w i ll b e th e
p o s tw a r d a y s o n t h e e c o n o m ic f r o n t " .
T h e I n f l a t i o n a r y p r e s s u r e s w h ic h a r e
g e n e r a te d b y w ar c o n tin u e d u r in g th e
r e c o n v e r s io n p e r io d *
tm
*•*
T h e p e o p le w e r e p a id f o r p r o d u c in g
w ar g o o d s fo r th e G overn m en t a s w e ll a s
c i v i l i a n g o o d s fo r th e p e o p le *
No
w o n d e r th e y c o u ld n o t b u y a s m uch o f
e v e r y t h i n g a s t h e y w o u ld o r d i n a r i l y
h ave lik e d .
H a lf o f t h e in c o m e o f t h e
p e o p le c o u ld n o t b e s p e n t i f i n f l a t i o n
m s t o b e a v o id e d .
T h rough h eavy
t a x a tio n an d th r o u g h v o lu n ta r y s a v in g ,
co n su m e r s p e n d in g w a s k e p t dow n
th ro u g h o u t th e w a r*
P r ic e c o n tr o ls
p r e v e n te d a s h o r t a g e o f g o o d s fr o m
le a d in g t o th e c o m p e titiv e b id d in g u p
o f p r ic e s .
T h e y le a d t o s p e c u la tio n a n d h o a r d in g
o f m a te r ia ls .
T h e y c r e a t e m a la d ju s tm e n ts
i n t h e w h o le s t r u c t u r e o f p r o d u c t io n a n d
p r ic e s *
O ur p r ic e c o n tr o l d u r in g th e w a r
m ade i t p o s s ib le t o g e t f u l l p r o d u c tio n
a n d t o h o ld i n c h e c k t h e p o w e r fu l w a r tim e
fo r c e s o f in fla tio n .
D u r in g t h e w a r * 1 2 o
• ,r iB W '« *. o f o u r m o s t p r o d u c t i v e y o u n g
m en a n d w om en w e r e t a k e n o u t o f
a g r ic u ltu r e and in d u s tr y to g o in to
th e arm ed f o r c e s .
A bout h a lf o f our
t o t a l p r o d u c tio n w e n t t o w a r *
jpl 4
N
»
W hen p r o d u c t i o n m u s t b e i n c r e a s e d
q u i c k l y a n d s h i f t e d t o new l i n e s , so»®
increase in costs is inevitable.
Price
Increases sufficient to compensate for
su ch in c r e a s e s in c o s ts a r e n e c e s s a r y
t o l e t p r o d u c tio n g o fo r w a r d »
Such
p r ic e r is e s s e r v e a u s e fu l fu n c tio n .
B u t p r ic e in c r e a s e s b eyo n d th e
a m o u n t n e c e s s a r y t o g e t t h e m a x im u m
p o s s ib le o u tp u t a r e in f la t io n a r y .
T h e y d e c r e a s e p r o d u c tio n in s te a d o f
in c r e a s in g i t *
Such p r ic e r is e s s e r v e
no u s e fu l fu n c tio n .
In
fact, w e w o u l d n o t h a v e b e e n
/*****,.
s u c c e s s fu l In a c h ie v in g o u r w ar
p r o d u c tio n g o a ls i f w e h a d p e r m itte d
ru n aw ay p r ic e s *
I t i s in i t s e l f a
g r e a t a c c o m p lis h m e n t t o h a v e I n c r e a s e d
o u r t o t a l p r o d u c tio n b y a b o u t 7 9
p e r c e n t an d t o h a v e p u t n e a r ly a l l o f
t h is in c r e a s e in to th e w ar e f f o r t *
To
h a v e d o n e t h i s w ith a m o d e r a te r i s e in
p r ic e s i s a lm o s t a m ir a c le .
I t i s im p o s s ib le t o a v o id som e
r is e in p r ic e s u n d er w ar c o n d itio n s *
The years that lie ahead hold for our
people the promise of the greatest
peacetime production and the highest
"\ living standards the world has ever
known«
But the eomlng year is also
filled with danger«
The prospect for
material abundance could be changed to
one of want and despair if we do not
win this last round in the fight against
inflation»
We won the battle of production
during the war and we held prices
within reasonable limits»
2
We in the Administration and you in
Congress have worked together on these
problems of the American people.
Your
Committee has dealt with sane of the
most important legislation of the war
and postwar period*
I am very glad to
appear before you to discuss the number
on® domestic problem with which we must
deal right now — > the problem of price
control and inflation*
This can be a great era of American
achievement.
Statement by Fred M. Vinson, Secretary of
the Treasury, before the Senate Committee
on Banking and Currency
!Gr36 A»M», May 7, 194-6
/ £. Î0
/9 A 7
a.
t
M U C lV
W9WMSF V
H W * < **»
be met before we have safely passed
through the dangerous aftermath of
war*
The American people have done a
good 30b.
The great strength of
character they showed Is a reflection
of the enduring value of our democratic
system of free government and of our
business system of free enterprise.
Treasury Department
We are 1 iving in a critical
period of American history,
we have
fought successfully the greatest of
all wars.
We shall soon have completed
the reconversion of our economy to peace.
There are many problems that must still
be met before w© have safely passed
through the dangerous aftermath of war.
The American people have done a
good Job.
The great strength of
character they showed is a reflection
of the enduring value of our democratic
system of free government and of our
business system of free enterprise.
1
1
5
TREASURY DEPARTMENT
Washington
Sta t e m e n t by Fred M\ Vinson, S e c r e t a r y of
the Treasury, b e f o r e the Senate C o m mittee
on B a n k i n g and C u r r e n c y
1 0 : 0 0 A.M.,
Tuesday,
M a y 7, 1946
We are l i v i n g in a critical p e r i o d of A m e r i c a n history*
We have fought s u c c e s s f u l l y the g r e a t e s t of all wars.
We
shall soon have c o m pleted the r e c o n v e r s i o n of our ec o n o m y to
peace.
T h ere are m a n y p r o b l e m s that must still be met b e f o r e
we have safely p a s s e d t h r o u g h the d a n g e r o u s a f t e r m a t h of war.
The A m e r i c a n people have done a good job*
The great
str e n g t h of c h a r a c t e r they s h o wed is a r e f l e c t i o n of the
enduring value o f our d e m o c r a t i c s y s t e m of free g o v e r n m e n t
and of our b u s i n e s s s y s t e m of free enterprise.
We in the A d m i n i s t r a t i o n and y o u in Congr e s s have w o r k e d
t o g ether on these p r o blems of the A m e r i c a n people.
Your Com
mittee has dealt w i t h some of the m ost important l e g i s l a t i o n
of the w ar and p o s t w a r period*
I a m v ery g l a d to a p p e a r b e
fore y o u to d i scuss the n u m b e r one d o m e s t i c p r o b l e m w i t h which'
we must d e a l right n o w -- the p r o b l e m of price control and in
flation*
This can be a great era o f A m e r i c a n achie v e m e n t *
The
years that lie ahead hold for our people the promise of the
greatest p e a c e t i m e p r o d u c t i o n and the h i g h e s t l i ving standards
the w o r l d has e v e r known*
But the coming y e a r is also filled
w i t h danger.
The p r o s p e c t for m a t e r i a l a b u n d a n c e could be
changed to one of w a n t and d e s p a i r if we do not w i n this last
round in the fight ag a i n s t inflation.
W e w o n the b a t t l e of p r o d u c t i o n d u r i n g the w a r and we
held prices w i t h i n rea s o n a b l e limits*
In fact, we w o u l d not
have b e e n s uccessful in a c h i e v i n g our w a r p r o d u c t i o n goals if
we had p e r m i t t e d r u n a w a y prices. ; It is in itse l f a great
a c c o m p l i s h m e n t to have i n c r eased our totsil p r o d u c t i o n by about
75 percent and to have put n e a r l y all of this increase into
the w a r effort.
To hav e done this w i t h a m o d e r a t e rise in
prices is almost a mir a c l e *
V-316
• 2
It is i mpossible to avoid some rise in prices u n d e r wa r
conditions*
W h e n p r o d u c t i o n m u s t be increased q u i c k l y and
shifted to n e w lines, some increase in costs, is inevitable*
Price increases suf f i c i e n t to compensate for such increases1
in costs are n e c e s s a r y to let p r o d u c t i o n go forward*
Such
price rises serve a u s e f u l function.
But price increases b e y o n d the amount n e c e s s a r y to get
the m a x i m u m possible outp u t are i n f l a tionary*
T h e y dec r e a s e
p r o d u c t i o n i n s tead of i n c r e a s i n g it*
S u c h price rises serve
no u s e f u l function*
T h e y lead to s p e c u l a t i o n and h o a r d i n g
of m a t e r i a l s *
T h e y create m a l a d j u s t m e n t s In the whole s t r u c
ture of p r o d u c t i o n a n d prices*
Our price control d u r i n g the w a r mad e it po s s i b l e to get
full p r o d u c t i o n and to h o l d in check the p o w e r f u l w a r t i m e
forces of inflation*
D u r i n g the war, 1 2 , 0 0 0 , 0 0 0 of our most
prod u c t i v e y o u n g m e n and w o m e n w e r e taken out of a g r i c u l t u r e
and i n d u s t r y to go into the a r med forces*
A b out h a l f of our
total p r o d u c t i o n wen t to w a r *
T he people w ere paid for p r o d u c i n g w a r goods for the
Gove r n m e n t as well as civ i l i a n goods for the people*
No w o n d e r
they c o u l d n ot b u y as m u c h of e v e r y t h i n g as they w o u l d o r d i n a
rily have l i k e d *
H a l f of the income of the people could not
be spent If i n f lation was to be avoided.
Through- h e a v y t a x
ation and t h r o u g h v o l u n t a r y saving, c o n s u m e r spending was kept
down thr o u g h o u t the war*
Price controls p r e v e n t e d a shortage
of goods f r o m l e a ding to the comp e t i t i v e b i d d i n g up of prices*
T h ese price controls are still n e c e s s a r y d u r i n g the r e
c onversion period.
I told this Com m i t t e e over two y e ars ag$,
whe n y o u wer e c o n s i d e r i n g the e x t e n s i o n of the Price Control" ’
Act in the S p r i n g of 1944, that an e x t e n s i o n of the Act for
a l o n g e r p e r i o d than one y e a r a f t e r the w a r w o u l d p r o b a b l y be
necessary*
As I said at that time, ” * f */the most serious
days wil l be the p o s t w a r days on the e'bohomic f r o n t ” *
T h e i n f l a t i o n a r y p r e s s u r e s w h i c h are g e n e r a t e d b y w ar
continue d u r i n g the r e c o n v e r s i o n p e r iod*
T h e y continue u n til
we can f i n i s h to o l i n g up for p e a c e t i m e prod u c t i o n ; they c o n
tinue u n til we can get the m e m b e r s of the a r m e d forces b a c k
into industry; they c o n tinue u n til we can fill u p the long
pipe lines b e t w e e n the first stages of p r o d u c t i o n and the u l
timate consumer; they continue u n t i l we can s a t isfy the most
u r gent de m a n d s w h i c h have b e e n pent u p d u r i n g the war*
- 3 -
Yes, the i n f l a t i o n a r y p r e s s u r e s c o n tinue for some time
after the war, but the t e m p t a t i o n to relax and let d o w n our
guard is great#
This is the t e m p t a t i o n . w h i c h faces us today,
and the t e m p t a t i o n w h i c h we m u s t avoid#
W e m u s t prof i t b y experience#
We have l e a r n e d m u c h f r o m
the e x p e r i e n c e of W o r l d W a r I in m a n y fields,
W e can learn
m u c h f r o m it In the f i eld of price control also#
In W o r l d W a r I,
little r e l iance w a s put on the direct; control of prices and p r o
duction.
Too m a n y people a c c e p t e d as. dogma the do c t r i n e that
the G o v e r n m e n t could do n o t h i n g to control p r o d u c t i o n and prices#
For this reason,
price control, ;in W o r l d W a r X was started
too late and a p p l i e d i n e f f ectively. E x c e p t in. special areas,
such as food and fuel, it n e v e r opera-bed u n d e r a clear-cut
l e g i slative sanction.
As a c o n s e quence, p r ices rose twice as
m u c h in W o r l d W a r I as in W o r l d W a r II', a l t h o u g h the- w a r was
m u c h s h o r t e r and I n f l a t i o n a r y p r e ssures wer e only o n e - h a l f as
great#
I say only h a l f as great, b e c a u s e about 25 pe r c e n t of
the n a t i o n a l p r o d u c t i o n w e n t into the w a r effort at the p e a k
of W o r l d W a r I, as c o m p a r e d w i t h about 50 percent at the p e a k
of W o r l d W a r II.
S h o r t l y a f t e r the A rmistice, s u c h price controls as had
existed d u r i n g the last w a r were abolished#
We all kno w what
happened#
Prices rose for a n o t h e r y e a r and a h a l f at an even
faster rate than d u r i n g the war#
By 1920, l i ving costs w e r e
108 p e r c e n t above 1914#
A n d then came the collapse.
Prices
took a n ose dive, as they always do a f t e r a n inflation#
The
price of corn fell 78 percent, c o t t o n 75 percent, tobacco
70 percent, hogs 66 percent, w h e a t 65 percent, and so for other
products.
Industrial p r o d u c t i o n fell 33 percent#
We saw the effects o f this d e f l a t i o n on the farms and in
the f actories.
N et f a r m incomes d r o p p e d f r o m $ 8 , 8 0 0 , 0 0 0 , 0 0 0
in 1919 to less t h a n $ 3 , 0 0 0 , 0 0 0 , 0 0 0 in 1921.
Factory employ
ment fell over 30 pe r c e n t d u r i n g this period, and factory p a y
rolls fell n e a r l y 50 percent#
We do not w a n t to repeat that p e r f o r m a n c e #
W e 'do not have
to.
O u r d u t y is to see that these same tragic events do not
h a ppen this time.
W e cannot a f f o r d to hav e h a l f a m i l l i o n
families lose t h e i r farms in the a f t e r m a t h of a n o t h e r inflation#
We cannot afford to have 2 0 ,000 b a n k r u p t c i e s a y e a r be c a u s e
prices are first in f l a t e d a n d then collapse#
Tha t is w h y It
is n e c e s s a r y to extend price control at this tiftie# W e mus t
not repeat the m i s t a k e we m a d e a f t e r the last war.
4
But I wan t to emphasize e q u a l l y str o n g l y that the e x t e n
sion of OPA is only temporary.
There is no basis for the fear
that p r i c e control of the sort e x e r c i s e d by OPA will b e c o m e
part of o u r pe r m a n e n t e c o nomic structure.
The pr o b l e m s w i t h
w h i c h OPA is n o w d e a l i n g are caused by the t r a n s i t i o n f r o m
a w a r t i m e to a p e a c e t i m e economy.
At the same time that I told y o u r Committee, in the S p r i n g
of 1944, that a o n e - y e a r "extension of price control after the
w ar w o u l d p r o b a b l y n o t be e n o u g h to solve our t r a n s i t i o n p r o b
lems, I als o a s s u r e d y o u that OPA w o u l d n ot b e c o m e a per m a n e n t
part of our economy.
That statement still holds.
Y o u do not
wan t it, and I do n o t want it.
The P r e s i d e n t does not want
it.
We have b e e n t r ying all a l o n g to get rid of price controls
as soon as it is p o s s i b l e to do so w i t h o u t inflation.
But we
must be patient.
W e cannot gamble w i t h the f u t u r e of the
A m e r i c a n people •
T h e p r o blems w h i c h the OPA has to m e e t are t e m p o r a r y in
characterc
W e are d e a l i n g
with these pr o b l e m s in the one w a y
that w i l l f i n ally solve t h e m -- by production.. T he basic i n
flationary p r e ssures had their o r igin in the c o m p e l l i n g n e
cessity of d e v o t i n g h a l f of our p r o d u c t i o n to w a r pu r p o s e s for
n e a r l y four years.
T he w a r ended onl y eight m o n t h s ago.
In
these few m o n t h s since VJ-Day we have reached a level of c i v i l
ian p r o d u c t i o n n e v e r b e f o r e e q u a l l e d in this country.
And this
s t r e a m of p r o d u c t i o n is s t e a d i l y r i s i n g d a y by day*
Some people have a s ked w h e r e the p r o d u c t i o n is going.
R e tail sales in this country in the first q u a r t e r of 1946 were
at a n annual rate of $89,.500,000,000 -- 60 pe r c e n t m o r e in
d o l l a r value and 22 p e r c e n t m o r e in volume than 1941.
When
y o u exclude the d u r a b l e g o o d s w h i c h are only b e g i n n i n g to come
on the market, the increase in d o l l a r value of retail sales
is mor e than 85 percent and the increase in ph y s i c a l volume
m o r e t h a n 40 percent.
Of course, t h e r e is a sc a r c i t y of m a n y goods, d e s p i t e the
r e cord volume of reta i l sales.
T h a t ’s b e c a u s e the public is
e a r n i n g m o r e m o n e y t h a n e v e r b e f o r e in p e a c e t i m e and w a n t s to
consume m ore than ever before.
Folks w h o n e v e r had a p r o p e r
diet are b u y i n g m e a t and m i l k and eggs.
Folks w h o n e v e r could
a f ford n i c e clothes a n d stockings are b u y i n g —
or t r y i n g to
buy —
suits and dr e s s e s and ny l o n s .
I t h ink i t ’s all to the
g o o d to see this g r e a t d e m a n d • We can p r o d u c e e n o u g h
to m e e t
it.
B ut it will take time, p a r t i c u l a r l y b e c a u s e the public
•has b e e n short of t h e s e goods for five years, and b e c a u s e we
are ^ust r e t u r n i n g to pea c e t i m e prod u c t i o n .
5
Some of the goods produced are not g o ing to consumers
right now.
T h e y are g o i n g into tools and m a c h i n e s and w o r k i n g
stocks for n e w and i n c r eased p e a c e t i m e p r o d u ction.
This is
e s p e c i a l l y true of the du r a b l e goods.
T h a t is one r e a s o n the
d a n g e r of i n f l a t i o n has not passed.
It will not pass u n til we
have finished the r e c o n v e r s i o n of p r o d u c t i o n and filled the
pipe line t h r o u g h w h i c h goods flow fro m the p r o d u c e r to the
consumer*
N ot u n t i l there is a full flow of goods a v a i lable
o: sale to consumers can we s a f e l y d i s p e n s e w i t h p r ice controls
That will p r o b a b l y take a n o t h e r year.
The o t her side of this return of our e c o n o m y to pea c e t i m e
p r o d u c t i o n - the side w i t h w h i c h I a m p a r t i c u l a r l y c o n c e r n e d as
S e c r e t a r y of the T r e a s u r y - is that the G o v e r n m e n t is m o v i n g
r a p i d l y toward a b a l a n c e d budget.
W e are red u c i n g G o v e r n m e n t
e x p e n d i t u r e s and p a y i n g off G o v e r n m e n t debt.
Our fiscal p o l i c y
is a n I m p o r t a n t part of the p r o g r a m to fight inflation.
The total e x p e n d i t u r e s of the Federal G o v e r n m e n t in April
of last y ear a m o u n t e d ■to $8,000,000,000.
This April they were
$ 4 , 2 0 0 , 0 0 0 , 0 0 0 , a s h r i nkage of n e a r l y 50 percent.
This rapid
d e c r e a s e w ill c o n tinue until we are on a pea c e t i m e basis.
In the meantime, revenues h a v e h e l d u p r e m a r k a b l y well.
The reason for this is - as the P r e s i d e n t has said - ” . • • .
we are well on the h i g h r o a d to full pea c e t i m e p r o d u c t i o n . ”
The net receipts of the U n i t e d States G o v e r n m e n t for the m o n t h
o f M a r c h - the last m a j o r tax m o n t h - a m o u n t e d to $5,700,000,000,
a decline f r o m the same m o n t h last y e a r of only about 17 p e r cent
As a r e sult of t h e s e r a p i d l y d e c l i n i n g expen d i t u r e s and
w e l l - m a i n t a i n e d receipts, the T r e a s u r y showed a surplus of r e
ceipts in e a c h of the m o n t h s of F e b r u a r y and March.
There will
be some net d e ficit d u r i n g the r e m a i n d e r of this fiscal year;
but the b u d g e t a r y o u t l o o k for 1947 is v e r y good.
In the past
two months, we have r e d uced the publ i c debt b y $ 7 , 0 0 0 , 0 0 0 , 0 0 0
from surplus funds in the T r e asury; and this r e d u c t i o n wil l
c o n tinue in an o r d e r l y w a y as r a p i d l y as our finances permit.
In m e e t i n g m a t u r i n g o b l i g ations, we have b e e n p a r t i c u
l a r l y co n c e r n e d to p a y of f the s e c u rities held by the banks.
The o n l y n e w securities i s s u e d since the V i c t o r y L o a n Drive
have b e e n savings b o nds and tax savings notes,
We have c o n
tinued to press the s ale of savings bonds b e c a u s e the y are
one of the best ways to fight inflation.
6
The T r e a s u r y is g o i n g to c o n tinue to sell savings "bonds
to the people.
W h e n we ask the people to put their savings
into these bonds, we must a lso give t h e m the a s s u r a n c e that
t h e i r savings wil l have 100 cents of b u y i n g p o wer f or every
dollar.
We m ust and wil l k e e p f a i t h w i t h the b o n d h o l d e r s who
have put t h e i r trust in the G o v e r n m e n t .
The bonds the y b uy
and hold h elp keep d o w n inflation.
T h e y are d o i n g their part
in the fight.
We m u s t do ours.
W e m u s t e x t e n d the Price
C o n trol Act, and we m u s t extend it w i t h o u t cri p p l i n g a m e n d
ments •
I
have great f a i t h in the p r a c t i c a l c o m m o n sense of our
people.
T h e y r e s p o n d e d t h r o u g h o u t the w a r to e v ery a p peal for
more production, more taxes and m o r e saving.
The w o r k e r s in
the factories and farms, and the m e n and w o m e n in the fighting
forces saved a v ery large part of their incomes.
T h e y are
saving now.
These savings are part of the g r eat b a c k l o g of
demand that c an kee p A m e r i c a n p r o d u c t i o n going.
W h a t we do on price control d u r i n g the next yea r will
d e t e r m i n e w h e t h e r this g r eat b a c k l o g of d e m a n d will b r i n g p r o s
p e r i t y or inflation.
If we k e e p price controls a little l o n g e r and k e e p t h e m r e a l l y e f f e c t i v e - the a c c u m u l a t e d savings of the
public can result in a su s t a i n e d dema n d for houses, automobiles,
r e f r i g e r a t o r s and other goods for m a n y years to come.
B u t if
we remove price controls too soon, these same savings will be
u s e d to b id up prices before goods have b e e n p r o d u c e d to m a t c h
the demand.
This i n f l a t i o n a r y process can have o nly one r e
sult:
the d e s t r u c t i o n of the savings of our people and, in
the end, a d i s a s t r o u s d epression.
R i sing prices will hit a lot of p e o p l e hard.
No Se n a t o r
needs to be told h ow q u i c k l y eve n a slow rise, in prices eats
into a fixed income.
There are m i l l i o n s of people in this
p o s i t i o n - school teachers and w h i t e collar w o r k e r s w h ose wages
rise little and late; old people w h o after a lifetime of w o r k
live in m o d e s t reti r e m e n t on their l i m i t e d savings; d i s a b l e d
veterans, and the w i d o w s and orphans of our fight i n g m e n who
depend
on t h e i r small p e n sions to k eep t h e m going.
T h ese are
the folks who feel i n f l a t i o n first and most.
L e t ’s make no m i s t a k e a b o u t it.
In the end, e v e r y b o d y
suffers f rom inflation.
T h a t ’s b e c a u s e all of us have a stake
in an e c o n o m y that works, an e c o n o m y that is stable.
Infla
tion n o w m e a n s d e f l ation later; and d e f l a t i o n m e ans d epression.
E v e r y worker, every farmer and e v e r y b u s i n e s s m a n suffers from
d e p r e ssion.
He suffers in u n e m p l o y m e n t and in l o w e r pay;
he
suffers in u n s a l a b l e surpluses and in u n r e m u n e r a t i v e prices;
he suffers in d e c r e a s e d p r o d u c t i o n and in u n p r o f i t a b l e business.
- 7 -
The d a n g e r of inflation is far g r e a t e r t o d a y than it was
in time of war.
This is b e c a u s e so m a n y people t h ink that the
d a nger has c o m p l e t e l y passed.
We have n e a r l y w o n the batt l e
of p e a c e t i m e p r o d u c t i o n and reconversion, just as we w o n the
battle of p r o d u c t i o n for war*
W e must not lose the fruits of
that v i c t o r y n ow
b y ruinous i n f l a t i o n w h i c h can only end in
d e p r e s s i o n * u n e m p l o y m e n t and economic stagnation.
Above all,
let us k e e p f a i t h w i t h the A m e r i c a n peop l e w h o fought and
worked to prese r v e a sound and strong America.
0O 0
THEASURT DEPARTíffiKT
Washington
F08 RELEASE, KORNIKO HKWSPAPERS,
Tuesday, May 7, 1?1*6.
Press Service
The Secretar^ of the Tre&sury announced last evening that the tendera for
$1,300,000,000, or thereabouts, of 91-day Treasuiy bilis te be dated May 9 and to mature
Auguat 8, 19li6, ehich mere offered en May 3, 192*6, were oponed et tbe Federal Reserve
Banks on May 6.
Tbe detalle of this issue are as folios*<
Total «ç<plied for * $1,961,01*8,000
Total aceepied
- 1,308,22*2,000
Average prise
(ineludes $2*2,1*73,000 enterad cm a fixed-price
basis at 99*90$ and aceepied in full)
- 99*90$/ Equivalent rate of discount approtx. 0.375Í per annum
Range of aocepted competitivo bidet
Higb
- 99*908 Equivalent rate of discount approx. 0.362$ per annum
lem
- 99*905
*
*
»
*
»
0.376* «
•
(62* percent of tbe aaount bid for at tbe low prise was aceepted)
Federal Reserve
District
Total
Applied for
Boston
Mee Tork
Philadelphia
Cleveland
$
7 ,520,000
21,020,000
5,252,000
963,610.,000
$2,lit?,000
15,58U, 000
8,695*000
9.717.000
283,393,000
9.1167.000
18k,393,000
1,2*62*,853,000
76, 665,000
RighBMHld
Atlanta
Chicago
St, louis
Minneapolis
Sansas City
5.125.000
il*,060,000
18,905,000
Billas
San Francisco
TOTAL
Total
Acœpted
I
T, 831,000
U, 225,000
1 0 , 1*60,000
10,660,000
16,025,000
8.500.000
tejías,«»
3o,n5,ooo
*1,961,01*3,000
*1 ,308 ,21*2,000
TREASURY DEPARTMENT
Washington
FOR RELEASE,. M O R N I N G NEWS P A P E R S ,
Tuesday, M ay 7, 1946_____________
Press Service
No* V-317
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 tender s for $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 -day
T r e a s u r y bills to be d a ted M a y 9 and to m a t u r e August 8, 1946,
w h i c h were o f f e r e d on M a y 3, 1946, w e r e open e d at the Federal
Reserve Banks on May 6.
The d e tails
of this
issue
are as follows:
Total a p p l i e d for - $ 1 , 9 6 1 , 0 4 8 , 0 0 0
Total accepted
~
1,308,242,000
A v erage price
- 99.905,/ E q u i v a l e n t
(includes $ 4 2 , 4 7 3 , 0 0 0 e n t ere d
on a f i x e d - p r i c e basis at
99.9 0 5 and a c c e p t e d in full)
rate of d i s c o u n t approx.
0 . 3 7 5 % per a n n u m
Range of a c c e p t e d comp e t i t i v e bids:
H i g h - 9 9 .908 E q u i v a l e n t
Low
- 99.905
"
’
(64 pe r c e n t
of the
rate
"
amount bid
of d i s c o u n t approx.
"
”
n
0 . 3 6 4 % per a n n u m
0.376%
M
n
for at the low price was accepted)
Total
Accepted
Total
A p p l i e d For
Federal Re s e r v e
District
$
Boston
New York
Philadelphia
Cleveland
Ri c h m o n d
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
D a llas
San Francisco
TOTAL
7,520,000
1,464,853,000
76.665.000
21.020.000
8.695.000
9.717.000
283,393,000
5.125.000
14.060.000
18.905.000
10.660.000
40,435,000
$ 1,961,048,000
$
5, 2 5 2 , 0 0 0
963.641.000
52.149.000
15.584.000
7 . 8 3 1.000
9.467.000
184.393.000
4.225.000
10.460.000
16.025.000
8.500.000
30.715.000
$ 1,308,242,000
W H E N TH I S R E L E A S E H A S B E E N M I M E O G R A P H E D ,
P L E A S E F O R WARD 8 COPIES T O R O O M i|03, W I L K I N S BLDG.
U ^
eliminary figures
{consumption daring
Lows:
Country of Production
Quantity in Pounds
As of April 27, 19H6
Signatory Countries:
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
8 3 0 .9 5 1 .0 5 u
395.908.88U
1 7 ,7 1 2 .3 2 5
Signatory Countries:
22.72U.9U5
2k2
16.1U U .I83
9 , 092.857
29.2U 2.8a7
U9.266.5U6
1 5 ,2 7 0 ,1 8 6
5 ,0 7 6 ,8 2 1
U l,8U i|.,029
11 . 969,736
2 , 383,232
30.36U.US5
TOTAL
1^77,952.352
! OR IMMEDIATE RELEASE
May 7. 19*4-6
The Bureau of Customs announced today preliminary figures
showing the quantities of coffee entered for consumption during
the period commencing October 1, 19^5. as follows:
Country of Production
Quantity in Pounds
As of April 27, 19^6
Signatory Countries:
830.951,05^
395.908.g8H
17 .712,325
2H2
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
l6 .lH H .l8 3
9 . 092.857
29.2H 2.827
H9.266.5H6
1 5 ,2 7 0 ,1 8 6
5 ,0 7 6 ,8 2 1
H l,8 l* ,0 2 9
1 1 ,9 6 9 ,7 3 6
2 . 383,232
30.36H.H85
Non-31gnatory Countries:
22 , 72H ,9H5
TOTH
1 .H 77 . 952.352
TREASURY DEPARTMENT
W a s h in g t o n
FOR IM M ED IATE R ELEA SE
P r e s s S e r v ic e
No. V -3 18
Thursday, May 9» 1946
The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s
s h o w in g t h e q u a n t i t i e s o f c o f f e e e n t e r e d f o r c o n s u m p t io n
d u r in g t h e p e r i o d co m m e n cin g O c t o b e r 1 , 1 9 4 5 ? a s f o l l o w s :
Q u a n t it y in P o unds
A s o f A p r i l 2 7? 1 9 4 6
C o u n t r y o f P r o d u c t io n
S ig n a t o r y C o u n t r ie s :
8 3 0 ,9 5 1 ,0 5 4
3 9 5 ,9 0 8 ,8 8 4
1 7 ', 7 1 2 ,3 2 5 242
16,144,183
9,092,857
29,242,827
49,266,546
B r a z il
C o lo m b ia
C o s ta R ic a
C uba
D o m in ic a n R e p u b l i c
Ecuador
E l S a lv a d o r
G u a te m a la
H a it i
H o n d u ra s
M e x ic o
N ic a r a g u a
P e ru
V e n e z u e la
,
15 270,186
5 , 076,821
41,844,029
11,969,736
2,383,232
30,364,485
N o n - S ig n a t o r y C o u n t r i e s :
22,724,945
TOTAL
1,477,952,
■
V
■WHEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM 1*03, WILKINS BLDG.
figures showing the
awn from warehouse, for
President’s proclamation
nations of April 13, 1942,
9, 1945, as follows:
Country
of
Origin
iEstablished
: Quota
(Bushels)
Canada
795,000
—
China
Hungary
Hong Kong
Japan
100
United Kingdom
Australia
100
Germany
Syria
100
—
New Zealand
Chile
Netherlands
ÌQ&
Argentina
2,000
Italy
100
Cuba
1,000
France
—
Greece
100
Mexi co
.*.
Panama
Uruguay
Poland and Danzig
Sweden
A
Yugoslavia
Norway
Canary Islands
Rumania
1,000
Guat emala
100
100
Brazil
Union of Soviet
Socialist Republics \ 100
100
Belgium
800,000
? Imports
:May 29, 1945, to
27, 19k6
(Bushels)
79U,U26
- •
.-
-
N-
—
-
Wheat flour, semolina,,
crushed or cracked
:
wheat, and similar
:
wheat products
Imports
X Established
May 29, 1 9 4 5 ,
i Quota
i
toApr. 27. 19li6
(Pounds) (Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
—
—
—
-
—
79i*,lt26
o0o<
4,000,000
1,323,176
-
-V,
—
—
23U
—
-—
—
—
•. m
-
—
m .
MS "*
/ "
i1 ,,
1,323,1*10
FOR IMMEDIATE RELEASE,
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour entered, or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May £8, 1941, as modified by the President’s proclamations of April 13, 1942,
and Aprfil 29, 1943, for the 12 months .commencing May 29, 1945, as follows:
3ra|||g|p m 4w; x |
Wheat
Country
of
Imports
Established ?
Origin
Quota
:May 29, 1945, to
27 f 19li6
(Bushela)
(Bushels)
Canada
795,000
China
Hungary
Hong Kong
—
Japan
100
United Kingdom
Australia
100
Germany
Syria
100
—
New Zealand
Chile
100»
Netherlands
Argentina
2,000
100
Italy
Cuba
1,000
Prance
—
Greece
100
Mexi co
.A
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
1,000
Rumania
100
Guat emala
100
Brazil
Union of Soviet
Socialist Republics 1 100
100
Belgium
800,000
79h,k26
¡¡g '
~
—
—
— •
■—
-
—
—
—
—
—
Wheat flour, semolina,
crushed dr cracked
wheat, and similar
wheat products
Imports
Established :
: May 29, 1945,
Quota
t toApr, 27, I2k6
(Pounds)
(Pounds)
3,815,000
24,000
13,000
13,000
8,000
75,000
1,000
5,000
5,000
1,000
1,000
1,000
14,000
2,000
12,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,323,176
—
—
**
23U
**
—
—
•—
**
—
*•
***
**
*%
i£
’
79li.lj.26
o0o<
—
4,000,000
1,32341°
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Thursday, May 9, 1946.
Press Service
No* ¥-319
The Bureau of Customs announced today preliminary figures showing the
quantities of wheat and wheat flour enteredo or withdrawn from warehouse, for
consumption under the import quotas established in the President’s proclamation
of May 28, 1941* as modified by the President’s proclamations of April 13, 1942,
and April 29, 1943* for the 12 months commencing May 29* 1945* as follows:
Wheat
Country
of
Origin
:
:
5Established :
Imports
:
Quota
: May 29* 1945* to
♦
• April 27, 1946
(Bushels)
(Bushels)
Canada
China
Hungary
Hong Kong
Japan
United Kingdom
Australia,
Germany
Syria
New Zealand
Chile
Netherlands
Argentina
Italy
Cuba
France
Greece
Mexico
Panama
Uruguay
Poland and Danzig
Sweden
Yugoslavia
Norway
Canary Islands
Rumania
Guatemala
Brazil
Union of Soviet
Socialist Republics
Belgium
795*000
~r
• _
100
—
100
100
m,426
—
-
m
w*
100
2,000
100
—
—
—
Wheat flour, semolina*
crushed or cracked
wheat, and similar
wheat products'
Imports
Established :
Quota
: May 29, 1945* to
: April 27, 1946.
• (Pounds)
(Pounds)
3,815*000
24,000
13*000
13* 000
8*000
75*000
1, 000
5* 000
5*000
1,000
1* 000
1,000
14*000
2,000
12,000
1,000
1,000
1,000
1,000
1, 000
1,000
1,000
1,000
1,000
1, 000
—
-f
—p
1,323,176
~
234
w
—■
-
1,000
—
100
1,000
100
100
—
—
-
100
100
—
—
—
• —
—
800-, 000
794* 426
4,000,000
1*323*410
-oGo-
—
—
—
—
'-
FOREIGN FUNDS CONTROL
To:
(1) IHa ,
y-ÿ’ù'8
( 2)
( 3)
( Room)
(Bldg.)
( Room)
(Bldg. )
( R o o m)
(Bldg.)
PAKFMENT
ton
Press Service
No. V-320
I
^ L ^ O lAJl£1
A4~<UA4LAi~<*JZ.
today that Czechoslovakia and
3t of countries whose blocked
.1 ¿ u /
ertification procedure of General
C Czechoslovakia and the Institut
been designated by the Czechoslovak
krely, as the certifying agents under
i- £ ~ ^ ¥
( S^AtA^fcc&Jl
, ^
w
2l
Ho 1. Bell
From:.'..........
(Dat e )
( Ro o m)
(Bldg. )
flailar to those written in connection
previously named in General License
Minister of Finance, and Mr. Dupong,
lister of Finance, have advised
i transfers of funds to the United
property in their countries belongt>e treated as favorably as that of
tes of the letters are available at
|c, Chicago and San Francisco.
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS
Friday. April 26. 19A6
Press Service
No. V-320
Secretary Vinson announced today that Czechoslovakia and
Luxembourg have been added to the list of countries whose blocked
accounts may be released under the certification procedure of General
License No. 95* The National Bank of Czechoslovakia and the Institut
Belgo-Luxembourge ois du Change have been designated by the Czechoslovak
and Luxembourg Governments, respectively, as the certifying agents under
the license*
In exchanges of letters similar to those written in connection
with the defrosting of the countries previously named in General License
No. 95, Dr. Srobar, the Czechoslovak Minister of Finance, and Mr. Dupong,
the Luxembourg Prime Minister and Minister of Finance, have advised
Secretary Vinson that restrictions on transfers of funds to the United
States will be liberalized and that property in their countries belong
ing to United States nationals will be treated as favorably as that of
nationals of any other country. Copies of the letters are available at
the Federal Reserve Banks of New York, Chicago and San Francisco.
TREASURY DEPARTMENT
Washington
FOR R E L E A S E , M O R N I N G N E W S P A P E R S
Friday, A p ril 26, 1946
Press S e rvice
No. V - 3 2 0
S e c r e t a r y Vinson a n n o u n c e d t o d a y that C z e c h o s l o v a k i a and
L u x e m b o u r g have b e e n a d ded to the list of countries whose
b l o c k e d a c c ounts m a y be r e l e a s e d u n d e r the c e r t i f i c a t i o n pro^
cedure o f General L i c e n s e No.
C z e c h o s l o v a k i a and the
95.
The N a t i o n a l B a n k of
Institut B e l g o —L u x e m b o u r g e o i s du
Chan g e have b e e n d e s i g n a t e d b y the C z e c h o s l o v a k and L u x e m b o u r g
G o v e r nments,
respectively,
as the
c e r t i f y i n g agents u n d e r the
license.
In exc h a n g e s of letters
similar to those w r i t t e n
n e c t i o n w i t h the d e f r o s t i n g of the
in General L i c e n s e No.
of Finance,
a n d Mr. Dupong,
M i n i s t e r of Finance,
tions
95, Dr.
on transfers
in c o n
countries p r e v i o u s l y n a m e d
Srobar,
the C z e c h o s l o v a k M i n i s t e r
t he1 L u x e m b o u r g Prime M i n i s t e r and
have-advised Secretary
Vinson that r e s t r i c
of funds to the U n i t e d States wil l be l i b
e r a l i z e d and that p r o p e r t y in t h e i r c o u n tries b e l o n g i n g to
U n i t e d States n a t i o n a l s wil l be t r e a t e d as f a v o r a b l y as that,
of n a t i o n a l s
available
of any o t h e r country.
Copies
at the Federal Reserve Banks
and S a n Francisco.
oOo
of the letters are
of N e w York,
Chicago
FOR IMMEDIATE RELEASE
May
19k6__________
y ^
3
<2 /
y figures showing the
imitations provided for
pa periods to April 27,
j Unit
:Imports as
t of
j of April 27,
¡y”¡Quantity : 19h6
1HHEH THIS RELEASE HAS BEEN MIMEOGRAPHED,
PEEASE TORWARD 6 COPIES TO ROOM W>3, WILKINS BLDG.
V
p
0
Gallon
3,232
0
Gallon
729
1/
u
o
j.»u
u
A
1
UShite or Irish potatoes:
certified seed
other
IBäf
12 months from
Sept. 15, 19ii5
Cuban filler tobacco unstemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
¿ü,jöü,72u
Pound
90.000.
60.000.
000
000
16,361,627
Pound Quota filled
Pound
229,965
Pound
(Unstemmed Quota
22,000,000 equivalent) filled
Calendar Year
l,396,i|23
Square
525,1 &
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
Calendar Year
solids
1 ,500,000
Gallon
56,15S
17,500
7,500
Number
Number
7,722
51*8
Red cedar shingles
Silver or black foxes,
Month of
furs, and articles: Foxes April
valued under $250 each
Canada
and whole furs and skins Other than Canada
12 months from
Dec. 1, 19ii5
5,000
Piece
n
Piece plates
tt
550
Articles, other than piece
plates
»
500 Unit
1/ Quota increased per T.D. 5H 4.Ü8 .
0
0
Paws, heads or other
separated parts
vn
Tails
Pound
Pound
-
k90
-
62
3
FOR IMMEDIATE RELEASE
May %, 1?1|6
2
/
)
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided for
under trade agreements,, from the beginning of the quota periods to April 27,
I9I46, inclusive, as follows:
“
Commodity
5
' 7
: Unit
:Imports as
:____ Established Quota______ :
of
: of April 27,
:Period and Country: Quantity ¡Quantity :
19h6
Tühole Milk, fresh
or sour
Calendar Year
3,000,000
Gallon
3,232
Cream, fresh or sour
Calendar Year
1,500,000
Gallon
729
Fish, fresh or frozen
filleted, etc,, cod
haddock, hake, pollock,
cusk, and rosefish
Calendar Year
20,380,721*
Pound
16,361,627
90,000,000
60,000,000
Pound
Pound
Quota filled
229,965
-----------
— —
J
H9hite or Irish potatoes:
certified seed
other
1/
12 months from
Sept. 15, 19kS
Cuban filler tobacco un
stemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Pound
(Unstemmed Quota
filled
22,000,000 equivalent)
Calendar Year
1,396,1*23
Square
525 ,151*
Molasses and sugar sirups
containing soluble non
sugar solids equal to more
than 6% of total soluble
solids
Calendar Year
1,500,000
Gallon
56,155
17,^00
7,500
Number
Number
7,722
51*8
5,000
Piece
Red cedar shingles
Silver or black foxes,
Month of
furs, and articles: Foxes April
valued under $250 each
Canada
and whole furs and skins Other than Canada
Tails
Articles, other than piece
plates
it
550
n
500 Unit
1/ Quota increased per T.D. 51UU8.
0
0
Piece plates
tt
U\
Paws, heads or other
separated parts
12 months from
Dec. 1, 191*5
Pound
Pound
-
1*90
-
62
TREASURY DEPARTMENT
Washington
FDR IMMEDIATE RELEASE,
Thursday, May 9> 1546»
Press Service
No. V-321
The Bureau of Customs announced today preliminary figures showing the
imports for consumption of commodities within quota limitations provided for
under trade agreements, from the beginning of the quota periods to April 27,
194-6, inclusive, as follows:
'Commo.dity
9 Unit
: Imports as
:
Established Quota
:
of
:of April 27,
: Period and Cbuntry :Quantity :Quantity :
1946
Whole Milk, "fresh
or sour
Calendar Year
3, ooo,000
Gallon
Cream, fresh or sour
Calendar Year
1 , 500,000
Gallon
Fish, fresh or frozen
filleted, etc., cod
haddock, hake, pollock,
cusk, and rosefish
White or Irish potatoes:
certified seed
other
729.
*
1/
Calendar Year
20,380,724
Pound
16,361,627
12 months from
Sept. 15* 1945
90,000,000
60 ,0 0 0 ,0 0 0
Pound
Pound
Quota filled
229,965
22,000,000
Pound
(Unstemmed Quota
equivalent)
filled
Cuban filler tobacco unstemmed or stemmed (other
than cigarette leaf tobacco)
and scrap tobacco
Calendar Year
Red cedar shingles
3 5 232
Calendar Year
1 , 3 9 6 ,4 2 3
Square
525A 5 4
iolasses and sugar sirups
containing soluble nonsugar solids equal to more
than 6% of total soluble
solids
Calendar Year
1 , 500,000
Gallon
5 6 ,1 5 5
17,500
7,500
Number
Number
7,722
Silver or black foxes,
Month of
furs, and articles: Foxes
April
Canada
valued under 4250 each
and whole furs and skins Other than Canada
Tails
12 months from
Dec. 1, 1945
548
5,000
Piece
_
Paws, heads or other
separated parts
11
500
Pound
490
Piece plates
11
550
Pound
-
Articles, other than piece
plates
11
0
0
37
Quota increased per T. D. 51448»
Unit
62
-
2
-
COTTON CARD STRIPS made from. cottons having a-staple of less than 1— 3/l6 inches
in length, COMBER WASTE, .LAP WASTE, SLIVER WASTE, ADD ROVING WASTE, WHETHER
. OR EOT MANUFACTURED OR OTHERWISE ADVANCED IE VALUE. Annual quotas commencing
September 20, by Countries of Origin:
:
Total quota, provided, however, that not more than 33-1/3 percent of the quotas
shall be filled by cotton wastes other than comber wastes made from cottons
of- L-3/16 inches or mope in staple length in the case of the following
countries: United Kingdom,. France, Netherlands, Switzerland, Belgium,Germany, and Italy:
(in Pounds)
Country of Origin :
United Kingdom.....
Canada..............
France.
British India.f.,...
Netherlands.........
Switzerland. ........
Belgium*...... .
Japan...............
China...... .... .
Egypt, w .......................
Cuba................. ...
Germany......... ...
Italy..... ...
TOTALS
l/
: ESTABLISHED : IMPORTS
Established : TOTAL IMPORTS
33-1/7$ of : Sept. 20, 1945
Sept.
20,.
194
5
;
TOTAL' QUOTA ;
toApr* 21, 19h6 ? To tal Quo ta ; to Apr. 21, 1/
—
1966—
4,323,457
1,441,152
—
. .
.
mm
239,690
m
m
227,420 ..75.,807. •
. .
69,627
'— .
<
69,627
—
.68,240 .
.22,747. ..
- '
•44,388 , • ..... . .
’•»
.14., 79 6.
■ — :
38,559 •- i.
.12,853. .
î
341,535
- 1t
—
17,322
—
—■
8,135 •
i 6,544
—..
mm
76,329 .25,443. ..
—
«« 21,263
7,088 .
5,482,509
69,621
Included in total imports, column 2.
- 0O 0-
1, 599,886
'
V m IMMEDIATE RELEASE
r ^ . I9k6__________
y_
.■ The Bureau of Customs, ¿announced today .that preliminary reports from the
collectors' of/pustoms sho>r.imports. of bott.Oh .'¿md.--dotton waste •changeable’ to the
import auotas established" by.the President.*s proclamations., of.I.September 5, 1939,
as amended "by the proclamations of December 19,. 1940, March 31, 1942,and June
29, 1942, during the period September 20, 1945, to April 27, 191*6.
COTTQ1T HAVIPC A STAPLE,' OP LESS THAN 1-11/16 INCHES (OTHER 'THAN .HARSH- OR 'ROUGH
COTTON OP LESS THAN 3/.4 INCH IN STAPLE LENGTH AND CHIEFLY 'USED: IN.THE diANTTFACI[URE OP BLANKETS AN£ BLANKETING, AND OTHER THAN LLNTERS);-'vAnnual quotas
commencing September 20, by Countries of Origin:
: r. :■ ,v »wvh
.(In Pounds)
S tapie length l-l/8a or mb re
Stapie ;-length le ss
; than 1-1/8" •
■‘but- less. than I-II/.I6" .
' , Country jof
k
Imports 'Sept. Established':" Imports Sept.
Origin; . ■/ •’
Established; 20,* 194 & to,.:,
.Quo ta ___ 20., .1945».. to
Quo ta
April 27, 19H6 45,656,420 Apr* 27, 19l*6.
1*:
Tv
t"f *-■,fcfV 14'
¡
g
Egypt and the Anglo-* - 19,71i*,179 .!
- i •;W
-Egyptian Sudan. ...,..,
783, -816
-- •- •6,593,292
247,952
Peru....................
235,079
... . .■><
British India..
.
2,003,483 1,796,001
•k»i'••' ■'SL...
.Í -'V•
China.......... .. . . .
1,370,791
....
*.»‘■*■ •••
Mexico.......... *dv..... 8,883,259 8,883,259
618,723
Brazil,
.......100
618,723
gj
••« • ..... .... ....
Union of Soviet
..........
¿
')
- -* 475,124
Socialist Republics.,.
- • :•-•'
*........ m
5,203
Argentina...............
** *">
237
Haiti........ ,. ..,
9 -3 3 3
Honduras...... .
.....
Paraguay,............. ..
Colombia................
Iraq. .......... .
British East Africa..,..
Netherlands East Indies.
Barbados................
Other British Uest
Indies 1/ ..... .......
Nigeria..... ...........
Other British West
Africa 2 / ........ ....
Other French Africa.3/..
Algeria and Tunisia,..,.
...
-
-
21,321
5,377
-
-
16,004
689
-
-
—
1
-
—
-
14,516,882 11,537,062
1/
2/
3/
—
... —
—
c*4 hr/f'.fK;-■
752
871
124
195
2,240
71,388
-
45,656,420
26 ,3 0 7 ,5 7 2
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast and Nigeria.
Other than Algeria, Tunisia, and Madagascar,
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
Thursday. May 9. -1946'
Press Service
No. V-322
The Bureau of Customs announced today that preliminary reports from the
collectors of customs show imports of cotton and cotton waste chargeable to the
import quotas established by the President’s proclamations of September 5* 1939,
as amended by the proclamations of December 19, 1940, March 31, 1942, and June
29, 1942, during the period September 20, 1945, to April 27, 1946,
COTTON HAVING A STAPLE OF LESS THAN 1-11/16 INCHES (OTHER.THAN HARSH OR ROUGH
COTTON OF-LESS THAN 3/4 INCH IN STAPLE LENGTH AMD CHIEFLY USED IN THE MANU
FACTURE OF BLANKETS AND BLANKETING, AND OTHER THAN LINTERS). Annual quotas
commencing September 20, by Countries of Origin:
(in Pounds)
Country of
Origin
Staple length less
: Staple length 1-1/8" or more
than I-l/8H
:
but less than 1-11/16”
:Imports Sept. : Established : Imports Sept.
Established:20, 1945, to ;
Quota
: 20, 1945, to
Quota sApril 27, 1946: 45,656,420 : Apr, 27, 1946,
Egypt and the AngloEgyptian Sudan........
783,816
Peru, ................. .•.
247,952
British India.......... 2,003,483
China,............... . 1,370,791
Mexico.................. 8,883,259
Brazil............. „...
618,723
Union of Soviet
Socialist Republics*••
475,124
Argentina........... .
5,203
Haiti...................
237
Ecuador..... ...........
9,333
Honduras................
752
Paraguay...............
871
Colombia.... .
124
Iraq..... ..............
195
British East Afii ca.....
2,240
Netherlands East Indies.
71,388
Barbados................
■—
Other British West
Indies 1/............
21,321
Nigeria........ .......
5,377
Other British West
Africa 2/ •
16,004
Other French Africa 3/..
689
Algeria and Tunisia,.,..
<r
—
239,079
1,796,001
r-
r-
8,883,259
618,723
100-
—
—
—
rr
—
—
—
—
—
■-
r_
—
-
—
-*
-
—
»
1
14, 516, 882 11,537,062
1/
2/
3/
19,714,179
6,593,292
45,656,420
Other than Barbados, Bermuda, Jamaica, Trinidad, and Tobago.
Other than Gold Coast arid Nigeria.
Other than Algeria, Tunisia, arid Madagascar.
26,307,572
- 2 ~
COTTON CARD STRIPS made from cottons having a staple of less than-, 1^3/16 inches
in length, COMBER WASTE, LAP WASTE, SLIVER WASTE, AND ROVING WASTE, WHETHER
OR NOT MANUFACTURED OR OTHERWISE ADVANCED IN VALUE* Annual quotas commencing
September 20, by Countries of Origin:
Total quota, provided, however, that not more than 33“l/3 percent of the quotas
shall be filled by cotton wastes other than comber wastes made from cottons
of 1-3/16 inches or more in staple length in the case of the following
countries: United Kingdom, France, Netherlands, Switzerland, Belgium,
Germany, and Italy:
(in Pounds)
: ESTABLISHED
. : Established : TOTAL IMPORTS
Country of Origin. TOTAL QUOTA : Sept, 20, 1945, : 33-1/ "it of
to Apr* 27, 1946: Total Quota
United Kingdom, *»,
Canada* •••<>•«•»•••#
France,
British Indiae.••••
Netherlands!
Switzerland,
Belgium.
Jan an, *1..... .
China............. •
Egypt..... ..... .
Cuba,.............
Germany...........
Italy.,».........»
TOTALS
1/
4, 323,457
239,690
227>420
69,627
68,240
44.388
38,559
341,535
17,322
8,135
6,544
76,329
21,263
A
69,627
¥
-
5,402,509
69,627
Included in total imports, column 2.
-o0o~
1,441,152
—
75,807
22,747
14,796
12,853
—
-
: IMPORTS
: Sept. 20, 1945 ,
: to Apr. 27V:
: 1946, l/
—
—
—
**
•*
**
—
—
25,443
7,088
1,599,886
m
i*
—
—'
- 3 -
sold, redeemed or otherwise disposed of, and such bills are excluded from
consideration as capital assets.
Accordingly, the owner of Treasury bills
(other than life insurance companies) issued hereunder need include in his
income tax return only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the amount actually
received either upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. I4I 8, 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
-
Immediately after the closing hour, tenders will be opened at the Federal
Reserve Banks and Branches, following which public announcement trill be made
by the Secretary of the Treasury of the amount and price range of accepted
bids.
Those submitting tenders will be advised of the acceptance or rejection
thereof.
The Secretary of the Treasury expressly reserves the right to accept
or reject any or all tenders, in whole or in part, and his action in any such
respect shall be final.
Subject to these reservations, tenders for $200,000
or less from any one bidder at 99.90^ 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
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,
irtiether Federal or State, but shall be exempt from all taxation now or here
after 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 pur
poses 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
i|2 and 117 (a) (1) of the Internal Revenue Code, as amended by Section ll£ of
the Revenue Act of 19Ulj the amount of discount at which bills issued here
under are sold shall not be considered to accrue until such bills shall be
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS^,
Friday, May
- v 10, 19U6
---------------
The Secretary of the Treasury, by this public notice, invites tenders for
$ 1 «3Q0 «000.000 ) or thereabouts, of
91
-day Treasury bills, to be issued
on a discount basis under competitive and fixed-price bidding as hereinafter
provided.
The bills of this series Trill be dated
Trill mature
August^ 3^. 19k6
May 16, I9I46
3 ^'hen the face amount
, and
Trill be payable with-
They Trill 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).
out interest.
Tenders Trill be received at Federal Reserve Banks and Branches up to the
closing hour, two o'clock p.m., Eastern Standard time,
ftrnpr)fl-yt M^y^l1 t 1016
Tenders will not be -received at the Treasury Department, Washington.
Each
tender must be for an even multiple of $1,000, and the price offered must be
expressed on the basis of 100, with not more than three decimals, e. g., 99.925*
Fractions may not be used.
It is urged that tenders be made on the printed
forms and 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
xpress guaranty of payment by an incorporated bank or trust company.
TREASURY DEPARTMENT
Washington
D O R RELEASE, M O R N I N G N E W S P A P E R S
Friday, M a y 10, 1946
T h e Secretarjr of the Treasury, by this publ i c notibe,
invites tenders for $ 1 , 3 0 0 ,000,000, or thereabouts, of 9 1 - d a y
T r e a s u r y bills, to be issued on a d i s c o u n t basis u n d e r c o m
p e t i t i v e a n d f i x e d - p r i c e bi d d i n g as h e r e i n a f t e r provided.
The bills of this series w i l l be d a t e d M a y 16, 1946, an d w i l l
m a t u r e A u g u s t 15, 1946, when the face a m o u n t w i l l be p a y a b l e
w i t h o u t interest.
T h e y w i l l be issued in b e a r e r f o r m only,
a nd in d e n o m i n a t i o n s of $1,000, $5,000, $10,000, $100,000,
$ 500,000 a n d $ 1 , 0 0 0 , 0 0 0 (maturity value)..
Tenders w i l l be r e c e i v e d a t F e d e r a l R e s e r v e Banks a n d
Bra n c h e s up to the c l o s i n g hour, two o ’c l o c k p.m., E a s t e r n
S t a n d a r d time, Monday, M a y 13, 1946.
Tenders w i l l n o t be r e
c e i v e d at the T r e a s u r y Department, W a s h i n g t o n ,
E a c h tend e r
m u s t be for an even m u l t i p l e of $1,000, a n d the price of f e r e d
m u s t be e x p r e s s e d on the basis of 100, w i t h n ot more than three
decimals, e* g,, 99*925*
F r a c t i o n s m ay not be used,
It is
u r g e d that tenders be made on the p r i n t e d f o r m s a n d f o r w a r d e d
in t he s p e c i a l envelopes w h i c h w i l l be s u p p l i e d by F e d e r a l
R e s e r v e Banks or Branches on a p p l i c a t i o n therefor.
Tenders w i l l be r e c e i v e d w i t h o u t d e p o s i t f r o m i n c o r p o r a t e d
banks and t r ust c o m p a n i e s ' a n d f r o m r e s p o n s i b l e an d r e c o g n i z e d
dealers in i n v e stment securities.
Tenders f r o m others m u s t be
a c c o m p a n i e d by p a y m e n t of 2 p e r c e n t of the fac e a m o u n t of
T r e a s u r y bills a p p l i e d for, unle s s the tenders are a c c o m p a n i e d
b y an express g u a r a n t y of p a y m e n t by an i n c o r p o r a t e d b a n k or
t r u s t company.
I m m e d i a t e l y a f t e r the closing h o u r , tenders w i l l be open e d
at the F e d e r a l R e s e r v e Banks a n d Branches, f o l l o w i n g w h i c h
p u blic a n n o u n c e m e n t w i l l be made b y the S e c r e t a r y of the
T r e a s u r y of the a m o u n t a n d price r a n g e of a c c e p t e d bids.
T h o se
s u b m i t t i n g tenders w i l l be a d v i s e d of the a c c e p t a n c e or r e
jection thereof.
The S e c r e t a r y of the T r e a s u r y e x p r e s s l y
r e s e r v e s the r i g h t to a c c e p t or r e j e c t a n y or a l l tenders, in
w h o l e or in part, and his action in a n y s u c h r e s p e c t s h a l l be
final.
S u b j e c t to these reservations, tenders for $ 2 0 0 , 0 0 0
or less f r o m a n y one b i d d e r at 99.905 e n t e r e d on a f i x e d - p r i c e
basis w i l l be a c c e p t e d in full.
P a y m e n t of a c c e p t e d tenders
a t the prices o f f ered m u s t be made or c o m p l e t e d at the F e d e r a l
R e s e r v e B a n k in cas h or other i m m e d i a t e l y a v a i l a b l e funds on
M a y 16, 1946,
The income d e r i v e d f r o m T r e a s u r y bills, w h e t h e r interest
or gain f r o m the sale or o t her d i s p o s i t i o n of the bills, shal l
n o t have a n y exemption, as such, a n d loss f r o m the sale or
V-323
(Over)
2
other d i s p o s i t i o n of T r e a s u r y bills s h a l l n o t have a n y s p ecial
treatment, as such, u n d e r f e d e r a l t ax A cts n ow or hereafter'
enacted.
The bills s h all be s u b j e c t to estate, inheritance,
gift, or o t her excise taxes, w h e t h e r f e d e r a l or State, but
shall be e x empt f r o m al l tax a t i o n n o w or h e r e a f t e r
i m posed on
the p r i n c i p a l or i n t e r e s t t h ereof by a n y State, or a n y of the
p o s s e s s i o n s of the U n i t e d States, or by a n y l o cal taxing a u t h
ority.
f o r pu r p o s e s of tax a t i o n the a m o u n t of d i s c o u n t at
w h i c h T r e a s u r y b i l l s are o r i g i n a l l y sold by the U n i t e d States
s h all be c o n s i d e r e d to be interest.
U n d e r Se c t i o n s 42 a nd 117
(a) (1) of the Internal R e v e n u e Code, as a m e n d e d by Section
115 of the R e v e n u e A c t of 1941, the a m o u n t of d i s c o u n t at
w h i c h bills issued h e r e u n d e r are sold s h all n o t be c o n s i d e r e d
to a c c r u e u n t i l s u c h bills s h a l l be sold, r e d e e m e d or. o t h e r
w i s e d i s p o s e d of, a nd s u c h bills are e x c l u d e d f r o m c o n s i d e r a t i o n
as ca p i t a l assets. ' A c c o rdingly, the owner of T r e a s u r y bills
(other than life i n s u rance c o m p a n i e s )) i s s u e d h e r e u n d e r n e e d
include in his income tax r e t u r n onl y the d i f f e r e n c e be t w e e n the
p r ice p a i d f or such' bills, w h e t h e r on o r i g i n a l issue or on s u b
s e q u e n t purchase, a n d the a m o u n t a c t u a l l y r e c e i v e d either upon
sale or r e d e m p t i o n .at m a t u r i t y duri n g the t a x a b l e year for
w h i c h the r e t u r n is made, as o r d i n a r y 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 E o ‘, 4 I B , a s ’ amended, a nd this
notice, p r e s c r i b e the terms of the T r e a s u r y bills a nd g o v e r n
the c o n d itions of t h eir issue,
C o pies of the c i r c u l a r m a y be
o b t a i n e d f r o m a n y f e d e r a l R e s e r v e B a n k or Branch.
TREASURT BEPARTMERT
Washington
tm
MIM.SB, M l
HEWSPAPSRS,
Tuesday* May 14» 191*6 >
Pres« Service
The Secretary of the Treasury announced last evening that the tenders for
$1,300,000,000* or thereabouts, of 91-day Treasury bills to be dated May 16 and to stature
August 1$, 191*6, which were offered on May 10, 191*6, were opened at the Federal Reserve
Banks on May 13.
The details of this Issue are ae follows s
Total applied for - $1,900,939,000
Total accepted
- 1,301,31*1,000
Average price
(Includes $1*0,866,000 entered on a fixed-pries
basis at 99*90$ and accepted In full)
- 99*90$/ Equivalent rate of discount approx« 0.37$$ per annum
Range of accepted competitive bids*
U
- 99.908 Equivalent rate of discount approx* 0.361*$ per annum
99*90$
•
•
»
•
*
0.376$ «
*
-
m
(66 percent of the amount bid for at the low price was accepted)
Federal Reserve
District
Total
Applied for
Total
Accepted
Boston
#
$
lew fork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
9,900,000
6 ,908,000
1,1*69,893,000
30.918.000
991.233.000
2k,798,000
12,3$$,000
ll*,061*,000
10,6$S,000
12,90$,000
270,2^1,000
$,2$$,000
,
.
2 49$,000
12,36k,000
9,$05,000
.
181 232.000
k,kO$,QO0
2,k9$,000
,
10 800,000
1 0 ,816,000
Kansas City
12 500.000
Balias
San Francisco
13,1)00,000
1)7*010*000
36,130,000
$1,900,939,000
$1,301,3kl,000
TOTAL
TREASURY DEPARTMENT
Washington
FOR RELEASE, M O R N I N G N EWSPAPERS,
Tuesday, Ma y 14, 194,6. __________
Press S e r vice
No, V-324
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 , 3 0 0 , 0 0 0 , 0 0 0 , or thereabouts, of 9 1 - d a y bills
to be d a ted May 16 and to m a t u r e A n g u s t 15 , 1946,' w h i c h were
o f f ered on M a y 10, 1946, wer e opened at the Federal R e s erve
Banks op M a y 1 3 v
The details
of this
issue are as follows
:
T o t a l a p plied for - $ 1 , 9 0 0 , 9 3 9 , 0 0 0
T o tal a c c e p t e d
1,301,341,000
A v e r a g e price
Range
(includes $ 4 0 , 8 6 6 , 0 0 0 entered
on a fixe d - p r i c e b a sis at
99,'905 and accept ed in full)
- 99*905 / E q u i v a l e n t rate of d i s c o u n t approx.
0,375% per annum
of a c c e p t e d c o m p etitive bids;
High
99*908 E q u i v a l e n t
Low
- 99.905
w
rate of discount approx.
"
tr
M ‘
’"
(66 percent o f the a m o u n t bid
Federal Reserve
District
0.364% per annum
0.376%
"
"
for at the low price was accepted)
Total
A p p l i e d For
Boston
New lork
Philadelphia
Cl e v e l a n d
Ri c h m o n d
At la n ta
Chicago
St* Louis
Minneapolis
"Kansas City
Da11a s
San Francisco
TOTAL
Total
Accepted
$
9,900,000
. 1,469,893,000
30.918.000
12.355.000
14.064.000
12.905.000
270,244,000
5.255.000
2.495.000
12.500.000
13.400.000
47.010.000
$
$1,900,939,000
$1,301,341,000
6 , 9 08,000
991 ,'233, 000
24.798.000
10.655.000
12.364.000
9.505.000
181,232,000
4.405.000
2.495.000
10.800.000
10,816,000
36,130,000
61
T h is i s a w o r ld in w h ic h a l l
c o u n t r ie s m u st s h a r e th e sam e d e s t i n y .
I t w i ll b e p ea ce and p r o s p e r ity fo r a l l ,
o r w a r an d d e p r e s s io n f o r a l l .
We c a n n o t
e s c a p e fr o m t h e s e p r o b le m s b y w ith d r a w in g
fro m t h e w o r ld .
P o l i t i c a l o r e c o n o m ic
I s o l a t i o n i s a n a n a c h r o n is m ; I t i s a
d a n g ero u s p o lic y b e ca u se I t I s u n r e a l.
T h e r e i s o n ly o n e w a y t o a s s u r e th e
s e c u r ity an d w e lfa r e o f t h i s c o u n tr y .
T h a t i s t o f a c e th w w o r ld * s p r o b le m s
a n d d e a l w i t h th e m i n c o o p e r a t i o n w i t h
o th e r c o u n tr ie s .
60
«*
I w a n t t o s t r e s s t h e im p o r ta n c e
o f p r o d u c t i o n a n d e m p lo y m e n t r i g h t
h e re a t hom e.
T h e U n ite d S t a t e s i s
t h e g r e a t e s t s i n g l e e c o n o m ic f o r c e i n
th e e n t ir e w o r ld .
The le v e l o f our
n a t i o n a l in c o m e i s t h e d e t e r m in a n t o f
w o r ld t r a d e .
I f w e m a in ta in p r o d u c tio n
a n d e m p lo y m e n t, w o r ld t r a d e w i l l
flo u r is h .
T h e g r e a te s t c o n tr ib u tio n
t h e U n ite d s t a t e s c a n m ic e t o t h e
p e a c e a n d p r o s p e r i t y o f t h e w o r ld i s
t o k e e p A m e r ic a s t r o n g a n d p r o s p e r o u s
an d th e a d v o c a te o f J u s tic e in th e
c o u n c il o f th e n a tio n s .
I f w e d o n o t rem ove th e ir r it a t io n s
a n d a l l e v i a t e t h e im p e d im e n ts t o t r a d e ,
we fe e d th e g r e e d y go d or w ar an d
la r g e ly n u llif y th e o th e r e ffo r t s w e
m ake to w a r d a s t a b l e e n d u r in g p e a c e .
a i t i f w e m e e t o u r p r o b le m s i n t h e
f ie ld s o f in te r n a tio n a l ex ch a n g e and
w o r ld t r a d e a n d b u i l d a s o u n d e c o n o m ic
o r d e r in th e s e v e r a l U n ite d N a tio n s
a n d in th e w o r ld , w e c r e a t e a n a tm o sp h e r e
C o n d u c iv e t o p e a c e .
A n d g o o d e c o n o m ic
r e la t io n s h ip s b e tw e e n n a tio n s c a n , in
th e m s e lv e s , g iv e u s m ore th a n a f ig h t in g
chance fo r la s tin g p ea ce .
58
The F in a n c ia l A greem en t w ith
E n g la n d i s a n e s s e n t i a l p a r t o f o u r
w h o le p r o g r a m o f i n t e r n a t i o n a l e c o n o m ic
c o o p e r a tio n .
T h is p rogram o f th e
U n ite d N a tio n s i s c o n c e r n e d w ith som e
o f t h e m o s t I m p o r ta n t p r o b le m s o f
every day life .
H ow w e m e e t t h e s e
p r o b le m s w i l l d e te r m in e i n l a r g e p a r t
w h e th e r t h e U n ite d S t a t e s a n d t h e w o r ld
w i l l a g a in g o th r o u g h d e v a s ta tin g
c y c le s o f w ar an d d e p r e s s io n o r w h e th e r
a t lo n g l a s t w e
r e a liz e th e h ope fo r
p ea ce and p r o s p e r ity .
* 57 *
T h e C om m erce D e p a r tm e n t e s t im a t e s
th a t a b o u t o n e -fo u r th o f th e p ro ce e d s
o f fo r e ig n lo a n s w i l l b e s p e n t on
su ch p r o d u c ts .
In th o s e c a se s
a llo c a t io n an d e x p o r t c o n tr o ls w i ll
p r e v e n t a n y u n d u e d r a in on o u r d o m e s tic
s u p p l y a n d a s s u r e t h e m in im u m e s s e n t i a l
•"-v
ÿI
/
!
n eed s o f o th e r c o u n tr ie s .
In th e en d th e w ay t o b e a t th e
I n f l a t i o n p r o b le m I s t o p r o d u c e e n o u g h
goods*
The F in a n c ia l A greem en t w ill
e n c o u r a g e p r o d u c tio n in t h i s c o u n tr y
a n d a b r o a d b y r e m o v in g t h e r e s t r i c t i o n s
w h ic h h am p er t r a d e .
5 6 mß-
T h e t o t a l am ount o f c r e d it to
E n g la n d u n d e r t h e F i n a n c i a l A g r e e m e n t
la l e s s t h a n o n e - h a l f o f o n e p e r c e n t
o f th e a g g r e g a te e x p e n d itu r e s in t h i s
c o u n tr y in th e n e x t f iv e y e a rs#
c o n s id e r a b le
A
p a rt o f th e c r e d it w ill
b e u se d in l a t e r y e a r s w h en t h e s u p p ly
p r o b le m i s l e s s a c u t e ,
som e o f t h e
c r e d i t w i l l u n d o u b te d ly b e u s e d f o r
g o o d s th a t a r e in a b u n d a n t s u p p ly .
I n e v i t a b l y , som e o f t h e c r e d i t w i l l
b e n eed ed fo r g o o d s th a t a r e in s c a r c e
s u p p ly .
T h ar© a r t
soae p e o p l e
who
r e c o g n is e t h a t i t i s i n th © i n t e r e s t
o f t h e U n ite d S t a t e s t o o f f e r E n g la n d
th e p rop osed c r e d it, b u t th e y fe a r
th a t th e c r e d it w ill ad d to in fla tio n a r y
p r e s s u r e s in t h i s c o u n try #
I am o u c h
c o n c e r n e d a b o u t t h e i n f l a t i o n p r o b le m #
I K n ow , fr o m f i r s t - h a n d e x p e r ie n c e , h ow
im p o r t a n t t h e i n f l a t i o n p r o b le m i s i n
th is c o u n try .
I b e lie v e th a t th e
c r e d it to B r ita in w ill n o t m a te r ia lly
in c r e a s e th e d a n g e r o f in f la t io n *
—
54
***
T h e In te r n a tio n a l B ank w i ll b e th e
p r in c ip a l a g e n c y to f a c i l i t a t e fo r e ig n
lo a n s o u t o f p r iv a te c a p it a l f o r
r e c o n s t r u c t io n a n d d e v e lo p m e n t*
In th e em ergen cy p e r io d , u n t il th e
I n te r n a tio n a l B ank I s in f u l l o p e r a tio n ,
th e E x p o r t-Im p o r t B an k w i l l m eet o n ly
th e m ost u r g e n t n e e d s fo r r e c o n s tr u c tio n
a id .
I t is th e p o lic y o f t h is G overn m en t
to m ake th e a g e n c ie s e s ta b lis h e d b y
th e U n ite d N a t io n s th e m ean s f o r
c o n tin u in g c o o p e r a tio n o n c u r r e n c y an d
in v e s tm e n t p r o b le m s , a n d t o l e a v e t o
th e s e in s t it u t io n s th e t a s k o f p r o v id in g
t h e f u n d s n e c e s s a r y t o Im p le m e n t t h i s
p rogram .
55
T h e I n t e r n a tio n a l M o n e ta ry Fun d
a g re e m e n t p e r m its th e c o n tin u e d
Im p o s itio n o f c e r t a in o f th e s e
r e s t r i c t i o n s f o r a s m uch a s 5 y e a r s ;
in th e F in a n c ia l A greem en t o f D ecem ber 6 ,
19 «#
th e B r itis h a g ree to th e ir rem oval
w it h in 1 y e a r fro m th e e f f e c t i v e d a te
o f th a t A g re e m e n t,
I t i s th e v ie w
o f t h e c o u n c i l t h a t tie B r i t i s h c a s e
I s u n iq u e an d w i l l n o t b e a p r e c e d e n t
f o r a lo a n to a n y o th e r c o u n tr y » *
O th e r c o u n t r ie s w i l l n e e d h e lp #
T h is h e lp * 1 1 1 b e a v a i l a b l e t o th e m
fro m t h e I n s t i t u t i o n s t h a t a r e now i n
o p e r a tio n .
The In te r n a tio n a l Fund w i ll
p r o v id e h e lp n e e d e d f o r c u r r e n c y
s ta b iliz a tio n .
N o o th e r c o u n tr y h a s th e sam e c r u c ia l
p o s it io n in w o r ld
t r a d e a s E n g la n d *
B e c a u se o f t h e w id e u s e o f th e p ou n d
s t e r l i n g I n w o r ld t r a d e , t h e l a r g e
p r o p o r t io n o f t h e w o r ld 's t r a d e w h ic h
i s c a r r ie d on b y th e c o u n tr ie s o f th e
B r i t i s h E m p ir e , a n d t h e e x tr e m e d e p e n d e n c e
o f E n g la n d u p o n im p o r t s , t h e f i n a n c i a l
and
c o m m e r c ia l p r a c t i c e s o f B r i t a i n a r e
o f u tm o s t s ig n if ic a n c e in d e te r m in in g
w h a t k in d o f w o r ld eco n o m y w e s h a l l h a v e *
The e a r ly r e a liz a tio n o f th e f u ll
o b je c tiv e s o f th e B r e tto n W oods p ro gra m ,
in c lu d in g th e e lim in a tio n o f e x ch a n g e
r e s t r i c t i o n s a n d o t h e r b a r r i e r s t o w o r ld
t r a d e a n d in v e s t m e n t , r e q u i r e s a n im m e d ia te
s o l u t i o n t o B r i t a i n 's f i n a n c i a l p r o b le m .
mm
W i*
"H ie a p p r o v a l o f t h e F i n a n c i a l A g r e e m e n t
b y c o n g r e s s w i l l a s s u r e t h e im p le m e n ta tio n
Ift
o f o u r YJhole in tern
atio n al e c o n o m i c
, jti
-
'
!.r.t
program *
y
lir e c r e d i t t o B r i t a i n c a n n o t b e a
p r e c e d e n t f o r a lo a n t o a n y o th e r
c o u n try .
T h e N a tio n a l A d v is o r y C o u n c il
on I n t e r n a tio n a l M o n e ta ry an d F in a n c ia l
P r o b le m s h a s I s s u e d a s t a t e m e n t o f o u r
f o r e i g n lo a n p o l i c y I n w h ic h t h i s i s
m ade c le a r .
I r e a d fro m t h a t r e p o r ts
"T h e p ro p o se d lo a n t o B r it a in ,
r e q u ir in g c o n g r e s s io n a l a u th o r iz a tio n ,
i s a s p e c i a l c a s e , b u t o n e w h ic h i s a n
i n t e g r a l p a r t o f t h e f o r e i g n e c o n o m ic
p ro g ra m o f t h i s G o v e rn m e n t.
f
m*
50 "
T h e r a t e o f in t e r e s t i s r e a s o n a b ly
c lo s e t o th e a v e r a g e c o s t o f m oney
to th e T re a su ry .
T h is p o in t w i l l b e a r e m p h a s is :
th e c r e d it i s o n ly
a p a rt o f th e
F in a n c ia l A g re e m e n t.
The purpose o f
th e F in a n c ia l A g re e m e n t i s t o e n a b le
E n g la n d t o p a r t i c i p a t e f u l l y i n o u r
i n t e r n a t i o n a l e c o n o m ic p r o g r a m .
The
f u l l p a r tic ip a tio n o f B r ita in in t h is
program i s n e c e s s a r y i f i t is to
becom e e f f e c t i v e .
® hen w e ta k e in t o c o n s id e r a t io n th e
c o m m itm e n ts w e r e c e i v e fr o m E n g la n d
on h er cu rren cy and tra d e p o lic ie s , i t
b e c o m e s c l e a r t h a t t h e A g r e e m e n t w o u ld
a m p ly r e p a y t h e A m e r ic a n p e o p le e v e n
I f n o in te r e s t w ere p a id .
A n d som e
w o u ld s a y w e w o u ld h a v e m ad e a g o o d
I n v e s tm e n t i f t h e w h o le sum w e r e a
g ift.
A s a m a tte r o f f a c t , th e in te r e s t
is s u b s ta n tia l.
I f th e c r e d it w ere u sed
in f i v e e q u a l a n n u a l a m o u n ts a n d a l l
i n t e r e s t p a y m e n ts w e r e m e t, t h e e f f e c t i v e
r a te o f in te r e s t u n d er th e F in a n c ia l
A g r e e m e n t w o u ld b e 1 .8 5 p e r c e n t , a n d o v e r
$ 2 .5 b i l l i o n o f i n t e r e s t w o u ld b e p a id .
I f s u c h a n e m e rg e n cy s it u a t io n d e v e lo p s
i t i s c le a r ly in th e in te r e s t o f th e
U n ite d S t a t e s t o a c c e p t t h e p r in c ip a l
a n d n o t t o f o r c e a d e f a u l t w h ic h w o u ld
h a v e s e r io u s c o n s e q u e n c e s t o t h e w o r ld
econom y.
n a tu r a lly , th e in te r e s t r a te is
l e s s th a n B r i t a i n w o u ld h a v e t o p a y
o n a s t r i c t l y c o m m e r c ia l lo a n o b t a in e d
fr e m i b a n k e r s .
T h e F in a n c ia l A g re e m e n t,
h o w e v e r , i s m uch m o re th a n a lo a n .
i s a n A g r e e m e n t o n t h e m a jo r a s p e c t s
o f f i n a n c i a l a n d c o m m e r c ia l p o l i c y .
It
- v? H one o f th e c r e d it ca n b e u se d fo r
p a y in g o f f th e b lo c k e d s t e r l i n g
b a la n c e s o r a n y o f B r i t a i n ’ s w a r tim e
d e b ts j th e s e o b lig a tio n s w ill h a ve to
b e m e t fro m o t h e r r e s o u r c e s *
Beginning in 1951* England will
repay the credit over a 50-year period,
with interest at 2 percent. The
principal of the credit must be repaid
without qualification* Under conditions
of severe depression in world trade,
the interest due in any given year may
be waived under objective standards
s t a te d in th e A g re e m e n t.
If congress approves, the
UMtod States Government will open
a line of credit of $5~5A billion in
favor of England* This credit can be
drawn on by England until December 31,
1951, to purchase goods and services
in the United states* It con also be
used by England for meeting the
transitional post-war deficit in her
current balance of payments, and for
helping raigland assume the obligations
of multilateral trade*
»
«
T h e s e s i x c o m m itm e n ts a r e
im p o r t a n t c o m m itm e n ts .
They rep resen t
a w h o le h e a r te d a d o p tio n o f t h e l e t t e r
a n d s p i r i t o f th e U n ite d N a tio n s
program fo r f a ir c u rre n c y an d tr a d e
p r a c tic e s .
To c a r r y o u t th e se
c o m m itm e n ts S i g l a n d w i l l n e e d h e l p
d u r in g t h e n e x t fe w y e a r s .
s h e w i l l g e t fr o m t h e c r e d i t
T h a t h e lp
under
th e F in a n c ia l A greem en t w ith th e
U n ite d S t a t e s a n d , i t s h o u ld b e a d d e d ,
fr o m t h e sam e F i n a n c i a l A g r e e m e n t
w ith C a n a d a.
In s te a d o f b e in g fo r c e d t o sp en d th e
b lo c k e d s t e r l i n g b a la n c e s i n E n g la n d ,
th e h o ld e r s o f th e s e b a la n c e s , l i k e
In d ia a n d E g y p t, w i l l b e f r e e t o b u y
goods w h erever th e y p r e fe r .
A m e r ic a n
e x p o rte rs w ill h a ve a f a ir ch an ce to
e x p o r t in th e s e m a r k e ts .
6.
I n a d d i t i o n , E n g la n d h a s
a g r e e d t o s u p p o r t t h e A m e r ic a n p r o p o s a l
fo r a n in te r n a tio n a l tr a d e o r g a n iz a tio n
to
r e d u c e tr a d e b a r r ie r s a n d e lim in a te
tr a d e d is c r im in a tio n s .
W ith E n g la n d
s u p p o r tin g t h i s p r o p o s a l, t h e fo r th c o m in g
U n ite d N a tio n s T r a d e C o n fe r e n c e h o ld s
fo r th e v e ry p ro sp ect o f s u c c e ss .
w
II
«*
Each country in the sterling area
will he completely free to use any
dollars it earns to buy goods anywhere.
India, for example, could use the
dollars it gets for its exports to
the United States and Latin America
without turning oyer any part of than
to England.
5* A settlement will be made by
England with the countries holding
blocked sterling balances. England
has agreed that any payment in liquidation
of these blocked balances can be used to
buy goods in any country, including the
United States.
5« within a year# unless we
agree to a temporary extension, England
will rénové all of the restrictions on
the convertibility of sterling for
ordinary current transactions. In
practice, this will mean that the money
that England pays to Canada, Australia
and India for her Imports will be
converted by England into dollars and
can be used by these countries to pay
for goods they purchase in the United
States.
4. Within a year, unless we agree
to a temporary extension, England will
dissolve the Sterling Area Dollar Pool.
|i,X **
.
2
F or a n y go o d s o r s e r v ic e s
p u r c h a s e d i n t h e U n ite d S t a t e s , E n g la n d
w ill p a y in d o lla r s o r i f paym ent i s
m ad e i n p o u n d s , A m e r ic a n e x p o r t e r s
w i ll b e a b le t o c o n v e r t th e s t e r lin g
in to d o lla r s «
T h a t g o e s f o r A m e r ic a n
m o v ie s a s w e l l a s A m e r ic a n m a c h in e r y *
And i t
a p p l i e s t o income f r o m A m e r i c a n
In v e s tm e n ts in E n g la n d .
N o A m e r ic a n
fir m n e e d h e s it a t e t o d o b u s in e s s w ith
E n g la n d f o r f e a r t h a t i t s e a r n in g s
can n ot be tr a n s fe r r e d .
A m e r ic a n
b u s in e s s m e n w i l l b e j u s t a s s u r e o f
p a y m e n t i n d o l l a r s fr o m E n g la n d a s t h e y
w ere b e fo r e th e w a r.
Itero is what the Financial
Agreement provides?
1# England will not discriminate
against American products in any of
her import controls* so long as she
buys cotton or fruits abroad, She will
not discriminate against the import
of American cotton or fruits* If it
becomes necessary for England to limit
her agricultural or industrial imports,
this will be done on a basis fair to
all countries, including the United
States*
A fte r f r ie n d ly d is c u s s io n s o v e r
s e v e r a l m o n th s , t h e A m e r ic a n a n d B r i t i s h
n e g o t i a t o r s a g r e e d t h a t E n g la n d w o u ld
n e e d a c r e d i t o f $ 5 ~ 2 A b i l l i o n fro m
th e u n ite d S ta te s #
T h is c r e d it , to g e th e r
w ith t h a t fr o © C a n a d a , w i l l e n a b le
E n g la n d t o c o n t in u e h e r e s s e n t i a l
I m p o r t s d u r i n g t h e n e x t f e w years, m i l e
r e m o v in g t h e w a r tim e c u r r e n c y a n d t r a d e
r e s t r ic t io n s a n d d is c r im in a tio n s #
The
F in a n c ia l A greem en t t h u s p r o v id e s
tw o
t h i n g s , a c o m m itm e n t t o « a d d i s c r i m i n a t o r y
cu rren cy an d tr a d e p r a c tic e s an d a c r e d it
t o e n a b le E n g la n d t o c a r r y o u t t h e
c o r a l ta e n t#
s F
m*
They
know that restrictions and
discriminations stifle world trade
and lead to conflicts Milch can have
disastrous consequences* ait Britain
cannot abandon her wartis« currency
and trade restrictions unless she
secures help, primarily from the
Wilted states and Canada. With such
help, England would be able to put
into effect the fair currency and
trade standards Milch we have proposed
and which she supports.
¿rf «**
And i t w ill a ls o a c t a s an en co u rago aen t
t o a R u s s ia n b lo c «
w o u ld b e
S u c h a d e v e lo p m e n t
a m enace t o p e a ce an d
p r o s p e r ity e v e ry w h e re .
w a n ts t h i s k in d o f
No c o u n try
world| n o c o u n t r y
c a n a f f o r d t h i s k in a o f w o r ld .
(I
y
T h e B r it is h p e o p le h a v e show n
c le a r ly t h e ir d e s ir e t o c o o p e r a te in
b u ild in g a w o r ld i n w h ic h t r a d e c a n b e
c a r r ie d on f u l l y an d f a i r l y .
The
B r it is h p e o p le a r e w ith u s in o u r
e f f o r t to s e c u r e th e w id e s t p o s s ib le
f lo w o f w o r ld t r a d e b y e s t a b l i s h i n g
s t a b le an d o r d e r ly c o n d itio n s .
H ie g r o a t d a n g e r b e f o r e u s i s
t h e d i v i s i o n o f t h e w o r ld in t o
c o n f lic tin g b lo c s *
i n t h e e c o n o m ic
sp h ere , w o a re tr y in g to m eet th is
p r o b le m th r o u g h c o o p e r a t io n i n t h e
w o r ld F u n d a i d B a n k *
I f E n g la n d
a d o p ts th e f a i r c u r r e n c y an d tr a d e
p r a c tic e s w e h ave p ro p o sed ,
It m a y b e
p o s s ib le t o a v o id th e fo r m a tio n o f a
b lo c o u ts id e th e Fun d an d B ank u n d e r
th e le a d e r s h ip o f a
g re a t pow er,
a it
i f E n g la n d f i n d s i t n e c e s s a r y t o k e e p
h e r w a r tim e r e s t r i c t i o n s , i t w i l l
r e s u lt in a B r it is h b lo c an d a n
A m e r ic a n b l o c *
«MU»
**k
airing t h e w a r B n g l a n d i r p o s e d
c o m p r e h e n s iv e c u r r e n c y a n d t r a d e
r e s tr ic tio n s .
T h ese r e s tr ic tio n s
w ere one a s p e c t, an d
a very n ecessary
a s p e c t , o f B r i t a i n ’ s w a r tim e f in a n c in g #
t h a t E n g la n d d i d , I n e f f e c t , w a s t o
c r e a t e a n e c o n o m ic b l o c c o m p o s e d o f
th e B r itis h
laaptre except C a n a d a , a n d
in c lu d in g a num ber o f o th e r c o u n tr ie s ,
p r i n c i p a l l y I n t h e M id d le B a s t#
b lo c I s now In o p e r a tio n .
T h is
I f E n g la n d
c a n n o t g e t h e lp i n m e e tin g h e r im p o r t
n e e d s o v e r th e n e x t fe w y e a r s , s h e w i l l
b e fo r c e d to c o n tin u e a n d e v e n e x te n d
h e r w a r tim e r e s t r i c t i o n s a n d d i s c r i m i n a t i o n s *
B u t d u r in g m i s
th e
transition p e r i o d ,
f e e d in g o f t h e B r it is h p e o p le
an d th e s u p p ly in g o f B r it is h in d u s tr y
w ill r e m ilt
In a s u b s t a n t i a l n e e d f o r
fo r o lg n c r e d it *
T h e B r it is h ca n fin a n c e t h i s
t r a n s i t i o n a l n e e d i n o n e o f tw o w a y s *
O n e I s t h e r o a d o f e c o n o m ic b l o c s a n d
s c e m a s ic w a r fa r e *
e c o n o m ic i s o l a t i o n *
I t is th e ro ad
The o th e r i s
th e r o a d o f B r e tto n W oods*
I t Is th e
r o a d o f i n t e r n a t i o n a l e c o n o m ic
c o o p e r a ti cm *
of
The British people have industriously
set about to restore their international
economic position. They are reconverting
their war industries to civilian
production# They are making a determined
effort to increase their industrial
efficiency# They are exporting as
ouch as they can without depriving
themselves of the essentials of life#
These are problems which the British
people mat work out for themselves
over the next few years*
41»
Before the war the British
people wore able to earn enough from
their experts and their services to
foreigners to purchase abroad the
food end raw materials essential to
their economy. In 1958, about one-half
of Britain's imports was paid for by
the export of British goods. About
one-fourth was paid for by services
of the British merchant marine, insurance!
companies, and other financial and
commercial institutions# A n additional
one-fourth was paid for out of the net
income of British capital investments
abroad.
Mearadiile, Britain’s earnings
abroad from shipping and other services
have also been sharply reduced* Because
of enemy sinkings* the British merchant
marine is one-fourth smaller than
before the war, in spite of the large
building program# The earnings from
financial and commercial services
have fallen off along with England’s
trade and Shipping* With the recovery
of world trade, these services will
again expand and become an important
part of England»s foreign business*
4M»
J O
^
Nevertheless, aha had to draw heavily
cm her accumlatod foreign exchange
resources# and strain her credit
abroad in order to secure her essential
war inserts* She sold #4*9 billion of
her foreign investments; she roduced
her gold and dollar reserves by
$615 million; and she incurred foreign
debts which now amount to more than
$15 billion, very largely blocked
sterling balances held by foreigners
in London« As a result of her war effort#
Britain's international financial position
deteriorated by about $17 billion from
1959 to 19k5#
- 29 •
She devoted ©very resource which she
could mobilize to her defense and to
the attack on the enemy. British
exports fell until, by 19i*ii, they
were only JO percent of their prewar
volume. Hi® men released from the
export industries were put to work at
war production or were inducted into
the armed forces.
Lend-lease from the United States
and Mutual Aid from Canada filled part
of the gap between her wartime needs —
mostly for our common cause — and her
current supply of foreign exchange.
28
For five years, England, was the
principal target of the Luftwaffe,
as well as the principal base of
operations of the Western allies
against Germany# Her life was at
stake, and curs# The punishment which
she took — and which she handed out
wrote stirring chapters in the history
of free man#
I speak of this not as a reason
for the Financial Agreement, because
the Agreement looks to the present and
the future, not to the past, but I
speak of it to emphasize that during
the war, England had little tin® to think
of her export trade#
As a consequence, England is a great
importing country* She Is the best
customer of the united States and of
a score of other countries* t h a t
aigland does to eliminate wartime
currency and trade restrictions will
affect our trade and the trade of the
entire world.
England's international economic
position has been seriously distorted
by the war.
They cannot commit themselves to
allowing American products into
England on the same basis as imports
from other countries when they do not
have the dollars to pay for such
imports. They cannot commit themselves
to converting sterling into other
currencies when they do not have the
reserves necessary to do this*
England is a country that must
live by imports. Two-thirds of the food
consumed by the British people and
virtually all of the basic raw materials
except coal, used in British industry
must be purchased abroad.
I t i s a n o th e r a p p lic a tio n o f th e o ld
A m e r ic a n d o c t r i n e o f f a i r p l a y a w l
e q u a l o p p o r tu n ity «
T h ere i s n o d o u b t th a t th e B r itis h
o o v e r a a a n t a n d t h e B r it is h p e o p le
fa v o r th is program .
T h ey r e c o g n iz e
th a t su ch a p rogram i s in t h e ir
in te r e s t a s w e ll a s o u r s .
A lth o u g h
th e B r itis h w an t to a d o p t th is program ,
th e y a r e n o t in a p o s it io n w ith o u t h e lp
to m eet th e o b lig a tio n s i t e n ta ils *
*• 2lj. «*
The continuation of these wartime
restrictions will reduce world trade
and force it into uneconomic channels.
There is only one desirable way to
protect world trade from this result,
and that is by establishing the
currency and trade practices that
we have proposed. These practices
are based on the principle that the
export markets of the world should
remain open on fair and equal terns
to the exporters of all countries*
**m JgJ ~jjt
*m
If England says that these balances
can be used only to buy goods In
England, then the countries holding
more than flj billion of these sterling
balances will, in effect, be compelled
to concentrate their purchases in
England. American producers will
have little chance to export to the
countries holding blocked sterling.
On the other hand, if the countries
holding these balances can get them
gradually converted Into dollars, our
exporters will be in a position to
compete on fair and equal terns
throughout the sterling area.
These balances were acquired as a
remit of their wartime exports to
England or military expenditures mads
by England In India and the Middle
East which were paid In sterling*
Because these sterling balances could
not bo converted into dollars or used
to buy exports from England, they were
called "blocked sterling balances8*
What is don® about the limldatlon
of these blocked sterling balances will
make a big difference to American
trade*
21
Som e A m e r ic a n e x p o r t e r s a r e i n e f f e c t
e x c lu d e d f r e e a l a r g e p a r t o f t h e
is
we
w an t th e d o lla r p o o l b ro u gh t
end,
A n o th e r d a n g e r t o A lte r i c a n t r a d e
i s t h e la r g e a a o u n t o f b lo c k e d s t e r lin g ,
D u r in g t h e w a r t h e c o u n t r i e s o f t h e
s t e r l i n g a r e a a c c u m u la te d l a r g e
s t e r lin g b a la n c e s h e ld a s d e p o s its
under this arrangement a country of
the sterling area that secures a
surplus of Collars from exports to
the United States transfers the dollars
to E n g l a n d for a sterling deposit in
London.
The dollars are then allocated
by London to the various members of
the sterling area for the most
essential purchases requiring payment
in dollars, in practice« dollars are
not allocated for buying American
machinery or any other American goods
V
which can be bought
in England or
V
anywhere in the sterling a r e a .
19
Our producers are perfectly willing
to sell their products in competition
with the products of other countries,
provided the buyer has a fair chance
... M
to select American goods btt/fhe basis
\
|§!
V
of quality and price# ait American
producers will not have their fair
chance to sell their products in the
sterling area until the dollar pool
is terminated.
The dollar pool is the wartime
arrangement made by England to
mobilize and conserve the dollar
resources of all of the countries of
the sterling area.
«1» 1 3 **
In half the trading area of the
world, American products would be
at a serious disadvantage in competing
with the products of the sterling
area countries* Our trade with
Britain and the stalling area would
become a mere trickle*
American exporters ask no special
advantages In trading with foreign
countries. They do ask that no
discriminations be directed against
them*
m>
jjf
mm
If sterling cannot b© converted
into d o l l a r s , England and the sterling
area countries Sit concentrate on their
trade with each other, not because their
goods are better but because of monetary
impediments. It will moan that Egyptian
and Indian cotton will replace American
cotton, Bhodesian and Near Eastern
tobacco will replace American tobacco,
and British automobiles and machinery
will replace American automobiles
and machinery#
countries like Canada, the British
Dominions, and the agricultural
countries of Europe, which customarily
have a large favorable balance of
payments with England, would be
unable to use the sterling they
receive for their exports to pay for
their imports in dollars from the
united states* Our trade with these
countries would have to be restricted
because they would not have the means
to pay us*
- 15 I n b r i e f , A m e r ic a n e x p o r t tr a d ©
is d ir e c tly d ep en d en t upon th e
c o n v e r tib ility o f s t e r lin g in to
d o lla r s *
y/'
D u r in g t h e w a r , s t e r l i n g
becam e a n in c o n v e r tib le c u r r e n c y *
I t c o u ld b e u s e d t o sta k e p a y m e n ts
in t h e s t e r l i n g a r e a ) b u t i t c o u ld
n o t b e c o n v e r te d in to d o lla r s *
If
t h i s wartime r e s t r i c t i o n i s
c o n t in u e d , s e r i o u s l i m i t a t i o n s w o u ld
b e p la c e d o n o u r e x p o r ts *
<m
3t 4ü
«Mu
C o n s t d o r « liâ t w o u ld h a p p e n i f
E n g la n d s h o u ld h a v e t o m a in t a in t h e
p re se n t cu rre n cy and tra d e r e s tr ic tio n s .
A m e r ic a n g o o d s c a n b e b o u g h t b y f o r e i g n
c o u n tr ie s o n ly w ith d o lla r s *
The
o n ly w a y t o b u y A m e r ic a n c o t t o n a n d
w h e a t , A m e r ic a n a u t o m o b ile s a n d
m a c h in e r y I s t o p a y I n d o ll a r s *
If,
an d o n ly I f , s t e r lin g i s c o n v e r tib le
in to d o lla r s , ca n th e h o ld e r s o f
s t e r lin g b u y cu r p r o d u c ts .
A s a m a tte r
o f f a c t , m any c o u n tr ie s ca n g e t th e
d o lla r s th e y n eed to b u y go o d s In
A m e r ic a o n ly w it h t h e m o n e y E n g la n d
p a y s th e m f o r t h e g o o d s t h e y s e l l t o h e r #
M»
«ÉW
T o g e th e r th e s e tw o c o u n t r ie s do
a b o u t o n o -th ir d o f th e tr a d e o f th e
e n t ir e w o r ld *
T h e c o u n tr ie s c lo s e ly
li n k e d i n t r a d e w i t h E n g la n d a n d t h e
U n ite d S t a t e s a c c o u n t f o r 7 5 p e r c e n t
o f w o r ld t r a d e *
I f t h e s e tw o
c o u n tr ie s w ere t o a d o p t th e sa n e f a i r
cu rre n cy an d tr a d e p r a c tic e s , th e
r e s t o f t h e w o r ld w o u ld i n e v i t a b l y
fo llo w *
On th e o th e r h an d , c o n f lic t
b e tw e e n t h e U n ite d s t a t e s a n d E n g la n d
o n c u r r e n c y a n d t r a d e p o l i c i e s w o u ld
j u s t a s i n e v i t a b l y d i v i d e t h e w o r ld
i n t o e c o n o m ic b l o c s *
ÜÉs ¡ff f i
W
’
?/h o n c o u n t r i e s e x c h a n g e t h e i r s u r p l u s
p r o d u c ts th e y a l l g a in b e c a u s e i t
m akes p o s s ib le in c r e a s e d p r o d u c tio n
o f th o lr s p e c ia lis e d p r o d u c ts .
T h is
m ean s m ore p r o d u c tio n a n d a h ig h e r
l e v e l o f in c o m e i n t h e c o u n t r y u fa ic h
s e lls « a s w e ll a s m ore g o o d s an d a
b e tt e r sta n d a rd o f l i v i n g in th e
c o u n tr y w h ic h b u y s .
T h is p rogram f o r th e g e n e r a l
w e lfa r e ca n b e p u t in to e f f e c t i f th e
u n ite d N a tio n s , a n d p a r t ic u la r ly th e
U n ite d S t a t e s a n d E n g la n d , a d o p t t h e
sam e f a i r c u r r e n c y a n d t r a d e p r a c t i c e s .
*• 1 1 **
In s h o r t, m
mat h a v e a h ig h l e v e l
o f t r a d e b e tw e e n o u r n a tio n a n d o th e r
n a tio n s t o h a v e f u l l p r o d u c tio n , f u l l
e m p lo y m e n t, a n d a l a r g e n a t i o n a l in c o m e
in A m e r ic a ,
A ll s e c tio n s o f o u r
c o u n tr y , a l l s e c to r s o f o u r econ om y
a re d ir e c tly o r in d ir e c tly dependen t
upon fo r e ig n tr a d e ,
I n t e r n a t i o n a l e c o n o m ic c o o p e r a t io n
a n d t h e e x p a n s io n
o f w o r ld t r a d e i r e
d e f in it e ly in th e I n te r e s t o f t h is
c o u n try an d a l l c o u n tr ie s .
10
Our tra d e can n ot ro ach th e
h ig h l e v e l s n e c e s s a r y f o r A m e r ic a n
p r o s p e r it y i f t h e w o r ld a g a in r e s o r t s
to cu rren cy and tra d e r e s tr ic tio n s *
U n le s s o u r e x p o r te r s h a v e a c c e s s t o
w o r ld m a r k e ts o n f a i r a n d e q u a l te r m s
w e w i l l n o t b e a b le t o m a in ta in o u r
p r o d u c tio n i n th o s e f i e l d s i n w h ic h
w e h a v e lo n g s p e c ia liz e d —
g r o w in g
c o t t o n * t o b a c c o a n d w h e a t} m a k in g
a u to m o b ile s , m a c h in e r y
a n d e q u ip m e n t*
mm
Ip mm
From 1 9 5 1 t o 19 5 4 # o u r a v e r a g e s a l e s
w e re o n ly $ 4 75 m illio n a y e a r .
The
d i f f i c u l t y o f f in d in g m a rk e ts a b ro a d
f o r o u r a g r ic u lt u r a l s u r p lu s w a s a n
im p o r ta n t f a c t o r in t h e d e c lin e o f
n e a r ly 60 p e r c e n t i n fa r m p r i c e s fro m
19 2 8 t o 19 5 2 .
T h e d e p r e c ia tio n in
c u r r e n c ie s w a s a l s o a n im p o r ta n t
e le m e n t i n t h i s d e c l i n e i n fa r m p r i c e s .
W hen t h e p o u n d s t e r l i n g , f o r e x a m p le ,
d e p r e c ia t e d fr o m $ 4 * 8 6 p e r p o u n d t o
$ 5 .2 0 , i t p u t p r e s s u r e o n th e p r ic e s
o f a l l A m e r ic a n fa r m p r o d u c t s s o l d i n
w o r ld m a r k e ts .
Q
Ml
B ecau se o f th e s e m easu res th e e x p o rts
o f t h e U n ite d S t a t e s w e re h a r d e r h i t
th a n th o s e o f a n y o th e r c o u n tr y *
Our
z
s h a r e o f w o r ld e x p o r t s , w h ic h i n 1 9 9 8
w a s 1 5 * 8 p e r c e n t o f t h e w o r ld t o t a l o f
$ 5 2 * 5 b i l l i o n , f e l l i n 19 5 1*. t o 1 1 . 5 p e r c e n t
o f t h e ran ch s m a lle r t o t a l o f $ 1 8 * 5 b i l l i o n .
T h is d e c lin e in o u r e x p o r ts c o n tr ib u te d
t o th e s e v e r e d e p r e s s io n in in d u s tr y
an d th e c o lla p s e in a g r ic u lt u r e .
O ur e x p o r ts o f w h e a t, c o tto n ,
to b a c c o an d la r d w ere p a r tic u la r ly h ard
h it.
F rom 1 9 2 5 t o 19 2 8 w e s o ld a b r o a d
on t h e a v e r a g e m o re th a n $ 1 ,2 5 0 m il l i o n
o f th e s e fo u r c r o p s a n n u a lly .
O u r econ <
on e x p o rts
th e y e a r s ah ead *
o f th e
We m e t
ta r la is fo r our
goods
I n d u s t r i e s a n d som e
fo r ou r con su m ers*
w e m u st s e l l
a b r o a d a la r g e p a r t o f o u r p r o d u c tio n ,
a s ran ch a s 8 o r 1 0 p e r c e n t , t o
o u r a g r ic u lt u r e an d in d u s tr y n a m in g ,
*s n o t fo r g e t th e le s s a i o f
M l our
a g r i c u l t u r e a n d in d i
r e s tr ic tio n s *
6
W o on© c o u n t r y c a n b y i t s e l f d e a l
w i t h i n t e r n a t i o n a l e c o n o m ic p r o b le m s ,
b e ca u se th e y a r e n o t n a tio n a l in
c h a ra c te r.
T hey a re th e r e s p o n s ib ility
o f a l l c o u n tr ie s ,
le havo prop osed,
t h e r e f o r e , t h a t t h e U n ite d N a tio n s
p r o v id e th e m ean s f o r c o n tin u in g
c o o p e r a tio n th r o u g h th e I n te r n a tio n a l
B an k , th e In te r n a tio n a l F u n d , an d
th ro u ^ a an in te r n a tio n a l tr a d e
o r g a n iz a tio n .
T he s u c c e s s o f t h is program w i ll
m ean a g o o d d e a l t o t h e U n ite d S t a t e s *
*11» F i n a n c i a l A g r e e m e n t w i t h E n g la n d ,
M ilc h y o u a r e now c o n s id e r in g , i s
above a l l f o r th e purpose o f
e s ta b lis h in g a sou n d an d f a i r b a s is
f o r w o r ld tr a d © a n d i n t h i s w a y
le s s e n in g th e d a n g e rs o f p o lit ic a l
a n d e c o n o m ic w a r f a r e *
H its go vern m en t h a s a d v o c a te d
a p r o g r a m o f i n t e r n a t i o n a l e c o n o m ic
c o o p e r a t io n t o r e s t o r e w o r ld tr a d e
an d t o e lim in a te th e c u r r e n c y an d
tr a d e d is c r im in a tio n s th a t d iv id e
n a t i o n s i n t o c o n f l i c t i n g e c o n o m ic
b lo c s *
T h at is th e r e s p o n s ib ility o f th e
u n ite d N a tio n s —
an d th a t m oans
R u s s ia a n d E n g la n d * a s w e l l a s t h e
U n ite d s t a t e s a n d t h e o th e r c o u n t r ie s .
We m u st do t h i s jo b *
We m u st h a v e In te r n a tio n a l
c o o p e r a tio n o n p o l i t i c a l p r o b le m s .
T h a t i s m o st Im p o r ta n t, b u t i t i s n o t
enough.
T h e e c o n o m ic c a u s e s o f
c o n f lic t m u st b e e lim in a te d .
The
e v e r y -d a y r e la t io n s b e tw e e n t h e
b u s in e s s m e n o f a l l c o u n t r ie s m u st b e
c a r r ie d on in a f a ir an d fr ie n d ly w ay*
c o n d u c iv e t o g o o d w i l l a n d m u tu a lly
b e n e fic ia l tr a d e .
M a in ta in in g p e a c e r e q u ir e s
c o n s ta n t v ig ila n c e b y t h e p e o p le o f
a l l c o u n tr ie s *
W e k n o w * a t lo r ® l a s t *
t h a t e n d u r in g p e a c e d o e s n o t f o llo w
a u to m a tic a lly th e v ic to r y o f ou r
arm ed fo r c e s *
O u r p e o p le h a v e le a r n e d
th a t p ea ce a s w e ll a s p r o s p e r ity d o e s
n o t com e t o th o s e w ho m e r e ly s i t a n d
w a it.
We m u st w o rk fo r p e a e e a s w e
w o rk e d t o w in t h e w a r .
l e m u st a l l
w o rk , an d w ork c o n s ta n tly , t o s e t t le
t h e p r o b le m s t h a t m ig h t l e a d t o
c o n flic t and w ar.
2
T h i s i s t h e cm © r e w a r d o f v i c t o r y
t h a t o u r p e o p le a n d th e p e o p le o f
a l l th e U n ite d N a tio n s a s k —
a
w o r ld i n w h ic h c o u n t r ie s w o r k a n d
li v e to g e th e r in p e a ce an d p r o s p e r ity .
A s y o u a r e w e ll a w a re# w o r ld
p e a ce an d p r o s p e r ity a r e in te r lin k e d .
T h e w o r ld c a n n o t h a v e a s t a b le #
e n d u r in g p e a c e w h ile d e v a s t a t io n a n d
hun ger s ta lk th e e a r th .
T h is c o u n tr y
c a n n o t p r o s p e r i n a w o r ld t o r n b y
fe a r and s t r if e .
Ho c o u n try , no
'■ s
m a tt e r h ow b i g o r s tr o n g # c a n r e m a in
either i n p o l i t i c a l o r e c o n o m i c
is o la tio n .
I a s v e r y g la d to a p p e a r b e fo r e
t h i s C O B K iitte © a n d t o e x p l a i n w h a t , i n
m y ju d g m e n t, t h e p r o p o s e d F i n a n c i a l
A g r e e m e n t w i t h t h e u n i t e d K in g d o m
m e a n s t o A m e r ic a a n d t o t h e w o r ld .
W ith t h e e n d o f t h e w a r w e i n t h e
A d m in is tr a tio n a n d y o u in c o n g r e s s
h a ve a new r e s p o n s ib ilit y t o o u r
p e o p le ,
m e s a c r ific e s th e y h ave
born e w ill h ave bean la r g e ly
m e a n in g le s s u n le s s w e d o
all i n o u r
p ow er t o a c h ie v e la s t in g p e a ce an d
sou n d p r o s p e r ity .
TREASURY DEPARTMENT
W a s h in g t o n
S t a t e m e n t b y F r e d M, V in s o n , S e c r e t a r y
o f t h e T r e a s u r y , b e f o r e t h e H o u se
C o m m itte e on B a n k in g a n d C u r r e n c y ,
1 0 : 3 0 A .M ,, T u e s d a y , May 1 4 ,
1946,
I am v e r y g la d t o a p p e a r b e f o r e t h i s C o m m itte e an d t o
e x p l a i n w h a t , i n my ju d g m e n t , t h e p r o p o s e d F i n a n c i a l A g re e m e n t
w i t h th e U n it e d K in g d o m m eans t o A m e r ic a and t o t h e w o r l d .
W it h t h e end o f t h e w a r we i n t h e A d m i n i s t r a t i o n an d y o u u
i n C o n g r e s s h a v e a new r e s p o n s i b i l i t y t o o u r p e o p le .
The
s a c r i f i c e s t h e y h a v e b o r n e w i l l h a v e b e e n l a r g e l y m e a n in g le s s
u n l e s s we do a l l i n o u r p o w e r t o a c h i e v e l a s t i n g p e a c e a n d
so u n d p r o s p e r i t y .
T h i s i s th e one r e w a r d o f v i c t o r y t h a t o u r
p e o p le and th e p e o p le o f a l l t h e U n it e d N a t io n s a s k - a w o r ld
i n w h ic h c o u n t r i e s w o rk a n d l i v e t o g e t h e r i n p e a c e and
p ro sp e r i t y *
A s y o u a r e w e l l a w a r e , w o r ld p e a c e a n d p r o s p e r i t y a r e
in t e r lin k e d *
T he w o r ld c a n n o t h a v e a s t a b l e , e n d u r in g p e a c e
w h i l e d e v a s t a t i o n and h u n g e r s t a l k t h e e a r t h . " T h is c o u n t r y
cannot p ro sp e r
i n a w o r ld t o r n b y f e a r a n d s t r i f e ; .
No
c o u n t r y , no m a t t e r how b i g o r s t r o n g , c a n r e m a in e i t h e r i n
p o l i t i c a l o r e c o n o m ic i s o l a t i o n - ,
M a i n t a i n i n g p e a c e r e q u i r e s c o n s t a n t v i g i l a n c e b y th e
p e o p le o f a l l c o u n t r i e s .
We kn o w , a t lo n g l a s t , t h a t e n d u r in g
p e a c e d o e s n o t f o l l o w a u t o m a t i c a l l y t h e v i c t o r y o f o u r arm ed
fo rc e s.
O u r p e o p le h a v e l e a r n e d t h a t p e a c e a s w e l l a& p r o s
p e r i t y d o e s n o t come t o t h o s e who m e r e ly s i t and w a i t .
We m u st w o rk f o r p e a c e a s we w o rk e d t o w in t h e w a r .
We
m u st a l l w o r k , a n d w o rk c o n s t a n t l y , to s e t t l e th e p r o b le m s
t h a t m ig h t le a d to c o n f l i c t an d w a r .
T h a t i s th e r e s p o n s i
b i l i t y o f t h e U n it e d N a t io n s - a n d t h a t m eans R u s s i a an d
E n g la n d , a s w e l l a s t h e U n it e d S t a t e s a n d t h e o t h e r ^ c o u n t r i e s .
We m u st do t h i s j o b .
We m u st h a v e i n t e r n a t i o n a l c o o p e r a t i o n on p o l i t i c a l
p r o b le m s .
T h a t i s m o s t im p o r t a n t , b u t i t i s n o t e n o u g h .
T he
e c o n o m ic c a u s e s o f c o n f l i c t m u st be e l i m i n a t e d .
T he e v e r y - d a y
r e l a t i o n s b e tw e e n t h e b u s in e s s m e n o f a l l c o u n t r i e s m u st be
c a r r i e d on i n a f a i r a n d f r i e n d l y w a y , c o n d u c iv e t o g ood w i l l
and m u t u a lly b e n e f i c i a l t r a d e ,
V -3 2 5
2
The F i n a n c i a l A g re e m e n t w i t h E n g la n d , w h ic h y o u a r e pow
c o n s id e r in g , is , above a l l f o r th e p u rp o se o f e s t a b lis h in g a s o u n d and f a i r b a s i s f o r w o r ld t r a d e a n d i n t h i s w ay l e s s e n
in g th e d a n g e r s o f p o l i t i c a l aud e c o n o m ic w a r f a r e .
T h i s G o v e rn m e n t h a s a d v o c a t e d a p ro g ra m o f i n t e r n a t i o n a l
e c o n o m ic c o o p e r a t io n t o r e s t o r e w o r ld t r a d e an d t o e l i m i n a t e
th e c u r r e n c y and t r a d e d is c r im in a t io n s t h a t d iv i d e n a t io n s
i n t o c o n f l i e - t i n g e c o n o m ic b l o c s .
No one c o u n t r y c a n b y i t s e l f
d e a l w i t h i n t e r n a t i o n a l e c o n o m ic p r o b le m s , b e c a u s e t h e y a r e
n o t n a t io n a l in c h a r a c t e r .
T h e y a r e th e r e s p o n s i b i l i t y o f a l l
c o u n t r ie s #
We h a v e p r o p o s e d , t h e r e f o r e , t h a t t h e U n it e d
N a t io n s p r o v id e t h e m eans f o r c o n t i n u i n g c o o p e r a t io n t h r o u g h
t h e I n t e r n a t i o n a l B a n k , th e I n t e r n a t i o n a l F u n d , a n d t h r o u g h an
in t e r n a t io n a l tra d e o r g a n iz a t io n ,
The s u c c e s s o f t h i s p ro g ra m w i l l mean a g ood d e a l t o t h a
U n it e d S t a t e s .
O ur econom y h a s a lw a y s b e e n d e p e n d e n t on
f o r e i g n t ra d e #
I t w i l l be m ore d e p e n d e n t on e x p o r t s and im
p o r t s in th e y e a r s a h e a d .
We m u st b u y a b r o a d many o f t h e ra w
m a t e r i a l s f o r o u r i n d u s t r i e s an d some im p o r t a n t g o o d s f o r o u r
co n su m e rs.
We m u st s e l l a b r o a d a l a r g e p a r t o f o u r . p r o d u c t io n ,
a s m uch a s 8 o r 1 0 p e r c e n t , to k e e p o u r a g r i c u l t u r e a n d i n d u s
t r y r u n n in g .
L e t ’ s n o t f o r g e t th e le s s o n o f th e d e ca d e b e f o r e th e w ar
w hen o u r a g r i c u l t u r e and 5 _ n d u s try s u f f e r e d s e v e r e l y fro m t r a d e
and c u r r e n c y r e s t r i c t i o n s ,
B e c a u s e o f th e s e m e a su re s th e e x
p o r t s o f t h e U n it e d S t a t e s w e re h a r d e r h i t t h a n t h o s e o f a n y
o th e r co u n try .
O ur s h a r e o f w o r ld e x p o r t s , w h ic h i n 1 9 2 8 w as
1 6 . 8 p e r c e n t o f th e w o r ld t o t a l o f $ 3 2 , 5 b i l l i o n , f e l l i n
1 9 3 4 t o 1 1 . 5 p e r c e n t o f t h e m uch s m a l l e r t o t a l o f $ 1 8 , 5 b i l
lio n ,
T h i s d e c l i n e i n o u r e x p o r t s c o n t r i b u t e d t o th e s e v e r e
d e p r e s s i o n i n i n d u s t r y a n d th e c o l l a p s e i n a g r i c u l t u r e ,
O ur e x p o r t s o f w h e a t , c o t t o n , t o b a c c o an d l a r d w e re
p a r t i c u l a r l y h a rd h i t .
From 1 9 2 5 to 1 9 2 8 we s o l d a b r o a d on
t h e a v e r a g e m ore t h a n $ 1 , 2 5 0 m i l l i o n o f t h e s e f o u r c r o p s
a n n u a lly .
From 1© 31 t o 1 9 3 4 , o u r a v e r a g e s a l e s w e re o n ly
$ 4 7 3 m i l l i o n a y e a r , . The d i f f i c u l t y o f f i n d i n g m a r k e t s
a b ro a d f o r o u r a g r i c u l t u r a l s u r p l u s w as an im p o r t a n t f a c t o r
i n t h e d e c l i n e o f n e a r l y 60 p e r c e n t I n f a r m p r i c e s fro m
1928 to 1 9 3 2 ,
The d e p r e c i a t i o n i n c u r r e n c i e s w as a l s o an
im p o r t a n t e le m e n t i n t h i s d e c l i n e i n f a rm p r i c e s ,
When th e
p o u n d s t e r l i n g , f o r e x a m p le , d e p r e c i a t e d fro m $ 4 , 8 6 p e r p o u n d
t o $ 3 , 2 0 , I t p u t p r e s s u r e on t h e p r i c e s o f a l l A m e r ic a n f a r m
p r o d u c t s s o ld i n w o r ld m a r k e t s ;
O ur t r a d e c a n n o t r e a c h t h e h i g h l e v e l s n e c e s s a r y f o r
A m e ric a n p r o s p e r i t y i f t h e w o r ld a g a i n r e s o r t s t ô c u r r e n c y an d
tra d e r e s t r ic t io n s .
U n le s s o u r e x p o r t e r s h a v e a c c e s s t o w o r ld
m a r k e t s on f a i r and e q u a l te rm s we w i l l n o t he a b l e t o m a in
t a i n o u r p r o d u c t io n i n t h o s e f i e l d s i n w h ic h we h a v e lo n g
s p e c i a l i z e d - g r o w in g c o t t o n , t o b a c c o a n d w h e a t ; m a k in g a u t o
m o b ile s , m a c h in e r y and e q u ip m e n t .
I n s h o r t , we m u st h a v e a
h ig h l e v e l o f t r a d e b e tw e e n o u r n a t i o n an d o t h e r n a t i o n s to
h a v e f u l l p r o d u c t i o n , f u l l e m p lo y m e n t, an d a l a r g e n a t i o n a l
in co m e I n A m e r ic a .
A l l s e c t io n s o f o u r c o u n t r y , a l l s e c t o r s
o f o u r econom y a r e d i r e c t l y o r i n d i r e c t l y d e p e n d e n t u p o n
f o r e ig n t r a d e .
I n t e r n a t i o n a l e c o n o m ic c o o p e r a t i o n a n d th e e x p a n s io n o f
w o r ld t r a d e a r e d e f i n i t e l y i n t h e i n t e r e s t o f t h i s c o u n t r y
and a l l c o u n t r i e s .
When c o u n t r i e s e x c h a n g e t h e i r s u r p l u s
p r o d u c t s t h e y a l l g a i n b e c a u s e i t m akes p o s s i b l e i n c r e a s e d
p r o d u c t io n o f t h e i r s p e c i a l i z e d p r o d u c t s .
T h i s m eans m ore
p r o d u c t io n and a h i g h e r l e v e l o f in co m e i n t h e c o u n t r y w h ic h
s e l l s , a s w e l l a s m ore g o o d s a n d a b e t t e r s t a n d a r d o f l i v i n g
i n th e c o u n t r y w h ic h b u y s .
T h i s p ro g ra m f o r th e g e n e r a l w e l f a r e c a n b e put., i n t o
e f f e c t i f t h e U n it e d N a t i o n s , a n d p a r t i c u l a r l y t h e U n it e d
S t a t e s a n d E n g la n d , a d o p t t h e same f a i r c u r r e n c y an d t r a d e
p r a c t i c e s . T o g e t h e r t h e s e tw o c o u n t r i e s do a b o u t o n e - t h i r d
o f th e t r a d e o f th e e n t ir e w o r ld .
The c o u n t r ie s c lo s e ly
l i n k e d i n t r a d e w i t h E n g la n d a n d t h e U n it e d S t a t e s a c c o u n t
f o r 7 5 p e r c e n t o f w o r ld t r a d e T I f t h e s e tw o c o u n t r i e s w e re
t o a d o p t th e same f a i r c u r r e n c y and t r a d e p r a c t i c e s , t h e r e s t
o f th e w o r ld w o u ld I n e v i t a b l y f o l l o w .
On t h e o t h e r h a n d , co n
f l i c t b e tw e e n th e U n it e d S t a t e s and E n g la n d on c u r r e n c y an d
t r a d e p o l i c i e s w o u ld j u s t a s i n e v i t a b l y d i v i d e t h e w o r ld i n t o
e c o n o m ic b l o c s .
C o n s id e r w h a t w o u ld h a p p e n i f E n g la n d s h o u ld h a v e to
m a in t a in t h e p r e s e n t c u r r e n c y and t r a d e r e s t r i c t i o n s . A m e ric a n
g o o d s c a n be b o u g h t b y f o r e i g n c o u n t r i e s o n l y w i t h d o l l a r s .
The o n l y w ay to b u y A m e r ic a n c o t t o n a n d w h e a t , A m e ric a n a u t o
m o b ile s and m a c h in e r y i s t o p a y i n d o l l a r s .
I f , and o n ly i f ,
s t e r l i n g i s c o n v e r t ib le in t o d o l l a r s , can th e h o ld e r s o f
s t e r lin g buy o u r p ro d u c ts .
As a m a t t e r o f f a c t , many c o u n t r i e s
c a n g e t th e d o l l a r s t h e y n e e d t o b u y g o o d s I n A m e ric a o n l y w i t h
th e m oney E n g la r id p a y s th e m f o r t h e g o o d s t h e y s e l l to h e r .
I n b r i e f , A m e ric a n e x p o r t t r a d e i s d i r e c t l y d e p e n d e n t u p o n th e
c o n v e r t i b i l i t y o f s t e r l i n g in t o d o l l a r s .
C u r in g t h e w a r , s t e r l i n g becam e an i n c o n v e r t i b l e c u r r e n c y *
I t c o u ld b e u s e d t o make p a y m e n ts i n t h e s t e r l i n g a r e a ; b u t i t
c o u ld n o t be c o n v e r t e d i n t o d o l l a r s . «
I f t h i s w a r t im e r e s t r i c
t i o n i s c o n t in u e d , s e r i o u s l i m i t a t i o n s w o u ld b e p l a c e d on o u r
e x p o rts*
C o u n t r i e s l i k e C a n a d a , t h e B r i t i s h D o m in io n s , an d
t h e a g r i c u l t u r a l 'c o u n t r i e s o f E u r o p e , w h ic h c u s t o m a r i l y h a v e
l a r g e f a v o r a b l e b a la n c e o f p a y m e n ts w i t h E n g la n d , w o u ld be
u n a b le to u s e t h e s t e r l i n g t h e y r e c e i v e f o r t h e i r e x p o r t s to
p a y f o r ■ t h e i r im p o r t s i n d o l l a r s fro m th e U n it e d S t a t e s . O ur
t r a d e w i t h t h e s e c o u n t r i e s w o u ld h a v e t o be r e s t r i c t e d be-*
c a u s e t h e y w o u ld n o t h a v e t h e m eans to p a y u s ,
a
I f s t e r l i n g c a n n o t be c o n v e r t e d i n t o d o l l a r s , E n g la n d
and t h e s t e r l i n g a r e a c o u n t r i e s m u st c o n c e n t r a t e on t h e i r
tra d e w it h e a ch o t h e r , n o t b e c a u se t h e ir goods a re b e t t e r , ,
b u t b e c a u s e o f m o rie ta r y Im p e d im e n t s .
I t w i l l mean t h a t
E g y p t ia n a n d I n d i a n c o t t o n w i l l r e p l a c e A m e r ic a n c o t t o n ,
R h o d e s ia n and N e a r E a s t e r n t o b a c c o w i l l r e p l a c e A m e ric a n
t o b a c c o , and B r i t i s h a u t o m o b ile s and m a c h in e r y w i l l r e
p l a c e A m e r ic a n a u t o m o b ile s and m a c h in e r y .
I n h a l f th e
t r a d i n g a r e a o f th e w o r ld ., A m e ric a n p r o d u c t s w o u ld be a t a
s e r i o u s d is a d v a n t a g e i n c o m p e t in g w i t h t h e p r o d u c t s o f th e
s t e r l in g a re a c o u n t r ie s .
O ur t r a d e w i t h B r i t a i n an d t h e
s t e r l i n g a r e a w o u ld becom e a m ere t r i.c k le - *
A m e r ic a n e x p o r t e r s a s k no s p e c i a l a d v a n t a g e s i n t r a d i n g
w ith ^ f o r e i g n c o u n t r i e s .
T h e y do a s k t h a t no d i s c r i m i n a t i o n s
be d i r e c t e d a g a i n s t th e m .
O pr p r o d u c e r s a r e p e r f e c t l y w i l l
in g t o s e l l t h e i r p r o d u c t s I n c o m p e t it io n w i t h t h e p r o d u c t s
o f o t h e r c o u n t r i e s , p r o v id e d t h e b u y e r h a s a f a i r c h a n c e t o
s e l e c t A m e r ic a n g o o d s on th e b a s i s o f q u a l i t y and p r i c e . B u t
A m e ric a n p r o d u c e r s w i l l n o t h a v e t h e i r f a i r c h a n c e " t o s e l l
t h e i r p r o d u c t s i n t h e s t e r l i n g a r e a u n t i l th e d o l l a r p o o l i s
t e r m in a t e d .
The d o l l a r p o o l I s th e w a r t im e a r r a n g e m e n t made b y
E n g la n d to m o b i l i z e and c o n s e r v e t h e d o l l a r r e s o u r c e s o f a l l
o f tE e c o u n t r ie s o f t h e s t e r l i n g a r e a .
U nder t h is a rra n g e
m ent a c o u n t r y o f th e s t e r l i n g a r e a t h a t s e c u r e s a s u r p l u s o f
d o l l a r s fro m e x p o r t s t o t h e U n it e d S t a t e s t r a n s f e r s t h e d o l
l a r s t o E n g la n d f o r a s t e r l i n g d e p o s i t i n L o n d o n .
The d o l l a r s
a r e t h e n a l l o c a t e d b y L o n d o n to t h e v a r i o u s m em bers o f t h e
s t e r l i n g a r e a f o r t h e m o st e s s e n t i a l p u r c h a s e s r e q u i r i n g p a y
m ent i n d o l l a r s , In p r a c t ic e , d o lla r s a re n o t a llo c a t e d fo r
b u y in g A m e r ic a n m a c h in e r y o r a n y o t h e r A m e r ic a n g o o d s w h ic h
c a n be^ b o u g h t i n E n g la n d o r a n y w h e re i n th e s t e r l i n g a r e a .
Some A m e r ic a n e x p o r t e r s a r e i n e f f e c t e x c lu d e d fro m a l a r g e
p a r t o f th e w o r ld s m a rk e t s .
T h a t I s why* we w a n t t h e d o l l a r
p o o l b ro u g h t to an e n d .
1
5
A n o t h e r d a n g e r t o A m e r ic a n t r a d e i s t h e l a r g e am ount o f
b lo c k e d s t e r l i n g .
D u r in g t h e w a r th e c o u n t r i e s o f t h e s t e r
l i n g a r e a a c c u m u la t e d l a r g e s t e r l i n g b a l a n c e s h e ld a s d e p o s i t s
in London b an ks o r in v e s t e d in B r i t i s h T r e a s u r y s e c u r i t i e s .
T h e s e b a la n c e s w e re a c q u i r e d a s a r e s u l t o f t h e i r w a r t im e e x
p o r t s to E n g la n d o r m i l i t a r y e x p e n d i t u r e s made b y E n g la n d i n
I n d i a a n d th e M id d le E a s t w h ic h w e re p a id i n s t e r l i n g * B e c a u s e
t h e s e s t e r l i n g b a la n c e s c o u ld n o t be c o n v e r t e d i n t o d o l l a r s
o r u s e d to b u y e x p o r t s fr o m E n g la n d , t h e y w e re c a l l e d ” b lo c k e d
s t e r l in g b a la n c e s ” .
W hat i s d o n e a b o u t t h e l i q u i d a t i o n o f t h e s e b lo c k e d
s t e r l i n g b a la n c e s w i l l make a b i g d i f f e r e n c e , t o A m e ric a n t r a d e .
I f E n g la n d s a y s t h a t ' t h e s e b a l a n c e s c a n be u s e d o n l y t o b u y
g o o d s i n E n g la n d , t h e n t h e c o u n t r i e s h o l d i n g m ore t h a n | 1 5
b i l l i o n o f t h e s e s t e r l i n g b a l a n c e s w i l l , i n e f f e c t , be com
p e l l e d to c o n c e n t r a t e t h e i r p u r c h a s e s i n E n g la n d .
A m e ric a *
p r o d u c e r s w i l l h a v e l i t t l e c h a n c e to e x p o r t to th e c o u n t r i e s
h o ld in g b lo c k e d s t e r l i n g .
On t h e o t h e r h a n d , i f t h e c o u n
t r i e s h o l d i n g t h e s e b a la n c e s c a n g e t them g r a d u a l l y c o n v e r t e d
i n t o d o l l a r s , o u r e x p o r t e r s w i l l be i n a p o s i t i o n to co m p ete
on f a i r and e q u a l te rm s t h r o u g h o u t th e s t e r l i n g a r e a .
T h e c o n t i n u a t i o n o f t h e s e w a r t im e r e s t r i c t i o n s w i l l r e d u c e
w o r ld t r a d e a n d f o r c e i t i n t o u n e c o n o m ic c h a n n e l s .
T h e re i s
o n ly one d e s i r a b l e w ay t o p r o t e c t w o r ld t r a d e fro m t h i s r e s u l t ,
and t h a t I s .b y e s t a b l i s h i n g t h e c u r r e n c y a n d t r a d e p r a c t i c e s
t h a t we h a v e p r o p o s e d .
T h e s e p r a c t i c e s a r e b a s e d on th e p r i n
c i p l e t h a t th e e x p o r t m a r k e t s o f th e w o r ld s h o u ld r e m a in o p e n
on f a i r a n d e q u a l t e r m s t o th e e x p o r t e r s o f a l l c o u n t r i e s .
It
i s a n o t h e r a p p l i c a t i o n o f th e o l d A m e ric a n d o c t r i n e o f f a i r
p l a y and e q u a l o p p o r t u n i t y .
T h e r e i s no d o u b t t h a t t h e B r i t i s h G o v e rn m e n t an d t h e
B r i t i s h p e o p le f a v o r t h i s p r o g r a m .
T h e y r e c o g n iz e t h a t s u c h
a p ro g ra m i s i n t h e i r i n t e r e s t a s w e l l a s o u r s .
A lt h o u g h th e
B r i t i s h w an t t o a d o p t t h i s p ro g ra m , t h e y a r e n o t i n a p o s i
t i o n w it h o u t h e l p to m eet t h e o b l i g a t i o n s i t e n t a i l s .
They
c a n n o t com m it t h e m s e lv e s to a l l o w i n g A m e ric a n p r o d u c t s I n t o
E n g la n d on th e same b a s i s a s im p o r t s fro m o t h e r c o u n t r i e s
w hen t h e y do n o t h a v e t h e d o l l a r s t o p a y f o r s u c h i m p o r t s .
T h e y c a n n o t co m m it t h e m s e lv e s to c o n v e r t i n g s t e r l i n g i n t o
o t h e r c u r r e n c i e s w hen t h e y do n o t h a v e t h e r e s e r v e s n e c e s s a r y
.to do t h i s ,
E n g la n d I s a c o u n t r y t h a t m u st l i v e b y im p o r t s .
T w ot h i r d s o f th e fo o d co n su m ed b y t h e B r i t i s h p e o p le a n d v i r t u
a l l y a l l o f t h e b a s i c ra w m a t e r i a l s , e x c e p t c o a l , u s e d i n
B r i t i s h i n d u s t r y m ust be p u rc h a s e d a b ro a d ? As a c o n s e q u e n c e ,
E n g la n d i s a g r e a t im p o r t in g c o u n t r y ,
^he i s t h e b e s t c u s
to m e r o f t h e U n it e d S t a t e s a n d o f a s c o r e o f o t h e r c o u n t r i e s .
6
W hat E n g la n d d o e s to e l i m i n a t e W a rtim e c u r r e n c y an d t r a d e
r e s t r i c t i o n s w i l l a f f e c t o u r t r a d e and t h e t r a d e o f t h e
e n t i r e w o r ld .
E n g la n d ’ s i n t e r n a t i o n a l e c o n o m ic p o s i t i o n h a s b e e n s e r
i o u s l y d i s t o r t e d b y th e w a r .
F o r f i v e y e a r s , E n g la n d w as
t h e p r i n c i p a l t a r g e t o f. th e L u f t w a f f e , a s w e l l a s th e p r i n
c i p a l b a se o f o p e r a t io n s o f th e W e ste rn a l l i e s a g a in s t ■
G e rm a n y .
H e r l i f e w as a t s t a k e , and o u r s .
T he p u n is h m e n t
w h ic h sh e t o o k - a n d w h ic h sh e h a n d e d o u t - w r o t e s t i r r i n g
c h a p t e r s i n th e h i s t o r y o f f r e e m en.
I sp e a k o f t h is n o t as a re a s o n f o r th e F in a n c ia l A g re e
m e n t, b e c a u s e th e A g re e m e n t l o o k s to t h e p r e s e n t and th e
f u t u r e , n o t to t h e p a s t , b u t I s p e a k o f i t t o e m p h a s iz e t h a t
d u r i n g t h e w a r , E n g la n d had l i t t l e tim e t o t h i n k o f h e r
e x p o rt tra d e .
She d e v o t e d e v e r y r e s o u r c e w h ic h sh e c o u ld
m o b i l i z e to h e r d e f e n s e and to t h e a t t a c k on t h e en em y.
B r i t i s h e x p o r t s f e l l u n t i l , b y 1 9 4 4 , t h e y w e re o n l y 30 p e r c e n t
o f t h e i r p r e w a r v o lu m e .
The men r e l e a s e d fro m t h e e x p o r t i n
d u s t r i e s w e re n u t t o w o rk a t w a r p r o d u c t i o n o r w e re in d u c t e d
i n t o t h e arm ed f o r c e s .
L e n d - le a s e fro m th e U n it e d S t a t e s and' M u t u a l A id fro m
C a n a d a f i l l e d p a r t o f th e g ap b e tw e e n h e r w a r t im e n e e d s m o s t ly f o r o u r common c a u s e - and h e r c u r r e n t s u p p ly o f
f o r e ig n e x ch a n g e .
N e v e r t h e l e s s , sh e h a d to d ra w h e a v i l y on
h e r a c c u m u la t e d f o r e i g n e x c h a n g e r e s o u r c e s , and s t r a i n h e r
c r e d i t a b ro a d in o r d e r to s e c u re h e r e s s e n t i a l w ar im p o r t s .
She s o ld $ 4 . 5 b i l l i o n o f h e r f o r e i g n i n v e s t m e n t s ; sh e r e d u c e d
h e r g o ld and d o l l a r r e s e r v e s b y $ 6 1 5 m i l l i o n ; and sh e i n c u r r e d
f o r e i g n d e b t s w h ic h now am ount t o m ore t h a n $ 1 3 b i l l i o n , v e r y
l a r g e l y b lo c k e d s t e r l i n g b a l a n c e s h e ld b y f o r e i g n e r s i n L o n d o n .
As a r e s u l t o f h e r w a r e f f o r t , B r i t a i n ’ s i n t e r n a t i o n a l f i n a n
c i a l p o s i t i o n d e t e r i o r a t e d b y a b o u t $ 1 7 b i l l o n fro m 1 9 3 9 to1945.
M e a n w h ile , B r i t a i n ’ s e a r n i n g s a b ro a d fro m s h i p p i n g an d
o th e r s e r v ic e s have a ls o been s h a r p ly re d u c e d .
B ecause o f
enem y s i n k i n g s , t h e B r i t i s h m e rc h a n t m a r in e i s o n e - f o u r t h
s m a lle r th a n b e fo re th e w a r, in s p it e o f th e la r g e b u ild in g
p ro g ra m .
The e a r n in g s fro m f i n a n c i a l an d c o m m e r c ia l s e r v i c e s
h a v e f a l l e n o f f a lo n g w i t h E n g la n d ’ s t r a d e a n d s h i p p i n g . W it h
th e r e c o v e r y o f w o r ld t r a d e , t h e s e s e r v i c e s w i l l a g a in e x p a n d
and becom e a n im p o r t a n t p a r t o f E n g la n d ’ s f o r e i g n b u s i n e s s .
7
B e f o r e t h e w a r th e B r i t i s h p e o p le w e re a b le t o e a r n
e n o u g h fro m t h e i r e x p o r t s a n d t h e i r s e r v i c e s to f o r e i g n e r s to
p u r c h a s e a b r o a d th e fo o d an d raw m a t e r i a l s e s s e n t i a l t o t h e i r
econom y.
I n 1 9 3 8 , a b o u t o n e - h a l f o f B r i t a i n ’ s Im p o r t s w as
p a id f o r b y th e e x p o r t o f B r i t i s h g o o d s • A b o u t o n e - f o u r t h w as
p a id f o r b y s e r v i c e s o f t h e B r i t i s h m e rc h a n t m a r in e , i n s u r a n c e
c o m p a n ie s , and o t h e r f i n a n c i a l a n d c o m m e r c ia l i n s t i t u t i o n s .
An a d d i t i o n a l o n e - f o u r t h w as p a id f o r o u t o f t h e n e t in co m e o f
B r i t i s h c a p i t a l in v e s t m e n t s a b r o a d .
The B r i t i s h p e o p le h a v e i n d u s t r i o u s l y s e t a b o u t t o r e s t o r e
t h e i r i n t e r n a t i o n a l e c o n o m ic p o s i t i o n .
They a re r e c o n v e r t in g
t h e i r w ar in d u s t r ie s to c i v i l i a n p r o d u c t io n .
T h e y a r e m a k in g
a d e t e r m in e d e f f o r t to i n c r e a s e t h e i r i n d u s t r i a l e f f i c i e n c y .
T h e y a r e e x p o r t i n g a s m uch a s t h e y c a n w i t h o u t d e p r i v i n g th em
s e l v e s o f th e e s s e n t i a l s o f l i f e .
T h e s e a r e p r o b le m s w h ic h
th e B r i t i s h p e o p le m u st w o rk o u t f o r t h e m s e lv e s o v e r t h e n e x t
fe w y e a r s .
B u t d u r i n g t h i s t r a n s i t i o n p e r i o d , t h e f e e d in g o f
t h e B r i t i s h n e o p le a n d t h e s u p p l y i n g o f B r i t i s h i n d u s t r y w i l l
r e s u lt in a s u b s t a n t ia l need f o r f o r e ig n c r e d it .
The B r i t i s h c a n f i n a n c e t h i s t r a n s i t i o n a l n e e d i n one o f
tw o w a y s .
One i s th e r o a d o f e c o n o m ic b l o c s an d e c o n o m ic w a r
fa re .
I t i s th e r o a d o f e c o n o m ic i s o l a t i o n .
T'he o t h e r i s
th e ro a d o f B r e t t o n W o o d s.
I t i s th e r o a d o f I n t e r n a t i o n a l
e c o n o m ic c o o p e r a t i o n .
D u r in g t h e w a r E n g la n d im p o s e d c o m p r e h e n s iv e c u r r e n c y and
tra d e r e s t r ic t io n s .
T h e s e r e s t r i c t i o n s w e re one a s p e c t , an d a
v e r y n e c e s s a r y a s p e c t , o f B r i t a i n ’ s w a r t im e f i n a n c i n g .
W hat
E n g la n d d i d , i n e f f e c t , w as to c r e a t e - a n e c o n o m ic b l o c com posed
o f th e B r i t i s h E m p ir e e x c e p t C a n a d a , and i n c l u d i n g a n u m b e r o f
o t h e r c o u n t r i e s , p r i n c i p a l l y i n t h e M id d le E a s t .
T h is b lo c i s
now i n o p e r a t io n . .
I f E n g la n d c a n n o t g e t h e l p i n m e e t in g h e r
im p o r t n e e d s o v e r t h e n e x t few y e a r s , sh e w i l l be f o r c e d t o
c o n t in u e a n d e v e n e x t e n d h e r w a r t im e r e s t r i c t i o n s and d i s c r i m i
n a t io n s .
The g r e a t d a n g e r b e f o r e u s i s t h e d i v i s i o n o f t h e w o r ld
in t o c o n f l i c t i n g b lo c s .
I n t h e e c o n o m ic s p h e r e , we a r e t r y i n g
t o m eet t h i s p r o b le m t h r o u g h c o o p e r a t i o n i n t h e W o rld F u n d ' a n d
B a n k . I f E n g la n d a d o p t s t h e f a i r c u r r e n c y a n d t r a d e p r a c t i c e s
we h a v e p r o p o s e d , i t may b e p o s s i b l e to a v o id t h e f o r m a t io n o f
a b l o c o u t s i d e th e Fund and B a n k u n d e r t h e l e a d e r s h i p o f a
g r e a t p o w e r.
B u t i f E n g la n d f i n d s i t n e c e s s a r y t o k e e p h e r
w a r t im e r e s t r i c t i o n s , i t w i l l r e s u l t i n a B r i t i s h b l o c and a n
A m e r ic a n b l o c .
And i t w i l l a l s o a c t a s a n e n c o u ra g e m e n t t o a
R u s s ia n b l o c .
S u c h a d e v e lo p m e n t w o u ld b e a m enace t o p e a c e
and p r o s p e r i t y e v e ry w h e re .
No c o u n t r y w a n t s t h i s k in d o f
w o r ld ;
no c o u n t r y can«, a f f o r d t h i s k i n d o f w o r l d .
8
T h e B r i t i s h p e o p le h a v e showia c l e a r l y t h e i r d e s i r e to
c o o p e r a t e i n b u i l d i n g a w o r ld i n w h ic h t r a d e c a n be c a r r i e d
on f u l l y a n d f a i r l y .
The B r i t i s h p e o p le a r e w i t h u s i n o u r
e f f o r t to s e c u r e th e w id e s t p o s s i b l e f lo w o f w o r ld t r a d e b y
e s t a b l i s h i n g s t a b l e and o r d e r l y c o n d i t i o n s .
T h e y know t h a t
r e s t r i c t i o n s and d i s c r i m i n a t i o n s s t i f l e w o r ld t r a d e and
le a d t o c o n f l i c t s w h ic h ca n h a v e d i s a s t r o u s c o n s e q u e n c e s ,
B u t B r i t a i n c a n n o t a b a n d o n h e r w a r t im e c u r r e n c y an d t r a d e
r e s t r i c t i o n s u n l e s s s h e s e c u r e s h e l p , p r i m a r i l y fro m t h e
U n it e d S t a t e s a n d C a n a d a ,
V vith s u c h h e l p , E n g la n d w o u ld be
a b le to p u t i n t o e f f e c t t h e f a i r c u r r e n c y an d t r a d e s t a n d a r d s
w h ic h we h a v e p r o p o s e d and w h ic h s h e s u p p o r t s .
A f t e r f r i e n d l y d i s c u s s i o n s o v e r s e v e r a l m o n th s , th e
A m e ric a n and B r i t i s h n e g o t i a t o r s a g r e e d t h a t E n g la n d w o u ld
n e e d a c r e d i t o f f e ^ 3 / € b i l l i o n fre m t h e U n it e d S t a t e s , T h i s
c r e d i t , t o g e t h e r w i t h t h a t fr o m C a n a d a , w i l l e n a b le E n g la n d
t o - c o n t i n u e h e r e s s e n t i a l im p o r t s d u r i n g th e n e x t fe w y e a r s ,
w h i l e r e m o v in g t h e w a r t im e c u r r e n c y a n d t r a d e r e s t r i c t i o n s
and d i s c r i m i n a t i o n s .
The F i n a n c i a l A g re e m e n t t h u s p r o v i d e s
two t h i n g s , a co m m itm en t t o end d i s c r i m i n a t o r y c u r r e n c y an d
t r a d e p r a c t i c e s and a c r e d i t t o e n a b le E n g la n d t o c a r r y o u t
t h e c o m m itm e n t.
H e re
is
w h a t th e
F i n a n c i a l A g re e m e n t p r o v i d e s :
1,
E n g la n d w i l l n o t d is c r im in a t e a g a i n s t A m e r ic a n
p r o d u c t s i n a n y o f h e r im p o r t c o n t r o I s ,
S o lo n g a s
sh e b u y s c o t t o n o r f r u i t s a b r o a d , sh e w i l l n o t d i s
c r i m i n a t e a g a i n s t t h e im p o r t o f A m e ric a n c o t t o n o r
f r u it s ,
I f i t . b eco m es n e c e s s a r y f o r E n g la n d t o l i m i t
h e r a g r i c u l t u r a l o r i n d u s t r i a l im p o r t s , t h i s w i l l be
d o n e on a b a s i s f a i r t o a l l c o u n t r i e s , , i n c l u d i n g th e
U n it e d S t a t e s ,
2.
F 0 r a n y g o o d s o r s e r v i c e s p u r c h a s e d i n th e
U n it e d S t a t e s , E n g la n d w i l l p a y i n d o l l a r s o r i f
p a ym e n t i s made i n p o u n d s , A m e r ic a n e x p o r t e r s w i l l
be a b le to c o n v e r t th e s t e r l i n g i n t o d o l l a r s .
That
g o e s f o r A m e r ic a n m o v ie s a s w e l l a s A m e r ic a n m a c h in e r y .
And i t a p p l i e s t o in co m e fro m A 'm e ric a n in v e s t m e n t s
i n E n g la n d ,
No A m e r ic a n f i r m n e e d h e s i t a t e t o do
b u s i n e s s w i t h E n g la n d f o r f e a r t h a t i t s e a r n i n g s c a n
n o t be t r a n s f e r r e d ,
A m e ric a n b u s in e s s m e n w i l l be
j u s t a s s u r e o f p a ym e n t i n d o l l a r s fro m E n g la n d a s
t h e y w e re b e f o r e t h e w a r ,
9
3 . W it h i n a y e a r , u n l e s s we a g r e e t o a t e m p o r a r y .•
e x t e n s i o n , E n g la n d w i l l rem o ve a l l o f t h e r e s t r i c t i o n s
on t h e c o n v e r t i b i l i t y o f S t e r l i n g f o r o r d i n a r y c u r r e n t
t r a n s a c t io n s .
I n p r a c t i c e , t h i s w i l l mean t h a t th e
m oney t h a t E n g la n d p a y s to C a n a d a , A u s t r a l i a an d I n d i a
f o r h e r im p o r t s w i l l be c o n v e r t e d b y E n g la n d i n t o d o l
l a r s a n d c a n be u s e d b y t h e s e c o u n t r i e s to p a y f o r
g o o d s t h e y p u r c h a s e i n th e U n it e d S t a t e s ,
4.
w i t h i n a y e a r , u n l e s s we a g r e e t o a te m p o
r a r y e x t e n s i o n , E n g la n d w i l l d i s s o l v e t h e S t e r l i n g
A re a D o l l a r P o o l.
E a ch c o u n t r y in th e s t e r l i n g
a r e a w i l l be c o m p le t e ly f r e e t o 'u s e a n y d o l l a r s I t
e a r n s t o b u y g o o d s -a n y w h e re ,
I n d i a , f o r e x a m p le ,
c o u ld u s e t h e d o l l a r s i t g e t s f o r i t s e x p o r t s to th e
U n it e d S t a t e s and L a t i n A m e ric a w it h o u t t u r n i n g o v e r
a n y p a r t o f them t o E n g la n d ,
'
V,
"A.
V
'■
5.
A s e t t le m e n t w i l l be made b y E n g la n d w i t h
t h e C o u n t r ie s h o l d i n g b lo c k e d s t e r l i n g b a l a n c e s .
E n g la n d h a s a g r e e d t h a t a n y p a ym e n t i n l i q u i d a t i o n
o f t h e s e b lo c k e d b a la n c e s c a n b e u s e d to b u y g o o d s
i n a n y c o u n t r y , i n c l u d i n g t h e U n it e d S t a t e s . I n s t e a d
o f b e in g f o r c e d t o s p e n d t h e b lo c k e d s t e r l i n g b a l a n
c e s i n E n g la n d , t h e h o l d e r s o f t h e s e b a l a n c e s , l i k e
I n d i a and E g y p t , w i l l be f r e e to b u y g o o d s w h e r e v e r
th e y p r e f e r .
A m e ric a n e x p o r t e r s w i l l h a v e a f a i r
c h a n c e to e x p o r t i n t h e s e m a r k e t s .
6.
I n a d d i t i o n , E n g la n d h a s a g r e e d to s u p p o r t
th e A m e r ic a n p r o p o s a l f o r a n I n t e r n a t i o n a l t r a d e
o r g a n i z a t i o n to r e d u c e t r a d e b a r r i e r s an d e l i m i n a t e
tra d e d is c r im in a t io n s .
W it h E n g la n d s u p p o r t i n g t h i s
p r o p o s a l , t h e f o r t h c o m in g U n it e d N a t io n s T r a d e C o n
f e r e n c e h o ld s f o r t h e v e r y p r o s p e c t o f s u c c e s s .
T h e s e s i x co m m itm e n ts a r e im p o r t a n t c o m m itm e n ts .
They
r e p r e s e n t a w h o le h e a r t e d a d o p t io n o f th e l e t t e r a n d s p i r i t
o f t h e U n it e d N a t io n s p ro g ra m f o r f a i r c u r r e n c y and t r a d e
p r a c t ic e s .
To c a r r y o u t t h e s e co m m itm e n ts E n g la n d w i l l n e e d
h e lp d u r i n g t h e n e x t fe w y e a r s .
T h a t h e l p sh e w i l l g e t fro m
t h e c r e d i t u n d e r t h e F i n a n c i a l A g re e m e n t w i t h th e U n it e d
S t a t e s a n d , ' i t s h o u ld be a d d e d , fro m th e same F i n a n c i a l
A g re e m e n t w i t h C a n a d a .
10
I f C o n g r e s s a p p r o v e s , t h e U n it e d S t a t e s G o v e rn m e n t w i l l
o p e n a l i n e o f c r e d i t o f $ 3 - 3 / 4 b i l l i o n i n f a v o r o f E n g la n d .
T h i s c r e d i t c a n he d ra w n on b y E n g la n d u n t i l D e ce m b e r 31 ,
1 9 5 1 , to p u r c h a s e g o o d s a n d s e r v i c e s i n t h e U n it e d S t a t e s .
I t c a n a l s o be u s e d b y E n g la n d f o r m e e t in g th e t r a n s i t i o n a l
p o s t - w a r d e f i c i t i n h e r c u r r e n t b a la n c e o f p a y m e n ts , a n d f o r
h e l p i n g E n g la n d a ssu m e t h e o b l i g a t i o n s o f m u l t i l a t e r a l t r a d e .
None o f t h e c r e d i t c a n be u s e d f o r p a y in g o f f t h e b lo c k e d
s t e r l i n g b a la n c e s o r a n y o f B r i t a i n ’ s w a r t im e d e b t s ; t h e s e
o b l i g a t i o n s w i l l h a v e to be m et f r o m o t h e r r e s o u r c e s .
B e g in n in g i n 1 9 5 1 , E n g la n d w i l l r e p a y t h e c r e d i t o v e r a
5 0 -y e a r p e r io d , w it h in t e r e s t a t 2 p e r c e n t .
T he p r i n c i p a l o f
th e c r e d i t m u st be r e p a i d w it h o u t q u a l i f i c a t i o n .
U nder co n
d i t i o n s o f s e v e r e d e p r e s s i o n i n w o r ld t r a d e , t h e i n t e r e s t due
i n a n y g i v e n y e a r may be w a iv e d u n d e r o b j e c t i v e s t a n d a r d s
s t a t e d i n t h e A g re e m e n t.
I f s u c h a n e m e rg e n c y s i t u a t i o n d e
v e l o p s , i t i s c l e a r l y i n th e i n t e r e s t o f t h e U n it e d S t a t e s to
a c c e p t th e p r i n c i p a l a n d n o t to f o r c e a d e f a u l t w h ic h w o u ld
h a v e s e r i o u s c o n s e q u e n c e s t o th e wro r l d e co n o m y .
N a t u r a l l y , t h e i n t e r e s t r a t e i s l e s s t h a n B r i t a i n w o u ld
h a v e t o p a y on a s t r i c t l y c o m m e r c ia l l o a n o b t a in e d fro m
b a n k e ra .
T he F i n a n c i a l A g re e m e n t, h o w e v e r , i s m uch m ore t h a n
a lo a n .
I t i s a n A g re e m e n t on t h e m a jo r a s p e c t s o f f i n a n c i a l
and c o m m e r c ia l p o l i c y .
When we t a k e i n t o c o n s i d e r a t i o n th e
co m m itm e n ts we r e c e i v e fro m E n g la n d on h e r c u r r e n c y and t r a d e
p o l i c i e s , i t b e co m e s c l e a r t h a t t h e A g re e m e n t w o u ld a m p ly
r e p a y t h e A m e r ic a n p e o p le e v e n i f no i n t e r e s t w e re p a i d .
And
some w o u ld s a y we w o u ld h a v e made a g o o d in v e s t m e n t i f t h e
w h o le sum w e re a g i f t .
As a m a t t e r o f f a c t , th e in t e r e s t i s s u b s t a n t ia l.
If
t h e c r e d i t w e re u s e d i n f i v e e q u a l a n n u a l a m o u n ts and a l l
I n t e r e s t p a y m e n ts w e re m e t, t h e e f f e c t i v e r a t e o f i n t e r e s t
u n d e r t h e F i n a n c i a l A g re e m e n t w o u ld b e 1 . 8 3 p e r c e n t , and
o v e r $ 2 . 5 b i l l i o n o f i n t e r e s t w o u ld b e p a i d .
T he r a t e o f
i n t e r e s t i s r e a s o n a b l y c l o s e t o t h e a v e r a g e c o s t o f m oney
to t h e T r e a s u r y .
T h i s p o i n t w i l l b e a r e m p h a s is :
th e c r e d i t i s o n ly a
p a r t o f th e F i n a n c i a l A g re e m e n t .. The p u rp o s e o f th e F in a n c ia l
A g re e m e n t i s t o e n a b le E n g la n d t o p a r t i c i p a t e f u l l y I n o u r
i n t e r n a t i o n a l e c o n o m ic p r o g r a m .
The f u l l p a r t ic ip a t io n o f
B r i t a i n i n t h i s p ro g ra m i s n e c e s s a r y i f i t i s t o becom e e f
f e c t iv e .
The a p p r o v a l o f t h e F i n a n c i a l A g re e m e n t b y C o n g r e s s
w i l l a s s u r e t h e im p le m e n t a t io n o f o u r w h o le I n t e r n a t i o n a l
e c o n o m ic progr*am..
11
The c r e d i t to B r i t a i n c a n n o t, be a p r e c e d e n t f o r a lo a n
to a n y o t h e r c o u n t r y .
T he N a t i o n a l A d v i s o r y C o u n c i l on
I n t e r n a t i o n a l M o n e ta ry a n d F i n a n c i a l P r o b le m s h a s i s s u e d a
s t a t e m e n t o f o u r f o r e i g n l o a n p o l i c y i n w h ic h t h i s i s made
c le a r .
I r e a d fro m t h a t r e p o r t s
"T h e p r o p o s e d lo a n to B r i t a i n , r e q u i r i n g -Con
g r e s s i o n a l a u t h o r i z a t i o n , i s a s p e c i a l c a s e , b u t one
w h ich - i s an i n t e g r a l p a r t o f t h e f o r e i g n e c o n o m ic
p ro g ra m o f t h i s G o v e rn m e n t.
No o t h e r c o u n t r y h a s
th e same c r u c i a l p o s i t i o n i n w o r ld t r a d e a s E n g la n d .
B e c a u s e o f th e w id e u s e o f th e p oun d s t e r l i n g i n
w o r ld t r a d e , t h e l a r g e p r o p o r t i o n o f t h e w o r l d ’ s
t r a d e w h ic h i s c a r r i e d on b y th e c o u n t r i e s o f th e
B r i t i s h E m p ir e , a n d t h e e x tr e m e d e p e n d e n c e o f
E n g la n d u p o n im p o r t s , th e f i n a n c i a l a n d c o m m e r c ia l
p r a c t ic e s o f B r i t a i n a re o f u tm o st s i g n i f i c a n c e in
d e t e r m in in g w h at k in d o f w o r ld econom y we s h a l l
have.
The e a r l y r e a l i z a t i o n o f th e f u l l o b j e c t i v e s
o f t h e B r e t t o n Woods p ro g ra m , i n c l u d i n g th e e l i m i n a
t io n o f exch an g e r e s t r i c t i o n s and o t h e r b a r r i e r s to
w o r ld t r a d e and in v e s t m e n t , r e q u i r e s an im m e d ia te
s o l u t i o n to B r i t a i n 1 s f i n a n c i a l p r o b le m .
The I n t e r
n a t i o n a l M o n e t a ry Fun d a g re e m e n t p e r m it s th e c o n
t in u e d i m p o s i t i o n o f c e r t a i n o f t h e s e r e s t r i c t i o n s
f o r a s m uch a s 5 y e a r s ; i n t h e f i n a n c i a l A g re e m e n t
o f D ecem ber 6, 1 9 4 5 , th e B r i t i s h a g re e to t h e i r r e
m o v a l w i t h i h 1 y e a r fro m t h e e f f e c t i v e d a t e o f t h a t
A g re e m e n t.
I t i s t h e v ie w o f t h e C o u n c i l t h a t th e
B r i t i s h c a s e i s u n iq u e a n d w i l l n o t be a p r e c e d e n t
f o r a lo a n to a n y o t h e r c o u n t r y ."
O t h e r ^ c o u n t r ie s w i l l n eed h e lp .
T h i s h e lp w i l l be a v a i l
a b le to them fr o m t h e i n s t i t u t i o n s t h a t a r e now i n o p e r a t i o n .
The I n t e r n a t i o n a l F u n d w i l l p r o v i d e h e l p n e e d e d f o r c u r r e n c y
s t a b iliz a t io n .
The In t e r n a t io n a l B ank w i l l be th e p r i n c i p a l
a g e n c y t o f a c i l i t a t e f o r e i g n lo a n s o u t o f p r i v a t e c a p i t a l f o r
r e c o n s t r u c t i o n and d e v e lo p m e n t .
I n t h e e m e rg e n c y p e r i o d ,
u n t i l th e I n t e r n a t i o n a l B a n k i s i n f u l l o p e r a t i o n , t h e E x p o r t
Im p o r t B a n k w i l l m e e t o n ly t h e m o st u r g e n t n e e d s f o r r e c o n
s t r u c t io n a id .
I t i s th e p o l i c y o f t h i s G o v e rn m e n t t o make
t h e a g e n c ie s e s t a b l i s h e d b y t h e U n it e d N a t io n s * t h e m eans f o r
c o n t i n u i n g c o o p e r a t io n on c u r r e n c y end in v e s t m e n t p r o b le m s ,
and t o l e a v e to t h e s e i n s t i t u t i o n s t h e t a s k o f p r o v i d i n g th e
f u n d s n e c e s s a r y t o im p le m e n t t h i s p r o g r a m .
-
12
-
T h e r e a r e some p e o p le who r e c o g n iz e t h a t i t i s i n th e
i n t e r e s t o f t h e U n it e d S t a t e s t o o f f e r E n g la n d t h e p r o p o s e d
c r e d i t , b u t t h e y f e a r t h a t t h e c r e d i t w i l l add. to i n f l a t i o n a rT p r e s s u r e s i n t h i s c o u n t r y ,
I am m uch c o n c e r n e d a b o u t
th e i n f l a t i o n p r o b le m ,
I kn o w , fro m f i r s t - h a n d e x p e r i e n c e ,
how im p o r t a n t t h e i n f l a t i o n p r o b le m i s i n t h i s c o u n t r y ,
I
b e l i e v e t h a t th e c r e d i t t o B r i t a i n w i l l n o t m a t e r i a l l y i n
c r e a s e th e d a n g e r o f i n f l a t i o n .
The t o t a l am ount o f c r e d i t t o E n g la n d u n d e r th e
F i n a n c i a l A g re e m e n t i s l e s s t h a n o n e - h a l f o f one p e r c e n t o f
t h e a g g r e g a t e e x p e n d it u r e s i n t h i s c o u n t r y i n th e n e x t f i v e
y e a rs.
A c o n s i d e r a b l e p a r t o f th e c r e d i t w i l l be u s e d i n
l a t e r y e a r s w hen t h e s u p p ly p r o b le m i s l e s s a c u t e .
Some o f
th e c r e d i t w i l l u n d o u b t e d ly be u s e d f o r g o o d s t h a t a r e i n
a b u n d a n t s u p p ly .
I n e v i t a b l y , some o f t h e c r e d i t w i l l be
needed f o r goods t h a t a re in s c a r c e s u p p ly .
T he Comm erce
D e p a rt m e n t e s t im a t e s t h a t a b o u t o n e - f o u r t h o f th e p r o c e e d s o f
f o r e i g n lo a n s w i l l be s p e n t on s u c h p r o d u c t s .
In th o se c a s e s
a llo c a t io n and e x p o rt c o n t r o ls w i l l p re v e n t a n y undue d r a in
on o u r d o m e s t ic s u p p ly and a s s u r e t h e m inim um e s s e n t i a l n e e d s
o f o th e r c o u n t r ie s .
I n th e end t h e w ay t o b e a t th e i n f l a t i o n p r o b le m i s to
p ro d u c e enough g o o d s.
T he F i n a n c i a l A g re e m e n t w i l l e n c o u r a g e
p r o d u c t io n i n t h i s c o u n t r y a n d a b r o a d b y r e m o v in g th e r e s t r i c
t i o n s w h ic h h a m p e r t r a d e .
T h e F i n a n c i a l A g re e m e n t w i t h E n g la n d i s a n e s s e n t i a l p a r t
o f o u r w h o le p ro g ra m o f i n t e r n a t i o n a l e c o n o m ic c o o n e r a t i o n .
T h is p ro g ra m o f th e U n it e d N a t io n s i s c o n c e r n e d w i t h some o f
th e m o st im p o r t a n t , p r o b le m s o f e v e r y d a y l i f e , . How. we m eet
t h e s e p r o b le m s w i l l d e t e r m in e i n l a r g e p a r t w h e t h e r th e U n it e d
S t a t e s and t h e w d r ld w i l l a g a i n go t h r o u g h d e v a s t a t i n g c y c l e s
o f w a r and d e p r e s s i o n o r w h e t h e r a t lo n g l a s t we r e a l i z e t h e
hope f o r p eace and p r o s p e r it y .
I f we do n o t rem o ve th e i r r i t a t i o n s and a l l e v i a t e t h e
im p e d im e n t s to t r a d e , we f e e d t h e g r e e d y god o f w a r a n d l a r g e l y
n u l l i f y th e o t h e r e f f o r t s we make to w a rd a s t a b l e e n d u r in g
peace.
B u t i f we m eet o u r p r o b le m s i n t h e f i e l d s o f i n t e r
n a t i o n a l e x c h a n g e a n d w o rld , t r a d e and b u i l d a s o u n d e c o n o m ic
.o r d e r i n t h e s e v e r a l U n it e d N a t io n s an d i n t h e w o r l d , we c r e
a t e a n a t m o s p h e r e c o n d u c iv e t o p e a c e , ' And g ood e c o n o m ic
r e l a t i o n s h i p s b e t w e e n n a t i o n s c a n , i n t h e m s e lv e s , g i v e u s
m ore th a n a f i g h t i n g c h a n c e f o r l a s t i n g p e a c e .
13
I w a n t t o s t r e s s t h e im p o r t a n c e o f ,p r o d u c t i o n and
e m p lo ym e n t r i g h t h e r e a t hom e.
T he U n it e d S t a t e s i s th e
g r e a t e s t s i n g l e e c o n o m ic f o r c e i n t h e e n t i r e w o r l d .
The
l e v e l o f o u r n a t i o n a l in c o m e i s t h e d e t e r m in a n t o f w o r ld
tra d e *
I f we m a in t a in p r o d u c t i o n and. e m p lo y m e n t, w o r ld
tra d e w i l l f lo u r is h *
The g r e a t e s t c o n t r i b u t i o n th e U n it e d
S t a t e s ca n make t o t h e p e a c e and p r o s p e r i t y o f t h e w o r ld i s
to k e e p A m e ric a s t r o n g an d p r o s p e r o u s a n d t h e a d v o c a t e o f
j u s t i c e i n t h e c o u n c i l o f th e n a t i o n s ,
T h i s i s a w o r ld i n w h ic h a l l c o u n t r i e s m u st s h a r e th e
same d e s t i n y .
I t w i l l be p e a c e and p r o s p e r i t y f o r a l l , o f
w ar and d e p r e s s io n f o r a l l .
We c a n n o t e s c a p e f r o m 't h e s e
p r o b le m s b y w it h d r a w in g fro m th e w o r l d .
P o lit ic a l or
e c o n o m ic i s o l a t i o n I s a n a n a c h r o n is m ; i t i s a d a n g e r o u s
p o lic y b ecause i t is u n r e a l.
T h e r e I s o n ly one w ay to as<s u r e t h e s e c u r i t y and w e l f a r e o f t h i s c o u n t r y .
T h a t i s to
f a c e t h e w o r l d ’ s p r o b le m s an d d e a l w i t h them. I n c o o p e r a t io n
w it h o t h e r c o u n t r ie s .
0O 0
2
Mr* Wilson, himself the son of a Buffalo, New York,
police officer, began his Treasury career in 1920 when
he was appointed Special Agent of the Intelligence Unit,
Bureau of Internal Revenue*
His service with the Intelligence Unit, where he
also served under Mr. Irey, was highlighted by his work
in the Investigation of evasion of income taxes at
Chicago which resulted in the conviction of A1 Capone and
other highly organized racketeers.
He also figured promi
nently in the Lindbergh kidnaping' case, helping to evolve
and carry out the strategy which resulted ultimately in
the conviction of the slayer Haupmann.
Chief Wilson initiated the Secret Service educational
program of crime prevention which has attracted inter
national attention among police officers, educators, peno
logists and welfare organizations.
He has been a leading
advocate of a nationally coordinated attack on problems of
Juvenile delinquency.
Under his supervisionctthe Service, losses to the
public from counterfeiting have dropped from figures in
year to less than $30,000.
oOo
i/s 5 (o
Secretary Vinson today announced that Prank J. Wilson,
Chief of the United States Secret Service, has been tempo
rarily detailed to act as Assistant to Elmer L. Irey, Chief
Coordinator, in planning and directing the post-war program
of the Treasury Enforcement Agencies.
Mr. Vinson said that the return from military service
of many key men of the various agencies, many of them from
vital intelligence assignments, now makes possible a longplanned general intensification of enforcement work which
the manpower situation heretofore has not permitted.
The Secretary said that Mr, Wilson»s long and distin
guished career as a Treasury officer makes him peculiarly
qualified to assist Mr. Irey in the new work in his office.
While Mr. Wilson is on this assignment, James J. Maloney,
now his Assistant, will be Acting Chief of the Secret
Service.
The Coordination staff formulates and carries out
policies of general application to the seven Treasury
enforcement agencies, of which the Secret Service is one.
It promotes cooperative activities in such matters as joint
investigations and utilization of personnel and equipment,
and supervises personnel character investigations and related
activities for the Department.
TREASURY DEPARTMENT
W a s h in g t o n
FOR IMMEDIATE RELEASE,
T u e s d a y . Mav 1 4 . 1 9 4 6 T
P r e s s S e r v ic e
N o . V -3 2 6
S e c r e t a r y V in s o n to d a y a n n o u n c e d t h a t F r a n k J , W ils o n ,
C h i e f o f t h e H n it e d S t a t e s S e c r e t S e r v i c e , h a s b e e n tem po
r a r i l y d e t a i l e d t o a c t a s A s s i s t a n t t o E lm e r L . I r e y , C h i e f
C o o r d in a t o r , i n p la n n in g and d i r e c t i n g th e p o s t - w a r p ro g ra m
o f th e T r e a s u r y E n fo rc e m e n t A g e n c ie s .
M r. V in s o n s a i d t h a t the. r e t u r n fro m m i l i t a r y s e r v i c e
o f many k e y men o f th e v a r i o u s a g e n c ie s , many o f them fro m
v i t a l i n t e l l i g e n c e a s s ig n m e n t s , now m akes p o s s i b l e a lo n g p la n n e d g e n e r a l i n t e n s i f i c a t i o n o f e n fo rc e m e n t w o rk w h ic h
th e m anpow er s i t u a t i o n h e r e t o f o r e h a s n o t p e r m it t e d .
The S e c r e t a r y s a i d t h a t M r. W i l s o n ’ s lo n g
g u is h e d c a r e e r a s a T r e a s u r y o f f i c e r m akes him
q u a l i f i e d to a s s i s t M r. I r e y i n th e new w o rk i n
W h ile M r. W ils o n i s
on t h i s a s s ig n m e n t , Jam es
now h i s A s s i s t a n t , w i l l be A c t in g C h i e f o f th e
and d i s t i n
p e c u lia r ly
h is o f f ic e .
J . M a lo n e y ,
S e c r e t S e r v ic e
The C o o r d in a t io n s t a f f f o r m u la t e s and c a r r i e s o u t
p o l i c i e s o f g e n e r a l a p p l i c a t i o n to th e s e v e n T r e a s u r y e n f o r c e
ment a g e n c ie s , o f w h ic h the S e c r e t S e r v i c e i s o n e .
I t p ro
m o tes c o o p e r a t iv e a c t i v i t i e s i n s u c h m a t t e r s a s j o i n t i n v e s t l
g a t io n s and u t i l i z a t i o n o f p e r s o n n e l an d e q u ip m e n t, and
s u p e r v i s e s p e r s o n n e l c h a r a c t e r i n v e s t i g a t i o n s and r e l a t e d
a c t i v i t i e s f o r th e D e p a rt m e n t .
M r. W ils o n , h i m s e l f th e so n o f a B u f f a l o , New Y o r k ,
p o l i c e o f f i c e r , b e g a n h i s T r e a s u r y c a r e e r i n 1 9 2 0 when he
was a p p o in t e d S p e c i a l A g e n t o f th e I n t e l l i g e n c e U n i t ,
B u re a u o f I n t e r n a l R e v e n u e .
H is s e r v i c e w it h th e I n t e l l i g e n c e U n it , w h e re he a l s o
s e r v e d •u n d e r M r. I r e y , was h i g h l i g h t e d b y h i s w o rk i n th e
i n v e s t i g a t i o n o f e v a s io n o f incom e t a x e s a t C h ic a g o w h ic h
r e s u l t e d i n t h e c o n v i c t i o n o f A1 C apone and o t h e r h i g h l y
o r g a n iz e d r a c k e t e e r s .
He a l s o f i g u r e d p r o m in e n t ly i n th e
L in d b e r g h k id n a p in g c a s e , h e l p i n g t o e v o lv e and c a r r y o u t
t h e s t r a t e g y w h ic h r e s u l t e d u l t i m a t e l y i n th e c o n v i c t i o n
o f th e s l a y e r H auptm arln,
2
50 o
C h i e f W ils o n i n i t i a t e d t h e S e c r e t S e r v i c e e d u c a t i o n a l
u r o g ra m o f c r im e p r e v e n t i o n w h ic h h a s a t t r a c t e d i n t e r
n a t i o n a l a t t e n t i o n among p o l i c e o f f i c e r s , e d u c a t o r s , p e n o
l o g i s t s and w e l f a r e o r g a n i z a t i o n s ,
fíe h a s b e e n a l e a d i n
a d v o c a t e o f a n a t i o n a l l y c o o r d i n a t e d a t t a c k on p ro b le m s
ju v e n ile d e lin q u e n c y .
U n d e r h is s u p e r v is io n o f th e S e r v ic e , lo s s e s to th e
p u b l i c fr o m c o u n t e r f e i t i n g h a v e d r o p p e d fro m f i g u r e s i n
e x c e s s o f a m illio n d o lla r s a y e a r to le s s th a n ¿ 3 0 ,0 0 0 .
0O 0
MÍEN THIS RELEASE HAS BEEN MIMEOGRAPHED,
PLEASE FORWARD 8 COPIES TO ROOM h03, WILKINS BLDG.
Cigares
& daring
Pounds
AB
VX
A ]j/A A X
13^
Signatory Countries?
Brasil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Suatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
Signatory Countries:
TOTAL
gu 6.9 u9 .3 35
3 9 g .1 2 u .2 7 7
1 7 ,7 1 2 .3 2 5
253
17,U 35,6U 3
9 ,0 9 2 ,g 2 7
2 9 .3 Ú 9 ,0 9 5
U9 . 2UU.g57
1 5 ,2 7 0 ,lg 6
5 ,0 7 6 ,S21
U1 .g 53 .g 6i
1 1 .9 6 9 .7 3 6
2 ,3 * 3 ,2 3 2
3 2 ,5 0 3 ,3 17
26 . 992.U09
1 .5 0 U .3 5 8 .1 7 U
Th© above data reflects the amount of coffee for which
entries for consumption hare been reported as ef this date« As
returned weights are reported and until the final reports for
the period ending April 3® are completed, this release will he
continued. The final release will he so indicated.
m
FOR IMMEDIATE HEX,EASE
K»y
ljH6
The Bureau ©f Customs announced today preliminary figures
showing the fuantities of coffee entered for consumption during
the period commencing October 1, 19*H5, as follows:
Country of Production
Quantity in Pounds
As .f April 30, 19»+6
Signatory Countries?
Brazil
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
El Salvador
Shatemala
Haiti
Honduras
Mexico
Nicaragua
Peru
Venezuela
SU6 ,9^9.335
398,12»+,277
17.712,325
253
17,^35,61+3
9,092,327
29.3‘M, 095
1+9.2UU.857
15 ,270,186
5,076,321
1+1,853,861
11,969.736
2,383,232
32,903,317
Non-Signatory Countries:
TOTAL
26,992,1+09
1,50»+,358.171+
The above data reflects the amount of coffee for which
entries for consumption have been reported as of this date* As
returned weights are reported and until the final reports for
the period ending April 3© *ro completed, this release will be
continued. The final release will be so indicated.
TREASURY DEPARTMENT
W a s h in g t o n
FOR IM M EDIATE RELEASE
W e d n e s d a y , May 1 5 » 1 9 4 6
'
P re s s S e r v ic e
N o. V -3 2 7
The B u r e a u o f C u sto m s a n n o u n c e d t o d a y p r e l i m i n a r y f i g u r e s
s h o w in g t h e q u a n t i t i e s o f c o f f e e e n t e r e d f o r c o n s u m p t io n d u r i n g
t h e p e r i o d co m m en cin g O c t o b e r 1 , 1 9 4 5 , a s f o l l o w s ?
C o u n t r y o f P r o d u c t io n
Q u a n t it y i n P o u n d s
As o f A p r i l 3 0 , 1 9 4 6
S ig n a t o r y C o u n t r ie s :
8 4 6 ,9 4 9 ,3 3 5
3 9 8 ,1 2 4 ,2 7 7
1 7 ,7 1 2 ,3 2 5
253
1 7 ,4 3 5 ,6 4 3
9 ,0 9 2 ,8 2 7
2 9 ,3 4 9 ,0 9 5
4 9 ,2 4 4 ,8 5 7
1 5 ,2 7 0 ,1 8 6
5 ,0 7 6 ,8 2 1
4 1 ,8 5 3 ,8 6 1
1 1 ,9 6 9 ,7 3 6
2 ,3 8 3 ,2 3 2
3 2 ,9 0 3 ,3 1 7
B r a z il
C o lo m b ia
C o s t a R ic a
Cuba
D o m in ic a n R e p u b l i c
Ecuador
E l S a lv a d o r
G u a te m a la
H a it i
H o n d u ra s
M e x ic o
N ic a r a g u a
. P e ru
V e n e z u e la
N o n - S ig n a t o r y C o u n t r i'e s
%
2 6 ,9 9 2 ,4 0 9
TOTAL
1 ,5 0 4 ,3 5 8 ,1 7 4
The a b o v e d a t a r e f l e c t s t h e am ount o f c o f f e e f o r w h ic h
e n t r i e s f o r c o n s u m p t io n h a v e b e e n r e p o r t e d a s o f t h i s d a t e .
As r e t u r n e d w e ig h t s a r e r e p o r t e d a n d u n t i l t h e f i n a l r e p o r t s
f o r t h e p e r i o d e n d in g A p r i l 3 0 a r e c o m p le t e d , t h i s r e l e a s e
w i l l be C o n t in u e d *
The f i n a l r e l e a s e w i l l b e so i n d i c a t e d 0
(W*'
m y 7, 1946
70 MR. BARTILTs
The following market transactions were made during the
month of April, 1946, in direct and guaranteed securities of
the Government for Treasury investment and other accounts*
Purchases
$3*321*000
Sales •##*••**♦•♦*•#********■•*•****•** , --hdoe^
let Purchases ••••*••*••*•.... .
tap#
$3*321,000
<3re«n&erg
Joseph Greenberg
Assistant Commissioner of Accounts
CC to: Mr. Heffelfinger
Mr. Sh&effer
Miss Sanford
HHaud
TREASURY DEPARTMENT
W a s h in g t o n
FOR IM M EDIATE R ELEA SE ,
W e d n e s d a y , May 1 5 , 1 9 4 6 .
P re s s S e r v ic e
N o . V -3 2 8
D u r in g t h e m o n th o f A p r i l ,
in d ir e c t
T re a su ry
and g u a ra n te e d
1 9 4 6 , m a rk e t t r a n s a c t i o n s
s e c u r it ie s
o f t h e G o v e rn m e n t f o r
in v e s t m e n t and o t h e r a c c o u n t s r e s u l t e d
in n e t
p u r c h a s e s o f $ 3 , 3 2 1 , 0 0 0 , S e c r e t a r y V in s o n a n n o u n c e d t o d a y .
-o O o -
@FedFRASER